Approved Code No. 198 Registry No. 1413-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY SAFETY APPLIANCE 

INDUSTRY 

AS APPROVED ON JANUARY 12, 19 

BY 

' • . . 1 : ----

-------------~ 

U.S. DEPOmTO,.Y 

1. Executive Order 

2. Letter of Transmittal I f 

3. Code 

I I l 

U NITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I ( 

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(II) 
Approved Code No. 198 

CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY SAFETY APPLIANCE INDUSTRY 

As Approved on January 12, 1934 

Order Approving Code of Fair Competition for the Railway 

Safety Appliance Industry 

An application having been duly made fursuant to and in full 

compliance with the provisions of Title I o the National Industrial 

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

Fair Competition for the Railway Safety Appliance Industry, and 

hearings having been duly held thereon and the annexed report on 

said Code, containing findings with respect thereto, having been 

made and directed to the President : 

NO\V, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Indu trial 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 Code complies in all respects with the 

per:tinent provisions and will promote the policy and purposes of said 

Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved. 

HUGH s. JOHNSON' 

Ad1ninistrator for Industrial Recovery. 

Approval recommended: 

MALCOLM M mn, 

Division Ad1ninist1'ator. 

\ VASHI 'GTON, D.O. 

January PE, 1934. 

29D03 °----~96-2 15----34 (33 ) 
The PRESIDENT, 

The White House. 

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

for the Railwa3 Safety Appliance Industry and on the hearing 

conducted thereon in W asbington, D.C. on October 11. 1933 in 

accordance with the pro\isions of the National Indu trial Recovery 

Act. 

RE ""Cl\IE OF C DE AS TO "WAGES AND HOL"R 

The Code provide that 8 hours hall constitute the normal number 

of working hour per day and 40 hour the normal number of working hours per week, and that employee hall not be permitted to 

work in exces of an a-verage of 40 hour per week in any 4 months' 

period, the fir t of '-rhich periods hall begin on the effective date 

of the Code. The e pro"lisions are applicable to all employees except 

traveling ale men out ide ervice men watchmen. 11ho may be permitted to work 56 hour per week. and per on employed in managerial executive, or technical work receiving not le than $35.00 per 

week. 

The minimum rate of pay proYided for production labor are 40 

cent per hour for men an l 35 cent per hour for women, and 

where women r eplace men ~uch women shall receive the same rates 

of pay a recei"led by the men ·o replaced. Time and one half shall 

be paid production employee for each hour worked in ex ess of 8 

hour per day or -10 hour per week. 

All other employee arr to be paid not le than $15.00 per week, 

except that a limited num er of learner and office boy or girls 

may be paid not le than 0 percent of the aboYe minima. 

Equitable adju tment are to be male of all wage rate aboYe 

said minima. 

Child labor i prohibited an l no per on nncl r 1 year of age 

shall be employed in hazardon occupation . 

GE -ERAL TATEl\IEXT 

The Railway afet~· ~ pplian e ~fanufacturing Inchrtry i a capital good indu try. It compri e the de ign, development manufacture, ale, and in tallation of power brake signal an l traincontrol y tem , and parts. It product are de igned for the safeguarding of mo\ement of car , locomotiYe . or trains. Its single 

cu tomer, ther fore. ~> the Railway , which en tomarily place orders 

on their 0\Yn initiatiYe a the need for equipment ari e . rather than 

upon solicitabon by member of the Inclu try. 

t34) 
35 

The inveshnent in the Industry is approximately $113,000,000, 

and the number of wage earners in normal times about 11,000 persons, with an estimated annual pay roll of $20,000,000. 

In 1928, which is considered a normal year, operation was at the 

rate of approximately 54 percent of capacity, with a value of production of about $45,000,000. Operation in 1929 was about 68 percent of capacity; in 1930-57 percent; in 1931-30 percent; and in 

1932-20 percent. The estimate fox 1933 is about 11 percent of 

capacity. 

Orders for repair and maintenance of parts v\·hich, in a normal 

year, amount to approximately 15 percent of the total volume 

of production, in 1933 have represented about 95 percent of the 

volume of production. New installation business is anticipated 

in 1934 which will add measurably both to the number of employees 

and the pay rolls of the Industry. 

I believe that the Code is fair to Industry, to Labor, and to the 

Public, and is in accordance with the intent and purpose of the 

National Industrial Recovery Act. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the proceedings in this matter: 

I find that-

( a) Said 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 m_anagement 

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 increa ·ing purcha ing power, by reducing and 

relieving unemployment, by improving tanclards of labor, and by 

otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Code as approved com plies 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 Industry; 

and that said group impo es no inequitable restrictions on admission 

to membership therein. 

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

nor monopolistic practices. 

(e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 
36 

(:f) Those engaged in other step of the economic process have not 

been depri Yed of the right to be heard prior to approval of said Code. 

For the e reasons, therefore, I haYe approYed thi Code. 

Respectfully, 

WASHINGTON, D.C., 

J a?iuary 1~, 1934. 

HuGH S. JoHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

RAILWAY SAFETY APPLIANCE INDUSTRY 

ARTICLE I 

To effectuate the policies of Title I of the National Ind·ustrial 

Recovery Act, the following provisions are submitted as a Code of 

Fair Competition for the Railway Safety Appliance Industry and 

upon approval by the President shall be the standards of fair com- petition for such Industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFIXITIOXS 

"\Vherever used in the Code or in any schedule appertaining thereto, 

the terms hereinafter in this Article defined shall, unless the context shall .otherwise clearly indicate, have the respective meanings 

hereinafter in this Article set forth. The definition of any such 

tern1 in the singular shall apply to the use of such term in the plural 

and vice ver,sa. 

The terms "President", "Act", and "Administrator", as used 

herein shall mean respectively the President of the United States1 the National Industrial Recovery Act, and the \..clministrator ot 

Title I of said Act. 

The term " the Industry " means and includes the business of the 

design, development, manufacture, sale, and installation of power 

brake, signal, and train control ,system ·, and apparatus, appliances 

and parts which have for their object the safeguarding of movement of cars, locomotives, or trains .on railways operated by steam 

electricity, or other motive power. 

The term "member of the Industry" means and includes but 

without limitation any individual, firm, association, corporation, 

trustee, receiver, or other form of enterprise, engaged in the Industry. 

The term " the Code " means and includes this Code and all 

schedules annexed hereto as originally approved by the President 

and all amendments hereof and thereof made as hereinafter provided. 

Except as otherwise required by any provision of the Code, the 

term " member of the Industry who assents to the Code " means any 

member of the Industry who assents to the Code as hereinafter 

provided. · ~ ' · Z) 

The term "Code Authority" means the Code Authority as from 

time to tim.e constituted whose members shall be chosen as hereinafter 

provided. 

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

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

compensated. 

(37) 
38 

The term "employer" as u ed herein mean anyone by whom 

any such employee is compensated or employed. 

The term "expiration date " as 11 eel herein means June 16, 1935, 

or the earliest date prior thereto on which .the President shall by 

proclamation or the Congr\)6S shall by joint re olution declare that 

the emergency recognized by Section 1 of Title I of the National 

Industrial Recovery Act has ended. 

AnTrCLE III-HouRs 

SECTION 1. Except as herein otherwise provided eight ( 8) hours 

of labor shall constitute the normal number of working hours per 

day and forty ( 40) hours of labor the normal number of working 

hours per week for all employees, and no employee shall be permitted 

to work in exces of an average of forty ( 40) hours per week in 

any four ( 4) months' period, the first of which period hall begin 

on the effective date of the Code. 

SEc. 2. No employer shall knowingly permit any employee to 

work for any time which when totaled with that already performed 

with another employer or employers in the Inclu try ex ·eeds the 

maximum permitted herein. 

SEc. 3. The provisions of this Article hall not apply to traYelling 

salesmen or to outside service men, persons employed m managerial, 

executive, or technical \York, or to member · of their respective staffs 

whose rate of pay i not le s than thirty-f:iYe (35) dollars per week; 

nor shall they apply to 'Yatchmen, who ma} be permitt d to work 

fifty-six (56) hour per '"eek. 

ARTI LE IV-\Y AGES 

SECTION 1. The minimum 'wage that shall be paid by any employer 

to any employee engaged in the processing or installation of the 

products of the Industry or in labor operations directly incident 

thereto, shall be not les than forty ( 40) cents per hour for male 

and thirty-five (35) cents per hour for female employee ; proYirled, 

that if males be replaced by females, for the same operabon such 

female shallreceiYc the same rate of pay as the males receiYed, and: 

provided that learner may be paid not les. than eighty (80) percent 

of the above-stated minimum rates and that the number of learners 

receiving le s than uch minimum rates shall not exceed five ( 5) 

percent of the total number of such employees. Employees engaged 

in the processing or installation of the products of the Industry and 

in labor operations directly incident thereto shall be paid not less 

than one and one half (llh) times their regular hourly rate of pay 

for all exces hours worked over eight (8) hour per day or forty 

( 40) hours per week 

SEc. 2. The mi11imum wage that hall be paid by any employer 

to all other employees, except commission sale people, ·hall be at 

the rate of fifteen ( 15) dollars per week; provided, however, that 

office boys and girls and student learners may be paid not less than 

eighty (80) percent of such minimum wage, but the number of 

such office boys or girls and student learners paid at a rate of le s 

than fifteen ( 15) dollars per week hall not exceed five ( 5) percent 
39 

of the total nu·mber of employe s coYcred by the provisions of this 

paragraph . 

. SEc. 3 .. The minimum rates of pay ab:.>ve established shall apply 

Irrespective of whether an employee is actuallv compensated on a 

time r ate, piecework, or other ba is. · 

SEc. 4. Equitable adjustment in all pay schedules of factory employees above the minima shall be made not later than fifteen 

(15) days from the effective date of the Code by any employers 

who have not theretofore made such adjustment ·, and the first reports 

of wages, required to be filed under the Code, hall contain all wage 

increases made since June 15th, 1933. 

SEc. 5. A person whose earning capacity is limited because of age 

or ph:ys~cal or mel?-tal handicap may ?e employed at a wage below 

the m1mma established by the Code If the employer obtains from 

the State Authority designated by the United States Department of 

L abor 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 employees so 

employed by such employer. 

SEc. 6. Employers shall not reclassify employees contrary to fact 

with reference to work performed, with the intention of defeating 

the purpo e · of the Act. 

ARTICLE V-GENERAL LABOR PROYISIONS 

SECTION 1. Employers shall not employ anyone under the age of 

sixteen (16) years. No person under eighteen (18) years of age 

shall be employed at operations or occupations which are hazardous 

i.n nature or dangerous to health. 

SEc. 2. As required by Sub-Section (a) of Section 7 of the 

National Industrial Recovery Act : 

(a) 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 agent , in the 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; 

(b) No employee and no one seeking employment shall be required as a condition of employment to join any company union or 

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

of his own choosing; and 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President. 

SEc. 3. All employers shall post complete copies of the Code in 

conspicuou places accessible to all employees. 

ARTICLE VI- ADlVIINISTRATION 01'' THE c DE 

SECTION 1. A Code Authority is hereby constituted which shall con- sist of seven members elected by the members of the Industry who 

assent to the Code. The method of selection and voting shall be as 

determined by the bylaws of the Code Authority of the Industry 
40 

subject to the approval of the Admini tl·ator. In addition to membership as aboYe provided, the \.dministrator may appoint a member to the Code Authority, or not more than three members, such 

member or members to sit without vote and to serve for terms a::; 

fixed by the Administrator. Any such representative shall serve 

without expense to the Industry unless by agreement approved Ly 

the Administrator and, together with the Administrator, shall be 

given notice of and may sit at all meetings of the Code Authority. 

SEc. 2. Each trade or industrial association, directl{' or indirectly, 

participating in the selection or activities of the Code Authority 

shall (1) impose no inequitable restrictions on membership, and (2) 

submit to the Administrator true copies of its articles of association, 

bylaw.s, regulations, and any amendments when made thereto, together with such other.informn.tion as to membership, organization, 

and activitie as may be nece sary to effectuate the purposes of the 

Act. 

SEc. 3. In order that the Code Authority shall at all times be 

truly representative of the Industry and in other respects comply 

with the provisions of the Act, the Administrator may provide such 

hearings a.s he may deem proper, and thereafter if he shall find that 

the Code Authority is not truly repre entative or does not in other 

respect comply w1th the provisions of the Act, may require an appropriate modification in the method of selection of the Code 

Authority, or any subcode Authority. 

SEc. 4. :Members of the Industry shall be entitled to participate in 

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

to participate in the selection of the members thereof by assenting 

to the Code as required by the bylaws and complying with the requirements of the Code and sustaining their reasonable share of the 

expenses of its administration. Such reasonable share of the expenses of administration shall be determined by the Code Authority 

on the basis of proportionate pay rolls as required by the bylaws. 

SEc. 5. Any member of the Indu try who desires to become an assenting member to the Code, may do so by signing and delivering to 

the Secretary a letter ubstantially in the form set forth in Schedule 

A annexed hereto. 

SEc. 6. Nothing contained in the Code shall constitute the members 

of the Code Authority partner for any purpose. Nor shall any 

member of the Code Authority be liable in any manner to anyone 

for any a t of any other member, officer, agent, or employee of the 

Code Authority. Nor shall any member, officer, agent, or employee 

of the Code Authority exerci ing rea onable diligence in the conduct 

of his dutie hereunder, be liable to anyone for any action or omission to act under the Code, except for his own wilful misfeasance 

or nonfea ance. 

SEc. 7. The Cocle Authority shall have the following further 

pow rs an l <lutic. : . (a) To u e it be t effort to insure the execution of the provisions of the Code and provide for the compliance of the Industry 

with the proYisions of the Act. 

(b) To adopt bylaws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

(c) To obtain from members of the Industry such statistical information and reports as are required for the administration of the 
41 

Code, which information and report shall be ·ubmitted by the Code 

Authority to such administrative and/or government agencies as the 

Administrator may designate; provided that nothing in the Code 

shall relieve any member of the Industry of any existing obligations 

to furnish reports to any government agency. No individual reports shall be disclosed to any other member of the Industry or to 

any other party except to such governmental agencies as may be 

directed by the Administrator. 

(d) To u e such trade associations and other agencie as it leems 

proper for the carrying out of any of its activitie provided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under the Code an l that such 

trade a sociations and agencies shall at all time be ,subject to and 

comply with the provi ions hereof. 

(e) To -ecure from members of the Indu try an equitable and 

proportionate payment of the reasonable expenses of maintaining the 

Code Authority and its activities. 

(f) To initiate, consider, and make recommendation for the 

modification or amendment of the Code. 

SEc. 8. In addition to the information required to be ubmitted to 

the Code Authority as set forth in thi Article, there shall be furnished to Government agencies such statistical information as the 

Administrator may deem neces ary for the purpose recited in 

Section 3 (a) of the National Industrial Recovery Act. 

SEc. 9. Any action taken by the Code Authority relative to the 

Administration of this Code, except where specifically made subject 

to the approval of the Administrator, may, in the discretion of the 

Code Authority be ubmitted to the Administrator for approval, and 

shall in any ca e be subject to the disapproval of the Administrator. 

ARTICLE YII-~fODIFICATION AND Al\IEND)IENTS 

SECTION 1. The Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provisions of ub ection (b) of Section 10 of the National Industrial 

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

approval, license, rule, or regulation is ·ued under Title I of said Act 

and specifically, but without limitation, to the right of the President 

to cane l or modify his approval of the Code or any conditions 

imposed by him upon his approval thereof. 

SEc. 2. The Code, except as to the provisions required by the Act, 

may be modified on the. ba. is of experience or changes in circumstances, such modifications to be based UI on application to the 

Admini trator and uch notice and hearing a · he shall specify, and 

to become effective on approval of the President. 

ARTICLE YIII-GE~ -EnAL Pnonsro ~ ~ 

SECTION 1. If any employer in the Industry is also an employer 

in any other industry, the provi ions of the Code shall apply to and 

affect only that part of the bnsiness and prodncts of snch employer 

whi ch are included in th Indn try. 
42 

SEc. 2. No provision of the Code shall be so applied as to permit 

monopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate against small enterprises. 

ARTICLE IX 

The term " effective date of the Code " means 12 :01 a.m. on the 

third Monday after the Code shall have been approved by the 

President pursuant to the National Industrial Recovery Act. 

Approved Code No. 198. 

Registry No. 1413-01. 
• < 'Ill<~Dl'LE A 

FOR I OF LETTER OF A, • B::\'T TO THE CODE 

-----, 193-. 

To the Secrcta1 y ot the Cod ' A.utl10I'ity of th Code of Fair Competition for the 

Railway Safety Appliance Industry. 

DEAR SIR: The undersigne l. ~iring·to LJc (·ome u member who as ·ents to the 

Code of Fair Competition for the Railway Safety Applian e Indu try, a copy 

of which i ann xed hereto, marked Annex A, hereby a. ent to all of the 

provision of said Code (hereinafter referred to as the ode), and effective on 

the third Monday after the date on which the Code shall haYe been approved 

by the President of the United States of America as therein provided, or as 

of the date on which thi letter shall have been delivered, if delivery thereof 

shall haYe been made . ub equent to the third l\Ionclay after the ode sllall have 

been approved by said President as aforesaid, by the signing and delivery of 

this letter, becomes a member who a sents to the Code and agree. to the By-Laws 

of the Code Authority, a copy of which may be obtained from the Secretary 

of the Code Authority. 

For all purposes of the ode, the aclclres. of the undersigned, until it hall 

file with the Secretary of the Code Authority written notice of a hange of 

such addres , ·ball be as set forth at the foot of thi letter. 

Very truly yours, 

Adflre !;; : --------. 

(43) 

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