NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND PHOTO FINISHING
AS APPROVED ON MARCH 4, 1935
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Approved Code No. 362-Amendment No. 2
Registry No. 1650-17
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Approved Code No. 362-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
PHOTOGRAPHIC AND PHOTO FINISHING
As Approved on March 4, 1935
APPROVING AMENDMENT OF CODE OF FAIR COM PETITION FOR THE
PHOTOGRAPHIC AND PHOTO FINISHING INDI'STHY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for the Photographic
and Photo Finishing Industry, and hearings having been duly held
thereon and the annexed report on said Amendment, containing
findings with respect thereto, having been made and directed to the
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. (Cs' ', and otherwise, does hereby incorporate,
by reference, said annexed report and does find that said Amend-
ment and the Code as constituted after being amended comply in
all respects with the pertinent provisions and will promote the
policy and purposes of snid Title of said Act, and does hereby order
that said Amendiment be and it is hereby approved, and that the
previous approval of said Code as nimended is hereby modified to
include an approval of said Code in its entirety as amended, 'ui'nc
approval and such Amendment to take effect twenty (20) days from
the date hereof, unless good cause to the contrary is shown to the
National Industrial Recovery Board before that time and the Na-
tional Industrial Recovery Board issues a subsequent order to that
NATIONAL INDh''.TRIA.L RECOVERY BOARD,
By W. A. HARRIMAN, AdmTi;ni -s'at'v Offi ir.
JOHN W. UPP,
Acting Division A dminwi trator.
WASHINGTON, D. C.,
March 4, 1935.
REPORT TO THE PRESIDENT
The White Houise.
SIR: The Code Autliority for the Plh,,togr;i phic and Photo Finish-
ing Industry on Noveimiber 20, 1934 submittedd an appliatin for an
amendment to the Code of Fair Competition for the said Industry.
The purpose of the proposed amendment was to correct, in .so far as
possible, exi-ting inequities.
A public hearing was held in VWashingtn i on January 3, 11:3.) pur-
suant to the provisions of the National Industrial Recovery Act.
Every per ,in who requested an appearance was heard in accordance
with statutory and regul tory requirement .
The proposed amendments include a change in the administra-
tive organization, the nmodifictitn of certain provisions to a form
more e(uitable and capable of adm ni.-tratiin, and the conformation
of certain other provisions to existing policy.
The Deputy Administrator in his final report on said iinendlnent
to said Code having found as herein .st forth and on the basis of all
the proceedings in this matter:
It is found that:
(a) The amejlindlllment, to said Code and the Codel as allmended are
well designed to promote the policies and purposes of Title I of the
National Industrial Rvc,,very Act including the removal of (ob)truc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by prol'moting the organization of industry for the purpose of
cooperative action of labor and illanag'lemenlt under adequate govern-
Imental sanction and supervision, by eliminating unfair competitive
prac'tice.-, by promoting the fullest possible utilization of the present
proucivtive capacity of inlu.-trie.-, by avoiding undue retrictionl of
production, by increasing the .coiillnption of industrial and agricul-
tural products through increasing pi pichaing power, by reducing
and relieving u unemployment, by improving stand la rds of l bor, and
by otherwise rehabilitating industry.
(b) The Code as amended complies in all r-p-:ts with the perti-
nent proviioi of said title of said act, including without limiiitation
subsection (a) of 'ectii 3, s-ub-ection (a) of section 7 and slubsec-
tion (b) of section 10 thereof.,
(c) The Code empowers the Code Authority to present the afore-
said aiiiendiiiein t on behalf of the induiitry as a whole.
(d) The amendment and the Code as amiiendedl are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amenled are not designed to
and will not eliminate or oppress small enterprises and will not oper-
ate to di.scriminiate against them.
(f) Those engaged in other steps of the c'-niiili pI'-ess have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, this Amendment has been approved.
For the National Indiilstrial Recovery Board:
W A. HARRIMAN,
M.ACH 4. 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE PHOTOGRAPHIC AND PHOTO FINISHING
ITEM 1. Wherever used in the Code, delete the word "Adlminiis-
trator" or the phrase "Admiini.trator for Indu(trial Recovery "
andil .uibstituite therefore the phrase "National ndT.-l li:al Recovery
Board ", and wherever the \word he ", referring to Administrator
is .used, substitute the word it."
ITEM 2. Wherever iel in the Code, delete the words Code Au-
thority and substitute therefore the words Divi-,ii1l Code
ITEM 3. In the second line of Suibparagraph (c), Paragraph 1,
of Article II, delete the word or before the word "exposed and
substitute the word of."
ITEM 4. Delete the present provision of Parg:iraiph 2 of Article
IIIand substitute therefore the following:
"No other employee, except w'atchmlen who may work not more
th anl fifty-two (52) hours per week and outside salesmen, may be
permitted to work in exce.:, of forty (40) holurs per week."
ITEM 5. Delete the present pribvi-in of Paraigr.ph 3 of Article
III and substitute therefore the following:
"The provisions of Sections 1 and 2 of this Article shall not
apply to members of the Industry operating individ ially owned
and individually operated units, or to employers or employees en-
gaged in a managerial capacity earning more than thrity-five (35.00)
dollars per week."
ITiEM 6. Add to Article V the following Paragiraph to be listed
as Paragraph 10:
"No member of the Iidusti ry shall di-miss or demote any em-
ployee for making a complaint or giving evidence with respect to an
alleged violation of the provision of any Code."
ITEM 7. Delete Paragraphs 1 and 2 of Article VI and substitute
thlerefor the following four Paragraphs:
1. "A Basic Code Authority is .hereby constituted which shall
con.-si,: of the Chairman of each of the Divisional Code Authorities
to be elected pursuant to the provisions of this Article. "The Basic
Code Authority shall coordinate and adjust all matters involving
inter-divisional conflicts." "
2. "A Divisional Code Authority for each of the Divisions listed
in Paragraph 1 of Article II is hereby con-tituted. Each divisional
Code Authority shall conllist of at least three (3) and not more than
five (5) members of that Division, provided, however, the Portrait,
and Coumercial Division may administer the provisions of this Code
through one Divisional Code Authority. The election of all members
of each Divisional Code Authority shall be by a fair method, which
method shall be submitted to the National Indl-.:trial Recovery Board
for approval. The National Industriail Recovery Board may appoint
additional members without vote to represent such g',,vernmental
agencie s it desires.'
3. Each Divisional Code Authority shall in accordinlce with s-uh
regulations as may be prec.-'ribed by the National Industrial Recovery
Board have exclusive juri dtiction over lmattfers pertaining and/or
problems relating exclusively to that Division. incltdiring the collec-
tion and disposition of funds paid by members of that Division for
4. Each Divisional Code Authority may establish in any Trade
Area local Trade Area Code Commiittees to admini i-ter the provisions
of this Code in that particular Trade Area, provided, however, that
such Trade Area signifies its desire for such administration. The
cost of such administration shall be borne on a voluntary basis by
the members of that Trade Area. All action of Trade Area Code
Committee so constituted shall be subject to the approval of the Divi-
sional Code Authority."
ITEM 8. Delete the present titular numbers of Paragraphs 3 and 4
of Article VI and substitute therefore the titular numbers 5 and 6.
ITEM 9. Delete the present Paragraph 5 of Article VI of the Code
as amended on October 6, 1934. and substitute therefore the following
to be listed as Paragraph 7:
7. Nothing contained in this Code shall constitute the Members
of the Basic Code Authority or any Divisional Code Authority part-
ners for any purpose. Nor shall any Memlber of the Basic Code Au-
thority or any Divisional Code Authority be liable in any mIanner to
anyone for any act of any other Member, Officer, Agent or Employee
of the Basic Code Authority or any Divisional Code Authority. Nor
.shall any Member of the Basic Code Authority or any Divisional
Code Authority be liable to anyone for any action or orli.-iiol to
act under the Code, except for his own willful misfea-a l e or non-
ITEM 10. Delete the present titular number of Paragraph 6 of the
Code as amended on October 6, 1934 and substitute therefore the
titular number 8.
ITEM 11. Delete the pre-eent titular number of Paragraph 7 of the
Code as amended on October 6. 1934.and substitute therefore the fol-
lowing to be listed as Paragraph 9:
9. If the National Industrial Recovery Board shall determine
that any action of either the Basic Code Authority or any Divisional
Code Authority or any agency thereof may be unfair or unjust or
contrary to public interest-t the National Industrial Recovery Board
may require that such action be suspended to afford an opportunity
for an investigation of the merits of such action and further con-
sideration by the Basic Code Authority or the Divisional Code Au-
thority or any agency thereof pending final action which shall not be
effective unless the National Industrial Recovery Board approves
or unless it shall fail to disapprove after thirty (30) days notice to
it of intention to proceed with such action in its original or modified
ITEM 12. Add to the two existing Subparagraphs of Paragraph 3
of Article VIII the following Subparagraphs:
C. To fail to include as a condition of sale filed with the Trade
Are Code Committee, in such region, where price filing is required,
the length of time generally inquired before the finished Industry
Product is ready for the consumiIner."
D. "To grant or o(ler to grant trade di.,ro'unti contrary to the
provision as set forth in Schedule 'C' attacllhed hereto."
I'T r 13. Delete Article IX and substitute therefore the following:
1. Each member of the Industry in those Trade Area-l which
have elected Trade Area Code Committees pur-i:llut to the prmvisionns
of Parangai ph 4 of Article VI shall file with a confidential and di-i
intcer,.-ted agent of the Trade Area Code Coiiiiiittee or, if nlone, then
with iich an agent dEsignIAted by the National Industrial Recovery
Board, identified lists of all of his prices, diiscounlt-. rebates-, allow-
aInce- and all other terms or condition, of sale, hereinafter in this
Article referred to ;, price terms', which lists shall completely
and accurately conform to and represent the individual pricing prac-
tici- of said member. Such lists shall contain the price termb, for all
such standard products of the Industry as are sold or offered for
sale by said member and for such non-standard products of said
member as shall be designated by the Divisional Code Authority.
Said price terms shall in the first, instance be filed within 3. days
after the date of approval of this provision. Price terms and revised
price terms shall becomveeffe'tire immediately upon receipt thereof
by said agent. Immediately upon receipt thereof, said agent shall
by t!chgraph or other equally prompt means notify said member
of the time of such receipt. Such lists and revi-ions, together with
the (-ffective time thereof, shall upon receipt be available to both
the members of the Industry and their customers who have applied
therefore and have offered to defray the cost actually incurred by the
Diviional Code Authority or its agent in the preparation and dis-
tribution thereof. The Code Co,,mmittee shall maintain a permanent
file of all price termi- filed as herein provided and shall not destroy
any part of such record, except upon written conent of the National
Industrial Recovery Board. Upon request the Trade Area Code
Committee shall furnish to the National Industrial Recovery Board
or any duly designated agoint of the National Inldustrial Recov'ery
Board copies of any such lists or revisions of price term-."
2. When any member of the Industry has filed any revision such
member shall not file a higher price within forty-eight (48) hours."
3. No ,wiib .r of the Industry shall sell or offer to sell any
products of the Indli-try, for which price term-, have been filed pur-
suant to the provi-ions of this Article, ex(:cept in accordance with -such
4. "No member of the Industry shall enter into any agreement,
indi-;'-t;i;ding, combination or conspiracy to fix or maintain price
terms, no cause or attempt to cause any member of the Industry to
changeI his price terms by the use of intimidation, coercion, or any
S;tier influence( inconsistent with the mainticnm:ice of the free and
open market which it is the puirpolm of this Article to create."
5. The standards; of fair ronipetition for the Industry with refer-
,rene to pri..ini practie-, are declared to be as follows:
'(a) Wilfully destructive price cutting is an unfair method of com-
petition and is forbidden. Any member of the Industry or of any
other Industry or the customers of either may at any timlle complain
to the Divisional Code Autlor)ity that any filed price co,,nstitutes un-
fair competition as destructive price cutting, imperiling small enter-
pri.e or tending toward monopoly or the impairml'nit of code wages
and working conditions. The Divisional Code Authority shall within
five (5) days afford an opportunity to the member filing the prie to
answer such compliint and shall within f,,iirteen (14) days make a
ruling or adjustment thereon. If such ruling is not concuirred in by
(itler party to the complaint, all papers shall be referred to the Re-
search and Planning Division of the National Recovery Adnmini -.tra-
tion which shall render a report and recommendation tlhelreon to the
National Industrial Recovery Board.
'(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum bisis for price. It is intended that
0ound cost estimti ing methods should be used and that considera-
tition should be given to costs in the determination of pricing policies.
'(c) When an .iifirgency exists as to any given product, ale below
the stated minimum price of such product, in violation of Paragraph
6 hereof, is forlbilden.' "
6. "(a) If the National Industrial Recovery Board, after investi-
gation shall at any time find both (1) that an emergency has arisen
within the Industry adver-ely affecting small enterprise or wages
or labor conditions, or ten(ling toward monopoly or other acute
conditions which t,.ed to defeat the purposes of the Act; and (2)
that the determlin;ation of the -tated minimum price for a specified
product within the Industry for a limited period is necessary to
mitigate the conditions constituting such :,iinTrg,-ticy and to effectuate
the purposes of the Act, the Divisional Code Authority may calu-.
an impartial agency to investigate costs and recommend to the
National Inlii-tirial Recovery Board a determination of the stated
minimum price of the product affected by the energltec>y and there-
upon the National Imill-ti'i:jl Recovery Board may prou'ed to
determiine such stated minimum price.
"(b) Whtn the National Inli.-triil Recovery Board shall have
determined such stated minimum pri-o for a specified product for a
stated period, which price shall be reasonably calculated to mitigate
the conditions of -ii li entr2niy and to eff c.t!c'.t, the purposes of
the National Industrial Recovery Act, it shall publish such price.
Thereiafter, 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 destruc-
tive price cutting. From time to time, the Divisional Code Author-
ity may recommend review or reconsideration or the National Indus-
trial Reco\vry Board iim;\ cause any determinations hereunder to
be reviewed or reconsidered and appropriate action taken."
ITLM 14. Delete Article X.
ITEM 15. Delete the present Article XI and substitute therefore the
following to be listed as Article X.
1. This Code and all the pro'vi.siohns thereof are expressly iii1'le
subject to the right of the President, in at tc-rdance with the provi-
sions of subsection (b) of Section 10 of the Nationil Industrial Re-
covery Act, from time to time, to cancel or modify any order,
approval, license, rule, or regulation issued until Title I of said Act,
and specifically, but without limitation.,. to be the right of the Presi-
dent to cancel or IImdlify his approval of this Code or any condition.,
imposed by him upon approval thereof."
2. This Code, except as to prov\isinc required by the Act, may be
modified upon the basis of experience or changes in circumstances,
such modifications to be based upon application to the National
Industrial Recove\ry Board by either the Basic Code Authority or
any Divisional Code Authority and such notice and hearing as it shall
specify, and to become effective upon approval by the President."
ITEM 16. Clin ge the titular numbers of Articles XIII, and XII,
to XI and XII.
ITEM 17. Delete the provisions of Schedule "C" and substitute
therefore the following:
"The total of all di.scounts including cash discounts shall not
exceed thirty-five per cent (35'. ). All cash discounts are conditioned
upon the payment of the account by the fifteenth of the following
month, however, the Divisional Code Authority may authorize ex-
ception to this trade discount provided, that eighty-five per cent
(85.) of the meImbers of the Industry in a Trade Area show that
due to conditions peculiar to that area or for other sufficient cause.
exception should be permitted. The National Industrial Recoveiry
Board may approve, di.-approve, or modify the determination."
Approved Code No. 362-Amendment No. 2.
Registry No. 1650-17.
UNIVERSITY OF FLORIDA
3 1262 08728 5929