Code of fair competition for the tank car service industry as approved on May 22, 1934

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Title:
Code of fair competition for the tank car service industry as approved on May 22, 1934
Portion of title:
Tank car service industry
Physical Description:
p. 315-328 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Tank cars -- United States   ( lcsh )
Freight cars -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

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Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
"Registry No. 1414-07."
General Note:
"Approved Code No. 439."
General Note:
At head of title: National Recovery Administration.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004920800
oclc - 635964630
sobekcm - AA00006348_00001
System ID:
AA00006348:00001

Full Text

Approved Code No. 439 Registry No. 1414-07


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION

FOR THE


TANK CAR SERVICE

INDUSTRY


AS APPROVED ON MAY 22, 1934







R





WE DO OUR PART

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UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


For ale by the Superintendent of Documents. Washington, D.C. -- Price 5 centi























This publication is for sale by the Superintendent of Documents, Government
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Approved Code No. 439


CODE OF FAIR COMPETITION
FOR THE

TANK CAR SERVICE INDUSTRY

As Approved on May 22, 1934


ORDER

CODE OF FAIR COMPETITION FOR THE TANK CAR SERVICE 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 Code of
Fair Competition for the Tank Car Service Industry, and hearings
having been duly held thereon and the annexed report on said 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 Pres-
ident, 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 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 Code of Fair
Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
K. M. SIMPSON,
Division Administrator.
WASHINGTON, D.C.,
May 22, 1934.
1349---544-13--34 (315)












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: The original Code of Fair Competition for the Tank Car
Service Industry was submitted on October 4, 1933, by the Tank Car
Service Association, an unincorporated membership society organ-
ized in 1933, whose members are estimated to represent ninety-five
percent of the total volume of the Industry. Several revisions of
the Code were made prior to the public hearing, which public hearing
was held on February 16, 1934. The Code was revised during a
recess of this hearing and was presented in its present form for ap-
proval. Every person who requested appearance was properly
heard in accordance with the provisions of the Act.

ECONOMIC EFFECTS OF THE CODE

Employment in this Industry is relatively small in proportion
to invested capital. Peak employment was reached in 1929 and
totaled 2,250 employees. The figure for 1933 placed employment
for the first half of that year at 1,878 employees and the aggregate
invested capital amounted to approximately $92,500,000.
The annual volume of business reached its peak in 1929, with
forty-five concerns reporting gross revenues of approximately
$26,560,000. The gross revenues declined approximately forty per-
cent between 1929 and 1932, amounting to approximately $16,500,000
,in the latter year. The 1933 returns covering the first six months
indicate gross revenues of $8,047,000 and suggest a total for the cal-
endar year 1933 approximating that of the preceding year.

PROVISIONS OF THE CODE AS TO W.AGES AND HOURS

This Code limits the working week to forty hours and to six days,
and the working day to eight hours. Exceptions are permitted for
service employees who may be employed not in excess of forty-
four hours per week; also traveling and sales employees or persons
employed in a managerial or executive capacity, plant superintend-
ents, shop foremen and car inspectors receiving not less than thirty-
five dollars per week, and employees on emergency maintenance or
emergency repair work involving break-down, protection of life,
plant or tank cars or on emergencies occasioned by the necessity for
the services of specially skilled employees which cannot be cared
for by the employment of additional men, provided that in any
case, one and one-half times the normal rate shall be paid for hours
worked in excess of the maximum hours specified.
The Code provides a minimum rate of pay of forty cents per hour
for common labor and a minimum wage of fifteen dollars per week
for any employee paid on a weekly basis, including office employees.
(316)






317


The Code provides that on or before the effective date each em-
ployer who has not done so prior thereto shall make such equitable
adjustment of rates of pay of employees receiving more than the
minimum rates of pay as to maintain the existing differential in
weekly earnings as of June 16, 1933. However, in no event shall
hourly rates of pay be reduced. Further, all members of the Indus-
try shall submit to the Code Authority reports covering all adjust-
ments in rates of pay of employees since June 16, 1933, within four
weeks after the effective date of this Code.
The Code prohibits employment of persons under sixteen years
of age, or under eighteen years of age on operations or occupations
which are hazardous. Provisions are to be made for the safety and
health of all employees and a report submitted to the Administrator
within six months after the effective date of this Code.
FAIR TRADE PRACTICES

The business of the Industry consists of leasing tank cars to
railroad shippers. It has grown up because:
(1) Railroads never have assumed the responsibility of providing
specific equipment for transportation of this type service, and
(2) The Interstate Commerce Commission never has imposed
this requirement upon common carriers by rail.
Industrial concerns have organized and provide such equipment,
and railroads because of this rendered service (which leaves to them
only the responsibility of moving the traffic and no part in main-
taining or providing the equipment), in accordance with I.C.C.
determination, pay to the owner-shipper a mileage allowance of
11/2 for each mile the car is hauled.
The terms upon which equipment has been leased to individual
shippers vary with the practice of individual companies. They are:
(1) The small tank car lessors lease equipment on a trip basis
and are paid per diem for the use of their equipment for the period
which terminates with the end of the particular trip.
(2) Other lessors lease on a rental basis for a period of time
measured in terms of months.
(3) Large lessors make leases to supply the entire requirements
of the lessee covering a period of not less than one year and the
lessee, in turn, agrees that its entire tank car requirements shall be
supplied by the lessor.
The leading provisions as specified in the Code have the approval
of Industry Members owning approximately 95% of the tank cars
in service.
Investigation of practices heretofore existing in the Industry
indicate clearly the necessity for stabilizing rentals and preventing
excessive refunds of mileage allowances, to the extent of violation of
the Elkins Act. It is felt that no undue hardship on smaller units
of the Industry will be occasioned by the restrictions provided, and
that the Industry will become more stable, because of the staying of
excessive and unfair competition.
The Code provides that under emergency conditions the Code
Authority may cause to be established a rental minimum for tank





818


cars on each of the bases set forth and such minimum shall not be
more than the lowest reasonable cost of supplying tank cars as de-
termined by the Code Authority, it giving due consideration to and
taking into account all the proper cost factors. The Administrator
may approve, disapprove or modify the determinations of the Code
Authority.
FINDINGS

The Deputy Administrator in his final-report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial R eovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and manage-
ment under adequate governmental sanctions and supervision by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production, by increasing the con-
sumption 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 Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title I of said Act, including without liri-
tation 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 Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate 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
Code.
For these reasons this Code has been approved.
Respectfully,
HUGH S. JOHNSON,
Administrator.
MAY 22, 1934.











CODE OF FAIR COMPETITION FOR THE TANK CAR
SERVICE INDUSTRY

To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Tank Car Service Industry, and
its provisions shall be the standards of fair competition for such
Industry, and shall be binding upon every member thereof.

ARTICLE I-DEFMNITI NS

The. term "Industry as used herein means the Tank Car Serv-
ice Industry and is defined as the leasing or supplying (except as
to transactions between a parent company and its wholly owned
subsidiaries, or between wholly owned subsidiaries of the same
parent company, and except by railroads and other common car-
riers) of tank cars (other than tank cars known as I.C.C. Specifica-
tions Nos. 105A, 106A, 10TA, 108 and 108A) to others for the
transportation or handling of liquid or other comniodities.
The term Member of the Industry as used herein includes,
but without limitation, any individual, partnership, association,
corporation or other form of enterprise engaged in the Industry,
either as an employer or on his'or its own behalf.
The term "Lessor" shall include every member of the Industry
who leases or otherwise supplies, directly or indirectly, tank cars to
others.
The term "Lessee" shall include all of those who use tank cn rs
owned or operated by members of the Industry, except as herein
otherwise provided.
The term "Association" as used herein shall mean the Tank Car
Service Association.
The term "Lease" shall mean any arrangement whatsoever,
whether loaning, leasing, assigning, or otherwise, under which tank
cars are supplied by a Lessor to a Lessee.
The term "Employee" as used herein includes any and all per-
sons engaged in the Industry, however compensated, except a mem-
ber of the Industry.
The term Employer" as used herein includes anyone by whom
such employee is compensated or employed.
The term "President" shall mean the President of the United
States of America.
The term "Act" and "Administrator" as used herein shall
mean, respectively, Title I of the National Industrial Recovery
Act and the Administrator for Industrial Recovery.
The term "mileage allowance" shall mean the amounts paid by
carriers for mileage on tank cars of private ownership, pursuant to
the terms of the currently effective tariffs applicable thereto, filed
with the Interstate Commerce Commission.
(319)





820


ARTICLE I--HOURS
(a) No employee shall be permitted to work in excess of forty
(40) hours in any one week or eight (8) hours in any twenty-four
(24) hour period except as herein otherwise provided.
(b) Service employees such as watchmen, first aid attendants
janitors, switching crews or power plant employees may be employed
not in excess of forty-four (44) hours per week and eight (8) hours
shall be the normal working day.
(c) No person employed in clerical or office work shall be permit-
ted to work in excess of forty (40) hours per week. A normal work
day shall not exceed eight (8) hours.
(d) The provisions of this Article shall not apply to traveling and
sales employees or to persons employed in a managerial or executive
capacity, plant superintendents, shop foremen and car inspectors
receiving not less than thirty-five dollars ($35.00) per week; pro-
vided, however, that the limitations of paragraphs (a) and (b) shall
not apply to any employee on emergency maintenance or emergency
repair work, involving breakdowns or protection of life, plant or
tank cars, or on emergencies occasioned by the necessity for services
of specially skilled employees which can not be cared for by the em-
ployment of additional men, but in any such special case at least one
and one-half (11/) times the normal rate shall be paid for hours
worked in excess of the maximum provided in paragraphs (a) and
(b) above.
No employer shall knowingly permit any employee to work for
any time which, when totaled with that already performed for
another employer or employers, exceeds the maximum permitted
herein.
No employee shall be permitted to work more than six (6) days
in any seven (7) day period.
ARTICLE III-WAGES

(a) No employee shall be paid less than at the rate of 40 cents
per hour, provided, however, that the minimum wage that shall be
paid by any employer to any employee paid on a weekly basis, in-
luding office employees, shall not be less than at the rate of $15.00
per week.
(b) The rates specified shall apply whether calculated on an
hourly, daily, weekly, monthly, piecework or other basis.
(c) On or before the effective date hereof, each employer, who has
not done so prior thereto, shall make such equitable adjustment of
rates of pay of employees receiving more than the minimum rates
of pay as will maintain the existing differential in weekly earnings
as of June 16, 1933, provided, however, that in no event shall hourly
rates of pay be reduced.
(d) All members of the Industry shall submit in detail a report
to the Code Authority through the Secretary of the Association
covering.all adjustments in rates of pay of employees since June 16,
1933 within four (4) weeks after the effective date of this Code.
(e) A person whose earning capacity is limited because of age,
physical or mental handicap, or other infirmity, may be employee





321


on light work at a wage below the minimum established by this
Code, if the employer obtains from the State Authority, designated
by the United States Department of Labor, a certificate authorizing
such person's employment at such wages and for such hours as shall
be stated in the certificate. Each employer shall file monthly with
the Code Authority a list of all such persons employed by him, show-'
ing the wages paid to, and the maximum hours of work for such'
employee.
ARTICLE IV--GENERAL LABOR PROVISIONS
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry. No person under eighteen (18) years of
age shall be employed at operations or occupations which are haz-
ardous in nature or dangerous to health. The Code Authority shall
submit to the Administrator, on or before sixty (60) days after the
effective date of this Code, a list of such operations or occupations.
In any State an employer shall have on file a certificate or permit,
duly issued by the Authority in such State empowered to issue
employment or age certificates or permits, showing that the employee
is of the required age.
SECTION 2. (a) Employees shall have the right to organize and
bargain collectively through representatives of their own choosing,
and shall be free from the interference, restraint, or coercion of
employers of labor or their agents in the designation of such repre-
sentatives, or in self-organization or in other concerted activities
for the purpose of collective bargaining or other mutual aid or
protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, organizing, or assisting a labor organization
of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minmunu rates of pay, and other conditions of employment approved
or prescribed by the President.
SECTION 3. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the provisions of the Act or of this Code.
SECTION 4. Every employer shall provide for the safety and health
of his employees at the place and during the hours of their employ-
ment. Standards for safety and health shall be submitted by the
Code Authority to the Administrator within six (6) months after
the effective date of this Code.
SECTION 5. No provisions in this Code shall supersede any State
or Federal law which imposes more stringent requirements as to
age of employees, wages, hours of work, or as to safety, health, sani-
tary, or general working conditions, or insurance or fire protection,
than are imposed by this Code.
SECTION 6. No employee shall be dismissed by reason of making
a complaint or giving evidence with respect to a violation of this
Code.
SECTION 7. All employers shall post and keep posted copies of
wage, hour and labor provisions and of the definitions applicable
thereto in this Code in conspicuous places accessible to all employees.






322


Every member of the industry shall comply with all rules and
regulations relative to the posting of provisions of Codes of Fair
Competition which may from time to time be prescribed by the
Administrator.
ARTICLE V-CODE AUTHORITY

SECTION 1. A Code Authority is hereby constituted to cooperate
with the Administrator in the administration of this Code.
SECTION 2. The Code Authority, whose members shall serve one
year and until their respective successors are elected or appointed,
shall consist of (a) five persons (who shall respectively be repre-
sentatives of five different members of the Association) elected by
the Association, voting by tank cars, so that., in the election of such
five persons, each member of said Association shall have as many
votes as the number of tank cars owned by it; (b) two additional
persons elected by the Association, voting by individuals, so that, in
the election of such two persons, each member of the Association
shall have one vote, and no person shall be elected as one of said two
members of the Code Authority unless he shall have received the
vote of a majority of the members of the Association voting in such
election; (c) one person elected by the members of the Industry, if
any, who are not members of the Association, and, in default of such
election for thirty (30) days after the effective date of this Code,
the Association shall appoint, as such member, subject to the ap-
proval of the Administrator, an officer of one of the members of
the Industry (if any) not a member of the Association; (d) one
member at large who shall be the then president of the Association;
(e) not more than three persons appointed by the Administrator, but
the said member or members so appointed shall have no vote, and
shall serve without expense to the Industry.
In any election of members of the Code Authority any member of
the Industry owning all the stock or having the entire equitable
interest in a subsidiary or subsidiaries engaged in the Industry
shall, together with such subsidiary or subsidiaries, be considered
as and entitled to the rights of only one member of the Industry.
No two members of the Code Authority, elected as hereinabove
in Clauses (a), (b) and (c) provided, shall be officers of, employed
by, or representative of the same member of the Industry.
Any vacancy in the Code Authority shall be filled by unanimous
vote of the remaining members of the Code Authority at a meeting
regularly called and the member so chosen must be a non-member
of the then constituted Code Authority who shall serve until the
expiration of the term of the member whose office became vacant.
The Code Authority shall serve reasonable notice on all members
thereof of all meetings of the Code Authority.
SECTION 3. In order that the Code Authority shall at all times
be truly rprpesentative of the Industry and in other respects com-
ply with the provisions of the Act, the Administrator may pre-
scribe such hearings as he may deem proper; and thereafter, if he
shall final that the Code Authority is not truly. representative, or
does not in other respects comply with the provisions of the Act,
may require an appropriate modification in the method of the selec-
tion of the Code Authority.





323


SECTION 4. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose; nor shall
any member of the Code Authority be liable in any manner to any-
one for any act of any other member, officer, agent, or employee of
the Code Authority; nor shall any member of the Code Authority
exercising reasonable diligence in the conduct of his duties here-
under, be liable to anyone for any action or omission to act under
this Code, except for his own willful misfeasance or non-feasance.
SECTION 5. Subject to the right of the Administrator, on review,
to disapprove any action taken by the Code Authority, the Code
Authority shall, in addition to powers and duties otherwise pro-
vided in this Code, have the following powers and duties pertaining
to the administration of this Code:
(a) To adopt rules and regulations for its procedure.
(b) To receive complaints of violations of this Code, except
labor complaints and disputes, make investigations thereof and
bring to the attention of the Administrator for prosecution, recom-
mendations and information relative to unadjusted violations.
(c) To coordinate the administration of this Code with such other
Codes, if any, as may be related to the Industry, or any subdivision
thereof, and to delegate to any other administrative authority, with
the approval of the Administrator, such powers as will promote
joint and harmonious action upon matters of common interest.
(d) To consider and make recommendations for the modification
of or an amendment to this Code.
(e) To obtain from members of the Industry such information
and reports as are required for the administration of the Code and
to provide for submission by members of such information and re-
ports as the Administrator may deem necessary for the purposes re-
cited in Section 3 (a) of the Act, which information and reports
shall be submitted by members to such administrative or government
agencies as the Administrator may designate; provided, that nothing
in this Code shall relieve any member of the Industry of any existing
obligations to furnish reports to any government agency. No indi-
vidual reports shall be disclosed to any other member of the In-
dustry or any other party except to such governmental agencies as
may be directed by the Administrator.
(f) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
SECTION 6. If the Administrator shall determine that any action
of a Code Authority, or any agency thereof, may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended, to afford an opportunity for investi-
gation of the merits of such action and further consideration by such
Code Authority or agency pending final action, which shall not be
effective unless the Administrator approves, or unless he shall fail
to disapprove, after thirty (30) days' notice to him of intention to
proceed with such action in its original or modified form.





324


SECTION 7. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Au-
thority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the Administrator true copies of its articles of
association, by-laws, regulations, and any amendments when made
thereto, together with such other information as to membership,
organization, and activities as the Administrator may deem neces-
sary to effectuate the purposes of the Act.
SECTION 8. (1) It being found necessary to support the Adminis-
tration of this Code, in order to effectuate the policy of the Act and
to maintain the standards of fair competition established hereunder,
the Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes and to meet such obligations out
of funds which shall be held in trust for the purposes of the Code
and raised as hereinafter provided;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
1. An itemized budget of its estimated expenses for the foregoing
purposes; and
2. An equitable basis upon which the funds necessary to support
such budget shall be contributed by all members of the Industry
entitled to the benefits accruing from the maintenance of such
standards, and the administration thereof;
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and collect equitable
contributions as above set forth, and to that end, if necessary, to
institute legal proceedings therefore in its own name.
(2) Each member of the Industry shall be liable for his or its
equitable contribution to the expenses of the maintenance of the
Code Authority as Ifereinabove provided. Only members of the
Industry complying with the Code and making such contribution
shall be entitled to participate in the selection of the members of the
Code Authority or to receive the benefits of its voluntary activities
or to make use of any N.R.A. insignia.
ARTicLE VI-LEASES

(a) When the Code Authority determines that an emergency
exists in this Industry and that the cause thereof is destructive
price cutting such as to render ineffective or seriously endanger
he maintenance of the provisions of this Code, the Code Authority
may cause to be established a Code minimum for tank cars on each
of the bases hereinafter mentioned; and such minimum shall not be
more than the lowest reasonable cost of supplying tank cars as
determined by the Code Authority by giving due consideration to
and taking into account all proper cost factors and providing a
reasonable differential between rentals on bases 1 and 2 herein; such
determination to be subject to such notice and hearing as the
Administrator may require. The Administrator may approve, dis-
approve, or modify the determination. Thereafter, during the
period of the emergency, it shall be an unfair trade practice for any





325


member of the Industry to supply tank cars below the Code mini-
mum. When it appears that conditions have changed, the Code
Authority, upon its own initiative or upon the request of any inter-
ested party, shall cause the determination to be reviewed.
(b) No lessor shall make any new lease or renew, revise, or extend
any existing lease of tank cars, whether operated under lessor's or
lessee's reporting marks, without a stipulated charge or rental,
and such new, renewed, revised, or extended lease shall be on any
one of the bases provided in subsections 1, 2, or 3 of this section,
and on no other basis.
1. If the stipulated charge or rental is a stated amount of money
per day: the lease shall be for a definite number of specific size
and type of cars; the lessor must receive and retain all mileage
allowance; the lessor shall not permit the lessee to receive and
retain any credit or refund on account of mileage allowance, ex-
cept that the lessor may give a credit or refund on account of mile-
age allowance, earned during the period the lessor is actually charg-
ing the lessee rental, up to but not exceeding the amount of such
rental, and the stipulated charge or rental shall be charged for
every day from the date the car is made available by the lessor
for loaning until the date the car is unloaded or released by the
lessee, including both dates, and shall not be less than the Code
minimum per day provided for in this Article VI.
2. If the stipulated charge or rental is a stated amount of money
per month: the lease shall be for a definite term of not less than
a month and for a definite number of specific size and type of cars;
and the lessor shall not permit the lessee to receive and retain,
any mileage allowance or credit or refund on account of mileage
allowance in excess of the stipulated charge or rental; and the
lessor shall receive and retain all mileage allowance in excess of said
stipulated charge or rental; and the stipulated charge or rental
shall commence not later than the date when the car is made avail-
able by the lessor for initial loading and shall continue until (on
or after the expiration of the lease) the car is unloaded and released
by the lessee, and such stipulated charge or rental shall not be less
than the Code minimum per month or portion thereof provided
for in this Article VI. For the purpose of determining the excess
of mileage allowance over the stipulated charge or rental, such
mileage allowance shall be averaged over a period or periods of
twelve (12) months commencing with the date of the lease, or if
the lease is for a shorter period, shall be averaged over the term of
the lease.
3. If the stipulated charge or rental is not a stated amount of
money: the lessor must contract to supply the entire requirements
of the lessee for tank car equipment for a period of not less than
one (1) year; the lessor must receive and retain all mileage allow-
ance; the lessor shall not permit the lessee to receive or retain any
credit or refund on account of mileage allowance; and the total
amount of charge or rental received by lessor from lessee under such
lease, plus mileage allowance, averaged annually shall not be less
than the Code minimum per month or portion thereof provided
for in this Article VI, for subsection 2 above.




326


(c) All rental charges shall be billed monthly, and shall be pay-
able within sixty (60) days of billing, and no credit shall be ex-
tended by any lessor beyond said period of sixty (60) days.
(d) This Code shall not apply to leases between a parent com-
pany and a wholly owned subsidiary, or between wholly owned
subsidiaries of the same parent company, but this section shall not
in any other respect exempt such parent company or wholly owned
subsidiary from the provisions of this Code.
(e) Tank cars actually used by railroads in emergency cases to
protect life and property shall not be subject to the provisions of
this Article VI.
(f) Leases under bases 2 and 3 of this Article VI shall be in
writing. Leases under basis 1 of this Article shall be made and
the terms thereof defined before the car is loaded and shall, within
twenty-four hours after the making of the lease, be confirmed in
writing by the lessor, who shall make it a condition of the trans-
action that the lease shall be confirmed by the lessee within twenty-
four hours after receipt by the lessee of confirmation from the
lessor.
ARTICLE VII-PARTICIPATION

Participation in the selection of the Code Authority, and in the
benefits of its activities, and the N.R.A. insignia is governed by the
provisions of Article V, Section 8,'paragraph 2, hereof:
ARTICLE VIII-REPORTS BY LEssons

With a view to keeping the President and Administrator in-
formed as to the observance or non-observance of this Code, and
as to whether the Industry is taking appropriate steps to effectuate
in all respects the declared policy of the Act, each lessor shall pre-
pare and file with the Code Authority bi-monthly a sworn state-
ment that such lessor has not, subsequent to the effective date
hereof, made, renewed, revised or extended any lease at rates below
the Code minimum for supplying such tank cars, established pur-
suant to the provisions of Article VI hereof. No such statement
shall be disclosed to any other member of the Industry or any other
party except to such Governmental agencies as may be directed by
the Administrator.
ARTICLE IX-MONOPOLIES

No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE X-UNFAIR TRADE PRACTICES

The following shall constitute unfair trade practices and a vio-
lation of this Code:
(a) Cutting rentals for tank cars below the Code minimum, as
established pursuant to the provisions of Article VI, hereof, or
quoting rentals below such minimum;




827


(b) Giving, permitting to be given, or directly offering 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. 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;
(c) Purchasing or selling anything which any lessor may purchase
from or sell to any lessee or prospective lessee at a price which,
in effect would be equivalent to reducing the price of leasing tank
cars below the Code minimum;
(d) Rendering any service, not customarily rendered, at less than
the cost of such service to the lessor;
(e) Inducing, or attempting to induce, by any means, any party to
a contract with a lessor to violate such contract:
(f) Making any installment sale of used tank cars where in any
purchase installment is less in amount than at the rate of the Code
minimum as established under the provisions of Article VI hereof
or wherein the maintenance of cars is at the seller's expense;
(g) Purchasing, selling, assigning, loaning, or exchanging, or
engaging in any transaction with reference to, any tank car for the
purpose of evading this Code;
(h) Paying the lessee more than the prevailing prices in the Amer-
ican Railway Association Code of Rules for Interchange of Freight
Cars for any repairs made by lessee for lessor's account;
(i) Waiving any charge, or making any refund or allowance of
any part of rental or mileage allowance which shall violate the pro-
visions of Article VI, except that a pro rata refund or allowance on
cars held for repairs for more than five (5) days after the day a car
is placed in the shop for repairs may be made for any excess over
five (5) days;
(j) Painting or stenciling cars in excess of requirements in
American Railway Association Specifications for Tank Cars when
done by lessor for lessee for less than cost as such cost shall be es-
tablished by the Code Authority; or making refund allowance to
lessee for such painting or stenciling when done by lessee.
(k) Furnishing or substituting any different size or type of tank
car than that specified and charged Tor in any lease except in cases
of emergency, and in all such exceptional cases a full explanation
shall be immediately filed with the Code Authority through the
Secretary of the Association;
(1) Permitting the subletting of lessor's cars without the written
consent of lessor, or permitting any arrangement for the purpose
of evading the Car Demurrage Rules as published in tariffs lawfully
filed from time to time with the Interstate Commerce Commission;
(m) Leasing or supplying any tank car to a railroad except for
handling its own material, and then only if the arrangement with
the railroad shall be evidenced in writing by an undertaking of the
railroad not to permit the use of the car for any other purpose.




UNIVERSITY OF FLORIDA


328 3 1262 8336 459 5
ARTICLE XI-MODIFICATION AND AMENDMENT

(a) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Section 10 (b) of the Act, from time to time to cancel or
modify any order, approval, license, or rule or regulation issued
under Title I of said Act and specifically to the right of the Presi-
dent to cancel or modify his approval of this Code, or any condi-
tions imposed by him upon his approval thereof.
(b) This Code except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances.
Such modification to be based upon application to the Administrator,
and such notice and hearing as he shall specify, and to become effec-
tive on approval of the President; provided, however, that after the
effective date of this Code, no modification, amendment, or elimina-
tion of any provision thereof, nor any addition of any new provision
thereto, shall be made (except by the President pursuant to the terms
of the Act) unless approved both by a majority of the members of
the Tank Car Service Association and of the members of the Asso-
ciation representing companies owning and operating a majority
of the cars represented in the Association.

ARTICLE XII-EFFECTIVE DATE

This Code shall become effective on the second Monday after its
approval by the President.

ARTICLE XIII

The provisions of this Code shall be without prejudice to the
exercise of any lawful jurisdiction or power of any lawfully con-
stituted Federal or State regulatory body.
Approved Code No. 439.
Registry No. 1414-07.