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Approved Code No. 347--Supplement No. 12
Registry No. 1399--65A
NATIONAL RECOV ERY ADMIN ISTRATION
SUPPLE ME NTARY
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JUNE 5, 1934
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Approved Code No. 347--Supplement No. 12
SUPPLEIMENVTARY CODE OF FAIR COMPETITION
LOCOMaOTIVE APPLIANCE INDUSTRY
As Approved onm Junec 5, 1934
SUPPLEM~ENTARYZ COIDE OF IliAIR COMPETITION FO(R THE LOCOMOTOIVE
A DIVISION OF T'HE MACHINERY AND ALLIED PRODUCTS INDUSTRY
A~n a7ppiention having~ been duly made purslant, to~ and in full
comlpiance with the provisions of Title I of the Nationdl Industr~ial
Recovery Act, approved June 16, 19)33, for approval of a Supple-
mental Code of Fair Competition2 for the Locomotive Appliance
Subdc'ivisionl of Machineryr and ~Allied P~roducts Industry, and heatr-
ings havi\ing been dulyr held thereon and( the uInnexedl report on saidi
Supplemental Codr'e colntalining findlings with respect. thetret~o, having
been madle and direrctedl to the Pr~esident:
NOW, THEREFORE, on behalf of the Preside~nt of the UTnited
1States, I, Hugh S. Johnson, Adcministrantor for Industrial REecovery
pulrsunnt to authority retstedl in me, by ,Execultive Order~s of the
President, includinrw Execu~tivee Order No. 6543-A dated Decemnber
30, 1933, andt otlherwise; do her~eby incorpolrate y eeenesi
annexedl r~eportl and do find that said Supplemental Code complies~d
in all respects with thle ~er~tinent provisions and will promrlote the
policy andl purlposes of snid~ Title of sanid Act; and do hereby order
that said SupplementaIC~It~l Code of Fair Competit~ion be and it ishereby
HUGH S. JOH-NSON,
Administrat~or for Induis~tria~l Recoccr~y.
Applroval recolnunnded :
A. ]R. GLower,
Dirl s io n. A dm/inist~'rato r.
Amlle 5, 1'934.
65341 *----(~-057-"3-31 (1'
REPORT T`O THEfi PRESIDENT
The W~hite House.
SmR: This is a report on t~he Supplemenltal Code: of Fair Competi-
tion for the Incomotive Appliance Subdivision of the Manchinery and
AQllied Products Industry, Public Henring having been conducted
theronn in WaTsh~ington,~ D.C., April 27, 19341, in accordance with the
provisions of Title I ojf the Nat~ional Industrial Recovery Act.
The Locomotive Alppliance Institute being truly representative of
this Subdivision of the Manchinery and Allie~d Prodructs Indlustry,
has submnittedl a Supplemental Code of Fair Comlpetition to the
Basic Code for the Ma~chinery and Allied Products Indust~ry,
ap'proved by you Marsch 17, 1934. The Locomlotive Alppliance
Industry is a capital goods indlust~ry being; engaged in the manufac-
ture andl/or sales of appliances, d'evices or attachments and replace-
ments theref specially designed andl mrranu-factured for use in the
constrlrutionn or repa~iring of locomo11tives as ulsed for tractive power.
This Subdlivision suffered considerably froml the effects of the
Depression. Tvhe agg~regate annual ales of the Subdivision declined
from $24,855,000 in 1929 to $3,818,0030 in 1933 or eigrhty-four per cent
while the aggr~egatte production capacity remained about the sanme at
approcx imately $24,000O,000) and the aggrega~te invested capital at
Estim~t'ed~ employment of factory ~ollrkers declinedd fromt 1,975i in
1930 to a minimum of 910 in the first quarter of 1933 or Cl3.9%c~, and
increased thereafter to approximately 1,2441 in Novembel~tr 1933 or
36.70% over the first quarter of 19333. Employmennt i~n N\ovemnber 1933
was 37% below- the 19t89 level.
ThirtyT-eight per cent of thne factory workers wer~e working mnore
than forty (40) hours~ per week during a represe~tnative w\ele of
June 1933. Thle average workr-week; declined fromn 50.5 hourrs~ in
1990 to 33.8 hocur~s in June 193:3, and thzen. increasedl to 35.0. in Noveml-
Due to the fact that the Subd~rivisio~n in Novemb~'ter 1933 w\as ope~rat-
img on a 35.9 hour week~l, probably no increase in emlploymlent muay
be expected as a result of the adoption. of a fortY-hIour week'l.
TChe D~eputy Admninistratorr in his finall report to me on said Supple-
mental Code having found as hercin1 set forth and on the basis of all
the pr~oceedlings in this mactter:
I find that:
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the ~Natio~nal I~ndustrial ]Recovery
Act, including removal of obstructions to the free flow of interstate
and foreign commerce which tend to dimninishi t~he amount. thereof
andl will provide for t~he general welfare by promnotingv t~he organiza-
tionl of industry for t~he purpose of cooperative action aniong the
trade groups,1)5 by~ inducin g and mnaintaining united action of labor
and manageiengen under ad-equate governmnental sanctions and super-
vision, by chmmintmg unfair comipettitive practices, by promoting
the fullest possible utilization of the present productive capacity
of industries, by av\oidingr undue restriction of production (c xceptlt
as may' be temlporarily' requir~ed), by increasing the consuimption of
industr~ial and agricultural products thlclirough increa~sing~ pur1c'hasing
power, byr reducing andi relievingE unemployment,, by improving
standards of Inbor, and by3 otherwise r~ehabailitatilgr industry.
(b) Said subdivision normally employs not more than 50I,000(
employees; and is not. classified by mle as a major industry.
(c) The Supplemiental Code as approved complies in all respecis
with the pertinecnt proisio~ns of said Title of said Act, including
without limitation Subsectionl (a) of Section 3, Subsection (a) of
Section 7, and Subsectioin (b) of Section 10 thereof; and that the
applienlnt group> is an indusltr~ial association truly re~pres~en tativ\ e of
the aforesaid Subdivision of the Industry; and that said assoc~iationl
imnposesi no inequitable restrictions on admissionl to memibership
(d) T~he Supp~lemental Code is not dlesignled to and will not pel~lrmit
monopolies or mioniopolistic practices.
(e) The Suppleentantl Code is not decsignedl to and will not elima-
inate or oppress small enterprises alnd will no~t operate to dliscr~imi-
nate agani nst. them.
(f) Those elngaedl in other steps of the economic process hav1\e
not been dleprived of the right to be heard prior to approval of said
For these reas?3ons, therefore, I have approvedc this Supp~lemental
Res pect ful ly,
HUGHcw S. JOHrNSON,
JUN E 5, 19341.
SUPPLEMENT AIRY CODE OF` FAITR COM1SPETITI[ON FOR
TH~E LOCOMOTIVE APPLIANCE: INDUSTRY
Ar DI1TSION OF TnnHE MCHINERY AND ALLIED PRODUCTS INDUSTRY
A~RrlCLE 1 -PURPOSES
'To~e~tiectualte the policy of Title I: of thre National Industrial Re-
covery Ac~t the following provisions are established as a Supple-
miental Co e of Fair Competition for the Locomotive Appliance
Subtlivision of th~e Machinr and Allied Products Industry, and
taken together with the Coeof ]Fair Competition of Machinery
and Alliedl Proucl~rts Industry, to which it is a supplementt, shall be
the standard of fair competition for this Subdiviision, and shall be~
binding on1 e-ach employer therein.
"Appplcant means the Locomot~ive Ap~pliance Institute, a trade
organilzation, all members of w~hich. are engaged in t~he manufac-
ture and/or sale of thle products of thre Locomotive A8ppiance Sub-
division of the MRachiinery and Allied Products Industry, which
or~ganizationl is truly representa~tive of this Subdivision.
"Inldustry "' means the Manchinery and Allied Products Industry*,
as definedl in its Code of F~air Competition as approved by th~e
President and as such definition may from time to time he amended.
"L Subdivision means this Locomotive Applianrce Sub~division of
the Ma~chinery nnd- Allied ]Products IndustryT as defined aind set forthl
in Article II as amecn~edl, of thie Code of F~iair Competition of the
Ma\Ichinery anld Atllied P'roducts Ind~ustry as follows:
"C Lnollomotive Appliance tub~div-ision means the manufacturer
and/or saLle of appliances, devices or alttachmnents and replacement
parts thereof spc~ialnly deisignedr~ and mlanufactured for use in the
conllstru~ction or repairing of locomotives as used for tractive power;
pr~ovidedl, ho~e-er, thtat such appliances, devices, and/or attachments
and repli~eneemn parts thereof when manufactured by builders of th~e
afor~esaid locomotives or wnhen wFith~in the scope of anocthecr code are
n~ot inc~luddct in this code.
Code me~an.- the Code of Fair Comlpettiton of the Ma~chinery
an1d Allied Products Indu~stry, as approved~. by the Presjidecnt anrd as
from time to time amlended.t
("Per~son mean-~ a nlaturd~n person, a, partnership, a corplorat~ion,
an a~ssociation, a trust, a trustee, a. trustees in bankruptcy, a receiverl,
or other entity.;
'" Employe3r means1 any3 person engaged in, this Sulbdivision of the
Industry either in his own behalf or as an emp~loSyer of labor.
"Emp~loyeec meacnls anyonlc ~who is cmnployed m the Subdivision
by any sulch employers.
The Act means Title I of the National Industrial Recovery
"' The President means the President of thle U1nited States.
The Administrator means the Administrator for I~ndustrial
"L Basic Code Authlorit~y means the Code Authority for the M~a-
chinery and Allied Products Industry as constituted in the Cede.
"r Code Aiuthority "' means the Code Authority constituted for this
Subdivisio~n, as provided by t~he Code and by thiss Supplemecntal Code.
ARTICLE ~IT-IXPI-Aovon o EMPLOYMENT PROVISIONS OF CODE
The following Articles of the Code, viz: Article. III, Hours ";
Article IV, "' Wagnes "; and Article V, General Labor Provisions "
ar~e hereby made a part of this Supplemental Code, with t~he same
effect as if they were written into this Sup~plemental Code.
AnrlICLE IV--A DOPTION or OTHER PPOVISIO)NS OF CODE
The following Articles of the Code, viz: Art~icle VI, "Admninistra-
tion ",? to the extent that it shall be applicable to the administration
of this Supplemental Code as such or as it mnay thereafter be admnin-
istered as an autonomnous Code; Article VTIII, Modificationls and
TermintionH ~; A~rtic~le IX, "( Withdrawsal and Art~icle X, "L Mlonop-
olies are hlereby,3 made a part hereof withr the same effect as if they
were written into this Supplemental Code.
(a) Code Aruthority for. this Subdivision is her~eby constituted
to adm1-inist~er, supervise and fac~ilit~ate the enforcement of t~he Code
and of this Supp~lemntant l Code in the mn7nercl and to the extent p~ro-
videdl inl the Code and in. this Supplemental Code. Such Code
Authlor~ity shall consist of :
(1) Tliet Excu~tive Committee of the Locomotive Appliance In-
stitute, consistingr of three members.
('2) One additionall member to be elected in anly fair malnner,
withl the approval of the Administrator, by employers in this Sub-
division) entitled to vote thereabn, as here-inafter provided, who are
not mlemibers of the A~pplicant, if so dcc~lesred by such no~llnml~embs.
(3) The Aidminlistra~tor may in his discretion appoint one addi-
tional member, (wit.hiout vote and without expense to the Suabdivi-
( L) Code AQuthority may adopt rules anld regulations to govePrn
its procelur~e and employ such personnel as it may deemn necessary.
(c) Any em~lployer in this Subdlivision shall be eligible f~or mneux-
ber~ship in the Locomotive Applinnee Institute.
(d) Any employer shall be ent~itledl to vote, subject to the provi-
sions of section (a) of this AL~rticle, at the election of the e~lective
mlember of Code Aut~~jithort and at other meetings of employers and
share in the benefits of the netivitiess of Code Author~ity and mlay
participate in any endeavors of Codle Auithority in the preparation
of any amnendmlents or revisions of or additions or supplements to
this Supplemnental Code by paying or agr~eeing to pay as and w~hen
assessed' his or its; proper pro rata share of the cost of preparing, sub-
mlitting and administering this Suppllemnental Code, as determined
by Code Authority. The cost of preparing, submitting and adminis-
terinlg this Supplemental Code. shall be borne by employers pro rata
inr the propo~t~ions that the amlount. in dollars of the yearly average
net sales of products of the Subdivision ma~de by the respective em-
ployers dluringa the five p~reced ing calendar years bears to the aggre-
gate of the am-ount in dollars of the yearly average net sales of prod-
ucts of the Subdivision made by all employers during such~ five
prcdciimr calendar years.
(e) If formal complaint, is made to Code Authority that provi-
sions of this Supplemental Code hiave been violated by any employer,
the Code Authorit~y may cause such investigation or audit to be made,
to the extent permilttedl by thze Acet, as mlay be dteemled necessaryI.
Ann'ICLE 71-UTNFAIR Pa m'I ?ers
Each of the followin~a acts and practices is dleeme~d to be inimical
to. the best interest: of~ the Subdivision, and of thle public, and each
is, therefore, hereby declared to be and to constitute, an unfair
mlethodl of competition, viz:
1. No employer shall give, permit to be given, or offer to give
-anything of value for thne purpose of influencing or rewardinga the
action of any employee, age~nt, or representative of another inr rela-
tion to the business of the emp~loyer of such emlployee, the principal
of such agcent or the. represeni~~lted party -without thre knowledge of
such employer, principal or party. Commercial boriberyr pr~oviions
shall not~ be construedl to prrohlibit free and g~eneratl distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
2. No employer shall pulblishl advertising (whether printed, radio,
display or of any other natulre), whchj is mnisleadting or mnaccurate
in any manter~ial particular, nor shall any memnber in any way mis-
represent any goods (includlingn but without limitation its use, tradec-
mark, gradelc quality, quantity, origin, size, substance, character, na-
ture, finish, material, c~ontent or preparation) or credit ters, val-
ues, policies, services, or thre nat.uret or form. of the business conducted.
3. It shall be an unfair trade practice in the Subdivision to
engage in destrrct~iv-e price cutting,.
ARTICLE V'II--SALsr FOR ExPRoT
NCJo p~rois\ionn of this Code relating to prices or terms of selling,
ship~pingP or manrketing, shall apply to export trade or sales or ship-
ments: for export trade. Export Trade shall be as defined in the
Export Trande Act adiopted pil i 10, 1918.
~ARTICLE VIII 730DIFIC'aTIONS
(a) As p~rovidedt by~ Sections 10 (b) of the Act, the President mnay
from t~ime to time~ cancel or modify any order, approval, license, rule
or regulation i~ssued under Title I: of the Act.
(b) The provisions of this Supplementanl Code, other than those
required by the Act to be .included therein, m~ay, with the approval
of the President, be fr~om time to time amendedc, revised, added to,
or sup'plemlented. A~ny amendments or revisions of or additions or
supplemnentsi to this Supplemental Code proposed by Code Authority
and adopted at a meeting of emnployers by the concurring afrmnat~ive
vote of employers entitled to cast at least; two-thirds of all the votes
that might be cast at a meeting of employers if all employers then
entitled to vote were present threat, shall be in full force and effect
upon approval by the President.
A~s provided by Article IX of the Code, upon thirty (30) days
notice to Basic Code Authority and to the Administrator, this Sub-
division may, at a meeting of employers, by the concurring affirma-
tive vote of emp~loyer~s entitled to cast at least two-thirds of all the
votes that might be cast at such a meeting if all the employers thien
entitled to vote were present threat, withdraw from the jur~isdiction
of Basic Code Authority. Thereafter, this Supplem~ental Code, to-
gether with the provisions of the Code, except such portions of Arti-
cles I, II, VI and VI'I thereof, as are not pertinent thereto as
determined by the Code Authority and the A~dministrator, shall
become the Code ~governing this Subdivision and the Code Authority
shall for this Subdivision become the sole Code Authority and shall
p~erforml1 all thle functions thereof with respect to such Code.
Applicant imposes and shall impose no inequitable restrictions
on membership therein. The Supplemental Code presented by it is
not designed to promote monopoly and shall not be construed or
applied so as to oppress or eliminate small enterprises or discrimninate
against. them and is designed to effectuate the policy of t~he Act.
ARTICLE XI--EFFECTIVE DAT~E
This Supplemental Code shall become effective and binding on all
employers engaged in the Subdivision on the eleventh day after its
approval by the President.
Approved Code No. 347--Supplement No. 12.
Registry No. 1399-65A.
LilrlVERSITY OF F LORIDA
II III I I II Ill IIIIII U II IIIUIII UUII il
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