Approved Code No. 117 Registry No. 1399-33 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

GEAR MANUFACTURING 

INDUSTRY 

AS APPROVED ON NOVEMBER 14, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order • 

________ ....,..wio,W,lii,( of Transmittal 

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U.S. DEPOaTGilft' 

UNITED STATES 

GOVERNMENT P RINTING OFFICE 

WASHINGTON : 1933 

For sale by the Supe rintendent of Documents, Washington. D.C. - - - - - - - - Price 5 cents 
Thls publication is for sale by the Snperinteodent of Documents, Government 

Printing ffice, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Bo ton, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charles..ton, 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.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla. : Chamber of Commerce Building. 

Kan as City, Mo.: 1028 Baltimore Avenue. 

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, Customhou e. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va. : 406 E ast Plume Street. 

Philadelphia, Pa. : 933 ommerctal Tru t Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 ew Po t Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 

{II) 
EXECUTIVE ORDER 

CODE OF F .AIR COMPETITION FOR THE GE.AR MANUFACTURING INDUSTRY 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Code 

of Fair Competition for the Gear Manufacturing Industry, and 

hearings having been held thereon and the Administrator having 

rendered his report containing an analysis of the said code of fair 

competition together with his recommendations and findings with 

respect thereto, and the Administrator having found that the said 

code of fair competition complies in all respects with the pertinent 

provisions of title I of said Act and that the requirements of clauses 

(1) and (2) of subsection (a) of section 3 of the said act have been 

met: 

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

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

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

otherwise, do adopt and approve the report and recommendations, 

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

of fair competition be and it is hereby approved. 

THE WHITE HousE, 

November 14, 1933. 

Approval recommended : 

FRANKLIN D. ~OOSEVELT. 

HUGH s. JOHNSON, 

Adminwtrator. 

(ill) 

21129°-244-8--33 
N OYEMBER 10, 1933. 

The PRESIDENT, 

The White House. 

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

Gear Manufacturing Industry, the hearing having been held in 

Washington, ovember 8, 1933, in accordance with the provisions 

of the National Industrial Recovery Act. 

PROVISIONS AS TO HOURS AND WAGES 

This Code provides for a maximum 40-hour week for all employees except executive, administrative, supervisory, and technical 

employees, and outside sales and service employees receiving 35.00 

or more per week; and watchmen and firemen, provided, however, 

that watchmen and firemen shall not be permitted to work in excess 

of 48 hours per week or in excess of 6 days in any one week. Exception is also made for those branches of the Industry in which seasonal 

or peak demands, the requirements of the continuous gear-making 

processes or break-downs place a temporary burden on such branches. 

In these special cases, such number of hour may be worked as may 

be required, provided that in no such case shall they exceed 48 hours 

in any one week. 

It is further provided that the emergency overtime in excess of 

40 hours per week will not exceed 64 hours during any 6 months' 

period. Time and one half the hourly rate is established for all 

hours worked in excess of the daily scheduled number of hours and 

in excess of 40 hours per week. 

The Code provides for a minimum hourly wage of 40 cent per 

hour, except that apprentices may be employed at a lesser rat , provided written contracts with apprentices are filed with the ode 

Authority, and handicapped employees whose earning capacity is 

limited becau e of age or physical condition. 

Ea h employer shall file with the Code Authority a list of all 

such handicapped persons employed by him, but the number of uch 

persons employed at le s than the minimum rat s shall be limited 

to 2% of the number of his employees. 

minimum wage of $15.00 per w ek hall be paid to cl rical and 

all other employees not covered by the hourly rate except that a 

limited number of office boys or girls may be employed at not 1 

than 0% of the minimum weekly salary. 

Hourly rates, base piecework rate , and alarie above the minimum 

will be equitably adju ted by tho mploy rs of the Indu try who 

have not already made adjustm nt , and in n ca hall th y be 

decrea ed. omplete opie of the Code will be p ted in con picuous places 

acce sible to mployees. 

(IV) 
V 

No person under the age of 16 shall be employed or any person 

under 18 years 0£ age at hazardous occupations. 

ECONOMIC EFFECT OF THE CODE 

Employment in the Industry has shown an increase of approximately 30% in 1933 to date over that 0£ the year 1932. This is attributed partly to the shortening o:f hours and partly to upswing 

in production. There has been an increase 0£ 45% in the number 

0£ workers :for the 4 months' period, May to August, over the first 

4 months o:f the year 1933. At the present time, there are approximately 5,000 employees engaged in the Industry as against 8,000 

in 1929. · 

Adjustments in the wage and salary classifications over the minimum rates, when considered in connection with additional reemployment, should represent an increase in pay roll 0£ approximately 

$120,000 over that o:f 1932. 

FINDINGS 

The Administrator finds that-

( a) The Code as recommended complies in all respects with the 

pertinent provisions 0£ Title I 0£ the Act, including, without limitation, subsection (a) 0£ Section 7 and subsection (b) o:f Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative o:f the 

Gear Manufacturing Industry; and that 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will tend to effectuate the policy 

0£ Title I 0£ the National Industrial Recovery Act. 

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

Respectfully, 

HUGH s. JOHNSON, 

.Administrat01'. 
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CODE OF F Am COMPETITION FOR THE GEAR 

MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act the following provisions are submitted as a Code of 

Fair Competition for the Gear Manufacturing Industry and, upon 

approval by the President, shall be the standard of fair competition 

for this industry. 

ARTICLE II-DEFINITIONS 

The term "industry" as used herein is defined to mean and 

include the manufacture for sale of cut-tooth gears, speed reducers 

(whether manufactured with or without motor and whether or not 

known as mortorized reducers, gear motors or by similar designations), cut-tooth sprockets, and other similar power-transmission 

media; except such of the above described items as are produced by 

any manufacturer within another industry as part of the products 

of such other industry, including finished and semi-finished parts 

thereof and replacement parts therefor and not sold for other uses in 

the general market of the industry herein defined. 

The term "employee" as used herein includes any and all persons 

engaged in the Industry, however compensated, except a member of 

the Industry. 

The term "member of the Industry" includes, but without limitation, any individual, partnership, association, corporation, or other 

form of enterprise engaged in the Industry, either as a manufacturer 

or on his own or its own behalf. 

The term "apprentice" as used herein means an individual ( usually a minor), bound by indenture to serve an employer for a term 

of years at a predetermined wage £or the period of the indenture in 

order to learn a trade, art, or profession. 

The term "member of the Code" includes any member of the Industry who shall expressly signify assent to this Code. 

The term "Act " means Title I of the National Industrial Recovery 

Act. 

The term" President" means the President of the United States. 

The term "Administrator " means the Adrninistrator for National 

Recovery. 

The term "Administration" means the National Industrial Recovery Administration. 

The term "Association" means the American Gear Manufacturers 

Association, a trade association now having its office in the First 

National Bank Building, Wilkinsburg, Pennsylvania. 

The term" Executive Committee" means the Executive Committee 

of the Association. 

(1) 
2 

Th rm' dat ' as u ed her in, is defined to mean the 

l:>v nth da. thi de hall ha e been appr d by the 

Pr . ·id nt. 

RTICLE III-EMPLOYMENT 

required by etion 7 (a) of Title I of the J ational Indu trial 

Reco ery ... c , the following rovisions are included in thi ode: 

(1) That mploy e. hall hav the right to org::mize and bargain 

collectivelJ through repre entatives of their own choo incr and shall 

be free from th int rfer nee, re traint or coercion of employer of 

labor, or their ag nt , in the designation of such repres ntati es or in 

self-organization or in oth r concerted activities for the purpo of 

collective bargainino- or other mutual aid or protection; 

(2) That no employee and no one seeking employment hall be 

required as a condition of emplo1y1nent to join any company union or 

to refrain from joining, organizing, or assisting a labor organization 

of his own choo ing; and 

(3) 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. 

ARTICLE IV- HoURS 

o employee shall be permitted to work in excess of 40 hours per 

week, excluding: 

(1) Executive, administrative, supervisory, and technical employees, and outside sales and service employees, who receiYe $35.00 

or more per week; and 

(3) \Vatchmen and firemen, provided, however, that atchmen 

and firemen shall not be permitted to work in excess of 48 hours 

per week or in excess of six days in any week. 

The foregoing limitations shall not apply to branches of this 

Indu try in which seasonal or peak demands, or the requirements 

of a continuous gear-making process or a breakdown, place an unusual and temporary burden on such branches. In any such ca e 

such nwnber of hour may be worked as are required by the nee ssities of the situation, provided that in no such case shall the hours 

worked in any one week exceed 48, and provided further that the 

number of hour worked in any six months' period in exc of 40 

hour per week ·hall not e ceed 64 hours. 

,Vhere in any ase an em:()loyee works in exce s of the daily 

sch duled numb r of hours or 1n excess of 40 hours in any one week_,, 

su h :xtra time shall be compensated for at not less than one and 

on half times th h urly rate of such employee. 

To employee hall knowingly be permitted to ork for a total 

number of hours in xce s of the number of hours prescribed for the 

w k, whether employed by one or more employers. 

o employer shall reclassify employees or duti of occupations 

perf ormecl for the purpose of defeating the provisions of the Act 

or of this Code. 
8 

ARTICLE V-W AGES 

The minimum wage that shall be paid to any employee shall be 

forty cents ( 40¢) per hour, with the fallowing exceptions : 

(1) App1·entices.-Any employee apprenticed to any employer by 

an indenture made in pursuance of the laws of any State of the 

United States, or by a written contract under any apprentice system established and maintained by an employer, provided such 

agreements are, and each additional agreement as made is, filed with 

the Code Authority, and provided that this exception shall apply to 

such employees only during the period that they are receiving less 

than the minimum rate. 

(2) Handicapped E1nployees.-An individual whose earning capacity is limited because of age or physical or mental handicap may 

be employed on light work at a wage below the minimum established by this Code if the employer obtains from the State Authority 

designated by the Unit.eel States 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, but the 

number of such persons shall be limited to 2% of his employees. 

Clerical Eniployees.-The minimum wage that shall be paid by 

any employer to any of the accounting, clerical, office, service, or 

sales employeBs shall not be less than $15.00 per week; provided, 

however, that office boys or girls, limited in number to not more than 

5% of the total number of employees in any factory, may be paid 

not less than 80% of the above minimum. 

The hourly rates, base piecework rates, and salaries for all duties 

and occupations now paid at more than the minimum herein prescribed shall be equitably adjusted b:y all members of the Industry 

who have not already done so, and 1n no case shall these rates be 

decreased. Reports concerning the action taken, whether prior to or 

after the date 0£ approval of this Code, shall be reported to the Code 

Authority not later than ninety (90) days after the effective date, 

and to the Administrator upon his request. 

No distinction in rates shall be made between male and female 

employees where the same class of work is performed, regardless of 

w_hether compensation ~s calculated on an hourly, weekly, monthly, 

piecework, or other basis. 

Posting.- All employers shall post complete copies of this Code in 

conspicuous places accessible to employees. 

No provisions in this Code shall supersede any State or Federal 

law which imposes more stringent requirements on employers as to 

age of employees, wages, hours of work, or general working conditions. 

ARTICLE VI-CHILD LABOR 

On and after the effec~ive date no employer shall employ any person under the age of sixteen years or any person under eip:hteen 

years of age in any hazardous occupation. 
4 

ARTI LE VII-Ao Mr r TRA TION 

1. T furth r eff ctuat the :policies of the Act, a d Authority 

i her b · t up t c op rate 1th the Admini trator in th administration f thi od . (a) The od uth rity shall con i t of six m mbers of the 

A ociati n (no t o of horn hall r pr sent the same manufacturer), app inted by and subje t to th dir tion of the Ex cutive 

mmitt e of the s ociation; n r pre entati of m mb rs of the 

Indu tr who ar not m mber of the Association (providing they 

d ir uch repres ntation and signify their illingn s to pay their 

pro rata h · re of the co. t of administering this od ) ; and one 

or more appointe of th Administrator, if he so d sires. The ap1 ointee or appointees of the Administrator s all act in an advi ory 

capacity only, and hall haYe no vote. The representatives of the 

nonmember hall be elected by the nonn1 mber in any fair manner 

approYed by the Administrator. 

(b) Any member of the Industry is eligible for membership in the 

A ociation and there shall be no inequitable re trictions on uch 

membership. ny such member may participat in the preparation 

of and any re, ision or additions or upplement to this Code by assuming his pro rata share of the cost and re ponsibilit of creating 

and administering it, either by becoming a memocr of the Association and payin~ the annual dues and assessments of the As o iation, or by paying to the Code Authority his pro rata share of the 

costs. There shall be no initiation fee for members of the Industry 

who participate only in the Code and do not become members of 

the As ociation. 

2. The Code Authority shall have the following duties and powers_., 

the exercise of which shall be reported to the Administrator and 

shall be subject to his right, on review, to disapprove or modify any 

action taken by the Code Authority. 

(a) To collect from members of the Industry all data, reports, 

and statistics when and as required by the President and/ or the 

Administrator and/or their agent or agents; also to collect such 

data, reports, and statistics as may be requir d from time to time 

by the Code Authority. All such information shall be confidential, 

except insofar as disclosure ma be neces ary for the e:ff tivc administration and enforcement of this code. Such data a ma be requested by the A lministrator shall be made a ailable to him. Reports submitted by the Code Authority to the Pr id nt or the 

Administrator shall be in the form pr scrib d or provided by him. 

(b) In addition to information required to be submitted to the 

Code Authority, there shall be furnished to government agenci s 

such statistical information as the Admini trator may d cm nee ssary for the purposes recited in Section 3 (a) of the ational Industrial Recovery Act. 

( c) The Code Authority may require from the members of the 

Industry reports r garding pri s, or prices and dis cunts on clo d 

transactions, or such other p rtinent data on lo ed tran actions as in 

its O{>inion may be ne e ary to ffe · uate Title I of the A ·t and may 

publish the same should such procedure bed emed advisable. 
5 

( d) To represent the Industry in conferring with the President 

or his agents with respect to the Administration of this Code and in 

respect of the Act and any regulations issued thereunder. 

( e) To hear complaints and attempt to adjust the same. 

(f) To coordinate the Administration of this Code with such codes, 

if any, as may be adopted by any subdivision of this Industry or any 

related industry, with a view to providing joint and harmonious 

action on all matters of common interest, all with approval of the 

Administration. 

(g) To study the marketing and trade practice pr01 isions of Articles IX and X hereof, and the operation thereof, and make recom- mendations from time to time to the Administrator which it deems 

desirable for modification or addition thereto, which, upon the 

approval of the Administrator, after such hearing as he may prescribe, shall become a part of this Code and have full force and effect 

as provisions hereof. 

(h) To make rules and regulations necessary for the administration and enforcement of this Code, subject to the right of any affected 

person to appeal to the Administrator. 

(i) Any notice, demand, or request required or permitted to ba 

given to or to be made upon any member of the Industry shall be 

sufficiently given if mailed, postage prepaid, addressed to such member of the Industry at his address on file with the Secretary of the 

Code Authority. 

(j) If the Code Authority determines that in any branch or subdivision of the Industry it has been the generally recognized practice to sell a specified product on the basis of printed net price list8, 

or price lists with discount sheet'3, and fixed terms of payment which 

are distributed to the trade, each manufacturer of such product shall 

within ten (10) days after notice of such determination file with the 

Code Authority a net price list or a price list and di count sheet, as 

the case may be, individually prepared by him showing his current 

prices, or prices and di counts, and terms of payment, and the Code 

Authority shall immediately send copies thereof to all known manufacturers of such specified product, and shall hold such copies and 

any revisions available to the trade. Revised price lists with or 

without discount sheets may be filed from ti1ne to tin1e thereafter 

with the Code Authority by any manufacturer of uch product, to 

become effective upon the date specified therein, but such revised 

price lists and discount sheets shall be filed with the Secretary of 

the Code Authority ten days in advance of the effective date, unless 

the Code Authority shall authorize a shorter period. Copies of 

revised price lists and discount sheet , with notice of the effective 

date specified, shall be immediately sent to all known manufacturers 

of such product, who thereupon may file, if they so desire, revisions 

of their price lists and/or discount sheets, which shall become effective upon the date when the revised price list or di count sheet first 

filed shall go into effect. 

(k) If the Code Authority shall determine that in any branch or 

subdivision of the Industry not now elling it product · on the basis 

of price lists with or without discount sheet with fixed terms of 

payment the distribution or marketing conditions in said branch 

or subdiYision are similar to, or the same as, the distribution or 
6 

A~TI LE III-A o XTL o A ~o o. TI:N"0 

EYer. employer shall u e an accounting y tem which onform 

t th principles of the uniform and tandard chart of ac ount. t 

forth in the R commended Practice for Uniform Cost ccounting 

i . ued by the A ciation, and a co tino- y tern which conform to 

the principles of the standard uniform method of co tin~ to be 

formulated and approYe l by the Executive Committee and made 

supplement to the said 1'1anual of ccounting or method of costing, 

subject to the approval of the Administrator. 

ARTICLE IX-MARKETING 

Guarantees against decline in price, or protection against advance 

in price hall not be extended over a period greater than ninety 

(90) days. 

Prices quoted on a pecified quantity shall not be applicable to a 

I er quantity. If lesser quantities are shipp d under a contract 

calling for a larger quantity, billing prices shall be those quoted 

or consi tent with the actual quantities shipped. 

It hall be permissible for a bidder to offer any substitute which 

he feels is equal, superior or more desirable to meet the specifi ations of the bid· but if ub titute does not conform to the specifications of the bid, it mu t be so specifically stated. 

ARTI LE X-U NF AIR PRA TICES 

The following acts, as described, shall constitute unfair methods 

of competition: 

(a) The paying of 1 wer wages than prescrib d h rein or the 

op ration of hours of labor in exc ss of the maximum herein prescribed. 

(b) The sale or x hange of an product, in whole or in part, 

b 1 w the eller s co t of uch pordu t in whole or in part, a det rmin din ac ordance ith the o tan accounting y tern referr d 

t in rticle VIII, provid d that any 11 r may ell a pro luct below 

hi co t to me t th pri e of an. omp titor ho pri for uch 

pr duct is not b low u h mJ tit r . t. Ob 1 t mat rial, howev r may b sold at its cl pre iated alue by p rmi ion of the Code 

Authority. 
7 

( c) To sell directly or indirectly by any means whatsoever any 

product of the Industry covered by the provisions of paragraphs 

(j) and (k) of Articles VII at a price lower or at discounts greater 

or on more favorable terms of payment than those provided in 

current net price lists or price lists and discount sheets filed with 

the Secretary of the Code Authority. 

( d) Withholding from or inserting in, any invoice, words or 

figures which make or tend to make such invoice a false record, 

wholly or in part, of the transaction represented on the face thereof; 

or the payment or allowance of secret rebates, refunds, credits, unearned discounts, whether in the form of money or otherwise; or 

the extension to certain purchasers of prices, services, or privileges 

not extended to all purchasers under like conditions. 

(e) To defame or disparage a competitor, directly or indirectly, 

by words or acts which untruthfully impugn his business integrity, 

his ability to keep his contracts, his credit standing, or the quality 

of his products; or advertising, marking, branding, labelling products, and making statements regarding products the purport or effect 

of which may be misleading or tend to deceive purchasers as to the 

quantity, quality, grade, or substance of the goods purchased. 

(f) To imitate or simulate the trade mark, trade name, package, 

wrapper, or label of a competitor's product to such a degree as to 

deceive or have a tendency to deceive customers. 

(g) To give, or permit to be given, to agents, employees, or representatives of customers or to agents, employeest or representatives 

of competitors, money, or anything of value, to induce them to 

influence their employers or principals to purchase or contract to 

purchase products of this Industry, or to influence such employers 

or principals to refrain from contracting with competitors. 

(h) To misrepresent to one source of supply1 directly or indirectll, \ 

in conducting negotiations as a purchaser of materials for use 1n 

the Industry, the offer of a competing ~ource of supply. 

ARTICLE XI-SCOPE OF CODE 

(a) This code is intended to be a Basic Code and to cover the 

entire industry. It is understood, however, that groups of the industry may formulate Supplementary Codes of Fair Practice, defining 

that part of the industry and specifying such additional regulations 

as may be considered advisable. These regulations, however, shall 

conform to the principles of the Basic Code. Such codes, when 

approved by the President, shall have the same force as this Code. 

(b) The provisions of this Code shall apply to and affect only that 

part of production included in this industry. 

( c) In accordance with the provisions of Section 10 (b) of the Act 

the President may from time to time cancel or modify any order, 

approval, license, rule, or regulation issued under Title I of the Act. 

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