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3 1262 08486 7539 Registry No. 1022-1-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

CAP AND CLOSURE-INDUSTRY 

AS APPROVED ON OCTOBER 20, 1933 

BY 

PRESIDENT ROOSEVELT 

, • l I 

WE DO OUR ~T 

0-= 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 6 cents 

t/ 
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.: 2:-7 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charle. ton, S.C.: Chamber of Commerce Building. 

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

Clevel::md, Ohio: Chamber of Commerce. Da llas, Tex. : Chamber of Commerce Building. 

Detroit. Mich.: 2213 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

J acksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angele , Calif. : 1163 South Broadway. 

Louisville, Ky.: Room 405, 421 West Market Street. 

Memphis, Tenn.: 266 South Water Street. 

Minneapolis, Minn. : ~13 Federal Buildiug. 

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

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: Room 812, 20 South Fifteenth Street. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

P ortland, Oreo·. : 215 New P ost Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, Wash.: 1406 Vance Building. 

(ll) 
EXECUTIVE ORDER 

CoDE oF FAIR Col\IPETITION FOR THE CAP AND CLosURE 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, for my approval of a Code of 

Fair Competition for the Cap and Closure Industry, and hearings 

hrving 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 

Competition complies in all respects with the pertinent provisions 

of Title I of said Act and that the requirements of clauses (1) and 

(2) of sub ection (a) of Section 3 of the said Act have been met: 

NOW, THEREFORE, I, FRANKLIN D. ROOSEVELT, President of the United States, pursuant to the authority ve ted in me 

by Title I of the National Industrial Recovery Act, approved June 

16, 1933, and otherwise, do approve the report and recommendations 

and adopt the findings of the Adn~inistrator and do order that the 

said Code of Fair Competition be, and it is hereby, approved. 

THE \V HITE HousE, 

October 'EO, 1933. 

Approval Recommended : 

HuGHS. JoHNSON. 

FRANK.LIN D. ROOSEVELT. 

17131°-188-24-33 (m) 
OcToBER 16, 1933. 

THE PRESIDENT' 

The White House. 

Srn: A proposed Code of Fair Competition for the Cap and 

Closure Industry was submitted to the Administrator on Augu t 8, 

1933, by the Cap and Closure Division of the Glass Container Association of America, representing 83% of the known members of 

the Industry. The hearing was conducted in W a hington on Septenlber 15, 1933, and the Code was revised during the recess of this 

hearing and is submitted in its present form for approval. Every 

person who requested an appearance was properly heard in accordance with statutory and regulatory requirements. Only one person, 

the President of the Amalgamated Lithographers of America, requested recognition and entered an objection to the labor provisions 

of the Code as submitted. 

The Industry which is relatively small and closely interrelated 

with the Glass Containers 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 Industry, will necessitate an 11% increase in employment and that 

350,000 dollars will be added to the yearly payroll. 

R:EsuM:E OF ConE 

Article I states the purpose of the Code. 

Article II accurately defines specific references made in the Code. 

Article III sets forth the mandatory labor provision , minimum 

age requirements, maximum hours, and minimum wage rates. The 

maximum hours are limited to 40 per week for factory, oftice, and 

branch en1ployees. Factory hours are permitted to be flexible over 

a six-months' period, but are not to be In excess of 48 hours for any 

one week. The minimum wage rate, varying from $15.00 to $14.00 

for accountin~, clerical, office~ service, and saies employees (excepting outside salesmen), is based on population differentials. For factory, mechanical, and artisan em.ployees the minimum is 40¢ per 

hour. 

Apprentices and learners without previous experience may not 

constitute more than 5% of the total number of employees and their 

wages shall not be less than 80% of the specified minimums. The 

period of apprenticeship and learning is limited to three months. 

Higher paid employees (up to $35.00 per week) are protected by 

an equitable readjustment clause. 

Article IV establishes a Code Authority of five members elected 

by the Industry. with additional .(~ot exceeding thr~e) repres~ntatives to be appOinted by the Administrator and provides machinery 

for obtaining statistics. 

(IV) 
v 

Article V sets :forth the Fair Trade Practices :for the Industry, 

including an open-price structure with no limitation placed upon 

the prices any firm may quote. 

Article VI contains the mandatory provision respecting amendments and provides for the submi sion of proposed amendments by 

members of the Industry. 

Article VII sets forth the action followed pursuant to a violation of the code. 

Article VIII tates the effective elate. 

FINDINGS 

The Administrator finds : A. Thi Code complies in all respects 

with the pertinent phrases o:f Title I of the Act, includinz without 

limitation, subsection A of Section 7 and subsection B of ;:;ection 10 

thereof; B. The Cap and Closure Division of the Glass Container 

Association is truly repre entative of the Cap and Closure Industry, and the bylaws of this Association provide no inequitable restrictions to membership ; C. The code is not designed to promote 

monopolies or to eliminate or oppress small enterprises and will not 

operate to discriminate against them, and will tend to effectuate 

the policy of Title I of the National Industrial Recovery Act. 

The Industrial and Labor Advisory Boards have approved the 

Code as now presented. The Consumers Advisory Board approves 

the Code with one additional recommendation. The Legal Department has checked the Code as to form and has approved it. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HuGHS. JoHNsoN, 

Administrator. 
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CODE OF FAIR COMPETITION FOR THE CAP AND 

CLOSURE INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policy and purposes of the National Industrial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Cap and Closure Industry, and shall be 

binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Industry" means and includes the business 

of producing in the United States and selling caps or closures and 

liners therefore of the types and kinds referred to in connection with 

the following Divisions of the Industry which are hereby recognized and defined : 

A. The "Tinplate, Aluminum and Zinc Screw and Lug Cap" 

Division consists of members of the Industry producing and selling 

caps and closures made of tinplate, aluminum, or zinc, designed for 

use in connection with G.C.A. (Glass Container Association) Numbers 300, 100, 125, 150, 175, 425, 400, 410, 415, 450, 1300, 2900, 1200, 

2200, 1600, and 1900 Glass Finishes, and all other screw or lug types 

of caps or closures made of tinplate, aluminum, or zinc for any 

other glass finishes than those herein specified, except cover caps 

for catsup bottles and screws caps designed as a unit or in combination with bands to serve as nontamperable seals and caps for use in 

home canning or preserving. 

B. The "All Other Tinplate Aluminum, and Zinc Cap " Division 

consists of members of the Industry producing and selling all types 

of caps and closures for glass containers made of tinplate, aluminum, 

or zinc other than those specified in Section 1, A, except Crown 

caps and milk-bottle caps. 

C. The ":Molded Cap" Division consists of members of the Industry producing or selling caps or closures of every type and kind of 

molding compounds. 

D. "The Cap and Closure Liner" Division consists of members 

of the Industry processing and selling liner pasteboard and p~per 

liner material for use in metal and molded caps as defined in Section 1, Paragraph A, B, and C. 

Other divisions may be formed from time to time by interested 

groups of members on application to and approval by the Code 

-4-uthority and of the Administrator. When so approved the definitiOn of the division shall be added to the list of divisions recognized 

by thjs section. 

SEc. 2. The terms "President", "Act", and "Administrator", 

as used herein shall mean respectively, the President of the United 

(1) 
2 

States, theN ational Industrial Recovery Act, and the Administrator 

of said Act. 

SEc. 3. 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 paym.ent of 

such compensation. 

SEc. 4. The term "employer" as used herein includes anyone by 

whom any such employee is compensated or employed. 

SEc. 5. The term" plant" means a plant engaged in the Industry 

as herein defined. 

SEc. 6. "~1ajority vote." Each member of the Industry shall have 

one vote. At any meeting of members of the Industry, members 

thereof having the right to cast at least 51 percent of all the votes 

and whose sales volume for the preceding 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 preceding 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 

body provided for in Article IV of this Code. 

SEc. 8. The ter1n "The Association" means the Glass Container 

Association of America . 

. A.RTICLE III-LABOR PROYISIONS 

SEcTION 1. Employees shall have the right to organize and bargain 

collectively 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 

from joining, organizing, 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 approved or 

prescribed by the President. 

SEc. 2. No member of the Industry shall employ any person under 

the 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 manufacturing 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. 
3 

The maximmn number of working hour for office or branch employees in the Industry shall not be in excess of an average of forty 

( 40) hour per week over any one month's period, and not in excess 

of forty-eio-ht ( 48) hours in any one week. Provided, however, that 

the provisions of this section shall not apply to executives and supervisors, outside salesmen, technical and laboratory staffs, watchmen, 

and tho e employed in emergency maintenance and emergency repair 

work. 

Employers shall not reclassify employees or duties of occupations 

performed by employees so as to defeat the purposes of the Act. 

SEc. 4. 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. 5. No employer shall pay any accounting, clerical, office, service or sales employee (except 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 town or city of 250,000 population or less. 

SEc. 6. No employer shall pay any factory or mechanical worker 

or artisan less than forty ( 40¢) cents per hour unless the hourly 

rate for the same class of work on July 15, 1929, was less than forty 

(40¢) cents per hour, in which latter case not to pay less than the 

hourly rate on July 15, 1929, and in no event less than thirty (30¢) 

cents per hour. 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 piece work performance. 

Female employees doing the same work as that performed by male 

employees shall receive a rate of compensation equal to that of such 

male employees. 

Apprentices and learners without previous experience in the Industry shall be excepted from the provisions of thi ~ Section ; provided, 

however, that the total number of such apprentices and learners shall 

not constitute more than five ( 5% ) percent of the total number o:f 

employees subject to the provisions of this Code in any one plant; 

and provided further, that the wages paid to such apprentices and 

learners shall not be less than eighty ( 80% ) percent of the minimum 

rates of pay specified in this Code ·i and provided further, the period of apprenticeship or learning s 1all not exceed one month. 

SEc. 7. The existing amounts by which wages in the higher-paid 

classes of employees, up to employees receiving thirty-five ($35.00) 

dollars per week, exceed wages in the lower-paid classes of employees, 

shall be maintained; provided, however, that where the foregoing 

provision results in rates that are inequitable as between plants, for 

the same work, revision or wage 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 

Code other than executives and supervisors who receive more than 

thirty-five dollars ($35) per week, watchmen, and outside salesmen, 

17131°----188-24----33----2 
4 

shall be paid overtime at the rate of time and a hal:£ 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.) 

ARTICLE IV-Am.nNISTR.ATION 

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 Administrator such additional nonvoting 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 

defined shall be entitled to participate in the election of such members of the Code Authority. Such election shall be by 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 participating in the selection or activities of the Code Authority shall: 

(1) Impose no inequitable restrictions on membership, and (2) submit to the Administrator true copies of its articles of association, 

bylaws, regulations, and any amendments when made thereto, together 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 representative of the trade/ industry and in other respects comply with the 

provisions of the Act, the Administrator 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. Each div"sion shall have authority to prepare and from 

time to time recommend revisions of its own schedule of Trade Practices 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 Authority shall approve such action forthwith, subject only to review 

by the Administrator. I:£ 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 exclusively to such division. Any action taken pursuant to this Section 

shall be subject to approval by the Administrator after such notice 

and hearing as he n1ay 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 p'ermitted by the Act, subject to the right of the Administrator, on review, to disapprove or modify any action taken. 
5 

(a) The Code Authority shall be charaed with the supervision, 

ad1ninistration and enforcement of this Code and may issue such 

rules and regulations as may be neces ary to effectuate the purposes 

of this Code. The Code Authority shall have the right to establish 

its own rules for the con luct 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 Act is being 

effectuated in the Industry as herein defined, the Code Authority 

shall make such reports as the Administrator may require, and each 

employer shall make such sworn or unsworn reports to the Code 

Authority periodically, or as often as it may direct on wages, hours 

of labor, conditions of employment, number of employees, production, shipments, sales, stocks, prices, and other matters pertinent to 

the purposes of this Code as the Code Authority may require, and 

each employer subject to the jurisdiction 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 amounts necessary to defray 

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 value of net 

sales. 

In addition to information required to be submitted to the Code 

Authority, there shall be furnished to government agencies such statistical information as the Adinini trator may deem necessary for 

the purposes recited in Section 3 (a) of the National Industrial 

Recovery Act. 

(c) Any and all information furnished to the Code Authority 

shall be deemed confidential and shall not be divulged to any member 

except in summary, but shall be available to the Administrator upon 

request. 

(d) The Code Authority may designate the Glass Container 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 responsibility and 

that when such Association acts in such capacity, it shall comply 

with all the provisions of this Code applicable to the Code 

Authority. 

(e) The Code Authority may from time to time appoint such subcommittees 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 shall approve, shall 

present for the approval of the Administrator, any proposals for 

supplementary provisions or amendments o£ this Code or additional 

Codes, applicable to the Industry defined herein 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 the right of complaint 

to the Code Authority and of a prompt hearing and decision thereon 

in respect to any decision, rule, regulation, or other course of action 
6 

of such Code Authority. Such complaint must be filed in writing 

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 

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 prescribe, in respect to any decision, rule, regulation, or other course 

of action, issued or taken by the Code Authority. The Administrator may cancel or modify any such action of the Code Authority. 

ARTICLE V-TRADE PROVISIONS 

SECTION 1. The rules of fair trade practice for the Tinplate, 

Alwninum and Zinc Screw, and Lug Cap Division and the Cap and 

Closure Liner Division of the Cap and Closure Industry as set 

forth in Schedule A attached hereto, are specifically made a part of 

this Code. 

SEc. 2. vVhere the costs to a member of the Industry of executing 

contracts entered into prior to approval of this Code by the President are increased by the application of the provisions of this Code, 

it is equitable and promotive of the purposes of the National Industrial Recovery Act that appropriate adjustments of such contracts 

to reflect such increased costs be determined by arbitral proceedings 

or otherwise. The Code Authority shall assist in effecting such 

adjustn1ents. 

ARTICLE VI-GENERAL 

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) Discriminate against small enterprises. 

SEc. 2. Within each State this Code shall not supersede any laws 

of such St ate imposing more stringent requirements on employer 

regulating the age of employees, wages, hours of work, or health, 

fire, or general working conditions than under this Code. 

SEc. 3. Prior to December 31, 1933, no member of the Industry 

shall increase the sale price of his product sold after the eff~ctive 

date hereof over the price on July 1, 1933, by more than is made 

necessary by actual increases in manufacturing, distribution and material costs, or by taxes or other costs resulting from action taken 

pursuant to the Agricultural Adjustment Act andj 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 may take his cost price on that date as the base 

for such increase in selling price as is permitted by this section. 

SEc. 4. Any member of the Industry shall be eligible to membership in the Association and there shall be no inequitable restrictions 

:imposed upon such membership. 
7 

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 approval of this Code or any 

conditions imposed by him upon his approval thereof. 

ARTICLE VII-VIOLATIONS 

Violation by any per on of any provision of this Code or of any 

rule or regulation issued thereunder or any false statement or report 

made to the President or the Code Authority shall be constituted an 

unfair method of competition and the offender shall be subject to 

the penalties provided by the National Industrial Recovery Act. 

ARTICLE VIII-EFFECTIVE DATE 

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

RULES FOR FAIR TRADE PRACTICE FOR THE TINPLATE, ALUMINUM, ZINC-SCREW 

AND LuG CAP DIVISION, AND CAP AND CLosURE LINER DIVISION 

It is agreed by the members of each of the above-named ~vis~ons in subscribing 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 with 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 expiration of such ten 

days such member shall at all times maintain on file with the Code Authority 

a list showing complete prices for all his products in the Divisions and shall 

not make any change in 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 Code Authority so that copies may be sent to 

each member of the DiYision; provided, hO\Ve\er, that the first list of prices 

filed by any member of the Division as above provided shall take effect on the 

date of filing thereof. 

'l'be Code Authority shall immediately send copies of the fir t list so filed 

to all members of the Division 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 they so desire, revisions of their price lists which shall 

become effective upon the date "·hen the revised price list first filed shall go into 

effect. 

These lists shall be open for inspection to all interested parties. 

SEa. 3. None of the prices shown iri any list shall be changed except by the 

filing of a new list as provided in Section 2. _, SEc. 4. Recognizing the necessity for uniform practices in regard to discounts, credit term , frei o-bt allowances, and all other terms of sale, the 

members of the Division may by a majority Yote of the members of the Division from time to time determine on such uniform practices and file them with 

the Code Authority. After approval by the Administrator, any violation of such 

uniform practices shall be an unfair trade practice. 

SEc. 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 Code; provided, however, that 

such contract bas not been made and entered into before the effective date 

hereof in contemplation thereof and with the intent to defeat the purpose 

thereof. 

SEc. 6. The sale of discontinued lines or obsolete or imperfect caps is permitted provided they are sold at not more than 50% of the seller's lowest price 

as published for the same size or type of cap in effect at the time of such 

sale, and such sales shall not be a violation of this Schedule. 

SEc. 7. For all purposes of the Code the following-described acts shall constitute unfair practices: 

A. The imitation of the exclusive trade mark or trade name of a competitor. 

B. The sale or offer fo1· sale of any product of the Industry with intent to 

deceive customers or prospective customers as to the quantity, quality, or specifications of such product. 

(8) 
9 

C. Th marking or branding of product of the Industry for the purpose or 

with the effect of mi. 1 ucling or deceiving purchaser with respect to quantity, 

quality, grade, or pecifications of the good purchased. 

D. The payment or allowance of ecret rebates, refunds, credits, or unearned di couut , whether in the form of money or otherwise, or extending to certain 

purcha ers confidential prices, special services, or privileges not extended to all 

purchasers of the arne class under like terms and conditions. 

E. 0011'1!1nercial B?"ibery.-Directly or indirectly to give or permit to be given, 

or offer to give, money or anything of value to agents, employees, or representatives of customers or prospective customers, or to agents, employees, or 

representatives of competitors' customers or pro pective customers, without the 

knowledge of their employers or principals, as an inducement to influence their 

employers or principals to purchase or contract to purcha e from the makers 

of such gift or offer, or to influence such employers or principals to refrain 

from dealing or contracting to deal with competitors. 

F. To permit sales agents or representatives to split commissions with purchasers. 

G. Free Deals and/or Oontributions.-The offering or giving of prizes, premiums, or gifts in connection with the sale of products, or as an inducement 

thereto. 

H. To make false invoices. 

0