C-iode No. 130-Amendment No. 2
Registry No. 1215--06
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 7, 1935
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Approved Code No. 130-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
PRECIOUS JEWELRY PRODUCING INDUSTRY
As Approved on March 7, 1935
S APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
PRECIOUS JEWELRY 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 Precious Jewelry Pro-
ducing Industry, said amendment being to eliminate Subsection (c)
of Section 1 of Schedule A of said Code, and hearings having been
duly held thereon and the annexed report on said amendment, con-
taining 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 said Board by Executive Orders of the President, in-
cluding Executive Order No. 6859, dated September 27, 1934, and
otherwise; does hereby incorporate, by reference, said annexed re-
port and does find that said amendment 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 does hereby order that said amendment be and it is
hereby approved, and that the previous approval of said Code is
hereby modified to include an approval of said Code in its entirety
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Officer.
JOHN W. UPP,
Acting Division Administrator.
WASHINTONw, D. C.,
March 7, 1935.
REPORT TO THE PRESIDENT
The White House.
SIR: A Public Hearing on the amendment to the Code of Fair Com-
petition for the Precious Jewelry Producing Industry, submitted by
the Schoenthaler-Green-Ellbogen-Wood Committee, representing 57
manufacturers of fraternity jewelry out of a possible 100 concerns
manufacturing fraternity jewelry, was conducted in Washington on
April 26, 1934, in accordance with the provisions of the National
Industrial Recovery Act.
The above concerns filed a petition with the Administration stating
that sub-section (c) of Section 1 of Schedule A of the Code of Fair
Competition for the Precious Jewelry Producing Industry was dis-
criminatory in its effect upon the majority of concerns producing
fraternity jewelry. Evidence was presented by all interested parties
including representatives of many fraternities.
It has been stated that the elimination of this clause would put the
Administration on record as not sanctioning the contracts already
existing, as the clause in its present form appears to offer even more
protection than the contracts themselves. The validity or invalidity
of these contracts is not the point at issue.
The following facts have been developed:
(1) Five hundred and thirty four (534) contracts, which represent
85 percent of the outstanding number of contracts, are held by one
member of the Industry.
(2) These contracts are executed by one concern and its subsidiaries.
(3) This one firm is one of the very few firms interested in the
retention of this clause in the Code. Other interested parties are
the fraternities, representing the consumer interests in this matter,
who see a way other than through ordinary legal proceedings of
protecting the sale of their insignia.
(4) The actual operation of this clause tends to extend monopoly
rights beyond the period granted the owner of an original design
by patent law and to extend to fraternities who hold contracts, priv-
ileges which they cannot secure under present Patent Laws.
(5) The absence of this clause in the Code does not abrogate out-
standing contracts, nor permit interference with them.
(6) There is no objection to the fraternities making contracts with
a single manufacturer. There is, however, no logical reason for giv-
ing the Code Authority the task of enforcing such contracts by re-
quiring that they report a member of the industry for violation of
the Code for manufacturing insignia, which, were it not for this pro-
vision in the Code, he would have a legal right to do.
(7) Our conclusion in this matter is that the injury possible to a
large number of members of the industry far outweighs the good
done for the fraternities by retaining this paragraph in the Code.
The Deputy Administrator in his final report on said amendment
to said Code having found as herein set forth and on the basis of
all the proceedings in this matter:
It is found that:
(a) The amendment of 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 obstruc-
tions 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 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 the industries, by avoiding undue
restrictions 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 relieving
unemployment, by improving standards of labor, and by otherwise
(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 group was and is an industrial group truly representative
of the manufacturers operating under Schedule A of the Code for
the Industry and that said group imposed and imposes no inequitable
restrictions on admission to membership therein and has applied for
(d) 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.
(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 amendments and modifications.
For these reasons the amendment has been approved.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
AMENDMENT TO CODE OF FAIR COMPETITION FOR THE
PRECIOUS JEWELRY PRODUCING INDUSTRY
Delete the following subsection (c), Section 1, Schedule A:
"(c) Where a fraternity controls the manufacture and distribu-
tion of its insignia under contract, it is an unfair trade practice for
unauthorized persons to manufacture, solicit, or accept orders for
Approved Code No. 130-Amendment No. 2.
Registry No. 1215-06.
UNIVERSITY OF FLORIDA
3IIIIRII II 1262 085
3 1262 08582 8440