Discuss the wholesale blanks industry: Factory direct, custom labels. You can also use this forum to locate a wide variety of wholesale products including t-shirts, hoodies, mousepads, coffee mugs and other imprintable products.
I like Continental Clothing. It is a very high quality shirt. Their label tears out, leaving the size label, and they have a label on the side (I believe). My sales person is a bit odd, sort of slow to get an order through. I am west coast so I have to call it in. For samples you pay a $4 one time charge. I also think you have to have a reseller ID to buy from them. Good Luck!
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Have you checked into getting a license in your state? It's not usually that difficult or expensive to do so, and most of the good wholesalers require it to open an account. You can find some places that don't, but they're usually buying from the ones who do - the same ones you could be buying from - then reselling to you and calling it "wholesale".
Anyhow, Tultex is another one who makes some nice ring-spun girl's shirts with tear-away tags.
We are actually in the process of getting a license, but we are still trying to find someone to help us with some LEGAL info and business related stuff too. Neither one of us have EVER ran or tried to run a business, so we are free-rolling here. 8)