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... Registry No. 259-01
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CODEl OF FAIR COMPETITION
-' FOR THE
N mAND SYNTHETIC YARN
4 IROD1uCING INDUSTRY
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SAS APPROVED ON MARCH 28, 1934
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UNIT ED STATES
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This publication is for sale by the Superintendent of Documents, Govena=leX,
Printing Office, Washington, D.C., and by district offices of the Bureau oft"
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMLRCB '
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Houston, Tex.: Chamber of Commerce Building.
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S' '$n FrFapqicp, Calif.: o10 Customhouse.
Seattle, Wasin. 809 Federal Office Building.
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l... Approved Code No. 14-Amendment No. 1
S::- AMENDMENT TO CODE OF FAIR COMPETITION
RAYON AND SYNTHETIC YARN PRODUCING
As Approved on March 28, 1934
AMENDMENT TO CODE OF FAIR COMPETITION FOR THE RAYON AND
SYNTHETIC YARN PRODUCING INDUSTRY
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 the approval of amend-
Sments to a Code of Fair Competition for the Rayon and Synthetic
Y arn Producing Industry, and the annexed report on said amend-
ments, containing findings with respect thereto, having been made
and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
,S.: States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
Spursuant 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-
:1 nexed report, and do find that said amendments 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 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.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
F Approval recommended:
A. D. WHITESIDE,
: MARC .28, 1934.
The White House.
SI: This is a report on the results of the Notice of Opportunity
to File Objections to Amendments to The Rayon and Synthetic YTamp
Producing Industry Code, which was'published on March 5, 193
with the provision that objections against the Proposed Amend-
ments could be filed anytime prior to March 15, 1934. The Amend- j
ments, which are attached, were presented by duly qualified andi
authorized representatives of the Industry complying with statutory,:.i
requirements and being the same agency that originally submitted' I
the Code. i
In accordance with customary procedure, all complaints received::.
were given careful consideration and all statutory and regulatory
requirements were complied with.
PROVISIONS OF THE AMENDMENTS
There are two Amendments as follows:
1. The first Amendment proposed is an Amendment for the pur-
pose of clarifying the definition of the Industry and for the purpose
of definitely including producers of Cellulose Acetate Yarn in the
2. An Amendment setting up Administrative provisions in the
Code so that the Industry can provide itself with a Legally eoni-
stituted and effective Code Authority for administration of the Code
The Deputy 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 proceedings in this matter:
I find that:
(a) The Amendments to said Code and the Code as amended a"re"I
well designed to promote the policies and purposes of Title I of the -S
National Industrial Recovery Act including the removal of obstruc- -i
tion to the free flow of interstate and foreign commerce which tend ii'
to diminish the amount thereof, and will provide for the general i'
welfare by promoting the organization of Industry for the purp.iose i,
of cooperative action among trade groups, by inducing and mainm-
taining united action of labor and management under adequate got-.I;
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the i
present productive capacity of industries, by avoiding undue re-
stri6tion of production (except as may be temporarily required), by ::;
increasing the consumption of industrial and agricultural products!
i't.o.ugh increasing purchasing power, by reducing and relieving un-
Ai :ii:iployment, by improving standards of labor, and by otherwise
: (b) The Code as Amended complies in all respects with the perti-
i'nent provisions of said Title of said Act, including without limita-
!ti'Bon Subsection (a) of Section 3, Subsection (a) of Section 7, and
sectionctin (b) of Section 10 thereof.
: (c) The Rayon and Synthetic Yarn Producer's group, which con-
Isists of one member from each unit in the Industry, is truly repre-
..sentative of the Industry and has applied for or consents to these
S (d) The Amendments and the Code as Amended are not designed
0i tb and will not permit monopolies or monopolistic practices.
.' (e) The Amendments and the Code as Amended are not designed
i, to and will not eliminate or oppress small enterprises and will not
discriminate against them.
S 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 these Amendments have been approved.
.. HUGH S. JOHNSON,
MARcn 28, 1934.
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AMENDMENT TO CODE OF FAIR COMPETITION T
THE RAYON AND SYNTHETIC YARN PRODU
Amend Article II to read as follows:
1. The term "rayon and synthetic yarn producing industry:: ''.as
used herein is defined to mean the manufacture of rayon and/ tIIJ
synthetic yarns from cellulose and/or cellulose acetate put up: and i
packaged in forms suitable for the various consuming and fabri-
cating branches of the textile industry.
2. The term member of the industry as used herein means and :
includes but without limitation any individual, partnership, asso-
ciation, corporation, or other form of enterprise engaged m the;!
industry as defined herein.
Amend Article VIII by adding to the wording now appearing in
the Code so that the completed Article will read as follows:
1. The industry shall set up within itself an agency to cooperate"
with the Administrator in the administration and enforcement of-:::
2. A Code Authority is hereby constituted to cooperate with. %Wh i;i
Administrator in the administration of this Code. The Code Atl'::
thority shall consist of as many persons as there are members. of":
the Industry, to be selected in the following manner; each meniberJl
of the industry shall select one representative who shall be a mei i":er:
of the Code Authority. In addition to membership as provi ,
there may be not more than three (3) members appointed by the "'
Administrator to serve without vote and without expense to the '
3. In order that the Code Authority shall at' all times be truly .,,:
representative of the industry and in other respects comply with th. i..
provisions of the Act, the Administrator may prescribe such hear :':
as he may deem proper; and thereafter if he shall find that the C
Authority is not truly representative or does not in other
comply with the provisions of the Act may require an approt
modification in the method of selection of the Code Authority. i:i:
4. Members of the industry shall be entitled to participate i4t
share the benefits of the activities of the Code Authority .,A.n
participate in the selection of the members thereof by, asset
to and complying with the requirements of this Code and sa
ing their reasonable share of the expense of 'its adminis
"i -Z: j
:,:i"ch reasonable share of the expenses of administration shall be
:: rnpined by the Code Authority subject to review by the Admin-
:jstrator on the basis of volume of business and/or such other factors
Was may be deemed equitable.
: Nothing contained in this Code shall constitute the members
Sf, the Code Authority partners for any purpose. Nor shall any
members of the Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent or employee of the
Code Authority. Nor shall any member of the Code Authority,
exercising. reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own wilful misfeasance or malfeasance.
6. The Code Authority shall have the following further powers
(a) To undertake the execution of the provisions of this Code
'- and to provide for the compliance of the industry with the pro-
visions of this Code, and the By-Laws of the Code Authority, and
the Act in accordance with such regulations as may be prescribed
by the Administrator;
:(b) To adopt By-Laws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
The method of voting to be followed at all meetings of the Code
Authority shall be as follows: all determinations of the Code Au-
thority shall be made by the affirmative vote of a majority of the
Code Authority (or by duly-qualified alternates of individual mem-
bers of the Code Authority). A majority of the Code Authority
is defined to mean a majority in number which also represents at
least fifty per cent of the productive capacity of the industry.
"Productive capacity" for the purposes of this section shall be
the ;productive capacity in pounds of one hundred and fifty (150)
denier yarn, to be computed every three (3) months according to a
method to be determined by the Code Authority, subject to the
disapproval of the Administrator.
(c) To request and receive from members of the Industry such
information and reports as are required for the administration of the
S Colde. In addition to information which may be required to be
si: bmitted by the Code Authority, all or any of the persons subject
!. t0 this Code shall furnish such statistical information as the Ad-
ministrator may deem necessary for the purposes recited in Section
..(,%a) of the Act to such Federal and State agencies as the Adminis-
trator may designate; nor shall anything in any Code relieve any
S person of existing.. obligations to furnish reports to Government
I,. agencies. No individual reports shall be disclosed to any other mem-
i: ber.of the Industry or any other party except to such governmental
Agencies as may be directed by the Administrator.
All reports, statistics and information required for the Administra-
tion of this Code by the Code Authority shall be transmitted to the
offices of the Secretary of the Code Authority, or other impartial
agency designated by the Code Authority, and such reports and in-
formation shall be kept confidential. No publication thereof in any
i' anier shall be made to anyone other than in combination with
similar information to be furnished by other members of the indus-
: try, provided that identification if individual reports shall be re-
S :: "- UNIVERSITY OF FLORIDA
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6 3 1262 08482 8143
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moved, and that all records and data of the C
made available to the Administrator or hisl
The type of reports, statistics and othf mnfo
requested by the Code Authority of members.-,:dtof.
be subject to the approval of the Administrato r.: .........i:....
(d) To make recommendations to the A ii:
dination of the administration of this O:ode.g.~ iCi
if any, as may be related to the industry.-' .
(e) To secure from members of the industt .. ".'.
proportionate payment of the reasonable epexnse':'
the Code Authority and its activities.. 6; :i
(f) To cooperate with the Administrator in reglti
of any N.R.A. insignia solely by those members ot1 tl:
who have assented to, and are complying with, this Cod..
(g) To recommend to the Admmistrator addition ae.
amendments or modifications of this Code provided-:.h
recommendations be submitted first .to members of thd. .
their approval and provided that no recommendation i^ to
alteration, amendment, or modification of this C.ode- .:o.'
Authority rules or regulations promulgaiid under this"-
be made which binds any of the divisions of this indus
viscose, acetate, nitrocellulose and/or cupranmmoniiw
the approval of that division. Approval of a. division I'
to mean approval by a majority in number of that dili
also represents at least fifty percent of the productive _ca
hereinabove defined) of that division. All piropoas for
alterations, amendments or modifications of this Code~
members of the industry may be submitted in the first
the Code Authority for its consideration and for recoin:
to the Administrator.
7. If the Administrator shall determine that any aetio
Authority or any agency thereof miay be unfair or .unj..us
trary to the public interest, the Administrator may. eq.U
action be suspended to afford an opportunity for invest
merits of such action and further consideration by stl
thority or agency pending final action which shalll. not b
unless the Administrator approves or unless he shalt C".I
prove after thirty days' notice to him of: intentiohn.to:,:
such action in its original or modified form. .:ni.
8. Any member of this industry shall have the riMght
the Administrator, under such rules and regulations: s
scribe, in respect to. any rule, regulation, or other oi$
issued or taken by the Code Authority. No'n of.'
authorities vested by this Code in the Rayon and.
Code Authority in respect of the operations, of me
and Synthetic Yarn Producing Industry sh allb be
such manner as to preclude an appropriate revie.".4
Approved Code No. 14-Amendment No. 1. :
Registry No. 259-01.