UNIVERSITY OF FLORIDA
I1 1 111 11 1 III I Illlllllllllllll 111 1lll 1
3 1262 08482 9299
.. -- dment No. 1
Registry No. 1022-1-03
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
CAP AND CLOSURE
AS APPROVED ON DECEMBER 20, 1934
! i I
L.. L. : .U 1
GOVERNMENT PRINTING OFFICE
For sale by the SuperintendentofDocuments, ahington, D. Cce
For sale by the Superintendent of Documents, Washington, D. C. Pric 6 centa
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N. Y.: C'l;iamil-rl of Commerce Building.
('lChirhI-.ton, S. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 Customhouse.
Norfolk, Va.: 406 E:i-t Plume Street.
Pliiladclpl.ia. Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Fedf-r.il Office Building.
Approved Code No. 58-Amendment No. 1
AMENDMENT TO CODE OF FAIR COMPETITION
CAP AND CLOSURE INDUSTRY
As Approved on December 20, 1934
APPROVING AMENDMENT OF CODE OF FAIR COMPETITION FOR THE CAP
AND CLOSURE 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 an amend-
ment to the Code of Fair Competition for the Cap and Closure In-
dustry, and a hearing having been duly held thereon and the
annexed report on said amendment, containing findings with respect
thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise,
does hereby incorporate by reference said annexed report and does
find that said aimnndminit and the Code as con-tituted after being
amended comply in all respects with the pertinent provisions and
will promote the policy and purposes of said Title of said Act, and
does hereby order that said amendment be and it is hereby approved,
and that the previous approval of said Code is hereby amended to
include an approval of said Code in its entirety as amended.
NATIONAL INDUSTRIAL RECOVERY BOARD,
ByW. A. HARrIMAN, ,Ad idmlinihrati'e Officer.
K l.,,P. R N 'E JOHNSTON,
Acting D;'-is;vrn Adm;inis trator.
W.SI!INGTON, D. C.,
December 20, 1934.
104240- 133S-123- 31
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the amendments to the Code of Fair Com-
petition for the Cap and Closure Industry, to incorporate certain
rules for Fair Trade Practices as affecting the Moulded Cap Division
thereof. These amendments were proposed in accordance with Arti-
cle IV of the Code as approved on October 20, 1933, a public hearing
on the proposed amendments having been held on December 27, 1933.
The Deputy Administrator in his final report on said amendments
to said Code having found as herein set forth and on the basis of all
the proceedings in this matter:
We find that:
(a) The amendlliciits to said Code and the Code as amended are
well de i-igned to promote the policies and purposes of Title I of
the National Indlltrial RPecovery Act, including the removal of
obstructions to the free flow of intcretate and foreign commerce which
tend to diminish the amount thereof, and will provide for the general
welfare by promoting the organization of industry for the purpose
of cooperative action among trade group., by inducing and maintain-
ing united action of labor and niiaiiigetmiiei't under adequate govern-
mental sanction and supervision, by el imiuiating unfair competitive
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 required), by increasing
the consumption of industrial and agricultural products through
incre;,i-ig purchasing power, by reducing and relieving unemploy-
in I#.t, by improving -t:iida:rds of labor, and by otherwise rehabili-
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limitation
Subsection (a) of Section 3, Subsection (a) of Section 7, and Sub-
section (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendments on behalf of each or all of the Divisions of the
(d) The Code and the Code as aimendled are not designed to and
will not permit monopolies or monopolistic practices.
(e) The iiinliidiiints and the Code as amended are not designed
to and will not eliminate or oppress small eniterpri:.-.s and will not
operate to dicrim~iniate against them.
(f) Those engaged in other .teps of the economic proe-.-, have
not been deprived of the right to be heard prior to the aplprovlJ of
For these reasons, therefore, these amendments s have been approved.
For the National Industrial Recovery Board:
W. A. H.'ARnIAN,
Adminh ;~trativc Officer.
DECEMBER 20, 1934.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE CAP AND CLOSURE INDUSTRY
Amend Section 2 to read as follows:
"The rules for Fair Trade Practice for the Moulded Cap Division
as set forth in Schedule B attached hereto are specifically made a
part of this code."
Renumber present Section 2 of Article V as Section 3.
Add the following as
RULES FOR FAIR TRADE PRACTICE FOR THE MOULDED CAP DIVISION
SECTION 1.-Each member of the Division shall file with a confi-
dential and disinterested agent of the Code Authority or, if none,
then with such an agent designated by the National Industrial Recov-
ery Board, identified lists showing all of his prices, discounts, rebates,
allowances, and all other terms or conditions of sale, hereinafter in
this article referred to as price terms ", which lists shall completely
and accurately conform to and represent the individual pricing prac-
tices of said member. Such lists shall contain the price terms for
all slcli standard products in the Division as are sold or offered for
sale by said member and for such non-standard products of said mem-
ber as shall be designated by the Code Authority. Said price terms
shall in the first instance be filed within ten days after the date of
approval of this provision. Price terms and revised price terms shall
become effective immediately upon receipt thereof by said agent.
Immediately upon receipt thereof, said agent shall by telegraph or
other equally prompt means notify said member of the time of such
receipt. Such lists and revisions, together with the effective time
thereof, shall upon receipt be immediately and simultaneously dis-
tributed to all members of the Division and to all of their customers
who have applied therefore and have offered to defray the cost actually
incurred by the Code Authority in the preparation and distribution
thereof and be available for inspection by any of their customers at
the office of such agent. Said lists or revisions or any part thereof
shall not be made available to any person until released to all mem-
bers of the Division and their customers, as aforesaid; provided, that
prices filed in the first instance shall not be released until the expira-
tion of the aforesaid ten day period after approval of this provision.
The Code Authority shall maintain a permanent file of all price
terms filed as herein provided, and shall not destroy any part of such
records except upon written con-ent of the National Indiutrial Re-
covery Board. Upon request the Code Authority shall furnish to
the Natioail Industrial Re)\:covry Board or any duly designated
agent of the National Indu.trii:l Recovery Board copep: of any such
lists or revisions of price terms.
Section 2. When any member of the Division has filed any revi-
sion such member -hall not file a higher price within forty-eight
Section 3. No member of the Division shall sell or offer to sell
any products of the Division for which price terms have been filed
pursuant to the provision of this article, except in accordance with
such price terms.
Section 4. No member of the Division shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms nor cause or attempt to cause any member of the Divi-
sion to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this article to create.
Section 5. Nothing in this Schedule contained shall be so con-
strued as to prevent the performance by any member of any valid
bona fide contract made and entered into before the effective date
of this provision; provided, however, that such contract has not been
made and entered into before the effective date hereof in contempla-
tion thereof and with the intent to defeat the purpose thereof.
Section 6. For all purposes of the Code the following-described
acts shall constitute unfair practices:
A. No member of the Division shall brand or mark or pack any
goods in any manner which tends to deceive or mislead purchasers
with respect to the brand, grade, quality, quantity, origin, size, sub-
stance, character, nature, finish, material content or preparation of
B. No member of the Division shall secretly offer or make any pay-
ment or allowance of a rebate, refund, commission, credit, unearned
discount, or excess allowance, whether in the form of money or other-
wise, nor shall a member of the Division 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 .-ale.
C. No member of the industry shall give, permit to be given, or
directly 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 represented party, without the
knowledge of such employer, principal or party. Commercial brib-
ery provisions 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 herein-
D. No member of the Division shall permit sales agents or repre-
sentatives to split commissions with purchasers.
E. No member of the Division shall make false invoices.
Approved Cctle No. 5s-Aniendmnent No. 1.
Registry No. 1022-1-03.