Code of fair competition for the men's neckwear industry


Material Information

Code of fair competition for the men's neckwear industry as approved on March 24, 1934
Physical Description:
p.467-482 : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Neckties -- Law and legislation -- United States   ( lcsh )
Industries -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


General Note:
"Approved Code No.363 ; Registry No. 248-1-02".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004856050
oclc - 63654342
System ID:

Full Text








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Approved Code No. 363

Registry No. 248-1-02

This publication is for sala by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
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Approved Code No. 363



As Approved on March 24, 1934


An application having been duly made, pursuant to and in frill
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Men's Neckwear Industry, and hearings
having been duly held thereon and the annexed report on said Code,
containing findings with respect thereto having been made and di-
rected to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved subject to the fol-
lowing condition:
The schedule of minimum piece rate wages provided in Article
III shall be subject to further study both by this Administration and
by the Code Authority for the purpose of showing whether it is
fully in the public interest and in the interest of the industry and of
labor. To this end, the Code Authority shall report to the Adminis-
trator thereon within sixty days after the effective date hereof with
recommendations for the continuation, elimination, or modification
of any or all of such wage rates, and the Administrator reserves the
right upon the basis of such recommendations or upon the basis of
hearings if he shall prescribe them, or otherwise, to provide for
such modification or exception as he shall deem to be in the public
interest and in the interest of the industry and of labor.
Administrator for Industrial Recovery.
Approval recommended:
Division Administrator.
March 24, 1934.
48726--425-144-34-1 (467)


The White House.
SIR: This is a report of the Hearing on the Code of Fair Competi-
tion for the Mens Neckwear Industry conducted in Washington,
D.C., on August 31, 1933, and subsequent conferences held for the
purpose of obtaining a code for the Men's Neckwear Industry under
Title I of the National Industrial Recovery Act.


The manufacture of men's neckwear involves these principal op-
erations: cutting the fabrics, operating or sewing, turning and press-
ing. The cutter has ordinarily worked on a time-rate basis while
employees in the other classifications of work have been employed
on a piece-work basis. In past years there has been a decided
tendency away from the machine process and toward the employment
of the hand operator. Most of the ties now manufactured are sewn
by hand and to a large extent on a home work basis.
The years from 1929 to 1931 witnessed a decided improvement in
the quality of men's neckwear. Despite the tendency toward pro-
duction of handmade ties, the number produced in 1931 was only
about 13 per cent below the output of 1930. The value of total pro-
duction in 1931, however, was about 37 per cent below that of 1929.
Nearly 50 per cent of the production of this industry is still man-
ufactured in New York City and most of the concerns in that city
operate under a union agreement. In recent years, however, the
proportion of men's neckwear produced in New York has been
steadily declining. In 1929 the State of New York produced 65
per cent of the total value of production of four-in-hand ties as com-
pared with about 53 per cent in 1931. It is probable that this de-
cline has continued since 1931. The neckwear manufacturers out-
side of New York are small but are increasing in importance. Penn-
sylvania produced 6.5 per cent of the total value of neckwear pro-
duced in the United States in 1931 as compared with 3.5 per cent
of the total value in 1929. Similar gains occurred in Massachusetts,
Missouri, California, Illinois and Ohio.
The Manufacturing establishments in this industry are small and
competition is keen. In 1929 the industry was composed of 331 es-
tablishments employing an average of 26 workers each. By 1931
there were 368 establishments employing an average of 22 workers
each. The average number of employees in the industry in 1929 was
8,565 as compared with 8,155 in 1931. This represents a relatively
slight decline. Nevertheless, the industry has a serious unemploy-
ment problem that is closely related to the decline in New York pro-
duction and the rise in production in other areas mentioned. Thus,


while there were only 410 fewer workers employed in the entire in-
dustry in 1931 as compared with 1929, a decline of 1,092 employed oc-
curred in New York State alone. Since there were 3,166 neckwear
workers employed in New York State in 1929, it appears that 25 per
cent of the New York neckwear workers had been displaced by 1931.
Unemployment thus represents a serious problem in the industry in
New York where a surplus labor supply exists and seasonal fluctua-
tions are apparently more pronounced than in other centers. It is
probable that there is relatively less unemployment in the smaller
and newer centers of neckwear manufacture where wages paid are
lower than in New York City.
The Code of Fair Competition for the Men's Neckwear Industry
as revised and approved may be summarized as follows:
Article I defines certain important terms used in the Code.
Article II prescribes the maximum hours of work for employees in
the industry.
Article III specifies minimum weekly and piece-rate wages and
conditions under which said wages are payable in the industry.
Article IV contains the general labor provisions.
Article V constitutes the Code Authority for the industry and de-
fines its duties and powers.
Article VI prohibits certain unfair trade practices.
Article VII provides for the modification of the Code.
Article VIII states the purpose to prohibit use of the Code or any
provisions thereof to permit monopolies or monopolistic practices or
to eliminate, oppress or discriminate against small enterprises.
Article IX states the general policy that price increases shall be
limited as far as possible to actual increases in the seller's cost.
Article X designates the effective date of the Code.


The proposed Code of this industry, as originally submitted, pro-
vided for occupational classifications of work and specified certain
minimum hourly rates applicable in each occupation. At the Public
Hearing, however, a large group of manufacturers withdrew their
assent to the proposed Code, and proposed considerably higher
minimum hourly rates which, they insisted, would make the Code
more equitable. At that time no serious objection was raised to
the principal of occupational classifications and the application of
minimum hourly wage rates to the different classes of work.
Members of the industry in New York City having themselves
collective agreements with labor insisted that the minimum hourly
rates demanded by manufacturers of men's neckwear located outside
of New York City were not high enough. Manufacturers outside of
New York maintained that the productivity of their employees was
below the average for the industry and therefore opposed the higher
rates demanded by the New York group. Definite data showing
relative productivity of employees in various producing areas was
not however presented. This difficult difference between manufac-
turers in the high wage and low wage areas delayed the development
of the Code for several months. Finally, through numerous and
prolonged conferences, substantial agreement between both groups


of manufacturers and a fairly unanimous assent to the Code was
obtained as the result of the adoption of the piece-work basis of
employment and the minimum rates specified in Article III of
this Code. The final working out of the minimum piece rate wages
in a manner which would be the most satisfactory to all members
of the industry and in a way to admit to some degree of flexibility,
represented the major objective of the final series of conferences.
Provision is made in Article III for changes in rates of pay by
the Code Authority subject to approval of the Administrator, and
for establishing rates of pay for work not provided for in the Code,
consistent nevertheless, with Code standards and subject to the Ad-
ministrator's approval. Provision is further made in Article III
giving effect to terms of collective agreements between employers and
employees entered into prior to the date of approval of the Code
unless changed by mutual agreement, in which event such change
may not result in wages lower than those prescribed in Article III
or in hours longer than those prescribed in Article II. With certain
exceptions, a minimum wage of thirteen dollars ($13.00) per week
is fixed for northern areas and twelve dollars ($12.00) per week for
southern areas. Cutters shall be paid at not less than the minimum
weekly rate of thirty-five dollars ($35.00).


The unemployment problem in the men's neckwear industry in-
volves the absorption of displaced workers, a large number of whom
are in New York City. A need of equal importance is that of more
regular employment in the industry as a whole but this need is most
acute in New York City. Seasonal unemployment, however, is an
industry-wide problem. The thirty-six (36) hour work week pro-
vided for in the Code will have the effect of spreading and regulariz-
ing employment in the industry. It is important, however, to assure
"outside production areas a sufficient work force to meet seasonal
Accordingly, the Code provides that not over four (4) hours over-
time above the thirty-six (36) hour week may be worked for not
more than eight (8) weeks in a six months' period in instances where
a manufacturer cannot supply his needs through hiring of unem-
ployed neckwear workers in his community. Such overtime is to be
paid for at regular piece-rates. The wage provisions in the Code
are a necessary corollary of the hours of work established.
Certain exceptions to the maximum thirty-six (36) hour work
week are made for outside sales forces, engineers, repair shop crews,
electricians, and other specified nonproductive employees.


Considerable home work has existed in this industry. Members
of the industry were desirous of eliminating home work after a cer-
tain specified adjustment period, believing the elimination of home
work to be the first step in the effective enforcement of the labor
provisions of the Code. It is accordingly provided in Article IV
that no member of the industry shall give out work to be done in


homes on and after June 15, 1934. Adequate provision is made for
the control of homework prior to that date with a view to making
certain that immediate progress is made looking toward the even-
tual prohibition of homework.


By Article IV of the Code, no person under sixteen (16) years of
age may be employed in the industry and no person under eighteen
(18) years of age may be employed in dangerous or hazardous

The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of,Tit.le I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of
industry for the purpose of cooperative action among the trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and super-
vision, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees, and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of Title I of the Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7. and Sub-
section (b) of Section 10 thereof; and that the applicant group is
an industrial group truly representative of the aforesaid Industry;
and that said association imposes no inequitable restrictions on
admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons this Code has been approved.
MARuc 24, 1934.


Purposes.-To effect the policies of Title I of the National Indus-
trial Recovery Act, the following provisions are established as a
Code of Fair Competition for the Men's Neckwear Industry, and
shall be the standard of fair competition for such industry and shall
be binding upon every member thereof.


1. The term industry as used herein includes the manufacture
and sale by the manufacturer, contractor or jobber of men's and
boys' neckwear (excluding knitted and leather ties).
2. The term member of the industry includes, but without
limitation, any individual, partnership, association, corporation, or
other person engaged in this industry. either as an employer or on
his own behalf.
3. The term employee ". as used herein includes anyone engaged
in the industry in any capacity, receiving compensation for his serv-
ices, irrespective of the nature or method of payment of such
4. The term "employer as used herein includes anyone by whom
any such employee is compensated or employed.
5. The terms President". "Act ". and "Administrator as used
herein shall mean respectively, the President of the United States,
Title I of the National Industrial Recovery Act, and the Adminis-
trator for Industrial Recovery.
6. The term Southern Section of the United States" as used
herein shall include the States of Alabama. Arkansas, Florida,
Georgia, Louisiana, Mississippi. New Mexico. North Carolina, Okla-
homa, South Carolina. Tennessee, Texas and Virginia.
7. The term "manufacturer" as used herein includes, without
limitation thereto, all those who manufacture products in the indus-
tries from their own inaterial, in a factory or establishment main-
tained and operated by them.
8. The term "jobber" as used herein includes without limitation
thereto all those for whom and.'or under whose direction or orders
products in the industries are manufactured, in whole or in part,
y contractors and/or other manufacturers, and who also act as
wholesale distributors of such products.
9. The term "contractor" includes without limitation thereto,
all those who manufacture products in the industries from material
provided for them by manufacturers, jobbers, or others.

1. Except as hereinafter provided, no employee shall be permitted
to work in excess of thirty-six (36) hours in any one week, except


that employees may be permitted to work four (4) hours overtime
per week for a period not in excess of eight (8) weeks during each
six months period of each calendar year, wherever, a manufacturer
cannot supply his needs by employment of unemployed neckwear
workers in his community. Such six-months periods shall commence
on January 1 and July 1 of each calendar year.
All members of the industry who permit employees to work over-
time in accordance with the provisions of this Section shall immedi-
ately report to the Code Authority the number of workers so
employed and the factors that have made overtime employment
2. The maximum hours fixed in the foregoing Section shall not
apply to outside sales forces, engineers, repair shop crews, elec-
tricians, firemen, watchmen, shipping help, janitors, charwomen,
scrub-women and others similarly employed, and outside crew
other than those engaged in manufacturing operations, provided,
that any employee as enumerated above who works in excess of
forty (40) hours in any one week shall be paid for such excess hours
at a rate equal to the normal hourly wage rate, based upon a forty
(40) hour week. The Code Authority shall within ninety (90)
days of the effective date, report to the Administrator with recom-
mendations concerning the maximum hours which should be worked
by any of the foregoing classes of employees, so that the Code
Authority may determine whether this provision shall be changed,
subject to the approval of the Administrator.
3. No office employee shall be permitted to work in excess of forty
(40) hours in any one week, except that such employees may be per-
mitted to work a maximum of five (5) hours overtime per week for
a period of not to exceed eight weeks during each six-months period
of each calendar year, and provided further that all such overtime
be paid for at the regular hourly rate. Such six-months periods
shall commence on January 1 and July 1 of each calendar year.
4. The maximum hours fixed in the foregoing Section shall not
apply to employees engaged in an executive or supervisory capacity,
nor to foremen not engaged in any productive operations when such
employees are earning $35.00 per week or more.
5. No employer shall knowingly permit, any employee to work
for any time which when totaled with that already performed with
another employer, or employers, in this industry exceeds the max-
imum permitted herein.
6. Any employer who does the work of an employee shall be sub-
ject to the provisions of this Code as to hours of labor.

1. Except as hereinafter provided, no employee shall be paid at
less than the rate of $13.00 per week of thirty-six (36) hours. No
employee employed in the Southern Section of the United States
shall be paid at less than the rate of $12.00 per week for thirty-six
(36) hours.
'See paragraph 3 of order approving this Code.


2. This Article establishes minimum rates of pay which shall
apply, irrespective of whether an employee is actually compensated
on a time rate, piece work or other basis.
3. A person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmity, may be employed on
light work at a wage below the minimum established by this Code,
if the employer obtains from the state authority, designated by the
United States Department of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall
be stated in the certificate. Such authority shall be guided by the
instructions of the United States Department of Labor in issuing
certificates to such persons. Each employer shall file monthly with
the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximum hours of work for
such employee.
4. Apprentices shall receive at least the regular piece work rates
provided for herein, provided, however, that all employees employed
as apprentices are paid at not less than the rate of Ten Dollars
($10.00) per week of thirty-six (36) hours; and provided, further,
that at no time shall the total number of apprentices in the employ
of any one employer exceed 10% of such employer's total number
of employees. The period of apprenticeship shall be strictly limited
to eight (8) weeks.
5. The following schedule of minimum piece rate wages shall be
standard for the industry and, except as hereinotherwise provided,
no member of the industry shall pay less than the following rates:
Hand-made ties, hemmed: Per docen' Machine-made margin 2-piece
Hemming ---- ----- $0.13 shape-Continued Per dozen
Piecing-------------- .03 Turning a n d pressing
Slip stitching--------- .45 pockets____---- _______ $0.075
Piecing pressing -------- .03 Turning-------------- .085
Pressing --------------- .10 Pressing --------------- .05
Hand-made ties, lined: Neck stitching_--------- .0325
Sewing margin lining__ .20 Machine-made unlined 2-piece
Piecing--------------- .03 shape:
Turning pockets ------ .04 Hemming--__------___ .0975
Pressing pockets-------- .04 Piecing----------------- .0325
Slip stitching-------- .45 Running up------------ .075
Piece pressing--- .03 Piecing pressing__- .0275
Pressing ------------- .10 Turning----------- .08
Machine-made pocket, lined: Pressing-------- ______- .OS
Operating: Neck stitching -------- .0325
Linina-----_---- .0975 French tie:
Piecing------------ .0325 Sewing points and piec-
RuiiIilnLu up --_. 0775 ing--------------- .10
Pocket turning---------- 0275 Running up with stay___
Pocket pressing --------- .0275 Turning--------____- .05
Piecing pressing--_ 0275 Pressing------ ----- .05
Pressing-------------- .OS Press joints and joining_ .02
Turning--------------- .08 General:
Machine-made margin 2-piece Wide hemming, one side- .0325
shape: Wide hemming, both
Piecing pressing ------- .0275 sides----------------- .055
Sewing lining---------- .1825 Tackers ------------- .0325
Piecing-------------- .0325 Label sewers----------- .0425
Running up ---------- .0S5
Where rates for operations or for styles not covered by the above
classifications, become necessary, the Code Authority, subject to the


approval of the Administrator, shall establish proper minimum rates
consistent with the above. Pending the adoption of piece rates for
styles not-covered by this Code, members of the industry shall adopt
piece rates for the manufacture of such styles consistent with the
rates contained in this Code.
If the total direct labor cost to any member of the Industry for
the manufacture of each item under the provisions of this Code is
equal to, or greater than, the total direct labor cost, calculated in
accordance with the piece-work rates above indicated, for the opera-
tions actually performed by such member of the Industry on such
item, then such member shall be deemed to have complied with the
provisions of this Section.
6. No cutter shall be paid at less than the rate of thirty-five dollars
($35.00) per week.
7. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.
8. (a) Where an employer is bound by the terms of a collective
agreement, concluded prior to the date of approval of this Code, to
pay other minimum or piece-rate wages higher than those set forth
in Article III, Section 1 to 6 inclusive, or to observe other hours
lower than those provided in Article II of this Code, nothing con-
tained in this Code shall be deemed to replace the terms of such
collective agreement, unless said agreement is changed by mutual
consent. In no case shall such changes result, in wages lower than
those prescribed in Article III, Sections 1 to 6 inclusive, or in hours
longer than those prescribed in Article II.
(b) Any agreement between employers and employees made in
accordance with the National Industrial Recovery Act may fix other
wages and hours than those set forth in this Code, provided that
no such agreement may fix maximum hours in excess of those pro-
vided in this Code or minimum piece-rates and wages lower than
those provided in this Code.
None of the provisions of this Article shall be construed or ap-
plied in such manner that the minimum wages provided herein be-
come maximum wages, and the duties delegated to the Code Author-
ity shall include a report with respect to the question of whether
the minimum wages provided herein are in fact tending to become
maximum wages.
(c) In no case shall piece-rates and or hour rates that were being
paid on October 6, 1933, in excess of the minimum provided by this
Code be reduced, except upon mutual consent between the employer
and his employees, and the approval of the Administrator.
(d) In every neckwear plant in the industry the employer shall
post copies of Article III, Section 8 (c), together with the piece-
rates above the minimum piece-rates in the Code, prevailing in such
plant on October 6, 1933, and each employer shall also file with the
Code Authority an identical list of such piece-rates prevailing in
such employer's plant on October 6, 1933.
9. (a) Changes in the piece-rates or week work rates set forth in
Article III, Sections 1 to 6 inclusive, may be made upon the recom-
mendation of the Code Authority and approval of the Administrator
after such notice and hearing as he may prescribe.


(b) The Administrator, upon recommendation of the Code Au-
thority may, after such public notice and hearing as he may deem
necessary, approve other piece work rates, week work rates and/or
methods of compensation than contained in this Code for members of
the industry who can justify such action and establish that they will
not obtain an unfair competitive advantage thereby.


1. On and after June 15, 1934 no home work shall be permitted by
members of the Industry. Prior to that date no member of the
Industry shall: (1) Increase the number of home workers employed
by him or make any replacements of home workers. (2) Fail to list
with the Code Authority within ten (10) days after the effective
date, the names and addresses of all home workers employed by him.
(3) Employ any home worker on a piece rate basis less than that
provided for in the C'ode for same or similar operations. (4) Issue
home work except directly to the individual who performs the pro-
ductive operations thereon.
2. No person under sixteen (16) years of age shall be employed
in the industry. No person under eighteen (18) years of age shall
be employed at operations or occupations which are hazardous in
nature or detrimental to health. The Code Authority shall submit
to the Administrator before June 1, 1934, a list of such occupations.
In any S:ate an employer shall be deemed to have complied with
this provision if he shall have on file a certificate or permit duly
issued by the authority in such State empowered to issue employ-
ment or age certificates or permits, showing that the employee is of
the required age.
3. (a) Employees shall have the right to organize and bargain
collectively, through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collectively 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 g.
(c) Enmployers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
4. Every employer shall provide for the safety and health of his
employers at the place and during the hours of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six (6) months after the
effective date of this Code.
5. No provisions in this Code shall supersede any law within any
State which imposes more stringent requirements on employers as to
age of employees, wages, hours of work, or as to safety, health, or
sanitary conditions, or insurance, or fire protection, or general work-
ing conditions, than are imposed by this Code.


6. Each member of the industry shall be furnished, by the Code
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
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 modi-
fications of, or exemption or exception from the Code permits any
person to pay lower wages, or work his employees longer hours, or
establish conditions of employment less favorable to his employees
than those prescribed by the provisions contained in such official copy
of the provisions of this Code, the Code Authority, on the request of
such person, shall furnish him with certified copies of such modifica-
tions, exemption or exception in sufficient number for posting along
side of such official copies of Code Provisions. No member of the
Industry shall display or furnish any incorrect copies of such pro-
visions, directions, modifications, exemptions or exceptions. Nothing
in this section shall be construed to relieve any member of the indus-
try from compliance with the requirements of Article III, Section 8
(d) hereof.


1. There shall forthwith be constituted a Code Authority consisting
A. Nine (9) representatives of the industry or such other number
as may be approved from time to time by the Administrator to be
selected as hereinafter provided.
B. One representative without vote to represent Labor to be ap-
pointed by the Administrator upon the nomination of the Labor
Advisory Board.
C. Such additional members without vote not to exceed three, as
the Administrator may appoint to represent such groups or such
interests or such governmental agencies for such periods, as he may
2. The industry members of the Code Authority shall be selected
as follows:
Four (4) of the members representing the Industry shall be
selected by the Men's Neckwear Manufacturers of New York City,
from among members of the Industry located in New York City;
and five (5) members shall be selected by members of the Industry
located outside of the city of New York. The nine (9) members of
the Industry so selected, and the method of their selection shall be
certified to the Administrator by the Men's Neckwear Institute of
America, Inc., as members of the Code Authority.
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 membership, and (2) sub-
mit to the Administrator true copies of its Articles of Association,
By-Laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,


and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
4. In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
as he may deem proper; and thereafter if he shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority, or
any sub-Code Authority.
5. If the Administrator shall determine that any action of a code
authority or any agency thereof may be unfair or unjust or con-
trary to the public interest, the Administrator may require that such
action be suspended to afford an opportunity for investigation of the
merits of such action and further consideration by such code author-
ity or agency pending final action which shall not be effective unless
the Administrator approves or unless he shall fail to disapprove
after thirty days' notice to him of intention to proceed with such
action in its original or modified form.
6. Members of the industry shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by assenting to and
complying with the requirements of this Code and sustaining their
reasonable share of the expenses of its administration. Such rea-
sonable share of the expense of administration shall be determined
by the Code Authority, subject to review by the Administrator, on
the basis of volume of business and,'or such other factors as may
be deemed equitable.
7. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
acts 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 misfeasance or non-feasance.
8. The Code Authority shall have the following powers and duties
to the extent permitted by the Act.
(a) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accord-
ance with the powers herein granted, and to submit the same to the
Administrator for his approval, together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other information as to its activities as the
Administrator may deem necessary to effectuate the purposes of the
(b) To obtain from members of the industry as soon as the
necessary readjustments within the industry can be made, reports
based on periods of one, two or four weeks, or multiples thereof, for
use of the Code Authority and the Administrator in the adminis-
tration and enforcement of the Code, and for the information of
the President, and to give assistance to members of the industry in
improving methods, or in adopting a uniform system of accounting


and reporting. All individual reports shall be kept confidential and
only general summaries thereof may be published.
(c) To receive complaints of violations of this Code, make inves-
tigations thereof, provide hearings thereon and adjust such com-
plaints, and bring to the attention of the Administrator for prose-
cution, recommendations, and information relative to unadjusted
violations. The application of this section shall at all times be
subject to rules and regulations which may be issued by the
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
therein and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To coordinate the Administration of this Code with such
other Codes, if any, as may be related to the industry, or any sub-
division thereof, and to delegate to any other administrative author-
ity such power as will promote joint and harmonious action upon
matters of common interest.
(f) To secure an equitable and proportionate payment of the ex-
pense of maintaining the Code Authority and its activities from
those members of the industry who accept the benefits of the activ-
ities of the Code Authority or otherwise assent to this Code.
(g) To cooperate with the Administrator in regulating the use
of the N.R.A. Code Insignia solely by those employers who have
agreed to, and are complying with, this Code.
S(h) To establish or designate an agency on planning and fair
practices which shall cooperate with the Code Authority in develop-
ing fair inter- and intra-trade practices and "industrial planning,
including the regulation of employment and stabilization of em-
ployees for the industry.
(i) To initiate, consider and make recommendations for the modi-
fication or amendment of this Code.
(j) To designate three representatives, who, together with one
designated by the Labor Advisory Board to represent Labor, shall
constitute a rate committee, which committee shall report to the
Code Authority with respect to the provisions of Article III, Sec-
tion 5. Recommendations of such Rate Committee shall become
effective as a part of this Code upon the recommendation of the
Code Authority and the approval of the Administrator after such
notice and hearing as he may prescribe.
(k) To cause to be formulated an accounting system and methods
of cost finding and/or estimating capable of use by all members of
the industry. After such system and methods have been formulated
and approved by the Administrator, full details concerning them
shall be made available to all members. Thereafter all members
shall determine and/or estimate costs in accordance with the prin-
ciples of such methods.
9. In addition to the information required to be submitted to the
Code Authority as set forth in this Article, there shall be furnished


to government agencies such statistical information as the Admin-
istrator may deem necessary for the purpose recited in Section 3 (a)
of the National Industrial Recovery Act. Nothing in this Code
shall relieve anyone of any existing obligation to furnish reports to
government agencies.
The following practices constitute unfair methods of competition
for the members of the industry and are prohibited:
1. (a) To induce a breach of contract or agreement between any
member of the industry and his customers or between any member
of the industry and any other person with respect to materials, pur-
chases or sales.
(b) To secure or attempt to secure, directly or indirectly, from
employees of a competitor information concerning exclusive methods
of operation, style, designs or patterns.
2. (a) To allow purchasers or offer or make any allowance to any
purchaser of any secret commission, bonus, rebate, refund, credit, un-
earned discount, or subsidy of any kind, whether in the form of
money, services, advertising allowances or any other thing of value;
or the giving of premiums, except such articles as are commonly
used for advertising purposes.
(b) To give, permit to be given or offer to give, anything of value
for the purpose of influencing or rewarding the action of an em-
ployee, agent, or representative of another in relation to the business
of the employer of such employee, the principal of such agent or the
represented party, without the knowledge of such employer, princi-
pal or party. This provision shall not be construed to prohibit free
and general distribution of articles commonly used for advertising
except so far as such articles are actually used for commercial
bribery, as hereinabove defined.
3. (a) To sell irregulars or seconds as firsts with the intent, or
effect of deceiving the purchaser or the ultimate consumer.
(b) To fail to place on neckwear not of first quality such markings
as may be directed by the Code Authority indicating such neckwear
as either irregular or seconds on some portion of the neckwear
where it can be seen by a purchaser.
(c) To ship or deliver neckwear which does not substantially con-
form in quality and value with the sample submitted, or representa-
tion made prior to the securing of the order without the knowledge
or consent of the purchaser to such substitutions.
(d) To sell neckwear marked or branded falsely with the effect of
misleading or deceiving purchasers or the ultimate consumer with
respect to price, quality, quantity, grade, substance, origin or value
of merchandise.
(e) To designate material or content on any neckwear unless it
represents a substantial portion of the fabric of such neckwear.
4. To loan or send on memorandum any display strips.
5. (a) To imitate trade-marks, trade-names, slogans, or other
marks of identification of competitors, having a tendency to mislead
or deceive the ultimate consumer.
(b) To misrepresent facts with respect to a competitor or his prod-
uct in any material respect.


6. To guarantee purchasers against loss resulting from price de-
7. To accept the return of neckwear from any purchaser on the
ground of faded color or for any other reason as to quality, design, or
style except in instances of factory imperfection or defects or non-
compliance with the terms of the order.
8. To grant cash discounts in excess of 7/10 e.o.m. or 6/10/60 to any
9. To withhold from or insert in any quotation or invoice any state-
ment that makes it inaccurate in any material particular.
10. To give to any customer any product as a premium for the pur-
chase of products of this Industry, except as provided in Sections
2 (a) and 2 (b) of this Article.
11. (a) To accept orders which do not contain a final delivery date
which shall be within nine (9) months of the date of the order.
(b) The Code Authority shall initiate investigations and confer-
ences with a view to making recommendations to the Administrator
respecting a uniform sales contract.
12. To sell goods on other terms than f.o.b. city of origin. Delivery
charges prepaid by the manufacturer shall be added to the cost of the
goods to the buyer in the invoice. Nothing in this provision shall
prevent free local deliveries.
13. To ship goods on consignment, memorandum or guaranteed
sale, except under circumstances to be defined by the Code Authority
where peculiar circumstances of Trade require the practice.
14. To sell' any merchandise below his own individual cost. How-
ever, any member may meet the price competition of anyone whose
costs under the provisions of this Code are lower. For the purposes
of this provision, cost shall be determined in accordance with the
principles enumerated in such cost accounting system as is adopted
by the Code Authority pursuant to Article V, Section 8 (k) hereof.
(b) Defective goods known in the trade as irregulars", im-
perfects or "seconds" may be sold at less than cost, provided,
however, that such merchandise when sold shall be plainly and
visibly marked on each necktie and invoice.
(c) Goods discontinued from the line of the respective member
of the industry, and therefore no longer manufactured by such mem-
ber, may be sold at less than cost, provided that such goods are clearly
designated as "closeouts" in the sale and invoicing thereof.
(d) The Code Authority shall submit to the Administrator within
six (6) months after the effective date of this Code, a plan for regu-
lating the disposal of distress merchandise in a way to secure the
protection of members of the industry and to promote sound and
stable conditions in the industry. Such recommendations, upon
the approval of the Administrator after such notice and hearing
as he may prescribe, shall become a part of this Code and be bind-
ing on all the members thereof.

1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the pro-
visions of sub-section (b) of Section 10 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 the said
Act, and specifically, but without limitation, to the right of the Presi-
dent to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
2. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modifications to be based upon application to the Administra-
tor and such notice and hearing as he shall specify, and to become
effective upon approval of the President.


No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.


Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual cost
shall be delayed. But when made, such increases should, so far
as possible, be limited to actual additional increases in the seller's

This Code shall become effective upon the second Monday after
its approval by the President.
Approved Code No. 363.
Registry No. 248-1-02.


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