Apprved odeNo. 99 Rgisry N. 176-O
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON FEBRUARY 19, 1934
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UNIV. O FL L ..
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For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 299
Registry No. 1716--01
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Approved Code No. 299
CODE OF FAIR COMPETITION
ACADEMIC COSTUME INDUSTRY
As Approved on February 19, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE ACADEMIC COSTUME
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 Code of
Fair Competition for the Academic Costume Industry, and hearings
having been duly held thereon and the annexed report on said Code,
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 Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
A dmi nis rator for Industrial Recovery.
A. D. WHITESIDE,
Division A dm iSnistrator.
February 19, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: Public hearing on the Code of Fair Compettition for the
Academic Costume Industry as proposed by the National Guild of
Academic Costumers was conducted in Washington on October 18,
1933. Every person who requested an appearance was fairly heard
in accordance with statutory and regulatory requirements. The
Code has the approval of the Labor, Industrial and Consumers'
Advisory Boards of the National Recovery Administration and of
the Legal Division. The Chairman of the Code Committee of the
submitting association, upon authorization of the Committee, has
also indicated his approval of the final draft of the Code on behalf
of the industry.
DESCRIPTION OF THE INDUSTRY
The industry, as defined in the Code, includes the manufacture,
sale and rental of caps, gowns and hoods for use in schools and col-
leges, and the manufacture, sale and rental of clerical, choir and
The manufacture and rental of academic costumes comprise about
90% of the total industry and of this business fully 80% entails only
the rental of caps, gowns and hoods. The manufacturing phase of
the industry is therefore of minor importance and it may be construed
almost entirely as a service operation.
RESUME OF THE CODE
Article I sets forth certain definitions.
Article II stipulates a maximum forty hour week for employees
engaged in the mechanical processes of manufacture, forty-eight
hours a week for janitors and watchmen, and a forty-four hour week
for all other employees except that overtime is permitted as neces-
sitated by the peculiar condition of the industry which is concentrated
in about a ten week period from the middle of April to the end of
Article III sets minimum wages of $14 per week for manufacturing
employees and for all other employees in cities of 250,000 population
and over and $12 per week in cities or places of less than that
Article IV prohibits child labor and contains the labor provisions
mandatory under the Act.
Article V provides for the establishment of a Code Authority by
the Nationail Guild of Academic Costumers and the Administrator.
It (mnpowers tihe Code Authority to collect statistics of the industry,
to Inrovide for fair trnde practices, to enforce the provisions of the
Code, to cooperate with tle Administrator in regulating the use of
an N.R.A. insignia or label and to make recommendations for
representative costs below which products of the industry shall not
be rented or sold.
Article VI provides for the use of an N.R.A. label on garments
or containers for the purpose of informing customers of conditions
under which products of the industry are manufactured or dis-
Article VII prohibits trade practices which in the past have
greatly injured the industry.
Article VIII states the method of modifying or amlending the
Article IX prohibits monopolies or discrimination against small
Article X recognizes the purpose of the National Recovery Act
to increase real purchasing power and provides that piice increase
shall be limited to actual additional increases in costs.
Article XI provides for the application of the (ode to persons
employed on the products of the industry although employed by firms
engaged in other lines of business.
Article XII states the effective date of the Code.
The Academic Costume Industry employed more people during
1933 than during 1928. The reduction of hours provided for in the
Code will probably increase employment about 20%. and the in-
creasing trend toward the use of caps and gowns in secondary schools
will probably provide a still greater increase in employment.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimin-
ating 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 tempor-
arily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by reduc-
ing and relieving unemployment, by improving standards of labor,
and by otherwise rehabilitating industry.
(b) Said industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a. major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant.group is
an industrial group truly representative of the aforesaid industry;
and that said group imposes no inequitable restrictions on admis-
sion to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is 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 the Code has been approved.
HUGH S. JOHNSON,
FEBRUARY 19, 1934.
CODE OF FAIR COMPETITION FOR THE ACADEMIC
To effectuate the policies of Title I of the National Recovery Act,
this Code is established as a Code of Fair Competition for the
Academic Costume Industry, and shall be the standard of fair
competition for this Industry and shall be binding upon every
1. The term "Industry" as used herein includes the manufacture,
sale, or rental of caps, gowns and hoods for use in schools and
colleges, and the manufacture, sale, or rental of clerical, choir, and
2. The term Member of the Industry as used herein includes,
but without limitation, any individual, partnership, association, cor-
poration, or other form of enterprise engaged in the Industry, either
as an employer or on his own behalf.
3. The term employee as used herein includes any and all
persons engaged in the Industry, however compensated, except a
Member of the Industry.
4. The term "employer" as used herein includes any one for
whose benefit, or on whose business such employee is engaged in said
Industry on his own behalf.
5. The terms "Administrator" and "Act" as used herein shall
mean respectively the Administrator for Industrial Recovery and
Title I of the National Industrial Recovery Act.
6. Population for the purposes of this Code shall be determined
by reference to the Federal Census of 1930.
ARTICLE II-HOURS OF LABOR
1. No employee engaged in the mechanical processes of manufac-
ture shall be permitted to work more than forty (40) hours in any
2. No clerical, office, store, or warehouse employees nor other
employees not included within the provisions of Sections 1, 3, 4
and 5 hereof, shall be permitted to work in excess of forty-four (44)
hours in any one week, except that in emergency and other peak
periods, not to exceed ten (10) weeks in any calendar year such
employees may be permitted to work a maximum of forty-eight (48)
hours in any one week, provided, however, that such employees
shall be paid not less than time and one-third the normal rate per
hour for all hours worked in excess of forty-four (44) hours in
any one week.
3. No shipping clerk, stock clerk, driver or porter shall be per-
mitted to work in excess of forty-four (44) hours in any one week,
except that this provision shall not apply to such employees during
a period not to exceed ten (10) weeks in any calendar year; pro-
vided, however, that such employees be paid not less than time and
one-third the normal rate per hour for all hours worked in excess of
forty-four (44) hours in any one week.
4. No janitor nor watchman shall be permitted to work in excess
of forty-eight (48) hours in any one week.
5. The provisions of this Article shall not apply to employees en-
gaged in executive, managerial, or supervisory capacity and receiv-
ing thirty-five dollars ($35.00) per week or more, or to outside
6. No overtime beyond that therein provided for shall be per-
mitted, except upon the authorization of the Code Authority, under
such conditions and upon such terms as the Administrator may
7. No employee shall be permitted to work for a total number of
hours in excess of the number of hours prescribed for such week and
day, whether employed by one or more employers.
8. No work shall be carried on in homes or tenement houses, or in
unsanitary buildings, or in buildings unsafe on account of fire or
dangerous to health.
1. No employee engaged in mechanical processes of manufacturing
shall be paid at less than the rate of $14.00 per week of forty (40)
2. No clerical, office, store, warehouse or other employee, not in-
cluded within the term of the foregoing Section, shall be paid at
less than the rate of $14.00 per week when employed in cities of
250,000 population or over, nor less than at the rate of $12.00 per
week when employed in cities or places of 250,000 or less.
3. No employee whose normal full time weekly hours for the four
weeks ending on the effective date of this Code are reduced by less
than 20, shall have his full time weekly earnings reduced. Em-
ployees whose full time weekly hours are reduced by more than said
20% shall have the said earnings equitably adjusted.
All adjustments of wage rates made in accordance with this pro-
vision shall be reported to the Code Authority within thirty (30)
days of the effective date of this Code. The Code Authority shall
have the power to investigate and adjust complaints arising under
this provision. Adjustments by the Code Authority modifying pre-
vious adjustments shall be subject to review by the Administrator.
4. This Article establishes minimum rates of pay which shall
apply irrespective of whether an employee is actually compensated
on a time rate, piece work or other basis. This Article and Section
shall not apply to outside salesmen.
5. Clean, sanitary, light, healthful and safe working conditions
shall be provided for all employees.
ARTICLE IV-GENERAL LABOR PROVISIONS
1. No person under sixteen (16) years of age shall be employed
in the Industry. No person under eighteen (18) years of age shall be
employed in operations or occupations which are hazardous in na-
ture or dangerous to health. The Code Authority shall submit to
the Administrator not later than fifteen (15) days after the effective
date. a list of such operations or occupations. In any state an em-
ployer shall be deemed to have complied with the provisions as to
age if he shall have on file a certificate or permit duly issued by the
Authority in such state empowered to issue employment or age
certificates or permit showing that the employee is of the required age.
2. (a) Employees shall have the right to organize and bargain
collectively, 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.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to re-
frain from joining, organizing. or assisting a labor organization of
his own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
3. No employer shall reclassify employees or duties of occupations
performed for the purpose of defeating the provisions 6f the Act
or of this Code.
4. No provisions in this Code shall supersede any law within any
State which imposes more stringent requirements on employers as
to age of employees, wages, hours of work, or as to safety, health, or
sanitary conditions, or insurance, or fire protection, or general work-
ing conditions, than are imposed by this Code.
5. All employers shall post complete copies of Articles I, II, III,
IV, and V of this Code in conspicuous places accessible to employees.
1. (a) There shall forthwith be constituted a Code Authority con-
sisting of seven (7) or more members, to be selected in the following
Seven (7) members shall be selected by the National Guild of
Academic Costumers. In addition thereto the Administrator may
appoint not more than three (3) additional members without vote
and without expense to the Industry, to represent such groups or
interests or such governmental agencies as he may designate. Such
members shall receive notice of and may sit at all meetings of the
(b) Each trade or industrial association directly or indirectly
participating in the selection or activities of the Code Authority
shall (1) impose no inequitable restrictions on membership, and (2)
submit to the Administrator true copies of its articles of association,
by-laws, regulations and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of this Act.
(c) In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with the
provisions of the Act, the Administrator may provide such hearings
as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other:e-
spects comply with the provisions of the Act, may require an ap-
propriate modification in the method of selection of the Code
(d) An appeal from any action of the Code Authority affecting
the rights of any person subject to this Code may be taken to the
(e) Members of the Industry shall be entitled to participate in
and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by assenting to
and complying with the requirements of this Code and sustaining
their reasonable share of the expenses of its administration. Such
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority, on the basis of volume of business
and or such other factors as may be deemed equitable.
(f) Nothing contained in this Code shall constitute the members
of the Code Authority partners for any purpose. Nor shall any
member of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent, or employee of the
Code Authority. Nor shall any member of the Code Authority be
liable to anyone for any action or omission to act under the Code,
except for his own wilful misfeasance or non-feasance.
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act:
(a) To adopt by-laws and furnish to the Administrator true and
correct, copies of the by-laws and all amendments thereto imme-
diately upon their adoption, together with true and correct copies
of all rules and regulations which may be adopted by the Code
Authority and true and correct minutes of all of its meetings, all
certified to by the Secretary of the Code Authority.
(b) To elect officers and to assign to them such duties as it may
consider advisable, to provide rules for its procedure, and generally
to act as the administrative agency of this Code, in accordance with
the terms of the Act and the principles herein set forth.
(c) To receive, investigate and adjust complaints of violations of
this Code subject to such rules and regulations as may be from time
to time promulgated by the Administrator and to make recommenda-
tions based upon such investigations to the proper authorities for
the prosecution of such violations.
(d) To obtain from members of the Industry periodical reports in
such form and at such times with respect to wages, hours of labor,
conditions of employment, number of employees, and such other mat-
ters pertinent to the purposes of this Code as the Code Authority
may require for the administration and enforcement of this Code,
and to submit reports to the Administrator in such form and at such
times as he may require in order that the President may be informed
as to the observance or nonobservance of this Code and to further
effectuate the policies of the Act.
(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 agencies the cost thereof; provided, that
such agencies shall at all times be subject to and comply with the
provisions of this Code; and provided further that nothing herein
shall relieve the Code Authority of any of its duties and responsi-
(f) To coordinate the administration of this Code with such other
codes, if any, as may be related to the Academic Costume Industry,
or any subdivision thereof, with a view to promoting joint and
harmonious action upon matters of common interest.
(g) 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 be used except for the administering
of this Code.
(h) To cooperate with the Administrator in regulating the use
of an N.R.A. insignia and an N.R.A. label as hereinafter provided
(i) To make recommendations for fair trade practices including
provisions against selling below cost and otherwise to assist the
Administrator in effecting the purpose of this Code and the Act.
Any such recommendations upon the approval of the Administrator,
after such hearing and notice as he shall prescribe, shall become a
part of this Code.
(j) To investigate and adopt a uniform system of cost account-
ing for products manufactured by the Industry which, when so
adopted, shall become a standard for the Industry; except that cost
accounting systems now in use by members of the Industry, which
are substantially the same as the system recommended or which re-
flect the same basis of establishing costs, may be retained.
(k) To study known costs involved in the renting of products
of the Industry insofar as they are common to all firms engaged in
such rental business and, after such study to recommend to the
Administrator the lowest representative cost of such rental service
and after his approval no member of the Industry shall rent below
such representative cost. Such representative cost as above defined
shall, however, be reconsidered and if found advisable, revised from
time to time at reasonable intervals.
3. If the Administrator shall determine that any action of a code
authority or any agency thereof is unfair or unjust or contrary to
the public interest, the Administrator may require that such action
be suspended for a period of not to exceed thirty days to afford an
opportunity for investigation of the merits of such action and
further consideration by such code authority or agency pending
final action, which shall' be taken only upon approval by the
4. In addition to the information required to be submitted to the
Code Authority, all members of the Industry shall furnish such ade-
quate information as the Administrator may deem necessary for the
purposes recited in Section 3 (a) of the Act to such federal and state
agencies as the Administrator may designate. Nothing in this Code
shall relieve any one of any existing obligation to furnish reports
to government agencies.
All garments manufactured and/or containers for such garments
distributed subject to the provisions of this Code may bear an
N. R. A. label to symbolize to purchasers, or persons renting said
garments, the conditions under which they are manufactured or dis-
tributed. Under the powers vested in him by the executive order of
October 14, 1933, and under grant of necessary authority by the
Administrator, the Code Authority shall have the exclusive right
in this Industry to issue and furnish said labels to the members
thereof. Each label shall bear a registration number especially as-
signed to each employer by the Code Authority, and remain attached
to such garment and 'or container. Any and all employers may
apply to the Code Authority for a permit to use such N. R. A. 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 the approval by the Administrator, shall establish rules
and regulations and appropriate machinery for the issuance of la-
bels and inspection and supervision of the practices of employers
using such.labels in observing the provisions of this Code for the
purpose of ascertaining the right of said employer to the continued
use of said labels; of protecting purchasers in relying 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.
ARTICLE VII-TRADE PRACTICES
The following practices constitute unfair methods of competition
for the members of the Industry and are prohibited:
1. The false marking or branding of any product of the Industry
which has the tendency to mislead or deceive customers or prospec-
tive customers, whether as to the grade, quality, quantity, substance,
character, nature, origin, size, finish, or preparation of any product
of the Industry, or otherwise.
2. The making or causing or knowingly permitting to be made
or published any false, materially inaccurate, or deceptive statement
by way of advertisement or otherwise, whether concerning the grade,
quality, quantity, substance, character, nature, origin, size, finish, or
preparation of any product of the Industry, or the credit terms,
values, policies, or services of any member of the industry, or other-
wise, having the tendency or capacity to mislead or deceive customers
or prospective customers.
3. Directly or indirectly to give or permit to be given or to offer
to give to any school or college or to students, faculty members, or
officials thereof, free gowns, caps, charity, or other gifts whether in
the form of moneyor o otherwisee or the placing of advertisements in
6cl11ol or college publlicati(ons or the allowance of special prices or
discounts on other merchandise sold or rented by a member of the
industry or his sales representative.
4. Maliciously inducing or attempting to induce the breach of an
existing oral or written contract between a competitor and his
customer or source of supply, or interfering or obstructing the
performance of any such contractual duties or services.
5. The payment or allowance of secret rebates, refunds, commis-
sions, credits, or unearned discounts, whether in the form of money
or otherwise. Nothing in this paragraph shall apply to bona fide
commissions allowed to a sales representative in a school or college
where the account has been handled by a local representative of a
member of the industry prior to August 16, 1933, even though such
representative may be a faculty member, or official of the school or
college. These provisions shall not be construed to prohibit a
general distribution of articles commonly used as advertising, except
so far as such articles are actually for commercial bribery as
6. The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representations or by false dispar-
agement of the grade or quality of their goods.
7. The publishing or circularizing of threats or suits for infringe-
ment of patents or trade marks or of any other legal proceedings
not in good faith, with the tendency or effect of harassing competi-
tors or intimidating their customers.
8. Securing confidential information concerning the business of
a competitor by a false or misleading statement or representation,
by a false impersonation of one in authority, by bribery, or by any
other unfair method.
9. Withholding from or inserting in any invoice or statement
figures which make the invoice or statement a false record wholly
or in part of the actual transaction.
10. Any sale on the installment plan, which gives the purchaser
the privilege of return with cancellation of part of the purchase
price, shall be deemed a rental and shall be subject to the provisions
of this Code.
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) -of Section 10 of the Act, from time to time
to cancel and modify any order, approval, license, rule, or regulation
issued under said Act.
2. This Code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances,
such modifications to be based upon application to the Administrator
and such notice and hearing, as he shall specify, and to become
effective on the approval of the Administrator.
ARTICLE IX--M MONOPOLIES
No provisions of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE X-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual cost
should be delayed. But when made such increases should, so far
as possible, be limited to actual additional increases in the seller's
Any employer, who at any time, shall manufacture, sell or rent
any article or articles subject to the provisions of this Code, shall be
bound by all provisions of this Code as to all employees engaged in
whole or in part in such manufacture, sale or rental. In case any
employee shall be engaged partly in such manufacture, sale or rental
and partly in the manufacture, sale or rental of goods of another
character, covered by another approved Code, this Code shall apply
only to such portions of such employee's time as is applied to the
manufacture, sale or rental of articles subject to this Code.
ARTICLE XII-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 299.
Registry No. 1716-01.
UNIVERSITY OF FLORIDA
3 1262 08582 8928