Never saw that flag before. You might try posting on a forum called "Warrelics" under the Japanese militaria sub forum.
The symbol inside the cap just says 中 (chū - means middle, and in this case it means "regular size")
The emblem on the cap might be some arsenal mark, or maybe even a corporate mark (from a company working for the military, like a railroad or something).
Sorry I can't be of more help.