lllllllllllil~ilii~IUflflll~ifllfilil~l~l~illllllllll 3 1262 08486 7943 Registry No. 282-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WOOL TRADE 

AS APPROVED ON JANUARY 16, 1934 

WE DO OUR PART 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D. . - - - - - - - - Price 5 ce nts 

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

Printing Office, :Washington, D.C., and by district offices of the Bureau of Foreign ~tnd Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT 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.C.: Chamber of Commerce Building. 

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

Cleveland, Ohio. : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, 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. 

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Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 218 

CODE OF FAm COMPETITION 

FOR THE 

WOOL TRADE 

As Approved on January 16, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

WOOL TRADE 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

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

Fair Competition for the Wool Trade, and hearings having been 

duly held thereon and the annexed report on said Code, containing 

findings with respect thereto, having been made and directed to the 

President: 

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. 

HuoH S. JOHNSON, 

Admin.tistrator for /ndw;trial Recovery. 

Approval recommended: 

A. D. '" HITESIDE, 

Division Ad1ninistrator. 

wASHINGTON, D.C., 

January 16, 1934. 

30227•----313- 1----34 (235) 
The PRESIDENT, 

The White House. 

SIR: This is the report on the Code of Fair Competition for the 

Wool Trade submitted by the Boston Wool Trade Association. The 

hearing was conducted in Washington, D.C., on October 23, 1933. 

Every person who requested an appearance was freely heard in 

accordance with statutory and regulatory requirements. The Code 

was presented by duly qualified and authorized representatives of 

the trade, representing approximately 73% of the. volume of 

business. 

DESCRIPTION OF INDUSTRY 

This Code was originally submitted by the Boston Wool Trade 

Association, a representative body of several years standing in the 

trade. This Association, however, limited its membership to firms 

having a place of business in Boston. Because of this restriction on 

membership, a new association, the National Wool Trade Association was formed which embraces an even higher percent of the trade 

than did the former association. 

The services performed by the Wool Trade are primarily those of 

merchandising and do not include producing or manufacturing processes. The Wool Trade deals directly with the growers, furnishing 

'them at shearing ti1ne with an immediate outlet for their product, 

and thereafter assuming the financial resronsibility of carrying the 

wool until it passes into the manufacturer s hands. TheW ool Trade 

is concerned with handling, financing, grading, warehousing, and 

selling of this product from grower to manufacturer. The business 

is, by nature, seasonal. Its peak occurs at the time of the spring wool 

clip when the heavy weights of wool from the West cause a high 

peak of employment of temporary labor. 

The Wool Trade is already identified with carrying out the purposes of the Fa.rm Credit Administration and is, in certain instances, 

subject to regulation by that branch of the Government. Through 

loans made to wool growers by farm relief and loan agencies, the 

Farm Credit Administration has become directly or i.ndirectly interested in a · substantial proportion of the wool clip of the United 

States. ·This wool is being handled on consignment by members of 

the Wool Trade who have thereby been subjected to regulation not 

only with respect to the consigned wool which they are handling for 

the farm relief agencies but also with respect to the manner in which 

they handle wool which they themselves own or hold on consignment 

from others. 

Although the Wool Trade, as such, conducts no actual manufacturing operations, it deals in wool in processed forms. Thus, it 

deals in the byproducts of wool manufacturing, such as wool wastes 

and noils, which constitute the raw stock used by certain woolen 

manufacturers. It also deals in scoured and carbonized wool, garnetted stock and similar merchandi e which are the direct products 

of processes designed to prepare it for subsequent manufacturing 

(236) 
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operations. Although these preparatory processes are not actually 

conducted by the Wool Trade, they are frequently done for them on 

commission by manufacturers, the purpose being to convert the commodity into merchantable form. The grading and sorting of wool, 

processes which involve no machinery but prepare the wool for sale, 

are functions of the Wool Trade as merchants. 

The Wool Trade, as defined in tllis Code, does not include top makers who, although owning no machinery, buy wool, sort it and cause 

it to be scoured and combed in proper blends by the commission 

wool comber. As a group, at their request, they have been treated 

in this Code as manufacturers rather than merchants. 

LABOR PROVISIONS 

The Industry proposes to pay a minimum wage of 371!2 cents per 

hour. Hours of labor are limited to 40 hours per week, except for 

watchmen, outside salesmen, and buyers and managerial workers receiving more than $35.00 per week. Clerical and office employees 

may work an average of 40 hours per week during the six months, 

beginning May 15, but not more than 48 hours in any one week. The 

code provides that in order to prevent or relieve transportation congestion during the peak of the season, employees engaged in this 

activity may work in excess of the maximum hours and shall be paid 

time and one third for overtime. 

The Code :provides also that employers of not more than five persons located m towns of less than 2,500 population are not included 

within the minimum wage and maximum hour provisions. This 

is to accommodate those persons, such as farmers and small store 

owners, mainly in the wool-growing sections of the West, who buy 

and sell wool incidentally to other occupations during the shearing 

season. 

ADMINISTRATION 

The provisions of the Administration of this Code are capable of 

providing the N.R.A. and the Wool Trade with sufficient data to 

recommend any modifications or amendments that may be indicated 

by experience. It is also provided that fair trade practices shall 

be submitted within sixty days from the effective date, and that these 

fair trade practices are to be mutually agreed upon by the members 

of this trade and the National Association of Wool Manufacturers. 

CONCLUSION 

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 proceedings 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 inducing and maintaining united action of labor and 
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management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Trade normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is a trade association truly representative of the aforesaid 

Trade; 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 of Fair Competition for the Wool 

Trade has been approved. 

Respectfully, 

JANUARY 16, 1934. 

HuaH S. JoHNSoN, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

WOOL TRADE 

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 

Fair Competition for the ' Vool Trade, and shall be the standard of 

fair competition for such trade and shall be binding upon every 

member thereof. 

ARTICLE II-DEFINITIONS 

1. The term " wool trade " as used herein shall mean the business 

of buying, selling, or dealing in any of the following; commodities: 

(a) wool, shorn or pulled; (b) new wool waste; (c) noils and all 

other by-products of wool manufacturing; (d) the products of wool 

resulting from preparatory processes, which include the products of 

the processes of grading, sorting, dusting, picking, carding, garnetting, carbonizing, and scouring; it is provided, however, that manufacturers of wool textiles operating under another Code of Fair 

Competition, who buy direct for their own purposes and not for resale, shall be governed as to such share of their business as is included within the above definition of wool trade by the provisions of 

such other code and shall be excluded from all the provisions of this 

Code except such provisions relating to fair trade practices as may 

subsequently be mutually agreed upon by the National Wool Trade 

Association and the National Association of Wool Manufacturers and 

approved by the Administrator. 

2. The term "wool" as used herein shall include wool and the 

hair of the angora goat, cashmere goat, alpaca and like animals. 

3. The term "employee" as used herein includes anyone engaged 

in the trade in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such 

compensation. 

4. The term "employer" ~ used herein includes anyone by whom 

any such emplo~ee is compensated or employed. 

5. The term 'member of the trade" as used herein includes anyone engaged in the trade as above defined, either as an employer or 

on his own behalf. 

6. The terms "Pre ident ", "Act", and "Administrator" as used 

herein shall mean respectively the President of the United States, 

(239) 
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Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

7. Population for the purpose of this Code shall be determined 

by reference to the 1930 Federal Census. 

ARTICLE III-EXEMPTION OF TowNs UNDER 2,500 PoPULATION 

1. Employers who do not employ more than five (5) persons and 

who are located in towns of less than 2,500 population (according to 

the 1930 Federal Census) which are not in the immediate trade area 

of a city of larger population shall not be included within the 

provisions of Articles IV and V of this Code. 

2. The" 5 persons" refer to any person working in the establishment except a proprietor, provided such person works at least 24 

hours per week. 

3. A town of less than 2,500 population is deemed to be in the 

immediate trade area of a larger city in either of the following 

instances: 

(a) If it is in the Metropolitan District of a city over 100,000 

population as such Metropolitan Districts are defined in the Federal 

Census of 1930, or 

(b) If its boundaries touch the boundaries of a city or town with 

a population over 2,500. 

ARTICLE IV-HOURS 

1. No employee shall be permitted to work in excess of 40 hours in 

any one week except watchmen, outside salesmen, and buyers, and employees engaged in a managerial or executive capacity who receive 

more than $35 per week; provided, however, that clerical and office 

employees may be permitted to work 40 hours per week averaged over 

the six months, each year, beginning Ma.y 15, but in no event in excess 

of 48 hours in any one week, and further provided that watchmen 

shall not work more than 6 days per week. 

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

apply to any employee engaged in emergency work necessary to 

prevent or relieve transportation congestion, but in any such special 

case at least one and one third times his normal rate shall be paid 

for all hours in excess of the maximum prescribed herein. Emergency hours worked shall be reported monthly to the Code Authority. 

ARTICLE V-W AGES 

1. No employee shall be paid at less than the rate of 371h cents per 

hour. 

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

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

other basis. 

3. Wage differentials existing prior to June 16, 1933, shall be maintained for all employees receiving more than the minimum herein 

prescribed, notwithstanding that the hours worked ma.y be hereby 

reduced. All employers shall report to the Code Authority within 

one month after the effective date of this code such readjustment of 

pay schedules. 
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ARTICLE VI-GENERAL LABOR PROVISIONS 

1. No person under 16 years of age shall be employed in the trade: 

In any State an employer shall be deemed to h~ve complied with 

this provision if he shall have on file a certificate or permit duly 

issued by the authority in such State empowered to is ue employment 

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

required age. · 

2. Employees shaN 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. 

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, and 

4. Employers shall comply with the maximum hours o:f labor, 

.minimum rates of pay, and other conditions 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 requirements on 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 reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the 

Act. 

7. Each employer shall post in conspicuous places full copies of 

this code. 

ARTICLE VII-AoMINISTRA TION 

1. To further effectuate the policies of the Act, a Code Authority 

is hereby set up to cooperate with the Administrator in the administration of this Code. Such Code Authority shall consist of not less 

than 5 or more than 8 members, 5 of whom shall be representatives 

of the trade elected by a fair method of selection to be approved by 

the Administrator, and 3 of whom without vote may be appointed 

by the Administrator to serve without expense to the trade. Such 

agency may present to the Administrator reconm1endations based on 

conditions in the trade as they may develop which will tend to effectuate the operation of the provisions of th1s Code and the policies of 

the Act. Such recommendations, when approved by the Administrator, after such public h aring as he may deem necessary shall have 

the arne force and effect as any other provisions of this Code. 

2. Such Code Authority shall cooperate with the Administrn,tor 

in making investigations as to the functioning and observance of 

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

any person affected, and shall report the arne to the Administrator. 

3. For the purpose of supplying the Administrator with the requisite data as to the ob ervance and ffectivcne of this Code, and 

as to whether the ~rool Trade is takin appropriate t ps to enable 

it to adju t its hours of labor and wage in accordance with the de-
242 

clared policy of the Act, each employer shall furnish regular reports 

as hereinafter provided. The Code Authority is hereby constituted 

the agency to provide for the collection and receipt of such reports 

and for the forwarding of the compiled results of such reports to 

the Administrator, and to provide for the holding of such reports 

themselves in confidence. Such reports shall be in such form, shall 

be furnished at such intervals, and shall contain such information 

relative to the purposes of this Code as shall be prescribed by the 

Administrator or by the Code Authority with the approval of the 

Administrator; including particularly information with respect to 

employment, hours, wages, and wage-rates, and with respect to stocks 

on hand of wool and of the other commodities specified in Article II, 

Section 1, hereof. 

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

Code Authority, there shall be furnished to Government agencies 

such statistical information as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act. 

5. 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, 

bylaws, regulations and any amendments when ma.de thereto, together with such other information as to membership, organization, 

and activities as the Administrator may deein necessary to effectuate 

the purposes of the Act. 

ARTICLE VIII-MoDIFICATION 

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

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time to 

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

issued under Title I of said Act and specifically, but without limitation, to the right of the President to cancel or modify his approval 

of this Code or any conditions imposed by him upon his approval 

thereof. 

2. Such of the provisions of this Code as are not required to be 

included therein by the Act may, with the approval of the Administrator, be modified or eliminated in such manner as may be indicated 

by the needs of the public, by changes in circumstances, or by experience; all the provisions of this Code, unless so modified or eliminated, shall remain in effect until the expiration date. of Title I of 

the Act. 

ARTICLE IX-MONOPOLIES 

No provision 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-FAIR TRADE PRACTICES 

Within 60 days after the effective date of this Code, the Code Authority, after consultation with the trade, shall submit to the Ad-
243 

ministrator recommendations for the adoption of fair trade practices, and such recommendations shall, upon the approval by the 

Administrator, become effective as part of this Code. 

ARTICLE XI-EFFECTIVE DATE 

This Code shall become effective on the second Monday aft~r date . 

.Approved Code No. 213. 

Registry No. 282-01. 

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