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Full text of "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- 



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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 



-2- 

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. 

8316 



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 Cap acity 

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 



-6- 



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 



-7- 



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^lo T -.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 



-9- 



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 



-10- 

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 



-11- 

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 



-12- 

CHAPTER IV 

PRODUCTION AND DISTRIBUTION 

Valu e 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* Boys 5 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/ 

Boys 5 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 Un ions 

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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