Approved Code No. 437 Registry No. 1407- 1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR C·OMPETITION 

FOR TRE 

BICYCLE MANUFACTURING 

INDUSTRY 

AS APPROVED ON MAY 21, 1934 

WE DO OUR PART 

T 

••• 

0 -

tJNITED STATES 

GOVERNMENT PRINTING OFFICE 

W ASWNGTON: 1934 

For sale by the Superintendent of Documents, WashIOiton, D.C. • • • - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

J.>rinting Office, Washington, D.C., and by district offices of the Bureau ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEP ARTl'IENT 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, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, 1\lo. : 1028 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn.: 229 Federal Building. 

Minneapolis, Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street~ Philadelphia, Pa. : 422 Commercial Trust Building. 

PittsburgJ.:i, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 437 

CODE OF FAIR COMPETITION 

FOR THE 

BICYCLE MANUFACTURING INDUSTRY 

As Approved on May 21, 1934 

ORDER 

APPROVING Corn~ OF FAIR COMPETITION FOR THE BICYCLE 

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 approval of a Code of 

Fair Competition for the Bicycle :Manufacturing Industry, and 

hearings having been duly held thereon and the annexed report on 

said Code, containing .findings with respect thereto, having been 

made and directed to the President: 

NOvV, 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 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 Code of 

Fair Competition be and it is hereby approved; provided, however, 

that the Code Authority for the Bicycle Manufacturing Industry 

shall, within sixty (60) days, report to me facts relative to the wag-e 

rates hereby established to the end that if it appears that the said 

wage rates do not contribute to the purchasing power of workers 

to the extent that might reasonably be expected there will be a 

reconsideration of said wage rates. 

Approval recommended : 

K. M. SIMPSON' 

HUGH s. JOHNSON, 

Adminutrator for Industrial, Recovery. 

Division Adminutrator. 

w .A.SIDNGTON, D. c., 

May BJ, 1934. 

60976°---044-122---34 (287) 
REPORT TO TrIE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: The original Code of Fair Competition for the Bicycle 

Manufacturing Industry was submitted on August 3, 1933, by the 

Bicycle Manufacturers Association, an unincorporated membership 

society organized in 1910 representing in excess of 871⁄2% of the 

known members of Industry and 97% of the volume of production. 

Several revisions of the Code were made prior to the Public Hearing 

which was held on Dece1nber 13th, 1933. The Code was revised 

during the recess of this hearing and submitted in its present form 

for approval. Every person who requested an appearance was 

properly heard in accordance with statutory and regulatory 

requirements. 

The Bicycle Industry is represented by eight members, seven of 

whom are members of the Bicycle Manufacturers Association. 

Their plants are all located east of the 1'1ississippi River. The 

Industry manufactures and sells Bicycles and Bicycle parts. The 

manufacture of bicycle parts for sale to consumer is by no means 

an insignificant part of the Industry, the ratio of value of parts to 

the total value of bicycles and parts in 1929 being 40% . Because of the advent of other forms of transportation the popularity of the bicycle has suffered a great decline. In order to maintain some semblance of popularity the Industry has made a consistent effort to meet the com.petition of other forms of transportation 

by reducing the price of its products. 

A review of the general economic tendencies of the Industry indicate that since 1914 the peak production of 486,177 bicycles was 

reached in 1923. From 1923 to 1932 the decline in production, 

except for 1929, has been consistent. It was during this veriod that 

the demand for the bicycle as a means of transportation became 

secondary to its demand as a plaything for children: 

Number of Average Number of Average 

Year bicycles value of bi- Year bicycles value ofb!-

cycle cycle 

1914 ______________________ 299,029 $12.57 1927 ______________________ 255,456 1919 ______________________ 470,675 26.96 1929 ______________________ 307,845 $22. 20. ~ 1921 ______________________ 216,464 28. 73 1931 ______________________ 1923 ______________________ 260,029 18.2 

486,177 22. 06 1932 ______________________ 205,000 1925 _____________________ ------------ 303,446 23. 17 

An analysis of the employment data from a maximum of 157!S 

workers in 1929 (indicates 100% ) to the first quarter of 1933, indi-

(288) 
289 

cates a decline of 47%, The subs quent recovery, however, brought 

employm nt in the third quarter of 1933 to 93% of the 1929 level. 

Number or Index (1929 Number or Index (1929 Year 11,nd quarter factory Year und quarter fac tory workers = 100) workers =100) 

1929 ____ ___ _______________ 1,575 100. 0 1932-3d quarter ____ ______ _ 946 60.1 1930 _______________________ 1,420 90. 1 4th quarter __ ______ __ 1931 _______________________ 1,186 711,1 1,200 76.4 1933-lst quarter_ __________ 840 53. 1932-lst quarter_ _________ _ 1, 005 64. 0 2d quarter_ __________ 1,045 66.4 2d quarter ____ _______ 1,010 64.1 3d quarter ___________ 1, 4.65 93.1 

The Indu try is a highly seasonal one due to the fact that bicycles 

are so largely used as Christmas presents for children. The peak 

of the Industry's production during the past five years, 1928 to 

1932, has come in October. There have been two low points, ona 

in January, after which there has been a slight spring recovery, 

and one in June, after which the major production activity of the 

year has occurred. 

As shown in the following table, October total man-hours have 

been on the average 88% greater than June man-hours, while 

October employment has been 33% greater than that of June. The 

increase in hours ,per employee per week has been, on the average, 

40% from June to October. In 1933 the situation was strikingly 

different for, whereas total man-hours increased 70%, the increase 

in employment was nearly as great-62%-and average hours per 

employee per week increased but 3%. It would appear, therefore, 

that the modified President's Reemployment Agreement, which permits a 48-hour maximum during the peak months of the year, had 

the effect of forcing the Industry to follow the alternative of employing more workers to meet peak activity than normally would 

have been the case : 

Total man-hours _________ __________________________________________________ _ 

Number of wage earners ___ _________________________________________________ _ Average hours per employee ________________________________________________ _ 

Percentage change 

June to 

October 

1928-32 

88 

33 

40 

June to 

October 

1933 

70 

62 

a 

The wages paid in the Industry have declined with the decreased 

demand for its product. The average hourly earnings in June 

1929 was 51.7¢, in June 1933 it had decreased to 371-/2¢. In June 

1933 to October, during which the company adopted a proposed 

minimum wage scale, the average hourly wage scale rose to 44.3¢. 

An analysis of the distribution of factory workers in the Bicycle 

Industry by hourly earnings in 1933 indicates that the Industry has 

paid relatively low wages. . 
290 

Number Percent- Number Perce~tEarnings per hour of age of Earnings per hour of age o factory total factory total workers number workers number 

Under 15 cents __ . __ __________ 4 0. 7 60 cents to 54.9 cents __ ________ 40 

16 cents to 19.9 cents __________ 6 1. 1 65 cents to 59.9 cents __________ 29 ~J 20 cents to 24.9 cents __ ________ 32 5. 3 60 cents to 69.9 cents _________ 18 

25 cents to 29.9 cents __ ______ __ 65 9.3 70 cents to 79.9 cents __________ 2 iJ 80 cents to 34.9 cents __ ________ 97 16.3 80 cents or more ___ ___________ 1 0.2 

85 cen ts to 39.9 cents __ ________ l~g I 11. 8 

40 cents to 44.9 cents ______ ____ 25. 2 Tota) _________________ __ 593 100.0 

46 cents to 49.9 cents ___ _____ __ 90 16.1 

Under the President's Reem.ployment Agreement the average of 

54 hours per week was reduced to 48 hours maximum which resulted 

in the spreading of some available work among the workers. With 

a maximum of 40 hours per week as outlined in the Code and with 

the minimun1 of 35¢ per hour and a provision for the adjustment 

of wages above the minimum should result in a further spreading 

of not only the available work among the workers but also an 

increased consumer purchasing power. 

ARTICLE I. Purpo-se.-States the purpose of the Code. 

ARTICLE II. Definitions.-Accurately defines specific terms applicable to the Bicycle Manufacturing Industry as used in this Code. 

ARTICLE III. Hours .-The maximum hours are limited to 40 hours 

per week for employees engaged in the processing of products and 

labor incident thereto, except that during thirteen weeks in the last 

six months of a ·calendar year in order to meet seasonal peak demands, employees may be permitted to work not more than 45 hour~ 

per week and not more than 9 hours in any one day. Office, salaried 

and other employees not covered above who receive less than $35.00 

per week shall not be permitted to work in excess of an average of 

40 hours in any one week during any 5 week period and not to exceed 

48 hours in any one week. Watchmen shall be permitted to work not 

more than 56 hours in any one week. Employees engaged in an 

executive, managerial or supervisory capacity who receive not less 

than $35.00 per week, and those engaged in emergency repairs or 

maintenance where the safety of life or health or the protection of 

property neces itates longer hours, are not subject to any hourly 

limitations. No employee shall be permitted to work more than 

six days in any seven day period. 

ARTICLE IV. W aqes.-The minimum wao-e for employees engaged 

in the proce sing of products or in any labor incident thereto is at 

the rate of 35¢ per hour for any pay period. Female employees 

shall be paid the same rate of pay as male employees :for doing the 

same work or performing the same duties. No per on employed in 

clerical or office work shall be paid less than at the rate of $15.00 per 

week except that office boys and girls may be paid a minimum o:f 

80% of the established minimum for office employees. The established minimllIIl rate of pay for work performed in any period shall 

apply irrespective o:f whether an employee is actually compensated 

on a time rate piece work or other basis. Provision is also made 

for the employing of handicapped persons who shall be paid not 

less than 80% of the minimum wage scale. Provision is also made 

for the adjustment of wages above th minimum. fixed in this Code 

if such has not been made since July 1st, 1933. 
I 

291 

ARTICLE V. Gene1·al, Labor P1·ovi,gions.-Provides that no employer 

shall employ any person under 16 years of age n.nd that no person 

und r 1 years of age shall be employed at operations or occupations 

which are hazardous in nature or dangerous to health. This Article 

also sets forth the mandatory provision r specting the rights of 

employees to organize and baro-ain collectively. It also provides for 

matters having to do with reclassification of employees, standards 

for safety and health, the observance of State laws and the ]?Osting 

of labor provisions of this Code so that they are accessible to 

employees. 

ARTICLE VI. Administration.-Establishes a Code Authority consisting of four members to be selected by a fair method of selection 

so as to be truly representative of the Industry subject to the 

approval of the Administrator. In addition to the four members 

named above there may be one or three representatives, without vote, 

and without exp,ense to the Industry to be appointed by the Administrator for such terms as he may specify. In addition to the 

organization of the Code Authority, the powers and duties thereof 

are also outlined in this Article. 

ARTICLE VII. M arrketing and Trade Practice Rules.-Sets :forth 

Trade Practices :for the Industry. 

ARTICLE VIII. Expor·t Trade.-N o provision of this Code relating 

to terms of selling, shipping, or marketing, shall apply to expor1; 

trade or sales or shipments for export trade. 

ARTICLE IX. M odification.-This Code and all the provisions 

thereof are expressly made subject to the right of the President in 

accordance with Subsection (h) of Section 10 of the Act, to cancel 

or modify any order, approval, license, rule or regulation issued 

under said 'Act. 

ARTICLE X. l,f 011.'opolies.-N o provision of this Code shall be so 

applied as to permit monopolies or monopolistic practices, or to 

eliminate, oppress or discriminate against small enterprises. 

ARTICLE XI. Price I ncreases.-This Article indicates that the increase in selling price, so far 11s possible, will be limited to actual 

additional increases in seller's costs. 

ARTICLE XII. Effective Da.te.-This Gode shall become effective 

beginning ten days after its approval by the Administrator. 

The Deputy Administrator in his final report to me on this Code 

having found as herein set forth and on the basis of all the proceedings in this matter; 

I find that: 

(a) Said 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 eliminati~ 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 agricul-
292 

tural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. (b) Said I ndustry normally employs not more than 50,000 employees; and is not classified by me as a major indu try. ( c) The Code as approved complies in all respects with the perti-

:μent provisions o:f said Title of said Act, including without limitation 

Subsection (a) o:f Section 3, Subsection (a) o:f Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association 

is an industrial association truly representative of the aforesaid 

1ndustry, and that said association imposes no inequitable restrictions 

on admission to membershi:p therein. 1 ( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 1 ( e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

i ( 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 Code. 

For these reasons, therefore, this Code has been approved. 

Respectfully, 

MAY 21, 1934. 

HUGH s. JOHNSON' 

Administrato,r. 
CooE OF FAIR CouPETITI N FOR THE BICYCLE MANUFACTURING 

INDU TRY 

ARTI LE I-P RPO ES 

To effectuate the policies of Title I of the National Industrial Recovery Act, thi Code is e tabli he l as a Code of Fair Competition 

for th Bicycle lVIanufacturino- Indu try, and its provisions are the 

-tandard of fair competition for c;u ·h Industry and ure binding 

up n every memb r thereof. 

ARTICLE II-DEFINITIONS 

vVhere, er u ed jn thi. Code, or any supplement appertaining 

thereto, the term enumerated in thjs Article shall haYe the meanin~,s herein defined unless the context shall otherwise clearly indicate. 

~ECTION 1. The term "President" as used herein means the President of the United States. 

SE TI N 2. The term 'Act" as u ed herein means the National 

Indu trial Recov ry Act. 

SECTION 3. The term "Admini. trator " as used herein means the 

Admini trator for Industrial Recovery under Title I of said Act. 

SE TION 4. The term "Bicycle :!Yfanufacturing Industry" or "Industry ' as us d herein include the manufacturing selling and distributing by the manufacturer of bicycle and part thereof, and uch 

related branche · anll sub-division thereof a may from time to time 

be included under the provi ions o:f thi. Code. 

SECTION 5. The term" l\fember of the Industry" includes all those 

enO'ag d in the Indu try, eith er as an employer or on his or its own 

behalf. 

SE TI N G. The term "Empl yee" as used herein includes anyone engaaed in the Industry in any apacity, receiving compen.-ation for hi services, irrespectiv 0 of the nature or method of payment 

of such ompen ation, xcept a member of the Inclu try. 

E TION 7. The term "Employer" a u eel herein inclu les anyone 

by whom any such employee i compe1rated or employe l. 

SE 'TION 8. The term "Apprentice" as used herein means an individual bonn l by indenture executed in compliance with the laws of 

the tat where the ervice provided for therein i to be performed 

to erY an employ r for the term of the indenture at a predeterrnjnecl \\·aae for the period of the indenture in order to learn a 

trade art or craft. 

E TION V. Th t rm "Learn r" means an employee without 

pre ious exp ri nee engaged to become c mpetent on one or more 

pcration bnt who hall not be o cla ---ified after ninety (90) days 

employm nt in the Industry. 

(293) 

60D7G0-G44- 122-34- 2 
294 

ARTICLE III-Houns 

' 

SECTION 1. Maximum H o'l.lff's.-N o employee shall work or be 

permitted to work in excess of forty ( 40) hours in any one week 

or eight (8) hours in any twenty-four (24) period, except as herein 

otherwise provided. A normal work day shall not exceed eight 

(8) hours. SECTION 2. Iiours fo1· Clerical and Office E1nployees.-No person 

employed in clerical or office work shall be permitted to work in 

excess of an average of forty hours in any one week during any five 

week period and not to exceed forty-eight ( 48) hours in any one 

week. A normal work day shall not exceed eight ( 8) hours. 

SECTION 3. Exceptions as to H ours.-The limitation as to hours of 

labor as specified in Sections 1, 2 and 4 of this Article III shall not 

apply to the following: 

(a) Production employees, mechanical workers, or artisans in 

industry, except as hereinafter provided, shall not be employed in 

excess of forty ( 40) hours per week, nor more than eight ( 8) 

hours in any twenty-four (24) hour period; provided, however, that 

during any period in which a concentrated demand upon any division of the Industry shall place an unusual and temporary burden 

for production work upon its facilities or to meet seasonal peak 

requirements or emergencies, an employee of such division may be 

permitted to work not more than forty-five ( 45) hours per week and 

not more than nine (9) hours in any one day in not more than 

thirteen (13) weeks in any calendar year. The present known peak 

period for the Industry occurs during a thirteen (13) week period 

in the last six months of the calendar year. 

(b) To employees engaged in emergency maintenance, or emergency repair work, involving breakdown or protection of life or 

property, provided that in such special eases at least one and onehalf times the normal wage rate for any employee so employed shall 

be paid for all hours worked in exoess of forty ( 40) hours in any 

one week; provided that this overtime provision shall not apply 

in case of catastrophies involving loss of life. Such special cases, 

however, shall be reported to the Code Authority. 

( c) Nor to outside sales or sales service men, nor to persons in a 

managerial, executive or supervisory capacity, who receive more 

than $35.00 per week. 

(d) Nor to watchm-en, who shall be permitted to work iiut more 

than fifty-six ( 56) hours in any one week. 

( e) There may be a tolerance of 10% additional hours over the 

forty ( 40) hours in any one week for employees engaged in the 

preparation, care and maintenance of machinery and production 

facilitiet\ and for stock and shipping clerks and truckmen engaged 

in outside delivery and pick-up service. 

SECTION 4. Standard W eek.-N o employee shall be permitted to 

work more than six (6) days in any seven (7) day period. 

SECTION 5. E1nployment by Several Ern.ployers.-N o employer 

shall knowingly permit any employee to work for any time, which 

when totalled with that already performed with another employer 

or employers exceeds the maximum permitted herein. 
295 

AnTI LE IV-vV GES l 

ECTI N 1. 1lf in.imi1,m, lVage~.-On ancl aft r tho offc tive date of 

this o e no empl yee hall be paid in any pay period le s than at 

the rate of thirty-five (35) cents p r hour, except a otherwise herein 

provided. 

E TION 2. Piecework Oom,pen. ation-Minimum W ages.-The establish d minimum rate of pay for the work per-formed in any pay 

p riod hall apply irre p tive of whether an empl y is a tually 

comp n ated on time rate, piAce work, or other basi . 

E TION 3. Wages Above L1lini1nw1n.-vVithin thirty (30) days 

from the date of approval of this Code, an adjustment of wages 

above the minimum provided in this ode shall be made by the 

members of the Industry who have not heretofore made such ad- justment. Such adjustment shall mean that differentials in compensation between employees receiving the minimum. wage and employees above the minimum existing prior to the date of approval 

of this Code shall be maintained; provided, however, that in no 

event shall rates of pay be reduced. Each n1.ember of the Industry 

shall make a report of such adjustment whether made prior to or 

subsequent to the date of approval of this Code to the Code 

Authority. 

SECTION 4. Female E1nployees.-Female employees performing 

substantially the same work as male employees shall receive the 

same rate of pay as male employees. 

SECTION 5. Handicapped Persons.-A person whose earning capac- ity is limited because of age or physical or mental handicap may be 

employed on light work at a wage not below 80% of the minimum 

established by this Code, if the employer obtains from the State 

Department of Labor a certificate authorizing his employment at 

such wages and for such hours as shall be stated in the certificate. 

Each employer shall file with the Code Authority a list of all such 

persons employed by him. Such handicapped persons shall not 

constitute more than 5% o:£ the total number of employees of any 

one employer. 

SECTION 6. Mvnimum Wage for Clerical and Office Employees.-

No accounting, clerical, office, sales or service employees working on 

a weekly basis in any office shall be paid less than at the rate o:£ 

$15.00 per week; provided, however, that office boys and girls and 

me enger shall be paid at a rate not less than 80% of the minimum 

hereinabove specified, and provi led further that the number o:£ such 

boys and girls and messengers so paid shall constitute not more than 

5% o:£ the total number of such employees of any one office of any one 

employer, but in any case such employer shall be entitled to two such 

employees. 

ECTION 7. Apprentices.-The use o:£ apprentices shall be permitted 

wh re they are apprenticed to an employer by an indenture made 

pur uant to the laws of the state in which such service is to be performed, under any appr ntic sy tern establi hed ancl maintained by 

su ·h employer, provided such indenture ao-reements are filed with the 

ode Authority. Emplo er shall not be allowed to haYe apprentices 

exceeding 5% of t e total number of skilled era£ men of their 

1 See paragraph 2 of ord er approving this Code. 
296 

special class, except that each employer shall be entitled to employ at 

least one such employee an 1 in no case shall they be paid less than 

the minimum wage provided in Section 1 of Article IV. 

SECTIO r 8. L earners.-Learner for a p riod of not to exceed 

ninety (90) days may be paid not less than 80% of the minimum 

rates of wages, provided, however, the total number of such learners 

in any calendar month shall not exceed 5% of the total number of 

employees. 

ARTICLE V-GENERAL LABOR PROYISIONS 

SECTION 1. Ohilcl Labo1·.-No person under sixteen (16) years of 

age shall be employed in the Industry. No person under eighteen 

(18) years of age shall be employed at operations or occupations 

which are hazardous in nature or dangerous to health. The Code 

Authority shall submit to the Administrator within ixty (60) days 

after the effective date of this Co le a list of such operations or occupations. In any state, an employer shall be deemed to have complied 

with this requirement if he has on file a certificate or permit duly 

signed by the Authority in such state e111powered to issue employment or age certificates or permits showing that the employee is 

of the required age. 

SECTION 2. (a) Provisions from, the Act.-Ern.ployees shall have 

the right to organize and bargain collectively through repre entatives of their own choosing, and hall be free from the interference, 

restraint or coercion of employers of labor, or their agents, in the 

de ignation of such representatives, or in self-organization, or in 

other concerted activities for the purpose of collective bargaining or 

other mutual aid or protection. 

(b) 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. 

( c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay and other conditions of employment approved or prescribed by the President. 

SECTIO 3. Reclassification of E17iployees.-No employer hall reclassify employee or duties or occupations performed or engage in 

any other subterfuge :for the purpose of defeating the purposes or 

provisions of the Act or of this Code. 

SECTION 4. Stanclarcls for Safety ancl H ealth.-Every e111ployer 

shall make reasonable provision for the safety and health of his 

employees at the place and during the hours of their employment. 

Standards of safety and health for the Industry shall be submitted 

to the Administrator within six months after approval of this Code. 

SECTION 5. State Laws.-No provision in this Code shall supersede any State or Federal Law which imposes on employers more 

stringent requirements as to age of employees, wages, hours of work, 

or as to safety, health, sanitary or general working conditions, or 

insurance or fire protection, than are imposed by this Code. 

SECTION 6. Posting.-All employers shall keep posted complete 

labor provisions of this Code and any amendments thereto in conspicuous places accessible to employees. 
297 

A.Rn LE VI- ODE A U'l'HOru 'Y 2 

ORG NJZATIO..i::r AND CONSTI'l' ''l'ION 

E TION 1. A Code Authority to adm.nister this Code is hereby 

e tabli h d, whi h shall consist of £our member.- to be elected by a 

fair method of selection so a to be truly repr entative of the I:q1u try, subject to the approval of the Administrator; two such 

members arc to be elected b,v th Members of the Industry, wit4 

each member thereof e.ntitled to one vote for every one hundred 

(100) bicycles, or major fraction thereof, sold during the twelve 

calendar month next precedino- the month when the election is 

held and two m mbers to be elected by a majority vote of the 

Indu try, wherein ea h member thereof is entitled t o one vote; 

provided, further, that in the event any members of the Industry 

con titutino- in the aggregate le s than a majority of all of the members of the Indu try, shall collectively produce by number of units 

a volume of 50o/( or more of the total production of the I ndustry, 

those .Producing the remainder of such volume, shall always have 

representation on the Code Authority equal to those producing the 

majority of such volume. 

SECTION 2. In addition to members as above provided, there mn.y 

be one and not more than three members, without vote and without 

expense to the Industry, to be appointed by the Administrator as 

he may specify for a six-month or twelve-month period from date 

of appointment. 

SECTION 3. Each trade or industrial association directly participating in the selection or activities of the Code Authority shall (1) 

impose no inequitable restrictions on membership, and (2) submit 

to the Administrator true copies of its Art1cle of Association, ByLaws, Regulations and any amendments when made thereto, together 

with such other information as to membership, organization, and 

activitie as the Administrator may deem necessary to effectuate the 

purpose of the Act. 

SECTION 4. In order that the Code Authority shall at all times be 

truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may prescrib~ 

such hearings as he may deem proper, and thereafter if he shall find 

that the Code Authority is not truly representative or does not 

in other respects comply with the provisions of the Act, he may require an appropriate modification in the method of election of the 

Code Authority. 

SECTION 5. Members of the Industry shall be entitled to participate in and share the benefits of the activities of the Code Authority 

and to participate in the selection of the members thereof by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its administration. 

Such reasonable share of the expenses of administration shall be determined by the Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other factors 

as may be deemed equitable. 

2 See paragraph 2 o! order approving this Code. 
298 

SECTION 6. Nothing cont ained in this Code shall constitute the 

members of the Code Authority partners for any purpose, nor shall 

any member of the Code Authority be liable in any manner to anyone f or any act of any other member-, officer, agent or employee of 

the Code Authority, nor shall any member of the Code Authority, 

exercising r easonable diligence in the conduct of his duties hereunder, 

be liable to anyone for any action or omission to act under this Code, 

except for his own mis-feasance or non-feasance. 

POWERS AND DUTIES 

SECTI-ON 7. The Code Authority shall have the following further 

powers and duties, subject to such rules and r egulations as may be 

issued by the Acln1inistrator, the exercise of which shall be 

reported to the Ad1ninistrator and shall be subject to his r~ght, on 

review, to disapprove any action taken by the Code Authority. If 

the Administrator shall determine that any action of a Code Authority or any agen cy thereof may be unfair or unjust or contrary to 

the public interest, the Administrator may require that ~uch action 

be suspended to afford an opportunity for mvestigation 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 

Acbninistrator approves or u11Jess he shall fail to disapprove after 

thirty days' notice to him of intention to proceed with such _ action 

in its original or modified form. 

(a) To insure the execution of the provisions of this Code and 

provide for the compliance of the Industry with the provisions of 

the AGt. 

(b) To adopt By-Laws, Rules and Regulations for its procedure 

and for the administration and enforcement of the Code. The Code 

Authority shall promptly furnish the Administrator with true 

copies of the By-Laws, Rules or Regulations adopted pursuant to 

this paragraph. 

( c) To obtain from members of the Industry such information 

and reports as are required for the administration of the Code and 

to provid-e for submission by members of such information and 

reports as the Administrator may deem necessary for the purposes 

r ecited in Section 3 (a) of the Act, which information and reports 

shall be submitted by members to such adn1inistrative and/or 

government agencies as the Administrator may designate; provided 

that nothing in this Code shall relieve any member of the Industry 

of any existing obligations to furnish reports to any government 

~ agency. No individual reports shall be disclosed to any other member of the Industry or any other party except to such governmental 

agencies as may be directed by the Administrator. I n addition to 

information r equired to be submitted to the Code Authority, there 

shall be furnished to government agencies such statistical information as the Administrator may deem necessary for the purposes 

recited in Section 3 (a) of the Act. 

( d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that such 
299 

trade associations and agencies shall at all times be subject to and 

comply with the provisions hereof. 

( e) To make recommendations to the Administrator for the coordination of the administration of this Code with U"h other codes, 

if any as may be related to the Industry. 

(f) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those memoors of the Industry who 

ha e assented to, and are complying with, this Code. 

(g) To recommend to the Administrator further fair trade praotice provisions to govern members of the Industry in their relations with each other or with other industries an l to recommend 

to the Admini trator measures for industrial planning, including 

stabilization of employment, which upon approval by the Administrator shall become effective as a part of this Code. 

ARTICLE VII-TRADE PRACTICE RULES 

The following trade practices are declared to constitute unfair 

methods of competition hatween members of the Industry, and no 

member of the Industry shall use any of them, either directly or 

indirectly, through any officer, agent or employee. The violation 

of any one or more of these, together with such other trade practice provisions which may be recommended to the Administrator 

and approved by hiin after such notice and hearings as he may 

prescribe, shall constitute a violation of this Code. 

1. No member of the Industry shall sell any item which he manufactures or purchases below his cost of that item. The Code Authority shall cause to oo formulated an accountjng system and 

methods of cost finding and estimating, capable of use by all members of the Industry. After such system and methods have been 

formulated full details concerning them sha11 be m-ade available 

to all members. Thereafter1 all members shall determine and estimate costs in accordance with the principles of such methods. 

2. Selling terms shall not exceed 2% 10th :proximo, net after 10th 

proximo, except on ractory shipments to Pacific Coast points, where 

the terms may be 2% second 10th proximo. 

3. Pre-dating or post-dating .of any invoice or sales contract, except to conform to a bona-fide a~reement entered into on the pre-date. 

4. 11 shipments shall be t.o.b. point of origin. In any case 

where the manufacturer has a warehouse stock in any city, freight 

need not necessarily be shown on the in voice, but the goods shall be 

priced to include full cost of freight plus warehouse expenses. 

5. r o member of the Industry shall publish advertising ( whether 

printed radio 2 display or any other nature) which is misleading 

or inac urate 1n any material particular, nor shall any member in 

any way misrepre ent any goods (including, but without limitation, 

it use trademark, gra le, quality, quantity, origin, size, substance, 

chara ter, nature fini h, material, content or preparation) or credit 

terms, values policies, ervic s, or the nature or form of the business 

conducted. 

6. o member of the Industry shall knowingly withhold from 

or insert in any quotation or invpice any statement that makes it 

inaccurate in any material particular. 
300 

7. No member of the Industry shall brand or mark or pack any 

goods in a:p_y manner which is intended to or does deceive or mislead 

purchasers with respect to the brand, grade, quality, quantity, 

origin, size, substance, character, nature, finish, material content or 

preparation o:f such goods. 

8. No member of the Industry shall publish or circulate unjustified or unwarranted threats o:f legal proc€edings which tend to 

or have the effect of harassing competitors or intimidating their 

customers. 

9. No member o:f the Industry shall secretly off er or make any 

payment or allowance of a rebate, refund, commission, credit, unearned discount or excess allowance, whether in the :form of money 

or otherwis~, nor shall a member of the Industry secretly offer or 

extend to any customer any special service or privilege not extended 

to all customers o:f the same class, for the purpose of influencing 

a sale. 

10. No member o:f the Industry shall ship goods on consi~nn1ent 

except under circumstances to be defined by the Code Authority, 

with the approval of_ the Administrator, where peculiar circumstances 

o:f the Industry require the practice. 

11. No member of the Industry shall give, permit to be given, or 

directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee.., agent or representative of another in relation to the business of the employer of such 

employee, the principal or suc"h agent or the represented party, 

without the knowledg·e of such employer, principal or party. This 

Commercial bribery provj.sion shall not be coru;trued to prohibit 

free and general distribution of articles commonly used for advertising, except so far as such articles are actually used £or commercial 

bribery as hereinabove defined. 

12. No member of the Industry shall attempt to induce the breach 

o:f an existing contract between a competitor and his customer or 

source o:f supply; nor shall any such member interfere with or 

obstruct the performance of such contractual duties or services. 

13. No member of the Industry shall make allowances in any :form 

for dating, :freight, demoru;tration, or any other purposes, except that 

he may provide cuts, electros., and .mats picturing and describing 

his own product as assistance to customers in advertising his 

merchandise. 

ARTICLE VIII-EXPORT TRADE 

No provision of this Code relating to prices or terms of selling, 

shipping or marketing, shall apply to export trade or sales or 

shipments :for export trade. 

ARTICLE IX-MODIFICATION 

SECTION 1. This Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provisions of Sub-section (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, and specifically, but without limitation, to the right of the President to cancel or modify his approval 
301 

of this Code, or any conditions impo d by him up n his approval 

th r o:f. 

E TION 2. Such o:f the provisions of thi Cod as are not r equired 

to be in lud d th rein by th Act 1 may, ith the approval o:f the 

Admini trator, be mo lified or eliminated in such manner as may be 

in li ated by then ed o:f th public, by changes in circumstances, or 

by experience; all the pro, isions of thi Code, unless modified or 

eliminated, shall remain in effect during the life of the Act. 

SE TION 3. An amendment may be proposed by any interested 

party, eith r to the Code Authority or directly by or to the Admin• 

istrator. All propos cl amendments shall be referred to the Code 

Authority, who shall give members of the Industry an opportunity 

to be heard thereon, and thereafter the Code Authority may make 

such recomm ndations thereon as is deemed proper, provided, however, that when approved by the Administrator as necessary to 

effectuate the policies of the Act, after such notice and hearing as 

he may prescribe, any proposed amendment shall thereupon become 

effective as a part of this Code. 

SECTION 4. The ode Authority may make recommendations :for 

modifications o:f this Code to the Administrator which shall become 

effective as a part of this Code upon approval by the Administrator 

after such notice and hearing as he may prescribe. 

ARTICLE X-l\1oNOPOLIES 

No provision o:f this Code shall be so a pp lied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI-PRICE INCREASES 

"Whereas the policy o:f the Act to increase real purchasing power 

will be made more difficult o:f 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 cost 

should be delayed, but when made such increases should, so far as 

possible, be limited to actual additional increases in the seller's 

costs. 

ARTICLE XII-EFFEOTIVE DATE 

This Code shall become effective ten days after its approval b7 

the Administrator. 

Approved Code No. 437. 

Registry No. 14-07-1-02. 

60976°-544-122-34--2 

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