Citation
Code of fair competition for the knitted outerwear industry

Material Information

Title:
Code of fair competition for the knitted outerwear industry as approved on December 18, 1933 by President Roosevelt
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
Supt. of Documents
Publication Date:
Language:
English
Physical Description:
p. 199-209 : ; 23 cm.

Subjects

Subjects / Keywords:
Clothing and dress -- Law and legislation -- United States ( lcsh )
Industries -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
"Approved code No.164 ; Registry No. 243-1-02".

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004853436 ( ALEPH )
63654322 ( OCLC )

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CODE OF FAIR COMPETITION

.R.. *" wo THE


TTED OUTERWEAR


rr INDUSTRY


AS APPROVED ON DECEMBER 18, 1933
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PRESIDENT ROOSEVELT


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1. Executive Order

2. Letter of Transmittal

3. Code


IMwTED STATS
aOVERNNMNT PRINTING OFFICE
WASHINGTON: 198I


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Buffalo, N.Y.: CbamberitA Commerc Build~ g.
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.: 2218 First National Bank Building.
Houston, Tex.: Chamber'of olio~bt ce Building.
Indianapolis, Ind.: Cihaber o Csummerce Building.
Jaeksoptille, Fla.: Ohraber i' Comercee Building.
Kansas City, Mo.: 1028 :litl~otoe Avenue.
Los Angeles, Calif.: 1163 I: nthitradway.
Louisville, Ky.:'408 Federal Baullang.
Memphis, Tenn.:'229 Federal Building.
Minneapolis, ,MJIL.: 213 Federal Be;dlng.
New Orleans, j t. Room 225-A,- Cutomhouse.
NewmYork, N.Y.: "734 Customhouse.
Norfolk,, Va.:; 406 $ast Plume Street.
Philhddilhiav Pa. :083 Commercial Trust Building,
Pittsburgh, Pa,: chamber of Commerce Building.
Portland, Oreg., 215 New Post Office Building.
St. Louis, Mq.:, i06 Olive Street.
San FFaridlsqq4Calif.: 310 Customhouse.
fSe4t4e Wash.: 809 Federal Building.
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Approved Code No. 164

CODE OF FAIR COMPETITION
FOR THE

,:..:.TKNITTED OUTERWEAR INDUSTRY

;,.-,;;. -As Approved on December 18, 1933
. ..;;,. ;?!:; 0 .. .. .. .B
PRESIDENT ROOSEVELT




": Executive Order

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
4;- f-iFair Competition for the Knitted Outerwear Industry, and hear-
iG ;:i: havingg beeii 'held thereon and the Administrator having ren-
: ied. ,.ij his report containing an analysis of the said code of fair
S:':: petition together with his recommendations and findings with
epe .Ji ct thereto, aid the Administrator having found:that the said
ii'*e, 3 qf fair competition complies in all respects with the pertinent
iiovisions of title I of said act and that the requirements of clauses
(1:l) and (2) of subsection (a) of section 3 of the said act have been
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
I the United States, pursuant to the authority vested in me by title I
S of :the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said code
Sf fair competition be and it is hereby approved, subject to the
i :following condition:
That all manufacturers of knitted outerwear for infants and
S.childre, sized from infancy to and including age fifteen, be granted
stay from the 'provisions of this code, until determination by the
;, administrator, after such hearing as he may deem necessary, as to
'" whether or.not they are to be included in this code.
FRANKLIN D. ROOSEVELT.
"Aproval recommended:
jIVH S. JOHNSON,
Administrator.
STn WHrrI HousE,
December 18, 1983.
T045--38 (1991


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DexEMBE 5, 1933. .1
The PRESIDENT,
The White House.
SmR: I have the honor to submit and recommend for yur approval <-
the Code of Fair Competition for the Knitted Outerwear Industry.
This Code was proposed by the National Knitted Outerwear Asso--"
ciation, No. 1 Madison Ave., New York City.
The National Knitted Outerwear Association was founded in 1918 ':
and represents 55%-of the total number of plants in the United
States and 72% of the total volume. This association is organized
on a regional basis, with five separate local associations serving
regions in all parts of the United States. The association impose
no inequitable restrictions on membership.
The hearing was conducted in the Willard Room of the Willard '
Hotel in Washington on October 1S and 17, 1933. Every person who.
filed a request for an appearance was fully heard in accordance with
statutory and regulatory requirements.

EVIDENCE srMfED
The Industry comprises approximately 750 plants with an in-
vested capital of approximately $50,000,000. The annual sales for
the. year 1931 were approximately $112,000,000 as compared to the
sales in 1929 of $147,000,000.
The Industry, since August 1, 1933, has been operating under the
same wage and hour provisions as contained in the Code and pro-
vided under a substitute agreement to the President's Reemploymeat :s
Agreement. The application of these wages and hours increased
the average weekly wage from $13.59 in June and July 1933 to
$15.93 in August 1933, an increase of 17%.

PROVISIONS OF THE a ODE
The Code provides for a minimum wage of 35# per hour in the
Northern section of the Industry and 321/2f per hour in the Southern
section.
Productive machinery may be operated for two 40-hour shifts per 3
week with the provision that any employer may elect to operate one
shift per week and have the privilege of operating 48 hours per wee it
for two periods of 4 consecutive weeks each per year.
Employees may work not more than 40 hours per week nor more -:i
than 8 hours per day, except that when an employer elects to operate "
one shift only, the employees may work not more than 48 hours per ;..
week nor more than 9 hours per day.
Office employees may work an average of 40 hours per week over a
period of any 12 weeks, but may not work more than 48 hours in any .
one week. .A
(200) Q








r;': tJerime aDnove lu ours per weeir is to be paid tor at the rate it
j ntimeand.one third. Provision is made for the maintenance of differ-
tials between wages above the minimum. Provisions are made for
itg. anteeing sufficient pay to contractors to cover their wages plus
i;i:easonable allowance for the contractor's overhead.

HOME WORK

':CHome work is a major problem in this Industry, due to the wide
iiuiet y of woik -done. and- the .wide geographical distribution of
i.workers. Workers are located in both the Metropolitan centers
...id in country districts in all sections of the United States.
:... I.t is necessary to consider also the conflicting aspects of the
r ioblem, as represented by the possibility of low wages, long hours
.ialjd labor, and. unsanitary working conditions on the one hand, and
iippled, needy, widowed mothers and difficulty of obtaining
Iiined workers on the other hand.
p3;: m the evidence submitted and from independent investigations
.4iW::as evident that more time should be allowed for study of the
li lem. Accordingly a home-work committee has been provided
o ir in the Code to set equitable piece rates and to study the prac-
kticability of elimination of home work, insofar as possible.
i:: ..... INFANT'S AND,CHILDREN'S WEAR

-i-': eIJnfant's and Children's Wear Industry have submitted a Code
rit Cbompetition in which-they seek to include Infant's and Chil-
I E3t~ s knitted outerwear. As the Knitted Outerwear Code also
ib;ludes Infant's and Children's Knitted Outerwear, a stay is recom-
iii!::: ided for all manufacturers of Infant's and Children's Knitted
t"'ifirwear until a final determination can be made.


FINDINGS
I .fnd that-
r:'= -' ( ) This Code complies in all respects with the pertinent pro-
:;iiii: .Si0ns of Title I of the National Industrial Recovery Act, including
withofit limitation subsection (a) of Section 7 and subsection (b) of
:iA Section 10 thereof.
:.... (b. : The, National Knitted Outerwear Association is truly repre-
':'- titative of the Knitted Outerwear Industry and the Bylaws of this
I asciation provide no inequitable restrictions to membership.
'::() cThe Code.is not designed to promote monopolies or to elimi-
: at Aor oppress small enterprises and will not operate to discriminate
::::: ilst them, and will tend to effectuate the policy of Title I of the
I:::* Ft linail Industrial Recovery Act.
: rI rmcoml end that the Code be approved.
spi::ectfully,
: HUGH S. JOHNSON,
Administrator.
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CODE OF FAIR COMPETITION
FOR THE
KNIrED OUTERWEAR NDSTRY


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AaTwrLi I-PURPOSE


To effectuate the policies of title I of the National Inidust '
Recovery Act, the following provisions are submitted. as a OIdde&
Fair Competition for the Knitted Outerwear Industry and .i ::u .i
approval by the President shall be the standard of fair competitict :
for such Industry and shall be finding upon every member th .4e

ARTICI;E -D-ENTrrroNs

(a) The term "Knitted Outerwear Industrv" as used herein is
defined to mean the manufacture of knitted outerwear apparel for.
men, women, and children, including infants, and/or the.manuac-
ture of knitted fabrics for outerwear purposes, but shall not inlt4id
the products of the hosiery and/or underwear industries and/or "t i
manufacture of knitted woolen goods in self-contained woolen mi .::
of the wool textile industry as defined in the respective codes, .. ;'
these industries and shall not include the manufacture of garment .ii
made of purchased knitted fabrics.
(b) The term "employee" as used herein includes any person ;
engaged in any phase of the Knitted Outerwear Industry in any
capacity in the nature of employee irrespective of the method of
payment of compensation.
(c) The term "employer" as used herein includes anyone by i
whom any such employee is compensated or employed.
(d) The term "productive machinery" as used herein is defined
to mean all knitting, winding, pressing- (not including the pressing
of dresses, suits, and coats) and fabric finishing machinery used ini
the Knitted Outerwear Industry.
(e) The term "contractor" as used herein shall include anyone 6
who manufactures any of the products of the industry as iabo yp
defined, in whole or in part, for others who provide the necessary
raw materials. "
(f) The term "Act" as used herein refers to the National Indris-
trial Recovery Act.
(g) The term "Code Authority as used herein shall refer to the -.i
Knitted Outerwear Industry Code Authority set up in Article IX 'i
of this Code.
(h) The term "Administrator" means the Administrator duly
appointed under the National Industrial Recovery Act.
(202)


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.'E:i.'i rctorsa or submanufacturers referred to in Article VII hereof,
adf Efins: in any other related groups as may from time to time be
.icljuded in the Industry by the Administrator upon application of
.theCode- Authority.
:l'::: ~The terni "cleaner" as used herein means and includes any-
ne who does janitor service or one who cleans floors, buildings, or
a ichinery and does nothing else but clean.
-ii'.v(k)* The term "learner,'- as used herein means and includes any-
*t who -has worked less than eight (8) weeks in the industry. -
ARTICLE III-HOURs
cIl &(al) No -employee in the Knitted Outerwear Industry, except re-
j*MW-shop crews, engineers, electricians, firemen, supervisors, ship-
; pw, watching -and outside crews, cleaners, and office employees re-
i e %'smgg less than $35.00 per week shall be permitted to work in excess
of :dfdrty (40) hours per week, and the hours in each week during
IElwhi3h any employee shall have worked in other plants and/or in other
in.te tries shall be included in such forty (40) hours.
.0 0:(b) Office employees receiving less than thirty-five dollars ($35)
l:l""r week shall not be permitted to work more than four hundred and
.1K (480) hours in any twelve-week period, an average of forty
~.)hours per week, and not more than forty-eight (48) hours in
n one week.
-a On-ior-before February. 1, 1934, the Code Authority shall pre-
-i.d suibmit.to the Administrator suggestions for a schedule of
:R inumm hours to apply to those employees excepted under section
a1i : (of this Article.
:i'(d). .Employers in the Knitted Outerwear Industry shall not oper-
:1 productive machinery in the Knitted Outerwear Industry for
mr..than two (2) shifts of forty (40)' hours each in any week, and
to::::.-.:: other machinery used in the Knitted Outerwear Industry shall
; be operated for more than one (1) shift of forty (40) hours during
ai;.iy week; except that any employer may elect by notifying the
i.:d.riA::tuth6rity to operate all machinery for one (1) shift only, and
iineh. employer may operate all machinery on a schedule of hours
i..b :i.ioorfor his employees of not more than forty (40) hours per
!;;i::week except that for two (2) periods of four (4) consecutive weeks
Iieilari ,- per year, such employer may operate not more than forty-
ii':eight (48). hours in any one week.
;: (e) o employee shall work more than eight (8) hours in any
p!: e day when .n a forty (40) hour weekly shift nor more than nine
:O ":. i any one day when on a forty-eight (48) hour weekly
41im:i. 5 ....
i:;. : .over a ee above forty (40) hours per week shall be paid
..t:::. .. r:" a. ate of time and one third.
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h( t ihinm nu wages that shall be paid by employers in the
t:::, ed Otrwear Industry to any of their employees, except
S arne, shall e ..at the rate of thirty-five cents (350) per hour
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Texas, Louisiana, and Oklahoma shall constitute the Southern see-:..
tion of the Industry. Other states and the District of Columbia i..
shall constitute the Northern section. .
(c) The rate of pay for learners shall not be less than seventy-.
five (75%) percent of the minimum rate and no employer shall in-
clude within the category of learners more than one such employee : .
for every twenty (20) employees or fraction thereof.
(d) The weekly compensation for. employment now in excess of ',
the minimum wages herein provided shall not be reduced, notwith-
standing that the hours of work in any such employment may be .
hereby reduced, and piece rates shall be so adjusted that earning
at the shorter hours provided in this Code shall be at.least equivY .
alent to those obtaining under the longer hours .heretofore: pre
ailing.
(e) The provisions for a minimum wage in this Code shall estab- ;
lish a guaranteed minimum rate of pay per hour of employment,
regardless of whether the employees' compensation is based on a
time rate or piecework rate or any other basis.
(f) Employers shall not reclassify employees or duties of occu-
pations performed by employees so as to defeat the purposes of the
Act and of this Code.
(g) A person whose earning capacity is limited because of age
or physical or mental handicap may be employed on. light work at .,
rate of pay not less than 75% of the minimum rate, provided that not
more than one (1) employee for every twenty (20) employees or. a
fraction thereof may be placed within this classification, and the
names and addresses of all such handicapped employees shall be
reported to the Code Authority.

ARTICLE. V-CHILD LABOR
No person under sixteen (16) years of age shall.be. employed in the."
Knitted Outerwear Industry, nor anyone under eighteen (18) years
of age at operations or occupations hazardous in nature or detri- M
mental to health.
ARTICLE VI-HOME WoRK
(a) No Knitted Outerwear products shall be manufactured at
home for sale or other commercial purpose, except that' for the'
period of one year after the effective date of this Code hand knit-
ting (which shall include hand crocheting, hand embroidering, iant
hand sewing together of machine-made parts of garments), will be
permitted when performed in accordance with regulations- and/or i
piece rates which may be established as herein provided.
(b) Anything contained in Article IV of this Code to the con-
trary notwithstanding, the Administrator may fix, on or before
January 15, 1934, after notice to the Code Authority, and may s

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fl~l~iEg rcai time to time after like notice, minimum piecework
r~ iates for any of the operations described in paragraph (a) of this
r.&ticley
( c) The Administrator shall appoint a Hand-Knitted Division
Committee of seven, three of whom shall be fairly representative
~ ~'tif ,the hand-knit manufacturers, three fairly representative of the
| machine manufacturers and recommended by the Code Authority,
sad ~ ere representing the Administrator. This Committee shall re-
p; rb, : to the Administrator within thirty (30) days after the effec-
: t vet date of this Code or within such further time as may subse-
I gently be- allowed by the Administrator or his Deputy, with re-
Sspect.to proper minimum piecework rates and shall make a study of
i:and report within six months from the effective date of this Code,
'Iupot the practicability of discontinuing home work in the Industry
Sor setting up a system of control for home workers.
; ArTICLE VII-CONTRACTING
A":'I members of the Knitted Outerwear Industry who use con-
tractors or submanufacturers for knitting or fabricating garments, or
Sany part thereof, shall pay such rates to the contractor or submanu-
facturer as will enable the contractor or submanufacturer to pay his
e" ployees at least the wages provided for in this Code, together
with a reasonable allowance for the contractor's overhead. The Code
SAuthority shall formulate additional regulations, with the approval
if t he Administrator, to carry into effect the purpose and intent of
: this provision.
." ARTICLE VIII-GENERAL LABOR PROVISIONS
(a) Employees shall have the right to organize and bargain col-
;: wectively thrugh- representatives of their own choosing, and shall
:? be free from the interference, restraint, or coercion of employers
iof .labor, or their agents, in the designation of such representatives
:or in self-organization or in other concerted activities for the pur-
ipo;! se of collective bargaining or other mutual aid or protection.
(b) No employee and no one seeking employment shall be required
A, 4a condition of employment to join any company union or to refrain
p joining, organizing, or assisting a labor organization of his
:wn choosing.
:::(e.) Employers shall comply with the maximum hours of labor,
wImnanum rates of pay, maximum machine-load of employees, and
dler conditions, of employment approved or prescribed by the
,.W ent.
,:4) Within each- State this Code shall not supersede any laws of
.o-State imposing more stringent requirements on employers regu-
Jig the age of employees, wages, hours of work, or health, fire, or
jweral working conditions than under this Code.
(e) Each employer shall post in conspicuous places on his premises
i copies of this Code, in the form prescribed by the Code Authority.
ARTnILE IX-ADMJNISTRATION
To effectuate further the policies .of the Act, a Knitted Outer-
tr'.Industry Code 'Authority is hereby designated to act as the










uVIrU OO V c 0.C0 u %1VLAJL LL B, %uA 5 & A E ta uJ i nruan J.J.v iiaJ l S.JI 'a PTOW
Administrator in such administration and enforcement *
(b) This Code Authority shall consist of eight (8): rxpeip W:I
tives of the Knitted Outerwear Industry elected by a tf maii
of selection, to be approved by the Administrator, and -nmi dt` t
than three (3) members without vote and without cost- to tTe
dustry, appointed by the Administrator. Such ag enym ay
time to time present to the Administrator recommedattiai
on conditions in this industry as they may develop which hWiI lit!
to effectuate the operation of the provisions -of this Code aid'"'li :'i
policy of the Act. Such recommendations, -when apprbveid-1jrvi
Administrator, shall have the same force: and: effect as any oeti
provisions of this Code. *- .-
(c) Such agency is also set up to cooperate with the Adinia;s-':
trator in making investigations as to the functioning and observamno -.
of any provision of this Code, at its own instance or on. comply :::
of any person affected, and to report same to the Administratoe. ,:
(d) In addition to the information required to be submitted t~ :-
the Code Authority there shall be furnished to Government A .gen i
such statistical information as the Administrator may deem inO -
sary for the purpose stated in section 3 (a) of the Act. : i
e) Members of the Industry who manufacture Infants' ai. ...
Children's wear up to and including sizes for 15-year-old childra :i:i
may elect to form a separate group within the industry and shall
have full rights to autonomy im regard to trade practices. Thi':
group may either approve the trade practices applying 'to other '
members of the Industry or separate and distinct trade practices
may be promulgated and adopted as provided in this Code.
(f) Members of the Industry shall be entitled to participate in ai
share the benefits of the activities of the Code Authority and to par :
ticipate in the selection of the members thereof by assenting to i3id
complying with the requirements of this Code and sustaining their:
reasonable share of the expense of its administration. The reason- :
able share of the expenses of administration shall be determninedibi,
the Code Authority, subject to review by the Administrator, on th :&.
basis of volume of business and/or such other factors as may: bt1b
deemed equitable to be taken into consideration.
(g) The Code Authority will cooperate with the Administrator- i
in the establishment of an Advisory Council for all or any grotip
textile industries, for the purpose of considering and advisin-i wMi
the Administrator on matters concerning two or more of sueh ..a
tries operating under separate Codes of Fair Compeittion, and uii
request and with the approval of the Administrator, appoint to-a
Advisory Council one or more representatives of the Kn
Outerwear Industry.
ARTICLE X-TRADE PRACTICES
To accomplish the purposes contemplated by the Act the fto
ing practices are hereby declared to be unfair methods of com
tion and in violation of this Code.

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(a.. S 6h6r RBo~~ &-iseC Lt-No -member of the Industry shall sell
a ; .jprdi~.idt or ,serviee below cost based upon principles of costing
ir.:latei ..to by the. (ode Authority and approved by the Adminis-
ii tor, xept when necessary to meet competition, to dispose of
w.ii :i esa merchandise or under other circumstances to be defined by
St dCode- Authority.
:' (b)' Coinignmeint.-No member of the industry shall ship goods
Sc::s":i cagnment except under circumstances to be defined by the
OW:: tbj Akithority, .where-peculiar circumstances of the Knitted Outer-
wear Industry require the practice.
!: (c: MFiasbr~ dim.-No member of the Industry shall falsely mark
a~:f"''or brand knitted outerwear products for the purpose or with
Sth effect of misleading or deceiving purchasers with respect to the
6orgin trade marking, quality, yarn content, or construction of such
S products.
( ir) -MXiepresetatios.-No member of the industry shall publish
:aiertising (whether printed, radio, display, or of any other nature)
whie is misleading or inaccurate in any material particular, nor
I hall any member in any way misrepresent any goods (including but
withlat limitation its use, trade mark, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content,
or p paraMtion) or credit terms, values, policies, services, or the
atture or form of the business conducted.
(e7 Terms of Sale.-(1) No member of the Industry shall sell
or offer to sell knitted outerwear products upon terms other than a
maximum discount of three (3) percent to the wholesale trade for
payment. on the 10th day of the month following the designated
shipping date, or equivalent discount for longer periods. (2) No
member of the Industry shall sell or offer to sell knitted outerwear
products to the retail trade upon terms other than a maximum
discount of eight (8) percent for payment on the 10th day of the
month following that of shipment. For the purpose of these pro-.
visions, the 25th calendar day shall be considered the end of the
month.
(f) Retmwns.-No member of the Industry shall accept the re-
.turn of garments that have been worn, or merchandise not worn
but which- has been accepted by a customer, except under circum-
Istin.es to be defined by the Code Authority.
.(g Rebates.-No member of the Industry shall secretly directly
oer or make any payment or allowance of a rebate, refund, com-
.: mission, credit, unearned discount or excess allowance, whether in
the foramof money or otherwise, nor shall a member of the industry
secretly ofer or extend to any customer any special service or priv-
iege not extended to all customers of the same class, for the pur-
poseid influening a sale.
(h) Delivery Charges.-All knitted outerwear products shall be
sold F.O.B. shipping point, except for deliveries within metropolitan
areas local to the shipper, subject to exceptions approved by the Code
V Authority.
AntioLE XI-STANDAIRDS

(.i (a) .All standards already formulated in. cooperation with the
m:lureau of Standards of the United States Department of Commerce


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AJGVT OWU-CLGuJuL uuGuMuLF Vuuu Cuim u7 .'A iiGtA% W*-i; ns
chandise manufactured after the effective date shall be plai y::
visibly marked by a firmly sewed label, "Substandard wher:i:
merchandise comes below the minimum standards. Every mawu'
facturer shall plainly mark with a stamp or a firmly sewed. label :4:4.
size or measurement of his product thereon. .
(b) All garments manufactured or distributed shall -~earo w aai
N.R.A. label, which shall remain attached to such garmen ts. S--ih
label shall be in such form as may be-prescribed by the Code Authe
ity. The Code Authority shall have the exclusive right in thji:i
industry to issue and furnish said labels to the members thereo. l
The privilege of using such label shall be granted and such label
shall be issued to any employer from time to time engaged in. .th:
industry, upon application therefore to the Code Authority accom? '
panied by a statement of compliance with the standards of operation :
prescribed by and the provisions of this Code. The privilege, p. i:l
using such labels and the issuance thereof may be withdrawn &au "".
cease or may be suspended in respect to any such manufacturer whoM. ,
operations, after appropriate hearing by the Code Authority aN :,..:::
review by the Administrator, shall be found to be in substantial.
violation of such standards and provisions. Employers shall be ea-l,
titled to obtain and use such labels if they comply with the pr
visions of this Code. The Code Authority may-establish appropraatie
machinery and regulations for the issuance of such labels, inspe-,-:
tion, examination, and supervision of employers engaged in-.the.
industry, in accordance with the foregoing provisions.
ARTICLE XII-MODIFICATION

(a) This Code and all the provisions thereof are expressly made ti
subject to the right of the President, in accordance with the pro-i'"
visions of subsection (b) of Section 10 of the National Industria
Recovery Act, from time to time to cancel or modify any ord;
approval, license, rule or regulation issued under Title I ofs
Act and specifically, but without limitation, to the right of the Pi
dent to cancel or modify his approval of this Code or any conditifip
imposed by him upon approval thereof.
(b) This Code, except as to provisions required by the Act,
be modified on the basis of experience or changes in circ
such modification to be based upon application to the Admini
and such notice and hearing as he shall specify, and to
effective on approval of the President.

ARTICLE XIII-MONOPOIms .

The provisions of this Code shall not be interpreted or apfle
to promote monopolies or monopolistic practices or to el O
or oppress small enterprises or to discriminate against them.


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S ARTnCLE XIV-EFFECTVE DATE

his Code shall become effective the second Monday after its
ppioval by the President.


SApproved Code No. 164.
Seglstry No. 243-1-02.


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Full Text

PAGE 1

Approved Code No. 164 Registry No. 243-1-02 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE KNITTED OUTERWEAR INDUSTRY AS APPROVED ON DECEMBER 18, 1933 BY PRESIDENT ROOSEVELT 1. Executive Order 2. Letter of Transmittal 3. Code UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washiniton, D.C. --------Price 5 cents v

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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. Buffa lo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Clevelan d, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 2213 First National Bank Building. Hous ton, 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.: 11G3 South Broadv.-ay. Louisville, Ky. : 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, l\Iinn. : 213 Federal Building. New Orleans, La.: Hoom 225-A, Customhouse. New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelpllin, Pa. : 933 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. Portland, Oreg.: 2 15 New Post Office Building. St. Louis, Mo.: 506 Olive Street. San Francisco, Calif. : 310 Customho u s e. S eattle, Wash.: 809 Federal Building. tD)

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Approved Code No. 164 CODE OF FAIR COMPETITION FOR THE KNITTED OUTERWEAR INDUSTRY As Approved on December 18, 1933 BY PRESIDENT ROOSEVELT Executive Order 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 Knitted Outerwear Industry, and hear ings having been held thereon and the Administrator having ren dered 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 competition complies in all respects with the pertinent provisions of title I of said act and that the requirements of clauses (1) and (2) of subsection (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 otherwise, do adopt and approve the report, recommendations, and findings of the Administrator and do order that the said code of fair competition be and it is hereby approved, subject to the following condition : That all manufacturers of knitted outerwear for infants and children, sized from infancy to and including age fifteen, be granted a stay from the provisions of this code, until determination by the Administrator, after such hearing as he may deem necessary, as to whether or not they are to be included in this code. Approval recommended : HuGHS. JoHNSoN, Ad1ninistrator. THE 'V HITE HousE, Dccmnbe1' 18, 1933. FRANKLIN D. ROOSEVELT. 27645-33 (199)

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DECE IBER 5, 1933. The The lV hite House. Sm: I have the honor to submit and recommend for your approval the od e of Fair Competition :for the l(nitte d Outerwear Industry. 'l'hi C o d e was proposed by the National Knitted Outerwear A s sociation, No. 1 :Madis on Ave., New York City. The National Knitted Outerwear A ss ociation was :founded in 1918 and repre sents 55% of the total number of plants in the United States and 72 % of the total volume. This as ociation is organized on a r egional basis, with five separate local a s sociations serving regions in all parts of the United States. The association imposes no inequitable restrictions on membership. The h earing was condu cted in the \Villard Room of the "'\Villard Hote l in W a hington on October 16 and 17 1933. Every person who filed a r e que t for an appearance was fully heard in accordance with statutory and reguhttory requirements. EVIDENCE SUBMITI'ED The Industry comprises approximately 750 plants with an invested capital of approximately $50,000,000. The annual sales :for the year 1931 were approximately $112 , 000,000 as compared to the sale s in 1 9' 29 of $147,000 000. The Industry s inc e August 1, 1933, has been operating under the s a me \\age and hour provisions as contained in the Code and provided under a ub stitute agreement to the President's Reemployment Agreemen t. The application of these wages and hours increased the a-ve r age ' " e ekly wage from $ 13.59 in June and July 1933 to $15 .93 i n Aug u s t 1 9 33 , an increase of 17 % . PROVISIONS OF THE CODE The CDde p r ovide s for a minimum wage of 35 per hour in the Northern sectio n of the Industry and 32lf2 p e r hour in the Southern s ection. Produ cti v e r nac h ine r y m a y b e op erated for two 40-hour shifts per week \lith the provi i o n that auy employer may e l ect to op erate one shift per and have the priv il e a e of operating 48 hours p e r week fo r two penocl of 4 c o nsec u tive week s ea c h p e r y ear. Empl oyee s may \\ork not more tha n 40 hours p e r w eek nor more than hour per duy, except that w h e n an employe r ele c t s to operate one . hift only, the employee may work not more than 48 hours per \leek n o r more than 9 hours p e r day.
PAGE 5

201 Overtime above 40 hours per week is to be paid for at the rate o:f time and one third. Provision is made for the maintenance of differentials between wages above the minimum. Provisions are made for guaranteeing sufficient pay to contractors to cover their wages plus a reasonable allowance for the contractor's HO:M:E WORK IIome work is a major problem in this Industry, due to the wide variety of work done and the wide geographical distribution o:f the workers. Workers are located in both the Metropolitan centers and in country districts in all sections of the United States. It is necessary to consider also the conflicting aspects of the problem, as represented by the possibility of low wages, long hours.., child labor, and unsanitary working conditions on the one hand, and the crippled, needy, widowed mothers and difficulty of obtaining trained workers on the other hand. From the evidence submitted and from independent investigations it was evident that more time should be allowed for studv of the problem. Accordingly a home-work committee has been provided for in the Code to set equitable piece rates and to study the practicability of elimination of home work, insofar as possible. INFANT'S AND CHILDREN'S WEAR The Infant's and Children's Wear Industry have submitted a Code of Fair Competition in which -they seek to include Infant's and Chil dren's knitted outerwear. As the Knitted Outerwear Code al:::;o includes Infant's and Children's Knitted Outerwear, a stay is mended for all manufacturers of Infant's and Children's Knitted Outerwear until a final determination can be made. FINDINGS I find that-( a) This Code complies in all respects with the pertinent provisions of Title I of the National Industrial Recovery Act, includin
PAGE 6

CODE OF FAIR COMPETITION FOR THE KNITTED O UTERWEAR I NDUSTRY ARTICLE I-PURPOSES To effectuate the policies of title I of the National Industrial Recovery Act, the following provisions are submitted as a Code of Fair Competition for the ICnitted Outerwear Industry, and upon approval by the President shall be the standard of fair competition for such Industry and shall be binding upon every member thereo f . ARTICLE s (a) The term " ICnitted Outerwear Industry " as used herein is defined to mean the manufacture of knitted outerwear apparel for men, women, and children, including infants, andjor the manufacture of knitted fabrics for outerwear purposes, but shall not include the products of the hosiery andjor underwear industries andjor the manufacture of knitted woolen goods in self-contained woolen mills of the wool textile industry as defined in the respective codes of thes e industries and shall not include the manufacture of garments made of purchased knitt-ed fabrics. (b) The term ' employee" as used herein includes any person engaged in any phase of the Knitted Outerwear Industry in any capacity in the nature of employee irrespective of the method of payment of compensation. (c) The term 'employer ' as used herein includes anyone by whom any such employee is compensated or employed. (d) The term ' productive machinery" as used herein is defined to mean all knitting, winding, pre sing (not including the pressing of dres es, suits, and coats) and fabric finishing machinery used in the Knitte d Outerwear Industry. (e) The term ' contractor ' as used herein shall include anyone who manufactures any of the products of the indu try as above defined, in whole or in part, for others who provide the necessary raw materials. (f) The term ' Act" as used herein refers to the National Industrial Recovery Act. (g) The term ' Code Authority" as used herein shall refer to the Knitted Outer\\ear Industry Code Authority set up in Article IX of this Code. (h) The t erm Administrator " means the Admini trator duly appointe d under the National Industrial Reco\ery Act.

PAGE 7

203 (i) The term "member of the Industry" as used herein i s defined to mean every employ e r, a s defin e d herein , and all firm s who use contractors or submanufacturers referre d to in Article VII hereof, and firms in any other related groups as may from time to time be included in the Industry by the Administrator upon application of the Code Authority. (j) The term "cleaner" a s used h erein mean s and includes any one who does janitor service or one who clean s floor s, buildings, or machinery and does nothing else but clean. (k) The term "learner" as used herein mean s and includ e s any one who has worked less than eight (8) weeks in the industry. ARTICLE III-HoURs (a) No employee in the Knitted Outerwear Industry, except repair-shop crews, engineers, electricians, firemen, supervisors, shipping, watching and outside crews, cleaners, and office employees re ceiving less than $35.00 per week shall be permitted to work in excess of forty ( 40) hours per week, and the hours in each week during which any employee shall have worked in other plants and/or in other industries shall be included in such forty (40) hours. (b) Office employees rec eiving less than thirty-five dollars ($35) per week shall not be permitted to work more than four hundred and eighty ( 480) hours in any twelve-week period, an average of forty ( 40) hours per week, and not more than forty-eight ( 48) hours in any one week. (c) On or before February 1, 1934, the Code Authority shall prepare and submit to the Administrator suggestions for a schedule of maximum hours to apply to those employees excepted under section (a) of this Article. (d) Employers in the Knitted Outerwear Industry shall not operate productive machinery in the Knitted Outerwear Industry for more than two (2) shifts of forty (40) hours each in any week , and no other machinery used in the Knitted Outerwear Industry shall be operate d for more than one (1) shift of forty (40) hours during any week; except that any employer may elect by notifying the Code Authority to operate all machinery for one (1) shift only, and such employer may operate all machinery on a schedule of hours of labor for his employees of not more than forty ( 40) hours per we e k except that for t\:vo (2) periods of four ( 4) consecutive weeks each, per year, such employer may operate not more than fortyeight ( 48) hours in any one week. (e) No employee shall work more than eight ( 8) hours in any on e day when on a forty ( 40) hour weekly shift nor more than nine (9) hours in any one day when on a forty-eight (48) hour weekly shift. (f) All overtime above forty (40) hours per week shall be paid for at the rate of time and one third. ARTICLE IV-WAGES (a) The minimum wages that shall be paid by employers in the Knitted Outerwear Industry to any of their employees, except learners, shall be at the rate of cents (35 ) per hour

PAGE 8

204 when employed in the Northern section of the industry and thirtytwo and one half cents (321j2 ) per hour when employed in the Southern section. (b) The States of Virginia, Tennessee, Kentucky, North Carolina, South Carolina, Georgia, Florida, Alabama, Missi ippi, Arkansas, Texa . Louisiana, and Oklahoma shall constitute the Southern section of the Industry. Other states and the District of Columbia shall constitute the Northern section. (c) The rate of pay for learners shall not be less than seventy five (75%) percent of the minimum rate and no employer shall include within the category of learners more than one such employee for every twenty (20) employees or fraction thereof. (d) The weekly compensation for employment now in excess of the minimum wages herein provided shall not be reduced , notwithstanding that the hours of work in any such employment may be hereby reduced, and piece rates shall be so adjusted that earnings at the shorter hours provided in this Code shall be at least equivalent to those obtaining under the longer hours heretofore prevailing. (e) The provisions for a minimum wage in this Code shall establis h a guaranteed minimum rate of pay per hour of employment, regardless of whether the employees' compensation is based on a time rate or piecework rate or any other basis. () Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the Act and of this Code. (g) A person whose earning capacity is limited because of age or physical or mental handicap may be employed on light work at a rate of pay not less than 75% of the minimum rate, provided that not more than one (1) employee for every twenty (20) employees or a fraction thereof may be placed within this classification, and the names and addresses of all such handicapped employees shall be reported to the Code Authority. ARTICLE V-CHILD LABOR No person under sixteen (16) years of age shall be employed in the I\:nitt ed Outerwear Industry, nor anyone under eighteen (18) years of age at operations or occupations hazardous in nature or detrimental to health. ARTICLE VI-HoME 'v oRrc (.a) No Knitted Outerwear products shall be manufactured at hom for sale or other commercial purpose e. cep t that for the period of one year after the effective date of this Code hand knittino (which shall include hand crocheting, hand embroidering, and hand ewing together of machine-made parts of garments), will be permitted when performed in accordance with regulations and/or piece rate. which may be e tablished as herein provided. (b) Anything ontained in Article IV of this Code to the contrary n otwith. th e Admini trator may fix on or before January 15, 1934-. after notice to the Code Authority, and may

PAGE 9

205 change from time to time after like notice, minimum piecework rat;.s for any of the operations described in paragraph (a) of this Aroo1cle. (c) The Administrator shall appoint a Hand-Knitted Division Committee of seven, three of whom shall be fairly representative of hand-knit manufacturers, three fairly representative of the machine manufacturers and recomm-ended by the Code Authority, and .one representing the Administrator. This Committee shall report to the Administrator within thirty (30) days after the effective date of this Code or within such further time as may subsequently be allowed by the Administrator or his Deputy, with re spect to proper minimum piecework rates and shall make a study of and report within six months from the effective date of this Code, upon the practicability of discontinuing home work in the Industry or setting up a system of control for home workers. ARTICLE VII-CoNTRACTING All members of the Knitted Outerwear Industrv who use contractors or submanufacturers for knitting or fabricating garments, or any part thereof, shall pay such rates to the contractor or submanufacturer as will enable the contractor or submanufacturer to pay his employees at least the wages provided for in this Code, together with a reasonable allowance for the contractor's overhead. The Code Authority shall formulate additional regulations, with the approval of the Administrator, to carry into effect the purpose and intent of this provision. ARTICLE VIII-GENERAL LABOR PROYISIONS (a) Employees shall have the right to organize and bargain col lectively through repre sentatives of their own choosing, and shall be free from the interference, re straint, 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 refrain from joining, organizing, or assisting a labor organization of his own choosing. 1 (c) Employers shall comply with the maximum hours of labor, minimum rates of pay, maxin1un1. machine-load of employees, and other conditions of employment approved or prescribed by the President. (d) 'Vithin each State this Code shall not supersede any laws o such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, or general working conditions than under this Code. (e) Each employer shall post in conspicuous places on his premises full copies of this Code, in the form pres cribed by the Code Authority. ARTICLE IX-ADMINISTRATION (a) To effectuate further the policies of the Act, a Knitted Outerwear Industry Code Authority is hereby de signated to act as the

PAGE 10

206 representative body from the Industry in the administration and enforcement of this Code and shall have in addition to the specific powers herein conferred, all general po\\ers necessary to a si t the Administrator in such administration and enforcement. (b) This Code Authority shall con ist of eight ( 8) representa tives of the Knitted Outerwear Industry elected by a fair method of selection, to be approved by the Administrator, and not more than three (3) members without vote and without cost to the Industry, appointed by the Administrator. Such agency may from time to time 12resent to the Administrator recommendation based on conditions 1n this industry as they may develop which will tend to effectuate the operation of the provisions of this Code and the policy of the Act. Such recommendations, when approved by the Administrator, shall have the same force and effect as any other provisions of this Code. (c) Such agency is also set up to cooperate with the Administrator in making investigations as to the functioning and observance of any provision of this Code at its own instance or on complaint of any person affected, and to report same to the Administrator. (d) In addition to the information required to be submitted to the Code Authority there shall be furnished to Government Agencies such statistical information as the Administrator may deem necessary for the purpose stated in section 3 (a) of the Act. (e) Members of the Industry who manufacture Infants' and Children's wear up to and including izes for 15-year-old children may elect to form a separate group within the industry and shall have full rights to autonomy in regard to trade practices. This group may either approve the trade practices applying to other members of the Industry or separate and distinct trade practices may be promulgated and adopted as provided in this Code. (f) 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 expense of its administration. The reason able share of the expenses of administration shall be determined by the Code Authority, subject to review by the Administrator on the basis of volume of business and/or such other factors as may be deemed equitable to be taken into consideration. (g) The Code Authority will cooperate \\ith the Administrator in the establishment of an Advisory Council for all or any group of textile industries, for the purpose of considering and advising with the Administrator on matters concerning two or more of such industries operating under separate Codes of Fair Competition, and upon request and with the approval of the Administrator, appoint to such Advisory Council one or more representatives of the l(nitted Outerwear Industry. ARTICLE X-TRADE PRACTICES To accompli s h the purpo es contemplated by the Act the following practices are hereby declared to be unfair methods of competi tion and in Yiolation of this Cocle.

PAGE 11

207 (a) Selling Beloto Oost.-No me1nber of the Industry shall sell any product or service below cost based upon principles of costing formulated by the Code Authority and approved by the Administrator, except when necessary to meet competition, to dispose of distress merchandise or under other circumstances to be defined by the Code Authority. (b) Oonsignment.-No member of the industry shall ship goods on consignment except under circumstances to be defined by the Code Authority, where peculiar circum s tances of the Knitted Outerwear Industry require the practice. (c) l1fisbranding.-N o member of the Industry shall falsely mark andjor brand lmitted outerwear products for the purpose or with the effect of misleading or deceiving purchasers with respect to the origin, trade marking, quality, yarn content, . or construction of suc h products. (d) Misrepr esentatio-n.-No member of the industry shall publish advertising (whether printed, radio, or of any other nature) which is mislea(hng or inaccurate in any material particular, nor shaH any member in any way misrepresent any goods (mcluding but without limitation its use, trade mark, grade, quality, quantity,. origin, size, substance, character, nature, finish, material, content, or preparation) or credit tenns, values, policies, services, or the nature or form of the busine ss conducted. (e) Terms of Sale.-(l)No member of the Industry shall sell or offer to sell knitted outerwear products upon terms other than a maximmn discount of three (3) percent to the wholesale trade for payment on the lOth day of the month following the designated shipping date, or equivalent discount for longer periods. (2) No member o:f the Industry shall sell or offer to sell knitted outerwear products to the retail trade upon terms other than a maximum discount of eight (8) percent for payment on the lOth day of the month following that of shipment. For the purpose of these provisions, the 25th calendar day sha ll be considered the end of the month. (f) Returns.-N o member of the Industry shall accept the return of garments that have been worn, or merchandise not worn but which has been accepted by a except uncler circum stances to be defined by the Code Authority. (g) o Inemher of the Industry shall secretly directly offer or make any payment or allowance of a rebate, refund, com mission, credit, unearned discount or excess allowance, whether in the form of money or otherwise, nor shall a member of the industry secretly offer or extend to any customer any s pecial service or privilege not extended to all customer.:; of the sUJne Class, for the purpose of influencing a sa le. (h) D elive1y Oharges.-All knitted outer\\ear products shall be sold F.O.B. shipping point, except for deliYeries within metropolitan areas local to the shipper, subject to exceptions approved by the Code Authority. ARTICLE XI-STANDARDS (a) All standards already formulated in cooperation with the Bureau of Standards of the United States Department of Commerce

PAGE 12

208 and approved by the industry, or standards which shall be so formulate d and approved, shall become the standards of the industry. The Knitte d Outerwear Code Authority shall notify all members of the industry and all known interested per on in the industry of each new standard adopted, and the eff e ctive date thereof. All merchandis e manufactured after the effective date shall be plainly aJ:?.d vis ibly marked by a firmly sewed label, "Substandard" where uch merchandise comes b e low the minimum standards. EYery manufacturer shall plainly mark with a stamp or a firmly sewed label the size or measurement of his product thereon. (b) All garments manufactured or distributed shall bear an N.R.A. label, which shall remain attached to such garments. Such label shall be in such form as may be pres cribed by the Code Authority. The Code Authority shall have the exclusive right in this industry to issue and furnish said labels to the members thereof. The privilege of using such label shall be granted and such label shall be issued to any employer from time to time engaged in the industry, upon application therefor to the Code Authority accompanied by a statement of compliance with the standards of operation prescribed by and the provisions of this Code. The privilege of using such labels and the issuance thereof may be withdrawn and cease or may be suspended in respect to any such manufacturer whose operations, after appropriate hearing by the Code Authority and review by the Admmistrator, shall be found to be in substantial violation of such standards and provisions. Employers shall be entitled to obtain and us e such labels if they comply with the pro vi s ions of this Code. The Code Authority may establish appropriate m achinery and regulations for the iss uance of such labels, inspec tion, examination, and supervision of employers engaged in the industry, in accordan c e with the foregoing provisions. ARTICLE XII-: M oDIFICATION (a) This Code and all the provis ion s thereof are expressly made subject to the right of the in accordance with the provis ion s of subsection (b) of Section 10 of the National Industrial Rec overy Act, from time to time to cancel or modify any order, approval, licen se , rule or regulation i s sued under Title I of said A c t and specifically, but without limitation, to the right of the President to c ancel or modify his approval of this Code or any conditions imr.o s ed by him upon approval thereof. (b) This Code, exc ept as to provisions required by the Act, may be modified on the basis of experienc e or changes in circumstances, su c h modifi cation to be based upon application to the Administrator and su c h n otic e and hearing as he shall specify, and to become effective on approval of the Pres ident. ARTICLE XIII-MONOPOLIES The prov1 s10ns of this Code shall not be interpreted or applied to promote m o nopolie s or monopoli s tic practices or to eliminate or oppress sm a ll enterprise s or to discriminate against them.

PAGE 13

209 ARTICLE XIV-EFFECTIVE DATE This Code shall become effective the second Monday after its approval by the President. Approved Code No. 16-:l. Registry No. 243-1-02. 0

PAGE 16

UNIVERSITY OF FLORIDA llllllllllllllllllllllllllll l lllllllllllllll l lllllllllll l lllllll 3 1262 08486 8024