Registry No. 1829-l-01 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR TH-E 

SHOVEL, DRAGEINE 

AND CRANE INDUSTRY 

AS APPROVED ON NOVEMBER 8, 1933 

BY 

PRESIDENT ROOSEVEL'r 

• 

WI DO OUR PART 

Jl~U;!.-.~-!!_!:p~oM::IT;.:O::..:--__.~ ~ 1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale lity the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

a nd Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, 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 : Chjtmber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind.: Chamber of Commerce Building. 

J acksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo. : 1028 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 Ea t Plume Street. 

Pl1ilaclelphia, Pa. : 933 Commercial 'l'rust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post O:ffi e Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Building. 

(II) 
EXECUTIVE ORDER 

ConE OF FAIR CoMPETITION FOR THE SHoVEL, DRAGLINE AND CRANE 

INDUSTRY 

An application having been duly made, 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 Shovel, Dragline and Crane Industry, and 

hearings having been held thereon and the Administrator having~ 

rendered his report containing an analysis of the said Code of Fair 

Competition together 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 8 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, 

n.nd findings of the Administrator and do order that the said Code 

of Fair Competition be and it is hereby approved. 

THE WHITE HousE, 

November 8, 1933. 

Approval recommended: 

HuGH S. JoHNSoN, 

FRANKLIN D. ROOSEVELT. 

A dminist1·ator. 

(Ill) 

19901"----188-183----33 
NOVEMBER 4, 1933. 

The PRESIDENT, 

The White H OUS6. 

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

Shovel, Dragline, and Crane Manufacturing Industry, the hearing 

having been held in vVashington September 29, 1933, in accordance 

with the provisions of the National Industrial Recovery Act. 

PROVISIONS ON HOURS AND WAGES 

Factory employees will be limited to 40 hours per week and 8 hours 

per day1 except during peak periods, when they may work 44 hourg 

per week, in not more than 8 weeks in any 6 months. Time and one 

half will be paid to employees working in excess of 8 hours per day, 

or 40 hours per week. 

A tolerance of 10 percent over the minimum hours prescribed will 

be permitted for those engaged in preparation and maintenance 

work, or as shipping clerks. The above limitations in hours do not 

apply to service men, traveling salesmen1 or to employees in a managerial, executive, or supervisory capacity who receive more than 

$35.00 per week, nor to those on emergency maintenance and emergency repair work, the latter class being paid time and one half for 

all hours worked in excess of 8 hours per day or 40 hours per week. 

The minimum wage for factory employees engaged in manufacturing operations will not be less than 40 cents per hour. No distinction in wage rates will be made between m.ale and female 

employees. Adjustment of wage rates above the minimum provided 

will be made and will be reported to the Code Authority. 

A maximum of 40 hours per week is provided for employees 

engaged in accounting1 clerical, service, and S'ale ~ work, and the 

minimum wage will be 1n accordance with the President's Reemployment Agreement. Salaries now higher than the above minimums will 

not be reduced because of a change in hours provided in the Code. 

Office boys, messengersl and old and infirm employees will receive not 

le than 80 percent ot the minimum wage, and the number of such 

employees, together with apprentices, will not be more than 5 percent 

of the total number of employees of any employer. 

CHIW LABOR 

The minimum age will be 16 years and no person under 18 years 

will be employed in other than office work. 

ECONOMIO EFFECTS OF THE CODE 

Thi~ Industry manufactures power-operated shovels, draglines, 

locomotive cranes, and the like, the product being largely u ed for 

(IV) 
v 

excavating on public-works projects and in the building industry, 

The 80 companies employed 14,440 persons in 1929, but this number 

was reduced to an average of 4,100 during the low period of the first 

half of the year 1933. Since the application of the 40-hour week 

employment has been increased approximately 20 percent. 

The increased wage scale under the provisions of this Cude is 

expected to add 15 percent to the pay rolls of the Indnstry at its 

present rate of operation. The annual sales of the products of the 

Industry have dropped from $77,800,000 in 1930 to $:1:,833,000 for 

the first six months of 1933, and the Industry is now operating at 

only 12 percent of capacity. In working out and accepting its Code, 

this Industry has shown a spirit of cooperation with the purposes 

of the Act. 

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 

Shovel, Dragline, and Crane Industry; and that 

(c) The Code as recommended is not desi~ed to promote monopolies or to eliminate or oppress small enterpnses and will not operate 

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

of Title I of the National Industrial Recovery Act. 

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

Respectfully, 

HuoH S. JoHNSoN, 

Admini8trator. 

CODE OF FAIR COMPETITION FOR THE SHOVEL, 

DRAGLINE, AND CRANE INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

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

Fair Competition for the Shovel, Dragline, and Crane Industry, and 

upon approval by the President, shall be the standard of fair competition for this Industry. 

ARTICLE II-DEFINITIONS 

The following words are used in this Code with the meanings set 

forth below : 

"Industry "-the manufacture for sale, and the sale by the manufacturer, of power-operated convertible sho,vels and draglines and 

special modifications thereof, such as cranes equipped for clamshell 

or lifting service, back-dig~ing trench hoes, skimmers, autotruck 

cranes, and the like, all haVIng a nominal rating of one third (lh) 

cubic yard capacity and moreh and full revolving locomotive cranes 

having a nominal rating of t ree (3) toos capacity and more, and 

special modifications of such machines embodying locomotive crane 

superstructure, all for use in the continental United States of America including Alaska, and the Territory of Hawaii. 

,z Employee "-any person engaged in the Industry in any capacity, 

receiving compensation for his services, irrespective of the nature 

or method of p,ayment oi such compensation. 

"Employer '-anyone for whose benefit such an employee is so 

engaged. 

"Member of the Industry "-anyone engaged in the Industry as 

above defined, either as an employer or on hi.s own behalf. · 

"Member of the Code "-any member of the Industry who shall 

expressly si~nif,Y assent to this Code. 

"Apprentice' -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. 

"President" "Act" and "Administrator "-respectively the Presi ~ ' ' - dent of the United States., the National Industrial Recovery Act, and 

the Administrator of Title I of said Act. 

"Institute "-Shovel, Dragline, and Crane Institute, a cooperative 

nonprofit Association, with its office in Chicago, Illinois. 

"Effective Date "-the second Monday after this Code has been 

approved by the President. 

Population for the purpose.s of this Code shall be determined by 

reference to the 1930 Federal Census. 

(1) 
2 

ARTICLE III-HoURs 

(a) No employee, except as hereinafter provided, shall be employed for more than forty ( 40) hours in any one week. 

(b) During any" peak period in which a concentrated demand 

upon any division of any member of the Industry shall place an 

unu ual and temporary production burden upon its facilities, employees of such division shall be permitted to work not more than 

forty-four ( 44) hours per week in not more than eight (8) weeks 

during each successive six (6) months' period beginning with the 

effective date of this Code. 

(c) Hourly rated employees engaged in the preparation, care, and 

maintenance of plant, machineryi and production facilities, firemen, 

stock and shipping clerks, and de ivery employees shall be permitted 

to work not more than forty-four (44) hours in any one week; and 

during peak periods, as described in paragraph (b) of this Article, 

such employees shall be permitted to work not more than fortyeight ( 48) hours per week in not more than eight (8) weeks during each successive six (6) months' period beginning with the effective date of this Code. 

(d) The limitations as to hours o:f labor shall not apply to watchmen, janitors, field-service men, employees engaged in emergency 

maintenance or emergency repair work, nor to very special cases 

where restriction of hours o:f highly skilled workers would unavoidably reduce or delay production. Watchmen and janitors shall not 

be employed more than fifty-six (56) hours in any one week. 

(e) Time and one half shall be paid hourly rated employees for 

overtime in excess of forty ( 40) hours in a.ny one week or eight (8) 

hours in any one day; except that in the case of employees covered 

by paragraph (c) of this Article III, time and one half shall be 

paid for overtime in excess of forty-four ( 44) hours in any one week 

or nine (9) hours in any one day. No overtime shall be paid hourly 

rated watchmen, janitors, or field-service men. 

(f) Salaried employees, except as hereinafter provided, shall not 

be employed for more than forty (40) hours in any one week; proYided, however, that any such employee may be permitted to work 

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

eight (8) weeks during each successive six (6) months' period 

beginning with the effective date of this Code. · 

(g) The limitations as to hours of labor shall not apply to outside 

salesmen; nor to persons in a managerial, supervisory or technical 

capacity receiving more than thirty-five dollars ($35.00) per week. 

One employee in each district sales office shall be permitted to work 

f orty-four ( 44) hours per week and one employee in each field service 

station shall be permitted to work forty-eight ( 48) hours per week. 

(h) No employee shall work or be permitted to work for a total 

number of hours in excess o:f the number of hours prescribed for 

each week and day, whether employed by one or more employers. 

ARTICLlll IV-WAGES 

(a) The minimum wage that shall be paid to any employee except 

salaried employees shall be not less than forty cents per hour; except 
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that the minimum wage that shall be paid any such employee engaged in nonproductive work, the number of such employees not to 

exceed ten ( 10) percent of the tot al number of hourly rated employees, shall be not less than thirty-five cents per hour. 

(b) All alaried employees covered by paragraph (f) of Article 

III shall be paid at not less than the following minimum rates in 

cities of the sizes li ted below and their immediate trade areas : 

Over ·500,000 population, $15.00 per week; 250,000 or over, but less 

than 500,000 population, $14.50 per week; under 250,000 population, 

$14.00 per week. 

(c) No employee of the classes covered by paragraph (f) of Article III now receiving compensation at a rate in excess of the minimum provided in paragraph (b) of this Article IV shall have his 

compensation reduced on account of any reduction in the weekly 

hour of employment made to conform with the requirements of 

paragraph (f) of Article III. 

(d) The minimum wage provided in paragraphs (a) and (b) of 

this Article IV shall not apply to apprentices; provided, however, 

that all existing and future apprentice contracts shall be submitted 

to the Code Authority and shall be subject to review of the 

Administrator. 

The minimum wage that shall be paid to learners or old employees 

who by reason of age or infirmities are limited in their productive 

capacity, shall not be less than eighty (80) percent of the applicable 

minimum wage provided in paragraph (a) of this Article IV; provided, however, that the total number of such learners and aged or 

infirm employees shall not exceed in number five ( 5) percent of the 

number of employees covered by said paragraph. 

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

and me sengers, to a number not to exceed five ( 5) percent of the 

number of employees co:rered b~ paragraph (b) of th~s .Article IV, 

shall not ·be le s than mghty (80) percent of the m1n1mum wage 

provided in said paragraph. 

(f) '\Vhere employees' weekly earnings on piecework divided by 

the number of hours worked produces a result less than the minimum 

wage stipulated in paragraph (a) of this Article IV, such earnings 

shall be so adjusted as to conform with the aforesJ:~.id minimum wage. 

(g) No distinction in rates shall be made based solely on the 

grounds of sex 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. 

(h) The hourly rates, base piecework rates, and salaries for all 

duties and occupations now paid at more than the minimum herein 

prescribed, but not including salaries of more than thirty-five 

dollars ($35.00) per week, shall be equitably adjusted by all members 

of the Industry who have not already done so, and in no case shall 

these rates be decreased. Reports concerning the action taken, 

whether prior to or after the date of approval of this Code, shall 

be reported to the Code Authority not later than ninety (90) days 

after the effective date, and to the Administrator upon his request. 

( i) No member of the Industry shall reclassify employees or 

duties of occupations performed by employees so as to defeat the 

purpo es of the Act. 
4 

(j) No person who has worked as a learner in the In~ustry fol' 

a period of three ( 3) months shall thereafter be classified as a 

learner. 

(k) This Article establishes minimum rates of payi regardless o:f 

whether the employee's compensation is based on a time rate or on 

a piecework performance or other basis. 

ARTICLE V - CHI LD 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 in other than office work. 

A RTICLE VI-ADM I N I STRATION 

SECTinN 1. To further effectuate the policies of the Act a Code 

Authority is hereby set up to cooperate with the Administrator in 

t he administr ation of this Code. (a) The Code Authority shall consist of the Executive Committee 

of the Institute, t ogether with one representative of members of the 

Industry who are not members of the Institute (providing they 

desire such representation, and signify their willingness to pay their 

pro rata share of the cost of administering this Code) ; and one or 

more appointees of the President if he so desires. The appointee or 

appointees of the President shall have no vote. The representative 

of the nonmembers shall be elected by the · nonmembers in any fair 

manner approved by the Administrator. 

(b) Any member of the Industry is eligible for membership in the 

Institute, and there shall be no inequitable restrictions on such 

membership. 

(c) Any member of the Industry may participate in the preparation of and any revision or additwns or supplements to this Code 

and in the Code activities of the Code Authority to the same extent 

as members of the Institute by assuming his pro rata share of the 

cost and responsibility of creating and administering it, either by 

becoming a member of the Institute and paying the annual dues and 

assessments of the Institute, or by paying to the Code Authority his 

equitable pro rata share of the costs as determined by the Code 

Authority7 subject to the approval of the Administrator. There shall 

be no initiation fee for members of the Industry who only become 

members of the Code and do not become members of the Institute. 

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

powers to the extent permitted by the Act and subject to the right of 

the Administrator, on review, to disapprove or modify any action 

taken by the Code Authority. 

(a) To collect from members of the Industry all data, reports, and 

statistics when and as required by the President andjor the Administrator andj or their agent or agents; also to collect such data, reports, 

and statistics as may be required from time to time by the Code 

Authority, subject to the approval of the Administrator. All such· information shall be confidential, except insofar as disclosure may 

be necessary for the effective administration and enforcement of this 

Code. Such data as may be requested by the Administrator shall be 
5 

made available tD him. Reports submitted by the Code Authority to 

the President or the Administrator shall be in such form as may be 

prescribed. 

In addition to information required to be submitted to the Code 

Authority, there shall be furnished to Government agencies such 

statistical information as the Administrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act. 

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

Industry reports regarding prices or prices and diseounts 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 proeedure 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 Act and any regulations issued thereunder. 

(d) To hear and investigate complaints and attempts to adjust the 

same in accordance with law. 

(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 stud:y the trade practice provisions of Article VII hereof, 

and the operatwn thereof, and make recommendations from time to 

time to the Administrator which it deems desirable for modification 

or addition thereto, which, upon the approval of the Administrator, 

after such hearing as may be prescribed, shall become a part of this 

Code and have full force and effect as provisions hereof. 

(g) To make reasonable rules and regulations necessary for the 

administration of this Code1 subject to the right of any affected 

person to appeal tD the Admmistrator. 

ARTICLE VII-TRADE PRACTICES 

The following trade practices shall be applicable to power-operated convertible shovels and draglines and special modificatwns 

thereof such as cranes equipped for clamshell or lifting service, 

back-digging trench-hoes, skimmers, auto truck-cranes, and the like, 

all having a nominal rating of from one third (Jis) up to, but not 

including, three (3) cubic yard capacity. Supplemental trade practice provisions shall hereafter be submitted applicable to other machines or attachments in the Industry. 

SECTION 1. Definitions.-The following words are used in this 

Article VII with the meanings set forth below: 

Machine or Attach'11U3nt.-A bare machine with or without traction mounting and with or without shovel, dragline, clamshell, crane, 

back-digging trench-hoe, skimmer, or other standard or special front 

end equipment; or such equipment sold separately; or auxiliary 

equipment, such as light plants, starters, air compressor equipment, 

and other accessories; or any combination of any of the foregoing; 

but not repair or spare parts for any of the foregoing. 

New 11/ achine or Attachment.-A machine or attachment which 

has not previously been sold and placed in the possession of the purchaser. 
6 

Used Machine or Attachment.-A machine or attachment which 

has previously been sold and placed in the possession of the purchaser. 

Shipment.-Any reference to the date of shipment shall refer to 

the date on which the transportation company issues a bill of lading 

for the shipment; or, in the case of delivery by other means than a 

transportation company, the date on which the shipment leaves the 

factory or place of storage. The withholding of a portion of a shipment shall not be considered as postponing the date of shipment. 

Oash.-Lawful money of the United States or immediately collectible check or equivalent instrument. 

Distributor.- Dealers, distributors, sales representatives, salesmen, 

sales agents and any other person authorized to sell or negotiate sales 

o£ new machines on behalf of a member of the Industry, except 

direct employees of the member of the Industry. 

SEc. 2. Vwlation of Trade Practice~ Oode.-Any deviation from 

the standards set forth in this Article VII, or any amendments 

thereto, by any member of the Industry, either directly or indirectly 

through a distributor, shall be considered an unfair method of competition and a violation of this Code by such member. 

SEc. 3. Publ·ication of Prices.-(a) Each member of the Industry 

shall independently publish his price lists, which shall include prices, 

shipp]n<Y weights, and terms of sale for all new standard machines 

or attachments, which prices shall be stated f.o.b. works. Publication shall include filing a complete copy with the Chairman of the 

Code Authority, or w1th such agency as the Code Authority may 

designate. All sales shall be made f.o.b. manufacturer's works, except that sales may be made on a delivered basis to points in Washington, Oregon, California, Nevada, Idaho~ Arizona, and Utah and 

c.i.f. or f.a.s. to Alaska and the Territory ot Hawaii. 

(b) Chan~es in or revisions of published price lists shall be published and tiled as above provided at least ten ( 10) days prior to 

the effective date of any such changes or revisions, and such changes 

or revisions shall be available for distribution to all members of the 

Industry and to the trade. The Code Authority shall cause a copy 

of such price lists and all changes or revisions to be promptly sent 

to all members of the Industr:y affected thereby. When any member of the Industry has so pubhshed and filed changes in or revisions 

of his published price lists, any other member of the Industry may 

so publish and file changes in or revisions of his published price 

lists, which, if filed prior to the date when the changes or r evisions 

first filed become effective2.-shall become effective upon that date. 

(c) No member of the lndustry hall seH or offer for sale any of 

his new standard machines or attachments at a price or prices lower 

or upon term more favorable than as stated in his current published 

price li ts filed as hereinbefore provided. 

SEc. 4. Prices of Machines with Special Fe(J)twres.-In the sale of a 

new machine or attachment involvmg features, equipment, attachments, or auxiliaries differing from the items included in the published price li t, the price of such machine or attachment shall be not 

le than a price established as fol'lows: 

(a) In the case of an increa e in cost, the listed price of the nearest 

standard machine or attachment, plus the estimated (or actual if 
7 

known) net additional cost, wei~hted by the same percentage of overhead as applied in fixinO' the original price. 

(b) In the case of a decrease in cost, the listed price of the nearest 

standard machine or attachment, less the estimated (or actual if 

known) net reduction in cost, weighted as above. 

SEc. 5. Firm Orders R eqwired.-N ew machines or attachments 

shall be sold only under firm sales contracts or firm purchase orders, 

and such contracts or orders shal'l provide for shipment within six 

( 6) months of the date the contract or order is signed by the purchaser. 

SEc. 6. Pay17U3nts in 0{])8h.-All payments on account of the purchase price of a new machine or attachment shall be made in cash as 

defined in Section I of this Article when due. 

SEc. 7. Down Paryment in Deferred-pG!lj17Wnt Sales.-In the sale 

of a new machine or attachment on deferred-payment terms, a cash 

down payment of not less than twenty-five percent (2'5%) of the 

total sales price shall be required and collected from the purchaser} 

either before the time of shipment and/or by sight draft with bil 

of lading attached. 

SEc. 8. Installments in Deferred-payment Sriles.-In the sale of a 

new machine or attachment on deferred-payment terms, the unpaid 

balance of the purchase price shall be made payable in equal monthly 

installments, or better, the first installment to be payable in not more 

than sixty (60) days from the date of shipment, the last installment 

to be payable in not more than fifteen (15) months from the date of 

shipment, all installments to be evidenced by notes bearing date of 

shipment. No in tallment note shall be extended or renewed in whole 

or in part, except for inability of the purchaser to make payment. 

SEc. 9. Inte1·est.-In the sale of a new machine or attachment on 

deferred-payment terms, the rate of interest on all unpaid portions 

of the purchase price shall be not less than six percent ( 6% ) per 

annum from the date of shipment, until paid. 

SEc. 10. Oash Discownt.-Cash discount terms on sales of new 

machines or attachments shall not exceed two percent (2%) :for 

cash within fifteen (15) days after shipment. 

SEc. 11. Net Oash Sales.-When sales of new machines or attachments are made on a net cash basis, and no cash discount is involved, 

full payment in cash must be made by the purchaser within thirty-five 

(35) days from the date of shipment. 

SEc. 12. Gua1·anty.-In the sale of a new machine or attachment, 

no guaranty shall be made except for materials and workmanshif and 

for conformity to specifications; provided that no ~aranty o materials or workmanship shall be made beyond claims presented in 

writing within six months after date of shipment. 

SEc. 13. No Discri1ninDJtion Between Purchasers.-In the sale of 

new m.achines or attachments no member of the Industry shall discriminate, either directly or indirectly, in the prices charged or 

terms allowed, or by any of the :following practices, and no member 

of the Industry shall engage in any of such practices:-

(a) Rentals.-Renting new machines or attachments. 

(b) Trials amd Demonstr(J)tions.-Selling a new machine or attachment subject to acceptance after a trial or demonstration on the 

purchaser's job; provided, that in the case of the first machine or 
8 

attachment of each distinctly new type or size, with new model 

designation, if no machine of the same type and size has previously 

been sold, the contract may include a stipulation permitting rescission 

f>f the contract by the customer within ninety (90) days from date o:f 

shivment. 

(c) Trade-ins.-Taking used machines or attachments, used equipment, or other property in trade on the purchase price of a new machine or attachment, or making an allowance or granting credit 

directly or indirectly therefor in any connection. 

(d) Rebates.-Paying or allowing, directly or indirectly, to any 

purchaser of a machine or attachment or to any official officer or 

employee of such purchaser, or to anyone else, in connection with 

any sale or prospective sale, any open or secret rebate, commission, 

bonus, refund, unearned discount, or subsidy of any kindi whether1 

in the form of money, services, froo repairs or parts, specia rates on 

repairs or parts, or otherwise. The sale by any member of the 

Industry of parts or of any other article regularly sold by such 

member, at a price less than his regularly established selling price 

therefor, in connection with the sale of a new machine or attachment, shall constitute a rebate. No member of the Industry shall 

give any gift or gratuity of any nature whatsoever, directly or indirectly, or sell any article whatsoever at a price less than the fair 

value thereof, in connection with the sale of any product of the 

Industry, to influence any purchaser or prospective purchaser to buy 

such product. Nothing herein contained shall prevent the payment 

of cmnpensation to employees and regularly established distributors 

of the members of the Industry. 

(e) Looking Only to SerfUrity.-In the sale of a new machine or 

attachment, waiving or agreeing to waive the obligation of the purchaser to pay the purchase price in whole or in part, or limiting or 

agreeing to limit the manufacturer's right to collect by suit the purchase price in whole or in part, or agreeing to look only to the machine for security. 

(f) Protection of Price Ohmnges.-Agreeing by option or otherwise, with a prospective purchaser of a new machine or attachment 

as to price of a future sale or agreeing to give the purchaser of a new 

machu1e or attachment any reduction in the contract sale price contingent on future price reductions . . 

SEc. 14. Misrepresentation of Own Products.-In the sale or offering for sale of any machine or attachment, members of the Industry 

shall use their best efforts to prevent misrepresentation of their products by any false means or device which has the capacity or tendency 

to mislead or deceive purchasers or prospective purchasers. 

SEc. 15. Defa11Wtion of Oompetitors.-No members of the Industry 

shall defame any competitor by words or acts which falsely represent 

the business integrity or ability to perform contracts of any competitor, or the grade, quality, or reliability of his products. 

SEc. 16. Interference with Contractual Relations.-No member of 

the Industry shall maliciously induce or attempt to induce the breach 

of an existing oral or written contract between a competitor and his 

customer or source of supply, or interfere with or obstruct the performance of a,ny such contractual duties or services. 

SEc. 17. Stamdards of Responsibility.-Members of the Industry 

should maintain necessary engineering and production facilities to 
9 

fulfill warranties and credit terms involved in sales, and to supply 

necessary service and repair parts. 

SEc. 18. Other Unfair Practices.-Nothing in this Code shall limit 

the effect of any adjudication by the Courts or holding by the Federal Trade Commission on complaint, finding, and order, that any 

practice or method is unfair, providing that such adjudication or 

holding is not inconsistent with any provision of the Act or of this 

Code. 

ARTICLES 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-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. 

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

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the 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 approval thereof. · 

(e) VVithin each State, this Code shall not supersede any laws 

of such State imposing more stringent requirements relative to the 

age of employees, wages, hours of work, or general working conditions than are imposed by this Code. 

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

included herein by the 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 Act consistent with the provisions thereof. 

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

such manner as to-

( a) promote monopolies or monopolistic practices; 

(b) permit or encourage unfair competition; 

(c) eliminate or oppre s mall enterpri es; or 

(d) discriminate against small enterprises. 

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

the members of this Code partners for any purpose. 
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(i) If any employer in this Industry is also an employer in any 

other Industry, the provisions of this Code shall appll' to and affect 

only that part of the business of such employer which 1s a part of the 

Industry covered by this Code. 

(j) This Code shall be in effect beginning on the second Monda X 

after its approval by the President. It shall remain in effect untll 

June 16t 1935, unless the Act ceases to be in effect therebefore, and 

shall be binding upon all members of the Industry. 

0