Registry No. 1149--08
NATIONAL RECOVERY ADMINISTRATION
PROPOSED C ODE OF FAIR C OM PET ITION
MACHINERY AND TOOLS
The Code for the M~achinery and Tools Industry
in its. present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
GOVERNMENT PRINTING OFFICE
WNASHINGTON : 1933
For unle by the Surperintendent of Documents, Washington, D.C. - Price 5 rnent
.WI DO OUR PARTI
AS SUBlulTTED ON AUGUST 31, 1933
AlllERICAN IllACHINERY AND TOOLS INSTITUTEl
PROPOSED CODE OF FAIR COMPETITION\ ]FORC THIE
MACHINERY AND TOOLS INDUSTRY
This Code is set up> for the purpose of increasing employment,
establishing fair and adequa~te wages, effectingr necessary reduction
of hours, imnproving stanndardls of labor, and eliminating unfair trade
practices (et~c.) to the end of r~ehabilitatinlg the machinery and tools
industry and enabling it, to dlo its part toward establishing that
balance of industries which is necessa~ry~ to the restoration. and
maintenance of the highest practical degree of public welfare.
It is the declar~ed purpose of the manch~inery and tools industry
andl adherents to this Code to bring, insofar as m~aly be practicable,
the rates of wages paidt within the machinery and tools industry
to such levels as are necessary\ for the creation and maintenance of
the highest practicable standard of liv-ing; to restore the income of
enterprises within the indlustry t~o levels which will makie possible
the payment of suchi wages andl avoid the further depletionl and
destruction of capital assets; andl fr'om t~ime to time to revise the
rates of wages in suchl manner as will currently reflect the equitable
adjustment to variations in the cost of living.
Participation in this Codle, and any subseqluernt re-vision. of or addi-~~~~n~~~~~~
tiont h oe hl eetne oayproprnrhp
or corporation in the machinery and tools industry who accepts his
share of the cost and responsibility, as well as the benefit, o such
participation by becoming a mlemberr of the A~merican Manchinery
and Tools Insttiitute or any affiliated organization or by signing this
Codle. No initiation or entrance fees shall be charged, but there
shall be dues levied as per the bylaws of the Institute and, or as, at
least two thirds of the signers of this Code elect.
1. The machinery anld tools industry is defined to include the
-design, manufacture, distribution, or operation of machinery and
2. The term "member of the industry "? means and includes any
individual, either as an employer or employee, firm, or corporation
engaged in work related to the design, manufacture, distribution, or
operation of machinery or tools.
3. A machine shop is hereby defined to be a workshop in which
machines are made or metal parts thereof are repaire or where
parts of machines, or tools, implements, gears, dies, screws, or any
other metal articles are cut, filed, shaped, or repaired by mleanss of
a lathe or other miachinery.
4. The effective date as usJed here is defined as the eleventh day
after this C'ode shall have been approedl by the President of the
5. The term employers shall mean all individuals, firms, or
corporationsi wTho emlployr labor in the conduct of any3 branch of
the ma1chinery and~ tools inidustr~y as defined' above.
6. The term11 emplloyee~s ShaR1 llmean1 all pe~SOnS employed in the
conduct of any b-ranch of the machinery and tools industry as
7.The termii 'i exeentive shall mnenn anly person w~ho has super-
visioni of workers in the machinery andi tools industry.
8. The termi designer shall mean any) person who has had the
edluentional trainingll anld pra'1ctical experience to qualify him to be
recognized by employers and his cowo~rkers a~s such.
9. The term tool and diemlaker shall mean any person who
has the practical experience and ability as recognized by employers
andi cowoc~rkers to p~rodluce tools anid diles.
10. The term all round manchinist shall mean any' person who
can make necessaryg mechanical calculations andi set. up and operate
any machine in a machine shop.
11. Th~e terml machine hand' hall mean anyr person who has
sp~ecializedl in the setting~ uip andi op~elrting of any? one or more of
the different machines in a machine sh~op-.
12. The termn semiskilled worker shall mean any person who
can operate p-unch presses, tap:ping maRchines, mlilling machines or
any of the other miach~ines in a machine shop after the machine has
b~eenl set. up' for repetitive production.
13. The termi unskilled worker or common laborer "' shall mean
helpers. trucker, etc.
14. TIhe term~i "L apprenltice "' or leanrner "? is a young person over
16 years of age wTho has contracted w~ith an employer to work for a
definite length of time at. a small compensation in return for instruc-
tion in an art or trad~e.
15. The term draftsman shall mean any? person who has the
educational training andi practical experience to be recognized by
employers and his cow~orkers as such.
Under Section 2 AL of Title 1 of the National Recovery Act to
further effectuate its policies, the Board of Directors of the Ameri-
canl M~achineryr and Tools Institute, the applicants herein, or such
commiittee as' lmay thereafter be constituted by the action of the
Amnerican Miachinery and Tools Institute is set up to cooperate with
the Administrator andi to administer this Codle for th~e machinery
and tools industry. The Board of Directors may from time to time
present. to the Administrator or the President recommendations
based on conditions in th~e industry as they may develop from time
to time which will tend to effectuatie thle operation of the provisions
of this Ciod'e and the policy of the National Industrial Recovery Act.
ARIrrE xce -LBOR
In the formulation of the labor code of the m~achineryr and tools
industry the following general considerations are deemed basic and
1. That it is desirable to raise the general level of wages to that
of the 1926 level, compluted oni thre basis of a weekly wage.
2. That it is desirable that t~he wage levels rise in atdvance of the
rise of the cost of living, whereas the t~renld of wages lags behind
the rising cost of living.
;3. That. the gaeneral wage level required adjustment with the cost
of living indlex, and~ that. it. be adjulst~ed to the region and localityT in
which it is o~perative.
41. That. existing w~age-rat.e differentials esta~blishedl byr custom
within the manchinery andl tools industry and between that industrly
and othersy are niot equitable, and should be adjusted.
5. Inl thle setting up of equitable differentials within the machinery
and tools indurstry., the r'ates should be based on. a scientific evalua-
t~ion of skill, experience, r~isk, physical exer~tion, and responsibility.
6. The wFages inl the mnachinery and tools industry are broadly
classified und-er the dlesignlations, commiion or uinskilled labor, semii-
skilledl andi skilled.
7~. Thlat the Boardl of Dir~ectors of the American Manchiner~y and
Tools Institute be empownered t.o set up equitable differentials within
thle indlustry) and to represent, the industry in thne equalizing of rIat~es
between the machlinery and tools industry andi other industries.
8. The manchineryl and tools industry is opposed to the pr~inciple of
palying labor on contract. (contlract is defined as the payment of a
piece rate without consideration of a minimum wage. The above:
principle is not, inlt~ededl to include thie payment of equitable piece
ra~tes or premniuml and bonus paymn3'ts in excess of the mllinimum
9. Em~ployees inl t.h~e mauchilelry and tools industry shall have the
right. to organize and burgaHin co~llective~ly through representatives
of their own choosing, and sihall be free from the initerfer~ence,
restraintt, or coer~cionl of emlplo-er~ s o~f labor, or their agents, in the
dtesignat ion of 51uch r~epr~eseln tti ves or in self-orga nizat ionis or in
other concerted- activi;ties fo thle pulrposc ? of collectivep bargaining or
other mutual aid o' p~rotetion1.
10). No emlployee inl the malchiner~y andc tools industry, and nro oner
peekiing emnploymlent therein, shall be requllired~ as a condition of em-
ploym~ent, to joini any company union or to r~efromii fromll joililng a,
labor organization of his own choosing.
11. Emnploy~ers of labor in the machinery3 and tools indcustr~y agree
to comply w~ith the mnaximumn hours of Inbor, minimum rates of pany,
and other working conditions approved or prescribed by the Presi-
12. The miaximumn hours for each lass ojf ]labor shall not exceed 40
hours per week with the exception of mainltenane h~elp and emer-
gaency workers who may work 48r hours in one wteek but. his time
shall not, exceed an av\era#ge of 40! hours per week for any period of
13. Mlember~s of t.he machinery and tools industry shall not employ
in or about their pllants or shops any person under 16 years of age.
14. Apprenticesr or lear~ners shiall be p~aid: 1st ~year-150~ per hour;
2nd year-95~j per hour; 3rd year-SO9'~o of the minimum wage, and
shaull be kept. on production work for short periods only in order to
become proficient inl that par~ticular kind of work.
15. The miinimiuml rates of pay per hour shall be as follows for the
Common or unskiilledl labor-__ ____________ $0. 40
Semiskilledl Inbor_--- -------- ----________ ____ .45
lunc~hinle hands___,______________ .60
Dralftsjmel and all round mac~hinists.__________ .75
Tool and~ d~iemakers;--_-_________ .85
Des~irlers----_------_-__--_--- .____- 1. 00
ARTICLE V7I-PRODUCTION AND STAnIswes
It, is the consensus of opinion of the applicants for this code that,
owing to the variedl products mannufactured~ by members of the mia-
chinery and tools industry and owing to the adoption of codes by
manufacturers of specific products and owring to th.e production of
all members of the industry falling under two general classifications,
new work and service work for replacement parts or maintenance, it
is not, necessaryS in order to effectuate t~he policy of Title 1 of the
National Industrial Recovery Act to make specific provision for con-
trolling or regulating the volume of production in the industry other
than that machinery hours shall not be more than 80 in any one
week, except on service work in emnergency cases in which event the
hours wTorked shall be unlimited.
Provisions sh~all be miade for the collection of statistics regarding
Production or sales and other data in order t~o informi the President
or the Admninistrator that the policy of Title 1 of the Act is being
complied with. It is therefore recommended that. adequate records
be kept by the emp~loyer members of the manchineryS and tools indus-
try in order that statistics on the conduct of their business in general
so that periodic reports can be furnished thle Board of Directors and
statistics compiledl which will serve to show that the provisions in
this Code are beino- adhered to.
AnnICLE VJII-ULNFAIR PRACTICES
For all purposes of the Code the following described acts shall'
constitute uinfajr practices:
1. Estimating or selling below cost as defined by a representative
committee of the members of this Code.
2. Alaking or promising t~o any purchaser or prospective purchaser
of any product., or to any officer, employee, agent, or representative
or any such purchaser or prospective purchaser, any bribe, gratuity,
gift, or other payment or remuneration, directly or indirectly.
3. Pr~ocuring, otherwise than with the consent of any member of
the Code, any information concerning the business of such member
which is properly regarded by it as a trade secret or confidential
within its organization, other than information relating to a viola-
tion of any provision of the C~ode.
4. Imitating or simulatingr any design~, style, mnark, or blrand: us~ed
by any other member of the Codie.
5. Cancellingr in whole o-r mn part, or permitting the e~nneellationn
in whole or in paRrt of any~ contract. of sale of any product, except
for a fair consideration, or paying or allowing to any pur~cha~ser in
connection within thle sale of any ?product any rebate, commission?
cr~ed-it, d~isc~ount, ad~julstmnent. o>r similar concession other than as is
permlitted~ by the Codce and- sp~eci~i ed in the contract of sale.
6. Disseminating, publishing, or circulating any false or mislendl-
iginformaution relartive to> any. product or price for any product or
any member of the C'odle or the crledlit standing or ability of any
member thereof to perform any work or manufacture o~r produce any
product, or to the co.ndit~ionls of employment amllong the employees of?
any mnembelr thereof.
7. Making or giving to any pur~chaser of any product any gua~r-
anty or protection in any~ forml against lec~line~ in the marllket pr,1ice
of such pr~oduct~.
8. Stating in the invoice of any products as the date thereof a date
later than the date of the shipment of such p~r~odlut, or including
in any invoice anyL~ prlodu1ct slipped on a date earlier than the date
of such invoice.
9. Render~inga to any pundowe~c2ri of any product in or in connection
with the sale of' such product any reiceli~;, unless fair compensation
for such services shall b~e paid b.y such p~ur~ch~ser.
10. Any\ violation of atny other provision of thne Code, whether or
not t~her~ein expr~essedl to be suc~h. or using or employinga any practice
not hereinabove in thlis List of Unfair Practices described which the
Boardl of Dir~ectolr; by the affirmative vote of three fourths of the
whole Board shall hav\e dleclar~ed to- be a practice, that. would tend to
defeat t~he policy of Title 1 of thle Na'tional Indu~strial Recovery Acit
and, therefore, an unfair practice, and of which determination by
such BoArd the Secr~etary shall have given notice to the members
of the Clodee and to the Pi resident.
11. Lower~ing established piece rates without changing method of
19. Emiplovin"g persons as undlercove r operators to secure informa-
tion regatrdcingr processes, workers, or management either by employers
in their own plant or competitors' plants.
1;3. Advertising for emnployrees without specifien11y statingr in thle
advert~iseme~nt the. terms of- emplloym~entt a.nd th~e Inme of the
14. Thle playing of executives less wages~ thran t~hose under their
1,5. Causing euec~utives to w~ork longer than the r~egulal~r time per~iodl
wit~hoult playing t.hem addritiona7l compensation n t~herefor.
The asbove unfair pra~ctices andc all such other practice wcihich
shall be lec~lared to b~e unfair practices by the Boatrdc' of Directors
as provided in paragra~ph 10. or by any amiendme~nt to the Code
adopted and at th)e time in effect shall be. deemled to be unfair
methods of competition within the meraningr of the Fieder~al Trade
Commission Act as amended, and the uisiner or emiployinga of them
shall be deemed to be a violation of the ~Code, and any~ member
of the Induistry which shall directly or indirectly knowingly use
or employr any of such unfair practices shall be guiltyr of a violation
of thle Code.
Violation by any member of the industry subject to the provisions
of this Codte of any provision of this Ciode, or any subsequent pro-
vision or rule thereto, shall be. subject to the penalties imposed by
the National Industrial Recovery Act.
ARTICLE IX-ESTIMA$TING AND CONDITIONS or ~SALE
In making estimates and terms of sale members of the industry
shall abidle by the following:
1. Quotations submittedl shall not be changed under any condition.
2. Each quotation submitted shall include a fair and reasonable
3. Wherein an estimate covers several units, a separate quotation
for each unit shall be s~ubmitted.
4t. Terms of sale shall b~e F.O.B. shipping point..
5. All quotations shall b~e subject to the approval of the homne
6. Orders placed cannot be: cancelled or deliveries held up except
with seller's consent and upon terms~ which will indemnify him
against all loss.
7. All quotations are based on customer accepting overruns or
unlderruns, not. exceeding 10%~ of quantityr ordered, to be paid for
or allowed pro rate.
8. Every et~ort will be made to fill orders within the time promised,
but und-er no circumstances will the seller assume the responsibility
for any damntages guro-wing out of or owing t~o any delays over which
the seller haRs no control. Unless specifically stated to the contrary,
quotations are made and orders are neceptedj for delivery as fast as
manufactured, by partial shipment.
9. The: seller will submit samples if requested for approval when
commencing operation upon any order, but dloes so with the unider-
standting that his machines are to be run immediately after they are
set correctly to customer's specifications, and he will assume respon-
sibility for having the product in conformity with the original
specifications during the period necessary in which to obtain cus-
tomier's approval. Any change in specificationls can be made only at
customner'.s; direction and expense.
10. The buy~er must. notifyr t~he seller of any claim for defective
material, or material not as ordered, within 10 days from receipt
of shipment. If such claim is sustained and material furnished is
proved defective to satisfaction of both parties, the seller shall have
.the option in such an event of taking back the goods and deciding
whether he shall repair, replace, or credit, but under no circumstances
will he allow or be liable for damages, or any claim for expense in-
volved in using his product. Claims for shortage must be made
within ten days from receipt of the goods, and in every case the
weights found in the shipment must be given, and also the: method
used in arriving at a count of the parts.
11. All dimensions must be limited by a specified tolerance. When
not specified by a customer it is understood that commercial toler-
ances apply and that the work ~will be manufactured in t~he most
12. Gauges are not included in estimated price unless especially
stated. Where tolerances are closer thca~n commercial limits or wh2en.
dimensions cannot be readily gauged with micrometeres, 'customer
will be expected to furnish mnanufact.uring gaurges. Such. gauges can.
be supplied by a seller at an extra charge. The seller does not guar-
antee fits of any kind except where gauges are supplied. In speci-
fying fits to gaug~es, it is advisable to mention whether wrench, finger,
or commercial (free) fit is desired.
13. Q~uotat~ions do not include 100%r inspection unless especially
stipulated. Although it is the intention, to charge for only good
work without a 1~00% inspection, delivery in this way cannot be
guara~nteedl. It is therefore understood that such individual in-
spect.ion w~ill be madle by the customer at his expense anL~d that only-
part~s which have been proved defective by customer's individual
inspection will be returned with a claim for credit or repracement
at seller's option.
14. Charges for special tools to perform" the service, or mnanufac-
ture t~he pr~od~uct., do not convey ownership or the right to remove
them from t~he seller's factory.
15. Seller is not responsible for drawings, samples, models, or
gauges uncalledl for within 30 days after execution of anyT order or
16. In ordeering, the customer should state explicitly the met'hodl
of shipment, preferred and, in the absence of shipping directions,
the seller will use d-iscretion, forwarding by express or parcel post
when pac~kagesx are small and therefore liable to be lost in transit by
freight.. The sEeller asjsumles no responsibility for placing of valua-
t~ions upon s~hipm~ents unlless specifically requested to do so by the
17i. Quiotat~ions covePring the mnaci~ning of buyer's material are suib-
ject to charge if mnatetrial furnishedl will not machine at speed and
feed estimalted. Wh7en the material is furnished by the buyer, the
seller cannot guarantee t~o furlnish more tha~n 90%0 of the amount
of the order and should be allowed a marigin of 10%/ for p~ossib~le
spoilage of mnaterial.
18. Parts are made by the seller strictly to dimensional sp~ecifica-
tions furnished by buye~r. It. is understood that seller is not to be
held accountable for damages from infr~ingrement of letters patent
by th~e use or sale of parts madle by him either as sulch or as parts
or units of complete entities.
Any violation of thle above shall be deemled a violation of this
1. Pursuant to subsection (b) of Section 10 of the ~National Indus-
t~rial Recovery Act, the President may from time to time cancel or
modify any order, approval, license, rule, or regulation issued under
Title 1 of the National Industrial Recovery Act.
2. All amendments shall be proposed by the Board of Directors
of the American 1\1achinery and Tools Institute by a vote of the
majority of the members thereof. Each amendment so proposed
shall be submitted to the members of the Code which shall be called
for such purpose. If at such meeting two thirds of the members
vote in favor of such amendment, such amendment shall be submitted
by the Boar~d of Directors to the President, or Administrator for ap-
proval, if approval thereof shall then be required by law, every such
amendment. shall take effect as a part of the Code upon the adoption
thereof by the members of the Code and the approval of the Presi-
dent if approval thereof by him shall be required.
UNIVERSITY OF FLORIDA
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