A: approved Code No. 117
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Registry No. 1399-33
NATIONAL RECOVERY ADMIN N
CODE OF FAIR COMPETITION
AS APPROVED ON NOVEMBER 14. 1933
WE DO OUR PART
1. Executive Order
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CODE OF FAIR COMPETITION FOR THE GEAR MANUFACTURING INDUSTRY
An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Gear Manufacturing Industry, and
hearings having been held thereon and the Administrator having
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have been
NOW, THEREFORE, I Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report and recommendations,
and findings of the Administrator and do order that the said code
of fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUsE,
November 14, 1933.
HUGH S. JOHNSON,
NOVEMBEn 10, 1933.
The White House.
Sm: This is a report on the Code of Fair Competition for the
Gear Manufacturing Industry, the hearing having been held in
Washington, November 8, 1933, in accordance with the provisions
of the National Industrial Recovery Act.
PROVISIONS AS TO HOURS AND WAGES
This Code provides for a maximum 40-hour week for all em-
ployees except executive, administrative, supervisory, and technical
employees, and outside sales and service employees receiving $35.00
or more per week; and watchmen and firemen, provided, however,
that watchmen and firemen shall not be permitted to work in excess
of 48 hours per week or in excess of 6 days in any one week. Excep-
tion is also made for those branches of the Industry in which seasonal
or peak demands, the requirements of the continuous gear-making
processes or break-downs place a temporary burden on such branches.
In these special cases, such number of hours may be worked as may
be required, provided that in no such case shall they exceed 48 hours
in any one week.
It is further provided that the emergency overtime in excess of
40 hours per week will not exceed 64 hours during any 6 months'
period. Time and one half the hourly rate is established for all
hours worked in excess of the daily scheduled number of hours and
in excess of 40 hours per week.
The Code provides for a minimum hourly wage of 40 cents per
hour, except that apprentices may be employed at a lesser rate,
provided written contracts with apprentices are filed with the Code
Authority, and handicapped employees whose earning capacity is
limited because of age or physical condition.
Each employer shall file with the Code Authority a list of all
such handicapped persons employed by him, but the number of such
persons employed at less than the minimum rates shall be limited
to 2% of the number of his employees.
A minimum wage of $15.00 per week shall be paid to clerical and
all other employees not covered by the hourly rate, except that a
limited number of office boys or girls may be employed at not less
than 80% of the minimum weekly salary.
Hourly rates, base piecework rates, and salaries above the minimum
will be equitably adjusted by those employers of the Industry who
have not already made adjustments, and in no case shall they be
Complete copies of the Code will be posted in conspicuous places
accessible to employees.
No person under the age of 16 shall be employed or any person
under 18 years of age at hazardous occupations.
ECONOMIC EFFECT OF THE CODE
Employment in the Industry has shown an increase of approxi-
mately 30% in 1933 to date over that of the year 1932. This is at-
tributed partly to the shortening of hours and partly to upswing
in production. There has been an increase of 45% in the number
of workers for the 4 months' period, May to August, over the first
4 months of the year 1933. At the present time, there are approx-
imately 5,000 employees engaged in the Industry as against 8,000
Adjustments in the wage and salary classifications over the mini-
mum rates, when considered in connection with additional reem-
ployment, should represent an increase in pay roll of approximately
$120,000 over that of 1932.
The Administrator finds that-
(a) The Code as recommended complies in all respects with the
pertinent provisions of Title I of the Act, including, without limita-
tion, subsection (a) of Section 7 and subsection (b) of Section 10
thereof; and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership therein and is truly representative of the
Gear Manufacturing Industry; and that
(c) The Code as recommended is not designed to promote monop-
olies or to eliminate or oppress small enterprises and will not operate
to discriminate against them, and will tend to effectuate the policy
of Title I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
HUGH S. JOHNson,
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CODE OF FAIR COMPETITION FOR THE GEAR
To effectuate the policies of Title I of the National Industrial
Recovery Act the following provisions are submitted as a Code of
Fair Competition for the Gear Manufacturing Industry and, upon
approval by the President, shall be the standard of fair competition
for this industry.
The term "industry" as used herein is defined to mean and
include the manufacture for sale of cut-tooth gears, speed reducers
(whether manufactured with or without motor and whether or not
known as mortorized reducers, gear motors or by similar designa-
tions), cut-tooth sprockets, and other similar power-transmission
media; except such of the above described items as are produced by
any manufacturer within another industry as part of the products
of such other industry, including finished and semi-finished parts
thereof and replacement parts therefore and not sold for other uses in
the general market of the industry herein defined.
The term employee as used herein includes any and all persons
engaged in the Industry, however compensated, except a member of
The term member of the Industry includes, but without limita-
tion, any individual, partnership, association, corporation, or other
form of enterprise engaged in the Industry, either as a manufacturer
or on his own or its own behalf.
The term "apprentice as used herein means an individual (usu-
ally a minor), bound by indenture to serve an employer for a term
of years at a predetermined wage for the period of the indenture in
order to learn a trade, art, or profession.
The term member of the Code includes any member of the In-
dustry who shall expressly signify assent to this Code.
The term "Act" means Title I of the National Industrial Recovery
The term President means the President of the United States.
The term "Administrator means the Administrator for National
The term "Administration" means the National Industrial Re-
The term "Association means the American Gear Manufacturers
Association, a trade association now having its office in the First
National Bank Building, Wilkinsburg, Pennsylvania.
The term Executive Committee means the Executive Committee
of the Association.
The term "effective date ", as used herein, is defined to mean the
eleventh day after this Code shall have been approved by the
As required by Section 7 (a) of Title I of the National Industrial
Recovery Act, the following provisions are included in this Code:
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection;
(2) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
No employee shall be permitted to work in excess of 40 hours per
(1) Executive, administrative, supervisory, and technical em-
ployees, and outside sales and service employees, who receive $35.00
or more per week; and
(3) Watchmen and firemen, provided, however, that watchmen
and firemen shall not be permitted to work in excess of 48 hours
per week or in excess of six days in any week.
The foregoing limitations shall not apply to branches of this
Industry in which seasonal or peak demands, or the requirements
of a continuous gear-making process or a breakdown, place an un-
usual and temporary burden on such branches. In any such case
such number of hours may be worked as are required by the neces-
sities of the situation, provided that in no such case shall the hours
worked in any one week exceed 48, and provided further that the
number of hours worked in any six months' period in excess of 40
hours per week shall not exceed 64 hours.
Where in any case an employee works in excess of the daily
scheduled number of hours or in excess of 40 hours in any one week
such extra time shall be compensated for at not less than one and
one half times the hourly rate of such employee.
No employee shall knowingly be permitted to work for a total
number of hours in excess of the number of hours prescribed for the
week, whether employed by one or more employers.
No employer shall reclassify employees or duties of occupations
performed for the purpose of defeating the provisions of the Act
or of this Code.
The minimum wage that shall be paid to any employee shall be
forty cents (40t) per hour, with the following exceptions:
(1) Apprentices.-Any employee apprenticed to any employer by
an indenture made in pursuance of the laws of any State of the
United States, or by a written contract under any apprentice sys-
tem established and maintained by an employer, provided such
agreements are, and each additional agreement as made is, filed with
the Code Authority, and provided that this exception shall apply to
such employees only during the period that they are receiving less
than the minimum rate.
(2) Handicapped Employees.-An individual whose earning ca-
pacity is limited because of age or physical or mental handicap may
employed on light work at a wage below the minimum estab-
lished by this Code if the employer obtains from the State Authority
designated by the United States Department of Labor a certificate
authorizing his employment at such wages and for such hours as
shall be stated in the Certificate. Each employer shall file with the
Code Authority a list of all such persons employed by him, but the
number of such persons shall be limited to 2% of his employees.
Clerical Emnployees.-The minimum wage that shall be paid by
any employer to any of the accounting, clerical, office, service, or
sales employees shall not be less than $15.00 per week; provided,
however, that office boys or girls, limited in number to not more than
5% of the total number of employees in any factory, may be paid
not less than 80% of the above minimum.
The hourly rates, base piecework rates, and salaries for all duties
and occupations now paid at more than the minimum herein pre-
scribed shall be equitably adjusted by all members of the Industry
who have not already done so, and in no case shall these rates be
decreased. Reports concerning the action taken, whether prior to or
after the date of approval of this Code, shall be reported to the Code
Authority not later than ninety (90) days after the effective date,
and to the Administrator upon his request.
No distinction in rates shall be made between male and female
employees where the same class of work is performed, regardless of
whether compensation is calculated on an hourly, weekly, monthly,
piecework, or other basis.
Posting.-All employers shall post complete copies of this Code in
conspicuous places accessible to employees.
No provisions in this Code shall supersede any State or Federal
law which imposes more stringent requirements on employers as to
age of employees, wages, hours of work, or general working condi-
ARTICLE VI-CHILD LABOR
On and after the effective date no employer shall employ any per-
son under the age of sixteen years, or any person under eighteen
years of age in any hazardous occupation.
1. To further effectuate the policies of the Act, a Code Authority
is hereby set up to cooperate with the Administrator in the adminis-
tration of this Code.
(a) The Code Authority shall consist of six members of the
Association (no two of whom shall represent the same manufac-
turer), appointed by and subject to the direction of the Executive
Committee of the Association; one representative of members of the
Industry who are not members of the Association (providing they
desire such representation, and signify their willingness to pay their
pro rata share of the cost of administering this Code); and one
or more appointees of the Administrator, if he so desires. The ap-
pointee or appointees of the Administrator shall act in an advisory
capacity only, and shall have no vote. The representatives of the
nonmembers shall be elected by the nonmembers in any fair manner
approved by the Administrator.
(b) Any member of the Industry is eligible for membership in the
Association, and there shall be no inequitable restrictions on such
membership. Any such member may participate in the preparation
of and any revision or additions or supplements to this Code by as-
suming his pro rata share of the cost and responsibility of creating
and administering it, either by becoming a member of the Associa-
tion and paying the annual dues and assessments of the Associa-
tion, or by paying to the Code Authority his pro rata share of the
costs. There shall be no initiation fee for members of the Industry
who participate only in the Code and do not become members of
2. The Code Authority shall have the following duties and powers
the exercise of which shall be reported to the Administrator and
shall be subject to his right, on review, to disapprove or modify any
action taken by the Code Authority.
, (a) To collect from members of the Industry all data, reports,
and statistics when and as required by the President and/or the
Administrator and/or their agent or agents; also to collect such
data, reports, and statistics as may be required from time to time
by the Code Authority. All such information shall be confidential,
except insofar as disclosure may be necessary for the effective admin-
istration and enforcement of this code. Such data as may be re-
quested by the Administrator shall be made available to him. Re-
ports submitted by the Code Authority to the President or the
Administrator shall be in the form prescribed or provided by him.
(b) In addition to information required to be submitted to the
Code Authority, there shall be furnished to government agencies
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the National Indus-
trial Recovery Act.
(c) The Code Authority may require from the members of the
Industry reports regarding prices, or prices and discounts on closed
transactions, or such other pertinent data on closed transactions as in
its opinion may be necessary to effectuate Title I of the Act, and may
publish the same should such procedure be deemed advisable.
(d) To represent the Industry in conferring with the President
or his agents with respect to the Administration of this Code and in
respect of the Act and any regulations issued thereunder.
(e) To hear complaints and attempt to adjust the same.
(f) To coordinate the Administration of this Code with such codes,
if any, as may be adopted by any subdivision of this Industry or any
related industry, with a view to providing joint and harmonious
action on all matters of common interest, all with approval of the
(g) To study the marketing and trade practice provisions of Ar-
ticles IX and X hereof, and the operation thereof, and make recom-
mendations from time to time to the Administrator which it deems
desirable for modification or addition thereto, which, upon the
approval of the Administrator, after such hearing as he may pre-
scribe, shall become a part of this Code and have full force and effect
as provisions hereof.
(h) To make rules and regulations necessary for the administra-
tion and enforcement of this Code, subject to the right of any affected
person to appeal to the Administrator.
(i) Any notice, demand, or request required or permitted to be
given to or to be made upon any member of the Industry shall be
sufficiently given if mailed, postage prepaid, addressed to such mem-
ber of the Industry at his address on file with the Secretary of the
(j) If the Code Authority determines that in any branch or sub-
division of the Industry it has been the generally recognized prac-
tice to sell a specified product on the basis of printed net price lists,
or price lists with discount sheets, and fixed terms of payment which
are distributed to the trade, each manufacturer of such product shall
within ten (10) days after notice of such determination file with the
Code Authority a net price list or a price list and discount sheet, as
the case may be, individually prepared by him showing his current
prices, or prices and discounts, and terms of payment, and the Code
Authority shall immediately send copies thereof to all known manu-
facturers of such specified product, and shall hold such copies and
any revisions available to the trade. Revised price lists with or
without discount sheets may be filed from time to time thereafter
with the Code Authority by any manufacturer of such product, to
become effective upon the date specified therein, but such revised
price lists and discount sheets shall be filed with the Secretary of
the Code Authority ten days in advance of the effective date, unless
the Code Authority shall authorize a shorter period. Copies of
revised price lists and discount sheets, with notice of the effective
date specified, shall be immediately sent to all known manufacturers
of such product, who thereupon may file, if they so desire, revisions
of their price lists and/or discount sheets, which shall become effec-
tive upon the date when the revised price list or discount sheet first
filed shall go into effect.
(k) If the Code Authority shall determine that in any branch or
subdivision of the Industry not now selling its products on the basis
of price lists with or without discount sheets with fixed terms of
payment the distribution or marketing conditions in said branch
or subdivision are similar to, or the same as, the distribution or
marketing conditions in a branch or subdivision of the Industy
where the use of price lists with or without discount sheets is well
recognized, and that a system of selling on net price lists or price
lists and discount sheets should be put into effect in such branch or
subdivision, each manufacturer of the product or products of such
branch or subdivision shall within twenty (20) days after notice of
such determination file with the Code Authority net price lists or
price lists and discount sheets as the Code Authority may direct
containing fixed terms of payment showing his prices and discounts
and terms of payment, and such price lists and/or discount sheets
and terms of payment may be revised, and shall be distributed and
held available to the trade, in the manner hereinabove provided.
ARTICLE VIII-ACCOUNTING AND COSTING
Every employer shall use an accounting system which conforms
to the principles of the uniform and standard chart of accounts set
forth in the Recommended Practice for Uniform Cost Accounting
issued by the Association, and a costing system which conforms to
the principles of the standard uniform method of costing to be
formulated and approved by the Executive Committee and made
supplements to the said Manual of Accounting or method of costing,
subject to the approval of the Administrator.
Guarantees against decline in price, or protection against advance
in price, shall not be extended over a period greater than ninety
Prices quoted on a specified quantity shall not be applicable to a
lesser quantity. If lesser quantities are shipped under a contract
calling for a larger quantity, billing prices shall be those quoted
or consistent with the actual quantities shipped.
It shall be permissible for a bidder to offer any substitute which
he feels is equal, superior, or more desirable to meet the specifica-
tions of the bid; but if substitute does not conform to the specifica-
tions of the bid, it must be so specifically stated.
ARTICLE X-UNFAIR PRACTICES
The following acts, as described, shall constitute unfair methods
(a) The paying of lower wages than prescribed herein or the
operation of hours of labor in excess of the maximum herein pre-
(b) The sale or exchange of any product, in whole or in part,
below the seller's cost of such porduct in whole or in part, as de-
termined in accordance with the cost and accounting systems referred
to in Article VIII, provided that any seller may sell a product below
his cost to meet the price of any competitor whose price for such
product is not below such competitor's cost. Obsolete material, how-
ever, may be sold at its depreciated value by permission of the Code
(c) To sell directly or indirectly by any means whatsoever any
product of the Industry covered by the provisions of paragraphs
(j) and (k) of Articles VII at a price lower or at discounts greater
or on more favorable terms of payment than those provided in
current net price lists or price lists and discount sheets filed with
the Secretary of the Code Authority.
(d) Withholding from or inserting in, any invoice, words or
figures which make or tend to make such invoice a false record,
wholly or in part, of the transaction represented on the face thereof;
or the payment or allowance of secret rebates, refunds, credits, un-
earned discounts, whether in the form of money or otherwise; or
the extension to certain purchasers of prices, services, or privileges
not extended to all purchasers under like conditions.
(e) To defame or disparage a competitor, directly or indirectly,
by words or acts which untruthfully impugn his business integrity,
his ability to keep his contracts, his credit standing, or the quality
of his products; or advertising, marking, branding, labelling prod-
ucts, and making statements regarding products the purport or effect
of which may be misleading or tend to deceive purchasers as to the
quantity, quality, grade, or substance of the goods purchased.
(f) To imitate or simulate the trade mark, trade name, package,
wrapper, or label of a competitor's product to such a degree as to
deceive or have a tendency to deceive customers.
(g) To give, or permit to be given, to agents, employees, or rep-
resentatives of customers or to agents, employees or representatives
of competitors, money, or anything of value, to induce them to
influence their employers or principals to purchase or contract to
purchase products of this Industry, or to influence such employers
or principals to refrain from contracting with competitors.
(h) To misrepresent to one source of supply directly or indirectly,
in conducting negotiations as a purchaser of materials for use in
the Industry, the offer of a competing source of supply.
ARTICLE XI-ScoPE OF CODE
(a) This code is intended to be a Basic Code and to cover the
entire industry. It is understood, however, that groups of the indus-
try may formulate Supplementary Codes of Fair Practice, defining
that part of the industry and specifying such additional regulations
as may be considered advisable. These regulations, however, shall
conform to the principles of the Basic Code. Such codes, when
approved by the President, shall have the same force as this Code.
(b) The provisions of this Code shall apply to and affect only that
part of production included in this industry.
(c) In accordance with the provisions of Section 10 (b) of the Act
the President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the Act.
UNIVERSITY OF FLORIDA