Approved Code No. 267-Arnendment No.1 Registry No. 203-3-03 

NATIONAI.J RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE BAG INllUSTRY 

AS APPROVED ON AUGUST 29, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 267-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

USED TEXTILE BAG INDUSTRY 

As Approved on August 29, 1934 

ORDER 

APPROVING AMENDMENTS TO CoDE oF F AIR CoMPETITION FOR THE 

UsED TExTILE BAG 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 approval of amendments 

to a Code of Fair Competition for the Used Textile Bag Industry, 

and hearings having been duly held thereon and the annexed report 

on said amendments, containing findings with respect the.reto, having 

been made and directed to the President : 

NO\V, 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 President, including E xecutive 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 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 do hereby order tha.t sa id 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, such approval and such amendment to 

take effect ten · (10) days from the date hereof, unless good cause to 

the contrary is shown to the Administrator before that time and 

the Administrator issues a subsequent order to that effect. 

Hum-r S. JoHNSON, 

Administrator for Industrial Recovery. 

Approval recommended: 

RoBERT L. HousToN, Division Ad,ministrator. 

\VASHINGTON, D.C., 

August 29, 193.4,. 

83540°----1044-143----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

Srn: This is a report on certain amendments to the Code o£ Fair 

Competition for the Used Textile Bag Industry, and on the hearing conducted thereon in \Vashington, D.C., May 17, 1934. 

The first amendment provides a tolerance for peak periods for 

the entire Industry, with payment of time and one-third for 

overtime. 

The second amendment clarifies the hour provisions relating to 

partnerships. 

The third amendment establishes more definitely the procedure 

for the support of the administration of this Code. 

The fourth amendment increases the powers and duties of the 

Code Authority relative to arbitration o£ disputes and standardization of products of the Industry. 

The fifth amendment deals with cost and price cutting, emergency 

proYi ions, and cost finding. 

The Deputy Administrator in hi 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 

ob tructions to the free flow of interstate and foreign commerce 

"TI"hich 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 

adequate governmental sanctions and supervision, by eliminating 

unfair competiti,-e practices, by promotincr 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 unemployment, by improving standards o£ 

labor, and by otherwise rehabilitating incln -try. 

(b) The Code as amended complies in all re pects with the pertinent provi ·ion of said Title of said Act, including without limitation sub-se ·tion (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- ~aid amendments on behalf of tha Industry as a whole. 

(d) The amendments and the Code a amended are not designated 

to and will not permit monopolies or monopolistic practices. 

(2) 
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(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 said 

amendments. 

For these reasons these amendments have been approved. 

AUGUST 29' 1!)34. 

II UGH s. JOHNSON' 

Administrator. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE USED TEXTILE BAG INDUSTRY 

Article III, Section 1, shall be amended by changing the period 

at the end of this section to a semi-colon and adding the following: 

"provided that during peak seasons not to exceed eight (8) consecutive weeks in any one year employees may work not more than 

forty-eight ( 48) hours per week and provided further that all 

hours in excess of the maximum hours provided herein for the 

various classes of employees shall be compensated at not less than 

time and one-third the normal rate of pay." 

Article III shall be amended by adding a new section as follows : 

"5. vvnere a member of this Industry is a partnership, not more 

than one individual of such partnership shall work on any of the 

operations of the Industry, except office functions, in excess of the 

maximum hours provided herein." 

Section 5 of Article VI shall be deleted and the following substituted therefor: 

" 5. (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 Administrator for his approval, subject 

to such notice and opportunity to be heard as he may deem necessary, 

" (I) an itemized budget of its estimated expenses for the foregoing purposes, and 

" (II) 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 approved by the Administrator, to determine and obtain equitable 

contribution as above set forth by all members of the Industry, and to 

that end, if necessary, to institute legal proceedings therefor 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 Authority, determined as hereinabove provided, and subject to rules and 

regulations pertaining therto issued by the Administrator. Only 

members of the Industry complying with the Code and contributing 

to the expanses of its administration as hereinabove provided, unless duly exempted from making such contribution, shall be entitled to participate in the selection of m.embers of the qo~~ Authority or to receive the benefits of any of Its voluntary acbv1bes or 

to make use of any emblem or insignia of the National Recovery 

Administration. 

(4) 
" (c) The Code Authority shall neither incur nor pay any obligation substantially in excess of the amonnt thereof as estimated in 

its approved budget, and shall in no event exceed the total amount 

contained in the approved budget, except upon approval of the Administrator; and no subsequent budget shall contain any deficiency 

item for expenditures in excess of prior budrret estimates except those 

which the Administrator shall have so approved." 

Article VI shall be amended by adding new s~ctions as follows: 

"7. In addition to those specified in Section 2 of this Article, the 

Code Authority shall have the following powers and duties: ~' (a) To provide appropriate facilities for arbitration of contractual disputes, excepting labor disputes, and subject to the ap- proval of the Administrator, to prescribe rules of procedure and 

rules to effect compliance with awards and determinations; 

" (b) To prepare standard classifications and specifications for 

the products of the I.ndustry, which, on approval of the Administrator, shall be binding on all members of the Industry in the purchase and sale of the products of the Industry. 

"8. Cost and Price Outting.-The standards of fair competition 

for the Industry with references to pricing practices are declared 

to be as follows : 

" (a) Wilfully destructive price cuttiug is an unfair method of 

competition and is forbidden. 

" (b) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended 

that sound cost estimating methods should be used and that consideration should be given to costs in the determination of pricin~ 

policies. 

" (c) vVhen an emergency exis~s as to any given product, sale 

below the stated minimum price of such product, in violation of 

Section 9 hereof, is forbidden." 

"9. E11urgency Provisions.-(a) If the Administrator, after investigation shall at any time find both ( 1) that an emergency has 

arisen within the Industry 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 Industry for a limited period is necessary 

to mitigate the conditions constituting 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 thereupon the Administrator 

may proceed to determine such stated minimum price. 

"(b) When the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably 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 Industry 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 recon-
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sideration or the Administrator may cause any determinations hereunder to be reviewed or reconsidered and appropriate action taken. 

"10. Cost Findings.-The Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all 

members of the Industry, and shall submit such methods to the 

Administrator for review. If approved by the Administrator, full 

information concerning such methods shall be made available to all 

members of the Industry. Thereafter, each member of the I ndustry 

shall utilize such methods to the extent found practicable. Nothing 

herein contained shall be construed to permit the Code Authority, 

any agent thereof, or any member of the I ndustry to suggest uniform 

additions, percentages or differentials or other uniform items of cost 

which are designed to bring about arbitrary uniformity of costs or 

prices." 

Article VI I shall be amended by adding a new Section as follows : 

"9. Cancellation of any contract or order for the purchase or sale 

of any of the products of the I ndustry without consider ation or without sufficient legal cause cognizable either at law or at equity." 

Approved Code No. 267- Amendment No.1. · Registry No. 203/3/03. 

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