CODE OF FAIR COMPETITION
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AS APPROVED ON DECEMBER 18, 1933
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1. Executive Order
2. Letter of Transmittal
aOVERNNMNT PRINTING OFFICE
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Buffalo, N.Y.: CbamberitA Commerc Build~ g.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2218 First National Bank Building.
Houston, Tex.: Chamber'of olio~bt ce Building.
Indianapolis, Ind.: Cihaber o Csummerce Building.
Jaeksoptille, Fla.: Ohraber i' Comercee Building.
Kansas City, Mo.: 1028 :litl~otoe Avenue.
Los Angeles, Calif.: 1163 I: nthitradway.
Louisville, Ky.:'408 Federal Baullang.
Memphis, Tenn.:'229 Federal Building.
Minneapolis, ,MJIL.: 213 Federal Be;dlng.
New Orleans, j t. Room 225-A,- Cutomhouse.
NewmYork, N.Y.: "734 Customhouse.
Norfolk,, Va.:; 406 $ast Plume Street.
Philhddilhiav Pa. :083 Commercial Trust Building,
Pittsburgh, Pa,: chamber of Commerce Building.
Portland, Oreg., 215 New Post Office Building.
St. Louis, Mq.:, i06 Olive Street.
San FFaridlsqq4Calif.: 310 Customhouse.
fSe4t4e Wash.: 809 Federal Building.
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Approved Code No. 164
CODE OF FAIR COMPETITION
,:..:.TKNITTED OUTERWEAR INDUSTRY
;,.-,;;. -As Approved on December 18, 1933
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": Executive Order
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
4;- f-iFair Competition for the Knitted Outerwear Industry, and hear-
iG ;:i: havingg beeii 'held thereon and the Administrator having ren-
: ied. ,.ij his report containing an analysis of the said code of fair
S:':: petition together with his recommendations and findings with
epe .Ji ct thereto, aid the Administrator having found:that the said
ii'*e, 3 qf fair competition complies in all respects with the pertinent
iiovisions of title I of said act and that the requirements of clauses
(1:l) and (2) of subsection (a) of section 3 of the said act have been
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
I the United States, pursuant to the authority vested in me by title I
S of :the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said code
Sf fair competition be and it is hereby approved, subject to the
i :following condition:
That all manufacturers of knitted outerwear for infants and
S.childre, sized from infancy to and including age fifteen, be granted
stay from the 'provisions of this code, until determination by the
;, administrator, after such hearing as he may deem necessary, as to
'" whether or.not they are to be included in this code.
FRANKLIN D. ROOSEVELT.
jIVH S. JOHNSON,
STn WHrrI HousE,
December 18, 1983.
K w:i:! .: :
DexEMBE 5, 1933. .1
The White House.
SmR: I have the honor to submit and recommend for yur approval <-
the Code of Fair Competition for the Knitted Outerwear Industry.
This Code was proposed by the National Knitted Outerwear Asso--"
ciation, No. 1 Madison Ave., New York City.
The National Knitted Outerwear Association was founded in 1918 ':
and represents 55%-of the total number of plants in the United
States and 72% of the total volume. This association is organized
on a regional basis, with five separate local associations serving
regions in all parts of the United States. The association impose
no inequitable restrictions on membership.
The hearing was conducted in the Willard Room of the Willard '
Hotel in Washington on October 1S and 17, 1933. Every person who.
filed a request for an appearance was fully heard in accordance with
statutory and regulatory requirements.
The Industry comprises approximately 750 plants with an in-
vested capital of approximately $50,000,000. The annual sales for
the. year 1931 were approximately $112,000,000 as compared to the
sales in 1929 of $147,000,000.
The Industry, since August 1, 1933, has been operating under the
same wage and hour provisions as contained in the Code and pro-
vided under a substitute agreement to the President's Reemploymeat :s
Agreement. The application of these wages and hours increased
the average weekly wage from $13.59 in June and July 1933 to
$15.93 in August 1933, an increase of 17%.
PROVISIONS OF THE a ODE
The Code provides for a minimum wage of 35# per hour in the
Northern section of the Industry and 321/2f per hour in the Southern
Productive machinery may be operated for two 40-hour shifts per 3
week with the provision that any employer may elect to operate one
shift per week and have the privilege of operating 48 hours per wee it
for two periods of 4 consecutive weeks each per year.
Employees may work not more than 40 hours per week nor more -:i
than 8 hours per day, except that when an employer elects to operate "
one shift only, the employees may work not more than 48 hours per ;..
week nor more than 9 hours per day.
Office employees may work an average of 40 hours per week over a
period of any 12 weeks, but may not work more than 48 hours in any .
one week. .A
r;': tJerime aDnove lu ours per weeir is to be paid tor at the rate it
j ntimeand.one third. Provision is made for the maintenance of differ-
tials between wages above the minimum. Provisions are made for
itg. anteeing sufficient pay to contractors to cover their wages plus
i;i:easonable allowance for the contractor's overhead.
':CHome work is a major problem in this Industry, due to the wide
iiuiet y of woik -done. and- the .wide geographical distribution of
i.workers. Workers are located in both the Metropolitan centers
...id in country districts in all sections of the United States.
:... I.t is necessary to consider also the conflicting aspects of the
r ioblem, as represented by the possibility of low wages, long hours
.ialjd labor, and. unsanitary working conditions on the one hand, and
iippled, needy, widowed mothers and difficulty of obtaining
Iiined workers on the other hand.
p3;: m the evidence submitted and from independent investigations
.4iW::as evident that more time should be allowed for study of the
li lem. Accordingly a home-work committee has been provided
o ir in the Code to set equitable piece rates and to study the prac-
kticability of elimination of home work, insofar as possible.
i:: ..... INFANT'S AND,CHILDREN'S WEAR
-i-': eIJnfant's and Children's Wear Industry have submitted a Code
rit Cbompetition in which-they seek to include Infant's and Chil-
I E3t~ s knitted outerwear. As the Knitted Outerwear Code also
ib;ludes Infant's and Children's Knitted Outerwear, a stay is recom-
iii!::: ided for all manufacturers of Infant's and Children's Knitted
t"'ifirwear until a final determination can be made.
I .fnd that-
r:'= -' ( ) This Code complies in all respects with the pertinent pro-
:;iiii: .Si0ns of Title I of the National Industrial Recovery Act, including
withofit limitation subsection (a) of Section 7 and subsection (b) of
:iA Section 10 thereof.
:.... (b. : The, National Knitted Outerwear Association is truly repre-
':'- titative of the Knitted Outerwear Industry and the Bylaws of this
I asciation provide no inequitable restrictions to membership.
'::() cThe Code.is not designed to promote monopolies or to elimi-
: at Aor oppress small enterprises and will not operate to discriminate
::::: ilst them, and will tend to effectuate the policy of Title I of the
I:::* Ft linail Industrial Recovery Act.
: rI rmcoml end that the Code be approved.
: HUGH S. JOHNSON,
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CODE OF FAIR COMPETITION
KNIrED OUTERWEAR NDSTRY
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To effectuate the policies of title I of the National Inidust '
Recovery Act, the following provisions are submitted. as a OIdde&
Fair Competition for the Knitted Outerwear Industry and .i ::u .i
approval by the President shall be the standard of fair competitict :
for such Industry and shall be finding upon every member th .4e
(a) The term "Knitted Outerwear Industrv" as used herein is
defined to mean the manufacture of knitted outerwear apparel for.
men, women, and children, including infants, and/or the.manuac-
ture of knitted fabrics for outerwear purposes, but shall not inlt4id
the products of the hosiery and/or underwear industries and/or "t i
manufacture of knitted woolen goods in self-contained woolen mi .::
of the wool textile industry as defined in the respective codes, .. ;'
these industries and shall not include the manufacture of garment .ii
made of purchased knitted fabrics.
(b) The term "employee" as used herein includes any person ;
engaged in any phase of the Knitted Outerwear Industry in any
capacity in the nature of employee irrespective of the method of
payment of compensation.
(c) The term "employer" as used herein includes anyone by i
whom any such employee is compensated or employed.
(d) The term "productive machinery" as used herein is defined
to mean all knitting, winding, pressing- (not including the pressing
of dresses, suits, and coats) and fabric finishing machinery used ini
the Knitted Outerwear Industry.
(e) The term "contractor" as used herein shall include anyone 6
who manufactures any of the products of the industry as iabo yp
defined, in whole or in part, for others who provide the necessary
raw materials. "
(f) The term "Act" as used herein refers to the National Indris-
trial Recovery Act.
(g) The term "Code Authority as used herein shall refer to the -.i
Knitted Outerwear Industry Code Authority set up in Article IX 'i
of this Code.
(h) The term "Administrator" means the Administrator duly
appointed under the National Industrial Recovery Act.
.'E:i.'i rctorsa or submanufacturers referred to in Article VII hereof,
adf Efins: in any other related groups as may from time to time be
.icljuded in the Industry by the Administrator upon application of
:l'::: ~The terni "cleaner" as used herein means and includes any-
ne who does janitor service or one who cleans floors, buildings, or
a ichinery and does nothing else but clean.
-ii'.v(k)* The term "learner,'- as used herein means and includes any-
*t who -has worked less than eight (8) weeks in the industry. -
cIl &(al) No -employee in the Knitted Outerwear Industry, except re-
j*MW-shop crews, engineers, electricians, firemen, supervisors, ship-
; pw, watching -and outside crews, cleaners, and office employees re-
i e %'smgg less than $35.00 per week shall be permitted to work in excess
of :dfdrty (40) hours per week, and the hours in each week during
IElwhi3h any employee shall have worked in other plants and/or in other
in.te tries shall be included in such forty (40) hours.
.0 0:(b) Office employees receiving less than thirty-five dollars ($35)
l:l""r week shall not be permitted to work more than four hundred and
.1K (480) hours in any twelve-week period, an average of forty
~.)hours per week, and not more than forty-eight (48) hours in
n one week.
-a On-ior-before February. 1, 1934, the Code Authority shall pre-
-i.d suibmit.to the Administrator suggestions for a schedule of
:R inumm hours to apply to those employees excepted under section
a1i : (of this Article.
:i'(d). .Employers in the Knitted Outerwear Industry shall not oper-
:1 productive machinery in the Knitted Outerwear Industry for
mr..than two (2) shifts of forty (40)' hours each in any week, and
to::::.-.:: other machinery used in the Knitted Outerwear Industry shall
; be operated for more than one (1) shift of forty (40) hours during
ai;.iy week; except that any employer may elect by notifying the
i.:d.riA::tuth6rity to operate all machinery for one (1) shift only, and
iineh. employer may operate all machinery on a schedule of hours
i..b :i.ioorfor his employees of not more than forty (40) hours per
!;;i::week except that for two (2) periods of four (4) consecutive weeks
Iieilari ,- per year, such employer may operate not more than forty-
ii':eight (48). hours in any one week.
;: (e) o employee shall work more than eight (8) hours in any
p!: e day when .n a forty (40) hour weekly shift nor more than nine
:O ":. i any one day when on a forty-eight (48) hour weekly
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i:;. : .over a ee above forty (40) hours per week shall be paid
..t:::. .. r:" a. ate of time and one third.
S. ...a. IV-Wa.us
h( t ihinm nu wages that shall be paid by employers in the
t:::, ed Otrwear Industry to any of their employees, except
S arne, shall e ..at the rate of thirty-five cents (350) per hour
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Texas, Louisiana, and Oklahoma shall constitute the Southern see-:..
tion of the Industry. Other states and the District of Columbia i..
shall constitute the Northern section. .
(c) The rate of pay for learners shall not be less than seventy-.
five (75%) percent of the minimum rate and no employer shall in-
clude within the category of learners more than one such employee : .
for every twenty (20) employees or fraction thereof.
(d) The weekly compensation for. employment now in excess of ',
the minimum wages herein provided shall not be reduced, notwith-
standing that the hours of work in any such employment may be .
hereby reduced, and piece rates shall be so adjusted that earning
at the shorter hours provided in this Code shall be at.least equivY .
alent to those obtaining under the longer hours .heretofore: pre
(e) The provisions for a minimum wage in this Code shall estab- ;
lish a guaranteed minimum rate of pay per hour of employment,
regardless of whether the employees' compensation is based on a
time rate or piecework rate or any other basis.
(f) Employers shall not reclassify employees or duties of occu-
pations performed by employees so as to defeat the purposes of the
Act and of this Code.
(g) A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on. light work at .,
rate of pay not less than 75% of the minimum rate, provided that not
more than one (1) employee for every twenty (20) employees or. a
fraction thereof may be placed within this classification, and the
names and addresses of all such handicapped employees shall be
reported to the Code Authority.
ARTICLE. V-CHILD LABOR
No person under sixteen (16) years of age shall.be. employed in the."
Knitted Outerwear Industry, nor anyone under eighteen (18) years
of age at operations or occupations hazardous in nature or detri- M
mental to health.
ARTICLE VI-HOME WoRK
(a) No Knitted Outerwear products shall be manufactured at
home for sale or other commercial purpose, except that' for the'
period of one year after the effective date of this Code hand knit-
ting (which shall include hand crocheting, hand embroidering, iant
hand sewing together of machine-made parts of garments), will be
permitted when performed in accordance with regulations- and/or i
piece rates which may be established as herein provided.
(b) Anything contained in Article IV of this Code to the con-
trary notwithstanding, the Administrator may fix, on or before
January 15, 1934, after notice to the Code Authority, and may s
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fl~l~iEg rcai time to time after like notice, minimum piecework
r~ iates for any of the operations described in paragraph (a) of this
( c) The Administrator shall appoint a Hand-Knitted Division
Committee of seven, three of whom shall be fairly representative
~ ~'tif ,the hand-knit manufacturers, three fairly representative of the
| machine manufacturers and recommended by the Code Authority,
sad ~ ere representing the Administrator. This Committee shall re-
p; rb, : to the Administrator within thirty (30) days after the effec-
: t vet date of this Code or within such further time as may subse-
I gently be- allowed by the Administrator or his Deputy, with re-
Sspect.to proper minimum piecework rates and shall make a study of
i:and report within six months from the effective date of this Code,
'Iupot the practicability of discontinuing home work in the Industry
Sor setting up a system of control for home workers.
; ArTICLE VII-CONTRACTING
A":'I members of the Knitted Outerwear Industry who use con-
tractors or submanufacturers for knitting or fabricating garments, or
Sany part thereof, shall pay such rates to the contractor or submanu-
facturer as will enable the contractor or submanufacturer to pay his
e" ployees at least the wages provided for in this Code, together
with a reasonable allowance for the contractor's overhead. The Code
SAuthority shall formulate additional regulations, with the approval
if t he Administrator, to carry into effect the purpose and intent of
: this provision.
." ARTICLE VIII-GENERAL LABOR PROVISIONS
(a) Employees shall have the right to organize and bargain col-
;: wectively thrugh- representatives of their own choosing, and shall
:? be free from the interference, restraint, or coercion of employers
iof .labor, or their agents, in the designation of such representatives
:or in self-organization or in other concerted activities for the pur-
ipo;! se of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
A, 4a condition of employment to join any company union or to refrain
p joining, organizing, or assisting a labor organization of his
:::(e.) Employers shall comply with the maximum hours of labor,
wImnanum rates of pay, maximum machine-load of employees, and
dler conditions, of employment approved or prescribed by the
,:4) Within each- State this Code shall not supersede any laws of
.o-State imposing more stringent requirements on employers regu-
Jig the age of employees, wages, hours of work, or health, fire, or
jweral working conditions than under this Code.
(e) Each employer shall post in conspicuous places on his premises
i copies of this Code, in the form prescribed by the Code Authority.
To effectuate further the policies .of the Act, a Knitted Outer-
tr'.Industry Code 'Authority is hereby designated to act as the
uVIrU OO V c 0.C0 u %1VLAJL LL B, %uA 5 & A E ta uJ i nruan J.J.v iiaJ l S.JI 'a PTOW
Administrator in such administration and enforcement *
(b) This Code Authority shall consist of eight (8): rxpeip W:I
tives of the Knitted Outerwear Industry elected by a tf maii
of selection, to be approved by the Administrator, and -nmi dt` t
than three (3) members without vote and without cost- to tTe
dustry, appointed by the Administrator. Such ag enym ay
time to time present to the Administrator recommedattiai
on conditions in this industry as they may develop which hWiI lit!
to effectuate the operation of the provisions -of this Code aid'"'li :'i
policy of the Act. Such recommendations, -when apprbveid-1jrvi
Administrator, shall have the same force: and: effect as any oeti
provisions of this Code. *- .-
(c) Such agency is also set up to cooperate with the Adinia;s-':
trator in making investigations as to the functioning and observamno -.
of any provision of this Code, at its own instance or on. comply :::
of any person affected, and to report same to the Administratoe. ,:
(d) In addition to the information required to be submitted t~ :-
the Code Authority there shall be furnished to Government A .gen i
such statistical information as the Administrator may deem inO -
sary for the purpose stated in section 3 (a) of the Act. : i
e) Members of the Industry who manufacture Infants' ai. ...
Children's wear up to and including sizes for 15-year-old childra :i:i
may elect to form a separate group within the industry and shall
have full rights to autonomy im regard to trade practices. Thi':
group may either approve the trade practices applying 'to other '
members of the Industry or separate and distinct trade practices
may be promulgated and adopted as provided in this Code.
(f) Members of the Industry shall be entitled to participate in ai
share the benefits of the activities of the Code Authority and to par :
ticipate in the selection of the members thereof by assenting to i3id
complying with the requirements of this Code and sustaining their:
reasonable share of the expense of its administration. The reason- :
able share of the expenses of administration shall be determninedibi,
the Code Authority, subject to review by the Administrator, on th :&.
basis of volume of business and/or such other factors as may: bt1b
deemed equitable to be taken into consideration.
(g) The Code Authority will cooperate with the Administrator- i
in the establishment of an Advisory Council for all or any grotip
textile industries, for the purpose of considering and advisin-i wMi
the Administrator on matters concerning two or more of sueh ..a
tries operating under separate Codes of Fair Compeittion, and uii
request and with the approval of the Administrator, appoint to-a
Advisory Council one or more representatives of the Kn
ARTICLE X-TRADE PRACTICES
To accomplish the purposes contemplated by the Act the fto
ing practices are hereby declared to be unfair methods of com
tion and in violation of this Code.
(a.. S 6h6r RBo~~ &-iseC Lt-No -member of the Industry shall sell
a ; .jprdi~.idt or ,serviee below cost based upon principles of costing
ir.:latei ..to by the. (ode Authority and approved by the Adminis-
ii tor, xept when necessary to meet competition, to dispose of
w.ii :i esa merchandise or under other circumstances to be defined by
St dCode- Authority.
:' (b)' Coinignmeint.-No member of the industry shall ship goods
Sc::s":i cagnment except under circumstances to be defined by the
OW:: tbj Akithority, .where-peculiar circumstances of the Knitted Outer-
wear Industry require the practice.
!: (c: MFiasbr~ dim.-No member of the Industry shall falsely mark
a~:f"''or brand knitted outerwear products for the purpose or with
Sth effect of misleading or deceiving purchasers with respect to the
6orgin trade marking, quality, yarn content, or construction of such
( ir) -MXiepresetatios.-No member of the industry shall publish
:aiertising (whether printed, radio, display, or of any other nature)
whie is misleading or inaccurate in any material particular, nor
I hall any member in any way misrepresent any goods (including but
withlat limitation its use, trade mark, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content,
or p paraMtion) or credit terms, values, policies, services, or the
atture or form of the business conducted.
(e7 Terms of Sale.-(1) No member of the Industry shall sell
or offer to sell knitted outerwear products upon terms other than a
maximum discount of three (3) percent to the wholesale trade for
payment. on the 10th day of the month following the designated
shipping date, or equivalent discount for longer periods. (2) No
member of the Industry shall sell or offer to sell knitted outerwear
products to the retail trade upon terms other than a maximum
discount of eight (8) percent for payment on the 10th day of the
month following that of shipment. For the purpose of these pro-.
visions, the 25th calendar day shall be considered the end of the
(f) Retmwns.-No member of the Industry shall accept the re-
.turn of garments that have been worn, or merchandise not worn
but which- has been accepted by a customer, except under circum-
Istin.es to be defined by the Code Authority.
.(g Rebates.-No member of the Industry shall secretly directly
oer or make any payment or allowance of a rebate, refund, com-
.: mission, credit, unearned discount or excess allowance, whether in
the foramof money or otherwise, nor shall a member of the industry
secretly ofer or extend to any customer any special service or priv-
iege not extended to all customers of the same class, for the pur-
poseid influening a sale.
(h) Delivery Charges.-All knitted outerwear products shall be
sold F.O.B. shipping point, except for deliveries within metropolitan
areas local to the shipper, subject to exceptions approved by the Code
(.i (a) .All standards already formulated in. cooperation with the
m:lureau of Standards of the United States Department of Commerce
AJGVT OWU-CLGuJuL uuGuMuLF Vuuu Cuim u7 .'A iiGtA% W*-i; ns
chandise manufactured after the effective date shall be plai y::
visibly marked by a firmly sewed label, "Substandard wher:i:
merchandise comes below the minimum standards. Every mawu'
facturer shall plainly mark with a stamp or a firmly sewed. label :4:4.
size or measurement of his product thereon. .
(b) All garments manufactured or distributed shall -~earo w aai
N.R.A. label, which shall remain attached to such garmen ts. S--ih
label shall be in such form as may be-prescribed by the Code Authe
ity. The Code Authority shall have the exclusive right in thji:i
industry to issue and furnish said labels to the members thereo. l
The privilege of using such label shall be granted and such label
shall be issued to any employer from time to time engaged in. .th:
industry, upon application therefore to the Code Authority accom? '
panied by a statement of compliance with the standards of operation :
prescribed by and the provisions of this Code. The privilege, p. i:l
using such labels and the issuance thereof may be withdrawn &au "".
cease or may be suspended in respect to any such manufacturer whoM. ,
operations, after appropriate hearing by the Code Authority aN :,..:::
review by the Administrator, shall be found to be in substantial.
violation of such standards and provisions. Employers shall be ea-l,
titled to obtain and use such labels if they comply with the pr
visions of this Code. The Code Authority may-establish appropraatie
machinery and regulations for the issuance of such labels, inspe-,-:
tion, examination, and supervision of employers engaged in-.the.
industry, in accordance with the foregoing provisions.
(a) This Code and all the provisions thereof are expressly made ti
subject to the right of the President, in accordance with the pro-i'"
visions of subsection (b) of Section 10 of the National Industria
Recovery Act, from time to time to cancel or modify any ord;
approval, license, rule or regulation issued under Title I ofs
Act and specifically, but without limitation, to the right of the Pi
dent to cancel or modify his approval of this Code or any conditifip
imposed by him upon approval thereof.
(b) This Code, except as to provisions required by the Act,
be modified on the basis of experience or changes in circ
such modification to be based upon application to the Admini
and such notice and hearing as he shall specify, and to
effective on approval of the President.
ARTICLE XIII-MONOPOIms .
The provisions of this Code shall not be interpreted or apfle
to promote monopolies or monopolistic practices or to el O
or oppress small enterprises or to discriminate against them.
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S ARTnCLE XIV-EFFECTVE DATE
his Code shall become effective the second Monday after its
ppioval by the President.
SApproved Code No. 164.
Seglstry No. 243-1-02.
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