Approved ode No .274-Amendment o. 1 Re ~i try No. 1108-1-02 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

SAW AND STEEL PRODUCTS 

MANUFACTURING INDUSTRY 

f A 

AS APPROVED ON AUGUST 10, 1934 

WE DO OUR PAitr 

UNITED STATES 

GOVERNMENT PRI TING OFFICE 

W ASHL GTO : 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - Price 5 rents 
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Approved Code No. 274-Amendment No. 1 

Al\1ENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SAW AND STEEL PRODUCTS MANUFACTURING 

INDUSTRY 

As Approved on August 10, 1934 

ORDER 

APPROYING l\iioorFrcA TION OF CoDE OF F AIR COMPETITION FOR THE SA w 

AND STEEL PRODUCTS MANUFACTURING INDU TRY 

An application having been duly made pursuant to ancl in full 

compliance with the provi ions of Title I of the National Indu - trial Recov ry Act, approved June 16~ 1933, for approval 0£ a modification to a Code of Fair Competition for the Saw and Steel Prod- ucts l\lfanufacturing Industry, and opportunity to be heard thereon 

having been duly noticed and the annexed report on said modification, containing findings with respect thereto, having been made and 

directed to the P re. ident : 

NO, v. THEREFORE, on behalf of the President of the United 

States I: Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Ord r of the 

P resident, including Executive Order 6543-A, dated December 30, 

1933, and otherwi e, do hereby incorporate by reference, said annexed report and do find that said modification and the Code as 

constituted after being modified comply in all respects with the 

pertinent provi ions and will promote the policy and purposes of 

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

be an l it i hereb} approved, and that the previous approval of said 

Code is hereby n1odified to include an approval of said Code in its 

entirety as modified, ·uch approval and such modification to take 

ffect ten (10) clays from the date hereof, unless good cause to the 

contrary is hown to the Administrator before that time and the 

Admini trator is ues a subsequent order to that effect. 

Approval recommen led: 

HUGH S. JoH.r soN, 

'Ad1ninistrator /01· l ndust1oial Recovery. 

BARTON w. 1URRAY, 

Division Ad11iini.strator. 

W A HIKGT N, D .. , Aug'lt t 10, 1934. 

70600°-1044-57-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The liV hite l-1 ouse. 

Sm: T4is is a report on the Modification of the Code of Fair Competition for the Saw and Steel Products 1\1:anufacturing Industry. 

This Modification was propos€d and Notice of Opportunity to be 

H eard was given from July 19 to August 1, 1934. 

This Mo lification is desio-ned to correct the inadequate price 

filing provisions as contained in Article VI, Sections 1, 2, and 3 of 

said Code by sub tituting therefor provisions as determined and set 

forth by the National Recovery Administration under Office Memorandum #228. 

FINDINGS 

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

basis of all the proceedings in this matter: 

I find that: 

(a) The Modj fication to said Code and the Code as modified are 

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

the N ati.onal Industrial Recovery Act including the removal or obstructions to the free fl.ow 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 of labor and management under adequate governmental anction and supervision, by eliminating unfair 

competitive practice., by promoting the fullest possible utilization of 

the present productive cal?acity of industries, by avoiding undue 

restrictions of production ( except as may be temporarily required), 

by incr"asing the consumption of industrial and agricultural products 

through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwjse 

r ehabilitatinO' industry. 

(b) The c'ode as modified complies in all re ·pects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) or Section 7, and 

Subsection (b) of Section 10 thereof. 

( c) The Modification and the Code as n1odified are not designed 

to and will not permit monopolies or monopolistic practices. 

( d) The l\1odification and the Code as modified are not designed 

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

operate to discriminate against them. 

(2) 
3 

( e) Th se ngage l in oth r steps of the nomic proee s h v not 

been depriv f the right to l c h ard pri r to approvul f aid 

modifi ation. . F r th c r n.sons-, th so lVIodifications hav been a1 prov l by me, 

subj t ho,vev r, to a t<"n day waiting perio 1 as provid cl in the 

Ord r of AI proval. 

R I ·tfully, 

AUGUST 10, 1934. . 

HUGH s. JOHNSON, 

Adviinistrator. 
--

MODIFICATION TO CODE OF FAIR COMPETITION FOR 

THE SAW AND STEEL PRODUCTS MANUFACTURING 

INDUSTRY 

PURPOSE 

Pursuant to Article IX of the Code of Fair Competition for the 

Saw and Steel Products Manufacturing Industry, duly approved 

by the Administrator on February 10, 1934, and further to effectuate the policies of Title I of the National Industrial Recovery 

Act, the following l\!Iodification is established as a part of said 

Code of Fair Competition and shall be binding upon every member 

of the Saw and Steel Products Manufacturing Industry. 

MODIFICATION 

Delete Article VI, Sections 1, 2, 3 and substitute therefor as 

follows: 

"SECTION 1. Open Price.-(a) Each member of the industry 

shall file with the Coordinator of the Code Authority identified list 

of all of his prices, discounts, rebates, allowances, and all other 

terms or conditions of sale, hereinafter in this article referred to as 

'price terms', which lists shall completely and accurately conform 

to and represent the individual pricing practices of said member. 

Such lists shall contain the price terms for all such standard products of the industry as are sold or offered for sale by said member 

and for such non-standard products of said member as shall be 

designated by the code authority. Said price terms shall in the first 

instance be filed within fifteen (15) da.ys after the date of approval 

of this provision. Price terms and revised price terms shall become 

effective immediately upon receipt thereof by the Coordinator. Immediately upon receipt thereof, the Coordinator shall by telegraph 

or other equally prompt means notify said mern.ber of the time of 

such receipt. Such lists and revisions together with the effective 

time thereof, shall upon receipt be immediately and simultaneously 

distributed to all members of the industry and to all of their customers who have applied therefor and have offered to defray the 

cost actually incurred by the code authority in the preparation and 

distribution thereof and be available for inspection by any of their 

customers at the office of the Coordinator. Said lists or revi ions 

or any part thereof shall not be made available to any person until 

released to all members of the industry and their customers, as 

aforesaid; provided, that prices filed in the first instance shall not 

be released until the expiration of the aforesaid fifteen ( 15) day 

period after the approval of this provision. The code authority 

shall maintain a permanent file of all price terms filed as herein 

provided, and shall not destroy any part of such records except upon 

(4) 
5 

written con ent f th Aclministrator. I n r qu t th ode authority hall furnj ·h to he 1 ]mjni -trator or any dHly d :ianate 

ao- nt of th lmini. trator pi . f any ·u ·h li · s r r isi n of 

price t rm . 

' (b) Wh n any rn mb r of th indu try has fil .cl nny revision, 

u h m mb r shall not fil a hio·l1 r pri · within forty- ,i ht ( 4 ) 

hours. 

" ( c) o mcmb r f th industry hall . 11 or off r t · 11 any 

produ t of th in 1n try f 1· whi h I ri ·c t rm · hav b n file l 

pursuant to h I rovi. ion. f thi · arti 1° x It in a r lane with 

u h pri term~. 

' ( d) m .mb r of the in lu try hall ntPr into an ao-r ment, 

under tandino·, combination r nspira y to fix or maintain pri1.;e 

t rms, nor an ·c r attem1 t to ca LL · any m mber of the indu ·try 

to hano·e hi pric t rm b th n. e of intimi lation, oercion or 

any th r influ nc incon ~i tent with thr rnaintenan f the free 

and open market which it i the purpose of thi: article t reate. 

"SECTION 2. Cost Finding.-The Cod Authority hall cause to be 

formulut cl method · of co t finding and accounting apablc of use 

by all memb r' of the indu try, a.nd shall submit ·uch methods 

to the Admini trator for review. If approved by the Administrator, 

full inf rrnation concernino- such method hall be made available 

to all members of the indu try. Thereafter, each member of the 

indu try shall utilize such method· to the extent found practicable. 

Nothing her in contained hall be construed to permit the Code 

Authority, any agent thereof, or any member of the indu try to 

uggest uniform a lchtions, percentages or differentials or other uniform item of cost which are <l , ig:r...e l to brino- about arbitrary 

uniformity of co ts or prices. 

'SECTION 3. Costs ancl Price Cutting.-(") The standards of fair 

competition for the industry with refel"~nc:e to pricino· practices are 

declared to be as foll w : 

' (1) '\Vilfully d tructive price cuttino- i · an unfair method of 

competition an l is forbi lden. Any member of the indu try or of 

anj other indn try or the custom r of ither may at any time complain to the le Authority that any filed price con titutes unfair 

ompetition a d tructiv I rice cutting, imperiling mall cnterpri e 

or tending toward monopoly or the impairrnent of code Tage and 

workino- condition . The Code Authority hall within u days afford 

an opportunity to the member filino· the pric to an w r such complaint and hall within 14 lay make a rulino· or adju tment thereon. 

If uch ruling is not concurred in by eith r party to the omplaint, 

all pap r hall be referr l to th Re earch and Plannino· Divi ion 

of RA which , hall render a report t'ln l re mmendation thereon 

to the lmini trator. 

"(2) "\Vhen no le larecl emero· ncy e:s:i -ts a to any o·iven produ t, 

there i to be no fi:s: l minimum ba i · for pric It i intended that 

oun l co t e timatino· metho l . hould b u e l and that on ideration 

houl l be giv n to co t in the d termination of pricino- p licie . 

(3) "\Vhen an merg n y exi ·t a to any o-iven product ale 

below the tated minimum price of such product, in violation of Section 2 hereof, is forbidden. 
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6 3 1262 08855 5791 

"(b) Emergency Provisjons: 

"(1) If the Administrator, after investigation shall at any time 

find both (1) that an emergency has arisen within the industry adversely affecting small enterpl'ises or wages or labor conditions or 

tending toward monopoly or other acute conditions which tend to 

defeat the purposes of the Act; and (2) that the deterrnjnation of 

the stated minimum price for a specified product within the industry 

for a limited period is necessary to mitigate the conditions constituting such emergency und to effectuate the purposes of the Act, the 

Code Authority may cause an impartial agency to investigate costs 

and to recommend to the Administrator a determination of the stated 

minimum price of the product affected by the emergency and thereupon th~ Administrator may proceed to determine such stated minimum price. "(2) When the Administrator shall have determined such stated 

minimum price for a specified product for a stated period, which 

price shall be reasonably calculated to mitigate the conditions of such 

emergency and to effectuate the purposes of the National Industrial 

Recovery Act, he shall publish such price. Thereafter, during such 

stated period, no member of the industry shall sell such specifi ed 

products at a net realized price below said stated minimum price and 

any such sale shall be deemed destructive price cutting. From. time 

to time, the Code Authority may recommend review or reconsideration or the Administrator may cause any determinations hereunder 

to be reviewed or reconsidered and appropriate action takE:.n." 

Approved Code No. 274.-Amendment No. 1. 

Registry No. 1108-1-02. 

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