NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
OR DISTRIBUTING TRADE
AS APPROVED ON OCTOBER 26, 1934
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Approved Code No. 201-Amendment No. I
Registry No. 1625-59
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Approved Code No. 201-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
WHOLESALING OR DISTRIBUTING TRADE
As Approved on October 26, 1934
APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
WHOLESALING OR DISTRIBUTING TRADE
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an amend-
ment to a Code of Fair Competition for the Wholesaling or Dis-
tributing Trade, and notice of opportunity to be heard having been
duly given thereon and the annexed report on said amendment, con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including Ex-
ecutive Order 6859, dated September 27, 1934, and otherwise, does
hereby incorporate by reference said annexed report, and does find
that said amendment and the Code as constituted after being
amended comply in all respects with the pertinent provisions and
will promote the policy and purposes of said Title of said Act, and
does hereby order that said amendment be and it is 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, such
approval and such amendment to take effect fifteen (15) days from
the date hereof, unless good cause to the contrary is shown to the
National Industrial Recovery Board before that time and the Na-
tional Industrial Recovery Board issues a subsequent order to that
NATIONAL INDUSTRIAL RECOVERY BOARD,
By G. A. LYNCH, Administrative Officer.
ROBERT L. HOUSTON,
WASHINGTON, D. C.,
October 26, 1934.
REPORT TO THE PRESIDENT
The White House.
SiR: This is a report on an amendment to the Code of Fair Com-
petition for the Wholesaling or Distributing Trade, said Code being
Approved Code No. 201, approved by you on January 12, 1934.
This Code has been amended by striking out Section 4 of Article
VI and inserting a new section which will empower the General
Code Authority for the above Trade to submit a budget and basis of
contribution for each member of the Trade and to obtain equitable
contributions from all members of the Trade.
The Deputy Administrator in his final report to the National
Industrial Recovery Board on said amendment to said Code having
found as herein set forth and on the basis of all the proceedings in
It finds that:
(a) The amendment 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 ade-
quate governmental 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 (except as may be temporarily required),
by increasing the consumption of industrial and agricultural prod-
ucts through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.
(d) The amendment 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 have
not been deprived of the right to be heard prior to the approval of
this amendment to the Code.
For these reasons the amendment to the above-named Code has
For the National Industrial Recovery Board:
G. A. LYNCH,
OCTOBER 26, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE WHOLESALING OR DISTRIBUTING TRADE
The Code of Fair Competition for the Wholesaling or Distributing
Trade is hereby amended by striking out Section 4 of Article VI and
inserting a new Section 4 reading as follows:
Section 4. Payl met of Cost of Code Administbratiobn.-(a) It
being found neces.-ary in order to support the administration of this
Code and to maintain the standards of fair competition established
under this Code and to effectuate the policy of the Act, the General
Code Authority is authorized
(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purpo-s.-, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
,hall be held in trust for the purposes of the Code;
(2) To submit to the National Industrial Recovery Board for its
approval, subject to such notice and opportunity to be heard as it
may deem necessary.(i) an itemized budget of its estimated expenses
for the foregoing purposes, and (ii) an equitable basis upon which
the funds necessary to support such budget shall be contributed by
members of the Trade;
(3) After such budget and basis of contribution have been ap-
proved by the National Industrial Recovery Board, to determine
and obtain equitable contributions as above set forth by all members
of the Trade. and to that end, if necessary, to institute legal proceed-
ings therefore in its own name.
(b) Each member of the Trade not governed by a specific Sup-
plementary Code for the particular commodity division in which he
or it operates shall pay his or its equitable contribution to the ex-
penses of the maintenance of the General Code Authority direct to
the General Code Authority, and each member of the Trade oper-
ating within a specific comnmolitY division for which has been ap-
proved a Supleimentary Code shall pay his or its equitable contri-
bution to the expenses- of the maintenance of the General Code
Authority through the Divisional Code Authority administering the
Supplementary Code governing the c-m rnoodity division within which
such member of the Trade operates, and each Divisional Code Au-
thority as such shall pay its equitable contribution to the expenses
of the maintenance of the General Code Authority, determined as
hereinabove provided, and subject to rules and regulations pertain-
ing thereto issued by the National Industrial Recovery Board. Only
members of the Trade complying with the General Code and con-
tributing to the expenses of the administration of the said Code as
hereinabove provided, unless duly exempted from making such con-
tributions, shall be entitled through such Divisional Code Authori-
ties, or as otherwise provided, to participate in the selection of
members of the General Code Authority or to receive the benefits
of any of the voluntary activities of said Code Authority or to
make use of any emblem or insignia, of the National Recovery
(c) The General Code Authority shall neither incur nor pay any
obligation substantially in excess of the amount thereof as estimated
in its approved budget, and shall in no event exceed the total amount
contained in the approved budget, except upon approval of the
National Industrial Recovery Board; and no subsequent budget shall
contain any deficiency item for expenditures in excess of prior budget
estimates except those which the National Industrial Recovery Board
shall have so approved.
Approved Code No. 201-Amendment No. 1.
Registry No. 1625-59.
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