Registry No. 1149-08 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

" 

U.i. 

FOR THE 

MACHINERY AND TOOLS 

INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

WI DO OUR PART 

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The Code for the Machinery and Tools Industry 

in its~ present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the «pproval of 

the National Recovery Adminfstration 

as applying to this industry { 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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For sale by the SupE'rintendent of Documents, Washington, D.C. - - - - - - - - P ric«.> 5 cen ts 
SuBMITTED BY 

AMERICAN MACHINERY AND TOOLS INSTITUTill 

(II) 
PROPOSED CODE OF FAIR COMPETITION FOR THE 

MACHINERY AND TOOLS INDUSTRY 

ARTICLE I-PURPOSE 

This Code is set up for the purpose of increasing employment, 

establishing fair and adequate wages, effecting necessary reduction 

of hours, improving standards of labor, and eliminating unfair trade 

practices (etc.) to the end of rehabilitating the machinery and tools 

industry and enabling it to do its part toward establishing that 

balance of industries which is necessary to the restoration and 

maintenance of the highest practical degree of public welfare. 

It is the declared purpose of the machinery and tools industry 

and adherents to this Code to bring, insofar as may be practicable, 

the rates of wages paid within the machinery and tools indu try 

to such levels as are necessary for the creation and maintenance of 

the highest practicable standard of living ; to restore the income of 

enterprises within the industry to levels which will make possible 

the payment of such wages and avoid the further depletion and 

destruction of capital assets; and from time to time to revise the 

rates of wages in such manner as will currently reflect the equitable 

adjustment to variations in the cost of living. 

ARTICLE II-P .ARTICIPATION 

Participation in this Code, and any subsequent revision of or addition to the Code, shall be extended to any person, partnership, 

or corporation in the machinery and tools industry who accepts his 

share of the cost and responsibility, as well as the benefit, of such 

participation by becoming a member of the American Machinery 

and Tools Institute or any affiliated organization or by signing this 

Code. No initiation or entrance fees shall be charged, but there 

shall be dues levied as per the bylaws of the Institute and, or as, at 

least two thirds of the signers of this Code elect. 

ARTICLE III-DEFINITIONS 

1. The machinery and tools industry is defined to include the 

design, manufacture, distribution, or operation of machinery and 

tools. 

2. The term "member of the industry" means and includes any 

individual, either as an employer or employee, firm, or corporation 

engaged in work related to the design, manufacture, distribution, or 

operation of machinery or tools. 

3. A machine shop is hereby defined to be a workshop in which 

machines are made or metal parts thereof are repaired, or where 

parts of maGhines, or tools, implements, gears, dies, screws, or any 

other metal articles are cut, filed, shaped, or repaired by means of 

a lathe or other machinery. 

9932-33 (1) 
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4. The effective date a · u. eel here i lefined a the eleventh day 

after thi Code shall have been approve l by the Pre ident of the 

United State . 

5. The term employer ' shall mean all indi' iduals, firms, or 

corporation who employ labor in the conduct of any branch of 

the machinery and tool indu try a defined above. 

6. The term ' employ ' hall mean all per on employed in the 

conduct of any branch of the machinery and tools industry as 

defined above. 

7. The term "executive" hall mean any per on who ha upervi ion of workers in the machinery and tools industry. 

8. The term "designer" shall mean any person who has had the 

educational training and practical experience to qualify him to be 

recognized by employers and his coworkers as such. 

9. The term "tool and diemaker" shall mean any person who 

has the practical experience and ability as recognized by employers 

and coworkers to produce tool and die . 

10. The term "all round machinist' shall mean any person who 

can make necessary mechanical calculation and et up and operate 

any machine in a machine shop. 

11. The term " machine hand ' ·hall mean any person who has 

pecialized in the setting up and operating of any one or more of 

the different machines in a machine shop. 

12. The tenn "semiskilled worker ' hall mean any person who 

can operate punch presses, tapping machine , milling machines or 

any of the other machines in a machine hop after the machine has 

been set up for repetitive production. 

13. The term" un killed worker' or" common laborer" shall mean 

helper , trucker, etc. 

14. The term " apprentice' or ' learner " i a young person over 

16 years of age who has contracted with an employer to work for a 

definite length of time at a small compensation in return for instruction in an art or trade. 

15. The term "draft man'' shall mean any person who has the 

educational training and practical experience to be recognized by 

employer and his coworker as uch. 

ARTICLE IV- ADMINISTRATION 

Under ection 2 A of Title 1 of the National Recovery Act to 

further effectuate it policie , the Board of Director of the An1erican :Machinery and Tools In titute, the applicant herein, or such 

committee as may hereafter be con tituted by the action of the 

American ~1achinery and Tool Institute i set up to cooperate with 

the Admini trator and to admini ter thi Code for the machinery 

and tool industry. The Board of Directors may from time to time 

present to the Admini trator or the Pre ident recommendations 

based on conditions in the indu. try as they may develop from time 

to time which will tend to effectuate the operation of the provisions 

of thi Code and the policy of the National Incln trial Recovery Act. 
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ARTICLE V-LABOR 

In the :formulation of the labor code of the machinery and tools 

industry the following general considerations are deemed basic and 

:fundamental: 

1. That it is desirable to raise the general level of wages to that 

of the 1926 level, computed on the basis of a weekly wage. 

2. That it is desirable that the wage levels rise in advance of the 

rise of the cost of living, whereas the trend of wages lags behind 

the ri ing cost of living. 

3. That the general wage level required adjustment with the cost 

of living index, and that it be adjusted to the region and locality in 

which it is operative. 

4. That exi ting wage-rate differentials established by custom 

within the machinery and tools indu try and between that industry 

and other are not equitable, and should be adjusted. 

5. In the setting up of equitable differentials within the machinery 

and tool industry, the rates should be based on a scientific evaluation of skill, experience, risk, physical exertion, and responsibility. 

6. The wages in the machinery and tools industry are broadly 

classified under the designations, common or unskilled labor, semiskilled and skilled. 

7. That the Board of Directors of the American Machinery and 

Tools Institute be empowered to set up equitable differentials within 

the indu try and to represent the industry in the equalizing of rates 

between the machinery and tools industry and other industries. 

8. The machinery and tools industry is opposed to the principle of 

paying labor on contract. Contract is defined as the payment of a 

piece rate without consideration of a n1inimum wage. The above 

principle is not intended to include the payment of equitable piece 

rates or premium and bonus payments in exce of the minimum 

wage. 

9. Employees in the machinery and tool industry shalJ have the 

right to organize and bargain collectively through repre entatives 

of their own choosing, and hall be free from the interference, 

restraint, or coercion of employers of labor, or their agents, in the 

designation of such representative or in self-organizations or in 

other concerted activities for the purpose of collective bargaining or 

other mutual aid or protection. 

10. No employee in the machinery and tools industry, and no one 

,seeking employment therein, shall be required as a condition of employment to join any company union or to refrain from joining a 

labor organization of his own choosing. 

11. Employers of labor in the machinery and tools indu try agree 

to comply with the maximum hours of labor, minimum rates of pay, 

and other working conditions approved or prescribed by the President. 

12. The maximum hour for each class of labor shall not exceed 40 

hours per week with the exception of maintenance help and emergency workers who may work 48 hours in one week but hi time 

shall not exceed an average of 40 hours per week for any period of 

six months. 
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13. Members of the machinery and tools industry shall not employ 

in or about their pl'ants or shops any person under 16 years of age. 

14. Apprentices or learners shall be paid: 1 t year-15¢ per hour; 

2nd year-25¢ per hour; 3rd year-80% of the minimum wage, and 

shall be kept on production work for short periods only in order to 

become proficient in that particular kind of work. 

15. The n1inimum rates of pay per hour shall be as follows for the 

following classifications : 

Common or unskilled labor_ ______ __ ______________________ $0. 40 

Semiskilled labor___ __ ____ ______ ______ ___________________ . 45 

Skilled labor: 

1\lachine hands------~--------------------------------- .60 

Draftsmen and a ll round machinist -------------------- . 75 

Tool and diemakers____________________________________ . 85 

Designers ______________________________________________ 1.00 

ARTICLE VI-PRODUCTION AND STATISTICS 

It is the consensus of opinion of the applicants for this code that, 

owing to the varied products manufactured by members of the machinery and tools industry and owing to the adoption of codes by 

manufacturers of specific products and owing to the production of 

all members of the industry falling under two general classifications, 

new work and service work for replacement parts or maintenance, it 

is not necessary in order to effectuate the policy of Title 1 of the 

National Industrial Recovery Act to make specific provision for controlling or regulating the volume of production in the industry other 

than that machinery hours shall not be more than 80 in any one 

week, except on service work in emergency cases in which event the 

hours worked shall be unlimited. 

Provisions shall be made for the collection of statistics regarding 

production or sales and other data in order to inform the President 

or the Administrator that the policy of Title 1 of the Act is being 

complied with. It is therefore recommended that adequate records 

be kept by the employer members of the machinery and tools industry in order that statistics on the conduct of their business in general 

so that periodic reports can be furnished the Board of Directors and 

statistics compiled which will serve to show that the provisions in 

this Code are being adhered to. 

ARTICLE VII-UNFAIR PRACTICES 

For all purposes of the Code the following described acts shall 

constitute unfair practices : 

1. Estimating or selling below cost as defined by a representative 

committee of the members of this Code. 

2. Making or promising to any purchaser or prospective purcha::;er 

of any product, or to any officer, employee, agent, or representative 

or any such purchaser or prospective purchaser, any bribe, gratuity, 

gift, or other payment or remuneration, directly or indirectly. 

3. Procuring, otherwise than with the consent of any member of 

the Code, any information concerning the business of such member 

which i properly regarded by it a a trade secret or confidential 
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within its organization, other than information relating to a violation of any provision of the Code. 

4. Imitating or simulating any design, style, mark, or brand used 

by any other member of the Code. 

5. Cancelling in whole or in part, or permitting the cancellation 

in whole or in part of any contract of sale of any product, except 

for a fair consideration, or paying or allowing to any purchaser in 

connection with the sale of any product any rebate, commission, 

credit, discount, adjustment, or similar concession other than as is 

permitted by the Code and specified in the contract of sale. 

6. Disseminating, publishing, or circulating any false or misleading information relative to any product or price for any product or 

any member of the Code, or the credit standing or ability of any 

member thereof to perform any work or manufacture or produce any 

product, or to the conditions of employment among the employees of 

any member thereof. 

7. Making or giving to any purchaser of any product any guaranty or protection in any form against decline in the market price 

of such product. · 

8. Stating in the invoice of any product as the date thereof a date 

later than the date of the shipment of such product, or including 

in any invoice any product shipped on a date earlier than the date 

of such invoice. 

9. Rendering to any prurchaser of any product in or in connection 

with the sale of such product any service, unless fair compensation 

for such service shall be paid by such purchaser. 

10. Any violation of any other provision of the Code, whether or 

not therein expressed to be such, or using or employing any practice 

not hereinabove in this List of Unfair Practices described which the 

Board of Directors by the affirmative vote of three fourths of the 

whole Board shall have declared to be a practice. that would tend to 

defeat the policy of Title 1 of the National Industrial Recovery Act 

and, therefore, an unfair practice, and of which determination by 

such Board the Secretary shall have given notice to the members 

of the Code and to the President. 

11. Lowering established piece rates without changing method of 

production. 

12. Employing persons as undercover operators to secure information regarding processes, workers, or management either by employers 

in their own plant or competitors' plants. 

13. Advertising for employees without specifically stating in the 

advertisement the terms of employment and the name of the 

advertiser. 

14. ~~e paying of executives less wages than those under their 

su perv1s1 on. 

15. Causing executives to work longer than the regular time period 

without paying them additional compensation therefor. 

T he above unfair practices and all such other practices which 

shall be declared to be. unfair practices by the Board of Directors 

as provided in paragraph 10, or by any amendment to the Code 

adopted and at the time in effect shall be deemed to be unfair 

methods of competition within the meaning of the Federal Trade 
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Commi sion Act as amended, and the u ing or employing of them 

shall be deemed to be a violation o£ the Code, and any member 

o£ the Industry which shall directly or indirectly knowingly use 

or employ any o£ such unfair practice shall be guilty o£ a violation 

of the Code. 

ARTICLE VIII -VIOLATIONS 

Violation by any member o£ the industry subject to the provi ions 

of this Code of any provision o£ this Code, or any ubsequent provision or rule thereto, hall be subject to the penalties impo ed by 

the National Industrial Recovery Act. 

ARTICLE IX-ESTIMATING AND CoNDITIONs OF SALE 

In making estimates and terms o£ sale members of the industry 

hall abide by the following: 

1. Quotations submitted shall not be changed under any condition. 

2. Each quotation submitted shall include a fair and rea onable 

profit. 

3. Wherein an estimate covers several units, a separate quotation 

for each unit shall be submitted. 

4. Terms of sale shall be F.O.B. shipping point. 

5. All quotations shall be ubject to the approval of the home 

office. 

6. Orders placed cannot be cancelled or deliveries held up except 

with seller's con ent and upon terms which will indemnify him 

again t all loss. 

7. All quotations are based on customer accepting overrun or 

underruns, not exceeding 10% of quantity ordered, to be paid for 

or allowed pro rata. 

8. Every effort will be made to fill order within the time promised, 

but under no circumstances will the seller assume the responsibility 

for any damage growing out o£ or owing to any delay over which 

the eller has no control. Unles pecifically stated to the contrary, 

quotations are made and orders are accepted for delivery a fast as 

manufactured, by partial shipment. 

9. The seller will submit amples i£ requested for approval when 

commencing operation upon any order but doe ~ o w"ith th undertanding that hi machines are to be run immediately after they are 

set correctly to customer' pecifications, and he will a ume re ponsibility for having the product in conformity with the original 

pecifications during the period necessary in which to obtain customer's approval. Any chano·e in pecification can be made only at 

cu tomer' direction and expen e. 

10. The buyer mu t notify the eller of any claim for d £ective 

material, or material not a ordered within 10 days from receipt 

o£ hipment. I£ such claim is sustained and material furni hed i 

proved defective to satisfaction o£ both partie , the eller hall have 

the option in uch an event of taking back th goo l and d cidino· 

whether he hall repair, replace, or credit, but under no circum tancs 

will he allow or be liable :for damaae , or any claim for expense involved in u ing his product. Claims for hortage must be made 
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within ten days from receipt of the goods, and in every case the 

weights found in the shipment must be given, and also the method 

used in arriving at a count of the parts. 

11. All dimensions must be limited by a specified tolerance. When 

not specified by a customer it is understood that commercial tolerances apply and that the work will be manufactured in the most 

economical manner. 

12. Gauges are not included in estimated price unless especially 

stated. Where tolerances are closer than commercial limits or when 

dimensions cannot be readily gauged with micrometers, ·customer 

will be expected to furnish manufacturing gauges. Such gauges can 

be supplied by a seller at an extra charge. The seller does not guarantee fits of any kind except where gauges are supplied. In specifying fits to gauges, it is advisable to mention whether wrench, finger, 

or commercial (free) fit is desired. 

13. Quotations do not include 100% inspection unless especially 

stipulated. Although it is the intention to charge for only good 

work without a 100% inspection, delivery in this way cannot be 

guaranteed. It is therefore understood that such individual inspection will be .made by the customer at his expense and that only 

parts which have been proved defective by customer's individual 

inspection will be returned with a claim for credit or replacement 

at seller's option. 

14. Charges for special tools to perform the service, or manufacture the product, do not convey ownership or the righ~ to remove 

them from the seller's factory. 

15. Seller i not responsible for drawings, samples, models, or 

gauges uncalled for within 30 days after execution of any order or 

quotation. 

16. In ordering, the customer should state explicitly the method 

of shipment preferred and, in the absence of shipping directions, 

the seller will use discretion, forwarding by express or parcel post 

when packages are small and therefore liable to be lost in transit by 

freight. The seller assumes no responsibility for placing of valuations upon hi pments unless specifically requested to do so by the 

customer. 

17. Quotations covering the machining of buyer's material are subject to charge if material furnished will not machine at speed and 

feed estimated. \Vben the material is furnished by the buyer, the 

seller cannot guarantee to furnish more than 90% of the amount 

of the order and should be allowed a .margin of 10% for possible 

spoilage of material. 

18. Parts are made by the seller strictly to dimensional specifications furnished by buyer. It is understood that seller is not to be 

held accountable for damages from infringement of letters patent 

by the use or sale of parts made by him either as such or as parts 

or units of complete entities. 

Any violation of the above shall be deemed a violation of this 

Code. 

ARTICLE X-AMENDMENTS 

1. Pur uant to subsection (b) of Section 10 of theN ational Industrial Recovery Act, the President may from time to time cancel or 
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n1odi:fy any order, approval, license, rule, or regulation issued under 

Title 1 of theN ational Industrial Recovery Act. 

2. All amendments shall be proposed by the Board of Directors 

of the American Machinery and Tools In~ titute by a vote of the 

majority of the members thereof. Each amendment so proposed 

shall be submitted to the n1ember of the Code which shall be called 

for such purpose. If at such meeting two thirds of the members 

vote in favor of such amendment, such amendment shall be submitted 

by the Board of Directors to the President, or Administrator for approval, if approval thereof shall then be required by law, every such 

amendment. shall take effect as a part of the Code upon the adoption 

thereof by the members of the Code and the approval of the President if approval thereof by him shall be required. 

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UNIV ER SITY OF FLO RIDA 

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