NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
i: KNITTED OUTERWEAR
AS APPROVED ON SEPTEMBER 25, 1934
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Approved Code No. 164-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
KNITTED OUTERWEAR INDUSTRY
As Approved on September 25, 1934
ORDER APPROVING AMENDMENTS TO CODE OF FAIR COMPETITION FOR
THE KNITTED OUTERWEAR 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 approval of amendments,
to a Code of Fair Competition for the Knitted Outerwear Industry,
and hearings having been duly held thereon and the annexed report on
said amendments, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
.States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amendments and the Code as
constituted after being amended 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 amendments be
and they are hereby approved, and that the previous approval of
said Code is hereby modified to include an approval of said Code
in its entirety as amended, subject to the following condition:
The amendment to Article II, Section (a), in so far as it includes
in the definition of the Industry "the manufacture of bathing suits
made of purchased knitted fabric and /or other textile materials",
shall become effective thirty (30) days from the date hereof provided
that the Deputy Administrator finds that adequate legal consent has
been given by the bathing suit manufacturers, so described, to inclu-
sion under this Code, upon the basis of a report from the Division
of Research and Planning and/or other reports that he may obtain.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
PRENTISS L. COONLET,
Acting Division Admtnistrator.
September 65, 1934.
REPORT TO THE PRESIDENT
The White House.
Smi: This is a report on the Hearing covering the Amendmen.
to the Code of Fair Competition for Knitted Outerwear Industry
held in the Oak Room of the Raleigh Hotel, Washington, D.,I
Thursday, June 7, 1934. The Amendments which are attached were;:I'
presented by a duly qualified and authorized representative of the.
Code Authority of the Knitted Outerwear Industry, complying with.
statutory requirements and being the agency. that is administering!
In accordance with customary procedure every person who hadi.
filed a request for appearance was freely heard in public and all..
statutory and regulatory requirements were complied with.
PROVISIONS OF THE AMENDMENTS
There are eight amendments as follows:
1. An amendment changing the definition of the Industry "to
include manufacturers of bathing suits from purchased knitted fabric
and/or other materials. These manufacturers were -not previously
covered by any other code.
2. An amendment to the "Hours provisions of the Code fixing
the hours of employment of certain classes of workers previously
excepted such as, repair shop crews, engineers, electricians, etc.
This amendment also changes the overtime operation of plants
operating on a single shift basis and limits the hours which partners
in any co-partnership firm may work on productive operations.
3. An amendment providing for mandatory contributions by
members of the Industry toward the expenses of administering the
4. An amendment to the Terms of Sale ", under Trade Practices,
providing for a cash discount on sales of knitted outerwear fabric.
5. An amendment to the "Returns" clause of Trade Practices..
providing for the return of knitted outerwear fabrics.
6. An amendment to the "Delivery Charges" clause of Trade
Practices providing for delivery charges on -knitted outerwear
7. An amendment to Trade Practices providing for the payment
by customers of all special "Accessories".
8. An amendment to Trade Practices covering "Advertising ."
The Deputy Administrator in his final report to me on said amend- .|i
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 are
i. well designed to promote the policies and purposes of Title I of the
I National Industrial Recovery Act including the removal of obstruc-
!tions to the free flow of interstate and foreign commerce which tend
SIto, diminish the amount thereof, and will provide for the general
:.el'fare by promoting the organization of industry for the purpose
of cooperative action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive practices, by promoting the fullest possible utilization of the
Present productive capacity of industries, by avoiding undue restric-
tibn.of production (except as may be temporarily required), by in-
c~qasing the consumption of industrial and agricultural products
l4iibgh increasing purchasing power, by reducing and relieving
:unemployment, by improving the standards of labor, and by other-
wise rehabilitating industry.
(b) The Code as amended complies in all respects with the perti-
neint provisions of said Title of said Act, including without limita-
tioi Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(e) The Code empowers the Code Authority to present the afore-
said amendments on behalf of the Industry as a whole.
(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons these amendments have been approved.
HUGH S. JOHNSON,
SEPTEMBER 25, 1934.
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AMENDMENT TO CODE OF FAIR COMPETITION FOIt
THE KNITTED OUTERWEAR INDUSTRY
Amend Article II, Section (a) so that the amended section will
read as follows:
(a) The term "Knitted Outerwear Industry" as used herein is
defined to mean and include the manufacture of bathing suits,
knitted or made of purchased knitted fabric and/or other mate-
rials, and/or the manufacture of knitted outerwear apparel for,
men, women and/or children, including infants and/or the manu-
facture of knitted fabrics for outerwear purposes, but shall not
include the products of the hosiery and/or underwear industries
and/or the manufacture of knitted woolen goods in self contained
woolen mills of the wool textile industry as defined in the respective
Codes of such industries and shall not include the manufacture of
ladies' and misses' coats, suits, dresses, ensembles, blouses, skirts,
and/or other garments (except as hereinbefore provided with re-
,spect to bathing suits), made of purchased knitted fabrics or of
fabrics not made by machinery owned by the garment manufacturer.
Amend Article III, Section (a) so that the amended section will
read as follows:
(a) Excepting as hereinafter provided, no employee in the
Knitted Outerwear Industry shall be permitted to work in excess
of forty (40) hours per week or eight (8) hours in any twenty-
four (24) hour period, and the hours in each week during which
any employee shall have worked in other plants and/or in other
industries shall be included in such forty (40) hours.
Amend Article III, by striking out Sections (c), (d), (e) and
(f) and substituting therefore the following Sections:
(c) Except as provided in Section (f) of this Article no engi-
neer, electrician, cleaner or member of a repair shop crew or shipping
crew shall be permitted to work in excess of forty-four (44) hours
in any one week, or nine (9) hours in any twenty-four (24) hour
(d) No fireman or watchman shall be permitted to work in excess
of fifty-six (56) hours per week, as averaged over a consecutive
two (2) week period provided that at least one day off shall be
allowed in every fourteen (14) day period.
(e) No employee engaged in a supervisory capacity and earning
less than thirty-five dollars ($35) per week shall be permitted to
work in excess of ten per cent (10%) additional to the hours of work
herein provided for the employees of the department in which he
(she) is engaged. Employees engaged in a supervisory capacity
earning thirty-five dollars ($35) per week or more are not limited
as to the hours of work.
(f) Employers in the Knitted Outerwear Industry shall not oper-
ate productive machinery in the Knitted Outerwear Industry for
more than two (2) shifts of forty (40) hours each in any week, and
Sno other machinery used in the Knitted Outerwear Industry shall
be operated for more than one (1) shift of forty (40) hours during
any week; except that any employer may elect by notifying the Code
iAuthority to operate all machinery -for one shift of forty (40)
hours per week and in such event the Code Authority may give
permission to such manufacturer to engage his employees and to
operate his machinery for thirty-two (32) hours overtime during
,each six (6) months' period. This overtime may be used to meet
Sthe needs of the manufacturer during the six (6) months' period
following his election to operate one shift of forty (40) hours per
week, and no additional overtime may be granted during said six
(6) months' period, excepting with the approval of the Adminis-
trator. During the period of operating under said overtime allow-
-ance, operations shall not exceed forty-eight (48) hours in any one
week or ten (10) hours in any twenty-four (24) hour period, and
provided further, that all such hours additional to the daily or
weekly maximums provided in this Article shall be paid for at not
less than the rate of one and one-third the normal rate of pay. The
hours in each week during which any machinery may be operated in
the production of products of other employers and/or industries
shall be included in calculating the hours of operation of such
machinery as limited by this provision.
(g) Members of the Industry and partners in any co-partnership
firm that is a member of the Industry and officers of any corporation
which is a member of the Industry, who are personally engaged in
the manual or mechanical process of manufacture, shall be subject
to the hour provisions of this Code.
Amend Article IX, Section (f) to read as follows:
(f) 1. It being found necessary in order to support the adminis-
tration of this Code and to maintain the standards of fair compe-
tition established hereunder and to effectuate the policy of the Act,
the Code Authority is authorized:
(A) to incur reasonable obligations as are necessary and proper
for the foregoing purposes, and to meet such obligations out of funds
i which may be raised as hereinafter provided and which shall be held
in trust for the purposes of the Code;
(B) to submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
(C) After such budget and basis of contribution have been
approved by the Administrator, to determine and obtain equitable
contribution as above set forth by all members of the Industry, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
2. Each member of the Industry shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regu-
lations pertaining thereto issued by the Administrator. Only mem-
bers of the Industry complying with the Code and contributing to
the expenses of its administration as hereinabove provided, unless
duly exempted from making such contributions, shall be etitled4:
participate in the selection of members of the Code Authority or' ij
receive the benefits of any of its voluntary activities or to make fB
of any emblem or insignia of the National Recovery Administratirl
3. The Code Authority shall neither incur nor pay any obligation:
substantially in excess of the amount thereof, as estimated in iiai
approved budget, and shall in no event exceed the tbtal amount co r -
tained in the approved budget, except upon approval of the Admin i
istrator; and no subsequent budget shall contain any deficiency itea&'|
for expenditures in excess of prior budget estimates except those b
which the Administrator shall have so approved. "
Amend Article X, Section (e) by the addition of two new sen- a
tences, and other slight changes so that the amended section will
read as follows:
(e) Terms of Sale.-(1) No member of the Industry shall sell or :i
offer to sell knitted outerwear products upon terms more favorable
to the buyer than a discount of three per cent (3%) to the wholesale
trade for payment on the tenth (10th) day of the calendar 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
more favorable to the buyer than a discount of eight per cent (8%)
for payment on the tenth (10th) day of the calendar month follow-
ing the designated shipping date or equivalent discount for longer
periods. For the purpose of these provisions, the twenty-fifth
(25th) calendar day shall be considered the end of the month. (3)
No member of the Industry shall sell or offer to sell knitted outer-
wear fabrics upon terms more favorable to the buyer than a discount
of one per cent (1%) for payment on the tenth (10th) day of the
calendar month following the designated shipping date, or net terms
for payment sixty (60) days after shipment, or equivalent terms
for longer periods. (4) Anticipation and interest after due date
shall be at the rate of six percent (6%) per annum.
Amend Article X, Section (f) by the addition of a new sentence,
so that the amended section will read as follows:
(f) Returns.-No member of the Industry shall accept the return
of garments that have been worn, or merchandise not worn but which K
has been accepted by a customer, except under circumstances to be
defined by the Code Authority. No member of the Industry shall
accept the return of knitted outerwear fabrics except for defects in
material and/or manufacture and in such cases only when return is
made within ten days after receipt of goods and before the same arel;**,i
cut, except under circumstances to be defined by the Code Authority.
Amend Article X, Section (h) by the addition of a new sentence,,
so that the amended section will read as follows:
(h) Delivery Charges-All knitted outerwear products shall liei
sold F.O.B. shipping point, except for deliveries within metro- ::
politan areas local to the shipper, subject to exceptions approved by' -:
the Code Authority. All knitted outerwear fabrics shall be sotli
F.O.B. shipping point or F.O.B. New York City.
Amend Article X by the addition of two new sections to read as
(i) Accessories.-Unless the customer supplies the same or pays
the cost thereof, no member of the Industry shall give or supply to
:any customer any special accessories including, but without limita-
tion, labels, hangers, boxes or box tops, circulars and/or fancy string
tags with or without the customer's name and/or trade mark thereon.
Nothing in this section shall prohibit the furnishing of standard
accessories by a manufacturer, at his own expense, to all customers
(j) Advertising Allowances.-(1) No member of the Industry
shall contribute to the advertising of a customer, whether by rebate,
refund, allowance or other payment, made directly or indirectly,
in money or merchandise, toward the advertising of a customer,
. except where such advertising features the name, the trade mark or
trade name of such member, and the merchandise bears such mem-
ber's own label and except in compliance with the following condi-
(A) Contributions to advertising of a customer shall be by sep-
arate agreement, which shall set forth the definite amount con-
tributed by the member of this Industry, and the nature and amount
of advertising, and the period to be covered shall be specifically set
forth, so that the use of said contribution may be identified. No
advertising contribution agreement shall be used as a rebate, refund
or merchandise allowance, but shall be for advertising only and con-
tributions not used for advertisements, as set forth in the agreement,
shall be returned to the member of the Industry.
(B) Advertising contributions shall be offered to all customers
on an equal basis.
(C) Full records of all advertising contribution agreements shall
be maintained by the members of this Industry so as to permit
auditing at any time of said contributions and their use, in accord-
ance with this section, and accurate reports, based on such records,
shall be furnished when required by the Code Authority.
Approved Code No. 164-Amendment No. 2.
Registry No. 243-1-02.
UNIVERSITY OF FLORIDA
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