UNIVERSITY OF FLORIDA 

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203-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

TEXTILE BAG INDUSTRY 

AS APPROVED ON SEPTEMBER 18, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PARl 

1. Executive Order of President Roosevelt 

2. Report of Administrator 

3. Report of Deputy Administrator 

4. Text of Code 

' . "' . 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washiniton, D.C. - - - - - - - - Price 5 cents 
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EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE TEXTILE BAG 

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 my approval of a Code 

of Fair Competition for the Textile Bag Industry, and hearings having been held thereon and the Administrator having rendered his 

repo.rt containing an analysis of the said Code of Fair Competition 

together with his recommendations and findings with respect thereto, 

and the Administrator having found that the said Code of Fair 

Competition complies in all respects with the pertinent provisions 

of Title I of said Act and that the requirements of clauses ( 1) and 

(2) of Subsection (a) of Section 3 of the said Act have been met: 

Now, THEREFORE, I, FRANKLIN D. RoosEVELT, President of the 

United States, pursuant to the authority vested in me by Title I 

of the National Industrial Recovery Act, approved July 16, 1933, 

and otherwise, do adopt and approve the report, recommendations 

and findings of the Administrator and do order that the said Code 

of Fair Competition be and it is hereby approved. 

Approval recommended: 

HUGH s. JOHNSON, 

Administrator. 

THE WHITE HousE, 

September 18, 1933. 

(III) 

FRANKLIN D. ROOSEVELT. 
r 

REPORT OF THE ADMINISTRATOR 

INTRODUCTION 

To the P1·esident: 

SEPTEMBER - , 1933. 

This is a r~port of the Hearing on the Code of Fair Competition 

for the Textile Bag Industry in 'the United States, conducted in Room 

2062 Department of Commerce Building in Washington, D.C., on 

Aughst 31, 1933, in accordance with the provisions of the National 

Industrial Recovery Act. 

The following papers are included and annexed: 

1. Code submitted. 

2. Notice of Hearing. 

3. Bylaws of the Textile Bag Manufacturers' Association. 

4. -Statement of procedure. 

5. List of witnesses. 

6. Transcript of the records. 

7. -Statistical analysis. 

In accordance with the cnstomary ,procedure every person who 

filed an appearance ·was ·freely heard in public, and all statutory and 

regulatory requirements were com,plied with. 

The Code which is attached was presented ·1,y duly qualified and 

authorized representatives of the Indust~y, complying ,vith the statutory requirements, as representing 80% of the capacity of ·the 

Industry. 

GENERAL CHARACTERISTICS OF THE INDUSTRY 

The Textile Bag Industry includes the manufacture of .a general 

line of bags made from cotton cloth purchased in this country and 

imported from India, for the mantifacturers own .usie or for sale. 

Such bags are used almost entirely as shipping containers and to a 

very large extent for agricultural products. 

Over 90 % of the cotton l?ags and probably over 75% of the burlap 

bags produced by our industry are printed with the buyer's brand 

applying to the product for which he uses the bag as a shipping 

container. It is estimated that more than 90% of the output of the Textile 

Bag Manufacturing Industry is used by producers of agricultural 

products or derivatives thereof, or by producers of other products 

subject to extraordinary seasonal demand. For this reason the rate 

of production fluctuates during the year with a peak rate of approximately 150% of the annual average, and a slack rate of approximately 70% of the annual average. 

It is estimated that approximately 35 concerns comprise the Tex- tile Bag Industry, based on a careful analysis of all concerns known 

(IV) 
V 

to have manufactured textile bags with the exception of those 

manufacturers-

( a) Primarily engaged in conditioning and resa.le of second-hand 

bag ; 

(b) Incidentally engaged in making textile bags as a part of 

other principal activities such as awning and tent manufacturing, 

etc.; · 

( c) Engaged in the manufacture of special bags such as coffee-urn 

bags, tea bags, tobacco bags, cotton pick sacks, and small cotton 

mailing bags not usually considered a part of, or competitive with 

the general line of textile bags. 

About 60% of the employees in the Industry are women. 

The industry reports that employment in the Textile Bag Industry is now approximately 88.5% of the 1929 peak of employment 

as compared with only 58% for all manufacturing industries, as 

reported by the National Industrial Conference Board. 

In 1928 and 1929 the Textile Bag Industry gave employment to 

approximately 9,700 individuals with a plant operation of 49.4 

hours per week. Today there are approximately 8,700 employees 

and an average plant operation of 47.5 hours per week. 

The percentage of the 1933 pay roll to the 1929 pay roll for the 

Textile Bag Industry was 66%, and in all manufacturing industries, 

was 36%. The average wage during 1933 to the average wage during 1929 

in the Textile Bag Industry was 76% and in all manufacturing 

industries was 60 %. 

Size of the lndustry.-The aggregate invested capital ( estimated) 

is as follows : 

1928 _______________________________________ $45,000,000 

19-30 _______________________________________ 45,000,000 

1932 _______________________________________ 45,000,000 

1933 _______________________________________ 45,000,000 

The aggregate number of employees (estimated) was as follows: 

1928 _____________________________________________ 9,710 

19'30 _____________________________________________ 9·, 700 

1932 _____________________________________________ 8, 400 

1933 _____________________________________________ 8,700 

The aggregate production capacity (estimated) is as follows: 

1928 ___________________________ 222,000,000 

1930 ___________________________ 179,000,000 

1932 ___________________________ 127,000,000 

The aggregate annual sales in dollars ( estimated) was as follows: 

1928 __________________________ $148,000,000 

1930 __________________________ 119,000,000 

1932__________________________ 68,000,000 

The statistical position of the industry has fairly been repre£ented 

by them. 

THE CODE 

For the establishment of minimum wage rates in the industry the 

United States has been divided into two sections, the North and the 
VI 

South. The line of division is that established by the Cotton Textile 

Industry. 

The minimum wages at the rate of $13 per week in the North and 

$12 per week in the South are identical with those established in 

the Cotton Textile Industry. Because of the fact that a number of 

textile bag manufacturers operate their own cotton 1IIW.ls, that many 

of the bag manufacturing plants are located in textile areas, and 

that the class of labor in the textile bag industry is similar to that 

in the textile industry, it is clearly evident that the labor conditions 

should be substantially the same. 

This code provides that productive machinery shn.ll not be operated in excess of two shifts of 40 hours each per week. 

The code provides ~or a 40-hour week for employees with a 48-

hour maximum during the peak season, which is not to exceed 8 

weeks in any 1 year. . 

For the administration of the code there is established a Control 

Committee duly set up in :fairness to the entire industry. 

The provision for Trade Practice Rules contained in this code 

should to a great dee;ree correct certain evils that have existed and 

that have developed 1n the industry. 

For several months prior to the date of hearing the textile bag 

industry held numerous meetings, the purpose of which was to. prepare and adopt a code satisfactory to all manufacturers in the 

industry. Unfortunately, from time to time soma manufacturers took exception to certain provisions of the code. After considerable work and 

~ff ort, however, a uniform code was deve-k>ped so that on the day 

before the hearing date all exceptions arid protests were withdrawn 

while five unassociated manufacturers joined the Textile Bag Manufacturers Association. 

Thus was shown an unusual spirit of fairness and a spirit of give 

and take in finally i.-~aching agreement, thereby formulating a code 

equitable to all and conforming to the purposes of the Act. 

The Administrator finds that-

( a ) The Code as revised complies in all respects with the pertinent 

provisions of Title I of the Act including, without limitations, 

subsection (a) of Section 8 and sub ection (b) of Section 10 thereof; 

and that 

(b) The Textile Bag Industry imposes no inequitable restrictions 

upon admission to membership therein and are truly representative 

of the Textile Bag Industry. 

( c) The Code is not designed to eliminate or oppress small enterprises and will not operate to discriminate against thein, and will 

tend to effectuate the policy of Title I of the National Industrial 

Recovery Act. 

Accordingly, I recommend the appro-val of the Code o.f Fair Competition for the Textile Bag Industry. 

Respectfully submitted. 

Hum-r S. JoHNSON, 

Ad!Jnin.istrator. 
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To : General Hugh S. Johnson. 

From: A. D. Whiteside. 

SEPTEMBER 12, 1933. 

Subject: Code for the Textile Bag Manufacturing Industry. 

The Hearing of the Code for the Textile Bag Manufacturing Industry was conducted by H. B. Ludlum, Jr., acting in the capacity of 

an Assistant Deputy Administrator. The H earing was held on 

August 31, in Room 2062 of the Commerce Building. 

Attached to this memorandum are the reports from the Labor, 

Industrial and Consumers' Advisory Boards, Legal Division, and 

Economic Research and Planning Division. The suggestions contained in the reports from the Advisory Boards are as follows: 

1. Labo1· Advisory Board.-The L abor Advisory Board approved 

the report with the qualification that any improvement which should 

be made in the Cotton Textile Code is to be applied to the Textile 

Bag Code. 

2. Industrial Advisory Boa1·d.-Mr. H. H. Allen, Industrial Advisor, reported complete approval of the Code. 

3. Consumers' Advisory Board.-Part of the recommendations of 

the Consumers' Advisory Board were incorporated in the provisions 

of the Code, whereas with the other recommendations they made, 

it was felt that they should be considered by the Textile Bag Code 

Committee for future amendments. 

One objection of the Consumers' Board was on the subject of 

replacement cost of materials, but as this has been a practice ip the 

Industry for many years, it was not considered advisable to follow 

their recommendations. 

4. Legal Division.-All of the provisions in the Code were examined and approved by the Legal Division. 

5. E cononiic R esearch and Planning Division.-The report of this 

Division shows that the Textile Bag Industry has maintained a very 

good position during the depression and that the provisions of the 

Code will increase employment substantially. 

I have examined the Code and have considered the reports from 

the Advisory Boards and recommend the approval of the Code as 

it stands. 

(VII) 

A. D. WHITESIDE, 

Deputy .Admi,nist1·ator. 
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CODE OF FAIR COMPETITION FOR THE TEXTILE BAG 

INDUSTRY 

PREA.l\'.IBLE 

To effectuate the policy of Title I of the National Industrial 

Recovery Act during the period of emergency, the following provisions are established as a Code of Fair Competition for the Textile 

Bag Industry. 

ARTICLE I-DEFINITIONS OF TERMS 

(a) The term "textile bag industry", when used in this Code, 

includes the manufacture of a general line of bags made from new 

cotton and new burlap woven cloth for the manufacturer's own use 

or for sale. 

(b) The term "employers " shall mean all who employ labor in 

the conduct of any branch of the textile bag industry as defined 

above. 

(c) The term'' employees", as used herein, shall include all pere sons employed in the conduct of the textile bag industry. 

( d) The term "productive machinery" as used herein, is defined 

to me-an sewing machines and/ or printing presses, baling presses, 

turning machines and all other productive machinery used in the 

Textile Bag Industry. 

( e) The term " learner " as used herein shall mean an ·employee 

engaged in any process of the industry requiring skilled labor with 

less than eight ( 8) weeks' experience in the same or any comparable 

process. 

(g) The term "effective date " as used herein, is defined to mean 

the second Monday after the approval of this Code by the President 

of the United States. 

ARTICLE II-LABOR PROVISIONS 

The textile bag industry will comply with the following specific 

provisions of the National Industrial Recovery Act. 

(a) 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. 

(b) 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 from joinino-, oraanizing, or assisting a labor organization of his own choosing; and 

12104°-133-39--33 (1) 
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( c) 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. 

ARTICLE III-REGULATIONS OF HOURS OF WORK 

(a) (1) No employee except emergency maintenance and repair 

crews, engineers, electricians, firemen, supervisory staff, shipping 

crews, watching crews, outside crews, and cleaners shall work more 

than forty hours per week, or more than eight hours in any twentyfour hour period, provided, however, that during peak seasons (not 

to exceed eight weeks in any one year) employees may work not more 

than forty-eight hours per week. 

(2) The Control Committee hereinafter provided for in Article 

VI, shall prepare and submit to the Administrator by January 1, 

1934, a report on the hours of labor for cleaners and outside 

employees. 

(b) No productive machinery shall be operated for more than two 

shifts of forty hours each per week. 

AnTicLE IV-MINIMUM vv AGE RATEs 

(a) For the purpose of determining minimum wages, the industry 

shall be divided into the following two sections : 

(1) The States of Maryland, Virginia, ,vest Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Ten- • 

nessee, Kentucky, Louisiana, Arkansas, Oklahoma, Texas, and the 

District of Columbia, shall constitute the " Southern Section." 

(2) All other states of the United States shall constitute the 

"Northern Section." 

(b) On or after the effective date, no employee, except learners, 

sweepers, elevator men, yard men, hand ttuckers, and infirm or physi-

. cally handicapped employees, shall be paid less than the rate of 

twelve dollars per week when. employed in the southern section of 

the industry, or less than the rate of thirteen dollars per week when 

employed in the northern section, for forty hours of labor. 

Learners, sweepers, elevator men, yard men, and hand truckers 

shall be paid not less than eighty percent of the minimum wage set 

forth in this section. 

At no time shall more than ten percent of the total employees be 

classified as learners and at no time shall more than five percent of 

the total employees be classified as infirm or physically handicapped 

employees. 

( c) Although excepted from maximum-hour provisions, repairshop crews, engineers, electricians, and watching crews will be paid 

time and one third £or overtime. 

(d) Employers shall not reduce the compensation for employment 

now in excess of the minimum wages hereby agreed to (notwithstanding that the hours worked in such employment may be hereby reduced) and shall increase the pay for such employment by an equitable readjustment of all pay schedules. This clause shall be construed in the same manner as paragraph 7 of the President's Reem-
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ployment Agreement h_as been interpreted by the National Recovery 

Administration in Interpretatiofls Nos. 1 and 20, and su,bsequent 

interpretations. 

ARTICLE V-PROHIBITION OF CHILD LABOR 

No employer in the textile-bag industry shall employ any minor 

UI}.q.er the age of sixteen years; provided~ however, that when a State 

Law specifies a higher minim.um age, no person below the age so 

specified by such law shall be employed within that State. 

ARTICLE VI-A.DMI.1 ISTRATION 

(a) To effectuate further the policies of the National Industrial 

Recovery Act a Control Coilllnittee is hereby designated to cooperate 

w.itli the Administrator as a planning and fair practice agency for 

the textile-bag industry. This committee shall consist of the members o,f the Executive Committee of the Textile Bag Manufacturers 

Association, one representative to be elected by companies engaged 

in the textile-bag industry who are not members of the Textile Bag 

Manufacturers Association, and such governmental representatives, 

without vote, as shall be appointed by the President of the United 

States. Such agency may fr01n tin1e to time present to the Ac1ministrator recommendations based on conditions in the textile-bag rndustry 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) The Control Committee 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 

compla5nt by any person affected, and to report the same to the 

Administrator. 

( c) The Control Committee· may recommend that the Administrator of the National Industrial Recovery Act require registration by 

persons engaged in the textile ba.g industry of their productive machinery. The Committee may also recommend that no instaliation 

of additional productive machinery, except for replacement of a 

similar number of existing m-achin.es, be permitted by anyone, unless 

the Administrator shall find that the installation of uch additional 

machinery will tend to effect the policy .of the National Industrial 

Recovery Act and shall give his approval thereto. 

(d) Recom1nendations of the Control Committee hall upon approval by the A.dm.inistrator after such public notice and hearing 

as he may specify become operative as part of this Cod0 • 

( e The Control Committee shall from time to time collect such 

reports from those engaged in the textile bag industry as the Control 

Committee, subject to the appro'Val o:f the Administrator,- may require 

in order to effectuate the administration and enforcement of the 

provi ions of this Code. 

(f) Any employer may participate in the endeavors of the Textile 

Bag Manufacturers Association relative to the revision or additions 

to or administration of this Code by accepting the proper pro rata 
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share of the cost and responsibility of creating and administering 

it, either by becoming a member of said Association or by paying 

to it an amount equal to the dues from. time to time provided to be 

paid by a member in like situation of the Textile Bag Manufacturers 

A sociation. 

ARTICLE VII-TRADE PRACTICE RULES 

SECTION 1. After such tiII).e as the Control Committee, subject to 

the approval of the Administrator, shall determine those items that 

shall be used in determining costs, it shall be an unfair method of 

competition for a manufacturer to sell his product at less than his 

cost of production, which shall include the items specified by the 

Control Committee. 

The cost of raw material, namely, cotton cloth and burlap, shall 

be computed on the basis of the replacement cost. In case of burlap, 

spot, afloat or future shipment as the case may be for the shipment 

period from the bag factory of bags sold, prevailing as of the date 

of sale. Replacement cost may be transmitted by the Secretary of 

the Association to its members and non-members, by telegraph or 

mail, as changes occur. 

SEc. 2. Price Lists: Each member shall publish his price lists on 

cotton flour, meals, and feed bags which shall clearly state the 

terms and conditions under which the bags are to be sold by him. 

The price lists so published shall be maintained by him and any deviation by him from such published price lists shall be considered 

an unfair trade practice and is in violation of this Code. 

SEc. 3. A purchaser shall not have the right, either expressly or 

tacitly, to cancel or amend any order for merchandise, without proper 

reimbursement. · 

SEc. 4. Merchandise shall not he sold on the basis of a guarantee 

against decline. ' 

SEc. 5. Orders and contracts shall specify quantities, prices and 

delivery dates, and shall be binding alike upon both buyer and seller. 

SEc. 6. Manufacturers shall not book orders with their customers 

immediately prior to making an advance and for the purpose of 

favorina such customers. . SEc. 7. Manufacturers shall not announce price advances to salesmen or special purchasers prior to the effective date of such advances, 

nor shall they after they have advanced their prices allow certain 

purchasers to book bags at prices in effect just prior to the advance. 

SEc. 8. Quoted terms as to quantity differentials shall be lived 

up to and all purchasers shall be treated in identically the same 

manner with respect to quantity differentials. No purchaser shall 

receive the benefit of larger quantity prices on shipments covering 

smaller quantities where other purchasers do not receive the same 

treatment. 

SEc. 9. Manufacturers shall not list special or extra charges, 

such as charges for back printing, all over-printing, etc., and then 

refund or rebate to certain purchasers such charges unless all purchasers are treated on exactly the same basis with· respect to this 

practice. 
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SEc. -10. The effecting of adjustment or claims with purchasers of 

textile bao·s in such manner as to grant crnt allowances, secret 

-rebates, or secret concessions, creates in effect pric cliscrimination 

and is a violation of 'the Cod . 8Ec. 11. In the event of a change in price cf textile bags the 

giving in any form of adjustment , allowances, discounts, credits, 

or refunds to purchasers or sellers of hags, for the purpose or with 

the effect of altering r etroactively the price quoted or charged, in 

such manner as to create price discrimination, is a violation of this 

Code. 

SEc. 12. The pre-dating or the post-dating of any invoice or contract for the purchase or sale of textile bags, except to conform to 

a bona fide agreement for the purchase or sale entered into on the 

pre-date, is a violation of this Code. 

SEc. 13. Terms of sale shall be strictly adhered to. The payment 

or allowance of ecret rebates, refunds, credits, or unearned disc,ounts, 

whether in the form of money or otherwise, or extending to certai1t 

purchasers such services or privileges not extended to all purchasers 

under like terms and conditions shall he a violation of this Code. 

SEc. 14. Attempts to purchase business or obtain information 

concerning a competitor's business by gifts or bribes shall be a 

violation of this Code. 

SEc. 15. The making of, causing or permitting to be made, any 

false or deceptive statements, either written or oral, of or concerni~g 

the business policy of a competitor, his product, selling price, financial, business or :personal standing, sh all be a violation of this Code. 

SEc. 16. Inducmg or attempting to induce by ariy means or device 

whatsoever, the breach of contra9t between a competitor and his 

customer during the t erm of such contract shall be a violation of this 

Code. 

SEc. 17. When a manufacturer has made a quotation on bags, 

such quotation shall stand and be final and not be changed unless 

justifi~d by a change in the market for the goods involved. 

ARTICLE VIII-GENERAL PROYISIONS 

(a) No provision in this code shall be interpreted or applied 

in such manner as to-

( 1) Promote monopolies ; 

(2) Eliminate or oppress small enterprise; or 

( 3) Discriminate against small enterpri es. 

(b) 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 Reco,very 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 rio-ht of the President to cancel or modify his approval of this 

Code or any condition imposed by him upon his approval thereof. 

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 
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in the 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 thereof. 

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