NATIONAL RECOVERY ADMINIST
negiswry no. Zsl-it
CODE OF FAIR COMPETITION
:.. ..-~..... IN
AS APPROVED ON JUNE 28, 1934
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Approved Code No. 474
CODE OF FAIR COMPETITION
NEEDLEWORK INDUSTRY IN PUERTO RICO
As Approved on June 28, 1934
CODE OF FAI COMPETITION FOR THE NEEDLEWORK INDUSTRY IN PUERTO
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for Tny approval of a Code
of Fair Competition for the Needlework Industry in Puerto Rico,
and hearings having been held thereon and the Administrator having
rendered his report containing an analysis of this Code of Fair
Competition, together with his recommendations and findings with
respect thereto, and the Administrator having found that this Code
of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section 3 of the said Act have
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that this Code of Fair
Competition be and it is hereby approved, subject to the following
(1) That any member of this Industry as defined in this Code
under Article II, Section 1, shall in engaging in this industry in
Puerto Rico be exempt from the provisions of the following Codes
of Fair Competition:
(a) The Handkerchief Industry.
(b) The Dress Manufacturing Industry
(c) The Cotton Garment Industry
(d) The Blouse and Skirt Manufacturing Industries
(e) The Light Sewing Industry Except Garments
(f) The Art Needlework Industry
(g) The Infants' and Children's Wear Industry
70958 --57-173--4--- (175)
(h) The Undergarment and Negligee Industry ., ':
(i) The Underwear and Allied Products Manufacturing Industry
(j) The Pleating, Stitching and Bonnaz and Hand Embroidery .
(k) The Schiffli, the Hand Machine Embroidery and the Em--
broidery Thread and Scallop Cutting Industries.
(2) Where articles are manufactured or processed, in part, in
Puerto Rico, under the provisions of this Code, and in part in the
Continental United States under a Code of Fair Competition which
prescribes the use of labels bearing N.R.A. insignia upon such ar-
ticles, the Code Authorities of such Codes ad the Code Authority '
of this Code shall, within a period of sixty days from the effective
date of this Code, formulate and submit for the approval of the
Administrator a plan for the issuance and use of labels upon such
articles, and such special regulations relating thereto as may be nec-
essary. Pending the approval of such plan and regulations, unless
the Administrator shall order otherwise, continental manufacturers,
as defined in this Code, shall not be required to comply with the label
provisions of their respective Continental Codes as to products
manufactured or processed, wholly or in part, in Puerto Rico, and
bearing labels affixed to them pursuant to the provisions of this
(3) That any contractor or manufacturer as defined in this Code,
in the manufacture or processing or whose products homeworkers
are engaged as employees, shall be bound to pay such employees any
deficiency in the wages actually received by them below the amount
of wages which they should receive under the provisions of this
Code. Such contractor or manufacturer shall be responsible for
the delivery to such homeworkers of all their wages.
(4) That there shall be appointed by the Administrator for the
Industrial Recovery, within ten (10) days after the effective date.
hereof, a Puerto Rican Needlework Commission consisting of three
persons: one of whom shall be nominated by the Code Authority for
the Needlework Industry in Puerto Rico, another of whom shall be. :
nominated by the several Code Authorities of related industries in
continental United States, and a third person to serve as chairman,.
shall be nominated by the National Recovery Administration. This ~
commission shall study the operation of this Code together with the
operation of such codes as have jurisdiction over the manufacture of
competitive products in the United States with a view to determining
the relative effect of the operation of this Code upon the manufac-
ture of such items in the several States and in Puerto Rico. Such
Commission shall be empowered to make recommendations to the
Administrator for such modifications in this Code as may, in the '
opinion of the commission, be necessary in order to maintain fair
c:,npetition in the needlework trade in the several States and on
the Island of Puerto Rico and in order to effectuate the purposes of
the National Industrial Recovery Act.
(5) That the choice of the impartial chairman of the Piece Rates .;
Commission, shall be subject to the approval of the Administrator
and that the piece rates established pursuant to the provisions of
Section 5 of Article IV of the code shall be binding upon members
of the Industry, for not more than a period of ninety days, from the
effective date of this. code. The Needlework Commission and the
i:I Rjene Rates Commission shall, either jointly or severally, within
in, ety days after the effective date of this Code, recommend the con-
S tinuation of said established minimum piecework rates or changes
:: in-such rates, or recommend a point system or other system for
adjusting the minimum compensation of employees to the minimum
Swage rates provided in this Code. Such recommendations shall,
SUpon approval of the Administrator, after such notice and hearing
as he may prescribe, be binding upon all members of the Industry,
iasthe rates provided for in said section.
:, FRANKLIN D. ROOSEVELT.
Pi, -Approval recommended.
..HUGH S. JOHNSON,
:' THE WHITE HOUSE,
June 28, 1934.
e:. ;:. ..
LETTER OF TRANSMITTAL
The White House.
SIR: This is a report on public hearings and conferences held for
the purpose of obtaining a Code of Fair Competition for the Needle-
work Industry in Puerto Rico.
On January 30, 1934, thirty-five days after the Deputy Adminis-
trator for Puerto Rico had arrived on the Island, the Puerto Rican
Needlework Association submitted a code of fair competition. Fol-
lowing preliminary conferences held at San Juan during the months
of January and February, a public hearing was held in the San Juan
Municipal Theatre on February 28 and on March 1. This hearing
was attended by approximately seventy-five members of the industry
and about 1800 representatives of labor. The San Juan hearing was
later re-convened in Washington to afford mainland manufacturers
an opportunity to be heard. At the Washington hearing there were
present representatives of the code authorities of the affected in-
dustries. All of those who requested an appearance were fairly
heard in accordance with the usual requirements of the National
THE PUERTO RICO NEEDLEWORK ASSOCIATION
The Puerto Rican Needlework Association which acted as sponsor
of this code is the recognized needlework trade association in Puerto
Rico and represents in excess of 90 per cent of the volume of the
business and of the membership of the Puerto Rican Needlework
The experience of these members, under Code Authority direction,
should prove invaluable in code administration, particularly in pro-
tecting the interests of homeworkers.
NATURE OF THE NEEDLEWORK INDUSTRY IN PUERTO RICO
The Needlework Industry is the second largest in Puerto Rico,
employing approximately 7,000 workers in 85 or more factories.
Although no precise figures are available, it is estimated that there
are more than 70,000 homeworkers, about 25,000 of whom live adja-,
cent to towns, within easy access of the factories, while the remaining- ,
45,000 live well inland. The industry is located primarily in or near
the towns of Mayaguez, Ponce, Arecibo, Aguadilla, Guayama and
San Juan, although homeworkers are employed throughout the
The Needlework Industry in Puerto Rico is relatively new, having
grown up during the last twenty years. It began to attain volume
production when mainland chain stores undertook the distribution
of dresses, handkerchiefs, linens, underwear, and other hand-orna-
m ented articles. Relatively speaking, however, the development of
t:he industry has been rapid, considering its obstacles and handicaps.
The members of the industry manufacture or process a great
variety of articles which would come principally under seven of the
apparel codes approved for the United States, including handker-
. :' .:chiefs, infant's, children's and women's wear, cotton and silk under-
.garments, blouses, linens, bridge sets, tablecloths, napkins, bedspreads
I.'Praetically all Puerto Rican garments carry drawn work or hand
u: broidery, found on few articles of like nature made on the main-
: d::i These hand embellished garments may be otherwise of the
same type as mainland products-though in finished appearance they
Sore nearly resemble articles from the Philippines, China, the Ma-
..deira Islands, Belgium or France, with which countries they compete,
..1 :The outstanding feature of the Puerto Rican Needlework Industry
is that few of its members are specialists. Some members of the
... 'industry, it is true, have preferences. For example, one company
I. may prefer to deal in handkerchiefs, but, given the opportunity, will
quite readily divert its facilities to the processing of any other article
Which appears to be profitable. Thus during the several seasons of
S the year, a company might be engaged in several different phases
'f:rneedlework production, depending largely upon market require-
S .If each branch of the Puerto Rican Needlework Industry were
given a separate code or brought under the mainland code for that
article or articles, each member of the industry would find himself
operating under continually changing conditions with respect to
wages and hours and other conditions of employment. This explains
Sthe existence of a single trade association in Puerto Rico and the
submission of one code covering all its needlework trades.
The Needlework Industry on the Island is dependent upon orders
R; from the States for work to be performed upon linen from Ireland,
silk from Japan or China, or cotton from the mainland. These mate-
rials usually are issued by the manufacturer, wholesaler or jobber
who has a sales organization on the mainland to distribute products
S processed in Puerto Rico.
The selling prices of the products are not regulated by mainland
i. prices alone; buyers, in an effort to obtain new and attractive prod-
Saets, have open to them the factories of other countries-the most
notable competitors to Puerto Rico being the Philippine Islands,
S China, the Madeira Islands, France, Belgium and Ireland. If the
S prices of Puerto Rican products are raised excessively it well may
S be that buyers will be quickly driven to the factories of other nations
for sources of supply.
Puerto Rico views the anticipated burden of restricted hours and
increased wages with apprehension, which is in no wise relieved
by the prospect of continued uncertainty as to the regulations under
which the industry will operate or when they will go into effect. The
industry is young-its management is of the first generation-and its
capital and experience is limited. With the exception of fulfilling
contracts now in effect operations are decidedly curtailed, since the
industry has no way of knowing how to plan for the future. In
effect, its hands are tied. In fairness to itself, it can effect no
future contracts until a decision is reached upon the proposed ced ,':3
In the meantime, manufacturers in the Philippines, in China and&
elsewhere, suffering no such handicap are profiting at the expense of
Puerto Rican industry and labor. In a somewhat modified sense
this is true also of manufacturers in the United States.
HOURS AND WAGES
The average working week for employees in the Needlework In-
dustry in Puerto Rico has been approximately 48 hours. Industry
on the Island is seasonal to some extent as it is on the mainland.
There is, however, one factor on the Island which does not exist
on the mainland, i.e., the fact that goods are manufactured for
shipment to the mainland and that shipments are made only once
each week. This frequently necessitates working far into the night.
To correct this practice it is provided ii the code that all overtime
shall be paid for at double the regular rate.
The reduction from 48 to 40 hours per week under the code will
increase employment approximately 16% per cent, and wages ap-
proximately 20 per cent.
Measured by American standards, Puerto Rican wages always
have been low. Factory machine workers, now paid on an average
of $3.32 per week of 48 hours, are to receive a minimum of $5.00 for
40 hours, representing an increase of 50.6 per cent, which, with the
added 20 per cent increase in wages resulting from the 16% per cent
decrease in hours, will amount to a total increase of about 70 per
cent. It should be noted that the $3.32 figure is an average, not a
minimum wage. The present wage, which is indeterminate, would
be much lower and the percentage of wage increase under the code
correspondingly higher. Even greater benefits will accrue to home
machine workers who, under the code, will likewise receive this
Factory hand sewing and hand embroidery workers, normally paid
in the average case from $2.00 to $2.10, are to receive $3.00 per week,
an increase of 46.3 per cent, which, plus the 20 per cent increase
from shortened hours, will amount to about 66 per cent.
No accurately representative rates of payment have been deter-
mined for homeworkers. The Commissioner of Labor for Puerto
Rico and labor representatives in the Territory indicate that about
three persons work on the same product in one home; that each of
the three is engaged on this needlework for 60 to 70 hours a week; ;i
that the three, in the aggregate, earn about $1.00.
The code provides that no employee engaged in home work shall
be paid less than $2.00 per week. It is provided further that there
shall be established immediately upon approval of the code a Piece
Rates Commission, consisting of one member representing labor,
one member representing industry and a chairman agreeable to both
interests, which commission shall devote itself to the time study of
home work production in an endeavor to fix adequate and equitable :.
piece work rates, which in no event shall yield less than $2.00 per
If this plan functions properly and if conditions in the home are
as heretofore stated, three persons in one home could no longer be
a Pittance amounting to $1.00 in the aggregate for 60 to 70
':.work, but would receive instead $6.00 or more for 40 hours
SThis would represent a tremendous increase of over 500 per
4nd should be of great moral as well as financial benefit to the
STHE HOME WORK PROBLEM
liEond-d only to agriculture comes needlework, which gives the
I4Mnfolk opportunity to supplement the family income, while car-
i0or. the aged and infant in the home. Most rural families live
W:fee, with parcels of land thrown in upon which they can raise
N teter they like-without having to divide with the landlord.
tt culture as the basis, needlework helps to sustain the family
'm m some cases supplying the main source of income.
ofehb of the home work is done under conditions closely parallel
Ose of the subsistence homestead.
Ai:!and home work in Puerto Rico represents a much greater portion
l:im:thelle total volume of production than it does in the United States.
t.::he Code does not propose the elimination of home work but
th i its control and regulation, with a view to bringing the hours
ci'Wages and working conditions of homeworkers up to a standard
:'lwiltch will provide both fair competition with factory production
i;fld nable the homeworkers to enjoy a better standard of living. It
:I ii:it cipated that a certain percentage of the work now done in
46t'nes may, within a reasonable time, be transferred to community
ifrktilooms. The approval of this code will make possible a begin-
iisEig of work toward this end.
S' SPECIAL PROVISIONS SUGGESTED BY LABOR
Island industry has granted to Puerto Rican labor nearly every-
ii ng that it has asked, as hereafter shown, except the minimum wage
,'eqnested by labor. The reason this was not granted was the fear
j:ith:iat it would reduce the volume of business sent to the Island, thus
reacting against rather than in favor of insular labor.
SThe following provisions were included at the request of labor:
Article III-1: Labor desired that the 48 hour minimum be reduced
i :to40 hours ; this was done.
: .1 -Article III-3: Labor wished it stipulated that no overtime should
l .Fe worked unless all machines and/or tables of that same type were
?'r: occupied; this was granted.
: Article III-3: Labor requested that double the normal wage be
:: paid for overtime; the industry agreed.
Article III-4: Labor requested that the exemption for managers
and executives be fixed at $12.00 instead of the $10.00 figure proposed
by the industry; this was done.
Article IV-5: Labor requested that homeworkers and their com-
pensation be regulated; the Piece Rates Commission was provided
for to serve this end.
S Article IV-7: Labor wanted a guarantee that employees receiving
above the code minimum for the normal work week prior to its
adoption should not have their wages reduced for the shorter W
week provided in the Code; this section gives that guarantee.
Article IV-8: Labor wished it made mandatory that all piece rat
for factory employees should be increased at least proportionately
to the decrease in hours worked, to further insure employees agaivl I
a possible lowering of wages by their employers; industry concurredQ
Article V-7: Labor asked that the use of sewing machines in thie
home be abolished. This could not be granted on account of their
number of poor people engaged in operating their own machines .iat
home for their livelihood. It was arranged, however, that labot~ir
would permit home sewing only on machines commercially utilized-:
prior to April, 1934, provided that work thereon should be paid for:
at the factory scale and that all homeworkers, machine owners and
machines should be registered with the Code Authority.
Article V-8: Labor desired to see the number of homeworkers re- :
duced if possible and suggested the Community Workroom Plan1:8
as a meansto that end. This section provides for a commission to
study and make recommendations on the feasibility of this or an
Article VI-1: In accordance with labor's request, no member of
the industry may cause any goods to be manufactured or processed
in any factory not registered with the Code Authority.
Article VI-2: Labor asked that members of the industry causing
goods to be manufactured by contractors or sub-contractors should-
be required to pay rates sufficient to enable such contractors or sub-
contractors to pay their employees the minimums provided in the::
code. The industry is so obligated under the code.
Article VII-8 (h) : Upon the request of the Labor Advisoryi
Board and the Research and Planning Division, registration is pro-.
vided for all contractors, sub-contractors, delivery agents, and
It appears from the above sections that the Needlework Industry .;
in Puerto Rico has made a conscientious effort to collaborate with.
labor in its attempt to improve working and living conditions on :li
A Compliance organization has been recently set up at San Juan i:li
and is prepared to function on this code the moment it is approved., -
The Deputy Administrator, in his final report to me on said codei,
having found as herein set forth and on the basis of all the proceed-;
ings in this matter,
I find that:
(a) The code will promote the policies and purposes of Title I,!
of the Act, in that it will provide the first effort at regulation of aniii:i
industry which has suffered severely through drastic and at timeS!l
(b) The Puerto Rican Needlework Industry normally employs' i
more than 50,000 workers, and is classified by me as a major industry,
''.; (io) The code complies in all respects with the pertinent provi-
om of Title I of the Act, including without limitation sub-section
i) of Section 3, sub-section (a) of Section 7, and sub-section (b)
Section 10, thereof; and that the applicant association is an
ustrial association truly representative of the aforesaid industry;
:).that the. said association imposes no inequitable restrictions to
S:(d) The code is not designed to and will not permit monopolies
ii() Those engaged in other steps of the economic process have
O:'.been deprived of the right to be heard prior to the approval of
Recommend approval subject to the following condition:
i: That there shall be appointed by the Administrator for Industrial
^ A covery, within ten days after the effective date hereof, a Puerto
i:::cann Needlework Commission consisting of three persons: one of
i'::]hom shall be nominated by the Code Authority for the Needlework
uidastry in Puerto Rico, another of whom shall be nominated by
ij several code authorities of related industries in continental
jiiited States, and a third person, to serve as chairman, shall be
p. j~tiihated by the National Recovery Administration.
T,' his commission shall study the operation of this code together
H i:: the operation of such codes as have jurisdiction over the manu-
atie of competitive products in the United States with a view Lo
,4twrmining whether the operation of this code is such as to encour-
iag the manufacture of products on the Island of Puerto Rico and
t'o discourage the manufacture of such items within the several
: states. Such commission shall be empowered to make recommnenda-
R:i:ons to the Administrator for such modifications in this code as
;."ayi in the opinion of the commission, be necessary in order to
i: ::it itin fair competition in the needlework trades in the several
iates and on the Island of Puerto Rico and in order to effectuate
S1i1he purposes of the National Industrial Recovery Act.
HUGH S. JOHNSON,
.....Juxx 28, 1934
. .. .*
CODE OF FAIR COMPETITION FOR THE NEEDLEWORM
INDUSTRY IN PUERTO RICO
To effectuate the policy of Title I of the National Industria
Recovery Act, this Code is established as a Code of Fair Competl-.
tion for the Needlework Industry in Puerto Rico, and its provisions
shall be the standards of fair competition for such industry ,ad
shall be binding upon every member thereof.
1. The term "Industry as used herein includes the manufact1atS
ing and processing, including sewing, wholly or in part, within ttlhe
Territory of Puerto Rico, of articles having drawn work and/Oir
embroidery done upon them by machine and/or by hand including,
the business of contracting with reference thereto.
2. The term Employee as used herein includes anyone enga~geM
in the industry in any capacity receiving compensation for hii
services irrespective of the nature or method of such compensation:
except a member of the industry.
3. The term Employer as used herein includes anyone by whok~::i
any such employee is compensated or employed. :
4. The term "Member of the Industry" as used herein includ:is
but without limitation, any individual, partnership, associatiii,,
corporation, or other form of enterprise engaged in the industry i'i
above defined, either as an employer or on his or its own behl -i::!
whether as manufacturer, contractor or sub-contractor.
5. The term "Manufacturer" as used herein includes any indi-i
vidual, partnership, association, corporation, or other form of enter-'a
prise, operating his or its own factory, work room, shop, or other"i
manufacturing establishment, in the Territory of Puerto Rico.
6. The term Continental-Manufacturer" includes, but without
limitation, any individual, partnership, association, corporation, od',
other form of enterprise selling at wholesale to customers located
elsewhere than in Puerto Rico products of the Industry manufac4
tured and/or processed from materials in part supplied by him or it
7. The term "Contractor" includes, but without limitation,
individual, partnership, association, corporation -or other form a
enterprise which contracts to manufacture and/or process in t
Territory of Puerto Rico products of the Industry for a manufaS
turer or continental manufacturer.
8. The term Sub-contractor includes, but without limitatiol|
any individual, partnership, association, corporation or other fort
'See paragraph 2 (1) of crder approving this Code.
"of enterprise which contracts to manufacture, in whole or in part in
the Territory of Puerto Rico products of the Inchistry, for a con-
tractor or sub-contractor in Puerto Rico.
S 9. The term President ", "Act ", and "Administrator ", as used
herein, mean respectively the President of the United States, Title I
of the National Industrial Recovery Act and the Administrator for
i 1. No employee shall be permitted to work in excess of forty (40)
S hours in any one week or eight (8) hours in any twenty-four (24)
i hours period, except as hereinafter provided.
:: 2. No office employee, chauffeur, shipping and/or stock clerk or.
watchman shall be permitted to work in excess of forty-four (44)
S hours in any one week.
3. The maximum number of hours of overtime which any employee
may be permitted to work in any calendar year shall not be in excess
of seventy-two (72) hours. In no event shall any employee be per-
mitted to work more than two (2) hours overtime in any day or more
than six (6) hours overtime in any week. All overtime shall be
-paid for at not less than twice the normal wage rate. Overtime for
any particular manufacturing process shall only be permitted if all
available machines and 'or tables of that same type are occupied.
Machines or tables temporarily vacant on account of sickness or ab-
-sence of an employee shall not be construed to be vacant for this
The Code Authority shall be notified in writing at least one day in
advance of the use of overtime by any member of this industry, and
such notification shall contain a statement of the need for overtime
and the manner in which it will be utilized.
4. The provisions of this Article shall not apply to persons engaged
in a managerial or executive capacity who earn not less than $12.00
5. No employer shall knowingly permit any employee to work for
any time which, when added to the time spent at work for another
employer or employers (in this industry or otherwise) exceeds the
maximum permitted herein.
ARTICLE. IV-WAGES 2
fI1 No employee shall be paid in any pay period less than at the
rate of $5.00 per week except as hereinafter provided.
2. No employee engaged in a factory doing hand sewing or em-
broidery shall be paid in any pay period less than at a rate of three
dollars ($3.00) per week.
3. No employee engaged in work in a home shall be paid less than
at a rate of Two Dollars ($2.00) per week.
4. Apprentices, not to exceed five percent (5%) of the total
number of employees in any factory, may be employed in factories
See paragraph 2 (3) of order approving this Code.
.i ... ..i
and shall be paid not leses than sixty per cent (60%) of the minimmun
wage herein established during the first six (6) weeks of their em-
ployment in the industry, and not less than eighty per cent (80%.,)-
of the minimum wage herein established, during the second six (6)
weeks of their employment in the industry. No employer: shall
knowingly employ as an apprentice any person who has been emt
played in the industry for a total period of time exceeding: twelve
(12) weeks. Apprentices shall be paid at the piecework rate paid
regular piecework employees in the same factory for the same class
of work, provided compensation based upon such rate is greater than
that herein provided.
5. There shall be established immediately upon the adoption of this
Code a Piece Rates Commission, which commission shall consist of
one member appointed by the Code Authority, one labor member
appointed by the Administrator and the two members shall then
choose an impartial chairman.3 .
Such Piece Rates Commission shall establish, within thirty (39)
days after the effective date of this Code, minimum piece work rates
that shall be paid to all employees engaged in hand work at home,
basing such rates on a minimum rate of pay of $2.00 per week, an'd
in every case such piece work rates shall be established on actual
study of the time necessary for the average employee to produce each
article. Minimum piece work rates when established by the Piece
Rates Commission shall be binding upon all members of the industry :
until such time as said rates are revised or changed. Such rates,
however, shall at all times be subject to change on review by the
6. This Article established minimum rates of pay which shall
apply irrespective of whether or not the employee is actually com-
pensated on a time rate, piece rate or other basis.
7. No employee shall receive a lesser rate of pay than is required
to provide the same weekly earnings as were received for that class
of work for the four weeks ending April 30, 1934.
8. All piece rates for employees engaged in any factory shall be
increased at least proportionately for the decrease in hours worked,
to provide not less than the same weekly earnings for employees
engaged on a piece work basis under the maximum hours herein .
established as were received for that class of work for the longer week
prevailing for the four weeks ending April 30, 1934.
9. Female employees performing substantially the same work as
male employees shall be paid the same rate of pay as male employees.
10. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below the minimum established by this Code if the empliyrr .:4:
obtains from the proper Insular Authority, a certificate authorian "g
his employment at such wages and for such hours as .shall be stated
in the certificate. 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 of work for such employee.
SSee paragraph 2 (5) of order approving this Code.
See paragraph 2 (4) of order approving this Code.
t:. 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
I: employed at operations or occupations which are hazardous in nature
i 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. An employer shall
be deemed to have complied with this provision as to age if he shall
S have on file a certificate or permit duly issued by the Authority in
S Puerto Rico empowered to issue employment or age certificates or
S permits showing that the employees are of the required age.
2. (a) Employees shall have the right to organize and bargain col-
lectively, through representatives of their own choosing, and shall
S 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 other concerted activities for the purpose
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 company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
3. No employer shall reclassify employees or duties of occupa-
tions performed or engage in any other subterfuge so as to defeat
the purposes or provisions of the Act or of this Code.
4. No provisions in this Code shall supersede any law of Puerto
Rico which imposes more stringent requirements on employers as to
age of employees, wages, hours of work, or as to safety, health or
S sanitary conditions or insurance, or fire protection, or general work-
ing conditions, than are imposed by this Code.
5. Each member of the industry shall be furnished by the Code
S Authority with official copies of the provisions 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
S filing complaints of violations of such provisions, and shall be kept
conspicuously posted at all times by such members of the industry
in each. shop, establishment or separate unit, to the extent necessary
to make them freely accessible to all employees. Whenever any
modification of, or exemption or exception from this Code permits
any person to pay lower wages or work his employees longer hours,
or establish conditions of employment less favorable to his employees
S than those prescribed by the provisions of this Code, the Code Au-
thority, at the request of such person, shall furnish him with certified
copies of such modifications, exemptions, or exception in sufficient
number for posting alongside of such official copies of Code
i No member of the Industry shall display or furnish any incorrect
S copies of such provisions, directions, modification, exemptions or
S exception. Copies of these labor provisions shall be printed both
%, in English and Spanish.
6. Every employer shall pi'ovide for the safety: an health
employees during the hours and at their places of employmefii.i
Standards of safety and health shall be submitted by:.thei CM:- 'd
Authority to the Administrator within six months after the effective
date of this Code. .
7. Nc member of the Industry shall allow any stamping, cutting.
washing, pressing, folding, ribboning, ticketing or machine ewing
in a home on products of this Industry. Members of the In ~sta ,
may, however, employ workers who have been employed at machine
sewing in homes during the year immediately preceding the ap-
proval of this code, to do machine sewing at home on those machb. es
owned by home workers as of the date of approval of this Code .
upon which they have theretofore done such machine sewing, pro- .
vided every such home worker is registered with the Code Authority, .JI
and provided further that the machine -used by such home worker
is registered with the Code Authority as provided for in Article.
VII, Section 8 (i) of this Code. All work done in homes on sewing
machines must be paid for at a rate not less than the rate for similar
work done in the factory and in no case at less than a rate of $5.00
per week of forty (40) hours. ..
8. The Administrator shall appoint a Commission, on or after
the effective date of this code, to study the Community Work Roo.n "
plan, and if that plan is not adjudged to be feasible to propose an
alternate plan the object of which shall be to take from homes to
Community Work Rooms or Factories as many home workers as
practicable. The Commission shall report its findings on the Coin- i
unity Work Room or alternate plan within ninety (90) days after
its first meetifig.
1. No member of the industry shall cause any goods to be manu-
factured or processed in any factory not registered with the Code i,
Authority in accordance with regulations to be issued by the Code ;
Authority subject to the approval of the Deputy Administrator.-
2. All members of the Industry causing any goods to be maun-
factured by contractors or sub-contractors shall pay to such con-
tractor or sub-contractor for such products, rates at least sufficient
to enable such contractor or sub-contractor to pay their employees
working on such goods the minimum wage provided for by this -
Code and all such payments received by such contractor or sub::'
contractor shall be first applied in the payment of wages to the: ,:
employee working on such goods.
3. No member of the Industry shall accept any goods to : bl:::
manufactured or processed from any continental manufacturers l .i".::i
such continental manufacturer shall pay an amount sufficiient :'i:"
enable such member of this industry to pay to his employees the "
rates of pay as established by this Code.
4. The Administrator may request the Code Authority to study.|
the problem of jobber-contractor and contractor sub-contractor re-':is
lationships. The Code Authority shall make recommendations ti!Q
the Administrator regarding the establishment as part of this Cod0i
of such rules and regulations as will tend to stabilize the relatkiona ';
ship between jobbers and contractors and cmatractors and. s~siib..U
ini contractors and further effectuate the purposes of this Act and of
this code, which recommendations upon the approval of the Admin-
istrator and after such notice and hearing as he may prescribe, shall
become effective as part of this Code.
ORGANIZATION, POWERS AND DUTIES OF THE CODE AUTHORITY
1. A Code Authority is hereby established consisting of:
(a) Thirteen (13) representatives or such larger number as may
be approved from time to time by the Deputy Administrator for the
Territory of Puerto Rico, to be selected as hereinafter provided.
S (b) Such additional members, without vote, not to exceed three
(3), as the Administrator may appoint to represent such groups or
such interests or such governmental agencies and for such periods
as he may designate.
2. Four (4) members of the Code Authority representing the
SIndustry shall be selected from those members of the Industry whose
chief product is handkerchiefs; two members from those whose chief
product is silk underwear; two members from those whose chief
product is ladies' cotton underwear; two members from those whose
chief products are women's and children's dresses; and two members
from those whose chief products are table and fancy linens. The
manner of selecting such Code Authority members shall be governed
by such plan of procedure as may be proposed by the Code sponsors
to the Deputy Administrator within thirty (30) days after the
effective date hereof and thereafter approved by the Deputy
3. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall:
(1) impose no inequitable restrictions on membersLip, and (2) sub-
mit to the Administrator true copies of its articles of association,
by-laws, regulations and any amendments when made thereto, to-
Sgether with such other information as to membership, organization
and activities as the Administrator may deem necessary to effectuate
:;. the purposes of the Act.
S 4. In order that the Code Authority shall at all times be truly
i?. representative of the Industry and in other respects comply with the
Provisions of the Act, the Administrator may provide such hearings
pd': as he may deem proper; and thereafter, if he shall find that the Code
SAuthority is not truly representative or does not in other respects
:l: comply with the provisions of the Act, may require an appropriate
j modification of the Code Authority.
5. Nothing contained in this Code shall constitute the members
Sof the Code Authority partners for any purpose. Nor shall any
S member of the Code Authority be liable in any manner to anyone
i for any act of any other member, officer, agent or employee of the
Code Authority. Nor shall any member of the Code Authority be
Liable to anyone for any action or omission to act under the Code,
except for his own wilful malfeasance or non-feasance.
S6. If the Administrator shall determine that any action of' :TfO
Code Authority or any agency thereof may be unfair or unjust'Et ]
contrary to the public interest, the Administrator may require th.
such action be suspended to afford an opportunity for investigatio|:i.
of the merits of such action and further consideration by the Code
Authority or agency pending final action, which shall not be effective":i
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days notice to him of intention to proceed
with such action in its original or modified form.
7. The Code Authority shall obtain from members of the Industry
such information and reports as are required for the administration l
of the Code. In addition to the information required to be sub-
mitted to the Code Authority members of the Industry shall furnish
such statistical information as the Administrator may deem neces- .
sary for the purposes recited in Section 3 (a) of the National Indus- n:
trial Recovery Act to such United States and Puerto Rico Govern- :
ment agencies as he may designate, provided that nothing in this:
Code shall relieve any member of this industry of any existing
obligations to furnish reports to any Government agency. '
8. Subject to such rules and regulations as may be issued by the I
Administrator, the Code Authority shall have the following powers
and duties in addition to those authorized by other provisions of |
this Code: 3
(a) To insure the execution of the provisions of this Code and to-
provide, subject to rules and regulations established by the Admin- -:
istrator, for the compliance by the members of the Industry with"
the provisions of the Act: Provided, however, that this shall not be i-
construed to deprive duly authorized Government agencies of their I
power to enforce the provisions of this Code or the Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration of the Code.
(c) To obtain through a confidential agency from members of the
Industry periodical reports in such form and at such times with
respect to wages, hours of labor, conditions of employment, num-:
ber of employees, and such other matter pertinent to the purposes
of this Code as the Code Authority, with the approval of the Admin-
istrator, may require for the administration of this Code, and to
submit reports to the Administrator in such form and at such times
as he may require in order that the President may be informed as
to the observance or non-observance of the Code and to further.
effectuate the policies of the Act.
The confidential agency shall be in no way engaged in the industry
nor connected with any member thereof, and all reports received by, i
it shall be held as secret and confidential, except that they shall bh
made available to the Administrator.
Such agency shall analyze, digest, and consolidate such reports
and shall disclose only general findings based thereon. Such general
findings shall be made available to the Code Authority and such ::
members of the Industry as have assented to this Code.
(d) To use such trade association and other agencies, including":
the Piece Rates Commission, as it deems proper for the carrying outr
of any of its activities provided for therein, and to pay such agencies
Sthe cost thereof; provided, that such agencies shall at all times be
Subject to and comply with the provisions of this Code; and provided
further, that nothing herein shall relieve the Code Authority of any
of its duties and responsibilities thereunder.
(e) To make recommendations to the Administrator for the co-
ordination of the administration of this Code with such other codes,
if any, as may be related to or affect members of this industry.
(f) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions to
govern members of the Industry in their relations with each other
or with other industries; measures for industrial planning, and
stabilization of employment; and including modifications of this
Code which shall become effective as part hereof upon approval by
the Administrator after such notice and hearing as he may specify.
(g) To initiate, consider, and make recommendations for the modi-
fication or amendment of this Code, which when approved by the
Administrator shall become binding upon all members of the in-
dustry as part of this Code.
(h) The Code Authority shall obtain from manufacturers lists
of all contractors, sub-contractors or delivery agents to whom they
supply materials for processing or manufacture into products of the
Industry, whether by such contractors, sub-contractors or delivery
agents or others; from contractors, lists of all subcontractors to whom
they supply materials for such purposes; and from all members of
the Industry, lists of every home-worker to whom they supply ma-
terials for such purposes, including the address or best location pos-
sible of each home-worker. The Code Authority shall obtain reports
of all changes in such lists.
(i) Within ninety days following the date this code becomes effec-
tive the Code Authority shall register all sewing machines used in
homes in the manufacture or processing of products of this industry
on or before April 1, 1934, with the serial number of each such
machine, its type and age, the name and address of the owner and
of the person operating such machine during the year preceding
April 1, 1934, and the name and address of any person holding a
chattel mortgage or conditional sale contract for such machine.
(j) To make complaint to the President on behalf of the industry,
as authorized by the Act, whenever any article is being imported into
the United States in substantial quantities or increasing ratio to
Porto Rican production of any competitive article or articles and on
such terms or under such conditions as to render ineffective or seri-
ously to endanger the maintenance of this Code.
(k) The Code Authority shall obtain from every member of the
Industry certified reports based on two or four week operations,
giving a complete list of all home-workers employed by such member
whether the work done by the home-worker was done by hand or
on machine, the number of items or articles so produced and the
amount paid to each home-worker.
S (1) (1) It being found necessary in order to support the adminis-
Stration of this code and to maintain the standards of fair competition
Ik established hereunder and to effectuate the policy of the Act, the
Code Authority is authorized:
(a) To incur such reasonable obligations "as are necessary "'al
proper for the foregoing purposes, and to. meet such obligations ta
of funds which may be raised as hereinafter provided and wh..*
shall be held in trust for the purposes of the Code;
(b) To submit to the Administrator for his approval, subject to;
such notice and opportunity to be heard as he may deem necessart-.i
(1) an itemized budget of its estimated expenses for the foregoing'
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of-the2::'
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable con-:
tribution as above set forth by all members of the industry, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
2. Each member of the industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Author-
ity, determined as hereinabove provided, and subject to rules and reg-
ulations pertaining thereto issued by the Administrator. Only mem-
bers of the industry complying with the code and contributing to"
the expenses of its administration as hereinabove provided shall be
entitled to participate in the selection of members of the Code Au-
thority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
3. The Code Authority shall neither incur nor pay any obligation
in excess of the amount thereof as estimated in its approved budget,
except upon approval of the Administrator; and no subsequent
budget shall contain any deficiency item for expenditures in excess
of prior budget estimates except those which the Administrator
shall have so approved.
ARTICLE VIII-N.R.A. LABEL 5
1. Any kind of article manufactured or processed subject to the
provisions of this Code shall bear an N.R.A. label or an authorized.
substitute therefore to symbolize to purchasers of said goods the
conditions under which said goods have been manufactured, if the ...
Code Authority, subject to the approval of the Deputy Adminis-.'i
trator for Puerto Rico, shall so determine.
2. Subject to such rules and regulations as the Administrator may:. !i
from time to time prescribe, the Code Authority shall have their :
exclusive right in this industry to issue and furnish said labels toil
the members thereof, and/or to negotiate with the Code Authority-a
administering the Code from which the members of the industry:: !
in Puerto Rico are exempted, to secure and distribute labels issued; .,
by the latter Code Authority.
3. Each label shall bear a registration number especially assigned 4i
to each member of the industry by the Code Authority, and shall -
remain attached to all such goods when sold to the retail distributor,!
See paragraph 2 (2) of order approving this Code.
S.4. Subject to the approval of the Administrator, the Code Author-
ity shall establish rules and regulations and appropriate machinery
for the inspection, examination and supervision of the practices of
Members of the industry using such labels for the purposes of ascer-
taining the right of such members of the industry to the continued
use of said labels; of protecting purchasers in relying on said labels;
Sand of insuring to each individual member of the industry that the
symbolism of said label will be maintained by virtue of compliance
with the provisions of this Code by all other members of the industry
S using said label.
5. The charge made for such labels by the Code Authority shall at
all times be subject to supervision and orders of the Administrator
and shall be not more than an amount necessary to cover the actual
reasonable cost thereof, including actual printing, distribution,
administration, and supervision of the use thereof as hereinabove
ARTICLE IX-TRADE PRACTICES
1. The standards of fair competition for the industry with refer-
ence to pricing practices are declared to be as follows (for definition
of terms see subsection (d)
(a) The Principle.-
1 Destructive price cutting is an unfair method of competition
and is forbidden at all times, irrespective of the existence of an
(2) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices but it is intended
that sound cost estimating methods should be used;
(3) When an emergency exists as to any given product, sale below
the lowest reasonable cost of such product, in violation of subsection
(c) hereof is forbidden.
(b) Normal provision (Cost estimating methods).-The Code
Authority shall cause to be formulated methods of accounting and
cost finding and/'or estimating capable of use by all members of the
industry and shall submit such methods to the Administrator for
review and possible disapproval. Full details and instructions con-
cerning such methods shall be made available to all members of the
industry and to the Administrator and thereafter all members shall
utilize the principles of such methods.
(c) Emergency provision (lowest reasonable cost).-When an
emergency exists, the Code Authority may cause an impartial agency
to investigate costs and to determine the lowest reasonable cost of
S the product affected by the emergency. Such determination shall
exclude all cost elements set forth in, and shall be in all respects
subject to, such rules and regulations as may be issued by the Ad-
i ministrator, and shall become effective upon his approval or modi-
fication after such notice and opportunity to be heard as he may
&. prescribe. The Code Authority or the Administrator may, from
S time to time, cause such determinations to be reviewed or reconsidered
Sand appropriate action taken.
(d) Definitions.-An Emergency exists whenever the Admin-
Sistrator determines that destructive price cutting is rendering in-
effective or seriously endangering the maintenance of the provimiq9
of this Code. ....i
"Destructive price cutting "-- ..
(1) When no emergency exists, the term shall have the meanigig
declared in rules and regulations promulgated by the Administratoa:..
on recommendation of the Code Authority or on his own motion; ., i.
(2) When an emergency exists, the term shall mean any sale i .~.1
violation of subsection (c) hereof;
(3) It shall be an absolute defense to any charge of destructive::
price cutting, if an impartial agency, designated or approved by the
Administrator, shall find: i
(aa) That the price complained of is justified by existing com-
petition, evidence of which has been reported to the Code Authority;
(bb) That the price complained of is justified as a method of dis- :if
posal of distress merchandise, dropped lines or seconds, provided
the Code Authority has been notified of the intention to dispose of
the same; or :i
(cc) When no declared emergency exists, that the member charged i
with destructive price cutting has in good faith endeavored to make
proper use of the announced cost estimating methods.
2. No member of the industry shall, for the purpose or with the
intent of evading any of the provisions of this code:
(a) Allow deductions to be made from the actual invoice by rea- i
son of banking or exchange charges;
(b) Ship products to the mainland from Puerto Rico at other than
f.o.b. factory terms, or pay for freight charges on raw materials
shipped by a continental manufacturer to be manufactured or proc-
essed wholly or in part by any member of this industry: I
(c) Furnish without charging therefore not less than cost, rib-
bon or ribbons, findings or other trimming to any "manufacturer"
or continental manufacturer ";
(d) If a contractor or subcontractor pay premiums for fire or
theft insurance on products of a manufacturer or continental manu-
facturer above said contractor's or subcontractor's individual in-
terest without charging the manufacturer or continental manufac-
turer for such premiums paid.
3. No member of the Industry shall secretly offer or secretly make
any payment or allowance of rebate, refund, commission credit, un-
earned discount, or excess allowance, whether in the form of money :.
or otherwise; nor shall a member of the Industry secretly offer or i!
extend to any customer any special service or privilege not extended
to all customers of the same class, for the purpose of influencing .
4. No member of the Industry shall wilfully induce or attempt to" .
induce the breach of existing contracts between any manufacturer .
or continental manufacturer and his contractor or sub-contractor '
by any false or deceptive means, or interfere with or obstruct the :
performance of any such contractual duties or services by any such
5. No contractor or manufacturer shall agree to manufacture, I
samples for less than production cost plus overhead cost.
S 6. No member of the Industry shall agree to manufacture any
Products of the Industry on terms in excess of ten (10) days from
date of shipment.
7. No merchandise shall be manufactured for any member of the
Industry in any prison, prison camp, penitentiary, reformatory or
other correctional institution or in any place by means of prison
Labor except in any such institution which has subscribed to, or
when any such institution hereafter subscribes to, this Code or any
compact, or has entered into or may hereafter enter into a binding
agreement of any other nature which satisfies the Industry that
merchandise produced in such institution or by the inmates thereof
will not be sold except upon a fair competitive basis with similar
merchandise not so produced. Nothing in this Section shall be con-
strued to supersede or interfere with the operation of the Act of
Congress approved on January 19, 1929, being Public No. 669 of the
70th Congress and entitled "An Act to Divest Goods, Wares and
Merchandise Manufactured, Produced or Mined by Convicts or
Prisoners of Their Interstate Character in Certain "Cases ", which
S Act is known as the Hawes-Cooper Act, or the provisions of any
S State or Territorial legislation enacted, under or effective upon the
effective date of the said Hawes-Cooper Act, the said effective date
being January 19, 1934.
1. This Code, and all the provisions thereof, are expressly made
subject to the right of the President, in accordance with the provi-
sions of Sub-section (b) of Section 10 of the 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 but without limita-
tion, to the right of the President to cancel or modify his approval
of this Code or any conditions imposed by him upon his approval
2. This Code, except as to provisions required by the Act, may be
Modified in such manner as may be indicated by the needs of the
S public, by experience, or by changes in circumstances, such modifi-
cation 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 President.
:,*. ARTICLE XI-- MONOPOLIES
1. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.
1. Any employer who at any time shall manufacture any article
or articles subject to the provisions of this Code, shall be bound by
all the provisions of this Code as to all employees engaged in whole
or in part in such manufacture. In case any employee shall be
UNIVERSITY OF FLORIDA
196 3 1262 08486 8065
engaged partly in such manufacture and pIa'lyeti
of goods of-another character, this Code. shall n.ly
portion of such employee's work as is performed in:
the manufacture of articles subject to this Code. d:
ARTICLE XIII-EnFECTIVE DAT
1. This Code shall become effective three weeks after iis;
Approved Code No. 474.
Registry No. 231-16. .. Li