RegSistry No. 275--1-03
NATIONAL RECOVERY ADMINISTRATION
C ODE OF FAIR C OM~PET ITI ON
UNDERWEAR ANPD ALLIED PRODUCTS
AS APPROVED ON SEPTEMBER 18, 1933
For sale by the Superintendent of Do0cuments, Washington, D.C. - Price 5 cents
1. Executive Order of President Roosevelt
2. Report of Administrator
3. Text of Code
GOVERNMENT PRINTING OFFT(E
UNIVERSITY1111 OF11111111 FLORIDA1111111111111
CODE OF FAIR COMPETITION FOR THE UNDERW~EAR AND ALIJED
PRODUCTS 111ANUFACTURING I'NDUSiTHY
An application havingr been duly ma~de, pursunnt to and in full
compliance writh the provisions orf Title I of thle National Indurstriall
Recovery Act, approvedc June 16;. 193;3. for myl approval of a Code
of Fair Competitioni for the Underw\ear andr Alliedl Products Manu-
facturing Industry-, andl hearings havingr been heldl thereon and
the Administrator hav?~ing~ renderCd hlis report, containing an analysis
of the said Cfode of Fair C'omipetition together with hiis recommlenda-
tions and findings with respect thereto~, and the Adminiistrator hain\igr
found that thle said Code of Fair Competition complies in all respects
with the pertinent provisions of Title I of snid~ act and that the
requirements of clauses (1) and ('3) of subsection (a) of Sectionl 3
of the said act have been met.
NOW, THEREFORE, I, Frankrlin D. Roosevelt, President of
the United States, pursuant to the authority vested in mIe by Title I
of the National Industrial Recovery~ Act, approved June 16, 1933,
and otherwise, do adopt a nd approve thIe report, r~ecommlendat ions,
and findings of the: Ad:ministrator anld do order that. theo said Code
of Fair Competition be and it is hereby approved, subject to ther
(1) That all manufacturers includ~ed within the provisions of
Part I, Section 1(c) of thle Codle be granted a st~ay of fourteen (14)
days after the effective date thereof, during w~hichl period they mary
show cause to the Administrator wrhy they should no~t be includedl
under the provisions of suchi Section.
FRANKLIN D. ROOSEVE LT.~
Approval recommended :
HUGH S. JOHNSON,
THE WVHITE HOUSE,
September 18, 1933.
NATIONAL RECOVERY ADM\INISTRATION
To the Pr~esident:
This is a report of the hearing on the Code of Fair Practice for the
Underwear andl Allied Products Industry in the United States, con-
ducted in Washington on Augrust 10th and 11th, 1933, in accordance
with the provisions of thle National Industrial Recovery Act:
The following exhibits are included and attached:
1. Final Code Submitted
2. Notice of Hearing
3. By-lawis of t~he Underwear Institute
41. Statement of Procedure
53. List of W~itnesses
6. Transcript of thle records
7. Statistical Analysis by Research and Planning Division
In the conduct of t.he hearing every person who had filed a request
for an appearance was freely heard in public, and all statutory and
regulatory requirements were complied with~.
Trhecod w~hP lich is attached wras presented by duly qualified and
authorized represen~tatives of the industry, and complies with the
statutory requirements, as representing fully seventy-tive percent of
the kinittinga and sewing machinery in the Undlerwvear and Allied
I. INDUSTRYr NOw OPERATING UNDER EX;ECUTIVE ORDER
": Pursuant to the authority vested in m~e by Title I of the National
Industrial Recovery Act., approved JL~le 16, 1933, and pending action
upon a Code of Fatir Competition to be presented by the Underwear
and Allied Products Industry,
'' I: agree withl the Inldustry Co~mmitteee represe~ntmgth mnu
factur~ers of knuit~ted, woven andl all other types of underwear und/or
alliedl products, inclutdinga garments miade in underwTear mills from
fabric ma:de on underwiear machines and including any and all
fabrics sold and.~ or usedl for un~derw~ear purposes made onl flat or
w~arpI or circular knitting machines, whether as a final process or
as a parIt of a larger or further process, pending thle approval of a
code of fair competition for thie Industry, thant thley shall be bound,
beginning July 24, 1933, by t~he provisions of the Cotton Textile
Industry Code, as set forth in their letter of July 19, 1033, signed
by the M~ember~s of t~he Inlu~str~y Comm7nittee, offering this agreement
to the Presidenit of the United States, pursuant to Section 4 of the
National Recovery Act, and addlressed to General Hugh S. Johnson,
Administrator, agreement is subject to cancellation at any time
FRANKLIN D. ROOSEVELT.~
JULY 21, 1933.
The Underwear Industry has been operating under the above
Executivle Order since July 21, 1933. The definitions as contained
in the Executive Order have been chanlgedl in the Code herewith
The underwear manufacturers included under the Executive Or-
der but excluded from the Code are preparing their codes for presen-
tation to the Administration before September 1st.
It is understood that upon thle effective date of the Code of Fair
Competition for the Underwear andl Allied Product~s Mainufacturingv
Industry as herew~ith presented, this codle should supersedle the pro-
visions of t~he above Executive Ordler for all those included in the
definitions of said Code.
II DEFINIUITIONS OF THE TNDUSTRY
The Code of Fair Competition origrinally presented by the Under-
wear Inst~itute in behalf of the UTnderwear~ and Allied Products
Manufacturing Indlustryg included the manufacturers of all types of
It became evident during the Hearing that the underwear industry
in its entirety could not be included in the definitions of thleCd
of Fair Competition presented by the. UnderwFear Institute.
Accordingly, the branches of the industry listed below were ex-
cluded, w~ith the approval of all present at the Public. Hearing,
from being boundl under the code: herewith presented:
1. Lingerie undergarments manufactured in the Philippines or
Porto Rico fromt wToven fabrics.
The type of garment manufactured in the above-mentioned localli-
ties is of such a type that it is not in direct competition with similar
products manufactured in thie United States. The labor conditions
in these localities are not comparable to the labor conditions; in the
2. Infants' and Chilldren's undeprwer and leggrnigs, other than
knitted cotton, and w~o.ven cotton so-called athletic type.'"
As the above-mentioned division of the underwe~ar industry is so
closely allied wVith thle manufaLIcture of other chldllren's garments, it
is essential that they be included under a code of fair competition for
the infants' and children's wear. industry.
In Part I, Par. 1, Subpar. i, provisions aire made so that when a
code? of fair competition for the infants' and children's wear industry
is adopted that this type of underwear manufacture shall be included
under the terms and provisions of such code to be adopted.
,3. Manufacture of fabrics sold or used mainly for underwear pur-
poses made onl circular knitting machines.
This type of fabric whichi is largely made of rayon is included
in the code of fair competition for the underwear and allied products
industry herew-ith presented.
It is recommended that a stayr of fourteen days be grantedl to all
manufacturers that may be defined under Part I, Par. 1, Sub-par. c,
for t~he pulrpose of determninin whether or not this type of mnanu-
factur~er should be included as a part of the! U~nderfear and Allied
The labor provisions in this ecde are substarnti~ally the same as
the labor provisions in the code for the Cotton Textile In~dustry
It iLs clearly evident that the labor conditions should be substan-
tially the same as many of the underwear manufacturers spin their
own yarn on the same premises that these yarns are knritted into orr
convertedl into ulnderwear either partially or wholly finished.
To establish any difference in the minimum wage or the working
hours for employees in thle manufacture of underwear would~ cause
difielcult in the labor conditions.
It is therefore recommended that these provisions be made aLs
outlined in Part II of the code.
Sufficient evidence was submitted substantiating the adoption of
one 40-hour shlift for sewing machines, and two 40-hour shifts for
The only objection~ filed was made by Mr~. Wtilliamz Hilleary,
representing an underwear establishment located in a small town.
The limitation -of machine hours would necessitate unemployment
in this instance, but the employment situation as a whole will not be
affected by any limitattion of machine hours.
V--REcISnwrrow or MALLCHIIN'E RY
The Code as approved by the industry at the close of the Hearing
contained: the following provision:
"' On and after the eoffectiv-e date all persons en~gaged or engaginga
in the Industryr shall register with the Industry Commlittee each unit
of their productive machinery. Upon recommnendation by the In-
dlustry C~ommiittee the Adlministrator miay require that prior to the
installation of additional productive machinery by persons engaged
or engaging in the Industr~y, except for the replacement of a similar
number of existing machines, such persons shall secure from the
Adlministrator a certificate that such installation will be consistent
with effectuating the policy of the National Industrial Recovery
Act during the period of the emergency, and the Administrat~or
may grant or'w~ithhold sulch certificate."
With due thorugh~t and consideration I have changed' this provision
to read .
On and after the effective date all persons engaged or
engagingr in the Industry shall register with the Industry
Committee each unit of their productive machinery."r
for the reason that I firmly believe such restrictive measures should
have more careful consideration before becoming a provision of a,
Code of Fair Competit.ion.
The provisions for administration of this code are capable of pro-
vidirm the Admninistration and the Underwear and Allied Products
Industry with sufficient data to make recommendations for the elim-
nation, of certain provisions in the code as herewith presented and/or
the addition of further provisions to this code which would be bene-
cial to the industry as a whole.
VII-UwANF In TRADE PRACTICE
The provisions for unfair trade practices contained in this code
should, to a great degree, correct certain evils that have existed and
that have developed in the industry.
It is recommended that a careful study be made by the adminis-
trative body of the code as to the immediate results of the fair prac-
tice provisions of the codte.
Provisions for furthering the adoption of standards in the under-
wrear industry will ~o longo way toward correcting somne of the
major evils now exis ing.
+ + + 8 & &
In this application for the approval of this code, it. is stated that
the applicants confidently believed their membership t~o include more
than 75C% of the productive c~apacityl of the entire underw~ear field,
The following is a tabulation of the estimate of number of mills
in each of the.Groups which are covered by the. Code of Fair Com-
pet~it~ion for the U~ndrwea~Pr and Alliedl Producits~ Mannuifac~turin In-
dustry and the number of such mills, in each group, which ar~e memi-
bers of the Underwear Institute:
EtmtdNumber of Percent
Nun sr o 1\embers Production
Knit Retail Oroup.... .~.~...~...~.......~~..~~..................... 22 22 ( 05
K nit Jobbing Group........... ...... ...... ....... ...... ...... 107 135 J
Bilk and Rayou Oroup..............-----~---~..~................... 227 GA 65. 23
Woven Group......... .~~~.-.. ..................................... 66 60 84. 36
Sweater Group........................_~-~ -~..~..................~~. 36 33 80
W a p KntFa rc rup .. ....... ... ............32 26 08
Knit Elastic Oroup...~..~.__. ....~_--..~........................... 27 20 80
K~nit Work Glov'e Fabric Group... ...........-~.....~--............ 6 5 80
Beef Tubing and Stockinette Group.~~~..~~-.-~~--~.~.............. 7 4 80
Knit Cotton W'ash Cloths and Novelties Group...........22......
I find that:
(a) the. code complies in all respects with the pertinent provi-
sions of Title I of the Act, including, without limlitation, subsection
(a) of Section 7, and subsection (b) of Section 10 thereof; and that
(b) the Underwear Institute imposes no inequitable restrictions
on admission to membership therein and is truly representative of
the Underwear and Allied Products Industry and that
(c) the Code is not designed t~o promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them, andi will tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
Further, that the provisions of the code will result in a substan-
tial increase in wages, and that there will be emnploy~ed in the
industry a greater number of persons than to be found in any peak
period of operation.
The Code provides for wage scales and maximum hours of work
for all employees as well as those engaged in process operations.
For the first time in the history of the Underwear Industry the
majority of concerns in the manufacture of underwear and allied
products combinedl and formed an association known as the Under-
In the formation of this Institute it became evident at the outset
that a certain branch of the underwear industry was unwilling to
become a part or be known as a part of the underwear industry.
This particular branch is known as the manufacturers of circular
knit rayon fabr~ics. They were not present at the Hearing and pre-
vious to the Hearing did not attend any of the meetings held by
the uniderwear committee in formulating their code. It was not
until the close of the Hearing that a brief was filed by the majority
of manufacturers of the circular knit rayon fabrics claiming ex-
emption from the provisions of the underwear code. Their conten-
tion was that, they are a separate indlustry.
To facilitate the passage of t~he Code they agreed to acknowledge
the code, provided they be granted a stay exemptinga them from the
provisions of? the code for a period of 14 days in which time they
should show cause why they should be classed as a1 separate industry.
The only other dissenting factor at, the Hearing was a representa-
tire of a small mill claiming the limitation of machine hours would
force him to dlismniss one thiirdl of hlis workers, as he does not have
sufficient capital to add mloree machines. As th~e majority of con-
cerns inl thle underwear industry requested the limitation of machine
hours, it is deemnedl dvisable that. thiis limitation remnnin in the Code
withl a possibility that. in certainly instances they mnigrht request exemp-
tion from certain provisions by submitting their plea for exemption
to the underwear industry conunitt~ee.
The Codle as originally presented at the Hearing was changed con-
siderably before thle termination of the Hearing, and thle proponents
of the original Code readlily accepted the changes.
All divergencies, except as stated, have been harmonized in the
provisions as presented.
Accordingly, I hereby recommend the approval of the Code of
Fair Competition for the Underwear and Allied Products Mianu-
HUGCH 8. JoHNSON, Admin~stlrator.
CODE OF FAIR COMEPETITION FOR THE UNDERWEAR
AND ALLIED PRODUCTS MANUFACTURING ]INDUSTRY
To effectuate the policy of Title I of the National Industr~ial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the U~nderw~ear and Allied Products Rlanu-
1. The term Undlerwear and Allied Produclts M~anufacturing In
dustry "' (hereinafter referred to as the Industry) as ulsed hieremn is
defined to mean the manufacture of-
(a) K~nitted, w~soven, and all other types of underwear manufalc-
tured from all types of materials, with t~he exception of women's
undlergarments (other than so-calledl athletic type)), pajamas, and
negligees made from woven fabrics of silk;, rayon, cotton, or fanunel-
ette, or of any combination thereof, and also excep~ting women's,
children's, and infant's lingerie undergarmients manufactured in. th
Philippines or Puerto Rico from woven fabrics;
(b) Garments made in underwear mills fromn fabric made on
underwear machines, excepting, however, the cutig and fabricat-
ing of shiirts other than undershirtsj provided, however, that thie
manufacture of fleece-lined sweat shirts and othler garment~s of like
nature are not included in this exceptionI;
(c) Any and all fabr~ies sold or used mainly for underwear pur-
poses made on flat or warp or circuilar knitting machines;
(d) K~nitted elastic fabr~ics;
(e) K~nitted tubing for meat bagg$ing;
(f) K'nitted work-glove fabrics;
(g)~ Knit~ted fabl~ris ma.de~ for legg~ings; andd
(h) Knitted wash clothes:
(i) Pr'ovzided, ho evrlzc, Thlt. ny perso;;n manuIlfacturi~ng infanrlts'
andu chldllren's underwear andl leggingrs, other thasn knitted cotton and
woven cotton, so-called, athletic type underwear,, may elect to
operate under the provisions of such Code of Fair Comipetition for
the Infants' and Children's Wlear Industry as may~ thereafter be ap-
provedl by tlhe President of the United States; pending the approval
of such C~ode of Fair Competit~ion for t~he Infants' and Children's
WFear Indlustrly such persons operating under the P1reident's Reeml-
ployment Agreement mnay continue to operate under said Agreement,
andl such persons not operating under the President's Reemplloymentc
Agreement shall operate under the provisions of this C~ode.
2.~ The termi "' Employers as used herein shalll include all persons
whzo employ labor inl the conduct of! any branch of the Industry.,
3. The term '' Employtees as used herein shall include all persons
employed in the con'du:ct of any branch of the Industry.
4. The term Productive Machinery as used herein is defined
to man nitingmachines and/or sewing machines used in the
5. The term I~nitting Machines as used herein shall include
all types thereof which heave a part in the process of the manufac-
ture of underwear and allied products as defined in paragraph 1
6. The term "' Sewing Machine as used herein shall include all
types of sewing machines used in the manufacture of products as
defined in paragraph 1 above.
7. The term Effective Date as used herein is defined to be the
second Monday after approval by the President of the United States
of this Code.
8. The term "L Persons as used herein shall include natural per-
sons, partnerships, associations, corporations, and trusts, including
trustees in bankruptcy ,and receivers.
9. The term "' M~ills "as used herein shall include all places where
any of the kinds of manufacture defined in paragraph 1 takes place.
10. The term "' Institute as used herein shall mean the U~nder-
wear Institute, located at 203 Union Trust Building, Washington,
11. The term "L Industry Committee as used herein shall mean the
Underwear and Allied Products Manufacturing Industry Com-
mit~tee provided for in Part IV of this Code.
12. The term "L Act as used herein shall mean the National In-
dust~rial Recovery Act and all amendments thereto, and the term
" Code shalll mean this and/or subsequent and/or supplemental
codes and amendments thereto.
13. The term "L Secretary as used herein shall mean the Secretary
of the Institute.
14. The term Learner as used herein shall mean an employee
engaged in any process in the Industry requiring skilled labor with
less than eight (8) weeks' experience in the same or any comparable
15. The terml Privileged Employee shall mean one who by rea-
son of proven physical or mental infirmity is not able to do the
minimum amount of work usually done by employees in his classifica-
tion of work.
PanrT I -TLAnon
1. Prokiibition of Child Labor.-On or after the effective date of
this Clode, employers shall not employ any minor under the age of
sixteen (16) years.
2. Eilimination of Home Work.--No part of the process of the
manufacture of the underwear and/or allied products covered by
this Code shall take place in the home premises or living quarters of
any person. The purpose of this provision is to prohibit the dis-
tribution by any person governed by this Code of products or
materials to anyone for home work.
3. Regulations of Hou~rs of W;ork.--(a) On and after the effective
date, employers in the Industry hall not operate on a schedule of
hours of labor for their employees-except offce and supervisory
staff, repair-shop crews, engineers, electricians, firemen, machine
fixers, shipping, watching, cleaners, and outside crewp-in excess of
forty (40)' hours per week.
(b} On and after the effective date the maximum hours of labor
of repair-shop crews, machine fixers, engineers, electricians, and.
watclung crews in the Industry, shall, except in the case of emergency
work, be forty (40) hours a week; with as tolerance oif: 10 percent.
Any emergency time in any mill shall be reported monthly~ to the
(c) On and after effective dlate the maximum hours of labor
for office employees in the Indust'ry shall be an average of forty
(40) hours a week over each period of one month.
(d) Until adoption of further provisions of thiis Co~de that may
prove necessary to prevent any improper speedingr up? oft wo~r
(stretch outs), no employee shlll be requniredl to dlo~e any work in
excess of the practices as to the class of work of such employee
railing on July 1, 1933, or prior to the SChar~e the WCork 11Iovement,
unless such increase is submitted~ to and approved by t~he Industry
Committee created by thle Code and by the Adlnurstrator.
(e) These provisions for maxsimlum hours establishi a laximumm
of hours of labor per wFeek: f'or every emplloyeel covered, so that
under no circumstances wFIll suIch an em~ployee be emlployed or p~er-
mitted to worki for onie or more employ-ers in, thle industry in the
aggregate in ex~es~s of the prescribed number of hours in a single
4. M~inimum.~l Wa'ge Rate~s ---(a) Onl and after the effective clate,
the minimum wage t.hat shall b~e paid by employcrsi in the industry
to any of their employees--except to learners, privileged emlplo~ees,
cleaners, and outside crews~s-shal bhe at thle rate of $1e.i~00 per wreek;
when employed in the Southern section of the rIndustry aind at; the
rate of $13.00 per week w~hen emnploy-ed in the NTorthern1 sectionr for
forf~tT (40) hours pier w~eek of labor. Learners shall b~e pa~id ait the
standardl piece-w;orkr rate, but in no event. shall. be paid less thian
$8.00 per wFeek.
The States of Virginia, Tlennessee. North Car~olina, South Cfao-
lina, Georgia, Florida, Alabams, 111ississippi. Arkannsas, Texas,
Loruisiana, Oklahoma shall constitute the Sou~ther~n~aec~tion of the
Industry. Other states and the District of Columbia~ shall constitute
the Northern section.
(b) The amount of difference existing prior to the effective date
between the wFage rates paid various classes of empllloyees receiving
more than the established minimum wagre shall not be dcrlen~sed; andl
in no event shall any employer paytS any'S employee a wnge rate which
will yield a les wagnne for a w~ork wTeek of forty (40) hours than such
employee wTould have received for the same class of wori for thre
longer week of forty eight (48) hoursi or more~ prvi-;lingr pr~ior to
the effective dlate. It shall be a function of the Industry Committee
tol.,,. observec:, the oprto fthese provis:ionls and recommendl to the
Administrator such further provisions as experience may indicatej
to be appropriate to effectuate their purposes.
(c) The provisions for a minimum wage in this Code establish a
guaranteed minimum rate of pay per hour of employment regardless
of whether the employee's compensation is otherwise based on a
time rate or upon a piece-work performance.
(d) Cleaners, outside workers, and privileged employees combined
shall not exceed eight (8) percent of the total employees; they shall
receive not less than sevrentyv-five (75) percent of the minimum wage
provided for ordinary employees in Clause (a) above and when
working onl a piecework basis shall receive the standard piecework
rate for t~he particular operation performed.
5. GTeneral Regulations.-Employers shall comply with the re-
quirements of Section 7 (a) of Title I of the National Industrial
Recovery Act, as follows:
(a) Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers
of labor, or their agents, in thle dlesigvnation of such representatives
or in self-organization or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
(b)~ No employee? and no one seeking employment shall be required
as a condition of employment to join any comn~ any union or to
refrain from joining, organizing, or assisting a abor organization
o i w hoi(c), E:~mn~poloes shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
1. No sewing machine shall be operated for more than one (1)
shift of forty (40) hours per week.
2. No ktnittiner machine shall be: operated for more than two (2)
shifts of forty (40) hours each per week.
PAnT IV- ADMINISTRATION
1. To effectuate further the policies of the Act, an Underwear and
Allied Products Mlanufacturing Industry Committee is here'by set
up to cooperate with the Administrator as a planning and fair prac-
tice agency for the Underwear and Allied Products Mannufacturing
Industry. This Conmmittee shall consist of six representatives of the
Underwear and Allied Products Jndustry, duly elected by the mem-
bers of the UTnderwear Institute, and three members without vote
appointed by the President of t~he United States. The Industry
Commlittee may fr~om time to time present to the Administrator rec-
ommendations based on conditions in the Industry as they may de-
velop from time to time which will tend to effectuate t~he operation
of the provisions of this Code and the policy of the National Indus-
trial Recovery Act. Such recommendations, when approved by the
Administrator, shall have the same force and effect as any other
provisions of this Code.
(a) The Industry Committee shall cooperate with the Adminis-
trator in making investigations as to the functioning and observance
of any provisions of this Code, at its own instance or on complaint
by any person affected, and shall report the results of said investiga-
tions to the Administrator.
(b) The Industry Committee may make specific recommendations
to the Administrator for changes mn or exemptions from the pro-
visions of this Code as to the working hours of Inmachinery which
will tend to preserve a balance of productive activity with con-
sumption requirements, in order properly to serve the interests of
the industry and of the public.
(c) The Industry Committe may also investigrate and informn the
Administrator on behalf of the Industry as to the importation of
competitive articles into the United States in substantial quanti-
ties or in increasing ratio to domestic production on such terms or
under such conditions as to render ineffective or seriously to-endan-
ger the maintenance of this Code and may act as on agency for
making complaint to t~he President on behalf of the: Industry, under
the provisions of th~e National Industrial Recovery Act., with
2. WVith a view to keeping the President informed as to the ob-
servance or nonobservance of this C~ode of Fair Competition, and
as to whether the Underwear aind Alliedl Products TIndustry is tak-
ing appropriate steps to effectuate the declared policy of the
National Industrial Recovery A~ct, each person eng-agedl in the In-
dustry shall furnish duly certified reports in sub~stance as follows
and in such form as may be providled by the Ind~ustryr Committee:
(a) TTrlaes arnd Hours of Labor.--Returns every four weeks duly
certified showing actual hours worked by the various occupational
groups of employees and mini-muml weekly rates of wages.
(b) Machinzery Dat~a.--Ret~urns every fojur weeks duly certified
showing the number of knitting and..'r sewing machines in place,
the number of such muachines actually operated each week;, the num-
ber of shifts, and the total number of machiine hours each week
for each of the above types of machine.
c. Prodluction Dat~a.-RPeturns evecry four weeks duly certified
showing, in terms of the unit. commuonly~ used by the various branrches
of the Industry affected, e.g., linear yards, potinds, p~ieces, or dozens,
the following: 1, production; 2, stocks on hand ((a) sold, (b) un-
sold); 3, new orders; 41, unfilled orders.
The Underwear Institute, 203 Union Trusit B~uidingi, Wash~ington,
D.C., is hereby constituted the agency to collect and receive such
reports. The Industry Committee mnay from time to time, subject
to the approval of th~e Administrator, modify the nature of these
3. On and after the effective date all persons engaged or engagmgn
in the Industry shall register with the Industry Committee each;
unit of their productive mach~inery.
4. Each person shall file with the Secretary of the Institute
promptly upon its issuance each and every price list., duly certified
by a proper execult~ivre, showingr all prices of the respective mner-
chandise of the respective person, and all terms, including enshi and
quantity discounts and allowances of every description and condi-
tions pertammgc~- t~o transportation charges or allowances applymga
thereto, and shall likewise promptly notify the Secretary as to any
and all1 changes in such prices, terms, discounts, and allowances not
covered by price lists. Such price lists and notices shall be filed by
the Secretary for reference, and shall be available for inspection
only by thle Secretary or the Administrator, or their duly authorized
representatives. Nothing in this paragraph 'shall be construed to
nullify~pV: or ~ ~ ,~ ~ modif an te roiino ti oe
keeping of all records required t~o be kept by the provisions of this
Code in such manner that an inspection of them shall show readily
and easily whether or not the provisions of this Code have been or
are being violated.
G. Any employer may participate in any activities of the Under~-
wear Institute and in the preparation of anly revision of, or additions
or supplements to, this Code by assuming the proper pro rata share
of the cost and responsibility of creating and administering it, either
by becomling a member of the Underwear Institute. or by paying to
it an amount equal to the dues from timne to time provided to be
paid by a member in like situation of the Underwear Institute.
7. Subject to the approval of the Administrator, there shall be
established and maintained by each person engaged in the Industry
methods of cost finding approved by the Induustry Committee.
PAnT V-GENERAL PROVISIONS
1. No nprson s~hall manulfactulre or conntrrct. for the manunfacturing
of underwear or allied products in penal or other institutions not
conforming to hours and standards required by this Code. Under-
wear or allied products produced in such institutions shall not be
mnerchandized or sold in such a manner as to create unfair competi-
tion under this Code.
2. All standards already formulated in cooperation with the Bu-
reau of Standards of the United States Department of Commerce
and approved by the Industry or standards which shall be so formu-
lated and approved shall become the standards for the Industry.
All merchandise manufactured after the effective date shall be
plainly and visibly marked by an indelible stamp or firmly sewn
label "L substandard ", where such merchandise comes below the mini-
mium standards. Every manufacturer shall plainly mark with an
indelible stamp or firmly sewn label the sizes o~f measurements of
his product thereon. However any merchandise manufactured
prior to the date of adoption'o o standard for such merchandise
shall not, in any case, be classified as substandard merchandise,
and the Secretary shall notify all known interested persons in the
Industry of each new standard adopted and the effective date thereof.
3. WVhere the costs of executing contracts entered into in th~e In-
dustry prior to the presentation to Congress of the National Indus-
trial Recovery Act are increased by the application of the provi-
sions of that Act to the Industry, it is equitable and promotive of
the purposes of the Act that appropriate adjustments of such con-
tracts to reflect such increased costs be arrived at by arbitral pro-
ceedings or otherwise, and the Industry Committee, the applicant for
this Code, is constituted an agency to assist in effectinga such ad-
4. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
vision of Clause 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule or regulation, issued under Title I of said Act., and specifically
to the right of the President to cancel or modify his approval of
this Code or any conditions imposed by him upon his approval
5. Such of the provisions of this Code as are not required to be
included herein by the National Industrial Recovery Act, may
wiith the approval of the President, be modified or eliminated if it
appears that the public needs are not being served thereby and as
changes in circumstances or experience mnay indicate. They shall
remain in effect unless and until so modified or eliminated or until
the expiration of the Act. It is contemplated that from time to timne
supplementary provisions to this Code or additional codes will be
submitted for the approval of the President to prevent unfair com-
petition in price and other unfair and destructive competitive prac-
tices and to effectuate the other purposes aind policies of Title I of
the National Industrial Recovery A~ct.
6. The Underwear Instit~ute, the applicant for this Code, shall
impose no inequitable restriction upon admnissionn to membershiip.
PanT VI UNrdm TRADE PRACTICES
To effectuate the purposes of the National Industrial Recovery
Act, persons engaged in this Industry shall comply with~ the follow-
ing trade practices, and violation of any of them sIH hall b construedt
as an act of unfair competition:
1. In order to prevent destructive price cutting in the InldustryS no
person shall sell ainy mer~chandise at less than its reas~onab~le cost "
except us to defective goods known in the tradlce as Irregulars ",
" Imperfects ", Or Seconds ", which, whlen sold, shall be( plainlly
and visibly so manrked on eachi garment andl invoiced, andl exceptb as
to goods discontinuedl from the line of the respecctive pjersorn, and
therefore no longer to be manufuetured- by such person. sold at. a
discount price as "' lose outs? nd so desigSnated in the sale and the
invoicing thereof, provided, however, tha~t the Instituite shall submit
to the Administrator, within six months after thie effective date of
this Cod~e, a plan for regulaztinig the dlisposal of d~istress mnerchandtise
in a wa~y to secure the protection of t~he owners andl to promote soundl
and stable conditions in the Industry. The ITndulstryv Clom-mittee
shall, subject. to the approval of the Aidministrator, define "' reasonl-
able cost for the purposes of this Code andi determine up~on a
basis to be uniform among the persons of this Indlustry as the
character of the items to be included in such reasolnbl~le cost.",
2. Standards terms shall be 2/'10 E.O.Mi. or net 6) dlays. Invoices
on annd after the 25th of the months shall be as of thre first of the
following month. Maxtimum rate of anticipation shall be 6 p~ercenlt
per annum. Closer terms shall not be prohibited. The buildlingr up
of prices to take care of greater discounts than 2 percent shall be
prohibited. These terms shall become effective on the effective date
of this Code, except as to shipments against orders booked prior to
the effective date of this Code.
3. No person shall allix to any merchandise, or to the packag~ij
thereof, fictitious resale price tickets, or other resale price Indicattoi;
which may make it appear to the buying public that the actual resale
price charged by the ultimate seller Is lowPer than the supposed staid..
ard as indicated by such fictitious resale price indication. No person
shall sell on consignment basis, directly or indirectly, or grant rebates
to any customer, or enter into any secret selling conditions with agr~
customer. No person shall allow the equivalent of secret rebates-or
secret discounts in the way of advertising or other allowances. No
person shall accept and pay for, or makre credit allowances for, goods
returned for other causes than fault or error of the seller.'
4. Regullar number, i.e., "' Firsts ", shall not be marked "L Seconds ",
or so sold. M\Iisrepresent~ation or misbranding of merchandise is an
unfair trade practice. No person shall enter into any form of special
remuneration of employees of a customer to encourage such em-
ployees to push the sale of suchl person's merchandise to the detri-
mlent of com~etit~ors. No person shall enter into any false or mlis-
leadingr nr advertisi;n. No person shall imitate the trade marks, trade ,;;
names, and/or trade slogans of competitors.
This Code shall not in any wqay permit monopolies or monopolistic