NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COAL CUTTING MACHINE
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JANUARY 4, 1935
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Approved Code No. 347-Supplement No. 46
Registry No. 1414-15
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Approved Code No. 347-Supplement No. 46
SUPPLEMENTARY CODE OF FAIR COMPETITION
COAL CUTTING MACHINE INDUSTRY
As Approved on January 4, 1935
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE COAL CUTTING
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 Coal Cutting Machine In-
dustry, and hearing 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, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise;
does hereby incorporate by reference said annexed report and does
find that said Supplemental Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
of said Title of said Act; and does hereby order that said Supple-
mental Code of Fair Competition be and it is hereby approved, sub-
ject to the following conditions:
(1) That the provisions of Section 7 of Article VI be and they
are hereby stayed.
(2) That within sixty (60) days the Coal Cutting Machine Man-
ufacturers' Association amends Section 3 of Article IV of its By-
Laws by deleting the words "and further, assents to the Code or
Codes of the Industry".
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Officer.
BARTON W. MURRAY,
Division Admini strator.
WASHINGTON, D. C.,
January 4, 1935.
REPORT TO TIHE PRESIDENT
The White House.
Smi: This is a report on the Supplemental Code of Fair Competi-
tion for the Coal Cutting Machine Subdivision of the Machinery
and Allied Products Industry, Public Hearing having been con-
ducted thereon in Washington, D. C., September 25, 193, in accord-
ance with the provisions of Title I of the National Industrial
The Coal Cutting Machine Subdivision, being truly representa-
tive of the manufacturers of the products defined in Article II of the
Supplemental Code, has elected to formulate and submit a Supple-
mental Code of Fair Competition as provided in the second para-
graph of Article I of the Code of Fair Competition for the Ma-
chinery and Allied Products Industry, approved by you on the
seventeenth day of March, 1934.
The Subdivision includes the manufacturing and/or assembling
for sale and selling by the manufacturer and/or assembler, of coal
cutting machines most commonly used underground in coal mines,
but which may be used in the production of other minerals such as
rock salt, potash, and gypsum. Included in the manufacturing
and/or assembling for sale and selling of coal cutting machines are
spare, repair and replacement parts thereof and supplies and/or
equipment incident thereto when manufactured and/or sold by a
manufacturer of such coal cutting machines.
Statistical material bearing on this Subdivision was obtained
from the code application submitted by the Coal Cutting Machine
Manufacturers' Association. The above-mentioned association
claims to represent 95 per cent of the entire Subdivision measured
by dollar volume of business.
Annual sales in 1933, according to the association, declined to less
than one-third the 1929 level. In 1929 sales were reported at $6,965,-
500 and in 1933 at $2,005,700.
Estimates showing employment for the entire subdivision, sub-
mitted by the association, indicate that employment declined from
1482 in 1929 to 847 in 1933, or 42.8 per cent.
RESUME OF SUPPLEMENTAL CODE
Article I states the purposes of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment provisions
of the National Industrial Recovery Code of the Machinery and
Allied Products Industry, as approved by you, and as from time to
Article IV provides for the adoption of Articles II, VI and VIII
of the National Industrial Recovery Code of the Machinery and
Allied Products Industry, in accordance with the conditions of this
Article governing their adoption.
Article V provides for the establishment of a Code Authority and
defines its powers and duties.
Article VI sets forth trade practices for the Subdivision.
Article VII states that no provision of this Supplemental Code
relating to pricing and marketing shall apply to export sales as
defined by the term Export" in this Article.
Article VIII provides that this Supplemental Code and all the
provisions thereof are expressly made subject to the right of the
President, in accordance with Subsection (b) of Section 10 of the
Act, from time to time to cancel or modify any order, approval,
license, rule or regulation issued under said Act. Provision is also
made that modifications may be submitted by the Code Authority
to the National Industrial Recovery Board for approval.
Article IX provides means for withdrawal of this Subdivision
from the jurisdiction of the Basic Code Authority and its continu-
ance under its own Code Authority.
Article X states that no provision of this Supplemental Code shall
be so applied as to permit monopolies, or monopolistic practices, or
to eliminate, oppress, or discriminate against small enterprises.
Article XI states the effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to the
National Industrial Recovery Board on said Supplemental Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
The National Industrial Recovery Board finds that:
(a) Said Supplemental Code is well 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 organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor and
management under adequate governmental sanctions and supervi-
sion, by eliminating unfair competitive practices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption 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 the National Industrial Recovery
Board 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 Industry; and that said association imposes no
inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not
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
For these reasons, therefore, the National Industrial Recovery
Board has approved this Supplemental Code.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
JANUARY 4, 1935.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE COAL CUTTING MACHINE INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Supple-
mental Code for the Coal Cutting Machine Subdivision of the
Machinery and Allied Products Industry, and together with the
Code of Fair Competition for the Machinery and Allied Products
Industry, shall be the standard of fair competition for this Subdi-
vision, and shall be binding on every employer therein.
"Applicant" means the Coal Cutting Machine Manufacturers'
Association, a trade organization, all members of which are engaged
in the manufacture for sale of the products of the Coal Cutting
Machine Subdivision of the Machinery and Allied Products Industry.
Industry means the Machinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the
President, and as such definition may from time to time be amended.
"Subdivision means this Coal Cutting Machine Subdivision of
the Machinery and Allied Products Industry as defined and set forth
in Definition No. 49, Article II of the Code of Fair Competition for
the Machinery and Allied Products Industry, as follows:
(49) "Coal Cutting Machine Subdivision means the manufactur-
ing and/or assembling for sale and selling by the manufacturer
and,'or assembler, of coal cutting machines most commonly used
underground in coal mines, but which may be used in the production
of other minerals such as rock salt, potash, and gypsum. Included
in the manufacturing and/or assembling for sale and selling of coal
cutting machines are spare, repair and replacement parts thereof and
supplies and/or equipment incident thereto when manufactured
and.. or sold by a manufacturer of such coal cutting machines."
Code means the Code of Fair Competition for the Machinery
and Allied Products Industry as approved by the President, March
17, 1934, and as from time to time amended.
Person means a natural person, a partnership, a corporation, an
association, a trust, a trustee, a trustee in bankruptcy, a receiver, or
Employer means any person engaged in this Subdivision either
on his or its own behalf or as an employer of labor.
"The Act means Title I of the National Industrial Recovery Act.
"The President. means the President of the United States.
"Board" means the National Industrial Recovery Board, or its
successor in office.
"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
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
ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE
The following Articles of the Code, viz: Article II, "Defini-
tions ", Article VI, "Administration ", to the extent that they shall
be applicable to this Supplemental Code as such or as it may here-
after be administered as an autonomous Code; Article VIII, Modi-
fications and Termination ", are hereby made a part of this Supple-
mental Code, with the same effect as if they were written into this
(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 Au-
thority, the executive committee of the Applicant shall constitute a
temporary Code Authority.
(c) The temporary Code Authority shall, by written notice sent
by registered mail to all employers whose names have been obtained
after reasonably diligent search, call a meeting of employers to be
held within sixty (60) days after the effective date for the purpose
of adopting procedural rules and regulations for the election, or-
ganization, and operation of the permanent Code Authority and
electing a permanent Code Authority which shall consist of three
(3) members, who shall be representative of employers, provided
however, that no one employer shall be represented by more than one
member. The Board may, in its discretion, appoint one additional
member (without vote and without expense to the Subdivision).
The permanent Code Authority so elected and appointed shall im-
mediately supersede the temporary Code Authority.
(d) Any employer shall be entitled to vote at the election of the
permanent Code Authority and at other meetings of employers and
share in the benefits of the activities of Code Authority and may
participate in any endeavors of Code Authority in the preparation
of any amendments or revisions of, or additions or supplements to,
this Supplemental Code by paying or agreeing to pay, as and when
assessed, his proper pro rata share of the reasonable cost of admin-
istering this Supplemental Code as determined by Code Authority.
(e) Action by employers in any Subdivision meeting for the
election of Code Authority shall be by vote of the employers entitled
to vote as provided in Section (d) of this Article V, each such em-
ployer to have one vote only. Action by employers in any Sub-
division meeting for the adoption of procedural rules, or the trans-
action of other business of the Subdivision under this Supplemental
Code, except. revisions or additions to the Supplemental Code, shall
be by vote of the employers in the Subdivision who are entitled to
vote threat 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 pro-
vided 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
(f) In order that the Code Authority shall at all times be truly,
representative of the Subdivision, and in other respects comply with
the provisions of the Act, the Board may prescribe such hearings as
it may deem proper; and thereafter if it shall find 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 of the Code Authority.
(g) If formal complaint is made to Code Authority that provi-
i.ions of this Supplemental Code have been violated by any employer,
Code Authority shall proceed in accordance with the provisions of
Section (h) of Article VI of the Code.
(h) The Code Authority may appoint a Trade Practice Com-
mittee which shall meet with the Trade Practice Committees ap-
pointed under such other Codes as may be related to the Subdivision
for the purpose of formulating fair-trade practices to govern the
relationships between production and distribution employers under
this Supplemental Code and under such others to the extent that
such fair-trade practices may be proposed to the Board as amend-
ments to this Supplemental Code and such other codes.
(i) Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
submit to the National Industrial Recovery Board true copies of its
articles of association, by-laws and regulations.
ARTICLE VI--T"DE PRACTICES
(1) No employer shall secretly, directly or indirectly, offer or
make any payment or allowance of a rebate, refund, commission,
credit, unearned discount, or excess allowance, whether in the form
of money or otherwise, nor shall an employer secretly offer or ex-
tend to any customer any special service or privilege not extended
to all customers of the same class, for the purpose of influencing a
(2) No employer shall publish advertising (whether printed,
radio, display, or of any other nature), which is misleading or in-
accurate in any material particular, nor shall any employer in any
way misrepresent any goods (including but without limitation its
use, trademark, 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 busi-
(3) No employer shall publish or circulate unjustified or unwar-
ranted threats of legal proceedings which tend to have the effect of
harassing competitors or intimidating their customers.
(4) So long as the maker of any product of this Subdivision bear-
ing the maker's name or trade mark, which has required special de-
signing, research, or development expense (or his successor in busi-
ness) continues to make and supply such spare, repair, and replace-
ment parts therefore, no employer shall supply repair parts for such
product of this Subdivision unless (a) the name of the maker of
such copied nongenuine repair parts shall be plainly marked on each
part (or if this is impracticable on the package or tag) so that the
ultimate user is clearly informed by marking on such parts, pack-
ages, tags, and in catalogues, price lists, quoted prices, advertise-
ments or advertising literature of the manufacturer of such copied
nongenuine parts, that said parts were not made by the original
maker of the products of the employer of this Subdivision.
(5) No employer shall furnish to any purchaser, and/or his agent,
directly or indirectly, detailed shop drawings of the products of this
Subdivision without filing a statement of such proposed transaction
with the Code Authority, which may approve or, with the approval
of the Board, disapprove the transaction within ten (10) days by
written notice to the employer.
(6) No employer shall induce or attempt to induce a breach or
abandonment of contract covering the purchase or sale of the prod-
ucts of this Subdivision; provided, however, that. nothing in this
Section shall be construed to prohibit the attempt on the part of the
owner of or licensee under any patent to induce a purchaser or future
purchaser of any product which shall infringe said patent, to avoid
(7) It shall be an unfair trade practice for any employer to engage
in wilfully destructive price cutting for the purpose of injuring a
competitor and where the effect may be substantially to lessen
ARTICLE VII-SALES FOR EXPORT
The provisions of this Supplemental Code concerning pricing and
marketing shall not apply to direct export sales of any product. A
similar exemption may be granted by the Code Authority as to sales
of any product destined ultimately for export. The term Export"
shall include all shipments to all places without the several states
of the United States and the District of Columbia; provided, how-
SStayed-See paragraph 2(1) of order approving this Code.
ever, 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 VIII-MODIFICATIONS AND TERM NATIONS
(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 adopted by
the concurring affirmative vote of employers entitled to cast two-
thirds or more of all the votes that might be cast by all employers
entitled to vote thereon shall be in full force and effect upon ap-
proval by the President. The eligibility requirements method and
effect of such voting shall be as provided by Article V hereof.
(c) This Supplemental Code shall terminate June 16, 1935, or
on such date prior thereto when the Act shall be repealed or the
President shall, by proclamation, or the Congress shall, by joint
resolution, direct that the emergency recognized by section 1 of Title
I of the Act has ended.
Upon thirty days' notice to the Basic Code Authority and to the
Board this Subdivision may, upon the concurring affirmative vote
of employers within the said Subdivision entitled to cast two-thirds
or more of all the votes that might be cast by all employers within
the Subdivision entitled to vote thereon, withdraw from the juris-
diction of the Basic Code Authority. The eligibility of voters and
the method and effect of such voting shall be in accordance with the
provisions of Article V hereof. After and in the event such with-
drawal is accomplished this Supplemental Code, together with the
provisions of the Code shall become and be the sole code governing
this Subdiyision, and the Code Authority shall, for this Subdivision,
become and be the sole Code Authority and shall perform all the
functions with respect thereto.
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 ap-
plied as to oppress or eliminate small enterprises or discriminate
against them, and is designed to effectuate the policy of the Act.
ARTICLE XI--EFFECTIVE DATE
This Supplemental Code shall become effective and binding on
all persons engaged in the Subdivision on the eleventh day after
Approved Code No. 347-Supplement No. 46.
Registry No. 1414-15.
UNIVERSITY OF FLORIDA
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