v 

Approved Code No. 282-Amendment No. 3 Registry No. 1728-2-11 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

RESTAURANT INDUSTRY 

AS APPROVED ON MARCH 8, 1935 

WE -DO OUR PART 

UNITED STATES 

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WASHINGTON: 1935 

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Approved Code No. 282-Amendment No. 3 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

RESTAURANT INDUSTRY 

As Approved on March 8, 1935 

ORDER 

APPROVING ArvrENDlVIENT OF CoDE OF FAIR Col\'l:PETITION FOR THE 

RESTAURANT INDU TRY 

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 an amendment 

to a Code of F air Competition for the Restaurant Industry, and an 

opportunity to be heard having been duly afforded all interested 

parties, and the annex-ed report on said amendment, containing findings with respect thereto, having been made and directed to the 

President : 

NO\iV, THEREFORE, on behalf of the Pre ident of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it 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. 

NATIONAL INDUSTRIAL REcovERY BoARD, 

By vV. A. HARRIMAN, Adndnistrative Officer. 

Approval recommended: 

ARMIN w. RILEY, 

Division Ad1ninistrator. 

\V ASHINGTON, D. c., 

March 8. 1935. 

120144°----1603-51----35 (1) 
REPORT TO THE PRESIDENT 

The PRE IDE NT, 

The White Hottse. 

Srn : This i a report on an amendment to the approved Code 

of Fair Competition for the Restaurant Industry, number 282, which 

wa approved by you on February 16, 1934. 

The Code Authority for the Restaurant Industry, in accordance 

with Subsection (d) of Section 1 of Article VIII of said code, 

ha made application for the amendment thereof in the following 

respects: 

1. To provide for the rai ing of fund to enable the Code Authority to carry out its duties 1n adm.ini tering the Code, by an equitable 

method of contribution. 

2. To relieve members of the Code Authority who exorcise reasonable diligence in the conduct of their duties, from liability for 

any action taken in connection therewith except for their own wilful 

malfeasance or non-feasance. 

3. To change the word "Administrator " wherever it appears in 

the Code to the phrase " National Indu trial Recovery Board ", with 

appropriate alterations in the pronouns referring thereto. 

In accordance with customary procedure, every interested person 

was afforded an opportunity to be heard on this an1endment and all 

statutory and regulatory requirements have been complied with. 

FINDINGS 

The Deputy Administrator, in his final report to the National 

Indu trial Recovery Board on said amendment to said Code, having 

found as herein set forth and on the basis of all the proceedings in 

this matter: . · 

The National Indu trial Recovery Board find that: 

(a) The amendment 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 

obstructions to the free flow of interstate and foreign commerce 

which tend to diminish the amount there.of, 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 superivsion, by eliminating unfair 

competitive practices, by pron1.oting 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 an l relieving unemployment, by improving standards of labor, and by Ptherwise 

rehabilitating the Restaurant Industry. 

(2) 
3 

(b) The Code a amended complies in all resr .. ects with the pertinent provision of said Title of said Act, including without limitation sub- ection (a) of Section 3, sub-section (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. 

(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 

amendment. 

(g) Said amendment i necessary in order to support the administration of this Code~ to maintain standards of fair competition 

established by this Code, and to effectuate the policies of the Act. 

Said amendment was accordingly approved. 

For the National Industrial Recovery Board: 

MARCH 8, 1935. 

vv. A. HARRIMAN, 

Administrative Officer. 
A~IEND~IENT TO CODE OF FAIR COlVIPETITION FOR 

Tl-IE REST \.URANT INDUSTRY 

Pursuant to Article VII, Section 1, Subsection (d), of the Code 

of Fair Competition for the Restaurant Industry, as approved by 

the President on F ebruary 16, 1934, and upon application therefore 

by the National Re tanrant Code Authority, a group truly representative of the Industry, and in accordance with the provisions of 

Title I of the National Industrial Recovery Act, and in order to 

effectuate the policy of aid Act, the following provisions are establi heel a an amendment to said Code of Fair Competition for 

the Restaurant Industry for the establishment of fair trade practices within the industry on and after the effective date hereof. 

A~m:Nol\m ... T TO CoDE 

Amend Article VIII as follow : 

Add the following additional sections : 

SECTION 2. It being found neces ary, in order to support the adlninistration 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: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purpose ..... , and to meet such obligations 

out of funds which may be raised a hereinafter provided and which 

shall be held in tru t for the purposes of the Code; 

(b) 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 

expen e 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; 

(c) After such budget and basis of contribution have been approved by the National Industrial R covery Board, to determine 

and obtain equitable contribution as above set forth by all such 

members of the Industry, and to that end, if necessary, to institute 

legal proceedings therefore in its own name. 

SECTION 3. Each member of the Industry hall pay his or its 

equitable contribution. to the expenses of the maintenance of the 

Code Authority, determined as herein above provided, 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 expen es 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 Codn Authority or to receive the benefits 

(4) 
5 

of any of its voluntary activities or to make use of any emblem or 

insignia of the National Recovery Administration. 

SECTION 4. The Code Authority shall neither incur nor pay any 

obligations 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 budget, except upon approval 

of theN ational Industrial Recovery Board; and no subsequent budget 

shall contain any deficiency item for expenditures in excess of prior 

budget estimates except those which theN ational Industrial Recovery 

Board shall have so approved. 

Am.end present Sections 2 and 4 to renumber as Sections 5 and 6 

respectively (old Section 3 having been heretofore deleted by 

Amendment 2, approved Dec. 19, 1934). 

Add new subsection (h) to Section 1; 

Nothing contained in this Code shall constitute the 1nembers of 

the Code Authority partners for any purpose. Nor shall any member 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 malfeasance or non-feasance. 

Amend the Code as follows : 

Replace the word "Administrator", wherever it appears throughout the Code of Fair Competition for the Restaurant Industry, with 

the words "National Industrial Recovery Board" and make the 

appropriate grammatical revisions necessitated by this change. 

Approved Code No. 282-Amen<lment No. 3. 

Registry No. 1728-2-11. 

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UNIVERSITY OF FLORIDA 

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