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

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

KNITTED OUTERWEAR 

INDUSTRY 

AS APPROVED ON JUNE 2, 1934 

WE DO OUR PART 

I I 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASIDNGTON: 1934 

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Approved Code No. 164--Arnendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR TIIE 

KNITTED OUTERWEAR INDUSTRY 

As Approved on June 2, 1934 

ORDER 

MoDIFICATION OF CoDE OF FAIR CoMPETITION FOR THE KNITrED 

OuTERWEAR INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of a modification of a Code of Fair Competition for the KnittBd Outerwear 

Industry, and hearings having been duly held thereon and the 

annexed report on said modification, containing findings with respect 

thereto; having been made and directed to the President: 

NOW THEREFORE, on behalf of the President of the United 

States, i, Hugh S. Johnson, Administrator for Industrial Recov-ery, 

pursuant to authority vested in n1e by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

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

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

constituted after being n1odified comply in all respects with the 

pertinent provisions and will promote the policy and purJ?oses of 

said Title of said Act, and do hereby order that said modification 

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 modified. 

HuaH S. JoHNSoN, 

Aflministrator for Industrial Recovery. 

Approval recommended: 

H. 0. l(rNG, 

Division Ad1ninistrator. 

vv asHrNaToN, D.c. 

June 2, 193. ~ 

64642°----657-9----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Hearing covering the Amendment to 

the Code of Fair Competition :for the Knitted Outerwear Industry, 

held in Room 2062, Department of Commerce Building, Washington, 

D.C., SaturdaybMay 12, 1934. The Amendment, which is attached, 

was presented y duly qualified and authorized representatives o£ 

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 is one amendment giving the Code Authority power, in 

case of emer,gency, to establish a "lowest reasonable cost" below 

which it would be an un:f:tir trade practice for any member of the 

Indus try to sell his, products. 

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: 

I find that: 

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

well designated to promote the p{)licies and purposes of Title I of 

the National Industrial Rec{)very Act including the ~oval of obstructions to the free flow of interstate and foreign commerce which 

tend to diminish the amount thereof, and will provide for th~ 

general welfare by promoting the organizatjon of industry for the 

purpose of co{)perative action among trade groups, by inducing and 

maintaining united action of labor and management und'er adequate governmental sanction and superv·ision, by eliminating unfair 

competitive practices, by promoting the fHllest possible utilization ol 

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 mcreasing purchasing power, by reducing and relieving 

unemployment, y 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 limita-

(2) 
tion Subsedtion (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 amendment and the Code as amended are not designed 

1 to and will not permit monopolies or monopolistic practices. 

(e) The a1nendment 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 

amenillnent. 

For these reasons this amendment has been approved. 

Respectfully, 

JUNE 2, 1934. 

HUGH s. JOHNSON' 

AdmiJnistrai01'. 
Al1ENDMENT TO CODE OF FAIR COMPETITION FOR THE 

KNITTED OUTERWEAR INDUSTRY 

Amend ARTICLE IX-ADMINISTRATION, by the addition of a new 

section to read as follows : 

(h) (1) When the Code Authority determines that an emergency 

exists in any division of the Industry, and that the cause thereof is 

destructive cutting of prices andjor the cutting of the rates paid to 

contractors for their work and services in manufacturing products 

of such division, and that such cutting of prices and/or rates renders 

ineffective or seriously endangers the maintenance of the provisions 

of the Code, the Code Authority may cause to be determined the lowest reasonable cost of the product involved and/or of the work and 

services rendered by the contractors involved as the case may be, such 

determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove 

or modify the determination. 

(2) Therea-fter, during the period of the emergency. 

(A) No member of the Industry shall sell or offer to sell any such 

products of such division of the Industry for which the lowest reasonable cost has been determined at such prices and upon such terms 

and conditions of sale that the buyer of such product will pay less 

therefor than the lowest reasonable cost of such products so determined, and · 

(B) No member of the Industry shall offer to give or to take, or, 

give or take any work on the contract-method of production for the 

manufacture of any of the products of such division of the Industry, 

for which the lowest reasonable cost has been determined, at such 

rates or upon such terms andjor conditions that the contract-employer will pay less for such work and services so determined. 

(3) When it appears that conditions are changed, the Code Authority, upon its own initiative or upon the request of any interested 

party, shall cause the determination to be reviewed. 

(4) The term "Contract-System of Production" as used herein 

means the system of having any of the products of the Industry 

manufactured in whols or in part by contractors. 

( 5) The term " Contract-Employer " as used herein shall include eve~y person, firm or corporation who uses or employs contractors. 

Approved Code No. 164---Amendment No. 1. 

Registry No. 243-1-02. 

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