Registry No. 1150-02
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JULY 26, 1934
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Approved Code No. 155-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
As Approved on July 26, 1934
APPROVING AMENDMENTS OF CODE OF FAIR COMPETITION FOR THE
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 amendments
to a Code of Fair Competition for the Oxy-Acetylene Industry, and
hearings having been duly held thereon and opportunity to object
having been given and the annexed report on said amendments con-
taining findings with respect thereto having been made and directed
to the President:
NOW, THEREFORE, on 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 EExecutive Order No. 6543-A, dated December
30, 1933, and otherwise, do hereby incorporate by reference. sai:l
annexed report and do find that said amendments and the Code as
constituted after being amended comply in all respects with Ihi.
pertinent provisions and will promote the policy and purposes of
said Title of said Act, and do hereby order that said amendments
be and they are hereby approved, and that the previous approval of
said Code is hereby modified to include an approval of said Code
in its entirety as amended, provided that said amendments and this
Order shall become effective on the fifth day after the date hereof.
HUGH S. JOHNSON,
Admifnistrator for Industrial Recovery.
GEO. L. BERRY,
July 2', 1934.
76182-- 829-144- 34
REPORT TO THE PRESIDENT
The lWhite How e.
SIR: This is a report on the proposed amendments to the Code of
Fair Competition for the Oxy-Acetylene Industry as approved by
you on December 15, 1933. The public hearing on all but one of
these amendments was held in the City of Washington, D. C. on
May 15 and 16, 1934. The additional amendment was filed subse-
quent to this hearing and a notice of opportunity to be heard was
published on June 29, 1934. Full opportunity was given to all
interested parties to appear or to be heard.
The purposes and effects of the amendments on which the public
hearing was held are as follows:
Amendment No. 1 revises the definition of member of the In-
dustry to clarify same and amendment No. 2 eliminates the defini-
tion of member of the Code which is unnecessary.
Amendment No. 3 adds definitions for reseller" and consumer ",
terms used in subsequent amendments.
Amendment No. 4 exempts from the maximum hours provisions
employees working in a technical capacity, who receive more than
$35.01) per week. This is because the operation of plants frequently
depends on the work of employees of a technical capacity.
Amendment No. 5 changes the method of election of the Super-
vising Agency. It provides that five out of ten members of the
Supervising Agency shall be elected on a basis of dollar volume of
the business and that the other five members shall be elected by
equal votes cast by units of the Industry.
Amendment No. 6 deletes Section 4 of Article VI as the subject
matter of this section is covered in andmdment No. 5.
Amendment No. 7 merely changes the designation number of Sec-
tion 5 of Article VI.
Amendment No. 8 provides for the appointment of a Trade Prac-
tice Committee in accordance with Administration policy.
Amendment No. 9 enables the Supervising Agency to incur such
reasonable obligations as are necessary for the administration of the
Code. It requires that the Supervising Agency submit for approval
of the Administrator an itemized budget and an equitable basis of
pro-rating the assessments to be collected from the members of the
Industry. Payment of an equitable contribution to the expenses of
the Supervising Agency by members of the Industry is made manda-
tory by this amendment if their principal line of business is covered
by this Code.
Amendment No. 10 chances the designation by number of Article
VII to Article VII-A, Tra e Practices-General Provisions.
Amendment No. 11 applies to Section 3 of Article VII (to be Ar-
ticle VII-A) and provides two optional methods of calculating
rental. The Code as approved did not contain any specification as
to the method of calculating rental.
Amendment No. 12 pertains to Section 4 of Article VII (to be
Article VII-A) and provides that the price to be charged for all
gases sold may be an f.o.b. freight station price as well as an f.o.b.
plant or warehouse price. This amendment is of benefit to the con-
sumer because when shipments are made by rail no charge is made
for delivery of the goods from plant or warehouse to the freight
Amendment No. 13 is a revision of Section 8 of Article VII (to be
Article VII-A). It exempts medical gases sold on a gallonage basis
for medical use only from the application of Sections 3, 4, G and 11.
Amendment No. 14 places in the Code as Section 9 of Article VII
(to be Article VII-A) the standard bribery trade practice provision.
Amendment No. 15 provides as a new Section 10 of Article VII
(to be Article VII-A) for the prohibition of lending, leasing or
giving away of apparatus under certain conditions. This provision
represents a compromise of different provisions proposed, by two
factions of the Industry, namely, those manufacturers interested in
the manufacture and sale of gas and apparatus and those interested
in the manufacture and sale of apparatus only. Because of the con-
troversial nature of this provision the Supervising Agency voted at
their meeting on June 6 and 7, 1934, to postpone action on same.
An agreement was reached later and eight out ten members of the
Supervising Agency have assented, one member not voting.
Amendment No. 16 places in the Code a new Section 11 of Article
VII (to be Article VII-A) pertaining to agreements between mem-
bers of the Industry and resellers of gas. It is required that re-
sellers of gas are bound in the handling of such products to comply
with the provisions of Sections 1, 3 and 4 of Article VII (to be
Article VII-A), provided, however, that. nothing in this section shall
be construed to mean that resellers of gas are bound to file the same
rental or delivery charges filed by any member of the Industry.
There are no provisions in the Code concerning the prices at which
the products of the Industry are sold nor does it include any provi-
sion for the open filing of prices. All resellers of gas received a
notice of the public hearing and all objections were met in revising
the provision as proposed for approval.
Amendment No. 17 creates Article VII-B and provides trade
practice provisions, which are self-explanatory, for the medical gas
division of the business.
Amendment No. 18 changes the term "members of the Code"
wherever used in the Code as approved to read members of the
The purpose and effect of the amendment which was submitted
subsequent to those on which the public hearing was held is as
Amendment No. 19 places in the Code a new Section 12 of Article
VII (to be Article VII-A) and provides, in connection with con-
tracts in effect prior to the effective (late of the Code, that the trade
practice provisions contained in Sections 3. 4 and 5 of Article VII
(to be Article VII-A) shall not apply if they were not specified in
such contracts but that said provisions shall apply with respect to
extended or renewal periods of any such contract when extended or
renewed by a member of the Industry. This amendment clears up a
difficulty which the Industry has experienced in connection with con-
tracts which were in effect prior to the effective date of the Code.
The Deputy Administrator in his final report to me on said amend-
ments to said (ode having found as herein set forth and on the
basis of all the proceedings in this matter:
I find that:
(a) The amendments to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of
the National Industrial Recovery Act including the removal of ob-
struct.uns 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 of labor and management under adequate gov-
ernmental sanction and supervision, by eliminating unfair competi-
tive practices, by promoting the fullest possible utilization of the
present productive capacity of industries, by avoiding undue restric-
tion of production (except as may be temporarily required), by in-
creasing the consumption of industrial and agricultural products
through increasing purchasing power, by reducing and relieving un-
cnemployment, by improving standards of labor, and by otherwise
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
.Iub-seection (a) of Section 3, sub-section (a) of Section 7 and sub-
sect:on (b) of Section 10 thereof.
(c) The National Oxygen and Acetylene Ass.ociation was and is an
industrial ass nl.:'ation truly representative of the aforesaid Industry
anll that saihl association imposed and imposes no inequitable restric-
tions on admission to membership therein and has applied for these
(d) These. amendments and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) These amendments and the Code as amended are not designed
to and will not eliminate or oppress small enterprises and will not
operate to discriminate, against them.
(f) Tho.-e 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, these amendments have been approved.
R HUGH S. JOHNSON,
JULY 26, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE OXY-ACETYLENE INDUSTRY
AMENDMENT 1. In Article II-Definitions: For the present para-
graph defining member of the Industry substitute the following:
The term member of the Industry as used herein includes, but
without limitation, any individual, partnership, association, corpora-
tion or other form of enterprise engaged in the Industry, either as an
employer or on his or its own behalf."
AMENDMENT 2. In Article II-Definitions: Delete the paragraph
defining member of the Code."
AMENDMENT 3. In Article II-Definitions: Immediately following
definition of member of the Industry insert the following two
"The term 'reseller' as used herein includes any person, firm or
other form of enterprise, selling under the name and trademark of
another, any product of the Industry.
"'The term 'consumer' as used herein means the user of any
product of the Industry as differentiated from the reseller."
AMENDMENT 4. In Article III-Hours, Section 1, Line 5: Delete
the word or" and insert between the words executive and
"capacity" the words "or technical." Also add to Section 1 the
The exception of employes in a technical capacity is not to
include any skilled operating employes or draftsmen."
As so modified said Section will read as follows:
SECTION 1. On and after the effective date employers in the
Industry shall not operate on a schedule of hours of labor for any
of their employees (except any person employed as a salesman,
engineer, fireman, loader, truck driver, or watchman, or employed in
a managerial, executive or technical capacity and receiving more
than $35.00 per week) in excess of an average of forty (40) hours
per week over any period of six (6) weeks, or in any event more
than forty-eight (48) hours in any one week. The exception of
employees in a technical capacity is not to include any skilled
operating employes or draftsmen."
AMENDMENT 5. In Article VI-Administration: Substitute for
the present Section 1 the following:
SECTION 1. This Code shall be administered by a Supervising
Agency of ten (10) persons chosen and elected by the members of
the Industry as follows:
"(a) At an election wherein each member of the Indusitry having
a net. sales volume of products of the Industry of $100,000.00 or
less per annum shall be entitled to one vote and ench member of
the Industry having a net sales volume in excess of $100.000.00 per
annum shall be entitled to one vote with respect to $100,000.00 of
such sales volume and one vote with respect to each $200,000.00 or
fraction thereof that such sales volume shall be in excess of $100,-
000.00, five (5) members of the Supervising Agency may be elected
and the five (5) individuals receiving the greatest number of votes
at such election shall become members of the Supervising Agency.
"(b) At an election wherein each member of the Industry is
entitled to cast one vote, five (5) members of the Supervising Agency
shall be elected.
"(c) The members of the Agency so elected shall serve for the
period of one year from the date of their election or until their
successors are elected and qualified.
b"(d) In the event of the death or resignation of a member of the
Supervising Agency, his successor shall be elected in the same man-
ner as the retiring member.
"(e) No affirmative action can be taken by the Supervising Agency
unless seven (7) members thereof vote in favor of such action.
"(f) In addition to the membership as above provided, there may
be not more than three (3) members, without vote and without
compensation from the Industry, to be known as Administration
fMembers to be appointed by the Administrator to serve for such
terms as iie may specify.
"(g) The provisions for a Supervising Agency as contained in
Section 1 of Article VI as originally adopted in this Code shall
remain in force and effect until the election and qualification of a
Supervising Agency in accordance with the foregoing provisions."
AMENDMENT 6. In Article VI-Administration: Delete Section 4.
AMENDMENT 7. In Article VI-Administration: Amend Section 5
to designate the same Section 4, in view of the elimination of Section
4 reported above, numbered 6.
AMENDMENT 8. In Article VI-Administration: Add a new sec-
tion to be numbered Section 5 and to read as follows:
SECTION 5. The Supervising Agency shall appoint a Trade Prac-
tice Committee which shall meet with the Trade Practice Commit-
tees appointed under such other Codes as may be related to the
Industry for the purpose of formulating fair trade practices to
govern the relationships between members of the Industry under
this Code and members of other industries under such other Codes
to the end that such fair trade practices may be proposed to the
Administrator as amendments to this Code and such other Codes."
AMENDMENT 9. In Article VI-Administration: Substitute for the
present Section 6 the following:
SECTION 6. (A) It being found necessary in order to support the
administration of this Code and to maintain the standards of fair
competition established hereunder and to effectuate the policy of
the Act, the Supervising Agency is authorized:
"(1) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code;
(2) To submit to the Administrator for his approval, subject
to such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support the budget shall be contributed by members of the
(3) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable con-
tribution as above set forth by all members of the Industry, and to
that end, if necessary to institute legal proceedings therefore in its
(B) Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Supervising
Agency, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Admini.tratr.
Only members of the Industry complying with the Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided, (unless duly exempted from making such contribution) shall
be entitled to participate in the selection of members of the Super-
vising Agency or to receive the benefits of any of its voluntary activi-
ties or to make use of any emblem or insignia of the National
(C) The Supervising Agency shall neither incur nor pay any
obligation in excess of the amount thereof as estimated in its ap-
proved budget, except upon approval of the Administrator; and no
subsequent budget shall contain any deficiency item for expenditures
in excess of prior budget estimates except those which the Admlin-
istrator shall have so approved."
AMENDMENT 10. Change the designation of Article VII-Trade
Practices, to Article VII-A-Trade Practices-General Provisions.
AMENDMENT 11. In Article VII, to be Article VII-A: In Section 3,
change the semicolon at the end of said section to a period, and add
Such rental may be calculated (a) by the "Numerical Sy.tem ",
i.e., a computation for each individual cylinder, or (b) by the Cylin-
der Quantity method, i.e., a nmnthly computation based on the
number of days cylinders are retained by customers in exe.-s of thirty
(30) days, without regard to any individual cylinder. It shall not
be permissible to consolidate for rental computation purposes the
cylinder records of any given customer having more than one receiv-
ing point, except for such points as are strictly temporary in char-
acter and/or where customer's receiving points are so near to each
other that the interchange of cylinders naturally and commonly
AMENDMENT 12. In Article VII, to be Article VII-A: In Section
4, after the word warehouse insert the words "or freight station
at the point of origin of shipment." and rearrange wording of clause
(1) to read as follows:
(1) a price f.o.b. plant, warehouse or freight station at the point
of origin of shipment;"
As so revised said Section 4 will read as follows:
SECTION 4. Failing to charge for all gases sold (1) a price f.o.b.
plant, warehouse or freight station at the point of origin of ship-
ment; (2) a delivery charge to be filed by each member of the In-
dustry with the Supervising Agency which shall be open to inspec-
tion by any member of the Industry, or otherwise interested party;"
AMENDMENT 13. In Article VII, to be Article VII-A: Revise Sec-
tion 8 to read as follows:
SECTION 8. Sections 3, 4, 6 and 11 of Article VII-A do not apply
to medical gases when sold on a gallonage basis for medical use
AMENDMENT 14. In Article VII, to be Article VII-A: Insert a
new Section 9 to read as follows:
SECTION 9. No member of the Indu'stry shall give, permit to be
given or directly offer to give anything of value for the purpose of
influencing or rewarding the action of any employee, agent or repre-
sentative of another in relation to the business of the employer of
such employee, the principal of such agent or the represented party,
without the knowledge of such employer, principal or party. Coi-
mercial bribery provisions shall not be construed to prohibit free and
general distribution of articles commonly used for advertising except
so far as such articles are actually used for commercial bribery as
AMENDMENT 15. In Article VII, to be Article VII-A: Insert a new
Section 10 to read as follows:
SECTION 10. Lending, leasing or giving away apparatus designed
to use oxygen or acetylene, or substitutes therefore, in cutting or
welding of metals by hand, as differentiated from automatic, semi-
automatic or electrically-powered apparatus or equipment or acces-
sories used therewith or manifolds or distributing systems.
This provision shall not apply to (a) railroad companies; (b)
other consumers with whom lending or leasing arrangements were
in effect prior to June 18, 1934, provided a record of such consumers
and evidence that such arrangements were in effect prior to said date
is filed with the Chairman of the Supervising Agency within fifteen
(15) days after the effective date of this modification; (c) competi-
tive situations caused otherwise than by a member of the Industry,
provided that full details shall be reported to the Chairman of the
Supervising Agency immediately following the execution of any
agreement made pursuant to this sub-section (c)."
AMENDMENT 16. In Article VII, to be Article VII-A: Insert a
new Section 11 to read as follows:
SECTION 11. All agreements between members of the Industry
and resellers of gases shall specify that the reseller is required and
bound in the handling of such products to comply with the provi-
sions set forth in the foregoing Sections 1, 3 and 4, provided, how-
ever, that nothing in this Section shall be construed to mean that
resellers of gas are bound to file the same rental or delivery charges
filed by any member of the Industry; and it shall also be mandatory
on members of the Industry either to require correction of any re-
ported infraction of such Sections by a reseller or to terminate its
agreement with such reseller within thirty (30) days after notice
from the Supervising Agency that such reseller has been guilty of
and has not corrected such infraction."
AMENDMENT 17. After the end of Artic'e VII, to be Article VII-A:
Insert a new Article VII-B-Trade Practices-Special Medical
Gna Provisions, to read as follows:
In addition to the trade practices set forth in Article VII-A,
the following practices in the manufacture and distribution of
medical gases constitute unfair methods of competition and are
SECTION 1. Consigning or storing products of the Medical Gas
Industry on property of any user or purchaser or prospective pur-
chaser thereof to be paid for as sold.
SECTION 2. Giving or lending any products or equipment or
other facilities in conjunction with the use of Medical Gases with-
out making adequate and proper charge thferefor, as an inducement
to obtain any competitor's business by contract or otherwise; pro-
vided, however, that this provision shall nto be construed to prohibit
the placing of equipment on trial or approval in good faith for a
period not to exceed thirty (30) days.
SECTIOn 3. Within sixty (60) days from the effective date of this
amendment each member of the medical gas division shall file a
schedule of monthly cylinder rental charges, individually prepared
by the members, with the Supervising Agency, which sc-hedule shall
take effect immediately upon being filed and shall be baned upon
the net value of cylinders outstanding at the end of each month
with an allowance of a normal free loan period without rental
charges of thirty days, which under no circumstances shall be ex-
tended beyond ninety (90) days.
Each schedule may be changed by filing with the Supervising
Agency revised schedule to take effect also immediately upon filing.
The Supervising Agency shall make such prices available to the
inspection by the public at its official place of business during usual
office hours. No member of the medical gas division shall charge
less for rental of cylinders than the rate set forth on a cylinder
rental charge schedule as filed with the,Supervising Agency, or
rebate such charge if justly made."
AMENDMENT 18. In Article IX, lines 8, 13 and 15, change the
term members of the Code" to read members of the Indutry."
AMENDMENT 19. In Article VII, to be Article VII-A: Add the
following Section 12:
SECTION 12. The provisions set forth in the foregoing Sections 3,
4 and 5 shall not be construed to require making or collecting charges
for or with respect to products of the Industry sold under contracts
in effect at the effective date of the Code, other than the charges
provided for in such contracts; provided, however, that the said
provisions shall apply with respect to extended or renewal periods
of any such contract extended or renewed by a member of the
Approved Code No. 155--Amendment No. 1.
Registry No. 1150-02.
UNIVERSITY OF FLORIDA
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