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 Registry No. 924—1—01 
 
 NATIONAL RECOVERY ADMINISTRATION 
 
 PROPOSED CODE OF FAIR COMPETITION 
 
 FOR THE 
 
 HEEL MANUFACTURING 
 INDUSTRY 
 
 AS SUBMITTED ON AUGUST 31, 1933 
 
 UNIV. OF FL Lli. 
 
 Pg^UHf WT^ Pin 
 
 I I « ii ' « — * 
 
 U.S. OEPOWTOHY 
 
 The Code for the Heel Manufacturing Industry 
 
 in its present form merely reflects the proposal of the above-mentioned 
 
 industry, and none of the provisions contained therein are 
 
 to be regarded as having received the approval of 
 
 the National Recovery Administration 
 
 as applying to this industry 
 
 UNITED STATES 
 
 GOVERNMENT PRINTING OFFICE 
 
 WASHINGTON : 1933 
 
 For sale by the Superintendent of Documents, Washington, D.C. -«-..-•- Price 5 cents 
 
Submitted by 
 
 NATIONAL HEEL MANUFACTURERS' ASSOCIATION 
 
 (n) 
 
^NATIONAL HEEL MANUFACTURERS' ASSOCIATION CODE 
 
 The following code has been adopted by the members of the 
 National Heel Manufacturers' Association as a code of fair competi- 
 tion for their industry. 
 
 In accordance with the provisions of the Industrial Recovery Act 
 they request the President of the United States to approve this 
 Code, and they herein express their cognizance of the fact that after 
 this Code has been approved any violation of this Code shall be 
 deemed an unfair method of competition and a misdemeanor, and 
 upon conviction thereof an offender may be fined not more than 
 $500.00 for each offense, and each day such violation continues shall 
 be deemed a separate offense. 
 
 As a matter of record this Association incorporates in its Code 
 the following provisions of the Industrial Recovery Act : 
 
 1. Sec. 3. (1) This Association will impose no inequitable re- 
 strictions on admission to membership and is truly representative 
 of the heel building industry, and (2) that this Code is not designed 
 to i^romote a monopoly or to eliminate or oppress small enterprises 
 and will not operate to discriminate against them. 
 
 2. Sec. 7. (a) The employees of members of this Association shall 
 have the right to organize and bargain collectively through repre- 
 sentatives of their own choosing, and shall be free from the inter- 
 ference, restraint, or coercion of employers of labor, or their agents, 
 in the designation of such representatives or in self-organization or 
 in other concerted activities for the purpose of collective bargaining 
 or other mutual aid or protection; (2) that no employee and no one 
 seeking employment shall be required as a condition of employment 
 to join any company union or to refrain from joining, organizing, or 
 assisting a labor organization of his own choosing; and (3) that em- 
 ployers shall comply with the maximum hours of labor, minimum 
 rates of pay, and other conditions of employment, approved or pre- 
 scribed by the President. 
 
 3. Menibershi/p. — Any person, firm, or corporation engaged in the 
 manufacture of built-up heels for the purpose of sale and not for its 
 own use is eligible to membership in this Association. 
 
 4. Maximuin Hours. — The maximum hours of labor shall be not 
 more than 48 hours in any one week nor over 1,040 hours in any 
 six months. 
 
 This is an average of 40 hours per week but permits 48 hours per 
 week in the busy seasons. 
 
 The restriction of 48 hours does not apply to the following: Offi- 
 cials, superintendents, foremen, salesmen, firemen, watchmen, ship- 
 pers, persons engaged in transportation outside the factory, repair 
 <?rews, and office staff. 
 
 5. Minimum Wage. — The minimum rates of pay for all exper- 
 ienced employees shall be 25 cents per hour. 
 
 9448—33 (1) 
 
For beginners, the minimum wace shall be for the first three- 
 months not less than 20 cents per hour, for the second three months- 
 not less than 22 cents per hour ; after six months, 25 cents per hour. 
 
 In all cases, piece-work rates shall be such as will permit the 
 lowest paid employee in each class to earn the hourly rate above 
 specified. 
 
 The industry does not guarantee any fixed average hours or aver- 
 age pay per week. 
 
 6. Juveniles. — No person under 16 years of age shall be employed 
 in any capacity. 
 
 7. Cost Accounting. — Some simple but complete cost-accounting 
 system will be adopted and in any question of cost arising under 
 this Code the method of cost finding adopted by the Association 
 shall be considered the standard method and the true cost. 
 
 8. Selling Below Cost. — The sale of any heel, or the quoting of a 
 price on any heel, below the cost of that heel as figured by the- 
 method adopted by the Association shall be considered an unfair 
 practice and a violation of this Code. 
 
 9. Fair Sales Price. — A fair selling price is one that is not less 
 than 15% above the true cost as reckoned by the method adopted 
 by the Association, if this is allowable under the law. 
 
 10. Terms of Sale. — The only terms on which heels may be sold 
 are an allowance of a discount of 4% for payment on or before the 
 fifteenth of the month following the date of the invoice; after that 
 time all invoices are net. All invoices are due and payable in 
 60 days from date. 
 
 The allowance of more liberal terms in amount and/or time is 
 an unfair practice and a violation of this Code. 
 
 11. Seci'et Reliates. — As one of the prime objects of this Associa- 
 tion is to develop open and fair competition and to do away with 
 underhanded and dishonorable practices, the granting of secret 
 rebates in any form is an unfair practice and a violation of this 
 Code. 
 
 Secret rebates include special services and special discounts not 
 generally allowed to purchasers of heels, as well as credits and 
 allowances which in effect amount to a reduction in the price of 
 the goods. 
 
 12. False Invoices. — All invoices for heels should state fully and 
 clearly the exact details of the transaction and any deviation in 
 an invoice from the true facts is an unfair practice and a violation 
 of this Code. 
 
 13. Fraudulent and Deceptive Practices. — Any act which is in 
 the nature of bribery or which has for its object the unethical 
 influencing of a buyer is an unfair practice and a violation of this 
 Code. This title includes gratuities to buyers, inducing sales by 
 payment of commissions or rewards to employees of users of heels, 
 lavish entertainment, etc. 
 
 14. Unifoi^i Contracts. — As it is not for the best interest of the 
 industry to have any of its members enter into contracts for uncer- 
 tain quantities of merchandise for indefinite periods, any contract 
 which extends into the future over 90 days from its date is an 
 unfair practice and a violation of this Code. 
 
Under this section a member may enter into contracts for future 
 delivery for a stated number of pairs of heels, or for a customer's 
 requirements, to be shipped during the ninety-day period, at the 
 price for each size and style as shown in the contract. 
 
 The Association believes that contracts should be binding on both 
 parties. It expects any member who makes a contract with a cus- 
 tomer to live up to the terms of the contract. Likewise, the Associa- 
 tion expects that customers who have made contracts with its mem- 
 bers will live up to the terms thereof. To accomplish this end the 
 Association will use its best efforts. 
 
 The Association strongly recommends that if at any time a member 
 has a contract with a purchaser which the purchaser refuses to carry 
 out to the satisfaction of the member, that the member should not 
 enter into any further contract with that purchaser, but should 
 report the facts in detail to the Secretary for consideration and pos- 
 sible action by the Association. 
 
 15. Freight and Cartage Allowances. — An allowance for freight 
 and/or cartage of an amount exceeding the actual freight and cartage 
 is an unfair practice and a violation of this Code. 
 
 16. Examination of Boohs of Account. — It is agreed by each of 
 the members of this Association that in case the cost of any of their 
 heels is questioned, under the Section of this Code forbidding the 
 sale pf heels below cost, that the Board of Directors or an accountant 
 of its choosing may examine the books of the concern in question 
 so far as they have to do with the cost of manufacture of heels. 
 
 The cost of such accounting shall be paid from the funds of the 
 Association. 
 
 17. Reports to Secretary. — The members of the Association agree 
 to make such reports to the Secretary as the Board of Directors of 
 this Association may from time to time vote to request from its 
 members. 
 
 Under no circumstances shall the Secretary divulge to anyone 
 the contents of the report of a member. He shall compile and edit 
 such reports and pass the information on to every member, but in such 
 form that the information furnished by any individual member can- 
 not be identified. A member who has not sent in a report of his own 
 business is not entitled to receive from the Secretary reports contain- 
 ing information based on the business of others. 
 
 It is agreed that if the Board of Directors has any doubt about the 
 accuracy of any report or reports submitted by a member that it may 
 employ an accountant to examine the books of the member in ques- 
 tion ; the member agrees to allow such an inspection of his books, the 
 cost of the inspection to be paid out of the funds of the Association. 
 
 The following reports to the Secretary are required under this 
 Code: 
 
 (a) Monthly reports of the number of pairs of heels invoiced 
 during the preceding month, the report to state separately the pairs 
 of all-leather heels and combination heels. 
 
 (b) Name and address of any customer who has not paid any 
 invoice within sixty days from its date. 
 
 18. Dues. — The members of this Association agree that they will 
 pay monthly dues sufficient to support the Association. 
 
The amount of the dues shall be determined by the Board of" 
 Directors and shall be on a pi"o rata basis to each member, either as a> 
 percentage of dollar sales or per pair of heels. 
 
 The neglect to pay dues shall be considered a violation of this 
 Code. 
 
 19. Discounts to Dealers. — It is agreed that a commission of 5% 
 is a sufficient recompense to a dealer who buys heels for resale or 
 who sells heels on commission. 
 
 The allowance to a dealer of a larger recompense than 5% of the 
 sale price of the heels is an unfair practice and a violation of this 
 Code. 
 
 No user of heels may be considered as an agent or dealer. 
 
 20. Adjustment Committee. — Any member of this Association who 
 feels himself aggrieved at any action, or supposed action of a fellow 
 member, which he deems to be a violation of any Section of this Code, 
 may make complaint in writing to the Board of Directors, stating in 
 his complaint the name of the supposed offender, the name of the 
 customer involved, and all the facts pertaining to the case of which 
 he is aware. 
 
 Upon receipt of any grievance in writing from a member, the 
 Board of Directors shall within ten (10) days appoint an Adjust- 
 ment Committee of three (3) members to investigate the complaint. 
 
 The Adjustment Committee shall promptly use all diligence to 
 discover the true facts in the case, and render a decision with; or 
 without penalties, which decision shall be final. 
 
 21. Attempt to Break Contract. — The inducing, or attempt to 
 induce, a user of heels to break a contract in effect between him and 
 a competitor is an unfair practice and a violation of this Code. 
 
 22. Defamation of Competitor. — Defamatory remarks about a 
 competitor, as regards his character, business methods, or integrity 
 are an unfair practice and a violation of this Code. 
 
 23. Purchases of Raw Materials. — The paying of more than the 
 market prices for raw materials (leather) to a user of heels is a 
 form of rebate and is an unfair practice and a violation of this Code. 
 
 24. This Code shall become effective 10 days after its approval by 
 the President of the United States. 
 
 25. This Code shall be in effect during the effective life of the 
 Industrial Recovery Act, or until the Act is rendered void by the 
 President of the United States or by an Act of Congress, but while 
 this Code is in effect it may be amended or altered at any time in the 
 following manners: 
 
 (a) By an affirmative vote of members who sold at least 65% of 
 the heels sold during the preceding calendar year, provided these 
 members are not less than 65% of the total membership. 
 
 (b) By order of the President of the United -States after consul- 
 tation with this Association. 
 
NATIONAL HEEL MANUFACTURERS' ASSOCIATION BYLAWS 
 
 Article I — Name 
 
 Section 1. The name of the Association shall be National He6l 
 Manufacturers' Association. 
 
 Article II — Object . 
 
 Section 1. The object of this Association shall be to foster the 
 interests of its members and those in any way related by common 
 business interests to the business of manufacturing built-up heels, 
 and maintaining uniformity and equity in the customs and usages 
 of the heel-manufacturing trade; to acquire, preserve, and dissemi- 
 nate Taluable business information ; to promote a more enlarged and 
 friendly intercourse among those engaged in the manufacturing of 
 heels; to do anything necessary, suitable, and proper for the accom- 
 plishment of any purposes herein set forth or which may be recog- 
 nized as proper and lawful objectives of trade associations; all of 
 which shall be consistent with the public interest as well as in the 
 interest of this industry and trade. 
 
 Article III — Membership 
 
 Section 1. Active. — Any person, firm, or corporation engaged in 
 the manufacture of built-up heels is eligible to become an active 
 member of this association. 
 
 Sec. 2. Voting. — Each member firm and corporation shall appoint 
 and certify to the secretary of the association a member or an officer 
 to be its representative in the association and he shall represent, vote, 
 and act for the member in all affairs of the association, including the 
 holding of office therein. 
 
 Sec. 3. Election of Meiiihers. — Any person, firm, or corporation 
 eligible to membership under these bylaws on making written appli- 
 cation therefor shall be elected to membership. 
 
 Sec. 4. Duration of memhership and resignation. — Membership in 
 this association may terminate by death, voluntary withdrawal as 
 herein provided, or otherwise in pursuance of these bylaws. The 
 right of a member to vote and all other rights, title, and interest of a 
 member in or to the association, its rights, privileges, and property 
 shall cease on the termination of membership. Any member may by 
 giving written notice of such intention withdraw from membership. 
 Such notice shall be presented to the Board of Directors at the next 
 succeeding meeting of the Board of Directors. Withdrawals shall 
 be effective upon fulfillment of all obligations to the date of 
 withdrawal. 
 
 Sec. 5. Suspension and Expulsion. — For cause, any membership 
 may be suspended or terminated. Sufficient cause for such suspen- 
 
 (5) 
 
6 
 
 sion or termination of membership shall be violation of bylaws, code, 
 or any agreement, rule, or practice properly adopted by the associa- 
 tion, or any other conduct prejudicial to the interests of the associ- 
 ation. Such suspension or expulsion shall be by two thirds vote of 
 the entire membership of the Board of Directors : Provided, That a 
 statement of the charges shall have been mailed by registered post 
 to the last recorded address of the member at least fifteen (15) days 
 before final action is taken thereon. This statement shall be accom- 
 l^anied by a notice of the time and place of the meeting of the Board 
 of Directors at which the charges shall be considered and the member 
 shall have the opportunity to appear and present any defense to such 
 charges before action is taken thereon. 
 
 Sec. 6. Division of Menibers. — The active members of the associ- 
 ation may be divided into geographical divisions as may be desig- 
 nated by the Board of Directors. Each division may form such 
 auxiliary organizations for the purpose of coordinating and aiding in 
 the general objects of the association as may not be inconsistent with 
 these bjdaws or interfere in any way with the activities or affairs of 
 the association. 
 
 Article IV — Dues 
 
 Section 1. The annual dues for each member of the association 
 shall be determined by the Board of Directors but shall be propor- 
 tionate to the dollar amount of or volume of business done by each 
 member during the preceding year. 
 
 Sec. 2. Members wdio fail to pay their dues or assessments within 
 thirty days from the time the same become due shall be notified by 
 the secretary, and if payment is not made within the next succeeding 
 thirty days, shall be reported to the Board of Directors as in arrears 
 and, if so ordered, shall be dropped from the rolls and thereupon 
 forfeit all rights and privileges of membership. 
 
 Sec. 3. The fiscal year shall be from June 1 to May 30. 
 
 Article V — Meetings 
 
 Section 1. Annual. — There shall be an annual meeting of the 
 association during the month of July, unless otherwise ordered by 
 the Board of Directors, for election of members of the Board of 
 Directors for receiving the annual reports and the transaction of 
 other business. Notice of such meeting, signed by the secretary, 
 shall be mailed to the last recorded address of each member at least 
 fourteen (14) days before the time appointed for the meeting. 
 
 Sec. 2. Regular. — Regular meetings of the association shall be held 
 on written notice of time and place and subjects to be considered, 
 notice being given ten (10) days in advance of each meeting. 
 
 Sec. 3. Special. — Special meetings of the association may be called 
 by the Board of Directors. Upon the written request of five (5) 
 members of the association, the Board of Directors shall call a special 
 meeting. Notice of any special meeting shall be given five (5) days 
 in advance with the statement of time and place and the information 
 as to the subject or subjects to be considered. 
 
 Sec. 4. Quoi'uin. — Seven members present at any meeting of the 
 association shall constitute a quorum, and in case there be less than 
 
this iramber the presiding oiRt3er may adjourn the meeting from 
 time to time until a quorum is present. 
 
 Article VI — Annual Election 
 
 Section 1. At the annual meeting next held after the adoption of 
 these bjdaws, there shall be elected by ballot five (5) directors of 
 the association, two (2) of whom shall bo elected for a term of 
 one year, two (2) for two years, and one (1) for three years. At 
 each annual meeting thereafter a number of directors equal to that 
 of those whose terms have expired shall be elected for a term of 
 three 3^ears. Any director shall be eligible for reelection. 
 
 Sec. 2. The Board of Directors shall elect a president, vice presi- 
 dent, and a secretary-treasurer of the association who shall serve to 
 the end of the next annual meeting, or sucli time as their respective 
 successors are duly elected and take office. 
 
 Article VII — Board of Directors 
 
 Section 1. Govermnent of association. — The property, affairs, 
 business, and concerns of the association shall be vested in a Board 
 of Directors, consisting of five (5) directors. The members of the 
 said board shall, upon election, immediately enter upon the per- 
 formance of their duties and shall continue in office until their 
 successors shall be duly elected and qualified. 
 
 Sec. 2. Duties. — The Board of Directors shall have control and 
 management of the affairs of the association, with authority to en- 
 gage assistants, fix salaries, admit, suspend, or expel members, and 
 to do everything necessary and desirable in the conduct of the busi- 
 ness of the association, and in accordance with the bylaws. 
 
 Sec. 3. Meetings. — A regular meeting of the Board of Directors 
 for the election of officers shall be held immediately following the 
 annual meeting. The president may, when he deems necessary, or 
 the secretary shall, at the request in writing of three (3) members 
 of the board, issue a call for a special meeting of the board, and 
 only five (5) days' notice shall be required for such special meetings. 
 
 Sec. 4. Qworum. — A majority of the board shall constitute a 
 quorum for the election of officers and all other purposes not other- 
 wise provided for herein. In the absence of the president, the vice 
 president may preside, otherwise the members present may choose a 
 chairman for the meeting. 
 
 Sec. 5. Absence. — Any member of the Board of Directors absent 
 from a meeting should send a communication to the president or 
 secretary stating his reason for his absence, and the membership 
 of the board in attendance shall decide in each instance whether or 
 not such absence is excusable. In the event there are three con- 
 secutive unexcused absences on the part of any member of the 
 Board of Directors, his membership on the board may be declared 
 vacant. 
 
 Sec. 6. Vacancies. — Any vacancies that may occur on the board by 
 reason of death, resignation, or otherwise may be filled by the Board 
 of Directors for the unexpired term. 
 
Article VIII — ^Ofticers 
 
 Section 1. President. — The president shall be the executive officer 
 of the organization, and shall preside at meetings of the association 
 and of the Board of Directors and shall perform such other duties 
 as are necessarily incident to the office of president of the asso- 
 ciation or as may be prescribed by the Board of Directors. 
 
 Sec. 2. Vice President. — In case of death or absence of the presi- 
 dent or of his inability from any cause to act, the vice president 
 shall be designated by the Board of Directors to perform for the 
 time being the duties of the president's office. 
 
 Sec. 3. Secretary-Treasurer. — The secretary-treasurer shall keep 
 an account of all monies received and expended for the use of the 
 association and shall make disbursements authorized by the board. 
 All sums received he shall deposit in the bank, or banks, or trust 
 company approved by the Board of Directors and shall make a 
 report at the annual meeting or when called upon by the president. 
 It shall also be his duty to give notice of and attend all meetings 
 of the association and of the Board of Directors and keep a record 
 of their proceedings ; to conduct all correspondence and to carry into 
 execution all orders, votes, and resolutions not otherwise committed ; 
 to keep a list of the members of the association; to collect annual 
 dues and subscriptions ; to prepare under the direction of the Board 
 of Directors an annual report of the transactions and conditions 
 of the association and generally to devote his best efforts to forward- 
 ing the business and advancing the interest of the association. 
 
 Sec. 4. The secretary-treasurer shall at the discretion of the Board 
 of Directors furnish at the expense of the association a fidelity bond 
 approved by the Board, in such a sum as the Board shall prescribe. 
 
 Article IX — Committees 
 
 Section 1. Adjustment Com/mittee. — ^Whenever a grievance in 
 writing is received from any member of the association, the Board of 
 Directors shall within ten days from its receipt, appoint an Adjust- 
 ment Committee of three members who shall investigate the griev- 
 ance and make a decision which shall be final. 
 
 Sec. 2. G ommittee on nowiinations. — At least sixty (60) days be- 
 fore the annual meting, the Board of Directors shall appoint a 
 nominating committee of five members, none of whom shall be a 
 member of the board, whose duty it shall be to nominate candidates 
 for directors to be elected at the next annual election. Thej^ shall 
 notify the secretary, in writing, at least thirty (30) daj^s before the 
 date of the annual meeting, of the names of such candidates, and the 
 secretary shall mail at least twenty (20) days before the annual 
 meeting a copy thereof to the last recorded address of each member. 
 
 Sec. 3. Independent nominations. — Nominations for directors may 
 also be made, indorsed with the names of not less than seven (7) 
 members of the association, if received by the secretary at least five 
 days prior to the annual meeting of the association for immediate 
 transmittal by him to the members. 
 
Article X — ^Mail Vote 
 
 Section 1. Whenever, in the judgment of the Board of Directors, 
 any question shall arise which it considers should be put to a vote 
 of the active membership and when it deems it inexpedient to call 
 a special meeting for such purpose, the directors may, unless other- 
 wise required by these bylaws, submit such matter to the member- 
 ship in writing by mail for vote and decision, and the question 
 thus presented shall be determined according to 65% of the votes 
 received by mail within two (2) weeks after such submission to 
 the membership. Any and all action taken or omitted to be taken 
 in pursuance of a majority mail vote in each such case shall be 
 binding upon the association and as against each member thereof. 
 
 Article XI — Industrial Recovery Act Code 
 
 If any provision of these Bylaws is at variance with the provisions 
 of the Code adopted by the association under the Industrial Recov- 
 ery Act, the provisions of the Code shall prevail. 
 
 Article XII — ^Amendments 
 
 Section 1. These bylaws may be amended, repealed, or altered, 
 in whole or in part, by a two-thirds vote at any duly organized 
 meeting of the association, provided the proposed change is sub- 
 mitted by mail to the last-recorded address of each member at least 
 thirty (30) days before the time of the meeting which is to consider 
 the change. 
 
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