NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
RAILROAD TIE INDUSTRY
AS SUBMITTED ON AUGUST 26, 1933
REGISTRY No. 320-08
The Code for the Railroad Tie 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
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CODE OF FAIR COMPETITION FOR THE RAILROAD TIE
To effectuate the policy of Title 1 of the National Industrial Recov-
ery Act the following provisions are established as a Code of Fair
Competition for the Railroad Tie Industry for the purposes of in-
creasing employment, establishing fair and adequate wages, improv-
ing standards of labor, eliminating unfair trade practices, restoring
individual enterprises within the Industry to a sound financial posi-
tion and avoiding further depletion and destruction of capital assets
so that the Railroad Tie Industry will be rehabilitated and enabled
to do its part toward establishing that balance of industries which is
necessary to the restoration and maintenance of the highest practical
degree of public welfare.
The term "railroad tie industry" as used herein is defined to mean
and cover the production, seasoning, marketing, and distribution of
cross ties, switch ties, and bridge ties used by steam, electric, or other
The term "producer" as used herein includes any individual, firm,
partnership, or corporation engaged in the business of accumulating
ties in concentrating yards for seasoning or otherwise, and/or the dis-
tribution of same, from tiemakers and/or the actual producing of
railroad ties and timber direct from self-owned or controlled timber
The term "tie maker" as used herein is defined to mean any person
(usually a farmer) who produces ties in relatively small quantities
during a portion of each work year because of irregular work periods
caused by climatic or other physical factors of production, most of
whom live in remote parts of the country and have no direct facilities
for marketing their product.
ARTICLE III-ORGANIZATION AND ADMINISTRATION
SECTION 1. Membership in the Railway Tie Association shall be
open to any person, firm, or corporation engaged in the making, pro-
ducing, distributing, or selling of railroad ties, and/or other products
of the industry as hereinbefore defined.
SEC. 2. The officers of the Railway Tie Association shall function
for the enlarged organization, consequent upon the adoption of this
Code, in addition to the offices and officers created by this Code.
SEC. 3. A committee to administer the provisions of this Code,
secure adherence thereto, hear and adjust complaints, consider
proposals for amendments and exceptions thereto, and otherwise
carry out in the tie industry the purposes of the National Industrial
Recovery Act, as set forth in this Code, shall be and is hereby created,
known as the Administrative Committee. It shall consist of seven
members one of whom shall be the President of the Railway Tie Asso-
ciation, who shall be chairman of the Administrative Committee.
Each District Committee representing the districts hereinafter
created, shall choose one representative. The president of the Rail-
way Tie Association shall appoint, subject to the approval of the
Executive Committee of the Association, two members at large.
The Committee shall not transact business with less than five mem-
bers present, the vote of the majority present to govern. Not more
than one member of the Administrative Committee shall be from the
same business organization, affiliates, or subsidiaries.
SEC. 4. Each Regional District shall create and select, by a majority
vote of all members operating in that region, its own Regional Com-
mittee, consisting of not less than three members, which shall be
independent and self-governing, in respect of all conditions and prob-
lems relating exclusively to said District. Not more.than one mem-
ber of each Regional District Committee shall be from the same busi-
ness organization, affiliates, or subsidiaries.
Proposals in respect to all matters affecting one or more regional
districts may be initiated by any such district committee or any pro-
ducer operating therein and submitted to the Administrative Com-
mittee for consideration and decision.
SEC. 5. The Administrative Committee shall be the general plan-
ning and coordinating Agency empowered to act conclusively in res-
spect of all matters before the Committee for consideration and the
committee shall have powers and duties as provided herein and in
addition thereto it shall:
1. Issue and enforce such rules, regulations, and interpretations and
designate such agents and delegate such authority to them as may be
necessary to effectuate the purpose and to enforce the provisions of
2. Require reports from persons subject to the jurisdiction of this
Code on wages, hours of labor, conditions of employment, number of
employees, production, shipments, stock on hand, and other data
necessary for the proper administering of this Code, such information
to be collected thru a disinterested agency and to be treated in a
3. Fix and collect a fee based on production, to be paid by persons
subject to the jurisdiction of this Code to cover the cost of administer-
4. Upon its own initiative, or upon complaint, to make such inquiry
and investigation, recommendation and report to the lawfully con-
stituted authorities, as may be necessary for the successful operation
of this Code.
5. There may be substituted for any regional district member of the
Administrative Committee, who is unable temporarily to attend
personally, one or more meetings of the Committee, a member of a
Regional District Committee designated by the Chairman of such
Regional District Committee, reasonable notice in advance of such
designation to be given to the Secretary of the Administrative Coni'
mittee, such designated member shall also file with the Secretary
SEC. 6. Any interested party shall have the right of appeal to the
Administrator of the National Industrial Recovery Act, under such
rules and regulations as he shall prescribe, in respect of any decision,
rule, regulation, order, or finding made by the Administrative
ARTICLE IV-REGIONAL DISTRICTS
The applicant organization, i.e., The Railway Tie Association, shall,
for the purpose of administration of this Code, set up four regional
districts of the industry as follows:
District No. 1 includes Maine, Vermont, New Hampshire, Massa-
chusetts, Connecticut, Rhode Island, New Jersey, New York, Dela-
ware, Pennsylvania, Indiana, Ohio, Illinois.
District No. 2 includes Maryland, Virginia, West Virginia, North
Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi,
Louisiana, Kentucky, Tennessee.
District No. 3 includes Michigan, Wisconsin, Minnesota, North
Dakota, South Dakota, Montana, Idaho, Wyoming, Nevada, Utah,
Nebraska, Kansas, Iowa.
District No. 4 includes Arkansas, Missouri, Oklahoma, Texas, New
Mexico, Colorado, Arizona.
ARTICLE V-LABOR CODE
SECTION 1. Employees engaged in the production of railroad ties
shall have the right to organize and bargain collectively through
representatives of their own choosing.
SEC. 2. No employees and no one seeking employment shall be
required as a condition of employment to join any organization or to
refrain from joining a labor organization of his own choosing.
SEC. 3. Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other working conditions approved or
prescribed by the President.
SEC. 4. It is the declared purpose of the industry to observe and
carry out the intent of the National Industrial Recovery Act.
SEC. 5. The maximum hours of labor and the minimum rates of
pay for all employees shall be as presented below, subject to excep-
tions as follows:
(1) Individuals excluded by Section 5, Sub-Paragraph A of Title 1
of the National Industrial Recovery Act.
(2) Executives and those employed in supervisory capacities.
(3) Temporary employment in case of emergency.
(4) Seasonal Operations.-Seasonal operations are defined as those
which, on account of elevation or other physical conditions or de-
pendence upon climatic factors, are ordinarily limited to a period of
ten months or less of the calendar year.
The Administrative Committee may authorize employment in a
seasonal operation for a maximum number of hours not exceeding
48 hours in any week, with the exception of parts of an operation
depending on climatic conditions, such as stream driving and sled
hauling, in which a greater excess may be authorized; provided, that
the average employment in any seasonal operation in any calendar
year shall not exceed the standard schedule.
MAXIMUM HOURS OF LABOR
The maximum hours of labor of employees subject to the jurisdic-
tion of this Code shall be 40 hours per week.
MINIMUM RATE OF PAY
Minimum rates of pay to any class of employees shall be not less
than $15.00 per week in any city of over 500,000 population, or in the
immediate trade area of such city; not less than $14.50 per week in
any city of 250,000 to 500,000 population, or in the immediate trade
area of such city; not less than $14.00 per week in any city of between
2,500 and 250,000 population, or in the immediate trade area of such
city; and in towns and rural districts of less than 2,500 population all
wages shall be increased by not less than 20%: Provided, That this
shall not require wages in the excess of $10.00 per week; provided,
however, that wages may be paid upon a piecework basis at such
rates that the average worker on said piecework basis will, with
reasonable diligence and ability, be able to earn the foregoing mini-
mum rates of pay: Provided further, That employers covered by this
Code shall not reduce the wages of their employees who are now
receiving wages between the minimum herein set and $35.00 per week.
On and after the effective date of this Code employers in the Rail-
way Tie Industry shall not employ any minor under the age of
ARTICLE VI-M-ARKETING CODE
The Administrative Committee shall establish a standard form and
method of accounting for the purpose of determining costs. Each
Regional District Committee shall use the methods and forms pre-
scribed by the Administrative Committee, and shall determine and
report to the Administrative Committee average current minimum
costs at principal producing points in each region. These costs are to
be revised from time to time as conditions warrant. The sale and the
offering for sale by persons subject to the jurisdiction of this Code at
prices less than the minimum cost thus established in each regional
district is an unfair method of competition.
Persons subject to the provisions of this Code may sell or dispose of
ties at less than the minimum costs as outlined above where such ties
will not meet the Standard Specifications for ties as adopted by the
Railway Tie Association and the American Railway Engineering
Nothing herein is to be construed as an intent to fix the selling price
of ties, but this Code is intended to prevent or punish any flagrant
offenses of selling below cost, depressing wages or other compensation
as may be generally observed throughout the industry.
(a) This Code is not designed to permit monopolies and shall not
be available for such purpose.
(b) The provisions of this Code shall not be interpreted or admin-
istered so as to eliminate or oppress small enterprises or discriminate
Intentional violations by any person subject to the jurisdiction of
this Code of any provisions of this Code or of any approved rule
issued thereunder or of any agreement entered into by him with the
Administrative Committee to observe and conform to this Code and
set rules is an unfair method of competition and the violator shall be
subject to the penalties imposed by the National Industrial Recovery
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.
Such of the provisions of this Code as are not required to be included
herein by the National Industrial Recovery Act, may, with the approval
of the President, be modified or eliminated if it appears that the public
needs are not being served thereby and as changes in circumstances or
experience may indicate. They shall remain in effect unless and until
so modified or eliminated or until the expiration of the Act. It is
contemplated that from time to time supplementary provisions to
this Code or additional Codes will be submitted for approval of the
President to prevent unfair competition in price and other unfair
and destructive competitive practices and to effectuate the other
purposes and policies of Title 1 of the National Industrial Recovery
Act and which shall not conflict with the provisions hereof.
If any provision of this Code be declared invalid or unenforceable
the remaining provisions shall nevertheless continue in full force and
effect the same as if they had been separately presented for approval
and approved by the President.
This Code shall be in full force and effect beginning fifteen (15)
days after its approval by the President.
UNIVERSITY OF FLORIDA
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