Approved Code No. 53-Reprint Mar. 27, 1935 Registry No. 237-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TH-E 

HANDKERCHIEF INDUSTRY 

AS APPROVED ON OCTOBER 9, 1933 

BY 

PRESIDENT ROOSEVELT 

INCLUDES AMENDMENTS NOS. 1 AND 2 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1935 

For sale by the Superintendent of Documents, Washington, D .C. - - - - - - Prfee 5 een ts 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D. C., and by the following N. R. A. offices: 

Atlanta, Ga.: 625 Citizens & Southern National Bank Building. 

Baltimore, Md. : 130 Customhouse. 

Birmingham, Ala.: 201 Liberty National Life Building. 

Boston, Mass. : Room 1200, 80 Federal Street. 

Buffalo, N. Y.: 219 White Building. 

Chicago, lll.: Room 204, 400 North Michigan Avenue. 

Cleveland, Ohio : 520 Bulkley Building. 

Dallas, Tex. : 1212 Republic Bank Building. 

Detroit, Mich.: 415 New Federal Building. Houston, Tex. : 403 Milam Building. 

Jacksonville, Fla.: 425 United States Courthouse and Post Office 

Building. Los Angeles, Calif. : 751 Figueroa Street, South. 

Louisville, Ky.: 408 F ederal Building. 

Minneapolis, Minn. : 900 Roanoke Building. 

Nashville, Tenn.: 415 Cotton States Building. 

Newark, N. J. : 434 Industrial Office Building, 1060 Broad Street. 

New Orleans. La.: 214 Customhouse. 

New York, N. Y.: 45 Broadway. 

Oklahoma City, Okla.: 427 Commerce Exchange Building. 

Philadelphia, Pa. : 933 Commercial Trust Building. 

Pittsburgh, Pa.: 401 Law and Finance Building. 

Portland, Oreg. : 407 Park Building. 

Providence, R. I.: National Exchange Bank Building, 17 Exchange 

Street. 

St. Louis, Mo.: Suite 1220, 506 Olive Street. 

San Francisco, Calif. : Humbolt Bank Building, 785 Market Street. 

Seattle, Wash.: 1730 Exchange Building. 

(II) 
.. 

Approved Code No. 53 

APPROVED CODE OF FAIR COMPETITION 

FOR THE 

HANDKERCHIEF INDUSTRY 

As Approved on October 9, 1933 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

CoDE OF FAIR CoMPETITION 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 my approval of a Code o:f 

Fair Competition for the Handkerchief Industry, and hearings having been held thereon and the Administrator having rendered his 

report containing an analysis of the said Code of Fair Competition 

together with his recommendations and findings with respect thereto, 

and the Administrator having found that the said Code of Fair 

Competition complies in all respects with the pertinent provisions 

of Title I of the said Act and that the requirements of clauses (1) 

and ( 2) of subsection (a) of Section 3 of the said Act have been met: 

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

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

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

and otherwise, do adopt and approve the report, recommendations 

and findings of the Ad1ninistrator and do order that the said Code 

of Fair Competition be and it is hereby approved. 

The WHITE HousE, 

October 9, 1933. 

Approval recommended: 

HuGHS. JoHNsoN. 

124920°----1603-118----35 

FRANKLIN D. ROOSEVELT. 

(Ill) 
REPORT TO THE PRESIDENT 

OcTOBER 4, 1933. 

The PRESIDENT, 

The White House. 

MY DEAR MR. PRESIDENT: I have the honor to submit and recommend for your approval, the Code of Fair Competition for the 

Handkerchief Industry. The Code has been approved by the Labor 

Advisory Board, the Consumers Advisory Board, and the Industrial 

Advisory Board. 

An analysis of the provisions of the Code has been made by the 

Administration; and a complete report is being transmitted to you. 

I find that the Code complies with the requirements of clauses 1 

and 2, subsection (a) of Section 3 of the National Industrial 

Recovery Act. 

I am, my dear Mr. President, 

Very sincerely yours, 

Enclosure. 

(IV) 

HuoH S. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION FOR THE HANDKERCHIEF 

INDUSTRY 

ARTICLE I 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following provisions are submitted as a Code 

of Fair Competition for the H andkerchief Industry, and shall be 

the standard of fair competition f or this industry and shall be binding upon every member of the industry. 

ARTICLE II-DEFINITIONS 

1. The term "I ndustry" as used herein 'means and includes the 

manufactuTe and/ or production of handkerchiefs, in whole or in 

part, by hand or machine, including embellishing andjor finishing 

by hand or by nwchine, and the sale thereof within the cor1jines oj 

th.e Continental United States by any manufacturer, p1·oducer or 

importer or by any firm, corporation or an y other for?n of enterprise 

totally or partly owned or directly or indi?·ectly cont1·olled by any 

rnanufactU?·er, producer or in1porter of handkerchiefs. 

The term shall not include, howe'ver, the embellishing of handkerchiefs by Schiffli embr·oidery 1nachines, so-called " handlo01n" ?nacltines and so-called " hand-embroidery" rnachines, no·r shall it indude the manufacture in whole or in part of handkerchiefs in Puerto 

Rico. The tern1 ndustry" as used herein shall, howe n, rnean 

and include the sale within the Continental United States of handkerchiefs manufactured in whole or in part in Pue1•to Rico or else- 'U here outside the confines of the Continental United States.

2 

92. The term "mernber of the industry" as used her·ein shaU 

include: 

(a) Handkerchief manufacturers who own or operate their plants 

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

through salesmen, agents, or representatives, to the wholesale o1· 

r·ctail 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 sanw fabricat ed into 

handkerchiefs, plain or embellished, by contractors, agents, subagents, or individuals within the confines of the United States o1· its ir~ular possessions or territories; 

(d) Those engaged in wholesale distribution who further the n~anvfacture of handkerchiefs by any of the following nwnufacturing 

1>·rocesses, but without limitation: cutting, stitching, ironing, folding, 

pressing, tying, packaging, bowing, ernbellishing, or otherwise 

finishing . 

2 Italicized words added by Amendment No. 2, approved Oct. 31, 1934. 

(1 ) 
2 

(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.2 

3. The term "employee" as used herein includes any person engaged in any phase of the industry, in any capacity, receiving compensation for his services, irrespective of the nature or method of 

compensation. 

4. The term " employer " as used herein inc,ludes any one for 

whose benefit or on whose business such an employee is engaged. 5. The term "Southern Section of the United States" as used 

herein shall include the States of Alabama, Florida, Georgia, 1\:entucky, Louisiana, Mississippi, North Carolina, South Carolina, 

Tennessee, Texas, and Virginia. 

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

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

the Administrator of the National Recovery Administration or his 

du.ly authorized Deputy, and the National Industrial Recovery Act. 

7. The term "effective date" as used herein shall mean and this 

Code shall become effective on the tenth (lOth) day after this Code 

sha.ll have been approved by the President of the United States. 

ARTICLE III-HoURs OF LABOR 

1. Except as hereinafter provided, no employee shall work, or be 

permitted to work, in excess of eight (8) hours in any twenty-four 

( 24) hour period, or in excess of forty ( 40) hours in any one week. 

Overtime is expressly prohibited, except as hereinafter provided. 

2. No member of the industry shall operate any machine employed 

in the manufacture or embellishment of handkerchiefs, whether operated by power or by hand, on a schedule of more than one shift 

of forty ( 40) hours in any one week, except that, for a limited time 

or times, due to emergency arising through accident or similar cause, 

the Code Authority may, upon the express approval of the Administrator, authorize the operation of machines for more than forty ( 40) 

hours per week. 

3. Members of shipping crews sha.ll not work, or be permitted to 

work, in excess of forty (40) hours in any one week or more than 

eight (8) hours in any twenty-four (24) hour period, except that 

snch employees 1nay be permitted to work forty-eight ( 48) hours per 

week during a maximum of sixteen (16) weeks in any calendar year, 

provided, that for any and all such overtime work, such employees 

shall be paid at not less than the hourly rate payable to them for 

the regular forty ( 40) hour week. 

4. Members of repair-shop crews, machinists, electricians, and 

drivers shal,l not work, or be permitted to work, in excess of fortyfive ( 45) hours in any one week, except that persons employed in 

such capacities may be employed in excess of this schedule in caE:.e 

of emergency arising through accident or similar cause. Overtime 

shall be paid for at not less than the regular hourly rate for such 

employee. 

5. No employee shall work or be permitted to work for a total 

number of hours in exce s of the number of hours prescribed for 

each week and day, whether employed by one or more employers. 

11 See footnote, p. 1. 
3 

6. The provisions of this Article shall have no reference to members of outside sales force or to watchmen. 

7. The provisions of this Article shall have no reference to executives, or to persons in administrative or supervisory capacities, or 

to engineers or firemen, provided such persons reoeive not less than 

twenty-five dol,lars ($25.00) per week. 

8. The provisions of this Article shall not apply to manufacturing 

operations carried on outside the Continental portion of the United 

States. 

9. No employee slwll work or be permitted to w1ork in any factory 

on any Saturday or Sunday except such employees for wh(}m specific 

provision is made in this Section and in Sections 6 and 'l 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 Satwrday. No such employees 

shall be permitted to work in any case in excess of forty (40) ho·urs 

in any one (1) week, including the hours that have been wo'rked by 

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

a legal or religious holiday occurs the Code Authority 1nay permit 

work to be done on a Saturday of such week. 2 

10. E xcept as herein provided no work shall be done in any factory 

except between the hours of 8 A. M. and ~ noon and between the 

lwurs of 1 P. M. and 5 P. Jl!. 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 R ecovery 

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

?tO case slwll the lunch period be less than one hour and Vn, no case 

shall such standard hours exceed 8 hours per day. 2 

ARTICLE IV-WAGES 

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

the United States other than the Southern Section as defined in 

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

rate of thirteen ( $13.00) do.llars per week of forty (40) hours nor 

t5hall any employee engaged in the Soutltern Section of the United 

States be paid at less than the rate of twelve ($1 .00) dollars per 

week of forty (40) hottrs. · No member of the industry shall make any deduction fr(}m the 

~w ages of any employee because of spoilage or because of the infraction of any rule where the effect of such deduction wou.ld be to 1'educe 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 ( incl~tding records of hours worked) and shall su,bmit reports based thereon at four weekly intervals to the Confidential 

A.gency.2 

2. In the event that the differentials herein provided between the 

Southern and other sections of the United States result in an unfair 

disadvantage to any section, the Administrator may~ either on the 

recommendation of the Code Authority or at his own instance, make 

11 See footnote, p. 1. 
4 

such wage readjustments as may be necessary to maintain the proper 

competitive relationship between sections of the country. 

3. Each 1nember of the industry shall file with the Confidential 

Agency of the Code Authority duly certified schedules of rates of 

J->ay for piecework production for each type of standard ope1·ation 

in force in his plant (including ho1nework, if any and where per1nissible), and shall advise said Agency of any change or alteration 

'which nwy at any ti1ne be 1nade in such schedules. Said Confidential 

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

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

ordered by the Nationallnd'ustrial R ecovery Board, said Confidential 

Agency shall in no case disclose the na1ne of anyone to whom any 

key nu1nber may have reference. 2 

4. No learner engaged in the actual manufacture of handkerchiefs shall be paid at less than the rate of nine dollars ($9.00) per 

week of forty ( 40) hours. A person shall be deemed a learner for 

no more than eight (8) weeks. Any time worked by a learner shal.l 

be deemed a part of his learning period, whether such time is 

worked continuously or in more than one shop or for more than 

one employer. The number of learners in any one plant at any 

operation shall not exceed ten per cent (10% ) of the total number 

of employees engaged in said operation in said plant. 

5. The wage rates for occupations other than those receiving the 

minimum wage herein prescribed, shall at least maintain the difference in earning for those occupations for a full-time week existing 

on July 1, 1933; provided, however, that these rates shall be subject 

to reconsideration for adjustment by the Code Authority and by 

the Administrator. Subject to review by the Code Authority and 

by the Administrator, no employer shall reduce the weekly compensation for employment now in excess of the minimum wages 

hereby agreed to, notwithstanding that the hours worked in such 

employment may hereby be reduced. 

6. No employee shall be paid less than the minimum rate of wages 

set forth in this Article regardless of whether such employee is 

compensated on a time-rate or piece-rate basis. 

7. A person whose earning capacity is limited because of age, 

physical or mental handicap, or other infirmity, may be e'rnployed on 

light work at a wage belo1v the 1nini1nu11~ established by this Code, 

if the employer obtains from the State Authority designated by the 

United States Department of Labor, a certificate authorizing such 

person's employment at such wages and for such hours as shall be 

stated in the certificate. Such Authority shall be guided by the ·in-

::;tructions of the United States Department of Labor in issuing 

certificates to such person. Each employer shall file monthly, with 

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

sho'Lving the wages paid to, and the nwxi11wm hours of work fm· 

such employee. 2 

8. (a) E xcept as hereinafter provided, no 1ne1nber of the industry 

shall manufacture or finish or cause to be m,anufactured or finished 

any handkerchief by means of home labor, except that handkerchiefs 

made entirely by hand 1nay be manufactured at home.1a 

2 See footnote, p. 1. la Temporarily stayed. (See order approving this amendment, p. 18.) 
5 

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

1nay be perrn.titted to engage in homew01·k at the same rate of wages 

as is paid for the same type of w01·k performed in the factory or 

other regular place of business if a home-1-00rker's certificate is 

(lbtained from the State Authority or other officer designated by the 

United States Depart1nent of Labor, such certificate to be granted in 

accordance with instructions issued by the United States Department 

of Lab or, provided 

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

or other regular place of business and is free from any co11.iagiott-S 

disease; or 

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

are absolutely essential for attendance on a person who is bed'ridden 

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

disease, or because of the necessity of caring for 1ninor children or 

dependents unable to leave h01ne. 

Any e1nployer 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. 2 

9. The provisions of this article shall not apply to manufacturing 

operations carried on outside the Continental portion of the United 

States. 

ARTICLE V-MINIMUM AGE 

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

the Indtt8try. In the event of a claim, of alleged violation of this 

section, an employer shall be deemed to have complied with the p1'0- 'Visions of this section if he shall have on file and maklf3 available for 

inspection by the Confidential Agency a certificate of age i._r.;sued by 

the duly authorized department of the State in which the employe?· 

operates, showing the age of the em,ployee at the ti1ne of entering 

S?-tch employment to be no less than the age required by thi8 sif3c tion. 2 

ARTICLE VI-ADMINISTRATION 

1. To further effectuate the purposes of the Act, a Code Authority 

is hereby constituted to cooperate with the N ationaZ Industrial Recovery Board in the Administration of the Code. Said Code Authority shall consist of not 1nore than thirteen (13) mernbers to be elected 

in the manner hereinafter set forth: 

(a) Nine (9) members and two (2) alternates shall be appointed 

by the Board of Directors of the Handkerchief I ndustry Association, 

Inc. 

(b) One {1) nw1nber shall be appointed by the National Industrial 

R ecovery Board on the n01nination of the Labor Advisory Board 

of the National R ecovery Administration. 

(c) In addition to the foregoing, the National Industrial R ecovery Board may appoint not rnore than three ( 3 ) m e1nbers without 

vote to represent the National Industrial R eco·ve1'Y Board and or 

such groups or inte1·ests as it may designate.

2 

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

representative of the industry and in other respects comply with 

, See footnote, p. 1. 

124920°--1603-118----35----2 
6 

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. 

3. Each trade or industrial association participating in the selection or activities of the Code Authority shal,l: (1) impose no 

inequitable restrictions on membership, and (2) submit to the 

Administrator true copies of its articles of association, bylaws, 

regulations, and any amendments when made thereto, together with 

such other information as to membership, organization, and activities 

as the Administrator may deem necessary to effectuate the purposes 

of the Act. 

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

determine that a;ny action of the Code Authority or any agency 

thereof may be unfair or unjust or oontrary to the public inte1•est, 

the National Industrial Recovery Board may require that such action 

be suspended to afford an opportunity for i1VVestigation of the merits 

of each action and further consideration by the Code Authority 

or agency pending final action which shall not be effective unless the 

National I ndust1'ial R ecover·y 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. 2 

5. Subject to such rules and regulations as rnay be issued by the 

National Industrial Recovery Board, the Code Authority shall have 

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

uther provisions of the Code. (a) To incorporate itself, the Code Authority rnay incorporate 

under the latus of any State of the United States or of the District 

of Columbia, such 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 Oode,o p'rovided further that the Code 

Authority shall submit to the National Industrial Recovery Board, 

for its approval, its proposed Certificate of Incorporation and proposed by-laws, and no mnendn~ent of either shall be made without 

the like prior approval of the National Industrial Recovery Board. 

If at any time, the National Industrial R ecovery Board shall determine that the corporate status accrued by the Code Authority is 

interfering with the proper exercise of its powers and duties under· 

this Code, or with the effectuation of the policies o1· purposes of the 

Act, it may, after such notice and hearing as it rnay deern necessary, 

r·equire an appropriate modification of the structure of the CorporaNon (if consistent with the law of the State of Incorporation), the 

substitution of a corporation created under the laws of another State 

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

of a non-corporate Code Authority truly 1·epresentative of the Indust?•y or such other actions as it may deern expedient. 

2 See footnote, p. 1. 
7 

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

consider advisable, to set up rules for its own procedure, and to 

provide for its continuance as the admmistrative agency of (his 

Code in accordance with t'he terrns of the Act a~nd the princtlples 

herein set forth. 

(c) To adopt by-laws, and rules and regulatiom for its pr11r:P-rlure 

and for the administration and enforce?nent of this Code and to submit the sa1ne to the National Industrial Recove1"Y Board for its approval, toqether with true copies of any amendments or additiom ,u,hen 1nade thereto, and minutes of meetings when held, and such 

other information as to its activities as the National Industrial Recovery Board may deem necessary to effectuate the purposes of the 

Act. 

(d) To insure the execution of the provisions of this Code and to 

provide for the Compliance of the Industry with the provisions of 

the Act. 

(e) To select a Confidential Agency. The Aqency shall in no 

'1J..'ay be engaged in the industry or connected with any member 

thereof. The Code Authority shall furnish said Agency with such 

credentials as a1·e necessary to facilitate its operations. 

The Confidential Agency shall obtain from all members of the 

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

1tnder this Code and under the Act. All individual reports shall be 

held as secret and confidential between the Agency and the reporting 'members, ewcept as hereinafter provided. 

Each 1nember of the i'fldustry shall maintain accurate and cmnplete 

?'ecords of its transactions wherever such records may be required 

under any of the provisiom of this Code, and shall fwrnish accurate 

1·eports based upon such records concerning any of such activities 

11 hen 1·equired by the Code Authority 01· the National Indust1-ial 

Recovery Boa1·d. If the Code Authority or the National Industrial 

Recovery Board shall deter1nine that substantial doubt ewists as to 

tlw accuracy of any sttwh report, so much of the pertinent books, 

records, and papers of such member as may be required for the vm'ification of such report may be examined by an V!npartial agency 

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

absence of agreement, appointed by the National Industrial Recovery 

Board. In no case shall the facts disclosed by such ewami'IUltion be 

made available in identifiable form to any competitor, whether on 

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

ewcept S'uch as may be required for the proper administration ana 

enforcement of the provisiom of this Code. 

In addition to information required to be submitted to the Code 

Authority, members of the industry shall furnish such statistical 

information as the National Industrial R ecovery Board mALy deem 

necessary for the purposes recited in Section 3-A of the Act, to such 

Federal and State Agencies as it may designate; provided that noth-

'ing in this Code shall relieve any member of the in<Vustry of any 

obliqations to fu1·nish reports to any government agency. 

(f) To secure f1•om the Confidential Agency consolidated reports 

i11 respect to all matters pertinent to this Code. 

(g) To submit reports either di1•ectly to the National Industrial 

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

reports be of a secret or confidential nature), in such form and at 

such time as it may require, in order that the President may be kept 
8 

infor?ned with respect to the observance or non-observance of the 

Oode and of the Act. 

(h) To di1·ect the 0 onfidential Agency to make surveys and investigations, compile reports, collect statistics in such manner and under 

such regulations as tlte Oode Authority may prescribe, subject to 

disapproval of the National Industrial Recove-ry Board. 

(i) To create, subject to the approval of the National Industrial 

R ecovery Board, a Trade Practice 0 om plaints C om;mittee which shall 

in,vestigate all alleged violations of this Oode other than alleged 

labor violations, and act upon the results thereof, and, if the findings 

justify, to trans1nit said findings to theN ational I ndustrial Recovery 

Board and to any other proper Govern1nental agency. 

(j) To use such t1·ade associations and other agencies as it deems 

proper for the carrying out of any of its activities pro'uided for 

herein, provided that nothing herein shall relieve the Oode Authority of its duties or responsibilities under this 0 ode and that sucl1. trade associations and agencies shall at all times be subject to and 

co1nply with the provisions hereof. 

(k) To make recommendations to the National I ndust1-ial Recovery Board for· the coordination of the administration of this Oode 

'with such other codes, if any, as may be related to or affect members 

of the industry, or any sttbdivision thereof. 

(l) It being found necessary, in order to support the ad?ninistration of this Oode and te 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 incwr such reasonable 

obligations as are necessary and proper for the foregoing purposes 

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

hereinafte?' provided ar~cl which shall be held in trust for the purposes of the Codej ) To submit to the National Industrial Recovery Board for its approval, subject to such notice and opportunity 

to be heard as it nwy deem, necessary, (a) an itemized budget of its 

estimated expenses for the foregoing pu1·poses, and (b) an equ.itable 

basis upon which the funds necessary to support such budget shall 

be contributed by nu 1nbers of the industry j and ( 3) Afte1· such 

b1tclget and basis of contribution have been appro~·ed by the National 

Industrial Recovery Board, to determine and obtain equitable contribution as above set forth by all such members of the industry, and 

to that end, if nec s~ary, to institute legal proceedings therefor in 

its vn nanM. 

Each 17M1nber of the industry shall pay his or its equitable contri- ~ution to the expenses of the maintenance of the Oode Authm"ity, 

determined as hereinabove provided, and subject to rules and regulations pertaining ther eto issued by the National I ndustrial Recovery 

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

cont1-ibuting to the expenses of its administration as hm·einabove 

provided (unless duly exempted from 1naking such contributions), 

shall be entitled to participate in the selection of nMm bers of the 

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

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

R ecovery Administration. 

The 0 ode A u.thority shall neither incur nor pay any obligations 

substantially in excess of the a;mount thereof as estimated in its 
approved budget and shall in no event exceed the total amount con~ 

tained in the app1•oved budget, except upon approval of the National 

Industrial Recovery Boardj and no subsequent budget shall conta~n 

any deficiency item for expenditures in excess of prior bttdget esti- mates, except those which the National Industrial R ecove'ry B oaTd 

shall have so approved. 

(m) To cause to be formulated methods of cost finding and accounting capable of use by all 1nembers of the industry, and to sub1nit such methods to the National Industrial R ecovery BoaTel for 

1•eview. If approved by the National Industrial Recovery Board, 

full information conceTning such methods shall be made available 

to all 1r~embers of the industry. Thereafter, each members of the 

industry shall utilize such methods to the extent fownd practicable. 

Nothing herein contained shall be construed to per1nit the Code Autlwrity, any agent thereof, or any member of the industry to suggest 

uniform additions, percentages or differentials 01' other wnifo1•m 

items of cost which are designed to bring about aTbitrary unifonnity of costs or prices. 

(n) To 1nake compl-aint to the President on behalf of the Industry, in accordance with the provisions of Section 3 (e) of the Act, 

whenever any article is belng imported into the United States in 

substantial quantities or increasing ratio to domestic production of 

any c01npetitive article or articles and on such terms or under stteh 

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

to secure from rill members of the indust?'Y, through the Confidential 

Agency, all information necessary to support such c01nplaint. 

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

fair practice as 1nay be necessary, which agencies shall cooperate 'with the Code Authority in developing fair trade p1·actices and ind,ustrial planning, including the regularization and stabi.lization of 

employment for the industry. 

(p) To appoint a Trade Practice Committee which shall 1neet 

'with the Trade Practice C omndttees appointed under such other 

codes as may be related to the industry for the purpose of fonnulating fair trade practices to govern the relationships between en1- ployers under this Code and employers wnde1· such other 0 odes to 

the end that such fair trade practices may be p1·oposed to the 

National Industrial Recovery Board as an1endments to this Code 

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 rnay be approved by the National Industrial R ecover?} 

Board. 

(q) To initiate, consider, and make recom1nendations for the 

1nodi[ication or mnendment of this Code, which nwdifications o1· 

amend1nents shall become effective as part hereof upon approval by 

the National Industrial Recovery Board after such notice as it 1nay 

specify. 

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

prescribe rules of procedure and rules to effect compliance with 

awards and determinations. 
10 

( s) I n order to a.s i t in maki,Ig tfective the 1·eports from the 

indu try and in elim,inating unfair cornpetition the ode Authority 

may appoint a c01nmittee so con tituted as to gi e con.swner and 

go ernmental rerre entation ati facto-ry to the .. Yati.o7Wl I ndu trial 

R ecovery B oard to make a study with a view to the establi hntent 

of cla ifications and standards of quality and ize of staple products 

of the industry wherever such standards are dee·med feasible . T he 

7mdings and recomntendations oi thi committee shall, be ubrnitted 

to the National l ndu.st1·ial Recove1·y B oard and after s-uch hear·ings 

and investigations a.s it may designate and upon approval by it 

shall be 1nade a part of thi.s Code and shall be binding upon e ery 

member of the indu.st·ry.

2 

6. othing contained in thi.s Code shail con.stitute the 112embers of 

the Code A uthmity partners for any purpose. 7'V or slwll any m,em,-

ber of the Code A uthority be liable in any nw.nner to anyone for any 

act of any other nwmbe1· officer agent. or employee of the ode 

A uthority. •ror shail any mmnher of the Code Autho1·ity be liable 

to anyone fm· any act or omiss-ion to act under this Code, except for 

his own willful 1'7Wlfeasanoe o-r non-feasance.

2 

7. T here slwll be established an I ndustrial R elations Committee 

f or the I ndustry which slwil co-ns-ist of an equal number of representati'ves of employers and employees and an impartial chairman. T he JTational i ndustnal R ecovery B oard shall appoint such impa1·tial 

chairman upon the failure of the co-mmittee to select one by ag1·ee- ment. I f no t1·uly 1•epresentative labor organization ewists the em- ployee nwmbers of s-uch board nwy be n01ninated by the L abor .Ad- isory B oard of the iV. R. A . and appointed by the 7'Vational l ndus- trial R eco-very B oard. T he e1nployer representatives shall be chosen 

by the ode Authority. uch committee shall deal with complaint 'relating to labo-r in acco1·dance with 1vules and regulatio-ns issued by 

the i\ ational hulu.strial R ecove7'Y B oard. The I ndustrial R elations 

Committee may estriblish uch divisional 1·egi.onal and local indus- trial adjustment agencies as it 1nay deem desirable, each of which 

shall, be co-nstituted in like manner as the I ndustrial R elations 

Committee. 2 

ARTICLE VII-TR.illE PRACTICES 

1. 1\ o member of the I nd-ustry shall directly or indiTectly give, permit to be given, or offer to give anything of value jo1· the purpose 

of influencing 01' rewarding the action of _any employee agent or 

representative of another in 1·elation to the business of the employer 

of such employee the principal of Slteh agent . or the ?'epresented 

party witho-ut the knowledge of such entploye7>, p1incipal or party. T his pro-vision shall not be con~ trued to p1·ohibit free and genm'al 

distribution of articles co-mmo-nly used for advertising except so far 

as such articles are actually used for com11tercial bnbe1:; a.s hereinabove defined. 

2 

~. 1 o member of the industry shall make or allou. to be made any 

payments or allowance of rebate refunds commissio-ns credits or 

unearned disco-unts whether in the f01'm of nwney 01' otherunse or 

extend to certain purcha.se1's any special services or privileges not 

emtended to all purchasers on like te1•ms and condition-s. No member 

2 See footnote, p. 1. 
11 

of the Industry sluill allow buying commissions, rebates, extra discounts, or other concessions to purchasing agents or to p'ttrchasing 

agencies. 2 

3. No member of the industry shall extend to a buyer the right 

to confirm a proposed purchase for a period of more than thirty 

(oO) days from the date when said buyer placed the order as subject 

to further confirmation. No option shall be extended to a buyer for 

more than thirty (30) days. 

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

merchandise delivered and no price guaranty shall be given against 

decline on orders booked for future delivery. 2 

5. No member of the Industry shall accept the return of 1nerchandVJe sold to a customer in good faith and shipped in accordance with 

specifications, order, or contract. In no event shall any 1nerchandue 

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

(10) days after receipt of the merchandue, unless the said merchandise u returned because of hidden defects effecting the salability of 

the merchandue. 2 

6. No member of the industry shall accept the return of merchandise for exchange. 

7. No member of the industry shall disseminate, publish, or circulate any materially false or misleading information relative to any 

product of a competitor or the credit standing or ability of a competitor to perform any work or manufacture or produce any product, 

or to the conditions of employment among the employees of a 

competitor. 

8. No member of the industry shall ship handkerchiefs which do 

not conform substantially in quality and value to the sample submitted or to the representations made prior to securing the order, 

except with the knowledge and consent of the purchaser. 

9. No member of the industry shall make any sale or contract of 

sale of any handkerchief under any description which does not substantially describe such article in terms customarily used in the 

industry. 

10. No member of the industry shall use any work, name, label, or 

brand indicating a place or country or origin or type of a handkerchief, associated in the trade with a place or country or origin, except 

as to articles actually made in said place or country of origin. 

11. No member of the industry shall maliciously induce or attempt 

to induce the breach of an existing oral or written contract between 

a competitor and his customer or source of supply, or interfere with 

or ~bstruct the performance of any such contractual duties or 

serv1ces. 

12. No member of the industry shall willfully aid or abet another 

member of the industry to commit any unfair practice. 

13. No member of the industry shall accept from a purchasing 

agent or purchasing agency any order for merchandise designated for 

or addressed to the account of another member of the industry without the knowledge and consent of such other member of the industry. 

14. No member of the industry shall use the word "Hand Rolled 

Hem" to designate that class of handmade hem known as" Whipped 

Edge", which latter term means any hem or edge on which the 

2 See footnote, p. 1. 
12 

thread used to :fasten same is whipped or ,looped around and encloses 

the entire rolled edge. 

15. No member o:f the industry shall :falsely mark or brand any 

product of the industry with the tendency to mislead or d€ceive 

customers or prospective customers as to the grade, quality, quantity, 

substance, character, natur.e, origin, size, finish or preparation o:f any 

product of the industry, or otherwise. 

16. No member of the industry shall make or cause to be made 

or knowingly permit to be made or published any false, materia,lly 

inaccurate, or deceptive statement by way of advertisement or otherwise, concerning the grade, quality, quantity, substance, character, 

nature, origin, size, finish or preparation of any product of the industry, having the tendency or capacity to mislead or deceive purchasers or prospective purchasers. 

17. All specifications as to size of handkerchief, count o:f cloth6 type of cloth, whether combed or carded, as well as the number or 

stitches on the hem, shall be in substantial conformity with samples 

or specifications submitted by seller to buyer. There shall be a 

reasonable tolerance for variations resulting from the manufacturing processes. All shipments of handkerchiefs embellished with 

initia.ls or other embroidery shall conform to types as specifi€d, 

whether hand-machine or so-called "hand-loom embroidery" or 

Schiffii machine embroidery or all-hand embroidery. Misrepresentation of type or methods of process of embroidery is prohibited. 

Substitution of one type of embroidery for another is likewise prohibited. The designation of linen qualities by Counts or Setts is not 

permissible, unless such Counts or Setts contain the standard number of threads to the square inch and unless the yarn numbers in 

such Counts or Setts are those generally used in the Irish Linen 

Industry in the weaving o£ such Counts or Setts and are recognized 

by the Irish Linen Weaving Industry as standard. 

18. Samples shall be furnished at the same price as the merchandise, if said samples are made in accordance with the seller's makeup. No member of the industry shall absorb any part of any increase in the cost incurred by the seller for samples other than those 

o£ his usual make-up. Samples shall be given to purchasers or retailers only when accompanied by a stock order based upon the said 

samples. 

19. (a) If the Administrator, after investigation, shall at any time 

find both (1) that an e?nergenrnJ has arisen within the industry adruersely aff ecting snwll enterprises or wages or labor condition, or 

tending toward 'monopoly or other acute conditions which tend to 

defeat the p'U?'poses of the Act/ and (2) that the determination of a 

stated ndnimum price for a specified product within the industry for 

a li1nited period is necessary to 1nitigate the conditions constituting ~,-·uch enMrqency and to effectuate the purposes of the Act, the Code 

Authority n~ay cause an impartial agency to investigate costs and to 

recommend to the Adn~inistrator a determination of a stated ?nin-imum price of the produ.ct affected by the e?nergency and the1·eupon 

the Administrator may proceed to detern~ine such stated mini?nwm 

price. 

(b) When the Administrator shall have deter1nined such stated 

minimwm price for a specified product for a stated period, wlvich 

price shall be reasonably calculated to mitigate the conditions of such 
13 

emergency and to effectuate the purposes of the National I ndustrial 

R ecovery Act, he shall establish such price. Thereafter, during such 

stated period, no m,ember of the industry shall sell such specified 

products at a net realized price below said stated minimum price and 

any such sale shall be een~ed dest1·uctive price cutting. F1·o1n time 

to time, the 0 ode Authority 1nay rec01nmencl 1·eview or reconsideraiion or the Ad1ninist1·ator nwy cause any detenninations hereunder 

to be 1•eviewed or r considered and app?'Op?'iate act·ion taken.

1 

20. Nothing in this Code hall limit the effect of any adjudication by the Court or holding by the F ederal Trade Commis ion 

on complaint, finding, and order, that any practice or method is 

unfair providing that uch adjudication or holding is not inconsistent with any provision of the Act, or this Code. 

1. No 17U?nbe?' of the I ndust!Y shall deviate from the price fixed 

by a contTact. All cont1·acts andjor orders shall be binding in 

acco1·dance with the provisions thereof. 2 

92 . No nw1nbe1' of the I ndustry shall accept the attem,pted cancellation of a contract wheTe the effect of such cancellation would be 

to circumv nt any provisions of this Code.

2 

2 . . No 1nem.ber of the I ndustry shall ship merchandise on consign-

?nerd or 1n nwPandum. 2 

ly. No 1n 1nber of the I ndustry shall p1·ocure or· attempt to JJrocure, any infonnation concerning the business of another 111e1nbcr 

which is properly Tega1·ded by such n~embe?" as a trade secret or 

conficl ntial within its oTganization (except on consent of such 1nen~b eT ) . 

2 

5. ;ro nw1nber of the I ndustry shall pack handkerchiefs not of 

fir t quality in s al d cm·tons o1· envelopes or in any other ea2ed 

c·ontainers so that the whole oT pm·t of the handkerchief is not easily 

accessible fo1' exwnination unless said individual containe1~s aTe 

clearly 17W7'ked ' seconds" oT otheTwise appropriately designated as 

containing 1nerclwndise other than ' firsts ".

2 

26. (a) lVhen the basic fab1·ic fro?n 'which a handkerchief is manufactured, e77l.bodies in either the warp O?' the filling, or both, nwre 

titan one kind of yarn, no nwtter fr01n ~ohat fibre or filmnents the 

yarn nwy be spun, the handkerchief nwnufactu?·ed from such fabric 

shall not be labelled 07' by any fo1·n~ of phraseology be designated or 

1'efe1·red to by the name of any one only of the con1ponent fib1·es or 

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

the fabric, and p1·ovided f u7·ther, that unless the fabric is genuinely 

100% of any fibre 01' filmnent designation (linen, cotton, silk, 1·ayon, 

etc.) exclusive of 1·egular selvage, except as hereinaft e1' provided fo?' 

fancy woven materials, the actual percentage by th1·ead count of any 

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

1Jro1nin ntly indicat d on any label 01' ticket identifyinr; the handlceTchiefs manufactttred f1'01n such fabric. 

I n the case of fancy woven 1naterials, in which the warp and the 

filling of the plain weave are made f?'O?n ya1"ns of the sanw jib1·e 

wh the1' the fancy lements are plain corded or fa11 cy boTders, 01' all~ ove1' effects, ·uch as checks or plaids, and are made of yan~s of other 

1 Italicized words added by Amendment No. 1, approved Oct. 3, 1934. 2 See f<>otnote, p. 1. 
14 

fib ·res O'l' filaments only the true fab'l·ic na11W of the plain weave may 

be de ignat d, if only one fibre elem. nt · pecifi d on the label. 

The above p1·ohibitions shall not apply to 1nerehandi e deli·vered 

on o1· b fm·e D ce1nb r 31 t 1934 provided that ections 1 and 19 

of this A1·ticle are not violated. (b) The elem-ent u ed for appliques, entb?·oiderecl en1b lli h1nents, 

lace coTner lace edge or any mat 'l'ial attached in any way to complete the handke?·chiefs, hall not be con ·ide1· d as af! cting the true 

designation of the basic mate1·ial as h 1' in pecified. (c) Jro me1nbe·r of the I ndu try shall use Zabel the ~uo?·ding of 

~chich e1nphasizes in any 'IJWnneT a minm· elem.ent in the nwnufactu?·e, 

construction 07' finish of the handkerchief fabric or in the proce sing 

o?' en1bellishment of the handkerchief itself ~uhich descriJJtive ~uord

ing 1nay have a tend ncy to induce a purchase?' to believe that the 

said wording applies to the handkerchief as a 1 hole or to the basic 

fab?·ic 7'eferred to in paragraph nw1·k ed ':a ' of thi ection. (d) i\!o 1nen1b 1' of th l ndu t?·y shall so label handkerchiefs, 

8pecia1ly 01' otheru'ise at the 1' quest of any lJUrclwseT 07' purcha ing 

agency as to in any way conflict ~ ith th e pro ision of this ection.

2 

7. 'o 1ne1nb 7' of the l nd7.tstTy sha11 in sampling fanmJ white 

satin strips m· prints or ~ hire co7'Cls oT colored cords or colored 

woven borde1·s in eTt mnples in swnple fold 7'S so as to cone al f'ront 

the pTospecti e customeTs the fact that one ide of the ha1ul'h erchief 

is 1·aw sel age un titched 1t,nle a con pimwus label or ma7'king of 

s01ne kind i placed on the handk erchief indicating that only th1·ee 

sides of the handke1·chief a1·e i nwned.

2 

0 . The Oode AuthoTity shall create, subject to the app1·o al of the 

National l ndu t1·ial R ecov ?'Y Board, appTolJ7'iate 1' gulations and 

facilities fo?' the 1·egi t1·ation of new 01' o1·iginal styles, designs 01• 

patterns of handkerchiefs. Upon the creation of stwh regulations 

and faciliti es and upon the appToval thereof by the National Industrial R ecov ry Board, no 1n 1nber of the I ndu,stry othe1· than the 

'J·egisteTin g mem.ber shall 17Wnufacture or cause to be manufactured 

any hand"A·e1·chiefs incorporating any such new 01' original styles, designs, or patte1'71S as may be 'l'egiste?·ed as he1·einabove p1·ovided, 

except ~tpon the written con ent of the registering 1nember.2 

ARTICLE VIII-TERMS OF s LE 

Mawimwm ter771S of sale fo?' thi' I nclust?'y shall bel. Net cash ten (10) days; 07' with an equalizing dijfe1·ential in the 

price, two pe7' cent ( %) ten (10) clays-sixty (60) extra/ or two 

and one-half pe1· cent ( liz o) ten (10) days- thirty (30 ) extra · o?' 

th?·ee pe1· cent (37c ) ten (10) days;" or 0 . 0 . D. thY e per cent (3% ). 

The cash· disco,unts as outlined in this ection hall be inte7'p1'eted 

as maxin1u1n discounts allowed 1.mder this A7·ticle. ~1 embers of the 

ln dust?'Y shall be p r1nitt d to ll at te1 ms other than those speci- fically stated in this Article provided, ho~oever, that such te1'7718 shall 

not b '17W1'e advantageous or mor lib Tal than those t 1'7ns specified 

in this A1·ticle, and further, that such dating shall not in any case 

exceed seventy ( 0) days fTo1n date of billing of 1ne1'chandise to the 

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

excess of three per cent (3% ) .

2 

2 See foOotnote, p. 1. 
15 

2. All the above terms shall be effective from date of invoice or 

of shipment, whichever may be earlier. 

3. Extra dating is expres ly prohibited. 

4. The terms for the members of the industry described in Section 2 (b) of Article II hall be net ca h within ten (10) days. 

5. No member of the Ind'ustry shall allow discount if bill is not 

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

account is dtte and payable. 2 

6. Members of the indu try hall charge leaal intere t on all past 

due accounts, which charge shall accrue at maturity of bill plus five 

days grace. 

7. No member of the industry shall allow anticipation exceeding 

six percent (6%) per annum. 

8. No member of the industry shall violate any of the provisions 

of this Article, directly or indirectly, either by false bookkeeping 

methods or otherwise. 

9. All shipments shall be F.O.B. point of origin, except that shipments of packaged, trade-marked handkerchiefs distributed directly 

to the retailer by the manufacturer may be F.O.B. destination. The 

term "packaged, trade-'rnarked handkerchiefs ' as used herein, shall 

mean and include one (1), tv. o (. ), or three (3) handkerchiefs completely encased in a carton or sealed env elope wrap, which carton 

or wrap bears thereon the trade-1nark of the member of the Industry 

and a suggested retail prioe. 2 

10. No member of the Indust1·y 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.2 

11. The seller shall designate the terms of payment under which 

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

Article.2 

12. A member of the Industry 1nay bill merchandise shipped on or 

after the 25th of the nwnth as of the first of the following month.2 

ARTICLE IX-NRA LABELS 

1. Hereafter, the Oode Authority may apply to the National Industrial ·Recovery Board for grant of the necessary authority and 

exclusive right to issue and sell N RA labels, 01· authorized substitutes 

therefor, to members of the Industry; and, upon the issuance of appropriate orders by the National Industrial Recove1·y Board, under 

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

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

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

or said authorided substitutes to the members of said Industry; and 

thereafter all merchandise manufactured sub_ject to the provisions of 

this 0 ode shall bear on the carton containing such merchandise, or 

i·n such other place as the Oode Authority, subject to review by the 

National Industrial Recovery Board, may designate, an NRA label, 

or an authorized substitute therefor, to symbolize to purchasers of 

said merchandise the conditions under which it has been manufactured.2 

• See 1iootnote, p. 1. 
16 

13. 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 1nay hereafter be issued 01' 

approved by the National Industrial Recovery Board: 

(a) Each label shall bear a registration number or numbers especially assigned to each 1nen~ber of the industry by the Code At~­

tlzority, or a serial number, and shall re1nain attached to all such 

1nerchandise when sold to the retail distributor. 

(b) Any and all members of the I ndustry 1nay apply to the Code 

Authority for a permit to use such N RA label, hich permit shall 

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

Code. 

(c) For the purpose of ascertaining the right of n~bers of the 

Industry to the continued use of labels and of protecting pttrchasers 

of 1nerchandise bearing such labels and of insuring to each individual 

1nember of the Industry that the symbolism of such label will be 

maintained by virtue of c01npliance ~oith the provisions of this Code 

by all1nembers of the Industry using said label, the Code Authority 

shall establish rules and regulations and appropriate machinery fo r 

the issuance of labels and the inspection, exa1nination and supervi- sion of the practices of n~b rs of the I ndustry_. 

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

be subject to the appro1Jal of the National I ndustrial R ecovery Boanl. 

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

and regulations governing the issttance and use of said labels shall 

at all tin~es be sub.fect to rules and regulations issued by the National 

I7i dustrial Recove?!J Board. 2 

ARTICLE X 

1. 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 ~mployers 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. 

2. No employee and no one seeking employment shal.l 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. 

3. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

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

subject to the right of the President, in accordance with the provision of subsection (b) of Section 10 of the National Industrial 

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

approval, license, rule~ or regulation issued under Title I of said 

Act and specifically, but without limitation, to the right of the 

President to cancel or modify his approval of this Code or any conditions imposed by him upon his approval thereof. 

5. Within each state, no provision of this Code shall supersede 

any laws of such state imposing more stringent requirements, regu2 See fiQotnote, p. 1. 
17 

lnting the age of employees, wages, hours of work, or health, fire, 

or general working conditions, than under this Code. 

6. No member of the industry shall manufacture, or cause to be 

manufactured, any handkerchiefs, in whole or in part, in any prison, 

p1·ison camp,. penitentiary, reformatory, or other penal institution, 

or in any place by means of prison labor. 

7. No work shall be done or be permitted to be done in any base- ments, un anitary building , buildings unsafe on account of fire 

risks, or otherwise dangerous. In any state in which buildings used 

in the indu try, including dwellings, are ubject to inspection by the 

Department of Labor of such state, or of the Government of the 

United States, no work hall be done in uch building or dwellings 

without the provisions relating to such inspection having first been 

complied with, and proof of such compliance having been supplied 

to the Code Authority. 

8. Any employer who at any time shall manufacture any article 

or articles subject to the provisions of this Code, shall be bound by 

all the provisions of this Code as to all employees engaged in whole 

or in part in such manufacture. In case any employee shall be engaged partly in such manufacture and partly in the manufacture of 

goods of another character, this Code shall apply to such portion 

of such employee's time as is applied to the manufacture of articles 

subject to this Code. 

9. No provision of this Code shall be so applied as to permit 

monopolies, or monopolistic practices, or to eliminate, oppress, or 

discriminate against small enterprises. 

10. All nw1nbers of the Industry shall post and keep posted in a 

conspicuous place accessible to employees c01nplete copies of this 

Oode. In addition to the foregoing c01nplete copies of all labor 

provisions of this Oode together with any necessary interp1·etations 

8hall be placed in a conspicuous place on each factory floor and in all 

places of business other than the factory whe1·e three or more pe1'sons 

a·re employed. Such posted copies of the labor provisions of this 

Oode and of the said interp1·etations shall be in English and/or in 

any other necessary language or Zanguages. 2 

11. The Handkerchief Industry approves the practice of handling 

disputes between its members, between members and their customers, 

and between members and those from whom_ they purchase, in a fair 

and reasonable manner coupled with a spirit of moderation and 

good will, and every effort should be made by the disputants themselves to arrive at an agreement. In the event that they are unable 

t(> agree, the dispute hould be settled by arbitration as provided by 

the American Arbitration Society. 

l B. Eve1·y e1nploye1' hall provide for the safety and health of em- ployees during the how·s and at the places of their e1nployment. 

Etandm·ds of safety and health shall be submitted by the Oode Authority to the National I ndustrial R ecovery Board within three (3) 

?n,onths after the efl ctive date of this amendm,ent.2 

Approved Code No. 53. 

R egistry No. 237-1-01. 

2 See f<>otnote, p. 1. 
Approved Code No. 53-~mendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HANDKERCHIEF INDUSTRY 

As Approved on October 3, 1934 

ORDER 

APPROVING AMENDMENT TO THE CoDE OF FAIR CoMPETITION FOR THE 

HANDKERCIDEF INDUSTRY 

An application having been 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 an amendment 

to the Code of Fair Competition for the Handkerchief Industry 

and hearings having been duly held thereon and the annexed report 

on said amendment, containing findings with respect thereto, having 

been made and directed to the President: 

NOvV, THEREFORE, on behalf of the President, we, the National Industrial Recovery Board, pursuant to authority vested in 

us by Executive Orders of the President, do hereby incorporate by 

reference, said annexed report and do find that said amendment and 

the Code as constituted after being amended comply in all respects 

with the pertinent provisions and will promote the policies and purposes of said Title of said Act, and do hereby order that said 

amendment be and it is 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. 

NATIONAL INDUSTRIAL REcoVERY BoARD, 

By G. A. LYNOH, Administrative Officer. 

Approval recommended : 

PRENTiss L. CooNLEY, 

Acting Division Administrator. 

WASHINGTON, D. C. 

October 3, 1034. 

NoTE.-This order approves changes in Article VIII of the code. See p. 14. 

(18) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

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 Competition for the Handkerchief Industry, and Hearings were conducted 

on said proposed amendments in Washington on April 18, 1934. 

The amendment to Article VI, Section 4(m) makes each member 

of the Industry liable for his or its equitable contribution to the 

expenses of the maintainence of the Code Authority, and the amendment, to Article VIII, Section 19 provides that, under certain circumstances, an emergency may be declared to exist in the Industry, 

and that, in such event, stated minimum prices for the products of 

the Industry may be prescribed for a limited time. Both amendments are standard in form and content. 

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: 

I find that: 

(a) The amendment 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 cooperative action among trade groups, by inducmg 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 industr~es, 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. 

(c) The Handkerchief Industry Association, Inc. was and is an 

industrial association truly representative of the aforesaid Industry 

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

and consents to this amendment. 

(19) 
20 

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

to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not de igned 

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 

amendment. 

OCTOBER 3, 1934. 

NATIONAL INDUSTRIAL RECOVERY BoARD, 

By G. A. LYNCH, Administrative Officer·. 
Approved Code No. 53-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

HANDKERCHIEF INDUSTRY 

As Approved on October 31, 1934 

ORDER 

APPROVING AMENDMENT OF CoDE OF FAIR CoMPETITION 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 Hanakerchief 

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 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 r€spects with the pertinent provisions 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 there shall be created forthwith a 

Special Commission composed of three members, one of whom shall 

be nominated by the Labor Advisory Board of theN ational 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. baid 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 recommendations, 

upon the approval of the National Industrial Recovery Board, shall 

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

(21) 
22 

Commission and the approval of 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 BoAIID, 

By G. A. LYNCH, Adn~inistrative Officer. 

Approval recommended: 

PRENTiss L. CooNLEY, 

Acting Division Administrato~. 

WASHINGTON, D. c., 

October 31, 1934. 

NoTE.-Tbis order approves changes in articles II, III, IV, V, VI, VII, VIII, IX, and X. 

See pp. 1, 2, 3, 5, 10, 14, 15, and 16. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The W Mte Howe. 

Sm: 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 F air Competition for the Handkerchief Industry, and Hearings were conducted on 

said proposed amendments in Washington on April18, 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. 

Generally 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 provisions, 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 matter : 

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 

cooperative 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 ~rodu ts 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. 

(23) 
24 rrrllrrrrrl1r~i~r11~11ir'flflrr~rllr[rllij~fl1r i1111111111 

3 1262 08486 8164 

(c) The Handkerchief 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 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 amendment. 

For The National Industrial Recovery Board: 

OcTOBER 31, 1934. 

G. A. LYNOH, 

Administrative Officer. 

0