NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SAW AND STEEL PRODUCTS
UNIV. OF FL USe.
DOCUMENTSi- CC T
Approved Code No .274--Amendment No. I
Re listry No. 1108--1-02
AS APPROVED ON AUGUST 10, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 rental
This p~ub.liention is for sale by thle Superintendetnt of Documents, G~overnment
Printing Office, WCashington, D.C., and by district offces of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF CORIMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmiingham, Ala.: 257 Federal Buildling.
Boston, M~ass. : 1801 Custombouse.
Ruffalo, N.Y.: Chamlber of Commerce Building.
Charleston, S.C.: Chamnnber of Commerce B~uilding.
Chicago, Ill.: Suite 1706l, 201 North Weclls Street.
C~leveland, Ohio: Chamuber of Commerce.
Dallas, Tex.: Chamber of Commerce Dullding.
Detroit, Mich.: 801 First National Bank Buuilding.
Houston, Tex.: Chamber' of Conmmerce Building.
Indinuapolis, Ind.: Chamuber of Commerce Building.
Jacks.ionrville, Fla.: Chamber of Commue'c~e Buildling.
Kans~ns City;, Mo.: 1028 Balltimore Avecnue.
Los Ahngeles, Calif.: 1163 South~ BroadwayS.
Louisville, K~y.: 408 Fedleral B~uildling.
Memphis, Tenn.: 229 Fetderal Buildingr.
Minuenpolis, Mina.: 213 Federal Buildling.
New Orleanus, La.: Roojm 225-A, Custombo~use.
New York, N.Y.: 734 CIustombouse.
Norfolk, V'a.: 406B East Plume Street.
Philadlelphlin, Pa.: 42~'2 Commerelal Trus~t Buildling
Pittsburgh, Pa.: Chamb~er of Conuueree Duilding.
Portland, Oregr.: 215 New Post O~ice Build.ing.
St. Louis, M~o.: 500 Olive Street.
San Francisco, Carlif.: 310 Customlhouse.
Seattle, Wa~sh.: 800 Fedsral Office Building.
Approved Code N~o. 274---Amendment No. 1
AMENDMENT TCO CODE OF FAIR COMIPETI`TION~i
SAW AND STEEL EPRiODUCTS MANRUF~ACTUJRING
-As Approved on August 10, 1934
ArenPoviNC IMODIFICATIION OF CODE O]F FAIR COlIPE'TITION FOR THE SAWl
AND STEL PRODUCTS` MANUIFACTURING TND0~sTRY
An application having been duly made puru~ant to and in full
complliance with the provisions of Tit~le I, of the Nationlal Indus-
trIial Recovery Act, approved June 16, 1933, for approval of a mod-
ification to a Code of Fa~ir Competition for the Saw and Steel Prod-
ucts Malnnufac-tur~ing IndUstry, anrd opportunity to be heard th~ereon
having been duly noticed and the annexed report on said modiifical-
tion, containing findings with r~espe~t, thereto, having been m~ade and
dlirec~ted to the Presid-ent:
NOW,. THEREFOIRE, on behalf of the President of the United
Sta tes, I, H~ugh S. Johnson, Administrator for Industrial Recovery,
puirsuant to authorrrity vested~ in me b Exrecutive Orders of the
Pr~esidecnt, including Exscu~tive Or~der 654j 3--A, dated Decemrber 30,
1933, and otherwise., do hereby incorporate by refer~ence, said an-
nexed report and do find that said modification and the Code as
constituted a~fter being modified compltyh poin all repect~os wih h
pertinent, proiin nd will promote teplc n upsso
said TCitle of said Act, and do hereby order that said modlifie~ntion
be and it is hereby aipprovedcl and that the previous app~~rovl of said
Code is hereby modified to include an approval of said Code in its
entirety. as modified, suc'h approval and suc~h modification to take
effect ten (10) davs; froml the date hereof. unless good cause to the
conltrary is shlown to the Administrator before thiat time and the
Administrator issues a subsequent order to that effec~t.
HucaH S. Jonws~on,
Adm1Einisi~tl'raor for Indusltrial Reco lcrly.
Approval recomnmend'ed :
BARow, WY. MUIRRAY,
Divis-ion Admin isf'trato.
Au g us.lt 10, 1934.
7iB000011 -10--57-34 (1)
REPORT TO THE PRESIDENT
Th~e WIhite- HowL~te.
Smr: This is a r~epor~t on the MIodification of the Codle of Fair Com-
pectition for the Siaw andr Steel Products M~anufacturing Indlustry.
This M~odification w~as Pr'oposed and Notice of Opp~ortunit y to be
Heardl was give~n fr~om Juily 19 to Augustt 1, 193341.
Thiis Mod~ification is designed to correct t~he insidtequate price
filling provU\isionsr as containie d in Ar1t~icle VII, Sectionls 1, L) andc 3 of
said Codc~e by substitutingF theirefor prov,~isions as determined:-- and set' -
frc~lt h by t he Na tionial Recovery Adm in istra~t ion under Oi-lice M~emo-
Thle Dep~uty Adml~inistr~ator in hiis final report to me on said Mfodi-
fleationl to said C~ode having found a~s heriein set forth andc onl the
basicis o:f ail thle p~ro~ceedings in this matter:
I: findc that:
(;1) The ~oditiencztion to~ said Code and the C~ode as modified are
we~ll d~esigned~ to: p~'romlote the policies and purposes of Title I of
the Na~t~ional Ind~ustrial Rcovi\ery~ Actt includlingr the removal of ob-
srtructiorns to the free HowT of interstate and foreign commerce which
tendl to diriminishl the niicumut th~eretof, andi will provide for the gen-
eral welfare byr~ promoliting~ the o~rganization of industry for the
puros o'i'''f co>opera~nt i e notion of labor and management under ade-
qua~te govr,\er~nmentall sanction and sup~er-i~sion, by~ ehiminating unfair
c-ompetit ive prac"tic~es, by~ prom~oting the fullest possible utilization of
the presen~!t prod'uctive capacity of indlustriei, by avoiding undue
lestlrictionss of prodn~tionl (except as mayr be temnporarily requiredd,
by~ increasing thle consumpti on of ind~ustriail and agricultulrall products
throlugh inlcr'eaingS purcha~sing~ power, by reducing and relieving un-
emnploymirent, by! im~r~oinlg standalrdls of labor, and byr otherwise
Irehabilitatinr r industryv.
(b) Thie Cobde as noloified! comiplies in all respects w~itlh thle per-
tinet. p'rovisions of said' Title of said Act, includino- with~out lim-
itationl Sub~section (a) of Section 3, Subsection (a) of Section 7, and
SClubsectio-n (b~) of Section 10) thereof.
(c) Thle M~odifiention and' thle C'ode as modified are not designed
to andl rIll not. perpmit monopolies o~r monopolistic practices.
(d) The M~odifiention and the Code as modified are not designedl
to and will not. eliminatce or oppres-s small enterprises anid will not
operate to discr~iminalte against thec~m.
(e) Those engagedl in. other step of the cconomic process h~ave not
b~eenl deprivedl of the right to be hecard p~r~iol to approval of :;aidl
mnodifi nt ion.
F~or these reasn.?,~ thrlc.e Mod~ificationls have beenl approvedc' by mec,
subject howeverl to a t;n dny wa~iting period asi provided in the
Order of Approval.
Hancr S. JiolNSOn,
Ad cmjn. is tra~t or.
AUCes7T 10, 19)34.
MODIFICATIONr; TO CODE OF FAIR'~i~ COMPETITION FOR
THfE SAWV AND STEEL PRODUCTS MANUFAlCTURING
Pursuant. to Article IX of the Code of Fair Competition for t~he
Saw and Steel Products M~anufacturing Industry, duly approved
by the Admliinistrato~r on Februaryv 10, 19341, and further to effee-
tuate the policies of Title I of the Nat~ional Inlust~rial Recover~y
Act, the following M/odification is establishedc as a par~t of said
Code of Fair Competition and shall be bindling up~on every member
of the Saw and St~eel Products Mafnufactur~ing Industry1.
Delet~e Article VI, Sections 1, 2, 3 and sutbst.itute therefore as
"' SECTIO)N 1. Open P~ice.--(a) Each member of the industry
shall file with t~he Coordlinator of the Codec Authlority identified list
of alli of his prices, dliscount~s, rebates, allowances, andl all other
terms or conditions of sale, hereinafter in thlis article referred to as
'price terms', which lists shalll completely: andi ac~curately conformn
to and represent the individual pricing practices of said member.
Such lists shall contain the price terms for all such standards prod-
ucts of the industry as are sold or offered for sale by said member
and for such nonl-standard products of saidl mlember as shall be
designasted lby the code authority. Said price terms shall in the first
instance be filed wFFithin fifteen (1_5) days after the date of approval
of this provision. Price ~terms and revised price terms shall becomei
effective immediately upon receipt thereof by the Coord~tinator. Im-
mediately upon receipt thereof, t~he Coordinator shall by~ telegraph
or other equally prompt means notifyl said' member of the time of
such receipt. Such lists and revisions together writh the effect~ive
time thereof, shall upon receipt be immedliately and simultaneously
distributed to all members of thze indulstryr andt to all of their cus-
tomer~s who have applied therefore and have offered to defray t~he
cost actually incurredi by the code authority inl the preparation and
distributtion thereof anrd be available for inspection by any of their
customers at the office of the Coordinator. Said lists; or revisions
or any part thereof shall not be made available to any person until
released to all members of the industry anid their customers, as
aforesaid; provided, that prices filed in the first instance shall not
be released until the expiration of the aforesaid fifteen (15) dlay
period after the approval of this p~rovision. The code authority
shall maintain a permanent file of all price terms filed as hnerein
provided, and shall not destroy any part of such records except upon
written consent of the Admllinistra;tor. Upo~n requeslct, the
agent of the Adlministrafto r rop~ie~s of aIny such lists or re~visio~ns of
"((b) Wheliln ny membenl~r of the industry has filed~ an"y r~evisionl
such member shall n~ot file a hligher'l pli(Ce withinl forty-eig~qht (48)
"L(C) No membel~rl off th~e indcustry~ shall hell or offer1 to sell any
purscjualt to the provisions of this article, xcep~clt in ncordal~t nc~e with~
such price terms11.
"i(d) No mlemblXer of the indusltr~y shall enter into any agflreemlent,
understanding comribinatilon o'r conspirncr y tl. fix or mainiitain price
termis, nor cause or aIttempllt to cealie~ any ownsberlc1 of the industry
to changeScz his p~rice tu~rnis by the use~ of intimiidalti(, i on, everem,l or
any other influences ilconlli'tenlt w\ith the: Iluninltenance of the free
alnd opeT'Iln maret. which it is the purpose,-r of this article to create.
"' SECTIO.N 2. C08t FiHlingl.--The! Code Aulthor~ity3 shall enusl~ie to be
formurlatedl methods of cost findling andr accoun~tingg calpable of use
b~y all me~mber1 of the indtustr, a~nd .,ha~ll submit, a~chT mnethodvt s
to thie AdmninistraRtor for r~eviewt. If nlpproved! by the AdmIninisltrator,
full informaltionl concerning such menthod~c s shall be made available
to all memlibers of the industry. 'Thlletfreafte each memb~ler o~f the
industry sh~all utilize such mnethods(i to the extent found practicabl.le.
~Nothinlg herein co~ntained-i shall be co~nstruledl to permnit th~e Code
Authority, any aIgent thlereof,~ or any~ member:,'l of the :indcustr~y to
suggest uniform additions, per~lcentages or clitfore1ntials or other unli-
form: items of cost whlichi a re de-~igned~ to brling~L about arbitrary
u~niformnity of cos~ts or prices.
L" SECT'ION 3. CostsR anld Plice OU~tting.~;--(a) Thel? standards of fair
competition for the induslltry; withi r'efe'''l~renc to pricing pr1ac~ticecs aIre
decla red to be as follows:
"'(1) W~ilfully (.te-~l~tructiv price cuttingS is anr unfafir~ method of
comp~letitionl andl is forbidden. Any member of thne industry or of
any other indutrytl3 or the cusbanrlllsl- of either mal~y at any time com-
plain to the Code Authlority thatt any! filed price constitultes unfair
competition as detruct~~~tive price cutting, unperiling small enterprises!
or tendingr toward nwnol~poliy or the impa,;ir~men t of codte wagces andl
wo rk;inlg co~nd'itIons. The Codett Au~thority shall wPiithin E5 Ilays afford
ant opportunity to the memberl~1 filing the ~r~icec to answer~l such comn-
pInint and shall within 14 days make a rulring or adjustment thlereon.
If such ruling is not ccon~~l~curr in b~y either party to thze c~omlaint,
al1 ~l paprs shanll be Irefer~red to t~he ReseaPrch andr Pholningr Divi-;ion -
of N1RA which shall render a replort and recommendatiotic n thereon
to th~e AdmIni ni st ra1t r.
""(2) W;he~n no declared emelrgecncy exists as~ to any given prIoduct,
there is to be nlo fixed minimum bansis for prices~. It is int~ndled thnat
sound cost estimlatinr miethlods sh~lould be used anld thaut consideration.
shud even to costs in the dettermi nat~ionl of pr~icing policies.
"(3) hn an lemergency exists as to alny given product, sale
below the stated mlinimnum price of such prodluc~t, in violationl of Sec-
tion 2 hiereof, is forbidden1.
UNIVERSITY OF FLORIDA
g 3 1262 08855 5791
"(b) Emergency Provisions:
(1) If t~he Aldmni nist~rantor, a after i investigation shall at any time
find both (1) that an emergency has risen within the industryr ad-
versely aff'ecting small enlterpr~ises or wages or labor conditions or
tending tow~ard monopoly or other acute conditions which tend to
defeat the purposes of the Act; and (2) that the determination of
the stated miinimnumi price for a specified product within the industry
for a limited period is necessary t~o mitigate t~he conditions consti-
tuting such~ emiergency andl to effectuate the purposes of the Act, the
Code Authority may enuse an imnportial agency to investigate costs
and to recommend to the Admlinistrator a determination of the stated
mninim~um price of the pr'oductt affected by the emergency and t~here-
upon the Admiinistrator may proceed to determine such stated mini-
"'(2) WYhen the Admllinistrator shall havre determined such stated
miniirimum price for a specified product for a stated period, which
price shall be reasonably calculated to mitigate the conditions of such
emergency and to effectuate the purposes of the National Industrial
Recovery Act, he shall publish such price. Thereafter, during such
stated period, no memlber of the~ indlustr~y shall sell such specified
products at- a net realizedl price belowr saidl stated minimum price and
any such sale shall be deemed destructive price cut~ting. Fromt time
to timue, t~he Code Aut.horit.y mnay r~ecomlmend reviewr or r~econsidera-
tion or the Admninistrator may cause any determiinations hereunder
to be reviewed or reconsidered and appr~opr~iate action taken."
Approvedl Code No. 274l-Amendmuent No. 1.
Registry No. 1108-1--02.