Approved Code No. 347-Supplement No. 3 Registry No. 1312-07 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION . FOR THE 

LOCOMOTIVE 

MANUFACTURING INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON APRIL 30, 1934 

WI DO CUR PART 

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Approved Code No. 347-Supplement No. 3 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

LOCOMOTIVE MANUFACTURING INDUSTRY 

As Approved on April 30, 1934 

ORDER 

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE LOCOMOTIVE 

MANUFACTURING INDUSTRY 

A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with 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 Locomotive Manufacturing Subdivision of Machinery and Allied Products Industry, and 

hearings having been duly held thereon and the annexed report on 

said Supplemental Cod-e, containing findings with respect thereto, 

having been made and directed to the President: 

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

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

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 her-eby incorporate by reference said 

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 Locomotive Institute shall amend 

its Articles of Association and By-Laws to th-e 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. 

HUGH s. JOHNSON' 

Administrator for Industrial Recovery. 

Approval recommended: 

A. R. GLANCY, 

Division .Administra!,or. 

w ASHINGTON, D.C., 

April 30, 1934. 

55813.--482-179-34-2 (1) 
REPORT TO THE PRE IDENT 

The PRESIDE T, 

The White House. 

rn: Thi is a report on the Supplemental Code of Fair Competition for the Locomotive Subdivision of the Machinery and Allied 

Products Indu try, public hearing having been conducted ther on 

in vVashington, D.C., December 21, 1933, in accordance with the provisions of Title I of the National Industrial Recovery A t. 

GENERAL STATEMENT 

The Locomotive Institute, being truly representative of this Subdivision of the Machinery 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 

~larch 17, 1934. The Locomotive Industry is a capital goods indu - try and is engaged in the business of manufacturing and sellino- locomotives of more than 1,200 H.P. per locomotive used for tractive 

power on railroads and locomotive parts thereof. 

ECONOMIC EFFECT 

This Subdivision suffered noticeably from the effects of the Depression as follows : 

The value of production dropped from $66,870,000 in 1929 to 

$2,842,000 in 1933, a decrease of 95.8 percent. 

In 1933 factory employment declined 72.6 per cent from 1929. 

Factory payrolls in 1929 amounted to $17,99-l:,0OO and $1, 01 000 

in 1933, a decrease of 90 per cent. 

In June, 1933, average hours per man per week deer ased 38 per 

cent from June 1929; total man hours during the same period 

decreased 92.4 per cent. 

In June, 1933, hourly rates for fa tory wage earners decreased 

21.1 per cent from June, 1929 and weekly earning d creased 51.1 

per cent. 

The President's Reemployment Agreem nt eff cted substantial increases in employment and payrolls. 

An improved outlook is held for 1934 du to the purchase f lo omotives by railroads out of funds loaned for the purpose, by he 

Federal overnment. 

The Code will increa. e factory mpl ymrnt v r June, 1933 about 

4 per cent. nder the condition e. timat d t represent normal y 

for he industry the ode will in r a e employm nt about 9 p r c nt. 

The Code will increa e fa tory pa} roll over Jun 1933 about 

1.4 per cent. Office payrolls will be increa ed about 6.4' per cent. 

(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 thjs matter: 

I find that: 

(a) Said Supplemental Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, 

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 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 temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving standards of labo:r 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 group is an industrial group truly representative 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 

Code; on condition that The Locomotive Institute shall amend its 

Articles of Association and By-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 March 17, 

1934. 

Respectfully, 

APRIL 30, 1934. 

HUGH s. JOHNSON' 

Administrator. 
SUPPLE 1ENTARY ODE OF F IR COMPETITION FOR 

THE LO O 1:0TIVE M... UFACTURI GI DUSTRY 

A DTI'I ION OF THE MACHINERY A D ALLIED PRODUCTS INDUSTRY 

ARTICLE I-P-(JRPO ES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Supplemental ational Industrial Reco,;-ery Code for the Locomotive 

:Manufacturing Subdivision of the Machinery and Allied Products 

Industry and taken together with the National Industrial Recovery 

Code of the 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 Locomotive Institute, the address of which 

is 60 East 42nd Street, New York City, New York, a trade organization, all members of which are engaged in the manufacture for sale 

of products of the Locomotive Manufacturing Subdivision of the 

:Machinery and Allied Products Industry, which organization is truly 

repre entative of this Subdivision.1 

" Industry " means the Machinery and Allied Products Industry as 

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 Locomotive :t\1anufacturing Subdivision 

of Machinery and Allied Products Industry as defined and set forth 

in Article II of the National Industrial Recovery Code of the 

lYiachinery and Allied Products Industry1 as follows: 

"Locomotive 1anufacturing Subdivision means the building 

and/or manufact~ring for sale and selling of locomotives of more 

than 600 horsepower capacity per locomotive used for tractive power 

on railroads and/or fini hed and semi-finished component, repair 

and replacement parts thereof and/or therefor, by builders of locomotives and/or their affiliated companies; provided, however, that 

locomotives propelled by electric motors lincluding finished and/or 

semi-fini ·hed component, repair and replacement J)arts thereof 

and/or therefor and used therein) may be built and/or manufactured for sale and sold either by memoors of this ubdivision under 

this Code or by members of the Electrical Manufacturing Indu try 

under its Code. Locomotives of more than 600 hor epower capacity 

but not to xceed 1200 hor epower capacity and/or fini hed and mifini hed component, repair and r placement parts thereof and/or 

l See paragraph 2 ot order approving thls o(]e. 

(4) 
5 

therefor may be built and/or manufactured for sale and sold by the 

Small Locomotive Subdivision under this Code. 'Horsepower' 

means the figure arrived at by multiplying tractive effort ( taken at 

that speed at which the maximum horsep0wer will be produced) by 

the speed in miles per hour and dividing that result by 375. The term 

'affiliated company' as used in this paragraph means a company 

whose relations to another company are such that either one has, directly or indirectly, a substantial stock interest in the other, or that 

a third company has, dfrectly or indirectly, a substantial stock interest in both; provided, however, that in the event of a dispute or 

disagreement regarding the term' affiliated company' as used herein, 

such dispute or disagreement shall be referred for decision to an 

arbitration committee, elect€d or appointed by a fair method of 

selection. Should any member of this Subdivision desire to appeal 

from the decision of said arbitration committee, such member may 

appeal direct to the Administrator, whose decision in the matter shall 

be final." 

"Products of the Subdivision" means only those articles produced by the Subdivision as above defined. 

" Code" means the National Industrial Recovery Code of the 

~1achinery and Allied Products Industry, as approved by the President, and 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 as an employer of labor. 

" Employee" means anyone who is employed in the Subdivision 

by any such employer. 

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

Act. 

"The President" means the President of the Unit€d 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. 

"Group Code Authority" means the Code Authority- for any 

group or product classification within this Subdivision constituted 

under the authority of Article V of this Supplemental Code. 

ARTICLE III-ADOPTION OF EMPLOYMENT PROVISIONS OF Com~ 

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

Article IV, ' ,v ages " and Article V, " General Labor Provisions" 

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

effect as if they were written in.to this Supplemental Code. 

ARTICLE IV-ADOPTION OF OTHER PROYISIONS OF CODE 

The following Articles of the Code, viz : Article VI, "Administration ", to the extent that it shall be applicable to the administration 
6 

of thi 

RTI LE V-AD1\ll1''ISTR.ATIO 

(a) ode Authority for this ub livision i h reby on, titut d 

to admini r, uperYi and facilitate the enforc ment f the e 

and of this upplemental ode in the manner and to the ex nt 

provided in the ode and in this upplemental Code. 

(b) For a p ri d not exceeding sixty ( 60) days following the 

effective date and pending the election of permanent ode Authority, the rep re entati ve of the members of Applicant appointed as in 

the Articles of ociation and .By-Laws of Applicant provided, shall 

con titute a temporary ode Authority. The Admini tralor, in his 

di cretion, may appoint one additional m mber ( without vote and 

without expen e to the ubdivision). 

( c) Temporary Code Authority shall by written notice mailed to 

all mployers known to temporary Code Authority call a meeting 

of employers to be held ·within sixty (60) c.la} s after the effecti e 

date for the purpose of adopting procedural rules and regulations for 

the organization and operation of permanent Code Authority and 

electing a permanent Code Authority which shall consist of three (3) 

members. Members of permanent Code Authority shall be elected 

at such meeting by a plurality of the votes cast thereat. Each elective member of Code Authority shall be an employer or an executive 

officer of, or a partner in, an employer qualified to vote hereunder, 

but no two elective members shall be officers or repre entatives of the 

same employer, and for that purpose an employer owning more than 

two-thirds of the voting capital stock of another employer and that 

other employer shall together be considered as one and the same 

employer. The Admini trator may, in his discretion, appoint one 

member (without vote and without expense to the ubdivi ion) in 

addition to those elected as aforesaid. Permanent ode Authority 

so elected and appointed shall supersede the temporary Code 

Authority. 

( d) Any employer shall be entitled to vote at the election of permanent Code Authority and at other mcetincr of mployers and 

hare in the benefits of the activities of Code Authority and may participate in any endeavors of Code Authority in the preparation of 

any amendment or revi ions of, or additions or uppl m nt to this 

uppl mental ode by paying or agreeinO' to pay a and when 

a se ed his or its proper pro rata share of the co t of preparing, 

submitting and admini tcring this Supplemental ode as <l t rmined 

by od uthority. The co t of preparing, submitting an l admini - terin<Y this upplemental ode shall be borne by the mpl yers ntitled to vote h r under pro rata in the propor ion that the number 

of votes whi h the re p ctive employers are at the tim en itle l to 

ca. t bears to th total number of votes hich all the employers 

entitled to vote are at the time entitled to cast. 
7 

(e) At the meeting held for the election of permanent Code Authority and at other meetings of employers each employer qualified 

to vote thereat shall have and be entitled to cast as many votes as 

shall equal the quotient obtained by dividing by 100,000 the 

amount in dollars of the yearly average net sales of products of the 

Subdivision made by such employer ( exclusive of sales made between 

employers entitled to vote, either of which owns all the capital stock 

of the other) during the five preceding calendar years. Fractions 

in such quotient shall be disregarded, provided that each employer 

entitled to votB shall have at least one vote. All questions as to the 

number of votes which each employer entitled to vote shall be en- titled to cast at any meeting of employers shall be determined by 

Code Authority. At meetings of employers, including the meeting held for the purpose of electing permanent Code Authority, each 

employer entitled to vote may vote in person or by proxy duly 

executed by such employer and filed with the Secretary of the meeting. At meetings of employers, unless herein otherwise provided, 

the concurring vote of employers entitled to cast a majority of all 

the votes that might be cast at the meeting if all the employers 

entitled to vote were present thereat shall be required to carry any 

question. 

( f) Any employer in this Subdivision shall be eligible for membership in The Locomotive Institute. 

(g) Code Authority may adopt rules and regulations to govern 

its procedure and employ such personnel as it may deem necessary. 

(h) Employers in this Subdivision having a common interest and 

common problems may be grouped by Code Authority for administrative purposes into various groups or product classifications. There 

shall be a Group Code Authority approved or appointed by Code 

Authority for each such group or product classification. 

(i) If formal complaint is made to Code Authority that provisions of this Supplemental Code have been violated by any employer Code Authority or the proper Group Code Authority may 

cause such investigation or audit to be made, to the extent permitted by the Act, as may be deemed necessary. If such investigation is made by Group Code Authority it shall report the result of 

such investigation or audit to Code Authority for action. 

ARTICLE VI-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 Administrator, be from 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 vote of em- ployers entitled to cast at least two-thirds of all the votes that 

might be cast at a meeting of employers if all the employers then 

entitled to vote were present thereat, shall be in full force and effect 

upon approval by the Administrator. 
8 

ARTICLE VII-"'\V ITHOltA w AL 

A provided by Articl IX of th le upon thirty (30) days 

notic to Ba i ode Authority and to th clmini trator thi uhdi i ion may at a; m ting f mplo er by th affirmativ vote f 

mploy r entitled to ca. t at l a t t a-third of all th votes that 

micrht b ca tat uch meetino- if all th mplo r th n ntitle l to vote ., ere pr . nt th reat withdraw from th juri diction of Ba ic ode 

Authority. Thereafter thi upplemental ode, too-ether with the 

provi ion of th Code, except such portion of Article I, II, I an 1 

VII thereof as are not pertinent thereto, as det rmined by ode 

Authority an :I. the Admini trator, shall become the ode g verning 

thi ubdivision and Code Authority shall, for thi ubdivi. ion, 

becom the sole Code Authority and hall perform all the functions 

thereof with re pect to such Cod . 

ARTICLE , III- 1oNoPoLrns 

Applicant imposes and shall impose no inequitable restrictions on 

member hip therein. The Supplemental Co<le presented by it i not 

de igned to promote monopoly and shall not be con. trued or applied 

so as to oppress or eliminate 1nall enterpri es or discriminate again t 

them, and is de igned to effectuate the policy of the Act. 

ARTICLE IX-EFFECTIVE DATE 

, Thi 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. 

Appro,ed Code No. 347-Supplement No. 3. 

Registry No. 1312-07. 

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