NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
RAILWAY SAFETY APPLIANCE
AS APPROVED ON JANUARY 12, 193Y
UNIV. OF FLh LIB.
1. Executive Order
2. Letter of Transmittal
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Registry No. 1413-01L
Approved Code No. 198
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Approved Code No. 198
CODE OF FAIR COMPETITION
RAILWAY SAFETY APPLIANCE INDUSTIRYr
As Approved on January 12, 193-1
Order Approving Code of Fair Competition for the Railway
Safety Appliance Industr~y
An application having been dulyv made pursuant to and in full
compliance w~ith the provisiions of Title I of the National Industrial
Recoery Act, approved June 16, 19:33, for a1pprova\.l of a Code of
Fair Competition for the Railway Safety Alpplialnce Industry, and
hearings having been duly held thereoni and the annexed report on
said Code, containing findings writh respect thereto, having been
made and directed to the President:
NOWV, THEREFORE, on behalf of the Preside~nt of the United
States, I, Hugch S. Johnson, Adiministrator for Industrial Recovery,
pursuant to authority rested in mne by Executive Orders of the Presi-
dent, inc~ludingS Executive Ordelr No. 0543-A, da~ted Decemb~er 30, 1933,
and otherwise, do hereby incor~porate by reference said annexed re-
port and do findl that saidl CodeC complies in all respects with the
pertinent prov-isions and will promote the policy and purposes of said
Title of saidl Act; a~nd do hereby order that said Code of Fair
Competition be and it is hereby apiproved.
Hucu~ S. JOHNSON,
Admilnristratmlor for' Indusr~iarl Recovery.
D ivisio n Ad mr inlist; ator. o
W rASm-InaCrow, D.C.
January 19,~ 1931.
229003 j---"06--215--- 3-1 (33)
The Whi~te Hozwe.
SIR: This is a report on the C'ode of Fair C'ompetitio~n proposed
for the Railway Safety Appliance Indlustryv and on the hearing
conducted thereonl in W\ashington,i D.C., on October 11. 1933, in
accordafnce w~ith the prov-isions of the National Indlust rial Recovery
R1%SUMA~I OF CODE AS TO VAG;ES AND HOURS
Thie Code pr~ovides that 8 hours shall constitute thle normal number
of workI~ling hou~rs per day\, and 40 hours the normal Ilnumber of work-
ing hours per week. andl th~at employees shall not be permritted to
work in excess of an. ave~rag~e of 40 ho~ur~s per w~eek in anly 4 months'
period, the first of which periodrs shall begin con thle effective date
of the Codle. These pr~ovisions are applicable to all1 employees except
traveling salesme~n, outside service mnen, w~atchmien. who may be per-
mitted to work 56 hours per week, and persolns employedl in mana-
gerial. executive, or technical work recei\nn not les~s than $35.00 per
The minimum ra;tes of pay prov\idedl for pr~oductionl labor are 40
cents per hour for men and 33 cents per hour for womlen, and
where w-omen~ replace mlenl such women shall1 r~eceive the same rates
of pay as received by the men so replaced. Timef andt one half shall
be paid production employees for each hour! w-orked~ in excess of 8
hours per day or 4l0 hours per wetek.
All others emp~loyees are to be paid not less thanl $15.0`0 pler week,
except that a limited~ :runumer of I~learers andt office boy~s or girls
may be paid not le s than 80 perrIcent of the abov-e minimla.
Equitable adjus~tments4 are to be marde of all wng~e rates above
Child labor is pr(,hib~itedl andc no IIT81 pelrso ler 18 ear~s of Rge
shall be em~ployed inl hazalrdlous occupations.
The: R~ailw-ay Safety App~lianl~e Manullrfac~tui 1rin Im111.lustr iS a capi-
tal g~oodls industry. It comprises the design. development, manu-
facture, sale., and installation of power~~ branke, signal andl train-
control systtem-, and parts. Its p~ro~ducts are dlesigned for the safe-
gu~nringrl of movements of cars, locomnotive~s. or trains. Its sin gle
endownerl~l, theretfore. is the Rtailwayvs, which~ customarily plaee orders
on their ow~n initiative as the needrt for equiipmenrrt arises, rather than
upon colic~itartion by membe~tr of the Industry.
The investment inl thle Ind~ustry. is ap~r~oximately $113,000,000,
and the number of wage earner~s in norma~n times abloult 1`1,000 per-
sons, with an estimated annual pay roll of $20,000,000.
In 1928, which is considered. a normal year, operation was at the
rate of approximately 54 p~er~cent of capacity, with a value of pro-
duction of about $45,000,000. Operantion in 1929 was about 68 pe;r-
cent of capacity; in '1930)-57 percent; in 1931--30 percent; and i
1932--20 percent. The estimate for 1933 is about 11 percent of
Orders for repair and ma~intenanlce of parts whlich, in. a normal.
year, amount to a~pprloxima;telyI 15 p~erent of the total volume
of production, inl 1933 hlave retpr~esenlted about 95 percent of the
volume of production. Newr inistallation buslinessc is nolticipated
in 19341 which w~ill add mensurnlyn,! both to the number of employees
and the pay.7 rolls of thle Industry.
I believed that the Code is fairi to Induslltry, to Labor, and to the
Public, and is in acc~or~dance with thec intent and purpolcse of the
National Indust~rial Recovery~ Act.
The Deputy' Admrinis~tlrator, 1 in! his finall report to me on said Code
having found as herein iset fourth and- on the basic; of all the p3ro-
ceedingas inl this matter:
I: find that--
(a) Said Code is well designledl to promote the policies andZ pur-
poses of TCitle I of thre National Industrial Recovery Act, including
r~emnoval of obstructions to the free flow of interstate and foreign
commel~rc~e wRhich tend to tlimlinii h the amount thereof and will pr'o-
vide for the general welfare by promlotin~g the organization of in-
dustry for the purpose of cooperative action among the trade groups,
byT inducing and maintaining united action of labor a~nd management
under adequate goverrunelntal sanctions and superv\ision, by elimninat-
.ing unfair complettitve prnc~tices, by promoting the fullest possible
utilization of the present productive enpacit!y of industcfries, by avoid-
ing undue restriction of plcclrodc~tion (exscep~t as may be tem~poranrily
requir~ed), by incr~easing the consumption of industrial and agricul-
tural products through increasingly~ pr~ch~acing power, by reducling and
reliev\inrg ull~nemlo yment,~lt by improvingr standards of labor, and by
otherwise rehab~ilitaltingr industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classifiedl by me as a major industry.
(c) The Code as approved complies in all resplects wTithl the perti-
nont prIovisionls of said Title of said Act, i nc~l ud-i ng without limitation
Subsection (a) of Section 3, Sulbsection (a) of Section 7, atnd Sub-
section (b) of Section 10 thereof ; and that the applicant group is
an indlustr~ial group truly reree~~sentftativ of the aforetsaid Industry;
and that said group imposes no inlequitable restrictions on admission
to membership th~erein.
(d) The Code is not designedc to and will not pclrm~it monopolies
nor monop~olist~ic practices.
(e) The Code is not designed to and will not eliminate or oppress
'small enterprises and will not operate to discriminate: against them.
(f) Those engagedl in other steps of the economic process have not
been de~pr~ived~ of ther righlt tol be hlea rd prior to approval of said Code.
For these reaso~ns, therecforec, I have approved this Code.
Respee t f allyS,
H UGH S. JoINson,
Adtm ini straCtor.
Jaiuar~y 19, 1934.
RAILWAY SAFETY' APPLIANCE INDUSTRY
To effectuate thle policies of Title I of thle ~Ntioinal Indus~tria~l
Recover Act., thle followring provisions ar1e submittedl as a Code of
Fair Comupetition for thle Railway~ Safety App~lia~nce Inidustry and
upon alpprovanl by thle Prcsident shall be thle standards'~l of fair com-
pet~ition for such Indlustry and shall be b:indlingr upon rex-ry member
ARTICLE II Den~iII x moSS
Whler~ever1 used in the Code or in any schedule apper~taining thereto,
the terms hereina after in this Article defined~ shall, unless the con-
text shall o~therwise clearly indicate, have the respective meanings
hereinafter in this A~rticle .set~ forth. The definition of any such.
terml in the sinrSular shall apply to the use of such term in thle plural
and vice ver:n..
Th~e terms President ", "Act ", and ":Administrator ", as used
herein. shall mean respectively the President of the United States
the National Industrial Recovery Act, and the Adlministrator of
Title I of said Act.
The term "L the Ind~ustry3 means and includes the business of the
design, development, mailnufacturec sale, and installation of power
brake, signal, and train control esystem ,, and atpparaztus, appliances
and parts which ]have for their object the safeguarding of mo~ve-
ment of cars, locomotives, or tranins on railwa-ys op~eranted by steam
elec~tricityr, or other motive p~ower.
The term member of the Industry means and includes but
w~ithoCut limlitaltionl any individual, firm, association, corporation,
trustee, receiver, or other form of enterprises, engaged in thte Inldustry.
The termz the Code means and includes thlis Code and all
schedules annexed hereto as originally approved by the Pr~esident
and all am Ilendmnent s h~ereof and thereof mlade as hner~i naf ter provided.
Except, as otherwise required by anly provision of the Code, the
ter~m "' mlember of the Industry who assenlts to thne Code means any
mnember of the Industry wh7%o assents to the Code as hereinafter
p~ro vided. '-.
The term Code Authority means the Code Authority as from
time to time constituted. whose members shall be chosen as hereinafter
The term employee as used herein inlcludes any and all persons
engaged in the Industry, except a member of the Industry, however
CODE OF FAIR COMPETITION
The termn employer as used herein means anyone by whom
any such emnployee is compensated or employed.
T'he term expir~ation date as ulsed herein mecans June 16, 1935,
or the earliest date prior thereto on which .the President, shall by
proclamation or the CongrLess shall by joint resolution declare that
the emergency recognized by Section 1 of Title I of the National
Industrial Recovery Act has endedl.
SECTION 1. Except as hereinl otherwise pro~videdc eight (8) hours
orf labor shall constitute: the normal number of w~or~king hours per
day and forty (40) hours of labor the normal numlber of working
hours per week1 for all emlployees, and no employee shall be permit.tedl
t~o work in excess of an a-erage of for~ty (40) hours per week in
any four (4) months' period, the firet of -which periods~ shall begin
on the effective. date of the Code.
SEC. E. NO emnploy~er shall kcnowingly p~ermit any! emplol,~yee to
work for any time which when totaled with thant already! perrforme~d
with another employer or emlployers in the TIndus1try exceed~cs the
maximum permitted herein.
SEc. 3. Th~le prov~ihions of this Article shall not apply. to tr~avelling
salesmen or to outside service m~en, persons empyloy'edl 1 In mnagierial
executive, or techtnie~nI w\orkl, or to me~mbers of their respecctive staffs
whose rate of pay is not less than thirty-five (35) donllars per wreek;
nor shall they apply to watchmnen, who may be permnittedl to work
fifty-six (56) hours ~per weektl.
SECTION i. 1118 minrllnlm wag1~e that shall be paid by! any! employer
to any employ-ee engaged in t~he processing or inlstallation of the
products of the Industry or in Inborl operations dlilrctly incident
thereto, shall be not less than forty (40) cents per lourl for male
and thirty-five (35) cents per hour fEor female emp~loyees; pr1ovided,
that if males be replaced by femlales, for thne same opclrationls such)
femnales shall rrc-eive the ,same ra~-te of pay as the males r~eceiedl, and.
provided that learners mnay be paid nlot less than eigrhty (80) percent
of the abo\e-statedl minimum ra~tes and that the number of learners
r~eceiving less than such minimum ra~tes shall not ex~~ced five (5)
percent of the total numllber of such employees. Empiloyees engagedl
in the prol e.'sing or installation of the products of the Indulstry andl
in labor operations directly incident thereto shall be pa8id not le~ss
than one and one half (115/2) times their regular hourly rates of payV
for all exc~ess hours w~orked over eight (8) hours per day or fortyr
(40) hours per week.
SEC. 2. The milllmumn wage that shall be paid by\ anyl~ emp~loy-er
to all other employees, except commission salespeopleall be at
the rate of fifteen (15) dollars per week; provided, however, that
office boys and girls and student learners m~ay be paid~ no~t less than
eighty (80) percent of such minimum wage, but the number of
sulch office boys or girls and student learners paid at a rate of less
than fifteen (15) dollars per week: shall not exceedl five (5) percent
of the total number of emlployee~s coveredl by the provisions of this
SEC. 3. The mulnmuml Iates o~f pay alnve e\ established shall apply
irrespective of w~hethier an employee is actually comipensated on a
time rate, piecework, or other basis.
SEc. 4. Equitable adjustmenrt in all pa -ceildules of factoryem
ployees above the mninima shall bep mad~e not later thanfite
(15) days from the effective dlate o~f the Code by any employers
who have not ther~etofore ma de such a dj ustmeniit~.and the first'reports
of wages, required to be filled ulnder the ('ode~l, shalll contain all wage
increases made since June 15th~, 1933.
SEC. c5. A Iperson whose earning capac!11ity is limited because of age
or physical or mental handicap mayn be emliployed at a wage belowv
the minimla established by the Cod1:e if the employer obtains :froml
the State Authority~ designated by thle United States Department of
Labr acerifiateautoriinghis emnployment at such wages and
for sulch hlours as shall be statedl inl the cer~tifkate. Each employer
shall file w~ith the C'ode Authority a list of all such employees so
employed by such empliloye..
SEC. 6. EmllployeStli shall not reclarsify employees contrary to fact
with reference to w.ork p~erformedc, wTith thle intention of defeatino-
the purposes of thie Act.
AR~TI(.LE \T- CENERAL, LAnonH PEar .tisNs
SEC'TION 1. Emloyl~!ers shall noct empltloy! anlyone under the agfe of
sixteen (16) eears. No person undler eighiteenl (18) years of age
shall be emlployedr at op~erastions or occup~ationls which are haizardol~ us
in nature or danigerouls to health.
SEC. 2. As requjlired~ by' Su~b-Sectio1 (a~) of Section 7 of the
National Indlustrial Recoverly Act:
(a) Emp~loyees~ shall havet the r~ighlt tol orga nize~ and bargain col-
leet.ively through Iclrepreentati\e ive of their own choosing, and shall be
free from the initerfer~ence, resctr~aint. or coercion of emnployer~s of
labor, or their agents. in the designiatio~n of such repl~resentative~s or in
self-orga~:nizationl or in o~ther~ concetrttedl nectivities for the purpose
of collective barginiingl or other lutulal aid or protection ;
(b) N'o employees and no one se~eking~ emplloymnent shall be re-
qu~ired as a condition of emlployment to join any company umlon or
ton refrain from joining, orgnamzng, or assisctingr a labor orlganiization
of his own choosingr; and
(c) Employers shall comply with thle mna imumn hours of labor,
minimum rates of pay, and other condlitio~ns of employment, ap-
proved or prescribed by the Presrident.
SEC. 3. All emnployers shall pjost compllete copies of the Codle in
conspicuous places accessible to all employees.
ARTICLE \VI-~DMINISTH.1T.'Z I ONS OF THE~ CODE
SECTION 1. A Code Aulthor'ity is hlereby cons~tituted whnichn shall con-
sist of seven members elected by the members of the Industry w\ho
assent, to the C'ode. The method of selection andl voting shall bet as
determined by the bylawfs of the Codle Auithority of the Industry
subject to thle approval of the Admlninist ratoI.. In addition to memu-
bership as albov\e providled, thle Adminillstratorol mnay appoint a mncm-
ber to the Code A~uthority, or not miore thian three members, such
member or mem~lbers to sit w~ithout. vote and to serve for terms as
fixed byT the Administrtrator Any such representative shall serve
without expense to the Industry! unless by agreement approved by
the Admllini;tratr and, together writh the Admlinistrator, shall be
given notice of and may sit at all miee~ting~s of t~he Clode Authority.
SEC. 2. ]Elach trade or industrial association, directly or indirectly,
participating in the selec~tionl or activities of the Code ALuthority
shall (1) imnpose no ineqluitable r~estr~ictionis on mnembershiip, and (2)
submit to the! Administrator tr~ue copies of its articles of association,
bylaws, regulations, and any amendments whien made thereto, to-
gether with such other-informan~tion as to memcnber~ship, organization,
and activities as may be necessary~. 4 to effectuate the purposes of the
SEC. 3. In on~ler that the 'odle Authlority shall at all times be
truly representative, of th~e Industry~ and in other resp~ects c-omply
with the provisions of the Act, thle Administrator mayg provide such
hearings a~s he may deem prop>er, and thereafter if he shanll find that
the 3Code AuthoritJT is not tr~uly r~epr'esentative or does not, in other
Inspects comply with the provisions of the Act. mayg require an ap-
propriate modification in the mrethlod of selection of the Code
Authority, or any subcode Authlority.
SEc. 4. Memiibers of the Industry~ shanll be enititledl to pariticipante inl
and shiare the benefits of the aIctivities of the Code A~uthority and
to participate in the selection o.f thle m~embersl thereof by asisentingr
to the Code as required by t~he bylars and complyingr with the re-
quirementsllt of the Code and sustainingg their recasonlabl e share of thle
expenses of its adlminlistraition. Siuchl r~easonable share of the ex-
p'enses of adm In i i t ration shal bIIe dletermiined by the Colde Aut hority
on the basnis of proportionate pay! rolls as required~ by the bylawvs.
SEc. 5. A~ny memberC1 of the Indlustry~ who desires to become an as-
sentingr memberc~l to the Code, may? dlo so> by! signing andt dtl\elveing to
the S~crietairy a letter sub~tanltiall v inl the form set forth in Schedule
A anlnexed~ hereto.
SEC. 6. Nothing continued inl the( C'ode shall constitute the members
of the Code Authority pa1rtners fori any~ purpose. Nor shall any~
member of the Code Author~it? be liable ir n any anner to anyone
for any act of any other member, ofic~er, agent. or employee of the
Code Authorit~y. Nor shall any member,, otlicer, agent, or employee
of the Code Aiuthority exerc~ising~ rea7ona~ble diligence in the conduct
of his duties hereunder, be liable to anyone for any action or omnis-
sion to act under the Code. except for: his ow~n wilful misfeasance
Sj~c. 7. The Code Aulthorlit\. shall hlave thle folloringr fulrth~er
powers and du\ties:
()To use its best effor~t.- to inlsure thle excuc~tion of the p~ro-
visions of the Code and provish forr thre complianrce of thle Industry
w\ithl the prove isionsi of the Ac~t.
(b) To adopt bylaws andi rulltles andl regulations for its p~rocedurre
and for the administration andl enfor~cement of the C'ode.
(c) To obtain from members of the Industry such statistical in-
formation and reports as al~re r~equired for the adm~~inistration of t~he
Code, which information and r~eporth shall be submiittedl by the Code
Authority to such admninistr~ative and, or gover~lnment ageneles as the
Administrator may decsig~nate; provi\~ded tha~ nothing in lthe Code
shall relieve any miember of the Industryg of any~ existing obligations
to furnish reports to any gove~rnmllenlt agencyv. NJo individual re-
ports shall be disclosedl to any others. mnember of thle Indcustry or to-
any others par~ty eSCpt~t to such'l g'overnmlllental age~ncies as may be
directed by thie Administrator.
(d) To use such trade associationl and otherr agrnc~ies as it deems
proper for the carry~ing~ out of any of its activ.ities pr~ovided for
herein, provided that nlothing~ herein shall r~elieve the C'ode A~ut~hor-
ity of its duties or resiponsibiliti e~s underl the Code~l andt that such
trade associations and agenlciess shlall at all timies be, Iubject to anld
comply with thle prov\isions~ her~eof.
(e) To secure' fromll mlemberCIs of theC Indul~stry2 an1 equlitalble and
proportionate pa.menit of thle reasnabi~l le exeselr~s o~f maintaining the
Codle Authlority and its activities.
( f To inIIit ia te, cons ider, a ndl n mke recclun en dar nt ions for the
modificationl or amendmntci of thle Coude.
S~EC. Y. III 8881~tlOn to tile 111folrintilon reqluiredl tc, be surbmiitted to
the Cod-e Aulthority as set fourth in th~is Ar~ticle, thetrej shall be fur-
nished~ to G~overnmlentt agenlcies .such statiSticanl ill~lnnforaion as the
Admiinistrator mlay deemi neccessary for the purplose~s recited in
Section 3 (a) orf the Natioinal Indtustrial Recovery~ Act.
SEC. O. Xlly adioni taken by the C'odr Author~ity relative to the
AldmninistrantionI of this C'ode, except wTheret spe~cificall ly mae subject
to the approval" Of thle Admiinist rator, may, in the dlislret ion of the
Coder Auth~ority, be s~ubmittedl to thle Admlinistraitor fori approval,, and
shall in any! ece~i be sulbjec-t to thle disiapprlov~al o.f thle Admlinist~rator.
SI'.1rICan. V7I I-1\loolvI IC.arrox A hD A lIs Dxur eNTs
SEcTION 1. Tile COdle (118d ai ll~ the pfVISI0Sllstere~of alre expressly
made-l subject to theP bright of thle Prest)ident, inl aordafnce with the
provisions~ of subsecctio~n (b) of Sectionl 10 of the National Industrial
Recovery~ Act, fromn timie to tim~e to ecec.tl or miod~ify~ any order,
approval. license, rule, or regullati onl is-ued under Title I of said Act
and specifically, buit without limlitation, to thle r~ight of thle President
t~o cancel or mlodify. his apprioval of thle C'ode ,1 o Ir a conditions
imptosed~ b h imn upon' h is app':'rov'al Ither~o f.
SEC'. 2. The 00(.10e. Xcsctpt as to- tile prov-islols r~equiredl by the Act,
may be mnodified o~n the baslirs of experi'enlce orL chnoge~s in c~ircum-
stances, suich mod~ifientions to be, basedt up~on appllication to the
Administrato-r andr such~ notice andi hearlingF aC he shanll specify, and
to become effective oiln approval o~f thle Pre idelnt.
XRTIc- LE \III- Gerusl:I.\ Pnov1\IIcsms
S~EcTIO~N 1. If any1\ emlll~O!'er ill (110 Inclu~t' (FY 15ce tial lnlployer
in any! other inilustry,. the ,rovisions~ of thle C'cle -Ihall ap~ply to and
affect onlyl that p~art o~f thet business~ andlC proneOllts of suichJ empIloyefr
which are inCluldedl in the: Indu 1~try~.
S~EC. P. NCo provision of the Code shaull be so applied as to permit
mnonolpolies or monopolistic practices, or to eliminate, oppress, or
discriminate against small enterprises.
The term effective date of the Code means 12:01 a.m. on the
third Monday after the Code shall have been approved by the
President pursuant to the National Indusitrial Recovery Act.
Approved Code No. 198.
Registry No. 1413-01.
FEDI;~ O)F EITTPER OFi ASSEN~T TO THE-I CODE
To the Srecrr lot! y f ther Cocde Author-ity of the Code of Farir Complletition for` the
Data~ SmR: 'Thet unde~r-'ignajl.~I 17irin/too b~erome a member who assents to the
Code of Fair Com~p:titionu for the Railway Safety Appliance Industry, a copy
of which is anlnexed~ herleto, markedly Annex A, hereby assents to all of the
provisions of siaidl (odle (hereiunfier preferred\ to as the Code), and effective on
the third luonrlay af'tc' thle date on which. the Code shall have been approved
by the Prlesidentu o~f thle united States~ of America as therein prov~ided, or as
of the date oln whlichl this letter shall have been delivered, if delivery thereof
shall have b~een nunlle subseq~luent to the third 1110aday1 after thte Code shall have
been app-roved byr~ said Prelsident as aforesaid, by the signing and dleliv-ery~ of
this letter, becomelc s a member w~ho assenlts to the Code and agrees to the Byr-Laws
of thle c:odet Au~thority., a colly of wIhich may- be obtained from the Secretary
of thle Codie Authlority.
For all purposes of the code, the address of the undersigned, until it shall
file wFithl the Scretary of the Code Authority written notice of a c~hange of
suchl addr~ss, shalll be as set forth at the foot of this letter.
V'ery\ truly yorurs,
UN~IVERSITY OF FLORIDA
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