Approved Code No. 46--Amendment No. 2
Registry No. 1403--32
NATIONAL RECOVERY ADMINISTRATION
C ODE OF FAIR C OM PE TUITION
MOTOR VEHICLE RETAILING
AS APPROVED ON JULY 14, 1934
This publication is for sale by the Superintendent of Documents, Government
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Foreign and Domestic Commerce.
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Approed Code ~No. 40--Amendment No. 2
AM~rENDMENT TO CODE OF FAIR COMPETITION
MOTCOR 'VEHEICLJE ~RETACILNGG TRAE
Asn Approved on July 14, 1934
.APPROVING AODIFCATION OF CODE OF FAIR COMPETITION FOR THE
AfOTOR VEHIOLEf RETAILING TRADE:
An application having been duly made pursuant to and in full
compliance wCith the provisions of TPitle I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of a modi-
fication to the Code of Fatir Com~ptition for the M~otor Vehicle Re-
tailing Tradle, and due consideration having been given thereon and
the annexed report on said modificaltion, containinga findings w~ith
respect thereto, having been made and directed to thl~e President:
NOW, THI-EREFiOREtl', on behalf of the President of the United.
States, I, Hugh S. Johnson, Administra~tor for Industrial Recovery,
pursuant to authority vested in me by Executive Order No. 6543--A,
dated December 30, 1933, and otherwise, do hereby incorporate, by
reference, said annexed report and do find that said modification and
thle Code as constituted after being modifiedl comply in all respects
with the pertinent provisions anld will promote the policy and pur-
poses of said Title of said Act, and do hereby order that said mnodi-
fication be and it is hereby approved, and that the previous approval
of said Code is hereby modified to include an approval of saidl Code~
in its entirety as modified.
Huanil S. J-on s soN,
Admini'strator for Irndu~stria Recovlery.
Approval recommelnded :
SC. E. ADAM\BS,
July 14, 1934.
737098 "- 829--71-----34
Th~e Wthite Houcse.
Smr: An application has been duly made pursuant to and in full
compliance with the provisions of the National Recovery Act, for a
modification of the Codle of Fair Coompetittion for the Motor Vehicle
Retailing Trad~e, submitted by the National Control Committee on
behalf of the Emergency National Committee.
The purpose and effect of the modification are to have the Code
conformi to the provisions of Administrative Order No. X-36, ap-
proved on M~ay 26, 1934, to authorize the Code Authorit~y to submit
a budget andi method of assessment upon which funds shall be con-
tribut~ed by members of the Trade.
The Deputy Administrator in his final report to me on said modifi-
cation of said Code having found as herein set forth and on the basis
of all the proceedings in this matter:
I find that:
(a) Thle modification of said Code and the Code as modified are
well designed t~o promote the policies and purposes of Title I of t~he
National Industrial Recovery Act including the removal of obstruc-
tions t~o the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare by promoting the organization of industry~ for the purpose of
cooperative action among trade groups, by inducmng and mamntammig
united action of labor andl management under adequate governmental
sanction and supervision, by elimninatmng unfair competitive prac-
tices, by promnoing the fullest possible utilization of the present pro-
ductive capacit-yl of~ the industries, by avoiding undue restrictions of
production (except as may be temporarily required) by increasing
the consumption of industrial and agricultural products through
mecreasing purchasing power, by reducing and relieving un-
employmlent, by improving standards of labor, and by otherwise
(b) The Code as modified cpmplies in all respects with the perti-
nen~t provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection (b) of Section 10 thereof.
(c) The Code empowers t~he Code Authorityv to present the afore-
said modification on behalf of the industry as a whole.
(d) Th~e modification and the Code as modified are not designed
t~o and will not permit monopolies or monopolistic' practices.
REPORT TO THE PRESIDENT
(e) The modification and the Code as modified are nlot designed
to and will not eliminate or oppress small enterprises and will nlot
operate to discriminate against them~
(f) Those engaged in other steps of the economic process havFe
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I: have approved this modification.
H~oon S. Joansoh-,
JULY 14, 1934.
MODIFICATION TO CODE OF FAIR COMPETITION F'OR
THE MOTOR VEHICLE RETAILING TRADE
To include and add to Article VI, Title B, the following, to be
known as Sect~ions 4, 5 and 6:
SECTION 4. It beiner found necessary in order to support the ad-
ministration of this Gdode and to maintain the standards of fair com-
petition established by this Code and to effectuate the policy of the
Act, the Code Authority is authorized, subject to the approval of the
a. To incur such reasonable obligations as are necessary and
proper for the! foregooingr purposes and to meet such obligations out
of funds which. may be raised as here~inafter provided and which
shall be held in trust for the purposes of the Code.
b. To submit to the Administrator for his approval, subject to
such notice and opportunities to be heard as he may deem necessary,
(1) anl itemized budget of Its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
c. After such budget and basis of contribution have been approved
by the Administrator, to determine and secure equitable contribu-
tion as above set forth by all such members of the Trade, and to that
end, if necessary to institute legal proceedlings therefore in its own
SECTION 5. Only members of the Trade complying with the code
and contributing to the~ expenses of its administration as provided
above shall be entitled to participate in the selection of the members
of the Code Authority or to receive the benefits of its voluntary ac-
tivities or to mrake use of any emblem or insignia of the Nataonal
Recovery Administration. Each member of the trade shall pay his
or its equitable contribution to the expenses of the maintenance of
the Code Authority, determined as hereinabove p~rovided, and
subject to rules and regulations pertaining thereto issued by the
ScECTION 6. The Code Authorityv shall neither incur nor pay any
obligation in excess of the amount thereof as estimated in its ap-
proved budget, except upon approval of the. Administrator; and no
subsequent b~udge~t shall contain any deficiency item for expenditures
in excess of prior budget estimates except those which the Adminis-
trator shall have so approved.
Approved Code No. 46-Am~endment No. 2.
Registry No. 14103-32.
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