Approved Code No. 226-Amendment No.3 Registry No. 299-50 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

C·ODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY 

EXCEPT GARMENTS 

AS APPROVED ON JUNE 29, 1934 

WE DO OUR PARt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

• 

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Approved Code No. 226-Amendment No. 3 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

As Approved on June 29, 1934 

ORDER 

MoDIFICATION OF CoDE OF FAIR CoMPETITION F OR THE LIGHT SEWING 

INDUSTRY ExcEPT G ARME~Ts 

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 Light Sewing Industry Except 

Garments, 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 Pre ident: 

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

State , I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pur uant to authority vested in me 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 modified comply in all r espects with the pertinent 

provi ions and will promote the policy and purposes of said Title of 

said Act, and do hereby order that said motlification 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. 

HUGH s. JOHNSON' 

Administrator for Industrial Recovery. 

ApproYal recommended: 

R. L. HousToN, 

Division Administrator. 

\VASHINGTON, D.C., 

June ~9, 1934. 

71313°----820-5----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite H OW3e. 

Sm : This is a report on the hearing on an amendment to the Code 

of Fair Competition for the Light Sewing Industry Except Gar- ments, held in Room 109 of the Raleigh Hotel on April 26, 1934. 

The amendment, which is attached, was presented by the Divisional 

Committee. 

In accordance with the customary procedure, every person who 

had filed request for an appearance was freely heard in public, and 

all statutory and regulatory requirements were complied with. 

The amendment consists of several additional unfair trade practices including a prohibition against selling below cost when, and 

if, a standard system of cost accounting or estimating is approved 

by the Administrator. The amendment also provides that learners ~ay be employed for a period of not more than four ( 4) weeks at 

80% of the minimum wage but limits the number of learners to 10% 

of the total number of employees. 

FINDINGS 

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

of all proceedings in this matter : 

I find that: 

(a) The amendment 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 a:mount 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 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 without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof. 

(2) 
3 

(c) The Code empowers the Divisional Committee to pr sent the 

a£or said amendment on behalf of the Division as a whole. 

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

and will not permit monopolies or monopoli tic pra bees. 

(e) The amendment and the Code as am nde 1 are not desi O'nccl 

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

operate to discriminate against them. 

(f) Those engaged in other steps of the econorni pro"e. s haY2 not 

been deprived of the right to be heard prior to approval of said 

amendment. 

For the above rea ons this amendment ha been approve l by me. 

JUNE 29, 1934. 

I-Ium-r S. JoH. so .. -, 

Adn~in ist-t or. 
A~IENDMENT TO CODE OF FAIR COMPETITION FOR 

THE LIGHT SEWING INDUSTRY EXCEPT GARMENTS 

Division No. 5, Fabric Auto Equipment Division, shall be amended 

as follows : 

Tl~e~e shall be added to Article II-Trade Practices-the following 

prOVlSlOnS : 

"(j) To make any allowance or discount for advertising or for 

payment for space in newspapers, magazines, guides, or directories 

on behalf of any retailer andj or wholesaler to be used in promoting 

the sale of merchandise to the consumer in excess of one-half of the 

cost of the advertising; providing, howe-ver, that payment for such 

advertisinrr shall not be made until a copy of the publication containing the advertising tocrether with receipted bill therefor is presented 

to a member of the Division. The supplying of cuts, n1atrices, or 

window cards shall not be included in such prohibition. Nothing 

herein, however, shall prohibit any member of the Division from 

nationally or generally advertising his merchandise. 

"(k) To make a contract for a definite quantity of advertising tire 

covers at a stipulated .price and to deliver a smaller quantity without 

eharging the regular price applying to the quantity delivered. 

"(I) To accept orders for future requirements which do not make 

provi ion for quantities, excepting that an average or underage of 

10% is allowed." 

Section (h) of Article II shall be amended to read as follows: 

"Selling on more liberal terms than 2%, 10 days E.O.M., net 30 

except that dating on seasonable merchandise may be allowed, but 

anticipation shall not be allowed at a rate of more than lj2 of 1% 

per month." 

There shall be added an Article III as follows : 

"'Vhen a standard system of cost accounting and methods of cost 

finding and/ or estimating capable of use by all members of the 

Divi ion is prepared by the Divisional Committee and approved by 

ihe Administrator, full details concerning said system shall be made 

available to all members of the Division. Thereafter, all members 

of the Division shall determine andj or estimate costs in accordance 

with the principles of such methods. 

"Following the approval of such system no member of the Division shall sell or exchange or offer to sell any product of the Division 

below his own cost of making such product, except to meet the competition of any member of the Division whose price for a product of 

equivalent quality i not less than his cost of making the product. 

"The Divisional Committee shall have the power to suspend the 

operation of the provisions of this Article provided five days' notice 

is given the Administrator and the members of the Division, and to 

make provisions for the disposal of discontinued lines, seconds, and 

other sales to be excepted from the application of this Article." 

(4) 
5 

There shall be added an Article IV as follows: 

"Learners may be employed for a period not ex eedinO' four ( 4) 

weeks at a rate of not le s than 80%. of the minimum wages called 

for in the Code, provided that no employer may employ more than 

10% of the total employ cs as 1 arners, and provided further that 

any employer may be entitled to one learner at the above specified 

wage, and provided further that no employer can employ as a learner 

any employee who has been in the Division of the Industry within 

three years previous to the date of such employment." 

Apr roved Code No. 226, Amendment No. 3. 

Registry No. 299--50. 

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UNIVER S ITY OF FLORIDA 

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