-V Approved Code No. 347— Supplement No. 24 Registry No. 1107—03 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ROLLER AND SILENT CHAIN INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON JULY 5, 1934 UNiV. OF FL Lli nnriil 4ENTS DEPT U.S. DEPOWTORY UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For Bale 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, lU.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. 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Approved Code No. 347 — Supplement No. 24 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ROLLER AND SILENT CHAIN INDUSTRY As Approved on July 5, 1934 ORDER Sttpplementart Code of Fair Competition for the Roller and Silent Chain Industry A division of the machinery and allied products industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recoverj^ Act, approved June 16, 1933, for approval of a Supple- mental Code of Fair Competition for the Roller and Silent Chain Subdivision of Machinery and Allied Products Industry, and hear- ings 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 President, 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 purj^oses of said Title of said Act; and do hereby order that said Supplemental Code of Fair Competition be and it is hereby approved; provided, however, that the provisions of Section (a) of Article VIII, insofar as they prescribe a waiting period between the filing with the Code Authority (or such agency as may be designated in the Supplemental Code) and the effective date of price lists, as originally filed and/or revised price lists or revised terms and condi- tions of sale, be and they hereby are stayed pending my further order. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Barton W. Murray, Acting Division Administrator. Washington, D.C, Jul'y 5, 1934. T2194'— 829-21— 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Com- petition for the Roller and Silent Chain Subdivision of Machinery and Allied Products Industry', a public hearing on which was held in Washington, D.C., on December 21, 1933. The public hearing was conducted in full accordance with the provisions of Title I of the National Industrial Recovery Act. GENERAL STATEMENT The Roller and Silent Chain Subdivision, being truly representa- tive of the manufacturers of the products defined in Article II of the Supplemental Code, has elected to formulate and submit a Sup- plemental Code of Fair Competition as provided in the second para- graph of Article I in the Code of Fair Competition for the Machin- ery and Allied Products Industry, approved by you on the seven- teenth day of March, 1934. The Subdivision includes the manufacture for sale of sprocket chain of steel, or other metals excepting malleable iron, of the types generally known as inverted tooth or silent chains, finished roller and rollerless-bushing chains (but not those commonly known as semi-finished chains), block chains having either cold drawn or laminated center blocks, and parts thereof, and such sprockets there- for as are manufactured by the manufacturers of said chains, and includes all those engaged in such manufacture for sale. ECONOMIC EFFECT Total estimated invested capital has remained practically constant ranging between $12,350 000 and $12,860,000 for \\^^ years 1928-1933. This Subdivision employed approximately 3,5G2 persons including office employees in 1929. Estimated annual sales in 1929 amounted to $15,952,000 and declined to approximately $3,809,000 in 1932 or 76 per cent. Sales for the year 1933 are estimated as $4,469,000 which represents a 17 per cent increase over the previous year. Factory employment in 1929 amounted to approximately 3,184 workers; since then employment decreased to approximately 856 workers in the first quarter of 1933 or 73 per cent. After this period employment increased steadily to 1,423 factory workers as of October 15, 1933 or 66 per cent. Man-hours show a trend similar to employment. For 1929 esti- mated man-hours amounted to approximately 175,120 and decreased to a minimum of 24,310 in the first quarter of 1933 or 86 per cent; after this period man-hours have increased constantly to 48,951 as (2) of October 15, 1933, or 101 per cent. The present man-honr reqiiire- ments (as of October 15, 1933) are based on a 34.4 hour week; conse- quently the 40-hour week provided in the code will probably cause little further employment in this Subdivision. The wao:e provisions for the Subdivision, which is operating under the Code of the Machinery and Allied Products Industry, provide that emploj'ees engaged in plant operations shall be paid as follows: (1) in cities of more than 50,000 population and tlieir immediate vicinity, 40 cents per hour; (2) in cities of more than 10,000 but not more than 50,000 population and their immediate vicinity, which cities are not in the immediate vicinity of a city of more than 50,000 population, 38 cents per hour; (3) in cities of 10,000 population or less and their immediate vicinity, which cities are not in the imme- diate vicinity of a city of more than 10,000 population, 36 cents per hour, except that employees engaged in plant operations in all local- ities in the states of Virginia, North Carolina, South Carolina, Georgia, Florida, Tennessee, Alabama, INIississippi, Arkansas, Lou- isiana, Texas, and Oklahom.a, shall be paid not less than 32 cents jDcr hour. Allien females do substantially the same work as males or replace males, they shall receive the same pay. However, no female em- i)loyee shall be paid less than 87i/2% of the proper rate for the ocality in which employed. Office boys and girls and apprentices shall be paid not less than 80% of the minimum wage. Employees other than those engaged in plant operations shall re- ceive not less than $15.00 per week. Distributions of the number of factory workers receiving classi- fied rates in the specified areas are not available. Consequently, it is only possible to estimate the approximate number of factory work- ers who will receive the benefit of the proposed minimum hourly rates, regardless of location, on the basis of the number of factory workers receiving less than the designated hourly rates as of June 15, 1933. Estimated number of factory icorkers receiving less than designated hourly rates Proposed minimum hourly rates Distribution of factory workers receiving less than the mini- mum regardless of location 40 cents Cother U.S.) 38 cents (other U.S.) 36 cents (other U.S.) 32 cents (South) Based on the distribution as of June 15, 1933, and on the specified percentages of the number of factory workers receiving less than the designated rates shown in the above table, the adoption of the proposed minimum rates will probably cause an increase in factory payrolls. The estimated increase as of June 15, 1933, regardless of location of the workers, will probably, under the most favorable conditions, not exceed 5.0 per cent assiiminjGf only npward adjustment in the brackets below the 40-cent minimum and no change in man- hour requirements. RESUME OF SUPPLEMENTAL CODE Article I states the purpose of the Supplemental Code. Article II accurately defines specific terms applicable to the Sub- division as used in this Supplemental Code. Article III provides for the adoption of the employment pro- visions of the Code of Fair Competition for the Machinery and Allied Products Industry, as approved by you, and as from time to time amended. Article IV provides for the adoption of Articlas II, VI, VIII and IX of the Code of Fair Competition for the Machinery and Allied Products Industry, in accordance with the conditions of this Article governing their adoption. Article V provides for the establishment of a Code Authority and defines its powers and duties. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII provides that no products of the Subdivision shall be sold or offered for sale below a reasonable cost when the Code Authority determines that an emergency exists. Article VIII provides for methods of setting up, revising and filing price lists and discount sheets and terms of sale and payment. Article IX sets forth trade practices for the Subdivision. Article X states that no provision of this Supplemental Code relating to pricing and marketing shall apply to export sales. Article XI provides that this Supplemental Code and all the pro- visions thereoi are expressly made subject to the right of the Presi- dent, in accordance with Subsection (b) of Section 10 of the Act, from time to time to cancel or modify any order, approval, license, rule or regulation issued under said Act. Provision is also made that modifications may be submitted by the Code Authority to the Admin- istrator for approval. Article XII. No provision of this Supplemental Code shall be so applied as to permit monopolies, or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. Article XIII states the effective date of this Supplemental Code. FINDINGS The Assistant 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 : I find that : (a) Said Supplemental Code is well designed to promote the poli- cies 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 organiza- tion 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 eliminating unfair competitive practice, 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 reduc- ing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivision normally employs not more than 50,000 em- ploj'ees; 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 witliout 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 Subdivision; and that said association imposes no inequitable restrictions on admission to membership tlierein. (d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. (e) The Supplemental Code is not designed to and will not elimi- nate or oppress small enterprises and vv'ill 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, provided that certain provisions relating to price publication are stayed as stated in the Order. Respectfully, Hugh S. JoiiNsoif, A dministrator. July 5, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE ROLLER AND SILENT CHAIN INDUSTRY A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Recov- ery Act. the following provisions are established as a Supplemental Code 01 Fair Competition for the Roller and Silent Chain Sub- division of the Machinery and Allied Products Industry, and to- gether with the Code of Fair Competition of 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 ^^AppJicani " means the Association of Roller and Silent Chain Manufacturers, a trade organization, all members of which are en- gaged in the manufacture for sale of the products of the Roller and Silent Chain Subdivision of the Machinery and Allied Products Industry. " Industr]/ " means the Machinery and Allied Products Industry, as defined in its Code of Fair Competition as approved by the Presi- dent, and as such definition may from time to time be amended. " Subdivision " means this Roller and Silent Chain Subdivision of Machinery and Allied Products Industry as defined and set forth in paragraph 28 of Article II of the Code of Fair Competition for the Machinery and Allied Products Industry as follows : " Roller and Silent Chain Subdivision means the manufacture for sale of sprocket chain of steel, or other metals excepting malleable iron, of the types generally known as inverted tooth or silent chains, finished roller and rollerless-bushing chains (but not those com- monly known as semi-finished chains), block chains having either cold drawn or laminated center blocks, and parts thereof, and such sprockets therefor as are manufactured by the manufacturers of said chains, and includes all those engaged in such manufacture for sale." " Code " means the Code of Fair Competition for the Machinery and Allied Products Industry, as approved by the President March 17, 1934, and as from time to time amended. " Person " means a natural person, a partnership, a corporation, an association, a trust, a trustee, 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 any one who is employed in the subdivision b}^ any such employer. (G) " 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 for this subdivision as provided by the Code and by this Supplemental Code. " Groxi'p Code Authority " means the Code Authority for any group or product classification within this subdivision, constituted under the authority of Article V of this Supplemental Code. Article III — EiiPLOTMENT Provisions The following Articles of the Code, viz : Article III, " "Working Hours " ; Article IV, " Wages " ; and Article V, " General Labor Pro^asions ", 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 of Other Provisions of Code The following Articles of the Code, viz : Article II, " Definitions ", Article VI, " Administration ", to the extent that they shall be applicable to this Supplemental Code as such or as it may hereafter be administered as an autonomous Code ; Article VIII, " Modifica- tions and Termination ", and Article IX, " Withdrawal ", are hereby made a part of this Supplemental Code with the same effect as if they were written into this Supplemental Code. Article V — Administration A Code Authority is hereby constituted to facilitate the enforce- ment of this Suj^plemental Code. (a) During the period, not to exceed gixty days, following the effective date of this Code, tlie Code Committee of the Applicant shall constitute a temporary Code Authority. This committee shall consist of eight members; and the Administrator, in his discretion, may appoint one additional member (without vote and without ex- pense to the Subdivision). (b) To permit representation of emploj^ers who are not members of the Applicant, the temporary Code Authority shall, within sixty day3 after this Supplemental Code becomes effective, set up a per- manent Code Authority by calling a meeting for this purpose of all known employers in the Subdivision. Said meeting shall be con- ducted as follows: 1. Each employer shall have one vote which may be in person or by written proxy. 2. Procedural rules shall be adopted for Code Authority which shall (among other provisions) prescribe the number of industry members thereof which shall be not le^s than three nor more than nine. The favorable vote of not less than two-thirds of the em- 8 plovers present in person or by proxy shall be necessary for the adoption of any procedural rule. 3. ]\rembers of Code Authority shall then be elected. One mem- ber of the Code Authority may be elected by the employers of this Subdivision who are not members of the Applicant if there be any. The Administrator in his discretion may appoint one additional member of Code Authority without vote and without expense to the Subdivision. Any emi)loyor in this Subdivisicm shall be entitled to share in the benefits of the Code Authority, and participate in any endeavors of this Subdivision in the ])reparation of any revisions of, or additions or supplements to this Code, by payino; his proper pro rata share of the reasonable cost of creatin