Approved Code No. 130-Amendment No. 2 Registry No. 1215-06 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

PRECIOUS JEWELRY 

PRODUCING INDUSTRY 

AS APPROVED ON MARCH 7, 1935 

WE DO OUR PART 

UNITED STA TES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

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Approved Code No. 130-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

PRECIOUS JEWELRY PRODUCING INDUSTRY 

As Approved on March 7, 1935 

ORDER 

.APPROVING AMENDENT OF CODE OF FAIR COMPETITION FOR THE 

PRECIOUS JEWELRY PRODUCING INDUSTRY 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

Recovery Act, approved June 16, 1933, for the Precious Jewelry Producing Industry, said amendment being to eliminate Subsection ( c) 

of Section 1 of Schedule A of said Code, and hearings having been 

duly held thereon and the annexed report on said amendment, containing findings with respect thereto, having been made and directed 

to the President : 

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

States, the National Industrial Recovery Board, pursuant to authority vested in said Board by Executive Orders of the President, including Executive Order No. 6859, dated September 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. 

NATION AL INDUSTRIAL RECOVERY BOARD, By W. A. HARRIMAN, Ad1ninisfrative Officer. 

Approval recommended: 

JOHN w. UPP, 

Acting Division Adniinistrator. 

WASIIINGTON, D. c., 

March 7, 1935. 

120138°-1603-44-35 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: A Public Hearing on the amendment to the Code of Fair Competition for the Precious Jewelry Producing Industry, submitted by 

the Schoenthaler-Green-Ellbogen-Wood Committee, representing 57 

manufacturers of fraternity jewelry out of a possible 100 concerns 

manufacturing fraternity jewelry, was conducted in Washington on 

April 26, 1934, in accordance with the provisions of the National 

Industrial Recovery Act. 

The above concerns filed a petition with the Administration stating 

that sub-section ( c) of Section 1 of Schedule A of the Code of Fair 

Competition for the Precious Jewelry Producing Industry was discriminatory in its effect upon the majority of concerns producing 

fraternity jewelry. Evidence was presented by all interested parties 

including representatives of many fraternities. 

It has been stated that the elimination of this clause would put the 

Administration on record as not sanctioning the contracts already 

existing, as the clause in its present form appears to offer even more 

protection than the contracts themselves. The validity or invalidity 

of these contracts is not the point at issue. 

The following facts have been developed: 

(1) Five hundred and thirty four (534) contracts, which represent 

85 percent of the outstanding number of contracts, are held by one 

member of the Industry. 

(2) These contracts are executed by oRe concern and its subsidiaries. 

(3) This one firm is one of the very few firms intere ted in the 

retention of this clause in the Code. Other interested parties are 

the fraternities, representing the consumer interests in thi matter, 

who see a way other than through ordinary legal proceedings of 

protecting the sale of their insignia. 

( 4) The actual operation of this clau e tends to extend monopoly 

rights beyond the period granted the owner of an original design 

by patent law and to extend to fraternities who hold contracts, privilege which they cannot secure under pre ent Patent Laws. 

( 5) The ab ence of this cla u e in the Code doe not abrogate outstanding contract , nor permit interference with them. 

(6) There is no objection to the fraternitie making contracts with 

a ingle manufacturer. There is however, no logical reason for giving the ode Authority the ta k of enforcing such contracts by requiring that they report a member of the industry for violation of 

the Code for manufacturing in ignia, which were it not for this provi ion in the Code he would have a legal right to do. 

(7) Our conclu ion in thi matter i that the injury pos ible to a 

laro-e number of member of the inclu try far outw ighs the good 

done for the fraternities by retaining this paragraph in the Code. 

(2) 
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The Deputy Administrator in his final report on said amendment 

to said Code having found as herein set forth and on the basis of 

all the proceedings 1n this matter : 

It is 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 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 adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the 

present productive capacity of the industries, by aYoiding undue 

restrictions 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 

rehabilitatinO' industry. 

(b) The Code as amended 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) The group was and is an industrial group truly representative 

of the manufacturers operating under Schedule A of the Code for 

the Industry and that said group imposed and imposes no inequitable 

restrictions on admission to membership therein and has applied for 

this amendment. 

( d) 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. 

( e) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to the approval of 

said amendments and modifications. 

For these reasons the amendment has been approved. 

For the National Industrial Recovery Board: 

,v. A. l!ARRIMAN, 

Adm,inistrative Officer. 

MARCH 7, 1935. 
Al\1END~1ENT TO CODE OF FAIR COMPETITION FOR THE 

PRECIOUS JE,VELRY PRODUCING INDUSTRY 

AMENDMENT 

Delete the :following subsection ( c), Section 1, Schedule A: 

" ( c) vVhere a :fraternity controls the manu:facture and distribution o:f its insignia under contract, it is an un:fair trade practice for 

unauthorized persons to manufacture, solicit, or accept orders for 

such insignia." 

Approved Code No. 130-Amendment No. 2. 

Registry No. 1215-06. 

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UNIVERSITY OF FLORIDA 

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