Approved Code No. 118-Amendment No. 7 Registry No. 217-1-06 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

COTTON GARMENT INDUSTRY 

AS APPROVED ON AUGUST 21, 1934 

WE 00 OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 118--Amendment No. 7 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

COTTON GARMENT INDUSTRY 

As Approved on August 21, 1934 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

APPROVING AMENDMENTS TO CODE OF FAIR COMPETITION FOR THE 

COTTON GARMENT INDUSTRY 

Hearings having been duly held in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved -June 16, 1933, in connection with amendments of the Code of Fair 

Competition for the Cotton Garment Industry, and the Administrator 

having rendered his report thereon together with his recommendations and findings with respect thereto, and it appearing that the said 

amendments will promote the policy and purposes of Title I of the 

National Industrial Recovery Act: 

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 the Code of Fair Competition for the Cotton Garment Industry, 

and otherwise, do adopt and approve the report, recommendations, 

and findings of the Administrator and do hereby order that the said 

amendments be and they are hereby approved, and that my previous 

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

approval of said Code in its entirety as amended such approval to 

take effect fourteen (14) days from the date hereof unless good cause 

to the contrary is shown to the Administrator prior to that time and 

I do issue a subsequent order to that effect. 

Approval recommended: 

HuaH S. JoHNSON, 

Administrator. 

THE WHITE I-IousE, 

August ~1, 1934. 

FRANKLIN D. ROOSEVELT. 

81810°-1044-99-84 (1) 
LETTER OF TRANSMITTAL 

The PRESIDENT, 

The White House. 

Srn: On June 18, 1934, a public hearing was called to consider 

amendments to the Code of Fair Competition for the D-ress Manufacturing Industry, the Code of Fair Competition for the Men's 

Clothing Industry, and the Code of Fair Competition for the Cotton Garment Industry. These amendments to the Cotton Garment 

Code are part of the results of this hearing. 

The hearing showed no material reemployment by this Industry 

subsequent to the effective date of the Code, which contained a provision arbitrarily fixing a work week of forty hours. The forty hour 

work week of the Cotton Garment Industry Code has resulted in 

unfair competition between members of the apparel in,dustry under 

it and members under other apparel codes which have provisions for 

thirty-five and thirty-six hour work weeks. 

To bring about more reemployment and correct the unfair competition existing because of the forty hour work week of the Cotton 

Garment Code, and effectuate the purposes of the Act, it is necessary · to make a reduction to thirty-six hours, and, at the same time, make 

a proportionate increase in the pay of employees so as to maintain 

the same weekly wage rate as is provided in the Code as approved 

November 17, 1933. 

The Industry has given its assent to all of those amendments wjth 

the exception of the ones relating to hours, ( Section A of Article 

III, reducing the maximum hours to 36), and wages, (Sections A 

and B of Article IV, making the proportionate increase in the basic 

wage). By refusing to assent to the hour and wage provisions, the 

Industry has made it necessary for the amendments to be submitted 

to you for approval. 

These amendments are in five parts as follows: 

Part 1 eliminates a provision of Article II, Section (a) which 

gives the Administrator the right to hold such hearings as he may 

deem necessary in order to determine whether the definition of products of the Industry may be modified or eliminated. Thi deleted 

provision has served its purpose and is therefore being eliminated. 

Part 2 amends Article III of the Code. Three sections (a) , (b) 

and ( d) having served their purpose in the Code are deleted and a 

new section (a) is added so as to provide for a 36 hour work week 

for manufacturing employees instead of a 40 hour work week in the 

Code as heretofore approved. 

Part 3 amends Article IV of the Code. Several sections having served their purposes in the Code are deleted and four new 

sections are added. New section (a) provides for a minimum wage 

of Twelve ($12.00) Dollars per week for the Southern Area and a 

(2) 
3 

minimum wage of Thirteen ($13.00) Dollars per week for the 

Northern Area. It further provides that employees shall be paid 

at least the same wage per week of 36 hours as was paid for the 

week of 40 hours, and further, that piece rates shall be increased by 

not less than ten (10% ) p 0 rcent above the piece work rate prevailing 

as of ~1ay 1, 1934. New section (b) provides that in the Sheep-Lined and Leather 

Garment Industry manufacturing employees are to be paid at a 

minimum wage of Fourte-en ($14.00) Dollars per week, and further 

provides a specified minima to be paid skilled workers, and that 

pieoo rates shall be increased by not less than ten (10% ) percent over 

and above the piece work rates prevailing as of May 1, 1934. 

New section ( c) provides a minimum wage to be paid learners 

employed in the Industry. 

New section ( e) provides that handicapped employees may be 

employed on light work at a wage below the minimum established 

by the Code. 

Part 4 contains new provisions to be added to the Code which are 

pursuant to recent policy rulings of the Administration relative to 

destructive price cutting and cost finding. 

Part 5 is a new provision of the Code providing for an Industrial 

Committee to study all applications for exemption from provisions 

of the Code, by individual manufacturers, and to grant such exemptions subject to the disapproval by the Administrator. 

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 proceedings in this matter: 

" 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 

purch~sing 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 without limitation Subsection (a) of Section 3, Subsection (b) of Section 10 

thereof. 

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

to and will not permit monopolies or monopolistic practices. 

" ( d) 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. 
4 

" ( e) 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 are recommended for your 

approval. 

Respectfully, 

I-f ucH S. JoH:NSoN, 

A dm,inistrator. A UGUST 21, 1934. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE COTTON GARMENT INDUSTRY 

I 

.Article I I is hereby amended to delete therefrom the second paragraph of Section A, which begins with the words "The Products" 

and ends with the words "in this Code". . 

II 

.Article Ill is hereby amended by deleting therefrom Sections A, 

B and D, by substituting therefor the following Section A and by 

redesignating Sections C and E as Sections B and C respectively. 

"A. On and after October 1, 1934, no manufacturing employee 

shall be permitted to work in excess of thirty-six (36) hours 1n any 

one week nor in excess of eight (8) hours in any one day, except as 

herein otherwise provided. The Industrial Committee, to the extent 

provided in Article XV hereof, may make such determinations of 

applications for exceptions and/or exemptions from the provisions 

of this Section as it may deem proper and necessary, subJect to the 

disapproval of the Administrator as provided therein. No n-0nmanufacturing employee shall be permitted to work in excess of 

forty ( 40) hours in any one week." 

III 

.Article IV is hereby amended by deleting therefrom Section D, 

by redesignating Sections E, G, H, I, J, K, L and M as Sections 

D, F, G, H, I, J, K and L, respectively; and by redesignating Section F as Section E and amending Sections A, B, C and E as follows: 

"A. On and after October 1, 1934, except as hereinafter provided, 

no employee shall be paid at less than the rate of Twelve Dollars 

($12.00) per thirty-six (36) hour week in the Southern area, nor 

at less than the rate of Thirteen Dollars ($13.00) per thirt;v-six (36) 

hour. week in the Northern area. Week workers and/or time workers receiving above the minimum wage prior to this amendment 

shall be paid at not less than the same wage per thirty-six (36) 

hour week that they were paid per forty ( 40) hour week. Piece 

rates shall be increased by not less than 10% over and above the 

piece rates prevailing as of ]Way 1, 1934, but in no event shall piece 

workers receive less than the minimum weekly wage herein provided." 

" B. On and after October 1, 1934, in the Sheep-Lined and Leather 

Garment Industry, no manufacturin~ employee shall be paid at less 

than the rate of Fourteen Dollars (:i,14.00) per week. No operator 

shall be paid at less than the rate of 45¢ per hour; and no short 

(5) 
6 

knife cutter shall be paid at less than the rate 0£ 75¢ per hour. 

Manufacturing employees shall receive not less for thirty-six (36) 

hours than they received for forty ( 40) hours. Piece rates shall 

be increased by not less than 10% over and above the piece rates 

prevailing 1'1ay 1, 1934." 

"C. The number of learners employed at any time in the Cotton 

Garment Industry or in a manufacturer's plant or factory shall not 

exceed ten (10%) percent of the total number of manufacturing 

employees in said plant. A learner shall be classified as a person 

who has worked in this industry for a period of not more than twelve 

(12) weeks in whatsoever capacity. Learners shall be paid not less 

than the following : 

First four weeks-----~--------------------------- 50% of the minimum wage Second four weeks ____________________________ :..._ 66% % of the minimum wage 

Third four weeks _______________________________ 80% of the minimum wage." 

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

physical or mental handicap, or other infirmity, may be employed 

on light work at a wage below the minimum established by this Code, 

if the employer obtains fro;rn the State Authority, designated by 

the United States Department of Labor, a certificate authorizing his 

employment at such wages and for such hours as shall be stated in 

the certificate. Such authority shall be guided by the instructions 

of the United States Department of Labor in issuing certificatBs to 

such persons. Each employer shall file monthly with the Code Authority a list of all such persons employed by him, showing the 

wages paid to and the maximum hours of work for such employee." 

IV 

Article XI is hereby amended to include Section D which shall 

read as follows : 

"D. The Standards of Fair Competition £or the Industry with 

reference to pricing practices are declared to be as follows : " 

"1. (a) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any ;member of the Industry or of 

any other industry or the customers of either may at any time complain to the Code Authority that any quoted price constitutes unfair 

competition as destructive price cutting, imperiling small enterprise 

or tending toward monopoly or the impairment of code wages and 

working conditions. 

"The Code Authority shall within five (5) days afford an opportunity to the member quoting the price to answer such complaint and 

shall within fourteen (14) days make a ruling or adjustment thereon. 

If such ruling is not concurred in by either party to the complaint, 

all papers shall be referred to the Research and Planning Division 

of NRA which shall render a report and recommendation thereon to 

the Administrator. 

"(b) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. 
7 

" ( c) When an emergency exists as to any given product, sale 

below the stated minimum price of such product, in violation of 

Section 2 hereof is forbidden." 

"2. Emergency Provisions..-(a) If the Administrator, after investigation, shall at any time find both ( 1) that an emergency has 

arisen within the Industry adversely affecting small enterprises or 

wages or labor conditions, or tending toward monopoly or other 

acute conditions which tend to defeat the purposes of the Act; and 

(2) that the determination of a stated minimum price for a specified 

product within the Industry for a limited period is necessary to mitigate the conditions constituting such emergency and to effectuate the 

purposes of the Act, the Code Authority may cause an impartial 

agency to investigate costs and to recommend to the Administrator 

a determination of a stated minimu1n price of the product affected 

by the emergency and thereupon the Administrator may proceed to 

determine such stated minimum price. 

(b) 1Vhen the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of 

such emergency and to effectuate the purposes of the National Industrial Recovery Act, he shall publish such price. Thereafter, 

during such stated period, no member of the Industry shall sell such 

specified products at a net realized price below said stated minimum 

price and any such sale shall be deemed destructive price cutting. 

From time to time, the Code Authority may recommend review or 

reconsideration or the Administrator may cause any determination 

hereunder to be reviewed or reconsidered and appropriate action 

taken." 

"3. Cost Finding.-The Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all 

members of the Industry, and shall submit such methods to the 

Administrator for review. If approved by the Administrator, full 

information concerning such methods shall be made available to all 

members of the Industry. Thereafter, each member of the Industry shall utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit the Code Authority, 

any agent thereof, or any member of the Industry to suggest uniform 

additions, percentages of differentials or other uniform items of cost 

which are designed to bring about arbitrary uniformity of costs or 

prices." 

V. 

Article XV shall be amended as follows : 

The section presently known as Section B shall be known as Section C and a new section shall be inserted in said Article to be known 

as Section B as follows : . 

"B. A Committee is hereby established to be known as the Industrial Committee, to be appointed by the Administrator on the nomination of the following: Three members by the Code Authority to 

represent the Industry and three members by the Labor Advisory 

Board of which one shall be without Union affiliation. The six so 

selected shall select a Chairman to be approved by the Administrator. The powers and duties of this committee shall be as follows: 
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V 

Approved Code #118 Registry No. 217-1-06 

ERRATA SHEET 

CODE OF FAIR COMPETITION 

FOR THE 

COTTON GARMENT INDUSTRY AMENDMENT NO. 6 

As Approved on August 21, 1934 

On page 4 of Amendment #6, paragraph 1, which reads ".Article 

IX is amended by ad din~ the foil owing to be known as Section N ", 

shall be changed to read 'Article IX is amended by adding the following to be known as Section M." 

85767°-1181-45---34 (1) 

D, I , GOVERNMENT PRINTING OFPIC1! , 1914