Approved Code No. 347 — Supplement No. 10 Registry No. 1318—04 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MECHANICAL LUBRICATOR INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JUNE 4, 1934 UNiV.QFFLl.it. ,mJ: u.s. oEPomrom ■ i ii rfi» ■■ DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale 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. 347 — Supplement No. 10 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MECHANICAL LUBRICATOR INDUSTRY As Approved on June 4, 1934 ORDER Supplementary Code of Fair Competition for the Mechanical Lubricator 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 Mechanical Lubricator Subdivision of Machinery and Allied Products Industry, and hear- ings 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 condition 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 effective date of price lists, as originally filed and/or revised price lists or revised terms and con- ditions of sale, be and they hereby are stayed pending my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended: A. R. Glancy, Division Administrator. Washington, D.C., Jime 4, 193Jf. 65035° 657-22— — 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Competi- tion for the Mechanical Lubricator 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 provisions of Title I of the National Industrial Recovery Act. Every person who filed a request for an appearance was freely heard in public and all statutory and regulatory requirements were com- plied with. GENERAL STATEMENT The Mechanical Lubricator Association being truly representative of this Subdivision of the Machinery and Allied Products Industry, has elected to avail itself of the option of submitting a Supplemental Code of Fair Competition, as provided in paragraph (2), Article I of the Basic Code for the Machinery and Allied Products Industry approved by you on the seventeenth day of March, 1934. This Subdivision represents a part of the capital goods industry, manufacturing and selling power-driven force-feed lubricators for cylinders and bearings of Diesel engines and other internal combus- tion engines; for cylinders and bearings of steam engines; for cylin- ders and bearings of all types of compressors ; for automatic lubri- cation of all types of machinery requiring lubricants to be fed to moving parts; and parts thereof. ECONOMIC EFFECT In 1929 this Subdivision of the Industry employed approximately 268 persons, including office employees. Approximately 214 of the total persons employed, or 80 percent, were estimated to have been factory wage earners. Since 1929 total factory employment declined from 214 workers to 79 in 1932 or 63 percent, and increased in 1933 to 96 or 22 percent as compared with the previous year. Estimated annual sales in 1929 amounted to $1,408,000 and declined to $116,000 in 1933, or 92 percent. Based on summarized National Recovery Administration ques- tionnaire returns as of June 15, 1933, it is estimated that approxi- mately 35 percent of all factory workers worked more than 40 hours per week and that 12.8 percent received less than 40 cents per hour, 10.5 percent received less than 38 cents per hour and that 8.0 and 3.5 percent received less than 36 cents and 32 cents per hour respec- tively. Based on the percentage distribution of June 15, 1933, the adoption of the minimum wage rates provided in the Supplemental Code will probably cause a small increase in the weekly payrolls, (2) assuming only increases in the brackets below the 40 cents minimum and no change in man-hours. Average hours worked declined from 46.7 in June, 1929 to 34.9 hours in June, 1933, and increased thereafter to 37.5 hours in No- vember, 1933. Estimated average man-hours per week declined from 9,994 in June 1929 to 3,600 in November, 1933, or 64 percent. Until there is a further increase in man-hour requirements, the adoption of the 40-hour week will not cause an increase in employment in this Subdivision of the Industry. RESUME OF THE SUPPLEMENTAL CODE Article I states the purpose of the Supplemental Code. Article II accurately defines specific terms employed in this Sup- plemental Code. Article III : The labor provisions of the Basic Code for the Ma- chinery and Allied Products Industry as approved March 17, 1934, are incorporated by reference as the labor provisions of this Sup- plemental Code. Article IV adopts the relevant portions of Article II " Definitions " and Article VI, " Adminstration " ; and Articles VIII, "Modifica- tions and Termination ", and IX, " Withdrawal " of the Basic Code for the Machinery and Allied Products Industry, as approved March 17, 1934. Article V establishes a Code Authority consisting of three mem- bers. The Administrator in his discretion may appoint one addi- tional member (without vote and without expense to the Subdivi- sion). Together with the applicable provisions of the Basic Code, mechanism is provided for the administration of this Supplemental Code. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides for the determination of a lowest reasonable cost during an emergency caused by destructive price-cutting. The Administrator may approve, disapprove or modify the determina- tion. Article VIII provides for methods of setting up, revising and filing price lists and discount sheets and terms of sale and payment. Article IX sets forth the fair trade practices which have been especially designed to effect fair competition in this Subdivision. Article X defines export territory and provides that filed price lists are not applicable to export shipments. Article XI contains the mandatory provisions contained in Sec- tion 10 (b) of the Act, and also provides for the submission of pro- posed amendments to the Supplemental Code. Article XII provides for the withdrawal of this Subdivision from jurisdiction of the Basic Code Authority and for the continued functioning of this Subdivision as an individual industry under its own code. Article XIII stipulates that there shall be no inequitable restric- tions and provides against monopolies. Article XIV gives the effective date of this Supplemental Code. 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 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 organi- zation of industry for the purpose of cooperative action among the trade groups by inducing and maintaining the 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 standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs 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 association is an industrial association truly representative of the aforesaid subdivision of the industry; and that said associa- tion 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 elim- inate or oppress small enterprises and will not operate to discrimi- nate 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, provided that certain provisions relating to price publication are stayed as stated in the Order. Respectfully, Hugh S. Johnson, Administrator. June 4, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE MECHANICAL LUBRICATOR INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recov- ery Act, the following provisions are established as a Supplemental Code for the Mechanical Lubricator Subdivision of the Machinery and Allied Products Industry, and together with the Code of Fair Competition of Machinery and Allied Products Industry, shall be the standard of fair competition for this Subdivision, and shall be binding on every employer therein. Article II — Definitions "Applicant " means the Mechanical Lubricator Association, a trade organization, which organization is truly representative of this Subdivision, all members of which are engaged in the manufac- ture for sale of the products of the Mechanical Lubricator Subdi- vision 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, and as such definition may from time to time be amended. " Subdivision " means the Mechanical Lubricator Subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph 19. Article II of the Code of Fair Competition of the Machinery and Allied Products Industry as follows : " Mechanical Lubricator Subdivision means the manufacture or assembly for sale of power-driven force-feed lubricators for cylinders and bearings of Diesel engines and other internal combustion en- gines; for cylinders and bearings of steam engines; for cylinders and bearings of all types of compressors; for automatic lubrication of all types of machinery requiring lubricants to be fed to moving parts; and parts thereof, and includes all those engaged in such manufacture or assembly for sale. It does not include force-feed lubricators for steam railway locomotives or pressure oiling systems for automotive vehicles or force-feed lubricators when manufactured as part of another product by the manufacturers of such other prod- uct. Employers otherwise engaged in the Farm Equipment Indus- try may manufacture for sale and sell mechanical lubricators as used or sold in connection with trucks and tractors, under the pro- visions of the Code of the Farm Equipment Industry and not under the provisions of this Code." " Code " means the Code of Fair Competition of the Machinery and Allied Products Industry as approved by the President, March 17, 1934, and as from time to time amended. (5) 6 " 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 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. " 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 Ma- chinery 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. " Publish " means to make available to the public. 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 "; Article VI, "Administration ", to the extent that they shall be ap- plicable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code ; Article VIII, " Modifica- tions and Termination " ; and Article IX, " Withdrawal ", are hereby adopted and 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. The Administrator in his discretion may appoint one additional member (without vote and without expense to the Subdivision). (c) The Applicant shall, by written notice sent by registered mail to all employers known to the Applicant, call a meeting of employers to be held within sixty (60) days after the effective date of this Supplemental Code for the purpose of adopting precedural rules and regulations for the election, organization and operation of the permanent Code Authority and electing a permanent Code Authority which shall consist of three members. The Administrator in his discretion, may appoint one additional member (without vote and without expense to the Subdivision). The permanent Code Author- ity so elected and appointed shall succeed the temporary Code Authority. Any vacancy on the Code Authority due to death, resignation, or because a member thereof has ceased to be connected with the Subdivision, 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 employers in this Subdivision, and by a vote similar to the vote by which the retired member was originally selected. (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 prepara- tion 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 proper pro rata share of the reasonable cost of administering this Supplemental Code as determined by Code Au- thority. Such assessments shall be pro rated on a basis of the amount of sales of the products of the Subdivision during the preceding calendar year, or other equitable basis. (e) Action by employers in any Subdivision meeting for the elec- tion of Code Authority shall be by vote of the employers entitled to vote as provided in Section (d) of this Article V, each such employer to have one vote only. Action by employers in any Sub- division meeting for the adoption of procedural rules, revisions or additions to the Supplemental Code, or the transaction of other business of the Subdivision under this Supplemental Code, shall be by vote of the employers in the Subdivision who are entitled to vote thereat as provided in Section (d), Article V of this Supple- mental Code and are present in person or by proxy duly executed and filed with Code Authority; cast and computed in the manner provided in Section (d), Article VI of the Code. All questions as to the number of votes which each employer shall be entitled to cast at any meeting of employers, other than the meeting held to vote for the election of the permanent Code Authority, shall be determined by Code Authority, in accordance with Section (d) Article VI of the Code. (f ) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for admin- istrative purposes. There shall be a Group Code Authority ap- proved or appointed by Code Authority for each such group. (g) If formal complaint is made to Code Authority that provi- sions of this Supplemental Code have been violated by any employer, Code Authority or the proper Group Code Authority may to the extent permitted by the Act, cause such investigation or audit to be made, as may be deemed necessary. If such investigation is made by Group Code Authority it shall report the result of such investi- gation or audit to Code Authority for action. 8 (h) The Code Authority may appoint a Trade Practice Com- mittee which shall meet with the Trade Practice Committees appointed under such other Codes as may be related to the Subdi- vision for the purpose of formulating fair trade practices to gov- ern 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 Reasonable Cost When the Code Authority determines that an emergency exists in this Subdivision and that the cause thereof is destructive price-cut- ting such as to render ineffective or seriously endanger the mainte- nance of the provisions of this Supplemental Code, the Code Author- ity 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 Ad- ministrator may approve, disapprove, or modify the determination. Thereafter, during the period of the emergency, it shall be an un- fair 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 will pay less therefor than the lowest reasonable cost of such products. When it appears that conditions have changed, the Code Author- ity, 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 Code Authority determines that in any 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 en- gaged in the manufacture of such product shall, within ten (10) days after notice of such determination, file with Code Authority a net price list, or a price list with 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 prod- uct, and Code Authority shall immediately publish and send copies thereof to all known employers who are cooperating under this Sup- plemental Code as described in Article V (d) and engaged in the manufacture of such specified products. 9 Revised price lists and/or discount sheets and/or terms of sale and payment may be filed from time to time thereafter with the Code Authority by any such employer, to become operative upon the date specified therein, but such revised price lists and/or discount sheets and/or terms of sale and payment shall be filed with the Code Author- ity ten (10) days in advance of the operative date. Copies thereof, with notice of the operative date specified, shall be immediately pub- lished and sent to all employers cooperating under this Supplemental Code as described in Article V (d), any of whom may file, if he so desires, revisions of his price lists and/or discount sheets and/or terms of sale and pajonent, which shall become effective upon the date when the revised price list and/or discount sheets and/or terms of sale and payment first filed shall go into effect. 1 (b) If and when Code Authority shall determine that in any 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 marketing conditions in the group are the same as, or similar to, the distribution or marketing condi- tions in the group where the use of price lists, with or without dis- count sheets and 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 specified product should be put into effect in such group, then each employer in such group shall within twenty (20) days after notice of such determina- tion, file with Code Authority net price lists or price lists and dis- count sheets, with terms of sale and payment, showing his 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 provided. Provided that 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 this Section unless affirmative consent to such determi- nation is given by a 66%% vote of employers who are at that time co- operating under this Supplemental Code as described in Article V (d), and are engaged in manufacturing such product. The eligi- bility requirements, method, and effect of such voting shall be the same as is provided by Article V. (c) Code Authority for the purpose of determining the lowest reasonable cost shall to the extent permitted by the Act, have power, on its own initiative, or on the complaint of any employer, to inves- tigate any price or the terms of sale and payment for any product of any employer; and, for the purpose of the investigation thereof, to require such employer to furnish such information concerning the cost of manufacturing and selling such product as Code Authority shall deem necessary or proper for such purpose, and as the Act may allow. No employer shall sell directly or indirectly by any means what- soever, any product of the Subdivision covered by provisions of this Article VIII at a price or at discounts or on terms of sale and pay- ment, different from those provided in his own current net price lists, or price lists and discount sheets, and terms of sale and payment. 1 See paragraph 2 of order approving this Code. 10 Article IX — Trade Practices 1. 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 a member of the industry secretly offer or extend to any cus- tomer any special service or privilege not extended to all customers of the same class, for the purpose of influencing a sale. 2. 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 member 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, values, policies, services, or the nature or form of the business con- ducted. 3. 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. 4. No employer shall engage in destructive price cutting. Article X — Sales for Export The provisions of this Supplemental Code concerning pricing and marketing shall not apply to direct export sales of any product or to sales of any product destined ultimately for export. The term " export " shall include all shipments to all places without the sev- eral states of the United States and the District of Columbia; pro- vided, however, that no shipment to any territory or possession of the United States shall be considered an export when any employer is engaged in the Subdivision in such territory or possession. Article XI — Modifications (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) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority, and authorized by the affirmative vote of 66%% of the employers shall be in full force and effect upon approval by the President. The eligibility requirements, method and effect of such voting shall be the same as provided by Article V hereof. Article XII — Withdrawal Upon thirty days' notice to the Basic Code Authority and to the Administrator, this Subdivision may, upon the concurring affirma- tive vote of employers within the said Subdivision entitled to cast two-thirds or more of all the votes that might be cast by all em- ployers within the Subdivision entitled to vote thereon, withdraw from the jurisdiction of the Basic Code Authority. The eligibility of voters and the method and effect of such voting shall be in 11 accordance with the provisions of Article V hereof. After and in the event such withdrawal is accomplished this Supplemental Code, together with the provisions of the Code shall become and be the sole code governing this Subdivision, and the Code Authority shall for this Subdivision become and be the sole Code Authority and shall perform all the functions with respect thereto. Article XIII — 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 XIV — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval by the President. Approved Code No. 347 — Supplement No. 10. Registry No. 1318-4)4. O UNIVERSITY OF FLORIDA 3 1262 08583 0882