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3 1~62 08486 7 414 

Registry No. 243-1-03 

NATIONAL RECOVERY ADMINISTRATION 

PROP·OSED CODE OF FAIR COMPETITION 

FOR THE 

INF ANTS' AND CHILDREN'S KNITTED 

OUTERWEAR INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

O= 

' I 

The Code for the Infants' and Children's Knitted Outwear Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

'--

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED 3TATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

I . 

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

SUBMITTED BY 

KNITWEAR ASSOCIATION OF AMERICA, INC. 

(11) 
CODE OF FAIR COMPETITION FOR THE INFANTS' AND 

CHILDREN'S KNITTED OUTERWEAR INDUSTRY 

KNITWEAR Ass'N OF AMERICA, INc., 

1181 Broadway, New York City. 

To effectuate the policy of Title I of the National Industrial Recovery Act, during the period of emergency, by reducing unemployment, improving the standards of labor, eliminating practices harmful 

to the interests of the public, employees, and employers, and otherwise to improve the conditions of the infants and childrens knitted 

outerwear industry, to increase the consumption of the products of 

this industry by increasing purchasing power, and in other respects, 

the following provisions are hereby established as a code of fair competition for the infants and childrens knitted outerwear industry: 

I-EXPIRATION 

The terms of this Code shall be four months from the effective date 

of the said Code, and during which time, if any, subsequent changes 

or a new code is to be submitted to the President for his approval, such 

new code, when approved, is to be binding during the period of this 

Act. Should no new code be submitted within the four months period, 

then, this code is to remain effective and binding for the duration of 

the emergency and/or for the period of the Act. 

II-LICENSING 

A. In view of the peculiarity of the knitted outerwear industry in 

general making it possible for any manufacturer using any type of 

machine, to switch from the manufacture of one type of merchandise to 

another, thereby making it impossible for any one, or group of manufacturers to prolong a season for more than a month or two, it is hereby 

requested, in the interest of prolonging as much as possible the seasonable business, and keeping the plants in operation for as long a period 

as it is possible, that the President exercise his rights and authority 

under the act by immediately, upon the approval of this code, license 

each and every manufacturing plant or manufacturer of knitted outerwear, regardless of whether it be ladies, mens and boys, or infants and 

childrens knitted outerwear that be manufactured. 

B. Should these licenses be issued, each manufacturer is to notify 

the government the type of merchandise which the said plant intends 

to specialize in, and the issuance of the said license, will thereby preclude (unless by special permission of the governing board of the association, and of the President of the United States) said manufacturer 

from manufacturing any other types of merchandise than that for 

which he or it are licensed. 

0. It is satisfactory to the membership of this Association, and it is 

hereby suggested that the government, if it finds it necessary, defray 

the cost of this licensing, by making such reasonable charge for each 

license, as the government may see fit. 

D. This request is respectfully urged upon the Administration. 

9129-33 (1) 
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III DEFINITIONS 

A. The term "infants and children's knitted outerwear industry" 

as used herein, is defined to mean the manufacture or contracting of 

knitted outerwear apparel and/or the manufacture or contracting of 

knitted fabrics for outerwear purposes, used for children's garments. 

B. The term "employees", as used herein, shall include all persons 

employed in the production of the said knitted outerwear, including 

the wives and relatives of employers, and the ownership in whole or 

in part of the mill shall not exempt any person or persons fron1 any 

provision of this Code applicable to labor. 

0. The term "effective date", as used herein, shall be three days 

immediately following the day this code shall have been approved by 

the President of the United States. 

D. The term "act" as used herein, refers to the National Industrial Recovery Act. 

E. The term "persons" shall include natural persons, partnerships, associations, and corporations. 

LABOR 

IV-CHILD LABOR 

A. On or after the effective date of this Code, no employer in this 

industry shall en1ploy minors under the age of sixteen years. 

V-COLLECTIVE BARGAINING 

A. In accordance with Sub-Section 5, Section 7, of the Act, it is 

hereby stipulated and agreed, that employees shall have the right to 

organize and bargain collectively, through representatives of their 

own choosing, and shall be free from interference, restraint, or coercion of employers of labor, or their agents, in the designation of such 

representatives or in self-organization or in other concerted activities 

or the purpose of collective bargaining or other mutual aid and 

protection. 

B. That no employee and no one seeking employment, shall be re- quired, as a condition of employment, to join any company union or 

to refrain from joining, organizing, or assisting a labor organi.ziation 

of his own choosing. 

0. That employers shall comply with the maximum hours of labor, 

minimum rate of pay, maximum machine load of employees, and 

other conditions of employment approved or prescribed by the 

President. 

VI-HouR8 

A. After the effective date of this Code, no employer is to employ 

or permit the working of any employee as defined in the terms of this 

Code, to operate more than 40 hours per week, and no employees 

shall have the right to hold more than one position, or work more 

than 40 hours per week for any one in this industry. 
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VII-MACHINE HOURS 

A. Machine operations are hereby restricted to no more than 2 

shifts of 40 hours each, and this provision of the code is to become 

ineffective November 1st, at which time plant operations, for the 

duration of this Code are to be on a basis of one shift of 40 hours, and 

until the new code and provisions affecting this part of the code are 

submitted to and approved by the President. 

B. Female Employees.-Vnder no conditions are female employees 

to be employed after 6 P.M. of any day. 

C. Small Plant Restrictions.-Plants of 3 or more power machines 

must employ a regular knitter, besides the owner or manager of .the 

plant, and that the minimum salary of this knitter should be $25 per 

week. 

D. Machine Limitation.-In no event is a knitter or mechanic or 

helper permitted to operate more than 6 power machines. 

VIII-MINIMUM w AGE 

On and after the effective date, the n1inimum wage that shall be 

paid by employers in this industry to any of their employees, shall be 

as follows: 

Winder __ ______ _________ _________ __________________ _ 

Knitter (This knitter to do adjustments and make chains.)_ Experienced Helper ______ ____ __ _____________________ _ Ordinary helper (beginner) _________ ___ ______ ___ ______ _ Hand knitter __________ ___ __ ________________________ _ Learner ______________ __ ________ _________________ ___ _ Mechanic _______________________ ______ __ ______ _____ _ Separater ______ ____ ___ ____ __________ __ ____________ _ _ 

Cutter (experienced) ______ ______ ___ _________________ _ _ Cutter (helper) _____ _______________________ ___ ______ _ Finisher __________ _______ ______ ___ __ _____ __ ________ _ _ Examiner __________________________ _____________ ___ _ 

Merrow Operator_ ___ __________________ _____________ _ Crochet _________________________________________ ___ _ 

Cover Machine Operator ____________________ __ _______ _ Button-Hole Machine Operator __ __________________ ___ _ Button Sewer ____ _____ _________ __ ______ ____ _________ _ Presser ___________________ _______ ______________ ___ _ _ Shipping Clerk ______ ___ __ __ __ __ __ ___ _______ __ _______ _ 

XIV-MACHINERY 

$15. 00 

35. 00 

25. 00 

15. 00 

25. 00 

15. 00 

45. 00 

13. 00 

17. 00 

13. 00 

13. 00 

13. 00 

17. 00 

13. 00 

13. 00 

13. 00 

13. 00 

15. 00 

18. 00 

In the event that a manufacturer or contractor purchases new 

machinery, it is hereby understood that such machinery can only 

be purchased in the event of replacement of obsolete machinery, and 

that when such machinery is purchased, at least one machine of a 

similar type will be discarded. 

TRADE PRACTICE AND FAIR COMPETITION PROVISION 

X-UNIFORM ORDER BLANK 

A. It is hereby understood and agreed, that a uniform order 

blank adopted by, and satisfactory to, the distributor and the manufacturer and contractor will be used in this industry. 
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B. Contracts.-All orders accepted by the manufacturer and 

issued by the distributor are to be noncancellable by either party, 

and mu t be completed according to time and conditions specified. 

This, however, is subject to "Acts of God", etc. 

C. ]1.frs. Selling Direct.-No contractor or manufacturer will accept 

or manufacture any merchandise for such manufacturers who operate 

their own plants, selling their products to the retailer or consumer. 

D. Raw Material.-Yarn and other raw materials for n1erchandise 

to be manufactured on a contracting basis, in which the consideration is labor, is to be given to such contractors or manufacturers on 

memorandum and such material is to be worked up for the customer 

or distributor and billed back to them on a strictly labor basis. 

XI-HOME w ORKERS 

A. Realizing the necessity and the extreme importance of the use 

of homeworkers in this industry for minor manufacturing, and assuring the governn1ent that hon1eworking, as defined herein does not 

involve extreme physical labor or effort, therefore this cannot be 

construed as "sweatshop" conditions. This association, nevertheless, takes it upon itself to effectuate such rules and regulations, and 

to institute investigations from time to time, to prevent any "sweatshop" conditions or any real manufacturing....to be made by hon1eworkers. 

B. Homeworkers are also used in the 1nanufacture of hand crochet 

and hand knit infants garments. The manufacture of this type of 

merchandise constitutes a separate and distinct industry, and in view 

of the tremendous amount of women employed in this industry, and 

the impossible task of successfully supervising this branch of the 

industry, it is deemed best to permit the laws and regulations of the 

individual states, in which these women reside, to predominate and 

rule, and investigate the sanitary conditions, or otherwise, of the 

various homeworkers. This association, however, ,vill cooperate 

with the labor departments of the various states in any manner that 

these departments may see fit. 

XII-SELLING w ITH OUT PROFIT 

No person or manufacturer, or distributor in the infants and 

childrens knitted outerwear industry shall (1) sell or offer to sell at 

less than cost, plus a reasonable profit any of their merchandise, nor 

(2) 1nanufacture for sale, at a price destructive of the capital investment and/or to the earning power of labor, provided, however, that 

sales made in good faith to dispose of manufactured products accumulated through errors in manufacture, and then only upon notice to 

the governing board of this association. The interpretation of a selling 

price above cost shall be the cost of the average efficient producer and 

shall be a price that will include all fair and reasonable items of cost 

plus a fair and reasonable profit, taking into onsideration the nece -

sity of fair and reasonable compensation to labor and to producer of 

average efficiency. 
5 

XIII-STANDARD SIZES 

It is proposed, within 30 days from the effective date of this Code to 

establish a committee on standard sizes; such committee to consist of 

representatives of the distributor, the manufacturer, and the consumer, and at such time a uniform standard size of the various types 

of garments shall be established and when approved by the Bureau 

of Weights and Measures at Washington, D.C., each and every manufacturer operating under this Code, is to abide by such standards. 

XIV-MISBRANDING AND MISREPRESENTATION 

A. No person in this industry shall falsely mark and/or brand 

knitted outerwear products for the purpose or with the effect of 

misleading or deceiving purchasers with respect to the origin, trademarking, quality, yarn content, or construction of such products, 

which practice is hereby declared to be an unfair trade practice. 

B. No person in this industry shall make any false statements 

and/or false representations, oral or written, in connection with the 

sale or offering or advertising for sale of any knitted outerwear products with the intent of or effect of misrepresenting the same as to 

origin, trademarking, quality, yarn content, construction or service, 

and thus to deceive or mislead customers. Such practice is declared 

to be fraudulent and an unfair trade practice. 

XV-ARBITRATION 

A. The infants' and children's knitted outerwear industry, in the 

spirit of cooperation and good wm, approves of the value of abritration in the disputes between the distributor and manufacturer, or 

other parties, and the parties concerned agree to make every effort to 

arrive at an amicable agreement, and should they be unable to do so, 

it is hereby agreed to submit to commercial arbitration under existing 

codes, as preferable to litigation. 

ENFORCEMENT 

XVI-REPORTS 

A. For the purpose of supplying the President and the administrators of this Act with requisite data as to the observance and the 

effectiveness of this Code, and as to whether this industry is taking 

appropriate steps to enable it to intelligently adjust its hours of labor, 

wages, and productive capacity to the changing demands of consumers, industrial trends, and other conditions, in accordance with the 

declared policy of the Act, each employer shall furnish regular reports 

as hereina.fter provided. The Knitwear Association of America, Inc., 

is hereby constituted the agency to provide for the collection and 

receipt of such reports, and for the forwarding of the substance of such 

reports to the President the Association is to provide for the receiving 

and holding such reports themselves in confidence. Such reports 

shall be in such form and shall be furnished at such intervals as shall 

be prescribed by the Association, and shall contain information relevant to the purposes of this Code, as shall be prescribed by the 
6 

Association fron1 time to time, including information with respect 

to the following or related subjects: 

1. Employment hours, wages, and wage rates. 

2. Production, orders, billing, and stocks (in process and finished, 

of products manufactured). 

3. Financial and cost data. 

4. Active purchases, sales, and scrapping of machinery. 

5. Consumption and stocks of raw material. 

B. Governing Board.-The governing board of the infants' and 

children's knitted outerwear industry shall consist of representatives of the manufacturers, distributors and employees. This 

governing board will be set up to cooperate with the National Industrial Recovery Administration, as a planning and fair practice agency, 

for the infants' and children's knitted outerwear industry. 

0. Board Powers.-This Board shall administer all provisions of 

the Code, secure adherence thereto, hear and adjust complaints, 

consider proposals for amendment thereof, and exceptions thereto, 

and otherwise carry out for this Industry the purposes of the National 

Industrial Recovery Act, as set forth in this Code and for that 

purpose, it shall be and is hereby empowered to employ and use,. among others, the following means, sanctions, and methods: 

1. Any remedies, sanctions, and methods provided by the Act, in 

accordance with the provisions of the Act. 

2. The established agencies of government, Federal, State, and 

Municipal, under the laws presently in force, or which may hereafter· by enacted. 

3. The governing board shall have the power to call on the n1en1bers 

of the Knitwear Association of America, Inc., and its affiliates, for 

such funds as may be necessary in the carrying on of its activities. 

MEMBERSHIP 

XVII-MEMBERSHIP 

This Association shall impose no inequitable restrictions on admission to membership therein. This code is not designed to promote· . and shall not be construed to permit monopolies, nor is it designed to 

eliminate, nor press the small enterprises, and it shall not operate nor 

discriminate against them, but shall seek only to effectuate the policy 

of Title I of the National Industrial Recovery Act. 

This code is submitted mi behalf of 75 manufacturers and contractors, representing an investment in machinery and equipment of 

$4,000,000 and a yearly production of 750,000 dozen. 

This code, furthermore, has the support of the distributors, representing a yearly sales of $15,000,000. 

(Signed) NATHAN K. FELDHUHN, 

President. 

0