Approved Code No. 347 — Supplement No. 5 Registry No. 1399—47 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WIRE MACHINERY INDUSTRY (A Division of the Machinery and Allied Products Industry) AS APPROVED ON MAY 9, 1934 WE DO OUR PART UNIV. OF FL Lli. / • U.S. DEPOSITS - UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1931 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. 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Approved Code No. 347 — Supplement No. 5 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE WIRE MACHINERY INDUSTRY As Approved on May 9, 1934 ORDER Supplementary Code of Fair Competition for the Wirh Machinery 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 Indus- trial Recovery Act, approved June 16, 1933, for approval of a Supplemental Code of Fair Competition for the Wire Machinery 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 Presi- dent, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise; do hereby incorporate by reference said an- nexed report and do find that said Supplemental Code complies in all respects with the pertinent provisions and will promote the pol- icy 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. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : A. R. Glancy, Division Administrator. Washington, D.C., May 9, 1934. 57802° 544-50 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir: This is a report on the Supplemental Code of Fair Competi- tion for the Wire Machinery 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. Every person who filed a request for an appearance was freely heard in public and all statutory and regulatory requirements were com- plied with. GENERAL STATEMENT The Wire Machinery Builders Association, being truly repre- sentative of this subdivision of the Machinery and Allied Products Industry, has elected to avail itself of the option of submitting a Supplemental Code of Fair Competition, as provided in paragraph (2), Article I of the Basic Code for the Machinery and Allied Products Industry approved by you on the seventeenth day of March, 1934. This Subdivision represents a part of the capital goods industry, manufacturing and selling machinery for drawing wire and rod and the fabrication of wire and rod products. ECONOMIC EFFECT The estimated number of persons employed in this subdivision of the industry in 1929 amounted to approximately 1.784. The number of factory workers in 1929 were estimated and amounted to 1,022 workers. Factory employment declined here- after to a minimum of 355 workers in 1933 or 78 per cent. Total annual sales, based on estimates furnished with the code application and representing approximately 80 per cent of the total dollar volume of this subdivision of the industry in 1932, declined from $0,171,000 in 1929 to $940,000 in 1932, or 85* per cent. Average hours worked per factory worker amounted to 52.7 hours in 1929 and declined to 35.0 hours in 1933, or 34 per cent. In 1920 total estimated man-hours amounted to 85,479; they de- clined constantly to a minimum of 12,425 man-hours in 1933, or 85.5 per cent. If man-hour requirements as of 1933 remain unchanged, the 40-hour provision will cause little further employment in this subdivision of the industry. The minimum hourly rates in the approved Basic ('ode incorporate one differentia] for the South and three city population differentials for all other sect inn-, of the I 'in ted States a- follows: Over 50,000 population — 40 cents per hour Over lo.ooo to 50,000 population 38 cents per hour 10,000 population ami under — 30 cents per hour South- -".2 cents per hour (2) In addition to the minimum wage rates shown above, the Basic Code provides that women engaged in substantially the same work as men shall receive the same rate of pay as such men employees; that the minimum wage for women employees engaged in plant opera- tions shall be not less than 87.5 per cent of the proper rate for the locality in which employed as specified ; and that the minimum in the South shall be not less than 32 cents per hour. A distribution showing the number of factory workers receiving classified hourly rates is not available, consequently the number of factory workers receiving less than the specified minimum rates pro- vided in the Basic Code cannot be estimated, nor the effect which the minimum rates will have on the payrolls of this subdivision of the industry. RESUME OF THE SUPPLEMENTAL CODE Article I states the purpose of the Supplemental Code. Article II accurately defines specific terms employed in this Sup- plemental Code. Article III. The Labor provisions of the Basic Code for the Ma- chinery and Allied Products Industry as approved March 17, 1934 are incorporated by reference as the labor provisions of this Supple- mental Code. Article IV adopts the relevant portions of Article VI, "Adminis- tration " ; and Articles VlII, " Modifications and Termination ", and IX, " Withdrawal " of the Basic Code for the Machinery and Allied Products Industry, as approved March 17, 1931. Article V establishes a Code Authority consisting of six (6) mem- bers, five (5) of whom shall be represented by the Executive Com- mittee of the Wire Machine^ Builders Association, and one to be elected by the non-members, if any, of the Wire Machinery Builders Association. The Administrator may in his discretion appoint one additional member, (without vote and without expense to the Sub- division). Together with the applicable provisions of the Basic Code, mechanism is provided for the administration of this Supple- mental Code. Article VI provides for an accounting system and methods of cost finding and/or estimating. Article VII sets forth the unfair trade practices which have been especially designed to offset unfair competition in this Subdivision. Article VIII contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for the submission of proposed amendments to the Supplemental Code. Article IX provides for the withdrawal of this Subdivision from jurisdiction of the Basic Code and for the continued functioning of this Subdivision as an individual industry under its own code. Article X stipulates that there shall be no inequitable restrictions and provides against monopolies. Article XI gives the effective date of this Supplemental Code. FINDINGS The Deputy Administrator in his final report to me on said Sup- plemental Code having found as herein set forth and Xa the basis of all the proceedings in this matter : 4 I find that: (a) Said Supplemental Code is well designed to promote th© 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 organ- ization of industry for the purpose of cooperative action among the trade groups bj inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promot- ing the fullest possible utilization of the present productive capac- ity of industries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the con- sumption of industrial and agricultural products through increas- ing 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, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly represen- tative of the aforesaid subdivision of the industry; and that said association imposes no inequitable restrictions on admission to mem- bership 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 elim- inate 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. Respectfully, Hugh S. Johnson, A dminh trato r. May 9, 1934. SUPPLEMENTAKY CODE OF FAIR COMPETITION FOR THE WIRE MACHINERY INDUSTRY, A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY] Article I — Purposes To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supple- mental Code for the Wire Machinery Subdivision of the Machinery and Allied Products Industry, and together with the Code of Fair Competition of the Machinery and Allied Products Industry shall be the standard of fair competition for this Subdivision, and shall be binding on every employer therein. Article II — Definitions "Applicant " means the Wire Machinery Builders Association, a trade organization, which organization is truly representative of this Subdivision, all members of which are engaged in the manu- facture for sale of the products of the Wire Machinery Subdivision of the Machinery and Allied Products Industry. " 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 bo amended. " Subdivision " means this Wire Machinery Subdivision of the Machinery and Allied Products Industry as defined and set forth in paragraph 38 of Article II of the National Industrial Recovery Code of the Machinery and Allied Products Industry as follows : " Wire Machinery Subdivision " means the manufacture for sale of machinery for drawing wire and rod and the fabrication of wire and rod products. This includes wire and rod drawing machinery and accessories, shaping and flattening mills, machinery for stranding, cabling, etc., cutting-off, pointing, straightening, amoring, bending, forming, cold upsetting, cold heading, etc., and in general all ma- chinery used in the working, processing or finishing of articles made from wire or rod in its raw state, and parts thereof, and includes all those engaged in such manufacture for sale. Employers not other- wise engaged in this Subdivision may manufacture for sale and sell machinery for cold upsetting and heading, and finishing machines for the product thereof, under the provisions of the Code of another industry and not under the provisions of this Supplemental Code. The foregoing definition shall not permit the manufacture for sale under this Supplemental Code of electrical products included within the scope of the Electrical Manufacturing Industry as defined in the Code of Fair Competition for said Industry, except where such electrical products are sold as a part of the products of this Subdi- (5) vision and are not sold as separate electrical products in competition with similar products included within the scope of the Electrical Manufacturing Industry as defined in the Code of Fair Competition for said Industry; provided, however, that any employer hereunder may manufacture and sell under this Supplemental Code any spare and/or replacement parts of any such electrical products for use with products defined hereunder, which were originally manufac- tured and sold by him. When carried on at the point of installation, the work of installing, erecting, rebuilding and/or servicing of the products of the Subdi- vision, (including attachments, accessories and/or replacement and repair parts therefor, included within the definition of the Subdi- vision) shall be subject to the provisions of this Supplemental Code, only when performed by the employer hereunder selling such prod- ucts or by a company affiliated therewith. " Code " means the National Industrial Recovery Code of the Machinery and Allied Products Industry, as approved by the Presi- dent 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 the Subdivision, either on his own behalf or as an Employer of labor. " Employee " means any one who is employed in this 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 Machinery 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. " Group Code Authority " means the Code Authority for any group or product classification within this Subdivision. Article III — Employment Provisions The following Articles of the Code, viz: Article III. "Working Hours"; Article IV, "Wages"; and Article V. "General Labor Provisions ", are hereby mad" a part of this Supplemental Code, with the same effect as if they were written into this Supplemental Coda Article IV — Adoption ok Other Provisions of C< de The following Articles of the Code, viz; Article VI, "Adminis- tration ", to the extent that it shall be applicable to the administra- tion of this Supplemental Code a- such or as it may hereafter bo administered as an autonomous Code; Article VIII. Modifications and Termination", and Article IX. "Withdrawal", are hereby adopted and made a part of this Supplemental Code with the same effect as if they were written into this Supplemental Code. Article V — Administration (a) The Code Authority for the Subdivision shall consist of: (1) The Executive Committee of the Applicant, consisting of five members. (2) One additional member may be elected in any fair manner with the approval of the Administrator, by employers in this Sub- division not members of the Applicant, if so desired by such nonmembers. (3) The Administrator may, in his descretion, appoint one addi- tional member, (without vote and without expense to the Subdivision ) . (b) Any employer in this Subdivision shall be eligible for mem- bership in the Applicant. (c) In order that the Code Authority shall at all times be truly representative of the Subdivision and in other respects comply with the provisions of the Act, the Administrator ma}^ provide such hear- ings as he may deem proper; and thereafter if he shall find that the Code Authorhry is not truly representative or does not in other respects comply with the provisions of the Act, may require an ap- propriate modification in the method of selection of a Code Authority, or any Group Code Authority. (d) Any employer in this Subdivision shall be entitled to vote sub- ject to the provisions of section (a) hereof at the election of and share in the benefits of the activities of the Code Authority and may participate in any endeavors of the Code Authority in the prepa- ration of any revisions of, or additions or supplements to this Sup- plemental Code by paying his proper pro-rata share of the reason- able cost of creating and administering it, as determined by the Code Authority. (e) Employers in this Subdivision having a common interest and common problems, may be grouped by Code Authority for administrative purposes. There shall be a group Code Authority approved or appointed by Code Authority for each such group. (f) If formal complaint is made to Code Authority, that provi- sions of this Supplemental Code have been violated by any employer, the Code Authority or the Group Code Authority, may to the extent permitted by the Act cause such investigation or audit to be made, as may be deemed necessary. If such investigation is made by Group Code Authority, it shall report the results of such investigation or audit to Code Authority for action. Article VI — Accounting and Costing The Code Authority shall cause to be formulated an accounting system and methods of cost finding and/or estimating capable of use by all employers in the Subdivision. After such system and methods have been formulated, full details concerning them shall be made available to all employers. Thereafter all employers shall determine and/or estimate costs in accordance with the principles of such methods. Article VII — Trade Practices Each of the following acts and practices is deemed to be inimical to the best interests of the Subdivision and of the public, and each is, therefore, hereby declared to 'be, and to constitute, an unfair method of competition, viz : — (1) The secret payment or allowance of a rebate, refund, com- mission, credit, unearned discount or excess allowance, whether in the form of money or otherwise, or the offering or extending to any customer any special service or privilege not extended to all cus- tomers of the same class for the pjjrpose of influencing the sale. (2) The payment, or promise "to pay, to any agent, fiduciary or representative, of money or valuable thing, with or without the knowledge of his principal, in connection with any sale to his prin- cipal. Commercial bribery provisions shall not be construed to prohibit free and general distribution of articles commonly used for advertising, except so far as such articles are actually used for commercial bribery as hereinabove defined. (3) Any discrimination between purchasers of the same class by the sale of any standardized article by any means whatsoever. (4) Untruthfully advertising, representing, or marking any prod- uct, with intent to deceive or mislead prospective purchasers. (5) The publishing or circularizing of threats of suits for in- fringement of patent or trade-marks, or of any other legal pro- ceedings, not in good faith, which would tend to harass competitors or intimidate their customers. Article VIII — 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 approved by a 66%% 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 of the Code of this Subdivision and Article VI of the Basic Code. Article IX — Withdrawal Upon thirty (30) days' notice to Basic Code Authority and to the Administrator, this Subdivision may, upon the concurring ailirm- ative vote of employers within the Subdivision entitled to cast two- thirds or more of all the votes that might be cast by all employers within the Subdivision entitled to vote thereon, withdraw from the jurisdiction of the Basic Code Authority. The eligibility of voters and the method and effect of such voting shall be in accordance with the provisions of Section (d) of Article VI of the Code or with the provisions of this Supplemental Code. Thereafter this Supple- mental Code, together with the provisions of the Code, except BUCh portions of Articles I. II and VI as are not pertinent thereto, as determined by the Code Authority and the Administrator, shall be- come and be the Code governing this Subdivision, and the Code Authority shall for this Subdivision, become and be the only Code Authority, and shall perform all the functions with respect thereto. Article X — 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 discriminate against them, and is designed to effectuate the policy of the Act. Article XI — Effective Date This Supplemental Code shall become effective and binding on all persons engaged in the Subdivision on the eleventh day after its approval. Approved Code No. 347 — Supplement No. 5. Registry No. 1399-47. O UNIVERSITY OF FLORIDA llllllllllllllll! 3 1262 08853 8227