NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION,
FISHING TACKLE INDUSTRYJ
For sale by the Sulperintendent of Documents, Washin~ton, D.C. - Price 5 cents
Registry No. 1657--1--03
Approved Code No. 13-Admendment No. 2
AS APPROVED ON MARCH 21, 1934
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Approved Code No. 13. Amendment No. 2
AMENiDMENT TO CODE OF FAIR COMPETITION
FISHING TACKLE INDUSTRY
As Approved on 1March 21, 1934
AMENDMENTS TO CODE OF FAIR COMPETITION FOR THIE E1ISHING
1 ACKLE INDU~STRYI
An application having been duly miade pursuant to and in full com-
pliance with the provisions of Title I of thle National Industr~ial Re-
covery Act, approved June 16, 1933, for approval of amendments to
a Code of Fair Compet~ition for t.hle Fishing Tackle Industry, and
hearings having been duly held ther~eon and t~he annexedT report on
said amendments, containingX ~findigs withf recspec~t thereto, having
been made and directed to the Pr~esident,
NOW, THEREFORE, on behanlf of the President of the United
States, I, Hugh S. Johnson, Ad~ministrat~or for Industrial Recovery,
pursuant to the authority rested in mie by Exeout~ive Orders of the
President, including Executiv~e Older No. 6513-A1, dated Dec~ember
30, 1933, and otherwise; dlo her~eby incorporate, by reference, said
annexed report and do findl tha~t said amiendmients and the Code as
constituted after being amended comply in all respects with the
"pertinent pr~ovisions andi will promote the policy and purposes of said
Title of saidl Act, and do hereby order that said amnendmlent~s be and
they are hereby appl~rovd, and that the previous approval of said
Code is hlereby modifiedl tor include an approval of said Code in its
entirety as amended.
HUGH S. JOHNSON,
4dminirrstrator for Industrial~ Recovery.
GEO. L. BERRY',
Mlrarch 81, 1984.
REPORT TO THE PRESIDENT
The W~hite) House.
SIR: ThilS is the report of the Administrator to the President on the
application for, and public hearing on, certain amendments to the
Code of Fair Competition for the Fishing Ta~ckle Manufacturing
Industry as proposed by the Fishingr Tackle Industry Code Committee
(t~he Code Authority). The hearing was conducted in Wanshington on
February 14, 1934. Every person who requested an appearance was
fully heard in accordance with statutory and regulatory requirements.
The amendments to Article III, Section 1, are intended to relax the
present. provision of the Code with regard to sales below cost and to
implement the niew provision in the light of actual experience of the
past six mnonthis. It is apparent that the labor provisions have tended
to effectuate the purposes of the Act by reducingg unemployment and
improving standards of labor in that employment. has gained by
over 15%0 and payrolls by about 30%0, but meanwhile the competitive
conditions in thie industry have not improved as a result, at least in
part, of t~he failure of some manufacturers to give proper consideration
to increased costs.
The amendments to Article III, Sections 2 and2 3, and a new Section
7, are intended "'to eliminate unfair competitive practices ", princi-
pally by c~larifymng the ongmial provisions.
The proposed new Section 7 to Article IV is a provision now stand-
ard but unknow-n at the time this Code was approved last August 19.
It is notable that all of the amendments have been submitted to and
endorsed by the Industryv as well as by the Code Committee. I be-
lievre that all of the proposals are fair aind will tend to improve condi-
tions in the Indust~ry and to effectuate the, policies of the Act.
The Deputy Administrator in his final report to mne on said amnend--
ment~s to said Code having found as herein set forth and on the basis
of all the proceedings in tdhis matter:
I find that:
(a) TIhe 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 obstruc-
tions to t~he free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting t~he organization of industry for the purpose of
cooperative action among tradle groups, byV inducmng and mlantauning
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive practices,
by promoting t~he fullest possible utilization of the present productive
capacity of industries, by avoiding undue restricrtion of production
(except as may be temporarily requiredd, by increasing the consumlp-
tion of industrial and agricu~lt~ural products through increasing pur-
chasing power, by reducing and relieving unemployment, by im-
proving st.andards of labor, and by otherwise, rehabilita~ting indulstr~y.
(b) The Code as amended complies in all respects with the pertinent
provisions of said Tit~le of said Act, including without limitation Sub-
section (a) of Section 3, Subsection (a) of Section 7 and Substction (b)
of Section 10 thereof.
(c) The Code em powers the Code A uthori ty to present t the aforesaid
amendmentn on behalf of the industry as a whole.
(d) The amendments and the Code as amended are not designed to
and w-ill 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 deprivedi of t~he right to be heard prior to approval of said amend-
For tlhese reasons the amendments have been approved.
HUGHr S. JoIFNSON,
MARCH 21, 19341.
AMlENDMlENT TO CODE OF FAIR COMPETITION F~OR
THE FISHING TACKLE INDUSTRY
Amend Article III, Section 1, to read as follow-s:
Sales below cost of production, and distrilbution.--(a) In order to pre-
vent destructive price cutting in the Industry, the Fishing Tackle
Industry Code Committee provided for in Article IV hereinafter,
shall, subject to the approvall of the Admzinistrator, set up as soon as
practicable a standard method of cost accounting for the Industry.
Said Committee, shall, subject to t~he approval of thle Aldministra~tor,
define "'reasonable cost of production and dlistribution for t~he pur-
pose of this Code and determine upon a basis to be uniform among
t.he manufacturers of this IndustryL t~he character of the items to be
included within such ""reasonable cost of production and distributionn."
(b) Except as provided in Sections 2 and .3 of this ALrticle it sha~ll
be unfair competition for any manufacturers to sell or offer to sell
directly or indirectly through a subsidiary, intecrmediary,~ or by any
means whaztsoever, any product or part, thereof of the Indu~st~ry,
wh~eth~er such product is pr~oduced in whole or inl par~lt in the Unit~ed
States, at a price or upon terms which will result in a return to t~he
seller of an amount less than th~e seller's on r~easonable cost of
production and distribution under this Code, except t~hat it is hereby
specifically provided that a manufacturer mayS mleet an established
comnpetitive price of a domestic mnnanufct~urer on a p~rodluct compar-
able as to grade, size, quality anrd other specifications, and under like
conditions of sale. Any belowv cost price! qulobte to meet competi-
tion, together with all pertinent information in respect t~her~eto, must
be reported immediately to the Executive Ofmeer of thle Fishiing
T~acldle Industry Code Co-mmnittee. Any- manufaicturer w\ho justifies
a belowv cost price on thie b~sisj of competition tler~eby assulmes
responsibility for estahblishing thlee existence of said comlpettiton.
(c) A price below cost justified upon the basis of competition shall
be void forthw\ith upon thze canicellationi, wvithdrawa. l or revision
Iipwaird of such justify~ing competitive price.
(d) In ord-er to further effectuate the operation of thiis cost miet~hod,
any cost and/or prric information w~hich the Fishingr Tackle I~ndustry
Code Comlmit~tee may- deem necessary for the purpose required shatll
be furnished promptly to the Executive Officer of said Comlmittee.
It shall be unfair competition within the meaning of the National
Industrial RecoveryT Act for any manufacturer to withhold such
information, or to furnish false or misleading cost and/or price
(e) All individual reports or cost information disclosed' to' the
Execut~ive Officer of the Fishing Tackle Industry Code Corrthrittee
shall be kept. confidential and shall not be, made available to ot~r
manufacturers or to the Industry members of the Code Commilt'ee
except as many be. necessaryI when such data disclose a violation, in
which event such information shall, as much as possible, be confined
to a general summary.
(f) To facilitate the identification and classification of all products
of the IndustryJ when necessary to determine comparability of com-
petition, each manufacturer shall keep thle Executive Officer of the
Fishing Tackle Indulstry~ C'ode C~ommit~tee supplied withL the latest
copies of hlis catalog and price lists sand/or list anrd discount schedule
showing lowest net prices being currently quoted. Such catalog
and/or lists must contain or be supplemleitedl by adequate information
as to type, size, design, specifications, character, quality, grade and
other pertinent information necessary to comnpletelyr identify and
classify each product. Nothinga in this provision shall be construed
to place! any r~estrict~ion on prices beyond subsection (b) at this Section.
(g) Upon t~he request of mlanufazct.urers representing a mlajor~ity of
the production by dollar sales of any class of products of the Industry,
t.he Fishing Tackle Industryv Code Committee? mayJ temporarily
suspend the standard method of cost accounting as it affects said
class of products when in the judgment of the Code Committee th~e
application of the cost method to such products is not practicable, or
when the importation of competitive products in substantial quani-
tities or in increasing rat~io to domeut~ic. production renders ineffective
the method or seriously endangers the position of domestic mnu~i-
facturers of said class of products.
(h) The operation of the stalndiard methiod of cost accounting shall
be subject at all times to the review of and appeal to the Adminis-
t~rat~or, w\ho shall have the power to revoke any~ Code Committee
action or' decision in respect thereto. In the interim between appeal
to the Admlinistrattor and his decision. inm respect thereto, unless the
Admuinist~rat.or shall otherwise order, the decision of the Fishing
Tackle Industry Code Committee shall continue in, effect.
(i) Upon application to thes Fishing Tackle Industry Code Com-
mittee by manufacturers representing a majority of the production
by dollar sales of any division or sulb-division of the Industry, said
division or sub-division ma~y, subject to t.he approval of the Admin-
istrator elect to sell its products upon such plan of open prices and/or
terms and conditions publicly announced by each manufactu~rer as
may be approved by tbhe Administrator after such notice and hlear-
ing a~s he may require.
(j) It shall be unfair competition for a manufacturer newly en-
gaged in the manufacture of any product of the Industry, or a new
manufacturer, without aldeqluate cost history with respect thereto, to
charge prices based on an unnwarranted~ presumption of the low cost
estimates or large sales v~olumle.
Amend Article III, Section 2, to read as fo~llowsa:
1Sales to other~ m~anuIfacturers.-- In order to better distribulte employ-
ment and t.o prevent over-production capacity, nothing in this Code
shall prevent one manufacturer from. sellinga his product to another
bona fide fishing tbackle manufacturerr at; prices muitually agreed upon,
providing such sa~les are mader at prices not less than "'factory cost",
andr fu~t~her providring that the purchasing manufacturer complies
wltj t.he provisions of this Code wvhen reselling said maerchandise.
All intra-maonufac tu rer sales, or agreements covering such transactions,
at prices below the seller'!s rIeasonable! cost of production and distri-
bution shall be subject to the approval of the ]Fishing T'ackle Industry
Code Committee whose decisions in respect thereto shall be subject to
UNIVERSITY OF FLORIDA
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3 1262 08584 3232
appeal to the Administrator. Said Commlittee shall, subject to the
approval of t~he Administrator, define "factory cost" for the purpose
of this Section of the Code.
Amend Article III, Sect~ion 3, to read as follows:
Close out mrcrhandise.-I~t shall be an unfair trade practice to
manufacture overruns, excess stocks and/or sub-standard goods for
the purpose of disposal at reduced prices ats close out merchandise,
seconds, mill ends, and/or dropped lines. Sales of bona fide mill ends,
dropped lines, rejects and/or surplus stocks may be made by any
manufacturer in any year up to three per cent (3%/) of his dollar
volume of fishing tackle sales in the immediately preceding year, but
any such sale shall be reported to the Executive Offcer of the Fishing
Tackle Indust~ry Code Committee with the unit price of each separate
item, within ten (10) days of t~he end of the month in which such sale
was made. Sales of such merchandise in excess of three per cent (3%0)
shall be made only upon application to and consent of the Fishing
Tackle Indust~ry Code Committee, which must render its decision
within ten (10) days of the date of receipt of such application, and
whose failure to act within said ten (10) days shall be deemed an
approval. Any mlanulfacturver has t~he right of direct appeal to the
Administrator from a decision of the Fishing Tackle Industry Code
Committee in this regar~d.
Add a newr Section to Ariticle III, as follows:
SECTION 7--Pr'ic guarantlfee.-.'-It shall be unfair competition to
guarantee prices except against t~he seller's onm decline. Nothing
in this provision shall be construed to prevent, the acceptance of firm
orders at specified prices and definite quantities, for future delivery.
Add a new- Section to Article IV, as follows:
SECTION 7.-Nothing contained in this Code shall constitute the
members of the Fishing Tadlde Industry Code Committee partners
for any purpose. Nor shall any member of the Code Committee be
liable in any manner to anyone for any act of any other member,
officer, agent or employee of the Code Committee. Nor shall any
member of the Code Commlittee exercising reasonable diligence in
the conduct of his duties hereunder be liable: to anyone for any action
or omission to act under t~he Code, except for his own willful misfea-
sance or nonfeasance.
Approved Code No. 13. Amlendmenlt No. 2.
Registry No. 1657-1-03.