~ lj ' ' / C<fApproved Code No. 385 Registry No. 1502-1-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

·RAILROAD SPECIAL TRACK 

EQUIPMENT 

MANUFACTURING INDUSTRY 

AS APPROVED ON APRIL 6, 1934 

WE DO OUR PART 

. ----

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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 ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Approved Code No. 385 

CODE OF FAIR COMPETITION 

FOR THE 

RAILROAD SPECIAL TRACK EQUIPMENT 

MANUFACTURING INDUSTRY 

As Approved on April 6, 1934 

ORDER 

.APPROVING CODE OF FAIR COMPETITION FOR THE RAILROAD SPECIAL TRACK 

EQUIPMENT 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 Railroad Special Track Equipment 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 : 

NOW, THEREFORE, on behalf of the President of the United 

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

pur:mant 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 

o.f said Title of said Act; and do hereby order that said Code of 

Fair Competition be and it is hereby approved subject to the following conditions: that the provi;;ions of Article VII, Section 2, insofar 

as they prescribe a waiting period between the filing with the Secretary or Assistant Secretary of the Code Authority (i.e. actual receipt by the Code Authority) and the effective date ot revised price 

lists or revised terms and conditions of sale and paYJ?ent, be and 

they are hereby stayed pending my further order either within a 

period of sixty (60) days from the effective date of this Code, or 

after the completion of a ,study of open price associations now being 

conducted by the National Recovery Administration. 

HuGH S. JoHNSON, 

Administ1·ator for Indu-strial RecoveMJ. 

Approval recommended: 

A. R. GLANCY, 

Division Acbninistrator. 

'~TAsiiiNGTON, D.C., 

April 6, 1934. 

51565°--.--482-42----34 (165) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The W lvite House. 

Srn: This is a report on the Code of Fair Competition for the 

Railroad Special Track Equipment Manufacturing Industry as revised after the Public Hearing conducted thereon in Washington, 

D.C., on December 29, 1933 in accordance with the provisions of the 

National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

The Code provides for a normal maximum forty ( 40) hour week 

of six (6) days and an eight (8) hour day except as hereinafter 

provided. 

Executives, those employed in a supervisory capacity or in engineering or laboratory work, individually receiving pay at the rate 

of Thirty-Five Dollars ($35.00) or more per week and outside salesmen are exempted from the hour provisions. 

Watchmen may work fifty-six (56) hours during a work week of 

six ( 6) days. 

Firemen and power plant engineers may be employed forty-four 

(44) hours during a work week of six (6) days. 

Repair men, maintenance men and shipping clerks may be employed forty-four ( 44) hours during a work week of six (6) days 

provided one and one-half (11j2 ) times the normal rate of pay is 

paid for overtime. 

Office employees may be employed forty-eight ( 48) hours in any 

one week in any one calendar month. 

During any six (6) weeks in any six (6) months' period beginning 

January 1 and July 1 of each year, any factory employee n1ay be permitted to work up to forty-eight ( 48) hours per week provided one 

and one-half (11/2 ) times his regular rate of pay is paid :for overtime. 

These maximum hours shall not apply to any employee on emergency maintenance or emergency repair work involving breakdowns 

or protection of life or property or on emergencies occasioned by the 

necessity for the services of certain specially skilled employees which 

cannot be taken care of by the employment of additional men provided one and one-half (11j2 ) times the normal rate shall be paid 

for overtime. 

Provision is made for one day of rest in seven and the standard 

clause regarding employment by several employers is incorporated 

in the code. 

The standard minimum wage rate is forty (40) cents per hour in 

the North and thirty-two (32) cents in the States of South Carolina, 

Alabama, Mississippi, Louisiana and Tennessee. 

Office employees shall receive a minimum of $15.00 per week provided that office boys and girls may be paid not less than eighty (80) 

(166) 
167 

per cent of this minimum and shall constitute not more than five (5) 

per cent of the clerical and office employees. 

Employers shall make equitable adjustments for all employees 

receivino- more than the minima and the Code Authority will report 

all such badjustments to the Administrator. 

The minimum rate shall apply to all employees irrespective of 

whether they are actually compensated on a time rate, piece work or 

other basis. 

No person under sixteen (16) years of age shall be employed in 

the Industry, nor shall any one under eighteen (18) be employed 

in the manufacture, repair and/or handling of the products of the 

Industry. 

GENERAL STATEMENT 

The Railroad Special Track Equipment Industry is a capital goods 

industry and comprises the manufacture and sale of special Tee-Rail 

track work of carbon steel and other metals for use in railroad track 

made with standard rails of sixty pounds per yard and heavier. 

There are approximately twenty concerns in the Industry operating 

more than twenty-seven plants. The Industry has been seriously 

affected by the depression as its prosperity is in direct ratio to the 

purchasing power of the railroads. Available statistics show a total 

production for eighteen concerns in the Industry in 1928 of $18,000,000 

and for fifteen concerns in 1933 of $1,400,000, a decrease of 92.2%. 

In 1933, the Industry employed 1,621 persons, a decrease of 51.7% 

from 1929. 

No female factory workers are employed in this Industry. 

Payrolls of seventeen concerns in 1929 amounted to $4,720,368 and 

$1,046,500 in 1933, a decrease of about 78%. 

Average hours per man per week for factory workers declined 

from 51.5 hours in 1929 to 25.3 hours in June 1933, a decrease of 

50.8% and the average hourly rate for factory wage earners declined 

25.7% in that time. 

The adoption of the President's Reem:e_loyment Agreement increased factory employment 14.1% between June 1933 and October of 

the same year; factory payrolls increased 56.2% and office payrolls 

9.3%. Average hours per man per week showed an improvement of 

20.9%; the average hourly rates for factory wage earners increased 

14% and their average weekly earnings showed an unprovement of 

36.5%. The proposed wage provisions will substantially increa e 

payrolls but the hour provisions will not materially increa e employment over the President's Reemployment Agreement re ults. Reemployment in the Industry can only be accompli ·hed by a sub tantial 

increase in the demand for its products. The immediate pro pect of 

the inflow of Public 1Vorks Admini tration ftmds will favorably 

affect this Industry. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Code having found a herein et forth and on the ba is of all 

the proceedings in this matter: 

I find that: 

(a) Said Corle is well le io-ned to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 
168 

removal of obstructions to the free flow of interstate and foreign 

comn1erce 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 maintairung 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 increasing purchasing power, by reducing and relieving unemployment, by improving standards of 

la.bor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Code as approved complies in all respects w1th 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 group truly representative of the aforesaid Industry; and that said group imposes no inequitable restrictions on admission to membership therein. 

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

monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

sn1all 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 Code. 

For these reasons therefore I have approved this Code subject to 

the following conditions: that the provisions of Article VII, Section 

2, insofar as they prescribe a waiting period between the filing with 

the Secretary or Assistant Secretary of the Code Authority (i.e. 

actual receipt by the Code Authority) and the effective date of revised price lists or revised terms and conditions of sale and payment, 

be and they are hereby stayed pending my further order either within 

a period of sixty (60) days from the effective date of this Code, or 

after the completion of a study of open price associations now being 

conducted by the National Recovery Administration. 

Respectfully, 

APRIL 6, 1934. 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION FOR THE RAILROAD 

SPECIAL TRACK EQUIPlHENT 11ANUF ACTURING 

INDUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery 

Act, this Code is established as a Code of Fair Competition for the 

Railroad Special Track Equipment lVIanufacturing Industry; its 

provisions shall be the standards of fair competition for such 

Industry and shall be binding upon every m-ember thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The terms "President", "Act" and "Administrator" 

as used herein shall mean resfectively the President of the United 

States, the National Industria Recovery Act and the Administrator 

for Industrial Recovery under Title I of said Act. 

SECTION 2. The term "Railroad Special Track Equipment l\1anufacturing Industry" as used herein means and includes the manufacture and sale of all special Tee Rail track work of carbon steel, 

manganese steel and/or other metals for use in railroad track made 

with standard tee rails of sixty pounds per yard and heavier. It 

includes all switches, switch points, switch stands, ground throws, 

frogs, crossings, stock and special connecting rails, guard rails, guard 

rail clamps, bridge rails, and expansion joints and repairs made and 

all parts furnished for above items. It shall not include electrical 

apparatus for operating any special track equipment, compromise 

joints, tie plates, rail braces, gauge rods, except when furnished in 

connection with the above specified items, rail except when sold in 

connection with the above items and on which additional work other 

than drilling is performed. 

SEcTION 3. The term "member of the Industry" means and includes but without limitation, any individual, partnership, association, corporation or other form of enterprise engaged in the Industry 

either as an employer or on his or its behalf. 

SECTION 4. The term" employee" as u ed herein includes any and 

all persons engaged in the Industry, however compensated, except a 

member of the Industry. 

SECTION 5. The term "employer" as used herein, includes anyone 

by whom any such employee is compensated or employed. 

SEcTION 6. The term "publish ' means to make available to the 

public. 

ARTICLE III-l-IouRs 

SEC'~ION 1. lrl axim'u,.m H ours.-N o employee hall be permitted to 

work 1.n excess of forty ( 40) hour in any on we k or eight (8) 

hours 1n any t\\enty-four (24) h ur p riocl beo-innina at midnirrht, 

except as herein otherwi e pr vid d, n r more than ix (G) clays 0per 

week. 

SE?~ON 2. Exc~ptions as to Ilours-(a) Executives, tc.-The 

provisiOns of sectwn 1 abov slnll not apply to executive , those 

(lGD) 
170 

employed in a supervisory capacity or in engineering, or laboratory 

work, individually receiving pay at the rate of thirty-five (35) 

dollars or more per week and outside salesmen. 

(b) W atchmen.-vVatchmen may not be employed in excess of 

fifty-six (56) hours per week. 

(c) Fi1·emen and Power-Pl(J;nt Engineers.-Firemen and powerplant enainecrs may not be employed in excess of forty-four (44) 

hours per week. 

(d) Repair 1nen, etc.-Repair men, maintenance men, and shipping clerks may be employed up to forty-four ( 44) hours per week, 

provided at least one and one-half times their reg"1-llar rate of pay 

::;hall be paid for time worked in excess of forty ( 40) hours in any 

one week or eight (8) hours in any twenty-four (24) hour period. 

(e) Office Employees.-Office employees may be employed up to 

forty-eight ( 48) hours in any one week in any one calendar month. (f) Ordvnary Overtime for Seasonal Periods.-During any six 

( 6) weeks in any six ( 6) months' period beginning January 1 and 

July 1 of each year any factory employee may be employed up tQ 

forty-eight ( 48) hours per week provided at least one and one-half 

times such employee's regular rate of pay shall be paid for hours 

worked in exce::;s of forty ( 40) hours in any one week or eight ( 8) 

hours in ~ny twenty-four (24) hour period. 

(g) Em-ergency Overti1ne.-The maximum hours fixed in section 1 

above shall not apply to any employee on emergency maintenance or 

emergency repair work involving breakdowns or protection of life 

or property, or on emergencies occasioned by the necessity for the 

services of certain specially skilled employees which cannot be taken 

care of by the employment of additional men, but in any such special 

case at lea::;t one and one-half times such employee's re~lar rate of 

pay shall be paid for hours worked in excess of forty ( 40) hours in 

any one week or eight (8) hours in any twenty-four (24) hour 

period. 

SECTION 3. No employer shall knowingly permit any employee 

to work for any time which when totalled with that already performed for any other employer or employers exceeds the maximum 

hours permitted herein. 

ARTICLE IV-vv AGES 

SECTION 1. No employee shall be paid less than at the rate of 

forty ( 40) cents per hour, except as hereinafter provided. 

SECTION 2. No employee shall be paid less than 32 cents per hour 

in the following states: South Carolina, Alabama, Mississippi, 

Louisiana and Tennessee. 

SECTION 3. The minimum wage that shall be paid by any employer 

to office employees, except outside salesmen, shall be at the rate of 

fifteen (15) dollars per week. 

SECTION 4. Office boys and girls shall be paid not less than eighty 

( 80) per cent of the minimum rate established in Section 3 above. 

The total number of office boys and girls receiving less than the 

minimum rate shall not exceed five per cent of the total number of 

employees engaged in clerical or office work. 

SECTION 5. The rates of pay of all hourly employees covered by 

Section 1 and of the employees covered by Sections 2, 3 and 4 hereof 
171 

receiving more tha.n the minimum rate as herein provided but less 

than at the rate of thirty-five ($35.00) dollars per week which have 

not subsequent to June 16, 1933, been equitably adju ted, shall be 

so adjusted not later than fifteen ( 15) days subsequent to the effective date of this Code, provided, however, that in no event shall 

rates of pay of such employees be reduced. Not later than sixty (60) 

days after the effective date of this Code the Code Authority shall 

report to the Administrator the action taken by all employers in 

the Industry since May 1, 1933 in making such adjustments. 

SECTION 6. This Article establishes a minimum compensation, irrespective of whether an employee is actually compensated on a time 

rate, piece-work, or other basis. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. No person under sixteen ( 16) years of age shall be 

employed in the Industry and no person under eighteen (18) year~ 

of age shall be employed in an employer's plant in the Industry in 

the manufacture, repair andjor handling of the products of the ' 

Industry. In any State an employer shall be deemed to have com· 

plied with this provision as to age if he shall have on file a certifl .. 

cate or permit duly signed by the Authority in such State 

empowered to issue employment or age certificates or permits 

showing that the employee is of the required age. 

SECTION 2. Pursuant to Section 1 (a) of Title I of the Act, the 

Code shall be subject to the following conditions: 

"(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 ern..-

ployers 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; 

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

required as a condition of employment to jom any company union 

or to refrain from joining~ organizing, or assisting a labor or~anization 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." 

SEcTioN 3. Employers shall not reclassify employees or duties 

of occupations performed or engage in any other subterfuge for the 

purpose of defeating the purposes of this Code or of the Act. 

SEcTION 4. Every employer shall make reasonable provisions for 

the safety and health of his employees at the place and during the 

hours of their employment. Standards for safety and health shall 

be submitted by the Code Authority to the Administrator for approval within six months after the effective date of this Code. 

SECTION 5. Within each State the Code shall not supersede any 

laws of such State imposing more stringent requirements on employers, regulating age of employees, wages, and hours of work or 

general working conditions than are provided under this Code. 

SECTION 6. All employers shall po t complete copies of this Code 

in conspicuous places accessible to all employees. 
172 

ARTICLE VI-Am\HNISTRATION OF THE CoDE 

SECTION 1. There shall be forthwith established a Code Auth.ority 

of one representative from each member of the Industry complying 

with the requirements of this Code and sustaining its reasonable 

share of the expense of its administration. Each member of the Code 

Authority shall have as many votes as the member of the Industry 

represented by him is entitled to pursuant to the provision of Section 4 of this Article. In addition the Administrator may appoint 

not to exceed three members of the Code Authority without vote. 

The members who may be appointed by the Administrator, together 

with the Administrator, shall be given notice and may sit at all 

meetings of the Code Authority. 

SECTION 2. 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 complying 

with the requirements of this Code and sustaining their reasonable 

share of the expense of its administration. Such reasonable share 

of the expense which shall be assessed by the Code Authority shall 

bear the same relation to the total thereof as the number of votes 

pursuant to the provisions of this Code at the time of any such 

assessment shall bear to the total number of votes that might be cast. 

Failure of any assenting member to pay the amount of any assessment 

against such member for a period of thirty days after the date on 

which it became payable shall prohibit such member from participating in the activities of the Code Authority. 

SECTION a. The Code Authority may from time to time appoint 

such committees andjor agents as it shall deem necessary or proper 

in order to effectuate the purpose of the Code, and it may delegate 

to any such committee andjor agent generally or in particular 

instances such of the powers and duties of the Code Authority 

under the Code as it shall deem necessary or proper in order to 

effectuate such purpose but nothing in this section shall relieve the 

Code Authority from the responsibilities imposed upon it by the 

Code. 

SECTION 4. At each meeting of the members entitled to vote each 

member thereof shall have as many votes as shall equal the quotient 

obtained by dividing by 500 the aggregate amount in net tons of 

products shipped by said member for consumption in the United 

States during the preceding calendar year. Fractions in such quotients shall be disregarded; provided, however, that each member 

shall have at least one vote. All questions as to the number of votes 

which each member shall be entitled to cast at any meeting o£ the 

members thereof shall be determined by the Code Authority. Any 

member of the Industry who shall be entitled to vote at meetings 

o£ the members may vote by proxy in writing, duly executed by said 

member, and filed with the Code Authority. Any such proxy may 

be for a specified meeting or be a general proxy for any or all 

meeting that may be held until such proxy shall have been revoked 

by an instrument in writing duly executed by the member which 

gave such proxy and filed with the Code Authority. 

SEcTION 5. Each trade or indu trial association directly or indirectly participating in the selection or activities of the Code Author-
173 

ity shall (1) impose no inequitable re trictions on admi.·. ion to 

membership and (2) submit to the Administrator true copie of its 

articles of a ociation, by-law , regulations, and any amendm.ents 

when made thereto, together with such other information a to 

men1bership or organization, as the Administrator may deem necessary to effectuate the purposes of the Act. 

SECTION 6. In order that the Code Authority shall at all times 

be truly representative of the Industry, and in other re pects comply 

with the provisions of the Act, the Administrator may pre,scribe 

such hearings as he may deem proper; and thereafter if he hall find 

that the Code Authority is not truly representative, may require an 

appropriate modification in the method of selection of the Code 

Authority. 

SECTION 7. If the Administrator shall determine that any action 

of a Code Authority or any agency thereof may be unfair or unjust 

or contrary to the public interest, the Administrator may require 

that such action be su,spended to afford an opportunity for investigation 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 Administrator approves or unless he shall fail 

to disapprove after thirty days' notice to him of intention to proceed 

with such action in its original or modified form. 

SECTION 8. The Code Authority shall have the following further 

powers and duties: 

(a) To use its best efforts to insure the execution of the provisions 

o.f this Code and provide for the compliance of the Industry with 

the provisions of the Act. 

(b) To adopt bylaws and rules and regulation,s for its procedure 

and for the administration of the Code. 

(c) To obtain from members of the Industry through an impartial 

agency such information and reports as are required for the administration of the Code and to provide for submission by members of 

such information and reports as may be necessary for the purposes 

recited in SeA:tion 3 (a) of the Act; which information and reports 

shall be submitted to the Administrator and/or such Government 

agencies as the Administrator may designate provided that nothing 

in this Code shall relieve any member of the Industry of existing 

obligation,s to furnish report-s to any Government agency. All statistics, data and information filed pursuant to the provisions of the 

Code, s4all be deemed confidential and shall not be disclosed to any 

member of the Industry in other than composite form, unle s disclosure in detail shall be deemed to be es,sential in order to effectuate 

the policies of Title I of the Act. 

(d) To take such action as may be available to it to secure from 

members of the Industry an equitable and proportionate payment of 

the reasonable expenses of maintaining the Code Authority and its 

activities subject to review by the Administrator. 

(e) To cooperate with the Administrator in regulating the u,se 

of any N.R.A. insignia solely by those members of the Indn. tr. who 

are complying with thi Corle. (f) The Code uthority . hall be deemed to have eli charged its 

full duty under the ode with re pect to any violation or alleged 

violation of the Code ''hen it hall have exercised uch po" rs as 
174 

are at the time legally conferred upon it and in the event of its 

inability to legally enforce compliance with the provisions of the 

Code shall have certified the facts available to it with respect to 

such violation or alleged violation to the Administrator or other 

appropriate Governmental Authority. 

ARTICLE VII-TRADE PRACTICES 

SECTION 1. Wherever used in the Code the terms hereinafter in 

this Section 1 defined shall, unless the context shall otherwise clearly 

indicate have the respective meanings hereinafter set forth. The 

definition of any such term in the smgular shall apply to the use 

of such term in the plural and vice versa. 

(a) The term " period of free credit " means the period of time 

between the date of a shipment of a product to the purchaser of 

such product and the date from and after which such purchaser 

shall be required to pay interest on the purchase price of such 

product or any part thereof which shall not have been paid prior to 

the expiration of such period. 

(b) The term "date of invoice" means the date of the invoice of 

any product. 

(c) The term " discount for early payment " means the amount of 

the deduction allowed for the payment of an invoice of products 

before the expiration of the period of free credit in respect thereof. 

SECTION 2. Each member of the Industry shall within ten ( 10) 

days after written reguest by the Code Authority, and subject to 

the provisions of Section 4 hereof, publish and file with the Secretary or Assistant Secretary of the Code Authority a schedule of its 

prices applying to acknowledged standard frogs, switches, standard 

parts thereof and appurtenances. From and after the expiration of 

such ten (10) days, each member shall publish and at all trmes maintain on file with the Secretary or Assistant Secretary of the Code 

Authority a list showing selling prices for such standards and shall 

not make any change in such prices except by the publishing and 

filing by such member with the Secretary or Assistant Secretary of 

the Code Authority of a new list of such prices, which new list after 

filing shall become effective in seven (7) days but not prior thereto. 

The prices so filed shall be f.o.b. such member's plant or plants, and 

except to meet existing competition shall be not less than the cost 

of such product to such member determined by a method to l:]e established by the Code Authority and approved by the Administrator. 

All prices so filed shall be publjshed. 1 

SECTION 3. No product designated in any member's list of prices 

so filed shall be sold by such member of the Industry to any 

purchaser. 

(a) at a price f.o.b. any of its plants other than the applicable 

price filed by such member at said ~lant, or 

(b) at a price f.o.b. point of dehvery to the purchaser other than 

such member's filed pr1ce with carrying charges at published tariff 

rates added; provided, however 

(c) That selling below such prices filed by such member to meet 

competition by a competitor whose prices do not violate this Code 

1 See Paragraph 2 o! order approving this Code. 
175 

on such designated products on which such member or any n1ember 

has filed prices (i.e., selling at a price below such filed prices which 

will give the purchaser the same net price as that provided by the 

price of any other member of the Industry, taking into consideration 

any advantages accruing to the purchaser on account of its participation in transportation charges) shall not constitute a violation of 

the Code. 

SECTION 4. The Code Authority subject to the disapproval of the 

Administrator shall determine what are acknowledged standard 

frogs, switches, standard parts thereof and appurtenances purchased or being considered by two or more purchasers within the 

contemplation of Section 2 of this Article on which prices shall 

be filed. 

SEcTION 5. Products of the Industry that are not determined as 

standard by the Code Authority subject to the disapproval of the 

Administrator are to be regarded as "special" and be subject to 

the following conditions: No member of the Industry will sell 

any special product to any purchaser (a) at a price f.o.b. any of 

its plants less than the cost of such product, determined by a method 

to be established by the Code Authority subject to the approval of 

the Administrator to such member at said plant, or (b) at a price 

f.o.b. point of delivery to the purchaser less than the said cost o:f 

such product to such m.ember with carrying charges at published 

tariff rates added; provided, however, (c) that selling below cost 

to meet existing competition in price by a competitor whose prices 

do not violate this Code on products of equivalent specifications 

shall not constitute a violation of the Code; and, provided (d) that 

selling below cost in order to dispose of any obsolete items or materials shall not be deemed a violation of the Code. 

SECTION 6. Whenever any member of the Industry shall file with 

the Code Authority a written complaint alleging that any other 

member of the Industry has made a sale of a product at a price 

which constitutes a violation of the Code and the Code Authority 

shall declare by a vote of three-fourths of all of its members entitled 

to vote that said complaint appears to be justified the Code Authority shall have power to investigate the price at which said sale shall 

have been made. No member of the Code Authority shall vote upon 

any question involving a violation of the Code by the member of 

the industry represented by such member. 

SECTION 7. For all the purposes of these sections 1 to 7 a delivery 

of any product made pursuant to a contract of sale shall be regarded 

as a sale thereof made at the time of the making of such contract 

and a sale made by any member of the Industry indirectly through 

any affiliated company of such member shall be deemed to be a sale 

made by such member. 

ARTICLE VIII-UNFAIR PRACTICES 

The following described acts shall constitute unfair practices and 

any member of the Industry who shall directly or indirectly through 

any officer, employee or agent or representative, knowingly use or 

employ any such unfair trade practice shall be guilty of a violation 

of the Code. 
176 

(a) Giving, permitting to be given, or directly offering 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 of 

such agent or the represented party, without the know ledge of such 

employer, principal or party. This provision 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. 

(b) Procuring otherwise than with the consent of any member 

of the Industry any information concerning the business of such 

member which is properly regarded by it as a trade secret or confidential within its organization, other than information relating to 

the violation of any provisions of the Code. 

(c) Using or substituting without adequate compensation any more 

costly materials superior in quality to that specified by the purchaser 

of any product or using or substituting any material or any method 

of manufacture not in accord with any applicable law, rule or regulation of any governmental authority. 

(d) No member of the industry shall secretly directly offer or 

make any payment or allowance of a rebate, refund, commission, 

credit, unearned discount or excess allowance, whether in the form 

of money or otherwise, nor shall a member of the industry secretly 

offer or extend to any customer any special service or privilege not 

extended to all customers of the same class, for the purpose of 

influencing a sale. 

(e) PublishinO' advertising (whether printed, radio, display or of 

any other nature), which is misleading or inaccurate in any material 

particular1 or in any way misrepresenting any goods (including but 

without lunitation its use, trade-mark, grade, quality, quantity, 

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

preparation) or credit terms, values, policies, services, or the nature 

or form of the business conducted. 

(f) Attempting to induce the breaching of an existing contract 

between a customer or source of supply; nor shall any such member 

interfe:e with or obstruct the performance of such contractual duties 

or services. 

(g) Aiding or abetting any individual, firm, association, corporation or other form of enterprise in any unfair practices. 

(h) Making or giving to any purchaser of any product any 

guarantee or protection in any form against decline in the market 

price of such product. 

(i) I\::nowingly withholding from or inserting in any quotation or 

invoice any statement that makes it inaccurate in any material 

particular. 

(j) Branding or marking or packaging any goods in any 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 of such 

goods. 

(k) Rendering to any purchaser of any product in or in connection with the sale of such product any unusual service, unless fair 

compensation shall be paid by such purchaser. 
177 

(1) Failing to invoice products manufactured pur uant to order 

or contract after such products have been held for thirty day · after 

specified shipping date. 

(m) Accepting an order for the products of the Industry without 

a specified delivery date within twelve months from the date of order 

except orders in connection with specific construction contracts extending beyond a period of twelve months from date of order. 

(n) Shipping of goods on consignment, except under circumstances to be defined by the Code Authority, subject to approval 

by the Administrator, where peculiar circumstances of the Industry 

require the practice. 

( o) Postdating and Predating.-Postdating or predating of quotations, orders, invoices, statements, or other sales documents. 

(p) The standard terms of credit and payment shall be as hereinafter set forth, provided, however, that the Code Authority, subject to the disapproval of the Administrator, shall have power from 

time to time to modify, waive or supplement such standard term of 

credit and payment by regulations, a copy of which shall be filed 

with the Secretary and mailed to each member of the Industry. 

Except in the case of sales made to, or contracts of sale entered into 

with government agencies, in respect of which such goverrunent 

agencies shall impose other terms of credit and payment, no member of the Industry shall allow more liberal terms of credit and payment than those at the time in effect under this Section and such 

regulations. Except as aforesaid all invoices for products sold 

by any member of the Industry after the effective date of the Code 

shall bear interest from and ·after the expiration of the period of 

free credit at the rate of six per cent ( 6%) per annum. 

Maximum Rates of Discount for Early Payment: In the case of 

products shipped from plants located east of the Mi sissippi River to 

Pacific Coast Ports and which shall be invoiced from such plants-lj2 

of 1% if the invoice of such products shall be paid within 25 days 

from the date of such invoice; in all other cases-lj2 of 1%, if the invoice of such products shall be paid within 10 days from the date of 

such invoice; provided, however, in the latter cases that any member 

of the Industry may allow such discount of lj2 of 1% for payment 

within 10 days on the basis of settlements three time in each month, 

as follows: 

(1) On invoices for products dated from the 1st to the lOth inclusive, in any month, such discount may be allowed on payment 

of such invoices on or before the 20th of uch month; 

(2) On invoices for products dated from the 11th to the 20th, 

inclusive, in any month, such discount may be allowed on payment 

of such invoices on or before the 30th of ·uch month; and 

(3) On invoices for products dated from the 21st to the enll of 

any month, such discount may be allowed .on payment of such invoices on or before the lOth of the next following month. 

Any di ·count allowed in accordance with the provi ·ion of this 

Section shall apply only to the invoiced value of the products 

specified therein and not to any part of the tran portation c:harges 

on such products. 

Maximum Period of Free Credit: In the case of products shipped 

from plants located east of the Mississippi River to Pacific Coa t 
178 tt llttttt~m~mit ~ 1111~ li1tli1\ ~t[iitll] tlttttttl 

3 1262 08584 3059 

ports and which shall be invoiced from such plants-45 days; in 

all other cases-30 days. 

ARTICLE IX-EXPORT TRADE 

SEOTION 1. No provision of this Code relating to prices or terms 

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

or hipments for export trade. 

SECTION 2. Subject to the approval of the Code Authority, the 

exceptions established by this Article shall apply also to sales or 

shipments of products of this Industry actually used and directly 

traceable to manufacture for export trade. 

ARTICLE X-AMENDMENT8--TERMINATION 

SECTION 1. The Code may be amended at any time in the manner 

hereinafter provided. Amendments may be proposed by the Code 

Authority by vote of a majority of the members thereof at the time 

in office or other representative group of members of the Industry. 

Amendments so proposed shall be submitted to a meeting of the 

assenting members of the Industry which shall be called for such 

purpose and be based upon application to the Administrator and 

such notice as he may specify. If at such meeting members having 

the right to cast at least 75% of all the votes that might be cast at 

such meeting, if all the members were present thereat, shall vote in 

favor of the adoption of such amendment, such amendment shall be 

submitted by the Code Authority to the Administrator. Every such 

amendment shall take effect as a part of the Code upon the adoption 

thereof by the said members of the Industry, as above provided, on 

the approval thereof by the Administrator. 

The Code shall continue in effect until June 16, 1935, or the earliest 

date prior thereto on which the President shall by proclamation or 

the Congress shall by Joint Resolution declare that the emergency 

recognized in Title I of the National Industrial Recovery Act is 

ended. 

SECTION 2. This Code and all the provisions thereof are expressly 

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

provisions of subsection (b) of Section 10 of the Act, from time to 

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

regulation issued under said Act. 

ARTICLE XI-GENERAL PROVISIONS 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices or to eliminate or oppress or 

discriminate against small enterprises. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the date upon which the Code 

is approved by the President, pursuant to the National Industrial 

Recovery Act. 

Approved Code No. 385. 

Registry No. 1502-1-01. 

0