Code of fair competition for the crown manufacturing industry


Material Information

Code of fair competition for the crown manufacturing industry as approved on November 1, 1933 by President Roosevelt
Portion of title:
Crown manufacturing industry
Physical Description:
v, 7 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. G.P.O.
Place of Publication:
Publication Date:


Subjects / Keywords:
Bottle cap industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
Registry no. 1608-1-01.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004952639
oclc - 31959191
System ID:

Full Text

Registry No. 1608--1-01





I -'
Por sale Iby the Superintendent of Documents, Washington, D.C. - Price 5 cents

1. Executive Order
2. Letter of Transmittal
3. Code







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 Commeree.
Atlanta, Ga.: 504 Post Office Building.
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Seattle, Wash.: 809 Federal Building.



An application having been dully 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 a.pproval of a Code of
Fair Competition for the Crown M~anufacturinga Industry, and hear-
ings 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 com-
petition complies in all respects with the pertinent provisions of title I
of said act and that the requirements of clauses (1) and (2) of subsec-
tion (a) of section 3 of the said act have been met:
NOW, THEREFORE, I, Franklia D. Roosevelt, President of the
United States, pursuant t~o the. authority vested in me by title I of
the National Industrial Recovery Act, approved June 16, 1933, and
otherwiise, 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.
November 1, 1938.
Approv-al recommended:
A4dm inistrator.

OCTOBER 25, 1933.
The Wthite House.
SIa: The proposed Code of Fair Competition for the Crown
Manufacturing Industry was submitted to the Administrator on
August 9, 1933, by the Crons manufacturers' Association of Almerica
representing 93%1 of the known members of the Industry. The
Hearing was conducted in Wrashington on September 15, 1933, and
the Code was revised during the recess of this Hearing and is sub-
mitted in its present form for approval. Every person w~ho requested
an appearance was properly heard in accordance with statutory and
regulatory requirements.
The Industry is relatively small, having in 1929 only 1,640 employ-
ees and is distinguished from the Cap and Closure Industry in that
it is engaged in the manufacture of beverage-bottle closures which
are fabricated from cork and and are used principally upon
pressure beverages.
During the past four years the IndustryT experienced a drop of
approximately 31%0 in the unit volume of sales. This was coincident
with the drop of 30%/ in the number of employees. It is estimated
189340 ,18-12b---38 (IIT)

thst, t~he insertion of the Labor Provisions of this Code will necessitate
a 66% increase in e-mploymnent over the average number employed
in 1932 and that 88S50,000 will be added to the yearly pay roll.

Risvnue or CODE

ARTICL.E I. States the purpose of the Code.
ART. II. Accurately defines specific references made in the Code.
ART. III. Sets forth the M~andatory Labor Prov-isions, minimum
age requirements, maximum hours, and minimum wage rates. The
maxsimuml hours are limited to 40 per week for factory employees
averaged over a six months' period, but, are not to be in excess of
48 hours in any one w~eek. Power plant firemen, and engineers,
employees engaged in emergency maintenance and emergency repair
workl, a~nd highly skilled artists and metal lithographers (the latter
are rest~rict.ed to a maximuml of 541 hours in any one week) are excepted
fromt the above provisions, but in all cases where the above employees
are required to work in excess of 40 hours in a~ny ek h ae
paid shall be at, a, rate of not less than one Pn~d one third times the
prevailing rate. The maximum hours for accounting, clerical, office,
service, and sales employees except outside salesmen) are limited to
40 hours per week except that in not more than six weeks in any six
months' period such employees shall be permitted to work 48 hours
per week.
The mlinimumn wrage rate for factory, mechanical, and artisan em-
ployvees is 40~ per hour for male labor and 35~ per hour for female
labor. The minimum wage rate for accounting, clerical, office, serv-
ice, and sales employees (except outside salesmen) varies from $15.00
to $14.00 w-ith the population. Apprentices and learners without
previous experience may not constitute more than 5%0 of the total
number of employees and their wagres shall not be less than 80%0 of
the specified minimums. The period of apprenticeship and learning
is limited to one month. Higher-paid employees are protected by an
equitable readjustment clause.
ART. IVT. Establishes a Code Authority of five members elected by
the Industry with additional (not exceeding three) representatives
t~o be appointed by the Administrator and provides machinery for
obtammig statistics.
AnT. V~. Establishes an open-price structure with no limitation
placed upon the prices any firm may quote.
ART. VI. Except~s export sales from the provisions now included or
hereafter to be included in Article V.
AaR. VII. Sets forth t~he Fair Practices for the Industry.
ART. VIII. Contains the mandatory provisions respecting amend-
ment~s and provisions respect~inga state law~s and price increases on the
products of the Industry.
ART. IX. Sets forth the action to be followed in the event of a
violation of t~he Code.
ART. X. States the effective date.

The Administrator finds: A. This code complies in all respects with
the pertinent phrases of Title I of the A4ct including without limitation
subsection A of Section 7 and subsection B of Section 10 thereof,
B. The Crown Manufacturers Association of America is truly repre-
sentative of the Crown MIanufacturing Industry and the bylaws of
this Association contain no inequitable restrictions on membership,
C. The Code is not designed to promote monopolies or to eliminate
or oppress small enterprises and wfill not operate to discriminate
against them and will tend to effectuate the policy of Title I of the
National Recovery Act.
It is recommended, therefore, that this Code be approved.
Adm inistrator.


To effectuate the policy and purpose of the National Industrial
Recovery Act the following provisions are established as a Code of
Fair Competition for the Crown Mlanufacturing Industry, and shall
be binding on every member thereof.

SECTION 1. The term "the Industry" means and includes the
business of producing in the United States and selling crown caps.
SEC. 2. The term "member of the Industry means any person
engaged in the Industry as herein defined either as an employer or
on his own behalf.
SEC. 3. The term "The Association" means the Crownl Mlanufac-
turersr Asscia~;tion of America, 218 MurnseyT Bulding, Washington,

SEc. 4. The terms "President", "Act", and "Administration" as
used herein shall mean respectively the President of the United States,
the National Industrial Recovery Act, and the Administrator of said
SEc. 5. The term "employee" as used herein includes anyone
engaged in the industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
SEc. 6. The term "employer as used herein includes anyone by
whom any such employee is compensated or employed.
SEc. 7. The term "plant" means a plant engaged in the Industry
as herein defined.
SEC. 8. L1LIR Ority Vote."~ Each member of the Industry shall be
entitled to one vote for each full million gross of shipped sales re-
ported for the previous calendar year; provided, that no member shall
have more than five votes; and further provided, that each member
shall have at least one vote irrespective of the shipped sales grossage
reported for the previous calendar year.
At any meeting of members of the 'Industry, members thereof hav-
. ing the right to cast at least 60%4 of all the votes shall constitute a
quorum. Fifty-one percent (51%) of the votes which would be
cast if all members were present sha 1 constitute a majority vote.
SEc. 9. The terml "Code Authority means t~he Admzinistrative
body provided for in AQrticle IV of this Code.

SECTION 1. Employees shall have t~he right to organize and bargain
collect;Tivel through representatv~es of their own choosing, and ball
be free froml 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 t~o join any company union or to reframn
from joilmng, orgamizmg, or assisting a labor organization of lus own
Employers shall comply with maximum hours of labor, minimum
rates of pay, and other conditions of employment, approved or pre-
scribed by t~he :President.
Sec. 2. No person under 16 years of age shall be employed in the
industry, nor anyone: under 18 years of age at operations or occupa-
tions hazardous in nature or detrimental to healt~h. In any State an
employer shall be deemed to have complied with this provision if
he shall have o~n file a cert~ifcate or permit duly issued by t~he authority
in such: State empowered to issue employment or age certificates or
permits, showing that. the employee is of the required age.
SEc. 3. Hours.-(!n) The maximum number of working hours for
all employees in the Industry, except as hereinafter provided, shall
not be in excess of forty (40) hours per week averaged over a six
months' period, and not in excess of fortyS-eight. (48) hours in any one
week. For the purpose of this paragraph, the balance of the year
1933, from the effective date of this Code to December 31, 1933, in-
clusive, shall be considered the first period. Subsequent periods
shall begin on January Ist, and July Ist, to end on June 30th and
December 31st, respectively.
The .maximum hours fixed in th~e foregoing paragraph shall not
apply to the followving employees:
Highly skilled artists and metal lithographers where restrictions of
hours would unavoidlably reduce production, but no such employees
shall work or be permitted to work in excess of fifty-four (54) hours
mn any one w5eek;
Power plant firemen and engineers;
Employees engaged in emergency maintenance and emergency re-
pair work involving breakdowns or protection of life and/or property.
Not less than time and one-third time shall be paid for hours worked
in excess of forty (410) hours in any one week.
(b) Office or Branch Employees: The maximum number of work-
ing hours for office or branch employees in the Industry shall not be
in excess of forty (40) hours per week; provided, however, that a~ny
such employee may be permitted t~o work not more than forty-eight
hours per week in not more than six weeks of any six months' period.
(c) The provisions of this section shall not apply to executives and
their personal secretaries, and supervisors and their immediate
assistants ha~vingo supervisory duties (excepting foremen regularly
engaged in ma~nua~l labor receiving less than $35.00 per weekr), outside
salesmen, technical employees, and watchmen; provided, however
that watchmlen shall be limited to fifty-four (54) hours per week andf
provided further that the limitation of hours prescribed in this seo-

tion shall apply to all1 proprietors, executives, partners andi super-
visors when they shall be engaged in production or mechanical work.
(d) The Industry recognizes the desirabilityr, and accepts the prin-
ciple of, the five-day week as these principles relate to working sched-
ules for employees. Insofar as it reasonably can, the Industry will
endeavor to employ its labor on that basis.
(e) No employee shall be permitted to work for two or more
employers for a longer period in any week than is specified herein for
a single employer.
SEc. 4. W~lages.--No employer shall pay any accounting, clerical,
office, service, or sales employee (exTcept outside salesmen) less than
at the rate of $15.00 per week in any city of over 500,000 population,
or in the immediate trade area of such city nor less than at the rate
of $14.50 per week in any city of between 250,000 and 500,000
population, or in the immediate trade area of such city: nor less than
at the rate of $14.00 per week in any city or town of 250,000 or less
population .
SE;C. 5. No employer shall pay any marle factory or mechanical
worker or artisan less than'forty (40e) cents per hour or any female
factoryT or mechanical worker or artisan less than thirty-five (35$)
cents per hour; provided that when the Code for the Graphic Arts is
approved, there shall be a review of the provisions relating to maxi-
mum hours, mminmum wsages, and conditions of employment apphi-
cable to the employees in t~he Crown M~anufacturing Industry engaged
in work similar to that covered by t~he Code for the Graphic A9rts.
It is agreed that this paragraph establishes a guaranteed minimum
rate of pay regardless of whether the employee is compensated on the
basis of a time rate or on a piecework performance.
Female employees doing substantially the same work as that per-
formed by male employees shall receive a rate of compensation equal
to that of such male employees.
Apprentices and learners without previous experience in the In-
dustry shall be excepted from the provisions of this Section; provided,
however, that the total number of such apprentices and learners shall
not constitute more than five (5%) percent of the total number of
employees subject to the provisions of this Code in any one plant,
and provided, further, that t~he wages paid to such apprentices and
learners shall not be less than eighty (80%/) percent of the mlinimum
rates of payr specified in this Code; and, provided further, the period
of apprenticeship or learning shall not exceed one month.
SEc. 6. The wage differentials for all operations shall be equitably
readjusted and in no case shall they be decreased. Each member of
the Industry shall report all such readjustments to the Code Authority
within thirty days of the effective date.
SEc. 7. Each employer shall post in conspicuous places full copies
of the Labor Provisions of this Code (Article lIII and Article VrIII,
Section 2).
SECTION 1. To effectuate the policies of the National Industrial
Recovery Administration and to provide for administration of this
Code within the Industry, a Code Authority of five members shall
be.established by the Industry. Furthermore, upon the request of
t~he Administrator, nonvoting representatives not to exceed three in

number, to be appointed by him, shall be added to such Code
Authority. All employers engaged in the Industry as herein defined
shall be entitled to participate in the election of such members of the
Code Authority. Such election shall be by a majorityV as defined in
Section 8 of Article II. The Administrator upon review may dis-
approve or modifyv the method of selection of the Code Authority.
Each trade or industrial association directly or indirectly patrtici-
pating in the selection or activities of the Code Authorityv shall:
(1) Impose no inequitable restrictions on membership, and (2) sub-
mit to the Admimistrator true copies of its articles of association
bylaws, regulations, and any amendments when made thereto, to-
gether with such other information asj to membership, organization,
and activities as the Administrator may deem necessary to effectuate
the purposes of the Act.
In order that the Code Authority shall at all times be truly repre-
sent~ative of the Industry and in other respects comply with the
provisions of t~he Act, the Aldministrator may provide such hearings as
he may deem proper; and thereafter if he shall find that the Code
Authority is not truly representative or does not in other respects
comply with the provisions of the Act., may require an appropriate
modification in the method of selection of the Code Authority.
SEc. 2. The Code Authority shall have the following duties and
powers to the extent permitted by the Act, subject to the right of
the Aldministrator on review to disapprove or modify any action
taken by the Code Authority:
(a) The Code Auithority shall be charged with the supervision,
administration, andi enforcement of this Code and mayv issue such
rules, regulations, and impose ulpon any member of the Industtry
subject to the jurisdiction of this Code such restrictions as may be
necessary t.o effectuate the purposes of this Code. The Code Author-
ity shall have the right to establish its own rules for the conduct of
its business.
(b) In order that the President may be informed of the extent of
observance of the provisions of this Code and of the extent to which
the declared policy of t~he National Industrial Recovery Act is being
effectuated in the Industry as herein defined, the Code Authority
shall make such reports as the Administrator may require, and each
member of the IndustryT shall meake such sworn or unsworn reports
to the Code Authority periodically, or as often a.s it may direct, on
wages, hours of labor, conditions of employment., number of em-
ployees, production, shipments, sales, stocks, prices, and other
matters pertinent to the purposes of this Code as the Code Authority
ma~y require, and each member of the Industry subject to the juris-
dict~ion of this Code and accepting the benefits of the activities of
the Code Authority hereunder shall either become a member of the
Association or pay to the Code Authority his proportionate share of
the limounts necessary to pay the cost of the assembly, analysis and
publication of such reports and data, and of the maintenance of the
said Code Authority and its activities. Said proportionate share
shall be based upon volume of net sales.
In addition to information required to be submitted to the Code
Authority, there shall be furrnished to Government Agencies such
statistical ~information as thle Admninistrator may deem necessary for

the purposes recited in Section 3 (a) of the National Industrial
Recovery Act.
(c) The Code Authority shall appoint a secretary and any and all
information requested by the Code Authority shall be filed with the
secretary and deemed confidential and shall not be~ divulged to any
member except in summary, but shall be available to the Adminis-
trator upon request.
(d) The Code Authority may designate the Crown Mannufac-
turers' Association or any other appropriate agency to assist it in
carrying out the powers and duties conferred upon It by this Code,
provided, that the Code Authority shall not be relieved of responsi-
bilty and that when such Association acts in such capacityT, it shall
comply with all the provisions of this Code applicable to the Code
(e) The Code Authority may from time to time appoint such sub-
committees or designate such agencies, and may delegate to any of
them such of its powers and duties, as it shall deem necessary or
proper in order to effectuate the provisions and purposes of this Code.
(f) The Code Authority shall receive, and if it shaUl approve, shall
present for the approval of the Administrator, any proposals for
supplementary provisions or amendments of this Code or additional
codes, applicable to the Industry defined herein or to any part there-
of, with respect to wageUIs, ous trade practices, or related matters
or conditions in the Inur.
SEc. 3. (a) Any interested party shall have the right of complaint
to the Code Authority and of a prompt. bearing and decision thereon
in respect to any decision, rule, regulation, or other course of action
of such Code Authorit~y. Su~ch complaint muft. be failed in wrrit~ing
with the Code Authority within a reasonable period of time after
said decision, rule, regulation, or course of action is issued or taken.
The decision of such Code Authority may be appealed by any in-
terested partly to the Admuinistrator.
SEc.' 4. Any decision, rule, regulation, order, or finding made, or
couirse of action followed pursuant to, or any provision of, this Code,
may be cancelled or modified by the Administrator whenever he
shall determine such action necessary to effectuate the provisions of
Title I of the National Industria~l Recoveryr Act.
SECTION 1. Each member of the Industry shall within ten days
after the effective date of the Code fie with the Secretary as many
copies of its minimum price schedule for all its crowns including
discounts, allowances, terms, and all conditions of sale as the Secre-
taryv shall require, and from and after the expiration of such ten days
such member shall at all times maintain on file with the Secretary
such a minimum price schedule for all its crowns and shall not sell
below and shall not make any change in such minimum price schedule
except as herein provided.
SEC. 2. The date of filing shall be t~he effective date of the first
price schedule. Any member of" the Industry desiring to change
such minimum price schedule shall file a revised minimum price
schedule with the S~ecretary which shall become effective not less
than ten days after and exclusive of t~he date of filing thereof (Sundays

and holidays excluded). All minimum price schedules so filed shall
be open to inspection at all times by all interested parties.
SEC. 3. U~pon the filing of a revised minimum price schedule,
copies thereof shall immediately be sent to all members of the Indus-
try, who thereupon may file, if they so desire, revisions of their
minimum price schedule which shall become effective upon the date
when t~he revised minimum price schedule first filed shall go into
SEC. 4. NODG Of the prices shown in any minimum price schedule
shall be changed except by t~he filing of a new minimum price schedule
as provided in Section 2.
SEc. 5. Each member of the Industry may execute an agreement
in form prescribed by t~he Code Authority with each Sales Agent,
Jobber, Broke~r, or Distributor representing or reselling crow~ns of such
member, requiring each of them to file with the Secretary minimum
price schedules at which such sales agent, jobber, broker, or distribu-
tor shall sell crowns. Such agreement shall provide that any sales
agent, jobber, broker, or distributor desiring to change such minimum
price schedule shall file a revised minimum price schedule with the
Secretary which shall become effective not less than ten days after
and exclusive of the date of fiing thereof (Sundays and holidays
excluded). Alll minimum price schedules so filed shall. be open to
inspection at all times. Neither the forms of agreement prescribed
or any modification thereof shall become effective until approved by
the Administ~rator.

Except a.s mayF be subsequently set forth in a specific or supple-
mentary export code for the Industry, the provisions of this Code now
included or hereafter to be included in Article V shall not apply to
direct export sales or to sales in course of export (i.e., sales of crowns
as such destined ultimately for export). The term "export" shall
include, in addition to shipments to foreign countries, shipments to
such United States possessions as may be defined by the Code
Au thori ty.
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited:
SECTION 1. The secret payment or allowance of rebates, refunds,
commissions, credits, or unearned discounts, whether in the form of
money or otherwise, or the secret. extension to certain purchasers of
special services or privileges not extended to all purchasers on like
terms and conditions.

SECTION 1. No provision of this Code shall be construed, interpreted
or applied in such a manner as to-
(a) Promote monopolies or monopolistic practices.
(b) Promote or encourage unfair competition.
(c) Eliminate or oppress small enterprises.
(d) Discriminante against small enterprises.

SEc. 2. WPithin each St~ate this Code shall not supersede any laws
of such St~ate imposing more stringent requirements regulating t~he
age of employees, wages, hours of work, or healt.h, w-elfare or general
working conditions, than are imposed by this Code.
SEc. 3. Any member of the Industry shall be eligible t~o member-
ship in the Association and there shall be no inequitable restrictions
imposed upon such membership.
SEc. 4. This Code and all the provisions thereof are extpressly made
subject to the right of the President, in accordance wit~h the provisions
of subsection (b) of Section 10 of the National Industrial Recovery
Act, from time to time to cancel or modify any order, approval,
license, rule or regulation issued under Title I: of said Act and specifi-
cally, but without limitation, to the right of the President to cancel
or modify his approval of this Code or any conditions imposed by
him upon his approval thereof.
SEC. 5. Prior to December 31, 1933, no member of the Industry
shall increase the sale price of his product sold after the effective
date hereof over the price on July 1, 1933, by more than is malde
necessary by actual mereases mn manufacturing, distribution, and
material cost, or by taxes or other costs resulting from action takren
pursuant to the Agricultural Adjustment Act and/or this Code since
Juy 1933, and in setting such price increases, full weight shall be
given to probable increases in sales volume. In case a member of
the Industry on July 1, 14933, was selling his product at less than
actual cost, he may take his cost price on that date as the base for
such increase in selling price as is permitted by this Section.

Violation by any employer of any provision of this Code or of any
rule or regulation issued thereunder, or any deliberately false state-
ment or report made to the President or the Code Authority, after
decision thereon by the Administrator pursuant to Article IV of this
Code, shall constitute an unfair method of competition and the
offender shall be subject to the penalties provided by the National
Industrial Recovery Act.


The Code shall become effective eleven (11) days after it is approved
by the President.

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