Approved Code No. 2!>8-Amendment No. 1 Registry No. 299-1-21 

[ 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

WIPING CLOTH INDUSTRY 

. .. . . 

AS APPROVED ON SEPTEMBER 9, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

\ I 

For sale by the Superintendent of Documents, \Vashington, D.C. - - • • n • - .. Price 5 cents 

v 
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Approved Code No. 298-Amendment No. 1 

AMENDl\iENT TO CODE OF FAIR COMPETITION 

FOR THE 

WIPING CLOTH INDUSTRY 

As Approved on September 9, 1934 

ORDER 

APPROVING AMENDMENTS TO CoDE OF FAIR CoMPETITION FOR THE 

WIPING CLOTH 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 Wiping Cloth Industry, and 

hearings having been duly held thereon and the annexed report on 

said amendments, containing findings with respect thereto, having 

been made and directed to the President: 

NOW, 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 Code is hereby modified to include an approval of sa1d Code 

in its entirety as amended, such approval and such amendment to 

take effect ten ( 10) clays from the date hereof, unless good cau e 

to the contrary is shown to the Administrator before that time and 

the Administrator i sues a subsequent order to that effect. 

HuGH S. JoHNSON, 

Administrator for Industrial R ecovery. 

Approval recommended : 

RoBERT L. Hou TON, 

Division Administrator. 

w .ASHIXGTON, D.C., 

September D, 1934. 

84 07°----1181-30----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on certain amendments to the Code o£ Fair 

Competition for the vViping Cloth Industry, and on the hearing 

conducted thereon in Washington, D. C., July 10, 1934. 

The first amendment establishes more definitely the procedure for 

the support of the administration of this Code. 

The second amendment increases the powers and duties of the Code 

Authority relative to the preparation of standard, domestic and 

imported classifications and specifications for products of the 

Industry. 

The third amendment eliminates destructive price· cutting, determines when a fixed minimum basis for prices shall exist, and 

includes the standard emergency provisions. 

The fourth amendment charges the Code Authority to have formulated cost finding and accounting methods, and further limits such 

methods to the extent of eliminating an arbitrary uniformity of 

costs and prices in the Industry. 

The Deputy Administrator in his final report to me on said 

amendments to said Code hav~ found as herein set forth and on 

the basis of all proceedings in th1s matter; 

I find that: 

(a) The amendments 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 of labor and management under adequate governmental sanctions and supervision, by eliminating unfair 

competitive pra-ctices, by promoting the fullest possible utilization of 

the present productive capacity of industries, by avoiding undue rer.;triction of production (except as may be temporarily required), 

by increasing the consumption of industrial and agricultural prodnets 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 

sub-section (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 amendments on behalf of the industry as a whole. 

(d) The amendments and the Code as amended are not designed 

to and wi.J.l not permit monopolies or monopolistic practices. 

(2) 
3 

' (e) The amendments and tl1e Code as amended are not de igned 

to and "Will not eliminate or oppre :s mall enterprises and "Will not 

operate to discriminate again t them. 

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

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

amendments. 

For these reasons these amendments have been approved. 

SEPTEMBER 9, 1934. 

H GH S. JoHN ON, 

AdmlfinistratCYr. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE WIPING CLOTH INDUSTRY 

Modify Article VI by deleting Section 5 and substituting in lieu 

thereof the following : 

5. (a) 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 raised as hereinafter provided and which 

shall be held in trust for the purposes of the Code; 

(2) To submit to the Administrator for his approval, subject to 

such notice and opportunity to be 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 

Industry: 

(3) After such budget and basis of contribution have been approved by the Administrator, 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. 

(b) 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 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 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. 

(c) 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 the approval of the 

Administrator, and no subsequent budget shall contain any deficiency 

item for expenditures in excess of prior budget estimates, except those 

which the Administrator shall have so approved. 

Modify Article VI, Section 2, by adding sub-section (i) as follows: 

(i) To prepare standard, domestic and imported classifications and 

specifications for the products of the Industry, which on approval 

of the Administrator, shall be binding on all members of the Industry in the purchase and sale of the products of the Industry. 

(4) 
5 

Modify Article VI by adaing Section 8 a.s follows : 

8. (a) The stanaards of fair competition for the Indu try with reference to pricing practices are declared to be as follows : 

(1) 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 sale price con.stitutes 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 five ( 5) days 

afford an opportunity to the member selling at such price to answer 

such complaint and shall within fourteen (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 National 

Recovery Administration which will render a decision thereon. 

(2) 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. 

(3) VVhen an emergency exists as to any given J?roduct, sale below 

the stated minimum price of such product, in Vlolation of Section 

(b) hereof, is forbidden. 

(b) Emergency Provisions.-(1) If the Administrator, 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 mitigrate 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 Administrator a determination of the stated minimum price of the 

product affected by the emergency and thereupon the Admini trator 

may proceed to determine such stated minimum price. 

(2) 'Vhen the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of such 

emergency and to effectuate the purposes of the National Indu trial 

RecoYery Act, he shall publi h such price. Thereafter, during such 

stated period, no member of the Industry shall sell such specified 

product at a net realized price below said tatecl minimum price and 

any uch sale shall be leemed destructive price cutting. From time 

to time, the Code Authority may recommend review or recon id ration or the Administrator may cause any determination hereunder 

to be reviewed or reconsidered and appropriate action taken. 

~1odify Article VI, by adding Section 9, as follows: 

9. Oost Finding.-The Code Authority shal cause to be formulated methods of cost finding and accounting capable of u e by all 

members of the Indu try, and sha.ll submit such metho l to the 

Administrator for review. I£ approved by the Administrator, full 
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information concerning such methods shall be made available to all 

members. of the Industry. Thereafter, each member of the I n'dustry 

shall utilize such methods to the extent found practicable. Nothing 

herein contained shall be construed to permit the Code Authority, 

any agent thereof, or any member of the Industry to suggest uniform 

additions, percentages or differentials or other uniform items of cost 

w~ich are designed to bring about arbitrary uniformity of costs or 

· pnces. 

Approved Code No. 298-Amendment No. L 

Registry No. 299-1-21. 

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