V 

Ap{lroved Code Ne. 9-Amendment No. 32 Registry No. 313-1-06 

NATIO?TAL RECOVERY ADMINISTRATION 

Al\iENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

LUMBER AND TIMBER 

PRODUCTS INDUSTRIES 

AS APPROVED ON MARCH 15, 1935 

WE DO OUR PART 

. _ .. -- ,. Io--:-::-= 

UNITED ST A TES 

GOVERNMENT PIUNTING OFFICE 

WASHINGTON: 1935 

For saie by the Superintendent of Documents, \Vashington, D. C. • • • • • • • • • Price 5 cents 
This r u blication i for sale IJy the Superiutenueut of D ucurneut~, G0Yernwe11t 

Printing Offi:.:e, ,Yashington, D. C., anu by the following . R. .A. office·: 

.Atlanta, Ga.: 6:..5 Citizcnt I.' . Southern ~ational Bank Building. 

Baltimore, Mel. : 130 Customhom;e. 

Birmingham, Ala.: 201 Liberty National Life Building. 

Bo ton, 1\fass. : R oom 1200. 80 F ederal Str ee t. 

Buffalo, N. Y.: 219 ,Yhite Building. 

Chicago, Ill.: Room 204, 400 North i\Iic-lligan .Avenue. 

CleYeland, Ohio.: 520 Bul kley Building. 

Dallas, Tex.: 1~1~ Revublie Bank Bu ilding. 

D etroit, fr·h.: 415 ~ ew l!"'ecler,ll Building. 

H oust n , T ex.: 403 1\1ilam Building. 

Ja ·k ·011\'ille, Fla.: 42.5 ·nitec.1 . 'tate · Conrtl10u:-e and P ost Office 

Building. 

Lo .Angele . . Calif.: 751 Figuer oa Street South. 

Loui ville, Ky. : -10S F ederal Bui ldi;1g. 

l\IinoeapoL~. l\linn. : 900 Roanoke Building. 

, Na"' h Yille, Tenn . : 4F Cotton State-· Building. 

Ne"·ark, N. J.: 4:-'4 Industl'ial Office Bniiding, lOGO Broad Street. 

New Orle;1n , La . : 214 Cu:tomhonse. 

Tew York. N. Y. : 4-> Broadway. 

Oklah oma City, Okla.: 427 Commerce Exchange Building. 

Philadelphia , Pa. : 033 Commerdnl Trnst Building. 

Pittsburgh , Pa.: -101 Law and Finance B uilding. 

Portland, Oreg.: 407 P ark Buil ling. 

ProYiclence, R. I.: Xational Exc:bano-e Bank Building, 17 Exchange 

Street. 

St. L cui , }Io.: Suite 1220. 506 Oli;-e Street. 

San Francisco, Calif.: Humholt Bank Buildi11 g, 785 Market Street. 

Seattle, W a ~h.: 1730 Exchange Building. 
Approved Code No. 9-Amendment No. 32 

AlVIENDMENT TO CODE OF FAIR COlVIPETITION 

FOR THE 

LUMBER AND TIMBER PRODUCTS INDUSTRIES 

As Approved on March 15, 1935 

ORDER 

AP1'ROnNG Al\IENDMENT OF Com~ OF F .AIR CoMPETITION FOR THE 

LuMBER AND TrMnEn PRODUCTS INDUSTRIES 

An application haYing been duly made pursuant to and in full compliance 11ith the provisions of Title I, of the National Indu. trial 

Recovery Act approved June 16, 1933, for approval of an Amendment to a Code of Fair Competition for the Lnmb0 r and Timber 

Product Industries, and the annexed report of aid amendment, 

containing findings ,..-ith respect thereto, having been made by the 

Assi tant Deputy Administrator and directed to the National Indnsti·ial Recovery Board, and it appearing that an opportunity to be 

heard wjll be afforded to all interested parties : 

NO,V, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Boa rd, pursuant to authority vested in it by ExecutiYe Order Number 6859, an l otherwise: do-es 

hereby approYe, adopt, and incorporate by reference ail report, 

recommendations, and findings, and doe further fin l that .__ aid 

amendment and the Code as COJ 1 tituted after being amended comply 

in all re. pects with the pertinent provi ion and will promote the 

policy and purpo es of said Title of said Act, and cloes hereby 

order that said amendment annexed hereto be, and jt is hereby approved, and th.at the previous approval of said Code is hereb_y modified to include an a prov al of said Code in its entirety as amended, 

uch approYal and such amen lment to become effective twenty (20) 

clays from the date hereof unless good cause to the contrary is shown 

to the National Industrial Recovery Board1 and the National Industrial R0 cm~e ry Boa rd issues a sub. equent Order. 

N ATIOX..-\L INDUSTRIAL RECOYEilY BOARD, 

By ,V. A. 1-LI\.RRil\IAN, Aclmiwistrative Office1·. 

J Appr Yal recomm2nded: 

,Y. P. ELLI ' 

Dii:ision' Adminisfrator. 

\Y.A SIIIXGTOX. D. C., 

Zif atcli 15, 1935 

121Gl7°-160~-76-35 (1) 
REPORT TO THE NATIONAL INDUSTRIAL RECOVERY 

BOARD 

NATIONAL INDU TRI.AL RECOVERY BOARD, 

Washington, D. 0. 

GENTLEMEN: I have the honor to ubmit and r ecommend for your 

approval an amendment to · the Code of Fair Competition for the 

Lumber and Timber Product Industrie , which change chedule 

"A' of said Code by terminating the Appalachian and outhern 

H ardwood Subdivi ·ion of the H ard-wood DiYi ion and creating the 

Appalachian Hardwood Subdivision of the Hardwood Division and 

the Southern H ardwood Subdivision of the Hardwood DiYi ion. 

The amendment de ·ignate the Appalachian H ardwood :Manufacturer Incorporated a the admini trative agency of the 'Appalachian H ardwood Subdivision", ,esting it with the powers authorized in the Code a nece ary and proper for aclmini tratiYe purpo es 

in a Subdivision. An examination of it Constitution and ByL aws how that it imposes no inequit able restrictions upon membership and i · truly repre entative of the propo eel Subdivision. 

By this amendment the Hardwood ~fanufacturers In titute Incorporated, which wa previously the admini trative agency of the undivided " Subdivi ion ' is continued, by designation, as the admini -

trative agency for the majority of this area which will be included 

in the "Southern Hardwood Subdivi ion. ' It has previou ly been 

found to impose no inequitable re triction on member hip and to be 

truly repre ·entatiYe of the propo eel Subtli, i ion. It i hereby 

vested with the powers authorized in the Code as nee ~ ary and 

proper for admini tratiYe purposes in a Subtlivi ion. 

This amendment ha been submitted by the Lumber Code Authority in accordance with a resolution of December 5, 1934, in pur uance 

of a petition of the Hardwood ~Ianufacturer of the region indudecl 

under the propo eel ''Appalachian Hardwood SnbcliYi ion. ' A 

meeting of the e manufacturers wa. held at Netherlands Plaza Hotel, 

Cincinnati, Ohio, T oYember 2, 1934, at which were pre ent manufacturer representing an annual capacity of 1,000,150 000 board feet 

of harclw·o l lumber out of a total rated capacity of 1,810 290,000 

boar 1 feet or 55.32 /l of the total. There were one hundred and 

nineteen (119) manufacturer pre ent with productive capacity 

ranging from 312,000 to 76,000,000 board feet per annum. The average produ tiYe capacity of the manufacturers pre ent wa approximately 8 300,000 board feet per annum. Of the manufacturers 

pre ·ent thirt3 -one (31) have a yearly pro luctive capa ity of le. 

than 2,000,000 board feet each. Thi petition received the approval 

of the Hardwood ~Ianufacturer In titute, Incorporated, the Hardwood Co-ordinating Committee, and the Lumber Code Authority. 

A notice of opportunity to be heard on thi amendment will be 

made known to all interested partie through the mailing of a 

copy of aid notice t o everyone of record in the office of the Ap-

(2) 
3 

palachian Hardwood Manufacturers, Incorporated, and the Hardwood Manufacturers Institute, the proposed Divi ion Agencies respectively in each of the two contemplated Subdivi ions, and to 

appropriate trade papers serving the affected areas. 

The following exhibit are included in Volume II: 

1. Industrial Advisory Board's Approval. 

2. Con umers' Advisory Board's Approval. 

3. Report of Labor Advisory Board. 

4. Legal Di vision' Approval. 

5. Re earch and Planning Division's Approval. 

6. Admini tration Members' Approval. 

7. Letter of Transmittal from the Lumber Code Authority. 

8. Notice of Opportunity to be heard. 9. Copy of P etition of Appalachian Manufacturer submitted to 

Lumber Code Authority, Letter of Transmi ion of said P etition 

from that Authority, and Affidavits of competent parties upporting 

alient points made in aid P etition. 

10. Action of H ardwood Manufacturers In -titute Board of 

Director . 11. Code and Amendment · already approved. 

F or the proper con idcration of this amendment and determination with respect thereto, the following facts and findings are set 

forth: 

The hardwood lumber manufacturing industry of the South 

has ever been divided into two di tinct groups, i. e., the Appalachian 

and the Southern manufacturers, as is evidenced by the Forest Service's boundary delineation of the Appalachian territory and as set 

out in the petition and its supporting affidavits. This division is 

because of the following fundamental reasons: 

(a) Operating Conditions: The Southern territory is largely flat 

while the Appalachian is in the main hilly and mountainous. This 

call for u age in the Appalachian territory of a different and higher 

class of labor, and different and more expensive types of logging 

equipment than are necessary in the Southern operations. The hilly 

topography and the heavier inve tment of capital necessary in mu h 

of the Appalachian region tend to minimize the numb r of very 

mall mills operating in that district. (b) Timber Owner hip: Appalachian timber i largely owned by 

the mills that log and manufacture it, as contra ted with independent 

log and tanding timber marketing practices of the South. 

( c) Timb r Species : The Appalachian territory contains sonrn 

specie not found in the South. In some other species the pre lorninance is greater in the Applachian and in some others in the South. 

( d) Quality : The quality of the Appalachian timber is generally 

better than that of the South. 

( e) Value : By rea on of this superior quality, and, to ome extent, 

it closer proximity to major con urning markets, the Appalachian 

pro luct command a higher price. 

(f) The minimum. wao-e rates in the Appalachian and the Southern territories are 281⁄2 cents and 24 cent per hour re pectively. 

\Vhen it was written it wa thought po ible to admini ter the Code 

for the e two di tinctive group through a joint Subdivision, upon 

the administrative body of which each hould have representation. 
4 

Eighteen month.' experience has cl monstrated the fallacy of this 

assumption. lVhile the Appalachian mills produced about 251/o of 

the harch.-ood lumber of the entire South, their representation on the 

achaini tratiYe directorate of the joint SubdiYi ion has been six (6) 

out of a total of thirty-three (33) or lightly over 18%,. The records 

bear out the contention of the Appalachian operators that under joint 

Subdivision administration of Article VIII of th Code, the Southern mill hav recein~c.1 an oYer-liberal production allo+-ment at the 

expense of the Appalachian mill . The Code sets up that an achninistrative agency hall be truly representative. This joint administratiYe agency is not, and because of the fundamentally different 

exiting condition aboYe recited, can never be o made. The mandate of the Code, ju tice and wis lorn dictate that this petition should 

be granted through the approYal and promulgation of thi · amendment which I finJ : 

1st, ""\Vill effectuate the policies of the Act in the granting of true 

repre entation. 

2nd, ""\Vill impo e no inequitable restriction ·. 

3rd, ""\Vill not promote monopolies or tend to monopolistic practice..,. 

4th, ""\Vill not oppres sma ll enterprises. 

On the basis of all the fact stated above and the admini!-:-tratiYe 

findings of law and fact ma de above, I recommend that this amend-· 

ment be approved. 

Re. pectfully, 

Approval recommended: 

A. C. DrxoN, 

J. C. ,vr 'KLIFFE, 

Assistant Deputy Admin-istntto1·. 

Deputy Aclmin,i,strato1·. 

,v. P. ELLIS, 

D-ivision Acl?nini.stTatm'. 

:MARCH 7, 1935 . 

• 
AMEND~1ENT TO ODE OF FAIR OMPETITION FOR 

THE LUMBER AND TIMBER PRODUCTS INDUSTRIES 

I n Schedule A, DI VISION AND SUBDIVISION CODE PROVI "'ION , delete" 2-A. Appalachian and outhern Hardwood ubdivi ion and sub titute therefor: 

2-A. ppala hian Hardwood ubdivi ion 

2-H. S uthern Hardwood Subdivision 

In chedule A 2. Hardwood Divi ion, Divi ion (Article II, C) :, 

paragraph (a), delete Southern and Appalachian Hardwood Subdivi ion and subs+-itute therefor: 

Appalachian Hardwood Subdivi ion 

outhern Hardwood Subdivi ion 

In chedule A, 2. -Hardwood Divi ion, Administrative Agencies 

(Arti le III) :, paragraph (A), delete Southern and Appalachian 

Hardwood ubdivision-Hardwood 1:anufacturers In titute" and 

ub titute therefor: 

Appalachian Hardwood ubdivi ion-Appalachian Hardwood 

J\lanufacturer Inc. 

'outhern Hardwood ubdivi ion - Hardwood ~lanufacturers 

In titute. 

In chedule delete entire section" 2-A. Appalachian and outhern Hardwood Subdivi ion" and substitute therefor: 

2-A. APPALACHIAN HARD\\ 00D SUBDIHSI0..1. 

nmn ION (Article II C) : 

This Subdivi ion con i t of producer and manufacturer of the 

lumber and timber products of thi Subdivision spe ified in the 

paragraph entitled "Products" in the territory defined a follow·: 

Starting at Loui ville, Ky., following main line of the Louisville and ~ ashville Railroad to the Kentucky-Tenne ee tate line; thence 

east following aid State line to the we terly line of Pickett County, 

Tenn.; thence southerly along the we terly boundarie of Pickett, 

Fentre Morgan, Roane, Rhea and Hamilton Countie to the intersection of the we terly line of Hamilton County and the a hville 

hattanooga and St. Louis Railroad; thence ea terly along aid Railroad through Chattanooga to the inter ection of said Railroad ancl 

the 'Ienne ee-Georgia State line; thence we terly along aid Tenne ee-Georgia State line to the junction of the State of Tenne see, 

Georgia and Alabama; thence outh on Alabama-Georgia State line 

to thirty fourth parallel· thence ea t on thirty-fourth parallel in 

Geor(J'ia to mainline· Southern Railway, Atlanta to "\Va hington 

route; and thence northea t following Southern Railway from thi 

point through South Carolina, orth Carolina and Virginia to the 

northern terminal at\ a hington, D. C., and thence northward alonothe line of the P nn yfrania Railway, '\Va ·hington to Philadelphia 

route, to Pennsylvania State line; thence we t along southern bound-

(5) 
1111111111 ~II 1l~1li~11i1' ii i11i II 1111111~ iilllll 111111111 

3 1262 08583 0155 6 

ary line and north along the ·we tern boundary line of Pennsylvania 

to Ohio RiYer · thence along Ohio River to Louisville, Kentucky. 

All }Joints on boun lary lines between Appala,..hian ancl Southern 

H ardwood SubdiYi. ion are in Southern territory. 

PRODUCTS ( Article II A) : 

All lumber and timber products enumerated when manufactured 

from har hYoo l , Appalachian hemlock, white pine, s1 ru e, white 

(juniper) ancl rerl cedar exc0 pt: pole and piling; shingle ; \\'Oocl- work, inclu clin o- products o:f planing mills not op 0 rated in conjunction with a.wmill ; hard"TT""ood flooring; -veneer ·; plywood· kiln 

dried hardwood dimension; sawed boxes, shook and crates· plywood, 

veneer, an l , ·ire bound package and containers ; cro sarms; and railroa 1 ross ties. Aol\IINISTRATIYE AGEKCY (Article III) : 

Appalachian Harcl"TT""ood i1anufacturers, Inc., is de ignatecl ns 

the aO'ency of th Authority and -the Hardwood Coordinating Committee for the a lmini tration of the Code in this Subdivision. Said 

Appalachian Hard"TT""oocl :Manufacturers, Inc. through its Board of 

Tru tees i authorize rl to make such rule. and regulation as are 

nece. ·ary to aclmini ter the Code in this Subdivi ion and to de ignate and authorize uch further agencie as may be required for 

this purpose. 

2-H. Soun -rnn~ IL--.Rnwooo Sunmn ION 

S BDIYI rnx ( Article II C) : 

Thi c.:lub li-vision consi. t of producers and manufa turers of the 

lumber and timber products of this Subdi-vi ·ion pecified in the 

paragraph entitled '· Product ' within the following . tates: Texa , 

Louisiana, JUi. i, sippi, Alabama, Arkansa , J\Iissouri, Oklahoma, 

Florida Georgia , Tenne see, Kentucky, South Carolina, North Carolina. Yirginia, and :Maryland; excepting such portion of the above 

named state as lie within the Appalachian territory as de cribed 

in 2...\... All points on boundary lines between Appalachian and 

Southern Hardwood Subdivi ions are in Southern territory. 

PnooucT ( Article II A) : · 

All lumber and timber products enumerated when manufactured 

:from harcl--wood , ·white and yellow cypress, and white (juniper) and 

red cedar except: pole · and piling; shingle ; woodwork, including 

products of planing mill not operated in conjunction with sawmills; 

hardwood floorino" veneer ; plywood; kiln dried hard"TT""oo l dimenion; awed boxe. , hook and crates; plywood, ven°er and wirebound 

pa ckage and container ; crossarm ; and railroa l cro s ties. 

Am\IINISTRATIYE AGEXCY ( Article III) : 

The Hardwood J\fanufacturers Institute is de ignated a the 

agency of the \.uthority and the Hardwood Coordinating Committee for the a lmini tration of the Code in this Subdivi ion. Said 

Institute, through its Board of Directors, is authorized to make such 

rules and regulations a are neces ary to administer the Code in thi~ 

Subdivision and to de ignate and authorize such further agencies 

n may be required for this purpose. 

A11pr0Yed C'otle No. 9-Amenclment No. 32. 

Regi ·try No. 313-1- 06. 

0