NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AIR TRANSPORT INDUSTRY
AS APPROVED ON DECEMBER 10, 1934
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-, Approved Code No. Ill-Amendment No. 2
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Approved Code No. Ill-Amendment No. 2
AMENDMENT TO CODE OF FAIR COMPETITION
AIR TRANSPORT INDUSTRY
As Approved on December 10, 1934
APPROVING AMENDMENTS OF CODE OF FAIR (COMPETITION FOR THE AIR
An application having been duly made pursuant to and in full
compliance with the provisions of Title 1 of the Nationql Industrial
Recovery Act, approved June 16, 1933, for approval of an Amendment
to Article VII of the Code of Fair Competition for the Air Trans-
port. Industry and opportunity to be heard having been afforded to
all interested parties and any( objection filed having been diuly con-
sidered and the annexed report on said Amendment containing find-
ings with re)pec't thereto having been made and directed to the
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board. pursuant to author-
ity vested in it by Executive Orders of the President including
Executive Order No. 6859, dated September 27, 1934, and otherwise,
does hereby incorporate by reference said annexed report and does
find that the Code, as constituted after being amended, complies in
all respects with the pertinent provisions and will promote the policy
and purposes of said Title of said Act, and does hereby order that
said Amendment be and it is 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.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Adm(in'is.trati've Officer.
L. H. PEEBLES,
Acting Division Adminiistrator.
WASHINGTON, D. C.,
December 10, 19334.
REPORT TO THE PRESIDENT
The Wl'hite House.
SIR: An application has been duly made pursuant to and in full
compliance with the provisions of the National Industrial Recovery
Act for an Amendmeent to the Code of Fair Competition for the Air
Transport Indll-try, the purpose and effect of the Amendment being
the addition of Sections 4 (a), 4 (b), 4 (c), 5, 6 and 7 to Article VII
of the Code covering Fair Trade Practice provisions. Public Hear-
ing on this amendment was held in Washington, D. C. on September
This imendmnent is submitted in the form as revised in accordance
with objections received. The Amendment limits the amount of
baggage that may be carried free of charge, and among other things
deals with restriction of the issuance of free or reduced fare trans-
portation without unduly limiting the right of any member of the
Industry to utilize sucl free or reduced fare transportation for
The Deputy Administrator in his final report to us on said amend-
ment to said Code having found as herein set forth and on the basis
of all the proceedings in this matter:
We find that:
(a) The amendment to said Code and the Code as amended is well
designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions 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 among trade groups, by inducing and maintaining
united action of labor and management under adequate governmental
sanction and supervision, by eliminating unfair competitive practices,
by promoting the fullest possible utilization of the present produc-
tive capacity of industries, by avoiding undue restriction of produc-
tion (except as may be temporarily required), by increasing the con-
sumption of industrial and agricultural products through increasing
purchasing power, by reducing and relieving unemployment, by
improving s-tandards of labor, and by otherwise rehabilitating
(b) The Code a- asamended complies in all respects with the perti-
nent provi.-ions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
.-ection (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment on behalf of the Indu.stry as a whole.
(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.
(e) The amendment 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) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, this amendment has been approved.
For the National Industrial Recovery Board:
W. A. HAnIMAN,
DECEMBER 10, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE AIR TRANSPORT INDUSTRY
The Code of Fair Competition for the Air Transport Industry
shall be amended by adding to Article VII Sections 4 (Subsections
a. b, c), 5. 6, and 7 as follows:
4a. All articles carried as private luggage of passengers (whether
carried in the baggage compartment or by the passenger in the
cabin), shall be considered as baggage and weighed and charged for
b. Free Baggage Allowance: Thirty-five (35) pounds of baggage
for each passenger shall be carried free of charge. This provision
doe. not apply to services within either the territories and last point
of departure or first point of landing in the continental United
c. Charge for Excess Baggage: Baggage in excess of thirty-five
(35) pound for each pa.,enlger shall be charged for at the tariff
rate for such baggage. No more than fifty poluids of baggage per
passenger shall be carried, except by special arrangement in each
individual case. This provision does not apply to services within
either the territories of Ala-ka or Hawaii or between such territories
and last point of departure or first point of landing in the continental
5. No member of the industry shall knowingly withhold informa-
tion requested concerning air transportation facilities, or knowingly
give inaccurate information concerning such facilities.
6. No member of the industry shall defame a competitor by falsely
imputing to him dishonorable conduct, inability to perform con-
tracts, questionable credit standing, or by falsely disparaging the
character of his personnel or operation methods or the quality of
his equipment or services.
7. No member of the industry -shall, after December 10, 1934,
directly or indirectly issue or give any free or red(ucedl fare translor-
tation to passengers, except. (1) to Federal Government employees
traveling on Government request for Transportation (Form 1030);
(2) persons traveling on the carrier's business, it. employees, its offi-
cers and directors, surgeons. physicians and attorneys, and the imme-
diate families of employees (the immediate family of an employee to
include only wife or husband, children, parents, sisters and broth-
ers); (3) when on official business, to Post Office inspectors and
officials, Bureau of Air Commerce inspectors and officials, Custom
House inspectors, Immigration inspectors, Air Transport Code Au-
thority officials and employees, and National Recovery Administra-
tion officials traveling on Air Transport Code Authority business;
(4) witnesses in connection with any legal matters in which the car-
rier is interested; (5) persons injured in accidents and physicians
and nurses attending such persons; PROVIDED, however, that this
provision shall not be construed to prohibit the interchange of passes
for the officers, directors and employees of carriers by air and the
immediate families of employees as described above; nor to prohibit
any carrier from carrying passengers free with the object of provid-
ing relief in cases of general epidemic, pestilence, or other calamitous
visitation; nor to prohibit the issuance of free transportation for
educational purposes on regular scheduled flights not to exceed one
hundred (100) miles or to the next scheduled stop beyond one hun-
dred (100) miles.
Free passes may also be granted for scheduled flights in excess
of a round trip from the point of origin to the next regular scheduled
stop beyond one hundred (100) miles on any route, for educational
purposes, after fifteen (15) days from the mailing date of notice
in writing by the member of the industry in question to the Air
Transport Code Authority. Non-scheduled flights for educational
purposes may be granted within the discretion of any member of
the industry. Educational purposes as herein used means any pur-
pose which clearly serves to demonstrate the merits of air trans-
portation to the public and which may reasonably be expected to
increase air traffic at full tariff rates. Any agreement made in writ-
ing for free transportation, prior to December 10, 1934, by any,
member of the industry, shall not be considered a violation of the
provisions of this section. The provisions of this Section shall not
apply to services within either the territories of Alaska or Hawaii
or between such territories and last point of departure or first point
of landing in the continental United States.
Approved Code No. Ill-Amendment No. 2.
Registry No. 1741-2-04.
UNIVERSITY OF FLORIDA
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