Code of fair competition for the men's clothing industry

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Title:
Code of fair competition for the men's clothing industry as submitted to the Administration July 19, 1933 and as approved by President Roosevelt on August 26, 1933
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15 p. : ; 23 cm.
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English
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United States -- National Recovery Administration
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Supt. of Documents
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Washington, D.C
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Men's clothing industry -- Law and legislation -- United States   ( lcsh )
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federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Cover title
General Note:
"Registry No. 216-1-06"

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University of Florida
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oclc - 249165169
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UNIVERSITY OF FLORIDA


3 1262 08482 9844


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


MEN'S CLOTHING INDUSTRY

AS SUBMITTED TO THE ADMINISTRATOR JULY 19, 1933
AND AS APPROVED BY PRESIDENT ROOSEVELT
ON AUGUST 26, 1933




REGISTRY No. 216-1-06


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


I sle b the Supeintendent of Docuents W hinton D.CPrie 5 ents
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents


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in 2011 wilh Iunding from
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EXECUTIVE ORDER


CODE OF FAIR COMPETITION FOR THE MEN'S CLOTHING 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 my approval of a Code of
Fair Competition for the Men's Clothing Industry, and hearings
having been held thereon and the Administrator having rendered
his report containing an analysis of the said Code of Fair Competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said Code of Fair Com-
petition complies in all respects with the pertinent provisions of Title
I of said Act and that the requirements of clauses (1) and (2) of sub-
section (a) of Section 3 of the said Act have been met:
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 other-
wise, do adopt and approve the report, recommendations, and findings
of the Administrator and do order that the said Code of Fair Compe-
tition be and it is hereby approved.
(Signed) FRANKLIN D. ROOSEVELT.
(Signed) HUGH S. JOHNSON,
Adm in istrator.
THE WHITE HOUSE,
August 26, 1933.
902--33 (1













CODE OF FAIR COMPETITION FOR THE MEN'S CLOTHING
INDUSTRY
To effectuate the policy of Title I of the National Industrial Recov-
ery Act, during the period of the emergency, by reducing and relieving
unemployment, improving the standards of labor, eliminating com-
petitive practices destructive of the interests of the public, employees,
and employers, relieving the disastrous effects of overcapacity, and
otherwise rehabilitating the Clothing Industry and by increasing the
consumption of industrial and agricultural products by increasing
purchasing power, and in other respects, the following provisions are
established as a code of fair competition for the Clothing Industry:

I-DEFINITIONS
The term "Clothing Industry" as used herein is defined to mean
the manufacture of men's, boys', and children's clothing, uniforms,
single knee pants, single pants, and men's summer clothing (exclusive
of cotton wash suits).
The term "effective date" as used herein is defined to be the elev-
enth day of September 1933.
The term "persons" shall include, but without limitation, natural
persons, partnerships, associations, and corporations.

II
On and after the effective date, the minimum wage paid by em-
ployers in the Clothing Industry to any of their manufacturing em-
ployees shall be at the rate of forty cents (406) per hour when em-
ployed in the northern section of the Industry, and at the rate of
thirty-seven cents (370) per hour when employed in the southern
section of the Industry; and to any nonmanufacturing employee the
minimum weekly wage paid shall be fourteen dollars ($14.00) in the
northern section and thirteen dollars ($13.00) in the southern section.
"Southern section" shall include Alabama, Arkansas, Georgia, Loui-
siana, Mississippi, North Carolina, Oklahoma, South Carolina,
Tennessee, and Texas.
The minimum wage paid by employers to employees working on
single knee pants shall be at the rate of thirty-seven cents (370) per
hour.
(a) On and after the effective date, the minimum wage which shall
be paid to cutters shall be at the rate of One Dollar ($1.00) per
hour, and the minimum wage which shall be paid to off-pressers shall
be at the rate of seventy-five cents (750) per hour.
(b) The existing amounts by which wages in the higher-paid
classes, up to classes of employees receiving Thirty Dollars ($30.00)
per week, exceed wages in the lowest-paid substantial classes shall
be maintained.








(c) Any increase of the minimum wage made effective between the
date of the filing of this Code, to wit, July 14, 1933, and the effective
date, shall be disregarded and shall have no effect in connection with
determining the wages to be paid in the higher-price classes as pro-
vided for in Section II (b) above.
(d) The Men's Clothing Code Authority may appoint a committee
to supervise the execution of the foregoing provisions.
(e) The provisions for the minimum wage established in this Code
shall constitute a guaranteed minimum rate of pay in connection with
both a time rate or a piecework basis of compensation.
(f) No increases in the amount of production or "work shall be
required of employees for the purpose of avoiding the benefits to
employees prescribed by this Code in respect of wages and hours of
employment.
All requirements in respect of such increases shall be reported to
the Men's Clothing Code Authority.

III
Three (3) months after the effective date a manufacturer shall not
be permitted to have work done or labor performed on any garment or
part thereof in the home of a worker. All work done for a manufac-
turer on a garment or part thereof shall be done in what is commonly
known as an inside shop or in a contracting shop.

IV
On and after the effective date, the hours of employment for employ-
ees in the Clothing Industry, except repair shop crews, engineers,
electricians, firemen, office and supervisory staff, stock clerks, ship-
ping clerks, truck drivers, porters and watchmen, and except employ-
ees engaged in bona fide managerial or executive capacities shall not
exceed thirty-six (36) hours per week nor eight (8) hours per day.
Employers shall not operate productive machinery in the Clothing
Industry more than one shift of thirty-six (36) hours per week.
It is intended that the foregoing provisions for maximum hours shall
establish the maximum hours of labor per week of every employee,
other than those employees excepted therein, so that under no cir-
cumstances will an employee be employed or be permitted to work for
any one or more employers in the Industry an aggregate in excess of
the prescribed number of hours in any single week.
Repair shop crews, engineers, electricians, firemen, office and super-
visory staff, stock clerks, shipping clerks, truck drivers, porters, and
watchmen shall not work in excess of an average of forty (40) hours
per week during any year beginning with the effective date.
It is intended that employees' wages shall not be reduced by reason
of the reduction of the prescribed number of hours of employment.
Tailoring to the Trade and manufacturers of uniforms shall be
permitted overtime at regular rates during peak seasons, the number
of hours and the number of weeks to be determined by The Men's
Clothing Code Authority.
V
All garments manufactured or distributed shall bear an N.R.A.
label, which shall remain attached to such garments. Such labels








shall bear a registration number specially assigned to each manufac-
turer in the Industry. The privilege of using such labels shall be
granted and such labels shall be issued to any manufacturer from time
to time engaged in the Clothing Industry upon application therefore
to the Code Authority, accompanied by a statement of compliance
with the standards of operation prescribed by this Code. The privi-
lege of using such labels and the issuance thereof may be withdrawn
and cease or may be suspended in respect of any such manufacturer
whose operations, after appropriate hearing by The Men's Clothing
Code Authority and review by the Administrator, shall be found to
be in substantial violation of such standards. Manufacturers shall
be entitled to obtain and use such labels if they comply with the pro-
visions of this Code.
The Men's Clothing Code Authority may establish appropriate
machinery for the issuance of such labels in accordance with the
foregoing provisions.
VI
On and after the effective date, employers in the Clothing Industry
shall not employ any minor under the age of sixteen (16) years.
VII
Safe, healthful, and otherwise satisfactory working conditions shall
be provided for all employees, which conditions shall as a minimum
comply with the highest standards respecting sanitation, cleanliness,
light, and safety specified in the Factory Laws of any State in which
the manufacturer operates.
VIII
With a view of keeping the President informed as to the observance
or nonobservance of this code of fair competition, and as to whether
the Clothing Industry is taking appropriate steps to effectuate the
declared policy of the National Industrial Recovery Act, each person
engaged in the Clothing Industry will furnish every four weeks duly
certified reports showing in substance:
(a) Pay-roll data, showing by sex and occupation, number of people
employed, number of hours worked, and the rates of wages paid.
(b) Production data showing the number and type of garments cut
and made up, in such form as may hereafter be provided by the Men's
Clothing Code Authority.
The Men's Clothing Code Authority as hereinafter provided is
constituted the agency to collect and receive such reports.
IX
Where the costs of executing contracts already entered into in the
Clothing Industry are increased as a result of the enactment of the
National Industrial Recovery Act and by the provisions of this Code,
it is equitable and promotive of the purposes of the Act that appro-
priate adjustments of such contracts to reflect such increased costs be
arrived at by arbitral proceedings or otherwise and the Men's Clothing
Code Authority, as hereinafter provided, is designated to assist in
effecting such adjustments.









X
On and after the effective date, it shall be unfair competition for
any manufacturer in the Clothing Industry, either directly or in-
directly, to sell its manufactured product at a price below its cost as
determined without any subterfuge in accordance with sound ac-
counting practice. Cost shall include the cost of piece goods consumed,
trimmings, cutting, and making; and a percentage on the selling
price to cover all overhead.
There shall be excepted, however, from the provisions of this
Section, seasonal clearances of merchandise, and the following dates
are fixed for such seasonal sales:
Wool Suits, Spring Season -------------------- On and after May 15th.
Wool Suits, Fall Season_ -------------------- On and after November 15th.
Summer Clothing.---------------------------On and after June 15th.
Overcoats ----------------------------------- On and after December 15th.
Dropped lines or surplus stocks, sometimes designated as
"closeouts", or inventories which must be converted into cash to
meet immediate needs, may be sold on dates prior to those mentioned
in the preceding clause, at such prices as are necessary to move the
merchandise into buyers' hands. However, all such stocks must
first be reported to the Men's Clothing Code Authority.

XI
On and after the effective date, no contractor shall be permitted
to contract for the manufacture of any garment or part thereof at
a price below its cost as determined without any subterfuge in accord-
ance with sound accounting practice, the cost to include a percentage
on the contract price to cover general overhead.

XII
The following rules of fair trade practices are hereby established
for the clothing industry:
(a) The sale of garments on consignment is prohibited as an unfair
method of competition. The term "consignment" as herein used
shall include the delivery by a manufacturer to any distributor, as
agent, purchaser, or otherwise, under any agreement or understanding,
expressed or implied, pursuant to which the seller retains any lien
upon or title to or interest in the goods delivered, or pursuant to
which the distributor may at his option return any of the goods or
claim any credits with respect thereto. This prohibition shall not
apply to contracts entered into prior to July 14, 1933, the term of
which expires within one year from the date of the enactment of the
National Industrial Recovery Act.
(b) A manufacturer or a contractor shall not make garments from
fabrics, trimmings, and/or other materials owned or supplied by a
retail distributor or the agent, representative, or corporate subsidiary
or affiliate of such retail distributor; nor shall he manufacture gar-
ments from fabrics, trimmings, and/or other materials, the purchase
of which is made upon the credit of or the payment for which is
guaranteed by such retail distributor or the agent, representative, or
corporate subsidiary or affiliate of such retail distributor. This sec-








tion shall not prohibit the operations of retail distributors owning
and operating their own plants, shops, or factories who distribute
products manufactured therein directly to consumers.
XIII
A board known as The Men's Clothing Code Authority shall be
established, and for the purpose of effecting membership therein
representative of the entire industry, such Board shall be constituted
as follows:
Ten (10) members representative of. members of The Clothing
Manufacturers Association of the United States of America, and
Five (5) members representative of employers in the Clothing
Industry who are not members of The Clothing Manufacturers
Association of the United States of America, shall be appointed by
this Association.
Two (2) members representative of other employers may be chosen
by the foregoing" members.
Five (5) members representative of labor shall be appointed by the
Administrator on nomination by the Labor Advisory Boaxd.
One (1) member may be appointed by the Administrator.
Subject to the approval of the Administrator, The Men's Clothing
Code Authority shall have responsibility for the administration and
the enforcement of the provisions of this Code, the standards of opera-
tion set forth therein, and all appropriate rules and regulations made
pursuant thereto.
In connection with such responsibility The Men's Clothing Code
Authority shall have the following authorities and powers:
(a) Authority and power to examine all books of accounts and
records of employers in the Clothing Industry so far as practicable
for the purpose of ascertaining their respective observance or non-
observance of the provisions of this Code and the standards of
operation set forth therein.
(b) Authority and power to cooperate, so far as possible, with the
Administrator in making investigations as to the functioning and
observance of the provisions of this Code and the standards of
operation set forth therein, at its own. instance or on complaint by
any person affected, and to report its findings to the Administrator.
(c) Authority and power to investigate and inform the Adminis-
trator, on behalf of the Clothing Industry, as to importation of com-
petitive articles into the United States of America in substantial
quantities or increasing ratio to domestic production, on such terms
and under such conditions as to render ineffective or seriously to
endanger the maintenance of this Code, and to make complaint, on
behalf of the Clothing Industry, under the provisions of the National
Industrial Recovery Act with respect thereto.
(d) Authority and power to consider and to make recommendations
to the Administrator and to the President of the United States in
respect, of the following matters:
(1) Reconunendations as to the requirement by the Administrator
of such other and further reports from persons engaged in the Clothing
Industry of statistical information and the keeping of uniform
accounts as may be required to secure the proper observance of-the
Code and promote the proper balancing of production, distribution








and consumption, and the stabilization of the industry and
employment.
(2) Recommendations for the setting up of a Service Bureau for
engineering, accounting, credit, or any other purposes that may
aid in the conditions of this emergency and the requirements of this
Code.
(3) Recommendations for the making of rules by the Adminis-
trator as to practices by persons engaged in the Clothing Industry as
to methods and conditions of trading, the naming and reporting of
prices which may be appropriate to avoid discrimination, to promote
the stabilization of the Industry, to prevent and eliminate unfair
and destructive prices and practices.
(4) Recommendations for regulating the disposal of distress mer-
chandise in a way that will secure the protection of the owners
thereof and at the same time promote sound and stable conditions
in the Industry.
(5) Recommendations as to the making available to the suppliers
of credit to those engaged in the Industry, all information regarding
terms of and actual functioning of any or all of the provisions of the
Code, the conditions of the Industry and regarding the operations of
any and all persons engaged in the Industry and covered by this
Code, to the end that during the period of the emergency, available
credit may be adapted to the needs of the Clothing Industry, con-
sidered as a whole, and to the needs of the small as well as of the large
units.
(6) Recommendations for dealing with any inequalities that may
otherwise arise that may endanger the stability of the Industry and/or
production and employment.
Such recommendations, when approved by the President of the
United States, shall have the same force and effect as any other pro-
vision of this Code.
(e) Authority and power to appoint such officers, agents, and other
employees as may reasonably be required for the effective discharge
of its functions.
Except for the purposes provided in Section VIII of this Code
and except so far as may be necessary or appropriate for the
enforcement of the provisions of this Code and the standards of
operation set forth therein, the data in respect of employers in the
Clothing Industry reported to or secured by The Men's Clothing
Code Authority shall be treated as confidential and shall not be pub-
lished or otherwise disseminated throughout the Industry, except as
individually undisclosed portions of aggregate compilations.
None of the powers or authorities vested by this Code in The
Men's Clothing Code Authority shall be utilized or availed of for any
purpose other than the supervision and enforcement of the provisions
of this Code or the standards of operation set forth therein, and for
purposes of advice and information and recommendation substan-
tially as provided for in this Code.
None of the powers or authorities vested by this Code in The
Men's Clothing Code Authority in respect of the operations of
employers in the Clothing Industry shall be made effective in
such manner as to preclude an appropriate review thereof by the
Administrator.
81020-33--2








The expense of maintaining The Men's Clothing Code Authority
shall be borne by employers in the Clothing Industry in such reason-
able proportions and amounts and in such manner as may properly
be allocated'by the Administrator, upon the recommendation of The
Men's Clothing Code Authority.
XIV
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-organiza-
tion or in other concerted activities for the purpose of collective bar-
gaining or other mutual aid or protection; no employee and no one
seeking employment shall be required as a condition of employment
to join any company union or to refrain from joining, organizing, or
assisting a labor organization of his own choosing; and employers
shall comply with the maximum hours of labor, minimum rates of
pay, and other conditions of employment, approved or prescribed by
the President.
XV
This Code and all the provisions thereof are expressly made subject
to the right of the President, in accordance with the provision of
Clause 10 (b) of the National Industrial Recovery Act, from time to
time to cancel or modify any order, approval, license, rule, or regula-
tion, issued under Title I of said Act, and specifically to the right, of
the President to cancel or modify his approval of this Code or any
conditions imposed by him upon his approval thereof.
XVI
The Men's Clothing Code Authority shall designate the National
Association of Uniform Manufacturers to aid the Administrator in
the administration of this Code in respect of the manufacture and
distribution of uniform apparel and shall make recommendations to
the Administrator in respect of the trade practices desirable for this
branch in the industry.
XVII
Such of the provisions of this Code as are not required to be included
therein by the National Industrial Recovery Act, may with the
approval of the President., be modified or eliminated as changes in
circumstances or experience may indicate.












REPORT ON THE CODE OF FAIR COMPETITION FOR THE
MEN'S CLOTHING INDUSTRY

The Code for the Men's Clothing Industry, approval of which is
recommended herewith, will apply to an industry composed of more
than two thousand (2,000) manufacturing units, employing one
hundred and fifty thousand (150,000) workers. By reason of a
decreased production within recent years, and a high degree of sea-
sonality of operations, the industry has been faced by a serious
unemployment problem. During the last decade, the yearly value
of the products of the industry was greatest in 1923, when its output
was valued at more than a billion dollars ($1,000,000,000). By the
year 1931, the value of the output had decreased almost fifty percent
(50%).
THE Two ASSOCIATIONS AND THE Two CODES
For this industry two codes were submitted. One was presented
by the Clothing Manufacturers Association of the United States of
America, and one by the Industrial Recovery Association of Clothing
Manufacturers. On July 19, 1933, the codes were published as
submitted to the Administrator. Public hearings were held on
July 26 and 27. Numerous conferences then took place between the
interested parties and the Administrator and on August 17, 1933, a
code drastically revised by the Clothing Manufacturers Association
was resubmitted to the Administrator and published. This code is
now recommended for approval. The delay resulted from the fact
that there were material differences between the two codes in respect
of the protection above the minimum which was to be afforded to
semiskilled and skilled workers and in respect, of the administrative
machinery to carry out the provisions of the code.
A fundamental difference in the points of view of the two Associa-
tions appeared in respect. of Section VII (a). The code submitted
by the Clothing Manufacturers Association (lid no more than quote
the mandatory provisions of the National Industrial Recovery Act.
On the other hand, the Industrial Recovery Association proposed the
addition to Section VII (a) of the following language: "Employees
not. members of a labor union shall be free from interference, restraint.,
or coercion by any labor union, its members or agents. Employers
and employees may bargain individually or collectively as may be
mutually satisfactory to them." The fact that this Code sought in
effect to interpret and possibly amend an Act of Congress discloses
the principal reason why two codes were presented by the two
associations in the Men's Clothing Industry. One association-the
Clothing Manufacturers Association-is composed largely of union
manufacturers. The Industrial Recovery Association is composed
of nonunion manufacturers. Immediately after the passage of the
National Industrial Recovery Act there had been negotiations between
the two associations looking to agreement on a single code but the
(9)








negotiations had failed and in the hearings the associations were
arrayed against each other.
There is no difference between the kinds of clothing made by the
manufacturers in the two associations. From testimony at the
hearings it would appear that the Clothing Manufacturers Associa-
tion represents between sixty-five percent (65%) and seventy-five
perc'.mnt (75%) of the industry. The testimony, however, failed to
disclose any valid ground on which it might be concluded that. the
minority association represented a subdivision of an industry within
the meaning of the National Industrial Recovery Act (Section 3 (a) ).
Certain possible grounds were suggested but on analysis, all of them
disappeared. There is no subdivision on a geographical basis. To
be sure, the Clothing Manufacturers Association has its main strength
in the four great markets of Chicago, New York, Rochester, and
Philadelphia; but its members are in many other markers as well.
The Industrial Recovery Association has its main strength outside
of the markets mentioned but among its members are to be found
manufacturers in Chicago, New York, Rochester, and Philadelphia.
Nor did.a distinction between two systems of production stand
analysis. In the great markets, the so-called contractor system is an
important method of production. The manufacturer, that is to say,
does not have a factory of his own but cuts the garments and sends
them out to be made up by contractors for whose labor standards he
accepts responsibility. But in the great markets there are many
manufacturers who have inside shops. On the other hand, while a
large majority of the members of the Industrial Recovery Association
operate their own factories and do not send out cut garments, the
membership of the Association includes manufacturers who do use
contractors.
No industrial subdivision could be recognized because of a dis-
tinction between expensive and cheap clothing. Price ranges for the
members of one association were practically the same as price ranges
for members of the other association; and if it be true that the mem bers
of one association are more prominent factors in the production of
garments within a certain price range, this is no reason for the divi-
sion of the industry into two associations and for two codes.
The real cleavage-which appeared clearly in the hearings-
resulted from the fact that the Amalgamated Clothing Workers of
America have collective agreements with the bulk of the employers
in the Clothing Manufacturers Association, while the bulk of the
employers in the Industrial Recovery Association are nonunion. It
seems clear, however, that because a union has been recognized by one
group of employers and has not been recognized by another group
of employers is no valid reason for dividing, an industry into two
parts. There must be one code for the industry and one agency to
administer this code. The administrative agency must be absolutely
neutral in respect of the cleavage referred to and must, show a proper
regard for the fact that administration in the large centers-particu-
larly in respect of the manufacturer-contractor system-presents
problems different from the problems of administration in other
sections of the country where manufacturing is direct and where labor
may be less skilled. Neither of the two groups-between which, as
has been said, save for labor relations, only artificial divergencies of
interest exist-should be in a position to dictate to the other group.








The code presented by the Industrial Recovery Association sug-
gested an administrative and advisory agency which would consist
of five (5) representatives from the Industrial Recovery Association
and five (5) members from the Clothing Manufacturers Association,
in addition to a representative appointed by the National Recovery
Administration. The manifest purpose of this separate representa-
tion was to protect the members of the Industrial Recovery Asso-
ciation in respect of interests which they felt required protection.
That was a legitimate objective. But to reach such an objective
through the method proposed would have meant a division of respon-
sibility with resulting hesitation and inefficiency. For the adminis-
tration of a code there must be an administrative machinery in
respect, of which responsibility is not divided.
When the codes were submitted to the Administrator, administra-
tion by a trade association was contemplated. The device of admin-
istration by a Code Authority had not yet evolved. The Code as
recommended provides for a Code Authority but with proper repre-
sentation for divergent interests in the industry on a basis which will
be discussed later in this report, and which it is believed will quiet
the fears of the Industrial Recovery Association.
After the conclusion of the hearings, there were a number of con-
ferences between representatives of the two associations. It appeared,
however, that no matter how extended the conferences became, it
would not be possible for the two associations to agree on a single code.
The Industrial Recovery Association withdrew its proposed addition
to Section VII (a), but on wages above the minimum and on adminis-
trative machinery its representatives were adamant. Indeed, they
were compelled to be adamant because they did not have sufficient
authority from the membership of their Association freely to negotiate.
Under its bylaws, moreover, the Industrial Recovery Association
refused admission to manufacturers who had collective agreements
with the Amalgamated Clothing Workers of America and this it was
argued was an "inequitable restriction on admission to membership"
within the meaning of the National Industrial Recovery Act (Sec-
tion 3 (a)).
In view of these circumstances, the wise course appeared to be for
the Clothing Manufacturers Association to revise its code on the basis
of the considerations adduced at the hearings and at subsequent con-
ferences with representatives of the Industrial Recovery Association.
Such a revised code would be resubmitted to the Administrator.
Discussions with labor representatives on wages and hours would take
place and the Industrial Recovery Association's members would be
invited to give their approval to the new code as submitted and
recommended. This procedure was followed. The revisions and
drafting were greatly aided by representatives of important neutral
factors in the industry, that is, factors which did not belong to either
of the proposing associations. The revised code was resubmitted and
published on August 16, 1933, and is herewith recommended for execu-
tive approval.
THE CODE AS REVISED AND RESUBMITTED
The Code as resubmitted may be summarized as follows:
Section I defines the term "Clothing Industry."








Section II provides a minimum wage of forty cents (400) per hour
in the northern section of the industry and thirty-seven cents (371)
per hour in the southern section.
Subsections a, b, c, d, e, and f, safeguard previously existing
differentials for workers above the minimum, prevent, increases in the
amount of production and work to avoid benefits to employees in
respect of the Code's provisions on hours and wages, and authorize the
Code Authority to appoint a committee to supervise the execution of
the wage provisions.
Section III abolishes home work.
Section IV establishes thirty-six (36) as the maximum number of
hours per week for manufacturing employees and forty (40) hours per
week for nonmanufacturing employees and makes special provisions
for overtime in the subdivision of the industry known as "Tailoring
to the Trade" and uniform manufacturers.
Section V provides for the use of an N.R.A. label to be attached to
all garments manufactured under the Code.
Section VI forbids the employment of any minor under the age of
sixteen (16) years.
Section VII provides that working conditions for employees shall as
a minimum comply with the highest standards of sanitation, etc.,
specified in the factory laws of the appropriate state.
Section VIII provides for the collection and publication by the
Code Authority of certain information.
Section IX authorizes the Code Authority to aid in making equitable
adjustments in respect of the cost of executing contracts entered into
before the adoption of the Code.
Sections X and XI declare it to be unfair competition to sell below
cost.
Section XII forbids the sale of garments "on consignment" and
bars the practice of "cut, make, and trim" which all factors in the
industry agree in pronouncing pernicious.
Section XIII provides for the constitution of a Men's Clothing
Code Authority and confers on it certain powers.
Section XIV sets forth the mandatory provisions of Section VII (a).
Section XV reserves to the President the right to amend, cancel, or
modify any provision of the Code.
Section XVI makes special provision for administrative autonomy
under The Men's Clothing Code Authority for uniform manufacturers.
Section XVII provides that provisions of the Code not required to
be included by the National Industrial Recovery Act "may, with the
approval of the President, be modified or eliminated as changes in the
circumstances or experience may dictate."
Several provisions of this Code warrant further comment:
DEFINITIONS
As is probably inevitable in respect of every large industry, there
were differences of opinion as to what the Code for the industry should
properly cover. Raincoats, when worn by men, for example, are
undoubtedly men's clothing. But is their manufacture so much like
the manufacture of outer garments made from wool that the two
articles should be classed under the same code? Similar questions
arose in respect of leather coats and men's wash suits. Both of these








subindustries had joined with the International Association of Gar-
ment Manufacturers in offering to come under a code for the cotton
garment industry. Leather coats are in many factories closely allied
to the manufacture of work clothing. Summer clothing for men is
made only in small part by manufacturers of wool clothing. The
bulk of the production of men's wash suits is by firms who are pri-
marily cotton garment manufacturers. The class of labor and
methods of production are entirely different from the class of labor
and methods of production of woolen men's clothing. As a result
of the evidence presented at the hearings and of the arguments pro
and con in the subsequent conferences, the definition of the Mlen's
Clothing Industry was made that which appears in Section 1 of the
Code as recommended.
TAILORS TO THE TRADE
Other questions arose which related to the consideration, if any,
which should be given to different types of manufacture of men's
clothing. The most important of these concerned Tailors to the
Trade who do three or four times the volume of business in March
or April than they can do in January or February and who are sub-
ject to similar fluctuations in the autumn season. It was argued
stenographicc record, pige 77-FF) that workers in the tailoring in-
dustry would be discriminated against if they were not allowed to
work longer hours during the peak seasons. The tailoring houses
asked for two shifts in order to make prompt deliveries and for the
privilege of varying the working hours per day while remaining within
a maximum number of hours per week. It was estimated that there
were thirty-five (35) Tailors to the Trade establishments employing
twenty thousand (20,000) workers. This request was supported by
both the Clothing Manufacturers Association and the Industrial
Recovery Association. (Stenographic record, page 212-FF.) This
matter was settled by authorizing the Code Authority to make the
exceptions which seem to it equitable and desirable. (Code Section
IV.) In addition, the Code Authority will be able to accord special
treatment for uniform manufacturers to enable them to meet rush
orders or the requirements of public contracts.

CONSTITUTION OF CODE AUTHORITY
As has been said above, a code resubmitted by a trade association
composed largely of union manufacturers but intended to apply to a
whole industry must give representation on its Code Authority to
the nonunion sections of the industry. This problem has, it is
believed, been successfully resolved by providing for a Code Authority
constituted as follows: The Clothing Manufacturers Association
appoints ten (10) members. Five (5) members of the Code Authority
are to bo selected by the Clothing Manufacturers Association to
represent manufacturers who are not members of that Association,
i.e., the manufacturers who were members of the Industrial Recovery
Association. These five (5) representatives will, it is believed, be
more than the Industrial Recovery Association is entitled to under
the basis of the number of workers its members employ or the total
annual value of production. Designation of these representatives by








the Clothing Manufacturers Association will, it is anticipated, put
the responsibility on that Association to give the fairest kind of repre-
sentation to the part of the industry which is not within its member-
ship. To make the employer members of a Code Authority even
more representative, it is provided that the fifteen (15) members thus
chosen may add two (2) other members to the employer's group. In
this way independent factors in the industry can be given representa-
tion. Provision is made for the appointment of five (5) labor repre-
sentatives by the Administrator on nomination of the Labor Advisory
Board.
HOURS AND WAGES
A work week of thirty-six (36) hours for manufacturing employees is
provided by the Code as recommended. It is estimated that this
provision will result in the reemployment of almost twenty thousand
(20,000) employees who are now attached to the industry but for
whom employment has not been provided within recent years. In
addition, it is anticipated that this hours provision will result in a
significant diminution in the number of employees who are short-
time workers. A statistical discussion of this matter is contained in
the attached report from the Division of Research and Planning.
The Code as submitted requires the payment of at least forty cents
(400) per hour in the northern section of the industry and thirty-
seven cents (370) per hour in the South. Other minimum earnings
provided are thirty-seven cents (370) per hour for workers on single
knee pants, seventy-five cents (750) an hour for off-pressers and one
dollar ($1.00) per hour for cutters. The Research and Planning Divi-
sion has estimated that the establishment of a forty-cent (40i) mini-
mum hourly rate in conjunction with a thirty-six (36) hour week
will result in a twenty-eight percent (28%) increase in the total pay-
roll of the industry which will in the future total almost one hundred
million dollars ($100,000,000) a year.
CONCLUDING REMARK
Sweatshops have never been the problem in the men's clothing
industry that they have been in the manufacture of women's clothing.
It clearly appeared at the hearings, nevertheless, that in comparison
with the prevailing standards throughout the greater part of the
industry there are a number of manufacturing units which must be
classed as substandard. The provisions in the Code for maximum
hours and minimum wages-with protection for skilled workers above
the minimum-will, it is believed, eliminate this substandard competi-
tion, enable the industry to level off the seasonal peaks of operation,
and provide greater employment for workers on men's clothing.
FINDINGS
The Deputy Administrator finds that:
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7, and subsection (b) of Section 10
thereof; and that







15

(b) The Clothing Manufacturers Association of the United States
of America imposes no inequitable restrictions on admission to mem-
bership therein and is truly representative of the Men's Clothing In-
dustry; and that
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and \%ill not operate
to discriminate against them, and will tend to effectuate the policy
of Title I of the National Industrial Recovery Act.
LINDSAY ROGERS, Deputy Administrator.

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