Approved Code No. 299 Registry No. 1716-01

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

ACADEMIC COSTUME

INDUSTRY

AS APPROVED ON FEBRUARY 19, 1934

*R

MEMBER

U.L.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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Approved Code No. 299

CODE OF FAIR COMPETITION

FOR THE

ACADEMIC COSTUME INDUSTRY

As Approved on February 19, 1934

ORDER

APPROVING CODE OF FAIR CoMPETITION FOR TIlE ACADEMIC COSTUME

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 Academic Costume Industry, and hearings

having been duly held thereon and the annexed report oil 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 plirposes of said Title of said Act; and do hereby order that said Code

of Fair Competition be and it is hereby approved.

HUGI S. JOHNSON,

Administrator for Industrical Rcove y.

Approval recommended:

A. D. WHITESIDE,

Division Administrator.

WASHINGTON, D.C.,

February 19, 1934.

41085--37G-110--34 (209)
REPORT TO THE PRESIDENT

The PRESIDENT,

The White House.

SIR: Public hearing on the Code of Fair Competition for the

Academic Costume Industry as proposed by the National Guild of

Academic Costumers was conducted in Washington on October 18,

1933. Every person who requested an appearance was fairly heard

in accordance with statutory and regulatory requirements. The

Code has the approval of the Labor, Industrial and Consumers'

Advisory Boards of the National Recovery Administration and of

the Legal Division. The Chairman of the Code Committee of the

submitting association, upon authorization of the Committee, has

also indicated his approval of the final draft of the Code on behalf

of the industry.

DEfCRIPTION OF THE INDUSTRY

The industry, as defined in the Code, includes the manufacture,

sale and rental of caps, gowns and hoods for use in schools and colleges, and the manufacture, sale and rental of clerical, choir and

judicial robes.

The manufacture and rental of academic costumes comprise about

90% of the total industry and of this business fully 80% entails only

the rental of caps, gowns and hoods. The manufacturing phase of

the industry is therefore of minor importance and it may be construed

almost entirely as a service operation.

RESUME OF THE CODE

Article I sets forth certain definitions.

Article II stipulates a maximum forty hour week for employees

engaged in the mechanical processes of manufacture, forty-eight

hours a week for janitors and watchmen, and a forty-four hour week

for all other employees except that overtime is permitted as necessitated by the peculiar condition of the industry which is concentrated

in about a ten week period from the middle of April to the end of

June.

Article III sets minimum wages of $14 per week for manufacturing

employees and for all other eimplovees in cities of 250,000 population

and over and $12 Per, week in cities or places of less than that

popilaItion.

A rticle IV Prohibits child 1)1bor anHd co)nta ins the labor pr visions

mniiu(atory unler the Act.

Article V p1r(ovi dvs for ithe establishilient of a Code Aiutho rity by

the N;diowl Guild (f Avadeiiiic Costmuiiers and the Administrator.

It mowers tie C()e Anthiority to collect statistics of the industry,

tV Iprvide for Liri r pil ra(t c&s, to enforce the provisiolis of the

Code. 1( ruopi'ur:lte w\ith the Adhuinistiator ill regulating the use of

(210)
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an N.R.A. insignia or label and to make recommendations for

representative costs below which products of the industry shall not

be rented or sold.

Article VI provides for the use of an N.R.A. label on garments

or containers for the purpose of informing customers of conditions

under which products of the industry are manufactured or distributed.

Article VII prohibits trade practices which in the past have

greatly injured the industry.

Article VIII states the method of modifying or amending the

Code.

Article IX prohibits monopolies or discrimination against small

enterprises.

Article X recognizes the purpose of the National Recovery Act

to increase real purchasing power and provides that price increase

shall be limited to actual additional increases in costs.

Article XI provides for the application of the Code to persons

employed on the products of the industry although employed by firms

engaged in other lines of business.

Article XII states the effective date of the Code.

POSSIBLE REEMPLOYMENT

The Academic Costume Industry employed more people during

1933 than during 1928. The reduction of hours provided for in the

Code will probably increase employment about 20% and the increasing trend toward the use of caps and gowns in secondary schools

will probably provide a still greater increase in employment.

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 said Title of said Act, including without limitation
212

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 group 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 the Code has been approved.

Respectfully,

HUGH S. JOHNSON,

Administrator.

FEBRUARY 19, 1934.
CODE OF FAIR COMPETITION FOR THE ACADEMIC

COSTUME INDUSTRY

PURPOSES

To effectuate the policies of Title I of the National Recovery Act,

this Code is established as a Code of Fair Competition for the

Academic Costume Industry, and shall be the standard of fair

competition for this Industry and shall be binding upon every

member thereof.

ARTICLE I-DEFINITIONS

1. The term " Industry " as used herein includes the manufacture,

sale, or rental of caps, gowns and hoods for use in schools and

colleges, and the manuifacture, sale, or rental of clerical, choir, and

judicial robes.

2. The term " Member of the Industry " as used herein includes,

but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the Industry, either

as an employer or on his own behalf.

3. The term " employee " as used herein includes any and all

persons engaged in the Industry, however compensated, except a

Member of the Industry.

4. The term " employer " as used herein includes any one for

whose benefit, or on whose business such employee is engaged in said

Industry on his own behalf.

5. The terms "Administrator " and "Act " as used herein shall

mean respectively the Administrator for Industrial Recovery and

Title I of the National Industrial Recovery Act.

6. Population for the purposes of this Code shall be determined

by reference to the Federal Census of 1930.

ARTICLE II-HOURs OF LABOR

1. No employee engaged in the mechanical processes of inanufacture shall be permitted to work more than forty (40) hours in any

one week.

2. No clerical, office, store, or warehouse employees nor other

employees not included within the provisions of Sections 1, 3, 4

and 5 hereof, shall be permitted to work in excess of forty-four (44)

hours in any one week, except that in emergency and other peak

periods, not to exceed ten (10) weeks in any calendar year such

employees may be permitted to work a maximum of forty-eight (48)

hours in any one week, provided, however, that such employees

shall be paid not less than time and one-third the normal rate per

hour for all hours worked in excess of forty-four (44) hours in

any one week.

(213)
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3. No shipping clerk, stock clerk, driver or porter shall be permitted to work in excess of forty-four (44) hours in any one week,

except that this provision shall not apply to such employees during

a period not to exceed ten (10) weeks in any calendar year; provided, however, that such employees be paid not less than time and

one-third the normal rate per hour for all hours worked in excess of

forty-four (44) hours in any one week.

4. No janitor nor watchman shall be permitted to work in excess

of forty-eight (48) hours in any one week.

5. The provisions of this Article shall not apply to employees engaged in executive, managerial, or supervisory capacity and receiving thirty-five dollars ($35.00) per week or more, or to outside

salesmen.

6. No overtime beyond that therein provided for shall be permitted, except upon the authorization of the Code Authority, under

such conditions and upon such terms as the Administrator may

prescribe. 7. No employee shall be permitted to work for a total number of

hours in excess of the number of hours prescribed for such week and

day, whether employed by one or more employers.

8. No work shall be carried on in homes or tenement houses, or in

unsanitary buildings, or in buildings unsafe on account of fire or

dangerous to health.

ARTICLE III-WAGES

1. No employee engaged in mechanical processes of manufacturing

shall be paid at less than the rate. of $14.00 per week of forty (40)

hours.

2. No clerical, office, store, warehouse or other employee, not included within the term of the foregoing Section, shall be paid at

less than the rate of $14.00 per week when employed in cities of

250,000 population or over, nor less than at the rate of $12.00 per

week when employed in cities or places of 250,000 or less.

3. No employee whose normal full time weekly hours for the four

weeks ending on the effective date of this Code are reduced by less

than 20' shall have his full time weekly earnings reduced. Employeves whose full time weekly hours are reduced by more than said

20 ,' shall have the said earnings equitably adjusted.

All adjustments of wage rates made in accordance with this provision shall be reported to the Code Authority within thirty (30)

days of the effective date of this Code. The Code Authority shall

have the power to investigate and adjust complaints arising under

this provision. Adjustments by the Code Authority modifying previous adjustments shall be subject to review by the Administrator.

4. Tbis Article establishes minimum rates of pay which shall

ap[ly' N, irrespective of whether ain employee is actually compensated

on a timtie rate, piece work or other basis. This Article and Section

shall not apply to outside salesmenl.

r). Clean. sanitary, light, iealthfiil and safe working conditions

shall be provided for all t'mldoyees.
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ARTICLE IY-GENERAL LABOR PROVISIONS

1. 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 in operations or occupations which are hazardous in nature or dangerous to health. The Code Authority shall submit to

the Administrator not later than fifteen (15) days after the effective

date a list of such operations or occupations. In any state an employer shall be deemed to have complied with the provisions as to

age 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 permit showing that the employee is of the required age.

2. (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 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, and

(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.

3. No employer shall reclassify employees or duties of occupations

performed for the purpose of defeating the provisions of the Act

or of this Code.

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

State which imposes more stringent requirements on employers 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.

5. All employers shall post complete copies of Articles I, II, III, IV, and V of this Code in conspicuous places accessible to employees.

ARTICLE -ADMINISTRATION

1. (a) There shall forthwith be constituted a, Code Authority consisting of seven (7) or more members, to be selected in the following

manner:

Seven (7) members shall be selected by the National Guild of

Academic Costumers. In addition thereto the Administrator may

appoint not more than three (3) additional members without vote

and without expense to the Industry, to represent such groups or

interests or such governmental agencies as he may designate. Such

members shall receive notice of and may sit at all meetings of the

Code Authority.

(b) 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, to-
21G

gether with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate

the purposes of this Act.

(c) 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.

(d) An appeal from any action of the Code Authority affecting

the rights of any person subject to this Code may be taken to the

Administrator.

(e) 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 expenses of administration shall be determined by the Code Authority, on the basis of volume of business

and/or such other factors as may be deemed equitable.

(f) Nothing contained in this Code shall constitute the members

of the (ode Authority partners for any purpose. Nor shall any

member 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 action or omission to act under the Code,

except for his own wilful misfeasance or non-feasance.

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

to the extent permitted by the Act:

(a) To adopt by-laws and furnish to the Administrator true and

correct copies of the by-laws and all amendments thereto immediately upon their adoption, together with true and correct copies

of all rules and regulations which may be adopted by the Code

Authority and true and correct minutes of all of its meetings, all

certified to by the Secretary of the Code Authority.

(b) To elect officers and to assign to them such duties as it may

consider advisable, to provide rules for its procedure, and generally

to act as the administrative agency of this Code, in accordance with

the terms of the Act and the principles herein set forth.

(c) To receive, investigate and adjust complaints of violations of

this Code subject to such rules and regulations as may be from time

to timiie promulgated by the Administrator and to make recommiendatioHs based upon such invest igationis to the proper authorities for

the prosec utioni of such violations.

(d) To obtain from niemibers of the Ii industry periodical reports in

such foriml ad at suc11 times with respect to wages, hours of labor,

cond itio1ns of em uiploym ent, niimiiber of ipii)loyees, anid such other matters pertimwmit to the pIiposes of this ( ode as the C(ode Authority

miay require for the adii iistration and enforcement of this Code,

anid to siibmiit reports to tle Adhinisitrator in such fori and at such
217

times as he may require in order that the President may be informed

as to the observance or nonobservance of this Code and to further

effectuate the policies of the Act.

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

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

herein, and to pay such agencies the cost thereof; provided, that

such agencies shall at all times be subject to and comply with the

provisions of this Code; and provided further that nothing herein

shall relieve the Code Authority of any of its duties and responsibilities thereunder.

(f) To coordinate the administration of this Code with such other

codes, if any, as may be related to the Academic Costume Industry,

or any subdivision thereof, with a view to promoting joint and

harmonious action upon matters of common interest.

(g) To provide ways and means for financing the operation of

said Code Authority and to determine an equitable method of apportioning in the Industry the cost of administering this Code. Money

raised in any manner shall not be used except for the administering

of this Code.

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

of an N.R.A. insignia and an N.R.A. label as hereinafter provided

for.

(i) To make recommendations for fair trade practices including

provisions against selling below cost and otherwise to assist the

Administrator in effecting the purpose of this Code and the Act.

Any such reconunendations upon the approval of the Administrator,

after such hearing and notice as he shall prescribe, shall become a

part of this Code.

(j) To investigate and adopt a uniform system of cost accounting for products manufactured by the Industry which, when so

adopted, shall become a standard for the Industry; except that cost

accounting systems now in use by members of the Industry, which

are substantially the same as the system recommended or which reflect the same basis of establishing costs, may be retained.

(k) To study known costs involved in the renting of products

of the Industry insofar as they are coninon to all firms engaged in

such rental business and, after such study to recommend to the

Administrator the lowest representative cost of such rental service

and after his approval no member of the Industry shall rent below

such representative cost. Such representative cost as above defined

shall, however, be reconsidered and if found advisable, revised from

time to time at reasonable intervals.

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

authority or any agency thereof is unfair or unjust or contrary to

the public interest, the Administrator may require that such action

be suspended for a period of not to exceed thirty days 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 be taken only upon approval by the

Administrator.

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

Code Authority, all members of the Industry shall furnish such ade-
218

quate information as tie Administrator may deem necessary for the

purposes recited in Section 3 (a) of the Act to such federal and state

agencies as the Administrator may designate. Nothing in this Code

shall relieve any one of any existing obligation to furnish reports

to government agencies.

ARTICLE VI-LABELS

All garments manufactured and/or containers for such garments

distributed subject to the provisions of this Code may bear an

N. R. A. label to symbolize to purchasers, or persons renting said

garments, the conditions under which they are manufactured or distributed. Under the powers vested in him by the executive order of

October 14, 1933, and under grant of necessary authority by the

Administrator, the Code Authority shall have the exclusive right

in this Industry to issue and furnish said labels to the members

thereof. Each label shall bear a registration number especially assigned to each employer by the Code Authority, and remain attached

to such garment and/or container. Any and all employers may

apply to the Code Authority for a permit to use such N. R. A. label,

which permit to use the label shall be granted to them, but only if

and so long- as they comply with this Code. The Code Authority, subject to the approval by the Administrator, shall establish rules

and regulations and appropriate machinery for the issuance of labels and inspection and supervision of the practices of employers

using such labels in observing the provisions of this Code for the

ptirpose of ascertaining the right of said employer to the continued

use of said labels; of protecting purchasers in relying on said labels;

of insuring to each individual employer that the symbolism of said

label will be maintained by virtue of compliance with the practices

herein contained by all other employers.

ARTICLE VII-TRADE PRACTICES

The following practices constitute unfair methods of competition

for the members of the Industry and are prohibited:

1. T hle false marking or branding of any product of the Industry

which has the tendency to mislead or deceive customers or prospective customers, whether as to the grade, quality, quantity, substance,

character, nature, origin, size, finish, or preparation of any product

of the Industry, or otherwise.

2. Thie making or causing or knowinigly permitting to be made

or puiblislied ally false, materially inaccurate, or deceptive statement

bv way of advertisement or otherwise, whether concerning the grade,

(IluaIity, quanltity, suIbstalce, characters, niattire, origin, size, finish, or

prep armation of ally prodI ct of the 1 Iimhstrt'y, or the ('credit ter'nms,

vah ites, p(AIicies, or serv'ices of ally m et 'er of th indtl'y, or otherwise, havJi(g the teIldecy or Ca)acity to mi islead o1 deceiNye citstomiiers

01' prtospiet ive etstdm er's.

ol Pi iA, L('it( -0 i(.11"4011)(.1-S. 3. MIrectly ()I in1dir.'ctly to give,( (W 1)(rm1it to be giv en or to ofrer.

to give to 1iY shOOI 0o1 college or to stildenlts, faculty mellime'5, or

ofliaIs tlhIef, e g(owils, ca s' aity, or Ithr gif its wIethier in

the fort , of loney 01 tthe'wisv r the placing of ad(vertisvillments in

'lOI 01' college pllicatioiv 01' the allowatlce of special prices 0)
219

discounts on other merchandise sold or rented by a member of the

industry or his sales representative.

4. Maliciously inducing or attempting to induce the breach of an

existing oral or written contract between a competitor and his

customer or source of supply, or interfering or obstructing the

performance of any such contractual duties or services.

5. The payment or allowance of secret rebates, refunds, commissions, credits, or unearned discounts, whether in the form of money

or otherwise. Nothing in this paragraph shall apply to bona fide

commissions allowed to a sales representative in a school or college

where the account has been handled by a local representative of a

member of the industry prior to August 16, 1933, even though such

representative may be a faculty member, or official of the school or

college. These provisions shall not be construed to prohibit a

general distribution of articles commonly used as advertising, except

so far as such articles are actually for commercial bribery as

hereinabove defined.

6. The defamation of competitors by falsely imputing to them

dishonorable conduct, inability to perform contracts, questionable

credit standing, or by other false representations or by false disparagement of the grade or quality of their goods.

7. The publishing or circularizing of threats or suits for infringement of patents or trade marks or of any other legal proceedings

not in good faith, with the tendency or effect of harassing competitors or intimidating their customers.

8. Securing confidential information concerning the business of

a competitor by a false or misleading statement or representation, by a false impersonation of one in authority, by bribery, or by any

other unfair method.

9. Withholding from or inserting in any invoice or statement

figures which make the invoice or statement a false record wholly

or in part of the actual transaction.

10. Any sale on the installment plan, which gives the purchaser

the privilege of return with cancellation of part of the purchase

price, shall be deemed a rental and shall be subject to the provisions

of this Code.

ARTICLE \III--MODIFICATIONS

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

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the Act, from time to time

to cancel and modify any order, approval, license, rule, or regulation

issued under said Act.

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

modified on the basis of experience or changes ii circumstances,

such modifications to be based upon application to the Administrator

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

effective on the approval of the Administrator.

ARTICLE IX--MONOPOLIES

No provisions of this Code shall be so applied as to permit nionopolies or monopolistic practices, or to eliminate, oppre;.s, Or discriminate against small enterprises.
220

ARTICLE X-PRICE INCREASES

Whereas the policy of the Act to increase real purchasing power

will be made more difficult 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

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

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

costs.

ARTICLE XI-GENERAL

Any employer, who at any time, shall manufacture, sell or rent

any article or articles subject to the provisions of this Code, shall be

bound by all provisions of this Code as to all employees engaged in

whole or in part in such manufacture, sale or rental. In case any

employee shall be engaged partly in such manufacture, sale or rental

and partly in the manufacture, sale or rental of goods of another

character, covered by another approved Code, this Code shall apply

only to such portions of such employee's time as is applied to the

manufacture, sale or rental of articles subject to this Code.

ARTiCLE XII-EFFECTIvE DATE

This Code shall become effective on the second Monday after its

approval by the President.

Approved Code No. 299.

Registry No. 1716-01.

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UNIVERSITY OF FLORIDA

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