Approved Code No. 347 — Supplement No. 43
Registry No. 1399—48
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON OCTOBER 11, 1934
WE DO CUR PART
UNIV. OF FLUi.
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
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Approved Code No. 317 — Supplement No. 43
SUPPLEMENTARY CODE OF FAIR COMPETITION
SAW MILL MACHINERY INDUSTRY
As Approved on October 11, 1934
Approving Supplementary Code or Fair Competition for the Saw
Mill Machinery Industry
a division of the machinery and allied products 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 1G, 1933, for approval of a Supplemen-
tal Code of Fair Competition for the Saw Mill Machinery Subdivi-
sion of Machinery and Allied Products Industry, and hearing having
been held thereon and the annexed report on said Supplemental
Code, containing findings with respect thereto, having been made
and directed to the President :
NOW. THEREFORE, on behalf of the President of the United
State.-, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27. 1934, and otherwise;
does hereby incorporate by reference said annexed report and does
find that said Supplemental Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and does hereby order that said Supplemental
Code of Fair Competition be and it is hereby approved; provided,
however, that the provisions of Article VIII, Sections (a) and (b),
insofar as they prescribe a waiting period between the filing with the
Code Authority (or such agency as may be designated in the Sup-
plemental Code) and the effective date of price lists, as originally
tiled and/or revised price lists or revised terms and conditions of
sale, be and they hereby are stayed pending further order.
National Industrial Recovery Board,
By G. A. Lynch, Administrative Officer.
Approval recommended :
Barton W. Murray.
Division Adm in istrator.
Washington, D. C,
October 11, 193b.
00842° 11244-41 34 (1)
REPORT TO THE PRESIDENT
The White House.
Sir: This is a report on the Supplemental Code of Fair Compe-
tition for the Sawmill Machinery Subdivision of Machinery and
Allied Products Industry, a public hearing on which was held in
Washington, D. C, on December G, 1933, and reconvened on De-
cember 21, 1933. The hearings were conducted in full accordance
with the provisions of Title I of the National Industrial Recovery
The Sawmill Machinery Subdivision, being truly representative
of the manufacturers of the products defined in Article II of the
Supplemental Code, has elected to formulate and submit a Supple-
mental Code of Fair Competition as provided in the second para-
graph of Article I of the Code of Fair Competition for the Ma-
chinery and Allied Products Industry, approved by you on the
seventeenth day of March, 1934.
The Subdivision includes the manufacture for sale of machinery
and parts thereof for use in sawmills for converting saw logs or
timbers into lumber and other timber products, and includes all
those engaged in the manufacture of such machinery for sale.
Annual sales in the Subdivision, according to the code applica-
tion, declined from $2,540,000 in 1929 to $201,000 in 1932, or 90
per cent. The Subdivision has not furnished direct figures which
would indicate an increase in production for 1933. Aggregate in-
vested capital and production capacity have remained reasonably
Estimates showing employment for the entire Subdivision sub-
mitted in the code application indicate that employment declined
from 057 wage earners in 1929 to 188 in 1933, or 71.4 percent.
The effect of the 40-hour provision with production at more normal
levels may be estimated on a basis of the 1930-1931 average of total
man-hours per week by dividing by the number of hours prescribed
in the code. After 1929, man-hours declined steadily from 34,090 to
a minimum of 0.930 in 1932, or approximately 80 percent. Average
man-hours in 1933 increased in 13,750, or 98.5 percent, and have
remained almost constant.
If it is assumed (hat (lie 17.745 average man-hours for 1930-1931
are representative of (he volume of production for those years, and
a reasonable measure of man-hour requirements in a more normal
period, the adoption of the 40-hour week would require a force of
approximately 440 employees or 67 percent of the L929 working
Owing to the impossibility of all employees of the Subdivision
working the maximum 40 hours, the average work week will be
shorter, say 36 assumed effective hours, and employment correspond-
ingly greater; viz. 490 workers will be required to produce the
The minimum wage provisions for the Subdivisions which are op-
erating under the Code of the Machinery and Allied Products In-
dustry, are based on a flat minimum hourly rate of 32 cents per hour
for the South and the following city population differentials for all
other sections of the United State- :
Over 50,000 population 40 cents per hour.
10,000 ui 50,000 population 38 cents per hour.
10,000 population and under 36 rents per hour.
In addition to the minimum wage rat;'.- shown above, the Code
provides that women engaged in substantially the same work as
men. shall receive the same rate of pay as such men employees; that
tlie minimum wage for women employees engaged in plant operation
shall be not less than 87.5 percent of the proper rate for the locality
in which employed as specified; and that the minimum in the South
shall be not less than 32 cents per hour.
Distribution of the number of factory workers receiving classified
rates in the specified areas are not available. Consequently, it is only
possible to estimate the approximate number of factory workers who
will receive the benefit of the proposed minimum hourly rates, re-
gardless of location, on the basis of the number of factory workers
receiving less than the designated hourly rates as of June 15, 1233.
Estimated number of factory ivorkers receiving less than designated hourly rates
Proposed minimum hourly
40 cent? (other !". S.)_
'other U. S.)_
(other l". S.)_
32 cents (South,'
Distribution of factory
workers receiving less
than the minimum, re-
gardless of location
Based on the distribution as of June 15, 1033 and on the specified
ntages of the number of factory workers receiving less than the
designated rate- shown in the above table, the adoption of the pro-
I minimum rates will probably cause an increase in factory pay-
roll-. The estimated increase as of June 15. 1933, regardess of loca-
tion of the workers, will probably, under the most favorable condi-
tions, not exceed 14.0 per cent assuming only upward adjustment in
the brackets below the 10-cent minimum and no change in man-hour
RESUME OF SUPPLEMENTAL CODE
Article I states the purpose of the Supplemental Code.
Article II accurately defines specific terms applicable to the Sub-
division as used in this Supplemental Code.
Article III provides for the adoption of the employment pro-
visions of the Code of Fair Competition for the Machinery and
Allied Products Industry, as approved by you, and as from time to
Article IV provides for the adoption of Articles II, VI, VIII and
IX of the Code of Fair Competition for the Machinery and Allied
Products Industry, in accordance with the conditions of this Article
governing their adoption.
Article V provides for the establishment of a Code Authority and
defines its powers and duties.
Article VI provides for an accounting system and methods of cost
rinding and/or estimating.
Article VII provides that no products of the Subdivision shall be
sold or offered for sale below a reasonable cost when the Code
Authority determines that an emergency exists.
Article VIII provides for method of setting up, revising and filing
price lists and discount sheets and terms of sale and payment.
Article IX states that no provision of this Supplemental Code
relating to pricing and marketing shall apply to export sales.
Article X provides for the modification of this Supplemental Code
by the President. Provision is also made that modifications may be
submitted by the Code Authority to the Administrator for approval.
Article XI. No provision of this Supplemental Code shall be so
applied as to permit monopolies, or monopolistic practices, or to
eliminate, oppress, or discriminate against small enterprises.
Article XII states the effective date of this Supplemental Code.
The Assistant Deputy Administrator in his final report to us on
said Supplemental Code having found as herein set forth and on the
basis of all the proceedings in this matter :
We find that:
(a) Said Supplemental 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 tcAi] to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-
tion 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 sanction and super-
vision, by eliminating 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 Subdivision normally employs not more than 50,000
employees; and is not classified by us as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act. including
without limitation Subsection (a) of Section :>. Subsection (a) of
Section 7, and Subsection (b) of Section 10 thereof; and that the
applicant association is an industrial association truly representa-
tive of the aforesaid Subdivision; and that said association imposes
no inequitable restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not per-
mit monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elimi-
nate or oppress small enterprises and will not operate to discriminate
(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
For these reasons, therefore. Ave have approved this Supplemental
Code, provided that certain provision- relating to price publication
are stayed as stated in the Order.
National Industrial Recovery Board,
By G. A. Lynch, Administrative Officer.
October 11, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
SAW MILL MACHINERY INDUSTRY
A DIVISION OF THE MACHINERY AND ALLIED PRODUCTS INDUSTRY
Article I — Purposes
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Supple-
mental Code of Fair Competition for the Saw Mill Machinery Sub-
division of the Machinery and Allied Products Industry, and
together with the Code of Fair Competition of Machinery and Allied
Products Industry, shall be the standard of fair competition for this
Subdivision, and shall be binding on every member thereof.
Article II — Definitions
"Applicant " means the Saw Mill Machinery Manufacturers Asso-
ciation, a trade organization, all members of which are engaged in
the manufacture for sale of the products of the Saw Mill Machinery
Subdivision of the Machinery and Allied Products Industry.
" Industry " means the Machinery and Allied Products Industry,
as defined in its Code of Fair Competition as approved by the Presi-
dent, March 17, 1934, and as such definition may from time to time
" Subdivision " means the Saw Mill Machinery Subdivision of the
Machinery and Allied Products Industry as denned and set forth
in paragraph 30 Article II of the Code of Fair Competition of the
Machinery and Allied Products Industry as follows :
" Sawmill Machinery Subdivision " means the manufacture for
sale of machinery and parts thereof for use in sawmills for convert-
ing saw logs or timbers into lumber and other timber products, and
includes all those engaged in the manufacture of such machinery for
" Code " means the Code of Fair Competition of the Machinery and
Allied Products Industry as approved by the President. March 17,
1934, and as from time to time amended.
" Person " means a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in bankruptcy, a receiver
or other entity.
•■ Employer " means any person engaged in this Subdivision either
on his own behalf or as an employer of labor.
" Employee " means any one who is employed in the Subdivision
by any such Employer.
" The Act " means Title I of the National Industrial Recovery Act.
"The President" means the President of the United States.
"Basic Code Authority" means the Code Authority for the
Machinery and Allied Products Industry as constituted by the Code.
" Code Authority " moans the Code Authority constituted for
this Subdivision as provided by the Code and bv this Supplemental
"Group Code Authority" means the Code Authority for any
group or product classification within this Subdivision.
" Publish " means to make available to the public.
Article III — Employment Provisions
The following Articles of the Code, viz: Article III, "Working
Hours'': Article IV, " Wages'*; and Article V, '"General Labor
Provisions ", are hereby made a part of this Supplemental Code,
with the same effect as if thev were written into this Supplemental
Article IV — Aeoftion of Other Provisions of Code
The following Articles of the Code, viz : Article II " Definitions "
Article VI. "Administration ", to the extent that they shall be
applicable to this Supplemental Code as such or as it may hereafter
be administered as an autonomous Code; Article VIII. "Modifica-
tions and Termination " ; and Article IX. "Withdrawal", are
hereby made a part of this Supplemental Code, with the same effect
as if they were written into this Supplemental Code.
Article V — Administration
(a) A Code Authority for this Subdivision is hereby constituted
to administer, supervise and facilitate the enforcement of the Code
and of this Supplemental Code in the manner and to the extent
provided in the Code and in this Supplemental Code.
(b) During a period not to exceed sixty (GO) days following
the effective date and pending the election of the permanent Code
Authority, the executive committee of the Applicant shall constitute
a temporary Code Authority.
This Subdivsion, having held an election for a permanent Code
Authority under the provisions of the Code of Fair Competition
for the Machinery and Allied Products Industry, the method of
election having been approved, and the Code Authority having been
officially recognized, the Code Authority so elected shall constitute
the first permanent Code Authority for this Subdivision. For sub-
sequent election-, the provisions of this Code for election of a per-
manent Code Authority shall apply.
(c) The applicant shall, by written notice mailed to all employers
whose names the applicant has obtained after reasonably diligent
search, call a meeting of employers to be held within sixty (60)
days after the effective date for the purpose of electing a perma-
nent Code Authority, which shall consist of not less than three
(3). nor more than nine (9) members, and for the purpose of adopt-
ing procedural rules and regulations for the organization and opera-
tion of the permanent Code Authority. Such written notice shall
be sent by registered mail at least fifteen (15) days prior to the time
fixed for such meeting.
One of the members of the permanent Code Authority shall be
elected in any fair manner, with the approval of the National Indus-
trial Recovery Board, by employers in this Subdivision not members
of the Applicant, who are cooperating in this Supplemental Code as
described in Section (d) hereof, if so desired by such non-members.
Any vacancy on the Code Authority due to death, resignation, or
because a member thereof has ceased to be connected with the Sub-
division, shall be filled at a meeting of employers called by the Code
Authority on at least fifteen days' notice by registered mail sent to
ail employers in this Subdivision, and by a vote similar to the vote
by which the retired member was originally elected.
The National Industrial Recovery Board may. in its discretion,
appoint one additional member (without vote and without expense
to the Industry). The permanent Code Authority so elected and
appointed shall supersede the temporary Code Authority.
(d) Any employer shall be entitled to vote, either in person or by
proxy, at the election of the permanent Code Authority and at other
meetings of employers and share in the benefits of the activities of
Code Authority and may participate in any endeavors of Code
Authority in the preparation of any amendments or revisions of, or
additions or supplements to, this Supplemental Code by paying or
agreeing to pay, as and when assessed, his proper pro rata share of
the reasonable cost of administering this Supplemental Code as
determined by Code Authority and approved by the National Indus-
trial Recovery Board.
This pro rata share shall be computed on the basis of one share for
each $100,000 of the average annual sales billed f . o. b. plant by each
employer for the preceding two calendar years as reported to Code
Authority, to be computed at the beginning of each calendar year
and to apply throughout the then current year. Each employer
shall be obligated to pay at least one share.
(e) Action by employers in any Subdivision meeting for the elec-
tion of Code Authority shall be by vote of the employers entitled
to vote as provided in Section (d) of this Article V, each such em-
ployer to have one vote only. Action by employers in any Sub-
division meeting for the adoption of procedural rules, revisions or
additions to the Supplemental Code, or the transaction of other busi-
ness of the Subdivision under this Supplemental Code, shall be by
vote of the employers in the Subdivision who are entitled to vote
thereat as provided in Section (d), Article V of the Supplemental
Code and are present in person or by proxy duly executed and filed
with Code Authority; cast and computed in the manner provided in
Section (d). Article VI of the Code. All questions as to the num-
ber of votes which each employer shall be entitled to cast at any
meeting of employers other than the meeting held to vote for the
election of the permanent Code Authority shall be determined by
Code Authority, in accordance with Section (d) Article VI of the
In order that the Code Authority shall at all times be truly repre-
sentative of the Subdivision and in other respects comply with the
provisions of the Act, the National Industrial Recovery Hoard may
prescribe such hearings as it may deem proper; and thereafter if it
shall find that the Code Authority is not truly representative or does
not in other respects comply with the provisions of the Act, may
require an appropriate modification of the Code Authority.
Each trade or industrial association directly or indirectly partici-
pating in the selection or activities of the Code Authority shall (1)
impose no inequitable restrictions on membership, and (2) submit to
the National Industrial Recovery Board 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 National Industrial Recovery
Board may deem necessary to effectuate the purposes of the Act.
(f) Employers in this Subdivision having a common interest and
common problems may be grouped by Code Authority for admin-
istrative purposes. There may be a group Code Authority ap-
proved or appointed by a Code Authority for each such group,
(g) If formal complaint is made to Code Authority that provi-
sions of this Supplemental Code have been violated by any employer,
Code Authority or the proper Group Code Authority may, to the
extent permitted by the Act, cause such investigation or audit to be
made, as may be deemed necessary. If such investigation is made
by Group Code Authority it shall report the result of such investiga-
tion or audit to Code Authority for action.
(h) The Code Authority may appoint a Trade Practice Commit-
tee which shall meet with the Trade Practice Committees appointed
under such other Codes as may be related to the Subdivision for the
purpose of formulating fair trade practices to govern the relation-
ships between production and distribution employees under this
Supplemental Code and under such others to the extent that such
fair trade practices may be proposed to the National Industrial
Recovery Board as amendments to this Supplemental Code and
such other codes.
Article VI — Accounting and Costing
The Code Authority shall cause to be formulated an accounting
system and methods of cost finding and /or estimating capable of
use by all employers of the Subdivision. After such system and
methods have been formulated, full details concerning them shall
be made available to all employers. Thereafter all employers shall
determine and/or estimate costs in accordance with the principles
of such methods.
Article VII — Selling Below Reasonable Cost
Section 1. When the Code Authority determines that an emer-
gency exists in this Subdivision and that the cause thereof is de-
structive price-cutting such as to render ineffective or seriously
endanger the maintenance of the provisions of this Supplemental
Code, the Code Authority may cause to be determined the lowest
reasonable cost of the products of this Subdivision, such determina-
tion to be subject to such notice and hearing as the National In-
dustrial Recovery Board may require. The National Industrial
Recovery Board may approve, disapprove, or modify the deter-
urination. Thereafter, during the period of the emergency, it shall
be an unfair trade practice for any employer of the Subdivision
to sell or offer to sell any products of the Subdivision for which
the lowest reasonable cost has been determined at such prices or
upon such terms or conditions of sale that the buyer will pay less
therefor than the lowest reasonable cost of such product.-.
When it appears that conditions have changed, the Code Author-
ity, upon its own initiative or upon the request of any interested
party, shall cause the determination to be reviewed.
Article VIII — Price Lists
(a) If and when Code Authority determines that in any group
of the Subdivision it has been the generally recognized practice to
sell a specified product on the basis of net price lists, or price lists
with discount sheets, and terms of sale and payment, each employer
engaged in the manufacture of such product shall, within ten (10)
days after notice of such determination, file with Code Authority a
net price list, or a price list with discount sheet, as the case may be,
individually prepared by him showing his current prices, or prices
and discounts, and terms of sale and payment for such specified
product, and Code Authority shall immediately publish and send
copies thereof to all known employers who are cooperating under
this Supplemental Code as described in Article V (d) and engaged
in the manufacture of such specified products.
Revised price lists and/or discount sheets and/or terms of sale
and payment may be filed from time to time thereafter with the
Code Authority by any such employer, to become operative upon the
date specified therein, but such revised price lists and/or discount
sheets and/or terms of sale and payment shall be filed with the Code
Authority ten (10) days in advance of the operative date. Copies
thereof, with notice of the operative date specified, shall be immedi-
ately published and sent to all employers cooperating under the Sup-
plemental Code as described in Article V (d), an}' of whom may
file, if he so desires, revisions of his price lists and/or discount sheets
and/or terms of sale and payment, which shall become effective upon
the date when the revised price list and/or discount sheets and/or
terms of sale and payment first filed shall go into effect.
(b) If and when Code Authority shall determine that in any
group of the Subdivision not now selling its product on the basis of
price lists and/or discount sheets and/or terms of sale and payment,
the distribution or marketing conditions in the group are the same
as, or similar to, the distribution or marketing conditions in a group
where the use of price lists and/or discount sheets and or terms of
sale and payment is well recognized, and that a system of selling on
net price lists or price lists and discount sheets with terms of sale
and payment lot' such specified product should be put into effect in
such group, then each employer in such group shall within twenty
(20) days after notice of such determination, file with Code Author-
ity net price lists or price lists and discount sheets, with terms of sale
and payment, showing his prices and discount sheets, witli terms of
sale anil payment, and such price lists and/or discount sheets, and/or
terms of sale and payment may be thereafter revised in the manner
hereinbefore provided. Such' methods of pricings and revisions
thereof shall be " published and sent " as described in this Article
VIII, Section (a). Provided that Code Authority shall make no
determination to place any product of the Subdivision (not now on
a price list basis) on a price list basis, as provided in this Section
unless affirmative consent to such determination is given by a two-
thirds vote of employers who are at that time cooperating under this
Supplemental Code as described in Article V (d), and are engaged
in manufacturing such product. The eligibility requirements,
method, and eifect of such voting shall be the same as is provided by
(c) If and when Code Authority shall determine that it is unde-
sirable to continue the filing of net price lists and/or price lists with
discount sheets and/or fixed terms of sale and payment on any prod-
uct in respect of which such filing has theretofore been required,
such filing shall cease and the provisions of this Article shall not
apply to such product unless and until Code Authority shall again
determine that such filing be made.
(d) Code Authority for the purpose of determining lowest reason-
able cost, shall have power, on its own initiative, or on the complaint
of any employer, to investigate, to the extent permitted by the Act,
any price or the terms of sale and payment for any product shown
in any price list and/or discount sheet so filed with Code Authority
by any employer; and. for the purpose of the investigation thereof,
to require such employer to furnish such information concerning the
cost of manufacturing and selling such product as Code Authority
shall deem necessary or proper for such purpose.
No employer shall sell directly or indirectly, by any means what-
soever, any product of the Industry covered by provisions of this
Article VIII at a different price or on more favorable terms of
pay n lent, than those provided in his own current net price lists, or
price lists and discount sheets.
Article IX — Sales for Export
The provisions of this Supplemental Code concerning pricing and
marketing shall not apply to direct export sales of any product or
to sales of any product destined ultimately for export. The term
" export " shall include all shipments to all places without the sev-
eral States of the United States and the District of Columbia ; pro-
vided, however, that no shipment to any territory or possession of
the United States shall be considered an export when any employer
is engaged in the subdivision in such territory or possession.
Article X — Modifications
(a) As provided by Section 10 (b) of the Act. the President may
from time to time cancel or modify any order, approval, license, rule
or regulation issued under Title I of the Act.
(b) Any amendments, additions, revisions, or supplements of this
Supplemental Code, proposed by Code Authority, and authorized by
the affirmative vote of two-thirds of the employers, shall be in full
force and effect upon approval by the National Industrial Recovery
Board. The eligibility requirements, method and effect of such vot-
ing shall be the same as provided by Article V hereof.
Article XI — Monopolies
No provision of this Supplemental Code shall be so applied as to
permit monopolies or monopolistic practices, or to eliminate, oppress,
or discriminate against small enterprises.
Article XII — Effective Date
This Supplemental Code shall become effective and binding on all
persons engaged in the Subdivision on the eleventh day after its
Approved Code No. 347 — Supplement No. 43.
Registry No. 1399—48.
UNIVERSITY OF FLORIDA
3 1262 08582 9132