NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JUNE 23, 1934
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Approved Code No. 223-Amendment No. 1
Registry No. 1399-17
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Printing Office, Washington, D.C., and by district offices of the Bureau of
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Approved Code No. 223-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
CONSTRUCTION MACHINERY DISTRIBUTING
As Approved on June 23, 1934
APPROVING AMENDMENTS TO THE CODE OF FAIR COMPETITION FOR THE
CONSTRUCTION MACHINERY DISTRIBUTING TRADE
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 approval of amendments
to a Code of Fair Competition for the Constru'-tion Machinery Dis-
tributing Trade, and hearings having been duly held thereon and
the annexed report on said amendments, containing findings with
respect thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 63543-A, dated December 30,
1933, and otherwise; do hereby incorporate, by reference, said an-
nexed report and do find that said amendments and the Code as con-
stituted after being a mended comply in all respects with the pertinent
provisions and will promote the policy and purposes of said Title
of said Act, and do hereby order that said amendments be and they
are hereby approved, and that the previous approval of said Code is
hereby modified to include an approval of said Code in its entirety
as amended, such approval and such amendments to take effect fifteen
days from the date hereof, unless good cause to the contrary is
shown to the Administrator before that time and the Administrator
issues a subsequent order to that effect.
HUGH S. JOHNSON,
Adlmin'strator for Indu.strial Recovery.
BARTON W. MURRAY,
Acting Division Administrator.
S June 23, 1934.
REPORT TO THE PRESIDENT
The White House.
Sm: This is a report on the amendments to the Code of Fair Com-
petition for the Contruction Machinery Distributing Trade, as re-
vi .ed after a Public Hearing conducted in Washington on May 11,
1:4:)4. in ariordlance with Article X, Section 1 of said Code as ap-
provedl on January 23, 1934.
The amendments which clarify the definition of the Trade and
pertain to procedure of the Code Authority will improve and
simplify the operation of this Code.
The Deputy Admlinistrator in his final report to me on said amend-
ments to said Code having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act, including the removal of
obstriuctions to the free flow of interstate and foreign commerce
which tend to diminish the amount thereof, and will provide for
the .ne.ral welfare by promoting the organization of industry for
tfl purlpo,-, of co.,p,.rative action among trade groups, by inducing
and maintaining united notion of labor and management under
adequate giveriuminental sanction and supervision, by eliminating
unfair competitive practice-. by promoting the fullest possible utili-
zation of the present productive capacity of industries, by avoiding
lunlduel restriction of production (except as may be temporarily re-
quired), by inrea-ini the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemplloynient. by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said Trade normally employs not more than 50,000 employees,
and is inot c:la-sified by me as a major Trade.
(c) The Code as amended complie- in all re-pects with the perti-
nent provision,-, of said Title of said Act, including without limita-
tioin S ubcetiin (a) of Section 3, Suihection (a) of Section 7, and
Subsection (b) of Section 10 thlcr.if.
(d) The Code Aiithlnrity, duly authorized to repre-ent the Trade,
has applied for and a.-,'nts to these a nndments.
(e) The aml'.lldiiN' ts and the C'de as amended are not designed to
and will rnt prmiiiit monopolies ir lmionopolistic practices.
(1) TIh ii!,lliiidiiits and:, the Codrh :i anlmedled are not designed
to and will not eliminate or oppres, small enterprises and will not
operate to discrmiiiiatc ag:ainl-t tlili.
(g) 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, these amendments have b-en approved by me.
subject to a fifteen day stay and opportunity to be heard by all
HUGH S. JOHIIN N,
JUNE 23, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE CONSTRUCTION MACHINERY DISTRIBUTING
Pursuant to Article X, Section 2, of the Code of Fair Competition
for the Construction Machinery Distributing Trade, duly approved
by the President on January 23, 1034, and further to effectuate the
policies of Title I of the Nationmil Industrial Recovery Act, the fol-
lowing amend ieints are established as a part of said Code of Fair
Competition and shall be binding upon every member of the Con-
struction Ma;lhiiinery Distributing Trade.
The first paragraph is hereby amended to read as follows:
"The term 'Construction [Machinery' or 'Machinery', as used
herein, shall include any new and/or used machinery, equipment, or
attachments used in the construction or maintenance of any project,
but not becoming a permanent part of the structure or of its
The -(':.c-nd1 paragraph is hereby amended to read as follows:
The term Cont ruction Machinery Distributor', or 'Distribu-
tor', as used herein, shall include any person other than a manu-
fnitiill'rr (except manufacturers who na-ent for any part of the items
included in this Trade), but without limitation, who warehouses,
sells, rents, or distributes Construction Machinery as hereinabove
Section 3: Sub-section (b) is hereby deleted.
Section 2: There is hereby added at the end of Section 2, a new
section numbered Sec. 2A, to read as follows:
"Mebihers of the Trade who warehouse, sell or distribute Used
Maichinery may, if they desire, elect one additional member of the
Code Authority in any fair miaiiiiier approved by the Admnistilrator."
There is hereby added at the end of Article VI, a new Section, to
be numbered 9, to rea.1 as follows:
SQc. 9, A sssments.-A. It 1Ibing found necessary in order to
support the :aliiiiistration of this Code and to maintain the stand-
ards of fair competition ialtallih.id hereinlider and to effectlate the
policy of the Act, the Code Authority is authorized, subject to the
approval of the Administrator:
"(a) To incur iicli re.a- aiabli. obligations as are necessary and
proper for the forlgoing purposes and to meet such obligations out of
funds which may be raised as hereinafter provided and which ,hall
be held in trust for the purposes of the Code;
"(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem nect sary
(1) an itemized budget of its estimated expenses for the for going
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the Trade;
"(c) After such budget and basis of contribution have bein ap-
proved by the Administrator, to determine and obtain equitable con-
tribution as above set forth by all members of the Trade, and to that
end, if necessary, to institute legal proceedings therefore in its own
"B. Each member of the Trade shall pay to the extent of the
volume of h's or its business under this Code, his or its equitable con-
tribution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regula-
tions pertaining thereto, issued by the Administrator. Only mem-
bers of the Trade complying with the Code and contributing to the
expenses of its administration as hereinabove provided, shall be en-
titled to participate in the selection of members of the Code Author-
ity or to receive the benefits of any of its voluntary activities or to
make use of any emblem or insignia of the National Recovery Ad-
C. The Code Authority shall neither incur nor pay any obligation
in excess of the amount. thereof as estimated in its approved budget,
except upon approval of the Administrator; and no subsequent
budget shall contain any deficiency item for expenditures in excess of
prior budget estimates except those which the Admini.strator shall
have so approved."
ARTICLE VII-TRADE PRACTICES
Section 1 is hereby amended to read as follows:
"SEC. 1. Inducing or attempting to induce a breach of commercial
contract to which a member of the Trade is a party."
Section 2 is hereby deleted and a new Section 2 is hereby added
to read as follows:
SEC. 2. R elitny below lidt price.-No member of the Trade shall
rent or offer to rent any machinery, attachments, or equipment at a
price lower or on terms more favorable than those stated in his pub-
lished price list, or price lists, with discount sheets, if any, filed in
accordance with Article IX."
Section 3 is hereby amended to read as follows:
SE. 3. Paying or allowing secret rebates, refunds, unearned dis-
counts or credits, either in the form of money or otherwise, or secretly
extending to certain customers special se rvices or privileges not ex-
tended to all customers of the same class on like term.-, or conditions."
Section 4 is hereby amended to read as follows:
SEC. 4. Paying or agreeing to pay, directly or indirectly, a
commission or consideration of any kind, except to persons regularly
employed in the distributor's organization or to regularly established
subdealers; provided, however, that nothing in this Section 4 shall
be construed to prevent the allowance of discounts to customers as
prescribed in the distributor's published price lists and discount
The proviso in Section 6 is hereby amended to read as follows:
"Prozidii, however, That damaged, obsolete, noncurrent, and
distress construction machinery, attachments or equipment may be
sold at such prices as are necessary to move the goods into buyers'
hands, but as to new machinery only after filing with the Code
Authority at least ten (10) days in advance of such sale a list show-
ing the quantity and description of such machinery."
Section 12 is hereby amended to read as follows:
"SEc. 12. Quoting delivered prices on new machinery or invoic-
ing piurchaser without adding, to the f.o.b. factory price, transpor-
tation and other cliar:es, and failing to state in quotation, where
freight, is to be prepaid, that such prepaid freight will be charged
as a sepa rate item and billed net cash."
'The following nr.w sections are hereby added:
"SEC. 18. Renting used machinery, equipment, or attachments
witl an option to purchase, with full application of the rentals upon
the purcha-e price, except. upon the following conditions:
"(a) Sale value shall be stated in the contract.
"(b) Said option shall not be for a longer period than thirty (30)
days from date of delivery.
"(c) The terms of payment of the purchase price, in the event of
exercise of the option, shall conform to Section (2) of this Article
Src. 19. In the event of a sale of used machinery, equipment, or
attachmienits during or at the expiration of a lease period or any ex-
teln.-ii thereof, other than a sale upon option as hereinb-,fore pro-
vided, allowing as partial payment of the fair purcha e price, more
than certain percentages of the rentals paid or accrued, such per-
centa,,-s to be determined by the Code Authority for regional areas
with the approval of the Adliinist iatnr.
"SEC. 20. Having any rental arrangement. except as evidenced by
signed agreel mlnit or lease.
"SEC. 21. Renting any machinery upon any agreement unless it
shall provide in all ca-es that the rental charges shall start from the
date of delivery from, and continue to the date of return to, lessor's
warehouse (extlcpt that in the case of shipments by public carries,
the rental period shall be from( date of bill-of-lading to date of bill-
of-lading)), actual traiinportation charges to be paid by lessee in all
Si.:.. Selling any miin:liiiiry under any promise or agreement
to repurchase the same.
Si.c. 23. Rent irng nii},iriiry for an indefinite period of time such
a- tble d(lurnti(lo of a job, for a lump sum or maximum rental which
is less than the price list. or pric,.E li.ts and discount sh-eets, as filed in
:Ia,'ordlai'-e with Article IX."
ARTICLE IX-P I'.IICITr OF PmiICES
Section 1 is hereby anwmidLed to read as fllows:
S(. 1. Each nimiiier of til Trni.l, shall within thirty (30) days
after the effit liv date of this Code file with the Culd Authority
copi'- of his price lists, with discount. shicet.-, if any, showing prices
for all new machinery, attachments, and equipment which said mem-
ber sells. Each member of the Trade shall within thirty (30) days
after the effective date of this amendment file with the Cod Author-
ity a complete schedule of his rental prices based1 upon units of
time. Each member of the Trade shall at all times file and maintain
with the Code Authority price lists, with discount sheets, if any,
showing prices of all new machinery, attachments, and equipment
and all rental schedules, and -hall not make. any change in said
prices except by filing notice of such price changes as hereinafter
There is hereby added a new Section to be numbered 4 and to read
"SEc. 4. Lists and discount sheets filed with the Code Authority
shall be available for the inspection of all members of the Trade
and all other interested parties, and copies thereof shall be furilis.hedc
by the Code Authority to all who agree to pay their pro-rata
share of the cost of the actual additional expense of such ,-nlargedl
Section 4 is hereby amended by renumbering it so that it becomes
EFFECT \T DATE
The foregoing amendments shall become effective on the date of
Approved C,.de No. 223-Anieunuiint No. 1.
Registry No. 139i-17.
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