Citation
Code of fair competition for the construction machinery distributing trade as approved on January 23, 1934

Material Information

Title:
Code of fair competition for the construction machinery distributing trade as approved on January 23, 1934
Portion of title:
Construction machinery distributing trade
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
p. 369-379 : ; 24 cm.

Subjects

Subjects / Keywords:
Construction equipment industry -- Law and legislation -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1399-17."
General Note:
"Approved Code No. 223."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004931493 ( ALEPH )
646188122 ( OCLC )

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NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION
FOR THE

CONSTRUCTION MACHINERY

DISTRIBUTING TRADE

AS APPROVED ON JANUARY 23, 1934


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents


UNI V. OF FL L'i.


UI .. D T7

U__O. y3PC^'T~ 'I


Approved Code No. 223


Registry No. 1399-17

























This publication ig for sale by the Supeiiriintendent of Documents, Governmelnt
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Buillding.
Boston, Mans.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Cliamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
('civelandl, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, MiD-h.: 801 Firs-,t Natioinnl Bank Buildiii;'.
Houston, Tex.: Chamber of Commerce Building.
Indinuarpolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Anigeleq. Calif.: 1163 South Broaldway.
Louisville, Ky.: 408 Federal Building.
Mcmnphis. Tenn.: 229 Federal Building.
Minneapolis. Minn.: 213 Federal Buildling.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Stieet.
Pjlil:i,-lplhia. Pa.: 422 Commercial Tiu-it Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.

























(Reprinted Code)
Approved Code No. 223 Registry No. 1399-17

ERRATA SHEET

CODE OF FAIR COMPETITION
FOR THE

CONSTRUCTION MACHINERY DISTRIBUTING
TRADE

As Approved on January 23, 1934

Article II, paragraph 2, line 10, insert the word "rents after the
word "sells ", so that the phrase reads as follows: "who warehouses,
sells, rents, or distributes construction machinery ".


.. S. GOVERNMENT PRINTING OFFICE: 194


101440-1385-42--34









































Digitized by the Internet Archive
in 2011 with funding from
University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation


http://www.archive.org/details/codeoffaircompet9199unit














Approved Code No. 223 Registry No. 1399-17

ERRATA SHEET

CODE OF FAIR COMPETITION

FOR THE

CONSTRUCTION MACHINERY DISTRIBUTING TRADE

As Approved on January 23, 1934

Article II, 2nd paragraph, 5th line, add the word rents" after
"sells."
Article VII, Section 2, 4th line, replace which by the word
" with."
Article VII, Section 3, 3rd and 4th lines, replace the words
"purchasers by the words customers."
Article VII, Section 4, 3rd line, replace the word sellers by the
word distributors."
Article VII, Section 6, delete everything starting with the \word
providede" in the 5th line to and including the words "such
machinery in the 10th line.


U. S. GOVERNMENT PRINTING OFFICE: 193S


105033--1385-137---35












Approved Code No. 223


CODE OF FAIR COMPETITION
FOR THE

CONSTRUCTION MACHINERY DISTRIBUTING
TRADE

As Approved on January 23, 1934





ORDER
APPROVING CODE OF FAIR COMPETITION
FOR THE

CONSTRUCTION MACHINERY DISTRIBUTING
TRADE

An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code
of Fair Competition for the Construction Machinery Distributing
Trade, and hearings having been duly hteh 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 Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said
annexed 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.
Approval Recommended:
MALCOLM MTUIR,
Division A dninistrafor.
WASHINGTON, D.C.,
January 23, 1934.
35367--313-112-34 (369)











The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the
Construction Machinery Distributing Trade in the Tnited States,
as revised after a Public Hearing, conducted in Washington on
October 9, 1933, in accordance with the provisions of the National
Industrial Recovery Act.

PROVISIONS FOR WAGES AND HOURS

A maximum work week of forty (40) hours, and not to exceed
eight (8) hours per day is adopted under the Code, with provision
for peak periods of forty-eight (48) hours per week for not more
than three (3) weeks of any six (6) months' period. Executives
receiving more than thirty-five (35) dollars per week and outside
salesmen are excepted from the schedule of nmaximum hours, while
outside service employees, those engaged in plant maintenance, and
stock room employees may work a maximum of forty-eight (48)
hours per week with payment of time and one-third for all hours
worked in excess of forty (40) hours per week. Watlchenl may not
work more than fifty-six (56) hours in any one (1) week, nor more
than six (6) days in any seven (7) day period.
The minimum wage for all hourly rated employees will be not
less than forty (40) cents per hour, except that learners may be paid
at the rate of not less than eighty (80) percent of this minimum wage
for the first six (6) months of their employment. The number of
such learners shall not exceed five (5) percent of the total employees.
Clerical employees will be paid at the rate of not less than fifteen
(15) dollars per week, while office boys will be paid at not less than
eighty (80) percent of this rate.
The Code has a provision for equitable adjustment of all pay
schedules in excess of the minimum provided.

CHILD I.ABOI

The minimum age of employees will be sixteen (16) years, except
in hazardous occupations, where the minimum is raised to eighteen
(18) years.
EI-:('Nl'MIIf EFFECT OF THIE 'OlDE

Tr,. forty (40) hour wI\'k stipiihited in the Code is a reduction
from a former average of fifty (50) hours, and the Tradel ctim nate
flat under the Code employlviit will be increased approximately
fifteen (15) percent.
fMinillum 1%ilg rate-s spe'cifi'ed represent an increase of approxi-
Im:it1y twelve (12) percent over the waigty prevailing before the
adopt iiO of the hourly schedulle called for in this Code.
The three hundred and eighty (380) compn i nie-~ in the Trade im-
ployed five thl..-and (5,000) nI'ii in lt.',; thi i number declined to







371


four thousand five hundred (4,500) in 1932, a drop of ten (10) per-
cent. Sales during this period declined to twenty-one (21) percent
of the 1929 figure.
This Trade distributes road machinery and other classes of con-
struction machinery and equipment. Activity in the Trade neces-
sarily follows the building programs of the country and the Trade
has suffered severely because of the lack of building during the last
four years. A realization of the expected increase in construction
activity will mean a rapid rise in employment in this Trade.

FINDINGS

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 pro-
ceedings 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 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
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Trade 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 associa-
tion is a trade association truly representative of the aforesaid
Trade; and that said association 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, this Code has been approved by me.
Respectfully,
HUGH S. JOHNSON,
Administrator.
JANUARY 23, 1934.













CODE OF FAIR COMPETITION


FOR THE
CONSTRUCTION MACHINERY DISTRIBUTING TRADE


AIITIC(LE I-PURPPSES

To effectuate the policy of Title I of the National Industrial Re-
covery Act, the following provisions are established as a Code of
Fair Competition for the Constriunction Machinery Distributing
Trade and upon approval by the President. shall be the standard
of fair competition for such Trade and shall be binding upon every
member thereof.
An 'r'LE II-DEFINITIONS

The term "Construction Machinery", or "Machinery", as used
herein, shall include any machinery, equipment, or attachments used
in the construction or mainilte-nance of any project, but not becoming
a permanent part of the structure or of its operation.
The term "Con triiction Machinery Distributor", or "Distribu-
tor", as used herein, shall include any person, other than a manu-
fahturer, who warehouse-., sells, or distributes construction machinery
as herein above defined.
The term "Construction Machinery Dis.tributing Trade", or
"Trade", as used herein, includes distributors as herein above
defined.
The terin Menber of the Trade as used herein includes anyone
engaged in the Trade as above definedd either as an employer or on his
own behalf.
The term Employee as U-cd herein includes anyone engaged in
the Trade in any capacity receiving compensation for his services, ir-
respective of the nature or method of p:iymient of such compensation.
The term Emplnyer as used ihrein includes anyone by whom
any su-hl e(nlmployee is compiensa;ted or employed.
The term Learner as tsi(l herein is a person having no previous
experience in the Trade, and wlho-e employment in the Tradle as such
shall not exceed six (6) months.
The terms President", "Act ", and "Administrator", as used
herein, shall niean respectively, the President. of the United States,
the National Indiistrial Recovery Act, and the Admini trator of
Title I of the said Act.
The teri Effective Date" a, use.-d herein means the second Mon-
day after the Code li hall have berJn approved. by the Pre.-ident. of the
United States.
(372)







373


ARTICLE III-HOURS

SECTION 1. No employee, except as hereinafter provided, shall be
permitted to work in excess of eight. (8) hours per day or in excess
of forty (40) hours per week or in excess of six (6) days in any one
week; provided, however, that during inventory and other peak
periods, an employee may be permitted to work not in excess of forty-
eight (48) hours per week in any three (3) weeks in any six (6)
month's period.
SEc. 2. The limitation as to hours of work shall not apply to per-
sons in a managerial, executive, or supervi-ory capacity, who receive
more than thirty-five (35) dollars per week, and outside salesmen.
Watchmen shall not be permitted to work in excess of fifty-six
(56) hours per week nor in exce-s of six (6) days in any seven (7)
day period.
SEC. 3. The limitation as to hours of work shall not apply to
persons engaged in outside delivery service, plant maintenance, out-
side repair, and/or installation service, nor to persons engaged in
stock receiving and shipping service, who shall be permitted to work
not in excess of forty-eight (48) hours in any one week, provided
time and one-third is paid for all hours worked in excess of forty
(40) hours per week.
SEC. 4. The total number of hours which shall be worked by any
employee whether with one or more employer-, shall not exceed the
maximum as pre-cribed herein.
ARTICLE IV-WAGES

SECTION 1. The niinimunl wage that may be paid by any employer
to any enlployee, except as hereinafter provided, shall be not less
than forty (40) cents per hour; provided, however, that learners
may be paid at a rate of not less than eighty (80) percent of the
above minimum rate;
Provided, further, that the number of learners receiving less than
such minimum rate shall not exceed five (5) percent of the total
number of employees of any one employer covered by this section;
except in cases where the total number of such employees is less than
twenty (20), not more than one such learner may be thus employed.
SEC. 2. The minimum wage that may be paid by any employer to
all clerical employees and salesmen (whether employed on a salary
or commission basis) shall be at a rate of not less than fifteen (15)
dollars per week;
Provided, however, that office boys and girls may be paid at a
rate of not less than eighty (80) percent of such minimum wage;
Provided, further, that the number of such office boys and girls
shall not exceed five (5) percent of the total number of employees
of any one employer covered by this section; except in cases where
the total number of such employees is less than twenty (20), not
more than one such office boy or girl may be thus employed.
SEC. 3. No employee whose normal full-time weekly hours for the
four (4) weeks ending June 30, 1933, are reduced by less than twenty
(20) percent, shall have his or her full-time weekly earnings re-






374


duced. Any employee whose said full-time weekly hours are re-
duced1 by fifty (50) percent shall not have his or her said earnings
reduced by more than twenty-five (25) percent. All other employees
whose hoir.s are reduced in excess of the said twenty (20) percent
shall have their earnings adjusted proportionately.
Sie". 4. No per-on who has worked as a learner in the trade for
the period of timi prescribed in Article II may thereafter be
cln.--ififll as a learner.

A Rn I. I: V-GI-:NI:I-.\L LABOR PRnVISIONS

SE iTN-, 1. No person Iunder sixteen (16) years of age shall be
employedl in the Triade, nor anyone under eighteen (18) years of
age at operatiiin.s or oc(,ipatiens hazardous, in nature or detrimental
to health. 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 i-stiied by the Authority in such State empowered
to i-iie 1 emplovyment or age certificates or permits. showing that the
employee is of the required age.
SFC. 2. Employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the intErfereence, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-oIranization or in other concerted activities for the purpose of
collc.ti bargaining or other mutual aid or protection.
S:. 3. No employee and no one seeking employment shall be
1re(liried as a condition of employment to join any company union
or to refrain from joining. organizing, or as.-i-ting a labor organ-
ization of his own choosing.
SEC. 4. Employers -haill comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEC. 5. Within each State this Code shall not suplersede any laws
of such State impoling more stringent. requirements on employers
regitliatingL the ;iag of ernplloyees, wages. hours of work, or health,
fire. or gtE'leral wo1rkini,_ conditions than under this Code.
Si.u. 6. Employers shall not recla~.sify employees or duties of occu-
patins prforined by employees i-o as to defeat the purposes of the
Ac-t.
SEC. 7. Each employer shall ~pos)t in conspicuous places Articles
III. IV. and V of this Code.

A_\TICLE VI-ADMINI TIRATION

S r -nrix 1. To further effcttiite the policies of the Act. a Code
Authority is hereby set up as a Supervisory Agency to cooperate
with the Admlninistratior in making investigations as to the function-
ing and oilh.-srvance of any of the lprovi.sions of this Code, at its own
ini-ti:rI'o. or on ceipl)laint by any person affected and to report the
same to thi Administrator.
SI-. 2. Suchl Codle Auithority shall consist of three members
chosen 1tv the Executive Commnittee of the Asiociated Equipment






375

Distributors; members of the Trade who as:.-nt to the Code, but are
not members of the Associated Equiiplenit Di.- ritutors may, if they
desire, elect two additional inembler~ of said Coi. A.-:illity in any
fair manner approved by the Admini.-'trato. The Admiii-tratr
may also appoint one to three additional members. without vote, to
serve as representatives of the Government. Si,. g overniintal
representatives. are to be appointed for terms of from six (6) m ith-;
to one (1) year, and if imore than one i. appoi't.l,1. their terms are
to be arranged so that they do not expire at the same time. The
Code Authority shall have authority to e.tablish .-Iuichoullittees and
stat., regional, or local coinniittees, with such ldel ated powi-r. as it
may deem necessary.
SEC. 3. (a) Any imeber of the Trade may le inll'? a member of
the Associated Equipment Di-tributors and there shall be no in-
equitable re:;triction on such member-hip.
(b) Any member of the Trade may participate in and share the
benefits of the activities of the Code Authority and participate in
the selection of the members thereof to the same extent as the. mem-
bers of the Associated Equipment Distributors by assenting to and
complying with the requirements of this Code and isustaining his
reasonable share of the expenses of its administration. Such rea.,on-
cble share of the expenses of administration shall be determined by
the Code Authority, subject to review by the Administrator, on the
basis of volume of bu.imness and/or -uch other factors as may be
deemed equitable.
Sec. 4. Each trade or trade as-sociation directly or indirectly par-
ticipating 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 a.-sociation,
bylaws, regulations, and any amendments when made thereto, to-
gether with such other information as to membership, organization,
and activities as the Admini:trator 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 Trade 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.
SEC. G. The Code Authority may require members of the Trade to
make reports on such forms and in such manner as may be necessary
properly to inform the President of the United States with respect
to the observance of the Code, and to make recommendations to the
Administrator for modification of the Code.
In addition to information required to be submitted to the Code
Authority, there shall be furnished to government agencies such sta-
tistical information as the Administrator may deem necessary for
the purpose recited in Section 3 (a) of the National Industrial Re-
covery Act.
SEC. 7. The Code Authority shall study the trade-practice pro-
visions of this Code and the operation thereof and shall make any






376


recommendations from time to time to the Administrator which it
deems desirable for modification or addition thereto.
SEC. 8. Any action taken by the Code Authority shall be subject
to the right of the Administrator on review to approve or disapprove
such action.
ARTICLE VII-TRADE PRACTICES

The following practices constitute unfair methods of competition
and are prohibited:
SECTION 1. Inducing or attempting to induce a breach of contract
to which a member of the Trade is a party.
SEC. 2. Enticing or attempting to entice the officers or employees
of a competitor to violate their contract of employment.; provided,
however, that nothing in this Section 2 shall prevent an employer
from employing the employees of another employer.
SEC. 3. Paying or allowing secret rebates, refunds, unearned dis-
counts or credits, either in the form of money or otherwise, or
secretly extending to certain purchasers special services or privileges
not extended to all purchasers on like terms or conditions.
SEC. 4. Paying or agreeing to pay, directly or indirectly, a com-
mission or consideration of any kind, except to persons regularly
employed in the seller's organization or to regularly established
subdealers; provided, however, that nothing in this Section 4 shall
be construed to prevent the allowance of discounts to customers as
prescribed in the seller's published price lists and discount sheet.
SEC. 5. Accepting or offering to accept used machinery or attach-
ments, u-ed equipment, or other property in trade on the purchase
price of new machinery or attachments, or allowing or granting
credit, directly or indirectly, therefore; provided, however, that
nothing herein contained shall be construed to prevent a member of
the Trade from purchasing used machinery or equipment or other
property as a separate and independent transaction.
SEC. 6. Selling below list price. No member of the Trade shall
sell or offer to sell any new standard machinery, attachments, or
equipment at a price lower or on terms more favorable than as
stated in his published price lists, or price lists with discount sheets.
if any, filed in accordance with Article IX; provided, however, that
damaged, obsolete, noncurrent, and distress construction machinery,
attachments, or equipment may be sold at such prices as are necessary
to move the goods into buyers' hands, but only after filing with the
Code Authority at least ten (10) days in advance of such sale a list
showing the quantity and description of such machinery.
SEC. 7. Quoting a lump-sum price on two or more pieces of equip-
ment which does not show unit prices, or making additions or
deductions on any other basis than the unit prices shown.
SEC. 8. Making or offering to make any guarantee on machinery
as to material and workmanship more liberal than the printed or
written guarantee of the manufacturer of such machinery.
SEC. 9. Accepting orders for future delivery subject to cancella-
tion, except such orders as are contingent upon conditions affecting
the purchaser, which conditions shall be clearly stated in the order;
provided, however, that after sixty (60) days from (late of order no







377


competition shall be stopped under Section 1 of this Article VII
from attempting to sell the purchaser n.lclhinery in lieu of that
covered by such contingent order.
SEC. 10. Misrepresenting the facts about a competitor or the gods
which he sells.
SEC. 11. Misrepresenting the fats about one'., own c',liipany or the
goods which it sells.
SEC. 12. Quoting delivered prices or invoicing purchaser without
adding. to the f.o.b. factory pri,'e, tran-portation and other charges,
and failing to state in quotation, where freight is to be prepaid, that
such prepaid freight, will be charged as a sepnarat item and billed
net cash.
SEC. 13. Guara!lteeing against advances and declines in prices of
goods sold.
SEc. 14. Allowing more than ninety (90) percent of the net selling
prices as credit on returned goods when the distributor or manufac-
turer is not at fault.
SEC. 15. Discriminating bet ween purchalsers by renting new ma-
chines or attachments at less than a reasonable rental price or by
allowing any of the first two months' rental or more than eighty (SO)
percent of rentals thereafter paid or accrlltei to be applied as partial
payment or reduction of the list or net selling price on like new
equipment where the transaction is later converted into a sale.
SEC. 16. Selling a new machine or attachment subject to accept-
ance after trial; provided, however, that this shall not prevent
making and completing a sale subject to performance in compliance
with specific guarantees.
SEC. 17. Failing to require on installment sales at least twenty-five
(25) percent cash payment before shipment or on delivery of the
goods sold and the payment of the balance of the purchase price
in monthly installments, the first installment to be payable in not
more than sixty (60) days from (late of shipment, the lhst install-
ment to be payable in not more than twelve (12) months from date
of shipment. All installments shall be evidenced by notes bea ing
date of shipment and bearing interest at the rate of not less than
six (6) percent per annum from d:ite of shipment until paid. No in-
stallment note shall be extended or renewed in whole or in part
except for actual inability of the purchaser to make payments. No
understanding for renewal or extension of any installment note shall
be made prior to the sale of the goods to the purchaser. In the < ase
of government or political subdivisions not less than twenty-five (25)
percent cash payment shall be made not later than the first regular
meeting of the purchasing body sub-equent to the date of delivery;
the balance of the purchase price may be spread over a period of not
more than twelve (12) months from date of sliipment and shall in-
clude interest at not less than six (6) percent per annum from date of
shipment to date of payment.

ARTICLE VIII-SCOPE OF CODE

Any member of the Trade may elect to be governed by either the
fair trade practices as set forth in Article VII of this Code or by the
fair trade practices set forth in the Code of Fair Competition of the






378


manufacturer or manufacturers of the goods which are sold by such
member of the Trade. Any member of the Trade shall be conclu-
sively presumed to have elected to be governed by the fair trade prac-
tices of this Code unless he shall have filed notice of a contrary in-
tention with the Code Authority of this Code and the Code Authority
of the Code by the fair trade practices of which he elects to be gov-
erned. Such election may be changed at any time upon notice filed
with the said Code Authorities. Provided, however, that the fair
trade practice provisions of Article VII of this Code shall not be
binding upon any member of the Trade with respect to the Goods
sold by the ultimate purchaser in competition with other sellers not
members of this Trade, unless and until such other sellers of said
competitive machinery are brought within the scope of the trade
practice provisions of this or some other Code of Fair Competition.

ARTICLE IX-PUBLICITY OF PRICES

SECTION 1. Each mellber of the Trade shall within thirty (30)
days after the effective date of this Code file with the Code Author-
ity copies of his price lists, with discount sheets, if any, showing
prices for all machinery, attachments, and equipment which said
number sells. Each member of the Trade shall at all times main-
tain and file with the Code Authority price lists, with discount
sheets, if any, showing prices of all of said machinery, attachments,
and equipment and shall not make any change in said prices except
by filing notice of such price changes as hereinafter provided.
SEC. 2. None of the prices shown in any price lists, with discount
sheets, if any, filed by any member of the Trade as herein provided,
shall be changed except by filing by such member of the Trade of
new price lists, with discount sheets, if any. When any member of
the Trade has so filed changes in or revisions of his published price
lists, with discount sheets, if any, any other member of the Trade
may so file changes in or revisions of his published price lists, with
discount sheets, if any, which, if filed prior to the date when the
changes or revisions first filed become effective, shall become effective
upon that date.
SEC. 3. Each price list, with discount sheet, if any, shall become
effective ten (10) days after the filing of such price list, with dis-
count sheet, if any, with the Code Authority; provided, however,
that the first price lists, with discount sheets, if any, filed by any
member of the Trade as above provided, shall become effective on
the date of filing thereof.
SEC. 4. The operation of the foregoing shall at all times be subject
to review and disapproval of the Administrator.

ARTICLE X-MODIFICATION

SECTION 1. This Code and all the provisions thereof are expreqqly
made subject to the right of the President, in accordance with the
provisions of Section 10 (b) of the Act, from time to timn to (;ncel
or modify any order, approval, license, rule, or regulation issued
under Title I of said Act and specifically, but without limitation, to







379


the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him upon his approval thereof.
SEC. 2. This Code, except as to provisions reilired by the Act,
may be modified on the basis of experience or changes in circium-
stances, such modification to be lia:sed upon application to the Ad-
ministrator and such notice and hearing as he shall speify, and to
become effective on approval by the President.

ArTIc.LE XI--MNiiu l-l I:S

No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.

ARTICLE XII-EFFECTIVE DATE OF THIS CODE

This Code shall become effective on the second Monday after
its approval by the President and shall be binding upon every
member of the Trade.
Appruveil Code No. 223.
Registry No. 1399-17.




UNIVERSITY OF FLORIDA
11 I i 11llIW 1 11 li1) H 1 111 11 11 111111111111i llI
3 1262 08582 9199




Full Text

PAGE 1

Approved Code No. 223 Registry No. 1399-17NATIONAL RECOVERY ADMINISTRATIONCODE OF FAIR COMPETITIONFOR THECONSTRUCTION MACHINERYDISTRIBUTING TRADEAS APPROVED ON JANUARY 23, 1934MEMBER-WE DO OUR PARTUNITED STATESGOVERNMENT PRINTING OFFICEWASHINGTON: 1934For sale by the Superintendent of Documents, Washington, D.C. -------Price 5 cents

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This publication ii for sale by the Superintcndent uf Documents, GovernmentPrinting Office, Washington, I.C., :ad by district voices of the Bureau ofForeign and I )(Inmstie Commeice.DISTRICT OFFICES OF THE DEPARTMENT CF COMMERCEAtlanta, (a.: 504 Post Office I'uilding.Birmingham, Ala.: 257 Fcderal Builtling.Boston, Mass.: 1501 Customhouse.buffalo, N.Y. C"aml yr of Commerce Building.Charleston, S.C.: Chamber of Commerce Building.Chicago, Ill.: Suite 1706, 201 North Wells Street.(,;e% eland, Ohio: Chamber of Comn erlu'e.Dallas, Tex.: Chamber of Commerce Building.11 roit. Mich.: 1 First Nat ioni l Ba ik I uildig.Houston, Tex. Chamber of Commerce Building.India napolis, Ind. Chanibor of Commerce Building. Jackso ville, FlI. Chamber of Coimmerce Building.Kansas City, Mo. 1028 Baltimore Avenue.Los Angeles. Calif.: 1163 ouh BrontAw:y.Louisville. Ky.: 408 Federal Building.Memphis. Teni.: 229 FederAl Building.Mimieapolis, Min:.: 213 Feorail P iliding.New Orleaus. La.: Room 22.-A, Custeml house.New York. N.Y.: 734 Custombause.Norfolk, Va.: 406 East Plum Street.PhJIio elphiii, Pa.: 4122 Coimint-izl Tr~u t Elnilding.Pittsburgh. Pa.: Clziniber of n1niret Builing.I'ortland, Oreg. 215 New Post Olfice Building.St. Louis. Mo.: 506 Olive Street.San Fran.i ,io, C:litf.: 310 ('ust (fomlhouse.Seattl , Wash.: 8W) Fc'deral Oflice BuiHing.

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(Reprinted Code)Approved Code No. 223 Registry No. 1399-17ERRATA SHEETCODE OF FAIR COMPETITIONFOR THECONSTRUCTION MACHINERY DISTRIBUTINGTRADEAs Approved on January 23, 1934Article IL paragraph 2, line 10, insert the word " rents " after theword "sells ", so that the phrase reads as follows: who warehouses,sells, rents, or distributes construction machinery * * *".101440*-1385-42-34 u. S. GOVERNMENT PRINTING OFFICE: 1984

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[)igitized by the Internet Arhivein 201 1 with fundilng fromUJniverity of FLria, G0eorge A. Smath ers [ibraries with support from LYRALI and the Slan Foundationhttp://w'wwar chive~org/'detilrr/codeoffair ;ompet9199ni t

PAGE 5

Approved Code No. 223 Registry No. 1399-17ERRATA SHEETCODE OF FAIR COMPETITIONFOR THECONSTRUCTION MACHINERY DISTRIBUTING TRADEAs Approved on January 23, 1934Article II, 211d paragraph, 5th line, add the word " rents " after" sells.-Article VII, Section 2, 4th line, replace " which " by the wordA with."Article VII. Section 3, 'Ard and 4th lines, replace the words" pirchasers " by the woird -customers."Article VII. Section 4, 3r iid ie. replace the word " sellers " by thewOrd " distributors."Article \II, Section G, delete evervthing starting with the wordprovided in the 5th line to and including the words ". suchmachinery " in the 10th line.1050:V 1285-137-35U.S. GOVERNMENT PRINTING OFFICE: 1'35

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Approved Code No. 223CODE OF FAIR COMPETITIONFOR THECONSTRUCTION MACHINERY DISTRIBUTINGTRADEAs Approved on January 23, 1934ORDERAPPROVING CODE OF FAIR COMPETITIONFOR THECONSTRUCTION MACHINERY DISTRIBUTINGTRADEAn application having been duly made pur -uant to and in fullcompliance with the provisions of Title I of the National IndustrialRecovery Act, approved June 16, 1933, for approval of a Codeof Fair Competition for the Construction Machinery DistributingTrade, and hearings having been duly held thereon and the annexedreport on said Code, containing findings with respect thereto, havingbeen made and directed to the President:NOW, THEREFORE, on behalf of the President of the UnitedStates, 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. (543-A, dated December 30.1933, and otherwise; do hereby incorporate by reference saidannexed report and do find that said Code complies in all respectswith the pertinent provisions and will promote the policy and pur-poses of said Title of said Act; and (To hereby order that said Codeof Fair Competition be and it is hereby approved.HUGh S. JOhNSON.Adminisftator for Indlustial Re(oveiey.Approval Recommended:MALCOLM MUIR,Division Adm.1.ansrator.WASIINGTON, D.C.,January 23, 1934.35367-313-112-34 (369)

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The PRESIDENT,T he W ITe Hous.Sir: Ths is a report on the Code of Fair Competition for theConstruction iMachinery Distributing Trade in the united States,as revised after a Public Hearing, Conducted in WAVashington onOctober 9, 1933, iM accordaiice with the provisions of the NationalIndustrial Recovery Act.PROViSiONS FOR wAGES AND HOURSA maximum work week of forty (40) hours, and nlot to exceedeight (8) hours per day is adopted under the Code, with provisloiofor peak periods of forty-eight (48) hours per week for not morethan three (3) weeks of any six (() months' period. Exectitivesreceiving more than thirty-five (35)' dollars peri week and outsidesalesmen are excepted from the schedule of maxim umn hours, whileoutside service employees, tlose engaged in plant nainitenace, andstock room em plovees may work a maximum of fortv-eigh'bt (48)hours per week with paymnelit of time and one-third for all hoursworked in excess of forty (40) hours per week. WatclmUnen may notwork more than fifty-six (56) hours in any one (1) week, nor moretlian six (6) days in any seven (7) day perio(l.The minimnmn wage for all horly rated employees will be notless than forty (40) cents per hour, except that learners may be paidat the rate of not less than eighty (80) percent of this minimum wagefor the first six (6) months of their employmnt. The number ofsuch learners shall not exceed five (5) percent of the total employees.Clerical employees will be paid at the rate of not less thani fifteen(15) dollars per week, while office boys will be paid at not less thaneighty (80) percent of this rate.The Code has a provision for equitable adjustment of all payschedules in excess of the minimum provided.CHILD LABORTlie mininmimm age of employees will be sixteen (16) years, exceptin hazardous occpatiois, where the minimun is raised to eightemn (18) years.V NtKII EFFECT OF T[E (TH EThs flrt\ (-) hiur vc'k ltipulattd in lth (' e is a ru infma t()rI)Ie ak\'trag'Y Of tifty' ('50) hours, and the Trade cimaIKVIlhaIt uroler the C. ode tiimip iimei will e i'crcascd approxIiImAelyIi ft een (15) p)'eriftMininun wage rtes spe Ifi ( rpres'ent zin increase of proiitithiv twelve (12) perl'nt ()\-or the w!e' prevailing b oe theadopt in of t h(Il nh v >'Ie Ualled for in this C de.Thn th 11e lnh red arni Q) hty ( ) ccmpai t in tl. Tr: he CII-ply iliv th :tit ('000) m9 :" i 9: ; thiiis miiibhi'r declined to(:7')

PAGE 9

371four thousand five hundred (4.500) in 1932, a drop of ten (10) per-cent. Sales during this period declined to twenty-one (21) percent of the 1929 figure.This Trade distributes road( machineryN, and other classes of cofn-struction machinery and equipment. Activity in the Trade neces-sarily follows the building programs of the country and the Tradehas suffered severely because of the lack of buildHing during the lastfour years. A realization of the expected increase in constructionactivity will mean a rapid rise in employment in this Trade.FINDINGSThe Deputy Administrator in his final report to me on said Codehaving founl as herein set forth and on the basis of all the pro-ceedings 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, includingremoval of obstructions to the free flow of interstate and foreigncommerce 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 o.f cooperative action among the trade groups,by inducing and maintaining united action of labor and manazement under adequate governmental sanctions and supervision. byeliminating unfair comJnpetitive practices. by promoting the fullestPossible utilization of the present productive capacity of industries,by avoiding undue restriction of production (except as may be temn-porariL required), by increasing .the consmiu ll pt ion of industrial andagricultural products thronugh increasing purchasing Power, byreducinand relieving unemiployment, by inmproving standards oflabor, and by otherwise rehabilitatingY industry.(b) Said Trade normally employs not nore than 50,000 em-ployees; and is not classifie( by tie 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 associa-tion is a trade association truly representative of the aforesaidTrade; and that said association imposes no inequitable restrictionson adiiss ion to membership therein.(d) The Code is not designed to and will not permit monopoliesor monopolistic practices.(e) The Code is not designed to and will not eliminate or oppresssmall enterprises and will not operate to discriminate against them.(f) Those engaged in other steps of the economic process have notbeen deprived of the right to be heard prior to approval of saidCode.For these reasons, this (ode has been approved by me.Respectfully,HUGH S. JoHNSoN,Administrator.JANUARY 23, 1934.

PAGE 10

CODE OF FAIR COMPETITIONFOR THECONSTRUCTION MACHINERY DISTRIBUTING TRADEARTICLE I-PuInOSEsTo effectuate the policy of Title I of the National Industrial Re-covery Act, the following provisions are established as a Code ofFair Competition for the Con.strwction Machinery DistributingTrade and upon approval by the Presidcnt shall be the standardof fair competition for such Trade and shall be binding upon everymember thereof.ARriTiE II-DmVI11 IsThe termn "Construction Machinery", oras usedherein. shall include any mchinery, e(quipment, or attachments usedthe instruction antane project, but not be na permanent part of the structure or of its operation.The term "Construction Maehiinery Distributor", or "Distribu-tor" , as used herein, shall include any person, other than a manu-facturer, who warehouses. sl(lJ, or distributes construction machineryas hereini above defined.The term " Coistructioi Ma(hinerv Istributing Trade ", or" Tade ". as tsed herein, iles distributors as herein aboved " ind.The tcru -Member of the Trade a used herein includes anyoneeg0gi'ed *I ii ith Ira(lde "Is Omve defied either as an emplover or oli hisOwN I behltif.Th tolIm Enmiployee as uev0d Ihrein includes anyone eng:aged inthe Tra(Ic in any cplIy( r cCiving' compelsation for his services, ir-resp.ective of the nature OP method of paymient of such collpelsa !tion.Th1w te1r11 " Employer " '1as used hwrein 11 11icldes lnyonie by whomany sin (11 employee s111 COM' 1s ted or employed.The te I L1 ear l as 1 n-ed levcill iS I perSOn 118ving nm prleviolsexp1ri llce 11 the TraIde, Ind wh0e em uplomvimIt in the Trade as suchs1all int exceed d ix (6) months.The tel 1" -President , 'Act ", 11 'Ad(m1iistrator ", as Lsedereill, shall muai respectively, the President of the United States,tho N:tional In'0strii Recnvc'v Act. ani the Adinist ator ofTit](, 1 (J the said \ct.T (l] rm " Ei'1tive DIate " a112 4d helinll eslls the second Mon-(d y v fter tlhe C(ode ll have "cin alipproved bv tho President of theUnited Sthates.(Gt2)

PAGE 11

373ARTICLE 111-hOURSSE(CTIO 1. No employee, except as hereinafter provided, shall bepermitted to work in excess of eight. (8) lioriis per day or In excessof forty (40) hours per week or in excess of six ((3) days in any oneweek; provided, however, that (urig inventory anid other peakperiods, an employee may be permitted to work )ot in excess of forty-eight (48) hours per week in any three (G3) weeks in any six (6)month's period.SEC. 2. The limitation as to hours of work shall not apply to per-sois in a managerial, executive, or supervisory capacity, who receivemore than thirty-five (35) dollars per week, and outside salesmen.Watchnw shall not be permitted to wAork ill excess of fifty-six(5() hours per week nor in excess of six ((3) days in any seven (7)day period.SEC. 3. Te limitation as to hours of work shall not apply topersons engaged in outside delivery service, plant maintenance, out-side repair, and/or installation service, nor to persons engaged iMstock receiving and shipping service. who shall Ibe permitted to worknot in excess of forty-eight (48) hours in any one week, providedtime and one-third is paid for all hours worhed 1 in excess of forty(40) hours per week.SEC. 4. The total number of hours which shall be worked by anyemployee whether with one or moire employers. i-hall not, exceeld themaximum as pre cribed herein.AIMCLE I \-WAOESSEcTION 1. The minimum wage that miaV be paid by any employerto any employee, except as hereinafter provided. shall be not lessthan forty (40) cents per hour; provided, however, that learnersmay be paid at a rate of not less than eighty (80) percent of theabove minimum rate;Provided, further, that the number of learners receiving less thansuch minimum rate shall not exceed five (5) percent of the totalnumber of employees of any one employer covered by this section;except in cases where the total number of such emplovees is less than twenty (20), not more than one such learner may be thus employed.SEC. 2. The minimum wage that may be paid by any employer toall clerical employees and salesmen (whether employed on a salaryor commission basis) shall be at a rate of not less than fifteen (15)dollars per week;Provided, however, that office boys and girls may be paid at arate of not less than eighty (80) percent of such minmun wage;Provided, further, that the number of such office boys and girlsshall not exceed five (5) percent of the total number of employeesof any one employer covered by this section; except in cases wherethe total number of such employees is less than twenty (20), notmore than one such office boy or girl may be thus employed.SEC. 3. No employee whose normal full-time weekly hours for thefour (4) weeks ending June 30, 1933, are reduced by less than twenty(20) percent, shall have his or her full-time weekly earnings re-

PAGE 12

11AMO S 11 4U3 01 111P pilj Olp p)1 k I ll p)I 1)11 :4-1XI)-. (tit .ajU() O.) p -o l 0-1 ~pd 0101)))) 'ill AO il" jT \ 11-113)0 40.10 -1111) .10 S .AO T11 I I1i. J T11 1 0 0,01 siL O Tl; :,-:m iS_01011td10)s144111 ITOmI mouii tdli)3~V~mt opll ip t .0XjiJS1411 2'1 '1 A 13,Iiu 71 T 47111;[171S~d~fIUOHOS~~idl~d 111314.1Hp1 4>0.1 1111 to~i~ pLI11 1 uT oaa vj 111 0J)Ii)ifl uM )11I )11lt ) -jjk 1111 4 1 1 T~ il ,O ~j 1'-Imam J TdluiUm) ul0 -1oi4po 4101.61dfljo j 1 201211111(.1O~13~JO 5.11011 U tJII M[H011 I Ajdv)I Jtl 01314 1A014UV4111111AT ldu 1.)aU U111 m 04U 4UOIIIj1T j !0ll () 1t) li t)1 3 1111tIjo7144 o.1(1in ail! ao3 p ll ! 1 0111OU ) , D) j7111 .711' '1TI J SAT1 {IJS0.1td0 tj.)WV JO [itd10 -11 4 Juo'u~)417Iso S40AVojd11i So) 11034.) .1l0( Ii~ '41<40.1 UOJO Ui4 I11 'ItIII O.JI 0 1M T 011ItsI puru x'ulsou143 HuxO' 4l11 JO 0i140 ddl1IO11Aft1}XjQ.01 ~il Odtl 014 4 0 ,OOI(11P,1.12 ol Iji; ) 0A1314 11m14z o'I 4 .113 o4 51r l10 .mid -.411) upim' p.)ij(1-110."OI P 'TTIOO0 (1 iV'V11 .2,).AO1 IO~ 3 7V 4.. Ajj 1II' hfIII )II ()411311u 114401) JO. 041111i Ili S11 Oj)JUZUT131 Sl; jt oo11~.2). 21 '43l I i!37 JO ~4130A t~a ) jl 10411.411111 OtioAUU [1011 O'di If!.14 1 ~tt ~.104 -T)131 O14 TI .1011,113)1 V3 SV t',N-'M ~.1111 M''Vk 110 101( '1_qu@310d (()F) plus~tN~ ail{ pO~.0X) 111 po.2)1lJ) vu 0413 notj )-:Olpxs0a0Jod110 .01110 11v *4110340( (7. e),klXi~A1IUJ 0111A )03110S 4 111d.11 PIVS .101[ .10 '-Il IdA131f IOU1 Jf1KW4U0).1.t)d(l 1') X4414j At( p))11-0.1 OJI] 5111014 ApjaaAi~ 0111-jpjlI p!Vs o0.2o)j d mol~ _11V -t;<,v1tic

PAGE 13

Distributors; members of the Trade who awt to twt (e 'ut iui:renot members of the As oriated Eqjuipimeit D ibt mny. If theydesire, elect two additional mwmberi of -aid \Lnority i anfair mtaniner approved vY tle Adlliniht rato. T1e 1 b1iwi-tratorma1;y 11l-o appoint one( 1to three,( wadditil moed1 w il"iomt v,)tc. 0)-erve as representatiVeof the (iovermlitnit. Sh 2oVerimetal1'cpresenitatives arc to 1we apjminited foi, term i0n i 0 lillwldl-to one (1) year, aid i' more 1h:n (411 i. ppIf .dhi'V trmuarmto be irraniiud t tiht they do not expiirt :a ti ame -! ime. TIeC-ode _Authiority siatl l ave authoi-tY to e blh honite nd4tate, re-iohial. Or lotal olmittet,wviii -uilciih lgt i wel> a>; iti1nV lenin e1e1 a i.EC. 3. (a) An Oen If the Trad oe in a Y Ix.o tiis a mlihmir ofthe Asociated Equioinent Distributors anti there all 1w ill,) in-(quitable re Arictioin oi such imemiber-hip.(b) Any m1ebileri of tim Trade 1)Uy in ali IIIare thebeiiefits of the activities of the Code Authority anl participate inthe selection of the mm mbrs thereof to the sitae extent 'l i(ie imemi-bers of the Associated Equipment Distributors by assenting to andcomplying with the requirements of tIl Code t >lI 1ustainiiin hisreasonable share of the expen-es of it, athlinijistrat ion. Such reaon-.ible share of the expenses of admniistration shall he deteriiinited bythe Code Authority, subject to review by the A inistrator, on thebasis of volume of business and or sich other factors as may bedeemed equitable.SEC. 4. Each trade or trade asociation directly or iiirectly par-ticipating in the election or activities of the Code Auth ority shall(1) Impose no inequitable restrictions on membershi). and (2) sub-mit to the Administrator true copies of its articles of a2sociation,bylaws, regulations, and anY amMiellndllelts when made thereto, to-gether with such other information as to membership. organization,and activities as the Administrator may deem necessary to effectuatefhe purposes of the Act.EC. 0. Ill order that th0 Code Authority shall at all ti!ies be trulyrepre-entative of the Trade and in otierl respects comply with the provisions of the Act, the Administrator may provide such hearingsas he may (leem proper; and thereafter if he shall finid that tie CodeAuthority is not trulv representative or dons not in other respects comply with the provisions of the Act, may require an appropriatemodification in the method of selection of the Code Authority.SEC. 6. The Code Authority may require members of the Trade to make reports oi such forms and in such manner a, may be necessaryproperly to inform the President of the United States with respect to the observance of the Code, and to make recoinnieldatlonlto theAdmini trator for modification of the Code.In addition to information required to be submitted to the CodeAuthority, there shall be furnished to government agencin2 -weh sta-tistical information as the Administrator may deem nece-ary forthe purpose recited in Section 3 (a) of the National Indii-triah Re-coverv Act.SEC. 7. The Code Authority shall study tie trade-practice pro-visions of this Code and the operation thereof and shall make any

PAGE 14

376recommendations from time to time to the Administrator which itdeems desirable for modification or addition thereto.SEC. 8. Any action taken by the Code Authority shall be subjectto the right of the Administrator on review to approve or disapprovesuch action.ARTICLE II-TRADE PRACTICESThe following practices constitute fair methods of competitionand are prohibited:SECTION 1. Inducing or attempting to induce a breach of contractto which a member of the Trade is a party.SEC. 2. Enticing or attempting to entice the officers or employeesof a, competitor to violate their contract of employment; provided,however, that nothing in this Section 2 shall prevent an employerfrom ellploying the employees of another employer.SEC. 3. Paying or allowing secret rebates, refunds, unearned dis-counts or credit, either in the form of money or otherwise, orsecretly extending to certain purchasers special services or privilegesnot extended to all purchasers on like terms or conditions.SEC. 4. Paying or agreeing to pay, directly or indirectly, a coin-missioil or consideration of any kind, except to persons regularlyemployed in the seller's organization or to regularly establishedsubdealers; provided, however, that nothing in this Section 4 shallbe construed to prevent the allowance of discounts to customers asprescribed in the seller's published price lists and discount Ihet.SEC. 5. Accepting or offering to accept used machinery or attach-ments, used equipment, or other property in trade on the purchaseprice of new machinery or attachments, or allowing or grantingcredit, directly or indirectly, therefor; provided, however, thatnothing herein contained shall be construed to prevent a member ofthe Trade from purchasing used machinery or equipment or otherproperty as a separate and independent transaction.SEC. (). Selling below list price. No member of the Trade shallsell or offer to sell any new standard machinery, attachments, orequipment at a price lower or on terms more favorable than asstated in his published price lists, or price lists with discount sheets.if any, filed in accordance with Article IX; provided, however, thatdama g(ed obsolete, noncurrent, and distress construction machinery,attachments, or equipment may be sold at such prices as are necessaryto move the goods into buyers' hands, but only after filing with theCode Authority at least ten (10) days in advance of such sale a listshowing the quantity and description of such machinery.SEC. 7. Quoting a lump-sum price on two or more pieces of equip-ment wbhicli does not show unit prices, or making additions ordeductions on any other basis than the unit prices shown.SEC. 8. Making or offeriiig to make any guarantee on machineryas to material amnd workmaniship more liberal than the printed orwritten guarantee of time manfacturer of such machinery.SEC. 9. Acceptinig orders for future delivery subject to cancella-tion, except such orders as are contingent upon conditions aflectingibthe purchaser, wiich conditions shall be clearly stated in the order;provided, however, that after sixty (60) days from date of order no

PAGE 15

377competitior shall be estoppeld under ' eetimi 1 of this Article VIfrom attelnpting to -.ell the purlihaner it-hiiwerv in 1;e11 oJ tiatCOVreId )v suih cont 1.ent order.SEC. 10.' Mi-irepresenting,( the? facts abolit 't c( mpetitor or the gnwhich he >ells.SEC. 11. AtiSrepre.-;eIItiIn2? the faets aboiit (we owi ;iispny of thegoods which it sells.SEC. I2. Quoting deliVOIrl prhOs or invoicing Juriha.r withoUtadd i1i to the t.(.b. factory price, traii rta ti aw1(1 other cha rs,and failing to state in (Ilotation. wI r fi 1h 1.t is to be rIIait. t hatsuch prepaid freight will he cared as I :-epa til item amIi I)I 1!ed 1net cash.SEC. 1;;. ( Gtiarateeint:araiiv-t advance ani deeines in price ofgoods Sold.SEC. 14. Allowvig more than iiiiiety (90) per';"''nt of the et iprices as credit on returned goods when the distributor or ali facturer is not at lault.SEC. 15. Discrii1iiating between purchIa-ers bv renting new in a-chines or attachments at less than a reasonable rental price or byallowing any of the first two months" rental or more than eio'hty (SO)percent of rentals thereafter paid or aeerned to be applied a't partialpayment or reduction of the 1i4 or net selling price on like newequipment where the transaction is later converted into a sale.SEC. 16. calling anew machine or attachinent subieeta. eto acciJpt-ance after trial; provided, however, that this shall not preventmaking dl completing a sale objectt to p)er'Ifmane in c liancewithi specific guarantees.S E C. 17. Failing to require oi iinstallimient sales at lea4 twet fv-live(25) percent cash payment before Ahipment or on delivery of thegoods sold and the pay' -ment of the balance of the purl'-hase pr icein monthly in-allment,. the fir-t inst allinent to be payable in notmore than sixty (60) days from date of shipment, the List in-tall-ment to be payable in not move thin twelve ( m12) months from dateof shipment. All intalent shall be evideeed by nowes be', ingdate of shipment and bearin& interest at the rate of not les thansix (6Y percent per annium fro, hte ()f shipment nutil paid. No in-staliment note shall be extended or renewed in whole or in partexcept for actual inability of the purchaser to make payments Nounderstanding for renewal or extension of any instalhuent note hiallbe made prior to the sale of the goods to the purchaser. III the ' a-oof government or polite; al subdivisions not less than t wenty-five (25)percent cash paviient shall be inafle not later than the fir-4 reigiularmeeting of the purchasing body sub-equent to the date of delivery;the balance of the purchase price may be spread over a period of notmore than twelve (12) nioniths from date of 511hipment and >hall in-clude interest at not less than six (6) percent per anmum from date ofshipment to date of payment.ARTICLE VIII-SCOpE OF CODEAny member of the Trade may elect to be governed by either thefair trade practices as set forth in Article VII of this Code or bv thefair trade practices set forth in the Code of Fair Competition of the

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378manufacturer or manufacturers of the goods which are sold by suchmember of the T I rade. Any member of the Trade shall be conclu-sively presumed to have elected to be governed by the fair trade prac-tices of this Code unless he shall have filed notice of a contrary in-tention with the Code Authority of this Code and the Code Authorityof the Code by the fair trade practices of which he elects to be gov-erned. Such election iaV be changed at any time upon notice filedwith the said Code Authorities. Provided, however, that the fairtrade practice provisions of Article VII of this Code shall not bebinding l1poni any member of the Trade with respect to the Goodssold by the ultimate pjirchaser in competition with other sellers notmembers of this Trade, unless and until such other sellers of saidcompetitive machinery are brought within the scope of the tradepractice provisions of this or some other Code of Fair Competition.ARTICLE IX-PULACITY OF PRICESSECTION 1. Each member of the Trade shall within thirty (30)da vs after the effective date of this Code file with the Code Author-ity copies of his price lists, with discount sheets, if any, showingyprices for all machinery. attachmiients, and e(quipient which saidmember sells. Each member of the Trade shall at all times main-tai and file with the Code Authority price lists, with discountsheets, if any, showing prices of all of said machinery, attachments,and equipment and shall not iake any change in said prices exceptby filing notice of such price changes as hereinafter provided.SEC. 2. None of the prices shown in anY price lists, with discountsheets, if any. filed by any member of the Trade a herein provided,shall be changed except by filing by such member of the Trade ofnew price lists, with discount sheets, if any. When any member ofthe Trade has so filed changes in or revisions of his puliblished pricelists, with discount sheets, if any, any other member of the Trademflav so file chances in 01* revisions of his published price lists, withdiscount sheets, if any, which, if filed prior to the date when thechanges or revisions first filed become effective, shall become effectiveupon that (late.SEC. 3. Each price list, with discount sheet, if any, shall becomeeffective ten (10) days after the filing of such price list, with dis-count sheet, if any, with the Code Authority; provided, however.that the first price lists, with discount sheets, if any, filed by anymember of the Trade as above provided, shall become effective oilthe date of filing thereof.SEC. 4. The operation of the foregoing shall at all times be subjectto review and disapproval of the Administrator.ARTICLE X-M(ODIFICATIONSEi 'OIN 1. TIhis Code and all the provisions thereof are expresslvIlade subject to the right of the President, in accordance with theviosions of Section 10 (b) of the Act, from time to time to ei lcel)r m odifv a n\y order, app roval, license, rule, or regiiIation issuedUnder Tit le 1'of said Act awd sPecifically, but without limitation, to

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379the right of the President to canwcl or Imodify his approval of thisCode or amY colditionls impIosed by him HI 1p)nI his applrova1 ther'eof.Six'. 2. This Code, except a -J)Iprois1n irequiir(d by the Act,may be iodified On the basis Of ex peiec 1 le or ciangu) es In cir(1c11111-st anH Ces, 51 U 'smh modificatio1 to 1 based upon aMpplit (1 the Ad-ininistritmr anid StiCi1 Iotice aid l1warii n g as l1 sl1all specify , and tobecOmle effe' tive wn Ipprov .yd t le PresiBdent.ARTICLE IX tI--Mo o LiEiSNo provision of this Code shall be SO appliiid as to permit lolop-Oies r mono01, p1l0hiStic practices, or to eliminate, oppres, or discrimi-nate against siaLIl enterprises.ARTICLE XI I-EFFECTvE DATE OF TIIS CODETlis Code shall become effective oil the second Monday afterits approval by the President and shall be binding upon everymember of the Trade.Approved Code No. 223.Registry No. 1'199-17.0

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UNIVERSITY OF FLORIDA3 1262 08582 9199