Approved Code No. 64-Amendrnent No. 1 Registry No. 228-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

DRESS MANUFACTURING 

INDUSTRY 

AS APPROVED ON APRIL 10, 1934 

WE DO OUR PJ.Rl' 

UNITED ST ATES 

GOY.ERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washintton, D.C. - Price 5 cents 

✓ 
This publication is for sale by the Superiutendent of Documents, Government 

Printing Office, Washington, D.C., and by dhtrict offices of the Bureau 0f Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlama, Ga. : 504 Post Office Building. 

Birmingham, Ala.: 257 F ederal Bu!luing. 

Bostou, Mass. : 1801 Cu stomhouse. . 

Buffalo, N.Y.: Chamber of Commerce Built.ling. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 Nortll Wells Street. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commer 'e Building. 

Detroit, Mich.: 801 First National Ba nk Building. 

H ouston, Tex.: Cl1amber of Commerce Building. 

Indianapolis, Incl. : Chamber of Commerce Building. 

Jacksonville, Fla.: Cba.mber of Commerce Buildi11g. 

Kansas City, l\Io.: 1028 Baltimore A ,enue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisvill e, K}. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, P a .: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Fra ncisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
• 

Approved Code No. 64-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DRESS MANUFACTURING INDUSTRY 

As Approved on April 10, 1934 

ORDER 

AMENDMENT TO THE CODE OF FAIR COMPETITION FOR TlIB DRESS 

MANUFACTURING INDU TRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I 0£ the National Industrial 

Recovery Act, approved June 16, 1933, £or approval of amendments 

to a Code 0£ Fair Competition £or the Dress Manufacturing Indnstry, 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: 

No,v, THEREFORE, on behalf of the President 0£ the United 

States, I, Hugh S. Johnson, Administrator £or. Industrial Recovery, 

pursuant 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 amendments and the Code as constituted after being amended comply in all respects with the pertinent provisions and will promote the policy and purposes 0£ said 

Title 0£ said Act, and do hereby order that except as hereinafter 

provided said amendments be and they are hereby approved, and 

that the previous approval of said Code is hereby modified to 

include an approval 0£ aid Code in its entirety as amended; it is 

FURTHER ORDERED that except as herein expressly specified, 

the approval of said amendments shall constitute a supplement to 

and not a repeal of exi ting provi ions in the Code ; 

IT IS FURTHER ORDERED that said amendments shall become effective as part 0£ the Code ten (10) days after the date 

hereof. 

HUGHS. JOHNSON, 

Ad1ni11istrator fer Industrial Recovery. 

Approval recommended: 

SoL. A. RosENBLA TT 

Division Adm,inistrator. 

APRIL 10, 1934. 

62119°-482-54-34 (1) 
• 

REPORT TO THE PRESIDENT 

The PRESIDEN T, 

The vVhite House. 

Sm: The Public H earing on an amendment to the Code of Fair 

Competition for the Dress Industry as proposed by the Code Authority for t his Industry was conducted on l\1onday, March 26, 1934, 

in Room 2062, Department of Commerce Building, vVashington, D.C. 

E ach person who requested an appearance was fairly heard in 

public in accordance with the usual requirements. Present were authorized representatiYes of the Code Authority for this Industry, 

r epresentatiYes of the National Retail Dry Goods Association, and 

representative members of the Industry. 

The propo als of modifications to amend Article IX of the Dress 

Code, approved October 31, 1933, W€re the subject of conferences between the Code Authority and representatives of the Retailers Protective Association of the N.R.D.G.A. and the Chairman of the Merchandise l\Ianagers' Group of this Association, at which agreement 

was r€ached respecting the substance of the several modifications 

proposed. 

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

of all the 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 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 l?roducts through 

increasing purchasing power, by reducing and relieving unemployment, by iJ.nproving standards of labor, and by otherwise rehabilitating industry. 

(b) The Code as amended complies in all respects with the pertinent provi ions of said Title of said Act, including without limitation Sub ection (a) of Section 3, Sub ection (a) of Section 7, and 

Sub ection (b) of Section 10 thereof. 

( c) The Code empowers the Code Authority to present the aforesaid amendment on behalf of the industry as a whole. .... (d) The amendment and the Code as amended are not deigned to 

and will not permit monopolies or monopoli tic practices. 

(2) 
3 

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

and will not eliminate or oppre s mall enterprises and will not operate to discriminate again t 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 ·e r a on ·, the-::e tra le practice provisions have been 

approved. 

Respe tfully, 

APnrL 10, 193-!. 

IIUGH s. JOHNSON, 

Administrator. 
Al\fEND1'1ENT TO CODE OF FAIR COlVIPETITION FOR 

THE DRESS MANUFACTURING INDUSTRY 

I. The following is substituted for the first paragraph of Article 

IX of the Code: 

"For all purposes of this Code the provisions hereinafter set forth 

shall constitute unfair trade practices. Any member of the Industry 

who shall directly, or indirectly through any officer, employee, agent, 

or representative, knowingly use, employ, or permit to be employed 

or be engaged in any of such unfair trade practices, shall be guilty 

of violation of the Code and be subject to the penalties provided in 

the Act." 

II. The following is substituted for Section 1 of Article IX and 

is designated as Section 1: 

" 1. No member of the Industry shall accept returned merchandise 

for credit under any circumstances except in accordance with the 

following: 

"(a) 1\!Iembers of the industry may accept merchandise for credit 

which has been shipped by a customer within five working days from 

the date of receipt by the customer in his store, only for the following reasons: errors in shipment, delay in delivery, defective material 

or l,orkmanship or any breach of contract. Members of the industry shall not accept merchandise for credit unless accompanied by a 

letter or regular return form mailed by the customer to the m,anufacturer and received by the manufacturer prior to the arrival of 

the merchandise stating the contents of the package, reason for the 

return and the date on which the merchandise was received. Any 

dispute shall be subject to arbitration in accordance with procedure 

agreed upon by the Dress Code Authority and the National Retail 

Code Authority. 

"(b) Members of the Industry may accept merchandise for credit 

which has been shipped by the customer after five working days 

from the date of receipt 'by the customer in his store, only for the 

following reasons: defective material or workmanship or •breach of 

contract which cannot be detected by a reasonable inspection within 

the stated fiye working days. 1'1embers of the Industry shall not 

accept merchandise for credit shipped after the stated five working 

days unless accompanied by a letter or regular return form in duplicate, mailed by the customer, one copy to the manufacturer and one 

copy to the Dress Code Authority at 1440 Broadway, New York, 

New York, or such other place as shall be designated by the Code 

Authority, and received by the manufacturer prior to the arrival 

of the merchandise, stating the contents of the package, the reason 

for the return and the date the merchandise was received. 

" ( c) 1'1erchandise returned after the stated five days period in 

areas designated by the Code Authority shall be held, intact or unopened by the manufacturer, subject to examination by an impartial 

r epre entative of the Dress Code Authority who shall direct the 

(4) 
5 

acceptance by the manufacturer or the return of the merchandise 

to the customer. Any appeal from the decision of the impartial 

representative shall be subject to arbitration in accordance with 

procedure agreed upon by the Code Authority of the Dress Industry 

and the National Retail Code Authorjty." 

III. The follo\Ting is substituted for Section 2 of Article IX of 

the Code and is designated as Section 2: 

"2. The articles of the Fair Trade Practices now or hereafter contained in this Code shall constitute uniform conditions of sale of 

the Industry, and it ~hall be an unfair trade practice for any one 

engaged in the Industry to sell in violation of any of such trade 

practice regulations." 

IV. The following is substituted for Section 4 of the Code and 

designated as Section 4: 

" 4. It shall be unfair tr.ade practice to ell goods on open order 

subject to consignment or by a11y other method which has the effect 

of selling on consignment or memorandum or guaranteeing retail 

turnover." 

V. Section 5 of Article IX continues to be designated as Section 

5, but it is modified to r ead as follows : 

"5. It shall be unfair trade practice to make, accept or demand 

allowances, or refunds, rebates, donations, gifts, credits or unearned 

discounts, (whether in the form of money or otherwise) and/or 

special privileges or services not openly extended to all on like terms 

and conditions." 

VI. The following pro vi "ion is inserted as Section 8 of Article IX 

of the Code: 

"8. No member oi the trade shall falsely advertise, (whether by 

printing, radio, display, or by any other form) or falsely brand, 

mark or pack any goods, in any manner which is misleading. Nor 

shall any member of the Industry in any way misrepresent any goods 

(including, but without limitation, their use, trademark, quality, 

quantity, origin size, finish, material or serviceability) or credit 

terms, Yalues, policies, services or the nature or form of the business 

conducted." 

VII. The following provision is inserted as Section 9 of Article 

IX of the Code: 

"9. It shall be unfair trade practice to approach or entice the 

employees of designing and selling departments of competitors with 

the intent of hampering, injuring, and/or embarrassing such competitors in the conduct of their business; to secure confidential information concerning the business of a competitor by a false or 

misleading statement or representation, by a false impersonation of 

one in authority, bribery or by any other unfair method." 

VIII. The following provision is inserted as Section 10 of 

Article IX of the Code : 

' 10. It shall be unfair trade practice to make loans or give 

gratuities, or special commissions or rewards to employees of jobbers, 

retailers, resident or commission buyers." 

IX. The following provision is inserted as Section 11 0£ Article 

IX of the Code : 

"11. It shall be unfair trade practice for tho e member of the 

Dre Industry, normally selling to the trade for resale, to sell 

merchandise to anyone except to recognized wholesale or retail dis-
6 

ZZ98 Z8t80 zgz~ t 

I I \Ill \Ill 111111111 Ill 11111 II 111111 II 1111111111 Ill Ill 111111 II I II 

'v'Ol~Ol:l :J O ,UIS~3 i\1Nn 

tributors. This shall not prevent, however, bona fide sales by members to their own employees of merchandise which is for the personal 

use of such employees, or to retail buyers at not less than the regular 

wholesale prices, provided the buyers are employed in the department 

in which the merchandise of the member of the industry is usually 

sold. ' · 

X. The following provision is inserted as Section 12 of Article IX 

of the Code: 

" 12. All members of the Industry shall sell merchandise on the 

shipping terms of f.o.b. city of manufacture which includes frne 

deliver to any shipping or forwarding point or store within the city 

in ,,hich the manufacturer is located. In cases of disputed claims 

on r eturned merchandise, transportation charges shall be paid by 

whichever disputant loses the decision." 

XI. The following provision is inserted as Section 13 of Article IX 

of the Code: 

"13. No member of the Industry shall sell merchandise except 

under contract which shall provide: 

(a) that no purchase order for merchandise shall be subject to 

cancellation BEFORE the specified and agreed upon shipping date 

written on said order; 

(b) that no purchase order shall be subject to cancellation AFTER 

the agreed upon shipping date unless cancellation is in writing, and it 

permits the manufacturer three additional working days from the 

date of receipt of such cancellation, to complete and ship any and 

all merchandise in work at that time; 

( c) that if no notice of cancellation is received by the manufac- turer from the customer, all merchandise remaining on order shall 

be cancelled by the manufacturer two (2) weeks after the expiration 

date of order. 

XII. The following provision is inserted as Section 14 of Article 

IX of the Code: . 

" 14. No member of the Industry, shall accept and execute any 

order for merchandise which is placed by resident buyers unless 

such order shall be a bona fide order for the sale and purchase of 

said merchandise. No member of the Industry shall accept orders 

from a resident buyer unless said resident buyer submits written 

authorization that he is the agent of the customer and able to bind 

his principal. Printed announcements in a trade paper s.hall con- stitute public notice to this Industry of the change in the resident 

buying office of a retailer." 

XIII. The following provision is inserted as Section 15 of Article 

IX of the Code : 

" 15. It shall be unfair trade practice for any member of the Industry to give advertising allowance to any customer or customer's 

agent." 

XIV. The following provision is inserted as Section 16 of Article 

IX of the Code : 

" 16. It shall be unfair trade practice for members to accept 

charges for telegrams or long distance telephone messages from customers with r eference to the purchase or sale of goods." 

Approved Code No. 64-Amendment No. 1. Registry No. 228-01. 

0