Approved Code No. 84-Appendix No.6 Registry No. 1636-o1 

NATIONAL RECOVERY ADMINISTRATION 

CODE APPENDIX 

FOR THE 

COSMETIC CONTAINER 

MANUFACTURING INDUSTRY 

(Subdivision of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON FEBRUARY 12, 1935 

WE DO OUR PART 

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U.v. DEPO~TO~Y 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1935 

i'or sale by the Supetintendent of Documents, Washington, D. C. - - • - • - - - - Price 5 cent8 
This publication is for sale by the Superintendent of Documents, Government 

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Approved Code No. 84-Appendix No. 6 

CODE APPENDIX 

FOR THE 

COSMETIC CONTAINER MANUFACTURING 

INDUSTRY 

As Approved on February 12, 1935 

ORDER 

APPROVING APPENDIX FOR THE CosMETIC CoNTAINER MANUFACTURING 

I N DUSTRY 

A SUBDIVISION OF THE FABRICATED METAL PRODUCTS MANID'ACTURING AND 

METAL FINISHING AND METAL COATING I .r DUSTRY 

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 Competition 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 H eard 

having been duly publicized, and no objections having been received 

thereon; and the annexed report on said Appendix to said Code containing 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 expira1153470----1573- 52----35 (1) 
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tion of that time it shall b-ecome effective unless good cause to the 

contrary is shown to the National Industrial Recovery Board before 

that date. 

NATIONAL INDUSTRIAL RECOVERY BoARD, 

By W. A. HARRIMAN, Administrative Officer. 

Approval recommended: 

KILBOURNE JOHNSTON, . 

Acting Division Ad1ninistrator. 

WASHINGTON, D. c. 

February 12, 1935. 
REPORT TO THE PRESIDENT 

The PRESIDEKT, 

The W kite House. 

Srn: This is a report on an Appendix to the Code of Fair Competition for the Fabricated ~fetal Products ~1anufacturing and ~1etal 

Finishing and Metal Coating Industry, approved on November 2, 

1933, and as amended on June 1, 1934. 

GENERAL STATEMENT 

The Cosmetic Container l\1anufacturing Industry, being truly representative of this Subdivision of the Fabricated Metal Products 

l\1anufacturing and Metal Finishing and ~1etal Coating Industry, 

has elected to avail itself of the option of operating under the Code 

for the Fabricated Metal Products ~1anufacturing and l\1etal Finishing and Metal Coating Industry, with the assistance of additional 

fair trade practice provisions. 

RESU1VJ:E OF THE APPE:N DIX 

Paragraph A. Definition, accurately defines the term "Cosmetic 

Container Manufacturing." 

Paragraph B. Governing Body, sets up a governing body consisting of members of the Subdivision and also provides for an Administration ~1ember. This governing body is to be known as the 

Subdivisional Committee for the Cosmetic Container l\1anufacturing 

Subdivision. 

Paragraph C. Effective Date, pre cribes the effective date of the 

Appendix. 

TR -DE PRACTICES 

Section 1 provides that no member hall 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 les than the invoiced price plu all incidental 

costs. 

Section 3 provide that no member hall secure confidential information by :false or misleading tatement or by bribery or any other 

false method. 

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 purcha e of specific promotion services. 

Section 5 provides that no member of the subdivision shall grant 

terms on payment of sales more :favorable than net cash. 

(3) 
4 

Section G make it a violation for an~T member of the Indu try to 

publi h or circulate threat of uits for infringement of patents or 

trade marks or an other legal proceeding not in good faith. 

Section 7 prohibits the breach of a written contra t between a 

competitor and hi consumer. 

Section 8 make it a violation for any member of the Indu try to 

grant the right to purchasers to remove tools from the employers 

plant because of the payment by the purchaser of fitting up charges 

to cover the co t of such tool and fixture made e pe"ially for an 

order. 

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 o:fferina to make contracts under 

term of which the customer shall have the right to take delivery 

of any part or all of the goods after 90 days from date of first deli ery; (provided, that contracts may be accepted for more extended 

time.) 

Section 11 prohibits the failure to invoke available legal remedies 

upon breach of contract by a customer for the purpo e of securing 

competitive advantage over other members of thi ubdivision. 

Section 12 makes it a violation for any member of the Industry 

to di criminate in price in fa or of purcha ers of good for export 

compared with domestic purchasers; provided that nothing shall 

prevent discrimination bet\\een purchasers that makes only due allowance for differences in grade quality, or quantity of the commodity sold, or in the cost of selling or transportation. 

FI TDINGS 

The Deputy Admini trator in his final report to the board on said 

Appendix to said Code having found as herein et forth and on the 

basis of all the proceedings in this matter: 

It ha been found that : 

(a) Said Appendix to said ode is w ll designed to promote the 

policies and purpo e of Title I of the ational In lustrial Recovery 

Act, includina removal of ob truction tD the free flow of interstate 

and forei 0 n commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of indu tr. for the purpo e of cooperative ac ion among the 

trade groups, by inducing and maintaining united action of labor 

and managem nt un er adequate goYernmental anctions and upervision by elirninatina unfair competitive pra tice , by promoting the 

fulle t pos ible utilization of the pr ent productive capacity of 

indu trie b avoiding undue re tri tion of produ tion (except as 

may be emporarily required) by incr a ina the consum tion of inn trial and agricultural produ t throuO'h incr asinO' pur ha ing 

power by r u inO' an reli ing unemploym nt, by irnpr ving 

tandar of la or and by oth rwi r habilitatin industry. 

(b) aid in u try normally mpl not more than 50 000 mploy e · an i not la ifi d b th N a i nal Indu trial R co ery 

Bo rd a. a major indu try. 

(c) The Ap en i t aid ode as approv d complies in all r -

pect ' ith th p r in nt pro i ions o£ sail Titl f aid Act, inclu -
5 

incr without limitation Subsection (a) o:f Section 3, Subsection (a) 

of Section 7 and ub ction (b) of Section 10 thereof; and that the 

applicant a sociation is an association truly representative of the 

afore aid Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

(d) The Appendix to said Code is not de igned to and will not 

permit monopolies or m0nopolistic practices. 

(e) The Appendix to said Code is not de igned to and will not 

eliminate or oppress small enterpri es and will not operate to discriminate against them. 

(f) Those engaged in other teps 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 

approved. For the National Industrial Recovery Board: 

FEBRUARY 12, 1935. 

w. A. HARRIMAN, 

Admiruistratilve Otficerr. 
CODE APPENDIX FOR THE COS:METIC CONTAINER 

MANUFACTURING INDUSTRY 

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 Competition for the Fabricated Metal Pro lucts Manufacturing and Metal 

Finishing and Metal Coating Industry, as amended, (the terms of 

which apply to each member of the Cosmetic Container ~ianufacturing Industry Subdivision) the following provisions are established as an Appendix to said Code of Fair Competition of the 

Fabricated Metal Products Manufacturing and Metal Finishing and 

Metal Coating Industry for the Co metic Container ~1anufacturing 

Subdivision of that Industry. 

A. Definition.-The term " Cosmetic Container Manufacturing " 

is defined to mean the manufacture for sale of unfilled containers 

made in whole or in part of metal (other than tin decorated containers 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. Subdivisional Oonw&ittee.-The members of the Subdivision 

shall set up a Subdivisional Committee for the Cosmetic Container 

Manufacturing Subdivision, hereafter referred to as the "Subdivisional Committee", consisting of as many members as may be determined by and in a mann r satisfactory to the Busic Code Authority 

and the National Industrial Recovery Board. The National Industrial 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 without vote and hall erve without expense to the Subdivision. 

C. Effective Date.-This Appendix shall become eff ctive ten (10) 

days after its approval by the National Industrial Recovery Board. 

TRADE PRACTICES 

Any member ·of the Subdivision who directly or indirectly through 

any officer, employee, agent, or representative violat or vades any 

of the following trade pra tice provision · hall be guilty of violation 

of this Co le. 

SECTION 1. Olas 1'-{ication.-N o member of the Subdivi ion hall 

fals ly cla ify any 1 rodu t of thi Sub Evi ion as to nature th re f 

for the purpose of s curinO' lower freio·ht rate . . .. SEcTION 2. Combination Sales.-No m mber of th ubd1v1 wn 

shall ell or offer to sell con mo 1iti . other than produ t of this 

Sub(livi i n f r th purp e of influen ing a . al :f produ ts f this 

Sub ivi ion at pri b 1ow the jnvoic prj plu all in id ntal co t 

(6) 
7 

of such product . I £ an l when the product of this ubdivision are 

sold in oml>ination with product of other indu tries, the invoice 

must learly show the unit price of all articl li te . 

E TION 3. E pionage of Competitors.- o member of the Subdivision hall ecure or attempt to e ure confidential information concerning the bu ine of a competitor by fal e or mi l ading tatement 

or representation by fal e imper onation of one in authority, by 

bribery or b any other unfair method. 

ECTION 4. Advertising Allowances.-No m mber of the Su division hall use in a ale agreement the term ad\erti ing allowance ' when it i appli d to an part of the price offer or u ed 

otherwi e than to denote the pa 7ment for the purcha e o:f specific 

promotion services. No member o:f the Subdivision hall arrange for 

ad-vertising allowance except in agreement entirely separate and 

di tinct :from ale agreements nor shall any member grant advertisincr allowances except as payments for specific promotion performances which are po ible practicable, and capable of bejng audited. 

SECTION 5. Terms.- No member of the Subdivision hall grant 

terms o:f payment on ales more fa,orable than net ca h, thirty (30) 

days, or if discount is allowed, such di count shall not be in exce s of 

two (2%) percent 10 days proximo net 30 da s. Bill must be dated 

the day of shipment. S:r.cTioN 6. Threats of Litigation.- No member of the ubdinsion 

shall publish or circulate threat of uits for infringement of patents 

or trade marks or any other legal proceedings not in good :faith, with 

the tendenc or effect o:f ha.rassing competitors or intimidating their 

customers. SECTION 7. Interference with Another's ContrMts.- No member of 

the ubdivi ion shall induce or attempt to induce the breach of a 

written contra t between a competitor and hi cu tomer or source of 

supply or interfere with or ob truct the performance of contractual 

du ies or en"'ices co\ered by an uch contrac . SECTION 8. Fitting up Charges.- No member of the Subdivi ion 

shall grant the right to purcha er to remove tools from the employers 

plant becau e of the payment by the purcha er of fitting up charges 

to cover the co t of such tool and fixtures made pecially for an order. 

The terms on fitting up charge shall be net ca h. After a period of 

two year without a reorder unless otherwi e mutually agreed upon, 

the employer shall be at liberty to make any di po ition or u e of uch 

tools a he de ire . No exception to thi Section shall be allowed 

except under circumstance to be defined by the Subdivi ional Com- mittee and approved by the X ational Indu trial Recovery Board. 

ECTION 9. Goods R etu·rned for R epair or R econditioning.-No 

member of the Subdivi ion hall accept after performing hi part 

of the agreement of ale the return by the purcha er of damaged or 

shopworn merchandi e without previou return authorization by the 

aid member of the Subdivi ion. A charge to co\er the cost of reconditioning and handling such merchandi e shall be made. Nothing 

in thr Section hall be con trued to preclude the return of merchandi e when authorized by a member of the Subdivi ion due to defects 

in workman hip or material. 

SECTION 10. Contracts or Order for Extended Deliveries.-No 

member of the Subdi i ion shall make or offer to make contracts, 
8 

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 available 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 n1ore 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 contract 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 taken.) 

SECTION 11. 001npletion and Cancellation of Oontracts.-No member of the Subdivision shall fail to invoke available legal remedies 

upon breach of contract by a customer, for the purpose of securing 

eompetitive 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 

Jterein hall I revent 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 transportation. " Export trade " as used herein is defined to mean export 

trade as the term is used in the Export Act of 1918. 

Approved Code No. 84-Appendix No. 6. 

Registry No. 163G-Ol. 

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