NATIONAL RECOVERY' ADMINISTRATION
CODE OF FAIR COM~PETITION
THE HAND MACHINE EMBROIDERY,
AND THE EMBROIDERYZ THREAD
AND SCALLOP CUTTING
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cenia
Approved Code No. 256
Registry No. 231--1-05
AS APPROVED ON FEBRUARY 2, 1934
WE DO DUR PA~RT
.... o-` i
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Approved Code No. 256
COD)E: OF FA1IR COMPETITION
SC~HIFFLI, THE HAND MIACHINVE EMBROIDERY,
AND THEI[E IEIMBROIDERYT THREADI~ AND SCALLOP
As Approved on February 2, 1934
APPROVING CODE O~F FAIR COMPETITION FOR THE SCHIFFL, THE HAND
MACHINE EMIBROIDERYT, AND) TE E~MBROIDE~RY THEAD ALND SCBU)r
An application having been duly made pursuant to and in full
compliance with'the provisional of TCitle I: of thae National Indus-
trial 1Recovery Act, ap~proved June 16, 1933, for approval of a Code
of F~air Competition for the Schi-ffi, the Hand Machine Embroidery,
and the Embrloidery Thread and Scallop Cutting Industries, and
hearngshaving beecn duly held thereon and the annexed report onl
said Codge, containing findings with respect thereto, having beenl
made and directed to the President :
NOWr, THEREFOIRE, on behalf of the P~resident of the Unit~ed
States, I, H~ugh S. Johnson, Aidministrator for Industrial Recovery,
pursuant to authority vested in me _by Executive Orders of the Presi-
dent, including Executive Order No. 6543--A, dated December 30,
1933, and otherwise, do hereby incorporate by reference said an-
nexred report and do find that said Code complies in all respects with
theperinet poviion an wil remote the policyT and purposes
of said Title of said Act, and do hrb re htsi oeo
Fair Competition be and it is hereby approved.
HUGcH S. JoHNSON,
Administratfor for Industrial Recovery,.
A. D. WIHI'lSIDE,
Division Adm11lin i~strator.
February a, 1939.
REPORT TCO THIE PRESIDENT
The Wh~lite Hiouse.
SIR : The Code for the Schriffli and H1Eand Machine Em~broideryr
Industry relates to the manufacture of embroidery and aetz lace
onl Schil~li machines, and to the emblroidery on ha-ndk~erchie~fs and
so-en;lledc "' long goods ~" on hand-operated machines. The industry,
as defined by thre Code, also includes establishments engagerd in em-
broidecry thread cutting and scallop cutting for Schiffi ~and Hand
Machine Embroidery companies.
One code for this industry was submitted jointly by the Embroid-
ery Mafnuflclt~rerls Protective Association, I~lrepresenting approxi-
mately eighty-five percent (85Sl) of the Schif~fli machines, and by
the Hand M/achine Embroidery Association, Incorporated, repre-
sentative of approximately sixty percent (60%) of the Hand Ma-
chine Industry, and the Co-operative Embroidery Thnread and Scallop
Cutters' Association representing ninety percent (90%0) of the
embroidery thread and scallop cutting industry. This proposed code
of fair competition was pres~entet d to the Admrinistrator by the two
associations on August 22, 1933, was revised and resubl-mittedl, and a
hearing on the revised code was held on September 11, 1933. The
Code? was further revised in conferences held siubsequ~ent to the hear-
ing, and is h~~lereit~h reconulnendedl for executive approval.
The Code of Fair Competition for the Schitftli and Hand Machine
Embroidery Industry may be summarized as follows:
A.rt!cle I states the general purpose of the Code.
Article II defines the industry, together with certain terms used in
thle Code, and indicates the several classifications under various
divisions of the industry.
Article III specifies the minimum wages to be paid in each branch
of the industry.
article IV, Sectionz 1, Howrs, designrates the maximum hours of
work for employees.
Section 9, Hlome WC;ork, abolishes home work within. six; (6) months
of the effecti-ve date of the Code.
SCcticon 3, Etretch-out S~ystem, empowcers the Code Authority with
the representatives of Inbor to determine an applicable definition of
"' stretch-out within three (3) months, to the end of abolishing this
Section, 4, Usmemployment Insur;!lance, provides for the future pro-
vision of ullcnemploymen t insurance to all persons normally employed
by the industry in productive operations.
Section 5, Ohild La~bor, pro0hibits the employment of any person
under sixteen (16) years of age.
Sectf;ion 6, Iighits of Lazbor, quotes the mandatory provisions of
Sec-t ion 7 (a) of the National Industrial Recovery3 Act.
Section. 7, Rteelandsifcationt of Employees, prohibits reclassification
of employees or their duties for the purpose of defeating either the
Act or the Code.
Section. 8, Standacrds for Safety anfd H~ealth, requires that the Code
Authority shall submit standards for saety and health. to the A1d-
mlinistrator within sixr (6) months after tlhe effective date of the
Seotiont 9, Statfe L;ats, specifies that no provision in the Code
shall supersede any Statte law imp-osinga more stringent requirements
on employers, with respect to age of e~mployees, wnages, hours of
Section. _10, Labor Clontrlacts, fixes the~ limits wPithin whichT agree-
mlents between employers and employees may be madie.
8Sectionl 11, Posting, guarantees the acce~ssibility of certain p~rc-vi-
sions of the Code to employees.
Sectionl 1, Employment by Sever~al Employers, limits the numn-
ber of hours of wcork of an employTee e~ngsaged by several employ ers.
Article VC sets up a Code Authority and outlines certain of its
duties and functions.
Article 'VI enumerates trade-practice rules.
Article VTII allows for arbitration in case of differences, com~-
plaints or controversies.
Article 'VIII quotes the provisions of Section 10 (b) of the Act in.
respect of amendments or additions to the Code.
Arrtile ~IX provides thnat the Code may not be used to promote
monopolies, permit unfair trade practices, or discriminate against
Article XP advises against excessive price increases.
Article XI establishes an effective date for the Code.
NATURE OF THE INDUSTRY
The Schiffli Embr~oidery Industry is localized to a large extent in
Newf Jersey where about seventy percent (70%6) of Schifftli lace and
embroidery is manufactured. New York is also an important pro-
dueing area. In. the hand-machine section of thle industry, New
York is the leading State and produces over eighty percent (80%) of
the total out~put.
IMost of the factories in this industry are small. Nearly forty per-
cent (40%0) of the establishments employ five (5) wage earners or
less, while seventyr percent (704%) are operated with less than twrenty
one (21) workers. For tthe year 1929, the largest plant in th
industry employ~ed less than twco hundred fifty (250) workers.
The activity of the embroidery industry is highly seasonal in
nature. In many of the shops, owners of the equipment. are also
operators. In addition, home-wvork operations have long prevailed
within this industry. While it is difficult to estimate thle extent of
this home work, competent; authorities have testified thant this prnc-
tice is confined largely to non-machine work. Itf has presented a
significant amount of the total production activities of the inldustry..
The value of the combined production of Schiffli and hand ma-
chin~e embroidery in 1990) was nearlfy nineteen million dollars ($1t9,-
000,000), although by 1931 this value had declined to about sixteen
million dollars ($16j,000,000). 7~The Schiffli industry was responsible
for about two-t.hirds (%3) of the total value of production of the
industry in 1931, and employed a large majority of the workers in.
the industry. To enga~g(e in the .manufnet.ure of Schi~ffi emubroidery9
necessities invesctmentl mn relatively expensive equipment. Onre fifteen
(15) yard Schiffli emnbroide~ry machine. I~rpresenlts an investment of
ap~prlxima;~tely sixh-enl thousand dollars ($16,000). In the industry
there are about one thousand one hundre~td (1,100) Schiffli embroidery
lln-hlinel's loctedl in about five hundred (500) estab~lishmenlts. T1Che
plants havl\e become of a smaller scale nature within recent years
as is evidenced by the fact that about five (5) years ago, about two
hundred fifty (250) manufacturers op~eranted a total of one thousand
five hundred ( 1,500) Schi~ffili machines. ~The present units of the
industry are small, and the com~petItion in the industry has been
sevr\te. It should be borne in mind that the embroidery industry
serves as dress trimmings to a large extent and is thus subject to
the competition that comes from many competing products. Em-
broidery lace (aetz) likewise must compete. directly with Leavers
lace. The hand machine industry is also small scale in. nature, and
competes principally with shipments of embroideries from foreign
countries and from Puerto Rico.
THE IND)USTRIAL BRANCHES INCLUDED IN THIS CODE3
Originally nine (9) codes were presented for this industryI by
various interested groups, despite the fact that it is a small industry
employing less than four thousand (4,000) workers in 1929, and
approximately three thousand three hundred (3,300) workers in
1931. Of the total employees, nearly three thousand (3,000) were
employed in the Schi~ffi section in 1929 and over two thousand seven
hundred (2,700) in 1931. A successful effort wvas made to unite these
various branches of the industry under one code. These branches
include the manufacture of Schi~ffi embroidered lace (aetz) and
Schiffli embroidery, hanzd-machine embroidery of handkerchiefs,
hand-machine embroidery of long goods and novelties (sold mainly
to the cutting-up trades), the design of Schiffli emnbroidery '; o~and a
number of establishments engaged in embroidery thzread ansclo
cutting. This section of the industry employs but a few hundred
workers and it was deemed desirable to make provisions for it in a
general code for the entire industry.
The combination of these various branches under one code was
deemned essential because of the relatively small size of each, section
of the industry as wPell as of the industry as a whole.
Article III of the Code provides minimum wages for each of the
va rious branches of the industry. In the Schif~i branch no less
thnan a, rate of thirtyV-sev~en and a half cents (37%~!c) per hour is to
be paid to any employee engaged in manual or machine process, while
other employees are to receive not less than the rate of thirty-five
cents (35$;) per hour.
I~n the discussions following thle hearing on this code, it was gen-
erally agreed that some minimum wage provision should be made
for employees in the Schiffli industry abov-e thte ranki of unskilledl
workers. Various minimum hourly rates were proposed for an
occupational classification of employees in the industry. When it
aIppear~ed impossible to secure a meeting of minds on the level of
these rates, it wras agrreed that a minimum scale of hiourl~y wag~es for
occupations above: the least skiilled should be set by the Code Author-
ity) upon approval by th~e Admini~strator within four (4) weeks after
the ~f~ective date of the Code. The basis of determliningr these rates
shall be an necountant's report on the wages paid in, 192F9, but in
any case, the minimulm scale of wnges shall not be less than the
minimum wages set forth in the code.
The Schiffli industry employs dlesigrners in its own shops and in
addition has skectches mlade by designers who operate their own
studios and who employ fellowcP designers. It wpas found to be im-
practical to establish rates of wages for studio work, but it was
agrreed that those designers employed with-in Schiftli factories should
be paidl at the rate of not less than one dollar ($1.00) per hour for
a forty (40) hour work w-eek.
Article III estanblishles, also, a minimum rate of forty cents(4)
per hour' for employees engaged in manual or machine processe~s mn
the Hand Mrachine industry, with the exception that a thirty- cenot
(30 ) rate is provided for learners for the first six (6) weeks of their
training. It is provided that no other employee shall be paid less
than at th~e rate of thirty-five cents (354F) per hour.
For the Embroidery Thread and Scallop Cutting IndustrT, a mini-
mum rate of thirty-five cents (35CC) per hour is established for emn-
ployees engaged in the manual or machine proce-sses, with thze exscep
tion that a thirty cent (300) rate is provided for learners forth
first six: (6) weeks.
Substandards (limited to ten percent (10%J) ~of total emn-
ployees) may be emnployed on light work: below the minimum wage,
provided that such employees are paid at least eighty percent (80%0)
of the minimum.
It is provided that the problem, of apprentices in thze indlustr~ies
shall be studied by the Codes Authority and recommendations made,
within thirty (30) days, to the Admmnistrator, which, upon his ap-
proval, after due, notice of hearing if he deems this necessary, shall
become binding provisions of this Code.
On and after the effective date of this Code, all prodluctive em~-
ployees in the industry shall workr not in. excess of forty (410) hlour~s
per week and buit one shift per wFeek of plant operation shall be per-
mitted. The hours of work are specified byV theF agreement and ~or~k
is to be confined to the days froml hllonday to 1Fridlay, inclusive.
The average full-time hours per wPeekz previously operated by this
industry were probably close to forty-eight (48). ITn 1929, approxi-
mately thirty-two percent (32S%) of the workers were employed fr~om
forty-one (41) to forty-four (44 hours. Twfenty-five percent (2i5C)
were scheduled to work from forty-five (45) to forty-eight (48s)
hours per wmeekr while the weekly hours of thirt.y-thr~ee percent (33%J)
of the workers ranged from, forty-mine (49) to fifty-four (54) hours
perCL week. It has been estimated that a reduction. of ]hours from
forty-eight (48) to forty (4-0) as proposed by the Code will result in
an inlcrlease1 of twenty percent (20%0) in the number of wPorkers em-
ployed by the industry. Thle extent of employment will also be in-
creased, itis anticipated, by the Code provision that home work is
to be eliminated. There is no means of determining accurately t~he
hours of work that ha~ve prevailed in. home work. In view ofi the
fact that under the Code provisions much of the workr formerly
done in, the homes will be done in the factory with a regulation of
hours of work, it appear:"s to be evident that the forty (40) hour
week~l in this ind7uctry3 will result in a significant increase in persons
By the terms of _Article IV, Section 2, it is provided that wPithin
three (3) months11~ of the effective date, all home work shall be abol-
ished. It has previously been stated that the elimination of home
work in the industry will result in an increase in the numbers of
workers employed in factory operations. This procedure seems essen-
tial in order to guarantee that the minimrum wage and mlaximum~
hours provisions will be controlled and regulated. The allowance
of three (3) months for the elimination of home work is believed to
be sufficient time for the adjustment of the home workers and to
allow for employers to obtain additional factory space for the in-
creased operations that will result from thle elimination of home
lrtc VA C~ode AQuth~ority is constituted for the industrybythe terms of
Arice .It is provided that the Amntrorslldesignate!
the members of the Code Authority to represent the industries.
This arrangement for setting up a Code Authority seems, at ~first
glance, to be unusual. However, it was due to a factional dlisag-ree-
ment that occurred after work upon the Code developed into a long
series of unpleasant incidents. These separated further thle factions
and at one time seriously threatened the production of any Code.
Many of the difficulties were overcome, but on the question of the
Code Aiuthorit~y, after a long effort on the part of the Assistant
Deputy to secure an agreement, it was proposed to thle Industry that
the Administrator be empowered to designate the Code Authority.
Thiis wTpas agreed upon.
Article V further designates a number of duties and responsibilities
for the Code Authority. One of the most important is the specifica-
tion that a service bureau shall be set up for the purpose of supervis-
ing credits in the industry. Testimony brought out at the hearing on
this Code showed that effective credit checking was most important
in view of the small size of the manufacturing establishments in the
indlustry.g As a mercansi of placing the industry on a basis of fair
competition, the Code Aulthor~ity is authorized to take! such steps as
it may deem, advisable to facihitate and expedite, scrutiny of order
prices and trade prIactices.
In the original code that was submittedl for this industry, it wPas
provided that no manufacturer of Schiffli embroidery should be
permitted to sell to emibroid~ery jobbers or deanlers who had not
entered contract ual relat ionsh ip with thre Embroidtery ManuIfalc.t urer1s
Protective Asslciatio~n. It was rmainltained that this clause was
necessary in order effectively- to mnilinimze? credit losses. This clause,
however, was p~rotestedl by the Embroidery Merch~lant s Association as
wRell as by the E~mbroidery Manufactuxrers Protective Allianlce.
Inm substitution of this clause, Article V, Section 9, subs~cctio~n (j)
hzas been inserted in the Code upon~ appovl"\`' of all intere ledl parties.
This sectionl makes it ob~ligaztory on all members of the indlstry,
except members of the Embr-oidery and Scallop Cutting Industry, to
specify certain factual information with r~espect to orders on each
sales contract or order blank. I~t is believed~ that the Ino\isio. n of
this information will act toward the elimination of credit losses andt
unfair trade practices.
1. Unemlplollment Insurance.--The manufacturers and labor rep-
:resentatives in this industry have recognized the desirability of
providing an unemployment insurance plan for the industries covered
by this Clode. Article IVT, fourth section of the Code, provides that
th~e Code Authority shall take steps to set up the necessary machinery
for providing unemployment inlSuranIce to all persons normally
employed in productive operations by the industry.
2. Child Labor.-A~rticle IV, Section 5, provides that no p~ersonl
in the industry shall employ any worker under the age of sixteen
(16) years, provided, however, that where a, State lawc requires a
hger minimum age for employment, no person b~elowc the age
specified by such a SCtate law shall b~e employed by any mannufac~turer
in this industry.
3. Design piracy.-The copying of designs hnas constituted a major
problem ~for this industry. In order to protect original designs
and to prevent unintentional copying of designs, the Code Authority
has been author~ized by Article V, Section 9, Subsection (n), to set
up a D~esiign Rtegistration Service and to adopt such rules and reg-
ulat~ions as may- be necessary to enforce the prevention of designI
piracy. This provision is of the utmost significance to the dlesigners.i
in thne indlustrya and it is significant that each factor in the industry
has been zealous inr ulrging~ the adoption of such a clause.
The Deputy Administrator in his final report to me on said Code
hainlg found as hlerein set forth and on the basis of all the pro~cceed-
ings in this matter;
I findl that: (a) Said Code is well detsig~ned to promote the policies
andc purposes of Title I of the Nationali Industrial Recovery$ ~Act,
including remnoval of obsjtruct~ions to the free flow of interstate andl
foreign commerce which tend to dliminishl the amount thereof and
will provide for the general w~elfre~ by p~romoting the organization
of industry for the purp~ose of cooperative action among the trade
groups, by inducing and maiintaining united action of labor and
mlanagemetnt, undcer adteqate governmental sanctions and supervi-
sion, by eliminating unfair compensation practices, by promoting the
fullest possible utilization of the present pr~oductive capacity of in-
dustries, by avo~idingg undue restr~ictio-n of p~rodluction (except. as may
be temporarily requirlled), by increasing the consumpltion of indus-
trial and ag rIicultura~l products through increa~sing pucaIngpoer
by r~educingr and relieving unemlployment, by improving standards of
labor, and by oltherwise; reC.1:habli~tating industry.
(b) Said Industry normai~lly employs not more than 50~,000 em-
ployeg~q; and is not declassified by me as a major industry.,
(c) TIhe Code as app~oved complies in all respects with the per~ti-
nent provisio~ns of said Title of said Act, including without, limitation
Substc~tion (a) of Section 3, Subsecrtion (a) of Section 7, and Subsec-
tion. (b) of Section 10 thereof ; and that the applicant association
is an industrial association truly- representative of the aforesaid In-
dustry; and that said association imposes no inequlitable restrictions
on admnission to mem~llbership therein.
(d) The Code is not designed to and will not permit monopolies
or maonopolistic practices;.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of th~e economic process have not
been deprived of the right to be heard prior to. approval of -said Code.
For these reasons, the Code has been approv-ed.
HUGHB S. JOHNSON,
FEBRUnARY 2, 1934.
CODE OFi F'AIR COMPETITION FOR, THE SCH-IFFLI, TH)IE
H-ANTD 10AC'HINE EMIBROIDER Y~ _AND THEi EMB~I3ROID)-
1ERYtli THE-READI ANDTTI SCALOP CUTTING INDUSTRIESK13=
To effect the policy of TIitle I of the National Inrdlt rial Recovery
Act, the following provisions are established as a Code of Fiair
Competition for the Schiffli, the Hand Machnine Emlbroidery, and( thie
Embroider~y ThreaHd and Scallop Cuttingr Indu~stries, and shall be
the standard of Fair Competition for these industries, and shall b~e
binding upon ev-erya membller thereof.
AlRTICLE 11- DEFINITIONS
(a) Schiffli 'Indust ry asi used herein m~ean th mnanufa~ture, of emb-
broideryy andl laces on a Schiffli muachine. (Schifti is a Swviss term
literally mneaningr little boat and describes the shape ofi t~he shut-
tles of a multip~le-needle-and-shuttle embroidery machine.)
Manufacturers in thet Schifii Embroidtery Ilndustry are dlivilled
into three classifications, as follows:
1. Those whzo manufacture for and sell mainly to the '" entting~-
up trades, or to retail establishments. (Known in thte trade as
"' Direct M~anufacturers."')
2. Those wnho maanufacture for and sell mainly to emlbr~oider~y mrer-
chants, jobber~s, dealers, and middlemen.
3. Those who manufacture and sell embrlroidery mnade on a sur-
face of material which is limited in area of dlesign to the dlimensions
of a "' frame "' attachment set into, a Schifftli mnachie, as disitinguish~led
fromt long goods which are emnbr~oider~ed across the full length
ofl a machine.
(b) Handl-Machine Industry as used herein includes mnanufac-
ture! onl hand-operated matchlin~es which do not rIequirlle shuttles.
Mianufactulrrer in the Hand-Ma~chine Eimbroier~y Indu.-stry are di-
vided into two classifications as follows:
1. Those who emrnoider handkerlchieffs exclusively, and sell exr-
clusiv9ely to the hlandkerchief mlanufafctu~inlg industry.,
2. Those who emb~roider "L long-goods ", fr~ame-gools~ "',:ll and no-
elties, and2 sell direct to the cutt~ing-up trades andc to emlbroidery
mierchanits, jobbers, dealers, andc' middllemuenl.
(c) Embroide~ry Threadni and Scallop Cuttinga Industry shall
include establishments engaged in the bus~iness- of conltr~ac~ting to
do embroidler~y th~re~adi plitting by manchiner~y and/or by hland, em-
broideryS thre~ad cutting by mnachiner~y and/or by hland, scallop cut-
tingr by machinery and/or by hand, lace cutting byr mazchinery and,/or
'by handc, Ince making-up by" machinery and or by hlanc, the mlakinrJ-
up of embroidered yard goods by ma1chine~y and/or by hanLld, the
cutting-out of embroidery by exclusive hand process, and the straight
cutting of embroidery by machinery and/or by hand.
(d) Embroidery means all products which are or which can be
prodnleed on a Schiffli and/or H~and Machnine. It includes Schifflli
or Burnt-out laces, and/or processing thereof.
(e) Jobber, D~ealer, andl/or Middleman refers to a person
or firmu ordecr~ing( or purchasing embroidery for resale to the cutting-
up trades or to retailingr establishments, wC1hich person or firm is
not the owner or lessee-operator of a Schiffli and/or ]Hand Machine.
(f) Memnber of the Indlustry incl-udes anyone engaged in the
indutr~~ies as above defined, either as an employer or on his own
(g) Mlanufacturer is the owner or lessee-operator of a Schi~ffli
or H-and Machine.
(hn) Tlhe term Employee as used herein includes anyone en-
goedl in the industries, however compensated, except a member of
(i) The term Employer as used herein means any employer
engaged in the industries.
(j) T~he terms President ", "Act ", and "Administrator ", as used
herein, mean respectively thne President of the U~nited States, Title
I of the National Industrial RecoveryT Act, and thne A~dministrator
for Industrial Reco~very9.
AerCLE 111-M nIMUMn WAGES
1. (a) No employee engaged in. manual or machine processes in
thne Schniffi Inldustry shall be paid less than at the rate of thirty-seven
and a half cents (371/24) per hour. No other employee shall be paid
less than at the rate of thirty-five cents (35$) per hour.
(b) No employee engaged in manual or machine processes in their
Hand Machine Industry' shall be paid less than at the rate of forty
cents (40 ) per hour, except learners whno shall be paid at the rate
of thnirty cents (304) per hour for the first sixr (6) w~eeks. NI;o other
employee shall be paid less than at the rate of thiirty-five cents (35e)
(c) No employee engaged in manual or machine processes in the
Embroidery Thread and Scallop Cutting Industry shall be paid less
than at the rate of thirty-five cents (35$) per hour, except learners
who shall not be paid less than at the rate of thirty cents (30d) per
hour for thne first six (6) weeks.
(d) The Code Authority shall, with the approval of the Ald~min-
istrator, designate Certified Public ~Accountanlts, who shall investi-
gate and report, within four (4) weeks after thte effective date of this
Code, thne wage rates, by occupation, that prevailed in 1929 in the
Schi~ffi Industry, the Hand Machine Industry and the Embroidery
Thread and Scallop Cutting Ilndustry. TPhe minimum. scale of wages
and sectional adjustments thereof for these industries shall not be
less than the 1929 wage rate as determined above, nor less t~han the
minimum wages set forth in this A~rticle. Upon recommendation of
the Code Atuthority and approval of the Administrator, after such
notice and hearing as hne mnay specify, the aforesaid minimum scale
of w~ages and sectional adjustments shall become binding upon all
members of the industries as effective provisions of this Code. Pend-
igthe approval by the Administrralor of t~he report of the Code
Authority as albovre provided, no employee engaged in manual or
machine processes in the Chicago area of the SchifflEi Indlustry shall
be paid le~ss t~han at the rate~ of thirtyS-two and a half cents (1321,4)
(e) Employ~ed designers in the Schiffi Industry shall be paidt at
the rate o~f not less than onle dollar ($1.00) per hour for a forty
(40) hour week.
2. Nonle of thie provisions of this Article shall be construed2 or
applied in sulch mlaner that the minimum wagers provided herein
become maximum wages, and the duties delegated to the Code A~u-
thiority shall incude a report with respect to the question ofE
wheter the minimum wages provided herein are in falct tending
to become maximum wages.
3. A person whose earning capacity is limited because of phlysical
or mlental handlicap, may be emnplolyed on light work at a wcage below
the minimum established byr this Code; prov-ided, that no such ex;-
cepte~d emnployfee shall be paid less than eighty percent (80%0) 'of the
minimum wage, and that the total number of such excepted employ-
ees shall not exceed, when added to the total number of learners,
more than ten. percent (10%S~) of the total number of employees
4. Th~'e problem of apprentices in the industries shall be studied
by the Code Aut~horityt~, and recommendations shall be made within
thirty (30) days to teAdministrator, which upon his approval,
after such notice and hearing as h~e mzay specify, shall become
bind-ing provisions of this Code-.
5. A guaranteed minimum rate of pay is established regardlless
of whether t'he employee is compensated on the basis of a time rate
or a piecework: or other basis.
6. Employers shall not reduce wages at present above the minimum
wages heremn provided, not.withlstanding that thre hours of emnploy-
ment are decreased by reason of the operation. of this Code, but all
wages above that shall be~ equitably :readljusted.
1. Hours;--(a) No employee shall be permitted to wforkr in excess
of forty (40) hours in an one weekr or eight (8) hours in anly
twenty-four (24) hour period, except as herein otherwise p~roviledl.
A normal work day shall not exceed eight (8) hours; the hours of
work: shaUl be from 8: 00 A.M. to 12: 00 o'clock noon, and fromn
1:00 P.M.IE to 5:00 P.M1. from M~onday to Friday, inclusive, except
that the Code Authlority, subject to the approval of the Adminl-
istrator, mnay, upon proper showiing, allow sectional members of thle
industries to operate at oter than th daily standard hours herein
provided. Neither overtime, nor alloance of extra hours for tie
lost for any reason whatever, shall be permitted. N~ot mnore~ thanl onle
shift shall be permitted.
(b) TIhe maximum hours fixedl in the foregaoing section shall not
apply to office andl supervisory staffs who receive more than thirty-
five dollars ($35.00) per week, nor to watchmen and out.sidle sales
for~lcs. Chauffers in the 1Embroidery T1hrend and Scallop Cultting
Industry shall not be permlittedl to work in excess of forty-five
(45) hours in any one week or nine (9) hours in any one day.
Waltchmencl shall not be permitted to work in excess of ftifty-six
(56) hours in any one week with. one day of rest in seven (7).
(c) Any member of the industries who does the work of a pro-
duzctive employee shall be subject to the provisions of hours of labor
of this Code.
2. H~om~e Worki.--After six (6) months from the effective~ date
of this Code no member of thne industry shall give out work to be
done in homes. Prior to that date, the Code Authority shall gather
inects regarding the operation of home ~work in the industries under
this Code and shall makre recommendations to thne Administrajtor,
who, after due hearing, shall determine whether the above prohibi-
tion shall be modified, cancelled or continued.
3. Etretch-Owt System.-TPhe industries under this Code go onl
record as recognizing the stretch-out system as an evil that must be
abolished, and to that end the Code Authorityg with the representa-
tive of labor shall within three (3) months after the effective date
of this Code, work out a satisfactory definition. of stretch-out as
applicable to th-e industries under the Code, which upon. approval by
the A~dministrator shall become a binding provision of tlhe Code.
Pending this recommendation, no member of the industries shall
require any employee to tend a greater number of machines than. such
employee or such class of employees customarily tended in such plant
in the weekr of July 1, 1983.
4. Unemployfmenzt InsuraLce.-The Code! Authority shall inv~es-
tigate methods for making available unemployment insurance to
all persons normally employed in production in the industries
covered by this Code, and make recommendations to the Adminis-
trator which upon his approval, after such notice and hearing as he
may specify, shall become a part of this Code.
5. Child Labor.--No members of the industries covered by this
Code shall employ any person under the age~ of sixteen (16) years.
6. Rights of Labor.--(a). Employees shall have the right to or-
gamize and bargain collectively through representatives of their
own choosing, and shall be free from the interference, restraint, or
coercion of employers of labor, or their agents, in the designation
of such representatives or in self-organization or in othe-r concerted
activities for the purpose of collective bargaining or other mutual
aid or protection.
(b) No employee and no one seeking employment shall be re-
quired as a condition of employment to 3oin any company union or
to refrain from joining, organizing, or assisting a labor organization
of hlis o~wn choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum, rates of pay, and other conditions of employment,
approved or prescribed by the Presidenrt.
.Reclass~ifi~cation, of Emplioyees.-No employer shall reclassify
employees or duties of occu~pations performed for the purpose of
defeating the provisions of the Act or of this Code.
8. Staxndacrds for ~Safety a~nd Heazlth.--Every emp~loyer shall pro-
vide for the safety anrd health of his employees at the place, and
during the hours of their employment. Standards for safety and
health shall be submlit ted by the Cole~ Authnorit~y to the Adm~inistratorr
within six (6) months after th~e effective date of this Codle. and
upon hIs approval, after, such notice and hearing as: he may -pec~ify,
shall become a part of this Colde.
9. S;ftate Lnte.-No p~rov.isionl in this Code shall sulpersedt e anly
lawv within any State which imnpoles mnore, stringent Irequiremllents onl
emplloye-rs as to age of emplroy~ees, wages, hours of wor1k, or as to
safety, health, or saniitary conditions, or insurance, or fire protcction,
or general working conditions, than are imlposeld by this Cod'e.
10. Larbo Co~ntracts.-Any agreement between employ~l\ers and em-
ployees made in accor~dance with the Natioinal Industrlil Recove-r~y
Act, may fix other wages and hours than those set forth in this Cod~e,
provided that no such argreemnent may fix maximum hourss in excess
of those provided in this Code, or minimum wagres lower that those
provided in this Code.
11. Posting.--All employers shall post in conspicuous places ac-
cessible to employees, provisions of this Code relating to hours and
wages, and conditions of employment.
12. Em,ploymentrr. by S~~~tLeveal Employers.--No employer shall know-
ingly permit anly employee to work for any time which, wrhen to~taledl
with that already performed for another employer or employers in
the Industries, exceeds thle maximnum permitted hLerein.
1. ~A Code Authority is hereby constituted to cooperate with thre
Admlinlistrator in the administration of this Code.
2.. The five or more members of the Code Aut~hority to represent
the Industries shall be designated by: the Admninist~rator, and in
addition the AIdministrator ma appomnt not, more than three (3)
members, without vote, to represent the Administration. One of
these members, without vote, may be appointed by thle Administrat~or
upon recommendation of the Labor Advisory Board to represent
3. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authorityr shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association,
bylaws, reg~ulations, nd any amendments when made thereto,
together with. such other information as to membrship, organiza-
tion, and activities as the Administrator .may deema necessary to
effectuate the purposes of the Act.
4. The Code Aruthority m~y- appoint its own officers and employees
and except as he~rein. provided, prescribe, subject to the approval of
the Administrator, rules, regulations, andbyaws for it procedure
a~nd th conduct of it business and affairs.
5. In order that th Code A8uthority- shall at all ~time be trul
repr~esentattive of the Industrsaninoer respects comply wt
the provisions of the Act, the Admlinistrator may provide such hear-
ings as he may deem proper; and therafter if he shall find that
the Code Authority is not trully representative or does not in. other
respects comply with the pr~ovisions of the Act, may require an
approprl'~ iate. modification in the method of selection of the Codte
Authority, or any sub-Code Authority.
6. Memberscl of the Indust~ries shall be entitled to participate in
and share the benelrfits of the activities of the Code Authority b~y
ont~'ling to and complying with the requirements of this Code and
sus~taiining their reasonable share of the expenses of its adminis-
Itration. Such reasonable share of the expenses of administration
shall be determined by the Code Authority subject to review by
the Aldmrinistrator, on. the basis of volumeo business and/or such
other factors as may be deemed equitable.
7. N~Iothingo contained in this Code shall constitute~ the members of
thle Code Authority partners for any purpose. N~or shall any mem-
ber of the Code ALuthority be liable mn any manner to anyone for any
act of an~y other member, Officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority, exercis-
ing reasonable diligence in the conduct of his duties, hereunder, be
liable to anyone for any action or omission to a~ct under the Code,
except for his own willful misfeasance or nonfeasance.
8. Fior the Embroidery Thread and Scallop Cutting Industry,
there shall be elected by the Association a Fiair Practice Agrency3,
consisting of three representatives of the Cooperative Embro~idery
Thread and Scallop Cutters Association of Union City, NewFP Jersey,
to cooperate with t~he Code Authority in administering the provisions
of this Code applicable to the Emzbroidery Tread and Scallop Cutting
9. The Code Authority shall have the following duties and powers
in addition to those elsewhere provided in this Code and to the
extent permitted by this Act;:
(a) ]Review all questions of disputes arising under this Code;
(b) Insure execution of the provisions of this Code and provide
for the compliance of the Industries with the provisions of the Act,
under such rules and regulations as may be prescribed by the
(c) Shall receive complaints of violations of this Codemk
invstiatonsthreo, rov~ide hearings thereon, adjust such cm-lr
plants an rferunajusedviolations to thle ~Admmiistrator with
a report and recommendations for appropriate action, under such
rules and regulations as may be prescribed by the Administrator;
(d) Use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code, and that such traded
associations and agencies shall at all times be subject to and comply
with the proovisions hereof ;
(e) In-vestigate the importation. of competitive articles and of
machines into the United ;States on such terms or under such condi-
tions as to render ineffective or seriously endanrger- the maintenance
of the Code, and act as the agency for making complaint in respect
ther1eof to the President on behalf of the Industries; and
(f) Secure from members of the Inmdustries, equitable and propor-
tiolntae payment of thne reasonable expenses of maintaining the Code
Authority and its activities:
(g) Cooperate with the Administrator inr regulating the use of
any N.R.A. insignia solely by, those mlembers of the Indusries wvho
havec assented to and are complying wcithi this Code;
(h) Set up a Service Bureau with. the necessary mac'hinery, rules,
regurlaltio-ns, and facilities for properly supervising cr~edits alnd for
aiding in pr~levention of selling below cost;
(i) Fa~scilitatet a~d. expedlite the csystematir: study~ of orders, prlic~es,
and practices, and recommend mecthodls calc~ulated1 to place the In-
tdustries as a wFhole, or any subdlivision therleo.f, upon a f~air comlpeti-
(j) Establish~t a form of sales contract and/or ordeftr blank, the use
of wfhichl shall be obligator-y, except as may be oth~erwisje dete~rminedc
by the Code Authority), on all members of the Indlustries covered byT
thsCode, except members of the Emnbroi~er~y T'hr~ead and Scallop
Cutting~ Indusitry,, which formn shall provide spaces for the entry o~f
thie telrmls andi conditions of sale as agreed upon b~etween1 buy~r and
(k) Select a co~nfident~ial agency to obtain from all members of the
industries certifiedl reports of such character and in such form as
the Code: Authorit~y may prescribe. The agency shall be in no way
engaged in the industries or conetd with any member thereof.
All information rteceived shal be held as secret andl confidential be-
tw-een the agrency and the reporting memer. The agency shall
analyze, consolidated, and dtigest, the reports and shall disclose to the
Code Author-ity only the general findings. The findings shall be
available to all members of the Industries wriho have cooperated with
the Code Au~lthority in the admuinistration of this Codle, and the re-
por'ts shall be available to the Admllinist ra tor ; providIed, however, thlat
nothing~ in this paragraph shall be construed to deprive dulyV author-
ized repr~esntatives oft the Cod-le Authlor~ity of th right andl power
to investigate complaints of violation under Section 9 (c) of this
(1) M~ake. recommendations concerning the problem of contrac-
tual relationship between muembe~rs of the Indust~ries and embroidery
merchants, jobbers, dealers, and/or mliddlemen;
(m~) Sept upn ruePs and regulaRtionns gomverning the. making of returns
and reports as to production, machine hours, ]labor hours, and pay-
roll accounts by members of the I~ndustries covered by this Code;
(n) Devise and set up a D~esi~gn Registration Service for the
Schillli and/'or Han~d MRachine Embroidery I~nduties, including
branches where necessarily, anrd to adopt such rules and regulaionls,
with th approval of' the Administrator, as may be necessary to pre?-
vent design piracy;
(o) Submlit to the Administrator from, time to time such pro-
posed amendments to the Code as, in its jud'gmnent, will have the
effect of improving the Code or improving the results secured there-
under, and any of- suchr proposed amlendments, when approved by
the Admninistrator, shall have force and effect as provisions of the
Code. Every proposed~ amendment shall be so submitted only after
a canvass of the opinion of the Inlu~stries by the Code Au~thority;
(p) M~ake recommendations for the limitation and supervision
of handicapped persons employed below a minimum wage.
10. In addition to the information :reqluiredT to be submitted to the
Code Authority as set forth in this Art'icle there shall be furnished
to Government agencies such statistical information as the Admin-
fStratorl mlay deemr nece~ssary for the purposes recited in Section 3
(a) of the N~ational Industrial Recovrer~y Act.
11_. If the Aldminis;tra:tor shall determine that anly action of a
code authority or anly agec-n''y the-reof may be unfair or unjust or con-
trary to the public interest, the Adlminist rator may require that such
action be su-\penrded to afford an opportunity for investigation of
the Imerits of such nectio~n and further consideration by such. code
authority or agency pending final action, which shall not be detected
unless the AdmIlini-:t rator approvc~\es or unless he shall fail to disap-
pr~ove after 30 days' notice to him of intention to proceed -with such
action in its original or modified form.
ARTICLE VI--TRADE PRACTICE RULES
Fior all purposes of thne Code the acts described inl this article
shall co~nstitute unfair practices. Any~ member of the Industries
who shall, directly or indirectly, through any officer, employee, agent,
or representative, knrowingly use, emply rpri ob mlyd
anly of such unfair practices shall bt guly, of a violations epofthe
]RULE 1. InGCoura~te Advert~ising.--No member of the Industries
shall use advertising: (whether printed, radio, display, or of any
other nature) or other representation which Is accurate in any
material particular or in. any waty misrepresents any commodity
(including its use, trade mark, grade, quality, quantity, origin, size,
substance, character, nature, finish, ma~terial content, or prepara-
tion), or credit terms, values, policies, services, or the nature or form
of the business conducted.
RULE 2. Ii(;lse Bill~ing.--No member of the Industries shall with-
hold from or insert in any quotation or invoice any sta ement that
makes it inaccurate in any material particular.
RULE. 3. InGzCcurrate Labelinzg.--No member of the Inldustries shall
brandeev or mark or packan commodity in any manner which tends
to eceve r msled prcasers with respect to the brand, grade,
quality, quantity, origin, size, mn trial content, or preparation of
RULE 4. InGOOMFal8 I8/678408 t0 CONmpetitor8, etC.--No member
of the Industries shall use advertising or other representation which
refers inaccurately~ in an~y material particular to any competitors
or their commodities, prices, values, credit terms, policies, or services.
RULE 5. lSelling Below Cost.--No member of the Industries shall
sell or offer to sell anyr commodity at a price below his own. indivcid-
ual cost. H~owFiever, any member mnay meet the price competition of
anyone whose costs under this Code provision are lower. Cost shall
be <1eterm~ined- in neeordalnce wCith the principles enumerated in any
stanardl~t cost system. formulated by the Code A~uthority with the
approval of the Administrator. Distress mnerchandise, surplus
stckcl, seconds, and samples shall be exp~ectedl from this provision.
Subject to the appovl~c\~ of thle Administr~ator, te3 CodeZ Aulthlority
"maF adopt rules and regulations govenig the dlisposal of such
merchandisee below cost.
~RU~LE 6. Irfff-ll18 of Lawu Suits.-Nlo member of the Industries shall
publish or cir~cularize unjustified or unwrarranted threats of legal
proceedings ~h ichl tenrd to or ha ve thre eflee~t of harassingi compete i tols
or intimiidating their customers.
RULE 7. Secrtc~ Rebcates.-N"o member of thne Indlustries shall se-
cr~etly offer or mnaket any payment or allowance of a rebate, re~fund~,
commissioner, credlit, unearnedl discount, or excess allowanrce, wluhethe
in the form of money or otherwise, for the purpose of ifltuenc-ing a
sale, nor shall a mrJember sec~ret~ly extend to any customer anyT spelial
.serv-ice or privilege not openly extended to all customers of the samle
RULE 8. GOfrtSZ~li gNewt8.-RO member of the Industries shall ship,
or deliver any S~chi~ffi and/or Hand Ma~chine. Embroid'ey on con-it S
sirnment., except for samples, as dlefined~ by the CodeAuhriy
RULE 9. Conuneltrcial Bribery.--No member of the Industries shall
gire, permit to be given or directly offer to give, anything of value
for the purpose of influencing or rewarding the action of anly em-
ployee, ag~ent, or representative of another in relation to thre business
of the employer of such employee, the principal of such- agent or the
represented party, without thes knowledge of such employer, princi-
pal, or pyprty. This -provision shall not be construed to prohibit
free and general distribution of articles commonly used for adv-er-
tising, except so far as such articles are actually used for commercial
bribery, as hiereinabove defined.
RUL;E 10. Inlter~f~erence w1ith Arnother's- C;ontl~racts,.--No member of
the Industries shall attempt to induce the breach of an existing con-
tract between a competitor and his customer or source of supplyr;
nor shall any' such member interfere with or obstruct the perform-
ance of such contractual duties or services.
RULE 11. 'Vi0 %ce, 19tlinidoifGOT, Or UNiG mltel C~Orel/~orl.-NO maem-
ber of the! Industries shall commnit any of the following unfair
,U( ) U[se of violence to person or property, intimidation or uinlawf-
ulcoercion, by a ebro h nutisagainst a member of the
(b) Threat by a member of the Industry to use such violence,
intimidation, or unlawful coercion.
(c) Conspiracy among members of the Indlustr~ies, or among mnem-
bers of the trade and othrs, to use or to thraten to use such violence,
intimidation. or unawPful coercion.
(d) Comnbiningr or cooperation by a mremobe~r of the Industries with
anyone who is using or threatening to use such violence, intimnidation,
RULE 12. L)800%% 8-(a) Fior Schiffl and Long~-Goods ia nd3 Ma-
chin~e Embroidery M\~anufact~urers: a discount, not exceedling two
percent (2%o) for pay~ment. on t~he tePnth day~ of the month following
shipm'ent; the twenty-fifth day shall be considered the end of each
month, and an extra discount of one percent (1%o) m~y be allowed
for payment mlade within one week of shipment.
UNIVERSITY OF FLORIDA
3 1262 08486 8214
(b) For Handcker~chief Hand Miachine Embroidery Manufacturers:
No discounts whatever; thre terms shall be net cash and payment
shanll be made w~ith'in one week of shipment.
(c) For the Embroidery' Thzread and Seallop-Cutting Industr~y:
No discounts whantever; the terms shall be ne~t; the month closing
on the last business day of a month, payable on the tenth day of
thle month following shipm~nent.
Any and all complaints, differences, controversies, or questions aris-
ing between members of the Industries should be, if possible, sub-
mitted to arb~itr~ation. In. the event that thle parties to such a contro-
versy cannot agree upon such tribunal, the Code Author~ity shall
designate the tribunal to whoma it shall be submitted.
1. This Code and all the provisions thereof arei expressly made
subject to the right of the President, in accordance with th~e pro-
visions of sub-section (b) of Section 10 of the National industrial
Rteco~very Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation issued under T~itle 1 of said Act
and specifically, but without limitation, to the right of ;the Presi-
dent to cancel or modify his approval of this Code or any condi-
tions imposed by him upon his approval thereof.
2. This Code~, except as to provisions required by the Act., may
be modified on thie basis of exrperience or changes in circumstances,
such modification to be based upon application to the Administrator
and such notice and hearing as h~e shall specify, and to become
effective on, approval of the Administrator.
AnaTci;E I~X---IMONOPOLIEs, `EroY.
No provision. of this Code shall be so applied as to permit monop-
olies or mronopolistic practices, or to elimninate, oppress, or discrimi-
nate against smll enterprises.
AnnICia XI--PaR~C INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficulty of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increase exrcept such, as may7 be required to meet individual cost
should be delayed. But when made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
.RI; AerI: XIEFFECTIV'E ATE
This Code shall become effective on the second Monday after date
App~rovdcr Code No. 256.
Registry NI\o. 231--1--05.