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Approved Code No. 327-Amendment No. 2
Registry No. 1399-
Registry No. 1399-41
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AND STAPLING MACHINE
AS APPROVED ON NOVEMBER 22, 1934
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Approved Code No. 327-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
MACHINE-APPLIED STAPLE AND STAPLING
As Approved on November 22, 1934
APPROVING AMENDMENT OF CODE OF. FAIR COMPETITION FOR THE
iLACL-IN E-APPLIED STAPLE AND STAPLING MACHINE INDUSTRY
An application having been duly made pursunnt 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 amend-
ment to a Code of Fair Comlpetition for the Machine-Applied
Staple and Stapling Machine Industry, and a Notice of Opportunity
to be Heard having been duly given thereon, and the annexed report
on said amendment, containing 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 au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, 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 INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Admin;.i'tratice Officcr.
Acting D;risi.oi A dmin i;strator.
WASHINGTON, D. C.,
November 22, 1934.
98971 --1325-79---34 (11
REPORT TO THE PRESIDENT
The White Howse.
Sin: An application has been duly made pursuant to and in full
compliance with the provisions of the National Industrial Recovery
Act for an amendment of Article VI of the Code of Fair Competi-
tion for the Machine-Applied Staple and Stapling Machine Industry
by the Code Authority for that Industry.
The Code of Fair Competition for the Machine-Applied Staple
and Stapling Machine Industry was approved on March 10, 1934.
Article VI, Section 4, provides that the Code Authority shall secure
from the Imembers of the Industry an equitable and prol)ortionate
payment of the reasonable expenses of maintaining the Code Author-
ity and its activities.
The above in effect provides for voluntary contributions on the
part of the members of the Industry. This method of providing
funds for the proper administration of the Code has been found to
be unsatisfactory. The amendment has, therefore, been proposed
to create a legal obligation, on the part of the Industry Members,
to pay their pro rata share of the expenses of the Code Authority.
The Deputy Admini.strator in his final report to the National
Industrial Recovery Board on said amendment of said Code having
found as herein set forth and on the basis of all proceedings in this
It has been 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 ob-
tructiins to the free flow of interstate and foreign commerce which
tend to diminish the amount thereof, and will provide for the gen-
eral welfare by priomioting the organization of industry for the pur-
pose of cooperative action of labor and management under adequate
governmental sanction and supervision, by eliminating unfair com-
petitive practices, by promoting the fullest possible utilization of
the pre-ent productive capacity of.industries, by avoiding undue re-
striction of production (except as may be teinpor'arily required),
by inorea-ing, the consumption of industrial and agricultural pro-
ducts through irreasing erasing iIai power, by reducing and reliev-
ing unemployment, by improving standards of labor, and by other-
wise rehabilitating industry.
(b) The Code as amended complies in all respects with the plerti-
nent provisions of said Title of said Act, including wiitlout limitation
subsection (a) of Section 3, sub-section (a) of Section 7 and sub-
section (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 de-sined
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
For these reasons, the amendment has been approved.
For the National Industrial Recovery Board:
W. A. HARRIMAN, Adninistrative Officer.
NOVEMBER 22, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE MACHINE-APPLIED STAPLE AND STAPLING
Delete Section 4 of Article VI and substitute in lieu thereof the
SECTION 4. (a.) It being found necessary in order to support the
administration 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:
(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 Code;
(2) 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 (a) an itemized budget of its estimated expenses
for the foregoing purposes, and (b) an equitable basis upon which
the funds necessary to support such budget shall be contributed by
members of the industry;
(3) 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 mem-
bers of the industry, and to that. end, if necessary, to institute legal
proceedings therefore in its own name.
(b) Each member of the industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Au-
thority, determined as hereinabove provided, and subject to rules
nnd regulations pertaining thereto issued by the National Industrial
Recovery Board. Only members of the industry complying with the
Code and contributing to the expenses of its administration as here-
inabove provided, unless duly exempted from making such contri-
butions, shall be entitled to participate in the selection of members
of the Code Authority or to receive the benefits of any of its volun-
tary activities or to make use of any emblem or insignia of the Na-
tional Recovery Administration.
(c) The Code Authority shall neither incur nor pay any obliga-
tion substantially in excess of the amount. thereof as estimated in
its approved budget, and shall in no event exceed the total amount
contained in the approved budgett, except upon approval of the Na-
tional 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.
Delete Section 12 of Article VII.
Approved Code No. 327-Amendment No. 2.
Registry No. 130-41.
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