Approved Code No. 143-Amendment No. 1 Registry No. 232-1-04 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

WOOL FELT 

MANUFACTURING INDUSTRY 

AS APPROVED ON NOVEMBER 30, 1934 

WE DO OUR PART 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

ForsalebytheSuperintendentofDocumcnts,\Vashington,D.C. - •• - • - ••• Price5centB 

✓ 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D. 0., and by district offices of the Bureau ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ARTI\:IENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N. Y.: Chamber of Commerce Building. 

Charleston, S. 0.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, l\fich.: 801 First National Bank Building. 

H ouston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

J acksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. New York, N. Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, P a .: Chamber of Commerce Building. 

Portland, Oreg. : 215 New P ost Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
, 

Approved Code No. 143-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

WOOL FELT MANUFACTURING INDUSTRY 

As Approved on November 30, 1934 

ORDER 

APPROVING AMENDMENT OF CoDE OF FAIR Cm\IPETITION FOR TIIE 

WooL FELT MANUFACTURING 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 o:f an amendment to a Code o:f Fair Competition for the vVool Felt Manu:fac1·uring Industry, and hearings having been duly held thereon and 

the annexed report on said amendment, containing findings with 

respect thereto, having been made and directed to the President: 

NO,v, THEREFORE, on behalf o:f the President of the United 

States, the National Industrial Recovery Board, pursuant to 

authority vested in it by Executive orders o:f the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise, 

does hereby incorporate, by reference, said annexed report and does 

find that said amendment and the Code as constituted a:fter being 

amended comply in all respects with the pertinent frovisions and 

will promote the policy and purposes of said Title o · said Act, and 

does hereby order that said amendment be and it is hereby approved, 

and that the previous approval o:f said Code is hereby amended to 

include an approval o:f said Code in its entirety as amended. 

NATION AL I NDUSTRIAL R ECOVERY BOARD, 

By ,v. A. H ARRIMAN, Administrative Officer. 

Approval r ecommended : 

PRENTISS L. CooNLEY, 

Acting Division Administrator. 

,vAsHI GTON, D. c., 

N ovem,ber 30, 1934. 

100034°-13-5-112-3-! (1) 
REPORT TO THE PRESIDENT 

The PREsrnE:i.~T, 

The 1V hite House. 

Srn: This is a report on a public hearing on an amendment to the 

Code of Fair Competition for the Wool Felt Manufacturing Industry held on Octobe1· 5, 1934, in Room 1851, Department of Commerce 

Building, vVa hington, D. C. The amendment which is attached 

was presented by duly qualified and authorized representatives of 

the Industry, complying with statutory requirements and being the 

same agency that originally submitted the Code. 

In accordance with customary procedure every person who had 

filed a request for appearance was freely heard in public and all 

statutory and regulatory requirements were complied with. 

PROVISIONS OF THE Al\IENDMENT 

The changes in Article II, Section 7, and Article XI, Section 1, 

ar 0 merely verbal alterations consisting of the ubstitution of "National Industrial Recovery Board" for "Admini. trator." 

T he addition to Article III of a new Section 5 is the standard provi, ion restricting the employment of an employee by more than one 

em1Joyer in exce~s of the maximum hours provided. 

The addition to Article IV of a new Sw·tion 5 is the standard provision relative to the employment of aged and handicapped workers. 

The addition to Article V of a new Section 7 requires the posting 

of copies of the Co le. 

The substitution of a new Article VI as follows: 

Section 1 defines the method of election of the Code Authority. 

Section 2 provi 1es for Administration :Members on the Code 

Authority. 

s~ction 3 provides for submission of by-laws. 

S2ction 4 provides that the Code Authority shall be truly representative of the Industry. 

Section 5 define liability of members of the Code Authority. 

S ction 6 provide for the suspension of any activities of the Code 

Authority deemed unfair or unjust. 

Section 7 defines powers and duties of the Code Authority. 

Section 8 provides for a budget and basis of assessment. 

Section 9 provide for contribution to expenses of Code Authority. 

Section 10 clefines limitations on Code Authority in expenditure of 

funds. 

Section 11 defines further powers and obligations of Code 

Authority. 

Section 12 provides for arbitration facilities. 

Section 13 provides for the maintenance of records of tran actions 

in the Industry and the furnishing of reports based on such records. 

(2) 
3 

The additions to Article VII as follows: 

Section 1 contains a verbal change, " Confidential Agency" being 

substituted for "Certified Public Accountant. ' 

Section 2 provides for the submi sion of such statistical data as 

may be nece sary for the purposes recited in S2ction 3 (a) of the Act 

and Section 1 of this Article. 

The addition to Article VIII of new S ctions as follows: 

Section 2 is the standar 1 "Commercial Bribery" cl::m e. 

Section 7 provides for and defines uniform terms of sale. 

FINDIXGS 

The D0 puty Admini trator in hi final report to the National 

Industrial Recovery Board on ai i amendment to said Code having 

found us hereinafter set forth on the basis of all the proceedings in 

this matter; 

The National Industrial Recovery Board finds that: 

(a) The amendment to said Code and the Code as amended are 

well designated to promote the policies and purposes of Title I of 

the National Industrial Recovery Act, including removal of obstruc- tions to the free flow of interstate and foreign comn10rce 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 trade groups, by inducing and maintaining united action of labor and management under adequate 

governmental sanction 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 the standards of labor and by 

otherwise rehabilitating industry; 

(b) The Code as amended 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; 

( c) The Code empowers the Code Authority to present the aforesaid amendment on behalf of the Industry as a whole. 

(cl) The amendment and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices-

(.e) The amendment and the Code as amended are not designed to 

and will not eliminllte 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 

amendment. 

For the e reasons this amendment has been approv.ed. 

For the National Industrial Recovery Board: 

NOVEMBER 30, 1934:. 

w. A. HARRIMAN, 

Administrative Officer. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE WOOL FELT MANUFACTURING INDUSTRY 

ARTICLE II 

Section 7, Line 1 : Delete "Administrator" and insert in lieu 

thereof " Board ". 

Section 7, line 3 and 4: Delete "Administr ator of Title I of said 

Act " and insert in lieu thereof " National Industrial Recovery 

Board". ARTICLE I II 

Add new Section 5 as follows: 

SECTION 5. No employer shall knowingly permit any e1nployee to 

work for any time which, when added to the time spent at work for 

another employer or employers, exceeds the maximum permitted 

herein. ARTICLE IV 

Adel new Section 5 as follows : 

SECTION 5. A person whose earning capn,city is limited because of 

age, or physical or mental handicap or other infirmity, may be employed on light 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 'iYages and for such hours as shall 

be stated in the certificate. Each employer shall file monthly with 

the Code Authority a list of all such persons employed by him, show- ing the wages paid to, and maximum hours of work for such 

empioyees. 

ARTICLE V 

Delete Section 7 of Article V and add a new Section 7 as follows : 

SECTION 7. All emi)loyers shall post and keep posted copies of this 

Code in conspicuous places accessible to all employees. Every mem- ber of the Industry shall comply with all rules and regulations rela- tive to the posting of provisions of Code of F air Competitio:p. which 

may from time to time be prescribed by the Board. 

ARTICLE VI 

Amend Article VI by deleting the present Article and adding a 

new Article VI as follows : 

ARTICLE VI- ADMINISTRATION 

SECTION 1. A Code Authority is hereby established, consisting of 

five (5) members and five (5) alternate,s therefor, each alternate 

having the right to be present at all meetings of the Code Authority 

(4) 
5 

but having the right to vote thereat only in the absence of said alternate's member, to be selected in the following manner: 

A meeting of all members of the industry qualified to vote in the 

election of the Code Authority shall be held annually, upon ten (10) 

days' written notice, on such date as the Code Authority may determine. Each qualifie 1 member shall certify to such meeting the 

average number of industry employees (including every person engage l in the industry in the nited State, receiving compensation ,from ~uch member) on such member's payroll during such period o-f 

time within the same calendar year ( called the " census period ") as 

the Code Authority may determine. At such meeting each qualified 

member, voting in person or by proxy, shall have one vote for each 

industry employee so certified by said member, and the following 

procedure shall govern: 

(a) the smallest number of concerns, pre.sent or duly represent ea 

by proxy at the meeting, which during the census period employed 

at least 66%% of the aggregate industry employees employed during said census period by all concerns present or duly represented by 

proxy at the meeting, shall be entitled to elect three (3) members of 

the Code Authority and three ( 3) alternates therefor; 

(b) all other concerns, present or duly repre.sented by proxy at 

the meeting, shall be entitled to elect two (2) members of the Code 

Authority and two (2) alternates therefor; 

( c) election to the Code Authority shall be determined by a 

plurality of the votes cast in any ballot; provided, however, that at 

least 40% of the votes cast in a given ballot shall be required to 

elect. 

SECTION 2. In addition to membership as above provided, there 

may be up to three (3) members, without vote, to be known as Administration ~:!embers, to be appointed by the Board to serve for 

,such terms as it may specify. 

SECTION 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 Board 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 Board may deem necessary to effectuate the 

purposes of the Act. SECTION 4. In order that the Code Authority shall at all times be 

truly representative of the industry and in other r espects comply 

with the provisions of the Act, the Board may prescribe such hearings as it may deem proper; and thereafter if it 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 of the Code Authority. 

SEC'IIO~ 5. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

shall any mernber 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 here-
6 

under be liable to anyone for any action or omission to act under 

this Code, except for his own wilful malfeasance or non:feasance. 

SECTION 6. If the Board shall at any time determine that any 

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

or unjust or contrary to the public interest, the Board may require 

that such action be suspended 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 

not be effective unless the Board approves or unless it shall fail 

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

proceed with such action in its original or modified form. SECTION 7. Subject to such rules and regulations as may be issued 

by the Board, the Code Authority shall have the following powers 

and duties, in addition to those authorized by other provisions of 

this Code: 

(a) To insure the execution of the provisions of this Code and to 

provide for the compliance of the industry with the provisions of 

the Act. · 

(b) To adopt by-laws and rules and regulations for its procedure. 

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

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

herein, 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 tim0 s be subject to and 

comply with the provisions hereof. 

SECTION 8. It being found necessary in order to support the administration of this Code and to maintain the standards of fair 

competition established here.under and to effectuate the policy of 

the Act, the Code Authority is authorized: 

(a) to incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purpose of the Code. 

(b) To submit to the Board for its approval, subject to such 

notice and opportunity to be heard as it may deem necessary, (1) 

an itemized budget of it estimated expenses for the foregoing purposes, and (2) an equitable basis, computed with respect to labor 

employed, upon which the funds necessary to support such budget 

shall be contributed by members of the industry. 

( c) After such budget and basis of contribution have been approved by the Board, to determine and obtain equitable contrjbution 

as above set forth by all members of the industry, and to that end 

if necessary, to institute legal proceedings therefor in its own name~ 

SECTION 9. Each member of the inclnstry shall pay his or its 

equitable contribution to the expenses of the maintenance of the Code 

Authority, determined as hereinabove provide 1, and subject to rules 

and regulations pertaining thereto issued by the Board. · Only members of the industry complyino- with the Code and contributing to 

the expenses of its administration as hereinabove provided. unless 

duly exempted from making such contributions, shall be entitled to 

participate in the selection of members of the Code Authority or to 

receive the benefits of any of its voluntary activities or to n1.ake use 
7 

of any emblem or insignia of the National Recovery Administration. 

SECTION 10. The Code Authority shall neither incur nor pay any 

obligation substantially in excess of the amount thereof as estimated 

in its approved budget, and shall in no event exc,eed the total amount 

contained in the approved budget, except upon approval of the 

Board; and no subsequent budget shall contain any deficiency item 

for expenditures in excess of prior budget estimates except those 

which the Board shall have so approYed. 

SECTION 11. The Code Authority shall recommend to the Board 

any action or mea ures deemed advisable, including further fair 

trade practice provisions to govern members of the industry in their 

~elations with each other or with other industries; measure~ for industrial planning, and stabilization of employment; and including 

amendments of this Code which shall become cffe '"'tivc as part h reof 

upon approval by the Board after such notic and hearing as it may 

specify. 

SECTION 12. The Code Authority shall provide appropriate facilities for arbitration, and subject to the approval of the Board, to 

prescribe rules of procedure, and rules to efff'ct omplian with 

a wards and determinations. 

SECTION 13. Each member of the indu try shall keep accurate and 

complete record of its transactions in the in lustry whenever P.uch 

records may be required under any of the proYi ·ion of this Code, 

and shall furnish accurate reports based upon such recor l concern- ing any of such activities when required by the Code Authority or 

1-he Board. If the Code Authority or the Boar l shall determine 

that substantial doubt exists as to the accuracy of any such report, 

so much of the pertinent books, records and papers of such member 

as may be required for the verification of such report may be examined by an impartial agency, agreed upon between the Code Authority and such member, or, in the absence of agreement, appointed by 

the Board. In no case shall the facts disclosed by such examina- tion be made available in identifiable form to any competitor, whether 

on the Code Authority or otherwise, or be given any other publication, except such as may be required for the proper admini tration 

or enforcement of the provisions of this Code. 

ARTICLE VII 

Amend Section 1 of Article VII by deleting "certified public 

accountants" in line 5 and inserting in lieu thereof "confidential 

agency". 

Amend Section 2 of Article VII by deleting the pre ent S ction 

and adding a new Section 2 as follows: 

SECTION 2. The members of the industry shall furnish such information and reports as may be required for the aclmini tration of 

the Code. In addition to information and reports required to be 

furni ·he 1 under Section 1 of this Article and to any reports which 

the members of the industry may now be under obliO"ation to furni h 

to any governmental agency, the members of the indu try hull furnish such stati tical information as the Board may deem nece~ ary 

for the purpos recited in Section 3 (a) of the Act to such F ederal 

and State Agenci s as it may designate. The stati tical information 
8 

so furni hed by any individual member of the industry shall not be 

disclosed to any other member of the industry or to any party other 

than the agency designated as aforesaid by the Board. 

ARTICLE VIII 

AnLncl Article VIII by deleting Section 2 and adding a new 

Section 2 as fallows: 

SE TIO T 2. o memb 0 r of the indu try shall give, p rmit to be 

given, or directly offer to give, anything of value for the purpos2 

of inilnencing or r ewarding the action of any employee, agent, O!" 

representative of another in r elation to the business of the employer 

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

party, 1Yithout the knowledge of uch employer, principal or party. 

This provision hall not be construed to prohibit free and general 

distribution of article commonly used for advertising except so far 

as such articles are actually used for commercial brib 0 ry as hereinabove defined. 

Amend Article VIII by adding a new Section 7 as follows : 

SECTION 7. No member of the industry shall sell or offer to sell 

any product of the industry, or adjust the sales price or ales terms 

thereof, on terms more favorable to the purchaser than tlrn 

following: 

(a) in the case of all sales other than under (b) below, either 

(i) 2% ca h discount in ten (10) clays or net thirty (30) days; 

or 

(ii) 2% ten (10) days, net thirty (30) days, E. 0. M.; with 

no postdating except that hipments made on or after the 25th 

day of the month may be dated as of the fir t of the following 

month and except as provided in ( c) below. 

(b) in the case of sales to automotive, aviation, and farm implement , industries; 2% cash discount the 25th proximo, net thereafter, with no postdating ( except as provided .in ( c) below). · 

( c) on direct mill shipments to customers from points west of St. 

Louis (:Missouri) to St. Louis and points east, and on direct mill 

shipment from points east of St. Louis to St. Louis and points 

west, R. 0. G. (Receipt of Goods) dating may be given. 

( d) any trade acceptance, or note given by a purchaser to liquidate 

his account with a member of the indu try shall be in principal 

amount not less than the balance of said account then due, without 

allowance of cash discount, and shall bear interest at the rate of 6% 

per annum for the term of the instrument. 

ARTICLE XI 

Amend Section 1 of Article XI by deleting "Administrator" 1n 

the sixth line and substituting in lieu thereof " Board." 

Appro,ecl Code No. 143-- \.mendment No. 1. 

Registry No. -3'.?-1-04. 

0