Approved Code No. 53-Amendment No.2 Registry No. 237-1-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

HANDKERCHIEF INDUSTRY 

AS APPROVED ON OCTOBER 31, 1934 

WE DO OUR PARt 

UNITED STATES 

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Approved Code No. 53-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HANDKERCHIEF INDUSTRY 

As App1·oved on October 31, 1934 

ORDER 

APPROVING AMENDMENT OF CoDE OF FAIR Cm.IPETITION FOR THE 

HANDKERCHIEF INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of amendments to the Code of Fair Competition for the Handkerchief 

Industry, and hearings having been duly held thereon and the 

annexed report on said amendments containing findings with respect 

thereto, having been made and directed to the President: 

NO,V, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, and otherwise; does hereby incorporate, 

by reference, said annexed report and does find that said amendments and the Code as constituted after being amended comply in 

all respects with the pertinent prov1sions and will promote the policy 

and purposes of said Title of said Act, and does hereby order that 

said amendments be and they 'are hereby approved, and that the 

previous approval of said Code is hereby amended to include an 

approval of said Code in its entirety as amended; and 

ORDERS, FURTHER, that th~re shall be created forthwith a 

Special Commission composed of three members, one of whom shall 

be nominated by the Labor Advisory Board of the National Recovery 

Administration, one by the Division Administrator of the Textiles 

Division of the National Recovery Administration).. and one by the 

Code Authority for the Handkerchief Industry. ;::;aid Commission 

shall study and investigate the production of handkerchiefs by means 

of hand sewing and hand embellishment in the home. and shall submit to the National Industrial Recovery Board, within forty (40} 

days from the date hereof, a report containing findings with recommendations for minimum piece work and/or hourly rates for hand 

sewing and hand embellishment in the home, which recommendations1 

upon the approval of the National Industrial Recovery Board, shall 

become effective as part of this Code. Pending the report of said 

947D2°----l325-2----34 (1) 
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Commission and the approval o:f any recommendations thereof by 

the National Industrial Recovery Board, the provisions of Section 

8 (a) of Article IV, of said Code, as amended, shall be stayed, insofar as the provisions of said Section may apply to hand sewing 

and hand embellishment in the home. 

NATIONAL INDUSTRIAL REcOVERY BoARD, 

By G. A. LYNcH, Ad1ninistrative Officer. 

Approval recommended: 

PRENTiss L. CooNLEY, 

Acting Division Administrator. 

wASHINGTON' D. c., 

Octoljer 31, 1931,. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1¥ kite Howse. 

Srn: An application has been duly made pursuant to and in full 

compliance with the provisions of Title· I of the National Industrial 

Recovery Act for certain amendments to the Code of Fair Competi· 

tion for the Handkerchief Industry, and Hearings were conducted on 

said proposed amendments in Washington on April 18, 1934. 

The original Code of Fair Competition for the Handkerchief Industry was approved October 9, 1933. The proposed amendments 

are the result of close observation of the Code in actual operation. 

G-enerally speaking, the amendments constitute no considerable modification of the provisions of the original Code; they seek merely to 

eliminate certain inequalities, to close up certain loopholes which 

have become apparent, to assist in enforcement, and to facilitate administration. Such additions to the original Code as are made herein 

involve, primarily, trade practice provisio.ns, which, in practically 

every case, were referred to in the original Code as subjects upon 

which the Code Authority was to study and make recommendations. 

The primary object of this set of amendments is to consolidate the 

gains achieved by the original Code and to go a little further toward 

placing competition in this Industry on a sound and rational basis. 

The Deputy Administrator in his final report to the National Industrial Recovery Board on said amendments to said Code having 

found as herein set forth and on the basis of all the proceedings in 

this rna tter : 

The National Industrial Recovery Board finds that: 

(a) The amendments to said Code and said Code as amended are 

well designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act, including the removal of 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 

cooperatiYe action among trade groups, by inducing and maintaining 

united action of labor and management under adequate governmental 

sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of 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) The Code as amended complies in all respects with the 

pertinent provisions of said Title of said Act, including but without 

limitations Subsection (a) of Section 3, Subsection (a) of Section 7, 

and Subsection (b) of Section 10 thereof. 

(3) 
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(c) The H andkerchief Industry Association, Inc. was and is an 

industrial association truly representative of the aforesaid Industry 

and that said association imposed and imposes no inequitable restrictions on admission to membership therein and has applied for and 

consents to this amendment. (d) The amendments and the Code a amended are not designed 

to and will not permit monopolies or monopoli tic practices. 

(e) The amendments and the Code as amended are not designed 

to and will not eliminate or oppress small enterprises and will not 

operate to discriminate against them. 

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

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

said amendment. 

For The National Industrial Recovery Board: 

OcTOBER 31, 1934. 

G. A. LYNOH, 

Administrative Officer. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE HANDKERCHIEF INDUSTRY 

Article II, Section 1 is amended by deleting the present section · and substituting therefor the following: 

1. The term "Industry" as used herein means and includes the 

manufacture andjor production of handkerchiefs, in whole or in 

part, by hand or machine, including embellishing and/or finishing 

by hand or by machine, and the sale thereof within the confines of 

the Continental United States by any manufacturer, producer or 

importer or by any firm, corporation or any other form of enterprise 

totally or partly owned or directly or indirectly controlled by any 

manufacturer, producer or importer of handkerchiefs. 

The term shall not include, however, the embellishing of handlrerchiefs by Schiffii embroidery machines, so-called "handloom " rnachines and so-called "hand-embroidery" machines, nor shall it include the manufacture in whole or in part of handkerchiefs in Puerto 

Rico. The term "Industry" as used herein shall, however, mean 

and include the sale within the Continental United States of hand- l~erchiefs manufactured in whole or in part in Puerto Rico or elsewhere outside the confines of the Continental United States. 

Article II, Section 2 is amended by deleting the present section 

and substituting therefor the following: 

2. The term "member of the industry" as used herein shall 

include: 

(a) Handkerchief manufacturers who own or operate their plants 

and whose production is sold, in whole or in part, directly by them or 

through salesmen, agents, or representatives, to the wholesale or 

retail trades ; 

(b) Handkerchief manufacturers owning plants or operating 

plants exclusively on a contract basis for others, in whole or in part 

engaged in the production or finishing of handkerchiefs. 

(c) Those who purchase materials and have same fabricated into 

handkerchiefs, plain or embellished,. by contractors, agents, sub~ 

agents, or individuals within the confines of the United States or its 

insular possessions or territories; 

(d) Those engaged in wholesale distribution who further the 

manufacture of handkerchiefs by any of the following manufac~ 

turing processes, but without limitation: cutting, stitching, ironing, 

folding, pressing, tying, packaging, boxing, embellishing, or other~ 

wise finishing. 

(e) Those engaged in the Handkerchief Industry under more than 

one of the above classifications, or otherwise engaged exclusively or 

in part as employers or on their own behalf. 

(5) 
6 

Add a new Section 9 to Article III : 

9. No employee shall work or be permitted to work in any factory 

on any Saturday or Sunday except such employees for whom specific 

provision is made in this Section and in Sections 6 and 7 of this 

Article. However, for the sole purpose of dampening handkerchiefs 

in order that work may be ready for the ironing crew the following 

Monday morning, not more than four (4) employees in any one (1) 

plant shall be permitted to work on Saturday. No such employees 

shall be permitted to work in any case in excess of forty ( 40) hours 

in any one (1) week, including the hours that have been worked by 

such employee on the Saturday of said week. In any week in which 

a legal or religious holiday occurs the Code Authority may permit 

work to be done on a Saturday of such week. 

Add a new Section 10 to Article III : 

Except as herein provided no work shall be done in any factory 

except between the hours of 8 A. M. and 12 noon and b-etween the 

hours of 1 P. M. and 5 P. M. In the event, however, that all or a 

majority of factories in any particular city or area request a change 

from the standard hours herein above set forth, the Code Authority, 

subject to the disapproval of the National Industrial Recovery 

Board, may modify the standard hours for such city or area. In 

no case shall the lunch period be less than one hour and in no case 

shall such standard hours exceed 8 hours per day. 

Amend Article IV, Section 1 by del-eting the present Section and 

substituing therefor the following: 

1. Except as hereinafter provided;. no employee in any section of 

the United States other than the ~outhern Section as defined in 

Section 5 of Article II, of this Code, shall be paid at less than the 

rate of thirteen ($13.00) dollars per week of forty (40) hours nor 

shall any employee engaged in the Southern Section of the United 

States be paid at less than the rate of twelve ($12.00) dollars per 

week of forty ( 40) hours. 

No member of the industry shall make any deduction from the 

wages of any employee because of spoilage or because of the infraction of any rule where the effect of such deduction would be to reduce the net weekly wage of any such employee to less than the 

minimum wages provided herein. 

Each member of the industry shall maintain accurate payroll 

records (including records of hours worked) and shall submit reports based thereon at four-weekly intervals to the Confidential 

Agency. 

Amend Article IV, Section 3 by deleting the present section and 

substituting therefor the following : 

3. Each member of the industry shall file with the Confidential 

Agency of the Code Authority duly certified schedules of rates of 

pay for :piecework production for each type of standard operation 

111 force In his plant (including homework, if any and where permissible), and shall advise said Agency of any change or alteratio:q. 

which may at any time be made in such schedules. Said Confidential 

Agency shall report to the Code Authority, under key numbers, all 

such schedules, in order that the Code Authority may be kept informed as to the observance or nonobservance of this Code. Unless 
7 

orcleret.l l>y tl~c ~ a.tionul Incln. trial ReroYery Bonnt ~~itl onfidential 

Agen ·.y shall iu no case t.lisclo.-·c. the lllllllL' of nn~ one to '"hom any 

key number may have r eference. 

~l.mend ~\..rtidc IV, Section 7 by deleting the pn .. '~CJlt Section and 

snbstituting therefor th following: 

7 ..... \.. pcr.-·on whose ( nrning capacity is limite<l bf'l'a nse of age, 

physical or mental hamlicap. or other infinnity, may bC' employed ~on 

light 'York at a wage beloy,- the minimum establi::::hett by this Code, 

if the employer obtains from thl~ State .. \..uthority (le!:dgnated by the 

United States Department of Lnbor n certificate authorizing such 

person's employment at such \rage~ and for such hour a shall ba 

stated in the. certificate. Such ~-\..uthority . ·hall be guided by the in-

:-:tructions of the Unitet.l States Department of Labor in ss~1ing 

certificate · to such per on. Each employer . hall file monthly, with 

the Code Authority a list of all such persons employed by him, 

showing the wages paid to, and the maximum hours of work for 

such employee. 

~\mend Article IV, Section 8 'by deleting the present Section and 

~nbstituting therefor the following: 

8. (a) Except as hereinafter provided, no member of the industry 

. ·hall manufacture or finish or cause to be manufactured or finished 

any handkerchief by means of home labor, except that handkerchiefs 

made entirely by hand may be manufactured at home. 1 

(b) Anythjng to the contrary herein notwithstanding, a person 

may be permitted to engage in homework at the same rate of wages 

as is paid for the same type of work performed in the factory or 

other regular place of business if a home-worker's certificate is 

obtained from the State Authority or other officer designated by the 

United States D€partment of Labor, such certificate to be granted in 

accordance with instructions issued by the United States Department 

of Labor, provided 

(1) Such person is physically incapacitated for work in a factory 

or other regular place of business and is free from any contagious 

llisease; or 

(2) Such person is unable to leave home because his or her services 

are ab olutely essential for attedance on a person who is bedridden 

or an invalid and both such persons are free from any contagious 

disease, or because of the necessity of caring for minor children or 

rlependents unable to leave home. 

Any employer engaging such a person shall keep such certificate 

on file and shall file with the Code Authority the name and address 

of each worker so certified. 

Delete Article IV, Section 9 in its entirety. (The present Article 

IV, Section 10 now becomes Article IV, Section 9.) 

Amend Article V, Section 1 by deleting the present Section and ~ubstituting therefor the following: 

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

the Industry. In the event of a claim of alleged violatiqn of this 

1 See paragraph 3 of order approving this Amendment, 

04752°----l32G- 2----34----2 
8 

section, an employer shall be dee1ned to have complied wit~ the provisions of this section if he shall have on file and make a va1lable for 

inspection by the Confidential Agency a certi~cate .of age issued by 

the duly authorized department of the State 1n "Wlnch the employer 

operates, howing the age of the employee at the time of entering 

such employment to be no less than the age required by this section. 

Amend Article VI, Section I by deleting the prec:ent Section and 

sub tituting therefor the follol'i·ing: 

To further effectuate the purposes of the Act, a Code Authority is 

hereby constituted to cooperate with the National Industrial Recovery Board in the Administration of the Code. Said Code Authority 

shall consist of not more than thirteen ( 13) membrrs to b'-' elected 

in the manner hereinafter set forth : 

(a) Nine (9) members an l two (2J alternates shall be appointed 

by the Board of Directors of the Handkerchief Indu. try Association, T . _nc. 

(b) One (1) member shall be appointed by the National Indu trial 

Recovery Board on the nomination of the Labor Advi ory Board 

of the N ationnl Recovery Administration. 

(c) In addition to the foregoing, the National Inrlustrial Recovery Board may appoint not more than three (3) members without 

vote to repre ent the National Indu trial RecoYery Board and/or 

such groups or interests as it may designate. 

Amend Article VI, Section 4 by deleting the pre~ent Se"tion and 

substituting therefor the :following: 

4. If the National Industrial Recovery Board shall at any time 

detennine that any action of the Code Authority or any agency 

thereof may be unfair or unjust or contrary to the public interest, 

the National Indu trial Recovery Board may require that such action 

be ·uspended to afford an opportunity for investio·ation of the merits 

of each action and further consideration by the Code Authority 

or agency pe~1cling final action which shalln ~t be effective unless the 

National Industrial Recovery Board approves or unless it shall fail 

to disapprove after thirty (30) days' notice to it of intention to proceed with such action in its original or modified form. 

Amend Article' VI, Section 5 by deleting the pre ·ent Section and 

substituting therefor the following: 

Subject to such rules and regulations as may be issued by the 

National Industrial Recovery Board, the Code Authority shall h::tve 

the :following powers and duties, in addition to those authorized 

by other provisions of the Code. 

(a) To incorporate itself, the Code Authority may incorporate 

m1der the laws of any State of the United States or of the District 

of Columbia, uch corporation to be not for profit and to be known 

as " The Handkerchief Industry Code Authority"; provided that 

the powers, duties, objects and purposes of the said corporation, shall, 

to the satisfaction of the National Industrial Recovery Board, be 

limited to the powers, duties, objects and purposes of the Code Authority as provided in the Code; provided further, that the Code 

A-uthority shall submit to the National Industrial R.ecovery Board, 

for its approval, its proposed Certificate of Incorporation and proposecl by-h~s: and no amendment of either hall be made without 
9 

the like prior approval of the National Indu trial Reco\ery Board. 

If a~ any time, the N at.ional Industrial Recovery Board shall de-

~ermine. that ~he ;orporate status .accrue~l by the Code Au~hority is 

1nterfenng w1th the proper exercls" of 1ts powers and duties under 

this 9ode, or with the offectuation of the policies or purposes of the 

Act, 1t may, after such notice and hearing as it may deem nece ·sary 

r~quir~ an appropria~e nwdification of the tructure of the Corpora! 

bon (If con. 1stent w1th the law of the State of Incorporation), the 

snb:.>titution of a corporation created under the laws of another State 

in tha same manner as the existing Code Authority, the substitution 

of a non-corporate Code Authority truly representati,-e of the Industry or such other actions as it n1ay deem expedient. 

(b) To elect officers and to assign to them sn2h duties u. · it may 

consider advisable, to set up rules for its OvYn proc~dure, and to 

provide for its continuance a the administrative agency of this 

Code in accordance with the term· of the Act. and the principles 

herein set forth. · 

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

and for tho administration and enforcement of this Code, and to submit the same to the National Industrial Recovery Board for its approval, together with true copies of any am.endments or additions 

when made thereto, and minutes of meetings when held and such 

other information as to its activities as the National Indu trial Re- covery Board may deem necessary to effectuate the purposes of the 

Act. 

(d) To insure the execution of the provision.· of this Code and to 

provide for the Compliance of the Inclu try 11ith the provision · of 

the Act. 

(e) To ·elect a Confidential Ageney. The Agency shall in no 

way be engaged in the industry or connected with any member 

thereof. The Code Authority shall furnish said Agency with such 

credentials as are neces ary to facilitato its operations. 

The Confidential Agency shall obtain from all members of the 

Industry reports of such character and in such form as is permitted 

under this Code and under the Act. All individual reports shall be 

held as secret and confidential between the Agency and the reporting 

members, except as hereinafter provided. 

Each member of the industry shall maintain accurate ancl complete 

records of its transactions wherever such records may be required 

under any of the provi ions of this Code, and shall furnish accurate 

reports based upon such records concerning any of such activities 

when required by the Code Authority or the National Industrial 

Recovery Boarcl. If the Code Authority or the National Industrial 

Recovery Board shall determine that substantial doubt exi ts a · to 

the accuracy of any ·uch report, so much of the pertinent books, 

records, and paper of uch member as may be required for the verification of such report may be examined by an impartial agency 

agreed upon between the Code Authority and such member, or, in the 

ab ence of agreement, appointed by the National Industrial Recovery 

Board. In no case shall the facts disclo ed by such examination be 

made available in identifiable form to any competitor, whether on 

the Code Authority or otherwise, or be given any other publication, 

except such as may be required for the proper aclmini tration and 

enforcement of the provi. ions of this Code. 
10 

In at.h1ition to information rer1nireL1 to b" snbmittell to the Code 

Authority, members of the inclnstrv shall furni-h ~nch .-tati~ti 'ul 

informat1on ns the .Xational In<ln -ti·ial Recovery Boanl ma. (leem 

necessnry for the purpose.· recih'<l in Section 3-A of the Act to :such 

Federal and State Agencies a: it may t.le. ·ignatc; provided that nothing in this Coc1c . ·hall relieve nny member of the iwlustry of any 

obligations to furnish reports to any government agency. 

(f) To secure from the Confidential Agene. · c·c)n-..;olidatecl 1·eporb 

in respect to all matters pertinent to this ,oll '· 

(g) To , ubmit reports either Llirectly to the National I1Hlu:--t.rial 

Recovery Board, (or through th Confidential Agency to it, if the 

reports be of a secret or confidential natnrt:) . in such form and at 

such time as it may require, in order that the Pre.::.ident may bo kept. 

informed with resp ct to the ob:ervnncP or non-obsernmce of th 

Code and of the Act. 

(h) To direct the Confidential Agency to make . ·uryeys and inve. -

tigations, compile reports, collec.:t stntisties in su ·h manner and under 

such regulations a:::; the Code Authority may pre:-.<'ribt-. subject to 

eli approval of the National Industrial Recovery Boanl. 

(i) To create, ubj ect to the approval of the ~ntional Inclu:-:,trial 

Recovery Board, a Trade Practice Complaints Committoe which 

shall inve tigate all alleged violations of this Code other than allege<l 

labor violations, and a t npon the result · thereof, an<l, if the tln<ling~ 

justify, to transmit said tindings to the National Indu:-;tri nl R('<'nYery 

Board and to any other proper Governmental agency. (j) To u ·e such trade as...:ociation · and other agencies a.-· it deem .... 

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

herein, provided that nothing herein shall relieve the Code Authority of it· t.luties or re. ·ponsibilities under this Code and that . ·uch 

trade associations and agencies shall at all times be . ·nbject to aJHl 

comply 'Yith the provisions hereof. 

(k) To make recommendations to the National Industrial Recovery Board for the coordination of the administration of thi.~ Code 

with c:uch other codes, if any, as may be related to or affect <'mbe ~ 

of the industry, Qr any subdivision thereof. 

(I) It being fennel necessary, in order to support the <lllminif:..-

tration of this Code and to maintain the standards of fair competition established by this Code and to effectuate the policy of the Act. 

the Code Authority is authorized: (1) To incur such reasonablr 

obligation. a are necessary and proper for the foregoing purpose.-· 

and to meet such obligations out of funds which may be raised as 

hereinafter provided and which shall be held in trust for the purposes of the Code; (2) To submit to the National Industrial Recovery Board for its approval, subject to such notice and opportunity 

to be heard as it may deem nece sary, (a) an itemized budget of it. 

estimated expenses for the foregoing purpose , and (b) an equitable 

ba is upon which the funds necessary to support such budget shall 

be contributed by members of the Industry; and (3) After such 

budget ~nd basis of contribution have been approved by the National 

Industnal Recovery Beard, to determine and obtain equitable contribution as above set forth by all such members of the industry, and ~o that end, if necessary, to institute legal proceedings therefor in 

1ts own name. 
11 

Each member of the industry shall pay his or its equitable contribution to the expenses of the maintenance of the Code Authority, 

determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by theN ational Industrial Recovery 

Board. Only members of the industry complying with the Code and 

contributing to the expenses of its administration as hereinabove 

provided (unless duly exempted from making such contributions), 

shall be entitled to participate in the selection of members of the 

Code Authority or to receive the benefits of any of its voluntary 

activities, or to make use of any emblem or insignia of the National 

Recovery Administration. 

The Code Authority shall neither incur nor pay any obligations 

substantially in excess of the amount thereof as estimated in its 

approved budget and shall in no event exceed the total amount contained in the approved budget, except upon approval of the National 

Industrial Recovery Board; and no subsequent budget shall contain 

any deficiency item for expenditures in excess of prior budget estimates, except those which the National Industrial Recovery Board 

shall have so approved. 

(m) To cause to be formulated methods of cost finding and accounting capable of use by all members of the industry, and to submit such methods to the National Industrial Recovery Board for 

review. If approved by the National Industrial Recovery Board, 

full information concerning such methods shall be made available 

to all members of the industry. Thereafter, each member of the 

industry shall utilize such methods to the extent fotmd practicable. 

Nothing herein contained shall be construed to permit the Code Authority, any agent thereof, or any member of the industry to suggest 

uniform additions, percentages or differentials or other uniform 

items of cost which are designed to bring about arbitrary uniformity 

of costs or prices. 

(n) To make coml?laint to the President on behalf of the Industry, in accordance w1th the provisions of Section 3 (e) of the Act, 

whenever any article is being imported into the United States in 

substantial quantities or increasing ratio to domestic production o£ 

any competitive article or articles and on such terms or under such 

conditions as to render ineffective or seriously to endanger the maintenance of this Code, and for the purpose of making such complaint, 

to secure from all members of the industry, through the Confidential 

Agency, all information necessary to support such complaint. 

( o) To establish or designate, subject to the approval of the N ational Industrial Recovery Board, such agencies on planning and 

fair practice as may be necessary, which agencies sil1.all cooperate 

with the Code Authority in developing fair trade practices and industrial planning, including the regularization and stabilization 

of employment for the industry. 

(p) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

codes as may be related to the industry for the purpose of formulating fair trade practices to govern the relationships between. employers under this Code and employers under such other Codes to 

the end that such fair trade practices may be proposed to the 

National Industrial Recovery Board as amendments to this Code 
12 

and to such other codes, and to issue such further rules and regulations as may be necessary to establish such further fair trade practices, as may be approved by the National Industrial Recovery 

Board. 

( q) To initiate, consider, and make recommendations for the 

modification or amendment of this Code, which modifications or 

amendments shall become effective as part hereof upon approval by 

the National Industrial Recovery Board after such notice as it may 

specify. 

( r) To provide appropriate facilities for arbitration, and, subject to the approval of the National Industrial Recovery Board, to 

prescribe rules of procedure and rules to effect compliance with 

awards and determinations. 

( s) In order to assist in making effective the reports from the 

industry and in eliminating unfair competition, the Code Authority 

ma:y appoint a committee so constituted as to give consumer and 

governmental representation satisfactory to the National Industrial 

Recovery Board to make a study with a view to the establishment 

of classifications and standards of quality and size of staple products 

of the industry wherever such standards are deemed feasible. The 

findings and recommendations of this committee shall be submitted 

to the National Industrial Recovery Board, and after such hearings 

and investigations as it may designate and upon approval by it 

shall be made a part of this Code and shall be binding upon every 

member of the industry. 

Amend Article VI, Section 6 by deleting the present Section and 

substituting therefor the following: 

6. 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 

act of any other member, officer, agent, or employee of the Cod·e 

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

to anyone for any act or omission to act under this Code, except 

for his own willful malfeasance or non-feasance. 

Amend Article VI by adding a new Section 7 as follows : 

7. There shall be established an Industrial Relations Committee 

for the Industry, which shall consist of an equal number of representatives of employers and employees and an impartial chairman. 

TheN ational Industrial Recovery Board shall appoint such impartial 

chairman upon the failure of the committee to select one by agreement. If no truly representative labor organization exists, the employee members of such board may be nominated by the Labor Advisory Board of the N. R. A. and appointed by the National Industrial R2covery Board. The employer representatives shall be chosen 

by the Code Authority. Such committee shall deal with complaints 

relating to labor in accordance with rules and regulations issued by 

the National Industrial Recovery Board. The Industrial Relations 

Committee may establish such divisional, regional, and local industrial adjustment agencies as it may deem desirable, each of which 

shall be constituted in like manner as the Industrial Relations Committee. 
13 

Delete Article VII In Its Entirety. (The Present Article VIII 

Now Becomes Article VII and the Present Article. IX Becomes Article VIII.) 

Amend Article VII, Section 1 By Deleting the Present Section and 

Substituting Therefor the Following: 

1. No member of the Industry shall directly or indirectly give, 

permit to be given, or offer to give, anything of value for the purpose 

of influencing or rewarding the action of any employee, agent or 

representative of another in relation to the business of the employer 

of such employee, the principal of such agent, or the represented 

party, without the knowledge of such employer, principal, or party. 

This provision shall not be construed to prohibit free and general 

distribution of articles commonly used for advertising except so far 

as such articles are actually used for commercial bribery as hereinabove defined. 

Amend Article VII, Section 2 By Deleting the Present Section 

and Substituting Therefor the Following: 

2. No member of the industry shall make or allow to be made. any 

payments or allowance of rebates, refunds, commissions, credits, or 

unearned discounts, whether in the form of money or otherwise, or 

extend to certain purchasers any special services or privileges not 

extended to all purchasers on like terms and conditions. No member 

of the Industry shall allow buying commissions, rebates, extra dis- count~, or other concessions to purchasing agents or to purchasing 

agencies. 

Amend Article VII, Section 4 By Deleting The Present Section 

and Substituting Therefor The Following: 

4. No stock protection shall be given involving price adjustment on 

merchandise delivered and no pnce guaranty shall be given against 

decline on orders booked for future delivery. 

Amend Article VII, Section 5 By Deleting The Present Section 

and Substituting Therefor The Following: 

5. No member of the Industry shall accept the return of merchandise sold to a customer in good faith and shipped in accordance with 

specifications, order, or contract. In no event shall any merchandise 

be accepted for return, if retained by a customer for more than ten 

(10) days after receipt of the merchandise, unless the said merchan· 

dise is returned because of hidden defects effecting the salability of 

the merchandise. 

An1end Article VII By Adding A New Section 21, As Follows: 

21. No member of the Industry shall deviate from the price fixed 

by a contract. All Contracts andjor orders shall be binding in 

accordance with the provisions thereof. 

Amend Article VII By Adding A New Section 22, As Follows 1 

22. No member of the Industry shall accept the attempted cancellation of a contract, where the effect of such cancellation would be 

to circumvent any provision of this Code. 
14 

Amend Article VII By Adding A New Section 23, As Follows: 

23. No member of the Industry shall ship merchandise on consignment or memorandum. 

Amend Article VII By Adding A New Section 24, As Follows: 

24. No member of the Industry shall procure or attempt to procure, any information concerning the business of another member 

which is properly regarded by such member as a trade secret or 

confidential within its organization (except on consent of such 

member). 

Amend Article VII By Adding A New Section 25, As follows: 

25. No member of the Industry shall pack handkerchiefs not of 

first quality in sealed cartons or envelopes or in any other sealed 

containers so that the whole or part of the handkerchief is not easily 

accessible for examination unless said individual containers are 

clearly marked " seconds " or otherwise appropriately designated as 

containing merchandise other than "firsts". 

Amend Article VII, By Adding A New Section 26, As Follows: 

26. (a) Wben the basic fabric from which a handkerchief is manufactured, embodies in either the warp or the filling, or both, more 

than one kind of yarn, no matter from what fibre or filaments the 

yarn may be spun, the handkerchief manufactured from such fabric 

shall not be labelled or by any form of phraseology be designated or 

referred to by the name of any one only of the component fibres or 

filaments, unless such component constitutes by thread count 80% of 

the fabric, and provided further, that unless the fabric is genuinely 

100% of any fibre or filament designation (linen, cotton, silk, rayon, 

etc.) exclusive of regular selvage, except as hereinafter provided for 

fancy woven materials, the actual percentage by thread count of any 

component of at least 60% and which is less than 100%, shall be 

prominently indicated on any label or ticket identifying the handkerchiefs manufactured from such fabric. 

In the case of fancy woven materials, in which the warp and the 

filling of the plain weave are made from yarns of the same fibre, 

whether the fancy elements are plain corded or fancy borders, or allover effects, such as checks or plaids, and are made of yarns of other 

fibres or filaments, only the true fabric name of the plain weave may 

be designated, if only one fibre element is specified on the label. 

The above prohibitions shall not apply to merchandise delivered 

on or before December 31st, 1934, provided that Sections 18 and 19 

of this Article are not violated. 

(b) The elements used for appliques, embroidered embellishments, 

lace corners, lace edges, or any material attached in any way to complete the handkerchiefs, shall not be considered as affecting the true 

designation of the basic materials as herein specified. 

(c) No member of the Industry shall use labels, the wording of 

which emphasizes in any manner a minor element in the manufacture, 

construction or finish of the handkerchief fabric, or in the processing 

or embellishment of the handkerchief itself, which descriptive word- in~ may have a tendency to induce a purchaser to believe that the 

sa1d wording applies to the handkerchief as a whole or to the basic 

fabric referred to in paragraph marked "a" of this Section. 
15 

( d} No member of the Industry shall so label handkerchiefs, 

specially or otherwise, at the request of any purchaser or purchasing 

agency as to in any way conflict with the provisions of this Section. 

Amend Article VII By Adding A New Section 27, As Follows: 

27. No member of the Industry shall, in sampling fancy white 

satin strips or prints, or white cords, or colored cords, or colored 

woven borders, insert samples in sample folders so as to conceal from 

the prospective customers the fact that one side of the handkerchief 

is raw selvage, unstitched, unless a conspicuous label or marking of 

some kind is placed on the handkerchief indicating that only three 

sides of the handkerchief are hemmed. 

Amend Article VII By Adding A New Section 28, as Follows : 

28. The Code Authority shall create, subject to the approval of the 

National Industrial Recovery Board, appropriate regulations and 

facilities for the registration of new or original styles, designs or 

patterns of handkerchiefs. Upon the creation of such regulations 

and facilities and upon the approval thereof by the National Industrial Recovery Board, no member of the Industry other than the 

registering member shall manufacture or cause to be manufactured 

any handkerchiefs incorporating any such new or original styles, designs, or patterns as may be registered as hereinabove provided, 

except upon the written consent of the registering member. 

Amend Article VIII, Section 1 By Deleting The Present Sections 

and Substituting Therefor The Following: 

Maximum terms of sale for this Industry shall bel. Net cash ten (10) days; or with an equalizing; differential in the 

price, two per cent (2%) ten (10) days-sixty (60) extra; or two and 

one-half per cent (21j2%) ten (10) days-thirty (30) extra; or 

three per cent (3%) ten (10) days; or C. 0. D. three per cent (3%). 

The cash discounts as outlined in this Section shall be interpreted 

as maximum discounts allowed under this Article. Members of the 

Industry shall be permitted to sell at terms other than those specifically stated in this Article, provided, however, that such terms shall 

not be more advantageous or more liberal than those terms specified 

in this Article, and further, that such dating shall not in any case 

exceed seventy (70) days from date of billing of merchandise to the 

buyer, and further, that in no case shall the cash discount be in 

excess of three per cent (3%). 

Amend Article VIII, Section 5 By Deleting The Present Section 

and Substituting Therefor The Following: 

5. No member of the Industry shall allow discount if bill is not 

paid within fifteen (15) days of due date at the office at which the 

account is due and payable. 

Amend Article VIII, Section 9 By Adding To The Present Section 

The Following: 

9. The term " packa~ d, trade-marked handkerchiefs " as used 

herein, shall mean and Include one (1), two (2), or three (3) handkerchiefs completely encased in a carton or sealed envelope wrap2 which carton or wrap bears thereon the trade-mark of the member ot 

the Industry and a suggested retail price. 

• 
16 

Amend Article VIII By Adding A New Section 10, As Follows: 

10. No member of the Industry shall give any discounts except 

as provided in this Article whether in the nature of trade discounts or 

increased cash discounts and whether arrived at by increasing the 

gross selling price or in any other manner. 

Amend Article VIII By Adding A New Section 11, As Follows: 

11. The ~eller shall designate the terms of payment under which 

his merchandise shall be sold in accordance with Section 1 of this 

Article. 

Amend Article VIII By Adding A New Section 12, As Follows: 

12. A member of the Industry may bill merchandise shipped on or 

after the 25th of the month as of the first of the following month. 

Amend Article IX, By Substituting the Present Article IX for 

the Former Article VIII and Substituting as the Pre~ent Article IX, 

The Following Sections: 

A;RTICLE IX-NRA LABELS 

1. I-Iereafter, the Code Authority may apply to the National Industrial Recovery Board for grant of the necessary authority and 

exclusive right to issue and sell NRA labels, or authorized substitutes 

therefor, to members of th~ Indu;;try; and, upon the issuance of appropriate orders by the National Industrial Recovery Board, under 

powers vested in it by Executive Orders of the President, including 

Executive Order No. 6859 and otherwise, the Code Authority shall 

have the exclusive right in this Industry to issue and sell said labels 

or said authorized substitute~ to the members of said Industry; and 

thereafter all merchandise manufactured subject to the provisiOns of 

this Code shall bear on the carton containing such merchandise, or 

in such other place as the Code Authority, subject to review by the 

National Industrial Recovery Board, may designate, an NRA label1 

or an authorized substitute therefor, to symbolize to purchasers ot 

said merchandise the conditions under which it has been manufactured. 

2. The issuance and sale of said labels, and/or of said authorized 

substitutes, shall be governed by the following rules and regulations, 

and such other rules and regulations as may hereafter be issued 

or approved by the National Industrial Recovery Board: 

(a) Each label shall bear a registration number or numbers especially assigned to each member of the industry by the Code Authority, or a serial number, and shall remain attached to all such 

merchandise when sold to the retail distributor. 

(b) Any and all members of the Industry may apply to the Code 

Authority for a permit to use such NRA label, which permit shall 

be granted to them only if and so long as they comply with this 

Code. 

(c) For the purpose of ascertaining the right of members of the 

Industry to the continued use of labels and of protecting purchasers 

of merchandise bearing such labels and of insuring to each individual 

member of the Industry that the symbolism of such label will be 

maintained by virtue of compliance with the provisions of this Code 

by all members of the Industry using said label, the Code Authority 

• 
17 

shall establish rules and regulations and appropriate machinery for 

the issuance of labels and the inspection, examination and supervision of the practices of members of the Industry. 

(d) The charge made for such labels by the Code Authority shall 

be subject to the approval of theN ational Industrial Recovery Board. 

(e) The application of the provisions of this Article and the rules 

and regulations governing the issuance and use of said labels shall 

at all times be subject to rules and regulations issued by the National 

Industrial Recovery Board. 

Amend Article X, Section 10, Deleting the Present Section 10 

and Substituting Therefor the Following: 

All members of the Industry shall post and keep posted in a conspicuous place accessible to employees complete copies of this Code. 

In addition to the foregoing complete copies of all labor provisions 

of this Code together with any necessary interpretations shall be 

placed in a conspicuous place on each factory floor and in all places 

of business other than the factory where three or more persons are 

employed. Such posted copies of the labor provisions of this Code 

and of the said interpretations shall be in English andj or in any 

other necessary language or languages. 

Amend Article X By Adding A New Section 12, As Follows: 

Every employer shall provide for the safety and health of employees during the hours and at the places of their employment. 

Standards of safety and health shall be submitted by the Code· Authority to the National Industrial Recovery Board within three (3) 

months after the effective date of this amendment. 

Approved Code No. 53-Amendment No. 2. 

Registry No. 237-1-01. 

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