Approved Code No. 363 Registry No. 248-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MEN'S NECKWEAR INDUSTRY 

AS APPROVED ON MARCH 24, 1934 

u 

F L .. . o ~ 

WE DO OUR PART' 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, W~hington, D.C. - - - - - - - - Price S cents 

y 
This publication is for safa by the Superintendent of Documents, Government 

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and Domestic Commerce. 

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• 
Approved Code No. 363 

CODE OF FAIR COMPETITION 

FOR THE 

MEN'S NECKWEAR INDUSTRY 

As Approved on March 24, 1934 

ORDER 

CODE OF FAIR COMPETITION FOR THE MEN'S NECK WEAR 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 a Code of 

Fair Competition for the Men's Neckwear Industry, and hearings 

having been duly held thereon and the annexed report on said Code, 

containing findings with respect thereto having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby appro,ed subject to the following condition : 

The schedule of minimum piece rate wages provided in Article 

III shall be subject to further study both by this Administration and 

by the Code Authority for the purpose of shqwing whether it is 

fully in the public interest and in the interest of the industry and of 

labor. To this end, the Code Authority shall report to the Administrator thereon within sixty days after the effective date hereof with 

recommendations for the continuation, elimination, or modification 

of any or all of such wage rates, and the Administrator reserves the 

right upon the basis of such recommendations or upon the basis of 

hearings if he shall prescribe them, or otherwise, to provide for 

such modification or exception as he shall deem to be in the public 

interest and in the interest of the industry and of labor. 

HUGH 8. JOHNSON, 

Administrator for lnd'IJ)Stri{d Recovery. 

Approval recommended : 

A. D. W HITESmE, 

Division Administrator. 

,v AsHINGToN, D.c., 

March f34, 1934. 

48726°-425-144-34-1 (467) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm : This is a re,!>0rt of the Hearing on the Code of Fair Competition for the Mens Neckwear Industry conducted in Washington, 

D.C., on August 31, 1933, and subsequent conferences held for the 

purpose of obtaining a code for the Men's N eckwear Industry under 

Title I of the National Industrial Recovery Act. 

NATURE OF THE INDUSTRY 

The manufacture of men's neckwear involves these principal operations : cutting the fabrics, operating or sewing, turning and pressing. The cutter has ordinarily worked on a time-rate basis while 

employees in the other classifications of work have been employed 

on a piece-work basis. In past years there has been a decided 

tendency away from the machine process and toward the employment 

of the hand operator. Most of the ties now manufactured are sewn 

by hand and to a large extent on a home work basis. 

The years from 1929 to 1931 witnessed a decided improvement in 

the quality of men's neckwear. Despite the tendency toward production of handmade ties, the number produced in 1931 was only 

about 13 per cent below the output of 1930. The value of total production in 1931, however, was about 37 per cent below that of 1929. 

Nearly 50 per cent of the production of this industry is still manufactured in New York City and most of the concerns in that city 

operate under a union agreement. In recent years, however, the 

proportion of men's neckwear produced in New York has been 

steadily declining. In 1929 the State of New York produced 65 

per cent of the total value of production of four-in-hand ties as compared with about 53 per cent in 1931. It is probable that this decline has continued since 1931. The neckwear manufacturers outside of New York are small but are increasing in importance. Pennsylvania produced 6.5 per cent of the total value of neckwear produced in the United States in 1931 as compared with 3.5 per cent 

of the total value in 1929. Similar gains occurred in Massachusetts, 

Missouri, California, Illinois and Ohio. 

The Manufacturing establishments in this industry are small and 

competition is keen. In 1929 the industry was composed of 331 establishments employing an average of 26 workers each. By 1931 

there were 368 establishments employing an average of 22 workers 

each. The average number of employees in the industry in 1929 was 

8,565 as compared with 8,155 in 1931. This represents a relatively 

slight decline. Nevertheless, the industry has a serious unemployment problem that is closely related to the decline in New York production and the rise in production in other areas mentioned. Thus, 

(468) 
469 

while there were only 410 fewer workers employed in the entire industry in 1931 as com~ared with 1929, a decline of 1,092 employed occurred in New York State alone. Since there were 3,166 neckwear 

workers employed in New York State in 1929, it appears that 25 per 

cent of the New York neckwear workers had been displaced by 1931. 

Unemployment thus represents a serious problem in the industry in 

New York where a surplus labor supply exists and seasonal fluctuations are apparently more pronounced than in other centers. It is 

probable that there is relatively less unemployment in the smaller 

and newer centers of neckwear manufacture where wages paid are 

lower than in New York City. 

The Code of Fair Competition for the Men's Neckwear Industry 

as revised and approved may be summarized as follows: 

Article I defines certain important terms used in the Code. 

Article II prescribes the maximum hours of work for employees in 

the industry. 

Article III specifies minimum weekly and piece-rate wages and 

conditions under which said wages are payable in the industry. 

Article IV contains the general labor provisions. 

Article V constitutes the Code Authority for the industry and defines its duties and powers. 

Article VI prohibits certain unfair trade practices. 

Article VII provides for the modification of the Code. 

Article VIII states the purpose to prohibit use of the Code or any 

provisions thereof to permit monopolies or monopolistic practices or 

to eliminate, oppress or discriminate against small enterprises. 

Article IX states the general policy that price increases shall be 

limited as far as possible to actual increases in the seller's cost. 

Article X designates the effective date of the Code. 

WAGES 

The proposed Code of this industry, as originally submitted, provided for occupational classifications of work and specified certain 

minimum hourly rates applicable in each occupation. At the Public 

Hearing, however, a large group of manufacturers withdrew their 

assent to the proposed Code, and proposed considerably higher 

minimum hourly rates which, they insisted, would make the Code 

more equitable. At that time no serious objection was raised to 

the principal of occupational classifications and the application of 

minimum hourly wage rates to the different classes of work. 

Members of the industry in New York City having themselves 

collective agreements with labor insisted that the minimum hourly 

rates demanded by manufacturers of men's neckwear located outside 

of New York City were not high enough. llanufacturers outside of 

New York maintained that the productivity of their employees was 

below the average for the industry and therefore opposed the higher 

rates demanded by the New York group. Definite data showing 

relative productivity of employees in various producing areas was 

not however presented. This difficult difference between manufacturers in the high wage and low wage areas delayed the development 

of the Code for several months. Finally, through numerous and 

prolonged conferences, substantial agreement between both groups 
470 

of manufacturers and a fairly unanimous assent to the Code was 

obtained as the result of the adoption of the piece-work basis of 

employment and the minimum rates specified in Article III of 

this Code. The final working out of the minimum piece rate wages 

in a manner which would be the most satisfactory to all members 

of the industry and in a way to admit to some degree of flexibility, 

represented the major objective of the final series of conferences. 

Provision is made in Article III for changes in rates of pay by 

the Code Authority subject to approval of the Administrator, and 

for establishing rates of pay for work not provided for in the Code, 

consistent nevertheless, with Code standards and subject to the Administrator's approval. Provision is further made in Article III 

giving effect to terms of collective agreements between employers and 

employees entered into prior to the date of approval of the Code 

unless changed by mutual agreement, in which event such change 

may not result in wages lower than those prescribed in Article III 

or 1n hours longer than those prescribed in Article II. With certain 

exceptions, a minimum wage of thirteen dollars ($13.00) per week 

is fixed for northern areas and twelve dollars {$12.00) per week for 

southern areas. Cutters shall be paid at not less than the minimum 

weekly rate of thirty-five dollars ($35.00). 

HOURS 

The unemployment problem in the men's neckwear industry involves the absorption of displaced workers; a large number of whom 

are in New York City. A need of equal importance is that of more 

regular employment in the industry as a whole but this need is most 

acute in New York City. Seasonal unemployment, however, is an 

industry-wide problem. The thirty-six (36) hour work week provided for in the Code will have the effect of spreading and regularizing employment in the industry. It is important, however, to assure 

"outside" production areas a sufficient work force to meet seasonal 

demands. 

Accordingly, the Code provides that not over four ( 4) hours overtime above the thirty-six (36) hour week may be worked for not 

more than eight (8) weeks in a six months' period in instances where 

a manufacturer cannot supply his needs through hiring of unemployed neckwear workers in his community. Such overtime is to be 

paid for at regular piece-rates. The wage provisions in the Code 

are a necessary corollary of the hours of work established. 

Certain exceptions to the maximum thirty-six (36) hour work 

week are made for outside sales forces, engineers, repair shop crews, 

electricians, and other specified nonproductive employees. 

HOME WORK -

Considerable home work has existed in this industry. Members 

of the industry were desirous of eliminating home work after acertain specified adjustment period, believing the elimination of home 

work to be the first step in the effective enforcement of the labor 

provisions of the Code. It is accordingly provided in Article IV 

that no member of the indust:r;y shall give out work to be done in 
471 

homes on and after June 15, 1934. Adequate provision is made for 

the control of homework prior to that date with a view to making 

certain that immediate progre~s is made looking toward the eventual prohibition of homework. 

CHILD LABOR 

By Article IV of the Code, no person under sixteen (16) years of 

age may be employed in the industry and no person under eighteen 

(18) years of age may be employed in dangerous or hazardous 

occupations. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter: 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of 

industry for the purpose of cooperative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervision, by 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 unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees, and is not classified by me as a major industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of Title I of the Act, including without limitation 

Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant group is 

an industrial group truly representative of the aforesaid Industry; 

and that said association imposes no inequitable restrictions on 

admission to membership therein. 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. · For these reasons this Code has been approved. 

Respectfl}lly, 

MARCH 24, 1934. 

HUGH s. JOHNSON' 

.AdministratO'I'. 
CODE OF FAIR COMPETITION FOR THE MEN'S 

NECKWEARINDUSTRY 

Pwrposes.-To effect the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a 

Code of Fair Competition for the Men's Neckwear Industry, and 

shall be the standard of fair competition for such industry and shall 

be binding upon every member thereof. 

ARTICLE I-DEFINITIONS 

1. The term " industry " as used herein includes the manufacture 

and sale by the manufacturer, contractor or jobber of men's and 

boys' neckwear ( excluding knitted and leather ties) . . 2. The term "member of the industry " includes, but without 

hmitation, any individual, partnership, association, corporation, or 

other person engaged in this industry, either as an employer or on 

his own behalf. 

3. The term "employee", as used herein includes anyone engaged 

in the industry in any capacity, receiving compensation for his services, irrespective of the nature or method of payment of such 

compensation. 

4: The term " employer " as u~ed herein includes anyone by whom 

any such employee is compensated or employed. 

5. The terms "President", "Act", and "Administrator" as used 

herein shall mean respectively. the President of the United States, 

Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

6. The term "Southern Section of the United States" as used 

herein shall include the States of Alabama. Arkansas, Florida, 

Georgia, Louisiana, Mississippi, New Mexico. North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. 

7. The term "manufacturer" as used herein includes, without 

limitation thereto, all those who manufacture products in the industries from their own material, in a factory or establishment maintained and operated by them. 

8. The term "jobber " as used herein includes without limitation 

thereto all those for whom 3:nd/ or under whose direction or orders 

products in the industries are manufactured, in whole or in part, 

by contractors and/ or other manufacturers, and who also act as 

wholesale distributors of such products. 

9. The term " contractor " includes without limitation thereto, 

all those who manufacture products in the industries from material 

provided for them by manufacturers, jobbers, or others. 

ARTIOLE II-HOURS 

1. Except as hereinafter provided, no employee shall be permitted 

to work in excess of thirty-six (36) hours in any one week, except 

(472) 
473 

that employees may be permitted to work four ( 4) hours overtime 

per week for a period not in excess of eight ( 8) weeks during each 

six months period of each calendar year, wherever, a manufacturer 

cannot supply his needs by employment of unemployed neckwear 

workers in his community. Such six-months periods shall commence 

on January 1 and July 1 of each calendar year. 

All members of the industry who permit employees to work overtime in accordance with the provisions of this Section shall immediately report to the Code Authority the number of workers so 

employed and the factors that have made overtime employment 

necessary. 

2. The n1aximum hours fixed in the foregoing Section shall not 

apply to outside sales forces, engineers, repair shop crews, electricians, firemen, watchmen, shipping help, janitors, charwomen, 

scrub-women and others similarly employed, and outside crew 

other than those engaged in manufacturing operations, provided, 

that any employee as enumerated above who works in excess of 

forty ( 40) hours in any one week shall be paid for such excess hours 

at a rate equal to the normal hourly wage rate, based upon a forty 

( 40) hour week. The Code Authority shall within ninety (90) 

days of the effective date, report to the Administrator with recommendations concerning the maxin1um hours which should be worked 

by any of the foregoing classes of employees, so that the Code 

Authority may determine whether this provision shall be changed, 

subject to the approval of the Administrator. 

3. No office employee shall be permitted to work in excess of forty 

( 40) hours in any one week, except that such employees may be permitted to work a maximum of five (5) hours oYertime p~r week for 

a period of not to exceed eight weeks during each six-months period 

of each calendar year, and provided further that all such overtime 

be paid for at the regular hourly rate. Such six-months periods 

shall commence on January 1 and July 1 of each calendar year. 

4. The maximum hours fixed in the foregoing Section shall not 

apply to employees engaged in an executive or supervisory capacity, 

nor to :foremen not engaged in any productive operations when such 

empl<>yees are earning $35.00 per week or more. · 5. No employer shall knowingly permit any employee to work 

for any time which when totaled with that already performed with 

another em:(Jloyer, or employers, in this industry exceeds the maximum permitted herein. 

6. Any employer who does the work of an employee shall be sub- ject to the provisions of this Code as to hours of labor. 

AnnCLE III 1-,v AoEs 

1. Except as hereinafter provided, no employee shall be paid at 

less than the rate of $13.00 per week of thirty-six (36) hours. No 

employee employed in the Southern Section of the United States 

shall be paid at less than the rate of $12.00 per week for thirty-six 

(36) hours. 

1 See paragraph 3 of order approving this Code. 

48726°-425-144-34-2 
474 

2. This Article establishes nun1mum rates of pay which shall 

apply, irrespective of whether an employee is actually compensated 

on a time rate, piece work or other basis. 

3. 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 

instructions of the United States Department of Labor in issuing 

certificates to such persons. 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 niaximum hours of work for 

such employee. 

4. Apprentices shall receive at least the regular piece work rate,a 

provided for herein, provided, however, that all employees employed 

as apprentices are paid at not less than the rate of Ten Dollars 

($10.00) per week of thirty-six (36) hours; and provided, further, 

that at no time shall the total number of apprentices in the employ 

of any one employer exceed 10% of such employer's total number 

of employees. The period of apprenticeship shall be strictly limited 

to eight ( 8) weeks. 

5. The following schedule of minimum piece rate wages shall be 

standard for the industry and, except as hereinotherwise provided, 

no member of the industry shall pay less than the following rates: 

Hand-made ties, hemmed : Per dozen 

Hemming _______________ $0.13 

Piecing________________ . 03 

Slip stitching___________ . 45 

Piecing pressing ________ . 03 

Pressing______________ .10 

Hand-made ties, lined: 

Sewing margin lining __ _ Piecing ________________ _ Turning pockets _______ _ 

Pressing pockets _______ _ Slip stitching __________ _ 

Piece pressing _________ _ 

Pressing ______________ _ 

Machine-made pocket, lined : 

Opera~i1;1,g: Lm1ng _____________ _ 

Piecing ____________ _ Running up _______ _ 

P ocket turning _________ _ Pocket pressing ________ _ 

Piecing pressing _______ _ Pressing _______________ _ Turning _______________ _ 

Machine-made margin 2-piece 

shape: 

.20 

.00 

.04 

.04 

.45 

.03 

.10 

. 0975 

. 0325 

.,0775 

.0275 

. 0275 

. 0'275 

.08 

.08 

Piecing pressing ________ . 0275 

Sewing lining___________ . 1825 

Piecing________________ . 0325 

Running up ____________ . 085 

Machine-made margin 2-piece 

shape--Continued Per dozen 

Turning a n d pressing pockets __________________ $0.075 

Turning________________ . 085 

Pressing _______________ . 085 

Neck stitching__________ . 0325 

:Machine-made unlined 2-piece 

shape: Hemming _____________ _ Piecing ________________ _ 

Running up __________ _ 

Piecing pressing _______ _ Turning _______________ _ 

Pressing ______________ _ 

Neck stitching _________ _ 

French tie: 

.0975 

.0325 

.075 

.0275 

.08 

.08 

.0325 

Se~~g _points_ and p:~ ) . 10 

Running up with stay __ _ Turning ______________ _ Pressing _______________ _ 

Press joints and joinings_ 

General: 

.05 

.05 

.02 

Wide hemming, one side_ . 0325 

Wide hemming, b o th sides ________________ _ 

T.ackers _______________ _ 

Label sewers __________ _ 

.055 

.0325 

. 0425 

Where rates for operations or for styles not covered by the above 

classifications, become necessary, the Code Authority, subject to the 
475 

approval of the Administrator, shall establish proper minimum rates 

consistent with the above. Pending the adoption of piece rates for 

styles not-eovered by this Code, members 'of the industry shall adopt 

piece rates for the manufacture of such styles consistent with the 

rates contained in this Code. 

If the total direct labor cost to any member of the Industry for 

the manufacture of each item under the provisions of this Code is 

equal to, or greater than, the total direct labor cost, calculated in 

accordance with the piece-work rates above indicated, for the operations actually performed by such member of the Industry on such 

item, then such member shall be deemed to have complied with the 

provisions of this Section. 

6. No cutter shall be paid at less than the rate of thirty-five dollars 

($35.00) per week. 

7. Female employees performing substantially the same work as 

male employees shall receive the same rate of pay as male employees. 

8. (a) Where an employer is bound by the terms of a collective 

agreement, concluded prior to the date of approval of this Code, to 

pay other minimum or piece-rate wages higher than those set forth 

1n Article III, Section 1 to 6 inclusive, or to observe other hours 

lower than those provided in Article II of this Code, nothinO' contained in this Code shall be deemed to replace the terms of such 

collective agree1nent, unless said agreement is changed by mutual 

consent. In no case shall such changes result in wages lower than 

those prescribed in Article III, Sections 1 to 6 inclusive, or in hours 

longer than those prescribed in Article II. 

(b) Any agreement between employers and employees made in 

accordance with the National Industrial Recovery Act may fix other 

wages and hours than those set forth in this Code, provided that 

no such agreement may fix maximum hours in excess of those provided in this Code or minimum piece-rates and wages lower than 

those provided in this Code. 

None of the provisions of this Article shall be construed or applied in such manner that the minimum wages provided herein become maximum wages, and the duties delegated to the Code Authority shall include a report with respect to the question of whether 

the -!Ilinimum wages provided herein are in fact tending to become 

maximum wages. 

( c) In no case shall piece-rates and/or hour rates that were being 

paid on October 6, 1933, in excess of the minimum provided by this 

Code be reduced, except upon mutual consent between the employer 

and his employees, and the approval of the Administrator. 

( d) In every neckwear plant in the industry the employer shall 

post copies of Article III, Section 8 ( c), together with the piecerates above the minimum piece-rates in the Code, prevailing in such 

plant on October 6, 1933, and each employer shall also file with the 

Code Authority an identical list of such piece-rates prevailing in 

such employer's plant on October 6, 1933. 

9. (a) Changes in the piece-rates or week work rates set forth in 

Article III, Sections 1 to 6 inclusive, may be made upon the recommendation of the Code Authority and approval of the Administrator 

after such notice and hearing as he may prescribe. 
476 

(b) The Administrator, upon recommendation of the Code Authority may, after such public notice and hearing as he may deem 

necessary, approve other piece work rates, week work rates and/or 

methods of compensation than contained in this Code for members of 

the industry who can justify such action and establish that they will 

not obtain an unfair competitive advantage thereby. 

ARTICLE IV-GENERAL LABOR PROVISIONS 

1. On and after June 15, 1934 no home work shall be permitted by 

members of the Industry. Prior to that date no member of the 

Industry shall: ( 1) Increase the number of home workers employed 

by him or make any replacements of home workers. (2) Fail to list 

with the Code Authority within ten (10) days after the effective 

date, the names and addresses of all home workers employed by him. 

(3) Employ any home worker on a piece rate basis less than that 

provided for in the Code for same or similar operations. ( 4) Issue 

home work except directly to the individual who performs the productive operations thereon. 

2. No person under sixteen (16) years of age shall be employed 

in the industry. No person under eighteen (18) years of age shall 

be employed at operations or occupations which are hazardous in 

nature or detrimental to health. The Code Authority shall submit 

to the Administrator before June 1, 1934, a list of such occupations. 

In any State an employer shall be deemed to have complied with 

this provision if he shall have on file a certificate or permit duly 

issued by the authority in such State empowered to issue employment or age certificates or permits, showing that the employee is of 

the required age. 

3. (a) Employees shall have the right to organize and bargain 

collectively, through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collectively bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union, or to refrain 

from joining, organizing, or assisting a labor organization of his own 

choosing. 

( c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

4. Every employer shall provide for the safety and health of his 

employers at the place and during the hours of their employment. 

Standards for safety and health shall be submitted by the Code 

Authority to the Administrator within six (6) months after the 

effective date of this Code. 

5. No provisions in this Code shall supersede any law within any 

State which imposes more stringent requirements on en1ployers as to 

age of employees, wages, hours of work, or as to safety, health, or 

sanitary conditions, or insurance, or fire protection, or general working conditions, than are imposed by this Code. 
477 

6. Each member of the industry shall be furnished, by the Code 

Authority, with official copies of the provisions of this Code relating 

to hours of labor, rates of pay, and other conditions of employment. 

Such official copies of such provisions shall contain directions for 

filing complaints of violations of such provisions, and shall be kept 

conspicuously posted at all times by such members of the industry 

in each shop, establishment or separate unit, to the extent necessary 

to make them freely accessible to all employees. Whenever any modifications of, or exemption or exception from the Code permits any 

person to pay lower wages, or work his employees longer hours, or 

establish conditions of employment less favorable to his employees 

than those J?rescribed by the provisions contained in such official copy 

of the provisions of this Code, the Code Authority, on the request of 

such person, shall furnish him with certified copies of such 1nodifications, exemption or exception in sufficient number for posting along 

side of such official copies of Code Provisions. No member of the 

Industry shall display or furnish any incorrect copies of such provisions, directions, modificat~ons, exemptions or exceptions. Nothing 

in this section shall be construed to relieve any member of the industry from compliance with the requirements of Article III, Section 8 

(d) hereof. 

ARTICLE V-ORGANIZATION, POWERS AND DUTIES OF THE CODE 

AUTHORITY 

1. There shall forthwith be constituted a Code Authority consisting 

of: 

A. Nine (9) representatives of the industry or such other number 

as may be approved from time to time by the Administrator to be 

selected as hereinafter provided. 

B. One representative without vote to represent Labor to be appointed by the Administrator upon the nomination of the Labor 

Advisory Board. 

C. Such additional members without vote not to exceed three, as 

the Administrator may appoint to represent such groups or such 

interests or such governmental agencies for such periods, as he may 

designate. 

2. The industry members of the Code Authority shall be selected 

as follows: 

Four (4) of the members representing the Industry shall be 

selected by the Men's Neckwear Manufacturers of New York City, 

from among members of the Industry located in New York City; 

and five ( 5) members shall be selected by members of the Industry 

located outside of the city of New York. The nine (9) members of 

the Industry so selected, and the method of their selection sha11 be 

certified to the Administrator by the Men's Neckwear Institute of 

America, Inc., as members of the Code Authority. 

3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall 

(1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its Articles of Association, 

By-Laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, 
478 

and activities as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

4. In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority, or 

any sub-Code Authority. 

5. If the Administrator shall determine that any action of a code 

authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Administrator may require that such 

action be suspended to afford an opportunity for investigation of the 

merits of such action and further consideration by such code authority or agency pending final action which shall not be effective unless 

the Administrator approves or unless he shall fail to disanprove 

after thirty days' notice to him of intention to proceed with such 

action in its original or modified form. 

6. Members of the industry shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by assenting to and 

complying with the requirements of this Code and sustaining their 

reasonable share of the expenses of its administration. Such reasonable share of the expense of administration shall be determined 

by the Code Authority, subject to review by the Administrator, on 

the basis of volume of business and/ or such other factors as may 

be deemed equitable. 

7. Nothing contained in this Code shall constitute the members of 

the Code Authority partners for any purpose. Nor shall any member of the Code Authority be liable in any manner to anyone for any 

acts of any other member, officer, agent, or employee of the Code 

Authority. Nor shall any member of the Code Authority be liable 

to anyone for any action or omission to act under the Code, except 

for his own wilful misfeasance or non-feasance. 

8. The Code Authority shall have the following powers and duties 

to the extent permitted by the Act. 

(a) To adopt by-laws and rules and regulations for its procedure 

and for the administration and enforcement of the Code, in accordance with the powers herein granted, and to submit the same to the 

Administrator for his approval, together with true copies of any 

amendments or additions when made thereto, minutes of meetings 

when held, and such other information as to its activities as the 

Administrator may deem necessary to effectuate the purposes of the 

Act. 

(b) To obtain from members of the industry as soon as the 

necessary readjustments within the industry can be made, reports 

based on periods of one, two or four weeks, or multiples thereof, for 

use of the Code Authority and the Administrator in the administration and enforcement of the Code, and for the information of 

the President, and to give assistance to members of the industry in 

improving methods, or in adopting a uniform system of accounting 
479 

and reporting. All individual reports shall be kept confidential and 

only general summaries thereof may be published. 

(c) To receive complaints of violations of this Code, make investigations thereof, provide hearings thereon and adjust such complaints, and bring to the attention of the Administrator for prosecution, recommendations, and information relative to unadjusted 

violations. The application of this section shall at all times be 

subject to rules and regulations which may be issued by the • 

Administrator. 

( d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

therein and to pay such trade aEsociations and agencies the cost 

thereof, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that such 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. 

( e) To coordinate the Administration of this Code with such 

other Codes, if any, as may .be related to the industry, or any subdi vision thereof, and to delegate to any other administrative authority such power as will promote joint and harmonious action upon 

matters of common interest. 

( f) To secure an equitable and proportionate payment of the expense of maintaining the Code Authority and its activities from 

those members of the industry who accept the benefits of the activities of the Code Authority or otherwise assent to this Code. 

(g) To cooperate with the Administrator in regulating the use 

of the N.R.A. Code Insignia solely by those employers who have 

agreed to, and are complying with, this Code. 

(h) To establish or designate an agency on planning and fair 

practices which shall cooperate with the Code Authority 111 developing fair inter- and intra-trade practices and "industrial planning, 

including the regulation of employment and stabilization of empl<Jyees for the industry. 

(i) To initiate, consider and make recommendations for the modificat10n or amendment of this Code. 

(j) To designate three representatives, who, together with one 

designated by the Labor Advisory Board to represent Labor, shall 

constitute a rate committee, which committee shall report to the 

Code Authority with respect to the provisions of Article III, Section 5. Recommendations of such Rate Committee sha-11 become 

effective as a purt of this Code upon the recommendation of the 

Code Authority and the approval of the Administrator after such 

notice and hearing as he may prescribe. 

(k) To cause to be formulated an accounting system and methods 

of cost finding and/or estimating capable of use by all members of 

the industry. After such system and methods have been formulated 

and approved by the Administrator, full details concerning them 

shall be made available to all members. Thereafter all members 

shall determine and/or estimate costs in accordance with the princi pies o~ such methods. 

9. In addition to the information required to be submitted to the 

Code Authority as set forth in this Article, there shall be furnished 
• 

480 

to government agencies such statistical information as the Administrator may deem necessary for the purpose recited in Section 3 (a) 

of the National Industrial Recovery Act. Nothing in this Code 

shall relieve anyone of any existing obligation to furnish repor~ to 

government agencies. 

ARTICLE VI-TRADE PRACTICE RULES 

The following practices constitute unfair methods of competition 

for the members of the industry and are prohibited: 

1. (a) To induce a breach of contract or agreement between nny 

member of the industry and his customers or between any member 

of the industry and any other person with respect to materials, purchases or sales. 

(b) To secure or attem:pt to secure, directly or indirectly, from 

employees of a competitor mformation concerning exclusive methods 

of operation, style, desirrns or patterns. 

2. (a) To allow purcfiasers or offer or make any allowance to any 

purchaser of any secret commission, bonus, rebate, refund_, credit, unearned discount; or subsidy of any kind, whether in the form of 

money, services, advertising allowances or any other thing of value; 

or the giving of premiums, except such articles as are commonly 

used for advertising purposes. 

(b) To give, permit to be given or offer to give, anything of value 

for the purpose of influencing or rewarding the action of an 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 party7 without the knowledge of such employer1 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 hereinabove defined. 

3. (a) To sell irregulars or seconds as firsts with the intent- or 

effect of deceiving the purchaser or the ultimate consumer. 

(b) To fail to place on neckwear not of first quality such markings 

as may be directed bl the Code Authority indicating such neckwear 

as either" irregular' or" seconds'' on some portion of the neckwear 

where it can be seen by a purchaser. 

( c) To ship or deliver neckwear which does not substantially conform in quality and value with the sample submitted, or representation made prior to the securing of the order without the knowledge 

or consent of the purchaser to such substitutions. 

( d) To sell neckwear marked or branded falsely with the effect of 

misleading or deceiving purchasers or the ultimate consumer with 

respect to price, quality, quantity, grade, substance, origin or value 

of merchandise. 

( e) To desi~nate material or content on any neckwear unless it 

represents a suostantial portion of the fabric of such neckwear. 

4. To loan or send on memorandum any display strips. 

5. (a) To imitate trade-marks, trade-names, slogans, or other 

marks of identification of competitors, having a tendency to mislead 

or deceive the ultimate consumer. 

(b) To misrepresent facts with respect to a competitor or his product in any material respect. 
481 

6. To guarantee purchasers against loss resulting from price declines. 

1. To accept the return of neckwear from any purchaser on the 

ground of faded color or for any other reason as to quality, design, or 

style except in instances of factory imperfection or defects or noncompliance with the terms of the order. · 8. To grant cash discounts in excess of 7 /10 e.o.m. or 6/10/60 to any 

customer, 

9. To withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

10. To give to any customer any product as a premium for the :purchase of products of this Industry, except as provided in Sections 

2 (a) and 2 (b) of this Article. 

11. (a) To accept orders which do not contain a final delivery date 

which shall be within nine (9) months of the date of the order. 

(b) The Code Authority shall initiate investigations and conferences with a view to making recommendations to the Administrator 

respecting a uniform sales cpntract. 

12. To sell goods on other terms than f.o.b. city of origin. Delivery 

charges prepaid by the manufacturer shall be added to the cost of the 

goods to the buyer in the invoice. Nothing in this provision shall 

prevent free local deliveries. 

13. To ship goods on consignment, memorandum or guaranteed 

sale, except under circumstances to be defined by the Code Authority 

where peculiar circumstances of Trade require the practice. 

14. To sell' any merchandise below his own individual cost. However, any member may meet the price competition of anyone whose 

costs under the provisions of this Code are lower. For the purposes 

of this provision, cost shall be determined in accordance with the 

principles enumerated in such cost accounting system as is adopted 

by the Code Authority pursuant to Article V, Section 8 (k) hereof. 

(b) Defective goods known in the trade as "irregulars", "imperfects " or " seconds " may be sold at less than cost, provided, 

however, that such merchandise when sold shall be plainly and 

visibly marked on each necktie and invoice. 

(c) Goods discontinued .from the line of the respective member 

of the industry, and therefore no longer manufactured by such member, may be sold at less than cost, provided that such goods are clearly 

designated as "closeouts" in the sale and invoicing thereof. 

{d) The Code Authority shall submit to the Administrator within 

six (6) months after the effective date of this Code, a plan for regulating the disposal of distress merchandise in a way to secure the 

protection of members of the industry and to promote sound and 

stable conditions in the industry. Such recommendations, upon 

the approval of the Administrator after such notice and hearing 

as he may prescribe, shall become a part of this Code and be binding on all the members thereof. 

ARTICLE VII-MomFICATION 

1. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of sub-section (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, 
482 

approval, license, rule, or regulation issued under Title I of the 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 

imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may 

be modified on the basis of experience or changes in circumstances, 

such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become 

effective upon approval of the President. 

ARTICLE VIII-MONOPOLIES, ETC. 

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. 

ARTICLE IX-PRICE INCREASES 

'\,Vhereas the policy of the Act to increase real purchasing power 

will be made impossible of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price 

increases except such as may be required to meet individual cost 

shall be delayed. But when made, such increases should, so far 

as possible, be limited to actual additional increases in the seller's 

costs. 

ARTICLE X-EFFECTIVE DATE 

This Code shall become effective upon the second Monday after 

its approval by the President. 

Approved Code No. 363. 

Registry No. 24S-1--02. 

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