Approved Code No. 347-Supplernent No. 39 Registry No. 1414-0G 

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NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY APPLIANCE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON AUGUST 1, 1934. 

WE DO CUR PART 

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. e~QeltTO"'Y I 

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 of li'oreign 

and Domestic Commerce. 

DISTRICT OFFICES OF 'fHE DEPARTMENT OF COMMERCE 

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Approved Code No. 347- Supplement No. 39 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY APPLIANCE MANUFACTURING 

INDUSTRY 

As Approved on August 1, 1934 

ORDER 

APPROVING SUPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE 

RAILWAY APPLIANCE MA1\'UFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS 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 Supplemental Code of Fair Competition for the Railway Appliance Nlanufacturing 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 Presi c~en t: 

NOW, 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 said 

annexed report and do find that said Supplemental Code complies 

in all r espects 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 subject to the following conditions: 

( 1) That the provisions of Article VIII, Section (a) insofar as 

they prescribe a waiting period between the filing with the Code 

Authority (or such agency as may be designated in the Supplemental 

Code) and the effective date of price lists, as originally fiJed and/or 

revised price lists or revised terms and conditions of sale, be and 

they hereby are staJed pending my further order; 

(2) That the provisions of Article VIII, Section (e) be and they 

hereby are stayed pendin~ the submission of satisfar:tory evidence 

concerning distribution ot the products of the Subdivision to the 

Administrator; 

77613°----1044- 10----34 (1) 
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(3) 'That the provisions of Article IX, Section 7 be and they 

hert;by are stayed for a period of fifteen (15) days; within which 

time cause may be shown, if any there be, why the above provisions 

should not become effective; and 

( 4) That the provisions of Article IX, Sections 6 and 8 be and 

they hereby are stayed pending my furt her order. 

HUGH s. JOHNSON' 

Adn-dni.strat01" for Industrial Recovery. 

Approval recommended : 

BARToN vv. ~iURR Y, 

Division Adn -inist1·ator. 

w .A.SHINGTON, D.C., 

August 1, 1934 . 

• 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

S:m: This is a report on the Supplemental Code of Fair Competition for the Railway Appliance Manufacturing 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 provisions of Title I of the National Industrial 

Recovery Act. 

GENERAL STATEMENT 

The Railway Appliance Manufacturers Association being representative of the manufacture of the products defined in Article II 

of the Supplemental Code, has elected to formulate and submit a 

Supplemental Code of Fair Competition as provided in Article I of 

the Code of Fair Competition for the ~1achinery and Allied Products Industry, approved by you on the seventeenth day of March, 

1934. 

The Railway Appliance Manufacturing Subdivision means the 

manufacture for sale of railway hand cars, push cars, velocipede 

cars, motor cars and special appliances thereof, locomotive water 

cranes and parts thereof, and includes all those engaged in such 

manufacture for sale. 

ECOXOMIC EFFECT 

This Subdivision has been affected by the depression and the ill 

effect may be attributed tQ the fact that this Subdivision depends to 

a large degree on the railroads as a market for its products. 

ProductiOn dropped from $4,7 40,000 in 1929 to $1,210,000 in 1933, 

a decrease of 74.5 per cent. 

Employment totaled 875 persons in 1929 as against 450 in 1933, 

a loss of 48.5 per cent. 

Total payrolls amounted to $1,361,000 in 1929 and but $350,000 

in 1933 a decline of 7 4.2 per cent. 

By June 1933, average hours per man per week for factory workers had decreased 34.4 per cent; average earnings per man per week 

had decreased 50.4 per cent. 

The President's Reemployment Agreement effected increases in 

employment and payrolls. Substantial business improvement is expected in 1934 because of governmental loans to the railroads for 

purchase of maintenance of way equipment. 

FINDINGS 

The Deputy Administrator in his final report to me on said SuJ?-

plemental Code having found as herein set forth and on the basis 

of all the proceedings in this matter: 

(3) 
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I find that: 

(a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of theN ational Industrial Recovery Act-1 

including removal of obstructions to the free flow of interstate and 

foreign commerce which tend to diminish the amount thereof and 

will provide for the general welfare by promoting the organization 

of industry for the purpose of cboJ?erative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate goverrunental 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 lievin~ unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(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 respects 

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 association is an industrial association representative of 

the aforesaid Subdivision; and that said association imposes no 

inequitable restrictions on admission to membership therein. 

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

monopolies or monopolistic practices. 

(e) The Supplemental Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 

against them. 

(£) 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. 

Fm.· these reasons, therefore, I have approved this Supplemental 

Code; on condition that certain provisions are stayed, as stated in 

the Order. 

Respectfully, 

WASHINGTON, D.C., 

A wqust 1, 1934~ 

HuoH S. JoHNsoN, 

Administrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE RAILWAY APPLIANCE MANUFACTURING 

INDUSTRY 

A DIVISION OF THE M ACHINERY 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 Code of Fair Competition for the Railway Appliance Manufacturing Subdivision of the Machinery and Allied Products Industry, and taken together with the Code of Fair Competition of 

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

and shall be binding on each employer therein. 

ARTICLE II-DEFINITIONS 

"Applicant" means the Railway Appliance fanufacturers Association, a trade organization, all members of which are engaged in 

the manufacture for sale of the products of the Railway Appliance 

Manufacturing Subdivision of the Machinery and Allied Products 

Industry. 

"Industry" means the Machinery and Allied Pfoducts Industry, 

as defined in its Code of Fair Competition as approved by the President, March 17, 1934, and as such definition may from time to time 

be amended. 

"Subdivision" means the Railway Appliance Manuf acturing Subdivision of the Machinery and Allied Prod\1 cts Industry as defined 

and set forth in Article II of the Code of Fair Competition of the 

Machinery and Allied Products I ndustry as follows : 

"Railway Appliance Manufacturing Subdivision means the manufacture for sale of railway hand cars, push cars, velocipede cars, 

motor cars and special appliances thereof, locomotive water cranes 

and parts thereof, and includes all those engaged in such manufacture 

for sale." 

"Code" means the Code of Fair Competition of the Machinery 

and Allied Products Industry, as approved by the President, March 

17, 1934, and as from time to time amended. 

"Person" means a natural person, a partnership, a corpor ation , 

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 as an employer of labor. 

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

by any such Employer. 

(:5) 
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"The Act" means Title I of the National Industrial Recovery Act. 

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

"The Administrator" means the Administrator for Industrial 

Recovery. 

"Basic Code Authority" means the Code Authority for the 

Machinery and Allied Products Industry as constituted by the Code. 

"Code Authority" means the Code Authority constituted for this 

Subdivision, as provided by the Code and by this Supplemental 

Code. 

"Publish" means to make available to any interested party. 

ARTICLE III-EMPLOYMENT PROVISIONS 

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

Hours " ; Article IV, " Wages "; and Article V, " General Labor 

Provisions", are hereby made a part of this Supplemental Code, 

with the same effect as if they were written into this Supplemental 

Code. 

ARTICLE IV-AooPTioN OF OTHER PROVISIONS oF ConE 

The following Articles of the Code, viz : Article II, " Definitions " 

and Article VI, " Administration ", to the extent that they shall be 

applicable to the administration of this Supplemental Code as. such 

or as it may hereafter be administered as an autonomous Code, and 

Article VIII, " Modifications and Termination "; are hereby made 

a part of this Supplemental Code, with the same effect as if they 

were written into this Supplemental Code. 

ARTICLE V-ADl\IINISTRATION 

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

to administer;. supervise and facilitate the enforcement of the Code 

and of this bupplemental Code in the manner and to the extent 

provided in the Code and in this Supplemental Code. 

(b) During a period not to exceed sixty (60) days following 

the effective date and pending the election of the permanent Code 

Authority, the executive Comn1ittee of the Applicant shall constitute 

a temporary Code Authority. 

(c) This Subdivision, having held an election for permanent Code 

Authority under the provisions of the Code of Fair Competition 

for the Machinery and Allied Products Industry, the Code Authority so elected shall constitute the first permanent Code Authority 

for this Subdivision, if this method of election meets with the approval of the Administration. If this method of election does not 

meet with the approval of the Administration, then the provisions 

hereinbelow provided shall apply for the election of the first permanent Code Authority. For elections after the first, the provisions 

of this Code for election of a permanent Code Authority shall apply. 

The Applicant shall, by written notice mailed to all employers 

known to the Applicant, call a meeting of employers, to be held 

within sixty (60) days after the effective date for the purpose of 

electing a permanent Code Authority which shall consist of three 

members, and one additional member to be elected in any fair man-
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ner with the approval of the Administrator by employers in this 

Subdivision, entitled to vote thereon, as provided below, who are not 

members of the Applicant, if so desired by such non-members. In 

-r-oting for Code Authority each employer shall be entitled to cast 

one vote, in person or by duly authorized proxy. The Administrator may, in his discretion, appoint one additional member (without vote and without expense to the Subdivision). The permanent 

Code Authority so elected and appointed shall supersede the temporary Code Authority and members of which will hold office for 

such periods as shall be specified in the Code Authority By-Laws. 

Any vacancy on the Code Authority due to death, resignation, or 

because a member thereof has ceased to be connected with this Subdivision shall be filled at a meeting of employers called by the Code 

Authority on at least ten days' notice by registered mail sent to all 

known employers in this Subdivision, and in a manner similar to 

the manner in which the retired member was originally elected. 

(d) Any employer shall be entitled to vote at the el-ection of the 

permanent Code Authority and at other meetings of employers and 

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

participate in any endeavors of Code Authority in the preparation 

of any amendments or revisions of, or additions or supplements to 

this Supplemental Code by paying or agreeing to pay his proper 

pro-rata share of the reasonable cost of administering this Supplemental Code as determined by Code Authority. 

(e) If formal complaint is made to Code Authority thaf provisions of this Supplemental Code have been violated by any employer, Code Authority may cause such investigation or audit to be 

made, to the extent permitted by the Act, as may be deemed 

necessary. 

(f) The Code Authority may appoint a Trade Practice Committee which shall meet with the Trade Practice Committees appointed under such other Codes as may be related to the Subdivision 

for the purpose of formulating fair trade practices to govern the 

relationships between production and distribution employers under 

this Supplemental Code and under such others to the extent that such 

fair trade practices may be proposed to the Administrator as 

amendments to thi Supplemental Code and sue~ other Codes. 

ARTICLE VI-AccouNTING AND CosTING 

The Code Authority shall cause to be formulated an accounting 

system and methods of cost finding andjor estimating, capable of 

use by all employers of the Subdivision. After such system and 

methods have been formulated, full details concerning them shall 

be made available to all employers. Thereafter all employers shall 

determine and/or estimate costs in accordance with the principles 

of such methods. 

ARTICLE VII-SELLING BELOW REASON ABLE CosT 

When the Code Authority determines that an emergency exists in 

this Subdivision, and that the cause thereof is destructive pricecutting such as to render ineffective or seriously endanger the mainte-
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nance of the prov1s10ns of this Supplemental Code, the Code Au- thority may cause to be determined the lowest reasonable cost of the 

products of this Subdivision, such determination to be subject to 

such notice and hearing as the Administrator may require. The 

Administrator may approve, disapprove, or modify the determination. Thereafter, during the period of emergency, it shall be an 

unfair trade practice for a.ny employer of the Subdivision to sell or 

offer to sell any products of the Subdivision for which the lowest 

reasonable cost has been determined at such prices or upon such terms 

or conditions of sale that the buyer will pay less therefor than the 

lowest reasonable cost of such products. vVhen it appears that conditions have changed, the Code Authority, upon its own initiative or upon the r equest of any interested 

pa.rty, shall cause the determir1ation to be reviewed. · 

ARTICLE VIII-PmcE LrsTs 

(a) If and when the Code Authority of this Subdivision determines that in any branch or group of the Subdivision it has been 

the generally r ecognized practice to sell a specified product on the 

basis of net price lists, or price lists with discount sheets, and terms 

of sale and payment, each employer shall, withi.D ten (10) days after 

notice of such determination, file with the Code Authority a net 

price list, or a price list and discount sheet, as the case may be, 

individually prepared by hi1n, showing his current prices, or prices 

and discounts, and terms of sale and payment, for such specified 

product, and the Code Authority shall immediately publish them 

and send copies thereof to all known em:ployers who are cooperating 

in this Supplemental Code as described 1n Section (d) of Article V 

hereof. 

Revised price lists andj or discount sheets and/ or terms of sale 

and payment for suchlroduct may be filed from time to time thereafter with the Code uthority by any employer but such revised 

price lists and/or discount sheets and/ or terms of sale and payment 

shall be filed with the Code Authority ten (10) days in advance of 

the effective date. Copies of such revised price lists and/or discount 

sheets and/or terms of sale and payment, for such product, with 

notice of the effective date specified, shall be immediately published 

and sent to all known employers who are cooperating in this Supplemental Code as described in Section (d) of Article V hereof, 

any of whom may file, if he so desires, to become effective upon the 

date when the revised price list and/or discount sheet andjor terms 

of sale and payment first filed shall go into effect, revisions of his 

price _lis!s and( or discol?-nt sheets. and terms of sale and payment 

establishing pnces or pnces and d1s~ounts. 1 

(b) If and when the Code Authority shall determine that in any 

branch or group of the Subdivision not now selling its product on 

the basis of price lists, with or without discount sheets, with terms 

of sale and payment, the distribution or n1arketing conditions in 

said branch or group are the same as, or similar to, the distribution 

or marketing conditions in a branch or group of the Subdivision 

where the use of price lists, with or without discount sheets, and 

1 Se~ paragraph 2 (1) of order approving this Code. 
9 

terms of sale and payment, is well recognized, and that a system 

of selling on net price lists or price lists and discount sheets with 

terms of sale and payment for such product should be put into 

effect in such branch or group, then each employer of such branch 

or group shall within ten (10) clays after notice of such determina- tion, file with the Code Authority net price lists or price lists and 

discount sheets, containing terms of sale and payment, showing his 

current prices and discounts and terms of sale and payment, and 

such price lists and/ or discount sheets and/ or terms of sale and 

payment may be thereafter revised in the manner hereinabove provided, and such methods of pricings and revisions thereof shall be 

"published and sent " as described in Article VIII (a) ; provided, however, that the Code Authority shall make no determination to 

place any product of the Subdivision (not now on a price list basis) 

on a price list basis, as provided in this paragraph (b) of _Article 

VIII, unless the employers who are at that time engaged in manufacturing such product and are at that time cooperating in this 

Code, have given their affirmative consent to such determination. 

The eligibility requirements, ·method, and effect of such voting shall 

be the same as provided in Article V. 

(c) Each employer shall prepare and furnish the Code Authority 

for distribution with such number of copies of his price lists and/ or 

discount sheets and terms of sale and payment as Code Authority 

may prescribe. 

(d) No employer shall sell directly or indirectly by any means 

whatsoever, any product of the Subdivision covered by provisions 

of this Article VIII at a price or at discounts, or on terms of sale 

and payment different from those provided in his own current net 

price lists, or price lists and discount sheets, provided that nothing 

in the above shall prevent an employer from adding to his own price 

and/or price list and discount sheets by increasing his job price 

to include unusual selling, engineering, servicing, financing, financial 

risks, or other similar special charges. 

(e) No employer shall evade any provision of this Code by selling to or through any dealer, jobber, distributor or other selling 

agency which shall fail to agree to resell in accordance with the 

provisions of Articles VII, VIII and IX of this Supplemental Code. 2 

ARTICLE IX-TRADE PRACTICES 

Each of the following acts and practices is detmed to be inimical 

to the best interests of this Subdivision, and of the public, and each 

is, therefore, hereby declared to be, and to constitute, an unfair 

method of competition and is hereby prohibited, viz:-

1. No employer shall engage in destructive price cutting. 

2. No employer shall secretly 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 an employer 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 . 

. 3. No employer shall give, permit to be given, or offer to give, 

anything of value for the purpose of influencing or rewarding the 

• See paragraph 2 (2) of. order approving this Code. 
10 

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. 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. 

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

display, or of any other nature)hwhich is misleading or inaccurate 

in any material particular, nor s all any em~loyer in any way misrepresent any goods (including but without limitation its use, trademark, 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. 

5. No employer shall publish. or circulate unjustified or unwarranted threats of legal proceedings, which tend to, or hava the effect 

of harassing competitors or intimidating their customers. 

6. No employer shall take in trade or accept in trade any secondhand or old equipment in part payment for new, provided, however, 

that this provision shall not be construed to prohibit in any way 

the return within six months of the date of shipment, to the vendor 

and the allowance of any fair adjustment thereon by the vendor of 

any product which shall not meet the purposes for which it was 

sold. Any employer may, however, assist in finding a bona fide 

buyer for said equipment but shall in no case ta.ke any financial 

interest in it. 3 

7. So long as the maker of any product of this Subdivision bearing the maker's name or trademark, which has required special designing, research or development expense (or his successor in business) continues to make and supply such spare, repair and replacement parts therefor, supplying repair parts for such product of 

this Subdivision unless the name of the maker of such repair parts 

shall be plainly marked on each part (or if this is impracticable on 

the package or tag) so that the ultimate user is clearly informed 

by such markings on parts, packages, tags and in catalogues, price 

lists, quoted prices, of such parts that said parts were not made by 

the original maker of the products of the employers of this Subdivision.4 

8. No employer shall furnish to any purchaser, andj or his agent, 

directly or indirectly detailed drawings, of the products of this 

Subdivision, without filing a statement of such proposed transaction, 

with the Code Authority which shall approve or with the approval 

of the Administrator disapprove the transaction within ten (10) 

days by written notice to the employer.3 

9. No employer shall defame a competitor by falsely imputing 

to him dishonorable conduct, inability to perform contracts, questionable credit standing, or by other f alse representations, or by 

falsely disparaging the grade or quality of his goods. 

10. No employer shall willfully induce or attempt t~ induce the 

breach of existing contracts between competitors and their customers 

by any false or deceptive means, or interfere with or obstruct the 

8 See paragraph 2 (4) of order approving this Code. 

'See paragraph 2 (3) of order approving this Code. 
11 

performance of any such contractual duties or services by any such 

means, with the purpose and effect of hampering, injuring or embaTrassing competitors in their business. 

ARTICLE X-S_'...LES FOR ExPORT 

No prov1s1ons of this Supplemental Code relating to prices or 

tern1.s of selling, shipping, or marketing, shall apply to any export 

trade or sales or shipments for export trade. " Export Trade " shall 

be as defined in the Export Trade Act adopted April 10, 1918. 

ARTICLE XI-MoDIFICATioNs 

(a) As provided by 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. 

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

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

of the President, be from time to time amended, revised, added to 

or supplemented. 

ARTICLE XII-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is not 

designed to promote monopoly, and shall not be so construed or 

applied as to oppress or eliminate small enterprises or discriminate 

against them and is designed to effectuate the policy of the Act. 

ARTICLE XIII-W ITHDRA w AL 

Upon thirty (30) days' notice to Basic Code Authority and to the 

Administrator, this Subdivision may, upon the concurring affirmative vote of employers within this Subdivision entitled to cast twothirds or more of all the votes that might be cast by all employers 

within the Subdivision entitled to vote thereon, withdraw from the 

jurisdiction of Basic Code Authority. The eligibility of voters sha.ll 

be in accordance with Article V, Section (d) of this Supplemental 

Code and the method and effect of such voting shall be in accordance 

with Article VI, Section (d) of the Code. Thereafter this Supplemental Code, together with the provisions of the Code, except such 

portions of Articles I, II, VI, and VII as are not pertinent thereto, 

as determined by the Code Authority and the Administrator shall 

become the Code governing such former Subdivision, and its Code 

Authority shall become and be the sole Code Authority and shall 

perform all the functions thereof with respect to such Code. 

ARTICLE XIV-EFFECTIVE DATE 

This Supplemental Code shall become effective and binding on 

all employers in this Subdivision on the eleventh day after its 

approval by the President. 

Approved Code No. 347-Supplement No. 39. 

Registry No. 1414-06. 

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UNIVERSITY OF FLO RIDA 

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