NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MILK FILTERING MATERIALS
AND THE DAIRY PRODUCTS COTTON
AS APPROVED ON APRIL 6, 1935
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Approved Code No. 396-Amendment No. 2
Registry No. 223-02
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Approved Code No. 396-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
MILK FILTERING MATERIALS AND THE DAIRY
PRODUCTS COTTON WRAPPINGS INDUSTRY
As Approved on April 6, 1935
APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE MILK
FILTERING MATERIALS AND THE DAIRY PRODUCTS COTTON WRAPPINGS
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 Milk Filtering Materials
and the Dairy Products Cotton Wrappings Industry, 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, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive orders of the President, including
Executive 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 complies 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.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Officer.
M. D. VINCENT,
Acting Division Administrator.
WASHINGTON, D. C.,
April 6, 1935.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Hearing on the Amendment to the
Code of Fair Competition for the Milk Filtering Materials and the
Dairy Products Cotton Wrappings Industry, held in Room 2062 of
the Department of Commerce Building, on January 7, 1935. The
Amendment which is attached was presented by the Code Authority.
In accordance with the customary procedure every person who had
filed a request for an appearance was freely heard in public, and all
statutory and regulatory requirements were complied with.
The following Amendment is submitted for approval:
Article VIII of the Code as now written relating to price filing
has been replaced by open price filing ", costs and price cutting ",
and "emergency provision ", as set forth in Office Manual, Part II,
Section 3031.15211 to .152222, inclusive, and adding thereto the
provisions for classifications of customers as set forth in Office
Memorandum 267, dated July 20, 1934.
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 proceedings in this
The National Industrial Recovery Board 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 ob-
structions 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 among trade groups, by inducing arid main-
taining united action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive 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 reliev-
ing unemployment, by improving standards of labor, and by other-
wise rehabilitating industry.
(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 Code empowers the Code Authority to present the
aforesaid Amendment on behalf or the Industry as a whole.
(d) The Amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.
(e) 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.
(f) Those engaged in other steps in the economic process have not
been deprived of the right to be heard prior to approval of said
For the above reasons this Amendment has been approved.
For the National Industrial Recovery Board:
W. A. H.\RRIMAN,
APRIL 6, 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE MILK FILTERING MATERIALS AND THE DAIRY
PRODUCTS COTTON WRAPPINGS INDUSTRY
Article VIII is to be amended to read as follows:
1. (a) Each member of the industry shall file with a confidential
and disinterested agent of the code authority or, if none, then with
such an agent designated by the National Industrial Recovery Board,
identified lists of all of his prices, discounts, rebates, allowances, and
all other terms or conditions of sale, hereinafter in this article re-
ferred to as "price terms ", which lists shall completely and accu-
rately conform to and represent the individual pricing practices of
said member. Such lists shall contain the price terms for all such
standard products of the industry as are sold or offered for sale by
said member and for such non-standard products of said member as
shall be designated by the Code Authority. Said price terms shall
in the first instance be filed within 30 days after the date of approval
of this provision. Price terms and revised price terms shall become
effective immediately upon receipt thereof by said agent. Imme-
diately upon receipt thereof, said agent shall by telegraph or other
equally prompt means notify said member of the time of such receipt.
Such lists and revisions, together with the effective time thereof,
shall upon receipt be immediately and simultaneously distributed to
all members of the industry and to all of their customers who have
applied therefore and have offered to defray the cost actually incurred
by the Code Authority in the preparation and distribution thereof
and be available for inspection by any of their customers at the office
of such agent. Said lists or revisions or any part thereof shall not
be made available to any person until released to all members of the
industry and their customers, as aforesaid; provided, that prices
filed in the first instance shall not be released until the expiration
of the aforesaid 30 day period after the approval of this Code. The
Code Authority shall maintain a permanent file of all price terms
filed as herein provided, and shall not destroy any part of such
records except upon written consent of the National Industrial
Recovery Board. Upon request the Code Authority shall furnish to
the National Industrial Recovery Board or any duly designated
agent of the National Industrial Recovery Board copies of any such
lists or revisions of price terms.
(b) When any member of the industry has filed any revision,
such member shall not file a higher price within forty-eight (48)
(c) No member of the industry shall sell or offer to sell any
product, services of the industry, for which price terms have been
filed pursuant to the provisions of this article, except in accordance
with such price terms.
(d) No member of the industry shall enter into any agreement,
understanding, combination or conspiracy to fix or maintain price
terms, nor cause or attempt to cause any member of the industry
to change his price terms by the use of intimidation, coercion, or
any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Article to create.
2. The standards of fair competition for the industry with refer-
ence to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the industry or
of any other industry or the customers of either may at any time
complain to the Code Authority that any filed price constitutes
unfair competition as destructive price cutting, imperiling small
enterprise or tending toward monopoly or the impairment of code
wages and working conditions. The Code Authority shall within
5 days afford an opportunity to the member filing the price to
answer such complaint and shall within 14 days make a ruling or
adjustment 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
recommendation thereon to the National Industrial Recovery Board.
(b) When 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) When an emergency exists as to any given product, sale below
the'stated minimum price of such product, in violation of Section 3
hereof, is forbidden.
3. (a) If the National Industrial Recovery Board, after investi-
gation shall at any time find both (1) that an emergency has
arisen within the industry adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other acute
conditions which tend t.o defeat the purposes of the Act; and (2)
that the determination of the stated minimum price for a specified
product within the industry for a limited period is necessary to
mitigate the conditions constituting such emergency and to effectuate
the purposes of the Act, the Code Authority may cause an impartial
agency to investigate costs and to recommend to the National Indus-
trial Recovery Board a determination of the stated minimum price
of the product affected by the emergency and thereupon the Na-
tional Industrial Recovery Board may proceed to determine such
stated minimum price.
(b) When the National Industrial Recovery Board shall have
determined such stated minimum 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, it shall publish such price.
Thereafter, during such stated period, no member of the industry
shall sell such specified products at a net realized price below said
stated minimum price and any such sale shall be deemed destructive
price cutting. From time to time, the Code Authority may recom-
mend review or reconsideration or the National Industrial Recovery
Board may cause any determinations hereunder to be reviewed or
reconsidered and appropriate action taken.
4. (a) The Code Authority shall cause to be formulated and keep
current a classification of all types of customers of the industry.
Such classification shall be subject to the disapproval of the Na-
tional Industrial Recovery Board and shall contain: (A) A complete
list of all of the classes of customers of the industry, including a
class to cover every known type of customer, and (B) definitions or
descriptions of the several classes in terms of functions performed,
or in other appropriate terms such as purchasers of defined quantities.
(b) After submission to the National Industrial Recovery Board,
if there is no disapproval or request for suspension of action within
twenty (20) days, full information concerning the classification shall
be made available to all members of the industry. No one shall by
intimidation, coercion, or other undue influence cause or attempt
to cause the inclusion of any customer in or the exclusion of any
customer from any class of customers, or the exclusion of any class
of customers from the classification, or the use of uniform or stipu-
lated prices, discount, or differentials and each member of the in-
dustry may at all times classify his own customers in accordance
with his own judgment.
Approved Code No. 396-Amendment No. 2.
Registry No. 223-02.
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