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Approved Code No. 282-Amendment No. 3
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 8, 1935
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Registry No. 1728-2-11
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Approved Code No. 282-Amendment No. 3
AMENDMENT TO CODE OF FAIR COMPETITION
As Approved on March 8, 1935
APPROVING AMENDMENT OF 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 an amendment
to a Code of Fair Competition for the Restaurant Industry, and an
opportunity to be heard having been duly afforded all interested
parties, and the annexed report on said ainendlment, containing find-
ings with respect thereto, having been made and directed to the
NOW, THEREFORE, on behalf of the President of the United
States, the National Indui-trial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including Ex-
ecutive Order No. 6859, dated SeptcmbeL r 27, 1934, and otherwise,
does hereby incorporate, by reference, said annexed report and does
find that said amendment 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
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 as amended.
NATIONAL INDUSTRI.\L RECOVERY BOARD,
By W. A. HARRIMAN, Adminzistrative Officer.
ARMIN W. RILEY,
Division A dmin 'i trat or.
WASHINGTON, D. C.,
March 8. 193- .
REPORT TO THE PRESIDENT
The Whitec Hoitse.
SIR: This is a report on an amendment, to the approved Code
of Fair Competition for the ReIstaurant Industry, number '22, which
was approved by you on February 16, 1934.
The Code Authority for tie Restaurant Industry, in accordance
with Subsection (d) of Section 1 of Article VIII of said code,
has made application for the amendment thereof in the following
1. To provide for the raising of funds to enable the Code Author-
ity to carry out its duties in administering the Code, by an equitable
method of contribution.
2. To relieve members of the Code Authority who exercise rea-
sonable diligence in the conduct of their duties, from liability for
any action taken in connection therewith except for their own wilful
malfeasance or non-feasance.
3. To change the word "Administrator wherever it appears in
the Code to the phrase National Industrial Recovery Board ", with
appropriate alterations in the pronduns referring thereto.
In accordance with customary procedure, every interested person
was afforded an opportunity to be heard on this amendment and all
statutory and regulatory requirements have been complied with.
The Deputy Administrator, in his final report to the National
Industrial Recovery Board on said amendment to said Code, having
found as herein set forth and on the basis of all the proceedings in
The National Industrial Recovery Board finds that.:
(a) The amendment 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 of labor and management under ade-
quate governmental sanction and superivsion, by eliminating unfair
competitive practices, by promoting the fullest possible utilization
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 un-
employment, by improving standards of labor, and by 4herwise
rehabilitating the Restaurant Industry.
(b) The Code as a lmended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion sub-section (a) of Section 3, sub-section (a) of Section 7 and
subsection (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment on behalf of the Industry as a whole.
(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) 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.
(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
(g) Said amendment is necessary in order to support the admin-
istration of this Code; to maintain standards of fair competition
established by this Code, and to effectuate the policies of the Act.
Said amendment was accordingly approved.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
Ad i/nr;ts i'atlve Offcer.
MARCH 8, 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE RESTAURANT INDUSTRY
Puir.-unt to Article VII, Section 1, Subsection (d), of the Code
of Fair Compeitition for the Restaurant Industry, as approved by
the President on February 16, 1934, and upon application therefore
by the National Restaurant Code Authority, a group truly repre-
sentative of the Industry, and in accordance with the provisions of
Title I of the National Industrial Recovery Act, and in order to
effectuate the policy of said Act, the following provisions are es-
tablished as an amendment to said Code of Fair Competition for
the Restaurant Industry for the establishment of fair trade prac-
tices within the industry on and after the effective date hereof.
AMENDMENT TO CODE
Amend Article VIII as follows:
Add the following additional sections:
SECTION 2. It being found necessary, in order to support the ad-
ministration of this Code and to maintain the standards of fair
competition established hereunder and to effectuate the policy of
the Act, the Code Authority is authorized:
(a) 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 Code;
(b) To submit to the National Industrial Recovery Board for
its approval, subject to such notice and opportunity to be heard
as it may deem necessary, (1) an itemized budget of its estimated
expen-e for the foregoing purpo-es, and (2) an equitable basis
upon which the funds necessary to support such budget shall be
contributed by members of the Industry;
(c) After such budget and basis of contribution have been ap-
proved by the National Industrial Recovery Board, to determine
and obtain equitable contribution as above set forth by all such
members of the Industry, and to that end, if necessary, to institute
legal proceedings therefore in its own name.
SECTION 3. Each member of the Industry shall pay his or its
equitable contribution to the expenses of the maintenance of the
Code Authority, determined as herein above provided, and subject
to rules and regulations pertaining thereto issued by the National
Industrial Recovery Board. Only members of the Industry com-
plying with the Code and contributing to the expenses of its admin-
istration as hereinabove provided, (unless duly exempted from mak-
ing such contributions), shall be entitled to participate in the selec-
tion 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 Recovery Administration.
SECTION 4. The Code Authority shall neither incur nor pay any
obligations substantially in excess of the amount thereof as esti-
mated in its approved budget, and shall in no event exceed the total
amount. contained in the approved budget, except upon approval
of the National Industrial Recovery Board; and no subsequent budget
shall contain any deficiency item for expenditures in excess of prior
budget estimates except those which the National Industrial Recovery
Board shall have so approved.
Amend present Sections 2 and 4 to renumber as Sections 5 and 6
respectively (old Section 3 having been heretofore deleted by
Amendment 2, approved Dec. 19, 1934).
Add new subsection (h) to Section 1;
Nothing contained in this Code shall constitute the members of
the Code Authority partners for any purpose. Nor shall any mem-
ber 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 hereunder, be liable
to anyone for any action or omission to act under this Code, except
for his own wilful malfeasance or non-feasance.
Amend the Code as follows:
Replace the word "Administrator ", wherever it appears through-
out the Code of Fair Competition for the Restaurant Industry, with
the words National Industrial Recovery Board and make the
appropriate grammatical revisions necessitated by this change.
Approved Code No. 282-Amendment No. 3.
Registry No. 1728-2-11.
UNIVERSITY OF FLORIDA
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