CODE OF FAIR COMPETITION
^ NETTED OUTERWEAR
AS APPROVED ON JUNE 2, 1934
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Approved Code No. 164-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
KNITTED OUTERWEAR INDUSTRY
As Approved on June 2, 1934
MoDIICATION OF CODE OF FAIR COMPETITION FOR THE KNTrrED
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 approval of a modifica-
tion of a Code of Fair Competition for the Knitted Outerwear
Industry, and hearings having been duly held thereon and the
annexed report on said modification, containing findings with respect
thereto; having been made and directed to the President:
NOW THEREFORE, on behalf of the' President of the United
States, f, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said modification and the Code as
constituted after being modified comply in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act, and do hereby order that said modification
be and it is hereby approved, and that the previous approval of said
Code is hereby modified to include an approval of said Code in its
entirety as modified.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
H. O. KING,
June 8, 193.,
REPORT TO THE PRESIDENT
The White House.
SIm: This is a report on the Hearing covering the Amendment to
the Code of Fair Competition for the Knitted Outerwear Industry, :
held in Room 2062, Department of Commerce Building, Washington,
D.C., Saturday May 12, 1934. The Amendment, which is attached,
was presented by duly qualified and authorized representatives of
the Code Authority of the Knitted Outerwear Industry, complying
with statutory requirements and being the agency that is adminis-
tering the Code .
In accordance with customary procedure every person who had
filed a request for appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
PROVISIONS OF TME ArMNDMENTS
There is one amendment giving the Code Authority power, in
case of emergency, to establish a "lowest reasonable cost" below
which it would be an unfair trade practice for any member of the
Industry to sell hisproducts.
The Deputy Administrator in his final report to me on said amendr
ments to said Code having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) The amendments to said Code and the Code as amended, ar
well designated to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of ob-
structions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the
general welfare by promoting the organization of industry for the
purpose of cooperative action among trade groups, by inducing and :
maintaining united action of labor and management under ade-
quate governmental sanction and supervision, by eliminating unfair i
competitive practices, by promoting the fullest possible utilization of
the present productive capacity of industries, by avoiding undue re- i
striction of production (except as may be temporarily required); by
increasing the consumption of industrial and agricultural products ,
through increasing purchasing power, by reducing and relieving
unemployment, by improving the standards of labor, and by other- i
wise rehabilitating industry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without linita-
I tion Subsedtion (a) of Section 3, Subsection (a) of Section 7, and
Subsection. (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendments on behalf of the Industry as a whole.
(d) The amendment and the Code as amended are not designed
it, $sd will not permit monopolies or monopolistic practices.
S (e) The amendment and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
rate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
ben. deprived of the right to be heard prior to approval of said
,.For these reasons this amendment has been approved.
: HUGH S. JOHNSON,
K iNE 2,1934.
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AMENDMENT TO CODE OF FAIR COMPETITION FOR THI.I
KNITTED OUTERWEAR INDUSTRY
Amend AiaTicL IX-ADMINISTRATION, by the addition of a 1 t
section to read as follows: .
(h) (1) When the Code Authority determines that an emergency "
exists in any division of the Industry, and that the cause thereof' .s
destructive cutting of prices and/or the cutting of the rates'paid' to
contractors for their work and services in manufacturing products ,
of such division, and that such cutting of prices and/or rates renders
ineffective or seriously endangers the maintenance of the provisions
of the Code, the Code Authority may cause to be determined the 6w- -
est reasonable cost of the product involved and/or of the work and
services rendered by the contractors involved as the case may be, such
determination to be subject to such notice and hearing as the Admin-
istrator may require. The Administrator may approve, disapprove
or modify the determination.
(2) Thereafter, during the period of the emergency.
(A) No member of the Industry shall sell or offer to sell any such
products of such division of the Industry for which the lowest rea-
sonable cost has been determined at such prices and upon such terms
and conditions of sale that the buyer of such product will pay less
therefore than the lowest reasonable cost of such products so deter-
(B) No member of the Industry shall offer to give or to take, or,
give or take any work on the contract-method of production for the
manufacture of any of the products of such division of the Industry,
for which the lowest reasonable cost has been determined, at such
rates or upon such terms and/or conditions that the contract-em-
ployer will pay less for such work and services so determined.
(3) When it appears that conditions are changed, the Code Au-
thority, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
(4) The term Contract-System of Production as used herein
means the system of having any of the products of the Industry
manufactured in whole or in part by contractors.
(5) The term Contract-Employer" as used herein shall include
every person, firm or corporation who uses or employs contractors.
Approved Code No. 164-Amendment No. 1.
Registry No. 243-1-02.
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