Approved Code No. 116-Amendment No.2 Registry No. 328-02 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

MOP STICK INDUSTRY 

AS APPROVED ON OCTOBER 30, 1934 

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U.S. DEPoefTCMW 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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Approved Code No. 116-Arnendment No. 2 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOP STICK INDUSTRY 

As Approved on October 30, 1934 

ORDER 

APPROVING AMENDMENT OF CoDE OF FAIR CoMPETITION FOR THE 

Mor STICK INDUSTRY 

An application having been duly made pursuant to and in fu ll 

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 for the :Mop Stick Industry, and 

hearings having been duly held thereon and the annexed report on 

said amendments, containing findings with respect thereto, having 

been made ~mel directed to the President: 

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

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the Pre ident, including 

Executive Order No. 6859, and otherwise, does hereby incorporate 

by reference said annexed report and does find that said code complies in all respects with the pertinent provisions and will promote 

the policies and purposes of ·said Title of said Act; and does hereby 

order that said amendments be and they are 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; provided, however, that the provisions of Article VII, Section 1, Sub ection a (i) ; 

and Article VII, Section 1, Subsection (e) insofar as it prescribes a 

waiting period between the filing of price lists and the effective date 

thereof, be and they are hereby stayed pending the said Board's 

further Order; and further provided that price lists shall be filed 

with a confidential and disinterested agency of the Code Authority; 

such approval and such amendments to take effect fifteen (15) days 

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

to the aiel Board before that time and the Board issues a sub equent 

Order to that effect. 

NATIONAL INDUSTRIAL RECOVERY BOARD, 

By G. A. LYNCH, Adm,inistrative Officer. 

Approval recomn1ended : 

,iV. P. ELLIS, 

A cting Division Ad1ninistrator. 

WASHIKGTON, D. C., 

October 30, 193.1,_. 

94757 °----1244-116----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDEXT, 

The lV hite H o'use. 

Srn: I have the honor to submit herewith amendments to the Code 

of Fair Competition for the JYiop Stick Industry. 

A public hearing on these am.endments was held in vV ashington, 

D. C. on l\Iarch 10, 1934: in accordance with the provisions of the 

National Industrial Recovery Act. 

Nine proposed amendments were submitted by the Code Authority but during the course of the hBaring and subsequent thereto, 

one additional amendment relating to those already proposed was 

presented for consideration, and one amendment as originally proposed was changBd to confonn to revised policy. 

The proposed amendments in their final form are summarized 

herewith. 

The first amendn1ent defines the term "Employer" to correct an 

omission of this term in the code as originally submitted. 

The second amendment clarifies and amplifies thB provision relative to the po ting of labor provisions of the Code. 

The third amendment places upon the employer the rBSponsibility 

of providing for the safety and health of employees and the establishment of standards therefor. 

The fourth amendment removes the right of the National Industrial Recovery Board to "amend" any action of the Code Authority 

in Artic]e VI, Section 2. 

The fifth amendment provides that recommendations of the Code 

Authority upon approval by the said Board shall be made an integral 

part of the Code. 

The sixth amendment clarifies the provisions relative to the sharing of expenses of administration. 

The seventh amendment specifies the right of the said Board to 

suspend any action of the Code Authority pending investio-ation. 

The eighth amendment revises the provision relative to price 

cutting, uniform cost accounting, emergencies, and price filing. 

The ninth amendment clarifles and amplifies the present provisions 

relative to price discrimination. 

The tenth amendment clarifies and simplifies the provision relative to defamation of competitors. 

FINDINGS 

The Deputy Administrator in hi final report to u on said amend- • 

ments to aid Code having found as rein set forth and on the ba.'i. 

of all the proceeding in this matter: 

vVe find that: 

(a) The amendment to aid Code and the Code as am ndecl are 

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

(2) 
3 

National Industrial 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 welf are 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 snpervi ·ion, by eliminating unfair competitive practices, 

by promoting the fulle t po . ible utilization of the pr s nt 1 roductive 

capacity of indu trie , by avoiding undue re.trjction of production 

(except as may be temporarily required), by increa ing the con umption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment by improving standard of labor, and by otherwise rohabilitatinO' industry. 

(b) The Code as amended complies in all r peeL 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) The amendment and the Code as amended are not de igned to 

and will not eliminate or oppre s c;:mall enterpri e and will not 

operate to eli crjminate again t them. 

(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 

amendments. 

For these reasons, these amendm.ents have been approved. 

For the National Indu trial Recovery Board: 

c. A. LYNCH, 

Administrative Officerw 

OcTOBER 30, 1934. 
A~1ENDMENT TO CODE OF FAIR COMPETITION FOR 

THE :MOP STICIC INDUSTRY 

Article II is amended by the addition of the following inserted 

between the second and third paragraph: 

The term "employer" as used herein includes anyone by whom 

any such employee is compensated or employed. 

ARTICLE V.-Section 7 is amended to read as follows: 

Each employer shall post and maintain in conspicuous places 

accessible to employees full copies of the labor provisions of this 

Code. Every member of the Industry shall comply with all rules 

and regulations, relative to the posting of provisions of codes o£ 

fair competition which may from time to time be prescribed by the 

National Industrial Recovery Board. 

ARTICLE V.-Section 8 is added to read as follows: 

Every employer shall provide for the safety and health of employees during the hours and at the places of their employment. 

Stan lards of safety and health shall be submitted by the Code 

Authority to said Board within three months after the effective 

date of this amendment. 

ARTICLE VI.-Section 2, Paragraph 1, is amended by deleting in 

its entirety the phrase "subject to the right of the Administrator 

on review to disapprove or modify any action taken by the Code 

Authority", and further Article VI, Section 2 is amended by striking out the words "or modify" where they occur as being 

unnecessary. 

ARTICLE VI.-Section 2 (b) is amended to add the following: 

Upon approval by the National Industrial Recovery Board, after 

such notice and hearing as it may prescribe, such recommendations 

shall become an integral part of this Code. 

ARTICLE VI.-Section 2 (e) is amended by striking out the words 

"to be taken into consideration". 

ARTICLE VI.-Section 4 is added to read as follows : 

If the National Industrial Recovery Board shall determine that 

any action of a Code Authority or any agency thereof may be unfair 

or unju t or contrary to the public interest, the said Board may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action and further consideration 

by such Code Authority or agency pending final action which hall 

not be effective unles the Board approves or unless it shall fail to 

disapprove after 30 days notice to it of intention to proceed with 

such action in its original or mo lified form. 

(4) 
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Approved Code No. 116 Registry No. 328-02 

AMENDMENT NO.2-ERRATA SHEET 

CODE OF FAIR COMPETITION 

FOR THE 

MOP STICK .INDUSTRY 

As Approved on October 30, 1934 

Page 5 first line 'Article VIII" should be "Article VII." 

97859°----1325- 61----34 U . S. GOVERNMENT PRINTING OFFICE : 1934 
5 

ARTICLE VIII:-Section 1 is amended-to read as follows : 

Destructive Price Outting.-(a) The Principle.-(i) Destructive 

price cutting is an unfair method of competition and is forbidden 

at all times, irrespective of the existence of an emergency. 

( ii) 'Vhen no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices but it is intended that 

sound cost estimating methods should be used. 

(iii) When an em_ergency exists as to any given product, sale 

below the lowest reasonable cost of such product, in violation of subsection (c) hereof, is forbidden. 

(b) Vnijor1n 0 ost Accounting.-The Code Authority shall cause 

to be formulated an accounting system and methods of cost finding 

andj or estimating capable of use by all members of the Industry 

and shall submit such system and methods to the National Industrial 

Recovery Board for review and approval. After such system and 

methods have been formulated and approved by the said Board, 

full details concerning them shall be made available to all members. 

Thereafter it is intended that all members should utilize the principles of such system or methods. 

(c) Emergency (Lowest R ea8onable Oost).-,Vhen an emergency 

exists, the Code Authority may cause an in'lpartial agency to investigate costs and to determine the lowest reasonable cost of the 

product affected by the emergency. Such determination shall exclude all unallowable cost elements set forth in and shall be in all 

respects subject to such rules and regulations as may be issued by the 

said Board and subject to its approval or modification after such 

notice and opportunity to be heard as it may prescribe. Due notice 

of such determination sha:U be given to all members of the Industry. 

The Code Authority or the said Board may, from time to time, cause 

such determination to be reviewed or r econsidered and appropriate 

action taken. 

(d) Definitions.-An "Emergency" exists whenever the National 

Industrial Recovery Board determines that destructive price cuttjng 

is rendering ineffective or seriously endangering the maintenance 

of the provisions of this Code. 

( i) vVhen no emergency exists, the term shall have the meanin Q,' 

declared in rules and regulations promulgated by the said Board 

on recommendation of the Code Authority or on its own motion; 

(ii) 'Vhen an emergency exists, the term shall mean any ·ale in 

violation of subsection (c) hereof; 

(iii) It shall be an absolute defen e to any charge of destructive 

price cutting, if an impartial agency, designated or approved by 

the Board, shall find : 

(a a) That the price complained of is justified by existing competition, evidence of which has been reported to the Code Authority; 

(bb) That the price complained of is justified as a method of 

disposal of dropped lines or seconds, or 

( cc) When no declared emergency exists, that the member charged 

with destructive price cutting has in good fajth endeavored to make 

proper use of the announced cost estimating methods. 

(e) Each member of the Industry shall publish and file with the 

Code Authority a price list for all products of the Industry sold or 

offered for sale by him, together with discounts and transportation 
6 ll lllllli~llflillli lii flf111\i 1\111\1\ Iii\ \ii11111111111 

3 1262 08584 1996 

allowances, if any allowed therefrom, and fixed terms of payment, 

which price lists shall fully and accurately describe each product. 

Re isecl price li ts revi ed discounts, or terms and conditions of sale. may be filed and published from time to time thereafter by any 

n1ember of the Inclu try; provided, however that such r evision be 

published and filed with the Code Authority ten days in advance of 

the effective date thereof. Copies of all prio~ li ts and revised price 

li ts and discounts, with notice of the effective date specified, shall 

be sent immediately by registered mail to all known members of the 

Industry, who, thereupon, may file, if they so desire, revisions of 

their price list andj or discounts, which may become effective upon 

date when the revised lists or eli counts fir t filed, shall go into effect. (f) No member of the Indn try hall sell or offer for sale any 

product of the Industry at prices other than the prices noted in his 

price li tor terms or conditions of sale other than the terms or conditions of sale previously published and filed by such member with 

the Code Authority in accordance with the foregoing provisions and 

in effect at the time of such sale. 

ARTICLE VII.-Section 2 (a) is amended to read as follows : 

Directly or indirectly to discriminate in prices to purchasers of 

the same class, provided that nothing herein shall prevent differences 

in prices to allow for differences in quality, quantity, and transportation costs. 

ARTICLE VII.-Section 2 (d) is amended to read as follows : 

The defamation of competitors by falsely imputing to them dis- honorable conduct, inability to perform contracts, questionable credit 

standing or other fal e representations. 

Approved Code Ko. 116--Amendment No. 2. 

Registry No. 328-02. 

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