Approved Code No. 115-Amendment No. 2 Registry No. 329-02 

NATIONAL RECOVERY ADMINISTRATION 

Aiv.IENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

WOOD PLUG INDUSTRY 

AS APPROVED ON NOVEMBER 7, 1934 

WE DO OUR PART. 

UNIV. 0~ FL ua. 

-· - - A,, ~ ... __ .,.. 

U.~ llflOMTO~ 

UNITED STATES 

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WASHINGTON: 1934 

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Approved Code No. 115-Amendment No. 2 

AMENDMENT TO CODE OF FAIR COM:PETITION 

FOR THE 

WOOD PLUG INDUSTRY 

As Approved on November 7, 1934 

ORDER 

APPROYING AMENDl\n~NT OF CooE oF FAIR Co::uPETITION Fon THE "r ooo 

PL-CG IKD STilY 

An application having been duly made punmant to and in full compliance with the provi ·ions 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 ,v oocl Plug Industry, an l hearings having been duly hell thereon and the a1i.nexecl r eport on said 

amendments, containing finding. ,Yith re. pect thereto, having been 

made and directed to the Pre ·ident: 

NOvV, THEREFORE, on behalf of the President of th Unit~d 

States, the N atio11al Industrial Recovery Board, pursuant to authority vested in it by ExecntiYe Orel rs of the President, including Executive Order No. 6859, and otherYi'ise, doe hereby incorporate by 

r eference said annexed report and does find that said code cornplie 

in all respects with the pertinent provisions and will promote the 

policies and purpo ·es of said Title of said Act; an l doe hereby 

order that said amendnients be and they are hereby approved; and 

that the previous approval of said Code i. hereby amended to include 

an approval of said Code in its entirety as amended, such approval 

and such amendments to take effect ten (10) clays from the date hereof, unle s good cause to the contrary is shown to the said Board 

before that time and the Board issues a, subsequent Order to that 

effect. 

N A'IIOKAL INDUSTRIAL RECOVERY BOARD, 

By \V. A. HARRB:t:AN Administrative Officer. 

Approval recommendecl : 

,v. P. ELLIS, 

Acting Division Administrator. 

,vA. nrNaToN, D. c., 

N ove1?ib e1· '7. 193.4 . 

OG201°-1323- ~ -34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: Thi is a report on the amendm nts to the Code of Fair 

Competitio~1 for the ,v ood Plug Industry and on the hearino- conducte l thereon in vVashington, D. C., on April 26, 1934, in accordance with the provisions of Title I of tho National Industrial 

Recov ry Act. 

The ,vood Plug Industry throuo-h the Code Authority ha offered 

amendments to its Code. of Fair Competi ion. Seven proposed 

amendments were submitted by the Code Authority, but sub ·equently 

to the public hearing one amendment as originally propo eel has be n 

change cl to con£ orm to n vised policy. 

The propo eel arnendm0 nts in their final form are summarized 

herewith: 

The first amendment defines the term ":Member of the Industry " 

to conform to establi ·hed policy. 

The second amenclm nt clarifies and amplifies the provision rela,-

ti Ye to hours of the Code. 

The third amendment places upon the employer the r espon ·ibility 

of providing for the safety and health of employees and the e. tablishment of standard therefor. 

The fourth amendment provides that reconuncntlations of the 

Code 1 uthority upon appronil by the said Boar 1 shall b" made an 

integral part of this Code. 

The fifth amendment is a new section to Article VI ~ and grants to 

the CoJe Authority the use of trade a c;:o iation and other agencies 

a it d 0 em · proper for the ca1·rying out of any of its a tivities pro-

~ icled herein, but does not reliev-e the Code Authority f it duties 

an 1 r n ponsibilities under this Code. 

The ixth amendm0 nt pe6fie the right of the aid B ar 1 t su. ·-

pend any action of th Code uthority pencJjng inY :-:tigation. 

Th eYenth i:nnnndment r vi th provi. ·i n relative to pric 

cutting, uniform co..:t nccounting, emergcncie., and pri e filino·. 

FIND! GS 

Th D puty Adrnini trator in his final report to us 01 snicl nmcntlm nts to said Co le haYino· found a~ herein f·rt forth m1ll nth, l asi.-

of all the 1 r c cding.' in thi_. matter : 

"\V" find tLa t: 

(a) The am< nclrnen s '·o said C J • an l the Cotle as an ,ndrd arc 

w 11 l ·ignC'cl t prom t" the p lieie, an l 1rnrposes OJ. 'fjtl 1 of the 

Natioi,al Indnsirial PP oYery .\.ct inclu Eng th .,,moYal f ob::.tn1"-

tion · to the fr ·e fl.o w of intei·s at nncl "or"cign c mnwrcc which tend 

t<J climini.·h th amount tlir-r of, and will proYi(1e for tho g •ncral 

(2) 
3 

welfare by promoting the organization of industry for the purpose 

of cooperativ action among trad 0 groups, by inducing and maintaining united action of labor and management under adequate governmental sanction and supervision by eliminating unfair competitiYe pra tices, by promoting the fullest pos ible utilization of the 

present proclucti,·e capacity of industries, by aYoiding undue restriction of production ( xcept a may be temporarily required), by 

increa. ing the con umption of industrial and agricultural products 

through increa ing purchasing po11er, by r "ducing and relieving 

unem1 loyment, by imJ.)l'oving stc ndards of labor, and by otherwise 

rehabilitating industry. 

(b) The Code a amencl0 d complies in all re pect · with the pertinent proYision of said Title of saicl \.ct, including without limitation Sub. ection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of S ction 10 thereof. 

( c) The amcnch ... ents and the Code as amended are not designat0 d 

to and will not permit monopolie or monopoli tic practices. 

( c) The amendme11 ts and the Code as a nl 0 11ded arc not designed 

to and will not eliminate or oppr€ ·s small enterpri es and will not 

operate to discriminat against them. 

( e) Those engaged in other st p of the economic l rocess have not 

been depriv 0 cl of tl right to be hen.rel prior to appr val of said 

amei 1m£1nt ·. 

For these rea. ·ons, therefore, ,ve have approved the e amendments. 

For the National In lustrial Recovery Board: 

,·r. A. I-IARRJi\IAN' 1c11ninist1·ative Officer. 

N° OY.EI,IBEil 7, 1934. 
Ai1END~fENT TO CODE OF FAIR O:OfPETITION FOR 

THE ,VOOD PL-CG I~ DU TRY 

ARTICLE II. Change definition of term ·· member of the indu. try ' 

1.o read as follows : 

' The term member of th inclu try inclu le . . but without limitation any indiYidual, partnership~ a. o iation, corporation or other 

form of enterprise engaged in the indn try. either a · an employer or 

n his or its own behalf.:' 

ARTICLE III. ection 1, after the plua~e 1'in any wenty-four 24) 

hour period,. nd l the phra e 'nor more than c::ix lay in any calendar week " and change the word ·' hereinb~fore " to "hereinafter. 

ARTICLE V. Section 8 i. added to read a · follol,.' : 

"Every em1Joyer ·hall provide for the :-:afety and health of employees during the hours ancl at the places of th ir employment. 

Stanclards for . ·afety ancl h alth ·hall be n1bmitted by the Code 

~ uthority to the National Industrial RecoYery Board not lat0 r than 

sixty (60) days after tlP effectiYe elate her of. On approYal by the 

said Board, after ·uch notic and hearing.· a.~ it may pre:-·cribe, such 

::-tandard · shall become int grnl part. of thi.· Code.' ' 

ARTICLE VI. ct ion ~ ( b). ~\.. lcl the fallowing : 

'' Such recommendation;-; upon approYal by the Nntional Indu -

trial Recovery Boa rd after such notic an l hearing as it may preribe . hall b come integral 1 art. of this Code." 

AnTICLE VI. Section 2. A-:ld Sub:ection (f) a. · follows : 

"The Code Authority may use . uch trade association irnd other 

agen ie · a it deem-· prop r for th" carrying out of an_v of it 

activities provided herein; provided that nothing herein ·hall relieve th° Code Authority of its dutie and respon. ibilities un ler thi · 

Corle and that such trade a ~ociation.·· and other a o·encie. shall be 

._ubj t to and comply with the provi ·ion.· thereof."' 

ARTICLE VI. Section 4 i all led to read a. follow. : 

'If the National Inclu. trial Recm-ery Board shall determine that 

any action of the Code Authority or any a5ency thereof may be nnfa.ir or unjust or ontrary to the public interest, th said Board may 

require that such action be sn pended t a:ffor l an opportunity for 

inYestigation of the merit of such acti n and further con id ration 

by the ode Authority or no-ency penc1inn· final action v.hich hall not 

be ffective unle. said B ar l approYe:S r unle it shall fail to 

<1i approve after 30 clays' notice to it of intention to procee l with 

:nch a ·tion in it. riginal or moc.lifiecl f rm. 

AnTI LE \ II. ection 1. D lete thi~- "tion and ·nb titut the 

followin<Y: 

SE TION 1 (A). (a) Each m mber of th Industry shall fil ,\°ith 

a confidential an l cli..:int r steel agent of the C le An hority or, if 

(4) 
5 .. 

none, then with such an agent designated by the National Industrial 

Recovery Board, identified lists 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 

9ompletely and accurately conform. to and represent the individual 

pricing practices of said member. Such lists shall contain the price 

terms for all such standnrd products of the industry as are sold or 

offered for sale by said 111ember and for such nonstandard pro lucts 

of said member as shall be desjgnated by the Code Authority. Said 

price terms shall in the first instance be filed within ten (10) days 

after the date of approval of this provision. Price terms and revised price terms shall become effective immediately upon receipt 

thereof by ·aid agent. Immerliately upon receipt thereof, said agent 

shall by telngraph or o'her equally prompt means notify said member of the time of such rec ipt. Such lists an 1 revi ions, together 

with the effective time ther of, shall upon receipt be immediately 

and simultaneously di, -tribut 0 d to rJl member · of the industry and 

to all of their customers who have applied therefor and have offered 

to defray the cost actually incurred by tho Code Authority in the 

preparation and distribution ther of and be available :for in pection 

by any of their customers at the office of such agent. Said li. ts or 

revisions or any part thereof shall not be made available to any person until released to all members of the indu try and their customers, 

as aforesai l; provided, that price. filed in the fir -t instaiir·e shall not 

be relea eel until the expiration of the aforesaid ten (10) day period 

after the approval of this provi ion. The Code Authority shall 

maintain a pern anent file of all price term filed as herein provided, 

and shall not destroy any part of such records except upon written 

con ·ent of said Boarcl. Upon reque t the Cocle Authority shall furni ·h to c:.:aicl Boar 1 or any duly de ignated agent of said Board copies 

of any such lists or revi c:.: ions of price terms. 

(b) \Vhen any member of the industry has filed any revision, such 

member shall not file n higher price within forty-eight ( .J:8) hour . 

( ·) No member of tJw industry shall sell or ofi'er to ·ell any prod- , p l • ] t p l . l . l ' fil d t ucr · oI tne 1naus ry, ror ,v111c11 pnce terms nave tJeen e pursuan 

to the provisions of thj!--! _\..rticle, except in accordance with uch l rice 

ierrn.s. 

( d) No member of the industry shall ent0 r into any agreement, un-

<le,.·standing, combination or conspiracy to fix or maintain price terms, 

nor cause or attempt to cau. ·e any meinber of the inclu. try to change 

his price terms by thr rn,e 0£ intimidation, coercion, or any other influence i1ir·onsiste11t "-ith the maintenance of the :free nnd open market -which it is the purpose of this Article to create . 

• ~1~CTION 1 (13). The stan lar 1 · of fair competition for the indn. try 

with reference tt. pricjug practices are cleclar c1 to be as follow. : 

(a) \Vilfully de.tructive price cutting i an unfair method of compctition and i forbit1clen. Any member of the industry or of any 

other indu try or the Cll torner of either rnuy at any time complain 

to the Code Authority that any filed price consti utes unfair competition a de tructive price cutting, imperiling small enterprise or tending towar c1 monopol3 ot the im1 airment of code wage. and workjng 

conditions. The Code Autl ority shall within five ( 5) day afford 

an opportunity to the mrmb0 r filing the price to answ0 r such com-
11111111111l1i1i~1i1~1i'~ ll11 f11i11 !1l1f 1ii~1l1111111111 

6 3 1262 08854 3532 

plaint and ~hall ,Yithin fourteen (14) days make a ruling or adjustm0nt ther on . If f--nch rnling is not concmTed in by ither party to 

the complaint, all papers. ·hall be referred to the Research and Planning Diyjsion of N . R. A. whid1 shall render a report and recommendation thereon to the National Industrial RecoYery Board. (b) "\Ylwn no declared emergency exist!· as to any giYen l roduct, 

there is to be no fixecl minimum ba~is for pri e-·. It i. · intern.1ec1 that 

i-ounll cost <.'stimatjng method . honl<.1 be u eel and that onside1:atio11 

s11oul<l be gi·,·en to cost:-; in the determination of pricing policies. 

( c) °\\lien an emergency e:xi;·t. a. to any giYen product, sa le belmv 

the ~tatecl minimum pri"e of. uch product, in Yiolation of 8nbsection 

(a) Section 1 ( C) . ( Emergency Provisions) hereof, js forbidden . 

,"EcTIO .. ~ 1 ( C). (a) If the .LT ational Industrial R ecovery Board 

after i11Ye.·tig,1tion shall at any time find both (1) that an emero·ency 

hn:-; ari:-:en "\Yithin the industry adYersely affecting small enterpri.~e. 

er -wni;es or labor conditions 1 or tending tcward 1.,<mopoly or other 

ncutc C()nclition_ which tend to defeat the purpo3e. · of the Act; and 

(2) that the determination of the tatecl minimum price for a , peeifiell 

pr :1nct 1Yith~11 the inc1w-:try for a limited period is nere.·sary to 

mitigate the ·onclitions c 111stitnting such emergency and to effectuate the pnrpo:-;es o( the ), .. d, the Code Authority mny ·ause an impartial agency to inYestigate costs and to recommend to the saill 

Board a det rmination of the stated minimum price of the product 

affected by the 0mergcncy ancl thereupon the sai<l BoH n1 ma~,· pnweecl 

to cletf.:rmine snrh .-tated minimum price. 

(b) \Yhrn the :~ationnl l11dustrjal RecoYery Board shall haYc de -

termined such stated minimum price for a specifierl product for a. 

stat cl period which price shall be reasonably calculated to mitigate 

thr cont11tions of such euwrgency and to effcctnate the purposes of 

th€ :X ationnl Industrial Recoyery Act, the Board shall publish 

~nch price. Thereafter, during such stated period, no member of the 

inL1nstry shall ~ell such specified products at a net realized price 

bclmY said :::t.ated mini.mum price and any such . ale shall be d€emecl 

clestrncti Ye price cuttinμ·. From time to time the Code Authority 

may recommend reYiew or recon.-ideration or the .-aid Board may 

c:mi::::e any ,1ctennination here11n11er to be n.'Yie"\\cd or 1·cc:on·~icl ret1 

arnl u ppi·opriatc action taken. 

Sr:cTrox 1 (D). (a) The CoLle \..nthority shall cau:c to be fonnulntecl mrthocls of cu:-:t fil1'lillg and accounting capable of u e by all 

members of the inc1ustl' r, arn.l shall submit such method· to the 

Nntional I11clnstrial Reco,-rry Boar 1 for rPYie,Y. If approved by the 

:-nid Roar l. -full information concerning .-uch method. shall be mad 

nynjlalJle to all m 0 mbe1·.- of the Inclu. try. Thereafter ea ·h member 

o ( the irn1u:-:try shall utilize such methods to the extent founLl practicable. X othing herein containel1 shall be con trued to permit the 

t1 _._\.Htbority, any agent thereof or any member of th i1H1nstry 

to sugge:-t uniform alhlitions, percC'ntage~.:i or differ ,utjal.- or oth r 

uniform item~ of <·o.-t which an' <1esi[.rncrl to bring about arbi.trnry 

uniformity of c.:osts or prjces. 

Apprnyed : ,Hlr Xo. 113-Arn'JH1m<>nt .. To. 2. 

R,,gi:-:try .. ·o. 320-0~. 

0