UNIVERSITY OF FLO RIDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II llll llllll 111 111 11 111111111 

3 1262 08483 0149 

Registry No. 258-02 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

HAT LINING INDUSTRY 

AS SUBMITTED ON SEPTEMBER 5, 1933 

WE DO OUR PART 

J • I 

The Code for the Hat Lining Industry 

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 saleLby the Superintendent of Documents, Washington, D.C. • - • - - • • - Price 5 cents 

✓ 
SUBMITTED BY 

NATIONAL HAT LINING ASSOCIATION 
CODE OF FAIR COMPETITION FOR THE HAT LINING 

INDUSTRY 

ADOPTED BY THE NATIONAL HAT LINING ASSOCIATION 

For the purpose of effectuating the policy of the United States 

Government as declared in Title I, Section 1, of The National Industrial Recovery Act, the National Hat Lining Association, hereafter 

termed the "Association", adopts the following as a Code of Fair 

Competition to govern the industry for the duration of such Act. 

ARTICLE I-APPLICATION O .F THE CODE 

SECTION 1. This Code shall apply to all manufacturers of hat linings or sweat bands for ladies' hats. 

SEc. 2. Definitions.- The term "hat lining industry" includes 

manufacturers of hat linings for ladies' hats and sweat bands for 

ladies' hats. The term "person" shall include a firm or corporation. 

The term "manufacturer" means a person actually engaged in manufacture, having a plant-or factory, maintaining an office, keeping 

regular books of account, operating machines in the manufacture of 

hat linings or sweat bands, and employing one or more operators. 

ARTICLE II-LABOR REGULATIONS 

SECTION 1. Employees in the said industry shall have the right to 

organize and bargain collectively through representatives of their own 

choosing, and shall be free from 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. 

SEc. 2. No employee of said industry and no one seeking employment therein 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. 

SEc. 3. Employers of labor in said industry shall comply with the 

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

of employment, approved or prescribed by the President of the United 

States. 

SEc. 4. Annexed hereto as Schedule 1, and made a part of this Code, 

is a Schedule of maximum hours of labor, minimum rates of wages, 

and other matters affecting conditions of employment. 

SEc. 5. The members of the Association shall supply to the 

Executive Committee and to the Industrial Code Committee of the 

Association all data required by such Committees for the purpo e of 

determining whether the Schedule referred to in S ction 4 of thi 

Article is adhered to and whether any amendments or additi·on 

9972-33 (1) 
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thereto should be made in order to effectuate the declared policy of 

the National Industrial Recovery Act. Reports containing such 

data shall be given from time to time as required by said Committees 

or either of them and such information shall be furnished under oath 

or certified by a certified public accountant. Every member shall 

give the Association access to his books for the purpose of verifying 

such statements. 

SEc. 6. Subject to such rules, regulations, and restrictions in 

regard thereto as may be made by the President of the United States, 

each person not a member of this Association engaged in the hat-lining 

industry shall furnish to the Executive Committee and the Industrial 

Code Committee of the Association, whose duty it shall be to collect 

the same, all data required by such Committee for the purpose of 

determining whether the Schedule referred to in Section 4 of this 

Article is adhered to and whether any amendments or additions 

thereto should be made in order to effectuate the declared policy of the 

National Industrial Recovery Act. Reports containing such data 

shall be given from time to time as required by said Committees or 

either of them and such information shall be furnished under oath or 

certified by a certified public accountant. Such person shall give the 

Association access to his books for the purpose of verifying such statements. 

SEc. 7. Persons engaged in the industry who employ union labor 

will, by a representative committee appointed by the Association, 

confer and negotiate with the duly appointed local representatives 

of the labor unions as to wages, hours, and conditions of labor, and 

shall not depart from the rules and/or conditions laid down in the 

agreement arrived at by such representatives and currently in force, 

in any manner tending to give them an advantage in respect to costs 

of work over competitors who may strictly adhere to such agreements. 

SEc. 8. No person engaged in the industry shall seek or accept an 

individual or special agreement with organized labor, and agreements 

entered into by the Association referred to in Section 7 of this Article 

shall be so written as to abrogate any individual agreements currently 

in force. · 

SEc. 9. Upon the adoption and approval of this Code each manufacturer must affix on the wall of his factory a copy of the minimum 

prices for labor fixed by this Code. 

ARTICLE III-INDUSTRY REGULATIONS 

SECTION 1. Prices of all products manufactured and sold by the 

industry shall generally be such as to make a fair net return to the 

manufacturer. 

SEc. 2. No such products shall be so]d below cost, and each manufacturer shall determine and certify the cost of manufacture to the 

Association. The Association through Committees or agents appointed by the board of directors will proceed to gath~r all relevant 

information as to the cost of manufacture and employ such agents 

as may be necessary in order to determine such costs. 

Provided, however, job or distress products or products which 

must be converted into cash to meet immediate needs may be sold 

at _such prices as are necessary to move such products. However, 

such sales must first be reported to the Executive Committee of the 

Association and may be n1ade only upon its written approval. 
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SEc. 3. The Association may set and vary from time to time the 

minimum prices to be charged for products manufactured by the 

industry in any district or locality, which shall be based upon cost of 

production and market and competitive-marketing factors, but which 

prices shall not be more than reasonable. 

SEc. 4. The following are declared to be unfair trade practices in 

the industrv: 

(a) To allow discounts in excess of seven percent (7%) ten (10) 

days E.O.M. and six percent (6%) per annum for anticipation. No 

discounts shall be allowed after the expiration of ten (10) days E .O.M. 

(b) To permit a purchaser to whom delivery has been made in 

accordance with contract of sale to return merchandise or exchange 

colors or make any other exchange of merchandise, more than five (5) 

days after such delivery. 

(c) To effect or conceal price discrimination by the payment or 

allowance of secret rebates, refunds, credits, or unearned discounts, 

whether in the form of money or gifts, the extending of special privileges, including discriminatory allowances for service, not extended 

to all purchasers under like terms and conditions, false invoicing or 

billing or otherwise. 

(d) Commercial bribery, giving gratuities in any form, whether 

directly or indirectly to customer's employees or obtaining sales by 

giving commissions or rewards in any form to employees of purchasers or distributors or otherwise inducing the placing of orders 

through lavish entertainment or indirect gifts or other form of commercial bribery. 

(e) To sell on consignment or with any guaranty against decline 

in prices. Provided, however, samples may be shipped on consignment. 

(f) Substitution of material differing in any respect from the 

material ordered without obtaining the approval of the buyer, or the 

use of raw material in any manufacturing process inferior in quality 

to the raw material specified in an order, or if not specified, inferior to 

the quality customarily used for similar orders. 

(g) Attacking a competitor as to his financial standing or personal 

integrity or his ability to serve the trade. 

(h) Solicitation of an order with knowledge that a signed order 

h-as been previously given to or a contract made with a competitor 

with intent to cause cancellation of the previous order or contract. 

(i) Pre-dating contracts or wilfully misrepresenting the date of a 

contract. 

(j) Misrepresentation as to work or quality of work or of materials, 

misleading advertising. 

SEc. 6. No salesmen of linings shall be permitted to sell in New 

York City any other product except the products or merchandise of 

the manufacturer whom he represents. 

SEc. 7. It is recognized that overproduction is injurious to the 

industry and to the nation and agreements to limit production to the 

reasonable demand may be made with the approval of the Association. Such production limitation shall be on an equitable basis 

allotted by the Association and production in excess thereof by any 

producer after having received a production allotment from the 

Association is an unfair method of competition. 

SEc. 8. Group selling and the use of an exclusive agency in specified 

territory by members of the Association are approved. 
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SEC. 9. Division of consuming territory into market areas, providing 

for plants best equipped to serve particular markets to concentrate 

sales efforts in such districts, may be made by the Association from 

time to time. 

SEc. 10. The Association shall adopt uniform grading of products 

so far as practicable. 

ARTICLE IV-GENERAL 

SECTION 1. No provision in this Code shall be interpreted or applied 

in such manner as to-

( a) promote monopolies, 

(b) permit or encourage unfair competition, 

(c) eliminate or oppress small enterprises, 

(d) discriminate against small enterprises. 

SEc. 2. This Code or any of its provisions may be cancelled or 

modified, and any approved rule issued thereunder shall be ineffective 

to the extent necessary to conform to any action by the President of 

the United States under Title I of the National Industrial Recovery 

Act. 

SEC. 3. The Association may from time to time, subject to the 

approval of the President of the United States, amend this Code and 

promulgate rules hereunder. . SEc. 4. Violation by any member of the industry of any provisions 

of this Code or any approved rule issued hereunder is an unfair method 

of competition. 

SEc. 5. The Code shall be in effect ten (10) days after its approval 

by the President of the United States. 
5 

SCHEDULE 1 

A EXED TO CODE OF FAIR COMPETITION FOR THE HAT LI I G I NDUSTRY 

ADOPTED BY THE NATIONAL HAT LI ING ASSOCIATION 

SECTION 1. On and after the date this Code takes effect employers in the hatlining industry shall not operate on a schedule of hours of labor in excess of the 

following: 

(a) Factory workers, forty (40) hours a week. o employee shall work more 

than eight (8) hours in any one day . (b) Accounting, clerical, office employees, forty (40) hours a week. 

SEC. 2. On and after the date this Code takes effect, the minimum wages to be 

paid by employers in the hat-lining industry (with exceptions hereafter noted) 

shall be as follows: 

(a) 

Other 

New cities 

York above All other 

City 150,000 

popula- tion 

Skilled Labor: Pullers, per hour __________ ____________ ___ ___ ______ _____ __ _________ __ _ $0.60 $0. 56 $0.50 Cutters " " __ ___ ______ ___ ______ ______ ____ ________ -----_ ---------

Semi-Skilled Labor: . 70 . 60 . 50 

Lining Operators, per hour_ ------------------------------------------ . 37 1⁄2 .35 .321⁄2 Tip Makers, per hour _______ ____ _____ __ ____ ______ ____________ ____ __ _ _ . 37H! . 35 .321⁄2 Seamers " " ___ __ ___ ___ _____ _________ _____ ______ ___ _____ __ _ _ 

Assistan't Cutters or Cutting Attendants, per hour ____ __ _______ __ ___ _ . 371⁄2 . 35 .321⁄2 . 42J,2 . 40 .371⁄2 

Unskilled Labor: 

Assistant Pullers, per hour _------------------------------------------ .30 .271⁄2 .271⁄2 Counters and Packers, per hour_ __ ________ ________ ___ ___ _________ ___ _ . 30 .271⁄2 .271⁄2 

Office Boys, Office Girls, and Other Inexperienced Help and Unskilled Labor, per week _______ ________________ __ _______ __________ ____ _____ _ 12. 00 11. 00 11. 00 

(b) Employees mentioned in Section 1 (b) of this schedule other than those 

mentioned in Section 2 (a ), Fifteen Dollars ($15.00) per week in any City of over 

500,000 population or in the immediate trade area of such City; 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; Fourteen Dollars ($14.00) 

per week in any City or Town of between 2,500 and 250,000 population or in the 

immediate trade area of such City or Town; in towns of less than 2,500 population twenty per cent (20 %) over that paid July 20, 1933, provided that this shall 

not require wages in excess of Twelve Dollars ($12.00) per week. Population for 

the purposes of this schedule shall be determined by reference to the 1930 Federal 

Census. 

SEc. 3. The provisions for the payment of a minimum wage establish a guaranteed minimum rate of pay per hour of employment regardless of whether the 

compensation of employees is otherwi e based upon piece" ork performance, it 

being understood that manufacturers ,,,-ho are now operating their factories on a 

piecework ba is need not change to a rate of pay per hour. 

SEc. 4. There are certain classes of operations requiring special skill and not 

included in this Schedule and the foregoing minimum wage ha no referenrP to 

such rla s for which higher wages shall he paid. 

SEC. 5. ~ o manufacturer shall operate his plant upon more than one shift. 

SEc. 6. No contract for the manufacture of hat linings shall bf let out b) any 

manufacturer and n lini11gs are to be manufactured outside of the plant of the 

manufacturer, except in the plant of a manufacturer who has accepted and is 

complying ·with tnis Code. 

SEc. 7. On and after the date this Code takes effect mployers in the hat-lining 

industry shall not employ any person under th age of sixteen (16) years. 

SEC. 8. No emplo:vee shall be employed more than the maximum hour herein 

proviqed, whether at one or more shop . SEc. 9. The provisions of Section 1 of this Schedule shall apply t o manufacturers engaged in the industry who shall themselves perform manual labor. 
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SEc. 10. The provisions of Section 1 of this Schedule shall not apply to employees in a managerial or executive capacity receiving more than Thirty-five 

Dollars ($35.00) a week; nor to employees in emergency, maintenance, and repair 

work; nor to very special cases where restriction of hours of highly skilled workers 

on continuous processes would unavoidably reduce production, but, in any such 

special case, at least time and one third shall be paid for hours worked in excess of 

the maximum. 

SEc. 11. The provisions of Sections 1 and 2 of this Schedule shall not apply to 

salesmen. 

SEc. 12. The provisions of Section 2 of this schedule shall not apply to apprentices. No employer shall employ more apprentices than shall equal 10% of all 

employee and no apprenticeship shall exceed six (6) weeks in duration. The 

wages to be paid to apprentices shall be the following minimum amounts: 

In New York City, 18¢ per hour. 

In other cities over 150,000 population, 17¢ per hour. 

Elsewhere, 15¢ per hour. 

NATIONAL HAT LINING ASSOCIATION, 

By WILLIAM HOROWITZ, President. 

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