Code of fair competition for the cap and closure industry as approved on October 20, 1933, by President Roosevelt


Material Information

Code of fair competition for the cap and closure industry as approved on October 20, 1933, by President Roosevelt
Physical Description:
v., 9 p. : ; 23 cm.
United States -- National Recovery Administration
Supt. of Documents
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Caps and closures industry -- Law and legislation -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
"1232-B ; Registry No.1022-1-03"

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004851205
oclc - 63655038
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Full Text

Registry No. 1022--1-03

U.S D ::"TOR Y

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

the Superintendent of Documents, Washington, D.C. - Price 8 cent


S08486 7539


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'This publiention is for sale by the Superintendent of Documents, Government
Printing Office, Wasuhington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.


Atlanta, Ga.: 504 Post Office Building.
Birmirhngha, Ala.: 257 Fedlerall Building.
Boston, Manss. : 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Cha~mber of Commerce Building.
Chlicago, Ill.: Suite 17068, 20)1 North Wells Street.
Clevvelandt, Ohio: C~hamber of C'ommerct
Dallas, Tex.: Chamber of Commlerce Building.
Detriiit. Aieb.:: 2213 First Nationlal Bank Building.
Houston, Texs.: Chamber of Commerce Building.
In~dianapolis, Ind.: Chamber of Commerc3 Building.
Jacklsonville\, Fla.: C'hamnber of Commerce Buildingo.
Kansa;:s City, M~o.: 1028 Baltimore Av~enue,
Los An1Geleis, Calif.: 1163 South Broadway3.
LouiSville,, KyJ.: Roomn 41(G, 421 W~est M~ark-et Street.
Mlemphis, Tenn.: 26i6 Soiuth Water Street.
M~inneap~olis, M~inn.: 213 Fedleral Building.
N'ew\ Orleansb Ln. : Room 223~-A, Customb~ouse.
New York, NT.Y.: 7343 Customhouse.
N'orfolk, Va:.: 406 East Plume Street.
Philadlelphia. Pa.: Room 812, 20) South Fifteenth Street.
Pittsburgh, PEa.: Chanmber cif Commerce Building.
Polrtlandl, Or~eg.: 215 Niew Post Offce Building.
st. Louis, Mlo.: 506 O~live Str~eet.
San Francisco, Calif.: 310 C~ustombouse.
S ealttle~, Wash.: 1406 Vance B>uilding.



An application having been duly madle, pursuant to andl in full
compliance w~ith t.he provisions of Title I of the National Industrial
Recovery Act, approved June 16, 19:33, for my approval of a Code of
Fair Competition for the Cap and Clo~sure Industry, and hearings
hr ving been held thereon and the Administrator having rendelred his
report containing an analysis of ethe said Code of Fiair Competition,
together with his recommendations and findlingrs withn respect thereto,
and the Aldmninistraator having found that the said Code of ]Fair
Competition complies in all1 respects with th~e pertinent provisions
of Title I of said Act and that the requnirements of clauses (1) and
(2) of subsection (a) of Section 3 of the said Act have been met:
dent of the Uniited States, pursuant to the authority vested in me
by Title I o-f thle National Industrial Recovery Act;, approved June
16, 1933, and otherwise, do approve the report and recommendations
annd adopt the findings of the Adlministrator and do order that the
said Code of Fair Completition be, and it is hereby, approved.
October 3, 1933.
Approval Recommended :
Honc S. JoHNSON.
17131"---188-24-33 (II1)

OCTOBER li, 1933.
The Wh'ite House.
SmH: A- proposredl Code of Fair C~ompetition for the Cap and
Closure Indurstry was submiitted to t~he Administrator on August 8,
1933, by the Cap and Closure Division of the Glass Container As-
socint~ioni of Amlerica, representing 835% of the known members of
the Industry. The hearing was conducted in Washingaton on Sep-
temiber 15, 1933, and the Code was revised during the recess of this
hearing and is submit~tedl in it~s present forml for approval. Every
person w~ho requested an appearance was properly heard in accord-
ance with stat.utory and regulatory requirements. Only one person,
the President of the Amalgamated Lithographers of America, re-
quested recognition and entered an objection to the labor provisions
of the Code as submitted.
The Industry w~hichi is relatively small and closely interrelated
with~ the Glass Cont~ainers Industry, experienced, during the past
four years, a drop of only 10% in unit volume of sales. This was
coincident, however, with a drop of 18% in the number of employees.
It is estimated that the insertion of the labor provisions of this Code,
which are essentially the same as those of the Glass Container In-
dustry~, will necessitate an 115~ increase in employment and that
350,000 dollars will be added to the yearly payroll.
RisOms or C~ODE
Article I states the purpose of t~he Code.
ASrticle II accurately dlefnes specific references made in the Code.
Article III s~ets forth the manidatory labor p~rovisions, minimum
age requirements. mnaximum hours? and minimum wmage rates. The
maxmnunni hours are limited to 40 per week for factory, oftice, and
branch employees. Factory hours are permitted to be flexible over
a six-months' periodl, but ar~e not to be mn excess of 48 hours for any
one weeki. The minimum w~age rate, varying from $15.00 to $14.00
for accounting, clerical, office, service, and sales emnploye~es (except-
ing outside salesmnen), is based on population differentials. For fac-
tory, mechanical, and artisan employees the minimum is 404 per
Apprentices and learners without previous experience may not
constitute more than 5%c of the total number of employees and their
wages shall not be less than 80%c of the specified minimums. The
period of apprenticeshiip and learning is limited to three months.
3Higher paidl employees (up to $35.00 per week) are protected by
an equ~itable read-justment clause.
Article IV' establishes a Cod'e Authority of five members elected
by the Industry with additional (not exceeding three) re~presenta-
tives to be alppointedl by the Administrator and provides machinery
for obtaining statistics.

Article V sets fourth thle Fair Tradle 1Practices for the Indlustry,
including an open-price structure with. no limiitation p~laced upon
the prices any firmn mna quote.
Article VI contalins thle mandatory provlsionl respectingr amend-
ments and provides for the sublmission of proposed amendPments by
members of the Inidustry.
Article VII sets forth the action followedd pIursuant to a viola-
tion of the code.
Article VIII states the effective date.

SThe Adlministrator finds: A. This Code complies in all respects
with the per~tinntlt phrasers of Title I: of the _Act, including wFiithout
limitaltion, subsectionr A of Section 7, and subsection B of Section 10
i. thereof; B. Th7e Cap and C'losure Div-ision of the Glass Container
Association is truly representativ-e of the Cap and Closure Indus-
try, and the byvlaws of this Associa~tion provide no inequitable re-
strictions to membership; C. The code. is not designed to promote
monopolies or to eliminate or opplress small ente~rprilses and will not
operate to discriminate against them, anld will tend to effectuate
i the policy of Title I of the Naltional Industrial Recovery ~Act.
The Indust~rial and Labor Advisory Boards have approved the
Code as now presented. The Consumers _Advisory Board approves
the Code with one additional recommendation. The Legal Depart-
ment has checked thle Code as to form and has a-pproved it.
It is recommended, therefore, that this Code be approved.
Huncr S. JoI3NSON,

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To effectuate the policy and purposes of the National Industrial
Recovery Act, the followiner provisions are established as a Code of
Fair Competition for the C'ap and Closur~e Industry, and shall be
binding upon every member thereof.

SECTION 1. The term "L Industry means and includes the business
of produl~cing in the U~nited SEtates andr shelling caps or closures and
liners therefore of the types and kinds referred to in connection with
the followingr Divisions of the Industry which are hereby recog-
nized and diefned:
A. T'he Tinplate, Alumiinum and Zine Screw and Lug Cap "
Division consists of members of the Inrdustry producing and selhumg
caps and closures madle of tinpllate, aluminum, or zinc, designed for
use in connection with G.Cr.A. (Glass Container Association) Num-
bers 300, 100, 125, 150, 17,5, 49.5, 400, 410, 415, 450, 1300, 2900, 1200,
2200, 1600, and 1900U Glass Finishes, and all other screw or lugS types
of caps or closures made of tinplate, alumin-um~, or zine for any
other glass finishes than those herein specified, except cover caps
for catsup bottles and screws caps designed as a unit or in com~bina-
tion with bands to serve as nontamperable seals and caps for use in
home canning or preserving.
B. The "A~ll Other Trinplalte, Aluminum, and Zine Cap Division
consists of members of the Indlustry ptrlIroducin and selling all types
of caps and closures for glass containers made of tinplatet, aluminum,
or zinc other than those specified in Section 1, AP, except Crown
casand milk-bottle caps.
C.The "L Molded Cup Division consists of members of the In-
dusntry producling or selling caps or closures of every type and kind of
moldinga compounds.
D. The Cap and Closure Liner Dlivision consists of members
of the Industry processing and selling liner pasteboard and paper
line maeril fo us inmeta an modedcaps as defined in ec
tion 1, Paragraph A, B, and C.
Other divisions may be formed from time to time by interested
g. Authority and of the Administ~rator. W'hen so approved the defini-
tron of the division shall be added to thle list of divisions recognized
by this section.
Scc.2. The terms President ", "A~ct ", a~~dnd "Admltr;inistrtor
Sas used herein shall mean respectively, thePrsdnofteUid

States, the National Industrial Recovery Act, and the Administrator
of said Act.
SEC. 3. The term "emplOyee ?S asUSed herein includes anlyonee en-
gaged in the Industr~y in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of
such compensation.
SEC. 4. Thle t~ermn "L empnloyer as used herein includes anyone by
wFhom1 any such employee is compensated or employed.
SEc. 5. The ter~m "' plant means a plant engaged in thle Industry
as herein defined.
SEc. 6. Miajority vote." Each member of the Industry shall have
one vote. At any meeting of members of the Industry, members
thereof having the right t~o cast at least 51 percent of all the votes
and whose sales volumne for the pr~ecedinga calendar year equals at
least 51 percent of the total sales volume shall constitute a quorum.
Sixty percent of the members present at each qualified meeting shall
constitute a majority vote; provided, however, that the total sales
volume of the precedling calendar year of such number of members
shall also equal at least 60) percent of the total sales volume of all
members present at such meeting.
SEC. 7. The term Code Authority means the Administrative
b~odyl provided for in Article IVT of thlis Code.
SEC. 8. Thie ter~m "' The Association means the Glass Container
Association of America.


SECTION 1. Employees shall have t~he right. to organize and bargain
collectiv-ely through representatives of their own choosing and shall
be frece fr~om thle 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 bar~gaining or other miutuial aid~ or protection.
No employee andl no one seeking employment shall be required
as a condition of emlployment to join any company umion or to reframn
from joining, orgamizmg, or assistmng a labor organization of his
own choosing.
Employers shall comply with the ma xim~um hours of labor, min-
imum rates of pay, and other conditions of employment approved or
prescribed by the President.
SEC. 2. NO member of the Industry shall employ any person under
thle age of sixteen (16) years, and no person under 18 years of age
shall be employed or allowed to work on or in connection with any
hazardous ma n fact uri ng processes.
SEC. 3. The maximum number of working hours for all employees
in the Industry except as hereinafter provided shall not be in excess
of 40 hours per week averaged over a six months' period, and not in
excess of forty-eight (48) hours in any one week. For the purpose
of this section the balance of the year 1933, from the effective date of
this Code to December 31, 1933, inclusive, shall be considered the
first period. Subsequent periods shall begin on January 1st and
July 1st, to end on June 30th and December 31st, respectively.

j~The maximum numlber of w~orking hours for office. or branch em-
pees in the Indust~ry shall not. be in excess of an averrage of fort.y
i)hours per week over any one month's period, and not in excess
forty-eigaht (48) hours in any one week. Providedtl however, thiat
provisions of this section shall not apply to exrecutiv~es and super-
ors, outside salesmuen, technical and laboratory stuiffs, wantchmen,
ndthose emnployved in emelrgency~ manintenancel arnd3 e~me1rency repair

.liEmployers shall not reclassify employees or duties of occupations
~~erformed by employees so as to defeat. the purposes of' the Act.
.~SEC. 4. No employee shall be p~ermlittedl to work for two or more
ploy~ers for a longer period- in any3 week than is specified herein
ra single employer.
SEc. 5. No emllDoyer shall pay any accounting, clerical, office, serv-
eor sales employece (excep-t outside salesmen) less thann at thec rate
ii~f $15.00 per week in any~ city of 500,000 p~opulation, or in the
immediate trade area of such 'city; nor less than ait the rate of $14.50
:er week in any city of between 250,000 and 500,000 population, or in
h,~e immediate trade area of suIch city: nor01 less than at the rate~ of
'14.00 per week; in any town or city of 950,000 population or less.
SEC. 6. No employer shall pay any factory or mechanical worker
o:~:r artisan less than fort.y (40&) cents per hour unless the! hourly
Ili~ate for thle same class of work on July 15, 1929, was less than forty
.(404) cents per hour, in which latter case~ not to pa1y less than the
h;ourly rate on July 15, 1929, and in no event less than thirty (30gS)
Icents per hour. It is agreed that this paragraph establishes a guar-
anteed minimum rate of pay regardless of whether thej employee is
compensated on the basis of a time rate or on, a piece work perform-
Female employees doing the same work as that performed by male
employees shall receive a rat~e of compensation equal to that of such
Male employees.
Apprentices and learners without pr~evious experience in the Indus-
Stry shall be ercep~ted fr~om the provisions of thip Section; provided,
h..owever, that t~he total number of such apprentices andl learners shall
anot constitute mor~e than five (5%~;) percent of the total number of
employeeses subject to the provisions: of this Code in any one plant;
;iand provided further, that the wages paid to such apprentices anc
I'learners shall not be less than eightyr (80 0o) percent of t.he minimum
::rates of pay specified in this Code and provided further, the pe-
iriod of apprenticeship or learning sh~all not exgceed onle month.
; SEC. Y. The exiSting amOruntS by whichl wages in the high~er-paid
classes of employees, up to employees receiving thirtyg-five ($335.00)
dollars per we~ek, exceed wages in the lowecr-paid classes of employees,
shall be maintained; provided, however, that w~her~e the foregoing
p:'rovision results in rates tha1t are inequitable as between plants, fPor
~h e same work, revision or wnsge rates for higher-paid classes shall
be adjusted in a reasonable manner, subject. to the supervision of the
.Code Authority.
SEc. 8. Any employee excepted in Article III, Section 3 of this
oe other than executives and supervisors who receive more thian
thry-five dollars ($35) per week? watchmen, and outside salesmen,
17131" --188-24 3-3 2

shall be paid overtime at the rate of time and a half for all hours in
excess of 40 hours per week averaged over a six months' period.
SEc. 9. Each employer shall post in a conspicuous place full
copies of the labor provisions of this Code. (Article III and Article
VI, 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 and upon request of the Administra-
tor such additional nonvloting representatives of the Administrator,
not to exceed three, to be appointed by him shall be added to such
Code Authority. All persons engaged in the Industry as herein
d-efinedl shall be entitled to participate in the election of such mem-
bers of the Code AQut~hority. Such election shall be boy a majority as
defined in Section 6 of Article II. The method of selection shall be
subject to review by the Administrator.
Each trade or industrial association directly or indirectly parti-
cipating in the selection or activities of the Code Authorityshall :sb
(1) Impose no inequitable restrictions on membership, and ()sb
mit to the Admninistrator true copies of its articles of association,
bylaws, regulations, and any am~endments when made thereto, to-
gether with such other information as 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-
sentative of the trade~lindustry and in other respects comply with the
provisions of the Act, the Administrator miay provide such hearings
as he may deem proper; and thereafter if he shall find that the Code
Authority is not truly representativee 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. Each division shall have authority to prepare and from
time to time recommends revisions of its own schedule of Trade Prac-
tices by majority vote of such division. Recommendations as to
schedules or revisions adopted by any division shall be submitted by
such division to the Code Authority. If the recommendations so
submitted relate solely to the interests of the division, the Code Au-
thority shall approve such action forthwith, subject only to review
by the Administrator. If the recommendations so submitted affect
other divisions of the Industry, then the Code Authority shall take
such action as it deems necessary; all to the end that each division
shall be independent and self-governing on all matters relating ex-
clusivelyv to such division. Any action taken pursuant to this Section
shall be subject to approval by the Ad~ministrator after such notice
and hearing as he may prescribe.
SEC. 3. In addition to the powers herein specifically conferred upon
the Code Authority, it shall have the following powers and duties to
the extent permitted by the Act, subject to the right of the Adminis-
trator, on review, to disapprove or modify any action taken.

(a) T~he Code Authority shall be chaerePd with thIe supervision,
administration and enforcement of this ioe and. may issue such
rules and regaulations as masy be necessary to effectuate the purposes
of this Codle. The Code Authority shall ht~ave 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 the National Industrial Recovery AL~ct is being
effectuated in thle Industry as her~ein defined, the Code Authority
shall make such reports as the Admllinist~rator may require, and each
employer shall make such sworn or unsworn reports to the Code
Authority periodicallly or as often as it may direct on wages, hours
of labor, conditions of employment, numnber of employees, produe-
tion, shipmients, sales, stocks, prices, and other mlat~ters pertinent to
the purposes of this ~Code as thle Code Authority many require, and
each employer subject. to the jurisdiction of this Code and accepin
the benefits of the activities of the Code AuthorityI hereundershl
either become a member of the Association or payg to the Code ALu-
thority his pr~oportioinate share of the amounts necessary to defray
the cost of the assemnbly, analysis, and publication of such reports and
data, and of the maintenance of the said Code ALSuthority and its ae.
tivities. Said proportionate share shanll be based upon value of net
In addition to information required to be submitted to t~he Code
Authority, there shall be furnished to government agencies such sta-
tistical information as the Admlinistrator may deem, necessary for
the purposes recitedl in Secution 3 (a) of the National Industrial
Recovery Act.
(c) Any and aill information furnished to the Code Authority
shall be deemed confid~entiall and shall not. be divulged to any member
except in summary, but shall be available to the Admninistratorr upon
(d) The Code Authority may designate the Glass Container As-
sociation or any other appropriate agency to assist it in carrying
out the powers and duties conferrIedl upon it by this Code, provided
that the Code Authority shall not be r~elieved of responsibility and
that when such Association acts in such capacity 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 it~s powers and duties, as it shall deemi necessary or
proper in ordlerl to effectuate the provisions and purposes of this
(f) The Code Aut.hority shall receive, and if it shall approve, shall
present for the approval of the Administrator, any proposals for
supplemnentary provisions or amnendmnents of this Code or additional
Codes, applicable to the Industry defined hereini or to any part
thereof, with respect to wages, hours, trade practices, or related
matters or conditions in the Industry.
SEc. 4. (a) Any interested party shall have thle right of complaint
to t~he Code Author~ity and of a prompt hearing and decision thereon
in respect to any decision, rule, regulation, or other course of action

of such Code Authority. Such complaint must be filed in writing :1
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 miay be appealed by any
interested party to the Administrator.
(b) Any interested party shall have the right of appeal to the
Administrator, under such rules and regulations as he may pre-
scribe, in respect to any decision, rule, regulation, or other course
of action, issued or taken by the Code Authority. The Adminis-
trator m~ay cancel or modify any such action of the Code Authority.

SECTION 1. TChe rules of fair trade practice for the Tinplate,
'Ahuninum and Zine Screw, and Lug Clap Division and the Cap and
Closure Liner Division of the Clap and Closure Industry as set
forth in Schedule A attached hiereto, are specifically made a part of
this Code.
SEc. 2. Where the costs to a member of thle Industry of executing
contracts entered into prior to approv-al of this Code by the Presi-
dent are increased by the application of the provisions o~f this Code,
it is equitable and promlot~ive of the purposes of the National Indus-
trial Recovery Act that appropriate adjustments of such contracts
to reflect suchn increased~ costs be determined by arbitral proceedings
or othlerwise. The Codle Author~ity shall assist in effecting such

SECTION 1. Nio provision of thiis Code shall be construed, inter-
preted, 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)Discriminate against small enterprises.
SEC. 2. T~ithinn each State this Code shall not supersede any laws
of such State imposing more stringent requirements on employer
regulating the age of emp~loyees, wages, hours of worrk, or health,
fieor general working conditions than under this Code.
Sc. 3. Prior to Decemlber 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 made
necessary by actual increases in manufacturing, distribution and ma-
terial costs, or by taxes or other costs resulting from action taken
pursuant to the. Agricultural Adjustment Act and,'or this code since
July 1, 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, 1933, was selling his product at less than
actual cost, he may7 take his cost price on that date as the base
for such increase in selling price as is permiitted by this section.
SEc. 4. Any member of the Industry shall be eligible to member-
ship in the Alssociation and there shall be no inequitable restrictions
imposed upon such membership.

SEC. 5. The President may from time to time cancel or modify any.
order approval, license, rules, or regulations issued under Title I
of the National Industrial Recovery Act, and specifically, without
limitation, may cancel or modify his approvnl off this: Code or a~ny
conditions imposed by him upon his app~roval therleof.

Violation by any person of any provision of this Code or of any
rule or regulation issued thereunnder or any false statement or report
made to the President or the Code Author~ity shall be constituted an
unfair methoed of competition and the offender shall be subject to
the penalties provided by th~e National Industrial Recovery Act.

This Code sha~ll become effective elev-en (11) days after it is ap-
proved by the President.



It is agreed by the members of each of the above-named Divisions in sub-
scribing to this Schedule A that it becomes necessary to conduct the Divisions
in an orderly way and to maintain fair competitive conditions in order that
the provisions and intent of the National Recovery Act may be carried out.
The members of each Division therefore agree that:
SECTION 1. No member of the Divisions shall make any sale at a price or
terms more favorable to the purchaser thereof than the price, terms, or
conditions established by such member in accordance with the provisions of
this Schedule A which are in effect at the time of such sale.
SEC. 2. Each member of the Divisions shall, within ten days after the
effective date of the Code, file wi~thI the Code Authority as many copies of a
list showing the complete prices for all his products in the Division as the
Code Authority shall require, and from and after the expiiration of such ten
days such member shall at all times maintain on file withl the Code Authority
a list showing complete prices for all his products in the Divisions and shall
not make any change lu such prices except as provided in this Schedule A.
Each such list shall state the date upon which it shall become effective,
which date shall be not less than ten days after the date of filing sufficient
copies of such list with the Codte Authority so thaft copies may be sent to
each member of the Div-ision; provided, however, that the first list of prices
filed b~y anly member of the Division as above provided shall tak~e effect on the
date of filingr thereof.
T'he Code Authority shall immedliatelyv send copies of the first list so filed
to all members oif thle Divisio~n and if any member shall file a revised list,
copies thereof shall immediately be sent to all members of the Division, who
thereupon may file if thiey so desire, rev'isionus of their price lists which shall
become effective upon thle date when the revised price list first filed shall go into
These! lists shall be open for inspection to all interested parties.
Wo. 3. None of the p~rice~s shown iri any list shall be changed except by the
filing of a new list as provided in Sectio~n 2.
SEC. 4. Recognizing the necessity for uniform practices in regard to dis-
counts, credit terms, freight allowa~nces, and all other terms of sale, the
members of thle Division maly by a majority v'ote of the members of the Divi-
siojn from timie to: time dletermine on suchi uniform practices and file them with
the Codle AuthlorityF. After app~roval by the Administrator, any violation of such
uniform practices shall be an unfair trade practice.
SEc. 5. Nothing in this Schedulae contained shall be so construed as to pre-
rent the ~Prformlance by any member of any valid bona fide contrnet made and
entered inito before the effective date of this Code; provided, however, that
suchl contract has not been made and entered into before the effective date
hereo:f in contemplation thereof andi with the intent to defeat the purpose
SEC. 8. The Sale of discontinued lines or obsolete or imperfect caps is per-
mitted provided they are sold at not more than 50%C~ of the seller's lowest price
as published for the same size or typDe of cap in effect at the time of such
sale, and sueb sales shlall not be a violation of this Schedule.
SEc. 7. FOr all purposes of the Code the following-described acts shall con-
stitute unfair practices:
A. The imitation of the exclusive trade mark or trade name of a competitor.
B. The sale or offer for sale of any product of the Industry with intent to
deceive customers or prospective customers as to the quantity, quality, or speci-
fi:ations of such product.

C. The marking or branding of products of the Inlduistry for the purpose or
with the effect of misleadling or dlec~eivinlg purchaser~s with respect to quantity,
quality, grade, or specifications of the goods purchased.
D. The panyment or allowfance of secret rebates, refunds, credits, or unearned
discounts, whether in the for~m of money or otherwise. or extendling to certain
purchaser~s confidential prices, sptcial services, or' plrivleges not extended to all
purchasers of the same class under like terms and conditions.
E. Com-mew~ial Bribery.--Directly or indlirectly to give or permit to be given,
or offer to give, money or anything of value to agents, employees, or repre-
sentatives of customers or prospective customers, or t.o agents, employees, or
representatives of competitors' customers or pr~ospective customers, without the
kznowledge of their employers or principals, as an inducement to influence their
employers or principals to purchase or contract to purchase from, the makers
of suchi gift or offer, or to influence such employers or principals to re-frainl
from dealingg or contracting to deal with competitors.
F. To permit sales agents or representatives to split commissions wsith pur-
G. Free D~eals a~n&,e Con~tributions.-TheT offering or giving of prizes, pre-
miums, or gifts in connection wTith the sale of products, or as an inducement
Ha. To make false invoices.