Approved Code No. 347 — Supplement No. 39 Registry No. 1414—06 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RAILWAY APPLIANCE MANUFACTURING INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON AUGUST 1, 1934 •Y/t DO CUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. .-.....- Price 5 centa This publication is for sale by tlie Superiutendeiit of Documeuts, Government Printing Otiice, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF IHE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. BufCalo, 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. 347 — Supplement No. 39 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RAILWAY APPLIANCE MANUFACTURING INDUSTRY As Approved on August 1, 1934 ORDER Approving Supplementary Code of Fair Competition for the Railway Appliance Manufacturing Industry A division of the machinery and allied products industry 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 a Supple- mental Code of Fair Competition for the Railway Appliance Manu- facturing Subdivision of Machinery and Allied Products Industry and hearings having been duly held thereon and the annexed report on said Supplemental Code, 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 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 subject to the following conditions: (1) That the provisions of Article VIII, Section (a) insofar as they prescribe a waiting period between the filing with the Code Authority (or such agency as may be designated in the Supplemental Code) and the efi^ective date of price lists, as originally fiJed and/or revised price lists or revised terms and conditions of sale, be and they hereby are stayed pending my further order ; (2) That the provisions of Article VIII, Section (e) be and they hereby are stayed pending the submission of satisfactory evidence concerning distribution of the products of the Subdivision to the Administrator ; 77613°— 1044-10 34 (1) (3) That the provisions of Article IX, Section 7 be and they hereby are staj^ed for a period of fifteen (15) days; within which time cause may be shown, if any there be, why the above provisions should not become effective; and (4) That the provisions of Article IX, Sections 6 and 8 be and they hereby are staj'ed pending my further order. Hugh S. Johnson, Administrafor for Industrial Recovery. Approval recommended : Barton W. Murray, D ivision A dministrator. Washington, D.C, August i, 193J{.. REPOKT TO THE PRESIDENT The President, The White House. Sm : This is a report on the Supplemental Code of Fair Competi- tion for the Railway Appliance Manufacturing Subdivision of the Machinery and Allied Products Industry, Public Hearing having been conducted thereon in Washington, D.C., December 2L 1933, in accordance with the provisions of Title I of the National industrial Recovery Act. GENERAL STATEMENT The Railway Appliance Manufacturers Association being repre- sentative of the manufacture of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in Article I of the Code of Fair Competition for the Machinery and Allied Prod- ucts Industry, approved by you on the seventeenth day of March, 1934. The Railway Appliance Manufacturing Subdivision means the manufacture for sale of railway hand cars, push cars, velocipede cars, motor cars and special appliances thereof, locomotive water cranes and parts thereof, and includes all those engaged in such manufacture for sale. ECONOMIC EFFECT This Subdivision has been affected by the depression and the ill effect may be attributed tp the fact that this Subdivision depends to a large degree on the railroads as a market for its products. Production dropped from $4,740,000 in 1929 to $1,210,000 in 1933, a decrease of 74.5 per cent. Employment totaled 875 persons in 1929 as against 450 in 1933, a loss of 48.5 per cent. Total payrolls amounted to $1,361,000 in 1929 and but $350,000 in 1933j a decline of 74.2 per cent. By June 1933, average hours per man per week for factory work- ers had decreased 34.4 per cent; average earnings per man per week had decreased 50.4 per cent. The President's Reemployment Agreement effected increases in employment and payrolls. Substantial business improvement is ex- pected in 1934 because of governmental loans to the railroads for purchase of maintenance of way equipment. 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: (3) I find that: (a) Said Supplemental Code is well designed to promote the poli- cies and purposes of Title I of the National Industrial Recovery Act, including 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 among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervi- sion, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of in- dustries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of indus- trial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 em- ploj^ees; and is not classified by me as a major industry. (c) The Supplemental Code as approved complies in all respects with the jDertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) oi Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association representative of the aforesaid Subdivision; and that said association imposes no inequitable restrictions on admission to membership therein. (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 approval of said Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code; on condition that certain provisions are stayed, as stated in the Order. Respectfully, Hugh S. Johnson, A dministrator. Washington, D.C, August i, 1934., SUPPLEMENTAKY CODE OF FAIR COMPETITION FOR THE RAILWAY APPLIANCE MANUFACTURING INDUSTRY A di^t:sion of the machinery and allied products industry Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mental Code of Fair Competition for the Railway Appliance Manvi- facturing Subdivision of the Machinery and Allied Products Indus- try, and taken together with the Code of Fair Competition of Machinery and Allied Products Industry, to which it is a Supple- ment, shall be the standard of fair competition for this Subdivision, and shall be binding on each employer therein. Article II — Definitions "Applicant " means the Railway Appliance Manufacturers Asso- ciation, a trade organization, all members of which are engaged in the manufacture for sale of the products of the Railway Appliance Manufacturing Subdivision of the Machinery and Allied Products Industry. " Industry " means the Machinery and Allied Products Industry, as defined in its Code of Fair Competition as approved by the Presi- dent, March 17, 1934, and as such definition may from time to time be amended. " Subdivision " means the Railway Appliance Manufacturing Sub- division of the Machinery and Allied Products Industiy as defined and set forth in Article II of tho Code of Fair Competition of the Machinery and Allied Products Industry as follows : " Railway Appliance Manufacturing Subdivision means the manu- facture for sale of railway hand cars, push cars, velocipede cars, motor cars and special appliances thereof, locomotive water cranes and parts thereof, and includes all those engaged in such manufacture for sale." " Code " means the Code of Fair Com.petition of the Machinery and Allied Products Industry, as approved by the President, March 17, 1934, and as from time to time amended. " Person " means a natural person, a partnership, a corporation, an association, a trust, a trustee, a trustee in bankruptcy, a receiver or other entity. " Employer " means any person engaged in this Subdivision of the Industry either on his own behalf or as an employer of labor. " Employee " means any one who is employed in the Subdivision by any such Employer. (5) ** The Act " means Title I of the National Industrial Recovery Act. " The President " means the President of the United States. " The Administrator " means the Administrator for Industrial Recovery, " Basic Code Authority " means the Code Authority for the Machinery and Allied Products Industry as constituted by the Code. " Code Authority " means the Code Authority constituted for this Subdivision, as provided by the Code and by this Supplemental Code. " Publish " means to make available to any interested party. Article III — Employment Provisions The following Articles of the Code, viz : Article III, " Working Hours " ; Article IV, " Wages " ; and Article V, " General Labor .Provisions ", are hereby made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Article IV — Adoption of Other Provisions of Code The following Articles of the Code, viz : Article II, " Definitions " and Article Yl, " Administration ", to the extent that they shall be applicable to the administration of this Supplemental Code as such or as it may hereafter be administered as an autonomous Code, and Article VIII, " Modifications and Termination " ; are hereby made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Article V — Administration (a) A Code Authority for this Subdivision is hereby constituted to administer, supervise and facilitate the enforcement of the Code and of this Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. (b) During a period not to exceed sixty (60) days following the effective date and pending the election of the permanent Code Authority, the executive Committee of the Applicant shall constitute a temporary Code Authority. (c) This Subdivision, having held an election for permanent Code Authority under the provisions of the Code of Fair Competition for the Machinery and Allied Products Industrj^, the Code Author- ity so elected shall constitute the first permanent Code Authority for this Subdivision, if this method of election meets with the ap- proval of the Administration. If this method of election does not meet with the approval of the Administration, then the provisions hereinbelow provided shall apply for the election of the first per- manent Code Authority. For elections after the first, the provisions of this Code for election of a permanent Code Authority shall apply. The Applicant shall, by written notice mailed to all employers known to the Applicant, call a meeting of employers, to be held within sixty (60) days after the effective date for the purpose of electing a permanent Code Authority which shall consist of three members, and one additional member to be elected in any fair man- ner with the approval of the Administrator by employers in this Subdivision, entitled to vote thereon, as provided below, who are not members of the Applicant, if so desired by such non-members. In voting for Code Authority each employer shall be entitled to cast one vote, in person or by duly authorized proxy. The Adminis- trator may, in his discretion, appoint one additional member (with- out vote and without expense to the Subdivision). The permanent Code Authority so elected and appointed shall supersede the tem- porary Code Authority and members of which will hold office for such periods as shall be specified in the Code Authority By-Laws. Any vacancy on the Code Autliority due to death, resignation, or because a member thereof has ceased to be connected with this Sub- division shall be filled at a meeting of employers called by the Code Authority on at least ten days' notice by registered mail sent to all known employers in tliis Subdivision, and in a manner similar to the manner in which the retired member was originally elected. (d) Any employer shall be entitled to vote at the election of the permanent Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and may participate in any endeavors of Code Authority in the preparation of any amendments or revisions of, or additions or supplements to this Supplemental Code by paying or agreeing to pay his proper pro-rata share of the reasonable cost of administering this Supple- mental Code as determined by Code Authority. (e) If formal complaint is made to Code Authority that pro- visions of this Supplemental Code have been violated by any em- ployer, Code Authority may cause such investigation or audit to be made, to the extent permitted by the Act, as may be deemed necessary. ' (f) The Code Authority may appoint a Trade Practice Com- mittee which shall meet with the Trade Practice Committees ap- pointed under such other Codes as may be related to the Subdivision for the purpose of formulating fair trade practices to govern the relationships between production and distribution employers under this Supplemental Code and under such others to the extent that such fair trade practices may be proposed to the Administrator as amendments to this Supplemental Code and such other Codes. Article VI — Accounting and Costing The Code Authority shall cause to be formulated an accounting system and methods of cost finding and/or estimating, capable of use by all employers of the Subdivision. After such system and methods have been formulated, full details concerning them shall be made available to all employers. Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such methods. Article VII — Selling Below Eeasonable Cost When the Code Authority determines that an emergency exists in this Subdivision, and that the cause thereof is destructive price- cutting such as to render ineffective or seriously endanger the mainte- 8 nance of the provisions of this Supplemental Code, the Code Au- thority may cause to be determined the lowest reasonable cost of the products of this Subdivision, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, or modify the determina- tion. Thereafter, during the period of emergency, it shall be an unfair trade practice for any employer of the Subdivision to sell or offer to sell any products of the Subdivision for which the lowest reasonable cost has been determined at such prices or upon such terms or conditions of sale that the buyer Avill pay less therefor than the lowest reasonable cost of such products. When it appears that conditions have changed, the Code Au- thority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. Article VIII — Price Lists (a) If and when the Code Authority of this Subdivision deter- mines that in any branch or group of the Subdivision it has been the generally recognized practice to sell a specified product on the basis of net price lists, or price lists with discount sheets, and terms of sale and payment, each employer shall, within ten (10) days after notice of such determination, file with the Code Authority a net l^rice list, or a price list and discount sheet, as the case may be, individually prepared by him, showing his current prices, or prices and discounts, and terms of sale and payment, for such specified product, and the Code Authority shall immediately publish them and send copies thereof to all known employers who are cooperating in this Supplemental Code as described in Section (d) of Article V hereof. Revised price lists and/or discount sheets and/or terms of sale and payment for such product may be filed from time to time there- after with the Code Authority by any employer but such revised price lists and/or discount sheets and/or terms of sale and payment shall be filed with the Code Authority ten (10) days in advance of the effective date. Copies of such revised price lists and/or discount sheets and/or terms of sale and payment, for such product, with notice of the effective date specified, shall be immediately published and sent to all known employers who are cooperating in this Sup- plemental Code as described in Section (d) of Article V hereof, any of whom may file, if he so desires, to become effective upon the date when the revised price list and/or discount sheet and/or terms of sale and payment first filed shall go into effect, revisions of his price lists and/or discount sheets and terms of sale and payment establishing prices or prices and discounts.^ (b) If and when the Code Authority shall determine that in any branch or group of the Subdivision not now selling its product on the basis of price lists, with or without discount sheets, with terms of sale and payment, the distribution or marketmg conditions in said branch or group are the same as, or similar to, the distribution or marketing conditions in a branch or group of the Subdivision where the use of price lists, with or without discount sheets, and * See paragraph 2 (1) of order approving this Code. 9 terms of sale and payment, is well recognized, and that a system of selling on net price lists or price lists and discount sheets with terms of sale and payment for such product should be put into effect in such branch or group, then each employer of such branch or group shall within ten (10) days after notice of such determina- tion, file with the Code Authoritj'^ net price lists or price lists and discount sheets, containing terms of sale and payment, showing his current prices and discounts and terms of sale and payment, and such price lists and/or discount sheets and/or terms of sale and payment may be thereafter revised in the manner hereinabove pro- vided, and such methods of pricings and revisions thereof shall bs "published and sent" as described in Article VIII (a); provided, however, that the Code Authority shall make no determination to place any product of the Subdivision (not now on a price list basis) on a price list basis, as provided in tliis j^aragraph (b) of Article VIII, unless the employers who are at that time engaged in manu- facturing such product and are at that time cooperating in this Code, have given their affirmative consent to such determination. The eligibility requirements, method, and effect of such voting shall be the same as provided in Article V. (c) Each employer shall prepare and furnish the Code Authority for distribution with such number of copies of his price lists and/or discount sheets and terms of sale and pa3'ment as Code Authority may prescribe. (d) No employer shall sell direetly or indirectly by any means whatsoever, any product of the Subdivision covered by provisions of this Article VIII at a price or at discounts, or on terms of sale and payment different from those provided in his own current net price lists, or price lists and discount sheets, provided that nothing in the above shall prevent an employer from adding to his own price and/or price list and discount sheets by increasing his job price to include unusual selling, engineering, servicing, financing, financial risks, or other similar special charges. (e) No employer shall evade any provision of this Code by sell- ing to or through any dealer, jobber, distributor or other selling agency which shall fail to agree to resell in accordance w^ith the provisions of Articles VII, VIII and IX of this Supplemental Code.^ Article IX — Tiiaue Practices Each of the following acts and practices is deemed to be inimical to the best interests of this Subdivision, and of the public, and each is, therefore, hereby declared to be, and to constitute, an unfair method of competition and is hereby prohibited, viz : — 1. No emploj^er shall engage in destructive price cutting, 2. No employer shall secretly offer or make any payment or allow- ance of a rebate, refund, commission credit, unearned discount or excess allowance whether in the form of money or otherwise, nor shall an employer secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. 3. No employer shall give, permit to be given, or offer to give, anything of value for the purpose of influencing or rewarding the • See paragraph 2 (2) of order approving this Code. 10 action of any employee, agent or representative of another in rela- tion to the business of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. This provision shall not be con- strued to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. 4. No employer shall publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, nor shall any employer in any way mis- represent any goods (including but without limitation its use, trade- mark, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation), or credit terms, val- ues, policies, services, or the nature or form of the business conducted. 6. No employer shall publish or circulate unjustified or unwar- ranted threats of legal proceedings, which tend to, or have the effect of harassing competitors or intimidating their customers. 6. No employer shall take in trade or accept in trade any second- hand or old equipment in part payment for new, provided, however, that this provision shall not be construed to prohibit in any way the return within six months of the date of shipment, to the vendor and the allowance of any fair adjustment thereon by the vendor of any product which shall not meet the purposes for which it was sold. Any employer may, however, assist in finding a bona fide buyer for said equipment but shall in no case take any financial interest in it.^ 7. So long as the maker of any product of this Subdivision bear- ing the maker's name or trademark, which has required special de- signing, research or development expense (or his successor in busi- ness) continues to make and supply such spare, repair and replace- ment parts therefor, supplying repair parts for such product of this Subdivision unless the name of the maker of such repair parts shall be plainly marked on each part (or if this is impracticable on the package or tag) so that the ultimate user is clearly informed by such markings on parts, packages, tags and in catalogues, price lists, quoted prices, of such parts that said parts were not made by the original maker of the products of the employers of this Sub- division.* 8. No employer shall furnish to any purchaser, and/or his agent, directly or indirectly detailed drawings, of the products of this Subdivision, without filing a statement of sucli proposed transaction, with the Code Authority which shall approve or with the approval of the Administrator disapprove the transaction within ten (10) days by written notice to the employer.' 9. No employer shall defame a competitor by falsely imputing to him dishonorable conduct, inability to perform contracts, ques- tionable credit standing, or by other false representations, or by falsely disparaging the grade or quality of his goods. 10. No employer shall willfully induce or attempt to induce the breach of existing contracts between competitors and their customers by any false or deceptive means, or interfere with or obstruct the "See paragraph 2 (4) of order approving this Code. ♦See paragraph 2 (3) of order approving this Code. 11 performance of any such contractual duties or services by any such means, with the purpose and effect of hampering, injuring or em- barrassing competitors in their business. Article X — Sales for Export No provisions of this Supplemental Code relating to prices or t^rms of selling, shipping, or marketing, shall apply to any export trade or sales or shipments for export trade. " Export Trade " shall be as defined in the Export Trade Act adopted April 10, 1918. Article XI — Moditicatigns (a) As provided by Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. (b) The provisions of this Supplemental Code, other than those required by the Act to be included therein, may, with the approval of the President, be from time to time amended, revised, added to or supplemented. Article XII — Monopolies Applicant imposes and shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopoly, and shall not be so construed or applied as to oppress or eliminate small enterprises or discriminate against them and is designed to effectuate the policy of the Act. Article XIII — Withdrawal Upon thirtjT^ (30) days' notice to Basic Code Authority'' and to the Administrator, this Subdivision may, upon the concurring affirma- tive vote of employers within this Subdivision entitled to cast two- thirds or more of all the votes that might be cast by all employers within the Subdivision entitled to vote thereon^ withdraw from the jurisdiction of Basic Code Authority. The eligibility of voters shall be in accordance with Article V, Section (d) of this Supplemental Code and the method and effect of such voting shall be in accordance with Article VI, Section (d) of the Code. Thereafter this Supple- mental Code, together with the provisions of the Code, except such portions of Articles I, II, VI, and VII as are not pertinent thereto, as determined by the Code Authority and the Administrator shall become the Code governing such former Subdivision, and its Code Authority shall become and be the sole Code Authority and shall perform all the functions thereof with respect to such Code. Article XIV — Effective Date This Supplemental Code shall become effective and binding on all employers in this Subdivision on the eleventh day after its approval by the President. Approved Code No. 347 — Supplement No. 89. Registry No. 1414-06. o UNIVERSITY OF FLORIDA 3 1262 08855 6559