SApproved Code No. 118- Registry No. 217-1-06
NATIONAL RECOVERY ADMINISTRATION
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:. CODE OF FAIR COMPETITION
S FOR THE
COTTON GA MENT INDUSTRY
S -AS:. AlO ION NOVEMBER 17, 1938
:" PRESIDENT ROOSEVELT
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CODE OF FAIR COMPETITION FOR THE COTTON GARMENT INDUSTRY
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 my approval of a Code
of Fair Competition for the Cotton Garment Industry, and hearings
having been held thereon and the Administrator having rendered his
report containing an analysis of the said code of fair competition to-
gether with his recommendations and findings with respect thereto,
and the Administrator having found that the said code of fair com-
petition complies in all respects with the pertinent provisions of title
I of said act and that the requirements of clauses (1) and (2) of sub-
section (a) of section 3 of the said act have been met.
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 hereby adopt and approve the report, recommendations
and findings of the Administrator and do order that the said code of
fair competition be and it is hereby approved, subject to the following
A. A committee appointed by representatives of several of the
States having heretofore drafted a tentative code or compact con-
cerning prison labor, the purpose of which is the establishment of
fair competition between the products of prisons and the products
of competing private industry, and containing provisions the in-
tention of which is substantially the same as is hereinafter referred
to, the code or compact shall be deemed to be satisfactory under the
requirement in article VIII C of the within code if and so long as
the compact or code adopted by the States provides for and accom-
plishes the following in relation to the manufacture, sale, and distri-
bution of products made in whole or in part by prisoners:
1. The hours of labor of prisoners shall not be greater than the
hours prescribed in the code of fair competition of the competing
private domestic Industry.
2. Prison products when sold by the prison or through a con-
tractor, whether sold direct or through any agency, shall be sold not
lower than the current price prevailing in the market in which the
product is customarily sold-to wholesalers, retailers, or consumers
as the case may be.
3. Unless it requires a higher price than specified in paragraph 2,
the State shall be paid on all contracts for the labor of prisoners an
amount equal to the cost per unit for labor and overhead of the com-
parable product necessarily paid in competing domestic private
4. The hours of operation of productive machinery shall be not
more than is prescribed in the code of the competing private domestic
5. Nothing in said compact, or code shall affect in any way any
Federal act relating to prison-made products, or any State act passed
or effective under any such Federal act, if said acts are held con-
stitutional and valid.
6. A code authority set up in the compact shall have the power
to administer, supervise, and enforce said code and establish the
prices and costs of prison-made goods as required in paragraphs 2
and 3 above after conferring with the code authority of the affected
industry, from which decision an appeal shall be allowed to the
President of the United States.
7. The code authority set up in the compact, after an investiga-
tion which shall include a consideration of economic, trade, and
market conditions, shall (1) formulate such regulations as may be
consistent and lawful and as may be necessary to assure a diversifica-
tion of the output of "prison industries" in fair proportion to the
production of any competing private domestic industry affected,
and (2) prohibit the expansion of any existing prison industry which
is causing a disproportionate competition with any private domestic
8. Such other provisions as will assure a fair basis of competition
not inconsistent with the above.
B. That the application of section G of article IV be and hereby
is stayed as to members of the industry located in the State of Ken-
tucky and in those counties in the States of Illinois and Indiana
which border on the Ohio River for such period as the Adminis-
trator shall determine, which period shall not exceed four (4)
months from and after the effective date of the aforesaid Code of
Fair Competition for the Cotton Garment Industry, that during such
period the said members of the industry located in the State of
Kentucky and in those counties in the States of Illinois and Indiana
bordering on the Ohio River shall be included in the southern sec-
tion of the industry for the purposes of the aforesaid article IV,
that during such period the administrator shall hold such hearings
and cause such investigations to be made as he may deem necessary
to determine the classification of the above area for the purposes of
the aforesaid article IV and that prior to the termination of such
period, the Administrator shall determine the classification of the
said area for the purposes of said article IV of the said Code of
Fair Competition for the Cotton Garment Industry.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
November 17, 1933,
HUGH S. JOHNSON,
NOVEMBER 7, 1933.
The ,lVW te House.
SnI: A proposed code of fair competition for the Cotton Garment
Industry was submitted to the Administrator on July 20, 1933, and
public hearings were held on August 2nd and 3rd. The revision of
the code was then begun by the principal interested parties and a
number of subsequent hearings were held. Revised versions of the
code were resubmitted on September 6th, September 19th, and Sep-
tember 25th. The long delay which resulted before the code could be
recommended for approval has not been due to any irreconcilable
differences of opinion with contending factions refusing to give
ground. The delay has resulted almost entirely from the fact that
the Cotton Garment Industry has many ramifications and that time
has been required to work out code provisions which could equitably
apply to the different parts of a complicated structure and, more
particularly, which would reduce so far as possible conflicts of
The sponsoring organization for the code was the International
Association of Garment Manufacturers, which is also a federation of
smaller associations which represent subdivisions of the industry.
At the time of the hearings the International Association of Garment
Manufacturers had more than 275 members who were grouped in the
Work Garment Manufacturers Division.
Union-Made Garment Manufacturers Division.
Men's Shirt Manufacturers Division.
Men's Wash Suit Manufacturers Division.
Work Shirt Manufacturers Division.
Pajama Manufacturers Division.
Athletic Underwear Manufacturers Division.
Men's Collar Manufacturers Division.
Cotton Wash Dress Manufacturers Division.
Boy's Shirts and Blouse Manufacturers Division.
Waterproof Cotton Garment Manufacturers Division.
Heavy Cotton Outerwear and Combination Leather Garment
The number and variety of the articles thus manufactured seemed
sufficiently great. Since the first public hearings, however, the asso-
ciation, through direct membership or affiliations, has come to rep-
resent oiled cotton garments, nurses' and maid's uniforms, washable
service apparel and pants (chiefly of cotton content). The Code
according to the terms of Article II, covers the manufacture of
fourteen articles or garments. The International Association of
Garment Manufacturers appears to represent more than 75% of
the production of each article. It now has 395 members, with 110
applications for membership on file, and claims that the total vol-
ume of business of its members amounts annually to $332,000,000,
approximately 80% of the total production.
As was pointed out at the conclusion of the first hearings, the
Cotton Garment Code was presented for a trade association rather
than for an industry. Indeed, it was doubtful whether there should
be such an industry, at least with definitions as broad as those in the
Code. There were no codes for the Woolen Garment Industry or the
Silken Garment Industry. Codes had been presented for men's
clothing, for coats and suits and for dresses. The manufacturers
under those codes use wool, silk, and cotton. From the operation of
these codes the proponents of the Cotton Garment Code sought to ex-
clude all manufacturers whose products were chiefly of cotton content.
Even if disinterested efforts are made to put industries and their
subdivisions as logically and as fairly as possible under appropriate
codes, difficulties are certain to arise. Definitions cannot be written
so clearly and comprehensively as to eliminate all doubts and contro-
versies as to jurisdiction. Special difficulties are invited, however,
when a code is presented by a trade association which is a federation
of other trade associations and which naturally wishes to bring into
its membership as many units as possible. During the hearings such
a federation was justified on the principle that all articles which
would be manufactured under the aegis of the federation would con-
tain cotton and that the number of codes for the garment industries
would be reduced in number by grouping together a number of
industries or subdivisions.
One important reason, however, for the popularity of the Cotton
Garment Code-that is to say for the desire of certain industries to
come under it-was the expectation that the Cotton Garment Code
would be less onerous on manufacturers than any other code which
was adopted for any one of the needle trades. The hours proposed
were high and .the wages proposed were low. It is these hour and
wage provisions which have been responsible for the marriage de
convenance between cotton dresses and leather clothing, between
pants and nurses and maids uniforms, between pajamas and work
clothing, and between children's play suits and oiled cotton gar-
ments. Much of the delay experienced in the completion of this
code is attributable to the heterogeneous coverage of the Code and
to the fact that difficulties as to jurisdictions and prospects of unfair
competition have become apparent before the Code goes into effect.
Three examples of these difficulties may be cited: cotton wash suits,
pants, and linen dresses.
On the first two questions a number of hearings were held. The
third question will have to be dealt with shortly, for the makers of
cotton wash dresses have been accustomed to make linen dresses.
Linen dresses, however, will probably be under the Dress Code. This
difficulty will have to be dealt with later by putting all dresses under
the same code with appropriate wage differentials covering the man-
ufacture of wash dresses which requires less skill than does the
manufacture of more dressy dresses.
The difficulty was much the same in the case of men's wash suits.
These, when chiefly of cotton content, were excluded from the Men's
Clothing Code which went into effect on September 11th, and the
expectation was that they would be covered by the Cotton Garment
Code. It appeared, however, that many men's clothing manufac-
turers made cotton wash suits. They would thus be under two codes.
It appeared also that the cotton wash suit manufacturers, located
largely in New Orleans, made linen suits which were cut and sewn
at the same time as their cotton suits. After several conferences and
hearings, the New Orleans and other wash suit manufacturers joined
with the Men's Clothing Code Authority in urging the desirability
of the Men's Clothing Code covering all men's summer clothing,
washable and nonwashable, with appropriate wage differentials
recognizing that a different class of labor from that employed in the
manufacture of woolen suits can be used in the manufacture of
summer clothing and that the seasonal nature of the summer cloth-
ing industry may require tolerance in certain periods, in respect of
the number of hours per week that may be worked.
The difficulty as to pants does not lend itself to such an easy
solution. Work pants and men's and boys' pants in chief content
of cotton are under the Cotton Garment Code. Single knee pants
and single pants" are under the Men's Clothing Code. Promptly
as the Men's Clothing Code went into effect, on September 11th,
complaints were made by manufacturers under the Men's Clothing
Code that other manufacturers making precisely similar articles
claimed that they were chiefly of cotton content and therefore came
under the Cotton Garment Code, with forty instead of thirty-six
hours as the maximum week and 321/2 instead of 400 per hour as
the minimum wage. Some of these manufacturers, it should be
noted, had been members of one of the associations proposing a
Men's Clothing Code. They were then men's clothing manufac-
turers but when it appeared that the Men's Clothing Code would
have high standards they became cotton-garment manufacturers.
This difficulty, it appeared, could not be satisfactorily dealt with
by a change of definitions. Manifestly the object of the Recovery
Act-the spread of employment and the increase of wages-would
be negatived by placing all pants manufacturers on a forty hour and
32Y/2 basis. Manifestly, also, employers could not be expected to
continue under the Men's Clothing Code if other employers in direct
competition and producing the same article were permitted to oper-
ate under a code which was more favorable to them. That would
be unfair competition of a most vicious character.
It was proposed, therefore, that the Administrator designate a
pants expert who would investigate the extent and character of the
manufacture of pants under the Men's Clothine Code and the extent
and character of the manufacture of pants which the Men's Clothing
Code Authority claimed was unfair competition and then make
recommendations as to administrative determinations in particular
cases-that is, determination as to whether individual manufacturers
were properly under the Men's Clothing Code or under the Cotton
Garment Code. Such an appointment has been made. This action
does little more than anticipate the action contemplated by Article
II, Section D of the Cotton Garment Code, which provides that if
there is a dispute as to whether an employer is subject to the provi-
sions of the Cotton Garment Code or another code, the dispute shall
be settled by the two code authorities involved, and in the event of
a disagreement, by the Administrator. In this case, because quick
action was desirable, it was assumed that the code authorities would
be unable to agree and steps have been taken to secure the expert
advice which will make it possible for the Administrator to render
equitable decisions. It may be added that this procedure was sug-
gested three weeks before it was accepted by the representatives of
the International Association of Garment Manufacturers, who in-
sisted on two hearings before they consented to an investigation by
In this connection attention should also be called to the provision
of Article II of the Code which specifically provides for prompt
hearings for the further review of the status of cotton wash dresses,
cotton wash suits, and cotton pants, in order to determine whether
the definitions shall be modified or eliminated, and the disposition
to be made of these subdivisional industries. That the Administra-
tor is empowered thus to act is the inarticulate premise of any code,
but because of the considerations set forth above it is proper in this
case to make the premise articulate.
It is not possible here to discuss in detail all the matters which
were relevant to determination of what, for the time being, the Cotton
Garment Code should cover. Illustrations have been given of the
more important problems which had to be settled. After the hear-
ings and while the code was in process of final formulation, a code
was presented for aprons and nurses' uniforms. It was evident,
however, that many manufacturers in the International Association
of Garment Manufacturers made aprons and nurses' uniforms, and
that a separate code for these articles would mean that some manu-
facturers of them would be under one code and some manufacturers
under another code. This particular problem was easily solved by
the affiliation of the Apron and Nurses' Uniform Manufacturers'
Association with the International Association of Garment Manu-
facturers. The pajama and shirt problems had been settled the same
way, with the respective trade associations retaining their identity
and having representation on the Cotton Garment Code Authority.
For a time the Rain Wear Industry sought to come under the Cotton
Garment Code on the theory that rain wear has a cotton content.
Some of the principal manufacturers of rain wear do the bulk of
their production in rubber articles which are not wearing apparel,
and a designation of manufacturers of rain wear as manufacturers
of rubber seemed more satisfactory than any other solution.
HOURS AND WAGES
It is obvious that with the difficulties described above in respect
of definitions, the determination of the minimum wages and maxi-
mum hours was not a simple problem. It would not have been
simple even if there had not been made any demands for differentials
and preferential treatment.
In most branches of the industry long hours have been worked
and low wages have been paid. The earnings of shirt workers have
been the subject of a special investigation by the Bureau of Labor
Statistics. In 1927 the average annual earnings of shirt workers
were $752; in 1931 they were $574; and in 1932, $486. The wages
are so low that the proposed minimum for the northern section of the
country of $13.00 per week is 78% higher than the median weekly
wage reported by the Bureau of Labor Statistics and should affect
75% of all the workers. In the Heavy Outer Garment Industry
wage levels are higher. In the Work Shirt Industry wage levels
are even lower than in shirts and the Code provides that the Work
Shirt Division shall have an opportunity to make out a case for it
not being able to pay its employees the minimum which the Code
provides. Save in the case of the Sheep Lined and Leather Gar-
ment Industry it seemed impossible at the present time to differenti-
ate in respect of minima for unskilled workers or to afford any
protection to skilled workers above the minimum scale.
There are no accurate estimates as to the extent of unemployment
which has existed in the Cotton Garment Industry and no figures
which would indicate the number of workers who would be unem-
ployed as a result of a limitation of the number of hours. Conse-
quently the number of hours per week has been fixed rather arbi-
trarily at forty. In certain sections of the country this will be a
drastic reduction for some of the subdivisions have been working
fifty and sixty hours per week. The Code Authority is asked to
report promptly on the reemployment which results from the reduc-
tion to forty hours so that the Administrator may decide whether
there should be a further reduction.
It was necessary, in the Cotton Garment Code, to make provisions
for both learners and incapacitated employees so that there could
be some deviation from the minimum wage scale. With respect to
the first group it was argued that employers could not afford to pay
the minimum to unskilled workers; that the increased labor costs
which would result from a minimum for skilled workers was as
much as, and perhaps more, than the industry could bear. Unless
carefully limited, however, permission to employ learners will result
in widespread evasions of the minimum-wage provisions. Conse-
quently the Code, as recommended, limits the number of learners
that may be employed in any one establishment at the same time,
to 10% of the total number of employees; defines learners as those
that have not been engaged in the industry for more than six weeks
and stipulates that if on a piecework basis the learner earns more
than the 75% of the minimum wage to which he is entitled during
the learning period, then he shall receive his earnings.
The problem of substandard and incapacitated employees also had
to be dealt with. If no provisions had been inserted in the Code, the
tendency would have been for employers to dismiss substandard and
aged employees in order to secure more efficient workers who, on the
basis of the prevailing piece rates, would be able to earn the minimum
which the Code stipulates. Obviously such a result should be
avoided and the code, therefore, permits 10% of the total number
of employees to be in a substandard class.
These provisions as to learners and substandard employees were of
great interest to Southern manufacturers. The International Asso-
ciation of Garment Manufacturers has many members in the South
and at the public hearings spoke for the entire industry with its truly
representative character not challenged. The only voice of protest
raised at the public hearings was on behalf of Kentucky and its in-
clusion in the Southern section of the country.
The delay which occurred between the conclusion of the public
hearings and the recommendation of the Code for approval afforded
an opportunity for Southern protests to gain in number and volume.
The protests came from individual manufacturers and from the
Southern Garment Manufacturers Association, which claimed to be
much more representative of Southern manufacturers than was the
International Assocation of Garment Manufacturers. These protests
alleged that the unproductive nature of Southern labor warranted
a larger differential than 2%1/ per hour, which the Code proposed
to allow. There was a strong demand also for a liberalization of the
learner and substandard employee provisions. It was alleged that
the employees of many Southern manufacturers are, in comparison
with employees of Northern manufacturers, so inefficient that if on
the same piece-rate basis a Northern employee earns the minimum
the Southern employee will not, and the difference will have to be
made up by the employer.
Individual Southern manufacturers and the Southern Garment
Manufacturers Association were given several hearings and every
opportunity to present data in support of their allegations. Little
data was presented. There were many general allegations that
Southern manufacturers as a class would find it hard to operate
under the Code, but in no case was it shown convincingly from pay
rolls or production methods that an employer needed more than 10%
learners or 10% substandard employees or that his average workers
were less productive than Northern workers. At the same time, the
Administrator received many protests from individual Southern
manufacturers against any further differential for the South. These
manufacturers said that they were able to operate successfully under
the provisions which were contemplated and that if other Southern
manufacturers found these provisions onerous, the reason was their
own inefficiency and not the severity of the provisions.
In the absence of definite data there was nothing before the Ad-
ministrator to justify any more preferential treatment of Southern
manufacturers than that which was acceptable to the International
Association of Garment Manufacturers. The Code as recommended,
however, instructs the Code Authority to make prompt investigations
and to report to the Administrator the effects of operations under
its provisions. Specifically in the case of substandard employees it is
provided that "the Cotton Garment Code Authority shall report to
the Administrator, from time to time, as to the effects of the operation
of this provision both generally and in cases of individual hardship
so that the Administrator may determine whether or not the pro-
visions of this section shall be changed or exceptions granted here-
under." This, it is believed, affords Southern manufacturers-
and other manufacturers as well-a way of securing relief if, be-
cause of peculiar situations, they are entitled to relief and their
securing it will not permit them to compete unfairly.
The same principles apply as to the line which is drawn between
the Northern and Southern Sections of the country. The line be-
tween North and South, as drawn in the code, is the line proposed to
the Administrator as the considered judgment of the manufacturers
represented on the Code Committee of the International Association
of Garment Manufacturers with one exception: The inclusion of cer-
tain factories in the vicinity of Paducah, Kentucky, in the Southern
section for a six months' period. The original definition omitted
Kentucky from the South and many protests were received. Pro-
tests were also received against the inclusion of Maryland in the
North. On the other hand, if Maryland had been included in the
South there would have been protests from Pennsylvania manu-
facturers. If Kentucky were in the South, there would be protests
from Indiana, Missouri, and West Virginia. Protests have already
been received against the temporary arrangement for Paducah.
Any line which is drawn will be subject to criticism; for no matter
where the line is drawn manufacturers a few miles on either side of
it, employing the same class of labor and making the same kind of
articles, will have wage scales which differ by the amount of the dif-
ferential which the Code allows. There were no data before the
Administrator which justified him in disregarding the recommen-
dation of the International Association of Garment Manufacturers
in its code as submitted and arbitrarily ruling that the South should
include certain states. The Code as recommended, however, in-
structs the Code Authority to report to the Administrator with re-
spect to differentials between the Northern and Southern sections of
the country and the Administrator may determine whether or not
the line should be redrawn. The South which is entitled to a dif-
ferential is not the historic South, the climatic South, or the Solid
South. It is the South in which labor is less productive than in the
North. A line can be drawn intelligently only if data on lower
productivity are available. If Southern manufacturers present ade-
quate data to the Administrator, then the Administrator can elimi-
nate any injustices which now exist. On the basis of the sentimental
and historic arguments which were made at the hearings, it was
impossible to act.
At one of the later public hearings the Southern Garment Manu-
facturers Association raised the question as to the truly representa-
tive character of the International Association of Garment Manufac-
turers in respect of the South. The Southern Garment Manufac-
turers Association asked for an amendment of the Code so that the
South would be represented on the Code Authority.
It would seem undesirable to write in the Code any provisions for
sectional representation. The Administrator, under the Code, re-
serves full powers to reexamine the constitution of the Code Author-
ity and to order its reconstitution so as to make it more representa-
tive. The Administrator has authority to appoint one or more
members to the Code Authority and he will exercise that power to
appoint for the time being to the Code Authority, a representative
of the Southern Garment Manufacturers Association so that this
Association will be in a position to bring to the attention of the
Administrator any situation which will warrant the latter in using
the power which he reserves to himself under Article IX, Section D,
of the Code.
THE CODE AS REVISED AND RECOMMENDED
The Code, as revised and recommended, may be summarized as
Article I states the purposes of the Code.
Article II gives the definitions.
Article III establishes forty hours as the maximum number of
hours per week for manufacturing employees in the Industry and
Article IV provides a minimum wage of 321/2 per hour in the
Northern section and 300 per hour in the Southern section, with
special provisions for operators and cutters in the Sheep Lined and
Leather Garment Industry and with carefully drafted safeguards
covering the exceptions of learners and substandard employees. It
also defines the Southern section of the country and provides for
various investigations as to the effects of the wage and hour provi-
sions of the Code.
Article V limits the use of productive machinery, except cutting
machinery, to one shift.
Article VI contains the Code's general labor provisions and sets
forth the mandatory provisions of Section 7 (a) of the National
Industrial Recovery Act.
Article VII abolishes home work after three months, with one or
two minor exceptions.
Article VIII deals with the sale of prison-made goods.
Article IX sets up the Cotton Garment Code Authority and
confers on it certain powers.
Article X contemplates the presentation of additional codes of
fair-trade practices for the subdivisional industries under the Code.
Article XI sets forth certain unfair-trade practices.
Article XII permits the Code Authority, upon approval of the
Administrator, if it is deemed necessary, to put into effect certain
provisions with reference to NRA labels.
Article XIII reserves to the President the right to amend, cancel,
and modify any provision of the Code.
Article XIV declares that nothing in the Code shall be construed
to promote monopolies.
Article XV permits applications for exemptions from or a stay
of the Code.
Article XVI warns against unnecessary price increases.
Article XVII makes the effective date of the Code the first Mon-
day following the first Wednesday after the date of approval by
The Code as submitted by the International Association of Gar-
ment Manufacturers contained a provision prohibiting members of
the industry from manufacturing or causing to be manufactured,
or acquiring, selling, or distributing prison-made garments and from
purchasing textiles or raw materials from penal, correctional, or
reformatory institutions after certain date.
Protests were received from various prison officials and at least
one Governor against including in a Code of Fair Competition
any provision interfering with the sales and distribution of prison-
made goods. The protestants argued that it was essential from
a social point of view that prisoners be taught a trade and be kept
busy; that the provision proposed was an indirect attempt to regu-
late functions of a State which are exclusively within the prerog-
atives of a State; that it was impossible for a Code under the
National Industrial Recovery Act to interfere with a manner in
which States attempt to care for the health and well-being of their
wards and that the proposed provision would unfairly deprive the
States of a proper source of revenue and directly destroy the value
of a large amount of invested capital in the form of a plant, good
will, and general investment.
On the other hand, the proponents of the Code argued that the
competition of prison-made goods with goods made by free industry
was sufficiently large and so concentrated in certain cases as to permit
prison producers to dictate the price of certain articles and thus ad-
versely to affect the wages, hours, and conditions of labor in the free
branch of the industry. Two examples adduced by the proponents
of the Code to show the extent of the concentration of prison pro-
duction were those of work shirts and work pants. In 1932 prisons
produced and sold on the open market almost 20,000,000 work shirts.
The free factories in that year produced 62,000,000 work shirts, or
about 75% of the total. In the same year, prisons produced almost
7,000,000 work pants, while the free factories in the industry pro-
duced 27,000,000 work pants, or about 80% of the total. It was con-
tended by the International Association of Garment Manufacturers
that the prison products in each case naturally affected market prices
and were in a large measure responsible for the substandard labor
conditions in the industry.
The interested prison officials did not refute the contention that
prison competition inevitably undermines standards prevailing in
the free branch of the industry, nor that such continued competition
would endanger the success of a Code of Fair Competition which
aimed to raise standards higher than they are at the present time.
Certain prison officials presented their cases with an eye on their
own special problems and leaned on the broad shoulders of States'
Rights and the plea ad hominem that idleness leads to moral break-
down and violence.
The proponents of the Code, on the other hand, argued that they
were making no attempt to limit the State in its activities or to do
more than bind those properly subject to their Code of Fair Compe-
tition. They conceded idleness of prisoners to be an evil but argued
that their proposed provisions did not shut the door to educational
and vocational training and all other prison activities which did not
compete with free industries. In this connection it should be noted
that nine states at present do not sell prison products in the open
market. These states include such thickly populated areas as New
Jersey, New York, Ohio, and Massachusetts. Nine States have
adopted the system of producing for State use alone. Therein lies
one solution to the problem. Other solutions which have been put
into practice, are the diversification of products made in prisons and
increasing emphasis on truly educational and vocational activities
instead of on unfair profit seeking factory production.
The proponents of the Code have an unassailable position in argu-
ing that it would be impossible for manufacturers under the Code
to stay in business if prison goods continue unfairly to compete with
goods produced in free plants; that this competition in the past has
led to sweat-shop and substandard conditions in the open branch of
the industry and that unless checked it will be impossible for manu-
facturers to meet the standards of operation of the Code and stay in
business. The proponents of the Code are on unassailable ground
as well, in arguing that the elimination of prison competition in Cot-
ton Garments will not make more acute social problems which many
prisons have seriously attempted to solve but which other prisons
have been holding up as a shield to cloak profit seeking and
The Administrator finds that:
(a) The Code complies in all respects with the pertinent provisions
of Title I of the Act, including without limitation subsection (a) of
Section 7 and subsection (b) of Section 10 thereof; and that
(b) The International Association of Garment Manufacturers
imposes no inequitable restrictions on admission to membership
therein and is truly representative of the Cotton Garment Industry;
(c) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I of the
National Industrial Recovery Act.
I recommend that the Code be approved.
HUGH S. JOHNSON,
CODE OF FAIR COMPETITION FOR THE COTTON GARMENT
To effectuate the policy of Title I of the National Industrial Re-
covery Act and aid in reducing and relieving unemployment, improv-
ing the standards of labor, and eliminating competitive practices
destructive of the interests of the public, employees, and employers,
the following provisions shall constitute the Code of Fair Competi-
tion for the Cotton Garment Industry and shall be binding upon
every member thereof.
A. As used in this Code the term "Cotton Garment Industry"
means and includes the production by any of the following processes:
(a) cutting, (b) creasing, (c) sewing (all or part of the garment),
d) trimming, (e) pressing, (f) finishing, (g) examining and in-
specting, (h) boxing, or all of them, of any article or garment known
as (1) work clothing, work garments, work pants and children's
play suits; (2) men's shirts, including knitted outer shirts and polo
shirts; (3) boys' shirts and blouses; (4) boys' wash suits; (5) work
shirts of any material, including flannel shirts; (6) pajamas and
nightshirts; (7) men's collars; (8) cotton wash dresses; (9) oiled
cotton garments; (10) men's and boys' pants in chief content of
cotton; (11) sheep lined and leather garments; (12) nurses and maids
aprons and uniforms; (13) washable service apparel; (14) men's
cotton wash suits.
The products covered by Section A, paragraphs 8, 10, and 14, are
included in this Code pending the prompt holding of such further
hearing on such notice as the Administrator in his discretion may
fix, and the final determination of whether the definitions of any of
them shall be modified or eliminated or whether any of the sub-
divisions shall continue to be included in this Code.
B. Cotton Wash Dresses" as used herein means and includes
those house dresses and dresses made in chief content of cotton which
in the custom and practice of the trade are merchandised in what
is known in the trade as the house dress or wash dress departments
of recognized department stores and other retailers of women's gar-
ments, and which cotton dresses, under the established custom and
practice of the trade, are customarily bought from the manufacturer
by, or sold by the manufacturer to, the buyer of house or wash
dresses. And the term Cotton Wash Dress Industry" as used
herein means and includes that industry engaged in the manufacture
of such cotton wash dresses.
C. The term "Washable Service Apparel" as used herein is de-
fined to mean cotton coats; trousers; waitresses', nurses', and maids'
service garments, aprons, service caps, and other kindred service
garments manufactured for direct distribution to linen supply service
companies, hotels, hospitals, institutions, and other consumers.
D. If and when, because of the character of any product made by
any employer, or by any subdivisiorial industry, there arises any
dispute as to whether such product is covered by the provisions of
this or another code, the code authorities concerned will report to
the Administrator the code under which such product properly
belongs and in the event that the code authorities are unable to
agree within a reasonable time, the Administrator may, after notice
and hearing, decide under which code the product or subdivisional
industry manufacturing the same is covered.
E. The term "member of the industry includes anyone engaged
in the industry as above defined, either as an employer or on his
F. The term "Manufacturer" as used herein means and includes
(1) anyone who buys materials and manufactures them under the
processes named in subsection A of Article II hereof into finished
garments, (2) anyone who buys the materials and performs the
cloth-cutting operation and contracts other operations, retaining
legal title to the goods, or (3) a contractor who receives materials
in cut form and does the sewing operations and any additional
operations (except cutting).
G. The term contractor as used herein means and includes any-
one engaged in the making of cut materials into finished products
suitable for use but not intended for his own distribution, who owns
and operates his own plant, hires his own labor for that purpose
but who receives cut-piece goods from another for the purpose o0
making same into finished garments and who in the operation of
his business renders this service in the course of an independent
occupation, the relationship being such that legal title to the goods
to be manufactured is retained by the one for whom the contractor
is finishing the product.
H. The term "manufacturing employee" as used herein means
and includes anyone who is engaged in (a) cutting, (b) creasing,
(c) sewing (all or part of the garment) (d) trimming, (e) pressing,
(f) examining, (g) inspecting, or (h; finishing, of any garment
produced in the industry.
I. The term nonmanufacturingg employee as used herein means
and includes all persons engaged in the Cotton Garment industry,
but not included in any of the classifications of subsection H above.
J. The term employer means anyone by whom any such em-
ployee is compensated or employed.
K. The terms "President ", "Act ", and "Administrator as used
herein mean respectively the President of the United States, the
National Industrial Recovery Act, and the Administrator of said
A. No manufacturing employee shall be permitted to work in
excess of 40 hours in any one week, or more than 8 hours in any one
day, provided, however, that the Cotton Garment Code Authority
shall, immediately after the effective date begin an investigation
under such rules and regulations as to reports as the Code Authority
may require and the Administrator approve, to determine whether
or not the 40-hour week provision of this section is resulting in in-
creased employment, and the said Code Authority shall report its
findings on this question to the Administrator not later than 60
days after effective date, so that the Administrator may determine
whether or not the provisions of this Article shall be changed. In
respect of cutters, the Code Authority, immediately after the effec-
tive date, shall begin an investigation under such rules and regula-
tions as to reports as the Code Authority shall determine, to ascer-
tain whether the 40-hour week provision of this Article as to cutters
unduly handicaps factory operations and whether or not overtime
should be recommended as to cutters. The Code Authority shall
report thereon within 60 days after the effective date hereof, so that
the Administrator may determine whether or not the provisions of
this Article shall be changed.
B. Within 60 days after effective date hereof, the Cotton Gar-
ment Code Authority shall report to the Administrator as to the
result of the maximum hours for the Sheep Lined and Leather Gar-
ment Industry provided for in the preceding paragraph, so that the
Administrator may determine whether or not the provisions of this
Article shall be changed.
C. No office employee (including accounting, clerical, and steno-
graphic help) shall be permitted to work in excess of 40 hours per
week averaged over any three months' period. Secretaries, factory
department heads, and executives earning more than $35.00 per
week are exempted from this provision.
D. As to all nonmanufacturing employees other than those in-
cluded in paragraph C immediately preceding, the Cotton Garment
Code Authority shall, on or before March 1, 1934 submit to the
Administrator a recommendation as to maximum hours for these
E. The provision for maximum hours constitutes the maximum
hours of labor per week for the employee covered so that under no
circumstances will such an employee be employed or be permitted
to work for one or more employers in the industry in the aggregate
in excess of the prescribed number of hours in a single day or
A. Except as hereinafter provided, no employee (except actual
learners in the industry during a period not to exceed six weeks'
apprenticeship and outside employees) shall be paid at less than the
rate of 30 cents per hour per 40-hour week when employed in those
states included within the southern section of the industry, nor at
less than the rate of 321,/ cents per hour per 40-hour week when
employed in those states included within the northern section.
B. In the Sheep Lined and Leather Garment Industry, no manu-
facturing employee shall be paid at less than the rate of 35 cents
per hour per 40-hour week; no operator shall be paid at less than
the rate of 45 cents per hour per 40-hour week; and no short knife
cutters shall be paid at less than the rate of 75 cents per hour per
C. The number of learners employed at any time by any mem-
ber of the Cotton Garment Industry in his plant or factory shall
not exceed 10 percent of the total number of manufacturing em-
ployees in said plant. Each learner shall receive not less than 75
percent of the minimum wage, provided, that if on a piecework basis
a learner earns more, then he shall be paid what he earns; and pro-
vided, further, that the maximum six weeks' period as to learners
shall apply to the total period of apprenticeship in the industry
whether in one manufacturing plant or another. Any member of
the industry may apply to the Code Authority for a modification of
this provision, and upon showing of extreme hardship the Adminis-
trator may grant such modifications after review and report with
recommendations by the Code Authority.
D. Within three months from the effective date, the Cotton Gar-
ment Code Authority shall report so that the Administrator may
determine whether or not the provisions of section C shall be
E. Each member of the industry shall make periodic reports, as
required by the Cotton Garment Code Authority, showing in each
instance the number and names of learners employed and the
extent of time so employed.
F. Employees partially incapacitated by age, injury, or infirmity
shall be exempted from the minimum-wage provisions; provided,
however, that such employees shall be paid no less than other em-
ployees in the same factory proportionately to the amount or char-
acter of the work they do; and, provided further, that the number
of such privileged employees shall not exceed 10 percent of the total
number of manufacturing employees engaged in the same factory.
Employers shall report monthly to the Cotton Garment Code Au-
thority the names of those included in this class and the reasons
therefore, and the Cotton Garment Code Authority shall report to
the Administrator within three months and from time to time as to
the effect of the operation of this provision both generally and in
cases of individual hardship, so that the Administrator may deter-
mine whether or not the provisions of this section shall be changed
or exceptions granted hereunder.
G. For the purpose of this Article, the states which shall be
included in the southern section are: Alabama, Arkansas, Florida,
Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Okla-
homa South Carolina, Tennessee, Texas, Virginia. All other states
and the District of Columbia shall be included within the northern
section of the industry, except that for a period of not to exceed
six months after the effective date of this Code the northern-section
provisions of this Article shall not apply to factories operating under
this Code which have been established between January 1, 1933, and
September 1, 1933, in the area within 50 miles of the northern bound-
aries of Tennessee and Arkansas.
H. The Cotton Garment Code Authority shall, from time to time,
report to the Administrator as to the effect of the operation of Sec-
tion G, so that the Administrator may determine whether or not the
provisions of that section shall be changed. The differentials pro-
vided for in this Article as between the northern and southern sec-
tions shall not apply to the Sheep Lined and Leather Garment
I. No changes in piece-rates and no increases in the amount of
production or work of week workers shall be made for the purpose
of evading the benefits to manufacturing employees prescribed by
this Code in respect of wages and hours of employment. All
requirements in respect of such increases shall be reported to the
Cotton Garment Code Authority and failure to so report shall
constitute a prima facie violation of this section.
J. The Work Clothing and Work Shirt Industries of the Cotton
Garment Industry, may present to the Administrator such mem-
oranda as the said Work Clothing and Work Shirt Industries may
deem proper in relation to the effect of the minimum wage scale of
this Article and other economic factors, upon the sale price of work
clothing and work shirts manufactured in such industries, so that
the Administrator, after due notice and hearing, may determine
whether any changes shall be made in the wage provisions of this
Code with respect to the Work Clothing and Work Shirt Industries.
K. This Article establishes a minimum rate of pay, regardless of
whether an employee is compensated on a time-rate, piecework, or
L. The Cotton Garment Code Authority shall, as soon as prac-
ticable, set up a committee to investigate the wage scales for cutters,
to determine whether the wages paid said cutters tend to effectuate
the purposes of the National Industrial Recovery Act. The said
committee shall also investigate differentials in wages paid to other
employees receiving above the minimum to determine whether such
differentials permit unfair competition in the Cotton Garment
M. Nothing in this Code shall be construed to interfere with, alter,
change, or abrogate any existing contract between employer and
employee in respect of wages above the minimum, or hours below
the maximum herein provided.
ARTICLE V-MACHINERY CONTROL
A. No member of the Cotton Garment Industry shall operate pro-
ductive machinery used in any of the processes enumerated in Sec-
tion A of Article II, except cutting machinery, for more than one
shift of 40 hours per week. If any member of the Cotton Garment
Industry has customarily operated productive machinery on a double-
shift basis, said member of the industry may make representations
to the Cotton Garment Code Authority as to the facts and conditions
requiring more than a single-shift basis in his particular plant or
plants and may request a special exemption to operate on a double-
shift basis; it being agreed that such application may be granted by
the Administrator upon recommendation of the Code Authority,
but only for the purpose of meeting contractual obligations existing
on the effective date, or of preventing discharge of employees, or of
otherwise removing any unusual difficulties or hardships in the
application of this Article. Any deviations from the provisions of
this section, however, shall be deemed a violation of the Code unless
the said application is made and approved as provided herein.
ARTICLE V---GENERAL LABOR PROVISIONs
A. No person under 16 years of age shall be employed in the
B. Employees shall have the right to organize and bargain collec-
tively 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 collective bargaining or other mutual aid or protection.
C. 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
D. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
E. Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employers regu-
lating the age of employees, wages, hours of labor, or health, fire, or
general working conditions than under this Code.
F. Employers shall not reclassify employees or duties of occupa-
tions performed by employees so as to defeat the purposes of the Act.
G. Each employer shall post in conspicuous places accessible to
employees full copies of this Code or all portions of this Code con-
cerning labor and working conditions.
ARTICLE VII-HOME WORK
A. After three months from the effective date, no member of the
industry shall have any sewing-machine work done on any garment or
any part thereof in the private home of any worker, but all such
sewing-machine work shall be done in the plant of the member of the
industry producing such garment; provided, however, that any mem-
ber of the industry may apply to the Cotton Garment Code Authority
for exemption from the provisions of this Article for what is known
in the trade as turning collars which have a laundry wash in the
factory before shipping, provided, also, that home work on hand
embroidery, which is incidental to the manufacture of cotton gar-
ments, may continue, and that within three months the Cotton Gar-
ment Code Authority shall report on the home-work problem so that
the Administrator, after due notice and hearing, may determine
whether or not this provision shall be changed. Each member of the
industry shall report at once to the Cotton Garment Code Authority
the names of any individuals employed under the provisions of this
section and the reasons for such employment, and after the effective
date, no member of the industry shall increase the number of persons
so employed prior to July 15, 1933.
ARnICLE VIII-PRISON LABOR
A. No member of the industry shall manufacture or cause to be
manufactured, acquire, sell, or distribute any garment, textiles, or
supplies produced by prisoners, except prisoners on parole, or pro-
duced in any tax-maintained penal or reformatory institutions;
except that any member of the industry who, prior to September 1,
1933, entered into a bona fide contract for the purchase of any
garments or textiles made by prisoners, may, until January 1, 1934,
accept delivery of said garments or textiles included within the
terms of said contract, and may thereafter sell those particular
garments, or garments made from those particular textiles.
B. Provided, however, that the provisions of paragraph A are
hereby stayed until January 1, 1934, for the purpose of permitting
those states of the United States, which so choose, to formulate,
enter into, and make effective a compact or agreement, and thereby
satisfying the Administrator that merchandise produced in the penal
institutions of any state signatory to the said compact or agreement
(with the exception of goods, wares, and merchandise produced or
mined by any prison solely for the use of tax-supported institutions,
agencies, departments, or activities of any state or its political sub-
divisions) is manufactured, sold, and distributed only upon a fair
basis of competition with private industry.
C. When and so long as any penal institution, by subscribing to,
complying with, and making effective the Code or compact herein-
before referred to, or a binding agreement of any other nature, satis-
fies the Administrator that merchandise produced in whole or in
part in such institution or by the inmates thereof is being produced
and sold upon a fair competitive basis with similar merchandise not
so produced, the provisions of paragraph A hereof shall not apply to
any merchandise produced in such manner in the institution covered
by such agreement, but otherwise paragraph A hereof shall apply
to such prison-made products.
D. Any member of this industry or subsidiary thereof making any
contracts with prisons for labor of prisoners or prison products shall
report the facts in writing to the Administrator and file with the
Administrator a copy of any such contract.
E. The Cotton Garment Code Authority shall, as soon as practica-
ble after the effective date, make such rules and regulations as may
tend to effectuate the policy of the National Industrial Recovery Act
and aid in the observance of the provisions of this Code with respect
to the sale and distribution of cotton garments or parts thereof made
in whole or in part by the inmates of private or semipublic charita-
ble reformatory institutions other than prisons.
F. Nothing in this Article shall be construed to supersede or in
terfere with the operation of the Act of Congress approved January
19, 1929, entitled "An Act to Divest Goods, Wares, and Merchandise
Manufactured, Produced or Mined by Convicts or Prisoners of their
Interstate Character in Certain Cases", or the provisions of any
State legislation enacted or made effective thereunder.
A. Further to effectuate the policy of this Act, a Cotton Garment
Code Authority is hereby set up to cooperate with the Administrator
in the administration of this Code and shall be constituted as
B. The International Associations of Garment Manufacturers,
with the collaboration of the industries affiliated, shall select as mem-
bers of the Cotton Garment Code Authority one representative
from such of the following associations or subdivisional groups as
it may satisfy the Administrator are truly representative and
comply with the provisions of Title I of the National Industrial
1. The National Association of Shirt Manufacturers.
2. The National Boys' Blouse and Shirt Manufacturers' Asso-
3. The National Pajama Manufacturers' Council, Inc.
4. The Association of Collar Manufacturers.
5. The National Work Clothes Manufacturers' Association.
6. The Union Made Garment Manufacturers' Association.
7. The Work Shirt Manufacturers' National Association.
8. The National Sheep Lined and Leather Garment Association.
9. The Associated Pants Manufacturers of America.
10. The National Association of Cotton Dress Manufacturers.
11. The National Oiled Cotton Garment Manufacturers' Associa-
12. The National Association of Nurses and Maids Aprons and
13. Shirt Institute, Inc.
14. The National Association of Men's Shirts and Boys' Blouse
15. Associated Manufacturers of Washable Service Apparel, Inc.
And such other associations as may from time to time, with the ap-
proval of the Administrator, be placed under the provisions of this
Code. Alternates may be appointed to represent members unable
to be present, but all such members and alternates of the Cotton
Garment Code Authority shall in each case be persons actually
engaged in the operation of a business in the respective industries.
The Administrator may appoint four members on nomination of
the labor Advisory Board.
The Administrator, at his discretion, may appoint not more than
three additional members to represent the Administrator, and addi-
tional members to represent such groups or interests as he may deem
entitled to representation.
C. 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, together
with such other information as to membership, organization, and
activities as the Administrator may deem necessary to effectuate the
purposes of the Act.
D. 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.
E. The Cotton Garment Code Authority shall have the power to
make investigations and to conduct hearings to ascertain whether
members of the industry are complying with the provisions of this
F. The Cotton Garment Code Authority shall select its chairman,
may employ such personnel as may be required for the effective dis-
charge of its functions, and may set up such administrative com-
mittees as may be necessary to aid divisional industries in the ad-
ministration and observance of this Code.
G. Members of the Industry shall be entitled to participate in and
share in the benefits of the activities of the Code Authority and to
participate 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. The
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority, subject to review by the Admin-
istrator on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration. Expendi-
tures authorized by the Code Authority shall not exceed an amount
reasonably necessary for the administration of this Code.
H. Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose; nor shall any mem-
bers of the Code Authority be liable in any manner to anyone for
any act of any other member, officer, agent, or employee of the Code
Authority exercising reasonable diligence in the conduct of his duties
hereunder, nor be liable to anyone for any action or omission to act
under the Code, except for his own willful misfeasance or non-
I. The Code Authority shall have the following duties and powers
to the extent permitted by the Act, subject to the right of the Admin-
istrator on review to veto any action taken by the Code Authority:
(a) To adopt bylaws 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 effect the purposes of the Act.
(b) Set up rules and regulations governing the making of returns
and reports by members of the industry as to
2. Machine hours.
8. Labor hours and pay-roll account.
(The aforesaid reports shall be made not less than every three
months, and at such other times as the Cotton Garment Code Au-
thority may determine; provided that no member of the industry
shall have access to the confidential returns and data reported by the
individual members, but all such data shall be correlated, tabulated,
or otherwise presented in such manner as to avoid disclosure of indi-
vidual plant operations, except when its use is necessary to prove or
disprove a complaint or violation of this Code.)
(c) Prepare for, order, receive, collate, and analyze such addi-
tional reports as to any phase of the Cotton Garment Industry as
may be required from time to time by the Administrator for the pur-
pose of informing the President as to the observance of this Code or
the situation within the industry with respect to the operation
(d) Set up such commissions, bureaus, or committees as may be
1. To recommend to the Administrator the establishment of a sys-
tem of uniform cost accounting which upon approval of the Admin-
istrator shall be binding upon all members of the industry;
2. To investigate and make recommendations to the Administrator
concerning control or balancing of production distribution, and con-
sumption of products of the industry and the stabilization of the
industry with respect to production and employment;
3. To report to the Administrator with respect to differentials
between the northern and southern sections of the industry;
4. To investigate and report to the Administrator on the subject of
differentials as between urban and rural wage minimums or such
adjustments as may be necessary in connection therewith;
5. To aid in the adjustment of contracts made prior to August 1st
for future delivery where the costs of executing same are increased
through the operation of the National Industrial Recovery Act or the
provisions of this Code. it being interpreted as equitable and promo-
tive of the purposes of the Act that appropriate adjustments of such
contracts to reflect such increased costs be made. Any dispute arising
under this provision should be settled by amicable agreement, or if
that is not possible, should be referred to arbitration, and the Code
Authority shall offer all assistance possible;
6. To investigate and report to the Administrator, with such rec-
ommendations as may be deemed necessary, looking to the control in
this industry of undue expansion of productive machinery capacity;
7. To investigate and make such recommendations to the Presi-
dent as may tend to effectuate the National Industrial Recovery Act
and the provisions of this Code in respect to imports, or, upon in-
vestigation to make application to the President to exercise his
authority as to imports under Section 3 (e) of the National
Industrial Recovery Act;
8. To collaborate with members of the industry and with the
Administrator for the purpose of recommending from time to time
changes in or additions to this Code;
9. To prepare and present to the President for his approval such
additional Codes of fair trade practice as may be necessary or
expedient in the conduct of the industry or any of the particular
industries subject to this Code;
10. To do and perform all other acts necessary to carry out any
of the provisions of this Code or the provisions of the National
Industrial Recovery Act or the requirements of the Administrator
in connection with this Code;
11. To recommend to the Administrator through the Divisional
Code Authorities uniform systems of cost accounting which shall
be designed to effectuate fair competition in the divisional industries
subject to the aforesaid Code Authorities.
12. The Code Authority may recommend to the Administrator
provisions regarding the use of an N.R.A. label or insignia other
than that provided for in Article II and rules or regulations with
respect to the issuance and use of such insignia.
J. Except where otherwise provided herein, all recommendations
made by the Cotton Garment Code Authority shall, upon approval
of the President, become part of this Code and shall thereafter be
binding upon all those engaged in the industries subject to this Code.
K. All data, records, statistics, information, or other material
gathered by the Cotton Garment Code Authority shall at all times
be available to the Administrator. In addition to the information
required to be submitted to the Code Authority, there shall be fur-
nished to government agencies such statistical information as the
Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act.
L. Any power or authority delegated herein to the Code Authority
shall be subject to the right of the Administrator to review and
veto any action taken by the Code Authority; any particular provi-
tion or implied delegation herein to the contrary notwithstanding.
ARTICLE X-ADDITIONAL CODES
A. Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes in
circumstances or experience may indicate. It is contemplated that
from time to time supplementary provisions of this Code or addi-
tional Codes will be submitted for the approval of the President to
prevent unfair competition in price and other unfair and destructive
competitive practices and to effectuate the other purposes and policies
of Title I of the National Industrial Recovery Act consistent with the
B. Codes of Fair Practices may be submitted with the approval of
subdivisional trade associations, and if approved by the President in
accordance with Title I of the National Industrial Recovery Act, such
Code or Codes shall be administered by such Trade Associations.
ARTICLE XI-UNIAIR TRADE PRACTICES
A. It shall be deemed an unfair trade practice and a violation of
this Code of Fair Competition for any member of the Cotton Gar-
ment Industry to hold himself out, or advertise or otherwise repre-
sent himself as a "manufacturer" unless the cutting or sewing of
garments is included within the processes of his factory or plant;
provided, however, that nothing in this section shall be construed
to relieve anyone engaged in (a) cutting, (b) creasing, (c) trim-
ming, (d) sewing, (e) pressing, or (f) finishing, or all of them,
from the hour, wage, and production and other provisions of this
B. It shall be an unfair trade practice for any member of the
industry to send out work to any 'contractor to be made into a
garment by said contractor which shall include the cutting of the
material by said contractor and all work sent to a contractor by
a member of the industry must be cut in the member's own factory
or plant. And it shall be an unfair trade practice for any con-
tractor to accept from any one any uncut material or textile for the
purpose of producing from same a garment. Provided, however,
that this provision shall become effective January 1, 1934, and that
thereafter only those contractors may cut who obtain express per-
mission 'from the Code Authority with the concurrence of the
Administrator, upon duly showing their financial responsibility and
ability to comply with the wage and hours provisions of this Code
and further that their continuance of cutting operations will not
tend to defeat the purposes of the National Industrial Recovery
Act and this Code.
C. It shall be an unfair trade practice and a violation of this Code
for any member of the Cotton Garment Industry to sell or offer for
sale merely cut but unsewn and unfinished garments and any person
selling or offering for sale any merely cut but unsewn and unfinished
products, shall be deemed to have violated this Code and be subject
to the penalties provided in the National Industrial Recovery Act.
ARTICLE XII--GARMENT IDENTIFICATION
The Cotton Garment Code Authority may with respect to any of
the products covered by this Code, if deemed necessary, put into
effect the following provisions with respect to an N.R.A. label or
insignia, upon the approval of the Administrator:
A. Every such garment produced by any person subject to the
provisions of this Code shall bear an insignia, the purpose of which
shall be to aid as a means of enforcing the purposes of the provisions
of this Code by tracing the garment to its origin. Garments bearing
a recognized trade-union insignia indicating the origin of said gar-
ment shall not be required to bear the additional insignia required
by this Section. Every manufacturer engaged in the industry shall
apply to the Cotton Garment Code Authority for permission to use
insignia herein provided for, and each application, when approved,
shall be given a registered identification and every garment manu-
factured thereafter by the applicant shall bear said registered identi-
fication except as provided above. The Code Authority shall charge
no more than the actual cost of production and distribution of the
dies, labels or insignia, provided for herein.
B. The Cotton Garment Code Authority, with the approval of the
Administrator, shall determine the insignia to be used under the
provisions of this article and shall make such rules and regulations
as to the use and location of the insignia on any particular garment
as may be deemed practical or necessary. It is understood that the
location of the insignia on the garment is to be in an inconspicuous
position such as the skirt of a shirt, size label on overalls, etc.
C. The Cotton Garment Code Authority shall set up an Insignia
Registration Bureau for the purpose of carrying out the provisions
of this article.
A. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Section 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation issued under Title I of said Act and specifically,
but without limitation, to the right of the President to cancel or
modify his approval of this Code or any conditions imposed by him
upon his approval thereof.
A. No provision of this Code shall be so applied as to permit
monopolies or monopolistic practices or to eliminate or oppress
small enterprises or discriminate against them.
ARTICLE XV-OPERATION AND APPLICATION
A. This Code shall be in operation on and after the effective date
as to the whole Cotton Garment Industry as described herein, except
as an exemption from or a stay of the application of this provision
may be granted by the Administrator to a member applying for
same, in accordance with rules and regulations of the Administrator.
B. The provisions of this Code shall not apply to manufacturing
operations carried on outside the Continental portion of the United
ARTICLE XVI-PRICE INCREASES
A. 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 should be delayed and that, when made, the same should,
so far as reasonably possible, be limited to actual increases in the
ARTICLE XVII-EFFECTIVE DATE
A. The effective date of this Code shall be the first Monday follow-
ing the first Wednesday after the date of approval by the President
of the United States.
UNIVERSITY OF FLORIDA
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