Approved Code No. 18-Amendment No. 2 Registry No. 1128-01 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

C·ODE OF FAIR COMPETITION 

FOR THE 

CAST IRON SOIL PIPE 

INDUSTRY 

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AS APPROVED ON JULY 10, 1934 

WE DO OUR PART 

UNITED STATES 

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GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

✓ 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on an Amendment to the Code of Fair Competition for the Cast Iron Soil Pipe Industry, the Code having been 

approved by your order dated September 7, 1933. 

Notice of opportunity to be heard on this amendment was duly 

posted to all interested parties providing an opportunity to file 

objections to this amendment within a fourteen (14) day period, 

and unless due cause to the contrary is shown within this period, 

this amendment will become effective on July 16, 1934. 

The Code is amended to provide that willful destructive price 

cutting is an unfair method of competition and is forbidden and 

the amendment further provides for the establishment of minimum 

prices during the period of emergency. 

FINDINGS 

The Assistant 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 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 welfare by promoting the organization of industry for the 

purpose of cooperative 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 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 

sub-section (a) of Section 3, sub-section (a) of Section 7 and subsection (b) of- Section 10 thereof. 

( c) The amendment and the Code as amended ar:e not designed to 

and will not permit monopolies or monopolistic practices. 

( d) The amendm.ent and the Code as amended are not designed 

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

operate to discriminate a.gainst them. 

(2) 
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( 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 reasons therefore, I have approved this amendment. 

Respectfully, 

JULY 10, 1934. 

HUGH S. JOHNSON, 

Admiinistrator. 
A!\1END!\1ENT TO CODE OF FAIR COMPETITION FOR 

THE CAST IRON SOIL PIPE INDUSTRY 

SECTION 17. The standards of fair competition for the industry 

with reference to pricing practices are declared to be as follows: 

(a) Wilfully destructive price cutting is an unfair method of 

competition and is forbidden. Any member of the industry or of 

any other industry or the customers of either may at any time complain to the Code Authority that any filed price constitutes unfair 

competition as destructive price cutting, imperiling small enterprise or tending toward monopoly or the impairment of code wages 

and working conditions. The Code Authority shall within 5 days 

afford an opportunity to the member filing the price to answer such 

complaint and shall within 14 days make a ruling or adjustment 

thereon. If such ruling is not concurred in by either party to the 

complaint, all papers shall be referred to the Research and Planning 

Division of N.R.A. which shall render a report and recommendation 

thereon to the Administrator. 

(b) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended that 

sound cost estimating methods should be used and that consideration 

should be given to costs in the determination of pricing policies. 

( c) ,vhen an emergency exists as to any given product, sale 

below the stated minimum price of such product, in violation of 

Section 18 hereof, is forbiclden. 

SECTION 18. Emergency Provisions.-If the Administrator, after 

investigation shall at any time find both (1) that an emergency has 

arisen within the industry adversely affecting small enterprises 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 determination 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 and to e:ff ectuate 

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 the Administrator may proceed to 

determine such stated minimum price. 

(b) vVhen 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 Indus- trial Recovery Act, he shall publish such price. Thereafter, during 

such stated period, no member of the industry shall sell such specified 

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 recon- sideration or the Administrator may cause any determinations here- under to be reviewed or reconsidered and appropriate action taken. 

Approved Code No. IS-Amendment No. 2. 

Registry No. 1128--01. 

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