Approved Code No. 14-Amendment No.1 Registry No. 259-01 

• 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE F FAIR COMPETITION 

FOR THE 

RAYON AND SYNTHETIC YARN 

PRODUCING INDUSTRY 

AS APPROVED ON MARCH 28, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cent3 
This puulication is for sale hy the Superintendent of Documents, Gove•·nmenl 

Printing Office, Washington, D. '., and uy district otlil:es of the Bureau of 

Foreign and Domestic Commerce. 

DIS'I RICT OFFICES OF THE DEPARTMENT OF COl\1MElU.:.E 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala.: 257 F ederal Building. 

Boston, Mass. : 1801 Cu tomhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Corum rce BuildiJ,g. Chicago, Ill.: Suite 1706, 201 North Wells Street. 

CleYeland, Ohio : Chamber of Commerce. 

Dallas. Tex. : Chamber of Commerce Building. 

Detroit, 1\licb.: 01 Fir.t ·ational Bank Builtling. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

S.an Francisco, Calif.: 310 Customhouse. 

Seattle, Wa h.: 809 Federal Office Building. 
Approved Code No. 14-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RAYON AND SYNTHETIC YARN PRODUCING 

INDUSTRY 

As Approved on March 28, 1934 

ORDER 

AMENDMENT TO CoDE OF FAIR CoMPETITION FOR THE R AYON AND 

SYNTHETIC yARN 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 approval of amendments to a Code of Fair Competition for the Rayon and Synthetic 

Yarn Producing Industry, and the annexed report on said amendments, containing findings with respect thereto, having been made 

and directed to the President : 

NO\V, THEREFORE, on behalf of the President of the United 

State , I, Hugh S. Johnson, Admini. trator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, includirg Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate, by reference, said annexed report and do find that said amendments and the Code as 

con. tituted after beina amended, comply in all respects with the 

pertinent provision , and will promote the policy and purposes of 

::;aid Title of said Act, and do hereby order that said amendments be 

and they are 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. 

Approval recommended : 

A. D. WHITESIDE, 

HuGH S. JoHN oN, 

Ad1ninistratot• for lndttst?"ial R ec.ovm·y. 

Division Ad1ninist'rator. 

MARCH 28, 1934. 

49485 °----425-169----34 (1) 
REPORT TO THE PRESIDENT 

The PREsiDENT, 

The White House. 

Srn: This is a report on the results of the N ot.ice of Opportunity 

to File Objections to Amendments to The Rayon and Synthetic Yarn 

Producing Industry Code, which wa publi ·hed on l\Iarch 5, 1934 

with the pro"Vi ion that objections again. t the Propo. eel Amendments could be filed anytime prior to l\Iarch 15, 1934. The Amendments, which are attached, were pre ented by duly qualified and 

authorized representatiYes of the Inclu try complying \\ith tatutory 

requirements and being the same agency that originally ubmittecl 

the Code. 

In accordance with cu to mary procedure, all complaint · recei Yed 

were given careful con ideration and all t:ltutory and reguL tory 

requirements were complied with. 

PROVISIONS OF THE A~fENDl\fENT 

There are two Amendments a follow : 

1. The first Amendn1ent proposed is an Amendment for the purpo e of clarifying the definition of the Indu. try and for the purpo e 

of definitely including producer of Cellulo e Acetate Yarn in the 

Code. 

2. An Amendment etting up Admini trn.tive provi ions in the 

Code so that the Industry can provide itself with a Legally constituted and effective Code Authority for allministration of the Code. 

FIXDIKG 

The Deputy Administrator in hi ~ final report to me on aid Amendments to said Code having found a herein et 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 policie and purpo es. of Title I of the ~ ational Industrial Recovery Act inclul1ing the remoYal of ob tructlon to the free flow of interstate and foreio·n commerce which tend 

to dimini h the amount thereof, and will pro iue for the general 

welfare by promoting the organization of Indu -try for th- purpo e 

of cooperative a ·tion amonrr trade group , by inducing and maintaininO" united action of labor and management under adequate goY-

~·nmental auction and upervision, by eliminating unfair compctitJye practice by prom ting the fulle t po sible utilization of the 

pr~ e~t produchve .capacit: of indu trie , by avoiding undue retn bon of productiOn (except a may be temporarily reqnired) by 

increasing the con umption of indu trial and agricultural products 

(2) 
3 

through increasing purcha ing power, by re h1cing and relieving unemployment, by improving standards of labor, and by otherwise 

rehabilitating industry. 

(b) The Code as Amended complies in all re p cts with the pertinent pro vi ·ions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

SubsectioP (b) of Section 10 thereof. 

(c) The Rayon and Synthetic Yarn Producer's group, which consi t of one member from each unit in the In lustry, is truly representative of the Industry and has applied for or con ents to the e 

Amendments. 

( l) The Amendments and the Code as Amende l are not designed 

to and will not permit monopolies or monopolistic practices. 

(e) The Amendments and the Code a Amen led are not designed 

to and will not eliminate or oppres mall enterprises and will not 

eli 'Criminate agaiust them. 

(f) Those engaged in other st.eps of the economic proces have not 

been d priYccl of the right to be heard prior to approval of aid 

Amendments. 

For the e reasons these Amendment have been approved. 

Respectfully, 

HuGHS. JoHNSoN, 

A drninis tra;toT. 

MARCH 28, 1934. 
AMENDMENT TO CODE OF FAIR COl\1PETITION FOR 

THE RAYON AND SYNTHETIC YARN PRODUCING 

INDUSTRY 

Amend Article II to read a. follow : 

ARTICLE II 

1. The term "rayon and synthetic yarn producing indu try ' as 

used herein is defined to mean the manufacture of rayon and/ or 

synthetic yarns from cellulose and/or cellulose acetate put up ancl 

packaged in forms ·uitable for the various consuming and fabricating branches of the textile industry. 

2. The term 'member of the indu try" as u eel herein means and 

includes but without limitation any incliviclua] partnership, as ociation, corporation, or other form of enterprise engaged in the 

indu. try as defined herein. 

Amend Article VIII by adding to the wording now appearing in 

the Code so that the completed Article will read as follows: 

ARTICLE VIII 

1. The indu -try shall set up within it~elf an agency to cooperate 

with t.he Administrator in the admini. tration and enforcement of 

this Code. 

2. A Code Authority i hereby constituted to cooperate with the 

Administrator in the administration of this Code. The Code Authority shall con ist of a. many person. a there are members of 

the Industry, to be ·elected in the following manner; each member 

of the indu. try shall <;:elect one repre entative who shall be a member 

of the Code Authority. In addition to membership as provided, 

there may be not more than three (3) members appointed by the 

Administrator to serve without vote and without expense to the 

incl us try. 

3. In order that the Code Authority shall at all times be truly 

repre entative of the industry and in other re pect comply with the 

provision · of the Act, the Admil1iRtrator may pre ·cribe such hearing 

as he may deem proper; and thereafter if he shall find that the Co le 

Authority i not truly representative or doe not in other respects 

comply with the provisions of the Act may require an appropriate 

modification in the metho l of selection of the Code Authority. 

4. Members of the indu try shall be entitled to participate in and 

share the benefits of the activities of the Code Authority and to 

participate in the selection of the members thereof by assenting 

to and complying with the requirements of this Code and sustaining their reasonable share of the expense of its administration. 

( 4) 
5 

Such reasonable share of the expenses of administration shall be 

determined by the Code Authority subject to review by the Administrator on the basis of volume of business and/ or such other factors 

as may be deemed equitable. 

5. Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpose. Nor shall any 

members 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 misfeasance or malfeasance. 

6. The Code Authority shall have the following further powers 

anj duties: 

(a) To undertake the execution of the provisions of this Code 

and to provide for the compliance of the industry with the provisions of this Code, and the By-Laws of the Code Authority, and 

the Act in accordance with such regulations as may be prescribed 

by the Administrator; 

(b) To adopt By-Laws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

The method of voting to be followed at all meetings of the Code 

Authority shall be as follows: all determinations of the Code Authority shall be made by the affirmative vote of a majority of the 

Code Authority (or by duly-qualified alternates of individual members of the Code Authority). A majority of the Code Authority 

is defined to mean a majority in number which also represents at 

least fifty per cent of the productive capacity of the industry. 

"Productive capacity" for the purposes of this section shall be 

the productive capacity in pounds of one hundred and fifty (150) 

denier yurn, to be computed every three (3) months according to a 

method to be determined by the Code Authority, subject to the 

disapproval of the Administrator. 

(c) To request and receive . from members of the Industry such 

information and reports as are required for the administration of the 

Code. In addition to information which may be required to be 

submitted by the Code Authority, all or any of the persons subject 

to this 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 the Administrator may designate; nor shall anything in any Code relieve any 

person of existing obligations to furnish reports to Government 

agencies. No individual reports shall be disclosed to any other member of the Industry or any other party except to such governmental 

agencies as may be directed by the Administrator. 

All reports, statistics and information required for the Administration of this Code by the Code Authority shal1

l be transmited to the 

offices of the Secretary of the Code Authority, or other impartial 

agency designated by the Code Authority, and such reports and information shall be kept confidential. No publication thereof in any 

manner shall be made to anyone other than in combination with 

similar information to be furnished by other members of the industry, provided that identification if individual reports shall be re-
moved, and that all record and data of the Code Authority shall be 

made available to the Admini b·ator or his duly authorized agent. 

The type of reports, . tati tic and other information which may be 

requested by the Code Authority of member of the industry shall 

be ubject to the approval of the Administrator. 

(d) To make recommendations to the Aclmini b·ator for the coordination of the admini tration of this Code with such other codes, 

if any, as may be related to the industry. 

(e) To secure from member of the inclu try an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Code Authority and its activities. 

(f) To cooperate with the Admini b·ator in regulating the use 

of any N.R.A. insignia solely by those n1ember of the industry 

who haYe as ented to, and are complying with, this Code. 

(g) To recommend to the Administrator addition , alterations, 

amendments or modifications of this Code provided that all such 

recommendations be submitted first to members of the indu try for 

their approval and provided that no recommendation for a ldition, 

alteration, amendment, or modification of this Code or of Code 

Authority rules or regulations promulgated under this Code shall 

be made which binds any of the divisions of this industry, namely, 

Yiscose acetate, nitrocellulose and/or cupra-ammonium without 

the approval of that division. Approval of a diYision is defined 

to mean approval by a majority in number of that division which 

also repre ent at least fifty percent of the productive capacity (as 

hereinabove defined) of that clivi ·ion. All proposals for additions, 

alterations, amendments or modifications of this Code made by 

members of the industry may be submitted in the first instance to 

the Code Authority for its consideration and for recommendations 

to the Administrator. 

7. If the Administrator shall determine that any action of a Code 

Authority or any agency thereof may be unfair or unjust or contr·ary to the public interest, the Administrator may require that such 

action be suspended to afford an opportunity for investigation of the 

merits of such action and further consideration by such Code Authority or agency pending final action which shall not be effective 

unless the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with 

such action in its original or modified form. 

8. Any member of this industry shall have the right to appeal to 

the Admini tl·ator, under such rules and regulations as he may prescribe, in respect to any rule, regulation, or other course of action, 

is ·ned or taken by the Code Authority. None of the powers or 

authorities vested by this Code in the Rayon and Synthetic Yarn 

Code Authority in respect of the operations of memb rs of the Rayon 

and Synthetic Yarn Producing Industry shall be made effective in 

such manner as to preclude an appropriate review thereof by the 

Administrator. 

ApproYed Code No. 14--Amendment No. 1. 

Registry No. 259-01. 

0