Approved Code No. 474-Amendment No. 2 Registry No. 231-16
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
IN PUERTO RICO
AS APPROVED ON APRIL 3. 1935
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WASHINGTON : 1935
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Approved Code No. 474-Amendment No. 2
Registry No. 231-16
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Approved Code No. 474--Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
NEEDLEWORK INDUSTRY IN PUERTO RICO
As Approved on April 3, 1935
APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
NEEDLDWORK INDUSTRY IN PUERTO RICO
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 an amend-
ment to the Code of Fair Competition for the Needlework Industry
in Puerto Rico, and the Deputy Administrator for Puerto Rico
having made and submitted to the National Industrial Recovery
Board his report on said amendment, containing his findings with
respect thereto, and the annexed report of the National Industrial
Recovery Board on said amendment, containing findings with respect
thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order go. 6859, Executive Order No. 6543-A and other-
wise; does hereby incorporate by reference said report of the Deputy
Administrator for Puerto Rico and the annexed report of the Na-
tional Industrial Recovery Board, and does hereby expressly concur
in and adopt the findings of fact made therein, and does find that the
said amendment and the Code as constituted after being amended
comply in all respects with the pertinent provisions and will promote
the policy and purposes of Title I of the National Industrial Recov-
ery Act; and does hereby order that said amendment to the Code
of Fair Competition for the Needlework Industry in Puerto Rico 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 amended, subject to the following condition:
1266180 -1749-18---35 (1 1
That this Order and Amendment shall become effective twenty
(20) days from the date hereof unless good cause to the contrary is
shown to the National Industrial Recovery Board before that time
and the National Industrial Recovery Board issues a subsequent
order staying or modifying this Order of Approval.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HIARRiTAN, Administrative Officer.
PRENTISS L. COONLEY,
WASHINGTON, D. C.,
April 3, 1935.
REPORT TO THE NATIONAL INDUSTRIAL RECOVERY
NATIONAL INDUSTRIAL RECOVERY BOARD,
National Recovery A ndinifration,
Washington, D. C.
GENTLEMEN: This is a report on the proposed Amendment to
Article II, Section 1, of the (ode of Fair Competition for the Needle-
work Industry in Puerto Rico, which section defines the Industry em-
braced by the Code. At the time the Code was originally proposed,
it was the intention of its proponents that all articles of needlework
produced or processed in Puerto Rico should be included under the
Code. The present definition contained in this Section reads as
The term Industry as used herein includes the manufacturing
and/or processing, including sewing, wholly or part, within the Terri-
tory of Puerto Rico, of articles having drawn work and/or em-
broidery done upon them by machine and/or by hand, including the
business of contracting with reference thereto."
This definition fails to include needlework done on any articles
which did not have on them drawn work and/or embroidery. There
is a considerable quantity of needlework in Puerto Rico consisting of
the manufacturing and/or processing of hand-made hems on piece
goods, to convert such articles into handkerchiefs. In order to carry
out the original desire of the Industry to embrace all needlework pro-
duced in Puerto Rico in this Code, it is proposed that this Section be
amended to read as follows:
"The term 'Industry' as used herein includes the manufacturing
and processing, including sewing, wholly or in part, within the Terri-
tory of Puerto Rico, of articles having drawn work and/or embroidery
done upon them by machine and/or by hand and/or the manufactur-
ing and/or processing of hand-made hems on piece goods to convert
such piece goods into handkerchiefs and/or decorative articles for the
home, such as (but without limitation) luncheon sets, pillow cases,
bedspreads, towels, including the business of contracting with refer-
This change in the definition will enable that section of the In-
dustry which is engaged in manufacturing and 'or processing articles
that do not have drawn work and, or embroidery thereon to receive
the benefits already bestowed upon the remainder of the Industry
as a result of the Code.
Article VII, Section 8 (f), authorizes the Code Authority to pro-
pose amendments to the Code. Pursuant to the said Section, the
Code Authority proposed this Amendment.
The Code was originally sponsored by the Puerto Rico Needlework
Association. This association represented in excess of ninety per
cent. of the volume of the business and of the membership of the
Puerto Rico Needlework Industry. Therefore, I find that it was
truly representative of said Industry.
The By-Laws of the Association allowed all members of the In-
dustry to join its membership, and I find that it imposed no inequi-
table restriction on membership.
There are about seven thousand factory workers, and approxi-
mately seventy thousand home-workers engaged in the Needlework
Industry in Puerto Rico, a considerable number of whom are not
included under the present definition of the Industry, but will be
embraced by the proposed Amendment. The standards of labor in
this Industry prior to the approval of the Code were very low.
In the factories the average working week was approximately forty-
eight hours. The home-workers were engaged in the needlework
occupation from sixty to seventy hours a week. Article III, Section
1, prohibits the working of employees in excess of forty hours in any
one week, or eight hours in any day, with the exception that em-
ployees may be permitted to work seventy-two hours overtime in any
calendar year, provided twice the normal wage rate is paid for such
overtime. The approval of the Amendment and the Code as amended
will thus result in a substantial increase in the number of people
employed in the Industry, and I so find.
The wages paid in this Industry have always been exceptionally
low. Prior to the Code, factory machine-workers were paid an
average of $3.32 per week of forty-eight hours, with many receiving
even less. Under the Code they receive a minimum of $5.00 for
a forty hour week. Factory hand-sewing and hand-embroidery
workers averaging from $2.00 to $2.10 per week prior to the Code
now receive a minimum of $3.00 per week under the Code. Before
the Code was approved three home-workers would work on the same
product in one home, and the aggregate earnings per week of the
three would be about $1.00. The piece-rates established under the
Code by the Piece Rates Commission result in a very marked in-
crease to these home-workers. The increase in wages and employees
resulting from the approval of the Amendment and the Code as
amended, will effect a considerable addition to the mass purchasing
power of the Island. When this increase is added to that which will
be effected by the approval of codes for other industries in the
Island, there will result a marked increase in the amount of goods
consumed in Puerto Rico, which goods will be imported principally
from the Mainland; consequently, one of the principal obstructions
which diminished the amount of commerce between Puerto' Rico and
the mainland and, indirectly, among the various States will be
removed, and I so find.
The increase in wages will remove a part of the burden from labor,
which has been carrying more than its share, but will not add an
unreasonable expense to the employer's cost, and I so find.
Further improvements will be brought about in the standards of
labor by the Code provision eliminating child labor. This abuse
was especially prevalent in Puerto Rico, and its elimination will be
one of the biggest accomplishments of the Code. No person under
sixteen years of age is allowed to be employed in the Industry under
the Code. Labor standards are likewise raised by the requirement
that employers should provide for the safety and health of em-
ployees, and that standards of safety and health should be submitted
by the Code Authority. Likewise, the prohibiting of stamping, cut-
ting, washing, pressing, folding, ribboning, and ticketing in the
home of employees is another most exemplary improvement in the
standards of labor.
The Executive Order approving the Code provides for a Needle-
work Commission to study and to make recommendations concern-
ing the question of competition between the Needlework Industry
on the mainland and in Puerto Rico. The purpose of the appoint-
ment of this Commission was to effect a better mutual understanding
of their problems between the members of the related mainland
industries and the Puerto Rico Industry. Likewise, the activities
of the Code Authority and the cooperative action in the Trade Asso-
ciation sponsoring the Code tend to promote the organization of
the Industry for the purpose of cooperative action among trade
groups, and I so find.
The provisions of Article IX as to price filing tend to prevent the
destructive price cutting which formerly existed in the Industry,
with the resulting inability to pay living wages. These provisions
contain sufficient safeguards to protect the small employers and
consumers from improper price fixing, and I so find.
There are no provisions in the Code which would tend to promote
monopolies or to eliminate or oppress small enterprises or that dis-
criminate against them, or that will permit monopolies or monopo-
The increased purchasing power resulting from the approval of
the Code will create additional demand for goods and commodities
of all sorts and kinds. In order to meet these demands, the produc-
tive capacity of industries will be promoted and utilized. This
increase in production will have the effect of beneficially encourag-
ing interstate commerce, both in the movement of raw material used
in the process of production and in the production of finished goods
and commodities. Thus, theoAmendment and the Code as amended
tend to promote the fullest possible utilization of the present pro-
ductive capacity of Industry, and I so find.
There exists at the present time an undue restriction of production
due to the r.bsence of demand for goods produced, which in turn is
caused by the depressed purchasing power. The increased pur-
chasing power effected by the approval of the Amendment and the
Code as amended will tend to avoid this undue restriction of produc-
tion, and I so find.
In addition to the findings above set forth and for the reasons
adduced above, I hereby find that:
(a) The amendment and the Code as amended comply in all
respects with the pertinent provisions of Title I of the Act, includ-
ing without limitation. Sub-Section (a) of Section 3, Sub-section (a)
of Section 7, and Sub-Section (b) of Section 10 thereof;
(b) The Association sponsoring the Code imposed no inequitable
restriction or admission to membership therein;
(c) The group sponsoring the Code was truly representative of
(d) The Amendment and the Code as amended are not designed
to promote monopoly or to eliminate or oppress small enterprises
and will not operate to discriminate against them and will not
permit monopolies or monopolistic practices;
(e) The Amendment and the Code as amended will tend to remove
obstructions to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof;
(f) The Amendment and the Code as amended will promote the
organization of Industry for the purpose of cooperative action among
(g) The Amendment and the Code as amended will induce and
maintain united action of labor and management under adequate
governmental sanctions and supervision;
(h) The Amendment and the Code as amended will tend to
eliminate unfair competitive practices;
(i) The Amendment and the Code as amended will tend to pro-
mote the fullest possible utilization of the present productive capacity
(j) The Amendment and the Code as amended will tend to avoid
undue restriction of production;
(k) The Amendment and the Code as amended will tend to in-
crease the consumption of industrial and agricultural products by
increasing purchasing power;
(1) The Amendment and the Code as amended will tend to reduce
and relieve unemployment;
(m) The Amendment and the Code as amended will tend to im-
prove the standards of labor;
(n) The Amendment and the Code as amended will tend otherwise
to rehabilitate Industry;
(e) Those engaged in other steps of the economic process were
not denied the right to be heard prior to the approval of this
Amendment and Code as amended.
It is recommended, therefore, that this Amendment and Code as
Amended be approved as submitted.
MARCH 30, 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE NEEDLEWORK INDUSTRY IN PUERTO RICO
Amend Article II, Section 1 to read as follows:
1. The term "Industry" as used herein includes the manufactur-
ing and processing, including sewing, wholly or in part, within the
Territory of Puerto Rico, of articles having drawn work and/or
embroidery done upon them by machine and/or by hand and/or the
manufacturing and or processing of hand-made hems on piece goods
to convert such piece goods into handkerchiefs and/or decorative
articles for the home, such as (but without limitation) luncheon
sets, pillow cases, bedspreads, towels, including the business of con-
tracting with reference thereto.
Approved Code No. 474-Ainmudment No. 2.
Registry No. 231-16.
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