Approved Code No. 84-Appendix No. 6
NATIONAL RECOVERY ADMINISTRATION
(Subdivision of the Fabricated Metal Products
Manufacturing and Metal Finishing
and Metal Coating Industry)
AS APPROVED ON FEBRUARY 12, 1935
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Approved Code No. 84-Appendix No. 6
COSMETIC CONTAINER MANUFACTURING
As Approved on February 12, 1935
APPROVING APPENDIX FOR THE COSMETIC CONTAINER 'A .-UFACTURING
A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND
METAL FINISHING AND METAL COATING INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, and in accordance with the
provisions of Section 4 of Article IV of the Code of Fair Competi-
tion for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, approved November 2, 1933,
as amended June 1, 1934, for approval of an Appendix establishing
trade practice provisions for the Cosmetic Container Manufacturing
Subdivision of said Industry, and Notice of Opportunity to be Heard
having been duly publicized, and no objections having been received
thereon; and the annexed report on said Appendix to said Code con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to authority
vested in it by Executive Orders of the President, including Execu-
tive Order No. 6859, dated September 27, 1934, and otherwise; does
hereby incorporate by reference said annexed report and does find
that said Appendix to said Code complies in all respects with the
pertinent provisions and will promote the policy and purposes of
said Title of said Act; and does hereby order that said Appendix
to said Code of Fair Competition be and it is hereby approved;
provided, that Section 8 thereof be and it hereby is stayed for a
period of twenty (20) days from the date hereof, and at the expira-
tion of that time it shall become effective unless good cause to the
contrary is shown to the National Industrial Recovery Board before
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Officer.
Acting Division Administrator.
WASHINGTON, D. C.
February 12, 1935.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on an Appendix to the Code of Fair Compe-
tition for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, approved on November 2,
1933, and as amended on June 1, 1934.
The Cosmetic Container Manufacturing Industry, being truly rep-
resentative of this Subdivision of the Fabricated Metal Products
Manufacturing and Metal Finishing and Metal Coating Industry,
has elected to avail itself of the option of operating under the Code
for the Fabricated Metal Products Manufacturing and Metal Finish-
ing and Metal Coating Industry, with the assistance of additional
fair trade practice provisions.
RESUME OF THE APPENDIX
Paragraph A. Definition, accurately defines the term Cosmetic
Container Mannufact during "
Paragraph B. Governing Body, sets up a governing body consist-
ing of members of the Subdivision and also provides for an Admin-
istration Member. This governing body is to be known as the
Subdivisional Committee for the Cosmetic Container Manufacturing
Paragraph C. Effective Date, prescribes the effective date of the
Section 1 provides that no member shall falsely classify any
product for the purpose of securing lower freight rates.
Section 2 prohibits the sale of or quotations on other products
and/or commodities, as a subterfuge toward disposing of products
of this Industry at less than the invoiced price plus all incidental
Section 3 provides that no member shall secure confidential infor-
mation by false or misleading statement or by bribery or any other
Section 4 makes it a violation for any member of the Industry to
use the term "advertising allowances when applied to any part of
price offer or to denote payment for the purchase of specific promo-
Section 5 provides that no member of the subdivision shall grant
terms on payment of sales more favorable than net cash.
Section 6 makes it a violation for any member of the Industry to
publish or circulate threats of -uits for infringement of patents or
trade marks or any other legal proceedings not in good faith.
Section 7 prohibits the breach of a written contra.-t between a
competitor and his consumer.
Section 8 makes it a violation for any member of the Industry to
grant the right to purchasers to remove tools from the employer's
plant because of the payment by the pui'chai-er of fitting up charges
to cover the cost of such tools and fixtures made especially for an
Section 9 prohibits the return by the purchaser of damaged or
shopworn merchandise without previous return authorization by the
said member of the subdivision.
Section 10 prohibits the making or offering to make contracts under
terms of which the cu-tomer shall have the right to take delivery
of any part or all of the goods after 90 days from date of first de-
livery; (provided, that contracts may be accepted for more extended
Section 11 prohibits the failure to invoke available legal remedies
upon breach of contract by a cu-tomer, for the purpose of securing
competitive advantage over other members of this subdivision.
Section 12 makes it a violation for any member of the Industry
to discriminate in price in favor of purchasers of goods for export
compared with domestic purclias-ers; provided, that nothing shall
prevent discrimination between purchasers that makes only due al-
lowance. for differences in grade, quality, or quantity of the com-
modity sold, or in the cost of selling or transportation.
The Deputy Administrator in his final report to the board on said
Appendix to said Code having found as herein set forth and on the
basis of all the proceedings in this matter:
It has been found that:
(a) Said Appendix to said Code is well design,_-d to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of (ob-tructions to the free flow of interstate
and foreign c(cnilnerce which tend to diminish the amount thereof
and will provide for the general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanctions and super-
vision, by eli ninnting unfair competitive pra;t ices, by promoting the
fullest possible utilization of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of in-
dustrial and agricultural products through increcaing purchasing
power, by reducing and relieving unemployment, by improving
standards of 1:ilor, and by otherwise rehabilitating industry.
(b) Said industry normally employs not. more than 50,000 em-
ploye.-; and is not cl:a-ified by the National Industrial Recovery
Board as a major indizstry.
(c) The Appendix to said Code as approved complies in all re-
spects with the pertinent provisions of said Title of said Act, includ-
ing 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 association truly representative of the
aforesaid Industry; and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Appendix to said Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Appendix to said Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
Appendix to said Code.
For these reasons, therefore, this Appendix of said Code has been
For the National Industrial Recovery Board:
W. A. HARRIMAN,
A dmin.ln nativee Officer.
FEB-UARY 12, 1935.
CODE APPENDIX FOR THE COSMETIC CONTAINER
A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING
AND METAL FINISHING AND METAL COATING INDUSTRY
Pursuant to Section 4 of Article IV of the Code of Fair Competi-
tion for the Fabricated Metal Products Manufacturing and Metal
Finishing and Metal Coating Industry, as amended, (the terms of
which apply to each member of the Cosmetic Container Manufac-
turing Industry Subdivision) the following provisions are estab-
lished as an Appendix to said Code of Fair Competition of the
Fabricated Metal Products Ma.lnufacturing and Metal Finishing and
Metal Coating Industry for the Cosmetic Container Mainufacturing
Subdivision of that Indu- t ry.
A. Defiition.-The term Cosmetic Container Manlfacturing"
is defined to mean the manufacture for sale of unfilled containers
made in whole or in part of metal (other than tin decorated con-
tainers or collapsible tubes), which are sold to the manufacturer of
toilet goods in order to be used for the holding of perfume, cosmetic,
and other toilet preparations.
B. Sv17,l;cL;.,ional Commnittee.-The members of the Subdivision
shall set up a Subdivisional Committee for the Co-ietic Container
Manufariitriing Subdivision, hereafter referred to as the Subdivi-
sional Committee ", con-i-tinig of as many members as may be deter-
mined by and in a manner -ati.factory to the Basic Code Authority
and the National Indii-t ri;l Recovery Board. The National Indus-
trial Recovery Board may appoint a member of the Subdivisional
Committee who shall be given reasonable notice of and may sit at
all meetings of the Subdivisional Committee, but who shall be with-
out vote and shall sor.le without expense to the Subdivision.
C. Effective Date.-This Appendix shall become eflfective ten (10)
days after its approval by the National Industrial Recovery Board.
Any member of the Subdivision who directly or indirectly through
any offi':---r, employee, agenrit. or representative, violates or evades any
of the following trade practice provisions shall be guilty of violation
of this Code.
SFr"I'TI 1. Classifcation.-No member of the Subdivision shall
falsely cli--ify any product of this Subdivision as to nature thereof
for the purpose of -euring lower freight ratf-s.
Sl:.t>N 2. Comrbii,;,, n Sales.-No member of the Subdivision
shall sell or oiler to sell commoditie- other than proliucts of this
Sublivision for the purpose of infleiiiring a sale of products of this
Subdivi-ion at prices below the invoice price plus all incidental cost
of such products. If and when the products of this Subdivision are
sold in combination with products of other industries, the invoice
must clearly show the unit price of all articles listed.
SECTION 3. Espionage of Competitors.-No member of the Subdi-
vision shall secure or attempt to secure confidential information con-
cerning the business of a competitor by false or mistradiiin statement
or representation, by false imper-onnation of one in authority, by
bribery or by any other unfair method.
SECTION 4. Advertising Allowances.-No member of the Subdi-
vision shall use in a -ales agreement the term "advertising allow-
ances" when it is applied to any part of the price off'r or uswd
otherwise than to denote the payment for the purchase of specific
promotion services. No member of the Subdivision shall arrange for
advertising allowances except in agreements entirely separate and
distinct from sales agreements, nor shall any member grant adver-
tising allowances except as payments for specific promotion perform-
ances which are possible, practicable, and capable of being audited.
SECTION 5. Ternms.-No member of the Subdivision shall grant
terms of payment on sales more favorable than net cash, thirty (30)
days, or, if discount is allowed, such discount shall not be in excess of
two (2 -) percent, 10 days proximo, net 30 days. Bills must be dated
the day of shipment.
SECTION 6. Thr"-.ts of Litigation.-No member of the Subdivision
shall publish or circulate threats of suits for infringement. of patents
or trade marks or any other legal proceedings not in good faith, with
the tendency or effect of harassing competitors or intimidating their
SECTION 7. Interference u-;rh Another's Contracts.-No member of
the Subdivision shall induce or attempt to induce the breach of a
written contract between a competitor and his customer or source of
supply, or interfere with or obstruct the performance of contractual
duties or services covered by any such contract.
SECTION 8. Fitting up Charges.-No member of the Subdivision
shall grant the right to purchasers to remove tools from the employer's
plant because of the payment by the purchaser of fitting up charges
to cover the cost of such tools and fixtures made specially for an order.
The terms on fitting up charges shall be net cash. After a period of
two years without a reorder, unless otherwise mutually agreed upon,
the employer shall be at liberty to make any disposition or use of such
tools as he desires. No exception to this Section shall be allowed
except under circilum-t;anies to be defined by the Subdivisional Com-
mittee and approved by the National Industrial Recovery Board.
SECTION 9. Gowis Returned for Repair or R,,oniditioirning.-No
member of the Subdivision shall accept, after performing his part
of the agreement of sale, the return by the purchaser of damaged or
shopworn merchandise without previous return authorization by the
said member of the Subdivision. A charge to cover the cost of re-
conditioning and handling su<,h merchandise shall be made. Nothing
in this Section shall be construed to preclude the return of merchan-
dise when authorized by a member of the Sudivision due to defects
in workmanship or material.
SECTION 10. Contracts or Order for Extended Deliveries.-No
member of the Subdivision shall make or offer to make contracts,
or accept orders, under the terms of which the customers shall have
the right to take delivery of any part or all of the goods after 90
days from the estimated date that the first delivery would be avail-
able for shipment or in accordance with the manufacturer's ability
to produce, or to modify existing contracts or orders to include such
provisions; (provided, however, that contracts or orders may be
accepted for more extended deliveries at the customer's request if
provision is made for adjusting the price of undelivered portions at
the end of the first ninety (90) days above mentioned and at the
end of each three months' period thereafter, so that price during
each three months' period shall be higher or lower, as the case may
be, by an amount equal to the change in labor and/or material costs
entering into the manufacture of the product covered by the con-
tract of the individual member, as of the first day of the period in
comparison with these costs at the date when the contract was made
or the order tiken.)
SECTION 11. Completion and Can cellation of Conmtrae ls.-No mem-
ber of the Subdivision shall fail to invoke available legal remedies
upon breach of contract by a customer, for the purpose of securing
competitive advantage over other members of this Subdivision.
Nothing in this Section shall be construed to preclude reasonable
out-of-court settlements in cases of breach of contract.
SECTION 12. Export Prices.-No member of the Subdivision shall
discriminate in price in favor of purchasers of goods for export as
compared with domestic purchasers; provided, however, that nothing
herein shall prevent discrimination between purchasers that makes
only due allowance for difference in the grade, quality or quantity
of the commodity sold or differences in the cost of selling or trans-
portation. Export trade as used herein is defined to mean export
trade as the term is used in the Export Act of 1918.
Approved Code Nip. 84-Appendix No. 6.
Re'_istry No. 1636-01.
UNIVERSITY OF FLORIDA
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