UNIVERSITY OF FLO RIDA 

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3 1262 08482 9299 _ _ _ _ _ _ ___ _ Jldment No. 1 Registry No. 1022- 1-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

CAP AND CLOSURE 

INDUSTRY 

AS APPROVED ON DECEMBER 20, 1934 

I 

L~ 0 = 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D. C. - • • • • • • • • Price 5 cents 

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This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. Buffalo, N. Y. : CI1amber of Commerce Building. Chari ston, S. C. : Chamber of Commerce Building. 

Chicago, Ill. : Suite 1706, 201 North Wells Street. 

Cievelancl, Ohio: Chamber o-f Commerce. Dallas, Tex. : Chamber of Commerce Building. 

D2troit, Mich.: 801 First National Bank Building. Hou ton, Tex. : Chamber of Commerce Building. Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. Memphis, Tenn. : 229 Federal Building. Minneapolis, Minn. : 213 F0deral Building. 

New Orleans, La. : Room 225-A, Customhouse. New York, N. Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelpl1ia, Pa. : 422 Commercial Trust Building. Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash. : 809 Federal Office Building. 
Approved Code No. 58-Amendment No. 1 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

CAP AND CLOSURE INDUSTRY 

As Approved on Decemb2r 20, 1934 

ORDER 

ArrROYING AMENDMENT oF CoDE oF F AIR CoMPETITION FOR THE CAP 

AND CLOSURE INDUSTRY 

An application having been duly made pur uant to and in full 

compliance with the pro vi ions of Title I of the National Industrial 

Recovery Ac,S approved June 16, 1933, f or approval of an amendment to the liode of Fair Competition for the Cap and Clo ure Industry, and a hearing having been duly held thereon and the 

annexed report on said amendment, containing findings with re pect 

thereto, having been made and directed to the President : 

NOW, THEREFORE, on behalf of the President of the United 

State , the National Indu trial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Exe utive Order No. 6859, dated September 27, 1934, and otherwi e, 

doe hereby incorporate by reference said annex·ed report and does 

find that said amendment and the Cod as constituted after being 

amended comply in all re pects with the pertinent provisions and 

will promote the policy and purposes of aid Title of said Act, and 

does hereby order that aid amendment be and it is hereby approved, 

and that the previous approval of said Code is hereby amended to 

include an approval of aid Code in its entirety as amended. 

NATIONAL IND STRIAL RECOVERY BoARD, 

By vV. A. HARRIMAN, Arffrninistrative Officer. 

Approval recommended: 

r-ILD URNE JOHN TON, 

Acting h~si n Adrninistrator. 

W'" ASI!I~GTON ' D. c., 

December O, 1934. 

(1) 

104-40°----13 G 123----34 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: This is a report on the amendments to the Code of Fair Competition for the Cap and Closure Industry, to incorporate certain 

rules for Fair Trade Practices as affecting the ~1oulded Cap Division 

thereof. These amendments were proposed in accordance with Article IV of the Code as approved on October 20, 1933, a public hearing 

on the proposed amendments having been held on December 27~ 1933. 

FINDINGS 

The Deputy Administrator in his final report on said amendments 

to said Code having found as herein set forth and on the basis of all 

the proceedings in this matter: 

We find that : 

(a) The amendments to said Code and the Code as amended are 

well designed to promote the policies and purposes of Title I of 

the National Industrial Recovery Act, including the removal of 

ob tructions to the free flow of interstate and foreign commerce which 

tend to diminish the amount thereof, and 'vill provide for the general 

welfare by promoting the organization of industry for the purpose 

of cooperative action among trade groups, by inducing and maintaining united action of labor and management under adequate govern- mental sanction and supervision, by eliminating unfair competitive 

practices, by promoting the fullest possible utilization of the present 

productive capacity of industries, by avoiding undue restriction of 

production (except as m_ay be temporarily required), by increasing 

the con umption of indu trial an l agricultural products through 

increasing purchasing power, by reducing and relieving unemployment, by imr roving standards of labor, and by otherwi e rehabilitating indt1stry. 

(b) Th Code as amended complies in all re pects with the pertinent provisions of said Title of said Act, includin§a without limitation 

Subsection (a) of Section 3, Sub ection (a) of ection 7, and Subsection (b) of Section 10 thereof. 

(c) The Code empowers the Code Authority to present the afore- said amendments on behalf of each or all of the Divisions of the 

Indu try. 

(d) The Code and the Code as amended are not designed to and 

will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 

to and will not eliminate or oppress small enterprises and will not 

operate to eli criminate against them. 

(2) 
3 

(f) Those engaaed in other steps of the conomic proC€ "~ have 

not been deprived of the right to be heard prior to the approval of 

said amendment . F or these r asons, therefore, these amendments have been appro ed. 

For the National I ndustrial Recovery Board : 

D ECEMBER 20, 1934. 

w. A. H ARRIMAN' 

Administrative 0 fficer. 
AMENDMENT TO CODE OF FAIR COMPETITION FOR 

TI-IE CAP AND CLOSURE INDUSTRY 

ARTICLE V 

Amend Section 2 to read as follows : 

"Tha rules for Fair Trade Practice for the Moulded Cap Division 

a· et forth in Schedule "B" attached hereto are specifically made a 

part of this code." 

Renumber pre ent Section 2 of Article V as Section 3. 

Add the following as 

SCHEDULE " B " 

RULE' FOR FAIR TRADE PRACTICE FOR THE MOULDED CAP DIVISION 

SECTION L-Each member of the Division shall file with a confidential and disinterested agent of the Code Authority or, if none, 

then with such an agent designated by theN ational Industrial Recovery Board, identified lists showing all of his prices, discounts, rebates, 

allowance , and all other terms or conditions of sale, hereinafter in 

this article referred to as "price terms", which lists shall completely 

and accurately conform to and represent the individual pricing practice of said member. Such lists shall contain the price terms for 

all such standard products in the Division as are sold or o:fiered for 

ale by aid member and for such non-standard products of said member as shall be designated by the Code Authority. Said price terms 

shall in the first instance be filed within ten days after the date of 

appro\al of thi provision. Price terms and revi ed price term hall 

becoma effective immediately upon receipt thereof by said agent. 

Immediately upon receipt thereof, said agent shall by telegraph or 

other equally prompt means notify said member of the time of such 

receipt. Such lists and revisions, together with the effective time 

ther of, hall upon receipt be immediately and simultaneously distributed to all members of the Division and to all of their customers 

who haYe applied therefor and have offered to defray the cost actually 

incurred by the Code Authority in the preparation and distribution 

thereof and be available for in pection by any of their customers at 

the office of such agent. Said lists or revisions or any part thereof 

shall not be made available to any person until released to all member of the Divi ion and their customer , as afor said; provided, that 

price filed in the first instance shall not be relea eel until the expiration of the afar aid ten day period after approYal of thi provi ion. 

The Cod Authority shall maintain a perman nt file of all price 

term filed as herein provided, and ·hall not le troy any part of such 

recor ls ex ept upon writt n consent of the National In lu trial R"-

covery B ard. Upon reque t the Cole uthority hall furn1sh to 

the National Industrial RecoY"ry Board or any luly designated 

(4) 
5 

agent of the National Indu trial RecoYcry Board cop· es of any uch 

lists or re ision of price term . Section 2. When any member of the Division ha filed any revision su ·h memb r hall not file a high r price within forty-eight 

hour. 

Section 3. No member of the Division shall sell or offer to sell 

any products of the Division for which price terms have been filed 

pur uant to the provision of this article, except in accordance with 

such price terms. 

Section 4. No member of the Division hall enter into any agreement, understanding, combination or conspiracy to fix or maintain 

price terms nor cause or attempt to cause any member of the Division to change his price term by the use of intimidation, coercion, 

or any other influence inconsistent with the maintenance of the free 

and open market which it is the purpose of this article to create. 

Section 5. Nothing in this Schedule contained shall be so construed as to prevent the performance by any member of any valid 

bona fide contract made and entered into before the effective date 

of this provision; provided, however, that such contract has not been 

made and entered into before the effective date hereof in contemplation thereof and with the intent to defeat the purpose thereof. 

Section 6. For all purposes of the Code the following-described 

act shall constitute unfair practices: 

A. No member of the Division shall brand or mark or pack any 

goods in any manner which tends to deceive or mislead purchasers 

with respect to the brand, oTade, quality, quantity, origin, size, ·ubstance, character, nature, fini h, material content or preparation of 

such goods. 

B. No member of the Division shall secretly offer or make any payment or allowance of a rebate, refund, commission, credit, unearned 

discount or excess allowance, whether in the form of money or otherwise, nor shall a member of the Division secretly offer or extend to 

any customer any special service or privilege not extended to all 

cu tomer of the same cla s, for the purpo e of influencing a ale. 

C. No member of the indu try shall give, permit to be given or 

directly offer to give anything of value for the purpose of influencing 

or rewarding the action of any employee, agent, or repre entative of 

another in relation to the business of the employer of such employee, 

the principal of such ag nt or the repre ented party, without the 

knowledge of uch employer, principal or party. Commercial bribery provi ions shall not be con trued to prohibit free and gen ral 

di tribution of articles commonly used for advertising exc pt o far 

a ncb article are actually u ed for commercial bribery as hereinabove defined. 

D. No member of the Divi ion hall permit sales agents or r preentatives to . plit commi ion with purchaser . 

E. No membor f the Di' i i n hall make fal e invoices. 

Approvccl C cl No. 5 Amendment No. 1. 

Reai try No. 1022-1- 03. 

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