NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON AUGUST 28, 1934
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Approved Code No. 513
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Approved Code No. 513
CODE OF FAIR COMPETITION
COMMERCIAL AVIATION INDUSTRY
As Approved on August 28, 1934
CODE OF FAIR COMPETITION FOR THE COMMERCIAL AVIATION INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Indus-
trial Recovery Act, approved June 16, 1933, for approval of a Code
of Fair Competition for the Commercial Aviation Industry, and
hearings having been duly held thereon and the annexed report on
said Code, containing findings with respect thereto, having been
made and directed to the President:
NOW THEREFORE, on behalf of the President of the United
States, 1, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an-
nexed report and do find that said Code complies in all respects with
the pertinent provisions and will promote the policy and purposes
of said Title of said Act; and do hereby order that said Code of
Fair Competition be and it is hereby approved.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
WILLIAM P. FARNSWORTH,
Acting Division Administrator.
August 28, 1934.
83021'- 1044-134-- 34
REPORT TO THE PRESIDENT
The White House.
SIn: This is a report on the Code of Fair Competition for the
Commercial Aviation Industry as revised after a public hearing
conducted thereon in Washington, D.C. on July 10, 1934 in accord-
ance with the provisions of the National Industrial Recovery Act.
PROVISIONS AS TO WAGES AND HOURS
Maximum hours for employees are established as follows: Clerical
employees 40 hours per week, mechanics and mechanics' helpers 48
hours per week; wat.:nmen, caretakers and general field utility
employees not. more than 54 hours in any one week.
No employees shall be paid less than at the rate of $15.00 per
week in places of more than 50,000 population or in the immediate
trade area thereof or less than at the rate of $13.00 per week in
places of less than 50,000 population. Provision is made for an
equitable adjustment of wages above minimum.
Employment of any person under 16 years of age and anyone
under 18 years of age at occupations hazardous in nature or danger-
ous to health is prohibited.
In recommending the approval of the hour provision of this
Code, it has been necessary to recognize that this industry is pro-
viding a service to the public requiring 24 hours per day operation
throughout the year and activities are subject to interference by,
and to a certain extent dependent upon, weather conditions.
ECONOMIC EFFECTS OF THE CODE
This industry has experienced a serious curtailment of activity
since 1929 as indicated by the reduction in number of airplane hours
flown per annum reported in 1929 as 1,304,207 and in 1933 as 457,427.
Estimate of the Bureau of Air Commerce, Department of Commerce,
indicates the investment in commercial and private airports exceeds
The direct effect of this Code is found in the organization of an
hitherto unorganized industry towards the utilization of its full
productive capacity. Elimination of unfair trade practices and de-
structive competitive methods should increase public confidence in
the industry with consequent increase in volume of business.
The economic welfare of this industry, as an organized industry,
providing airports, training pilots and mechanics, and encouraging
private ownership of aircraft, is considered to be of importance to
the Nation in its defense and in its improvement of transportation
At the present time information is not available as to the extent
of the Commercial Aviation Industry but this Code will make avail-
able for the first time complete registration of the facilities and the
scope of this industry.
The Deputy Administrator in his final report to me on said Code
having found as herein setforth and on the basis of all the pro-
ceedings in this matter:
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
removal of obstructions to the free flow of interstate and foreign
commerce which tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by inducing and maintaining united action of labor and Rmanagement
under adequate governmental sanctions and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
utilization.of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor, and
by otherwise rehabilitating industry.
(b) Said industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associa-
tion is truly representative of the aforesaid industry; and that said
association imposes no inequitable restrictions on admission to
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, therefore, this Code has been approved.
HvGH S. JOHNSON,
WASHINGTON, D. C.,
August 28, 1934.
CODE OF FAIR COMPETITION FOR THE COMMERCIAL
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Commercial Aviation Industry, and its
provisions shall be the standard of fair competition for such indus-
try and shall be binding upon every member thereof.
ARnTICL II -DErINrrTONS
1. The term Commercial Aviation Industry as used herein
includes any and all nonscheduled, miscellaneous flying activities in
the aviation industry, as distinguished from scheduled point-to-
point air transportation as covered by the Code of Fair Competition
for the Air Transport Industry and manufacturing, as covered in
the Code of Fair Competition for the Aircraft Manufacturing
Industry; the operation and maintenance of airports; the operation
and maintenance of all types of aviation schools; the servicing,
maintaining, repairing, and storing of aircraft, engines, propellers,
parts, instruments, and, or accessories therefore, together with para-
chutes; the selling and/or distributing at wholesale or retail air-
craft, engines, propellors, parts, instruments, accessories, parachutes,
and other materials and services appertaining thereto, excluding sales
by the manufacturer of his own products at wholesale; and in addi-
tion thereto all other types of industries in the field of aviation not
included in the two Codles above mentioned, together with such
related branch s or subdivisions as may from time to time be in-
cluded under the provisions of this Code.
1. The term member of the industry includes, but without
limitation, any individual, partnership, association, corporation, or
other form of enterprise engaged in the Industry, either as an em-
ployer or on his or its own behalf.
2. The term employee as used herein includes any and all per-
sons engaged in the Industry, however compensated, except a member
of the Industry.
3. The term employer as used herein includes anyone by whom
such employee is compensated or employed.
4. The term "student as used herein includes anyone regularly
enrolled in a school of aviation for instruction. A student not
earning tuition is not to be considered an employee, even though
he may be performing work usually assigned to an employee. A
student earning his tuition in whole or in part is to that extent, to
be considered an employee.
5. The terms President ", "Act ", and "Administrator as used
herein mean, respectively, the President of the United States, Title
I of the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.
6. Population for the purposes of this Code shall be determined
by reference to the latest Federal Census.
SECTION 1. Maximum Hours.-No employee shall be permitted to
work in excess of forty (40) hours in any one week, nor more than
eight (8) hours in any one day, nor more than six (6) days in any
seven (7) day period, unless for hours worked in excess of eight (8)
hours per day or forty (40) per week, he is compensated by not less
than one and one-third times the normal rate of pay.
SECTION 2. Exceptions.-The following are excepted from the
hours provisions of Section 1 above:
(a) Mechanics, mechanics' helpers, and employes on emergency
maintenance or emergency repair work involving accidents endan-
gering life or property, provided that for hours worked in excess of
eight (8) hours per day, or forty-eight (48) per week, they shall be
compensated at least one and one-third times their normal rate of
(b) Watchmen, caretakers, and general utility field employes pro-
vided that they shall not work more than fifty-four (54) hours in
any week, unless in case of emergency, and then they shall be com-
pensated at not less than one and one-third times their normal rate
of pay for hours worked in excess of fifty-four (54) per week.
(c) Pilots, provided that they shall not work more than one hun-
dred (100) flying hours per month or as this clause may be modified
by the Administrator on recommendation of the Department of
(d) Persons employed in managerial, executive, professional
capacities, who regularly receive more than Thirty-five ($35.00)
Dollars per week.
SECTION 3. Employment by Several Employers.-No employer
shall knowingly permit an employee to work for any time which,
when totaled with that already performed with another employer or
employers, exceeds the maximum permitted herein.
SECTION 1. Minimrun WTages.-The minimum wage rate in this
Industry shall not be less than at the rate of fifteen ($15.00) dollars
per week in places of more than 50,000 population or in the immedi-
ate trade area thereof nor less than at the rate of thirteen ($13.00)
dollars per week in places of 50,000 population or less.
SECTION 2. Minimuntm Tage Rates by Locality./Occu.pation.-After
the approval of this Code, the Code Authority may present for ap-
proval to the Administrator, after notice and hearing, recommenda-
tions as to the upward adjustments in minimum wages for specified
regions/occupations in order to effectuate the purposes of the Act.
SECTIO 3. Wages above Mininm.un,.-There shall be an equitable
adjustment of all wages above minimum, and to that end, within
sixty (60) days from the approval of this Code, the Code Authority
shall submit for the approval of the Administrator a proposal for
adjustment in wages above the minimum. Upon approval by the
Administrator, after such hearing as he may prescribe, such proposal
shall become binding as a part of this Code, provided, however, that
in no event shall hourly rates of pay be reduced.
SECTION 4. Female Employees.-Female employees performing
substantially the same work as male employees shall receive the same
rate of pay as male employees, and where they displace men they
shall receive the same rate of earnings as the men they displace.
SECTION 5. Handicapped Persons.-A person whose earning ca-
pacity is limited because of age, physical or mental handicap, or other
infirmity, may be employed on light work at a wage below the mini-
mum established by this Code, if the employer obtains from the
state authority, designated by the United States Department of
Labor, a certificate authorizing such person's employment at such
wages and for such hours as shall be stated in the certificate. Such
authority shall be guided by the instructions of the United States
Department of Labor in issuing certificates to such persons. Each
employer shall file monthly with the Code Authority a list of all such
persons employed by him, showing the wages paid to, and the maxi-
mum hours of work for such employee.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 1. Child Labort-No person under sixteen (16) years of
age shall be employed in the Industry. No person under eighteen
(18) years of age shall be employed at operations or occupations
which are hazardous in nature or dangerous to health. The Code
Authority shall submit to the Administrator within 30 days after
the effective date of this Code a list of such operations or occupations
for his approval. In any State an employer shall be deemed to have
complied with this provision as to age if he shall have on file a certili-
cate or permit duly signed by the Authority in such State empowered
to issue employment or age certificates or permits showing that the
employee is of the required age.
SECTION 2. Provisions from the Act:
(a) Employees shall have the right to organize and bargain collec-
tively 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.
(b) 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
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
SECTION 3. Erovion Through Subterfuge.-No employer shall re-
classify employees or duties of occupations performed or engage in
any other subterfuge so as to defeat the purposes or provisions of
the Act or of this Code.
SECTION 4. Standards for Safety a-nd Health.-Every employer
shall provide for the safety and health of employees during the
hours and at the places of their employment.. Standards for safety
and health shall be submitted by the Code Authority to the Admin-
istrator within three (3) months after the effective date of the Code.
SECTION 5. State Laws.-No provision in this Code shall supersede
any State or Federal law which imposes on employers more stringent
requirements as to age of employees, wages, hours of work, or as to
safety, health, sanitary or general working conditions, or insurance,
or fire protection, than are imposed by this Code.
SECTION 6. Posting.-All employers shall post and keep posted
copies of this Code in conspicuous places accessible to all employees.
Every member of the Industry shall comply with all rules and
regulations relative to the posting of provisions of Codes of Fair
Competition which may from time to time be prescribed by the Ad-
SECTION 7. No employee shall be dismissed or discriminated
against by reason of making complaint or giving evidence with
respect to a violation of this code.
ARTICLE VI-ORGANIZATION, POWERS & DUTIES OF CODE AUTHORITY
SECTION 1. Organization and Constitution.-A National Code Au-
thority is hereby established consisting of 13 voting members to be
selected in the following manner:
(a) Eleven (11) of such voting members shall be selected by the
Regional Code Authorities hereinafter provided for; each such
Regional Code Authority shall select one (1) member by a fair
method of selection to be approved by the Administrator.
(b) The twelfth voting member shall be the President of the
Independent Aviation Operators of the United States. The thir-
teenth voting member shall be appointed by the Administrator.
(c) In addition to membership as above provided, there may be
one or more members without vote, to be known as Administration
Members one (1) of whom may be a representative of the Bureat
of Air Commerce, Department of Commerce, and all of whom are to
be appointed by the Administrator to serve for such terms as he
SECTION 2. (a) In addition to the National Code Authority, there
may be constituted eleven (11) Regional Code Authorities of from
three (3) to five (5) voting members each, which shall cooperate
with the National Code Authority in the administration of this
Code in their respective regions.
The boundaries of each region shall be as follows, subject to such
future modifications or changes as the National Code Authority,
with the approval of the Administrator, may deem necessary.
Region one (1) shall consist of the territory included within the
states of Maine, New Hampshire, Vermont, Massachusetts, Connecti-
cut, and Rhode Island.
Region two (2) shall consist of the territory included within the
states of New York, Pennsylvania, New Jersey, Maryland, Delaware,
Virginia, and the District of Columbia.
Region three (3) shall consist of the territory included within the
states of Mississippi, Alabama, Florida, Georgia, North Carolina,
and South Carolina and the territorial possession of Puerto Rico.
Region four (4) will consist of the territory included within the
states of Kentucky, Ohio, Tennessee, and West Virginia.
Region five (5) will consist of the territory included within the
states of Michigan and Indiana.
Region six (6) will consist of the territory included within the
states of Ntbraska, Colorado, Kansas, and Missouri.
Region seven (7) will consist of the territory included within the
states of Minnesota, Wisconsin, Iowa, and Illinois.
Region eight (8) will consist of the territory included within the
states of Texas, Oklahoma, Arkansas, and Louisiana.
Region nine (9) will consist of the territory included.within the
states of Washington and Oregon and the territory of Alaska.
Region ten (10) will consist of the territory included within the
states of Idaho, Montana, Wyoming, North Dakota, and South
Region eleven (11) will consist of the territory included within the
states of California, Utah, Nevada, Arizona, and New Mexico, and
the territory of Hawaii.
The members of such Regional Code Authorities shall be selected
by the members of the Industry in each region by a fair method of
selection to be determined by the National Code Authority subject to
the approval of the Administrator.
(b) In addition to membership on such Regional Code Authorities
as above provided, there may be one or more members without vote,
to be known as Administration Members one (1) of whom may be a
representative of the Bureau of Air Commerce, Department of Com-
merce, and all of whom are to be appointed by the Administrator and
shall serve for such terms as he may specify.
SECTION 3. (a) Where necessary to properly effectuate the purposes
of the Act. or of this Code, the National Code Authority, on recom-
nendation of a Regional Code Authority, shall provide for such
Divisional or Local Code Authorities, or both, for such areas within
the region of such Regional Code Authority, as the National Code
Authority deems advisable, subject to the approval of the Admin-
istrator. Such Divisional or Local Code Authorities, or both, shall
consist of three (3) voting members to be selected by the members
of the Industry in the particular area by a fair method of selection
to be determined by the Regional Code Authority, and approved by
(b) In addition to membership as above provided, there may be
one or more members without vote to be known as Administration
members, to be appointed by the Administrator to serve for such
terms as he may specify.
SECTION 4. Temporary Organization.-Pending selection of eleven
(11) regional voting members of the National Code Authority, as
hereinabove provided in Section 1 of this Article such voting mem-
bers shall be appointed by the Administrator and shall continue in
office until their successors are selected as above provided.
SECTION 5. Each trade or industrial association directly or in-
directly participating in the selection or activities of the Code Au-
tlority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the Administrator true copies of its articles of asso-
ciation, 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.
SECTION 6. In order that the Code Authorities shall at all times
be truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter if he shall
find that the Code Authorities, or any of them, are not truly repre-
sentative or do not in other respects comply with the provisions of
the Act, may require an appropriate modification of the Code
Authorities, or any of them.
SECTION 7. If the Administrator shall at any time determine that
any action of a Code Authority or any agency thereof may be unfair
or unjust or contrary to the public interest, the Administrator may
require that. such action be suspended to afford an opportunity for
investigation of the merits of such action and further consideration
by such Code Authority or agency pending final action which shall
not be effective unless the Administrator approves or unless he shall
fail to disapprove after thirty (30) days' notice to him of inten-
tion to proceed with such action in its original or modified form.
SECTION 8. If a member of this Industry is also a member of an-
other Industry for which a Code has been approved this Code shall
apply only to that part of his business which is properly included
under this Code.
SECTION 9. Nothing contained in this Code shall constitute the
members of the Code Authorities partners for any purpose. Nor
shall any member of the Code Authorities be liable in any manner
to anyone for any act of any other member, officer, agent, or em-
ployee of the Code Authorities. Nor shall any member of the Code
Authorities, exercising reasonable diligence in the conduct, of his
duties hereunder, be liable to anyone for any action or omission to
act under this Code, except for his own willful lmalfeasance or
SECTION 10. The National Code Authority may appoint, a com-
mittee to confer with committees or representatives of the Air
Transport Industry and/or other related industries for the purpose
of establishing such an Industrial Relations Board as they may
deem desirable to adjust by conference and negotiation any con-
troversy concerning hours, wages, and conditions of employment,
or compliance with the labor provisions of the code or codes govern-
ing the respective industries.
SECTION 11. Powers and Duties.-Subject to such rules and regin-
lations as may be issued by the Administrator, the National Code
Authority shall have the following powers and duties, in addition
to those authorized by other provisions of this Code.
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
(b) To adopt bylaws and rules and regulations for its procedure.
(c) To obtain from members of the Industry such information
and reports as are required for the administration of the Code. In
addition to information required to be submitted to the National
Code Authority, members of the Industry subject to this Code shall
furnish such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the Act to
such Federal and State agencies as he may designate; provided that
nothing in this Code shall relieve any member of the Industry of
any existing obligations to furnish reports to any Government
agency. No individual report shall be disclosed to any other mem-
ber of the Industry or any other party except to such other Govern-
mental agencies as may be directed by the Administrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
(e) To make recommendations to the Administrator for the
coordination of the administration of this Code and such other
codes, if any, as may be related to or affect members of the Industry.
(f) 1. It being found necessary in order to support the adminis-
tration of this Code and to maintain the standards of fair competi-
tion established hereunder and to effectuate the policy of the Act,
the National Code Authority is authorized:
(a) 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;
(b) 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 estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
(c) 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
2. Each member of the Industry shall pay his or its equitable con-
tribution to the expenses of the maintenance of the National Code
Authority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
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
Code Authority or to receive the benefits of any of its voluntary
activities or to make use of any emblem or insignia of the National
3. The National Code Authority shall neither incur nor pay any
obligation substantially in excess of the amount thereof as esti-
mated in its approved budget, and shall in no event exceed the total
amount contained in the approved budget except upon approval of
the Administrator; and no subsequent, budget shall contain any de-
ficiency item for expenditures in excess of prior budget estimates
except those which the Administrator shall have so approved.
(g) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Industry in thiii relations with each other
or with other trades and/or industries; measures for industrial
planning, and stabilization of employment; and including modifica-
tions of this Code which shall become effective as part. hereof upon
approval by the Administrator after such notice and hearing as he
(h) To appoint a Trade Practice ('oniiittee which shall meet
with the Trade Practice Cormmittees appointed under such other
codes as may be related to the Industry for the purpose of formulat-
ing fair trade practices to govern the relationships between employ-
ers under this Code and under such other codes to the end that such
fair trade practices may be proposed to the Administrator as amend-
ments to this Code and such other codes.
(i) To provide appropriate facilities for arbitration, and subject
to the approval of the Administrator, to prescribe rules to effect
compliance with awards and determinations.
(j) To elect officers and committees and assign to them such
duties and powers as it may consider advisable, and to provide for
its own procedure as the administration agency of this Code.
SECTION 12. The Regional Code Authorities shall have the fol-
lowing powers and duties subject to the review of the National
Code Authority, and subject always to such rules and regulations
as may be issued by the Administrator.
(a) To adopt bylaws and rules and regulations for their pro-
(b) To elect officers and committees and assign to them such
duties and powers as may be considered advisable.
(c) With the approval of the National Code Authority and the
Administrator to make such additional regional regulations and
trade practice rules as shall be necessary to accomplish the purposes
of this Code and to allow, where necessary, divisional or local Code
Authorities to make such divisional or local regulations and trade
practice rules as are necessary to accomplish the purposes of this
SECTrON 1. Every member of the Industry shall, within sixty (60)
days after the effective date of this Code, or within ten (10) days
after becoming a member of the Industry, and annually thereafter,
register with the National Code Authority his name, together with
a description of the nature of his business operations and such other
information as may be required by the National Code Authority
with the approval of the Administrator.
SECTION 2. After sixty (60) days after the effective date of this
Code it shall be a violation of this Code for any member of the
Industry to operate a business coming under the provisions of the
Code of Fair Competition for the Commercial Aviation Industry
as defined in Article II without registering as provided in Section
SECTION 8. The National Code Authority may, with the approval
of the Administrator, furnish to each registered member of the In-
dustry, a certificate or other insignia and may issue regulations with
the approval of the Administrator concerning the proper display of
such insignia, which shall be binding on all members of the Industry.
SECTION 4. The cost of such registration and such insignia may
be assessed against each member of the Industry as a registration
fee, subject to the approval of such fee by the Administrator.
ARTICLE VIII-COST AND PRICE CUTIrrNG
SECTION 1. The standards of fair competition for the industry
with reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of
competition and is forbidden. Any member of the Industry or
of any other industry or the customers of either may at any time
complain to the National Code Authority that any price charged
for any specific product, commodity or service by any member of
the Industry constitutes unfair competition as destructive price cut-
ting, imperiling small enterprises or tending toward monopoly or
the impairment of code wages and working conditions. The Na-
tional Code Authority shall within five (5) days afford an oppor-
tunity to the member complained against to answer such complaint
and shall within fourteen (14) days make a ruling or adjustment
thereon. If such ruling is not concurred in by either party to the
complaint, all papers shall be referred to the Research and Planning
Division of NRA which shall render a report and recommendation
thereon to the Administrator.
(b) When no declared emergency exists as to any given product,
commodity or service, there is- to be no fixed minimum basis for
prices. It is intended that sound cost estimating methods should
be used and that consideration should be given to costs in the deter-
mination of pricing policies.
(c) When an emergency exists as to any given product, commod-
ity or service, sale below the stated minimum price of such product,
commodity or service, in violation of Section 2 hereof, is forbidden.
SECTION 2. Emergency Provisions:
(a) If the Administrator, after investigation, shall at any time
find both (1) that an emergency has arisen within the Industry in
any region or division adversely affecting small enterprises or wages
or labor conditions, or tending toward monopoly or other acute
conditions which tend to defeat the purposes of the Act; and (2)
that the determination of the stated minimum price for a specified
product, commodity or service within the Industry, Region or Divi-
sion for a limited period is necessary to mitigate the conditions con-
stituting such emergency and to effectuate the purposes of the Act,
the National Code Authority may cause an impartial agency to
investigate costs and to recommend to the Administrator a deter-
mination of the stated minimum price of the product, commodity
or service affected by the emergency and thereupon the Adminis-
trator may proceed to determine such stated minimum price.
(b) When the Administrator shall have determined such stated
minimum price for a specified product, commodity or service for a
stated period, which price shall be reasonably calculated to mitigate
the conditions of such emergency and to effectuate the purposes of
the National Industrial Recovery Act, he shall publish such price.
Thereafter, during such stated period, no member of the Industry,
Region or Division shall sell such specified product, commodity or
service at a net realized price below said stated minimum price and
any such sale shall be deemed destructive price cutting. From
time to time, the National C('oe Authority maye 'ec-'.,111I1e.l rtvii'w
or reconsideration or the Administrator may cause any determina-
tions hereunder to be reviewed or1 reconsidered and appropriate
ArTICLE IX-COST FINDINGS AND ACCOUNTING
SECTION 1. The National (ode Authority inay cause to be formu-
lated methods of cost finding and account ng capable of use. by all
members of the Industry, and shall submit such methods to the
Administrator for review. If approved by the Administrator, full
information concerning such methods shall be made available to all
members of the Industry. Thereafter, each member of the Industry
shall utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit any Code Authority,
any agent thereof, or any member of the Industry to suggest uniform
additions, percentages or differentials or other uniform items of
cost which are designed to bring about arbitrary uniformity of co;.ts
SECTION 2. Members of the Industry who perform work usually
assigned to employees, shall include, in their costing, wages for
such work at the current rate of pay common to that region.
SECTION 3. Members of the Industry who employ students on
work usually assigned to employees shall include in their costing
wages for such services at the current rate of pay common to that
region for the class of work performed and the evaluation of the
ARTICLE X-TRADE PRACTICE RULES
RULE 1. Inaccurate IAd cr'ti.hnr.-- NoI member of the Industry
shall publish advertising (whether printed, radio, display, or of any
other nature) which is misleading or inaccurate in any material par-
ticular, nor shall any member in any way misrepresent any goods or
credit terms, values, policies, services, or the nature or form of the
RULE 2. False Billing.-No member of the Industry shall know-
ingly withhold from or insert in any quotation or invoice any state-
ment that makes it inaccurate in any material particular.
RuLE 3. Inaccurate Labelling.-No member of the Industry shall
brand or mark or pack any goods in any manner which is intended
to or does deceive or mislead purchasers with respect to the brand,
grade, quality, quantity, size, substance, character, nature, finish,
material content, or preparation of such goods.
RULE 4. Defavm.tion.-No member of the Industry shall defame a
competitor by falsely imputing to him dishonorable conduct, in-
ability to perform contracts, questionable credit standing, or by
other false representation, or by falsely disparaging the grade or
quality of his goods.
RULE 5. Threats of Law Suits.--No member of the Industry shall
publish or circulate unjustified or unwarranted threats of legal
proceedings which tend to or have the effect of harassing competi-
tors or intimidating their customers.
RULE 6. Secret Rebates.-No member of the Industry shall se-
cretly offer or make any payment or allowance of a rebate, refund,
commission, credit, unearned discount, or excess allowance, whether
in the form of money or otherwise, nor shall a member of the In-
dustry secretly offer or extend to any customer any special service
or privilege not extended to all customers of the same class, for the
purpose of influencing a sale.
RULE 7. Bribing Employees.-No member of the industry shall
give, permit to be given, or offer to give, anything of value for the
purpose of influencing or rewarding the action of any employee,
agent, or representative of another in relation to the business of the
employer of such employee, the principal, of such agent or the repre-
sented party, without the knowledge of such employer, principal, or
party. This provision shall not be construed to prohibit free and
general distribution of articles commonly used for advertising ex-
cept so far as such articles are actually used for commercial bribery
as hereinabove defined.
RULE 8. Inducing Breach of E.isting Contracts.-No member of
the industry shall wilfully induce or attempt to induce the breach
of existing contracts between competitors and their customers by
any false or deceptive means, or interfere with or obstruct the per-
formance of any such contractual duties or services by any such
means, with the purpose and effect of hampering, injuring, or em-
barrassing competitors in their business.
RuLE 9. Coercion.-No member of the Industry shall require that
the purchase or lease of any goods be a prerequisite to the purchase
or lease of any other goods.
RULE 10. Blacklisting.-No member of the Industry shall join or
participate with other members of the Industry who with such mem-
ber constitute a substantial number of members of the Industry, or
who together control a substantial percentage of the business in any
specific product or products of the Industry, in any transaction
known in law as a black list, including any practice or device (such
as a white list) which accomplishes the purpose of a black list.
ARTICLE XI-EXPORT TRADE
SECTION 1. No provisions of this Code relating to prices or terms
of selling, shipping, or marketing shall apply to export trade or
sales or shipment for export trade. Export Trade" shall be as
defined in the Export Trade Act adopted April 10, 1918.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lation issued under said Act.
SECTION 2. Such of the provisions of this Code as are not required
to be included herein by the Act may, with the approval of the Ad-
ministrator, be modified or eliminated in such manner as may be
indicated by the needs of the public, by changes in circumstances, or
by experience. All the provi.-ions.of this Code, unless so modified
or eliminated, shall remain in effect until June 16, 1935.
ARTICLE XIII-MO-NOPOIES, ET'.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE XIV-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult. of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases except such as may be required to meet individual cost should
be delayed, but. when made such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.
ARTICLE XV-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the Administrator.
Approved C'ode No. 513.
Registry No. 1401-04.
UNIVERSITY OF FLORIDA
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