Approved Code No. 228 Registry No. 1334-01

NATIONAL RECOVERY ADMINISTRATION

CODE OF FAIR COMPETITION

FOR THE

COIN OPERATED MACHINE

MANUFACTURING INDUSTRY

AS APPROVED ON JANUARY 23, 1934

MEMBER R

U.S.

WE DO OUR PART

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

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

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Seattle, Wath.: S09 Federal Office Building.

(II)
Approved Code No. 228

CODE OF FAIR COMPETITION

FOR THE

COIN OPERATED MACHINE MANUFACTURING

INDUSTRY

As Approved on January 23, 1934

ORDER

APPROVING CODE OF FAIR COMPETITION

FOR THE

COIN OPERATED MACHINE MANUFACTURING

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 approval of a Code of

Fair Competition for the Coin Operated Machine Manufacturing

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, in 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 otherwise, do hereby incorporate by reference said annexed report and do find that said Code complies in all respects

with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that said Code

of Fair Competition be, and it is hereby, approved.

HUGH S. JOHNSON,

Admin istrator for Industrial Recovery.

Approval recommended:

MALCOLM MUIR,

Division Administrator.

WASHINGTON, D.C.,

January 2?3, 1934.

35372*-- 313-111---34 (435)
The PRESIDENT,

The JV/Kte Home.

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

Coin Operated Machine Manufacturing Industry. and on the hearing conducted thereon in Washington, D.C., on November 23, 1933

in accordance with the provisions of the National Industrial Recovery Act.

PRoVIsIONS AS TO WAGES AND hOURS

'Ihe io.Ie provides a mininium wage rate for production employees

Of 41(1e per hour in the North and 35c per hour in the South. Watch1men. a limited number of haildicapped persons, and. for not to exceed 90 day, a limited number of beginners without experience, may

be paid nut less than 8' of the foreging minima.

All otlihir employees are to be paid not less than from $14 to $15

pier' week. according to population. except that a limited number of

fIhv11 buys or girls may be paid not les than 80'' of these minima.

E'iiitable adjustment is to be made of wages above the minima

to maintain differentials existing as of May 1. 1933.

A i h ei r-lt-hliour day anid a 40-hour week are provided, except that

I''n m'ce>itated by peak or breakdown demands, employees may

urik not to ex -eed 4S hours per week. Hour> worked in excess of

40 hIours per week witliout payment of overtime. shall not exceed.

v 111thi ps 3)1iud.E in ay 3 hour> x fur production employees and 48

h1>i s for all other employees, and in no case may any employees

o olk ii exw 0e of 96 Jiours in any two weeks' period.

No ltaile(l statistics relative to this Industry had beeit collected

priOrW to the foriiation of the National Association of Coin Operated

Machine Ma nufactun'rs in August 1933. This Association has attI 1lptcd to get iigiures from every known manufacturers in the Indust IV and ha -ed on the returns received up to the time of preparing

ths re port. plus a reas 00mable estimate for thi se (' oirerns which hadl

Wt at that t! 1e1 reported l. the following figures are submitted as the

be2 t est imiate po' sible under the conditions:

Numnber Miniof em- 1mi1m oIiurs per week Weeklv

ployees Wages ari

Avcragr - ---- 2,- 2 07 $0.37 41-4" 44 $54,900

- - - - --.-- 2. 1 37 41-4 1, 44 57,00

- -

2

.31 41 -445,314) i trch "33 -------------------- ---- ------------- 501 . 5 41-45 43 46,410

--- - 3, 1- .3-10 39-12 40 53, 200

L:w'iiI Eu ( ne~l U'l--------------------------------,9 mlreo.....3, 30 -400 .0-------- .- _40 ---- 40 6t), 0,0()(

PrIacticall all memIIb)ers ()f t1e A ss ciat ion signed the President's

Reemploymi it-nit Agreemenit in AuiuI . and the increase in employ-

(436)
437

ment resulting from reduced hours is indicated in the figures of the

first twelve companies to report. These companies show a pay roll of

1,416 employees for the month of March 1933, and a pay roll of 1,892

employees for the month of September 1933, an increase of 33.6%

over March 1933.

The total amount paid in wages to factory employees only by these

same twelve companies increased from $116,789.77 in March 1933

to $133,174.77 in September 1933. Reports from several of these

companies for the first half of November 1933 show further sibstantial increases in employment.

Based on these returns, it is estimated that the effect of operating

tinder the Code Provisions will be an increase in the annual pay roll

of at least $300,000 over the annual rate of pay roll as shown in

March 1933.

I believe that the Code as proposed is fair to Industry, to Labor, and to the Consumer, and is in accordance with the intent and purpose of the National Industrial Recovery Act.

FINDINGS

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

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

I find that:

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions to the free flow of interstate and foreign

commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management

under adequate governmental sanctions and supervision, by elinunating unfair competitive practices, by promoting the fullest possible

utilization of the present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing

and relieving unemployment, by improving 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 of said Act, including without limnitation Subsection (a) of Section 3, Subsection (a) of Section 7, and

Subsection (b) of Section 10 thereof ; and that the applicant group

is an industrial group truly representative of the aforesaid Industry;

and that said group imposes no inequitable restrictions on admission

to membership therein.

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

or monopolistic practices.
438

(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, therefore, I have approved this Code.

Respectf fully,

HUGH S. JOHNSON,

A 3l94istrator.

JANUARY 23, 1934.
CODE OF FAIR COMPETITION

FOR THE

COIN OPERATED MACHINE MANUFACTURING

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 Coin Operated Machine Manufacturing

Industry, and upon approval by the President, shall be the standard

of fair competition for such Industry and shall be binding upon

every member thereof.

ARTICLE II-DEFINITIoNs

SECTION 1. The term " Industry " as used herein shall mean and

include the coin operated machine manufacturing industry consisting of manufacturers of all types of coin operated machines and

devices which vend amusement, service, or commodities, including g

manufacturers of coin actuated devices for use in such machines, or

such related branches or subdivisions thereof as may from time to

time be included under the provisions of this Code by the President

after such notice and hearing as he may prescribe, but shall not

include manufacturers of coin operated telephone or gas-meter

equipment.

SEC. 2. The term " member of the industry " as used herein means

and includes any individual, partnership, association, corporation, receiver, trustee, or other person, without limitation, engaged in the

Industry, either as an employer or on his or its own behalf.

SEC. 3. The term "employee " as used herein, includes any and

all persons engaged in the Industry except a member of the Industry,

however compensated.

SEC. 4. The terms " President ", "Act ", and "Administrator " as

used herein shall mean respectively the President of the United

States, Title I of the National Industrial Recovery Act, and the

Administrator for Industrial Recovery.

SEC. 5. (a) The term " South " as used herein shall mean the

States of North Carolina, South Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Louisiana, and Texas.

(b) The term " North " as used herein shall mean the remaining

States of the United States.

SEC. 6. Population, for the purposes of this Code, shall be determined by reference to the latest Federal census.

(439)
440

SEC. 7. The words " export trade " as used herein shall mean solely

trade or commerce in goods, wares, or merchandise exported or in

the course of being exported from the United States to any foreign

nation.

ARTICLE III-LABOR PROVISIONS

WAGES

SECTION 1. As reajuired by Section 7 (a) of Title I of the National

Industrial Recovery Act. the following provisions are conditions of

this Code:

(a) That employees shall have the right to organize and bargain

collectively through representatives of their own choo ing 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-organization or in other concerted activities for the purpose

of collective bargaining or other mutual aid or protection.

(b) That no employee and no one seeking employment shall be

re(quired as a condition of employment to join any company union

or to refrain from joining. organizing, or assisting a. labor organizatiom of his own choosig(.r

(c) That employers shall comply with the maximimi hours of

labor. m munmt rates of pay. and other conditions of employment.

approl d 01 prescribed hy the President.

StC. 2. 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 occupations which are hazardous in nature

or dangerous to health. The Code Authority shall submit to the

Adhuinistrator for approval within sixty (60) days after approval

of this Code a list of such occnpations. In any State an employer

shall be deemed to have complied with this provision as to age if

he shall have on file a valid certificate or permit duly signed by the

AHI hority in such State empowered to issue employment or agre certificates Or permits showing that the employee is of the required age.

SEC. 3. (a) On an(l after the effective date the minimumi wage

whicli shall be paid by any employer to any eiployee engaged in

the prfessing f products in the Industry and aY labor incident

thereto shall be forty (400) cents per hour in the North.

(b) On and after the effective date the minimum wage which

1wl b iwi p i a byr to any employee engaged in the proceo- in1 of pr-oducts of the Industry or amy labor incident thereto

shall 1e t0hi rt-five cents (35<) per hour in the Soith.

(c) Prm i led that for a period of not to exceed minety (90) days,

bweirs without experience may be paid not less than eighty perCent (S01; ) of the mininumn wa-es of forty cents (40 ) per hour

in the North, and thirty-five cents (3a5) per hour in the South, the

total niilmber of such beginners shall not exceed five percent (5; 

of the total mil11ber of employees employed by any such clmpi loyer in

Iv ca lendar month; and

(d) Provided further, that where any State Law requires any

higher minum wages than those specified in tlh is section. such

higher millnim wages shall apply in all cases.
441

(e) Equitable adjustments to maintain differentials existing as of

May 1, 1933, in all pay sciediiles of factory employees (and other

employees receiving Iess than Tirity-five ($35.00) Dollars per week)

above the miinimums shall be mad(: on or before fifteen days Subsequent to the effective date of this Code by any employers who have

not heretofore made such adjustmn 1(ts, 01r who have not maintained1

rates comparable with such eqlit able adjustments. The first reports

of wages required to be filed under tis Code shall contain all wage

increases made since May 1, 1933.

(f) In the case of ellployees performing work for wh lich they are

paid per piece of work performed, the uinim rate of pay wlich

each member of the Industry shall pay for such work shal I produce

earnings per hour per employee for the number of hotirs worked

in any pay period at least equal to the minimum rate of pay per

hour provided in this Code for the same type of lal)or oni an lh9Ilrly

basis.

SEC. 4. On and after the effective (late the minimum wa2:e that

shall be paid by any employer to all other employes, except commission sales people and all employees covered by Section 4 of Article

III hereof, shall be not less than at the rate of Fifteen Dollars

($15.00) per week in any city of over Five hundred Thousand (710,-

000) population, or in the inimediate trade area of such iy - ; nor les

than at the rate of Fourteen Dollars and fifty cents ($14.50) per

week in any city between Two Hundred and Fifty Thousand (20,-

000) and Five Hundred Thousand (500.000) population, or in the

immediate trade area of such city; nor less than at the rate of

Fourteen Dollars ($14.00) per week in any city of Two hlund red

and Fifty Thousand (250,000) population or less.

Office boys and girls shall be exempt from the provisions of this

section, provided they are paid at a rate of not less than eighty

percent (80%j ) of the above minitman wages, and provided further

that the number of such office boys and( girls under this section shall

not exceed one for companies with twenty (20) or less office employees nor five percent (5%) of the total number of office employees

for companies with more than twenty (20) office employees.

"oURs

SEC. 5. (a) No employee shall be permitted to work in exce s of

forty (40) hours in any one week. The normal working day shall

not be in excess of eight (8) hours in any twenty-four (24) hour

period beginniiig at midnight. There may be the following exceptions to this weekly-hour provision:

1. Executives, administrative or supervisory employees who receive

thirty-five dollars ($35.00) or more per week, and outside salesmen

and commission salesmen, shall be exempt from all hour limitations.

2. Employees engaged in the processing of products in the Industry and work incident thereto in branches of the Industry on which

seasonal or peak demands place an unusual and temporary burden, and employees working in emergency periods resulting from breakdowns, may be permitted to work not more than thirty-two (32)

additional hours in any six (6) months' period, but not more than
442

forty-eight (48) hours in any one week, without the payment of

overtime as provided in Section 5 (a) 4.

3. Also under like conditions to those described in Section 5 (a) 2

all other employees, except those mentioned in Section 5 (a) 2, may

be permitted to work not more than forty-eight (48) additional

hours in any six (6) months' period, but not more than forty-eight

(48) hours in any one week, without the payment of overtime as

provided in Section 5 (a) 4.

4. All employees may be permitted to work hours in addition to

those specified in Section 5 (a), 5 (a) 2, and 5 (a) 3, provided that

overtime at the rate of one and one half times the normal rate of

pay is paid for such additional hours. Under no circumstances may

any employee be permitted to work in excess of ninety-six (96)

hours in any two consecutive weeks.

5. All hours worked in excess of forty (40) hours in any one

week after the date of the approval of the Code shall be reported

to the Administrator through the Code Authority.

6. No employee shall knowingly be permitted to work in the

aggregate in excess of the above-prescribed number of hours irrespective of whether such employee be on the pay roll of more than

one employer.

GENERAL LABOR PROVISIONS

SECTION 1. (a) It is understood. however, that old and partially

disabled employees are not included in the above wage provisions,

except that they shall in no case be paid less than eighty (80) percent of the above minimums, and provided that the total number of

such employees shall not exceed two (2) employees in plants having

less than one hundred (100) employees, nor more than two (2) percent of the total number of employees in such plants employing one

hundred (100) or more.

(b) It is further understood that watchmen are not included in

the labor provisions of this Article, except that they shall in no case

be paid less than eighty (80) percent of the minimum wages herein

specified and in no case shall they be permitted to work longer than

fifty-six (56) hours in any one week unless they are paid time and

one half for any hours in excess of fifty-six (56) hours per week.

SEC. 2. Employers shall not reclassify employees, or ( ties, or occupations of employees, nor engage in any other subterfuge, so as to

defeat the purposes of this Act.

SEC. 3. Complete copies of this Code shall be posted in conspicuous

places accessible to all employees.

ARTICLE IV-ORGANIZATION, POWERS, AND DuTIEms OF THE CODE

AUTHORITY

SCECTION 1. A Code Authority is hereby constituted to cooperate

with the Administrator in the administration of this Code.

SEC. 2. The Code Authority shall consist of not less than five or

more than seven members, to be elected by the mnemnbers of the Industry who assent to by compliance with the requirements of this

Code, 11nd who assume their reasonable share of the expenses of the

administration as hereinafter set forth, the method of election and
443

voting to be determined by the Code Committee of the National Association of Coin Operated Machine Manufacturers, subject to the

approval of the Administrator, and in addition thereto, there may

be from one to three representatives to be appointed by the Administrator. T he representatives who may be appointed by the Administrator shall be without vote and together with the Admiistrator

shall be given notice of and may sit at all meetings o" the Code

Authority.

SEC' 3. The National Association of Coin Operated Machine Manufacturers may be designated as the agency under the Code Authority for administering provisions of this Code.

SEc. 4. The National Association of Coin Operated Machine Manufacturers and/or other associations directly or indirectly participating in the selection or activities of the Code Authority shall

(1) impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles of association, bylaws, reg-ilations, and any amendments when ia de thereto, together with such other information as to membership. organization, and activities as the Administrator may deem necessary to effectuate

the purposes of the Act.

SEc. 5. In order that the Code Authority shall at all times he truly

representative of the Industry and in other respects coimply with

the provisions of the Act, the Administrator may provide such bearings as he may deem proper; and thereafter if be shall find that the

Code Authority is not truly representative or does not, in oth-r respects

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

modification in the method of selection of the Code Authority.

POWERS AND DUTIES

SEC. 6. The Code Authority shall have the following powers and

duties to the extent permitted by the Act. Any action taken by the

Code Authority or its delegated agents relative to the administration

of this Code, except where made subject to the approval of the Administrator, may, in the discretion of the Code Authorijty. be siimitted to the Administrator for approval and in any case shall be

subject to the disapproval of the Adninistrator.

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

and for the administration and enforcement of the Code in accordance with the powers herein granted, except that a majority of the

voting members shall be required for a quorum and a vote by a like

number shall be required to make effective any formal action by

the Code Authority. The Code Authority shall subiit it> hvlNws

and rules and regulations for procedure, administration, and enforcement to the Administrator for his approval, together with true

copies of any amendments or additions when made thereto. minutes

of meetings when held, and such other information as to its activities

as the Administrator may deem necessary to effect the purposes of

the Act.

(b) To obtain from members of the Industry as soon as the neceosary readjustments within the Industry can be made, reports based

on periods of one, two, or four weeks, or multiples thereof, for use

of the Code Authority and the Administrator in the administration
444

and enforcement of the Code, and for the information of the President, and to give assistance to members of the Industry in improving methods, or in prescribing a uniform system of accounting and

reporting. All individual reports shall be kept confidential and

only general summaries thereof may be published.

(c) To receive complaints of violations of this Code, make investigations thereof, provide hearings thereon and adjust such complaints, and bring to the attention of the Administrator for prosecution, reconiniendations and information relative to unadjusted violations.

(d) To secure an equitable and proportionate payment of the

expenses of maintaining the Code Authority and its activities from

those members of the Industry who accept the benefits of the activities of the Code Authority and indicate their desire to participate

in this Code and their assent to the provisions thereof and to the

payment of their reasonable share of the expenses of the administration of the Code as hereinafter set forth.

(e) In the event of dispute arising as to the rights under this

Code, any member shall have the right to appeal to the Code Authority, and the decision of said Code Authority on said appeal shall

be final, subject only to appeal to the President or his duly authorized

representative.

SEC. 7. In addition to the 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.

SEC. 8. Each member of the Industry participating in and sharing the benefits of the Code and assenting to liability for his share

of the cost of administering same shall pay to the Code Authority

or to the agent duly established by the Code Authority his reasonable share of the expenses of the Code administration, such reasonable share of said expenses to be determined by the Code Authority

subject to review by the Administrator on the basis of volume of

business and/or such other factors as may be just or equitable.

SEC. 9. Nothing contained in this 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 exercising reasonable diligence in the conduct

of his duties hereunder, nor be liable to anyone for any action or

omission to act under the Code, except for his own willful misfeasance or nonfeasance.

ARTICLE V

SECTION 1. Every employer shall use a cost-accounting system

which will conform to the principles of and is at least as detailed

and complete as the uniform and standard method of cost accounting to be prescribed by the Code Authority subject to the approval

of the Administrator. The Code Authority shall specify those items

of cost determined pursuant to this Article hereof which shall be

included in allowable cost.

SEC. 2. (a) No manufacturer of the Industry shall sell any product

of the Industry at a price below his own individual cost. Provided,
445

that this shall not apply to merchandise vending machines sold,

leased, or supplied by a manufacturer for the sole purpose of vending some commodity on which the manufacturer of the machine is

to make a profit. Provided further, that any miember of the Industry may meet the price competition of anyone whose costs tider this

Code provision are lower.

(b) Provided that obsolete patterns, discontinIIIeId ( okdels or surpltt stock may be sold at such prices as are neces -ary to effect a "Ile

subject to rules as established or modified from time to time by the

Code Authority. All such I)ro)ose(d sales imulst be reported to the

Code Authority prior to making the sale. Any sale made under this

provision which is made for the purpose of evad ing rag'raph (a) of this Section, is an unfair method of competition.

Sic. 3. No provision of this Code relating to pric(2s and/or t(ritS

of selling, shipping, and/or marketing shall apply to export t ralde

and/or to trade and/or to sales and/or shipments for export trade.

ARTICLE I-TRADE PRACTICE RULES

For all purposes of the Code the following acts described in this

Article shall constitute unfair practices, and any meiiimber of thl

Industry who shall directly or indirectly, through any officer. eiiployee, agent, or representative, knowingly use. eim)plOy, (o pemit

to be employed any of such unfair practices shall be guilty of a.

violation of the Code:

(a.) The intentional misrepresentation of the products sold. or

the making, or causing or permitting to be made or pub1lllished. of

any false, misleading, or deceptive statements by way of advcrtIsement, invoice, or otherwise, concerning the size, q(ualitity. cha racte.,

and nature of any coin operated machine or kindred products,

bought or sold.

(b) Withholding from, or inserting in any invoice, wor1d> or

figures which make or tend to make such invoice a false record.

wholly or in part, of the transaction represented on the fa.c thereof,

and of the secret payment or allowances of rebates. refunds, credits,

unearned discounts, whether in the form of money or otherwise.

(c) The making of, or causing or permitting to be made. any

false or deceptive statements, either written or oral, concerning installations or sales previously made, or the claiming by any manufacturer that equipment actually supplied and installed )y others

was supplied and installed by him, or the making of any other

misleading or deceptive statements.

(d) To imitate or simulate the trade mark, trade name, package,

wrapper, or label of a competitor's product to such a degree as to

deceive or have a tendency to deceive customers.

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

whatsoever, a breach of contract between a competitor and a customer during the term of such contract.

(f) The copying or imitation of the design or construction of a

machine or device containing new or novel features or any material

parts thereof, in which the owner or manufacturer has property

rights, which can be protected by legal proceedings, by competitors
446

for their own use prior to the end of the year following that in

which they were originated.

(g) Securing information from competitors concerning their businesses by false or misleading statements or representations, or by

alse impersonation of one in authority, and the wrongful use thereof

to unduly hinder or stifle the competition of such competitors.

ARTICLE VII

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

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

10 () of Title I of the National Industrial Recovery Act, from time

to time to cancel or modify any order, approval, license, rule, or regulation issued under Title I of said Act.

SEC. 2. This Code, except as to provisions required by the Act,

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 by the President.

ARTICLE VIII

If any employer of labor in this Industry is also an employer of

labor in any other Industry, the provisions of this Code shall apply

to and affect only that part of the business which is a part of the

Coin Operated Machine Manufacturing Industry.

ARTICLE IX

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

This Code shall become effective on the tenth day after its approval by the President.

Approved Code No. 228.

Registry No. 1334-01.

0

UNIVERSITY OF FLORIDA

3 1262 08582 8993