Approved Code No. 209-Amendment No. 1 Regi try No. 1640-06 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

MUSICAL MERCHANDISE 

MANUFACTURING INDUSTRY 

AS APPROVED ON JANUARY 31, 1935 

WE DO OUR PART 

UNITED STATES 

GO VERI~ lENT PRh rTING OFFICE 

WASHINGTON: 1935 

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Approved Code No. 209-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THii: 

MUSICAL MERCHANDISE MANUFACTURING 

INDUSTRY 

As Approved on January 31, 1935 

ORDER 

A rrnonNG Al\IENDl\fEN T OF CoDE OF F AIR Col\IPETITION FOR THE 

~I u IC.AL M :EnCH.ANDI E ~fA.NUF A T RING I ND TRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National I ndustrial 

Re"overy Act, approved J une 16, 1933, for approval of an Amendment to a ode of F air Competition for the ~Iusical ~Ierchandi ·e 

~1anufacturing Inclu try, and hearings having been duly held thereon 

and the annexed report on said Amendment, containj ng finding. with 

respect thereto, having been made and directed to the President : 

NO\V THEREFOR.E, on behalf of the President of the United 

tate the National Indu trial Recovery Board, pur uant to authority ve ted in it by Executive Or ler of the Pre i :lent, inclu ling 

Executive Order No. 6 ~g and other\\'ise, doe hereby incorporate, 

by reference, said annexed report and does find that aid Amendment and the Code a constituted after being am_ended comply in 

all re pect with the pertinent provi ·ion and \\'ill promote the policy 

and purpo e of aid Title of said Act, and doe. hereby order that 

·ail Amendment be and it is hereby approved and that the previous 

approval of aid Code as amend d i · hereby rnodifiecl to include an 

approval of said Code in its entirety a amended, provided howev r, 

that the phra e "within six month. after the effective date o£ the 

ode be deleted, an l the phra~e " on or before ~lay 1, 1935 be 

·ub tituted in Section 4 of Article Y, line 5 nch approval and uch 

Amenclnv'•nt to tak effect h\enty (20) clay from the late hereof, 

nnle. · · o· 1 cau e to the ontrary is hown to the National In lu ·trial 

Recovery ard before that time and the National Indu trial Recovery Board i ·u . a . nb~ quent order to that effect. 

NATIONAL Ixo .... TniAL REcovr:nY B no, 

By " ' · -!"\... H .·\ RRDrAN, .. .ldmini.._r:;trai'ive Offic r. 

~ PI rovnl re ommen le l : 

_,..ILBOrhXE ,J II ~ TO ... T, 

.. J ting Dh•i. ion ~ldmini f1'ator. 

\YA. nr..-,T<X, ., 

Ja11UOJ',1J 31, 193 -. 

1123~7 ----1370-7----0~ (1) 
• 

REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. SIR: An application has been duly made, pursuant to and in full 

compliance with the provisions of the National Industrial Recovery 

Act, for an Amen elm en t to the Code of Fair Competition for the 

Musical :Merchandise Manufacturing Industry, submitted by the 

said Industry through its Code Authority. 

On September 24, 1934, a public hearing was held in Wa hington, D. C. Every person who requested an appearance w~s properly 

heard in accordance with statutory and regulatory r equirem nts. 

The Amendment was revised during the rece and submitted in its 

present form for approval. 

The Amendment incorporate certain standard clauses, including 

the mandatory assessment provisions, together with certain necessary 

fair trade provisions. 

The Deputy Admini trator in his final report on said Amen lment 

to said Code having found as herein set forth and on the basis of all 

the proceedings in this matter: 

It is found that: 

(a) The Amendment to aid Code and the Code as amended are 

w ll 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 

t end 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 utilization of the present productive capacity of the 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 industry. 

(b) The Code as amended 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 

Sub ection (b) of Section 10 thereof. 

(c) The Amendment and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

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

to and will not eliminate or oppress small enterprises and will not 

operate to discriminate against them. 

(2) 
3 

(e) Those eno·aaed in other teps of th econonJic process have 

not been deprive of the right to be heard prior to approv.al of ·aid 

Amendment. For the e rea ·on , therofore, this Amem.ment hns been approved. For the N ati nal Industrial Recovery Board: 

J ANUARY 31, 1935. 

\V. A . HARRIMAN, 

Ad1ninistrative Otfice1'. 
A~fEND~fENT TO CODE OF FAIR CO~IPETITION FOR 

THE MUSICAL MERCHANDISE ~1ANUF ACTURING 

INDUSTRY 

1. Delete period at the end of Section 2, Article II and substitute 

comma and add the following : 

"ancljor the original sale thereof by a member of the Industry." 

2. Substitute as Section 3 of Article II. 

The term "m.ember of the Industry" as used herein includes but 

without limitation, any individual, partner hip, association, corporation or other form of enterpri e engaged in the Industry, either as 

an employer or on his or its own behalf. 

3. Change Section 3, 4, 5, and 6 to Section. 4, 5, 6, and 7. 

4. Substitute for Section 6, Article III, the following : 

SECTION 6. No employer shall knowingly permit any employee to 

work for any time which, when added to the time spent at work for 

another employer or employers in this Indu try, exceed the maximum permitted herein. 

5. Substitute for Section 4, Article IV the following: 

SECTION 4. A per on \Yho e earning capacity is limited because of 

age, physical or mental handicap, or other infirmity, may be employed on light work at a wage bolow the minimum e tabli heel by 

this Code if the employer obtains from the State Authority designated by the United States Department of Labor a certificate author- izing uch person's employment at such wage and for such hour as 

shall be stated in th certificate. Such authority hall be guided by 

the instructions of the United States D partment of Labor in issuing 

certificates to uch person. . Each employer shall file monthly with 

the Code Authority a list of all . uch per.-ons employed by hi111, 

8howing the wages paid to, and the maximum hour of work for such 

employee. 

6. Substitute for Section 4 of Article V, the following: 

SECTION 4. Standm,ds fo1· Safety ancl H ealth.-Each employer 

hall provide for the safety and health of employee · during the 

hours and at the places of employment. Standarls for safety and 

health shall be ubmitt d by the Code Authority to the National 

Industrial Recovery Board within ix months after the eftective elate 

of the Code. 

7. Sub. titute for Section 7 of Article V, the following: 

SECTION 7. Posf'ing.-All employers hall post and keep posted 

copies of this Code in conspicuous places acce sible to all employee . Every member of the Industry sh all comply with all rules and regulations relative to the posting of provisions of Codes of Fair Competition which may from time to time be pre crilncl by the National 

Industrial RecoYery Boar l. 

(4) 
5 

8. A ld to Article V a new Se tion 8 to read as follows: 

SE TION 3. No emplo. shall be di cl arge l, demoted or otherwise 

discriminated ao·ainst by r a on of making fl complflint or giving 

evidence with respect to an alleged violation of thi Cod . 

9. Renumbe1· Section 7, Article VI to ection 9, Article VI. 

10. I n£ert as new Section 7, Article VI the followino·: 

SECTION 7. I f the National Industrial Recovery Board shall at 

any time determine that any action of a Cole Authority or any 

AO'ency thereof, may be unfair or unjust or contrary to the public 

interest, the National Industrial Recovery Board may requiTe that 

su h action be u pended to afford an opportunity for investigation 

of the merits of such action and further con icleration by such Code 

Authority or Agency pending final action which shall not be effective 

unless the National Industrial Recovery Boar l approves or unle s it 

shall fail to disapprove after thirty (30) days notice to it of intention 

to proceed with such action in its original or modified form. 

11. Insert as Section 8 to follow the new Section 7 of Article VI 

t he following : 

The Code Authority may incorporate under the laws of any State 

of the United States or of the District of Columbia, or may as ume or 

adopt such existing corporate form under any of such laws as it may 

deem appropriate for the proper performance, as and from the eff ctive date, of its activities, powers and duties hereunder, such corpor ation or corporate form to be not for profit and to be known as 

the Musical Mer chandise Manuf acturing I ndustry Code Authority, 

Inc. ; provided that the powers, duties, objects and purpo es of the 

said corporation shall, t o the satisf action of the National I ndustrial 

Re-covery Board, be limited to the powers, duties, objects and pnrposes of the Musical Merch andise Manuf acturing Industry Code 

Authority as provided in this Code; provided furt her, that the existence of the said corporation shall be during t he term of the Code; and 

provided further, that the certificate of incorporation and by-laws 

shall be subject to the disapproval of the National Industrial 

Recovery Board. 

12. Substitute for subsection (h) of the present Section 7 of Article 

VI, the following: 

(1) It being found necessary in order to support the administration of this Code and to maintain the standards of fair competition establish hereunder and to effectuate the policy of the Act, 

the Code Authority is authorized: 

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

proper for the foregoing purposes, and to meet such obligations out 

of fund which may be raised as hereinafter provided and which 

shall be held in tru t for the purposes of the Code. 

(b) To submit to the National Industrial Recovery Board for it 

approval, subj ect to ·u ·h notice and opportunity to be heard as it 

may deem nee ssary (1) an itemized budget of its estimated expen e: 

for the foregoing purposes, and (2) an equitable basis upon whi h 

the funds neces ary to support such bu lget hall be contribut d by 

members of the Indu try. ( ) A fter such bu lget and ba is of ontribution have been approved by the National Industrial Recovery Board, t o d t rmin 

and obtain equitable contribution as above et forth by all memb r. 
llllllllllmllliill~llif 111111 ~~~~ 111 limiil'iflillllllll\11 

6 3 1262 08728 5796 

of the Industry 1 rtnd to that end, if nece sary, to in. titute legal 

proceeding. therefor iu Its O\Vn name. 

(2) Each member of the Indu try shall pay his or its equitable 

conb·ibution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subje t to rules 

and regulations pertaining thereto issued by the N" ational Industrial Recovery Boar l. Only member of tlie Indu ·try complying 

with the Code an l contributing to the expenses of its administration 

a hereinabove provi led ( unle.'S duly exempted from making such 

contribution) shall be entitled to participate in the seledion of 

members of the Code Authority or to r ceive the benefit of any of 

its voluntary activitie. or to make u ·e of any emblem or insignia 

of the National Recovery Administration. 

(3) The Code Authority ball neither incur nor pay any oblig~­

tion substantially in exces. of the amount thereof as e timated in 

it approYed budget, and shall in no event exceed the total amount 

contained in the appro\ eel budg t, ex ept upon approval of the N' ational Industrial R covery Boar l; and no subsequent bu lget shall 

contain any deficiency item for expenditure - in excess of prior budget 

estimate · except tho e which theN ational Industrial Recovery Board 

hall have o approved. 

13. Strike out present Sub ection (i) of the former Section 7 of 

Article VI and re-letter 'ub ·ection (j) to (i) and ad 1 thereto the 

following sentence: 

Such amendment if approved by theN ational Industrial Re overy 

Board, shall become ffe ·tive a. a part of thi · Code and be binding 

upon every member of the Indu ·try. 

14. To Article VII, a ld the following ection : 

SEcTION 12. T erm_ of Sale.-(a) The maximum credit term applying to all ale by a member of the Inclu try to dome tic jobbing 

or wholesale eli. tributor or to manufacturer . hall be 

(1) All invoice· hall be due and payable net, not later than thirty 

(30) days from the end of the month of ale, and no more favorable 

allo"·ance than 2 ~ for ca. h hall ba allowed for prompt payment, 

provided that uch payment hall be presented or mailed on or before 

the tenth (lOth) of the month following ale. 

(b) The following uniform term hall apply to allowance and 

the acceptance of return of merchandise from domestic jobbing or 

whole ale di tributor or manufacturer : 

( 1) No merchandi e shall be accepte l for credit, except in the case 

of factory defect or error , delay in hipments or non-conformance 

with order . No claim. for factory d.afective merchandi e shall be 

adjusted by the allo'\\ance of any eli count or rebate. 

(2) No merchan li e which ha · be n damaged in tran it hall be 

accepted for credit, nor ·hall credit clellnctions be permitted becau e 

of uch damage. 

Approved Code 1\'n. 20!)-A.menclment No. 1. 

Registry No. 1640- 0G. 

0