Approved Code No. 439 Registry No. 1414-07 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

TANK CAR SERVICE 

INDUSTRY 

AS APPROVED ON MAY 22, 1934 

WI DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASIDNGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - Price 5 centa 
This public::ltion is for sale by the Superintendent of Documents, Government 

Printing Offi ce, Washington, D.C., and by district offices of the Bureau of 

F or eign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga .: 504 Post Office Building. 

Birmingllam, Ala.: 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. 

Charleston, S.C. : Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. Detroit, Mich. : 801 First National Bank Building. 

H ouston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn. : 213 F ederal Building. New Orleans, La. : Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va. : 406 E ast Plume Street. 

Phila delphia , Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa. : Cllamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St . Louis, Mo.: 506 Olive Street. 

Sa n Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 439 

CODE OF FAIR COl\fPETITION 

FOR THE 

TANK CAR SERVICE INDUSTRY 

As Approved on May 22, 1934 

ORDER 

ConE OF FAIR CoMPETITION FOR THE TANK CAR SERVICE INDUSTRY 

An application having been duly made pur uant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933 for a.pproval of a Code of 

Fair Competition for the Tank Car Service 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: 

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 other\\ise; do hereby incorporate by reference said annexed 

report and do find that said Code com.plies in all respects with the 

pertinent provisions and will promote the policy and purposes of 

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

Competition be and it is hereby approved. 

HuGH S. JOHNSON, 

Administrator for Industrial Rec01Jery. 

Approval recommended: 

K. 1v1. SIMPsoN, 

Division Administrator. 

WASHINGTON, D.C., 

May 932, 1934. 

61349°----544-130----34 (315) 
REPORT TO THE PRESIDENT 

The PRESIDEN'l', 

T l~e lV hite House. 

Sm: The original Code of Fair Competition for the Tank Car 

Service Industry was submitted on October 4, 1933, by the Tank Car 

Service Association, an unincorporated membership society organized in 1933-, whose members are estimated to r epresent ninety-five 

percent of the total volume of the Industry. Several revisions of 

the Code were made prior to the public hearing, which :public hearing 

w.as held on February 16, 1934. The Code was revised during a 

recess of this hearing and was presented in its present form for approval. Every person who requested appearance was properly 

heard in accorcL:'lnce with the provisions of the Act. 

ECONOMIC EFFECTS OF THE CODE 

Employment in this Industry is relatively small in proportion 

to invested capital. Peak employment was reached in 1929 and 

totaled 2,256 employees. The figure for 1933 placed employment 

f or the first half of that year at 1,878 employees and the aggregate 

invested capital amounted to approximately $92,500,000. 

The annual volume of business r eached its peak in 192.9, with 

forty-five concerns reporting gross revenues of approximately 

$26,560,000. The gross revenues declined approximately forty percent between 1929 and 1932, amounting to a~proximately $16,500,000 

in the latter year. The 1933 returns covenng the first six months 

indjcate gross revenues of $8,047,000 and suggest a total for the calendar year 1933· approximating that of the preceding year. 

PRO"VISIONS OF THE CODE AS TO W ACES AND HOURS 

This Code limits the working week to forty hours and to six days, 

and the working day to eight hours. Exceptions are permitted for 

service employees who may be employed not in excess of fortyfour hours per week; also traveling and sales employees or :persons 

employed in a managerial or executive capacity, plant supenntendents, shop foremen and car inspectors receiving not less than thirtyfive dollars per week, and employees on emergency maintenance or 

emergency repair work inv.olving break-down, protection of life, 

plant or tank cars or on emergencies occasioned by the necessity for 

the services of specially skilled employees which cannot be cared 

for by the employment of additional men, provided that in any 

case, one and one-half times the normal rate shall be paid for hours 

worked in excess of the maximum hours specified. 

The Code provides a minimum rate of pay of forty cents per hour 

for common labor and a minimum wage of fifteen dollars per week 

for any employee paid on a weekly basis, including office employees. 

(316) 
317 

The Code provides that on or before the effective date each employer who has not done so prior thereto shall make such equitable 

adjustment of rates of pay of employees receiving more than the 

minimum rates of pay as to maintain the existing differential in 

weekly earnings as of June 16, 1933. Howe"Ver, in no event shall 

hourly rates of pay be reduced. Further, all members of the Industry shall submit to the Code Authority reports covering all adjustments in rates of pay of employees since June 16, 1933, within four 

weeks after the effective date of this Code. 

The Code prohibits employment of persons under sixteen years 

of age, or under eighteen years of age on operations or occupations 

which are hazardous. Provisions are to be made for the safety and 

health of all employees and a report submitted to the Administrator 

within six months after the effective date of this Code. 

FAIR TRADE PRA.ariCES 

The business of the Industry consists of leasing tank cars to 

railroad shippers. It has grown up because: 

(1) Railroads never have assumed the responsibility of providing 

specific equipment for transportation of this type service, and 

(2) The Interstate Commerce Commission ne"Ver has imposed 

this requirement upon common carriers by rail. 

Industrial concerns have organized and provide such equipment, 

and railroads because of this rendered service (which leaves to them 

only the responsibility of moving the traffic and no part in maintaining or providing the equipment), in accordance with I.C.O. 

determination, pay to the owner-shipper a mileage allowance of 

1112¢ for each mile the car is hauled. 

The terms upon which equipment has been leased to individual 

shippers vary with the practice of individual companies. They are: 

(1) The small tank car lessors lease equipment on a trip basis 

and are paid per diem for the use of their equipment for the period 

which terminates with the end of the particular trip. 

(2) Other lessors lease on a rental basis for a period of time 

measured in terms of months. 

(3) Large lessors make leases to supply the entire requirements 

of the lessee covering a period of not less than one year and the 

lessee1 in turn, agrees that its entire tank car requirements shall be 

supplied by the lessor. 

The leading provisions as specified in the Code have the approval 

?I Ind~try :Members owning approximately 95% of the tank cars 

m serv1ce. 

Investigation of practices heretofore existing in the Industry 

indicate clearly the necessity for stabilizing rentals and preventing 

excessive refunds of mileage allowances, to the extent of violation of 

the Elkins Act. It is felt that no undue hardship on smaller units 

of the Industry will be occasioned hy the restrictwns provided, and 

that the Industry will become more stable, because of the staying of 

excessive and unfair competition. 

The Code provides that under emergency conditions the Coda 

Authority may cause to be established a rental minimum for tank 
818 

cars on each o£ the bases set :forth and such minimum shall not be 

more than the lowest reasonable cost of supplying tank cars as determined by the Code Authority, it giving due consideration to and 

taking into account all the proper cost :factors. The Administrator 

may approve, disapprove or modify the determinations of the Code 

Authority. 

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 rna tter : 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I o:f the National Industrial Re Jovery 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 tmder adequate governmental sanctions and supervision by 

eliminating unfair competitive practices, by promoting the fuhest 

possible utilization of the present productin~ capacity of industries, 

by avoiding undue restriction of production, by increasing the consunlption of industrial and agricultural products through Increasing 

J?Urchasing power, by reducing and relieving unemployment, by 

nnproving standards 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 complies in all respects with the pertinent provisions of said Title I 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 truly representative of the 

aforesaid Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

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

or 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. 

(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 

Code. 

For these reasons this Code ~as been approved. 

Respectfully, 

MAY 22, 1934. 

HuGHS. JoHNsoN, 

Ad1r~inistrator. 
CODE OF FAIR COMPETITION FOR TI-IE TANIC CAR 

SERVICE INDUSTRY 

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 Tank Car Service Industry, and 

its provisions shall be the standards of fair competition for such 

Industry, and shall be binding upon every member thereof. 

ARTICLE I-DEFINITIONS 

The term "Industry" as used herein means the Tank Car Service Industry and is defined as the leasing or supplying (except as 

to transactions between a parent company an l its ·wholly owned 

subsidiaries, or between wholly owned subsidiaries of the same 

parent company, and except by railroads and other common carriers) of tank cars (other than tank cars known as I. C. C. Specifications Nos. 105A, 106A, 107A, 108 and 108A) to others for the 

transportation or handling of liquid or other commodities. 

The term "Member of the Industry " as used herein includes, 

but without limitation, any individual, partnership, association, 

corporation or other form of enterprise engaged in the Industry, 

either as an employer or on his 'or it-5 own behalf. 

The term "Lessor" shall include every member of the Industry 

who leases or otherwise supplies, directly or indirectly tank cars to 

others. 

The term "Lessee" shall include all of those "\Yho use tanl,.. cars 

owned or operated by members of the Industry, except as herein 

otherwise provided. 

The term "Association" as used herein shall mean the Tank Car 

Service Association. 

The term "Lease" shall mean any arrangement whatsoever, 

whether loaning, leasing, assigning, or otherwise, under which tank 

cars are supplied by a Lessor to a Lessee. 

The term "Employee" as used herein includes any and all persons engaged in the Industry, however compensated, except a member of the Industry. 

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

such employee i-s compensated or employed. 

Th9 tenn "President" shall mean the President of the United 

States of America. 

The term "Act " and "Administrator " as used herein shall 

mean, respectively, Title I of the National Industrial Recovery 

Act and the Administrator for Industrial Recovery. 

The term "mileage allowance" shall mean the amounts paid by 

carriers for mileage on tank cars of private ownership, pursuant to 

the terms of the currently effective tariffs applicable thereto, filed 

with the Interstate Commerce Commission. 

(319) 
820 

ARTIOLE II-HOURS 

(a) No employee sha.ll be permitted to work in excess of forty 

(40) hours in any one week or eight (8) hours in any twenty-four 

(24) hour period except as herein otherwise provided. 

(b) Service employees such as watchmen, first aid att~mdants 

janitors, switching crews or power plant employees may be employed 

not in excess of forty-four ( 44) hours per week and eight (8) hours 

shall be the normal working day. 

(c) No person employed in clerical or office work shall be permitted to work in excess of forty ( 40) hours per week. A normal work 

day shall not exceed eight (8) hours. 

(d) The provisions of this Article shall not apply to traveling and 

sales employees or to persons employed in a managerial or executive 

capacity, plant superintendents, shop foremen and car inspectors 

receiving not less than thirty-five dollars ( $35.00) per week; provided, however, that the limitations of paragraphs (a) and (b) shall 

not apply to any employee on emergency maintenance or emergency 

repair work, involving breakdowns or protection of life, plant or 

tank cars, or on emergencies occasioned by the necessity for services 

of specially skilled employees which can not be cared for by the employment of additional men, but in any such special case at least one 

and one-half (llh) times the normal rate shall be paid for hours 

worked in excess of the maximum provided in paragraphs (a) and 

(b) above. 

No employer shall knowingly permit any employee to work for 

any time which, when totaled with that already performed for 

another employer or employers, exceeds the maximum permitted 

herein. 

No employee shall be permitted to work more than six ( 6) days 

in any seven (7) day period. 

ARTICLE III-WAGES 

(a) No employee shall be paid less than at the rate of 40 cents 

per hour, provided, however, that the minimum wage that shall be 

paid by any employer to any employee paid on a weekly basis, including office employees, shall not be less than at the rate. of $15.00 

per week. 

(b) The rates specified shall apply whether calculated on an 

hourly, daily, weekly, monthly, piecework or other basis. 

(c) On or before the effective. date hereof, each employer, who has 

not done so prior thereto, shall make such equitable adjustment of 

rates of pay of employees reQeiving more than the minimum rates 

of pay as will maintain the existing differential in weekly earnings 

as of June 16, 1933, provided, however, that in no event shall hourly 

rates of pay be reduced. 

(d) All members of the Industry shall submit in detail a report 

to the Code Authority through the Secretary of the Association 

covering .all adjustments in rates of pay of employees since June 16, 

1933z within four ( 4) weeks after the effective date of this Code. 

(e) A person whose earning capacity is lilnited because of age 

physical or mental handicap, or other infirmity, may be employ~ 
321 

' 

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 S tutes Department of Labor, a certificate authorizinl1' 

such person's employment at such wages and for such hours as shafi 

be stated in the certificate. Each employer shall file monthly with 

the Code Authority a list o:f all such persons employed by him, show-· 

ing the wages paid to, and the maximum hours of work for such:' 

employee. 

ARTIGLE IV-GENERAL LABOR PROVISIONS 

SECTION 1. 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. The Code Authority shall 

submit to the Adn1inistrator, on or before sixty ( 60) days after the 

effective date of this Code, a list of such operations or occupations. 

In any State an employer 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. 

SEcTION 2. (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 agents in the designation of such representatives, or in self-o;rganization 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. 

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

minimun1 rates of pay, and other conditions of employment approved 

or _prescribed by the President. 

SECTION 3. No employer shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge for the 

purpose of defeating the provisions of the Act or of this Code. 

SEGTION 4. E very employer shall provide for the safety and health 

of his employees at the place and during the hours of their employ- ment. Standards for safety and health shall be submitted by the 

Code Authority to the Adn1inistrator within six (6) months after 

the effective date of this Code. 

SEGTION 5. No provisions in this Code shall supersede any State 

or Federal law which in1poses more stringent requirements as to 

age of employees, wages, hours of work, or as to safety, health, sanitary, or general workin~ conditions, or insurance or fire protection, 

than are imposed by thiS Code. 

SECTION 6. No employee shall be dismissed by reason of making 

a complaint or giving evidence with respect to a violation of this 

Code. 

SECTioN 7. All employers shall post and keep posted copies of 

wage, hour and labor provisions and of the definitions applicable 

thereto in this Code in conspicuous places accessible to all employees. 
322 

Every 1nember of the industry shall comply with all rules and 

regulations relative to the posting of provisions of Codes of Fair 

Competition which may from time to time be prescribed by the 

Administrator. 

AR'riCLE V-CooE AUTHORITY 

SEcTioN 1. A Code Authority is hereby constituted to cooperate 

with the Administrator in the administration of this Code. 

SECTION 2. The Code Authority, whose members shall serve one 

year and until their respectiYe successors are elected or appointed, 

shall consist of (a) five persons (who shall respectively be representatives of five different members of the Association) elected by 

the Association, voting by tank cars, so that, in the election of such 

five persons, each member of said Association shall have as many 

votes as the number of tank cars owned by it; (b) two additional 

persons elected by the Association, voting by individuals, so that, in 

the election of such two persons, each member of the Association 

shall have one vote, and no person shall be elected as one of said two 

members of the Code Authority unless he shall have received the 

vote of a majority of the members of the Association votin~ in such 

election; (c) one person elected by the members of the Industry, if 

any, who are not members of the Association, and, in default of such 

election for thirty ( 30) days after the effective date of this Code, 

the Association shall appoint, as such member, subject to the approval of the Administrator, an officer of one of the members of 

the Industry (if any) not a member of the Association; (d) one 

n1ember at large who shall be the then president of the Association; 

(e) not more than three persons appointed by the Administrator, but 

the said member or members so appointed shall have no vote, and 

shall serve without expense to the Industry. 

In any election of members of the Code Authority any member of 

the Industry owning all the stock or having the ent1re equitable 

interest in a subsidiary or subsidiaries engaged in the Industry 

shall, together with such subsidiary or subsidiaries, be considered 

as and entitled to the rights of only one member of the Industry. 

No two members of the Code Authority, elected as hereinabove 

in Clauses (a), (b) and (c) provided, shall be officers of, employed 

by, or representative of the same member of the Industry. 

Any vacancy in the Code Authority shall be filled by unanimous 

vote of the remaining members of the Code Authority at a meeting 

regularly called and the member so chosen must be a non-member 

of the then constituted Code Authority who shall serve until the 

expiration of the term of the member whose office became vacant. 

The Code Authority shall ser:ve reasona~le notice on all members 

thereof of all meetings of the Code Authonty. 

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

be truly representative of the Industryi and in other respects comply with the provisions of the Act, t 1e Administrator may frescribe such hearings as he may deem proper; and thereafter, i he 

shall fina 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 the selection of the Code Authority. 
323 

SECTION 4. Nothing contained in tbis Code shall constitute the 

members of the Code Authority partners for any purpose; nor shall 

any member of the Code Authority be liable in any manner to anyone for any act of any other member, officer, agent, or employee of 

the Code Authority ; nor shall any member of the Code Authority 

exercising reasonable diligence in the conduct of his duties hereunder, be lj able to anyone :for any action or omission to act under 

this Code, except for his own willful misfeasance or non-reasance. 

SECTION 5. Subject to the right of the Administrator, on review, 

to disapprove any action taken by the Code Authority, the Code 

Authority shall, in g,ddition to powers and duties otherwise provided in this Code, have the following powers and duties pertaining 

to the administration of this Code : 

(a) To adopt rules and regulations for its procedure. 

(b) To receive complaints of violations of this Code, except 

labor complaints and disputes, make investigations thereof and 

bring to the attention of the Administrator for prosecution, recommendations and in£ormation relative to unadjusted violations. 

(c) To coordinate the administration of this Code with such other 

Codes, if any, as may be related to the Industry, or any subdivision 

thereof, and to delegate to any other administrative authority, with 

the approval of the Administrator, such powers as will promote 

joint and harmonious action upon matters of common interest. (d) To consider and make recommendations for the modification 

of or an amendment to this Code. 

(e) To obtain from members of the Industry such information 

and reports as are required for the administration of the Code and 

to provide for submission by members of such information and reports as the Administrator may deem necessary for the purposes recited in Section 3 (a) of the Act, which information and reports 

shall be submitted by members to such administrative or government 

agencies as the Administrator may designate; provided, that nothing 

in this 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 any other party except to such goYernmental agencies as 

may be djrected by the Administrator. (f) To use such trade associations ::1nd other agencies as it deems 

proper for the carrJing out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority 

of its duties or responsibilities under this Code and that such trade 

associations and agencies shall ~t all times be subject to and comply" 

with the provisions hereof. 

SEcTION 6. If the Administrator shall determine that any action 

of a Code Authority, or any agency thereof, may be unfair or unjust 

or contrary to the public interest, the Administrator may require 

that such action be suspended, to afford an opportunity for investigation of the merits of such action and further consideration by such 

Code Authority or agency pending final action, which shall not be 

effective unless the Administrator approves, or unless he shall fail 

to disapprove, after thirty (30) days' notice to him of intention to 

proceed with such action in its origmal or modified form. 
324 

SEOTION 7. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authonty shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copies of its articles of 

association, by-laws, regulations, and any amendments when made 

thereto, together with such other information as to membership, 

organization, and activities as the Administrator n1ay deem necessary to effectuate the purposes of the Act. 

SECTION 8. (1) It being found necessary to support the Administration of this Code, in order to effectuate the policy of the Act and 

to maintain the standards of fair competition established hereunder, 

the Code Authority is authorized: 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes and to meet such obligations out 

of funds which shall be held in trust for the purposes of the Code 

and raised as hereinafter provided ; 

(b) To submit to the Administrator for his approval, subject to 

sucl1 notice and opportunity to be heard as he may deem necessary: 

1. An itemized budget of its estimated expenses for the foregoing 

purposes; and 

2. An equitable basis upon which the funds necessary to support 

such budget shall be contributed by all m.embers of the Industry 

entitled to the benefits accruing from the maintenance of such 

standards, and the administration thereof; 

(c) After such budget and basis of contribution have been approved by the Administrator, ~o determine and collect equitable 

contributions as above set forth, and to that end, if necessary, to 

institute legal proceedings therefor in its own name. 

(2) Each member of the Industry shall be liable for his or its 

equitable contribution to the expenses of the maintenance of the 

Code Authority as l1'ereinabove provided. Only members of the 

Industry complying with the Code and making such contribution 

shall be entitled to participate in the selection of the members of the 

Code Authority or to receive the benefits of its voluntary activities 

or to make use of any N.R.A. insignia. 

ARTICLE VI-LEASES 

(a) When the Code Authority determines that an emergency 

exists in this Industry and that the cause thereof is destructive 

price cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Code, the Code Authonty 

may cause to be established a Code minimum for tank cars on each 

of the bases hereinafter mentioned; and such minimum shall not be 

more than the lowest reasonable cost of supplying tank cars as 

determined by the Code Authority by giving due consideration to 

and taking into account all proper cost factors and providing a 

reasonable differential between rentals on bases 1 and 2 herein; 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 the emergency, it shall be an unfair trade practice for any 
325 

member of the Industry to supply tank cars below the Code minimum. \Vhen it appears that conditions have changed, the Code 

Authority, upon its own initiative or upon the request of any interested party, shall cause the determination to be reviewed. 

(b) No lessor shall make a.ny new lease or renew, revise, or extend 

any existing lease of tank cars, whether opern,ted under lessor's or 

lessee's reporting marks, without a stipulated charge or rental, 

and such new, renewed, revised, or extended lease shall be on any 

one of the bases provided in subsections 1, 2, or 3 of this section, 

and on no other basis. 

1. If the stipulated charge or rental is a stated amount of money 

per day: the lease shall be for a definite number of pecific size 

and type of cars; the lessor must receive and retain all mileage 

allowance; the lessor shall not permit the lessee to receive and 

retain any credit or refund on account of mileag-e allowance, except that the lessor may give a credit or refund on account of mileage allowance, earned during the period the lessor is actually charging the lessee rental, up t.o but not exceeding the amount of such 

rental, and the stipulated charge or rental shall be charged for 

every day from the date the car is made available by the lessor 

for loaning until the date the car is unloaded or released by the 

lessee, including both dates, and shall not be les than the Code 

minimum per day provided for in this Article VI. 

2. If the stipulated charge or· rental is a stated amount of money 

per month : the lease shall be for a definite term of not less than 

a month and for a definite number of specific size and type of cars; 

and the lessor shall not permit the lessee to receive and retain, 

any m_ilea.ge allowance or credit or refund on account of mileage 

allowance in excess of the stipulated charge or rental; and the 

les or shall receive and retain all mileage allowance in excess of said 

stipulated charge or rental; and the stipulated charge or rental 

shall commence not later than the date when the car is made available by the lessor for initial loading and shall continue until (on 

or afier the expiration of the lease) the car is unloaded and released 

by th-e lessee, and such stipulated charge or rental shall not be less 

than the Code minimum per month or portion thereof provided 

for in this Article VI. For the purpose of determining the excess 

of mileage allowance over the stipulated charge or rental, such 

mileao-e allowance hall be averaged over a period or periods of 

twelYe (12) months commencing with the date of the lease, or i£ 

the lease is for a horter period, shall be averaged over the term of 

the lease. 

3. If the stipulated charge or rental is not a stated u.mount o£ 

money: the lessor must contract to supply the entire requirements 

of the lessee for tank car equipment for a period of not less than 

one ( 1) year; the lessor must receive and retain all mileage allowance; the lessor shall not permit th-e lessee to receive or retain any 

credit or refund en account of mileage allowance; and the total 

amount of charge or rental received by lessor from lessee under such 

lease, plus mileage allowance, averaged annually shall not be less 

than the Code minimum per month or portion ther-eof provided 

for in this Article VI, for subsection 2 above. 
326 

(c) All rental charges shall be billed monthly, and shall be payable within sixty ( 60) days of billing, and no credit shall be extended by any lessor beyond said period of sixty ( 60) days. 

(d) This Code shall not apply to leases between a parent company and a wholly owned subsidiary, or between wholly owned 

subs]cliaries of the same parent company, but this section shall not 

in any other respect exempt such parent company or wholly owned 

subsidiary from the provisions of this Code. 

(e) Tank cars actually used by railroads in emergency cases to 

protect life and property shall not be subject to the provisions of 

this Article VI. 

(f) Leases under bases 2 and 3 of this Article VI shall be in 

writmg. Leases under basis 1 of this Article shall be made and 

the terms thereof defined before the car is loaded and shall, within 

twenty-four hours after the making of the lease, be confirmed in 

writing by the lessor, who shall make it a condition of the transaction that the lease shall be confirmed by the lessee within twentyfour hours after receipt by the lessee of confirmation from the 

lessor. 

ARTICLE VII-PARTICIPATION 

Participation in the selection of the Code Authority, and in the 

benefits of its activities2 and the N.R.A. insignia is governed by the 

provisions of Article V, Section 8; paragraph 2, hereof: 

ARTICLE VIII-REPORTS BY LESsons 

With a view to keeping the President and Administrator informed as to the observance or non-observance of this Code, and 

as to whether the Industry is taking appropriate steps to effectuate 

in all respects the declared policy of the Act, each lessor shall prepare and file with the Code Authority bi-monthly a sworn statement that such lessor has not, subsequent to the effective date 

her6of, made, renewed, revised or extended any lease at rates below 

the Code minimum for supplying such tank cars, established pursuant to the provisions of Article VI hereof. No such statement 

shall be disclosed to any other member of the Industry or any other 

party except to such Governmental agencies as may be directed by 

the Administrator. 

ARTICLE IX-l\1oNOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices or to eliminate, oppress, or discriminate 

against small enterprises. 

' 

ARTICLE X-UNFAIR TRADE PRACTICES 

The following shall constitute unfair trade practices and a violation of this Code: 

(a) Cutting rentals for tank cars below the Code minimum, as 

established pursuant to the provisions of Article VI, hereof, or 

quoting rentals below such minimum; 
827 

(b) Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or rewarding the 

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 ; 

(c) Purchasing or selling anything which any lessor may purchase 

from or sell to any lessee or prospective lessee at a price which, 

in effect would be equivalent to reducing the price of leasing tank 

cars below the Code minimum ; 

(d) Rendering any service, not customarily rendered, at less th an 

the cost of such service to the lessor; 

(e) Inducing, or attempting to induce, by any means, any party to 

a. eon tract with a lessor to violate such contract; 

(f) Making any installment sale of used tank cars where in any 

purehase installment is less in amount than at the rate of the Code 

minimum as established under the provisions of Article VI hereof 

or wherein the maintenance of cars is at the seller's expense; 

(g) Purchasing, selling, assigning, loaning, or exchanging, or 

engaging in any transaetion with reference to, any tank car for the 

purpose of evading this Code; 

(h) Paying the lessee more than the prevailing prices in the American Railway Association Code of Rules for Interchange of Freight 

Cars for any repairs made by lessee for lessor's account; 

(i) vVaiving any charge, or making any refund or allowance of 

any part of rental or mileage allowance which shall violate the provisions of Article VI, except that a pro rata refund or allowance on 

cars held for repairs for more than five ( 5) days after the day a car 

is placed in the shop for repairs may be made for any excess over 

five ( 5) days; 

(j) Painting or stenciling cars in excess of requirements in 

American Railway Association Specifications for Tank Cars when 

done by lessor for lessee for less than cost as such cost shall be established by the Code Authority; or making refund allowance to 

lessee for such painting or stenciling when done by lessee. 

(k) Furnishing or substituting any different size or type of t ank 

car than that specified and charged for in any lease except in cases 

of emergency, and in all such exceptional cases a :full explanation 

shall be immediately filed with the Code Authority through the 

Secretary of the Association; 

(l) Permitting the subletting o:f lessor's cars without the writt.en 

consent of lessor, or p~rmitting any arrangement for the purpose 

of evading the Car Demurrage Rules as published in tariffs lawfully 

filed from time to time with the Interstate Commerce Commission; 

(m) Leasing or supplying any tank car to a railroad except -for 

handling its own material, and then only if the arrangement with 

the railroad shall be evidenced in writing by an undertaking o.f the 

railroad not to permit the use of the car for any other purpose. 
328 111 111 111 ~n~~m~~ [fl~~~mll lll lll l 3 1262 08336 459 5 

ARTICLE XI-MoDIFICATION AND AMENDMENT 

(a) This Code and all the provisions thereof are exprQSsly made 

subject to the right of the President, in accordance with the provisions of Section 10 (b) of the Act, from time to time to cancel or 

modify any order, approval, license, or rule or regulation issued 

under Title I of said Act and spBcifically to the right of the President to cancel or modify his approval of this Code, or any condi~ 

tions imposed by him upon his approval thereof. 

(b) This Code except as to provisions required by the Ad, may 

be modified on the basis of experience or changes in circumstances. 

Such modification to be based upon application to the Administrator, 

and such notice and hearing as he shall specify, and to become effective on approval of the President; provided, howcYer, that after the 

effective date of this Code, no modification, amendment, or elimination of any provision thereof, nor any addition of any new provision 

thereto, shall be made (except by the President pursuant to the terms 

of the Act) unJess approved both by a majority of the members of 

the Tank Car Service Association and of the members of the Association representing. companies owning and operating a majority 

of the cars represented in the Association. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

· approval by the President. · 

AR'I'ICLE XIII 

The provisions of this Code shall be without prejudiee t o the 

exercise of any lawful jurisdiction or power of any lawfully constituted Federal or State regulatory body. 

Approved Code No. 439. 

Registry No. 1414-07. 

0