Approved Code No. 231 Registry No. 1628-06 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR CO1\1PETITIO~ 

FOR THE 

SURGICAL DRESSINGS 

INDUSTRY 

AS APPROVED ON JANUARY 27, 1934 

WE DO OUR PAR't 

' . 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 231 

CODE OF FAIR COMPETITION 

FOR THE 

SURGICAL DRESSINGS INDUSTRY 

As Approved on January 27, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

SURGICAL DRESSINGS INDUSTRY 

An application having been duly made pur uant to and in full 

compliance T1ith the provisions of Title I of the Jational Industrial 

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

Fair Competition for the Surgical Dressing 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 Pre ident: 

NOvV, 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 Executfre Order No. 6543-A, dated December 

30, 1933, and otherwi e; 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 aid Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved, provided, however, that continued participation of the Association of Surgical 

Dressings Manufacturers of the United States shall be contingent 

upon the amendment of the Constitution and By-Laws of such 

A sociation to the satisfaction of the Administrator on or before 

February 15, 1934. 

HUGH s. JOHNSON' 

Aclrninistrator fo1· Industrial R ecovery. 

Approval recommended: 

A. D. "\VHITESIDE, 

Division Adm,inistrator. 

1'7.A HINGTON, D.C. 

J anita1'y r27, 1934, 

36176°-013-Hl-34 (48,3) 
The PRESIDENT, 

The White Howse. 

INTRODUCTION 

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

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

Surgical Dressings Industry, as proposed by the Association of Surgical Dressings Manufacturers of the United States. The public 

hea·ring was conducted in '\,V ashington on November 2, 1933. Every 

person who requested an appearance was freely heard in accordance 

with statutory and regulatory requiren1ents. 

There are fifteen known firms in this Industry, of which ten are 

members of the Association and account for 95% of all surgical 

dressings produced. The five nonmembers, representing 5% or less 

of the total production, are, with two possible exceptions, more closely 

identified with other industries. 

DEFINITION 

The definition of the Industry, as stated in Article II, Section 1, of 

the Code appended hereto, has been so drawn as to exclude the manufacture of gauze. Absorbent surgical gauze, from which a high 

percentage of surgical dressings derives, is the staple of this Industry; it is manufactured from a light-weight, open weave cloth, made 

from standard print-cloth yarns and woven on standard looms, 

known in the cotton mill business as "tobacco cloth." Only four 

of the 1nembers of the Surgical Dressings Industry are known to own 

or control mills for the. production of gauze, and it was the contention of two of these manufacturers that the Surgical Dressings 

Industry should properly include the manufacture of gauze, now 

conducted under the Code of Fair Competition for the Cotton Textile IndUBtry as approved by you on July 9, 1933. Whereas it is 

apparent that advantages might conceivably accrue to those who 

manufacture both gauze and surgical dressings, any such advantages 

would be more than counterbalanced by the disrupting effect on the 

cotton textile industry and might work a competitive hardship on 

those manufacturers of surgical dressings who have to se.ak the open 

market for their gauze requirements. 

ECONOMIC AND STATISTICAL l\IATERIAL 

Sales volum.e for the peak years. of 1929 a.nd 1930 is estimated at 

$40,000,000 and employment at about 3,750. Whereas sales for 1933 

will probably be in the vicinity of only $25,000,000, employment at 

August 1, 1933 was approximately 4,000, an all-time high. Thus it 

would not appear that the Industry can reasonably be expected to 

do a great deal more in the direction of increased employment, al-

( 486) 
487 

though there is room for improvement in the matter 0£ increased 

purchasing power. In the fir t six months 0£ 1933 average hours 

worked were in exce s 0£ forty and six 0£ the members reported 

fifty hours or more. Rates 0£ pay were as low as 20¢ per hour for 

unskilled f emale workers, although a weighted average would doubtless be very much more satisf actory. 

I n this connection, it i pertinent to remark that something like 

75 % of the total production 0£ surgical dressings is in the hands of 

two manufacturers. This unu ual concentration of production has 

had to be a constant consideration in respect of all provisions in this 

Code because what might seem eminently fair for the large concern 

would constitute an inequitable competitive disadvantage :for the 

small. 

RESU:l\IE OF CODE PROVI IONS 

The Code establi hes 40 hours as the basic week £or production 

and 321⁄2¢ per hour as the minimum rate of pay. Owing in part 

to the application 0£ the President's Reemployment Agreement, it is 

afe to say that a substantial part of the indu try is already on a 

basis more £a vorable than that impo eel by the Code pro, i ion , but 

these provisions will, none the le s, require a real contribution toward 

recovery from the balance of the indu. try and particularly from the 

small units, amounting in ome ca,·es to at lea. t a 20 y' reduction in 

time and a 40 o gain in wages. I believe that any more stringent 

limitation at the pre ent time would en langer the existence 0£ the 

smaller units and disrupt the competitive situation in th indu try. 

The Code i unique in that there are no trade practice r eaulations. 

FINDINGS 

The D~puty Aclmini trator in hi:.:; final report to me on said Code 

having found us herein . et forth and on the basis of all the proceedings in this matter; 

I find that: 

(a) Said Code is ,vell designed to promote the policies and purposes of Titl I f the National Indu trial Recovery Act including 

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

commerce which tend to diminish the amount thereof and will provide £or thB general welfare by promoting the organization of 

industry for the purpo e of cooperative action amo·ng the trade 

groups, by inducing an 1 maintaining united action of labor and 

management under adequate goYernmental sanctions and supervision, by eliminating unfair competitive practices, by promoting 

the fulle t po ible utilization of the present productive capacity of 

inclurtries, by aYoicling undue r estriction of production ( except as 

may be temporarily required). by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by r educing and relieYing unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Inclu try normally employs not more than 50,000 

employees; and is not cla sifiecl by me as a n1.ajor indu try. 

(c) The Code as approYed complies in all re pe ts with the pertinent provisions of said Title of aid Act, including without limi-
488 

tation ub ection (a) 0£ Secti0n 3, Subsection (a) of Section 7, and 

Subsection (b ) of Section 10 thereof; and that the applicant asso- ciation i an indu trial association truly representative of the aforesaid Industry · and that said association im1)oses no inequitable 

r e trictions on admi sion to membership therein. 

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

or monopolistic practice . 

( e) The Code i. not de igned to and will not eliminate or oppress 

small enterprise · and will not operate to discriminate against them. 

( f) Those engaged in other steps of the economic process have not 

been depri,ed of the right to be heard prior to approval of said 

Code. 

F or the e rea ons, the Code has been approved. 

Respectfully, 

JANUARY 27, 1934:. 

l-IuGH S. JOHN ON, 

Ad11iinistrato1·. 
CODE OF FAIR COMPETITION 

FOR THE 

SURGICAL DRESSINGS 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 F.uir Competition for the Surgical Dressings Industry, and shall 

be the standard of fair competition for such Industry and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term "Surgical Dressings Industry", heTeinafter called "the 

Industry", as used herein, includes the 1nanufacture of surgical 

cotton, adhesive and medicated plasters, and the conversion of unbleached gauze to absorbent surgical gauze, gauze bandages, gauze 

sponges and pads, and related gauze or gauze and cotton dressings 

and/or those products made of other absorbent materials, such as 

cellulose wadding, but does not include sanitary napkins and cleansjng tissue. 

The term "employee' as used herein includes anyone engaged 

in the Industry in any capacity receiving compensation for his 

services, irrespective of the nature or method of payment of such 

con1pen ation. 

The term "employer" as used herein includes anyone by whom 

any such employee is comr ensated or employed. 

The term "member of the Industry" 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 u ed 

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

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

The term "Code Authority" as used herein means the body constituted by Article VI, Sections 1 and 2. 

Population for the purpose of this Code shall be determined by 

reference to the 1930 Federal Census. 

ARTICLE III-HOURS 

1. No office employee, repair man, engineer, coal pas er, Dlectrician, 

or cleaner shall be permitted to work in excess of forty ( 40) hours 

per week averaged over a consecutive eight-week period and in no 

event in excess of forty-eight ( 48) hours in any one week, provided 

(489) 
490 

that any such employee, with the exception of an office employee, 

shall be paid at one and one third times the normal rate for any 

time worked in excess of f arty ( 40) hours in any one week. 

2. No watchman shall be permitted to work in excess of fifty-six 

( 56) hours per week averaged over a two weeks' period and in no 

event shall be permitted to work in excess of six days in any sevenday period. 

3. No fireman shall be permitted to work in excess of forty-two 

( 42) hours in any one week. 

4. No other employee, except employees engaged in a managerial 

capacity, receiving at least thirty-five ($35.00) dollars a week and 

outside salesmen shall be permitted to work in excess of forty ( 40) 

hours in any one week or ten (10) hours in any twenty-four-hour 

period. 

5. The maximum hours fixed in the foregoing section shall not 

apply to any employee on emergency maintenance or emergency 

repair work involving breakdowns or protection of life or property, but in any such special case at least one and one third times 

his normal rate shall be paid for hours worked in excess of the 

maximum hours herein provided. 

6. No employee shall be permitted to work more than twenty-four 

(24) days in any twenty-eight (28) day period. 

7. In th~ event of an emergency due to war, epidemic, catastrophe, 

or Act of God wherein the public health is threatened, the stipulation regarding maximum hours of employment hall be t emporarily 

suspended, and such suspension shall be forthwith reported to the 

Administrator. 

AnTrcLE IV-vv AGEs 

1. No office employee shall be paid at less than the r:,te of fifteen 

($15.00) dollars per week in any City of over 500,000 population, 

or in the immediate trade area of such City; not less than fourteen 

dollars and fifty cents ($14.50) per week in any City of between 

250,000 and 500,000 population, or in the immediate trade area of 

such City; nor less than fourteen ($14.00) dollars per week in any 

City of less than 250,000 populat,ion, or in the immediate trade 

area of such City. 

2. No other employee shall be paid at less than the rate of thirtytwo and one half cents (321⁄2¢) per hour, except that a learner during a period of six weeks may be paid a rate of not less than 

eighty ( 80% ) percent of the foregoing minimum rrr,tB provided 

however, that such classification of learners shall not e:\ccecl five 

( 5% ) percent of the total number of employees of any employer. 

No employee shall be classed as a learner who has wo:tked for any 

employer in the Industry a total of eight (8) weeks Vfithin th 

preceding two (2) years. 

3. This Article establishe a minimum rate of pay which hall 

a.pply irrespective of whether an employee is actually ompen ate 1 

on a time-rate, piecework, or other ba is. 

4. Rates of pay in excess of the minimum e tablished by thi Co le 

shall be adju ted so as to preserve quitable differentials bet-ween the 

various occupations in the Industry. A definite plan for the adju. tment of those wages above the minimum he~in pres ribed . ·hall be 
491 

presented to the Administrator £or his approval within thirty (30) 

days o:f the effective date of this Code. 

5. Female employees performing the same work under substantially the sa1ne conditions as male employees shall receive the same 

rates of pay as male employees. 

6. A person whose earning capacity is limited because o:f age or 

physical or mental handicap may be employed on special work at 

a wage below the minimum established by this Code if the employer 

obtains from the State Authority designated by the United States 

Department of Labor a certificate authorizing his employment at 

such wages and for such hours as shall be statecl in the certificate. 

Each employer shall file with the Code Authority a list of all such 

persons employed by him. 

7. No employee shall be dismissed by reason of making a complaint or giving evidence with respect to a violation of this Code. 

ARTICLE V-GENERAL LABOR Pnovr IONS 

1. 0 hild Labo1· Provision.-N o person under sixteen ( 16) years of 

age shall be employed in the Industry, nor anyone under eighteen 

(18) years of age at operations or occupations hazardous in nature 

or detrimental to health. The Code Authority shall submit to the 

Ad1ninistrator before March 1, 1934, a list of such occupations. 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 emplo.ym.ent or 

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

required age. 

2. Provisions f'rom, the A.ct.-In compliance with Section 7 (a) of 

the Act, it is provided: 

(a) That e1nployees shall have the right to organize and bargain 

collectively, through r epres-entatives of their own choosing, and shall 

be free from the interfer ence, restraint, or coercion of employers of 

labor, or their agents, in the designation of such rep resentatives or in 

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

collective bargaining or other mutual aid or prot-ection. 

(b) 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 

( c) That em.players shall comply w.ith the mRxii11um hours of 

labor, minimmn rates of pay, and other conditions of e1nployment 

approved or prescribed by the President. 

3. Reclassification of Employees.-Employers shall not reclassify 

employees or duties or occupations, or engage in any other subterfuge 

so as to defeat the purposes of the Act or of this Code. 

4. Stmndanls for Safety and H ealth.-Every employer shall make 

reasonable provision £or the safety and health of his employees at 

the place and durino- the hours of their employment. Standards for 

safety and health shall be submitted by the Code Authority to the 

Administrator within six (6) months after the, effective date of 

this Code. 
492 

5. State Laws.-No prov1s1ons in this Code shall supersede any 

State or Federal law which imposes 1nore stringent requirements on 

employers as to age of employees, wages, hours of work, or as to 

safety, health, sanitary or general working conditions or insurance, 

or fire protection, than under this Code. 

6. Posting.-Employers shall post in ten-point type or larger in 

conspicuous places readily accessible to the employees Articles III, 

IV, and V of this Code. 

ARTICLE VI-ORGANIZATION' POWERS, AND DUTIES OF THE CODE 

AUTHORITY 

1. Organization.-A Code Authority is hereby constituted to cooperate with the Administrator in the administration of this Code. 

2. The Code Authority shall consist of not more than five individuals or such other number as may be approved from time to time 

by the Administrator, to be selected by the Industry as hereinafter 

set forth, and of such additional members without vote as the Administrator, in his discretion, may appoint to represent such groups or 

interests or such governmental agencies as he may designate. 

The Code Authority members to be selected by the Industry shall 

be elected as follows : 

Any member of the Industry who has qualified as provided in 

Section 5 of this Article shall be entitled to one vote in the nomina- tion and election of the members of the Code Authority. The proponents of the Code shall arrange for such nomination and election 

within fourteen (14) days of the effective date of this Code. In 

the interim, the Code Committee of the Association of Surgical 

Dressings Manufacturers of the United States shall fulfill the functions of the Code Authority::, 

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 

e:ff ectuate 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 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 Authority. 

5. l\1embers of the Industry shall be entitled to participatB in and 

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

participate in the selection of the members thereof and to use the 

N.R.A. Insignia 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 ex-

• Sec paragraph 2 of or<ler approving this ode. 
493 

penses of administration shall be determined by the Code Authority 

subject to review by the Administrator, on the basis of volume or 

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 exercising reasonable diligence in the conduct of 

his duties hereunder nor be liable to anyone for any action or omis- sion to act under the Code, except for his o-wn willful misfea ance 

or nonfeasance. 

7. Powers and Di1,ties.-The Code Authority shall ha Ye the following duties and powers to the extent permitted by the Act: 

(a) To adopt bylaws and rules and regulations for its procedure 

and for the administration and enforcement of the Code, in acc.ord-

~nce with the powers herein granted, and to submit the smne to the 

Administrator for his approval together with true copies of any 

amendments or additions when niade thereto, minute of meetings 

when held, and such other information as to its activities as the 

Administrator may deem necessary to effect the purposes of the Act. 

(b) To obtain :from. members of the Industry for use of the Code 

Authority, the Administrator and the President, at such time and 

in such manner as may be prescribed by the Code Authority, tatistics covering number of employees, wage rates, employee earnings, hours of work, and such other data as may be required by the 

Administrator. All such individual reports and statistics shall be 

kept confidential as to members of the Indu try, including such 

members serving on the Code Authority, and only general su:rrunaries 

thereof, prepared by a confidential agent chosen by the Code Authority, rn.ay be published. 

(c) To receive complaints of violation of this Code, make inve tigations thereof, and bring to the attention of the Administrator 

recommendations and information relative to violations. 

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

proper for the carrying out of any of its activities provide l for 

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

comply with the provisions hereof. 

( 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 cooperu te 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 initiate, consider, and make re.commendations for the 

modification or amendment of this Code. 

8- If the Administrator shall determine that any action of a code 

authority or any agency thereof is unfair or unjust or contrary to 

the public interest, the Administrator may requir~ that such action. 

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

opportunity for investigation of the merits of such action and further 

consideration by such code authority or agency pending final action, 

which shall be taken only upon approval by the Administrator. 
494 111 11 11111~1!11\l[ml~ 1\11 i~ 11\ ~ffl [1 l\1111111111111 

3 1262 08727 9880 

9. General Administrative Provision.- In addition to the inforrna tion required to be nbmitted to the Code Authority a set forth 

in this Article there hall be furni heel to Government agencies such 

stati tical information as the Administrator may deem necessary 

for the purpo e recited in Section 3 (a) of the ational I ndustrial 

RecoYery Act. 

ARTICLE, II- :MomFICATIOX 

1. This Code and all the provisions thereof are expre ly made 

subject to the right of the President, in accordance with the pro- Yisions 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 

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

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

impo eel by him upon his approval thereof. 

2. Thi Code, except as to provi ions required by the Act, may 

be modified on the basi 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. 

,. RTICLE \ III- 2\IoxoroLIE 

No provision of this Code shall be so applied as to permit monop- olies or monopolistic practices, or to eliminate oppres , or di crirninate against mall enterprises. 

ARTICLE IX- PRICE I CREA ES 

Whereas the policy of the Act to increa e real purchasing power 

will be made more difficult of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price in- creases except such as may be required to meet indi idual co t should 

be delayed. But when made such increase should, so far as pos ible, 

be limited to actual additional increase in the eller' co t . 

ARTICLE X - EFFECTffE DATE 

This Code hall become effective on the second fonday after its 

approval by the President. 

Approyed Code No. 231. 

Regi, try No. 1628-06. 

0