simW C'odeNo. 9-Amendment- o. 5
Registry No. 313-1-06
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
LUMBER AND TIMBER
AS APPROVED ON MARCH 23, 1934
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Approved Code No. 9-Amendment No. 5
AMENDMENT TO CODE OF FAIR COMPETITION
LUMBER AND TIMBER PRODUCTS INDUSTRY
As Approved on March 23, 1934
AMENDMENTS TO THE CODE OF FAIR COMPETITION FOR THE LUMBER
AND, TIMBER PRODUCTS INDUSTRY
An application having been made by the Lumber Code Authority
pursuant to and in full compliance with the provisions of Title I
of the National Industrial Recovery Act, approved June 16, 1933,
for amendment of the Code of Fair Competition for the Lumber
and Timber Products Industries, as heretofore approved by me,
and for the modification of my approval of said Code of Fair
Competition accordingly, and hearings having been held thereon,
and the Administrator having rendered his report recommending
the granting of such application, which carries out the forest con-
servation provisions of Article X of said Code:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report of the Administrator
recommending the granting of the aforesaid application, and do
order that the Code of Fair Competition for the Lumber and Timber
Products Industries, as approved by me on August 19, 1933, be
amended in accordance with the foregoing.
FRANKLIN D. ROOSEVELT.
HUGH S. JOHNSON,
THE W rrHE HOUSE,
March 3, 1934.
LETTER OF TRANSMITTAL
The White House.
SIR: Under the Code of Fair Competition for the Lumber and
Timber Products Industries, as approved by you on August 19,
1933, the Lumber Code Authority has submitted Amendments Nos.
47 and 48 which are included and attached.
This is a report of the hearing on the foregoing Amendments con-
ducted in Washington on February 26, 1934, in accordance with the
provisions of the National Industrial Recovery Act.
These Amendments recognize the obligation undertaken by the
applicant industries pursuant to Article X of the Code which
reads as follows:
"ARTICLE X. Conservation and Sustained Production of Forest
Resources.-The applicant industries undertake, in cooperation with
public and other agencies, to carry out such practicable measures
as may be necessary for the declared purposes of this Code in respect
of conservation and sustained production of forest resources. The
applicant industries shall forthwith request a conference with the
Secretary of Agriculture and such State and other public and other
agencies as he may designate. Said conference shall be requested to
make to the Secretary of Agriculture recommendations of public
measures with the request that he transmit them, with his recom-
mendations, to the President; and to make recommendations for
industrial action to the Authority, which shall promptly take such
action, and shall submit to the President such supplements to this
Code, as it determines to be necessary and feasible to give effect to
said declared purposes. Such supplements shall provide for the initi-
ation and administration of said measures necessary for the conserva-
tion and sustained production of forest resources, by the industries
within each Division, in cooperation with the appropriate State and
Federal authorities. To the extent that said conference may deter-
mine that said measures require the cooperation of federal, state,
or other public agencies, said measures may to that extent be made
contingent upon such cooperation of public agencies."
From the testimony taken at the hearing, it is apparent that these
Amendments represent a tremendous step toward the establishment
of effective mechanisms necessary to carrying out a successful pro-
gram of conservation and sustained production in one of the Nation's
most important natural resources. As you know so well, the means
of embarking on such a program has long been sought in this
Country, but the divergent interests involved, while seeking a com-
mon goal, defeated each other in its attainment by failing to recon-
cile their opinions in the matter of detail. In the light of this
knowledge, the unanimity of opinion supporting these proposals
revealed at the hearing can only be regarded as promising much in
future achievement. That this reconciliation has been possible is
undoubtedly due more to your interest and leadership than to any
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 are
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 ade-
quate governmental sanction and supervision, by eliminating unfair
competitive practices, by promoting the fullest possible utilization
of the present productive capacity of industries, by avoiding undue
restrictions of production (except as may be temporarily required),
by increasing the consumption of industrial and agricultural
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 per-
tinent provisions of said Title of said Act, including without
limitation 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 afore-
said Amendments on behalf of the industry as a whole.
(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
From evidence adduced during this hearing and from recommen-
dations and reports of the various Advisory Boards, it is believed
that these Amendments as now proposed and revised are satisfac-
tory to this industry, labor, public and this Administration. It is
recommended, therefore, that these Amendments, as herewith sub-
mitted be approved.
HUGH S. JOHNSON,
MaARC 21, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR THE
LUMBER AND TIMBER PRODUCTS INDUSTRY
Add the following new Schedule C to the Code of Fair Com-
petition for the Lumber and Timber Products Industries:
SCHEDULE C-FOREST CONSERVATION CODE
The following supplements to Article X provide for the initiation
and administration of measures necessary for the conservation and
sustained production of forest resources by persons within each Divi-
sion and Subdivision in cooperation with the appropriate State and
Federal Authorities, it being recognized that the extent to which
these undertakings by the lumber and timber products industries
are capable of successful accomplishment is dependent upon the
extent and character of public cooperation in each state.
SECTION 1. Each Division and each Subdivision having jurisdic-
tion over forest utilization operations shall establish or designate an
agency or agencies to formulate and from time to time to revise rules
of forest practice, and to exercise general supervision over the appli-
cation and enforcement thereof in the operations of the persons of
the respective Divisions and Subdivisions. Such agencies shall have
as non-voting, advisory members one representative of each of the
State and Federal organizations which have definite responsibility
under State and Federal laws for forestry or forest protection prac-
tice within the several Divisions and Subdivisions. Each Division
and each Subdivision shall provide such technical and other qualified
personnel as may be required to furnish necessary information to
said agencies and persons, to inspect the forest operations of said
persons, to enforce such rules of forest practice, and otherwise to
carry out the purposes of this Schedule, under the said general super-
vision of said agencies. On or before April 15, 1934, each such
agency shall formulate such rules of forest practice and shall submit
them through the appropriate channels to the Authority for its ap-
proval, provided, however, that prior to or at the time of the submis-
sion of such Rules of Forest Practice to the Authority for its
approval, such agency shall publish such rules in its Division or
Subdivision and shall take such steps as are reasonably calculated to
notify all affected parties of the provisions thereof and that objec-
tions to or criticism of such rules may be filed with it or the Authority
within fifteen days after the date of publication. After such ap-
proval the Authority shall publish separately for each Division and
Subdivision, and shall submit to the Administrator together with a
summary of objections filed, approved forest practice rules, which,
on and after June 1, 1934, unless prior to that date such rules shall
have been suspended or disapproved by the Administrator, shall be
obligatory for all persons subject to the jurisdiction of the said
Divisions and Subdivisions, respectively. Upon application by a
Division or Subdivision, or upon its own initiative to secure com-
pliance with this Schedule and equal application thereof without and
between the several Divisions and Subdivisions, the Authority may
amend such rules of forest practice; such amendments shall be pub-
lished by the Authority, together with a notice that objections to or
criticisms of such amendments may be filed with the Authority within
fifteen (15) days after the publication thereof and shall be submitted
to the Administrator, together with a summary of the objections and
criticisms filed with it, and shall be effective thirty days after the
date of such publication, unless prior to that date such amendments
shall have been suspended or disapproved by the Administrator.
SECTION 2. Said rules of forest practice, to insure the conservation
and sustained production of forest resources, shall include practicable
measures to be taken by the operators to safeguard timber and young
growing stock from injury by fire and other destructive forces, to
prevent damage to young trees during logging operations, to provide
for restocking the land after logging if sufficient advance growth
is not already present, and where feasible, to leave some portion of
merchantable timber (usually the less mature trees) as a basis for
growth and the next timber crop. Said rules of forest practice shall
be adequate to secure the purposes of this Schedule, and in a prac-
tical way in accordance with conditions existing in the respective
Divisions and Subdivisions shall secure application of the following
S(a) Fire protection during and immediately following logging is
an indispensable condition for forest regrowth. Responsibility for
adequate provision for control of fires during or immediately follow-
ing logging operations rests upon the individual operator if he is in
any way the cause of such fires. Each operator shall be definitely
responsible for taking practical measures of fire control. Such mens-
ures shall, to the extent, necessary to provide adequate protection,
include slash and snag disposal, rules as to use of fire by employees
including smoking in the woods, equipment of logging locomotives
and engines with adequate devices for preventing fires, having avail-
able upon call crews properly equipped to fight fires, closing opera-
tions during exceptionally dry periods, and other precautionary
measures. Where a general fire protection system is in effect, each
operator shall correlate his protection system with the general sys-
tem, but such general system shall not replace the protection system
of such operator, nor shall it relieve him of responsibility for pro-
tecting his own property to the extent that he has created the hazard.
He shall not be considered to be responsible for fire caused by public
carelessness or by inadequate public protection.
(b) To the end that protection against fire and other destructive
forces may be rapidly extended to all forest areas that require pro-
tection, said agencies shall endeavor to secure action on the part of
all operating forest land owners in the direction of cooperating with
public organizations in systematic fire prevention and suppression
and such protective action as may be practicable for protection
K against insects and diseases. Such agencies shall also seek to secure
such 'cooperation on the part of non-operating forest land owners.
(c) As much as practicable of the advance growing stock upon the
land in the form of young trees of valuable species below merchant-
able size shall be preserved during logging operations and left with-
out injury for future growth. Each operator shall require his
woods employees to exercise conscious care to reduce damage to
advance growth to the minimum practicable.
(d) To secure natural reproduction, which will usually be ob-
tained where partial cutting is practiced, there shall be left on the
logged areas, where economic and other conditions permit, a suffi-
cient number of trees of desirable species to yield a commercial cut
at reasonable intervals. Under certain conditions, instead of par-
tial cutting, the leaving of seed trees or groups of seed trees on or
adjacent to logged areas may be sufficient to insure the required re-
growth on the logged areas. If there is an insufficient reserve
stand, or if conditions are otherwise adverse and the prospects of
securing natural reseeding are uncertain, planting may be desirable.
(e) To the extent practicable, partial cutting or selective logging
shall be the general standard for local measures of forest practice.
Said agencies shall without delay, making use of existing informa-
tion, undertake to determine by regions or by forest types, the ex-
tent to which merchantable sizes of trees may wisely be left as part
of the forest growing stock. Upon satisfactory determination of
such conditions said agencies shall promptly establish standards of
practice looking to the attainment of this objective.
In certain regions or forest types, and under certain conditions
which do not justify partial cutting or selective logging, other
methods shall be allowed.
These rules of forest practice shall also apply to persons whose
operations are in timber held under lease" or timber cutting
rights" existing prior to the date of the President's approval of this
Schedule, provided that due consideration shall be given to the
ownership equities involved in order to avoid causing such persons
unreasonable hardship by requiring the leaving of trees of merchant-
(f) In order to provide flexibility, each operator shall be encour-
aged to communicate to his agency the methods which he proposes
as best suited in his individual operation to achieve the declared
objectives of conservation and sustained production of forest re-
sources, and if such proposed methods are determined by said
agency to equal or excel the regional or type standard methods,
they shall be approved in lieu thereof. This in effect permits modi-
fication of regional or type standards upon submission and approval
of specific individual management plans.
(g) Said agencies shall, each within its own jurisdiction, investi-
gate the feasibility of and shall actively encourage the application
of sustained yield forest management wherever feasible. Sustained
yield forest management is defined as management of specific forest
lands under single ownership or cooperative control within an eco-
nomic unit, under definite management plan which limits timber
cutting to the capacity of such forest lands under existing methods
of management, as determined from existing growing stock and
growth, to provide without interruption or substantial reduction raw
material for industry and community support.
(h) Schedule C and the rules of forest practice and any other
rules and regulations adopted pursuant thereto, being adopted in
order to give effect in the public interest to the declared purposes
of Article X may be enforced only by the United States through its
appropriate enforcement agencies or officers. Nothing contained in
this Schedule, or in the rules of forest practice or in any other rule
or regulation adopted pursuant thereto, shall be construed to enlarge,
increase, change or affect the legal duty, liability or responsibility
of any person subject to the jurisdiction of this code to any other
person, firm or corporation, whether or not the latter is subject to
the jurisdiction of this Code, or to give to any such person, firm or
corporation any right of action against any person subject to the
jurisdiction of this code which would not have existed if this Sched-
ule had not been adopted.
Amend Article VIII (k) by adding the following new paragraph
at the end thereof:
"Pursuant to the foregoing each eligible person who makes appli-
cation to be recognized as securing his raw material supply from
forest lands under his ownership or control which are managed on
a sustained yield basis, and who secures from his Division or Sub-
division agency established or designated as provided in Section 1
of Schedule C a certificate showing that he is in good faith con-
ducting his operation upon such basis, shall have his production
allotments, as determined without the benefit of this paragraph,
increased by 10 per cent. If only part of his raw material supply
comes from such sustained yield operation, his increased allotment
shall be that proportion of 10 per cent which the volume of his raw
material coming from such sustained yield operation is of his total
volume. Sustained yield forest management is defined in Sec-
tion 2 (g) of Schedule C. The additional production allotments
provided for in this paragraph shall come from the total national
Approved Code No. 9. Amendment No. 5.
Registry No. 313-1-06.
UNIVERSITY OF FLORIDA
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