Approved Code No. 330 — Supplement No. 1 Registry No. 1632—31 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WASTE PAPER TRADE (A Division of the Scrap Iron, Nonferrous Scrap Metals, and Waste Materials Trade) AS APPROVED ON JULY 12, 1934 WE DO OUR PART UNIV. OF FL Li!. I A mOT-" U.i. DEPOSITORY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For Bale by the Superintendent of Documents, Washington, D.C. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala.: 257 Federal Building. Boston, Mass.: 1801 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. 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Approved Code No. 330 — Supplement No. 1 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WASTE PAPER TRADE As Approved on July 12, 1934 ORDER Supplementary Code of Fair Competition for the Waste Paper Trade a division of the scrap iron, nonferrous scrap metals and waste materials trade An application having been duly made pursuant to and in full compliance with the provisions of Title I or the National Industrial Recovery Act, approved June 16, 1933, for approval of a Supple- mental Code of Fair Competition for the Waste Paper Trade to the Code of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals and Waste Materials Trade, and hearings having been duly held thereon and the annexed report on said Supplemental Code, containing findings with respect thereto, having been made and fi i pppton to tiio x^FGSiclpnt 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 Presi- dent, 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 Supplemental Code complies 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 Supplemental Code of Fair Competition be and it is hereby approved. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : R. L. Houston, Division Administrator. Washington, D.C. July 12, 1934. 73333* 829-47 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: The Hearing on the Supplemental Code of Fair Competi- tion for the Waste Paper Trade,. a division of the Scrap Iron, Non- ferrous Scrap Metals and Waste Materials Trade, was held in the Willard Room of the Willard Hotel on May 14, 1934. The Sup- plemental Code which is attached was presented by the Code Au- thority in accordance with your Executive Order of March 12, 1934, approving the Code for the Scrap Iron, Nonferrous Scrap Metals and Waste Materials Trade. In accordance with the customary procedure everyone present who had filed a request for an appearance was freely heard in pub- lic, and all statutory and regulatory requirements were complied with. Provisions of the Supplemental Code were approved by the Industrial Advisory Board, Labor Advisory Board, the Legal Divi- sion, and the Division of Research and Planning. CONDITIONS IN THE TRADE The Trade consists of some 5,000 dealers engaged in supplying various grades of waste paper chiefly to paperboard mills. The consumption of waste paper varies with the seasonal demand for paperboard, which usually reaches a peak in March or April and again in October. During the present off-season in this line of Trade, it is believed that this Supplemental Code may provide means to stabilize con- ditions in such cases where destructive price cutting has brought about unfair competition. FINDINGS The Deputy Administrator in his final report to me on said Sup- plemental Code having found as herein set forth and on the basis of all the proceedings in this matter ; I find that — (a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of inter- state and foreign commerce which tend to diminish the amount thereof, and will provide for the general welfare by promoting the organization of trade for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promot- ing the fullest possible use of the present productive capacity of industries, by avoiding undue restriction of production (except as (2) 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 Supplemental Code as approved 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) Your Executive Order of March 12, 1934, approving the Code of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals and Waste Materials Trade empowers the Code Authority for the " Waste Paper Trade " to present the aforesaid Supplemental Code on behalf of the Trade as a whole. (d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elimi- nate 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 the approval of this Supplemental Code. For these reasons the Supplemental Code has been approved. Respectfully, Hugh S. Johnson, Administrator. July 12, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WASTE PAPER TRADE A DIVISION OF THE SCRAP IRON, NONFERROUS SCRAP METALS AND WASTE MATERIALS TRADE Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act, this Supplemental Code is established as a Code of Fair Competition for the Waste Paper Trade pursuant to the Execu- tive Order of March 12, 1934, approving the Code of Fair Competi- tion for the Scrap Iron, Nonferrous Scrap Metals and Waste Mate- rials Trade. All provisions of the Code of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals and Waste Materials Trade, which are not in conflict with the provisions of this Supple- mental Code, are hereby incorporated by reference in this Supple- mental Code and made a part hereof. Such provisions of the Code of Fair Competition for the Scrap Iron, Nonferrous Scrap Metals and Waste Materials Trade, together with the supplementing provi- sions of this Code, are the standards of fair competition for and are binding upon every member of the Waste Paper Trade. Article II — Administration Section 1. The Code Authority may delegate any of its powers to such regional or subsidiary committees as it may deem necessary; each such committee to be representative of the several groups com- prising the Waste Paper Trade in its region or division. Section 2. The Code Authority shall appoint a committee to make recommendations to the Administrator for the coordination of the Administration of this Supplementary Code with such other Codes as may be related to or affect the members of this Trade. Section 3. The Code Authority shall have the following powers and duties to the extent permitted by the Act : (a) Each member of the Trade shall keep accurate and complete records of its transactions in the Trade whenever such records may be required under any of the provisions of this Supplemental Code, and shall furnish accurate reports based upon such records concern- ing any of these activities when required by the Code Authority or the Administrator. If the Code Authority or the Administrator shall determine that substantial doubt exists as to the accuracy of any such report, so much of the pertinent books, records and papers of such member as may be required for the verification of such report may be examined by an impartial agency, agreed upon between the Code Authority and such member, or in the absence of agreement, appointed by the Administrator. In no case shall the facts dis- closed by such examinations be made available in identifiable form (4) to any competitor, whether on the Code Authority or otherwise, or be given any other publication, except such as may be required for the proper administration or enforcement of the provisions of this Supplemental Code. In addition to information required to be submitted to the Code Authority, members of the Trade subject to this Supplemental Code shall furnish such statistical information as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act to such federal and state agencies as he may designate ; provided that nothing in this Supplemental Code shall relieve any member of the Trade of any existing obligations to furnish reports to any govern- ment agency. (b) To investigate, subject to such rules and regulations as the Administrator may prescribe, alleged violations of the provisions of this Supplemental Code and require any members of the Trade to furnish reports pertinent to any complaint against such member. (c) To describe and define the various grades and types of waste paper for the purpose of this Supplemental Code subject to the approval of the Administrator. Immediately after approval by the Administrator, the Code Authority shall distribute such determina- tions among the members of the Waste Paper Trade. Section 4. (a) It being found necessary in order to support the administration of this Supplemental Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Code Authority is authorized : (1) 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 Supplemental Code. (2) 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 Trade. (3) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and obtain equitable con- tribution as above set forth by all members of the Trade, and to that end, if necessary, to institute legal proceedings therefor in its own name. (b) Each member of the Trade shall pay his or its equitable con- tribution to the expenses of the maintenance of the Code Authority, determined as hereinabove provided, and subject to rules and regu- lations pertaining thereto issued by the Administrator. Only mem- bers of the Trade complying with the Supplemental Code and con- tributing to the expenses of its administration as hereinabove pro- vided, 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. (c) The Code Authority shall neither incur nor pay any obliga- tion in excess of the amount thereof as estimated in its approved budget, except upon approval of the Administrator ; and no subse- quent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Article III — Trade Practices Section 1. No member of the Waste Paper Trade shall designate the various types and grades of waste paper in any other manner than the manner determined by the Code Authority under Article II, Sec- tion 3 (d) above. Section 2. No member of the Waste Paper Trade shall employ any subterfuge, to avoid or attempt to avoid the provisions of this Code or the purposes and intent of the National Industrial Recovery Act. Article IV — Emergency Provisions Section 1. If the Administrator, after investigation shall at any time find both ^1) that an emergency has arisen within the Trade 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 Trade for a limited period is necessary to mitigate the conditions constitut- ing 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 and there- upon the Administrator may proceed to determine such stated min- imum price. Section 2. When the Administrator shall have determined such stated minimum price for a specified product for a stated period, which price shall be reasonable 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 Trade 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. Article V — Cost Accounting The Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all members of the Trade, and shall submit such methods to the Administrator for review. If approved by the Administrator, full information concerning such methods shall be made available to all members of the Trade. There- after, each member of the Trade shall utilize such methods to the extent found practicable. Nothing herein contained shall be con- strued to permit the Code Authority, any agent thereof, or any mem- ber of the Trade to suggest uniform additions, percentages of differ- entials, or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or prices. Article VI — Modifications Section 1. This Code and all the provisions thereof are expressly made subject to the right of the President in accordance with the provisions of Sub-Section 10 (b) of the Act, from time to time to cancel or modify any order, approval, license, rule or regulation is- sued under Title I of said Act. Section 2. Such other provisions of this Supplemental Code as are not required to be included herein by the Act may, with the ap- proval of the Administrator, be modified or eliminated in such man- ner as may be indicated by the needs of the public, by changes in circumstances, or by experience. All the provisions of this Supple- mental Code, unless so modified or eliminated, shall remain in effect until June 16, 1935. Article VII — Monopolies No provision of this Supplemental Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, op- press or discriminate against small enterprises. Article VIII — Effective Date This Supplemental Code shall become effective immediately upon its approval by the Administrator. Approved Code No. 330 — Supplement No. 1. Registry No. 1632^-31. O UNIVERSITY OF FLORIDA 3 1262 08728 6000