(Corrected) Registry No. 1303-1-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

FARM EQUIPMENT 

INDUSTRY 

AS APPROVED ON OCTOBER 3, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART' 

1. Executive Order 

2. Letter of Transmittal 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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EXECUTIVE ORDER 

CODE OF FAIR COMPETITION FOR THE FARM EQIDPMENT INDUSTRY 

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

compliance with the provisions o:f Title I o:f the National Industrial 

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

of Fair Competition :for the Farm Equipment Industry, and hearings having been held thereon and the Administrator having rendered his report containing an analysis o:f the said Code of Fair 

Competition, together with his recommendations and findings with 

respect thereto, and the Administrator having :found that the said 

Code o:f Fair Competition complies in all respects with the pertinent 

provisions o:f Title I o:f 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, recommendations, and findings of the Administrator and do order that the said Code of Fair 

Competition be and is hereby approved, except that the second paragraph o:f Article VIII must be eliminated. 

The vV HITE HousE, 

October 3, 1933. 

Approval recommended: 

HUGH s. JOHNSON, 

Administrator. 

(ill) 

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17480°-188-48--33 

FRANKLIN D. RoosETI:LT. 
SEPTEMBER 27, 1933. 

THE PRESIDENT' 

The White H~. 

MY DEAR MR. PRESIDENT: I have the honor to submit and recommend for your approval the Code of Fair Competition for the 

Farm Equipment Industry. 

The following exhibits are included or attached: 

(1) Final Code Submitted. 

(2) Notice of Hearing. 

(3) Statement of Procedure. 

( 4) Transcript of the Records. 

( 5) Statistical Analysis of the Division of Economic Research and 

Planning. 

(6) Report of Deputy Adminjstrator. , An analysis of the provisions of the Code has been made by the 

Administration. I find that the Code complies with the requirements of Clauses 1 and 2 Subsection (a) of Section 3 of the National 

Recovery Act. 

I am, my dear Mr. President, 

Very sincerely yours, 

(IV) 

• 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAffi COMPETITION FOR THE FARM EQUIPMENT 

INDUSTRY 

ARTICLE I-PURPOSE 

SECTION 1. The purpose of this Code is to reduce and relieve unemployment and to prevent unfair practices of competition in the 

Industry destructive of the interests of the public, employees, and 

employers. 

ARTICLE II-DEFINITIONS 

SECTION 1. As used in the Code the term "farm equipment" includes all equipment used in farm operations except automobiles, 

motor trucks, household utilitie,s, barn and barnyard equipment, 

poultry equipment, and farm hardware such as hand rakes, shovels, 

spades, and hoes. 

The term "industry" includes the manufacture and/ or assembly 

and/or sale ( other than at retail) of any such farm equipment and 

repair parts therefor whether manufactured by the maker of such 

equipment or others. 

The term "employer" means but without limitation any individual, partnership, association, or corporation ( including owned or 

controlled subsidiaries or affiliates) conducting any such operation. 

The term " association " means National Association of Farm 

Equipment :Manufacturers an Illinois corporation. 

The term "Executive Committee" or "Committee" means the 

Executive Committee (as from time to time constituted) of the 

Association. 

The Code shall become effective on the third Monday after the 

Code has been approved by the President and the term "effective 

date" shall refer to such third :Monday. 

ARTICLE III-PARTICIPATION 

SECTION 1. Membership in the Association shall be open to all employers in the Industry and no inequitable restrictions shall be imposed on admission to membership. 

ARTICLE IV-ADMINISTRATION 

SECTION 1. The Executive Committee of the Association is hereby 

constituted a coordinating agency for the Industry and shall act for 

it in the administration of. this Code with the following powers: 

(a) To collect from employers in the Industry all data and statistics required by this Code or by the President of the United States, 

or his agents, under the National Industrial Recovery Act. 

(1) 
C) 

(b) To reRresent the Industry in conferring with the President of 

the United States or his agents or any other federal governmental 

authority with respect to the administration of this Code and in respect of the National Industrial Recovery Act and any regulations 

issued thereunder. The Administration may appoint a representative or representatives to meet with said Committee from time to 

time as such representatives may request, and all data and statistics 

collected as aforesaid shall be made available to them. 

(c) To hear and attempt to adjust complaints arising under the 

Code. 

( d) 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. 

( e) To authorize any person or persons to perform any of the 

foregoing duties subject to the supervision of the Committee. 

ARTICLE V-HoURs OF LABOR AND RATES OF PAY 

SECTION 1. No employer shall employ in the Industry any person 

under the age of 16 years. 

SEc. 2. The demand for farm implements is subject to fluctuations 

not prevailing in any other industry. There is but one customer for 

these implements, the farmer, whose ability to buy is conditioned 

upon the price and quality of his crops. The farm demand even in 

times of comparative farm prosperity is greatly varied and often 

obliterated by unforseeable weather conditions and pests, such as 

boll weevil, blask rust, Hessian fly, grasshopper, corn borer, chinch 

bug, and the like. At least 75% of the variations in farm yields is 

due to these causes. Likewise, a large emergency demand for other 

implements is often created by the same conditions. For example, 

the failure of the wheat crop in the southwest may result in unexpected corn planting, for which special implements must be provided, almost over night. To meet the farmers' immediate demands 

a considerable variation in factory hours has always been essential 

and must be permitted. 

(a) On and after the effective date no employer shall work any 

accounting, clerical, service, sales, express, or delivery employees in 

the industry on a schedule of more than 48 hours in any one week or 

more than 40 hours a week on a six months' average. 

For the purpose of adjusting operations to comply with the six 

months' average requirement any employer may adopt for each location such six-month period as is most appropriate for the business 

there conducted. 

(b) On and after the effective date all employees mentioned in 

paragraph (a) of this Sectibn shall be paid at a rate of not less 

than $15.00 per week in any city of over 500,000 population, or in 

the immediate trade area of such city; and at a rate of not less than 

$14.50 per week in ~ny city of between 250,000 and 500,000 population, or in the immediate trade area of such city; and at a rate 

of not less than $14.00 per week in any city of between 2,500 and 

250,000 population, or in the immediate trade area of such city; 

and in towns of less than 2,500 population all wages of such em-
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ployees shall be increased by not less than 20 percent, provided that 

this shall not require wages in excess of $12.00 per week. 

( c) No employees of the classes mentioned in paragraph (a) of 

this Section shall have their compensation reduced on account of 

any reduction in the weekly hours of employment made to conform 

with the requirements of paragraph (a) of this Section. 

( d) The provisions of this Section do not apply to employees 

receiving more than $35.00 per week and paragraph (a) hereof 

does not apply to outside salesmen, collectors, field service men and 

service-parts foremen. 

SEc. 3. Factory workers as used in this Section shall not include 

any employee of the classes mentioned in Section 2 (a) of this 

.Article. 

(a) On and after the effective date of this Code employers shall 

not operate on a schedule of hours of labor for their :factory employees in the Industry in excess of 40 hours in any one week. 

As to employees engaged in the preparation, care, and maintenance 

of plant, machinery, and production facilities, there shall be a tolerance of 10%, and the schedule of hours of labor shall not apply to 

such employees in the case of emergency work. Any emergency time 

in any plant shall be reported monthly to the A sociation. 10% 

tolerance above 40 hours shall also be permitted for other factory 

workers where necessary to take care of seasonal peaks or special 

demands. In all cases, however, the average over a six months' 

period shall be not more than 40 hours per week. 

The limitations as to hours of labor shall not apply to employees 

in a supervisory capacity receiving more than $35.00 a week or to 

field service men. 

(b) On and after the effective date of this Code, the minimum 

wage that shall be paid by employers to any of their factory workers 

in the Industry shall be at the following rates : 

Cents per hour Zone A ___________________________________________________ 40 

Zone B ___________________________________________________ 35 

Zone Q ___________________________________________________ 30 

Zone A is defined as cities of more than one million population, 

together with all industrial cities, towns, and villages in the same 

immediate manufacturing area. Zone C, the states of Virginia, 

North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Tennessee, Kentucky, Arkansas, Louisiana, Texas, and points 

east of the Mississippi River south Louisville, Kentucky; also all 

communities elsewhere in the United States of less than fifteen 

thousand population in which a majority of the adult male population is not engaged in manufacturing. Zone B, all territory in the 

United States except Zones A and C. 

Where females perform the same work and duties as men the minimum rate of wages for :females shall be the same as for men. Where 

:females and youths perform different and light types of work the 

minimum wage rate may be five cents an hour lower than those 

specified above. 

( c) The hourly rates of pay and the base rates for piecework 

for all factory workers paid at rates higher than the above minimum, 

and lower than $30.00 per week, shall not be le,ss than 85 % of the rates 
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paid by the same employer or his predecessor in business for the 

same class of work at the same place on July 15, 1929; provided, 

that no employer shall be required hereby to pay a higher rate than 

other employers for the same class of work in the same immediate 

manufacturing area. 

All employers who have not heretofore adjusted wages to conform 

with these provisions shall do so within 15 days after the effective 

date of this Code. 

SEc. 4. Exceptions to the above minimum rates are learners for a 

period up to ten weeks, messengers and office boys who shall receive 

not less than 80% of the minimum; and employees disabled by old 

age or other causes; but the total number of such excepted employees 

shall not exceed 5% of the total number of employees of any employer. The provisions, as to rates of wages, shall not apply to apprentices or learners working part time in conjunction with any 

public educational system. 

SEc. 5. vVithin each state employers shall comply with all such 

state laws imposing more stringent requirements regulating the age 

of employees, wages, hours of work or health, fire or general working 

conditions than under this Code. 

SEc. 6. The foregoing provisions in regard to wages of factory 

employees establish guaranteed minimum rates of pay regardless of 

whether the employee is compensated on the basis of a time rate or 

piecework perforinance, or otherwise. 

SEc. 7. No employee shall be classified in any one of the excepted 

classes hereinabove defined unless he performs functions identical 

with those performed by employees thus classified on June 16, 1933. 

SEc. 8. The maximum hours hereinabove provided mark the total 

number of hours during which any employee may be employed, 

whether by one or more employers; providedi however, that if any 

employee should work for more than one emp oyer for an aggregate 

period in excess of such maximum, without the knowledge or connivance of any one of such employers, such employer shall not be 

deemed to have violated this section. 

SEc. 9. Population shall be governed by the United States census 

of 1930. 

ARTICLE VI-STATISTICS 

SECTION 1. In addition to information required to be submitted to 

the Code authorities there shall be :furnished to government agencies 

such statistical information as the Administrator may deem necessary 

:for the purpose recited in Section 3 (a) of the National Industrial 

Recovery Act. · 

SEc. 2. Not later than the 28th day of each month each employer 

shall report to the secretary of the Association, in terms of percentage, the pro:portion which its aggregate sales of products in 

the Industry during the previous month bear to the corresponding 

sales of the same month o:f the preyious year, and also the proportion which corresponding sales from the preceding January first to 

and including the previous month bear to those for the same period 

of the previous year. As part of the same report, the proportions 

which collections :for the previous month and for the current year 

from January first to and including the previous month bear to col-
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lections for the corresponding periods of the previous year shall also 

be reported in terms of percentage. Such statistics shall be available 

to all members of the Association, but the names of the employers 

reporting shall not be divulged. 

ARTICLE VII- TRADE PRACTICES 

SECTION 1. Within ten days after the effective date of this Code 

each employer in the Indu try shall file with the Association a complete list of its prices ( to jobbers and dealers), including delivery 

points, finance plans terms and discount , and thereafter shall file 

all changes therein as and when made. It shall be an unfair method 

of competition for any employer to give any concession directly or 

indirectly, by any mean from its lists of prices, delivery points, 

finance plans, terms and discounts so filed as long as the same remain in force, and no change shall become effective in advance of 

filing the same with the Association which shall make such information available to employers in the Industry making competitive 

lines. Stationary grain separators shall not be sold on longer terms 

than 28 months from date of delivery to the u er thereof; all other 

farm equipment shall not be sold on longer terms than two years 

from date of delivery to the user thereof and no part of a deferred 

payment shall be extended except for actual inability of the purchaser to make payment; and no under tan cling for renewal or extension of any payment shall be made prior to the sale of the merchandise to the user. 

SEC. 2. The manufacture and sale of farm equipment produced 

by prison labor displaces a corresponding amount of free labor. 

Further the products of such prison labor are cu tomarily sold at 

prices below the cost of si1nilar articles produced by private industry 

employing free labor and ubject to taxes and other ordinary business expenses. The increased wages prescribed by this Code cannot 

be maintained against the competition of such prison-made products. To protect free labor against such competition, it is hereby 

declared to be an unfair act of competition and a violation of this 

Code to sell and ship pri on-made products across state lines at 

lower prices than similar goods made by free labor can be sold 

under the provisions of this Code. 

SEc. 3. So long as the maker of any trade-marked machine or 

implement ( or his successor in bu ines ) continues to make and 

supply repair parts therefor, it shall be an unfair method of competition for any other per on to make and supply repair parts for 

such machines or impl ment.s unless (a) the name of the maker of 

such repair parts is plainly marked on each part ( or if this is impracticable on the package or tag) and unless (b) said parts are 

otherwise marked, packaged, and sold without imitative labels, and 

in such a manner as to clearly indicate to the ultimate u er that 

they are not made by the maker of the original machine or 

implement. 

SEc. 4. It shall be an unfair method of competition to sell below 

current delivered cost. In determining overheads (production, selling, collection and distribution), the percentages applicable to the 

year 1926 may be used if lower than current figures. 
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Any employer in the Industry who wishes to sell a product at 

less than cost ( either generally or in certain territory) (a) to introduce a product new to its lines, or (b) so that its line shall be 

sufficiently varied to adequately compete with other employers in 

the Industry, or ( c) so that the line of its dealers shall be sufficiently 

complete to adequately compete with other dealers, may do so provided (1) that it may not sell any such product for a less price or 

en more liberal terms than the price and terms in the same territory 

of its competitor who sells for the lowest price which is not less 

than cost; (2) that such employer in the Industry first notifies 

the Association of the product and territory involved. 

This Section does not apply to obsolete merchandise or to merchandise which is substantially shopworn. 

SEC. 5. The preceding provisions of this Article do not apply to 

second-hand merchandise except that full payment shall be required 

within two years from date of delivery. 

SEc. 6. As trade practices in foreign countries are governed by 

foreign laws and as foreign manufacturers are not subject to this 

Code, it is understood the provisions of this Article do not apply to 

export trade. 

SEc. 7. No person shall take part in any method of competition 

defined as unfair in this Code. 

ARTICLE VIII 

As required by Section 7 (a) of the Act, the following provisions 

are conditions of this Code: "(1) 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 employers of labor or their agents in 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; (2) that no employee and no one seeking employment 

shall be required as a condition to employment to join any company 

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

organization of his own choosing; 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." 

lVithout in any way attempting to q1JX1,lify or modify, by interpretation, the foregoing requirements of the National Industrial 

Recovery Act, employers in thris Industry may exercise their right 

to select, retain, or advance employees on the basis of individual 

merit, without regard to their membership or nonmembership in 

any organization. (See Note on p. 7.) 

ARTICLE IX 

This Code is hereby made expressly subject to the right of the 

President, pursuant to Section 10 (b) of the National Industrial 

Recovery Act, from time to time to cancel or modify any order 

approval, license, rule, or regulation issued under Title I of said 

Act, and particularly, but without limitation, to cancel or modify 

his approval of this Code or any conditions imposed by him upon 

such approval. 
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ARTICLE X 

No person consenting to this Code shall be held to have consented 

to any modification thereof or to any particular interpretation of 

the National Industrial Recovery Act if invalid. 

ARTICLE XI 

This Code may be amended by appropriate action of the Industry 

and approval of the President. This Code and any amendments 

thereof shall remain in effect until November 1, 1934, unless sooner 

terminated by action or approval of the President. It is contem- plated from time to time supplementary provisions to this Code or 

additional codes will be submitted for the approval of the President to prevent unfair competition in price and other unfair and 

destructive competitive practices, and to effectuate the other purposes 

and policies of Title I of the National Industrial Recovery Act. 

Any proposals for amendments to this Code or supplemental 

agreements with respect to wages, hours, trade practices, or any 

other matters, shall be first submitted to the Committee, which 

shall consider the same and confer with employers in the Industry 

affected thereby to the extent the Committee deems advisable. The 

Committee, as representing the entire Industry, shall have no power 

to approve or recommend any amendments or supplemental agreements, but may arrange for a hearing before the President or his 

agents or other Federal governmental authorities on any proposal 

which a substantial proportion of the Industry, or the division 

thereof affected by the proposal, desires to present, and shall notify 

all members of the Association of the time and place of the hearing. 

NoTE.-This paragraph has been eliminated as required by the 

Executive Order, for the reasons stated by the President in a letter 

to the Administrator of October 19, 1933, reading as follows : 

General HuaH S. JOHNSON, 

Adniinutrator for National R eco1J ery, 

OCTOBER 19, 1933. 

Washington, D.O. 

DEAR GENERAL JOHNSON: Following our recent discussion of various misunderstandings and misinterpretations of Section 7 (a) of 

the.~ ational Industrial Recovery Act, I wish to advise .you of my 

position. 

Because it is evident that the insertion of any interpretation of 

Section 7 (a) in a Code of Fair Competition leads only to further 

controversy and confusion, no such interpretation should be incorporated in any Code. While there is nothing in the provisions of 

Section 7 (a) to interfere with the bona fide exercise of the riaht 

of an ~mployer to select, retain, or advance employees on the b~sis 

of individual merit, Section 7 (a) does clearly prohibit the pretended ~xercise of this right by an employer simply as a device for 

compelling employees to refrain from exercising the riahts of selforganization, designation of representatives, and collective baro·aining, which are guaranteed to all employees in said Section 7°(a). 

Very truly yours, 

FRANKLIN D. ROOSEVELT. 

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UNIVERSITY OF FLORIDA 

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