NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
COIN OPERATED MACHINE
AS APPROVED ON JANUARY 23, 1934
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Approved Code No. 228
Registry No. 1334-01
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Approved Code No. 228
CODE OF FAIR COMPETITION
COIN OPERATED MACHINE MANUFACTURING
As Approved on January 23, 1934
APPROVING CODE OF FAIR COMPETITION
COIN OPERATED MACHINE MANUFACTURING
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 a Code of
Fair Competition for the Coin Operated Machine Manufacturing
Industry, and hearings having been duly held thereon and the an-
nexed report on said Code, containing findings with respect thereto,
having been made and directed to the President:
NOW, THEREFORE, in 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. 6543-A, dated December 30,
1933, and otherwise, do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be, and it is hereby, approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
WAsmH GTON, D.C.,
January 23, 1934.
The White House.
Sna: This is a report on the Code of Fair Competition for the
Coin Operated Machine Manufacturing Industry, and on the hear-
ing conducted thereon in Washington, D.C., on November 23, 1933,
in accordance with the provisions of the National Industrial Recov-
PROVISIONS AS TO WAGES AND HOURS
The Code provides a minimum wage rate for production employees
of 40 per hour in the North and 350 per hour in the South. Watch-
men, a limited number of handicapped persons, and, for not to ex-
ceed 90 days, a limited number of beginners without experience, may
be paid not less than 80% of the foregoing minima.
All other employees are to be paid not less than from $14 to $15
per week, according to population, except that a limited number of
(,tffii boys or girls may be paid not less than 80% of these minima.
Equitable adjustment is to be made of wages above the minima
to maintain differentials existing as of May 1, 1933.
An eight-hour day and a 40-hour week are provided, except that
whlii nece-,itted by peak or breakdown demands, employees may
work not to exceed 48 hours per week. Hour worked in excess of
40 hours per week without payment of overtime, shall not exceed,
in any six months' period, 32 hours for production employees and 48
hours for all other employees, and in no case may any employees
work in excess of 96 hours in any two weeks' period.
No detaiiled statitiics relative to this Industry had been collected
prior to the formation of the National Assnciation of Coin Operated
Mah,.ine M-lnufl;itilrers in August 1933. This Association has at-
tempted to get figures from every known manufacturer in the Indus-
try and ba ed on the returns received up to the time of preparing
this report, plus a reasonable estimate for those concerns which had
not at that time reported, the following figures are submitted as the
best ( etim:ite possible under the conditions:
Number Mini- Weekly
of em- mum Hours per week P aoll
ployees wages ayr
1928.... ..-----------.--- ---------------- -----.. 2,407 $0.37 41-48 44 $54,900
1930 ----------------------------------------------- 2, 501 .37 41-48 44 57,000
1932.......-------................----......... 2,390 .31 41-48 44 45,300
March 1933 ...----------.------------......---- 2, 501 .285 41-45 43 46,400
elh t iiilr-r 1933 ................-------------------- 3,192 .340 39-42 40 53.200
Laiimated under 'odle.............................. 3,300 .400 ----.... 40 00,000
Practically all icmembers of the Association signed the President's
Reemployment Agreement in August, and the increase in employ-
ment resulting from reduced hours is indicated in the figures of the
first twelve companies to report. These companies show a pay roll of
1,416 employees for the month of March 1933, and a pay roll of 1,892
employees for the month of September 1933, an increase of 33.6%
over March 1933.
The total amount paid in wages to factory employees only by these
same twelve companies increased from $116,789.77 in March 1933
to $133,174.77 in September 1933. Reports from several of these
companies for the first half of November 1933 show further sub-
stantial increases in employment.
Based on these returns, it is estimated that the effect of operating
under the Code Provisions will be an increase in the annual pay roll
of at least $300,000 over the annual rate of pay roll as shown in
I believe that the Code as proposed is fair to Industry, to Labor,
and to the Consumer and is in accordance with the intent and pur-
pose of the National Industrial Recovery Act.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of indus-
try for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agri-
cultural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an industrial group truly representative of the aforesaid Industry;
and that said group imposes no inequitable restrictions on admission
to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is 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 Code.
For these reasons, therefore, I have approved this Code.
HUGH S. JOHNSON,
JANUARY 23, 1934.
CODE OF FAIR COMPETITION
COIN OPERATED MACHINE MANUFACTURING
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 Coin Operated Machine Manufacturing
Industry, and upon approval by the President, shall be the standard
of fair competition for such Industry and shall be binding upon
every member thereof.
SECTION 1. The term "Industry" as used herein shall mean and
include the coin operated machine manufacturing industry consist-
ing of manufacturers of all types of coin operated machines and
devices which vend amusement, service, or commodities, including
manufacturers of coin actuated devices for use in such machines, or
such related branches or subdivisions thereof as may from time to
time be included under the provisions of this Code by the President
after such notice and hearing as he may prescribe, but shall not
include manufacturers of coin operated telephone or gas-meter
SEC. 2. The term member of the industry as used herein means
and includes any individual, partnership, association, corporation,
receiver, trustee, or other person, without limitation, engaged in the
Industry, either as an employer or on his or its own behalf.
SEC. 3. The term "employee" as used herein, includes any and
all persons engaged in the Industry except a member of the Industry,
SEC. 4. The terms President" ",Act", and "Administrator as
used herein shall mean respectively the President of the United
States, Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
SEC. 5. (a) The term "South" as used herein shall mean the
States of North Carolina, South Carolina, Georgia, Florida, Ken-
tucky, Tennessee, Alabama, Mississippi, Louisiana, and Texas.
(b) The term "North as used herein shall mean the remaining
States of the United States.
SEC. 6. Population, for the purposes of this Code, shall be deter-
mined by reference to the latest Federal census.
SEC. 7. The words export trade as used herein shall mean solely
trade or commerce in goods, wares, or merchandise exported or in
the course of being exported from the United States to any foreign
ARTICLE III-LABOR PROVISION S
SECTION 1. As required by Section 7 (a) of Title I of the National
Industrial Recovery Act, the following provisions are conditions of
(a) 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.
(b) 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 organiza-
tion of his own choosing.
(c) 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.
SEC. 2. No person under sixteen (16) years of age shall be em-
ployed in.the Industry. No person under eighteen (18) years of
age shall be employed at occupations which are hazardous in nature
or dangerous to health. The Code Authority shall submit to the
Administrator for approval within sixty (60) days after approval
of this Code a list of such occupations. In any State an employer
shall be deemed to have complied with this provision as to age if
he shall have on file a valid certificate or permit duly signed by the
Authority in such State empowered to issue employment or age cer-
tificates or permits showing that the employee is of the required age.
SEC. 3. (a) On and after the effective date the minimum wage
which shall be paid by any employer to any employee engaged in
the proce-sing of products in the Industry and any labor incident
thereto -hall be forty (400) cents per hour in the North.
(b) On and after the effective date the minimum wage which
shall be paid by any employer to any employee engaged in the pro-
ce.-sinr of products of the Industry or any labor incident thereto
shall be thirty-five cents (35N) per hour in the South.
(c) Provided that for a period of not to exceed ninety (90) days,
beginners without experience may be paid not less than eighty per-
cent (80r ) of the minimum wages of forty cents (40) per hour
in the North, and thirty-five cents (35) per hour in the South; the
total number of such beginners shall not exceed five percent (5i)
of the total number of employees employed by any such employer in
any calendar month; and
(d) Provided further, that where any State Law requires any
higher minimum wages than those specified in this section, such
higher minimum wages shall apply in all cases.
(e) Equitable adjustments to maintain differentials existing as of
May 1, 1U33, in all pay schedules of factory employees (and other
employees receiving less than Thirty-five ($35.00) Dollars per week)
above the minimums shall be made on or before fifteen days subse-
quent to the effective date of tlis Code by any employers who have
not heretofore made such adjustments, or who have not maintained
rates comparable with such equitable adjustments. The first reports
of wages required to be filed under this Code shall contain all wage
increases made since May 1, 1933.
(f) In the case of employees performing work for which they are
paid per piece of work performed, the minimum rate of pay which
each member of the Industry shall pay for such work shall produce
earnings per hour per employee for the number of hours worked
in any pay period at least equal to the minimum rate of pay per
hour provided in this Code for the same type of labor on an hourly
SEC. 4. On and after the effective date the minimum wage that
shall be paid by any employer to all other employees, except com-
mission sales people and all employees covered by Section 3 of Article
III hereof, shall be not less than at the rate of Fifteen Dollars
($15.00) per week in any city of over Five Hundred Thousand (500,-
000) population, or in the immediate trade area of such city; nor less
than at the rate of Fourteen Dollars and fifty cents ($14.50) per
week in any city between Two Hundred and Fifty Thousand (250,-
000) and Five Hundred Thousand (500,000) population, or in the
immediate trade area of such city; nor less than at the rate of
Fourteen Dollars ($14.00) per week in any city of Two Hundred
and Fifty Thousand (250,000) population or less.
Office boys and girls shall be exempt from the provisions of this
section, provided they are paid at a rate of not less than eighty
percent (80%) of the above minimum wages, and provided further
that the number of such office boys and girls under this section shall
not exceed one for companies with twenty (20) or less office em-
ployees nor five percent (5%) of the total number of office employees
for companies with more than twenty (20) office employees.
SEc. 5. (a) No employee shall be permitted to work in excess of
forty (40) hours in any one week. The normal working day shall
not be in excess of eight (8) hours in any twenty-four (24) hour
period beginning at midnight. There may be the following excep-
tions to this weekly-hour provision:
1. Executives, administrative or supervisory employees who receive
thirty-five dollars ($35.00) or more per week, and outside salesmen
and commission salesmen, shall be exempt from all hour limitations.
2. Employees engaged in the processing of products in the Indus-
try and work incident thereto in branches of the Industry on which
seasonal or peak demands place an unusual and temporary burden,
and employees working in emergency periods resulting from break-
downs, may be permitted to work not more than thirty-two (32)
additional hours in any six (6) months' period, but not more than
forty-eight (48) hours in any one week, without the payment of
overtime as provided in Section 5 (a) 4.
3. Also under like conditions to those described in Section 5 (a) 2
all other employees, except those mentioned in Section 5 (a) 2, may
be permitted to work not more than forty-eight (48) additional
hours in any six (6) months' period, but not more than forty-eight
(48) hours in any one week, without the payment of overtime as
provided in Section 5 (a) 4.
4. All employees may be permitted to work hours in addition to
those specified in Section 5 (a), 5 (a) 2, and 5 (a) 3, provided that
overtime at the rate of one and one half times the normal rate of
pay is paid for such additional hours. Under no circumstances may
any employee be permitted to work in excess of ninety-six (96)
hours in any two consecutive weeks.
5. All hours worked in excess of forty (40) hours in any one
week after the date of the approval of the Code shall be reported
to the Admicnistrator through the Code Authority.
6. No employee shall knowingly be permitted to work in the
aggregate in excess of the above-prescribed number of hours irre-
spective of whether such employee be on the pay roll of more than
GENERAL LABOR PROVISIONS
SECTION 1. (a) It is understood, however, that old and partially
disabled employees are not included in the above wage provisions,
except that they shall in no case be paid less than eighty (80) per-
cent of the above minimums, and provided that the total number of
such employees shall not exceed two (2) employees in plants having
less than one hundred (100) employees, nor more than two (2) per-
cent of the total number of employees in such plants employing one
hundred (100) or more.
(b) It is further understood that watchmen are not included in
the labor provisions of this Article, except that they shall in no case
be paid less than eighty (80) percent of the minimum wages herein
specified and in no case shall they be permitted to work longer than
fifty-six (56) hours in any one week unless they are paid time and
one half for any hours in excess of fifty-six (56) hours per week.
SEC. 2. Employers shall not reclassify employees, or duties, or oc-
cupations of employees, nor engage in any other subterfuge, so as to
defeat the purposes of this Act.
SEC. 3. Complete copies of this Code shall be posted in conspicuous
places accessible to all employees.
ARTICLE IV-ORGANIZATION, POWERS, AND DUTIES OF THE CODE
SECTION 1. A Code Authority is hereby constituted to cooperate
with the Administrator in the administration of this Code.
SEC. 2. The Code Authority shall consist of not less than five or
more than seven members, to be elected by the members of the In-
dustry who assent to by compliance with the requirements of this
Code, and who assume their reasonable share of the expenses of the
administration as hereinafter set forth, the method of election and
voting to be determined by the Code Committee of the National As-
sociation of Coin Operated Machine Manufacturers, subject to the
approval of the Administrator, and in addition thereto, there may
be from one to three representatives to be appointed by the Admin-
istrator. The representatives who may be appointed by the Admin-
istrator shall be without vote and together with the Administrator
shall be given notice of and may sit at all meetings of the Code
SEC. 3. The National Association of Coin Operated Machine Man-
ufacturers may be designated as the agency under the Code Author-
ity for administering provisions of this Code.
SEc. 4. The National Association of Coin Operated Machine Man-
ufacturers and/or other associations directly or indirectly partici-
pating in the selection or activities of the Code Authority shall
(1) impose no inequitable restrictions on membership, and (2) sub-
mit to the Administrator true copies of its articles of association, by-
laws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
SEC. 5. In order that the Code Authority shall at all times be truly
representative of the Industry and in other respects comply with
the provisions of the Act, the Administrator may provide siich hear-
ings as he may deem proper; and thereafter if he shall find that the
Code Authority is not truly representative or does not in other respects
comply with the provisions of the Act, may require an appropriate
modification in the method of selection of the Code Authority.
POWERS AND DUTIES
SEC. 6. The Code Authority shall have the following powers and
duties to the extent permitted by the Act. Any action taken by the
Code Authority or its delegated agents relative to the administration
of this Code, except where made subject to the approval of the Ad-
ministrator, may, in the discretion of the Code Authority, be sub-
mitted to the Administrator for approval and in any case shall be
subject to the disapproval of the Administrator.
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the C<-de in accord-
ance with the powers herein granted, except that a majority of the
voting members shall be required for a quorum and a vote by a like
number shall be required to make effective any frnmal action by
the Code Authority. The Code Authority shall submit its bylaws
and rules and regulations for procedure, administration, and enforce-
ment to the Administrator for his approval, together with true
copies of any amendments or additions when made thereto, minutes
of meetings when held, and such other information as to its activities
as the Administrator may deem necessary to effect the purposes of
(b) To obtain from members of the Industry as soon as the neces-
sary readjustments within the Industry can be made, reports based
on periods of one, two, or four weeks, or multiples thereof, for use
of the Code Authority and the Administrator in the administration
and enforcement of the Code, and for the information of the Presi-
dent, and to give assistance to members of the Industry in improv-
ing methods, or in prescribing a uniform system of accounting and
reporting. All individual reports shall be kept confidential and
only general summaries thereof may be published.
(c) To receive complaints of violations of this Code, make investi-
gations thereof, provide hearings thereon and adjust such complaints,
and bring to the attention of the Administrator for prosecution,
recommendations and information relative to unadjusted violations.
(d) To secure an equitable and proportionate payment of the
expenses of maintaining the Code Authority and its activities from
those members of the Industry who accept the benefits of the activ-
ities of the Code Authority and indicate their desire to participate
in this Code and their assent to the provisions thereof and to the
payment of their reasonable share of the expenses of the administra-
tion of the Code as hereinafter set forth.
(e) In the event of dispute arising as to the rights under this
Code, any member shall have the right to appeal to the Code Au-
thority, and the decision of said Code Authority on said appeal shall
be final, subject only to appeal to the President or his duly authorized
SEC. 7. In addition to the information required to be submitted
to the Code Authority, there shall be furnished to government agen-
cies such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act.
SEO. 8. Each member of the Industry participating in and shar-
ing the benefits of the Code and assenting to liability for his share
of the cost of administering same shall pay to the Code Authority
or to the agent duly established by the Code Authority his reason-
able share of the expenses of the Code administration, such reason-
able share of said expenses to be determined by the Code Authority
subject to review by the Administrator on the basis of volume of
business and/or such other factors as may be just or equitable.
SEC. 9. Nothing contained in this Code shall constitute the mem-
bers of the Code Authority partners for any purpose. Nor shall
any member of the Code Authority be liable in any manner to any-
one for any act of any other member, officer, agent, or employee of
the Code Authority exercising reasonable diligence in the conduct
of his duties hereunder, nor be liable to anyone for any action or
omission to act under the Code, except for his own willful misfeas-
ance or nonfeasance.
SECTION 1. Every employer shall use a cost-accounting system
which will conform to the principles of and is at least as detailed
and complete as the uniform and standard method of cost account-
ing to be prescribed by the Code Authority subject to the approval
of the Administrator. The Code Authority shall specify those items
of cost determined pursuant to this Article hereof which shall be
included in allowable cost.
SEc. 2. (a) No manufacturer of the Industry shall sell any product
of the Industry at a price below his own individual cost. Provided,
that this shall not apply to merchandise vending machines sold,
leased, or supplied by a manufacturer for the sole purpose of vend-
ing some commodity on which the manufacturer of the machine is
to make a profit. Provided further, that any member of the Indu.s-
try may meet the price competition of anyone whose cots under this
Code provision are lower.
(b) Provided that ob-olete patterns, discontinued models or sur-
plus stock may be sold at such prices as are nIces.-a y to effect a sale
subject to rules as established or modified from time to time by the
Code Authority. All such propo.-Ced sales inu.-t be reported to the
Code Authority prior to making the sale. Any sale made under this
provision which is made for the purpose of evading paragraph (a)
of this Section, is an unfair method of competition.
SEC. 3. No provision of this Code relating to price and/or terms
of selling, shipping, and/or marketing shall apply to export trade
and/or to trade and/or to sales and/or shipments for export trade.
ARTICLE VI-TRADE PRACTICE RULES
For all purposes of the Code the following acts described in this
Article shall constitute unfair practices, and any member of the
Industry who shall directly or indirectly, through any officer, em-
ployee, agent, or representative, knowingly use, employ, or peZrit,
to be employed any of such unfair practices shall be guilty of a
violation of the Code:
(a) The intentional misrepresentation of the products sold, or
the making, or causing or permitting to be made or published, of
any false, misleading, or deceptive statements by way of advertise-
ment, invoice, or otherwise, concerning the size, quantity, chara.'t, r,
and nature of any coin operated machine or kindred products,
bought or sold.
(b) 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,
and of the secret payment or allowances of rebates, refunds, credits,
unearned discounts, whether in the form of money or otherwise.
(c) The making of, or causing or perm-itting to be made, any
false or deceptive statements, either written or oral, coIncrning in-
stallations or sales previously made, or the claiming by any manu-
facturer that equipment actually supplied and installed by others
was supplied and installed by him, or the making of any other
misleading or deceptive statements.
(d) 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.
(e) Inducing or attempting to induce, by any means or device
whatsoever, a breach of contract between a competitor and a cus-
tomer during the term of such contract.
(f) The copying or imitation of the design or construction of a
machine or device containing new or novel features or any material
parts thereof, in which the owner or manufacturer has property
rights, which can be protected by legal proceedings, by competitors
for their own use prior to the end of the year following that in
which they were originated.
(g) Securing information from competitors concerning their busi-
nesses by false or misleading statements or representations, or by
false impersonation of one in authority, and the wrongful use thereof
to unduly hinder or stifle the competition of such competitors.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with Section
10 (b) of Title I of the National Industrial Recovery Act, from time
to time to cancel or modify any order, approval, license, rule, or regu-
lation issued under Title I of said Act.
SEC. 2. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modification to be based upon application to the Admin-
istrator and such notice and hearing as he shall specify, and to be-
come effective on approval by the President.
If any employer of labor in this Industry is also an employer of
labor in any other Industry, the provisions of this Code shall apply
to and affect only that part of the business which is a part of the
Coin Operated Machine Manufacturing Industry.
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
This Code shall become effective on the tenth day after its ap-
proval by the President.
Approved Code No. 228.
Registry No. 1334-01.
UNIVERSITY OF FLORIDA
I 12 III 62IIlIII I08582 8993
3 1262 08582 8993