Approved Code No. 277-Amendment No.2 Registry No. 1111-04 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

GRAY IRON FOUNDRY 

INDUSTRY 

AS APPROVED ON NOVEMBER 1, 1934 

u. 

WE DO OUR PAR1" 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

W ASillNGTON: 1934 

t I 

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Approved Code No. 277-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GRAY IRON FOUNDRY INDUSTRY 

As Approved on November 1, 1934 

ORDER 

APPROVING AMENDMENT OF CoDE oF FAIR CoMPETITION FOR THE GRAY 

IRON FOUNDRY INDUSTRY 

An application having been duly made pursuant to and in :full 

compliance with the provisions o:f Title I o:f the National Industrial 

Recovery Act, approved June 16, 1933, :for approval o:f an amendment to a. Code o:f Fair Competition :for the Gray Iron Foundry 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: 

NOvV, THEREFORE, on behalf o:f the President o:f the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders o:f the President, 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 o:f said title o:f said act, and 

does hereby order that said amendment be and it is hereby approved, 

and that the previous approval o:f said Code is hereby amended to 

include an approval o:f said Code in its entirety as amended. 

NATIONAL INDUSTRIAL REcOVERY BoARD, 

By W. A. HARRIMAN, Administrative Officer. 

Approval recommended: 

B ARTON w. MURRAY, 

Division Adrninistrator. 

WASHINGTON, D. c., 

N ove1nber 1, 1934. 

95086°----1325- 8----84 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on an amendment to the Code of Fair Com- petition for the Gray I ron Foundry I ndustry, the Code having been 

approved by your Order of February 10, 1934. 

Notice of Opportunity to be Heard on this amendment was duly 

posted to all intere ted parties providing an opportunity to file objec- tions, and one objection was received which was given due consid- eration. 

The Code is amended to incorporate the model Price Filing P ro-

-vi ion and the De tructive Price Cutting Provision. 

FINDINGS 

The As i tant Deputy Admini trator in his final report to the 

National Industrial Recovery Board on said amendment to said Code 

havina found a herein et forth and on the basis of all the proceedings in this matter : 

It is found that: 

(a) The amendment to said Code and the Code a amended are 

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

National Industrial Recovery Act including the removal of ob truc- tions 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 indu try for the purpose of 

cooperative action of labor and management m1der adequate governInental sanction and supervi ion, by eliminating unfair competitive 

practices, by promoting the fullest pos ible utilization of the present 

producti\e capacity of industrie by avoiding undue re triction of 

production (except as may be temporarily required), by increasing 

the consumption of indu trial and agricultural products through in- creasing purcha ing power, by reducing and relieving unemployment, 

by improving tan lard of labor and by otherwise rehabilitating 

industry. 

(b) The Code a amended complie in all respects with the pertinent provi ·ions of aid Title of aid Act, including without limita- tion . ub-section (a) of Section 3 ub-section (a) of Section 7 and 

ub- ection (b) of Section 10 thereof. (c) The Code empower the Code Authority to pre ent the afore- ·aid amendment on behalf of the I ndustry as a whole. 

(d) The amendment and the Code as amended are not de igned 

to and will not permit monopolie or monopoli tic practice . (e) The amendment and the Code a amended are not designed to 

and will not eliminate or oppre small enterpri ·es and will not 

operate to di criminate again t them. 

(2) 
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(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of . aid 

amendment. 

Therefore, for the e rea on . . thi · amendment ha been approYed. 

For the National Inclu trial Recovery Board: 

NoYEMnER 1, 1934. 

'v. A. HARRil\IAN , 

fldmini ·t1·atil'e Office?'. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

THE GRAY IRON FOUNDRY INDUSTRY 

Amend Article VI, Section 1 by adding thereto the following SubSection (9) : 

(9) If 75 % of the members and of the tonnage of members of any 

agency or any territorial subdivision pr product classification, hereafter referred to as " Group", formed in accordance with the provisions of Section 2 of Article III so desires, each member of the 

Industry manufacturing products falling within such subdivision or 

classification shall, within ten (10) days after notice of such determination, file with the agency price and all other terms and conditions of sale with respect to such products in accordance with the 

following section : 

(a) Each member of the grpup shall file with a confidential and 

disinterested agent of the Code Authority identified lists of all of 

his prices, discounts, rebates, allowances and all other terms or con- ditions of sale, hereinafter in this article referred to as "price 

terms", which list hall compl,etely and accurately conform to and 

represant the in lividual pricing practices of said member. Such li ts 

shall contain the price terms for all such standard products of the 

group 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 Authority. Said price terms shall in the fir t in tance be filed 

within thirty (30) days after the date of approval of this provision. 

Price term and revi ed 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 

1neans notify said member of the time of such receipt. Such lists 

and revi ions, together with the effective time thereof, shall upon receipt be immediately and simultaneou ly distributed to all members 

of the group, and to all of their cu tamers who have ar plied 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 revi ions or any part thereof shall not be made 

available to any person until released to all members of the group 

and their customers, a aforesaid; provided, that prices filed in the 

first instance shall not be released until the expiration of the aforesaid thirty (30) day period after the approval of this provision. 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 Administrator. Upon request the Code Authority shall furnish to the Administrator or any 

duly designated agent of the Administrator copies of any such lists 

or revisions of price terms. 

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

member shall not file a higher pnce within forty-eight ( 48) hours. 

(4) 
5 

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

and/or services of the group for which price terms have been filed 

pursuant to the provisions of this Article, except in accordance with 

such price terms. 

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

understanding, combination or conspiracy to fix or maintain price 

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. 

Amend Article VI by adding thereto the following Sections 2 

and 3. 

SECTION 2. The standards of fair competition for the indu. 'try 

with reference to pricing practices are declared 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 price 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 com.plaint, 

all papers shall be referred to the Research and Planning Division 

of NRA 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 coste:: 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. 

SECTION 3. E7rWTgency Provisions.-(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 in1partial 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 National Industrial Recovery Board may proceed to 

determine such stated minimum price. 

(b) When the National ~ndustrial Recovery Board 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 Industrial Recovery Act, it shall publish such price. 
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Ill II 1111111/~mlli /1/ii'IJffli filii/ 1/1/1~ i~li /Ill IIIII 

3 1262 08856 0544 

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 ale 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 cau e any determinations hereunder to be reviewed or 

reconsidered and appropriate action taken. 

Approved Code No. 277-Arnendment No. 2. 

Registry No. 1111-04. 

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