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3 1262 08482 97 45 

Registry No. 299-35 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

COVERED CARPET PADDING 

INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

,. __ , o- ----

I / 

The Code for the Covered Carpet Padding Ifdustry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this Industry 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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

THE COVERED CARPET PADDING MANUFACTURERS ASSOCIATION 

(Il) 
SUGGESTED CODE OF FAIR COMPETITION FOR THE 

COVERED CARPET PADDING INDUSTRY 

cm> 
Digitized by the Internet Archive 

in 2011 with funding from 

University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation 

http://www.archive.org/details/proposedcodeoffa9745unit 
THE COVER•ED CARPET PADDING MANUFACTURERS ASSOCIATION 

To effectuate the policy of Title I of the National Industrial Recovery Act, during the period of the emergency, by reducing and 

relieving unemployment, improving the standards of labor, eliminating competitive practices destructive of the interests of the public, 

employees, and employers, relieving the disastrous effects of overcapacity, and otherwise rehabilitating the covered carpet padding 

industry and by increasing the consumption of indu trial and agricultural products by increasing purchasing power, and in other respects, the following provisions are e tablished as a code of fair 

competition for the covered carpet padding industry: 

I-DEFINITIO s 

The tenn "covered carpet padding industry" as used herein is 

defined to mean the manufacture of padded, quilted, paper, and/ or 

cloth covered carpet and rug linings and stair pads. The terin 

"employees " as used herein hall include all persons employed 

in the conduct of such operations. The term "productive machinery " as used herein is defined to mean carpet lining, sewing 

and quilting machines, garnetts, lappers, pickers, stitching, and bending machines, and cloth-cutting machines. The term "effective 

date " as used herein is defined to be August 28, 1933, or if this code 

shall not have been approved by the President one week pr_ior thereto, 

then the second Monday after such approval. The term " persons " 

shall include all natural persons, partnerships, associations, and 

corporations. 

II 

On and after the effective date, the minimum wage that shall be 

paid by employers in the covered carpet padding industry tc any 

of their employees, except learners during a six weeks' apprenticeship, cleaners, and outside employees shall be not less than forty 

cents per hour unless the hourly rate for the same class of work 

on July 15, 1929, was less than forty cents per hour, in which latter 

case the minimum wage shall not be less than the hourly rate on 

July 15, 1929, and in no event less than thirty cents per hour. 

III 

The amount of differences existing prior to August 15, 1933, between the wage rates paid various classes of employees (receiving 

more than the established minimum wage) shall not be decreased. 

In no event, however, shall any employer pay any employee a wage 

rate which will yield a less wage over a work week of 40 hours than 

such employee was receiving for the same class of work for the 

9115-33 (1) 
2 

longer week of 48 hours or more pre, ailing pnor to August 15, 

1933. 

It shall be a function of the Planning and Fair Practice Agency 

provided for in Article VIII of the Code to observe the operation 

of these provisions and recommend such further provisions as experience may indicate to be appropriate to effectuate their purposes. 

IV 

On and after the effective date, employers in the covered carpet 

padding industry shall not operate on a schedule of hours of labor 

for their employees-except repair-shop crews, engineers, electricians, firemen, office and supervisory staff, shipping, watching and 

outside crews, and cleaners-in excess of forty hours per week, but 

there shall be no limitation on shifts or machine-hours. 

V 

On and after the effective date, employers in the covered carpet 

padding industry shall not employ any minor under the age of 

s1 xteen years. 

VI 

With a view to keeping the President informed as to the observance or nonobservance of this Code of Fair Competition, and as to 

whether the covered carpet padding industry is taking appropriate 

steps to effectuate the declared policy of the National Industrial 

Recovery Act, each person engaged in the covered carpet padding 

industry will furnish on request duly certified reports in substance 

as follows and in such form as may hereafter be provided: 

(a) Wages and Hours of Labor.-Returns every four weeks showing actual hours worked by the various occupational groups of 

employees and minimum weekly rates of wages. 

(b) Reports of Production, Stocks, mnd Orders.-W eekly returns 

showing production in yards and bales in each of the staple classes or 

broad divisions of the industry; finished yards or bales on hand, 

both sold and unsold ; and unfilled orders stated in yards or bales. 

Rayford W. Alley, of 111 Broadway, New York, is constituted temporary secretary of the Association and the agency to collect and 

receive such reports. 

VII 

To effectuate the policies of the Act the following practices have 

been agreed upon: 

(a) The minimum hourly rate of wages herein set down shall be 

posted in easily legible form in each person's place or places of 

manufacture in a conspicuous place where it can be readily seen by 

each employee and by representatives of the Association. 

(b) All persons in the covered carpet padding industry shall 

register their productive machinery with the secretary of the Association and no additional productive machinery shall be installed by 

members of the Association unless except by the approval of the 

Board of Directors. 
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( c) The Secretary of the Association and/ or his duly authorized 

representative only with the consent of the board of directors shall 

have free access to the plants, books, and records of the members of 

the Association for the purpose of determining and reporting on the 

industry and the observance of the Code by members of the Association. 

( d) No merchandise to be shipped on consignment. 

( e) Sale of merchandise to retailers to be sold on standard terms5 / 10 or 4/ 10-60 Ex. 

(f) There shall be no rebate or any advertising allowance or con-· 

cessions of any kind, either direct or indirect, to retailers regardless 

of quantity. 

(g) SeUing below oost.-It is agreed that no manufacturer will 

sell his regular merchandise at a net price or net prices below his 

cost. 

(h) Selling below cost is unfair competition. 

(i) The Board shall appoint a supervising agency to determine a 

· mean cost for the industry. 

Mean costs may be adjusted from time to tin1e by the Board as 

conditions warrant. 

(j) Mean costs are to include all items of expense such as materials, labor, manufacturing expense, administration expense, selling 

expense, and a reasonable charge for the use of capital invested. 

(k) Mean costs so determined by the Board will be binding on all , 

covered carpet padding manufacturers. 

(1) All statistical data and reports submitted by employer under 

this code will be held confidential and to this end the Board of 

Directors shall engage an outside and independent agency to act as 

a clearing house for all such confidential information none of which 

shall be available to any member of the Board of Directors, the books 

of account and r ecords, files and other data of every employer will 

be available at all times during the regular business hours for inspection by the representative of the supervising agency to be engaged 

by the Board of Directors. 

(m) Violation by any manufacturer of any of the provisions of 

this code or of any approved rule issued thereunder is an unfair 

method of competition. 

( n) This code is not designed to promote monopolies. The provisions of this code shall not be so interpreted or administered as 

to eliminate or oppress small enterprises or to discriminate against 

them. 

( o) Filing of Specifications.-N o manufacturer shall introduce 

and offer for sale during any season any grade of merchandise 

unless the specifications for such grade have been filed by him with 

t_he Association thirty days prior to his intention of offering such 

grade to the general trade. 

(p) Oopying of Grades.-Each manufacturer agrees that he will 

not produce in an inferior grade a copy of a running line grade 

produced by any other manufacturer. 

(q) 111.I/Joicing and Marking.-Each manufacturer agrees that the 

merchandise shipped to his customers will be correctly described 

and priced on the invoices which are issued covering such merchandise. 
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( r) R eturn Jf ere hand ise.-All sales of merchandise shall be final 

and no manufacturer shall accept the return of any merchandise, 

either for exchange or credit, except where the quality of the merchandise is in question. 

(s) Definition of Wholesa.Zers.-A wholesaler is an organization 

who carries a stock of repre entative lines of any manufacturer for 

resale purposes to the retail trade only. 

(t) 001npensation for Losses.-N o manufacturer shall guarantee 

any retail or wholesale distributor against, or compensate him for 

any losses arising through the sale of the products of this industry. 

(u) Donations.-It shall be considered as unfair competition for 

any manufacturer to make any donation or contribution in the form 

of cash, credit, advertising, or other gratuitous consideration to any 

retailer. 

(v) Protection.-Each manufacturer agrees that price protection 

or stock protection will not be extended to retail dealers or wholesale distributors in the event of any decline in prices. It is agreed, 

also, that no manufacturer will sell or consign his merchandise to 

any distributor who does not conform to the above practice. 

(w) Selling at Published List Prices.-Upon the adoption of this 

Code no manufacturer shall sell any regular merchandise for less 

than his published list prices. 

(x) Wholesaler Relations.-It shall be a condition of sale on the 

part of any manufacturer to any wholesaler that the wholesaler in 

the distribution of that manufacturer's product shall strictly adhere to resale terms and prices issued to the retailer by the manufacturer whose merchandise he is selling. 

(y) All quotations of prices are to be f .o.b. the point of 

manufacture. 

VIII 

To further effectuate the policies of the Act, the covered carpet 

padding industry committee, the applicants herein, or such successor committee or committees as may hereafter be constituted by 

the action of the signers of this proposed Code, is set up to coperate 

with the Administrator as a planning and fair practice agency for 

the covered carpet padding industry. Such agency may from time 

to time present to the Administrator recommendations based on 

conditions in the industry 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, and 

in particular along the following lines : 

1. Recommendations as to the requirements by the administrator 

of such further reports from persons engaged in or proposing to 

engage in the covered carpet padding industry of statistical information and keeping of uniform accounts as may be required to 

secure the proper observance of the Code and promote the proper 

balancing of production and consnmption and the tabilization of 

the indu try and employment. 

2. Recommendations for the setting up of a ervice bureau for 

engineering, accounting, credit, and other purpo e to aid the me1nbers of the covere l carpet padding industry in meeting the conditions of the emergency and the reqnir ment of thi ode. 
5 

3. Recommendation (1) for the requirement by the Administrator of registration by persons engaged in or proposing to engage 

in the covered carpet padding industry of their productive machinery, (2) for the requirement by the Administrator that prior 

to the installation of additional productive machinery by persons 

engaged or engaging in the covered carpet padding industry, except 

for the replacement of a similar number of existing productive 

machinery to bring the operation of existing productive machinery 

into balance, such persons shall secure certificates that such installation will be consistent with effectuating the policy of the National 

Industrial Recovery Act during the per1od of the emergency, and 

(3) for the granting or withholding by the Administr.ator of such 

certificates if so required by him. 

4. Recommendations for changes in or exemptions from the provisions of this code as to the working hours of machinery which will 

tend to preserve a balance of productive activity with consumption 

requirements, so that the interests of the industry and the public may 

be properly served. 

5. Recommendations for the making of requirements by the Administrator as to practices by persons engaged in the covered carpet 

padding industry as to methods and conditions of trading, the naming and reporting of prices which may be appropriate to avoid discrimination, to promote the stabilization of the industry, to prevent 

and eliminate unfair and de tructive competitive prices and 

practices. 

6. Recommendations for regulating the disposal of distress merchandise in a way to secure the protection of the owners and to 

promote sound and stable conditions in the industry. 

7. Recommendations as to the making available to the suppliers 

of credit to those engaged in the industry of information regarding 

terms of and actual functioning of any or all of the provisions of 

the code, the conditions of the industry, and regarding the operations of any and all of the members of the industry covered by such 

code, to the end that during the period of emergency available credit 

1nay be adapted to the needs of such industry considered as a whole 

and to the needs of the small as well as the large units. 

8. Recommendations for dealing with any inequalities that may 

otherwise arise to endanger the stability of the industry and o:f production and employment. 

Such recommendations, when approved by the Administrator, 

shall have the same force and effect as any other provisions of this 

Code. 

Such agency is also set up to cooperate with the Administrator in 

making investigations as to the functioning and observance of any 

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

by any person affected, and to report the same to the Administrator. 

Such agency is also set up for the purpose of investigating and 

informing the Administrator on behalf of the covered carpet padding industry as to the importation of competitive articles into the 

United States in substantial quantities or increasing ratio to domestic production on such terms or under such conditions as to render 

ineffective or seriously to endanger the maintenance of this Code and 

as an agency for making complaint to the President on behalf of the 
6 

-covered carpet padding industry, under the prov1s10ns of the National Industrial Recovery Act, with respect thereto. 

IX 

Where the costs of executing contracts entered into in the covered 

carpet padding industry prior to the presentation to Congress 0£ the 

National Industrial Recovery Act are increased by the application 

of the provisions of that Act to the industry it is equitable and pro- motive of the purposes of the Act that appropriate adjustments of 

such contracts to reflect such increased costs be arrived at by arbitral 

proceedings or otherwise, and the Covered Carpet Industry Committee, the applicant for this Code, is constituted an agency to assist 

in effecting such adjustments. 

X 

Employers in the covered carpet-padding industry shall complv 

with the requirements of the National Industrial Recovery Act as 

follows: 

"(1) That employees shall have the right to organize and bargain 

collectively through representatives of their own 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; (2) that 

no employee and no one seeking employment shall be required as a 

condition of employment to join any company union or to refrain 

from joining, organizing, or assisting a labor organization of his own 

choosing; and (3) that employers shall comply with the maximum 

hours of labor, minimum rates of pay, and other conditions of 

employment, approved or prescribed by the President." 

XI 

This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provisions 

of Clause 10 (b) of the National Industrial Recovery Act, and from 

time to time to cancel or modify any order, approval, license, rule, 

or regulation issued under Title I of said Act, and specifically to the 

rights of the President to cancel or modify his approval of this Code 

or any conditions imposed by him upon his approval thereof. 

XII 

Such of the prov1s10ns of this Code as are not required to be 

included therein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated as changes 

in circumstances or experience may indicate. It is contemplated 

that from time to time supplementary provisions to this Code or additional Codes will be submitted for the approval of the President 

to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes 

and policies of Title I of the National Industrial Recovery Act 

consistent with the provisions hereof. 

THE COVERED CARPET PADDING MANUFACTURERS AssocrATION. 

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