Approved Code No. 54-Amendment No.2 Registry No. 274-1-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

THROWING INDUSTRY 

AS APPROVED ON APRIL 19, 1934 

WE DO OUR PART 

UNITED STATES 

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WASHINGTON: 1934 

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Approved Code No. 54-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

THROWING INDUSTRY 

As Approved on April 19, 1934 

ORDER 

:MoDIFICATION OF CoDE oF FAIR CoMPETITIOX FOR THE THROWING 

INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Indu. trial 

Recovery Act, approved June 16, 1933, for approval of a modification of the Code of Fair Competition for the Throwing Industry, 

and the annexed report on . aid modification, containing findings 

with respect thereto, having been made and directed to the ~resident: 

NO\V, 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. G543-A, elated December 30, 

1933, and otherwise; do hereby incorporate, by reference, said annexed report and do find that said modification and the Code as 

constituted after being modified comply in all respects with the pertinent provisions and will promote the policy and purpo es of said 

Title of said Act, and do hereby order that said modification 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 modified, such approval and such modification to take effect 

ten days from the date hereof, unless good cause to the contrary is 

f'hown to the Administrator before that time and the Administrator 

issues a subsequent order to that effect. 

HuGHS. JoHNSON, 

Awrninist1·ator (o1· I ndustrial Recovery. 

ApproYal recommended: 

H. 0. KING, 

Division Aclministratm'. 

\V ASHINGTON, D.C., 

Ap,ril 1.9, 1934. 

53949°----482-109----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: The attached revision of Section 4 of the Code of Fair Competition for the Throwing Industry has been made primarily ·o that 

the administrative provisions of this code will conform with the 

standard provisions contained in more recently approved codes. 

The Code Adn1inistration Committee for the Throwing Industry 

originally submitted a provision providing only for the power to 

assess the industry for the cost of administering the code. A copy 

of their proposal was inserted in the weekly bulletin of the Throwsters Research Institute and sent to all members of the trade. This 

notice also stated that if anyone had any objections they should be 

filed in writing with the National Recovery Administration. No 

objections were received. 

As long as this amendnlent was being made to the code, it was 

thought advisable to revise the entire administrative section as previously mentioned. 

FINDINGS 

The Deputy Administrator in his final report to me on said modification of said Code having found as herein set forth and on the 

basis of all the proceedings in this matter : 

I find that: 

(a) The modification of said Code and the Code as modified are 

well de igned 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 and 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 purcha ing power, by reducing and relieving 

unemployment, by improving standards of labor, and by otherwise 

rehabilitating indu try. 

(b) The Code as modified complies in all respects with the pertinent provisions of said Title of said Act, including without limitation 

Subsection (a) of Section 3, Subsection (a) Section 7 and Subsection 

(b) of Section 10 thereof. 

(c) The Throwsters Research Institute was and i an industrial 

association truly representative of the aforesaid Industry and that 

(2) 
3 

said association imposed and imposes no inequitable restrictions on 

admission to membership therein and has applied for or consents to 

this modification. 

(d) The modification and the Code as modified are not designed 

to and will not permit monopolies or monopolistic practices. 

(e) The modification and the Code as modified 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 o:f the right to be heard prior to approval of said 

modification. 

For these reasons, this modification has been approved. 

Respectfully, 

Huon S. JoHNSON, 

A dmvinistrator. 

APRIL 19, 1934. 
AMENDMENT TO CODE OF FAIR CO:MPETITION FOR 

THE THROWING INDUSTRY 

The .present Section 4 shall be deleted from the Code and the 

Following Section inserted in its place. 

SECTION 4. Ad1rdnistration.-(a) To further effectuate the policies of the Act, a Code Administration Committee is set up to cooperate with the Administrator as a Planning and Fair Practice 

Committee for the Industry. This Committee shall consist of 

twelve members in addition to the President of the Throwsters 

Research Institute, Inc., who shall be chairman. The executive 

Secretary of the Throwsters Research Institute, Inc., shall serve as 

Secretary of the Code Administration Committee. There shall be 

at least one committee member chosen from each of the following 

groups of employers-commission throwsters of weaving yarns, commission throwsters of knitting yarns, rayon and/or cotton weavers, 

knitters, yarn dealers, and silk weavers. 

(b) The Administrator shall appoint an impartial member or 

members not to exceed three in number who shall have no vote but 

shall in all other respects be members of the said Code Administration Committee. 

(c) Employers shall be entitled to participate in and share the 

benefits of the activities of the Code Administration Committee and 

to participate in the selection of the members thereof by assenting 

to and complying with the requirements of this Code and sustaining 

their reasonable pro rata share of the expense of its administration. 

The reasonable share of the expense of administration shall be determined by the Code Administration Committee on the basis of 

volume of business andjor such other factors as may be deemed 

equitable and pro rated among all members, subject to approval by 

the Administrator. These funds shall be collected by and paid to 

the Code Administration Committee or its duly constituted agency 

for that purpose. Such funds shall be deposited in a special account 

and used only to defray the expense of administering this Code 

under the direction of the Code Administration Committee. 

In voting for the Code Administration Committee each employer 

in this Industry, complying with the above requirements, shall have 

one vote for each 5000 spindles or fraction thereof operated by him 

and registered with the the Code Administration Committee. 

(d) Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Administration Committee shall (1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of .its articles of association, by-laws, regulations, and any amendments when 

made thereto, together with such other information as to membership, organization and activities as the Administrator may deem 

necessary to effectuate the purposes of the Act. 

(4) 
5 

(e) In order that the Code Administration Committee shall at 

all times be truly representative of the Industry and in other respects 

cm~ply with the.provision of the Act, the Administrator may prescribe such heanngs as he may deem proper; and thereafter if he 

shall fin~ that the Code. Administration Committee is not truly representative or does not In other respects comply with the provisions 

of the Act, may require an appropriate modification in the method 

of selection of the Code Administration Committee. 

(f) Nothing contained in this Code shall constitute the members 

of the Code Administration Committee partners for any purpose. 

Nor shall any member of the Code Administration Committee be 

liable in any manner to anyone for any act of any other member, 

officer, agent or employee of the Code Administration Committee. 

Nor hall any member of the Code Administration Committee 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 misfeasance or non-feasance. 

(g) If the Administrator shall determine that any action of the 

Code Administration Committee or any agency thereof is unfair or 

unjust or contrary to the public interest or to the Act, the Administrator may require that such action be suspended to afford an opportunity for investigation of the merits of such action and further 

consideration by said Code Administration Committee or agency 

pending final action which shall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty 

days notice to him of intention to proceed with such action in its 

original or modified form. 

(h) The Code Administration Committee shall have the following 

further powers and duties: 

(1) To insure the execution of the provisions of this Code and to 

provide, subject to rules and regulations <:>stablished by the Administrator, for the compliance of the industry with the provisions of 

the Act; Provided, however, that this shall not be construed to deprive duly authorized goverrunental agencies of their power to 

enforce the provisions of this Code or of the Act. 

(2) To adopt by-laws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

(3) To use such trade associations and other agencies as it deems· proper for the carrying out of any of its activities provided for 

herein, provided tha.t nothing herein shall relieve the Code Administration Committee of its duties or responsibilities under this Code 

and that such trade associations and agencies shall at all times be 

subject to and comply with the provisions hereof. 

( 4) To secure from members of the Industry an equitable and 

proportionat~ payment of the reasonable expenses of maintaining 

the Code Administration Committee and it.c; activities. 

( 5) To cooperate with the Administrator in regulating the use of 

any National Recovery Administration Code Insignia solely by those 

members of the industry who are complying with this Code. 

( 6) Based on conditions in the industry as they may develop, the 

Code Administration Committee shall present to the Administrator 

recommendations which will tend to effectuate the operation of the 
6 

provisions of thi Code and the policies of the Act, and in particular 

along the following lines: 

No. 1. Recomm2ndations that it shall be within the power of the 

Code Administration Committee to further limit the machine hours 

after a trial period of 90 days if in its judgment, and upon the operating record received, it shall have become apparent that the resulting produc6on is in excess of the needs of those ·who· supply material 

for processing by the Throwing Industry, and further thereafter to 

restorf' or amend such machine hours as mav from time to time become necessary. This provi ion for flexibility is essential for the 

Throwing Industry because it has no command over volume, bejng 

wholly dependent upon the demands and needs of the weaving, knitting and allied trades. This provision shall not apply to throwing 

machinery provided the yarn thrown thereon is for the employers' 

own use only in their own plant , and operating under the Code of 

Fair Competition for the Cotton Textile Industry. 

No. 2. Recommendations that each employer who may wish to 

purchase or build throwing machinery, and any individuals or corporations de iring to establish plants of throwing machinery, may 

do so only after having procured from the Administration permission for such purchase or erection or for such establishment of plants; 

and the Code Administration Committee is hereby empowered to act 

as the agent of the Administration to receive applications for such 

permissions and to recommend the granting or withholding of same; 

and it shall be the duty of the Code Administration Committee in 

such proceeding to furnish the National Recovery Administration 

with a full and duly authenticated statement of the facts upon which 

its recommendation is based. 

No. 3. Recommendation by the Code Administration Committee 

after study of the number of spindles to be operated by an employee 

on different classes of yarn upon the feasibility of establishing standards, to be reported to the National Recovery Administration. 

Such recommendations, when approved by the Administrator, 

shall have the same force and effect as any other provisions of 

this Code. 

Approved Code No. 54-Amendment No.2. 

Registry No. 274-1--01. 

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