IoNAL RECOVERY ADMINISTRATION
:CODE OF FAIR COMPETITION
I FOR THE
l ::.;AS APPROVED ON APRIL 19, 1934
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Approved Code No. 54-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
S' FOR THE
As Approved on April 19, 1934
MODIFICATION OF CODE OF FAIR COMPETITION FOR THE THROWING
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 a modifi-
cation of the Code of Fair Competition for the Throwing Industry,
and the annexed report on said modification, 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 Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate, by reference, said an-
nexed report and do find that said modification and the Code as
constituted after being modified comply in all respects with the per-
tinent provisions and will promote the policy and purposes of said
Title of said Act, and do hereby order that said modification be and
Sit is hereby approved, and that the previous approval of said Code
1 is hereby modified to include an approval of said Code in its en-
j.~ tirety as modified, such approval and such modification to take effect
Stein days from the date hereof, unless good cause to the contrary is
:shown to the Administrator before that time and the Administrator
I issues a subsequent order to that effect.
:HUGH S. JOHNSON,
::Administrator for Industrial Recovery.
H. 0. KING,
.: April 19, 1934.
s:."4: 539490-482-109--341 (1)
REPORT TO THE PRESIDENT
The PRESDENT, .' : : .: *
The White House.
SIR: The attached revision of Section 4 of'the Code of Fair Com-r'
petition for the Throwing Industry has been made primarily so that:
the administrative provisions of this code will conform with tihe::
standard provisions contained in. more recently approved codes.
The Code Administration Committee for the Throwing Industry !
originally submitted a provision providing only for the power to:
assess the industry for the cost of administering the code. A copy .
of their proposal was inserted in the weekly bulletin of the Throw-::::
sters Research Institute and sent to all members of the trade. This
notice also stated that if anyone had any objections they .should be :
filed in writing with the National Recovery Administration. No.".:.
objections were received.
As long as this amendment was being made to the code, it was
thought advisable to revise the entire administrative section as pre-o
The Deputy Administrator in his final report to me on said modi-
fication of said Code having found as herein set forth and on the.
basis of all the proceedings in this matter: ..
I find that: .
(a) The modification of said Code and the Code as modified ar.it
well designed to promote the policies and purposes of Title I of th)e..
National Industrial Recovery Act including the removal of obst'ru. ':::
tions to the free flow of interstate and foreign commerce which teo.i:
to diminish the amount thereof, and will provide for the gene. .
welfare by promoting the organization of industry for the purp
of cooperative action among trade groups, by inducing and maiSJ.
training united action of labor and management under adequate gt
ernmental sanction and supervision, by eliminating unfair coi,
tive practices, by promoting the fullest possible utilization o
present productive capacity of industries, by avoiding undue
tion of production (except as may be temporarily required), by'i
creasing the consumption of industrial and agricultural produ
through increasing purchasing power, by reducing and relievii"
unemployment, by improving standards of labor, and by othi
(b) The Code as modified complies in all respects with the perti-"
nent provisions of said Title of said Act, including without limitati ni'
Subsection (a) of Section 3, Subsection (a) Section 7 and SubseL.t io
(b) of Section 10 thereof.
(c) The Throwsters Research Institute was and is an industrial
association truly representative of the aforesaid Industry and t
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seaid' association imposed and imposes no inequitable restrictions on
i admission to membership therein and has applied for or consents to
i this, modification.
(d) The modification and the Code as modified are not designed
: to and will not permit monopolies or monopolistic practices.
l 4)ii0: The modification and the Code as modified are not designed
: To and will not eliminate or oppress small enterprises- and will not
Operate to discriminate against them.
S () Those engaged in other steps of the economic process have not
i4 en "deprived of the right to be heard prior to approval of said
:. jor these reasons, this modification has been approved.
"." HUOH S. JOHNSON,
,. ,. 19, 1934.
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The present Section 4 shall be deleted from the Code anm:l' ::!
Following Section inserted in its place. ..
SECTION 4. Administration.-(a) To further effectuate the t a': -
cies of the Act, a Code Administration Committee is set up to' cop'- .
rate with the Administrator as a Planning and Fair "Practicp::.:
Committee for the Industry. This Committee shall consist :o
twelve members in addition to the President of the Throwsteni
Research Institute, Inc., who shall be chairman. The exeiutiv e:
Secretary of the Throwsters Research Institute, Inc., shall serve as :
Secretary of the Code Administration Committee. There shall ."be
at least one committee member chosen from each of the following
groups of employers-commission throwsters of weaving yarns, corn- :*
mission throwsters of knitting yarns, rayon and/or cotton weavers, ::
knitters, yarn dealers, and silk weavers, i
(b) The Administrator shall appoint an impartial member or :
members not to exceed three in number who shall have no vote but .:.i
shall in all other respects be members of the said Code Administra- :'
(.c) Employers shall be entitled to participate in and share th a ai
benefits of the activities of the Code Administration Committee a~S.i
to participate in the selection of the members thereof by assentiag
to and complying with the requirements of this Code and sustainitng.i
their reasonable pro rata share of the expense of its administrations
The reasonable share of the expense of administration shall be 4d.':
termined by the Code Administration Committee on the basis .i!:
volume of business and/or such other factors as may be deenaidi
equitable and pro rated among all members, subject to approval by
the Administrator. These funds shall be collected by and paid t1:
the Code Administration Committee or its duly constituted agency:
for that purpose. Such funds shall be deposited in a special accotiit:
and used only to defray the expense of administering this Cod&
under the direction of the Code Administration Committee. .
In voting for the Code Administration Committee each employ
in this Industry, complying with the above requirements, shall ha
one vote for each 5000 spindles or fraction thereof operated by hi)
and registered with the the Code Administration Committee.
(d) Each trade or industrial association directly or indirect
participating in the selection or activities of the Code Administ
tion Committee shall (1) impose no inequitable restrictions on m
bership, and (2) submit to the Administrator true copies of its
cles of association, by-laws, regulations, and any amendments
made thereto, together with such other information as to membi
ship, organization and activities as the Administrator may I1
necessary to effectuate the purposes of the Act.
4B'U y wan me provisions ot the Act, the Administrator may pre-
suh: .hearings as he may deem proper; and thereafter if he
find that the Code Administration Committee is not truly rep-
Simdatsve or does not in other respects comply with the provisions
,0:i ~fhe.Act, .may require an appropriate modification in the method
S ettioan of the Code Administration Committee.
o.thihng contained in'this Code shall constitute the members
~ Code Administration Committee partners for any purpose.
is... lit shall any member of the Code Administration Committee be
1:.". i. any manner to anyone for any act of any other member,
i lseri agent or employee of the Code Administration Committee.
?:4t: :" ill any member of the Code Administration Committee exer-
i... !g 'i: jg:: reasonable diligence in the conduct of his duties hereunder,
b liable to anyone for any action or omission to act under this Code,
rMe .*. pt for his own wilful misfeasance or non-feasance.
'i:"(g) If the Administrator shall determine that any action of the
:; ". :;Code Administration Committee or any agency thereof is unfair or
U.:. unjust or contrary to the public interest or to the Act, the Adminis-
t;frtt. r may require that such action be suspended to afford an op-
.portunity for investigation of the merits of such action and further
I fon; si~ ration by said Code Administration Committee or agency
i ::: di ngfinal action which shall not be effective unless the Adminis-
r:t:, or approves or unless he shall fail to disapprove after thirty
notice to him of intention to proceed with such action in its
S:ongnAl or modified form.
h: The Code Administration Committee shall have the following
::.... Powers and duties:
Si!1 ., To insure the execution of the provisions of this Code and to
providee subject to rules and regulations established by the Admin-
:ia tor, for the compliance of the industry with the provisions of
!ith Aczt; Provided, however, that, this shall not be construed to de-
ip .i~E duly .authorized governmental agencies of their power to
.a i.force the provisions of this Code or of the Act.
: (2): To adopt by-laws and rules and regulations for its procedure
Sand for the administration and enforcement of the Code.
(3) To use.such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
Sherein, provided that nothing herein shall relieve the Code Adminis-
traction Committee of its duties or responsibilities under this Code
Sa:..nd that such trade associations and agencies shall at all times be
i i subject to and comply with the provisions hereof.
(4) To secure from members of the Industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Administration Committee and its activities.
(5) To cooperate with the Administrator in regulating the use of
:. aiy National Recovery Administration Code Insignia solely by those
members of the industry who are complying with this Code.
-6) Based on conditions in the industry as they may develop, the
Cbde Administration Committee shall present to the Administrator
commendations which will tend to effectuate the operation of the
restore or amenu suen macnine nours. as may. irom isunaem
come necessary. This provision for flexibility is essecAij
Throwing Industry because it has no command over voift4
wholly dependent upon the demands and needs of the w r e
ting and allied trades. This provision shall not apply. li
machinery provided the yarn thrown -thereon is for te Sth i
own use only in their own plants, and operating u~der ti &
Fair Competition for the Cotton Textile Industry. ..i
No. 2. Recommendations that each employer who ma..i
purchase or build throwing machinery, and any individ.&i
portions desiring to establish plants of throwing .maebin
do so only after having procured from the Administratial
sion for such purchase or erection or for such establishment~ i
and the Code Administration Committee is hereby empo.wqq
as the agent of the Administration to receive application
permissions and to recommend the granting or witbh l"
and it shall be the duty of the Code Administration
such proceeding to furnish the National Recovery
with a full and duly authenticated statement of the fac.,
its recommendation is based. U I
No. 3. Recommendation by the Code Administrati
after study of the number of spindles to be operated b
on different classes of yarn upon the feasibility of es
ards, to be reported to the National Recovery Admii
Such recommendations, when approved by the
shall have the same force and effect.as any Qther.
this Code. .In
Approved Code No. 54-Amendment No. 2. :
Registry No. 274-1-01.
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