Ap:uoved Code No. 352-Amendment No. 1 Registry No. 234-1-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

FLAG MANUFACTURING 

INDUSTRY 

AS APPROVED ON MARCH 16, 1935 

WE DO OUR PARt 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASHINGTQN : 1935 

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Approved Code No. 352-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FLAG MANUFACTURING INDUSTRY. 

As Approved on March 16, 1935 

ORDER 

APPROVING Al\mNDMENT OF CoDE OF FAIR CoM: PETITION FOR THE Fr AG 

M:ANUFACTURING 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, approYed June 16, 1933, for approval of an amendment to the Code of Fair Competition for the Flag ~1anufacturing 

Industry, and opportunity to be heard having been duly afforded all 

interested parties and the annexed report on said amendment, containing findings with respect thereto having been made and directed 

to the President: 

NOvV, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the Pre iclent, including Executive Order No. 6859, dated September 27, 1934, and otherwise, does 

hereby incorporate, by reference aid annexed report and does find 

that said amendment and the Code as constitu,tecl after being 

amended comply in all respects with the pertinent provi. ions and 

will promote the policy and purposes of said Title of aid 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 as amended. 

NATIONAL INDUSTRIAL REcovERY BoARD, 

By ,V. A. HARRil\fAN, Administrative Officer. 

Approval recommended : 

PRENTiss L. CooNLEY, 

Division Adn'iinistrator. 

'V ASHINGTON, D. C., 

M a1·ch 16, 1935. 

122019°----1603-96----35 (1) 
REPORT TO THE PRESIDENT 

The PnESIDE:r-;T, 

The lVhite H ctttse. 

Sm: This is a report on an amendment to the Code of Fair Competition for the Flag lVIanufacturing Industry. The amendment 

which is attached was presented by the Code Authority for the Flag 

11anufacturing Indu try. 

Notice of opportunity to be heard was given all interested parties, 

and the one objection received was given careful consideration. 

The Amendment provides that Article VI, Section 8 (f) of the 

Code shall be amended to provide for the mandatory payment of 

Code Assessments. It further provides that Section 5 and Section 

8 (k) shall be deleted from the Code. The Daputy Administrator in his final report on said amendment 

to said Code having found as set forth and on the basis of all proceedings in this matter 5 

The National Industrial Recovery Board finds that 

(a) The amendment to said Code and the Code as amended are 

'lYell 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 po~sible 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 of labor and otherwise rehabilitating 

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 Code empowers the Code Authority to present the aforesaid 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. 

(2) 
3 

(f) 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 amendment. 

For the above reasons this amendment has been approved. 

For the National Industrial Recovery Board: 

MARCH 16, 1935. 

w. A. HARRIMAN, 

Administrative Officer. 
A~1ENDMENT TO CODE OF FAIR C0~1PETITION FOR THE 

FLAG ~1ANUF ACTURING INDUSTRY 

Section 5 and Section 8 (g) of Article VI shall be deleted from the 

Code. Sections 6, 7 and 8 of Article VI shall be changed to Sections 

5, 6 and 7 respectively. Sections 8 (h) and 8 (i) of Article VI shall 

be changed to Sections 7 (g) and 7 (h) respectively. Section 8 (f) 

of Article VI shall become Section 7 (f) and shall be amended to read 

as follows: 

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 raisl'ld 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 (1) an itemized budget of its estimated expenses 

for the foregoing purposes, and (2) 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 National Industrial Recovery Board, 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. 

4. 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 pxovided, and subject to rules and 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 hereinabove 

provided, (unless duly exempted from making such contributions) 

shall be entitled to participate in the selection 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. 

5. The Code Authority shall neither incur nor pay any obligations 

substanitally 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 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. 

Approved Code No. 352-Amendment No. 1. 

Registry No. 234-1-01. 

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