Approved Code No. 330-Supplement No. 1 Registry No. 1632-31 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

WASTE PAPER TRADE 

(A Division of the Scrap Iron, Nonferrous 

Scrap Metals, and Waste Materials Trade) 

AS APPROVED ON JULY 12, 1934 

WE 00 OUR PART 

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U.I. DEP~TOAY _J 

UNITED STATES 

GOVERNMENT PRINTING OFFICB 

W ASIDNGTON: 1934 

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Approved Code No. 330-Supplement No. 1 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

WASTE PAPER TRADE 

As Approved on July 12, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE w ASTE p APER 

TRADE 

A DIVISION OF THE SCRAP IRON, NONFERROUS SCRAP METALS AND WASTE 

MATERIALS TRADE 

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 a Supplemental Code of Fair Competition for the Waste Paper Trade to the 

Code of Fair Competition for the Scrap Iron, Nonferrous Scrap 

Metals and Waste Materials Trade, and hearings having been duly 

held thereon and the annexed report on said Supplemental Code1 containing findings with respect thereto, having been made and 

directed to the President. 

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

States, I, Hugh S. Johnson, Administrator :for Industrial Recovery, 

pursuant to authority vested in me by executive Orders o:f the President, including Executive Order No. 6543-A, dated December 30 

1933, and othe.rwise; do hereby incorporate by reference said annexed 

report and do find that said Supplemental Code complies 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 

Supplemental Code of Fair Competition be and it is hereby approved. 

Approval recommended: 

R. L. HOUSTON, 

HUGH s. JOHNSON' 

Admj,nistrator for Industrial Recovery. 

Division Administrator. 

WASHINGTON, D.C. 

July 12, 1934, 

73333 9-829-47-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR: The Hearing on the Supplemental Code of Fair Competi- tion for the Waste Paper Trade,.a division of the Scrap Iron, Nonferrous Scrap :Metals and W a.ste ~1aterials Trade, was held in the 

Willard Roon1 of the Willard Hotel on May 14, 1934. The Supplemental Code which is attached was presented by the Code Authority in accordance with your Executive Order of March 12, 1934, 

approving the Code for the Scrap Iron, Nonferrous Scrap Metals 

and Waste ~Iaterials Trade. 

In accordance with the customary procedure everyone present 

who had filed a request for an appearance was freely heard in public, and all statutory and regulatory requirements were complied 

with. Provisions o:f the Supplemental Code were approved by the 

Industrial Advisory Board, Labor Advisory Board, the Legal Division, and the Division of Research and Planning. 

CONDITIONS IN THE TRADE 

The Trade consists of some 5,000 dealers enga.ged in supplying 

various grades of waste paper chiefly to paperboard mills. The 

consumption of waste pa.per varies with the seasonal demand for 

paperboard, which usually reaches a peak in March or April and 

again in Oct-Ober. 

During the present off-season in this line of Trade, it is believed 

that this Supplemental Code may provide means to stabilize con- ditions in such cases where destructive price cutting has brought 

about unfair competition. 

FINDINGS 

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

of all the proceedings in this matter; 

I find that-

(a) Said Supplemental Code is well designed to :promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, including 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 trade for the purpose of cooperative action a.mong 

the 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 use of the present productive ca,Pacity of 

industries, by avoiding undue restriction of production ( except as 

(2) 
3 

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 Supplemental Code as approved 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. 

( c) Your Executive Order of March 12, 1934, approving the Code 

of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals 

and Waste Materials Trade empowers the Code Authority for the 

"Waste Paper Trade" to present the aforesaid Supplemental Code 

on behalf of the Trade as a whole. 

( d) The Supplemental Code is not designed to and will not 

permit monopolies or monopolistic practices. 

( e) The Supplemental Code is 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 of the right to be heard prior to the approval of 

this Supplemental Code. 

For these reasons the Supplemental Code has been approved. 

Respectfully, 

JULY 12, 1934. 

HUGH s. JOHNSON, 

Administrator. 
• 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE WASTE PAPER TRADE 

A DIVISION OF THE SCRAP IRON, NONFERROUS SCRAP METALS AND WASTE 

MATERIALS TRADE 

ARTICLE I-PURPOSES 

To e:ff ectuate the policies of Title I of the National Industrial 

Recovery Act, this Supplemental Code is established as a Code of 

Fair Competition for the Waste Paper Trade pursuant to the Executive Order of ~1arch 12, 19-34, approving the Code of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals and Waste ~Iaterials Trade. All provisions of the Code of Fair Competition for 

the Scrap Iron, Nonferrous Scrap Metals and Waste Materials 

Trade, which are not in conflict with the provisions of this Supplemental Code, are hereby incorporated by reference in this Supplemental Code and made a part hereof. Such provisions of the Code 

of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals 

and Waste :Materials Trade, together with the supplementing provisions of this Code, are the standards of fair competition for and are 

binding upon every member of the Waste Paper Trade. 

ARTICLE II-ADMINISTRATION 

SECTION 1. The Code Authority may delegate any of its powe1·s 

to such regional or subsidiary committees as it may deem necessary; 

each such committee to be representative of the several groups comprising the Waste Paper Trade in its region or division. 

SECTION 2. The Code Authority shall appoint a committee to make 

recommendations to the Administrator for the coordination of the 

Administration of this Supplementary Code with such other Codes 

as may be related to or affect the members of this Trade. 

SECTION 3. The Code Authority shall have the following powers 

and duties to the extent permitted by the Act: 

(a) Each member of the Trade shall keep accurate and complete 

records of its transactions in the Trade whenever such records may 

be required under any of the provisions of this Supplemental Code, 

and shall furnish accurate reports based upon such records concerning any of these activities when required by the Code Authority or 

the Administrator. If the Code Authority or the Administrator 

shall determine that substantial doubt exists as to the accuracy of 

any such report, so much of the pertinent books, records and papers 

of such member as may be required for the verification of such report 

may be examined by an impartial agency, agreed upon between the 

Code Authority and such member, or in the absence of agreement, 

appointed by the Administrator. In no case shall the facts disclosed by such examinations be made available in identifiable form 

(4) 
5 

to any competitor, whether on the Code Authority or otherwise, or 

be given any other publication, except such as may be required for 

the proper administration or enforcement of the provisions of this 

Supplemental Code. 

In addition to information required to be submitted to the Code 

Authority, members of the Trade subject to this Supplemental Code 

shall furnish such statistical information as the Administrator may 

deem necessary for the purposes recited in Section 3 (a) of the .A.ct 

to such federal and state agencies as he may designate; provided that 

nothing in this Supplemental Code shall relieve any member of the 

Trade of any existing obligations to furnish reports to any governn1ent agency. 

(b) To investigate, subject to such rules and regulations as the 

Administrator may prescribe, alleged violations of the provisions of 

this Supplemental Code and require any members of the Trade to 

furnish reports pertinent to any complaint against such member. 

( c) To describe and define the various grades and types of waste 

paper for the purpose of this Supplemental Code subject to the 

approval of the Administrator. Immediately after approval by the 

Administrator, the Code Authority shall distribute such determinations among the members of the Waste Paper Trade. 

SECTION 4. (a) It being found necessary in order to support the 

administration of this Supplemental Code and to maintain the 

standards of fair competition established hereunder and to effectuate 

the policy of the .A.ct, 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 Supplemental 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 

Trade. 

(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 Trade, and to 

that end, if necessary, to institute legal proceedings therefor in its 

own name. 

(b) Each member of the Trade 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 Trade complying with the Supplemental Code and contributing to the expenses of its administration as hereinabove provided, 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 inc_ur nor pa~ any obligation in excess of the amount thereof as estimated m its approved 

budget, except upon approval of the Administrator; and no subse-
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quent budget shall contain any deficiency item for expenditures in 

excess of prior budget estimates except those which the Administrator 

shall have so approved. 

ARTICLE III- TRADE PRACTICES 

SECTION 1. No member of the Waste Pa per Trade shall designate 

the various types and grades of waste paper in any other manner than 

the manner determined by the Code Authority under Article I I, Section 3 ( d) above. 

SECTION 2. No member of the Waste Paper Trade shall employ any 

subterfuge, to avoid or attempt to avoid the provisions of this Code 

or the purposes and intent of the National Industrial Recovery Act. 

ARTICLE IV- EMERGENCY P ROVISIONS 

SECTIO:N" 1. If the Administrator, after investigation shall at any 

time find both (1) that an emergency has arisen within the Trade 

adversely affectmg small enterprises or wages or labor conditions, 

or tending toward monopoly or other acute conditions which tend to 

defeat the purposes o:f the Act; and (2) that the det€rmination o:f 

the stated minimum price :for a specified product within the Trade 

: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 Administrator a determination of the stated 

minimum price o:f the product affected by the emergency and there1;1pon the_ Administrator may proceed to determine such stated minimum price. 

SECTION 2. "'\-Vhen the Administrator shall have determined such 

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

which price shall be reasonable calculated to mitigate the conditions 

o:f such emergency and to effectuate the purposes o:f the National 

Industrial Recovery Act, he shall publish such price. Thereafter, 

during such stated period, no member of the Trade 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 Administrator may cause any determinations 

hereunder to be reviewed or reconsidered and appropriate action 

taken. 

ARTICLE V- CosT AccouNTING 

The Code Authority shall cause to be formulated methods of cost 

finding and accounting capable of use by all members o:f the Trade, 

and shall submit such methods to the Administrator for review. If 

approved by the Administrator, full information concerning such 

methods shall be made available to all members of the Trade. Thereafter, each member of the Trade 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 o:f the Trade to suggest uniform additions, percentages of differentials, or other uniform items of cost which are designed to bring 

about arbitrary uniformity of costs or prices. 
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ARTICLE VI-MODIFICATIONS 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President in accordance with the 

provisions of Sub-Section 10 (b) of the Act, :from time to time to 

cancel or modify any order, approval, license, rule or regulation issued under Title I of said Act. 

SECTION 2. Such other provisions of this Supplemental Code as 

are not required to be included herein by the Act may, with the approval of the Administrator, be modified or eliminated in such manner as may be indicated by the needs o:f the public, by changes in 

circumstances, or by experience. All the provisions of this Supplemental Code, unless so modified or eliminated, shall remain in effect 

until June 16, 1935. 

ARTICLE VII-MONOPOLIES 

No provision of this Supplemental Code shall be so a pp lied as to 

permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. 

ARTICLE VIII-EFFECTIVE DATE 

This Supplemental Code shall become effective immediately upon 

its approval by the Administrator. 

Approved Code No. 330-Supplement No. 1. 

Registry No. 1632-31. 

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