Approved Code No. 407-Am~ndment No. 1 Registry No. 607-1-01 

L 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMEN'TS TO 

CODE OF FAIR COMPETITION 

FOR THE 

DRY COLOR INDUSTRY 

AS APPROVED ON SEPTEMBER 14, 1934 

WE DO OUR PART 

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WASHINGTON: 1934 

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Approved Code No. 407-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

DRY COLOR INDUSTRY 

As Approved on September 14, 1934 

ORDER 

APPROVING Al\IENDM:ENTS OF ConE OF FAIR Col\IPETITION FOR THE DRY 

COLOR 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 Dry Color Industry, and 

opportunity to be heard having b0 en afforded all interested parties, 

and any objections filed having been duly considered, and the annexed report on said amendments, containing findings with respect 

thereto, having been made and directed to the President: 

NOvV, 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 Executive 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 that said amendments 

be and they are hereby approved, and that the previous approval of 

said Cod.e is hereby modified to include an approval of said Code 

in its entirety as amended. 

Approval recommended: 

JOSEPH F. BA.TTLEY, 

HuoH S. JOHNSON, 

Adrninistrat01· for I ndustrial R ecovery. 

A cting Division Administrator. 

w A.SHINGTON, D.C., 

8epte1nber 14, 1934. 

86019°-1181-63-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House . 

Srn: This is a report on the proposed amendments to the Code of 

Fair C~mpetition for the pry Color Indu_stry as approved by you 

on Apnl 25, 1934. A notrne of opportunity to be heard has been 

published, giving all interested parties full opportunity to be heard. 

This report covers two amendments, the purposes and effects of 

which are as follows : 

Amendment No. 1 provi les that the Code Authority will be notified by t_he impartial agency, to whom_ assessments are to be paid, 

of all failures to pay such a essmcnts in order that suitable action 

may be taken by the Code Authority as provided in the Code. 

Amendment No. 2 enables the Code Auth rity to incur such reasonable obligations as are necessary for the administration of the 

Code. It requires that the Code Authority submit for the approval 

of the Administrator an itemized budget and an equitable basis of 

pro-rating the as essments to be collected fa·om the members of the 

Indu try. Payment of an equitable contribution to the expenses of 

the Code Authority by members of the Industry is made mandatory 

by this arnendment if their principal line of busin° s is covered by 

this Code. 

FI.l~DINGS 

The Deputy Administrator in his final report to me on said 

amendments to said Code having f ound as herein set forth and on 

the basis of all the proceedings in this matter : 

I find that: 

(a) The amen hnents to said Code and the Code as um ended are 

well designed to promote the policies and purpo es of Title I of the 

N aiional Industrial Recovery A t including the removal of ob~tructions to the fr e flow of interstate and foreign commerce which tenJ 

t o diminish the amount thereof, and will r-,rovide :for the general 

welfare by promoting the organization of industry for the purpose 

of ooperative a tion of labor and management under adequate governmental sanction and supervision, by eliminating unfair ompetitive practices, by promoting the fulle t I os ible utilization of 

the pri:>sent productive cflpacity of industri s, by aYoiding undue 

r estriction of production ( except as may be temporarily required), 

by increas,ing the consumption of industrial an 1 agricultural products through increa5ing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwi e r ehabilitating industry. 

(b) The Code as amendecl complies in all respects with the pertinent provision · of sai l Title of ·aid Act, incln--:1 ing without limi-

(2) 
3 

t ation subsection (a) of Section 3, subseeion (a) of Section 7 and 

subsection (b) of S ction 10 thereof. 

( c) The Code empowers the Code Authority to pre ent the aforesaid amendments on behalf of the Industry a a whole. 

( d) These amen hnents an l th° Code as amended are not designed to and will not permit 1nonopolie or monopoli tic practices. 

( e) These amendnrents and the Code as amended are not designed 

to and will not eliminate or oppre. mall enterpri es and will not 

operate to discriminate ag~inst them. 

(f) Tho e engaged in other steps of the economic proce s have 

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

ame:ndments. 

For these reason ~ these amendment ha-re be.en approved. 

Respectfully, 

SEP'.rEMllEil 14, 1934. 

HuoH S. JOHNSON, 

Administrator. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR . THE DRY COLOR INDUSTRY 

AMENDMENT 1. Modify Article VI, Section 4 (a), by adding 

thereto the following words: "provided, however, that if the impar-

-tial agency shall report that any member of the Industry has for 

sixty ( 60) days after the date of mailing the notice of the assessment 

failed· to pay such assessment, the amount of such assessment shall be 

made known to the Code Authority for the purpose of taking any 

action authorized by Section 4 ( e) of Article VI of the Code." 

AMENDMENT 2. Delete Section 4 ( e) of Article VI and substitute 

therefor the following : 

" ( e) 1. 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: 

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

ap.d proper for the foregoing purpose,sr-., and to meet such obli- ... gations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of the 

Code; 

"(b) To submit to the Administrator for his approval, subject to such notice and opportunity to he heard as he 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 Dry Color Industry ; 

" ( c) After such budget and basis ·af contribution have been 

approved by the Administrator, to cretermine and obtain equitable contribution as above set forth by all members of the Dry 

Color Industry, and to that end, if necessary, to institute legal 

proceedings therefor in its own p.a.me. 

"2. Each member of the Dry Color 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 thereto issued by the Administrator. 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 contribution), shall be entitled to participate in the selection of the Code 

Authority or to receive the benefits of any of its voluntary activities 

(4) 
5 

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

Administration. 

"3. The Code Authority shall neither incur nor pay any obligation 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 the 

Administr ator; and no subsequent budget shall contain any deficiency 

item for expenditures in excess cd priqr budget estimates except 

those which the Administrator sh all have so approved." 

Approved Code N o. 407-Amendruent No. 1. 

Registry No. 607-1-01. 

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