Registry No. 1304--1--02
(r r ,8
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR, COllflE'JITION
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRIINTING. OFFICE
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 centa
; ~ :i
COMPRESSED GIR I'DU~S'IRY
As APPROVED ON Ot(OABF/ 11 198L
This publiacatd is for salp by thqilsu rintendent of Documents, Government
Printing OdiSce,tj'Wshington, D.C., andb district offices of the Bureau of Foreign
and Domestic C my pfe.r\ DPRMN FCW1EC
DISTRICT OFFICE S ,OP EDATENOFOMEC
Atlanta, Ga.: 501 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.: Buite 1706, 201 North Wiells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mlich.: 2213 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
K~ansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: Room 405, 421 West Market Street.
M\emphis, Tenn.: 266 South Water Street.
Minneapolis,-M~inn. : 213 Federal Building.
New Orleans, La.: Room 225-A, Ouatomqhous~e.~~~~*
New York, N.Y.: 734 Custombouse. ~ iii~~ii
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: Room 812, 20 Bou IriB~fd`e t ,fj.Y
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office ~Building.
St. Louis, M~o.: 506 Olive Street.. *
San Francisco, Calif.: 310 Custombouse.
Seattle, Wash.: 1406 Vance Buildithy"''''"~
CODE OF FAIR COMPETITION
COMI\PRESSED Axa 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 Compressed Air Inidustry, andi hearingsD
having been held thereon and the: Administrator having rendered
his report containing an anazlysis of the said Code of Fair Comnpeti-
tion, together with his recomimendations and- findings with respect
thereto, and the Administrator having found that the said Code
of F~air Competition complies in all respects ws~ith the pertinent pro-
visions of Title I of said Act and that thle requirements of clauses (1)
and. (2) of subsectioni (a) of Section 3 of the said Act have been
NOW, THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in mne by Title I
of the National Industrial Recoveryv Act,! approved June 16, 1933,
and otherwise, do adlopt anid a approve the report, recomnmendat ions,
and findings of the Admninistrator andi do order that the said Code
of Fair Comnpetition be and is hereby approved.
FRANKLIN D. ROOSEV'ELT.
THE \VHITE HOUSE,
Octoberl 11, 103J.
App'roval recommended :
HUGH S. JoHNSON,
THE PRESIDENT, OTBR9 98
Tlhe Wh'Iite House, Washinzgton, D.O. '
Mr DEAR MR. PRESIDENT: I havO the honor to submit and recom-
mend for your approval, the Code of Fair Competition for the
Compressed Air Industry.
The following dlocumnents are included or attached:
1. Executive Order
2. Rprt of Deputy Administrator
3. Idtrial Advisory Board Approval
4. Labor Advisory Board Approval
5. Consumers' Advisory Board Approval
6. Legal Division Approval
7i. Research and Planning ALpproval
8. Research and Planning Report (Statistical)
9. Original Letter of Transmittal from Industry
10. Assent of Industry
11. Notice of Hearing
12. Authorization of Code Committee to Act
13. List of Witnesses
14. Constitution and By-Laws of Association
15. Transcript of Hearing
An analysis of t~he provisions of the Code has been made by the
Ad mi nist ra tor. I find that the Code complies with the requirements
of the National Industrial Recovery Act.
I am, my dear M~r. President,
Very sincerely yours,
Henan S. JoHNsoN,
CODE OF FAIR COMPETITION FOR THE COMPRESSED AIR
ARTICLE I -FURPOSE
To effectuate the policy of Title I: of the National Industrial Re-
covery Act,_ t~he followng; provisions are submitted as a Code of
fair competition for the Compressed Air Industryv, and upon ap-
proval by the President shall be the standard of fair competition
for this Industry.
The term compressed air industry as used herein is defined to
mean t~he manufacture for sale of air and gas compressors (requir-
ing more than 10 H.P.), reciprocating vacuumn pumps and pneumatic
machinery and.'or parts thereof other than refrigeration equipment..
The term "L person as used herein shall include but. wFithout limnita-
tion natural persons, partnerships, associations, trusts, trustees, trus-
tees in bankruptcy, receivers, and corporations. T'he terml "emn-
ployer as used herein shall include every person actively engaged
In the manufacture for sale of the products of the comnpressed- air
industry as herein defined. The term "' effective date '! as used herein
is defined to be the eleventh dlay after this Code shall have been ap-
proved by the President of the United States.
This Code is- presented by COMPRESSED AIR INSTITUTE a2
Trade association, all the members of which are engaged in thie manu-
facture for sale of the products of the compressed air industry as
herein defined, in association with Manchinery andi Allied Products
SInstitut~e, of which Compr~essed Air Institute is a constituent member.
6 As required by Section 7 (a) of Title I of the National Industrial
Recovery 'Act, it is hner~eby provided:--
"' 1. That 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
labrorther gets, intedesignation of such representatives or in
~self-organizationI or m other concerted activities for the purpose of
collective bargaiinin or other multual aid or protection:
~ 2. That no em ployee and no one seeking employment shall be re-
quired as a condition of employment to jomn anly company unioneor
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
3. That employers shall comply with the maxhnum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President."
(a) On and after tlhe effective date no employer shall employ any
one under the age of 16 years; provided, however, that where a state
law provides a higher minimum age, no person below the age speci-
fled by such state law shall be employed within that state.
(b) On and after the effective date the minimum wage that shall
be paid by any employer to any unskilled employee engaged in the
production of the products of the compressed air industry and in
labor operations directly incident thereto shall be 40 cents per hour,
unless the rate per hour for the same class of labor on July 15th,
1929, was less than 40 cents, in which case the rate per hour paid shall
be not less than the rate per hour paid on July 15th, 1929, and pro-
vided, that in no event shall the rate per hour paid be less than 35
cents, and provided also that learners (other than apprentices as de-
fined in paragraph (d) of this Article V) may be paid not less than
80 percent of such minimum wage but the total number of learners
shall not exceed 5 percent of the total number of employees covered
by the provisions of this paragraph (b) and provided, further, that
after three months of work learners shall be paid not less than the
minimum wage herein provided.
(c) On and after the effective date the minimum wage that shall
be paid by any employer to all employees other than those engaged
in the production of the products of the compressed air industry and
in labor operations directly incident thereto shall be at the rate of
$15 per week, whether calculated on an hourly, weekly, monthly,
piece-work, or any other basis in accordance with the usual custom
of the employer, provided, however? that office boys or girls may be
paid not less than 80 percent of such minimum wage, but the total
number of such office boys or girls shall not exceed 5' percent of the
total number of employees covered by the provisions of this
(d) Nothing in this Article V shall apply to, or affect a. bona-fide
apprentice employed under a system or course of training which,
when completed, will make the apprentice a skilled mechanic.
(e) Not later than 90 days after the effective date each employer
in the compressed air industry shall report to the Administrator
through the Supervisory Agency, hereinafter provided. for, the
action taken by such employer in adjusting the hourly wage rates for
all employees receiving more than the minimum rates provided in
paragraph~ (b) of this Article V, but receiving less than $35 per week
of regular work period.
ARTICLE YT- HOURS
On a~nd after t~he effective date no employer shall employ any em-
Playree except executives, administrative, supervisory, and technical
employees and their respective staffs, who are paid at the rate of
$35 or more per week, traveling, sales and service employees, watch-
men, and firemen, in excess of 40 hours per weekr, provided, however,
t~hat these limitations shall not apply to conditions of seasonal or
peak demand which create an unusual and temporary burden for
production or installation; in such special cases such number of hours
may be worked as are required by the necessities of the situation,
but not to exceed 48 hours per week for any 6 weeks in any calendar
6 months' period; and provided further, that these limitations shall
not apply to employees on emergency, mPaint~enance, or repair work,
or to very special cases where restriction of hours of highly skilled
workers would unavoidably reduce or delay production. Where in
any case an employee whose hours of work are herein specified (other
than salaried employees) shall work in excess of 8 hours per day at
least time and one third shall be paid for the excess hours worked.
ARTICLE 711- A.DMINISTRATION
Compressed Air Inst~itute is hereby designatbed an agency for pro-
moting the performance of the provisionss of this Code by the mem-
bers of the compressed air industry; provided, however, that. no in-
equitable restrictions upon membership in such Institute shall at any
time be imposed.
With a. view to keeping the President of the United States
and the Administrator informed as to the observance or non-obsery-
ance of this Code, and as to whether the compressed air industry
is taking appropriate steps to effectuate in all respects the declared
policy of the National Industrial Recovery Act,! eachi employer shall,
when required by the Supervisory Agency, prepare and file with
ucllh person or norganizat~ion als thep Sulpervisor Age~ncy may desig-
nate, an earnings statement and balance sheet in a form prescribed
by the Supervisory Agency. Each employer shall likewise prepare
and file with such person or organization as the Supervisory Agrency
may designate and at such times and in such manner as mnay be
prescribed, statistics of plant capacity, volume of production, vol-
ume of sales in units and dollars, orders received-, unfilled orders,
stocks on hand, inventory, both raw and finished, number of em-
ployees, wage rates, employee, earnings, hours of wor~k, and such
other data or information as the Supervisory Agency may from
time to time require. In addition t~o information required t~o be
submitted to the Supervisoryv Agency, there shall be fur~nishedl to
Government agencies such statistical information as the Admlinis-
trator may deem necessary for t~he purpose recited in Sectioln 3 (a)
of the National Industrial Recovery Act..
ARTICLE VIII SUTPERVISORY AGENCY
To administer and supervise, and t~o facilitate the enforcement of
the provisions of, this Code there shall be a committee of five mem-
bers connected wit~h the compressed air industry called the Super-
visory Agency. The President or the Administrator may appoint
not more than three additional members without v~ote. The comn-
mittee shall be elected at, a meeting of employers called immediately
after the approval by the President of this Code and held imme-
diately prior to the effective date ther~eof. The meeting shall be
called by Compressed Air Institute, and notice thereof shall be sent
by telegraph and registered mail to all known manufacturers~in the
compressed air industry. The notice shall specifically state that vot-
ing at the meeting may be in person or by proxy. The members of
the committee shall be elected by a vote of the employers present
in person or by proxy at such meeting passed in two ways:
(a) One member, by a majority vote of employers present in
person or by proxy as such and
(b) Four members, by a 51%~ vote by employers present in person
or b~y proxy weighted on the basis of one vote for each $50,000 of
sales of products of the industry made in the calendar year 1932 as
reported to the Secretary of Compressed Air Institute, but each em-
ployer shall have at least one vote. MIembers of the Committee to
fill vaneancies due to death or resignation or because a member
thereof has ceased to be connected with the industry shall be elected
at meetings of employers called by Compressed Air Institute on at
least ten (10) days notice by registered mail' sent to all known manu-
facturers in the compressed air industry. At such meetings the vote
shall be taken in the manner hereinabove described.
If formal complaint is made to Compressed Air 'Institute or to
the Supervisory Agency that t.he provisions of this Code have been
violated by any employer, the supervisory agency or the proper
supernisory committee hereinafter provided for shall make such
investigation as in its opinion is necessary.
AlRTICLE IXY-STerisrICS CONFIDENTIAL
Except as otherwise provided in the National Industrial Recovery
Act, all statistics, data, and information filed in accordance with
the provisions of Article VII shall be confidential; and the statistics,
data., and information of one empl~toyer shall not be revealed to any
other empgloyer, except that for he purpose of facilitating the ad-
ministration and enforcement of the provisions of this ICode the
Supervisory Agency, by their duly authorized representatives (who
shall not be in the employ of any employer affected by this Code),
and the Administrator shall have access to anyI and all statistics,
data, and information that may be furnished in accordance with
the provisions of this Code.
ARTICLE X--OPEN TO ALL EMIPLOYERS
Any member of the compressed air industry is eligible for mem-
bership in t~he Compressed Air Institute. Any employer shall be
entitled to vote on and share in the benefits of the activities of the
Supervisory Agency, and may participate in any endeavors of Com-
pressed Air Institute in the preparation of any revisions of or addi-
tions or supplements to this Code byv accepting his proper pro rata
share of the reasonable cost of creating and administering it, as
determined by the Supervisory Agency.
AlRTICLE XI--ACCOUNTINGI AND COSTINGX
Every employer shall use an accounting system which conforms
to the principles of and is at least as detailed and complete as the
arniform and standard method of accounting and the uniform and
standard method of costing to be formulated. or approved by the
Supervisory Agency, with such variations therefrom as may be
required by the individual conditions affecting any employer or
group of employers and as may be approved by the Supervisory
Agency and made supplements to said formulated or approved
methods of accounting and costing.
ARTICLE XII -No SELLING BELOW ClOST
No employer shall sell or exchange any product of his manufac-
ture at a price or upon terms or conditions that. will result in the
customer paying for the goods received less than the cost to the seller,
determined in accordance with the uniform and standard method
of costing hereinabove prescribed, provided, however,
1. That inventories which must be converted into cash to meet
emergency needs, dropped lines or seconds, may be disposed of in
such manner and. on such terms and conditions as the proper super.
visory committee may approve and as are necessary to move such
products into buyers' hands, and provided, further,
2. That selling below cost in order to meet existing competition
on products of equivalent design, character, quality, o~r specifica-
tions shall not be deemed a violation of this Article if provision
therefore is made in supplemental Codes for any branch or sub-
division of the industry, which may be hereafter prepared and duly
approved by the President.
ARTICLE XIII--PIUCE LISTs
If the Supervisory Agency determiines that in any branch or
sub-division of the compressed air industry it has been the generally
recognized practice to sell a specified product on the basis of prmnted
net price lists, or price lists with dliscount sheets and fixed terms of
sale and payment, each mlanufacturer of such product shanll within
ten (10) days after notice of such determination file w\ithl the Suiper-
visory Agency a net price list or a price list and dliscount sheet, as
the case may be, individually pr~eparedl by him, showinga his current
prices, or prices and discounts, and terms of sale and payment, and
the Supervilsory Agency shall immediately send copies thereof to all
known manufacturers of such specified product. Revisedl price list
and 'or discount sheets may be filed from time to time thereafter wit~h
the Supervisory Agency by any manufacturer of such product, to
become effective upon the date specified therein, but such revised
price lists and/or discount sheets shall be filed with the Supervisory
Agency twenty (20) days in advance of the effective date, unless
the proper Supervisory C~ommitte shall authorize a shorter period.
Copies of such revised price: lists and .'or discount sheets with notice
of t~he effective date specified, shall be immnediately sent to all known
manufacturers of such product, who thereupon may file, to become
effective upon the date when the revised price list and.'or discount
sheet first failed shall go into effect, revisions of their price lists and/'or
discount sheets establishing prices or prices and discounts not lower
than those established in the revised price lists and,'or discount sheets
If the Supervisory Agency shall determine that in any branch or
subdivision of the compressed air industry not now selling its~prod-
uct on the basis of price lists, with or without discount sheets, with
fixed terms of payment, the distribution or marketing conditions in
said branch or subdivision are the same as or similar to the distribu-
tion or marketing conditions in a branch or subdivision of the in-
dustry where the use of price lists, with or without discount sheets,
is well recognized, and that a system of selling on net price lists or
p rice lists and discount sheets with fixed terms of payment should
be put into effect in such branch or subdivision, each manufacturer
of the product or products of such branch or subdivision shall within
twenty (20) days after notice of such determination file with the
Supervisory Agency net price lists or price lists and discount sheets,
containing fixed terms of payment, showing his prices and discounts
and terms of payment, and such price lists and/or discount sheets
may be revised in the manner hereinabove provided.
T'he Supervisory Agency shall have power on its own initiative or
on the complaint of any employer to investigate any price for any
product shown in any net price list or price list with discount sheet
filed with the Supervisory Agency 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 the Supervisory Agency shall deem necessary
or proper for such purpose. If the supervisory Agency after such
investigation shall determine that such price is an unfair price for
such product, having regard to the cost of manufacturing and selling
such product, and th-at the maintenance of such unfair price may re-
sult in unfair competition in the industry and be contrary to the
spirit of the National Industrial Recovery Act, the Supervisory
Agency may require the employer that filed the list or discount sheet
in which such unfair price is shown to 61le a new list or discount sheet
showing a fair price for such product, which fair price shall become-
effective immediately upon the filing of such list or discount sheet.
If such employer shall not within ten (10) days after notice to it
of such determination by the Supervisory Agency file a new list or
discount sheet showing such fair price for such product, the Super-
visory Agency shall have power to fix a fair price for such product,
which fair price, however, shall not be more than the price of any
other employer at that time effective for such product, and in respect
of which the Supervisory Agency shall not theretofore have begun an
investigation or a complaint shall not have been made by any em-
ployer. WChen the decision of the Supervisory Agency fixing such
fair price shall have been filed with the Secretary of Compressed Air
Institute and the Secretary shall have given notice thereof to such
emplyer suh fir rice shall be the price for such employer for
suchplyroduct until shall have been changed as in this Code
No employer shall sell directly or indirectly by any means what-
soever, any product of the industry covered by the provisions of this
AQrticle at a price lower or at discounts greater or on more favor-
able terms of payment than those provided in his current net price
lists or price hists and discount sheets. The operation of this Arti-
cle XIII shall at all times be subject to review by the Administrator.
8anwran~E XIV--Dzerninvrons REBALES
No employer shall cooperate in the violation of this Codeb
selling to or through any distributor who does not agree to rsl
only in accordance with the provisions of this Code. This Article
shall be in effect until the approval by the President of a Code for
ARTICLE XV--EXPORT SALES
The provisions of this Code concerning sales shall not apply to
direct export sales of any product, or to sales of any produIct destined
ultimately for export, or to sales of parts used in the manufacture
of products for export. The term "L export shall include shipments
to foreign countries and to the territories and possessions of the
ARTICLE XVI--INDUSTRY GnourS
Aggregations of employers having a com-nmon interest and common
problems will be grouped by Compressed Air Institute for adminis-
trative purposes in various sub-divisions or product classifications
and report of such groupmng made to the Ad min ist rator. In each
sub-division or product .classification there will be a supervisory
committee appointed by the Supervisory Agency and report ther~eouf
made to the Administrator.
ARTICLE XZVII STaTUs PRIOR To EFFECTIVE DA~TE
Prior to its approval by the President, applicant may at any time
change or modify any provision of this Code (except those pr~ovisions
required by Sections 7 (a) and 10 (b) of the Act), or may withdraw
The applicant, will not be deemed to h~ave consented to any change
or modification of this Code which may be effected by the President's
order of approval, uinless such change or modifient'ion is submitted
to the applicant and consented to by the applicant.
ARTIcLE XIVIII-RIGIITS OF PRESIDENT
The President may from time to time cancel or modify any order,
approval, license, rule, or regulation issued under Title I of the
National Industrial Recovery Act.
ARTIcLE XIX-AMENDMLENTS AND ADDITIONS
Such of the provisions of this Code as are not required by the
National Industrial Recovery Act to be included herein may, with
the approval of the President of the United States, be modified or
eliminated as changed circumstances or experience may indicate.
This Code is intended to be a basic Code, and study of the trade
practices of the compressed-air industrywl ecniudb h
Executive Conmmittee of Compressed Air Intiue wonithedb the itn
UNIVERSITY OF FLORIDA
8: 3 1262 08584 1921
tion of submitting, from time to time7,it, the A~dministrator fo
approval additions to or revisions of this Code applicable to a~l:;li
employers in the compressed-a~ir industry andissipplemental Codes,~..
applicable to one or more branches or subdivisionsr ojrl product chis-
sifications of the compressed-air industry, suchsppentloes
however, to conform to and be consistent with the pr~ovunions d.~i i
Code as now constituted or hereafter changed.
ARTICLE XX--SEGREGATION OF INDUSTRY
If any employer of labor in the compressed-air industry is also a~n i;
employer of labor in any other industry, the provisions of this -Code'-,:l:j t
shall apply to and affect only that part of his business which is :
included in the compressed-air industry.
....~~ ~ ;;
" ''"'.ll.i ::i;i'iii