Approved Code No. 23-Amendment No. 2 R.tgistry No. 275-1-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE' OF· FAIR COMPETITION 

FOR THE 

UNDERWEAR AND 

ALLIED PRODUCTS MANUFACTURING 

INDUSTRY 

AS APPROVE;D ON MAY 10, 1934 

'WI DO OUR;PART 

UNITED STA'.l'ES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 193, 

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Approved Code No. 23-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

!<'OR THE 

UNDERWEAR AND ALLIED PRODUCTS ,r I , • I 

I ' MANUFACTURING INDUSTRY 

As Approved on May 10, 1934 

ORDER 

MomFICATION OF CoDE OF FAIR COMPETITION FOR THE UNDERWEAR AND 

ALLIED PRODUCTS :MANUFACTURING INDU STRY 

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 Underwear and Allied 

Products Manufacturing 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 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 said modification and the Code as 

constituted after being modified comply ih all respects with the 

pertinent provisions and will promote the policy and purposes of 

said Title of said Act, and do hereby order that said m.odification 

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; this order to become effective ten (10) days 

after the date hereof unless cause to the contrary shall before that 

time be shown to me and I by my further order otherwise determine. 

HuGH S. JOHNSON, 

Adniinistrator for Industrial Recovery. 

Approval recommended : 

H. 0. KING, 

Division Administrator. 

WASHINGTON, D.C., 

May 10, 1934. 

67970°-544-53-34 (l) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn : This is a report on the Hearing covering the Amendments 

to the Code of Fair Competition for the Underwear and AHied 

Products Manufacturing Industry, held in Room 128 Willard Hotel, 

vVashington, D.C., March 22, 1934. The Amendments, which are 

attached, were presented by duly g_ualified and authorized representatives of the Industry, complying with statutory requirements 

and being the same Agency that originally submitted 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 are six amendments as follows : 

1. An Amendment changing the name of the Administrative 

Agency from " Industry Committee" to "Code Authority." 

2. An amendment changing the name of the Executive Officer 

of the Underwear Institute from " Secretary " to " Managing 

Director." 

3. An amendment whereby various groups in the Industry will 

be given the privilege of recommending modification of the machinehours limitation covering · sewing machines as respects their own 

group. 

4. An amendment whereby various groups in the Industry will 

be given the privilege of recommending modification of the macl;ij.nehours limitation covering knitting machines as respects their '·own 

group. 

5. An amendment changing the membership of the Code Authority from six members representing the Industry to nine members 

repret,enting the Industry, and specifying the various groups of the 

Industry which the nine members will represent. 

6. An amendment whereby certain administrative clauses which 

are being placed in codes now being approved are added to the Code. 

FINDINGS 

The Deputy Administrator in his final report to me on said amendments to p,id 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 designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act including the removal of obstruc-

(2) 
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tions to the free flow of interstate and foreign commer e 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 supervi ion, by eliminating unfair competitive practices, by promoting the fullest possible utilization of 

the present productive capacity of industrie , by avoiding undue 

restriction of production ( except as may be temporarily required), 

by increasing the consumption of industrial and agricultural product$ through increasing purchasing power, by reducing and relieving 

unemployment, by 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 limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof. 

( c) The Underwear Institute 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 or consents to these amendments. 

( 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 

amendments. 

For these reasons these amendments have been approved. 

Respectfully. 

MAY 10, 1934. 

HUGH s. JOHNSON' 

Administrator. 
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AMENDMENT TO CODE OF FAIR COMPETITION FOR THE 

UNDERWEAR AND ALLIED PRODUCTS MANUF ACTURING INDUSTRY . I 

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p ART I-DEFINITIONS 

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Section 11 is amended to read as follows: · "11. The term 'Code Authority' as used herein,,shall . mean the 

administrative agency designated in Part IV to cooperate with the 

Administrator in the administration of this Code." 

Section 13 is amended to read as follows: , 

" 13. The_ term ' 1\1anaging Director ' as used herein shall mean the 

Managing Director of the Institute .. " , 

p ~RT II-LABOR 

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. Section 3, Subsection ( d) is amended as foll0iws: .,, . . Eliminate the worcts " Industry Committee ?' an.d substitute therefor the words "Code Authority." 

Sectio~ 4, Subs_ection ( b) , is amended as follows: -. Eliminate the words "Industry C9rnmittee '? in the last sentence 

and substitute therefor the words "Code Authority." 

PART III-MACHINE HOURS 

Sections 1 and '13 are ameride·~ . tQ -~·e.ad as ioilo~s: ,, . . ::'. 

"1. (a~ No sewing _ m_achini:.shall· he operated for mo~e ,than.i one 

( 1) shift of forty ( 40) · hours per week, provided that ea9h of <the 

f,ollowing_ major groups of tl\.e Indust;ry, namely, ,-. } 

, , :' Group 10-eng:aged in making :gaJ'.'.m~nts from knit~ed co~ton 

and/ or ·wool fabric or from mixtures thereof ,where the pref).omi:μating fibre i.n ~uch mixture is cotton andjo.r wool, t ,•' 

, " Group 11-engaged in m(l,)r.ing garments f;rom woven cotton 

fabric, 'i , ; , n . 

'' Group 12-engaged in putking garmel).ts . from knitted silk _and 

rayon fabric, .:,.'! , . 

"may recommend to the Code Authority modification of the machinehours limitation for its particular group," which recommendation 

shall designate an approximate date when such new machine-ho.:urs 

regulation shall go into effect for the entire group. Such r~coniU1~ndation must receive the affirmative vote of a majority of the ·machines 

in any r such group and must be supported by the followi':(ig information • 'I " • .~ 1 

"(A) A ;epo~t showing the number of manufacturers in such 

gtoup, together with the number of machines operated by each manufacturer so as to give a total number of manufacturing' ·concerns 

and a total of operating machines in such gr~up. · '' ' .... (4) 
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"(B) Supporting statistical data showing the need for the recommended modification. 

"(C) A certified report of the vote of the group showing the number of concerns as well as the number of machines voted in f avor of 

the recommendation. 

"'(b) It shall be the duty of the Code Authority to transmit the 

recommendation of the group, together with its own recommendations, not later than thirty (30) days after receipt thereof from 

said group, to the National Recovery Administration for approval 

or disapproval. 

"2. (a) No knitting machine shall be operated for more than two 

(2) shifts of forty ( 40) hours each per week, provided that each of 

the following major groups of the Industry, namely, 

"Group !-manufacturers of knitted cotton and/ or wool fabric 

or of mixtures thereof where the predominating fibre in such mixtures is cotton and/ or wool. 

" Group 2--manufacturers of circular knit silk and rayon fabric, 

"Group 3-manufacturers of warp knit silk, rayon and cotton 

fabric, 

"Group 4-manufacturers of miscellaneous knit fabrics, 

"may recommend to the Code Authority modification of the machinehours limitation for its particular group, which recommendation 

shall designate an approximate date when such new machine-hours 

regulation shall go into effect for the entire group. Such recommendation must receive the affirmative vote of a majority of the 

machines in any such group and must be supported by the following 

information : 

"(A) A report showing the number of manufacturers in such 

group, together with the number of machines operated by each manufacturer so as to give a total number of manufacturing concerns and 

a total of operating machines in such group. 

"(B) Supporting statistical data showing the need for the recommended modification. 

" ( C) A certified report on the vote of the group showing the 

n-amber of concerns as well as the number of machines voted in favor 

of the recommendation. 

"(b) It shall be the duty of the Code Authority to transmit the 

recommendation of the group, together with its own recommendations, not later than thirty (30) days after receipt thereof from said 

group, to the National Recovery Administration for approval or 

disapproval." 

p .ART IV-ADMINISTRATION 

Section 1, first p(J;'f'agraph, is amended to read as follows: 

"1. (a) To effectuate further the policies of the Act, a Code Authority is hereby set up to cooperate with the Administrator as a 

planning and fair practice agency for the Underwear and Allied 

Products Manufacturing Industry. The Code Authority shall consist of nine (9) members representing the Industry, eight (8) to be 

duly elected by the Institute and one (1) to be elected by the members of the Industry who are not members of the Institute, provided 

that the method of election shall be subject to the approval of the 
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Administrator. The eight (8) members of the Code Authority to ' 

be elected by the Institute shall be elected from the following groups: 

"Two members from Division I, which includes Fabric Manufacturers in Groups 1, 2, 3 and 4, as named in Part III, Section 2, subsection (a) of this Code; provided that one of said members shall 

be elected from Group 2. 

"Three members from Division II, which includes concerns engaged in making garments from various fabrics, provided that there 

shall be one member from Group 10, one from Group 11, and one 

from Group 12, as named in Part III, Section 1, Subsection (a) of 

this Code. 

" One member shall be the Managing Dir~ctor of the Institute, 

" One member shall be the President of the Institute. 

" One member shall be the immediate past president of the 

Institute. 

"(b) In additi,on to membership as above provided, there may be 

not more than three (3) members, to serve without expense to the 

Industry and without vote, to be appointed by the Administrator, 

to serve for such term as he shall specify. 

" ( c) The Code Authority may from time to time present to the 

Administrator recommendations based on conditions in the Industry 

as they may develop from time to time which will tend to effectuate 

the operation of the provisions of this Code and the policy of the 

National Industrial Recovery Act. Such recommendations, when 

approved by the Administrator, shall have the same force and effect 

as any other provisions of this Code. 

"(d) Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shall (1) impose no inequitable restrictions on membership, and (2) 

submit to the Administrator true copies of its articles of association, 

by-laws, 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. 

" ( e) In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with the 

provisions of the Act, the Administrator m.ay prescribe 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. 

"(f) Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpose. Nor shall any 

member of the Code Authority be liable in any manner to anyone for 

any act of any other member, officer, agent or employee of the Code 

Authority. Nor shall any member of the Code Authority, exercising 

reasonable diligence in the conduct of his duties hereunder, be liable 

to anyone for any action or omission to act under this Code, except 

for his own willful misfeasance or non-feasance. 

"(g) If the Administrator shall at any time determine that any 

action of the Code Authority or any agency thereof may be unfair or 

unjust or contrary to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity fqr 
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investigation of the me-rits of such action and further consideration ' 

by such Code Authority or agency pending final action which shall 

not be effective unless the Administrator approves or unless he shall 

fail to disapprove after thirty (30) days notice to him of intention 

to proceed with such action in its original or modified form. 

"(h) The reasonable expenses of administration of this Code shall 

be borne by all the members of the Industry and non payment of an 

equitable share of the costs of code administration shall be considered 

a violation of this code. The Code Authority, upon approval by the 

Administrator of an itemized budget of the estimated expenses and 

of an equitable basis upon which the funds for such expenses shall be 

contributed, shall have the power to secure payment of such expenses· 

from the members of the Industry, and to that end, if necessary, to 

institute legal proceedings therefor in its own name." 

S ection 1, Subsection (a) is amended to read as follows: 

"(i) The Code Authority shall cooperate with the Administrator 

in making investigations as to the functioning and observance of any 

provisions of this Code, at its own instance or on complaint by any 

person affected, and shall report the results of said investigations to 

the Administrator." 

S ection 1, Subsection ( b) is amended to read as follows: 

"(j) The Code Authority may make specific recommendations to 

the Administrator for changes in or exemptions from the provisions 

of this Code as to the working hours of machinery which will tend 

to preserve a balance of productive activity with consumption requirements, in order to properly serve the interest of the industry 

and of the public." 

S ection 1, Subsection ( c) is amended to read as follows: 

"(k) The Code Authority may also investigate and inform the 

Administrator on behalf of the Industry as to the importation of 

competitive articles into the United States in substantial quantities 

or in increasing ratio to domestic production on such terms or under 

such conditions as to render ineffective or seriously to endanger the 

maintenance of this Code and may act as an agency for making complaint to the President on behalf of the Industry, under the provisions of the National Industrial Recovery Act, with respect thereto." 

Am,erzd the followimg Sections by eliminating the words" Industry 

Committee " and substituting therefor the words " Code Authority ": 

Section 2, First paragraph. 

Section 2, Subsection ( c), second paragraph. 

Section 3. 

Section 7. 

Section 4 is amended as follows: 

Eliminate the word "Secretary" which appears at two places in 

the first sentence and two places in the second sentence and substitute therefor the words " Managing Director " in each of the four 

places mentioned. 

p ART V-GENERAL PROVISIONS 

Section 93 is amended as follows: 

Eliminate the word "Secretary" in the last sentence and substitute therefQr the words "Managing Director." · 
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S ection 3 is amended as follows: 

Eliminate the words "Industry Committee" and substitute therefor the words "Code Authority." 

PART VI-UNFAIR TRADE PRACTICES 

S ection 1 is amended as follows: 

Eliminate the words "Industry Committee" in the last sentence 

and substitute therefor the words "Code Authority." 

.Approved Code No. 23--.Amendment No. 2. 

Registry No. Z75-1- 03 

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