Approved Code No. 347-Supplement No.1 Registry No. 1414-o9 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

STEEL TIRE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON APRIL 23, 1934 

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u.s. DE~ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 347-Supplement No. 1 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

STEEL TIRE MANUFACTURING INDUSTRY 

As Approved on April 23, 1934 

ORDER 

SUPPLEMENTARY CoDE OF FAIR Co~IPETITION FOR THE STEEL TmE MANUF <\.CTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application haYing 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 Supplemental Code of Fair Competition for the Steel Tire Manufacturing 

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

Supplemental Code, containing findings with respect thereto, having 

been made and directed to the President: 

NO\iV, 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 saia annexed 

report and do find that said Supplemental 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 

Supplemental Code of Fair Competition be and it is hereby approved 

on condition that the Steel Tire Manufacturing Association shall 

amend its Articles of Association and B_y-Laws to the satisfaction 

of the Administrator on or before April 27, 1934, as provided in the 

Executive Order of approval of the Code of Fair Competition for the 

Machinery and Allied Products Industry as approved on March 

17, 1934. 

HUGH s. JOHNSON' 

Arbninistrator fm· Ind-ustrial Reco ve ry. 

Approval recommended: 

A. R. GLANCY, 

Division Administrator. 

VVASHINGTON, D.C., 

April 23, 1934. 

~4403"----482 147----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lVhite House. 

SrR: This is a report on the Supplmnental Code of Fair Competition for the Steel Tire Subdivision of the Machinery and Allied 

Products Industry, Public Hearing having been conducted thereon 

in Washington, D.C., December 21, 1933, in accordance with the 

provi ·ions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The American Steel Tire ~1anufacturers Association being truly 

repre entative of this Subdivision of the ~Iachinery 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 March 17, 1934. The Steel Tire - Industry is a capital goods industry and is engaged in the business 

of manufacturing and selling locomotive and railroad car wheel 

tires, other annular weldless rolled steel section , and steel tired 

wheels for railroad, railway and/or industrial use. 

ECOX Ol\IIC EFFECT 

This Subdivi ion suffered noticeably from the effects of the 

depression as follows: 

The value of production dropped from $11,727,000 in 1929 to 

$5,080,000 in 1933, or a decrea e of 56.7 per cent. 

Average employment dropped from 1406 persons in 1929 to 1027 

person in 1933 or a decrease of 26.9 per cent. 

Payrolls in 1929 a1nounted to $2,372,224 and $991,518 in 1933, a 

decrease of 58.1 per cent. 

The average weeldy earnings fo~ factory workers in 1929 were 

$33.87 and $16.92 in June 1933, a decrea e of 50.2 per cent while office 

employees weekly earnings declined from $34.43 in 1929 to $28.43 in 

1933, a decrease of 17.4 per cent. 

Average hours per man per week for :factory workers in J nne, 1933, 

declined 37.5 per cent from 1929, and average hourly earnings declined 20.4 per cent during the same period. However, an improved 

demand, partially due to railroad purchase orders made possible by 

Public 'Vork Admini tration loan , is indicated for the current 

:year. 

The Supplemental Code will increase factory employment about 

8.9 per cent. The effect of the geographical differential in the proposed minimum wage rates will be to establish an average minimum for the 

Subdivision of 37.6 cents per hour. 

(2) 
3 

FINDINGS 

The Assistant Deputy Administrator in his final report to me on 

said Supplemental Code having found as herein set forth and on 

the basis of all the proceedings in this matter: 

I find that: 

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

policies and purposes of Title I of the National Industrial RecoYery 

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

and foreign commerce which tend to diminish the amount thereof 

and wil'l proYide 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 ten1porarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, 

by reducing and relieving unemployment, by improving standards 

of labor, and by otherwi e rehabilitating indu try. 

(b) Said Subdivision 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 re pects 

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 group truly representatiYe of the 

aforesaid Subdivision of the Industry; and that said group 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 Co~le; on condition that the American Steel Tire l\1anufacturers 

Association shall amend its Articles of Association to the satisfaction 

of the Administrator on or before .April 27 1934, as provided in the 

Executive Order of approval of the Code of Fair Competition for 

the Machinery and Allied Products Industry as approved March 17, 

1934. 

Respectfully, 

APRIL 23, 1934. 

HUGH s. JOHNSON' 

Ad11ni·m:strator 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE STEEL TIRE I\UNUF ACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplemental National Industrial Recovery Code for the Steel Tire Manufacturing Subdivision of the Machinery and Allied Product Industry, and taken toD"ether with the National Industrial Recovery Code 

of Machinery ancl Allied Products Industry, to which it is a Supplement, shall be the tandard of fair competition for this Subdivision, 

and shall be binding on each employer therein. 

ARTICLE II-DEFINITIONS 

"Applicant " means the American Steel Tire I\fanufacturers Association, the addres · of which is 30 Church Street, New York City, 

New York, a trade organization, all members of which are engaged 

in the manufacture for sale of the products of the Steel Tire I\1anufacturing Subdivision of the Machinery and Allied Products Industry, which organization is truly representative of this Subdivision. 

"Industry" means the Machinery and Allied Products Industry, 

a.s defined in its National Industrial Recovery Code as approved by 

the President, and as such definition may from time to time be 

amended. 

"Subdivision" means the Steel Tire Manufacturing Subnivision 

of the Machinery and Allied Products Industry as defined and set 

forth in Article II of the National Industrial Recovery Code of the 

Machinery and Allied Products Industry as follows: 

" Steel Tire Manufacturing Subdivision means and includes only 

the business of manufacturing and selling locomotive and railroad 

car wheel tires, other annular weldless rolled steel sections, -and 

steel tired wheels for railroad, railway and/or indu trial use. ' 

" Code" means the National Industrial Recovery Code of the 

Machinery and Allied Products Industry, as approved by the President, and as from time to time amended. 

"Person" means a natural person, a partnership, a corporation, 

an association, a trust, a trustee, a trustee in bankruptcy, a receiver 

or other entity. 

"Employer" means any person engaged in this Subdivision of the 

Industry either on his own behalf or a an employer of labor. 

"Employee" means any one who is employed in the Subdivision 

by any such employer. 

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

(4} 
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"The President" means the President of the United States. 

"Th<3 Administrator" m<3ans the Administrator for Industrial 

Recovery. 

"Basic Code Authority " means the Code Authority for the 

Machinery and Allied Products Industry as constituted in the 

Code. 

"Code Authority" means the Code Authority constituted for this 

Subdivision as provided by the Code and by this Supplemental 

Code. 

ARTICLE III-ADoPTION oF EMPLOY.MENT PRovisiONS oF CoDE 

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

Article IV," "Tages" and Article V, "General Labor Provisions", 

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

effect as if they were writt~m into this Supplemental Code. 

ARTICLE IV-ADoPTiox OF OTHER PRonSIONs o:v CoDE 

The following Articles o£ 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, "Modification and 

Termination "; Article IX, " vVithdra wal "; Article X, " Monopolies" and Article XI, " EffectiYe Date'', are hereby made a part 

hereof with the same effect as if they were written into this ' 

Supplemental Cod<3. 

ARTICLE v -ADJUINISTRATIO~ 

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

to administer, supervis<3 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 Board of Directors of American Steel Tire Manufacturers Association, consisting of four members. 

(2) One additional member to be elected in any fair mann<3r with 

the approval of the Administrator, by employ<3rs in this Subdivision 

entitled. to vote thereon, as hereinafter provided, who are not members of the Applicant, if so desired by such non-members. 

(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 such personnel as it may deem necessary. 

(c) Any employer in this Subdivision shall be eligible for membership in American Steel Tire Manufacturers Association. 

(d) 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 

1 Sl'e paragraph 2 of ordet· approving this Code. 
6 

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 

assess~d his or its proper pro rata share of the cost of preparing, 

submitting and administering this Supplemental Code, as determined 

by Code Authority. The cost of preparing, submitting and administering this Supplemental Cocle shall be borne by employers pro 

rata in the proportions that the amount in dollars of the yearly 

average net sales of Products of the Subdivision made by the respective employers during the five preceding calendar years . bears to 

the aggregate of the amount in dollars of the yearly average net 

sales of Products of the Subdivision made by all employers during 

such five preceding calendar years. 

(e) Action by employers at any meeting of employers, except at 

a meeting called under Section (a) (2) of this Article, shall be 

by vote of the employers entitled to vote thereat as provided in 

Section (d) of this Article cast concurrently in each of the two 

following methods: 

1. By one vote of each employer. 

2. By vote of employers weighted on the basis of one vote for 

each $50,000 of the yearly average net sales of products of the 

Subdivision of each employer during the preceding five calendar 

years, as reported to Code Authority, to be computed at the beginning of each calendar year and to apply throughout the then current calendar year. Each employer shall be entitled to at least one 

such weighted vote. 

All questions as to the number of votes which each employer 

entitled to vote shall be entitled to cast at any meeting of employers 

shall be determined by Code Authority. At meetings of employers 

each employer entitled to vote may vote either in person or by 

proxy in writing duly executed by such employer and filed with the 

Secretary of the meeting. E_xcept as otherwise provided in this 

Supplementary Code any action taken at any meeting of employers 

shall be by the concurring vote of employers entitled to cast at least 

a majority of all the votes, computed in each of the two methods 

hereinabove provided that might be cast at the meeting if all the 

employers entitled to vote were present thereat. 

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

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

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

ARTICLE VI-UNFAIR PRACTICES 

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

djrectly 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 of such agent or the represented party, 

without the knowledge of such employer, principal or party. Commercial bribery provisions 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. 
ARTICLE VII-MoDIFICATioNs 

(a) As provided by Se.ction 10 (b) of the Act, the Pre. ident may 

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

or regulation issued under Title I of the Act. 

(b) The provisions of this Supplemental Code, other than those 

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

of the Administrator, be fr01n 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 e.mployers entitled to cast at least two-thirds of 

all the votes that might be cast at a meeting of em players if all the 

employers then entitled to vote, computed in each of the two methods 

in Section (e) of Article V hereof provided were present thereat 

shall be in full force and effect upon approval by the Administrator. 

ARTicLE VIII-vv ITHDRA w AL 

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

notice to Basic Code Authority and to the Administrator, this Subdivision may, at a meeting of employers, by the concurring affirmative vote of employers entitled to cast at least two-thirds of all the 

votes computed in each of the two methods in Section (e) of Article 

V hereof provided that might be cast at such meeting if all the 

employers then entitled to vote were present thereat, withdraw fr01n 

the jurisdiction of Basic Code Ai1thority. Thereafter this Supplemental Code, together with the provisions of the Code, except such 

portions of Articles 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 IX-1\'IoNOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is 

not designed to prom.ote 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 X-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on all 

employers engaged in the Subdivision on the eleventh (11th) day 

after its approval by the Administrator. 

Approyed Code No. 347-Supplement No. 1. 

Registry No. 1414-09. 

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