Ap::-roved Code No. 155-Amendment No.1 Registry No. 1150-02 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPE!.ITION 

FOR THE 

OXY-ACETYLENE INDUSTRY 

AS APPROVED ON JULY 26, 1934 

WE 00 OUR PAR'J' 

UNITED STATES 

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WASHINGTON: 1934 

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Approved Code No. !55-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

OXY-ACETYLENE INDUSTRY 

As Approved on July 26, 1934 

ORDER 

APPROVING AMENDMENTs OF CoDE OF FAIR Col\IPETITION FOR THE 

OXY-ACETYLENE INDUSTRY 

An application having been duly n1ade pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of amendments 

to a Code of Fair Co~petition for the Oxy-Acetylene Industry, and 

hearings having been duly held thereon and opportunity to object 

having been given and the annexed report on said amendments containing findings with respect thereto having been made and directed 

to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator :for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise, do hereby incorporate by rrferenct> . saia 

annexed report and do find that said amendments and the Code as 

constituted after being amended comply in all respects with tlw 

pertinent provisions and will promote the policy and purposes of 

~aid Title of said Act, and do hereby order that said amendments 

be and they are hereby approved, and that the previous approval of 

said Code is hereby modified to include an approval of said Code 

in its entirety as amended, provided that said amendments and this 

Order shall become effective on the fifth day after the date hereof. 

HUGH s. JOHNSON' 

Administrator for Industrial R ecovery. 

Approval recommended: 

GEo. L. BERRY, 

Division Administrator. 

WASHINGTON, D.C., 

J uly ~6, 1934. 

76182 °----829-144----34 {1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1Y hite House. 

Sm: This is a report on the proposed am ndments to the Code of 

Fair Competition for the Oxy-Acetylene Industry as approved by 

you on December 15, 1933. The public hearing on all but one of 

these amendments was held in the City of 'Vashington, D. C. on 

~1ay 15 and 16, 1934. The additional amendment was filed subsequent to this hearing and a notice of opportunity to be heard was 

published on June 29, 1934. Full opportunity was given to all 

interested parties to appear or to be heard. 

The purposes and effects of the amendments en which the public 

hearing was held are as follows : 

Amendment No. 1 revises the definition of "member of the Industry" to clarify same and amendment No. 2 eliminates the definition of "member of the Code" which is unnecessary. 

Amendment No. 3 adds definitions for " reseller " and " consumer ", 

terms used in subsequent amendments. 

Amendment No. 4 exempts from the maximum hours provisions 

employees working in a technical capacity, who receive more than 

$35.00 per week. This is because the operation of plants frequently 

depends on the work of employees of a technical capacity. 

Amendment No. 5 changes the n1.ethod of election of the Supervising Agency. It provides that five out of ten members of the 

Supervising Agency shall be elected on a basis of dollar volume of 

the business and that the other five members shall be elected by 

equal votes ca.st by tmits of the Industry. 

Amendment No. 6 deletes Section 4 of Article VI as the subject 

mntter of this section is covered in amendment No. 5. 

Amendment No. 7 merely changes the designation nun1.ber of Section 5 of Article VI. 

Amendment No. 8 provides for the appointment of a Trade Practice Committee in accordance with Administration policy. 

Amendment No. ~ enables the Supervising Agency to incur such 

reasonable obligations as are necessary for the administration of the 

Code. It require;; that the Supervising Agency submit for approval 

of the Administrator an itemized budget and an equitable basis of 

pro-rating the assessments to be collected from the members of the 

Industry. Payment of an equitable contribution to the expenses of 

the Supervising Agency by members of the Industry is made mandatory by this amendment if their principal line of busine,ss is covered 

by this Code. 

Amendment No. 10 changes the designation by number of Article 

VII to Article VII-A, Trade Practices-General Provisions. 

Amendment No. 11 applies to Section 3 of Article VII (to be Article VII-A) and provides two optional methods of calculating 

(2) 
3 

rental. The Code as approved did not contain any specification as 

to the method of calculating rental. 

Amendment No. 12 pertains to Section 4 of Article VII (to be 

Article VII-A) and provides that the price to be charged for all 

gases ,sold may be an f.o.b. freight station price as well as an f.o.b. 

plant or warehouse price. This amendment is of benefit to the con- sumer because when shipments are made by rail no charge is made 

for delivery of the goods from plant or warehouse to the freight 

station. 

Amendment No. 13 is a revision of Section 8 of Article VII (to be 

Article VII-A). It exempts medical gases ,sold on a gallonage basis 

for medical use only from the application of Sections 3, 4, 6 and J 1. 

Amendment No. 14 places in the Code as Section 9 of Article VII 

(to be Article VII- A) the standard bribery trade practice provision. 

Amendment No. 15 provides as a new Section 10 of Article VII 

(to be Article VII-A) for the prohibition of lending, leasing or 

giving away of apparatus under certain conditions. This provision 

represents a compromise of different provisions proposed, by two 

factions of the Industry, namely, those manufacturers interested in 

the manufacture and sale of gas and apparatus and those interested 

in the manufacture and sale of apparatus only. Because of the controversial nature of this provision the Supervising Agency voted at 

their meeting on June 6 and 7, 1934, to postpone action on same. 

An agreement was reached later and eight out ten members of the 

Supervising Agency have assented, one member not voting. 

Amendment No. 16 places in the Code a new Section 11 of Article 

VII (to be Article VII-A) pertaining to agreements betwee.n members of the Industry and resellers of gas. It is required that resellers of gas are bound in the handling of such product~ to comply 

with the provisions of Sections 1, 3 and 4 of Article VII (to be 

Article VII-A), provided, however, that nothing in this section shall 

be construed to mean that resellers of gas are bound to file the same 

rental or delivery charges filed by any member of the Indu try. 

There are no provisions in the Code concerning the prices at which 

the products of the Industry are sold nor does it include any provi- sion for the open filing of prices. All resellers of gas received a 

notice of the public hearing and all objections were met in revising 

the provision as proposed for approval. 

Amendment No. 17 creates Article VII-B and provides trade 

practice provisions, which are self-explanatory, for the medical gas 

division of the business. 

Amendment No. 18 changes the term "members of the Code" 

wherever used in the Code as approved to read "members of the 

Indus try." 

The purpose and effect of the amendment which \\'as ubmittecl 

subsequent to those on which the public hearing was held is as 

follows: 

Am.endment No. 19 places in the Code a new Section 12 of Article 

VII (to be Article VII-A) and provides, in connection with con- tracts in effect prior to the effective date of the Code, that the trade 

practice provisions contained in Sections 3, 4 and 5 of Article VII 

(to be Article VII-A) shall not apply if the.y were not specified in 

such contracts but that said provisions shall apply with re pect to 
4 

E>xtended or renewal periods of any such contract when extended or 

r enewed by a member of the Industry. This amendment clears up a 

difficulty which the Industry has experienced in connection with contracts which were in effect prior to the effective date of the Code. 

FINDI NGS 

The Deputy Administrator in his final report to me on said amendments to said Code having found as herein set forth and on the 

basis of all the proceedings in this matter: 

I find that: 

(a) The amendments to said Code and the Code us amended are 

well designed to promote the policies and purposes of Title I of 

the Na .... ional Industrial Recovery Act including the remova.l of obstru ~ons to the free flow o:f interstate and foreign commerce which 

tend to dimjnish the amount thereof, and will provide for the general 

welfare by promoting the organj zation of industry for the purpose 

of cooperative action of labor and management under adequate governmental sanction and snpervis:on, by eliminating unfair competitjve practices, by promoting the fullest possible utilization of the 

present productive capacity of industries, by avoiding undue restriction of production (except as may be temporarily quin~d ), by increasing the consumption of industrial and agricultural products 

through increasing purchasing pow r, by reducing and relieving unemployment, by improving standards of labor, and by otherwise 

r ehabJitating industry. 

(b) The Code as amoncled complies in all respects with the pertinent provisions of said Title of said Act, inclnding without limitation 

pub-section (a) of Se.ction 3, sub-section (a) of Section 7 and subsect.: on (b) of Section 10 thereof. 

(c) TheN ational Oxygen and Acetylene As, ociation was and is an 

jndustrjal assoc:ation truly representative of the aforesaid Industry 

and that sa,i l association impose<l and imposes no inequitable restrictions on admission to membership therein and has applied for these 

amendments. (d) These amendments and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

(e) These amendments and the Code as amended are not designed 

t o 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 b0en deprived o:f the right to be heard prior to approval of said 

amendments. 

For these reasons, these amendments have been approved. 

Respectfull:', 

JULY 26, 1934. 

HuGHS. JoHNSoN, 

Administrator. 
AlvfENDMENT TO CODE OF FAIR COMPETITION FOR 

THE OXY-ACETYLENE INDUSTRY 

AMENDMENT 1. In Article II-Definitions: For the present paragraph definin¥ "member of the Industry" substitute the follo·iVing: 

"The term member of the Industry' as used herein includes, but 

without limitation, any individual, partnership, association, corporation or other form of enterprise enga~ed in the Industry, either as an 

employer or on his or its own behalt." 

AMENDMENT 2. In Article ll-Definitions: Delete the paragraph 

defining "member of the Code." 

AMENDMENT 3. In Article !!-Definitions: Immediately following 

definition of "member of the Industry" insert the following two 

paragraphs: 

"The term 'reseller' as used herein includes any person, firm or 

other form of enterprise, selling under the name and trademark of 

another, any product of the Industry. 

"The term 'consumer' as used herein means the user of any 

product of the Industry as differentiated from the reseller." 

AMENDMENT 4. In Article III-Hours, Section 1, Line 5 : Delete 

the word "or" and insert between the words "executive" and 

"capacity" the words "or technical." Also add to Section 1 the 

following: 

"The exception of employes in a technical capacity is not to 

include any skilled operating employes or draftsmen." 

As so modified said Section will read as follows : 

"SECTION 1. On and after the effective date employers in the 

Industry shall not operate on a schedule of hours of labor for any 

of their employees (except any person employed as a salesman, 

engineer, fireman, loader, truck driver, or watchman, or employed in 

a managerial, executive or technical capacity and receiving more 

than $35.00 per week) in excess of an average of forty (40) hours 

per week over any period of six ( 6) weeks, or in any event more 

than forty-eight ( 48) hours in any one week. The ex·ception of 

employees in a technical capacity is not to include any skilled 

operating employes or draftsmen." 

AMENDl\IENT 5. In Article VI-Administration: Sulistitute for 

the present Section 1 the following: 

"SECTION 1. This Code shall be administered by a Supervising 

Agency of ten (10) persons chosen and elected by the members of 

the Industry as follows: 

"(a) At an election wherein each member of the Indu try having 

a net sales Yolume of products of the Industry of $100,000.00 or 

less per annum shall be entitled to one vote and each member of 

the Industry having a net sales volume in excess of $100)000.00 per 

annum shall be entitled to one vote with respect to $100,000.00 of 

(5) 
6 

such sales volume and one vote with respect to each $200,000.00 or 

fraction thereof that such sales volume shall be in excess of $100,-

000.00, five (5) members of the Supervising Agency may be elected 

and the five (5) individuals receiving the greatest number of votes 

at such election shall become members of the Supervising Agency. 

"(b) At an election wherein each member of the Industry is 

entitled to cast one vote, five ( 5) mmnbers of the Supervising Agency 

shall be elected. 

" (c) The members of the Agency so elected shall serve for the 

period of one year from the date of their election or until their 

successors are elected and qualified. 

" (d) In the event of the death or resignation of a member of the 

Supervising Agency, his successor shall be elect€d in the same manner as the retiring member. 

" (e) No affirmative action can be taken by the Supervising Agency 

unless seven (7) members thereof vote in f avor of such action. 

" (f) In addition to the membership as above provided, there may 

be not more than three ( 3) members, without vote and without 

compensation from the Industry, to be known as Administration 

Members, to be appointed by the Administrator to serve for such 

terms as he may specify. 

"(g) The provisions for a Supervising Agency as contained in 

Section 1 of Article VI as originally adopted in this Code shall 

rem.ain in force and effect until the election and qualification of a 

Supervising Agency in accordance with the foregoing provisions." 

AMENDMENT 6. In Article VI-Admini "tration: Delete Section 4. 

AMENDMENT 7. In Article VI-Administration: Amend Section 5 

to designate the same Section 4, in view of the elimination of Section 

4 reported above, numbered 6. 

AMENDMENT 8. In Article VI-Administration : Add a new section to be numbered Section 5 and to read as follows : 

" SEcTION 5. The Supervising Agency shall appoint a Trade Practice Cmnmittee which shall meet with the Trade Practice Committ ees appointed under such other Codes as may be related to the 

Industry for the purpose of formulating fair trade practices to 

govern the relationships between members of the Industry under 

this Code and members of other industries under such other Codes 

to the end that such fair trade practices may be proposed to the 

Administrator as amendments to this Code and such other Codes." 

AMENDMENT 9. In Article VI-Administration: Substitute for the 

present Section 6 the following: 

"SECTION 6. (A) It being found necessary in order to support the 

administration of this Code and to maintain the standards of fair 

competition established hereunder and to effectuate the policy of 

the Act, the Supervising Agency is authorized: 

" ( 1) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purpos·es of the Code; 

" (2) To submit to the Administrator for his approval, subject 

to such notice and opportunity to be heard as he may deem necessary 

(1) an itemized budget of its estimated expenses for the foregoing 
7 

purposes, and (2) an equitable basis upon which the funds necessary 

to support the budget shall be contributed by members of the 

Industry; 

" (3) After such budget and basis of contribution have been ap- proved 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. • 

" (B) Each member of the Industry shall pay his or its equitable 

contribution to the expenses of the maintonance of the Supervising 

Agency, determined as hereinabove provided, and subject to rules 

and regulations pertaining thereto is ucd by the Administrator. 

Only members of the Industry complying with the Code and contributing t~ the expenses of its administration as hereinabove pro- vided, (unless duly exempted from making such contribution) shall 

be entitled to participate in the selection of members of the Super- vising Agency or to receive the benefits of any of its voluntary activities or to make use of any e.mblem or insignia of the National 

Recovery Administration. 

" (C) The Supervising Agency shall neither incur nor pay any 

obligation in exce s of "-he amount thereof as estimated in it approved budget, except upon approval of the Administrator; and no 

subsequent budget hall conta.in any de.ficiency item for expenditures 

in excess of prior budget estimates except tho e which the Administrator shall have so approved." 

AMENDMENT 10. Change the designation of Article VII-Trade 

Practices, to Article VII-A-Trade Practices-General Provisions. 

Al'.£END~fENT 11. In Article VII, to be Article VII-A: In Section 3, 

change the semicolon at the end of said section to a period, and add - the following : 

"Such rental may be calculated (a) by the "Numerical System", 

i.e., a computation for each individual cylinder, or (b) by the" Cylinder Quantity " method, i.e., a monthly computation based on the 

number of days cylinders are retained by cu. tomers in excess of thirty 

(30) days, without regard to any individual cylinder. It shall not 

be permissible to consolidate for rental computation purposes the 

cylinder records of any given customer having more than one receiving point, except for such points as are strictly temporary in character and/or where customer's receiving points are so near to each 

other that the interchang-e of cylinders naturally and commonly 

occurs." · 

AMENDMENT 12. In Article VII, to be Article VII-A: In Section 

4, after the word "warehouse~' insert the words "or freight station 

at the point of origin of shipment" and rearrange wording of clause 

( 1 J to read as follows : 

' (1) a price f.o.b. plant, warehouse or freight station at the point 

of origin of shipment; " 

As so revised said Section 4 will read as follows : 

" SECTION 4. Failing to charge for all gases sold ( 1) a price f.o.b. 

plant, warehouse or freight station at the point of origin of shipment; (2) a delivery charge to be filed by each member of the Industry with the Supervising Agency which shall be open to inspection by any member of the Industry, or otherwise interested party;" 
8 

AMENDMENT 13. In Article VII, to be Article VII-A: Revise Section 8 to read as follows : 

"SECTION 8. Sections 3, 4, 6 and 11 of Article VII-A do not apply 

to medical gases when sold on a gallonage basis for medical use 

only." 

AMENDl\fEXT 14. In Article VII, to be Article VII-A: Insert a 

new Section 9 to read as follows : 

"SECTION 9. No member of the Industrl shall give, permit to be 

given or directly offer to give anything o 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 represented party, 

without the knowlede;e of such employer, principal or party. Commercial bribery provisions shall not be construed to prohibt free and 

general distribution of articles commonly used for advertising except 

so far as such articles are actually used for commercial bnbery as 

hereinabove defined." 

AMENDMENT 15. In Article VII, to be Article VII-A: Insert a new 

Section 10 to read as follows: 

"SECTION 10. Lending, leasing or giving away apparatus designed 

to use oxygen or acetylene, or substitutes therefor, in cutting or 

welding of metals by hand, as differentiated from automatic, semiautomatic or electrically-powered apparatus or equipment or accessories used therewith or manifolds or distributing systems. 

"This provision shall not apply to (a) railroad companies; (b) 

other consumers with whom lending or leasing arrangements were 

in effect prior to June 18, 1934, provided a record of such consumers 

and evidence that such arrangements were in effect prior to said date 

is filed with the Chairman of the Supervising Agency within fifteen 

( 15) days after the effective date of this modification; (c) competitive situations caused otherwise than by a member of the Industry, 

provided that full details shall be reported to the Chairman of the 

Supervising Agency immediately following the execution of any 

agreement made pursuant to this sub-section (c)." 

Al\IEXDl\IENT 16. In Article VII, to be Article VII-A: Insert a 

new Section 11 to read as follows : 

" SECTION 11. All agreements between !f1embers of the Industry 

and r esellers of gases shall specify that the r eseller is required and 

bound in the handling of such products to comply with the provisions set forth in the foregoing Sections 1, 3 and 4, provided, however, that nothing in this Section shall be construed to mean that 

r esellers of gas ar e bound to file t he same rental or deliYery charges 

filed by any member of the Industry; and it shall also be mandator3r 

on members of the Industry either to r equire correction of any rep orteu infra ction of such Sections by a. r eseller or to terminate its 

agr eement with such r eseller within thirty (30) days after notice 

from the Snpervi in ')' Agency that such r eseller ha been guilty of 

and ha not corrected such infraction." 

AMENDMENT 17. After the end of A rtic1e VII, to be Article VII-A: 

] nsert a new Article VII-B-Tracle Practices- Special }.fedical 

Gas P r ovisions, to r ead as f ollo\YS : " I n addition to the trade pr actices set forth in Article VII-A, 

the following prfl,ctices in the manufacture and distribution of 
9 

medical gases constitute unfair methods o:f competition and are 

prohibited: 

"SECTION 1. Consigning or storing products of the Medical Gas 

Industry on property of any user or purchaser or prospective purchaser theroof to be paid for as sold. ' SE~"""TION 2. Giving or l nding any products or equipment or 

other facilities in conjunction with the u e of ~1edical Gases with- out making adequate and proper charge therefor, as an inducem nt 

t o obtain any competitor's business by contract or otherwise; pro- Yided, however, that thi provision shall nto be construed to prohibit 

the placing of equipment on trial or upproYal in good faith for a 

period not to exceed thirty (3D) days. 

"SECTION 3. \V"ithin ixty (60) days from the effective date of this 

amendment each member of the medical gas division shall file a 

schedule of monthly cylinder rental charges, individually prepared 

by the members, with the Supervising Agency, which schedule shall 

take effect immediately upon being filed and hall be based upon 

the net value of cylinders out tanding at the end of each month 

with an allowance of a normal free loan period without rental 

charges of thirty days, which under no circumstances shall be ext ended beyond ninety ( 90) days. 

"Each schedule may be changed by filing with the Supervising 

Ao·ency revised schedule to take effect al o immediately upon filing. 

The Supervising Agency shall make such prices available to the 

in pection by the public at its official place of business during usual 

offic hours. No member of the medical gas division shall charge 

les for rental of cylinders than the rate set forth on a cylinder 

r ental charge schedule as filed with the Supervi ing Agency, or 

r ebate such charge if justly made.', 

AMENDl\IENT 18. In Article IX, lines 8, 13 and 15 change the 

term "members of the Code" to read "members of the Indu try." 

AMENDMENT 19. In Article VII, to be Article VI I-A: Add the 

following Section 12: 

"SECTION 12. The proYisions set forth in the foregoing Sections 3, 

4 and 5 shall not be construed to require making or collecting charges 

for or with respect to products of the Industry sold under contracts 

in effect at the effective elate of the Code, other than the charges 

provided for in such contracts; provided, however, that the said 

provisions shall apply with respect to extended or renewal periods 

of any snch contract extended or renewed by a member of the 

Industry." 

ApproYed Code No. 155-Amendment No. 1. 

Registry No. 1150-02. 

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UNIVERSITY OF FLORIDA 

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