NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COTTON GARMENT INDUSTRY
AS APPROVED ON AUGUST 21, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
r sale by the Superintendent of Documents, Wasngton, D Price 5 cents
For sale by the Superintendent of Documents, Washington, D.C. ------- Price 5 cents
Approved Code No. 118-Amendment No. 7
Registry No. 217-1--06
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
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.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Buildipg.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 118-Amendment No. 7
AMENDMENT TO CODE OF FAIR COMPETITION
COTTON GARMENT INDUSTRY
As Approved on August 21, 1934
APPROVING AMEDENDMENTS TO CODE OF FAIR COMPETITION FOR THE
CoTToN GARMENT INDUSTRY
Hearings having been duly held in full compliance with the pro-
visions of Title I of the National Industrial Recovery Act, approved
June 16, 1933, in connection with amendments of the Code of Fair
Competition for the Cotton Garment Industry, and the Administrator
having rendered his report thereon together with his recommenda-
tions and findings with respect thereto, and it appearing that the said
amendments will promote the policy and purposes of Title I of the
National Industrial Recovery Act:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and the Code of Fair Competition for the Cotton Garment Industry,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do hereby order that the said
amendments be and they are hereby approved, and that my previous
order of approval of said Code is hereby modified to include an
approval of said Code in its entirety as amended such approval to
take effect fourteen (14) days from the date hereof unless good cause
to the contrary is shown to the Administrator prior to that time and
I do issue a subsequent order to that effect.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
THE WHITE HOUSE,
August 21, 1934.
LETTER OF TRANSMITTAL
SThe White House.
SIR: On June 18, 1934, a public hearing was called to consider
amendments to the Code of Fair Competition for the Dress Manu-
facturing Industry, the Code of Fair Competition for the Men's
Clothing Industry, and the Code of Fair Competition for the Cot-
ton Garment Industry. These amendments to the Cotton Garment
Code are part of the results of this hearing.
The hearing showed no material reemployment by this Industry
subsequent to the effective date of the Code, which contained a pro-
vision arbitrarily fixing a work week of forty hours. The forty hour
work week of the Cotton Garment Industry Code has resulted in
unfair competition between members of the apparel industry under
it and members under other apparel codes which have provisions for
thirty-five and thirty-six hour work weeks.
To bring about more reemployment and correct the unfair compe-
tition existing because of the forty hour work week of the Cotton
Garment Code, and effectuate the purposes of the Act, it is necessary
to make a reduction to thirty-six hours, and, at the same time, make
a proportionate increase in the pay of employees so as to maintain
the same weekly wage rate as is provided in the Code as approved
November 17, 1933.
The Industry has given its assent to all of those amendments with
the exception of the ones relating to hours, (Section A of Article
III, reducing the maximum hours to 36), and wages, (Sections A
and B of Article IV, making the proportionate increase in the basic
wage). By refusing to assent to the hour and wage provisions, the
Industry has made it necessary for the amendments to be submitted
to you for approval.
These amendments are in five parts as follows:
Part 1 eliminates a provision of Article II, Section (a) which
gives the Administrator the right to hold such hearings as he may
deem necessary in order to determine whether the definition of prod-
ucts of the Industry may be modified or eliminated. This deleted
provision has served its purpose and is therefore being eliminated.
Part 2 amends Article III of the Code. Three sections (a), (b)
and (d) having served their purpose in the Code are deleted and a
new section (a) is added so as to provide for a 36 hour work week
for manufacturing employees instead of a 40 hour work week in the
Code as heretofore approved.
Part 3 amends Article IV of the Code. Several sections hav-
ing served their purposes in the Code are deleted and four new
sections are added. New section (a) provides for a minimum wage
of Twelve ($12.00) Dollars per week for the Southern Area and a
minimum wage of Thirteen ($13.00) Dollars per week for the
Northern Area. It further provides that employees shall be paid
at least the same wage per week of 36 hours as was paid for the
week of 40 hours, and further, that piece rates shall be increased by
not less than ten (10%) percent above the piece work rate prevailing
as of May 1, 1934.
New section (b) provides that in the Sheep-Lined and Leather
Garment Industry manufacturing employees are to be paid at a
minimum wage of Fourteen ($14.00) Dollars per week, and further
provides a specified minima to be paid skilled workers, and that
pieoe rates shall be increased by not less than ten (10%) percent over
and above the piece work rates prevailing as of May 1, 1934.
New section (c) provides a minimum wage to be paid learners
employed in the Industry.
New section (e) provides that handicapped employees may be
employed on light work at a wage below the minimum established
by the Code.
Part 4 contains new provisions to be added to the Code which are
pursuant to recent policy rulings of the Administration relative to
destructive price cutting and cost finding.
Part 5 is a new provision of the Code providing for an Industrial
Committee to study all applications for exemption from provisions
of the Code, by individual manufacturers, and to grant such exemp-
tions subject to the disapproval by the Administrator.
The Deputy Administrator in his final report to me on said amend-
ments to said Code, having found as herein set forth and on the
basis of all proceedings in this matter:
I find that:
"(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act, including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of industry for the purpose of
cooperative action of labor and management under adequate govern-
mental sanction and supervision, by eliminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (except as may be temporarily required), by increasing
purchasing power, by reducing and relieving unemployment, by im-
proving standards of labor and by otherwise rehabilitating industry.
"(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (b) of Section 10
"(c) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
"(d) 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.
"(e) 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 are recommended for your
hUGH S. JOHNSON,
AUGUST 21, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE COTTON GARMENT INDUSTRY
Article II is hereby amended to delete therefrom the second para-
graph of Section A, which begins with the words "The Products"
and ends with the words in this Code ".
Article III is hereby amended by deleting therefrom Sections A,
B and D, by substituting therefore the following Section A and by
redesignating Sections C and E as Sections B and C respectively.
"A. On and after October 1, 1934, no manufacturing employee
shall be permitted to work in excess of thirty-six (36) hours in any
one week nor in excess of eight (8) hours in any one day, except as
herein otherwise provided. The Industrial Committee, to the extent
provided in Article XV hereof, may make such determinations of
applications for exceptions and/or exemptions from the provisions
of this Section as it may deem proper and necessary, subject to the
disapproval of the Administrator as provided therein. No non-
manufacturing employee shall be permitted to work in excess of
forty (40) hours in any one week."
Article IV is hereby amended by deleting therefrom Section D,
by redesignating Sections E, G, H, I, J, K, L and M as Sections
D, F, G, H, I, J, K and L, respectively; and by redesignating Sec-
tion F as Section E and amending Sections A, B, C and E as follows:
"A. On and after October 1, 1934, except as hereinafter provided,
no employee shall be paid at less than the rate of Twelve Dollars
($12.00) per thirty-six (36) hour week in the Southern area, nor
at less than the rate of Thirteen Dollars ($13.00) per thirty-six (36)
hour week in the Northern area. Week workers and/or time work-
ers receiving above the minimum wage prior to this amendment
shall be paid at not less than the same wage per thirty-six (36)
hour week that they were paid per forty (40) hour week. Piece
rates shall be increased by not less than 10% over and above the
piece rates prevailing as of May 1, 1934, but in no event shall piece
workers receive less than the minimum weekly wage herein pro-
B. On and after October 1, 1934, in the Sheep-Lined and Leather
Garment Industry, no manufacturing employee shall be paid at less
than the rate of Fourteen Dollars ($14.00) per week. No operator
shall be paid at less than the rate of 45t per hour; and no short
knife cutter shall be paid at less than the rate of 75f per hour.
Manufacturing employees shall receive not less for thirty-six (36)
hours than they received for forty (40) hours. Piece rates shall
be increased by not less than 10% over and above the piece rates
prevailing May 1, 1934."
C. The number of learners employed at any time in the Cotton
Garment Industry or in a manufacturer's plant or factory shall not
exceed ten (10%) percent of the total number of manufacturing
employees in said plant. A learner shall be classified as a person
who has worked in this industry for a period of not more than twelve
(12) weeks in whatsoever capacity. Learners shall be paid not less
than the following:
First four weeks --------------------- 50% of the minimum wage
Second four weeks--------------------------- 66%% of the minimum wage
Third four weeks--------------------------- 80% of the minimum wage."
E. A person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmity, may be employed
on light work at a wage below the minimum established by this Code,
if the employer obtains from the State Authority, designated by
the United States Department of Labor, a certificate authorizing his
employment at such wages and for such hours as shall be stated in
the certificate. Such authority shall be guided by the instructions
of the United States Department of Labor in issuing certificates to
such persons. Each employer shall file monthly with the Code Au-
thority a list of all such persons employed by him, showing the
wages paid to and the maximum hours of work for such employee."
Article XI is hereby amended to include Section D which shall
read as follows:
D. The Standards of Fair Competition for the Industry with
reference to pricing practices are declared to be as follows:"
1. (a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the Industry or of
any other industry or the customers of either may at any time com-
plain to the Code Authority that any quoted price constitutes unfair
competition as destructive price cutting, imperiling small enterprise
or tending toward monopoly or the impairment of code wages and
The Code Authority shall within five (5) days afford an oppor-
tunity to the member quoting the price to answer such complaint and
shall within fourteen (14) days make a ruling or adjustment thereon.
If such ruling is not concurred in by either party to the complaint,
all papers shall be referred to the Research and Planning Division
of NRA which shall render a report and recommendation thereon to
"(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
"(c) When an emergency exists as to any given product, sale
below the stated minimum price of such product, in violation of
Section 2 hereof is forbidden."
"2. Emergency Provision&.-(a) If the Administrator, after in-
vestigation, shall at any time find both (1) that an emergency has
arisen within the Industry adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of a stated minimum price for a specified
product within the Industry for a limited period is necessary to miti-
gate the conditions constituting such emergency and to effectuate the
purposes of the Act, the Code Authority may cause an impartial
agency to investigate costs and to recommend to the Administrator
a determination of a stated minimum price of the product affected
by the emergency and thereupon the Administrator may proceed to
determine such stated minimum price.
(b) When the Administrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of
such emergency and to effectuate the purposes of the National In-
dustrial Recovery Act, he shall publish such price. Thereafter,
during such stated period, no member of the Industry shall sell such
specified products at a net realized price below said stated minimum
price and any such sale shall be deemed destructive price cutting.
From time to time, the Code Authority may recommend review or
reconsideration or the Administrator may cause any determination
hereunder to be reviewed or reconsidered and appropriate action
"3. Cost Fiunin.g.-The Code Authority shall cause to be formu-
lated methods of cost finding and accounting capable of use by all
members of the Industry, and shall submit such methods to the
Administrator for review. If approved by the Administrator, full
information concerning such methods shall be made available to all
members of the Industry. Thereafter, each member of the Indus-
try shall utilize such methods to the extent found practicable. Noth-
ing herein contained shall be construed to permit the Code Authority,
any agent thereof, or any member of the Industry to suggest uniform
additions, percentages of differentials or other uniform items of cost
which are designed to bring about arbitrary uniformity of costs or
Article XV shall be amended as follows:
The section presently known as Section B shall be known as Sec-
tion C and a new section shall be inserted in said Article to be known
as Section B as follows:
B. A Committee is hereby established to be known as the Indus-
trial Committee, to be appointed by the Administrator on the nom-
ination of the following: Three members by the Code Authority to
represent the Industry and three members by the Labor Advisory
Board of which one shall be without Union affiliation. The six so
selected shall select a Chairman to be approved by the Adminis-
trator. The powers and duties of this committee shall be as follows:
Digitized b, hie Inlernel Archive
in 2011 wilh luncding Irom
University ol Florida, George A. Smaihiers Libraries wilh support Irom L''iRASIS and the Sloan FoLindalion
hllp: www.archive.org details amendmenllocodeo8689unii
Approved Code #118 Registry No. 217-1-06
CODE OF FAIR COMPETITION
COTTON GARMENT INDUSTRY AMENDMENT NO. 6
As Approved on August 21, 1934
On page 4 of Amendment #6, paragraph 1, which reads Article
IX is amended by adding the following to be known as Section N ",
shall be changed to read Article IX is amended by adding the fol-
lowing to be known as Section M."
I S. GOVERNMENT PRINTING OFFICRi 194
6999 M990 Z9Zl 1
I 1III II I II I IIII fio 1 IfIsa1I 3A1 1 IHIn
V0llO1"80 -10 JO lIS8I3AINn