NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
LIGHT SEWING INDUSTRY
AS APPROVED ON JUNE 29, 1934
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Approved Code No. 226-Amendment No. 3
Registry No. 299-50
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Approved Code No. 226-Amendment No. 8
AMENDMENT TO CODE OF FAIR COMPETITION
LIGHT SEWING INDUSTRY EXCEPT GARMENTS
As Approved on June 29, 1934
MODIFICATION OF CODE OF FAIR COMPETITION FOR THE LIGHT SEWING
INDUSTRY EXCEPT GARMENTS
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a modification
of a Code of Fair Competition for the Light. Sewing Industry Except
Garments, and hearings having been duly held thereon and the an-
nexed report on said modification, containing findings with respect
thereto; having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by ExecutiveOrders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate, by reference, said an-
nexed report and do find that said modification and the Code as con-
stituted after being modified comply in all respects with the pertinent
provisions and will promote the policy and purposes of said Title of
said Act, and do hereby order that said mollification be and it is
hereby approved, and that the previous approval of said Code is
hereby modified to include an approval of said Code in its entirety
HUGH S. JOHNSON,
Administrator for IndustHial Recovery.
R. L. HOUSTON,
June Z9, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the hearing on an amendment to the Code
of Fair Competition for the Light Sewing Industry Except Gar-
ments, held in Room 109 of the Raleigh Hotel on April 26, 1934.
The amendment, which is attached, was presented by the Divisional
In accordance with the customary procedure, every person who
had filed request for an appearance was freely heard in public, and
all statutory and regulatory requirements were complied with.
The amendment consists of several additional unfair trade prac-
tices including a prohibition against selling below cost when, and
if, a standard system of cost accounting or estimating is approved
by the Administrator. The amendment also provides that learners
may be employed for a period of not more than four (4) weeks at
80% of the minimum wage but limits the number of learners to 10%
of the total number of employees.
The Deputy Administrator in his final report to me on said amend-
ment to said Code having found as herein set forth and on the basis
of all proceedings in this matter:
I find that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act, including the removal of ob-
structions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the gen-
eral welfare by promoting the organization of industry for the
purpose of cooperative action among trade groups, by inducing and
maintaining united action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production (except as may be temporarily required), by
increasing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving un-
employment, by improving standards of labor, and by otherwise
(b) The Code as amended complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The Code empowers the Divisional Committee to pri'sent the
aforesaid amendment on behalf of the Division as a whole.
(d) The amendment and the Code as amended are not td-ilned to
and will not permit monopolies or monopolistic practie-4.
(e) The amendment and the Code as iamnentded are lint d'ign~ed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other .steps of the tven ii, ii, pr,'ce,.s 1i:iv not
been deprived of the right to be heard prior to :approval of said
For the above reasons this amendment has been approv,-.l by me.
HUGH S. Jn I ,sx;.,-
Adi, n hi'raO.t.
JUNE 29, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE LIGHT SEWING INDUSTRY EXCEPT GARMENTS
Division No. 5, Fabric Auto Equipmeint Division, shall be amended
There shall be added to Article II-Trade Practices-the following
"(j) To make any allowance or discount for advertising or for
payment for space in newspapers, magazines, guides, or directories
on behalf of any retailer and/or wholesaler to be used in promoting
the sale of merchandise to the consumer in excess of one-half of the
cost of the advertising; providing, however, that payment for such
advertising shall not be made until a copy of the publication contain-
ing the advertising together with receipted bill therefore is presented
to a member of the Division. The supplying of cuts, matrices, or
window cards shall not be included in such prohibition. Nothing
herein, however, shall prohibit any member of the Division from
nationally or generally advertising his merchandise.
"(k) To make a contract for a definite quantity of advertising tire
covers at a stipulated price and to deliver a smaller quantity without
charging the regular price applying to the quantity delivered.
"(I) To accept orders for future requirements which do not make
provision for quantities, excepting that an average or underage of
10% is allowed."
Section (h) of Article II shall be amended to read as follows:
Selling on more liberal terms than 2%, 10 days E.O.M., net 30
except that dating on seasonable merchandise may be allowed, but
anticipation shall not be allowed at a rate of more than 1/2 of 1%
There shall be added an Article III as follows:
"When a standard system of cost nccuiinting and methods of cost
finding and/or estimating capable of use by all members of the
Division is prepared by the Divisional Committee and approved by
the Administrator, full details concerning said system shall be made
available to all members of the Division. Thereafter, all members
of the Division shall determine and/or estimate costs in accordance
with the principles of such methods.
"Following the approval of such system no member of the Divi-
sion shall sell or exchange or offer to sell any product of the Division
below his own cost of making such product, except to meet the com-
petition of any member of the Division whose price for a product of
equivalent quality is not less than his cost of making the product.
"The Divisional Committee shall have the power to suspend the
operation of the provisions of this Article provided five days' notice
is given the Administrator and the members of the Division, and to
make provisions for the disposal of discontinued lines, seconds, and
other sales to be excepted from the application of this Article."
There shall be added an Article IV as follows:
"Learners may be employed for a period not exceeding four (4)
weeks at a rate of not less than 80o' of the minimum wages called
for in the Code, provided that no employer may employ more than
10% of the total employees as learners, and provided further that
any employer may be entitled to one learner at the above specified
wage, and provided further that no employer can employ as a learner
any employee who has been in the Division of the Industry within
three years previous to the date of such employment."
Approved Code No. 226, Amendment No. 3.
Registry No. 299-50.
UNIVERSITY OF FLORIDA
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