Approved Code No. 276 Registry No. 231-1-06 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PLEATING, STITCHING 

AND BONNAZ .~ND HAND 

EMBROIDERY INDUSTRY 

u. 

• I 

AS APPROVED ON FEBRUARY 10, 1934 

BY 

' . '

PRESIDENT ROOSEVELT 

0~ 

WE J)O OUR PARt 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

,_ For sale by the Superintendent of Documents, Washington, D.C. Price fi cents 
This 1mbli ·ation L for sale by the , up rintendent of Do<:umeul ~, Gu ernrueut 

Printing ffice, Wa hinITT:on, D. '., and by di trict ffit e of the Bureau of ◄ or ign 

and Dome tic Commerce. 

DISTRICT OFFIOES OF THE DEP ARTME T OF COllMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Cu tomhouse. 

Buffalo, N.Y.: Chamber of ·commerce Buililing. 

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

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich. : 801 Fir t ational Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

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

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 ~w Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhou e. 

Seattle, Wa h.: 809 Federal Office Building. 
Approved Code No. 276 

CODE OF FAIR COMPETITION 

FOR THE 

PLEATING, STITCHING, AND BONNAZ AND HAND 

EMBROIDERY INDUSTRY 

As Approved on February 10, 1934 

BY 

PRESIDENT ROOSEVELT 

EXECUTIVE ORDER 

• 

APPROVING CODE OF FAIR COMPETITION FOR THE PLEATING, STITCHING, 

AND BoNNAZ AND I--IAND EMBROIDERY 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 Pleating, Stitching, a_nd Bonnaz and 

• Hand Embroidery Industry, and hearings having been held thereon 

and the Adrn.inistrator having rendered his report containing an 

analysis of the said Code of Fair Competition together with his 

recomm~ndations and findings with respect thereto, and the Adm.inistrator having found that the said Code of Fair Competition 

complies in all respect with the pertinent provisions of Title I of 

said Act and that the requirements of clauses (1) ancl (~) of 

subsection (a) of Section 3 of the said Act have been met: 

NOvV, 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 approve 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 the 

fallowing conditions : 

That the Code Authority shall make a complete and detailed 

study to determine whether the minimmn wages provided in Article 

IV of the Code are in fact tending to become maximum wages, and 

the Code Authority shall report to the Administrator thereon, within 

sixty (60) days after the effective date hereof, with recommendations for the continuation, elimination, or m.odification of any or 

all of the wage rates provided in the Code. Upon the approval of the 

39358°--376-49--34 (403) 
404 

ppr Yal r comm n 1 l. 

H H . J II.i: O~T 

Adminid1'afor. 

THE ''T HITE H E, 

F b1"U01'Y JO 1 34. 

• 
LETTER OF TRANSMITTAL 

THE PRESIDENT' 

The vV hite House. 

Srn: The proposed Code of Fair Competition for the Pleating, 

Stitching and Bonnaz and Hand Embroidery Industry was submitted and a hearing thereon was held the third day of October 

1933. Every person who filed a reque.st for an appearance was fully 

heard in accordance with statutory and regulatory requirements. 

Testimony at the hearing showed that this Code represents a 

consolidation of separate Codes which were presented by various 

groups throughout the United States. The letter of transmittal 

states that the Code is the joint work of eight a,ssociations, two o-f 

which, the National Association of Pleaters, Stitchers, and Embroidery Manufacturers, Inc., and the Embroidery Manufacturers Association, both of New York City, combined, represent approximately 

75 percent of the entire industry in the United States. 

Following the public hearing a succession of conferences worked 

diligently to harmonize divergent viewpoints among the manufacturer,s of the different markets and to find ways to deal with many 

grave abuses that were disrupting the industry. The prorated 

meetings were worth the effort, for the final code is the agreed-ugon 

opinion of 95% of the industry. The dissenting 5% mostly represents those contractors who have utilized home workers in producing their output. 

Though it covers a wide range of products, the industry is primarily a service industry to the wearing-apparel group, with wide 

seasonal variations in productivity and violent fluctuations in styles 

to meet changes in fashion. Most of the workers are highly skilled. 

Even the embroidery produced on the Bonnaz machine is an individualized product, while much of the hand work is artistry of a high 

order. 

Stabilization of the industry has been impossible in the past. 

Vicious competition through exploited home workers and owneroperated shops careless of health, fatigue, night, day, or Sundays 

have been the source of bottomless price cutting. The problems 

that arose from these fundamental conditions were the object of 

great consideration by the conferences in the preparation of the 

Code and ths Code represents their considered answers to those, 

problems. 

Specifically the Code covers the manufacture and production of 

pleating, stitching, Bonnaz embroidery, hand embroidery, crocheting, crochet beading, hand drawing ( except handkerchiefs), rhinestone trimming, eyelets ( except automatic eyelets), nailheads, bindings and pipings, and all other embroidery and stitching accessories 

to the wearing apparel industry; and the production of articles 

using those operations. 

(405) 
4 6 

RE IE F ODE A ' T HO R A D w AG 

a 35-hour , ek ancl a normal w rk day 

mplo ·c ma ' " . rl rn r than hour · in any 4 

h ma ·irn um h m· · p r we k: for · l ri 'al or ffic~ 

mploy 1 ~ t t 40 · th maximum l er <la ' i 9 h ur '. D ·ign r , utsi 1 al m n and mployee in mana~ rial or x utiv ·ar aciti ·, r e iving mor than 30.00 p r we ~Jr, are xc pt l from the 

niaximum hour provi i ns of thi d . Th tandanl w rk w k 

f r hipping 1 rk , porters, and at hm n i 40 hours; for a n1aximum period not to e ceed 16 w eks in any calendar y a· th e emplo e ma " be permitt d to work 48 hour pro ided that oy rtime 

work is compen ated at not less than the regular rate or he 40-

hour week. Employ es on emergency ork are permitted 10 perc nt toleran in exce · of the 40-hour week with pa ment f time 

and one third for overtime. Foremen and fore om n wh cl no 

pro luctive work are permitted to work 40 hour in an on week, 

with 10 percent tolerance. 

Th minimum wage establi heel i 35 cent per hour. The ode 

contains a long clas ification list of minim.llln wage rates by occupation. The minima for all the occupations or craft in the in lustry 

range from $12.25 to $42.00 per week with differentials for all 

1narket outside of the New York Metropolitan Area. The cla i1i a ion as it appears in the Code is uniform throughout the indu try and it wa maintained in the Code because it repre ents a 

long established custom in the industry and is ace ptable to all 

e tablishments without regard to their geographic loca.tion or their 

industrial relation status. 

The wage scales and differential. are left open for inve tigation 

by the Code Authority. The purpose of such investigation ( to be 

initiated within 10 da s of the Constitution of the Code Authority) 

i to determine the fairness and accuracy of the differentials and 

classifications and within 60 days to make recommendations to the ... dministrator with r pect to changes or modifications, which if 

approved by the Administrator, after notic and hearin · hall 

b come binding provisions of the Code. 

Overtime is to be investigated by the Code Authority for th purpo e of determining equitable rules to govern thi type of work in 

th , ariou market . The Code provides that the ode Authority 

hall make recommendation to the Admini trator7 hi h upon his 

approval, after notice and hearino- shall become bm ling pr vi ions 

of he Code. 

The problem of' learners' or apprentice al o i to be ·tudied 

by the Code Authority and recommendation made thereon to the 

Admini trator which, upon hi appr al, after notice and h arinoshall be bindino- provi ion of the C de. 

1~ ' 1 OMI ' EFFE("ft- lf THE ODE 

A· ·ording t tl e report of th R · ar h and Plannino- Divi ion 

j i.· -timat d ha ther ar ab ut 5 500 work r employ d in the 

factori e: in thi indu. tr at th pr nt tim ( OY mb r 1933) and 
407 ., 

about 2,000 unemployed. Assuming that the industry has been operating on the basis of a 48-hour week, the 35-hour maximum 

proposed in the Code will require an additional 37 percent of the 

labor force now employed to maintain the present production. In 

other words, the 35-hour week will give reemployment to about 2,000 

more workers than now employed, thus absorbing the estimated number of all unemployed factory workers. The same report estimates 

that a 37 percent increase of the number of workers employed means- on the basis of November 1933 wages-a 37 percent increase in the 

pay roll. 1Vith the reduction of the work week and the establishment of the minimum wage rates it is calculated that the present 

pay roll may increase approximately 50 percent. 

Home work was at first a serious difficulty, since there have been 

more workers employed by this industry in their homes than in 

factories, although the exact number of home workers cannot be 

determined. It was estimated at the public hearing by some of the 

employers who were sponsors of the Code that there are about 

20,000 home workers in this industry, but upon examination of the 

list of home workers, names were found to be repeated. Checking 

all available sources of information, 10,000 home workers ·would 

undoubtedly be a generous estimate of those on call at ony one 

time. It is particularly i1nportant to point out that the foregoing 

does not mean that 10,000 home workers are employed at any one 

time but are merely "on call." 

There can be no question that home work as carried on in the 

embroidery industry is a source of disaster in any attempts at 

organizing a stable industry. Evidence was offered at the public 

hearings and in the conferences to show that hand workers were 

paid as little as 5¢ an hour and that the highest r ate paid for home 

work by even reputable manufacturers was 12¢ an hour, and these 

rates were for embroidery requiring years of training and the 

utmost skill and artistry. On work requiring less degree of skill 

or in preparation of work of high skill, when work is taken to the 

homes, the children of the household are employed in most of their 

spare hours. The impossibility of any cost accounting control and 

price cutting prevention under such conditions is self-evident. The 

abolishment of home work was therefore decided by an overwhehning majority in the industry, notwithstanding great difficulties in 

readjustment that will be faced by every member of the industry. 

The Code provides that all home work in the industry shall be 

abolished by June 1, 1934, but pending the abolishment it is provided that prices for articles done by home workers shall be determined on the basis of a minimum hourly rate of 35¢. To further 

aid in the process of converting the home worker into a fa ctory 

worker and raising the standard of their status in the industry, it is 

provided that within one month after the effective date of the code 

every employer shall register with the Code Authority the name and 

address of e::tch person who performs home work; and the Code 

Authority is charged with the duty of making investigation and 

holding conferences to determine proper wage scales for the classes 

of workers who shall be taken into the factories. 
408 

Th D put ... lmini trator in hi· final r p rt to m on ail o l 

ha ing found a · h r in : t forth and n l ba ·i.- of all th 

pr <ling in thi matt r: 

I fin l that-

( a) aid od i well <l icrn d t pr m t the r oli ie an<l purpo of Titl I of he ational Indu trial Reco er 1 c.:t in luding 

r m Yal of ob tru tion to th fre flo, of inter ·tat and foreign 

c mm r which tend to climini h the amount ther of and will proid for th g n ral welfar by promoting t1 e rganization of 

indu -try for the purpo e of ooperative action among th trade 

group b inducin · and maintaining unit d a tion of labor and 

mana;em nt und r adequate go ernm ntal anction an l upervision b. T liminatino- unfair competitive practice b promoting the 

full t po -· ·ibl utilization of the present productive a_pacity of 

indu trie ·, b 1 a-roiding undue re~tnction of production ( except as 

ma T b temporarily required) by increa ino- the n. umption of 

indu ·trial and agricultural product through increa in · purcha ing 

p w r b , reducing and relieving unemployment, by improving 

standards of labor and by otherwise rehabilitating indu try. 

(b) The Code as approved complies in all respect with the 

pertin nt provi ion of aid Title of ail A ·t, including without 

limitation ub,:ection (a) of Section 3, Sub ·ect.ion (a) of Section 7, 

and Sub~ection (b) of Section ~O thereof· and that the applicant 

a ·o iation i.· an industrial a ociation truly representati e of the 

afore aid Indu. -try; and that sail as ociation impo ·es no inequitable 

re tri tions on admis ion to membership therein. 

( c) The Code is not d io-ned to and will not permit monopolie 

or monopoli tic practice . 

(cl) The '1ode i not designed to and will not eliminate or oppr s 

small enterprise and will not operate to discriminate against the1n. 

( ) Tho e engaged in other steps of the economic process have 

not been depriYed of the right to be heard prior to approval of aid 

Code. 

I recommend that you approve the Code. 

Respectfully, 

FEBR ARY 10, 1934. 

HUGH s. JOHN ON, 

Adrninistrat01• .. 

• 
CODE OF FAIR COMPETITION FOR THE PLEATING, 

STITCHING, AND BONNAZ AND HAND EMBROIDERY 

INDUSTRY 

ARTICLE I-PURPOSES 

To e:ff ect the policies of Title I of the National Industrial Recovery 

Act, the following provisions constitute a Code of Fair Competition 

for the Pleating, Stitching, and Bonnaz and Hand Embroidery Industry, shall be the· standard of fair competition for such industry 

and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Pleating, t,titching and Bonnaz and Hand Embroidery Industry", as used herein includes the manufacturers engaged in producing pleating; stitching; bonnaz embroidery; hand 

embroidery; crocheting; crochet beading; hand drawing, except handkerchiefs; rhinestone trimming; eyelets, except automatic eyelet ; 

nailheads; bindings and piping; and all other embroidery and stitching accessories to the wearing apparel industry, and the production 

of articles using the above enumerated operations; and such branches 

or subdivisions thereof as may from time to time be included under 

the provisions of this Code. 

2. The term "member of the industry" includes any individual, 

partnership, association, corporation, or other person engaged in the 

industry, either as an employer or on his own behalf. · 

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

in the industry, however compensated, except a member of the 

industry. 

4. The term "employer" as used herein means any employer engaged in the industry. 

5. The terms "President", "Act", and "Administrator" as used 

herein shall mean respectively, the President of the United States1 the National Industrial Recovery Act, and the A cln1inistrator ot 

Title I of said Act. 

ARTICLE III-HOURS 

MAXIMUM HOURS 

1. No employee shall be permitted to work in excess of thirty-five 

( 35) hours in any one week or eight ( 8) hours in any twenty-£ our 

(24) hour period, except as herein otherwise provided. A normal 

workday shall not exceed seven (7) hours; the hours of work shall 

be 8: 45 A.:M. to 4: 45 P.M:., with one (1) hour for lunch. 

HOURS FOR CLERICAL AND OFFICE EMPLOYEES 

2. The maximum hours fixed in the foregoing section shall not 

apply to: 

39358°-376-49-34-2 (409) 
410 

• 

(a) E1nployee in cl ri al or offi work ho shall not b p rmitt d 

to w rk in ,_,..,,.__.,"'v f f r ( O) hour in any one w ek or nine (9) 

hour in any n -four (2 ) hour period. A normal day shall not 

x d eight ( ) hour . (b) Ernplo e x lu iv 1 in a mana<Terial or ex uti e apn ity 

ho re ive m r than 0.00 p r k. 

( ) hippino- lerk~ Port r , and Watchmen who shall not be p rn1itwd to work in xc s of forty ( 40) hours in any one week, nor 

more than eight ( ) hours in any twenty-four (24) hour period, 

except that such employees may be permitted to work forty- ight 

( 4 ) hours per week ·during a maximum of sixteen (16) eeks in 

an cal ndar . ar, provid d that for all such overtime work, u h 

emplo. ees hall b paid at not le s than the hourly rate paid to them 

for the regular forty ( 40) hour week. 

( d) Em ploye s on emergency maintenance or emera ncy r pair 

work involvino- breakdown or protection of life or property, who 

shall not be yermi tted to work 1n exce ·s of forty ( 40) hours with a 

ten percent ( 10%) tolerance. Such excess to be paid for at the rate 

of 11⁄2 overtime. . ( e) Foremen and forewomen who do no producti e ork who .5hall 

be permitted to work forty (40) hours in any one week, with 10% 

tolerance. 

· (f) Designers or outside salesmen. 

STANDARD WEEK 

3. No employee shall be permitted to work more than five (5) days 

in any seven (7) day period, commencing on Monday of each week 

nnd ending on Friday. 

EMPLOYMENT BY SEVERAL EMPLOYERS 

4. No employer shall knowingly engage any employee for any 

time which when totaled with that already performed with another 

employer, or employers, in this industry exceeds the maximum 

permitted herein. 

Ei\-IPLOYER WORKING AS EMPLOYEE 

5. Any employer who does the work of an employ e shall be 

subject to the provisions of this Code as to hours of labor. 

ARTI LE IV-WAGES 

MINIMUM W GE 

1. No employee shall be paid less than at the rate of thirty-five 

cent · (35¢) per hour, except as herein otherwise provided. 

MINIM M W GE FOR LERICAL AND OFFICE EMPLOYEES 

2. o person mploy d in 1 ri al or ffice work shall be paid less 

than fourteen dollars ($14.00) per eek. 
411 

PIECEWORK COMPENSATION-MINIMUM WAGES 

3. This Article establishes a minimum rate of pay which shall 

apply, irrespective of whether an employee is actually compensated 

on a time-rate, piecework, or other basis. 

MINIMUM WAGE RATES BY OCCUPATION 

4. The minimum wage scale for the respective operations In the 

industry shall be as follows : 

For the New York Metropolitan area: 

Per week 

Bonnaz Embroiderers _________ $42. 00 

Tuckers _____________________ 42. 00 

Shirrers --------------------- 25. 00 

Air Tuckers______________ 25. 00 

Hemstitchers____________ 25. 00 

17 W 12 Operators _________ 25.00 

Menders _________________ 25. 00 

Zig-zag operators__________ 18. 00 

Pin-hemmers ____________ 18. 00 

Hand Rollers______________ 18. 00 

Bottom-makers_____________ 18. 00 

German hemstitcher or machine operators_____________ 17. 00 

Per week 

Machine drawers _____________ $17.00 

Stampers____________________ 25. 00 

St,amper's assistant___________ 15. 00 

Spoolers ________________ 15. 00 

Pinners ___________________ 15. 00 

Finishers ________________ 15.00 

Pleater-Pattern makers____ 37. 00 

Pleaters __________________ 35. 00 

Pleater-helper_________ 22. 00 

Machine-setter____________ 22. 00 

Machine-feeder ______________ 15. 00 

Rhinestone & Nailhead setters _______________________ 12. 25 

For all markets other than the New York Metropolitan area, the 

following differentials are established for all the above classifications of $25.00 or above: 

Philadelphia 20%; Boston 25% ; vVestern Markets 30%. 

The minimum wage scale on all classifications i.n the $22.00 

group above: · 

Philadelphia ___________________________________________ $18.00 Boston ______________________________________________ 17.00 

West_ __________________________________________________ 16.00 

The minimum wage scale on all $18.00 and $17.00 groups above: 

Philadelphia ____________________________________________ $15.00 

Boston ________________________________________________ 14.50 

West __________________________ ___ ______________________ 14.00 

The minimum wage scale on all $15.00 group above: 

Philadelphia ____________________________________________ $15.00 

West Boston------------------~------------------------------ 14.00 __________________________________________________ 14.00 

For a.11 markets other than those hereinabove defined and until 

such time as the Code Authority has had ample opportunity to 

investigate and make recommendations to clearly define proper 

market areas, such markets shall pay minimum rates of wages 

equal to those rates paid in the nearest market or area. 

All employees not specifically enumerated herein shall receive 

a. minimum wage rate of 35¢ per hour. 

Within ten days of the constitution of the Code Authority, it 

shall initiate investigations and conferences to determine the fairness and accuracy of the foregoing differentials and classifications, 

and within sixty days thereafter make reco1nmendations ·to the 

Administrator with respect to changes or modifications therein, 

• 
412 

which upon his approval, after uch notice and hearing as he may 

epe ify ·hall be on1e binding pro i ion of this ode. 

An a are ment b tween emplo er and employees made in accordan e with th a ional Indu trial RecoYery A t, may fix other 

wages an l hour than tho e set forth in this ode provided that 

no ·uch agreement may fix maximum hours in exce s of those provided in this Cod , or minimtm1 wag s lower than tho e provide l 

in thi ode. 

one of the provi ion of this rticle hall be con trued or a pp lie l 

in uch mann r that the minimum wage provided herein become 

maximum wage and the duties delegated to the Code Authority 

shall include a report with re pect to the question of whether th 

mini_mum wag provided herein are in fact tending to become 

maximum wages. 

MAINTEN A :rcE OF EXI TING RATE 

5. In no event ·hall compensation for any employee above th 

minimum ,,age rates herein provided be reduced, notwith tanding 

that his hours of labor may have been reduced by this Code. 

OVERTIME 

6. The Code Authority shall make investigations and hold hearings to determine eq nitable rules for overtime in the various market 

and present recommendations to the Administrator, which upon hi 

approval, after such notice and hearing as he may specify, shall 

become binding provisions of this Code. 

HOMEWORK 

7. After June 1, 1934, no employer shall have work done in the 

home of a worker. By May 1, 1934, the Code Authority, after 

proper investigation and conference shall recommend to the Admini trator the wage scale that should be paid to the classes of worker 

taken into the factories from homework, which upon his approYal, 

after such notice and hearing as he may specify, shall become bindin O' provisions of this Code. Prices for articles done by horn - worker , until June 1, 1934, shall be determined on the ba i of a 

n1inimum hourly rate of 35¢. 

"\Vithin one month after the effective date of this Code, every employer shall reai ter with the Code Authority the name and addre . f each person who performs homework for said employer, direc ly 

or indirectly, and no work shall be given by any mpl y r to such 

p r on unless said per on's name i reg1 tered with the Col 

Authority. 

FEMALE EMPLOYEES 

8. Female emplo ees performing sub tantiall the ame work a: 

male employees ·hall re eiYe the same rate of pay as male mploye . 

LEARNERS 

9. The problem of apprentices in the Industry shall be studied by 

the Code Authority and recommen lation. made to the clmini -

• 
413 

trator, which, upon his approval, after such notice and hearing as 

he may specify, hall become binding proYision of thi Code. 

ARTICLE V-GENERAL LABOR PROYISIONS 

CHILD LABOR PROYLcION 

1. No person under sixteen (16) years of age shall be employed in 

the Industry. No person under eighteen (18) years of age shall be 

employed at operations or occupations which are hazardous in nature 

or dangerou to health. 

PROYI ION FROl\1 THE ACT 

2. (a) Employees sha.11 have the right to organize and bargain 

eollectively, through representatives of their mYn 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 ·hoosing, and 

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

minimum rate· of pay, and other conditions of employment approved or prescribed by the Pre ident. 

RECLAS IFICATION OF EMPLOYEES 

3 . .r o employer shall reclassify employees or duties or occupations 

performe l for the purpo e of defeating the provisions of the Act 

or of this Code. 

STANDARD FOR SAFETY AND HEALTH 

4. Every employer shall provide for the safety and health of his 

t:>mployees at the place and during the hours of their employment. 

Standards for safety and health shall be submitted by the Code 

Authority to the Admini. trator within six (6) months after the 

effective date of thi. Code, and when approved by the Administrator, 

shall become a part of this Co le, and be binding upon every member 

thereof. 

STATE LAW 

5. No provisions in thi Cod shall supersede any law within any 

State which impo~es more stringent requirements on employers as 

to a.ge of employees, wages, hours of work, or as to safety, health, or 

sanitary conditions, or in urance, or fire protection, or general working conditions, than are imposed by this Code. 
414 

P TING 

6. All emplo' r hall po t in on pi uou pln a c ible to mplo c 01 ic of thi ode in ,vh le or in part, a may be pro icl d 

by th od uthori y. 

AnTI LE VI-ORGANrz TIO PowER A o DuTIE F TIIE CooE 

THORITY 

OR IZATIO 

1. Cod Authority i her by con tituted to cooperate with the 

Admjni trator in the admini tration of this Code. 

2. The Code Authorit shall con i t of t n ( 10) member to be 

s lect d by the Industry as hereinafter pro-vided and of such additional memb rs, not exceedina three (3), without ,ote, a the dmini trator may appoint to repre ent such group or intere ts or 

such o-overnmental agencie as he 1nay desicrnate. 

One of these three may be appointed by the Administrator on 

recommendation of the Labor Advisory Board tor pre ent Labor. 

The indu try members shall be selected as follow : 

One by the Pleaters, Stitchers, and Embroiderers' s ociation of 

Philadelphia, Pennsylvania; one by the Embroidery Manufacturers' 

Association of Chicago and the Pleaters, Stitchers and Button l\fanufacturers' Association of Chicago; one by the United Embroider , Stitcher , and Allied Trades Association of Cleveland, Ohio; one by 

the Embroiders Association of Massachusetts, Inc.; three by the ational Association of Pleaters Stitchers, and Embroidery 1\1:anufacturer , Inc., of ew York; three by the Bonnaz Embroidery A ociation of rew York. 

3. Each trade or industrial association directly or indirectly participating in the selection or acti, ities of the Cods Authority hall 

(1) impo e no inequitable restrictions on membership, and (2) ubmit to the Administrator true copies of its articles of association 

bylaw , regulations, and any amendments when made thereto, together with such other information as to membership, organizati n 

and activitie a the administrator may deem nee s ary to effc tuate 

the purpose of the Act. 

4. In order that the ode uthority shall at all tim s be truly 

repre ntatiYe of the indu try and in other re~pect comply with the 

provi ·ions of the Act, the Administrator may provitl · 1ch hearincr · a he may d em proper; and thereafter if he shall find that the Code 

Authority i not truly repre entahve or doe not in oiher r pect 

comply with the provi ion of the Act, ma requir an appropriate 

modificabon in th metho l of election of the Code uthority or 

any ub-Code Authority. 

5. 1ember of th inclu try shall be entitled to participate in and 

bar the benefits of the acti, itie of th ode uthority and t 

parti ipate in th . 1 tion f the memb r th r of b a entincr to 

and complying with th r quir ments of thi l and u taining 

their r a onabl hare of the ~ pen es of it admini tration. u h 

r a onable , har of the expen of admini tration hall be determined by the od Authority, subject to review by the Adminis-
415 

trator, on the basis of. volume of business and/or such other factors 

as may be deemed equitable. 

6. Nothing contained in this Code shall constitute the members 

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

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

any act of any other member, officer, agent, or employ~e of the 9?de 

Authority. Nor shall any member of the Code Authority, exerc1s1ng 

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

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

for his own willful misfeasance or nonfeasance. 

PO\YERS AND DUTIES 

7. The Code Authority shall have the followin~ powers and duties 

in addition to those elsewhere provided in this t;ode, subj ect to the 

right of the Administrator, o.n review, to disapprove any action taken 

by the Code Authority. 

(a) To adopt bylaws and rules and regulations for its procedure 

and for the administration and enforcement of the Code, in accordance with the powers herein granted, and to submit the same to the 

Administrator for his approval together with true copies of any 

amendments or additions when made thereto, minutes of meetings 

when held, and such other information as to its activities as the 

Administrator may deem necessary to effect the purposes of the Act. 

(b) To obtain from members of the industry for use of the Code 

Authority, for the Administrator in the administration and enforcement of the Code, and for the information of the President, reports 

based on periods of one, two, or four weeks, or multiples thereof, 

as soon as the necessary readjustment within the industry can be 

made, and to give assistance to n1embers of the industry in i1nproving methods, or in prescribing a uniform system of accounting and 

reporting. All individual reports shall be kept confidential as to 

members of the industry and only general summaries thereof may 

be ,Published. 

( c) To receive complaints of violations of this Code, make investigations thereof, provide hearings thereon, and adjust such complaints, and bring to the attention of the Administrator for prosecution, recommendations, and inforn1ation relative to unadjusted violations; but in no event shall the Code Authority proceed to prosecute 

without notice to and approval by the Administrator. 

( d) To use such trade associations and other agencies a it deems 

proper for the carrying out of any of its activities provided for herein 

and to pay such trade associations and agencies the cost thereof, 

provided that nothing herein shall relieve the Code Authority of its 

duties or responsibilities under this Code and that such trade associations and agencies shall at all times be ubject to and comply with 

the provisions hereof. 

( e) To coordinate the administration of this Code with such other 

codes, if any, as may be related to the industry, or any subdi, ision 

thereof, and to delegate to any other administratiYe authority, with 

the approval of the Administrator, uch power as will promote joint 

and harmonious action upon matters of common interest. 
416 

e:q n 

pr I rti nat pa ment of th 

uth rit and it a tivi i fr m 

GE ER,U, ADMI I TR,\ TIYE PilOYI I 

rnmg 

m1 n f r th 

8. In addition to the information required to be ubmitt 1 to the 

ode uthority as set forth in this ~ rticle there hall be furni h cl to 

goverr.ment agencies such stati tical inf01·mation a the dmini trator may deem nece ary for the purpos recited in Section 3 (a) of 

the ational Inclu. trial Recovery Act. 

9. n interested party hall ha e the right of appeal to the 

Admini trator und r such rules and regulations as he ma pr cribe, 

in re pect to any rule, regulation, or other cour e of action, i ued 

or taken by the Code Authority. 

ARTICLE VII-TRADE PRACTI E R LES 

- GENERAL DEFINITION 

For all purposes of the Code the acts described in this rticle hall 

con titute unfair practices. Any member of the indu try who hall 

directly or indirectly through any officer, employee, agent, or representative, knowingly use, employ, or permit to be mplo} ed, any of 

such unfair practices shall be guilty of a violation of the od . R LE 1. Inaccurate Advertising.- o member of the Industry 

shall u e advertising (whether print d, radio, di play, or of any 

other nature) or other representation which is inaccurate in any 

material particular or in any way misrepre ents any commodity 

(including its use, trade mark, grade, quality, quantity, origin, size, 

sub tance, charact r, nature, fini h, material content, or preparati n) 

or credit erm , values, policies, services, or the nature or form of 

th busines conducted. 

R LE 2. ' Bait" Adve'rtising.-No member of the indu tr shall 

u e aclYerti ino· or selling methods or credit tern1s which hav the 

capa it or t ncl ncy to d ceive or mi lead the cu tomer or pro p ctive 

cu t m r. 

R LE 3. False Billing.- o member of the inclu try hall withhold 

from or in ert in any quotation or in, oic any stat ment that make · it ina ura te in an. material particular. 

R LE 4. Inaccurate Lab ling.-.1 o m mber of the indu tr ' hall 

bran l r mark or pack an mmoclit in any mann r whi h t nd 

to cl c ive or mi 1 ad pur ha r with r pect to th bran l grad 

quality quantity, · · · material. cont nt or pr parati n f 

u ·h ommodi y. · R -LE 5. Inaccurate R ef r nces to 01np titor· tc.- o m mber 

of th indu. tr hall u. a ,. rti ino- or o h r r l r 

r f r: ina · ·urat •l in an mat rial parli ular to an mp tit r r 

their comr 10cliti s, pri e , alu , creclit t rms, I lici , or ~ervic s. 
417 

RULE 6. Selling Below Oost.- :ro member of the indu try shall 

sell any ommodity or service at a price below his own indiYidual 

co t. In calculating aid individual cost for purpo es of this rule, 

when the employer himself doe the work of an employee on production work, hi labor hall be taken a that of such employee. 

RULE 7. Threats of Law Suits.-No member of the indu. try hall 

publi ·h or circularize unju tified or unwarrante l threat of legal 

proceeding .. which tend to or have the effect of harras ino· competitor · or intimidating their cu tomers. 

R-cLE 8. 1 ec1· t R ebates.-No member of the indu try hall e retly 

offer or n1ake any payment or allowance of a rebate refund, commis ·ion credit, un arned discount or exce s allowance, whether in 

the form of money or otherwi e, for the purpo e of influencing a 

ale nor hall a member ecretly extend to any cu tomer any pecial 

·erYi or privilege not openl3 extended to all cu tomer of the 

same cla :. 

R LE 9. , 'elling on Con signment.- o member of the in lu try 

shall hip commoditie on consignment. 

RULE 10. Bribing E mployee .- o member of the indu -tr3 hall 

gi,e, permit to be gi,en, or directly offer to give, an3 thino· of ,alue 

for the purpos of influencing or rewarding the action of any employee agent, or representative of another in relation to the business 

of the employer of uch emplo3 ee, the principal of such agent or the 

repre ented party without the knowle lge of such employer principal or party. This provi ion ·hall not be con trued to prohibit free 

an l general distribution of articles coID1nonly u eel for adYerti ing 

except o far as such articles are actually u ed for commercial bribery as hereinabove defined. 

RULE 11. Interference with Anoth 1'·s Oontracts.-1. o member of 

the industry hall attempt to induce the breach of an exi ting contract between a competitor and his emplo3 ee or cu t01ner or ource of 

._ upply · nor shall any uch member interfere with or ob truct the 

performance of uch contractual duties or services. Nothing in this 

rule shall qualify Section 7 (a) of the National In lustrial Recovery 

Act or ob truct the :free exerci e of the right of collective barrraining therein guaranteed. 

R LE 12. Repudiating One's Oien Oonfract ·.-Xo member of the 

inclu try hall repudiate a contract entered into in good faith when 

the purpo e of uch repudiation i. to create for . uch member an 

unfair price ad ,~antage. 

RuLE 13. > 'ubletting.- The Code Authority " ·ill conduct a tudy 

coYering unfair competition in the indu try arising from the practice kno,,n a · subletting ' and will make recommendation to the 

... dmini -trator with Yie"~ to eliminating uch unfair ompetition. 

R LE 1-±. Employe1'S Wo1·kh g.-Not more than one member of the 

Industry or more than one mpl<;>yer in any hop or factory . ·hall 

be permitted to work on any maclune or at any of the raft. enumerated herein, proYided, howe,·er that the Code Authority ubject to 

the appro,al of the .Admini trator may make exception. in appropr1ate ca es for the purpo e of effecting the Act or thi Code. 

R LE 15. D e. ign and ,_ ample Pfracy.-Xo member hall Yiolate 

any proYi ion a · they hall be adopted by the Code Authority ub-
418 

j t to th appr Yul of the :\.. lmini trator o-oy rning pira y of amJ le and 1 io-n . R LE 1 . T'iolence I ntim,idation 01' Unlawful Coercion.- o 

111 mb r f the indu tr ·hall ommit any of the following unfair 

J ra ti e. : 

(a) f iol nc to per nor property, intimidation, or unlawful oer ·ion by a member of the indu try again t a m mber of the 

in lu tr r. 

(b) Thr at by a mernb r of the indu try to u ·e such iolence: 

intimi lation or unlawul ocrcion. 

(c) on piracy among members of the industry, or among member of the trade and others, to u e or to threaten to use such violence intimidation or unlawful coercion. 

( d) ombining or coo1 erating by a men1ber of the indu try with 

an:rone who i u ing or threatening to u e such violence, intimidation or coercion. 

RuLE 17. Di.scount.-~ o member shall allow other than the recognized term of ca h discount which shall be not greater than two percent ( :.% ) ten days from end of month, and net thereafter. 

ARTICLE VIII-:MomFICATION 

1. Thi Code and all the provisions thereof are expre ly made 

subject to the right of the President, in accordance with the provision of ubsection (b) of Section 10 of the National Industrial RecoYery 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 pecifically, but without limitation, to the right of the President to cancel or modify his approval of this Code or any conditions impo eel by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or change in circumstance such 

modification to be based upon application to the Administrator and 

such notice and hearing as he shall specify, and to become effective 

on apprm-al of the Administrator. 

RTICLE IX-MONOPOLIES, ETC. 

No provi ion of this Code shall be so applied as to permit monopolies or monopoli tic practice or to eliminate, oppre , or di - criminate again t small enterprises. 

ARTICLE X-PRICE LTCRE SES 

'\Vhereas the policy or the Act to increase r al J?Urchasing power 

will be made n1ore difficult of consummation if prices of o-ood and 

serYices increase a rapidly as wages it is recoonized that price increase except uch as may be required to 1neet individual co t should 

be delaye l. But when made such incr a es should, so far as po sible, 

be limited to actual additional increa e in the Iler s co t . 

RTICLE XI-EFFECTIYE D TE 

This ode shall b ome effectiYe on the second ::Monday after date. 

Approved Code. N . _ 76. 

Registry o. - 31-1- 06. 

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