Approved Code No. 184-Amendment No. 1 Registry No. 621~5 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

SHOE AND LEATHER FINISH 

POLISH AND CEMENT 

MANUFACTURING INDUSTRY 

' 

AS APPROVED ON AUGUST 2, 1934 

WE DO OUR PART 

f r - ---

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Approved Code No. 184-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

SHOE AND LEATHER FINISH, POLISH AND 

CEMENT MANUFACTURING INDUSTRY 

As Approved on August 2, 1934 

ORDER 

APPROVING AMENDMENTS OF CODE OF FAIR COMPETITION FOR THE 

SHOE AND L EATHER FINISH, POLISH AND CEMENT MANUFACTURING 

I NDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of an amendment to a Code of Fair Competition for the Shoe and Leather 

Finish, Polish and Cement Manufaoturing Industry, and hearings 

having been duly held thereon and the annexed report on said 

amendments, containing findings with respect thereto, having been 

made and directed to the President: 

NOW 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 Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise ; do hereby incorporate, by reference, said 

annexed report and do find that said amendment and the Code as 

constituted after being amended comply in all respects with the pertinent provisions and will promote the policy and purposes of said 

Title of said Act, and do hereby order that said amendments be and 

they are hereby approved, and that the previous approval of said 

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

entirety as amended, provided, however, that the following changes 

be and they are hereby made: 

1. Subsection (I) of Section 1 of Article VII be deleted. 

2. That the following be inserted as Article VII, Section 1, Subsection ( J) 3: 

3. (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 an:y quoted price constitutes unfair 

competition as destructive price-cuttmg, imperiling small enterprises 

7'8041°-1044-19--34 (1) 
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or tending toward monopoly or the impairment of code wages and . working conditions. The Code Authority shall within five days 

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

complaint and shall within fourteen 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) 1Vhen an emergency exists as to any given product, sale 

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

Section 2 hereof, is forbidden. 

This order shall become effective ten days after the date hereof 

unless within that time good cause to the contrary shall be shown 

to the Administrator and he shall issue a subsequent order to that 

effect. 

HUGH s. JOHNSON' 

Adminutrator for Industrial, Recovery. 

Approval recommended : 

GEO. L. BERRY, 

Div-ision Adminutrator. 

WASIDNGTON, D.C., 

August 13, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDE11i"T, 

The lV hite II ouse. 

Sm: A Code of Fair Competition for the Shoe and Leather Finish, 

Polish and Cement Manufacturing Industry was approved by you 

on December 30, 1933, and became effective on January 8, 1934. 

Since that time, it has been deemed advisable to bring within the 

scope of the above Code a group which is closely allied to the Shoe 

and Leather Finish, Polish and Cement Manufacturing Industry. 

This group is the Fabric Cleaner Industry. 

The Code Authority for the Shoe and Leather Finish, Polish and 

Cement Manufacturing Industry and a group representing approximately seventy-five (75%) per cent of the Fabric Cleaner manufacturers, submitted an application to include the above mentioned 

group under the approved Code. A Public Hearing on the proposed 

amendments was conducted in Washington, May 22nd, 1934, in accordance with the provisions of the National Industrial Recovery 

Act. 

By amending the definition of the Industry and the definition of 

the Shoe Polish Division, under which Divis10n the Fabric Cleaner 

manufacturers will be classified, the group has been included under 

the provisions of the Shoe and Leather Finish, Polish and Cement 

Manufacturing Industry's Code. The Code Authority has been enlarged to fourteen (14) members in order that it may be truly representative of the Industry. The Code has also been amended t.o allow 

the Code Authority to assess members of the Industry in order that 

the Code may be properly administered. There has also been added 

a provision for the formulation of methods of cost finding and accounting, which provision applies only to the Shoe and Leather 

Finish and Cement Di vision. 

THE INDUSTRY 

The Fabric Cleaner Industry includes the manufacture of liquids 

for cleaning wearing apparel sold under a trade name, and not sold 

as a basic commodity. There are about 550 establishments listed as 

manufacturers to some extent of fabric cleaners. Most of these firms 

are small or operate part-time under this classification. The larger 

shoe polish manufacturers _generally make fabric cleaners as do some 

oil companies and chemical special manufacturers. 

The 3:f ~egate number of employees in 1929 is estimated at about 

1;000. ual business is estimated at about $2,500,000 in recent 

years. 

The restrictions of the definition, ~ether with the general lack of 

organization in the Industry make it impossible to obtain accura~ 

statistical data regarding it. 

(3) 
4 

FINDINGS 

The Deputy Administrator in his final report to me on said 

amendments 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 amendments 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 subsection (a) of Section 3, subsection (a) of Section 7, and 

subsection (b) of Section 10 thereof. 

( c) The Fabric Cleaner Group of Manufacturers was and is an 

industrial group, which, together with the Code Authority are 

truly representative of the aforesaid Industry and that said group 

and said Code Authority imposed and imposes no inequitable restrictions on admission to membership therein and has a pp lied for 

these amendments. 

( d) The amendments and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practfues. 

( e) The amendments and the Code as amended are not designed 

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

operate to discriminate against them. 

(f) 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, therefore, the amendments have been approved. 

Respectfully, 

HUGH s. JOHNSON, 

Ad,ministrat<>r for Industrial Reco1Jerg. 

AUGUST 2, 1934. 
AMEND~IENT TO CODE OF FAIR COMPETITION FOR THE 

SHOE AND LEATHER FINISH, POLISH AND CEMENT 

MANUFACTURING INDUSTRY 

Article I I, Section 1 shall be amended to read as follows: 

" The term ' Shoe and Leather Finish, Polish and Cement Manufacturing Industry' as used herein includes the manufacturing for 

shoes and leathers of : Blackings, dressings, liquid rubber cements 

(meaning adhesives), pastes, pyroxylin cements, rubber (synthetic 

or natural, either dispersed or dissolved), polishes1 dyes, and cleaners, stitching waxes, burnishing waxes, finishes, binders, topcoats, 

reenforcing materials for innersoles, and other similar chemical products for use on shoes or leather, or liquids for cleanin~ wearing apparel sold under a trade name, and not sold as a basic commodity, 

together with such allied or related products as may from time to 

time, upon the approval of the President, be included under the 

provisions of this Code." 

Article I I, Seotion 13. The following sentence shall be added 

thereto: 

"This division shall include the ma.nufacturers of liquids for 

cleaning wearing a r,parel sold under a trade name, and not sold as 

a basic commodity.' 

Article VI, Section 13, shall be amended to read as follows: 

"SECTION 2. Organization and Oonlftitution of Oode Authority 

Board.-The Code Authority Board shall be composed of members of 

the Industry and shall consist of fourteen (14) members to be selected as follows: Eight (8) members of the Code Authority Board 

shall be appointed by the Administrator from members of the Shoe 

Polish Division, of whom six {6) are to be appointed from members 

who are primarily manufacturers of Shoe Polish and of whom two 

(2) are to be appointed from members who are primarily Cleanin~ 

Fluid :Manufacturers, and six (6) members from the Shoe anct 

Leather Finish and Cement Div1s1on to be selected as follows: The 

Executive Committee of the Association of Manufacturers of Shoe 

and Leather Finishes and Cements shall submit the names of twelve 

(12) nominees, of whom six shall be elected by the majority vote of 

tbe members of the Industry as a whole. Five of the six elected 

by this method shall be members of the Association." 

Article VI, Section 7, shall be deleted and the following substituted therefor: 

"7. 1. It being found necessary in order to support the administration of this Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, 

the Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds which may be raised as hereinafter _provided and which 

shall be held in trust for the purposes of the Code; 

(IS) 
6 

{b) To submit to the Administrator for his approval subject to 

such notice and opportunity to be heard as he may deem necessary: 

( 1) An itemized budget of its estimated expenses for the foregoing- purposes, and . (2) An equitable basis upon which the funds necessary to support 

such budget shall be contributed by members of the Industry. 

(c) After such budget and basis of contribution have been approved by the Administrator, to determine and obtain equitable 

contribution as above set f.orth by all members of the Industry, and 

to that end, if necessary, to institute legal proceedings therefor in 

its own name. 

2. Each 1nember of the Industry shall pay his or its equitable 

contribution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subject to rules and 

regulations pertaining thereto issued by the Administrator. Only 

members of the Industry complying with the Code and contributing 

to the expenses of its administration as hereinabove provided, shall 

be entitled to participate in the selection of members of the Code 

Authority or to receive the benefits of any of its voluntary activities 

or to make use of any emblem or insignia of the National Recovery 

Administration. 

3. The Code Authority shall neither incur nor pay any obligation 

in excess of the amount thereof as estimated in its approved budget, 

except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item for expenditures in excess of 

prior budget estimates except those which the Administrator shall 

have so a pp roved." 

Article VI Subsections F and G of Section 9 shall be deleted. 

There shaii be a new section added to Section 1, Article VII, which 

shall be hereinafter known as Section J: 

"SECTION J. 1. The Code Authority shall cause to be formulated 

methods of cost finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Adminjstrator for review. If approved by the Administrator, full information concerning such methods shall be made available to all members of the Industry. Thereafter, each member of the Industry shall 

utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit the Code Authority, any 

agent thereof, or any member of the Industry to suggest uniform 

additions, percentages, or differentials or other uniform items of 

cost 'Yhich are designed to bring about arbitrary uniformity of costs 

or prices. 

2. (a) If the Administrator, after investigation, shall at any time 

find both (1) that an emergency has arisen within the Industry 

adversely affectin~ small enterprises or wages or labor conditions_., 

or tending towarct 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 products within the 

Industry for a limited period is necessary to mitigate the conditions 

constituting such emergency and 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 
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and thereupon the Administrator may proceed to determine such 

stated minimum price. 

(b) 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 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 reconsideration or the Administrator may cause any determinations hereunder to be reviewed or reconsidered and appropriate action taken. 

Approved Code No. 184-Amendment No. 1. 

Registry No. 621--05. 

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