Approved Code No. 60-Amendment No. 3 Registry No. 1625-2--02
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON AUGUST 23, 1934
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Approved Code No. 60-Amendment No. 3
Registry No. 1625-2--02
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Approved Code No. 60-Amendment No. 3
AMENDMENT TO CODE OF FAIR COMPETITION
As Approved on August 23, 1934
APPROVING AMENDMENTS TO CODE OF FAIR COMPETITION FOR THE
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 amendments
to the Code of Fair Competition for the Retail Trade, and hearings
having been duly held thereon and the annexed report on said
amendments 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 Pres-
ident, 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 amendments and the Code as constituted
after being amended comply in all respects with the pertinent pro-
visions and will promote the policy and purposes of said Title of said
Act, and do hereby order that said amendments be and they are
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, such approval and such amendments to take effect ten
(10) days from the date hereof, unless good cause to the contrary
is shown to the Administrator before that time and the Adminis-
trator issues a subsequent order to that effect.
HUGH S. JOHNSON,
Administrator for Indusatrial Recovery.
ROBERT L. HOUSTON,
August 23, 1934
REPORT TO THE PRESIDENT
The White House.
SIR: The Hearing on the amendments to the Code of Fair Com-
petition for the Retail Trade was held on May 4, 1934, at the May-
flower Hotel. The amendments, which are attached, were presented
by duly qualified and authorized representatives of the Trade, com-
plying with statutory requirements, such representatives being the
members of the National Roriil Code Authority, Inc.
In accordance with the customary procedure, everyone present who
had filed a request for an appearance was freely heard in public,
and all statutory and regulatory requirements were complied with.
The Di.puity Administrator in his final report to me on said amend-
ments to said Code having found as herein set forth and on the basis
of all the plroceidings 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 purp ,:-e, of Title I of the
National Indu-trial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign conmm erce 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 adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production (except as may be temporarily required), by
increasing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
(b) The Code as amendedt.1 complies in all respects with the perti-
nent provisions of said Title of said Act, inr'lnding without limita-
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and
sub-section (b) of Section 10 thereof.
(c) The Amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(d) The Amendments and the Code as amended are not designed
to and will not eliminate or oppress small entrpri.es and will not
opl'rate, to discriminate again -t 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 said
For these reasons I have approved said anmeldmlIents to the Code
of Fair Competition for the Retail Trade.
IHuca S. JiIINsoN,
A tin ti esfr'afor.
AUGUST 23, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE RETAIL TRADE
Article II, Section 1 shall be amended to read as follows:
"Section 1. Retail Trade-The term 'Retail Trade' as used herein
shall mean all selling of merchandise to the consumer and not for
the purposes of resale in any form, and all servicing of such. mer-
chandise normally performed in connection with retail selling, in the
continental United States, excluding the Panama Canal Zone. It is
provided, however, that the term shall not include the selling at re-
tail of milk and its products, tobacco and its products, and foods and
foodstuffs, or the dispensing of drugs, medicines, and. medical sup-
plies by a physician, dentist, surgeon or veterinarian in the legitimate
practice of his profession; and it is further provided that the term
shall not include any division of retail selling which is now or may
hereafter be governed by a separate Code of Fair Competition ap-
proved by the President of the United States or the Administrator
for Industrial Recovery."
Article V, Section 3 (c) shall be amended to read as follows:
"(c) Any establishment may for a period not to exceed three (3)
consecutive months during the year, temporarily reduce its store
hours but no employee's weekly wages shall be reduce during such
period on account of such reduction of store hours."
Article V, Section 4 (a) shall be amended to read as follows:
"(a) Professional persons, watchmen, guards and store detectives,
outside salesmen and outside collectors-- The maximum hours of
labor prescribed in Section 1 of this Article shall not apply to pro-
fessional persons employed and working at their profession, or to
watchmen, guards and store detectives, outside, salesmen and outside
collectors; but watchmen and guards shall not work more than fifty-
six (56) hours in any one week, nor more than thirteen (13) days in
any fourteen (14) day period."
Article V, Section 5 shall be amended to read as follows:
"Section 5. Limitation upon number of persons working unre-
stricted hours.-Notwithstanding the provisions of the foregoing
sections of this Article, and regardless of the number of persons
otherwise permitted to work unrestricted hours, the total number of
workers in any establishment (whether such workers are executives,
proprietors, partners, persons not receiving monetary wages, or
others) who shall be permitted to work unrestricted hours shall not
exceed the following ratio, to be computed upon the average number
of employees during the preceding twelve (12) months: In estab-
lishments comprised of twenty (20) workers or less the total number
of workers wlho may work unrestricted hours (not including those
workers specified in Sections 4 (a) and (b) of this Article) shall
not exceed one worker for every five (5) workers or fraction thereof;
in establishments comprised of more than twenty (20) workers the
total number of workers who may work unrestricted hours (not
including those workers specified in Sections 4 (a) and (b) of this
Article) shall not exceed one worker for every five (5) workers for
the first twenty (20) workers and shall not exceed one worker for
every eight (8) workers above twenty (20)."
There shall be added to Article VIII the following Section:
"Section 3. Combination or group sales-In group offerings or
sales of merchandise the selling price of the group shall not be less
than the sum of the minimum selling prices of the individual items
of the groups as determined in accordance with Article VIII, Sec-
tions 1 and 2.
"In group offerings or sales of merchandise, where the selling
price of one or more items of the group is indicated, the price indi-
cated for each item or items, expressly or by inference, shall not be
less than the minimum price of each item or items, as determined in
accordance with Article VIII, Sections 1 and 2.
Provided, however, this Section shall not be construed to apply
to the use of bona fide premiums as provided for in Article VIII,
Section 2 (c) of this Code.
Provided, further, that this Section shall not apply to the sale
of drugs, medicines, cosmetics, toilet preparations, drug sundries
and/or allied items as defined in Schedule A, Section 1."
There shall be added to Article IX, Section 1 the following
"(f) No retailer shall sell or offer for sale any merchandise upon
a condition which involves a lottery, gamble, or element of chance,
similar to what is commonly known as a Suit Club Plan', provided,
however, that this sub-section shall not apply to non-profit organi-
zations not definitely constituted to carry on retail trade."
Approved Code No. 60--Amendment No. 3. Registry No. 1625-2-02.
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