Approved Code No. 538 Registry No. 249- 02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WOMEN'S NECK\VEAR AND 

SCARF MANUFACTURING 

INDUSTRY 

AS APPROVED ON DECEMBER 19, 1934 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

\ 

I 

For sale by the Superintendent of Documents, Washington, D. C. • • - • • • • • Price 5 ce n ts 
This publication is for sa1e Oy the Superintendent of Documents, GoYemment 

Printing Office, \Ya..:hiogton, D. C., and by district uffi,es of the Bureau of Forei~n 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ART.:\lENT OF COMMER~E 

Atlanta, Ga.: 504 Post Oflice Building. 

Birmingham, Ala.: 257 Federal Building. 

Boston, l\las ·. : J 801 Customhouse. 

Buffalo, N. Y.: Chamber of Commerce Building. 

Charleston, S. C.: Chamber of Commerce Bulll1ing. 

Chit:ugo, Ill.: Suite 1706, 201 North \\.ells ::)rreet. 

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, 1\!icb.: 801 First l\ational Bank Building. 

H ou to11, 'Tex. : l1nmhel' of Commerce Building. 

Indianapolis Ind.: Chamber of CommPrce Building. 

Jacksonville, Fla.: Challlber of Commerce Building. 

Kan ·as City, Mo.: 1028 BnWmnre Avenue. 

Los Angeles, Calif.: 1163 South Broa(hvny. 

Loui ville, Ky.: 408 F ederal Builtling. 

Memphis, Tenn. : 229 Federal BuilclinO'. 

Minneapolis, l\linn.: 213 Federal Building. 

New Orlean:->, La.: l1otHn 225-A, Cu tombouse. 

New York, N. Y.: 734 Customhouse. 

Norfolk, Ya. : -:!06 E ast Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh. Pa. : Cbnmller of CPrnmerce Building. 

Portland, 01·eg.: 215 i\Tew P ost Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Franci C'O, Calif. : 310 Custom ll0URe. 

SeattlE>, Wa h.: 809 Federal Offiee Building. 
Approved Code No. 538 

CODE OF FAIR COMPETITION 

FOR THE 

WOMEN'S NECKWEAR AND SCARF 

MANUFACTURING INDUSTRY 

As Approved on December 19, 1934 

ORDER 

CoDE oF F AIR Col\rPETrTroN FoR THE woMEN's NECKWEAR AND ScARF 

MANUFACTURING I NDUSTRY 

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 Code of 

Fair Competition for the ""\:V omen's Neckwear and Scad Manufac- turing I ndu try, and hearing having been duly held thereon and the 

annexed report on said Code, containing findings with respect thereto, having been made and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwise ; 

does hereby incorporate by reference said annexed report and does 

find that said Code complies in all respects with the pertinent provisions and will promote the policy and purpose of said Title of 

said Act; does hereby order that said Code of Fair Competition be 

and it is hereby approved subject to the following conditions that: 

1. The Code shall not be applicable to dress manufacturers who 

manufacture women's neckwear as described in the Code Article I, 

Section 1, for use in conjunction with dresses manufactured by them, 

provided that such neckwear is manufactured in the same shop in 

which the drec: es are made. 

2. That portion of Article VII providing maximum cash discounts 

of 3/ 10 E. 0. :M., to the cutting up trade is hereby tayed for a period 

of thirty (30) days after the effective elate of this Code or until such 

time within such period of thirty (30) clays as another plan is 

adopted. 

3. :Minimum clas ified wages as prescribed in Article III, Section 

3 as to the Central and \Ve tern areas are hereby stayed for a period 

of thirty (30) clays after the effectiYe elate of the code, during which 

time a study is to be conducted by a commi sion e tablished by the 

103976°----1385-118----34 (79) 
80 

National Industrial Recovery Board for the purpose of recomml'lnding to the National Indu trial Recovery B ard what clas ified wage 

differential should become effective in the General and \Vestern 

areas; provided that luring such stay members of the Industry 

located in the Central and \Vestern area shall pay not less than a 

cla sified -wage on . uch operation as provided in Article III, Section 

3 which clas ified wage shall be not more than 257c below the minimum cla ified wages for sub. tantially the same operations as provided f or the Eastern area in Article III S ction 3. 

NATIONAL lND STRIAL RECOVERY BoAnD, 

By "'\V. A. HARRIMAN, Adm.inistrative Officer. 

Approval recommended: 

PRENTiss L. CooNLEY, 

Acting Division Ad1ninistrator. 

\V ASHINGTON, D. C., 

Decmnber 19, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The WhiteHouse. 

SIR: A public hearing on a Code of Fair Competition :for the 

Women' Neckwear and ~Scarf Manufacturing Incl us try, as proposed 

by theN ational 'iV omen's Neckwear and Scarf Association, representing approximately 73 per cent of the volume of the industry, was 

conducted on February 3, 1934, in the South Lounge of the Ambassador Hotel, ' ;y ashington, D. C. Every person who requested an 

appearance wa fairly heard in accordance with regulations of the 

National Recovery Administration. 

DESCRIPTION OF THE INDUSTRY 

The Industry as defined in the Code includes the manufactur~'> and 

sale by the manufacturer, contractor or jobber of misses', women's 

and children's neckwear, toppers, scarfs, ruffiings, vestees, guimpes 

and gilets. The articles enumerat€d in the definition of the Code 

when made in Dress factories and used in connection with garments 

manufactured in such factories, are exempted from the provi ions 

of this Code. 

Almost the entire Industry is situated in New York City and its 

envjrons. Of the estimated 110 firms listed in 1933 it was stated at 

the public hearing that 84 were members of the National Women's 

Neckwear and Scarf Association. The yearly sales of the Association members of this Industry amounted to approximately $16,000,-

000 in 1933 and for the entire Industry in the same year the sales 

were approximately $20,000,000 on a total invested capital of $7,000,-

000. It is estimated that the sales for the entire Indu try of the year 

of 1934 wi1l approximate $25,000,000. 

The products manufactured are , trictly styled items and the demand may be extremely variable. Factory equipment i applicable 

in the main to this Industry only, and cannot readily be devote l to 

manufacturing other items. However, the sale Yolume and caDital 

investment between 1929 and 1933 compares very favorably. There 

has been an increase in employment in the Industry of approximately 

11 per cent from_ 1929 to 1933, the present estimated employment 

being approximately 4,000. 

RES ME OF THE CODE 

Article I define the Industry and defines other terms used in the 

Code. Article II contains maximum hour provisions for employees 

and restricts the number of shifts of employees to one per day. Article III establishes the minimum wage for employee in the I ndustry. Article IV provides goneral labor provi ions. Article V provides 

for the organization of the Code Authority and defines its powers 

(81) 
82 

and contains a mandatory provision for asses~ment of members of the 

I ndustry to provide for Code Authority expenses. Article VI pro- vides that a label indicating compliance with the Code must be at- tached to all articles manufactured and sold. Article VII defines 

trade practices to which all n1embers of the Industry must comply. Article VIII states that the Code shall not permit monopolies. Article IX provides for the modification of the Code in accordance with 

Subsection (b) of Section 10 of the National Industrial Recovery 

Act. Article X explains that the policy of the Act is to increase real 

purchasing power and to hold price increases down to the actual ad- ditional increases in the seller's cost. Article XI provides that the 

effective date of the Code is to be the third :&1onday after its approval. 

LABOR 

The Industry in the New York area is almost completely unionized 

and is at the present time operating under an agreement between the 

National 'Vomen's Neckwear and Scarf Association, the International Ladies' Garment 'Vorkers Union and the Ladies' Neckwear 

Workers Union of Greater New York, Local No. 142, entered into 

October 8, 1933, to December 1, 1934. The wage and hour provisions set forth in the Code are in accordance with this agreement. 

FINDINGS 

The Deputy Administrator in his final report to the National Industrial Recovery Board on said Code, having found as herein set 

forth and on the basis of all the proceedings in this matter ; 

The National Industrial Recovery Board finds that : 

(a ) The Code is well designed to promote the policies and purposes 

of Title I of the National Recovery Act, including removal o:f 

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 the trade groups, by inducing 

and maintaining united action of lab9r and management under adequate governmental sanctions 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 reliev- ing unemployment, by improving standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs less than 50,000 employees; 

and is not classified by the National Industrial Recovery Doard as a 

major industry. (c) The Code as approved 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 ~', and 

Subsection (b) of Section 10 there0t; and that the applicant association is an industrial association truly representative of the aforesaid 

Industry; and that said association i1nposes no inequitable restrictions on admission to membership thorein. 
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(d) The Code is not designed to and will not permit monopolies or 

monopolistic practices. 

(e) The Cod·~ is not desi (l'ned to and will not eliminate or oppress 

small enterpri es and will not operate to discriminate against them. 

(f) Those engaged in other teps of the economic proces have not 

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

Code. 

For these reasons the Code has been approved. 

For the National Industrial Recovery Board: 

\V. A. HARRIMAN' 

DECEMBER 19, 1934. 

Adn-uinistrative Officer. 
CODE OF FAIR COJ\fPETITION FOR THE \VOJ\fEN'S 

NECK'.VEAR AND SCARF MANUFACTURING INDUSTRY 

PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the follo ing provisions are e tablished as a Code of 

Fair Competition for the \Vomen's Neckwear and Scarf Manufacturing Industry and hall be the standard of Fair Competition for 

this Industry and shall be binding upon every member thereof. 

ARTICLE I-DEFINITIONS 

1. The term "Industry" as used herein includes the manufacture 

and sale by the manufacturer, contractor or jobber of misses', 

women's and children' neckwear, toppers, scarfs, ruffiings, ruchings 

and backless vestees, also vestees, guimpes and gilets when manufactured without sleeves and with backs (joined at sides) only of 

plain net, organdie, voile or chiffon, or with backs of any material 

but with open sides, usually to be worn with a jacket or coat. 

2. The term "employee" as used herein includes anyone engaged 

in the industry in any capacity receiving compensation for hi serv~ 

ices irresp ctive of the nature or method of payment of such compensation, except a member of the indu try. 

3. The term "employer" as use l herein includes anyone by whom 

any such employee is compensated or employed. 

4. The tcnn "momber of the industry " includes anyone engaged 

in the industry as above defined ei her as an employer or on his own 

behalf. 

5. The term "contractor" as used herein includes all those who 

manufacture articles subject to the provisions of this Code from 

materi~ls provided for them by a manufacturer, contrac or, jobber, 

wholesaler, retailer or· others. 

6. The tenn "manual or mechanical processes " as used herein, 

include. the cutting, machine operating, hand sewing, pressing, 

Lasting, examining, sample making, finishing, draping, pinning, 

busheling, grading, or any other hand or 1nachine operation upon 

garments in any factory in the Industry. 

'7. The terms "President", "Act", and the "National Industrial 

H.ecovery Board" as u eel herein shall mean respectively, the President of the United States, Title I of the National Inclu trial Re- covery Act, and the National Industrial Recovery Bo rd for Indu ·-

trial Recovery. 

8. The term "jobber" as u eel herein, include.· all those for whom 

and/or under whose directions or orders, articles subject to the provisions of this Code are manufactured in whole or in part by contractors and/ or other manufactur rs, and who act a distributors 

thereof. 

(84) 
85 

9. The term "manufacturer " includes all those members of the 

Industry who manufacture products of this Industry as defined in 

Article I, Section 1 hereof for ale by themselYes. . 

10. (a) The term "ea tern area " as use l herei_n shall Include 

all States east of vVisconsin, Illinois, 1fjsc;:,,...,uri, Arkan. as and 

Louisiana. 

(b) The term "central area" as used her in shall include all 

States ea 't of :Montana, \Vyoming, crL~cb, New Mexi o, except 

those included in the eastern area. 

(c) The term " western area'' <• used hernin ·hall include all the 

States o " the United States, except those included in the eastern 

and central areas. 

ARTICLE II-HouRs OF LABOR 

SECTION 1. No employee shall be permitted to work in the manual 

or mechanical processes of manufacture in excess of thirty- ·even and 

one-half (37lj2 ) hours in any one week, or seven and one-half (7lj2 ) 

hours in any one day, or in excess of five (5) days in any one week, 

excepting as hereinafter provided. 

All work performed by such employees shall be performed during 

the first five working days of each calendar week, :Monday to Friday, 

inclusive, except that such employees may be permitted to \York 

Saturdays in either of the following cases : (1) \Vhen such e·mployees 

do not work on one of the first five working days of any calendar 

week due to the observance of a holiday and (2) when such employees are working overtime, in accordance with the provisions of 

Section 2 of this Article. 

SECTION 2. (a) Members of the industry may be permitte 1 to work 

their employees overtime provided that such overtime shall not exceed five ( 5) hours in any one week, nor ten ( 10) weeks in each o£ 

the spring and fall seasons, and provided further that such overtime 

shall be paid for at not less than the rate of time and one-half, 

except that overtime for employees engaged in other than manual or 

mechanical processes of manufacture may be paid for at the regular 

hourly rate. Such overtime may be on Sa.tu::.'day. 

(b) The Code Authority, subject to approval by the National Industrial Recovery Board, shall have the right to de ignate the beginning and end of 1each of the spring and fall seasons, and hall also 

have the right, to extend the number of weeks for overtime upon 

proper data showing the need for an extension of . uch overtime. 

(c) \ny designation of the \arion sea ons "hich the Code Authority may make pursuant to the foregoing secb on may be different 

for different branches of the Industry. 

(d) Each member of the Industry shall report monthly to the 

Code Authority, all overtime worked by uch employees. 

('e) Each member of the Industry shall give at least twenty-four 

(24) hours notice to the Code Authority of intention to work employees overtime. 

SECTION 3. No more than ·one shift of employees shall be allowed 

in any one (1) day. 

SECTION 4. Employees other ttan those engaged in the manual or 

mechanical proce<;:ses of manufacture, except as provided in Sec1039760----13 5- 118----34----2 
86 

tion 5 of this Article shall not be permitted to work in excess of 

forty ( 40) hours in any one week, nor eight (8) hours in any one 

day, nor in excess of six days in any seven-day period, except as 

otherwise pro,icled herein for overtime work. 

SECTION 5. The maximum hour provisions contained herein shall 

not apply to employees engaged in an executive, managerial or supervisory capacity, who are not directly engaged in productive work and 

who regularly recei\e not less than thirty-fiye dollars ($35.00) per 

week, nor to out ide sale men. SECTION 6. No employer shall lmowingly permit any employee to 

work for any time which when totaled with that already performed 

with anotLer employer or employers, exceeds the maximum permitted 

herein. SEcTio_._:r 7. The Code Authority may with the approval of the N ationa! Industrial RecoYery Board determine the hour of each working day before 1\"hich work shall not begin and the hour during each 

working day after which work shall cease. Such regulations may be 

different for different localities. 

ARTICLE III-WAGES 

SEcTION 1. This Article establishes minimum rates of pay which 

shall apply irrespective of whether an employee is actually compensated on a time rate, piece rate, or other ba is. 

SECTION 2. No employee shall be paid at less than the rate of fourteen ($14) dollars per week. 

SECTION 3. Employees performing duties of the occupations enumerated in the following schedule shall be paid not less than the 

following weekly and hourly rates: 

(a) Eastern Area : 

Cutters--------------------------------· C>perators _____________________________ _ 

Ironer --------------------------------· (b) Central Area : 

Cutters--------------------------------· C>perators _____________________________ _ 

Ironer --------------------------------· 

$40. 00 per week 

. 60 per hour 

. 4 7¥2 per hour 

35. 00 per week 

. 53 per hour . 42 per hour 

(c) Western Area : 

Cutters--------------------------------· 34. 00 per "ITeek 

C>perators______________________________ . vl pe hour 

Ironer --------------~-----------------· .40 per hour 

Any member of the Industry shall be deem d to have complied 

with the provisions of this Section if eighty percent (80% ) of the 

employees employed by such employer in each of the above crafts 

receive at least the minimum wage required in the foregoing schedule. H oweYer, in no event hall the total number of learners, superannuated or physically or mentally handicapped workers, and employees receiving less than the minimum required by the provisions 

of this section, exceed in number 20 % of the total number of em- ployees of any one employer engao-ed in the above crafts. 

A list of such workers receiving less than the minimum as heretofore provided, including their names, addresses and respective occu-
87 

pations shall be forwarded monthly by each member to the Code 

Authority. 

SECTION 4. H01ne-Work.-(a) A person may be permitted to engage in home-work at the same rate of wages as is paid for the same 

type of work performed in the factory or other regular place of 

business if a certificate is obtained from the State authority or other 

officer designated by the United States Department of Labor, such 

certificate to be granted in accordance with instructions issued by 

the United States Department of Labor, provided 

(1) Such person is physically incapacitated for work in a factory 

or other regular place of business and is free from any contagious 

disease; or 

(2) Such person is unable to leave home because his or her services 

are absolutely essential for attendance on a person who is bedridden 

or an invalid and both such persons are free from any contagious 

disease. 

(b) Any employer engaging such a person shall keep such certificate on file and shall file with the Code Authority for the trade or 

industry or subdivision thereof concerned, the name and address of 

each worker as certificated. 

(c) In addition to persons who may be permitted to do home-work 

as hereinbefore set forth, home-work may be given out by a member 

of the Industry to the workers not included under Sub-Section (a ) 

of Section 4 of this Article, only if subsequent to the effective date 

of the Code, at least one-half of the total number of articles of each 

types are produced in a factory maintained by, or operated for said 

member. Rates of pay for all type shall be established in the inside 

factory. 

(d) No member of the Industry shall give out home-work, unless 

the rates of pay, paid for such home-work, shall be not less than the 

rates of pay paid for such work in a factory maintained or operated 

by or for such member of the Industry. 

(e) No home-work shall be given out by any member of the Industry to any worker, unle s simultaneously therewith the names 

and addresses of the home-workers who receive the work and the 

workers engag cl in the a,...tual performance of the work are registered with the Code Authority, and unless an exact record of the 

work performed by and the prices paid to such home-workers are 

kept by the manufacturer. The Code Authority shall have the right 

to examine all such record·. \iVithin thirty (30) days after the 

effective date of thi. Cod , the Code Authority shall appoint a 

committee, to consist of an equ::1l number of representatives of employers and employees, to in\estigate the home-work problem. 

Within sixty ( 60) clays thereafter the committee shall report its 

findings and make such recommendations as will enable the Code 

Authority to control home-work to safeguard the labor standards 

provided for under this Code. (f) The Code Authority shall within ninety (90) days after the 

effective date of this Code, adopt rules and regulations for the provisions of this Section and may from time to time amend same. 

Such rules and regulations and amendments thereto shall be subject 

to the approval of the National Industrial Recovery Board. 
ss 

SECTION 5. L earn (' 7'S .-(a) Learners in manual and mechanical 

proces ·es may be paid less than the minimum wage scales provided 

for in Section 3 of Article III, but not less than at the rate of the 

ba ic minimum wage of fourteen dollars $(14.00) provided for in 

Section 2 of Article III. 

(b) If the operation to which any learner is engaged bas a piecework rate, e tabli ·heel in the factory in which c~l learner, is employed, and the ear ing.~ of ~uc h learner when compute 1 on a piecework basis, are mor than fourteen dollars ($14.00) per week such 

learner hall be paid on a piece-work basis. 

(c) The learning period shall be strictly limited to six ( 6) weeks, 

and in no ca. ·e shall the total number of learners in the em ploy of 

any one employer be greater than ten per cent (10% ) of the total employees of such employer. Any time worked by a learner shall be 

deemed a part of such learning period, whether such time is worked 

continuou -ly or in more than one shop, or for more than one 

employer. 

SE TION 6. A per. on whose earning capacity is limited because of 

age, or physical, or mental handicap, or other infirmity, may he 

employed on light 'vork at a wage below the minimum wage scale 

provided for in Article III, if the employer obtains from the State 

Authority designated by the United States Department of Labor 

a certificate authorizing his employment at such wages and for such 

hour · as shall be stated in such certificate. Each em.ployer shall file 

monthly with the Code Authority a list of all such persons employed 

by him, showing the wages paid to, and the maximum hours of 

work for such employees. 

SECTION 7. In no case shall wages be reduced below the levels existing two weeks prior to the date of approval of the code. All 

adju tments of wage rates made in accordance with this provision 

shall be reported to the Code Authority within thirty (30) days 

of the effective date of this code. The Code Authority shall have 

the right to investigate and adjust complaints arising under this 

provi ion; adjustments by the Code Authority shall be subject to 

review by the National Industrial Recovery Board. 

SECTION 8. Female employees performing substantially the same 

work as male employees shall receive the same rate of pay as male 

employees. 

ARTICLE IV-GENERAL LABOR PROYISIONS 

SECTION 1. No person under sixteen (16) year of age hall be 

employed in the Industry, nor anyone under eighteen (18) years of 

age at operations or occupations hazardou~ in nature or detrimental 

to health. The Code Authority shall submit to the National Industrial RecoYery Board before the expiration of sixty (60) days after 

the effective date of thi Code a li t of such occupations. In any 

state an employer shall be deemed to have complied with this provision if he hall have on file a certificate or permit duly issued by 

the Authority in said State empowered to issue employment or age 

certificates or permits showing such employee is of the required age. 

SECTION 2. Employees hall have the right to organize and bargain 

·collectively through representatives of their own choosing, and shall 
89 

be free from interference, restraint, or coercion of employers of labor, 

or their agents, in the designation of such representatives or in selforganization or in other concerted activities for the purpose of 

collective bargaining or mutual aid or protection. SEcTION 3. No employee and no one seeking employment shall be 

required as a condition o£ employment to join any company union or 

refrain from joining or organizing or assisting a labor organization 

of his own choosing ; and 

SECTION 4. Employers shall comply with the maximum hours of 

labor, minimum rates of pay, and other c-onditions of employment 

approved or prescribed by the President. SECTION 5. No provision in this cocle shall supersede any state or 

federal law which jmposes on employers more stringent requirements 

as to age of employees, wages, hours of work, or as to safety, health, 

sanitary or general working conditions, or insurance or fire protection, than are imposed by this code. 

SECTION 6. Employers shall not reclassify employees or change the 

occupations performed by employees or engage in any subterfuge so 

as to defeat the purposes of the Act or of this Code. . 

SECTION 7. Each member of the Industry shall be furnished by 

the Code Authority with official copies of the provisions of this Code 

relating to hours of labor, rates of pay, and other conditions of 

employment. Such official copies of such provisions shall contain 

directions for filing com.plaints of violations of such provisions, and 

shall be conspicuously posted at all times by such members of the 

I ndustry in each shop, establishment, or unit, to the extent necessary 

to make them freely accessible to all employees. Whenever any modi- fication of, or exemption, or exception from this Code permits any 

member of the Industry to pay lower wages or work his employees 

longer hours, or establish conditions of employment less favorable to 

his employees than those prescribed by the provisions of this Code, 

the Code Authority shall furnish such member with certified copies of 

such modifications, exemption, or exceptions in sufficient number and 

such member shall post same along side of such official copies of Code 

provisions. Every 1nember of the Industry shall comply with all 

rules and regulations relatiYe to the posting of provisions of codes of 

fair competition which may from time to time be prescribed by the 

National Industrial Recovery Board. 

SEcTION 8. Every employer shall provide for the safety and health 

of employees during the hours and at the places of their employment. 

Standards for safety and health shall be submitted by the Code 

Authority to the National Industrial Recovery Board within three 

months after the effective date of the Code. 

ARTICLE V- ORGANIZATION, PoWERS AND DuTIEs OF ConE 

AuTHORITY 

ORGANIZATION AND CONSTITUTION 

SECTION 1. A Code Authority is hereby established consisting o:f 

thirteen ( 13) representatives to be selected in the following manner: 

(a ) Thirteen (13) representatives of the Industry shall be chosen 

as follows : 
90 

1. Eight (8) members shall be selected by the "\Vomen's Neckwear 

and Scarf Manufacturers Association. 

2. One (1) member <;:haU be elected by members of the Industry 

in the Eastern area, who are not Inembers of the above-mentioned 

As ·ociation; one (1) member shall be elected by members of the 

Industry located in the Central area; and one (1) member shall be 

elected by members of the Industry located in the "\V estern area. 

(b) Two (2) representatives of the employees in the Industry who 

shall be appointed by the National Industrial Recovery Board upon 

the nomination of the Labor Advisory Board, of the National 

R.ecovery Administration. 

(c) Upon recommendation of the Code Authority, the National 

Industrial Recovery Board may increase the number of Industry 

members to provide for the representation of such further groups 

as it may deem necessary. 

SECTION 2. In addition to the membership as above provided, 

there may be from one to three members, without vote, to be known 

as Admini tration Members, to be appointed by the National 

Industrial Recovery Board for such terms as it may specify. 

· SECTION 3. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable restriction on membership, and 

( 2) submit to the National Industrial Recovery Board true copies 

of its Articles of Association, By-Laws, regulations, and any amendment when made thereto, together with such other information as 

to membership, organization and activities as the National Industrial Recovery Board may deem necessary to effectuate the purpo es of the Act. 

SECTION 4. In orde.r 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 National Industrial Recovery Board may prescribe such hearings as it may deem proper; 

and thereafter if it 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. 

SECTION 5. Nothing contained in this Code shall constitute members of the Code Authority as partners for any purpose nor shall 

any members of the Industry 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 m1der this 

Code, except for his own wilful malfeasance or non-feasance. 

SECTION 6. If the National Industrial Recovery Board shall at 

any time determine that any action of the Code Authority or any 

agency thereof n1ay be unfair or unjust or contrary to the public 

interest, the National In lustrial Recovery Board may require that 

such action be suspended to afford an opportunity for 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 National Industrial Recovery Board approves 
91 

or unless it shall fail tD disapprove after thirty (30) days' notice 

to it of intention to proceed with such action in its original or 

modified form. POWERS AND DUTIES 

SECTION 7. Subject to such rules and r egulations as may be i sued 

by theN ationa l Industrial Recov ry Board, the Code Authority shall 

have the following powers and duties in addition to those authorized 

by other provisions of this Code : 

(a) To insure the execution of the provisions of this Code and to 

provide for the compliance of the Industry with the provi ions of 

the Act. (b) To adopt By-Laws and rules and regulations for its procedure. 

(c) To obtain from members of the Industry such information 

and reports u.s may be required by the National Industrial Recovery 

Board for the adn1inistration of the Code. In addition to information required to be submitted to the Code Authority, members of the 

Industry subject to this Code shall furni h such statistical information as the National Industrial Recovery Board may deem ne e sary 

for the purposes recited in Sec ion 3 (a) of the Act, to such Federal 

and State agencies as it 1nay designate; provided that nothing in this 

Code shall relieve any member of the Industry of any existing obli- gations to furnish reports to any government agencies. All individual reports submitted by mem.bers of the Industry as hel'ein provided either to the Code Authority or any of its agencie or to 

agencie- of the Government, shall be treated as confidential, an l shall 

not be disclosed to any other member of the Industry or any ther 

party except such confidential employees of the Code Authority who 

are designated to receive such reports and such other governmental 

agencies as may be directed by the National Industrial Re ·overy 

Board. (d) To use such trade a sociations and other agencie it deems 

proper for the carrying out of any of its functions provided therein, 

pro-vided that nothing herein hall relieve the Code Authority of its 

duties and responsibilities under this Code and that such tra le association and agencies shall at all times be subj ct to and comply with 

the provisions hereof. 

(e) To make recommendations to the National Industrial Recovery Board for the coordination of the adn1inistration of this Code 

'V\ith such other codes, if any, as may be related to or effect members 

of the Industry. 

(f) 1. It being found necessary in order to support the administration of this Code and to maintain the standards of fair competi- tion established hereunder and to effectuate the policies of the Act, 

the Cole Authority is authorized: 

(a) to incur such reasonable obligations as are nece sary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purposes of the Code; 

(b ) To submit to the National Indu trial Recovery Board for its 

approval, subject to such notice and opportunity to be heard as it 
92 

may deem necessary (1) an itemized budget of its estimated expenses 

for the foregoing purposes, and (2) an equitable basis upon which 

the fund necessary to support such budget shall be contributed by 

members of the Indu try. (c) After such bu lget and ba ·is of contribution have been approved by the National Industrial Reco"Very Board, to determine 

and obtain equitable contribution as above set forth by all members of the Industry, and to that end, if necessary, to institute legal 

proceedings therefor in it own name. 

2. Each member of the Industry shall pay his or its equitable con- tribution to the expen es of the maintenance of the Code Authority, 

determined a hereinabove provided, and subject to rules and regula- tions pertaining thereto is ued by the National Industrial Recovery 

Board. Only memb rs of the Industry complying with the Code 

and contributing to the expenses of its administration as hereinabove 

provided (unless duly exempted from making such contributions) 

shall be entitled to participate in the selection of the members of 

the Code Authority or to receive the benefits of any of its voluntary 

activities or to make u e of any emblem or insignia of the National 

Recovery Administration. 

The Code Authority shall neither incur nor pay any obligation 

ub tantially in exce s of the amount thereof as estimated in its 

a pprovecl budget, and shall in no event exceed the total amount 

contained in the approved budget except upon approval of the N a- tional Indu trial Recovery Board; and no subsequent budget shall 

contain any deficiency item or expenditures in excess of prior budget 

estimates except those which theN ational Industrial Recovery Board 

shall haYe so approYecl. 

(g) To recommend to the National Industrial Recovery Board any 

action or measure deemed advisable, including further fair trade 

practice provisions to govern member of the Industry in their relations with each other or with other industries; measures of industrial 

planning and stabilization of employment; and including modifications of this Code which shall become effective as part hereof upon 

approval by theN ational Industrial Recovery Board after such notice 

and hearing as it may specify. 

(h) To appoint a trade practice committee which shall meet with 

the trade practice committees appointed under such other codes as 

may be related to the Industry for the purpose of formulating fair 

trade practices to govern the relation hip between employers under 

this Code and under such other codes to the end that uch fair trade 

practice may be proposed to the National Indu trial Recovery Board 

as amendments to this Code and such other codes. 

( i) To provide appropriate facilities for arbitration and, subject 

to the approval of the National Industrial Recovery Board, to prescribe rules of procedure and rules to effect compliance with awards 

and determinations. 

(j) The Code Authority shall cause to be formulated methods of 

cost finding and accounting capable of use by all member of the 

Industry, and shall submit such methods to the National Indu trial 

Recovery Board for review. If approved by theN ational Indu trial 

Recovery Board, full information concerning such methods shall be 
93 

made available to all members of the Industry. Thereafter, each 

member of the Industry shall utilize such methods to the extent found 

practicable. Nothing herein contained shall be construed to permit 

the Code Authority, any agent thereof, or any members of the 

Industry to suggest uniform additions, percentage or differentials or 

other unifonn it€ms of cost which are designed to bring about 

arbitrary uniform_ity of costs or prices. 

ARTICLE VI- LABELS 

SECTION 1. In accordance with the provisions of this Article, all 

products made in the Industry, as defined in Article I, Section 1, 

shall bear an NRA label to symbolize to purchasers of said products 

the conditions under which they were manufactured. The Code 

Authority shall have the exclusive power in the vVon'len's Neckwear 

and Scarf ~Ianufacturing Industry, or subdivisions thereof, to issue 

and furnish such labels to the members thereof. The Code Authority, subject to the approval of the National Industrial Recovery Board and in accordance with its regulations on 

the use of such labels, shall establish rules and regulations for the 

issuance of such labels and for the inspection, examination and 

supervision of the practices of members of the Industry using such 

labels. SEcTioN 2. All forms used and rules and regulations issued in connection with this Article for obtaining information from members of 

the Industry shall be subject to the approval of the National Industrial Recovery Board. 

SECTION 3. The Code Authority, subject to the approval of the 

National Industrial Recovery Board, shall prescribe the method by 

which said labels shall be attached to products of the Industry, to 

the end that such labels shall remain identified therewith when such 

product or products are sold, shipped or distributed by any member 

of the Industry. SECTION 4. Upon application to the Code Authority labels shall 

be issued to all members of the Industry subject to the Code, so long 

as they are complying with all provisions of the Code and of the 

Act and with all rules and regulations duly adopted pursuant thereto. 

The application for the use of labels shall be accompanied by a 

certificate of compliance with this Code substantially in the form 

prescribed by the National Industrial Recovery Board. 

SECTION 5. \Vhenever the Code Authority shall have cause to 

believe that anyone subject to the Code has violated any provision 

of the Code or of the Act, or of any rule or regulation duly acloptecl 

pursuant thereto, it shall give due notice of the charge against him 

and shall afford adequate opportunity to be heard. A substantial 

record of all hearings shall be made. If, after such he2.rings, in the 

judgment of the Code Authority, there is sufficient evidence of viola- tion to justify such action, the Code Authority may suspend the 

issuance of labels to such person or firm. Immediately, and in no 

case later than the day following the suspension of the issuance 

of labels, the Code Authority shall file a summary of the record of 

the hearing with such recommendations as it may deem proper, 
94 

with the National Recovery Admini tration Compliance Division, 

or uch branch thereof as it may de ignate. The National Recovery 

Administration Compliance Division, or desjgnated branch thereof, 

shall have the power, upon the record or after further hearing, to 

withhold the i uance of label , to withdraw the right to use labels, 

to affirm, uspencl or modifj the action of the Code Authority, or to 

take uch other appropriate action a it m<:ty leem necessary. In 

uch conference or hearings as may be held by the National Recov- ery Admini tration ompliance Division or designated branch 

thereof the Code Authority shall be given an opportunity to 

participate. 

SECTION 6. The Code Authority hall not give, or authorize to be 

given, any publicity in case of alleged violationS' until an a lju t- ment has been effected, or until the National Reco-., ery Administration Compliance Divi ion or de ignated branch thereof, shall have 

acted upon the case. 

SEcTION 7. The charge for labels by the Code Authority shall at 

all times be subject to the supervision and orders of the National 

Industrial Recovery Board an l shall not be more than th amount 

necessary to cover the actual reasonable cost thereof, including 

actual printing, distribution and admini tration and supervision of 

the use thereof. 

SECTION . This Article shall not become effective until such 

time as the Cole Authority, by re olution, shall declare an effective 

date for thi Article; such date shall in no event be les than fifteen 

(15) days after the publication of uch resolution by the Code 

Authority. 

ARTICLE VII-TRADE PR!, CTICE 

The following practices constitute unfair methods of competition 

by members of the Indu try and are prohibited : 

SECTION 1. No member of the Industry shall ell merchandise at 

a cash eli count in exce s of 8/ 10 E. 0. l\1. to the r tail trade and 3/10 

E. 0. M. to the cutting up trade. 

No extra dating shall be allowed except that merchandise shipped 

after the twenty-fifth of the month may be billed as of the first of 

the following month. 

SECTION 2. No member of the Industry hall ell merchandi e on 

consignment or on memorandum, except under conditions to be 

defined by the Code Authority -.,vhere the particular circum tances of 

the Industry require the practice, and such exceptions shall be ubject 

to a I proval of the National Industrial Recovery Board. 

SECTION 3. No member of the Industry shall accept for credit 

returned merchan li e except for defect in material and/ or manu- facture, delay in delivery, errors in shipment or failure to c nform 

to specifications. No returned merchandise hall be accepted for 

credit if returned after ten (10) day from date of receipt by customer, except for failure to conform with specifications or on account 

of defects in material and/or manufacture not eli coverable by reasonable inspection. Notice hall be given to the Code Authority of any 

returned merchandise accepted by a member of the Industry after 

ten (10) days from the date of ihe receipt thereof by the cu tol!ler. 
95 

SEcTION 4. Members of the Industry may permit anticipation of 

bill but in no event shall such anticipation be at a higher rate than 

6% per annum. 

SEcTION 5. No member of the Trade shall secr etly offer or make 

any payment or allowance of a r ebate, refund, commission, credit, 

un arned eli count or e:s:c~ss allowance, whether in the form of money 

or othen r]se, nor shall a memb r of tho Trada ecretly offer or extend to any cu to mer any special service or privilege, not extended to 

all cu tomers of the same cla s, for the purpose of influen incr a sale. 

ECTION 6. No member of th Industry shall pay transportation 

charo·e or make allowance for delivery charo·e other than f. o. b. 

city of origin ; memb rs of the Indu try shall charge additional delivery charges from the city of origin to the point from which the 

goods are shipped to the custon er. The delivery f merchandise by 

salesmen while traveling on their respective routes is I rohibited. 

SECTION 7. No member of the Industry shall directly or indirectly 

pay for the advertising expen es of its customer , prospective customers or their agents. 

SECTION 8. No member of the Industry shall consent to a repudiation of a contract andjor accept the cancellation of an order entered 

into in good faith, when the consent to such repudiation is for the 

purpose of giving such members unfair advantage or advantages 

over other members of the Indu try. 

SECTION 9. No member of the Industry hall defame competitors 

by f alsely imr uting to them dishonorable conduct, inability to perform contrr.cts, questionable credit tanding, or by the fal a disparagement of the gra le or quality of their goods. 

SEcTION 10. No member of the Industry shall give, permit to be 

given, or directly offer to give anything of value for the purpose of 

influencina or rewarding the action of any employee, agent, or r epr esentative of another member of the Ind 1stry in relation to the bu ·iness of the employer of such employee, the principal of nch agent 

or the represented party, without the knowledge of such e11ployer, 

principal or party. This provision hall not be construed to prohibit free an l general distribution of articles conu1only used for 

aclYertising except so far as such articles are actually used for commerc:ial bribery as hereinaboYe defined. 

SECTION 11. No member of th Industry shall maliciously induce 

breach of contract between any competitor and his employees engaged in executive or supervisory capacities with the intention of 

handicapping or embarrassing the competitor in the handling or 

conducting of his business. 

ECTION 12. No 1nember of the Industry shall wilfully withhold 

from or insert in any quotation, tatement of account or inYoice any 

statement that makes it inaccurate in any material particular. 

ARTICLE VIII-:MoNoPOLIES 

This Code shall not be construed or applied to promote or permit 

monopolies or monopoli tic practices or to eliminate or oppress small 

enterprises or to discriminate against them. 
UNIVERSITY OF FLORIDA 

ll llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll 

96 3 1262 08486 7984 

ARTICLE IX-:MomFICATION 

SECTION 1. Thi Code and all provisions thereof are expressly 

made subject to the right of the Pre ident in accordance -with the 

proYi ions of ub ection (b) of Section 10 of the National Inclu trial 

Recovery Act, from time to time to cancel or modify any order, 

approval, licen e, rule, or regulation issued under Title I of said 

Act and specifically, but without limitation, to the rio·ht of the President to cancel or modify his approYal of this Code or any conditions 

imposed by him upon his approval thereof. 

SECTION 2. Thi Code, except as to proYisions required by the Act, 

may be modified on the basis of experience or changes in circumstances, such modifications to be basel upon application to the N a- tiona! Industrial Recovery Board, and uch notice and hearing as 

it shall specify, and to become effective on approval of the National 

Industrial RecoYery Board. 

ARTICLE X- PRICE INCREASE 

Whereas the policy of the Act to increase real purchasing power 

will be made more difficult of consw11n1.ation if prices of goous and 

service increase a rapidly as wages, it is recognized that price increases except "uch as may be required to meet individual cost should 

be delayed. But when made such increases should, so far as possible, 

be li1nited to actual additional increases in the seller's costs. 

AnTICLE XI- EFFECTIYE DATE 

This Code shall become effective upon the third Monday after its 

approval. 

Approved Cod e No. 538. 

Registry No. 249-02. 

0 .