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BOSTON PUBLIC LIBRARY 



^3^1. lA'^^ 



3 9999 06317 374 2 



OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 
DIVISION OF REVIEW 

jj. R. A. RECORDS SECTION 
T,AT,rnviirwT OF COMMEEOEl 

WAGES ABOVE THE MINIMUM IN THE MEN'S NECKWEAR INDUSTRY 

By 
William Lawson 

(A Section of Part C: Control of Wages) 



C-^ 



WORK MATERIALS NO. 45 T'^'*''^ C Sec 
THE LABOR PROGRAM UNDER THE NIRA 



Work Materials No. 45 falls into the following parts: 



Part A 
Part B 
Part C 
Part D 
Part E 



Introduction 

Control of Hours and Reemployment 

Control of Wages 

Control of Other Conditions of Employment 

Section 7(a) of the Recovery Act 



LABOR STUDIES SECTION 
MARCH, 1936 



0P7ICE OF lyiTIOrAL IfflCOV^HY iS-IIlTISTHilTIOlT 
Division 0? 33VISW 



rAGES AIBOVE T^Sl MIIIIMI HI TIIE ivES'S IJECKlTEim IITDUSTHY 



By 
Williain Lawson 



LiSO?. STUDIES SECTIOil 

:;ij\2c::, i936 



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U. S. UMMV OP OQNQIIiSS 

NOV 301950 



]? ": :? ■" -, :: 

Tills st^ldy of 'nT,?.;j,'es A-Jove t"ie ^iiniinvin in the "len's JTeclD,7ear In^us?- 
tr:/" \7r.s -Tre^oared 07 "ir. . "7illir, .i L'JA"son of tlie La'oor SUidies Section, Mr. 
Solomon Darliin in chr.rge. It is an examination of tlie e:~oerience of one 
industry with a, classified schediile of vR.ges for eimiloyees receiving more 
than t:ie minira-om vrage. The code for this industry -provided a piece-rate 
s'/stea -j^overning the operations of the industry. The analysis of the 
effect of this provision on wages and on the nroblens of administration, 
contriovites to our "onders tending of administrati^ve eOTerience und.er IGA. 
It will of coiirse he a-'Toreci.^ted thj.t the findings of the author are not 
official utter3.nces. 

This stud^/ is one of a series "begun hy the Lahor Stud.ies Section 
to analyze the effects of varioiis t.3~pes of clauses governing wages aoove 
the i-iiniiTium. Perhaps the most extreme of these clauses was the "Diece- 
rc,te scfle which- is studied, in this re'nort. The other studies were 
concerned with outstand.ing cases of indiistries with cod^es -orotecting 
wages ahove the ninimuir. 'oy means of classified occuo -tional wages or 
occupational hasing -noints, or the so-c-\lled eouita^ole adjiistment -:irovis- 
ions. These other studies, hov/ever, could not he comiTleted oecause of 
limit' tion of personnel and of field ■'.■orlc. 

Aclmowled.gment is mfide to hr. Ahraham Sholi3,n for his assistance 
in -ore--)r.ring an early dra.gt of this re^oort. 

At the hack of this ve^ior'^t will "be found a, hrief statement of the 
stuc'ies undertaken hy the Division of F.eview. 

L. C. i.iarsliall 
Director, Jivision of Review 
Max-eh 33, Wm 
9357 -i- 



TJfflLE OF CG1"T.S:"TS 



SlTilliBY or FIIIDIITGS 1 

CI-LAPTES I. Tlie Industr;/- r.nc. tlie Code Provisions 4 

A. Tlie Industiy 4 

B. The Piece-ITorV Syst-^n in Union Shops in 

ile\7 York Cit;/ 4 

C. Area IZ-'i^'e Dif f erentipls 8 

D. The Code ller^otiations 26 

E. The Codf Provisions 31 

P. Deficiencies of the C'^de Provisions 34 

CHAPTER II. Errperiences ix^.der tho Code 40 

A. The Effects of the Code on i one" Eo.rnings 40 

3, The Effects of the Cede on Wag'= Diff erentio.ls 4-3 

C, The Pieco-Work T7a.ge Pap-ient Systeu 50 

D, Conflict over "Ci.ittin;^" Croerrtirns 56 

E, Evp^sion of Piecf=-'.7orh- and Hoiirly "late 

Ilaintenance Provision 57 

CHAPTEP: III. An Ap'i'ai sal 59 

APPEhDIX A 63 

LIST or STATISTICAL TABLES 

TABLE I. Uigration of 'iJorkeis in th° hen's hecki-rear 

Industry in the various States "betrreen 

1929 and 19bl 5 

TABLE II. T'-tal Piece-'Jnrk p-tes Pai^. in Pive Aro-s 

of the Unitod St-^tes in hay 1933 and 

AcLtj-ast 1954 "by T'-pes of Ties 10 

TABLE III. Toto.l Piece-jork Pa.tfS Paid in Tive Areas 

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of t^ie UniteG. St.',te.: i;,i I'--'- 19co n;.w. 

A:J.{70.at 19o4- loi- Pour I"-' be of Tie a il::- 

\^reGLfi'" As A Percer..tn,;^e of l:-^-•- "nrlc 

Cit- Rates ' 11 

TABLE lY. Differential in TotoJ Lr.'o'-'r Pioce-TJork 
Rates 3etvreen the ile-T Yor?.: Cit]' Area 
and Other Areps in the United Sto.tes 
in Upy 1953 anc; A .grast 1934 13 

TABLE V, Piece-TJork R.ates anC. Productivit-r 'oy Oper- 
ations for 'land-JIade Hevined Ties in 
Five Ar^as of the United States in hay 
1953 an.; Aagust 1954- . . .' 15 

TABLJi YI. Pieco-'Jcrl: R-tes in Fi^-e Are-s of the United 
States in Uaj'- 1953 and Aagust 1934 for 
Pive Operations o;,i M-nd-L'ade heraned Ties 
E:\presse6. as ?r-rcentagos '-f llevj York 
Cit- Rates 16 

TABLE YII, Lahor Proo-uctivit;^ in Pive Areac of the 
United States in A^u^-LSt 1954- for Pour 
T;'pes of Ties Erroressed 1)7 the hur-iher of 
Dozens of Ties Produced Per lour , 17 

TABLE YIII. Lahor Productivity in Fiv^ Areas of t/ie 
United States in Aa:;v.st 19C4 for 
Three T;-:)es of Ties Emressed As a 
Percpnt.ai;e ^ .' he- York Cit'"" Producti- 
vit ^ IS 

TABLE I". Computed ueekl7 l^a^-jes in Pivo iii-eas of 
the United St.otes i'- h'V 1953 and 
August 1954 for "otir T—peir, of Ties 19 

TABLE X. Conputed iTeekl:'- I7a::es in Five Areas of 
the United States in 11:?:^ 1953 and 
August 1954 for Three I^es of Ties 
Expressed As A Percent ^e of ITe^T York 
Oily Uaf-es 20 

TABLE XI, Averafre A-inual "•^.^;es h;r States, 1929 

and 1951 22 

TABLE ::il. Consolidated Profit anf Loss Statenent 

of i.;-n"af acturers in Five Areas of the 

United States in Terns of percenta;;es 

of iTet Sale-^s for the Year 1933 and 

Si:-; I.ionths Periods Endinr; Juie 30, 

1933 and 1934 24 

TABLE XIII. Hours, '.'a/ves ond Erxnings of Factor-/ 
and Office Enolo/ees h:' Statos for 



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tlie Pour Wepks in Fetr-mry, 19S5 45 

TAELJi XIV, IiO'ui^s, Wages end. Eosni-ars of Factor^r 
Enplo^rees Ercclxiding "Cutters" Ey 
States for tne Pour ifeeirs in 
relDruaiT 1555 47 

TABLE XV, Hours, Wa;'^;es and Earnings of "C-atters" 
3y States for the Four Weeks in 
Fetruary 19S5 48 

TABLE XVI, Hours, Wages and Earnings of Office 
Er.raloypes Ey States for the Four 
Weeks in February 1935 4-9 

TABLE XVII. Su--nary of Data for Hand-Lade Ties, 

Hemjied. in I'ay 1933 and Aiig^-St 1S34 in 

Five Areas of the United States 64 

TABLE ^III, S-unmary of Data for Hnjad-IJade Ties, 

Lined' in L'-y 1933 an" A^ifrast 1934 in 

Five Areas of the United St^^tes 65 

TABLE XIX, Sunrar^r of Drta for i.:rchinp-i.;ade, Unlined, 
2-Piece Shape Ties in I ay 1S33 pjid 
August ^1934 in Five Areas of t^ie 
United States 66 

TABLE XX. Sur-imary of Data for French-l^c; Ties in 

I.iay 1333 ax-d. Au,-u.st 1934 in Five Areas 

of the Uni ted State s 67 

TABLE ]CII. Supjmary of Data, for IvIachine-LIade, Pocket 
Lined Ties in l^ay 1D33 ?jid Auaust 1934 
in Five Axe^.z of the United States 68 

TABLE XJai. S-a.-:mary of Data for Uachine-hade , : :argin, 
2-Piece Shaoe, Ties in Lay 1S33 and 
August 1934 in Five Ai'eas of the 
United States 69 

TABLE X^illl, Surnnary of Data for French Ties Other 
Than W; in i:ay 1935 and August 1S34 
in Five Areas of the United States .4..... 70 

TABLE XXIV, SiiJimary of Data for French. Small and 
Closed Short Pieced Ties in E-iy 1935 
aid August 1934 in Five Areas of the 
United States 71 

TABLE XXV. . Piece I'la.tes and Productivity By oera,- 
tions in Five Areas of the United. 
States in ] ay 1933 and August 1934 
for Hand-Made Ties, Lined,,,*.,,,,,.... 72 



♦IV- 



TABLE :[::VI. Piece Zr.t; a rv-d ?-/o. ctivit;,- ;3" Ooprnr- 

■fciOiis ill rive Ayer^B of tlie United 
States in Ury 19;:'3 and August 19L4- 
for I'ri.chijie-l.-'"C,e, un?;.i}a6d, 2-Piece 
Shape Ties 73 

TABLE X:C7II. Piece Rates and Productivit;^ 'b].^ dera- 
tions in rive A:.'eas of tne United 
Sto.tes in I'oy 1955 nnd AUi^ust 1934 
for Lachine-Made , Open Largined 
Lined Larg;e End, French Slip.II pzlc. 
Closed, Short Pieced Ties 74 

LIST OP A?PE1G)I^:jI:S Page 

Appendir "A" Stati stical Do.ta 62 

Appendix "3" Uage Schedules in the Agreerient of 

Septenhpr 1, 1955 5et^7een the hen's 

lie ck:7e ar J :n:^iuf ,ac tur e r s ' As s o c i at i on 

of I^ew York, Inc. .-uid tne Unitod 

I'eclnTBar I ",aher s ' Uni on 75 

Apiendi:: "C" Report of a Cmfere'ice held tx-- the 

National Industrial Recover;- Adnin- 

istration on Aa#:ust 2, 1934 Relative 

to the Erie Neckwear hanufacturlng 

Conpanj' , Erie , Pa 73 

Ap^endi:: "D" Article IV - ".Ta;;^es - from tne Proposed 

Code for the hen's Jle ckv/ear IndustrjJ- 
llovenher 20 , 1955 89 

Appendix "£" Report hy ";,", Irvin,:-: .,clf to the Code 

A-thoritjr of the hen's iTf-chv./ear 
Industr:,'-, A'-'ril 2"., 1935 92 

Appendix "F" Piece-7/ork Uat^-e Schedule (price List 

Ko, 1) Attached to Code Au.thority 
Bulletin ho, 2, Januar;?- 29, 1955 97 



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_1_ 

SUMivIARY OF PIIIDIITGS 

Tile NEA Code of Fair Competition for the Ken's Heclanfear Industry 

has heen selected for a study of the provisions for " wages ahove the^ 

minimum" inasmuch as it represents the one code in which a corriprehensive 

wage schedule was incorporated as part of the original code. 

One of the purposes of the Siational Industrial Recovery Act (the 
NIHA) was to increase "purchasing power" by raising payrolls. 'vHiile the 
minimum \Yage provisions in codes of fair competition affected all workers 
in an industry or trade, they did not directly control the wages of those 
workers who in the pre~code period had "been paid in excess of the pre- 
cede minimum. This group of workers consisted of those commonly termed 
"skilled" and "semi-skilled", terms loosely used and withoiit precise 
limits. Provisions for "wages ahove the lainimom" were conceived to pro- 
vide a control for the wages of these workers. To effect the purposes 
of the NIRA it was deemed iiriDortant that all weekly wages on the hasis _.• 
of the reduced code week "be at least maintained. 

Chapter I. The I ndustry 

The Men's Neckwear Industry is relatively small. In 1929 there were 
approximately 8565 wage earners. The industr;^ h^s been and continues to 
he concentrated largely in llew York City. Since 1918, the proportion of 
the i^roduct made outside Kev.' York City has increased considerably. It 
has "been claimed that this shifting was due to the lower wage paid in the 
other areas. 

Prior to the HIRA the industry was not generally organized either 
as regards management or labor. There did exist a trade association of 
a majority of the manufacturers located in ITev; York City. There was also 
a strong union in Hew York City affiliated with the American Federation 
of Labor, consisting of the manufacturing entployees of the members of th-is 
trade association. A high development in ernployer-employee relationships 
betv/een the trade association rnd the union had been achieved. 

Chapter I. The Pi ece-Work System in Uni on Shoijs in Hew York City 

Collective bargs-ining agreements between the trade association and 
the union in Hew York City, incomors.ting a piece-work wage paj^rnent 
system, the method of payment prevailing in the industry, vrere customary, 
Rates for operations not covered by the basic conditions of the collect- 
ive bargaining agreement were expeditiously and stais.f actorily handled. 

Chapter I. Aye a Wage Different ials 

Prior to the Code there was a wide disparity in the v/ages paid in . 
the five areas of the industry and between estsblisriments located in the 
same area. The highest wages were -paid in the Hew York City area. Weekly 
wages in manufacturing operations- ranged from $2. CO to $3.00 for a 56 
hour week to $60.00 per week. Total piece-work rates in the comraating 
area of Hew York City were as much as 40 percent less than the 



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cori-esi^ondin^- New Yoi-lc City rate. The wa^^e differentials existing in the 
five areas presented one nf the most trouhlesome issues in the negotia- 
tions of the code. 

Chapter I. The Code Negotiations 

Negotiations for the code extended over a protracted period, from 
October 12, 1933 to March 24, 1934. The different attitudes of manu- 
facturers in the several areas, particularly concerning minimum wages 
appeared irreconcilahle. There appeared to he no unanimity of opinion. 
Manufacturers in New York City, hound hy the union agreement and repre- 
senting ahout 50 percent of the industry hy number of emjoloyees, demanded 
the preservation of the rates of pay prescribed by this agreement. Labor 
made s imilar demands. Mpjiufacturers in the areas outside New York City 
insisted on a lower scale of wages. A so-termed "Southern differential" 
was proposed by some manufacturers. The rates finally incon^orated in 
the code were, less than those prevailing in the Nev/ York City area. 

Chapter I. Deficiencies of the .Code_ Provisions 

This code did not establish effective control of "wages above the 
minimum". There was no provision for the maintenance of weekly earnings 
for the reduced code weelc. The rates prescribed did not maintain the 
pre-code piece-work or weekly rates of all workers. Tlie prescribed rates 
could be disregarded by resorting to technical evasions permitted by one 
clause. In other ways the provisions v;ere neither clear nor complete. 
Neither specifications of the products nor the manui'acturing operations 
were precisely set forth. The formal procedure requiring the approval of 
the NRA, for establishing rates for operations not scheduled by the code 
was cumbersome. It permitted manufacturers to disregard it. The provi- 
sional procedure tended to defeat the purooses of the formal procedure. 
The provisions for reporting labor statistics vrere also weak. 

Chapter II. The Ef fects of Ahe _Cojie oji_JionRXJS.ariii_ni?R 

A comparison, in terms of averages, between the money earnings of 
manufacturing employees in a iire-code period in May 1933 and a post-code 
period in August. 1934, shoves that the money earnings of the eiiployees 
examined were higher in the post-code period. The increases in their 
entirety, however,, cannot be attributed to the influence of the code. 
The code did not i^rovide for an increase in the wages of all workers. 
Furthermore, the increases did not indicate that the prescribed rates in 
the code had been observed in all cases. 

Chapter II. The,-lf£.ec_t.s. of the Code on Wage Differentials 

The minimum rates for the major manufacturing operations prescribed 
by the code tended to remove the total and individual piece work wage 
rate differentials existing prior to the code, particularly in the four 
pre-code low wage areas. A wide disparity still existed, however, in the 
post-code period between the rates paid in these foiijr areas and those 
paid in the New York City area. The leveling of piece-work rates did not 
remove the differentials in the hourly earnings of the workers. Marked 
differences in the hourly rates paid to workers still remained in the 
post-code period. The ninimom weekly rate for "cutters" prescribed by 

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the code tended to level the wacies of these workers in the fear pre-code 
low v/age areas. The post-code wages for these workers in these areas re- 
mained considerably lower than in the ilev/ York City area. 

Chapter II. The Piece-Work Wa;f.:e Fa^ /nient System 

Evidence does not indicate that a careful consideration ims given to 
the specifications for the different tasks nor that wages, representing 
the exchange of labor power, were determined "by a proper analysis of the 
lahor market. Furthermore, hoth labor and management considered that fair 
competition depended on the stabilization of manufactiiring costs and 
accordingly the expeditious determination and the practical application 
and observance of piece-work rates for operations not scheduled by the 
code. Tlie methods of a-ccomplishing these objectives prescribed by the 
code did not prove to be satisfactory. 

Chap t e r II. IvasiOil .SX. JLi e5.Qr3IPX^L-3Jl4 .SojiillZ. Jia te. . Jia i_ntejiance_ 
Provision. _ .CQiif.lic t _Over. "Cutting" Operations. 

The two most troublesome issues other than the determination of new 
piece-work rates are discussed. The problem concerning the limitations 
of the "cutting" oi^eration arose as a result of the failiire of the code 
to define this operation. The iIHA ma.de a gesture toward resolving the 
problem by issuing an incorrplete interpretation. The issue, however, was 
never settled. Corqalaints alleging a violation of the provision prohibit- 
ing a reduction in the pre-code piece-viork and hourly rates were made. 
Manufacturers opening new plants, or re-locating old plants held that there 
were' no October 6, 1933 rates to be maintained. Coniplaints were also 
made alleging reductions in rates as a consequence of the re-classification 
of the products of certain manufacturers under the union agreement in New 
York City which prescribed tv,'o wage schedules, one for each of two quality 
grades of products. 

Chapter III. Appraii-.a!" , 

An ap-nraisal is made of the provisions in the code for "wages above 
the minimum". It is found that the Code did not provide for the mainten- 
ance of the money earnings of all workers. This situation tended to in- 
duce a "sr)eed-up". Notwithstanding, the Code did appear to raise the wages 
of workers in some sectors of the industry. 

It is also found that an industrial statute on a national basis for 
an industry of this character created under the conditions that prevailed 
prescribing a piece-work wage payment system v/as not practicable nor were 
the rates properly determined. Three specific reasons are set forth: (l) 
the adjTiinistration viras centralized at a point remote from the origin of the 
problems requiring prompt action, (2) the proof of an alleged violation 
was difficult to establish, and (s) the rates not established in a manner 
designed to enlist cooperation of the organized workers of the industry. 
It is also found that due regard vras not given to all pertinent conditions 
in arriving at the determination to adopt a piece-work wage payment system 
nor the minimum rates prescribed. 



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CIIAPTExl I 

Tir.'S INDUSTRY MID T'.iS GODS PROVISIONS 

The NHA Code of Fair Competition for tue Men's Heckwear I-ndustry 
furnishes tlie outstanding example of a code providing, in addition to 
the general basic minima, specific minimuin rates of pay for stated opera- 
tions in the form of piece-v;ork rates. In fact this method of providing 
for "TiTages Above the Minimum" was used in onl^/ two otner codes. (*) "lence, 
an examination of the development and the experiences under the provisions 
incorporated in the code for this industry is requisite to any complete 
discussion of the subject of ""i?ages Ab:)ve the Minimum" in KHA codes. 

A. TIIE INDUSTRY 

The Men's Neckwear' Industry is comparatively small manufacturing in 
1933 a pliysical output valued at $33,741,114. (**) This output represented 
over 8.0 million dozens of neckties and over 183 thousand dozens of scarfs 
and mufflers. (***) 

■nHliile production in this industry "aas continued to be concentrated in 
New York City, there has been an ascending trend in other areas. In 1913, 
only 15 per cent of the product of this industry v/as manufactured outside 
of New York City. By 1927, the proportion of the product- produced outside 
of New York City had increased to 45.5 per cent. (****) This diversion of 
production to other areas was accompanied by a decline in the number of 
workers employed by establishj-nents in New York City. In 1929, 42.2 per cent 
of the 8565 v/age earners reported in this industry were employed in New 
York City but in 1931 only 33.6 per cent of the 8,155 similarly reported 
were so employed. Between these two years, the reluction in the number of 
workers employed in New York City establish-ments was more marked than in 
any other area. (*****) 

B. THE PIECE-WOBK SYSTEM IN UNION SHOPS IN N3.7 YGM CITY. 

AlthoUii;li New York City was declining as a center of production, it 
possessed the most highly developed program for organized relationships 



(*) The code for the Bituminous Coal Industry included certain 

piece-work rates. The code for the Leather and Woolen Knit 
Glove Industry was modified to provide piece-work rates. 

<**) Cf. "Tearing Apparel" - Census of Manufactures: 1933, p. 28, 

U. S. Department of Commerce (1935). The figure is the value 
of "neckvrear (otlier than collers), not made in knitting mills". 
Section 1 of Article I of the code defines tlie industry to in- 
clude "Men's and Boys' neckwear (excluding knitted and leather 
ties)". "Scarfs" and "mufflers" v/ere construed to be included. 

(***) Ibid, p. 28. 

(**=^*^ Qf^ Brief by Labor Bureau Inc., p. 14 (February 4, 1935). 

(*****) Cf. Table No. I. From data presented at the Public Hearing on 
tie code, it would ap:jear that the number of vrorkers employed 
in New York City establishments in 1933 had increased. 

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LIEN'S 'JECE;ra.iR ilJDUSTHY 
MIGRATION GE kY0:2[E2S IK T..E ivIEH' S rlZCOEAE IlTDUSTaY AS 
INDICATED 3Y TI51 C:!AK3E HI if iH AVZ^GE ERJi^ilH OP WAGE 
EABNEHS IK THE VAEIlUS STATES BET.V^iEK 19-:^9 and 1931* 





Increase or 




Decrease 


State 


1929 1931 Since 1929 


United States 


8,565 8,155 - 410 


California 


574 486 - 38 


Illinois 


543 496 - 47 


Maryland 


275 ■ 313 / 43 


Massachusetts 


703 663 - 45 


Missouri 


684 588 - 96 


Ke\7 Jersey 


71 139 ■ / 68 


New York 


4,258 3,166 - 1,092 


Nev7 York City 


3,620 2,746 - 874 


Rest of state 


638 420 - 218 


Ohio 


429 454 / 25 


Pennsylv.-ania 


379 , . 834 / 455 


Other states 


645 ** 1,012 *** / 367 


*, Special tabulation 


of the Census of Ilanufactares. 


** C,n^ r.y»r\n . Cnnn finti{ 


r:ut . rifiore'ia.. Trv/a. Tf en tuck^. 



Louisiana, I/iichiijan, Nebraska, Oregon, Texn,s, Washington, 

Wisconsin. 

Colorado, Connecticut, G-eorijia, Kentuclcy, Louisiana, Michigan, 

Minnesota, Nebraska, Oregon, Texas, Washington, Wisconsin 



9857 



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between employers and employees. It also paid, with few exceptions, tlie 
highest total piece-work rates in the -manufacture of the product. Collec- 
tive "bargaining agreements between the United Neckwear Makers' Union (*) 
and the Lien's Neckwear Uan-ufacturers' Association, (**) dealing with 
rates of pay and other conditions of employment, had become customary. 
The Agreement of September 1, 1933, between 140 JTianufacturers and the 
union extracts of the wage schedule of v;hich are set forth in Appendix "B" 
is typical. At this time, the Trade Association represented about 50 
per cent in members of the manufacturers located in Ney/ York City and about 
75 per cent of the value of the products manufactured in that area. An ex- 
amination of the Agreement indicates the comprehensive character of the 
piece-work rate wage schedule determined for the seven operations of the 
stated types of products or parts. 

Members of the Trade Association were divided into two major classes, 
depneding on tne quality of the products. Tv/o separate wage schedules 
conforming to each of these two major quality groups of products were set 
forth iii th.: Agreement. Tue Agreement, however, modified the application 
of these two wage schedules. A member r.f the Trade Association, distri- 
buting through jobbers 75 per cent or more of its products regardless of 
their quality, was considered in tne lower priced grade and was privileged 
to pay the lower rates applicable to this group. (***) The Agreement also 
prescribed minimum weekly rates of pay for certain occupational classifica- 
tions including "boxers" and "tririmers". A rate for "cutters" was not in- 
cluded in the September 1, 1935, Agreement. Definite specifications, how- 
ever, completely defining the limits of the operation, the products and 
the tv/o quality standards were lacking. 

The United Neckwear Matcers' Union souglit to establish uniform rates 
of pay for its members engaged in producing the "same class of work made 
under the same conditions''. Changes in the style and shape of the pro- 
ducts and changes in the methods of manufacture demanded continuous and 
prompt consideration to determine appropriate rates for operations not 



(*) Tlie United Neckwear Makers' Union comprising employees in the 

manufacturing processes T/as originally chartered by the American 
j'ederation of Labor in 1903. Tliis Union was affiliated with the 
Amalgamated Clothing Workers of America in 1935. The Neckwear 
Tackers, Trimmers & Boxers Union also had collective bargaining 
agreements with the Men's Neckwear Manufacturers' Association. 

(**) Tliis Trade Association, consisting largely of manufacturers lo- 
cated in New York City, existed for some years prior to the 

NIRA. 

(***) Cf. p. 34 for discussion of the operation of cutting. 



9857 



previously scheduled in tlie Agreeiaent. Tlie Agre'3uient -^rescrilDed pro- 
cedure to be followed in such cases. Briefly, t}iis procedura required 
the manufacturers to forward to the price hoard jf the Union, models and 
other descriptive data for e8.ch change in advance of txie manufacture of 
the finished prodLict. . (*) Although the Agreement is not clear on this 
point, the manufacturers and tue workers were permitted to proceed witli 
the manufacture of the product pending the. final determination of the 
ap'oropriate rates. Tlie units produced Dy each worker were recorded 'by 
the manufacturer and he was paid on the basis of the rates final "".y fixed. 
In the meantime a worker could individually agree v/ith his emplo^^er as 
to the Biiiount of v/ages to he paid on account, pending the final reckoning. 
No dela,y was experienced in production, and the wages of the worker were 
fully protected. 

Within one week after the submission of the data relative to a con- 
templated change, the price board of the Union was required to determine 
the rates of apy for the Ojperations involved and the manufacturer was noti- 
fied accordingly througia the trade association. The trade association, 
through its adjuster, was permitted to confer Yjith the Union for the purpose 
of presenting its representation to the price board. Failure to notify 
the price board of any objection within two Y/eeks after the manufacturer 
had been notified of the new rates, constituted an acceptance and the rates 
so determined became fixed. In case of the receipt of an objection from 
the trade association within the two weeks, the matter v/as referred to the 
Committee on Immediate Action. (**) It was the duty of this CoiTimittee to 
T/eight the problem and endeavor to determine equitable rates. If the Com- 
mittee on Immediate Action was unable to agree on the proper rates for a 
style or shape not previously manufactured and not a variation of an exist- 
ing or former style or shape, the matter was referred to the uinpire of a 
conference committee for final determination. (***) 

In fixing the "proper rate for an operation, the A^greement provided 
that the price board v?as to be guided by certain principles. In substance 
these principles v;ere interpreted to mean (****) _ (i) that the rate for an 
operat on for a given product should be reasonably comparably to the rate 

(*) Louis Fucns, Manager of the United Heckwear Makers' Union, stated 

tiat the Price Board consisted of nine employees, representing each 
branch of the Trade. See letter to the NBA, November 18, 1935. 

(**) The Union Agreement of September 1, 1933, states that the Committee 

on Immediate Action ¥;as composed of a designated representative of the 
Union and the designated adjuster of the (trade) association and two 
Union members and two (trade) -association members. 

(***) The Union Agreement cf September 1, 1933, states that the umpire for 

the conference committee sliall be designated by the members of the com- 
mittee from time to t:.me as a necessity exists. In ad'htion to the 
umpire, the comi'nittee c nsisted of five representative appointed by 
the trade association and five appointed by and from the Union, 

(****) Cf . Letter of Louis Fuchs, Manager, United Neckwear Makers' Union, 
to t.ie 1-IRA, November 18, 1935. 



9857 



for a similar operation performed "by the suae nmn'ber of the trade asso- 
ciation, (3) that the rate for an operation for a jive'n product should 
he comparable to the rate for a similar operation perforjiied hy another 
memher of the trade association, (3) that the potential earnings of the 
worker enga-ced in performing the operation should be considered in terms 
of his hourljr earnings and in any event the rate should yield earnings 
eoual to that for a similar operation, and (4-) that the rate should be 
the com-oosite result of the axDplication of the three foregoing prin- 
ciples. (*) 

In the conduct of the price board and the Committee on Im-iediate 
Action, emphasis "^as placed on the expeditious handling of rate de- 
termine^tions. Prior to 1928, the price board settled bet^"Teen 15 and 20 
changes each vreek. Of the aporoximately 400 decisions rendered by the 
price board during the year 1932 to 1935, inclusive, oily 8 'lere chal- 
lenged ''oy the manufacturers. These 8 cases, however, -'ere speediljr and 
equitably adjusted. Since 1914, it had been foiXiid necessary to subrait 
only 4 cases to an u]n-oire. (**) 

c. aei:a ijage difpsis::tjiai.s 

The iTide disparity bet'"een the \7ages paid in the llev York City area 
in comiparison to those paid in other areas of the United States, both 
prior to and subsequent to the codification of, this industry had an im- 
portant bearing on the code nOf'^'otiations, the administration of the code 
and the regula,tion of the '7age of the 'Torkers unr^er the code provisions. 
At this point, the disparity bet\7een the rates paid prior to the code in 
the different areas of the United Ste.tes viill be discussed. The influences. 



(*) The trrenty-second Article of the Agreement of September 1, 1933, 
sets forth the principles as follows: 

"(a) The nevr shape shall be compared reasonably in price to 
the most similar shape made by the Association Uember. 

"(b) The ne'7 shape shall be compared \7ith the same shape if 
made by another Association Member '7hose malting is of a sim- 
ilar grade of goods. 

"(c) The reasonable eajrning -pokier of the Union Member in mailing 
the nerr shape so that the earning of such Union Member on the 
ne^ shape shall be no less (after working on the shape a reason- 
able length of time) than if such Union Member \7ere working on 
the next or similar shape. 

"(d) The price shall be a reasonable adjustment, after talcing 
into consideration all of the three points last above set out." 

(**) Cf . Letter by Louis Puchs, Manager, United Kectoear Makers' 
Union to the KRA, Fovember 18, 1935. 



9857 



-9- 



of these differentials on the aclo-otion of the uocle provisions nill be 
pointed out later in the disciissioii of coc'e negotiations. 

In 193 3, the highest total piece-nork rates in the manufacture of 
the four most representative t/pes of ties ^.^ere v^ith fen exceptions, 
paid "by manufacturers located in l^ev, Yovl: City. (*) Lianufacturers 
in the Far-"Jest area ps-id slightly higher total -oiece-^wrk rat^s for 
two of the four types. This statemBnt , ho'.7ever, requires some expla^- 
nation. As rrill be revealed later in the discussion of piecs-'vork 
rates for individual opera.tions, the hijTchest piece-work rate '^'or "slip- 
stitching", was paid in the Par- West area (**) But the rates paid in . 
this area for all 'other operc?.tions were conc-iderabl?/ lo:."er th.an the 
He- York City rates. {***) Although in the later aiia.l/sis of piece- 
work rates for individual operations oily one type of tie was consid- 
ered, it would seem reasonable to assume that the rates for "slip-stit- 
ching" for the other types of ties would a.lso be the highest in Far- 
T^est area. This being the case it wouldp-ooear thr.t the high rates paid 
for "slip-stitching" were sufficient to offset tne lower rates for all 
other operations for the tro t^rpes of ties. : 

Slightly higher total piece-.Tork rates than those in the lievi York 
City area were paid by the manufacturers in the IvIid-lTest area for one 
other tie. The difference, however, was oily 0.9 per cent and again may 
be accounted for by the apparent higher piece-work rates paid for "slip- 
stitching" in that area. The lowest tota2 piece-\/ork rates were paid by 
manufact'orers in the coi.ii.T'at ing axea of ITev; York City (****). 



(*) Cf . Tables IIos. II Euid III. Pour types of ties vere selected by 

the KSA, Division of Research and Planning, as the most represen- 
ta.tive types included by the code for an analysis of operations 
performed, productivity of labor, costs, operating expenses and 
profits. "Total piece-work rates" in this study refer to the sum 
of the individual operation "piece-work ra.tes". To insure compa- 
rability in the tabulations, only those operations listed by the 
code for a specific type of tie have been considered. See also 
Explanatory Hotes, Statistical Data, Appendix "A" for meanings of 
terms used, for extent of areas, etc. 

(**) "Slip-stitching" is tne operation of so-termed "loose" sewing on 
the back part of the tie. It is one of the major operations and 
usually performed by hand. Frequently this operation is "con- 
tracted". Due to the skill required there was a scarcity ot ex- 
perienced, "slip-stitchers" in some localities. It has been 
stated tho,t prior to the co'Te, the United rlecjcear LLal^ers' Union 
did not give due recognition to this operation and conseauently 
the rates of pay had not been adva.;-.ced on a par with other rates. 

(***) Cf. p. 14 

(****) It has been claimed tha.t ra.tes in that part of the state of New 
Jersey contiguous to Hew York were p,articularly low. This area 
was included in the Corarautting area of Hew York. 



9857 



-10- 



TABL3 II 
ivEK'S iiSCK-.^AS i:n)UST3Y 
TOTAL PISC3 ".TORK HATES III FIVE AREAS OE THE UlIITED STATES 

Hi I.JIY 1933 and AUGUST 1934 
EOS 
FOUS TYPES OF TIES (*) 

(piece-'Tork rates in cents per dozen) 



Area 



ITe-T York City 
Commuting Area 
Atlantic Coast 
Mid-West 
Ear-West 

Code Mininnim 



Kajid-i.iade 
Ties, Hemued 

Hay Aug. 

1933 1934 



50.5 
58.5 
57.3 
74.9 



91.5 
74.4 
75.1 
74.7 
78.2 

74:0 



Hand-Made 
Ties, Lined 

Hay Aug. 
1933 1934 



91.1 
57.2 
55.7 
64.5 
.85.1, 



113.9 
88.8 
90.2 
87.6 
93.3 

89.0 



Machine-! ;ade 
Unlined, 2- 
Piece Shape 

lle.y Aug. 

1933 1934 



45.9 
28.8 
34.2 
34.9 
46.3 



52.5 
42.5 
42.6 
42.7 
48.2 

42.5 



Erench Ties 



10^ 



h!xy 
1933 



Aug. 
1934 



22.2 26.6 

13.3 21.3 
15.7 31.1 

23.4 27.2 

22.0 



(*) The total piece rates showi include only the operations 

listed in the code. 

(**) A representr.tive average could not "be computed due to an 

insufficient n^unher of reports. 

Source of Data; ' "Preliminary Report on the Analysis. of Piece Sates, 
Lahor Productivity and Consolidated Profit and Loss 
. Statements, May 1933 and August 1934 '"for the Men's 
Neckirear Industry," prepared hy the Industry Report- 
ing Unit, Division of Research and Planning, National 
Recovery Administration, January 2, 1935. 



9857 



-11- 



. TABLE III 
ffllP S HEGi:^3AIl IKDIISTSY 
TOTAL PIECE i70EK EA2ES IH EIVE AREAS OE TIIE UKI-ED STATES 
IH MAI 1935 and AuCUST 1934 

roR' 

EOIJE TYPES OE TIES 
EXPHESSED AS A PESCEliTAuS OE ;uE7 YOSE; CITY RATES 



Area 



Kev7 York City 
Commuting Area 
Atlantic Coast 
Mid-?fest 
Ear-¥est 



Code Mini!iiu.m 



Hand-Made 
Ties, He.nned 



luay 
1933 

100.0 
73.3 
84.4 
82.6 

108.1 



Aug. 
„ l.S-34 

100 . 
31.4 
82.1 
81.7 



30.9 



Hand-i'ade 
Ties, Lined 



..ay 
1933 

100.0 
52.7 



Aui5 



ICO.O 
78.0 



72.1 79.2 
70.8 76.9 
93.4 81.9 



liachine-iiade 
Unlined, 2- 
Piece Shape 

May Aug. 
195r 1934 



100 . 
52.8 
74.4 
73.9 

100.9 



100.0 
31.0 
31.1 

81 . i 

91.8 



31.0 



Erer.ch Ties 
10?^ 



100.0 100.0 

60.0 79.9 

70.7 79.4 

105.4 102.3 



82.7 



(*) A representative avera;?"e could not lie computed due to insufficient 
number of rejports. 



Source of Data: 



"Prelirainajry Re-oort on the Analysis of Piece Rates, 
Labor Productivity and Consolidated Profit and Loss 
Statements, May 1933 snd Auf^ust 1934 for the Men's 
Neclnsrear Industry", prepared by the Indn.stry Report- 
ing Unit, Division of Research anc^ Planning, National 
Recovery Administrption, JpnLiary 2, 1935. 



9857 



-12- 

"Tien presenteo. in tei'rjs of a comTnon "base, the ineo-arlities in the 
total piece-work rrtes prlcl thruout the United Str.tes prior to the code 
and particularlj'- the Iiifih rates prevailing in the lie':: York city area are 
more readily recocni:3ed, (*) Por the four repreDcntc-.tive ties, only 
three total piece— v/ork rr/tes -vera in excess of the lie-? York city p,rea 
rates. The hio;hest of these was only S.l percent higher than the corres- 
ponding' New York cit;-" area r^te. This rate '.las paid in the Far-Uest area 
for "hand-:nade heuned" ties and represented a. difference of 5-6 cents per 
dozen. (**) One other total piece-work rate for "French-10(^" ties in the 
Mid-'.Test area was ^mh per cent hi;';'her than the Hew York City area rates 
and one for "Hachine-nade Linlined 2-piece shape" ties in the Par-West 
area was O.9 percent hi;^,■he^. At the other erctrer.e, however, the lowest 
total piece-work rate was psdd for "Prench-lOr^" ties in the com^Tuting 
area of New York Cit;-. [This rate was 60 per cent of the New York City 
area rpte. In the .^tlantic- Coast area the total piece-work rate for this 
sane tie was 70»7 P^r cent of the New York City area rate. In terras of 
money differences the total piece work rate in the co;"i:iu.ting area of New 
York City for "hand«iiade lined" ties was as rmch as 33 •$ cents less than 
the New York City area rate. Excepting the three rates that i^ere higher 
than the New York City area rates, all total piece-work rates in other 
areas with one exception were at least I5.6 per cent less than the New 
York City area rates, ' ' 

An analysis hy individual manufacturing oper?,tion's discloses a sim- 
ilar disparity "bet'.-een the piece-\7ork rates paid in 1333» ^^^ highest 
rates for representative individual opera.tions for "hr.nd-made henmed" 
ties were paid hy uanufr.cturers in the New York City a,rea, with one ex- 
ception, i.e., for " slip-stitching". (***) The highest rate for this op- 
eration was paid in the Par-¥est area. And, a.s previoiisly stated, it 
was sufficiently high to nore than compensate for the low i-ates pa.id in 
this area for all other individual operations a,nd to nake the total piece- 
work rates paid in this a.rea for two types of ties, the highest in the 
United States. Peculiarly, manufacturers in the New York City area paid 
next to the lowest rate for "slip- stitching". In all hut one instance, 
i.e., for "piecintg-pressing", the lowest rates for individual operations 
were paid "by manufacturers in the coraimiting area, of Hew York. (****) 

00 Cf. Table No. III. 

(**) Cf. Tahle IV. 

(***) Cf. Tables ITos. V anc' VI. "Hand-made" ties constitute the great- 
est voluRC of production. The NUA Division of Research and Plan- 
ning selected "hand-made hemmed" ties as a representative type for 
analysis of individual operations. The riajor ::Enufacturing oper- 
ations are "he. rdng", "piecing", "slip-stitching", "piecing-press- 
ing", and "cr-.tting". Dae to the inadeciuacy of data reported, no 
tabulation for "cutting" is presented, 

(****) "Piecing-pressing" is the operation of pressing the jointed sec- 
tions of the tie r.fter the "piecing" operation is performed. This 
operation is generally a machine operation. 



9S57 



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-14- 



Manufacturers in tlie I.;ic-'.7est area paid the lor/est rr/ces for "piecing- 
pressing". 

The wide disparity in the rptes for indivi:ucl operations is like- 
wise more readilr un'.'.erctood './hen expressed in percentr/;es of the rates 
paid in the New Yorl: Cit^ area where rates for individual operations v/ere 
generally the highest. (*) In the iiid-'u"est are,?,, piece-work rates -'ere as 
low as 50 per cent of tlie Lew York City ra.tes for "piecing-pressing" and 
in the confuting arer, of Hew York City as low as 55*6 P©^ cent for "hem- 
ming" and"'piecing". (**) At the other extreme, the rates in the Par 7est 
for "slip-stitching" -..-ere U5 per cent higher than the Hew York City rates. 
The distorted effect that this situation had on the totol piece-work rates 
in the 5'ar-Westi area h-T.s already been emphasised. 

The preceding "u-iGCUssion shows the disparit;- jetvreen the total piece- 
work and individapj. piece-work rates throughout the United States prior 
to the approval of the code. It particularly e!:phasizes the high rates 
paid-in 'the New York City area. The Hew York City area also afforded the 
workers the highest pre-code weekly and annual earnings. 

In May 1933j "tlic l\ighest computed average veekljr wage, i.e., $29.75 
was paid in the Hew York City area.(***) The lowest conjxited average 
weekly wage, i.e., Ol;^.33, was paid in the Mid-u'est area during this same 
period. (****) In the case of "machine-made unlined 2 piece" ties, the 
lowest computed weeklj-- wa:;e in the Mid-West area was U3.4 per cent of the 
Hew York City area vrage. Computed weekly wages, in terms of the Hew York 
City area wage, ranged frou this low of kS.k per cent to^ S5,5 per cent in 
the Far West for '.'hand-:iade heraraed" ties. Ho corrpu.ted weekly wage approach- 
ed the Hew York City area highs, within 1U.5 per cent* 



(*) Cf. Tahle Ho. VI, : ■ • 

(**) It was necessai-:;- to comhine these two ope:--ations in Tables Hos. V. 
and VI inasviuch. as a large number of the Hew York City and iiid- 
Uest reporting nanufacturers combined these operations and report- 
ed one piece--.:ork rate for the two. "Herrdng" is the operation of 
se?;ing the edges at the two extreme ends of the tie. It is usually 
a machine operation, "Piecing" is the opera.tion of sewing together 
the two sections of the tie where it is hidden under the collan- at 
the back of the -./earer' s neck. This operation is also a machine 
operation, 

(***)Cf .Table Hos. IH and X. Table IX shows the ar.ount which an employee 
of average efficiency woi;i,ld earn, assuiuing he performed the same 
operation continuously on a pa:rticular tie in a jS hour week. The 
snount incicated is the product of the piece rates paid per dozen 
■; by the nuiber of dozens that a worker conoid produce in one hour 
times 36. The sa:ie prodactivity in 1S3^^- '"^^-s assuraed for 1933' 
See Tables Hos. VII and VIII, for labor productivity rn each o*'tl.ie 
five areas. 

(****) Data are not co;'plete for the comnuting area of Hew York City. 
In the one instance where data are available for this area, the 
computed -.:eekly vrage is higher than the corresponding wage in the 
Mid-West area,. 

9S57 



--16- 
T^LE VI 

liZllj'S IffiCKiTEAS INDUS''??.! 

PIECE .7021: laVJLS II\T iriE .iJiEAS Oj? ■Jiii: UiTI^'ED STATES 

III I;AY 1933 and AUGUST IS3U 

EQE 

ITrZ OPEHATIOKS OK EAlCD-LIiLDE ::LJZJID TIES 

EXPRESSED AS A PEHCSiOTAC-E OE iJEW YOHIC CITY "j\G-ES 



rlen::inr; r,nd 
PieciiV; 



M;.S' 



— '■ -: T • 



1933 153^ 



Slip stitch- 
ing 



May Aug. 
1933 193^ 



Piecing 
Pres sii y; 
May Aug. 

1933 193^ 



Pressing 



May 
1933 



Aug. 
193^ 



New York City 100.0 
Cominuting Area 55 -^ 
Atlantic Coast 56.5 
Mid-west 56.5 

Par- 1.76 st 6S,? 



100.0 100.0 100.0 100.0 100.0 100.0 100.0 

50.2 S9.3 9'^.3 59.^ S^.2 5g.3 75.2 

5G.7 101. g 96.0 T'J.l 7S.9 72. S 73.7 

5S.0 106. S 99.0 50.0 71.1 73.8 72.2 

62.5 1U5.0 102.3 S7.5 7S.9 99.0 78.9 



Source of Data ; "Preli linr.ry Heport on the Anai'/sis of Piece Rates, 
Lr.oor Productivity and Consolidated Profit and Loss 
St:vl.e::ents, May 1933 -^^ Au.^just 193^ -O- 'tlie Hen's 
lTecl;-e.' ,r Industry", prepared 'by tlie Industry/ Reporting 
Unit, Division of Research and Pla.n:iir..g, National 
Eecovery AdMinistrr.tion, Januarj^ 2, 1935» 



9857 



-17- 



TA3LE VII 



:.i]i:'s iNTScKTCiiJi i^ous.si 

LA30:t P::0DUG?IYI^Y IK 'JIYS A-tEAS OJ' Tin: ^JTUZD states TiH 

AUGUST isiU, ix)::i eouh TY?:^is os' ti.^3 2:z;iq]ssi;d 3Y tiie miiBEH 

'or DOZ-S^S 0:J' TISS PIlODtOED PL3. JIOUIL. 



Area 



■Ha.nd-n.'^.J.e 
;tles, !ier:::ed 



Hand-made :!Iachine-".ade, J French 

tiesj; lined : unlined, 3- : ties-lO^i 

: piece shape 



Nevj York City 


• oi 


.■60 


i.6!i ; 


* 


Comrmiting Area 


* 


' * 


1.5s 


2.S2 


Atlantic Coast 


.65 


.5^ 


1.35 


2. OS 


Mid~^7est 


• 55 


• 52 


1,09 


* 


Zar-'Test 


.55 


.51 


.ss 


* 



* A representative r.ve:;a:je could not "be computed due to an insufficient 
numt)er of reports. 

Source of Data; "Prelidnr.ry Eeport on the Analysis of Piece Rates, 
Laoor P;:oductivity and Consoli;"-;:;bed Profit and Loss 
3t-,te;:Gnts, Kay 1933 ^-"-d August I93U for the Men's 
ileclr.'ear Industry", prepa,r e a "oy the Industry*- Report- 
ing Unit, Division of Researdi and Plraining, Ivfational 
P.ecovery jidiainistration, Ja.nu.ary 2, 1935» 



9257 



-18- 
TAlBm VIII 

:;::r!«s H3CK:ffiAR iedustii:: 

LA::JJ2 productivity in" jTVS Jl'UiS 07 TID Ul'ITED 
ST.^TLS III J-JIGUST I93U ?0R TtLZH 'Z:22S 01 TISS 

iix?t:s,sld as a PE3.CENTAr.E OE iiet; 

PRODUCTIVITY. 



Area 



I-I?iac'— j :ac .e ties, 
lie-:j'.ied 



Hand- made ties, 
lined 



I ;0.cliine-ra£i.de , 
unlined, 2- 
piece shape 



New York City 
Gommating Area 
Atlantic Coa-st 
i.iid-'7est 
Ear-i-re st 



100.0 



79. 5 



72. S 



7i.o 



100.0 



S9.6 

S6.0 
sU.7 



100.0 
96.6 

S2.3 

66.7 
60.5 



* A representa-tive ,:-,vc 
number of reports. 



•;e coiild not be conrimted tue to an'- insufficient 



Source of Data: 



"Preli:-.inary Heport on, the Ajialysis of Piece Hates, 
Labor Productivity and GonsoliCrted Profit and Loss 
State-lent s. May 1933 and August I93U for the Hen's 
iTec]:v-ear Industry/", prepared by the Industrj?- Report- 
in/:; Unit, Division of Resea.rch and Planning, National 
Recovery Ad-ninistration, Janiiar;-'' 2, 1935* 



9857 



-19- 

TABLE IX 

COMPUTED lEIlCLY TTJi-IS IN ITIVE A:iiAS 07 T"!; UiilTED STATES 

in 
llc:j 1933 and August 193^1- 
for 
'- ■ Pour Tj'pes of Ties 



Area 



Ha,nd-ur.o.e : Hand- made riiaclaiiie-r.r.cle, : Trench ties 
ties,' 'lie::::Gd:' ties, lined :unlined, 2— i . 10^' 

: :T)iece slia'oe : • 



ila^'- Aii^ust: May August: iiay j-aigust: May August 
19 33 193-^ ! 1933 I93H ! , 1 933 19'^'^- i 1933 193U 



New York City $20.93 S?.7.20:$20.g6 $2^5. 6U: $29. 75 03^^•O2: z i 

Commting Area * * * * 17.3k 25.76 $13-95 $22.17 

Atlantic Coast I3.26 I7.55 12.91 1S.15 • l6.20 22,5S 11.77 15'9T 

Mid-^TCst ■ 12,72 1S.3U 12.33 16.52 1U.69 17. ^S * * 

Far-rest ■ I7.9O IS.5U I5.S6 I7.U3 17.29 17.57 * * 



* A representative ,\vei-.\ 'e could not ~be conptited due to an insufficient 

nurab e r of reports. 

Source of Data: "Preli:^inp,ry Report on the Analysis of Piece Rates, Labor 
Procuctivity and Consolidated Profit and Loss Statements, 
May 1333 and Au^cjast I93U" for the Ment s Neckwear Industry", 
prepared "by the Industry Reporting Unit, Division of Re- 
ser.rch and Planning, National Recovery Administration, 
January 2, 1935. , 



9S57 



"SO- 



TABLE X 

:,;i]N's iviEciaffiAS ihdusthy 

COLiPUTED \Jinm;i T7ii(-ES IH EIVE AREAS OP SIlE UillTED STATES 
liT, ::A1 1933 and AUGUST 193!4 
EOH 
TIIHEE TYPES OE TIES 
EXP?J]SSED AS A PERCEHTaGE OP imi YO?i£ CITY 'JaGES 



Area 


Hr,iicl->i Ir/.e Ties, 
lle:.ried 


Hand-liade Ties, 
Lined 


I.iachine-Ma,de 
Unlined 2-Piece 
Shape 




' Uay Au.gust 

1933 1934 


May August i 

1933 : 193^ 


lle.y August 
1-933 193^ 



New York City 100.0 

Commit ing Area * 

Atlantic Coast 63. U' 

Mid-\7est , 60. S 

Ea}>-i.7est S5.5 



00.0 


100.0; 


100.0 


100.0 


100.0 


*, 


* 


* 


"5S.3 


75.7 


64.5 


.61,9 


70. s 


5U.5 


66.U 


60.1 


59.1 


Gk.k 


49. 4 


51. U 


68.2 


76.0 


6s.o 


5S.1 


51.7 



* A representative average could not be computed dtie, to an insufficient 
number of reports. 



Source of Data: 



"Preli::inary Report on the AnaJ^'^sis of Piece Rates, 
Labor Productivity and Consolidated Profit and Loss 
Statenents, May I933 and Aucu-st I93U for the Men's 
lleclr::ear Industry", prepared "oy the Industry Report- 
ing Unit, Division -of Research Mid Planning, National 
Recovery Administration, Januar;?- 2, 1935» 



9S57 



-21- 

Avera.'i:e annu.-^! v.-r,;';crj in the lien's ileckv.'ear In.fu.str7 vere highest in 
the New York City r.roc, l"oi' the years I929 and 1531,(*) The r.verage rnnaal 
nages in IJe^j York City ia 1529, v.'ere $1373- and .';135S in I93I. The loTOst 
annua-1 '.7ages '7ere al::ost half the Nei; Yorlt City varies in I929 and consid- 
erahly less than Ix.lf in I93I. The lo-jest ^iR,;:e5, r^S^, in I929 and $5^5. 
in 1931, nere in the Str/ce of 1/iaryland, (**) 

Uhile the foregoin.;; presents a comprehensive picttire of the differ- 
ences prevailing in the pre— cooe period in the average nages paid for the 
manufacture of the proc'u.ctG of this industry in the five areas of the 
United States, particularly in relation to the high level of wages in the 
Ke\7 York City are?,, it ".oos not sugtje.st the lou poin.t to ^jhich conditions 
actually fell. Daring the puolic hearing on the Code, a, representative 
of a manufacturer r.'cfcrred to these conditions, renarking: 

"TTe had concerns '.Thich vfere paying wa.-es as lor: as three dollars 
a rreek and sone uhich ".."ere paj^ing up to fifty and sixty dollars 
or even more per ■•Tee]:., ,.3y far the greater nu!:fDer of manufactur- 
ers worked ho to ~ih hours a week." (***) 

The manager of the United lleclr'fear ]"lal:ers' Union also i:eferred to the ex- 
tremely lo^T-pre-code -veekly wages p;aid "by a manufacturer in Eastern Penn- 
sylvania employing 5OO \:o:L'kers. In a letter e::pressing certain opinions 
on the operation of the Code he stated that the average weekly earnings 
of these workers -'ere het-.'een $2 e.nd $3 for a 56-hour week. (****) 

Majiufacturers loccvted in area,s outside of ileu York City, in ration- 
alizing the lo:"'er \7Pyges paid in these areas, freruently referred to the 
scarcity of so-t'er:.ied "skilled" workers in the 1 ocal areas and stressed 
ti;e superior produ.ctivity of the workers in the ITe'j York City area. They 
attrihuted this su:oeriorit;- to the so-terraed "speed— \ip" system that was 
claimed to prevail in that area. Disregarding rai^r denip,l of the feArness 
of competition under s'ach conditions and considering the matter in terms 
of simple arithmetic, it :'ould appear that this reasoning v;as not sound. 
In the first place, a ti. :e-rate wage system wa,s not in general use in any 
area in this industry prior to the code, Other:;ise there ziight have heen 
some support to' these claims. A straight piece-vork wp.ge .rate system, 
i.e., payment for perf or-iai-'.ce, had "been generally prev-alent in the manu- 
facture of the -Droduct. And. a v/orker was paid for what he produced. 



(*) Cf. Ta"ble ilo. XI. 

(**) Maryland is inclu.ded in the Atlantic- Coast area. 

(***) Cf. Hemakrs ""oy Jerry P.'iJall, in the Transci:ipt of the IIRA puhlic 
hearing on the Code for the lien's HecfoTear Industry, Septem"ber lU, 

1933, pp. 70 ff." ■ : ' 

Ir 

(****) Cf. Letter "by Louis 7-achs, Manager, United lTec]:-'.fear Makers' Union 
to the national P.ecovery Adiaini strati on, "i'oveifoer IS, 1935* 



9S57 



-22- 
TaBLE XI 

lizii's ic;]cir.,'EAR iirausTnY 

ATEP-Ai:^ AirUjlL UAC-ES SY ST/iTES, I32S and I53I. 



State 1329 1931 

United States 

California 

Illinois ■ 

Maryland 

Massachusetts 

Missouri 

New Jersey. 

New York 

New York Gity 

Rest of Stp;'Ge, 
Ohio 

Pennsylvania, 
Other states 



Source of Data; Report of the Men's Weclo.7ear Inc'xistry "by the Division 
of llesearch and Planning, Nation?2 Recovery Administra- 
tion (Deceaber I5, 1933) . Special tahLilation of the 
Ccnstis of Lianufactures. 



01,155 : 


$1,021 


1,0^3 


972 


1,002 


l,09U 


. 765 


5^6 


961 


5°5, 


SS3 


S!+5 


1,169 


313 


1.3U6 


1,23s 


■3-r373 


1,359 


i,iS3 


293 •■ 


1,037 


goo 


367 


S76 


SS3 


693 



3S57 



-23- 

Consequently, the vorker's -oroductivi ty did not alter the unit direct 
labor cosG f.lthough it did affect his periodic earnings. This unit 
la.bor cost had oeen -Drp-datermined, frequently without any bargaining 
with those manufacturers not bound by a collective bargaining agree- 
ment . 

The direct labor cost entering into the manufacture of the products 
of this industry is a considerable item. In 1933, the direct manufac- 
turing labor cost was approximately 17 to 19 per cent of the selling 
price to all areas except the commuting area of Kew York City where it 
was only 14 "oer cent. (*) In the same period profits in terms of sell- 
ing price ranged from l.C per cent in the Atlantic-Coast and Mid-West 
areas to 2.4 per cent in the Far-'ffest area. (**) Accordingly, a re- 
duction of 15 per cent in a manufacturing labor cost of 18 -oer cent 
would reduce the total selling -orice 'oy 2.7 ^ler cent, or an amount in 
excess of the hii^hest average tarofit. (***) Hence, manufacturers pay- 
ing low wages for direct manufacturing labor had a distinct competitive 
advantage in the market. Manufacturers continuing to pay high wages 
particularly those bound by the Union agreement in the New York City 
area were faced with operating losses. Workers, -oarticularly those 
that were not -orotected by r. union agreement, were compelled to accent 
lower wages to offset other nigher costs (****). 

The greatest lahor productivity was adraittedly in the New York 
area. Other areas, however, had the same or nearly the same relative 
labor prodictivity. (*****) For exaim^le, for "hand-made hemmed" ties 
the labor productivity for tne Par-West and Atlantic-Coast areas were 
both the s&iie, i.e., 79.5 per cent of the New York city area. But 
the total piece-work wage rate for this tyrie of tie for the Far-West 
area was 108.1 "ocr cent of the New York city area rate whereas the 
rate for the Atlantic-Coast area was 84. ^i ^oer cent of the New York 
City area rate. Moreover, the labor productivity for '"jnachino-maci e un- 
lined 2 piece shape" ties in the commuting area of New York City was 
almost equal to that of the New York City area but the total piece- 
work rates oaid in the commuting area were only 5^?. 8 per cent of the 
New York City area rates. Such conditions are important when consider- 
ing the weekly earnings of the workers. 



(*) Cf. Table XII. 
(**) Ibid. 

(***) Cf. v. 14. With four exceptions, all total piece-work rates 
in Lay 1933 in other areas for the major manufacturing opera- 
tions itemized by the Code, except "cutting" for the four 
re-)resentative ties were at least 15. S less tnan the rates in 
the New York City area. 

(****) Cf. :Rei3ort of Conference: Erie Nectavear Mfg. Co., August 2, 
1934, A-o-'endix "C" 

(*****) Cf. Tables No. VII and VIII. 

9857 



ail 



■||< 



O r^ 



9 a 



O (T i-i 

8 ai i 



t*\ r-t t^ Jt f^ O 

jH d to tA M 



KN PJ r^ €U ITt '^ 

id S' '■'• ^' d 



1^ o^ t\j 



9 if 



;ll? 



- J J CT 8 S ?. 



^O M O 



r^ J- fti 



K\ iH r— v£ r<-i o^ 00 



s- 



d (A lA 



o ir m vi> 



r^ ^ vD If tr 



I— r- If. f*-i eo o 



S 3 



a\ r^ 1^- 



r- 60 eo vD If ^ 



:9|S 

*-s "^ ^ 



o If in 

sis 



w r— ffv c\j 



a? 



OCMco (HiTir— f^ocy 

8r^ep (T\vi36or— "-o^^r- 

If ^ rH rH ^ 



ii 



9 J c 



S -J) 






« 7 



O no 

s 



Jll 



s 

a 



>1 . • K- 



o ^O 

8 IT 
If 






O If 



r^ jj- CT% O o^ "-O C\i 



CT% 0> O 0^ If 



a^ 60 ^ ir. (T. J- 
rA iTi .-/ i-D r-^ 



J* r— ■^ vc o '-i> 

fO rA d lA ^ (A iJi 



^ r— r-t "JS o "-o o- 

3(y W -:* -* 00 "^ 
CM r-t 



r4 ^ O OJ «0 O 

Qj CO ^ tA C\i CO 









& 










Sr 




















•a 










o 










s 


m 












3 






• 


•H 

a 










3 


•3 


^ 


1 


p. 


M 

o 


■*-< 


5 

•' 


• 


S 


£ 


mt: 


£ 






















♦• 


? 


sa 


s 


'^ 



« 

3 



■a a 
g 



IS 

-I a 

is 

Si 



II 



3| 



*» 3 
V EC 

^ a 



• o 

Jg 



■ai: 

o 3 

a-3 






a 

« 

' 8 

II & 

J 4 a 
o 

« « dl 
84 tn-H 

ail 



This disparity in tlis v/ages paid in tlie different areas of the 
United States courj.led with the fact that tne nature of the manufac- 
turing processes -lermitted the pl,-.nt to he moved easily and readily 
re-located, exil.nins the migration bo the low wa;^e areas and the 
chaotic conditions existing prior to the code in the marketing of the 
loroduct. Furthermore, due to the extreaie conditions existing in the 
three eastern manufacturing areas, i.e., the high wages paid in the 
New York .Citj area and the low wages paid in the comrriuting area of 
New York City and the Atlantic-Co-^st area, all s'^rving the eastern 
market centered at IJew York, the competition in that market was partic- 
ularly severe. 



9857 



3. -£z ::zi ::ic-OTiATiciTS. 

At the ince^pticr. of tlie effort to codify the irc.v.str?r, tlie differ- 
ent attitufes of the vprious groups of the industry were "bro"u^ht to the 
fore. Ikna^-ement did not -resent e. solid front on func^ziente.l issues, 
Tjarticularly rJ-ninroEi T?5^"es. Z'he previous vjistaole condition of the 
or:,ani2ation of inanagement ajid the limited field of activity of the 
trade associticn reflected the existence of differences of opin- 
iGn(*). I^.rge r.reas of the United States lacked any organizB-tion 
of Eanufacturers. Furtheimore, the ina.rketini, pr8-ctices eniployed 
in the competitive struggle for business 7?ere not conducive to the 
attainment of "onified action. 

The nenoers of the trade association in ITer Torh City rere 
particularly san^^uine concerning the 1TI?A. Ihsy vie^red this nevrly 
created industrial leglislation as a. means of ohtaining "better competi- 
tive conditions and pe.rticularly the staDilization of labor costs. 
Such leglislation r ould remove any justification for the continuajice 
of practices such as so-termed "contracting", including "hone-rorh" . 
They believed that the establishing of equitable v?age rates on a 
iiationa.1 oasis voul:, to a large decree, overcome the "previous "price 
war". The r::£jiufacturers in other areas, especis-lly those loc8.ted 
in the a.scending production areas of the Atlantic-Coast area, e.g., 
the St-tes of ITew Jersey, ?ennsylvs.nia and laryl^^id, endeavored to 
prevent the ena.ctment of sny lar- which --ould re.ise the T7ages of their 
workers to the level prevailing in the "unionized area of lies York 
City. 

The — orkers T-ere not organiged on a ns-tional be.sis. As pre- 
viously sta.ted the esrployeos of about 5C per cent of the manufactiir— 
ers in the ITe-rr York City area, vers irell organised in the United 
ITcckiTear Lakers' Union. In Philadelnhia, Pa., just prior to the 
code negoiations an attempt was im.C.e by another local "union to ob- 
tain collec'cive bE-rgainin;;, agreements vith the np.nufacturers in 
tiaat ares,, llo other recognized orge-nization of enrployees existed 
in the industry-. Labor also viered the ITIrA. "itn optimism. It 
so-dght a. g"ca.rs.ntee of weeldLy -ages sufficient for a sta.ndard of 
"decent livine", and the preservation and expansion of the gains 3.1- 
readj^ ob"fca.i:-ed "cnder "union contracts. 

A ner tr3.de association, the lien's IToclcT^ear L^nr.fact-j.rers' In- 
stitute of Azierica, Inc. -as organized to forniuls.te a code. Under 



(*) In addition to the -^ro'cco of ma-nufactuz-ers in iJev: York City, 
coaprisi:'! the Lien's ITeCkrrear i:a:nufacturers ' Association, 
there rere isolated gro-xps in other centers, e.g. in Los 
Angeles, Laltimore and St. Lotiis. Another tirade association 
had also been formed in 1322 but had nede little progress "up 
to the ti-e it ceased to be active in 1931. The men's I'eclarear 
lisji -.facturers ' Institute of Americe., Inc. --as formed in 1933 
to fomulate and present a code of fair comootition. 



9857 



-£7- 

its p.usDices e. rsroposer". coce of laii' connetition tths s"o.T3mitted to the 
ITaticn?! P.ecover;,- Acjniziistration. A foirsl public hes-ring was -ultiEi- 
ately h.elf. on Septembei- 14, 1933. It is pertinent to refer to the 
remarks of rr-jinond A. yalsh. Attorney for tlie Institute, s.t this 
hearin^ Tiho &ta.ted: 

"I thiri, as this liea.rin:. progresses, tiet you vill 

fine, it most amazing that the necl^rear industry, 
represented "by the inanufacturerE in the industry, 
shouJ.d itave presented a.ny code, one T'ith an appar- 



"It Tras, thought for a time that tts T;ould be un- 
aole to reconcile their differences, "bvit they met 
day and nir^ht and ironed c"at in a co'pproEised 
m £.2mer, in a give and t?l;e T.-ay, these various 
views and conflictiivi, factors of the industry, 
Eo that the code you receive today is presented . 
"fay the ITeckwoar Institute Tith the approve.! of 
the memoers of that Institr-ite, the ^lerfosrsliip 
of Thich is thoroughly anJ ti'oly representative 
of the industry. " 

The proponents of t-xe code, inflv.enced oy ths manufa-Cturers 
in the ITer Torh City area, ooxind "b the Union A^.ro«enent, ha.d concluded 
ths.t the only rry to remove the unfair cor?3otitive conditions pre- 
vailin;^, i:. this indiistry Trab "by est^hlisliinp inir.i.-nun! i-ates of pay for 
the ES-jor n'.r.nufacturin: opei?.tions. Ajid ac^ordinply proposed the 
lolloTrinp r.ininiujn hourly r?-tes for certain occupational classifica- 
tions: 

Sill; cutters 

Linin^ cr.tters 

O^pei^tors, r^e.le 

Operr.tors, fetaale 

Turners 

Stitchers 

le.'bel sorcrs 

ProsJ^ers, ..ialo 

Pressers, feiTiale 

A nininua ~a^e of 35 cents "per hour re-s proposed for all other eniployees 
en^a^ed in ...'.? n-ixf a cturin^- tiie product. 

It is also i_~^ort-?jit to note cl:a.t although the piece-work vrare 
pa.jTnent Tystem v/as cenei^lly prevalent throu^liout the industry (except 
for"c:jitt3rE'i), i:s.na-;-enient hs.t elected to propose occirrational time rates. 
Apparently i:sna£eL2ent considered tl^t a pioce-Tork rate r^ige schedule 
ras not dcsii-able as a :i?ticn?.l Ir.r for an industry of trhs n?t-are. (*) 



(*) Cf. ?;eport to the President, dftod '.hrch "34, 195---, accocpanying 
the suomis&ion of th.r Tjro'iosed code. 

9357 



- 75 


cents 


"cer 


hour 


- 60 


n 


ti 


II 


- 50 


n 


It 


II 


- 40 


n 


II 


II 


- 55 


R 


II 


n 


- 4C' 


n 


II 


II 


- o5 


It 


II 


II 


- 50 


II 


n 


n 


- 40 


n 


II 


II 


. ".roT 


>osed 


for i 


= 11 o- 



-28- • 

As the hearing" progressed, it vras evident th?.t the foregoing 
proTDOsals did not represent ujianimity of opinion ainonsi: the manufactiir- 
ers. Within the twenty-four hou.rs irirnediately preceding the opening of 
the hoai-in^;, a ^^,roup of manv-fac tuners located in, "Jew York City Imd 
agreed to protest the proposed schedule. They stated that the proposed 
rates vrere £0 lov as to in.iin their enterprises. The spplcesraan for this 
groiip stated tlis.t "more than 100 manufacturers, producing more tha^n 
16 million dollars Yrorth of ncclj/ear amroa-lly and employing 4300 wage 
earners join in this protes.t." It '.vas cl3.imed tii3.t these woi-kers 
vrere then ocing paid wages fs-r in excess of the proposed minim^■lIIl 
rates, e.g., "operators" were heing paid at the rate of $1.30 to 
$1.75 per hour, "turners" at the rate of .$0.70 per hour, stitchers at 
the rate of $0.60 per hour and"^Tressers" at the rate of $1.50 to $1.75 
per hour. (*) In sn.ch circumstances, the proposed law it was argu.cd 
would not eqi-'-a.lize corrpetition for the ras-nufactiirer paying higher 
rates, nor would it he of muchhenefit to his employees. Manufactu.rers 
in the ile\7 Yor'" City area, hound hy the Union Agreement would continue 
to pay the high rates. Other ms.nufacturers vrauld not he ohliged to 
pay more than the existing rates nor in any event moi'e than the proposed 
rates. This would give them an initial adva/ntage in lower imit Is-hor 
costs. 

The ot>ier ra3.nufa,cturers disapproved of the New York City area 
rates and continued to demand the lower i-ates proposed in the 
code, contending that the workers draxm. from' local lahor pools 
outside of the T.ex; York City area were not as efficient as the New 
Yorh" City workers. (**) Up to this time, only hourly wage rates ha-d 
laeen proposed. If, in the course of negoaitions, these minimum 
time rates were raised to the level of earnings ohtained from the 
llevi' York City area Union Agreement piece-vrork rates, then manufac- : 

turers in other areas, provided they did not wish to su.ffer the loss 
of business, woi-.ld do ohliged to at least attain .the productivity 
prevalent in the plants of the Hew York City manufacturers, unless 
they hs.d other corrpensating costs. 

A m£\nufactu.rer fro^n Philadelphia supported the rates in the 
proposed code. In this connection, it should he noted that a short 
time provioti-s to the hearing a strike in the Philacelphia area had 
been settled and a piece-vrork wsge schedule had been determined iipon 
through arbitration. Although all manufacturers in this area, about 
twenty-eight in number, lie.d accepted the piece-work rates at the 
arbitration only five or six had signed union agreements. Manufacturers 
located in Maryland reserved the right to be considered as part of a 
Southern area -irovided geographical differential rates were approved. 
The so-termed Souther-n I ianufac turers proposed rates 20 per cent lower 
tha.n those for tlie Ntjr thorn manufac tu.rers. 



(*) It is assri-i.ed th^t these rates were average hourly rates comipu.ted 
on the basis of the existing piece-work rates as prescribed by 
the csisting Union Agreement - See Appendix "B". 

(**)Cf. Peport to the President, dated iferch 34, 1934, accompanying 
the su.bmission of the code. 



9357 



-?3- 



At the lublic lie-?.rin^^ the re-jTcsentatives of lalior protested 
the -oro'oosed \7a^:e rates v.'hich 'jor.lc. permit "a differential of hundreds 
of per cent ■betv'een the v/a;?,es paid and contracted to "be paid to more 
than sirty ner cent ox the v.'orkers in the inc.tistry". The proposals of 
these represeiitativcs of labor verc not offered as a rationalization 
of the problem of geofjra-^hical or sex dif :^erentials out rather repre- 
sented the elimination of all differentials and the incoi-poration of 
rates of ^ay on a na.tional "basis patterned after the Union Agreement 
in the lie-,; Yorh City area and providing for an increase in the m.oney 
ea^rnings of the workers on the basis of the proposed shorter code week. 
Weekly rates rather tiia/n hourly rates or piece-vfoiv: rates were proposed. 
Sn.ch a proposal was significant. It ^.■ill be recalled tna.t the Union 
Agreements had '"rescribcd ra.tes on a straight piece-vrork basis. A 
straight piece-',;ork wa^'c paj'raent system provided no continuity of em- 
plo3.TRent and con£eqr':antly little sccarity insofar as the ma.intcnance 
or increasing of purciia-sing power for any long period. (*) Gu-aranteed 
minimum T^eehly wages, £.ltho\\gh for a corxoaratively short pierod, 
offered niore security than hourly or piece-'work ra.tes. At the same time 
it would a-T^car tlia.t the representatives of labor also sensed the 
difficulties of ac'i.iini storing a national law on a piece-work basis in a.n 
industry of thr.s clTa.rracter v;here cr^.nged in styles and shs-pe a/nd methods 
of manui'act-are continuously dema.ndcd the determination of appropriate 
rates of pay for the worl':err. a.ffected. 

The weekly rates proposed b:/ tne representatives of labor were 
as follows: 

Cutters - 43 dollars ner week 

Boxers 

Trinr.iers 

Operators 

?x'e s *- e -"s 

Tiirners 

iLa.belers 

Finishers 

These re"^resentatives also' proposed S- 35 hoiir vreek instead of the 40 
hour week, in thxe code submitted by ma.nagement. 

The niiinerori-s discussions finally res^clted in a post-hearing con- 
ference at Philadelphia, Pa., on October 6, 1933. ]ife.rly in the proceedings 
the :T?A representative, Lr. Gporge Vi. Taylor an'ioimced: 

"V,'c must consider differentials. V/'o are seeking to 
effect a sta-ndard of fair cor,Tpetition for your industry. 



- 17: 




- 17^;- 




- 40 




- 40 




- 27': 




- C7'^ 


n 


- 2'?^: 


ir 
































(*) Some msuuifacti^rcrs ap larontly had diffictilty in obtaining materials 
due to their lack, of adequate working capital. Cf. Report of 
Conference: "]rie ilockwear Lfenufacturing Con--iany, Angust 2, 1934, 
A-o?endi:; "C". 



0857 



-30- 



v/'e I'sve got to thiiilr in terms of dif ferentie.ls 
and minimrin v."3.£'es."' 

Follov/in^' tlr„s statement, a representa-tive oi" the llev; York City S-rea, 
ms-ntLfa-ctu-rcrs proposed that inasauch as the piece-vorl- wage rate system 
vras {^'enorall;- preva,lent in all area.s of the industry for manufacturing 
operations tlia.t such opera.tions shordd he determined and then wage 
ra.tes, incl^^ding any differentia.ls, should he agreed upon and estab- 
lished, riie ITEA. representative concurred in this ":iroposal, stating 
tiie.t in his opinion uniform rates would tend to promote fair conpetitive 
conditions, particularly in respect to ujiLt direct labor costs. After fur- 
ther consideration of the procedure, tlie conclusions reached were summed 
up by Dr. Baylor in his sta.tement as follows; 

"For yoiir in'forma,tion, I am reporting to yoii an 
agreement that v;as reached with respect to wage 
rates, for insertion in your code, and one or 
tv/o points vdll be addedt. to supplement this 
arrangement. As far as lia.nd ina.de ties are con- 
corned, Philadelphia rates shall be a.ccopted as 
the minimtim rates payable in the industry (about 
80 percent of the IJev,' York scale). 

"As respects ma.chine made ties, the minim.-ui:i rates 
tliat are payable are to be 7^ -oer cent in excess 
of the Philadelphia scale. With that hurdle past, 
we have the cutter problem to decide." 

The conference then proceeded to- discuss the proper rate for a "cutter" 
and finally decided on a rate of $35.00 per week. 

Pollov;ing this conference anc' after further negotiations with 
the officials of IIPA, the Men's Tecl^fcar Ivanufacturcrs » Institute smi- 
marizcd its revised proposals in a modified code, dated ITovember 20, 
1933 (*). The last paragi-pah of Section 5 of Article IV made provision 
for the deterrdnation of v.'age rates for imschedulcd operations and styles 
not covered liy the code in the following raanner: 

"'.There rates for operations or for styles not 
covered 'oy the above classifications (the.peice- 
work rate sche(?;alos) becam.e necessary, the Code 
Authority, with the rp-:iroval of the Ac'jninistrator, 
snail establish proper minimtun rates consistent 
with the above. " 

This provirii-n, of coarse, contained several imperfoctions. In the first 
place, t..o ncr'e did not completely specify the operations, the stylss, 
nor the r.lmpes covered hj the schediile. And in case of a question", it 
might be claimed that no further rates were "necessarjH". Parthermore, the 



(*) See Ap-:endix "D", 
9857 



-31- 



Code Aii-thoilt:. consisting of nE.nufs.cturcrE v;crc en:ipo\7ored to determine the 
rates, EaVojcct of course, to the a-ipro-v-^.l o .' the Administrator, Hq provi- 
sToh 'vr-.r. m?de for the procedra-e to he follo'vcd pendin^j the formal deter- 
mination of an ujischeduled rate, reithsr was any provision made for 
collectivo oarj-^ainiiig with the v;orkers in detezTAining the new rates, 
nor' the assv.rance of le-hor representation on the Code Atxthoi'ity. This 
proposed^ code also did not validata in s;;necific lang^ja-gc the higher 

'wage rates in e::isting collective agrcrraents, nor provide for the main- 

'tehance of existing wages of all worhers. 



Foilov.dng the stihmission of the revised code dated rovomhor 20, 
193.?, there v/ere n^jnerous d.iscussions involving the code lP.uor provi- 
sions. The chief issues affecting "vifa-ges above the minimum" con- 
cerned the rate differentials for geogrs'.'-ohical ares.s, the proced.ure 
for estahlishing rates for Uiischedulec. operations and recognition of 
'the wage and hoivr "n^ovisions containod in e::isting collective bargaining 



agreements, A detailed res^ame of all sue-: negotiations would merclj'' 
enrohe.size tiie conflicts ;TreviousVr mentioned, and .worild. add nothi?ig rtiater- 
ial to that already discussed. Over four months later, however, on Ivferch 



ii 



, J. .' ■_! ^ , 



a code for this indiistr^.' was finally approved. 



CODI 



^yiSIGlTS. 



The ^■^rovis.ionf. for "wages above the niihiniuxi" 'in tne approved 
Code for the .ue;:'s .Kechwear Industry- are cohtaine'd in Article III 
These provi^sipns consist of: 



Wages. 



1., , Pgi.rg-gra'jh- llo. 1-, ■ Section.- 5; ' ' A •oicce-Y;ork rate v/age 

schedule for certain manufacturing o"oe:;ations for sis 
t^r'os of t ics , as follows; 

"The follov;ing schedule of minimvia -^iece re-te w3-ges 
sl5.11 be standard for the iiadustr:' and, except as 
hereinotherwisc provid^ed, no mcmcer of the industry 
sha.ll pay less tnan the follo'-.ing "rates. 



hand-ma'-'.e tics, heir.^.ed.: Per dozen 

Hemming. $0. 13 

Piecing .03 

Slip s.t itching .45 

Piecing -pressing .0" 

Pressing .10 



Hand made ties, lined.: Per doz. 



Sewing margin lining 

Piecing. 

Turning, pockets. 
Pressing "oochets 
Slip stitching.. 
Piece pressing.. 
Pressing 



¥0.20 
.03 
.04 
.04 
.45 
.03 
.10 



I.ia chinc-marle -oocket 

lined: 
Ore cve.\jxv.g: . ' 

Lining... 

Piecing 

running up '. . . . 

Pocket turnin^g 

Poc]:ot pressing 



M.C1 chine-ms.de unlined 2-nieco 



Per dozen 



$0.0975 
.0525 
.0775 
.0275 
.0275 



Hemning. 

Piecing 

kuirning- i.ip.. 

Piecing pressing- 
Turning 

Pi-essing 



Per Doz, 
$0.0975 
.0325 
.075 
.0275 
.08 
.08 



9857 






Pressing 08 

Turning .08 

Machine-made margin 2-piece 
shape; 

Piecing pressing ■. . . .0275 

' Sening lining .1825 

Piecing . .0325 

Running up 08,5 

Turning and pressing. . 
. pockets ........... .075 

Turning .. . .,. .085 

Pressing 05 

Heck Btitch-ing 0335 



Heck stitching ... .0325 
French tie: 

Se'Ting points and ) 

pi-ecing ) .10 

■ Running up 'jith stay).. 

T-irning 65 

Pressing .:. ... .05 

Press. Joints and • 

joinings .02 

General: 

Wide hemming, one side. 0325 
Uide hemn.ing, L)oth 

sides ,055 

Tackers 0325 

Lahel se\7ers 0425 



Machine -Made, open Margined Lined large end, French, small and 

closed, short pieced tie. 

Per Doz. 
So'^ing margin lining on large end. small and French, piecing 

and running up $0 . 14-j " 

Turning .• 05 

Pressing , ,05 

Turning Po cket , . . , , , , 01-|- 

Pressing Pocket ' 01"2 

Tacl'ing small end ,, 01 

(The a'oove rates shall apply for ties selling at Wholesale at not 
more than Tto and 25/lOC Dollars ($2.25) per dogen.) (*) 



2. Paragraph Ho. 2, Section 5; A formal procediire for estahlis h- 
ing I'ates for unscheduled ope-^ations a,s they hecome necessary and an 
informal m.ethod for determining rates for unscheduled oipcrations, 
pending ;^he ap-oroval of the rates "by, the formal procedure as follo'^s; 

"'There rates for operations or for styles'not' covered hy the above class- 
ifications, 'become necessary, the Code Authority, suhject to the approval 
of the Administrator, shall establish proper minimum rates consistent 
with the above. Pending the adoption of piece rates for styles not covered 
by this Code, members of the industry shall adopt piece rates for the 
manufacture of such styles consistent with the rates contained in this 
Code." 

3, Paragraph 3, Section 5: A provision permitting employers to 
devia.te from the scheduled minimum piece-work rates provided the total 

(*) The provisions appls^ing to "llaChine-Kade, 'dpsn -margined lined 
la,rge end; ' 'French, small a.nd closed, sho'rt pieced tie" were incorpor- 
ated by AQendjnent Ho. 2, ap-iroved J.,j^ne 15,- 1934; ' 



9857 



direct labor cost for an item was at least as much as the stun of the 
individual operation rates prescriTjed l3y the Code , as folloips: 

"If the total direct later cost of any member of the Industry for the 
manufacture of each item under the provisions of this Code is equal to, 
or greater than, the total direct labor cost, calculated in accordance 
with the piece-work rates above indicated, for tie operations actual!" 
perfoi-ned by such member of the Industry on such item, then such memher 
shall be deemed to have compiled with the provisions of this Section." 

4. Section 6: A minimum veekly rate for a "cutter ",, as follo'Ts: 

"No cutter shall be paid at less than the rate of thirty-five dollars 
($35,00) per vreek." 

5, Paragre^ph (a)i Section 8:'' A provision reco^yiizin,.':; the validity 
of the raA'e or hour provisions in p collective agreement concluded prior 
to the approval of the code, provided such -"age or hour provisions are 
more stringent than those contained in the code , as follows: 

"Where a-n employer is boimd by the terms of a collective agreement, 
concluded prior to the date of aiDproval of this Code, to pay o-ther min- 
im-ojii piece-rpte yages higher than those set forth in Article III, Sec- 
tion 1 to 6 inclusive, or to ohserve other hour^ lower than those pro- 
vided in Article II of this Code, nothing contained in this Code shall 
he deemed to replace the terms of such collective agreement, unless said, 
agreement is cheJiged by mutual consent.- In no case shall such changes 
result in rages lover than those prescribed in Article III, Section 1 to 
6 inclusive, or, in hours longer than those prescrihed in Article II," 



3857 



-54- 



6. Pf^^rasrapii ("b) , Section S: A proh i'b ition a,;;ai:-ist any less 
striiifi'ent ':ja.g:,e or hotir proviriions i'l an:' fixture afi-reenent made pursviant '' 
to the ITIM 'between errployers anr'., e:''rolo:'-ees , as follons: 

"An; a£;reenent "betveen employers and enployees made in accord-ance 
with the iJatipnal Industrial Recovery Act uay f i:: other i7a^'';es and 
• , hours than those set forth in this Code, provided that no such 
a^'^ireei'ient ma;/' fix ma::iv.raji hours in er.cesr. of those provided in 
this Code, or nininun piece- rates nnd \!&res lo'Ter.than those provir- 
ded iri this Code, " 

7. Pa.ragrs.ph 3, Section 2: A i^rohioition a'.'ainst constru.inr; the 
code mininrija 'Tafi:es as ma::ihpjj.i ',7a;';:es and a reouirernent that the Code 
Authority shall uahe- a. report concerninfr^ such, as .follovrs: 

"None of the provisions of this Article sh£ill he construed or 
applied -in such /.lanner that :the niniiran ua^-es provided herein 
hecoue maziinuii nag-es, and the duties dele';r.ted to the Code Autho- 
rity shall include a report vfith respect to the question of ■'ihethef 
the ainiiiun \ia.Qes provided herein are in fact tendin-;-,' to hecor.e 
. na::inuia v,'a.':;es." 

S. Paragraph (c), Section G: A prphihition ar"a,ihst reducinr,' 
piece-r/orl: or hoiirly i-ates of pa.y in effect o n October 5, 1933» except 
"by rntitual consent bet^Tcen the enplpy er an d his enployees suhject to the 
appro V3,l of. the Acxiinistrato r. as follo-rs: ■ 

"In no case shall piece-rates and/or hour rates that ^Tere hein,'^ 
paid on Octoher o, 1933? i-'^ erccess of tiie rniniriuji provided "by this 
Code he redf.ced, except upon nutual consent oet'-'een the employer 
and his evaployees, and the approval of the Acjninistrator, " 

9. Pa.rca;;rrph (d) , Section S: A clause recurinr the postinr< of 
the code rates and the rates e::istinr-v in each Plant on Octoher S, 1933 
and further reoviirin- each employer to file an identical list of its 
Octooer 6, 1933 rc?,tes njth the Code Ap-thorit:'^ as follo'7s: 

"In every neclx'ear plant in the industry the employer shall post 
copies of Article III, Section o (c), to::'ether -fith the piece-rates 
aoove the niniiiu;.! piece-rates in the Code, prevailing' in such plant 
on Octoher 6, 1333 1 ^-i^f'- each employer shall also file nith the Code 
Authority an identical list of such piece-ra.tes prevailing- in such 
employer's plant on Octoher 6, 1933." 

P. DEPICIEHCIES or THE CODE PRGVISIGIIS 

Provisions for "r/afjes a.hove the mini; ram" '-ero incorporated in codes 
of fair competition to effect the pu:rposes of the ImIHA., one of iThich nas 
to increa-se "purchasin'y po'jor" anc. a.ccordin-^^ly to provide a control for 
those i.7a.-es lyiiich rere not s-afficientlv re^u-lated 'oi: tlie "minimum '7age" 
provisions. (*") In so far as codes irere concornecv "purchasing poner" 



See footnote on next page. 
9S57 



-35- 

was measured in terms of tlie -rorlrer's periodic money earnini-^s. Conse- 
quently, any imperfections in the code provisions mif:ht tend to defeat 
the purposes of the I'TIIIA. and adversely affect the mone"/ earnings of the 
i7or];e:.'s. 

An examination of the provisions, for "na;;es ahove the mininur:i" in 
the Code for the iien's i^eclarear Industry discloses numerous deficiencies, 
to i,7it: 

1. There was no general provision for the maintenance of weekly 
earnings . 

2. Minimum piece-worli, hourl,y and weelrly rates prescrioed "by the 
code did not increase or even, maintain the pre-code rates of all 
workers, 

3. The formal procedure for 'estaolishin/;; rates for operations 
not sciiedul-ed hy the code did not coiipletely define the "basic con- 
ditions nor clea.rly state when a new ra.te wa-s considered necessary. 
It was also impractica.l of operation in, an industry of this chara- 

• cter. 

U, The informal or provisiona.l procedxire for estrhlishin^,' rates 
for operations not sclaeduled "oj the code tended to defea,t the 
purposes that' induced the ihcor;oorr.tion" of the foima.1 procedure;,- 

5* T^'i^ provisions perm.ittini^: a raanufa.ctu.rer to pay less than the 
prescri^bed minimuii ra.tes -for individual opera^tions provided its 
"total direct la"bor cost" was at least equa-1 to the sum of the 
. , •■ in.di'Vidual code minima, permitted evasions of the code that were ■■ 
difficult to detect or prove. 

6. The code failed to precisel"'' define t"ae different opera-tions 
a-nd oacupa.tional classifications of workers, 

7. The code failec to desir.'nate the da,tes for filinjj the two wage 
reports specif ica,ll;A neritioned, , ' 

S, The code did not provide that modifications of the wage provi- 
sions of the code had to "oe accomplished through the processes of 
collective hargaihing. 

As staited in itkzi ¥.o, 1 there was no genera.l pi^ovision for the 
maintenance of the weekl;- ea.rnings of the -'orkers in this industry. 
Conseq"aentl;r there was a. large group of workers whose wai'i'es were not 
protected "by a.ny provision other than the general provisions for mini- 
mum wavTes. This ■".•rouot com'orisod em-jloyees e n-'':e ' -':ec. in clerical, office. 

(*) IncreE'vSing "purcha.sing power" reouired that periodic money earn- 
ings he increa!iG-. faster than commodity prices a.dvanced. Cf. IIEA Bull- 
etin Ko. 1, June lo, 1933* The minimixm wa.ges set ''oy the all-inclusive 
minimjii wage provi^; ions in codes vrere construed to appl;,'^ to the lowest 
pre-code wage scale class of emplo;/ees in tlie industry or trade, Cf. 
Paragraph ITo. 5 of the Er-ecutive Order of July 9. 1933} a.pproving Code 
Ho. 1 for the Cotton Te.xtile Industry, Also Section k of Article II of 
the genera-,1 or ""basic" code - See NPA, Office Llemo ranc'oim No. 25I, July 

10, 193U. 

SS57 



-36- 

accounting, selling and deliver:^ activities and in other nantifacturing 
and non-manufacturing operations. Such employees \7ere generally paid 
on a weekly'' "basis. But there vas no general provision for the main- 
tenance of veekly vrages. The prohiloition against a reduction in piece- 
-YTorlc anc" hourly rates did not maintain weekly earnings in the face of 
the .reduction in v-'eeklj'' hours, 5\j,.rthernore, such employees "ere not 
organized and consequently did not have the protection of collective 
ha^rgaining agreements. 

Item TJo. 2 states that the code pi'ovisions failed to provide for 
an increase in or even the maintenance of the pre-code rates of pay of 
all Tforkers, The code .iinimujn piece-vrork uage rates for manufacturing 
operations for "hand-made" ties were less than those estahlished "by the 
union agreement uith the manufacturers located in the Tie^i York City 
area. The NEA representative at the post-hearing conference in Phila- 
delphia, Pennsylve.nia, on Octoher 6, 1S33> intimated that the agreed 
rates nere ahout SO per cent of these union rates (*). And nhile the 
code miniuum rates for "machine-made" ties nere 7«5 P^^ cent ahove the 
rates established hy the Philadelphia arbitration, they were, neverthe- 
less, belo',7 the corresponding union rates in the Her; York City area. 
Consequently, the piece-vrork rates for manufa^cturing operations esta- 
blished by the code, did not maintain or increase the piece vrork rates 
nor the Treekl],^ earnings of employees affected by union agreements in 
the I'evi York City area nor of other einployeGS who had been paid rates 
equal to or aboiie the code rates. In thG I'levr York City area alone there 
were ^^,300 employees affected by union agreements. This number repre- 
sented aboLit 50 per' cent of the indiistry. , _ 

The situation concerning the enplo3''ees engaged in the aanufac- 
turing processes in Philadelphia was not essentially different. While 
the Code provisions raised the rates for "machine-made" ties above 
those established by the arbitration just prior to the code negotia- 
tions, they did'not increr.se the rates for "hand-nade" ties. "Hand- 
made" ties also constituted the greater volxime of production. (**) 

Defects in the formal procedure for . establishing rates for opera- 
tions not scheduled by the Code have been pointed out in Item Ko. 3« 
The frequent changes in style and shape of the products of the industry, 
induced by consu.mer demand, necessitated cha.nges in the methods of 
manufacture. Changes in manufacturing operations recuired the determi- 
nation of appropriate rates of pay for the s.ff ected workers. The na,ture 
of the market did not permit a long period for the production of the fini- 
shed product. Accordingly', an-" procedu.re for the determination of 
piece-work rates for u.nscheduled operations had to be sufficiently , 
elastic and speeder to allow the manufacturer to keep pace with the . 
continuous changes of the market and at the same tine readdly applicable 
to insure its universal application to all em-oloyees and employers 
affected. ' 



(*) In 1935 "t'-'^e schedu.led code piece-work rates averaged 31«1 per cent 
less than those of the ."first grade" Kew York City shops under the union 
agreement and 22.5 per cent less than those of the "second gra,de" shops. 
See Appendix "E". 

(**) Cf. Report to the President, dated liarch 2k, I93H, accompanying 
the submission of tlie Code. 



9857 



-37- 

A:a ind-astrial Iuf to accom-olisli sucl-i olDjectives, remotely controlled 
at a center removed from tiie origin of the ciian;:^es in o-oerations, was 
admittecll:/ difficult to exnress in language. In tlie first -■olace, it re- 
q-airec" con reliensive soecif ications of tlie oase conditions, i.e. the --)ro- 
ducts, tl'ieir )arts and the manufacturing operations to which the scheduled 
rates .r-T:lied. The Code did not completely define these "base conditions. 

Pcragraioh 2 of Section 5 of Article III riresented the formal method of 
"orocediire "\7here rates for operations or for styles not covered Coy the 
schediile in the code) "become necessrry". The Code Authority, however, 
. h^:s^iS.-Tiarently not specifically em-nowered to cetoand tliPt a rate for: any un- 
scheduled operation v^as necessary. (*). Therefore a manufacturer could, 
under his own inter-nretation of the s^oecif ications of an item, consider tl'^t 
a new r.r te was not necessary and disregarr" this -orovision, nroceedin^; as 
thor^c,h the o-oeration, in the o-oinion of the manui"acturer, was loart of t"/.e 
cede schedule. It ?rps also -Dossiole t^^at the Code Authority had no Icno^-- 
ledge of the new operation. Or, if a new rate for a known change vras con- 
sidered necessary (Dresumahly by the Code Authority), the Code Authority , 
might trhe so long in arriving a,t a rate acceTjtahle to the Administrator, 
that the -iroc'u.ct Tfoiilr" he completed and sold hefore the rate was approved. 
Moreover, the code cid not malce any provision for a newly a-onroveG rate to 
he a-T3lied to a product :na,nufactured during the ^rrocess of negotiation. 

Item ITo. 4 refers to the defects of the informal or -orovisional 
method for establishing rates for or)erations not scheduled hy the code* 
In this rega/rd. the same criticism directing attention to the ahserice of 
complete s-oecif ications of the i^roduct. or the oioeration annlies equally 
as well to tiie clause -orescrihing the informal method. This method per- 
mitted :nr.nui"acturers to ado'ot iDiece-work rates "consistent" V'fith rates 
contained in the Code, ■'lending the determination of "-iroper rates h-/ the 
formal method. And in the absence of any aua-lifi cation to the contrary 
in the Code, the 'man-af acturer, in his own oninion, would undoubtedly 
determine if the rate established, was "consistent", at least for such time 
as it rer.ie.ined unchallenged. 

The deficiencies of -oaragra-oh 3 of Section 5 of Article III are 
referred to in Item i'Jo. 5. This provision relieves a manufacturer from 
paying the minimum rates for individual operations scheduled by the Code, 
provided the "total direct labor cost" is not less than the sum of the 



(*) Par? _:ra,'ih (j) of Section 7 of Article V emiDowered the Code Authority 
to designate a Hate Committee as folloi,Ys: 

"To designate three reiiresenta tives, who, together with one 
designated by the Labor Advisory Board to re-oresent Labor, shall con- 
stitu.te a rate coMnittee, which committee shall reT)ort to the Code 
. Aut"'orit:f with res-oect to the provisions of Article III, Section 5. 
Seco-.xiendaticns of siich Rate Committee shall become effective as a 
"lart of this Code upon the recominendation of the Code Authoritj" and 
the a;-nroval of the Administra.tor after such notice' and hearing as 
he ma.y -orescribe." 



9857 



-38- 

individual -unit oiDeration rates m.at:ing up tlie "total direct labor cost" 
of tlie entire item. In other words, a manufEcturer could loay 20 cents 
more than the minimum scheduled rate for one o^erp.tion, e.g. , "sliTj-stitch- 
ing", iind reduce the rates for one or more other oi?erptions hy an equal 
amount. Such a tolerance -ol?ced a handicat) on the bargaining riower of the 
workers. For exarmole, if a scarcity existed in "slii3-sti tchers" and the 
manui"acturer was obliged to pay them higher rates than the Code minimxm, 
the other r/orkers might be coerced to accept lower rates than the Code 
minimum. Again an entenorise might arrange its o-nershi-n so that some of 
the owners, engaged in the actual manufacture of the product, would be 
■paid relatively high rates of -Day. Their wages constituted Toart of the 
"total, direct labor cost". Other eirtnloyeer. might then be coerced into 
acce'Tting lower rates to comnoensate for the high rates naid to the OYmer^- 
worker. [Eie Code also did not define "total direct labor cost". Con- 
sequently its extent was largely left to the OTjinion of the employer. 
Pinallj'-, sxich an arrangement of -varying ra.tes for cUfferent items ov even 
for the same _ item made difficiilt any proof in case of nn alleged violation. 

Item Eo, 6 draws attention to the failure of the Code to clearly 
define the different operation and occupational classifications of workers. 
For exauT3le section 6 of Article III of the Code established a definite 
weekly rate of ru y for a "cutter" but failed to define the duties of a. 
"cutter". Several -narts of a tie reouire "cutting" operations, e.g., out- 
side fabrics, linings, facings and swtches. There is customarily a con- 
tinuity of other operations in connection with the actual "cutting" of a, 
fabric, e.g., laying .u-o, marking, shipning, -licking Vio, and bundling. In 
some areas o-oerations other than actual "cutting" were considered -oart of 
the "cutting" operation. (*) In other areas a "cutter" only -oerformed 
the operation of cutting. Tlie Code, hov/ever, did not -Drescribe specific 
rates of pa-y for such OToerations as laying-up, marking, ship-oing, ^sicking- 
uv and bundling. Hence, mamifacturers tha.t heir" to a limited interore taction 
of "ciitting" could be considered to have com-olied with the Code, if they 
paid em-iloyees in these OTjerations the rates xirovided by the_ minimum wa^e 
provisions. In such cpses, the affected emr)lo3''es increa.sed the group for 
which the Code offered no safeguard to maintain weekly wages. 

Tliis -provision establishing a minimum wage of '''35.00 ver week for 
('cutters" a^lso did not tend to maintain or increase the money earnings of 
all such em-iloyees. For examn^le, "cutters" affected by the Union Agree- 
ment in the Hew York City area had been paid $50.00 ner week. And --hile 
data are not available, it would seem safe to assuime tlmt at least 50 -lev 
cent of 8,11 "cutters" were employed by manufacturers in the 



(*) Cf. Article Fourth, .p., 4, Agreement between Men's Neckwear hanu- 

fa.ctxrrers' Association' of Ifew York, Inc. and United l^^eclcwear Cutters' 
Union, Local Nd.::5939, September 1,' 1934, reading as follows: 

"Laying, cutting, sorting and folding of all nectoirear cloth-, 
exce-oting knit goods and grenadines that run in straight, narroxT 
strips, not sha-oed anc" run less tlian six inches wide, shall be 
done by Union cutters. Only cutters shall do laying, cutting, 
sorting and folding. I.:ufflers and reefers shall be includ.ed in 
the foregoing. " 

9857 



-39-. 

Nevr York Cit;- area under union a/;;reerients (*). It uould also appear 
safe to asstvie that "cutters" in other areE.s received more than $35«00 
pel' ■'■'eel:, inasnuch as rates in ev.cess o:" this code minr:.Tam v;ere teing 
paid in postcode period in these areas (**). 

Itei-i Ko. 7 refers to the deficiencies in para^jraphs 3 and (d) of 
Section S of Article III. >Io definite^ tine v;as stated for the filing 
of the t^.TO reports prescribed hy -these t'jo paragre^phs. A pronpt and 
detaileo report shovdnc the effect, of the application of the nininmi 
uage rates -fduld have proved heneflcial in arriving at a speedy deter- 
nination of the a6-equacy of the provisions. Lil:e'7ise, a detailed list 
of i-rage rates e.-istinfc on Octooer 6, 1333 » ^'^- each plant \70uld have 
served s. siiilar purpose a.s ijel.l as a "bsis for estaolishing the vali- 
dity of an alleged violation. Of course, the KEA could have demanded 
any statistical data in respect to an industry under suo-section 3(3') 
of the HIEi, out frequently nenhers of Code Authorities and the Admini- 
stration, itself, fsdled to appreciate this po^er and individual em- 
ployers veve largely gu.rded "by the specific language of tne code. 

Finally as stated in Item ITo. S, the Coda did not provide that 
any modification of its v/age provisions had to "be accomplished thru 
the "orocesses of genuine collective 'oargaining. 



(*) The proportion o:" "cutters" to other manufac-turing employees nas 
pro'bat)!;'- greater in the Ne^ Tor]: Cit;;'- area than else-rhere inasrTuch as 
the "cutter" in that area performed otl-er operations in addition tg 
the actu3.1 "cutting!'^ • 

(**) Cf. Tr.ole llo. XV. 



9857 



-40- 

'. , CHiiPTER II 

EXPERIENCES UKDER THT^ CODE 

A study of the experiences vmder the code for the Men's Neckwear 
Industry insofar a.s "Wages atove the i;'inira\D:!" is concerned, invites at- 
tention to three major issues: - first, the' effects of the Code on the 
increase in or, the meiintenance of the money earnings of the vorkers; 
secondly-, the effects oi the Code oh the leveling of the pre-code geo- 
. graphical r/age' differentials; and thirdly, the propriety of an industrial 
statute of this character, prescrioing a piece-work wage payment system. 
The conflict regardin;^ the extent of operations included in "cutting and 
the alleged evasions of the provisions for the maintenance? of piece—work 
and hourly rates, although of lesser importance than these three major 
issues, v:ere significant in the administration of the code and t-m "be 
discussed cJso, 

A. THE EPl^CTS OF THE CODE OK t._OiraY EARIIKGS -; 

Two tests present themselves in determining the efiect of the pro- 
visions on the money earnings of those workers vrhose r'ages were controlled 
"by the provisions for "Yfeges ahove the iVanimum", to i-rit: 

1, rJere the wage standards of collective taorgaining agreements 
in force on uarch 24, 1954 (the date of a.pproval of the code) 
undercut? 

2» TTere post-code piece-T'ork and time rates, more than, equaJ to, 
or less than the prescribed minim.um rates? 

The first of these two tests may be disposed of briefly. Except in 
a fev individual cases, collective bargaining agreements were in effect 
on iiarch 24, 1934, in the New York City area only. (*) Although data 
concei-ning alleged wage violations are not sufficiently detailed to sep- 
arate complaints bj'- specific charges, there is some evidence of viola- 
tions of the collective bargaining agreement in effect in the Kew York 
City area. The Union and each m.ember of the Union were alert to detect 
any violation. Manufacturers were v,'atchful of their competitors. Con- 
sequently compliance with this provision of the code was considered good. 

Data, are available to permit of a comparison in terms of averages 
for four representative typies of ties and the major manufacturing opera- 
tions '"ith the exception of "cutting" bet'-'een a pre-code period in May 
1933 and a post-code period in August 1934. Detailed data, however, are 
not available to present a complete com.parison between the pre-code and 
post-code rates for all operations or for all products. The approved 
Code, in setting forth minimum piece-work ra.tes, did not list all manu- 
facturing operations and only one occupational classification. Further- 
more, the code listed only seven major styles of ties (**). There rere, 

(*) Cf. p. 21 relative to collective bargaining agreements in Philadel- 
phia, Benn sylvan ia,, 

(**) One additional style was added by Amendment No. 2, approved June 
15, 1934, See p. 2i5. 



9857 



-41- 

however, munero-as other styles and a large n-amter were in continuous 
process of modifica.tion. 

Total piece-work rates in August 1934 for each of the four rep- 
resentative types of ties in all five arers in the United States were 
in excess of those of May, 1933 (*)„ Except in three instances, these 
ra.tes were in excess of the rates computed from the code minima for 
individual operations. The rates for "French-10(^" tie-s in "both the 
commuting area of New York City and the Atlantic-Coast area and for 
"hand-made lined" ties in the Mid-West ares, were less than the code 
minima. . The greatest increases occurred in the commuting area of New 
York City,. where the lowest rates prevailed in Hay 1933. Averages in 
this area increased between 47 and 60 per cent. The smallest increases 
occurred in the Par-Yi/'est area, heing less than 5 per cent for two of 
the four types of ties. The highest rates were paid in the New York 
City area, with one exception. The rate for "French-lO^ " ties in 'the 
Mid-West area was 1 cent per dozen ahove the New York City rate. Data 
are not available to determine whether the increases in the New York 
City area rates may "be attributed entirely to the Code. Wage rates 
prescribed by the Union Agreement in force prior to the Code were in. 
excess of the Code rates. Consequently these manufacturers did not 
have to raise their rates. On the other hs-nd there was a large number 
of manufacturers in the New York City area not bound by the Union Agree- 
ment, It has been alleged they paid lower rates than the xmion rates. 
The increases in the total piece-work rates in this area may therefore 
be accounted for by the increases these latter manufacturers were 
obliged to make. 

Individual c-^Deration piece-work rates for five of the major opera- 
tions for "hand-m^.de hemmed" ties were higher in August 1934 than in 
May 1933, with one exce-ation. (**) The rate for "slip-stitching" in 
the Par-West area was 0.4 per cent less in August 1934 than in May 1933. 
Averages increased between 2.9 per cent for "pressing" in the Far-West 
area to 68.8 per cent for "piecing-pressing" in the Mid-West area. In 
five instances, however, the rates paid were less than the code minima. 
Even the increase of 68.8 per cent for "piecing-pressing" in the Mid- 
West area did not meet the code minimum. Averages increased between 
30.7 and 68.4 per cent in the commuting area of New York City, where 
with one exception the lowest rates prevailed in Maj'- 1933. With one 
exception, the increases in the Ear-".,'est area were the smallest; no 
increase exceeding 10.5 per cent. The highest rates, except for "slip- 
stitching" vrere paid in the New York City area in August 1934 (***). 
No other individual piece-work rates approached the New York City area 
highs within 15,8 per cent. On the other hand rates in other areas 
were as low as 42 per cent of the New York City area rates. 



(*) Cf. Tables Nos. II and III. 

(**) Cf. Tables Nos. V. and VI. 

(***) See explanation in the preceding paragraph regarding increases 
in the New York City area. 



9857 



• -42- 



In Au£,ust 1934, the com;mted v/eekl;'' waives paid for each of the 
four representa,tive t^pes of ties for each of the five areas reporting 
data v/er.e in excess of the riav 19r.3 \?ages (*). The highest computed 
v.'sekly wages occurred in the New York City area, where the highest 
productivity 3.nd with few exce":)tions, the highest individual piece- 
work rates prevailed. Coftrouted weekly wages in this area increased he- 
tween $4.27 and $6.27. The lowest computed weekly wages occurred in the 
Mid-West area, the lowest heing $16. 34 for "hand-HEdc hemmed" ties and 
the highest $17.48 for "machine-made unlined 2-picce sha.pe" tics. These 
computed weekly v;ages represented increases of 33.62 amd $2.79, resaec- 
tively, over Aiay, 19S3 and corresponded to the highs of $27.20 and $34.02, 
respectively, paid in the Hew York City area, ITone of the coirrouted week- 
ly wages in any Eirea;- in August 1934 approached the corresponding highs 
in the New York City area within 24.3 per cent,. In the. Mid-Uest area, 
however, computed vreekly wages were as lov;' a,s 51.4 per cent of the Mew 
York City area; wages. 

Inasmuch as the data are in the form of averages, an increase in . 
a rate or a wage in a. post-code period over the corresponding rate or 
wage in a pro-code period cannot he interpreted' to mean tha,t, either the 
scheduled rate of tho code or the ^^^^'e-code rate v/as observed or ma.in- 
tained in all cases. The high Wages of a sufficient number of vrorkers 
can obscure the low ?/ages paid to a, substantial group. Consequently, 
those cases v?here the pre-co'de rates were extremely lo\i and the post- 
code av'cjrage was either just about equal to the code minimum or was 
less tlia,n the code minumujn, should be scrutinized. Such conditions ex- 
isted in the comm.uting area, of iTew York City, the Atltxntic-Coast area 
and, .the Mid-West area. (**) I^irtherraore, 'it must be remembered that the 
code tolerated the payment of less than the' scheduled code minima pro- . 
vided the "total direct labor cost" of sih item was at least e.quaJ to the 
sum of the individual operation' rates'* ' ' ■ ■ 



(*) Cf. Tables I'los. IX and X. loto that si:!j'.:icicnt data were not 
reported for one type of tic in the New York City, Mid-West 
and Far-West areas and for two types of ties in the commuting 
•area of New York City. ■ ■ 

(**) Certain NRA officials participating in the administration of 

this code have claimed th--t there were numerous flagrant viola- 
tions of the wa.ge provisions of the code ih New Jersey. There 
is also evidence of violations of the v;ag'e provisions in other 
areas, e.g., one manufacturer- admitted paying a rate of 19 cents 
per dozen, wheras the code prescribed 31 cents per dozen. See 
Report of Conference! Erie NecluTear -Hanufacturihg Company, 
August 2, 1934, Appendix "C". 



9857 



-43- 

The code nade no provision, for r,n increase in or even tlie 
raainten£i,nce of the money earnings of a. ^vorker on the hasis of the 
reduced "6 hour code v;eek except insofar as it provided for p.n increase 
in the '.'ee^'l;^ rate- affecting certain "cutters". In a -oiece-v/ork T7a;^e 
pa,jrment systen, neekly and lonf:er periodic ea.rnin.5s are la.rgely de"oend- 
ent on (l) the unit piece-nork rate, (2) the "oroductivitj'- of the r/orker 
during the -oeriod, and (5) the availa'bij.it3'- and continuity of vrork during 
the period. Data are not available to indicate the availohility or cont- 
inuity of i.7or]:. ilor are data availa.hle to indica.te the extent of any 
"normal" pre-code neriod, e.g. , the "nornal" nunher of hours v.'orked in 
a r;ee]-, exceTjt for those em-iloyees of nnnafaoCturers under uaiion agree- 
ment in the ^-ev Yor'c City area (*). State-.ents of IIEA officials and 
others interested in the development of the code indicate there uas a 
rdde va.riation in the number of hours norked per reek in other areas 
as uell as in the Eevr York City area (**). Consequently, the increases 
indicated by the com'oa.rison between the pre-code and the post-code comp- 
uted Treekly earnings do not mean that pre-code iTcelrly earnings rrere in- 
creased or even maintained. They do shot', horrever, that the code min- 
imum rates tended to increa.se the a^vera.^'e \7eekl3r earnings of the rorkers 
on the basis of a S6 hour uee'r. 

B. THE EF?ECTS OE THE CODE Oil TJAGE DIEEEHEITTIAIS 

The vide dis^ia.rity jet\-^een the piece-nork rates "oaid in the dif- 
ferent mo.nufacturing operations in the five areas of the United States 
prior to code he-'otiations has been discussed in Chapter I - "Area ?age 
Differentials". The influence that such conditions had on the adoption 
of uniform rates of pay for the major manufacturing operations in order 
to proiiote a stabilization of labor costs ha.s also been cHscussed in 
Clia.pter I - "The Code Eegotiations". In the discu-ssion of "Thr- Effects 
of the Code on honey Earnings", reference ha.s been raad.e to the increases 
in the total and individual piece-vork rates in the post- code period. 

In the case of both total and individual piece-'Jork rates, there 
Tfas a noticea.ble converging of the post-code rates pa.id in the four pre- 
cede Ion wage areas toTJS,rds the code minima. (***) In -fact the levelinr; 
process in these areas vra.s so mar'-:ed that the rate for "slip-stitching" 
in the Ear-Uest area in August 19G4, vas less than in the pre-code period 
of hay 1933, v/hen it uas in excess of the code minimum. 



(*) The ma:-:imum v/ork ueek provided 'oy the Agreement betvreen the 
;:e-.i's iipcln'eai hanufacturers ' Association of Hew York, Inc., 
and the United ITeckwear Makers' Union of September 1, 1933, 
called for a 36-hour week after January 1, 1934, 

(**) All manufacturers in the New York City area were not bound by 
the union agreement, 

(***) Cf. Tables ITos. II, III, 'V, a-.ad VI. 



9857 



-44- 



Alth.ou.'^h .the rates estaolishecVby the code aroeared to reduce 
the diiferentifils hetweeii the rates 3aid in the foiir ^re-code low wage 
areas, joth the total and individual piece-v/ork rates paid-in the Nev/ 
York City area, rdth few exce-_)tions, remained considerably higher than 
tho.Te paid in the other four areas. V/ith tv/o except! oris, the total piece- 
v/ork rates for four re;:)re3entptive ty.jes of ties paid in the Ne\" York 
City area were approximately, 20 per cent hi'jher in the ^loet-code period 
of AugiJLst 1D34, ,than in the other areas. ' Individual piece-wo-rk rates 
for the major manufacturing oper;- tions in Au;;;ust 1934, in the four pre- 
cede, low wr^e areas, v/ith one exception, were also less than those paid 
in the Hew Yoi-k City area. 

The average' hourly rate paid to all employees in Eew York City in 
the post"Code period of Fehruary 1935 was $0.S8. This rate was ?0.13 
higher than next hi.-:;hest corresponding rate in the State of Massachusetts 
and $0.A?5 higher than 'the lowest rate in the State of G-eorgia, hoth 
states "being in the Atlantic-Coast district. ' (■*) The average honorly rate 
paid in New York City in i'ehruary 1955, to factory em-oloyees (excluding 
"cutters") was $0.57.(**), 1!\ie next highest corresponding rate, in the 
State of New Jersey, was $0.54' or 19 per cent less and. the; lowest rate^ 
in the State of G-eorgia, was $0.44 or 38 per cent lesri.(***) 

In Ffchruary 1935, the highest hourly rate 'for "cutters" v/as paid in 
New York City. (****) This rate was 51.31 per hour or at the ra.te of $47.16 
for a 36-hour week. The, minimimi prescrihed hy the Code v/ag'$35i00 per 
week. It is particularly significant to oh serve- the leveling, effect of 
this prescribed Yireekly time rate in the areas outside of New York City. 
Average hourly rates ranged hetv/een a low of $0.95 in Ohio to a high of 
$1.15 in Colorado. In the greater munher of states the average hourly 
rate ranged het?;een $0.97 and $1.03 or aaoproximately the code minimum. 

No attempt was made to stahilize indirect manufacturing and admini- 
strative lahor cost. Moreover, the Code did not make effective provision 
for office em-'iloyees. Consequently, little may he said regarding a comp- 
arison of the pre-code and post-code earnings or these employees. In Feb- 
ruary 1935, average hourly earnings of office employees varied consider- 
ably in the diffe'rent states. (*****) The lov/est rate reported was $0.35 



(*) Cf. Table No. XIII. 

(**) Cf. Table No. XIV. 

{***) Average labor productivity in tne comjnuting Area of New York 
for the one tyipe of tie reported in Au.iUst 1934, was 3.4 per ■ 
cent less than the New York City Area. JL-vevaQe labor produc- 
tivity in the Atlantic-Coast area for the three tynes of ties 
reported in Au^fiust 1934, was 30,.4,, 10.4, ;and, 17.7 per cent res- 
pectively, less than the New York City area. See Table No. VIII. 

(****) Cf. Table No XV. 

(*****) Cf. Table No XVI. 

9857 



-45- 



per hour in the State of Georgia. The miniinirai v/age prescrilaed "by the 
Code in the "Southern Section of the United States" v/as $0,333 per hour. 
The highest rate reported was $0.70 in the State of TJashington. The rate 
in New York City vra"?. Jp0.50 oer hour. 

From the foregoing, it will he ohserved th^t the establishing of 
minimum rates for the major manuf rcturing operations tended to level 
the rates df pay of v/orkers in these or)erations, particularly in the four 
pre"code low wage areas, But, insofar as the hourly earnings of the work- 
ers were concerned, there still existed a wide disparity in rates paid 
in the post-code period not only between the rates ;")aid in the New York 
City area and the other four sreai? but also in and between the other four 
areas. 



9857 



-46- 

XABLI XIII 

lOEB* S HSCEfXAE ISHasiRT 

HODKS, lAaxs iSD XiLRNINOS OF FACTOBT ASD OFFICE BIPLOTIBS 

BT SIAISS FOR THE FOIXR fZSXS IN FXERUART 1935 







Average 


Average 


Average 










Total 


Total 


Hours 


Average 


Average 


Total Average 




Hours 


jSmount 


Per Bn- 


Paid Per 


Paid Per 


Number Number Total 


Total 


"yjorked 


Paid 


ployees 


Employee 


Employee 


Firms jtaployees Hours 


V/ages 


Per Week 


Per Vfeek 


Per v;eek 


Per Week 


Per Hour 



New York City 



STATES 



92 



1398 



New York State 






{Excluding NYC) 


11 


962 


New Jersey 


22 


869 


Pennsylvania 


25 


1053 


Illinois 


24 


602 


Massachusetts 


9 


273 


Missouri 


13 


680 


Maryland 


8 


97 


California 


10 


362 


Ohio 


7 


431 


Connecticut 


4 


757 


Texas 


3 


43 


Ifeshington 


2 


32 


Michigan 


2 


98 


Kentucky 


1 


53 



160,059 ,jl09,237.97 40,015 ;J37^^309.49 28.75 $19.60 $.68 



125,701 

118,165 

124,269 

73,232 

35,764 

87,131 

13,172 

45,166 

52,927 

95,065 

5,707 

4,844 



58,416.19 

64,282.71 

58,287.03 

38,644.91 

18,435.58 

44,423.48 

6,265.59 

23,636.87 

26,081.05 

50,282.47 

2,591.08 

2,566.96 



31,675 
29 ,-541 
31,067 
18, 308 

8,441 
21,783 

3,295 
11,292 
13,231 
23,766 

1,427 

1,211 



11,046 ^108.27 2,761 



6,747 



3,417.79 1,687 



14,604.05 

16,070.68 

14,571.76 

9,661.23 

4,603.89 

11,105.87 

1,566.40 

5,909.22 

6,520.26 

12,570.62 

647.77 

641.74 

1,277.07 

854.45 



22.93 
33.99 
29.50 
30.41 
30.91 
32.03 
33.95 
31.19 
30.69 
31.39 
33.19 
37.84 

28.17 

31.83 



15.18 
18.49 
13.84 
16.05 
16.88 
l6.35 
16.15 
16.32 
15.13 
16.61 
15.06 
20.05 

13.03 

16.12 



.46 
.54 
.47 
.53 
.55 
.51 
.48 
.52 
.49 
.53 
.45 
.53 

.46 

.51 



Colorado 






1 


Oregon 






2 


Georgia 






2 


Louisiana 






3 


Minnesota 






2 


Nebraska 






1 


Indiana 






1 


Source 


Of 


Dat 


a: 



11 

15 
20 
4E 
15 
45 
169 



1,313 
1,692 
2,719 
4,948 
1,819 
5,317 
19,777 



607.72 
76^.04 
1,164.83 
2,302.33 
911.33 
2,614.13 
8,740.99 



328 

423 

580 

1,237 

455 

1,329 

4,944 



151.93 
192.28 
291.21 
575.58 
227.83 
653.53 
2,185.25 



29.82 
26.44 
34.00 
28.77 
30.53 
29.53 
29.25 



13.81 
12.02 
14.56 
13.39 
15.19 
14.52 
12.93 



9857 



This Table trAen from a :;eport Compiled by the Code Authority of the 
Hen's Neckwear Industry. This Table is a consolidation of Tables 
IIT, XT end X7I. 



.46 
.49 

.43 
.47 
.50 
.49 

.44 



s 
^ 



MEN'S NECKWEAE INDUSTEr 
HOUBS, VASES ASD EAimiBGS OF FACTOSY SiFLOTEES, BXCLIHIIBG "CUTTEES" 
BT STATES FOE THE FODE WEEKS HI lEBEaAET I935 



Average 

Hnmber Total Total 

Bnployees Hours Tages 



Average 


Average 


Average 


Average 


Total 


Total 


Hours 


Paid 


HbllTB 


AmotiBt 


Per 


Per 


Worked 


Eald 


Employe a 


Bnployee 


Per Week 


Per Week 


Per Weet 


Per Week 



Hew Tork City 

STATES 



1,327 156,751 $91,372.55 5^,188 $22,8U3.l4 ?7.8^ 



$18.62 



Average 

Paid 

Per 

Baployee 

Per #B»k ^ g 

$.67 



lew Tork State 
(Exclusive of 
Hew Jersey 
Pennsylvania 
Illinois 
Uassachusetts 
Uissouri 
Maryland 
California 
Ohio 

Cosneticut 
Texas 

Washington 
Michigan 

Kentucky 

Colorado 

Oregon 

Seorgia 

Louisiana 

Minnesota 

Nebraska 

Indiana 



HTC) 912 
837 
991 
51*5 
237 
625 
87 

330 

iW9 

727 

38 

26 

82 

kS 

3 
Ik 

17 
hi 

15 
in 

157 



119,227 

112,511 
116,912 

65,151 

28,991 

79.071 

11,670 

i«,7Si 

»t9,660 

90,5»tl 

5.071 

k.037 

8,625 

5,627 
1.163 
1.517 
2,255 
4,665 
1.819 
'+.737 
16,002 



52,7in.oH 
6o,3»»o.7i 
52,634.21 
32,276.1+1 
14,723.88 
36,625.65 
5.226.19 
20,366.41 
25,835.28 

^.777.89 
2,197.08 
1,939.28 
3.787.46 

2,567.79 
5O8.22 

695.39 

913.63 

2,105.58 

911.33 
2,217.32 
7,553.01 



29,807 
2S,128 
29,228 
16,288 

7.248 
19,768 

2.917 

10.195 

12,420 

22,385 
1,266 
1,009 

_2,174 

1,406 
291 

379 

564 

1,166 

t55 
1,182 
4,500 



13,185.01 

15,085.18 

13.176.05 

8,069.10 

3,680.94 

9,675.91 

1,306.55 

5,091.60 

5.933.82 

11,694.47 

5't9.27 

484.92 

946.86 

641.95 
127.05 

173.85 
228.46 

526.39 
227.83 

55^+. 33 
1,8S6.75 



32.68 
33.61 
29.49 
2§.88 
30.5s 
31.63 
33.53 
30.89 
30.37 
30.79 
33.37 
38.81 
26.51 

30.57 
32.33 
27.07 
33.18 
28.44 

30.33 

28.83 
28.66 



14.46 
18.02 
13.30 
l4.81 

15. 
15. 
15.02 

IS.'*? 
14.51 
16.09 
14.45 
18. 65 
n.55 

13.96 
l4.12 
12.42 
13.44 
12.84 
15.19 
13.52 
12.03 



44 



50 

i 

50 

48 
52 
^3 

48 
44 



.46 
.44 
.46 
.41 
.45 

fi 

.42 



k 



Source of Data: 



This Table taken from a Seport compiled by the Code Authority 
of the Men's Heckwear Industry. 



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-50- 

C. THS FISCE-'JOia: ",7AG3 FAYLEilT SYSTIlIi 

■"Jage incentive S3''ste;us, o-f ::iiicli the strr,i.';;'nt "oiece-"ork systeu is 
, the. forerunner, require careful joT) s;pecif icp.tions end. the estpolish- 
raent of rclecup.te '-a^^e rater in terms of the lal)or larket. There is no 
evidence that such a conce;pt \'rs considered in detorninin;^ a piece-rfork 
'7age pajonent system for this Code. The propriety of the statute is there- 
fore quest ionahle. LalDor and nanagenent, altho ;:i0.nc?^enent to a sonei-^hat 
lesser de^'^ree than- lahor, considered the success of the Code depended 
upon the erpeditious deter-iination and esta'olishenent of piece-norlc rat- 
es for manufacturing operations not scheduled "by the Code. As previous- 
ly stated, an;'' procedure to accomplish these ohjectives had to 'be set up 
so e.s to s-llo"7 the nffnufacturer to keep pace '--ith the cha-n^^jes in style 
and shape of the products and at the sane trie he of prrcticahle appli- 
ca-tion so as to ohtain im:.iedi<ate co"ipli£»nce in all areas. Equality of 
competition as a.ffected h;^ lahor standards depended not onl;" on the oo- 
servp.nce of the operation or occupational rates scheduled "by the Coc'-e, 
"but calso on the maintenance of the sane rate for every operation or occu.- 
pation for er.ch product "b;^ each plant in the indu-str". 

The formal method of procedure far deter-iining and esta"bli3hing 
rates for operations not scheduled "b;/ the code is descri"bed in para- 
graph 3 of Section 5 of Article III of. the Code. Fara;:;rrph (j) of Sec- 
tion 7 of Article V autnorizes the acministrative agency for the Code 
(the Code Authority) to designate three representa.tives of a Hate Com- 
mittee. Tlie other men"ber, representing la"bor, nas a-ppointed "by the IIHA 
Labor Advisory Boa.rc.. It ^7as the duty of this CoM.iittee to mal:e recom- 
raenda^tions to the Code Authority Terexainr^ the urovisions of section 5 
of Article III of the Coce, i.e., the provisions dealing vith piece- 
uork rates. A revie^T of tiie activities of this .'Tt^te Committee presents 
a comprehensive pricture of the difficulties encountered in aoxiinistering 
an industrial statute pre£cri"bing a piece-T.'oric ';:a/'e payinent system for 
"an industry of this chr.racter. 

On April Ig, ].S3U, the Code Authority designated the folloiring a,s 
mem"bers of this Committee: 

Oscar liarko^Titz (Chairman) - Paris iTeclc7ear Company, 

"Talnutport,, Pennsylvania. 

Leopold Lerner ' - Leopold Lerner Company, Ind. , 

Ke-' York, I'l. Y. . 

J. L. Brummett - Ke-res &. To tier, Inc., 

ITe-T York, K. Y. 

J. '..'. iJickerscn of Cheney Bros., South Ilanchester, Connecticut, 
nas designated as a,n adviser and Louis ITuchs, C-eneral i;anager of the 
United I>Ieck:.'err hakers ' Union of lie':.' York City ':as a-ppointed to repre- 
sent la"bor. 

■■ At the first meetinr'of this Committee helc April IS, I93U, the 
Code Authority recommended that immediate consideration "be given to the 
determination of appro-oria.te ".^iece-^7ork rates for o:erations recuired in 

9S57 



-51- 

the naniifacture of r.n "el.'^lDorateo. nodif ication" of the "French, tie" des- 
crihed in Section 5 of Artic?i.e III of the original code (*). This Com- 
mittee proceeded to determine t^..e proper rrtes and the Code Authority 
transmitted its rcconuendations to the ITRk, through the Administration 
lienoer for the Cods on hs.v ^1-, l;i3-^> '"'ith a rocucst for prompt approval. 
This reruest '-^as follo'^ed jy a suiurii.ry of the situation oy the Adxiinis- 
tration lienher {2v. f. I. Stone) to the l~Li Division Aoininistrator (Sol A. 
Rosenhlatt) on llc.y l6, ISo"^, f ":• folio rs: 

"The lien's Secir-ear Code har. a iinioue factor in thrt it provides 
for a series of piece rr?tes. -rhich eve paid uniformly throughout tl^e 
industry'. ITeclarear heing an article of fashion, cha,nges ma.terially 
occur from tir;e to tine, necessitating the :r.odif ication of e;:isting 
rp.tes, or the adoption of a ne"' piece rate." 

"The procedure for tho adoption o:" such rates har "been ca.refully 
norked out. The lien's Hecir .'ear ■ Code Authority has appointed a ITage 
3a,te Committee rhose fx'.nction -.tps to estrhlish tlie possihility of 
ne" rates. On th-t committee lahor is repr'^sented o;' the lahor 
representrtive on the code authority," 

"It is the function of the ITage Sate Committee to consider ne^7 
rates, -jhen such a, re.te has "been agreed upon "o'j the representa.tives 
of the employers and' laoor in the comn.ittee, it is reported to the 
code authority for sp'orovrl. After the code authority has approved 
it, the Ac'ministra.tion Memher transmits it to the Ac'xiinistrator in 
".Washington for his final a;oproval," 

"The code rrent into effect on Liarch 2^th. The first case of ne-T 
piece rates erne up in April, a»nd after going through the procedure 
der.crioed ahove, it '/a.s finally approved "by the code authority ajid 
transj-iitted 03^ the undersigned to the Adiiinistrator under da.te of 
liay h. nothing ha.r ooen heard so far from 'the Acj.-iinistra.tion' s of^ 
fice. In the meantime, the- nev rates have gone into effect in all 
the union shops "by virtue o:' the control exercised 'jy the union in 
these shox-)s. Eo-;ever, t"ne non-union factories, --'aich are only gov- 
erned "by the code, have not put the nev: ra.tos into effect, result- 
ing in a •■'ide differential in rr tes het-reen the union and non- 
union shops to the great detri;.ient a/nd loss of the majority of the 
concerns vhich operate in the. metropolitan district 'Ee-.i York." 

At tho same time, the Adrainistra.tion ilem-oer avdvised that the Code 
Authority -Tac concerned -hether the formal code procedure could not "be 
simplified in order to accelerf te the lega.lizing of additional piece- 
'-rork ra.tes and inruired if authority could "be granted to the Administra- 
tion I.Iem"ber" to provisionally approve such ra.tes s'jfoject to the disap- 
proval of the i^?A uoon revie'T. On liay ?h, IS'j'^, the Aoxiinistration Ilem- 
"ber -'ai.s informec' t'ha.t such s^iggested procedure •r:rs disapproved ^o'j the 
1I2A Legal Division. 

The TJage P^atc Committee continued to consider other proposer? chang- 
es and su'bmitted to the KIA 'oiece-vork rates for three other stales. On 



(*) The rates finally approved for this miodif ication -^ero incorporated 
in the coc.e oy Anendraent ;,'o, 2, a.'O'oroved June I5, 1-3 j^^- 

So':,! ' " ^ ' 



iiay 29, 193^9 a- i^otice of Opportiuiity to oe Heard v:r.s 2^"U-''o--islied l^y the 
NSA., incorporatiiif the rate proposals for the one tie previously mention- 
ed and for the three additional styles (*). Cojections to the proposed 
rates '7ere invited to oe sr^lDnitted "by June 9» 193'+' Ohjections suTamitted 
to 'the proposed rates for the second series of these ties ivere of such a 
nature that the Code Authority/' requested the "HA. to tenpore.rily stay the 
proceedings. Amendment Ko. 2, inclucLing piece-rrork rates for the modi- 
fied "French tie" v/as finally approved on June I5, 193^i-> alnost t^TO months 
after the matter '-as first initiated. 

The e:-p>eriences encountered in '.determining and ohtainin^; a&ainistra'r- 
tive s.pproval of the first series of additional rates for operations not 
covered Id;/ the core, reaffirmed in the minds of the Deputy Afeiinistrator 
and the Code AL\thority the necessity for a more practical procedure. The 
prohlem, ho'vever, "as not one given to ready solution. 

After a lapse of five months, the Deputy Acministra-tor on ITovemher 
17. 193^-. offered the follo'Ting as a proposed smenoxient to the code: 

"Ai"aend Article III, Section 5> "by deleting Paragrpah 2, "beginning 
"Uhere rates", etc., and suostituting a ne-r paragraph o.s follor/s: 

"IThere rates for operations or for styles not covered hy the 
ahove classification "becorie necessrr7^, members of the Industry 
shall suhmit petitions containing proposed miniim.im rate schedules 
consistent v'ith the rates contained in this Code, together -".Till a,ll 
pertinent inf oriiation, to the ?.ate Committee of the Code Authority, 
nhich Committee shall determine the consistency or inconsistency of 
the proposed rr.tes nith the rates contained in this Code, subject to 
the disapproval of the ITational Recovery Aclninistration, and report 
to the petitioner and to the National ?Lecovery Administration as 
specified under Article V, Section S (j), of this Code. Hates so 
established as consistent ^rith the rates contained in this Code 
shyll be in effect imiaediately upon the determination of consistency 
by th.e Hate Oonnittee and its report to the National Hecovery Admin- 
istration, provided, ho-.Tever, that if vfithin ten (lO) daj^s after the 
action of the Hate Committee the National Hecovery Adininistration 
disapproves the findings of the Hate Comjiittee, and if after the 
necessr/ry facts have been presented "q^t such Hearings or other means 
as may be reciuired b3'- the National Hecovery Acaninistration, a nen 
rate schedule is finally a.pproved \>-j the National Recovery Adminis- 
tration, ^hich rate schedule is higher than the sclr^dule originally 
submitted 'Xi-j the petitioning member of the Industry, employers '/ill 
pay to the en.ployees concei'ned the difference betneen the rates act- 
ually paid and the rates that 'jould have been paid if the final ap- 
proved schedule had been followed, " 

Amend Article V, Section g (j), (providing for establishment and 
diities of Hate Committee), by substituting the follovring: 

"To appoint a Hate Committee, such Committee to consist of one 
member of the Code Authority appointed by the La-bor Advisory Board 
to represent Labor, one Administration Ilember of the Code Authority, 



(*) C f. Adjninistrative Order No. 363-8 , Hay 29, 193^. 
9S57 



-5C 



and one Mem^ber of the Industry. The Executive Director of the Code .. 
Authority shall serve as ex-officio merater of the Rate Comrtittee. The 
duties and powers of the Rate Coraraittee shall'lbe to s"tudy and make re- 
commendations to the Code 'Authority with resi:)ec't to the specific rate 
schedules estalilished under Article III, Section 5, and any other 
specific rate schedules estahlislied as a part of the Code hy amendment; 
to receive applications from memoera of the Industry relative to the 
establishment of rates not specifically estahli shed under Article III, 
Section 5, or hy Amendment; to study such applications and to determine 
the consistency thereof with rates contained in the Code; to advise 
petitioners of the determination of the Rate Committee as to the con-- •. 
sistency or inconsistency of the riroposed rates on new styles; and to 
re-oort ihimediately such determination to the National Recovery Admin- 
istration. The determinatlfen of the consistency of proposed rateS 
shall "be "by unanimous vote of the voting mGm"bers of the Rate Committee, 
If there is disagreeraeht, the approval of the National Recovery Admin- 
istration must "be o"btained;jf' ■ ' ■...■., .. 

The gist of this proposal was to decentralize the control and vest 
the Rate Committee with the powers of approval, su"bject to review and 
disapproval "by the MA. fflP some extent, this modified formal proaedure 
would speed-up the determination of new rates. But, manufacturers 
might still consider that a new rate was unnecessary and fail to notify 
the Rate Committee. The ERA Legal Division, however, ruled that such 
a delega,tion of power was not legal. 

The Rate Committee, through the Code Authority, then attempted to 
take the situation in hand. .On January 29, 1935," th'e Code Authority 
issued its Bulletin No. 2 to the mem"bers Of the' industry. 17ith this' 
Bulletin was enclosed a -orinted oiece-work wage schedule em"bodying those 
additional rates determined UDon "by the Hate Committee for items not 
covered "by the code. (*) This schedule was not su"bmitted to the NRA 
for approval prior to its issuance. Su"bsequently, on March 18, 1935, 
the Code Authority petitioned for formal NRii. approval. Approval was 
withheld pending a study of the whole wage structure of the Code. 

By this time, theKi-U. had concluded that more furidamental issues 
than the mechanics of procedure required examination. A more scienti- 
fic analysis of the manufacturing operations in this industry appeared 
to "be necessary "before any further consideration was given to the es- 
ta"blishing of 'oiece-work rates. The question of the piede-work wage 
pa?/raent system, versus a time payment system was "being considered. No 
further action leading to a solution of this pro"blem was talcen "by May 
27, 1935. 

It is pertinent, , howe-Ver, to mention that the Rate Committee and 
the Code Authority were 'also confronted with difficulties other than 
those of the mechanics of the formal procedure. Frequently the Rate 
Committee found it difficillt to reach an agreement on the propei*' piece- 
work rate or classificati15?i of an item su'bmitted to it. In this regard 



(*) G. ApToendix "P". 



9857 



-54- 

it will "be recalled that the Code did not clearly sta.te the specifica- 
tions of either the tasic manufactiiring operations or the product or 
its part,' Futhermore, such specifications as the Code did contain 
only' referred to seven f-reneral types of ties and the major manufactur- 
ing operations. 

' Numerous other types of ties were Deinj"^ manufactured and there 
were manufacturing^ ooerations not listed. There was also a continuous 
process of invention of new products. Such situations were not conducive 
to the expeditious resolution of wage rate determinations that permitte,d 
a practical apolication in the conduct of this "business. (*) 



(*) The minutes of the Code Authority meetings of May. 6, 1934, and 

IJovemher 21, 1934, disclose some of the difficulties of the Hate' 
Committee. John H. Klingenfeld, Administration Mera"ber for the 
Code, also remarked: 

"In some cases the variations from the styles enumerated 
in the code were minor; in others it required ejcperts to ■ 
decide fully on the variations. Not only were there dif- 
ferences "between the labar representative and the repre- 
sentation of the employers in the rate committee as to 
proper classification, "but the manufacturers themselves . 
often disagreed on the proper classification of any style 
tie which differed with that given in the code. It was 
not enough to prove similarity of operations; o"bjections 
i^ere raised that the type of tie to "be classified was 
selling at a lower orice than the standard in the code. 
The labor representative on the other hand stood "by 
the question of fair consideration of the work involved, 

Although on the whole it appears that more lahor was 
required on the more expensive ties this was not universally 
true, and the exceptions caused "bickering and dissatisfac- 
tion. In other cases a manufacturer produced a tie sim- 
ilar in all respects to the one provided for/ in^-the-aepde 
"but he o"bviated a certain operation - he put in loops 
instead of slip stitching, and another manufacturer 
did away with the turning operation in the- lined type 
of tie. For market^ purposes the. ties were as good as 
those standardized i;n. the code; the question whether 
these mamifacturers should thus "be ena"bled to under- 
sell the standard makes received no unanimous answer ej.ther 
from the r8,t'5 committee or from the Code Authority, The 
latter referred it to the rate committee. Prolonged and 
interminable disputes arose with the result that interp- 
retation as to the proper classification of the type 
under one or the other style in the code was not handed 
down for- months, " 



9857 



-55- 

Wiile the HRA officials were considering the more fundamental issues, 
manufacturers were oecoraing irked "by the delays in rea.ching determina- 
tions "by the formal method required "by the CCTde, Some "believed the in- 
formal and provisional procedure provided a more practical solution for 
their immediate Tour^DOses. The Code permitted the mem'bers of the in- 
dustry to adopt piece-work rates for unscheduled operations, "consistent" 
with the Code rates rjending the formal method of fixing rates requiring 
the approval of the Administrator. (*) Assistant Deputy Administrator, 
Sherman Trow"bridge, refers to this situation in the IffiA preliminary code 
history of this industry as follows: 

"Immediately after the adoption of the code, new styles 
appeared on the market which were alterations of styles 
covered "by the code, and upon which the manufacturers 
claimed they had esta'blished "consistent" rates.." 

The dilemma appeared to center around the interpretation of the word 
"consistent". The MA, in the a"bsence of more specific language in a 
code, usually interpreted such expressions as "in the o-oinion of the 
mem"b«r of the industry". It is o'bvious that such an interpretation 
would ultimately lead to the "break-down of the entire formal procedure 
for treating unscheduled rates. 

On the whole the experience of the "NRA, the Code Authority, the 
Rate Committee, the manufacturers and the employees in respect to es- 
ta'blishing industrial statute complementary to the code -orovisions (%a 
a national "basis for changes in products and operations showed the -un- 
satisfactory character of the procedure. These experiences were parti- 
cularly illuminating when compared to the speed with which the New York 
City manufacturers had settled such questions under collective "bargain- 
ing agreements with the union. The procedure under these agreements 
has already heen descri"bed. Generally, a determination was reached with- 
in two weeks; frequently within one week. But the locus of control in 
the agreement procedure was located at the origin of the change.. Father- 
more, all the' parties, t'he manufacturers, the employees and the union 
knew the specifications of the products and the operations, although 
these specifications were nowhere completely recorded in language^ 

Procedure under the code requirements was quite different. Tlje 
first and only completed attempt "by the formal code method rei^uired six 
weeks in the hands of the MRA officials plus three wseks in the hands 
ef the Rate Committee. Moreover, there was no national organization 
of employees to provide "orrtection to the employees through the pfo- 
cesses of genuine collective "bargaining. 



(*) The MA referred to this orovision in response to communications 
from mem'bers of the industry inquiring how to, proceed without 
delaying production, See Deputy Administrator Nelson H. Dodge's 
reply of May 26, 1934, to Mr. Falk's (Chj.cago, Illinois) letter 
of May 23, 1934. 



9857 



-56- 



Seference has also teen mads to paragraph 3 of Section 5 of Article 
III of the Code. From .the standpoint of a means to defeat the piirposes 
of the Code, this lorovision was important. In effect it granted a re- 
lease to a mamxfact.orer from compliance with any of the wage rates pre- 
scri"l9ed "by this section orovided its "total direct later cost" for an 
item was equal to or greater than "the total direct lalDor cost, cal- 
culated in accordance with the piece-?;ork rates" contained in this sec- 
tion. of the Code.-- The Code did not define the term "total direct later 
cost". Consequently, it could likewise te interpreted ty the manufact- 
urer. Manufacturers could defeat the purposes of the Code ty manipulat- 
ing the individual operation rates to the detriment of one or more work- 
ers tut at the spme time otherwise technically conform to this provision. 
The TDOsting of the later iDrovisions of the Code was of little value to 
the worker in such circumstances. It would also apoear useless to es- 
tatlish additional piece-work rates, if other provisions in the Code 
tended to negate their nurpose. The 13HA, preliminary code history for 
this industry refers to this situation, as follows; 

"Certain manufacturers juggled their piece rates in order to 
discriminate in favor of certain- employees, often the partners 
in the concern. " , , 

D. CONFLICT OVEE "CUTTING" OPEEaTIONS. 

The experience under Section 6 of Article III estatlishing a 
minimum wage for a "cutter" lalso requires trief discussion. The Code 
did not state the specifications of this occupation. As previously 
stated several parts of a tie require "cutting" operations. There was 
also a -Continuity of other operations in connection with the actual 
."cutting" of a fatric, e.g., laying-up, marking, shipping, picking-up 
and tundling.- Manufacturers in the same and different ^areas had dif- 
ferent ideas as to the extent of the operations to te performed'ty a 
"cutter." The union agreement with the New York City maniifdcturers at- 
tempted to explain the limitations tut it was neither clear nor complete. 

In the administration of the Code the question arose as to the 
limits of the operations that were contemplated to te performed ty a 
"cutter". The Code Authority on July 20, 1934, after consideratle study 
of the protlem without reaching an agreement, sutmitted it to the NEA, 
advising that it had concluded that i'shipping" and "cutting" should te 
included, "picking-up" and "tundling" should not te included and that 
it was unatle to agree as to "laying-up" and "marking". These con- 
clusions, however, did not represent an agreement among all raemters 
of the industry. 

On Octoter 2, 1934, the FRA, issued a formal interpretation deal- 
ing with the sutject as a consea^uence of a specific issue (*). It ap- 
pears that a manufact-'orer in St, Louis, Mo., had applied to the State 
NRA ' Compl ianc e Director for a ruling as to whether the rainimiim wages 



(*) Cf. Compliance Division Order No, 363-21, Octoter 2,, 1933. 



9857 



-57- 

prescribed "by the code had to -be paid to a "cutter" '^ho was not suffi- . 
ciently skilled to cut silks. The State KM Compliance Director, issued' 
a provisional ruling to the effect thr;.t Section 6 o'f Article III did not 
apply in such circuE:istances. Sucsequently, the matter was submitted to 
Washington and the IIRA. formal interpretation was issued, reversing the 
ruling of the State JNISA Director. 

But this interpretation did not settle the issue. lAccordingly an 
amendment to the Code was proposed a.t a public hearing on October 12, 
1934, as follows: 

"Amend Article I - "Definitions" - by adding the follow- 
ing as Section 10: ^, "The term "cutter" as used herein 
means an employee who takes the silk, inner lining and ' ' 
silk lining, spreads this on the table, marks the 
material where marking is required, cuts the material, 
takes the cut material off the table and folds it into 
bundles. " 

This proposal merely ^centuated the conflict of interests between 
those majaufacturers in the "He^ York City area bound by union collective 
bargaining agreements, supporting the proposal, and the manufacturers . 
in other areas. The representatives of labor agreed to the amendment. 
Objections from other Tjaarters, however, ?rere so numerous that the MIA 
elected to "side-step" the issue and the proposed amendment was "shelvei". 
This course was undoubtedly expedient. The proposed amendment would not 
have settled the issue. It applied to operations for one material only, 
i.e., silk. The products of this industry were manufactured from a num- 
ber of other fa'brics. Moreover, it did not get at the real issue. The 
underlying problem concerned all workers engaged in the so-termed "cut- 
ting room". In the unionized sectors of the industry such workers were 
considered "cutters". On the other hand, it was possible that an opera- 
tion delimited by a contracted definition of a "cutter" would not fall 
in any other group for which piece-work rates had been established. In 
such an event the area of workers without other wage protection that the 
minimum wage provisions would be increased. 

E. EVASION OE PIECE-WOEK Al© HOURLY RATE MAINTENANCE PROVISION 

Some of the deficiencies of the provisions of sub-section 8(c) of 
Article III have been referred to previously. In effect these provisions, 
provided for the maintenance of pre-code piece-work and hourly rates. 
There were several instances of attempted evasion. One plant was moved 
from New York City to West Ne^-r York, New Jersey (*). This manufactiirer 
considered that a new plant had been established and consequently there 
were no rates in effect on October 6, 1933, that had to be maintained. 
Another manufacturer in New York City opened a shop next door. Bat 
complaints alleging violation of this provision did not always concern 

•m 



(*) See files of the NIA. Compliance Division in re: True Value 
Neckwear Company, 1261 Broadway, New York City, New York, 



9857 



-58- 

re-located or new plants. During 1934, theproduGts of certain manu- 
facturers in New York City under union agreements were reclassified tO;, 
the lower q-uality grade (*). The' union recognized these re-classifi-- • 
cations and, tolerated the lower r;.-tes of pay for. the lower grade prduct 
in accordance with the Union Agreej.ie:a-t. The Code did not provide for 
two sets of rates according to the grade of the product. Consequently, 
it was alleged that these re-classifications were in violation of this 
provision which prohihited a reduction in wages. There is no available 
evidence, however, to indicate that the re-classified manufacturers 
reduced the rates paid to its employees. ; 



(*) Cf. p. 4, for grouping of manufacturers in the trade associations 
hy quality grades of products. 



9857 



-59- 

QIIAP-^S.?. Ill 

Ail A?Pr:AI3AL 

As a device for inaintaiAini^: or i.icT' rising tiie money earnings of 
all Y/orkers in tlii-i i-idur:try, the Code v.';is deficient. The imperfections 
of the code provisions contributor;' to this situation have already heen 
pointed out. The Code did not provide for maintaining; or increasing 
the rates of -nay, or -periodic earnings of all workers. Ho provision, 
other than the general minimum wr-ge provisions, was made for a control 
of the wages of a large area of workers, e.g., those engaged in clerical, 
office, accoujiting, gelling and distrib\itory activities. The scheduled 
minimum iDiece-work and time rates did not provide for increasing or main- 
taining the rates for all ernnloyees affected. Such scheduled rates were 1 
less than those "being paid by manufacturers in the Hew York City area 
under a collective bargaining agreement with the utaion. The scheduled 
piece-work rates for "hand-made" ties merely equalled the pre-code 
union .rate existing in Philadelphia, Pennsylvania. 

The Code did not include any general provision for the maintenance 
of weekly earnings. Consequently, if pre-code rates v/ere not required 
to be increased or even maintained, v/eekly earnings on the basis of the 
shorter code week \vere not required to be increased or maintained. On 
the other hand, the. weekly *earnings on the basis of the shorter code 
week could be reduced. 

The Code did exert an effective influence in certain sectors of the 
industry. Evidence data in the tei'ms of averages indicate that the 
piece-work and time rates and the weekly earnings of a considerable 
group of vvorkers were increased after the Code became effective, 

From the -noint of view of enfoi'Cement, .the Code was -likewise un- 
satisfactory. It is true that stated rates set forth in a code are 
readily recocTiized. i5ut "onder a -^-liece-work wage pa;/ment system, the 
number of -units produced is an iraportant factor in determining the earn- 
ings of . the-. -w.ai'ker during a given neriod of time. Hence the identificai- 
tion of, first, the unit and, secondly, the acceptable unit is important. 
As previously mentioned, the Code did not fully describe the unit. Nor 
were other provisions e;cpressed in ;precise language. 

Although available records do not indicate in detail the n-umber of 
histor;/- of all alleged violations of the "v.-ages above the minim-um" pro- 
visions of the Code, they ?rere relatively numberous. The proiSf of al- 
leged violations depended largely on technical interpretations of the 
specific code provisions involved. The most harassing problems con- 
cerned the Sitting of wage rates for -unscheduled operations by individual 
man-ofacturers, "consistent" with other rates. The issues involved have 
been discussed loreviously. The i'lEA Co!:n|3liajice Division was not prone to 
take decisive action Adhere such intangibles were involved. As a conse- 
quence the HEA Compliance Division, the Code Authority and the labor 
complaints comraittee for the industry generally resorted to persuasion 
and coiiipromise. In a, substantial portion of the complaints involving 
!'v;ages" restitution was secured. In one instance the labor representative 



9857 



-60-^ 

of the Hate Coinnittee held that a $20,000 acc^omalation in tack wages 
had heen coraprouised for $4000. (*) Ho cases were hronght "before the 
courts. Complaining manufact-arers aiul employees characterized the ad- 
ministration as ineffective. She labor coraplaints comniittee bore the 
"brunt of the discontent. 

It may be presumed that a -liece-work iDaj^ment system, fixing definite 
rates for a specified nurnber of units removes any further ^"speed-up" 
until a change in the nmnber of ■■anits to be produced, is made. It would 
also appear that the legal sanctions of a code would completely remove 
any further "speed~up" at least imtil such time as the code was amended. . 
In a piece-work wage payment system the control is transferred from the 
foreman under a time rate system to the eraisloyer's inspector who passes 
or rejects the unit -nroduced as acceptable or not. The Code for this 
industry did not completely define the unit, and it is doubtful if lan- 
guage could have been written to describe an acceptable unit which iTOuld 
have proved practicable in operation. Accordingly, it is possible that 
a "speed-up" system existed with individual employees in their (?ndeavor 
to maintain their prior weekly .earnings which were not guaranteed by the 
Code. ' ' . . 

From the point of view of practical industrial operation, a national 
regulation of miniirruiii wages on a piece^^wrok vrage pajmient. basis, adminis- 
tered from a center remotely removed from the origin of immediate prob- 
lems, did not prove satisfactory in an industry of this character. The 
business of a large number of the units of this industry depended on 
their ability to create ,new products and to keep pace with style changes. 
Such circ-umstances initiated modifications in unit labor costs. The time 
of delivery of the finished product to meet market demands was important. 
The period of production was short. Hence, in a piece— work v/age payment 
system of operation, equitable Uiiion 'rates of pay had to be determined 
without delay. The delays, resulting from the formalities attendant upon 
the NEA adiiiinistra-tive procedure have sho'vm. The code provided for the 
fixing of temnor'ary rates in cpse of changes. But such a procedure 
tended to offset the objectives- of the formal proce(iure prescribed by the 
code. Consequently, the pur!:)OEes vfhich iiiduced the adoption of the formal 
procedure protecting the wage earner and providing fair conipetition were 
defeated. 

It may also be argued that a' straight piece-work v/age payment system, 
i.e., payment for performance, is the most equitable. Such an argaement 
presumes that due regard had been given to the proper setting of the 
standards and to the valid and complete translating of these -standards 
into proper values for the performances. In the establishing of piece-* 
wor): rates in this code, there is no evidence that adequate considera- 
tion was given to the setting of the standards for the tpols, equipment 
and materials to be used' and worked.- Hor is thei-e evidence that all com- 
petitive factors, e.g., shortages in the labor market, were fully taken 
into accou:it. • ' , ■ ■ ,, 



(*) Cf. Letter by Louis Fachs, G-eneral Manager, United Neckwear Makers' 
Union to the NEA IJovember 13, 1935. 



9857 



-61- 

The fonmilation and administration of an equitable and practicable 
national law, "based on a piece-work v/ae^e rjayment system, governing the 
conditions of employroent of vrage earners in an industry subject to rapid 
or frequent cliangos in tiie characteristics of the product, is questionable. 
The development and administration of such a national law requires a 
disciplined and trained union ort^-anization of v;orkers. Centralized con- 
trol is requisite. Bu.t sufficient local autonom;;^ is also essential to 
negotiate iiranediate problems, consistent vdth the national -olan of base 
wage rates. Unionization in this industry had not progressed to this 
d.egree of achievement or completeness. 



9S57 



-62- 

iPPEilDIX "A" - STATISTICAL DATA 



EXFLAMATCHYJiOTSS 



Description and Explanation of Data for Tables Sos. II to X, 
Inclusive, ITo. XII, and lies. XVII to XXVII, Inclusive. 

Tatles llos. II to X, inclusive, Jo^ XII, and I"os. XVII to XX, inclu- 
sive, (Tables l"os. II to X, inclusive, and ilo . XII are incorporated in 
the text) are tal-ien from a "Freliminarv Report on the Anal2^sis of Piece 
Hates, Labor Productivity and Consolidated Profit and Loss Statements, 
Maj; 1933 and Ausust 1934 for the L'en' s i'Teclcr/ear Industry" , prepared by 
the Industry ileporting Unit, Division of Research and Planning, ITational 
Recovery Administration, Januarj'- 2, 1935. 

Tables Hos. XXI to XXVII, inclusive, are tai^en from data compiled 
(but not summarized) subsequent to the aforementioned Preliminary Report, 
by the Industry Reporting Unit, Division of Research and Planning, 
National Recovery Administration, to complement this report. These data 
have not been used in this study but are included to furnish additional 
statistical evidence of the trends in this industry for other than the 
representative products and operations selected. 

The description and explanation of data for these tables are as 
follovrs: 

Source of Data 

The information contained in this report was compiled from the re- 
turns of a questionnaire sent out in August 1934 to each member of the 
Men's Heckwear Industry; sufficient returns to insure an adequate sample 
of the Industry, however, \7ers not received until December 1934. All or 
part of the data submitted by 148 m-jiiuf acturers was used in the survej^; 
these establishments representing a.pproximately 50 per cent of the total 
number of enrployees, and about one-third of the number of firms in the 
industry. 

Tyce of Data 

This report contains data on the piece rates paid in manufacturing 
particular types of ties and the productivity of workers engaged in 
manufacturing such ties. In addition, operating statistics are given as 
contained in an analysis of the profit and loss statements. This pre- 
liminary report is complete with regard to data on profit and loss state- 
ments but contains an analysis of the piece rates paid for only four t2rpes 
of ties, namely, hand-made ties, hemmed; hand-made ties, lined; machine- 
made, unlined, 2 piece shape ties; and Prench ties - lOi^. A similar 
analysis of the other four t^/pes of ties will be submitted in a later 
report . 

Explanation of Terms 



Total Xiiece-work rates in this study refer to the sum of individual 
operation piece rates involved in the manufacture of a specific tie. To 
insiore comparability, operations in addition to those listed in the Code 
for any particular tjnpe tie have not been counted where any firm performed 

9857 



-63- 

such additional operations. It wns necessary to com"bine the operations 
of "hemniing" and "piecing" (in Taoles VI eji^ VII ) inasmnacli as a lar^.e nim- 
"ber of the Kew York City and Mid-VJest reporting rn-5nufacturers comtined 
these operations and reported one piece-v/ork rate for the two. 

Average total piece - 'wor k rate is the average of the total piece rates 
paid hy the firms in a pprticular geographical area, obtained hy dividing 
the stiE of total piece rates hy the niim'ber of firms in the area. Inasmuch 
as the term is very a'.7tovard and must he used frequently in the text, the 
"average total piece-work rate" vfill te referred to simply as the "total 
piece— work rate" . 

Lahor productivity as used in this study means the n-umher of dozens 
of ties produced per hour "by an employee of average efficiency. 

Computed iveekly wa--?e represents the weekly wage which the worker of 
average efficiency would earn assuming he performed the same operation 
continuously on a particular tirpe tie for a 36 hour week. It is obtained 
ty multiplying the piece rates paid, per dozen "by the number of dozens that 
worker can produce in one hour by 36 hours. Kiis computed wage shows the 
combined effect of piece rates paid and productivity or the earning abilil^" 
of employees in a particular area. 

&eo-:^raPhical &rouT)ing 

The reporting firms have been grouped according to their location 
into the five following areas: 

a. Wew York City area 

b. Commuting area of Few York City - within a radius of 40 
miles. (iTote: All of the reporting concerns in this area 
were located in ifew Jersey.) 

c. Atlantic Coast area - includes area east of the Appala- 
chian MoTintains but excluding New York City and the com- 
muting area of Hew York City. 

d. Mid-west area - includes area from Ohio west to Missouri. 
(iTote: Five Southern plants were also included in this 
area.) 

e. Far-west area - includ.es California and Washington. 
Adequacy of Sample 

The size of the sample, i.e., the number of reporting firms for each 
tj'pe of tie covered is shovm in Tables XIII to XVI. The size of this 
sample seems adequate enough to be truly representative of each geographi- 
cal area except one - commuting area of New York City. In this area only 
four to six plants reported but there is a very small range of variation 
among them. Data on a few plants manufacturing only high priced necfavear 
($30.00 a dozen) were excluded since their figures would distort the 
average. 



9857 




E-i en 



o 

■■>< 



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-73- 



APPENDIX "A" 
UM'S HECKKTEAR IHDUSTEY 
PIECE-lirOHK EAIES ML PfiODUCTIVITT BY OPEEATIOHS IH FIVE AKEAS OJ THE 
UNITED STATES IH MAY I933 ATO AUGUST I93U rOE EAKD-MADE TIES LIKED 



This tatle deals with piece rates paid and lahor prodMctivity (dozens produced per hour) for the code 
operations involTed in manufactiiring a hand-made tie, lined. Since a large nvmher of the reporting firms 
in the Atlantic Coast and the Mid-West Areas, reported one piece rate for sewing margin lining and for 
piecing, al«o only one for hoth turning pockets and pressing pockets, similarly for the three operations 
of slip stitching, piece pressing, and pressing, it was necessary to so comhlne these various operations. 
The addition of piece rates for each operation stated telow will not equal the total as shown in Tatle XVIfl 
since some firms reported one piece rate for many operations while a few others reported a total for all 
operations, these items helng excluded from the tahle helow. 



Area 



Uew York City . . 

Commuting Area . 
(Hew York City) 
Atlantic Coast 

Mid-West 

Far We st • 



]^]m'ber of Firms: Piece rates 
Eeportlng ; (cents per dozen) 



iProductivity: Piece rates ; Prodoctivity 
(cents per d ozen); 



Piece I Produc-: Uayi Aug. : Per :Doz. : Index : May: Aug. 

Bates : tivity 11933: 193't: Cent :per :BYC-1C0:1933: I934 
: ! : : Changes: hour: : : 

: i : : :Ang. : August: : 

: : t ; ;1934; 193'^ 



28 : 

6 J 



15" 

6 



Sewing machine lining and piecing 
(code minlisum 23-0^) 



Per : Doz. : Index 
: Cent : per : HYOIOO 
: Changes: hour : 
: : Aog. : ingust 

I 93U i 193 1^ . 



17 J 8 
20 : 15 

6 : 6 



»33.3! 
:14.3: 
I : 

J15.U 



37. 8 J 413.5 
19.7: +37.8 



22.1: -ihG.k : 
:15.2: 22. 2 J 4.U6.1 1 
: 20.7« 23.3; 412.6 t 



1.3'. 

i 

2.6( 
2.6: 
2.1; 



Turning pockets and pressing 
pockets (code minimum 8.0^) 



100.0 : 10.2:11.3 : +10.8 
121.4 : k.Si 7.8 : +59.2 



92.9 
92.9 
75.0 



Slip stitching, piece pressing and 
pressing (code mialmnm 58.0^) 



6.5: 7.9 
7.O: 8.0 



I +21.5 
: 414.3 



6.2 
9.0 

6.^ 

1+.6 



100.0 
1^5.2 

101.6 
87.1 
74.2 



28 I IS r47.5» 64.2: 435.2 : 0.9: 100.0 

6 : 6 J37.9; 58.4: +54.I t 1.1; 122.2 

; : ; t : x 

17 ; 8 j46.0: 58.4; +27.O j 0.8: 8S.9 

20 : 15 i4l.6; 57. 1: +37.3 « 0.7« 77-8 

6 : & :59.3: 61.3: 4 3-'* * 0-8: 88.9 



New York City .. ; 

Commuting Area . : 
(Hew York City) : 
Atleotlc Coast : 

Mld>f est t 

7aT West : 



Source of Data: 



9867 



"Preliminary Beport on the Analysis of Piece Bates, Lahor 
Productivity and Consolidated Profit and Loss Statements, May 1933 ^ai August 193^^ 
for the Hen's Beckwear Industry^ prepared by the Industry Reporting Unit, Division 
of Besearch and Planning, National Recovery Adminiatration, January 2, 1935' 



-73- 

TABLX X£TI 
APPSNDIX "1" 

u£N*s mcsMiS. iksustb; 

PIECE-WOEK EAIES AMD PaaUUCTIVITT BT OPEBAIIOKS IN MVE lEEAS OP THE 
UJIITED STATES IH MAT 1933 AHD ADHUST I93I+ FOR UACHIHE-JJADE DHLUffiD 
2-PIECE SHAPE TIES 



This tal>le deals with piece rates paid and labor productivity (dozens produced per hour) for the code 
operations Involved In manufacturing a machine-made, unlined, tivo-plece shape tie. Since a large mimher of 
the reporting firms In the New Tork City, Atlantic Coast and Uld-West Areas, reported one piece rate for hem- 
ming, piecing, running up, and piecing pressing, also only one piece rate for turning and pressing, it was 
necessary to to combine those operations. The addition of piece rates for each operation stated below nil!) 
not equal the total as shown on Tabla ^CTIsince waie firms reported one piece rate for several operation- <)AU* 
a few others reported a total for all operations, these items being excluded from the table below. 



1 : > 

iHumber of Pirms: Piece rates t Productivity 
Reporting : (cents per dozen) 



Area 



sFlece: Produc- : May: 
lEates: tivity :1933: 
: : t 
i : : 
: t J 



Aug. t Per : Soz. : Index 
I93U : Cent I per sNTC-100 
: Changes s hour : 
: : Au€> : Aug. 
; : 193*^ 8 19^ 



Piece rates s Productivity 
(cents per dozen 



Kny 


• 


Aug. 


: Per: 


Doz. : 


Index 


1933 


: 


193'^ 


icent: 


per : 


dlO-lOO 




i 




Changes 


hour: 






: 




; : 


Aug. t 


August 




: 




: : 


1934 : 


19 3** 



Hew Tork City . . : I5 

Commuting Area . : 5 

(New Tork City) : 

Atlantic Coast . : 12 

Uid-West t 13 

Far West t £ 



S 
k 

7 
9» 



:Hmming, Piecing, 
:Banning up. Piecing 
:presslng, (code 
;minlmum 23t^) 



Turning and Pressing 
(code minimum I6/) 



S27.7: 
Jl6.2: 
: : 
:17.S: 
:19.2: 



:25.0: 25.8 




16.2: IS. 2 :+l2.3: it. 3 
10.0: 16.0 J+6O.O: k.i, 



Seek stitching 
(code alnlmniB 03i) 



12. y. 16.1 :+30.9: 3.U 
13.7: 16.7 :+2l.9: 3'^ 
17.«; 18.8 :■)• 5.6: 2.5 



100.0 
107.0 

79.1 
79-1 

58.1 



Hew Tork City j 10 j 
Comimting Area : 5 j 
(Hew Tork City) i : 

Atlantic Coast t 
lild-fest : 

far ftBt 



12 : 

13 : 



6 

4 

7 
9» 



3.5 
2.6: 
: 
3.0: 
2.9: 



3.9 
3.2 

3.3 
3.8 



♦11.4 
♦23.1 J 

♦10.0 t 
♦31.0 : 



14.0 1 100.0 
15.9 : 113.6 



14.0 
10.0 



100.0 
71.4 



4.2; 4.3 ; ♦ 2.4 1 11.8 ; 84.3 



U^t firms report productivity for turning and pressing, also for neck stitching. 



Senree of Data: 



9867 



■Preliminary Report on the Analysis of Piece Rates, Labor 

Froduetlvity and Consolidated Profit and Loss Statements, Itey 1933 and 

iagost 1934 for the lien's Heckwear Industry," prepared by the Industry Reporting 

Unit, Division of Research and Planning, National Recovery Administration, January 2, 1935. 



-74- 

TABLX XXTII 
APPEHDU "A" 
lien's NECEKAB INOUSTHI 
PISCE-ffOBK HATES ASD PEODUCTIVITT BY OEEEAIIODS IH riVE AEEAS OF THE OTITED STATES 
IH MAT 1933 AlTD AUGUST 193!^ lOH UACHIITB-UADE OPEN MAfiGIHED LIBE lAEGE ElfD lEENCH 
SMALL AM) CLOSED SHOBT PIECED TIES 



This table deals with piece rates paid and labor productivity (dozens produced per hour) for the code 
operations involved in manufacturing a machina-made, open margined lined large and, ITrench anall and closed, 
short pieced tie. Since a large number of the reporting firms in the Hew Tork City area, reported one piece 
rate for turning and turning pocket, also only one piece rate for pressing and pressing pocket, in each case 
it was necessary to combine the two operations. The addition of piece rates for each operation stated below 
will not equql the total piece rates reported in Table XXlCsince some firms reported one piece rate for several 
operations while a few others reported a total for all operations, these items being excluded from the table 
below. Por the same reason the number of firms reporting piece rates and prcductivity will not correspond to 
the numbers reported in Table XXII/. The code does not list minimum piece rates for all the operations given below. 



I : : 

t Bomber of Unas: 
; Eeporting ; 




: : : : : 

Piece rates liProductivity t 

(cents per dozen); 8_ 

: Doz. : Index : 

: per :IITC-100: 

: hour : : 

: : : Aug. : August 



Eiece rates : 
(cents per dozen ); 



Productivity 



Aug. J Per 
I93UJ Cent 

: Changes 

: 

: 



I I93U ! 1934 » 



Uay : Aog. t Per : Doz. : Index 
1933s 193'+ : cent: per :HT0-100 
: : Changes hour 

: : : Aug. : August 

19^: 19 ^tt 



Hew York City 
Co:Limuting Area 

(New York City) 
Atlantic Coast 
Mid-West 



Sewing margin lining on large end, i 
small end Trench, piecing and run-i 

ing UE. : 

IS. 4: 



Turning and turning pocket 



15-9 
8.6: 13.3 



4 15-7 i 



H.2 
5.^ 



J>i 



_3' 



: 9.O: 11.6: 4 28. 9 
:11.<: 14.9: » 26.3 



100.0 
128.6 



6.9 
3.9 



7.5 
6.5 

6vO 

6.5_ 



:* 8.7: 7.2 

:+44.4: 8.7 

:+53-8! - 

:4-27- hi - 



100.0 
120.8 



Pressing and pressing pocket 



Tacidng small end 



New York City 
Commuting Area 
(New York City) 
Atlantic Coast 
Hid»West 



8^: 

: 

3-: 
7-'; 



4^ 

*' 



7.U 
4.1: 

5.3! 
6.1: 



7-S 
6.7 



+ 8.9 
463.4 



7.5 
9.5 



100.0 

126.7 



7.3 : +37.7 : 
7.0 : 4.14.7 : 



1.1 : 1.2 



• Insufficient n'umber of reports to compute representative average. 



vs - : 
9.1)3l-6: 



1>6 : l.q : -18.8 - 



Source of Data: 



9867 



''^ '^Iv i 31TT f^-*ii ^ * * f ' "i 'i "Preliminary Eeport on the Analysis of Piece Bates, Labor 
Productivity end Consolidated Profit and Loss Statements, Uay 1933 and Angnst 1934 
for the Men's Neckweair Industry',' prepared by the Industry Heportisg I&ilt, Division 
of Eesearch and Planning, Nationalnfiecovery Administration, January 2, 1935» 



APPEITDIX "3" 



WACrES ABOVE THE laliniim; 17 THE i .ELI'S i'ECriVEAR Il'DUSTHY 

UiiDES THE .lATicFAL i.;dust::ial -xecovzry act 



■;7AC-E SCISDULES IH THE AG3EEME"T OF SEPTEMBER 1, 19:;:. 3ET".SE"J THE 
Ivffiil'S i^'ECX.'EAR alAirU ';XTU?.Er.S' ASSOCIATIOII OF iir..' YOHK, IITC. AND 
THE IHITED ITECIC^VEAE. MAKERS' UIJICIT ■ 

SCHEDULE "A" 
FIRST GRADE PRICES AS PER P.IRACRAPH FIFTH OF THE AGREEi.ffiIW 

?" ^ """ 

T 

Y DESCRIPTIOH OF TIE 

L 










s 




P 




p 




P 


T 




P A 


pi rp 


E 


T 


",. 


S I 


T 


E 


u 


R 


U 


Zl 


L T 


A 


G -3 


C R 


A 


R 


S 


I C 


C 


K S 


:: Ti 


T 


H- 


s' ■ 


P H 


K 


E I 


E I 





E 




JU 


, I] 


T 7 


T rl 


R 


R 


R 


R 


R 


S G 


S G 



Semi-raajrgin. . 40 

Full margin 55 , . , . ■ • ■ 

Hand made hemmed ties 

long piecing 27^ 

Hand made hemmed no 

piecing 24|- 

Stitched & turned ties 

6 sides hemmed. 31 9 10 

Stitched & turned silk 

lined 40 11 12 

Same tie if hemmed "by 

hemmer 4rf more for operator 

Stitched & turned semi- 
margin 43 11 12 ..,..■ 

Hand made pocket lined ■ ' " ' 

tie 30 

Long piecing-~-3 3/45^ for pressing--if split — 5(p for pressing 

Short piecing — 35* for pressing — if split~4\(2J for pressing 

All folded tie on stitched & turned work — 2C extra, for operator 

All folded tie on stitched & turned 7Tork~2^ extra for presser 

Small labels sewed on llo . 24 machine — 7-'^(p . . - 

Loop lahels if attached to customer's label — 3(zJ 

Square lahels — ll;?!' 

Square & diamond tacking— 7-|-^ 

2 rows tacking — 4(zJ 

Wide heiimiing — 7~s(f: extra 

Dampening— S(^ 

Week-workers— $16. or less-lS^ increase 

Week-workers — $17, or more-10^ increase 

Lined Ti^e _JJnli_ned Tie _ 

Slipstiching 48^ Slipstiching 48(^ 

Pocket turning 6^ Pressing 14^ 

Pocket pressing 6^ Piecing Pressing 4f 

Pressing , 14ji .__. 

Piecing pressing ^.-^ ^°^ 

78^ All other styles not mentioned 
above — 25^ increase 
9857 



-76- 
SCHSDULE I'B" 
SECOED G-HiUDS FHICZS AS PER PiuUG-HAPH i'lFTH OF THE AGHEELJllTT 



DESCElPTIOl'j OP TIS 



.„„., 


—"""-—"' 


■'^~-" 


,. '^ 


S 


P 


.,-- ; 


p 




P 




1 


P 3 


P T 


Tn 


T 


i^L 


S 


I T 


S 


U 


-3 


U 


7p 


L 


T A 


C S 


c a 


A 


?L 


S 


I 


C C 


i: s 


i: I 


T 


il 


S 


F 


H 1; 


E I 


E I 





jj 


s 




E E 


T IJ 


T IT 


3 


H 


H ■ 




H H 


S G 


S G 



Semi-margin sliiDstitished 36 

Pull-maxgin slipstitched 50 

Slipstitched hand made long -piecing 

6 sides hemming 25 

Hand made no piecing 22 

Stitched and- turned 6 sides hemiaing 38 
Stitched & turned sillc lined pocket 

tie 38 

Same tie if hemmed "by hemrner 

4:^ more for operator 

Stitched & turned tie semi-margin. . .40 

Hand made pocket lined tie 26 

Long piecing pressing — 3^(p 

Short piecing pressing — 3(^ 

All folded ties on stitched & turned 

work — 2(^ extra for operator 

All folded ties on stitched & turned 

work — l^:ip extra for presser 
Ti-;o piece stitched tie large end 

semi-margin 34 

Bias French short piecing points 

made hy machine 19 

Bias French short piecing large end 
semi-margin small end French point 

made hy machine 2? 

Same tie if turner puts linings 

into point -. 

One piece tie no selvages hemmed 

open or closed 17-?t 

Boys bias no piecing, no selvages 

hemmed open or closed 16-j 

Bias open end no piecing, "both 

ends lined 24f^- 

Pocket turning on two pieced ties 

machine made for both ends — 5^. 
Pocket pressing on two pieced ties 

machine made for both ends — 5f. 
Bias 0]i6h end no piecing large end 

lined no "selvages hemmed on small 
• ends 21 



7j 
9i 



6} 

5 



8-V 
9i 



9V 9~\ 



6^ 



7'r 



9857 



-77- 
SCHSDULE "3" (cont'cO 



IiESC:iIPTIOi\I OP TIE 







A 







s 




P 








T 




P ?. 


P T 


T 


3. 


I 


T 


n 


u 


U 


T] 


S T 


A 


c s 


C R 


R 


s 


L C 


C 


K S 


r: iM 



I H K EI. EI 

PEE T 1 T K 

2 R S a S G 



Slwstitching 46 

Turning pocke ts 5k ' 

Pressing pockets • . . S-;;- 

Pressing tie 12 - 

piecing pressing 3v- 

73 

Pockets t-urning on one piece 

tie for 2 ends 4^ 

Pockets turning on one piece 

tie for large end ».....-, 2h^ . . 

Pocket pressing on one piece 

tie for 2 ends..... ,...4;^ 

Pocket pressing on one piece 

tie for large end 2'>(^ 

Piecing for operators. ......■■ 3(^ „ 

Wide henming. ....'. ■'^(^ 

Heimning selvages for each . .. , 

end. 2^ 

2 Hon tacking , 3(* 

Small laliels ~ 3 sides ...,. 6k<^ 

Small latels — • 2 sides . . . .&(j: 

Square latels stitched on 

2 sides ... . -H 

Square latels stitched on 

4 sides ....^...I'V 

Square or diamond tacking 75# 

Loop labels for tacker 2j^ 

If separate 
Tacking points on French tie 

by hand — for each side 5^ 

Hand labels — • 25y increase 

For danrpening for presser 2--s(J! 

Week workers — $16.00 or less — 15'^ increase 
Week workers— $16.00 or more ~ 10^ increase 
Minimum vrage for triaiers — $15. 00 



9857 



-78- 

Appendix "0" 

OOIIFERENCE - Room 2062, Commerce Building 

August 2, 1934 

Re: ERIE IMECKfEAR MANUFACTURING COivEPANY 

MR. VINCENT: "Gentlemen, this is an informal conference as dis- 
tinguished from our formal hearing in view of the fact that you gentle- 
men from Erie, Pennsylvania, desired a conference and any action which 
might he taken is action which would have to he sutmitted, of course, 
to the various Advisory Boards, Divisions; that it is advisatle to have 
them present so that they would have an opportunity to hear what you 
would have to present, so that without further formality, we will hear 
what you have to say in the situation. Mr. Cragg, are you speaking for 
the people here?" 

IB., CRAGG-: "Gentlemen, I want to first express my appreciation 
of having an opportunity to lee present here, also to your Regional Ad- 
ministrator, It is through his cooperation that we secured the op- 
portunity from you people at this time instead of taking the usual 
channels, etc. " 

FiR. VINCENT: "I mentioned Advisers ; we also notified the Code 
Authority hecause any action which might he taken involves the Code 
Authority and consequently, Mr. Stetcher and Counsel Judge Walsh are 
here to participate." 

¥&. GRAGG: "¥e uome from Chimney Corners, Pa. We perhaps have 
wage conditions not similar to other cities. Mr, Farcus, ahout seven 
years ago went into the business of maiiuf acturing Men ' s Neckwear in the 
City of Erie, which has gradually grown into a considerahle plant in 
Erie, Erie felt the depression for. the reason that 70^ of Industries 
are engaged in the manufacture of -cotton goods.. They are now operating 
with the same skilled force with a limited' numher of hours each week. 
That is the situation in Erie. We have two neckwear plants in our city. 
The Penn Neclcwear Company and the Erie Neckwear Company. " 

M. VINCENT: "Are they hoth represented here?" 

MR. CRAGG: "No, only the Erie Company." 

"These two plants employ at the present time approximately 250 
people, all of whom are. out of employment at this time. The difficulty 
in the situaision I am speaking of in Erie Neclcwear is due to manufact- 
uring costs. Mr, Farcus, who is manager and a large part owner, has 
"been operating the Erie Company on a very close margin top. Cost for 
gross and has modern, up to date- plant. Plant within last two years, 
expended approximately $8,000 in order to give the health to employees; 
a modern, well ventilated place within which to work. His purchases of 
raw material,, silks, etc. are largely made in the City of New York. 
And his costs per gross and he runs his plant efficiently and economical- 
ly at approximately average of $17 per gross. In that cost, 

when I say $14.80 cost, I mean manufacturing cost without condition of 
9857 



-70- 
CONFERENCE - Erie Neckwear Mfg. Co. . 

general overhca.d. He advises me that en acco\mt of his financial situ- 
ation, he ca,nnot "buy for the sarae. advaiita,ge or same prices that many; of 
his large competitors do. His silks would 'cost I'O,' IS' ot 20 cents per 
yard more than the manufacturing in large tasinesses- can purchase on., the. 
market. That has teen the situation for' past year or so. He says he 
can't comply with lator Code "because to do. so iis would opei^atc at ' 
a lossf He could not sell his material at le'ss than cos-t and if he would 
attempt to get the cost under the Code it would put him out of» "business . 
"because his comioetitors would undersell him wherever he has trade. Ifou 
gentlemen are familiar with lleclcwear "bisiness; it is more or less .season- 
al, d-oesn't change as rapidly as ladies' wear.' Hot onlj^ make neckviear . 
for different seasons, "but patterns change and vou must move yo\ar stock." 
promptly when you are in season. Stock must "be moved in" advance sf , 
retail demand and if you let the time go "by, ' that stock Is out, of d.ate,. 
pattern is out of style. At this time, Mr, Fnrcus was o'bliged *o close, 
down. He didn't Want to violate the law and under the Code, he sajrs he. 
can't operate. 'This' re3\a;lted, in serious loss. 'Of course, all the^ orders 
for summer neckwear are gone. In addition, he has' lost good will- with ; , 
these customers whose orders were received and he has "been unahle to ,- • 
sell. Another factor is this: I think irf the larger cities, •la'bor .ds . , 
regarded as more or less seasonal. In EriQ, neclcwear plants operate .■ 
approximately 48 weeks in a yea.r.. Larger cities, I art -told, ogor 34. .; 
Erie is paying at this .time /per annum, would pro "ba'bly equal the scale that 
the Code has adopted and which is "being paid in the larger cities, which 
is a matter for this Board to consider. In addition, lir. Farcus.has . ■ 
considera'ble quantity of raw materials and silks which he will "be una"ble 
to dispose of, except at a serious loss. We feel, that under the circum- 
stances, Erie lleclcwear Company on account of different living costs, 
on account of Erie Keckwear ■ Company only a small capi'tal,on account: of 
the fact that he has additional expenses and costs 'which are due 'bo 
fagt that he is located in Erie and not in center, in ITew York, are 
things which this Board should take into consideration and grant him 
an exception so that he can operate. . I not only represent -Mr. Parous, 
"but a mam"ber of employees are present here, coming to Washington at 
their own expense, that feel deeply interested in it because of the ; 
fact that most of the manufacturing . he'ip are people who support their 
families. If this unemployment continues, you will have the City of 
Erie facing a serious relief proposition, Erie feels that, this plant 
should "be permitted to Operate. That these employee^ should not "be thrown 
out of employment. Young ladies circulated petitions through the City 
of Erie and a great num'ber of business men and citizens signed this. 
We will file petition with this Board to permit this plant to operate. 
Will call upon witnesses so that you can knovf the real facts in regard 
to the situation in Erie," 

WR. "VINCENT : "Being informal conference and desiring to get all 
of the information in respedt to the situational "believe we will make 
progress if we»ask direct questions. (Most questions directed to Mr. 
Farcus) 



9857 



-80-- .. 



CONFEEEHCE - Erie Neckwear Mfg. Co. 



Q,: You have figures showing what your "business is? 
A: $56,598.33." 

Q: How much during last year was spent? 
A; Considerahly more. Figures here. 
Q,: Can ysu state v/hat it was? 
A: About $15 or 'ilS.OOO more this year. 
MR. VINCENT: Last year more than this year? 
Q,: How much do the ties ^''ou manufacture sell for? 
A: 19 cents to twenty-five cents. 
Q,: Where is your market? 

A: New York City, Rochester, Cleveland,' etc. 

Q,: Could you compete with New York City? They are Competitors 
of yaurs? 
A: Yes. 

Q,: Do you sell your own products? 

A: Sure. , • 

Q,: Jo'b'bers and retail -trade? 
A: Jolehers and retail trade. , .■ . 
Q: Any cantract work? 

A: No, not this year. . ; ' , 

Q,: Tell us exactly the reason why, you cannot, pay, the Code, rates? 
A: I cannot pay the code rates for. -two reasons: Cost of material 
is tne reason and then because our credit matter is different than 
any ether concern in this line.. 

Q,: Your credit - "by that, you mean what? ,, ., 

A: I put all working capital into the -olant.. . 

Q,: You mean TDUfchase of mat.erial so that one of your prohlems is 
a higher cost df material than your com'oetititors. 
A: Yes. , \ 

Q,: Lahor cost? ... 

A: Lahor cost, I pay the girls all the business can afford to pay. 
Q,: What have j^-ou been paying? 
A: 19 cents doz.cn. 

Q,: Yau didn't follow code r)iece rate work rates? 
A: No. 

Q,: What did they cost you? 

A: 28 cents. , 

Q,: You were paying 19. A. difference of 9-|- cents. ' ■ 
A: Piece rate calls for 28-?. cents on one operation. Have got to 

keep girl as code says. .. ■ 

Q,: Brings your code rate cost to 31 cents. 

Q,: That is 12 cents more than the 19 cents you are pa^'^ing. Your 

chief Toroblsm is ytur lack of credit and higher cost of material? . 

A: Course then this londerselling problem, 

Q,: Fho fixes prices, customer or you? 

A: I fix prices. 

Q,: Then why d» you not charge more? 

A: I Cannot get more. I have to be in the market in order to do 

business. 

Q,: Then do you or does the market fix the price? 

submit your price on ths market. Then the fact is 

fix your own price, 

A: I fix my own price, but in order to keep my accounts, I have 

to give in to price. 



You have to 
that you don't 



9857 



-81- 
CCKPEREITCE - Erie Ileckwear L'fg. C'). 

Q,: When you do get the husiness, the. "b-a:"'er fixes the price and 
not you? 

A: You have to lose tusiness and have to trika their price. 
Q,: How much a dozen does your material cost vou. more than if "'■ou 
had good credit? 
A: 25 to 50 cents. 

Q,: Do you thinlc that it is a souid policy for H. R. A. • to take 
permission to take off from your lahor costs heloTr the Code piece 
. work rates enough to mpke up the additional cost or part of the 
additional cost of ^rour materials "because you haven't credit to 
take advantage of material market prices? 

A: If you want to know the truth, I "believe shoiild "be equal la"bor 
for everv'body, "but there is. certain things you are entitled to 
exemption. It is not a matter where the Company refuses to pay, 
"but matter where this Company has to sell "below cost "because you 
can't afford it. 

Q,: Do you thinlc it would "be fair for 11. R, A. to permit you to 
operate at a la"bor cost 12 cents per dozen less than in New York 
or in New Jersey or Boston manufacturers who jnakes the same tie, 
that is ties that sell from 19 to 20 cents retail? • 

A: I thiiik so. Because I do more for our girls than any other 
concern in the city are doing. " 

MISS SCHUIEDEEi^IAW: "How do vou mean, you are doing more for your 
girls? 

A: If vou will alow me a few minutes, you will see for yourselves, 
Q,: I want to know how your girls are. treated "better. 
A: A friend of mine "borrowed money, $200, to put me in "business. 
I was a good llnion man all the time. Still a Union man today. 
I took the money and "bought two little -mac'hines and cut goods. 
I taught my wife how to make it and she helped me. Started with 
idea to make living for myself. After a year or so, I hired dne 
girl in my house. I tought her how to make neckwear. Little '"by 
little, two girls, four girls, six girls, then I rented a little 
shop. In 1931. In 1931 and 1932, in payoff, girls made as high 
as $25.00 week. Thev worked more hours than today is true. ! ■", 
Q,: How many girls did you have at that time? 

A; 48. Last ^'•ear I hed to move. At that time we owned capital - 
Q,: When you had to move you were enlarging your plaJit ? 
A: No, we were f oread out. 
Q,: Your lease had expired? 

A: Yes. I looked over every "building and coixLdn't find a place 
except one place four "blocks away from my home. 
Q: Do you have an excessive rent charge now? 
A: No. 

Q,: I think that covers the -ooint. 

A: You asked me what I am doing more for the girls. I did not 
take a certain "building "because girls had to clom"b up three flights. 
Plant I got has so imich light and air, any plant in State of Penn- 
sylvania. Here is girls, will tell you same thing. As soon as 
"business is "better, will pay more. Last year, I established a 
farm for them, gave them vacation with pay. 

If a girl was sick three or four months, I ;oaid them full pay. 
When I made first 10 or 12,000 dollars, instead of keeping money 

9857 



COIJI'.ERE^JCE - Erie Neckwear Mfg. Co. 

for myself, I too'c all of ray' capital and put it into this plan't ' 
so girls health should "be protected, 
Q,: More sanitary? 

A: Absolutely. When W. E. A. caine out, I would "be glad to pay 
girls K. R.. A, prices, "but "business does not pay. Whether to 
shut down the "business and all thrown out of work or there is a 
way to "be found we oould stay in business and we all raalce living. 
I am willing to pay the girls the price I ara paying now and I am 
giving an agreement today or forever that any amount of profit this 
"business is making, I offer the girls a "bonus for my girls." 
MISS SCHNIEDii'iAAF: "We prefer wpges. " 

!«iR. FAHCiJS: "I cannot st?v: in "business. Cannot exist." 
Q,: Ho'" much does material cost you more? ' . . 
A: 25 or 30 cents a dozen. 

Q,: How raan^'' yards go into a dozen? ., . 

A: 18 and 50 cents more,. , , ' 

Q,: Would that silk cost you less if you paid cash? 
A: Prom 8 to 15 cents yard less. 

Q,: You. said that, the reason that you have to let go of- your, 
accounts is. "because you are undersold. Who would get that a,ccount 
if you did not get them? ' , ., ' 

A: Would say, Penn Neck'Tear ,Comr)any. 
Q,: Penn pay m.ore or less than you? 
A: I think they pay less, 
Q,: "You thinlc they are violating the Code? 
A: Would not say that, "but think Erie pays, more to girls. 
Q,: How many girls does Erie have? 
A: 50, .■■,.' 

■Q,: Hew many cutters? 
■ A: One. ■ ■ , ^ 

Q,; How much does he get? . ' . 

A: $50 week. ' ' ' ' 

Q,: How much did the 'girls earn before the Code? 
A: Sirae thing. 

Q,: Did you "oay that .prior to Aiogust,' 1935? 

A: Ko, we adjusted price little .hig'ner according to price 40 hours, 
instead of 48. 

Q: How many of the girls earned more than $13 week? 
A: 95^, 
Q,: How much? 

A: As high as $15, $18, $22 week. 

Q.: Hew manv working now? How many num"ber of girls? 
A: 50 instead of 85. 

Q,: When did you have 85? . , ' ', 

A: La.st year. ' ■ [' 

Q,: Hew ma:ny did Penn have? 
A: A'rout 150. 

Q,: l/nvse accounts vou would lose would, go to Penn Neckwear? 
They ai-e one of your principal competitors? . • " ,, 
A: That's right. " "' , ' '.' ■ 

Q,: If they were paying the same wage scale, would you be on a 
' better competitive basis? 

9857 



-83- 

COKFEESNCE - Erie Neckivear Mt'e. Co. 

A: No. They Itv^y silks for less than I. 

Q,:. He has credit. 

A: He has cash. 

Q,: What about manufacturers that am snail and they have to "buy? 

A: In New York they can 'buy different. I got to come for Erie 

to New York to huy. Wc Ijiow especially the people who knoi^s neckties 

in New York people come and ofxer you to ti-ay. In Erie we do not have 

that . 

Q,: Are your rates lo^'er than those in New York? 

A: No, same rate. 

Q,: Are you sure cf that? 

A: Code sets same 'price for everyhody. 

Q,: Code has differential, doesn't it? 

There is no mentioned differential in the Code. The Code oper- 
ates to create a new and recognized and admitted differential in that 
there is a provision in the Code that under no circumstances is a 
figure to he paid lo\Ter than those of A^igust, 1933, in which the 
rates in New York was higher than outside of New York. Pennsylvania 
need only pay what it was paying in 1933. 
■ ME= VINCENT: Mr. Farcus, what about this: Inasmuch as the Penn 
Neckwear is your chief competitor, gets accounts that you lose, sup- 
pose that yovi were on the same ?fage scale. Your cost 19 'cents 
dozen and Penn Neckwear paid same rate and had same cost, would 
not they still be e.ble to undersell you on accouait of better mater- 
ia,l price? 

A: That is right. That is vliat I claimed before. 
Q,: Now then is a differential in your favor going to help you un- 
less you were gi-yen a differential below the Penn Company? 
A: If it is in the same town, sarie place, will have to struggle 
along vj'ith it. • 

(<i: Your cost is 19 cents or 31 cents as ^onder the Code for labor. 
If the Penn people paid' same rate, they wo-old still be able to 
undersell you because their materials cost less. Do you think giv- • 
ing you a differential would help you at all? 
A: Sure. 

Q,: That is, if you were -given a differential from the Penn Company? 
Do you think we can give one plant in same town with two plants, a 
differential? 

A: Penn Neckwear can pay cash and we-.caii't do it. 
Q,: It seems not so much a labor cost problem as a material cost 
problem? 

A: Had hard struggle and if your labor is sacie as with - 
Q,: How much less than Penn Company's rates would you have to have 
to let you conpete with it on an even cash basis? 
A: I don't want to mention. Wliat I mention is our own problems. 
With us is a matter we do not nake it. If we made it, I would be 
glad to give it to them. 

Q: Penn Company is chief competitor. When you lose account, you 
lose it to Penn Company? Penn Company is one of your chief com- 
petitors that -undersell you because they have capital and can buy 
materials much less than you can? 
A: Right. 

9857 



-84- 
COIIFEIffiNCE - Srie ITecfeear Mfg. Co. 

Q,: You sny that unless you Ijave you can't compete with thera "because 
you must have a lahor cost less or lo?fer than theirs. ' What I want 
you to tell us is how much lOTver your lahor cost would have to he 
from the Penn Com-oan:/ in order to let yoti comiDete with them? 
Q,: You do not want a differential between the Penn Com-oany? Sup- 
pose U.R.A. enforces code rates and makes "both you and Penh Com-oany 
TDay code rates, would you he satisfied? 
A: I can't stay in business. 
Q,: In other words, it is material cost? 
A: It is the most imiDortant thing. 
Q,; Kow can we overcome that cost? 

A: Priends say to me how would he if you got a loan for 5 to 10 
thousand dollars and Paid the Code "orice. I said I would he hapoy. 
Q: What are you now asking us for? 

A: What I ask you now is it makes no difference how you shall fiz 
it. Pind a '-/ay how to stry in business. I am vdlling to work with 
you. Just show us a way how to do it. 

Q,: Pann Comioany undersells you, gets materials at a lo"^er cost than 
you. If they are able to do thf^t, .nv' can you compete with them if 
you are both on the' same labor cost at 19 cents or 20 cents a dozen. 
A; Because I live lower than they live. 

Q,; Would your situation be helped if Tsnn Cora-oa-ny were paying Code 
rates? ' ' ■ 

A: Wo. 

Q: Why? ■ ■• 
A: Because I am in the same -place. 
Q,; Because ynu have competitors in TJew York; 

A: I have comToetitors i'n r'ew York, too. Por an example: I got a 
letter from a De-cartment Store in Columbia. I sent him 10 gross of 
ties. I sent him a bill. He writes rae letter that I shall give 
him 7 -oer cent or he won't keep it. I wrote to send it back. 
Q,: May I ask you what would hat)-Dan if you w?re permitted by IT.R.A. 
\iO pay lower wages than the Penn Comoany and thereby you would be 
getting business av^ay from Penn Com-oany and then their girls would 
be out of ?rork? 

Q,: Do you think it would be fair to ask your girls to work for less 
because you haven't got ca-oital. The Code rr>te, according' to your 
figures would cost you 31 cents -oer doE:en. You are -oaying about 30 
cents per dozen mor:^ than your material cost for the Penn People. 
That being' true, if you were only -oaying a labor cost of 10 cents 
per dozen, the Ponn people could still undersell you? 
A: They could, but would not do it. The big guys are willing to 
work for pennies and not dollars. 

Q,: What is the -iDercentage of labor cost to his cost and what is 
your material cost to his cost? Wliat part is labor and what part ■.:o'-- 
material? 

A: Labor 18 or 19 xjercent. 

Q,: Auditor, what part is labor and what -part materials? 
AUDITOR: Slightly in excess of 20 -oer cent for labor a.nd little 
bit less than 80 percent for material or price cost. Labor is 20 
percent -olus material. Material is 80 percent minus. 
A'UDITOR: Mr. Parous required me to make an analysis. There is one 
thing he doesn't bring out loroperly. Prom an analysis of his accoujits, 

9857 



-35- 
CONTEEEKCE - Erie lleckwenr Mfg. Co. 

■because I haroen to have li^en sn pccnuntant for 40 or more neckwear 
manufa.cturers, - his largest competitor is not Penn Neckwear, but 
the market lying -^utside. Penn doesn't roToresent more than 20 per 
cent of his iDusiness. 

Q,: So that is a matter of comolinnce. In other words, if the W.R.A, 
rates "were enforced, then he would he on a fair hasis of competition. 
AUDITOR: Because then even thou.'rih hecause of his credit situation, 
he is not ahle to "buy as orofitahly as the next man. He would he 
then TDlaced on the list a reasonahle oasis "because pride would he 
materially higher tho,n they would he today. In this selling of 
merchandise, there has heen no definite -price. 'A few concerns are 
• ahle to hold utd a lorice. But the concerns in which he is directly 
in competition, although he evidently don't see it, have heen sell- 
ing merchandise. Because the market is not bringing more than 
thirteen or fourteen dollars. '. 

M. STETCHER concedes. 

Q,: (to Auditor) Your vrork makes you say that the hest relief we 
could give to Mr. Parous would he a strict enforcement of the Code 
provisions? 

A: Mr Parous case, because this concern ^as su-oplying his with 
goods and he had unlimited credit. They were manufacturing and giv- 
ing him all the goods he needed. At end of the year, they said they 
could not afford to do it anyiuore. Mr. Parous at that time asked me 
what he could do. I said, file certified statements and upon so doing, 
retain e.s much credit asryou can. Mr. Parous said, would you be in- 
terested in accex>ting this -oroposition. That was in Pebruary of 1934. 
At that time it took about two months before we got the various 
credit houses to 8.gree, to - eztend him lines of credit. They were con- 
cerns who had merchandise .-oroblems themselves. He had the following 
set-up." 

*AUDITOR went int.o detail concerning the set-UTo of the Company.* 
"This instance - A nartner was to invest money with him and was to 
enter the business, hut his relatives did not permit him to go into 
that business. Mr. Parous from that time on continued to "oay wages 
in order to get -orices. Mr. Parous' cost for material, buying from 
houses like the Metronolitan and tho.se concerns. Were financed by 
factory.. After getting a little more credit and getting confidence 
of factory houses and seme of direct houses, he wa,s able to reach 
merchandise cost, although it is still higher than competitive buyer 
in Hew York. Then along came this condition. He was getting higher 
prices than the other manufacturers. Ths buyer started to find out 
he could buy merchandise cheaioer. Mr. Parous wa.s -placed in an un- 
fair competitive basis. Were able to manufact-are -prices. Mr. Parous 
was placed in that -position of -unfair corTOetition. Wliether relief 
comes in from our general enforcement of the Code. — " 
Q,: "How much vacation did. these girls get? (To Mr. Parous) 
A; One Tjeek. 

Q,: How long did they have to work in order to p-et that vacation 
with pay? 

A: They had to work one year. 
Q,: How much pay? On -present work rates? 
A: Gave her amo-ant she made most in one week. 

9857 



-86- 

CONF^IRENCE - Erie V.eclrweor Ufg. Co. 

AUDITOR: Would like to ''•a.iow if otLer, Men' s' Neckwear Manufacturers 
have that. Merchandise is summer merchandise. Has to "be removed 
in next threa weeks. If not, he sui'ie'rs loss. He has received un- 
fortunate newspaper Tjuhlicity. Has ii-Toaired his "buying. -, He is 
TDlaced in a position in which he is going to he consequently que.a- 

■ tioned. If he is -out on same; "basis and given equal reasonahle op- 
portunity to stay in "business as they axe, that is all he is going 
to ask. 

Q,: Your advice to close mo shoTj was then not good? 
A: This way at least, he is ahle to have only a fired overhead. 

; Otherwise it would have cost of selling and disposition and that cost 
would go into loss of $800 or $900 month. He has so much invested 
in the plant . . ' ., 

Q,: Is it an overexpansionT 

A: Over expansion of space. Had source of supply with. man in New 
York. 

Q,: Judge Walsh's question is this: That it was the unexpected and 
unfort-unate loss of his credit that directly led to the situation 
he finds himself in now? \ : 

A: Partially true. He had to see what he could do. He did oper- 
ate. Practically -only- loss .a"bout $1900. Loss in first part of Spring. 
Able to "break even during months after that. Was gradually "build- 
ing up credit. 

Q,: What was attitude that plant was closed down from New York dred- 
itorsT 

A: I said I would render certified statement that he is honest. 
Wanted to know, - 'Are we. going to get 100 cents on a dollar?' 
Mr. Parous would not only lose his capital, hut would have to Liqui- 
date his loss to creditors. ; 

Q,: I "believe you and Mr.- Parous have given us a very elear picture 
on the question. It is very o"bvious that if all Neckwear moxkets 
had complied with the' Code, he would' "be a"ble to remain in husi- 
ness. The Code Authority in the process 'of getting organized has 
finally put itself in position where its "budget is a"bout to "be ap- 
proved. Lahor regulations in effect as of yesterday. Don't you 
think that ■ enforcement through the a"bility of the Code Authority 
financially plus the use of la"bels is the "best premise of perman- 
ent relief he can have. The N.R.A. cannot deal with the e^uestion 
of credit. One of ■ la"bor fa.ctors. To o"btain compliance appears to 
"be first essential step. You suggest something be done for it im- 
mediately. I think you can see the difficulty of N.H.A. attempting 
to grant any special form of relief. If fnat were done for him, of 
course, immediately there would "be a complaint from naturally, his 
town competitor. 3e an act immediately known to the entire indus- 
try and possi"bly an added reluctance to comply with the Code. It 
appears to me the most immediate relief is to comply with la'bels. 
A: If a man has $3,000 working capital and he is stopped and now i 
he must pay that working capital and he is forced, because of the \ 
stoppage of these weeks, the man is no longer in business. ^; 
Q,; Mr. Edwards suggests that this is a Compliance question. He 
further suggests that if the matter is laid before Compliance, it 
is not his policy to put a, concern out of business. What Compliance 
may do with your situation, it is quite impossible for us to state, 

905r 



C01IB"'1:HSNG1 - -Srle Keckwsar Nfg. Co.. , , • 

It is true tliPt his comDetitor is now "before Corirplisnce. - We can 
give no assurbnce nor can we ma]oe s'uggestions other than it would 
TDOssihly be for him to make rs complete a disclosure. 
MR. BAHSI-IBCIM: ■ If I may enlarge on' who t Mr. Vincent has said, it 
doesn't, of course, bind the Pennsylvania State Board involuntarily 
\7hen they submit all their evidence. It is spread over an appre- 
ciable length of time so that in that way he can liauidate his ad- 
justment over twenty, thirty or forty ^ireeks , whatever. may be nec- 
essary. We have had as high as eight men .in there and we have gone 
into this matter in some detail.. 
; MR, — . : I would like to sav a.W'-'rd or two about the Ponn Keek- 
wear. They have Daid $200 back wages. We have told Mr.- Farcus he 
will not ha.v3 to -oay back \7£iges' immediately. We will allow him a 
Long period of time. He does have an excellent factory, nice light, 
sanitary conditions. I believe that something should be done to al- 
low Mr. Parcus to make it possible for Mr Parous to OTjerate for this 
reason — that this matter hrs become a ~~ublic is.?!ue and- in headlines 
of Erie newspapers. . 

Some arrangement should be made so that these concerns ' can go 
ahead and otjerate. . , , 

MR. VIKCSWT: I think the nature of those newsToaper headlines are 
quite unfair -to II.R.A. We have here disclosed that credit is one 
qf the major factors. Furthermore, if the:facts laid before us are 
true, if the Penn Ueckwes.r is -oaying less than this firm are paying 



AUDITOR: Analysis of their books show that they are ijaying exactly 
the same. ' 

MR. VINCENT: Code rates are not in .effect. Code Authority is now 
for the first time ex-oected to bring about enforcement. I think 
that you must also take this into consideration while this is one 
industry, it is quite broadly disbursed throughout your ma.rkets. 
Could ha-rdly be exioected th£it the Code Authority should be function- 
ing es it ought to be functioning from now on. Co you want to make 
a statement, Judge Walsh? 

Q,: Would like to have Dowd explain certain corres-'oondence. Why has 
the question of Interstate Commerce entered into this case. 
A: Very frankly, when Mr. Parous told us he did not comply, the 
matter was iDut into the hands of an attorney. The Code Authority 
admits that due to delays under which it would have no control, has 
been very recently been more or less a name ra.ther than an organi- 
zation. As for as the management of the Code Authority is concerned, 
as soon as it's investigators throughout begin, it will be xmiformally 
against all non- compliance members of the Code Authority and will not 
be centered in Erie, Pennsylvania. 

AUDITOR: He is in an unusual position. He has to show that he has 
to "oay back wages, that he has no way out. 

MR. VINCENT: We have no control over baick wages. I understand 
from Mr. Dowd that they will spread that over a period of time. On 
the one remaining point, if any relief is granted by way of a dir- 
ect differential, you can see from figures submitted here, that if 
there should be a reduction from the 19 cents which is already. 
AUDITOR: Out of the question. Willing to pay more. 
MR. VINCENT: Any reduction from Code rate would be far less than 

9857 



C0HFEHE17CE - Erie Nec^crrear Mfg. Co. ., . 

STifficient to cover the disadvantage which he suffers from his ma- 
terial costs. " 

MR. VINCENT: "My view may te stated in this. v'ay. If at this time 
just as the Code Authority is for the first moment, expected to 
"bring aljout compliance ty being able to finance 'the activities by 
its compliance, by use of labels which, of course, we could not give 
to the Penn Comioany and should not give to any other. plant, the ef- 
fect would be to ".;very greatly weaken the Code Authority's ability 
to bring about any >ind of compliance and he can find the mosis se- 
curity. _ ; 

Mr. Farcus, Mr. Cragg, I think you already know „ our views and to 
bring it down to what Srems already to. be our decision, it 'doesn't 
seem to bring it down to any size which would justify any differen- 
tial. ^ There is, as explained, a prospect and an immediate one of 
Code enforcement which will give him the best security. Mr. Edwards, 
• as DeiDuty Administrator, authorizes me to" say, th&t there will be 
cooperation in his division with the Code Authority to 'bring that 
about. 

Mr. Edwards suggests that it ought to give, you the best labor 
available. We are not stating unon the unreasonableness of wage 
rates in other codes. I will not think that wage. rates in other 
industries rre likely to hurt Men's Neckwear if the Men's Neckwear 
rates are enforced in all -oarts of that industry. I don't believe 
that it is possible to sa.y'more on this subject at this time. We 
will cooperate just as energetically with the Code Authority as it 
is possible for us to do. I think that we understand, your situation 
and hope you can find immediate relief in enf orcem.'ent of the Code. 

The outstanding •fp.c tor is one of credit.. CerJ;aihly, the N.B..A. 
is not_in-any degree resiDonsible for that. I suggest that' is is a 
subject that you immediately take uio with Mr. Dowd. A very obvious 
willingness to take such action as will relieve you. 



CONFERENCE on' Thursday, 
August 2, 1934. 
Room 2062, Commerce Buildijig 
10:' o'clock A.M. 



9857 



-89- 

v;ages above tee laniJiUM iii the code of pair competition for the uim^Q 

■■■ . ' ■ ■ HEGKiiraAR INDUSTRY 

■ ' ■ ■ ■ ooOoo. . 



ARTICLE IV — WAGES ~ EROli- THE PiiOpOSED CODE FOR THE 

IffiN'S .'iJEGKlfEM- INDUSTRY 

As Llodified "by the 

BOARD OE DIRECTORS' OE' THE L'jEIT'S NECKEEAR I/AiTUEACTURERS ' INSTITUTE OF 

ALERICAH, INC. 

Noveiiiber 30, 1933 

1. Except as hereinafter provided, no employee shall be -paid at less than 
the rate of thirteen dollars ($13. 00) per week of forty '(40) hours, 
hefore January 1, 1934, and per week of thirty-six (36) hours thereafter. 
In the southern states as hereinafter designated no employee shall he 
paid at less than twelve dollars ($12.00) nev week of forty (40)hours 
"before .January 1, 1934, and per week of thrity~six (36) hours thereafter. 
For pu];-poses of this article -and .section, southern states shall include 
Alahamfi, Arkansas, Florida j -Georgia, Louisiana, Mississippi, New Mexico, 
North Carolina, 'Oklahoma-, - South Carolina, Tennessee, Texas and Virginia. 

2. Th^s article establi-shes a minimum rate of pay, regardless of whether 
an employee is compensated on a time rate, piece-work, or other "basis. 

3. A person whose eam-ing capacitor is limited "because of age or physical 
or mental handicap may -"be employed .at a wage "below the minimum esta'blished 
"by this article if the -employer ,o"btains from the State a^"tliority designated 
"by the United States Department of Lahor' a' certificate authorizing his 
employment at such wages and for such hours as shall "be stated in the 
certificate, provided that no such employee shall "be paid less than any 
minimum piece rate esta'blished for his occupation "by this code, and in no 
case shall such employee receive .less than ten ($10,00) dollars for a 

full week's Yrork as esta'blished , "by this code. Each employer shall keep 
on file with the Code -Authority .a list of all such persons with suah 
information as" the -Code Authority may prescribe. 

4. Beginners; for- a- learning period of "eight (8) weeks, shall receive 
at least' the' tegular piece work rate currently in effect, with a guaran- 
tee, of at' Teast- -t-en ($10. .00). dollars' per full work week as t)rovided herein. 
The number "of beginners employed by any member of the industry shall not 
exceed ten per cent (10^) of the total number of employees employed by 
him. No employees shall be classed as a beginner after his first eight 

(S) weeks of employment in the industry in productive operations. 

5. The follovdng shall be the minimum scale of piece rate wages in the 
industry and' no- member of. .the. industry shall pay less than any of the 
rates p'r'o'vid'ed -therein: ........_ 



9857 



■ -90- 
Hand-Itlade Ties Hemmed 

Hemming .,'.... $.13 

Piecing 03 

Slip Stitching .45 

Piecing Pressing ...■;... i . . . . .03 

Pressing. , . ;,.-. .10 

Total $.74 

Hand-Made Ties Lined 

Sewing Margin Lining $.20 

Piecing 03 

Turning Pocket s. •■04 

Pressing Pockets 04 

Slip Stitching.. ..... ..i . ,' 45 

Piecing Pressing 03 

Pressing t ' .10 

Total $.89 

ivIachine-Made Pocket Lined 



Operating - Lining .■ •••.•' $.0975 

Piecing ....•.....,., '.0325, 

S'-onning up '.■'..'.''.. .0775 

Pocket Turning .'. . .0275. 

Pocket Pressing 0275 

Piecing Pressing. ...... '...'. .0275 

Pressing. .08 

Turning. ..:.....'.. .08 

Total $.4500 

Ivlachine-I.iade Margin 2 Piece Sha'ce 

Piecing Pressing, $.0275 

Sening Lining* 1825 

Piecing ,-.■. 0325 

Running up. » G85 

Turning and Pressing Pockets. 075 

Turning , » 085 

Pressing, , 085 

Heck Stitching .0325 

■ ., ■:. . ; ■; Total $.605 

Machine~Hade' Unlined 2 Piece Shape 

Hemming ...:.. $.0975 

Piecing 0325 

Running up 075 

Piecing Pressing 0275 

Turning 08 

Pressing. , 08 

Heck Stitching .0525 

Total $.4250 



9857 



-91- 

Fi-ench Tie 

Sewing Point s and -oiecing) ' $.10 

Rimning up with stp,jr ) 

Turning; ; «>5 

Pressing 05 

Press Joints and joinings .02 

Total $.22 

Wide hemming - one side ;. , . $.0325 

Wide hemming - both sides 055 

Tackers 0325 

Label Severs, 0425 

Where rates for operations or for st^^les not covered by the above clas- 
sifica-tions become necessary, the Code Atithorit;'-, x'ith the a-iroroval of 
the Adnunistrator, shall establisil proper minimum rates consistent rrith 
the above, 

6. llo cutter shall be paid.e.t less than _t,he rate of thirt.-/-f ive dollars 
($35.00) ver i;jeek. 

7. Female employees performing the same i/orl; as male ..employees shall 
receive the same rate of pay a.s male emplo/.^eps, 

8. Piece rates and hour rates that were being paid on October 6, 1933, 
in e::ceGS of the minimums provided by this code sliallnot be reduced. 

9. In eveir/ neclaTear plant in the industrs^" the emploj^er shall post in 

a conspicuous place, the minimum wage rates provided bj'- Article 4, Section 
5, of this code and shall similarly post the the langiiage of Article 4, 
Section 3 together with the piece rates above the minimum set in the code 
prevailing in such plant on October 6, 1953, and shall file with the Code 
Authority/ e.n identical list of such piece rates prevailing in the prevailing 
in the plant on October 6, 1933, 

10. A.ny chs.nges in the "oiece r^.te or week v7ork rates established loy this 
code shall be made only upon a. report of the Code Authoritj^ and approval of 
the AdrainistrPotor, after such. notice and hearing as he ma^Jr prescribe. 



9857 



-93- 



IITTII 



APPENDIX "E 

waghs above ti-es niiTiLuii iii the code o? eair coiipetitioii eoh 

• ■■ the ■l.nSII' S' HECIWEAH Il-IDUSTRY ' 



HEPGRTBY ¥;-ia.VI'ATG WOLE, -I1TDUST3IAL EUGIivTETJH,' OE IG"./ YOHK, \t.y.,TO 
THE CODE AUTHORITY OE THE i.iEK' S HECIC»7EAR INDUSTRY, APRIL 26,1955. 

i'J , 'Irving Wolf was employed "by the Industry to study 
■ ■ ■ The Piece-u'ork Wage Pajnnent System) 

■ ■ " ■ W. Irving T/olf , ■ 

17 East 42nd Stre-Bt, 
Nerf York. 

: April 26, 1935 

Men's Keclnvear Code Authority 
432 Fourth Avenue 
Ne^T York City 

Re: Adjustment - Piece j'ork Rates 

Dear Sirs: 

It has occurred to ne that the ne:norandun below with accom- 
panying Exhibits may be helpful to your Deputy Administrator in reach- 
ing a conclusion in this matter: 

EXHIBIT 1. Schedule prices paid in New York City in first grade shops 
oiDerated under Union regulations. 

Present Code rates avera.ge 31,1^3 under these New York City 
Union rrtes (ran-e 2').9^j to 45. 2'^ on individual styles.'' 

. Present Code rates average 22. 5 o below rates paid in second 
. grade Union shops and v;ith the elimination of tie if3 which 
is claimed as obsolete, the Code average is 2 M"o lower. 

Average ra,tes paid in shops, grades #1 and #2, exclusive 
of ties #3 and #7, show Code prices 22.5^3 lower. 

EXHIBIT 2. Shows New York City lahel sales have increased in dozen vol- 
ume, particularly in the low priced groups, for the first 
three months 1935 when compared in percentage with the five 
months perios August to December, 1934. 

EXHIBIT 3. A and 3 exhibits show suggested rates as requested "by your 

Committee and the Chairman of the Code Authority at the meet- 
ing held in Washington, Thursday, April 18th. 

These rates are not arrived at in any scientific manner but 
are based purely on the present composite figures, with ad- 
justments made in order to equalize ea^rnings. The study of 
these figures will show certain inconsistencies, made nec- 
essary in order to meet the composite figure. 

Please note that the rates in New York City Metropolitan 
a,rea are ca.lculated on a liasis where Code nrices are approx- 
imately 22.5fo less than the suggested figures for the Metro- 
politan area. 

Respectfully submitted, 



WIW:JIC 
9857 



y. IRVING W'OLE 



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APPEITDIX "?" 

WAGES .GOVE THE hJ^Ikm' IK T?:Z CODE OF PAIS. CO?.i""ETITIO» FOE THE 

ME1\'S HECKWEAR II'Ll^S^bY 

ooGoo 

Price List To. 1 

Attached t Code 'AUtnofity Balletin V.o . 2, 
■ -January ?;9, 'l?oo 



The following -schedule of rninim-.iin "oiece 'rates have been a,doioted "by 
the Vifpi^e Rate Committee as ■standard for the Industi-y: 

FKENCH WASH TIE rates are identical with those ivrolying to the No. 6 
French Tie vrtien the lining is not stitched to the tie. See ¥.o . 17 when 
lining is stitched to Ho. 5 in wash ties. 

l\To. 8 — jiachine ' Made • Two Piece Tie, Large End Open "''iargin 
Lined, Small End French: 

Per 
Doz. 

1. Piecing pressing . . i^ .02 5/4 

i. Sewing lining ' .124 

3. Piecing • .03:5 

4. Sranning u"j '^^% 

3. Turning f.nd nressing pocket . O-i^- 

5. Turning • . -OB-g- 

7. Pressing . .■.'.'.■.'.' • •082' 

8. Heck StitCiiin'g .■...'.'..' -OSz . 

■ ■ ■ " $ .51t 

No. 9 — "''achine Made One ?i'_ce Lal'ge End Fall 
Margin Lined, Small' End' Hemmed: 

Per 
Doz. 

1. Sev/ing linings on laage end ana. 

heiiiiaing small end d 'IS-j, 

2. loinning up -OS-t 

3. Turning and loressing pocket .042- 

4. Turning -OSi- 

5. Pressing 'OSg 

5. Heck stitching ■. '. . ' .0^ 

^ .45^ 

The above rates are based on the machine mpde tWG--oiece margin 
lined tie but tne following operations have been taken off: 

piecing -Dressing ■ . .' ' * ' * * '^' 

Sewing lining . ' . . ...'.' -06 

Piecing .■ ^^4 

Turning and pressing -nocket . -^p 

V . I'o 
S8o7 



-98- 

As the total cost of manufacture of the two-piece mfichine made 
margin lined tie is 50^^., the cost of this tie will he 'ibh<t: . 

jIo. 7 — 3oy's !V:achine Lade, Open Margined Lined Large End, 
French Small End Closed, Short Piectd Tie: 

Per 
Doz. 

1. Sewing margin lining ^ nd. amall end 

piecing and running ud 5 .12^ 

2. Turning . . .04 

3. Pressing .04 

4. Turning .01^ 

5. Pressing loocket .01-g- 

6. Tacking small end .01 

■ r-^ 

Specific tions for Boy's Ties 

Boy's ties shall be 39" or shorter. If longer than 
, 39" the regular rates for men's ties sha.ll be paid for 

the various shaioes or styles. Rates for boy's ties shall 
not be more than 15) lower than rates for men's ties, of 
the same style or shaDe. As the boy's tie Ko^ 7 is the 
sarae shape as the men's tie To. 7, the 4c. difference taken 
off the boy's tie is made up as follov;/s: 2c. from operat- 
in^;., Ic. from, tvirning, and Ic. . from pressing. 

>To. 10 — Basted. Tie, Hemmed: 

Per 

, . . Doz. 

1. rlemi'fiing ......,..- i .13 

2. Piecing . , , . . ' .03 

3. (a) pasting . , .35 

(b) Turning tie over .05 

4. -^'iecing pressing .03 

5. Pressing . .10 



.71 

If this tie is run up, add oc. EXTRA for this operation. THE 
BASTED TIE is being manufactured in some instances in place of the 
slipstitched tie. . ..... 

I'o. 13 — .3astv:d.Tie, iuargin ^ined: 

... Per Doz. 

1,. Sev/ing margin, lined ............. • .20 

3. Piecing,.....,.. .03 

5. Tu.rning Dockets .Oh. 

<':. Pressing pockets .04 

c.' (a) Basting ., .35 

(b) Shirning tie over^ .05 

6. Piecing pressing .03 

7. Pressing. . . , . .10 

.... ,^ .86 

9857 



-99- 

,. If tais tie i s ; run' up ,„ add 5c. BX TEA' for this OTDeratipn. THE BaST- 
ED TIE is being mmufactared in some instances, in lol^i.ce of sli-ostitched 
tie. 

iNio. 14— machine huAe One-Pi ece Tie Pocket Lined Large End, 
Small £nd Hemmed: ■ . 

Per Doz. 

1. (a) Lining and H'^^mming m= .07:5 

■(o) Eurining up ■. ". •. .-.•. . .'. . . . .07 3/4 

2. 'Pocliet turning .-.•.-.■.•. .-... ... . . . .01 S/4 

3. Pocket pressing .'.■.■. ...... . .- ': . ... .01 3/4 

^, Pressing .' . . . .08 

5. 'Turning . .08 

' ' " ■ ' ■ ..,.,.. ;..■._ r, .34i 

lIo_. 16 — Wash Tie, iv'acbine Ka.de Unlined, Tv/o ^iece 
Shape, Closed Both Ends, -lemmed: 

Per Doz. 

1. Hemming i . . ■ . ' ■. . $ .07 

2. Piecing • .03i 

3. Sunning up .07^ 

.4.- Piecing iiressing .03 5/4 

5. Turning .- . .Oc 

6. Pressing .08 

' - 3 736?; 

ilo. 16-A — Vv'ash T-ie, Lachine Made Unlined., Tvro Piece 
Shape, Closed 3oth Ends, Hemmed, Inner Lining 
Stitched to, Tie^: 

Per Doz. 

1. Hemming J? .07 

2. Piecing . • .03-} 

3. Punnihg up .072 

If lining is sewn to tie at the sjume time 

." 'tie 'is ruil Up; sewing of lining extra . . .04 

4. PieciAg -pressing .02 3/4 

5. Turning -05 

6. dressing . . . . i , .08 

.- ■ ''f .38-2 

HOTE: If "inner lining' i's 'seWrr to tie, but. in a' separate operation 
and not sewn' in with' the running up, the' price will be. 5c. instead 

of ^c. as noted above. 

Ho. 15 — Hegular French Tie sath the Exception Tnat 

the £inds -Are IJdt Tacked: ■ ■ . 

■ ■ • ].' Per Doz. 

1. Sewing points <^ piecing end .) $ .10 

Running ud with stay i 

2. Turning -C^ 

3l 'Pressing ■.'.■.■.•.-.•.'.■ . , -05 

4". ' Pi-ess' joints and joinings . . ^ . . . . 

■5. Pastin-; ends, if done -Ql 

$ .21 

9857 



., -100- 

This is regular French tie with the exception that the ends are 
not tackecl. You are permitted to taJce off vc for the tacking of each 
end aiid are, therefore, perraitted to manufacture this tie for 21c. 

: 0, le-: — ash Tie, r achine Lade Unlined, IVo Piece Shane, 
Open Large End Hemned, Snpll ^nd Closed Hemmed, Inner 
Lining Stitched to Tie: 

. . ■ ■ ., Per Doz. 

• ■ 1", Hemming •..«..<..«.<>«*««s> .OS 

■ • ' 2', Piecing- "....... .034- 

.' • ■ 'o, Eunning up. , t . . « . . .' .OV-r 

• • " ■ ' If lining is' sevn to tie at the same time 

■ ' tie is run utd, se^-in;?; of lining extta. . .04 

4, Piecing pressing. . . • .02^ 

5, Turning .06 

6, Pressing • .08 

$ .40| 

KOTIi: If Inner lining' is se\7n to tie, tut in a separate operation, 
and not sexna in i-'ith the • running uo, the price v/ill be 5c. instead 
of .4c. as noted 8,'bove. 

If this tie is made Trithbut inner lining being stitched to tie, the 
price then ^-ould be 4c. less for not stitching same to the tie, but it 
will be necessary to add 2c. to the turning making the turning 8g. on | 
this tie instead of 6ci , the total difference when this tie is made this 
way being a„ net of 2c. less per. dozen. 

InTo. 17 — French Tie* Inner Lining Stitched to Tie: This con- 
struction is largely used in low-nriced Vfash ties. 

. ■ • • ■ Per Doz. 

1. Sewing points, piecing and running up 

with stay if lining is sewn to tie at the 

same time tie is run up $ .13 

. . ■ (if lining is operated separately, price for 

the above operationswill be 14c.). 
. . ■ 2. ■ Turning, because lining is stitched to tie 

is made Ic. less than turning on the Regular 

i'rench Tie or ■ , .04 

5, Pressing .05 

4, Pressing joints and joinings .02 

ip .24 

JO, 10 — i- achine j.iade, One Piece Tie, Open Large End, 
Siat'll End Closed, Hemmed Both Ends: (Regular 
One-piece Shape):' 

■■ • ' . Per Doz, 

. ' 1, Hemming $ .OSy 

2, _"xinning up. ,. . ■. • . .07f 



9857 



-101- 

Per Doz. 

3. Pressing $ .08 

4. Ihirning .08 

$ .30i 

ITote that ties No. 11 and Ko« 12 are missing from the above series. 
The No, 11 tie is not generally applicable to the Industry in that it 
was a sTDecial construction priced for a certain manufacturer. The Eo, 
12 tie has oeen reallocated as No. 7 Boys' Machine Made, Open Margined, 
Lined Large End, French Small End Closed Short Pieced Tie. 



9857 # 



OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 

THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, established the Division of Review of the 
National Recovery Administration. The pertinent part of the Executive Order reads thus; 

The Division of Review shall assemble, analyze, and report upon the statistical 
information and records of experience of the operations of the various trades and 
industries heretofore subject to codes of fair competition, shall study the ef- 
fects of such codes upon trade, industrial and labor conditions in general, and 
other related matters, shall make available for the protection and promotion of 
the public interest an adequate review of the effects of the Administration of 
Title I of the National Industrial Recovery Act, and the principles and policies 
put into effect thereunder, and shall otherwise aid the President in carrying out 
his functions under the said Title. I hereby appoint Leon C. Marshall, Director of 
the Division of Review. 

The study sections set up in the Division of Review covered these areas: industry 
studies, foreign trade studies, labor studies, trade practice studies, statistical studies, 
legal studies, administration studies, miscellaneous studies, and the writing of code his- 
tories. The materials which were produced by these sections are indicated below. 

Except for the Code Histories, all items mentioned below are scheduled to be in mimeo- 
graphed form by April 1, 1936. 

THE CODE HISTORIES 

The Code Histories are documented accoun.ts of the formation and administration of the 
codes. They contain the definition of the industry and the principal products thereof; the 
classes of members in the industry; the history of code formation including an account of the 
sponsoring organizations, the conferences, negotiations and hearings which were held, and 
the activities in connection with obtaining approval of the code; the history of the ad- 
ministration of the code, covering the organization and operation of the code authority, 
the difficulties encountered in administration, the extent of compliance or non-compliance, 
and the general success or lack of success of the code; and an analysis of the operation of 
code provisions dealing with wages, hours, trade practices, and other provisions. These 
and other matters are canvassed not only in terms of the materials to be found in the files, 
but also in terms of the experiences of the deputies and others concerned with code formation 
and administration. 

The Code Histories, (including histories of certain NRA units or agencies) are not 
mimeographed. They are to be turned over to the Department of Commerce in tsrpewritten form. 
All told, approximately eight hundred and fifty (850) histories will be completed. This 
number includes all of the approved codes and some of the unapproved codes. (In Work Mate- 
rials No^ 18, Contents of Code His to ries , will be found the outline which governed the 
preparation of Code Histories.) 



(In the case of all approved codes and also in the case of some codes not carried to 
final approval, there are in NRA files further materials on industries. Particularly worthy 
of mention are the Volumes I, II and III which constitute the material officially submitted 
to the President in support of the recommendation for approval of each code. These volumes 
9768—1. 



-ii - 

set forth the origination of the codes, the sponsoring group, the evidence advanced to sup- 
port the proposal, the report of the Division of Research and Planning on the industry, the 
recommendations of the various Advisory Boards, certain types of official correspondtnce, 
the transcript of the formal hearing, and other pertinent matter. There is also much offi- 
cial information relating to amendments, interpretations, exemptions, and other rulings. The 
materials mentioned in this paragraph were of course not a part of the work of the Division 
of Review. ) 

THE WORK MATERIALS SERIES 

In the work of the Division of Review a considerable number of studies and compilations 
of v..ata (other than those noted below in the Evidence Studies Series and the Statistical 
Material Series) have been made. These are listed below, grouped according to the char- 
acter of the material. (In Work Materials No. 17, Tentative Ou tlines and Sum maries of 
Studies in Process , the materials are fully described) . 

I ndustry Studies 

Automobile Industry, An Economic Survey of 

Bituminous Coal Industry under Free Competition and Code Regulation, Ecnomic Survey of 

Electrical Manufacturing Industry, The 

Fertilizer Industry, The 

Fishery Industry and the Fishery Codes 

Fishermen and Fishing Craft, Earnings of 

Foreign Trade under the National Industrial Recovery Act 

Part A - Competitive Position of the United States in International Trade 1927-29 through 

1934. 
Part B - Section 3 (e) of NIRA and its administration. 
Part C - Imports and Importing under NRA Codes. 
Part D - Exports and Exporting under NRA Codes. 
Forest Products Industries, Foreign Trade Study of the 
Iron and Steel Industry, The 
Knitting Industries, The 
Leather and Shoe Industries, The 

Lumber and Timber Products Industry, Economic Problems of the 
Men's Clothing Industry, The 
Millinery Industry, The 
Motion Picture Industry, The 
Migration of Industry, The: The Shift of Twenty-Five Needle Trades From New York State, 

1926 to 1934 
National Labor Income by Months, 1929-35 
Paper Industry, The 

Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans- 
portation, January 1923, to date 
Retail Trades Study, The 
Rubber Industry Study, The 

Textile Industry in the United Kingdom, France, Germany, Italy, and Japan 
Textile Yarns and Fabrics 
Tobacco Industry, The 
Wholesale Trades Study, The 

Women's Neckwear and Scarf Industry, Financial and Labor Data on 
9768—2 



- iii - 

Women's Apparel Industry, Some Aspects of the 

T rade P ractic e Studies 

Comniodltles, Information Concerning: A Study oT NRA and Related Experiences In Control 

Distribution, Manufacturers' Control of: Trade Practice Provisions In Selected NRA Codes 

Distributive Relations in the Asbestos Industry 

Design Piracy: The Problem and Its Treatment Under NRA Codes 

Electrical Mfg. Industry: Price Filing Study 

Fertilizer Industry: Price Filing Study 

Geographical Price Relations Under Codes of Fair Competition, Control of 

Minimum Price Regulation Under Codes of Fair Competition 

Multiple Basing Point System in the Lime Industry: Operation of the 

Price Control in the Coffee Industry 

Price Filing Under NRA Codes 

Production Control In the Ice Industry 

Production Control, Case Studies in 

Resale Price Maintenance Legislation in the United States 

Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry. 

Trade Practice Rules of The Federal Trade Commission (1914-1936): A classification for 

comparision with Trade Practice Provisions of NRA Codes. 

Labo r Studies 

Cap and Cloth Hat Industry, Commission Report on Wage Differentials in 

Earnings in Selected Manufacturing Industries, by States, 1933-35 

Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-35 

Fur Manufacturing, Commission Report on Wages and Hours in 

Hours a nd Wages in American Industry 

Labor Program Under the National Industrial Recovery Act, The 

Part A. Introduction 

Part B. Control of Hours and Reemployment 

Part C. Control of Wages 

Part D. Control of Other Conditions of Employment 

Part E. Section 7(a) of the Recovery Act 
Materials in the Field of Industri?il Relations 
PRA Census of Employment, June, October, 1933 
Puerto Rico Needlework, Homeworkers Survey 

Administrative Studies 

Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con- 
ditional Orders of Approval 

Administrative Interpretations of NRA Codes 

Administrative Law and Procedure under the NIRA 

Agreements Under Sections 4(a) and 7(b) of the NIRA 

Approved Codes in Industry Groups, Classification of 

Basic Code, the — (Administrative Order X-61) 

Code Authorities and Their part in the Administration of the NIRA 
Part A. Introduction 
Part B. Nature, Composition and Organization of Code Authorities 

9768—3 . 



- iv - 

Part C. Activities of the Code Authorities 

Part D. Code Authority Finances 

Part E. Summary and Evaluation 
Code Compliance Activities of the NRA 
Code Making Program of the NRA in the Territories, The 
Code Provisions and Related Subjects, Policy Statements Concerning 
Content of NIRA Administrative Legislation 

Part A. Executive and Administrative Orders 

Part B. Labor Provisions in the Codes 

Part C. Trade Practice Provisions in the Codes 

Part D. Administrative Provisions in the Codes 

Part E. Agreements under Sections 4(a) and 7(b) 

Part F. A Type Case: The Cotton Textile Code 
Labels Under NRA, A Study of 

Model Code and Model Provisions for Codes, Development of 

National Recovery Administration, The: A Review of its Organization and Activities 
NRA Insignia 

President's Reemployment Agreement, The 

President's Roemployment Agreement, Substitutions in Connection with the 
Prison Labor Problem under NRA and the Prison Compact, The 
Problems of Administration in the Overlapping of Code Definitions of Industries and Trades, 

Multiple Code Coverage. Classifying Individual Members of Industries and Trades 
Relationship of NRA to Government Contracts and Contracts Involving the Use of Government 

Funds 
Relationship of NRA with States and Municipalities 
Sheltered Workshops Under NRA 
Uncodified Industries; A Study of Factors Limiting the Code Making Program 

Legal Studies 

Anti-Trust Laws and Unfair Competition 

Collsctive Bargaining Agreements, the Right of Individual Employees to Enforce 

Commerce Clause, Federal Regulation of the Employer-Employee Relationship Under the 

Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial 
Regulatory Legislation 

Enforcement, Extra-Judicial Methods of 

Federal Regulation through the Joint Employment of the Power of Taxation and the Spending 
Power 

Government Contract Provisions as a Means of Establishing Proper Economic Standards, Legal 
Memorandum on Possibility of 

Industrial Relations in Australia, Regulation of 

Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com- 
merce Clause, Cases on 

Legislative Possibilities of the State Constitutions 

Post Office and Post Road Power — Can it be Used as a Means of Federal Industrial Regula- 
tion? 

State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis 

Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in 

Trade Practices and the Anti-Trust Laws 

Treaty Making Power of the United States 

War Power, Can it be Used as a Means of Federal Regulation of Child Labor? 

9768—4. 



- V - 

THE EVIDENCE STUDIES SERIES 

The Evidence Studies were originally undertaken to gather material for pending court 
cases. After the Schechter decision the project was continued in order to assemble data for 
use in connection with the studies of the Division of Review. The data are particularly 
concerned with the nature, size and operations of the industry; and with the relation of the 
industry to interstate commerce. The industries covered by the Evidence Studies account for 
more than one-half of the total number of workers under codes. The list of those studies 
follows: 



Automobile Manufacturing Industry 
Automotive Parts and Equipment Industry 
Baking Industry 

Boot and Shoe Manufacturing Industry 
Bottled Soft Drink Industry 
Builders' Supplies Industry 
Canning Industry 
Chemical Manufacturing Industry 
Cigar Manufacturing Industry 
Coat and Suit Industry 
Construction Industry 
Cotton Garment Industry 
Dress Manufacturing Industry 
Electrical Contracting Industry 
Electrical Manufacturing Industry 
Fabricated Metal Products Mfg. and Metal Fin- 
ishing and Metal Coating Industry 
Fishery Industry 
Furniture Manufacturing Industry 
General Contractors Industry 
Graphic Arts Industry 
Gray Iron Foundry Industry 
Hosiery Industry 

Infant's and Children's Wear Industry 
Iron and Steel Industry 



Leather Industry 

Lumber and Timber Products Industry 
Mason Contractors Industry 
Men's Clothing Industry 
Motion Picture Industry 
Motor Vehicle Retailing Trade 
Needlework Industry of Puerto Rico 
Painting and Paperhanging Industry 
Photo Engraving Industry 
Plumbing Contracting Industry 
Retail Lumber Industry 
Retail Trade Industry 

Retail Tire and Battery Trade Industry 
Rubber Manufacturing Industry 
Rubber Tire Manufacturing Industry 
Shipbuilding Industry 
Silk Textile Industry 
Structural Clay Products Industry 
Throv/ing Industry 
Trucking Industry 
Waste Materials Industry 
Wholesale and Retail Food Industry 
Wholesale Fresh Fruit and Vegetable Indus- 
try 
Wool Textile Industry 



THE STATISTICAL MATERIALS SERIES 



This series is supplementary to the Evidence Studies Series. The reports include data 
on establishments, firms, employment, payrolls, wages, hours, production capacities, ship- 
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports. 
They also include notes on the principal qualifications that should be observed in using the 
data, the technical methods employed, and the applicability of the material to the study of 
t he industries concerned. The following numbers appear in the series: 
9768—5. 



Asphalt Shingle and Roofing Industry Fertilizer Industry 

Business Furniture Funeral Supply Industry 

Candy Manufacturing Industry Glass Container Industry 

Carpet and Rug Industry Ice Manufacturings Industry 

Cement Industry Knitted Outerwear Industry 

Cleaning and Dyeing Trade Paint, Varnish, ana Lacquer, Mfg. Industry 

Coffee Industry Plumbing Fixtures Industry 

Copper and Brass Mill Products Industry Rayon and Synthetic Yarn Producing Industry 

Cotton Textile Industry Salt Producing Industry 

Electrical Manufacturing Industry 

THE COVERAGE 

The original, and approved, plan of the Division of Review contemplated resources suf- 
ficient (a) to prepare some 1200 histories of codes and NRA units or agencies, (b) to con- 
solidate and index the NRA files containing some 40,000,000 pieces, (c) to engage in ex- 
tensive field work, (d) to secure much aid from established statistical agencies of govern- 
ment, (e) to assemble a considerable number of experts in various fields, (f) to conduct 
approximately 25% more studies than are listed above, and (g) to prepare a comprehensive 
summary report. 

Because of reductions made in personnel and in use of outside experts, limitation of 
access to field work and research agencies, and lack of jurisdiction over files, the pro- 
jected plan was necessarily curtailed. The most serious curtailments were the omission of 
the comprehensive summary report; the dropping of certain studies and the reduction in the 
coverage of other studies; and the abandonment of the consolidation and indexing of the 
files, Fortunately, there is reason to hope that the files may yet be carec for under other 
auspices. 

Notwithstanding these limitations, if the files are ultimately consolidated and in- 
dexed the exploration of the NRA materials will have been sufficient to make them accessible 
and highly useful. They constitute the largest and richest single body of information 
concerning the problems and operations of industry ever assembled in any nation. 

L. C. Marshall, 
Director, Division of Review. 
9768 — 6 .