Approved Code No. 347 — Supplement No. 4 Registry No. 1502 — 03 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE SMALL LOCOMOTIVE MANUFACTURING INDUSTRY AS APPROVED ON MAY 5, 1934 WE DO OUR PART u : — 7-:- HY - J 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. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111.: Suite 1706, 201 North Wells Street. Cleveland. Ohio : Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. 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Approved Code No. 347 — Supplement No. 4 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE SMALL LOCOMOTIVE MANUFACTURING INDUSTRY As Approved on May 5, 1934 ORDER Supplementary Code of Fair Competition for the Small Locomotive Manufacturing Industry a division of the machinery and allied products industry An application having been duly made pursuant to and in full compliance with provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Supple- mental Code of Fair Competition for the Small Locomotive Manu- facturing Subdivision of Machinery and Allied Products Industry, and hearings having been duly held thereon and the annexed report on said Supplemental 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 Supplemental 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 Supplemental Code of Fair Competition be and it is hereby approved on condition that the Associated Builders of Small Loco- motives shall amend its Articles of Association to the satisfaction of the Administrator within the time set forth in the Order of the Administrator, dated April 26, 1934, which order extended the original period of thirty (30) days set forth in the Executive Order of March 17, 1934, approving the Basic Code of Fair Competition for the Machinery and Allied Products Industry. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glancy, Division Administrator. Washington, D.C., May 5, 1934. 56978° 544-28 34 (l) REPORT TO THE PRESIDENT The President, The White House, Sir : This is a report on the Supplemental Code of Fair Competi- tion for the Small Locomotive Subdivision of the Machinery and Allied Products Industry, public hearing having been conducted thereon in Washington, D.C., December 21, 1933, in accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Associated Builders of Small Locomotives being truly repre- sentative of this Subdivision of the Machinery and Allied Products Industry, have submitted a Supplemental Code of Fair Competition to the Basic Code for the Machinery and Allied Products Industry approved by you March 17, 1934. The Small Locomotive Industry is a capital goods industry being engaged in the manufacture for sale of locomotives of 1200 horse power or less, and/or parts thereof. ECONOMIC EFFECT This Subdivision suffered to a very great extent from the effects of the depression. Production dropped from $6,714,000 in 1929 to about $1,009,000 in 1933, a decline of 85 per cent. Employment suffered also declining from a total of 1318 persons in 1929 to 429 in June, 1933, a decrease of 67.4 per cent. The average hours per week per factory wage earner decreased from 48.8 hours in June, 1929, to 28.4 hours in October, 1933 a loss of 41.8 per cent. The average rate per hour for factory workers was 61.2 cents in June, 1929, 48.9 cents in June, 1933, and 57.3 cents in October, 1933, showing decreases from June, 1929, of 20.1 per cent in June, 1933, and 6.4 per cent in October, 1933. Average weekly earnings for factory workers declined from $29.90 in June, 1929, to $16.28 in October, 1933, or a decrease of 45.6 per cent. The President's Reemployment Agreement effected improvements in both factory employment and payrolls. The Code should increase factory employment about 8.8 per cent and factory payrolls approxi- mately 2.7 per cent over the corresponding figures of June, 1933. FINDINGS The Deputy Administrator in his final report to me on said Supplemental Code having found as herein set forth and on the basis of all the proceedings in this matter: (2) I find that : (a) Said Supplemental 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 organi- zation 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 super- vision, 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 temporarily 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 Subdivision normally employs not more than 50,000 employees; and is not classified by me as a major industry. (c) The Supplemental 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 1 , 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 Subdivision of the Industry ; and that said group imposes no inequitable restrictions on admission to membership therein. (d) The Supplemental Code is not designed to and will not per- mit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elimi- nate 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 Supplemental Code. For these reasons, therefore, I have approved this Supplemental Code on condition that the Associated Builders of Small Locomotives shall amend its Articles of Association to the satisfaction of the Ad- ministrator within the time set forth in the Order of the Administra- tor, dated April 26, 1934, which order extended the original period of thirty (30) days set forth in the Executive Order of March 17, 1934, approving the Basic Code of Fair Competition for the Machinery and Allied Products Industry. Respectfully, Hugh S. Johnson, Administrator, Mat 5, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE SMALL LOCOMOTIVE MANUFACTURING SUB- DIVISION A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supple- mental National Industrial Recovery Code for the Small Locomotive Manufacturing Subdivision of the Machinery and Allied Products Industry, and taken together with the National Industrial Recovery Code of the Machinery and Allied Products Industry, to which it is a supplement, shall be the standard of fair competition for this Subdivision and shall be binding on each employer therein. Article II — Definitions "Applicant " means the Associated Builders of Small Locomotives, a trade organization, all members of which are engaged in the manufacture for sale of the products of the Small Locomotive Manu- facturing Subdivision of the Machinery and Allied Products Indus- try, which organization is truly representative of this Subdivision. " Industry " means the Machinery and Allied Products Industry as defined in its National Industrial Recovery Code as approved by the President, and as such definition may from time to time be amended. " Subdivision " means this Small Locomotive Manufacturing Sub- division of the Machinery and Allied Products Industry as defined and set forth in Article II of the National Industrial Recovery Code of the Machinery and Allied Products Industry, as follows : " ' Small Locomotive Subdivision ' means the manufacture for sale and selling of locomotives of 600 horsepower or less, and/or parts thereof, and includes all those engaged in such manufacture for sale : locomotives of more than 600 horsepower, but not to exceed 1200 horsepower capacity and/or parts thereof may be manufactured for sale and sold by either this Subdivision or the Locomotive Manufac- turing Subdivision under this Code; provided, however, that such locomotives propelled by electric motors, including parts thereof for use therein, may be manufactured for sale and sold either by mem- bers of this Subdivision under this Code or by members of the Elec- trical Manufacturing Industry under its Code. ' Horsepower ' means the figure arrived at by multiplying tractive effort (taken at that speed at which maximum horsepower will be produced) by the speed in miles per hour and dividing that result by 375." " Code " means the National Industrial Recovery Code of the Ma- chinery and Allied Products Industry as approved by the President and as from time to time amended. (4) " Person " means a natural person, a partnership, a corporation, an association, a trust, a trustee in bankruptcy, a receiver or other entity. " Employer " means any person engaged in this Subdivision of the Industry either on his own behalf or as an employer of labor. " Employee " means anyone who is employed in the Subdivision by any such employer. " The Act " means Title I of the National Industrial Recovery Act. " The President " means the President of the United States. " The Administrator " means the Administrator for Industrial Recovery. " Basic Code Authority " means the Code Authority for the Ma- chinery and Allied Products Industry as constituted by the Code. " Code Authority " means the Code Authority constituted by this Subdivision, as provided by the Code and by this Supplemental Code. " Group Code Authority " means the Code Authority for any group or classification of products within this Subdivision, consti- tuted under the authority of Article V of this Supplemental Code. Article III — Adoption of Employment Provisions or Code The following Articles of the Code, viz:- Article III, "Hours"; Article IV, " Wages " ; and Article V, " General Labor Provisions ", are hereby made a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Code. Article IV — Adoption or Other Provisions or Code The following Articles of the Code, viz : Article VI, "Administra- tion," to the extent that it shall be applicable to the administration of this Supplemental Code as such or as it may hereafter be admin- istered as an autonomous Code ; Article VIII, " Modifications and Termination " ; Article IX, " Withdrawal " ; Article X, " Monop- olies"; and Article XI, "Effective Date" are hereby made a part hereof and with the same effect as if they were written into this Supplemental Code. Article V — Administration x (a) A Code Authority for this Subdivision is hereby constituted to administer, supervise and facilitate the enforcement of the Code and of this Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. This Code Authority is to consist of — (1) The Executive Committee of Associated Builders of Small Locomotives consisting of not less than three (3) nor more than seven (7) members. (2) One additional member to be elected in any fair manner with the approval of the Administrator by employers in this Subdivision entitled to vote thereon as hereinafter provided but who are not 1 See paragraph 2 of order approving this Code. members of the Applicant, if so desired by such non-members. The administrator may at his discretion appoint one additional member (without vote and without expense to the Industry). (b) Any employer in this Subdivision shall be eligible for mem- bership in the Associated Builders of Small Locomotives. (c) The employers within this Subdivision, at a meeting called for that purpose within sixty (60) days after the effective date, may adopt rules and regulations to govern the activities and procedures of Code Authority which are not inconsistent with the provisions of the Code of the Machinery and Allied Products Industry or of this Supplemental Code or of the Act. They may also authorize the Code Authority to employ such personnel as it may deem neces- sary. Such action may be amended from time to time by a vote of the employers within this Subdivision taken in the manner herein- after provided. (d) Any employer in this Subdivision shall be entitled to vote at meetings of employers and, subject to Subsection (2) of Subdivi- sion (a) of this Article, at the election of the one additional member of Code Authority and share in the benefits of the activities of Code Authority and may participate in any endeavors of Code Authority in the preparation of any amendments or revisions of or additions or supplements to this Supplemental Code, by paying or agreeing to pay, as and when assessed, his or its proper pro rata share of the reasonable cost of creating and administering this Supplemental Code, as determined by Code Authority. Each employer shall pay his or its proper pro rata share of such cost as so determined. (e) At meetings of employers, each employer shall have the right to cast one vote and the concurring vote of a majority of the employ- ers present in person or by proxy shall, except as herein otherwise provided, be necessary to carry any question. (f) Employers in this Subdivision having a common interest and common problems may be grouped by Code Authority for adminis- trative purposes. There shall be a Group Code Authority approved or appointed by Code Authority for each such Group. (g) If formal complaint is made to Code Authority that pro- visions of this Supplemental Code have been violated by any em- ployer, Code Authority or the proper Group Code Authority may cause such investigation or audit to be made to the extent permitted by the Act, as may be necessary. If such investigation is made by Group Code Authority, it shall report the results of such investiga- tion or audit to Code Authority for action. Article VI — Trade Practices (1) No employer shall secretly directly or indirectly 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 an employer 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. (2) No employer shall publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, nor shall any member in any way misrepresent any goods (including but without limitation its use, trademark, 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. , (3) No employer shall publish or circulate unjustified or un- warranted threats of legal proceedings which tend to have the effect of harrassing competitors or intimidating their customers. Article VII — Modifications (a) As provided by Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. (b) Any amendments, additions, revisions, or supplements of this Supplemental Code, proposed by Code Authority and authorized by the affirmative vote of two-thirds of the employers shall be in full force and effect upon approval by the Administrator. The eligibility requirements, method, and effect of such voting shall be the same as provided by Article V hereof. Article VIII — Withdrawal As is provided by Article IX of the Code, upon thirty (30) days' notice to Basic Code Authority and to the Administrator, this Sub- division may, upon the affirmative vote of not less than two-thirds of the employers within this Subdivision, withdraw from the juris- diction of the Basic Code Authority. The eligibility requirements, methods and effect of such voting shall be the same as provided by Article V hereof. After and in the event such withdrawal is ac- complished, this Supplemental Code, together with the provisions of the Code, shall become and be the sole Code governing this Sub- division, and^Code Authority shall, for this Subdivision, become and be the sole Code Authority, and shall perform all the functions with respect thereto, including the functions now imposed upon the Basic Code Authority. Article IX — Monopolies Applicant imposes and shall impose no inequitable restrictions on membership therein. The Supplemental Code presented by it is not designed to promote monopoly, and shall not be so construed or applied as to oppress or eliminate small enterprises or discrimi- nate against them, and is designed to effectuate the policy of the Act. Article X — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval by the President and shall not be otherwise effective. Approved Code No. 347 — Supplement No. 4 Registry No. 1502-03. O 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/supplementarycod2505unit isrrv of Florida ■fUllfi