Approved Code No. 164 Registry No. 243-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR 

INDUSTRY 

AS APPROVED ON DECEMBER 18, 1933 

BY 

PRESIDENT ROOSEVELT 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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tD) 
Approved Code No. 164 

CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR INDUSTRY 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Code 

of Fair Competition for the Knitted Outerwear Industry, and 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 said act and that the requirements of clauses 

(1) and (2) of subsection (a) of section 3 of the said act have been 

met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of 

the United States, pursuant to the authority vested in me by title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and approve the report, recommendations, 

and findings of the Administrator and do order that the said code 

of fair competition be and it is hereby approved, subject to the 

following condition : 

That all manufacturers of knitted outerwear for infants and 

children, sized from infancy to and including age fifteen, be granted 

a stay from the provisions of this code, until determination by the 

Administrator, after such hearing as he may deem necessary, as to 

whether or not they are to be included in this code. 

Approval recommended : 

HuGHS. JoHNSoN, 

Ad1ninistrator. 

THE 'V HITE HousE, 

Dccmnbe1' 18, 1933. 

FRANKLIN D. ROOSEVELT. 

27645-33 (199) 
DECE IBER 5, 1933. 

The PRE ID ~T, 

The lV hite House. 

Sm: I have the honor to submit and recommend for your approval 

the ode of Fair Competition :for the l(nitted Outerwear Industry. 

'l'hi Code was proposed by the National Knitted Outerwear Association, No. 1 :Madison Ave., New York City. 

The National Knitted Outerwear Association was :founded in 1918 

and represents 55% of the total number of plants in the United 

States and 72% of the total volume. This as ociation is organized 

on a r egional basis, with five separate local associations serving 

regions in all parts of the United States. The association imposes 

no inequitable restrictions on membership. 

The hearing was conducted in the \Villard Room of the "'\Villard 

Hotel in W a hington on October 16 and 17 1933. Every person who 

filed a r eque t for an appearance was fully heard in accordance with 

statutory and reguhttory requirements. 

EVIDENCE SUBMITI'ED 

The Industry comprises approximately 750 plants with an invested capital of approximately $50,000,000. The annual sales :for 

the year 1931 were approximately $112,000,000 as compared to the 

sales in 19'29 of $147,000 000. 

The Industry since August 1, 1933, has been operating under the 

same \\age and hour provisions as contained in the Code and provided under a ubstitute agreement to the President's Reemployment 

Agreement. The application of these wages and hours increased 

the a-ver age '"eekly wage from $13.59 in June and July 1933 to 

$15.93 in Aug ust 1933, an increase of 17%. 

PROVISIONS OF THE CODE 

The CDde p rovides for a minimum wage of 35¢ per hour in the 

Northern section of the Industry and 32lf2¢ per hour in the Southern 

section. 

Productive rnachinery may be operated for two 40-hour shifts per 

week \lith the provi ion that auy employer may elect to operate one 

shift per "~ek and have the privileae of operating 48 hours per week 

for two penocl of 4 consecutive weeks each per year. 

Employees may \\ork not more than 40 hours per week nor more 

than hour per duy, except t hat when an employer elects to operate 

one . hift only, the employee may work not more than 48 hours per 

\leek nor more than 9 hours per day. 

<?fficc mployee may work an average of 40 hours per week over £1, 

penod of any 1:2 week , but may not 'York more than 48 hours in any 

one week. 

(200) 
201 

Overtime above 40 hours per week is to be paid for at the rate o:f 

time and one third. Provision is made for the maintenance of differentials between wages above the minimum. Provisions are made for 

guaranteeing sufficient pay to contractors to cover their wages plus 

a reasonable allowance for the contractor's ov~rhP.::t rl. 

HO:M:E WORK 

IIome work is a major problem in this Industry, due to the wide 

variety of work done and the wide geographical distribution o:f 

the workers. Workers are located in both the Metropolitan centers 

and in country districts in all sections of the United States. 

It is necessary to consider also the conflicting aspects of the 

problem, as represented by the possibility of low wages, long hours.., 

child labor, and unsanitary working conditions on the one hand, and 

the crippled, needy, widowed mothers and difficulty of obtaining 

trained workers on the other hand. 

From the evidence submitted and from independent investigations 

it was evident that more time should be allowed for studv of the 

problem. Accordingly a home-work committee has been provided 

for in the Code to set equitable piece rates and to study the practicability of elimination of home work, insofar as possible. 

INFANT'S AND CHILDREN'S WEAR 

The Infant's and Children's Wear Industry have submitted a Code 

of Fair Competition in which-they seek to include Infant's and Children's knitted outerwear. As the Knitted Outerwear Code al:::;o 

includes Infant's and Children's Knitted Outerwear, a stay is re~ommended for all manufacturers of Infant's and Children's Knitted 

Outerwear until a final determination can be made. 

FINDINGS 

I find that-

( a) This Code complies in all respects with the pertinent provisions of Title I of the National Industrial Recovery Act, includin<Y 

without limitation subsection (a) of Section 7 and subsection (b) of 

Section 10 thereof. 

(b) The National Knitted Outerwear Association is truly representative of the Knitted Outerwear Industry and the Bylaws of this 

Association provide no inequitable restrictions to membership. 

(c) The Code is not designed to promote monopolies or to ('liminate or oppress small enterprises and will not operate to discriminate 

against them, and will tend to effectuate the policy of Title I of the 

National Industrial Recovery Act. 

I recommend that the Code be approved. 

Respectfully, 

HuGH S. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of title I of the National I ndustrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competition for the ICnitted Outerwear Industry, and upon 

approval by the President shall be the standard of fair competition 

for such Industry and shall be binding upon every member thereof. 

ARTICLE I-DEFI~ITION s 

(a) The term " ICnitted Outerwear Industry " as used herein is 

defined to mean the manufacture of knitted outerwear apparel for 

men, women, and children, including infants, andjor the manufacture of knitted fabrics for outerwear purposes, but shall not include 

the products of the hosiery andjor underwear industries andjor the 

manufacture of knitted woolen goods in self-contained woolen mills 

of the wool textile industry as defined in the respective codes of 

these industries and shall not include the manufacture of garments 

made of purchased knitt-ed fabrics. 

(b) The term ' employee" as used herein includes any person 

engaged in any phase of the Knitted Outerwear Industry in any 

capacity in the nature of employee irrespective of the method of 

payment of compensation. 

(c) The term 'employer ' as used herein includes anyone by 

whom any such employee is compensated or employed. 

(d) The term ' productive machinery" as used herein is defined 

to mean all knitting, winding, pre sing (not including the pressing 

of dres es, suits, and coats) and fabric finishing machinery used in 

the Knitted Outerwear Industry. 

(e) The term ' contractor ' as used herein shall include anyone 

who manufactures any of the products of the indu try as above 

defined, in whole or in part, for others who provide the necessary 

raw materials. 

(f) The term ' Act" as used herein refers to the National Indus- trial Recovery Act. 

(g) The term ' Code Authority" as used herein shall refer to the 

Knitted Outer\\ear Industry Code Authority set up in Article IX 

of this Code. 

(h) The term Administrator " means the Admini trator duly 

appointed under the National Industrial Reco\ery Act. 

(~02) 
203 

(i) The term "member of the Industry" as used herein is defined 

to mean every employer, as defined herein, and all firms who use 

contractors or submanufacturers referred to in Article VII hereof, 

and firms in any other related groups as may from time to time be 

included in the Industry by the Administrator upon application of 

the Code Authority. 

(j) The term "cleaner" as used herein means and includes anyone who does janitor service or one who cleans floors, buildings, or 

machinery and does nothing else but clean. 

(k) The term "learner" as used herein means and includes anyone who has worked less than eight (8) weeks in the industry. 

ARTICLE III-HoURs 

(a) No employee in the Knitted Outerwear Industry, except repair-shop crews, engineers, electricians, firemen, supervisors, shipping, watching and outside crews, cleaners, and office employees receiving less than $35.00 per week shall be permitted to work in excess 

of forty ( 40) hours per week, and the hours in each week during 

which any employee shall have worked in other plants and/or in other 

industries shall be included in such forty (40) hours. 

(b) Office employees receiving less than thirty-five dollars ($35) 

per week shall not be permitted to work more than four hundred and 

eighty ( 480) hours in any twelve-week period, an average of forty 

( 40) hours per week, and not more than forty-eight ( 48) hours in 

any one week. 

(c) On or before February 1, 1934, the Code Authority shall prepare and submit to the Administrator suggestions for a schedule of 

maximum hours to apply to those employees excepted under section 

(a) of this Article. 

(d) Employers in the Knitted Outerwear Industry shall not operate productive machinery in the Knitted Outerwear Industry for 

more than two (2) shifts of forty (40) hours each in any week, and 

no other machinery used in the Knitted Outerwear Industry shall 

be operated for more than one (1) shift of forty (40) hours during 

any week; except that any employer may elect by notifying the 

Code Authority to operate all machinery for one (1) shift only, and 

such employer may operate all machinery on a schedule of hours 

of labor for his employees of not more than forty ( 40) hours per 

week except that for t\:vo (2) periods of four ( 4) consecutive weeks 

each, per year, such employer may operate not more than fortyeight ( 48) hours in any one week. 

(e) No employee shall work more than eight ( 8) hours in any 

one day when on a forty ( 40) hour weekly shift nor more than nine 

(9) hours in any one day when on a forty-eight (48) hour weekly 

shift. 

(f) All overtime above forty (40) hours per week shall be paid 

for at the rate of time and one third. 

ARTICLE IV-WAGES 

(a) The minimum wages that shall be paid by employers in the 

Knitted Outerwear Industry to any of their employees, except 

learners, shall be at the rate of t~irty-five cents (35¢) per hour 
204 

when employed in the Northern section of the industry and thirtytwo and one half cents (321j2 ) per hour when employed in the 

Southern section. 

(b) The States of Virginia, Tennessee, Kentucky, North Carolina, 

South Carolina, Georgia, Florida, Alabama, Missi ippi, Arkansas, 

Texa . Louisiana, and Oklahoma shall constitute the Southern section of the Industry. Other states and the District of Columbia 

shall constitute the Northern section. 

(c) The rate of pay for learners shall not be less than seventyfive (75%) percent of the minimum rate and no employer shall include within the category of learners more than one such employee 

for every twenty (20) employees or fraction thereof. 

(d) The weekly compensation for employment now in excess of 

the minimum wages herein provided shall not be reduced, notwithstanding that the hours of work in any such employment may be 

hereby reduced, and piece rates shall be so adjusted that earnings 

at the shorter hours provided in this Code shall be at least equivalent to those obtaining under the longer hours heretofore prevailing. 

(e) The provisions for a minimum wage in this Code shall establish a guaranteed minimum rate of pay per hour of employment, 

regardless of whether the employees' compensation is based on a 

time rate or piecework rate or any other basis. 

(£) Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purposes of the 

Act and of this Code. 

(g) A person whose earning capacity is limited because of age 

or physical or mental handicap may be employed on light work at a 

rate of pay not less than 75% of the minimum rate, provided that not 

more than one (1) employee for every twenty (20) employees or a 

fraction thereof may be placed within this classification, and the 

names and addresses of all such handicapped employees shall be 

reported to the Code Authority. 

ARTICLE V-CHILD LABOR 

No person under sixteen (16) years of age shall be employed in the 

I\:nitted Outerwear Industry, nor anyone under eighteen (18) years 

of age at operations or occupations hazardous in nature or detrimental to health. 

ARTICLE VI-HoME 'v oRrc 

(.a) No Knitted Outerwear products shall be manufactured at 

hom for sale or other commercial purpose e. ·cept that for the 

period of one year after the effective date of this Code hand knittino· (which shall include hand crocheting, hand embroidering, and 

hand ewing together of machine-made parts of garments), will be 

permitted when performed in accordance with regulations and/ or 

piece rate. which may be e tablished as herein provided. 

(b) Anything ontained in Article IV of this Code to the contrary notwith. tanding~ the Admini trator may fix on or before 

January 15, 1934-. after notice to the Code Authority, and may 
205 

change from time to time after like notice, minimum piecework 

rat;.s for any of the operations described in paragraph (a) of this 

Aroo1cle. 

(c) The Administrator shall appoint a Hand-Knitted Division 

Committee of seven, three of whom shall be fairly representative 

of th~ hand-knit manufacturers, three fairly representative of the 

machine manufacturers and recomm-ended by the Code Authority, 

and .one representing the Administrator. This Committee shall report to the Administrator within thirty (30) days after the effective date of this Code or within such further time as may subsequently be allowed by the Administrator or his Deputy, with respect to proper minimum piecework rates and shall make a study of 

and report within six months from the effective date of this Code, 

upon the practicability of discontinuing home work in the Industry 

or setting up a system of control for home workers. 

ARTICLE VII-CoNTRACTING 

All members of the Knitted Outerwear Industrv who use contractors or submanufacturers for knitting or fabricating garments, or 

any part thereof, shall pay such rates to the contractor or submanufacturer as will enable the contractor or submanufacturer to pay his 

employees at least the wages provided for in this Code, together 

with a reasonable allowance for the contractor's overhead. The Code 

Authority shall formulate additional regulations, with the approval 

of the Administrator, to carry into effect the purpose and intent of 

this provision. 

ARTICLE VIII-GENERAL LABOR PROYISIONS 

(a) Employees shall have the right to organize and bargain collectively through repre·sentatives of their own choosing, and shall 

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

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

or in self-organizatiOn or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 

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

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

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

own choosing. 1 

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

minimum rates of pay, maxin1un1. machine-load of employees, and 

other conditions of employment approved or prescribed by the 

President. · (d) 'Vithin each State this Code shall not supersede any laws o£ 

such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, or 

general working conditions than under this Code. 

(e) Each employer shall post in conspicuous places on his premises 

full copies of this Code, in the form prescribed by the Code Authority. 

ARTICLE IX-ADMINISTRATION 

(a) To effectuate further the policies of the Act, a Knitted Outerwear Industry Code Authority is hereby designated to act as the 
206 

representative body from the Industry in the administration and 

enforcement of this Code and shall have in addition to the specific 

powers herein conferred, all general po\\ers necessary to a si t the 

Administrator in such administration and enforcement. 

(b) This Code Authority shall con ist of eight ( 8) representatives of the Knitted Outerwear Industry elected by a fair method 

of selection, to be approved by the Administrator, and not more 

than three (3) members without vote and without cost to the Industry, appointed by the Administrator. Such agency may from 

time to time 12resent to the Administrator recommendation based 

on conditions 1n this industry as they may develop which will tend 

to effectuate the operation of the provisions of this Code and the 

policy of the Act. Such recommendations, when approved by the 

Administrator, shall have the same force and effect as any other 

provisions of this Code. 

(c) Such agency is also set up to cooperate with the Administrator in making investigations as to the functioning and observance 

of any provision of this Code at its own instance or on complaint 

of any person affected, and to report same to the Administrator. 

(d) In addition to the information required to be submitted to 

the Code Authority there shall be furnished to Government Agencies 

such statistical information as the Administrator may deem necessary for the purpose stated in section 3 (a) of the Act. 

(e) Members of the Industry who manufacture Infants' and 

Children's wear up to and including izes for 15-year-old children 

may elect to form a separate group within the industry and shall 

have full rights to autonomy in regard to trade practices. This 

group may either approve the trade practices applying to other 

members of the Industry or separate and distinct trade practices 

may be promulgated and adopted as provided in this Code. 

(f) Members of the Industry shall be entitled to participate in and 

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

complying with the requirements of this Code and sustaining their 

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

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

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

deemed equitable to be taken into consideration. 

(g) The Code Authority will cooperate \\ith the Administrator 

in the establishment of an Advisory Council for all or any group of 

textile industries, for the purpose of considering and advising with 

the Administrator on matters concerning two or more of such industries operating under separate Codes of Fair Competition, and upon 

request and with the approval of the Administrator, appoint to such 

Advisory Council one or more representatives of the l(nitted 

Outerwear Industry. 

ARTICLE X-TRADE PRACTICES 

To accomplish the purpo es contemplated by the Act the following practices are hereby declared to be unfair methods of competition and in Yiolation of this Cocle. 
207 

(a) Selling Beloto Oost.-No me1nber of the Industry shall sell 

any product or service below cost based upon principles of costing 

formulated by the Code Authority and approved by the Administrator, except when necessary to meet competition, to dispose of 

distress merchandise or under other circumstances to be defined by 

the Code Authority. 

(b) Oonsignment.-No member of the industry shall ship goods 

on consignment except under circumstances to be defined by the 

Code Authority, where peculiar circumstances of the Knitted Outerwear Industry require the practice. 

(c) l1fisbranding.-N o member of the Industry shall falsely mark 

andj or brand lmitted outerwear products for the purpose or with 

the effect of misleading or deceiving purchasers with respect to the 

origin, trade marking, quality, yarn content,. or construction of such 

products. 

(d) Misrepresentatio-n.-No member of the industry shall publish 

advertising (whether printed, radio, display ~ or of any other nature) 

which is mislea(hng or inaccurate in any material particular, nor 

shaH any member in any way misrepresent any goods (mcluding but 

without limitation its use, trade mark, grade, quality, quantity,. 

origin, size, substance, character, nature, finish, material, content, 

or preparation) or credit tenns, values, policies, services, or the 

nature or form of the business conducted. 

(e) Terms of Sale.-(l)No member of the Industry shall sell 

or offer to sell knitted outerwear products upon terms other than a 

maximmn discount of three (3) percent to the wholesale trade for 

payment on the lOth day of the month following the designated 

shipping date, or equivalent discount for longer periods. (2) No 

member o:f the Industry shall sell or offer to sell knitted outerwear 

products to the retail trade upon terms other than a maximum 

discount of eight (8) percent for payment on the lOth day of the 

month following that of shipment. For the purpose of these provisions, the 25th calendar day shall be considered the end of the 

month. 

(f) Returns.-N o member of the Industry shall accept the return of garments that have been worn, or merchandise not worn 

but which has been accepted by a customer~ except uncler circumstances to be defined by the Code Authority. 

(g) Rebate.~.-N o Inemher of the Industry shall secretly directly 

offer or make any payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in 

the form of money or otherwise, nor shall a member of the industry 

secretly offer or extend to any customer any special service or privilege not extended to all customer.:; of the sUJne Class, for the purpose of influencing a sale. 

(h) Delive1·y Oharges.-All knitted outer\\ear products shall be 

sold F.O.B. shipping point, except for deliYeries within metropolitan 

areas local to the shipper, subject to exceptions approved by the Code 

Authority. 

ARTICLE XI-STANDARDS 

(a) All standards already formulated in cooperation with the 

Bureau of Standards of the United States Department of Commerce 
208 

and approved by the industry, or standards which shall be so formulated and approved, shall become the standards of the industry. 

The Knitted Outerwear Code Authority shall notify all members of 

the industry and all known interested per on in the industry of each 

new standard adopted, and the effective date thereof. All merchandise manufactured after the effective date shall be plainly aJ:?.d 

visibly marked by a firmly sewed label, "Substandard" where uch 

merchandise comes below the minimum standards. EYery manufacturer shall plainly mark with a stamp or a firmly sewed label the 

size or measurement of his product thereon. 

(b) All garments manufactured or distributed shall bear an 

N.R.A. label, which shall remain attached to such garments. Such 

label shall be in such form as may be prescribed by the Code Authority. The Code Authority shall have the exclusive right in this 

industry to issue and furnish said labels to the members thereof. 

The privilege of using such label shall be granted and such label 

shall be issued to any employer from time to time engaged in the 

industry, upon application therefor to the Code Authority accompanied by a statement of compliance with the standards of operation 

prescribed by and the provisions of this Code. The privilege of 

using such labels and the issuance thereof may be withdrawn and 

cease or may be suspended in respect to any such manufacturer whose 

operations, after appropriate hearing by the Code Authority and 

review by the Admmistrator, shall be found to be in substantial 

violation of such standards and provisions. Employers shall be entitled to obtain and use such labels if they comply with the provisions of this Code. The Code Authority may establish appropriate 

machinery and regulations for the issuance of such labels, inspection, examination, and supervision of employers engaged in the 

industry, in accordance with the foregoing provisions. 

ARTICLE XII-:M o DIFICATION 

(a) This Code and all the provisions thereof are expressly made 

subject to the right of the Pre ident, in accordance with the provisions 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 conditions 

imr.osed by him upon approval thereof. 

(b) This Code, except as to provisions required by the Act, may 

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

such modification to be based upon application to the Administrator 

and such notice and hearing as he shall specify, and to become 

effective on approval of the President. 

ARTICLE XIII-MONOPOLIES 

The prov1s10ns of this Code shall not be interpreted or applied 

to promote monopolies or monopolistic practices or to eliminate 

or oppress small enterprises or to discriminate against them. 
209 

ARTICLE XIV-EFFECTIVE DATE 

This Code shall become effective the second Monday after its 

approval by the President. 

Approved Code No. 16-:l. 

Registry No. 243-1-02. 

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