Approved Code No. 138 Registry No. 1318-1-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ANTI-FRICTION BEARING 

INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

UNlV. OP· FL L\I. 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFIC2 

WASHINGTON : 1933 

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Approved Code No. 138 

CODE OF FAIR COMPETITION 

FOR THE 

ANTI-FRICTION BEARING INDUSTRY 

As Approved on November 27, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly m·ade, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

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

Fair Competition for the Anti-Friction Bearing Industry, and hearings having been held thereon and the administrator having rendered 

his report containing an analysis of the said code of fair competition 

t-0gether with his recommendations and findings with respect thereto, 

and the administrator having found that the said code of fair competition complies in all respects with the pertinent :provisions of title I 

of 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 and recommendations, 

and findings of the administrator and do order that the said code of 

fair competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended : 

HUGH s. JOHNSON, 

Administrator. 

THE WHITE HousE, 

November 27, 1933. 

23787°-244- lOG- 33 

(473) 
NOVEMBER 14, 1933. 

The PRESIDENT, 

The White House. 

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

Anti-Friction Bearing Industry in the United States, the hearing 

having been conducted in Washington on October 24, 1933, in acco:rdance with the provisions of the National Industrial Recovery Act. 

PROVISIONS FOR HOURS AND WAGES 

Factory employees are limited by the Code to 40 hours per week 

and 8 hours per day; except during periods of unusual production 

demand, when 48 hours per week will be permitted in any 6 weeks 

of any 6-month period, provided that the average over a 6-month 

period is no more than 40 per week. These employees as well as 

those engaged in emergency maintenance and repair work ( to whom 

the hour limitation will not apply) will be paid time and a half 

overtime rate for all hours worked in excess of 8 per day or 40 per 

week. A tolerance of 10 percent over 40 hours per week is provided 

for employees engaged in preparation, care, and maintenance, stock 

and shipping clerks, and deliverymen. 

The hour limitation will not apply to service men, traveling salesmen, nor to persons in a managerial, executive, or supervisory capacity receiving $35.00 per week or more. Watchmen will be limited to 

56 hours per week. Accounting, clerical, service, sales, or other 

salaried employees are limited to 40 hours per week averaged over 

any one-month period, and 48 hours in any one week. 

The minimum wage provided for factory workers will be 40 cents 

per hour; except for work not reg_uiring the strength and skill of 

adult male labor, for which the minimum will be 35 cents an hour. 

The minimum wage for office employees will be $15.00 per week in 

cities of over 500,000 population and fractionally less in proportion 

to the population in smaller cities down to $14.00 per week. The 

minimum to office boys and girls, messengers, and old or partially 

disabled employees will be not less than 80 percent of the rates for 

their class of work. No distinction in rates will be made between 

male and :female employees in the same occupation. 

CHILD LABOR 

No person under 16 years will be employed in this Industry, and 

not under 18 years in hazardous occupation. 

ECONOMIC EFFECT OF CODE 

The 40-hour week prescribed in this Code and ado:pted under the 

President's Re-employment Agreement, in addition to unproved business, has increased the number of employee 46 percent since June 

1933 when the hour averaged 46 per week. 

(474) 
475 

After the application of the President's Re-employment Agreement, the number of employees in the Industry increased to 13,700 in 

August, or an increase of about 39 percent since June and 95 percent 

since March 1933. In September the addition of 800 employees 

brought the total to nearly 90 percent of the 1929 level. 

The average wage rate for female employees in August 1933 was 

about 28 cents; so that the minimum rate of 35 cents for female 

labor prescribed by the Code is higher than the old average and 

well above the previous minimum. 

The automobile industry is the largest user of anti-friction bearings. The bearings are also used in electric motors, machine tools, 

bicycles, and for many other devices. In 1929 the total sales 

amounted to $107,767,000. By 1932 sales had declined to $25,984,000, 

or 76 percent. The ratio of sales to capacity in 1929 was approxin1ately 98 percent; and in 1932 this ratio had declined to 26 percent. 

At present there are 26 concerns in the Industry. 

FINDINGS 

The Administrator finds that : 

(a) The Code as recommended complies in all respects with the 

pertinent provisions of Title I of the Act, including, without limitation, subsection (a) of Section 7 and subsection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

Anti-Friction Bearing Industry; and that 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate 

to discriminate against them, and will tend to effectuate the policy of 

Title I of the National Industrial Recove~y Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

ANTI-FRICTION BEARING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

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

Fair Competition for the Anti-Friction Bearing Industry, and shall 

be binding on every member thereof. 

ARTICLE II-DEFINITIONS 

The following words are used in this Code with the meanmgs 

set forth below : 

The term " the Industry " as used herein shall mean and include 

the manufacturing or the sale by manufacturers or by directly owned 

or controlled selling affiliates of manufacturers of anti-friction bearings of the ball or roller type or any of their several parts such as: 

races, balls, rollers, needle rollers, separators, or other parts included 

in the assembly of an anti-friction bearing as an integral part 

thereof. 

The term "employee" as used herein includes any person engaged 

in any phase of the Industry in any capacity in the nature of employee, irrespective of the nature or method of payment of his 

compensation. 

The term "employer" as used herein includes anyone by whom 

such an employee is compensated or employed. 

The term " n1ember of the Industry" includes any individual, firm, 

association, or corporation, or other person operating a plant or 

plant in the United States for the production of anti-friction bearings of the ball or roller type of any of their several parts, such as: 

races, balls, rollers, needle rollers, separators, or other parts included in the assembly of an anti-friction bearing as an integral part 

thereof. 

The term "member of the Code" includes any member of the 

Industry who shall signify assent to this Code. 

The term "effective date" as used herein means the tenth day 

after this Code shall have been approved by the President of the 

United States. 

The term "apprentice" as used herein means a person ( usually a 

minor) bound by indenture to serve an employer for a term of years 

at a predetermined wage for the period of the indenture in order 

to learn a trade, art, or profession. 

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

Act. 

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

(476) 
477 

The term "Administrator" means the National Industrial Recovery Administrator. 

·The term "Administration " means the National Industrial Recovery Administration. 

The term "Association" means the Anti-Friction Bearing lVIanufacturers' Association, a trade association having its office at the 

Hotel Biltmore, 43d Street and ~1adison Avenue, New York, New 

York. 

The term " Board of Directors " means the Board of Directors of 

the Association. 

Population for the purposes of this Code shall be determined by 

reference to the 1930 Federal Census. 

ARTICLE III-HoURs 

On and afrer the effective date of this Code : 

(ai) Factory employees, mechanical workers or artisans in the 

Industry, except as hereinafter provided, shall not be employed in 

excess of forty ( 40) hours per week, nor more than eight hours in 

any 24-hour period; provided, however, that during any period 

in which a concentrated demand upon any division of the Industry 

shall place an unusual and temporary burden for production upon 

its facilities, an employee of such division may be permitted to work 

not more than forty-eight (48) hours per week in not more than 

six (6) weeks of any six months period; provided that such employee 

shall be paid one and a half (11⁄2) times his normal rate of pay for 

any time worked in excess of eight (8) hours in any 24-hour period 

or of forty (40) hours in any seven (7) days. 

There shall be a tolerance of ten percent ( 10%) additional hours 

over forty (40) hours per week or 8 hours in any twenty-four (24) 

hour period for employees engaged in the preparation, care, and 

maintenance of plant, machinery and production facilities; stock 

and shipping clerks; and delivery employees. 

The maximum hours fixed in the foregoing section shall not apply 

to any employee on emergency maintenance or emergency repair 

work involving breakdowns or protection of life or property, but 

in any such special cases one and one half times the normal rate 

shall be paid for hours worked in excess of the normal hours herein 

provided. 

( b) The limitation as to hours of labor shall not apply to watchmen, service men, commercial travelling salesmen, or to persons in 

a managerial, executive or supervisory capacity who now receive 

thirty-five ($35) dollars or more per week, provided, however, that 

watchmen shall not work in excess of fifty-six ( 56) hours in any one 

week. 

( c) No employer shall work any accounting, clerical, service, or 

sales employee more than forty ( 40) hours per week on a one month 

average, nor more than forty-eight (48) hours in any one week. 

( d) No employee shall work or knowingly be permitted to work 

for a total number of hours in excess of the number of hours prescribed for each week and day, whether employed by one or more 

employers. 
478 

ARTICLE IV-WAGES 

On and after the effective date of this Code: 

(a) The minimum wage that shall be paid factory employees in 

this Industry shall be forty ( 40) cents per hour; except that for light 

repetitive work and such other light factory work as does not usually 

require the strength and skill of adult male labor (provided that no 

adult male labor shall be used for such work except at the rate above 

provided), the 1ninimum rate shall be thirty-five (35) cents per hour. 

( b) No distinction in rates stipulated in this Article IV shall be 

made between male and female employees where the same class of 

work is performed, regardless of whether compensation is calculated on an hourly, weekly, monthly, or piecework basis; but in no 

case shall the rate for adult male labor be less than forty ( 40) cents 

per hour. In any operation whe,re female employees dispiace adult 

male employees such female employees shall receive at least the same 

rate as the adult male employees they displace. 

( c) All employees mentioned in paragraph ( c) of Article III 

shall be paid at the following rates in cities of the sizes listed below 

and their immediate trade areas : Over 500,000 population, not less 

than $15 per week; between 250,000 and 500,000 population, not less 

than $14.50 per week; under 250,000 population, not less than $14.00 

per week. 

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

Article III now receiving compensation at a rate in excess of the 

minimum provided in paragraph (c) of this Article IV shall have 

their compensation reduced on account of any reduction in the weekly 

hour of employment made to conform with the requirements of 

paragraph ( c) of Article III. 

( e) This Article IV establishes a minimum rate of pay which 

shall apply, irrespective of whether an employee is actually compen ated on a time rate, piecework, or other basis, and in no case 

shall the rates of pay provided herein be decreased. 

(f) A person whose earning capacity is limited because of age or 

physical handicap may be employed on light work at a wage below 

the minimum established by this Code, if the employer obtains from 

the State Authority designated by the United States Department 

of Labor a certificate authorizing his employment at such wages and 

for uch hours as shall be stated in the certificate. Each employer 

shall file with the Code Authority a list of all such persons employed 

by him. 

(g) The provisions in paragraphs (a) and ( c) of this Article IV 

relating to rates of wages shall not apply to apprentices, office boys 

and girls, messengers, or to old or partially disabled employees, not 

exceeding five percent ( 5% ) in number of the employees of any 

employer. 

( h) The minimum wage that shall be paid to office boys and girls, 

messengers, or to old or partially disabled employees by any member 

of this Industry shall be not less than 80% of the minimum wage 

stipulated in paragraph ( c) of this Article IV. 

( i) The wage rates for all operations and duties which are in 

excess of the minimum, herein prescribed, shall be equitably adjusted 

and in no case shall they be decreased. The action taken shall be 
479 

reported to the Code Authority not later than ixty (60) days after 

this effective date and to the Administrator at his request. 

(j) In determining his classification under this Code, each employee shall be entitled to claim the benefit of the classification 0£ 

occupation existing on June 16, 1933. 

(k) Nothing in this Article IV shall apply to or affect any employee apprenticed to any employer by an indenture made in pursuance of the laws of any State of the United States, or by a written 

contract under any apprentice system established and maintained by 

any employer, provided that such contract is filed with the Code 

Authority, and subject to review by the Administrator. 

ARTICLE V-CHILD LABOR 

No person under sixteen (16) years of age shall be employed in 

the Industry. No person under eighteen (18) years of age shall be 

employed at operations or occupations which are hazardous in nature 

or dangerous to health. In any State an employer shall be deemed 

to have complied with this provision as to age if he shall have on 

file a certificate or permit duly issued by the Authority in such State 

empowered to issue employment or age certificates or permits showing that the employee is of the required age. 

ARTICLE VI-ADMINISTRATION 

1. To further effectuate the policies of the Act, a Code Authority 

is hereby set up to cooperate with the Administrator in the administration of this Code. 

(a) The Code Authority shall consist of six members of the Association ( no two of whom shall represent the same manufacturer), 

appointed by the Board of Directors of the Association; and one 

representative of members of the Industry who are not members 0£ 

the Association (providing they desire such representation, and 

signify their willingness to pay their pro rata share of the cost of 

administering this Code). In addition to the members of the Code 

Authority appointed by members of the Industry, the Administrator 

may appoint not more than three representatives of the Government. 

Such Government Representatives are to be appointed for terms of 

from six ( 6) months to one ( 1) year and if more than one ( 1) such 

representative is appointed, their terms shall be so arranged that 

they will not expire at the same time. The Board of Directors may 

change its appointees from time to time as it may desire, and shall 

advise the Administrator of any such changes. The appointee or 

appointees of the Administrator shall act in an advisory capacity 

only, and shall have no vote. The representative of the nonmembers 

shall be elected by the nonmembers in any fair manner approved 

by the Administrator. 

(b) The Association shall impose no inequitable restrictions on 

membership, and shall submit to the Administrator true copies of its 

articles of association, and bylaws or regulations and any amendments when made thereto, together with su h other information as 

to membership, organization, and activities as the Administrator may 

deem necessary to effectuate the purposes of the Act. 
480 

( c) 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 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

(d) Any member of the Industry is eligible for me1nbership in 

the Code, and there shaU be no inequitable restrictions on such membership. Any such member may participate in the preparation of 

and any revision or additions or supplements to this Code by assuming his pro rata share of the cost and responsibility of administering 

it, either by becoming a member of the Association and paying the 

annual dues and assessments of the Association, or by paying to the 

Code Authority his pro rata share of the costs of administering 

the Code. 

2. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act and subject to review and disap_proval or modification by the Administrator. 

(a) To collect from members of the Industry, directly or through 

an impartial agency, all data, reports, and statistics when and as 

required by the President and/or the Administrator and/or their 

agent or agents J also to collect such data, reports, and statistics as 

may be required from time to time by the Code Authority; also to 

collect and furnish to government agencies such statistical information as the Administrator may deem necessary for the purposes 

recited in Section 3 (a) of the Act. All such information shall be 

confidential, except insofar as disclosure may be necessary £or the 

effective administration and enforcement of this Code. Such data 

as may be requested b:y the Administrator shall be made available 

to him. Reports submitted by the Code Authority to the President 

or the Administrator shall be in the forin prescribed or provided by 

the President or the Administrator. Nothing in this subdivision 

shall be considered as limiting the powers conferred on the President 

or the Administrator by Title I of the Act. 

(b) The Code Authority may require from the members of the 

Industry reports regarding prices, or prices and discounts on closed 

transactions, or such other pertinent data on closed transactions as 

in its opinion may be necessary to effectuate Title I of the Act, and 

may publish the same should such procedure be deemed advisable. 

( c) To represent the Industry in conferring with the President 

or his agents with respect to the administration of this Code and 

in respect of the National Industrial Recovery Act and any regulations issued thereunder. 

( d) To hear complaints and attempt to adjust the same. 

( e) 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, all with approval 

of the Administrator. 

( f) To study the trade practice provisions of Article VII hereof, 

and the operation thereof, and make recommendations from timo 

to time to the Administrator which it deems desirable for modifica-
481 

tion or addition thereto, which, upon the approval of the Administrator, after such hearing as he may prescribe, shall become a part 

of this Code and have full force and effect as provisions hereof. 

(g) To make rules and reo-ulations necessary for the administration and enforcement of this <Sode, subject to the right of any affected 

person to appeal to the Administrator. 

(h) Any notice, demand, or request required or permilted to be 

given to or to be made upon any member of the Industry shall be 

sufficiently given if mailed, postage prepaid, addressed to such member of the Industry, at his address on file with the Secretary of the 

Code Authority. 

ARTICLE VII-U NFAIB PRACTICES 

For the purpose of ~he Code, the following shall constitute unfair 

practices: (a) The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other misrepresentations with the tendency 

and capacity to mislead and deceive purchasers or prospective 

purchasers. 

(b) Enticing away the employees of competitors with the purpose 

and effect of unduly hampering, injuring, or embarrassing competitors in their business. Nothing in this paragraph will prevent 

any employee from offering his services to a competitor or prevent 

any employer from employing an employee of another member of 

the Industry when the initiative of such change of employment is 

taken by the employee. 

( c) Paying or allowing to any purchaser in connection with the 

sale of any product any secret rebate, commission, credit, discount, 

adjustment, or similar concession, other than as specified in the 

contract of sale. 

( d) False disparagement of the weight, substance, strength grade, 

or quality of the goods of competitors, with the tendency and capacity 

to mislead or deceive purchasers or prospective purchasers. 

( e) To sell any product at a price or upon such terms or conditions as will result in the customer paying for the goods received 

less than cost, arrived at by a uniform system of accountino-, or 

uniform accounting formulas established or adopted by the Code 

Authority to become effective not less than thirty (30) days after 

adoption by the Code Authority. The Code Authority shall study 

the operation of such system of accounting or accounting formulas 

and may from time to time make such modifications therein as it 

may deem necessary. 

Any action taken by the Code Authority under thi sub ection 

( e) shall be subject to review and disapproval by the Administrator. 

(/) Selling or offering to sell any product with intent to deceive 

purchasers or prospective purchasers as to the quantity, quality, 

grade or substance of such product. 

(g) Making or promising to any purchaser or pro pecti ve pur-

(lhaser of any product, or to any officer, employee, agent, or representative of any such purchaser or pro pective purchaser, any bribe, 
482 

gratuity, or other payment or remuneration, directly or indirectly, 

for the purpose of influencing a sale. 

( h) Any additional practices which shall be declared to be unfair 

by an amendment to the Code. 

( i) Using or employing any unfair practice hereinbefore specified 

shal1 be deemed to be a violation of the Code, and any member of 

the Industry who shall directly or indirectly, through any officer, 

employee, agent, or representative, knowingly use or employ any 

of such unfair practices, shall be guilty of a violation of the Code. 

ARTICLE VIII-GENERAL PROVISIONS 

(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 a~ents, in the designation of such representatives or 

in self-organizat10n or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

( b) No employees and no one seekin~ 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. 

(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. . 

( d) All employers shall post complete copies of this Code in conspicuous places accessible to employees. 

( e) This Code and all the provisions hereof are expressly made 

subject to the right of the President, in accordance with the provision of subsect10n ( 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 issued under Title I of said Act 

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

to cancel or modify his approval of this Code or any conditions 

imposed by him upon his ap:proval thereof. 

(/) Within each State this Code shall not supersede any laws of 

such State imposing more stringent requirements on employers regulating the age of employees, wages.;, hours of work, or general workina conditions than under this Coct.e. 

(_g) Such of the provisions of this Code as are not required to be 

included herein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated as changes 

in circumstances or experience may indicate. It is contemplated that 

from time to time supplementary provisions to this Code or additional Codes may 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 consistent with the provisions thereof. 

( h) No provision in this Code shall be interpreted or applied in 

such manner as to: (a) promote monopolies or mono]?olistic :practices; ( b) permit or encourage unfair competition; ( c) eliminate 
483 

or oppress small enterprises; or ( d) discriminate against small 

enterprises. 

( i) Nothing contained in this Code shall be deemed to constitute 

the members of this Code partners for any purpose. None of the 

members of the Code shall be liable in any manner to an) one for any 

act of any other member of the Code, or for any act of the Code 

Authority, the Association, the Board of Directors, or of any committee, or of any officer or employee appointed under the Code. 

None of the members of the Code Authority or of the Association or . of any committee appointees under the Code shall be liable to anyone 

for any action or omission to act under the Code, except for his own 

wilful misfeasance or nonfeasance. 

(j) If any member of this Industry is also a member of any other 

Industry, the provisions of this Code shall apply to and affect only 

that part of the business of such member as is a part of the Industry 

covered by this Code. 

(k) This Code shall be in effect beginnini on the tenth day after 

its approval by the President and shall be bmding upon all members 

of the Industry. 

Approved Code No. 138. 

Registry No. 1318-1--02. 

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