NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
UNIV. OF; FL L 4
GO1 ERITnMENT PRINTINGC OFFICE
For'eale by thre Superintendent oT D~ocun ents, Washington D).C. - PriceS 5 ents
Approved Cjode No. 209--Amendment No. 1
Regisity No. 1640---06
AS APPROVED ON JANUARY 31, 1935
This publication is for sale by the Supe~lrintenllrntl of Documents, Government
Printing Offce, WV.I.- bi n sonll D. C~., and by district ultficec~s of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE:
Atlanta, Ga.: 504 Post Office Building.
Birmnlluh.int. Ala.: 257 Federal Building.
Boston, Meas.: 1801 Custombouse.
Buffalo, N'. Y.: Chambher of Commerce Building.
Challfeston. S. C.: Chalmber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Cha~mber of Commerce.
Dallals, Tex.: Chamber of Commerce Building.
De~trait, MSich.: 801 First Na.tionrlal Bank: Building.
Houston, Tex.: Chamber of Commerce Building.
Indli:masllolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Ch~amber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 7:: Customhouse.
N\orfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San F'rancisco, Calif.: 310 Custombouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 2091--Amendment No. 1
A1MENDI)MENT TO CODE O1F FAIR COMJPE''TITIN
MUSICAL; MERCHANDISE MANPUIFACTURICNG
As Approved on January 31, 1935
APrrormsT AMI\ENTDMENT OF CODEF OF FAIR COMP~IETI7TION FOR THE
AffIrscaL RTEr~cHA.\NDIE RIANUFACTURING INDUSTRY.
An application having been duly~ mad~e pursu;~nnt to and in full
comlpliance~e with the provisions of Title I of the National Industrial
]Recovery Act, approved June 16, 1933, for approval of an Amnendc-
ment to a Code of Fair Competition for the ~usic~al Mef~r~chandlise
Manu-lIlfner-tulringr Indu~stry, andr hearings hav i n g been duly held thcltereon
and the annexed report on said Amendment, containing findings with
r~espect there~cto, havinelr been made, and dlilrc~ted to the Presidenlt:
NOW, THEREFORE, on behalf of th~e President of the UnitedZ
States, the National Industrial Recovery Board, pursuant to author-
iyvseinibyExecutive Ord Etui\ 1ders of the President, jl'inludin
Excuiv Ode o. 68r59, and otherwise, does hereby inl~llcorporte,
by recferenc;, said annexesd report and does find that said Amlendl-
mlenlt and the Code as constituted after being amnic de~id comp!ll.ly in.
all res~ipects withn the pertinent provisions and wFill promote the policy
and purllposel s of said Title of said Act, and does hereby order that
said Amemencnent b~e and it is hereby approved, and that the previous
approval of said Co.le as amrendled is hereby~l> modified to include an
approval of said. Code in its e~ntircty as amended, provided, however,
that the phrase within six months after the effective date of the
Code "' be deleted. and the' phreae on or before Ma~ly 1, 1013.T"" be
c.nb ?titultedl in Sjection 4 of hr~ticle V, line 5, suchT approval and .-wh1
Amendmenlll.~t to take effect twenty (20) days from the a~ntr h~~~ereof,
unless gonelt cause to ther cntlrar11y is shown to the National Industrial
Recovery Boardl before that time and the National Industrial Recov-I-
ery Boardi issues a subsequent or~der to that effect.
N~NAAIOLbT 1~n~.I:Iourns E~C.u CI Recn a .\lIn.
By WV. A. H~~arnnous, Aldmirictnistraur Oftfi?,r.
A. IlNGTO ,! D. i~i l C..,,;,;inm
7~\i\1!SJIin one 31,~ 10J
1125470 1.178- T- 8 1
REPORT TO THIE PRESIDENT
The TWhite Houcse.
Smr: An application has been duly made, pursuant to and in full
conlp'li:11wec with the prea-~\isions of the National Indu.tr~ial Recovery
Act, for an Amendmnent to thet Code of F~iair Competition for th-e
MSusical MercI~handise Manulfrlwturlling Industry, submitted by the
said3 Indufstry thPnlrouh its Codle Aiuthority.
On September 24i, 1934~, a public hearing was held in W1:-hing-
ton, D). C.~ Every pecrson1 who Irequested an appearance was propelyl3
hecardl in accordance with statutory and regrulatory requirements.
The A~lmendment \ims1 revised during the recess and submrlitted~ in its
present form for approval.
TPhe AnRI obwlll!'it, incorporates certain standard elanws~r, includlingr
thle rmanliatory use-~.--anentlt provisions, tngother~' 1 wlith certain ne~~'cssar
fair tradle provisions.
TIhe Dep~uty Administra~tor in ]his final report on. said Amendment
to said Code havcingr found as herein set forth and on the basis of all
thle p~roceedingrs in this mantter::
It is found that :
(a) The Amendment to said Code and the Code as amended are
well d resigrned to promote the policies and purposes of Title I of
thne N~ational Indus~tr~ial Recovery~j Al~ct including thne removal of ob-
trus-(tions to the free flow of intrlta~ te and foreign commerce which
tend to diminish the amount thereof and will provide for the general
w-elfare by p~romoc.tingr the organization of industry for the purpose
of cooperative action among trade groups, by inducing and ma~in-
taining united action of labor and management under adequate gov-
er~n nwlnt al sanction and super-vision, by eliminating unfair competitiv-e
practices, by promollc-ting the fullest utilization. of the present produe-
tive capacity of the industries, by avoiding undue restriction of pro-
duction (except as may be temporarily required) by increasing the
consumption of industrial and agricultural products through in-
cresin puchaingpower, by reducing and relieving unemploy-
m~ent, by improvinga standards of labor, and by otherwise rehabili-
(b) The Code as amended complies in all respects with the per-
tinent provisions of said Tlitle of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection. (b) of Section 10 thereof.
(c) The Amendment and the Code as amended are not designed
to and w17ill not permit monopolies or monopolistic practices.
(d) Thne Amendment and the Code as amended are not designed
to and will not e~liminlate or oppress small enterprises and will not
operate to discriminate against them.
(e) Those? ensiges1c in other steps of the economllli' jl('proce have
not been dleprivedl of thre right to be hecardl prior to approval of said
For these ren';-nnlsl therefore, this ~Amembu-l~~nt has be~cen. approved.
For the National~l Iniustr~ial Rcovery~a B3oard:
W. A. HannortIr.xw,
JANAR 8, i$. dcministrativelc Otffer.Lr
AMENDMENT TO CODE OF FiAIR CO~PLE]TITION FOIR
THIE MIUSI[CAIL MERCHANDI SE MA;\NUFACT\UR ING
1. Delete period at th~e end of Section 2, Atrtile II and substitute
comima and add the follow~ing:
"' and/or the original sale thereof by a member of th-e Indus.~try.".
2. Substitute as Section 3 of Articlle II.
The termn "C member of the Inldust~ry as used herein inlcluldes but
without limitation, any indlivridual, partnership, association, corpora-
tion or other form of enterprise e1(ngaged in the Industry, either as
an employer or on his or its own beha7lf~.
3. Cha~ngec Sect~ions 3, 4, 5, and 6 to Sections 4, 5i, 6, and 7.
4. Substitute for Section 6, Article III, the following:
SrcenroPJ 6. N~o employer shall knowingly p~ermit any employece to
wo~rk for any time which, when add-edl to the timne spent at work for
another employecr or employerscl in this Indusltr'y, exceeds the mnaxi-
mlum permitted her~ein.
5. Substitute for Section 4, Ar~ticle IVT, the- following:
SE~CTION 4. A personn wrrhose earning capacity is limlitedl because of
age, phyiedi or mental handiicap, or other infirmity, may be em-
played on light work at a wa;ge below the~ minimlum esrtab~lishedi by
this Codle if thie emplloyer obtains fromt the SC~tat Au~thority desig-
nated by the United Statess Departmlent of Labor a certificate author-
izing such person'~s empllo~yment at CI1h1 wagres and for such hours as
shall be -tated in the car1t i fiente. Such authority shall be guided by
the instr-uctions of thle United States Department of Labor in issuing
certificates to such persons. Earchl employer shall file monthly with
the Code Authority a2 list of all such persons empIloyed by himr,
showing the wIagres paid to, and the maxsimlum hours of work for such
6. Substitute for Section 4 of Article V, the following:
San~lroru 4. Sfatadardcs for LSafet n cat.-ahepoe
shall p~rovidte for the safety ani halth of emloy1,-ea~hes durng th
h-ours and at the places of empqloyme~nt. Standards for safety and
health shall b~e sbit tedll!~'l by the Codie Aulthor~ity to the National
Indu~strial Rtecovetry B~oardl within six mlonth~s after the effective clate
of the Code.
7. Substitute for Section 7 of Ar~ticle V, thle following:
SECTION ?. PO~t'ing.-Ajll employers shall post and k-eep pastedl
copies of this Code in conspicuous placestl accessible to all employees.
Every member of the Indn--try~ shall comply with all rules and regu'l-
Jations relative to thle pos~ting of pr1ovisions of Codes of Fair Comnpe-
tition which may fromn timlle to time be prescribedl by thle National
Industrial Recovery Booard.
8. Add to Article VTa new Section. 8 to read as follows:
SECTION 8. No employees shall be dischalrrrl1, demoted or otherwise
dti.scr~~~inunated against by reason of maknling~ a complamnt or giving
evidence with r~espect to an alleged -viola~tion of this Code.
9. Renumber Section 7, ~Art~icle VTI to Section 9, Ar~ticle VI.~
10. Insert as new Section 7, Article VI: the foIT~llowin:
SIECTION 7. I~f the ~Ntional I~ndatr~i:l Recovery Board ;halll at
anly time decterminre that anly action of a Code Authorit~y or any
Agencyg thereof, may be unfair or unjust or contr~ary to the public
interest, the National I~ndustrial1 Reco~very B3oardl mlay requcirie that
such action be ~rsuspend-ed to afford an opportunityit for inves~tigation
of the merits of such action and further consideration by such Code!
Authority or AgencyrrS pending final action which shall not be effective
unless the National Industrial RecovryBordaprosorunes i
shall fail to disapprove after th~ir~ty (30) dj~aysl notice toitr- of intention
to proceed with such action in its original or modified(. form.
11. Insert as Section 8 to follow the newv Section 7 of Article VI
The Code Authority mayT incorporate under the laws of any State
of the Unitedl States or of the Di tl~rct, of Columblin, or may amumllle or
adopt such existing corlporlatet form under any of such laws as it may
deemn appropr"iate for the proper performance, as anld from the effec-
tive date, of its activities, powers and duties hereundi~ ler, such corp~o-
ration or corporate~ form to be not for profit and to be known as
the Musical Merchandise Manufacturing Industry Code Authority,
Inc.; provided that the powers, duties, objects and purposes of the
said corporation shall, to the satisfaction of the National Industrial
Recovery Board, be limited to the powers, duties, objects and puxr-
poses of the Musical Merchandise Mllanufacturing Industry Code
Authority as provided in this Code; provided further, that the exist-
ence of the said corporation shall be during the term of the Code; and
provided further, that the certificate of incorporation and by-laws
shall be subject to the disapproval of the National Industriln
12. Substitute for subsection (h) of the present Section 7 of Article
VI, the following:
(1) It being found necessary in. order to support the adlministra:-
tion of this Code and to maintain the standards of fair cormpeti-
tion establish hereunder and to effectuate the policy of the Act,
thne Code ~Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which m~ay be raised as hereinafter provided and which
shall be held in, trust for the purposes of the Code.
(b) To submit to the National In dustri all Recovery Board for its
approval, subject to such notice and opportunity to be heard as it
iay dleemn necessary (1) an. itemized budget of its estimated expenises
for the foregoing purposes, and (2) an equitable basis upon which
the funds necessary~ to support such budget shall be contributedl by
members of thec Industry.
(c) Arfter such budget andl basis of contribution hav\e been ap-
prove~d by the National Industrial Recovery Board, to determine
and obtain equitable contr~ibution as above set forth byT all members
UNIVERSITY OF FLORIDA
3 31262 08728 5796
of the Industry, and to that end, if nrcessary, to institute legal
pro~ceed~ings:- ther~efor inl its own namne.
(2) Ealch member of the Industry shllrl pay his or its equitable
contribution to the expenses: of the mraintenlance of thie Code Au-
thor~ity, determined as hereinabove provided, and subject to rubles
and regulations pertniningr thereto issued. by the National Indus-
trial Recover~y B~oard. Only memblers of the Indlustry complying
with the Code and contributingr to the exlpenses of its dmn isn~;tration
as h~er~einabove proviidedT (unless duly exremptedl from making suchl
contribution) shall be entitled to participate in the ccelc~rtionl of
members of the Code iAuthority or to receive the benefits of any of
its voluntary activities or to mal~ke use of anly emblem or insigmia
of the National~l Recovery Adm~inistrationr.
(3) The Code Author~ity shall neither incur nor pay anly obliga-
tion substantially in excess of the amount thereof as estimated in
its app'r~ovedl budget, and shall in no event exceedr~ the total amlountt
contained in the approvedt budget, except upon approval of the NIIa-
tional Industrial Recovery Boar~d; and no obseqt~c uent budget shall
contain any deficiency itemt for elxpInll i tures in exce~s of prior budgetl~
e.-timal~tes except those which the Nartional I~ndutr~~iial Recovery Boatrd
shall have? so approved.
13. Strike out present Subsection (i) of the former Section 7 of
Article VI~ and re~-le~ttc r Sub~section (j) to (i) and add therleto the
Surch amendment, if approved by the National Inldustria~l Rerovery
Board, shall buecomle effective as a ~par~t of this Code and be binding
ulpon every member ofl the Industry.
1.4. To Article VII, add the following section:
SECTION 12. Tenn8) of ASale?.--(a) Tlhe mlaximlum credit terms~ ap-
plying to all sales by at member of the Indulstry to domestic job~bing
or wholesale distributors or to manduf~ ctu rers'i shall be
(1) All invoices shall be due and payable net, not later than thir~ty
(30) days fromt the end of the month of sale, and no more fav\ornblel
allow-ance thanI 2 : for cash shall be allowed for prom~lpt payment,
provided thant such payment 1hall be presented or maliledl on or before
the tenth (10th) of the m-onlth following sale.
(b) The following uzniforml ttwinsl shall apply to allowances and
the acceptance of returns of merchandise from domestic jo-bb~ing or
wholesale distributors or mla lu fncet urertls:
(1) No mnerchandlise shall be ncec.ep.tedl ffor credit, ecepclt in the case
of factory defects or errors, delays~ in. shipments, or non-conformllance
with orders. No claims for fnctclry3 def~c~tive merchandise shall be
ad jusLted~ by the allowance of any discount or rebate.
(2) No mter~chandiise which has been dlamagred in transit shall be
a~cceptedl for credit, nor shall credit deductions be permitted because
of SuIch1(~1 ~ anu.:c'.
Approved Code Nol. "anli--.\rinsendment;r No. 1.