Citation
Code of fair competition for the handkerchief industry

Material Information

Title:
Code of fair competition for the handkerchief industry as approved on October 9, 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:
iv, 24 p. : ; 23 cm.

Subjects

Subjects / Keywords:
Handkerchiefs -- 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.53-Reprint Mar. 27, 1935 ; Registry No.237-1-01"
General Note:
"Includes amendments nos.1 and 2".

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:
004851793 ( ALEPH )
601636964 ( OCLC )

Downloads

This item has the following downloads:


Full Text


Approved Code No. 53-Reprint Mar. 27, 1935


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE


HANDKERCHIEF INDUSTRY


AS APPROVED ON OCTOBER 9, 1933
BY
PRESIDENT ROOSEVELT


WE DO OU P AR


UNV OFF LQ


UNIV. OF FL L0g.

*.. o ... _
L~Y~.EIS !~


U.S. DEPO.TORY


INCLUDES AMENDMENTS NOS. 1 AND 2









UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1935


fPr sale by the Superintendent of Documents. Washington, D.C. - Price 5 cents


Registry No. 237-1-01


--


- a





















This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by the following N. R. A. offices:

Atlanta, Ga.: 625 Citizens & Southern National Bank Building.
Baltimore, Md.: 130 Customhouse.
Birmingham, Ala.: 201 Liberty National Life Building.
Boston, Mass.: Room 1200, 80 Federal Street.
Buffalo, N. Y.: 219 White Building.
Chicago, Ill.: Room 204, 400 North Michigan Avenue.
Cleveland, Ohio: 520 Bulkley Building.
Dallas, Tex.: 1212 Republic Bank Building.
Detroit, Mich.: 415 New Federal Building.
Houston, Tex.: 403 Milam Building.
Jacksonville, Fla.: 425 United States Courthouse and Post Office
Building.
Los Angeles, Calif.: 751 Figueroa Street, South.
Louisville, Ky.: 408 Federal Building.
Minneapolis, Minn.: 900 Roanoke Building.
Nashville, Tenn.: 415 Cotton States Building.
Newark, N. J.: 434 Industrial Office Building, 1060 Broad Street.
New Orleans, La.: 214 Customhouse.
New York, N. Y.: 45 Broadway.
Oklahoma City, Okla.: 427 Commerce Exchange Building.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pittsburgh, Pa.: 401 Law and Finance Building.
Portland, Oreg.: 407 Park Building.
Providence, R. I.: National Exchange Bank Building, 17 Exchange
Street.
St. Louis, Mo.: Suite 1220, 506 Olive Street.
San Francisco, Calif.: Humbolt Bank Building, 785 Market Street.
Seattle, Wash.: 1730 Exchange Building.













Approved Code No. 53


APPROVED CODE OF FAIR COMPETITION
FOR THE

HANDKERCHIEF INDUSTRY

As Approved on October 9, 1933
BY
PRESIDENT ROOSEVELT


EXECUTIVE ORDER

CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF 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 Handkerchief Industry, and hearings hav-
ing 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
Competition complies in all respects with the pertinent provisions
of Title I of the 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.
FRANKLIN D. ROOSEVELT.
The WHITE HOUSE,
October 9, 1933.
Approval recommended:
HUGH S. JOHNSON.


124920-- 1603-118---35




















REPORT TO THE PRESIDENT


OcTOBE 4, 1933.
The PRESIDENT,
The White House.
MY DEAR MR. PRESIDENT: I have the honor to submit and recom-
mend for your approval, the Code of Fair Competition for the
Handkerchief Industry. The Code has been approved by the Labor
Advisory Board, the Consumers Advisory Board, and the Industrial
Advisory Board.
An analysis of the provisions of the Code has been made by the
Administration; and a complete report is being transmitted to you.
I find that the Code complies with the requirements of clauses 1
and 2, subsection (a) of Section 3 of the National Industrial
Recovery Act.
I am, my dear Mr. President,
Very sincerely yours,
HUoH S. JOHNSON,
A administrator.
Enclosure.
(IV)












CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF
INDUSTRY

ARTICLE I
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 Handkerchief Industry, and shall be
the standard of fair competition for this industry and shall be bind-
ing upon every member of the industry.

ARTICLE II-DEFINITIONS
1. The term "Industry as used herein. means and includes the
manufacture and/or production of handkerchiefs, in whole or in
part, by hand or machine, including embellishing and/or finishing
by hand or by machine, and the sale thereof within the confines of
the Continental United States by any manufacturer, producer or
importer or by any firm, corporation or any other form of enterprise
totally or partly owned or directly or indirectly controlled by any
manufacturer, producer or importer of handkerchiefs.
The term shall not include, however, the embellishing of handker-
chiefs by Schiffli embroidery machines, so-called handloom ma-
chines and so-called hand-embroidery machines, nor shall it in-
clude the manufacture in whole or in part of handkerchiefs in Puerto
Rico. The termn "Industry" as used herein. shall, however mean
and include the sale within the Continental United States of hand-
kerchiefs manufactured in whole or in part in Puerto Rico or else-
where outside the confines of the Continental United States.2
2. The term "n ember of the industry as used herein shall
include:
(a) Handkerchief manufacturers who own or operate their plants
and whose production is sold, in whole or in part, directly by them or
through salesmen, agents, or representatives, to the wholesale or
retail trades;
(b) Handkerchief manufacturers owning plants or operating
plants exclusively on a contract basis for others, in whole or in part
engaged in the production or finishing of handkerchiefs.
(c) Those who purchase materials and have sane fabricated into
handkerchiefs, plain or embellished, by contractors, agents, sub-
agents, or individuals within the confines of the United States or its
insular possessions or territories;
(d) Those engaged in wholesale distribution who further the man-
vfacture of handkerchiefs by any of the following manufacturing
processes, but without limitation: cutting, stitching, ironing, folding,
pressing, tying, packaging, boxing, embellishing, or otherwise
finishing.
SItalieimed words added by Amendment No. 2, approved Oct. 31, 1934.







(e) Those engaged in the Handkerchief Industry under more than
one of the above classifications, or otherwise engaged exclusively or
in part as employers or on their own behalf.2
3. The term "employee" as used herein includes any person en-
gaged in any phase of the industry, in any capacity, receiving com-
pensation for his services, irrespective of the nature or method of
compensation.
4. The term "employer" as used herein includes any one for
whose benefit or on whose business such an employee is engaged.
5. The term Southern Section of the United States" as used
herein shall include the States of Alabama, Florida, Georgia, Ken-
tucky, Louisiana, Mississippi, North Carolina, South Carolina,
Tennessee, Texas, and Virgnia.
6. The terms President ", "Administrator ", and "Act ", as used
herein, shall mean respectively, the President of the United States,
the Administrator of the National Recovery Administration or his
duly authorized Deputy, and the National Industrial Recovery Act.
7. The term "effective date" as used herein shall mean and this
Code shall become effective on the tenth (10th) day after this Code
shall have been approved by the President of the United States.

ARTICl III-HouRs OF LABOR
1. Except as hereinafter provided, no employee shall work, or be
permitted to work, in excess of eight (8) hours in any twenty-four
(24) hour period, or in excess of forty (40) hours in any one week.
Overtime is expressly prohibited, except as hereinafter provided.
2. No member of the industry shall operate any machine employed
in the manufacture or embellishment of handkerchiefs, whether op-
erated by power or by hand, on a schedule of more than one shift
of forty (40) hours in any one week, except that, for a limited time
or times, due to emergency arising through accident or similar cause,
the Code Authority may, upon the express approval of the Adminis-
trator, authorize the operation of machines for more than forty (40)
hours per week.
3. Members of shipping crews shall not work, or be permitted to
work, in excess of forty (40) hours in any one week or more than
eight (8) hours in any twenty-four (24) hour period, except that
such employees may be permitted to work forty-eight (48) hours per
week during a maximum of sixteen (16) weeks in any calendar year,
provided, that for any and all such overtime work, such employees
shall be paid at not less than the hourly rate payable to them for
the regular forty (40) hour week.
4. Members of repair-shop crews, machinists, electricians, and
drivers shall not work, or be permitted to work, in excess of forty-
five (45) hours in any one week, except that persons employed in
such capacities may be employed in excess of this schedule in case
of emergency arising through accident or similar cause. Overtime
shall be paid for at not less than the regular hourly rate for such
employee.
5. No employee shall work or be permitted to work for a total
number of hours in excess of the number of hours prescribed for
each week and day, whether employed by one or more employers.
2 See footnote, p. 1.








6. The provisions of this Article shall have no reference to mem-
bers of outside sales force or to watchmen.
7. The provisions of this Article shall have no reference to execu-
tives, or to persons in administrative or supervisory capacities, or
to engineers or firemen, provided such persons receive not less than
twenty-five dollars ($25.00) per week.
8. The provisions of this Article shall not apply to manufacturing
operations carried on outside the Continental portion of the United
States.
9. No employee shall work or be permitted to work in any factory
on any Saturday or Sunday except such employees for whom specific
provision is made in this Section and in Sections 6 and 7 of this
Article. However, for the sole purpose of dampening handkerchiefs
in order that work may be ready for the ironing crew the following
Monday morning, not more than four (4) employees in any one (1)
plant shall be permitted to work on Saturday. No such employees
shall be permitted to work in any case in excess of forty (.40) hours
in any one (1) week, including the hours that have been worked by
such employee on the Saturday of said week. In any week in which
a legal or religious holiday occurs the Code Authority may permit
work to be done on a Saturday of such week.2
10. Except as herein provided no work shall be done in any factory
except between the hours of 8 A. M. and 12 noon and between the
hours of 1 P. M. and 5 P. M1. In the event, however, that all or a
majority of factories in any particular city or area request a change
from the standard hours herein above set forth, the Code Authority,
subject to the disapproval of the National Industrial Recovery
Board, may modify the standard hours for such city or area. In
no case shall the lunch period be less than one hour and in no case
shall such standard hours exceed 8 hours per day.

ARTICLE IV-WAGES
1. Except as hereinafter provided, no employee in any section of
the United States other than the Southern Section as defined in
Section 5 of Article II, of this Code, shall be paid at less than the
rate of thirteen ($13.00) dollars per week of forty (40) hours nor
,hall any employee engaged in the Southern Section of the United
States be paid at less than the rate of twelve ($12.00) dollars per
week of forty (40) hours.
No member of the industry shall make any deduction from the
wages of any employee because of spoilage or because of the infrac-
tion of any rule where the effect of such deduction would be to re-
duce the net weekly wage of any such employee to less than the
minimum wages provided herein.
Each member of the industry shall maintain accurate payroll
records (including records of hours worked) and shall submit re-
ports based thereon at four weekly intervals to the Confidential
Agency.2
2. In the event that the differentials herein provided between the
Southern and other sections of the United States result in an unfair
disadvantage to any section, the Administrator may, either on the
recommendation of the Code Authority or at his own instance, make
SSee footnote, p. 1.







such wage readjustments as may be necessary to maintain the proper
competitive relationship between sections of the country.
3. Each member of the industry shall file with, the Confidential
Agency of the Code Authority duly certified schedules of rates of
pay for piecework production for each type of standard operation
in force in his plant (including homework, if any and where per-
missible), and shall advise said Agency of any change or alteration
which may at any time be made in such schedules. Said Confidential
Agency shall report to the Code Authority, under key numbers, all
such schedules, in order that the Code Authority may be kept in-
formed as to the observance or nonobservance of this Code. Unless
ordered by the National Industrial Recovery Board, said Confidential
Agency shall in no case disclose the name of anyone to whom any
key number may have reference."
4. No learner engaged in the actual manufacture of handker-
chiefs shall be paid at less than the rate of nine dollars ($9.00) per
week of forty (40) hours. A person shall be deemed a learner for
no more than eight (8) weeks. Any time worked by a learner shall
be deemed a part of his learning period, whether such time is
worked continuously or in more than one shop or for more than
one employer. The number of learners in any one plant at any
operation shall not exceed ten per cent (10%) of the total number
of employees engaged in said operation in said plant.
5. The wage rates for occupations other than those receiving the
minimum wage herein prescribed, shall at least maintain the differ-
ence in earning for those occupations for a full-time week existing
on July 1, 1933; provided, however, that these rates shall be subject
to reconsideration for adjustment by the Code Authority and by
the Administrator. Subject to review by the Code Authority and
by the Administrator, no employer shall reduce the weekly com-
pensation for employment now in excess of the minimum wages
hereby agreed to, notwithstanding that the hours worked in such
employment may hereby be reduced.
6. No employee shall be paid less than the minimum rate of wages
set forth in this Article regardless of whether such employee is
compensated on a time-rate or piece-rate basis.
7. A person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmity, may be employed on
light work at a wage below the minimum established by this Code,
if the employer obtains from the State Authority designated by the
United States Department of Labor, a certificate authorizing such
person's employment at such wages and for such hours as shall be
stated in the certificate. Such Authority shall be guided by the in-
structions of the United States Department of Labor in issuing
certificates to such person. Each employer shall file monthly, with
the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximuro hours of work for
such employee.2
8. (a) Except as hereinafter provided, no member of the industry
shall manufacture or finish or cause to be manufactured or finished
any handkerchief by means of home labor, except that handkerchiefs
made entirely by hand may be manufactured at home.'*
See footnote, p. 1.
Temporarily stayed. (See order approving this amendment, p. 18.)








(b) Anything to the contrary herein notwithstanding, a person
may be permitted to engage in homework at the same rate of wages
as is paid for the same type of work performed in the factory or
other regular place of business if a home-worker's certificate is
obtained from the State Authority or other officer designated by the
United States Department of Labor, such certificate to be granted in
accordance with instructions issued by the United States Department
of Labor, provided
(1) Such person is physically incapacitated for work in a factory
or other regular place of business and is free from any contagious
disease; or
(2) Such person is unable to leave home because his or her services
are absolutely essential for attendance on a person who is bedridden,
or an invalid and both such persons are free from any contagious
disease, or because of the necessity of caring for minor children or
dependents unable to leave home.
Any employer engaging such a person shall keep such certificate
on file and shall file with the Code Authority the name and address
of each worker so certified.
9. The provisions of this article shall not apply to manufacturing
operations carried on outside the Continental portion of the United
States.
ARTICLE V-MINIMUM AGE
1. No person under sixteen (16) years of age shall be employed in
the Industry. In the event of a claim of alleged violation of this
section, an employer shell be deemed to have complied with the pro-
visions of this section if he shall have on file and make available for
inspection by the Confidential Agency a certificate of age issued by
the duly authorized department of the State in which the employer
operates, showing the age of the employee at the time of entering
such employment to be no less than the age required by this section.2

ARTICLE VI-ADMINISTRATION
1. To further effectuate the purposes of the Act, a Code Authority
is hereby constituted to cooperate with the National Industrial Re-
covery Board in the Administration of the Code. Said Code Author-
ity shall consist of not more than thirteen (13) members to be elected
in the manner hereinafter set forth:
(a) Nine (9) members and tuo (2) alternates shall be appointed
by the Board of Directors of the Handkerchief Industry Association,
Inc.
(b) One (1) member shall be appointed by the National Industrial
Recovery Board on the nomination of the Labor Advisory Board
of the National Recovery Administration.
(c) In addition to the foregoing, the National Industrial Recov-
ery Board may appoint not more than three (3) mem-bers without
vote to represent the National Industrial Recoivery Board and or
such groups or interests as it may designate.2
2. In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with
'See footnote, p. 1.
124920"-1603-118---35---2







the provisions of the Act, the Administrator may provide such hear-
ings as he may deem proper; and thereafter if he shall find that
the Code Authority is not truly representative or does not in other
respects comply with the provisions of the Act, may require an
appropriate modification in the method of selection of the Code
Authority.
3. Each trade or industrial association participating in the selec-
tion or activities of the Code Authority shall: (1) impose no
inequitable restrictions on membership, and (2) submit to the
Administrator true copies of its articles of association, bylaws,
regulations, and any amendments when made thereto, together with
such other information as to membership, organization, and activities
as the Administrator may deem necessary to effectuate the purposes
of the Act.
4. If the National Industrial Recovery Board shall at any time
determine that any action of the Code Authority or any agency
thereof may be unfair or unjust or contrary to the public interest,
the National Industrial Recovery Board may require that such action
be suspended to afford an opportunity for investigation of the merits
of each action and further consideration by the Code Authority
or agency pending final action which shall not be effective unless the
National Industrial Recovery Board approves or un less it shall fail
to disapprove after thirty (30) days' notice to it of intention to pro-
ceed with such action in its original or modified form.2
6. Subject to such rules and regulations as may be issued by the
National Industrial Recovery Board, the Code Authority shall have
the following powers and duties, in addition to those authorized by
other provisions of the Code.
(a) To incorporate itself, the Code Authority may incorporate
under the laws of any State of the United States or of the District
of Columbia, such corporation to be not for profit and to be known
as "The Handkerchief Industry Code Authority "; provided that
the powers, duties, objects and purposes of the said corporation, shall,
to the satisfaction of the National Industrial Recovery Board, be
limited to the powers, duties, objects and purposes of the Code Au-
thority as provided in the Code; provided further that the Code
Authority shall submit to the National Industrial Recovery Board,
for its approval, its proposed Certificate of Incorporation and pro-
posed by-laws, and no amendment of either shall be made without
the like prior approval of the National Industrial Recovery Board.
If at any time, the National Industrial Recovery Board shall de-
termine that the corporate status accrued by the Code Authority is
interfering with the proper exercise of its powers and duties under
this Code, or with the effectuation of the policies or purposes of the
Act, it may, after such notice and hearing as it may deem necessary,
require an appropriate modification of the structure of the Corpora-
tion (if consistent with the law of the State of Incorporation), the
substitution of a corporation created under tie laws of another State
in the same manner as the existing Code Authority, the substitution
of a non-corporate Code Authority truly representative of the Indus-
try or such other actions as it may deem expedient.
SSee footnote, p. 1.








(b) To elect officers and to assign to them such duties as it may
consider advisable, to set up rules for its own. procedure, and to
provide for its continuance as the administrative agency of this
Code in accordance with the terms of the Act and the prinolples
herein set forth.
(c) To adopt by-laws, and rules and regulations for its proncdure
and for the administration and enforcement of this Code, and to sub-
mit the same to the National Industrial Recovery Board for its ap-
proval, together with true copies of any amendments or additions
when made thereto, and minutes of meetings when held, and such
other information as to its activities as the National Industrial Re-
covery Board may deem necessary to effectuate the purposes of the
Act.
(d) To insure the execution of the provisions of this Code and to
provide for the Compliance of the Industry with the provisions of
the Act.
(e) To select a Confidential Agency. The Agency shall in no
way be engaged in the industry or connected with any member
thereof. The Code Authority shall furnish said Agency with such
credentials as are necessary to facilitate its operations.
The Confidential Agency shall obtain. from all members of the
Industry reports of such character and in. such form as is permitted
under this Code and under the Act. All individual reports shall be
held as secret and confidential between the Agency and the reporting
members, except as hereinafter provided.
Each member of the industry shall maintain accurate and complete
records of its transactions wherever such records may be required
under any of the provisions of this Code, and shall furnish accurate
reports based upon such records concerning any of such activities
.ihen required by the Code Authority or the National Industrial
Recovery Board. If the Code Authority or the National Industrial
Recovery Board shall determine that substantial doubt exists as to
the accuracy of any such report, so much of the pertinent books,
records, and papers of such member as may be required for the verifi-
cation of such report may be examined by an impartial agency
agreed upon between the Code Authority and such member, or, in the
absence of agreement, appointed by the National Industrial Recovery
Board. In no case shall the facts disclosed by such examination be
made available in identifiable form to any competitor, whether on
the Code Authority or otherwise, or be given any other publication,
except such as may be required for the proper administration and
enforcement of the provisions of this Code.
In addition to information required to be submitted to the Code
Authority, members of the industry shall furnish such statistical
information as the National Industrial Recovery Board may deem
necessary for the purposes recited in Section 3-A of the Act, to such
Federal and State Agencies as it may designate; provided that noth-
ing in this Code shall relieve any member of the industry of any
obligations to furnish reports to any government agency.
(f) To secure from the Confidential Agency consolidated reports
in respect to all matters pertinent to this Code.
(g) To submit reports either directly to the National Industrial
Recovery Board, (or through the Confidential Agency to it, if the
reports be of a secret or confidential nature), in such form and at
such time as it may require, in order that the President may be kept







informed with respect to the observance or non-observance of the
Code and of the Act.
(h) To direct the Confidential Agency to make surveys and inves-
tigations, compile reports, collect statistics in such manner and under
such regulations as the Code Authority may prescribe, subject to
disapproval of the National Industrial Recovery Board.
(i) To create, subject to the approval of the National Industrial
Recovery Board, a Trade Practice Complaints Committee which shall
investigate all alleged violations of this Code other than alleged
labor violations, and act upon the results thereof, and, if the findings
justify, to transmit said findings to the National Industrial Recovery
Board and to any other proper Governmental agency.
(j) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such.
tbade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(k) To make recommendations to the National Industrial Recov-
ery Board for the coordination of the administration of this Code
with such other codes, if any, as may be related to or affect 'members
of the industry, or any subdivision thereof.
(1) It being found necessary, in order to support the admi.nis-
tration of this Code and to maintain the standards of fair competi-
tion established by this Code, and to effectuate the policy of the Act,
the Code Authority is authorized: (1) To incur such reasonable
obligations as are ,nceissary and proper for the foregoing purposes
and to meet such obligations out of funds which may be raised as
hereinafter provided and which shall be held in trust for the pur-
poses of the Code; (2) To submit to the National Industrial Recov-
ery Board for its approval, subject to such notice and opportunity
to be he ard as it may deem necessary, (a) an itemized budget of its
estimated expensi.s for the foregoing purposes, and (b) an equitable
basis upon which the funds necessary to support such budget shall
be contributed by members of the industry; and (3) After such
budget and basis of contribution have been approved by the National
Industrial Recovery Board, to determine and obtain equitable con-
tribution as above set forth by all such members of the industry, and
to that end, if necessary, to institute legal proceedings therefore in
itf own name.
Each member of the industry shall pay his or its equitable contri-
buti;on to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regu-
lations pertaining thereto issued by the National Industrial Recovery
Board. Only members of the industry complying with the Code and
contributing to the expenses of its administration as hereinabove
provided (unless duly exempted from making such contributions),
shall be entitled to participate in the selection of members of the
Code Authority or to receive the benefits of any of its voluntary
actitil-es, or to make use of. any emblem or insignia of the National
Recovery A dm in itiration.
The Code Authority shall neither incur nor pay any obligations
substantially in excess of the amount thereof as estimated in its







approved budget and shall in no event exceed the total amount con-
tained in the approved budget, except upon approval of the National
Industrial Recovery Board; and no subsequent budget shall contain
any deficiency item for expenditures in excess of prior budget esti-
mates, except those which the National Industrial Recovery Board
shall have so approved.
(m) To cause to be formulated methods of cost finding and ac-
counting capable of use by all members of the industry, and to sub-
mit such methods to the National Industrial Recovery Board for
review. If approved by the National Industrial Recovery Board,
full information concerning such methods shall be made available
to all members of the industry. Thereafter, each. members of the
industry shall utilize such methods to the extent found practicable.
Nothing herein contained shall be construed to permit the Code Au-
thority, any agent thereof, or any member of the industry to suggest
uniform additions, percentages or differentials or other uniform
items of cost which are designed to bring about arbitrary uniformity
of costs or prices.
(n) To make complaint to the President on behalf of the Indus-
try, in accordance with the provisions of Section 3 (e) of the Act,
whenever any article is being imported into the United States in
substantial quantities or increasing ratio to domestic production of
any competitive article or articles and on such terms or under such
conditions as to render ineffective or seriously to endanger the main-
tenance of this Code, and for the purpose of making such complaint,
to secure from all members of the industry, through the Confidential
Agency, all information necessary to support such complaint.
(o) To establish or designate, subject to the approval of the Na-
tional Industrial Recovery Board, such agencies on planning and
fair practice as may be necessary, which agencies shall cooperate
with the Code Authority in developing fair trade practices and in.-
dustrial planning, including the regularization and stabilization of
employment for the industry.
(p) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
codes as may be related to the industry for the purpose of formu-
lating fair trade practices to govern the relationships between em-
ployers under this Code and employers under such other Codes to
the end that such fair trade practices may be proposed to the
National Industrial Recovery Board as amendments to this Code
and to such other codes, and to issue such further rules and regula-
tions as may be necessary to establish such further fair trade prac-
tices, as may be approved by the National Industrial Recovery
Board.
(q) To initiate, consider, and make recommendations for the
modification or amendment of this Code, which modifications or
amendments shall become effective as part hereof upon approval by
the National Industrial Recovery Board after such notice as it may
specify.
(r) To provide appropriate facilities for arbitration, and, sub-
ject to the approval of the National Industrial Recovery Board, to
prescribe rules of procedure and rules to effect compliance 'with
awards and determinations.







(s) In order to assist in making effective the reports from the
industry and in eliminating unfair competition, the Code Authority
may appoint a committee so constituted as to give consumer and
governmental representation satisfactory to the National Industrial
Recovery Board to make a study with a view to the establishment
of classifications and standards of quality and size of staple products
of the industry wherever such standards are deemed feasible. The
findings and recommendations of this committee shall be submitted
to the National Industrial Recovery Board, and after such hearings
and investigations as it may designate and upon approval by it
shall be made a part of this Code and shall be binding upon every
member of the industry.2
6. Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber of the Code Authority be liable in any manner to anyone for any
act of any other member, officer, agent, or employee of the Code
Authority. Nor shall any member of the Code Authority be liable
to anyone for any act or omission to act under this Code, except for
his own willful malfeasance or non-feasance.
7. There shall be established an Industrial Relations Committee
for the Industry, which shall consist of an equal number of repre-
sentatives of employers and employees and an impartial chairman.
The national Industrial Recovery Board shall appoint such impartial
chairman upon the failure of the committee to select one by agree-
ment. If no truly representative labor organization exists, the em-
ployee members of such board may be nominated by the Labor Ad-
visory Board of the N. R. A. and appointed by the National Indus-
trial Recovery Board. The employer representatives shall be chosen
by the Code Authority. Such committee shall deal with complaints
relating to labor in accordance with rules and regulations issued by
the National Industrial Recovtry Board. The Industrial Relations
Committee may establish such divisional, regional, and local indus-
trial adjustment agencies as it may deem desirable, each of which
shall be constituted in like manner as the Industrial Relations
Com mittee.2

AmrnIC VII-TRADE PRACTICES
1. No member of the Industry shall directly or indirectly give,
permit to be given, or offer to give, anything of ealue for the purpose
of influencing or rewarding the action of any employee, agent or
representative of another in relation to the business of the employer
of such employee, the principal of such agent,. or the represented
party, without the knowledge of such employer, principal, or party.
This provision shall not be construed to prohibit free and general
distribution of articles commonly used for advertising except so far
as such articles are actually used for commercial bribery as herein-
above defined."
2. No member of the industry shall make or allow to be made any
payments or allowance of rebates, refunds, commissions, credits, or
unearned discounts, whether in the form of money or otherwise, or
extend to certain purchasers any special services or privileges not
extended to all purchasers on like terms and conditions. No member
2See footnote, p. 1.








of the Industry shall allow buying commissions, rebates, extra dis-
counts, or other concessions to purchasing agents or to purchasing
agencies.
3. No member of the industry shall extend to a buyer the right
to confirm a proposed purchase for a period of more than thirty
(30) days from the date when said buyer placed the order as subject
to further confirmation. No option shall be extended to a buyer for
more than thirty (30) days.
4. No stock protection shall be given involving price adjustment on
merchandise delivered and no price guaranty shall be gzven against
decline on orders booked for future delivery.2
5. No member of the Industry shall accept the return of merchan-
dise sold to a customer in good faith and shipped in accordance with
specifications, order, or contract. In no event shall any merchandise
be accepted for return, if retained by a customer for more than ten
(10) days after receipt of the merchandise, unless the said merchan-
dise is returned because of hidden defects effecting the salability of
the merchandise.
6. No member of the industry shall accept the return of merchan-
dise for exchange.
7. No member of the industry shall disseminate, publish, or circu-
late any materially false or misleading information relative to any
product of a competitor or the credit standing or ability of a com-
petitor to perform any work or manufacture or produce any product,
or to the conditions of employment among the employees of a
competitor.
8. No member of the industry shall ship handkerchiefs which do
not conform substantially in quality and value to the sample sub-
mitted or to the representations made prior to securing the order,
except, with the knowledge and consent of the purchaser.
9. No member of the industry shall make any sale or contract of
sale of any handkerchief under any description which does not sub-
stantially describe such article in terms customarily used in the
industry.
10. No member of the industry shall use any work, name, label, or
brand indicating a place or country or origin or type of a handker-
chief, associated in the trade with a place or country or origin, except
as to articles actually made in said place or country of origin.
11. No member of the industry shall maliciously induce or attempt
to induce the breach of an existing oral or written contract between
a competitor and his customer or source of supply, or interfere with
or obstruct the performance of any such contractual duties or
services.
12. No member of the industry shall willfully aid or abet another
member of the industry to commit any unfair practice.
13. No member of the industry shall accept from a purchasing
agent or purchasing agency any order for merchandise designated for
or addressed to the account of another member of the industry with-
out the knowledge and consent of such other member of the industry.
14. No member of the industry shall use the word Hand Rolled
Hem to designate that class of handmade hem known as Whipped
Edge", which latter term means any hem or edge on which the
See footnote, p. 1.







thread used to fasten same is whipped or looped around and encloses
the entire rolled edge.
15. No member of the industry shall falsely mark or brand any
product of the industry with the tendency to mislead or deceive
customers or prospective customers as to the grade, quality, quantity,
substance, character, nature, origin, size, finish or preparation of any
product of the industry, or otherwise.
16. No member of the industry shall make or cause to be made
or knowingly permit to be made or published any false, materially
inaccurate, or deceptive statement by way of advertisement or other-
wise, concerning the grade, quality, quantity, substance, character,
nature, origin, size, finish or preparation of any product of the in-
dustry, having the tendency or capacity to mislead or deceive pur-
chasers or prospective purchasers.
17. All specifications as to size of handkerchief, count of cloth
type of cloth, whether combed or carded, as well as the number o?
stitches on the hem, shall be in substantial conformity with samples
or specifications submitted by seller to buyer. There shall be a
reasonable tolerance for variations resulting from the manufactur-
ing processes. All shipments of handkerchiefs embellished with
initials or other embroidery shall conform to types as specified,
whether hand-machine or so-called hand-loom embroidery" or
Schiffli machine embroidery or all-hand embroidery. Misrepresenta-
tion of type or methods of process of embroidery is prohibited.
Substitution of one type of embroidery for another is likewise pro-
hibited. The designation of linen qualities by Counts or Setts is not
permissible, unless such Counts or Setts contain the standard num-
ber of threads to the square inch and unless the yarn numbers in
such Counts or Setts are those generally used in the Irish Linen
Industry in the weaving of such Counts or Setts and are recognized
by the Irish Linen Weaving Industry as standard.
18. Samples shall be furnished at the same price as the merchan-
dise, if said samples are made in accordance with the seller's make-
up. No member of the industry shall absorb any part of any in-
crease in the cost incurred by the seller for samples other than those
of his usual make-up. Samples shall be given to purchasers or re-
tailers only when accompanied by a stock order based upon the said
samples.
19. (a) If the Administrator, after investigation, shall at any time
find both (1) that an emergency has arisen within. the industry ad-
versely affecting small enterprises or wages or labor condition, or
tending toward monopoly or other acute conditions which tend to
defeat the purposes of the Act; and (2) that the determination of a
stated minimum price for a specified product within the industry for
a limited period is necessary to mitigate the conditions constituting
such emergency and to effectuate the purposes of the Act, the Code
Authority may cause an impartial agency to investigate costs and to
recommend to the Administrator a determination of a stated mini-
mum price of the product affected by the emergency and thereupon
the Administrator nay proceed to determine such stated minimum
price.
(b) When the Adm.inistrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of such








emergency and to effectuate the purposes of the National Industrial
Recovery Act, he shall establish such price. Thereafter, during such
stated period, no member of the industry shall sell such specified
products at a net realized price below said stated miinimum, price and
any such sale shall be deemed destructive pIrice cutting. From time
to time, the Code Authority may recommend review or reconsidera-
tion or the Administrator may cause any determinations hcreunder
to be reviewed or reconsidered and appropriate action taken.'
20. Nothing in this Code shall limit the effect of any adjudica-
tion by the Courts or holding by the Federal Trade Commission
on complaint, finding, and order, that any practice or method is
unfair, providing that such adjudication or holding is not incon-
sistent with any provision of the Act, or this Code.
21. No member of the Industry shall deviate from the price fixed
by a contract. All contracts and/or orders shall be binding in
accordance with the provisions thereof.2
22. No -member of the Industry shall accept the attempted cancel-
lation of a contract, where the effect of such cancellation would be
to circumvent any provisions of this Code.2
23. No member of the Industry shall ship merchandise on consign-
ment or memoranldum.l
24. No mmtuber of the Industry shall procure or attempt to pro-
cure, any information concerning the business of another .ne-irber
which is properly regarded by such member as a trade secret or
confidential within its organization (except on consent of such
member)."
25. Yo member of the Industry shall pack handkerchiefs not of
first quality in sealed cartons or envelopes or in any other sealed
containers so that the whole or part of the handkerchief is not easily
accessible for c'amination unless said individual containers are
clearly marked "' seconds or otherwise appropriately designated as
containing merchandise other than firsts ".2
26. (a) Wlhen the basic fabric from which a handkerchief is manu-
factured, embodies in either the warp or the filling, or both, more
than. one kind of yarn, 'no matter from what fibre or filaments the
yarn may be spun, the handkerchief manufactured from such fabric
shall not be labelled or by any form. of phraseology be designated or
referred to by the name of any one only of the component fibres or
filaments, untes. such component constitutes by thread count 80% of
the fabric, and provided further, that unless the fabric is genuinely
100% of any fibre or filanment designation (linen, cotton, silk, rayon,
etc.) exclusive of regular selvage, except as hereinafter provided for
fancy woven materials, the actual percentage by thread count of any
component of at least 60% and which is less than 100%, shall be
prominently indicated on any label or ticket identifying the hand-
kerchiefs manufactured from such fabric.
In the case of fancy woven materials, in. which the warp and the
filling of the plain weave are made from yarns of the same fibre,
whether the fancy elements are plain corded or fancy borders, or all-
over effects, such as checks or plaids, and are made of yarns of other
'Italicized words added by Amendment No. 1, approved Oct. 3, 1934.
'See footnote, p. 1.







fibres or laments, only the true fabric name of the plain weave may
be designated, if only one fibre clement is specified on the label.
The above prohibitions shall not apply to merchandise delivered
on or before December 31st, 1934, provided that Sections 18 and 19
of this Article are not violated.
(b) The elements used for appliques, embroidered embellishments,
lace corners, lace edges, or any material attached in any way to com-
plete the handkerchiefs, shall not be cons-idered as affecting the true
designation of the basic materials as herein specified.
(c) No member of the Industry shall use labels, the wording of
which emphasizes in any manner a minor element in the manufacture,
construction or finish of the handkei chief fabric, or in the processing
or embellishment of the handkerchief itself, which descriptive word-
ing may have a tendency to induce a purchaser to believe that the
said wording applies to the handkerchief as a whole or to the basic
fabric referred to in paragraph marked '" a of this Section.
(d) No member of the Industry shall so label handkerchiefs,
specially or othe-rwise, at the request of any purchaser or purchasing
agency as to in any way conflict with the provisions. of this Section."
2i'. No member of the Industry shall, in sa.plinrg fancy white
satin. strips or prints, or white cords, or colored cords, or colored
woven borders, insert samples in sample folders so as to conceal from.
the prospective cs.tsomers the fact that one side of the handkerchief
is raw selvage, unstitched, unless a conspicuous label or marking of
some kind is placed on the handkerchief indicating that only three
sides of the handkerchief are hemmed.2
2S. The Code Authority shall create, subject to the approval of the
National Industrial Recovery Board, appropriate regulations and
facilities for the registration of new or original styles, designs or
patterns of handkerchiefs. Upon. the creation of such regulations
and facilities and upon the approval thereof by the National Indus-
trial Recovery Board, no member of the Industry other than the
registering member shall manufacture or cause to be manufactured
any handkerchiefs incorporating any such. new or original styles, de-
signs, or patterns as may be registered as hereinabove provided,
except upon the written consent of the registering member.2

ARTICLE VIII-TERMS OF SALE
Maximum terms of sale for this Industry shall be-
1. Net cash ten (10) days; or with an equalizing differential in the
price, two per cent (2 t) ten (10) days-sixty (60) extra; or two
and one-half per cent (2.,%.) ten (10) days-thirty (30) extra; or
three per cent (3c.) ten (10) days; or C. 0. D. three per cent (3%).
The cash*discounts as outlined in this Section shall be interpreted
as maximum discounts allo('ed under this Article. Members of the
Industry shall be pe'in;tted to sell at te ms other than those speci-
fically stated in this Article, provided, however, that such terms shall
not be more adean1/aeous or more liberal than those terms specified
in this Ar';cle, and further, that such dating shall not in any case
exceed seventy (70) days from date of billing of merchandise to the
buyer, and further, that in no case shall the cash discount be in
excess of three per cent (3% ).2
2See footnote, p. 1.








2. All the above terms shall be effective from date of invoice or
of shipment, whichever may be earlier.
3. Extra dating is expressly prohibited.
4. The terms for the members of the industry described in Sec-
tion 2 (b) of Article II shall be net cash within ten (10) days.
5. No member of the Industry shall allow discount if bill is not
paid within fifteen (15) days of due date at the office at which the
account is due and payable.2
6. Members of the industry shall charge legal interest on all past
due accounts, which charge shall accrue at maturity of bill plus five
days grace.
7. No member of the industry shall allow anticipation exceeding
six percent (6%) per annum.
8. No member of the industry shall violate any of the provisions
of this Article, directly or indirectly, either by false bookkeeping
methods or otherwise.
9. All shipments shall be F.O.B. point of origin, except that ship-
ments of packaged, trade-marked handkerchiefs distributed directly
to the retailer by the manufacturer may be F.O.B. destination. The
term "packaged, trade-marked handkerchiefs as used herein, shall
mean and include one (1), two (2), or three (3) handkerchiefs com-
pletely encased in a carton or sealed envelope wrap, which carton
or wrap bears thereon the trade-mark of the member of the Industry
and a suggested retail price."
10. No member of the Industry shall give any discounts except
as provided in this Article whether in the nature of trade discounts or
increased cash discounts and whether arrived at by increasing the
gross selling price or in any other manner.2
11. The seller shall designate the terms of payment under which
his merchandise shall be sold in accordance with Section 1 of this
Article.2
12. A member of the Industry may bill merchandise shipped on or
after the 25th of the month as of the first of the following month.2

ARTICLE IX-NRA LABELS
1. Hereafter, the Code Authority may apply to the National In-
dustrial Recovery Board for grant of the necessary authority and
exclusive right to issue and sell NRA labels, or authorized substitutes
therefore, to members of the Industry; and, upon the issuance of ap-
propriate orders by the National Industrial Recovery Board, under
powers vested in it by Executive Orders of the President, including
Executive Order No. 6859 and otherwise, the Code Authority shall
have the exclusive right in this Industry to issue and sell said labels
or said authorized substitutes to the members of said Industry; and
thereafter all merchandise manufactured subject to the provisions of
this Code shall bear on the carton containing such merchandise, or
in such other place as the Code Authority, subject to review by the
National Industrial Recovery Board, may designate, an NRA label,
or an authorized substitute therefore, to symbolize to purchasers of
said merchandise the conditions under which it has been manu-
factured.2
'See footnote, p. 1.







2. The issuance and sale of said labels, and/or of said authorized
substitutes, shall be governed by the following rules and regulations,
and such other rules and regulations as may hereafter be issued or
approved by the National Industrial Recovery Board:
(a) Each label shall bear a registration number or numbers es-
pecially assigned to each member of the industry by the Code Au-
thority, or a serial number, and shall remain, attached to all such
me rclhandise when sold to the retail distributor.
(b) Any and all members of the Industry may apply to the Code
Authority for a permit to use such NRA label, which permit shall
be granted to them only if and so long as they cor.ply with this
Code.
(c) For the purpose of ascertaining the right of members of the
Industry to the continued use of labels and of protecting purchasers
of merchandise bearing such labels and of insuring to each individual
member of the Industry that the symbolism of such label will be
maintained by virtue of comp;,lance with the provisions of this Code
by all members of the Industry using said label, the Code Authority
shall establish rules and regulations and appropriate machinery for
the issuance of labels and the inspection, examination and supervi-
sion of the practices of members of the Industry.
(d) The charge made for such labels by the Code Authority shall
be subject to the oppro-val of the National Industrial Recovery Board.
(e) The application of the provisions of this Article ard the rules
and regulations gov earning the issuance and use of said labels shall
at all times be subject to rules and regulations issued by the National
Industrial Recovery Board.2

ARTICLE X
1. Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing, and shall be
free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives
or in self-organization or in other concerted activities for the pur-
pose of collective bargaining or other mutual aid or protection.
2. 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.
3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President..
4. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sion of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order
approval, license, rule, or regulation issued under Title I of said
Act and specifically, but without limitation, to the right of the
President to cancel or modify his approval of this Code or any condi-
tions imposed by him upon his approval thereof.
5. Within each state, no provision of this Code shall supersede
any laws of such state imposing more stringent requirements, regu-
2 See footnote, p. 1.








Hinting the age of employees, wages, hours of work, or health, fire,
or general working conditions, than under this Code.
6. No member of the industry shall manufacture, or cause to be
manufactured, any handkerchiefs, in whole or in part, in any prison,
prison camp,. penitentiary, reformatory, or other penal institution,
or in any place by means of prison labor.
7. No work shall be done or be permitted to be done in any base-
ments, unsanitary buildings, buildings unsafe on account of fire
risks, or otherwise dangerous. In any state in which buildings used
in the industry, including dwellings, are subject to inspection by the
Department of Labor of such state, or of the Government ol the
United States, no work shall be done in such buildings or dwellings
without the provisions relating to such inspection having first been
complied with, and proof of such compliance having been supplied
to the Code Authority.
8. Any employer who at any time shall manufacture any article
or articles subject to the provisions of this Code, shall be bound by
all the provisions of this Code as to all employees engaged in whole
or in part in such manufacture. In case any employee shall be en-
gaged partly in such manufacture and partly in the manufacture of
goods of another character, this Code shall apply to such portion
of such employee's time as is applied to the manufacture of articles
subject to this Code.
9. No provision of this Code shall be so applied as to permit
monopolies, or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.
10. All members of the Industry shall post and keep posted in a
conspicuous place accessible to employees complete copies of this
Code. In addition to the foregoing complete copies of all labor
provisions of this Code together with any necessary interpretations
shall be placed in a conspicuous place on each factory floor and in all
places of business other than the factory where three or more persons
are employed. Such posted copies of the labor provisions of this
Code and of the said interpretations shall be in English and/or in
any other necessary language or languages.2
11. The Handkerchief Industry approves the practice of handling
disputes between its members, between members and their customers,
and between members and those from whom they purchase, in a fair
and reasonable manner coupled with a spirit of moderation and
good will, and every effort should be made by the disputants them-
selves to arrive at an agreement. In the event that they are unable
to agree, the dispute should be settled by arbitration as provided by
the American Arbitration Society.
12. Every employer shall provide for the safety and health of em-
ployees during the hours and at the places of their employment.
Standards of safety and health shall be submitted by the Code Au-
thority to the National Industrial Recovery Board within three (3)
months after the effective date of this amendment.2
Approved Code No. 53.
Registry No. 237-1-01.
a See footnote, p. 1.













Approved Code No. 53-Amendment No. 1


AMENDMENT TO CODE OF FAIR COMPETITION
FOR THE

HANDKERCHIEF INDUSTRY

As Approved on October 3, 1934


ORDER

APPROVING AMENDMENT TO THE CODE OF FAIR COMPETITION FOR THE
HANDKERCHIEF INDUSTRY
An application having been made pursuant to and in full compli-
ance with the provisions of Title I of the National Industrial Re-
covery Act, approved June 16, 1933, for approval of an amendment
to the Code of Fair Competition for the Handkerchief Industry
and hearings having been duly held thereon and the annexed report
on said amendment, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President, we, the Na-
tional Industrial Recovery Board, pursuant to authority vested in
us by Executive Orders of the President, do hereby incorporate by
reference, said annexed report and do find that said amendment and
the Code as constituted after being amended comply in all respects
with the pertinent provisions and will promote the policies and pur-
poses of said Title of said Act, and do hereby order that said
amendment be and it is hereby approved, and that the previous
approval of said Code is hereby modified to include an approval of
said Code in its entirety as amended.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officer.
Approval recommended:
PRENTISS L. COONLEY,
Acting Division Admnristrator.
WASHINGTON, D. C.
October 3, 1934.
NoTE.-This order approves changes in Article VIII of the code. See p. 14.
(18)












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
Sin: An application has been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act for certain amendments to the Code of Fair Competi-
tion for the Handkerchief Industry, and Hearings were conducted
on said proposed amendments in Washington on April 18, 1934.
The amendment to Article VI, Section 4(m) makes each member
of the Industry liable for his or its equitable contribution to the
expenses of the maintainence of the Code Authority, and the amend-
ment, to Article VIII, Section 19 provides that, under certain cir-
cumstances, an emergency may be declared to exist in the Industry,
and that, in such event, stated minimum prices for the products of
the Industry may be prescribed for a limited time. Both amend-
ments are standard in form and content.
The Deputy Administrator in his final report to me on said amend-
ments to said Code having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) The amendment to said Code and said Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act, including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof; and will provide for the general
welfare by promoting the organization of Industry for the purpose
of cooperative action among trade groups, by inducing and maintain-
ing united action of labor and management under adequate govern-
mental sanction and supervision, by eliminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (except as may be temporarily required), by increasing
the consumption of industrial and agricultural products through
increasing purchasing power, by reducing and relieving unemploy-
ment, by improving standards of labor, and by otherwise
rehabilitating industry.
(b) The Code as amended complies in all respects with the per-
tinent provisions of said Title of said Act, including but without
limitations Subsection (a) of Section 3, Subsection (a) of Section
7, and Subsection (b) of Section 10 thereof.
(c) The Handkerchief Industry Association, Inc. was and is an
industrial association truly representative of the aforesaid Industry
and that said association imposed and imposes no inequitable res-
strictions on admission to membership therein and has applied for
and consents to this amendment.
(19)





20

(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
amendment.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officer.
OCTOBER 3, 1934.












Approved Code No. 53-Amendment No. 2


AMENDMENT TO CODE OF FAIR COMPETITION
FOR THE

HANDKERCHIEF INDUSTRY

As Approved on October 31, 1934


ORDER

APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
HANDKERCHIEF INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of amend-
ments to the Code of Fair Competition for the Handkerchief
Industry, and hearings having been duly held thereon and the
annexed report on said amendments containing findings with respect
thereto, having been made and directed to the President:
NOW. THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise; does hereby incorporate,
by reference, said annexed report and does find that said amend-
ments and the Code as constituted after being amended comply in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act, and does hereby order that
said amendments be and they are hereby approved, and that the
previous approval of said Code is hereby amended to include an
approval of said Code in its entirety as amended; and
ORDERS, FURTHER, that there shall be created forthwith a
Special Commission composed of three members, one of whom shall
be nominated by the Labor Advisory Board of the National Recovery
Administration, one by the Division Administrator of the Textiles
Division of the National Recovery Administration, and one by the
Code Authority for the Handkerchief Industry. Said Commission
shall study and investigate the production of handkerchiefs by means
of hand sewing and hand embellishment in the home, and shall sub-
mit to the National Industrial Recovery Board, within forty (40)
days from the date hereof, a report containing findings with recom-
mendations for minimum piece work and/or hourly rates for hand
sewing and hand embellishment in the home, which recommendations,
upon the approval of the National Industrial Recovery Board, shall
become effective as part of this Code. Pending the report of said
(21)





22

Commission and the approval of any recommendations thereof by
the National Industrial Recovery Board, the provisions of Section
8 .(a) of Article IV, of said Code, as amended, shall be stayed, in-
sofar as the provisions of said Section may apply to hand sewing
and hand embellishment in the home.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYCH, Administrative Officer.
Approval recommended:
PRENTISS L. COONLEY,
Acting Division Administrator.
WASHINGTON, D. C.,
October 31, 1934.
NoTa.-This order approves changes in articles II, II, IV, V, VI, VII. VIII, IX, and X.
See pp. 1, 2, 3, 5, 10, 14, 15, and 16.











REPORT TO THE PRESIDENT


The PRESENT,
The Wite House.
Sm: An application has been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act for certain amendments to the Code of Fair Competi-
tion for the Handkerchief Industry, and Hearings were conducted on
said proposed amendments in Washington on April 18, 1934.
The original Code of Fair Competition for the Handkerchief In-
dustry was approved October 9, 1933. The proposed amendments
are the result of close observation of the Code in actual operation.
Generally speaking, the amendments constitute no considerable modi-
fication of the provisions of the original Code; they seek merely to
eliminate certain inequalities, to close up certain loopholes which
have become apparent, to assist in enforcement, and to facilitate ad-
ministration. Such additions to the original Code as are made herein
involve, primarily, trade practice provisions, which, in practically
every case, were referred to in the original Code as subjects upon
which the Code Authority was to study and make recommendations.
The primary object of this set of amendments is to consolidate the
gains achieved by the original Code and to go a little further toward
placing competition in this Industry on a sound and rational basis.
The Deputy Administrator in his final report to the National In-
dustrial Recovery Board on said amendments to said Code having
found as herein set forth and on the basis of all the proceedings in
this matter:
The National Industrial Recovery Board finds that:
(a) The amendments to said Code and said Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act, including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof; and will provide for the general wel-
fare by promoting the organization of Industry for the purpose of
cooperative action among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present pro-
ductive capacity of industries, by avoiding undue restriction of pro-
duction (except as may be temporarily required). by increasing the
consumption of industrial and agricultural products through in-
creasing purchasing power, by reducing and relieving unemployment,
by improving standards of labor, and by otherwise rehabilitating
industry.
(b) The Code as amended complies in all respects with the
pertinent provisions of said Title of said Act, including but without
limitations Subsection (a) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof.
(23)




UNIVERSITY OF FLORIDA
III ll IAIlAIRlYlA 1 Rr11111111 A All Jl11 ll
24 3 1262 08486 8164
(c) The Handkerchief Industry Association, Inc. was and is an
industrial association truly representative of the aforesaid Industry
and that said association imposed and imposes no inequitable restric-
tions on admission to membership therein and has applied for and
consents to this amendment.
(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of
said amendment.
For The National Industrial Recovery Board:
G. A. LYNcH,
Administrative Officer.
OroBER 31, 1934.




Full Text

PAGE 1

Approved Code No. 53-Reprint Mar. 27, 1935 Registry No. 237-1-01 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR TH-E HANDKERCHIEF INDUSTRY AS APPROVED ON OCTOBER 9, 1933 BY PRESIDENT ROOSEVELT INCLUDES AMENDMENTS NOS. 1 AND 2 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1935 For sale by the Superintendent of Documents, Washington, D . C . -----Prfee 5 een ts

PAGE 2

This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D. C., and by the following N. R. A. offices: Atlanta, Ga.: 625 Citizens & Southern National Bank Building. Baltimore, Md. : 130 Customhouse. Birmingham, Ala.: 201 Liberty National Life Building. Boston, Mass. : Room 1200, 80 Federal Street. Buffalo, N. Y.: 219 White Building. Chicago, lll.: Room 204, 400 North Michigan Avenue. Cl eveland, Ohio : 520 Bulkley Building. Dallas , Tex. : 1212 R epublic Bank Building. Detroit, Mich.: 415 N e w Federal Building . Houston, Tex. : 403 Milam Building. Jacksonville, Fla.: 425 United States Courthouse and Post Office Building . Los Angeles, Calif. : 751 Figueroa Street, South. Louisville, Ky.: 408 F ederal Building. Minneapolis, Minn. : 900 Roanoke Building. Nashville, Tenn.: 415 Cotton States Building. Newark, N. J. : 434 Industrial Office Building, 1060 Broad Street. New Orleans. La.: 214 Customhouse. New York, N. Y.: 45 Broadway. Oklahoma City, Okla.: 427 Commerce Exchange Building. Philadelphia, Pa. : 933 Commercial Trus t Building. Pittsburgh, Pa.: 401 Law and Finance Building. Portland, Oreg. : 407 Park Building. Providence, R. I.: National Exchange Bank Building, 17 Exchange Street. St. Louis, Mo.: Suite 1220, 506 Olive Street. San Francisco, Calif. : Humbolt B ank Building, 785 Market Street. Seattle, Wash.: 1730 Exchange Building. (II)

PAGE 3

.. Approved Code No. 53 APPROVED CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF INDUSTRY As Approved on October 9, 1933 BY PRESIDENT ROOSEVELT EXECUTIVE ORDER CoDE OF FAIR CoMPETITION FOR THE HANDKERCHIEF 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 o:f Fair Competition for the Handkerchief 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 Competition complies in all respects with the pertinent provisions of Title I of the 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 Ad1ninistrator and do order that the said Code of Fair Competition be and it is hereby approved. The WHITE HousE, October 9, 1933. Approval recommended: HuGHS. JoHNsoN. 124920----1603-118----35 FRANKLIN D. ROOSEVELT. (Ill)

PAGE 4

REPORT TO THE PRESIDENT OcTOBER 4, 1933. The PRESIDENT, The White House. MY DEAR MR. PRESIDENT: I have the honor to submit and recommend for your approval, the Code of Fair Competition for the Handkerchief Industry. The Code has been approved by the Labor Advisory Board, the Consumers Advisory Board, and the Industrial Advisory Board. An analysis of the provisions of the Code has been made by the Administration; and a complete report is being transmitted to you. I find that the Code complies with the requirements of clauses 1 and 2, subsection (a) of Section 3 of the National Industrial Recovery Act. I am, my dear Mr. President, Very sincerely yours, Enclosure. (IV) HuoH S. JoHNSON, Administrator.

PAGE 5

CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF INDUSTRY ARTICLE I T o effectuate the po l icies of Title I of the National Industrial R ecovery Act, the following provisions are submitted as a Code of Fair Competition for the Handkerchief Industry, and shall be the standard of fair competition f or this industry and shall be bind ing upon ever y membe r o f t h e industry. ARTICLE II-DEFINITIONS 1 . The term " Industry" as used h erein 'means and includes the manufactuTe and/ or production of handkerchie fs, in whol e or in part, by hand or machine, including embellishing andjor finishing by hand or by nwchine, and the sale thereof within the cor1jines oj th . e Continental United State s by any manufacturer, p1oducer or importe r or by any firm, corporation or a n y oth er for?n of enterprise totally or partly owned or directly or indi? ectly cont1olled by any rnanufactU? er , producer or in1port er of handkerchie fs. The t erm shall not include, howe ' ver, the embellishing of handker chi e fs by Schiffli e mbroidery 1nachines, so-called " handlo01n" ?nacltines and socalled " hand-embroidery" rnachines, no r shall it indude the manufacture in whole or in part of handke rchiefs in Puerto Rico. The tern1 as used h erein shall, howe n, rnean and include the sale within the Continental United States of hand kerchie fs manufactured in whole or in part in Pue1•to Rico or else ' U h ere outsid e the confines of the Continental Unite d State s .2 92. The term "mernber of the industry" as used herein shaU includ e : (a) Handkerchief manufacturers who own or op erate their plants and whose production is sold, in whole or in part, directly by thern or through salesmen, agents, or representati ve s, to the wholesale o1 rctail trades; (b) Handker chief manufacturers owning plants or op eratin g ' plants exc lusively on a contract basis for others, in whole or in part engaged in the production or finishing of handkerchi e fs. (c) Those who purchase materials and have sanw fabricat e d into handkerchiefs, plain or embellished, by contractors, agents, sub ag en ts, or individuals within the confines of the United States o1 its possessions or territories; (d) Those engaged in wholesal e distribution who further the vfacture of handkerchiefs by any of the following nwnufacturing 1> rocesses, but without limitation: cutting, stitching, ironing, foldi ng, pressing, tying, packaging, bowing, ernbellishing, or oth erwise finishing . 2 Italicized words added by Amendment No. 2, approved Oct. 31, 1934. ( 1 )

PAGE 6

2 (e) Those engaged in the Handkerchief Industry under more than one of the above classifications, or oth erwise en gaged exclusively or in part as employers or on their own behalf.2 3. The term "employee" as used herein includes any person engaged in any phase of the industry, in any capacity, receiving compensation for his services, irrespective of the nature or method of compensation. 4. The term " employer " as used herein inc,ludes any one for whose benefit or on whose business such an employee is engaged. 5. The term "Southern Section of the United States" as used herein shall include the States of Alabama, Florida, Georgia, 1\:entucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia. 6. The terms "President", "Administrator", and "Act", as used herein, shall mean respectively, the President of the United States, the Administrator of the National Recovery Administration or his du.ly authorized Deputy, and the National Industrial Recovery Act. 7. The term "effective date" as used herein shall mean and this Code shall become effective on the tenth (lOth) day after this Code sha.ll have been approved by the President of the United States. ARTICLE III-HoURs OF LABOR 1. Except as hereinafter provided, no employee shall work, or be permitted to work, in excess of eight (8) hours in any twenty-four ( 24) hour period, or in excess of forty ( 40) hours in any one week. Overtime is expressly prohibited, except as hereinafter provided. 2. No member of the industry shall operate any machine employed in the manufacture or embellishment of handkerchiefs, whether operated by power or by hand, on a schedule of more than one shift of forty ( 40) hours in any one week, except that, for a limited time or times, due to emergency arising through accident or similar cause, the Code Authority may, upon the express approval of the Administrator, authorize the operation of machines for more than forty ( 40) hours per week. 3. Members of shipping crews sha.ll not work, or be permitted to work, in excess of forty (40) hours in any one week or more than eight (8) hours in any twenty-four (24) hour period, except that snch employees 1nay be permitted to work forty-eight ( 48) hours per week during a maximum of sixteen (16) weeks in any calendar year, provided, that for any and all such overtime work, such employees shall be paid at not less than the hourly rate payable to them for the regular forty ( 40) hour week. 4. Members of repair-shop crews, machinists, electricians, and drivers shal,l not work, or be permitted to work, in excess of fortyfive ( 45) hours in any one week, except that persons employed in such capacities may be employed in excess of this schedule in caE:.e of emergency arising through accident or similar cause. Overtime shall be paid for at not less than the regular hourly rate for such employee. 5. No employee shall work or be permitted to work for a total number of hours in exce s of the number of hours prescribed for each week and day, whether employed by one or more employers. 11 See footnote, p. 1.

PAGE 7

3 6. The provisions of this Article shall have no reference to mem bers of outside sales force or to watchmen. 7. The provisions of this Article shall have no reference to execu tives, or to persons in administrative or supervisory capacities, or to engineers or firemen, provided such persons reoeive not less than twenty-five dol,lars ($25.00) per week. 8. The provisions of this Article shall not apply to manufacturing operations carried on outside the Continental portion of the United States. 9. No employee slwll work or be permitted to w1ork in any factory on any Saturday or Sunday except such employees for wh(}m specific provision is made in this Section and in Sections 6 and 'l of this Article. However, for the sole purpose of dampening handkerchiefs in order that work may be ready for the ironing crew the following Monday morning, not more than four (4) employees in any one (1) plant shall be permitted to work on Satwrday. No such employees shall be permitted to work in any case in excess of forty (40) ho urs in any one (1) week, including the hours that have b een wo 'rked by such employee on the Saturday of said week. In any week in which a legal or religious holiday occu rs the Code Authority 1nay permit work to be done on a Saturday of such week.2 10. Except as herein provided no work shall be done in any factory except between the hours of 8 A. M. and noon and b etween the lwurs of 1 P. M. and 5 P. Jl! . In the event, however, that all or a majority of factories in any particular city or area request a change from the standard hours herein above set forth, the Code Authority, subject to the disapproval of the National Industrial Recovery Board, may modify the standard hours for such city or area. In ?tO case slwll the lunch period be l ess than one hour and Vn, no case shall such standard hours exceed 8 hours per day.2 ARTICLE IV-WAGES 1. Except as hereinafter provide d, no employee in any section of the United States other than the Southern Section as defined in Section 5 of Article II, of this Code, shall be paid at less than the rate of thirteen ( $13.00) do.llars per week of forty (40) hours nor t5hall any employee engaged in the Soutltern Section of the United States be paid at less than the rate of twelve dollars per week of forty (40) hottrs. No member of the industry shall make any deduction fr(}m the of any employee b ecause of spoilage or because of the infraction of any rule where the e ffect of such deduction wou.ld be to 1'educe the net weekly wage of any such employee to less than the minimum wages provided herein. Each member of the industry shall maintain accurate payroll records ( records of hours worked) and shall su ,bmit re ports based thereon at four weekly intervals to the Confidential A.gency.2 2. In the event that the differentials herein provided between the Southern and other sections of the United States result in an unfair disadvantage to any section, the Administrator either on the recommendation of the Code Authority or at his own instance, make 11 See footnote, p. 1.

PAGE 8

4 such wage readjustments as may be necessary to maintain the proper competitive relationship between sections of the country. 3. Each 1nember of the industry s hall file with the Confidential Agency of the Code Authority duly certified schedules of rates of J->ay fo r piecework production for each type of standard ope1ation in forc e in his plant (including ho1nework, if any and where per1nissible), and shall advise said Agency of any change or alt era tion 'which nwy at any ti1ne b e 1nade in such schedules. Said Confidential Agency shall report to the Code Authority, under k ey nwmbers, all such schedules, in order that the Code Authority may be kept in formed as to the observance or nonobservance of this Code. Unless ord ered by the Nationallnd' ustrial Recov ery Board, said Confidential Agency shall in no case disclose the na1ne of anyone to whom any key nu1nber may hav e reference.2 4. No learner engaged in the actual manufacture of handkerchiefs shall be paid at le s s than the rate of nine dollars ($9.00) per week of forty ( 40) hours. A person shall be deemed a learner for no more than eight (8) weeks. Any time worked by a learner shal. l be deemed a part of his learning period, whether such time is worked continuously or in more than one shop or for more than one employer. The number of learners in any one plant at any operation shall not exceed ten per cent (10 % ) of the total number of employees engaged in said operation in said plant. 5. The wage rates for occupations other than those receiving the minimum wage herein prescribed, shall at least maintain the differ ence in earning for those occupations for a full-time week existing on July 1, 1933; provided, however, that these rates shall be subject to reconsideration for adjustment by the Code Authority and by the Administrator. Subject to review by the Code Authority and by the Administrator, no employer shall reduce the weekly compensation for employment now in excess of the minimum wages hereby agreed to, notwithstanding that the hours worked in such employment may hereby be reduced. 6. No employee shall be paid le ss than the minimum rate of wages set forth in this Article regardless of whether such employee is compensated on a time-rate or piece-rate basis. 7. A p erson whose earning capacity is limited because of age, physical or mental handicap, or other infirmity, may be e ' rnployed on light work at a wage b elo1v the esta blished by this Code, if the employer obtains from the State Authority designated by the United States D epartment of Labor, a certificate authorizing such person's employmen t at such wages and for such hours as shall be stat ed in the certificate. Such Authority shall b e guided by the in ::;tructions of the United States D epartment of Labor in issuing certificates to such person. Each employer shall file monthly, with the Code Authority a list of all such persons employed by him, sho'Lving the wages paid to, and the nwxi11wm hours of work fm such employee.2 8. (a) E xcept as h ereina fter provided, no 1ne1nber of the industry shall manufacture or finish or cause to be m , anufactured or finished any handk erchie f by means of home labor, except that handkerchiefs made entirely by hand 1nay be manufactured at home.1a 2 See footnote, p. 1. la Temporarily stayed. (See order approving this amendment, p. 18.)

PAGE 9

5 (b) Anything to the contrary herein notwithstanding, a p ers on 1nay be perrn.titted to engage in homew01k at the same rate of wages as is paid for the same type of w01k performe d in the factory or other regular place of business if a home-1-00rker's certificate is (lbtained from the State Authority or other officer designat e d by the United State s D epart1nent of Labor, such c e rtificate to be granted in accordance with instructions issued by the United States D epartmen t of Lab or, provided {1) Such person is physically incapacitated for work in a factory or other regular place of business and is free from any co11.iagiott-S diseas e; or (2) Sttch person is unable to leave home because his or h er services are absolutely essentia l for attendance on a p ers on who is b ed'ridde n or an invalid and both such p ersons are free f rom any contagious disease, or because of the necessity of caring for 1ninor childr en or dep enden ts unable to leav e h01ne. Any e1nployer engaging such a p e rson shall keep such certificate on fil e and shall fil e with the Code Authority the name and address of each worker so certifi ed.2 9. The provisions of this article shall not apply to manufacturing operations carried on outside the Continental portion of the United States. ARTICLE V-MINIMUM AGE 1. No p ers on under sixteen (16) y e ars of age shall be ernploye d in the Indtt8try. In the even t of a claim , of alleged violation of this section, an employer shall be deemed to hav e complied with the p1'0-' Visions of this section if he shall ha ve on file and maklf3 available for inspection by the Confidential Agency a certificate of age i._r.;sued by the duly authorized department of the State in which the employe? operat e s, showing the age of the em,ployee at the ti1ne of entering S?-tch employment to be no l ess than the age required by thi8 sif3ction. 2 ARTICLE VI-ADMINISTRATION 1. To further e ff ectuate the purposes of the Act, a Code Authority is her eby constituted to cooperate with the N ationaZ Industrial Recovery Board in the Administration of the Code . Said Cod e Authority shall consist of not 1nore than thirteen (13) mernbers to be e lected in the manner h ereinafter set forth: (a) Nine (9) members and two (2) alternates shall be appointed by the Board of Dire ctors of the Handkerc h ie f Industry Association, Inc. (b) One {1) nw1nber shall b e appointed by the National Industrial R e covery Board on the n01nination of the Labor Advisor y Board of the National R ecovery Administration. (c) In addition to the fo regoing, the National Industrial Recov ery Board may appoint not rnore than three ( 3 ) me1nb er s without vote to represent the National Industrial Reco ve1'Y Boar d and or such groups or inte1ests as it may d esi gnat e .2 2. In order that the Code Authority shall at all times be truly representative of the industry and in other respects comply with , See footnote, p. 1. 124920--1603-118----35----2

PAGE 10

6 the provisions of the Act, the Administrator may provide such hearings as he may deem proper; and thereafter if he shall find that the Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Code Authority. 3. Each trade or industrial association participating in the selection or activities of the Code Authority shal,l: (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. 4. If the National Industrial Recovery Board shall at any time d ete rmine that a;ny action of the Code Authority or any agency thereof may be unfair or unjust or oontrary to the public inte1•est, the National Industrial Recov ery Board may require that such action be suspended to afford an opportunity for i1VVestigation of the merits of each action and further consid er ation by the Code Authority or agency p ending final action which shall not be effective unless the National I ndust1'ial Recovery Board approves or unless it shall fail to disapprov e after thirty ( 30) days' notice to it of inten tion to pro ceed with such action in its original or modified form.2 5. Subject to such rules and regulations as rnay be issued by the National Industrial Recovery Board, the Code Authority shall have the following pow ers and duties, in addition to those authorized by uther provisions of the Cod e . (a) To incorporate itself, the Code Authority rnay incorporate under the latus of any State of the United States or of the District of Columbia, such corporation to be not for profit and to be known as "The Handkerchie f Industry Code Authority"/ provided that the pow ers , duties, objects and purposes of the said corporation, shall, to the satisfaction of the National Industrial Recovery Board, be limited to the powers, duties, obj ects and purposes of the Code Authority as provided in the Oode,o p ' rovided further that the Code Authority shall submit to the National Industrial Recovery Board, for its appro v al, its propos e d Certificate of Incorporation and pro posed by-laws, and no of either shall be made without the like prior approval of the National Industrial Recovery Board. If at any time, the National Industrial Recov ery Board shall de termine that the corporate status accru ed by the Code Authority is interfering with the proper exer cis e of its pow er s and duties under this Code, or with the effectuation of the polici e s o1 purposes of the Act, it may, after such notice and h earin g as it rnay deern necessary, require an appropriate modification of the structure of the Corpora Non (if consistent with the law of the State of Incorporation), the substitution of a corporation created under the laws of another State in the same manner as the existing Code Authority, the substituti on of a non-corporate Code Authority truly 1epresentative of the Indust?•y or such other actions as it may deern exp edien t. 2 See footnote, p. 1.

PAGE 11

7 (b) To elect officers and to assign to them such duties as it may consider advisable, to set up rules for its own procedure, and to provide for its continuance as the admmistrative agency of (his Code in accordance with t'he terrns of the Act the princtlples herein set forth. (c) To adopt by-laws, and rules and regulatiom for its pr11r:P-rlure and for the administration and enforce?nent of this Code and to submit the sa1ne to the National Industrial Recove1"Y Board for its ap proval, toqether with true copies of any amendments or additiom , u,hen 1nade thereto, and minutes of meetings when held, and such other information as to its activities as the National Industrial Re covery Board may deem necessary to effectuate the purposes of the Act. (d) To insure the execution of the provisions of this Code and to provide for the Compliance of the Industry with the provisions of the Act. (e) To select a Confidential Agency. The Aqency shall in no '1J..'ay be engaged in the industry or connected with any member thereof. The Code Authority shall furnish said Agency with such credentials as a1e necessary to facilitat e its operations. The Confidential Agency shall obtain from all members of the Industry reports of such character and in such form as is pervrmitted 1tnder this Code and under the Act. All individual reports shall be held as secret and confidential between the Agency and the reporting ' members, ewcept as her einafter provided. Each 1nembe r of the i'fldustry shall maintain accurate and cmnplete ?'ecords of its transactions wherever such records may be required under any of the provisiom of this Code, and shall fwrnish accurate 1eports based upon such records concerning any of such activities 11 h en 1equired by the Code Authority 01 the National Indust1-ial Recov er y Boa1d. If the Code Authority or the National Industrial Recovery Board shall deter1nine that substantial doubt ewists as to tlw accuracy of any sttwh report, so much of the pertinent books, records, and papers of such member as may be required for the vm'ifi cation of such report may be examined by an V!npartial agency agreed upon b etween the Code Authority and such member, or, in the absence of agreement, appointed by the National Industrial Recovery Board. In no case shall the facts disclosed by such ewami'IUltion be made available in identifiable form to any competitor, whether on the Code Authority or oth erwise, or be given any other ewcept S ' uch as may be required for the proper administration ana enforcement of the provisiom of this Code. In addition to information required to be submitted to the Code Authority, members of the industry shall furnish such statistical informatio n as the National Industrial R ecovery Board mALy deem necessary for the purposes recit ed in Section 3-A of the Act, to such Federal and State Agencies as it may designate; provided that noth'ing in this Cod e shall relieve any member of the in
PAGE 12

8 infor?ned with respect to the observance or non-observance of the Oode and of the Act. (h) To di1ect the 0 onfidential Agency to make surveys and inves tigations, compile reports, collect statistics in such manner and under such r e gulations as tlte Oode Authority may prescribe, subject to disappr oval of the National Industrial Recove-ry Board. (i) To cr e ate, subject to the approval of the National Industrial R e cov ery Board, a Trade Practice 0 om plaints C om;mittee which shall in ,vestigate all alleged violations of this Oode other than alleged labor v iolations, and act upon the results thereof, and, if the findings justify, to trans1nit said findings to theN ational Industrial Recovery Board and to any other prope r Govern1nental agency. (j) To use such t1 ade associations and other agencies as it deems prope r for the carrying out of any of its activities pro' uided for h e r e in, provide d that nothing herein shall relieve the O od e Authority of its dutie s or responsibilities under this 0 ode and that sucl1. t r ad e asso c iations and agenci e s shall at all times be subject to and co1nply with the provisions hereof. (k) To make r ecommendations to the National I ndust1-ial Recovery Board for the coordination of the administration of this Oode 'with such othe r cod es, if any, as may be related to or affect members of the industry, or any sttbdivision thereof. (l) It b eing found nece ssary, in order to support the ad?ninistration of this Ood e and te maintain the standards of fair competi tion establish e d by this Code, and to effectuate the policy of the Act, the C od e Authority is authorized: (1) To incwr such reasonable obligat i o n s as are necessary and proper for the foregoing purposes and to meet such obligations out of funds wltich may be raised as h erei nafte?' pro vide d which shall be held in trust for the pur pos e s of the Codej To submit to the National Industrial Recovery Board for its approval, subject to such notice and opportunity to b e h e ard as it nwy deem , n e cessary, (a) an itemize d budget of its estimate d exp ense s for the foregoing pu1poses, and (b) an equ . itable basis upon whic h the funds necessary to support such budget shall be contribute d by n u 1nbers of the industry j and ( 3) Afte1 such b1tclge t and ba s is of contribution have been by the National Industrial Recovery Board, to determine and obtain equitable con trib ution as above s e t forth by all such members of the industry, and to that end, if to institute legal proceedings therefor in its nanM . Each 17M1nb e r of the industry shall pay his or its equitable contrito the expense s of the maintenance of the Oode Authm"ity, d e t ermine d as h ere inabove provided, and subject to rules and regu lations p ertaining the r e to issued by the National Industrial Recovery Board. O nly of the industry complying with the Code and cont1-ibuti n g to the expense s of its administration as hmeinabove provided (un l e ss duly exempte d from 1naking such contributions), shall b e entitle d to participate in the s e lection of of the Oocle Authority or to rec eive the benefits of any of its voluntary a c tivit i e s , or to make us e of any emblem, or insignia of the National Recovery Administration. The 0 ode A u.thority shall neither incur nor pay any obligations substantially in exce ss of the a;mount thereof as estimated in its

PAGE 13

approved budget and shall in no event exceed the total amount tained in the app1•oved budget, except upon approval of the National Industrial Recov er y Boardj and no subs equent budg et shall any deficiency item for expenditures in excess of prior b ttdget esti mates, except those which the National Industrial R ecove ' ry B oaTd shall have so approved. (m) To cause to be formulated methods of cost finding and accounting capable of use by all 1nemb ers of the industry, and to sub1nit such methods to the National Industrial R ecovery BoaTel for 1•eview. If approved by the National Industrial R ecovery Board, full information conceTning such methods shall be made available to all of the industry. Thereafter, each members of the industry shall utilize such methods to the extent fownd practicable. Nothing herein contained shall be construed to per1nit the Code Autlwrity, any agent thereof, or any member of the industry to suggest uniform additions, percentages or differentials 01' other wnifo1•m items of cost which are designed to bring about aTbitrary unifonnity of costs or prices. (n) To 1nake compl-aint to the President on behalf of the Industry, in accordance with the provisions of Section 3 (e) of the Act, whenever any article is belng imported into the United States in substantial quantities or increasing ratio to domestic production of any c01npetitive article or articles and on such terms or under stte h conditions as to render ineffective or seriously to endanger the main tenance of this Code, and for the purpose of 'rnaking such complaint, to secure from rill members of the indust?'Y, through the Confidential Agency, all information necessary to support such c01nplaint. (o) To establish or designate, subject to the approval of the Na tional Industrial Recovery Board, such agencies on planning and fair practice as 1nay be necessary, which agencies shall cooperate ' with the Code Authority in developing fair trade p1 actices and in d , ustrial planning, including the regularization and stabi.lization of employment for the industry. (p) To appoint a Trade Practice Committee which shall 1neet 'with the Trade Practice C omndttees appointed under such other codes as may be related to the industry for the purpose of fonnulating fair trade practices to govern the relationships b etween en1ployers under this Code and employers wnde1 such other 0 odes to the end that such fair trade practices may be p1 oposed to the National Industrial Recovery Board as an1endments to this Code and to such other codes, and to issue such further rules and regula tions as may be necessary to establish such further fair trade prac tices, as rnay be approved by the National Industrial Recover?} Board. (q) To initiate, consider, and make recom1nendations for the 1nodi[ication or mnendment of this Code, which nwdifications o1 amend1nents shall become effective as part hereof upon approval by the National Industrial Recovery Board after such notice as it 1nay specify. (r) To provide appropriate facilities for arbitration, and, sub ject to the approval of the National Industrial R ecovery Board to prescribe rules of proc ed ure and rules to effect compliance with awards and determinations.

PAGE 14

10 ( s) I n order to a.s i t in maki,Ig tfective the 1eports from the indu try and in elim,inating unfair cornpetition the ode Authority may appoint a c01nmittee so con tituted as to gi e con.swner and go ernmental rerre entation ati facto-ry to the .. Yati.o7Wl I ndu trial R ecovery B oard to make a study with a view to the establi hnten t of cla ifications and standards of quality and ize of staple products of the industry wherever such standards are dee med feasible . T he 7mdings and recomntendations oi thi committee shall, be ubrnit t e d to the Nationall ndu.st1ial Recove1y B oard and after s-uch hearin gs and investigations a.s it may designate and upon approval by i t shall be 1nade a part of thi.s Code and shall be binding upon e ery member o f the indu.stry .2 6 . othing contained in thi.s Code shail con.stitute the 112embers of the Code A uthmity partners for any purpose. 7'V or slwll any m,em, b er of the Code Authority be liable in any nw.nne r to anyone for any act of any other nwmbe1 officer agent. or employee of the ode Authority. • ror shail any mmnher of the Code Autho1ity be liab le to anyone fm any act or omiss-ion to act under this Code , except for his own willful 1'7Wlfeasanoe o-r non-feasance .2 7 . T here slwll b e established an Industrial R elations C ommittee f or the Industry which slwil co-ns-ist of an equal number o f re p res entati'ves of employers and employees and an impartial chairman . T he J Tational industnal R ecovery B oard shall appoint such impa1tial chairman upon the failure of the co-mmittee to select one by ag1eement. I f no t1uly 1•epresentative labor organization ewists the em p loyee nwmbers o f s-uch board nwy be n01ninated by the L a b or .Ad -isory B oard of the iV. R. A . and appointed by the 7'Vationall ndus trial R eco-very B oard . T he e1nployer representatives shall be chosen by the ode Authority. uch committee shall deal with complaint ' relating to labo-r in acco1dance with 1vules and regulatio-ns issued b y the i\ ational hulu.strial R ecove7'Y B oard . The Industrial R elations Committee may estriblish uch divisional 1egi.onal and local industrial adjustment agencies as it 1nay deem desirable, each of which s hall, be co-nstituted in like manner as the Industrial R elations Committee. 2 ARTICLE VII-TR.illE PRACTICES 1. 1\ o member o f the Ind-ustry shall directly or indiTectly give, permit t o be given, or offer to give anything of value jo1 the purp ose of influencing 01' rewarding the action of _any employee agent or r epresentative of another in 1elation to the business of the employer of such employee the principal of Slteh agent . or the ?'epresente d party witho-ut the knowledge of such entploye7>, p1incipal or party. T his pro-vision shall not be trued to p1ohibit free and genm ' al distribution o f articles co-mmo-nly used for advertising except s o far as such articles are actually used for com11tercial bnbe1:; a.s hereinabove defined . 2 1 o member of the industry shall make or allou . to be made any payments or allowance of rebate refunds commissio-ns credit s or u nearned disco-unts whether in the f01'm of nwney 01' otherun s e or extend to certain purcha.se1's any special services or privileges not emtended to all purchasers on like te1•ms and condition-s . No member 2 See footnote, p. 1.

PAGE 15

11 of the Industry sluill allow buying commissions, rebates, extra dis counts, or other concessions to purchasing agents or to p'ttrchasing agencies.2 3. No member of the industry shall extend to a buyer the right to confirm a proposed purchase for a period of more than thirty (oO) days from the date when said buyer placed the order as subject to further confirmation. No option shall be extended to a buyer for more than thirty (30) days. ly. No stock protection shall be given involving price adjustment on merchandise delivered and no price guaranty shall be given against decline on orders booked for future delivery.2 5. No member of the Industry shall accept the return of 1nerchandVJe sold to a customer in good faith and shipped in accordance with specifications, order, or contract. In no event shall any 1nerchandue be accepted for return, if retained by a customer for more than ten (10) days after receipt of the merchandue, unless the said merchan dise u returned because of hidden defects effecting the salability of the merchandue.2 6. No member of the industry shall accept the return of merchandise for exchange. 7. No member of the industry shall disseminate, publish, or circulate any materially false or misleading information relative to any product of a competitor or the credit standing or ability of a competitor to perform any work or manufacture or produce any product, or to the conditions of employment among the employees of a competitor. 8. No member of the industry shall ship handkerchiefs which do not conform substantially in quality and value to the sample submitted or to the representations made prior to securing the order, except with the knowledge and consent of the purchaser. 9. No member of the industry shall make any sale or contract of sale of any handkerchief under any description which does not substantially describe such article in terms customarily used in the industry. 10. No member of the industry shall use any work, name, label, or brand indicating a place or country or origin or type of a handkerchief, associated in the trade with a place or country or origin, except as to articles actually made in said place or country of origin. 11. No member of the industry shall maliciously induce or attempt to induce the breach of an existing oral or written contract between a competitor and his customer or source of supply, or interfere with or the performance of any such contractual duties or serv1ces. 12. No member of the industry shall willfully aid or abet another member of the industry to commit any unfair practice. 13. No member of the industry shall accept from a purchasing agent or purchasing agency any order for merchandise designated for or addressed to the account of another member of the industry without the knowledge and consent of such other member of the industry. 14. No member of the industry shall use the word "Hand Rolled Hem" to designate that class of handmade hem known as" Whipped Edge", which latter term means any hem or edge on which the 2 See footnote, p. 1.

PAGE 16

12 thread used to :fasten same is whipped or , looped around and encloses the entire rolled edge. 15. No member o:f the industry shall :falsely mark or brand any product of the industry with the tendency to mislead or dceive customers or prospective customers as to the grade, quality, quantity, substance, character, natur.e, origin, size, finish or preparation o:f any product of the industry, or otherwise. 16. No member of the industry shall make or cause to be made or knowingly permit to be made or published any false, materia,lly inaccurate, or deceptive statement by way of advertisement or otherwise, concerning the grade, quality, quantity, substance, character, nature, origin, size, fini s h or preparation of any product of the industry, having the tendency or capacity to mislead or deceive purchasers or prospective purchasers. 17. All specifications as to size of handkerchief, count o:f cloth6 type of cloth, whether combed or carded, as well as the number or stitches on the hem, shall be in substantial conformity with samples or specifications submitted by seller to buyer. There shall be a reasonable tolerance for variations resulting from the manufacturing processes. All shipments of handkerchiefs embellished with initia. ls or other embroidery shall conform to types as specifid, whether hand-machine or so-called "hand-loom embroidery" or Schiffii machine embroidery or all-hand embroidery. Misrepresentation of type or methods of process of embroidery is prohibited. Substitution of one type of embroidery for another is likewise prohibited. The designation of linen qualities by Counts or Setts is not permissible, unless such Counts or Setts contain the standard number of threads to the square inch and unless the yarn numbers in such Counts or Setts are those generally used in the Irish Linen Industry in the weaving o such Counts or Setts and are recognized by the Irish Linen Weaving Industry as standard. 18. Samples shall be furnished at the same price as the merchan dise, if said samples are made in accordance with the se ller's make up. No member of the industry shall absorb any part of any increase in the cost incurred by the seller for samples other than those o his u sual make-up. Samples shall be given to purchasers or retailers only when accompanied by a stock order based upon the said samples. 19. (a) If the Administrator, after inve stigation, shall at a n y time find both (1) that an e?nergenrnJ has arisen within the industry adruersely affec ting snwll enterprises or wages or labor conditi on, or t ending toward ' monopoly or other acute conditions which tend to defeat the p 'U?'poses of the Act/ and (2) that the determination of a stated ndnimum price for a sp e cified product within the industry for a li1nited period is necessary to 1nitigate the conditions constituting enMrqenc y and to e ffectuat e the purposes of the Act, the Code Authority cause an impartial ag ency to inve stigate costs and to recommend to the a determination of a stated ?nin-imum price of the produ . ct affected by the e?nergenc y and the1eupon the Administrator may proceed to such stated mini?nwm price. (b) When the Administrator shall have deter1nined such stated minimwm price for a specified product for a stated period, wlvich price shall be reasonably calculated to mitigate the conditions of such

PAGE 17

13 emergency and to e ff ectuate the purposes of the National Industrial R ecovery Act, he shall estab lish such price. Therea fter, during such stated period, no m,ember of the industry shall sell such specified products at a net realized price b e low said stated minimum pric e and a n y such sale shall be dest1uctive price cutting. F1o1n time to time, the 0 od e Authority 1nay rec01nmencl 1eview or reconsideraiion or the Ad1ninist1 ator nwy cause any detenninations hereunder to b e 1•eviewed or r considered and app?'Op?'iate act ion taken.1 20. Nothing in this Code hall limit the effect of any adjudication by the Court or holding by the Federal Trade Commis ion on complaint, finding, and orde r, that any practice or method is unfair providing that uch adjudication or holding is not inconsistent with any provision of the Act, or this Code. No 17U?nbe?' of the Indust!Y shall deviate from the price fixed by a contTact . All cont1 acts andjor orders shall b e binding in acco1dance with the provisions thereof.2 92. No n w1n b e1' of the Industry shall accept the attem ,pted canc e l lation of a contract wheTe the effect of such cancellation would be to circumv nt any provisions of this Code .2 2 . . No 1nem . ber of the Industry shall ship merchandise on consign ?nerd or 1n nwPandum.2 ly. No 1n 1nber of the Industry shall p1ocure or attempt to JJrocure, any infonnation concerning the business of another 111e1nbcr which is properly Tega1ded by such as a trade secret or conficl ntial within its oTgani zation ( except on consen t of suc h eT ) . 2 5 . ;ro nw1nber of the Industry shall pack handkerchiefs not of fir t quality in s al d cmtons o1 envel opes or in any other ea2ed contain ers so that the whole oT pm t of the handkerchie f is not e asily accessible fo1' exwnination unless said individual aTe clearly 17W7'ked ' seconds" oT otheTwise appropriately designat e d as containing 1nerclwndise other than ' firsts " .2 26. (a) l Vhen the basic fab1ic fro?n ' which a handkerchief is manu factur ed, e77l.bodies in either the warp O?' the filling, or both, nwre titan one kind of yarn, no nwtter f r01n fibre or filmn ents the yarn nwy be spun, the handkerchief nwnufactu?ed from such fabric shall not be labelled 07' by any of phrase ology b e d esignated or 1'efe1red to by the name of any on e only of the con1ponent fib1es or filam ents, unless such component constitutes by thread count 80% of th e fabri c , and p1ovided f u7ther, that unless the fabric is genuinely 1 00% of any fibr e 01' filmnent designation (linen, c otton, silk, 1 ayon, etc .) excl usive of 1egular selvage, except as h ereinafte1' provided fo?' fancy woven materials, the actual p ercentage by th1ead count of any component of at l east 60% and which i l ess than 100% shall be 1Jro1nin ntly indicat d on any label 01' ticket identifyinr; the hand lceTchiefs manufactttred f1'01n such fabric. I n the case of fanc y woven 1naterials, in which the warp and t h e filling of the plain weave are made f?'O?n ya1"ns of the sanw jib1e wh the1' the fancy lements ar e plain cord ed or fa11c y boTd ers , 01' ove1' e ffects, uc h as checks or plaids, and are made of of other 1 Italic ized words added by Amendment No. 1, approved Oct. 3, 1934. 2 See f<>otnote, p. 1.

PAGE 18

14 fibres O'l' filaments only the true fab'lic na11W of the plain weave may be de ignat d, i f only one fibre elem. nt pecifi d on the label. The above p1ohibitions shall not apply to 1nerehandi e deli vered on o1 b fm e D ce1nb r 31 t 19 34 provided that ections 1 and 19 of this A1ticle are not violated. (b) The elem-ent u e d for appliques, entb?oiderecl en1b lli h1nents, lace coTner lace edge or any mat 'l'ial attached in any way to com plete the handke?chiefs, hall not b e con ide1 d as af! cting the true d esignation of the basi c mate1ial as h 1' in pecified . ( c) Jro me1nbe r of the Indu try shall use Zabel the of e1nphasizes in any 'IJWnneT a minm elem .ent in the nwnufactu?e, construction 07' finish of the handkerchie f fabric or in the proce sing o?' en1bellishment of the handkerchief itself descriJJtive ing 1nay have a tend ncy to induce a purchase?' to b elieve that the said wording applies to the handkerchie f as a 1 hol e or to the basic fab?ic 7'eferred to in paragraph nw1 k ed ':a ' o f thi ection . (d) i\!o 1nen1b 1' of th lndu t?y shall so l abel handkerchiefs, 8p ecia 1ly 01' otheru'ise at the 1' quest of any lJUrclwseT 07' purcha ing ag enc y as to in any way conflict ith th e pro ision o f this ection.2 7 . 'o 1ne1nb 7' of the l nd7.tstTy sha11 in sampling fanmJ white satin strips m prints or hire co7'Cls oT colored cords or col ored woven borde1s in eTt mnples in swnple fold 7'S so as to cone al f'ront the pTosp ecti e customeTs the fact that one ide of the ha1ul'h erchief is 1aw sel age un titched 1t,nle a con pimwus lab e l or ma7'king of s01ne kind i placed on the handk erchie f indicating that only th1ee side s of the handke1chief a1e i nwned .2 0 . The Oode AuthoTity shall create, subject to the app1o al of the National lndu t1ial R ec ov ?'Y Board, appTolJ7'iate 1' gulations and facilities fo?' the 1egi t1ation of new 01' o1igina l styles, designs 01• patterns of handkerchiefs. Upon the creation of stwh regulations and facilities and upon the appToval thereof by the National Industrial Recov ry Board, no 1n 1nber of the I ndu,stry othe1 than the 'JegisteTing mem. b er shall 17Wnufacture or cause to b e manufactured any hand"Ae1chie fs incorporating any such new 01' original styles, designs, or patte1'71S as may b e 'l'egis t e ? ed as he1einabove p1ovided, except the written con ent of the r egis tering 1nem ber.2 ARTICLE VIII-TERMS OF s LE Mawimwm ter771S of sal e fo?' thi' I nclust?'y shall b e -l. N e t cash t en (10) days; 07' with an equal izing dijfe 1ential in the price, two pe7' cent ( %) ten (10) clays-sixty ( 60) extra/ or two and on e-half pe1 cent ( liz o ) ten (10) days-thirty (30) extra o?' th?ee pe1 cent (37c) ten (1 0 ) days;" or 0 . 0 . D. thY e p er cent (3%). The cash disco , unts as outlined in this ection hall b e inte7'p1'e t e d as maxin1u1n discounts allowed 1.mder this A7tic l e . embe rs of the lndust?'Y shall b e p r1nitt d to ll at te1 ms other than those speci fically stated in this Article provided, that such te1'7718 shall not b '17W1'e advantageous or mor lib Tal than those t 1'7ns specified in this A1ticle, and further , that such dating shall not in any case exceed seventy ( 0 ) days fTo1n date of billing of 1ne1'chandise to the buyer and further, that in no case shall the cash discount be in excess of t h ree per cent (3%) .2 2 S ee foOotnote, p. 1.

PAGE 19

15 2. All the above terms shall be effective from date of invoice or of shipment, whichever may be earlier. 3. Extra dating is expres ly prohibited. 4. The terms for the members of the industry d es cribed in Section 2 (b) of Article II hall be net ca h within t e n (10) days. 5. No member of the Ind' ustry shall allow dis count if bill is not paid within fifteen (15) days of due dat e at the offic e at whic h the account is dtte and payable. 2 6. Members of the indu try hall charge leaal intere t on all past due accounts, which charge shall accrue at maturity of bill plus five days grace. 7. No member of the industry shall allow anticipation exceeding six percent (6%) per annum. 8. No member of the industry shall violate any of the provisions of this Article, directly or indirectly, either by false bookkeeping methods or otherwise. 9. All shipments shall be F.O.B. point of origin, except that shipments of packaged, trade-marked handkerchiefs distributed directly to the retailer by the manufacturer may be F.O.B. destination. The term "packaged, trade' rnarked handkerchi e fs ' as use d h e r e in, shall mean and include one (1), tv. o or three (3) handke rchi e fs com pletely encased in a carton or seal e d e n v e lope wrap, which carton or wrap bears the reon the trade-1nark of the membe r of the Industry and a suggested retail prioe.2 10. No member of the Indust1y shall give any discounts except as provided in this Article whethe r in the nature of trad e discounts or increased cash discounts and whe ther arriv e d at by incre asi n g the gross selling price or in any oth e r manner. 2 11. The seller shall designat e the t erms of payment under which his merchandise shall be sold in accordanc e with Section 1 of this Article. 2 12. A member of the Industry 1nay bill m e rchandise shipped on or after the 25th of the nwnth as of the first of the following month.2 ARTICLE IX-NRA LABELS 1. Hereafter, the Oode Authority may apply to the National Industrial Recovery Board for grant of the nec e ssary authority and exclusive right to issue and sell N RA labels, 01 authoriz e d substitutes therefor, to members of the Industry; and, upon the issuance of ap propriate orders by the National Industrial Recove1y Board, under powers vested in it by Executive Orders of the President, including Executive Order No. 6859 and otherwise, the Oode Authority shall have the exclusive right in this Industry to issue and sell said labels or said authorided substitutes to the members of said Industry; and thereafter all merchandise manufactured sub_ject to the provisions of this 0 ode shall bear on the carton containing such m e rchandise, or i n such other place as the Oode Authority, subject to r evie w by the National Industrial Recovery Board, may designate, an NRA label, or an authorized substitute therefor, to symbolize to purchas e rs of said merchandise the conditions under which it has been manu factured.2 • See 1iootnote, p. 1.

PAGE 20

16 13. The issuance and sale of said labels, and/or of said authorized substitut es, shall b e gov e rned by the following rules and regulations, a n d such oth er rule s and regulations as 1nay hereafter be issued 01' approv e d by the National Industrial Recovery Board: (a) Each lab e l shall bear a registration numbe r or numbers esp e cially assign e d to each of the industry by the Code tlzority, or a s e rial number, and shall re1nain attached to all such 1ne rchandise whe n sold to the retail distributor. (b) Any and all m embe rs of the Industry 1nay apply to the Code Authority for a permit to use such N RA label, permit shall b e grant e d to the m only if and so long as they comply with thirs Code. (c) For the purpose of ascertaining the right of of the Industry to the continu e d use of labels and of prot e cting pttrchasers of 1ne rchandise b e a ring suc h lab e ls and of insuring to e ach individual 1 nembe r of the Industry that the symbolism of such label will be maintain e d by virtue of c01nplian c e the provisions of this Code by all1n e mb e rs of the Industry using said lab e l, the Code Authority shall establish rule s and r e gulations and appropriat e machin ery for the issua n c e of labels and the insp e ction, ex a1nination and supervi sion of the practices of of the I ndustry_. (d) The charg e made for such lab e ls by the Code Authority shall be subj e ct to the appro1Jal of the National I ndustrial R ecovery Boanl. (e) The application of the provisions of this Article and the rules and r e gulations gov erning the issttance and use of said labels shall at all be sub.f e ct to rules and regulations issued by the National I7idustrial Recove?!J Board.2 ARTICLE X 1. Employees shall have the right to organize and bargain col lectively through representatives of their own choosing. and shall be free from the interference, restraint, or coercion of 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. 2. No emp l oyee and no one seeking employment s hal.l 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. 3 . Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President. 4. This Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with the provision of subsection (b) of Section 10 of the National Industrial Recovery Act, from time to time to cance l or modify any order approval, licen se, or regulation issued under Title I of said Act and specifically, but without limitation, to the right of the President to cancel or modify his approval of this Code or any conditions impos ed by him upon his approval thereof. 5 . Within each state, no provision of this Code shall supersede any laws of such state imposing more stringent requirements, regu-2 See fiQotnote, p. 1.

PAGE 21

17 lnting the age of employees, wages, hours of work, or health, fire, or general working conditions, than under this Code. 6. No member of the industry shall manufacture, or cause to be manufactured, any handkerchiefs, in whole or in part, in any prison, p1 i son camp,. penitentiary, reformatory, or other penal institution, or in any place by means of prison labor. 7. No work shall be done or be permitted to be done in any base ments, un anitary building , buildings unsafe on account of fire risks, or otherwise dangerous. In any state in which buildings u sed in the indu try, including dwellings, are ubject to inspection by the Department of Labor of such state, or of the Government of the United States, no work hall be done in uch building or dwellings without the provisions relating to such inspect ion having fir s t been complied with, and proof of such compliance having been supplied to the Code Authority. 8. Any employer who at any time shall manufacture any article or articles subject to the provisions of this Code, shall be bound by all the provisions of this Code as to all employees engaged in whole or in part in such manufacture. In case any employee shall be engaged partly in such manufacture and partly in the manufacture of goods of another character, this Code shall apply to s uch portion of such employee 's time as is applied to the manufacture of articles subject to this Code. 9. No provision of this Code shall b e so applied as to permit monopolies, or monopoli stic practices, or to eliminate, oppress, or discriminate against small enterprises. 10. All nw1nbers of the Industry shall po st and keep posted in a conspicuous place accessi bl e to employees c01nplete copies of this Ood e . In addition to the fo regoing c01npl ete copies of all labor provis ions of this Oode tog ether with any necessary interp1etations 8hall be placed in a conspicuous place on each factory floor and in all plac e s of bus iness oth er than the factory whe1e three or more pe1'sons a re employed. Such posted copies of the labor provisions of this Oode and of the said interp1etations shall b e in English and/or in any oth er necessary language or Zanguages.2 11. The Handkerchief Industry approves the practice of handling disputes between its members, between memb e r s and their c u sto mers, and between members and those from whom _ they purchase, in a fair and rea s onable manner coupled with a spirit of moderation and good will, and every effort should be made by the disputants themselves to arrive at an agreement. In the event that they are unable t(> agree, the dispute hould be settled by arbitration as provided by the American Arbitration Society. l B . Eve1y e1nploye1' hall provide for the safety and health of em ployees during the h ows and at the places of their e1nploymen t. Etandmds of safety and health shall be submitted by the Oode Authority to the National I ndustrial R ecovery Board within three (3) ?n, onths after the e fl ctive date of this amendm , ent.2 Approved Code No. 53. R egistry No. 237-1-01. 2 See f<>otnote, p . 1.

PAGE 22

Approved Code No. No. 1 AMENDMENT TO CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF INDUSTRY As Approved on October 3, 1934 ORDER APPROVING AMENDMENT TO THE CoDE OF FAIR CoMPETITION FOR THE HANDKERCIDEF INDUSTRY An application having been made pursuant to and in full compli ance with the provisions of Title I of the National Industrial Re covery Act, approved June 16, 1933, for approval of an amendment to the Code of Fair Competition for the Handkerchief Industry and hearings having been duly held thereon and the annexed report on said amendment, containing findings with respect thereto, having been made and directed to the President: NOvV, THEREFORE, on behalf of the President, we, the National Industrial Recovery Board, pursuant to authority vested in us by Executive Orders of the President, do hereby incorporate by reference, said annexed report and do find that said amendment and the Code as constituted after being amended comply in all respects with the pertinent provisions and will promote the policies and purposes of said Title of said Act, and do hereby order that said amendment be and it is hereby approved, and that the previous approval of said Code is hereby modified to include an approval of said Code in its entirety as amended. NATIONAL INDUSTRIAL REcoVERY BoARD, By G. A. LYNOH, Administrative Officer. Approval recommended : PRENTiss L. CooNLEY, Acting Division Administrator. WASHINGTON, D. C. Octob er 3, 1034. NoTE.-This order approves changes in Article VIII of the code. See p. 14. (18)

PAGE 23

REPORT TO THE PRESIDENT The PRESIDENT, The Whi te House. Srn: An application has been duly made pursuant to and in full compliance with the provision s of Title I of the National Industrial Recovery Act for c ertain am endments to the Code of Fair Comp etition for the Handkerchief Industry, and Hearings were conducted on said proposed amendments in Washington on April 18, 1934. The amendment to Article VI, Section 4(m) makes each member of the Industry liable for his or its equitable contribution to the expenses of the maintainence of the Code Authority, and the amend ment, to Article VIII, Section 19 provides that, under certain cir cumstances, an emergency may be declared to exist in the Industry, and that, in such event, stated minimum prices for the products of the Industry may be prescribed for a limited time. Both a mend ments are standard in form and content. The Deputy Administrator in his final report to me on said a mend m ents to said Code having found as herein set fort h and on the basis of all the proceedings in this matter: I find that: (a) The amendment to said Code and said Code as amend e d are well desi gned to promote the policies and purposes of Title I of the National Industrial Rec overy Act, including the removal of obstruc tions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof; and will provide for the general welfare by promoting the organization of Industry for the purpose of cooperative action among trade groups, by inducmg and maintaining united action of labor and management under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemploy ment, by improving standards of labor, and by otherwise rehabilitating industry. (b) The Code as amended complies in all respects with the pertinent provisions of said Title of said Act, including but without limitations Subsection (a) of Section 3, Subs ection (a) of Section 7, and Subsection (b) of Section 10 thereof. (c) The Handkerchief Industry Association, Inc. was and is an industrial association truly representative of the aforesaid Industry and that said association imposed and imposes no inequitable resstrictions on admission to membership therein and has applied for and consents to this amendment. (19)

PAGE 24

20 (d) The amendment and the Code as amended are not designed to and will not permit monopolies or monopolistic practices. (e) The amendment and the Code as amended are not de igned to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said amendment. OCTOBER 3, 1934. NATIONAL INDUSTRIAL RECOVERY BoARD, By G. A. LYNCH, Administrative Officer.

PAGE 25

Approved Code No. 53-Amendment No. 2 AMENDMENT TO CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF INDUSTRY As Approved on October 31, 1934 ORDER APPROVING AMENDMENT OF CoDE OF FAIR CoMPETITION FOR THE HANDKERCHIEF 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 approval of amend ments to the Code of Fair Competition for the Hanakerchief Industry, and hearings having been duly held thereon and the annexed report on said amendments containing findings with respect thereto having been made and directed to the President: NOW! THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including Executive Order No. 6859, and otherwise; does hereby incorporate, by reference, said annexed report and does find that said amend ments and the Code as constituted after being amended comply in all rspects with the pertinent provisions and will promote the policy and purposes of said Title of said Act, and does hereby order that said amendments be and they are hereby approved, and that the previous approval of said Code is hereby amended to include an approval of said Code in its entirety as amended; and ORDERS, FURTHER, that there shall be created forthwith a Special Commission composed of three members, one of whom shall be nominated by the Labor Advisory Board of theN ational Recovery Administration, one by the Division Administrator of the Textiles Division of the National Recovery Administration).. and one by the Code Authority for the Handkerchief Industry. baid Commission shall study and investigate the production of handkerchiefs by means of hand sewing and hand embelli shment in the home , and shall submit to the National Industrial Recovery Board, within forty ( 40) days from the date hereof, a report containing findings with recom mendations for minimum piece work and/or hourly rates for hand sewing and hand embellishment in the home, which recommendations, upon the approval of the National Industrial Recovery Board, shall become effective as part of this Code. Pending the report of said (21)

PAGE 26

22 Commission and the approval of any recommendations thereof by the National Industrial Recovery Board, the provisions of Section 8 (a) of Article IV, of said Code, as amended, shall be stayed, insofar as the provisions of said Section may apply to hand sewing and hand embellishment in the home. NATIONAL INDUSTRIAL REcOVERY BoAIID, By G. A. LYNCH, Officer. Approval recommended: PRENTiss L. CooNLEY, Acting Division WASHINGTON, D. c., October 31, 1934. N oTE.-Tbis order approves changes in articles II, III, IV, V, VI, VII, VIII, IX, and X. See pp. 1, 2, 3, 5, 10, 14, 15, and 16.

PAGE 27

REPORT TO THE PRESIDENT The PRESIDENT, The W Mte Howe. Sm: An application has been duly made pursuant to and in full compliance with the provisions of Title I of the Nation a l Industrial Recovery Act for certain amendments to the Code of F air Competi tion for the Handkerchief Industry, and Hearings were conducted on said proposed amendments in Washington on April18, 1934. The original Code of Fair Competition for the Handkerchief Industry was approved October 9, 1933. The proposed amendments are the result of close observation of the Code in actual operation. Generally speaking, the amendments constitute no considerable modi fication of the :provisions of the original Code; they seek merely to eliminate certain inequalities, to close up certain loopholes which have become apparent, to assist in enforcement, and to f a cilitate ad ministration. Such additions to the original Code as are made herein involve, primarily, trade practice provi s ions, which, in practically every case, were referred to in the original Code as subjects upon which the Code Authority was to study and make recommend a tions. The primary object of this set of amendments is to consolidate the gains achieved by the original Code and to go a little further toward placing competition in this Industry on a sound and rational basis. The Deputy Administrator in his final report to the National Industrial Recovery Board on said am e ndments to s aid Code having found as herein set forth and on the ba s i s of all the proceedings in this matter : The National Industrial Recovery Board find s that: (a) The amendments to said Code and said Code as amended are well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including the removal of obstruc tions to the free flow of interstate and forei g n commerce which tend to diminish the amount thereof; and will provide for the general welfare by promoting the organization of Industry for the purpose of cooperative action among trade groups, by inducing and m aintaining united action of labor and management under adequate governmental sanction and supervision, by eliminating unfair competitive prac tices, by promoting the fullest pos s ible utiliz ation of the present pro ductive capacity of industries, by avoiding undue restriction of pro duction (except as may be temporarily required). b y increasing the consumption of industrial and agricultural through in creasing purchasing power, by reducing and relieving unemplo y ment, by improving standards of labor, and by otherwise rehabilitating industry. (b) The Code as amended complies in all respects with the pertinent provisions of said Title of said Act, including but without limitations Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof. (23)

PAGE 28

24 i1111111111 3 1262 08486 8164 (c) The Handkerchief Industry Association, Inc. was and is a n industrial association truly representative of the aforesaid Industry and that said association imposed and imposes no inequitable restric tions on admission to membership therein and has applied for and consents to this amendment. (d) The amendments and the Code as amended are not designed to and will not permit monopolies or monopolistic practices. (e) The amendments and the Code as amended are not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said amendment. For The National Industrial Recovery Board: OcTOBER 31, 1934. G. A. LYNOH, Administrative Officer . 0