Motor Fire Apparatus Code Now Governs the Manufacture and Sale of Apparatus
WITH its approval on Nevember 8 by President Roosevelt, the code for “Fair Competition for the Motor Fire Apparatus Manufacturing Industry” became a law. Thereafter manufacturers of such apparatus, whether or not members of the Motor Fire Apparatus Manufacturers’ Association, which formulated the Code, must conform to the Code requirements.
For the information of the readers of FIRE ENGINEERING, the Code is reproduced in its entirety in the columns of this journal:
Code of Fair Competition for the Motor Fire Apparatus Manufacturing industry
An application having been duly made, pursuant to and in lull 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 Motor Fire Apparatus Manufacturing 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 3 of the said act have been met:
NOW THEREFORE, I, Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in my by title I of the National Industrial Recovery Act, approved June 16, 1933, and otherwise, do adopt and approve the report, recommendations and findings of the Administrator and do order that the said code of fair competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT. The White House, November 8, 1933.
Approval recommended: Hugh S. Johnson, Administrator.
Letter of Transmittal by Administrator Johnson
November 3, 1933.
The President, The White House.
Sir: The proposed Code of Fair Competition for the Motor Fire Apparatus Manufacturers Industry was submitted to the Administrator on October 10, 1933, by the Motor Fire Apparatus Manufacturers Association, representing approximately 70% of the number of manufacturers engaged in the industry, and 90% or more of the dollar volume of the industry. The Hearing was conducted in Washington, on October 24, 1933, and the Code was revised during the recess of this hearing and was submitted in its present form for approval. All persons who requested an appearance were properly beard in compliance with statutory and regulatory requirements.
Fire apparatus manufactured by this industry is individual and built to specifications; the market for the products manufactured by the industry is limited to municipalities, divisions of State or Federal Government, and large manufacturers, maintaining independent fire protection.
The Industry has suffered a tremendous decrease (approximately 70%) in its sales during the past four years. The capital invested in the Industry has been seriously depleted. The equipment of its principal purchasers, namely municipalities, is comparatively modern. Throughout this period, however, the wages of its employees have been steadily maintained, and the extremely high average hourly rate of approximately 72 cents bespeaks tbe fairness of the members during the depression period.
The number of employees has only decreased in the same period approximately 50%. With the provision of a maximum week of 35 hours and the possibility of credit extensions through possible Governmental loans to its limited consumer market, it is estimated that a 25% increase in wages and an additional 10% increase in employment will result.
ARTICLE I. Purposes.
ARTICLE II. Definitions.
ARTICLE III. Provides a maximum week of 35 hours with a tolerance of 3% for all employees except watchmen, outside salesmen, and delivery engineers and employees engaged in a managerial or executive capacity earning in excess of $35.00 per week. Employees engaged solely in maintenance and repair work, engineers, furnace firemen, and janitors are limited to 40 hours per week.
ARTICLE IV. Establishes a minimum rate per hour of 40 cents and a minimum rate for all employees of $14.00 and provides for full adjustments in all pay schedules.
ARTICLE V. Provides no person under 16 years of age may be employed. No one under 18 years of age may be employed in a hazardous occupation. Prohibition of reclassification.
ARTICLE VI. Provides for a code authority to consist of five individuals representing the industry and two additional nonvoting members may be appointed by the Administrator.
ARTICLE VII. Provides the fair trade practices of the industry.
ARTICLE VIII. Provides a merchandising plan.
ARTICLE IX. Modifications.
ARTICLE X. Monopolies.
ARTICLE XI. Provides for filing with association of changes in price.
ARTICLE XII General.
ARTICLE XIII. Effective date.
The Administrator finds:
- This Code complies in all respects with the pertinent phrases of title I of the act including without limitation subsection A of section 7 and subsection B of section 10 thereof.
- The Motor Fire Apparatus Manufacturers’ Association is truly representative of tbe Motor Fire Apparatus Manufac turers’ Industry and the bylaws of this association contain no inequitable restrictions on membership.
- The code is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to effectuate the policy of title I of the National Recovery Act.
It is recommended, therefore, that this code be approved.
Respectfully, HUGH S. JOHNSON,
Code of Fair Competition for the Motor Fire Apparatus Manufacturing Industry
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 Motor Fire Apparatus Manufacturers’ 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.
- The term “motor fire apparatus manufacturers’ industry” or “industry” as used herein shall mean the manufacture in the United States and sale by manufacturers of motor-propelled fire apparatus, including pumping engines, aerial trucks, water towers, hook-and-ladder trucks, service trucks, chemical engines, hose cars, salvage cars, squad cars, all other motor-propelled vehicles and equipment for same, used for fire protection purposes, motor pick-up street sweepers, and service parts for same,
- The application of the Code of Fair Competition to the products enumerated in this article shall he defined as follows:
- If the operation of any provision of this Code should interfere with the exercise of the existing lawful patent rights or rights under an existing lawful patent licensing agreement, anyone affected thereby may apply to the Code Authority, which shall have power to grant an exemption, subject to the approval of the Administrator.
- The products listed in Paragraph 1 shall be subject to all tbe provisions of tbe Code of Fair Competition and articles except as limited by subparagraph (a) hereof.
- The term “member of the Industry” as used herein shall mean any employer engaged in the motor fire-apparatus manufacturers’ industry.
- The term “member of the Code” shall mean any member of the industry who signifies assent to this Code.
- The term “Association”, as used herein, shall mean the Motor Fire Apparatus Manufacturers Association, a Trade Association organized Under the laws of the State of Delaware, and having its principal place of business at 100 West Tenth Street, Wilmington, Delaware.
- The term “employee” as used herein includes anyone engaged in the industry in any capacity receiving compensation for his services, irrespective of the nature or method of payment of such compensation.
- The term “employer” as used herein includes anyone by whom any such employee is compensated or employed.
- The terms “President”, “Act”, and “Administrator” as used herein shall mean, respectively, the President of the United States, the National Industrial Recovery Act, and the Administrator of said Act.
Article III—Hours of Labor
- Members of the Industry shall so operate their plants that the average employment of all factory employees (with exceptions stated below) shall not exceed thirty-five hours per week for the period from the effective date to December 31, 1933, and quarterly thereafter, and the hours of each individual employee shall so far as practicable conform with this average and shall in no case exceed the same by more than three per cent.
In order to give to employees such average of thirty-five hours per week, it will be necessary at times to operate for substantially longer hours, but no employee shall be employed for more than six days or 48 hours in any one week, and all such peaks shall be absorbed in such average.
- No other employees, except watchmen, outside salesmen, and delivery engineers as termed in this Industry, unless employed in a managerial or executive capacity and earning in no week less than $35.00, shall be permitted to work in excess of 48 hours in any one week, and not more than an average of 40 hours per week for the period from the effective date to December 31, 1933, and quarterly thereafter.
- Employees engaged solely in maintenance and repair work, engineers, furnace firemen, and janitors shall not work more than 40 hours in any one week, or more than 8 hours in any twenty-four hour period, unless paid one and one-half hours’ pay for each hour worked overtime.
- No member of the Industry shall pay any factory or mechanical worker or artisan less than 40 cents per hour.
- No member of the Industry shall pay any accounting, clerical, office, service, sales or other employees less than $14.00 per week.
- Equitable adjustments in all pay schedules of factory employees above the minimum shall be made on or before thirty days subsequent to the effective date of this Code by any employers who have not heretofore made such adjustment; and the first reports of wages, required to be filed under this Code, shall contain all wage increases made since June 1, 1933. Pay schedules shall be subject to review and readjustment by the Administrator. In no case shall rates be decreased.
- Office boys and girls tinder twenty-one years of age, superannuated employees, and/or pensioners may be paid at a rate not less than 80 per cent of the foregoing minimum rates, but in no case shall this class of employee constitute more than 5 per cent of the total number of employees.
- This Article establishes a minimum rate of pay, regardless of whether an employee is compensated on a time-rate, piecework, or other basis.
Article V—General Labor Provisions
- No person under 16 years of age shall be employed in the Industry, nor anyone unuer 18 years ot age at operations or occupations hazardous in nature or detrimental to health. In any State an employer shall be deemed to have complied with this provision it he shall have on file a certificate or permit duly issued by the authority in such State empowered to issue employment or age certificates or permits showing that the employee is of the required age.
- Employees shall have the right to organize and bargain collectively through representatives of their own choosing and shall be free from the interference, restraint, or coercion of employers of labor or their agents, in the designation of such representatives, or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.
- 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.
- Employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment approved or prescribed by the President.
- Within each State this Code shall not supersede any laws of such State imposing more stringent requirements on employers regulating the age of employees, wages, hours of work, or health, fire, or general working conditions than under this Code.
- Employers shall not reclassify employees or duties of occupations performed by employees so as to defeat the purpose of the Act.
- No employee shall work or be permitted to work for a total number of hours in excess of the number of hours prescribed for each week and day, whether employed by one or more employers. Provided, however, that if any employees should be employed by more than one employer for an aggregate period in excess of such maximum without the knowledge or connivance of any one of such employers, such employer shall not be held to have violated the Section.
- Employers shall post in a conspicuous place, accessible to all employees, the labor provisions of this Code.
To further effectuate the policies of the Act, a Code Authority is hereby constituted to cooperate with the Administrator in the administration of this Code.
The Code Authority shall have the following powers and duties, in addition to those elsewhere provided in this Code, subject to the right of the Administrator, on review, to disapprove or modify any action taken by the Code Authority.
- The Code Authority shall consist of five individuals representing members of the Industry selected by a method approved by the Administrator. The Administrator, in his discretion, may appoint not more than two additional members (without vote) to represent the Administrator.
- The Code Authority is hereby constituted the agency for collecting statistical data as to costs, production, sales, and all other matters affecting the Industry as to which the Administrator may require information, and the members of the Industry shall furnish sworn statements or reports to the Code Authority as may be necessary in order to enable the Code Authority to collect and furnish to the Administrator the information required under the terms of the National Industrial Recovery Act. The members of the Industry shall keep their accounts in such form as may be necessary to enable them to furnish information desired by the Administrator. If the Code Authority should have reason to believe that any report submitted by any member of the Industry is inaccurate, it may designate a disinterested and impartial agency to verify such report by an examination of the relevant books and records of the member of the Industry concerned.
- The Secretary of the Association shall submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made 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.
- Members of the Industry shall be entitled to participate in and share the benefits of the activities of the Code Authority and to participate in the selection of the members thereof by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its administration. The reasonable share of the expenses of administration shall be deternmimined 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 deemed equitable to be taken into consideration.
- The Code Authority shall designate an agent or agents to investigate complaints or violations oi this Code. In the event of any willful violation being disclosed, the Code Authority may present evidence thereof to the proper department, agency, or judicial branch of the Government.
- Any interested party shall have the right of complaint to the Code Authority and a prompt hearing and decision thereon, under such rules and regulations as it shall prescribe, in respect to any act of any agent or agency designated by the Code Authority to act in its behalf.
- Any interested party shall have the right of appeal to the Administrator, under such rules and regulations as he shall prescribe, with respect to any decision, rule, regulation, order, or finding made by the Code Authority.
- In addition to the information requested 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.
Article VII—Trade Practices
No member of the Industry shall engage in any one of the practices condemned in the following Code of Ethics.
- Enticing employees from competitors.—Maliciously enticing an employee or employees of competitors with the intent of unduly hampering, injuring, or embarrassing a competitor or competitors in the conduct of their business.
- Misrepresentation.—Misrepresentation as to the quality, weight, or performance of any product sold or offered for sale by any member of the Industry.
- Demonstrators.—No member of the Industry shall reduce the price of a new apparatus under the guise that it is a demonstrator.
- All demonstrators now in stock at branches or factory, or in the hands of salesmen shall be registered with the Secretary of the Association. A proper description listing the capacity, type, and serial or factory number shall be given. The Secretary of the Association shall provide the members of the Industry with the list in question.
- Repossessed new and used cars shall also be registered with the Secretary of the Association showing from whom repossessed.
- When such apparatus is sold the Secretary of the Association shall be notified to whom sold and at what price.
- No further apparatus shall be built for demonstrations. Demonstrations at the factory or established branches shall not come within this meaning.
- New show cars shall not be sold except at the member of the Industry’s established prices for new cars.
- Obsolete Goods.—The Code Authority shall make recommendations to the Administrator concerning the regulation of the disposal of obsolete goods.
- No member of the Industry shall invoice any customers for products other than those actually shipped against the invoice.
- No member of the Industry shall omit from any invoices any items pertaining to the sale.
- No member of the Industry shall permit a customer to make any deductions from the invoice not covered by the terms of sale in making his remittance.
- When a product is sold on a deferred payment plan, no member of the Industry shall allow a period to elapse after delivery of said product before interest on such deferred payments begins to accrue.
- No member of the Industry shall ship or in any way deliver free goods of any kind to any customer. This does not refer to replacements due to defective material or inferior workmanship.
- No member of the Industry shall sell any article whatsoever. whether or not a product of this Industry, at less than its published price, for the purpose of influencing the sale of motor fire apparatus, and/or motor pick-up street sweepers.
- No member of the Industry shall advertise, make statements or inferences, which directly or indirectly reflect falsely
- upon the character, merchandise, policies, or financial standing of any competitor.
- Members of the Industry shall not encourage or permit lavish entertainment of a customer by their employees.
- No member of the Industry shall make any allowance to a customer for alleged but not actually defective merchandise, alleged but not actual shortages, or for adjusting alleged but unfounded complaints ot any kind.
- No member of the Industry, or its representative or representatives, shall directly or indirectly offer or give any discount, gratuity commission, service or accessory to a customer or his agent for the purpose of inducing the customer or his agent to purchase the products of the Industry as defined herein. Nothing herein shall prevent conduct pursuant to any warranty of the manufacturer.
- SUNDRIES-INTERFERENCE WITH CONTRACTUAL RELATIONS
- Maliciously inducing or attempting to induce the breach of an existing oral or written contract between a competitor and his customer or source of supply, or interfering with or obstructing the performance of any such contractual duties or services.
- The Industry, subject to the approval of the Administrator, shall within thirty days following the effective date of this Code, determine a standard for trade-in allowances of used motor fire apparatus, and/or motor pick-up street sweepers, and the standard established shall be the basis of purchases of used motor fire apparatus, and/or motor pick-up street sweepers. Old apparatus, excepting motor pick-up street sweeers, taken in trade must be recovered from customer’s possession. In event of resale to same customer, it shall not be sold at less than the amount allowed on purchase of new equipment.
- No member of the Industry shall sell any product of the Industry below cost, which shall be determined on the basis of a uniform system of cost accounting to be developed by the Code Authority, subject to the approval of the Administrator.
Article VIII—Merchandising Plan
Each member of the Industry shall adhere to the terms of the following Merchandising Plan:
- Products.—The following products are subject to all of the provisions of this Merchandising Plan:
- All pumping engines.
- All types of chemical cars.
- All types of hook-and-ladder trucks.
- All types of aerial trucks.
- All types of water towers.
- All types of hose and squad cars.
- All types of service trucks.
- All other types of motor-propelled vehicles used for fireprotection service.
- Motor Pick-up Street Sweepers.
- Territory.—This Merchandising Plan applies on sales for shipment from members of the Industry’s factories, warehouses, and branches into all territory within the United States.
- Classes of Buyers.—The following are the principal classes of buyers in this Industry:
- Volunteer fire companies.
- Industrial concerns.
- State Governments and political subdivisions of same.
- U. S. Government.
- Prices.—Prices shall be established as determined individually by each member of the Industry.
- Terms.—Terms shall be as determined individually by each member of the Industry. However, the down payment in each case shall not be less than 33 1/3% of the purchase price and deferred payments shall not extend beyond a period of two years, excepting in the case of motor-pick-up street sweepers, in which case the down payment shall not he less than 25% of the purchase price and deferred payments shall not extend beyond a period of three years unless a motor pick-up street sweeper is sold on a lease plan, in which event the terms may be equal periodical payments extending over a period of not to exceed two years.
- Quantity Discounts.—Excepting for motor pick-up street sweepers, the maximum for quantity discounts shall be as follows: 2% for 2 pieces. 3% for 3 pieces. 4% for 4 pieces. 5% for 5 pieces. 6% for 6 pieces, 7% for 7 pieces, 8% for 8 pieces, 9% for 9 pieces. 10% for 10 or more pieces.
Note. “Pieces” referred to in “(a)” apply to units as defined in Paragraph (1).
- Cash Discounts.—Excepting for motor pick-up street sweepers, in addition to the quantity discounts a maximum discount of 5% may be allowed for cash sales, providing payment is made within 30 days from date of invoice.
Cash Discounts.—Cash discounts for motor pick-up street sweepers—a maximum discount of 2% may be allowed for cash sales, providing payment is made within 30 days from date of delivery.
- Standard Equipment Specification.—The Code Authority shall make recommendations to the Administrator as to what constitutes standard equipment. Upon approval by the Administrator, such specifications shall embody the standards for the Industry.
- Order and Contract forms.—Each member of the Industry, excepting manufacturers of motor pick-up street sweepers, shall sell according to contracts substantially similar to uniform forms of contract, to be prepared by the Code Authority as and when approved by the Administrator.
- This Code is hereby made expressly subject to the right of the President, pursuant to Section 10 (b) 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, and specifically, but without limitation, to cancel or modify his approval of this Code or of any conditions imposed by him upon such approval.
- It is contemplated that from time to time additions to or modifications of this Code will be submitted to the President by the Industry, as experience or changes in circumstances may indicate. Upon approval by the President, such additions or modifications shall become part of this Code.
Article X—Monopolies, etc.
- Nothing herein contained shall be construed or applied so as to:
- Promote monopolies or monopolistic practices.
- Eliminates, oppress, or discriminate against small enterprises.
Article XI—Price Changes
- Upon approval of this code by the President, each member of the Industry shall immediately file in the office of the secretary of the Association, a complete schedule of his prices and terms of sale then in effect on all motor fire apparatus and motor pick-up street sweepers, as defined in Article II of this Code.
Sufficient copies of such price schedules shall be filed to enable the secretary to distribute the same to all members of the Industry. The secretary shall distribute copies of such price schedules to each member of the association and to each nonmember of the association who has assented to the code and has agreed to bear his reasonable share of the expenses of the administration of the code as provided in Section 4 of Article VI of this code. Upon the request of any other member of the industry for copies of such price schedules, the secretary of the Association shall furnish copies thereof to such applicant at a charge therefor not exceeding the actual cost of copies furnished plus postage.
- No member of the Industry shall sell any motor fire apparatus or motor pick-up street sweeper at prices lower or on terms more favorable than the prices and terms in such filed schedules, unless a revised schedule is first filed by him as hereinafter provided.
- Each member of the Industry may file a revised schedule of prices and terms of sale with the secretary of the association, to take effect within not less than fifteen (15) days after the date of filing such revised schedule. Upon the filing of such revised schedule by such member, the secretary of the association shall immediately notify all other members of the Industry of such change. Thereupon, all other members of the Industry may file revised schedules of their prices and terms of sale, which, if filed prior to the effective date of the revised schedule first filed, shall take effect upon such effective date.
- The secretary of the association shall distribute to all members of the association and to all other members of the Industry who have assented to the code and agreed to bear their reasonable share of the expenses of administration of the code, copies of all such revised schedules. Upon request of any other member of the Industry, the secretary shall furnish such applicant with copies of such revised schedule at a price not exceeding the actual cost thereof plus the postage.
- The price system herein prescribed shall apply to prices of all products of the Industry.
- The operation of the foregoing provisions shall be at all times subject to the approval of the Administrator.
If any member of this Industry is also a member of another Industry the provisions of this Code shall apply to and affect only that part of his business which is included in this Industry.
Article XIII—Effective Date
This Code shall become effective on the day after its approval by the President.