Approved Code No. 513 Registry No. 1401-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL AVIATION 

INDUSTRY 

AS APPROVED ON AUGUST 28, 1934 

WE DO .. OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

I ( 

I I /, 

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Approved Code No. 513 

CODE OF FAIR COMPETITION 

FOR THE 

C·Ol\1MERCIAL AVIATION INDUSTRY 

As Approved on August 28, 1934 

ORDER 

CODE OF FAIR COMPETITION FOR THE COMMERCIAL A VI.A TION 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 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, cqntaining findings with respect thereto, having been 

made and directed to the President: 

NOW TI-IEREFORE, 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 Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed 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 8. JOHNSON, 

Acl1ninistrat01' for I ndustrial Recovery. 

Approval recommended : 

WILLIAM p. F .ARNSWORTH, 

Acting Division Ad111,inist1·ator. 

WASHINGTON, D.C., 

August 28, 1934. 

8o021°-1044-1H4-H4 (69) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1V hite H O'use. 

Srn : This is a report on the Code o:f 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 

l\1aximum hours :for employees are established as follows : Clerical 

employees 40 hours pe1· week, mechanics and mechanics' helpers 48 

hours per week; watc:1men, 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 dangerous to health is prohibifad. 

I n recommending the approval of the hour provision of this 

Code, it has been necessary to recognize that this industry is providing 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. 

FCONO::MIO EFFECTS OF THE CODE 

This industry has experienced a serious curtailment of activity 

since 1929 as indieated 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 Comnierce, 

indicates the investment in commercial and private airports exceeds 

$56,000,000.00. 

The direct effect of this Code is found in the organization of an 

hitlierto unorganized industry towards the utilization of its full 

productive capacit y. Elimination o:f unfair trade practices and de- structive competitive (Il1ethods 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 he of importance to 

the Nation in its defense and in its improvement o:f transportation 

facilities. 

(70) 
71 

At the present time information is not available as to the extent 

of the Commercial Aviation Industry but this Code will make available for the first time complete registration of the facilities and the 

scope of this industry. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set:forth and on the basis of all the proceedings in this matfor: 

I find that: 

(a) Said Code is well designBd to promote the policies and purposes 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 provide for the general welfare by promoting the organization of industry :for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and 11nanagement 

under adequate governmental sanctions and supervision, by eli1minating unfair competitive practices, by ,promoting the :fullest possible 

utilization .of the present productive capacity of industries, by avoid- ing undue restriction o:f production ( except as may be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. 

(b) Said industry normally eu-nploys 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 pertinent provisions of said Title of said Act, including without limitation Subsection (a) o:f Section 3, Sub ection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant association is truly representative of the aforesaid industry ; and that said 

association imposes no inequitable restrictions on admission to 

membership therein. 

( 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. 

(£) 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, there.fore, this Code has been approved. 

Respectfully, 

WASHINGTON, D. c., 

Aitgust 28, 1934. 

HUGH 8. JOHNSON, 

Administrator. 
CODE OF FAIR CO~IPETITION FOR THE COlVIMERCIAL 

AVIATION INDUSTRY 

ARTICLE I-PURPOSES 

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, g,nd its 

provisions shall be the standard o:f fair c mpetitioI). :for such in 1ustry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term "Commercial Aviation Industry" as used herein 

includes any and all nonscheduled, miscellaneous flyi:ng activities in 

the aviation industry, as distinguished fron1. scheduled point-topoint 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 o:f 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 therefor, together with parachutes; the s!)lling n.nd/or distributing at wholesale or retail aircraft, 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 addition thereto all other tyr,es of industries in the field of aviation not 

included in the two Codes above mentioned, together with such 

related branches or subdivisions as mav from time to time bB included under the provisions of this Cod~. 

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 employer or on his or its own behalf. 

2. The term "employPe" as u. ed herein includes any und all persons engaged in the Industry, however compensated, except a member 

of the Industry. 

3. The term'' employer" as nsed herein includes anyone by whom 

such ern.ployee is compensated or employed. 

4. The term " student " as used herein includes anyone regularly 

enrolled in a sf'hool 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. 

(72) 
73 

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. 

ARTICLE III-HoURs 

SECTION 1. M amimum H ou.rs.-N o 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. Ewceptions.-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 endangering life or property, provided that for hours wor keel 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 norm.al rate of 

pay. 

(b) Watchmen, caretakers, and general utility field employes provided that they shall not work more than fifty-£ our ( 54) hours in 

any week, unless in case of emergency, and then they shall be compensated at not less than one and one-third times their normal rate 

o_f pay for hours worked in excess of fifty-four (54) per week. 

( c) Pilots provided that they shall not work more than one hundred (100) flyi.ng hours per month or as this clause may be modified 

by the Administrator on recommendation of the Department of 

Commerce. 

( cl) Persons employed in managerial executive, professional 

capacities, who regularly receive more than Thirty-five ($35.00) 

Dollars per week. 

SECTION 3. Ernployment by Several Ernployers.-N o employer 

shall lmowingly 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. 

ARTICLE IV-"\V AGES 

SECTION 1. Mininvum W ages.-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 immediate 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. JlfinimJ/J/m Wage Rates by Locality/Occupation.-After 

the approval of this Code, the Code Authority may present for approval to the Administrator, after notice and hearing, recommendations as to the upward adjustments in minimum wages for specified 

regions/occupations in order to effectuate the purposei\ of the Act. 
74 

ECTION 3. 1Vages above Minim,um.-T.here shall be an equitable 

adjustment of all wages above minimum, and to that end, within 

sixty ( 60) days :from the approval o:f this Code, the Code Authority 

shall submit for the ftpproYal o:f the Administrator a pr.oposa.l £or 

adjustment in wages above the minimum. Upon approval by the 

Admini trator, after such hearing as he may prescribe-, such proposal 

~hall beco1ne binding as a part o:f this Code, provided, however, that 

in no event shall hourly rates of pay be reduced. 

SECTION 4. Fmnale Eniployees.-Fernale 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 Pe1·sons.-A person whose earning capacity is linrited because of age, physical or mental handicap, or other 

infirmity, may be employed on light work at a wage below the minimum established by this Code, i:f 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 n.nd 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. El3.ch 

employer shall file monthly with the Code Authority a list of all sueh 

persons employed by him, showing the wages paid to, and the maximum hours of work for such employee . 

...\nTICLE V- :G ENEML LABOR PROVISIONS 

SECTION 1. Ohild Labor.- No person under sixteen (16) years of 

age shall be employed in the Industry. No person under eighteen 

118) years of age shall be employed at operations or occupations 

wluch are hazardous in nature or dangerous to health. The Code 

Authority shall submit to the Administrator within 30 days after 

the e.ffectiYe date of this Code a list of such operations or occupations 

fur his approval. In any State an employer shall be deemed to have 

complied with this provision as to age if he sh all have on file a certificate 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 requirea age. 

SEQTION 2. Provisions from the Act: 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation o:f such representatives or 

in se.lf-organization or in other concerted activities for the purpo e 

of collective bargaining or other mutual aid or protection. 

(b) No employee and no one seeking employment sh all be required 

as a condition of employment to join any ompany union or to refrain 

fron1 joining organizing, or a sisting a labor organization of his own 

choosing; and 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay and other conditions of employment, 

approved or prescribed by the PresidentJ 

SECTION 3. Evasion Through Subterfuge.- No employer shall recla sify employees or duties 0f occupations performed or engage in 
75 

any other subterfuge so as to defeat the purposes or provisions of 

the Act or of this Code. 

SECTION 4. Standards for Safety and H ealth.-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) month after the effective date of the Code. 

SECTION 5. State Laws.-No pro,ision 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 Administrator. 

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, PowE...ttS & DuTms OF CooE AUTHORITY 

SECTION 1. Organization and Oonstitution.-A National Code Authority is hereby established consisting of 13 voting members to be 

selected in the following mann~r: 

(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 thirteenth voting member shall be appointed by the Administrator. 

( c) In addition to membership as above provided, there may be 

one or more me1nbers without vote, to be known as Administration 

Members one (1) of whom may oo a repre entative of the Bureau, 

of Air Commerce, Department of Comn1erce, and all of whom are to 

be appointed by the Administrator to serve for such terms as he 

may specify. 

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 chn.nges 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, Connecticut, and Rhode Island. 

Region tv.o (2) shall consist of the territory included within the 

states of New York, PennsylYania, New Jersey, }.1aryland, Delaware, 

Virginia, and the District of Colun1bia. 

82021°-1044-134-2 
76 

Region three (3) shall consist of the territory included within the 

states of :i)Iississippi, 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 "\Vest Virginia. 

Region five ( 5) will consist of the territory included within the 

states of JHi,,higan and Indiana. 

Region six ( 6) will consist of the t 0 rritory included within the 

states of Nebraska, Colorado, Kansas, and Missouri. Region seven (7) will con ist of the territory included within the 

stutes of :Minnesota, YVisconsin, 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 ,v ashington and Oregon and the territory of Alaska. 

Region ten ( 10) will consist of the territory included within the 

states of Idaho, :Montana, "\Vyoming, North Dakota, and South 

Dakota. 

Region eleven ( 11) will consist of the territory included within the 

states of California, Utah, Nevada, Arizona, and New Mexico, and 

the territory of H awaii. 

The members of such Regional Code Authorities shall be selected 

by the 111.embers of the Industry in each region by a fair method of 

election to be determined by the N utional Code Authority subject to 

the approval of the Administrator. • 

(b) In addition to membership on such Regional Code Authorities 

as a ove provided, there may be one or more members without vote, 

to be known as Administration l\1embers one (1) of whom may be a 

repre entative of the Bureau of Air Commerce, Department of Commerce, and all of whom are to be appointed by the Administrator and 

shall serve for such terms as he may specify. ECTION 3. (a) \Vhere necessary to properly effectuate the purposes 

of the Act or of this Code, the National Code Authority, on recom- mendation 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 0£ the Adn1inistrator. Such Divisional or Local Code Authorities, or both, shall 

consist 0£ three (3) voting members to be selected by the members 

0£ the Industry in the particufar ar :1 by a fair method of selection 

to be determined by the Regional Code Authority, and approved by 

the Administrator. (b) In addition to membership as above provided there may b€ 

one or more members without vote to be known as Admini tra tion 

members, to be appointed by the Administrator to serve £or such 

terms as he may specify. ECTION 4. Te11iporary Organization.-Pending selection 0£ eleven 

( 11) regional voting members 0£ the National Code Authority, aE 

hereinabove provided in Section 1 of this Article such voting members shall be appointed by the Administrator and shall continue in 

cffice until their successors are selected as above provided. 

SECTION 5. Each trade or industrial association directly or indirectly participating in the selection or activities 0£ the Code Au-
77 

thority shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the Administrator true copie of its articles of a sociation bylaw , regulations and any amendments when made thereto, 

together with such other information a to m.embership, 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 respect comply 

with the provisions of the Act, t

1

1e Administrator may pre cribe 

such hearings as he may deem proper; and thereafter if he shall 

find that the Code Authorities, or any of them are not truly representative or do not in other respects comply with the provisions of 

the Act, n1ay require an appropriate modification of the Code 

Authorities or any of them. 

SECTION 7. If the Administrator shall at anv 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 

r equire that such action be u pended to afford an opportunity for 

jnvestigation of the merits of such action and further con ideration 

by such Code Authority or agency pending final action which shall 

not be effective unless the Administrator approves or unless he shall 

f ail to disapprove after thirty (30) days' notice to him of intention to proceed with such action in its original or modified form. 

SECTION 8. If a member of this Industry is also a member of another Industry for which a Code has been approved this Code shall 

apply only to that part of his bu iness which is properly included 

under this Code. 

SECTION 9. Nothing contained in this Code shall constitute the 

1nembers 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 employee of the Code Authorities. J or shall any member of the Code 

Authorities, exer ising rea onable dilio-ence in the con--:1uct of his 

duties hereunder, be liable to anyone for any action or omission to 

act under this Code, except for his own willful mal:feasance or 

nonfeasance. 

SECTION 10. The National Code A,1thority may appoint a committee to confer with committees or r epresentatives of the Air 

Transport Industry and/or other related industries for the purpose 

of e. tablishing uch an Industrial Relations Bo, rd as they may 

deem desirable to adjust by conference and negotiation any controversy concerning hours, wages, and conditions of employment, 

or compliance rith the labor pro"isions of the code or codes governing the respective indu tries. 

SECTIO:N" 11. Poi ers ancl Didies.- Subject to su,..,h rules and regulations as may be is ued by the Administrator, the National Code 

Authority hall hav 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 

proYide for the compliance of the Industry with the provisions of 

the Act. (b) To adopt bylaws and r ules and r egulations for its procedure. 
78 

( c) To obtain fro1n members of the Industry such information 

and reports as are required f or the administration of the Code. In 

addition to informat10n required to be submitted to the National 

Code Authority, members of the I ndustry subject to this Code shall 

furnish such statistical information as the Administrator n1ay dee1n 

nec€ssary for the purposes recited in Section 3 (a) of the Act to 

such Federal and State agenc::.es as he may designate ; provided that 

nothing in this Code shall relieve any member of the Industry of 

any existing obligations t o furnish r eports to any Government 

agency. No individual report shall be disclosed to any other member of the I ndustry or any other party except to such other Governn1ental agencies as may be directed b:y 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 administration of this Code and to maintain the standards of fair competition 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 

I ndustry ; 

( c) After such budget and basis of contribution have been a pp roved by the Administrator, to determine and obtain equitable contribution as above set forth by all members of the Industry, and to 

that end, if necessary, to institute legal proceedings therefor in its 

own name. 

2. Each member of the I ndustry shall pay his or its equitable contribution to the expenses of the 1naintenance of the National Code 

Authority, determined as hereinaboYe provided, and subject to rules 

and regulations pertaining thereto issued by the Administrator. 

Only members of the Industry complying with the Code and contributing to the expenses of its administration as hereinabove pro- vided, (unless duly exempted from making such contribnt:on.) 

shall be entitled to participate in the selection of members of the 

Code Authority or to receive the benefits of any of i~ Yolunlar_ r 

activities or to make use of any emblem or insignia of the National 

Recm--ery Administration. 

3. The National Code Authority hall neither incur nor pay any 

obligation substantially in excess of the amount thereof as esti-
79 

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 deficiency 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 their _;:elations with each other 

or with other trades and/or indu tries; measures for industrial 

planning, and stabilization of employment; and including modifications of this Code which shall become effective as part hereof upon 

approval by the Administrator after such notice and hearing as he 

may specify. 

(h) To appoint a Trade Practice Committee which shall meet 

with the Tra.de Practice Committees appointed under such other 

codes as may be related to the Industry for the purpose of :fonnulating fair trade practices to govern the relationships between employers under this Code and 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. 

(i) To provide appropriate facilities for arbitration, and subject 

to the approval of the Administrator, to prescribe rules to effeet 

compliance with a wards 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 following powers and duties subject to the review of the National 

Code Authority, and subject alwn,ys to such rules and regulations 

as 1nay be issued by the Administrator. 

(a) To adopt bylaws and rules and regulations for their procedure. (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 ns shall be necessary to accomplish the purposes 

of this Code and to allow, where necessary, divisional or local Code 

Authorities to 1nake such divisional or local regulations and trade 

practice rules as are necessary t o accomplish the purposes of this 

Code. 

ARTICLE VII-REGISTRATION 

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 o:f the nature of his business operations and such other 

information as may be required by the National Code Authority 

with the approval 0£ the Adn1inistrator. . SECTION 2. After sixty (60) da.ys after the effective dafo 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 
80 

Code of Fair Competition for the Commercial Aviation Industry 

as defi~ed in Article II without registering as provided in Section 

1 above. 

SECTION 3. The National Code Authority may, with the approval 

of the Administrator, furnish to each registered member of the Industry, 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 CUTTING 

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 cutting, imperiling small enterprises or tending toward monopoly or 

the impairment of code wages and working conditions. The Nationa.l Code Authority shall within five ( 5) days afford an opportunity 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) VVhen 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 determination of pricing policies. 

( c) vVhen an emergency exists as to any given product, commodity or service, sale below the stated minimum price of such product, 

commodity or service, in violation of Section 2 hereof, is forbidden. 

SEOTION 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 Division for a limited period is necessary to mitigate the con9-itions constituting such emergency and to effectuate the purposes o:f the Act, 

the National Code Authority may cause an impartial agency to 

investigate costs and to recommend to the Administrator a determination of the stated minimum price o:f the product, comm.odity 
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or service affected by the emergency and thereupon the Administrator 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 sbted minim.um price and 

any such sale shall be deemed destructfrc price cutting. From 

time to time, the National Code Authority may recommend review 

or reconsideration or the Admini trator may cause any determinations hereunder to be reviewed or recon idered nnd appropriate 

action taken. 

ARTICLE IX-CosT FINDING AND AccouKTING 

SECTION 1. The National Code Authority may ·a use to be formulated methods of cost finding an l accounting capable of use by all 

members of the Industry, ::md shall submit such methods to the 

Administrator for review. I:f approved by the Admini trator, full 

information concerning such methods shall be made available to all 

members of the L1dustry. Ther0 after, each member of th0 Industry 

shall utilize such methods to tl1e extent found practicable. Nothing 

herein contained shall be constrned to permit any Code Authorjty, 

any agent thBreo:f, or any member of the Industry to suggest uniform 

additions, percentages or di-fferentiais or other uniform items of 

cost 'Yhich are designed to bring about arbitrary uniformity of costs 

or prices. 

SECTION 2. Members of the Inclu try 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 Indu tTy who employ students on 

work usually assigned to employees shall include in their costjng 

wages for such services at the current rate of pay common to that 

regi?n fo~· the class of work performed and the evaluation of the 

services g1 ven. 

ARTICLE X-TRADE PRACTICE RULES 

RULE 1. ln.aecwrate Adve1·tising.- No member of the Industry 

shall publish advertising ( whether printed, radio, display, or of any 

other nature) which is misleading or inaccurate in any material particular, nor shall any 111.ember in any way misrepresent any good or 

credit terms, values, policies, service , or the nature or form of the 

business conducted. 

RULE 2. False Billin.g.- No member of the Industry shall knowingly withhold from or insert in any quotation or invoice any statement that makes it inaccurate in any material particular. 

RULE 3. lnacC'nrate Labellin.g.- N o member of the Industry shall 

brand or mark or pack any goods in any manner which is intended 
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t-0 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. Defamation.-N o member of the Industry shall defame a 

competitor by falsely imputing to him dishonorable conduct, inability 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 S1.tits.-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 competitors or intimidating their customers. 

RULE 6. S ecret Rebates.- N o member of the Industrv shall secretly off er or make any payment or allowance of a reba\e, refund, 

commission, credit, unearned discount, or excess allowance, whether 

in the form of money or otherwise, nor shall a member of the Industry 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 Em,ployees.- 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 except so far as such articles are actually used for commercial bribery 

as hereinabove defined. RULE 8. Inwucing Breach of E xisting Oontracts.- 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 performance of any such contractual duties or services by any such 

means, with the purpose and effect of ham.pering, injuring, or embarrassing competitors in their business. 

RULE 9. Ooercion.- 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 member constitute a substantial number of members of the Industry, or 

who together control a ubstantial 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- ExPOR'l' 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" hall be as 

defined in the Export Trade Act a lopted April 10, 191 . 
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ARTICLE XII 

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 reguiation 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 Administrator, be modified or elimi..11ated in such manner as n1ay be 

indicated by the needs of the public, by changes in circumstances, or 

by experience. All the provisions. of this Code, unless so modified 

o"r eliminated, shall ren~ain in effect until June 16, 1935. 

ARTICLE XIII- ~ 1:o:NoPOLIEs, ETc. 

No p rovision of this Code shall be so a pp lied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. 

AnTICLE XIV-PRICE I NCRE.ASES 

Whereas the policy of the Act to increase real J?Urchasing power 

will be made more difficult of consummation if prices of goods and 

services increase as rapidly a wages, it is recognized that price increases exc 0 pt 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. 

AR1I'ICLE XV- EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the Administrator. 

Approved Code No. 513. Registry No. 1401-04. 

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