/ Approved Code No. 347 — Supplement No. 12 Registry No. 1399 — 65A NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JUNE 5, 1934 WE DO OUR PART UNIV. OF FL LIB. DOCUMFMil.DIPI. L^ Ann U.S. DEPO' UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superinfen'Jent of Documents, Washington, D.C. Pr'ce 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. 12 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LOCOMOTIVE APPLIANCE INDUSTRY As Approved on June 5, 1934 ORDER Supplementary Code of Fair Competition for the Locomotive Appliance Industry A DI\^SION 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 Locomotive Appliance 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 incori^orate 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 : A. R. Glancy, Division Administrator. Washington. D.C, June 5, 193Jf. 65341°— G5T-25 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 Locomotive Appliance Subdivision of the Machinery and Allied Products Industry^ Public Hearing having been conducted thereon in Washington, D.C., April 27, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Locomotive Appliance Institute being truly representative of this Subdivision of the Machinery and Allied Products Industry, has submitted 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 Appliance Industry is a capital goods industry being engaged in the manufac- ture and/or sale of appliances, devices or attachments and replace- ments thereof specially designed and manufactured for use in the construction or repairing of locomotives as used for tractive power. ECONOMIC EFFECT This Subdivision suffered considerably from the effects of the Depression. The aggregate annual sales of the Subdivision declined from $24,855,000 in 1929 to $3,818,000 in 1933 or eighty-four per cent while the aggregate production capacity remained about the same at approximately $24,000,000 and the aggregate invested capital ,at about $30,000,000. Estimated employment of factory workers declined from 1,975 in 1929 to a minimum of 910 in the first quarter of 1933 or 53.9%, and increased thereafter to approximately 1,244 in November 1933 or 36.7% over the first quarter of 1933. Employment in November 1933 was 37% below tlie 1929 leveL Thirty-eight per cent of the factory v;orkers were working more than forty (40) hours per week during a representative week of June 1933. The average work-week declined from 50.5 hours in 1929 to 33.8 hours in June 1933, and then increased to 35.9 in Novem- ber 1933. Due to the fact that the Subdivision in November 1933 was operat- ing on a 35.9 hour week, probably no increase in emplojmient may be expected as a result of the adoption of a forty-hour week, FINDINGS The Deputy Administrator in his final report to me on said Supple- mental Code having found as herein set forth and on the basis of all the proceedings in this matter : (2) 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 interstate and foreign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organiza- tion of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining imited 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 consinnption 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) Said subdivision normally emploj^s not more than 50,000 emploj^ees; and is not classified b}' me as a major industry. (c) The Supplemental Code as approved complies in all respeds 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 association truly representative of the aforesaid Subdivision of the Industry; and tnat 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 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. Respectfully, Hugh S. Johnson, Administrator. June 5, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LOCOMOTIVE APPLIANCE INDUSTRY A DI^TSION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supple- mental Code of Fair Competition for the Locomotive Appliance Subdivision of the Machinery and Allied Products Industry, and taken together with the Code of Fair Competition of Machinery and Allied Products Industry, to which it is a supplement, shall be the standard of fair competition for this Subdivision, and shall be binding on each employer therein. Article II — Definitions "Applicant" means the Locomotive Appliance Institute, a trade organization, all members of which are engaged in the manufac- ture and/or sale of the products of the Locomotive Appliance Sub- division 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 Code of Fair Competition as approved by the President and as such definition may from time to time l>e amended. " Subdivision " means this Locomotive Appliance Subdivision of the Machinery and Allied Products Industry as defined and set forth in Article if as amended, of the Code of Fair Competition of the Machinerv and Allied Products Industry as follows : " Locomotive Appliance Subdivision " means the manufacture and/or sale of appliances, devices or attachments and replacement parts thereof specially designed and manufactured for use in the construction or repairing of locomotives as used for tractive power ; provided, however, that such appliances, devices, and/or attachments and replacement parts thereof when manufactured by builders of the aforesaid locomotives or when within the scope of another code are not included in this code. " Code " means the Code of Fair Competition of the Machinery and Allied Products Industry, as approved by the President 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 in his own behalf or as an employer of labor. " Employee " means anyone who is employed in the Subdivision by any such employer. (4) "The Act" means Title I of the National Industrial Kecovery 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 in the Code. " Code Authority " means the Code Authority constituted for this Subdivision, as provided by the Code and by this Supplemental Code. Article III — Adoption of 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, Avith the same effect as if they were written into this Supplemental Code. Article IV — Adoption of Other Ppovisions of Code The following Articles of the Code, viz : Article VI, "Administra- tion ", to the extent that it shall be applicable to the administration of this Supplemental Code as such or as it may hereafter be admin- istered as an autonomous Code; Article VIII. "Modifications and Termination "; Article IX, " Withdrawal " and Article X, " Monop- olies " are hereby made a part hereof with the same efiect 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 pro- vided in the Code and in this Supplemental Code. Such Code Authority shall consist of : . (1) The Executive Committee of the Locomotive Appliance in- stitute, consisting of three members. • _ (2) One additional member to be elected m any fair manner, with the approval of the Administrator, by employers in this Sub- division entitled to vote thereon, as hereinafter provided, who are not members of the Applicant, if so desired by such nonmembers. (3) The Administrator may in his discretion appoint one addi- tional member, (without vote and without expense to the Subdivi- ^^ (b) Code Authority may adopt rules and regulations to govern its procedure and employ such personnel as it may deem necessary. (c) Any employer in this Subdivision shall be eligible for mem- bership in the Locomotive Appliance Institute. (d) Any employer shall be entitled to vote, subject to the provi- sions of section (a) of this Article, at the election of the elective member of Code Authority and at other meetings of employers and share in the benefits of the activities of Code Authority and niay 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 as and when assessed his or its proper pro rata share of the cost of preparing, sub- mitting and administering this Supplemental Code, as determined by Code Authoritj^ The cost of preparing, submitting and adminis- tering this Supplemental Code shall be borne by emploj^ers pro rata in the proportions that the amount in dollars of the j^early average net sales of products of the Subdivision made by the respective em- ployers during the five preceding calendar years bears to the aggre- gate of the amount in dollars of the yearly average net sales of prod- ucts of the Subdivision made by all employers during such five preceding calendar years, (e) If formal complaint is made to Code Authority that provi- gioiis of this Supplemental Code have been violated by any employer, the Code Authority may cause such investigation or audit to be made, to the extent j^ermitted by the Act, as may be deemed necessary. Article VI — Unfair Pilyctices Each of the following acts and practices is deemed to be inimical to the best interests of the Subdivision, and of the public, and each is, therefore, hereby declared to be and to constitute, an unfair method of competition, viz : 1. No employer shall give, permit to be given, or offer to give •anything of value for the purpose of influencing or rewarding the 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. Commercial bribery provisions shall not be construed 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. 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, equality, quantity, origin, size, substance, character, na- ture, finish, material, content or preparation) or credit terms, val- ues, policies, services, or the nature or form of the business conducted. 3. It shall be an unfair trade practice in the Subdivision to engage in destructive price cutting. Article VII — Sales for Export No provision of this Code relating to prices or terms of selling, shipping or marketing, shall apply to export trade or sales or ship- ments for export trade. " Export Trade " shall be as defined in the Export Trade Act adopted April 10, 1918. Article VIII — Modifications (a) As provided by Sections 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. Any amendments or revisions of or additions or supplements to this Supplemental Code proposed by Code x\uthority and adopted at a meeting of emploj^ers by the concurring affirmative vote of emp)loyers entitled to cast at joast two-thirds of all the votes that might be cast at a meeting of employers if all employers then entitled to vote were present thereat, shall be in full force and effect upon approval by the President. Article IX — Withdrawal As provided by Article IX of the Code, upon thirty (30) days notice to Basic Code Authority and to the Administrator, this Sub- division may, at a meeting of employers, by the concurring affirma- tive vote of employers entitled to cast at least two-thirds of all the votes that might be cast at such a meeting if all the employers then entitled to vote were present thereat, withdraw from the jurisdiction of Basic Code Authority. Thereafter, this Supplemental Code, to- gether with the provisions of the Code, except such portions of Arti- cles I, II, VI and VII thereof, as are not pertinent thereto as determined by the Code Authority and the Administrator, shall become the Code governing this Subdivision and the Code Authority shall for this Subdivision become the sole Code Authority and shall perform all the functions thereof with respect to such Code. Article X — 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 so as to oppress or eliminate small enterprises or discriminate against them and is designed to effectuate the policy of the Act. Article XI — Ejtective Date This Supplemental Code shall become effective and binding on all employers engaged in the Subdivision on the eleventh day after its approval by the President. Approved Code No. 347 — Supplement No. 12. Registry No. 1399-65A. o UNIVERSITY OF FlOHlDA 3 1262 08850 5119