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3 1262 08483 0040 Registry No. 297-1-13 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

:fOR THE 

TEXTILE PROCESSING 

INDUSTRY 

AS REVISED ON AUGUST 28, 1933 

I 

WI DO OUR PART 

The Code for the Textile Processing Industry 

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

industry, and none of the provisions contained t herein 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 
SUBMITTED BY 

NATIONAL TEXTILE PROCESSORS GUILD, INC. 

(II) 
PROPOSED CODE OF FAIR COMPETITION OF THE TEXTILE 

PROCESSING INDUSTRY 

SUBMITTED BY THE NATIONAL TEXTILE PROCESSORS GUILD, INC. 

This Code of Fair Competition for the Textile Processing Industry 

1s intended to effectuate the purposes of the National Industrial Re- covery Act by reducing unemployment, increasing wages, improving the working conditions of labor, and eliminating unfair and 

harmful competitive practices. . · This Code is based upon the fact that the inherent and chief characteristic of the Textile Processing Industry is that it is twt engaged in the production of commodities, but principally performs 

services with respect to the products of other textile industries, such 

as fibres, yarns, and fabrics; thus economically this industry is not 

in a position to control or correlate its activities with the demand 

of other industries. 

ARTICLE I-DEFINITIONS 

Whenever used in this Code, the terms defined in this Article shall, 

unless the context shall otherwise indicate, have the meanings hereinafter set forth. The definition of any such term in the singular 

shall apply to the use of such term in the plural, and vice versa. 

SECTION I. The term " industry " means and includes the business 

of Commission scouring, bleaching, dyeing, and glazing of raw stock, 

tops and yarns of cotton, wool and rayon and/ or other synthetic 

fibres and/or combinations thereof which may be spun into yarn 

(except silk and spun silk yarn) and woolen and worsted fabrics 

including the application of such processes to hosiery, and other 

knitted textiles. 

SEc. II. The term " Guild " means the National Textile Processors 

Guild, Inc., a Inembership corporation organized under the laws 

of the State of New York. 

SEc. III. The term " Board " means the Board of Directors (as 

from time to time constituted) o:f the Guild. 

SEc. IV. The term "Principal machinery" means all machinery 

and equipment used in the Industry except only such machinery and 

equipment as may be determined by the Board to be preparatory 

and/or finishing andjor accessory machinery and equipment for each 

branch o:f the Industry. 

SEc. V. The term "Act" n1eans the National Industrial Recovery 

Act as approved by the President of the United States on June 16th, 

1933. 

SEc. VI. The term" employee" means all persons working in the 

Industry for wages and/ or salaries; except those employees who 

serve in executive, administrative, supervisory, sales, and/ or technical capacities. 

8946-33 (1) 
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SEc. VII. The term "persons" shall include natural persons,. 

partnerships, associations, and corporations. 

SEc. VIII. The term "The effective date" shall be the second 

Monday after this Code shall have been approved by the President 

of the United States, pursuant to the Act. 

ARTICLE II-LABOR 

SECTION I. Collective Bargaining.-Pursuant to subsection (a) of 

Section 7 of the National Industrial Recovery Act and so long as 

the Code shall be in effect, the Code shall be subject to the following 

conditions: 

(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 berequired as a condition of employment to join any company union 

or to refrain from joining, organizing, or assisting a labor organiza-· 

tion 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, as provided herein. 

SEc. II. M awi1num H ours.-On and after the effective date hereof 

employers in the industry shall not operate on a schedule of hours. 

of labor for their employees, except repair crews, engineers, electricians, firemen, office, laboratory and supervisory staff, receiving 

and shipping, watching, and outside crews and cleaners, in excess 

of forty hours per week, subject to the flexible provision that because of the exigencies of the industry it may be necessary to work 

employees more than forty hours per week on occasion but the 

weekly work for each individual for six months calendar period beginning with the effective date hereof shall not exceed an average of 

forty hours per week nor shall such additional work required exceed 

eight hours in any one week. 

On and after the effective date 4ereof, the maximum hours of 

labor for office employees in the Industry shall be an average of 

forty hours per week oYer each period of six months, beginning 

with the effective date hereof. 

The hours in each week during which any employee shall haveworked in other establishments or in other industries, shall be indueled in the total number of hours such employee is permitted to 

work under this Code. 

SEc. III. Minirr1.,um Wage.-(1) On and after the effective date 

hereof, the minimum wage that shall be paid by employers i~ the 

Industry to any of their employees including apprentices shall be 

as follows: thirty-two and one half cents per hour, or thirteen dollars for forty hours of labor. 

The Industry recognizes that certain operations are classified as 

skilled and certain operations as semi -skilled and that the foregoing 

1ninimum wage has no reference to such classes to whom higher 

wages than the minimum shall be paid. 
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(2) Inasmuch as many employers in this industry have heretofore made adjustments in hours and wages and in order to insure 

equality in the application of this article in the industry; it is provided that no employee after the effective date hereof shall receive 

for forty hours of labor less compensation than he received or would 

have received as of May 1st, 1933, for the weekly schedule of work 

(excluding overtime) in operation on that date in the plant in which 

he is employed. 

SEo. IV. Minors.-On and after the effective. date, no person 

under sixteen years of age shall be employed in the Industry. 

SEc. V. Machine H ours.- After the effective date hereof, no person in the Industry shall operate any principal machinery more.· 

than eighty hours in any week. 

ARTICLE III- ADMINISTRATION 

SECTION I. (a) To effectuate further the policies of the Act, a 

Textile Processing Industry Committee is hereby designated to cooperate with the Administrator as a Planning and Fair Practice 

agency for the industry. This Committee shall consist of five representatives of the Industry elected by a fair method of selection, 

to be approved by the Administrator and three members without 

vote appointed by the President of the United States. Such agency 

may from time to time present to the Administrator recommendations based on conditions in their 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. 

(b) Such agency is also set up to cooperate with the Administrator 

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 to report the same to the Administrator. 

(c) This Code and all the provisions thereof are expres ly made 

subject to the right of the President, in accordance with the provision of Clause. 10 (b) of the National Indu trial Recovery 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 

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 .. 

(d) Such of the provisions 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 the circumstances or experience 1nay 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 thereof. 

SEc. II. All em.ployers engaged in the Industry and coming under 

the operation of this Code shall bear their proportionate. share of 

the expense incident to initiating, securing the approval of, and a lministrating this Code of Fair Competition. These funds shall h~ 

paid to the Board or its duly-constituted agency for that purpose. 
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AHTIOLE IV-UNFAIR CoMPETITION 

SECTION I. Selling B elow Oost.-Pending the completion of the 

installation of a systen1 of cost finding throughout the industry, but 

only after such final approval by the President of the United States, 

the Board is hereby authorized to fix basic costs inclusive of de.preci-

.ation and obsolescence for each type of service rendered by any concern in the industry. No concern shall charge below cost, inclusive of depreciation and 

·Ob olescence, as determined by the Board pursuant to resolution for 

the time being or by the cost-finding system when installed or 

operating. 

SEc. II. R ebates and A llowances.-N o persons in the Industry 

.shall allow any rebates and/ or re·fun ls and/ or special discount, imp roper damage claims and/ or improper deductions or allowances, 

in any form to any customer or his agent upon any condition 

whatsoever. 

SEc. III. Misrepresentations.- No person in the Industry shall 

make any false statement and/ or false representations, oral or written, relative to the services performed by him, with the, intent or 

with the effect of deceiving or misleading customers or others. 

No person in the Industry shall make or issue any bill or invoice 

which falsely states the quality or quantity, charges, and terms for 

s ervices rendered. 

SEc. IV. Transportation Oharges.-No person in the Industry 

.shall allow his customers transportation charges upon merchandise 

delivered for processing or terms of credit or cash discounts, other 

than as may be authorized from time to time by the Board. 

SEc. V. Gratuities.-The giving or granting, directly or indirectly, 

or money, goods, or anything of value to customers or prospective 

customers or their agents or employees or representatives, for the 

_purpose of influencing and/ or obtaining business, is an unfair trade 

practice. 

SEo. VI. Sn~all Lots.-N o person shall process small lots of customers' merchandise below the minimum quantities used as a charge 

basis without making a differential charge as may be established by 

the Board from time to time. 

SEc. VII. R e-Dyeing.-N o person in the Industry shall redye 

fibres, yarns, fabrics, and/ or hosiery without charging for redyeing 

and stripping (where necessary), as may be established by the Board 

-from time to time. 

SEo. VIII. Unit of W ork.-The Unit of work and charge in the 

industry shall be fixed by the "Board." 

SEc. IX. F(J)lse Statem,ents.-N o person in the Industry shall make 

.any false, oral or written, statement or representation with respect 

to the financial standing, ability, quality, or service, character of 

management of other persons or employees in the Industry. 

SEo. X. Re-Shipment Unprocessed'.-No person in the Industry 

..shall release from his possession any merchandise, unprocessed, belonging to others, unless a charge is made to his customer, as directed 

by the board. 
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ARTICLE V-PROD CTION CAPACITY 

After the effective date, (1) no per on not now engaged in the 

Industry shall operate any principal machinery unless he shall first 

have secured permission to do so from the Administrator, after an 

opportunity shall have been given the Board to be heard thereon; 

(2) all persons now engaged in the industry shall register their principal machinery with the Administrator or his appointee; ( 3) except 

for the replacement of a similar number of existing principal machines or to bring the operation of existing principal machinery into 

balance, all persons in the Industry shall secure certificates from the 

Administrator that such installation will be consistent with effectuating the policy of the Act, and such certificates may be granted or 

withheld by the said Administrator. 

ARTICLE VI-U NIFORIVI CoNTRACT 

The Board is hereby authorized, pursuant to resolution by them 

to be adopted hereafter, to adopt a uniform contract which shall be 

the standard form of contract for the industry, and which shall be 

n eel in all transactions providing for the processing of material 

serviced by the industry, subject only to such changes therein as may 

from time to time be authorized by the said Board. Other standard 

forms of contract appropriate to respective divisions of the industry 

may be adopted by those divisions, subject to the approval of the 

Board. 

ARTICLE VII-CLAIM ADJUSTMENT 

To establish and participate in the establishment of a Control 

Adjustment Bureau for the adjustment of claims of customers against 

persons in the Industry and upon the establishment of such Bureau, 

all claims shall be adjusted subject to the rulings of the said Bureau 

and not otherwise, except with the approval of the Board. 

ARTICLE VIII-CREDIT 

The Board may establish rules and regulations providing for the 

withdrawal of credit from customers who fail andj or refuse to pay 

for services performed for them by any person in the Industry. 

0 .