Approved Code No. 13-Amendment No.2 Registry No. 1657-1-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO { 

CODE O·F FAIR COMPETITION 

FOR THE 

FISHING TACKLE INDUSTRY 

AS APPROVED ON MARCH 21, 1934 

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WASHINGTON: 1934 

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Approved Code No. 13. Amendment No.2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

FISHING TACKLE INDUSTRY 

As Approved on March 21, 1934 

ORDER 

AMENDMENTS To CoDE OF FAIR CoMPETITION FOR THE FrsHING 

TACKLE 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 amendments to 

a Code of Fair Competition fo:r the Fishing Tackle Industry, and 

hearings having been duly held thereon and the annexed report on 

said amendments, containing findings with respect thereto, having 

been made and directed to the President, 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. J ohnson, Administrator for Industrial Recovery, 

pursuant to the authority ve3ted in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate, by reference, said 

annexed report and do find that said amendments 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 amendments be and 

they are hereby approved, and that the previous approval of said 

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

entirety as amended. 

Approval recommended: 

GEO. L. BERRY, 

HuGH S. JoHNSON, 

Administrator for Industrial Recovery. 

Division Administ1·ato1·. 

WASHINGTON, D.C., 

March 21, 1934. 

47771°----425--108----34 (1) 
REPORT TO THE PRESIDENT 

The PRESII>ENT, 

The White House. 

I TRODUCTION 

SIR: This is the report of the Administrator to the President on the 

application for, and public hearing on, certain amendments to the 

Code of Fair Competition for the Fishing Tackle Manufacturing 

Industry as proposed by the Fishing Tackle Industry Code Committee 

(the Code Authority). The hearing was conducted in Washington on 

February 14, 1934. Every person who requested an appearance was 

fully heard in accordance with statutory and regulatory requirements. 

The amendments to Article III, Section 1, are intended to relax the 

present provision of the Code with regard to sales below cost and to 

implement the new provision in the light of actual experience of the 

past six months. It is apparent that the labor provisions have tended 

to effectuate the purposes of the Act by "reducing unemployment and 

improving standards of labor" in that employn1ent has gained by 

over 15% and payrolls by about 30%, but meanwhile the competitive 

conditions in the industry have not improved as a result, at least in 

part, of the failure of some manufacturers to give proper consideration 

to increased costs. 

The amendments to Article III, Sections 2 and 3, and a new Section 

7, are intended "to eliminate unfair competitive practices", princi- pally by clarifying the original provisions. 

The proposed new Section 7 to Article IV is a provision now stand- ard but unknown at the time this Code was approved last August 19. 

I tis notable that all of the amendments have been submitted to and · endorsed by the Industry as well as by the Code Committee. I believe that all of the proposals are fair and will tend to in1prove conditions in the Industry and to effectuate the policiAS of the Act. 

FINDL GS 

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

of all the proceedings in this rnatter: 

I find that: 

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

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

National Industrial Recovery Act including the removal of ob tructions 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 elinlinating unfair competitive practices, 

(2) 
3 

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 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 Sub~ection (b) 

of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the aforesaid 

amendment on behalf of the industry as a whole. 

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

and will not permit monopolies or monopolistic practices. 

(e) The amendments 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. 

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

been deprived of the right to be heard prior to approval of said amendments. 

For these reasons the amendments have been approved. 

Respectful] y, 

MARCH 21, 1934. 

HuGH S. JoHNSON, 

Administrator. 
AMENDlviENT TO CODE OF FAIR COMPETITION FOR 

THE FISHING TACKLE INDUSTRY 

Amend Article III, Section 1, to read as follows: 

Sales below cost of production and distribution.- (a) In order to prevent destructive price cutting in the Industry, the Fishing Taclde 

Industry Code Committee provided for in Article IV hereinafter, 

shall, subject to the approval of the Administrator, set up as soon as 

practicable a standard method of cost accounting for the Industry. 

Said Committee, shall, subject to the approval of the Administrator, 

define "reasonable cost of production and distribution" for the purpose of this Code and determine upon a basis to be uniform among 

the manufacturers of this Industry the character of the items to be 

included within such "reasonable cost of production and distribution." 

(b) Except as provided in Sections 2 and 3 of this Article it shall 

be unfair competition for any manufacturer to sell or offer to sell 

directly or indirectly through a subsidiary, intennediary, or by any 

means whatsoever, any product or part thereof of the Industry, 

whether such product is produced in whole or in part in the United · States, at a price or upon terms which will result in a return to the 

seller of an amount less tha:q the seller's own reasonable cost of 

production and distribution under this Code, except that it is hereby 

specifically provided that a manufacturer may meet an established 

competitive price of a domestic manufacturer on a product compar- able as to grade, size, quality and other specifications, and under like 

conditions of sale. Any below cost price quoted to meet competi- tion, together with all pertinent information in respect thereto, must 

be reported immediately to the Executive Officer of the Fishing 

Tackle Industry Code Committee. Any 1nanufacturer who justifies 

a below cost price on the basis of competition thereby assumes 

responsibility for establishing the existence of said competition. 

(c) A price below cost justified upon the basis o£ competition shall 

be void forthwith upon the cancellation, withd1·awal or revision 

upward of sueh justifying competitive price. · 

(d) In order to further effectuate the operation of this cost method, 

any cost and/or price information which the Fishing Tackle Industry 

Code Committee may deem necessary for the purpose required shall 

be furnished promptly to the Executive Officer of said Committee. 

It shall be unfair competition within the meaning of tho National 

Industrial Recovery Act for any manufacturer to withhold such 

information, or to furnish false or misleading cost and/or price 

information. 

(e) All individual reports or cost information disclose<l' to the 

Executive Officer of the Fishing Tackle Industry Code Cominitt~c 

shall be kept confidential and shall not be made available to ot:Ser 

manufacturers or to the Industry members· of the Code Committee 

excel t as may be necessary when such data disclose a violation, in 

which event such information shall, as much as po sible, be confined 

to a general summary. - (4) 
5 

(f) To facilitate the identification and classification of all products 

of the Industry when necessary to determine comparability of competition, each manufacturer shall keep the Executive Officer of the 

Fishing Tackle Industry Code Committee supplied with the latest 

copies of his catalog and price lists and/or list and discount schedule 

showing lowest net prices being currently quoted. Such catalog 

and/or lists must contain or be supplemented by adequate information 

as to type, size, design, specifications, character, quality, grade and 

other pertinent informatio:r:! necessary to completely identify and 

classify each product. Nothing in this provision shall be construed 

to place any restriction on prices beyond subsection (b) of this Section. 

(g) Upon the request of manufacturers representing a majority of 

the production by dollar sales of any class of products of the Industry, 

the Fishing Tackle Industry Code Committee may te1nporarily 

suspend the standard method of cost accounting as it affects said 

class of products when in the judgment of the Code Committee the 

application of the cost method to such products is not practicable, or 

when the importation of competitive products in substantial quantities or in increasing ratio to domestic production renders ineffective 

the method or seriously endangers the position of domestic manufacturers of said class of products. 

(h) The operation of the standard method of cost accounting shall 

be subject at all times to the review of and appeal to the Adminis- trator, who shall have the power to revoke any Code Com1nittee 

action or decision in respect thereto. In the interim between appeal 

to the Administrator and his decision in respect thereto, unless the 

Administrator shall otherwise order, the decision of the Fishing 

Tackle Industry Code Committee shall continue in effect. 

(i) Upon application to the Fishing Tackle Industry Code Cmnroittee by manufacturers representing a majority of the production 

by dollar sales of any division or sub-division of the Industry, said 

division or sub-division may, subject to the approval of the Admin- istrator elect to sell its products upon such plan of open prices and/or 

terms and conditions publicly announced by each ·manufacturer as 

may be approved by the Administrator after such notice and hearing as he n1ay require. 

(j) It shall be unfair competitio:o. for a manufacturer newly engaged in the manufacture of any product of the Industry, or a new 

manufacturer, without adequate cost history with respect thereto, to 

charge prices based on an unwarranted presumption of the low cost 

estimates or large sales volume. 

Amend Article III, Section 2, to read as follows: 

Sales to other manufacturers.-In order to better distribute employment and to prevent over-production capacity, nothing in this Code 

shall prevent one manufacturer from selling his product to another 

bona fide fishing tackle manufacturer at prices mutually agreed upon, 

proviqing such sales are made at prices not less than "factory cost", 

nd further providing that the purchasing manufacturer complies w~th the provisions of this Code when reselling said merchandise. 

All intra-manufacturer sales, or agreements covering such transactions, 

at prices below the seller's reasonable cost of production and distribution shall be subject to the approval of the Fishing Tackle Industry 

Code Committee whose decisions in respect thereto shall be subject to 
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appeal to the Admini ti·ator. Said Committee shall, subject to the 

approval of the Administrator, define "factory cost" for the purpose 

of this Section of the Code. 

Amend Article III, Section 3, to read as follows: 

Close out merchandise.-It shall be an unfair trade practice to 

manufacture overruns, excess stocks and/or sub-standard goods for 

the purpose of disposal at reduced prices as close out merchandise, 

seconds, mill ends, and/or dropped lines. Sales of bona fide mill ends, 

dropped lines, rejects and/or surplus stocks may be made by any 

manufacturer in any year up to three per cent (3%) of his dollar 

volume of fishing tackle sales in the immediately preceding year, but 

any such sale shall be reported to the Executive Officer of the Fishing 

Tackle Industry Code Committee with the unit price of each separate 

item, within ten (10) days of the end of the month in which such sale 

was made. Sales of such merchandise in excess of three per cent (3%) 

shall be made only upon application to and consent of the Fishing 

Tackle Industry Code Committee, ·which must render its decision 

within ten (10) days of the date of receipt of such application, and 

whose failure to act within said ten (10) days shall be deemed an 

approval. Any manufacturer has the right of direct appeal to the 

Administrator fron1 a deci ion of the Fi hing Tackle Industry Code 

Committee in this regard. 

Add a new Section to Ar icle III, a follows: 

SECTION 7-Price guarantees.-It shall be unfair competitiOn to 

guarantee prices except again t the seller's O\-Vn decline. Nothing 

in this provision shall be construed to prevent the acceptance of firm 

orders at specified price and definite quantities, for future delivery. 

Add a new Section to Article IV, as follows: 

SEcTION 7 .-Nothing contained in this Code shall constitute the 

members of the Fishing Taclde Industry Code Committee partners 

for any purpose. Nor shall any member of the Code Committee be 

liable in anv n1anner to anyone for any act of any other member, 

officer, ageri't or employee of the Code Committee. Nor shall any 

member of the Code Committee exercising reasonable diligence in 

the conduct of his duties hereunder be liable to anyone for any action 

or omission to act under the Code, except for his own willful misfeasance or nonfeasance. 

Approved Code No. 13. Amendment No. 2. 

Registry No. 1657-1-03. 

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