Approved Code No. 84— Supplement No. 5 Registry No. 1414—11 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RAILWAY CAR APPLIANCES INDUSTRY A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry AS APPROVED ON FEBRUARY 9, 1934 WE DO OUR PART UNIV. OF FLLII. DOCU MENTS DEPT. 1 ' U.S. DEPOSITORY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1934 For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents This publication is for sale by the Superintendent of Documents, Government 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 Building. Boston, Mass.: 1S01 Customhouse. Buffalo, N.Y.: Chamber of Commerce Building. Charleston, S.C.: Chamber of Commerce Building. 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Approved Code No. 84 — Supplement No. 5 SUPPLEMENTARY CODE OF FAIR COMPETITION FOK THE RAILWAY CAR APPLIANCES INDUSTRY As Approved on February 9, 1934 ORDER Approving Supplementary Code of Fair Competition for the Railway Car Appliances Industry a division of the fabricated metal products manufacturing and metal finishing and metal coating industry Aq 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, and in accordance with the provisions of Section 1 of Article VI of the Basic Code for the Fabri- cated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a supplementary Code of Fair Competition for the Railway Car Appliances Industry; and hearings having been duly held thereon; and the annexed report on said Supplementary 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 Supplementary 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 Supplementary Code of Fair Competition be and it is hereby approved. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended. W. A. Harriman, Division Administrator. Washington, D.C., February 9, 1934. 39359° 376-39 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplementary Code of Fair Competition for the Railway Car Appliances Industry, a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coat- ing Industry, the hearing having been conducted thereon in Wash- ington, D.C., January 8, 1934, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Railway Car Appliances Industry, being truly representative of this division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of submitting a Supplementary Code of fair practice as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry approved by you on the second day of November 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Supple- mentary Code. Article III. This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of its Basic Code, as approved November 2, 1933, are the labor provisions of this Supplementary Code. Article IV establishes a Supplementary Code Authority consisting of five (5) members who shall be elected by the members of the Indus- try at a meeting called by the Temporary Supplementary Code Au- thority, and gives the Administrator the authority to appoint one additional member without vote and provides machinery for obtaining statistics and the administration of this Code. Article V sets forth the fair trade practices of this Supplementary Code which has been especially designed to effect fair competition in this division of the Industry. Article VI contains the mandatory provisions contained in Section 10 (b) of the Act. Article VII provides against monoplies and monopolistic practices, and recognizes that price increases be limited to actual additional increases in the seller's costs. Article VIII provides for the submission of amendments to the Supplementary Code. Article IX states the effective date of this Supplementary Code. (2) FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter — I find that: (a) Said Supplementary Code is well designed to promote the policies and purposes 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 provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminat- ing unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoid- ing undue restriction of production (except as may be temporarily re- quired), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and re- lieving unemployment, by improving standards of labor, and by other- wise rehabilitating industry. (b) Said Industry normally employs not more than 50,000 employ- ees; and is not classified by me as a major industry. (c) The Supplementary Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of the aforesaid Industry; and that said association imposes no in- equitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate 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 Supplementary Code. For these reasons, therefore, I have approved this Supplementary Code. Respectfully, Hugh S. Johnson, Administrator. February 9, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE RAILWAY CAR APPLIANCES INDUSTRY A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policies of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Railway Car Appliances Industry. Pursuant to Article VI of the Basic Code of Fair Competi- tion for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved by the President of the United States on the second day of November 1933, the provi- sions of this Supplementary Code shall be the standard of fair compe- tition for and in place of the Basic Code and shall be binding upon every member thereof. Article II — Definitions The term "Railway Car Appliances Industry", as used herein, means the manufacturing, assembling, and marketing of articles composed principally of ferrous metal specially designed for use in the construction or repair of railway cars, except by car builders and except castings, wheels, springs, draft gears, steel tires, brake beams, and articles covered under the Code of the Railway Safety Appliance Industry. The term "member of the Industry" as used herein includes but without limitation any individual,- partnership, association, corpora- tion or other form of enterprise engaged in the Industry either as an emplover or on his or its own behalf. The terms "President", "Act", and "Administrator" as used herein shall mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. The term "Basic Code" as used herein, is defined to mean the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, as approved by the President on the second day of November 1933. The term "employee" as used herein includes anyone engaged in the Industry in any capacity receiving compensation for his services, irrespeetive of the nature or method of payment of such compensation. The term "employer" as used herein includes anyone by whom any such employee is compensated or employed. The term "Association", as used herein, is defined to mean the Railway Car Appliances Association or its successor. The 'term "Supplementary Code Authority" as used herein is defined to mean the agency which is to administer this Supplementary Code as hereinafter provided. (4) The term "Federation" as used herein is defined to mean the Fabricated Metal Products Federation or its successor. Article III — Employment This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the wage, hour and labor provisions in Article III of its basic code as approved by the President November 2, 1933, including Section 1 of said Article III by which the provisions of Subsections (1), (2) and (3) of Section 7 (a) of Title I of the Act are made conditions of this Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV — Organization and Administration Section 1. During the period not to exceed 60 days following the effective date, the Supplementary Code Committee of the Associa- tion shall constitute a Temporary Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constituted within the 60-day period a Supple- mentary Code Authority consisting of 5 members, to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon 10 days' notice sent by regis- tered mail to all known members of the Industry who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following annual meeting of the Association, and thereafter members of the Supplementary Code Authority shall be elected at each annual meeting of the Association to serve until the following annual meeting. The members of the Supplementary Code Authority shall be elected in the following manner: (a) One member who shall be a member of the Industry by a major- ity vote of all known members of the Industry present in person or by proxy, each member to have one vote. (b) One member who is not a member of the Association by a major- ity vote of all known members of the Industry, present in person or by proxy, each member to have one vote. (c) Three members by a fifty-one percent vote of members of the Association, present in person or by proxy, on the basis of one vote for each member of the Association and one additional vote for each One Hundred Thousand Dollars of net sales in the Industry made by such member during the calendar year ended on the December 31st next preceding; provided, however, that no one member may cast more than thirty-three and one-third percent of the total number of votes cast. A vacancy in the membership of the Supplementary Code Authority may be filled by a majority vote of the remaining members of the Supplementary Code Authority. Provided, however, that no member of the Industry who is delin- quent in the payment of his share of the expenses of the Administra- tion of this Supplementary Code shall have the right to vote. In addition to the membership as above provided, the Administra- tor may appoint one member without vote and without expense to the Industry unless the Supplementary Code Authority agrees to bear such expense, to serve with the Supplementary Code Authority in its administration of this Supplementary Code. Such member, when appointed, shall be given reasonable notice of each meeting of the Supplementary Code Authority. Sec. 2. With a view to keeping the Administrator informed as to the observance or nonobservance of this Supplementary Code, and as to whether the Industry is taking proper steps to effectuate, in all respects, the declared policy of the National Industrial Recovery Act, each member of the Industry shall furnish to the Association for transmission in composite form to the Fabricated Metal Products Federation on forms prescribed by it duly certified reports covering employment and production statistics. The statistics covered by this section shall conform with those which may be required by the Administrator. Sec. 3. — The Association is hereby constituted the agency to collect and receive such reports. Sec. 4. Neither the Association nor the Fabricated Metal Products Federation nor its successors shall disclose any individual report, but may make and distribute composites and averages. Sec. 5. To further effectuate the policies of the Act, the Supple- mentary Code Authority shall administer this Supplementary Code and shall hold itself in readiness to assist and keep the Administrator fully advised and to meet with the Administrator's representative from time to time as requested; to consider and study any suggestions or proposals presented upon behalf of the Administrator or any member of the Industry regarding the operation, observance, or administration of this Supplementary Code. Sec 6. There shall be no inequitable restrictions imposed on ad- mission to membership in the Association and the Association shall submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made thereto, to- gether with such other information as to membership, organization, and activities as the Administrator may deem necessary to effectuate the purposes of the Act. Sec. 7. If the Administrator, after such hearings and notice as he may deem proper, finds that the Supplementary Code Authority is not truly representative of the members of the Industry or does not in other respects comply with the provisions of the Act there shall be a reasonable and appropriate modification of the method of selection of the Supplementary Code Authority by the members of of the Industry, which .shall not become effective until approved by the Administrator. Sec. 8. When formal complaint is made to the Supplementary Code Authority by any member of the Industry that any of the provisions of this Supplementary Code have been violated by any employer or group of employers, the Supplementary Code Authority may make or cause to be made such investigation as is necessary to establish the facts pertaining to the complaint and attempt to adjust the same and if unsuccessful shall report the same to the Adminis- trator, provided, however, the Supplementary Code Authority shall not knowingly take any action in violation of any lawful rules and regulations promulgated by the Administrator relating to the administration of this Supplementary Code. Sec. 9. Nothing contained in ,this Supplementary Code shall constitute the members of the Supplementary Code Authority partners for any purpose; nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of the Supplementary- Code Authority. Nor shall any member of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his wilful misfeasance or nonfeasance. Sec. 10. All members of the Industry shall be entitled to partici- pate in and share the benefits of the activities of the Supplementary Code Authority; shall be entitled to vote in the selection of those members of the Supplementary Code Authority described in sub- paragraphs (a) and (b) of Section 1 of this Article IV; and shall pay their reasonable share of the expenses of the administration of this Supplementary Code, such reasonable share to be determined by the Supplementary Code Authority on the basis of net volume of sales in the Industry during the calendar year ended on the December 31st next preceding. Whenever a sales company substantially owns or is substantially owned by a manufacturing company, both the sales company and the manufacturing company shall be regarded as one entity for the purposes of this Supplementary Code. Sec 11. 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 investigation 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. Article V — Trade Practice Rules The following acts as described shall constitute unfair methods of competition in lieu of the Trade Practice provisions of the Basic Code. Any member of the Industry who shall directly or indirectly, through any officer, employee, agent, or representative, use or employ any of such unfair methods of competition shall be guilty of a viola- tion of this Supplementary Code. A. The sale of any product below the cost of such product to the individual member of the Industry. In determining all overheads, selling, collection, distribution, and delivery expense, the percentages applicable to the year 1926 may be used if lower than current figures. This rule A shall not apply to products sold for experimental or test purposes, nor to samples, nor to products sold for repair purposes in small quantities. Selling below cost to meet existing competition shall not be deemed a violation of this rule A. B. To imitate or simulate the trade mark or trade name of a competitor's product to such a degree as to deceive or have a tendency to deceive customers. C. The false marking or branding of any product of the Industry, which has the tendency to mislead or deceive customers or prospective customers, whether as to grade, quality, quantity, substance, char- acter, nature, origin, size, finish, or preparation of any product of the Industry. D. The causing or knowingly permitting to be published any inten- tionally and materially false or incorrect statement by way of adver- tisement, whether concerning the grade, quality, quantity, substance, character, nature, origin, size, finish, or preparation of any product of the Industry. Article VI — Modification Section 1 . This Supplementary Code and all the provisions thereof are expressly made subject to the right of the President, in accordance with provisions of subsection (b) of Section 10 of the Act, from time to time, to cancel or modify any order, approval, license, rule, or regu- lation issued under said Act. Sec 2. No person consenting to this Supplementary Code shall be held to have consented to any modification hereof. Article VII — Monopolies Section 1. No provision of this Supplementary Code shall be applied so as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Sec 2. This Supplementary Code shall not affect patent rights. Sec 3. Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs should be delayed, but when made, such increases should, so far as practicable, be limited to actual additional increases in the seller's costs. Article VIII — Amendments — Termination This Supplementary Code, except as to provisions required by the Act, may be amended or modified from time to time, such amend- ments and modifications to be based upon application by the Sup- plementary Code Authority or representative members of the Indus- try, to the Administrator and such notice and hearing as he shall specify and to become effective as part of this Supplementary Code on approval by the Administrator. This Supplementary Code shall continue in effect until June 16, 1935, unless prior thereto Title I of the National Industrial Recovery Act ceases to be in effect. Article IX — Effective Date This Supplementary Code shall become effective on 12:01 A.M. on the first Monday after the fourth day after its approval by the President. Approved Code No. 84, Supplement No. 5. Registry No. 1414-11. o UNIVERSITY OF FLORIDA 3 1262 08855 6633