UNIVERSITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II llll llllll 11111111111111111 

3 1262 08483 0057 

Registry No. 275-1-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

UNDERWEAR 1\ND ALLIED PRODUCTS 

MANUFACTURING INDUSTRY 

AS APPROVED ON SEPTEMBER 18, 1933 

BY 

PRESIDENT ROOSEVELT 

- .... - , .. ,,o- .. ----

1. Executive Order of President Roosevelt 

2. Report of Administrator 

3. Text of Code 

UNITED STATES 

GOVERNMENT PRINTING OFF1€E i 1 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. • • - - • • - • Price 5 cents 
-
EXECUTIVE ORDER 

UonE OF FAIR CoMPETITION FOR THE UNDERWEAR .AND ALLIED 

PRODUCTS J\tf AN UF ACTURING INDUSTRY 

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 my approval of a Code 

of Fair Competition for the Underwear and Allied Products Manufacturing Industry, and hearings having been held thereon and 

the Administrator having rendered his report containing an analysis 

of the said Code of Fair Competition together with his recommendations and findings with respect thereto, and the Administrator having 

found that the said Code of Fair Competition complies in all respects 

with the pertinent provisions of Title I of said act and that the 

requirements of clauses (1) and (2) of subsection (a) of Section 3 

of the said act have been met. 

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 otherwise, do adopt and a pp rove the report, recommendations, 

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

of Fair Competition be and it is hereby approved, subject to tha 

following condition : 

(1) That all manufacturers included. within the provisions o:f 

Part I , Section 1 ( c) of the Code be granted a stay of fourteen (14) 

days after the effective date thereof, during which period they may 

show cause to the Administrator why they shou@ not be included 

under the provisions of such Section. 

Approval recommended : 

HUGH s. JOHNSON' 

Administrator. 

THE vV HITE HousE, 

FRANKLIN D. ROOSEVELT. 

September 18, 1933. 

(Ill) 
NATION AL RECOVERY ADl\fINI~TRATION 

To the President: 

INTRODUCTION 

This is a report of the hearing on the Code of Fair Practice for the 

Underwear and Allied Products Industry in the United States, conducted in Washington on August 10th and 11th, 1933, in accordance 

with the provi ions of the National Industrial Recovery Act: 

The following exhibits are included and attached: 

1. Final Code Submitted 

2. Notice of Hearing 

3. By-laws of the Underwear Institute 

4. Statement of Procedure 

5. List of Witnesses 

6. Transcript of the records 

7. Statistical Analysis by Research and Planning Division 

In the conduct of the hearing every person who had filed a request 

for an appearance was freely heard in public, and all statutory and 

regulatory requirements were complied with. 

The code which is attached was presented by duly qualified and 

authorized representatives of the industry, and complies with the 

statutory requirements, as representing fully seventy-five percent of 

the knitting and sewing machinery in the Underwear and Allied 

Products Industry. 

I. IND STRY Now OPERATING u NDER EXECUTIVE ORDER 

"Pursuant to the authority vested in me by Title I of the National 

Industrial Recovery ~~ct, approved Jmie 16, 1933, and pending action 

upon a Code of Fair Competition to be presented by the Underwear 

and Allied Products Industry, 

" I agree with the Industry Con~mittee, representing the manuf acturers of knitted, woven and a1l other types of underwear and/or 

allied products, including garments made in underwear mills from 

fabric made on underwear machines and including any and all 

fabrics sold and/ or used for underwear purposes made on flat or 

warp or circular knitting machines, whether as a final process or 

as a part o:f a larger or further process, pending the approval of a 

code of fair competition for the Industry, that they shall be bou~d, 

beginning July 24, 1933, by the provisions of the Cotton Textile 

Industry Code, as set forth in their letter of July 19, 1933, signed 

by the Members of the Industry Committee, offering thi_s agreement 

to the President o:f the United States, pursuant to ect10n 4 of the 

National Recovery Act, and addressed to G neral ~uo-h '. John. on, 

Administrator, agreement is subject to cancellat10n at any time 

without notice. FRANKLIN D. Roo EVELT." 

J U L Y 21, 1933. 

(IV) 
V 

The Underwear Industry has been operating under the above 

Executive Order since July 21, 1933. The definitions as contained 

in the Executive Order have been changed in the Code herewith 

presented. 

The underwear manufacturers included under the Executive Order but excluded :from the Code are preparing their codes .for presentation to the Administration before September 1st. 

It is understood that upon the effective date of the Code of Fair 

Competition for the Underwear and Allied Products :Manufacturing 

Industry as herewith pre,sented, this code should supersede the provisions of the above Executive Order for all those included in the 

definitions of said Code. 

II-DEFINITIONS OF THE INDUSTRY 

The Code o.f Fair Competition originally presented by the Underwear Institute in behalf of the Underwear and Allied Products 

Manufacturing Industry included the manufacturers of all types of 

underwear. 

It became evident during the Hearing that the underwear industry 

in its entirety could not be included in the definitiQns .of the Code 

of Fair Competition presented by the Underwear Institute. 

Accordingly, the branche,s of the industry listed below were excluded, with the approval of all present at the Public Hearing, 

.from being bound under the code herewith presented: 

1. Lingerie undergarments manufactured in the Philippines or 

Porto Rico from woven fabrics. 

The type of garment manufactured in the above-mentioned localities is of such a type that it is not in direct competition with similar 

products manufactured in the United States. The labor conditions 

in these localities are not comparable to the labor conditions in the 

United States. 

2. Infants' and Children's underwear and leggings, other than 

knitted cotton, and wo.ven cotton so-called "athletic type." 

As the above-m.entioned division of the underwear industry is so 

closely allied with the manufacture of other children's garments, it 

is essential that they be included under a code of fair competition for 

the infants' and children's wear industry. 

In Part I, Par. 1, Subpar. i, provisions are made so that when a 

code of fair competition for the infants' and children's wear industry 

is adopted that this type of underwear manufacture shall be included 

under the terms and provisions of such code to be adopted. 

3. NI:anufacture of fabrics sold or used mainly for underwear purposes made on circular knitting machines. 

This type of fabric which is largely made of rayon is included 

in the code of fair competition for the underwear and allied products 

industry herewith presented. 

It is r-2commended that a stay of fourteen days be granted to all 

manufacturers that may be defined under Part I , Pa.r. 1, Sub-par. c, 

for the purpose of determining whether or not this type of manufacturer should be included as a part of the Underwear and Allied 

Products Industry. 
VI 

III-LAnoR PRov:rsroNs 

The labor provisions in this code are substantially the same as 

the labor provi ions in the code for the Cotton Textile Industry. 

It is eleurly evident that the labor conditions should be substantially the same as many of the underwear m.anufacturers spin their 

own yarn on the same premises that these yarns are knitted into or 

converted into underwear either partially or wholly finished~ 

To establish any difference in the minimum wage or the working 

hours for employees in the manufacture of underwear would cause 

cii~culty in the labor conditions. 

It is therefore recommended that these provisions be made as 

outlined in Part II of the code. 

IV-1'.lACHINE HOURS 

Sufficient evidence was submitted substantiating the adoption of 

one 40-hour shift for sewing machines, and two 4-0-hour shifts :for 

knitting machines. 

The only objection filed was made by :Mr. William Hilleary, 

representing an underwear establishment located in a small town. 

The limitation · of machine hours would necessitate unemployment 

in this instance, but the employment situation as a whole will not be 

affected by any limitation of 1nachine hours. 

\ -REGI TRATION OF MACHINERY 

The Code as approved by the industry at the close of the Hearing 

contained the following provision: 

"On and after the effective date all persons engaged or- engaging 

in the Industry shall register with the Industry Committee each unit 

of their productive machinery. Upon recommendation by the Industry Committee the Administrator n1ay require that prior to the 

installation of additional productive machinery by persons engaged 

or engaging in the Industry, except for the replacement of a simibr 

number of existing n1achines, such persons shall secure from the 

Administrator a certificate that such installation will be consistent 

with effectuating the policy of the National Industrial Recovery 

Act during the period of the emergency, and the Administrator 

may grant or 'withhold such certificate." 

,vith due thought and consideration I have changed this provision 

to read: 

"On and after the effective date all persons engaged or 

engaging in the Industry shall register with the Ind11stry 

Committee each unit of their productive machinery." 

:for the reason that I .firmly believe such restrictiYe measures should 

have m(}re careful consideration before becoming a provision of a 

Code of Fair Competition. 

VI-ADMINISTRATION 

The provisions for administration of this code are capable of providing the Administration and the Underwear and Allied Products 

Industry with sufficient data to make recommendations for the elim-
VII 

ination of certain provisions in the code as herewith presented and/ or 

the addition of further provisions to this code which would be benecial to the industry as a whole. 

VII-UNFAIR TRADE PRACTICE 

The prov1s10ns for unfair trade practices contained in this code 

should, to a great degree, correct certain evils that have existed and 

that have developed in the industry. 

It is recommended that a careful study be made by the administrative body of the code as to the immediate results of the fair practice provisions of the code. 

Provisions for furthering the adoption of standards in the underwear industry will go a long way toward correcting some of the 

major evils now existing. 

* * * * * * * 

In this application for the approval of this code, it is stated that 

the applicants confidently believed their membership to include more 

than 75 % of the productive capacity of the entire underwear field, 

as follows: 

"Tfie following is a tabulation of the estimate of number of mills 

in each of the Groups which are covered by the" Code of Fair Competition for the Underwear and Allied Products Manufacturing Industry" and the number of such mills, in each group, which are members of the Underwear Institute: 

Knit Retail Group ____ --------------------------------------------- Knit Job bing Group __________________________________ --------------

Silk and Rayon Group ______________ ----------------------------- __ v,.r oven Group __________________________ ______ ____ _________________ _ 

Sweater Group __ _______________________________ -------------------- Warp Knit Fabric Group __________________ ------------------------ Knit El astic Group ____________ . _________________ -------. ---------.. Knit Work Glove Fabric Group ___________________________________ _ Beef Tubing and Stockinette Group _________ ____ __________________ _ Knit Cotton Wash Cloths and Novelties Group ___________________ _ 

I find that: 

EStimated Number of Percent 

Num:tJer of Members Production Mills 

22 22 } 95 167 135 

227 6:-:! 65.23 

66 60 84. 36 

36 33 80 

D2 26 98 

27 20 80 

6 5 80 

7 4 80 

2 2 ------------

(a) the code complies in all respects with the pertinent provisions of Title I of the Act, including, without limitation, subsection 

(a) of Section 7, and subsection (b) of Section 10 thereof; and that 

(b) the Underwear Institute imposes no inequitable restrictions 

on admission to membership therein and is truly representative of 

the Underwear and Allied Products Industry; and that 

( c) the Code is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate 

against them, and will tend to effectuate the policy of Title I of the 

National Industrial Recovery Act. 

Further, that the provisions of the code will result in a substantial increase in wages, and that there will be em ployed in the 

industry a greater number of persons than to be found in any peak 

period of operation. 
VIII 

The Code proYides for wage scales and maximum hours of work 

for all employees as well as those engaged in process operations. 

VIII-.CoNcLusroN 

For the first time in the history of the Underwear lndustry the 

majority of concerns in the manufacture of underwear and allied 

products combined and formed an association known as the Underwear Institute. 

In the formation or this Institute it became evident at the outset 

that a certain branch of the underwear industry was unwilling to 

become a part or be known as a part of the underwear industry. 

This particular branch is kno-wn as the manufacturers of circular 

knit rayon fabrics. They were not present at the Hearing and preYious to the Hearing did not attend any of the meetings held by 

the underwear committee in formulating their code. It was not 

until the close of the Hearing that a brief was filed by the majority 

of manufacturers of the circular knit rayon fabrics claiming exemption from the provisions of the underwear code. Their contention was that they are a separate industry. 

To facilitate the pa sage of the Code they agreed to acknowledge 

the code, provided they be granted a stay exempting them from the 

provisions of the code for a period of 14 days in which time they 

should show cause why they should be classed as a separate industry. 

The only other dis enting factor at the Hearing was a representative of a small mill claiming the limitation of machine hours would 

force him to dismiss one third of his workers, as he does not have 

sufficient capital to add more machines. As the majority of concerns in the underwear industry requested the limitation of machine 

hours, it is deemed advisable that this limitation remain in the Code 

with a possibility that in certain instances they might request exemption from certain provisions by submitting their plea for exemption 

to the underwear industry comn1ittee. 

The Code as originally presented at the H earing was chano·ed considerably before the termination of the Hearing, and the proponents 

of the original Code readily accepted the changes. 

All divergencies, except as stated, have been harmonized in the 

provisions as presented. 

Accordingly, I hereby recommend the approval of the Code of 

Fair Competition for the Underwear and Allied Products l\fanu-

:facturing Industry. 

Respectfully submitted. 

HuGH S. JOHNSON, Aclministrator. 
CODE OF FAIR COMPETITION FOR THE UNDERWEAR 

AND ALLIED PRODUCTS MANUFACTURING INDUSTRY 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Underwear and Allied Products Manufacturing Industry. 

p ART I-DEFINITIONS 

1. The term "Underwear and Allied Products JYianufacturing Industry " (hereinafter referred to as the Industry) as used herein is 

defined to mean the manufacture of-

( a) ICnitted, woven, and all other types of underwear manufactured from all types of materials, with the exception of women's 

· undergarments ( other than so-called athletic type), pajamas, and 

negligees made from woven f abrics of silk, rayon, cotton, or flannelette, or of any combination thereof, and also excepting women's, 

children's, and infant's lingerie undergarments manufactured in the 

Philippines or Puerto Rico from woven fabrics; 

(b) Garments made in underwear mills from fabric made on 

underwear machines, excepting, however, the cutting and fabricating of shirts other than undershirts, provided, however, that the 

manufacture of fleece-lined sweat shirts and other garments of like 

nature are not included in this exception; 

( c) Any and all fabrics sold or used mainly for underwear purposes made on flat or warp or circular knitting machines ; 

( d) ICnitted elastic fabrics; 

_(e) Knitted tubing for meat bagging; 

( f) Knitted work-glove fabrics; 

(g) Knitted fabrics made for leggings; and 

(h) ICnitted wash cloths: 

(i) Provided, however, That any person manufacturing infants' 

and children's underwear and leggings, other than knitted cotton and 

woven cotton, so-called, "athletic type" underwear, may elect to 

operate under the provisions of such Code of Fair Competition for 

the Infants' and Children's Wear Industry as may hereafter be approved by the President of the United States; pending the approval 

of such Code of Fair Competition for the Infants' and Children's 

Wear Industry such persons operating under the President's Reemployment Agreement may continue to operate under said Agreement, 

and such persons not operating under the President's Reemployment 

Agreement shall operate. under the provisions of this Code. 

2. The term" Employers" as used herein shall include all persons 

who employ labor in the conduct o:f any branch of the Industry. 3. Th term " Employees" as u ed herein shall include all persons 

employed in the conduct of any branch of the Industry. 

12101 °-133-46-:::3 (1) 
2 

4. The term "Productive Machinery" as used herein is defined 

to mean knitting machines and/or sewincr machines used in the 

Indu try. 

5. The term "Knitting Machines ' as used herein shall include 

all types thereof which have a part in the process of the manufacture of underwear and allied products as defined in paragraph 1 

above. _ 

6. The term " Se"ing l\1achine " as used herein shall include all 

types of sewing machines used in the manufacture of products as 

defined in paragraph 1 above. 

7. The term " Effective Date ' as used herein is defined to be the 

second Monday after approval by the President of the United States 

of this Code. 

8. The term "Persons " as u ed herein shall include natural persons, partnerships, associations, corporations, and trusts, including 

trustees in bankruptcy and receivers. 

9. The term "Mills" as used herein shall include all places where 

any of the kinds of manufacture defined in paragraph 1 takes place. 

10. The term "Institute" as used herein shall mean the Underwear Institute, located at 203 Union Trust Building, Washington, 

D.C. 

11. The term" Industry Corrunittee" as used herein shall mean the 

Underwear and Allied Products Nianufacturing Industry Committee provided for in Part IV of this Code. 

12. The term "Act" as used herein shall mean the National Industrial Recovery Act and all amendments thereto, and the term 

"Code" shall 1nean this and/or subsequent and/or supplemental 

codes and amendments thereto. 

13. The term" Secretary" as used herein shall mean the Secretary 

of the Institute. 

14. The term " Learner " as used herein shall mean an employee 

engaged in any process in the Industry requiring skilled labor with 

less than eight (8) weeks' experience in the same or any comparable 

process. 

15. The term "Privileged Employee" shall mean one who by reason of proven physical or mental infirmity is not able to do the 

minimum amount of work usually done by employees in his classification of work. 

p ART II-LABOR 

1. Prohibition of Ohild Labor.-On or after the effective date of 

this Code, employers shall not employ any minor under the age of 

sixteen (16) years. 

2. Elimination of Home W ork.-N o part of the process of the 

manufacture of the underwear and/or allied products covered by 

this Code shall take place in the home prenuses or living quarters of 

any person. The purpose o:f this provision is to prohibit the distribution by any person governed by this Code of products or 

materials to anyone :for home work. 

3. Regulation of Hours of Work.-(a) On and after the effective 

date, employers in the Industry shall not operate on a schedule of 

hours of labor for their employees-except office and supervisory 

staff, repair-shop crews, engineers, electricians, firemen, machine 
3 

fixers, shipping, watching, cleaners, and outside crew-in excess of 

forty ( 40) hours per week. 

(b) On and after the effective date the maximum hours of labor 

of reJ?air-shop crews, machine fixers, engineers, electricians, and 

watching crews in the Industry, shall, except in the case of emergency 

work, be forty ( 40) hours a week with a tolerance of 10 percent. 

Any emergency tin1e in any mill shall be reported monthly to the 

Institute. 

( c) On and after effective date the maximum hours of labor 

for office employees in the Industry shall be an average of forty 

( 40) hours a week over each period of one month. 

( d) Until adoption of further provisions of this Code that may 

prove necessary to prevent any in1proper speeding up of work 

(stretch outs), no employee shall be required to do any work in 

excess of the practices as to the class of work of such employee prevailing on July 1, 1933, or prior to the Share the Work 11ovement, 

unless such increase is submitted to and appro,ed by the Industry 

Committee create l by the Code and by the Administrator. 

( e) These provisions for maximum hours establish a maximum 

of hours of labor per week for every ernployee covered, so that 

under no circumstances will such an e1nployee be e1nployed or permitted to work for one or more employers in the industry in the 

aggregate in excess of the prescribed number of hours in a single 

week. 

4. JJ£inimu1n lVage Rates.-(a) On and after the effective elate, 

the minimum wage that shall be paid by employers in the industry 

to any of their employees-except to learners, privileged employees, 

cleaners, and outside crews-shal be at the rate or $12.00 per week 

when employed in the Southern section or the Inclu try and at the 

rate of $13.00 per week when employed in the Northern section for 

forty ( 40) hours per week of labor. Learners shall be paid "t the 

standard piece-work rate, but in no event shall be paid less than 

$8.00 per week. 

The States of Virginia, 'I'enne~see> North Carolina, South narolina, Georgia, Florida, Alabama, Mississippi, Arkansas, Texas, 

Louisiana, Oklahoma shaH constitute the Southern c:ection of ,.he 

Industry. Other states and the District of Columbia shall constitute 

the Northern section. 

(b) The amount of difference existing prior to the effective date 

between the wage rates paid ,arious classes of employees receiving 

more than the established minimum wage shall not be dccrea ... ecl; and 

in no event shall any employer pay any employee a wage rate which 

will yield a less wage for a work week of forty ( 40) hours than such 

employee would have received for the same class of work for the 

longer week o:f forty eight ( 48) hours or n1ore prevailing prior to 

the effective elate. It shall be a function of the Industry Committee 

to observe the operation of these provisions and recommend to the 

Administrator such further provisions as experience may indicate 

to b-e appropriate to effectuate their purpo es. 

( c) The provisions for a minin1um wage in this Code establish a 

guaranteed minimum rate of pay per hour of employment regardless 

of whether the employee's compensation is otherwise based on a 

time rate or upon n. piece-work performance. 
4 

( d) Cleaners, outside workers, and privileged employees combined 

shall not exceed eight (8) percent of the total employees; they shall 

receive not less than seventy-five (75) percent of the minimum wage 

provided for ordinary employees in Clause (a) above and when 

working on a piecework basis shall receive the standard piecework 

rate -for the particular operation performed. 

5. General R egulations.-Employers c::hall comply with the requirements of Section 7 (a) of Title I of the National Industrial 

Recovery Act as follows : 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall 

be free from the 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 for the purpose of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to 

refrain from. joining, organizing, or assisting a labor organization 

of his own choosing. 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of .pay, and other conditions of employment, approved 

or prescribed by the President. 

p ART III-MACHINE-HOURS 

1. No sewin9 machine shall be operated for more than one ( 1) 

shift of forty ~ 40) hours per week. 

2. No knittinA machine shall be operated for more than two (2) 

shifts of forty ~ 40) hours each per week. 

p ART IV-ADMINISTRATION 

1. To effectuate further the policies of the Act, an Underwear and 

Allied Products Manufacturing Industry Committee is hereby set 

up to cooperate with the Administrator as a planning and fair practice agency for the Underwear and Allied Products Manufacturing 

Industry. This Comn1ittee shall consist of six representatives of the 

Underwear and Allied Products Industry, duly elected by the members of the Underwear Institute, and three members without vote 

appointed by the President of the United States. The Industry 

Committee 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. 

(a) The Industry Committee 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 resnlts of said investigations to the Administrator. 

(b) The Industry Committee may make specific recommendations 

to the Administrator for changes in or exemptions from the pro-
5 

v1s10ns of this Code as to the working hours of 11.nachinery which 

will tend to preserve a balance of productive activity with consumption requirements, in order properly to serve the interests of 

the industry and of the public. 

( c) The Industry Committe 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 com.plaint to the President on behalf of the Industry, under 

the provisions of the National Industrial Recovery Act, with 

respect thereto. 

2. With a view to keeping the President informed as to the observance or nonobservance of this Code of Fair Competition, and 

as to whether the Underwear and Allied Products Industry is taking appropriate steps to effectuate the declared policy of the 

National Industrial Recovery Act, each person engaged in the Industry shall furnish duly certified reports in substance as follows 

and in such form as may be provided by the Industry Committee: 

(a) W aqes and Hours of Labor.-Returns every four weeks duly 

certified showing actual hours worked by the various occupational 

groups of employees and mini,mum weekly rates of wages. 

(b) Machinery Data.-Returns every four weeks duly certified 

showing the number of knitting and/ or sewing m.achines in place, 

the number of such machines actually operated each week, the number of shifts, and the total number of machine hours each week 

for each of the above types of machine. 

c. Production Data.-Returns every four weeks duly certified 

showing, in terms of the unit commonly used by the various branches 

of the Industry affected, e.g., linear yards, pounds, pieces, or dozens, 

the following: 1, production; 2, stocks on hand ( (a) sold, ( b) unsold) ; 3, new orders; 4, unfilled orders. 

The Underwear Institute, 203 Union Trust Building, \:Vashington, 

D.C., is hereby constituted the agency to collect and receive such 

reports. The Industry Committee may from time to time, subject 

to the approval o:£ the Administrator, modify the nature of these 

reports. 

3. On and after the e:ff ecti ve datB all persons engaged or engaging 

in the Industry shall register with the Industry Committee each 

unit of their productive machinery. 

4. Each person shall file with the Secretary of the Institute 

promptly upon its issuance each and every price list, duly certified 

by a proper executive, showing all prices of the respective merchandise of the respective person, and all terms, including cash and 

quantity discounts and allowances of every description and condition~ pertaining to transportation charges or allowances applying 

thereto, and shall likewise promptly notify the Secretary as to any 

and all chr"nges in such prices, terms, discounts, and allowances not 

covered by price lists. Such price lists and notices shall be filed by 

the Secretary for reference, and shall be available f or jnspection 

only by the Secretary or the Administrator, or their duly authorized 
6 

representatives. Nothing in this paragraph· shall be construed to 

nullify or modify any other provision of this Code. 

5. All persons and agencies thereof shall be charged with the 

keeping of all records required to be kept by the provisions of this 

Code in such manner that an inspection of them shall show readily 

and easily whether or not the provisions of this Code have been or 

are being violated. 

G. Any employer may participate in any activities of the Underwear Institute and in the preparation of any revision of, or additions 

or supplements to, this Code by assuming the proper pro rata share 

of the cost and responsibility of creating and administ~ring it, either 

by becoming a member of the Underwear Institute or by paying to 

it an amount equal to the dues from time to time provided to be 

paid by a member in like situation of the Underwear Institute. 

7. Subject to the approval of the Administrator, there shall be 

established and maintained by each person engaged in the Industry 

methods of cost finding approved by the Indust_ry Committee. 

p ART V-GENERAL PROVISIONS 

1. No person shall manufacture or contract for the manufacturing 

of underwear or allied products in penal or other institutions not 

conforming to hours and standards required by this Code. Underwear or allied products produced in such institutions shall not be 

merchandized or sold in such a manner as to create unfair competition under this Code. 

2. All standards already formulated in cooperation with the Bureau of Standards of the United States Department of Commerce 

and approved by the Industry or standards which shall be so formulated and approved shall become the standards for the Industry. 

All merchandise manufactured after the effective date shall be 

plainly and visibly marked by an indelible ,stamp or firmly sewn 

label "substandard", where such merchandise comes below the minimum standards. Every manufacturer shall plainly mark with an 

indelible stamp or firmly sewn label the sizes o.f measurements of 

his product thereon. However any merchandise manufactured 

prior to the date of adoption of a standard for ~uch merchandise 

shall not, in any case, be classified as "substandard" merchandise, 

and the Secretary shall notify all known interested persons in the 

Industry of each new standard adopted and the effective date thereof. 

· 3. Where the costs of executing contracts entered into in the Indu,stry prior to the presentation to Congress of the National Industrial Recovery Act are increased by the application o.f the provisions of that Act to the Industry, it is equitable and promotive of 

the purposes of the Act that appropriate adjustments of such contracts to reflect such increased costs be arrived at by arbitral proceedings or otherwise, and the Industry Committee, the applicant for 

thi,s Code, is constituted an agency to assist in effecting such adjustments. 

4. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provision of Clause 10 (b) of the National Industrial Recovery Act, 
7 

:from time to time to cancel or modify any order, approval, lieense, 

rule or regulation, issued under Title I of said Act, and specifically 

to the right of the President to cancel or modify his approval of 

this Code or any conditions imposed by him upon his approval 

thereof. 

5. Such of the provisions of this Code as are not required to be 

included herein by the National Industrial Recovery Act, may 

with the approval of the President, be modified or eliminated if it 

appears that the public needs are not being served thereby and as 

changes in circumstances or experience may indicate. They shall 

remain in effect unless and until so modified or eliminated or until 

the expiration of the Act. It is contemplated that from time to time 

supplementary provisions to this Code or additional codes will be 

submitted for the approval of the President to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes and policies of Title I of 

the National Industrial Recovery Act. 

6. The Underwear Institute, the applicant for this Code, shall 

impose no inequitable restriction upon admission to membership. 

p ART VI-UNFAIR TRADE PRACTICES 

To effectuate the purposes of the National Industri al Recovery 

Act, persons engaged in this Industry shall comply with the following trade practices, and violation of any of them shall be construed 

as an act of unfair competition: 

1. In order to prevent destructive prir-e cutting in the Industry no 

person shall sell any merchandise at less than its "reasonable cost " 

except as to defective goods known in the trade us "Irregulars ", 

"Imperfects", or "Seconds", which, when sold, shall be plainly 

and visibly so marked on each garment and invoiced, and except as 

to goods discontinued from the line of the respective person, and 

therefore no longer to be manufactured by such person. sold at a 

discount price as " close outs " and so designated in the sale and the 

invoicing thereof, provided, however, that the Institute shall submit 

to the Administrator, within six months after the effective date of 

this Code, a plan for regulating the dispo al of distress merchandise 

in a way to secure the protection of the owners and to promote sound 

and stable conditions in the Industry. The Industry Committee 

shall, subject to the approval of the Administrator, define "reasonable cost·,, for the purposes of this Code and determine upon a 

basis to be uniform among the persons of this Industry as the 

character of the items to be included in such "reasonable cost." 

2. Standards terms shall be 2/ 10 E.O.M. or net 60 days. Invoices 

on and after the 25th of the month shall be as of the first of the 

following month. :Th1aximurn rate of anticipation shall be 6 percent 

per annum. Closer terms shall not be prohibited. The building up 

of prices to take care of greater discounts than 2 percent shall be 

prohibited. These terms shall become effective on the effective elate 

of this Code, except as to shipments against orders booked prior to 

the effective date of this Code. 
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3. No person shall affix to any merchandise, or to the packaging 

thereof, fictitious resale price tickets, or other resale price indication, 

which may make it appear to the buying public that the actual resale 

price charged by the ultimate seller is lower than the supposed standard as indicated by such fictitious resale price indication. No person 

shall sell on consignment basis, directly or indirectly, or grant rebates 

to any customer, or enter into any secret selling conditions with any 

customer. No person shall allow the equivalent of secret rebates or 

secret discounts in the way of advertising or other allowances. No 

person shall accept and pay for, or make credit allo~ances for, goods 

returned for other causes than fault or error of the seller. 

4. Regular number, i.e., "Firsts", shall not be marked "Seconds", 

or so sold. Misrepresentation or misbranding of merchandise is an 

unfair trade practice. No person shall enter into any form of special 

remuneration of employees of a customer to encourage such employees to push the sale of such person's merchandise to the detriment of competitors. No person shall enter into any false or misleading advertising. No person shall imitate the trade marks, trade 

names, and/or trade slogans of competitors. 

p tlRT VII-MONOPOLIES 

This Code shall not in any w_ay permit monopolies or monopolistic 

practices. 

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