Approved Code No. 347-Supplement No. 12 Registry No. 1399-65A 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

LOCOMOTIVE APPLIANCE 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JUNE 5, 1934 

WE DO OUR PART 

UNIV. OF F1 LI . 

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UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 347-Supplement No. 12 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

LOCOMOTIVE APPLIANCE INDUSTRY 

As Approved on June 5, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE L OCOMOTIVE 

APPLIANCE INDUSTRY 

A DIVISION OF 'l'HE MACHI ERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provi ions of Title I of the National Industrial 

Recovery Act, approved June 16. 1933, for approval of a Supplemental Code of Fair Competition for the Locomotive Appliance 

Subdivision of :Machinery and Allied Products Industry, and hearing having been duly held thereon and the annexed report on said 

Supplementa l Code containing finding with re pect thereto, having 

been made and dire tecl to the President : 

OvV. THEREFORE. on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority v sted jn me by Executive Orders of the 

President including Executive Order No. 6543-A, dated December 

30 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Supplemental Code complies 

in all respect ,vith the pertinent provisions and will promote the 

policy and purpose of said Title of said Act; and do hereby order 

that ajcl Supplemental Code of Fair Competition be and it is hereby 

approved. 

HuaH S. J oHNSON, 

Ad1ninistrator for I ndustrial R ecovery. 

A pi:;ro, al recommended : 

A. R. GLANCY 

Division Adm,inistrator. 

,v ASH! GTON. D .C., 

Jime 5, 1934. 

65341 °-6G7-~5-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the Supplemental Code of Fair Competition for the Locomotive Appliance Subdivision of the Machinery and 

Allied Products Industry, Public Hearing having been conducted 

thereon in Washington, D.C., April 27, 1934, in accordance with the 

provisions of Title I of the National Industrial Recovery Act. 

GENER.AL STA'.r:EMENT 

The Locomotive Appliance Institute being truly representative of 

this Subdivision of the i1achinery and Allied Products Industry, 

has submitted a Supplemental Code of Fair Competition to the 

Basic Code for the Machinery and Allied Products Industry, approved by you J\tiarch 17, 1934. The Locomotive Appliance 

Industry is a capital goods industry being engaged in the manufacture and/ or sale of appliances, devices or attachments and replacements thereof specially designed and manufactured for use in the 

construction or repairing of locomotives as u eel for tractive power. 

ECONOlVIIC EFFECT 

This Subdivision suffered considerably from the effects of the 

Depression. The aggregate annual ~ales of the Subdivision declined 

from $24,855 000 in 1929 to $3 818,000 in 1933: or eighty-four per cent 

while the aggregate production capacity remained about the same at 

approximately $24.,000,000 and the aggregate invested capital .at 

about $30,000,000. 

E timated employment of factory workers declined from 1,975 in 

1929 to a minimum of 910 in the first quarter of 1933 or 53.9% and 

increa eel thereafter to approximately 1,244 in ovember 1933 or 

36.7% over the first quarter of 1933. Employment in oyember 1933 

wa. 37% below the 1929 level. 

Thirty-eight per cent of the factory worker were vrnrkin<T more 

than forty ( 40) hours per week durina a repr entative week of 

June 1933. The average work-w ek decline 1 from 0.5 hour.~ in 

1929 to 3u.8 hours in June 1933, and then incre:i ed to 35.9 in ovember 1933. 

Due to the fact that the Subdivi ion in November 193 wa p rating on a 35.9 hour w ek probably no in rea. e in employm nt may 

be exp ctecl a a re~ult of the ad ption of a forty-hour week. 

FINDING 

The Deputy lministrator in his final r port t me on aid Supplemental ode havina f und a her in t forth n.n l on the ba i of all 

the proceedings in this matt r: 

(2) 
3 

I find that: 

(a) Said Supplemental Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the 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 eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity 

of industries, by avoiding undue restriction of production ( except 

as may be temporarily required), by increasing the consumption of 

industrial and agricultural products through incre~sing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said subdivi ion 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 respec~s 

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 group is an industrial association truly representati·ve of 

the aforesaid Subdivision of the Industry; and ti1at said association 

imposes no inequitable restrictions on admission to membership 

therein. 

( d) The Supplemental Code is not designed to and will not permit 

monopolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not eliminate 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, 

JUNE 5, 1934. 

HUGH S. JOHNSON' 

Ad1ninisfrator. 
SUPPLE11E TARY CODE OF FAIR COMPETITION FOR 

THE LOCOMOTIVE APPLIANCE INDUSTRY 

A DIYI ION OF THE l\:IACHI:NERY .AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the ational Industrial Recovery ctz the following provisions are established as a Supple- mental ode of Fair Competition for the Locomotive Appliance 

ubdivision of the Machinery and Allied Products Industry, and 

taken toge._her with the Code of Fair Competition of 11:achinery 

and Allied Products Industry, to which it is a supplement, shall be 

the standard of fair competition for this Subdivis10n, and shall be 

binding on each employer therein. 

ARTICLE II-DEFINITIONS 

"Applicant" means the Locomotive Appliance Institute, a trade 

organization, all members of which are engaged in the manufacture and/or sale of the products of the Locomotive Appliance Subdi i ion of the 11achinery and Allied Products Industry, which 

oro-anization i truly representatfre of this ubdivision. 

Indu try ' means the :Machinery and Allied Products Industry, 

a defined in its Code of Fair Competition as approved by the 

Pre ident and as uch definition may from time to time be amended. 

' ubdivi ion" mean this Locomotive Appliance Subdivision of 

the Iachinery and Allied Products Indu try as defined and set forth 

in rti le II as amended, of the Code of Fair Competition of the 

fachinery and Allied Products Indu try as follows: 

"Locomotive Appliance Subdivi~ion means the manufacture 

and/ or ale of appliances deYices or attachments and replacement 

parts thereof specially designed and manufactured for use in the 

constru tion or repairing of locomotives as u ed for tractive power; 

pro, ided, however, that uch appliances, devices, and/or attachn1ents 

and replacement parts thereof when manufactured by builders of the 

afore ail locomoti-\ es or when within the scope of another code are 

not included in thi ode. 

' Code" means the Code of Fair Competition of the 1:achinery 

and Alli cl Pro lu ts Industry as approved by the Pre ·ident and as 

from time to time amend d. 

P r on ' mean a natural p,_,r on a partner hip a corporation, 

an a so iati n, a tru~t a tru tee, a tru tee in bankrupt y, a rccei~ er 

or oth r ntity. 

Employ r mean an person engao- din this Subdivision of the 

Indu tr eith r in hi · own b half or a an employer of labor. 

Employ e ' m an anyone who is omplo el 1n the ubdivision 

by any u h ernpl ycr. 

(4) 
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" The Act " means Title I of the National Industrial Recovery 

Act. 

"The President" means the President of the United Sta~s. 

" The Administrator " means the Administrator for Industrial 

Recovery. 

" Basic Code Authority " means the Code Authority for the Machinery and Allied Products Industry as constituted in the C0de. 

"Code Authority" means the Code Authority constituted for this 

Subdivision~ as provided by the Code and by this Supplemental Code. 

ARTICLE III-ADOPTION OF EMPLOYMENT PROVISION s OF CODE 

The following Articles of the Code, viz : Article III, " Hours "; 

Article IV, "vVages "; and Article V, "General Labor Provisions" 

are hereby made a part of this Supplemental Code, with the same 

effect as if they were written into this Supplemental Code. 

ARTICLE IV-ADOPTION OF OTHER PPOVISIONS OF CooE 

The following Articles of the Code, viz : Article VI, "Administration", to the extent that it shall be applicable to the administration 

of this Supplemental Code as such or as it may hereafter be administered as an autonomous Code; Article VIII , "Modifications and 

Termination"; Article IX, "Withdrawal" and Article X, "Monopolies " are hereby made a part hereof with the same effect as if they 

were written into this Supplemental Code. 

ARTICLE V-ADMINISTRA'TION 

(a) A Code Authority for this Subdivision is hereby constituted 

to administer, supervise and facilitate the enforcement of the Code 

and of this Supplemental Code in the manner and to the extent provided in the Code and in this Supplemental Code. Such Code 

Authority shall consist of: 

(1) The Executive Committee of the Locomotive Appliance Institute, consisting of three members. · (2) One additional member to be elected in any fair manner, 

with the approval of the Administrator, by employers in this Subdivision entitled to vote thereon, us her~inafter provided, who are 

not members of the Applicant, if so desired by such nonmembers. (3) The Administrator may in his discretion appoint one additional member, ( without vote and without expense to the Subdivision). 

(b) Code Authority may adopt rules and regulations to govern 

its procedure and employ uch personnel as it may deem necessary. 

( c) Any employer in this Subdivision shall be eligible for men1-

bership in the Locomotive Appliance Institute. 

(cl) Any employer shall be entitled to vote, subject to the provisions of section (a) of this Article, at the election of the elective 

member of Code Authority and at other meetings of employers and 

share in the benefits of the activities of Code Authority and may 

participate in any endeavors of Code Authority in the preparation 

of any amendments or revisions of or additions or supplements to 

this Supplemental Code by paying or agreeing to pay as and when 
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assessed his or its proper pro rata share of the cost of preparing, sub- 1nitting and administering this Supplemental Code as determined 

by Code uthorjty. The cost of preparing submitting and administering thi Supplemental Code shall be borne by employers pro rata 

in the proportions that the amount in dollars o:f t he yearly average 

net sales of products of the Subdivision made by the respective em- ployers during the five preceding calendar years bears to the aggre- gate of the amount in dollars of the yearly average net sales of product of the Subdivision made by all employers during such five 

preceding calendar year . 

( e) If formal complaint is made to Code Authority that provisions of this Supplemental Code have been violated by any employer, 

the Code Authority may cause such investigation or audit to be made, 

to the extent permitted by the Act, as may be deemed necessary. 

ARTICLE VI-UNFAIR PRACTICES 

Each of the following acts and prac ices is deemed to be inimical 

io the best interests of the Subdivision, and of the public, and each 

is, therefore, hereby declared to be ::tnd to constitute, an unfair 

method of competition, viz : 

1. No employer shall give, permit to be given, or offer to give -anything of value for the purpose of influencing or rewarding the 

~ction of any employee, agent, or representative of another in relation to the business of the employer of such employee, the principal 

of such agent or the represented party without the knowledge of 

such employer, principal or party. Commercial bribery pro-vi ions 

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. 

2. No employer shall publish advertising ( whether printed, radio, 

di play or of any other nature), which is misleading or inaccurate 

in any material particular, nor shall any member in any way misrepresent any goods (includi.l).g but without limitation its use, trade- mark, grade, quality, quantity, origin, size, substance, character·, nature, fini h, material, content or preparation) or credit terms, values, policies, services, or the nature or form of the business conducted. 

3. It shall be an unfair trade practice in the Subdivision to 

engage in :l.estructive price cutting. 

ARTICLE VII-SALE FOR EXPORT 

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

shipping or marketing, shall apply to export trade or sal s or shipment for export trade . " Export Trade ' shall be as defined in the 

Export Trade Act adopt 0 d April 10, 1918. 

RTI LE VIII-MODIFICATIONS 

(a) s provided by e tions 10 (b) of the Act, the Pre ident may 

from time to time can °1 or modify any order, approval, license, rule 

or regulation i sued under Title I of the Act. 
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(b) The provisions of this Supplemental Code, other than those 

required by the Act to be included therein, may, with the approval 

of the President, be from time to time amended, revised, added to, or supplemented. Any amendments or revisions of or additions or 

supplements to this Supplemental Code proposed by Code Authority 

and adopted at a meeting of employers by the concurring affirmative 

vote of employers entitled to cast at J:~ast two-thirds of all the votes 

that might be cast at a m0 eting of employers if all employers then 

entitled to vote were present thereat, shall be in full force and effect 

upon approval by the President. 

ARTICLE IX-vv rTHDRA w AL 

As provided by Article IX of the Code, upon thirty (30) days 

notice to Basic Code Authority and to the Administrator, this Sub- division may, at a meeting of employers, by the concurring ::dfirma- tive vote of employers entitled to cast at le.ast two-thirds of all the 

votes that might be cast at such a meeting if all the employers then 

entitled to vote were present thereat, withdraw from the jurisdiction 

of Basic Code Authority. Thereafter, this Supplemental Code, to- gether with the provisio:ns of the Code, except such portions of Arti- cles I, II, VI and VII thereof, as are not pertinent thereto as 

determined by the Code Authority and the Administrator, shall 

become the Code governing this Subdivision and the Code Authority 

shall for this Subdivision become the sole Code Authority and shall 

perform all the functions thereof with respect to such Code. 

ARTICLE X-MoNOPOLrns 

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 construed or 

applied so 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 

employers engaged in the Subdivision on the eleventh day after its 

approval by the President. 

Approved Code No. 347-Supplement No. 12. 

Registry No. 1399-65A. 

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