Registry No. 1404-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TH·E 

AUTOMOTIVE PARTS 

AND EQUIPMENT MANUFACTURING 

INDUSTRY 

AS APPROVED ON NOVEMBER 8, 1933 

BY 

PRESIDENT ROOSEVELr 

'WI DO OUR PART 

, ' ' 1. ·Executive Order 

u .. C etter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

\ 

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(D) 
EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE AUTOMOTIVE p ARTS AND EQUIPMEN T MANUFACTURING INDUSTRY 

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 my approval of a Code of 

Fair Competition for the Automotive Parts and Equipment Manufacturing Industry, and hearings having been held thereon and the 

Administrator having rendered his report containing an analysis of 

the said code of fair competition, together with his recommendations 

and findings with respect thereto, and the Administrator having 

found that the said code of fair competition complies in all respects 

with the pertinent provisions of title I of the said act and that the 

requirements of clauses (1) and (2) of section 3 of the said act 

have been met: 

NOW THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise do adopt and approve the report, recommendations 

and findings of the Administrator and do order that the said code 

of fair competition be and it is hereby approved. 

THE WHITE HousE, 

November 8, 1933. 

Approval recommended: 

HUGH s. JOHNSON, 

Adniin-istrator. 

19904°-188-182-33 

FRANKLIN D. ROOSEVELT. 

(Ill) 
NOVEMBER 1, 1933. 

The PRESIDENT, 

The White House. 

Sm: The proposed Code of Fair Competition for the Automotive 

Parts and Equipment Manufacturing Industry was submitted to the 

Administrator on September 22, 1933, by Automotive Parts and 

Equipment Manufacturers, Incorporated, in cooperation with the 

Motor and Equipment Manufacturers Association, and the National 

Standard Parts Association representing approximately 80% of the 

known members of the Industry and volume of production. The 

Hearing was conducted in Washington on October 3, 1933 and the 

Code was revised during the recess of this Hearing and is submitted 

in its present form for approval. Every person who requested an 

appearance was properly heard in accordance with statutory and 

1:egulatory requirements. 

The Industry is nationwide in character. Its factories are located 

in more than 300 communities scattered throughout 40 States. It 

supplies replacement parts, accessories, service tools, equipment, and 

products through more than 200,000 outlets :for maintaining and servking the more than 20,000,000 motor vehicles which are now in use. 

In addition it supplies original parts and equipment entering into 

the manufacture of new motor vehicles. 

During the past four years the Industry experienced an indicated 

decline in production volume of approximately 40%. This was 

coincident with a drop of approximately 30% in the number of employees. It is estimated that, giving due consideration to reemployment and wage increases already effected, the Labor Provisions 

in this Code will result in restoring employment in the Industry to 

approximately 96% of the number employed in the Industry in 

1928 and will effect an increase of approximately $1,250,000 in the 

weekly pay rolls of the Industry, or an increase of approximately 

70% over the average weekly pay roll for the first six months of 

1933. 

ARTICLE I. Pwrpose.-States the purpose of the Code. 

ARTICLE II. Definitions and divisions of industry.-Accurately 

defines specific terms used in the Code, including the effective date, 

and describes the manner in which the Industry may be organized 

through Divisions and Product Groups. Such Divisions or Product Groups may adopt, subject to the approval of the President, 

their own supplemental Codes of Fair Trade Practice. 

ARTICLE III. H owrs.-The maximum hours are limited to 40 per 

week for employees engaged in the processing of products and in 

labor incident thereto averaged over a period of six months but are 

not to be in excess of six days or 48 hours in any one week. Employees engaged in the preparation, care, and maintenance of plant machinery, and facilities of and for production, and in plant protection 

are exempt from the weekly limitations above provided but the hours 

of employment of such exempted employees shall not exceed 42 hours 

per week averaged on an annual basis. Office, salaried, and other 

(lV) 
V 

employees not covered above, who receive ·less than $35.00 per week 

shall not work more than six days or 48 hours in any one week and 

not more than an average of 40 hours for each six months' period. 

Employees engaged in an executive, managerial, or supervisory 

capacity, who receive more than $35.00 per week, and employees, 

other than those engaged in processing or labor operations directly 

incident thereto and outside salespeople, who receive more than $35.00 

per week, are not subject to any hourly limitations. 

ARTICLE IV. W ages.-The minimum wage for employees engaged 

in the processing of the products or in any labor incident thereto is 

at the rate of 40 cents per hour for male employees and at the rate 

of 35 cents per hour for female employees, unless the rate per hour 

for the same class of work on July 15, 1929, was less than the abovespecified minimums, in which latter case the rate per hour-paid shall 

not be less than the rate per hour paid on July 15, 1929. In no event 

shall the minimum rate per hour paid to either male or female employees be less than at the rate of 871⁄2 % of the above-specified 

minimum rates. The rate per hour paid to either male or female 

employees shall not be less than 80% of the above-specified minimum rates in the States of North Carolina, South Carolina, Georgia, 

Florida, Alabama, Mississippi, Louisiana, Arkansas, Tennessee, and 

such other States as may be excepted with the approval of the Administrator. Apprentices and learners may not constitute more 

than 5% of the employees engaged in the processing of products 

and in labor operations incident thereto· in any month, and their 

wages shall not be less than 80% of the specified minimums for a 

period not to exce.ed three months. Female employees shall be paid 

the same rate of pay as male employees for doing the same work 

or for performing the same duties. For all other employees, except 

commission sales people, the minimum wage. is at the rate of $15.00 

per week, except that learners and apprentices shall be paid not 

less than 80% of the minimum rate for a period of three months. 

Learners and apprentices may not constitute, in any month, more 

than 5% of the total number of employees covered by the $15.00 

minimum-wage provisions. Provision is made for equitable adjustment in all pay schedules of factory employees above the minimum. 

ARTICLE V. Child Zabor.-Provides that no employer shall employ 

any person under sixteen years of age. 

ARTICLE VI . .Administration.-Establishes a Code Authority consisting of the Board of Director of the Automotive Parts and Equipment Manufacturers, Incorporated, with an additional representative 

to participate in the conferenc.e of the Code Authority with respect to 

the application of this Code, to be appointed by the President or the 

Administrator, and provides for obtaining statistics. 

ARTICLE VI C. Trade pr(J)Ctioes.-Sets forth Fair Trade Practices 

for the Industry. · 

ARTICLE VII. General.-Sets forth the mandatoiry provisions respecting right of employees to organize and bargain collectively, 

provisions respecting modification and amendments, provision required in section 10 (b) of Title I of the National Industrial Recovery 

Act, and a provision that no member of the Code shall be held to 

have consented to any modification thereof or to any provision or 

interpretation of the National Industrial Recovery Act if declared 

unconstitutional by the Supreme Court 0if the United States. 
VI 

FINDINGS 

The Administrator finds that: 

(a) ThiE? Code complies in_ all respects with the pertinent phrases 

of Title I of the Act, including without limitation subsection (a) of 

Section 7 and subsection (b) of Section 10 thereof, and that; 

(b) The Automotive Parts and Equipment Manufacturers, Incorporated, is truly representative Otf the Automotive Parts and Equipment Manufacturing Industry, and its Bylaws contain no inequitable 

restrictions on membership, and that; · ( c) The Code is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate 

against them and will tend to effectuate the poJicy of Title I of the 

;National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HUGH s. JOHNSON' 

Administratolf'. 
CODE OF FAIR COMPETITION FOR THE AUTOMOTIVE 

PARTS AND EQUIPMENT MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies 0£ Title I 0£ the National Industrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competitiou for the Automotive Parts and Equipment Manufacturing Industry, and, upon approval by the President, shall be 

the standard of fair competition for this Industry. 

ARTICLE II-DEFINITIONS AND DIVISIONS OF INDUSTRY 

The term "Industry" as used herein is defined to mean the business of the production and/ or manufacture of autom_otive parts, 

and/or equipment, consisting of automotive original equipment, 

automotive replacement parts, automotive accessories, automotive 

shop equipment, automotive service tools, automotive chemical 

specialities, automotive electrical products, internal-combustion engines excepting aircraft engines, such other allied products as are 

natural affiliates, including industrial, marine, and aircraft parts, 

units, and/or equipment, which are or have parts kindred to this 

automotive parts and/ or equipment Industry, excepting, however, 

the production and/ or manufacture of such articles when produced 

or manufactured by a manufacturer for use exclusively in his own 

finished product, and excepting the business of manufacturing and/ or 

producing rubber tires and tubes and other rubber products included in the Code or Codes of Fair Competition for the Rubber 

Industry, and excepting the products included in the Code of Fair 

Competition for the Electric Storage and Wet Primary Battery 

Industry. 

The term "member of this Industry" as used herein means all 

producers and/ or manufacturers engaged in the production and/ or 

manufacture of the products of this Industry. 

The term " member of the Code " as used herein means any 

"member of this Industry " who assents to this Code. 

The term "employees" as used herein means all persons employed 

in the conduct of the " Industry " as defined herein. The term "employers" as used herein means all members of the 

"Industry" by whom such "employees" are employed. 

The term "A.P.E.M." as used herein means Automotive P arts and 

Equipment Manufacturers, Inc., a trade association incorporated 

under the laws of the State of Illinois and having its headquarters' 

office at Detroit, Michigan, in which corporation there is no entrance 

or initiation fee and no inequitable restrictions are placed upon 

membership. 

The term " the President " as used herein means the President of 

the United States. 

(1) 
2 

The term" the Act" as used herein means the National Industrial 

Recovery Act as approved by the President on June 16, 1933. 

The term " the Administrator" as used herein means the Administrator appointed by the President under the Act and at the time 

in office. · 

The term " effective date " as used herein means the tenth day 

after this Code shall have been approved by the President of the 

United States. 

The term " expiration date " as used herein means the expiration 

date of Title I of the Act. 

This Industry may be organized into administrative units based 

upon Divisions and Product Groups within the Industry which have 

been or may hereafter be established under A.P.E.M. Such Divisions or Product Groups ma.y adopt, subject to the approval of the 

President, their own supplemental Codes of Fair Trade Practice, 

but nothing inconsistent with this Code shall be contained therein. 

It is contemplated that each Division and each Product Group 

may in their own supplemental codes establish administrative committees and be independent and self-governing in respect to all conditions and problems relating exclusively to said Division or Product Group, except that each Division and each Product Group shall 

remain bound by this Code. 

The following divisions of the products of the members of this 

Industry have been established under A.P.E.M. 

( 1) Orig-inal E quipment.-Products of this " Industry " sold to 

manufacturers and included by them as standard or optional equipment in their products. 

(2) Replacement Parts.-Service or replacement parts. 

(3) Accessories.-Automotive parts or equipment not usually included by the manufacturer to whom sold as " standard equipment " 

in the sale by such manufacturer of his products and usually sold 

to manufacturers or others as additional to "standard equipment." 

(4) Shop Equipment.-Automotive machine tools and automotive 

apparatus designed for and used in the maintenance or repair of a 

motor, industrial, marine, or aircraft vehicle or internal-combustion 

engine and usua.lly sold for use in reconditioning same. 

(5) Service Tools.-Automotive small hand tools designed especially for or used either in conjunction with shop-equipment tools 

or apparatus or in the maintenance, repair, or adjustment of a motor, 

industrial, marine, or aircraft vehicle or internal-combustion engine. 

(6") Chemical Specialties.-Automotive chemical specialties used 

chiefly in the operation, maintenance, or repair of a motor, industrial, 

n1arine, or aircraft vehicle, incluqing auto polishes (both liquid and 

wax), top dressings, retouching enamels, radiator cleaners and stopleaks, antifreeze solutions, valve-grinding compounds, and other 

kindred automotive specialties. 

(7) Automotive Electrical Products.-Automotive electrical products sold as original equipment, replacement parts, or accessories for 

n1ot?r, industrial, marine, or aircraft vehicles and internal-combustion 

engines. 

(8) lnternal-001nbwstion Engines.-Internal-combustion engines 

except aircraft engines. 
3 

(9) Other divisions may be established by the Board of Directors 

of A.P.E.M., subject to the approval of the Administrator. . 

ARTICLE III-HOURS 

(1) No employee engaged in the processing of products of this 

Industry, and in labor operations directly incident thereto, shall 

work or be permitted to work in excess of 40 hours per week, averaged over each six months' period from the effective date, provided, 

however, that such employees may be employed not more than 6 

days or 48 hours in any one week, and employees engaged in the 

preparation, care, and maintenance of plant, machinery, and facilities of and for production and in plant protection, shall be exempt 

from the weekly limitations above provided, but the hours of employment of any such exempted employees shall not exceed 42 hours 

per week averaged on an annual basis. 

(2) No office, salaried, or other employee, not covered by paragraph (1) of this Article, receiving less than $35.00 per week, shall 

work or be permitted to work more than 6 days or 48 hours in any 

one week and not more than an average of 40 hours per week for 

each six months' period from the effective date. 

(3) Employees engaged in an executive, managerial, or supervisory capacity who receive $35.00 per week or more; employees of 

the kinds covered by Section (2) of this ...\.rticle who receive $35.00 

per week or more, and outside salespeople shall not be subject to any 

hourly limitations. 

( 4) No employee shall work or be permitted to work for a totar 

number of hours in excess of the maximums herein prescribed, 

whether employed by one or more employers. 

ARTICLE IV-WAGES 

(1) The minimum wage that shall be paid by any employer to 

any employee engaged in the processing of the products of this Industry and in any labor operations directly incident thereto shall 

be at the rate of 40¢ per hour for male employees and at the rate 

of 35¢ per hour for female employees, subject to the following 

exceptions : 

(a) If the rate per hour paid for the same class of work on July 

15, 1929 was less than the above specified minimums, the rate per 

hour paid shall be not less than the rate per hour paid on July 15, 

1929, but in no event shall the minimum rate per hour paid to either 

male or female employees be less than 871⁄2% of the above specified 

minimum rates; provided, however, that in the states of North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkansas, Tennessee, and such other states as may be excepted 

with the approval of the Administrator, the rate per hour paid to 

eith(ff male or female employees shall not be less than 80% of the 

above specified minimmn rates. 

(b) Learners and apprentices for a period of not to exceed three 

months may be paid not less than 80% of the minimum rates of 

wages above specified or determined in the manner above provided, 

but in the case of any employer the total number of such learners 

and apprentices in any calendar month shall not exceed 5% of the 
4 

employees engaged in the processing of the products of this Industry 

and in labor operations directly incident thereto. 

( c) Where female employees do the same work or perform the 

same duties as male employees, they shall be paid the same rate o:f 

pay as male employees are paid for doing such work or performing 

such duties. 

(2) The minimum wage that shall be paid by any employer to all 

other employees, except commission sales people, shall be at the rate 

of $15.00 per week; provided, however, that learners and apprentices 

n1ay be paid not less than 80% of such minimum rate of wage for a 

period of three months, but in the case of any employer the total 

number of such learners and apprentic.es shall not exceed in any 

calendar month 5% of the total number of employees covered by the 

provisions of this paragraph (2). 

(3) Equitable adjustment in all pay schedules of :factory employees above the minimums shall be made not later than 30 days 

from the effective date by any employers who have not heretofore 

made such adjustments, and the first monthly reports of wages required to be filed under this Code shall contain all wage increases 

made since May 1, 1933. 

( 4) The foregoing provisions establish minimum rates of wages, 

r egardless of whether the employee is compensated on the basis o:f 

time rate or piece rate or otherwise. 

(5) Employers shall not reclassify employees falsely, i.e., contrary 

to fact with reference to work performed, with the intention of defeating the purposes of the Act. 

(6) It is understood, however, that persons whose earning capacity is limited because of age or physical or mental handicap are 

not included in the above wage provisions except that they shall in 

no case be paid less than 80% of the above minimums, and provided 

that the total number of such employees shall not exceed five employees in plants having less than 100 employees; nor more than 5% 

of the total number of employees in such plants employing 100 or 

more. · 

ARTICLE V-CHILD LABOR 

No employer in this Industry shall employ any person under 

sixteen years of age. 

ARTICLE VI-ADMINISTRATION 

A. ORGANIZATION .AND POWERS 

( 1) The Board of Directors of A.P.E.M. is hereby designated the 

Code Authority to assist the Administrator in the administration of 

this Code of Fair Competition and to formulate, with the approval 

of the President, such further code provisions as may be deemed 

necessary to insure fair competition and to effectuate in this Industry 

the purposes of the Act, provided that no inequitable restrictions 

upon membership in A.P.E.M. shall at any time be imposed. 

(2) The Code Authority is hereby designated the agency to conduct communications and conferences with the Administrator concerning the Code of this Industry or any supplemental codes of the 

Pivisions or Product Groups or any provisions thereof. 
5 

(3) With a view to keeping the Administrator informed as to the 

observance or nonobservance of this Code and as to whether appropriate steps are being taken to effectuate the purposes of the Act, 

each member of this Industry shall furnish certified reports to the 

Code Authority when and in such form as the Code Authority shall, 

subject to the approval of the Administrator, prescribe and permit a 

disinterested agency designated by the Code Authority to make such 

examinations of the records of each member of this Industry as may, 

subject to the approval of the Administrator, be deemed necessary 

for the purpose of verifying the accuracy of such reports. 

( 4) The President or the Administrator may designate a representative to participate in the conferences of the Code Authority 

with respect to the application of this Code, and such representative 

shall receive such notice of meet ings as is given to members of the. 

Code Authority and shall have access to all data and statistics collected by the Code Authority as bc-reinabove provided. The Code 

Authority shall hold itself in readiness to assist the Admini3t.rator 

and to meet with the Administrator's representative from t:me 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 Code. 

( 5) Any and all information with respect to sales volume, costs, 

and other details of operations as may be furnished by the members 

of the Industry to the properly constituted officers, committees~ or 

representatives of A.P.E.M. or its Divisions or Product Groups, shall 

be considered confidential and shall not be supplied or made avai1-

abte to othe.rs, except to the duly appointed and constituted representatives of the President. 

( 6) In addition to information required to be submitted under 

this Code, there shall be furnished to government agencies such 3tatistical information as the Adminjstrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act. 

B. PARTICIPATION 

Each member of the Code shall be entitled to participate in the 

activities of the Code Authority to the same extent as a member 

of A.P .E.M. Each member of the Code shall contribute his proportionate share toward a reasonable cost of preparation and administration of the Code, including the cost of the assembly and 

analysis of such reports and data as may be required under the 

Code and the cost of the maintenance of the Code Authority and 

its activities, either by becoming a member of A.P.E.M. or by paying 

to A.P.E.M. his equitable and proportionate share of the expense 

of administration as determined by the Code Authority subject to 

the approval of the Administrator. 

0. TRADE PRACTICES 

(1) It shall be unfair competition for any member of this Industry to sell or exchange in commerce within the continental boundaries o_f the United States of America any product of his manufacture at a price or upon such terms or conditions as will result 
6 

in the customer paying for the goods received less than the cost 

to the seller, except under such special conditions as may be adopted 

by a Product Group in a supplemental code approved by the 

President. · 

(a) Cash or trade discounts, freight, express, cartage, or other 

delivery expenses allowed from invoice price shall be deducted therefrom in determing the net sales price. 

(b) Each Product Group shall adopt, within such period as may 

be determined by the Code Authority, a definition of cost, methods 

of costing and accounting, and provisions for the administration 

and enforcement of the foregoing prohibition, subject to the approval 

of the Administrator. 

( c) Where a member of this Industry produces more than one line 

of products, each line shall be considered a separate unit for purposes 

of ascertaining costs, and expenses of all kinds shall be properly and 

fairly allocated to the several lines. 

(2) Nothing in this Code shall be interpreted to prevent the sale 

of dropped lines or surplus stock, or inventories which must be converted into cash to meet financial needs, at such prices as are necessary to move such merchandise, provided that after the approval of 

supplemental codes for the several Divisions or Product Groups all 

such stocks shall first be reported to the administrative committees of 

the proper Product Groups who shall in turn report to the administrative committees of all Divisions whose Groups may be affected 

by such action. . (3) The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other misrepresentations to mislead and deceive 

purchasers or prospective purchasers, is unfair competition. 

( 4) Maliciously enticing a way the employees of competitors with 

the purpose and effect of hampering, injuring, or embarrassing competitors in their business is unfair competition. 

(5) The dating of an invoice other than the date of the shipment 

and the withholding from, or inserting in the invoice, facts which 

make the invoice a false record, wholly or _in part, of the transaction 

represented on the face thereof, and/or the payment or allowance of 

secret rebates, refunds, credits, unearned discounts, :whether in the 

form of money or otherwise, is unfair competition. 

( 6) Disparagement of the goods of competitors to mislead or 

deceive purchasers or prospective purchasers is unfair competition. 

(7) Selling or offering to sell any product with intent to deceive 

purchasers or prospective purchasers is unfair competition. 

ARTICLE VII-GENERAL 

(1) As required by Section 7 (a) of Title I of the Act, the £ollow1ng provisions are conditions of this Code: 

(a) " That employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection; 
7 

(b) " That no employee and no one seeking employment shall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and 

( c) "That employers shall comply with the maximum hours of 

labor, minimum rates of pay, and other conditions of employment 

approved or prescribed by the President." 

(2) Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements regulating the age 

of employees, wages, hours of work, or health, fire, or general working conditions than under this Code. 

( 3) Such of the provisions of this Code as are not required to be 

included herein by the Act may, with the approval of the President, 

be modified or eliminated by the Board of Directors of the A.P .E.M. 

if it appear that the public needs are not being served thereby and 

as changes in circumstances or experience may indicate. 

(4) It is contemplated that from time to time supplementary 

provisions to this Code or supplemental codes will be submitted for 

the approval of the President to prevent unfair competition in price 

and other unfair and destructive competitive practices and to effectuate the purposes of the Act and which shall not conflict with the 

provisions hereof. 

( 5) As required by Section 10 (b) of Title I of the Act, the following provision is contained in this Code: The President m~y from 

time to time cancel or modify any order, approval, license, rule, or 

regulation issued under said Title. 

(6) No member of this Code shall be held to have consented to any 

modification thereof or to any provision or interpretation of the 

National Industrial Recovery Act if declared unconstitutional by the 

Supreme Court of the United States. 

(7) No provision of this Code shall be so applied as to permit 

monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

(8) Each employer shall post in conspicuous places, accessible to 

employees, :the labor provisions of this Code. 

(9) Violation by any member of this Industry of any provision of 

this Code is an act of unfair competition, and the offender shall be 

subject to the penalties imposed by the Act. 

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