Approved Code No. 117-Arnendrnent No. 1 Registry No. 1399-33 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

GEAR MANUFACTURING 

INDUSTRY 

AS APPROVED ON JUNE 27, 1934 

UN IV. OJI· FL Lll. 

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App:troved Code No. 117-Amendment No.1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

GEAR MANUFACTURING INDUSTRY 

As Approved on June 27, 1934 

ORDER 

AMENDMENT TO ConE OF FAIR CoMPETITION FOR THE GEAR 

~1.ANUF ACTURIN G 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 an amendment to a Code of Fa.ir Competition for the Gear ~1anuf.acturing 

Industry, and as contained in a Pubhshed Notice of Opportunity to 

File Objections, Administrative Order No. 117-8, dated May 31, 

1934, and no objections having been filed as provided in said Published Notice; and t4e annexed report on said amendment, containing findings with respect thereto, having been made and directed 

to the President, • 

NOV\T: THEREFORE, on behalf of the Preside11t of the United 

States, I, Hugh S. Johnson, Administrator for Indtlstrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order 6548-A, dated December 30, 

1933, and otherwise do hereby incorporate, by reference, said annexed report and do 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 of 

said Title of said Act, and do hereby order that said amendment 

be and it is hereby approved, and that the previous approval of said 

Code is hereby amended to include an approval of said Code in its 

entirety as amended, such approval and such amendment to take 

effect ten (10) days from the date hereof, unless good cause to the 

contrary is shown to the Administrator before that time and the 

Administrator issues a subseque:nt order to that effect. 

HuGH S. JoHNSON, 

Administrator for Industrial Recovery. 

Approval recommended: 

BARTON w. MURRAY, 

Acting Division Administrator. 

WASHINGTON, D.C. 

June ~7, 1934. 

70248°----657-159----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: An application has been duly made pursuant to and in full 

compliance with the provisions of the National Industrial Recovery 

Act, for an Amendment to the Code of Fair Competition for the 

Gear Manufacturing Industry, submitted by the Code Authority for 

the said Industry. 

The existing provision of Article VII, Section 1 (b) of the Code 

:for said Industry, is entirely inadequate in view of Executive Order 

6678 and Administrative Order X-36, and it is therefore evident that 

the proposed amendment to Article VII of said Code, the provisions 

of which follow closely the text of the above mentioned Orders, 

will overcome the existing inadequate provisions. 

FINDINGS 

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

of all the proceedings in this matter: 

I find that: 

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

well designed to promote the policies and purposes of Title I of the 

National Industtial 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 restrictions of production (except as 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 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 Subsection (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) T~e amend~~nt and the Code as amended are not designed 

to and wlll not elunmate or oppress small enterprises and will not 

operate to discriminate against them. 

(2) 
3 

(e) Those engaged in other steps of the economic process have 

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

amendment. ~ 

For these rea on , therefore, I have approved tlus amendment, 

such approval and such amendment to take effect in ten (10) days, 

unless good cau e to the contrary is hown to me before that time and 

I issue a subsequent order to that effect. / 

Re pectfully, 

JUNE 27, 1934. 

HuaH S. JoHN oN, 

AdministJ·ator. 
• 

MODIFICATION TO CODE OF FAIR COMPETITION FOR 

THE GEAR MANUFACTURING INDUSTRY 

PURPOSE 

Pursuant t~ Article VII of the Code of Fair Competition for the 

Gear Manufacturing Industry, duly approved by the President on 

N oven1ber 14, 1933, and further to effectuate the policies of Title I 

of the National Industrial Recovery Act, the following modification 

is established as a part of said Code of Fair Competition and shall 

be binding upon every meniber of the Gear Manufacturing Industry. 

MoDIFICATION 

~fodify Article VII by deleting Section I (b) and substituting in 

lieu thereof the following : 

b. It being found necessary in order to support the administration 

of this Code and to maintain the standards of fair competition estab-

~ished hereunder and to effectuate the policy of the Act, the Code 

Authority is authorized, subject to the approval of the Administrator: 

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. 

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 all members of the Industry. 

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 such members of the Industry, and to that 

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

name. 

c. Each member of the Industry shall pay his or its equitable contribution to the expenses of the maintenance of the Code Authority 

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 shall be entitled to 

participat€ in the selection of the members of the Code Authority or 

to receive the benefit of its voluntary activities or to make use of any 

emblem or insignia of the National Recovery Administration. 

. d. The Code Authority shall neither incur nor pay any obligation 

1n excess of the amount thereof as estimated in its approved budget, 

except upon approval o£ the Administrator; and no subsequent 

(4) 
5 

bur rret hall contain any deficiency item for expenditures in excess 

of prior budget e imat~..., except tho-e which the .Admjnistrator hall 

have approved. 

e. Anv member of the Industry i eligible for member~h~p in the 

~ ·o iation and there hall be no inequitable restrictions on such 

member ·hip. 

_.\..ppro•etl Code ~-o. 117-Amemlm.ent J..-0. 1. 

Regi try ~ -o. 139~3. 

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