---Price 5 cents
Registry No. 228---01
NATIONAL L RE COVE RY ADM INISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON OCTOBER 31, 1933
I!~ ~ ~~U A. ,-' 1CJ~
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
For sale by the Superintendent of Documents, Washington, D.O. --
UNIVERSITY OF FLORIDA
3 1262 08486 7513
This publication is for sale by the Superintendent of Documents, Government
Printing Offce, WaRshington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COM#MERCE
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Birmingham, Ala.: 257 Federal Building.
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Charleston, S.C.: Chamber of Commerce Buildling.
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Cleveland, Ohio: Chiamber of Commerce.
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Iilndianapolis, Ind.: Chamber of Commerce Building.
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Louisville, Ky.: 408S Federal Building.
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San Franncisco, Calif.: 310 Customhouse.
Settle, Wansh.: 809 Federal Building.
CODE OF FAIR COMPETITION FOR THIE DRESS DIANUFACTUMrRNG 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 mly approval of a Code
of Fair Competition for the Dress Mlanufacturing Industry, and
hearings having been held thereon and the Adlministrato~r having
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having foundl that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the saidl act have been
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to thle authority rested in me by title I
of the Nat~ional Industrial Recovery Alct., approved June 16, 1933,
and otherwise, do hereby adopt and approve the report, recommenda-
tions and findings of the Admlinistrator and do order that the said
code of fair competition be and it is hereby approved, subject to
the following conditions:
1. Pending the prompt holding of such further hearing on such
notice as the Admmnistrator in his discretion may fix. further orders
in this regard, and the final determination of the issues raised con-
cerning the application of the wage scale provided in this code for
the western area (as defined in the code), th~e applications of t-he wage
scale provided in section 6, article IV of said code for said western
area, except as to the metropolitan areas, as defined in the 1930
census, of the cities of Chicagao and Cleveland, shall be and the
same is hereby stayed until said determination, and
2. Upon the further conditions that, and it is hereby ordered that
during the period of such stay, section 7, of article IV shall be con-
sidered to meclude within its terms all employees included in th~is
stay, irrespective of craft., in said western area, and
3. The application of this code is stayed as to the manufacture
of dresses in chief content of cotton which in the custom and prac-
tice 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 garments, and which cotton.
dresses, under the established custom andi practice of the trade, are
customarily bought from the manufacturer by or sold by the mlanu-
facturer to the buyer of house or wash dresses, pending the hold-
ing of such hearings on such notice as the Admninistrator in his
discretion may fix, further orders in this regard and a, finl deter-
mination of the issues raised concerning the application of this code
to such manufacturer.
FRANKLIN D. ROOSEVEL;T.
THE ~HITE HOUSE,
October 3;1, 1933.
Approval recommended :
Hanc S. JoHNSON.
18575 "--188-109---33 (In)
Tlhe Wh~lite House.
SmR:This Code is a conspicuous example of the effectiveness of the
National Industrial Recover Act in rehabilitating a disorganized
and demoralized industry. Sopressmgc was the need for some such
helpful influence that the Act and the forces released by the Act met
with no great opposition. The Code herewith presented, while em-
bodyingr some compromise, represents a remarkable reconciliation of
interests widely divergent and hitherto in bitter opposition.
The outstanding features of this Code are:
1. Establishment of a thirty-five-hour week.
2. Establishment of minimum wage scales which increase the pur-
chasing power not only of the unskilled but also the skilled labor
throughout t~he industry. They are satisfactory to organized labor
and will make impossible the operations of exploiters of labor and
3. Fixinlg responsibility for standards of industrial relations upon
the outside manufacturer or "L jobber ", which hitherto has been most
inadequately and unjustly loaded upon the feeble and incompetent
shoulders of the contractor.
4. Elimination of the ancient abuses of child labor and home work.
5. Establishment of a Code Authority on which, are represented all
important interests of the industry. Equipped wvith administrative
power, reinforced by authority to Issue or withhold an N.R.A. label,
it may be expected t~o develop mnto a, powerful agency of self-govern-
Sment inl the industry, the lack of which has kept the dress industry
in turmoil and confusion for decades. All its actions, however, are
subject to the approval of the Administrator.
SU~MMARY OF THE CODE
The Code may be summarized as follows:
Article I sets forth the purposes of the Code.
Article II establishes certain necessary definitions.
Article III provides that no manufacturing employee shall work
in excess of thirty-five hours per week and that no nonmanufactur-
ing employee shall work in excess of forty hours per week. Overtime
may be permitted at, the discretion of the Admmnistrator, but for
no more than six weeks in any one season.
Ari~cle IV enumlerates the wage scales which shall be paid to
workers in the various cr~aft~s. These wage scales vary from fourteen
dollars pier wcseek to forty-five dollars per week. Because of variations
in working: condition and the efficiency of workers, separate wage
classifications are made as between low~er-priced and higher-priced
garments, between piece rates andl week rates, and between the city
of New Y~ork, the Eastern metropolitan area, the Eastern area, and
.the W~estern area. This article also contains the substannce of para-
graph seven of the President's R.eemployment Agreemnent. In addi-
tion, provision is made for the employment of handicapped persons
at rates below the basic minimum establishedl in this article. This
provision is inserted for humanitarian reasons, but it is so hedged
about with restrictions that abuse will be difficult, and it is hoped
im possi ble.
Article V abolishes child labor (minors under sixteen) as well as
home work, and provides that manufacturing shall be carried on
under sanitary conditions. In this article are included the moanda~-
tory labor provisions.
Article VI establishes a Code Authority representative of all
the organized interests in the industry including organized labor.
This Authority is clothed with ample powers to administer and
enforce the Code, subject always to the approval of the Admrinis-
Article VII regulates the relationships between outside manu-
facturers and contractors in respect to (1) the responsibility of
manufacturers for the payment to contractors of amounts sufficient
to cover the wages provided for by this Code and in addition a rea-
sonable amount for overhead expense; and, (2), the selection and
retention of contractors by the manufacturers to protect the con-l
tractor and his employees against unjust discrimination in, the
distribution of work.
Article VIII provides than an N.R.A. label be attached to every
garment manufactured under this Code. This label will bear a
registration number specifically asged to eacharln employers inth
industry and will remain attacedoechgrntwnpledo
sale by the retail distributor. The Dress Code Authority is given
sole authority, with the approval of the Administrator, to administer
the issuance of these labels. This provision will facilitate the ad-
mninistration of the code, and in particular will provide sufficient
revenue: to finance the activiiso h oeAtoiy
Article IX deals with trade practices, providing uniformity in the
relations between buyers and sellers, in such matters as: (1) return
of merchandise, (2) uniform order blanks containing the terms of
the contract, (3) protection of original styles, (4) discounts, (5)
selling on consignment or at retail, and (6) secret rebates, etc.
Article X contains the mandatory clause protecting small enter
praises against monopolistic practices.
Articles XTI and XYII provide for modifications and amendments
to this Code.
Article XIII names the effective date of this Code.
PROBLEMS OF THE INDUSTRY
The Dress Industry of the United States as it is now constituted
is one of the youngest industries of the country. It is only about
thirty years old; but from very small beginnings it wvas able to
reach a wholesale turnover of about eight hundred million dollars
in 1929. The present volume, however, has decreased to about five
hundred million dollars. The industry is concerned with the manu-
facture and distribution of women's and children's dresses, ensem-
bles, etc. It does not include, however, what is conunonly known as
house dresses or cotton wash dresses, which types of apparel fall
rmder the jurisdiction of the Cotton Garment Code. Particular care
has been taken that there be as little overlapping as possible between
these two codes.
New Y'ork City is the dress manufacturing center of the country.
In 1931, 66.41 percent of the total number of manufacturing estab-
lishment~s were located there, and the annual sales volume of these
establishments repre-sented 78.6 percent of the total business trans-
acted. Chicago, Philadelphia, Boston, and Los Angeles are next in
importance. Other localities are St. Louis, San Francisco, Cleveland,
and Basltimore. The geographical distribution of the industry may
be sumnmarized by the following table, prepared from data supplied
by the National Credit Offlee.
Number Per cent
City of oon- Bales of total
Now Y'ork Cily.......................................... 1, 83 33, 183, 000.00 78. 8
Ch ic a go ......... ........... ........... ........... ........... 180 44, 399, 000. 00 5. 5
Philadelphia.~- ....-.......-................................ 109 30. 466, 000. 00 3.8
SLos A ngeles ..................~~ -................................ Ob 22, 184, 000. 00 2. B
Boston ............ ..... ..... ..... ..... ..... ..... ..... ... 9 20, 251, 000. 00 2.5
C lev ela nd.~......................................... 22 9, 136, 000. 00 1. 1
st. Loui%......~. .......__--____-.............................. 40 8, 963, 000. 00 1.1i
Baltim ore.. .................. --.... ... ... ... ... ... ... ... .. 10 2, 875, 000.00 .4
San Francisco.. ............... ............... ............... .. 18 2,529,000. 00 .3
All or hers. .... .~~-~-~-~-. ............-...-........................ I14 31, 19;, 000. 00 3. 9
Total.~-~ ........ ....... ...... ....... ...... ....... ...... 2, 080 805, 183, 000. 00 100. O
TS.6%7 of the total sales of dresses throughout the country were
manufacturred and sold in New York City, leaving 21.4%b for dis-
tribution by thle rest of the country. The reasons given for the
predominance of New York City over the rest of the country were
as follows: N~ew YZork Clity is recognized as the leading style center;
there is an, adequate supply of skilled labor; transportation facilities
ar~e of the best;; adequate financing is available; t~he fabric market is
Obviously, this code has given due recognition to the conditions
prevailing in the city of New York; and its environs, particularly with
reference to the jobber-contractor system of production,
In New Y'ork, the dress industry is composed of four principal
elements: Jobber~s or wholesalers, inside manufacturers, contractors,
and submaiu factu rers. Inside manufacturers create their own
styles, mIanufacture on their own premises, use their own material,
and sell, ]largel, di;rectly7 to re~talpers Many of these inside manu-
factur~ers lik~ewlse mak~e use of contractors, particularly at the height
of the season.
Jobbers and wTholesalers concern themselves chiefly wFith the prob-
lems of stylle and distribution, and the purchase of piece-goods, ma-
terials, trimmings,, etc. Submanufacturers and contractors manufac-
ture the garmnentss in accordance with the styles decided upon by the
jobber. In the low-end price range most jobbers employ cutters on
their own premises to cut the w~ork. Such partially finished gar-
ments are then let out to contractors, who complete the operations.
The term contractors "' is generally used to include submanufac-
turers; ge~nerally speaking, however, the contractor merely com-
pletes the manufacture of garments which have already been cut on
the premises of a jobber or a manufacturer. The submanufacturer
produces directly for a jobber or a manufacturer from materials and
trimmings furnished by the latter.
It has been estimated that cont reactors and2 submnanu facturers pro-
duce about eighty percent of the dresses mnanufac-tured in ~New
York City. There are approximately 1,8r00 cont~ractor~s andl sub-
manufacturers located in the New York metropolitan area.
Not many yh e arfs gofh viirtuall all dress contractors w~ere located
witin he onfnesof he ityofGreater New Y~ork; in recent years,
however, in an effort to finld a cheaper labor market, factories hav~e
been established in adjoining districts, particularly in N~ew Jersey,
Connecticut, and Pennsylvania. Workers in these arreas have been
unduly exploited. Fifty-four hours per week or even more have
been by no means uncommon, and wages have been pitifully low.
These oult-of-town contrrctolrs are engagea d largrely in the production
of the cheaper lines of dresses, that is, dresses which wh~olesale at
$3.75 and less.
The development. of t~he contracting systemn in the dress industry
is easily explained. For one thing, dresses are created in a great
variety of styles. A comparat~ively small number of each style is
produced and sold. Experience has proven that efficient production
can be obtained only when these dresses are produced in comnpara-
tively small units of shop production. Each operator produces vir-
tually a complete dress. Unlike other industries, there is no possi-
bility of splitting up machine or hand operations and introd-ucing
standardization. The perfection and efficiency of the workers dlepend
not so much on the managaement of the plant as it does on the indi-
vidual skill and ability of the particular worker.
The personal element is extremely important. The Contractor,
having a smaller group to supervise, knows the particular abilities
and skill of each of his workers. He is a specialist in the manufac-
ture of ladies' garments; the jobber likewise is a specialist in the
distribution and sale of the manufactured garments. Each serves
more efficiently in his specialized fieldl.
Another reason for the development of the contracting system in
the dress industry is the insurance it gives against sudden stoppage
or curtailment of the production because of strikes or other labor
troubles. Under the jobber-contractor system, if a labor dispute
develops among the workers in any particular contractor's factory,
it usually does not effect the output of the other contractor who
supplies t~he particular jobber.
During the past few years, competition among the various factors
has been so kreen and the prices paid to t~he contractors have been so
low, that in many instances prices pa~id by the jobber were hardly
suffcient to pay t~he actual labor costs, not to mention the overhead
expenses of the contractor, or payment to the contractor for hiis
services. The result has been that the contractor's savings have been
wiped out. His plants are heavily mlortgaged, and he has incurred
debts in all available sources. Factory removals have become almost
The problem of jobber-contractor relations has received special
consideration in the formation of this Code. Indeed, without the
help of the National Recovery Administration, it is difcult to
imagine how these relationships, so unjust and unsatisfactory, could
be placed on a decent basis.
This result was not accomplished, however, without numerous and
prolonged conferences both in Washington and New York. The pro-
visions of Article VII represent a compromise in which- both parties
mnade concessions from their extreme positions.
The contractors had convinced themselves that the Code would
not give them the advantages they desired unless the competition
between themselves were eliminated or mitigated. To attain this
end they insisted that the manufacturers be strictly limited as to the
number of contractors they might employ.
WVhile admitting the en~ls of unrestrained competition among the
contractors] the manufacturers believed that the remedy suggested,
i e., limitation of contractors, would create new evils. If the manu-
facturer were not free to allocate his work to the contractor best
fitted to perform it, as to quality, price, and delivery, he would be
intolerably handicapped in meet~inga market requirements.
It seemed obvious that in this matter, fraught with clangers to the
success of the Code, great caution was advisable. Provisions were
suggested by which substantial steps in the direction of controlled
competition could be taken and further steps provided for as ex-
perience demonstrated their practicability. For many weeks, these
p'rop~osals were refused but finally the extreme demands were
abandoned and the matter settled by the clauses in Article VII[,
now a part of the Code.
Prior to the restriction of immigration, additional workers were
recruited into the industry from Russia and Italy. M~ost, if not all,
of these workers had plied their respective crafts in their own
countries, and h~ad already a fairly high degree of skill and
ex perie nce.
In late years, however, the racial distribution of workers has
changedl quite markedly. There have come into the industr-y Cubans,
Portuguesel Spanish, and Greek girls and women. This new type
of worker Is slow to learn and requires a longer period of time to
attain a reasonable degree of efficiency. Their earnings today at
piece rate and week rate range from six to sixteen dollars per week
outside of New Y'ork City, and from ten to twventyv dollars per week
in New York Ctityv.
The economic dep~ression has also influenced the type of worker
engag~ed in the industry. During the last three years there has been
a great influx~ of temporary workers, particullarlyv in the areas out-
sidle of the Cityv of New Y'ork. In New York sixty percent of the
workers are female, whereas outside New York ninety-five percent
are female. M~any of these are married women. Many have gravi-
tated to the industry as a result of the economic depression; they have
been compelledl to become the main supports of their families. A
good prop~ortio~n of such workers will return to their homes as soon
as their husbandls or children are able to earn a fair livelihood.
One more feature peculiar to the labor supply of this industry
must be realized. As noted above, a substantial majority of the work-
ers are women. The labor turnover, consequently, is high becauLse of
the tendency of wTomen to discontinue: industrial pursuits upon mar-
riage wFhen economic conditions permit.
For all of these reasons, it is desirable that some provision be made
w~herebyI the indurst ry maty, without unduly burdening itself, maintain
an adequante supply of trained workers.
At the same time, because of the large volume of unemployment in
the industry, the unrestr~ictedc employment of apprentices would be
highlly undecsir~able. The Code A~uthority hlas been charged withz the
responsibility of studying the problem and of recommending to the
Adlministratolr ppropr~iate regulations for the control of appren-
THE DRESS *ETRIK~E AND ITS fiETTLEM1ENT
About a w~eek prior to the date of hearing, a strike occurred in
N~ew ork wh)ich became general throughout the industry in that
city. AIr. G~r~over W~hazlen, representative of th~e National Labor
Boardt, took charge and wa~rs able to effect a settlement byT collective
Ragreemlents among all parties before the hearing date. In view of
the dliffculties of the situation this was a remarkable achievement.
The lasting service of Mlr. Whalen was acclaimed by all the leaders
mn the industry.
Strikes in th~e Chicagro, Cleveland, St. Louis, and other markets
were settled in a similar manner and collective agreements with the
union entered into. Mlr. ~Max: Meyetr, of Newr York, Industrial
Adviser at the hearing, rendered important service in these events.
Thle principal organizations participating in the public hearing
and in subsequent conferences, representing all the markets of any
A. The National Dress Manufacturers Association, whose memb-
bershipp consists of about six hundred firms. This Association com-
1. Jobber~s whose entire product is made by contractors to whom
the jobber furnishes the: materials for the making of hiis garments
from samples furnished by the contractor.
2. Jobbers w~ho style their owCn merchandise and for whomn the
contractor makes up 'the dresses.
3. Jobbers whlo make their samples and also maintain cutting
departments, furnishing cut bundles to contractors; for completion.
4i. Employers who maintain inside factories for part of their prod-
uct and use contractors for another part of their output.
B. The Affiliated Dress Mannufactur~ers, Inc., whose membership of
one hundred tw~enty-five firms comprise the manufacturers of the
finest garments. Their work is carried on largely on the premises,
although part of their production is made in contra~ctor-'s shops.
C. The United Association of D~ress Manurfactur~ers, Inc., which
comprises a majority of the dress contractors working for the above-
mentioned jobbers and manufacturers. TjChis organization has a large
membership, largely recruited since the settlement of the strike.
D. The out-of-town associations consist of the Western Group,
taking in the cities of Chienago, Cleveland, IJndianafpolis, San Fran-
cisco, and Los Angeles. Another association represents the Boston
market, and still another Philadelphia.
Labor wans represent.edi by the International Ladies Garment
Workers Ulnion andl also by a representative. of the Needle Trades
Industrial WVorkers Union of New York City, claiming a m~ember-
ship, of fifteen thousand workers.
The hearing d~evelop~ed substantial agreement on most questions,
particularly on t~he question of hours. Exceptions were voiced by
re~presen8tatives of the W'estern Group regarding differentials agreed
upon by the New Yorkr manufacturers and unions for the produc-
tion ofY dresses selling at $3.75 and under. The Western Group
dlissentedl fr~om the d-iff'erenltial of t~en percent proposed in their faore
for all onprations,_ demandijng for their group a. differential varying
from fifteen to twenty-five percent. Within the Eastern Area re-
quests w~ere mnade for differentials greater than ten percent but
could not be granted because of competitive conditions.
The advisability for an N.I.R.A. label has already been recognized
in the code adopted for the coat and suit industry. The arguments
advanced at the hearings on the Coat and Suit Code apply with
even gr~eater force to the Dress Codle.
TIhe use of the N.I.R.A. label will serve to identify the concerns
who have complied with the Codle. It will be a most effective means
of certifying both the factory or plants as well as its output. Under
proper safegtuards~ for the issuance of the label, the identity and
location of each factory can be readily ascertained. Effective super-
vision of thie physical surroundings of the factory and the compliance
with the pr~ovisions of the code can thus be more readily instituted
by the Code Authority, or any other agency delegated for the task.
Between 1929 anld 1931, the average number of workers employed
in the indtustry decreased~ from 88,223 to 79.724. The estimated total
number of w~orker~s employed in 19;32 was 66,344. Froml these figures,
it appears that in 1932 in excess of 21,000 workers were unemployed.
Taking into account the seasonality of the industry, however, the
excess labor supply in that, year was somewhat less than 20,000.
The full-timle week in this industry consisted, so far as may be de-
terminned from the mieagre statistical information available, of about
forty-eight hours. By the introduction of thle t~hirty-five hour week,
therefore, unemployment urliing busy seasons should increase about
thirty-seven percent. It, is hoped also that the restricted week will
materially reduce the seasonal fluctuations in employment.
The av-erage annual wage declined from $1,344.00 in 1929 to
$880.00 in 1932. UTnfortunately it is impossible to estimate the prob-
able increase which the wage scales provided in the Code will bring
about. It is conceded by all concerned, how-ever? that the increase
will be considerable. It is possible, on the other hand, to estimate the
;nc;ease mn pay roll which the thirty-five hour week will necessitate.
The reemploymnent of thirty-seven percent t more workers will add to
thle annual pay roll about twenty-one million dollars.
WTith respect to the wage and hour provisions of the Code, t~here-
fore, it, may be expected that the purposes of the National lIndustriazl
Recovery Act will be effectuated.
The Deput,~y Admlinistrator finds that:
(a) The Code complies in all res~pects with t~he pertinent pro~vi-
sions of Title I of the A~ct, including, without limitation, subsection
(a) of Section 7i and subsection (b) of Section 10 thereof; and that
(b) The trade association submitting said Code imposes no in-
equitable restrictions on admission to mlember~ship therein and is
truly r~epresenta7tive of the D~ress ~Manufacturing Industry; and that
(c) The Codle is not designed to promote monopolies or to limit
or op'press small enterprises, and will not operate to discrimrina~te
against. them, and will tend "to effectuate the policy of Title I of
the Nat~ional Indlust~rial Recovery Act.
I recommend that the Code be approved.
HUGH S. JoRNSON
CODE OF FAIR COMPETITION FOR THE DRESS
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submlitted as a Code of
Fair Clompetition and upon approval by the President shall be the
standard of fair competition for such Industry and shall be binding
upon every member thereof.
1. The term Dress MaRnufa7cturing Industry as used herein
includes the manufacture and sale by the manufacturer (as defined
in paragraphs 6 andC I of this Ariticle) in whole or in part, in the
United States onl the Nor~th American Continent, of women's, mnises',
and juniors' dresses, dlrescmakiers' ensembles, and waists when used
w~ith ensemblles, wrhethler suc~h manufacture and distribution shall -be
by inside or outside manufacturers, contractors, or otherwise;_ pro-
vided that, nothing in this definition shall include the manufacture
of inexpensive dresses made of mater~ial of which cotton is the chief
content and generally known in the trade as a house dress or house
MIakinga of garmnents in what is known as the custom trade ",
to individual measure on indlividual order of the. wearer if (1) such
garmlents are sold on the premises of the maker, or (2) the garments
are made by emplo-er~s employing less thanl 10 employees is not a
part of this Industry.
2. The term lower-priced garments includes those garments
regularlyl sold in wPholesale quantitiesi for $3.75 each. or less.
3. The term higher-priced garmlents" inlcludces all garments
manufactured in this Indlustry except those includedc in the definition
of lower-priceed ga rments.
The t~ermn employee or worker as used herein, includes any-
one engaged in the Indlustry in any capacity receiving: compensa-
tion for his services, ir~respective of the nature or mnethrod of payment
of such compensation.
5. The terml emlployer as used herein includes all those by whT2om
any such employee is comnpensatedl or employed.
6. The term outside manufacturer or jobber ", which are
synonymously used in this Code, include all those for whom and/or
under whose direction or orders garments in the Dress Manufac-
turmng Ind~ust~ry are manufactured in whole or in part by contractors.
andi or other manufacturers, and whoI1 act as wholesale distributors
of su~ch garments.
7. The term "L inside manufacturer includes all those who manu-
facture garments in the Dress Mlanufacturing Industry out of their
own material in a factory mnaintainedl and~ operated by them.
8. The termi contractor includes all those who manufacture
garmnents3 in the Dress M~anufacturing Industry from materials pro-
vided for then by a manufacturer, Jobber, or others.
9. For the purposes of this Code, four (4) areas are hereby
(a) City of New York as used herein means and includes the
five boroughs of New York City.
(b) Eastern M~etropolitan Area as used herein, means and in-
cludes the metropolitan areas as defined by the 1930 Ciensus of
]Philadelphia, Boston, and Baltimiore.
(c) '"Ea~stern Area "! as used herein means and includes the New
England States, New Y'ork, Pennsylvania, New Jersey, Delaware,
and Maryl~and exclusively of the C~ity of New Y'ork and Eastern
Metropolitan Area as defined above.
(d) Western Area as used herein means and includes all por-
tions of the UJnited States on the Niuorth American Continent not
included in the above three areas.
10. T~he terms President ", "Act ", and "LAdministrator as used
herein shall mean, respectively, the President of the United States,
the NJational Induistrial Recovery Act, and the Administrator of
Title I of said Act.
1. No employee,~ employer, or indlividuanl operating on his own ac-
count shall work or be permitted to work in the mechanical processes
of manufacture in excess of 35 hours, nor more than 5 days, in any
2. All other employees shall not work or be permitted to work
in excess of 40 hours in any one weekr, except. foremnen and executives
receiving $:35 or more per wFeek, andl except salesmen, designers, and
watchmnen. Watchmene shall not work or be permitted to work more
than six days in any one week.
3. Exceptions from the two last preceding paragraphs may be
allowed by the Code Authority for a period of not more than six
weeks in any one season; provided that the employer shall be re-
quired ~ topyone and one half times the normal wage for such
4. Employers shall not operate or be permitted to operate more
than one shift in any one day.
ARTICLE 17- YAGCES
1. Emnployees engaged in the mechanical processes of manufacture
of higher-priced ganrmlents in the City of New Y'ork shall be paid not
less than the following minimum wages:
Cutters--,------- ------------ ----------------- $-15 per week of 35 hours.
~Sample makers----------------------------------- 30 per week of 35 hours.
Drapers_____ ________ __,_____ ________ ____ 27 per week of 35 hours.
El~xamziners ___ ___ __ _______ _.21 per week of 35 hours.
Cleaners & Pinkers __ __ __ __ 15 per week of 35 hours.
Operators_,,- _-- .._______ ____ 904~l per hour.
Pressers _______________ 1 per hour.
Finlishers _._--________ 654 per hour.
2. Employees engaged in the mecha~nical p:r~ocesses of m~anufacture
of lowfer-pric~el gar1ment s inl the City of New\ York shall be paid not
less than the following mininulmil wnges:
Cutters-_---- ------ ---- -------- ------- ------__. $46 per week of 35 hours.
Machine Cutters___------------------------------_ 37 per week of 35 hours.
Stretc~hers. ------ --------------- -- ---- -- ----_ 27 per week of 35 hours.
Samtlple Makhers .. __----_------ -_ 30 per week of 35 hours.
Examiners-_ _.._-- -------------------. 20 per week of 35 hours.
Cleaners &~ Pinkrers ..____-_________ 15 per week of 35 hours.
Ope'rators______ _- ---- .-- 75& per hour.
Pressers__--- ------- --- _---- 854 per hour.
Finishers...._ __ __..... .___ 57& per hour.
3. Eastern Ml~etr~opolitanr Area ---Workerss or employees in the
Eatster~n Mletropolitan Aren eng~ag~ed in the mechanical processes of
manufacture of higiher-priced gar~ments a7nd./or lower-priced gar-
ments, respectively, shall be p~aid at least 905~ of the minimum wages
herein set forth for the City' of New Yor~k for the various crafts in
the two clasisifications of garmnents, respectively; provided, however,
that cleaners andt pinkersi shall niot receive less than $15 per week.
4. Earsterln Airra ---Employvees engaged in the mechhanical processes
of manufacture of higher-priced garments in the Eastern Area shall
be paid not less thanl 90%~c of the wages herein provided for said
gatrmen~ts in the Cityl of New Yor~k for the various crafts; provided,
however, that cleaners and pinkers shall not receive less than $15
5. Employees engaged in the mechanical processes of manufacture
of lower-pr~icedt garments inl the Easter~n Area~ shall be paid not less
than the follow~ingf minimum wages:
Cutters_ -____-- -____ ___ __-_ ___ $45 per week of 35 hours.
MaI~chine cutters--_---_---_-_--__ 37 per week of 35 hours.
Stretchers--_- ____-____-_ 27 per week of 35 hours.
Sample muakers- _- -_____ ___ _- _____ 30 pier week of 35 hours.
Exam~inersi_______--_-__-_ 17 per week of 35 hours.
Cleaners and p~inklers .-------------- 15 per week of 35 hours.
Operators... ._________---_ -___-____ 634 per hour.
Pressers_ _________________ 70e per hour.
F'inishersj_ ___- .________ -_-__ __ 50$ per hour.
6. W~ester~n A-1rci.--Employees in th~e W~esrtern Area engaged in
the mechanical processes of mlanufacture of higher-priced garments
and/;or lower-priced garments, respectively, shall be paid not less
than 85%1 of the minimum wnges established herein for the City
of New York for the various crafts in the two classifications ojf
garments, respect~ively; provided, however! t~ht cleaners and pinkers
shall receive not. less than $14 per week.
The Pacific Coast or other marklet~s in the Western Area may
petition the Administrator for a change in the wage differentials
allowed herein. The Admninistrator. after such hearings as he mnay
deem proper, after taking into consideration the competitive advan-
t.ages and/or disadvantages of such markets, m~ay modify the
aforesaid differentials provided in thiis Section.
7i. All1 other employees mn any and all of such~ areas shall be paid
not less than the rate of $14 per week for t~he Inya imum hnourly.wlork
week as herein established.
8. The above wage scales provide a guaranteed minimum regard-
less of whether the employee is compensated on a time rate, piece
rate, or other basis. Cutters, sample makers, drapers, examiners,
clea ne rs and pinker~s, machine cutters, and stretchers shall be
employed and paid on a week-work basis.
9. N~o emprloy~ee shalll receive a lesser rate than is required to
provide the samne earnings for the hourly work week herein estab-
lishedl as was received for that class of work for the longer work
week prevailing immediately prior to the date of approval of this
Codle, provided, however, that this clause shall not be interpreted
to require an increase in rate to any employee in excess of 20ro.
Nothing herein contained shall relieve any employer from paying
the other minimum wage rates established in this code.
10. Excep~tions from the above mninimum-wage rates are granted
for apprentices until the Code Authority shall make further report
in those cases now existing in which apprentice rates have been
established after legitimate collective bargaining.
11. To insure employment to employees who are physically or
mentally handicapped or who are otherwise subnormal in their
production, such employees may be exempted by the Code Authority
on such terms as the Code Authority may specify from the wage
provisions of this Code, subject to review7i by the Administrator;
provided that such employees shall not exceed in number 10%n of
te total number of workers employed by any one employer.
ARTICLE VT-GEN~ERAL Lanon Pnovisrows
1. No person under t~he age of 16 shall be employed in the Dress
2. Emnployees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor or their agents, in 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.
3. No employees andl no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joinmng, organizing, or assisting a labor organization of his own
4. Employers shall comply with t.he maximum hours of labor,
miinimnum rates of pay, and other conditions of employment approved
or prescribed by the President.
5. ~Within each~ State this Code shall not supersede any laws of
such. State imaposinga more st~rinlgent requirements regulating theag
of employees, wages, hours of work, or health, fire, or general wok
ing conditions than under this Code.
6. Employers shall not reclassify employees so as to defeat the
purposes of the A-ct.
7. Each employer shlall post in conspicuous places full copies of the
applicable labor provisions of this Code.
8. No work shall be carried on in homes or tenement houses, ba~se-
ments, or in unsanitary buildings, or in buildings unsafe on account
of fire or dangerous to hlealth~.
ArrICLE VI-C~ODE AUTHORITY
1. To further effectuate the policies of the Act, a Code Authority
is hereby set up to cooperate wvith the Administrator in the admlin-
istration of this Code.
(a) The Code Authority shall consist of sixteen individuals, or
such other m~unber as may be approved from time to timue by the
Administrator, to be selected as hereinafter set-forth. The Admin-
istrator, in his discretion, may appoint not more than 3 additional
members to represent the Adrmnistrator as he may desire.
(b) The above members of the Code Authority shall be selected by
a fair method of election to be approved by the Administrator, by
each association, group, or geographic subdlivision of the Industry
hereinafter designated, and each such association, group, or geo-
graphic subdivision of the Industry shall elect the following number
of individuals to said Code Authority, respectively:
National Wh~olesale Dress Manufacturers Asso-
ciation_----- _-------- ----- 3 members.
Affiliated Dress Manufacturers AssocIation___ 3 members.
United Association of Dress Manufacturers, In-
corporated .. ... 3--------- members.
Eastern M\etropolitan Area and Eastern Area --. 1 member to represent dress
manufacturers, 1 member
to represent contractors.
Western Area----_ ---- .------ --- 2 members.
International Ladies' Oarment Workers' Union ._ 3 members.
(c) Each trade or industrial association directly or indirectly par-
ticipating in the selection or netivities of the Code Author~ity shall:
(1) Impose no inequitable restrictions on membership and (2) sub-
mit to the Adminiii stratoo r true copies of its Articles of Association,
Bylaws, Regurilations, and any amendments when made thereto,
together with such other information as to membership, orgianiza-
tion, and activities as the Admiinistrator may deem necessary to
effectuate the purposes of the Act.
(d) In order that. the Clode Authority shall at all times be truly
representatives of t~he Industry and in other respects comply wFith the
provisions of the Act, the Adjministrator may provide such hearings~
i 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
com~ply with the provisions of the Act may~ roeqAuireanapropria
modification in the method of selection of teCoeAtoiy
(e) Should a vacancy occur on the Code Authority, it shall be
flled in accordance herew~ith by the organization, group, or geo-
graphic su~bdivision formerly represented by the place on the Code
Authority in which thle vacancy occurs.
1; 2. The Code Authority shall have the following duties and pow~ers
r;to the extent permitted by thle Act. The Administrator on review
Shall have the right to veto or modify any action taken by the Code
r Authority :
1' (a) The Code Authority shall adopt bylatws and shall furnish to
the Administrator true and correct copies of the bylaws andl all
~Iamendments thereto immediately uport their adoption, together with
,1 true and correct copies of all rules and regulations which mayF b~e
adopted by the Code Authority and true and correct minutes of all
of its meetings, all certified by the Secretary of the Code Authority.
(b) To elect officers and to appoint agents and employees and to
assign to them such duties as it may consider advisable, and to pro-
vide rules for t~he selection of members of the Code Authority by the
Indlust ry. The Code Authlority shall keep the Administrator advised
of the personnel of its administrative employees.
(c) To administer andl enforce the provisions of this Code.
(d) To obtainl from time to time from employers in the Industry
who shall furnish reports in respect to wages, hours of labor, condi-
tions of employment, number of employees, and other matters perti-
nent to the purposes of this Clode as the Code Authority may pre-
scribe and to submit periodical reports to the Administrator in such
form andc at such times as he may require, in order that the Presi-
dent mayp be kept informed with respect to the observance thereof,
to furnish governmental agencies with such statistical and other in-
formation as the Administrator may deem necessary for the purpose
recited in Section 3 (a) of the Act.
Except where alleged violations are being heard, all individual re-
ports furnished pursuant hereto shall be treated as confidential in-
formiation by thle administrative staff of the Code Authority, and
shall not otherwise be revealed to competitors of those furnishing the
information except as part of summarized reports.
(e) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Au-
thorityv of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(f) To coordinate the administration of this Code with such other
Codes, if any, as may be related to the Dress Mhanufacturing Indus-
try or any subdivision thereof, with a view to promoting joint and
harmonious action upon matters of common interest.
(g) To initiate, consider, and submit to the Administrator
proposals for amendments to or modifications of this Code.
(h) To provide ways and means for financing the operation of
said Code Authority and to determine an equitable method of appor-
tioning in the. Industry the Cost of administering this Code. Money
raised in any manner shall not exceed in amount suchl reasonable
(i) The Code Authority shall provide rules and regulations by
which the distinction between higher-priced garments as herein
defined, and lower-priced garments shall be determined. In so
doing the Code Authority shall be guided by the wholesale prices
prevailing on August 15, 1933, or thereabouts, as representing the
intention of the framers of this Code.
(j) The Code Authority upon the adoption of this Code shall
immediately make a thorough study for the purpose of introducing
apprentice systems into the. Industry, taking into consideration the
school and other requirements of the respective states. On the basis
of this study, thle Code Authority shall make recommendations
before January 1, 1934, to the Administrator for a provision for
apprentice systems suggested as an amendment to this Code.
(k) The Code Authority shall immediately make investigation
into the problem of style piracy, and make~ recommendations in
connection therewith to the Administrator within sixty days after
the effective date of this Code.
Anncu: VII-REILAHOONS BETWEEN MABNUFACTURERS AND
1. (a) All manufacturers and/or jobbers who cause their gar-
ments to be made by contractors shall adhere to th~e paymlent of
rates for such production in an amount sufficient to enable the con-
tractor to pay the employees the wages and earnings provided in thlis
Code and in addition a reasonable payment to the contractors to
Where a contractor establishes that there has been an underpay-
ment made by any manufacturer and/or jobber under the provi-
sions of this Article, such manufacturer and/or jobber shall be
liable for such underpayment, provided that claim for such undler-
payment shall have been made within two weeks of the next fol-
lowing customary accounting settlement period. W'hen any such
claim for underpayment has been made by a contractor, such con-
tractor shall open his books of account bearing on such claim for
inspection. This clause shall not be construed as diminishlingr t~he
rights of any employee to any claim for underpayment against. the
parties who caused such underpayment.
(b) M~anufacturers and jobbers who cause their garments to be
made by contractors shall immediately designate the number of
contractors to meet their business requirements. Within one week of
the effective date of thiis Code the manufacturers and jobbe-r~s shall
register the contractors so designated with the Code Author~ity,! and
thereafter register any and all subsequent changes.
(c) This does not abridge the right of the manufacturer or job-
bers to add to, suibtract from, or change their contractors, p~rovided~
that. such additions, subtractions, or changes conform to the business
4E requirements of the manufacturers or jobbers, and is not iltntended
;i+ to discriminate against the contractors or workers; andt providied
ip further, that such changes, or additions, are not made for the pur-
pose of evad-ing the established wage scale provided for in this Code
plus the contractor's overhead.
(d) The Code Authority, subject to veto by the Administrator,
shall have the power to prevent a practice on the part of a jobber
or mannufacturer of unjustly or unreasonably discriminating in the
distribution of work as between contractors wrhichi might unfairly
deprive. groups of workers of an opportunity to work.
(e) In the distribution of work, manufacturers and jobbers shall
have the right to employ contractors on the basis of type and the
quality of the work performed; on a competitive price basis, pro-
vided the price is suffcient to pay the minimum wages provided for
;ii~" in this Code and a reasonable overhead to the contractor; and ac-
cording to experience in obtaininga deliveries on schedule; but this
shall not be exercised as a device to evade the purpose of this Article.
(f) After further study the Code Authority, with the approval of
the Administrat~or, shall make rules and regulations to further effee-~
tuate the purpose of this Article as stated herein.
2. It shall be unfair competition for any manufacturer and/or
jobber to employ a contractor, or for any contractor to accept em-
ployment from a manufacturer and/or jobber except by use of the
uniform order blank to be promulgated by the Code Authority after
being approved by the Administrator.
A9ll garments manufactured or distributed subject to the provisions
of this Code shall bear an N.R.A. label to symbolize to purchasers
of saidgnarmentss the conditions under which they were manufac-
tured. Under the powers vested in him by Executive Order of Octo-
ber 14, 1933, and under grant of the necessary authority by the
Administrator, the Code Authority shall have the exclusive right in
this Industryr to issue and furnish said labels to the members thereof.
Each label shall bear a registration number especially assigned to
each employer by the Code Authorit~y and remain attached to such
garment when sold to the retail distributor. Any and all employers
may apply to thle Clode Authority for a permit to use such N.R.At.
label, which permit to use the label shall be granted to them, but
only if and so long as they comply with this Code. The Code
Authority, subject to approval by the Administrator, shall establish
rules and regulations and appropriate machinery for the issuance of
labels and the inspection, examination and supervision of the prac-
tice~s of employers using such labels in observ~ing th provisions of
this Code for the purpose of ascertaining the righto adepoe
to the continued use of said labels; of protecting purchasers in rely-
ing on, said labels; of insuring to each individual employer that the
symbolism of said label will be maintained by virtue of compliance
with the practices herein contained. by all other employers using
The charge made for such labels by the. Code Authority shall at
all times be subject to supervision and orders of the Administrator
and shall be not more: than an amount necessary to cover the actual
reasonable cost thereof, including actual printing, distribution, and
administration and supervision of the use thereof as hereinabove set
ARTICLE IX--TRADE PRACTICES
Thne following practices constitute unfair methods of competition
for membe rs of the Industry and are prohibited:
1. No returned merchandise may be accepted for credit except
for defects in manufacture, delay in delivery, or errors in shipment.
Further recommendations on th-us subject may be made by the Code
2. The C~ode Authority shall immediately formulate a uniform
order blank to be used in t~he sale of products. After such notice and
such hearing as the Administrator may provide, he may approve
said uni form order blank after which it will be unfair trade practice
for anyone engaged in the Industry to sell to any purchaser except
by the use of said uniform order blank.
8. .It shall be unfair trade practice to sell merchandise at a ensh
discount in excess of 8% ten day's E.O.1\I. (end of month) except
that merchandise shipped after the 25th b da of ai ny onth may be
dated as of the first dany of the following month~. Anticipation shall
not be azllowedl at a rate in excess; of 69c per annu~m.
4. The Code Authority shall im~medliately formiulate regulations
defining the practice of selling o~n memorandunnlm, consigrnment, or at
retail. After such regulations a re approved by t he Adm insist rator, it
shall be unfair trade practice for any-one engagedl in this Industry to
sell merchandise on miemorandumn, consignment, or at retail in viola-
5. It shall be unfair trade practice to make secret payment of
allowances or refundls, rebates, commissions. crledlits, or unearned
discounts, whether in th-e form of monley or otherw~ise, or the secret
extension to certain purchasers,. or to others also~ engaged in this
Industry of special serneces or privileges, not openly extended to all
on like terms and conditions.
6. It shalll be unfair trade practice to sell mnerchandise except upon
terms as expressly stated up~on the invoices pertinent to such sale.
7. It. shall bie unfair trade practice to resort to subterfugi to evade
ARTICLE X- TNC,*OPOLIES
This Code shall not b~e construed or appliedl to promote or permit
monopolies or mounopolistic pra~cties or to elimlinlate or opplress small
enlterprises or to dlisc~inuln a~tee against thlem.
1. This Code andl all thle provisions thereof are exrsl'tsl!y made
subject to the bright. of the Prleiden~tru in alccordlance w~ith the provi-
sions of subsectionl (b) of Section 10) of the Natio~nal Indlustrial
Recovery Act. from timie to time to cancel or mnodify any order,
approval. license, rule, or regu!ntion issuedl under Title I of said
Act and spc-ifically, but wTithlout limnitationl, to thle r~ight of' the
President to enaicel o~r mod~ify h~is applroval of this Code or any
conditions implosedl by him upon his approva\-l thereof.
2. This Code, exceptl as to provisions Irequiredl by the Act, may be
modlified on the bansis of experience or channges in cl.l Iircmtan1CeS, such
modification to be basedl up~on ap~plication to the Admlninistrantor and
such notice o~f hlearing as he shall specify, and to become effective
on alpproval byv the President.
The Administrator mayv after such notice and hearingr and after
making such ap~prop~riate amiendmnenlts as may? in lus discretionn be
necessary extend the operation of this Code to such other geogrrapht-
cal divisions as many be subject to the Act..
ARTICLEE XTIII-EFFECTIVE DerTE
The effective date of this Code shall be thle Fecond 1\Ionday after
it is approvedl by the President of the Unitedl States.