Evidence study

NATIONAL RECOVERY ADMINISTRATION

DIVISION OF REVIEW

EVIDENCE STUDY
NO. 19

OF .

INFANT'S AND CHILDREN'S WEAR INDUSTRY

Prepared by
W. A. GILL

JULY 26, 1935

PRELIMINARY DRAFT
(NOT K)K RELEASE: FOR USE IN DIVISION ONLY)

THE EVIDENCE STUDY SERIES

The EVIDENCE STUDIES were originally planned as a means of gathering
evidence hearing upon various legal issues which arose under the National
Industrial Recovery Act.

These studies have valxie quite aside from the use for which they were
originally intended. Accordingly, they are now made available for confidential
use within the Division of Review, and for inclusion in Code Histories.

The full list of the Evidence Studies is as follows;

1. Automobile Manufacturing Ind. 23.

2. Boot and Shoe Mfg. Ind. 24.

3. Bottled Soft Drink Ind. 25.

4. Builders' Supplies Ind. 26.

5. Chemical Mfg. Ind. 27.

6. Cigar Mfg. Industry 28.

7. Construction Industry 29.

8. Cotton Garment industry 30.

9. Dress Mfg. Ind. 31.

10. Electrical Contracting Ind. 32.

11. Electrical Mfg. Ind. 33.

12. Fab. Metal prod, Mfg., etc. 34.

13. Fishery Industry 35.

14. Furniture Mfg. Ind. 36.

15. General Contractors Ind. 37.

16. Graphic Arts Ind. 38.

17. Gray Iron Foundry Ind. 39.

18. Hosiery Ind. 40.

19. Infant's & Children's Wear Ind. 41.

20. Iron and Steel Ind. 42.

21. Leather 43.

22. Lumber & Timber Prod. Ind.

Mason Contractors Industry

Men's Clothing Industry

Motion Picture Industry

Motor Bus Mfg. Industry (Dropped)

Needlework Ind. of Puerto Rico

Painting ?■. paperhanging & Decorating

Photo Engraving Industry

Plumbing Contracting Industry

Retail Food (See No. 42)

Retail Lumber Industry

Retail Solid Fuel (Dropped)

Retail Trade Industry

Rubber Mfg. Ind.

Rubber Tire Mfg. Ind.

Silk Textile Ind.

Structural Clay Products Ind.

Throwing Industry

Trucking Industry

Waste Materials Ind.

Wholesale & Retail Food Ind. (See No.

Wholesale Fresh Fruit & Veg.

In addition to the studies brought to completion, certain materials have
been assembled for other industries. These MATERIALS are included in the series
and are also made available for confidential use within the Division of Review
and for inclusion in Code Histories, as follows;

44. Wool Textile Industry

45. Automotive Parts & Equip. Ind.

46. Baking Industry

47. Canning Industry

48. Coat and Suit Ind.

49.
50.
51.
52.
53.

Household Goods & Storage, etc. (Drop-
Motor Vehicle Retailing Trade Ind, ped)
Retail Tire & Battery Trade Ind.
Ship & Boat Bldg. & Repairing Ind.
Wholesaling or Distributing Trad3

L. C. Marshall
Director, Division of Review

COKEEECS

Page
Foreword 1

CHAPTER I - DESCRIPTION AND SCOPE 2

History

Number of Plants 2

dumber of Concerns 4

Capital Investment 4

Machinery and Productive Capacity 4

Competing Products 5

CHAPTER II - LABOR STATISTICS 6

Employment S

Wage s 8

CHAPTER III - MAI TRIALS: RAW AND SElil -PROCESSED 11

Materials and Their Sources .11

CHAPTER IV - PRODUCTION AND DISTRIBUTION 12

Value of Product 12

Geographical Distribution 12

Advertising Media 16

CHAPTER V - TRADE PRACTICES 17

practices Considered Unfair by Manufacturers 17

Unfair Practices Still Present in the Industry 17

Dissemination of Practices Throughout the Industry 17

CHAPTER VI - GENERAL INFORMATION 18

Trade Associations and Trade Unions 18

The Industry Under the Code 19

Foreign Competition 19

List of Experts 19

-oOo-

8316 -i~

TABLES

Page
TABLE I - NUMBER OF PLANTS, 1934 3

TABLE II - MEMBERS OF THE INDUSTRY CLASSIFIED
ACCORDING TO NUMBER OF PLANTS, 1929,
1931, 1933, AID 1924 4

TABLE III - ESTIMATED CAPITAL INVESTMENT IN THE

INDUSTRY, 1929, 1931, 1933, AND 1934 4

TABLE IV - ESTIMATED AVERAGE NUMBER OF EMPLOYEES.

BY PRINCIPAL STATES, 1934 6

TABLE V - INDEX OF FACTORY EMPLOYMENT, PAYROLLS

AND MAN-HOURS 1933, AND 1934 7

TABLE VI - AVERAGE HOURLY UAGE RATES, AVERAGE
WEEKLY WAGES AND AVERAGE HOURS PER
WEEK 9

TABLE VII - TOTAL ANNUAL WAGES, 3Y STATES, 1934 10

TABLE VIII - TOTAL VALUE OF PRODUCTION, BY

PRODUCT GROUPS 1

r>

TABLE IX - VALUE OF PRODUCTION FOR PRODUCT
CROUPS, BY PRINCIPAL PRODUCING
STATES, 1929 14

TABLE X - VALUE OF PRODUCTION FOR PRODUCT
GROUPS, BY PRINCIPAL PRODUCING
STATES, 1931 ■ i5

TABLE XI - V0LU1E AND VALUE OF PRODUCTS PRODUCED,

BY PRINCIPAL STATES, 1933 AND 1934 16

-oOo-

8316 -ii-

-1-

TKE IEFAEDS' AIT) CHILDREN'S TEAR IiTlUSTRY
Foreword

Published government data regarding the Infants' and Children's
Wear Industry are extremely me; ~re. This is due largely to the recent
growth of the Industry and to the fact that Federal Bureaus such as the
Bureau of the Census and the Bureau of Labor Statistics have not rec-
ognized it as a separate Industry.

Complete Census data pertainin: to the Industry as defined "by the
Code are not separately reported, but selected groups of products have
been combined from the Census reports on the "Ken's Clothing" and the
"Women's Clothing" Industries to obtain total value of production figures
which are roughly - but not exactly - comparable with the Industry as
defined by the Code. For other topics upon which information is called
for by the outline, Census data are not sufficiently broken down to al-
low of recombination to r;'ive totals comparable with the scope of the Code,

Special Bureau of Labor Statistics tabulations covering labor con-
ditions in the Industry as defined by the Code, for the years 1933 and
1934, are presented in Chapter II.

Much of the information called for, however, could be obtained only
from the Records of the Code Authority, and in such cases these have
consequently been used.

8316

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CHAPTER I
DESCRIPTION AND SCOPE

History

According to Mr. Max Zuckerman, for many years associated with the In-
dustry and now President of the Trade Association, as recently as 1915 there
was no Infants' and Children's Wear Industry worthy of being designated as
an Industry, for there were few out and out manufacturers of infants' and
children's wear.

Garments for infants and children were usually made as secondary prod-
ucts by manufacturers of adult apparel. This activity not only provided a
profitable use for remnants and short ends that were left from the manufac-
ture of the primary products but also enabled the manufacturer to fill in
the period between the regular seasons for producing adult clothing.

During the early years of the Industry the big problem was that of
creating a market for its products. Department stores such as Best and
Company were the first to establish regular departments for the display and
sale of this merchandise. This market was satisfactory in that these stores
catered to a clientele that could afford to -nay any price so long as the
goods offered pleased them, but the manufacturers who had begun to special-
ize in infants' and children's wear soon realized that if the Industry was
to expand it was necessary to reach the "masses" of the people.

The tremendous number of patterns for infants' and children's clothes
that were being sold by such firms as Butterfield and McCall attests the
fact that the making of these clothes in the home was the custom. To in-
duce the mother to buy ready-made clothes for her children, the merchandise
not only had to be -oriced at a level that she could afford to pay but also
had to be 6-isplayed in a prominent and attractive manner. With this objec-
tive in view interested persons, particularly one George F. Sarnshaw, set
about promoting and selling the idea of separate departments for infants'
and children's wear to the department stores of the country. Through the
successful efforts of these men the habit of buying rather than making in-
fants' and children's clothes became the general rule. As a result of this
growth of the market the Industry has grown from approximately 40 firms in
1915 to 1,363 in 1934.

To maintain and expand this market department stores are constantly
featuring infants' and children's wear to attract mothers. The present pro-
motion method by manufacturers is to secure the names of prominent children
such as Shirley Temple, Freddy Bartholemew, and the Dionne Quintuplets as
brand names for children's clothes.

Number of Plants

According to the records of the Infants' and Children's Wear Code Authori-
ty there were 1,434 plants manufacturing this product in 1934. Geographical-
ly the Industry is highly concentrated in Hew York, New Jersey, and Pennsyl-
vania with 798, 207, and 186 slants respectively in these states. Table I
shows the number of plants in each state.

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TABLE I

NUMBER OF PLANTS, 1934
BY STATES

State Number of Plants

United States Total 1,434

Alabama 1

California 48

Colorado 3

Connecticut 22

Delaware 6

District of Columbia 1

Illinois 31

Indiana 9

Kentucky 1

Louisiana 3

Maine 1

Maryland 8

Massachusetts 39

Michigan 5

Minnesota 6

Mississippi 2

Missouri 10

Netraska 1

New Jersey 207

New York 798

Ohio 2

Oklahoma 1

Oregon 1

Pennsylvania 186

Rhode Island 2

South Carolina 1

Tennessee 2

Tenas 28

Vermont 1

Virginia 5

Washington 2

Wisconsin 1

Source: Code Authority Records.

8316

Number of Concerns

The Code Authority records also show these plants to be owned by 1,363
firms. Generally speaking, each firm operated only one plant, 1,316 of the
firms being of this nature. Table II shows the members of the Indus try
classified according to number of plants in 1934, and also Code Authority
estimates as to total number of firms and total number of plants for the
years 1929, 1931, and 1933.

TABLE II

MEMBERS OF THE INDUSTRY CLASSIFIED ACCORDING TO
NUMBER OF PLANTS, 1929, 1931, 1933, AND 1934

Number of Plants

Total Number of Firms
Total Number of Plants

Number of Firms with Specified
Number of Plants

1929

1931

193c

1934

1,420 1,395
1,455 1,415

1,350 1,363
1,400 1,434

One Plant Only
Two plants
Three Plants
Four Plants
Five Plants

1,316

36

5

4

3

Source: 1934 data from Code Authority Records; other data are Code Authority
estimates.

Capital Investment

Total capital investment in the Industry in 1934 is estimated by the
Code Authority at $33,000,000. Similar estimates of capital investment for
some prior years are shown in Table III.

TABLE III

ESTIIA.TED CAPITAL INVESTMENT IN THE INDUSTRY
1929, 1931, 1933 AND 1934

Year

Amount of Capital Investment

1929
1931
1933

1934

$37,000,000
32,000,000
33,000,000
33,000,000

Source: Code Authority Estimates,

8316

-5~

Machinery g.nd Productive Capacity

It is extremely difficult even to estimate reliably the value of machine
in this Industry. Indications are that possibly 82,000,000 represents the
initial cost of machinery now in use, and that abov.t $500,000 is spent annual"
by the Industry on replacements and renewals.

Evidence regarding the proportion of the available equipment in use is
extremely scanty. In the peak season probably every available machine is man-
ned, while in the off season only three quarters or perhaps less of the equip-
ment nay be in use.

Comnetinf; Products

The products of the Infants' and Children's Wear Code are in direct com-
petition with some of those manufactured under the Coat and Suit and Knitted
Outerwear Codes. According to the Code Authority of the Infants' and Chil-
dren's T.'ear Industry, the value of these competitive products was $45,000,000
and $35,000,000 in 1933 and 1934 respectively.

8316

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CHAPTER II
LABOR STATISTICS

Enrolovncnt

Total average employment for 1934 amounted to 43,964 workers, according
to a Code Authority estimates based on its records covering 80 per cent of
the concerns in the Industry. Her? York State shows the highest concentration
with 19,146 workers. Pennsylvania is also an important employment center with
10,186 workers. Table IV shows employment in other states for 1934.

A slight improvement in employment under the Code, and a greater gain in
payrolls are shown in Table V. The reduction in average hours per week is
reflected in a lower index of mrn-hoxi^s for 1934,

TAILS IV

ESTIMATED AVEFAGE NUMBER 01 EMPLOYEES,
BY PRINCIPAL STATES, 1934 a/

Stat<

lumber of Em~:>lovees

United States Total

California
Connecticut
Maryland
Massachusetts

New Jersey
New York
Pennsylvania
Rhode Island
Texas
Virginia

Other States

43,964

544

1,026

654

1,362

7,136

19,146

10,186

680

670

472

20,088

Source: Code Authority Records,,

a/ Based on returns from 80 per cent of the concerns in the Industry,

8316

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TABLE V

INDEX OP FACTORY EMPLOYMENT, PAYROLLS AIJD MAN-HOURS
1933 and 1934 a/
(1953 « 100)

Year and

Month b/

Enploym nt

1933

January

38.3

February

105.3

March

104.4

April

103.6

May

110.4

June

106.4

July-

34.1

August

110.9

Sep tenter

112.0

October

103.3

November

67.8

December

73.6

c/

Payrolls c/

Man -Hours d/

111.

8

133.

6

84,

,8

108.

,0

114.

,o

106.

,5

90.

,0

109.

,2

109.

,1

94.

,9

71.

o

1 ^

65,

,8

83.6

100.2

83.3

95.3

103.3

104.4

89.8

119.7

130.6

115.5

89.1

75.1

Average

100.0

100.0

100.0

1934

January

90.4

February

104.3

March

106.3

April

111.1

May

112.2

June

104.0

July

97.3

August

104.2

September

95.3

October

102.5

No v ember

99.5

December

93.9

Average

101.3

102.5
120.2
126.6
134. 8
140.4
124.4
102.0
123.3
109.5
123.4
113.1
118.1

120.4

74.6
96.7
96.5
102.1
108.1
92.9
75.3
31.2
71.7
82.3
81.4
81.4

37.9

Source: Unpublished data secured by the Dureau of Labor Statistics in
cooperation vrith the Division of Research and Planning, 1IRA.

a/ Reporting establishments considered to be alnost completely covered
by the Infants' and Children's ¥ear Code.

b/ Figures reported were for the inayroll period nearest the 15th of the
month.

c_/ Based on a representative sample covering an average of 23 establish-
ments and about 2,000 empl03,-ees in 1955. The sample was considerably
larger in 1934.

d/ Computed: Inde:: of Eu^loT-.ient times average hours 'oer week reduced
to 1933 « 100.

5316

-8-

Wa---;es

Reliable data regarding earnings of employees prior to 1933 are not
available. Mr. Maxwell Copeloff , Chairman of the Code Authority, Mr, Max
Zuckerman, President of the United Infants' and Children's Wea.r Association
and Mr. Charles Bolder, all of whom have "been intimately associated with
the Industry for a number of years, agree in stating that in the very depths
of the depression, immediately prior to the enactment of the ITational Indus-
trial Recovery Act, average wages were in the neighborhood of 20 cents per
hour and $8.00 per week. Wages in the latter months of 1954 according to
Code Authority data were slightly over 43 cents per hour for a work-week
somewhat less than 40 hours per week.

Average hourly wage rates, average weekly earnings and average hours
per week by months for 1953 and 1934 are shown in Table VI. Attention is
called to the increase in average hourly wage rates and the decrease in the
average hours per week after the approval of the Code in March 1934. 'The
increase in the hourly wage rate is reflected in the average weekly earnings
in the Industry.

According to Code Authority records, based on a return from 80 per
cent of the concerns, the total annual payroll for 1934 amounted to
$19,415,965. Again, Hew York and Pennsylvania were the important areas
with $9,340,448 and $2,748,560 respectively. Table VII shows distribution
of annual wages by states for 1934.

8316

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TA3LE VI

AVERAGE HOURLY WAGE RATES, AVERAGE WEEKLY
WAGES AND AVERAGE HOURS PER WEEK a/

Average Hourly

Average Weekly

Year and

Wage Rate in

Wage in

Average Hours

Month b/

Cents c/

Dollars d/

Pe

r Week cy

1933

January

16.9

l^e r£~>

48.6

February

19.1

12.08

48.7

March

38,7

10.63

31.2

April

25.2

11.55

40.0

May

28.2

12.33

39.8

June

24,7

12.33

38.4

July

25.3

12,03

36,7

August

28.2

15,54

37.8

September

36,4

14,64

37.4

October

37,6

14.06

35.3

November

44.4

12,68

31.4

December

39,4

12.83

34.3

Average

30.3

12.56

38.3

January

41.2

February

37.4

March

37.7

April

38.9

May

39.1

June

40,1

July

41,0

August

41.0

September

45.5

October

46.1

November

41,3

December

41.9

Average

40.9

14.22
13.61
14. SI
14.42
14.85
14.26
12.45
14,13
13.39
14.13
13o36
14.33

13.96

31.7
35.6
34.7
35.3
37.0
34.3
29.9
33.6
28.7
30.8
31.4
33.3

33.0

Source: Unpublished data secured by the Bureau of Labor Statistics in co-
operation vrith the Division of Research and Planning, NRA.

a/ Reporting establishments considered to be almost completely covered by
Infants' and Children's Wear Code.

b/ Figures reported were for -nayroll period nearest the 15th of the month.

c/ Based upon a representative samnle covering an average of 6 establish-
ments and nearly 450 employees in 1933. The sample was much larger in
1934.

d/ Based urjon a representative sanrole covering an average of 23 establish-
ments and about 2,000 employees in 1933. The sample was considerably
larger in 1934.

8316

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TABLE VII
TOTAL ANNUAL WAG3G, BY STATES, 1934

State 1934

United States Total $19,415,966

California 219,322

Connecticut 391,570

Delaware 37,234

Illinois 107,144

Indiana 63,468

Kentucky 67,040

Louisiana 27,288

Maine 8,532

Maryland 254,946

Massachusetts 785,008

Michigan 66,044

Minnesota 55,974

Mississippi 23,484

Missouri" ' 138,638

Hew Jersey 2,748,560

New York 9.340,448

Ohio 47,280

Oklahoma 356

Pennsylvania 4,285,554

Hhode Island 272,412

South Carolina 51,026

Tennessee 194

Texas 211, C24

Vermont 41 , 544

Virginia 162,634

Washington 4.534

Wisconsin 4,658

Source: Code Authority Records "based on returns from 80 per cent of the
Industry.

8316

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CHAPTER III
MATERIALS: BAT, }\1TB SEMI-PROCESSED

Materials and Their Sources

Exact statistical evidence is unobtainable on many important chases
of the Infants' and Children's Wear Industry. The following statements
are based on estimates prepared by the Chairman of the Code Authority,
after consultation with the Secretary of the Trade Association and other
officials of the Code Authority-.

Cloth is the principal material used in the manufacture of infants'
and children's wear. Cotton cloth is the most important as it constitutes
about 50 per cent of the total cloth consumption of the Industry. The
various other types of material represent about the following proportion
of the total amount of cloth consumed, rayon 25 per cent, wool 13 per cent,
silk 10 per cent, end linen 2 per cent.

The Cotton from which cotton cloth is manufactured is grown in the
Southern States. It is processed into cloth in cotton mills. The South
Atlantic States of Georgia, Alabama, and North and South Carolina, and the
New England States of Massachusetts and New Hampshire together with New
Jersey and Pennsylvania are important locations of such mills.

Cellulose fibre which is found rather widely distributed geographically
becaxise of its many forms such as wood, cotton lintcrs etc. is the basic
raw material used in the preparation of rayon yarn. New Jersey, Pennsyl-
vania, Delaware, Maryland, together with many of the cotton textile
centers mentioned above are important rayon-weaving areas.

8316

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CHAPTER IV

PRODUCTION AND DISTRIBUTION

Value of Product

Table VIII compiled from Census of Manufactures data, shows production
of important product r, of infants' and children's wear for the years 1929, IS
and 1933. For the classifications shown production had declined from a, tote
value of $220,680,000 in 1929 to $92,942,000 in 1933. Children's dresses ar
apparently the most important item in the Industry, $53,154,000 worth having
been produced in 1929* Boys5 play suits and children's coats were next in i
portance amounting to over $34,500,000 each for that year. Later years show
no important shifts in the relative importance of products produced in this
Industry.

Geographical Distribution

Table IX and X show breakdowns for principal states of production by in
portant items for the years 1929 and 1931. Noteworthy is the concentration
production in the states of New York and Pennsylvania.

TABLE VIII

TOTAL VALUE OF PRODUCTION, BY PRODUCT GROUPS
(in Thousands)

Product Group 1929 1931 1933

Total a/

Boys' suits

Boys' play suits

Children's dresses

Children's coats

Children's suits

Children's raincoats

Other outerwear for children

Underwear and nightwear
for children

Infants' clothing f/

Boys5 blouses

Juniors' shirts

Boys' separate coats

Boys' separate pants .and knickers

Boys' overcoats and reefers

Boys' separate vests

Source: Census of Manufactures "Hen's Clothing," and "Women's Clothing," In-
cludes only establishments whose products are valued at $5,000 or
more annually. The groups of items listed in this table are somewh?
more inclusive than the Code definition.

a/ Totals cannot be compared because of inconsistences as explained in folio
ing notes.

(Cont'd on following page)

8316

$220,681

$152,229

$92,942

34,834

21,720

19,902 b/

15,852

10,498

si

53,154

37,588

29,406

34,548

20,288

13,231

11,946

11,022

3,695

487

c/

5,628 d/

2,281

sf

10,380

7,015

5,005 e/

16,178

11,945

7,649

7,807

4,738

sf

1,668

1,766

sl

sf

795

800 g/

16,028

15,442

9,899 h/

12,648

6,488

3,355 sf

£/

156

c/

-13-
TABLE VIII (Cont'd)

b/ Includes cotton and other than cotton hoys' suits and is not strictly coi>.

parahle with earlier years.
c/ Hot available,
d/ Includes children's raincoats

ej Includes underwear only, as nightwear was not given,
f/ Combination of "Outerwear for Infants'" and "Infants' Underwear sxid Night"

wear. "
g/ Other than cotton, only, and not comparable with earlier years,
h/ Hot comparable with earlier years.

S316

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Al though not strictly conparable with the above figures, Table XI, com-
■oiled "by the Code Authority, gives an excellent indication of the geographical
distribution of production in the Industry. It also shows the improvement in
the business since the adoption of a Code. Total value of nroduction in 1933
amounted to $64,151,301 and sales for 1934 amounted to $73,7 29,462.

TABLE XI

VOLUME AED VALUE OE PRODUCTS PRODUCED,
3Y PRINCIPAL STATES, 1935 AND 1934

1933

193<

1_

State

Volume

Value

Volume a/

Value b/

(Units)

(Dollars)

(Units)

(Dollars)

U. S. Total

106,26^,886

64,151,801

104,474,224

73,729,462

California

479,216

490,325

442,821

610,729

Connecticut

864,144

324,663

674,214

278,393

Illinois

2,549,703

1,602,939

1,134,111

889,808

Indiana

114,546

560,269

286,155

390,589

Maryland

512,245

622,410

519,438

713,188

Massachusetts

1,190,457

836,443

1,043,775

912,574

Michigan

345,129

124,829

307,038

137,483

Minnesota

444,684

226,572

363,935

284,896

Mississippi

135,150

51,302

136,268

54,183

Missouri

580,490

663,280

407,752

637,254

New Jersey

6,732,606

2,664,535

6,043,401

3,065,848

New York

72,042,078

45,655,479

72,946,389

53,344,727

Ohio

167,371

176,037

120,213

184,678

Pennsylvania

17,283,649

9,043,681

18,480,056

11,139,755

South Carolina

1,8 3-,, 7 64

183,969

578,678

187,286

Other States

99,649

113,878

30,454

134,385

Source: Code Authority Records.

a/ Units produced January to April 30, 1934; June to December 31, 1934.
b/ Sales reported from manufacturers for full year.

Advertising Media

Infants' and Children's Wear is advertised through the trade journals,
by direct mail advertising, and through the consumer press such as magazines
and newspapers. There are two magazines devoted to the product, Earnshaw' s
Infants' and Children's and Girls' Wear, and Infants' and Children's Review,
that carry on considerable trade promotion worh. In addition thereto, con-
siderable promotional activity is achieved by trade-naming products after chi
movie stars and then -ohotographing and extensively advertising these articles

8316

-17-

CHAPTER V

TRADE PRACTICES

Practices Considered Unfair "by Manufacturer a

Prior to the Code the following practices were considered to "be -un-
fair by manufacturers: granting of large and what manufacturers consider-
ed excess discounts, unfair cajicellations by buyers, memorandum sales, and
the granting of advertising allowances.

The Code Authority's Chairman has stated that many of these practices
were fostered by powerful buying groups who exerted undue pressure for
concessions upon the small manufacturers who were unable to resist such
pressure. The Code served to bolster up the small men and aided them in
resisting these demands.

Unfair Practices Still Present in the Industry

Because of difficulties encountered in enforcement, since the retail-
ers saw nothing inherently wrong or unfair in the practices, the returning
of merchandise, making deductions for express charges, and exerting pressure
for advertising allowances, still existed under the Code.

Dissemination of Practices Throughout the Industry

It is believed by the Chairman of the Code Authority that unfair trade
practices became nationwide through the influence of large resident buyers
in New York City. Since these buyers represent stores throughout the
country, any concession they demand and obtain, e.g., advertising allow-
ances, deduction for express charges, or any evasive practice that results
in a Trice concession, tends to become the general practice.

8316

-15-
CH&PTSE VI

GENERAL INFORMATION

Trade Associations and Trade Unions

The following resume of a statement prepared "by Mr. Zucherman and nr.
Baker of the association gives a history of trade associations and -unions
in the Industry,

A trade association of infants' and children's wear manufacturers was
first formed in 1918 to establish better relations between manufacturers
and retailers. It was known as the United Infants', Children's and Junior
Wear League of America. It continued in existance until March of 1933,
at which time the present association known as United Children's Wear
Association was formed. The reason for the change was twofold: first,
because it was found necessary to divorce from affiliation junior wear
manufacturers; secondly, because of the fact that the whole association
was allied in financial interests with other groups and the infants' and
children's wear manufacturers felt that they would like to operate by them-
selves.

The present association has a membership of about 540 manufacturers
located in all parts of the country. In point of dollar volume it represents
in excess of 85 per cent of the total volume of business of the Infants'
and Children's Wear Industry,-

The association is divided into two parts; one deals with trade
activities, promotions, and the interchange of business ideas; the other
branch is concerned with the negotiating of collective agreements with
labor. It is to be definitely borne in mind that manufacturers do not
have to allow unionization within their plants in order to become members.
Less than 50 per cent of the membership of the association are subject to
collective agreements. The remaining firms operate open shops.

Other associations in the Industry are the Children's Dress Contractors
Association and the Infants' and Children's Novelty Association. The former
is an association located with its principal offices in Hew York. Its
membership comprises contractors on children's dresses and sports wear
located in the States of New York, New Jersey, Connecticut and some parts
of Pennsylvania. This association has no direct affiliation or connection
with the association of manufacturers. Its membership comprises about
140 contractors. The latter is located in New York and represents con-
tractors of snow suits, ski suits and novelty items. Its membership
is strictly local, and comprises about 55 contractors.

In 1916 a collective agreement existed between Children's Dress Manu-
facturers and the International Ladies' Garment Workers' Union. This
collective agreement was dissolved two years later. There was no contractual
relationship, in the form of a collective agreement existing between the
Industry and labor until September, 1933, at which time an agreement was
entered into on behalf of 100 manufacturers of children's dresses and
leggings with the International Ladies Garment Workers' Union, Local 91.
This agreement which is still in force and effect terminates September 25,
1935.

8.716

-19-

In addition, there is a collective agreement with the International
Ladies Garment Workers' Union on "behalf of Infants' and Children's Cos.t
Manufacturers. This agreement which expired June 1, 1935 covered about
70 firms. There is also a collective agreement "between 24 members of the
Boya' Wash Suit Manufacturers and Amalgamated Clothing Workers Union,
which expires on December 31, 1935. There are any number of firms who
have independent agreements with labor, not only the International and
the Amalgamated, but also with the United Garment Workers and with the
Millinery Workers Union. These are strictly independent contracts. It
is estimated that less than 40 per cent of the firms in this Industry are
operating under Union conditions.

The Industry Under the Code

Because the Code definitely assured members of the Industry of a
labor cost floor, it instilled confidence against destructive competition
through price cutting.

Foreicn Competition

Highly decorated and hand embroidered articles are produced consider-
ably cheaper in China, Puerto Rico, and the Philippines than in this
country. Thus the manufacture of this type of article has practically
been eliminated in this country. Although the importation of other types
of products is at present negligible the aforementioned places are important
potential competitors for production of the goods.

The style factor not being so important in infants' and children's
apparel as in adults apparel, manufacturers honestly believe and fear that
any substantial reduction in labor costs in a given area, because of the
price cutting which would folio-', would rapidly bring wage cuts to other
portions of the Industry.

List of Exparts

The following persons are familiar with conditions in the Infants'
and Children's Weat Industry:

George F. Earnshaw,

Editor of Infants' and Children's Wear

Albert Freed,

Freitaz Manufacturing Company,

1333 Broadway, New York City, H. Y.

Sidney Rosenaw,

Rosenaw Brothers,

1350 Broadway, Hew York City, H. Y.

J. Smolen

561 Broadway, Hew York City, H. Y.

L. J. Goldberger,

L. Gold and Company,

1359 Broadway, Hew York City, H. Y.

8316#

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