Code of fair competition for the farm equipment industry


Material Information

Code of fair competition for the farm equipment industry as approved on October 3, 1933 by President Roosevelt
Portion of title:
Farm equipment industry
Physical Description:
iv, 7 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Farm equipment -- Law and legislation -- United States   ( lcsh )
Agricultural machinery industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1303-1-04."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004936554
oclc - 11900567
lccn - 33026627
System ID:

Full Text


For sale by the Superintendent of Documents. Washington, D.C. . Price 5 cent

(Corrected) ADa pa yed L;L a C

Registry No. 130 -1--04






1. Executive Order
2. Letter of Transmittal



This publiention is for sale by the Superintendent of Documents, Government
Printing Office, WTashiington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.


Atlanta, Ga.: 5041 Post Office Building.
Birminghanm. Ala.: 257i Federal Building.
Boston, M~ass.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 170~l6. 201 North WVells Street.
Cleveland, Ohio: Chramber of Commerce.
Dnflas, Tex.: Chamber of Commerce Building.
Detroit, M~ich.: 2213 First National Bank Building.
Houstoin, Tex.; Chamber of Comimerce Building.
Indianlapolis, Ind.: Chamber of Commerce Building.
Jacksouville, Fla.: Chamber of Commerce Building.
Ka~onsa City, M~o.: 1028 Baltimore Avenue.
Los Angeles. Calif.: 1163 South Broadway.
Louisville. Ky.: Room 40)5, 421 West Manrket Str'eet.
nlemphis. Tenn.: 266 South W~ater Street.
14in neap~olis, Mlinn. : 213 Federal Building.
N'ew Orleans, La.: Room 225-A, Custombouse.
New York, N.Y.: 734 Custombouse.
Norfolk, Va.: 406 East Plume Street.
Philade~lphia, Pa.: Room 812, 20 South Fifteenth Street.
Pittsburgh. Pa.: Chamber of Commerce Building.
Portlanud, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombouse.
Seattle, W'ash.: 1406 Vance Building.




AnI application having been duly made, pursuant to anrd in full
compliance with the provisions of Title I of the National Industrial
Recovery ~Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Farm. Equipment Industry, and hear-
ings having. been held thereon and the Administrator having ren-
dered his report containing an analysis of the said Code of Fair
Competition, together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition, com-plies in all respects with the pertinent
provisions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section 3 of the said Act have been
met :
Now, THIEREFORE, I, Franklin D. Roosevelt, President of the United
'States, pursuant to the authority rested~ in me by Tlitle I of the
National industrial Recovery Act, approved June 16, 1933, and other-
wise, do adopt and approve the report, recommendations, and ~find-
ings of the ACdministrator and do order that the said Code of Fair
Competition be and is hereby approved, except that the second para-
graphl of Article VTIII must be eliminated.
October 3, 1933.

App)~rovl recommended:
Adczm inistrIat or.

1748(f 188-48~-----3

SEPT~EMBER 27, 1933.
The White House.
'17i DEAR BiR. PRESIDENT: I have the honor to submit and recorn-
mendl for your approval the Code of Fair Competition for the
Farmi Equipment Industry.
The following exhibits are included or attached:
(1) Finial Ciode Submitted.
(2) Notice of Hearing.
(3) Statement of Procedure.
(4) Transcript of the Records.
(5) Statistical Analysis of the Division of Economic Research and
() Report of Deputy Administrator.
Ananalysis of t~he provisions of the Code has been made by the
Administration. I find that the Code complies with the reciuire-
mnents of Clauses 1 and 2 Subsection (a) of Section 3 of the National
Recovery Act.
I: am, my dear M~r. President,
Very sincerely yours,
Hnan 8. JonNson,
A administrator.

SECTHON 1. The purpose of this Code is to reduce and relieve un-
employment and to prevent unfair practices of competition in the
Industry destructive of the interests of the public, employees, and
e mpl~oye rs.

SECTION 1. AS used in the Code the term farm equipment in-
cludes tall equipment used inl farm operations except automobiles,
motor trucks, household utilities, barn and barnyard equipment,
poultry equipment, and farm hardware such as hand rakes, shovels,
spades, and 'hoes.
The term industrial includes the manufacture and/or assembly
and/or sale (other than at retail) of any such farm equipment and
repair parts therefore wPhether manufactured by the maker of such
equipment or others.
The term employer means but without limitation any indi-
vidual, partnership, association, or corporation includinga owned or
controlled subsidiaries or affiliates) conducting anly such operation.
Ther term association means Nationlal Association of Farm
Equipment M~anufacturers, anl Illinois corporation.
T~he termn Executive Committee or Committee means the
Extecutive3 Committee (as from time to time constituted) of the
The Code shall become effective on the third Monday after the
Code has been approved by the President and the term effective
date shall refer to such third M~ondayg.

SECTION 1. Membership in the Association shall be open to all emz-
ploy~ers in the Industry and no inequitable restrictions shall be imr-
p~osed on admission, to membership.

SECTION 1. The Executive Commnittee of the Association is hereby
constituted a coordinating agency for the Industry and shall act for
it in the administration Crode with the following powers:
(a) To collect from employers in the Industry all data and statis-
ties required by this Code or byr the President of the United States,
or his agents, under the National Industrial Recovery A-ct.

th(b) To represent the Industry in conferring with the President ofrnso n te fdrlgvrmna
authority with respect to the administration of this Code and in re-
spect of the National Industrial Recovery Act and any regulations
issued thereunder. The Administration may appoint a representa-
tive or representatives to meet with said Committee from time to
time as such representatives may request, and all data and statistics
collected as aforesaid shall be made available to them.
(c) To hear and attempt to adjust complaints arising under the
(d) TIo coordinate the administration of this Code w~ith such
Codes, if any, as may be adopted by any subdivision of this Industry
or any related Industry, with a. view to providing joint and har-
mionious action on all mnat~ters of common interest.
(e) TlCo authorize any person or persons to perform any of the
foregoing duties subject to the supervision of the Committee.

SECTION 1. No employer shall employ in the Industry any person
SnE. 2.The demand for farm implements is subject. to fluctuations 3ar
not prevailing in any other industry. Theree is but one customer for
these implements, the farmer, whose ability to buy is conditioned
upon the price and quality of his crops. The farm demand even in
times of comparative farm prosperity is greatly variedi and often
obliterated by unforseeable weather conditions and pests, such as
ball weevil, blask rust, Hessian fly, grasshopper, corn borer, chinch
bug, and the like. At least 175% of the variations in farm yields is
due to these causes. Likewise, a large emergency demand for other
implements is often created by th same conditions. For example,
the failure of th~e wheat crop ~in the southwest may result in unex-
pected corn planting, for which special implements must be pro-
vided, atlmrost over night. To maeet the farmers' immediate demands
a considerable variation in factory hours has always been essential
and must be permitted.
(a) On and after the effective date no employer shall work any
recounting, clerical, service, sales, express. or delivery employees in
the industry on a schedule of mor~e than 48 hours in any one week or
more than 40 hours a w~eek on a six months' average.
Fior the purpose of adjusting operations to comply with the six
months' average requnirement any employers~ may adopt for each loca-
tion such six-month period as is most appropriate for the business
there conducted.
(b) On and after thre effective date all employees mentioned in
paragraph (a) of this Sectiion shall be paid at a rate of not less
than $15.00) per week in any city of over 500,000 population, or in
the immediate trade area of such city; and at a rate of not less than
$14~.50 per wPeek in any cityv of between 250,000 and 500,000 popu-
Jation, or in the immediate trade area of such city; and at a rate
of not less than $;14.00 per week in any city of between 2,500 and
250,000 population, or in the immediate trade area of such city;
and in towns of less than 2,500 population all wages of such em-

ployees shall be increased by not. less than 20 percent,prvedta
this shall not require wages in excess of $19~.00 per w~eek.-;e ta
(c) No employees of the classes mentioned in paragraph (a) of
this Section shall hav-e their compensation reduced on account of
anly reduction in the weekly hours of employment. made to conform
with the requirements of paragraph (at) of ~this Sect~ion.
(d) The provisions of this Section do not. apply to employees
receiving more than $35.00 per weekr and paragraph (a) hereof
does not apply to outside salesmlen, collectors, field service men and
service-parts foremen.
SEC. 3. FROLoff WOr~kers as used inl this Section shall not include
any employee of the classes mIentioned inl Section 2 (a) of th2is
(a) On and after the effectiv-e date of this Code employers shall
not. operate on a schedule of hours of labor for their factory em-
p'loyees inn the Industry inn excess of 40 hours in any one week.
Asto empnloyee engaged ina the prepa rat ion, care, and maintenance
of plant, machinery, and production facilities, there shall be a toler-
ance of 10%/, and the schedule of hours of labor shall not apply to
suc~h eplnlnoyeesn t~he caseiP of emergent cy work. Any emergency time
mn any plant shall be reported monthly to the .Association. 10%o
tolerance above 40 hours shall also be permitted for other factory
workers where necessary to takre care of seasonal peaks or special
dlemands. In all cases, however, the average over a six months'
period shall be not more than 40 hours per week.
The limiitations as to hours of labor shall not apply to employees
in a supervisory capacity receiving more than $~35.00) a week; or to
field service men.
(b) On and after the effective date of this Code, the minimum
wage that shall be paid by emnptloyers to any of their factory workers
in the Industry shall be at the following rates:
CoentS per hour
Zone A--,,--------------_, 40
Zonle B ------ --- -_____,,__- ,,_,, 35
Zonle C, ------------,--------i-----_------_,,_,_ 30
rZone A is defined as cities of more than one million population,
together with all industrial cities, towns, and villages in thne samre
immediate manufacrturing area. Zone C, the states of Virginia,
North Carolina, Souith Carolina, Georgin, Florida, Alabama, Mis-
sissippi, Tennessee, K'ent ucky, Arkansas, Louisiana, Tiexas, and points
east of the Mississippi River south Louisville, Kentucky; also all
communities elsewhere in the United States of less than fifteen
thousand population in, which a majority of the adult male popula-
tion is not engaged in manufacturing. Zone B, all territory in th~e
United States ex~cep~t Zones Ai and C.
Where females perform the same wFork. and dultie~Cs as men the mini-
mum rate of wages for females shall be the same as for men. WGhere
females and youths perform different and light types of wclork the
minimum wage rate may be fi~cve cents an hour lower than those
specified above.
(c) The hourly rates of pay and th~e base rates for piecework
for all factory workers paid at rates higher than the above, minimnumo
and lower than $30.00 per week, shall not be less than 85% of the rates

paid by the same employer or his predecessor in business for the
same class of work at the same place on July 15, 1929; provided,
that no employer shall be required hereby to pay a higher rate than
other employers for the same class of work in the same immediate
manufacturing area.
All employers who havre not heretofore adjusted wages to conform
withi these provisions shall do so within 15 days after the effective
date of this Code.
SEC. 4. Exceptions to the above minimum rates are learners for a
period up to ten weeks, messengers and office boys who shall receive
not less than. 8070b of the minimum; and employees disabled by old
age or other causes; but the total number of such excepted employees
shall not exceed Sofo of thle total number of employees of any eml-
p~loyer. The provisions, as to rates of wages, shall not apply to ap-
prentices or learners working part time in conjunction with any
public educational system.
SEc. 5. Within each state employers shall comply with all such
state laws imposing more stringent requirements regulating the age
of employees, w-ages, hours of work or health, fire or general working
conditions than under this Code.
SEC. 6. The foregoing provisions in regard to wages of factory
employees establish guaranteed minimum rates of pay regardless of
whv~ether the employee is compensated on. the basis of a time rate or
piecework performance, or otherwise.
SEC. ?. NO employee shall be! classified in an~y one of the excepted
classes hereinabove defined unless he performs functions identical
with those performed by employees thus classified on June 16, 1933.
SEc. 8. The m~aximum hours hereinabove provided mark the total
number of hours during which anly employee may be employed,
whether by one or more employers; provided, however, that if any
employee should work for more than one employer for an aggregate
period in excess of such maaximum~, without the knowledge or con-
mivance of anly one of such employers, such employer shall not be
deemed to have violated this section.
SEC. 9. Population shall be governed by the United States census
of 1930.

SECTION 1. Ill Ridition to information required t~o be submitted to
the Code authorities there shall be furnished to novernment agencies
such statistical information as the Administrator may deem necessary
for the purpose recited in Section 3 (a) of the National Industrial
Recovery Act.
SEC. 2. NOt later than the 28th day of each month each employer
shall report to the secretary of the Association, in terms of per-
cetage, Inuthroportion w~hichI its aggregate sales of products in
theIndstr duIxng the previous month bear to the corresponding
sales of the same month of the previous year, and also the propor-
tion which corresponding sales from the preceding January first to
and including the previous month bear to those for the same period
of the previous year. As part of the same report, the proportions
which collections for th~e previous month and for the current year
from January first to and including the previous month bear to col-

elections for the corresponding periods of the previous year shall also
be reported in sterns of percentage. Such statistics shall be available
to all members of the Association, but the names of the employers
reporting shall not he divulged.

SECTION 1. Within ten days after the effectivPe date of this Code
each employer in the Indtustry shall file with the Associattion a comr-
plete list of its prices (to jobbers and dealers), including delivery
points, finance plans, terms and discounts, and thereafter shall file
all changes therein as aind when made. I~t shall be an unfair method
of competition for any employer to give any concession directly or
indirectly, by any mneanls, from its lists of prices, delivery points,
finance plans, terms, and discounts so filed as long as the same re-
main in force, and no change shall become effective in advance of
filing the same with the Association which shall make such infor-
mation available to employers in thle Industry miaking~ competitive
lines. Stationary grain separators shall not be sold on longer terms
than 28 months from date of delivery to the user thereof* all other
farm equipment shall not be sold or\ longer termas than twBo years
from, date of delivery to the user thereof and no part of a dleferredl
payment shall be extended except for actual inability of the pur-
chaser to make payment; and no undrer~sta ndi ng for r~enewarl or exten-
sionr of any payment shall be made prior to th~e sale of the mer-
chandise to the user..
SEc. 2. The matnufacture and sale of farm equoipment p'roduced
by prison labor displaces a correspondlinga amount of free labor.
Further, the products of such prison labor are customarily sold at
prices below the cost of similar articles produced by private industry
employing :free labor anld subject to taxes and other ordlinary busi-
ness expenses. T~he increased w~ages prescribedl by this Code cannot
be maintained against the competition of such prion-madi Ieprod-
ucts. To protect free labor against such comipetintishrb
declared to be an unfair set of competition and a, violation of thiJs
Code to sell and ship prison-mlade products across state lines at
lower prices than similar goods made by free labor can be sold
under theprovisions of this Codle.
SEO 3.Solong as the :maker of any trade-markedl machine or
implement (or his successor in business) continues to make and
supply repair parts ther~efor, it shall, be an unfair method of com-
petition for any other person to make and supply rIepair part for
such machines or implements unless (a) the name of the maker of
such repair parts is plainly marked on each part (or if this is im-
]practicable onl thne package or tag) and unless (b) said pats are
otherwise marked, packaged, and sold wtithlout imitativeC labels, and
in such a manner as to clearly indiente to the ultimate user that
they are not made by the maker of the ~original machine or
SEC. 4. It Shall be an unfair method of competition to sell belowv
current delivered cost. In determining overheads (production, sell-
ing, collection and distribution), the percentages applicable to the
year 1926 may be used if lower than current figures.

Any employer in the Industry who wishes to sell a product at
less than cost (either generally or in certain territory) (a) to in-
troduce a product new to its lines, or (b) so that its line shall be
sufficiently varied to adequately compete with other employers in
the Industry, or (c) so that the line of its dealers shall be sufficiently
complete to adequately compete with other dealers, may do so pro-
videdl (1) that it may not sell any such product for a less price or
ont more liberal terms than the price and terms in the same territory
of its competitor who sells for the lowest price which is not less
than cost; (2) that such employer in t~he Industry first notifies
the Association of the product and territory involved.
This Section does not apply to obsolete merchandise or to mer-
chandise which is substantially shopworn.
SEC. 5. The preceding provisions of this Article do not apply to
seco~nd-hand merchandise except that full payment shall be required
within two years from date of delivery.
SEC. 6. As trade practices in foreign countries are governed by
foreign laws and as foreign manufacturers are not subject to this
Code, it is understood the provisions of this Article do not apply to
export trade.
SEC. T. No person shall take part in any method of competition
defined as unfair in this Coide.
As required by Section 7 (a) of the Act, the following provisions
are conditions of this Code: "(1_) That employees shall have the
right to organize and bargain collectively through representatives of
their own chloosingr, and shall be free from the interference, restraint,
or coercion of employers of labor or their agents in designation of
such representatives or in self-organization, or in other concerted
activities for the purnpos of collectivec barga.7iningr or other mutual aidt
or protection; (2) that no employee and no one seeking employment
shall be required as a condition to employment to join any company
umion or to refrain from jolming, organizing, or assisting a labor
organization of his owpn choosing; and (3) that employers shall com-
ply with the maximum hours of labor, mmnimum rates of pay, and
other conditions of employment approved or prescribed byv the
WPit~o~ut in, any w~ay aQttempthing to qualify or mlodifyv, by inter-
pretation, the foregoing reqpuilereen~ts of the NYational Industrial
Recov~ery act, em players in this Indutry may exercise their right
to select, retail, or advance employees on the basis of individual
mzerit, wIithlout 4regalrd to their membership or nonmembership in
anLy organization. (See Note on, p. 7.)
This Code is hereby made expressly subject to the right of the
President, pursuant to Section 10 (b) of the National Industrial
Recovery Acfrom time to time to cancel or modify any order
approval, license rule, or regulation issued under Title I of said
Act, and particularly but without limitation, to cancel of modify
his approval of this C~ode or any conditions imposed by him upon
such approval.

No person consenting to this Code shall be held to have consented
to any modification thereof or to any particular interpretation of
the National Industrial ]RecoveryI Act If invalid.
AzerlCLE. X
This Code~ may be amended by appropriate action of the Industry
and approval of the President. This Code and any amendments
thereof shall remain in effect until November 1, 1934, unless sooner
terminated by action or approval of the President. It is contem-
plated fr~om time to time supplementary provisions to this Code or
additional codes will be submitted for thne approval of the 1Presi-
dent to prevent unfair competition in price and other unfair and
destructive competitive pral~ctices, and to effectuate thne other purposes
and policies of Title I of the National Industrial Recovery Act.
Any proposals for amendments to this Code or supplemental
agreements with respect to wages, hours, trade practices, or any
other matter~s,shall be first submitted to the Commrittee, which
shall consider the samle and confer with employers in the Industr~y
a~ffectedl thereby to the extent the Com~mittee deems advisable. The
Committee, as representing the entire Industry, shall have no power
to atpprove or recommend any amnendmencnts or supplemental agree-
ments, but may arrange for a hearing before the 1President or his
parents or other Federal governmental authorities on any 1'proposa
wh~ichI a substantial proportion of the Industry, or the division
thereof affected by the proposal, desires to present, and shall notify
all members of the Association of the time and place of the hearing.
NorE.--This paragraph has beenl eliminated as required by the
Executive Order, for the r~ealions stated by the President in a letter
to the Administrator of October 19, 1933, reading as follows:

General Huran S. JoHNSONu,OCBE 918.
Admiini~strator for Na~tional Recovery,
Wyashingtonz, D.O.
DEAR ~ENERAL JOIHNcSON: FOllowing Our recent cdiscussiion Of Va-
rious misunderstandingsr and misinterpretations of Section 7 (a) of
the Niiational Industrial Recovery Act, I wish to advise you of my
Because it is evident that the insertion of any interpretation of
Section 7 (a) in a Code of Fair Comlpetitio~n leads only to further~
controversy and confusion, no such interprjlentatin should be incor-
porat.ed in any Cod-e. While there is nothing in the provisions of
Section 7 (a) to interfere with the bona fid~e exercise of the r~igh~t
of an emplloyer to select, retain, or advannc~e employees on the basis
of individual merit, Section 7 (a) does c~learly prohibit the pre-
tended exercise of this right by an employer simply as a device for
compelling employees to refrain fr~om exserelsingr the rights of self-
orgaf~nizton, designation of representatives, and collective barguin-
ing, which are guaranteed to all employees in said Section 7 (a).
Very truly yours,

LINIVERSITY111 OF11111 FLORIDA1111111111111