NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS-APPROVED ON SEPTEMBER 21, 1934
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Approved Code No. 60-Amendment No. 6
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Approved Code No. 60-Amendment No. 6
AMENDMENT TO CODE OF FAIR COMPETITION
As Approved on September 21, 1934
APPROVING AMENDMENT TO CODE OF FAIR COMPETITION TO THE RETAIL
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 amendment
to a Code of Fair Competition for the Retail Trade, and hearings
having been duly held thereon and the annexed report on said
amendment, containing findings with respect thereto, having been
made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate, by reference, said
annexed report and do 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 do hereby order that said amendment be
and it is hereby approved, and that the previous approval of said
Code is hereby modified to include an approval of said Code in its
entirety as amended.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
ROBERT L. HOUSTON,
September 1, 1934.
87137-- 1181-88--34 I1
REPORT TO THE PRESIDENT
The W'h;te House.
SIR: On March 29, 1934, an amendment. to the Code of Fair Com-
petition for the Retail Trade was approved which established a
new loss limitation base for the Retail Drug Trad1e. On June 7,
1934, at a public hearing called to determine the effects of this
amendment upon the Trade after sixty days of operation, it was
found that enforcement of this provision, while good, had been ham-
pered somewhat by the last proviso which permitted certain deduc-
tions on account of manufacturer's discounts and allowances to dozen-
lot purchasers. These allowances have only a negligible effect on
the resuilt:'.n price, yet cau.-ne considerable confusion in its de-
The National Retail Drug Code Authority, at this heariing pro-
posed the elimination of this proviso, and has submitted the annexed
amendment which is decigined to clarify and render more practicable
and enforceable the previous clause, at the same time giving the
Adlini.strator expri-.-s power to safeguard the interests of con-
-umueLs and small enterprises in individual ,'aer.
This amendment does not alter the principle set forth in the pre-
vious provision nor does it appr'eciably alter the basis on which that
priinliple was ipplie1, except insofar as that h:bis had proven con-
fusing in practice.
The Deputy Adniini-tr'at'r in his final report to me on said amend-
Iumeit to said Code having fimioun as herein set forth and on the
b:,i.is of all the proc-eidiniLg;. in this imattetr;
I find that:
(a) The :arin l!ndoirut to said code and the Code as amended are
well dt.!-inel' to promote the policies and purp(oses of Title I of the
National Lndustrial Recovery Act including the removal of obstruc-
tiocn, to tlo free flow of inter.et'-ate and foreign commerce which tend
to1 dirmlni h the amount thereof, and will provide for the gen--eral
welfare by promoting the organization of industry for the purpose
of cooperative a'tioi, of labor and i;mani:igement inli ,r ad: quiat,, gov-
ermi intal cal.netion and supervision, by eliiiiinti ng unfair compet-
itive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production exceptt as may be temporarily required), by
inc'vt;a-iiig the consumption of inl'du trial and agric-iltural products
through in,-'r.asing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwiise
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
sub-section (a) of Section 3, sub-section (a) of Section 7 and sub-
section (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment on behalf of the Trade as a whole.
(d) The amendment andl the Code as amended are not designed
to and will not permit monoIpolies or monopolistic practices.
(e) The amendment and the Code as amended are not designed to
and will not eliminate or oppress .-mall enterprises and will not oper-
ate to discriminate against them.
(f) Those engaged in other Ateps of the economic process have
not been deprived of the right to be heard prior to approval of said
(g) This amendment is imperative to the existence of the Retail
Drug Trade and without such a provision the said Trade will not
be able to comply with the other provisions of the Code established
For these reasons the amendment has been approved.
HUGH S. JOHNSON,
SEPTEMBEnR 21, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE RETAIL TRADE
Section 6 of Schedule "A" of the Code of Fair Competition for
the Retail Trade, as amended, is hereby amended as follows:
SEC. 6. It is hereby declared an unfair trade practice for any
drug retailer to sell any drugs. medicines, co-minetics, toilet prepara-
tions or drug sundries at a price below the manufacturers' wholesale
list price per dozen; provided, however, that in the case of biological
or other of the above-ltmentioned products, which are not customarily
sold in dozen or greater lots, the Code Authority may fix a com-
parable unit quantity.
The Administrator, at the recommendation of the National Retail
Drug Code Authority or otherwise, after such notice and hearing
as he may deem mn.'re-;ry, may suspend or modify the operation of
this clause at any time when it appears that such operation does
not tend to effectuate the purposes of Title I of the Act. The Ad-
ministrator shall suspend or modify the operation of this clause in
any particular case where a manufacturer is found to be manipulat-
ing his prices because of this provision in such a manner as to main-
tain an unwarrantedly higher price to the ultimate consumer or to
oppress small enterprises, or otherwise to defeat the purposes of
Approved Code No. 60-Amendment No. 6.
Registry No. 1625-2-02.
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