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3 1262 08486 7950 Registry No. 281-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF F ... t\.IR COMPETITION 

FOR THE 

VELVET INDUSTRY 

AS APPROVED ON DECEMBER 30, 1933 

BY 

PRESIDENT ROOSEVELT 

, •. 0 : 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRIN1ING OFFICE 

WASHINGTON : 193-i 

r 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
(['his publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and hy district offices of the Bureau of 

Foreign and Domesti Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atla nta , Ga.: 504 Po t Office Building. 

Birmingham, Ala. : 257 F ederal Building. 

Boston, Ma s.: 1801 ustomhouse. 

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

Charle ·ton, ,S.C. : hamber of Commerce Building. 

Chicngo. Ill.: Suite 1706. 201 North Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Ch amber of Commerce Building. 

Detroit, Mich. : 2213 First National Bank Building. 

H ouston, Tex. : Chamber of Commerce Building. India navoli.·, Ind.: Chamber of Commerce Building. 

Jack ··om·ilJe, Fla. : Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. Lo~ AngeleE= . Calif. : 116H South Broadway. 

LouisY ille, Ky.: 408 Federal Building. 

Memphi ·. T(>nn. : 229 Federal Building. 

Minneapolis, Minn .: 113 Federal Building. 

Nen· Orleans. La.: Room 225-A. Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Ya.: 406 East Plume Street. 

Philadelphia. Pa.: 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

P ortland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 188 

CODE OF FAIR COMPETITION 

FOR THE 

VELVET INDUSTRY 

As Approved on Dec-ember 30, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An applicatjon 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 approYal of a Code 

of Fair Competition for the \ elvet Industry, and hearings having 

been held thereon and the Administrator having rendered his report 

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 proYi:ion of Title I 

of said Act and that the requirements of clauses (1) and (2) of 

subse ·tion (a) of Section 3 of the said Act have been met: 

NOvV. THEREFORE, I, Franklin D. Roo evelt. President of the 

United State. , pursuant to the authority ve ted in me by Title I of 

the National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, clo adopt and approve the report, recommendations and 

findin~s of the Administrator and do order that the said Code of 

Fair competition be and it is hereby approved. 

FRANI~LIN D. ROOSEVELT. 

Approval recommended: 

HcGI-r S. JoHNSON, 

Adminish·ator. 

THE '' IIITE I-IousE, 

December 30, 1938. (539) 
The PRESIDENT, 

DECEMBER 21, 1933. 

The l¥ hite H O'USe. 

SIR: This is a report on the hearing on the Code of Fair Competition for the Velvet Industry, held in the Auditorium of the Department of Commerce Buildino-, on November 8 1933. The Code which 

i attached was presented by duly qualified and authorized representatives of the indu try, complying with statutory requirements, 

said to repre ent over 90 percent by volume of production and 12 

out of 13 concerns in the industry. 

In accordance with the customary procedure every person who 

had filed a reque t for an appearance was freely heard in public, and 

all statutory and regulatory requin~ments were complied wjth. 

THE IND STRY 

The indu try compri es 14 concerns owning over 3,000 looms and 

having an inve tment in 1933 of $13,555,375. In 1929 the industry 

provided employment for 4,653 full-time workers. This figure has 

declined to 2,863 worker in 1933. The aggregate annual . ales have 

fallen from 9,703,192 yards in 1929 to 3 306,458 yards for the first 

6 months of 1933. 

PHOYI ION OF THE CODE 

The Code provides for a minimum wage of $13.00 a week. Learners, not exceeding 5% of the total number of employees, may be paid 

not less than 80% of the minimum wage during the first 6 months 

of their employment. Hours are limited to 40 hours :for any one 

week and 8 hours in any 24-hour period, with the following exceptions: watchmen are permitted to work 56 hour. per w ek · employee. in a supervi ory capacity receiving $35.00 per week or more, 

and outside salesmen are not limited as to hours; employees on 

emergency repair work are excepted but are to be paid time and 

one third :for hour worked in excess of 40 hours per weeki office 

employees are permitted to work 48 hours in any one week provided they do not work more than 40 hours per week averaged over 

a period o:f 3 months. Operations are limited to 2 shifts of 40 

hour each. Hours o:f work have been reduced :from 48 to 40 and 

employment i thereby increa ed in the same proportion. 

Wage rates :for piece and/ or hourly workers are to be at lea t 

20% in excess of the average rates prevailing on June 26, 1933. 

Existing differentials between wage above the minimum ar€' maintained and no employee i. to receive le s compen .. ation for the 

4-0-hour week than was received before June 26 1933. 

Repre entation on the Code Authority i provided for all members 

of the industry. 

(540) 

• 
541 

There are no highly re!::'tricbve provi~ions in th Code it ·elf. Provision is made for r ecommendati on · bv th e Code Anthoritv to the 

Administrator for licen ing all ne\\· installations of prncluctive machinery. No such provision, ho\Yever, '"ill become effective -n·ithout 

further approval of the Admini trator. 

There· 1vas some question as to \Yhethcr or 110t th Yel ·c·t I nd ustry 

is entitled to operate under a separate Colle. After hea ring the 

evidence and the advice of the Inch1 trial ..Ac1Yisor it IYH S cletidecl 

to permit the indu try to operate nncler this Code for a tri <1 1 period 

of 6 months. At the end of thi time the que tion of a Code for 

thi indu try IYill be re(:on ·iclered. 

~1emb s of the industry wi heel to include the dyeing and finishing operations within the proYi ions of thi::; Co lc and protested 

again t operati11g under th e Rayon and Silk Dyeing and Printing 

Indu try Code. This prote t IYas based largely on the restrictions 

on the number of hours which procluctiYe machinery may be operated under the Dyeing and Printing C'oc.le. This objection was 

overcome by al " 'illg the provisions of the Dyeing and Printing Code 

to permit memver · of the Yeh·et Indn. -try to operate prodn ti \'e 

machinery extra honrs during peak sea .. ons. 

FIKDIXG. 

I find that: 

(a) This Code c01nplies in all re.-pect · with the pertinent provisions of Title I qf the National Industrial RecO\·ery \.ct, inc] ucbng 

without limitation Subsection (a) of Se tion 7 and Subsection (b) 

of Section 10 thereof, and further provides for the r eportin g of any 

statistical information lE•.-ired by the Administrator. 

(b) The Velvet ~fanufa turer. Association is truly r epr esentative 

of the Yeh et Industry. The Articles of Association provide no 

inequitable restrictions to member hip. 

(c) The Code is not lcsigned to promote monopolies or to eliminate or oppre · small enterprises and will not operate to discriminate 

against them and will t end to effectuate the policy of Title I of the 

National Inuustrial Recovery Act. 

(d) The wages specified in thi.- ode are sub tantially higher than 

those prevailing prior to J Uil e 16 1933. 

(e) The trade practices haYe the support of the members of the 

industry anl will act to increase uniformity of practice. 

I recommend that the Code be approYecl. 

Respectfully, 

HcGH S. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

VEL VET INDUSTRY 

ARTICLE I-P"CRPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act the following provisions are e tablished as a Code of 

Fair Competition for the Velvet Indu try, and shall be the standard 

of fair competition for such industry and shall be binding upon every 

member thereof. 

ARTICLE II-DEFINITIONS 

1. The term ' Velvet Indu try' as used herein i defined to mean 

the production and distribution of Yelvet by employer operating 

velvet looms, excluding such proces ·e a are covered by the provision of the Rayon and Silk Dyeing and Printing Industry Code. 

2. The term "velvet ' as u eel in this Code is defined to mean a 

pile fabric woven in top and bottom pieces connected by pile warp 

threads automatically cut on the loom to create the pile, including 

1nillinery, cor et box, and artificial flmver plush but excluding all 

other plu, hes and excluding pile fabric · governed by the provisions 

of the Upholstery and Drapery Textile Inlustry Code. 

3. The term ''member of the Industry " include anyone engaged 

in the Industry, either as an emplo~ er or on his own behalf. 

4. The tern1 ' employee ' is defined to mean anyone recei,ing compen. ation for hi services in aid indu. try. 

5. The term employer ' a · u ed herein is defined to mean anyone 

by 'vhom any uch employee i compensated or employed. 

6. The term •· Productive machinery " a used herein i · defined 

to mean Yelvet looms. 

7. The term "Association ' is defined to mean the Yelvet ~Ianufacturers A sociation. 

8. The terms 'President', ''Act', and ''ALbninistrator' as used 

herein shall mean respectively the President of the United States, 

the National Indust1·ial Recovery Act, and the Administrator for 

InLlustrial Recovery. · 

9. The term ' Code Authority '' i defined to mean the Committee 

described in Article VI. 

AnTICLE III- Houns OF LABOR 

1. No employee hall be p rmittecl to work in exce · of -!0 hours 

in any one week or 8 hours in any 24-hour period, with the following 

exception : 

(a) Employees earning $35.00 per week or over and erYii~g a 

executives, uperintendent foremen super i ory staff, a lv1 ory 

engineers, or technician , and out ide sale. men. 

(542) 
543 

(b) Watchmen, who may be permitted to work not in excess of 

56 hours in any one week. 

(c) Office employee who mav be permitted to work an average of 

40 hours a week over each perio l of thre" month. ·, provided they do 

not work more than -±8 hour in any one week. 

(d) Any employee on emergency repair work involving breakdowns, or protection of life, or property, but in any such special 

cases one and one third times his normal rate hall be paid for hours 

worked in excess of forty hours. At least once a month and either 

at the end of each accounting period or at the end of each calendar 

month, every emplo3re r shall report to the Code Authority, in such 

detail as may be required, the number of employees and the number 

of hours so worked by each employee in that period. 

2. No employee shall be permitted to work in excess of the prescribed maximum hours, even ·when ''orh:ing for more than one 

employer. 

AnnCLE IY-"T AGES 

1. No employee . hall be paid at a rate le s than $13 a week, except 

that employees learning the trade and not exceedina five percent 

( 5%) of the total number of employees, may be paid not less than 

80% of the minimum <luring the first ix week of their learning 

period. 

2. vVage rates for piece and/ or hourly workers shall be at least 

20% in excess of the average rates prevailing on June 26, 1933. "T eekly worker shall not receive les. pay for forty ( 40) hour. · than 

they received for the prevailing work-week prior to June 26, 1933. 

Differenbals in amount a they existed prior to June 26, 1933, between workers receiving minimum pay and workers in the higherpaid classes, shall be maintained. 

:1. The provisions of this Article apply. regardless of whether an 

employee is compen ated on a time-rate, piecework. or other ba sis. 

4. Female employee shall receive the same rates of pay as male 

employees for substantially the same work. 

ARTICLE V-GEXEHAL LABOR PHOYISIONS 

1. No person under 16 years of age shall be employed 1n the 

Industry. 

2. Within each State members of the Industry shall comply with 

a.ny laws of such State imposing more stringent requirements than 

this Code a to wages, hours of work, health fire, age of employees, 

or general working conditions. 

3. Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interferenc , restraint, or coercion of employers of 

labor or their agents, in the designation of such representatives or in 

self-organization or in other conc-erted activities for the purpo e of 

collective bargaining or other mutual aid or protection. 

4. No employee and no one seeking employment shall be required 

as a condition of employment to join any compan~r union or t() l'efrain from joining, organizing or as i ting a labor organization of 

his own choosing. 
5-l± 

5. Employers ~· hall comply with the maximum hours of labor, 

minimum rate.· of pay. nnd other conditions of employment approve l or prescribed by the Presi lent. 

6. Each employer ~hall po ·t in cmLpicuous places in his plant full 

co pie · of thi. · Code. 

AnnCLE VI- \.oMINISTRATION 

1. There shall L a Code Authoritv constituted as follmYs: 

(a) Five (5) per· ons elected by 'the Indn .. try at a meeting held 

in New York City anJ duly noticed by the Association for that purpose to all members of the Industry by a ten days' written notice. 

At such meeting each member of the Industry who shall haYe agreed 

to bear hi proportionate share of expense in accordance with Section 6 of thi Article shall be entitled to at least five votes and an 

additional five vote for each loom in excess of 1 loom as shown by 

the inventory on file with the Code Authority; provided, hmYeYer, 

that no member shall be entitled to more than 1,500 votes. Each 

member may ca t all of uch votes for a single member of the Code 

Authority or may distribute them among two or more, a he may 

see fit. The five person receiving a plurality vote shall bo decl~ned 

elected and their tenure of office hall be for the term of one year. 

Vacancie occurrinn· in the Code Authority shall be filled by a vote 

of the Industry at a meeting called for that purpose. On the complaint of any member of the Industry the regularity of such election shall be subject to review by the Administrator. 

(b) At the option of the Administrator, additional representatives not exceeding three to be appointed by the Admini trator, but 

without vote and without expense to the Industry. 

~- The Code Authority shall have the following duties and powers 

to the extent permitted by the Act, subject to the right of the Admini tr·ator on review to veto any action taken by it: 

(a) To administer pro vi. ·ions of the Code on behalf of the Industry; to consider propo als for amendment of the Code, and 

exceptions thereto; and to make rules and regulations ncce ary or 

proper to carry out such powers a. are pecifically crranted under 

this code. 

(b) To require, from time to time from all members such reports 

in such forn1 as, in its judgment, may be deemed useful, to guide it 

in the proper administration of the Code including reports as to 

production, production facilities and capacity, machine hours operated, number and classes of employees, hours of employment of labor, 

wage , stocks on hand, prices and terms of all ales, and any reasonable information relative to the manufacture ale, shipment, or 

con. ·ignment of merchandise, and the term thereof. 

All information, statements, and reports required by the Committee shall be kept confidential, and shall be aYailable only to the tatistician of the Code Authority and the representatives of the Government, except ]nsofar as the~ Code Authority shall direct the preparation and distribution of composite reports of unidentified figures 

for the general benefit of the Indu try. 

(c) To e tabli. h a ·uniform 'J'· tem of co t finding, and, when 

approved by the Administrator, to rrquire every member of the 

Industry to keep records ·ufficiently Jetaile l for that purpose. 
545 

(d) To establish rules and regulations ubject to the approntl of 

the Administrator for the disposal of di ·tre ·~ merchandise, seconds, 

rejected or damaged goods in such a way a · to protect the owners 

thereof and cause the lea t po sible disturbance to the stability and 

sound condition of the Industry. 

3. The Code Authority may from time to time present to the 

Administrator recommendations bu ·ed on condition· in thi · Industry which will tend to effectuate the operation of the provisions of 

the Code. Such recommendation , v~ hen approYed by the Administrator, after such notice and hearing as he shall specify hall baye 

the same force and effect a. · any pro vi ions of this Code. 

4. It is contemplated that pursuant to Section 3 of thi Article 

the Code Authority may ubmit a recommendation that prior to the 

installation of additional productive machinery (excluding replacement of velvet looms by looms of the same width) a certificate shall 

be secured from the Administrator that uch installation hall be 

consistent with effectuatinf! the policy of the National Industrial 

RecoYery Art during the period of the emergency, provided that due 

notice of hearing on snch application be gi--ren the Code Authority 

with full dght to be heard. 

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

Code Anthority, there shall be furnished to government agencies 

such statistical information a the Administrator may deem necessary for the purpose recited in Section 3 (a) of the Act. 

6. The reasonable expen 'e.· of the Admini tration of the Code 

shall be borne by those members of the industry who authorized 

the submission of this Code and those who agree in writing to bear 

their share thereof; and such expen es shall be prorated by the Code 

Authority among such members on the basis of wages paid to 

employees provided that in any event a yearly minimum of $100 

shall be charged each such member. 

ARTICLE VII-UNFAIR TRADE PRACTICES 

A violation of any of the following provisions by a member of the 

Industry hall constitute an unfair method of competition and a 

violation of the Code: 

1. All members of the Industry shall require that contract be 

confirmed in writing, except for order of ten pieces or lee: , involving a delivery of merchandise for which date of delivery is less than 

three days and except for out-of-town orders for immediate delivery 

where the purchaser by wire or letter agrees to conform to uniform 

VelYet Industry contracts. 

2. All records, documents, and book entries shall accurately reflect 

all sale and terms thereof, and any modification thereof. 

3. Each seller shall afford equal terms, prices, and advantages 

to all buyers similarly situated, and shall permit no unfair discrimination to be made in merchandising terms, prices, or practice . 4. 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 emp!oyer of such em-
546 

ployee, the principal of nch agent or the repre ·ented party, without 

the knowledge of such employer, principal, or party. This provision 

shall not be con trued to prohibit free and general distribution of 

articles commonly used for advertising except so far a such articles 

are actually used for commercial bribery as hereinabove defined. 

5. Neither purcha:;er nor pro pective purchasers, directly or 

through their employee . hall be allowed any commissions, bonuses, 

rebate·, deductions, allo"·ances, except for damaged goods, subsidies, 

or pri,·ilege. of any kind, "hether in the form of money, en·ices, 

or otherwi e, excepting insofar as the operation of this Section or 

any part thereof may be suspen led by the Code Authority. This 

provision shall not be con trued to prohibit free and general distribution of articles commonly used for advertising. 

6. Selling terms shall not exceed net seventy days, t"o percent 

fifteen day , and no unearned discounts shall be allowed. 

7. If and when the Code Authority shall prescribe a uniform form 

of contract ap/proved by the Administrator, all sales shall conform 

thereto. 

8. No velvet shall bo shipped on memorandum or consignment by 

any member of the Industry except to his duly accredited agent for 

sale. 

9. No original design \\OYen or printed, created in the United 

State . may be copied or reproduced in a form which is u:fficiently 

like the original design to be mistaken for it, except with the written 

con. ent of the producer, provided such original design shall have 

been previou.Jy rf'gistered in the United States Patent Office or 

any other office or bureau approv d by the Code Authority and the 

Admini~;:trator. 

10. No member of the Indu try hall falsely mark or brand any 

product of the Indu try in a way that tends to mislead or deceive 

customer.· or pro pecti' e en tamers, whether as to the grade, quality, 

quantity, sub tance, nature, origin, ize, finish, or preparation of any 

product of the Industry, . or otherwise. 

ARTICLE VIII-PRODC TIVE l\fACHIXERY 

1. Productive machinery hall not be operated more than bYo . hi.fts 

of forty ( 40) ho~1rs in each week. 

2. "'\iVithin ten days after the effective date of this Code, members 

of the Industry shall file with the Code Authority a complete 

inventory of productiYe machinery actually installed or then under 

contract. 

3. On and after January 1, 1934, members of the Industry hall file 

with the Code Authority a monthly inYentory of all additional productive machinery installed, purcha eel, or under contract, wheth r 

for replacement, expansion, or otherwise, and pecifying which of 

said machines are for replacement and which are for expan ion. 

ARTICLE IX-MODIFICATION OR CAXCELLATIO~ 

1. Thi Code and all the provision. thereof are expre ly made 

subject to the right of the Pre ident. in accordance with th provisions of sub ection (b) of Section 10 of the National In lu trial 
547 

Recovery Act, from 6me to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of aid Act. 

2. This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circumstances, such 

modifications to be based upon recommendations by the Code Authority to the Administrator, and to become effective on approval 

of the President. 

ARTICLE X-EFFECTIVE DATE AND ExPIRATION DATE 

This Code shall become effective on the second Monday after iU, 

approval by the President. It shall continue in effect for a period 

of six (6) months after such effective date and may be further extended upon the application of the Code Authority approved by the 

Administrator. · 

Approved C(){]e No. 188. 

Registry No. 281-1-01. 

0