Approved Code No. 138 Registry No. 1318-1-02
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON NOVEMBER 27, 1933
1. Executive Order
2. Letter of Transmittal
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Approved Code No. 138
Registry No. 1318-1-02
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Approved Code No. 138
CODE OF FAIR COMPETITION
ANTI-FRICTION BEARING INDUSTRY
As Approved on November 27, 1933
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 Anti-Friction Bearing Industry, and hear-
ings 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 compe-
tition complies in all respects with the pertinent provisions of title I
of said act and that the requirements of clauses (1) and (2) of sub-
section (a) of section 8 of the said act have been met:
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.
HUGH S. JOHNSON,
THE WHIT HOUSE,
November 27, 1933.
NOVEMBER 14, 1933.
The White House.
SIR: This is a report on the Code of Fair Competition for the
Anti-Friction Bearing Industry in the United States, the hearing
having been conducted in Washington on October 24,1933, in accord-
ance with the provisions of the National Industrial Recovery Act.
PROVISIONS FOR HOURS AND WAGES
Factory employees are limited by the Code to 40 hours per week
and 8 hours per day; except during periods of unusual production
demand, when 48 hours per week will be permitted in any 6 weeks
of any 6-month period, provided that the average over a 6-month
period is no more than 40 per week. These employees as well as
those engaged in emergency maintenance and repair work (to whom
the hour limitation will not apply) will be paid time and a half
overtime rate for all hours worked in excess of 8 per day or 40 per
week. A tolerance of 10 percent over 40 hours per week is provided
for employees engaged in preparation, care, and maintenance, stock
and shipping clerks, and deliverymen.
The hour limitation will not apply to service men, traveling sales-
men, nor to persons in a managerial, executive, or supervisory capac-
ity receiving $35.00 per week or more. Watchmen will be limited to
56 hours per week. Accounting, clerical, service, sales, or other
salaried employees are limited to 40 hours per week averaged over
any one-month period, and 48 hours in any one week.
The minimum wage provided for factory workers will be 40 cents
per hour; except for work not requiring the strength and skill of
adult male labor, for which the minimum will be 35 cents an hour.
The minimum wage for office employees will be $15.00 per week in
cities of over 500,000 population and fractionally less in proportion
to the population in smaller cities down to $14.00 per week. The
minimum to office boys and girls, messengers, and old or partially
disabled employees will be not less than 80 percent of the rates for
their class of work. No distinction in rates will be made between
male and female employees in the same occupation.
No person under 16 years will be employed in this Industry, and
not under 18 years in hazardous occupation.
ECONOMIC EFFECT OF CODE
The 40-hour week prescribed in this Code and adopted under the
President's Re-employment Agreement, in addition to improved busi-
ness, has increased the number of employees 46 percent since June
1933 when the hours averaged 46 per week.
After the application of the President's Re-employment Agree-
ment, the number of employees in the Industry increased to 13,700 in
August, or an increase of about 39 percent since June and 95 percent
since March 1933. In September the addition of 800 employees
brought the total to nearly 90 percent of the 1929 level.
The average wage rate for female employees in August 1933 was
about 28 cents; so that the minimum rate of 35 cents for female
labor prescribed by the Code is higher than the old average and
well above the previous minimum.
The automobile industry is the largest user of anti-friction bear-
ings. The bearings are also used in electric motors, machine tools,
bicycles, and for many other devices. In 1929 the total sales
amounted to $107,767,000. By 1932 sales had declined to $25,984,000,
or 76 percent. The ratio of sales to capacity in 1929 was approxi-
mately 98 percent; and in 1932 this ratio had declined to 26 percent.
At present there are 26 concerns in the Industry.
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
Anti-Friction Bearing 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,
CODE OF FAIR COMPETITION
ANTI-FRICTION BEARING INDUSTRY
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Anti-Friction Bearing Industry, and shall
be binding on every member thereof.
The following words are used in this Code with the meanings
set forth below:
The term the Industry" as used herein shall mean and include
the manufacturing or the sale by manufacturers or by directly owned
or controlled selling affiliates of manufacturers of anti-friction bear-
ings of the ball or roller type or any of their several parts such as:
races, balls, rollers, needle rollers, separators, or other parts included
in the assembly of an anti-friction bearing as an integral part
The term employee as used herein includes any person engaged
in any phase of the Industry in any capacity in the nature of em-
ployee, irrespective of the nature or method of payment of his
The term "employer" as used herein includes anyone by whom
such an employee is compensated or employed.
The term member of the Industry includes any individual, firm,
association, or corporation, or other person operating a plant or
plants in the United States for the production of anti-friction bear-
ings of the ball or roller type of any of their several parts, such as:
races, balls, rollers, needle rollers, separators, or other parts in-
cluded in the assembly of an anti-friction bearing as an integral part
The term member of the Code" includes any member of the
Industry who shall signify assent to this Code.
The term "effective date" as used herein means the tenth day
after this Code shall have been approved by the President of the
The term apprentice" as used herein means a person (usually 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 "Act" means Title I of the National Industrial Recovery
The term President" means the President of the United States.
The term "Administrator" means the National Industrial Recov-
The term "Administration" means the National Industrial Re-
The term "Association means the Anti-Friction Bearing Manu-
facturers' Association, a trade association having its office at the
Hotel Biltmore, 43d Street and Madison Avenue, New York, New
The term "Board of Directors" means the Board of Directors of
Population for the purposes of this Code shall be determined by
reference to the 1930 Federal Census.
On and after the effective date of this Code:
(a) Factory employees, mechanical workers or artisans in the
Industry, except as hereinafter provided, shall not be employed in
excess of forty (40) hours per week, nor more than eight hours in
any 24-hour period; provided, however, that during any period
in which a concentrated demand upon any division of the Industry
shall place an unusual and temporary burden for production upon
its facilities, an employee of such division may be permitted to work
not more than forty-eight (48) hours per week in not more than
six (6) weeks of any six months period; provided that such employee
shall be paid one and a half (112) times his normal rate of pay for
any time worked in excess of eight (8) hours in any 24-hour period
or of forty (40) hours in any seven (7) days.
There shall be a tolerance of ten percent (10%) additional hours
over forty (40) hours per week or 8 hours in any twenty-four (24)
hour period for employees engaged in the preparation, care, and
maintenance of plant, machinery and production facilities; stock
and shipping clerks; and delivery employees.
The maximum hours fixed in the foregoing section shall not apply
to any employee on emergency maintenance or emergency repair
work involving breakdowns or protection of life or property, but
in any such special cases one and one half times the normal rate
shall be paid for hours worked in excess of the normal hours herein
(b) The limitation as to hours of labor shall not apply to watch-
men, service men, commercial travelling salesmen, or to persons in
a managerial, executive or supervisory capacity who now receive
thirty-five ($35) dollars or more per week, provided, however, that
watchmen shall not work in excess of fifty-six (56) hours in any one
(c) No employer shall work any accounting, clerical, service, or
sales employee more than forty (40) hours per week on a one month
average, nor more than forty-eight (48) hours in any one week.
(d) No employee shall work or knowingly be permitted to work
for a total number of hours in excess of the number of hours pre-
scribed for each week and day, whether employed by one or more
On and after the effective date of this Code:
(a) The minimum wage that shall be paid factory employees in
this Industry shall be forty (40) cents per hour; except that for light
repetitive work and such other light factory work as does not usually
require the strength and skill of adult male labor (provided that no
adult male labor shall be used for such work except at the rate above
provided), the minimum rate shall be thirty-five (35) cents per hour.
(b) No distinction in rates stipulated in this Article IV shall be
made between male and female employees where the same class of
work is performed, regardless of whether compensation is calcu-
lated on an hourly, weekly, monthly, or piecework basis; but in no
case shall the rate for adult male labor be less than forty (40) cents
per hour. In any operation where female employees displace adult
male employees such female employees shall receive at least the same
rate as the adult male employees they displace.
(c) All employees mentioned in paragraph (c) of Article III
shall be paid at the following rates in cities of the sizes listed below
and their immediate trade areas: Over 500,000 population, not less
than $15 per week; between 250,000 and 500,000 population, not less
than $14.50 per week; under 250,000 population, not less than $14.00
(d) No employees of the classes mentioned in paragraph (c) of
Article III now receiving compensation at a rate in excess of the
minimum provided in paragraph (c) of this Article IV shall have
their compensation reduced on account of any reduction in the weekly
hours of employment made to conform with the requirements of
paragraph (c) of Article III.
(e) This Article IV establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piecework, or other basis, and in no case
shall the rates of pay provided herein be decreased.
(f) A person whose earning capacity is limited because of age or
physical handicap may be employed on light work at a wage below
the minimum established 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
(g) The provisions in paragraphs (a) and (c) of this Article IV
relating to rates of wages shall not apply to apprentices, office boys
and girls, messengers, or to old or partially disabled employees, not
exceeding five percent (5%) in number of the employees of any
(h) The minimum wage that shall be paid to office boys and girls,
messengers, or to old or partially disabled employees by any member
of this Industry shall be not less than 80% of the minimum wage
stipulated in paragraph (c) of this Article IV.
(i) The wage rates for all operations and duties which are in
excess of the minimum, herein prescribed, shall be equitably adjusted
and in no case shall they be decreased. The action taken shall be
reported to the Code Authority not later than sixty (60) days after
this effective date and to the Administrator at his request.
(j) In determining his classification under this Code, each em-
ployee shall be entitled to claim the benefit of the classification of
occupation existing on June 16, 1933.
(c) Nothing in this Article IV shall apply to or affect any em-
ployee apprenticed to any employer by an indenture made in pursu-
ance of the laws of any State of the United States, or by a written
contract under any apprentice system established and maintained by
any employer, provided that such contract is filed with the Code
Authority, and subject to review by the Administrator.
ARTICLE V-CHILD LABOR
No person under sixteen (16) years of age shall be employed in
the Industry. No person under eighteen (18) years of age shall be
employed at operations or occupations which are hazardous in nature
or dangerous to health. In any State an employer shall be deemed
to have complied with this provision as to age if he shall have on
file a certificate or permit duly issued by the Authority in such State
empowered to issue employment or age certificates or permits show-
ing that the employee is of the required age.
1. To further effectuate the policies of the Act, a Code Authority
is hereby set up to cooperate with the Administrator in the admin-
istration of this Code.
(a) The Code Authority shall consist of six members of the As-
sociation (no two of whom shall represent the same manufacturer),
appointed by the Board of Directors of the Association; and 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). In addition to the members of the Code
Authority appointed by members of the Industry, the Administrator
may appoint not more than three representatives of the Government.
Such Government Representatives are to be appointed for terms of
from six (6) months to one (1) year and if more than one (1) such
representative is appointed, their terms shall be so arranged that
they will not expire at the same time. The Board of Directors may
change its appointees from time to time as it may desire, and shall
advise the Administrator of any such changes. The appointee or
appointees of the Administrator shall act in an advisory capacity
only, and shall have no vote. The representative of the nonmembers
shall be elected by the nonmembers in any fair manner approved
by the Administrator.
(b) The Association shall impose no inequitable restrictions on
membership, and shall submit to the Administrator true copies of its
articles of association, and bylaws or regulations, and any amend-
ments when made thereto, together with such other information as
to membership, organization, and activities as the Administrator may
deem necessary to effectuate the purposes of the Act.
(c) 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 such hearings
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.
(d) Any member of the Industry is eligible for membership in
the Code, and there shall' be no inequitable restrictions on such mem-
bership. Any such member may participate in the preparation of
and any revision or additions or supplements to this Code by assum-
ing his pro rata share of the cost and responsibility of administering
it, either by becoming a member of the Association and paying the
annual dues and assessments of the Association, or by paying to the
Code Authority his pro rata share of the costs of administering
2. The Code Authority shall have the following duties and powers
to the extent permitted by the Act and subject to review and dis-
approval or modification by the Administrator.
(a) To collect from members of the Industry, directly or through
an impartial agency, 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; also to
collect and furnish to government agencies such statistical informa-
tion as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act. All such information shall be
confidential, except insofar as disclosure may be necessary for the
effective administration and enforcement of this Code. Such data
as may be requested by the Administrator shall be made available
to him. Reports submitted by the Code Authority to the President
or the Administrator shall be in the forIn prescribed or provided by
the President or the Administrator. Nothing in this subdivision
shall be considered as limiting the powers conferred on the President
or the Administrator by Title I of the Act.
(b) 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.
(c) 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 National Industrial Recovery Act and any regula-
tions issued thereunder.
(d) To hear complaints and attempt to adjust the same.
(e) 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 har-
monious action on all matters of common interest, all with approval
of the Administrator.
(f) To study the trade practice provisions of Article VII hereof,
and the operation thereof, and make recommendations from time
to time to the Administrator which it deems desirable for modifica-
tion or addition thereto, which, upon the approval of the Admin-
istrator, after such hearing as he may prescribe, shall become a part
of this Code and have full force and effect as provisions hereof.
(g) 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.
(A) 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
ARTICLE VII-UNFAIR PRACTICES
For the purpose of the Code, the following shall constitute unfair
(a) The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other misrepresentations with the tendency
and capacity to mislead and deceive purchasers or prospective
(b) Enticing away the employees of competitors with the purpose
and effect of unduly hampering, injuring, or embarrassing com-
petitors in their business. Nothing in this paragraph will prevent
any employee from offering his services to a competitor or prevent
any employer from employing an employee of another member of
the Industry when the initiative of such change of employment is
taken by the employee.
(c) Paying or allowing to any purchaser in connection with the
sale of any product any secret rebate, commission, credit, discount,
adjustment, or similar concession, other than as specified in the
contract of sale.
(d) False disparagement of the weight, substance, strength. grade,
or quality of the goods of competitors, with the tendency and capacity
to mislead or deceive purchasers or prospective purchasers.
(e) To sell any product at a price or upon such terms or con-
ditions as will result in the customer paying for the goods received
less than cost, arrived at by a uniform system of accounting, or
uniform accounting formulas established or adopted by the Code
Authority to become effective not less than thirty (30) days after
adoption by the Code Authority. The Code Authority shall study
the operation of such system of accounting or accounting formulas
and may from time to time make such modifications therein as it
may deem necessary.
Any action taken by the Code Authority under this siubsection
(e) shall be subject to review and disapproval by the Adminis-
(f) Selling or offering to sell any product with intent to deceive
purchasers or prospective purchasers as to the quantity, quality,
grade or substance of such product.
(g) Making or promising to any purchaser or prospective pur-
chaser of any product, or to any officer, employee, agent, or repre-
sentative of any such purchaser or prospective purchaser, any bribe,
gratuity, or other payment or remuneration, directly or indirectly,
for the purpose of influencing a sale.
(h) Any additional practices which shall be declared to be unfair
by an amendment to the Code.
(i) Using or employing any unfair practice hereinbefore specified
shall be deemed to be a violation of the Code, and any member of
the Industry who shall directly or indirectly, through any officer,
employee, agent, or representative, knowingly use or employ any
of such unfair practices, shall be guilty of a violation of the Code.
ARTICLE VIII-GENERAL PROVISIONS
(a) Employees shall have the right to organize and bargain col-
lectively 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) No employees and no one seeking employment shall be re-
quired 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.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
(d) All employers shall post complete copies of this Code in con-
spicuous places accessible to employees.
(e) This Code and all the provisions hereof are expressly made
subject to the right of the President, in accordance with the pro-
vision of subsection (b) of Section 10 of the National Industrial
Recovery Act from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of said Act
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval thereof.
(f) Within each State this Code shall not supersede any laws of
such State imposing more stringent requirements on employers regu-
lating the age of employees, wages, hours of work, or general work-
ing conditions than under this Code.
(g) 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 as changes
in circumstances or experience may indicate. It is contemplated that
from time to time supplementary provisions to this Code or addi-
tional Codes may be submitted for the approval of the President to
prevent unfair competition in price and other unfair and destruc-
tive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act consist-
ent with the provisions thereof.
(h) No provision in this Code shall be interpreted or applied in
such manner as to: (a) promote monopolies or monopolistic prac-
tices; (b) permit or encourage unfair competition; (c) eliminate
or oppress small enterprises; or (d) discriminate against small
(i) Nothing contained in this Code shall be deemed to constitute
the members of this Code partners for any purpose. None of the
members of the Code shall be liable in any manner to anyone for any
act of any other member of the Code, or for any act of the Code
Authority, the Association, the Board of Directors, or of any com-
mittee, or of any officer or employee appointed under the Code.
None of the members of the Code Authority or of the Association or
of any committee appointees under the Code shall be liable to anyone
for any action or omission to act under the Code, except for his own
wilful misfeasance or nonfeasance.
(j) If any member of this Industry is also a member of any other
Industry, the provisions of this Code shall apply to and affect only
that part of the business of such member as is a part of the Industry
covered by this Code.
(k) This Code shall be in effect beginning on the tenth day after
its approval by the President and shall be bmding upon all members
of the Industry.
Approved Code No. 188.
Registry No. 1318-1-02.
UNIVERSITY OF FLORIDA
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