NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND NEGLIGEE INDUSTRY
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For aleby he Sperndeien of Docruments, Washingoon, D.O. --------*rc et
Approved Code No. 408
Registry No. 2177-1--01
AS APPROVED ON APRIL 27, 1934
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Approved Code No. 408
COD)E: OF FAIR COMPETITION
UNVDERGARMENT ANLD NEG[IGIEE INDhUSTtlRY
As Approved on. April 27, 1934
CODE OF FAIR COMPETITION FOR THIE UNDERGARMIENT AND NEGLIGEE
An application having been. duly made pursuant to and in full com-
pliance with the provisions of Title I of the National Industrial Recov-
er Act, approved June 16, 1933, for approval of a Code of Fair Com-
pet~ition for the Undergarment and Negligee I[ndustry, and hearings
having been duly held thereon and the annex-ed report on said Code,
containing findings with respect thereto, having been made and
directed to the President:--
NOW, THEREFORE, on behalf of the President of the U~nited
State~s, I Hugh S. Johinson, Administrator for Industrial Recovery,
pursuant to authority vested in me by ExecutivJe Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by preference~ said annexed
report and do frnd that said Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of said
Title of said Act; and do hereby order that said Code of ]Fair Compe-
tition be and it is hereby approved, subject to thle follow\ingb conditions:
(1) THEAT`, if the Admzinistrator shall find upon the completion of
the study and survey now being conducted and/or upon the comrple-
t~ion of such public hearings as he may specify, that the Code Author-
ity selected in the manner provided by Sections 1 and 2 of Article VI
of the Code, is not truly representative of the Industry- a~nd that it
does not truly represent all elemnent~s in the Industry, or does not in
other respects complyS withr the provisions of the Act, theo Administra-
tor may require an appropriate mlodifiention in the method of selection
of the Code. Aut~horityS:
(2) THAT, the Aidministrsator shall forthw~ith appoint a commnis-
sion of nie consistig of an equal number of representatives of emz-
ployers and employees, with an impartial Chairman, which comnus-
sion shall undertake a study of competitive conditions within the
Ind~ustry with respect to labor costs, in order (1) to mrake receomends-
tions to the Administrator for the adoption of occupational classifica-
tions of wages so as to mlaintain fair competition between mliembers of
the IndustryT, and (2) to investigate the need for the emphiyment of
learners in the Inldust~ry and, based upon such investigation,.to make
recommendations for such modifications of Article IV, Section 6 of
thme Code as are necessary in order to effectuate the policies of the Act.
The labor members of this commission shall be nominated by the Labor
Advisory Board, of t~he Nat~ional Recovery Administration, and the
Industry members of this commission shall be selected by the Adminis-
trator; the impartial Chairman of this commission shall be nominated
by the Rtesearch and Planning Division of the National Recovery
Ad1minist ra t ion.
'1iThe recommendations of this commission shall be matde within
;thirty (370) days after t~he effective date of t~he Code and upon approval
by the Administrator, either in their original or modified form, after
such hearing and notice as he may specify, such recommendations
either in their original or modified form shall become a part of this
(3) TPHAT, pending the approval of such new Code provisions as
may be adopted as a result of the recommendations of t~he commis-
sion hereinabovFe referred to, no employer in the Industry shall reduce
the weekly wange rates of employees who are paid on a week-work
basis even t~houghrr such employees mlay be receiving more than the
minia provided in the Code ; nor shall any such employer pay t~o any
employee, who is paid on a piece wrork basis, rates which do not enable
such employee to earn at least as much per full working weeki as such
employee earned for t~he average working week during the month
immediately preceding the effective date of this C'ode.
(4) TPHAT, there shall be forthwit~h established an Industrial Rela-
tions Board which shall consist of an equal number of representatives
of employers and em~ployvees, and an impartial Chairman. Such
Chairman shall be appointed by the Admiinistrator in case said Board
within tenr day~s aftlter its election fails to select one by agreement. The
Labor representatives on saidl Industrial Board shall be appointed by
the Administrat~or upon the nomination of the Labor Advisory Board
of the Nationral Recovery Admnllistrat~ion. The representatives of
thme employers shall be selected byv the Administrator. Such Board
shall deal with cojmplaint.s and disputes relating to labor in accordance
w~ith such. rules andi regulations as have been, or may hereafter be
issued by the Adralinis:trator.
(5) THAT, on and after August 15, 1934, no watchman shall be
permitted to w~ork in excess of forty-eight (418) hours in any one week;
nor shall any '"non-ma nufac tu ring em ployee be permitted to work
in excess of ~forty (410) hours in any one w~eek, nor in excess of nine (9)
hour in any twventy-four (24) hour period; unless prior to said date
a public hearing is held by the Aldministrator at which good cause
is shown why the above provisions should not become effective and
I issue some order pertaining thereto.
Hnca S. JoHNSON,
Adin~nistrator for Ind~ustrial Recovery.
SoL A. ROSENBLATT,
The White H1Fouse.
SmR: This is a report of the H~earing on the Code of ]Fair Compe-
tition for the UIndergarm~ent and Negligee Industry conducted in
Was hinton onpSeptember 5, 1933 and of subsequent conferences held
forthepuroseofobtaining a Code of F~air Competition for the
Uidergarmaent and Negligee Indust~ry, under Title I of the National
Industrial Recovery Act.
DEFINITION OF TH[E INDUSTRY AND STATEMENT OF THE DEVELOP141ENT
OF THIE CODE
The Industry as defined in thze Code includes the manufacture and
sale; by the matlnufacturer, contractor, or jobber of ladies' underwear
and under-grarments, nreglgees and lounging pajamas from woven
fabrics, except that it does not include the manufacture of womzen~s
and children's sleeping garments or under-garments when such
garments, exclusive of triming, are mlade of one hundred (100%/)
per cent cotton fabric, nor does it include the manufacture of the
so-called athletic type of ladies' undergarments.
The Cod~e as originally submitted did niot exclude the manufacture
of underwear made from cotton fabrics. However, as work. onl the
Code progressed, it became the judgment of the preponderance of
thte manufacturers of the underwear who wvere makSing garments out
of cotton fabrics, that their interests were more in common withrr the
manufacturers included under the Cotton Garment Code than with
the manufacturers of ladies' un~derwriear m-ade fromt rayonl and silk.
These manufacturers, who formed an organization known as the
Association of Cotton Unldergarment and Sleeping Garment Manufatc-
turers, made application for such amendment to thie Cotton Garment
Code as was necessary to give this Code jurisdiction over the maanu-
facture of cotton sleeping wear and unzderg~arments. This amaenrd-
ment to the Cotton Garment Code was granted and became effective
on March. 22, 1934.
Although the close relationship between the manufactulre of negli-
gees and lounging pajamas and the manufacture of ladies' underwear
m~ade from rayon and si~lk as would seem to be indicated by the title
of this Code, may: not be generally recognized in the trades, the, rela-
tionshtip was deemed to be sufficiently close to make possible the group-
ing of the~ two Industries together under one Code of Fair Competi-
tion. T~he intimate relationship between the U~nder~gar~ment League,
I[nc., and its affiliate, the Negligee Mlanufacturers Association, Inc.,
together with. the, aidvntages to be obtained by a common adminis-
tration of both industries, can be given as the major reasons for the
combining of -the two Industries under the one Code.
REPORT T`O THIE: PRESIDENT
The diffculties which have been encountered in completing workr
on this Code are now well kinowfn in the apparel trades. To announce
the approval of this Code is not only to announce that the task of
writing codes for all branches of the apparel trades is, with one excep-
tion, completed-; it, is also to announce that one of the most disturbing
influences which has exist-ed in the: apparel trades in the last four
months has now been removed. There a~re several industries very
closely "related to this Industry, some of which have been operating
under a Code of Fair Competition for as long as five months. The
absence of a Code for the Undergarment and Negligee Industry has
workletd real hardship on these industries as well as on those members
of the U~ndergarment Indust~ry who have been actively operating for
many months to obtain an Undergarment. Code.
Thie Code as originally submiitted by the Undergarment League,
Inc., in August, 1933, wasn a simple one-pn~roiding in general for a
fortyj hour week and a. $13.00 basic minimum. The sponsorship of
this Code: was fairly complete and the Code would have been quickly
approved had it not been for t~he outbreak of a strike in the N~ew
Yorkr area which w~as terminated by the writing of collective agree-
mients writh Inbor.t These collective agreements raised t~he scale of
wages in, the New York area in sorne cases as much as fortyP percent
or m~ore and brought about a substantial reduction in working ours.
The consequent w-idening of these differentials in labor conditions
existing between the New~ York manufacturers and the out of town
members of the Industry, gavre rise to the desire on the part of the
members of the Industrys located in New York~ Cit~y, to write into the
Code such occupational classifications a~s were necessary in order to
restore, to some degree, the differentials existing prior to t~he st~rike.
Negotiations looking t~ownrd an agreement between t~he New York
and out of tow~n members of t~he Industry took place over a period
of more than four months. The Code as approved is based upon the
agreement finally reached as a result of these negotiations. AQlthough
t~he Code does not contain occupational classifications comparable to
those: included in many other apparel trades codes, the limited amount
of these classifications contained in the Code will tend to bring about
t~o some degree the restoration of the relative labor conditions eidsting
between the metropolitan and out of town manufacturers prior to
It can be stated t~ha~t all interests represented by t~he members of
th~e Indust~ry hav~e been unusulally well represented in the work on
this Code. At the final conference on this Code theret w-ere present
over thirty five members of the Industry w~hose plants are located
in as widelyS scat~tered cities sas New Y'ork, Bost.on and Chica~go. The
final draft of the C3ode has been submitted to some Los Angeles
members of the Industry aind has been comlment~ed upon favorably
by their repr~esen:.ative.
It is estimated th~at the number of emplloyees in the Industry in
1929 was approiimately- 27i,C000 and t~hat. the number of such employees
in the first half of 193:3 was approximately 20,000. No later figures
of employment, are available. How-ever, a survey of the entire
industry now being conducted by the Administration, will doubtless
reveal w\ith grrleat'r accuracy than ainy survey undertaken heretofore,
not onrly the numbllrer' of emnployees in the Indust~ry and the number
off machines in use in thle Indu.t~ry, but also the annual volume of
business and the geographical distribution of thte Industry. There
has been a striking and prolonged disagreement between the repre-
sentat.ives of thre sponsorig trade organizations on this last question.
This survey will, therefore, show to what degree, if any, the Code
Authority, selected in the manner provided m the Code is not in
fact truly representative of the Industry. In this connection, atten-
tionr is called to the thid paragraph of the Admrinistrator's Order
HisuMt OF THE CODE
Article I sets forth the purposes of the Code.
Article II sets forth the definition of the term~ "Industry ", and
defines certain other terms which occur in the context of the Code.
Article III provides for thze mlaxiu working hours of employees
in the Industry. A thirty-seven and one-half (37)(), hour maximum
work-week is provided for manufacturing employees, and a forty (40)
hour work week is provided for all other employees. Employees
engaged in an executive, supervisory-, or managerial capacity, and
receiving more than thirty-five ($35.00) dollars per weekr, and outside
salesmen, are exempted from the maximum hours provisions.
Provision is also made to limit the employment in the IndustryT to
one shift of employees. The! Administrator may, however, upon
showing of good cause grant certain exception to this provision as he
may deem necessary to effe~ctuat~e the purposes of the Act.
Article IV contains t~he minimum wage provisions. A -thirteen
($13.006) dollar per w-eekr basic minimum is provided for all employees
in the Industry. The basic minimum for operators employed in the
"Mhetropolit~an Area" is set at sixrteen and one-half ($16.50) dollars
per week of thirty-seven and one-half (37)() hours, while the basic
minimum for operators employed outside the Metropolitan Area is
set at fourteen ($14.00) dollars per wFPeek of thirty-seven and one-half
Provision is also made in this Article to prevent the reductions of
total wciages of employees on account of the reduction in working hours
required by the Code. Exception is also made to the minimumn wage
provisions to allow for the em~ployment of handicapped employees
att wages below the minimum under certain specified conditions, and
also to allow for the employment of apprentices at wages below th2e
minimum otherwise provided.
Article V eliminates child labor and provides that persons under
the age of eighteen (18) years shall not be employed at operations or
occupations which are hazardous inz nature or detrimental to health.
Contained in this ~Article are also the mlandatory provisions re-
quired by the Act, guaranteeing to employees the right to organize
and bargain collectivelg.
Adequate provision Is also made to insure that employees in the
Industry are formed of the labor provisions of the Code through the
posting by employers in the Industry of official copies of such Code
Pro visio ns.
Artice VI provides for thre estanblishlment of a Code Authority comz-
posed of representatives of the Industry, labor, and the Recovery
Administra tion. The responsibilities, powers and duties of the Code
Authority are also defined in this Article.
Article VII provides that all garments manufactured and distrib-
uted subject to the provisions of this Code shall bear an N.R.A. label to
symbolize to purchasers conditions under which such garments were
made. The Code Authority is given the exclusive right in the Indus-
try to issue and furnish labels to the members of the Industry.
Article VII~I defines certain practices as unfair methods of competi-
tion1, and prohibits their use. Among these practices defined as unfair
are the flowing; the giving of secret rebates; the use of misleading or
inaccurate advertising; the granting of discounts in excess of the
amount of 8-10 E.O.1\L; the shiipping of goods on consignment or
memorandum except under certain specified circumstances; the paying
directly or indirectly by any manufacturer to the Industry of the
advertising expenses of customers; the acceptance of merchandise for
credit or return except under certain conditions and for certain
Article IX: provides that t~he Code shall not be so applied as to per-
unt monopohies or monopohistic practices, or to chimmate or oppress
Article X provides for the method of modifying or amending the
Article XI is designed to clarify the jurisdiction of the Code.
.Art~icle XLII provides for the datt.e upon which the Code shall become
effec ti ve.
WAGES AND HOURS
It is estimated that the increase in employment due to the reduction
of hours by: this Clode will be fromt twelve percent to fifteen percent.
Except in isolated cases, t.he Clode will have no direct effect upon
wages amlong the metropolitan firms; out of town, where substandard
wages have existed, and where, in addition, firms, were not affected by
t~he general wage increase brought about, in Sept~ember of 1933 as a
result of collective bargaining, the Code will cause, it is generally
recognized, a fairly general increase in wages and, in scattered cases,
a sulbstan tia~l increase.
The Deputy Administrator in his final report to me on said C~ode
having found a~s herein set forth and on the basis of all the proceedings
in this matter:
I find that:
(a) Said Code is w~ell designed to promote the policies and purposes
of Title. I of the National Industrial Recovery Act, including remnoval
of obstructions to the free flow of interstate and foreign commerce
which tend to diminish thle amount thereof and will provide for the
general welfare byv promlot~ing the organization of industry for the
purpose of cooperative action among the trade groups, by inducing
and maintaining united action of labor and muanagemlent under
adequate governmental sanctions and supervisions, by eliminating
unfair competitive practice, by promoting the fullest possible utiliza-
tion of the present pr~odlution capacity of industries, by avoiding
undue restriction of production (except as may be temlporarilyv re-
quired), by increasing the consumption of industrial and agricultural
proditets thlroulgh incr~easing purchasing power, by reducing and
relieving u~nemployme:cnt, by imrprovingr standards of labor, and by
otherwise re-habilita ting Ind ustry.
(b) Said industry normally employs not more thanr 50,000 em-
ployees; and is not classified by me as a, major indust ry.
(c) The Code as approved complies in all respects with the pertinent
provisions of sa~id TIitle of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Sect~ion 7, and Subsec-
tion (b) of Section 10 thereof; and that the applicant associations
are industrial associations truly representatives of the aforesaid indus-
try; and that the said associations impose no inequitable restrictions
on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies or
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and wil not operate to discriminaate against them1.
(f) Those engaged in other steps of the economic process have not
been deprived of ~he! right to be heard prior to approval of said Code.
For these reasons the Code has been approved.
HUGHE S. JoBNSON,
APRIL 27, 1934.
CODE OF FAIR COMlPETITION FOR THE UNDERGARMENT
AND NEGLIGEE INDUSTRY
To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of Fair
Competition for the Undergarment and Negligee IndustryT, and shall
be the standard of fair competition for such industry and shall be
binding upon every member thereof.
The term "'Indulstry as used herein includes the manufacture and
sale. by the manufact urer, contractor or jobber, as such terms are here-
inafter defined, of Indies' underwear and undergarments, negligees,
and lounging pajamas fr~om woven fabrics; except that this term shall
not include the manufacture of women's and misses' pajamas, sleep-
ing wear, alnd underganrments of wvoven fabrics w~hen such garments,
e-c~lusaive of trimming, are mlade of 100% cotton fabrics, nor shall it
include the so-enlledl athletic ty-pe of Indies' undergarments.
2. Thle termr memberr of t~he Industry "! as used herein includes
any indiv-idual, partnership, association, corporation, or other person
engaged in the indulstry either as an emiployer or on his or its own
behalf, as manufacturer, contractor, or jobber.
3. The term "'employee as used herein includes any person how-
ever com~pensated engagSedl in the Industry, except a member of the
In durs try.
4. The term~ "'employer as used herein includes all those by whom
any such emlploee is compensated or emiployed.
5. The term "miuanufacturingg employee"' as used herein means one
engaged~c in out~ting, pressing, exainlnlg, machine orperating, hand-
sEw~ing, finishing, samp~le makng,;c or in any other hand or machine
6. The tecrmn "non-ml~anuflct~uring employee as used herein in-
cludes all other employees engaged in the Industry not included
w.ithlin the meaning of the terml manufacturingg employee."
7. The term ''manufacturer as used herein includes all those who
manufacture garments in the Indlustry from their ow~n material, in a
factory or establishment maintained and operated by them.
8. The termi jobber as used herein includes all those for whom
and/or under whose direction or orders garments in the Industry are
manufactured, in whole or in part, by contractors and/or other man-
ufacturers, arnd who act as wholesale distributors of such garments.
9. The term "iContractor" includes all those w~ho manufacture
garments in thle Industry fromt materials provided for them by manu-
fact~ure~rs, jobbers or oth~ers.
10. The terms "President.", "A-ct" and "Administrator", as used
herein, shall mean respectively the President of the United States,
Title I of the National Industrial Recovery Alct and the A~dmistrator
for Industrial Recovery. *,
11. The term "MIetropolitan Area" as used herein means the five
boroughs of Queens, Brooklyn, 1Bronx, Masnhat~tan and Richmond, in
the City of ~New Yorks.
ARTICLE IIEI: "-HOURS
1. No manufacturingng employee"~ shall be permitted to work: in
excess of t.hirty-seven and one-h'alf (374%) hours in any oerr wneeki nor
in excess of seven and one-hatlf (7%5) hours in any twienty-four hour
period, nor more than five (5) days in any one week, except as here-
2. There shatll be no more than one shift of emlploy-ees in any one
noic and hearings as he shall prescr~ibe may grant such exemption
to this provision as he mayT deem necessary to effectual te thie purposes
of the Act.
3. No "non-manufacturing employee" shall be permitted to work~
in exceess of forty (40) hours in any one (1) week, or in excess of nine (9)
hours in any fptwnty-four (24) hour period, except that such emlployees
may be permitted to work four (4) hours overtime per week, provided
they are compIensalted at their regular hourly rate for all hours worked
in excess of forty (40) hours in any one (1) week."
4. The provisions of ths Article. shall nzot apply to employees
engaged in an executive, supervisoryT, or managerial capacity and
receiving more thanl $35.00 dollars per weekr; nor to outside salesmren,
5. No employer shall kinowin~gly engage any employee for any time
which, when to~taled wit.h that already performed with another em-
ployer, or employers, in this Industry, exceeds the maximum per-
6., Any employer wrho does the work of a manufacturing em~rployee
shall be subject to the! provisions of thi Code as to hours of labor.
7. Subject to approval of the Admlinistrat~or, the Code A4uthority
mnay designate t~he hour before which w~ork shall not begin and the
hour after which wrorki shall cease and may determine in which local-
8te hsrl hl .. NEo overtime shll be permitted except upon~ recommendation
of the Code Aut.horitT and the approval of the Administ~rat~or, and
under such conditions and upon such terms as the Administrator shall
p resc ribDe.
ARTICLE ILV 2 -WAGES
1. NI\o "manufnet~uring employee" sha~ll be paid at less than thle
rate of thirteen ($13.00) dollars per week of thir~ty-seven aend one-half
(37'&) hours. No operattors empZloyed in factories located in the
"Mh~etropolit~an Airea" shall be paid at less than the rate of sixiteen anrd
one-balf (316.50) dollars per week of th~irt.y-seven and one-half (37!9)
ours, and, six (6) weeks alft.er the effective date hereof, no operators
employed in factories located outside of the "Mhetropolitan Area"'
shall be paid at less than the rate of fourteen ($14.00) dollars per week
of thirty-seven and one-half (371h) hour.
1 See paragraph 2 (5) of order app~roring this code.
r See paragrapihs 2 (2) and 2 (3) of order approving this Code.
2. N~o "~non-manlntufatring employee" shall be paid at less than
the rate of thirte'en (8F13.00) dollars per week of forty (40) hours.
3. This Article establishes a minimum rate of pay regardless of
whether an employee is compensated on a time ra.te, piece rate, or
4. No employee shall receive a lesser rate than is required to pro-
vide the same earnings for t~he hourly work weeki herein established as
was received for that class of work for the longer week prevailing
immediately prior to the date of approval of this Code; provided,
]howFever, that. this clause shall not be interpreted to require an increase
in rate to any employee in excess of 20%0. Nothing herein contained
shall relieve any employer from paying the other minimum wage rates
established in this Code.
5. A person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmlityS may be employed on
light w~ork atz a wage below t~he minimum established by this Code, if
the employer obtains from the SCtate authority, designated by the
United States Department of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall be
stated in this certificate. Such authority shall be guided by the
instructions of the United States Depart~ment of Labonr in issuring
certificates to such persons. Each employer shall file monthly with
the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximum hours worked by such
6. Learners employed in the "M~etropolitan A~rea" may be paid not
less than at the rate of $10.00 per week, provided that the number
of such learners shall not exceed 5%0 of the total number of employees
of any one employer. Learners employed outside the M~etropolitan
Arsea may be paid not less than at the rate of $9.00 per weeki pro-
vided that the number of such learners shall not exceed 10%o of the
total number of employees of any one employer. In no case shall
learners be employed as such, for a period in excess of ten (10) weeks,
when employed in the "M~etropolitan Alrea", nor in excess of twelve
(12) weeks when employed outside the "Mhetropolitan Area", irre-
spective of whether they are employed by one or more employers.3
7. Female employees performlinga substantially the same work as
male employees shall receive the same rate of pay as male employees.
8. All manufacturers and/or jobbers who cause their garmzents to
be made by contractors shall adhere to the payment of rates for such
production in an amount at least sufficient to enable the contractor
to pay employees the wages and earnings provided in this Code and
in addition a reasonable payment to contractors to cover overhead.
ARTICLE V--GENERAL LABOR PROVISIONS
1. No person under sixteen (16) years of age shall be employed in
the industry. No person under eighteen (18) years of age shall be
employed at operations or occupations which are hazardous in nature
or detrimental to health. The Code Authority shall submit to the
Administrator not later than sixty (60) days after the effective date
hereof, a list of such operations or occupations. In any State an
employer shall be deemed to have complied with this provision as to
*see paragraph 2 (2) of order approving this Code.
age if he shall have on file a certificate or permit duly issued by the
Authority in suchl St~at~e empowrered to issue emnployrment or age
certificates or permits showing that the employees are! of the required
2. (a) Employ~ees shall have the right to organize and bargain
collectively, through representatives of their own choosing, and
shall be free fromr the interference, restraint, or coercion of em-
ployers of latbor, of their agents, in the designation of such repre-
sent~at~ives or in self-organizat~ion or in other concer~t~ed a-ctivities for
the purpose of collective bargaining or other mutual aid or protection.
(b) No emnployee and no one! seeking employment shall be required
as a condition of emqployment to join any comppany union or to refrain
from !oinung, orgamzlng or asslstmg~ a labor orgaumzation of his own
(c) Employers shall comply within the maaximnum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President..
3. No emlployer shall reclassify- employees or duties of occupaltions
performed or engage in any other subterfuge so as to defeat the pur-
poses or provisions of the Act or of this Code.
4. No provisions in this Code shall supersede any law within any
State which imposes more str~ingrent requirnements onr employers as
to age of emnployees, wages, hours of work, or as to safety, health or
sanitary condiitio~ns or insurance, or fire protection, or general w-ork-
ing conditions, than are imnposed byT this Code.
5. Each member of the Indulstry shall be furnished by the Code
Authority with, official copies of thie prov-isions of this Code relating
to hours of labor, rates of pay, and other conditions of employment.
Such official copies of such provisions shall contain directions for
filing complaints of violations of sulch provisions, and shall be kep~t
conspicuously postedl at all times by such memb~ers of the Induslt~ry
inn each shop, establishment, or separate unit, to the extent necessary
to make them freely a.ccessible to all employees. Wl~henever an~y
modification of, or exemption or exception from this Code permits
any person to pay lower wages or work his employees longer hours,
or estabhlishes conditions of employment less favorable to his employees
than those prescribed by the provisions of this Code, the Code
Authrit, a th reuest of such person, shall furlnishl him with
cert~ified copies ofsuhmdictoseem iooreeponi
sufficient number for posting alIongr side of such official copies of
No mlember of the IndulstryS sharll display or furnish any incorrect
copies of such prov-isions, directions, modification, exemptions or
exucep tion .
6. No home worki shall be permitted bg members of this Industr~y.
7. ]Every employer shall provide for the safety and hlealthl of
employees during the hours and at their places of employment.
Standards of safety anrd health shall be submitted by the Code
AButhority to the Administratfor w~it~hin six nornths ofter thle effective
date of this Code.
8. No emnployee shall be dlismissed byp reason of makling complaint
or giving evidence writh respect to a vilolationr of the Act or of this
ARTICLE VI1 --RGANIZATION, POWERS AND DUTIES OF THE CODE
1. TIhere shall forthwclith ~be constituted a Code AuthorityT consisting
(a) Twelve (12) representatives of the Industryr or such other
members ats maLy be approved from time to time by the Administ~rator
to be selected as hereminfter provided.
(b) Tw;o (2) representatives whbo shall ha~ve the right to vote on all
questions affecting labor, compliance, and enforcement but who shall
not havPe thze righlt to vote on trade practice provisions or on the
employment or discharge of any officer, director, attorney or other
agency of the Code AulthorityF. Said representatives shall represent
the employees in tlhe Indlust~ry and shall be appointed by the Ad-
ministrator for Industrial Recovery upon the nomins t.ion of the Labor
Advisory Board of the National Recovery Administration. Such
representatives shall be given notice of and may sit at all meetings of
the Code Authority.
(c) Such aldditional members w-ithout vote not to exceed three (3)
as the Administrator mayir appoint to represent such groups or such
interests or such governmlental agencies and for such periods as he
2. Nine (9) of the members of the Code. Authority representing
the Industry shall be selected by the Undergalrment League, Inc.6
Three (3) of the mremnbers of t~he Code A-ut~horityS representing the
Industry shall be selected by the National Women's Undergarment
Manufacturers Ass'n. Inc.
3. Each trade or industrial association directly or indirectly
participating in the selection or a~ctivit.Ies of the Code Authority shall:
(1) Impose no inequitable restrictions on membership, a~nd (2)
submit to the Administrattor true copies of its atrt~icles of association,
by-law\s, regulations and any amendments when made thereto,
together with such other information as5 to membership, organization,
and activities as the Administrat~or may deem necessary to effect~uate
the purposes of this Act..
4. In order that the Code Authlority shall at all times be truly
representative of thae Industries and in other respects comply with the
provisions of the Act, t~he Admlinistrator may prescribe such hearings
as he may deem~ proper; and thereafter, if he shall find that t~he Code
Authority is not truly representative or does not in other respects
comrcply with the provisions of the Act, may require an appropriate
modifications in the method of selection of the Code Authority.
5. Nothing contained in this Code shall constitute t~he members of
the Code Aut~hority partners for any purpose. Nor shall any member
of the Code Authority be liable in any manner to anyone for any act
of any other member, officer, agent or employee of the Code Aluthority.
Nor shall any member of t~he C'ode Authorityg be liable to anyone for
any action or omission to act under the Code, except for his own
willful misfear.sance or nonfeasance,
6. If the Administrator shall determine that any action of the Code
Authority or any agency thereof mnay be unfair or unjust or contrary
to the public interest, the Administrator mayS require that such action
r See parnenrs P 2 (4) of order apoproving this Code.
* See paragraph 2 (1) of order approving this Code.
be suspended to afford an opportunity for investigation of the maerits
of such action' and further consideration by the Clode Aut~hority or
agency pending final action, which shall not be effective unless the
Administrator approves or unless hre shall fail to disaspprove after
thirty (30) days notice to him of intention to proceed- with such action
in its orignal or modified form.
7. In addition to the information required to be submitted to the
Code Authority as set forth in thijs article there shall. be furnished to
government agencies such statistical information as the Admlrinist~rator
may deemr necessary for the purposes recited in S~ection 3 (a) of the!
NVational Recovery Act. Nliothing herein continued shall relieve any
member of thris Industry from any responsibility to furnish reports to
other governmental agencies.
8. The Code Aut~hority shall have the following po~er~s and duties
to the exrtet permitted byv the! Act, subject to such rules and regula-
tions as may be prescribed by the Administra tor.
(a) To insure the exrecution of the provisions of this Code and to
provide for the comlpfiance by the members of the Inldustry wvith the
provisions of the Act.
(b) T Po adopt by-laws and rules and regulations for its procedure
and for the administration of the Code.
(c) To obtain through a confidential agencyF from members of the
Industry periodienl reports in such form and at such times with
respect to wages, hours of labor, conditions of em~Jploymrent, number of
employees, and such oh~er ~maftters pertinent to the purposes of this
Code as the Code Authority wTith the approvall of the Administrator,
mlay require for the administra tion and enforcement of this Code, and
to submit reports to the Adminstrator in such form and ait such times
as he may require in order that the Pre~sident many be informed as to
the observTance or non-observa~nce~ of the Code and to fulrther~ effectuate
the policies of the Ac t.
The confidential agency shall be in1 no way engaged in thle Industry
nor connected with any member thereof, andi all reports receivedt by
it shall be held as secret and confidential, except that they shall be
mlade available to the Adminiistraltolr.
Such agency shall analyze, dligest, and consolidalte such reports and
shall disclo-se only general findings based thereon. Suich general
findings shall be made; available to the Code Authority rand such
members of the Industry as have assecnt~ed to thi Code.
(d) To use such trade a.ssociat~ions And other agencies as it deems
proper for fthe~ ca rryvingr out of any of its activities provided for therein,
an to pay such agencies the cost thereof ; provided, that sulch agencies
shall at all times be subject to and comply with the Fpro i~ions of this
Code; and provided further that nothig he~rein. shiall relieve the Code
Authority of any of its duties and responsibilities thereunder.
(e) To coordinate the administration of this code w~ith such. other
codes, if any, as may be related to the Undergarment and- Negligee
Industry, or any subdivision thereof, with a view to promoting joint
and harmonious action upon matters of common interests.
(f) (1) It being found necessary to support the Administration of
this Code, in order to effectuate the policy of the Act and to maintain
the standards of fair competition established hereunder, the Code
Authority is authorized:
(a) T'o incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations
out of funds whch shall be held in trust for the purposes of the
Code and raised as hereinafter provided;
(b) To submit to the Administrator for his approval, subject
to suchr notice and opportunity to be heard as he may deem
1. An itemized budget of its estimated expenses for the fore-
going purposes, and
2. An equitable basis upon1 whch the funds necessary to sup-
port such budget shall be contributed by all members of the
Industry entitled to the! benefits accruing from the maintenance
of such standards, and th~e administration thereof;
(c) After such budget and basis of contribution have been
approved by the Administrator, to determine and collect equita-
ble contributions as above set forth, and to that end, if necessary,
to institute legal proceedings therefore in its own name.
(2) Each member of the industry shall be liable for his or its equi-
table contribution to the expenses of the maintenance of th~e Code
Authority as hereinabove provided. Only members of the industry
complying with the Code and making such contribution shall be enti-
tled to participate in the selection of the members of the Code Author-
ity or to receive the benefits of its voluntary activities or to make use
of any N.R.A. insignia.
(g) To cooperate with the Administrator in regulating the use of the
N.IR.A. insignia and the N.R.A. Label provided for in Article VII
(h) To establish or designate an agency on planning and fair prac-
tice which shall cooperate with the Code Authority in developing fair
inter and intra trade practices ancd industrial planning, including the
regularization of employment and stabilizationl of employees for the
(i) To initiate, consider, a~nd make recommendations for the modi-
~fication or amendment of this Code.
(j) To appoint a trade practice committee which shall meet wfith
"the trade practice committees appointed under such other codes as
may be! related to the Industry for the purpose of formulat.ing fair
trade practices to govern the relationships between production and
distribution employers under this code and under such others to the
enrd that such fair trade practices may be proposed to the Admin-
istrator as amendments to this code and such other codes.
All garments manufactured or distributed subject to provisions of
this Code shall bear an N.R.A. label to symbolize to purchasers of said
garmeneats the conditions under which they w~ere manufactured. Each
label shall bear a registration number especially assigned to -each
employer ly- the Code Au thorlrty anda remain a~ttached tco such garment;
whten sold to tfhe retail distributor. Any em~p'oypr may apply tp the
Code Authority for a per~mit'to use such N.R.A. iabel, but the employer
may use such label only if an~d so long as he complies with this Code.
The Code Authorityv subject to approval by the Administrator, shall
establish rules and regulations an~d appropriate machinery for t~he
issuance of labels and the inspection, exuaminat~ion and supervision of
the practices of emiployers using such labels ina observing the: provisions
of this Code for the purposes~ of ascert aining ther righ t.s of said employer
to the continued use of said labels; of insuring to each individual
employer that the syvmboism~ of said labesl will be mailnaineine by virtue
of compliance with the practices herein continued by all ot her em-
The charge mzade for such labels by the Code Authority shall at all
times be subject to supervision and orders of the Admzinist~rator and
shall be not more than an amount necessary to cover thae actual
reasonable cost thereof, inlcludinlg actual printig, distribution and
administration and supervision of the use thereof as hereinbefore
ARTICLE VIII--TRAD)E PRACTICE
The following practices constitute unfair methods of competition
for members of the. Industry and are prohiibited:
1. No member of the I~ndustry shall make secret payments or
alowances of rebat~es, refunds, exrtra-dating, commissions or unearned
discounts, whether in the form of money or otherwise for thze secret
extension to certain purchasers of special services or privileges
not. extended to all purchasers of thie same class on likre terms and
2. No member of the Industry- shall pub'lishl advertising whetherr
printed, radio, display, or of any other nature), which is misleading
or inaccurate in any material particular. N;Sor shall any member in
ny'C w~ay in tentionally- misrepresent. ~~ any god (incllludng, but without
limzit.ation, their use, trademark, grade, quality, quantity, origin, size,
substance, character, nature, finish, material content or preparation)
or credit ters, values, policies, se1rvice~s or thze nature or form of the~
3. NI~o member of the Industry shnall give ensh discounts in excess
of 8-10 E.O.1\L All merchandise shipped fromr the first (1st) of the
month to the twenty-fourth (24th) of the month inclusiv-e shall be
due andl payable on thze tent.h (10th7) of thie following month. Bills
for merchandise shipped on or after the. tenty-fifth (25th) of thle
month may be dated as of the first (1st) of the following month.
There shall be no additional dutingr.
4. No member of the Industry- shall publis advertising wlihich
refers inaccurately inz any material particular to any compIetitors or
their goods, prices, values, credit, terms, policies or services.
5. Nio member of the Industry shall publish or circulate unjustified
or unwarranted threa..ts of legal proceedings which tend to or have the
effect. of haraissing competitors or intimiidating their customners.
6. No member of the Industry shall ship goods on consignmlent,
except under conditions whichL may be approve-d by the Adminlistrator.
7. The C'ode Aulthor~ity, upon thec adoption of this Code, shall in-
vest~igate t-he prevailing terms and conditions under which products
of the Industry are shipped wit~h a viewv of making recommnendations
to the Administ~ratocr delSined. to regulla~te said t~ermls and co~nditions.
The Code Authiorit6y shall mazket such recolmrie~ndatlions within sixty
(60) days after the effective date hereof, and, upon approval by the
Admrinistra tor, such reconunendat ions either in their original or modi-
fled form, shall become a part of this Code.
8. No member of the Industry shall pay, directly or indirectly, the
advertismng expenses of anyv customer.
9. N memer o theIndutryshall accept for credit or exchange
returned merchandise, except frdfcsi auatrdlyi
delivery, errors in shipment or failures to conform to sqpecifications.
N~o returned merchandise shall be accepted for credit if returned after
ten (10) days from date of receipt by the customer, except on account
of defects in manufacture not diecoverable by reasonable inspection.
No member of this Industry shall accept for crediit or exchange worn
anad washed garmnent~s, except as hereinabove provided.
ARTICLE 1 --11NOPOLIES
This Code shatll not be construed or applied to promote! or permit
monopolies or monopolistic practices, or to eliminate or oppress small
ent~erprises, or to discriminate against them.
1. This Code and all thie provisions thereof are expresslymd
subject to the right of the President, in accordance with, thdepro-
visions of Sub-section (b) of Section 10 of the Nationall Industrial
Recovery Act, from time to time to cancel or :modify any order,
approva-sl, license, rule or regulation issued under Title I of said Act
and specifically but, without limlitation, to the right of the President
to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, maay be
modified on the basis of experience or changes in circumstances, such
modification to be based upon, application to the Administrator and
such notice of hearing as he shall specify, and to become effective
on approval by the Pre~sident.
ARTICLE XI--EFFECTIVE DATE
This Code shatll become effective upon the second Monday after its
Approved Code No. 408.
Registry No. 277-1-01.
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