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Approved Code No. 164-Arnendrnent No. 2 Registry No. 243-1-0Z 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR 

INDUSTRY 

AS APPROVED ON SEPTEMBER 25, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

W ABBINGTON: 1934. 

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Approved Code No. 164-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR INDUSTRY 

As Approved on September 25, 1934 

ORDER APPROVING AMENDMENTS TO CODE OF FAIR COMPETITION FOR 

THE KNITTED OUTERWEAR INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions o:f Title I of the National Industrial 

Recovery Act, approved June 16, 1933, :for approval o:f amendments, 

to a Code o:f Fair Competition for the Knitted Outerwear Industry, 

and hearings having been duly held thereon and the annexed report on 

said amendments, containing findings with respect thereto, having 

been made and directed to the President: 

NOW, THEREFORE, on behalf of the President 0£ 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 DecembBr 

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

annexed report and do find that said amendments and the Code as 

constituted after being amended comply in all respects with the 

pertinent provisions and will promote the policy and purposes 0£ 

said Title of said Act, and do hereby order that said amendments be 

and they are hereby approved, and that the previous approval of 

said Code is hereby modified to include an approval of said Code 

in its entirety as amended, subject to the following condition: 

The amendment to Article II, Section (a), in so far as it includes 

in the definition of the Industry " the manufacture of bathing suits 

made of purchased knitted fabric and/ or other textile materials", 

shall become effective thirty (30) days from the date hereof provided 

that the Deputy Administrator finds that adequate legal consent has 

been given by the bathing suit manufacturers, so described, to inclusion under this Code, upon the basis of a report from the Division 

of Research and Planning and/or other reports that he may obtain. 

HUGH 8. JOHNSON, 

Administrator for lndrustrial Recovery. 

Approval recommended: 

PRENTISS L. COONLEY' 

Acting Dvvision Administrator. 

WASHINGTON, D.C., 

September ~5, 1934. 

93006 °-1244-83-----34 ( 1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn : This is a report on the Hearing covering the Amendments 

to the Code of Fair Competition for Knitted Outerwear Industry 

held in the Oak Room of the Raleigh Hotel, Washington, D.C., 

Thursday, June 7, 1934. The Amendments which are attached were 

presented by a duly qualified and authorized representative of the 

Code Authority of the Knitted Outerwear Industry, complying with 

statutory requirements and being the agency that is administering 

the Code. 

In accordance with customary procedure every person who had 

filed a request for appearance was freely heard in public and all 

statutory and regulatory requirements were complied with. 

PROVISIONS OF THE AMENDMENTS 

There are eight amendments as follows : 

1. An amendment changing the definition of the Industry to 

include manufacturers of bathing suits from purchased knitted fabric 

and/or other materials. These manufacturers were not previously 

covered by any other code. 

2. An amendment to the " Hours " . provisions of the Code fixing 

the hours of employment of certain classes of workers previously 

excepted such as, repair shop crews, engineers, electricians, etc. 

This amendment also changes the overtime operation of plants 

operating on a single shift basis and limits the hours which partners 

in any co-partnership firm may work on productive operations. 

3. An amendment providing for mandatory contributions by 

members of the Industry toward the expenses of administering the 

Code. 

4. An amendment to the" Terms of Sale", under Trade Practices, 

providing for a cash discount on sales of knitted outerwear fabric. 

5. An amendment to the " Returns" clause of Trade Practices 

providing for the return of knitted outerwear fabrics. 

6. An amendment to the "Delivery Charges" clause of Trade 

Practices providing for delivery charges on knitted outerwear 

fabrics. 

7. An amendment to Trade Practices providing for the payment 

by customers of all special "Accessories". 

8. An amendment to Trade Practices covering "Advertising 

Allowances". 

FINDINGS 

The Deputy Administrator in his final report to me on said amendments to said Code having found as herein set forth and on the basis 

of all the proceedings in this matter; 

(2) 
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I find that: 

(a) The amendments to said Code and the 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 cooperative 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 the 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 without limitation Subsection (a) of Section 3, Subsection {a) of Section 7, and 

Subsection {b) of Section 10 thereof. . ( c) The Code empowers the Code Authority to present the aforesaid amendments on behalf of the Industry as a whole. 

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

to and will not permit monopolies or monopolistic practices. 

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

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

operate to discriminate against them. 

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

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

amendments. 

For these reasons these amendments have been approved. 

Respectfully, 

SEPTEMBER 25, 1934. 

HUGH s. JOHNSON, 

AdmiJnistrator. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE KNITTED OUTERWEAR INDUSTRY 

Amend Article II, Section (a) so that the amended section will 

read as follows : 

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

defined to mean and include the manufacture of bathing suits, 

knitted or made of purchased knitted :fabric and/or other materials, and/or the manufacture of knitted outerwear apparel :for 

men, women and/or children, including infants and/or the manufacture o:f knitted :fabrics for outerwear purposes, but shall not 

include the products o:f the hosiery and/or underwear industries 

and/or the manufacture o:f knitted woolen goods in self contained 

woolen mills of the wool textile industry as defined in the respective 

Codes of such industries and shall not include the manufacture of 

ladies' and misses' coats, suits, dresses, ensembles, blouses, skirts, 

and/or other garments ( except as hereinbefore provided with respect to bathing suits), made of purchased knitted fabrics or of 

fabrics not made by machinery owned by the garment manufacturer. 

Amend Article III, Section (a) so that the amended section will 

read as follows: 

(a) Excepting as hereinafter provided, no employee in the 

Knitted Outerwear Industry shall be permitted to work in excess 

of forty (40) hours per week or eight (8) hours in any twentyfour (24) hour period, 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. 

Amend Article III, by striking out Sections ( c), ( d), ( e) and 

(f) and substituting therefor the following Sections: 

( c) Except as pr-0vided in Section ( f) o:f this Article no engineer, electrician, cleaner or member of a repair shop crew or shipping 

crew shall be permitted to work in excess of forty-four ( 44) hours 

in any one week, or nine ( 9) hours in any twenty-four ( 24) hour 

period. 

(d) No fireman or watchman shall be permitted to work in excess 

of fifty-six ( 56) hours per week, as averaged over a consecutive 

two (2) week period provided that at least one day off shall be 

allowed in every :fourteen (14) day period. 

(e) No employee engaged in a supervisory capacity and earning 

less than thirty-five dollars ($35) per week shall be permitted to 

work in excess o:f ten per cent (10%) additional to the hours o:f work 

herein provided for the employees o:f the department in which he 

(she) is engaged. Employees engaged in a supervisory capacity 

earmng thirly-five dollars ($35) per week or more are not limited 

as to the hours of work. 

(:f) Employers in the Knitted Outerwear Indw,try 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 

(4) 
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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 notifyin~ the Code 

Authority to operate all machinery for one shift of torty (40) 

hours per week and in such event the Code Authority may give 

permission to such manufacturer to engage his employees and to 

operate his machinery for thirty-two (32) hours overtime during 

each ,six ( 6) months' period. This overtime may be used to meet 

the needs of the manufacturer during the six ( 6) months' period 

following his election to operate one shift of forty ( 40) hours per 

week, and no additional overtime may be granted during said six 

( 6) months' period, excepting with the approval of the Administrator. During the period of operating under said overtime allowance, operations shall not exceed forty-eight ( 48) hours in any one 

week or ten (10) hours in any twenty-four (24) hour period, and 

provided further, that all such hours additional to the daily or 

weekly maximums provided in this Article shall be paid .for at not 

le,ss than the rate of one and one-third the normal rate o.f pay. The 

hours in each week during which any machinery may be operated in 

the production of products of other employers and/or industries 

shall be included in calculating the hours of operation of such 

machinery as limited by this provision. 

(g) Members of the Industry and partners in any co-partnership 

firm that is a member of the Industry and officers of any corporation 

which is a member of the Industry, who are personally engaged in 

the manual or mechanical process of manufacture, shall be subject 

to the hour provisions of this Code. 

Amend Article IX, Section ( f) to read as follows: 

( f) 1. It being found necessary in order to support the administration of this Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, 

the Code Authority is authorized: 

(A) to incur reasonable obligations as are necessary and proper 

for the foregoing purposes, and to meet such obligations out of funds 

which may be raised as hereinafter provided and which shall be held 

in trust for the purposes of the Code; 

(B) to submit to the Administrator for his approval, subject to 

such notice and opportunity to be heard as he may deem necessary 

( 1) an itemized budget of its estimated expenses for the foregoing 

purposes, and (2) an equitable basis upon which the funds necessary 

to support such budget shall be contributed by members of the 

Industry: 

(C) After such budget and basis of contribution have been 

approved by the Administrator, to determine and obtain equitable 

contribution as above set forth by all members of the Industry, and 

to that end, if necessary, to institute legal proceedings therefor in 

its own name. 

2. 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 the Administrator. Only members of the Industry complying with the Code and contributing to 

the expenses of its administration as hereinabove provided, unless 
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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. 

3. The Code Authority shall neither incur nor pay any obligation 

substantially in excess of the amount thereof, as estimated in its 

a pp roved budget, and shall in no event exceed the total amount contained in the approved budget, except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item 

for expenditures in excess of prior budget estimates except those 

which the Administrator shall have so approved. 

Amend Article X, Section ( e) by the addition of two new sentences, and other slight changes so that the amended section will 

read as follows : 

(e) Terms of Sale.-(1) No member of the Industry shall sell or 

offer to sell knitted outerwear products upon terms more favorable 

to the buyer than a discount of three per cent (3%) to the wholesale 

trade for payment on the tenth (10th) day of the calendar month 

:following the designated shipping date or equivalent discount for 

longer periods. (2) No member of the Industry shall sell or offer 

to sell knitted outerwear products to the retail trade upon terms 

more favorable to the buyer than a discount of eight per cent ( 8% ) 

for payment on the tenth (10th) day of the calendar month following the designated shipping date or equivalent discount for longer 

periods. For the purpose of these provisions, the twenty-fifth 

(25th) calendar day shall be considered the end of the month. (3) 

No member of the Industry shall sell or off er to sell knitted outerwear fabrics upon terms more favorable to the buyer than a discount 

of one per cent (1%) for payment on the tenth (10th) day of the 

calendar month following the designated shipping date, or net terms 

:for payment sixty (60) days after shipment, or equivalent terms 

for longer periods. (4) Anticipation and interest after due date 

shall be at the rate of six percent (6%) per annum. 

Amend Article X, Section (f) by the addition of a new sentence, 

so that the amended section will read as follows : 

(f) Returns.-No 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 under circumstances to be 

defined by the Code Authority. No member of the Industry shall 

accept the return of knitted outerwear fabrics except for defects in 

material and/or manufacture and in such cases only when return is 

made within ten days after receipt of goods and before the same are 

cut, except under circumstances to be defined by the Code Authority. 

Amend Article X , Section (h) by the addition of a new sentence, 

so that the amended section will read as follows : 

(h) Delivery Oharges--All knitted outerwear products shall be 

sold F.O.B. shipping point, except for deliveries within metropolitan areas local to the shipper, subject to exceptions approved by 

the Code Authority. All knitted outerwear fabrics shall be sold 

F.O.B. shipping point or F.O.B. New York City. 
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Amend Article X by the addition of two new sections to read as 

follows: 

(i) Accessories.-Unless the customer supplies the same or pays 

the cost thereof, no member of the Industry shall give or supply to 

any customer any special accessories including, but without limitation, labels, hangers, boxes or box tops, circulars and/ or fancy string 

tags with or without the customer's name and/ or trade mark thereon. 

Nothing in this section shall prohibit the furnishing of standard 

accessories by a manufacturer, at his own expense, to all customers 

alike. 

(j) Advertising Allowances.-( 1) No member of the Industry 

shall contribute to the advertising of a customer, whether by rebate, 

refund, allowance or other payment, made directly or indirectly, 

in money or merchandise, toward the advertising of a customer, 

except where such advertising features the na1ne, the trade mark or 

trade name of such member, and the merchandise bears such member's own label and except in compliance with the following conditions: 

(A) Contributions to advertising of a customer shall be by separate agreement, which shall set forth the definite amount contributed by the member of this Industry, and the nature and amount 

of advertising, and the period to be covered shall be specifically set 

forth, so that the use of said contribution may be identified. No 

advertising contribution agreement shall be used as a rebate, refund 

or merchandise allowance, but shall be for advertising only and contributions not used for advertisements, as set forth in the agreement, 

shall be returned to the member of the Industry. 

(B) Advertising contributions shall be offered to all customers 

on an equal basis. 

(C) Full records of all advertising contribution agreements shall 

be maintained by the members of this Industry so as to permit 

auditing at any time of said contributions and their use, in accordance with this section, and accurate reports, based on such records, 

shall be furnished when required by the Code Authority. 

Approved Code No. 164-A.mendment No. 2. 

Registry No. 243-1-0·2. 

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