NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
SHOE AND LEATHER FINISH
POLISH AND CEMENT
AS APPROVED ON AUG UST 2, 1934
UNIV. OF FL UBI.
UMS ENTS DETO.
Approved Code No. 184--Amendment No. 1
Registry No. 621--25
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Approved Code No. 184---A~mendmen No. 1
AMENDMENT TO COD)E O1F IFAI[R COMPETITION
SHIOE ANDITI LEATH~IIER FINISH~, POLISH AND
CEMENT MANUFACTURIN]R11~;G: INDUSTRY
As Approved on August 2, 1934
APPROVrINO AMIENDMTENTS OF CODE OF FlAIR COMPETITION FOR THE
SHOE AND lENTH-~aER INISH, POLISHf AND CEMENT JfANUFACTURING
An application having been duly made pursuant to anrd in full
compliance wiithi the provisions of Title I of the National lIndustrial
Recovery Act, approvedl June 16, 1933, for approval of anl amend-
mnent to a Code of Fair Competit~ion for the Shoe and Leather
Finish, Polish andl Cement M~anufacturing Industry, and hiearings
having been duly held thereon and the annexedl report on said
amendments, containing findings w~ithL respect thereto, having been
made andt directed to th President:
N~OW, THEREFORE, on behalf of the Presidlent of the U~nited
States, I, Hugh S. Johnson, Administrator for Industrial Recove~ry,
pursuant to authority restedl in me by xctv reso h
President, including Executive Order No0. 6543-A, Odted~ Dectemr
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do find that said amlendmlent and the Code as
constituted after being amendedl comp ly in all r~espects with the p2er-
tinent provisions and will promote he policy and purposes of said
Tileofsaid Act, and do herey order that said amendments be and
they eare hereby approved, and that the previous approarl of said
Coeis hereby modified to include an approval of said Code inl its
entirety as amended, provided, however, that thre following changes
be and they are here made:
1I. Subsection (I[) o'f Section 1. of A1Irticle VII1 be deleted.
2. That the following be inserted as Article VII, Section 1, Sub
section (JT) 3:
3. (a) Wilfullg destructive price cutting is an unfair method of
competition and zs forbidden. Aniy member of the Industry or of
any other Industry or the customers of either may at any time com~-
plain to the Code Authority that any quoted price constitutes unfair
competition as destructive price-cuttngr, imlperiling small enterprises
or tending toward mnonopoly or the impairment of code wages and
working conditions. The Co0de Authority shall within five days
afford an opportunity to the m~emnber using the price to answer such
complaint and shall within fourteen days make a ruling or adjust-
ment thereon. If such ruling is not concurred in by either party
to the complaint, all papers shall be, referred to the Research and
Planning Division of N.R.A. which shall render a report and recom-
mnendation thereon to the Administrator.
(b) W~hen no declared emergency exists as to any~ given product,
there is to be no fixed minimum basis for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
(c) Whnen an emergency exists as to any given product, sale
belowc thne stated minimum price of such product, in violation of
Section 2 hereof, is forbidden.
This order shall become effective ten days after the date hereof
unless wPithin that time good cause to the contrary shall be shown
to the Administrator and he shall issue a subsequent order to that
HUns S. JoHNSON
Adiminzistrator for I~ndustrial ~Recovery.
Approval recommended :
G]EO. L. BERRY,
Aulgust 9, 1934.
REPORT TO THE PRESIDENT
Th~re lU'hite House.
SmR: A Code of Fair Competition for the Shoe and Leather Finish,
Polish and Clement Manufacturing Industry wRias approved by you
on December 30, 1933, and became effective on January 8, 1934.
Since that time, it has been dteemed advisable to brmg~ within th
scope of the above Code a, group which is closely allied -to thre Shoe
and Leather Finish, Polishi and Cement Mannu~facturing Industry.
This group is the Fabric Clleaner Industr~y.
The Code ALuthority for the Shoe and Leather Finish, Polish and
Cement M~anufacturing Indusiitry andl a group representing approxi-
mnately seventy-five (75%0) per cent of the Fabric Cleaner manu-
facturers, submitted an application to include the above mentioned
group under the approved Code. A Public HF-earing on the proposed
aImendments wsas conducted in Wa~shington, ia~y 22nd, 19341, inl ac-
cordance with the provisions of the N~ational Industrial Recovery
B3y amendin~r the definition of the Ilndust~ry and the definition of
the Shoe Polisg Division, under which Divislon the Fabric Cleaner
manufacturers will be classified, the group has been included under
the provisions of the Shoe and Leather Finish, Polish and Cement
Manufacturing Industry's Code. The Code Authority has been en-
larged to fourteen (14) members in order that it may- be truly repre-
sentative of the Industrly. The Code has also beenI amended to allow
the Code Authority to assess members of the Industry in order thlat
the Code may be properly administered. There has also been added
a provision for the formulation of methods of cost finding and ac-
counting, which provision applies onlyg to th Shoe and Leather
Finish and Cement D~ivision.
The FIabric Cleaner Industry includes the manufacture of liquids
for cleaning wearing apparel sold under a trade name, arnd not sold
as a basic commodityS. There are about 550 establishments listed as
manufacturers to some extent of fabric cleaners. MSost of these firms
are small or operate part-time under this classification. The larger
shoe polish manufacturers generally make fabric cleaners aos do some
oil companies and chemical special manufacturers.
The aggregate number of employees in 1929 is estimated at about
1;000. Annual business is estimated at about $2,500,000 in recent
The restrictions of the definition, together with the general lack: of
organization in the Industry make it impossible to obtain accurate
statistical data regarding it.
The DeputyT Administrator in his final report to me on said
amendments to said Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I 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 Ahct including the removal of ob~struc-
tions to 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 organizations of Industry for thze purpose of
cooperative action of labor and mnagll~lremlent under adequate govern-
mental sanction and supervision, by eliminating unfair competitive
practices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (exclept as may be temporarily required), b~y increasing
the consumption of industrial arnd agricultural products through in-
creasing purchasing power, by reducing and relieving unemploy-
ment, by- improving standards of labor, and by otherwise rehabili-
(b) The Code as amended complies in all respects with. the perti-
nent provisions of said Title of said Act, including without limita-
tion subsection (a) of Section 3, subsection (a) of Section 7, and
subsection (b) of Section 10 thereof.
(c) The Fabric Cleaner Group of Manufacturers was and is an
industrial group, which, together with the Code Authority are
truly representative of thle aforesaid Industry and that said group
and said Code Authority imposed and imposes no inequitable re-
strictions on admission to membership therein and has applied for
(d) The amendments and the Code as amended are not designed
to and will 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. deprived of the right to be heard prior to approval of said
F'or these reasons, therefore, the amzendmnents have been approved.
HJUouA 8. JoHNaon,
Administrator for Indu~strial Recovrery.
AUIGUIST 2, 1934.
AMEND1LIENT TO` COD)E] OF FATR COMPETITION IFOR THE
SHOE AND LEATHER FINISH, POCISH AND CEMENT
Article II Section 1I shall be amendedl to read as follows:
The term. Shoe and Leather Finish, Polish and Cement Mianu-
facturing Industry as used heretin includes ~the manufacturing for
shoes and leathers of : Blackings, dressings, liquid rubber cements
(meaning adhesives), pastes, pyroxylin cements, rubber (synthetic
or natural, either dispersed or dissolved), polishes, dyes, and clean-
ers, stitching waxes, burnishing waxes, finishes, binders, topcoats,
reenforcing materials for innersoles, and other similar chemical p~rod-
ucts for use on shoes or leather, or liquids for cleaning wearing ap-
parel sold under a trade name, and not sold as a basic commodity,
together with such, allied or related products as may from time to
time, upon the approval of the President, be included under th
provisions of this Code.'"
Article IIr, SCeotion 9. TChe following sentence shall be added
L"This division shall include thre manufacturers of liquids for
cleaning ering aparel sold under a trade name, and not sold as
A1rtcle VI, Section 9, shall be amended to read as follows:
SECTIJ 2. Organlization anud Constitu~tion of Code Aucthority
Board.--The Code Authority Board shall be composed of members of
the Industry and shall. consist of :fourteen (14) memers to be se-
lected as follows: Eight (8) members of the Code Authority Board
shall be. appointed by the Administrator from members of the Shoe
Polish D~ivision, of whom six (6) are to be appointed from members
who are primarily manufacturers of Shoe Polish and of wChom tFoO
(2) are to be appointedl from members who are primarily Cleanino
Fluid Manufacturers, and six (6) members from the Shoe ani
Leathr Finish and Cement Division to be selected as follows: The
Executive Committee of the Association of Ml~anufacturers of Shoe
and Leather Finishes and Cements shall submit the names of twFelve
(12') nominees, of whom six shall be elected by the majority vote of
the members of the Industry as a whole. Five of the six elected
by this method shall be members of the Association."
Article OI, Section 7, shall be deleted and the followingo sub-
"7. 1. ~It being found necessary in order to support the adminis-
tration of this Cjode and to maintain the standards of fair compe-
tition 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'
prope for the foregoing purposes, and to meet such obligations out
ofuds which may be raised as hereinafter provided and which
shall be held in trs for the purposes of the C-ode;
(b) T'o submit to the Administrator for his approval subject to
such notice and opportunity to be heard as he may deem necessary:
(1) Atn itemized budget of its estimated exp~ensies for thre fore-
going purposes, and
(2) An equitable basis upon which the funds necessary to support
such budget shall be contributed b~y members of the Inldu-try.
(c) After such budget and basis of con-tr~ibutionl have been. ap-
proved by the Admlinistrator, to determine and obtain equitable
contribution as above set forth by all members of the IndustryT, and
to that end, if necessary, to institute legal proceedings therefore in
its own name.
2. Each member of the Industry shall pay his or its equitable
contribution to the expenses of th~e maintenance of the Code A~uthor-
ity, determined as hereinabove provided, and subject to rules and
regulations pertaining thereto issued by the Administrator. Only
members of the Industry complying with th~e Code and contributingf
to the expenses of its administration as hereinabove provided, shall
be entitled to participate in the. selection of members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of anry emblemn or insignia of the National Recovery
3. The Code Authority shall neither incur nor pay any obligation
in excess of the amount thereof as estimated in its approved budget,
except upon approval of the Administrator; and no subsequent bud-
get shall contain any deficiency item for expenditures in excess of
prior budget estimates except those which the Administrator shall
have so approved."
Article VI~, Subsections F and G of Section 9 shall be deleted.
There shall be a le~w section added to Sectionz 1, Article VII, which
shall be hereinafter known as Section J:
SECTION J. 1. The Code Authori~ty shall cause to be formulated
methods of cost finding and accounting capable of use by all mecm-
bers of the Industry, and shall submit such methods to t~hec Admin-
Istrator for review. If approved by the Administrator, full infor-
mation concerning such methods shall be~ made available to all m3em1-
bers of the Industry. Thereafter, each member of the Industry shall
utilize such. methods to the extent found practicable. Nothing here~-
in contained shall be construed to permit the Code Authority, any
agent thereof, or any member of the Industry to suggest uniform
additions, percentages, or differentials or otherr uniform items of
cost which are designed to brig about arbitraryT uniform~it~y of costs
2. (a)If the Administrator, after investigation, shall at an~y time
fin bth(1) that an emergency has arisen within the Industry
advrsey afeciwrsmall enterprises or lwages or labor conditions
or tending towdeslarfe8i6 mono~poly or other acute conditions which tend
to defeat the purposes of the Act; ancd (2) thant the determination
of the stated minimum price for a specified products within the
3Industry for a limited period is necessary to mitigate the conditions
constituting such emnerge~ncyg and to effectuate thie purposes of the
Act, the Code Authority may cause an impartial agrencyr to investi-
gate costs and to :recommend to thne Administrator a determination of
the stated mninimum price of the product affected by the emergneny
and thereupon the Administrator may proceedl to determine such
stated minunum price.
~(b) Wh~en the Administrator shall have! determninedl such stated
mmimu price for a specified product for a stated p~eriodl, wvhichn
price shall be reasonably calculated to mitigate the conditions of
such emergency and to effectuate the purp~oses of thne N~ational Ind'us-
trial Recovery Acet, he shall publish~ such; price. Thereafter, during
such stated period, no member of the Industryr shall sell suc speci-
fled products at a net realized price below saidl stated minimum pnces
and any such sale shall be dZeemed destructive price cu~tting. From
time to time, the Code .Authority miay r~ecomlmend review or recon-
sideration or the Administrator may cause. any determinations here-
under to be reviewed or reconsidered and appropriate action tlkeln.
Apy~rovsed Code No. 184l--Amendment N~o. 1.
1tRegistry N'o. 621-05.
UINIVERSITYY OF FL ORIDA
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