NATIONAL RECOVERY ADMINISTRATION
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CODE OF FAIR COMPETITION
AS APPROVED ON FEBRUARY 2, 1934
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SApproved Code No. 54-Amendment No. 1
CODE OF FAIR COMPETITION
As Approved on February 2, 1934
APPROVING AMENDMENTS TO THE 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 a Code of Fair Competition for the Throwing Industry, and hear-
ings having been duly held thereon and the annexed report on said
amendments, containing findings with respect theret6, 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-
Snexed report and do find that said amendments and the Code as
constituted after being amended comply in all respects with the perti-
nent provisions 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; provided, however, that the provisions of Sec-
tion 3 (e) insofar as they prescribe a waiting period between the
filing with the Code Authority and the effective date of revised price
lists or revised terms and conditions of sale be and they are hereby
stayed pending my further order either within a period of 60 days
from the effective date of this Code or after the completion of a
study of open price associations now being conducted by the National
This order shall become effective ten (10) days after the date
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. D. WHITESIDE,
February 2, 1934.
37666"- ---313-1090-34 (1)
REPORT TO THE PRESIDENT
The White House.
SIR: This report concerns the amendments to the Code of Fair
Competition for the Throwing Industry which were submitted by
the Code Administration Committee of that Industry.
The hearing was conducted in Washington, D.C., on January 4,
1934. Every person who requested an appearance was freely heard
in accordance with statutory and regulatory requirements.
RESUME OF AMENDMENTS
The amendments may be classified under four general headings;
restriction against selling below cost, open listing of prices, prohibi-
tion against commercial bribery, and the secret payment of refunds
These provisions do not apply to employers throwing materials
for their own use only in their own plants. In other words, only
commission throwing will be governed by these amendments.
The Deputy Administrator in his final report to me on said
amendments to said Code having found as herein set forth and on
the basis of all the proceedings in this matter:
I find that:
(a) The amendments to said Code and the Code as amended is
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 among trade groups, by inducing
and maintaining united action of labor and management under
adequate governmental sanction and supervision, by eliminating
unfair competitive practices, by promoting the fullest possible utili-
zation of the present productive capacity of industries, by avoiding
undue restriction of production (except as may be temporarily re-
quired), by increasing the consumption of industrial and agricul- .
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise 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 Sub.ection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The Throwsters Research Institute was and is an industrial
association truly representative of the aforesaid Industry and that
said association imposed and imposes no inequitable restrictions on
Admission to membership therein and has applied for or consents to
(d) The amendments and the Code as amended are not designed
to and will not, permit monopolies or monopolistic practices.
(e) The amendments 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 of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, the amendments have been approved.
HUGH S. JOHNSON,
FEBRUARY 2, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE THROWING INDUSTRY
Pursuant to the provisions of Section 6 of the Code of Fair Compe-
tition for the Throwing Industry, said Code is hereby amended by
adding at the end of Section 3 the following paragraphs:
(d) Effective ten days after the approval by the Administrator of
a standard and uniform method of costing formulated by the Code
Administration Committee in accordance with subsection (b) of this
Section, no employer shall sell the products or services of the In-
dustry at such prices or upon such terms and conditions of sale as
will result in the purchaser's paying for such product or services less
than the cost thereof to the seller, as determined in accordance with
said standard and uniform method of costing, except to meet the
competition of listed prices. The provisions of this subsection (d)
shall not apply to employers throwing materials for their own use
only in their own plants.
(e) Within ten days after the approval by the Administrator of
said standard and uniform method of costing, each employer shall
file with the Code Administration Committee, on a printed form to
be furnished by the Code Administration Committee, and publish to
the trade, prices for each of the products or services of the industry
sold or usually offered for sale by him based on a net cash, f.o.b.
his mill basis, and he shall include in addition any yarns not listed
that he may be producing or contemplate producing. After filing
a price list each employer shall thereafter file with the Code Admin-
istration Committee on the day quoted, the price of any yarns not
previously listed by him. Any change in prices previously filed
must be filed from time to time thereafter by each employer and
such revision if downward shall be filed with the Code Administra-
tion Committee five days in advance of the day on which business
is taken at. the lower price.
Immediately upon receipt of a revision from any employer, the
Secretary of the Code Administration Committee shall notify all
employers of the receipt of such notice stating the price if such price
is lower or higher than the lowest price previously filed by the
industry. Information embodied in any list or revision filed under
this provision shall be immediately available to any employer upon
application to the Secretary of the Code Administration Committee.
No employer shall sell or offer for sale any products or services
of the industry at prices lower than, or on terms and conditions
of sale more favorable than, those filed with the Code Administra-
tion Committee in accordance with the foregoing provisions.
The provisions of this subsection (e) shall not apply to employers
throwing materials for their own use only in their own plants.*
(f) No employer shall give, permit to be given, or directly offer
to give, anything of value for the purpose of influencing or reward-
See paragraph 2 of Order approving this amendment.
ing the action of any employee, agent, or representative of another
in relation to the business of the employer of such employee, the
principle of such agent, or the represented party, without the knowl-
edge of such employer, principal, or party. This provision shall
not be construed to prohibit free and general distribution of articles
commonly used for advertising except so far as such articles are
actually used for commercial bribery as hereinabove defined. The
provisions of this subsection (f ) shall not apply to employers throw-
ing materials for their own use only in their own plants.
(g) No employer shall make or cause to be made secret payment or
allowance of rebates, refunds, commissions, or unearned discounts,
whether in the form of money or otherwise, or secretly extend to
certain purchasers special services or privileges not extended to all
purchasers under like terms and conditions. The provisions of this
subsection (g) shall not apply to employers throwing materials for
their own use only in their own plants.
Approved Code No. 54-Amendment No. 1.
Registry No. 274-1-01.