NATIONAL RECOVERY ADMINISTRATION
AMENDMENT TO SUPPLEMENTARY
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON DECEMBER 31, 1934
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Approved Code No. 347C-Amendment No. 2
Registry No. 1312-07
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Approved Code No. 347C-Amendment No. 2
AMENDMENT TO SUPPLEMENTARY CODE OF FAIR
LOCOMOTIVE MANUFACTURING INDUSTRY
As Approved on December 31, 1934
APPROVING AMENDMENT OF SUPPLEMENTARY CODE OF FAIR COMPETI-
TION FOR THE LOCOMOTrnIE MANUFACTURING INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
An application having been duly made pursuant to and in full com-
pliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of amendment
to a Supplementary Code of Fair Competition for the Locomotive
Manufacturing Subdivision of the Machinery and Allied Products
Industry, and hearings having been duly held thereon and the an-
nexed report on said amendment, containing findings with respect
thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise, does hereby incorporate,
by reference, said annexed report and does find that said amendment
and the Code as constituted after being amended comply in all re-
spects with the pertinent provisions and will promote the policy and
purposes of said title of said Act, and does hereby order that said
amendment be and it is hereby approved, and that the previous ap-
proval of said Supplementary Code is hereby amended to include an
approval of said Supplementary Code in its entirety as amended;
provided, however, that the provisions of Subsection 3 of Section (b)
of Article VI shall not be deemed to require the inclusion of conse-
quential damages in any agreement made by a purchaser to indem-
nify an employer in accordance with ch provisions; provided fur-
their, that suih approval and such amendment shall take effect
twenty-,ine (21) dlays from the date hereof, unless good cause to the
contrary is ,sl.wn to this Board before that time and the Board
issues a subsequent order to that effect.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By WI. A. HAUIIM.\N, Administrative Officer.
BARTON W. MURRAY,
WASHINGTON, D. C.,
December 31, 1934.
REPORT TO THE PRESIDENT
The White House.
Sun: Under the Supplementary Code of Fair Competition for the
Locomotive Manufacturing Subdivision of the Machinery and Allied
Products Industry as approved on April 30, 1934, the Code Author-
ity for said Subdivision has submitted the Amendments which are
included and attached.
Hearing on the Amendments was held August 29, 1934 at the
Washington Hotel in Washington, D. C., and opportunity to be
heard was duly noticed to all interested parties. No objections were
The Assistant Deputy Administrator in his final report on said
Amendments to said Supplementary Code having found as herein
set forth and on the basis of all proceedings in this matter,
It is found that:
(a) The Amendments to said Supplementary Code and the Sup-
plementary Code as amended are well designed to promote the poli-
cies and purposes of Title I of the National Industrial Recovery Act,
including the 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 organiza-
tion of industry for the purpose of cooperative action of labor and
management under adequate governmental sanction and supervision,
by eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) The Supplementary Code as amended complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof.
(c) The aforesaid amendments have been presented in accordance
with the requirements of the National Industrial Recovery Adminis-
tration by the Code Authority which was officially recognized on
August 28, 1934.
(d) The amendments and the Supplementary Code as amended
are not designed to and will not permit monopolies or monopolistic
(e) The amendments andi the Supplementary Code as amended are
not designed to and will not eliminate or oppress small enterprises
and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, these amendments hare been approved.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
DECEMBER 31, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION
LOCOMOTIVE MANUFACTURING INDUSTRY
A DIVISION OF THE
MACHINERY AND ALLIED PRODUCTS INDUSTRY
Pursuant to Article VI, Section (b) of the Supplementary Code
of Fair Competition for the Locomotive Manufacturing Subdivision
of the Machinery and Allied Products Industry, duly approved on
April 30, 1934, and further to effectuate the policies of Title I of the
National Industrial Recovery Act, the following amendments are
established as a part of said Supplementary Code of Fair Competi-
tion, and, upon approval, shall be binding upon every member of
the Locomotive Manufacturing Industry.
Amend Articles VI, VII, VIII, and IX by changing the numbers
of said Articles to VII, VIII, IX, and X respectively; and insert a
new Article VI, which shall read as follows:
ARTICLE VI-UNFAIR TRADE PRACTICES
To accomplish the purposes contemplated by the Act and to pro-
vide against unfair methods of competition, the following provisions
are hereby established:
(a) No employer shall, subsequent to the time of closing a contract
for the sale, by such employer, of any of the products of the Sub-
division, make or give any rebate, credit, discount, allowance or like
concession upon the base sales price stated in the contract, to the
purchaser of such products of the Subdivision, except on account of
changes in the specifications thereof or in compensation or allow-
ance for the materials, equipment, appliances and,-or attachments
purchased by the employer from such purchaser thereunder or fur-
nished to the employer by or on behalf of such purchaser for use
in the construction of the products of the Subdivision covered
(b) No employer shall make or give any rebate, credit, discount
or allowance not l)prohibited by Section (a) of this Article VI to a
purchaser of any of the products of the Subdivision for any mate-
rials, equipment, appliances and/or attachments furnished by or on
behalf of such purchaser to the employer for use in the production
of the products of the Subdivision being produced by such employer
for such purchaser, unless (1) the amount of such rebate, credit,
discount or allowance shall be definitely agreed upon in writing by
such employer and such purchaser at the time the commitment for
the use of such articles by the employer in the production of such
products of the Subdivision is entered into; (2) such purchaser shall
agree to make or cause to be made, delivery of such materials, equip-
ment, appliances and/or attachments at such employer's plant free
of all transportation charges thereon and to assume full responsi-
bility to such employer for such delivery at or before the time when
such materials, equipment, appliances and/or attachments shall be
required by such employer; (3) such purchaser shall agree to
assume full responsibility for any incorrectness in the specifications
of such materials, equipment, appliances and/or attachments thus
furnished, for any non-compliance by such articles with the specifi-
cations thereof and for all defects in material or workmanship in
such articles originating prior to the receipt thereof by the employer
and to assume and indemnify the employer against all expense accru-
ing to or imposed upon the employer with respect to or on account
of such articles because of incorrectness of the specifications thereof,
failure of such articles to comply with the specifications thereof
and/or such defective workmanship or material therein including
the expense incurred by the employer in connection with finishing
and/or installing articles which may be rejected by the purchaser
hnd/or the expense incurred to repair articles to avoid rejection;
and (4) such purchaser shall agree to relieve the employer of any
responsibility for guaranteeing the quality of material and work-
manship in or upon all such materials, equipment, appliances and/or
attachments furnished by or on behalf of the purchaser.,
(c) In any case in which a purchaser of any of the products of
the Subdivision specifies or stipulates the sources from which mate-
rials, equipment, appliances and/or attachments are to be purchased,
or specifies materials, equipment, appliances and/or attachments by
such designations as preclude the possibility of buying such articles
upon the open market in a competitive manner, no employer shall
guarantee any such articles in any manner whatsoever other than to
pass on to such purchaser the guarantee obtained by such employer
from the supplier of such articles.
(d) Nothing in this Article VI contained shall be construed to
prevent the employer from furnishing an appropriate bill of sale
and/or warranty of title for any product of the Subdivision.
(e) The provisions of this Article VI shall not be interpreted as
prohibiting the making of continuing contracts for the sale of parts
which provide for sulbequent adjustments of price based on the mar-
ket price of raw materials or on the volume of purchases or on the
SSee par;i-ranlh 2 ,f oird,.r approving this Amendment.
qualitative characteristics or performance characteristics of the
(f) The provisions of this Article VI shall not apply to the sale
of locomotives propelled by electric motors (including finished and/
or semi-finished component repair or replacement parts thereof or
therefore or for use therein) where employers in this Subdivision are
competing with members of the Electrical Manufacturing Industry,
or to export trade or sales or shipments for export trade. Export
trade shall be as defined in the Export Trade Act adopted April
Approved Code No. 347C---Amendment No. 2.
Registry No. 1312-07.
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