Approved Code No. 396-Arnendrnent No.2 Registry No. 223-02 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

COD.E OF FAIR COMPETITION 

FOR THE 

MILK FILTERING MATERIALS 

AND THE DAIRY PRODUCTS COTTON 

WRAPPINGS INDUSTRY 

AS APPROVED ON APRIL 6, 1935 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

For sale by the Superintendent of Documents, Washington, D. C. - - - - - - - - - Price 5 cents 
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This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D. C., and by the following N. R. A. offices: 

Atlanta, Ga.: 625 Citizens & Southern National Bank Building. 

Baltimore, Md. : 130 Customhouse. 

Birmingham, Ala.: 201 Liberty National Life Building. 

Boston, Mass. : Room 1200, 80 Federal Street. 

Buffalo, N. Y.: 219 White Building. 

Chicago, Ill. : Room 204, 400 North Michigan A venue. 

Cleveland, Ohio : 520 Bulkley Building. 

Dallas, Tex. : 1212 Republic Bank Building. 

Detroit, Mich.: 415 New Federal Building. 

Houston, Tex. : 403 Milam Building. 

Jacksonville, Fla.: 425 United States Courthouse and Post Office 

Building. 

Los Angeles, Calif.: 751 Figueroa Street, South. 

Louisville, Ky.: 408 Federal Building. 

Minneapolis, Minn. : 900 Roanoke Building. 

Nashville, Tenn.: 415 Cotton States Building. 

Newark, N. J. : 434 Industrial Office Building, 1060 Broaq Street. 

New Orleans, La.: 214 Customhouse. 

New York, N. Y.: 45 Broadway. 

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Philadelphia, Pa. : 933 Commercial Trust Building. 

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Providence, R. I.: National Exchange Bank Building, 17 Exchange 

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San Francisco, Calif. : Humbolt Bank Building, 785 Market Street. 

Seattle, Wash.: 1730 Excha~e Building. 
Approved Code No. 396-Arnendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MILK FILTERING MATERIALS AND THE DAIRY 

PRODUCTS COTTON WRAPPINGS INDUSTRY 

As Approved on April 6, 1935 

ORDER 

APPROVING AMENDMENT OF ConE oF FAIR CoMPETITION FOR THE MILK 

FILTERING MATERIALS AND THE DAIRY PRODUCTS COTTON "'\VRAPPINGS 

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 an amendment to a Code of Fair Competition for the Milk Filtering Materials 

and the Dairy Products Cotton Wrappings Industry, 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: 

NOW, 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 President, including 

Executive Order 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 complies 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 amended to 

include an approval of said Code in its entirety as amended. 

NATIONAL INDUSTRIAL RECOVERY BoARD, 

By W. A. HARRIMAN, Administ·rative Officer. 

Approval recommended: 

M. D. VINCENT, 

Acting Division Ad1ninistrator. 

wASHINGTON, D. c., 

April 6, 1935. 

127172°----1749- 27----35 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the Hearing on the Amendment to the 

Code of Fair Competition for the Milk Filtering Materials and the 

Dairy Products Cotton Wrappings Industry, held in Room 2062 of 

the Department of Commerce Building, on January 7, 1935. The 

Amendment which is attached was presented by the Code Authority. 

In accordance with the customary procedure every person who had 

filed a request for an appearance was freely heard in public, and all 

statutory and regulatory requirements were complied with. 

The following Amendment is submitted for approval: 

Article VIII of the Code as now written relating to price filing 

has been replaced by " open price filing ", " costs and price cutting ", 

and " emergency provision ", as set forth in Office Manual, Part II, 

Section 3031.15211 to .152222, inclusive, and adding thereto the 

provisions for classifications of customers as set forth in Office 

Memorandum 267, dated July 20, 1934. 

FINDINGS 

The Deputy Administrator in his final report to the National 

Industrial Recovery Board on said Amendment to said Code having 

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

matter: 

The National Industrial Recovery Board finds 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 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 arid maintaining united 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 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 by 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. 

(2) 
3 

(c) The Code empowers the Code Authority to present the 

aforesaid Amendment on behalf or 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 in the economic process have not 

been deprived o:f the right to be heard prior to approval o:f said 

Amendment. 

For the above reasons this Amendment has been approved. 

For the National Industrial Recovery Board: 

APRIL 6, 1935. 

vv. A. HARRIMAN, 

Ad1ninistrative Officer. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE :MILK FILTERING MATERIALS AND THE DAIRY 

PRODUCTS COTTON WRAPPINGS INDUSTRY 

Article VIII is to be. amended to read as follows : 

1. (a) Each member of the industry shall file with a confidential 

and disinterested agent of the code authority or, if none, then with 

such an agent designated by the National Industrial Recovery Board, 

identified lists of all of his prices, discounts, rebates, allowances, and 

all other terms or conditions of sale, hereinafter in this article referred to as "price terms", which lists shall completely and accurately conform to and represent the individual pricing practices of 

said member. Such lists shall contain the price terms for all such 

standard products. of the industry as are sold or offered for sale by 

said member and for such non-standard products of said member as 

shall be designated by the Code Authonty. Said price terms shall 

in the first instance be filed within 30 days after the date of approval 

of this provision. Price terms and revised price terms shall become 

effective immediately upon receipt thereof by said agent. Immediately upon receipt thereof, said agent shall by telegraph or other 

equally prompt means notify said member of the time of such receipt. 

Such lists and revisions, together with the effective time thereof, 

shall upon receipt be immediately and simultaneously distributed to 

all members of the industry and to all of their customers who have 

applied therefor and have offered to defray the cost actually incurred 

by the Code Authority in the preparation and distribution thereof 

and be available for inspection by any of their customers at the office 

of such agent. Said lists or revisions or any part thereof shall not 

be made available to any person until released to all members of the 

industry and their customers, as aforesaid; provided, that prices 

filed in the first instance shall not be released until the expiration 

of the aforesaid 30 day period after the approval of this Code. The 

Code Authority shall maintain a permanent file of all price terms 

filed as herein provided, and shall not destroy any part of such 

records except upon written consent of the National Industrial 

Recovery Board. Upon request the Code Authority shall furnish to 

the National Industrial Recovery Board or any duly designated 

agent of the National Industrial Recovery Board copies of any such 

lists or revisions of price terms. 

(b) When any member of the industry has filed any revision, 

such member shall not file a higher price within forty-eight (48) 

hours. 

(c) No member of the industry shall sell or offer to sell any 

product, services of the industry, for which price terms have been 

filed pursuant to the provisions of this article, except in accordance 

with such pric-e terms. 

(d) No member of the industry shall enter into any agreement, 

understanding, combination or conspiracy to fix or maintain price 

(4) 
5 

terms, nor cause or attempt to cause any member of the industry 

to change his price terms by the use of intimidation, coercion, or 

any other influence inconsistent with the maintenance of the free 

and open market which it is the :purpose of this Article to create. 

2. The standards of fair competition for the industry with reference to pricing practices are dec.lared to be as follows: . · (a) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the industry or 

of any other industry or the customers of either may at any time 

complain to the Code Authority that any filed pr1ce constitutes 

unfair competition as destructive price cutting, imperiling small 

enterprise or tending toward ·monopoly or the impairment of code 

wages and working conditions. The Code Authority shall within 

5 days afford an opportunity to the member filing the price to 

answer such complaint and shall within 14 days make a ruling or 

adjustment thereon. If such ruling is not concurred in by either 

party to the complaint, all papers shall be referred to the Research 

and Planning Division of N. R. A. which shall render a report and 

recommendation thereon to the National Industrial Recovery Board. 

(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 pricing policies. 

(c) When an emergency exists as to any given product, sale below 

the· stated minimum price of such product, in violation of Section 3 

hereof, is forbidden. 3: (a) If the National Industrial Recovery Board, 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 National Industrial Recovery Board a determination of the stated minimum price 

of the product affected by the emergency and thereupon the N ational Industrial Recovery Board may proceed to determine such 

stated minimum price. 

(b) When the National Industrial Recovery Board shall have 

determined such stated minimum price for a specified product for 

a stated period, which price shall ~e reasonably calculated to mitigate 

the conditions of such emergency and to effectuate the purposes of 

the National Industrial Recovery Act, it 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 reconsideration or the National Industrial Recovery 

Board may cause any determinations hereunder to be reviewed or 

reconsidered and appropriate action taken. 

4. (a) The Code Authority shall cause to be formulated and keep 

current a classification of all types of customers of the industry. 
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Such classification shall be subject to the disapproval of the N ational Industrial Recovery Board and shall contain: (A) A complete 

list of all of the classes of customers of the industry, including a 

class to cover every known type of customer, and (B) definitions or 

descriptions o£ the several classes in terms o£ £unctions performed, 

or in other appropriate terms such as purchasers o£ defined quantities. 

(b) After submission to the National Industrial Recovery Board, 

i£ there is no disapproval or request for suspension o£ action within 

twenty (20) days, full information concerning the classification shall 

be made available to all members o£ the industry. No one shall by 

intimidation, coercion, or other undue influence cause or attempt 

to cause the inclusion o£ any customer in or the exclusion o£ any 

customer £rom any class o£ customers, or the exclusion o£ any class 

o£ customers from the classification, or the use o£ uniform or stipulated prices, discount, or differentials and each member o£ the industry may at all times classify his own customers in accordance 

with his own judgment. 

Approved Code No. 396-Amendment No. 2. 

Registry No. 223-02. 

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