Fer sale by the Superintendent ofDocuments, WVashington, D. C.' - Price 5 cents
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Registry No. 1399--1--18
Code No. 61--Amendment No. 1
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON OCTOBER 2, 1934
GOVERNMENT PRINTING OFFICE
INDUSTRIAL SUPPLIES AND
MACHINERY DISTRIBUTORS TRADE
This publication is for sale by the Superintendent of Doc~umenits, Government
Printing Offce, Wanshington, D.C., and by district offices of the Burean of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE~
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257i Federal Building.
Boston, Mlass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamlber of Commerce Building.
Chicago, Ill.: Suite 17i06, 201 North WVells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 801 First National Bank Building.
H~ouston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mecmphis, Tenn.: 229 Federal Building.
Mlinneapolis, M\inn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New Yor~k, N.Y.: 7341 Custombouse.
Norfolk, Va.: 400 East Plume Street
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh. Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
Rit. Louis. M~o.: 506i Olive Street.
Ban Francisco, Calif.: 310 Custombouse.
Seattle, W~ash.: 809 Federal Office Building.
Approved Code No. 61--Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
INDUSTRIAL SUPPLIES AND MACHINERYQ~.
As Approved on October 2, 19341
APPROVING AMENDMENT TO CODE OF FAIR COMPETITION FOR THEI
INDUSTRLAL SUPPLIES AND RI1ACHINERY DISTRamoTRons TRADE
An application having been duly mnadepuuntoadinul
compliance with the provisions of Tjit~le I of thean Ntionalndustiafll
Recovery Act, approved June 16, 1933, for app~rova~l of amendmetnts
to a Code of Fair Competition for the Industrial S~upplies and
Machinery Dist.ributors' Trade, and hearings having been duly held-
thereon, and the annexed report on said amecndments containing
findings with respect thereto, having been made and directed to the
NOWT, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to out~hor-
ity vested in it by Executive Orders of the President, including
Executive Order 6859, dated September 27,! 1934, and otherwise,
does hereby incorporate by reference, said annexed report and does
find thiat said amiendmnents and thle Code as constituted after beingi
amended comply in all respects with the pertinent provisions and
wrill promote the policy and purposes of said Title of said Act, and
does hereby order that said amendments be andi they are hereby
approved, and that the previous approval of said Code is her~eby
amended to include an approval of said Code in its entirety as
amended, such approval andi such amendments to take effect ten (10)
days from the date hereof, unless good cause to the contrary is
shown to the National Industrial Recovery Board before that time
and a subsequent order to that effect is issued.
NATIONAL INDUS.TTRIAL RECOVERY' BOARD
By G. A. LYNCn, Admnilnstria~tive' Officer.,
Approval recommended :
ROBERT L. HousTow,
TCASHINGTON, D. C1.,
October B, 1934.
REPORT TO THE PRESIDENT
The WThite House.
S~IR: TEnder t.11 COde of Fair Competition for t~he Industrial
Supplies and Mlachinery Distributors' Trade, as approved on October
23, 1933, the Code Authority for said Trade has submitted the
Amendments which are included and attached.
This is a report on the Hearing on the foregoing Amendments,
conducted at the Carlton Hotel mn Washington, D. C., on June
15, 1934, in accordance with the regulations of the National Recov-
These Amendments are considered as of vital importance to this
Trade which is making an earnest effort to curtail and prevent
certain industrial practices and abuses which have become apparent
during the past few years and which if allowed to continue will tend
to prevent a rapid return of industrial recovery in this Trade.
The Deputy Administrator in his final report to us on said A~mendm-
mentss to said Code having found as herein set forth and on the
basis of all the proceedings in this matter;
W~e 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
adequate governmental sanction and supervision, by eliminating
unfair competitive practices, by promoting the fullest possible utihi-
zation of the present productive capacity of the industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agri-
cul~ltra1~nl prodct through increasingly pul~hrchasngr power, b reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) The Code as amended comphles in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (al) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(d) 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.
(e) Those engaged in other steps of the economic process hav-e
not been deprived of the right to b~e h~eard prior to app~lroval of
F~or these reasons, wie have approved these amnendmi~ents.
NATroluaL INDUS'ITRIAL RECOVERY BOARD,
B~y G. A.. LYNea, Admlllll~~iln~isttie OCirer.
OCTOBER 2, 1934.
AMIENDMSENT TO CODE OF FAIR COMPETITION FOR
THE INDUSTRIAL SUPPLIES AND MIACHINERY' DIS-
Amend Article V, by deleting the present Section 1 (b) and in-
Iserting a new Section 2, Section 3, Section 4 as follows:
SEc. 2. It. being found necessary in order to support thle adminis-
tration of this Codle and to maintain the standards of fair competi-
tion established hereunder and to effectuate the policy of the Act,
the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
If;"propr for the foregoing purposes, and to meet such obligations out
ofuds which may be raised as hereinafter provided and which
Shall be held in trust for the purp oses of the Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary (1)
an itemizedl buidgt. of its stimated epennses for the foregoing pur-
poses, and (2) an equitable basis upon which the funds necessary to
support such budget shall be contributed by members of the Trade;
(c) After such bud-get 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 Trade, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
SEc. 3. Each member of the Trade shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Author-
ity, determined ats hereinabove provided, and subject to rules and
regulations pertaining thereto issued by the Administrator. Only
!members of the Trad complying with the C~ode and contributing
Sto the expenses of its administration as hereinabove provided, unless
Iduly exempted from making such contributions, shall be endtited to
participate in the selection of members of thle Code Authority or to
Receive the benefits of any of its voluntary activities or to makze use
of any emblem or insignia of the National Recovery Administration.
SEc. 4. The Code AuthorityS shall neither incur nor pay any obli-
Igation substantially in excess of the. amount thereof as estimated in
i~ts approved budget, and shall in no event exceed the total amount
contained in the approved budget, except upon approval of the Ad-
ministra~tor; 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.
Amend Article V, Section 2, by deleting the figure "L 2 ") and sub-
stitute therefore the figure "L 5 ".
Amend Article VI by adding Sections 13 and 14 as follows:
SEC. 18. T~ilen a member of the Trade desires to dispose of obso-
le~te, closeout, or discontinued items, and to offer such merchandise
for sale at prices less than his customary prices, he shall file with
the Regional Committee in the area in which he is located, a state-
ment showing the quantity, sizes, and complete description of thle
merchandise so offered for sale, and the reasons foir suchl sale. On
such sales, all invoices for mnerchandise so sold shall p~lainly display
the following wor~ds, Special Closeout Prices ". Failulre to ob-
serve this rule or increasing such stock during liquidation at the
special prices is an unfair method of competition. Any distributor
finding himself in this position shall first offer the surplus of mer-
chandise to the mannufacturer thereof, an~d failing to dispose of such
merchandise by this method shall offer same to the members of the
Trade in the regional group.
SEc. 14-. The issuing of credit or making of cash settlement beyond
the recoverable value of any goods accepted by any member of the
Trade in exchange for or as part payment for any products of this
Approved Code No. 61-Admendment No. 1.
Registry No. 1399-1-16.
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UNIVERSITY OF FLORIDA
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