Registry No. 328---02
For sale by the Superintendent of Documents, W'ashington, D. C. - Price 5 cents
App~roved Code No. ll6-A~mendment No. 2
NATIIONAL RECOVERY ADMINISTRATION
CODI[E OF FAIR CO4)MPET ITION
MOP STICK INDUSTRY
AS APPROVED ON OCTOBER 30, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
This publication is for sale by thle Superintendent of Documents, Government
Printingr Office, Wasnhington, D).C., and by district offices of th~e Bureau of Foreign
andc Domestic Commerce.
DISTRICT OFFICES OF THE& DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmuipgham, Ala.: 257 Federal Building.
:Boston, Manss.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commnerce Building.
Charleston, S.C.: Ch:7mber of Commnerce B~uibling.
Chicago, Ill.: Suite 1700,G 201 Nolrth WCells Street.
Cleveland, Ohio.: Chlamber of Comnmeree.
Dallas, T'ex.: Chamber of Comimerce 'Iuildling.
Detroit, M~ich.: 801 First Natiolnal Bank Buildling.
H-ouston, Tex.: Cle:mbfe of Commerce ]Buildinlg.
Indlianapolis, Ind.: Chamber of Cocmmrce Building.
Jacksonville, 1Fla.: Chamb~~-er of Commlerce Duilding.
Kansas City, Mo1.: 102'8 Baltimlore Avenue.
Los Angeles. Calif.:' 1163 South Broadwa~y.
L~ouisville, K~y.: 408 Federa~l Buildling.
Rleluphiis, Tenn.: 229 Fedleral B~uildling.
Minneapolis, Minn.: 218 Federal Buildling.
New Orleans, La.: Rcoom 225-A, Custombiouse.
Newv York, N.Y.: 7i34 Customhouse.
Norfolk, Va.: 400 East Plume Street.
Philadlelphia, Pa.: 422 Commerc~ial .Trust Building.
Pittsburghi, Pa.: Chamber of Commnerce Buildlinga.
Portland, Oreg.: 215 New Post Offce B~uildlinr.
St. Louis, MSo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 116--Almendment No. 2
AMENDMENT TO CODE O1F FAIR COMPETITION
MOr~P STI~ICKII INDU~STR~Y
As Approved on October 30), 1934
ArenRovINo AM~ENDMLENT OF CODE OF FAI COMPETITION FOR THE
Mblor ScKr IINDUrSTRYs
An application having bee-n duly made pursuant to and in full
comlpliance with the provisions of Title I of thre Na~tional Industrial
Recovery) Act, approved June 16, 1933, for approval of amendments
to a Code of Fair Compectition for the Mop Stick Indulstry, and
hearings having been dulg held thereonl and the anlnexedl report on
said ammenlenlts, con~taimlng findings with respect, thereto, having
been made and directed to the Presiden:
NfOW7, THERIEFiORE, on behalf of the Presttident of the United
States, th~e Nat~ional Indlustrial Recovery Board, pursunntt to au~thor-
ity resteed in it b Executive Orders of the Prelident, including
Executive Order No. 6859,, and otherwise, does hereby incorporate
by reference said annexedl report and does find that said code com-
plies in all respects with the pertinent provisions and will promote
the policies and purposes of said Title of said Act; and does hereby
or~der that said amendments be and they are hereby approved; and
that the previous approval of said Code is hereby amended to include
an approval of said Code in its entirety as amended; provided, how-
ever, that the provisions of Article VII, Section 1, S~ubsection a (i) ;
and Article VII, Section 1, Subsection (e) insofar as it prescribes a
waitingr period between the filing of price lists and the effective date
thereof, be and they are hereby stayed pending the said Board's
further Order; and further provided that price lists shall be filed
with a confidential and disinterested agency of the Code Authority;
such approval and such amendments to take effect fifteen (15) days
from, thne date hereof, unless good cause to the contrary is shown
to the said Board before that. time and the Board issues a subsequent
Order to that effect.
NATIONAL INDUSTRIAL RiECOVERY- BOARD,
By G. A. LYNnI Adminis~jjj/trtiv e O~f)Yer.
W. P. EILLIS,
A ctfing1 Division, AdmJin ristrat or.
WASHINGTON, D. C.,
October 30, 1934.
REPORT T'O THE PRESIDENT
The 10hitef~ House.
SmR: I have the honor to submlit herewith amendments to the Code
of Fair Com~petitio~n for the nblop Stic~k Industry.
AI public hear~ingS on these amnendmlents wmas held. inr Washington,
D. C. on Ma~rch 10, 1934 in accordance withl thie provisions of the
National Indu~strial Recovery Af~ct.
Nine, pr1oposedl amndmn~l~ents were submitted by the Code Author-
ity but during the course of the hearing and subsequent t~hereto,
onle additional amendment relating to those already proposed was
presented for consideration, and onie amendment as originally p~ro-
nnposed w scrhan ged to conforml to r~evised~ policy.m ae lmlaie
Thne proposed amiendmients in their finalfom res mrze
The first amlendlent, defines the term "' Employer to correct an
omission of this term in the code as or~iginally submitted.
Tlhe secondr amlendmnent c~larifies and amnplifies the provision rela-
tive to the posting of labor provisions of the Code.
The third amnendmlent places upon the employer the responsibility
of providing for the safety and health of employees and the estab-
lishment of standards therefore.
The fourlthl amlendmnent r~emovecs the r~ighlt of the NaRtional Indus-
trial Recovery Board to amend any action of the Code Authority
inl Ar~ticle: VI, Section 2.
Thle fifth a mendmlent provides that rcommelcn d t~ions of thte Code
Authority uponI approva\'l by the said B~oardr shall be made an integral
part of the Code.
The sixth amendment clar~ifies the provisionIs r~elative to the shar-
ing of expenelss of administration.
Thie seventh amendmetlnt specifies t~he r~ighlt of the saidl Board to
suspend any action of the Code ~Authority pendling inv\estirat~ion.
The eighthtl amendmrent revises the provisions r~elative to price
cult-ti;ng uniform rcs accountingnc emerIgenes es and price filing.,
The ninth amnendmentt c~lari~es and amplifies thne present provisions
relative to price discliriminat~ion.
The ~tenth amendment clarifies and Simpllifies the! prlo'ision rela-
tive to defamation of co~mpetitors.
The Deputy Adtministrator in his final report to us on saidr nmlendt-
ments to said Code hnaving found as he9rein set fourth andc on the basis
of all the p>1roceedlings in this matter:
We find that:
(a) The nlmendmnents to said Code and~ the Code as amiendled are
well dfesignedl to pr~omlote the policies anld purposes of TIitle I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce whichfn tend
to diminish thre amount thereof, and will provide for the general wel-
fare by promoting the organization of industry for the purpose of
cooperantivet action mallcng trade groups, by inducing and maintaining
united action of labor andi management under ndleqlualte governmental
sanction and supervision, by eliminating unfair compe~ctitive practices,
by promoting the fullest possible utilization of the present productive
capacity of industries, by avoiding undue restriction of production
(except as may be tem~porafrily requiredd, by increasing thle c~onlsump-
tion of industrial and agricultural products through inc-treasingb pur-
chasing power, by reducing and relieving unemployment, by improv-
Ing standards of labor, and by otherwise rehabilitating indlust ry.
(b) The Code as amnded~cc complies in all respel~-cts with the perti-
nent provisions of said Title of soid Act, including without limitation
Subsec~tlon (a) of S~c~tion 3, Subsection (a) of Section 7, and Sub.
section (b) of Slection 1~0 thereof.
(c) The amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(d) The amendmenlzrts and the Code as amended are not designed to
and will not elimlilnate or oppress small enrterpr>~i-es and will not
operate to disicrimnir nut against them.
(e) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, these amendments have been approved.
For the N1ational Industrial Recoveryr Board:
C. Ac. LoaNC,
OCTOBER 30, 1934.
AM1IIENPIDMENT TO CODE OF FAIR COMPETITION FOR
T"H[E M~OP STICK INDUSTRY
Article II[ is amendedtc by thze addition of the following inserted
between thne second' and third paragraph:
T'he terml L"emp~loyer as used herein includes anyone by w~hom
any such emlplo~yee is complensated or emnployed~.
AnaLcIRT V.-S ect~ionl is amend~ed to r~ead as follows:
Each employer shall post and maintain in conspicuous places
accessible to employees full copies of the labor provisions of this
Code. lEvery member of the Industry shall comply wit all rules
alnd regulations, relative to thre postingr of provrisiolns of codfes of
fair competition which may from time to time be presrcr~ibed by the
National Indtustriall Recover~y Bonrd.
ARTICLE V.-Sectio 8 is added to readl as follows:
Every employer shall provide for the safety and health of em-
ployees during thre hours anld at the places of their emlployment.
Standards of safety and health shall be submitted by ethe Coe
Authority to said Board within three months aft~erth feiv
date of this amendment.
ARTICLE VI.--Section1 2, Parag~raph 1, is a~mended by deleltingr in
its entirety the phrase subject to ~the right of the Admninist~rator
on. rev7iewP to disapprove or modify any action taken by thle Code
Authority "", and further Ac~rticle VI Section 2 is amended by strik-
ing out the words or modify ': where they occur as being
AnaILor VI.--Section 2 (b) is amended to add the following:
Upon approval by the National I~ndustrial Recovery Board, after
such notice and h~ea ring~r as it may prescribe, such recomm Ien la tlonls
shall become an integral part of this Code.
AnRICia VI.--Section 2 (e) is amended by striking out the words
"L to be taken, into consider~ation "
ARTICLE VI.-Section 4 is added to read as follows:
If the National Industrial Recovery Board shall determine that
azny notionl of a Code Authority or any agency thleretof may be unfair
or unjust or cont~rary to the public interest, the said Board may
require that such action1 be susp~lcende to ajfford an opportunity for
in~vestigattion of the merits of such action and further consideration
by such Code Authority or agency pending final nation which shall
not be effective unless the Board approves or unless it shall fail to
disapp~rove after 30 days notice to it of intention to proceed with
such action in its original or modified form.
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Approved Code N~o. 1'16 Registry No. 328--02
AMWENVDMENT NO. 2--ERRATA SHEET
CODE OF FAIR COMPETITION
MOP STICK INDUSTRY
As Approved on October 30, 1934
Page 5 first line "A~l~rticle VIII "~ should be "Article VII."
W. S. GOVlERMET PINTINS OFFICE: 1934
ARTICLE VIII.-Section 1 is amended to read as follows :,
Destructive Price Cutting. -(a) The Princi~ple.--(i) Destructive
price cutting is an unfair method of competition and is forbidden
at all times, irrespective of the existence of an emergency.
(ii) When no dleclar~ed emerggency exists as to any given product,
there is to be no fixed mlinimuml basis for prices but it is intended~ that
sound cost estimating methods should be used.
(iii) Wlhen an emergency exists as to any given product, sale
below the lowest reason~lable cost of such product, in violation of sub-
section (c) hereof, is forbidden.
(b) UnT~iformi C'ost A~CroanlS1ting.-T-he Code Authority shall cause
to be formlulated an accounting system~ and methods of cost finding~
and.'or estimantingr capable of use by all members of the Industry
and shall submit, such Esystem and methods to the National Industrial
Recovery Boardt for review and approval. After such sys~~tem and
methods hav\e been formulated and approved by the said Board,
full details concerning them shall be made available to all members.
Thereafter it is intended that all members should utilize the prin-
ciples of such, system or methods.
(c) Emergency (Lowoest Reasronable Cost).-W~(hen an emergency
exists, the Code Authlority may cause an impartial agency to in-
vFestigate costs and to determiine the lowest reasonable cost of the
product affected by th~e emergency. Such determination shall ex-
clude all unallowable cost elements set forth in, and shall be in all
respectsy subject to such, rules and regulations as mayT be issued by the
said Board and subject to its approval or modification after such
notice and opportumlty to be heard as it may prescribe. Due notice
of suchI determination shailll be given to all members of the Industry.
The Clod~e Authority or the said Board may, from, time to time~t, cause
such determination to be review~ed orr reconsidered and appropriate
net~ion ta ken.
(d) Dcfaitrionsl~c.-A~n Emergency exists whenever the National
Industr~ial R2e~overy Bo0ardl determ~iness that destructive price scuttling
is rendlering ineffective or seriously endangering the maintenance
of thle provisions of this Code.
(i) W\hen no tiemergencyS exists, the term shall have thne mleaning
dleclar~ed in rules and regulations promulgated bly the said Board
on recommendation of the Code Authority or on its own motion;
(ii) Wh~len an emergency exists, the term shall mrtean any sale in
viol t ion of subsection (c) hereof ;
(iii) It shall be an absolute~ defense to any charge of dlentructive
price cutting, if an impartial agency., designated or appr~oved by
thle Board, shall find:
(aa) Th~at the price complained of is justified by existing com-
pet it.ion, evidlenc~e of which has been reported to the Code Authlority;
(bb) That the price complained of is justified as a method of
disposal of dropped lines or seconds, or
(ce) W ~hen no dlecla red emergency exists, that th~e member cha rged-
w~ith destructive. price cutting has in good faith endeavored to mzak~e
proper use of the announced cost estimating methods.
(e) Each member of the Industryt shall publish and file with the
Code Authnority a price list for all products of the Industry sold or
offered for sale byT him, together with discounts and transportation
UNIVERSITY OF FLORIDA
IBY III IIIYIIIl6
3 1262 08584 1996
allowa~nces, if any, allowed therefrom, and fixed terms of payment,
w~hichi price lists shall fully andl accurately describe each product.
Revisedl price lists, revised discounts, or terms and conditions of sale.
mayS be filedl andi publishedl frocm time t~o time thereafter byv any
mecmber of the Indlustry; provided, however, that such revision be
publish~led and filedl with the Code Authority ten days in advance of
the effective date thereof. Copies of all price lists and revised price
lists andc discounts, withi notice of the e~ffctive dlate specifiedl, shall
be sent immnediaitely by registered ma~il to all known members of the
InduitryJ, who, thereupon, many file, if they so desire, revisions of
their price lists andc 'or discouints, whichi may become effective upon
date w-hen the revised lists or discounts first filed, shall go into effect.
(f) No member of thle Inldustry shanll sell or offer for sale any
product of the Industry at prices other than the prices noted in his
price list or term or conditions of sale other than the terms or con-
ditions of sale previously published andl filedl by suchl member with
the~ (7Cod Authority in aIIC)ICo~rdance ith t~he fo~regoing provisions and
in effect at the time of such sale.
ARTICLE VII.-Sectio~n 9 (a) is amended to read as follows:
Directly or indirectly to discriminate in prices to purchasers of
the samne class, provided that. nothing herein shall prevent differences
in, prices to allow for differences in quality, quantity, aind transporta-
~ALRTICIan~ VII.--Section 2 (d) is amended to readl as follows:
The defamantion of competitors by falsely imnput.ingS to them dis-
hionoraDble conduct, inability to perform contracts, questionable credit
standing or other false representations.
Approved Code No. 116----mendment No. 2.
Registry No. 328-02.