Registry No. 1304-1-02 

NATIONAL RECOVERY ADMINISTRATION 

C·ODE OF FAIR COMPETITION 

FOR THE 

COMPRESSED AIR INDUSTRY 

AS APPROVED ON oc,oB~ { 11, 19'33 

BY 

, au 

PRESIDENT ROOSEVELT 

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1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHING TON : 1933 

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(II) 
EXECUTIVE ORDER 

CODE OF F .AIR COMPETITION 

FOR THE 

COMPRESSED Arn 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 my approval of a Code of 

Fair Competition for the Compressed Air Industry, and hearings 

having been held thereon and the Administrator having rendered 

his report containing an analysis of the said Code of Fair Competition, together with his recommendations and findings with respect 

thereto, and the Administrator having found that the said Code 

of Fair Competition complies in all respects with the pertinent provisions of Title I of said Act and that the requirements of clauses ( 1) 

and (2) of subsection (a) of Section 3 of the said Act have been 

met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by Title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and approve the report, recommendations, 

and findings of the Administrator and do order that the said Code 

of Fair Competition be and is hereby approved. 

FRANKLIN D. ROOSEVELT. 

THE vV HITE HousE, 

. October 11, 1933. Approval recommended: 

HUGHS. JOHNSON, 

Ad1ninistrator. 

(IIIi 

16451°-18--6-33 
THE PRESIDENT 

OCTOBER 9, 1933. 

The White House, Washington, D.O. 

MY DEAR :MR. PRESIDENT: I have the honor to submit and recommend for your approval, the Code of Fair Competition for the 

Compressed Air Industry. 

The following documents are included or attached: 

1. Executive Order 

2. Report of Deputy Administrator 

3. Industrial Advisory Board Approval 

4. Labor Advisory Board Approval 

5. Consumers' Advisory Board Approval 

6. Legal Division Approval 

7. Research and Planning Approval 

8. Research and Planning Report (Statistical) 

9. Original Letter of Transmittal from Industry 

10. A sent of Industry 

11. Notice of Hearing 

12. Authorization of Code Committee to Act 

13. List of Witne ses 

14. Constitution and By-Laws of Association 

15. Transcript of Hearing 

An analy is of the provisions of the Code has been made by the 

Administrator. I find that the Code complies with the requirements 

of the National Industrial Recovery Act. 

I am, my dear Mr. President, 

Very sincerely yours, 

(IV) 

HUGH s. JOHNSON' . 

Administrator. 
CODE OF FAIR COMPETITION FOR THE COMPRESSED AIR 

INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policy o:f Title I o:f the National Industrial Recovery Act, the :following provisions are submitted as a Code of 

:fair competition :for the Compressed Air Industry, and upon approval by the President shall be the standard o:f :fair competition 

for this Industry. 

ARTICLE II-DEFINITIONS 

The term "compressed air industry" as used herein is defined to 

mean the 1nanu:facture :for sale o:f air and gas compressors ( requiring more than 10 H.P.), reciprocating vacuum pumps and pneumatic 

machinery and/or parts thereof other than refrigeration equipment. 

The term "person" as used herein shall include but without limitation natural persons, partnerships, associations, trusts, trustees, truste-es in bankruptcy, receivers, and corporations. The term "employer" as used herein shall include every person actively engaged 

1n the manufacture :for sale o:f the products o:f the compressed air 

industry as herein defined. The term" effective date" as used herein 

is defined to be the eleventh day after this Code shall have been approved by the President o:f the United States. 

ARTICLE III-APPLICANT 

This Code is· presented by COMPRESSED AIR INSTITUTE, a 

trade association, all the members of which are engaged in the manufacture :for sale o:f the products o:f the compressed air industry as 

herein defined in association with Machinery and Allied Products 

Institute, o:f which Compressed Air Institute is a constituent member. 

ARTICLE IV-EMPLOYMENT 

As required by Section 7 (a) o:f Title I o:f the National Industrial 

Recovery :A.ct, it is hereby provided:-

" 1. That employees shall have the right to organize and bargain 

collectively through representatives o:f their own choosing, and shall 

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

labor, or their agentsi in the designation of such representatives or in 

self-organization or 1n other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection: 

"2. That no employee and no one seeking employment shall be required as a condition of employment to jmn any company union ~or 

to refrain from joining, organizing, or assisting a labor organization 

of his own choosing; and 

(1) 
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3. That employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions of employment, approved or prescribed by the President." 

ARTICLE V-W AGES 

(a) On and after the effective date no employer shall employ any 

one under the age of 16 years; provided, however, that where a state 

law provides a higher minimum age, no person below the age specified by such state law shall be employed within that state. 

(b) On and after the effective date the minimum wage that shall 

be paid by any employer to any unskilled employee engaged in the 

production of the products of the compressed air industry and in 

labor operations directly incident thereto shall be 40 cents per hour, 

unless the rate per hour for the same class of labor on July 15th, 

1929, was less than 40 cents, in which case the rate per hour paid shall 

be not less than the rate per hour paid on July 15th, 1929, and provided, that in no event shall the rate per hour paid be less than 35 

cents, and provided also that learners ( other than apprentices as defined in paragraph ( d) of this Article V) may be paid not less than 

80 percent of such minimum wage but the total number of learners 

&hall not exceed 5 percent of the total number of employees covered 

by the provisions of this paragraph (b) and provided, further, that 

after three months of work learners shall be paid not less than the 

minimum wage herein provided. · 

( c) On and after the effective date the minimum wage that shall 

be paid by any employer to all employees other than those engaged 

in the production of the products of the compressed air industry and 

in labor operations directly incident thereto shall be at the rate of 

$15 per week, whether calculated on an hourly, weekly, monthly, 

piece-work:. or any other basis in accordance with the usual custom 

of the employer, provided, however, that office boys or girls may be 

paid not less than 80 percent of such minimum wage, but the total 

number of such office boys or girls shall not exceed 5· percent of the 

total number of employees covered by the provisions of this 

paragraph ( c). 

( d) Nothing in this Article V shall apply to, or affect a bona-fide 

apprentice employed under a system or course of training which, 

when completed, will make the apprentice a skilled mechanic. 

( e) Not later than 90 days after the effective date each employer 

in the compressed air industry shall report to the Administrator 

through the Supervisory Agency, hereinafter provided for, the 

action taken by such employer in adjusting the hourly wage rates for 

all employees receiving more than the minimum rates provided in 

paragraph (b) of this Article V, but receiving less than $35 per week 

of regular work period. 

ARTICLE VI-I-Iouns 

On and after the effective elate no employer shall employ any empl yee except executives, administrative, supervisory, and technical 

employees and their respective staffs, who are paid at the rate of 

$35 or more per week, traveling, sales and service employees: watch-
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men, and firemen, in excess of 40 hours per week, provided, however, 

that these limitations shall not apply to conditions 0£ seasonal or 

peak demand which create an unusual and temporary burden £or 

production or installation; in such special cases such number 0£ hours 

may be worked as are required by the necessities o:f the situation, 

but not to exceed 48 hours per week :for any 6 weeks in any calendar 

6 months' period; and provided :further, that these limitations shall 

not apply to employees on emergency, maintenance, or repair work 

or to very special cases where restriction o:£ hours o:£ highly skilled 

workers would unavoidably reduce or delay production. Where in 

any case an employee whose hours 0£ work are herein specified ( other 

than salaried employees) shall work in excess 0£ 8 hours per day at 

least time and one third shall be paid :for the excess hours worked. 

ARTICLE VII-ADMINISTRATION 

Compressed Air Institute is hereby designated an agency £or promoting the performance 0£ the provisions of this Code by the members of the compressed air industry; provided, however, that no inequitable restrictions upon membership in such Institute shall at any 

time be imposed. 

With a view to keeping the President 0£ the United Stutes 

and the Administrator informed as to the observance or non-observance 0£ this Code, and as to whether the compressed air industry 

is taking appropriate steps to effectuate in all respects the declared 

policy 0£ the National Industrial Recovery Act, each employer shall, 

when required by the Supervisory Agency, prepare and file with 

such person or organization as the Supervisory Agency may designate, an earnings statement and balance sheet in a form prescribed 

by the Supervisory Agency. Each employer shall likewise prepare 

and file with such person or organization as the Supervisory Agency 

may designate and at such times and in such manner as may be 

prescribed, statistics o:£ plant capacity, volume 0£ production, volume 0£ sales in units and dollars, orders received, unfilled orders, 

stocks on hand, inventory, both raw and finished, number o:£ employees, wage rates, employee earnings, hours 0£ work, and such 

other data or information as the Supervisory Agency may :from 

time to time require. In addition to information required to be 

submitted to the Supervisory Agency, there shall be furnished to 

Government agencies such statistical information as the Administrator may deem necessary :for the purpose recited in Section 3 (a) 

o:£ the National Industrial Recovery Act. 

ARTICLE VIII-SUPERVISORY AGENCY 

To administer and supervise, and to facilitate the enforcement of 

the provisions o:£, this Code there shall be a committee o:£ five members connected with the compressed air industry called the Supervisory Agency. The President or the Administrator may appoint 

not more than three additional members without vote. The committee shall be elected at a meeting o:£ employers called immediately 

after the approval by the President o:£ this Code and held immediately prior to the effective date thereof. The meeting shall be 
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called by Compressed Air Institute, and notjce thereo:f shall be sent 

by telegraph and registered mail to all known manu:facturers in the 

compressed air industry. The notice shall specifically state that voting at the meeting may be in person or by proxy. The members of 

the committee shall be elected by a vote of the employers present 

in person or by proxy at such meeting passed in two ways: 

(a) One member, by a majority vote o:f employers present in 

person or by proxy as such and 

(b) Four members, by a 51 % vote by employers present in person 

or by proxy weighted on the basis o:f one vote :for each $50,000 o:f 

sales of products o:f the industry made in the calendar year 1932 as 

reported to the Secretary of Compressed Air Institute, but each employer shall have at least one vote. Members 0£ the Committee to 

fill vancancies due to death or resignation or because a member 

thereof has ceased to be connected with the industry shall be elected 

at meetings of employers called by Compressed Air Institute on at 

least ten (10) days notice by registered mail' sent to all known manufacturers in the compressed air industry. At such meetings the vote 

shall be taken in the manner hereinabove described. 

If formal complaint is made to Compressed Air Institute or to 

the Supervisory Agency that the provisions of this Code have been 

violated by any employer, the supervisory agency or the proper 

supervisory committee hereinafter provided :for shall make such 

investigation as in its opinion is necessary. 

ARTICLE IX-STATISTICS CONFIDENTIAL 

Except as otherwise provided in the National Industrial Recovery 

Act, all statistics, data, and in:f ormation filed in accordance with 

the provisions of Article VII shall be confidential ; and the statistics, 

data, and information of one employer shall not be revealed to any 

other employer, except that for the purpose of :facilitating the administration and enforcement o:f the provisions of this Code the 

Supervisory Agency, by their duly authorized representatives (who 

shall not be in the employ of any employer affected by this Code), 

and the Administrator shall have access to any and all statistics, 

data, and in:formation that may be furnished in accordance with 

the provisions of this Code. 

ARTICLE X-OPEN TO ALL EMPLOYERS 

Any member of the compressed air industry is eligible for membership in the Compressed Air Institute. Any employer shall be 

entitled to vote on and share in the benefits of the activities of the 

Supervisory Agency, and may participate in any endeavors of Compressed Air Institute in the preparation of any revisions of or additions or supplements to this Code by accepting his proper pro rata 

share of the reasonable cost of creating and administering it, as 

determined by the Supervisory Agency. 

ARTICLE XI-AccouNTING AND CosTING 

Every employer shall use an accounting system which conforms 

to the principles of and is at least as detailed and complete as the 
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uniform and standard method of accounting and the uniform and 

standard method of costing to be formulated or approved by the 

Supervisory Agency, with such variations therefrom as may be 

required by the individual conditions affecting any employer or 

group of employers and as may be approved by the Supervisory 

Agency and made supplements to said formulated or approved 

methods of accounting and costing. 

ARTICLE XII- No SELLING BELOW CosT 

No employer shall sell or exchange any product of his manufacture at a price or upon terms or conditions that will result in the 

customer paying for the goods received less than the cost to the seller, determined in accordance with the unifonn and standard method 

of costing hereinabove prescribed, provided, however, 

1. That inventories which must be converted into cash to meet 

emergency needs, dropped lines or seconds, may be disposed of in 

such manner and on such terms and conditions as the proper super• 

visory committee may approve and as are necessary to move such 

products into buyers' hands, and provided, further, 

2. That selling below cost in order to meet existing competition 

on products of equivalent design, character, quality, or specifica• 

tions shall not be deemed a violation of this Article if provision 

therefor is made in supplemental Codes for any branch or sub• 

division of the industry, which may be hereafter prepared and duly 

approved by the President. 

ARTICLE XIII-PRICE LISTS 

If the Supervisory Agency determines that in any branch or 

sub-division of the compressed air industry it has been the generally 

recognized practice to sell a specified product on the basis of printed 

net price lists, or price lists with discount sheets and fixed terms of 

sale and payment, each manufacturer of such product shall within 

ten (10) days after notice of such determination file with the Supervisory Agency a net price list or a price list and discount sheet, as 

the case may be, individually prepared by him, showing his current 

prices, or prices and discounts, and terms of sale and payment, and 

the Supervisory Agency shall immediately send copies thereof to all 

known manufacturers of such specified product. Revised price list 

and/ or discount sheets may be filed from time to time thereafter with 

the Supervisory Agency by any manufacturer of such product, to 

become effective upon the date specified therein, but such revised 

price lists and/or discount sheets shall be filed with the Supervisory 

Agency twenty (20) days in advance of the effective elate, unless 

the proper Supervisory Committe shall authorize a shorter period. 

Copies of such revised price lists and / or discount sheets with notice 

of the effective date specified, shall be immediately sent to all known 

manufacturers of such product, who thereupon may file, to become 

effective upon the date when the revised price list and/ or discount 

sheet first filed shall go into effect, revisions of their price lists and/or 

discount sheets establishing prices or prices and discounts not lower 

than those established in the revised price lists and/or discount sheets 

first filed. 
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If the Supervisory Agency shall determine that in any branch or 

subdivision of the compressed air industry not now selling its product on the basis of price lists, with or without discount sheets, with 

fixed terms of payment, the distribution or marketing conditions in 

said branch or subdivision are the same as or similar to the distribution or marketing conditions in a branch or subdivision of the industry where the use of price lists, with or without discount sheets, 

is well recognized, and that a system of seliing on net price lists or 

price lists and discount sheets with fixed terms of payment should 

be put into effect in such branch or subdivision, each manufacturer 

of the product or products of such branch or subdivision shall within 

twenty (20) days after notice of such determination file with the 

Supervisory Agency net price lists or price lists and discount sheets, 

containing fixed terms of payment, showing his prices and discounts 

and terms of payment, and such price lists and/ or discount sheets 

may be revised in the manner hereinabove provided. 

'the Supervisory Agency shall have power on its own initiative or 

on the complaint of any employer to investigate any price for any 

product shown in any net price list or price list with discount sheet 

filed with the Supervisory Agency by any employer, and, for the 

purpose of the investigation thereof, to require such employer to 

furnish such information concerning the cost of manufacturing and 

selling such product as the Supervisory Agency shall deem necessary 

or proper f or such purpose. If the Supervisory Agency after such 

investigation shall determine that such price is an unfair price for 

such product, having regard to the cost of manufacturing and selling 

such product, and that the maintenance of such unfair price may result in unfair competition in the industry and be contrary to the 

spirit of the National Industrial Recovery Act, the Supervisory 

Agency may require the employer that filed the list or discount sheet 

in which such unfair price is shown to file a new list or discount sheet 

showing a fair J?rice for such product, which fair price shall become 

effective immediately upon the filing of such list or discount sheet. 

If such employer shall not within ten (10) days after notice to it 

of such determination by the Supervisory Agency file a new list or 

discount sheet showing such fair price for such product, the Supervisory Agency shall have power to fix a fair price for uch product, 

which fair price, however, shall not be more than the price of any 

other employer at that time effective for such product, and in respect 

of which the Supervisory Agency shall not theretofore have begun an 

investigation or a complaint shall not have been made by any employer. When the decision of the Supervisory Agency fixing such 

:fair price shall have been filed with the Secretary of Compres ·ed Air 

Institute and the Secretary shall have given notice thereof to such 

employer, such fair :price shall be the price for such employer for 

such product until 1t shall have been changed as in this Code 

provided. 

No employer shall sell directly or indirectly by any means whatsoever, any product of the indu try covered by the provisions of this 

Article at a price lower or at discounts greater or on more fa,orable terms of :payment than those provided in hjs current net price 

lists or price lists and discount sheets. The operation of this Article XIII shall at all times be subject to review by the Administrator. 
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ARTIOLE XIV-DISTRIBUTORS RESALES 

No employer shall cooperate in the violation of this Code by 

selling to or through any distributor who does not agree to resell 

only in accordance with the provisions of this Code. This Article 

shall be in effect until the approval by the President of a Code for 

such distributors. 

ARTICLE XV-ExPORT SALES 

The provisions of this Code concerning sales shall not apply to 

direct export sales of any product, or to sales of any product destined 

ultimately for export, or to sales of parts used in the manufacture 

of products for export. The term "export" shall include shipments 

to foreign countries and to the territories and possessions of the 

United States. 

ARTICLE XVI-INDUSTRY .GROUPS 

Aggregations of employers having a common interest and common 

prol;>lems will be grouped by Compreseed Air Institute for administrative purposes in various sub-divisions or product classifications 

and report of such grouping made to the Administrator. In each 

sub-division or product _ classification there will be a supervisory 

committee appointed by the Supervisory Agency and report thereof 

made to the Administrator. 

ARTICLE XVII-STATUS PRIOR TO EFFECTIVE DATE 

Prior to its approval by the President, applicant may at any time 

change or modify any provision of this Code ( except those provisions 

required by Sections 7 (a) and 10 (b) of the Act), or may withdraw 

this Code. 

The applicant will not be deemed to have consented to any change 

or modification of this Code which may be effected by the President's 

order of approval, unless such change or modification is submitted 

to the applicant and consented to by the applicant. 

ARTICLE XVIII-RIGHTS OF PRESIDENT 

The President may from time to time cancel or modify any order, 

approval, license, rule, or regulation issued under Title I of the 

National Industrial Recovery Act. 

ARTICLE XIX-AMENDMENTS AND ADDITIONS 

Such of the provisions of this Code as are not required by the 

National Industrial Recovery Act to be included herein may, with 

the approval of the President of the United States, be modified or 

eliminated as changed circumstances or experience may indicate. 

This Code is intended to be a basic Code, and study of the trade 

practices of the compressed-air industry will be 'continued by the 

Executive Committee of Compressed Air Institute with the inten-
UNIVERSITY OF FLORIDA 

II I II IIIIII Ill Ill lllll lllll II IIIIII II IIIIII IIII Ill llll lllll Ill I I 

8 3 1262 08584 1921 

tion of submitting, from time to time, to the Administrator for 

approval additions to or revisions of this Code applicable to all 

employers in the compressed-air industry and supplemental Codes 

applicable to one or more branches or subdivisions or product classifications of the compressed-air industry, such supplemental Codes, 

however, to conform to and be consistent with the provisions of thi<:> 

Code as now constituted or hereafter changed. 

ARTICLE XX-SEGREGATION OF INDUSTRY 

If any employer of labor in the compressed-air industry is also an 

employer of labor in any other industry, the provisions of this Code 

shall apply to and affect only that part of his business which is 

included in the compressed-air industry. 

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