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Approved Code No. 385
Approved Code No. 385
Registry No. 1502-1-01
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
RAILROAD SPECIAL TRACK
AS APPROVED ON APRIL 6, 1934
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Approved Code No. 385
CODE OF FAIR COMPETITION
RAILROAD SPECIAL TRACK EQUIPMENT
As Approved on April 6, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE RAILROAD SPECIAL TRACK
EQUIPMENT 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 approval of a Code of
Fair Competition for the RailroaA Special Track Equipment Manu-
facturing Industry, and hearings having been duly held thereon and
the annexed report on said Code, 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
President, 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 purposes
of said Title of said Act; and do hereby order that said Code of
Fair Competition be and it is hereby approved subject to the follow-
ing conditions: that the provisions of Article VII, Section 2, insofar
as they prescribe a waiting period between the filing with the Secre-
tary or Assistant Secretary of the Code Authority (i.e. actual re-
ceipt by the Code Authority) and the effective date of revised price
lists or revised terms and conditions of sale and payment, be and
they are hereby stayed pending my further order either within a
period of sixty (60) days from the effective date of this Code, or
after the completion of a study of open price associations now being
conducted by the National Recovery Administration.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
A. R. GLANCY,
Division A dim inl'trator.
April 6, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the
Railroad Special Track Equipment Manufacturing Industry as re-
vised after the Public Hearing conducted thereon in Washington,
D.C., on December 29, 1933 in accordance with the provisions of the
National Industrial Recovery Act.
PROVISIONS AS TO HOURS AND WAGES
The Code provides for a normal maximum forty (40) hour week
of six (6) days and an eight (8) hour day except as hereinafter
Executives, those employed in a supervisory capacity or in engi-
neering or laboratory work, individually receiving pay at the rate
of Thirty-Five Dollars ($35.00) or more per week and outside sales-
men are exempted from the hour provisions.
Watchmen may work fifty-six (56) hours during a work week of
six (6) days.
Firemen and power plant engineers may be employed forty-four
(44) hours during a work week of six (6) days.
Repair men, maintenance men and shipping clerks may be em-
ployed forty-four (44) hours during a work week of six (6) days
provided one and one-half (11/) times the normal rate of pay is
paid for overtime.
Office employees may be employed forty-eight (48) hours in any
one week in any one calendar month.
During any six (6) weeks in any six (6) months' period beginning
January 1 and July 1 of each year, any factory employee may be per-
mitted to work up to forty-eight (48) hours per week provided one
and one-half (1/2) times his regular rate of pay is paid for overtime.
These maximum hours shall not apply to any employee on emer-
gency maintenance or emergency repair work involving breakdowns
or protection of life or property or on emergencies occasioned by the
necessity for the services of certain specially skilled employees which
cannot be taken care of by the employment of additional men pro-
vided one and one-half (12) times the normal rate shall be paid
Provision is made for one day of rest in seven and the standard
clause regarding employment by several employers is incorporated
in the code.
The standard minimum wage rate is forty (40) cents per hour in
the North and thirty-two (32) cents in the States of South Carolina,
Alabama, Mississippi, Louisiana and Tennessee.
Office employees shall receive a minimum of $15.00 per week pro-
vided that office boys and girls may be paid not less than eighty (80)
per cent of this minimum and shall constitute not more than five (5)
per cent of the clerical and office employees.
Employers shall make equitable adjustments for all employees
receiving more than the minima and the Code Authority will report
all such adjustments to the Administrator.
The minimum rate shall apply to all employees irrespective of
whether they are actually compensated on a time rate, piece work or
No person under sixteen (16) years of age shall be employed in
the Industry, nor shall any one under eighteen (18) be employed
in the manufacture, repair and/or handling of the products of the
The Railroad Special Track Equipment Industry is a capital goods
industry and comprises the manufacture and sale of special Tee-Rail
track work of carbon steel and other metals for use in railroad track
made with standard rails of sixty pounds per yard and heavier.
There are approximately twenty concerns in the Industry operating
more than twenty-seven plants. The Industry has been seriously
affected by the depression as its prosperity is in direct ratio to the
purchasing power of the railroads. Available statistics show a total
production for eighteen concerns in the Industry in 1928 of $18,000,000
and for fifteen concerns in 1933 of $1,400,000, a decrease of 92.2%.
In 1933, the Industry employed 1,621 persons, a decrease of 51.7%
No female factory workers are employed in this Industry.
Payrolls of seventeen concerns in 1929 amounted to $4,720,368 and
$1,046,500 in 1933, a decrease of about 78%.
Average hours per man per week for factory workers declined
from 51.5 hours in 1929 to 25.3 hours in June 1933, a decrease of
50.8% and the average hourly rate for factory wage earners declined
25.7% in that time.
The adoption of the President's Reemployment Agreement in-
creased factory employment 14.1% between June 1933 and October of
the same year; factory payrolls increased 56.2% and office payrolls
9.3%. Average hours per man per week showed an improvement of
20.9%; the average hourly rates for factory wage earners increased
14% and their average weekly earnings showed an improvement of
36.5%. The proposed wage provisions will substantially increase
payrolls but the hour provisions will not materially increase employ-
ment over the President's Reemployment Agreement results. Reem-
ployment in the Industry can only be accomplished by a substantial
increase in the demand for its products. The immediate prospect of
the inflow of Public Works Administration funds will favorably
affect this Industry.
The Assistant. Deputy Administrator in his final report to me on
said Code having found as herein set forth and on the basis of all
the proceedings 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 ann] maintaining united action of labor and manage-
ment under adequate governmental sanctions 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) 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 Indus-
try; and that said group imposes no inequitable restrictions on ad-
mission to membership therein.
(d) The Code is not designed to and will not permit monopolies or
(e) The Code is not designed to and will not eliminate or oppress
small viiterprises 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 subject to
the following conditions: that the provisions of Article VII, Section
2, insofar as they prescribe a waiting period between the filing with
the Secretary or Assistant Secretary of the Code Authority (i.e.
actual receipt by the Code Authority) and the effective date of re-
vised price lists or revised terms and conditions of sale and payment,
be and they are hereby stayed pending my further order either within
a period of sixty (60) days from the effective date of this Code, or
after the completion of a study of open price associations now being
conducted by the National Recovery Administration.
HUGH S. JOHNSON,
A dmn inistrator.
APRIL 6, 1934.
CODE OF FAIR COMPETITION FOR THE RAILROAD
SPECIAL TRACK EQUIPMENT MANUFACTURING
To effect the policies of Title I of the National Industrial Recovery
Act, this Code is established as a Code of Fair Competition for the
Railroad Special Track Equipment Manufacturing Industry; its
provisions shall be the standards of fair competition for such
Industry and shall be binding upon every member thereof.
SECTION 1. The terms President ", "Act" and "Administrator"
as used herein shall mean respectively the President of the United
States, the National Industrial Recovery Act and the Administrator
for Industrial Recovery under Title I of said Act.
SECTION 2. The term "Railroad Special Track Equipment Manu-
facturing Industry as used herein means and includes the manufac-
ture and sale of all special Tee Rail track work of carbon steel,
manganese steel and/or other metals for use in railroad track made
with standard tee rails of sixty pounds per yard and heavier. It
includes all switches, switch points, switch stands, ground throws,
frogs, crossings, stock and special connecting rails, guard rails, guard
rail clamps, bridge rails, and expansion joints and repairs made and
all parts furnished for above items. It shall not include electrical
apparatus for operating any special track equipment, compromise
joints, tie plates, rail braces, gauge rods, except when furnished in
connection with the above specified items, rail except when sold in
connection with the above items and on which additional work other
than drilling is performed.
SECTION 3. The term "member of the Industry" means and in-
cludes but without limitation, any individual, partnership, associa-
tion, corporation or other form of enterprise engaged in the Industry
either as an employer or on his or its behalf.
SECTION 4. The term employee as used herein includes any and
all persons engaged in the Industry, however compensated, except a
member of the Industry.
SECTION 5. The term "employer as used herein, includes anyone
by whom any such employee is compensated or employed.
SECTION 6. The term "'publish means to make available to the
SECTION 1. Maximum Hours.-No employee shall be permitted to
work in excess of forty (40) hours in any one week or eight (8)
hours in any twenty-four (24) hour period beginning at midnight,
except, as herein otherwise provided, nor more than six (6) days per
SECTION 2. Exceptions as to Hour.-'-(a) Erccu.lfes, etc.-Tlhe
provisions of section 1 above shall not apply to executives, those
employed in a supervisory capacity or in engineering, or laboratory
work, individually receiving pay at the rate of thirty-five (35)
dollars or more per week and outside salesmen.
(b) lVatchmen .-Watchmen may not be employed in excess of
fifty-six (56) hours per week.
(c) Firemen and Power-Plant Engineers.-Firemen and power-
plant enginlcers may not be employed in excess of forty-four (44)
hours per week.
(d) Repair men, etc.-Repair men, maintenance men, and ship-
ping clerks may be employed up to forty-four (44) hours per week,
provided at least one and one-half times their regular rate of pay
shall be paid for time worked in excess of forty (40) hours in any
one week or eight (8) hours in any twenty-four (24) hour period.
(e) O~ce Employees.-Office employees may be employed up to
forty-eight (48) hours in any one week in any one calendar month.
(f) Ordiary Overtime for Seasonal Periods.-During any six
(6) weeks in any six (6) months' period beginning January 1 and
July 1 of each year any factory employee may be employed up tq
forty-eight (48) hours per week provided at least one and one-half
times such employee's regular rate of pay shall be paid for hours
worked in excess of forty (40) hours in any one week or eight (8)
hours in any twenty-four (24) hour period.
(g) Emergency Overtime.-The maximum hours fixed in section 1
above shall not apply to any employee on emergency maintenance or
emergency repair work involving breakdowns or protection of life
or property, or on emergencies occasioned by the necessity for the
services of certain specially skilled employees which cannot be taken
care of by the employment of additional men, but in any such special
case at least one and one-half times such employee's regular rate of
pay shall be paid for hours worked in excess of forty (40) hours in
any one week or eight (8) hours in any twenty-four (24) hour
SECTION 3. No employer shall knowingly permit any employee
to work for any time which when totalled with that already per-
formed for any other employer or employers exceeds the maximum
hours permitted herein.
SECTION 1. No employee shall be paid less than at the rate of
forty (40) cents per hour, except as hereinafter provided.
SECTION 2. No employee shall be paid less than 32 cents per hour
in the following states: South Carolina, Alabama, Mississippi,
Louisiana and Tennessee.
SECTION 3. The minimum wage that shall be paid by any employer
to office employees, except oi(,t:de salesmen, shall be at the rate of
fifteen (15) dollars per week.
SECTION 4. Office boys and girls shall be paid not less than eighty
(80) per cent of the minimum rate established in Section 3 above.
The total number of office boys and girls receiving less than the
minimum rate shall not exceed five per cent of the total number of
employees engaged in clerical or office work.
SECTION 5. The rates of pay of all hourly employees covered by
Section 1 and of the employees covered by Sections 2, 3 and 4 hereof
receiving more than the minimum rate as herein provided but less
than at the rate of thirty-five ($35.00) dollars per week which have
not subsequent to June 16, 1933, been equitably adjusted, shall be
so adjusted not later than fifteen (15) days subsequent to the effec-
tive date of this Code, provided, however, that in no event, shall
rates of pay of such employees be reduced. Not later than sixty (60)
days after the effective date of this Code the Code Authority shall
report to the Administrator the action taken by all employers in
the Industry since May 1, 1933 in making such adjustments.
SECTION 6. This Article establishes a minimum compensation, irre-
spective of whether an employee is actually compensated on a time
rate, piece-work, or other basis.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. No person under sixteen (16) years of age shall be
employed in the Industry and no person under eighteen(18) years
of age shall be employed in an employer's plant in the Industry in
the manufacture, repair and/or handling of the products of the
Industry. In any State an employer shall be deemed to have com-
plied with this provision as to age if he shall have on file a certifi-
cate or permit duly signed by the Authority in such State
empowered to issue employment or age certificates or permit
showing that the employee is of the required age.
SECTION 2. Pursuant to Section 7 (a) of Title I of the Act, the
Code shall be subject to the following conditions:
"(a) That employees shall have the right to organize and bar-
gain collective through representatives of their own choosing and
shall be free from the interference, restraint or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives or in self-organization, or in other concerted activities
for the purpose of collective bargaining or other mutual aid or
"(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
organization of his own choosing; and
"(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."
SECTION 3. Employers shall not reclassify employees or duties
of occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes of this Code or of the Act.
SECTION 4. Every employer shall make reasonable provisions for
the safety and health of his employees at the place and during the
hours of their employment. Standards for safety and health shall
be submitted by the Code Authority to the Administrator for ap-
proval within six months after the effective date of this Code.
SECTION 5. Within each State the Code shall not supersede any
laws of such State imposing more stringent requirements on em-
ployers, regulating age of employees, wages, and hours of work or
general working conditions than are provided under this Code.
SECTION 6. All employers shall post complete copies of this Code
in conspicuous places accessible to all employees.
ARTICLE VI-ADMINISTRATION OF THE CODE
SECTION 1. There shall be forthwith established a Code Authority
of one representative from each member of the Industry complying
with the requirements of this Code and sustaining its reasonable
share of the expense of its administration. Each member of the Code
Authority shall have as many votes as the member of the Industry
represented by him is entitled to pursuant to the provision of Sec-
tion 4 of this Article. In addition the Administrator may appoint
not to exceed three members of the Code Authority without vote.
The members who may be appointed by the Administrator, together
with the Administrator, shall be given notice and may sit at all
meetings of the Code Authority.
SECTION 2. Members of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof by complying
with the requirements of this Code and sustaining their reasonable
share of the expense of its administration. Such reasonable share
of the expense which shall be assessed by the Code Authority shall
bear the same relation to the total thereof as the number of votes
pursuant to the provisions of this Code at the time of any such
assessment shall bear to the total number of votes that might be cast.
Failure of any assenting member to pay the amount of any assessment
against such member for a period of thirty days after the date on
which it became payable shall prohibit such member from partici-
pating in the activities of the Code Authority.
SECTION 3. The Code Authority may from time to time appoint
such committees and/or agents as it shall deem necessary or proper
in order to effectuate the purpose of the Code, and it may delegate
to any such committee and/or agent generally or in particular
instances such of the powers and duties of the Code Authority
under the Code as it shall deem necessary or proper in order to
effectuate such purpose but nothing in this section shall relieve the
Code Authority from the responsibilities imposed upon it by the
SECTION 4. At each meeting of the members entitled to vote each
member thereof shall have as many votes as shall equal the quotient
obtained by dividing by 500 the aggregate amount in net tons of
products shipped by said member for consumption in the United
States during the preceding calendar year. Fractions in such quo-
tients shall be disregarded; provided, however, that each member
shall have at least one vote. All questions as to the number of votes
which each member shall be entitled to cast at any meeting of the
members thereof shall be determined by the Code Authority. Any
member of the Industry who shall be entitled to vote at meetings
of the members may vote by proxy in writing, duly executed by said
member, and filed with the Code Authority. Any such proxy may
be for a specified meeting or be a general proxy for any or all
meetings that may be held until such proxy shall have been revoked
by an instrument in writing duly executed by the member which
gave such proxy and file with the Code Authority.
SECTION 5. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code Author-
ity shall (1) impose no inequitable restrictions on admii-ion to
membership, and (2) submit to the Administrator true copies of its
articles of association, by-laws, regulations, and any amendments
when made thereto, together with such other information as to
membership or organization, as the Administrator may deem neces-
say to effectuate the purposes of the Act.
SECTION 6. 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 prescribe
such hearings as he may deem proper; and thereafter if he shall find
that the Code Authority is not truly representative, may require an
appropriate modification in the method of selection of the Code
SECTION 7. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contrary to the public interest, the Administrator may require
that such action be suspended to afford an opportunity for investi-
gation of the merits of such action and further consideration by
such Code Authority or agency pending final action which shall not
be effective unless the Administrator approves or unless he shall fail
to disapprove after thirty days' notice to him of intention to proceed
with such action in its original or modified form.
SECTION 8. The Code Authority shall have the following further
powers and duties:
(a) To use its best efforts to insure the execution of the provisions
of this Code and provide for the compliance of the Industry with
the provisions of the Act.
(b) To adopt bylaws and rules and regulations for its procedure
and for the administration of the Code.
(c) To obtain from members of the Industry through an impartial
agency such information and reports as are required for the adminis-
tration of the Code and to provide for submission by members of
such information and reports as may be necessary for the purposes
recited in Section 3 (a) of the Act; which information and reports
shall be submitted to the Administrator and/or such Government
agencies as the Administrator may designate provided that nothing
in this Code shall relieve any member of the Industry of existing
obligations to furnish reports to any Government agency. All sta-
tistics, data and information filed pursuant to the provisions of the
Code, shall be deemed confidential and shall not be disclosed to any
member of the Industry in other than composite form, unless dis-
closure in detail shall be deemed to be essential in order to effectuate
the policies of Title I of the Act.
(d) To take such action as may be available to it to secure from
members of the Industry an equitable and proportionate payment of
the reasonable expenses of maintaining the Code Authority and its
activities subject to review by the Administrator.
(e) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry who
are complying with this Code.
(f) The Code Authority shall be deemed to have discharged its
full duty under the Code with respect to any violation or alleged
violation of the Code when it shall have exercised such powers as
are at the time legally conferred upon it and in the event of its
inability to legally enforce compliance with the provisions of the
Code shall have certified the facts available to it with respect to
such violation or alleged violation to the Administrator or other
appropriate Governmental Authority.
ARTICLE VII-TRADE PRACTICES
SECTION 1. Wherever used in the Code the terms hereinafter in
this Section 1 defined shall, unless the context shall otherwise clearly
indicate have the respective meanings hereinafter set forth. The
definition of any such term in the singular shall apply to the use
of such term in the plural and vice versa.
(a) The term period of free credit" means the period of time
between the date of a shipment of a product to the purchaser of
such product and the date from and after which such purchaser
shall be required to pay interest on the purchase price of such
product or any part thereof which shall not have been paid prior to
the expiration of such period.
(b) The term "date of invoice means the date of the invoice of
(c) The term discount for early payment means the amount of
the deduction allowed for the payment of an invoice of products
before the expiration of the period of free credit in respect thereof.
SECTION 2. Each member of the Industry shall within ten (10)
days after written request by the Code Authority, and subject to
the provisions of Section 4 hereof, publish and file with the Secre-
tary or Assistant Secretary of the Code Authority a schedule of its
prices applying to acknowledged standard frogs, switches, standard
parts thereof and appurtenances. From and after the expiration of
such ten (10) days, each member shall publish and at all times main-
tain on file with the Secretary or Assistant Secretary of the Code
Authority a list showing selling prices for such standards and shall
not make any change in such prices except by the publishing and
filing by such member with the Secretary or Assistant Secretary of
the Code Authority of a new list of such prices, which new list after
filing shall become effective in seven (7) days but not prior thereto.
The prices so filed shall be f.o.b. such member's plant or plants, and
except to meet existing competition shall be not less than the cost
of such product to such member determined by a method to be estab-
lished by the Code Authority and approved by the Administrator.
All prices so filed shall be published.1
SECTION 3. No product designated in any member's list of prices
so filed shall be sold by such member of the Industry to any
(a) at a price f.o.b. any of its plants other than the applicable
price filed by such member at said plant, or
(b) at a price f.o.b. point of delivery to the purchaser other than
such member's filed price with carrying charges at published tariff
rates added; provided, however
(c) That selling below such prices filed by such member to meet
competition by a competitor whose prices do not violate this Code
1 See Paragraph 2 of order approving this Code.
on such designated products on which such member or any member
has filed prices (i.e., selling at a price below such filed prices which
will give the purchaser the same net price as that provided by the
price of any other member of the Industry, taking into consideration
any advantages accruing to the purchaser on account of its partici-
pation in transportation charges) shall not constitute a violation of
SECTION 4. The Code Authority subject to the disapproval of the
Administrator shall determine what are acknowledged standard
frogs, switches, standard parts thereof and appurtenances pur-
chased or being considered by two or more purchasers within the
contemplation of Section 2 of this Article on which prices shall
SECTION 5. Products of the Industry that are not determined as
standard by the Code Authority subject to the disapproval of the
Administrator are to be regarded as special" and be subject. to
the following conditions: No member of the Industry will sell
any special product to any purchaser (a) at a price f.o.b. any of
its plants less than the cost of such product, determined by a method
to be established by the Code Authority subject to the approval of
the Administrator to such member at said plant, or (b) at a price
f.o.b. point of delivery to the purchaser less than the said cost of
such product to such member with carrying charges at published
tariff rates added; provided, however (c) that selling below cost
to meet existing competition in price by a competitor whose prices
do not violate this Code on products of equivalent specifications
shall not constitute a violation of the Code; and, provided (d) that
selling below cost in order to dispose of any obsolete items or mate-
rials shall not be deemed a violation of the Code.
SECTION 6. Whenever any member of the Industry shall file with
the Code Authority a written complaint alleging that any other
member of the Industry has made a sale of a product at a price
which constitutes a violation of the Code and the Code Authority
shall declare by a vote of three-fourths of all of its members entitled
to vote that said complaint appears to be justified the Code Author-
ity shall have power to investigate the price at which said sale shall
have been made. No member of the Code Authority shall vote upon
any question involving a violation of the Code by the member of
the industry represented by such member.
SECTION 7. For all the purposes of these sections 1 to 7 a delivery
of any product made pursuant to a contract of sale shall be regarded
as a sale thereof made at the time of the making of such contract
and a sale made by any member of the Industry indirectly through
any affiliated company of such member shall be deemed to be a sale
made by such member.
ARTICLE VIII-UNFAIR PRACTICES
The following described acts shall constitute unfair practices and
any member of the Industry who shall directly or indirectly through
any officer, employee or agent or representative, knowingly use or
employ any such unfair trade practice shall be guilty of a violation
of the Code.
(a) Giving, permitting to be given, or directly offering to give,
anything of value for the purpose of influencing or rewarding the
action of any employee, agent or representative of another in relation
to the business of the employer of such employee, the principal of
such agent or the represented party, without the knowledge of such
employer, principal or party. This provision shall not be construed
to prohibit free and general distribution of articles commonly used
for advertising except so far as such articles are actually used for
commercial bribery as hereinabove defined.
(b) Procuring otherwise than with the consent of any member
of the Industry any information concerning the business of such
member which is properly regarded by it as a trade secret or confi-
dential within its organization, other than information relating to
the violation of any provisions of the Code.
(c) Using or substituting without adequate compensation any more
costly materials superior in quality to that specified by the purchaser
of any product or using or substituting any material or any method
of manufacture not in accord with any applicable law, rule or regula-
tion of any governmental authority.
(d) No member of the industry shall secretly directly offer or
make any payment or allowance of a rebate, refund, commission,
credit, unearned discount or excess allowance, whether in the form
of money or otherwise, nor shall a member of the industry secretly
offer or extend to any customer any special service or privilege not
extended to all customers of the same class, for the purpose of
influencing a sale.
(e) Publishing advertising (whether printed, radio, display or of
any other nature), which is misleading or inaccurate in any material
particular, or in any way misrepresenting any goods (including but
without limitation its use, trade-mark, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content or
preparation) or credit terms, values, policies, services, or the nature
or form of the business conducted.
(f) Attempting to induce the breaching of an existing contract
between a customer or source of supply; nor shall any such member
interfere with or obstruct the performance of such contractual duties
(g) Aiding or abetting any individual, firm, association, corpora-
tion or other form of enterprise in any unfair practices.
(h) Making or giving to any purchaser of any product any
guarantee or protection in any form against decline in the market
price of such product.
(i) Knowingly withholding from or inserting in any quotation or
invoice any statement that makes it inaccurate in any material
(j) Branding or marking or packaging any goods in any manner
which is intended to or does deceive or mislead purchasers with
respect to the brand, grade, quality, quantity, origin, size, substance,
character, nature, finish, material content or preparation of such
(k) Rendering to any purchaser of any product in or in connec-
tion with the sale of such product any unusual service, unless fair
compensation shall be paid by such purchaser.
(1) Failing to invoice products manufactured pursuant to order
or contract after such products have been held for thirty day. after
specified shipping date.
(m) Accepting an order for the products of the Industry without
a specified delivery date within twelve months from the date of order
except orders in connection with specific construction contracts ex-
tending beyond a period of twelve months from date of order.
(n) Shipping of goods on consignment, except under circum-
stances to be defined by the Code Authority, subject to approval
by the Administrator, where peculiar circumstances of the Industry
require the practice.
(o) Postdating and Predating.-Postdating or predating of quo-
tations, orders, invoices, statements, or other sales documents.
(p) The standard terms of credit and payment shall be as here-
inafter set forth, provided, however, that the Code Authority, sub-
ject to the disapproval of the Administrator, shall have power from
me to time to mt t odify, waive or supplement such standard terms of
credit and payment by regulations, a copy of which shall be filed
with the Secretary and mailed to each member of the Industry.
Except in the case of sales made to, or contracts of sale entered into
with government agencies, in respect of which such government
agencies shall impose other terms of credit and payment, no mem-
ber of the Industry shall allow more liberal terms of credit and pay-
ment than those at the time in effect under this Section and such
regulations. Except as aforesaid all invoices for products sold
by any member of the Industry after the effective date of the Code
shall bear interest from and -after the expiration of the period of
free credit at the rate of six per cent (6%) per annum.
Maximum Rates of Discount for Early Payment: In the case of
products shipped from plants located east of the Mi-sissippi River to
Pacific Coast Ports and which shall be invoiced from such plants-- .
of 1%, if the invoice of such products shall be paid within 25 days
from the date of such invoice; in all other cases-% 1of 1%, if the in-
voice of such products shall be paid within 10 days from the date of
such invoice; provided, however, in the latter cases that, any member
of the Industry may allow such discount of 1i of 1% for payment
within 10 days on the basis of settlements three times in each month,
(1) On invoices for products dated from the 1st to the 10th, in-
clusive, in any month, such discount may be allowed on payment
of such invoices on or before the 20th of such month;
(2) On invoices for products dated from the 11th to the 20th,
inclusive, in any month, such discount may be allowed on payment
of such invoices on or before the 30th of such month; and
(3) On invoices for products dated from the 21st to the end of
any month, such discount may be allowed dn payment of such in-
voices on or before the 10th of the next following month.
Any discount allowed in accordance with the provisions of this
Section shall apply only to the invoiced value of the products
specified therein and not to any part of the transportation charges
on such products.
Maximum Periods of Free Credit: In the case of products shipped
from plants located east of the Mississippi River to Pacific Coast
UNIVERSITY OF FLORIDA
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178 3 1262 08584 3059
po ts and which shall be invoiced from such plants-45 days; in
all other cases-30 days.
ARTICLE IX-EXPORT TRADE
SEOTION 1. No provision of this Code relating to prices or terms
of selling, shipping or marketing, shall apply to export trade or sales
or shipments for export trade.
SECTION 2. Subject to the approval of the Code Authority, the
exceptions established by this Article shall apply also to sales or
shipments of products of this Industry actually used and directly
traceable to manufacture for export trade.
ARTICLE X-AMENDMENTS--TERMI NATION
SECTION 1. The Code may be amended at any time in the manner
hereinafter provided. Amendments may be proposed by the Code
Authority by vote of a majority of the members thereof at the time
in office or other representative group of members of the Industry.
Amendments so proposed shall be submitted to a meeting of the
assenting members of the Industry which shall be called for such
purpose and be based upon application to the Administrator and
such notice as he may specify. If at such meeting members having
the right to cast at least 75% of all the votes that might be cast at
such meeting, if all the members were present threat, shall vote in
favor of the adoption of such amendment, such amendment shall be
submitted by the Code Authority to the Administrator. Every such
amendment shall take effect as a part of the Code upon the adoption
thereof by the said members of the Industry, as above provided, on
the approval thereof by the Administrator.
The Code shall continue in effect until June 16, 1935, or the earliest
date prior thereto on which the President shall by proclamation or
the Congress shall by Joint Resolution declare that the emergency
recognized in Title I of the National Industrial Recovery Xct is
SECTION 2. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or
regulation issued under said Act.
ARTICLE XI-GENERAL PROVISIONS
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices or to eliminate or oppress or
discriminate against small enterprises.
ARTICLE XII-EFFECTIVE DATE
This Code shall become effective on the date upon which the Code
is approved by the President, pursuant to the National Industrial
Approved Code No. 385.
Registry No. 1502-1-01.
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