UNIVERSITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II IIII IIII IIII IIIIII Ill llll I I 

3 1262 08486 7802 

Approved Code No. 200 Registry No. 299B-30 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND 

CLEANSING TISSUE INDUSTRY 

AS APP ROVED ON JANUARY 12, 1934 

WE DO OUR PART 

0 ~ ·-----· '" '' ' ----

U NITED STATES 

GOVERNMENT P RINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of D ocuments, Washington , D.C. - - - - - - - - - Price 5 cents 

V 
This pu!Jlicntion is for ~aie oy the Superintendent of Documents, Go\·emment 

Printing Office, \Yafhington, D.C., aml by district offices of the Burenn of Foreign 

and Domestic Commer ce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga .: 504 P ost Office Building. Birmingham, Ala .: 257 Federal Building. 

Boston, :i.\lass.: 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Cha rl ciston, S.C.: Chamber of Comme ·ce Building. 

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

CleYela ml, Ohio : Chamber of Commerce. Dallas, Tex.: Chamber of Commerce BuEding. 

Detroit, l\Iich.: vOl First National Bank Building. 

Houston, Te:s:. : Chamber of Commerce Building. 

India napolis, Ind. : Chamber of Commerce Building. 

JacksonYille, Fla.: Chamber of Commerce Building. 

Kansa s City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadwa y. 

Louisville, Ky.: 408 F ederal Building. 

Memphis, Tenn. : 22D F ederal Building. 

Minneapolis, Minn. : 213 F ederal Building. New Orlenns. Ln.: Room 225-A, Cust omhouse. 

New York, N.Y.: 734 Customhouse. No rfolk, Va.: 406 East Plume Street. 

P hiladelphia, Pa . : 422 Commercia l Trus[ Building. Pittsburgh, Pa. : Chambe r of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 50G Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Sea ttle, Wash.: 809 F ederal Building. 

/ 
Approved Code No. 200 

CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND CLEANSING TISSUE 

INDUSTRY 

As Approved on Jan nary 12, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND CLEANSING TISSUE INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of 1'itle I of the National Industrial 

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

Fair Competition for the Sanitary. Napkin and Cleansing Tissue 

Industry, 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: 

NO,V, 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, elated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report und 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. 

HUGH S .• JOHNSON, Administrator for I ndustrial R eco1Je1·y. 

Approval recommended : 

A. D. ,vHITESIDE, 

Division Adndnistrato1°. 

,v ASHINGTON, D.C., 

J aniw1~y l f, 1534. 

30483°-313-11--31 (G9) 
The PRESIDENT, 

The W kite House. 

INTilODUCTION 

Sm: This is a report of the Administrator on the application for, 

nnd public hearing on, the Code of Fair Competition for the Sanitary Napkin and Cleansing Tissue Industry as proposed by the Sanitary Napkin and Cleansing Tissue Association. The public hearing 

was conducted in "\V nshington on November 3, 1933. Every person 

who requested an appearance was freely heard in accordance with 

statutory and regulatory requirements. 

There are twenty-six (26) known firms in this Industry, of which 

eighteen (18) are members of the A sociation and account for 82% 

of all sanitary napkins and cleansing tissues produced. One of the 

uonmembers attended the public hearing and was heard. 

ECONOlHIC AND STATISTICAL MATERIAL 

For 1929 the sales volume was almost $13,000,000 and employment at about 900 to 1,000. The volume of sales for 1933 is estimated to be within 25% of the volmne of 1929. The Industry at 

present gives employment to about 1,100 to 1,200 workers. Consequently, the Industry has more than absorbed its unemployed as 

measured from the 1929 level. \Vith such figures at hand one cannot expect an appreciable increase in employment under the provisions of the Code. Increased purchasing power is indicated, 

nevertheless, because it is estimated that with the proposed minimum 

wages there will be at least a 13% increase in pay rolls. The statistics at hand are based on June of 1933 as a representative month, 

when approximately 37% of the employees were working in excess 

of 45 hours per week with 60 hours or more per week, a top figure. Rates of pay were as low as 20¢ per hour for workers although the 

weighted average would unquestionably demonstrate a more satisfactory rate. 

In this connection, it is important to reme1nber that t,Yo manufacturers control about 75 % of the total volume. vVith such a 

concentration of production, the Administrator has had to weigh 

all provision · carefully so as not to eliminate or oppress small 

enterpri es, who ma} not be as highly mechanized as their competitors and who do not enjoy the advantages of large Yolume. 

RES"Cl\IE OF CODE PROVISIONS 

The Code e tablishes 41~i¢ per hour for men and 331/3 ¢ per hour 

for women as the minimum rate of pay. The basic we-ek for pro-

(60) 
61 

duction is 40 hours. Such provisions will require a substantial contribution toward national recovery from part of the Industry. I 

believe that more drastic limitations at this parbcular time would 

work a hardship upon the smaller firms in the industry. 

Trade practices are standard and may be expected to create a 

degree of stability v,·hich heretofore has been notably lacking. 

FINDINGS 

The Deputy Admini trator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceeding. 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 ,velfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing antl maintaining united action of labor and management 

under adequate go-vernmental 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 Industry 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 an industrial association truly representative of the aforesaid Industry; and that Qa id association impo es no inequitable 

restrictions on a<lmi ion to membership therein. 

(cl) The Code is not designed to ancl "·ill not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to ancl will not eliminate or oppress 

small enterpri es and will not operate to discriminate against them. 

(f) Th{)se 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, the Code has been approved. 

Respectfully, 

January 1f2, 1934. 

HUGH S. JOHNSON, 

Adniinistrator. 
CODE OF FAIR COMPETITION 

FOR THE 

SANITARY NAPKIN AND CLEANSING TISSUE INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provision are established as a Code of 

Fair Competition for the Sanitary Napkin and Clean ing Tissue 

Industry, and shall be the standard of fair competition for such 

Industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

The term '' Sanitary Napkin and Cleansing Ti ·sue Industry" 

hereinafter called •· the Industry:', as used herein includes the manufacture, conversion, and/ or primary distribution of sanitary nap!. 

kins, cleansing ti sues, and other similar products and such branches 

or subdivi ions thereof of as may from time to time be included 

under the provisions of this Code. 

The term "employee" as used herein includes anyone engaged 

in the Indu try in any capacity receiving compensation for his 

services, irrespective of the nature or method of payment of such 

compensation. 

The term '· employer ' as use.cl herein include anyone by whom 

any such employee is compensated or employed. 

The term '' member of the Industry " as used herein includes anyone engaged in the Indu try as above defined, either as an employer 

or on his own behalf. 

The terms '·President", 'Act", and "Administrator" as used 

herein hall mean respectively the President of the United States, 

the National Indu trial Recovery Act, and the Administrator for 

Indu trial Reco-very. • 

Population and metropolitan di -tricts for the purposes of this 

Code shall be determined by reference to the 1930 Federal Censu . 

ARTICLE III-Ho-cRs 

l. No employee . ·hall be permitted to work in excess of 40 hours 

in any one ,Yeek or 8 hour in any 2-1-hour period, except- ( a) Employee engaged exclu ~ively in an executive or managerial 

capacity ri:ho are receiYing $3;'5.00 or more per week. 

(b) Outside .. ale. men~ 

(62) 
63 

( c) Office employees, who shall be permitted 4 hours per week in 

addition to the maximum herein e tablished but who shall not be 

permitted to work more than an aYerage of 40 hours per week in any 

consecutfre 3 months' period. 

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

apply to any employee engaged in emergency work involving breakdowns or protection of life or property, but in any such special case 

employees shall be paid at the rare of not less than one and one third 

times- the established rate for each hour worked in excess of 8 hours 

in any one day and/ or 40 hours in any one week. 

3. No female employee shall be required or permitted to work between the hours of 8 p.m. and 6 a.m. 

ARTICLE IV-WAGES 

. 

1. No employee, except as provided in Section 2 o:f this Article, 

shall be paid at less than the rate of 331/3¢ per hour for women, 

and 41%¢ per hour for men. This minimum wage shall not in any 

way be considered as a discrimination 'by reason of sex, and where 

in any case women do substantially the same work, or perform substantially the same duties as men, they shall receive the same amount 

of wages as men receive for doing such work or performing such 

duties. 

2. No accounting, clerical, office, service, or sales employee shall 

be paid at less than the rate of $15.00 per week in any City o:f over 

500,000 population, or in the Metropolitan District; or less than 

at the rate of $14.50 per week in any City between 250;000 and 

500,000 population, or in the Metropolitan District; or less than 

at the rate of $14.00 per week in Cities of 250,000 or less, or in the 

Metropolitan District. 

3. Thi Article establishes a minimum rate of pay, regardless of 

whether an employee is compensated on a time rate, piecework, or 

other basis. 

4. There shall be an equitable adjustment of all wages above the 

minimum. \Vithin sixty (60) days of the effective date o:f thi.s Code, 

the Code Authority shall present a proposal for such adjustment to 

the Admini trator, such proposal to become binding as a part of this 

Code upon approval by the Administrator after , uch hearing as he 

may prescribe, provided, howeYer, that in no event shall hourly rates 

of pay be reduced below those in effect for the 4 weeks ended June 

17 1933. 

5. A person whose earning capacity is limited becau e of age or 

physical or mental handicap may be employed on light work at a 

wage below the minim1!m e tablished by this Code if the employer 

obtains from the State Authority or other agency designated by the 

United States Department of Labor a certificate authorizing his 

employment at snch wages and for uch hours as shall be stated in 

the certificate. Each employer hall file with the Code Authority a 

list of all such persons employed by him. · 

ARTICLE V-GEKERAL LABCR Pnonsrnxs 

1. No person under lG years of age sh:111 be employed in the Industry, nor anyone under 18 year of age at operation or occupa-
64 

tions hazardou in nature or detrimental to health. The Code Authority shall submit to the Administnitor within 30 days after this 

Code is appron>d a list of such occupations. In any State an employer shall be deemed to haYe complird with this provision if he 

shall have on file a certificate or permit, duly i~. ·uecl by the n mhorjty 

in such State empowcrecl to ic::sue employment eertificate ·, showing 

that the employee is of the requirecl age. ' 

2. Employees shall haYe the right to organize and bargain collectively through representative. 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 rcpresentatiYf' , 

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 requirecl 

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. 

4. Employers shall comP,ly with the maximum honrs of labor, 

minimum rate13 of pay, ancl other conditions of employment approved or prescribed by the President. 

5. Employers shall also comply with the h3 gienic regulations promulgated by the United States Public Health Sen·ice. 

6. Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employees regulating the age of employees, wage,s, hours of work, or health, fire, 

or general working conditions than under this Code. 

7. Employers shall not reclassify employees or duties of occupations performed by employees so as to defe_at the purposes of 

the Act. 

8. Each employer shall post in conspicuou places accessible to 

f'mployees full copies of Articles III, IV, and V of t.hi. · Code. 

AnTICLE VI-Ao:MINISTRATIO~ 

To further effectuate the policie of the Act a Code Authority is 

hereby constituted to administer this Code. . 

· 1. Organization and constitution of Code Authority. 

( a) The Code Authority shall consist of seven members, or such 

other nmnber as may be approved from time to time by the Adm.inistrator, to be selected as hereinafter set forth, and of ·uch additional members, without vote as the Administrator, in his discretion, 

may appojnt to represent nch groups or governmental agencies as 

he may designate. 

(b) ~Each member of the Industry who qualifies as prescribed in 

Section 2 of this Article shall have one vote in the nomination and 

election of the member: of the Code Authority, such nomination and 

election to be arranged by the proponents of the. Code ,~ithin ~ne 

month of the effectiYe elate thereof, unless otherwise pr-ov1decl with 

the approval of the Administrator. In the interim, the Code Committee of the Sanitary Napkin and Cleansing Ti sue Association shall 

act in this capa ity. In order that the Code Authority shall at all 

times be truly r presentatiYe of the Industry and in other respects 

comply with the pro,1 i ·ion · of the Act, the Administrator may pro-
65 

vide such hearings as he may deem proper, and thereafter if he 

shall find that the Code Authority is not truly representative or does 

not in other respects comply with the provisions of the Act, may 

require an appropriate modification in the method of selection of the 

Code Authority. 

( c) The Code Authority shall coordinate the administration of 

this Code with such Codes, if any, as may affect any division or subdivision of this or a kindred Industry, with a view to promoting 

joint action upon matters of common interest. 

( d) Each indu trial 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 Admini trator true copies of its Articles of Association, By-Laws, Regulations, and any amendments when made 

thereto, together with such other information a to membership, organization, and activities as the Administrator may deem neces ary 

to effectuate the purposes of the Act. 

2. Members of the Industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority, to participate in the selection of the members thereof and to use the N.R.A. 

Code insignia by assenting to and complying with the requirements 

of this Code and sustaining their reasonable share of the e:xpen es of 

preparation, presentation, and administration of this Code. The 

reasonable share of such expenses shall be determined by the Code 

Authority, subject to approval by the Administrator, on the basis of 

volume of business and/ or uch other factor::; a:::. may be deemed 

equitable to be taken into consideration. 

3. The Code Authority shall have , to the extent permitted by the 

Act, the following powers and duties: 

(a) Such l:!gency may from tin-ie to time present to the Administrator recommendations based on conditions in this Industry as 

they may develop which "TT"ill tend to effectuate the operation of the 

provi ions of this Code. Such recommendation ·, upon approval by 

Administrator as provided in Article VIII, Section 2, shall become 

operatiYe as part of this Code. 

(b) Such Agency shall receiYe complaints of violations of this 

Code, make inn>.tigations thereof, and bring to the attention of the 

Administrator recommendations and information relatin~ thereto 

for uch action as in hi discretion the fact · ,Yarrant. 

( c) Members of the Industry shall .file with the Code Authority 

at such time and jn such manner as may be pre~crib2cl, statistics 

covering number of employee,· , "TT"age ra:e , employee earning., hours 

of work, and sud1 other data as may be required by the 

Administrator. 

(cl) Every member of the Incln.-try !-hail com pile and fon,·ard 

to the Code Authority a complete li t of item: shO',Ying all price , 

term and di count to this clas~ of trade. 

( e) As soon as practicable the Code Authority :--ball recommend a 

method of deter1uining co t of production and shall formulate regulations for its application, such method and regulation. upon approval 

by the Admini -trator a.- provided in Article YIII, Section 2, .-hall 

become operative as part of thi Codt>. In formulating such regulations, the Code Authority ·hall take into con iclerntion the nece sity of 
66 

selling belo" cost to meet competition, to dispose of discontinued 

lines and seconds and other pertinent factors. 

(f) Standard trade custom for the Industry (including deliveries, contracts, sales on consignment, cash discount terms, quantity 

price, standardization features, and sales of seconds) hall be for- mulated by the Code Authority; subject to the approval of the Admini trator after due notice and hearing, they shall be binding upon 

every member of the Industry. 

(g) The Code Authority shall make a study of conditions in the 

Industry to determine the fea ibility of the adoption of a shorter 

working week and shall, within three (3) months after the effective 

date of this Code, make a report of its findings to the Admini trator. The Code Authority shall also submit to the Administrator 

within six (6) months after the effective date of this Code, a plan . for the tabilization and regularization of employment. 

(h) If it shall be represented to the Administrator by any interested party, or he shall determine upon his own motion, that any 

action of the Code Authority, or of any subdi, ision Code Authority: 

is unfair to any private interest or contrary to the public interest, 

the Administrator may require that such action be suspended for a 

period of not to exceed thirty (30) day to afford an opportunity 

for inYestigation of the merits of such complaint and further consideration by the Code Authority pending final action, to be taken 

only upon approval by the Administrator. 

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

Code Authority, there shall be furnished to the Government agencies 

such stati tical information as the Admini trator may deem necessary 

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

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for member of the Industry and are prohibited: 

(a) False Marking or Branding.-The false marking or branding of any product of the Industry which has the tendency to mislead 

or deceiYe customers or prospecti, e customers, whether as to the 

grade, quality, quantity, sub tance 7 character, nature, origin, size, 

finish, or preparation of any product of the Industry, or otherwise. 

(b) Secret R ebates.-The secret payment or allowance of rebates, 

refunds, commissions, credits, or unearned discounts, whether in the 

form of money or otherwise, or the secret extension to certain purchasers of special ser ices or pri, ileges not extended to all purchasers 

on like terms and conditions. 

( c) 001nm.ercial B1~ibery.-No member of the Industry shall give, 

permit to be given, or directly offer to give, anything of value for 

the purpose of influencing or rewarding the action of any employee, 

agent, or representative of another in relation to the business of the 

employer of . uch employee, the principal of such agent or the 

repre ented party, without the knowledge of such employer, principal, or party. Commercial bribery provisions hall not be con- strued to prohibit free and general distribution of articles commonly 

used for adYerti ing except so far a such articles are actually used 

for commercial bribery as hereinabove defined. 
67 

(d) Interference with Contractual Relatfons.-Maliciously inducing or attempting to induce the breach of an existing oral or 

written contract between a competitor and hi,s customer or source 

of supply, or interfering with or obstructing the perfonnance of 

any such contractual duties or services. 

( e) Defamation.-The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations or by the false disparagement of the grade or quality of their 

goods. 

(£) hnitation of Trade Mark 01· Trade Nmne OJ' Style Piracy.-

The imitation of trade marks, trade names, slogans, or other marks 

of identification of competitors, having a tendency and capacity to 

mislead or deceive purchasers or prospective purchasers. 

(g) Price Discriniination;-Any discrimination in price between 

purchasers of the same class (not including discrimination in price 

on account of difference in grade, quality, or quantity of the product 

sold, or which makes only clue allowances for difference in cost of 

selling and transportation) or discrimination in price in the same or 

different communities not made in good faith to meet competition. 

(h) Mis1·ep1·esentation or False or Misleading Adve1·tising.-The 

making or causing, or knowingly permitting to be made or published 

any false: materially inaccurate, or deceptive statement by way of 

advertisement or otherwise, whether concerning the grade, quality, 

quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Industry, or the credit terms, values, policies, or services of any member of the Industry, or otherwise, having 

the tendency or capacity to mislead or deceive customers or prospective customers. 

(i) Reqitiring Chain Purchases.-To sell any product or products 

on condition that the purchaser ~ill also purchase another product 

or products made or sold by the same member of the Industry; or 

to sell such product or products at reduced prices or on special terms 

or under special conditions to induce the buyer to purchase such 

other product or products. Each member of the Industry shall sell 

each different line of merchandise independently and shall not cut 

the price of one with the provision that other lines be purchased 

or require a purchaser to purchase one class of merchandise as a 

consideration for being allowed to purchase another. Thi.· regulation does not govern the distribution of bona fide samples. 

(j) All sales shall be made strictly in accordance -n~ith such price 

lists as provided for in Article VI, Section 3 (cl). 

(k) Except under regulations established in Article VI, Section 

3 ( e) it shall be a prohibited unfair method of competition for members of the Industry to sell any of their products below their cost 

of production except in accordance with such regulations. 

ARTICLE VIII-MODIFICATION 

1. Thi.· Code and all the pro vi ions thereof are exp res ly made 

subject to the right of the Presi lent, in accordance with the provisions of sub ·ection (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, ap-
68 

proval, license, rule, or regulation i. sued under Title I of said Act, 

and specifically. but without limitation, to the right of the President 

to cancel or modify hi. approval of thi Code or any conditions imposed by him upon his approval thereof. 

2. After due notice and hearing thi Code may be amended upon 

a reconunendation of the Code Authority or any intere ted party or 

group or upon the Administrator's own notice. anc.l any modifications so arrived at hall be effective when approved by the Administrator. 

ARTICLE IX-MONOPOLIES 

No provision of thi. Code shall be so applied as to permit monopolies or monopoli tic practices: or to eliminate oppre s, or discriminate against small enterprise . 

ARTICLE X-PRICE lNCREA ES 

Whereas the policy of the Act to increa e real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly a wages, it is recog11izecl that price increases shall be delayed and that, when made, the ame should, so 

far as rea onably possible, be limited to actual increases in the seller's 

costs. 

ARTICLE XI-EFFECTI\'"E DATE 

This Code hall become effectiYe on the seventh day after elate. 

Approved Code No. 200. 

Registry No. 299B-30. 

0