BOSTON PUBLIC LIBRARY
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3 9999 06542 030 7
OFFICE OF NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
THE CONTENT OF NIRA ADMINISTRATIVE LEGISLATION
PART F: A TYPE CASE: THE COTTON TEXTILE CODE
By
Ruth Aull
./
WORK MATERIALS NO. 35
Work Materials No. 35 falls into the following parts:
Part A
Part B
Part C
Part D
Part E
Part F
Executive and Administrative Orders
Labor Provisions in the Codes
Trade Practice Provisions in the Codes
Administrative Provisions in the Codes
Agreements Under Sections 4(a) and 7(b)
A Type Case: The Cotton Textile Code
Special Studies Section
February. 1936
■^
OFFICE OF IJATIOIvTAL 3EC0VEHY Am; I WIS TEAT I Oil
DIVISION OF KEVIEW
TlIE OOIiTMT OF IIIEA AI).,J1JIST:IA.TIVE LEGISLATION
PART P: A TYPE CASS: THE COTTOII TEXTILE CODE.
By
Eat:.! Aull
Special Studies Section
Fe"bru8,ry, 1936
9721
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FOREWORD
Tlio o'hQeci of this stucV is to set forth in convevenicnt form the
su "bstaiitive content of administrative legislation under the authority
of Title I of the National Industrial Recovery Act as found in the or-
ders, codes and agreements. Part A, prepared hy Ruth Aull , is concerned
with Executive and Administrative Orders and, in some cases. Office Or-
ders and I.iemoranda, legislative in nature; Part B, prepared hy Ruth
Reticker, with the lahor provisions in the codes; Part C, prepared hy
Daniel S. Gerig, Jr. and Beatrice Strashurger, with the trade practice
previsions in the codes; Part D, prepared hy C. W. Putnam, with the ad-
ministrative provisions in the codes; Part E, prepared "by Ruth AiJ-l,
with the provisions of agreements under Sections 4 (a) and 7 (h); and
Part F, prepared hy Ruth Aull, with a type case: the Cotton Textile Code.
The vrork under the general charge of G C Gamhlc, Coordinator of the
Special Studies Section.
Title I of the national Industrial Recovery Act delegated to the
President unpreceden ted powers vdth respect to regulation of industry
and trade. The theory of the Act was that through the sponsorship of
codes "by trade or ind.ustrial associations or groups, and through volun-
tary agreemen ts, such regulation would he cooperative v;ith industry and
trade.
By Section 2 (h) of the Act the President was authorized to dele-
gate any of his functions and powers to such officers, agents, and em-
ployees as he might designate or appoint. This power of delegation was
widely exercised and through the a,dmini strati vc activities of the
National Recovery Administra,tion, estahlished hy the President under
Section 2 (a) of the Act, 557 so-called, industry or trade codes and 188
codes supplementary to the hasic codes came into heing. These codes
were approved under the authority of Section 3 ( a) of the Act. In addi-
tion a smaller hut none-the-loss considerahle nuiTiter of agreements was
entered into under Sections 4 (a) and 7 (h) exclusive of the President's
Reemployment Agreement, hased on Section 4 (a), which was "accepted"
hy more than 2,000,000 employers. The codes were to he as hinding as
any Act of the Congress, and the codc-malcing adi'nini strati ve processes
under the Act i:ay aptly he descrihed as suh-legislative . .
The Supreme Court in its decision oil, the Schecter case, which
terminated the existence of the codes, referred to the legislative as-
pects of the code-making process in saying:
"It ( the statu tory plan) involves the coercive exercise
of the law-making power. The codes of fair competition
which the statute attempts to authorize are codes of laws.
If valid, they place all persons within their reach under
the ohligation of positive law, hinding equally those who
as sen t and those who do not assent."
The agreements entered into under the Act, at least with respect to
the adiHini strati ve steps leading to approval, were less clearly legis-
lative, hut the agreements under hoth Sections 4 (a) and 7 (h) consti-
tuted,., to the extent they were used, the detailed and sauhstantive
9721 -i-
13 My 3&g
expression of tlie legislative intent, furthermore, the position .taken
■by the national Recovery Aciministration t]\at the phrase "same effect as
a code of fair competition" used in Section 7 (h) referred to the fact
■ that the agreement when approved should. carry the penalty prbvisio^ns; of
the Act, would, if sustained, give such agreements Icr^lslative -aspec'.ts
identical vdth those of the codes. ' ■ .. ,. j ,,- .'.'.;■
In the administration of the hational Indxistri'al Hccovery Act -many
orders were issued which affected the actions or interests of persons
not connected v/ith the National Hecovery Administration or affected the
provisions of codes The Executive Oners issued hy the President and
the Administrative Orders issued hy the Ac'ministrator for Industrial Re-
covery or in the naime of the Rational Industrial Recovery Board hearing
on the administration of Title I of the. Act were, with a few exceptions,
issued under the authority of the Act itself or under the delegation of
power permitted hy Section 2 (h) . A substantial percentage of such or-
ders, through the nature of their provisions, were legislative. Within
the KFational Recovery Adjministra,tion Office Orders or Office Hemoranda
were issued primarily as instructions to or for the gaidajice of the per-
sonnel of the organization or for the purpose of cstahlishing parts of
the organisation. So-ie of these orders nevertheless contained provisions
or requirements which directly affected code provisions cr indicated re-
quirements upon memhers of industry aiid in their scope seemingly may he
called legislative in nature.
It will "do observed tha.t the provisions of tiie hational Industrial
Recovery Act constituted a ver.7 sinall portion indeed of the groat volume
of administrative legislation ui-ider the Act. Tl'ie su hstancc of the ad-
ministrative legislation is .to he found in documents formulated from
various types of administrative action.
The study is not concerned with evaluation of this administrative
legislation; it is not concerned with evaluation of its consequences.
Such issues are treated in other studies. This study is confined to a
statement of the content of the IIIRA •ad-'iinistrativc legislation.
At the hack of this report a hricf statement of the studies under-
taken hy the Division of Review will he found.
■■ ■' L. C. Marshall
Director, Division of Review
February 29, 1936
9721
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K3_C_roT^-^TT_0I':.JTIlA,ia>JXIS.TiiATAm
PAST F -A TYP3 CASE: TTT] COTTOH TEXTILE CODE
TABLE OF COSiTEETS p^^e
Introduction -'■
Cliapter I... Summary of the Cotton Textile Code as
originally approved • 2
Chapter II . . Definitions - Section I . . . . 7
Chapter III. Liinim-uin Wage - Section II 12
Chapter IV. . Maxim-um Hours of Employees and Productive
Machinery - Section III 16
Chapter V. . . Child Lal3or - Section IV 32
Chapter VI . . Statistical Reports - Section V 33
Chapter VII . The Code Authority - Section VI 37
Chapter VIII! Adjustment of Contracts Costs -
Section VII 42
Chapter IX.. Mandatory Provisions of the Act -
Sections VIII and IX 43
Chapter X. . . i^odifi cation of Cndc - Section X 44
Chapter XI.. Oi,7nership of v;ill Villac\e Iloaies -
Section XI '. 45
Chapter XII' Office Employees - Section XII 46
Chapter XIII Wage Differentials - Section XIII ^"^
Chapter X IV.Maximun Hours - Repair Shop Crews, etc.,
Section XIV 48
Chapter XV. . Work Assignment - Sections XV and XVII 49
Chapter XVI Length of Operation of Code 55
Chapter XVII Synthetic Fiher production -
Section XVIII 56
Chapter XVIII Supplementary axid. Divisional Codes 57
Appendix I.., Trade Practices &overninr; the
Merchandising of Carded Cotton Yarn 58
9721 -iii-
TABLE or CQg'ISlM-TS
(Cont'd)
Page
Appendix II.. Supplementary Code of ?air Co-npctition
for the Cotton Converting Inductry 63
Appendix III.. Fair Trade Practices Governing the
LierchandiGing of the Products of the
Cotton Thread Manufacturin.';; Branch 77
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INT20DUCTI01T
Tliis pe.rt of tlie study ^scts forth the changing suhstantivo content
of the Cotton Textile Code from the date of its original approval -
July 9, 1933 - to May 27, 1935, v/hen the Supreme Court's decision in the
Schechter case suspended the operation of all codes In addition to des-
crihing the changes wrought in the code through the adrainistrative pro-
cesses of conditions in the order of approval, amendments, exemptions and
stays, the effect of general Executive and Adniinistrative Orders on spe-
cific sections of the code is also shown. Interpretations of provisions
of the code a^re Likewise included; however, explanations or interpreta-
tions issued "by the code authority are not included ina,smuch as they
were not authorized ty the code and therefore cannot he considered as
part of iTI?>A administrative legislation.
The selection of the Cotton Textile Code to typify, in a sense, the
changing of "body of "laws"[ that constituted a code wa^s not entirely for-
tuitous. This code was the first approved under the ha.tional Industrial
Eecoverj'' Act and therefore its provisions had the force of estahlished
precedent in negotiations for suhsequent codes; its administration neces-
sitated the issuance of 137 orders under the code, hence it may "be des-
cribed a.s a fairly "active" code, although not the most active; further-
more, these orders included the various tjrpes of administrative action
which are to he found in the administration of ajiy code.
9721
CHAPTE?. I
S-ummar:,^ of the Cotton Textile Code cs Ori>?iiirIl:- ■^-JDro-yed.
The code for the Cotton Textile Industy, the first Vik code, as
approved on J\il3'- 9, 1933, raav he siumr ri'zed ps follo'-Ts;
Section I defined the industr/- to rnern the manufacture of cotton
yarn and/ or cotton woven fabrics, rhether ar a final process or as a
part of a larger or further "orocess. "Enplo^-ees" ^t&s defined to mean
all persons employed in the conduct of such operations and "productive
machinery" to mean spinninj^ spindles and/ or looms.
Section II provided a minimtun v.-a,-;e of 512 per week in the South
and $13 per '"'eek in the nortn except for learners d.uring a six \7eeks'
spprecticeship and for cleaners and outside em^^loyees.
Section III provid.ed for a 40-hour work week and a machine work
week of to shifts of 40 hours each and excepted re"oair shop crews, engineers,
aLe_ctriciErB, firemen, office and supervisor3'- staff, shipping, watching and
outride crews, and cleaners.
Section IV abolished cnilc labor (minors under IS).
Section V tjrovided for periodical statistical reports from all mem-
bers of the Cotton Textile Industr"/ bearing on wa^'es,. hours, machinery
data., production, stocks and orders.
Section VI set up as a continuing: olannin,^ and fair practice agency
the Cotton Textile Industry Committee, or such successor committee or
committees as might thereafter be constituted, which agenc' -Tas from
time to time to malce recommendations to the Administrator concerning
further statistical reports and the ::evDin^ of uniform accounts, regis-
tration of productive machinery, chan~9s in or exemptions from provisions
of the code - such recommendations, vjhen aioproved- by the Administrator,
were to have the same force axid. ef:"ect a;: any other provisions of the
code.
Section VII constituted the Cotton Textile InCiUstr;"' Coramitee an
agency to assist in effecting adgustments o:^ contracts where costs of
executing them were increased by the application of the provisions of thie
Act to the industr'/-.
Section VIII contained the mandator"^ provisions of Section 7(a) of
the Act concerning collective brr-;al:iiing.
Section IX orovided, in accordance ^--Ith Section 10(b) of the Act,
that the code and all provisions thereof were e:-roressly subject to the
right of the President from time to tine to cancel or modif;^ his appro-
val of the code.
Section X provided for cd: si deration 0"^ the President of future
amendments at the instance of the industr,y.
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The code was approved by the President subject to the following
thirteen interpretations a.nd conditions, c,s set forth in the Executive
Order of approval;
"1. Limitations on the use of loroductive machinery shall not
appl""- to production of tire 3/arns or fabrics for rubber tires
for a period of three '"'ee'cs after this date."
This condition aioplied to Section III of the code and '"as accepted by
the Cotton Textile Industry Cominittee in its coramunice.tion of July 15,
1933,
"(2) The Planning Committee of the Industiy, provided for
in the Code, Tjill take up at once the auestion of emplovee
purchase of homes in mi 11-vil laces, es-oecielly in the
South, and will submit to the Administration before Jan-
■■aary 1st, 1934, a plan loohin^r toward eventual em.ployee
home-ownership."
This imposed an additional duty upon the a.gency for industrial self-
government set up by Section VI of tne Code. The industry committee,
however, proposed a change in this cor.dition so that it was incumbent
on the agency only to make a report on the auestion of plans for even-
tual employee o^7nership of homes in mill villages, which chpnge was ap-
proved by the President's order of July 16, 1933, and incorporsited as ..
Section XI in. the Code.
"(3) Aoproval of the minimum wa.ges proposed by the code is
not to be regarded as approval of their economic sufficiency
but is granted in the belief th.?;t, ir view of the Ir.rge increase
in vrege payments lorovided by the Code, an^'" higher minima at
this time might react to reduce consumption and employment,
and .on the understanding tha.t if and as conditions improve
the subject may be reopened with a viev.- to increasing them."
This interpretation of the approval of the minimum wages set by Section
II of the Code '"as accepted by the industry committee, July 15, 1933.
'■'-he fourth condition of the President -oreswa-r-bly referred both to
provisions concerning minimum wages an""G maximum hours and was as follov/s:
"(4) That office emplo5'-ees be included within the benefits of the
Code."
The industry committee accepted this condition on July 15, 1933, with the
follovring phraseolog3'-, which was approved oy Executive Order of Jvly 15,
1935, and incorporated as Section XII in the Code:
"On and after J'oly 31, 1933, the maximum hours of labor for of-
fice employees in the Cotton Textile Industrj;' shall be an average
of forty hours a week over each period of six months."
The committee made no mention of wages.
9721
.A_
"(5) The e:-isting amounts fe" vhich v^ges in the hif;:her-paid
classes, up to rorker? receivir'g $30 per '.''ee;.', e:^:ceed TJages
in the lo^vest -OEid class, shall os rnaintaaned. "
This condition referred inoirectl-r to Section II of the Code and was
accepted by the indtistry committee in th3 f ollovin- for:n, -'hich was ap-
Toroved hy the President on July IS, 1933, end incorpora^ted as Section
XIII!
"The amount of differences existing- prior to July 17,
1933, between the wage rates paid various classes of eraplo-^ees
(receiving more than the established minimum wage) shall not
be decrea.sed — in no event, however, shall am/ employer ■oay
any employee a wage rate '-^hich will yield a less wage for a
work week of 40 hours than such emplovee wr.s receiving for
the same class of work for the longer week of 48 hours or
more prevailing prior to July 17, 1953. It shall be a function
of the Planning and Fair Practice Agency provided for in Para-
graph 6 of the Code to observe the operation of these -orovi-
sions and recommend such further provisions as experience ma]''
indicate to be ap'oro'oria.te to effectuate their piirrjoses."
The President's sixth condition affected Section III of the Code
and '"as as follows:
"(6) '^hile the exception of repair shop crews, engineers,
electricians and watching cre'"'s from the maximum nour pro-
visions is approved, it is on tiie condition that time and
one-half be paid for overtime."
However, the industi*^/ committee did not a.ccept this condition and in-
stead thereof proposed the following which was approved by Executive
Order of Jul-^ 16, 1933, and incoroorated as Section XIV in the Code:
"On and after the effc^ctive date the maximum hour? of
labor of repair shop crews, engineers, electricians and watch-
ing crevfs in the Cotton Textile Industry'- sliall, except in case
of emergency'- work, be fort]'- hours a reek with a tolerance of
10 per cent, ^ny emergency time in an^'- mill shall be reported
monthly to the Planning and Fair Practice Agency provided for
in Paragraph 6 of the Code, through the '-'otton Textile Insti-
tute. "
The following conditions of the President related to Sections II
and III of the Code and were accepted by the industry'- committee on July
15, 1933:
"(7) Tlhile the exception of cleaners and outside workers is
approved for the present, it is on condition that the Planning
and Supervisory Committee provided "by Section 6 prepare and
submit to the Adjnini strati on, by January 1, 1934, a schedule'
of minim-um wages and of maxiim-um hours for these classesJ'.
"(8) It is interpreted that the provisions for maximum hours
9721
establish a maximum of hours of labor per veek for evei':'^ emt)loyee
covered, so that under no circiimstances will such an employee be
employed or permitted to work for any one or more employers in
the industry in the aggregate in excess of the prescribed num-
ber of hours in a single week.
"(9) It is interpreted that the provisions for a minimum wage
in this code establish a guaranteed minimum rate of pay per
hour of employment regardless of whether the emioloyee's com-
pensation is otherv.'ise based on a time rate or upon a piece vrork
performance. This is to avoid frustration of the purpose of the
code by changing from hour to piece-work rules."
The President's tentn condition, which concerned Section II of the
Code, follows:
"(lO) Until adoption of furtJier provisions of this Code neces-
sary to prevent ar^?- improper speeding up of \7ork to. the disad-
vantage of em-Dlc^ees ( "stretch- oats") and in a, manner destruc-
tive of the purposes of the aational Industrial Recovery Act,
it is reauired that any and all increases in the a.mount of work
or production required of employees -over tliat reouired on July
1, 1933, must be submitted to and approved by the agencj'- created
by section six of the code end by the ad-ministration and if not
so submitted such increases will be regarded as a prima favCie
violation of the provision f5r minimum wages."
The industry committee suggestedi the following modification of this con-
dition on July 15, 1933, which modification was approved b;7 the Presi-
dent July 16, 1953, and incorporated as Section XV in the code:
"Until adoption of further provisions of this Code that may
prove necessary to prevent anv improper speeding wo of work
(stretch-outs), no employee of any mill in the Cotton Textile
Industry shall be required to do any work in excess of the
practices as to the class of work of . such employee prevailing
on July 1, 1933, or prior to the Share-the-T7ork movement, un-
less such increase is submitted, to and SipiDroved. by the Agency
created by Section 5 of the Code and by the National Recovery
Administration."
The follov7ing condition did not relate to a, specific provision of
the code and vras not accepted by the industry'- comjnittee;
"(ll) The code will be in operation as to the whole industry
but, opportunity shall be given for administrative considera-
tion of every application of the code in particular instances
to any person directly affected, who ha.s not in person or by a
representative consented and agreed to the terms of the code.
Any such person shall be given an opportunity for a hearing
before the Adjninistration or his representa-tive, and for a
stay of the application to him of an-r provision of thei cod©
prior to incurring any liabilit'"' to the enforcement of the code
9721
against him "by an-'- of the meansprovided in the National In-
dustrial Secover]'- Act, "oending such hearing. 'At such hear- ■
ing an^r objection to the application of the code in the
specific circuTists.nces rne.v be presented 8.n6 '■■ill be heard."
In lieu thereof the follovring iDroposr.l of the industry committee
was approved by the President on July IS, 1935, and incorpora.ted as
Section XVI in the Code:
"This Code shall be in operation on and sJter the ef-
fective date as t 0 the '"/hole cotton textile industr^/ except
as an exemption from or a, stay of the application of its
provisions ms'r be granted by the Administrator to a person
applying for the sane or except as provided in an executive
order. Ho distinction shall be made in such exemptions
between persons who have .■^nd have not joined in applying
for the approval of this Code." (*)
The President's tr/elfth condition in the order of approval of July
9, 1933, was as follows:
"(12) This approval is limited to a four months' period with
the right to ask for a modification at any time and subject to
a request for renewal for another four months at any time be-
fore its expiration. "
However, the industry committee objected to this condition and it
was therefore withdravm by the President's order of July 16, 1933.
The final condition stated by the President was a.s follows and was
accepted by the industr3'' committee on Jul"^ 15, 1933:
"(l3) Section 6 of the Code is approved on condition that
the Administration be permitted, to name three members of the
Planning and Supervisor;'- Committee of the industry. Such mem-
bers shall have no vote but in all other respects shall be
members of such Planning and Suoervisor:'- Committee."
(*) In this connection attention is directed to the provisions of Exe-
cutive Order 6205-3 of July 15, 1933, which provided that the Administra-
tor might stay the applica^tion of a code to persons '.'ho had not parti-
cipated in establishing or consenting to a code if application was made
by affected persons within ten days of the effective date of the codq.
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CHAPTER II
Definitions - Section I
rollowing is Section I of the Code for the Cotton Textile In- ,
dustry as originally a;oT)roved on July 9, 1933:
"The term 'cotton textile industry' as used herein is de-
fined to mean the manufacture of cotton yarn and/ or cotton vrovsn
fabrics, whether as a final process or as a part of a la,rger or
further process. The term 'employees' as used herein shall in-
clude all .persons employed in the conduct of such operations.
The. term 'productive machinery' as used herein is defined to
mean spinning spindles, and/or looms. The term .' effective
date' as used herein is defined to be Julj^ 17, 1933, or if this
code shall not have been approved by the President two weeks
prior thereto, 'then the second Monday, after such approval.
The term 'persons' shs.ll include natioral persons, partnerships,
associations and corporations." (*) . ■
(Pollowing is a brief resume of seversJ orders placing various
textile and garment industries temporarily under the Cotton Textile .
Code pending action upon 'individual codes for each industry.., The,
sundry variations of the Cotton Textile Code agreed upon for several
industries are very briefly set forth since this study is primarily
concerned with the provisions of the Cotton Textile Code per se. )
(Executive Order 6209-A of July 21, 1933, was an agreement making
certain provisions of the Cotton Textile Code binding upon the Textile
Finishing Industry, effective July 31, 1933, and subject to cancellation
at any time without notice, except that the minimum wage was to be
$1.00 per week higher in each section of the industry than the minimum
rates approved in the Cotton Textile Code.)
(Executive Order 6209-B of July 21, 1933 was an agreement placing
the underwear and allied products industry pending approval of a code
therefor under the Code for the Cotton Textile Industry beginning
July 24, 1933. This agreement also was subject to cancellation at any
time without notice.)
(Executive Order 6221-D of July 26, 1933, was an agreement placing
pajama manufacturers under the Cotton Textile Code pending action upon
their own code. The agreement was not "to be interpreted' as per-
mitting any increase of hours over or reduction of wages below the
standards now obtaining'' e.nd was 'subject to modification or cancella-
tion at any time without notice.)
(Pending approval of a code for the industries ' represented by the
International Association of Garment Ivlanufacturers and Subdi visional
Industries thereof, Executive Order 6221-^C of July 26, 1933, was an
This section was amended August 25 and November 8, 1933 and
Augp.st 2, 1934. See pages 10 and 1''. ' '
9721
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agreemont making "binding upon them certain sections of the Cotton
Textile Code. The order further provided that employees were not to
work in excess, of 40 hours, per week and that pro.ductive machinersr was
not to be operated for more than one shift of forty hours each per week.
This agreement likewise was sulDJect' to modification or cancellation at
any time without, notice. )
(Executive Order 6227-A of July 27, 1933, was an agreement, effective
at midnight on the. date of the order, binding the members of the Cordage
and Twine Industry by the provisions of the Cotton Textile Code pending
aition on a code to be submitted, by the terms of the order, on or be-
fore August 5, 1933. ^Executive Order 1-17 of October 20,1933, modified
the previous Cordage and Twine Agreement because "in the ordinary
routine the adoTjtibn of a permanent code for the industry may be de-
layed," by providing that all eiiroloycrs were to increase the rate of
^a;y of all employees then receiving less tha.n $35 per week to not less
than 9C^ of the rates' paid by each employer or his predecessor : in
business for the same class of work in June, 1929.)
The first amendment to Section I of the Cotton Textile Code was
approved by the President on August 25, 1953, and was as follows:
"That in the definition of the term 'Cotton Textile
Industry in Section 1 of this Coae, there be inserted after
the word 'process' the follor.^ing:
'and/or manufacture of woven rayon fabrics, 18" or more in
width, the warp of which is primsirily rayon or other
synthetic fibre yarn, whether finished or unfinished'
so that the completed sentence shall read as follows:
.'The Term "Cotton Textile Industry" as used herein is
defined to mean the manufacture of cotton yarns and/or
cotton woven fabrics, whether as a final process or as a
part of a larger or further process, e»nd/or manufactijxc of
woven rayon fabrics, 18" or more in width, the warp of '
which is primarily rayon or other synthetic fibre yarn,
whether finished or unfinished.' "
The second amendment to Section I v.'as a-Q-orovod by the President
on IMovember 8, 1933, and was as follows:
"(a) There shall be added to the definition of the
term 'Cotton Textile Industry' in Section I of said Code,
the following:
9721
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and/or (3) the finishing of any of the foregoing faorics,
whether woven of cotton or rayon or other synthetic fitre
or of a mixture of a.ny of these fibres with any other
fihrcs, provided that such finishing operations are
carried on by (a) concerns engaged in the weaving of cotton
and/ or rayon or other synthetic fitre, (h) concerns en-
gaged solely in finishing cotton woven fabrics, (c)
concerns primarily equipped for and primarily engaged in
finishing cotton woven fabrics who may also be engaged in
finishing rayon and/or other synthetic fibre fabrics and/or
(4) the manufacture of sewing, crochet, embroidery, and/or
'darning, cotton thread.
so that the completed sentence shall read as follows:
The term "Cotton Textile Industry" as used herein is
defined- to mean (l) the manufacture of cotton yarns and/or
cotton woven fabrics, whether as a final process or as a
part of a larger or further process, and/ or (s) the manu-
facture of woven rayon fabrics 18*' or more in width, the
warp of which is primarily reyon or other synthetic fibre
yarn, whether finished or unfinished, and/or (S) the
finishing of any of the foregoing fabrics, whether woven
of cotton or rayon or other synthetic fibro or of a
mixture of any of these fibres with any other fibres, pro-
vided that such finishing operations are carried on by
(a) concerns engaged i r. the v/eaving of cotton and/or rayon
or other synthetic fibre, (b) concerns enga,ged solely in
finishing cotton woven fabrics, (c) concerns primarily
equipped for and primarily enga.ged in finishing cotton
woven fabrics who may also be engaged in finishing rayon
and/or other synthetic fibre fabrics and/or (4) the manu- '
facture of sewing, crochet, embroidery, and/or darning
cotton thread.
"(b) There sliall be added to the definition of 'productive
machinery' in Section I of said, Code, the following:
(3) printing machines; (4) "piece dyeing, machines; (5)
starching and/or drying machines, operating on fabrics
and not on raw stock or yarn or cotton thread where the
same are used for the major operation in the production of
plain bleached or unbleached fabrics v;hich are not dyed
or printed; (6) all machinery used for spooling, winding,
reeling, or skeining as a final process to produce cotton
thread ready for sale as a finished article; (?) cone
winding machines, reels, through tube cop machines and :
parallel tube v/inding machines used in the production of •
mercerized yarn only. . , .
so that the completed sentence shall read as follows:
The term "productive machinery" as used herein is de-
fined to mean (l) spinning spindles; (2) looms,; (S) printing
machines; (4) piece dying ma,chines; (b) starching and/or
9721
-10-
drying machines, operating on fabrics and not on rav/ stock
or yarn or cotton thread where the same are used for the
major operation in the jjroduction of plain hleachcd or un-
bleached fahrics which are not dyed or printed; (6) all
machinery used for spooling, v/inding, reeling, or skeining
as a final process to -oroduce cotton tlu'ead readj- for sale
as a finished article; (?) cone winding: machines, reels,
through tuhe cop machines and parallel tuhe winding machines
used in the production of mercerized yarn only.
"(c) There shall be added to the definition of the term
'effective date' in Section I of said Code, the follovTing:
provided that the "effective date" of the provisions of
this code which relate to the finishing and cotton thread
ma,nufacturing subdivisions of the industry shall be the
next Monday after the airoroval of such provisions, except as
heretofore approved and effective.
so that the completed sentence shall read a,s follows:
The term "effective date" as used herein is defined
to be July 17, 1933, or if this code shall not have been
approved by the President two weeks prior thereto, then the
second Mondpy after such approval; provided that the
"effective date" of the provisions of this code which re-
late to the finishing and cotton thread manufacturing sub-
divisions of the industry shall be the next Monday after the
approval of such provisions, except as heretofore approved
and effective.
"(d) There shall be added to the definitions in Section I of
said Code the following definitions:
The terra "job finishers" as used herein is defined
to mean those finishers who do not purchp.se or own either
the grey or the finished fabrics, but merely perform pro-
cessing and finishing services under a contract With, the
owner of the goods, who usually is a "converter."
The term "corporation finishers" as used herein is
defined to mean those finishers who ov/n or have a direct
or indirect interest in grey and finished fabrics and who
process and finish the goods for their ovm account and
requirements, and/cr for other accounts.
The term "mill finishers" as used herein is defined
to mean those mills which are engaged in the weaving of
fabrics or production of cotton thread and engaged in the
auxiliary finishing operations solely on the fabrics or cotton
thread so produced by them.
The term "manufacturers of cotton tliread" as used herein
is defined to mean all producers of sewing, crochet, embroidery,
or darning cotton thread, and the term "p)roducers of cotton
9721
thread" as used herein is defined to mean all who operate
machinery in '.-the production of the said cotton thjreads or
any of them, and all who purchase unfinished cotton thread
and cause the further proccssint, of such cotton thread for
the purpose of selling the same a.s a finished article."
Administrative Order 1-73- (also nrnn'oered 35-13) of June 27, 1934,
"by implication rcleaeod textile roll coverers from compliance with the
Cotton Textile Code "by ordering that any one "engaged in covering or
recovering rolls used in textile ma.chines" was to be classified under
the code for the Textile Machinery Manufa.cturing Industry.
The definition of "productive machinery" in Section I of the code
was amended on August 2, 1934, "by changing the wording of su"bdi vision
(4) from "piece dyeing machines" to
"piece dyeing machines where the same are used in the
production of unprinted fahricsc'^
Administrative Order 1-84 (also num"bered 3-27) of August 24,1934,
was a classification ruling that the manufacture of all "blanlcets and
all piece goods, up to and including 2&/0 of wool "by weight, plus 2^
tolerance for man\ifa.cturing operations, was goA'^erned "by the Cotton
Textile Code; all others containing hoth wool and cotton, hy the Wool
Textile Code. It was also ruled that the manufacture of all merino
yarns, up to and including 45'-^ of ?/ool 'oy weight, when spun on the
Cotton system, was governed "by the Cotton Textile Code; mixed yarns
spun on the cotton system, containing an excess of 45^ of wool "by
weight and all mixed yarns spun on any other system, "by the Wool
Textile Code.
Administra,tivc Order 1-89 of Septenher 6, 1934, modified Order
1-84 and 3-27, dated August 24, 1934, by ordering tha.t all wool mills,
manufacturing "blankets, merino yarns and piece goods, classified "by
said order under the Cotton Textile Code, "be "exempted from all fair
trade practice provisions of sa.id Code, in so far as they affected
bona fide legally enforceable contracts entered into ;prior to the
date" of the later order.
9721
-12"
CIIAJ-TSH III
Minirjum TTaA'e - Section II
SectionlU of the Cotton Textile Code, as approved July 9, 1933,
was as follows:
"On pjid after the effective date, the minimum wage that
shall he paid hy employers in the cotton textile industry
to any of their employees — except learners during a six
weeks' apprenticeship, cleaners, and oiitside employees —
shall he at the rate .of $12 ner iieek when employed in the
southern section of the industry and at the rate of $13 per
week when employed in the northern section for 40 hours of
lahor,"
The president's order of approval contained aji interpretation con-
cerning minimum waf;es to the effect that their approval was not to he
regarded as approval of their economic sufficiency hut w?-S granted he-
cause any higher minima at that tir^e might have reacted to reduce con-
sumption and employment and on the under ctandin^j;; that if and as condi-
tions improved, the suhject might he reopened with a view to increa^sing
them.
The first amendment to Section II of the Cotton Textile Code was
approved hy the President Novenher 8, 1953, and wa.s as follows:
"There shall he inserted at the end of Section II of said
Code the following:
'hut the employees in the operation of hleeching
dyeing, and printing equipment in finishing
fahrics shall he paid at the rate of not less
than $13 per week in the sotithern section of the
industry and at the rate of not less than $14
per week in the northern section of the industry
for 40 hours of labor. '
so that the completed Section II shall read as follows:
'On and after the effective date, the rainiraum
wage that shall he ipaid hy employers in the
Cotton Textile Industry to ajiy of their employ-
ees— -except learners during a. six weeks' appren-
ticeship, cleaners and outside employees — shall
he at the rate of $12 per week when em^plojed in
the southern section of the industry and at the
rate of $13 per week when employed in the north-
ern section for 40 hours of lahor, hut the em-
ployees in the operation of hleeching, dyeing,
and printing equipment in finishing fahrics
shall he paid at the rate of not less than $13
per week in the southern section of the industry
9721
-13-
and at the rate of not less than $14 per v;eek
in the northern section of the industry for 40
hours of lahor. '"
The second amendment to Section II of the Code was apiproved "by
the Administr8,tor (*) on Decenoer 27, 1933, and vras as follo'js:
"There shall "be added at the end of Section II of the Code
of Pair Competition for the Cotton Textile Industry the
following:
'In, the case of outside employees and cleaners
the minimum wa.ge shall not be less than 75^ of
the standard minimum wage hereinahove set forth.
In the case of employees in the industry v/ho are
partially incapacitated hy reason of a^^e, injury,
incompetency, or infirmity the minimum wage shall
he not less than 80/^ of the standard minimum wage
her^inahoye set forth, provided that such employees
employed hy any one employer shall not exceed 4^5
of the total numoer of his era-oloyees, and further-
that as a condition to the en"jlo;''ment of such em-
ployees the Cotton Textile National Industrial
Relations Board may reo^uire such, certificate as it
may find advisahle with relation thereto.'"
Executive Order 6606-F of February 17, 1934, provided that no code
provision was to he so construed or applied as to jorevent the employ-,
ment of p. person, whose earning capa.city was limited because of age,
physical or mentpj. handicap, or other infirmity, on light work at a wage
below the minimum esta.blished by a„ code if the employer obtained from
the state authority, designated by \,he U. S. Department of Labor, a certi-
ficate authorizing such person's employment at such v/ages and for such
hours as were sta,ted in the certificate.
The third amendment to Section II of the Cotton Textile Code was
couched in^ terms very similar to Executive Order 6606-E and was approved
by the Administrator on July 6, 1934:
"That the portion of Section II of the Code reading as follows:
'In the case of employees in the Industry who are
partially inca-pacitated by reason of age, injury,
incompetency or infirmity the minimum wage shall
not be less than SOfo of the standard minimum wage
hereinabove set forth, provided that such employees
employed by any one employer shall not exceed 4^ of
the total number of his employees, and further that
as a condition to the employment of s\xch employees
the Cotton Textile IJationad Industrial Relations
Board ma^^ require such certificate as it may find
advisable with relation thereto.'
(*) Executive Order 6543-A, delegating to the Administrator the power to
approve amendments, was approved December 30, 1933.
9721
-14-
shall "be stricken out raid that the follouing be substituted
in lieu thereof:
'An employee whose earning capacity is limited
■because of age, physical or mental handicap, or
other infirmity, md:^f be employed on light -pork
at a v;age belou the standard minimum hereinabove
set forth, if the enoloyer obtains from the state
authority, designated lij the United States De-
partment of Labor, a certificate authorizing such
employee's em-oloyment at such wages a,nd for such
hours as shall be str.ted iu the certificate.
Each employer shall file monthly nith The Cotton-
Textile Institute, Inc, , as a,gent of the Cotton
Textile Industry Comraittee to receive the same,
a list of all such employees employed by him,
showing the xrages paid to, and the maximum hours
of work for such emloyee,'"
Administrative Order X-6, issued February 12, 1934, pii.rsua,nt to
authority delegated to the Administrator bj/ Executive Order 6590-B of
February 3, 1934, required every person subject to a code to register
with his code authority the full name of his enterprise, together with
a statement of the number of shops, establisliments or separate units
thereof and their location. Upon such registration, each person was
to be furnished with official copies of the labor provisions of the
code to vrhich he was subject, such copies to be kept .conspicuously
posted at all times by such person in each separate unit of his enter-
prise. In addition, the employer was to post alongside the code pro-
visions a certified copy of any exemption, exception, or modification
permitting him to pay lower wages or work his' employees longer hours
or establish conditions of employment less favorable to his employees
than those ijrescribed by the code. ■ Administrative Order X-7 of Febru-
ary 28, 1934, among other things, provided that the Administrator might
remove the Blue Eagle from an employer for fail\ire to conroly with regu-
lations concerning posting of labor provisions. Administrative Order
X-82 of September 1, 1934, provided that official copies of labor pro-
visions for postii"j.g were a,lso to set forth such conditions, orders, in-
terpretations e:colanations or statements issued. by the President or the
Administrator as part or in connection with any order approving a code
or any amendment thereto relating to labor provisions; further, such
general interpretations, orders and erolana.tions as II.R.A. might deem
advisable to effectuate the purposes of the rules and regulations.
Executive Order 6750-C, dated June 27, 1934, and effective July
15, 1934, in effect granted an exemption from the minimum wage and
maximum hours provisions of codes for members of industries employing
apprentices, if certificates -permitting the employment of such persons
in conformity with a training program were first obtained from an agency
to be designated by the Secretary of Labor. The term "apprentice" was
defined to mean a person of a.t least 16 years of age who had entered
into a written contra.ct with an employer or axi association of eraioloyers
which provided for at least 2,000 hours of reasonably continuous employ-
ment for such person and his participation in an approved program of
9721
-15-
training. Thus, under the terms of this Executive Order an employer
could employ apprentices for a period of 50 weeks at less than the
minimum wage — instead of the 6 weeks' apprenticeship set "by the code-
if the employer elected to "become sutiject to the jjrovisions of the
order.
9721
. - ■ -16- . .
CHAPTSH lY
Maximum Hours Of Emyployees And. Fro ''Met ive l/iachinery - Section III
Section III of the Cotton Textile Code, as orL-^inally ap-oroved
on Ju.ly 9, 1933, ■ follows :
"On and after tlie effective date, employers in the cotton
textile industry shell not operate on a schedule of hours of labor
for their e;:nloyees - except repair sho;T crevs, engineers, plec-
tricians, firemen, office and su-^ervisory staff, shi-T.djig, v;atch-
ing and outside crevjs, and cleaners - in excess of 40 hours per
i/;eek and they shall not operate productive machinery in the cotton
textile industry for more thpn 2 shifts of -^.'.O liou.rs ea.ch "oer week."
The President's order of a'poroval stated that the approval of
the exception of repair shop crevs, etc. , from the maximum hours provi-
sion v:as on condition that tine and one-half he paid for overtime. How-
ever, the industry coiTUiiittee on July 1^', 1'''3j', s\t£, ;ested the follovlng
in lieu of the condition in the order of a:oi'oval which the President
accepted July 16, 1033:
"On and after the effective date the ..loximun hours of lahor
of repair shop cre^s, engiiieers, electricians and watching crews
in the cotton textile industi-y shall, exce'ot in case of emergency
work, he forty hours a '"'eek v.dth a toler-nce of 10 percent. Aiiy
emergency time in any mill shall he reported monthly to the Plan-
ning and Pair Practice Ai^ency provided for in paragra'oh 6 of the
code, through the Cotton Textile Institxite. "
The President's order of a"T^roval dated July s, 1933, also pro-
vided that while the exce;')tion of cle.?iiers and outside workers v.'as an-
proved for the present, it was on condition that the Planning ajid Su'oer-
visory Committee provided by Section 6 prepare and submit to the Adminis-
tration by January 1, 1934 a schedule of minirm.u.i wages and maximum
hours for these classes. This condition vras accented by the industrj''
comi;iittee on July 15, 1S33. ■
In addition, the original order of ap"iroval of the Cotton Textile
Code of July 9, 1333, interpreted the provisions for maximum hours as
establishing a maximum of hours of labor "oer '"eek for every employee
covered, so tha^t under no circumstpnces would such saa employee be
employed or permitted to work for one or more employers in the industry
in the aggregate in excess of the prescribed number of hours in a single
week. This interDretation \7as also acce-jted by the industry committee
on July 15, 1933.
A further condition in the President's order of ap-?roval of July
9, 1933 v/as as follows:
"Limitations on the use of productive machinery shall not
apply to production of tire yarns or 'fabrics for rubber tires
for a period of three weeks after this date."
9721
-17"
This condition was like'-dse accepted by the industry committee
on July 15, 1S33.
Adjninistrative Order 1-12 of July 30, 1933, stayed the applica-
tion of Section III of the Cotton Textile Code, pending determination
by the President of issues raised lay the application for exemption from
limitations of the ixse of machinery, as to the production of tire yarns
or fahrics for rxibber tires.
Tla.e follovdng requirements (*) concerning productive machinery
\7ere approved, by the Administrator, effective October 1, 1933, pursuant
to recommendations of the Cotton Textile Industry Comi:iittee:
"(l) All persons engaged or engaging in the cotton textile
industry shall register with The Cotton-Textile Institute, Inc. ,
320 3roadwa,y, Llew York City, an inventory of their productive
, 'machinery, as defined- in §aid Code, " in -place 6n October 1,,1933,
or then under contract but not installed, such inventory to be
duly certified to as to its completeness and correctness;
"(2) On and after November 1, 1933, all persons engaged
or engaging in the cotton textile industry shall file a report
monthly with The Cotton-Textile Institute, Inc., 520 Broadmfay,
Hew York City, setting forth any installation of additional pro-
ductive machinery, (nev; or second hand), as defined in said
code, installed by them, and specifying the extent to which such
installation is for the replacement of a similar number of units
of productive mpxhinery or for the purpose of bringing the oper-
ation of existing prod.uctive machinery into balance, and an ex-
plajiation of the saine, as duly certified;
"(S) After October 1, 1933, all persons engaged or engaging
in the cotton textile industry, prior to the installation of ad-
ditional productive machinery, as defined in said code, not
theretofore contracted for, except for such replacement and such
balancing of operation of existing productive machinery, shall
file application with IHae Cotton-Textile Institute, Inc. , 320
Broadway, Slew York City, for transmission through the Cotton Tex-
tile Industi-y Committee to the Administra,tor, stating the cir-
cumstance? of and reasons for such installation, and shall secure
a certificate from the Administrator that such installation will
be consistent ?7ith effectuating the policy of the Ifetional In-
dustrial Recovery Act during the period of the emergency; and
"(4) The Cotton Textile Industry Committee shall examine into
such ap'olication for such certificate and the facts as to the cir-
cumstaaices of and reasons for such proposed installation. It shall
transmit to the Administrator such application with any statement
submitted by the applicant, with its report of such examination
of the facts and with its recommendation as to the granting or
withholding by the Administrator of such certificate to such appli-
cant. "
(*) Recommended by the Code Authority under Section VI of the Code.
9721
-1£
JUxecutive Order 1-18 of iJovenber 6, 19G3, denied the ap'olication
for exemption from the machine hour provision of the Cotton Textile
Code as a,ij':ilied to the use of nachinory in the production of tire yarns
or fatrics for rubher tires and "begiuninf: ilovenher 1", ITSS, the stay
of said provision, grtjited July 30, 153o, wr'S to he terninated and no
further exemption from or exception to the provision of said code 'vas
to he made except "by the President uoon recommendation of the Cotton
Textile Industxy Cominittee and the Adninistrator , or the Administrator,
or a.s approved by the Presidtent.
The first amendment to Section III ras approved by th- President
on IJovember S, 1933, and was as follor:s:
"There shall be added to Section III of said Code, after
the vords '40 hours per week, ' the follo-.dn^-:
'Provided employees engaged in the operation of
such machines as dyeing, blea.ching, drying, and.
mercerizing machines, ivhen used only as a 'oart of
continuous chemical processes where the goods
would be joanardized by interruption, may, in
such emergency, work more than 40 hours per week,
but not in excess of 48 liours per week. '
and the remainder of the Section following the words '40 hours
per week' shall be revised and sinended so as to r-e?d as fol-
lows :
'emDloyers in the Cotton Textile Industry shall
not operate productive machinery for nore than
two shifts of 40 hours each per ■■.eek; "orovided,
however, that the operstin^^ of finishing machiu-
ery, except ^orinting nachinery, o iied by mill
finishers for a sufficient nurn^er of hours to
finish the fabrics woven on th.-^r own looms only,
or cotton thread m<'..de on their own mrxhinery only
shall not be deemed a violation of this section, until
any such finishing operation exceeding two shifts
of 40 hours each be determined to be an unfair
coiapetitive practice. '
so that the ajnended Section III shall r--ad as follows:
'On and after the effective date, employers in the
Cotton Textile Industry shall not, operate on a
schedule of hours of labor for their ei.r;loyees —
except repair sho-:i crews, engineers, electricians,
firemen, office and supervise!'^ staff, shiio^ing
watching and oxitside crews, and cleaners — in excess
of 40 hours per T/eek; Provided, em-oloyees engaged
in the operation of sucn machines as dyeing, bleach-
ing, drying, and mercerizing machines , vhen used, only
as a part of continuous chemical processes where the
goods would be jeo-oardized by interruption, may, in
9721
"19-
s"ach emergency, vv'ork more than 40 hours per '-reelc, hut
not in excess of 48 hours per week. Employers in the
Cotton Textile Industry shall not operate productive
m-achinery for more then two shifts of 40 hours ea„ch
per -iveeh; provided, ho'vever, that the opersiting of
finishing m<?.chinery, except printing machinery, ovmed
"by mill finishers for a sufficient numher of hours to
finish the fahrics woven on their ov/n looms only or
cotton thread made on their ov/n machinery only shall
not "be deemed a violation of this section, until any
such finishing operation exceeding tv;o shifts of 40 hours
each he determined to he an unfair competitive practice. '"
Executive Order 1-20 of IJovemher 13, 1933, extended the date
of termination of the stay of the provision limiting machine hours as
applied to the production of tire yarns or fahrics for ruhher tires
from lovenher 13 to November 20, 1933. Executive Order 1-21 of
ITovemher 27, 1933, extended the termination date of the aforementioned
stay pending the completion of hearings and determination hy the
President of issxies raised with respect to the said provision.
Adjninistrative Order 1-23 of Decemher 2, 1933, ;orovided that
during the month of December, 1'''33, prodiictive machinery in the Cotton
Textile Industry was not to operate for more than 75 percent of the
ho\irs otherwise permitted by the Cotton Textile Code, except that the
75 percent provision was not to apply to the tire fabric group. It
was further prescribed that
"To provide procedure for necessary temporary changes in the
limitation of hours of operation of productive machinery pro-
vided in the Code to meet particular conditions arising in
particular groups in the industry and to preserve a balance
of productive activity with consumption renuirements, the
Code Authority with the concurrence of the government re]ore-
sentatives" 'thereon might thereafter,' "for the periods of
not more than ninety days, reo'aire a temporary shortening of
the hours of such machine operation within any group from those
otherwise permitted by the Cotton Textile Code."
Executive Order 1-26 of December 4, 1933, denied the appli-
cation for exemption from the provision of the Cotton Textile Code
limiting the use of productive machinery as applied to the production
of tire yarns or fabrics for rubber tires, terminated the stay of
said ;orovision, last extended on IJoveraber 27, 1933, and provided that
the provision with reference to the limitation of the use of produc-
tive machinery as applied to the production of tire yarns or fabrics
ror rubber tires was to be in full force and effect from and after
December 11, 1933.
Adrainistrative Order 1-27 of December 13, 1933, certified that
the pro-oosed installation by Martha Hills, a. Georgia corporation,
of 33,600 spinning spindles in its ^lant , by transfer from another
existing plant, was "consistent with ef f ectua.ting the policy of the
National Industrial Hecovery Act during the period of the emergency,"
9721
-20-
under the su-pplemental reouireiaents effective October 1, 1953. (*)
Administrative Order 1-23 (**) of DecenilDer IC;, 1935, "reouired
that, for a period of sixty days, from Jaaraary 1, 1954, spinning
spindles in the industry, wherever located, operating on the production
of any type of carded yarns for sale as such (such spindles comprising
the productive machinery of the carded ya.rn group of the industry)"
were not to "he o"oerated in excess of forty-ei^ht hours each in any
week during such period, provided that such period" uight oe "shortened
hy the Code Authority with the concurrence of the government repre-
sentatives thereon, or that such restriction of hours of operation"
might "likewise he reduced at any time during the period as changing
conditions" might waxrent; "and provided further that during the
period ?7hen such temporary limitation" was in effect, "no veaving
mill, comhed yarn mill or Iciitting' mill" was to "operate spindles in
the production of any type of carded yarn for sale as such v'hich were
not employed in spinning carded yarn for such sale at some time dur-
ing the ninety days prior to Decemher 1, 1933."
Administrative Order l-29,(***) of December 18, 1935, re'Uiired
that, for the month of Janua,ry, 1954, printing machinery was not to
operate for more than 75 per cent of the hours otherwise permitted
by the Cotton Textile Code; ;orovided that such period might be shortened
by the Code Authority with the concurrence of the government repre-
sentatives thereon, or that such restrictions of hours of operation
might likev.'ise be reduced at any time during the period as changing
conditions night v.'arrant.
The second amendment to Section III of the Cotton Textile
Code v^as ap-oroved by the Administrator on December 27, 193^, to be
effective January 1, 1934, and was as follows:
"There shall be added at the end of the first Paragraph
of Section III of the Code of Fair Competition of the Cotton
Textile Industry the following:
■'In the case of outside employees, employers in the
Cotton Textile Industry shall not operate on a
schedule of hours of labor in excess of 44 hours per
week, except in cases of emergency. In the cp.se of
cleaners, no employer in the Cotton Textile Industry
shall operate on a schedxile of hears of labor in ex-
cess of 44 hoiirs Der week.'"
(*) See page 18 above.
(**) Requirement of Code Authority under Order 1-23 (see page; 19
above) with concurrence of government re'oresent.:j.tives, one of
whom wa,s the AdiTiinistrator.
(***) Henuirement of Code Authority under Order 1-23 (see -oa^e 19
above) with concurrence of government reiresentatives, one of v:hom
vras the Adrainistrator.
9721
-Si-
Administrative Order 1-31A of December 29, 1933, ezem;nted from
the oiDPration of the reouirements providing for a further temporary
limita,tion on the hours of operation of productive machinery for
the manufactiire of fine goods during the month of January, 1934,
such inachinery in the fine goods "branch of the industry which v/as
actually engaged..in filling such contracts for the United States
Government as were av/arded against bids submitted prior to January 1,
1934; provided that each manufacturer o-oerating such machinery so
limit the OTDera,tion of other similar active machinery not so engaged,
BO that the total average operation of ;productiVe machinery active in
January, 1934, owned by sudx 'manufa-cturer, would not exceed the
hours of operation provided in said reauirements. Tlie srane order also
exempted two corporaitions from the application of the temporary re-
cuirement for a further limitation dui-ing the month of January, 1934,
on hours of loom operation in fine goods mills beyond that specified
in Section III of the Cotton Textile Code.
Administrative Order 1-31B of December 29, 1933, exempted from
the order of December 2, 1S33, providing for a further tem-oorary
limitation on the hours of operation of productive m.achinery during
the month of December, 1933, such maxhinery in the industry which
was actually engaged in dilling such contracts for the United States
Government as were awarded against bids sxibmitted prior to December
2, 1933. The operation of other similar active machinery not so en-
gaged was to be limited so that the total average operation of produc-
tive machinery active in Df^ceraber, 1933, would not exceed the previous
renuirement.
Administrative Order 1-31C (*) of December 29, 1933, provided
that during the month of Jan.uary, 1934, fine goods manufacturers oper-
ating looms in the Pine Goods Group of the Cotton Textile Industry on
fabrics made wholly or in part of combed cotton yarn and on fabrics
made of carded cotton yarn warps of courts finer than ITo. 23s yarn
and/ or fillings finer than wo. 40s yarn (biit not including all cotton
fabrics now identified v/ith the Print Cloth Group vAiere the cloth con-
struction does not exceed 112 ends per inch in the warp) were to sus-
pend operation of such looms for one calendar week in addition to
observing the limitations on hours of machine operation provided by
Section III of the Cotton Textile Code. It was further reouired that
the number of looms operating in any mill at any time during January,
1954, on such fabrics was not to exceed the maxiiman number of looms
reported to The Cotton Textile Institute, Inc. , as operated by that
mill at any time betv/een July 17, 1933 and December 1, 1933. The
order further reouired that no .aanufacturer in the 2ayon Group oper-
ating looms on linings, twills, taffetas, Prench Crepes, poplins and
satin, woven of sjnathetic fa.bric yarn v/arps, during the foxir weeks
beginning January 1, 1934, was to operate such looms on such fabrics
for a total of loom hours in excess of three times the loom hours
of the maximum week run of such manufacturer on such looms between
July 17 ajnd December 1, 1933, a,s reported' to the Cotton Textile In-
stitute, Inc. , except that such manufacturer might suspend operation
(*) By Code Au-thority under Order 1-23 (See page 19 above) vdth con-
currence of government representatives, one of whom was the
Administrator.
9721
-22-
of such looms for one cfleiidar week duriiii^- the aonth of January. 1934,
in lieu of such further lirait-ition.
Administrative Order 1-312 of liecenfoer 2S , 1935, exempted
cotton s-oindles in mills mal-cing i;jiderr.'ear from the operation of the
order ofDecemher 2, 1933, p.^ovidinj for a further temporary limitation
on the hours of operation of procoictive machinery during the month of
Secem'ber, 1933; ;orovided, however, that this exemption did not ap;oly
to such spindles in under\7ear mills as had "been substantially engaged
since the code became effective in the production of yarn for sale
in the open market in competition v/ith other carded yarns.
Administrative Order 1-31E of December 29, 1933, exempted from
Order 1-23 of December 15, 1953, (*) providing for a limitation upon
the hours of operation of productive machinery in the carded yarn
group of the industry for a period of sixty d.ays from January 1, 1934,
such spindles as might be engaged during said period in the spinning
of yarn for eventual use in the manufacture of rubber tires.
Administrative Order 1-32 (**) of January 10, 1934, provided
that for a period of seven v;eeks, beginning Januai-y 15, 1934, and end-
ing March Z, 1934, no spinning spindle in the Cotton Textile Industry,
wherever located, operating on the production of any type of combed
yarn for sale as such with the single exception of spindles producing
yarn for eventual use in the manufacture of rubber tires (all such
spindles comprising the productive machinery of the Combed Sales Yarn
Group of the Industry) was to be o;-!ernted during any week within such
period in excess of 70 ipercent of the maximum hours of weekly opera-
.tion othervdse permissible for such productive m.achinery under Section
III of the Cotton Textile Code as approved by the President on July
16, 1933, provided that the above "Teriod nir^ht be shortened by the Code
Authority with the concurrence of the government representatives
thereon, or that such restriction of hours of operation might likewise
be reduced at any time during the yjeriod as changing conditions might
warrant. It was further re'"iVLired that, df.ring the period when such
tem^Dorary limitation was in effect, no .-eaoVing mill, carded yarn mill;.
Icnitting m.ill, thread maiiufacturer or mercerizing establishment was to
operate spindles in the prodiiction of any t;^"pe of combed yarn for sale
as such, other than yarn for eventuiil use in the manufacture of rubber
tires, which were not ev.roloyed in spinning combed yarn for such sale at
some time during the 90 days prior to January 1, 1934.
Administrative Order l-33(***) of Jrnua.ry 10, 1934, reouired
(*) See page 20 above.
(**) By Code Authority under Order 1-,13 (see "oage 19 above) with
concurrence of goveriiment representatives , one of whom was the
Administrator.
(***) By Code Authority under Order 1-23 (See page 19 above) with
concurrence of government representatives, one of whom was the
Administrator.
9721
33-
that for a oeriod of s'^-ven weeks, ''oeginniiig January 1^, 1934 and
ending March 3, 19"4, no spinning Toindle, OT.'med "by a mercerizing
cormany, operating on the production of combed yarn for further pro-
cessing in its o\wi mercerizing estahlishnient , vias to he operated
during such -:)eriod for a total number of hours in excess of the
equivalent of 75 percent of the naximura hours of opera.tion viiich
would otherwise he permitted "by Section III of the Cotton Textile
Code, -provided that this period might he, shortened by the Code
Authority with the concurrence of the government representatives
thereon, or that such restriction of hours of o-:ier,ation might like-
vdse he reduced at any time dxiring the period as changing conditions
might warrent. ■
Adrrdnistrative Order 1-34 (*) of Januery 10, 1934, required
the.t for a period of seven Y/eeks, beginning January Id, 1934 and
ending Iferch 3, 1934, no spinning spindle crned by a thretad pro^
ducer, operating on the production of combed yarn to be sold by
such thread producer as thread, was to be operated, during such
period a total number of hours in excess of the eouivadent of 75
percent of the maximum hours of operation, which would otherwise
be permitted by Section III of the Cotton Textile Code, provided,
the period or the restriction of hours ndght be reduced as changing
conditions might vvarrant. It was further reauireci that,, during
the period such tem-^orary limitation^ was in effect, no weav-
ing mill, carded yarn mill, combed yarn mill, knitting mill or
mercerising establishment was to operate spindles in the production
of any type of finished thread to be sold direct to the trade for
sewing purooses which were not employed in spinning thread for such
sale at some time during the ninety days 'orior to January 1, 1934.
Administrative Order 1-37 of January 15, 1934, exempted 200
looms of the Cherokee S"oinning Company, Knoxville, Tennessee, from
the reauirements of Order i-31C (**) of December 29, l'^33, providing
for a temporary limitation on the hours of operation of productive
machinery for the manufacture of fine goods during the month of
January, 1954, on condition that sadd company effect a corresponding
reduction of the loom hours involved before April 1, 1934.
Administrative Order 1-38 of January 22, 1934, granted an
exception from the provisions of Section III of the Cotton Textile
Code during the week ending January 20, 1934, to the Merrimack
Manufacturing Com^Dany of Lo'-'ell, Massachusetts.
Administrative Order 1-39 of Janua::-y 22, 1934, approved the
proposed installation by the Gates Rubber Company of Denver,
Colorado, of 20,000 sioinning spindles for the manufacture of tire
cord in its proposed plant, by transfer from another existing plant,
under the supplementary provisions, effective October 1, 1933, of the
(*) By Code Authority under Order 1-23 (See page 19 above) with
concurrence of government representatives, one of vjhom was the
Adj-ni n i s t rat o r .
(**) See page 21 above.
o
721
-;j4-
Cotton Textile Code.(*)
Administrative Order 1-40 of January 2-, 1^34, required (**)
that, for the month of ?e"bra.ary, 1S34, printing machinery was not to
he operated for more than 75 percent of the hours othervdse permitted
hy Section III of the Cotton Textile Code.
Administrative Order 1-41 of January 23, 1934, required (***)
that, for a period of twelve weeks heginning January 29, 1334, and
ending April 21, 1934, no mill in the Cotton Textile Industry, wherever
located, -ras to operate looms forty-five inches or wider for the
production of wide sheetings for inmiediate or ultimate use for
hed sheets or pillo-- cases a total n-arJoer of loom hours in exceos
of 75 -percent of the total number of loom hours otherwise \3ermis-
sihle "for such productive machinex-y uiader Section III of the Cotton
Textile Code. It was further required that no mill which had not, for
a -oeriod of ninety days prior to January 5, 1334,. operated looms
forty-five inches or v;ider for the production of wide sheetings, was
to engage in such operations and siich production during the afore-
mentioned period of twelve weeks.
Administrative Order 1-42 of January 23, 1334, modified
Order 1-23 of December 15, 1333, (***;-) by requiring that for a period
of four weeks beginning January 23, 1934, and ending February 24, 1334,
spinning spindles in the Cotton Textile Industry, w-erever located,
operating on the production of any type of ca.rded yarn for sale as
such, except yarn for eventual use in the manufacture of rubber tires,
v;ere not to be operated in excess of sixty hours each in any week
during such oeriod. Until J?n"aa.ry 23, 1334, the effective date of
Order 1-42, the emergency requirements of Order 1-28 were to continue
in full force and pffect.
Administrative Order 1-45 of January 28, 1334, required (****h^
that all fine goods mills were to suspend operations on all looms
on fine cotton goods for three days in February and three days in
March, such days to be interpreted as full v.'orlcing days of not less
than a single shift of eight hours, if a mill v;as O'oerating on a
single-shift basis, and not less than two shifts of a total of six-
teen hours, if on a two-shift basis, and the time so lost was not
to be made wo by any method; 300 looms in each mill i.^ere exera-oted
from this requirement.
(*) See page 17 above.
(**) 3y Code Authority under Order 1-23 (see -oage 19 above) ^-dth
concurrence of govenrient re'^rpspntative"^', one of whom n-ras the
Admini s tra.t or .
(***) By Code Authority under Order 1-23 (see -^age 19 above) with
concurrence of government r9':)resento-tives, one of whom wa,s
the Administrator
(****) See page ;2G above.
(*****) 3y Code Authoi-ity under Order 1-25 (see -.age 19 above) with
concurrence of governaent representatives, one of whom was
the Administrator.
8721
-25-
Administrative Order 1-46 (signed by the Division Administrator)
of Fe"bruary 8, 1934, exempted the Plymouth Cordage Company of
North Plymouth, Massachusetts, from the provisions of the cordage
and twin agreement (*) and gave it permission to operate its pro-
ductive cording machinery for four forty-hour shifts per week for
a. period of six weeks from the date of the order, on condition that
the nurnher of hours worked "by .'-iny emp].oyee was not extended "beyond -
the maximum set hy the agreement. (The Cordage and Twin Code,
No, 303, was approved February 21, 1934.)
Administrative Order 1-49 (.Amendment No. 5 to the Cotton
Textile Code) of Pebruar;;y- 21, 1934, "determined that the operating
of finishing raachinerjr owned "by mill finishers on sheetings 42" wide
and over, woven on their own looms for .more than two shifts of 40
hours each per week, is an unfair competitive practice,"
Administrative Order 1-50 of Pehruaiy 23, 1934, required (**)
that during the month of March, 1334, no printing machine in the
finishing "branch of the industry was to operate in any week for more
than 75 percent of the eighty hours per i.7eek otherwise permitted by
Section III of the Cotton Textile Code; provided, however, that for
the period of five weeks beginning February 26, 1934 and ending
March 31, 1954, t"nree printing ma.chines in each plajit were permitted
to operate the full eighty hours per week 23ermitted by the code.
Administrative Order 1-52 of February 27, 1934, approved the
proposed instaJlation by Martha Mills, a Georgia, Corporation, of
4,800 a^dditinnal spinning spindles in its plant by transfer from
another e.xi sting plant.
Administrative Order 1-54 (signed by the Division Administrator),
dated April 21, 1934, c-xenpted the Warren Narrow Fabric Company of
warren, IHiode Island, from the provisions of Section III of the
Cotton Textile Code to the extent necessary to perm.it said company
for a period of si:: weeks from the date of the order to operate a
raaxim'.ua of thirty looms three shifts of forty hours each per Treek;
provided that, subsequently during the balance of the calendar year
1934, said company was to reduce its hours of opera,tion of productive
machinery below those otherwise permitted by the code by the amount
of the excess machine hours operated pursLiant to th.e authorization
of the exemption. Administrative Order 1-62 of June 2, 1934, ex-
tended this exemption to July 14, 1934,
Adm-inistrative Order 1-55 (signed h'j the Division Administrator),
dated April 23, 1934, e:'cerapted the Schlegel Manufacturing Company
of Rochester, 'Sew York, from the provisions of Section III of the
code to the extent necessary to permdt said compa.ny for sixty days
from the date of the order "to operate in the production of glass run
channel linings en a raaximujn schedixle of hours of labor for its women
employees of not in excess of forty-eight "hours per week aiid ,
for its men employees of not in excess of sixty hours per week
(*) See page above.
(**) By Code Authority under Order 1-23 (see page 19 above) v/ith
concurrence of government representatives, one of whom was
the Administrator,
9721
-PH-
during said "oeriod to operate pi-oductive macliiner/ for not
more than one day-shift of forty-eight hours each per week and one
night-shift of sixty hours each per weelc; "provided that time and one-
third was to "be paid for all overtime of labor heyond that provided
in the Cotton Textile Code and iv.vther thrt the wRges and hours of
lahor for repair shop crews, engineers, electricians, firemen, office
and supervisory staff, shipping, v'atching and outside crews, ,gnd
cleaners, were to remain unaffected by the exemption.
Administrative Order 1-50 of Uay 23, 1S34, provided that
"Da.ring each of the three consecutive four-week periods, heginning
on the 4th day of June, 1934, -and ending on the .25th day of A\igust,
1934, no ^iroductive machine in the Cotton Textile Industry" was to
"operate for more than 75 percent of the hours otherwise permitted"
"by the code. In lieu of the foregoing renuirenent no manufacturer
in the rayon weaving "branch ox the industry, during each of two
consecutive four-week periods "beginning June 4, 1934 and ending
July 28, 1934, was to'o-oerate looms in excess of three times the
average weekly loom hours ran 'oy such manufpcturer during the months
of Jp-jLUary, Fe"bruary and March, 1934, except that such manufacturer
might instead suspend operation of such looms for one calendar week
during each of the aforementioned two four-week -periods.
The foregoing provisions of Administrative Order 1-60 were
not to apply to (l) mills operating throughout said three four-week,
periods a single shift of 40 hours or less i^ev week; (2) machinery
actually engaged in filling such contracts for the United States
Government a:s were awarded against "bids stibmitted -orior to May 32,
1934;. • (3) machinery pngo.ged in the -jroduction of tire yarns or fa"brics
for ru'b'ber tires, tobacco cloths, woven cotton blaiikets, upholstery
and drapery fabrics, Ja.couard woven bedspreads, merino j'^arns, narrow
fabrics of certain tj'pes, paper dx-j'er felt, millinery foundation cloths;
(4) machinery used for spooling, v.rinding, reeling or skeining as a
final process to produce cotton thre.ad for sale as a finished article.
It was further provided that reductions in operation were to be made
on reducing hours or days in each week and not in shut-dovms of one
or more weeks.
Administrative Order 1-63 of J-'aie 5, 1934, exempted for a
period of three months the International Braid Company of Providence,
Rhode Island, from the provisions of Section III of the Cotton Textile
Code to the extent necessary to -oermit said company during soid "oeriod
to operate a m^^ximum of ten looms thve^ shifts of forty ho\irs each per
week in the production of Venetian blind ladder taie.
Administrative Orders 1-64 aaid 1-55, both of Juiie 5, 1934,
each exem;oted one company from the application of the curtailment order
(Ho. 1-60) of May 22, 1934, (*) with respect to a limited number of looms.
Administrative Order 1-66 of June 5, 1934, exempted from the
curtailment order {'Jo. 1-50) of Usy 22, 1934 (**) (l) i\p to and including
150 looms in any mill "having in place 300 looms or less and an adenuate
(*) Sf^e page above
(**) See page above •
-27-
n-um'ber of spindles in such mills to provide yarns to; balance the oper-
tions of such exempted looms; (2) up to and including '2500 cotton spin-
ning spindles in any mill having no looms and htaVing 5000 or less spin-
dles in place; (3) all looms then engaged in the production of velveteens
and clip spot marquisettes and an adequate number of spindles to pro-
vide yarn to "balance the operation of such exempted looms ; and (4) all
jacquard looms then engaged in the production of cotton damask and an
adequate number of spindles to provide yarn to balance the operations of
such exempted looms.
... Administrative Order 1-67 (signed by the Division Administrator) of
June 8, 1934, exempted three printing machines in each finishing plant
in the industry from, the appliction of the curtailment order (No. l-60)
of May 22, 1934* so that they might be operated up to'eighty hours a
week for a period of four weeks beginning June 4 and ending June 30, 1934.
Administrative 0rd.ers 1-68, 1-70 and 1-71, all-signed by the Div-
ision Administrator and dated June 12, 1934, denied applications of in-
dividixal companies for exemption from the curtailment ord6r (Ko. l-60) of
May 22, 1934) .** ■ . ■
Administrative Orders 1-69 of June 12, 1934, 1-85 of August 28, 1934,
1-87 of August 31, 1934, and: 1-90 of September 5, 1934, all signed by the
Division Administrator, granted exemptions to individual companies from
the provisions of the curtailment order (No. l-60) of May 22:, 1934,***
for various periods and with respect to certain productive machinery.
Administrative Order 1-72 (signed by the Division Administrator) of
June 22, 1934, stayed the provisions of the curtailment order (No. 1-60)
of May 22, 1934, as to all knitters of ixnderwear, owning their own spin-
dles, for the first period named in said order, provided that in the
interim a conference of representatives of both knitters ovming and not
owning their spindles was held to reconsider the whole question ade-
quately; further provided that if upon reconsideration it was decided that
the stay should not have been granted, said knitters of underwear owning
their own spindles would be required to curtail their operations in the
second and third periods so that the total number of machine hours cur-
tailed would be equivalent to the number of machine hours v/hich would
have been curtailed during all three periods had the stay not been grant-
ed; and further provided that during the period of the stay such knitters
of underwear did not sell yarn in the market.
Administrative Order 1-80 (signed by the Division Administrator) of
July 26, 1934, granted an exemption from the provisions of Order 1-60 of
May 22, 1934, to the extent that all knitters of underwear, owning spin-
dles and spinning yarn exclusively for their own use, for the four-week
period beginning J-une 4, 1934, and for the eight-week period beginning
July 2, 1934, were only to curtail their use of productive machinery from
the maximum machine hours permitted by the Cotton Textile Code by the
equivalent of one and one-half weeks' full time operation under said Code,
or by 120 machine hours; provided that knitters of underwear, owning
(*) See page 26 above.
(**) See page 26 above.
(***) See page 26 above.
9721
, -28-
spindles "but not spinning yarn exclusively for their ovna use, would
conform with the curtailment order of May 22, 1934, and if they had
not conformed therewith during the first four-week period, in reliance
on the stay granted hy Order 1-72, they were to curtail their operations .
during the eight-week period beginning July 2, 1934, to such an extent
that the total numher of machine hours curtailed during such eight weeks
would he equivalent to the number of machine hours v;hich vrauld have been
curtailed during the entire twelve weeks had the stay not been granted'.
Administrative Order 1-94 of October 19, 1934, certified that the
proposed installation by the Southern V/eaving Company of G-reenville,
South Carolina, of tvro multiple shuttle loons was consistent with effect-
■uating the policy of the National Industrial Recovery Act, under the re-
quirements of October 1, 1933."=
Administrative Order 1-96 (signed by the Division Administrator) of
October 24, 1934, exempted the International Braid Company of Providence,
Rhode Island, from the provisions of Section III of the Cotton Textile
Code to the extent necessary to permit said applicant during a period of
twelve weeks or such lesser period as such applicant might be subject to
the Cotton Textile Code to operate a maximum of tv;elve looms three shifts
of forty hours each per week in the production of Venetian blind ladder
tape.
Administrative Order 1-100 (signed by the Division Administrator)
of January 15, 1935, exempted all looms engaged in the production of
Venetian blind ladder tape from the provisions of sub-section (c) of
Section III of the Cotton Textile Code for a period of five months from
the date of the order.
Administrative Order 1-101 of January 22, 1935, stayed the pro-
ivisions of Section III, subsection (c) , of the Cotton Textile Code, as
to all parties subject thereto for a period of fovir months from January
22 to the extent of twenty-six jacquard looms in each plant in the in-
dustry when such looms v/ere engaged in the production of jacquard woven
bedspreads, provided that the total number of loom hours per week of all
jacquard looms in a plant making jacquard woven bedspreads would not
exceed the total number of loom hours per week permitted "oy said section
of the code.
Administrative Order 1-103 (signed by the Division Administrator)
of January 30, 1935, exempted the Clearvrater Mill, Cedartown, Georgia
(of the Goodyear Tire and Rubber Company) , from the provisions of sub-
section (c) of Section III of the Cotton Textile Code to the extent
necessary to perm.it said mill to operate a maximum of fifty-four looms
three shifts of forty hours each per week in the production of chafer
fabric for a period of thirty v/orking days beginning and including
January 30, 1935.
Administrative Order 1-110 of March 25, 1935, declared that an .
emergency existed in the Cotton Textile Industry and that action was
necessary to effectuate an orderly readjustment and rehabilitation of
(*) See page 16 above.
9721
-29-
the industry during a period of twelve weeks from the date of the order.
The Cotton Textile Industry Committee was therefore authorized and dir-
ected during the period of the emerge,ncy to determine on such temporary
adjustments, as might he found necessary to effectuate the purpose' of
the Act, in the maximum hours of operation of productive machinery
otherv/ise permitted by the code, or in the number of operating units of
such productive machinery, in particular divisions or groujis of the in-
dustry, provided that such adjustments did not require reductions ex-
ceeding 25 per cent in the hours of operation or in the maximum of such
machines operating in such division or group within six months prior to
the period of such reduction in the respective plants. During the period
of any such temporary adjustment no productive machinery which had not
been engaged within six months prior to the beginning of such period in
the production of any division or group was to be transferred to or em-
ployed in such operation, except productive machinery contracted for at
the beginning of such period or installed in the course thereof pursuant
to the requirements of the N.R.A. concerning additional productive
machinery. No such temporary adjustment was to be made applicable by
the code authority to any plant operating productive machinery during
such period on a single shift schedule, provided that such plant was in
operation within six months prior to such period of temporary adjustment.
For the administration of the foregoing provisions of Order 1-110
there was to be appointed by the chairman of the Code Authority three mem-
bers of a Research and Planning Committee none of whom was to be specially
interested as an owner, employee or otherwise in any unit of the indus-
try. The National Industrial Recovery Board was to select a technical
adviser in the employ of the government to serve as a representative of
the National Recovery Administration as a full member of said Research
and Planning Committee. The Committee was to investigate the facts as
to conditions in the industry, formulate proposed action, and to observe
the effects of v/hatever action was taken under the provisions of this
order. The Research and Planning Committee was to transmit its reco-
mmendations simultaneously to the code authority and to the National
Industrial Recovery Board; the Code Authority iwas to exercise its
powers under this order after and upon the basis of recommendations
made by the Committee end was to notify the National Industrial Recovery
Board of any proposed action, which action was to become effective not
earlier than five days after such notification had been received, unless
the Chairman, or other duly authorised representative of the National
Industrial Recovery Board, notified the Code Authority in the meantime
that such action was disapproved, or was disapproved unless m.odified, or
was suspended. Any action taken by the Code Authority under this order,
or the exercise of authority therein conferred, might at any time be
revoked, or revoked unless modified, or suspended by the National In-
dustrial Recovery Board.*
(*) Pursuant to the authority delegated to the Cotton Textile Code
Authority by Order 1-110, temporary adjustments in the hours of
operation of productive machinery wore made for only three groups
of the Cotton Textile Industry, as follows:
1. Carded Sales Yarn G-rouT) - For two four-weeks periods begin-
ning April 1 and April 29, 1935, respectively, no manufacturer was
to operate any spinning spindle in the production of any type of
carded yarn for sale as such in excess of 240 hours for each hour-
weeks period, or in excess of 180 hours for the three-weeks period
beginning May 27, 1935. No spinning spindles which had not been
- Cfnntnote continued on following page)
-30-
Administrative Order 1-112 (signed Toy the Division Administrator)
of April 12, 1935, granted an exemption to Monument A'ills, Ho-asatonic,
Massachusetts, from the provisions of Section III (a) of the Cotton
Textile Code to the extent necessary to permit employees in the hemming
and scalloping department to be employed forty-eight hours per week,
provided that time and one-third he paid for all hours in excess of
forty per week, and that, since the exemption was granted hecause of
lack of available vorkers, all duly qualified hemming or scalloping
machine operators who applied for work v/ere to he employed.
Administrative Order 113-A of April 26, 1935, was a telegram from
the Division Administrator to Coilinghourne Mills, Inc., Elgin, Illinois,
granting the company an emergency exemption from the provisions of Sec-
tion III of the Cotton Textile Code so that its thread department em-
ployees could work eight hours additional on April 27th, provided time
and one-third was paid for said eight hours.
Administrative Order 1-114 (signed hy the Division Administrator)
of May 6, 1935, granted an exemption from April 15 to June 16, 1935,
from the provisions of the determination of the Cotton Textile Code
Authority for the Carded Sales Yarn &roup,**dated March 26, 1935, pur-
suant to Administrative Order 1-110, to the 'Wilson Cotton Mills, Wilson,
North Carolina, so that it was permitted to operate spinning spindles
which had not been engaged in the manufacture of any t;;^e of carded
cotton yarn for sale as such within six months prior to April 1, 1935.
(*) engaged in such production within six months prior to April 1 were
to be transferred to or employed in the manufacture of such yarn for
sale, except such as might have been contracted for prior to said
periods or installed in the course thereof pursuant to K.R.A. re-
quirements as to installation of additional productive machinery.
2. Wide Sheeting: G-roup - During the period of eleven weeks begin-
ning April 1, 1935, no manufacturer in the wide sheeting group
(operating looms 45" or wider in the manufacture of fabrics for
immediate or ultim.ate use for bed sheets or pillow cases) was to
operate looms in such production in excess of 75 per cent of the
total number of loom hours otherwise permissible for such looms.
The same restriction concerning machinery not engaged in production
for six months prior to April 1, 1935, was set for this group as
for the Carded Sales Yarn Group.
3. Print Cloth Yarn Fabrics Crrour- The temporary reduction for this
group was precisely the same as that for the Carded Sales Yarn Group,
cited above, with this group defined to mean manufacturers of print
cloth yarn fabrics laiovm in the trade as narrow plain print cloths,
wide plain print cloths, carded broadcloths and pajama checks, ex-
cluding fabrics known to the trade as shade cloths, tobacco cloths,
medical gauze and fancy print cloths.
(**) See footnote on page 29 above.
9721
-3i-
The company was, however, to comply in all respects with the red-action
in hours prescrited by said determination.
Administrative Order 1-115 (signed by the Division Administrator)
of May 6, 1935, exempted the Mandeville Mills, Carrollton, Georgia,
from the provisions of the determination of the Cotton Textile Code
Authority for the Carded Sales Yarn Group, above referred to, * from
April 15 to June 16, 1935, provided the total number of spindle hours
operated by said mill during any of the periods specified in said de-
termination did not exceed 75 per cent of the total number of spindle
hours otherwise permitted by Section III of the Cotton Textile Code.
Administrative Orders 1-116, 1-117 and 1-118, all signed by the
Division Administrator and dated May 6, 1935, exempted individual com-
panies for varying periods from the provisions of the determination of
the Cotton Textile Code Aiithority for the Carded Sales Yarn Group,**
provided said com.panies did not operate any spinning spindle for more
than tvi/o shifts of forty hours each per week as provided by Section III
of the Cotton Textile Code. Administrative Orders 1-122 and 1-123,
both signed by the Division Administrator and dated May 18, 1935, like-
wise exempted individual companies for varying periods from the Code
Authority determination previously referred to and with the same proviso.
Administrative Order 1-120 (signed by the Division Administrator)
of May 7, 1935, granted an exemption to the Bates Manufacturing Com-
pany, Lewiston, Miaine, from the provisions of Section III (a) of the
Cotton Textile Code so that 63 em.ployees were allowed to work 410-| hours
overtime during the week ending April 13, 1935, and 27 employees were
allov/ed to work 186 hours overtime during the week ending April 20, 1935;
provided that time and one-third was paid for all hours worked in excess
of forty per week.
Administrative Order ?-121 of May 10, 1935, stayed the application
of the provisions of Section III (c) of the Cotton Textile Code as to
26 jacquard looms in each plant from May 22 to June 16, 1935, when such
looms were engaged in the production of jacquard woven bedspreads, pro-
vided that the total number of loom hours per week of all jacquard looms
in a plant making jacquard woven bedspreads did not exceed the total
number of loom hours per week permitted by said section of the code.
Administrative Order 1-121A of May 16, 1935, was a telegram signed
by the Division Administrator granting an emergency exemption from the
provisions of Section III (c) of the Cotton Textile Code to the Russell
Manufacturing Company, Middletown, Connecticut, from May 17, t.o 26, 1935,
to the extent that looms engaged in the production of patented webbing
used by the International Tailoring Company might be operated three
shifts of forty hours each per week.
( *) See footnote on page -29 above.
(**) See footnote on page -29 above.
9721
-32-
CHAPTER V
Child Lahor - Section IV
Section IV of the Cotton Textile Code, as originally approved on
July 9, 1933, follows:
"On and after the effective date, employers
in the cotton textile industry shall not
employ any minor under the age of 16 years,"
This section remained unclianged and no exemptions were granted there-
from during the entire history of the Cotton Textile Code.
9721
-33-
CHAPTER VI
Statistical Heports - Section V
Section T of the Cotton Textile Code, iis originally approved
on July 9, 1933, follows:
"With a view to keeping the President informed as to the ohser-
vance or non-observa,nce of this Code of Pair Competition, as to
?/hethor the cotton textile industry is talcing appropriate steps
to effectup.te the declared policy of the Wationa-l Industrial Re-
covery Act, each person engaged in the cotton textile industry
will furnish duly certified reports in suhstance as follows and
in such form as may hereafter he provided:
" (a) T/a^^^es and houi's of labor. — Returns every four vfeeks show-
ing actual hoLirs v/orl^ed by the various occupational groups of em-
ployees eaid minimum weekly rates of wage, ' ,
"(h) Machinery data. - In the case of mills. having no looms,
returns should he made every fon.r v;eeks showing the number of
spinning spindles in place, the number of spinning spindles
actually operating each week, the number of shifts, and the total
number of spindle hours each week. In the case of mills having
no spinning spindles, returns every four weeks showing the n-umber
of looms in place, the number of looms actu^illy operated each
T/eek, the nuriber of shifts and the total number of loom hours
each v/eek. In the case of mills that have spinning spindles arid
looms, returns every four weeks showing the niraiber of sjDinning
spindles a.nd looms in pla,ce; the number of spinning spindles and
looms actually operated each week, the number of shifts, and the
total number of spindle hours and loom, hours eo.ch week.
"(c) Reports of production, stocks, and orders. - Weekly returns
showing pro'.:luction in terms of the commonly used pnit, i.e.,
linear yards, or pounds or pieces; stocks on liand both sold and
unsold stated in the sam.e terms a;nd unfilled orders stated also
in the same terms. These returns are to be confined to staple
constructions and broad divisions of cotton textiles. The Cotton
Textile Institute, Inc., 320 Broadway, New York City, is constitut-
ed the agency to collect a;nd receive such reports,"
Office Order 34, dated September 12, 1933, and Executive
Order 6479 of December 7, 1933, prescribed thot a.11 codes, both pre-
viously and thereafter approved, be modified to require thit all
persons subject to a code furnish such statistical information as the
Administrator might deem necessary for the purpose recited in Section
3(a) of the Act, Administrative Order X-10 of March 16, 1934, required
all persons subject to codes to furnish from time to time such reports
concerning payrolls, employees and ma.n-Iiours worked, upon forms approved
by the Administrator as might be requested by the Bureau of Labor Statis-
tics and Federal and State a{;encies working in cooperation therewith.
The identity of the firm or individual supplying such information was
9721
-S4-
not to be dicclosed.
Aclmlnistrative Order 1-24 of Decem'ber 2, 1933, provided that mem-
■berc of the industry were to f-arnish to the Cotton Textile Institute,
Inc., as the a^e.icy for collecting tne snine , "such additional statis-
tical data with respect to looms in operr.tion, loom hours, spindles
in operation and spindle hours, classified hy the'- "broad divisions and
staple constructions of products of the Cotton Textile Industry and
also such additional data as to numhers of persons and amount of pay-
rolls on a weekly or other basis as the code authority" might" require
for the administration of the code and the performance of its duties
thereunder."
Administrative Order 1-25 of Eecemher 2, 1933, was as follows:
"1. Each memher of the' finishing "oranch of the Cotton Textile, ' ■■
Industry, v/hether jo't) finisher, corporation finisher, or
mill finisher, shall fui'nish to the Cotton Textile In-
stitute, Inc., or to the ?Iational Association of Finish-
ers of Textile FahricG, both of New York City, New York,
as may 'be determined "by the Code Authority, set up by the
Cotton Textile Industry Code, the statistical reports,
data and information relating to finisiiing operations,
as hereinafter described or with such modif icitions as to
periods for filing and detail of reports as nay ''oe pre-
scribed by the Code Authority, Compiled summaries of said
stratistical reports shall be distributed by said Association
to the members of the finishing industry, at such time or
times and in such form and manner as may be designated by
the Sub-Committee on Finishing of the Code Authority. The
statistics, data and information so furnished or obtained
sliall bo treated as confiaential , and neither the v/hole
nor any part thereof s'nall be disclosed or published, ex-
cept in -so far as the figures, data and information there-
in conatincd form a part of s'.id compiled summaries.
In so far as required by the Administrator, such statis-
tical reports, data .^nd information sh'.ll be available
to the ilational Recovery Administr ~.tion.
"2. Each member of the finishing in'r'^.ustry shall certify his
said reports, data and information, when and as requested
by said Sub-Committee on Finishing, All reports, data
■and information fiiTuisned in pnir«i;--ince to the require-
ments 01 these reComm.enc'-ations'V/Iall be subject to veri-
fication, as said Sub-Committee ma.}'' determine, and the
books and records of mem'bers furnishing any such reports,
dp.ta or information, sliall, for the purpose of any such
verification, be opom bo examination b;^'- a competent and
disinterested person or persons, appointed by said Sub-
Committee on Finishing, at such reasonable time or times
as may be designated by said Sub-Committee. If it should
appear that any of said reports, data or information were
wilfully made inaccurate, or were not filed when and as re-
quired by these recommendations, without adeq-uate reason for
9721
-65-
such delay, the exjoense 'Of such exainination shall he
paid hy the memher so in defaiilt,
"3, Hetiirns shall he made every four weeks hy each memher
of the finishing industry showing.4
(a) Machinery data» - The mumher of each tyi^e of produc-
tive machines:
(l) In place ;
(3) Act\ially operated ecich week;
(3) The nnmher of shifts operated each week;
(4) The tota,l nnmher of -oroductive machine hours
operated each vreek.
(h) Froduc t i on ; S tocks . - Weekly returns showing pro-
diiction in terms of the commonly used unit, i.e,
linear yards, or pounds or pieces; stocks on hand
hoth sold said unsold stated in the same terms and
unfilled orders stated also in the same terms.
These retujrns are to he confined to staple con-
structions and hroad divisions,
(c) Credit Information. - Eeports of delirquent ac-
coxmts.for finishing cxiarges and collection per-
centages, which infornEition shall he available to
all members of the industry,
"4, Each memher of the finishing industry, immediately after
the date of a,pproval of these recommendations, shall
file, as ahove provided, a list of all his charges for
extra services and materials, and a statement of all his
outstanding and' active quotations for finishing, includ-
in the names of customers, description of work, yardage,
terms, discounts, allowances and all conditions directly
or indirectly affecting such transactions. Thereafter,
ea,ch finisher slaall, from day to day, v/hen and as made,
except as hereinafter provided, so file a report of every
quotation made for finishing services, whether verhal or
written, including sa-id. details. The iniorraation concern-^
ing saud ra.tes and qi'ptations, except names of customers,
shall he distributed hy said Association to the members of
the Finishing Industry,"
Administrative Order 1-35 of January 15, 1934, provided that the
inventory of productive machinery in place and under contract, re-
quired by the supplem.entary provisions of the Cotton Textile Code
effective October 1, 1933, Ssras to be stated as to the finishing,
thread manufacturing and yarn mercerizing branches of the industry as
of November 13, 1933, the time at which such supplementary provisions
became applicable to those branches hy a.aendments to the code. The
order also provided that the monthly reports, rea^uired to be filed by
the same three branches of the industry v;ere to cover periftds begin-
ning December 1, 1933, instead of October 1, 1933,
9721
Administrative Order 1-36 of onnvoxy 15, 193-1, vras as folloYirs:
"1, Every manufact-'arer of cotton thread as defined "by the
Code of Jair Competition for the Cotton Textile Industry
as ojnended and ajoprovcd Fovemocr S, 1933, sliall furnish
to the Cotton Textile Institute, Inc. suhject to the
disposition of the Cotto:. Textile Industry Committee,
the Code Authority, the statistical reports, data and
information relating to cotton thread man-ofacturing
operations as hereinafter descriood 'or vdth such mcdifi-
cations .as to periods for filing and details of reports
as may he prescrihed "by the Code Authority, All data
furnislied in such reports sliall be held in strict, con-
fidence except as the Administrator may otherTdse re-
quire, and except that compiled siammaries of the in-
formation f'ornished "oy such reports may iDe distributed
to the raemhers of the Cotton Thread Ifenufacturing
Branch of the Industry at such times -and in such manner
a,s the Suh-Committee on Thread may designate.
"2, Al> 'reports, data and inicrma.tion shall he duly certified
v/hfcn and as requested "by the Stih-Coramittec on Thread.
"3. Eiturns sliail be made every four vieeizs by each momber of
the Cottoh Thnread Manufacturing Branch of the Industry
s'hovang:
(a) Machinery d.ata..- The number of spindles of each
type of productive machine:
(1-) I p. place; ■ ''
(2) Actually operated each week;
(3) The number of shifts operated e.ach week;
(4) The total mombcr of productive m.achine spindle
hovijrs operated each '^;cek,
(b) Production, Stocl:s and Orders. - The botal prodiiction
in terns of t"ne coanonly used ^mit, i.e., linear
yards or pounds or pieces dijring each four weeks'
■period; stoc;:s on Jonnd both sold and unsold stated
in the same terms, and unfilled orders stated also
in the same terms, all as of the last day of each
' aforesaid foui- weeks' period."
?721
-.37-
■ ■■, CHAPTER VII
gjB Code Authority ~ ^Section VI
Sectio:a VI of the Cotton Textile Code, as originally approved on
July 9, 13o5, x.T.B as follors; '
"To f^„u'ther effect-aa.te the policies of the Act, the
Cotton Tertile Industry CoiiLuittee , the a^policiints herein,
or such successor committee or committees &s may hereafter
tie constituted hy the action of the Cotton Textile Insti-
tute, the American Cotton " ;anirf.':,cturers Association, and
the lT:,tio-ir,l Association of Cotton I-fen^of- cturers, is set
up to cooperc-te mth the Administrator o,s a plajining and
fair pr,-,ctice agency for the cotton textile industr}^. Such
agenc: ■ ;i,?." from time to time present to the Administrator
recon::end,-,tions "based on conditions in the industry as they
may dev3?.o ;- from time to time r-hich will tend to effectuate
the operation of the provisions of this Code and the policy
of the "J.:;biono,l Industrial Hecovery Act, and in pa.rticular
alon,]; the f ollo^.-'ing lines; ■ ■ ■
"1. Ps commendations as to the requirements "by the Ad-
miniLstrator of such further reports from persons engaged
in the cotton textile industry of statistical information
and heepin:^ of. tmiform accounts as may "be required to se-
ciu-'e the prober observance of the code and promote the
proper oalancing of production s,nd comsumption and the
stahilization of the industry and emplojn-iient .
"2. Ilecomi^endations ;for the setting up of a service
hureru for engineering, accounting, credit, aJid other
pvLTposes to aid the smaller mills in meeting the con-
ditions of the em.ergency and. the requirements of this
code .
"3. He commendations (l) for the requirem.ent "by the
Aduinistra.tor of registr,ation "by persons engaged in
the cotton textile industry of their productive ma--
chinery, (2) for the reqxiiremsnt 'by the Administrator
that prior to the installation of adc.itional produc-
tive ;.iachinery "by -.ersons engaged or enga,ging in the
cotton textile industry, e.xcept for the replacement
of a similar num"ber of existing looms or spindles or
to ""oring the oper.ation of existing productive machin-
ery into balance, such persons shall secure certifi-
cates tliat such installation vrill "'oe consistent with
effectruating the policy of the I'ational Industrial
".ecovar:" Act duriiig the period of the emergency, and
(3) for the granting or withholding "by the Adminis-
trator of such ■ ccrtf icates if so required 'oy him..
9721
"4. Secomuendations for chaii,g'e.s. in,- or exeaptions from
tlie provisions of this code as to the uorking hours of
imcliinsry v/hich will tend to preserve b, 'bo-ls.nce of pro-
dxictivs activity \/rtli cons-umption requirements, so that
the interests of the industry and the puhlic may be
properly served.
"5. " ecomraendations for the making of requirements hy
the Ac3:-:inistrator as to practices by persons engaged in
the cotton textile industry as to methods end conditions
of trading, the naming and reporting of prices i;/hich may
he appropria,te to avoid discrimination, to promote the
staOili::ation of the industry, to prevent end eliminate
i-iivfair and destructive competitiAre prices and practices.
"6. ?.e commendations for regulating the dis'oos.al of dis-
tress merchandise in a, vsr;' to secure the protection of
the cners and to promote sound and stable conditions in
the indr.stry.
II
Iiecomnendations as to the making available to the
sxippliers of credit to those en~rged in the industry of
information regarding terms of, gjid rctual functioning
of cjiy or all of the provisions of the code, the condi--
tions of the industry and regarding the opera.tions of
cxcj and all of the me iber^ of tae industry covered by .
such code to the end thr t d^'oring the oeriod of emergency
available credit may be ads,pted to the needs of such
industry considered as a. ^'hole and to the needs of the
small as well ?,s to the large units.
"o. r.ecoramendations for dealing Fith nny inequa.lities
that ma;" othervjise arise to enda,nger the stability of
the inv..ustry and of production and employment.
"Such recommendations, i,?hen approver by the Administra-
tor, shall have the same force and effect as any other
provisions of this code .
"Sucharency is a.lso set up to coo'-erate i.dth the Admin-
istra.tor in maJcing investigations as to the functioning
and observance of any of the provisions of this Code, at
its ovm instance or on complaant by any person affected,
r-nd to report the ScUiie to the Administrator^,
"Such c^;:enc3'" is a.lso set up for the purpose of inves-
tigating and informing the Ac'jninistrator on behalf of
the Cotton Tortile Indr.stry a.s to the importation of
CGi.voetitive articlss into the United States in si^bstan-
tial oi7.antities or increasing ratio to domestic "oroduc-
tion o:i such terms or under siich conditions as to ren-
der ineffective or siriouslj to enda.nger the maintenance
of this code a.nd a-s an egenc/ for making complaint to
the president on behalf of the Cotton Textile Industry,
9721
-39-
; tmf.er tlie provisions, of tlie ITatio.nal Industrial Recovery
Act, T/itli respect thereto." ■ '
Tlie prosic.ent's order of approval added to the functions of the
"Planning Con.:ittee" of the ind-astr^ the responsibility of consider-:
ing the ' que G t i oil of plans for eventual employee p^Tnership of homes in.
mill village's r:,iC aaking a, report thereon to the l].R.A. prior to
January 1, 1934*
The first r::endiaent to Section ^''I rras approved oy the President
on August 25, l£o3, and '7a,s as follo'-^s:
"Thrt ill the first sentence of Section VI of said Code the
vrord 'and' he omitted, hefore the nords 'the national Asso-
ciation of Cotton Kanufacturers ' and that there oe inserted
after those vords 'and the National Itayon ".reavers' Associa-
tion,' so that the completed sentence shall read a,s follows:
"To fiu^ther effectua.te the policies of the Act, the
Cotton Textile Inr.ustry Comi.:ittee, the applicant
herein, or such successor committea or com. .ittees as ,
maj'"' hereafter "be constituted "bv the action of the
Cotton Textile Institute, the Araerican Cotton I'anu-
factiu^ers Association, the National Association of
Cotton Jianufacturers, and the Fationa.l Eayon '^'eavers '
Association, is set up to cooperate riith the Adinin-
istr,;,tor as a Planning and Fair Practice .^ency for
the Cotton Textile Industrj^. '"
The recu-ireuents approved "by the Administrator, effective Oct-
o"ber 1, 1S5S, designated the Cotton Te^ctile Industry Committee to
examine into and make recomjjiendations to the Administra.tor concerning
applications for certificates for installation of productive machin-
ery. **
Administrative Order 1-23 effective DecemlDer 2, 1333, provided
that the Code Axithority with the conciirrence of the government rep-
resentatives, thereon might require a tempoia.ry shortening of hours
of machine operrtion within a,ny group of the Cotton Te~tile Industry
for periods of not .jnore than ninety days.***
Adminirstr -.tive Order 1-53 of April 9,1S34, delegated to the
Plant Extensio:i Su"b-Comrnittee of the Cotton Texfile Indiistry Committee
the right to ermine into ap'olications for, ond to issue, certificates
for the in'^ta.llr.tion of additional productive machinery, "oursuant to
* This na.s incprpora.ted as Section }II of the Code as finally approved
July 16, rD35. See page 45 helow.
** For fiillsr discussion of this order, see page 17- ahove.
*** See also "cage 19 ahove for discussion of this order.
9721
... -40-
the s-apQle;ientc.r7 provisions of the code effective Octotier 1, 1933,*
in cases ulisrs r.pplicr.tioii for such certificates. \7<as mt.cle for the
insta.llatio:i of 2jrod\ictive riachinery '-'hich (a) \Tas, prior to such
installation, re^gistered •or'.rsr.s.nt to the a+'orementioneo. supplementary
provisions, or .("b) rras, prior to siich installa.tion, the si\uject of a:
certifica.te issued pursuant to the srld supplementary provisions; pro-
vided that cur such a.pplicati.on rrhich mcs denied by sadd SuTDv-Committee
was to ae tr.-nsfsrred to the Administrator for final action o.t the
re cue St of the a;5plicant.
Adrainist:..: tive Order l«93.of Octoher 12, 1S34, delegated, until
further order, to the Plant I;::tensior! Suh-Comj-ittee for the Finishing
Branch of the Cotton Textile Industrj' the ri-^ht to exai'-iine into appli-
cations for, rnd to issue, certificates for the installation of addi-
tional productive na.chinery prr siiant to tne supplementary provisions of
the code ef:'ective Octoher 1, 1935, in so far as such right ■ relates to
the instc.llrtioii of finishing machiaery and eouipuent, in cases where
application for svLch certif ic;-.t9s -res .iF.de for the installp.tion of
machinery "hich had hesn registered or h-d "been the suhject of a certi«
ficate prior thereto. Any application ^-hich ''as denied "by said Suh-
Committee :.-as, at the request of the a,-oplica.nt , to be transniitted to
the national Indiistrial Recovery Eoard for final action. Administra-
tive Order 1-53 of April 9, 1934, i."as rescinded only in so far as its
provisions were inconsistent \7ith the foregoing "rovisions of Order
1-93. , '[ . ~
Office Order 51 of Decemter 27, 1953, provided tha.t no code au-
thority was to hring a suit to, enforce a code without prior approval
of NEA and that any litigation against a code authority was to "be
reported proi.iptly to KRA.
Administr-tive Order 1~55-A was a letter a.ddressed hy the Division
Administrator on :"ay 5, 1934, to the President of the Cotton Textile
Institute, authorizing the Cotton TertiDe Industry CoLunittee, or any
other fair trade practice a.~ency designated 'oy spid comnittee, to
handle trade practice complaints in the first instance under the Cot-
ton Textile Code. Under this authorization the comi.dttee ..light re-
ceive s-ach coiiplrints for a,dj\\stment in the first instance -.Tithout
previous refarence to the I'i^HA State Co. ipliance Director or to any
other ITHA. co-nplirnce agency, "but no couplainant was "o.i'ev3nted from
appealing to the ilBA at any time. The committee was requirec' to
make weehly reports to the Acjninistrator setting; forth the num'ber of
complaints filed with it, the nuC'^'ber of complaints adjiisted, and the
num'ber of coirolaints una.djusted '-ithin each ^-'eel-.ly period, classified
as to the ti'ie of conplaints.
Administrative Order X-29 of May 12, 1954, provided that all
code authorities and industrial a.djust:nent agencies theretofore au-
thorized to handle a particular type of complaint in the first in-
stance '.-ere there"by officiall]- authorized to hanc.le suc"n conplaints . .
Executive Order S711, da.ted I'ay 15, 1934, prescri'bed that no
employer siioject to a code Wras to dismiss or demote any em.ployee for
* See page 1 V ahove . "
9721
-41-
making a coMplr.iiit or giving evidence Y.dth respect to an alleged
violation of the ;orovisions of pny cod.e.
Adrainir.tr^tive Order 1-85 of August 29, 1934, authorised the
Cotton Te::tile Ir.diistry Coinmittee, or any su-h-coranittee appointed bv
it for the purpose, to .aake available to the Reconstrtiction. Finance
Corporation, and to such other govern:ienta,l agencies as were author-
ized by 1:;.T to 3u:oply credit to menfoers of the Cotton Textile Industry,
"inf ormatio-i re;--T'rding terms of, and actual functioning of any or
all of the provisions of the code, the conditions of the industry,
together vfith s"ach other natter pertiy.ent to the supplying of credit
to the indaotry as such, comnittee" ini^^ht deem 3,ppropriate . All in-
formation thus Liade availa.ble \7a,s, at the sejne tiue, to oe laade 8,vail-
able to the 1I?JI.
(Provisions for the collection of code adjiinistration ex'nenses
were never incorporated in the Cotton Textile Code, such e:rpenses be-
ing borne by the Cotton Textile Institute, the American Cotton Manu-
facturers Association, the national Association of Cotton k'anuf acturers,
and the national Ha5'"on Weavers' Association, representatives of which
associations co:.:prised the Cotton Textile Industry Committee. For a
discussion of the vg.rious Executive and Administrative Orders con-
cerning budgets and assessments, see The Content of EIBA Administra-
tive Legislation, Part A, Executive find Administrative Orders,
Chapter XXV.)
9721
-42-
CI14PT3H VIII
Adjustment of Contr-~cts Costs - Section VII
Section VII of the Cotton Textile Cede, as originally approved on
July 9, 1933, follows:
"Tfiiere tile costs of executing contracts entered into
■ in tlie Cotton Textile Industry prior to tlie presenta-
tion to Congress of tie National Industria,! Recovery
Act are increased "by tlie application of tlie provisions
of that Act to the industry, it is equitable and pro-
motive of the purposes of the Act that appropriate ad-
justments of such contracts to reflect such increased
Costs be arrived at by arbitral proceedings or other-
wise, and the Cotton Textile Industry Committee, the
applicant for this code, is constituted an agency to
assist in effecting such adjustments."
No change of any kind was made in this section of the code during
its life.
9721
-43-
CiiAPTEE IX
Mandatory Provisions of the Act - Sections VIII and IX.
Section VIII of the Cotton Textile Code, which set forth the
mandatory provisions of Section 7(a) of the Act and reinaaned i;mchanged
during the lifetime of the code, was e.s follovvs:
"Employers in the Cotton Textile Industry shall com-
ply with the requirements of tiie National Industrial
?.ecovery Act as follows: '(1) That employees shall
have the riglit to organize and bargain collectively
through representatives of their own choosing, and
shall be free from tiie interference, restraint, or
coercion of employers of labor, or their agents, in
the designation of such representatives or in self-
organiza-tion or in other concerted activities for the
purpose of collective bargaining or other mutual aid
or protection; (2) tliat no employee and no one seeking
employment shall be reqxiired as a condition of employ-
ment to join .-my company union or to refrain from join-
ing, organizing, or assisting a labor organization of
his own choosing; and (o) that employers shall comply
with the maximum hours of labor, minimum rates of pay,
and other conditions of employment, approved or pre-
scribed by the President.'"
Section IX of the Cotton Textile Code embodied the mandatory pro-
vision s of Section 10(b) of th.^ Act, remained unchanged througliout the
life of the code, and was as follows:
"This code and all the provisions t-iereof are ex-
pressly made subject to the right of the President,
in accordance wit-i the provision of Clause 10(b) of
the National Industrial Recovery Act, from time to
time to craicel 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
Condi ticns imposed by him upon his approval thereof."
9721
-44- -
CIIAPTEH X
Modification of Code' -Sect icm X. '' ■ ''^
Section X of 'tli.sGGtton Textile .-Coda .nuiained uncliangsd tlirougli-
out tlie lifetime of tlia code arid was as follows: , ,
" Such' of til e previsions of tliis wode as are not re-
quired to 1:6 included tlierein by tlae National Indus-
trial Recovery Act ^npj, iwitii tlie ■ approval , of the
President, be modified or eliminated as changes in
circumstences or experience may indicate. It is con-
templated that from time to time supplementary provi-
sions to this- Code or additional codes will be sub-
mitted for the' approval of the President to prevent
■unfair competitive' practices and to effectuate the
other purposes and policies of Title I of the Nation-
al Industrial Recovery Act consistent with the provi-
sions hereof."-
9721
-45-
CHAPTSa XI
Ownsrahiy of Mill Village Eomcs --Section XI.
Section XI of the Cotton Textile Code was a revision of one of the
conditions in tlie President' s original order of approval of July 9,1933.,
liecajae apail't of tiie code as finally approved July 16, 1933, was never
modified and was as follows:
"It sZiall be one of the fxmctions of the Planning
and. Fair Practice Agency provided for in Section VI
of tae Code to consider the question of plans for
eventual employee ownership of homes in mill villages
and submit to the Recovery Administration prior to
January 1, 1934, its report in the matter."
9721
-45-
CIIAPTSH XII ^
Office Em'oloyees - Section XII
Tlie condition in tlia Pre:Sid8nt' s order of approval' of ' the Cotton
Textile Code, dated July 9, 1933, "tiiat office employees be included
within the benefits of the code" was apparently interpreted by the
industry coinraittee as referring only to hours of labor for such employees.
At all events, the, following, sug^je jted by the industry cominittee, was
incorporated as Section XII in the code as finally approved by the
President on July 16, 1933:
"On and after July 31, 1933, the maximum hours of
labor for office employees in the Cotton Textile In-
dustry shall be an average of forty hours a week over
each period of six months."
9721
-47-
' CHAPTER XIII- ■
Wage Differentials - Secticn XIII
One of tie conditicns in tie President's order of approval of the
Cotton Textile Code of July 9, 1933, was that "the existing amounts "by
TOliich wages in the aigher-paid classes, up to workers receiving $30 per
week, exceed wag is in the lowest paid class, shall l)e maintained".
The industry committee proposed the following wording for this coi di-
tion which was accepted ty the President and incorporated as Section XIII
of the code as finally approved on July 16, 1933:
" Tiie amouxit of differences existing prior to
July 17, 1933, "between the 'wage rates paid various
classes of employees (receiving more than the esta'b-
lished minimam v/age) shall not "be decreased — in no
event, however, shall any employer pay any employee
a wage ra.te which v/ill yield a less wage for a work
week of 40 hours than such employee was receiving
for the same class of work for the longer week of
48 hours or more prevailing prior to July 17, 1933.
It shall be a f^onction of the Planning and Fair
Practice Agency provided for in Section VI of the
Code to o"bserve the oporaticn of these provisions
and recommend such further provisions as experience
may indica,te to "do appropriate to effectuate their
purposes. "
On November 8, 1933, the phrase "classified according to occupa-
tions" was added after tie phrase ""between the wage rates paid various
classes" in Section XIII "by an amendment approved by the President.
Administrative Order 1-38 (signed "by the Division Administrator)
of August 31, 1934, ruled that the terra "wage" as used in Section XIII
of the Cotton Textile Code "meant the total compensation received for
the class of work performed "by the employee" ;> further, the week
immediately prior to July 17, 1933, was to "be used in determining the
wage to "be received for the longer work week. Therefore, as stated
in the order, it was incumbent upon a certain mill subject to the
code which gave all its erai^loyees a bonus of 10 percent for each of
two weeks prior to July 17, 1933, to include such bonus in its calcu-
lation of the wage for the work week of 40 hours prescribed by the
code - in other words, the mill, wiaich was on a 54-hour week prior
to the code, was compelled to raise its wages 35 percent on the
basis of its previous v/age rate plus the bonus of 10 percent, above
referred to.
9721
CIIAPTSH XIV
Maximam Hours - Hepair Sliop Crev/s, stc. - ^efet.ion XIV.
One of the conditions in tiie President's order of a,pproval of the
Cotton Textile Code, dated July 9, 1933, was that ' time ajid one-half "be
paid for overtime to repair sl^^p crew's, engineers, electricians and ■
watching crews "because of their exception from the majcinMm hours, pro- •
vision. The industry committee suggested in lieU'thereof the follow-
ing, which was accepted "by the President on July 16, 1933, and incor-
porated as Section XIV in tlie code as finally approved:
"On and after the effective date the maximum hours
-.of la'bor of repair shop cre'.?s, engineers, electricians
and watching crews' in the Cotton Textile Industry
shall, except in case of emergency work, be forty hours
a week with a tolerance of 10 percent. Any emergency
time in any mill shall be reported' monthly to tlie
Planning and Pair Practice Agency provided for in
Secti.on VI of ' t.ie Cede, througli the Cotton Textile
Institute."
This section of the code remained unmodified t'arouj;hout its life-
time, and no exemptions were granted taorefrom. -
9721
-49-
CIIAPTEE 2V
7ork AssL^mnent - Sections XV and XVII
Tlie condition concernin'- "stretch-outs" in tne Executive Order
of approval of t^ie Cotton Textile Code, dated July 9, 1933, sliglitly
revised "03^ tl:ie industry convnittee, was incorporated as Section XV in the
code as finally appi-oved on July 15, 1933:
"Until ado'ption of further provisions of this code that may
prove neccsGp.ry to prevent ajiy improper speeding up of work
(stretch-outs), no employee of any mill in the Cotton Tex-
tile Industry shall he required to do any work in excess of
the practices as to the class of work of such employee pre-
vailing; on July 1, 1933, or prior to the Share -thc-Work-Hove-
ment, unless such increase is suhmitted to and approved "by
t>.e at;ency created by Section 6 of the' code s,nd by the h"a-
tional Recovery Administration."
Ad:iini strati ve Order 1-16 of August 8, 1935, approved tg.e following
ajnencbient to the code, vdiich was incorporated as Section XVII thereof,
superseding Section XV, ahove:
"To niai:e proper provision with regard to the stretch-out
(or specialization) system or any other problem of working
conditions in the Cotton Textile Industry, it is provided:
"?1. There shall "be constituted "by appointment of the Adninis- ' '
trator a Cotton Textile National Industrial Helations Board,
to be composed of three rnenibers, one to be nominated by the
Cotton Textile Inc^ustry Committee to represent the employers,
one to be nominated by the Labor Advisory Board of the Na-
tional Recovery Administration to represent the employees,
and a third to be selected by tiio Adiiinistrator. This na-
tional Board shall be provided by t"x:.e rational Recovery Ad-
ministration with a per diem for actual days engaged in its
vrork a;.id with sucli secrets^rial and expert technical assist-
ance as it jiay require in the performance of its duties.
"3. Tl.c Adainis tractor, upon the nomination of the Cotton
Textile national Inclustrial Helations Board shall appoint
in each state in which t.-ie cotton textile industry operates
a State Cotton Textile Industrial delations Board composed
of three members, one of w"iiom shall be selected from the
employers of the cotton textile industry, one from the em-
ployees of the cotton textile industry, and a third to repre-
sent the public.
"3. 'Xienever, in any cotton textile mill, a controversy
shall arise between employer and. employees as to the stretch-
out (or specializa.tion) system or any other problem of vrork-
in-; conditions, t"he employer and the employees may establish
i - such mill an Industrial Relations Covimittee chosen from
the management and the eiployees of the mill and on which the
9721 -
"50.-
.--„ ^.. - a.'- -<. ■ ■-■■ ■-l"-'-iJ-
craployer aiicl the cRiployees nliall 'have equal representation
of not more than -three repxesentatives ce,ch. If such a com-
mittee is not cthcrwise ectatlishcd, the employer or the em-
ployee, or hcth, may apply to the State Industrial Relations
Board for assistance' and, cooperation, in the estahlislTment in,
such mill of such industrial relations com..!ittee. The tenn
of service of each such mill committee shall "'oe limited to
the adjustment of such controversy or pro'blem of working con-
ditions for the adjustment of \yhich the committee was created.
"If the representatives of the employers and. of the employees
in such industrial relations committee are unahle to arrive
at SJ.1 agreement and united action with respect to such differ-
ences of opinion, the representatives of tiie employers or the
emT)loyees, or hoth', may appeal to the State Industrial ' Rela-
tions Board' for cooperation and assistance in arriving at an
a^'reement and united a.ction.
"It shall "be the duty of such Industrial Relations Committee to
'endeavor to adjust, such controversy. In cases wnere such com-
mittee reaches a,grecment with respect to any such controversy,
such agreement shall "be final except that it shall he su'brait-
ted to the Cotton Textile National Industrial Relations Board
for review and ap;oroval under such regulations as such I'Tation-
al Board may esta'blish.
"This provision for such industrial relations committee within
the particular mills sh-aJil he y/ithout prejudice to the freedom
of association of caployc'es and the other provisions of Sec-
tion 7, of the Industrial Recovery Act.
"4. It shall he the duty of the State industrial Relations
Board, where their assistance is requested, as provided in suh-
scction 3, tc cooperate with employers and employees in organ-
izing industrird-relations committees in individual cotton
textile mills and to cooperate with such commit toes in the
development of conference procedures and in the a^djustmcnt of
differences of opinion with respect to the operation or intro-
duction of the stretch-out system and other problems of work-
ing conditions.
"In the event that the State Industrial Relations Board is
unahle to "bring a'bout agreement ajid united action of lahor
and management in a controversy so appealed to it, such State
Industrial Relations Eofird shall present the controversy to
the national Industrial Relations Board for hearing and final
adjustment.
"5. The National Indxistrial Relations Boa.rd sha.ll hoar and
finally deter.iinc all such questions brought "before it on ap-
peal by the State industrial Rcla.tions Boards acid certify its
decisions to the Adainistrator aaid shall have autho'rity to
codify the experience of the industrial-relations' committee
9721
of t.e various mills pnd state 'boards with a view to csta.'b-
TiistiiiiQ standards of .-i^eneral practice with respect to the
stretcli-out (or specialization) orstcm or other prohlems of ■
AcuiiinistrativG Order 1-75 of Jnly 10, 1934, approved an aintmanient
to Section X?II Avhich changed the first (■unn-umbcrod) paragraph of that
section hy adding after the phrase "To make proper provisions with re-
gard to" the following:
"any prohlem of workin,^ conditions in the Cotton Textile
Industry, including hut without limitation all claims and
complaints of discrimination, representation, incorrect en-
tries on po.y envelopes, unwarranted reductions in classifi-
cation, increased stretch-out, alleged violations of Section
7 (a) of the Industrial Hecovory Act, and all other alleged
violations of coo.e provisions affecting relations "between
employers and employees, ..."
The saime phraseology was added to the paragra^ph nurahered 3 in, lieu of
the phrase "as to the stretch-out (or specialization) system or any
other prooleu of working conditions."
Tile amencinient of July 10, 1934, also increased the membership of
the Cotton Textile ITational Indxi.strial Selations Board (set forth in
paragraph 1) to five, "two to he nominated by the Cotton Textile Indus-
try Committee to represent the employers, two, at least one of whom
shall he from the employees of the Cotton Textile Industry, to he nomi-
nated hy the Lahor Advisory Board of the National Recovery Administra-
tion to represent the employees, and a fifth to he selected hy the
Administra.tor" . Further, this ainendment cla^rified the last paragraph
of the section numbered 3 by stating" fehiat.l.the provision for industrial
relations committees was to he "so construed as to pernit the employees
freely to choose their own representatives in full compliance with the
provisions of Section 7 (a) of the Industrial Hecovery Act."
Executive Order 6840 of Septemher 5, 1934, created in connection
with the Depa,rtment of Lahor under aiithority of Puhlic Resolution 44 of
the 73rd Congress the Board of Inquiry for the Cotton Textile Industry
to inquire into the general ch8.ra,cter and extent of the complaints of
the workers and the prohlems confronting the employers in the cotton
textile, wool, rayon, silk and allied industries, and to consider ways
and means of meeting said prohlom^s and complaints.
Executive Order 6858 of Septe:iiher 26, 1934, created the Textile
Lahor Relations Board, composed of three Special Commissioners appoint-
ed hy the President, under authority of Puhlic Resolution 44 of the
73rd Congress in connection with the Department of Lahor. The Board
'jas authorized to investigate, hold hearings and mai-ce findings of fact
as to a.ny alleged violation of Section 7 ( a) of the Act, and to refer
such findings to proper governmental agencies for appropriate action;
and with respect to codes for the cotton textile, silk textile and wool
textile industries, to investiga.te, hold hea,rings and make findings of
fact as to any alleged violations of said codes with respect to hours
of v/ork, rates of pay or other conditions of employment and to refer
9721
-5.3-
such. findings to the proper agencies for appropfiate action. Appeals
on questions of law in cases involving Section 7 (a) of the Act or
parts of codes might te taken from the Textile Lahor Relations' Board to
the National Xahor Relations Board in cases in ?;hich (l) the Textile
'Lahor Relations Board recommended reviev?, (2) difference of opinion
existed in the Board, or (3) the National Lahor Relations Board deemed
review would serve the pu^blic interest. This Executive Order also
abolished the Cotton Textile National Industrial Relations Board, the
Textile national Industrial Relations Board and the Board of Inquiry
for the Cotton Textile Industry.
An'sm.enctment of the Cotton Textile Code, approved Cctoher IB, 1934,
"by the President, .repealed Section ZYII of the code and substituted the
following therefor:
"(l) ' The Textile Labor Relations Board shall appoint a
Cotton Textile Work Assigix'ient Board, to bo composed of an
impartia,l chairman, one representative of the caraloyers sub-
■ . ject to the Code of Fair Coropetitiou for the Cotton Textile
Industry, and one representative of the erai^loyees in that
Industry. . ■ . ' •
■ "(2) In order to provide opportuiiity to dcvclcpe a sound
method and adequate organization for tue re-'-y.lation of v/ork
assignments, no em,ployer prior to Rebruarj'' 1, 1935, shall
make aaij change in work assignment of any class of employees
r- which sha.ll increase the effort required over that prevail-
.■■■„ ing on September 21, 1934.
; "During this period the number of loom.s, frames or other
ma.chines required to be tended by any class of employees
shall not be increased where the character of the raw ma-
terials, yarn, construction of cloth, preparat*:fy;pro cess-
es, type of equipment used, or character of finish or
put-up, is not chaiigcd. iTnerc such chan.ges do occur the
number of machines tended by such Gmployces may be in-
creased or decreased in such manner as Y/ill not increase
the amount of effort required of the worker.
"l?liej.-e, during the period above referred to, a mill re-
sumes the manufacture of any specific product which it
has made within six months prior to September 21, 1934,
and where the conditions of manufacture enumerated in the
preceding paragraph are not changed, then the work load
formerly used on such product shall be the gu-ide in deter-
mining the proper work assignment.
"'■Jhere, on September 21, 1934, a no'-r style of yarn or cloth
or any other new type of pi-oduct was in course of intro-
duction or is thereafter during the period above referred
to introduced into a mill or finishing plant, a tentative
Yrorlz load may be established 6.uring the period of deter-
mining a proper work load in accordance with the foregoing
principles.
9721
-53-
"(3) Prior to Pel^raary 1, 1935, on petition of any
emTDloyee or erax)loyer affected, or his representative, or on
its o'-Ti motion, the Cotton Textile ¥ork Assignment Board may
investigate any work assignment which has been increased, ■
since Jiily 1, 1933, at any mill a,nd the mill shall show the ■. '
reasons for such increase. If after hearing the Board finds
such assignment requires excessive effort it may require ,i-.ts''-^'-_ „ .,
reduction accordingly. ■; ,,i.,o^' ■■'''-'"
"(4) The Cotton Textile Work Assignment Board shall'; i '
have authority to apiDoint district impartial chairmen and ; such
other agents as it may select and to issue rules and regula-
tions to carry out the foregoing provisions of this Section.
"(5) The Cotton Textile YiTork Assignment Board shall,
subject to instructions of the President, make a study of
a,ctual operations in representative plants and report to the
President a.s to a permR,nent plan for regulation of work, assign-
ments in the Industry."
Executive Order 6878 (1-93 3) of October 16, 1934, provided that'
the Textile Labor Relations Board was to appoint a, single individual -as
common chairman of the Cotton Textile, Silk Textile and fool Textile
Work Assignment Boa,rds, and that a,ll genera,l rules and regulations .
involving products manufactured under more than one of the above codes
were to be observed jointly by the work assignment boards for those
codes. The work assignment boards were to study the actual operation
of the stretch-out system in a number of representative plants and were^^
to submit to the President before January 1, 1935, recommendations for
a permanent nlan for re=sulation of work assignments in the respective
industries embodying, unless good cause was shown to the contrary, the
following principles:
(a) IJo employer was to increase work assignments of any class of
work until he had secured authorization therefor from the district
impartia,l chairman, v/ho was not to authorize extensions of work assign-
ments unless
(1) The employer hp^d filed with the district impartial
chairman and r-'ith the representatives of the employees
affected a petition for authorization of extension of
work assignments, with a sworn statement indicating the
conditions ^-'hich had been established at the mill as the
basis for extension.
(2) A period of six weeks had elapsed since the filing of
the petition.
(3) Either the representatives of labor affected had not
filed a protest to the proposed extension before the end
of the six-weeks' period or, if such protest had been
filed, there had been a public hearing, with such
investigation as the district impartial chairman might
deem advisable, and the conditions found justified the
extension.
(b) The district impartial chairman, on petition by the representa-
tives of any employees affected, was to investigate the justifiability
of existing labor assignments and, if he found any assignment involving
9721
-54-
excessive efforts by the workers, . lie was to require the employer to
reduce such assignment,
,. c(c) Decisions of the district chairman rendered, under the above
jicPQ-Tisibns were to be subject to appeal to the Textile Vifork Assignment
3oard:v?vrhose decision was to be finalo
. Executive Order 6930 (1-1C2 A) of December 27, 1934, provided that
the Qftttohv Silk and Wool Te::tile Work Assignment Boards would not be
required to loresent recommendations for regulation of work assignments
before January 1, 1935, as required by Executive Order 6878, (*) but
were to present such recommendations within a. reasonable tine after
January 1, 1935, and in the meantime were to malte monthly reports of
their activities and progress to the Secreta,ry of Labor,
An amendment to the Cotton Textile Code approved January 31, 1935,
changed the words "February 1, 1935" in s\ibsections (P) and (3) of
Section XVII, as oreviously amended October 16, 1934 (**) to "one
month after the report to the President as to a permanent plan for
regulation of work assignments in the industry as provided in sub-
section (5) hereof,"
(*) See page 53 above.
{**) See page 52 above.
9721
■ -55-
CHAPTER XVI
Len^^'ith of Q-neration of Code - Section XVI.
The President's order of approval of July 9, 1933, ste^ted that
the approval ^?as limited to a four noxiths' period r/ith the right to ask
for nodif ica.tion 3.t any time pnd for renevra.l for another four :raonths at
any tine oefore its exioiration. In lieu of that condition, the industry
comnittee suggested the following which ',''as ap"oroved "by the President
and incorToorated as Section XVI in the code as of July 16, 1933:
"This code shall he in operation on and after the
effective date as to the \7hole cotton textile industry
except as an exemption from or a stay of the application
of its provisions may he granted hy the Administrator to
a person applying for the same or except as provided in
an executive order. ITo d.istinction shall he made in sixch
exemptions hetween persons ^Tho have and have not joined
in applying for the approval of this Code."
This section of the code remained unmoc'.ified during its life-
time.
3721
CHAPTSr. XVII
Synthetic Fit'ei- Production - Soction XVIII.
An amendment to the Cotton Teictilc Code s:y^TO\-ed. 07 the President
on August 25, 1953, among other thin£;s provided that the follovdng
should he added to the code as Section XVIII:
"Any manufacturer operatinr' silk looms knovm to the
trade as a silk manufacturer and so listed in the trade
directories may elect not to "be boiond hy any of the pro-
visions of this Code T7ith respect to its synthetic fiher
production as herein defined above, provided, ths.t notice
of such decision "by such rarnufacturer shall "be filed in
writins;^ i:?ith the Cotton-Textile Institute, Inc. at its
office at 320 Broadviay, He^7 York, N. Y. , not later than
6:00 P.Ii. Eastern Standard Time, on the tenth day follow-
ing the approval of this paragraph,"
This section of the code remained unchrnged throuHiout its life-
time.
q7?i
CHAPTER XVIII
Suioplementai?,^ aaid Divisional Codes«
A. Carded Cotton Yarn»
On Deceralier 29, 1933, the Administrator ap iroved an amendxaent to
the Cotton Textile Code which added thereto trade practices governing
the merchandising of carded cotton yarn. These trp.de practices \7ere
suoseqiiently amended on Pehruary 21, 1934, and Janua,ry 22, and April
23, 1935. Appendix I sets forth these fair trade practices '7ith the
amendments thereto interspersed among the affected sections. (See
page 81)
B . Cotton Converting'; Ind-gstry.
A code sup' elementary to the code for the Cotton Textile Industry
Tias approved for the Cotton Converting Industry on January 24, 1934,
which supplementary code was a'..;ended on Decenoer 27, 1934, Appendix
II sets forth this sup -~>lementa.ry code with the changes ma.de hy the
amendment of Decemher 27, 1934, interspersed among the affected sec-
tions. (See page 85)
C . Cotton Thread Manufacturin.g:«
An amendment to the Cotton Textile Code ap;oroved July 17,11334,
added thereto fair trade practices governing merchandising of the
products of the cotton thread raamji's.cturing branch, which fair trade
practices were ?j,iended on September 11, 1934 and March 2, 1935.
Appendix III sets forth these fair trade practices with the amendments
thereto interspersed among the affected sections. (See page 102)
9721
-53-
J\PEEliriIZ I.
Trade Pra.ctices G-overnin,^: the IferchF.ndisin;^ of
"Carded Cotton YrJ'n
As Ap"oroved on December 29^' 1953.
"1. Definitions. . .
"(p;) 'Spinning mill' is any Kamtfacturer spinning carded cotton
yarn to te sold as sucii, whether selling with or witho^at the employ-
ment of a selling agent.
"("b) 'Selling a,gent' is any person, '■'hether laiown as a commis-
sion house, yarn merchant or otherwise, who sells ca.rded cotton yarn
in the relation of an agent for a spinning mill, who receives a com-
mission for his ■ services, assiimes the ohligo.tion of effecting sales in
the interest of the spinning mill and :'7uarantees the acconnt of the
purchaser, the mill "being the principal in 8,11 trejisactions and heing
furnished with the names of all pros-rective purchasers when sales ne-
gotiations are opened, the guarantee of performance of the contract
"being a matter for special asreemenj: oetween the spinning mill and the
selling agent. (*)
"(c) 'Commission' is the sum paid or a,llowed to an agent for
his services to a s'linning mill in the sale of carded cotton yarn.
"(d) 'Broker' is one who brings together spinning mills and
purchasers and receives, on each transaction vdiich the mill com-
pletes hy delivery, a "brokerage fee on the price of the order, "but
does not guarantee the account.
"(e) 'Purchaser' is anyone who "bu^-s carded cotton ya,rn for his
own account or for that of sn affilic':te or subsidiary or parent organi-
(*) The following sentence was added to this section "ijy an amendment
approved January 22, 1935:
""Where the performance of the contract is g^ia.ranteed
"by the selling agent, however, it is not obligatory
upon the selling agent to furnish the s'oinning nil!
with the name of the prosjective customer."
9721
-59-
zation. {'*)
"2. Spinning mills shall furnish duly certified reports each week
to the Statistical Biireau of The Cotton- Textile Institute, Inc., 320
Broadv.ray, Ne'v York City, of all sales of carded cotton yarn during the
Tsreek immediately prior (except sales made through selling agents),
stating sa,me "by date of order, quantity and description of yarn, delivery
specifications, price to he paid, and terras of sale. Selling agents
SHaall-- file similar reports as to all sales made on hehalf of spinning
mills. (**) Statistical reiDorts shall he issued rreekly he the Insti-
tute to all spinners and selling agents summarizing such statistical
(*) The following sections 'Tere added hy an amendment approved Feh-
ruary 21, 1934: ■ ■
"(f) 'ExiDort Sales' are sales of carded yarn
destined for shipment a,s carded -yarn to any
foreign country (including the Philippine
Islands, the Virgin Islands, Amerlca.n Samoa
and the Island of Guam).
"(g) 'Exporter' is a spinning mill, selling
agent, purchaser or any other person engaged
in the business of selling carded yarns to
purchasers located in foreign countries.
"(h) 'Registered Exported:' is an e:c30rter of
carded yarn who shall he registered as such with
The Cotton Textile Institute, Inc., 320 Broadway,
Hew York City. The Institute shall from time to
time cause to he filed with the Cotton Textile
Industry Committee lists of stich registered ex-
porters. "
(**) The following sentence was added hy an amendment approved Febru-
ary 21, 1934:
"Spinning mills and selling agents shall
separately re;nort to the Institute all ex- ,
port sales giving, as to each ex2jort sale,
the name of the exijorter."
9721
-6C-
received. (*) '
"3.' ilo spinning mill, selling directly, shall make any price
to a piirclir.ser or any allo^7ence to a purchp.ser in the guise of com-
mission, hrofeerage, dealer -s disco-ont or fee, either directly or
indirectly, or hy any secret rehate, advantage, indiicement, compensa-
tion, gift or otherTTise, "by \Yhich axij p"urchaser shall,, in effect, pay
less price thaji the. price vrhich such spinning mill would^ quote if
dealing through selling agents, C6r.miission shall be paid only to
"bona fide selling agents registered as such vfith The Cotton-Textile
Institute, Inc. '
"4. To selling agent shall, directly or indirectly, "b],' way of
commission, discorijit, fee, secret rehate, advantage, inducement, com-
pensation, ,:;ift or otherwise, split or divide with or pass on to the
purchaser the connission or any part thereof v/hich he receives from
the spinning; mill.
"5. Selling', agents shall not, directly or indirectly^ whether
through a suhsic.iary or an affilia-te or otherwise, h-uy stocks of carded
yarn for their own account or for that of a subsidiary or affiliate
or parent organization, engage in short selling or guaranteeing prices
against decline; hut a, selling agant may sell for his own account any
yarn which he may he reauired to t3l:e over ly reason of his guarantee
of a purchaser's account or contract.
"6. ITo spinning mill shall, '.either directly or through a selling
agent, gua^rantes prices against decline, or directly or indirectly
abate prices on unfinished contracts, except to the extent that costs
are affected by subsequent Governmental action.
"7, iTo spinning mill shall, either directly or through a selling
(*) The above section 2, as amended, v.'a.s deleted by pn amendment
a'oproved. A'Pril 23, 1935 and the folloving v'as substituted there-
for; . . •
"Spinning mills shall furnish duly certified reports each
week to the Stastical Burea.u of the Cotton-Textile Institute,
Inc., 320 Broadway, New York City, of all sales of carded
cotton yarn during the week ira.aedia,tely prior, irrespective
of the manner in which such sales are negotia,ted, stating
sr;,.ie ^oy date of order, quantity and descriptions of yarn,
delivery specifications, price to be paid, ajid terms of sale;
indicating in the case of each sale negotiated through a
Ecllin- agent, the :.:ame of the selling agent who negotiated
such sale.. Selling: a-ents shall file similar reports as to
all sales made on behalf of -spinning mills. Spinning mills
cjii. selling agents shall separately report to the Institute
3.11 e:rport sales giving, as to ea,ch export sale, the name of
the exporter. Statistic?,! reports shall be issued weekly
by the Institute to all spinners and selling agents s-ummariz-
ing such statistical information received."
9721
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agent, grant to a,ny purchaser on any sale of any type of carded yarn
sold as such more favorable terms of cash discount than 2^^ discount
for pajnnent within 30 days or 2^ discount up to the 10th proximo, as
may he elected "by the purchaser. (*) All yarn, other than as herein-
after mentioned, shall "be sold net vreight. Not more than five days'
grace shall he allowed in any discount periods All sales providing
for settlement either in any medium other than cash or for longer
periods of time than those a"bove specified shall be absolutely net. On
sales of "ball warps, chain warps, wa.ros on beams and similar put-ups
such yarn shall be sold on the basis of calculated weight with 2^^
tolerance. The foregoing stipula.tions in this clause apply only to
domestic sales. (**)
"8. In all sales effected by spinning mills, whether directly
or through a selling agent, there shall be used a 'uniform form of
contract', after such form shall have been siibmitted to the Adminis-
trator by the Code Authority and received his approval.
"9, ITo provision herein shall apply in respect to orders placed
before the effective date of these provisions which remain uncompleted
on that date.
"10. Administration of these provisions 'Governing the Merchandis-
ing of Carded Cotton Yarn' is entrusted to the 'Carded Yarn Sub-Com-
mittee', constituted by t"ne Cotton Textile Industry Committee, subject
to the authority and jurisdiction of the latter committee, i.e., the
Code Authority for the Cotton Textile Industry,"
The following was added as section eleven by an amendment ap-
proved February 21, 1934.
"11. The foregoing provisions, with the exception of Articles 1
and 2 hereof, shall not ajoly to export sales to, by, or for the ac-
count of a registered exporter. Each spinning mill or selling agent
reporting an export sale to the Cotton-Textile Institute, as above
provided, shall obtain from the exporter and keep on file documentary
proof, (similar to that required to be filed with the Collector of
Internal Revenue in support of a claim for drp.wback on exportation) ,
tha,t the carded yarn which was subject of such export sale shall have
been, in fact, ex"ported to a foreign country. In the event of the
failure of any registered exporter to submit, within a reasonable
time, such documentary proof to the spinning mill or selling agent,
reporting such export sa.le, the nn^e of such exporter, after due notice
and opportunity to be heard by the Ca-rded Yarn Sub-Committee shall have
(*) The following sentence was added by an amendment approved January
22, 1935.
"In the case of sales made on the basis of 2^ discount
up to the 10th proximo, shipments made on or after the
25th of the month may be dated as of the first of the
following month. "
(**) An amendment to the code approved February 21, 1934,
deleted this last sentence and added in lieu thereof
number eleven, see below.
9721.
_P9— .
"been given to such exporter, may, on recommendation of said Subcommittee,
be v/ith.draT'n from the list of registered erporters, by the Industry
Committee. Such withdrawal of registration shall be subject to review
by the Atoinistrator . "
9721
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iPPEil3IX II
SUPPLSLIErTATT CODE 0? lAll. COiPETITIOr .
fo"- the
' OaTTOr GOrTH-^TirG INDUSTRY "
As Approved on Janr^arj' 24, 1934.
"To effectuate the policies of Title I of the ITetional Industrial
Recover^r Act (herinafter referred to as the "Act"), the follo\?ing pro-
visions are established as S-apr>lernental Code i^o. 1 to the Code of Fair
Competition for the Cotton Textile Industr^'', to deal v/ith trade practices
in the sale and distribution of the products of that Industry.'', and shall
be the standard of fair competition for such Industr-- in respect of
such sale and distribution, and shall be binding upon everv member there-
of in the manner and to the extent therein provided.
I. Definitions. - (l) "Master Code" means the Code of Fair
Competition for the Cotton Textile Industry, finallv approved
July 16, 1933, as heretofore or hereafter amended.
(2) "3ranch of the Industry'-" means the sale and distribLition
at wholesale of products of the Cotton Textile Industr;r by any
concern insofar as it does manrifacturing and/ or finishin;-^ of
the S3,me for its own account or the accoujit of others or has
the game finished by others for its ov/n a.ccount or for the
acco'ont of others, or Isy e. commission house or broker acting
for same. . . -
(3) "Me;aber of branch of the Industry" mea.ns any business en-
tity enga.^-ed in thisbranch of the Industry''.
(4) "Finished goods" raesjas grey goods, products of the Cotton
Textile Industr;-, after being processed or finished in the com-
pleted fabrics a? intended for use.
II. All members of this branch of the Industry shall be sub-
ject to and comply with the provisions of the I%ster Code in
addition to the applicable provisions of this S-uppiemental Code.
III. There shall be constituted at this time in this branch
of the IncLustiy the following divisions of finished goods, the
precise scope of these divisions being further defined in Sec-
tion V hereof:
1. Clothiers' Linings (other than 3,11-cotton) .
2. Corset, Brassiere, ajid Allied Trades Fabrics.
3. All-Cotton Clothing Lining.
4. Curtain and Drapery Fabrics.
5. Shirting.
6. Wash goods.
9721
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7. Interlinings. l/
Anything herein or in Section V hereof to the ccntrar:,' not'r'ithstanding
the foregoin^^ divisions shall not include the follovin;::
Moleskins and cv/rdiircs;
Bleached ride sheetings, p.ieets, oilloT: cases, dyed duclcs;
Un"bleached, bleached, colorec, dyed ajid printed flanjiels;
suedes and. d.uveteens;
Outerwear material such a? mineral and sulphur lcha]<:is, ducks,
suramer suitings, pantaloonin'_ ■, rrincoating, vcter-proof
clothing faorics, and all other converted fabrics for
simile.r purposes; ,
Towelling, crashes, and plain blea.Ghed Terror Cloths;
Table damask and napkin fabrics;
Birdseye and diaper cloths.
IV. All members of this branch of the Industry insofar as their
activities fall within ajiy of the divisions enumerated in Section III
hereof shall com-oly rith the following general niles of trade practice:
1. The secret pavment or allo'"mce, directly or indirectly, or
by any scheme, method, or device, of rebates, refunds, commissions,
credits, or unearned discoxints, whether in- the form of mone7/ or other-
wise, or the secret e:^:tension to certe.in purchasers of special services
or privileges not extended to all purchasers on like terms and condi-
tions is prohibited.
2. The false marking or branding of any product which has the ten-
dency to mislead or deceive customers or prospecti\-e customers in any
way whatsoever is prohibited.
3. The imitation of ' a trade mark, tr die name, slogan, or the
other marlcs of identification of comr)etitors, halving the tendency and
capacity to mislead or deceive is proiiibited.
4. Upon approval of th.e .i;.dminist native Comraittee of a "olan of
registration, members of this branon of the Indiustry ma.-- register with
the Textile Fabrics Association the follcing: Jacquard designs, twenty-
ha^rness dobby designs, prints, and. such other designs or styles as may
be considered as novel. Upon registration, such designs or styles shall
be confined to the registrant for a sir.-month period and for an addi-
tional six months thereafter, if within the first six-month period the
registrant cam demonstrate to the satisfaction of the Administrative
Committee that he na.s caused the manufacture in further quantity of said
design, pattern, or style. At the end of the second six months' owner-
ship period, the registrant may obtain rene^rals of all rights to such
design, pattern, or style by semiannual re- registration. A proper re-
gistration fee will be determined b-" the AdLminist native Comnittee.
1,/ The following divisions "ere added b-r an ajnendnent a"ouroved December
27, 1934. • ■ -
"8. Bleached Goods.
"9. Cotton Linings, for a.ll mirposes not other'-ise -orovided."
9721
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JIo member of this branch of the Industry shall commit or be a uar-
ty to the piracy of any desi.^m, pattern, or style originr.ted by another
member of the Industry in a form sitfficiently like the original to be
mistaken for it, or the sale tnereof, or sell or quote on the pattern,
design, or style of another member of the Industry.
V. Members of this branch of the Industry insofar as their activi-
ties fall within any of the divisions described in Section III shall
comply \Yith the particular m.les apolicable to such divisions as follows:
Division 1 ,• . ,
CLOTHERS' LIWIlNiGS (OTHER THAN jilL COTTON)
Definition • ■
The products included in this Division are body and/or sleeve
linings (other than all cotton) for use bv manufacturers of men's and
boys' clothing, and also by book tailor and trimming establishments.
Trade Practices . '
1. Terras of sale shall not exceed net 60 E.O.M., exceot that
bills on and after the 25th of the month may be dated as of the 1st of
the following month. Anticvoaticn may be allowed at a, rate not to
exceed 6fo -^er annum. Sample pieces shipped on memorandum shall be billed
retroactively as of date of shipment.
Fnere, subsequent to date of sale, a credit situation Tjreviously
unknown to Heller, should render iiivoossible adherence to this Section,
these previsions may be relaxed upon a-oproval of a-oplication to Di-
visional Committee.
2. Deliveries. — All goods shall be sold P.O.B, finisher or
main office registered with the Textile Fabrics Association.
3. Uniform ContraGt, — The provisions of a sales note recommend-
ed by the Divisional Committee and the Administrative Committee, when
approved by the Code Authority and the Administrator, shall be used
and adhered to on all sales for future delivery.
4. The Divisional Conraittea ma,y make recomnendations: (l) For
the use by all m.embers of the Division of a system of cost accounting
at least as detailed and comolete as a standard system of cost acco\int-
ing adopted by the Divisional Committee. (2) For regulation of sale
below cost when and if same may be so determined, but nothing herein
contained shall limit the right to sell seconds, out-of-fashion, dis-
tress, and shopworn goods, when so billed.
Such recom;.:endations (niombers 1 and 2, supra) when anproved by
the Administrc.tive Com.nittee, the Code Authority, and the Administra*
tor, sha.ll have the same force and effect as the other provisions of
this Suorjlemental Code.
9721
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The above-mentioned recom-aendations must be ccmnujiicated by the
Divisional Committee to all members of said Division, .not less than
ten days prior to date of submission cf Divisional Committee's recom-
mendations to the Administrative Committee, or other superior agency. ..
5. BFo merchandise may be sold on consif^^ent; nor mav any method
of sellin,:^ he 'used v;hich has the effecj of s'^llin-?; on consignment or
memorandum. Sample pieces to manufacturers for inspection are exempt
from the ap-olication of this rule. The DivisionPvl Coraviittee shall
have the power to suspend the operation of the provisions of this Sec-
tion.2/
5. Ho stock protection or Tjrice guarantee shall be given.
7. Sales offices ahall not be open for the transaction of busi-
ness on Saturdays and Sundays.
Division 2 .
CORSET, BRASSIEP^E, AID ALLIED THADES FABRICS
■ , . Definition
The products included in this Division are those sold for use in
the ratjiufe.cture of corsets, girdle corsets, steiD-in corsets, brassieres,
bandecT.ux-brassieres, corsets, girdle corsets, or step-in corsets at-
tached to brassieres or bandeaux-brassieres and all similar body-sup-
porting gajrraents, and in the manuf c^ctiare and supol^/' cf accessories such
as shields, stripping, binding, tabs, hook-and-eve cloth, etc., cut
from converted cloths, entering into ox used with such finished -oro-
ducts.
Trade Practices.
1. Terms of sale shall not exceed 2y — 10 davs,60 extra; or Sfo
— 10 days, or 3*^ — C.O.D. No extra dating shall be allowed. Anti-
cipation shall "be at legal rate of interest. Past due payments shall
carry interest at legal rate from date of maturity.
2. Deliveries. — All goods shcvll be sold F.O.B. point of origin.
In the case of shipments from finished stock carried in New York City
the looint 01 origin is the bleachery, dye works, and/or finishing plant
at which the goods were -orocessed.
2/ A comria was substituted for the period at the end of this sentence
by an amendment approved December 27, 1934 and the following phrase
was added thereto:
"subject to the ap-orovf 1 of the Administrative
Committee, the Code Authority/ and the National
Industrial Reccverv Board. "
9721
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3» Uniform Contract. — The provisions of a sales note recciri'-aend-
ed bv the Divisional Committee and the Administrative Committee, when
approved h-'- the Code Authority and the Adiainistrator, shall be used
and adliered to on all sales for future delivery.
4. Sample Requirements. — 3ach sample cut in excess cf one-ha.lf
yard in length furnished customers shall be charged for at regule.r
sales priee of the fabric.
5. Ko merchandise may be sold on consignment, nor may any method
of sellrig be used which has the effect of selling on consignment or
memora-nduj'n. Ss.mTDle -oieces to marnxfacturers for insoection are exempt
from the aoplication of this rule. The Divisional Committee shall have
the oovrer to susriend the oeration of the lorovisicns of this Section. 3/
6. Ko stock protection or lorice guarantee shall be given.
7. Sales offices ahall not be open for the transaction of busi-
ness on Saturdays and S-undays .
8. With respect to goods made entirely from sjoithetic yarns or
goods made from synthetic yarns mixed only with silk and produced by
the seller's own manufacturing facilities, the applicable provision
of the Silk Textile Code with respect to terms of sale and delivery ma,y
be sixbstituted for the provisions of terms of sale and delivery for
this Division.
Division 3
ALL-COTTOK CLOTHING LnadGS
Definition
The products included in this Division are all-cotton clothing
linings for use by manufacturers of men's and boys' clothing, tailor
trimning hou.ses, and book tailor and trimming establishments.
Trade Practices
1. Terms of sale shall not exceed 2fo, 60 days, E.O.M. 3-o, 1^ days,
E.O.M. Goods shi-oped on or after the 25th of the month may be billed
as of the 1st of the following m.onth. Interest at the rate of 6-^ per
annum shall be charged on all acccu.nts DPst due. Sample pieces shipped
on meraorandurn shall be billed retroactivelv as of date of shipment.
2. Deliveries. — All goods shall be sold P.Q.S. mill, with the
exce'oticn of sales made from ooen stock at main office, shipping point,
or established main depository which may be made F.O.B. such main office,
ship-oing point, or established main depository, provided it is registered
3/ Same as foot-note No. 2.
9721
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with the Textile Fabrics Association. 4/ _
3. Uniform Contract. — The provisions of a sales note recommend-
ed by the Divisional Committee and the Administrative Committee, Fheh
apriroved by the Code Authority and the Administrator shall be used arid '
adhered to on all sales for future delivery. .
4. The Divisional Comraittee may make recommendations: (iV^or '
the use b^r all members of the Division of a system of cost accounting
at least as detailed and complete as Ci standard system of cost account-
ing adopted by the divisional Committee, and (2) for regulation of sales
below cost when and if same may be so determined. Such recommendations
when approved bj'- the Administrative Comiittee, the Code Authority, and
the Adjnini.strator, sha,ll have the same force and effecj^ as the other
provisions of this Supplem.ental Code'.
5. price Reporting. — - Within thirty days after a majority vote
of this Division, all members thereof shall file with the Textile .Fab-
rics Association a schedule of prices and terms covering the sale of
their standard numbers sold in the previous week; such schedule to spe-
cify orices un different items (classified according to quantity there-
of), as may have been voted upon hir the Division.
Such reports shall be "orer)ared in siiramary form and submitted in
this form, to each member of the Division in such a manner as not to di-
vulge the o-oerations of cJiv individual member. The Divisional Committee
shall have the -oower to susioend the ot)era,tion of the -orovisions of this
Section. All members of the Division shall be notified by telegraph if
the orovisions of this Section are so sus^oended.
6. llo merchandise may be sold on consignment, nor may any method
of selling be used which has the effect of selling on consignment or
memorandum. S^ample pieces to manufacturers for insoection are exempt
from the application of this rule. The Divisional Comnittee shall have
the power to suspend the operation of the -orovisions of this Section. 5/
7. Ho stock protection or orice guarantee shall be given.
8. Sales offices shall not be ooen for the transaction of busi-
ness on Saturda-"-s and Sundays.
4/ This section was deleted bv an aijiendment approved December 27, 1934
and the following was substituted therefor:
"2. Deliveries.— All goods shall be sold f.o.b. mill or main
warehouse, -orovided the location of such main warehouse shall
be registered with the Textile Fabrics Association, and provi-
ded further that goods may be delivered ''dthout charge to the
first comjion carrier ( trans-oortaticn agency"^ or to customer if
locE.ted within the city limits of registered main warehouse."
5/ Saipe as foot-note Ho. 2.
9721
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Division 4
CUSTAIN MD DRAPERY F13RICS
Definition
The products incladed in this Division are converted cotton and
cotton mixture ciirtain and draoery fabrics, including these same fab-
rics v/hen sold to other cutting trades and/or wholesale, retail, chain
stores, and/or mail-order distrihutors; hut exclusive in all cases of
cloth 4iir.nufactured on hobbinette or lace raa.chines.
Trade Practices
1. Terms of sale to the manufacturing, chain-store, mail-order,
and retailers trade shall not exceed 2fo, 10 days, 60 extra, or Zfo, 10
days; no extra dating. G-oods shipiDed on and after the 25th of the month
may be billed as of the first of the follov-ing month. Terms of Sale
to jobbers shall not exceed 2'i, 10 days, 60 extra, or Zfo, 10 days; June
deliveries may be billed 2fo, 10 days October 1st; December deliveries
may be billed 2^, 10 days Aoril 1st.
2. Deliveries. — All goods sold to wholesalers, jobbers, chain
stores, nail-order houses, and manufacturers shall be sold F.O.B, mill.
All goods sold to retailers shall be sold P.O.B, mill cr main warehouse,
provided the location of such main warehouse shall be registered with
the Textile Fabrics Association.
3. Sample Requirements. — Any form of sample reouirement may be)
supplied free onlv to wholesalers and net to exceed 2'^o of the original
order. All other sam-ole requirements shall be charged for at full cost,
calculating fabric at sales orice, and shall include delivery charge;
provided that it is -permissible to furnish one set Of reference sanples
without charge to each district office of chain-store organizations
where such district offices exist, or one set to the main office of
any chain organization not having district offices. Only one swatch
less than 1 ;• yards in length of a.ny one style shall be given free to
one customer. All swatches above l-'s yards shall be paid for at sales
price cf the fabric,
4. Advertising Allowances. — No advertising allowances are permit-
ted.
5. Ko merchandise may be sold on consignment, nor may any method
of selling be used which has the effect of selling on consignment or
memorandurn. Sample pieces to manufacturers for insioection are exempt
from the cvoplication of this rule. The Divisional Committee shall have
the oower to susiosnd the operation of the provisions of this Section. 5/
6. Ho stock protection or price guarantee shall be given.
7. Sales offices shall not be open for the transaction of
6/ Same as foot-note No. 2.
9721
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business on Saturdciys and Sunda^^s . 7/
Division 5
SHIHTINGS
Definition
The -products included in this Division are shirting fabrics for
use by manufa^cturers of shirts, pajamas, uaden7ear, boys' blouses, and
similar v-earing apparel, including these sane fabrics vhen sold to
other cuttiig tredes and/or virholesale, retail, and/or me.il-crder dis-
tributors.
Trade Practices
r. Terns of Sale shall not exceed 2'1>, 10 days, 60 extra, or 2ifh,
10 days, 30 extra, or 3*o C.O.D., or 3'^:, 10 de;-/-s, effective from date
of invoice or shroment, whichever is earlier, no extra dating.
Interest shall be charged at 6-v on all oast due accounts, such
charge starting at maturity period.
Anticroation mav be allov7ed at a rate not to exceed 6^ Der annum.
'2. Deliveries. — All goods ' shall be sold F.O.S. point of origin.
3. Sanrple RenuireTients . — All sanole reouireraents including
samxile cuts shall be charged to customer at full cost; fabric to be fi-
gured at sables "orice. Reference sets not tc-exceed three (3") in num-
ber mo.y be furnished fr3e; size of sv/atches not to exceed 2 x 4" and
not to be mounted on custodier's ca.rds; all reference sets to be plain-
ly marked "Ji'or Reference Only. "
4. Advertising Allowances. — Fabric demonstration, or allowance
therefor, or advertising allowances in anv form v/hatsoever, are oro-
hibited.
5. Options. - Ho options shall be given.
6. Sale of Goods by Construction. — When finished goods are
sold on ha.sis of grey construction, grey width, count and weightVshall
be shown on confirmation of order and invoice.
7. ilo merchandise nay be sold on coisij^nnent, nor ma^'^ an^/ rae- '
thod of selling be used wnicn has the effect of selling on consign-
ment or memorandum. Samole pieces to nanuia^cturers for inspection
are exem-?t from arolication of this rule. The Divisiona.l Conr^ittee
shall have the povfer to suspend the ooere-ticn of the provisions of
7/ The following new Section 8 via.s added b-"- an amendiient 3.oproved
Decei.iber 27, 1934.
"8. OiTtions. — Ho oiptions shall be given."
9721.
-71-
this SectiL'n. 8_/
8. STc stock protection or orice guarantee shall be given.
9. Sales offices shall not be open for the transaction of busi-
ness on Satiir clays and Sunda.ys .
10. ffith res"oect to goods made entirely froin synthetic varns or
goods inr.de from synthetic yarns mixed only with silk and 'oroduced by
the seller's cv:n manufacturing facilities, the 8,-pr)licable -orovisions
of the Sill: Textile Code with respect to terms of sale and delivery
may be substituted for the provisions of terms of sale and delivery
for this Division.
Division 6
V/ASH &OODS ■ ■ ■
Definition
The oroducts included in this Division are wash goods for use by
manufacturers of men's, women's, a.nd children's aoparel including these
same fabrics when sold to other cutting trades and/or wholesale, re-
tail, and/or ..lail order distributors.
Trade practices.
1. Terms of Sale shall not exceed 2^0, 10 days, 60 extra, or 2is'fo,
10 days, 30 extra, or o^S C.O.D., or 3fo, 10 davs, effective from date
of invoice or shipment, whiehever is earlier; no extra dating to be
alloT/ed. Interest shall be charged at 6fo on all past due accounts, such
charge starting at mcuturity of bill. Anticipation raa;'" be allowed at a
rate not to exceed 6fo per annum.
2. Deliveries. — All goods shall be sold P.O.B. point of origin,
with the exception of goods sold to retailers and chain stores which
shall be sold P.O.B. plant or main warehouse registered with the Tex-'
tile Ea Oleics Association.
3. SciTole Requirements. — All samole requirements furnished
Jobbers, catalog houses, ch;- in stores and manufacturers, shall be
charged at full clost, calcul8,ting fabric furnished at sales price. Re-
ference sets not to exceed three in number to any one customer may be
furnished free of charge on reouest.
4. Advertising Allowances. — Fabric demonstre.tion, or allowances
therefor, or advertising allowances in anv form, shall be lorchibited.
5. O'otions. - Ho ontions shall be given.
6. ITc ::i8rchpmdise may be sold on consignment, nor may any method
Sa;:e 8,s foot-note ¥.0. 2
9721
-?2-
of selling "be used v/hich has the effect of sellin.9; on consigrjnent or
memo rcjiiduja . Sample -Diecss to mrnufacturers for insoection are exerirot
from the a-o":)li cation of this rule. The Divisional Con-dttae shall ha.ve
the ■QOT.'er to sus-oend the cpeiation of the provisions of this Section. 9/
7. ITo stock nrotecticn or orice ;p?.i'rantee shall be 2:iven.
8. Sales offices shall not be o--<en for the transaction of busi-
ness on Ss.turdays and Sundays.
9. With resoect to goods made entirely from synthetic yarns or
goods ma.de from synthetic yarns mixed only with silk and -orcduced hy
the seller's own manufacturing facilities, the aoplicable oroyisions
of the Silk Textile Code with resoect to terms of sale and delivery ma3'-
be substituted for the -orovisions of terms of sale and delivery for this
Division.
Division 7
IjiTEZLI/ING-S
Definition
The oroducts included in this Division are fabrics made from tohac—
CO cloths, -Drint cloths, sheetings, twills, drills, osnaburgs, and
ducks, "but only where these finished fabrics are used for interlining
purposes for garments.
Trade practices
1. Terms of sale shall not exceed 2^, 10 da-^'-s, 60 extra, or Zfo,
10 days, or Zfo C.O.D., effective from da-te of invoice or shioT)ing memo-
randum, whichever is the earlier. Ivc extra dating shall be allowed.
Anticipation shall be at the le;-.:al ra.te cf interest. Past due r)a3nnents
shall carry interest at the lec3:a.l rate fron date of maturity.
2. Deliveries. — All goods shall be sold P.O.B. point of origin.
In the case of shipments fror. finished stcc" carried in New York City,
the "ooint of origin is the bleachery, dye works, and/or finishing plant
at which the goods were processed.
3. iTo merchandise may be sold on consignment, nor may Hn.y method
of selling be used which has the effect of selling on consignment or
memorandum. Sam'ole -oieces to manufacturers for ins'oection are exerirot
from the a-Q-olication of this rule. The Divisional Committee shall have
the power to suspend the oioeration of the orovisions of this Section. 10/
4. ITo stock protection or price guarantee shall be given.
9/ SaJTie as foot-note No. 2.
10/ Sajne as foot-note No. 2.
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5. Sales offices shall not be ooen for the t:f,nsacti on of business
on. Sat^orda-'^s and Sundays.
VI. Adiainistration. - ]?or the ijurcose of the general administra-
tion of the divisions enumerated in Article III, there shall be con-
stittited b" the Code Authority an A&viinistrative Cominittee which shall
have such di.-ities and -oovers as the Code Authority niav delegate.
Tnere shall be established by th? Administrative Comnittee a Di-
visional Ccmiittee in each of such divisions with such duties and po-
wers in each case as the Administrative CoE;iittee may delegate.
The Adi:iinistrator shall have the right to apuoint not more than
three members, without vote, to the Adi^iinistrative Comnittee and the
Divisional Committees who shall serve vvithout expense to the Industry.
If the AcLninistrator shall detei-mine that any action of the Ad-
ministrative Comnittee or a Divisional Committee or any agency there-
of is unfair or unjust or contrary to the oublic interest, the Adminis-
trator may reo^uire that such action be suspended for a neriod of not
to exceed thirty (30) days to afford an ooportunity for investigation
of the Merits of such action and further consideration by such Adminis-
tra.tive Com:.iittee or Divisional Committee or agency oending a final
action, which shall be takien onl'r upon apr)rovci.l by the Administrator.
VII. The provisions for trade "oractices prescribed in Article IV
and V hereof o.re suTaject to such changes, m.odif ice.tions, and additions
as maj;- he recommended to the Code Authoritj!- oy the Administrative Com.-
mittee and a-:oroved by the Administrator, but no change affecting a
division sufll be submitted for the ap-^roval of the Adrainistrator with-
out the ap-:iroval of the Divisional Committee of the Division e^ffected.
VIII. The Code Authority ma;'' from time to time establish such a,d—
ditiv:nal divisions deeding with other activities of this branch of the
Industr-i- as ma-^ seem desirable and, subject to the a-oproval of the Ad-
ministr-~,tor, may pro^-ide for the formulation of stich trade 'ora.ctices
ar)X)lics-ble to such additional divisions and for their administration
in su^^h mci^iner as may seem desirable.
IX. liemhers of the Industry aoprove of the -oolicy of arbitrating
all disor.teG wherewer possiiile and the Administrative Committee is here-
by desi^^icted the agency to assist in bri iging about such arbitration
as to any matters arising in the Divisions enumerated in Article III.
X. This SuoDlemontal Code and ;all the orovisi'-^ns thereof are ex-
pressly made subject to the right of the President, in accordance with
the orcvisi.ns of subsection (b'i of Section 10 of the National Ind\3,3t-
rial Recovery Act, from time to time to cs.ncel or modify any order, ap-
proval, license, rule, or regulation issued under Title I if said Act,
and s-oecif ically, but without limitation, to the right of the Presi-
dent to ca;ncel or modify his approval of this supplemental code or any
conditions imoc&ed by him upon his approval thereofl
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SI. This Sup-'lenental Code shall becone effective on the second
Moudc;/ ai'tei' its a'Torcval b-^' the Presidant of the Unitad States.
Tlie follo'jinf divisi^'ns were 8.dded by an ajiend'aent aooroved
December S7, 1^34.
Division 8
BLEACHED GOODS
Definition
The or ^- ducts included in this Division are those cloths commonly
known as bleached goods, consisting of TJainscoks, Long Cloths, Mus-
lins aiid Ca;abrics, finished from orint cloth or other constructions,
in carded or cosibed varns, and Fajara._ Checks, Lingerie Cloths, Handl'Cer-
chief Cloths and Underwear Fabrics, in white or tint finishes, sold to
cutters, whole sa.lers, chain stores, retailers, catalogue and/or mail
order houses .
Trade Practices
1. Ter;,is of Sale shall not exceed 2l - 1*^ days, 6'"' extra, or 2^'fo
- 10 days, 30 extra; or 3;^ C.O.D., or Zfo - 10 d3vs, effective from date
of invoice or shij^^ent, Fhiche"'."er is earlier; no extra dating to be
allo'jed. Interest snail be chr.r^od at the rate of Gfo 'oer annum on all
past due a.c.cuiits, such charge starting a.t maturity of bill. Antici-
pation may be allo^/ed at a rate not to exceed 6*5 rer annum.
2. Deliveries. ■ - All goods shall be sold f.o.b. citv of icrigin,
with the exceoticn of gocas sold to retailers (not including chain
stores) which shall be sold f.o.b. city of origin or main v.'arehouse
registered v.'ith the Textile fabrics Association, p.nd provided further
that goods sold to rotailers (not including chain stores') may be de-
livered without charge to the first co-rion carrier ( transrjortation
agenc:.') or to store, if such store be located within the city limits of
registered main warehouse.
3. In the case of shiovaents from finished stock carried in
New York City, ths city of origin is the bleachery, dye works, and/or
finishing ilant at which the goods were orocessed.
4. Advertising A.llov!?ances. - Fabric demonstration, or allowances
therefor, or advertising allov/ances in any fox-m shall be prohibited.
5. Q-iotions. - llo ootions shall be given.
6. Consignments. - No merchandise may be sold on consignment, nor
may any metnod of selliig be used which nas the effect of selling on
consignment or men^randum. Samole r)iec6S to naniofacturers for inspec'^'
tion are exeiiot from the aoplication of this rule. The Divisional Com-
mittee shall have the oower to suspend the operation of the orovisions
of this Section, subject to the aoDroval of the Administrative Committee,
the Code Authority and the National Industrial Recovery Board.
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7. Ho Sbock Torotecticn or price guarantee shall be ^iven.
8. Saturday Closing. - Sales offices shall not be ooen for the
traiisaction of business on Saturdays and Sundays.
Division 9
COTTOK LIWn;GS FOR ALL rUHI-OSES liOT OTH.EPJISE FROVIDED
Def iiiiiition
The -oroducts included in this Division are cotton linings sold for
use for rll -our-ooses not otherwise provided for in this SuoDlementarv
Code, i:icluding those sold for use in the manufact\ire of Dresses, Hats,
Caps, Drcoeries, Purnitiire, Pocket-books, Neckwear, Millinery, Bias
Bindings, Coafortables and Luggage, including those sanern fabrics when
sold to other cutting trades and/or wholesalers, retailers, chain stores
and/or mail order distributors.
Trade Practices
1. Terus of sale shall not exceed 2f^ - 10 days, 60 extra, or 2^rfo—
10 days, 3.) extra, or 3fo - 10 a.ays or Zfo - C.O.D., effective from date
of invoice or shipment, whichever is earlier; no extra dating shall be
allowed. Anticipe.tion shall be charged at legal rate of interest. Past
due 'oaynents sha.ll ca,rry interest at le.-:al rate from date of maturity.
2. Deliveries. - All goods shall be sold f.o.b. city of origin,
with the excevDtion of goods sold to reta.ilers (not including chain
stores) which shall be sold f.o.b. city of origin or amin warehouse re-
gistered with the Textile Fabrics Association, and orovided further that
goods sold to retailers (not including chain stores") may be delivered
without chaige to the firs+" comjr.on carrier (transportation agency) or
to store, if such store be located within the citj limits of registered
main warehouse.
3. In the case of shioaents from finished stock carried in New
York City, the city of orifj;in is the bleechery, dye works, and/or fin-
ishing plant at which the goods were processed.
4. Saj'iiple Requirements. - All Scunple requirements furnished job-
bers, catalog houses, chain stores and manufacturers, shall be charged
at full cost, calculating fabric furnished at sales price. Reference
sets not to exceed three in number to any one customer may be furnished
free of charge on request.
5. Advertising Allowances. - Fabric dem.onstration or allowances
therefor or advertising e.llowances in any form whatsoever are prohibi-
ted.
6. Options. - Ko options shall be given.
7. Uniform Sales Contract. - A form of sales note recommended
by the Divisioneil Comj.iittee and the Administrative Committee and ap-oroved
►-75-
by the Cod.e Authority and the National Industrial Recovery Board
shall be used and adliered to on all sales fcr futiire delivery.
8, Contracts for futiire delivery shrll not be taken for a period
exceeding five (5) months from date of original order. In cases
where enf orcei;;ent of this provision in the ooinion of any member Trrill
:^ work a hardshio on any custoiaer, a fvirther extension of thirty (30)
.J days raa.;r he granted on a y^lication, e.nd aftor ap-oroval by the Division-
al Coir lit tee.
9. ilo stock ^orotecticn or price guarantee shedl be given.
1). No ;nerchajidise may be sold on consigaiient, nor may any method
of selling be used which has the effect of selling on consigmnent or
Memore-nd-ujn. SamiDle -oieces to manufacturers for inspection are exempt
froj! the aoplication of this rule. The Divisional Connittee shall have
the pc"^er to sus"oend the operation of the "orovisions of this Section,
subject to the approval of the Administrative Committee, the Code Au-
thority and the national Industrial Hecovery Board.
11. Sales offices snail not be o-^ea for the transaction of bu-
siness on Se.turdays and Sunda-^s.
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APPSNDIX III
Fair Trade Pragtices Qoverning the Merchandising of the Products
of the Cotton 'Thread Manufacturing Branch.
As Approved on July 17, 1934.
1. National Industrie,! Recovery Act. — 3]ach rnemher of the In-
dustry who is entitled to display the Blue Sagle of the Hational Re-
covery Administration shall affix to all invoices, in accordance ^vith
regulations of the' Code Authority, l/ a stanio stating that the mill
whore the goods T/e re made is operating under the Cotton Textile Code,
which regulations and stamp shall he suhjoct to the approval of the
Administrator.
2. Definitions. — The following definitions sh^.ll apply to this
Code of Fair Tra-de Practices hereinafter set forth.
(a) The term "industry" means the cotton thread manufacturing
branch of the Cotton Textile Industry, which is defined as, the manu-
facture of seYifing, crocheting, emhrcidery, and/or darning cotton r , ..
thread. " '" , . . .
(Td) Whenever the terra "thread" or "threads" is used, it shall
refer to cotton thread, which, is defined to include 3.11 products com-
posed of one or more Cotton yarns, single or hraided or twisted to-
gether, and sold for use in any sewing, crocheting, embroidery, or
darning operations, in the natural, white or colored state, with the
excepticn of:
(1) Cotton articles usually defined in. the trade as "tv/inc",
"sewing tv/ine", "bag twine", "bag closing twine", "broom twine", and
"tufting twine", which are mad.e of carded yarns of a yarn count of 20s
or coarser. ' ■ '
(2) Cotton looping and seaming yarns used in the hosiery trade.
For the pLirposes of this Code of Fair Trade Practices certain cotton
yarns, commonly a.nd variously known as "schiffli", "schiffli yarn" and
"embroidery yarns", as made and sold for use only on Schiffli and Swiss
hand embroidery machines shall be considered, as coming within the fore-
going definition of thread.
(c) The term "manufactLirers ' threads" refers to those threads
generally used in the manufacturing or industrial trades, and the term
"household threads" refers to those threads generally used in the home
or for domestic purposes.
1/ Adjuinistrative Order 1-93 of November 30, 1S34 approved regulations
relating to the stamping of invoices as submitted by the Code Auth-
ority.
9721
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(d) The term "Sub-ComrnitteG on Tliread" shall mean the Sub-
Cominittcc on Thread of the Code Authority of the Cotton Textile In-
dustry.
(e) Unless otherwise specified, all provisions of this Code of
Fair Trade Practices sh?.ll apply octh to manufacturers' or industrial
threads and household or domestic threads.
3. Publishing Prices and Terms of Sale. — (a) Slach member of the
industry shall fxirnish to and file with the- Thread Institute copies of
price lists shov/ing all current prices and quantity discounts to all
classes of trade on "branded goods. This information shall "be kept \ .
up to date in the future "by furnishing The Thread Institute with all
changes in prices and quantity discounts on "branded goods on the same
day on which they go into effect. All such information filed with the
Thread Institute shall ~oo availa'ble to all members of the Industry.
(b) j]ach member of the Industry shall have the right individually
to file new prices from time to time not inconsistent with the provi-
sions of tne Cotton Textile Code as amended or this Code cf Fair Trade
Practices.
(c) Members of the Industry shall rojart to the Cotton-Textile
Institute ever^^ four weeks, the total cf all sales of nonbrandcd goods
made by them during said four weeks' period. The units in which such
sales shall be reported, the detail of said reports, and the disposi-
tion of same, shall be as designated from time to. time by the Sub-Com-
mit toe on Thread.
(d) The Sub-Committee on Thread sliall liave power to establish
rules and regulations for the ordering administration of tlie provisions
of t'nis Section 3. Such i-alcs and regu.lations shall be subject to re-
view by the Cotton Textile Industry Committee.
4. Selling 3elov.' Cost. — (a) The selli3:ig of goods by any member
of tne Industrj' belov cost of production is an unfair trade practice
except vfhere the sale is made to meet bona fide coiirnetition.
(b) The provisions of paragraph 4 (a) shall not become effective
until the definition of cost of production and a method of uniform cost
accounting have been approved by the Administrator, and such further
period thereafter, not less tiian t"nrce months, as may be fixed by the
Sub-Committee on Thread with the approval of the Cotton Textile Industry
Committee and of the Administrator.
(c) Nothing herein contained shall prevent the sale of damaged
goods, job lots, and discontinued lines below cost of production, pro-
vided, such merchandise is clearly invoiced as such, and that a com-
plete record thereof is kept by the seller, open to inspection by The
Thread Institute or its authoris.ed agents.
(d) The Thread Institxito, through a disinterested agency appointed
by its Board of Directors, is designated as an s.gency to gather all nec-
essary information as to a method of -uniform cost accounting. Such
9721
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agency shall report the results of such investigation to the said Board
in statistical form, and said Board is designated as an agency to deter-
mine the appropriate method for ujiiform cost accounting, and to recommend
such method and a definition of cost of production through the Suh-Com-
mittee on Thread for the action of the Cotton Textile Indus try/,Cor;irrdt too and
recommendation to the Administrator, Such recommendation, after such
notice and hearing as the Administrator may specify, shall hccome ef-
fective subject to the provisions of paragraph 4 (h) on approval hy the
Administrator or the President.
5. Ci'edit Terms. -^- (a) 3:icept either as otherwise provided in
paragraph (b) of this section, or under emergency conditions found to
exist in any particular ca-se, no more favorable credit terms shall he
extended "by any member of the Indiistry, in .connection vdth any sale or
transactions completed within the continental limits of the United
States than the following;
Net 60 dayp.
270 10 days E. 0. M. (3nd of Month).
(b) The provisions of paragraph 5 (a) shall not apply to sales
of thread for use on Schiffli and Swiss hand embroidery machines, on
which sales no more favorable ternis shall be extended than —
Net 60 days. . ■
2^,0 30 days.,
S/a 10 days
(c) No extra dating shall be allowed, except that goods shipped
from the 35th to the end of the month may be regarded for discount
purposes as having been shipped as of the 1st of the following month,
and except also that an additional dating of thirty days on the in-
voice may be allov;ed for discou:at purposes on shipments from points
east of the Mississippi Eivsr to points west of tne longitude of
Denver, Colorado.
(d) No shipment shall be m.ade on consignmont to any person, firm
or corporation other tha,n to a bona fide S3,les agent.
6. Secret Rebates. — (a) The payment or allowance of secret re-
bates, ref-onds, or unearned discounts, whether in the form of money
or otherwise, resulting in discriminations between customers of the
same class, is an unfair trade practice.
(b) Nothing in this paragraph shall preclude the payment of a
reasonable commission to any .jobber for bona fide services in dis-
tribution of goods.
7. Mutuality of Contracts. — (a) All contracts not for immedia,te
delivery made by members of tne Industry for the sale of their products
9721
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shall l3e in w.-iting for definite quantities, and duly executed "by the
respective parties thereto. Forms for such contracts shall "be filed
with The Thread In.stitute as soon as effective and shall "be availa'ble
to all monibers.
("b) All contracts for rrjanufacturcrs ' threads shall stipulate
tiat the delivery specifications calling for the shipments against the
contracts shall 'oe distri""Duted fairly and equita"bly throughout the
term of said contract.
(c) All contracts should "be performed according to their terais
"by all the parties thereto, in the absence of a legal or equita'ble
excuse for nonperformance. The vdllful failure of a mem"ber of the In-
dustry to enforce the same is an unfair trade practice, rlothing herein
contained shall prevent the use of usual clauses in contracts as to
the effect of force majeure, acts of G-od, and similar events heyonji the
control of either party.
(d) Predating an order or contract v/ith the intent or effect of
giving either "buyer or seller any advanta<^,e cr "benefit vdiich would not
accrue if such order or contract were correctly dated, is an unfair
trade practice.
. (e) "Ma>e and hold" orders for manufactui-rers ' threads shall only
"be accepted as contracts. Under such contracts the terms must provide
that the "buyer must accept delivery of the frdl quantity specified with-
in the contract period,
(f) Wilfully inducing or attemoting to induce the "breach of
any contract "between a conpetitor and his customer or wilfully inter-
fering witlx or o"bstructing the performance of the same is an unfair
trade practice,
(g) Contracts for manufacturers' threads not for immediate de-
livery shall "be for periods not to exceed three months,
8. Samples, — V/hereas, the giving of free samples to cijstomers for
the purpose of o"btaining "business is not in itself a trade a"buse, it is
an unfair trade practice if samolos are given as an integral part of a
sale or as a means of making a specific sale, 3/
2/ The a"bove section was deleted "by amendment approved i/arch 2, 1935
and the following was su"bstitutod therefor:
"8, Samples — Whereas, the giving of free trial samples of
cotton thread to cu.stomers or prospective customers of
mem"bers of the Industry for the purpose of o"btaining bus-
iness is not in itself a trade a"buse, it is an unfair trade
practice if any quantity of cotton thread other than trial
samples is given "by a mem"ber 01 the Industr;^ as an integral
part of a sale or as a means of imlcing any specific sale. Any
of the aforesaid free trial samples shall "be marked as required
by the provisions of Section 12 hei-eof . "
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S. Advei-tiaing Allov/ance. - IIo advertising shall Lie offered or
given to induce or consw.irnate a sale. This paragraii shall not te con-
strued so as to prevent ;?ro-:?r e:coendit-ures or allov/ances for advertis-
ing or displays actually made or furnished.
10. Groiip Buiying. - No rnemoer of the Industry shpll accept orders
or contracts from any person, firm, conoora.tion, or association v/ho has
combined to pool orders or pu.rchase3 of se'-'ing threads for the puiriose of
obtaining the benefit oi any discount or other concession allowed on the
Quantity purchased or agreed to be nvLrcha-sed unless the person, firm,
corporation, or association in whose name the sale or contract shall
"be made actually establishes a sound fihaaicial basis for any credit in-
volved and assumes sole financia-1 responsibility. The failure of any
member oi the Industry to conform to the reciuireraents of this paragraph
shall be an unfair trade practice.
11. False and Misleading Advertising. - The making or causing
or permitting to be made or published any false or deceptive statement
by way of advertisement (whether printed, radio, display, or of any
other nature) or otherwise concerning the grade, quality, Quantity,
substance, character, nature, orgin, sise, or preparation of any product
of the Industi-y vwiich is misleading or inaccurate in any material
particular or vhich may mislead or deceive purchasers or prospective
purchasers, or which may injuriously a.ffect the business of comTjetitors,
is an unfair trade practice. " ■ "
12. Max-king Thread. - (a) Uo member of the Industry, shall sell
or offer for sale any thread, put un on sioools, tubes, cones, bobbins,
or in balls, skeins, or other similar packages, "'onless there is affixed
to or impressed Wjon a conspicous part of each such spool, tube, cone,
bobbin, ball, skein, or other similar package of such thread a label or
stamp shich shall be "ola.in ajid. cons-oicous, and vhich shall plainly
indicate either its net weight in avoirdupois poujids and ounces or its
length in yards; Provided, that when any such spool, tube, cone, bobbin,
ball, skein, or other similar package of such thread containing a net
weight of less thaJL two a.voirdupois ounces is sold or offered for sale,
then such label or stamp sha,ll indica.te its length in yards; provided
further. That where from the shape, size or character of the spool,
tube, cone7 bobbin, ,b,'..ll, skein, -^r other simik-'ir rackage it. is impo-ssible
so to affix or impress such label or stamp, a label or stamp shall be
affixed to the box or other contained in which- such packages a.re put up,
stating the number of units contained therein and the net weight of yard-
age of each, as hereinbefore prescJCibed.
(b) It shall be an unfair trad.e practice if ajiy member of the
industry shall sell or offer for sale such thread on any spool, tube,
cone, bobbin, or in any such ball, skein or other similar package or
box, without a label or stacip specifying the net weight or number of
yards of thread contained thex*eon, as provided in the first paragraph of
this section, or if any such member of the industry shall seil or offer
for sale such thread on any such spool, tube, cone, bobbin, or in any
such ball, skein, or other similar package or box, weighing or measuring
more than five per cent, leas s or more" than the net ?;eight or number of
yards that the label or sttjinp thereon sriecifies.
9721
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Eacli member of the incVastry sli.-ll file v/itii Tlie Thread I-stituts
a list of all "brands and traie nia.rhs used on cotton threads liroduced
"by or for him for his oy/n distri"bution and sale, and also shall keep
jl5i.e Thread IjiiStitute informed .Vf. all changes suid additions.
It shall he an Vinfair trade practice if any memher of the industry
shall sell or offer for sale cjcij thread v/hich, in addition to heing
labeled or stam-^^oed vdth a sto.tenent of contents as provided in the
first paragraph of this section, does not bear a firm name, brand, or
trade mark by vjhich it may be clearly identified by *Ihe Thread Institute.
Ti^e provisions of the foregoing paragraphs of this section shall
not apply to thread sold for use on Schifili and Swiss hand embroidery
machines.
13. Misbranding and Mislabeling - The false marking or false
branding of -products v/ith the effect of misleading or deceiving pur-
chasers with respects co the cuantity, ouality, gra.de, or substance
of the Toroducts "purchased is an unfair trade practice.
14. ?alse Invoicing. - Withliolding from or inserting in the in-
voice statements which malce the invoice a false record wholly or in part,
of the transaction represented on the face thereof, is an unfair trade
practice.
15. Commercial Bribery. - ITo 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 aoaother in relation to the b^isiness of the
employers of such em;-?loyee, the principal of such agent or the repre-
sented party. T"ais provision shall not be constru.ed to prohibit free
and general distribution oi articles com'ionly used for advertising
er.cept so far as such articles are actually used for comra-rcial brib'^ry
as hereinabove defined.
16. St^bs-Stitution of Merchandise. - (a) Shipping or delivering
products which do not conform to the saimles sub/nit ted, or re'oresen-
tations made prior to securing an order an.d v;ith the effect of de-
ceiving or misleading the purchaser, is an unfair trade practice.
(b) The sa.le of s,n inferior r.uality of product in this indiistry
at a price approori-te for such product, with the understanding that a
prodLict of superior nuality selling at a, hi -her 'orice will be de-
livered, is an "-LUifair trade practice. A seller acting in good faith
and because of an actual unforeseen shortage of the product sold, may,
in order to service the customer, deliver a -oroduct of quality
superior to the product sold.
17. Imitation of Trade Marks, etc. - Tlie imitation or simulation
by a member of the -Fnaustry, of another's trade marks, trade names,
slogans, and other marks of identifico.tion, including labels and the
dress of the goods, so as to deceive purchasers or prospective pur-
chasers, or result in commercial disadvantage to the owner of an al-
ready established put-up is an unfair trade Toractice.
9721
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18. False Disparagement of Competitors. - The defamation of com-
petitors by falsely imputing to them dishonorable cond-act, inability to
perform contracts , questionable credit standing, or other false representa-
tions, or the false disparagement of the grade or quality of their goods,
is an unfair trade practice.
19. Use of Competitor's Merchandise. - No member of the industry,
shall by purchase or exchange acquire another manufacturer's merchandise
from any customer or prospective customer for the purpose of substituting
his ovm merchandise or influencing the sale of merchandise to such customer
or prospective customer, Provided however, it shall not be an unfair trade
practice to acquire a sample of a competitor's merchandise for the purpose
of comparison or anfj.ysis.
20. Aiding or Abetting Another in the Use of Unfair Trade Practice. -
The wilful aiding or abetting of another in the use of unfair trade
practices is an unfair trade practice.
21. Modification. - (a) The Board of Directors of 3/ the Sub-
Committee on Thread shall give consideration to any proposed change or
changes in this Code of Pair Trade Practices which may be proposed to it 4/
either by any member or members of the Thread Institute having collectively
not less than twenty-five votes therein, provided, however, that where
such proposed change or changes would affect manufacturers supplying
thread for use on Schiffli and Swiss hand embroidery machines, such change
or changes may be proposed by any member or members of The Thread Institute
whose principal business is supplying such thread, having collectively not
less than five votes therein.
(b) The provisions of this Code of Fair Trade Practices shall govern
all members of the Industry. Any provision of this Code of Fair Trade
Practices may be revoked or modified by the Board of Directors of the Sub-
Committee on Thread, subject to the approval of the Cotton Textile Industry
Comm.ittee and the Administrator. This Code of Fair Trade Practices is
subject to the right of the President, in accordance with subsection (b)
of Section 10 of the Ivational Industrial Hecovery Act from time to time
to cancel or modify any order, approval, rule or regulation issued under
said act.
3/ "of" was changed to "or" by an amendment approved September 11, 1934.
4/ " it"-.evidently a tj^pographical error - was removed by an amendment
September 11, 1934.
9721
-34-
22. Nothing in this Code of jair Trade Practices shall he deemed
to constitute any of the memhers of the Industry partners for any pur-
pose. No rnemDer shall he liahle in ajiy manner to anyone for any act of
any mcmtor or agent of the Code Authority lawfully and properly per-
formed pursuant to the provisions of this Code of Pair Trnde Practices,
nor shall memher or e.gent he liahle to anyone or in any manner other
than as provided in the llational Industrial Secovei-y Act or in the G-otton
Textile Code or this Code of Fair Trade Pra,ctices for any act performed
in accordance with, or for any failure to act required oy, the provisions
of said Code and Code of pair Trade Practices.
9721#
OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION
THE DIVISION OF REVIEW
THE WORK OF THE DIVISION OF REVIEW
Executive Order No. 7075, dated June 15, 1935, established the Division of Review of the
National Recovery Administration. The pertinent part of the Executive Order reads thus:
The Division of Review shall assemble, analyze, and report upon the statistical
information and records of experience of the operations of the various trades and
industries heretofore subject to codes of fair competition, shall study the ef-
fects of such codes upon trade, industrial and labor conditions in general, and
ot.ier related matters, shall make available for the protection and promotioi of
the public interest an adequate review of the effects of the Administration of
Title I of the National Industrial Recovery Act, and tne principles and policies
put into effect thereunder, and shall otherwise aid the President in carrying out
nis functions under the said Title.
The study sections set up in the Division of Review covered these areas: industry
studies, foreign trade studies, labor studies, trade practice studies, statistical studies,
legal studies, administration studies, miscellaneous studies, and the writing of code his-
tories. The materials which were produced by these secti;ns are indicated below.
Except for the Code Histories, all items mentioned below are scheduled to be in mimeo-
graphed form by April 1, 1936,
THE CODE HISTORIES
The Code Histories are documented accounts of the formation and administration of the
codes. They contain the definition of the industry and the principal products thereof: the
classes of members in the industry; the history of code formation including an account of the
sponsoring organizations, the conferences, negotiations and hearings which were neld, and
the activities in connection with obtaining approval of the code; the history of the ad-
ministration of the code, covering the organization and operation of the code authority,
the difficulties encountered in administration, the extent of compliance or non-compliance,
and the general success or lack of success of the code; and an analysis of the operation of
code provisions dealing with wages, hours, trade practices, and other provisions. These
and other matters are canvassed not only in terms of the materials to be found in the files,
but also in terms of the experiences of the deputies and others concerned with code formation
and administration.
The Code Histories, (including histories of certain NRA units or agencies) are not
mimeographed. They are to be turned over to the Department of Commerce in typewritten form.
All told, approximately eight hundred and fifty (850) histories will be completed. This
number includes all of the approved codes and seme of the unapproved codes. (In Work Mate-
rials No 18, Contents of Code Histories, will be found the outline which governed the
preparation of Code Histories.)
(In the case of all approved codes and also in the case of some codes not carried to
final approval, there are in NRA files further materials on industries. Particularly worthy
of mention are the Volumes I, II and III which c nstitute the material officially submitted
to the President in support of the recommendation for approval of each code. These volumes
9675—1 .
OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION
THE DIVISION OF REVIEW
THE WORK OF THE DIVISION OF REVIEW
Executive Order No. 7075, dated June 15, 1935, established the Division of Review of the
National Recovery Administration. The pertinent part of the Executive Order reads thus:
The Division of Review shall assemble, analyze, and report upon the statistical
information and records of experience of the operations of the various trades and
industries heretofore subject to codes of fair competition, shall study the ef-
fects of such codes upon trade, industrial and labor conditions in general, and
ct.ier related matters, shall make available for the protection and promotioi of
the public interest an adequate review of the effects of the Administration of
Title I of the National Industrial Recovery Act, and tne principles and policies
put into effect thereunder, and shall otherwise aid the President in carrying out
nis functions under the said Title.
The study sections set up in the Division of Review covered these areas: industry
studies, foreign trade studies, labor studies, trade practice studies, statistical studies,
legal studies, administration studies, miscellaneous studies, and the writing of code his-
tories. The materials which were produced by these secti:ns are indicated below.
Except for the Code Histories, all items mentioned below are scheduled to be in mimeo-
graphed form by April 1, 1936.
THE CODE HISTORIES
The Code Histories are documented accounts of the formation and administration of the
codes. They contain the definition of the industry and the principal products thereof; the
classes of members in the industry; the history of code formation including an account of the
sponsoring organizations, the conferences, negotiations and hearings which were .leld, and
the activities in connection with obtaining approval of the code; the history of the ad-
ministration of the code, covering the organization and operation of the code authority,
the difficulties encountered in administration, the extent of compliance or non-compliance,
and the general success or lack of success of the code; and an analysis of the operation of
code provisions dealing with wages, hours, trade practices, and other provisions. These
and other matters are canvassed not only in terms of the materials to be found in the files,
but also in terms of the experiences of the deputies and others concerned with code formation
and administration.
The Code Histories, (including histories of certain NRA units or agencies) are not
mimeographed. They are to be turned over to the Department of Commerce in typewritten form.
All told, approximately eight hundred and fifty (850) histories will be completed. This
number includes all of the approved codes and seme of the unapproved codes. (In Work Mate-
rials No _ 18, Contents of Code Histories, will be found the outline which governed the
preparation of Code Histories.)
(In the case of all approved codes and also in the case of seme codes not carried to
final approval, there are in NRA files further materials en industries. Particularly worthy
of mention are the Volumes I, II and III which c nstitute the material officially submitted
to the President in support of the recommendation for approval of each code. These volumes
9675—1 .
set forth the origination of the code, the sponsoring group, the evidence advanced to sup-
port the proposal, the report of the Division of Research and Planning on the industry, the
recommendations of the various Advisory Boards, certain types of official correspondence,
the transcript of the formal hearing, and other pertinent matter. There is also much offi-
cial information relating to amendments, interpretations, exemptions, and other rulings. The
materials mentioned in this paragraph were of course not a part of the work of the Division
of Review. )
THE WORK MATERIALS SERIES
In the work of the Division of Review a considerable number of studies and compilations
of data (other than those noted below in the Evidence Studies Series and the Statistical
Materials Series) have been made. These are listed below, grouped according to the char-
acter of the material. (In Work Materials No 17, Tentative Outlines and Sj^maries of
Studies in Process, these materials are fully described).
Industry Studies
Automobile Industry, An Economic Survey of
Bituminous Coal Industry under Free Competition and Code Regulation, Economic Survey of
Construction Industry and NRA Construction Codes, the
Electrical Manufacturing Industry, The
Fertilizer Industry, The
Fishery Industry and the Fishery Codes
Fishermen and Fishing Craft, Earnings of
Foreign Trade under the National Industrial Recovery Act
Part A - Competitive Position of the United States in International Trade 1927-29 through
1934.
Part B - Section 3 (e) of NIRA and its administration.
Part C - Imports and Importing under NRA Codes.
Part D - Exports and Exporting under NRA Codes.
Forest Products Industries, Foreign Trade Study of the
Iron and Steel Industry, The
Knitting Industries, The
Leather and Shoe Industries, The
Lumber and Timber Products Industry, Economic Problems of the
Men's Clothing Industry, The
Millinery Industry, The
Motion Picture Industry, The
Migration of Industry, The: ,The Shift of Twenty-Five Needle Trades From New York State,
1926 to 1934
National Income, A study of.
Paper Industry, The
Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans-
portation, January 1923, to date
Retail Trades Study, The
Rubber Industry Study, The
Statistical Background of NRA
Textile Industry in the United Kingdom, France, Germany, Italy, and Japan
Textile Yarns and Fabrics
Tobacco Industry, The
Wholesale Trades Study, The
9675.
- Ill -
Women's Apparel Industry, Some Aspects of the
Trade Practice Studies
Commodities, Information Concerning: A Study of NRA and Related Experiences in Control
Distribution, Manufacturers' Control of: A Study of Trade Practice Provisions in Selected
NRA Codes
Design Piracy: The Problem and Its Treatment Under NRA Codes
Electrical Mfg. Industry: Price Filing Study
Fertilizer Industry: Price Filing Study
Geographical Price Relations Under Codes of Fair Competition, Control of
Minimum Price Regulation Under Cedes of Fair Competition
Multiple Basing Point System in the Lime Industry: Operation of the
Price Control in the Coffee Industry
Price Filing Under NRA Codes
Production Control Under NRA Codes, Some Aspects of.
Resale Price Maintenance Legislation in the United States
Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry.
Trade Practice Rules of The Federal Trade Commission (1914-1936): A classification for
comparison with Trade Practice Provisions of NRA Codes.
Labor Studies
Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-1935
Hours and Wages in American Industry
Labor Program Under the National Industrial Recovery Act, The
Part A, Introduction
Part B, Control of Hours and Reemployment
Part C. Control of Wages
Part D. Control of Other Conditions of Employment
Part E. Section 7(a) of the Recovery Act
PRA Census of Employment, June, October, 1933
Puerto Rico Needlework, Homeworkers Survey
Administrative Studies
Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con-
ditional Orders of Approval
Administrative Interpretations of NRA Codes
Administrative Law and Procedure under the NIRA
Agreements Under Sections 4(a) and 7(b) of the NIRA
Approved Codes in Industry Groups, Classification of
Basic Code, the — (Administrative Order X-61)
Code Authorities and Their Part in the Administration of the NIRA
Part A. Introduction
Part B. Nature, Composition and Organization of Code Authorities
Part C. Activities of the Code Authorities
Part D. Code Authority Finances
Part C. Summary and Evaluation
9675 .
- IV -
Code Compliance Activities of the NRA
Code Making Program of the NRA in the Territories, The
Code Provisions and Related Subjects, Policy Statements Concerning
Content of NIRA Administrative Legislation
Part A. Executive and Administrative Orders
Part B. Labor Provisions in the Codes
Part C. Trade Practice Provisions in the Codes
Part D. Administrative Provisions in the Codes
Part E. Agreements under Sections 4(a) and 7(b)
Part F. A Type Case: The Cotton Textile Code
Labels Under NRA, A Study of
Model Code and Model Provisions for Codes, Development of
National Recovery Administration, The: A Review and Evaluation of its Organization and
Activities
NRA Insignia
President's Reemployment Agreement, The
President's Reemployment Agreement, Substitutions in Connection with the
Prison Labor Problem under NRA and the Prison Compact, The
Problems of Administration in the Overlapping of Code Definitions of Industries and Trades,
Multiple Code Coverage, Classifying Individual Members of Industries and Trades
Relationship .>f NRA to Government Contracts and Contracts Involving the Use of Government
Funds
Relationship of NRA with other Federal Agencies
Relationship of NRA with States and Muncipalities
Sheltered Workshops Under NRA
Vijgpdifiec} Inaystries; A study of Factors Limiting the Code Making Program
Le^al Studies
Anti-Trust Laws and Unfair Competition
Collective Bargaining Agreements, the Right of Individual Employees to Enforce Provisions of
caaerce Clai:se, Possible Federal Regulation of the Employer-Employee Relationship Under the
Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial
Regulatory Legislation
Enforcement, Extra-Judicial Methods of
Federal Regulation through the Joint Employment of the Power of Taxation and the Spending
Power
Gcvsrnment Contract Previsions as a Means of Establishing Proper Econ mic Standards, Legal
Memorandum on Possibility of
Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com-
merce Clause, Cases on
Legislative Possibilities of the State Constitutions
Post Office and Post Road Power — Can it be Used as a Means of Federal Industrial Regula-
tion?
State RocGvcry Legislation in Aid of Federal Recovery Legislation History and Analysis
Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in
Trade Practices and the Anti-Trust Laws
Treaty Making Power of the United States
War Power, Can it be Used as a Means of Federal Regulation of Child Labor?
9675.
_ V _
THE EVIDENCE STUDIES SERIES
The Evidence Studies were originally undertaken to gather material for pending court
oases. After the Schechter decision the project was continued in order to assemble data for
use in connection with the studies of the Division of Review. The data are particularly
concerned with the nature, size and operations of the industry; and v/ith the relation of the
industry to interstate coaaerce. The industries covered by the Evidence Studies account for
more than one-half of the total number of workers under codes. The list of these studies
follows:
Automobile Manufacturing Industry
Automotive Parts and Equipment Industry
Baking Industry
Boot and Shoe Manufacturing Industry
Bottled Soft Drink Industry
Builders' Supplies Industry
Canning Industry
Chemical Manufacturing Industry
Cigar Manufacturing Industry
Coat and Suit Industry
Construction Industry
Cotton Garment Industry '
Dress Manufacturing Industry
Electrical Contracting Industry
Electrical Manufacturing Industry
Fabricated Metal Products Mfg. Industry and
Metal Finishing and Metal Coating Industry
Fishery Industry
Furniture Manufacturing Industry
General Contractors Industry
General Contractors Industry
Graphic Arts Industry
Graphic Arts Industry
Gray Iron Foundry Industry
Hosiery Industry
Infant's and Children's Wear Industry
Iron and Steel Industry
Leather Industry
Lumber and Timber Products Industry
Mason Contractors Industry
Men's Clothing Industry
Motion Picture Industry
Motor Vehicle Retailing Trade
Needlework Industry of Puerto Rico
Painting and Paperhanging Industry
Photo Engraving Industry
Plumbing Contracting Industry
Retail Lumber Industry
Retail Trade Industry
Retail Tire and Battery Trade Industry
Rubber Manufacturing Industry
Rubber Tire Manufacturing Industry
Shipbuilding Industry
Silk Textile Industry
Structural Clay Products Industry
Throwing Industry
Trucking Industry
Waste Materials Industry
Wholesale and Retail Food Industry
Waste Materials Industry
Wholesale and Retail Food Industry
Wholesale Fresh Fruit and vegetable Indus-
try
Wool Textile Industry
THE STATISTICAL MATERIALS SERIES
This series is supplementary to the Evidence Studies Series. The reports include data
en establish:ients, firms, employment, payrolls, wages, hours, production capacities, ship-
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports.
T'r.3j also include notes on the principal qualifications that should be observed in using the
data, the technical methods employed, and the applicability of the material to the study of
the industries concerned. The following numbers appear in the series:
9675.
— VI -
Asphalt Shingle and Roofing Industry
Business Furniture
Candy Manufacturing Industry
Carpet and Rug Industry
Cement Industry
Cleaning and Dyeing Trade
Coffee Industry
Copper and Brass Mill Products Industry
Cotton Textile Industry
Electrical Manufacturing Industry
9675.
Fertilizer Industry
Funeral Supply Industry
Glass Container Industry
Ice Manufacturing Industry
Knitted Outerwear Industry
Paint, Varnish, and Lacquer, Mfg. Industry
Plumbing Fixtures Industry
Rayon and Synthetic Yarn Producing Industry
Salt Producing Industry
Live Music Archive
Librivox Free Audio
Metropolitan Museum
Cleveland Museum of Art
Internet Arcade
Console Living Room
Books to Borrow
Open Library
TV News
Understanding 9/11