Per sale by the Superintendent of Documents, Washington, D.C. - Price 5 centa
Anmmmdfin~de No. 246
Reglistry No. 1608-02
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MILK BOTTLE CAP INDUSTRY
AS APPROVED ON FEBRUARY 1, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
This publiention is for sale by the Superintendent of Documents, Government
Printing Office, T~ahingto~n, D.C., and by district offices of the Bureau of
Foreign a7nd Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlauna, Ga.: 504 Post Office Building.
Birminghalm, Ala. : 257i Federal Building.
Bosto~n, M~as.: 18011 Custombouse.
Buff'ulo, Nr.Y.: Chambher of commerce Building.
Charlestonl, S.C.: Chamber of Commerce Building.
rChJic~ago Ill.: Suite 1706G. 201 N'orth W~ells Street.
i:Cleveland. Ohio: Chambler of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
De~troit, Mic~h.: 801 First National Bank Building.
Houston, Texl.: Charmber of Commerce Building.
Indianilpolis, Ind.: Chaimber of Commerce Budlding.
Jacksoj~nville, Fla.: Chamber of Commerce Build~ing.
Kannsas City, MIo.: 1028 Baltimore Avenue.
Los Ange~les. Calif.: 1163 South Bro~adwa~-y.
Louisville, Kg.: 4108 Federal Building.
Mlemphis, Tenn.: 229 Federal Building.
M~inneap~olis, M~inn.: 2137 FtedernI Building.
New Or~leans, La.: Room ~22.L, Custombouse.
New Y'ork,; N.Y'.: 7341 Customholluse.
No~rfolk, Va.: 406~f Ealst Plume Street.
P'hilade~lphin, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Por'tland, Oreg.: 215 New Post Office Building.
St. Louis, MoI:.: 506 Olive Street.
San Franlc~isco. Calif.: 310 Custombouse..
Seattle, Walsh.: 809 Federal Office Building.
.Approved Code No. 246
CODE OF FAIR COMlPETITION
PAPER DISC MIILK BOTTLE (CAP INDUSTRY
As Approved on Felbruary 1, 1934
APPROVING CODE OF FAIR COMPETITION FOR TH-E PAPER DISO 1I~LK~
BorrLE CAP INEDUSTRY
An appnlication havingr been duly m~ade pursuant to and in full
compliance wvith the provisions of TIitle I of the3 National Indus-
trial Recovery Act (approved June 16, 1933, for approval of a
Code of Fa.ir Compet~tiion for the Paper Disc Milk Bottle Cap
Industry, and hearings having been duly held thereon and the an-
nexed report on said Code, containing findings with, respect thereto,
having been made and directed to the President:
NOWV, THEREFORE, on behalf of the President of the U~nited
States, I, Hugah S. Johnson, Administraitor for Industrial Riecovery,
pursulant to authority vested in m~se b~y Executive Orders of the
President, including Executive Order No. 6543-A, dated Decem-
ber ;30, 1933, andi otherwise; do hiereby 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 A1~ct; and do hereby order thcat
said Code of Fair Competition be and it is hereby approved; pro-
vided, however, that th~e provisions of Article VI: sections 2 to 9,
inclusive, insofar as they prescribe a waiting per~iol betweenn the filing
with the Code Authority (i.e., actual receipt by the Code Authority)
and the effective date of` revised price lists or revised terms and
conditions of sale be andl they are hereby stayed pending my further
order; provided further that within ninety days I may direct that
there be a further hlearing on such of the provisions of said Code as
I maoy designate and that. any order whichl I may make after such
hearing shall hae: the effect. of a conditions on the approval of
Huan S. JOH NSON,
Admi~nistrat~or for I1ndustria7 l Recov~ery.
Approval recommended :
GEO. L. BERRY,
D ivlisionz. A~dmnlnist~at or.
Febrzua~yl 1, 19i34.
REPORT TO THE PRESIDENT
The W~hite Housae.
SmR: This is a report of the hearing on the Code of Fair Competi-
tion for the Paper Disc M~ilk Bottle Ca~p Industry, conducted in
WaC'shingtoni on November 27, 1933, in accordance with provisions
of Title I of the National Industrial Recovery Act.
HOURS AND WVAGES
This Code. provides a standard 40-hour week for factory w~orkiers
withl a wreekly~ tolerance of eight hours to be paid for as overtime.
The ulsuln ex-cePtions a re made in regard to noniproductive employees.
Office employees are limited to an average of 40 hours per week
over an eight-week p~eriod.
The minimum wage in t~he North for hourly paid employees is 410$
per hour for males and 350 per hour for females. In t~he South the
minimuum wage rate for hourly paid employees is 35$ per hour for
males and 300 per hour for females. Office employees will receive
a2 mlinimuml'l wagRLe of $16.00 per weelk in the North and $14.00 per
week in the South.
OPEN PRICE PLAN
A~n onPn n'pric plan of shelling is provided, and selling below cost,
except to meet competition, is prohibited.
Provision is masde for furnishing the Administrator with such
sbtatistical data as he may require.
ECONOMIIC EFFECT OF THE CODE
The Industry employed about 4150 people in 1929. Figures sub-
mitt~ed by 19 of the 23 plants in the Indust~ry show about the same
number of employees in M~arch 1929 and in M~arch 1933 at which
timne over 63S9 of the employees worked 45 hours per week or
longer. The effect of the Code will be to employ about 90 addi-
In Rlarch 1933, 34% of the male labor received less than 400
per hour and 98%~ of the female labor less than 35e per hour. The
total increase in pay rolls as a result of the Code will be approxi-
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 pro-
-ceedings in this matter;
I find that.:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of thie National Industrial Recovery Act, including
remnoval of obstructions to the free flow of int-erstate and foreign com-
merce which tendt to dliminish the amount thereof and will provide
for the general welfare by tpromotinga the organization of industry
for the purpose of cooperative action among the trade groups, by
inducing andi maintaining ~united action of labor and management
under adequate governmental sanctions and supervision, by elim-
inating unfair competitive practices, by promoting~ the fullest pos-
sible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as muay b
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power,
by reducing and relieving nmlyetb mrvn tnad
of labor, and by otherwise rehabilitating industry.
(b) Said Indu~stry normally employs 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 ) of Section 3, Subsection (a) of Section 7,
and Subsection (b) of Section 10 thereof; and that the applicant
association is an industrial association truly representative of the
aforesaid Industry; and that said association imposes no mnequit~able
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.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be hneard prior to approval of said
For these reasons this Code has been approved.
HJUGH S. JOHNSON,
A dmliini tra~to r.
FEBRUARY i, 19j4.
CODE OF FAIR COMPETITION FOR THE PAPER DISC
MILK BOTTLE CAP I~NDUSjTRY
To effectuate the policies of Title I of the National Industrial Re-
covery Act, the following is hereby established as a Clode of Fair
Competition for the above-namied Industry and shiall be binding on
every member thereof.
The following words are used in this Code with t~he meaning herein
set. fourth :
"~ Industry "-The manufacture of Paper Disc Mfilk Bottle Caps.
"' Member "-A natural person, partnership, corporation, associa-
tion, trust, trustee, trustee in bankruptcy, or receiver engaged in such
"Act "--Title I of th~e National Induistrial Recovery Act.
"'Adm )1inistrantor "--Thie Admn i istratorr for Ind ustri al Recovery under
Title I in the Act.
AnnTcLE ~II-ORGAN\IZATION AND ADMIINISTRATION
1. There'shall forthwith be constituted a Code Aut~hority of the
Paper Disc Milk Bottle Cap IIndustry which shall comprise five (5)
members. Three (3) of suchr members shall be elected annually by
thle memnbers of thre National A~ssociationl of Bottle Cap> M~anufne-
turer~s, and one (1) shall be elected annually by the m~embers of the
Intdustry, not members of sraid Association. Onre (1) additional
members shall be appointed by the four (41) memnbers so elected. In
addition the Administratorl may appl-oint one (1). or more~ persons
to the Code A-1uthority wvho shall act in an ~advisory capacity, shall
'have no vote, and shall serve without compensation from the
2. In order to carry out the election of the Industry members of
the Code Author~ity in an orderly and proper manner, the following
procedure is prescribed: M~anager of said Association or Chairman
of the ExecutivIe Committee! of said Association shall send all nemn-
bers of the Industry, including nonmembers as :well as members of
the Acssociation, notice of a meeting for the purpose of electing mem-
ber~s of Code Authority, such notice shall be sent out at least ten
days in advannce of such election da.te. Each nonmember of the
Association shall be entitled to one vote for one member of the Code
Authority to represent members of the Industry who are not mem-
bers of the Association. Each Association member shall be entitled
to vote for three members of the Code Authority. Each vot~er shall
be a members or a duly authorized representative of a member. No
member of t~he Indu~stry will be allowed to east the vote of another
member of the Industry by proxy. In the event nonmembers of the
Association fail to elect a representative on the Code Authority, the
Admlinistrator may appoint suchi representative.
;3. The said Association shall impose no inequitable restrictions
on membership and shall file with t~he Administr~atorr certified copies
of any amendments of it~s B~y-Law~s, relating to eligibility_ or admis-
sion to membership in such Association, or relatingr to the method
of selection of the members of such Code Authlority which such AQsso*
citation may thereafter adopt.
4. The Admiinisistrato may at any time prescribe a different
method for selecting the Industry members of the Code Authority,
an~d thereafter, such members shall be chosen in the manner so
5. The Code Author~ity is charged generally with the duty of ad-
m1inistering this Code. If the Admninistrator shall determine that
any action of the Code Authorityr or anyv agnencyr thereof is unfair
or unjust or contrary to the public interest, the Admninistrator may
require that such action be suspended to afford an opportunity for
investigation of the merits of such action and further consideration
by t.he Code Authority or agency pending final action which shall not
be effective unless the Administrator approves or unless he shall
fail to disapprove after thirty days' notice to himi of intentions to
proceed with such action. in its or~iginal or modified form.
6. The expenses of admninister~inlg this Code shall be borne pro
rata, in accordance with a formulan to be adopted by the Code
Authority, by all members of the Industry who accept the benefit
of the services of the Code Authlority or otherwise assent to this
7i. The Code Authority shall have powPer to investigate alleged
violations of this Code and acts or courses of conduct by any member
which are or appear to be contrary to the policy of the Act or which
tend or may tend to render ineffective this Code and to report th~e
same with recommendations to the Administrator.
8. The Code Authority is hereby constituted the agency to en-
deavor to effect, by arbitral proceedmgs or otherwise, adjustments of
contracts entered into by members of the Industry, where the costs
of executing such contracts are increased through the application of
the p~rovrisions of the Act or of this Code.
ARTICLE l[II--11URS OF LABOR
1. Employees in the Industry shall not be required or permit~tedl to
work hours in excess of the limits prescribed in the following sched-
S;CHEDULE OF WORKING HOURS
(a) Watchmen: Fifty-six (56) hours in any one week, but not
mor~e than six (6) days in any seven (?) day period, or fifty-six
(56) hours in any one week, but not more than eight (8) hours in any
one dlay. I: i
(b) Chauffeurs, truckdlrivers, and their helpers: One hundred
eighty (180) hours in any period of four (4) consecutive weeks,
provided, however, that time worked in excess of nine (9) hours in
any one day or forty-five (45) hours in any one week shall be paid
for as not less than time and one t.hird.
(c) Engineers, firemen, electricians, filter plant employees, elec-
tric and hlydroeflectric operators: One hundred sixty-eight (168)
hours in any period of four (4) consecutive weeks, provided, how-
ever, that time worked in excess of nine (9) hours in any one day or
fortyr-Hye (45) hours in any one week shall be paid for as not less
than time and one third.
(d) All other laborers, mechanical workers, or artisans employed
in any plant, mill, or factory or on work connected with the opera-
tion of such p~lant, mill, or factory: Eight (8) hours in any one da~y
and forty (40) hours in any one week, provided, however, that these
maximum limits may be exceeded for any reason at any timne provided
that all time worked in excess of! the maximums prescr~ibedt shall
be paid for as not less than time and one third, and plrovidedl, fur-
th~er, that no employee shall be required or permitted to wor~k in
excess of ten (10) hours in any one day or forty-eight (48) hours in
any one week.
(e) Emnployees r~egularly engaged in a mnannagerial or executive
capacity and their personal secretaries, foremen and supervisors,
receiingr thiirty-five ($35.00) dollars or more per week, outside sales-
mnen and outside servicemen: N~io limitation.
(f) All other eprloyees:; Forty~-eight (48) hour in any one week
but not to exceed three hundred twenty (320) hours in any period
of eight (8 )consecutive veek~s.
2No limitation contained in said schedule shall applyl! to emlployr-
ees of any class when engaged in emnergency repanis or emergency
maintenance wor~k ocensioned by br~eakdowns 'or: involving protection
of life or property, provided, however, that all time worked in
excess of the limnitations prescribed in. saidl schedule shall be paid
for as not less than time and one thirdl.
3. No employer shall knowingly permit any employee to workl for
anly time which, when totaled with that already pe~rform-~ed wvit~h
another employer or employers in this Industry, exceed~s t~he maxi-
mum permitted herein.
ARTICLE ITT-- VAGCES
1. The minimum rate of wage of any laborer, mnechnni~cal worker
or artisan employed in any plant, mill, or factory or on work con-
nect~ed with theL operation of any such plant, mill, or factory shall
be as follows:
(a) In the NIorthern. zone, which shall consist of all the terri-
tory of the .United S~tates except the States namedl inl subdivision
(b) hereof :
Mlale labor, 40 cents per hour.
Female laibor, 35 cents per hour.
(b) In the Sout~hern zone, which shall consist of t~he States of
Virginia, Tennessee, North Ca~rolina, South Carolina, Georgia, Filor-
ida, Alabama, M\ississippi, Louisiana, Arkansas, and Texats:
Mralte labor, 35 cents per hour.
Female labor, 30 cents per hour.
2. The. minimum rates of wages for all other emlployvees shall be
(a) In the Nor~thern zone, as defined in Section 1 hereof, $16.00
(b) In t~he Southern zone, as defined in said Section, $14.00 per
(c) Part-time employees covered by the provisions of this section
shall be paid at the rate of not less than 40~ per hour in the North
anld 354 per hour in the South.
3. This A~t~icle establishles a m~inimumn rate of pay which shall
applyl ir~respective of whether an employee is netually comnpensat~ed
on time-rate, piece-work, or other basis.
4. Female emlployee~s performing substantially the same work~ as
male employees shall rtc~eive the same rate of pay as male emp~lloyees.r
The Code. Authority shall wFpithin 90 days after the effective date of
this Code file w~ith th~e Ad~cministrator a description of all occupa"tion's
in the Indlst~ry in which both men and women are employed.
5. The wage rantes of all employees receiving more than the min-
imum rates herein prescribed shall be reviewedl and such adljustments,
if any, made ther~ein as are equitable in the light of all the circum~-
stances, and within sixty (60) days after the effective date hereof,
thle Code Author~ity sh-a~ll report to the Administrator the action
tanken by all mlember~s o-f the Industry under this section.
6. Office boys and girls under 18 years o~f age, to the exte~nt~ of no
mlore tha~n 5%~ of the total numnberp of employees described in Section
2 her1eof, may be emlployed at a wage of nrot less than 80';, of the
minimlum pr~escr1ibedl by said Section pro-vided that at least one such
office boy or girl mnay be employed by each member.
7. A person whose learning capacity is limited because of age or
physiedl or mental ha~ndicapnl may be employed on light worcrk at a
wagre of not less than 80'% of the minimlum prescribed by this Code,
provided the State Author~ity or other agency designated byT the,
United States Depar~tmentl of Labor shall have issued a certhiicate
authorizing his emlploymnent on such basis. Each member shall file
with the C~ode Authorrity a1 list of all such persons employedf by him.
Trhe provision of this .Sect~ion requiring; a certificate, olf authority
shall not become effective until sixty days after the effective date
of this Code.
ARTICLE VI( GENERL LABOR PROVIsIONS
1. No person under sixteen (1~6) years of ag~re shall be employed in
the Indlustr~y. No person umder eighteen (18) years of age shall be
emlployed at operations or occupations which are hazar~dous in nature
or dlangrerous to healt~h. The Codle Aiuthlority shall submit to the
Admlinistrattor within sixty (60) day~s after the effective date of thhis
Codle a list of such operations or occupatioins.. In any State an
employer shall be deemed to have complied with this provision as to
age if he shall have on file a certificate or permit duly signed by the
authority in such State empowereed to issue employment or age
certificates or permits, showing that the employee is of the
23. Empn~loyees nshll have t~he right to organize and bargain colle'c-
tively 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 of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection. No
employee and no one seeking employment shall be required as a
condition of employment to join any company union or to refrain
fronm iomnigr organnjizg, or assisting a labor organization of his
own choosing. Employers shall comply with the maximum hours
of labor, minimum rates of pay, and other conditions of employment,
appovedl, or prescribed by the President.
;3. No provision 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 protec-
tion! than are imposed by this Code.
4. No employer shall reclsiyemployees or duties of occupations
performed- or engage in any oter subterfuge for t~he purpose of
dlef eating the purposes or provisions of the Act or of this Code.
5. All employers shall post copies of Article III, IV, and V of this
Code in conspicuous places accessible to employees.
6. Everyr employer shall mlake reasonable provisions for the safety
and health of his employees at t~he place and during the hours o
their employment. Standards for safetyT and health shall be sub-
miitted by the Code Authority to the Administrator within six (6)
months after the effective date of this Code.
7. No provision in this Code shall supersede provisions as to
hours, wages, and conditions of employment which are established
for specific projects by competent governmental authority acting
in accordance with law, or to terms of employment which are estab-
lished by labor agreements now in force, where either the wages
ar~e higher or the hours of labor are shorter, or both, than are those
set forth in this Code.
8. The Code Authority shall make a study of conditions in the
I~ndustryr to determine the feasibility of the adoption of a shorter
working week and shall, within three (3) months after the effective
date of this Code, make a report of its findings to the Administrator.
The Code Authority shall also submit to the Administrator within
six (6) months after the effective date of this Code, a plan for the
stabilization and regularization of employment.
9. The manufacture or partial manufacture of any product of the
Industry in homes shall be prohibited.
AnnIcLE VI--AccoU NTIhoG-SELLI~NG
1. The: Code Authority shall, as soon as practicable, formulate?
a standard method of accounting andi costing for the industry andl
submit the same to the Administrator. WVhen it shall have been
approved by the Administrator, every member shalI uIse an account-+
ing and costing system which conforms to the principles of, and
is At least as detailed and complete as, such standard method.
2. The Code Authority may from time to time determine that
an open price plan of selling such product or products of thle Inrdus-
try' as it shtall specify shall be put into effect on such date as it shall
fix. Notice of such determrination shall be announced to all known
members of the Industry who manlufactur~e such products not less
than 30) days pr~ior to the date so fixed.
3. At least. ten days prior to such date, every such member shall
file with thle Code Authlorit~y a schedule of prices and terms of sale
for all such products or, in the alternative, ~shall be deemned to have
filed a schedule conforminga in respect to price and terms of sale with
the schedule at any time on file wh]ich states the lowest, price and the
most favorable termls.
4. All such schedules shllll be in such form as the Code Aut~hority
shall prescribe and shall contain all information :necessary to permit
any interested person to determine the exact net price per unit after
all discounts or other deduc~tions have been made, whether p~erta.ininga
to a single order, a commitment for future delivery~, or a contract.
All sucht original schedules shall become effective on. the date fixed
by thne Code Authority as provided in Section 2 hlereof.
5. A :revised schedule or sch~edules, or a new schedule or schedules,
or a notice of withdrawal of a, schedule previously filed, mnay) be filed
by a members withl the Code Authority at any time, provided, how-
ever, that any memberr whlo withdraws a schedule without sulbstitut-
ing a new schedule threrefor shall be deemed to have filed a schedule
conformling in respect to price and terms of sale with the schedule
at anyr time thereafter on file wcphich states the lowest price and- the:
mlost fanvorable termls. A~ny schedule or notice filed hereunder shall
become effective five days' after the dat~e of filing, provided, however,
that on increased ~pr ice may become effective at such earlier date as
the member filinga the. same shall ~fix.
6. The Code Aut~hor~ityr shll prompltly supply all mlemnbers of the
Indlusrry who ma~nufa-cturle any particular product with copies of all
schedules, revised schedules and notices of withdrawal, which per-
t.aiin to such produc~t. Immledliately uplon receipt of information rela;-
tive to the withdlr~awil of a pr1ice for any product, any member ma
file notice of wvith~dlrawal of his onprice for the same pr~oduc~t. ef-
fect~ive as of the same date as the notice of wcithdrawral of such other
member. Immediately on receipt of information that a schedule
then on file has been r~evised~, or that a newr schedule has been filed,
any m~emb~er may file a revisedl schedule conformninlg as to price and
terms to the schedule of such other member, and effective on the same
date, of r hu~~e ma notify the Codfe Authority that he adopts as his own
the cheuleof uch the meber Inthe latter event, hze shall
be deemed to have filed a revised schledule conformningr to the revised
schedule of such other member.
7. No such schedule of prices and terms of sale filed by any mem-
ber, or in effect at any time, shall be such as to permit the sale of
any product at less than the cost thereof to such member dletermlined
in the manner provided in ~Section 1_1 hereof, provided, how~eer, tha~t
any member may by notice to the Code A~uthority adopt as his o~wn
a lower price filed by another designated member. Such adoption
shall become automatically void upon the withdrawal or revision
upward of the price adopted.
8. No member who shall have filed a price, or adopted as his own,
a price filed by another member for any product of the Industry,
shall sell such product for less than such price or upon terms or
condlitionls more favorable than stated in such price schedule. No
member, who shall have failed to file a price for any product for
which the open price' plan is in effect, shall sell such product at a
lower price or on terms more favorable than the lowest price and
most favorable terms stated in any price schedule for such rdc
then on file.
9. The Code Authority shall furnish at cost to any non-member
reqeueting them, copies of any price schedules which have been filed
with it. Such price schedules shall be made available to nonmem-
ber~s at the same t~ime that they are sent to members.
10. NPo member shall sell any product of the Industry for which
no open price plan is in effect at less than the cost thereof to such
member, det~ermined as provided in Section 11 hereof, except to meet
the price of a competitor whose price does not violate such Section.
11. Cost, for the purposes of this Article, shall be determined
pursuant to the method of accounting and costing prescribed as pro-
vided in Section 1 hereof as soon as such method is adopted, and ap-
proved, and theretofore pursuant to the method employed by such
member subject to such preliminary rules as the Code Authority
shall fromt time to time prescribe with the approval of the Admin-
12. ]For the purpose of determining whether Sections 7 and 10
hereof have been complied with, every member shall upon the re-
quest of the Code Authority furnish a designated agency of the
Code ALuth~ority in respect to closed transactions only, with com-
plete information in regard to any quotation, order, contract, or sale
of any~ product of the Industry, including information as to specifi-
cations, quantities, price, conditions of storage, transportation or
deli~very, terms of billing, cash or trade discounts allowed and other
pertinent facts relating to such quotation, contract or sale.
13. NTothing herein contained shall be construed to prevent the
disposition of distress merchandise required to be sold to liquidate a
defunct or insolvent business or of discontinued lines, damaged
goods or seconds, in such manner at such price and such terms and
conditions as the Code Authority and the Administrator may
14. Nothing herein contained shall be construed to prevent the
fulfillment of a bonia fide contract existing on the effective date of
ARTICLE \IIT-REPORTS A\ND STATISTICS
1. Each member shalll prepare and file with an impartial agent
desigrnated by the Codle Authority at such times and in such manner
as it. mayR p~rescribe,~ su1ch statistics, data, and information relat~ingr to
plant capacity, volume of production, volume of sales in units and
See paragraph 2 of order approving this Code.
dollars, orders received, unfilled orders, stocks on hand, inventory
both ra~w and finished, number of emlployees wage rIates, emaployee4
earnings, hours of wor~k, and other matters, as the Code Authority
or the Admninistr~ator mla3y from time, to time require. Any or all
information so furnished by any member shall be subject to checkr-
inga for t.he purpose of v-erification by an examination of the books,
accounts, and records of such member by any dlisinter~ested~ account-
ant or accountants or, other qualified person or persons designated by
the Code Alut~hority.
2. Except. as otherwise providedl in the Act, or in this Code, all
statistics, data, and information filed or requiredi in. accordance with
t~he provisions of this C'ode shall be confidential and the statistics,
data, and information of one member shall not be revealed to an-
othler member. No such dlata or information shall be published
except in combination with other similar data and inz such a man-
ner as to avoid the dlisclosur~e of confidential information. Thre Code
Aut.horit~y shall arrange in such ma-nner as it may determine for the
current publication of industry statistics to mlember~s.
3. The Code Authority shall mnakre such reports to the Adm-inis-
trator as hie mzay from time to time require.
4. In addition to information required to be submitted to the Code
Aluthorityr there shall be furnished to G~overnmnent Agrencies such st.a-
tisticazl information as the A~dmrinist~rator may deem necessary for
the purpose recited in Section 3 (a) of the Act.
1. Nio provision of this Code shall be so applied as to perm~it
monopolies or monopolistic practices, or to eliminate, oppress, or
discrumnante against small enterprises.
A~RTICLE IX--REC'OMM ENDATIO.NS
1. The Code Au~thority may, from time to t~ime, present to the
Admini~str~ator recommelndl~ationsn based on conditions in the Indus-
tr~y whiich1 will tendl to effectuaste the operation of this Code and the
policy of the Act, an'd in par~ticularr along the following lines:
(a) For t~he establishlment of additional rules of fair-trade prac-
tice for the IndI~ustryc and~ for the modification of its trade customs,
and the enforcement thereof.
(b) For the establishment of plans to eqiualize production with
demland, so that thle interests of thle Inldustry and the public may be
(c) Forrl dealinV with a~ny other inequality t~hat. may arise to en-
langer- the -tabiity of the Industry and of production and
(d) For an increase or decrease in the number of Industryr mem-
bers9 of theP CoeI Au~t.honrityv and/or for. a. change in the method of
choosing such membe~rs.
2>. For the purpose of assisting the Code Aulthorities of the Paper
Manufacturing and,'or Converting Ind-ustr~ies in the adjustmnentt of
all labor dlisp~utes and labor complaints arIising wcpit~hin such indus-
tries, th~e Code Aluthorit~y shall co~nsidler the advisability of creating
a Joint Industrial Relations Board for such Industries and shall
report its recommendations to the Administrator.
3. Recommendations made pursuant to Sections 1 and 2 hereof
when approved by the Admimistrator shall have the same force and
effect as other provisions of this Code.
ARTICLE XC-TRADE PRACTICES
1. The following are hereby constituted Trade Practices for the
Ind~ustryS and failure to comply with the provisions thereof shall be
a violation of this Code.
(a) Mlembers of the Industry shall not practice deception in
regard to that which is sold or its selling price by false or misleading
description? statement, record, or undisclosed consideration.
(b)r 1\llhIemer shallI refrain from duimpi;n g deferred delivery, exr-
tension of stated credit, and secret rebates.
(c) M~embers shall not wilfully injure by falsely defaming a
competitor's goods, credit, or ability to perform his contracts.
(dl) 1\ember~s shall not wilfully induce or attempt to induce the
breach of a competitor's contract.
(e) No member shall give, permit to be given, or directly offer
to give, anytr.hing of value for th~e purpose of influencing or reward-
ing th~e action of any employee, agent, or representative of another
in relationi t~o the business of the employer of such employee, the
principl~n of such agent, or the represented partly, without the knowl-
edlge of suchi employer, principal, or party. The foregoing pro-
visions shall not be construed to prohibit free and general distribu-
tioni of ar~ticles commonly used for advertising except so far as such
articles are actually used for commercial bribery as herein defined.
(f) No mlember of the Industry shall ship goods on consignment
except under circumstances to be defined by the Code Authorityr,
where peculiar circumstances of the Industry require the practice.
(g) No member shall extend to a customers special prices, services,
or privileges not extended t~o all puchasers in the same classification
and under lik~e t~ermns and conditions.
2. In the event of a demand upon any member for a cap not
included in member's previously filed schedules and definitions,
the member mnay set a temporary price including a proper upcharge
to cover the additional cost.
3. (a) Members are responsible for the acts of their sales repre-
sentatives or sales agents in respect to all provisions of this Code
pertaining to sales as provided in Article VI. Violations of the
provisions of this Code as pertainling to sales by members' sales rep-
resentatives, or sales agents, constitute a violation of this Code on
the part of t~he member.
(b) The giving by members or their representatives or sales agents
of secret commissions, secret or open rebattes, refunds or credits in
the form of money, presents, free goods, advertising allowances, or
otherwise for the purpose of inducing sales or contracts, is a direct
violation of the provisions of this Code.
(c) M~emlbers'! sales r~epr~esentatives or sales agents are persons,
par~tnership, or corporations employed by a member or members on
whole- or part-time basis; and compensated onl the basis of salary,
commission, both salary and commission, or othlerwF7ise.
4. When entering into contracts providingr for partial shipments
the governingr price shall be t.he pr~ice. qu~ot~edby the mlember~l for the
total quantity of the contract, provided, that no mltlilembe shall sell
to a customer, w~ho is listed inl the Nationn1 A~ssociatio n of Bottle Cap
1\Ianufact~ur~ers' official r'atinig boo~k and supplemiients and revisions
thereof, any product of thle Indu~strya at a price based~ upon, a greater
qualntity~ thann the q-uantity listedl for suc~h cuslitomer~1 in said~ rating
book. On all other orders t~he governing price shall be the price
quoted by a members inl accordcance writh the prov~\isions~ of A~rticle VI
of this Code.
A~RTIC'LE X;I-GCENER.\L PRnovISIojNs;
1. If any member is also a mlemiber of another industry, the pro-
visions of thlis Code shlall apply1? to and affect only that part of his
business whIich1 is inclluded il thlis Ildustr'y.
2. Any work or process incidlental to, and ener1iedt on by a miemberi l
at his plant as a part of the mannufactuire of any prioduct of, the
Industry, shall be regarded as a ,a~rt of thiis Industry.
3. Such of the provisions of this Code as are not -Iirequ~ire to be
inc~ludedl therein byv the ALct, may, w~ith the approval of the Admin-
ist-rator, be modifie~d and eliminated as changesj in c~i~c~umstances or
experience may indicate.
41. This Codie andl all the provisions thereof are exprecssly made
subject to the right of the President, in necorda~nce with the pro-
vrisions of Sec~tion 10 (b) of the Act;, from time~c to time to cancel or
mlodify any~ ord(:er, approval, license, rule, or regulation, issued under
Title I of said A~t, and specificallly, but without limitation, to the
Iiright of t.he Pr~esident to cancel or modify his approval of such. Code
or any conditions imposed by him ulponl his appro'-val thereof.
5. This Code shall become effectivet on the second MPIondany after
th~e date uponl which it shall be appr~oved by the! President of the
App~roved code No. 2416.
Registry No. 160:8-4)2.
3 1262 08584 1871