Approved Code No. 330-Supplement No. 1 Registry No. 1632-31
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WASTE PAPER TRADE
(A Division of the Scrap Iron, Nonferrous
Scrap Metals, and Waste Materials Trade)
AS APPROVED ON JULY 12, 1934
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Registry No. 1632-31
Approved Code TNo. 330-Supplement No. 1
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Approved Code No. 330-Supplement No. 1
SUPPLEMENTARY CODE OF FAIR COMPETITION
WASTE PAPER TRADE
As Approved on July 12, 1934
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WASTE PAPER
A DIVISION OF THE SCRAP IRON, NONFERROUS SCRAP METALS AND WASTE
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 Supple-
mental Code of Fair Competition for the Waste Paper Trade to the
Code of Fair Competition for the Scrap Iron, Nonferrous Scrap
Metals and Waste Materials Trade, and hearings having been duly
held thereon and the annexed report on said Supplemental Code
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 annexed
report and do find that said Supplemental Code complies in al
respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that said
Supplemental Code of Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
R. L. HOUSTON,
July 12, 1934.
REPORT TO THE PRESIDENT*
The White House.
SIn: The Hearing on the Supplemental Code of Fair Competi-
tion for the Waste Paper Trade,.a division of the Scrap Iron, Non-
ferrous Scrap Metals and Waste Materials Trade, was held in the
Willard Room of the Willard Hotel on May 14, 1934. The Sup-
plemental Code which is attached was presented by the Code Au-
thority in accordance with your Executive Order of March 12, 1934,
approving the Code for the Scrap Iron, Nonferrous Scrap Metals
and Waste Materials Trade.
In accordance with the customary procedure everyone present
who had filed a request for an appearance was freely heard in pub-
lic, and all statutory and regulatory requirements were complied
with. Provisions of the Supplemental Code were approved by the
Industrial Advisory Board, Labor Advisory Board, the Legal Divi-
sion, and the Division of Research and Planning.
CONDITIONS IN THE TRADE
The Trade consists of some 5,000 dealers engaged in supplying
various grades of waste paper chiefly to paperboard mills. The
consumption of waste paper varies with the seasonal demand for
paperboard, which usually reaches a peak in March or April and
again in October.
During the present off-season in this line of Trade, it is believed
that this Supplemental Code may provide means to stabilize con-
ditions in such cases where destructive price cutting has brought
about unfair competition.
The Deputy Administrator in his final report to me on said Sup-
plemental Code having found as herein set forth and on the basis
of all the proceedings in this matter;
I find that-
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of inter-
state and foreign commerce which tend to diminish the amount
thereof, and will provide for the general welfare by promoting the
organization of trade for the purpose of cooperative action among
the trade groups, by inducing and maintaining united action of
labor and management under adequate governmental sanction and
supervision, by eliminating unfair competitive practices, by promot-
ing the fullest possible use of the present productive capacity of
industries, by avoiding undue restriction 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 Supplemental Code as approved complies in all respects
with the pertinent 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) Your Executive Order of March 12, 1934, approving the Code
of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals
and Waste Materials Trade empowers the Code Authority for the
" Waste Paper Trade" to present the aforesaid Supplemental Code
on behalf of the Trade as a whole.
(d) The Supplemental Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate or oppress small enterprises and will not operate to discriminate
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to the approval of
this Supplemental Code.
For these reasons the Supplemental Code has been approved.
HuaH S. JOHNsoN,
JULY 12, 1934.
"* .. ....
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WASTE PAPER TRADE
A DIVISION OF THE SCRAP IRON, NONFERROUS SCRAP METALS AND WASTE
To effectuate the policies of Title I of the National Industrial
Recovery Act, this Supplemental Code is established as a Code of
Fair Competition for the Waste Paper Trade pursuant to the Execu-
tive Order of March 12, 1934, approving the Code of Fair Competi-
tion for the Scrap Iron, Nonferrous Scrap Metals and Waste Mate-
rials Trade. All provisions of the Code of Fair Competition for
the Scrap Iron, Nonferrous Scrap Metals and Waste Materials
Trade, which are not in conflict with the provisions of this Supple-
mental Code, are hereby incorporated by reference in this Supple-
mental Code and made a part hereof. Such provisions of the Code
of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals
and Waste Materials Trade, together with the supplementing provi-
sions of this Code, are the standards of fair competition for and are
binding upon every member of the Waste Paper Trade.
SECTION 1. The Code Authority may delegate any of its powers
to such regional or subsidiary committees as it may deem necessary;
each such committee to be representative of the several groups com-
prising the Waste Paper Trade in its region or division.
SCTION 2. The Code Authority shall appoint a committee to make
recommendations to the Administrator for the coordination of the
Administration of this Supplementary Code with such other Codes
as may be related to or affect the members of this Trade.
SEcTIoN 3. The Code Authority shall have the following powers
and duties to the extent permitted by the Act:
(a) Each member of the Trade shall keep accurate and complete
records of its transactions in the Trade whenever such records may
be required under any of the provisions of this Supplemental Code,
and shall furnish accurate reports based upon such records concern-
ing any of these activities when required by the Code Authority or
the Administrator. If the Code Authority or the Administrator
shall determine that substantial doubt exists as to the accuracy of
any such report, so much of the pertinent books, records and papers
of such member as may be required for the verification of such report
may be examined by an impartial agency, agreed upon between the
Coae Authority and such member, or in the absence of agreement,
appointed by the Administrator. In no case shall the facts dis-
closed by such examinations be made available in identifiable form
to any competitor, whether on the Code Authority or otherwise, or
be given any other publication, except such as may be required for
the proper administration or enforcement of the provisions of this
In addition to information required to be submitted to the Code
Authority, members of the Trade subject to this Supplemental Code
shall furnish such statistical information as the Administrator may
deem necessary for the purposes recited in Section 3 (a) of the Act
to such federal and state agencies as he may designate; provided that
nothing in this Supplemental Code shall relieve any member of the
Trade of any existing obligations to furnish reports to any govern-
(b) To investigate, subject to such rules and regulations as the
Administrator may prescribe, alleged violations of the provisions of
this Supplemental Code and require any members of the Trade to
furnish reports pertinent to any complaint against such member.
(c) To describe and define the various grades and types of waste
paper for the purpose of this Supplemental Code subject to the
approval of the Administrator. Immediately after approval by the
Administrator, the Code Authority shall distribute such determina-
tions among the members of the Waste Paper Trade.
SECTION 4. (a) It being found necessary in order to support the
administration of this Supplemental Code and to maintain the
standards of fair competition established hereunder and to effectuate
the policy of the Act, the Code Authority is authorized:
(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Supplemental Code.
(2) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary,
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
(3) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable con-
tribution as above set forth by all members of the Trade, and to
that end, if necessary, to institute legal proceedings therefore in its
(b) Each member of the Trade shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regu-
lations pertaining thereto issued by the Administrator. Only mem-
bers of the Trade complying with the Supplemental Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided, shall be entitled to participate in the selection of members of
the Code Authority or to receive the benefits of any of its voluntary
activities or to make use of any emblem or insignia of the National
(c) The Code Authority shall neither incur nor pay any obliga-
tion in excess of the amount thereof as estimated in its approved
budget, except upon approval of the Administrator; and no subse-
quent budget shall contain any deficiency item for expenditures in
excess of prior budget estimates except those which the Administrator
shall have so approved.
ARTICLE III-TRADE PRACTICES
SECTION 1. No member of the Waste Paper Trade shall designate
the various types and grades of waste paper in any other manner than
the manner determined by the Code Authority under Article II, Sec-
tion 3 (d) above.
SECTION 2. No member of the Waste Paper Trade shall employ any
subterfuge, to avoid or attempt to avoid the provisions of this Code
or the purposes and intent of the National Industrial Recovery Act.
ARTICLE IV-EMERGENCY PROVISIONS
SECTION 1. If the Administrator, after investigation shall at any
time find both (1) that an emergency has arisen within the Trade
adversely affecting small enterprises or wages or labor conditions,
or tending toward monopoly or other acute conditions which tend to
defeat the purposes of the Act; and (2) that the determination of
the stated minimum price for a specified product within the Trade
for a limited period is necessary to mitigate the conditions constitut-
ing such emergency and to effectuate the purposes of the Act, the
Code Authority may cause an impartial agency to investigate costs
and to recommend to the Administrator a determination of the stated
minimum price of the product affected by the emergency and there-
upon the Administrator may proceed to determine such stated min-
SECTION 2. When the Administrator shall have determined such
stated minimum price for a specified product for a stated period,
which price shall be reasonable calculated to mitigate the conditions
of such emergency and to effectuate the purposes of the National
Industrial Recovery Act, he shall publish such price. Thereafter,
during such stated period, no member of the Trade shall sell such
specified products at a net realized price below said stated minimum
price and any such sale shall be deemed destructive price cutting.
From time to time, the Code Authority may recommend review or
reconsideration or the Administrator may cause any determinations
hereunder to be reviewed or reconsidered and appropriate action
ARTICEI V-CosT ACCOUNTING
The Code Authority shall cause to be formulated methods of cost
finding and accounting capable of use by all members of the Trade
and shall submit such methods to the Administrator for review. I
approved by the Administrator, full information concerning such
methods shall be made available to all members of the Trade. There-
after, each member of the Trade shall utilize such methods to the
extent found practicable. Nothing herein contained shall be con-
strued to permit the Code Authority, any agent thereof, or any mem-
ber of the Trade to suggest uniform additions, percentages of differ-
entials, or other uniform items of cost which are designed to bring
about arbitrary uniformity of costs or prices.
SECTION 1. This Code and all the provisions thereof are expressly
,made subject to the right of the President in accordance with the
provisions of Sub-Section 10 (b) of the Act, from time to time to
cancel or modify any order, approval, license, rule or regulation is-
sued under Title I of said Act.
SECTION 2. Such other provisions of this Supplemental Code as
are not required to be included herein by the Act may, with the ap-
proval of the Administrator, be modified or eliminated in such man-
ner as may be indicated by the needs of the public, by changes in
circumstances, or by experience. All the provisions of this Supple-
mental Code, unless so modified or eliminated, shall remain in effect
until June 16, 1935.
No provision of this Supplemental Code shall be so applied as to
permit monopolies or monopolistic practices, or to eliminate, op-
press or discriminate against small enterprises.
ARTICLE VIII-EFFECTIE DATE
This Supplemental Code shall become effective immediately upon
its approval by the Administrator.
Approved Code No. 330-Supplement No. 1.
Registry No. 1632-31.
UNIVERSITY OF FLORIDA
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