Code of fair competition for the road machinery manufacturing industry as approved on October 31, 1933 by President Roosevelt

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Material Information

Title:
Code of fair competition for the road machinery manufacturing industry as approved on October 31, 1933 by President Roosevelt
Portion of title:
Road machinery manufacturing industry
Physical Description:
p. 137-147 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

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

Notes

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. 1329-02."
General Note:
"Approved Code No. 68--Reprint.
General Note:
"Includes amendment no 1".

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942878
oclc - 655269304
System ID:
AA00006712:00001

Full Text






NATIONAL~ RIECOVIERYI ~ADMINIIJST[RAT`ION



COD)~E: O~F FAIRE C OIMIPETITION



ROAD MIACHMIN~E)RY

MANUFACTURING INDUSTRY


For sale by the Superintendent of Documents. Wasshington, D.C. - Price 5 cents


Approved Code N~o. 68-Reprint


Registry No. 1329--02


AS APPROVED ON OCTOBER 31, 1933
BT
PRESIDENT ROOSEVEL~T


WI DO OUR PART


INCLUDES AM1~END)MENT NO. 1


(Ja11su STATES
GOVERNMENT PR~INTING OFFICE
WASHINGTON: 1984






















This publication is for sale b~y the Superintendent of Documents, Government
Printing Office, WVashington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF COMCMEROB

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, Ill.: Suite 1706, 201. North Wells Streelt.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlilch.: 801 First National Bankr Building.
Houston, Texs.: Chamnber of Commerce Building.
Indianni polis, Ind.: Chamzber of Commerce Building.
Jackisonville, Fila.: Chlamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Canlif.: 1163 South Broadwsay.
Louisville, K~y.: 408 Federal Building.
Mlemphis, Tenn.: 2"'0 Feder~al Building.
Minneapolis, Mrinn.: 213 Federal Building.
New Or'lflenu, La.: Room 225-A, Customhouse.
New York;, N.Y.: 734 Customhouse.
N'orfolk-, Va.: 408 Eas~t Plume Street.
Philadlph~lllin, Pa.: 422 Comzmercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 508 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattlet, Wash.: 809 Federal Office Building.














Approved Code No. 68


CODE OF FAIR COMPETITION
F'OR T(E:

ROAD) MACH[INERY MVANUJFACTURTINGIJ I~NDUS1RITRY

As Approved on October 31, 1933
BY

PRESIDENT ROOSEVE1LT






Executive Order

An application having been duly made, pursuant to and in full
compliance wFith the provisions of title I of the National Industrial
Recov~ery7 Act, approved Junce 16i, 1933, for my approval of a Code
of Fair Competition. for the Road M~achinery3 Manufacturing Indus-
try, and hear~ings having been held thereon and the Administrator
having rendered his report containing an analysis of the said code
thereto, and the Admllinlistrator(, having found that the said code of
fair competition complies 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", THEREFORE, I, Frankrlin D. Roosevelt, President of thle
United States, pursuant to the authority vested in me byr title I of
the N;ational In~dustrial Recovrery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator and do order that the said code of
fair competition be, and is hereby approved.
FliRANKELIN D. ROOSjEVELT.
Approval recommended :
Huan; S. JoHNson,
Admnl' i~stf'rator.
THE WHITE IfOUSE,
October 31, 1933.


(137)


82a5835*544--131-34














OCTOBER 23, 1933.
The PRESIDENTT.
The -White H~owe.
SmR: This is a1 report of the hearing: on the Code of Fair Competi-
tion for the Road M/achinery Manufacturing Industry in the Unrited
States, conducted in Washington on September 12, 1933, in accordance
with the provisions of the NJational Industrial Recovery Act.
PnovialoNs on HOURS AND WAGES

The maximum hours provided by the Code for factory employees
will be 40 per week and 8 per day. Wrphen production demands it,
this working time may be increased to 44 hours per week: in not more
than 8 weeks in. any 6-months' period, the average hours to be not
more than 40 per week. Time and one half will be paid to employees
working in excess of 8 hours per day or 40 hours per week.
Those employed as preparation, care, and maintenance workers or
as stock or shipping clerks will be given a tolerance of 10 percent
over the maximum hours prescribed, the average to be not more than
40 hours per week in any 6-months' period. The above limitations
in. hours do not apply to supervisory employees receiving more thnan.
$35.00 per week, servcice-parts foremen, field service mzen, nor to
emergency maintenance or repair workers, the last class being paid
time and one half for all hours worked in excess of 8 per day or 40
per week.
The minimum wage for factory workers will be 40 cents per hour.
No distinction in wPage rates will be made between male and female
employees. Adjustments of wage rates above the minimum provided
will be made and will be reported to the Admninistrator.
A maximum of 40 hours per week is provided for employees en1-
ga~ged in accounting, clerical, service, sales, and delivery work. ~Their
minimum wage will be in accordance with the Presidenlt's Rteemaploy-
ment Agl~reement. Salaries now higher than the above minimums
will not b~e reduced because of change in hours provided in the Code.
Office boys and mnessengers will receive not less than 80%0 of th~e
minimum wage and the number of office boys, messengers, and ap-
prentices will be not more than 5 percent of the total number of
employees of any employer.
Carrra LABOR

The minimum age provided is 16 years, but in hazardous occupa-
tions this age limit is raised to 18 years.
.(138)






139


Ecosoxice EFFECT OF THE CODE

This important Industry manufacturess graders, road rollers, and
other machines for constructing or maintaining roads and highways.
Its principal customers are th~e Government of the U.nited States,
th~e individual States and their political subdivisions, and the con-
tr~netors who construct and maintains roads anrd highwr~ays.
There are twenty-one companies in the Industry and approxi-
mately 3,000 employees who are engaged in manufacturing wTork;.
While sales in 1932 ($7,800,000) were only~ 35 percent of those in
1990, employees in 1932 numbered approximately 2,400, or about
65 percent of the number in 1929. Only by increased business, which
will depend largely upon hnigh~way construction activities, canl this
Industry put a large number of employees back to work.
It is estimated byT thne Industr~y that thne hours and wages provided
in the Code will increase employment approximately 20 percent, and
that the average income per employee will be increased approximately
20 percent over that in effect before the President's Reemployment
Agreement.
In arriving at the terms expressed in the Code, it has shown its
cooperation in complying with the spirit of the Act.
]FIIwmIas

TIhe Administrator finds that:
(a.) The Code as recommended complies in all respects with the
pertmnent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof, and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
REoad Machinery IndustryT; and that
(c) Thne Code as recommended is not designed to promote mo-
nopoliies or to elimninate or oppress small enterprises and will not
operate to discriminate against them, and will tend to effectuate the
policy of Title I of the National Industrial Recovery Act.
It Is recommended, ther~efor~e, that this Code be imledliately
adopted.
Respectfullyr,
HUGHCI S. JoRNson,
Administrator.












FOR THE
IRO~AD MACHIN~ERY MlAN UFACTHURINIG: INDUSTRY


ARTICLE I--PU'RPOSE

The purpose of this Code is to reduce ancd relieve unemployment
and to prevent unfair practices and competitionn destructive of the
interests of the public, employees, and employers, and to effectuate
the other purposes of the National Industrial Recovery Act.
ARTICLE II- --EFINITIONS

SECTION 1. ITA8 t870, 770## 3/GChier] 2Manufactzln7g Indus-
try (or'Industryfl;j/ '), as used h~erei~n. shedl meacn the mnux~zfacture
and/or sale of blade graders; mzotor grade1J I.S, g, adler blades (ou~tti~ng
edges); elevating graders; road rollers; bitumzinous distributors;
tractor dlraLonz dump w~agonzs; trackil type tractor equipment,'f eaeludl-
ing agricultural cluipinent, b-ut ;incutllluding bllo.(rs, trail-builders
and scrapers; horse drawn~c~ wheeled scr~apers, dl'crag scrapers anzd f~resno
scrapers; truck scrapers; scar~ife~rs; rooters; anowiplowus; and/or parts
or attachments for any of the products namedi-t herein;1; and such
other machines, and parts or attachments .thzerefor, as the Adminzis-
trator shall fr~om timze to ti~me determinel~t are included within the
scope of this Godle. Track7 type tractors sold for all purposes other
than agricultural are included within and subject to the fair tradr~-e
practice provisions of this Code nwdue applicable thereto."
SEC. 2. The term person as used herein includes, but is not
limited to, any individual, partnership, association, or corporation in
thne Industry.
SEc. 3. The word "Acssociation as used herein refers to the Road
Machinery Manufacturers' Association.
SEC. 4. The term employee as used herein includes any person
engaged in any phase of the Industry irrespective of the method of
payment of his compensation.
SEc. 5. The term employer as used herein includes anyone
for whose benefit such employee is so eng~agedl.
SEc. 6. The term member of thne Industry as used herein shall
mean any person engaged in the Road M'achinery Manufacturing
Industry.
SEc. 7. The term apprentice as nueed herein shall mean a
person, usually a, minor, indentured to serv\e an employer for a
specified term of years in order to learn a trade, art, or profession.
SEC. 8. The term '" member of the Code ": as used hnerein includess
an~y member of the Industry who shall expressly signify assent to
this Code.
(140)


CODE OF FAIRE COMPETITION





141


S~c. 9. The term "Admninis;trator as used herein means the Ad-
mnini tlrator of the National Indtustrialn Reco-very~ Act.
SEC. 10. The telrrm Prer~sident as used~l herelin means thre P~resi-
dlent of the Un~itedl States.
1S1a. 11. TPhe term effective (7ate as -used herein shall meac:n the
third Molndauy afteri this Codetc has1 been approved by the PretSiden~lt.


Percnoxs I1. Membllership in t~he Association shall be open to all
membersitI' of the Incdustry andi no inequ~itab.lee restr~iction.- shall be imc-
pas~l C)I ondmnission to membership.lil'
tRtkc. 2. Membiilers of th~e Indusltry3 shall be enititledl to particip-ate in
andlr share the benefits of the nectivities of the Coordlina~ting~ Agency(1
he-cir llsfter descr.ib~ed and to participate in thle selection olf the~ m~erm-
bu~r thereof by ;I enting~ to and complllying with t~he requirements
of thlis Code and sutal~~ining their reasonable share of the exese~~lc s
of its admniniste~ntion. TIhe reasonable share of the expenses4c of ad-
mlinistration shall be determined by the Coo-rdinainngi~: Agen(cy,, sub-
jetlt to review by the Adm~inistrator, on the bas~1is of volume of busi-
ness and/or -1uch1 other f~intors~ as muay be d~~~leeme equllitchhl l to be taken
into, consoleration.
SECTION 3.;1 mifr8~i' Of th8 Incdustry &hal,n7, ilrh/ fkc: aprocail~
annd w~A/crl~ the d;,Irretiion of the Coordinating AU' I,/!, have~c the pr~ivi-
lege! of fomizng sub-divlsions~ conzsist~inU of members of the Idus~try
whko zan~ufacture andc sell cl'oselyu Ire latedl products, an~d ,cu~ch sub-
divisiolnS may adoptll add~ltional or al7terlrftire tlrrad jrm i He((!.r e, sub7jr rI
to the rc v'(ie r an~d aprovai~ilr of th~e Adm711iistra~tor only,~ to app7ly to

for anni~ill l Idua S in Artficler I~V, Sec2tion 9, eytlreof."rrc' ~e.Ci e
ARTICLE: IV--ADM\IN~VISTRATIO)N
SECTION 1. (a) The members of the Executive Committee of the
Association together with one mem~ber-of the ~ludlustry who is not a
member of the Association, if the non-members so desire, and one
or more representatives who may be appointed by the Preside~nt
(who shall have no vote), are co~nstitutedl a Ccoordinating Agen~icy
for the Industry, which. Coordinating Agency shall cooperate with
th~e Admninistrator in the administration of this Code, withn the
following powers:
(b) To collect from membe~trs of the; Indrustr~y all data and statis-
t~ies requiredf by the President or the Adcministrator or his or their
agent or agents under the provisions of the Nuational Indus~itrial
R~cover~1y Act- also such-l data and sjtatistics~ as mayr be deemedr~l neces-
sary by the Co~orlilnating~ Agency, subject to the approval of the
Admrinistrantor; provided, however, that such information shall be
confillentin1 except insofar as disclosure mary be ner~tc ary for the
ejffc~tive admlrinistratioon of this Code.
(c) I~n addition to information required to be ilhmllittl'd to the
Coolllrinatine~ Agency, there shall be furnished to, Gol~vclernme
_Agencies such Ct a~t i t ic ~;in formation. as the Adm I~i nli -t r;t oInr may eeml
nec.c;issry for the pur11pose rec~itedt in Section 3 (a) of the National
Indlustrial Recovery Acst.
(dl) TIo r~eprscent. the Indusltry? in conferr~ingi with the Presidenrt or
his agents wnith~ respect to the Administration of this Crode and in





142


res~pect of the National inldustr~ial Recovery Act and any regulation
issuled thereunder.
(e) To hear and investigate complaints and attempts to adjust
the same in accordance with law.
(f) To coo~rdinate the administration of this Code with such
Codes, if any, as may be adopted by any subdivision of this Indlustr~y
or any reclatedl Industry, with a view to providing joint and har-
monious action on all matters of common interest; all with the ap-
pr~oval1 of the Administrator.
(g) The Coordinating Agency may from time to time submit to
the Adm~inistrator for apoproval int erilretatirfons of the Provisionrs of
this Code."
SEC. 2. Any proposals for amendments to this Code or supple-
mental agreements with respect to wagaes, hours, or trade p~ractices,
or any other matters shall be first submitted to the Coordinating
Agency which shall consider the same and confer with members
of the Industry affe~ctedt thereby to th~e extent thle Coordinating
Agency deems advisable. The Coordinating Agency, as represenlt-
ing the entire I~ndustry, shall have no power to approve or recoml-
mend any amendments or supplemental agreements, but may arrange
for a hearing; before the President or his agents on any proposal
which a substantial proportion of the Industry, or the division
thereof affected by the proposal, desires to present, and shall notify
all members of the Industry of the time and place of th-e hearing.
ARTICLE VT-HEouRs or LABOR ANUD RATES OF PAY
SECTION 1. ~No member of the Industry shall employ in the In-
dustry any person under the age of 16 years; provided, howevertl,
thlat where a State law provides a higher minimum age no person
belowi the age specified by such State law shall be employed within
the State. No person under the age of 18 years shall be empnyloyed in
any hazardous occupation.
SEc. 2. (a) On and after the effective date of this Code no em-,
ployver shall work any accounting, clerical, service, sales, express,
or udelivrery employees in the Industry more than 40 hours a week
on a semi-yearly average or more than 44 hours in any one wee~tk.
(b) On and after tnhe effective date of this Code all employees
mentioned in Paragraph (a) of this Section shall be paid at a rate
of not less than $15.00 per week in any city of over 500,000 pop~u-
lation; and at a rate of not less than $14.50 per week in any~ cityv
of between 250,000 and 500,000 population; and at a rate of not less
than $14.00 per week in. any city of between 2,500 and 2503,1000
population; and in towns of less than 2,500 population all wages
of such employees shall be increased by not less than 20 percent,
provided that this shall not require wages in excess of $12.00 peir
wiceek. WVhere a State law provides a higher minimum wvage, no
person employed within the State shall be paid a wage below that
required by such State law. The salaries of all, employees r~eceir-
ing more than the m~inimnum herein provided shall be equitalbly
adjusted, if this has not already been done.
(c) No employee of the classes mentioned in Paragra~ph (a) of
this Section, now receiving compensation. at rate in excess of the
minimum provided in Paragraph (b) of this Section, shall have their
compensation reduced on account of any reduction in the week~ly





14 3


hours of employment made to conform with the requirements of
Para raph (a) of this Section.
(dP The provisions of Paragarayph (a) of this iSect~ion do not apply
to perlsons in a managerial, executive, or supervisory capacity receiv-
me ore than $35.00 per weeki nor to outside sallesmenl, collectors,
fnied-service~ men, and repair for~emen.
SEC. 3. (a) On and after the effective date of this Code, no em-
p~loy.ee in the Indu ~st ry, excerpt as here inah~ove or he rei after provided,
shall be em~3ployved in excess of forty (40) hours in anyr one week nor
in excess of eight (8) hours in any one day; provided, however, that
during any period in which a concentrated demand upon any divi-
sion of thie Indlustry shall place an unusualfl and temporary burden
for production upon its facilities, an e~mployvee of such division may
be permitted to work not more than fortyr-four (44) hours per week;
in not more than eight (8) weeks of anly sixr (6) months' period,
provided, however, that the average shall not be more than (40)
hours per week over a six (6j) months' period.
Where in any case an employee is worked in excess of eight (8)
hours in. any one day, or forty (40) hours in, any one week, tim
and one half shall be paid for the excess hours so worked.
As to employees engaged in the preparations, care, and mainte-
nance of plant, machinery, and production facilities, and stock and
shipping clerks there shall be a toleranIce of 10%o, provided tha~t such
tolerance shall not result in such employee working in excess of an
averagre of forty (40) hours per week in any six (6) months' period.
The limitations as to hours of labor shall not apply to persons in a
supervisory capacity, receiving more than $35.00 per wetek, service
parts foremen, field service mnen, nor to employees engaged in
emergency maintenance or repair work, provided that employees
enga red in emergency maintenance or repair work shall be paid
time and one half for all hours worked in excess of eight (8) hours
in any one day or forty (40) hours in any one week; nlor to watch-
men, provided, however, that watchmen shall not be permitted to
work more than six; (6) days in any seven (7) day period.
(b) On and after the. effective date of this Code the minimum
wage that shall be paid by employers to any of their employees
other than those covered byr Section 2 of Article V and Section 3 (d)
and (e) of Aicrticle VT, shnall be 40 cents per hour. This paragraph
establishes a guaranteed mninim~um rate of pay regardless of whether
the employee is compensated on the basis of a time rate or a piece-
work performance, or otherwciise, provided, however, that where a
State law provides a higher minimum wage, no person employed
within the State shall be paid a wage below that required by such
State In wT. The salaries ~of all employees receiving more than the
minimum herein provided shall be equitably adjusted.
(c) The wage ^differentials for all operations shall be equitabl
adjursted (unless such readjustment has been made since July 1, 198
an nn aesalte edcesd Ev~ery mebr fth n-
dustry shall report on such readj ustments to the Administrator upon1
his request.
(d) The foregoing provisions relating to rates of wages shall not
apply to apprentices, office boys, or messengers not exceeding 5%
in number of employees of any employer or to persons in a super-





1P4


visory capacity, or to those receiving more than $35.00 per week;
provided, that all existing and future apprentice contracts shall be
submitted to the Coordinating Agency and shall be subject to the
approval of the Administrator.
(e) Offie boys and metssengersI spe~cified in Paragaraph (d) above
shall be paid n~ot less than 80% of the minimum. wage specified in
Section 2 (b) of this Article V.
(f) No distinction in rates shall be made between male and female
employees where the same class of work is performed, rPegardless
of whether compensation is calenl;nted on an hourly, weekly, monthly,
or piece-work basis.
SEc. 4. The maximum hours for employees hereinbefore prescribed
shall mark the total number of hours which may be worked by each
such employee whether he be employed by one or more employers.
SEc. 5. No em~-ployyee shall be cha~sified in any one of the foregoing
exempted classes unless he per~formsn functions idlentical with those
performed by employees thus classified on June 16, 1933.
SEC. 6. Population shall be governed by the United Staltes Census
of 1930.
ARTICLE VI--SmarISTes

Not later than the 25th day of each month each member of thre
Industry shall report to the C'oordinating Agency the classified unit
sales and the dollar volume sales, at list price, of the preceding
month, of prime products of the Industry (exclusive of parts sales
therefore A composite report of such, statistical information shall
be available to all members of the Industry, but the individual reports
of the members reporting shall not be divulged except insofar as
such disclosure may be necessary for the effective administration of
this Code.
AwiralL TVII-RADE PRACTICES

SECTION 1. (a) It shall be an unfair method of competition for
any member of the Industry to give nyconcessio~ns directlyI or
indirectly, by any means, from, its list "of prices, delivery points,
terms and discounts, so long as the same remain in force, and no
change shall become effective in advance of filing the same with the
Coordinating Agency which shall make such information, available
to the members of the Industry making similar products. ;Within
ten days after the effective date of this Code, each member of the
Industry shall file with the Coordinating Agency a complete list
of its then. existing delivered prices, delivery points, terms and trade
discounts, and shall also file all changes therein as and wsihen made.
Such changes in delivered prices, delivery points, terms and dis-
counts shall be filed at least ten days before becoming effective. The
operation of the fore~going shall be at all times subject to thle
approval of the Administrator.
(b) The longest period for full payment (except by the U~nited
States Government, or by any State, or subdivision thereof) shall
not exceed' tw o (2) ; years from date of delivery, with a minimum
of 6%, interest. N understanding for renewal or extension of any
payment shall be made prior to thie sale of the merchandise to the
purcht~a se r.
Does nort apply1? to sarle rof track-type tractors, see Administrative Order No. 68-5,
approved Apr. L'I, 1934~.





145


SEC. 2. (at) It Shall1 be an unfair method of competition to sell below
cost. Cost shall inlcludte labor, mlaterins, all. reasolnable overhlead~s
and reasonable selling, collection, dist ribut ion, and delivery expenses.
Until January 19)35, or until changed by the Coordlinating AgenICy,)
subject to the approval of the Admninistrator, in determining overcl-
hieads. selling, collection, and dtistributlion exp~ences, the percecntage!
applicable to the yea~r 1926i may be uredl if lower than cul~~rren
(b) Any mlember of the Indulstry whoe w-icThs to sell a product
at less than cost (either generally or in certain terr1itory),;) (a) to
introduce a product new~ to its line, or (b) so that its line shall be
Sufficintllly variedC to adequately comlpette w~Tith other memllber~s of thre
Indlustry, or (c) so that the line of its dwellers shall be sufficiently
complete to adequately compete with other dealers, may do so pro-
vided (1) that it may not sell any p~rodurct for a less pr~ice. or on
more liberal terms than the price and terms, in, thie same territory
of its competitor wcho sells for the lowest price which is not less
than cost; (2) that such member of the Industry first notifies the
Coordinating Agency of thne product an~d territory involved.
(c) D~iscontinlued or noncurrenlt lines may be sold at such prices as
are necessary to movPe this stock into buyers' hands. A list showcPing
~thle quantity of all such stockr and th~e prices at which it will be
offered shall be presented to the Coordinating Agaency at least ten
days1 before it is offered to the public. Non-current lines shall be so
esgnated when offered for sale.

sec~ondi-hand merchandise except that full payment shall be required
within two years from date of delivery to consumer.
SEC. 4. There shall be no rental of current new equipment except
on a lease contract, which, within two years, returns the regular
retail price plus a minimumn of six (6) percent interest. The opera-
tion of this Section. 4 shall at all times be subject to the approval of
the Admlinistrator.
SEC. 5. No second-hand or old equipment shall be taken in trade
as part payment for new equipment at an allowccance in excess of its
then resale value. and the Coordinating Agency, subject to the
approval of the Administrator, shall esta~blish~ from timne to time,
rules and regulations defining such resale values.
SEO~. 6. Nio mecmber of the Industry shall participate in a corn-
petitivpe dlemolnstraltio n in connections with a call for bids by private
industry or by the United States Government or by any State, or sub-
division thereof, nor, incidental to such call, dlemonstralte a machine
of the type required wpithinl the boundaries of such subdivision calling
for bids. TPhis shall not preclude demonstrating the product in. con-
nlection with such sales after taking a bona fide ordter that fully states
purchlase prices and terms but is qualified by being~ subject to Per-
formannce satisfactory to purchaser, before neceptance.
SEc. 7. A very substantial portion of sales to ultimate: consumersl~
are made directly byT members: of the Indlustry and the ba~lancet s are
made through dealers. In conseqyuenlce, restriction of memlnbers of
the Industry to fair trade practices, to bje effctive, must be supple-
mlented by prohibiting indlirect evasionls of such restr~ictio~ns on the
part of members of the Industry by opera';tions through dealers. Ac-





146


cordlingly, it is hereby provided tha-t no member of the Industry shall
sell any product of the Industry through any dealer until such dealer
agrees to comply with the fair trade practices set forth in this Article
VII, except for Section 2 of said Article, in the resale of such
product.
SEC. 8. ~NOthing in this Article VII shall apply to products ex-
ported from the United States.
SEc. 9. Prior to December 31, 1933, no member of the Industry
shall increase the sale price of his product in the Industry sold after
the effective date hereof over the price on July 1, 1933, by more than
is made necessary by actual increases in manufacturing, distribution,
and material costs, or by taxes or other costs resulting from action
taken pursuant to the Agricultural Adjustmnent Act and/or this
Code since Jul~y 1, 1933, and in setting such price increases full
weight shall be given to probable increases in sales volume. In, case
a member of the Industry on July 1, 1933, was selling his product
at less than actual cost, he may take his cost price of that date as
the base for such increase in selling price as is permitted by this
section.
SECTI~ON 10. No member of the Industr~ry shall induce, or alfttemptI
to induce, the breach of an existing contract between a competitor
and his customer; nor shall any such member interfere wlith or
obstruct the performa~nic, of such contractual duties."
SECTION 11. Prime products of the Indlustry shall be invzoic~ed at
unit prices for each prime prodlluct, (.r't'Jnded/ for totals where
necessary."
SECTION 12. Written price quotations, in response to prubic 3in e!-
tations for bids, shall be limited to purchases ma~ide within sixty (60O)
days from date of quotationzs, and contracts cove~rrinlg succh pur~chases~:
shall delifaitely specify alf~rtics, sizes, quantriti'frs, and drlivc~rU/ da~tes.
~The provision of this Section shall not apply to confctrcts in force
on or before the effective date."
ARTICLE VIII

Als required by Section T (a) of the National Industrial Recovery
A8ct, it is hereby provided:
(1) That 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 for aia~,,thr"e~ir agen ts in the designation of such representatives, or
in elforaniaton, or in, other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(2) That 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, orgamizmg, or assisting a labor organiza-
tion. of his own choosing; and
(3) That employers shall comply with. the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
ARTICLE IX

TChis Code and all the provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provisions





14'7


of Subsection (b) of Section 10 of the Na~tional Ind~ustrial Recovery
Act, from time to time to cancel or modify any order, approvcal,
license, rule, or regulation issuedl under Title I of said Act and
specifically, but without limitation, to the right of the President to
cancel or modify his alpprovanl of this Code or any conditions im-
posed by him upon his approval thereof.
ARTICLE: X

Where thne costs of executing contracts entered into in the Indus~try
prior to the date of approval of this Code are increased as a result of
the provisions of this Code or any other Code duly approved under
the! National I~ndustrial Recovery Act, or where any contract entered
into by any members of the Ilndustry prior to the date of approval of
this Code is inconsistent with the provisions of this Code, it is
equitable and promotive of the purposes of the National Industrial
Recovery Act that appropriate adjustments of such contracts be
arrived at by arbitral proceedings or otherwise, and the Coordinating
Agency is hereby constituted an agency with the consent of the
buyer, to assist in effecting such voluntary adjustments. Where the
performance of orders accepted prior to the effective date, of this Code
is delayed as a result of the operation of provisions of this Code, it is
equ itabl e that appropriate additional time should be allowed for the
completion of such orders.
ARTICLE XLI

No provision in this Code shall be! interpreter or applied in such a
manne13r as to---
(1) Promnote monopolies or mnonopolistic practices,
(2) Permit or encourage unfair competition,
(3) 1Eliminate or oppress small enterprises, or
(4) Discrimlinate against small enterprises.
ARTICLE XII

Provisions of this Code other than those required to be included
by the National Industrial Recovery AQct', with the approvPal of the
President, may be modified or eliminated if it appears that the pub-
lic needs are not being served thereby an s chnepanges ina circum
stances or experience may indicate. I scnepae htfo
time to time supplementary provisions to this Code or additional
Codes will be submitted for the approval of the President', further to
effectuate the purposes and policies of Title I of the National Indus-
trial Recovery Act.
ARTICLE XIII:

This Code shall take effect upon the third Monday after its ap-
proval by the President, and shall be binding upon all members of
the Industry.
Approved Code No. 68.
Registry No. 1329/02.




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