Approved Code No. 347 — Supplement No. 8 Registry No. 1312—07 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOE THE LOCOMOTIVE MANUFACTURING INDUSTRY CA Division of the Machinery and Allied Products Industry) AS APPROVED ON APRIL 30, 1934 WE DO OUR PART 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 170G, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. 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Seattle, Wash.: 809 Federal Office Building Approved Code No. 347 — Supplement No. 3 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LOCOMOTIVE MANUFACTURING INDUSTRY As Approved on April 30, 1934 ORDER Supplementary Code of Fair Competition for the Locomoti\'e Manufacturing Industry a division of the machinery and allied products industry An application having been duly made pursuant to and in full compliance with 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 Locomotive Manufactur- ing 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 on condition that The Locomotive Institute shall amend its Articles of Association and By-Laws to the satisfaction of the Administrator on or before April 27, 1934, as provided in the Execu- tive Order of approval of the Code of Fair Competition for the Machinery and Allied Products Industry as approved March 17, 1934. Hugh S. Johnson, Admimstrator for Industrial Recovery. Approval recommended: A. R. Glancy, Division Administraior, Washington, D.C, Apnl 30, 193Jy. 55813* 482-179 34 2 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Compe- tition for the Locomotive Subdivision of the Machinery and Allied Products Industry, public hearing having been conducted thereon in Washington, D.C., December 21, 1933, in accordance with the pro- visions of Title I of the National Industrial Recovery Act. GENERAL. STATEMENT The Locomotive Institute, being truly representative of tliis Sub- division of the Machinery and Allied Products Industry, has sub- mitted a Supplemental Code of Fair Competition to the Basic Code for the Machinery and Allied Products Industry, approved by you March 17, 1934. The Locomotive Industry is a capital goods indus- try and is engaged in the business of manufacturing and selling loco- motives of more than 1,200 H.P. per locomotive used for tractive power on railroads and locomotive parts thereof. ECONOMIC EFFECT This Subdivision suffered noticeably from the effects of the De- pression as follows: The value of production dropped from $66,870,000 in 1929 to $2,842,000 in 1933, a decrease of 95.8 percent. In 1933 factory employment declined 72.6 per cent from 1929. Factory payrolls in 1929 amounted to $17,994,000 and $1,801,000 in 1933, a decrease of 90 per cent. In June, 1933, average hours per man per week decreased 38 per cent from June 1929; total man hours during the same period decreased 92.4 per cent. In June, 1933, hourly rates for factory wage earners decreased 21.1 per cent from June, 1929 and weekly earnings decreased 51.1 per cent. The Pre-sident's Reemployment Agreement effected substantial in- creases in employment and payrolls. An improved outlook is held for 1934 due to the purchase of loco- rnotives by railroads out of funds loaned for the purpose, by the Federal Government. The Code will increase factory employment over June, 1933 about 4 per cent. Under the conditions estimated to represent normalcy for the industry, the Code will increase emjjloyment about 9 per cent. The Code will increase factory payrolls over June, 1933, about 1.4 per cent. Office payrolls will be increased about 6.4 per cent. (2) riNDIXGS The Assistant Deputy Administrator in his final report to me on said Supplemental 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 Avell designed to promote the pol- icies 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 super- vision, 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 in- dustrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving stand- ards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employ's not more than 50,000 employees; and is not classified by me as a major industry. (c) 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; and that the applicant group is an industrial gi'oup truly representative of the aforesaid Subdivision of the industry ; and that said group 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 Suj^plemental Code is not designed to and will not elim- inate or oppress small enterprises and will not operate to discrim- inate 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 The Locomotive Institute shall amend its Articles of Association and By-Laws to the satisfaction of the Administrator on or before April 27, 1934, as provided in the Exec- utive Order of approval of the Code of Fair Competition for the Machinery and Allied Products Industry as approved March 17, 1934. Respectfully, Hugh S. Johnson, Adjiiinistrator. April 30, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LOCOMOTIVE MANUFACTURING INDUSTRY A DIVISION or THE MACHINERY AND ALX,IED 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 National Industrial Recovery Code for the Locomotive Manufacturing Subdivision of the Machinery and Allied Products Industry, and taken together with the National Industrial Recovery Code of the Machinery and Allied Products Industry, to which it is a supplement, shall be the standard of fair competition for this Sub- division and shall be binding on each employer therein. Article II — Definitions "Applicant " means The Locomotive Institute, the address of which is 60 East 42nd Street, New York City, New York, a trade organiza- tion, all members of which are engaged in the manufacture for sale of products of the Locomotive Manufacturing Subdivision of the Machinery and Allied Products Industry, which organization is truly representative of this Subdivision.^ " Industry " means the Machinery and Allied Products Industry as defined in its National Industrial Recovery Code as approved by the President, and as such definition may from time to time be amended. " Subdivision " means the Locomotive Manufacturing Subdivision of Machinery and Allied Products Industry as defined and set forth in Article ll of the National Industrial Recovery Code of the Machinery and Allied Products Industry, as follows : " Locomotive Manufacturing Subdivision means the building and/or manufacturing for sale and selling of locomotives of more than 600 horsepower capacity per locomotive used for tractive power on railroads and/or finished and semi-finished component, repair and replacement parts thereof and/or therefor, by builders of loco- motives and/or their affiliated companies: provided, however, that locomotives propelled by electric motors (including finished and/or semi-finished component, repair and replacement parts thereof and/or therefor and used therein) may be built and/or manufac- tured for sale and sold either by members of this Subdivision under this Code or by members of the Electrical Manufacturing Industry under its Code. Locomotives of more than 600 horsepower capacity but not to exceed 1200 horsepower capacity and/or finished and semi- finished component, repair and replacement parts thereof and/or * Bee paragraph 2 of order approving this Code. (4) therefor may be built and/or manufactured for sale and sold by the Small Locomotive Subdivision under this Code. ' Horsepower ' means the fi<2:ure arrived at by multiplying tractive effort (taken at that speed at which the maximum horsepower will be produced) by the speed in miles per hour and dividing that result by 375. The term ' affiliated company ' as used in this paragraph means a company whose relations to another company are such that either one has, di- rectly or indirectly, a substantial stock interest in the other, or that a third company has, directly or indirectly, a substantial stock inter- est in both ; provided, however, that in the event of a dispute or disagreement regarding the term ' affiliated company ' as used herein, such dispute or disagreement shall be referred for decision to an arbitration committee, elected or appointed by a fair method of selection. Should any member of this Subdivision desire to appeal from the decision of said arbitration committee, such member may appeal direct to the Administrator, whose decision in the matter shall be final." " Products of the Subdivision " means only those articles pro- duced by the Subdivision as above defined. " Code " means the National Industrial Recovery Code of the Machiner}^ and Allied Products Industry, as approved by the Presi- dent, and 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 emplo3^er of labor. " Employee " means anyone who is employed in the Subdivision b}^ any such employer. " 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. " Group Code Authority " means the Code Authority for any group or product classification within this Subdivision constituted under the authority of Article V of this Supplemental Code. Article III — Adoption or Employment Provisions of Code The following Articles of the Code, viz: Article III, "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 VI, "Administra- tion ", to the extent that it shall be applicable to the administration 6 of this Siipi)lpmental Code as such or as it may hereafter be aclmin- iptered as an autonomous (ode; Article VIII, "■Modification and Termination'': Article IX. "Withdrawal"; Article X, " Mono])0- lies " and Article XI, " Etfective Date", are hereby made a part hereof with the same effect as if they were written into this Sup- plemental Code. Article V — Administration (a) A Code Authority for this Subdivision is hereby constituted to administer, .snj>ervi.se 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) For a period not exceeding sixty (CO) days following the effective date and pending the election of permanent Code Author- ity, the representatives of the members of Applicant appointed as in the Articles of Association and By-Laws of Applicant provided, shall constitute a temporar}' Code Authority. The xldministrator, in his discretion, may appoint one additional member (without vote and without expense to the Subdivision). (c) Temporary Code Authority shall, by written notice mailed to all employers known to temporary Code Authority, call a meeting of employers to be held within sixty (60) days after the effective dat€ for the purpose of adopting procedural rules and regulations for the organization and operation of permanent Code Authority and electing a permanent Code Authority which shall consist of three (3) members. Members of permanent Code Authority shall be elected at such meeting by a plurality of the votes cast thereat. Each elec- tive member of Code Authority shall be an employer or an executive officer of, or a partner in, an employer qualified to vote hereunder, but no two elective members shall be officers or representatives of the same employer, and for that purpose an employer owning more than two-thirds of the voting capital stock of another employer and that other employer shall together be considered as one and the same employer. The Administrator may, in his discretion, appoint one member (without vote and without expense to the Subdivision) in addition to those elected as aforesaid. Permanent Code Authority so elected and appointed shall supersede the temporary Code Authority, (d) Any employer shall be entitled to vote at the election of per- manent Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and may par- ticipate 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 as and when assessed his or its proper pro rata share or the cost of preparing, submitting and administering this Supplemental Code as determined by Code Authority. The cost of preparing, submitting and adminis- tering this Supplemental Code shall be borne by the employers en- titled to vote hereunder pro rata in the proportions that the number of votes which the respective employers are at the time entitled to cast bears to the total nilmber of votes which all the employers entitled to vote are at the time entitled to cast. (e) At the meeting held for the election of permanent Code Au- thority and at other meetings of employers each employer qualified to vote thereat shall have and be entitled to cast as many votes as shall equal the quotient obtained by dividing by 100,000 the amount in dollars of the yearly average net sales of products of the Subdivision made by such employer (exclusive of sales made between employers entitled to vote, either of which owns all the capital stock of the other) during the five preceding calendar years. Fractions in such quotient shall be disregarded, provided that each employer entitled to vote shall have at least one vote. All questions as to the number of votes which each employer entitled to vote shall be en- titled to cast at any meeting of employers shall be determined by Code Authority. At meetings of employers, including the meet- ing held for the purpose of electing permanent Code Authority, each employer entitled to vote may vote in person or by proxy duly executed by such emploj^er and filed with the Secretary of the meet- ing. At meetings of employers, unless herein otherwise provided, the concurring vote of employers entitled to cast a majority of all the votes that might be cast at the meeting if all the employers entitled to vote were present thereat shall be required to carry any question. (f) Any employer in this Subdivision shall be eligible for mem- bership in The Locomotive Institute. (g) Code Authority may adopt rules and regulations to govern its procedure and employ such personnel as it may deem necessary. (h) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for adminis- trative purposes into various groups or product classifications. There shall be a Group Code Authority approved or appointed by Code Authority for each such group or product classification. (i) If formal complaint is made to Code Authority that provi- sions of this Supplemental Code have been violated by any em- ployer Code Authority or the proper Group Code Authority may cause such investigation or audit to be made, to the extent per- mitted by the Act, as may be deemed necessary. If such investiga- tion is made by Group Code Authority it shall report the result of such investigation or audit to Code Authority for action. Article VI — ISIodifications (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 Administrator, be from time to time amended, revised, added to or supplemented. Any amendments or revisions of or additions or supplements to this Supplemental Code proposed by Code Au- thority and adopted at a meeting of employers by the vote of em- ployers entitled to cast at least two-thirds of all the votes that might be cast at a meeting of employers if all the employers then entitled to vote were present thereat, shall be in full force and effect upon approval by the Administrator. ArTICXE VII — WlTUl)I{AWAL As provided by Article IX of the Covere present thereat, withdraw from the jurisdiction of Basic Code Authority. Thereafter this Supplemental Code, together with the provisions of the Code, except such portions of Articles I, II, VI and Vll thereof as are not pertinent thereto, as determined by Code Authority and the Administrator, shall become the Code governing this Subdivision and Code Authority shall, for this Subdivision, become the sole Code Authority and shall perform all the functions thereof with respect to such Code. Article VIII — 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 construed or applied 60 as to oppress or eliminate small enterprises or discriminate against tliem, and is designed to effectuate the policy of the Act. Article IX — Effectia-e Date This Supplemental Code shall become effective and binding on all employers engaged in the Subdivision on the eleventh (11th) day after its approval by the Administrator. Approved Code No. 347 — Supplement No. 3. Begistry No. 1312-07. o UNIVERSITY OF FLORIDA 3 1262 08583 0676