Supplementary code of fair competition for the railway car appliances industry (a division of the fabricated metal produ...


Material Information

Supplementary code of fair competition for the railway car appliances industry (a division of the fabricated metal products manufacturing and metal finishing and metal coating industry) as approved on February 9, 1934
Portion of title:
Railway car appliances industry
Physical Description:
8 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Railroad cars -- Equipment and supplies -- 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. 1414-11."
General Note:
"Approved Code No. 84--Supplement No. 5."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004951064
oclc - 656841514
System ID:

Full Text




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

Approved Code No. 84-Supplernent No. 5

Registry No. 1414-11l



A Division of the Fabricated 1Metal Products
Manufacturinga and Metal Finishing "
and 1Metal Coating Industry

1Al P A

This pub'lrlicaion is for sale by the Superintendent of Documecnts. G~overnme~nt
Printing Office, Washlingpton,~ D.C., and by district offices of the Bulreau~ of
Foreign and Domestic Commerce.
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Approved Code No. 84--Supplement No. 5



As Approved on February 9, 1934



An appnicaRt~ion hav-ing been duly mlade pursuant tO and in full
comllplince. with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section 1 of Ar~ticle. VI of the Basic Code for the ]Fabri-
cate~d Metal Products h/Manufa~cturing and Metal Fliinishing and
Metal Coating Industry, approved November 2, 1933, for approval of
a supplementary Code of Fair Competition for the Railway Car
App~liances Industry; and hearings having been duly held thereon;
and fthe annexed report on said Supplementary Code, containing
findings with respect thereto, having been made and directed to the
President :
NOW, THEREF'ORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Adminlistrator for Industrial Recov-ery,
pursuant to authority r-ested in me~ by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby- incorporate by reference said annexed
report and do find th~at said Supplementary Code complies in all
respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that said
SuppIlementary Code of F~air Competition be and it is hereby approved.
Adm27ini tratf/Clor for Industrial Recovery.
Approval recomimended.
Division Administrator.
Fiebru~ary 9, 1984.


The Wh7ite HT~ouse.
SmR: This is a report on the S~upplemnentaryr Code of F'air Compe tuition
for the Railway Car Appliances IndustryT, a division of the F'abricated
Metal Products M 2a nufc tu1ri ng a nd Metal Fi nishinIg and Metal Con t.-
ing I[ndustry, the hearing having been conducted thereon in. Wash-
ington, D.C., Janurytl5 8, 1934, in necordance with the provisions of
Title I of the National Industrial Recovery Act.
TPhe ]Railwa~y Car Appliances IndustryT, being truly representative
of -this division of the Fubhrica tedl MWetal Prducts Mannufacturing~ and
Metal Fiinishing and Metal Coating Industry, has elected to avail
itself of the option of submitting a Supplemnentary Code of fair practice
as provided for in Section 1 of Article VI of the Basic Code, for t~he
Fabricated Metal Products Ma~nulfacturing ~and Metal Fiinishing and
Metal Coating Industry approved by- y-ou on the second dany of
November 1933.
Article I states the purpose of the Supplementary Code.
Article II accurately defilines specific terms employed in the Sulpple-
mien t ary Code.
Article III. TPhis Industry is a division of the Fabricated M\etal
Products Mabnufacturing and Metal Finishing and Metal Coating
Industry and the labor provisions of its Basic Code, as approvedl
November 2, 1933, are the labor provisions of this Supplementary
Code .
Article IV establishes a Supplemenl~tary Code Authority conrsist~inga
of five (5) memberhc ls who shall be elected by the members o~f the Indus-
try at a meeting called by the Temporary Supplementarly Code Au-
thority, and gives the Administrator the authority to appoint one
additional member wvithlout vote and provides machineryT for obtaining
statistics and the administration of this Code.
Article V sets forth, the fair trade practices of this Supplemrentary
Code which has been especially designed to effect fair competition mn
this division of the Industry.
Article VI coc-ntains the mandatory provisions contained in Sect~ion
10 (b) of the Act.
Article VII provides against monoplies and monopolistic practices,
and recognizes that price increases be limited to actu~al additional
increases in the sellerI's costs.
Article VIII provides for the submission of amendments t~o the
Supplementary Code.
Article IX states the effe.-ti\-e date of this Supplementary Code.

The Assistalnt Deputy Admninist~rator in hnis final report to me on
said Supplementary Code having found as herein set forth and on thze
basis of all the proceedings in this mnatter--
I find that:
(a) Said Sup~plemlentar~y Code is well designed to promote the
policies and purposes of Title I of the National Industrial~tecovery
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 organization of
indus try for the purposes of cooperative action among the trade groups,
by inducing and maintainingr united action of labor and management
underI adequate governmental sanctions and supervision, by eli~minat-
ing unfair competitive practice, by promoting the fullest possible!
utilization of the presen t productive capacity of industries, by a-void-
ing undue r~estric~t~ion of produlct~ion (except as may be temporarily re-
quired), by increasing the consumption of indul~striall and agricultural
products through increasing purchasing power, by rednucinlg and re-
lieving unemnploy3ment, by improving stan~dards~ of labor, and by other-
w-ise, rehabilitating industry.
(b) Said IndulstryS normally employs not more than 50,000 empltoy-
ees; and is not classified by m~e as a maj or i nduIs t ry3.
(c) The Supplementary Code as approved comlplies in. all respects
with the pertinent, provisions of said Title of said Act, including
without limitationl Subsection (a) of Section 3, Subsectionz (a) of
Section. 7, anld Subsectionr (b) of Scctionl 10 thereoc- f; and that the
apphicant assoc iat olo is an industrial association truly recpr~esentat ive
of the aforelsaid Industry; and that said a~ssociationl imnposes no in-
equitable rest r~ic tions on admission to membership therein1.
(d) The Suppllement~ary Code is not designed to and will not
pe rmit monopohies or monopohistic: practices.
(e) he upplmenaryCode is not designed to anzd will not
(eliinte or oppress smal enterprises and will not op~eralte to dis-
crilnunate agemnst them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heardc prior to atpprov-al of said
Su ppi l emen tary Code.
F'or these reasons, therefoore, I have approved this Supplementary
Code .
R espe( t fully,
]HUGH S. JaINuson~, A-dmniiRStrafor.
FEBRUiARY 9, 1934.


Teo effeActuat the policies of Title I of the National Industrial
Recoery ctthe ollwing provisions are established as a Supple-
mentary Code of Fair Competition for the RlailwayS Car Appliances
Industry. Pursuant to Alrticle VI of the Basic Code: of Fair Competi-
tion for the F'abricated IMetal P~roducts Mannufactur~ing and Mfetal
Finishing and Metal Conting Indulstry, approved by the President of
the Unitedl States on the s~econdt day of N\ovemnber 1933, the pron-
sions of this Supplementary Code shall be the standard of fair compe-
tition for and in phnre of the Basic Code and shall be binding upon
every member therelcof.

The? term "Railwa~y Car Appliance~s Industry'", as used herein,
means the nutnullfacrt Ilring, assembling, anld marketing of art~icles
comnposed~c principally of ferrous metal s-pecially designed for use in the
ccons~tructio- n or repair of railway cars, except by car builders and
except cos~t mgs, wheels, springns, draft gears, steel tires, brake beamns,
and ar~tidcls covered under the C'ode of thde Railway~S Safety Apphaunce
The terml '"mlemlber of the Industry" as used her~ein includes but
without limlitaition anyiv indiv-iduatlpartnership, association, corpora-
tion or o~therl form of enterprise, engagfed in the Industry eithler as an
employer or on his or its own behalf.
The terms "President"', "Act"', and "'Administrator"' as used
herein shall mean respectively the President of the United States,
Title I of the National Industrial Recove-ry Act, and the Aldministrator
for Industrial Recove\~ry.
The term "Basic Code as used herein, is defined to mlean the
Basic Codle of Fiair Competition for the Fabricalted Mieta~l Prod~uct~s
Mann IIfoctIrturingI rand Mretatl F~inishing and Metal Contingr Inrdustry, as
azpprov~ed by th~e President on the second day of November 1933.
TIhe term "Lemployee as used herein includes anyone engaged mn
the Industry in any enpoit receiving compensation for his services,
irepti~ve of tlhe nature or mcthlod of payment of such comnpensation.
The tiermr "emr~plo~rer as used~ herein includes anyone by whom atny
such employee is compensated or employed.
The term "Association", as used hlerein, is definedl to mean thle
Rtailwaty Car App>lli;nersc ,\sociation or its successor.
T~he term "Supp~lenw~ntaryv Code Authority" as used herein is
defined~ to mea~n the agencll(y which is to atdmlinister this Supplementary
Code a~s hereinafter providedt.

The term "]Federat~ion as used hlerein is defined to mean the
Fabr~icated Mietal Products Fedleration~ or its successor.

This Industryv is a div-ision of' the Farhr~icated Metal Prodlct~s
Manufacturing an~d Metal Finis~hing and Metal Coating Industry
and t~he wage, hlour and labor provisions in Article III of its basic
code as approved by the Pre~sident November 2, 1933, including
Section I of said Ar~ticle III by whlich the pr~ov~isions of Surbsecltions
(1), (2) and (3) of Section 7 (at) of Title I of the Act are malde. conditions
of this Code, are specifically incorporated here~cin and made a part
hereof as the wage, hour and labor provisions of this Supplementary
SECTION 1. During the period not to exceed 60 days following the
effecti\-e datec, the Supplemenatary Code Clommittee of the Associa-
tion shall constituted a, Temporary Sllpplemezntar~y Code Authority
until t~he Supplemnentary Codel~ Aulthorit~y is elected.
There shall be constitutedl within the 60-day period a Supple-
ment.ary Code Authority consistinlg of 5 members, to be elected~ by
the members of the Industry, at a meetings called by the Temporary
SupplementIltary Code Authority, upon 10 days' notice sent b~y regis-
tered mail to all know nmem~bers of thle Industry who may vote either
in person or by proxy. The members of the Supplementar~y Code
Authority first~ elected! shall se\rv until. the follow-~ing annual meeting
of the Association, and thereafter members of the Supplementary
Code Au.thority shall be elec~tetd at each annual mret~ing of the
Associn.t~ion to serve until the following annual meeting.
Thle members of the Supplemen~nt ary Code A2uthcri ty shall be elected
in the following manner:
(a) One member who shall be a miembler of the Ind ust ry by a major-
ity v-ote of all known Inmember of the Industry present in person or by
proxy, ~ac~h member to havea one vote.
Ib) One m~emlber whoe is not a I7member of the Aisso~iat~ion byr a major-
it.y vot e of all known membel~, rs of the Industry, prescntl in person or by
proxy, each mlembler to have one vote.
(c) Thr1ee members by a fifty-one percent vote of membersl~ of thre
Assoc~iation, present in person or by proxy, on the basis of one vote
for each member of the Association and one adlditional vote for eachz
One Hulndreld Thousanrd Dollars of net sales in the Industry made by
sulch membiner during the calendar year ended on, the December 31st
next preceding, provided, however, that no one member mnay cast
more thaun thirty-threer and one-third percent of the total number of
v-otes east.
A vancancy in the mem'llbership) of the Supplementary Code Authority
may) be filledl bye majority vote of the remasining members of the
S~upplnemetntry Code Authority.
]Providedl, howeve~r, that no member of the Industry wiho is delin-
quent in t~he payment of his share of the expenses of the Administ.ral-
tion of this Suppllementary Code shall have th~e right to vote.
In addition to the m'embllership as above providedl, the Administra-
tor mayv appoint one member w\ithou t vote and without expense to the

Industry unless the Supplemlent~ary C'ode Aulthority agrees to bear
such expense, to serve with the Supplement~ary Code Authority in its
administration of this Supplemnentary Code. Such member, when
appointed, shall be given r~easonable notice of each meeting of the
Suppl em~en tary Coie AIu thor~i ty.
SEc. 2. WTith a view to keeping t~he Admiinistrator informed as t~o
the observance or nonoblservanlcce of this Supplemlentary Code, and as
to wvheth-er the Industry is taking proper steps to effectuate, in all
respects, the declaredl policy of the National Industrial Recovery
Act, each member of the Indiustry shanll furnish to the A2ssociation for
trannsm~ission in composite form to the Fabricatedi Metal Products
F'ed'eration on forms prescribed by it duly certified reports covering
employment annd production statistics. The statistics covered by
this section shall conform~ withl those whlich~ may be required by the
SEc. 3.--The Association is hereby constituted the agency to collect
and receive such, reports.
SwC. 4. Neither the Associaltion nor the Fabricated M~etal Products
Federat~ion nlor its successors shall disclose any individual report, but
may make and distr~ibu~te comlposites and averages.
SEC. 5. To further effectulte e the policies of the AIct, th~e Supple-
menta~ry Code Authlority shall admliniste this Supplementaryv Code
and shall h~old itself in r~eadciness to, assist and~ kceep the Administrator
fully advised and to meet with the Administrattor's represent t o t.ive from
time to time as requested; to consider and study anyT suggestions or
proposals presented upon behalf of the Administracto r or any member
of the Industry regarding the operation, observanlce, or admi n n i straotion
of this Supplementary Code.
SIEc. 6. There shall be no inequitable restr~ictions imposed on ad-
mission to membership in the Association and the Aissociation shall
submit to the Administrator true copies of its articles of association,
by~ln w~s, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and alctiv-ities as the Administrator may deem nleessalryT to effectulate
the purposes of the Act.
SEc. 7. Ilf the Administrator, after such hearings and nlotice as
he may deem proper, finds that the Supplementary Code Aut~hority
is not truly representative of the members of the Industry or does
not in other respects comlply with the provisions of the Act there
shanll be a reasonable anzd appropriate modification of the method of
selection. of the Supplementary Code Authority by the members of
of the Industry, which .shall not become effective until approved by
the Aidminist rar. O'
SEC. 8. 11611e formal complaint is made to the Supplementary
Code Authority by any member of the Industry that any of the
provisions of this Supplementary Code have been, violated by any
employer or group of employers, the Supplementary Code Auth~orit~y
may make or cause to be made such investigation as is necessary to
establish the facts pertaining to the comphoint and attempt to adjust
the same and if urnsu~ccetssful shall report the samne to the Adminis-
t ra tor, provided, however, the Supplementary Code Authority~ shall
not knowingly takle any action mn violation of any Inw~ful rules and
regul t ions promuil'gated by the Administrator relating to the
adm~rinist~n tion of this Sulpplemlentaryv Code.

rSEc. 9. Nothing contained in this Supplementary Code shllnl
constituted the members of the Supplementary Code Authority
partners for any purpose; nor sha~ll any member of the Supplemenlntary
Code Aut~horityv be liable in anyJ manner to anyone for any act of
any other member, officer, agent, or emp~loyeec of t~he Supplementary
Code Authority. Nor shall any member of the Supplementary Code
Authorityl\, exercising reasonabler diiligence. in the conduct of his
duties her~eunder,, be liable to anyone for any action or omnissioln to
act under this Supplement~ary Code, except for his wilful mistensanrce
or nonfensance.
SEc. 10. All memlbers of the Industry shanll be entitled to partici-
pat.e in and sharle the benefits of the netivities of the Suppleme~ntary
Code A~ut~hor~ity; shall be, enltitled to vote in the selecr-tion~ of those
members of the Sulpplemnentnry Code Authority described in sub-
patragr~aphs (a) and (b) of Section 1 of this Article IV; and shall pay
their reasonable share of the ex~enlses of the administration of this
Supplemlentiary Code, such reasonable share to be determined by the
Supplementary Code Authority) on the basis of net volume of sales
in the Indulstry dur~ingn the calendar year ended on the December 31st
next ~rececding.r Whnenever a sales comnpanly substantially owns or is
substantially owned by a manulfactul~rin complanly, both the sales
companyl and the manllufneturingn( comnpany shall be regarded as oneo
entity~ for the purposes of thiQ Supplemncit a ry Code.
SEc. I1. If the Administrat-or shall determine that any action of a
code authority or ainy agency t'hereof may$ be unfair or unjust or
contlra7ry to the public inltere~st, thle Administrator maty require that
such action be? suspended to afford an opportunity for investigation
of the merits of such actionl and further consideration by such code
authority or agenrCyIJ pending final nation which shall not be effective
unless th~e Administrator approves or unless he shall fail to disapprove
after thirty days' notice to him of intention to proceed with. such
action in its original or modlified form.
Thle followings acts as descr~ibedl shall constitute! unfair methods of
competition in lieu of the Trade Practice. provisions of the Basic
Code. A~ny memlberI of thbe Industl~ryJ wvho shall directly or indirectly,
t~hroug~h any olfficer, employee, agen t., or r1epresnlta~t ive, use or employ`
any1~ of SUCh; unfair methods of comlpetition sha~ll be guilty of a v~iolal-
tion of this Supplemnentary5 Code.
Ai. The sale of any~ product below. the cost of such product to the
indiv-iduafl member of the Industry. In determining all1 overheads,
selling, collection, distribution, and delivery expense, the percentages
applica~ble to the y'ear 1926j mayj be u~sed~ if lower thtn. current figur~res.
Th~is rule A1 shall not apply to products sold_ for ex-perimentall or test
pur~poses, nlor to samples, nor to products sold, for repair purposes in
small q~uantities. S~elling below- cost to meet. existing competition
shall not. be deemed a violation of this rule A.
B. To imnittate or simulate the trade mrarkr or trade name of a,
comlpetit or's product to such a degree as to deceive or have a te~ndency~
tO clrcelv-e cISOll erlllS.
C. The false marking or brandling of anyT product of the Industry,
which hans the tendecncy to mlislea~d or deceive customers or perspective

customers, whether as to grade, quality, qu~nt~ity, substance, char-
acter, nature, origin, size, finish, or preparation of any product. of t.he
D. The causing or knowingly permitting to be published any inten-
tionally and materially false or incorrect statement by way of adver-
tisement, whether concerming the grade, quality, quant~it.y, substance,
character, nature, origin, size, finish, or preparation of any: product
of the Industry.

SECTION 1. This Supplementary Code and all t~he provisions thereof
atre exrpressly made subject to the right of the P~resident, in accordance
with provisions of subsection (b) of Section 10 of t~he Aet., fr~om time
to time, to cancel or modify any order, approval, license, rule! or r~egu-
lation issued under said Act.
SEc. 2. No person consenting to this Supplem~entary C'ode shall be
held to have consented to any modification her~eof.


SECTION 1. No provision of this Supplemenltolry C'ode shall be
apphied so as to permit monopolies or monopolistic practices, or to
chimmate, oppress, or discriminate against small enltetrprises.
SEc. 2. TChis Supple~mentary Code shall not affect palt~ent r~ights.
SEc. 3. Whereas the policy of the Act to increase real pur~chasing
power will be made more! difficult of consumma1.ion if prices of goods
and serv\irces increase as rapidly as wages, it is r~ecognizedi thatlf price
increasesc~ except such as may be required to meect individua~l costs
should be delayed, but when made, such ilc~rea3ses should, so far as
practicable, be limited to actual additional increaises in the seller's

This Supplementary Code, except as to provisions required by the
Act, may be amended or modified from time to time, such amend-
m~ents and modifications to be based upon. application by thie Sup-
plementary Code Authority- or representative members of the Indus-
try, to the Administrator and such notice anld hearing as he shall
specify and to become effective as part of this Supplementary Code
on approval by the Admrinistrator.
TChis SupplementaryT Code shall continue in effect until June 16,
1935, unless prior thereto Title I of the National Industrial Recovery~
Act ceases to be in effect.

This Supplementary Code shall become effective on 12:01 A.MP.
on the ~first Monday after the fourth day after its approval by the
Approved Code N~o. 84, Supplement No. 5.
Registry No. 1414-11.




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