NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WIPING CLOTH INDUSTRY
AS APPROVED ON SEPTEMBER 9, 1934
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Approved Code No. 298-Amendment No. 1
Registry No. 299-1-21
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
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Approved Code No. 298-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
WIPING CLOTH INDUSTRY
As Approved on September 9, 1934
APPROVING AMENDMENTS TO CODE OF FAIR COMPETITION FOR THE
WIPING CLOTH INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of amendments
to a Code of Fair Competition for the Wiping Cloth Industry, and
hearings having been duly held thereon and the annexed report on
said amendments, containing findings with respect thereto, having
been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
resident, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amendments and the Code
as constituted after being amended comply in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act, and do hereby order that said amendments
be and they are hereby approved, and that the previous approval
of said Code is hereby modified to include an approval of said Code
in its entirety as amended, such approval and such amendment to
take effect ten (10) days from the date hereof, unless good cause
to the contrary is shown to the Administrator before that time and
the Administrator issues a subsequent order to that effect.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
ROBERT L. HOUSTON,
September 9, 1934.
84897 --1181-30-34 1
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on certain amendments to the Code of Fair
Competition for the Wiping Cloth Industry, and on the hearing
conducted thereon in Washington, D. C., July 10, 1934.
The first amendment establishes more definitely the procedure for
the support of the administration of this Code.
The second amendment increases the powers and duties of the Code
Authority relative to the preparation of standard, domestic and
imported classifications and specifications for products of the
The third amendment eliminates destructive price cutting, de-
termines when a fixed minimum basis for prices shall exist, and
includes the standard emergency provisions.
The fourth amendment charges the Code Authority to have formu-
lated cost finding and accounting methods, and further limits such
methods to the extent of eliminating an arbitrary uniformity of
costs and prices in the Industry.
The Deputy Administrator in his final report to me on said
amendments to said Code having found as herein set forth and on
the basis of all proceedings in this matter;
I find that:
(a) The amendments to said Code and the Code as amended
are well designed to promote the policies and purposes of Title I
of the National Industrial Recovery Act including the removal
of obstructions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for
the general welfare by promoting the organization of industry for
the purpose of cooperative action of labor and management under ad-
equate governmental sanctions and supervision, by eliminating unfair
competitive practices, by promoting the fullest possible utilization of
the present productive capacity of industries, by avoiding undue re-
striction of production (except as may be temporarily required),
by increasing the consumption of industrial and agricultural prod-
ucts through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
rehabilitating indust ry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
sub-section (a) of Section 3, sub-section (a) of Section 7 and sub-
section (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendments on behalf of the industry as a whole.
(d) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons these amendments have been approved.
HUGH S. JOHNSON,
SEPTEMBER 9, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE WIPING CLOTH INDUSTRY
Modify Article VI by deleting Section 5 and substituting in lieu
thereof the following:
5. (a) It being found necessary in order to support the admin-
istration of this Code and to maintain the standards of fair com-
petition established hereunder and to effectuate the policy of the
Act, the Code Authority is authorized:
(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code;
(2) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds neces-
sary to support such budget shall be contributed by members of the
(3) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable
contribution as above set forth by all members of the Industry, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
(b) Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Au-
thority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the Industry complying with the Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided (unless duly exempted from making such contribution) shall
be entitled to participate in the selection of members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
(c) The Code Authority shall neither incur nor pay any obli-
gation substantially in excess of the amount thereof as estimated in
its approved budget, and shall in no event exceed the total amount
contained in the approved budget, except upon the approval of the
Administrator, and no subsequent budget shall contain any deficiency
item for expenditures in excess of prior budget estimates, except those
which the Administrator shall have so approved.
Modify Article VI, Section 2, by adding sub-section (i) as follows:
(i) To prepare standard, domestic and imported classifications and
specifications for the products of the Industry, which on approval
of the Administrator, shall be binding on all members of the Indus-
try in the purchase and sale of the products of the Industry.
Modify Article VI by adding Section 8 as follows:
8. (a) The standards of fair competition for the Industry with ref-
erence to pricing practices are declared to be as follows:
(1) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the Industry or of
any other industry or the customers of either may at any time com-
plain to the Code Authority that any sale price constitutes unfair
competition as destructive price cutting, imperiling small enterprise
or tending toward monopoly or the impairment of code wages and
working conditions. The Code Authority shall within five (5) days
afford an opportunity to the member selling at such price to answer
such complaint and shall within fourteen (14) days make a ruling or
adjustment thereon. If such ruling is not concurred in by either
party to the complaint, all papers shall be referred to the National
Recovery Administration which will render a decision thereon.
(2) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended
that sound cost estimating methods should be used and that consid-
eration should be given to costs in the determination of pricing
(3) When an emergency exists as to any given product, sale below
the stated minimum price of such product, in violation of Section
(b) hereof, is forbidden.
(b) Emergency Provisions.-(1) If the Administrator, after
investigation shall at any time find both (1) that an emergency has
arisen within the Industry adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fied product within the Industry for a limited period is necessary
to mitigrate the conditions constituting such emergency and to effect-
uate the purposes of the Act., the Code Authority may cause an
impartial agency to investigate costs and to recommend to the Ad-
ministrator a determination of the stated minimum price of the
product affected by the emergency and thereupon the Administrator
may proceed to determine such stated minimum price.
(2) When the Administrator shall have determined such stated
minimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the National Industrial
Recovery Act, he shall publish such price. Thereafter, during such
stated period, no member of the Industry shall sell such specified
products at a net realized price below said stated minimum price and
any such sale shall be deemed destructive price cutting. From time
to time, the Code Authority may recommend review or reconsidera-
tion or the Administrator may cause any determinations hereunder
to be reviewed or reconsidered and appropriate action taken.
Modify Article VI, by adding Section 9, as follows:
9. Cost Finding.-The Code Authority shal cause to be formu-
lated methods of cost finding and accounting capable of use by all
members of the Industry, and shall submit such methods to the
Administrator for review. If approved by the Administrator, full
UNIVERSITY OF FLORIDA
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information concerning such methods shall be made available to all
members of the Industry. Thereafter, each member of the Industry
shall utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit the Code Authority,
any agent thereof, or any member of the Industry to suggest uniform
additions, percentages or differentials or other uniform items of cost
which are designed to bring about arbitrary uniformity of costs or
Approved Code No. 298-Amendment No. 1.
Registry No. 299-1-21.