Business Library 

CLASS _____ _ 

BOOK ____________ _ 


OFFICE OF NATIONAL RECOVERY ADMINISTRATION 

DIVISION OF REVIEW 

HISTORY OF THE CODE OF FAIR COMPETITION 

for the 

LADIES HANDBAG INDUSTRY 

WORK MATERIALS NO. 71 ~ 

Administrative Section 

March, 1936 
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9R11 

HIS1·GRY 

of the 

CGDE GF FAIR CGMPETIT:CN 

for the 

LADIES HANDBAG INDUSTRY 

Approved Cod_e No •. 332 

Author: Oliver W. Pe arson 

Robert C •. Ayers 

Chief, Histories Unit 
y ~· ---~--

8 1940 

..• .. . . 
FGP..EiVORD 

This history of the Code of Fair Conpetition for the Ladie;:; 

Handbag Industry is mimeograyhed in order to make ava ilable a 

srunple of the code histories prep~red by the Division of Review. 

A similar service ~ill be r endered in connection with certain 

other code histories. 

In order to get a complete picture of National Recovery Administration materials applicable to a given industry, one nust 

visualize such a documented code history as this supported by 

the three volumes of evidence '.7hich ':Vere sent to the President 

at the time the code nas recomme nded for his approval, plus a;ny 

studies in tnis field either by the Division of Research and 

Planning or by the Division of Review of the National Recovery 

Administration, plus the va st amoQ~t of material in National Recovery Administra tion files which uas developed in connection 

with the formation and administration of the code. These constitute a veritable treasury of information concerning the 

operations and problems of industry. 

This. history contains a documented account of the forr1ation 

and administration of the coCJ.e; the definition of the industry 

and the principal ) roducts thereof; the classes of members in 

the industry; and account of the sponsoring organizations, the 

conferences, negotiations and hearings which were held, and the 

activities in connection with obtaining approval of the code; 

the organization and opera tion c•.' f the code authority, the diffic~lities encountered in the a~inistration, the extent of compliance and non-compliance, and the general success or lack of 

success of the code; and an analysis of the operation of the code 

provisions dealing with wages, hours, trade practices, and other 

prov1s1ons. These and other matters are canvassed, not only in 

the terms of materials to be found in the files, but also in 

terms of experiences of the Division Ad:11ini strators, De:puty .Administrators, .Assistant De9uty .Administrators and others connected with the code form~tion and administration • 

.At the back of this history will be found a brief statement of the studies and work undertaken by the Division of Review. 

March 14, 1936 

. II 

9811 

L. c. Marshall 

Director, Division of Review 

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http://archive.org/details/historyofcode36unit 

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Letter of Transmittal 

Preface 

Code and Amendments 

I. GENERAL INFOBN..ATION 

A. Definition of Industry . . . . . . • . • . . • . . • . . . . . . . . . • . . . • • • • • • 2 

B. Definition of Industry Member • • • • • . . . . . . . . • . . • . . • . . . • • • • 4 

C. Statistics of Industry.................................. 6 

II. HISTORY OF CODE FORMULATION 

A. Sponsoring Organization • • • • . . . • . . . • . . . . • . . . . . . • . . . . • • • • • 14 

B. From submission of first Draft • • . • . • . . • . • • . . • . • . • • • . • • . • 21 

C. Public Hearings • . • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 

D. From Public Hearing to Approval......................... 25 

III. CODE ADMINISTRI\.TION 

A. General Preliminary Discussion • • • • . . . • . . • . . . . . . . . . . • . • • • 45 

B. Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 

C. Budgets a..'1d Bases of Assessment • • . • • . . . . . . . . . . . . . . . . . • . • 63 

D. Ad.rninistration of Code • • . . . . . . . . . . . . . . • • . . • . • . . • . . • • . . • • 67 

IV. OPERATION OF CODE PROVISIONS 

A. 

]. 

c. 

D. 

E. 

F. 

G. 

H. 

Definitions ............................................ . 

Wages ................................................... Hours .................................................. . 

Other Labor Provisions ................................. . 

Administrative Provisions ••.•.•................. . ......• 

Price and Accou_nting Provisions ••..•...........••.•••••• 

Trade Pra ctices ...•..................................... 

Other Pro,risions ......................................... . 

82 

83 

85 

86 

90 

90 

92 

96 

V. RECOMME1IDATIONS 

A. Undesirable or Unenforceable Provisions •. ......... .. .. .• 98 

B. Compliance . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 98 

C. Limitation on Production................................ 98 

D. Possible Consolidations ••. .. . . ...•... ••. ... .. ..•. .. ..•• 98 

VI. PERSONNEL 

.A. Personnel connected with Code • • . . . . . . . . . . . . . • • • . • . . . • • • • 101 

B. Administration Member's Report 

Appendices Exhibit N 

VI I. APPENDICES 

A. Exhibits .A to Z and Al to Gl. 

VIII. INDEX 

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MEM OR.A.."'IDUM 

TO: 

FROM: 

SU13JECT: 

January 7, 1936. 

L. C. Marsha.ll, 

Director, Divisi or. of Review 

Oliver W. Pearson 

Hi story of the Code of Fa.ir Competition 

for the LADIES HANDBAG INDUSTRY. 

There is tr:ms:~ i ttod herewith the Hi story of 

the Code of Fa ir Competition for the Ladies Handbag 

Industry. 

This History W8,S comp iled in this office and 

was written in acco rdance Y? i th the model outline 

issued on July 10, 1935. 

It is believed that this record, a s su~mitted, 

adequately r eflects the History of the Code of Fair 

Competition for the Ladies Handbag Industry. 

Approved: 

Walter Mangum, Director, 

Industry Section #3. 

9811 - iii -

Oliver W. Pearson 

L_RE FAC E 

The La.die s Handbag I nclustry vias founC.ed in this country some fifty 

years ago C?. nd entirely man ned. by i mlJort ec. craft sr:1en. It continued for 

many yea rs as a craft t r atle and only of qu ite r ecent yea rs had it evolved 

into one of mass u rodu ction with G.n i ncr easingly l a r ge u se of machinery. 

Pros2erous for years, al ost beyond belief, net ~e turns to owners 

very large, workmen or craft smen eal'::ir:.g $1 50 - $200 and in many case s 

$300 wee ~r it i s not diff ic··,.lt to un1er st a·'ld the ment al condition that 

came into 'being, wnen r2echino1 ·y ca::le ~1 )0 11 t~e hori zon, mass p roduction 

threatened, l abor be cane r e stive :- C'lnd fL1a lly. t he dep r ession ar r iving 

with its consequent lo ss of profit s o To r-tl l of the se f a ctor s can be 

ascribed t he unre st t hat existed rinen 'i-. I gR.,A. 1.-1a s pl a ced upon t he statute 

books, put notwi thst anc.ing t he disagr eeing view points all had a belief 

that a Code was necessary, and nould p rove a s it later did, of great 

benefit. 

Reviewing t he eighteen months I s~ t with the L:1.dies Handbag Industry and its Code Aut hority a s its Admi nistra tion Member, looking back 

over ~he other i ndustrie s, some ten in nu.rr.be r, to which I was accredit ed, 

I ree.li ze today the outstanding quality of the work done by the Handbag 

Group. 

Perhap s other indu strie s he d more com lete data, such for insta..l'lce li.'!illine rjr al1d I-.1en 1 s He.t s , but none better welded to e~ er conflieting i nterest s, none accomyl ished more i n f inding the common ground 

upon which to stcmd t hen cUd t his sorel y beset handbag Group. 

Beginning ith ~he days i wJedi('l t ely ? r eceding the ena ctment of the 

N. I .E. A. hea rts and ::Jind.s of i'.1cl.ustry 1 er e f ill ed r;i t h malice, hatred, and 

all unchari ble ess . T:1is st o.t e of i':1 ind .:or.tinued t hr oughout t he code 

negoti a tion period ?.nd di d no t r.i s::~.:;:.Yp8a r until s orne t hr ee months af ter the 

coG.e went i nto o:pernti 0n, anc t he s·~ nor!t Y}_s of t he Code era found manufacturers more . cohE.si ve, mo:..·e thought ful in t he i r r el a tions with ea ch 

other, more inclined to look at t he ir p roblems from the view p oint of industry a t la:::-ge. 

I would not have it beli eved tha t t he Millennium arrived but certain 

it is a degree of i ntelligence ;;as inj e cted into Tiha t had been a :9urely 

selfish outlook and all bade f a ir to p rof it accordingly. 

In t hose st days one eould feel in the air the different at mosphere 

that pervaded deliberations, one trade organi zation had come into being 

instead of several who hitherto had been a t ea ch others throats, and from 

what I was told by a number of Qanufacturers the industry at the end of its 

first eode year '.las able to show at l east some financi al sta tements in 

black ink, t he first in several years. 

Close study has be en made of r Pcords in our files as well a s those of 

the code authority in Ne w York. Many things stated are of necessity based 

upon my own recollections, but he ed with officials of the l ate code 

authority, and I believe the following chapters repre sent a fairly comprehensive history of this code. 

9811 

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9811 

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G~NERi~.L I NFO]MATION 

Definition of Industry 

Princiual Products 

Products under other Codes 

Definition of Industry ~emb r 

Classe s of Mamb ers 

Statistics 
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I. GENERAL L:-FO:rtl.iATION 

In ~; ilin g t.1i s ~1 istory refer ences were !TID.Cl.e to all avail c:.ble 

material in :ic:·.sLington and New York . T:!is inclucled: 

1 • PRI l-JTED CODE 

2 . Volwnes I, II end III of Code 

3. Voluines I, II c.ncl III of Ameml.ments 

4. Volumes A a.hd :S, Centr2.l Recorc1s Section 

5. Ad inistration Orders 

6. De)uty 1 s Files 

7. Genere.l ]'iles 

8 . Re searc:1 anCl. ?lannin ~; Files 

9. Government Agency Reports 

10. Code Authority Rep orts in re 3udgets 

11. Code Autho rity files in New York 

ow in posse ssion of t he Ne.tional Autl1ori ty 

f or the Ijacli es r:endb c:g Industry I 347 Fiftl1 

Av enue, New Yc r k .) 

12. Administr2.tion Le!;1be rs Files, New Yo rk City 

(Now in p rocess of i nc or)oration into General 

Files, Was~ington, D. C.) 

13. Pers ne~ con t ::tc ts with lF.te Code Directors 

14. }~ istory of Industry by Ab. ·i.Iittent:1al, Code 

Director and. filecl wi t :1 Dr. 1. C. !.Iarsl1e.ll 

about September 15 , 1935. 

15. Bulletins issued by th e Code Authority. 

A. Definition of Industry 

T~ e Code as originc:.lly p ropo sec~ August 11, 1933, by the 

Associated ~~2nd.bag Inclustries of America, Inc. submitted ~1 e following 

as t:1e definition: -

II The term 1 handb at; industry ' r-·."' used ·.1erein i s 

clefined to mec:m t~ e m:mufa.cture and/ or wlwl esc:-l e di stri but ion of l ?..di es ~~an db a~ s, p ocketbooks a ncl J:mrses. 11 

11 Th e term ' :::) erson ' o.s used ::.1e rein ~w.J.l inclucl.e 

natural :;ersons, }artners:. li ~J s, 2.ssociations 

anr.l. corp orations. 11 

11 Tl1e term 'em Jloy 1 as usecl >.erein sho.ll include 

every ) erson actively enga ged in tl1e lJrod.uc tion 

2-nd/or wholesale distribution of products of t!1e 

hanclbe.g industry as herein defined. 11 

(E~ ibit A- )art 2 , ? age 1 .) 

As d efined in mim re.~; ... ed Revised Draft November 6th, 

1933 it read : -

9811 
-3-

liThe t erm 'Indus tr J ' a s usec.l. 1e n includ.es 

~1e m..:'.nu?c-.cture of l adies' : c> .. nd.bac;s, po cke t -

b o.:-l: s "'.Ild l)Urse s . 11 

As :.::tev:.sei'l_ f 0Ve11ber 2LI.. , 1933 it r er.d : -

1. "T~~e terra I I nc1ust rJ ' <'. S see~ :·.1e rein i:1cl udes 

~-e i'll.?:CD.fc-.c t 'J_re of lc ~cl ie , mi s se s, ancl 

c~-- ldren s :lc.ndb acs, l_Jo cketbooks , e..nc1. ses , 

mc:nufactured cf ~. ny rnaterie.l of eny k ind or 

nc-. t-ur e . 11 

In t_'lG draft s of De c emb er 8 , De cember 12 , De c ember 21, 1933 , 

it r emained wi t :L1ou t c:12.nc:;;e . 

(See E£:i b it A p2rt 6 , ~~~e 1: p~rt 7 , p~ge 1: part 8 , ~ag e 1 .) 

~1e ay ve~ code Articl e II , Secti on l , r eads: 

11 The t erril I iridustry 1 C'.S us ee_ :wr e i n includes the 

manuf'c cture of ladi es', mi sses', aml ~: lc~ ren s 

::.e.nr: .ba_;s, })OCketbo -:: k s , ancl. ~)urses , mc:.nuf c?.ctured 

of ny materi c-.1 of C1ny k i nd or nature . The t erm 

1 industry ' s _lc.ll not inclu de, h owever, t:1e 

JnC'.nuf2.cture of 1c-11dbags , )ocke tbooks , :;mr se s ancl 

es~1 JP.t;s L anuf '='..c t ure-i in v1l1o l e of n etc.l. n . 

The CIJP.n{;e"'m"'.d.e resultedf r om·wr:.r i aus conference s and ~xm objection by A. J . Bo.rrenb oim end t1Ir. Newmcn of tne Legc..l Divi si on, 

counsel t o t :1e lJivision (see g enerc>.l f il es Code RecorCl_) . Tl1ey serv ed 

t o c larify t he definition in ~1e. t L .ey mo re clec-.rly specified t}le 

lines soug~--;_ t t o be bovern.ed , e.ml. '!Jy eli··nin ".ting t h e t erm 11 wl:olese.le 11 

) r ev en t overla:;_) in.=; wi t:1 d.i s tribu tine; codes. 

Th e bener .e.lly cce~) e ' Ta ec;ni ng of t :1e Co de .::lefi n i tion i ncluded 

s~lO:;_J nt; ba:;s , 'ue li ng b.::·.L_;s , _lendlce rc~- i ef b ags, v c::.ni ty boxes, 

c osmetic ba.:;s , 2.nd. kJ.1 ittin.; bat?;s . ~=o tJ r, t o r 3mov e doub t s and bec ause of re)eated r eque sts f rom i ndustry for D. sti ll cl ec.rer definiti on ~1 e section WES G'.t tl1 e cl o se i n l)r vce ss of b e ing amended t o r e(1.d : 

9811 

i

1 T: "e t e rm 1 i n(;_ust r :;r' as used :1erein i n c l ucL.es 

t :_.:.A n.:. nuf .:. ctur e of ladies 1 , misses' and. 

c_lj_L'.r ens 1 ~::.c.nd.b s~s , po cke tbooks e..nd :purses, 

s~ (.. n · nG b abs , bc> t~:. ;~ b G'.f;S, ~lcn<r.:ercll ef 

b aGs, k i ddy bat,;s , v2.11ity boxes , coi.1e tic b <.1.c s, 

~cni ttin,; b a];[' , r11enuf p.ctured of <? ny m~. ri .s.l of 

any ~::incl. or natur e . ~.:.e t er n , ~:~ .c r Ter , ~:_?,11 

not include c:rticl e s cb:,unoi1l y r!lc- nuf::.:....::_-t:.~! 'C!.~Jly 

Lu .. ..,. ,., c• e na.' Tt'-=-ncv T.e' ~1e r ·:-.r-. oc~ ~ ~n '·, _, ._ r··r ..!:c, r t~C)r.;.. .) c... ~ c... 1 _ .., c..~ . \.,4"""\.J • ~ ... - ... - \J ~ •'- ! 

tr c:..vel i nG -.)ur ·-)o se s , no r cv er- n i z:" t ·-;r_:_,;s :f :)r 
-4-

what ever lJur·qc se us~ s!~I._e~J c>.rticle 

nc..m.J.fr.ctureLl for mens ' use only, nor 

r.1e.nuf c.'.C ture of l:Mc,ba .. ~; , :·1ocl:.:e tb ooks, 

)L.1r s es , vc.,ni t y Ce.ses , .?ncl s~ 1 Dc:.gs manu...:. 

f;:·.cturecl in r~:wl e of :·aet: l. 11 

}fo t e e inclusi on also of 11 l;:i -ld~r bc>.gs 11 • T-.1ese a r e p roducts of 

a grou11 of some 75 manufacturers w::.-:; a t ~1e tL:1e of dissolution we re 

being transferred fror:1 t he ug:;;c:-.~e and Fc..ncy Le c? ~:t.e r Goods Code to 

t:li s Code. 

(Se e Llinutes Lieetint"; NQ . 25- J c:n. 3, 1 935 2nd 

c orres)cndence gene r al fiJ. es) 

Considerc:·,ble o::?i_Josi ti on t o t :.1 is last :? ro :~ ed definition w2.s 

r a i secl by e S.?nit2.ry _· _ ;/7e.t er:Jr oof S) eCi c.>,lties Industry , bece.use of 

e:e inclusion of 11 b a t:lin:; b ags " 2ncl 11 cs ,1e ~ic b2. s"; for m2ny. sucJ'l . . 

we re strictly of wo.te1·proof or rubberiz ed m2.terie.ls. After severcl 

conferenc e~ wi t :1 i1ir. Kenlrid: of t: : e Sanj_t e..ry C: Je ter oc f Specia l ties 

Code Aut~10 rit , ~1is diff e rence vvc._s smco t :1ecl out. T:1ere wc.s only one 

l a r ge manufac tu.re~, (Kl e~nert t.- :1r) ~y ) ancl ~~1ree srne..J.l ones affected 

c:nd. all bu t one, w::o had n o t yet been con t a cted, ~12.cl c:{;reed to use 

Ladies an <~b lab els, i n al l items r1~1 iC 1 bordered on . ~1 is . code. (See 

Code Rec or d files) 

9811 

1. Princi~Jal. Products 

La cHes - Hisse s - C1ilclrens 

... 

Pocke tbo ok s 

=>urses (See Article II, Secti-:;n 1 of Code) 

2. Products also 1mCl.er ~1e r Codes 

Kiddy B0.gs Lu. _;.:.::_~ e and Fanc y Le2.t :1er Goods) . 

3e.. lin:?; :Bags (So.ni tE.r y £, Je.teryrc of S'..Pecic..lties) 

B. Def i n ition of Indu tr ~~.1~~r_ 

In ~e clr 2.ft of August 11, 1933 tl1e· t erm w2.s stc'.ted: 

"T11e term 1 per son 1 e.s used ~1erein s~1all 

include n0tural . pe rson s, ~Jartner s~:.ips 1 

ss ci c?. tions and cor:por 8.tions. · 

11 T:. e term 1 emllloye r 1 c::.s used :i.1erein. s~l.e ll 

i nclude every person c.cti vely eng2.t;ed in 

1e :;? r od·o..cti on c.>.nd/or w:101es.s.l e distribution of i)r ocluc t s of t:~e ::.r'..nC:bc.>,g i ndus-
try as here in defined." 

(Exhibit A- Part 2) 

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In the August 18, 1923 draft it r ema ine d as stated in Au~st 11 

form, but in the Nov emb e r 6 , 1933 form it r ead: -

11 The term 1 emnloyee ' as used herein includes 

any ne rson gage d in a ny pha s e of t he industry, 

in a ny canacity, r ece iving cornn ensation for his 

services, irresDe ctive of the nature or method 

of nayrnent of such co!!lnensation. 11 

11 The term ' employer' as used he rein includes 

anyone for whos e b enefit or wh ose business 

such an emul oyee is engaged.n 

"Th e term t memb e r of this indus try 1 includes 

a nyone engaged in the industry, ei t he r as an 

emnloyer or on n1s own b ehalf." 

(Exhibit A- Pa rt 4) 

In the r evision of November ?.4, 1933 it r ead:-

"The term t emnloyee ' as used here in includes 

any ~erson engaged in any nhase of the industry, in a ny capacity, r ece iving cornDensation for his s ervices , irrespective of the 

nature or method of nayment of such cornnensation.11 

11 The term 'Employer' Bs used herein include s 

anyone fo r 11Vhose b enefit or in whose business 

such e n emnloyee is en<?;aged . 11 

"The term ' memb e r of the industry' include s 

anyone engaged in the industry , eithe r as 

an emnloyer or on hi s own behalf an-3_ e i the r 

as manufactur er, manufacturing jobber or 

contrac t or.n 

(EY~ibit A- Part V) 

In the Dec ember 8, 1933 , De cember 12, 1933 and December 21, 1933 

r evisions (se e Exhibit A, parts 6-7-8) and in the apn roved Code , 

Artic;Le II, Section 4, ·it emai~s as ab9ve and quoted below:-

9811 

11 The term 'memb er of the industry' as u sed 

. rein in~lud s a~yone engaged in. the industry, either as an employer or on his own 

b ehalf and either as manufacture r, manufacturing jobber, or. contractor." 
-6-

Note: Tile definition of industry member includes in e.ddi tion to 

rr·a:r.ufD.cturer - 11 mC'..m:tf e.cturing joober or contr2.ctor. 11 Tl-1e r:tc.nuf c>.cturLls j obber is one who gE;3nerC'.lly uses e co1:-tr2.ctor to mcl-ce goods for 

h im 2nd to whom he supplies a ll or )E'.rt of t l1. e mE'.teri c:.l s usecl in t h e 

meking of bC'.g s. 

f 

Con tra ctors -were of t he usu.--.1 tyi> e wl1o did v2.ri ou.s opere.tions on 

b c.bs , 2nd r.:r- e suc~1 2.s m[w be f ound in c..ll gr.rment industries. Some of 

t :1es e con trc:.c t ors, h oweve r, ml::".9.e Ccin:.;:> l ete b 2.g s ancl some re-1 et Jortion s 

of ~1 is work out t o ho mevw r~:er . T,.lese contr:\ctors 'lve:r e subject to 

~1 e lJr ovi sions of tl1e Co de, but were not e.ssessecl for t lt e ex:;;:>ense of 

C'.clmini stering the Code • . 

(See cl e.ssified list of Industry Exhibit B - :;:r.rt 3) 

1• Cle.sses of ·I.:iembers · 

'1.1:1ere is to be found in J!]X:-:.i bit B, P:'.rt·s 1 

l c:nd 2 a cl c>.s sifie:J. list of m.?.nuf2.cturer s 

sl1owing ~1 e kind c:.ncl c:1r:.r c:-.c ter of goods 

mC'.m.u E'.C tured. 

C. St F1.tistic-s of t h e - Ind1...1.Btry 

Prior to the edop ti on · of tl1eir Code t his Industry' had never 

2.ttemptecl to g.:--.t h er. f 2.cb.1E'.l .d.."'.t r: , r.nd in f 2.ct hc.d- seemingly no idea 

of t he VE'.lue of sucl1 . Under 2. code ,-:md bec C~.use of c>n t:-~JpreciE'.tion 

by Code Dire ctors of the v alue cf such materi8.l tl1ere be g.:'n the 

collection of d2-t c:-·. ll~ t r~ t :;. e cl o se :pr omised t o be of .gr.e0t ·service. 

Progress was nc.turo.lly· slow b ec<.use of industry 's inertie. , due to 

t heir l a ck of understanding , c:.nd -i .t i s 2.lso to be believed,to a fe 2.r 

of disclosing end f e.cing fc..cts. 

Vol . II 

s:10ws: -

De p.~. rt en t of Comme rce figures bulletined by Code Authority 

of Bulletins issued No . · Fou r, under ~. te of December 21, 1 934 

1 933 '1931 

lJo. pf est8.blishments· 2.60 

Cost of mc.teri 2.l s, fuel $15, 298 ,920 .DO :~ 22, 600,817.00 

etc. 

Va lue of produc ts 

Value 2.dded by mMuf e.cture 

28 ,299 ,004.00 43,147,053.00 

1 3 ,000, 0H4 .QO 20 ' 546 ' '236 .oo 

1929 

290 

~35,351 ,605.00 

68 ,627 , 515 .00 

33,275,910.00 

(In dic~ting a s~ ~ decline from 1929 to 1933) 

See Exhibit C. 
-7-

om ·. e. tiv e Costs of Lc.:.bor between :,: ew York <:.r eE'. e nd outside 

Nevv York r.rec:'.. Com::_:: i J. ed in Syrin_; 19:=:3 by t he Cocle Director['.te. 

~r.~ \7 -ICRC h..1"2.A C'IUTSIDE mn ~ A_"-B_A 

B~gs to r e t ..... i l '"'. t 50-- '· ._;l S. 00 t o .)v. OO .;r o ss .,J 9 . 00 to ~~ 12. 00 gross 

(imit2.ticn 1 e :;, 1e r) 

B2.gs t o retc.il t ::a . oo .:)30 . 00 to ·,7r 00 ,_,ob . gross ')13 .oo to ' Lt :.)2-. 00 gross 

( i --ni t c:'.t ion 1 er·. t .. ~e r) 

BC'..t;S t o r e t .'"'.il [',t ._)1 . 95 -.~1 00 •,):_.1 • to ;/57 .oo c;ross ,;;33 . 00 to ·:' 39 .00 gross 

B['.gS to r e t c.i l ;-·t ·,2 Ci ,- ... ; • . .-~ 0 ;)7 .2 . 00 to s~ . oo gross )13 .oo to "'-1 ,,o .oo gr oss 

:02.gs to retr.il r.t ·,Ll ( - •,>-' • •) ,.) .:>96 . co t o 1.20 . 00 .:;r oss ;)60 . 00 to ,·,?·") 00 (,) !..J. oss 

These fiQlres .: .re bc:.secl on t l".!.G ·Jr e sent J.[.b or r .::-.tes :'low beins }X.i d in 

tl1e industry . Any cll."nges ~.n r ['.t es bec 2.use of t :.1e semi-sk illed 

definition or i n crec..s e i n wr.ges due to c. Uni'Jn "'.greement , may a lter 

~1e conditions. 

9811 

The N2.ti onP.l Autl10rity f or ~e Ledie s =EmD_b['.L:; I ndustry 

successors to e Code Authority under d.:--.te of 

Sep t ember 1 935 g."v e me t :1e f ollowi :r.g : -

* ( c:.) 

* (b ) 

(c) 

( d ) 

( e ) 

Units E:ng..--..ged 

Contrc.ctors 

7orl s en C'.~ed (e st) 

c-. i tc.l ( e ~ t ) 

Totr l volur:1e ( est) 

379 

146 

15,000 

·:ao , ooo , ooo. oo 

:?4:0 ' 000 ' 000 • 00 

e.nC:. remC'.rk e 1-C'. t five y e c:'.rs ubc fifteen units c. ~1 did in 

excess o:Z ;?l , 000 ,000 . 00 ::.nnue.lly :v:1ere2.s i n 1935 but one 

nill ~r ~~ t :':-.:-.t fi.;ure . 

I n 2.nswer t o C?Jl i n qu iry to t~1.. e Sc.tion .::·.l .Aut:_ori t y d .:;.. ted 

e~) e:nbe r 12 , 1935 , we 2.r e giv en t:1e following : 

Fi.;ured on clollc:.r vc.l ue it is l)el i.eve<l t~1<:.t 

50/a of b .:;..gs c:-.r e mc>.de of Le2. t l1e r 

so ~ of b c,gs P.re ~2.de of Clotl:.. 

( Imi t o.tion e2 ~1e r) 
-8-

Fi;ured on units eng:;.ged 

30 ~ mnn:u.L:.c tur e 1 e c?. the r 

70~ mMufc?.cture Clot~··. (L:ut.:-.t ion le .:'. t~1er ) 

(See EX:1ibi t D) 

Rese<:',rc:1 rncl PlMning files disclose in ~'- repo rt ) re)e.red 

b y J 2.,;1es P. De..vis, Febrllr'.ry 8 , 1 934 : -

Source: 

Ei.'IPLOYl.iENT 

1 921 

1923 

1925 

1927 

1929 

1 931 

1932 

1933 

Burecu of Census 

:rte:)o rt from Inclus try 

Annu~l volume apprcx. 

~~ 715 

SSJ.B 

6826 

8370 

-~0 

8747 

12000 

1.:::ooo 

1923 - l<J31 

1932 - 1933 

1929 

:~6 7 '000 '000 

1931 2.-nd 1932 

:;;33 , 000 '000 

V2.lue of 

Products 

( T~wuse?nds) 

~13 ,085 

32,732 

~3 , 105 

)7 ,435 

68,828 

Ll.c-3 t lL\7 

35,000 

35 ,000 

N0TE: - Ab ov e T': should be deducted t o cover 11roduc tion 

of Uen 1 s ;ockotbooks e.ncL bill folds. (T:1ese e.r e 

not included unde r t h i s code .) 

(See Exhibit E, p<:'.~es 1 L1.ncl 2 ) 

Cod·e Autl1ori ty Report, IAnrc~1 1 935, 

* Nu.rnber of estr.blishments 

* " to be assessed 

Annunl s&les for 1 934 & 1 935 

.Amount of sales upon which <:'.ssessmen ts have been collected 

Volume of Sc.les Ul)On whic:1 ['.Ssessments will be collected, a~l:) ox . 

Number of employees as of Dec embe r 

31, 1934 

Total pcyroll of industry 

9811 

500 

325 

~835 '000 '000 

$26,093,664 

$ 7,000,000 

15,000 

$ 9,000,000.00 
- 9-

Geo E; ::.-)~l ic ~ Di stri bu tion of 'ic-nuf ctur rs: 

Ee.stern 

Southe rn 

I.iidwe s tern 

Pe,cific. Coast 

Aree.s Defined 

Soutl1ern: 

i.iidwest: 

Pacific: 

:; ~3 ' 8 7 3 ' 650 • 00 91 .50 

601 , 4-81 . 00 2 . 30 

~90 00 5 . 33 

226 ,043 .00 0 . 87 

6 ' 093 ' 66~ . 00 100.00 

~w York; Me.ssachusetts; Connecticut; 

?J.1o c'!.e I slnnd; New Jersey; Pennsyl V<,nic-.: 

l(ie..ryl <ncl; Virgini.::, ; Fl oricla; c..ncl Texc..s: 

Illinois; Wi s consin; Eis·souri; ancl ~1 io: 

J c.s:· .. ingt on !:'..nd Ce..l ifo rni e. . 

(See E~ ibit F , paGe 1. 3ud t) 

0TE : -

9811 

* Tl1e s eemi n G; dispc.ri ty is to b e expl <.ined in 

one c2.se by ~iv g 2. totc.l wi t'hout bre.cl<:down , 

in the ot~1er by se:p2.r o.ting mMuf c.cturing 

units from contrac t or units. 

~---

--- --- - .... 
-10-

Files of Lc>.bor Advisor y :9oC'.rcl f oun0_ i n Genero.l Files: 

PGCI~ETBGOKS, PLL=t.::>ES 1 CARD CASES (Primc:rily Le2-t:1er) 

P0cketboolcs - ·

1.:urses - cc.r d co.ses - 1929 

No . of 

Zc:t . 

·,7 <'-ge Earn e l' s 

Ave. for yeRr 

4...() hrs. ·· 

uncLer 

Over 40 

Uncler 45 

-4.:5- 48 ~1 . 

Inclusive 

Over 48 but 

not over 54 

290 10 , 430 (7) 18U (176) 6 , 248 (58 ) 2 ,185 (32) 1,750 

Gi. DI C~1·~ ~-. J~ IYDU:STRY 

Ka . \7 e.Ge Co st Added 

t::s t c>.b . Ec-.r n . Wc:.t:,es of t. V['..h..<.e Vc?..lue ---

1931 253 8, ;)4'5 10 , 086 , 600 21 I 1 7 I 931 1

::1 , 9 26 ' l 90 20,008 , 259 

1 929 290 10 £.~ 30 1 5 , 229 , 422 35 , 231 , 60 5 68 ' 6J7' :31 5 33, 275, 910 

1927 257 8 , 570 13 , l 6 9 , :SO 9 29 , 61 J , 52-1 57,344,655 27 ,726,131 

1925 207 5,518 7, 291,113 16 , 235, 882 32,731,725 16, <'"95, 843 

DI STRIB Ti v~~ 1 929 

New Yorl-:: 192 Est. 6 ,101 wor:.cer s 10,952;801 v-v:"~.s e s 47,631,43lvc.lue 

Pennsylv2ni a 17 II 1,04:0 II 957 ,711 II -1,306,827 

Lic.s SC. ~1U.Se t t S 17 II 696 II 709,779 II 3, 540, ·111 

New J ersey 8 II 800 II 96.~ , 623 II 3,6::56, 966 

Then o:1io , Illinois, Eissou ri, Cal i fo rni o.. , -.7i s con sin, C'nd SffiC'l l C'lTlOunts 

in ot!1er s t t".t a s. 

AVERAGE A1Jli1JAL .7AGE 

u. s. 1931 :')1 '180 

1 S29 1,460 

1927 1, 536 

9811 

II 

II 

II 
-11-

W<-'.Ges of cert.,.,_in vr men on VP.rious op cr~ t ions in ~ S) ringfie1o., :.lc'.ss . 

factor y : 

Se ·it. l 0 "")- .J{..JJ Se t. 1 928 

-~ ou r1y 

-:ours :;jcrnir.; s ?...:-, t e ---- ~ours EC'.rninGs 

172% 64. 60 .... 71 

t,) 2 12n.;e 1 56 91. 43 

16% 61 . 26 36 in 169 7 2 . :2 

178 49 .83 28 1 926 170:.~- 58 .03 

65 ~ 57.36 3L1_::,. -·, from 163 80 . 4:8 

10LI..:4 37 . 19 3r; l. t... ,.,; cJ.F.',Y wo rl" 138:; 66 . 40 

183% 76.03 Ll.:1 t o 1744 85 . 04 

piece wo rk 

Pro)orti cn of i'; . Y. St r:.te ·:roduc tion t o t o t c;.,l producti on 

1929 

To t eJ. 

u.s. (;68 '627 t ::515 1ue of p r oducts 

Ste.te 47,631 ~3 1 

66. 81 ~ of t~ e total number of esto . .'ol s~1rnen ts 

58 . ~,9 ~ of 1e t o te.1 numbe r of V'l'8.t;e ee.rners 

II II II 

Jf 1~':-] l'1 C.l1 t S i n N. Y. Sto.te, 167 <'..re i n New York Coun ty 

9 c~ re in Kin.c;s County 

5 a re in queens Count :r 

Of 17 )le.n ts in Penn2 .. , 13 a re in :1 il r.. ;~ c: . 

9811 

. - l _our_y 

Re.te 

58i 

43 

34 

4:~ 

48 

49 
-12-

Picture pf ~:~nd E~ Industry 

As given cf July 1, 1934: compilec.1. by Cod.e DirGe tors: (See General 

files) 

In 190~ 

In 1 929 

As of July lst 

1934 

In 1929 

In 1934: 2.s of 

July lst 

9811 

Tl1e en ti1~e nf'.ti cn cLid ,:;c , 500,000 worth of business 

II II II II ::)6 7 1 000 1 000 in 1 ee. t l1er bc>,gs 

1,000,000 in evening and 

fr'.bric b ags 

4,000,000 in bc>,gs to retail 

for (a . oo 

w volumG o:i:' business wo..s ~-o,ooo,ooo. 1 out of 

wh ich :i28 1 000, 000.! cov e red O.?,gs to r eta.il f:tom 

20¢ up to (a .oo , Emcl t: e bc.lc.nce for b2.gs from 

a. 95 u p to ::;2'3 . 00 ee.ch. 

35 ~ of :..e N::.tion 1 s r e tail busin ess in ~1en<lbe.gs 

is done between IJ:1 1e..nks:; ivin 6 D.:-,y and December 24th. 

Bc,c:;;s a t ~2 . 95 ['.lld up r'.re mc..de by h['.nd in New York 

Ci ~r . 

Bc>.g s from 201t· to :~1. 00 c>,re made by t:1e new e,nd 

modern c~1inery in t >c out-of-town fP.ctories. 

PB.GDUCTIOlJ IN Ui.~ ITS 

:ie pro duced 2-Z ,OCO ,000 units 

Yle ~) od-...lced 70 1 000 1 000 units from 20¢ up to ;:a.oo, e-nd 

!), , 600 I 000 11 11 ~~2 . 95 and up 

Code Authority l:ionthly Reports 

(See EJ/l2.ibit F) Yve.ge Re1Jorts- Sal es Volu..lneUnit Voh:m1e - C1 o..ssific.:.tion of workers engE'..g ed. 
9811 

-1 -i

HI STORY OF CODE FOR.1ULATI ON ---

Spo;1sorin, · Orgen iz tions 

Off icGrs, Co 0e Commit t ees 

i~ t Dr~f t to ?ub1ic Bearing 

Pu'ul ic HeClrings 

1 '9 .flrovc.1 
-14-

l. Comme rci c?.l A&enci e £ - no vr i -,_able mr.te i a l. 

2. De·oartmant of Commerce celFus oi':' manuff'.cturers - no segreGate d 

rnatarial . 

3 . De-.)a)·tment of Comrne):'ce ce!l"Us of 0i stribution- no segregated 

mat e):'i al . 

4. Reser r ch c:-nc. Plann i < bulletiH s r-J.n d recorcis . 

::=i . Cocie Autho r i t -r fi l es. 

6 . Coce Author it r -~ulletL1q (E:-.h i Jit C) 

7. Admini st r~tion meMbe~q 1 f ile . 

8 . F2ti o:r:al Autho it ~' o.f t lle L:·.cHes h:c- n<l.be.g Industry , 347 :fi f th 

Avenue , l~er.r 7o r::: . ( Succe ":!ors t o Code Aut hori t -r .) 

9 . Genera l Files. 

II. HISTORY 0..:' COD ~ Li'O:'.l.LULAi:I OF 

A. SPOPSORL G ORG.nl'IZATIO~TS 

1. Sta ter:tEmt re t::-ue r e-•J:rescn tP t i on , 028 a nr. o\jectives. 

Co c tieetir, , e tc. 

1. W~ le t~e f i rst ~c , ~h ibit A, part 1 an~ 2, Pith its 

coverins lett er of t ren sf'li t t al '.7as ·1 r e rc.entecl b_y t!le As s o ci a ted Handba,c:; 

Industrie s of America , Ind ., !"er.' Yor~c City , AUt_·-ru.st 28th , 1933 , it Pas not 

the document en t e r ed fo r t he f irst nnO. on l· ~ ~ourlic he a:::-ing De cember 8, 

1933 . 

Ha r c onferenc es \··el·e ite l d hr i noustr'.r g roup s t }u;mselves, E> nd '7ith 

Dm:m ties, ot 1 in l~G. : Yo:-:.1

'.: enc.i. Wa<lL", ~ton , beforn r:::vi si o·-1 s r;ere agreed 

UDOl1 c?no_ the i nst'lJJner.t ·qut i nto :r t i sfc.ct ory c.: ~oe -Fo;_· t (.mt hearing . 

'fhe revised <iocuMent ··r:-..s :'i n · 11--- s·?Oi1sure c by : 

.A ssoci e.tGc':. Ic.r.dbec no ust:~ie ~ of America, Inc., J.Teu 'York 

J:idnest H~:. r~ fO[l. ~; ::.no Srr1[·Jl Le ter -:-:ax-e s Association Inc., 

Chicar;o. 

rna_,,_strial Ccnlllcil oJ' t~1e Lac.i es qc-:ncrue, :; Industr7 , Fen 

Yvrk. 

Cl aif'lin -;~ to repref'.en t ir: the i !-' c omoi nec1. membership 75:'[, of the 

industT"r 1 s volume. (See trc>nsc ript of ea ~inc; Dec e:rtber 8, 1933). 

It \7o.s mai nl :r throu-o;l.1 t:1e efForts of <r. A. Uittenthal, Chairman n,rtC: Vice Presic1en t c .. nd. Li.1

, l:. ::ose s s o::. , Exe cutive Sec re t o.rv of the 

first Tla 1ed Associ a tion thn t t h e Co o.e Pe.s put i nt o usabl e shape for the 

public ;_1earin,g nne. that t he :om~ so rin_2,· Associ a ti on s c ame t o,gether to 

joi::c.tly ap·p ea r be::'ore t ne Admi i~ ist r"t on . 

The objects o:f the f irst s:oonsoring ort~an tion that presented 

the first code are set forth i n the :paragraph belo':·r: 

9811 
-15-

11 ·lte obj -· ct of this ~ssocL..ttion shc:ll 'oe to secure 

and ~J rovide c oo·oe rat ivu anc u.r i tecl. e:?lor·c in all matt e rs 

relatin~ to tie ro ,resr, development, ~elfare or imJrcv er.0nt of con c~i. tions in t he 1-fcndJ.::J':; Inc .. ustry and industri e s c or:rel ete d. cnct CO'f. t 1·i·o,lting to rmo affecting the 

uel::.'ere anf -.JroP·7'e£s o": t he iancr'u a .s Ino.ustry in e.ll its 

bran c~1 , to :aster tlE tre.Cu:3 21: 6 ~orrunercial int e rests 

of its n embe r s ; to secure fr eedom fro1n unjust anO.. unlariful exactions; to inculcate nn.d mai:1tain just and eaui tabl e ··J:cinci··Jl es; to eliminate :.Elff'.i -· or r:ro ro el' :,>racti c es; 

to ast a-0li sh 2nd mc:dnte.in un · formi t ' r anCI. eoui tv in the 

cust oms and comme rcia l usages i;~ t he Incust:ry ; to acouire, 

p r eserve , collect, n.nd disseminate busin ess information 

deemec useful, ::.,C.vantag·eous or velu"ble to its Members 

reg . rding· the handbag Inducotrv; to reform, corre ct and 

p rev·ent an:r abuse a nd acjust c.omr:: ercial controve r sies, 

mi sunderstending s or g rievances bet;!een members or bettteel1 its memberr and the tr.:-:o.e; to enforce its <> o.id objects and :pur"? osss e.rnm:g its mer:~bers ·::, ..... sucn 6..i sciplinc.ry a nd othe r measure s as may be a ::_:::-eefl. u p on by them e..nd 

as r~ay be p rovi cied. by its by-la··rs ; D.nd in g eneral to do 

all matte rs tending to the imp rovement of the 1andbag 

Industry in all its c onme rcif1.l asp8cts. 11 

(Se e ~c:.-;:'a~ra·oh 3 , ·oc:·,ge l, letter of transmittal Exhibit 

A, '?e.rt 1.) 

This org:w i :3Pti on car·19 into beir:s before the Code era . (see pa::;e 19, 

t~1is istor~r ). 

7.: ile the :.·e is no c'.ocu.11 e::-:. t ory evi ( ence of 'lha~~ tr~ ns-:J ir ecl 2.t tl1e 

various me e tin<";s c:.r:d conferences, members of indu.str•r, preferrir.g , I .?.m 

tol d , not to ~'l av e nri tten ec or s of t l1eir marq bitt er fi Ghts, the ': 'ri ter 

is fully a'·:a.re o:.: t~ e con _,;.iti o-r.s t:1;-;.t e.-i sted lor:..! y rior to the ena ctment 

of the iJ. I. R. A. ant of those that o-b tatned. o.".lrint_' the en suing mont"1s. 

The argument s "DresentC;c ... ere c:- ec". U)On the l o:b or situation obtair!-

ing in 193 , a situ,'1.t i on C[.us ee ·:)y the r8.~io !".: oi incustry from its 

. irst anc'l ) ri:.ci .. )al horr1e base FelT Yor~~ Cit:- o.nd e t he r contri.0uti.ng fac -

tors upon ~:h ich I r;rlll touch l c:.ter. (Pc:•.ge 16 , this h i story) 

The shifting of inC'.ustry from the Le tro··Joli tan City sta rted a om1t 

1928 and. 1929 F.nd -:'?S CG:.used, it is clc:.imed and I believe cannot be c1.1s-

~'!~1.t 3 ". , b:r t:1e lw .... r handed tactics of the labor leac er~ ) t.1en in ·oo"e r. 

As more D.no. more :nanufc::.cturers loca t ed t heir -·)lants in cities c:a r 

tonns outsi oe the Eetropoli tan area, taking ::tcl.v.<1nt.2.ge of the chec:n J. o.'oor 

t :1ere to be fom:d, na.turall:r those rem['.inin.g in 1:e-: York and u..l'lder Union 

agreements found competition, nhich Das l<:r r:;eJ-r ba.::>eii upon l abor costs, 

almost un-meetable. It IT"S not hone-v3r 1.1IJti:: . ..,.. .. (;'.'!e re nell into the de -

pression yeats, it h a co ns te~t lo~e ri ~g of Jri.e floors that r eal ~it

terness came into e::istence . 

The N.I.rt.A. l-w. in(: ·bo<.n \"ritten e.nr1 r,c.st~ec~ , rnc:n-r Fen York City manufac turers believecl the:r sa .. · an op-p ortuni t :r to even U'9 co ndi tim1s if t h ey 

9811 
-16-

\?ere c-.llo\7eo. tovJrite into aco0.e f or t hei r ir:. c:·\).st:-.--:--, L 1.bor cla!Osifice.tions, 

-rJag e scr:1.l es an d hours t hat \'!o·u.lrl ma2:e more c.i fficu:t. t -Ghe path of' tl1e outof-toPn manuf cturers. 

To g ive a clear cut ~J ictur e of t;J.e conch tion.:: th.::tt l eG. to the then 

exi stinr; situation, I quote from a cl.OC1lffient :fi ec~ on or about Se1Jtember 

13, 1935 1vit:!1 the Acministrati on (D . i:e r shall :r?.evie,:: Divisi on ) c-..nC.. ·orepatecl by the former Code: Direct o .:' i'~:i.' . ;:.,. . L: itten th:· l. ~:-l1ib it G) 

11Up until t he year 1929, more then 85 .~ of the in dust: ~r \!as locat ed 

within the Metro:9 olj.ta.n area of i.Je\7 York . The industry loc:-- t eo. in Ne\7 

York has been in contractuc.l relations F ith the Union f or a l rwst t11enty 

years. In the year 1928 , the fi "·st rn ;:rr.ufc.cturer moved a·.:a;.r from ~1e 

unioniz ed ce;.1tre of }~e Jol i tan Fm· York, ailll be'?:an manu.:fa ctur ing in 

Allento...-m, nns rlv nie., 1J.Tlder non- union conditi on s . At thi s time the 

Union minimum .1/Jat;es filed by er=;reement rr i th the manuf:;; cturers in iJew York 

were $45 . 00 a v1eek for skill eCl 'Jorkers. Aci.Jnission of rr o rl\:ers to the 

skilled branches ~ere contro lJ ed by the Un ion , so that i n s ome of t h ose 

bran che s of the i ndustry YWrkers ea:L·ne( on a :9 i e c e rrork brsi s f rom $100 . 00 

to $200 . 00 in a 44. hour 1.7Gek . I1hose man .lfec turers r:ho mov ed from Fe,:' York 

were une b l e to obtain ski l.led r1 orkers in their e~r11E:C t i ve localiti es. 

They vre:L~e coml)e ll ec3. to emplo}' Porkers 1ri thou t a ny -rn·evi ous e:::9eri enc e in 

the ino.ust ry . Il'!achinery ~1eret i'o re littl e used in indus try Yta~ invent e d 

to t Dke the -~ c: e of man:r of the operations ··Jerfo ne c~ by s ki lled. -; ork er s 

in tr1e l. ~e'. ! York f e.c to ri es. -:-Jo r ke .rs in these ner; localiti es Pere oaid 

$ 6. 00 or $?. 00 pe r neek, nr.d they rro r~ced from 48 to 54 ho1l:c s a ''!e~lL 11 

11 :/i th tho tremen dous di fferen c e in l a bor costf"., t hose mamlfecturing 

outsi de of Ne· ' Yo r k , nere e.b le t o i;;i v e great er values or sell for less , 

r:i th t he result t hat the r,wnufacturers ope r ati ng i n :i}e\7 Yor_r. 1.l.ider Union 

conditions v1ere f orce d. to mee t tl1i s compe tition by sf'1.c:rificirJ.; the ir 3Jrofi ts. The suc c ess of the f e··; n}1o ~,o d .\t a~r, of f e r ect the i n centive for 

othe rs to fo11o ,., . In the yeo.r 1.933 , onl ;/ C' ~J t 50. h of the inc.1.u stry sti 11 

r ema ined in the Letl·o·ooli t<.:;.n e.r ea of 1Je··.7 Yor;:. J:hos e 1:-:10 'Tlovecl O':' Je ned 

nen f a ctorie s locat ec in the east ern ste:tes, a f e'' in the Ci1icag o e.rea , 

a nd a fet! small uni ts ;r ere sc CJ t te rec t h roughout t he countr~r , chiefl ·" on 

the Pacific Coast. The Unio 1 was una.ble t o est<S~.' li sh Union conditions in 

the se fa c tori es ou tsi O.e of New Yorl: . 11 ( Some out of tm-'n f a ctories were 

and aTe uni oni z ec~ but 1Jnde r clifferen t conditions the.:t1 t h o se of 1Jei'T York 

Ci t 'T) • 

"The factories r emaining in lJe r York ':7ere c hi e fl;r tho s e making the 

hi gh grade handbags whic~l r eauired the mo st skillful n orke rs. 11 

11At the time t he Code \7 <.'.s b e ing c.raft ecl , the ind.u str:r rras about 

equally divi de d betrreen those manufacture rs havin ~ contractual relations 

with t he Union located in :t:-Te\7 Yor ~, ano · t hose ni t hout Union condit i ons 

a ll of whom vre r e loca ted. out side of lJeyJ Yorl:: . Factories in r:e·.-· York 

\>: ere paying :first class n orkers ( b)r Union Agreement) $3.5 . 7 5 e. week , and 

sec on d class n orkers $32 . 00 a wee:c Ge n eral he.l p about $18 . 00 a ueek 

for a 44 hour ,,._ eek. Fa ct ori es outside of Neu Yorl: we re !Ja-.ring their best 

workers a bout $20 . 00 to $22 . 00 <..1. n oek enC. .c;ene r ;:.l hel :1 from $6 . 00 to $8 . 00 

a week for a 48 to 54 hour ':7 eek . " 

9811 
:-17-

11Bi tter struggle resulted because of the efforts of the Unioniz ed 

f G.ctorie8 to er;tablish in the Cod.e n class ification of the '.-Jorkers 8.Ccording to their skill and the oyeration s _ el~fo:rMed at 1 .. ar;e scales r·,Jproximating those that Fere being :9aid in Union f a ct orie s . Those manufacturers not unioniz ed , fou~h t to ·~;revent tho cl sific: tion of the -rro r-

~cers ancJ the ~r-to li""-' hing of ;·rage scale s L: the Co c,e a ·oove the minimum of 

$14.00, claiml n .. that their '.-·o ~ers n ere no t ski l1eci , that tl1e syste'"'l of 

'17ork employed in their f a c t ori e s, .:::no17 n as t :1e 11 se cti rm svstem 11 (not ~J ermitted. in 8 Union ?acto r"') cl.id. not rec•.:iro r n:r slci l l; that ner.r machi ne r y 

anc_ nen methoci.r· "revoluti nni z eL~ t i1e menufa c turing o: ac i e s handba,g s , - articularl:r in factori es m~.' dng low price bag s of clo th, (imita tion l eathe r ) 

to reta il at one d olla :t or e~s . At this time so;; of the manufa.cture r s 

making these ch ec:.·9 bo.g s '.·1 e re locr>tec. outsi cie of I.ie trO) Olitan l\re\7 Yor': . 11 

11At the tine t l1e Co de for t he industry rre.s e.col_) t ec. , the \7ac;e scal es 

in the indust-r7 r e2embled soJ:~ e,:· ha t a toboggan slide , ;";Oi.ng from $35 .75 a 

week (the minimu;·f'J deman6.ecl by t :1e Union for sl:ilJ.eo ·.7o;:kers) dmm to 

$6.00 a ne el- p a i o. in same outside factories. 11 

Meetings ':!e r e so fr eq_uent, c~i scussi on ·9 rolonged. an d acrimonious, 

almost to the poin t o:f blovrs, t hat one ·ro~1CI ers hm7 those taking part 

found. time to attend to the ir pro c.uction a nd selling ope r ations. 

' Through t he refusal of the Ac"urlini str a ti on to n ri te in to the CoCI.e the 

asked for classi f ication or '"age sce.le s above the ninimurn, labor clause s 

Tiere at l ast i l'Oned out, but only to a deg re e , for there n as inserted a 

p rovision, Articl e I V, Se ction 2 , for 11 semi skilled", end a ·rage set f{D'r 

them. This was staye d in the P:::-e si dent 1 s order of e.pyrova l &nd became 

the subject matter of a l a ter hearing, proving t o be a c o11 stant thorn in 

every one' s si (l_e. 

Ha.ving ar:!:·ived at some semblance c. f -o ea ce, dissensions broke out 

anew over the set u o of t he Code Authority , the method of selection, and 

the division of mem-bership, as ·be t '.7een out of tOT'n ano. Nen York. This 

was finally se ttled, althou.,.gh not to eve ry one's S[1 tisfaction, a nd t he 

Code Authori t :r nas f ina ll•' set up a s rovided .. 

Of t i1e sp011 sorir.g or.':;anize.tions, t'- 'O p l aced no restrictions u -:_Jon 

membership and. dues rre re not le ~e . These t -:ro we r e the Associated Hand.-

·bo.g Industries of .A.'"'leri ca, Inc., Neru York, a nc t he h:i dFe st Handba,g c~ 

Small Leatl1er ·::a::es Associ a tion , Inc., Chica:;o . The r1 embe r s:1.i p of the 

t ;lirC. Grom? , t ;1e Indust r ia.l Council of the LaG.ies :randbaG IndustJ:"'f, lJ8\7 

Yo c ':72. s confine(_ t o manufa.c turers having con tre'.ctual r e lati ons ·-i th the 

Union. Pa rticu.l E1.rs of U1ese thre e g rouys will be found ir. t he succeec~:i ng 

:_Ja ra.s ra~9 h s. 

2. Off icers - Cod_e Cor:un itt ees, Int e r ested G-rmms 

T:1e officers of the various Inc,_ust ':"''' .:' rmros '.ino s-.Jonsored t he Code ·- ..l .. ~ 

nere: -

Associa ted Handba.C' Industri es of America, Inc., l-7e': York, -N.Y. 

( Succe ed ir. ,~ 1e Leathe r Gooc:.s A~ socinti o l .) 

9811 
-18-

Julius Hiche l Pre si de n t 

A. Hi tt en t haJ. Cho.i rnan f:· 'l . P r es. 

Samu e l Gol cisrr. i th Tr e c:- surer 

f,'io:ri s I mme r man Se creta r'r 

J,·iaurice S. l iosesson Exe c. ecr etc; :c~ · 

i :E'~~ ilc & ? e l oinen, I nc., U. Y. 

l3 h m & Li t. t entha.l, H. -:..-. 

Co1 fsmi tri ros ., R. Y. 

3e craf t : ;f :;. , Inc . 

Asso c. ~-'andbag .Industry of 

!!iG l~ i ca , Inc . 

Inco r p orateo J une 14th, l9 ~J2 Uhci.e r t h e Ja· -s of t he St a te of l:Je\7 York. 

Ha s mem-be r sh i p of 100 c onc ern s t :h r ou .. ·h o1,1 t the Uni t e0. Ste.tes. 

1-H dY'le st Fano.b a r.: and Smal l Lea the:r -: .').~ '2 As socia.t i on , Chi c.a g o, I 11. 

Presi dent 

lst Vice Pres. 

2nd Vice Pre s . 

Trea sur e r 

Se creta r y 

Ha r ry Ho rri s 

"Jm. A. 'J:anne r 

Sar.uel lvia l OIJ 

n on. D. Levine 

Ec1v . H. Luce 

App r oxi mat e Liemb ershi p 15. 

li n~i s Eann ('C l.eill-r I nc ., Cl1i c ago, I l l. 

Roya l Leat h e r Goo d s Co ., St. Lo'J.i s , Lo . 

Cry s t a l Leathe r Goocls Co . , Chicag o, Ill. 

Hir ":'o Leatl1er Go od s Co., Cl1icpg o, Ill. 

~20 'fi{ . Adam s St . , 0hi cag o , Ill . 

I n du stri a l Co\lil c il of t he Leather Goo ds i.Ianufa c tur e :rs Inc., N'ew York , F. Y. 

Presi d.en t Micha e l :Bi en en 

Vic e Pres. Samue l A. J. Ro s en t hal 

Se c. & Trea s . Milt on J. Lefcort 

A ppr oxi iilat e lv!em be r sl.1i -9 50 . 

Bi en en Davis Inc., Ner .. York 

?.out Ros en thal Co ., NeTI orl~ 

One oth er i m:_:)Qrtont· ra e Assoc i ati on c ame i nto bei ng durin[; t he 

first day s of c ode W::" i t in,<_; . ·J1rli s ".7tls kn 01. rn a s the lJc-,ti ona l Ass ociation of 

Ladi es Hc.n clua c; Lanufa c tur ers (f i r st :::non n as P o-pula :r' Priced HEin dba g l Innuf a ctu r ers Ass ociati on ) . 

I quote the fo l l on in2; 1ette;:- t o e!I,Jha s iz e t:'1e .po siti on taken b: r t h is 

a s soc i a tion , t h r ough its c ounsel , a~ Ci. t o i11 ..:L strc. e t h e fe :: lin.g e:"':i r- ting 

be ,~r n the c o::-:1 tencii :~ c;ro".lps. 

SCHLESI:iJGER & I~ ;; ~C{ 

COUI:'SELLORS AT: LArf 

J am e s C • '.! o :r t ~,- , E so . , 

Assi st a n t De-outv Admi ni st r a tor, lJ. J. . A. 

Depart ment of Com ce ~uildi g 

~ar.hin on, D. C. 

Dear Sir: Re : . La die s Han C! .. ;Bar:: IndustJ?Y Co0.e . 

27 0 J3 ro adTI2 r 

Ne11 York Ci ty 

e~ er ?2 , 1933 

I n t hi s c onne ction ~r Tie b e p ermit ted. to advi se you t hat '78 r ep r e sen t 

9811 
-19-

the Nati anal As" ocia.ti on of Ladi es H811o:oc:> g I:Ta nuf ct rer~ ( f orr:e r l y 

l a r Pric ed :Ian dbCJ.g Manufa c t ure :rc· Assoc i a ti on nrmc hc:> ~e d Seut embe r 11 , 

1933) -.,hi ch has a p r e s en t r.1 sh J of f or t y among r:hich a r e i nc l uo.e <i 

practi ll r a ll of the l <:1.r g e s t ma.'1uf.P.ctur e r s in t he indu stry . The membe r shi-p of thi s Asroci e.t i on ·.:ill be con side r a bl y ut~ en ted. by t he affi l i a -

tion t he r err i t l1 of 'c~1e f.i i C..Peu t :-an cl Ba.g cJ: Smal l LaRt h er '.Ja r es Associ a ti on, 

havin_o; a memoe :rsbip of t 1:ent3r- t,·ro a n<i to ap :9 i~ e such c:.ffi l i ati on a spe c ial 

mee ting of t h e i-i d':"• e st H::.n d. B"'.,::. & Small eathe:_~ ·.Tr r e s ~soc at n has been 

called fo r Se-p t emb e r 23rc.1 , 193'?i , 2..t Chica ,so a n cl ti v e t1.le r e t o t ae 

Secreta ry t he r eof 1:mde r c"ate of Se·9t emb e r 20 , 1930 , r;r i t es u s -

"I be li eve aft e r that mee t i ng , i n f a ct I am a 1mo st su re , 

n e c an s en0. you our fo r mal a c cept a n c e of y our ··Jro-,Josi t i ons 

and h a ve yo~:.. enrol l a s a su~Js •. 11 

The e~· t membe r sl1 i p of t he :i\T2.ti ona l s~ at n of La di es qar._ dbag ;,ianufactL.:.r e r s ( exc l usi ve of t he I.Ii d· ·est Ho.nd J3a6 & Sma ll Leat he r 'Jare s 

Associ a ti on) i s r epr esentative of t h e entire indu stry , cont rols a ma jority 

of prociucti on a n cl em-_Jl oys a l arge ma jority of t h e emp l oye es engag e d in the 

industry . i !an:r of e membe r s of t h is Associati on Nere f ormerl v meli1b e rs 

of the Ass oc iat ed Handbag In<iustri es of Ame rica , Inc., the " submitting 

a.ss oc i ation, 11 a nd r e c en t l y found. i t ne c e ssa ry to seve r t he ir r el a ti on s 

t he rewith , b e c e..us e t:1e i n t erests of and t he p robl em s affecti ng the memb e rs 

of ~1.e Assoc i a +,i on we r epr esent a nd t hose i n c ontrol of the " submi ttins 

a ss ociat ion 11 aTe c onfli c ti'Tlg i f n ot d.i n.me trically o-pp ose d. t o each othe r . 

The purpo s e of thi s l et t er i s to advi s e y ou , a s ne a.re i nformed, t hat 

t h e 11 submittin:?," association " i s i.1ot ::ep re sentati ve of t he i n du stry and 

t hat i t i s n ot c: ut ol~iz c, t o ~:: or act for t h e memb e r s of the Associati on n-e r ep r es-'3 rJt and t o re spr-ctfully su g.sest Jchat, hi i.?; ~1 t of the inf orma tion herein con t a ined, i t mi 7h t b e a dv i sa b l e to hc>.ve i ts rep re senG['.t i ve 

p a ::ticiuate i n the el i~ na y hearing on Sept ember 28th. 

I ES: I G 

nc . 

Ve r y t r.lly yours, 

SC ~Sil ~ & K?I liJSKY 

By Si e& ) I . E. Schleci ng e r 

Ch e oL:ice r s of t l1e :;.ra t i ona l Associa tion of LaC:.ies Handb a;;:: L'i anuf tuj rs 

n ere : -

Pr e si dent I r a Ro senzwei g 

Vi c e Pres. Morris Aa r enau l~ enau and -:7 olf Inc . , Fa ll :g_i v e r, Mass. 

Treasurer 

Secretary 

Hen:r;r Le:rers 

Eti1e l F"2.~e l 

Appro:->:ima t e L:emue rship 40 . 

9811 

Eeye rs l if.g . Co., l·ro!'1··al k , Connecticu t . 
- 20-

This Ass oci a tion took exce n t o the Code as nt d a nd r emained in 

)p i ti on l onr; aft e r ap~) oval. 

Th e Hidrr e st ern Group nn d. t h 8 si.lal J l oc a l La sn r.-~s 'ct s Grou-p (Hav e rhill Ladi es Han dbo.g Associ a ti on ) nere :i:lOt C'Ctive rJa r ticipe,nt s i n- t he s e 

fi ghts , in f ac t 1.-,re r e Tra o.e J~srocb.t · ha r0. l :f mo:re than i n n.<:1.me, onl-,r 

coming into ~ ab out t h i s t ime . Of the l a c-!t name d_ Associ o..ti on, n e 

ha ve no rec ord beyond. mention h e r e and. t here c.t the l1e 1-~1. ri ng o.nd no -oarticul a r s a r e at pre sent ava ilabl e . 

The f olloning ue r e t he ComE1 i ttees fo rme d : -

For Associ ated H.an o.ba.:; Ino.ust r i e'-" of Ame rica , Inc . 

A. I,·ri t t en thal , Cha irmc:m 

M. R. I3 i e r:. nerl 

H. Schoenfi eld 

u. I mmerman 

!VI . s. o s e sson 

1\i . Gr een be.:um 

s. llu tterJ! e rl 

'-

l 'l. . i. a~~ d 

s. ?.. . Gol c,sJl'li t h 

c. r..;oss 

For I ndustri a l Counc i 1 of Lea t h er Good.s ~anuf ct in , Inc. 

I. Sch1.-'enho l z 

M. Lef cort 

iii . -:e j.nma n 

J. i<i chel 

For Miduest Han(:_bo ~ e nd Sme.ll Lec?.t i.l8r ~"' ar es:\ Associ':l.t i on, I n c. 

Samu el Ma lo1;r 

Zdl!. M. Lu c e 

For Nati ona l A~so ci ti on of I Jl'l ite.t i on a n d Le£'/che j:' liO\re l ti e s 

(The r e i s c or.fusi on in r e co rd s as t o c orrect £~.me of t h is 

As soci ati on , some times it is r efe rre e to as he r e g i v en , 

s omet i mes as ~ra ion l Assoc i ation of T-Iand Bag Lonu f a ctu rers .) 

Hyman Burst e in 

Irving 1-.'Iey-e r s 

urr a~.r J.e snick 

Samue l ~-1. . Go ldc::;mi t h 

I sidor . Sch l esi ng er 

Sol Liutt e rpe rl 

For Ha re ill 3 eaci.ecl. Bag Association 

Cr e st Sccnnitiles 

9811 
-21-

' B. FP.Oi> i SUBJ:I ~SION OF FIRST D~:'T CODE TO PUBLIC IIEA::tiNG 

1. .3rief S1.unmary of Conferences a nd :t!e,e:oti a tions 

Cor1.stant refe r en ce i s found in tJ.1e .:;enerc::.l fi 1.e s, Volu."!le A and the 

trc>nscrirt q·f the first hae>ring a s to confe r enc es, uro-po se d and h e l d , 

both in the ~everal months roc ee din , and follouing the first hearin&, 

but no record of tl1e sa a: e to be found in the file s . . Fei ther is there 

any record of the m'--21'' OJ~ nc s hel c~ by nd v for I am told tha t 

because of the bitt e rness of th-:; fit;htin:; it '.· as not deemed politic to 

kee:p such. 

In the lit;ht of my o·.•n 'mo···le<ise it is hor eve ;_~ not d ifficult to 

piece tog ether tha hap-r:JenL1g s of that tir1e and to a t least form an idea 

of t h e :o rinciu al o~ nts at issue . 

It uas .:~ int a i ned. by the rna j or di f. sen th:g :;roup (f a ti onal Association of Ladies Tiendb.? t.; M-:> mlfP.cture rs) that t h e ~o or.sors of the first code 

craft submit ted. :·ere not r e)resent.?.ti ve, therefore it foll.o'.7ed their 

vie;·.rs '-rere not as souncl. an C:. constructive as t hey sho,J.lc1 and mi ght have 

b een. Thir it ~~ s felt, nas po rticularl7 the ca s e uith resu ect to classification of rro r kers , nl1i ch Fe·,-, York n an te d , and repre s en ta tion on, a n (! 

method. of s e l e ction of the Coc3 e Authority. 

raturally Fatior..0.l 1 s conclusio~s ( see brief i n.corporatec. in transcrij_)t of ?ublic Hearin·.: , ~)D.~e s 2::38 to 263 inclusive ) lt?d to freouent confer enc e s, corre s:p ondence D.nd teleg ram s , ',;hich l B.st a.re to be found in the 

general files. In a dditi on, Col. Lea 1 s files, Vob..1.m e A, sJ.1oF that me e tir...gs anG_ corres'9ondence •-re re h.e l C. u i th of::"icial R of t h e tional ~et il 

Dry Goods Association · ·ith r es;Ject to the discount and term provisions 

prop osed by inclust ::->r . A .c;lance over the man~r cornnu.nications r e ceived. 

gives an ic'.e <:;. of i7no 1 s 11ho ~ the DepP..rtment Store field, and d.efir.i t e ly 

expresses un a lterable op,Josi tim~ to an r chang es in terms over those in 

existence for some y ears. 

Here as i n other ino.u s tri e s it '.7as a ca s e of 1 e•~r York vs. the re st 

of the country , co·J.plec. n i th a particularly b n d. l l'l"oor situation in ten sified by the mi g r a ti on movement . 

Both labor and manuf[.cturers uere in 1e •.Jre-c.epre s si on days su:!"f ering fron too much financial fat, inability to thinl: clea::l v , and !'efu.sal 

to conside r a nd. finc3. the s ensible a p·Jroach to t :1eir uroblems. Labor, as 

re'9 -resent e <i b y Union Off icials then in :iJo·ne:r, ref used to c3.i scipline the ir 

onn :_Jeo·pl e so t het ran~: and fi l e rnn riot. I n this conn ection it i s int e re Eting to note that, as is often the case it s a small thin ~ t hat 

led to the first J.'Ter:• York rna.;:mfa cturer eavin ~ the I. etro oli tan area . 

This manufacture r comDlainecl to Union of f icj_['.l s U1a t one of his n orlmen 

had. s·9at i11 h is f a c e 8.nd called him un ~) ri r, t a bl e name s. The manufacturer 

naturallv eXl)ecteo. the of fendinr:; •.rorl;:nan o~ -Ll . b e C.i c-: ci :~J lined. Fa iling 

to g et rec.re P.s frorrt t:1e Unior. h 8 c nrr.. c to L1e co;·.cJ:u.si on th2 t ;:le could no 

lon c-er live in he.rmon3r rJi til tne Union a n d. cidec~. to fin o. factory accomodations outsiCe t he ci ~r lirli ts, vin,~ to r. l r-n:ia. Little b'r little 

industry left Hen ':~J~: City , anc. tl1e :~ -pre ~s ion s e t t in,;; in in full fo r ce 

the situation became ~ d. an:~ erousJ · acute. 

9811 
-22- . 

In t he -oeriod i •nner1i e t e l -- p roc eeding the Cor:le , mass p roduction cone 

in and t he c:• verage p::-ice for H.: n.::i ba s had. :fc:.l -1_-en f'·ror:1· ~~2 . 50 and $3 . 00 to 

$1. 00 or le fs . During that time , h .vi n ';: rc 1e6 t -1l<:; ·bottom of com·9etition 

b o.sed u:9on l ab or, inov_ st':''.' be-;:.·n t o <'.f.cl t o L1eir pr ociuc t s, ga ~e s of · one 

so rt or anot he r, a chan-·wter of b<~g ncc osso ri e s loret ofor e foun d only in 

t J.1e :1i:g::1er p rice ranr;es . :·~:~h:.::n.:. st in .r.;; the ran :;e o:!:' -;aC'.ge ts in the domest ic 

mar:<ets, t he re be.::;an a combin c; o~ fore r~ n mar}ce t : c.o that at the be,~ in ing 

of t h0 Code er2. , ino:1stry ';as i n desperC1.te s traits, .tor obviously U1ere 

must be c:ll'J end. to ~ucp a· c om:pet i t ive r;:we. 

Pre- code Conferen ce s nui c~ r deve opec~ t:.le.t i:' e11 York manufactur e r s 

s err i n the Code , a n oppo rt:.mi t;r t o at l e a.st -onr tie.lly even up u i th· out of 

tm·'n inclust::y by r--ri t in,; i n to the ns t::.~ume nt , provisions f or classific a -

ti on, e tc . I n cm-d'e:tenc es t:i th the Aclmini st r 2 ti on i t o .. ev eloped that a lth ou.C?;h classificati on hc..d. be en alloued in c e rtain i nc3_ustries it had b een 

dec l a re o_ as contrary to pi)licy . ~xJ.1 ibit J . ) 

DurinG t;1is ~l eriod l abo r itself i7n..s not id_l e and it t ')o Pas insistent 

upon classi f icC' ti on e n Ci_ at t:1 e rmblic heari ng of J;ec emlJe r 8 , 1933 '9resented 

a comprehen si ve bri ef c ov erin6 t : is. (Se G pa0es 50 to 99 tran scri~t 

Public Hearin.c; of tha t d"tte .) lJatura l ly these a:rc; .1men ts n ere r esented bJr 

manuf c9 c tur ers outside of t he !Te".7 York a rea , hence t:1e f i ghts. Summed uu , 

the mai n ·ooints a t iss·..1.e \7ere 30 hours again st 40 , classi f icati on v s . nonclassification, discounts e.nd r eD re sentation . A.~'; .:l~ ments ~:ere not r eached 

a nd ..t l1e :9 ropo s e d code r-.ren t to public h earini?; an c-:. ci s:p:1teo .. points not even 

t hen settle( . 

9811 
C. PU13L I C HEARIE"GS ON CODE 

1. Dates: maior ne rsonnel: results 

The only ~ublic hearing held took place on 

December 8th, 1930 at the Carlton Hotel, Washington, D. C. 

It was presided over by Dr. Earl Dean Howard, Deputy Administrator, who had as advisors: -

hr. Hax 13erkorlitz , Industrial Advisory Board 

Piss Rose Schneiderman & W. E. Bryann, Labor 

Advisory Board 

·T:r . Fred nuhlein, Consumers Advisory Board 

Mr. J. P. Davis, Division of Research and Planning 

Mr. G. H. Barrenboim, Legal Division. 

and the principal witnesses heard were: -

' r!r. A. · Mi t tenthal, Associated Handbag Industries 

of America 

Mr. I. Schoenholz, Industrial Council of Leather 

Good.s ManUfA.'cturers .. 

r. E. M. Luce, Secretary, Mid,vestern Handb<?-g 

and Small Leather Wares Association 

}:ir. Isadore E. Schlesinger of Schlesinger and 

Krinsky , 270 Broad~ay, New York, Counsel for 

and· r·epresenting National Association of 

Imitation and Leather Novelties. 

t'r. C. A. Ne'\'rton, representing Meeker & Co., 

Joplin, o~ 

Mr. Irving C. Fox and }'r. Samuel W. Reyburn 

repres enting the National Retail Dry Goods 

Association 

Mr. Lewis!Waldman, Couns el for and representing the 

Int ernational Pocke tbook Workers Union 

Affiliated 'Nith A. F. of L. 

~:r. Maurice Magid, Associated Handbag Industries of 

America 

Mr. M. R. Bienen, Industrial Council of Leather 

·Goods Manufacturers. 

Mr. Mittenthal of Associat ed Handbag Industries of America, 

the first withess heard stat ed t hnt his association together with 

the t no affiliated organizations , Industrial Council and }Hdwestern represented about 75% of the entire industry. 

· This figure was disputed ho':'Tever by Hr. Schlesinger, appearing for National Association of Imitation and Leather 

Novelties, basing his figures on the Census report of. 1931. Later 

he incorporated in the recard a brief covering this. (Pages 238 to 

263 transcript Public Hec-.t.ring Decer.1ber 8, 1933). 
-24-

The other Tiitnesses were heard in about the order given and as 

the hearing progressed it became clea r thC~ t the sharp d.ivision evidenced 

in pre-code conferences still existed among the manufacturers themselves, 

between manufacturers nnd labor respecting basic wage s, classification 

homework and hours, further that industry as r epresented from the O:astern 

States fell into two camps·and that in their various meetings had not 

been able to find. a common ground, and still further thF't the only major 

pro~osal upon which there Tias a meeting of minds, insofar as manufacturers 

were concerned, was tho.t of the terms under which industry desired to 

sell goods. 

As stated in the foregoing chapter, labor wanted 30 hours suecified, 

as against 4~ hours proposed by and agreed to by manufacturers (see paragraph 2 page 55 transcript of nublic he8ring, December 8, 1933). The 

argument presented by l_abor was th::tt only by so d.oing could the unemployed 

worl..::e rs be absorbed. I.Ianufacturers on the other hand pointed out that the 

out of town "'!anufacturers at least, accustomed to worl..:: ing 48 to 54 hours 

could not me et such a. demand and live and we re making quite a sacrifice 

as it was. Labor also insisted th.!=! t home "l"'ork be abolished. The urincipal 

group using Homeworlcers, Beaded. l3ag 1~anufacturers, insisted thn t they could 

not ope rate without such orl':ers. Labor insisted. they TTiust have classificat ion. Out of to\Vn industry refused to consid.er this and it was later 

ruled out by the Administration as contrary to nolicy laid do"l'l!n by the 

Policy Board. (Exhibit J.) 

Hanufacturers Darticularly tho se of the East were at odds among 

themselves over reuresentation, since the out of town "'!en felt th8t having 

the bul',. of productil")n t!1ey should ha.ve a majority on the ne~ Code Authori t;y 

This \Vas disDuted by the Associated group, the Drincipal sponsor of the 

code who insisted, that repre sented in the National's figures were a number 

of Associated members. Neither could agree upon this point. (See brief, 

pages 238 to 254 Transcript Public Hearing). 

There was also voiced by l.':r. Ne"l'l! ton, representing : ·eeker Co .• , Joplin, 

.1o., an objection to the proposal covering learners or a:9prentices, and 

pointing out t he ir need for a differential. (Page 27, Transcript Public 

Hearing, December 18, 1933) 

It was also brought sharply out the t the retail world as represented 

by Hessrs. Fox and Reyburn were opnosed to any change in terms. These 

gentlemen gave the Administration to understand thet the discounts at 

pres ent in use had always obtained, should be retained, and the ne"l'l! terms 

would mean advanced prices to the consumer. On the other hand industry 

insisted that the present terms were of but recent origin, that depression 

had been largely resnonsible for them, and th::tt for many years prior, terms 

had been substantially as uroposed in the code. 

(See Exhibit H, which although proDosed long after, states 

the "Selling Terms" case from the viewpoint of industry also 

Transcript of Hearing, pages 134-162.) 

The other trade uractice urovisions were discussed but no serious .. . 

irreconcilable differences developed. 

9811 
- 25-

The hearing closing at 5:35 .p. m. settled none of the major problems' 

presented, all being referred to conferences. 

' . D. FROM PUJ3LIC HEARi irG :ro APPROVAL 

Eight days after the hee.ring, the following letter indicated thAt 

final drafting was to be pl ain sailin.g, for while it VTas admitted there 

~ere still one or t wo important matters in controversy, Mr. Mittenthal 

expressed the belief that all 11e re u retty much in agreement·. It is unfortunate the modifications referred to in this letter cann~t be found 

in the files, but the Administro.tion t s then proposed 11 set up" for the Code 

Authority is to be found on nage 6, part 7, Exhibit A. 

~ r. James Worth , Deputy Administrator, 

National Recovery Administration, 

Conmerce Building , 

~ashington, D. C. 

Dear 11r. Worthy: -

ei"T York, N. Y. 

December 16, 1933. 

After a number of conferences had with the Nat ional Association of Leather 

Handbag Hanufacturers, and other interested parties in our code, I find that 

e are agreed upon practicalJ y everything in the code as it was rewritten 

in your draft of December 12, with these few exceptions. 

We all urgently r equest modif~cations of the folloi"T ing articles, in order 

that they may be clarified and prevent the unscrunulous manufacturer from 

evading the fair trade prac t ice rules. In most articles the add.i tion or 

ommission of even a single word may make the entire trade practice rules 

innocuous, and by requesting theseslignt modifications, we are seeking to 

protect t he interests of all the manufacturers against the chislers. 

I am enclosing a copy of these suggested m0difications with a few comments 

setting forth the reasons for these. Of course, there is a great deal 

more than ! could add to prove the necessity for these change s. 

There still remains the two main controversial matters that cannot be entirely agreed upon, namely the Code Authority, and the classification of 

basic rate~. 

I still feel that the Code Authority as suggested by the administr ation is 

fair to all narties concerned. It is true th8t the Associated Handbag 

Industries of America feels that it should have been accorded more r epresentation, ho ever, they ~ill accept the Code Authority as set up in 

your draft of December 12 as fair and eq1.::.i t abl e , and I see no r eason why 

the National Association of Leather Handbag r1anufacturers, should not do 

the same. 
- 26-

The Industrial Council still clings to the hope tha t clas-sifiqation of 

basic rates can be included in the Code , :OR.rticulRrly since the Hillinery 

Code has just come out '."T ith such classifications. However, L believe 

that if you ill again as9ure them th t it cannot be done, they ~~11 

accep t this as final ... 

I have l oarned thRt the Na.tional Association of Leather Handbag Ha:nufacturers, has objected very strenuousl y to the int eruretation of the Hetropolitan Area, and that t hey are r equesting a change- from . thirty-five- miles 

to fifteen miles from Columbus Circl e . · 

I think this could be ac corded them ,~ithout any s erious objection on the 

part of the other groups. 

r:i th the modifica tions gr an t ed nnd the controversial mutters compromised, 

t he re is nothing' really left in dis-cute and there is nothing further in 

the way of the Code beine, auuroved. 

Very truly yours, 

A. Mittentha l:ARJ 

Unfortunately those hopes were not altogether well founded for on 

December 28 t h , 1933 a t elegram was sent to Hr. A. l'i ttentha:l cal.ling for ·. 

a conference with the Division Ad inistrator on the matter of sell_ing terms 

an.d still l a ter other wires sent cnlling for other conferences~ S'ee' 

following . · 

MR. r.HT TENTH.AL 

COI1l rEIWE 

JCW:G INDUSTRIAL RECOVERY 

4320 

DECEL::BER 28, 1933 

ASSOCIATED HANDBAG INDUSTRIES OF AMERICA INC 

303 FIFTH AVENUE 

NEi.J YORT{ CITY 

·. 

IF CONVENIENT TO YOU 'JILL ARRANGE APPOINTHENT ,_.-;ITH WHITESIDE FOR 

TUESDAY NEXT ':".TEEK BE HA1IDBAG DISCOUNTS HAVE Si'LALL DEL'EGATION ONLY . INCLUDING YOURSELF BURKOWITZ Mm PERI-IAPS orE OTHER PERSON Sr.ASONS GRE'ETHTGS 

9811 

J Ai'IES C WOB.THY ·. 

ASSISTANT DEPUTY ADr.i iNISTRATOR 

DIVIS!ON FOUR 
- 27-

WESTERN UNION 

1933 DEC 29 PM 9 59 

NA 1284 21 1-r:L : NE'7/ YORK NY 29 

DR EARL DEAN HO'JARil :: 

DEPUTY ADI:I NI STRATOR NArn i Ol:AL RSCOVERY 

AD.1INISTRATI ON CO~i i£RC~ BLDG ~.A H: DC 

WILL BE IN :IASHn;GTON 17EDrESDAY FOR APPOI NTJ.:EFT WITH ADI:INISTRATOR 

WHITESIDE PLEASE TELEGRL\.PH HOUR OF APPOI NTI:ENT BERKOWITZ SCHLES I NG 

AND t.·osESSON VI ILL ATT:SND = 

A ~-i ITTENTHAL 

CO JFIBiviATION SHEET 

JCW:G I NDUSTRIAL RECOVERY 

4320 

THE Y.h.TICKAi.. RECOVERY ADt:I r-ISTRATION , COI.11,iERCE BUILDilJG, SENT YOU A TELEGRAM THIS DATE, 01 v;HICH THE FOLLO\.-JNG IS A CORRECT COPY: 

IRA ROSENZWE IG PRES IDEHT 

:iATIONAL ASSN LADIES HANDBAG r •• FRS 

1182 BROADWAY 

NE·;{ YORK CITY 

JANUARY 10 , 1934 

CONFERENCE ON HANDBAG CODE CALLED TEN At I :?B. I DAY ROm1 FORTYTHREE 

TWENTY DEPART; .D~T T COH~1ER E EXPECT TO LAKE FINAL DECISIONS REGARDING 

CONTENTS OF COD-"' IlviPORTANT THAT YOU :BE PRESEHT WIRE REPLY 

SkAE AS ABOVE TO: 

Julius Eichel, 501 7th Ave., N.Y.C. 

Michel R. Bienen, 307 Fifth Ave., N.Y.C. 

Irving Schoenholz, 56 Uest 35th St., N.Y.C. 

Abraham Bittenthal, 1115 Broadway, N.Y.C. 

}1orris Immerman, 30 East 33rd st. I N. Y.C. 

H. Burstein, 325 Fifth Are ., N.Y.C. 

S. R. Goldsmith, 38 \test 32nd St., N.Y .C. 

9811 

JAME S C WORTHY 

ASSISTAI\TT DEPUTY ADMINISTRATOR 
- 28-

. S. ~e els, 30 3 Fifth Ave . , N. Y. C. 

· i 1 ton L e f co r t , 130 .-e s t ~ l s t S t • , ! · Y • C • 

aurice Aa en , 14 . est 2nd St ., N. Y. C. 

H. ·ar g ol in <?.: Co . , 1237 Broetc1.1"1A-J , :~ • Y • C · 

Sol . utt pe ~l , 330 Fif th Ave ., F . Y. C. 

Geo r e 1. e~ rs , 1133 ro ay , ! • Y • C • 

I. Schl e singe r , 270 BroF.Id\'Je.y, ~r C. 

E. :. Luc e , 3 20 r:'est A<l ams St ., hi ca , Ill. 

It . ill be s een th~ t •i th the except i on of t he ·first the re is not any 

indica tion as to the 1Jar ticu1Ft.r phases of tne .co d e llF~ t 1Vere to b e ·discussed. 

Follo ng the s e conferences i t becaTTle 1>::n mm tha t a finished document 

had b een p r eua r ed and , was it ~ ig tur e for immedia tely there ca~e 

in a f l ood of p r ote sts , I quote a few onJ.yi t aken from the files, for all 

a r e p retty much of the same ten().r - opp os ition to r epr e s en t A.tion, terms 

d iscounts and wages. 

POSTAL rELEGRAPH 

N. A 714 384 NL 5 Extra 1934 Feb 9 H i 7 42 

RK JE\7 YORK NY 9 

COLO 'EL ROBERT LEA 

DEPUTY ADIHl ISTRATOR OF INDUSTRY DEPT OF Cm.IH BLDG WASH. DC 

RE CODE COVERI NG LAD IES HA. G IliDUSTR.Y THIS '7IRE TO C01TFIRM TELEPHONIC 

CO VERS '~ OF TODAY STOP 'JE REPRESEUT TirE NATI OUAL ASSOCIATION OF LADIES 

HANDBAG MANUFACTURERS STOP PAP:RS ON :iPILE 7iiLL IND ICATE MEMBERSHIP ETC OF 

THI S ASSOCIAT ION STOP WE UNDERSTA~. D COD~ HAS :BEEN DRAFTED BY DEPUTY AND 

ADVISORS AliD IS ABOUT rro :BE SU:rr.IITrED TQ YOU FOR APPROVAL STOP SINCE 

SUB::ISS I ON OF CODE TO COVER TEIS DU TRY THIS ASSOCIAT I ON HAS· CONTENDED 

Am STI LL CO"!TENDS THAT rHE SPONSORS OF T,IE CODE ARE NOT TRULY REPRESENTATI 

OF I NDUSTRY STOP THE UEl'illERS OF THIS ASSOCI.AT I ON RE F~ SE1\11JI N0.T LESS THAN 

HALF THE VO m~ OF BUSINE ss·_ Ol~ BY THE EHTIRE . Ii'illUSTRY AHD EMPLOY 

C01-Jl)IDERABLY L:OTlli THAN HALF J)F AtL WORKERS ENGAGED THErEIN STOP THE ISSUE 

.. 'I TH RE SPECT TO .t1.EPRESENTA.TI ON HAS BE:;;N TENDERED RIGHT ALONG AND DIRECTLY 

AT THE PUBLI C HEARI NG BUT F...AS NEVER BEEN PASSED UPON AND DE BELIEVE NO 

ADEQUATE I NVEST I GAT I O_J IN THAT DIRECTI ON HAS BE"'3N MADE STOP WE HAVE 

LEARNED BUT ONLY FROi! THE PUJ3LIC PRESS THAT 1]ITHI N THE LAST r.'JEEK CONFERENCES 

HAVE BEE ... J HELD AT ITASHiliGTOlJ RELAT I VE TO rHI S CODE ATTENDED ONLY BY PARTIES 

;D ASSOC IAT I ONS ;.HOSE I NTERZSTS ~ ADVERSE AND IN DIRECT CONFLICT \liTH 

THOSE OF THE t;EI::BERS OF THI S AS SOC IATI ON STOP WE WERE . NOT I l\J'V ITED TO 

PARTICIPAT.w I N THESE co-· EP.E !:~ ES STOP THE EIGHTEEN .DOLLAR . OR FORTYFI VE CE T PER HOUR LINI MUE WAGE. Fl,tOY I SI Ol~ S IN. THE PROPOSED CODE REPRESENT 

THE DEdANDS OF NE'\7 YORK liAlw:fAQTl.JRE.c .S AND THE INTERNAT! ONAL POCKETBOOK 

miL~RS UiHOif .Alffi 7TILL PROVE DESTRUCTI VE TO A LARGE NO'Mll ~R . OF THIS 

ASSOCIATI O ·.:ITH PLANTS LOCATW QUTS II)E OF THE NEW YORK CITY AREA STOP 

THESE . AGE PROVISIONS WERE IlJCORPOAATED 'JITHOUT ANY A.PPJiOPRIATE SURVEY 

OR I .r..STIGATION TO ASCERTAIF W:m:T~;ER OR . NOT. THEY ARE FAIR AND EQ,UI.TABLE 

TO THE OUT OF TOTIN l.!ANUFACTURERS .AF?ECTED THEREBY STOP . THE CO.JTROL OF THE 

COD:S AUTHORITY IS PLACED IN THE HANDS 0 F 1\TE\7 YORK tiA.NUFACTURERS AND THOSE 

9811 
-29-

IN CONTRACTUAL RELATIONSHIP 7iiTH INTERNATIONAL POCKETBOOK "JORKERS UN ION 

'\'iliOSE IN·TERESTS SO FA.R AS LABOR IS CONGER JED ARE IDE~J'l AL AND ADVERSE 

TO TIC OUJl OF TOWN MANU1?ACTlJRE'llS STOP WE WA1TT TO GO ON RSCORD AS OPPOSING 

T~ EIGHTEEN DOLLAl1 OR :B'ORTY-FIVE C"SlJT PER HOUR !1INiliTn.I WAGE PROVISIONS 

CO NTAI ~ffiD I N THE PROPOSED CODE A1~ THE PROPOSED CONSTITUTION OF Th~ CODE 

AUTHORITY ANTI ASK ?OR Fu.ci.THER HEARING WITH F.ESPECT TO THE HATTERS COVERED 

BY THT S TELBGRAil·i 

SCHLESINGER & KJUNSKY 270 B!lOATIViAY 1Lr; YORK CITY 

DAY LETTER 

Colonel Rob e rt Lea 

Deputy Administrator of Industry 

Department of Crnnme rce Building 

Washington, D. C. 

February 10, 1934 

Re Ladies Handbag Code STOP Our wire last night was bas ed on 

telegram received from James C. Worthy Deuuty Administrat~r STOP We 

have just rec eived copy of latest pro:9osed Code STOP In the p revious pro-

-posed Code prepared by the Administra tion the .Ass ociat ed Handbag Ind.ustries 

of America Inc wae g iven a r epr es enta.ti on of three members on the Code 

Authority STOP The In&ustrial Council of America one and the National 

Associati on of Laciies qandbag }~anufacturers three STOP Even to this apportionT!lent we objected ar..d -:1. 01" we find that 'Pi thout our cons ent without 

notice to us and 111• i thout being h eard. with respect thereto the proposed 

Code forward.ed to us allots to the Associated Handbag Industries of America 

five representnti ves anc_ to the Industrial Council of America t 1JITO and to 

the Associa.tion that we represent also two although the members of this 

Association do at l P-ast one half t h e vo1ume of business of the entire indus try and liTe emp loy more tha n one ha lf the 'I'ITorl'::e rs ga~e d STOP 'llfTe 

again ask that all definite action F ith r r.;spe ct to this Code b e p ostp oned 

until the members of the N'ational Association of Ladies Handbag Hanufacturers have been afforded a further opportunity to be ful1y heard 

9811 

SCHLESINGER & KRINSKY 

Attorneys for National Association 

of Ladies Handbae Manufacturers 
- 30-

GOLDS! :I TH :BROTFfEH.S 

Hr-mufacture rs of JJn cl.ies 1 Rand :En.gs 

38- 40 West 32nd Street 

Je·:r York City 

rational Re cove ry Administrn.tion, 

Colonel Robert Lea, 

Deputy Administrator of Industry , 

De~artme nt of Com~e rc e nuilding, 

ryashington, D. C. 

Dear Colonel Lea; 

? ebruary 14, 1934. 

We wi sh to enter with you our p i7otest against the Code of Fa ir 

Comne tition for the Ladies' Handbag Industry , as sub~itted to you in 

·. 

i t s Dres ent for!ll, in viery of the fact thn.t the Code as ,.vri tten is beneficial to the certain f el'"' of the 1~ew York manufacturers~ 

We b<:J.se our orotest on the follo•"'inP.; , nnd r.rh ich ~e ho-oe and. have 

no doubt : that in view of 7 0ur ~. irnes s will gi~re it every considerB.tion: 

Statistics ill confirm our cont enti nn tha t seventy ue rcent of the 

handbags ma.nufactured in the Uni ed Str.tes a re n ade outside of Ne"" York, 

and only a small por tion of ha,.'1. 1. n.~ s a r e made in NewY0 r k City, no.mel r, 

t he high style and h i gh priced be1.es , '~'~The e a f ew dollars a r1e ek: more .to 

an employee does not hurt t ne p rice of t he unit in any ·way. The manuf ac ture rs, who are in Yen; Yor -:: must have sk ill ed help vrr ith many years 

exoe rience in o~d r to manufacture their lines. Today, out-of-town 

rr1anufacturers find it very clifficul t to CO!!roe t e with Few York manufacturer s making the s~:~me t~e of r1.erchandi se, due to the increase in wages 

made by the out-of-tmvn manufacturers, namely, about 0~ , which is ma.de 

up in tho short ening of hours and the minimum scal e und0r ~hi ch the £rnA 

:9ermi ts· you to o.pe ra te . 

Wo we r e obliged, i n orde r to coouo rat c with the President's Emergency 

l:ec1sur os, to advance our h el p nho we re r e ce i v ing 8. 00 and. 39.00 a week 

to $1 2. 0(' per we ok, and thos e getting $12. C'O pe r we d<: and ovGr were advanced proportionat ely, as also thoir hours of labor shortened to conform 

i"Ti th the .r • R. A. t hereby ado .. ing many addit i onal hel p to our payroll. 

Wo es ti ::~ato that the out-of-tor'n manufactur e rs employ approximately 

10 , OOG wo r ke rs \7hc r eas t he Nol'• York manufactur e rs employ a pproximat ely 

2 , 000 . 

9811 
-31-

The out-of-tovm manuf~cturers must continually e~ch new help 

the art of Making bags, the1·eby incurring tremendous expense to the 

manufacturer, and the lTe? York manufacturers, a ccording to the code 

submitted to you, ask you to h~ve us pay the same amount to our employees, who , a s stat ed above, must be taught the business from the 

beginning as against the r:Tev· York Manufacturers' employees who have 

a number of yea rs of ex,.Jerience, a s the Union menbership in Uew York 

has been closed mRny years f or learners. 

We are emolo ~r ing in our ·olant approximately five hundred 

people. Would it be, and \vould we be justified in shutting down 

our plant and the five h1U1dred families supuorted thereby become 

public charges in order to satisfy a very small percen~age of the 

industry? 

If the code is adopted in its present form, we v:ill have 

no other alterna tive tha n to move our plant back to New York, which 

we might mention (is t he · sole object o.f the New York Union) thereby 

ruining the thousands of frunilies dependent upon the out-of-town 

handbag manufacturers. 

To the cost of the out-of-town manufacturers' labor must be 

added the tremendous expense involved in breaking in new help. The 

tremendous e:JC?ense involved in the continual travel of their Designing Staffs to the Nev, York market. Trucking expenses add materially to the cost of our manufacturing (and at the same time 

give employment to hundreds of people. Our office personnel is 

double that of our New York manufacturers due to the many details 

necessary for out-of-town manufacturers and which also adds hundreds 

of people to our payroll. ~1d, the many other incidental items 

which add agreatly to the cost of manufacturing out of the New York 

market. 

In conclusion, we ?..gain 11 ish to voice our urotest of the Code 

in its present form, and as above stated, th~t if the Code is signed 

as it is now Tiritten, bags will not be able to be manufactured outof-town and manufacturers nill be oblie;ed, in order to profitably 

compete with New York manufacturers, move their plants ba ck to New 

)fork, or else go out of business entirely, as the Hew York market 

does not have enough skilled labor to tru{e care of the entire industry and learners have not been permitted in the Union for several years. 

Yours very truly 

GOLDSI.HTH BROTHERS 

MAlfUFACTURING CO., INC. 

P.S. -Whereas we no~ employ ove r five hundred in our plant, if 

we were to move back to Nen York we would only need approximately 

two hundred to produce the sane amount of LL~its. 

9811 
-32-

WESTERN UNION 

19.34 FEB 15 PM 10 18 

CC1375 50 NL - WAUKESHA WIS 15 

COL ROBERT LEA -

LEATHER DUPUTY ADMINISTRATOR UASH DC -

VERY MUCH OPPOSED TO CONTROL OF HANDBAG INDUSTRY BEING 

I NVESTED IN HAND OF ONLY UNIONIZED MANUFACTURERS IN 

NEIV YORK STOP DUE TO GREAT DIFFERENCES IN CLASSES OF 

LABOR BET\r.EEN NEW YORK AND MID\VEST A HOVE OF THIS KIND 

·,mULD FORCE US TO DISCONTINUE OPERATION STOP viE PLEAD 

FOR CONSIDERATION OF THESE CONDITIONSh~STERCRAFT LEATB~~ GOODS INC. 

POSTAL TELEGRAPH 

WJ348 DL 5 EXTRA.-RK NE':l YOP.K NY 21 219P 

GEN HUGH S JOHNSON 

DEPT OF COMMERCE BLDG -

1934 UAR 21 PH 3 27 

RE LADIES HANDBAG CODE STOP THIS 'ASSOCIATION AT A 

~.1EET ING LAST NIGHT ADOPTED A RESOLUTION EXPRESSING ITS 

:DISAPPROVAL OF THE PROVISIONS OF THE CODE ·,nTH RESPECT 

TO THE CODE AUTHORITY STOP IT IS THE OPINION OF THIS 

ASSOCIATION THAT THE HATTER OF ?PRESENTATION OF THE 

CODE AUTHORITY HAS NOT BEE:N DISPOSED OF OJ'T AN.EQUITAELE 

BASIS AND THAT 'rHE QUESTION AS TO llHETHER THE. SPONSORS ARE 

TRULY REPRESENTATIVE OF THE INDUSTRY HAS UEVER :SEEN 

ADEQUATELY IrNESTIGATED TO ~JSTIFY THE CODE PROVISIONS . . 

STOP 11JE HAVE CONTENDED SINCE THE SU5MISSION OF Th"'E .CO:DE THAT 

THE SPONSORS ARE NOT REPRESENTATIVE OF THE INJJUST~Y 

AS THE PAPERS ON FILE 1fiLL INDICATE 'STOP IT IS 

OUR \fi SH TO COOPERATE 1.iiTH THE ·.A.DLHNISTRATION :BUT '.JE 

FEEL THAT NEITHER THE SPIRIT NOR THE LETTER OF THE ?.]]• 

COVERY ACT HAS :SEEN FOLLOWED I N CONlillCTION \liTH THE :DESIGNATION OF THE CODE AUTHORITY AND RESPECTFULLY ASK 

FOR AN IMHEDIATE H$ARING OF THIS MATTER AT ·.!RICH ALL 

INTERESTED PARTIES 1,1AY SUBMIT FACTS AND FIGUF.]]S PRIOR TO 

THE EFFECTIVE DATE OF THE CODE -

THE NAT IONAL ASSOCIATION OF LADIES HANJJBAG MANUFACTURERS 

270 BROAD\vAY NE\i YORK 'C1TY. 

9811 
Miss Frances H. Robinson 

- 33-

NIGHTLETTER 

c/o General Hugh S. Johnson 

Department of ComMerce Building 

W~shington, D.C. 

Febru~ry 8, 1934 

AS FOillilER LIEUTE.TANT COLONEL AGD UNDER HCCAIN AND HAlliUS 

I RESPECTFULLY P3Q:tJEST T~ FOLLO,.!IlJG UESSAGE 3E DELIVERED 

WITHOUT DELAY TO GElJERAL JO!iJ.JSOfJ QUOTE R~TAII2;RS CAN HOT : 

KEEP PRICES DO\ffi ON LADIES IDUJDBAGS AS YOU B2SEECHED 

THEH AT OUR COlJVENTION IF YOU 1JN',iiTTINGLY COUDOlTE A 

NEEDLESS HIDDEN ICE INCREASE BY APP~OVING A CODE ~r~ICH 

IS INTENDED TO EXACT A PROFIT OF T·.lo HILLIOfT DOL~A.B.S :?ROM 

CONSUNERS IN A FORTY MILLION VO:GUHE INDUSTRY THROUGH A 

REDUCTION IN THE P:P.EVAI1ING CASH DISCOUNT OF EHmT 

PERCENT TO THREE PERCENT SINCE THE CO:JE PROPONEIJTS RA.VE 

lOT AGREED TO A COUPEIJSATIHG REDUCTION LJ ,,ffiOLESALE PRICES 

OF THEIR PRODUCT STOP IF CODE MUST BE .APPROVED :S.ECOI 'll ;END 

A S~AY OF DISCOUNT PROVISION UNTIL CO!.-!HITTEE 0::!' PRO!iiNENT 

RETAILERS CONSISTING OF MESSRS nOTi:iSCI!ILD STRAUS REYBURN 

J.HTTEN PRIDDAY AND OTHERS CAN PRESENT TO YOU OR YOUR 

APPOINTEE FACTS THAT ·.IE BELIEVE \JILL FULLY JUSTIFY OUR 

OPPOSITION TO PRBSENT LO"\f DISCOUNT PROVISION STOP 

·miTESIDES RbCE1JT IFTEPl'AEDIATE REPORT TO YOU ON CAUSES 

OF NEF.:OLESS ID:TAIL P:::ICE L.JCREASES J:IENTIO:JS REDUCTION OF 

PREVAI 1ING CASH DI SCOID TS AS ONE OF THE D1POP.TANT FACTORS 

UNQUOTE 

Mr. Irving C. Fox 

P. J. :leilly 

Member , Retailers' Protective Committee 

National Retail Dry Goods Association 

February 12, 1934 

National Retail Dry Goods Association 

225 West .34th Street 

New York, rT. Y • . · 

Dear Ar. Fox: 

This letter is in reply ~o yours of February 7, to Gener~l 

Hugh S. Johnson. 

The Code for the Lhdies Handbag Industry has already 

been recommended by me·to the Administrator for annroval. 

As you already know , at the time of the He2:ring , provisions standardizing the discount at 3/10 EOl.I received .very 

thorough consideration. 

9811 
-34-

Moreover, a joint commit tee of ~n~iacturers and 

retailers under the chairmanship of Mr. Reyburn was 

a~pointed but unfortunately they were unable to come to 

an agreement. 

In order to break a deadlock which had existed· fqr • · 

several weeks, I authorized the Deputy to proceed in_ 

drafting a Code which would be satisfactory to. the· manu- · 

f acturers and which would contain the discount provisio~ 

of 3/10 EOM. 

The action taken in the drafting of this Code seemed: 

necessary if they were to have a ·Code at all • . 

Yours very truly 

A. D. Whites ide,. 

Division Administr~tor. -

INGBER & CONWAlf¥ 

1·1A1TUFACTURERS OF 

..,. . . ! 

.• .. 

(· 

FABRIC HAND :BAGS · · -, 

-. . - . 1307-09-11 Market Street 

Philadelphia, Pa. 

February 12, 1934 .. 

National Recovery Administration, 

Colonel Robert Lea, 

Deputy Administrator of Industry, 

Department of Commerce Building, 

Washington, D.C. 

Dear Colonel Lea: 

We received unofficial information that the Government . . ( 

is about to present a Code for the Ladies 1 Handbag Industry, 

in Phich there will be a-'11. $18.00 minimum. We wish to 1 

protest against the inclusion of this paragraph in the Code 

for the following reason, which we believe applies to ev?rY . 

manufacturer outside of New York City: 

All manufacturers.·, outside of· New York, · are handicapped 

in competing with the New York manufacturers. · To ·begin 

with, we do not have the :;>killed_ help that they have. Most 

all mechanics 'in New Y~rk hay~ been ih :this Industry at least_ 

five or six years. The main reas·on being that th~ International 

9811 
-35-

Pocketbook Union, with whom the New York Manufacturers a re 

in contraction, does not permit them to take on any new 

help. For the last fe '! years, there has been an over 

supuly of help in this trade, due to the depression. Besides that, ~e a re compe lled to buy our goods in New York, as 

that is the market ul ace., and maintain an office in Nerv York 

for the sale of goods, as b~rers rvill not go outside of New 

York to purchase. To maintain a New York office, and. ship 

everything to Ne~ York City 8nd East of New York ureuaid to 

New York, also ent A.ils an emense. Coupling this with the 

average out of to m help, which is usually not as skilled as 

New York, ear~ at -a disadvantage. 

Besides, New York City has what is knonn a s a Clearing 

Hause for n•orkers. When they need te.n extra frame rs for 

a day, they can phone to the .local office , and this is don6 

for any other department. ime reas when they t ake hel~ out 

of town, ~d lay t hem off when they don't need t hem , they 

thereby stand a chanc e of losing them, because they usually 

drift into another tr r~.de . It therefore neans tha t ·o:r the 

time we weed additiona l helu, we have to sta rt tra ining 

t hem again. 

To avoid this, we try to keep them on. If a f ramer 

ha s no work, we give h im some thing else to do, and do 

likewise in an ' other depo- rtment. This is how we manage 

to keep them, although the re is a loss in doing so. 

For exruJple, this is what happened to our Company: 

During the latter part of AQgust, and the early part of 

September, we had a strike, when we brought in some new 

people, paying them the minimum wage. They have only been 

in our employ now for aoout six months. The National 

Labor Board, who was instruMental in settling the strike, 

asked us to make all emnloyees back, which we did. Sufficient 

proof can be furnished t llP..t we are not di scrimina t in1; , and are 

dividing the work as evenly as possible betn.een the e~erienced and inexperienced help. \ie be lieve this is what the 

Government wants. To keep everybody busy inst ead of a full 

week to some an~ nothing to others. 

From the above f acts, you can readily understand that 

if an $18.00 mininum is nut into the Code, we will probabl y 

be forced to shut down. or else eliminat e all inexPerienced 

workers. We know the Governme nt do e s not have this purpose 

in mind, a s it would !"lean so many more ueo1Jle to resort to 

charity. Therefore, we · protest against the insertion of this 

clause in the Code, and as mentioned before, we ·be lieve that 

if it should be enforced, 'Ye would have to close the p lant 

and move to New York, where it will be nossi.ble to do 

business under the Code. 

Now what is to hapuen to the ueoule in Philade l uhia? . ' 

Our comuany is employing about t wo hundred to t wo hulldred and 

9811 
- 36-

ten peoule , and the rest of the Industry in Philadelphia is employing 

about o:ne hundred and seventy-five. Con sid~ ring the families dependent 

on these People ' s Tiages , it Tioul d n e ce ssitate about twelve hundred 

additional p eople going to the Rel i ef Board. 

Tile a:i. e aTiai ting advice nhether or not Srou 11ill have a meeting in 

~ashin ton on ~ednesday or Thursday of this ncek. If so, ":'Te expect 

to be there to lodge our protest in person. 

\le hope it nill hot be necessary to put this Industry in Philadelphia 

out of business. 

Yours ver.J truly, 

GB~R & COMPANY 

(Signed) D. A. IHGBER, President 

WESTERN UNION 

(02) 

KA 423 101 NL 1 EXTRA. - JOPLIN !viO 14 

GEl ERAL HUGH S. JOIDJSON -

NRA AH.iiNISTRATOR WASH D C -

THE LADIES H.AliD BAG CODE rtECEl\TTLY PLACED IN YOUR HAl~DS FOR APPROVAL 

IS VERY UlJFAIR TO US AS A Slv!.ALL TOWN H.AliJUFACTURER IT CONTAINS NO WAGE 

DIFFE:?.El{TIAL AND LITTLE CONSIDERATION FOR 'il-IE ACTUAL COIJDITIONS SURROUNDING 

US AS AN ISOLATED MANUFACTURER WONT YOU BEFORE DECIDING ON THIS COJ:E PLEAsE 

REVIEW OUR BRI EFS .Alill CORRESPONDENCE IN THE FILES OF DR. HOTIARD AND UR J C 

WORT".tfY ASSISTANT DEPUTY AD!IIIlTISTRATOR WE El-:IPLOY ONE HU1JDBED FIFTY TQ THREE 

HUNDRED PEOPLE w.tlO WILL i3E iJI T'"iiOUT EMPLOYf,iENT IlP IJE ARE FORCED OUT OF 

BUSINESS TIHICH IS AllAOST SURE IF CODE AS NOW URITTEN IS PUT THROUGH. 

THE l1,IEEKER CO hiP ANY I NC 

C l.:EEKER PRES 

WESTERN UNION 

VP 138 5 1 XU - PV lJEW YORK NY 14 526P 

HUGH S JOHNSON , ADMilH STRATOR 

CABE OF - ISS ROBIN SON DEPT OF COMIIERCE 

COREY l..E:2KER OHE OF OUR HI SSOURI Li.AN'UI'ACTURERS WILL BE GREATLY INJURED BY 

NO ITAGE DIFFERENTIAL HAND BAG CODE HE HAS SUBMITTED BRIEF TO HOWARD IDT 

HAS 0 -.70RD 3EGAillHEG IT STOP APPRECIA'rE GREATLY IF YOU WILL HAVE SOMEO:N'E 

WIRE !ili LAI.:B:CRT COi,IP.AlJY TWO FIFTY P.ABK AVElJUE NEW YORK WF.AT STEPS CAN BE 

TAKEN -

RO BERT L. LUND ( 03) 

9811 
-37-

WESTERlJ UNION 

1934 FEJ3 15 PM 6 11 

604 135 NL 5 EXTRA - MIANI F1A 15 

COLONEL ROBERT LEA DEPU:rY AU1INISTR!iTOR INDUSTRYWASH D CINFORMATIOH LEADS US TO BELIEVE FOURTEEN DOLLAR T.~INI Hill.i WAGE FOR UIITATION 

LEAT"HER WORF..ERS EtiiNENT STOP iJE ARE OPPOSED TO THAT I.I INIIvim,I AS IT MEANS 

IMf.:EDIATE CLOSING OF OUR PLANT El.IPLOYING APPROXIMATELY HUNDRED PEOPLE STOP 

NINETY PERC:ciTT OUR i70RKZRS INEXPERIENCED .AHD IF T"rU S CODE IS ADOPTED IT 11ILL 

POSTIVELY ·:rEROV1 TEEI:I ALL OUT OF TIORK IN FACT OUR DIRECTORS HAVE SERIOUSLY 

CONSIDERED CLOSING THE PLANT AS TIE C.A.HJ:TOT l.WJUFACTURE OUR l·trERCHANDISE 

ON PROFITABLE BASIS UNDER PRESEHT NRA CODE STOP EHPLOYEES VIORK ING IN 

OUR PL.AlJT .AP.E \TELL AEL:-b TO SUSTAIN THELSEL VES .AlTD ARE TREl.iENDOUSLY TH.A.NKFUL 

FOR OPPOP..TUNITY TO BE ABLE TO DO SO STOP PRESEl;T CODE UAY AlJD ADOPTION 

OF FOURTEEN DOLLAR IINILT.Jl..i UILL I1i.A.XC IT CONCLUSIVELY IJECESSARY FOR OUR 

PLANT :ro CLOSE .AlJD MANY OT".ti.E::tS THROUGHOUT THE COUNTRY LOCATED GEOGRAPHICALLY SHtiLA...".i. -

HARRY I MAGID VICE PRES STYLE CRAFT BAG CO INC 

HERZ AND KORY 

Makers of -

LITTLELADY CHILDREN'S & l\liSSES' I3AGS 

Colonel Robert Lea 

Dear Sir 

230 Pine Street 

WILLIAMSPORT , PA 

February 16, 1934 

We have just been informed that the ladies handbag code contains 

a minimum ~age proposal of 18 per ueek and wish to say that if same is 

adopte9- Tiill necessitate our removal to New York City, as ne would be 

unable to compete , consideri n~ all other di sad vantages and extra e:x-

:penses. 

Yours resp. 

HERZ AND COl iP ANY 

9811 
J E'nUC'.r v 3 , 1934 De 'JUty Larl Dea:1 Bortarc.L vrri t L1,.; the: followL1c; 

mcmorr>.ndum to Divisior. Acill!L :istra tor A. D. lihitesidc was evidently 

inclL1cd to ~~roe \'T i L 1 t wo of his ad·ri. sors thr.t the me.j ori t y fact ion 

shoul ·i mee t with the Ac1nini s trator and. uri t B [1.. Co de based U110n t he 

Divisi on A~ istrator s ul t imatrun viz : 

A wabe minimum :1ot _to exc eed ( $18) eighteel1 clollArs ·1er week a!ld. a 

discount ·-1 rovi si on of 3· '• 

1-3- 34: 

tir. A. D. Vlhi teside 

Earl Dea:: Howard 

tfessr s . ill m2.: ~ -~ d Jur.l:owi t z , Labor EJ.i.1cl I:ttdustrial 

Advi sers, res ec ti vel , l t lw ·i' adb t; Code 112ve :'1 et it i oned 

me L the m~tt r of the dea.d.lock on tha t c ode . 

TheJr are co:;wi .:ced tha t t he a t t em·1t to ,, et <m asr eement be tV'Jeen the tv•o cti ;:~s i n the i ndustry has en ti re r 

f o.il eci si::1ce the l c::t.st 'Jro·)osit i o:·_ t o arb itra te their 

differe:·. ceR has b e en n>fus.cd b y the i~Qri ty. 

The~r ther e f Jr c re cm:I. 1e::cl thn.t we m.lthori ze the ma jort~- L•.ction , co :t1s isti. ~::.:o of o.t l east vent~ fi ve 1)er cent 

of t he L:d st r, to ,,1ee t with t he De:·mt ;y a11d .r.dvi s ers and 

form'.ll ate f'. caC.e on the b'o.si s of y our 'J.l tilila tum ~o them, 

na,11ely: t wo a~ e i:!Lli ma not to exceed ei ~i tee n d oll2.rs 

·Jer 'Neek u.nd discou·l t ·1:-.t:ovisio : o/ t hree ·1er c ent • 

. tr . ill rOr::. ~·;, i s :.1 ot atisfie ~..~ with the wa'""e O.!ld hour 

~1 rovi io :1s of the c ode sub,, i t ted by the rr1ajori t y , but there 

is no douht thc·.t the se lliffer ej1ces can be r e c o:.1 c i l ed i f we 

hold. the co~1feren e 1:lhi ch t he:r rec ommend . This woul d involve 

a decisio;.1 on your :··a:c t t o n_, 1r ove a code ac;ainst which there 

was a minority o·y1os i t i o:-:1 of ,,robab l y twenty-five pe:c cent. 

Ecxl Dea~·l Howar d 

De·mty AcL-:1L1istre.tor 

On thi s memorc:,ndum a r _ t o oe .L'ound. q'.lesti o!.1 mart:s agc.:.inst 

t he f i bures quoted in the second li e of t hird ·1ara~ra~h and the 

l a st two lines of the 1< st ~ar a.G:.·ct . At the b ottom is a l so a :1 enciled OK 

9811 
- 39-

presumably m:=tde by the Division Administrator, A. D. .1liteside, and 

in vie~ of the conflicting cla ims mnde by the Trade Associ:=ttion 

one C -8.1! well understand his doubt of F.t.ccura.cy of statements. 

All of that month and through February and Ma rch, the battle 

raged and sporadic refe renc es :=tre to be found in the general files 

to nee tine s it h the Division Administra tor, t he Deputy , the representatives of t he Labo r Advisory :Bo:=trd and Colonel Lea . Following what appeared to h<we been the rule , insofP.r :=ts this Code 

WP,s conc erned, no r ecord rp, s made of these coni'erences but from wan t 

I r e c.J.ll it seemed a s if each f a ct ion was ~3 t ermi ned to rule or 

ruin, and could not or would not agree on the disputed points. 

A comparison of the draft submitted a t the hearing (see page s 

270 to 285 transcript of Pu-blic Hearing) with t he approved code 

g ives light upon what must have been the subject matter of the 

various meeting s. I auote in t he fol 1.owing the maj.or points at 

issue: 

Proposed Code: Article II - Definitions not sufficiently 

cle r, and without reservation, all embracing. 

Approved Code: Article II - Definition clarified more specific . 

Prouosed Code: Article III - 40 hours in any one week and 

not in excess of 8 in any 24 hour period 

for f a ctory and office help. 

Approved Code: Article III - 40 hours per week except thRt shipping , 

clerical or office forces we re to average 48 hours 

over a monthly period. 

Proposed Code : Article IV - 35~ per hour for greater New 

York, 30t outside New York area. 

APproved Code: Article IV - A flat 35¢ r a te per hour. 

Prouosed Code: Semi-skilled not urovided for. 

Approved Cocie: Provides for semi-skilled a t 5~ per hour rate. 

(Stayed in order of approval) . 

Prouosed Code : Leaners to be paid not less than 80c.6 of 

minimum wage s and must not exceed 15% of 

total number of emp loyees • . 

Approved Code: The Administrator may under exceptional circumstances permit employment of learners. 

Prouosed Code: Classifica tion None. 

Approved Code: Section 6 provides tha t uuon r e commendation by the 

Code Authority and after full study the Administrator 

9811 
-40-

mr-ty establish bRsic ra.tes for the more 

skilled classes of employees. 

Pronosed. Code: Article VI - Administration provides 

Code Authority of eleven (!1) to be 

selected by various associations. 

Approved Code: A~ticle VI - Administration provides eleven 

(11) selected from industry: 

5 by Associated 

2 by National Associ tion 

2 by Industrial Council 

1 by Hidwest Association 

~PY .. Pacific~ Coa !'t: .Manufacturer,s 

1 by Labor Advisory Board. 

Trade Practic·e Provisions were essentially the same • 

. 

It will be noted that the T~Tage ·provisions a:ou roved were a corapromise and as already st a ted became a fester spot and provocative of 

great dissension and widened the rift between abo r and raru1ufacturer. 

It will also be noted that r epresentat ion urov~ded in Article 

VI of approved code is auite different f rom the one contained in draft 

used at the public hearing and revised immedi a tely thereafter (Exhibit 

A, part 7, page 6; part 8, page 4.) 

The Code wr.s ap·oroved by the various :Boards without coJTJ.men t 

except that of Research and Planning. Mr. James P. Davis of that 

Board pointed out that since the establishment of classified wage 

scales under codes is contrary' to Administration policy it would seem 

wise to eliminate this provision. ' 

He further points out that the discolint provlslon might be the 

ca~se of much criticism unless it conforms closely with the well established practice oft he industry. 

(See Exhibit E pc=tragraph "Comments Section 2", Section 12) 

It was forwarded by Deputy Earl Dean Howard r.iarch 5, 1934 

to the Administrc=ttor for his approval. 

9811 

3. Date of Approval 

The Code was approved March 14, 1934 under Administrr:.tive C)rder 332-1 and became effective under Article 

x:r I of the Code on the second Monday after approval by 

t he President_. 

4. Conditions in Order of Apuroval: Industry Reaction 

The Order of Approval provided: 

"1. 'That Section 2 of Article IV be stayed until 
- 41-

such time as the Code Authority shall nresent to 

the Administrator a definition of the term ' semiskilled employee', 17hich received the approval of 

the Administrator." 

The o subjects, semi-skilled and cla ssif icntion while 

treated in t he Co de a s separ Pte and dist inct matters, semiskilled in Section 2 and classificRtion in Section 6 of 

Article IV a~~rove d code, are in effect nart and parcel of 

each other. 

There is no document a r y evidence in .the fil.es whi ch 

indicates when Section 2 of Article IV ~R s written into the 

anproved Code. Cert:tinly it .was not in the various su·bmitted drafts or a subject of discussion at the Public 

Hearing, although referred to . by indust!"y in the Pub lic 

Hearing. (See ages 191-1~6 Transcript of Hearing, December 8, 1933.) 

However in the drafts of Noveober and December there 

appears a nrovision for basic wages. (See Exhibit A, part 5, 

paragraph 5, page 3; part 6,para ra~h 5, page 3; part 7, 

paragraph 5, page 3; part 8, paragraph 5v page 2. 

Since labor was so insistent that classification be 

included in the wage nrovisions (See Transcript first 

Hearing, Decer.1ber 8, 1933 pages 61-65) and since the nonunionized portion of industry who did not classify their 

workers as is done in union agreements, following the section system, (nage 3, paragranh 1 Appendix G) seriously 

objected to its inclusion in the Code, and further that an 

examination of Union Agreement$ contained in Volume A and 

a reference to the statement of the Code . Authority Labor 

member dealing with this subject (See Exhibit K, page 10) 

discloses th<'.t the term "semi-skilled:" does not appear to 

have been used .in the industry but instead shows the use of 

the term "Seco.!ld cla ss helpers", it is reasonable to suppose that the Administratio.n injected this clause as a compromise measure, providing however tha t the provision be 

stayed until the Code Authority should present an acceptable definition. 

To su~port this conclusion is a statement by Code 

Director liittenthal made to the writer Sep tembe r 11th, 

1935 tha t since industry could not agree upon classification- Ne~ York wanting and out-of-~own opposed to ius inclusion, the subject WHS referred by the Deputy, Dr. Earl 

D. Howard, to Hr, Sidney Hillman of the Labor Advisory 

:Board. He told manufacturers, so· t'he Director stRt es, tha t 

he offered this clause and industry had better accede to 

i·t or suffer a worse fate by hr-l.ving a code imnosed upon 

them by the Administra tor. 

The Director further states. thnt Colonel Lea onnosed 

9Rll 
9811 

- 42-

its inclusion on the ground th::tt such a clause could not 

• be defined, satisfactoriiy at least , R~d o~ld lead to 

endless trouble. Colone l Lea was eventually won over hence 

it found ul ace in the ~age u rovisions. 

Could one s foresight been as good a s hindsight , the 

provision never would h2ve been made for it led, · as stated 

in the nrevi ou s chant er, to endless discussion and friction 

between the rnc:L'1Ufactur ers tnei!lse l ves, nd made wider the 

existing rift between l abor and industry . 

It was and is now my firm be lief thRt it is impossible 

to justly deternine where the line should f a ll as bet een 

~kille d and semi-skilled. 

\wen months after it was made t he subject of public 

hearings June to July 1904 , (See Transcript of such), the 

Assist&'1t :Deuuty David :S2.rr and the Division Administrator 

Sol Rosenblatt finding t hn t no one could agree, drew an 

order setting. up a comi!lission to study the industry (the 

ex-oense to be borne by inc.u s t r y) and make a finding . (See 

Exhibit K, pae;es 22 t'o 25) . Since industry would not consent this order \ra s ho .eve r never consumi!lated. 

Prouo sals we r e then de by the Administrator to 

vacate the st r in t he o;:de r of apnr0va l and to amend the 

section by deleting the t e:crn ' "semi-skilled" and the words 

11 made of any rna t erip.ls ovher t han imitat ion lea ther" . 

On th~s t he uoint of les ? lity ~a s raised by the Deputy, 

Co lone l Harry Berry, to . .,hom tbe code was transferred in • • August 1934, n~ J. G. Latiner , Division Counsel, rendered 

an on inion (see Exhi"oit 1) stR.ting that such could not be 

i mposed over the obj ection of a majority of industry. 

Colone l Berr'J and his As.sistant, r. Leigh Ore , 

Colonel Walter I1anGUJl1 succeedin~ Colonel :Berry and his 

Assistnnt , Mr. Dana Hill, made endless effort in t he 

succeeding t e:1 months to settle •matters but without 

success anQ ttere it r ested when the curtain was rung down. 

The or~er of ,purova l also contained the following 

provision: ( ·Pa ragraph 4 - Orde r of Apnroval Code 332) 

11 2. That, in Rddition to other ::1embers of the Code 

Au t hority , there may be ap:oointed by the Administra-t or 

o~ ~ected by such method she may. prescribe, in his 

discre tion, not more thfui t hree ·additional members with 

votin~ privilege to be chosen from members of the Industry who a re not, in t he opinion of the Administrator , 

adequately re ~sen d on the Code Authority. 11 

Industry itself hp"ving been unable to agree u1:1on the 

constituion of a Code Autho rity, the Administrator found 
9811 

- 43-

it necessary to write one that in his judgment would meet 

the needs of the case. Ho~ ever, it is evident fearing it 

might l a ter be found in a disclosure of rQrther data that 

his conclusions wera not 00~6 correct the provision stated 

above was written in the order. I think this was wise for 

it lnter proved of value in the first steps taken toward 

re-unitin~ this inC..ustr~r . 

Volumes A and B and General Files are filled with 

petitions against and l)rotests from Hembers of Industry, 

Chambers of Com'rJe rce, Labor TJnions, Retail Stores and Trade 

Associ a tions, not to forge t lP.wyers thR,t we re sent in during the months of October, ovember and Dece~ber, 1933 and 

J anunr y and FebT1.1e.ry, 1934. 

The urote~ts fr:>,ll into four major groups, objections 

to Discounts - Labor - Classifica tion, - lack of wage differentiRls, - raDresentation. 

Annarently a lmost every one was exhausted by the 

annroval date for but eight protest c:mts came forward under 

Executive Order 6205 B, and these were heard in nuulic 

hearing May 7, 1934. The follo"ring n.re the names: 

Hudson Leather Goods Inc., Nyack, New York 

G. R. Godfrey Company, Ge.rdner, Me.ssachusetts 

Pa ragon Novelty :Bag Comnany , Ir..c., newburgh, New York 

Uneeda :Oe lt Company, Nevrburgh, New York 

1Jewbur gh Handbag Comnany, Newburgh, New York 

Licht & Kaplan Inc. , Nenburgh, New York 

Strand Leather Goods Company, Inc., New York City 

Virginia Art Goods Studios Inc., Lynchburg , Virginia 

There was doubt as to the validity of the last named 

protest, Virginia Art, but Division Administrator Rosenblatt 

allowed them to be included in the public hearing held May 7, 

1934 ·oefore Assistant Deputy Worthy . (See Transcript Public 

Hearing and vii th re f erence to action upon Virginia Art see 

page 85 of same. Also see Appendix M for digest of Protests.) 

These rotests wer e ~is llo Tie d in Or(.ers - Nos. 3 32 - 4 

5- 6 - 7 with t he excep tion of Vi $~; ii.1i a Art wh ich was aJYpa:.. -

e3.: tlJ l eft in ebeyance ancc of this I shall treat l At e r. 
9811 

- 44.-

CODE ADl·:.INI STRATLON 

Or geni zation 

Pers onne l 

Fi el d Or ~e iz n ' '-

The ~od e Authori t v BS B governing body 

Bud _,e ts . . 

Eff,e c t on I ndus try 
- 45-

III. Code AdministrC?tion 

A. General Preliminary Discussion 

Reading the foregoing chapters it ~as obviousl y difficult to 

launch the new governing body, ind ed it se md for a time doubtful 

if an orgc::mization meeting could. be held. However, the first official 

meeting was held, April 3rd, 1934. (Se e copy of t el egram dated April 7, 

1934, Exh ibit N) Feruse l of t he minutes of that mt:eting (General Files) 

indicate the? t t wo . prior meetings we r e held ~'l arch 23rd and. arch 29th, 1934. 

As was to be· e.Apected two distinct ceinps 1f'Te r e evident, out of town 

manufecturers sitting on one side of the Council t~bl , New York pl aced 

opposite. That custom \'"~as followed until peace wa s declared in June 1934. 

Labor r epr esentatives not having be en appoint ed w~re not present. 

The first business was thPt of election of officers and the 

following we re elected, · rema ining in off ice until exniretion. 

H. Schot:nfE>ld 

Sol lviu t terpel 

George Meyers 

I. Schoenholz 

Cha irman l Vic e Chairman 

Treasurer 

Se cr e t.ary 

Following , t he Chairman end Code Directors (these last two in 

number, then not officially P.ppoi nted although cogre ed to b •r the Board) 

were Puthorized to name comwi tt e es to imi1 1ediat~ly consi de r the 

important subject of: 

9811 

Defining s emi-skilled pursuant to Article IV, Section 2, 

Report on Hand.ice.pued persons pursuant to Articl e IV, 

Section 7 ( e ), -

Provide Minimum St c:> ncards pursuant to Article V, 

Section 6, 

To study question of Homev•ork pursuant to Article V, 

Section 10, 

To dra.w up Contr E> ctors egreement pursuant to Articl e V, 

Section 12, 

To draw up Constitution and .By-Laws pursuant to Article VI, 

Section 8 (b), 

To provide coordination with related Codes pursuent 

to Article VI, Sec tion 8 (e), 

Pl:- n!'ing Pnd Fa ir Trade Pn'l ctice pursuent to Article 

Vi, Section 8 (g ), 

To draw un Uniform Cost System pursuant to Article VI, 

Section 8 (i), 

To provide regulBtions of Style Pin'l cy pursuant to 

Article VI, Section 8 (j), 

To draw up Label e~~lati ns su~ nt to Articl e VII, 

To draw up Regul ations of Selling Below Cost pursuPnt 

to Articl e VIII, Se ction 14, 

1inance and Budget. 
- 46-

This was a fairiy comprehensive committGe set up and later minutes 

show that on the who ~ appoi nted membe rs took their v.tork seriously, 

approached problems earnestly Bnd int elligently, not sparing themselves 

or- the ir timG. Oft times t hey worked 16ng an~ lPtG, illin ly g1v1ng 

up Saturdays and holidays, anc the Administreti on member being present 

at many of these Commi tt ee mee tings E~ n speak with knowledge as to 

proceedings. 

If we dwe ll u pon this matt e r unduly it is that, elthough perhaps 

unwittingly, the Division Administrator WP S unjust, in the charges 

made by him at a public hePring held June 7th, 1934. He at that time 

took occasion to o;enly rebuke t he industry for lack oi diligence and 

for not functioning a s we ll, as ca.pebly , a s efr ici ently and a.s intelligently as it could (see Tr anscript Public Hearing June 7th, 1934, 

pages 2 and 3). 

These reme.rks had far r eeching r epe rcussions for the Code Authority 

keenly f elt their injustice and deduced that the Administrator and 

his Assist ant Deputy we r e irrevo cably com. 1i t ted to labor regardless 

of the veri ti es, and 1fTere not to be trusted. Thus ,r,?s still more 

intensified t he feeling be t vreen l ebor and manufP.cturer, and the Administration's probl em in Pttempting to s e ttl e hit?;hly controversial 

matters made more difficult. 

At this first officiPl Code Authority meeting it v:r~s decided that 

a meeting of industry should be celled so that it might look upon 

its new Board end I ~P s ~sked to be present and explain to industry 

just ,!!That the Code, if used properly anc consci ertt iousl y, spelled for 

them. 

9811 
Mr. o.w. FeRrson 

New York City 

Dear l>hr. Fears on : 

- 47-

SOL MU_TEnPt~~, I NC . 

r·iE< nufc..cturers of 

:B'A!rcy LEATHE.K GOO:JS 

330 I··ifth Avenue 

New York 

April 12th , 1934. 

This is a r emi nder that in your c.ddress to the: ,nanuf<·cturers this 

evening, you do not overlook to emphasize strongly the absolute nece ssity of e.dhering strictlv to the code in order to derive the benefits 

that it affords to everyone in the indu$try. 

I suggest that you plead with them for their Ov"n inter est to put a 

stop immedi~tely to the price wer started since our code mas signed. 

This price-cutting now is ·.-rorse than ever before in the history of 

our industry, nnd that, on top of hir,her wages and shorter hours. Such 

?ction on the Pert of some unscrupulous manuf::> ctu.rers kills t11e entire 

morAle of' the industry e.nd de fea t~ the very puruose of the Code. 

Urger every one of them to have a little patience ant courage until 

the Code is put into operation. and vd th the assiste.nce and cooperation 

of all concerned, we will all g:e t the benefit thc?t the Code and the 

entire Recovery Act offers. 

Ask them not to wec:.ken nor falter, but ste.nd. together like men who 

have a perfect right and just cl a im to a legitimete 8nd honorc.ble exrstence in their business. 

By doing this me will gain the respe ct of those we come in contact with 

in our daily busi ne ss dealings, and meet with much l e ss resistance than 

''le do nO'~~' t e.nd at the same time eliminate the a.buses th8t C1re heaped 

upon us v.rhen we leek unity between ourselves and mistrust ea ch other 

with no good end to anyone, either to the manufacturer, ret8il e r, 

consumer or worker. 

Sincerely yours, 

/s/ Sol wu tterperl. 

9811 
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This I did anc one of the lar PL st PttendPnces kno''"n wes he d at the 

MeAl pine Hot e l, re'" York , InP u:f:· ctu r e rs coming in f r ol!l Pll parts of 

the c."~ur: try. Tn i s lilec. ting "'c...S <lofi.r i t e l y the: fi r st s t e:p in consolidating 

the warring ol c'7l e: nts and -payed a rx:rt in the p e ecu pa ct signed some 

tim , 1 ter. 

The eff8ct of tht: nem code 1 s '' Te rms 11 provision wc- s brought out at 

both the Code Authority mE e t in6 Clnc t ht- l 8.t e r one of Industry, and it 

developed tht=~t .-:::> netail Buyers strike wes thre<.'tGn8d if recession from 

th t Codes Tt- rms ll'a.s not mad e . (Se e: EAhi b it N. St- ction dat e d April 7.) 

As t he v1eeks passed fe elings r r.n still highe r, the old bu.gaboo 

"Repre sentetion'', a l ways to the forL , ~r en ting to a degre e a sane 

appro,:1ch to probl ems from time to tililL' prest:nt e; o. In Mt=~ y I found it 

n e cessery to halt a Code .h.uth orj_ tv JlJ e~..; g a s uch, and teckl e the 

questions unde rlyi ng thE r em·e sen tc. t i on p roble .. 1L (see Exhibit Section 

dPtcd r~1ay ~5) and "' ft "' ~·'eE 1·:s lPtt:-r ci L cis1on WflS 'nflde to unit e all 

trade e.ssociations into one . 

Cri ticisu of this move "'P S rn.n c' e by lebor 'I.S .. )e ing desi~ned to 

b e tter fie;ht the moot-se:·1i-ski ll l"d -~n rt r h our Pnd cl e.s~ .i icfltion 

problems, los inr; si.e:ht of tht f e- et thR.t the rrJ.C>,nuf: ctur ers' . side of· 

industry hed s t i ll oth t,r l1Pt tl· s _fc:> cing t hein anc nf.eded uni tv if thev 

~e e to hab ilit ~t e tnEmse1vf s • 

. The Code Authori t 'r s e l ect e e .:. nc :'..PtC::r t; l e ct e d. t '.'7 0 fonner me!nbers 

of the ir 0"'n industry to hePo n p t '1e Code A.:thori ty ;:lPCh lne • . These 

t vrr o !Jlc;n mer e unusu:.:1ll v ···e ll t::; qui Y'"':'t_;O for t he ir nork , for in 8dc' it ion 

to heving 8 first l:u01 nd kno""'led e or' proce~se s C?nc matE.riBls used, an 

unders t .2nd.i ng 01 styl e , Fi ll inroorten t to a n indus trv of this chClrPcter, 

an e.p,Jr e cie.tl on of t he d iff icu l t -c.: o~ it J..on t hb indhstrv was "in, El nd 

knowing ell t he tricks of t he t r PCh , had P tc:>.ct, <" sy rpP~thy vr i th and 

underst8nrin::: of tht- ·1;::nur0ctu n :r s :8 1':e - t<Y' that W<·' S to stpnd them in 

goo d s t ead in t hE:; trouolous mont :. c C1 he pc . THPt thc:ir pc comolisr..ments 

r·er e .great is t o b e found i n P r cd:.i n.o; 01. rnHteriel cort;:: inec. in the 

Compli ance and Gent' r r- 1 Files, fo r t .Lev plaved an ililpor t .· nt pe1rt in 

bring ing into E>nd kee Jin~ rec<?lci tr::Jnt me .1b e rs in line . ' ( See .Sxhibi t 

N, Se ction of June 8, 1934.) 

To cite on -pc=;r ticular inet c=;nc e: , th.!'1t oi· Virg inie. Art Goods 

Company , · '."her e not ~ ble ,;·ork ,n,. s done. This co i:1P0DY r efe rred to on 

pc:>g~ 43 of this istory ap-oli e d for E . .il..fmption on - ·--hr t industry f elt 

was en unjust clPim. As point e d Ollt ir in c=; steted thGy had tek6n 

no nart i n tt'It- mrking of the Code f'nd '"e r e enti tlc d to exemut ion under 

6205 !3 . Industry deni t:d thc::ot this v-as so, C1nd 1Phuther so or not, the 

compeny lived u nde r 2 vrc::ogt: s c e l c- be.s8d uuo n the ir cla im for El 'differential 

but vrhi,ch vr:::-s nev1er ?uthoriz ed Pt l eest . r'orma.llv oy the .Ad1ni nistre.tor. 

The Cod e Dir6ctors act ing u po n t ne [;ood counsel 01 Dt-puty ·,;e lter MB.ngum 

finally viti t ed the fF~ctory i n ll'{nCti-OUrg E>nr t hE; r •;; oe'veloped Wh E> t V~Tas 

t he bc=;sic trouble in ,mc: t~ VH !';in..i.c Art fe e l th ir need for a differnti81. Their one r !:lt ive "9r8 cti c e wps tht n CllE>n ,<eu. c=;n d t1le co 1 pc? ny "'BS 

brought into obedienc e . ·; e shPll hc:.v e occe.sion t otr eat of this more 

fully in <" l s t r chppter. 

9811 
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It will thus b e evi den t that the now body, c\.lJproach lnp; its 

nrob:!. c !r.s in ,:;:o )d spirit, J. ."'id out e :;-a irly COl:rpreh E:: nsive pr ogrc>rn and 

no one , Cc n 1.-i th justice , cnerge l t" ck or· C:. llit;enc e or c onscier.tiousness 

in tackling the ir probl ems. The stri~ es made towerd f inding the 

answers will b e, not e; d as '.' 'e progr e ss. 

The two cnief difficulties fpcinE: t he; Code Authority were 

Repr esentation and Labor r e lat1ons, oth e r questions were r e l ativ e ly 

of minor import2nce . Tims ~f s pe~1aps the rinci~Pl f pctor n e cessary 

in ironing o .. t th.E: q_ue r tion of fair r epresent c tion . Of cours e corr:mon 

horse sE::nse h Pd to b e brought into play ·but s ince all tried to use 

this, voe begP n to see as the months passed a disF~ pp r; c:mce of the 

suspicionE existing at the bef,innin.:, e.nd the Co:le Authority l eading 

the we.y, industry became unit ed almost l UO pE::rcent, with one major 

trc=tde es~ocic:tion y hich is today !ltinu1n~ and. l ookir.J; for the execution of P volunt e rv ?greement . Hq3 the go ve,rning body not approEJch e d 

its p::..·oblems as it did \''e would not today see the g limmer of light 

leadine to~ard a be tt e r state of affeirs. 

1he second major difficultv , Lc>bor .Rele.tions, proved to b e our 

greatest stumbling block. On pPgt.;s l4 , 15; .16 , 

of this historv we have touched upon thes e bri Gfly Pnd it v; ill b e seen 

whpt the surface r easons we,re, thet constantly k ep t the. problem at 

boil ine point . However , my own fe e ling is tnat the y were secondary 

and ·contributory. 

Ye ers of soft living l ed to the same type of thinking and for 

many years labor relations were purel y those of the ba rgain counter. 

'No one stopped to consi de r that the welfare of lauor did not begin and 

end with bergeining over wPges and hours, no one f e lt that labor was 

an intet;rel part of mF•nufpctur ing , none cared a s to conditions sur rounding their fpctory empl~yees. rJaturc•l ly wh en a g roup is made to fee l thay 

are pariahs, dem2nds are perhap s not ?lwc>ys made 'Pith good sound s ense 

and are not besed up0n existincc:: r epliti es. Such, h e re as e l s ewh.ere 

was the fundamente-1 trouble ith l ab or r e lati ons ano the situation 

obtaining was to b e expected. 

Complicating the me-tt e r still furthe r ~;rrc-s the internal condition 

of the Pocket Book MC1k e rs Uni c n . Stri'fe had existed for a long while, 

finally r esulting in a complete ove r tune of the officia.l s and the 

turning ove r to , so it was stated, the Co~runists . 

Further c on tributing to the situat i ons compl exity ~2s a mistake , 

thc.t as Administration Me,mber , I made . The appointed E::p resent~tive 

of le..bor wr>s a Phillip Lubliner a c._uite likable me-n, an official of 

the union , enC one v:rho knew his busine ss. He V'78S n ot overl y strong 

physicelly and was fe.c e d with a oossible serious onerati on , or so I 

was told , and therefore 8Sked me - to urge the F~pDOi:rtment of an alternate. 

r his I did , and in due t i me Mr • . A. St e- in, :Olr>:r"'ge r oi the Union e~ppeared 

on the scene . He IPCI s the dir ect o-c~.Jsi t e in tv'!_Je to i.Ir. Lubl iner, 

much inclined to bl uster, give,n to nC~m e cC~llin , not ho~ever in me e tings 

but after merds, c.nd generolly obJection?bl e in · his manne r . 1/hile 

Mr . Lubl ine r 11'7as not e.. '."'el l me..n I cemb to the cor1cl usi on that was used 

9811 
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as c subt~rfu e to h~ve a second lpbor ep es~ ntative pr e sent, one 

only vo t in.£" . It wc-·s n ·alizef. th ~t t11c alterne?te should only be 

present 'i'hE. n th~ sitting meJnbe r vrfl!: absent but it vras not considered 

,.,is to offe r serious obje c tion . TLis situation did not mal{e for a 

peaceful .?pnroacli. to C' uestions invol vin-.g labor anc I f!? , ·,_ that all 

dr evr a si "h of relief 'l"hGn as a r esult of the union election .uDset ~ -

a Mr. Laderma n wes eppointed.. He ho·;1e ve r Vl1as not v·a rmly welcoued for 

it V'TC?S delinitely fe lt thpt he hP d t iJ.e CO ~. li!TU nist tPint. 

\'li th both l ab or Rnd Inanufact,~rir> g groups torn vri th int e rnal 

strife it mey be seen thRt it ~Es diflicult to i :nprove the reletionship 

b et,. een the t V'7 o fectors, end in L' ct Clt the end not En.1ch of accomplishment in this dir e cti on mav be er e<: i t ,.• d to e ithe r side. 

Subordinat e to th( se two ch i ef c.i ifficul ti es yet pert of the:n wE~s 

the utter E~ck of fClctue~l knovrl t. d.co;e uoss e ss c d oy the industry. The 

industry he~s beE n in existence for ebout fifty years with never an 

Ftt em')Jt med e , l?rior t o· 1 934 , to .e:r' thc r toge the r eny f::-cts respecting 

its e lf anc u pon wh ich both l.pbor 'cmc' incustry rnisht hc-ve formed some 

just conclusions. 

By :•-ley 1935 the bClsis of P tc.t istic~l anc~ factual structure was 

in exist enc e and at the end we ~ ~·:e1 n to see something of e picture. 

(Se e page s 6, 7, 8, 9, 10, 11, 12 , ofthis history, elso Exhibits 

:B, - F page 1 - G - H - N pege 4 Se ction da.ted July 10, 1935. ) 

The matter of Home'."'ork was a collat e ra.l part· of the labor problem. 

Prior to 1934 there 1nPs but 2 . vague l.c~ea of the question and of its 

possible effect u pon the industry. t\ic:;y 1935. found. completed a first study 

the.t offered a p~ rti al solution o.::· ·t he uestion. ·(See Exhibit 0 4 

parts.) 

Additional to the before mentioned problems ~as tha t of cost 

figuring. It is sefe to sey that prior to 'the advent of the Code not 

e~ beker's dozen had ever s e riou sly considere d a scientific or ordered 

approE~ch to this matt e r. In t he first six wonths of 'l935 great ~rogress 

wis made in this directi 0n E~ d th e ~a~ pre s ent ad to the Administr ation 

for consideration Exhibit P, e. plan which el though neve r final l y 

E!pproved indice t ed first steps at l eat;t t aken towe rd · thc: imposition 

upon industry of a useble syst em tha.t must in the end have helped 

finencial positions. 

A conste~nt thorn in the creptive mermf?cturers' sid.~ was his 

l oss to Style Pir-= cv, end. for th e first ti1ne a r eel Pttempt wC'l s me.de 

for po ssibl e solution of this pro·u l Ec1ln. (See B.xhibi t Q. '\ 

Compli~nce ~ith Pnythins did not· exist before 1934 for no ·ne 

had ev r at t emp t ed to sho ~P a m~ nuf ct rer the folly of some of his 

co rrme titive pr!:'lctices. ' Strcm.o.;e as it may seem· in the light of this, 

compl ienc e p rest:n t ed n·o great · ~rob1 m for e lt:nough et S1!'70rds points 

es they were , every one realized the ne ed of FCme such instrument as a 

code to put a stop to the foolishnesses practiced. Every one 

9811 
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th e refore V'' e l c o!lied the Cod f Pnd f'li!lost Pll be lieved they must make 

F.ln attt:apt to live u p to it, not ~ cours OO~ , that v•ou ld hflve b een 

too much to _eApec t i'r OJn eny hum['n .-.~r g.!'l tion but in the me.in they 

did so. The ,..,c.ll kno"n chlsl e r of courc::e wes elvreys in the p icture 

but co~per r: d to othe r industri e~ of ti1is type fer: cpme to our Pttention. 

Hour end 'Pege co rrrolriY'Its thPt re pcrted the E. :rt .A. 11'•e r e s1nell in number 

aild tra<ie practice viol Ptions Blmost non · ex'i ct ent.. (See Exhibit n..) 

-'f.et ings we r e m<mv in numb 8r (see '9F·ge s 56·, 57, 58, • ) c:mc' i nvariably 

l ong drewn out. 

No inc3ustry member of t h e :Board: had had pre vious kno,··l e dg e of 

uarl i c-·me nter-r procec.'ur e , h e n c e protrac t ed discussions and vociferous 

beyond.. 11'•ords, F.nc yet vri t h Bll ·a ke e·n desire to g overn in<ius try justly 

ard wise l y . 

In an earli e r pa rpg raph is listed the committees set up at the 

first offici 81 mee ting . The comnosition of t he s e g roups was w1cely 

mad e end r eports in the a-p-pendix (See· .A.hib~ts C, G, n, K, 0, P, Q) 

sho;"' the thorough and 'peins't8kine: c e.r e exercised in de libe r11tions. 

Incus try of cours e f e lt thet •r. i th. the coming of the n e1r11 code era 

:·nir?.cl e s would occur e.hd i f our own proc edure could have b een ouickened, 

Dc r ,:e.ps s eemi ng .nira cl e s •;rroulC! l_'lave come to l? a ss. "3e that as it all 

mPy, certPin it is, "'hGn the e nd came , industry h?d begun to believe in 

an.d feel thBt t he ir Cod e Au tho ri tv --·e r E: endee.voring t o r ebuild a ne,Per 

and better indu stri?l vi ev1 pou:t , a true r perspe ctive and the ,1 orizon 

hc:>d become clear e r •r.• i th p romise of ·better things to come . 

£or thos e wh o did not live with the industry durir.g the hectic days 

of 1933 and. 1934 it is Cl ifficult b underst!"lnd. just v·het if a nything of 

a de r ini t e nature was accomplisned by pll the long drav-.rn out noisy 

iOPe t ings of this Board nnd of indus try it s e lf. ?'or that :na.t te;r I, 

L"l.Vself, find it hed to pat t h'= finger U'J?On c oncrete t n ings and. sey this 

was started, r eacned t l1 is point, Rn d was concluded · satisfPctorily or 

other,,.. i s e . Specific ~aings we r e done as r e ferred to above enci found 

in the appendix, but;·I f E::e l the :nost important pccotnpll.shment{ of ell 

'~''P S a reb".lild ing of t h e spirit, · F.' r e - examination 6f values, a we i .-.?;hing 

of po sition, e nd ? clinching of the deter:.1ination to fi ght on and win by 

f~ir merms. None o!' the s e c a n be or are put do''lll in records of 

!!1t:etings, they Pre not el'!'FlYS or p e r h?ps ' oi ten exp ss d but living 

~ith it one ·feels it in the eir, and th~t ' vas the condition ~t the end as 

age inst the early d ays of figh ting and refusal to consider the othe r 

fello'?• and all that that entails. 

The memorandum '1•ri tten by the Administration ,:!ember in July 1935 

should, I think, be r ef e rred to (see Exhibit N, Se ction dPted July 10, 

1935) for it g ives a. su'runary of t h is Coc.e Au.thoritv's c- ctivities and 

the picture P S I sa~ it. 

B. Orsenizetion 

l. '':hile Article VI, Section 1 of the Ccd e called for a Code 

Authority of eleven (ll) r epresentative s of industry RnC the order of 

9811 
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~pprovpl s~ecifie d the ~~ ointment or e l e etion of three additiona l 

members to be chosen from members of industry vrJ:lo 2r6 not in the 

opinion of the Aominist r f-! tor Bdequ~ y r epresented but t en were 

ap'9roved by the or der of Septembe r oth, 1934 (Order 332-16). The 

e l eventh membe r vras . to have b e en sel e c te<i by tbe L~dies Handba g 

Me nufr-- cturers of the F~ cific Co Hst but ~pparently no pssocietion 

exi sted , and as far as the Administration member knevr mc;mufc:;cturers 

from this r egion n ev er coml!IU!licat ed with the Code Authority nor 

c:;tteml;Jted: to elect a .repr e se.ntB t ·ive. The Code provision in p"?rt . 

follo,ns: 

"Five ( 5) members shell oc-: s el ec ted by the Ass oci c:; ted 

Hc>ndbag Incustri es of America, Inc. 

11 Tvro ( 2 ) members shall be sele cted by the Nat ional 

Associ r1 t ion oi LBdies Handbc>.g MBnufpctur e rs 

"Two ( 2 ) memb e rs shc:;ll be selected by the Industrial 

Cou ncil of Le athe r Goods l:anufc<cturers, Inc. 

"One (1) member shPll oe selected bv the llidwest 

Handba.g and Small Leather Vva re s As so ci c:; ti on , Inc. 

11 0ne (1) member shall be select e d by tne Lc:;dles' He ndo.cg 

l. ~anufi-l cturers of t he PPcific Coast. ·" 

In addition to Industry Me mb e rs provision was mad.e for one 

member to r epres ent 1 <?-bor a nd such ot her a dd itio ne l members without 

vote to represent such t;roups or int e r e sts or such govern·1ental 

agenc1. e s an d. for such periods as t he Ad.rninistrF·tor ,night desi gnate. 

Industry members we r e to be selc:ct e d by and from the four active 

associBtions (Se e parpgr aph 2 of :Articl e VI of t he Code abo ve) and 

in f pct ~e e elected, first by t he sever a l boprds of gove rnors and 

ratified by the AssociPtions. 

One lP.bor me 1ber, Ph i 1! i p Lubl iner, w p s eppo1n ted · Aori l 27th, 

1934 (Order 33~-2) but on c:1Cc~unt of ill-hec:; lth··.;e s permitted to have 

an alternate. Dissensi on brec>kine; out in tht. r anks of the Internatiohal Pocketbook 1~ ak rs Union, tv!r. Lu oliner c>.nd his RlternBte, Mr. A. Stein 

we r e supers ede d J anua ry 2nd, 1 935 ( Order 332-20 ). bv r. I. Laderma.n. 

The Administration member , O. l, . Pe e..r son, s e rving d.th the exception 

of c>bout t1:•o '~":ee ks t h roughout the Ad u1 inistration of the Code, mes not 

hovue ver officially enpoint eC.. until !.'By lOth , 1 934 ( Order 332-3). In 

April 1934 , Dr. P<Cml Abel son "8 s desi gnP t ed, serving at two meet i·nP.;s 

of the Code Authority a.nd one corn:ni ttee 111eetinp; . Upon. objection 

by out of town .manuf pcturers 'his c?ppointmt::nt v•p s not conf~rmed and 

Mr. Pears on 's de si gnption bec~me officiF.~l. 

The va.rious 2 s s ocio.tions or the ir Boerds of Governors he.ving met, 

made the ir selections end presented the sel e cted names and ciedentials 

to the Depu ty Administr a tor and. in due titne the Code Autho rity ll'!as 

9811 
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officic>lly Ppproved unc e r Orcler ' 33:?-1 6 daten Se pte!nber 5 , 1934 . 

In ,iay 1934 evidence of troubl e in the i\Jid.···est Associt=~tion 1 s 

ranks c~me to the · ::::ode Authority 1 s attention, vr;rious r esignPtions 

took plE~ce and El ne•rr election or officers E~nd del egP tes "to the Code 

Authority ~" EIS held. · In June ~934 .J'. . H. :Blumenfe1d , ;.:irro ' Le? ther 

Goods Compt=~ny., 4::' 2 South arket Str eet , Chicc:go, Illinoi:::., 'FEIS seP t ed 

(See :.:inutc-s Code Authority ·. eet.ing s }Tos. 8, 9 1 10, , held respectively 

i

1

Aay ?4 , 31, June 6 f'nd 21, 1934). · 

As minutes of rnec:: ting's are stud.ied one note's the -presence af 

industry el t e rnr. tes. Such , .. f: re prov'ided in the By-La• s of the - ' 

Associati ofls 2nd considered necessr-ry because most members of the Board 

hEld fr ctor1es locE~ted in plPces other than e· ·~ York City and. in 

Eidd.i tion mc> ny ""e re Ecting AS their o•:·n sF- l esinen , 2nd thus oft en on 

the roed. The D!"E!Ctice mc>s fo110•'red until lc-te in 1934 -,·hen the egF~ l 

d ivision l?Ointe~ out its i1iegPlity. (Se e Generpl iles -Co rrespond en ce 

IJeigh E. Ore, AsEist!Oint Deputy, Sept ember .26 , October 17, DeceL'l be r 1 2 , 

1934). 

June .23 , 1934 , notice of heE~ring v·ps ·::u . .: lished fo r the -pur-pose aroon c: 

others, of c5ete rmininf; •:rhe thcr the Coo.e Authori t v 1n r!s truly representE~tive. 

iieE!r ings ··:ere bel o , l EIs ted. one day, Rd.j our ned. and r e - ol?ened July Sth 

Pnd lOth . Iomeciately '9rior to the June hearing a co imJi tt ee of •1rarring 

manufacturers had come to ? n Pg ree!nent to consolidE~t e E~ssociptions, (See 

~xh bit r , Se ction dEited J u ly 2, 1 934 , and shortl y t he r er!ter it wrs 

IPtified at an industry wGet ing . 

At the be1ore ment i one d heE~rings ? ne ~ groul? of 68 smFl l Ne~ York 

mariufpctu r ers cpme to light, r epresented uv ArchibF ld PEllrner , 2 La: ayette 

Street , ~Je,: York , .At torneyFt La -. Th6v filed, July 6th, 1934 cert ifi ca.te 

of incorpor a tion under the nc? ;je ~e~ Yor k ~?bricoid Elnd Leether Hc?fldbE~g 

t' 'lanufPc turers .Associ r tion Inc . ·--i th 

i' 'i8.x S. einmpn 

ivleA. H. Kt=~ sno,., it z 

Julius t=~l nz ig 

:illi em A. ~irschborr 

Ed w ·- rd. R. LO '":' 

i-wrris ';iunthE~l 

He r rnen h os enzmeig 

Philli~ Lichtenstein 

Herman Fell e r 

40 . est ?Oth St ., N. Y. C. 

- 20? Cr nPl St., P . Y. C. 

- 2 ·est 29th St., N. Y.C. 

- 51 00- loth Ave ., 'i.1ro·ok lyn, N.Y. 

- 38 ,est 3~nd St ., N.Y!C. 

- 9 est 31st St .,· N.Y. C. 

- 258 St., Brookl yn, N.Y. 

- 1 605 Nelson Ave., Bronx , N.Y. 

- 1 349- 57th Str 1 Brookl yn, N.Y . 

es directors. (See C-enGrel :r. iles a.no TrC~nscript , Fubl 'ic Hearing of June 

7, and July 9 E>nd 10, 1-9 ~) 4). This g roup, t=~lso seeking re-presentation , 

'~Ps COm-posed mcinl y of Sin811 rnenui?Ctur e rs, in f?ct the ChElrge •·ra.s made 

thet th v ·ere. ·cont r ectors posinE; 88 mpnufc::cturers end set up by the 

Union solely for the purpose of crePting trou Jle 2nd sentiment YTi th 

the Administration, th8t In6ustry did not Pltogether see eye to eye ~ith 

9811 
-54-

the Code Authority. 

Hov·ever, this may a ll hc>ve been, within a v-•ef k or b•o after the 

h ec=trings, nothing more vre s hea rc of the group as such. 

·The Cocle Authority set u p question ,, es the first subject of the 

June 7 hePring. Industry unau lifiedly seid they preferred to heve 

the Administration Member make the selection of the additional 

memb e rs. (See -peges 13 to '22 June 7, pnd 279 ' to .3::53 July 9, 1934 

TrPnscript of Hearing.) · H6v11ever nothing '•"C'S ,done :Bbou t this ?t that 

time·, it · seeming to be i·mpo·li t·ic. During the ~ su~aJ ei: · e.nd early fell 

a strike vre s ce.lled re sulting' in·· 'ma;ny rr;o~ . tnc1rnif a.ctur.e rs leeving 

~-:ew York. Consummption of· the cons'olideti.on move we s not considered 

fe asible and not until J pnu[lry 17, · 1935 wa.s the ep1Jointment of 

a.ddi tional ne'i'' members of the Code Authority pressed to a conclusion 

and recommendation made to the Administr8tor. (Se~ Exhibit N, Section 

dated Janua.ry 17, 1935.) · 

i~1uch ·considereti on ~''a s given this by the Ad:nir..istre.tion but it 

v·a s not until some fe,, d<ws . ?efore · ~losure thet tl-fese ,;rere approved. 

Aarch··-Bth, 1934 the Code Authority 1:1ppro~ ing the close of its 

year in office the Arministration member ··rrote to the Deputy recommending 

that the bod.y should be continued until the expire.tion of the N. I . R. A. 

June 16th, 1934. (See Exhibit N. p age 3 of ~tion deted ·:e.rch 8, 1934. ) 

In December 1934 and. j anuary 1935 a series of conferences mere 

held betme en the Imitation -Le ~her Novelties Group of the Lugge~ge 

Code Bnd the Ladies Handbag Code Autnori ty Dir e ctors looking tovrard 

t.he absorption of the first' na,me d ,bY Hancb.qgs • . A depute.tion was 

r ece ived at the Handbc>g Cod e Authori•ty me e ting held Janue.ry 3rd, 1935. 

(Se e Minut e s Me e ting # 25, Gene r pl }'i'les·, and Ao.ministration i.1embers 

r eport Jpnua.ry 4th, 1935, Exh ibit N.) 

Cons olidation we~s in ess ence e~g ee ~ to Bnc. had it been confirmed 

would have brought to the Hc:mdbag Cbc.e Autho rity en· c>dc.i tionPl tvvo 

members to represent thPt groun. 

ith the e~ception of the ch ges not e d in t h is chapter the 

Cod e Authority re 1P ined ~s · ori g inally constituted un~il the Su preme 

Court's decision. 

2. Pe rsonnel of the Code Authority 

The follm in e 1?1ere the · members certified by ~he Associ 8 t ions 

as .having been el e cted: 

By the Asso ci a.ted Ha n0bag :If'dustri e s of Ame r ic? Inc. 

Harry Schoenfe ld 

Morris Immerma.n 

9811 

President Scho enfel d ;& Volf Inc. 

14 East 32J rd St.' , 'N.Y. C. 

Presiden·t · Bagcraft ~lf g. Inc. 

30 Za st 33rd St., N.Y.C. 
Richc..r d Ko r e t 

i.~~.u. i c c La :;i c~ 

*S o 1 .i1.1. t t e I'J.) erl 

- 55-

Pr esi den t Kore t Ii1C. 

3~ Enst 33r d St . , N. Y. C. 

P c: tnc r A. I. h:~ i d & Co. 

1 4 E~ st 33r d St. , N. Y. C. 

P resider t So l .Iutterpe rl I n c. 

330 Fi f t h Ave . , N. Y. C. 

By t he Iuc.\:ts i{,ri a l Co1.mci l of Lcc: t h.e r Goods l'n,nufo.c t u r e r s , I n c. 

Irving Schoenholz 

*Wi l li c.m KaC.in 

P r esi dent Schoenho l z & Week s I nc. 

15 East 32nd St. , N. Y. C. 

Vic e Pre s. & Tr eas. Kadin Br os. Inc. 

1 32. We st 36th St. , N. Y. C. 

By tho Nnti o:1al Asso ci c.ti on of Ld d e s Rrtndb C1.g r,:anuf a c ture r s 

*Samu e l R. Go l dsmi th 

*Geo r ge L. ~eyer s 

P r e sident Gol C:.smi th Bros. :if g. Co. , I n c. 

38 West 32nd St. , N. Y. C. 

P P..rtner :eye r s IIf g . Co. 

330 Fifth Av e . , N. Y. C. 

By the Liclne st Hanclbag 2; SmP..l l Leathe r Wn.r_e s Assoc i a ti on 

*S. i1 ol ou (P osition no t stn.t e d) Cryst a l Leat he r Goods Co. 

34 So. We lls St., Chicago Ill. 

Admi n i strc> ti on .lemb ers 

Dr• Paul Abelson , ll We st 42nd St ., N. Y. c. 

0 . W. P ea1·s o11 45 Broadnay , lJ. Y. C 

• 

Dr. Ab elson , c: l c>"."rye r , ha s b een f o r mr..ny yeC'..rs i mp a rti a l cha irman 

of s ev e r a l i ncustri e s not abl y Furs a nd I1I ill inery. No conne cti on with 

Hand B2g s. 

0. U. P earson m1 aC::..v e rtisi ng man c onne ct ed YJi t h Dry Goo ds Publica ti on s a."YJ.d quit e famili a r with t he di ::.tribu tive pro bl ems of c or.sume r 

goo ds (:;o ine; t h r ough ~7ho sal e ar: d r e t a i l dry goods and dep a rtment sto r e s. 

Accre di t ecl t o t en di ffer en t industries as Ac!mini st r a ti on l1l embe r but hacl 

n o connec t i on finan c i a,l o r othe r vti s e with any. First appointed as r epresent a ti ve of Dr. 'Iro~.· ar d t h e latte r p a r t of !.'a rch h e wa s no t made offi cial U.."YJ.t i l -~ ~at a s stat e d in the f o r egr;ing p a r agr aphs. 

Representing L8 bor Advis o ry Board 

PhiJ. l i p Lubliner 

Code Direc t ors and Exe cu tive Se cre t ary 

A. r·i ttenthal 

M. · Be r kov:i tz 

~~~auric e rio sessrm, ~xe cuti v e Se cre tary 

( See Exhi bit T fo r brea.l<:d.own int o t ype s of me rchandise and siz e <d Code 

Autho rity. ) 

9811 
-56-

The comJ? OSi ti on of the Board f Gil lowed t he rul e laid d.ovm in 

Article VI , but it is int e r e sting t o examine Exhibit '1\ , compare vJith 

the co n~only a ccepted gro1pings of price ranges and soe tha t each 

was f airly represen ~ 

T'1e addr esse s g ive n are t hose of the selling of f ice s which are 

locat ed i n New York City~ Those markecl v1i th an asterisk are out of 

town manuf,...,c t ure rs and r eGardless of Assr:. ciation affiliations it v1 ill 

be e )On that the out-nf-t,.,vmers obtained frcm the Deputy in charge a 

fair consideration. 

Thirty- one mee t ings of the Code Authority and thirty-seven meetings 

of Corruni tt ee s VLere held, Administra tion bei ng r epr e s ented at all ((}ode 

Authority Gatherings v1i th f requent att endance at c ommi t t ee mee ting s. 

Three industry mass meeti~gs also t ook pla c e. 

File shov.r copies of minutes of but tvventy-one meetings and there 

are mi s sing many reports from the Administration member. The administration .remb ert s reports are contai ne d in Eochi bit N. 

RECORD OF CODE AUTHORITY i~~ETI:L GS 

r\iEETI EG J.TUi.iBER DATE OF !.XETi liG PLACE 

1 1iarch 23, 1934 New York City 

2 11ar ch 29, 1934 " 3 .A~)r i 1 3 1934 ' " 4 April 11, 1934 " 5 April 26, 1934 " 6 Hay 3 , 1934 " 7 May 10 , 1934 II 

8 May 2.6"" ' 1934 " /1. 

9 I.Iay 31, 1934 " 10 June 6, 1934 Washington , D. c 

11 June 14 , 1934 New York City 

12 June 21, 1934 11 

13 June 23 , 1934 " 14 June 28 , 1934 " 15 July 5, 1934 " 16 July 9 ,1934 Washing t on , D. c 

17 July 20, 1934 • New York City 

18 August 2, 1934 II 

19 August 23, 193< .. " 20 Sept. 4 , 1934 II 

21 Sep t 27 , 1934 rr 

22 Oct. 25 , 1934 " 23 Nuv. 8, 1934 New York City 24 :9e c. 6, 1934 It 

25 Jan. 3 , 1935 n 

26 Feb. 19, 1935 " 27 I ia.rch 11, 1935 

28 " .Apri 1 4, 1935 II 

29 I1Iay 21, 1935 Washing t on , D. c. 

30 J une 3, 1935 Nevv York City 31 J une 11, 1935 II 

9811 
RECORD OF CO:.J..il T'l:EE 1IEETI FGS 

.!arch 28, 1934 

April 16, 1934 

April 18 , 1 93( 

April 28 , 193t; 

April 30 , 19 3~· 

i.:aY 7, 193( 

June 22 , 19 3t~, 

June 2G , 1934 

July 18' 19 34 

July 31, 1934 

July 30 ' 1934 

August 1, 193(, 

A%~t 24 , 1 934 

August 28, 1 934 

August cO , 1 934 

' .·,·· 

September 4 , 1934 

Sept embor 6 , 1934 

Sept embe1· 13, 1 934 

ep embe~ 17, 1 934 

eptembel~ 2 1, 1934 

Sept ember 25, 1 934 

October 2 , 1934 

October 9 , 1 934 

Octo el~ 15 , 93~ 

October 31, 1 934 

Nov ember 7 , 1 S34 

November 1 3 , 1934 

l ovembE. r 16 , 1934 

lJo em l~ 20 , 1 934 

No vember 21 ' 1934 

De cember 3 , 1934 

December 1 5 , 1 934 

December ~ 1934 

Decembe r 27 ' 1 934 

'larch 2 , 1 935 

March 7, 1 935 

March 11 , 1 93·5 

-57-

Ol.I~I TTEE 

Finance Committee 

Finance Committee 

Beaded Bag Group 

Finance Cor.uni t tee 

Finance Committee 

:B eacled B a,g GrouP. 

Stee ring Commi tt ee 

Steering Conuni tte e 

Beaded Bag Group 

Emergency Committee 

Cummi t t ee t o s t:udy existi ng condi tions i n the 

industri e s 

Small Commi ttee 

Beaded Bag Group 

Beaded Bag Group 

Labe l Commi ttc e 

Labor Committee 

Label Conuni tte e 

Labor Conuni tt ee 

Label Committe e 

Labor Cornmittoe 

Labor Committe e 

Labor Comrni t tee 

· Trade Pr;;l.ctice Complaints 

Corrunitt ee 

Uniform Cost Fo rmul a Committee 

Special Committee 

Scpecial Commit t ee 

Le1bel Cornmi tte e 

Styl e Piracy Committee 

Style Piracy Committee 

Label Committee 

Homewo rk Committe e 

:£3 eacl. ed Bag Group 

Cost Accounting Conunittee 

Design Piracy Committe e 

Bud et ~ Lab el Comrnittee 

Budge t f.; Label Committee 

Budget & Label Committe e 

The above aee t i nt:;s t ook p lace i:J. New York City 

....... Q,Q,.;L.:L. _____________ -- -- -
-58-

3. Chnnges in Co,do Authority 

The following surmnarizes the cl1ange s made from original personn0l 

as set forth in the foregoing paragraphs: 

1. Dis:::;ension in ranks of HidTcst Association of Chicago led to the 

election of 

l1ir. H. Blu '1lenfeld 

Mirro Leath r Goods Company 

402 South r.Iar ke t Street 

Chicago , Illinois 

in place of the original member f1·om tha t a r ea, 

l1Ir. s. Marlov;. 

Ce rtifi ed_ t o the Code Authority and. the new membe r, l.i r. Blu.nenfeld, 

r e cognized rrith the other members September 1934 (Orde r 333-16). 

( 2) A comp l ete overturn in the Internati onal P ocke t Book Workers Union 

brousht about the unseating of all officers and 

succeeded Mr. Phillip Lubline r (Orde r 332-20) as Labor representati v e. 

( 3) Dr. Pa"L,_l Abelson was appointed to succeed 0. W. P earson as Admini stration Lemb e r but the appointment was not confirmed and as p reviousl y stated with the exception of t v1o meetings Dr. Abelson never 

functioned. (SEE Exhibit U) . 

(4) Agencies of the Code Authority 

There nere none, all ·work confidential or otherv1is e being C0nducted by the staff of the Code Authority. 

( 5) Fielcl. Organization 

9811 

There ·nas maintained a staff of six field investigators reporting 

t o the co-code director I.Ir. Max Berkowitz who vias responsible 

f or all compliance activiti es. 

Thes e men v1ere r e tired manuf octu rers, practical men of age, experience and strulding an ct r espe cted by all. 

Additi onal to follov1ing the usual policing :0ro c edure of most code 

authorities, examinc::.tion anti study was made to find the answer to 

the oft voiced plea that it vras difficult if not impossible to 

meet code requirements and industrially live, in many cases the 

answer being found in bad slOFPY factory practice. 

Frequent visits were 1Il8.de to almost all f a ctories except those 

on the Coast, in Texas and Florid~ 

The co de Directors tock g reat pains in the selection of their 

staff and I can safely say they we re of much higher grade than 

those empl oyed by many other industries. 
-59-

VT'Dil e no a ttemp t was m<.!C::.. e t o conci.one f a ilure t o live up to the Co(e , 

: ea rch.Lnc; constn,_ctive excmi na tion r:as rnaCie to <lisclose the weak spots of 

1· ·_.c tory l)T c..c tic e a."l C,_ t o strengt hen them. 

These men &i d not consider t hemse l ves as po licement but rather 

as com1sellors and friends anc_ t he i r work t ook t hem far afield of the 

u.sual ac ti vi t y of sr:_ch men. 

Tleir first conce rn was na turally t he s c anr-lng of payroll and 

time r ecorC:_s but they also t oolt time to s tud.y mer chandise on the 

counters of retail stores, che ck ing of labels u s ed, ru; d as p ractical 

men deterL.1ini11g or a.t least gai n ing an i dea , from the p rice and v a lues 

offered if :11anufncturers ''7ere misbranding or underpaying the ir empl oyees. 

Some manufac turers ne re not always ho nest in the ir record keeping, 

and an ana lysis of t he ir p ruduct sometimes disclose d that at the price 

offered., they we re so (o ing , and rechecking proved t he po int. 

in ~ were taken by the CoQe Directors i n che cking fals e advertising of Retaile rs and much v1as accomplished i n t h i s direction. 

I n ea rlier chapt e rs of thi c h istory ment~ on has been made of 

the disse~1s ion existing and the c ause s thereof. This staff by its 

uniforu1 painstaking care and fairne s s , its wi llin.gness t o counsel, 

unquestionably played a part in the peace pact t hat was ma.c-:.e and 

Industry bega.:..1 to s et, at l east a g lirmne ring of app r e ci a tion and 

understanding of '\7hat a code '''as designed to and could do. 

Na.t u rally there we r e some 1.::h o co....Ud not s ee the liGht . The outstandinG instance of this in the first months was the manufacturer 

refer red to L1 t _1e Ad!nini s tra t i on I.I ember' s repo rts. (See Exhibit N. 

Secti on tated April 5 , 1935) and i n the folloV'.'ing l etters from the labor 

union. 

"NEW YORK JOI HT COUlJCI L 

IlTTLRNATIONAL POCK:.::rr:SOOK WO:RKZRS UNION 

Aff ilic ted With 

American Federation of La bor. 

l\ir . Olive r U. P e arson, 

Code Autho rity, Ladies' Handbag I ndus try 

N. R. , 

45 Broadwa~- , 

New York City. 

Dear Mr . P earson: 

I.laY 22ncl , 1934 

The St;;•l e cra ft Leathe r Goods Co. l o ca te d in Bridgepo rt, Conn. , a 

subsi di o.r y shop of the i.Iorri s White Hanufacturing Co. of New York 

has openly challenged the authority of the code aut hority of the 

industry anc~ has hired. close to t wenty- five a;_)p r entices in violation of o1n~ Ha).1clbag Co de. 

9811 
-60-

The Union hF.r· e.lreaciy rebistered several compl aints for vi ol a.ti ons of tJ.1e 

Code V7i th the Cocl.e Authority as well c?..S v1ith the _r. R. A. Offices i n tJ.1.e 

Stat e of Co ni.lc cticut acainst the Stylecraft Le:1thrJr Goocls Co. but t:1e finn 

instead of _Ja;f ing any attention to our compla.L1ts, is openly defyinL; the 

Code Au t :1o ri ty. 

Isn' t it ctran;s e t~ 1at the d0rri~ White ;,ifg., Co . o.ncl the Stylecraft Leatl1.e 

Go ocls Co. , vni ell firms had. r ecei vee, at the ·beginni ng of the year a loan in 

the amovnt of 4>100 , 000 f r om the R. F. C. tu conduct t heir busine ss, 

should c~1allen3; e the Code Au t hority and d~fy the N. R. A.? The si tuc:tion 

is more menaciuc because of the fact that l.io rris Hhi te is \.<penly boas tine; 

before othe r manufacturers of said daring exploits of t k ins on numerous 

appr entices in C:.efiance of the Co de Au t hority vrhich makes for generral C:.~ 

moraliza.tion of t he entire trade. 

Your i m·,1edi2.te a.ttention and ac tion i s most urgent. 

Wai ti ~ to hear from y0ui I am 

:BS&.AU 

12646 

AFoL. 

Ve r;;r t rul ~r yc"l;_ rs, 

(s1. g· nec ") A • ST.=.."" 1 ~lr ,, 

r:Itma.;er 11 

The situation here r ef err ed t o resulted. lat e r in the matter beins 

brought befoJ?e the C0 mpliance Boarcl and restitution made . Of this we 

shall cteal later. 

A ew ot~1ers , .:;ene rally . sma11 in size also proved troublesome but 

in ·"the r.1o.in i D .... ~ust y r ea.ct ed spendi d.ly. 

Conrplaint was mode c. t the Co ti.e .Autho rity a nd its Directors were at 

times stiff necke d , that they were Eastern Manufa cturers and without 

nationc:.l -ie, · oint or ability to . .::;c t one . T·.··o C' nc ':'; i:r:stances of 

this ·ere t::e :_:: el:e r Go::1pany of Jop lin, Iii ou ri, anl:. t h e Vircinia Art 

Studios of Ric:1mond, Vire;i n ia. The files a re re:;}let e with th8ir velumin us cor.1DUlli Cc.·t ions. 

EYJlib its V and·W indicate t he c are exercised to answer and eXJ._)lain 

posi tio!1S t.?J.>:: e:ri in a refusal of t he Meeker c~mpany ' s p l e a , and the 

Virginia Art fil e shows a complete reversal of the position consiste1)tly 

taken b~r them in their p l eas for di fferential s through the 'first year .. or 

fourt e en ont s of Code lif e. 

Other mam:t.fac t urers frr"Jm time to time compl a i ned, f or a moment 

or two at an~r rate , of the consistent position of refusal taken by the 

C de Authority wi th respec t t o indivi dual r equests nnd pleas, b~t almost 

invariably cJ..ecisi ons made were grac efu lly a cc ep t ed. These pleas were )rett 

much of the S$ 1e tenor, a,;)plication s f o r over time , t w0 shifts, apprel1-

tices and wa :::; e C:ifferentials. 

Reference was made above to f a lse advertising by Retailers. An in9811 
-61-

stance of this was a long clr;wn out controversy wi th one of the l arge 

New Yorl: Depa:ctment stores. Checking of E1e tropl")li tan adv ert ising indicated 

t hat at ~:e 1n·ice offered ·ooc~s coulc~ not be of the materi a l described. cmc:'. 

finall ~r .le(_ to 1Jvi thc:ca'.'!c>.l. The ad.1:1inistrc:tion member vras quit e familiar 

with this anc~ co-rr nbora tive. evi dence of this and other simil c::.r trans 

actions ma r b e found i n t he lat e Code Authority files now in the hands of 

the succeedin2; organiz a tion. 

Ste.tistical reports in Ex..."'l.ibit F a nd included in p ac;es 6, 7, 8, 

9, 10, 11, 1 2 of this l1istor y a re by no manne r of me an::; compl e te but they 

g ive a p ictl.'.re of t:i1e character of work done. 

6. Disc·L:.ssLn1 of Operation of Code Autho.1..·i t y as an 

nd~strv Gov.erning Body. 

In c onsic"..ering t his subject one mus t cons tantly keep in mind two 

f a ctors th2.t -for s~veral mon t hs aft e r t he induction into offi c e of this 

Code AlJ.thori t;}T \lve r e ever in the for egr our1d of industry's cons ci ousn ess. 

First: A c onside r able ·proportion _of p r oducti on was i n the hands 

of factori es loca t e d outsi de the city limits of New York, who were payins 

wages much below New Yor:l.~ 1.mioni ?.ed factori e s. 

Secane.: ~e Cocle Authori ty 1 s .own sharp division in memb ership, as 

between Ne'.7 York a11d out of town , with the outlander element feeling 

chagrinect. e.nd WQ+_>s e . over the ct.i visi on of representation mn.de by the 

Admini s t r e.ti o:p_. 

Obvio'l.'!.sly ,this situation ~nacie matters difficult, for each g roup 

found it a l r:1ost impossible t o rise t o the ir O})portuni ty of self 

government encl v:eight dispassionately t he p rC?bl ems g iven birth to in, 

and by t he Code. 

T1e ee li n,:~ existing from thes e factors c ould n ot b e treated lightly and had if ?OS ·ible t o be smoo thed out. The probl em cut s ev e ral 

ways. Out of tovm f a.ctories paying an av erap;e of conside rabl y less than 

ten doll e. ·s par week f ound themselves raised. t o a code requirement of 

f ourt een 6.oll :-:.rs mi n imum, a raise upset tine the ir equili bri urn and 

assurnin;; a cize in t h eir ment a l r eckoning out of a.ll propo rti on. 

The Hen Yorl;;: f a ction f elt, na.t u rally so perhap s, tha t the out of 

t owners vro-Lll c, I incl ways to be a t the Code, not yet reali zinc the searching 

quality of t he po lice machine th2t was a bout t o come into being. Expressed openl y or not, the out of t orm me n sensed this suspicion and 

did not t al-e k ino.ly ,g :i, t • . After all t heir honesty of purpose was being 

impugned before they had a chanc;:e to pr.ove or disprove their eoo d int ent , 

in other wo rcls ~rere c on<lemned before being tried. 

The rep resentative que~tion then became of greater importance than 

ever, for out of t own without a maj ority, were cert ain in their minds, t hat 

they c oul c, no t hope for a fair breal-c anC:.. did not hesitate s o to say. 

ErGo : - Confusion 

expressed. 

9811 

susp ici on - distrust openly arrived a t - o penlJ' 
-62-

The firs t thi ng to c..~o 'V8.S to fL1ct a co nr1on :;round. and.. rJo r k from t~1; t 

Administr ti o:1 L · ·:.,rc., shing t o n had unsuccessfully tri ed it, i ndustry hac..·_ 

trie d i t il Ncv7 Yor k neithe r \''ithout apparently ~e tting anyv7here, but t i1e 

Administr.::-.tion memb e r ealizec~ t hc:·. t unc.'.ern er th a ll t he strife , there ;12.s 

'1 feeli:1g , t h .. -t giv en a fair chance, t he Code was · a heEven sent gift and 

could help all a l ong •.vay upon the ro 20. o::.· renewe d success, such a s they 

had once ~!10\'tn. It ··as upon this pre1nise ~1r t renevted. e.:1d continuous 

effo rt r:as u c: t·.e by al l c onc e r ned. ro1d. resulted L=1. the 11 ge t to::;e ther 11 of t h e 

surruner anc'.. fa.::. l of 1934. 

New ·;orl:: a unionized city had classification, they wanted such included i :c_ the C.O C.e , the y vve re unsuccessful, the open sheps did not wcmt 

such, cor.l c.,_ not .-.ee it, as a pplied to their own pre ctice. ALl felt that 

Se cti on 2 of Articl e IV which treated of s emi-skilled.. .tcl-cen. in conjunction with :;;.>arc:.graph one of t he or D.e r vva r3 the hand nri ting on · the wall 

tha t cl assificati on was the death' s here. a t the fe ast, the ('gre to be 

feared. 

. l\fo t wi t hsta11ch ng the se :ears, the ~ministr tor and his Deputy to 

the con trary notv7i thstanding, t he openly made statemen t of labor that industry was dodgi ng the issue and deli oer tel ' s o, the t :nowledge :that 

C-.)lonel Lea .~.1 C'. C1 opposed its i nclusion because of his realization of the 

i mpossibility of writing a definition, the Cocle Autho rity did make an 

ee.rnest , sincere effort to s e t up and define the term. It is unfortunate t h:- t mere written reports canno t give a tru e p1cture of t~e labo r 

and t unno il thet wen t int o t h is, t he time consuned. Code Authority tlembers felt t h e-- 1;1ere charged with a "..u · which they tried to c c:.rry out. Un.-

successful, of course they we re, nevertheless they tried. 

Good C<:Uile from it al l, f or more t han any othe r fa.ctor it brought to 

pass a grec:-.ter res:::cct for e c:.ch ot her anll. a willinc;ness to see t he other 

fell ov1 ' s vier:·Joint . 

Discussi on f this and othe r l abor probl ems resulted in the public 

hear .i.ncs of J 1.u1e and_ Jul y 1934 and the .:_)ro tract'e d negotiations respecting hours , cl assificati on and wag es the t never we re settled at the time of 

the Supreme Court ' s decision on N. R. A. 

It a lso had hearing upon the strike c e.ll ecl i n · the summer of 1934.: 

which gave B;reat i mpetus to the mi~ration from Kevr York started some 

years earlier. 

This mit;r a ti on brought i n its. tra L.1 che.rge : by the laoor union a 0 c.in 

st two :. all11f;: cturers uncler Section 7 ( a.) of N. I. R. A. , in th: t the 

()Wners h2.c1 refused c oll e ctive bargaining. These complaints caused f'lLrther clistres~J and consume d a Great amount of time upon the ·part of the 

Code Authority and other int e re ste d parti e s. It \vas f e lt that the 

chc:·.r ges ne r e not justifie d :for t he collecti v e agreement had expired and 

the Union to enfo rce its deman ds had call ed a strike. 

In one of these t wo c ase s it· developed tha t the partners of the 

concern, beca-v.se of t he ir financial si tu.CJ.ti on vrhich prevented the obtairr 

int:; of s1..1.£ficient banking accomodati on i n New Yor k , had been negotiatinG 

elsewhere for some t wo years for factor:Y" sites an ci. fi na1~ ci l help.' Th e 

9811 
-63-

strike hc;.vii.lZ been called, neGo tiat i ons with the uni on stopped being offered, bul~ accomo~a ti n p r ovi ded they take some 200 worke rs off relief 

rolls, c..ncl , ,o c-_ f a ct ory a ccomodati on manned by e:·;:perienced workers , it 

was na t ural to move, in fact there seemed. no thing l e ft fo r them to do, 

if they uere to conti 1u e t heir business. This case was fi nally disposed 

nf by t he lTc:.tiona l Labor Re lation s Board a s being 11 no c ase " at least 

thc- t is the recollection of the Ad.n.1ini3tra ti on Memb e r. The other c ase 

Gom~what ·. differe:nt and flag rant wn.s decided at;ai n st the mcmuf&cturer. 

HoJ?- e \70 r k in the Beade d Ba.:; s e cti on of the inG:us try was always in 

one's c o11 sciousness and much wa.s done by t he Authority and its Directorate 

in an a ttemp t t o ameliora te home workers' rates qf pay. Exhibit 0 g ives 

indica tion of t he thou ght and time devoted to the p roblem. The matte r was 

not settled. bu t had the Cod e continued it was hope d tha t the p lan laid 

dnwn woul d have b e:.1 tried out and pessibly h ave been successful at least 

to the ezten t thc: t half a loaf :is bette r than none. 

Compliance work was as ha.s been st c; ted in ~"arlier parag raphs of a 

charact e r that VTas constructive, and positive rathe r than negative in its 

nature and General Files, Compliance Files, CocLe Autho rity Files give a 

clear p icture of this. St a tistics g ive only an :i ndica tion of work don e 

(Exhibits::: and S) , 9ne had to live with the responsible officers to 

appreci ate the sympathy , understanding , tactfulness without condonation 

of misbehavi or , VIIi th which t h is wo r k was done. 

Trac-:.e Pra ctices in ge_nera l, discounts and da t ,ings, misbranding by 

manuf a cture rs a.nd ret a ilers , style llira cy, cost figuring, retailers aclverti sins ancl offerings, gene r al welfare , rel a ti onships with rel.'l t e d 

industries, received much of the Authority' s thought , time and attention, 

and results were showing in the last few months of its life. ( See Exhib its 

C, F, G, II, K, Q, P , 0, S. X and_page s -48, .49, 50 , -51, 52, ·58., .5~ and60 

of this history) . 

At no time in the mem("lry of the writer was there discrimination shown 

against l arge or small , ut of town r:>r in town , south and north, east 

or west, nor, a lthough l abor will not altoge ther agree , a gainst labor itself, and this l ast in view of the t ense si tuo.tion of some years standing 

was r a ther rell1arkabl e. 

T• sum up b:c·iefly; perhaps the best evidence of the success of the 

CGde Authority, its paid personnel and particularly its two Dire cto rs is to 

be found in the fact thc-t jus t -'-J ri o r to the Supr em? Court's fa te!ul decisi on a dinner was tendered to the Directors by the entire industry. From 

far and n ear seve ral hundred manufacturers came to pay tribute and to 

_publicly st2.te their belief in ancl lmowledge of the success of the work 

done and t o e},_1J ress tl;'lei r feeling tha t all h~d be en fair and just in their 

dealings. 

C. Budt?;e t and :P,Asi s nf .Assessment 

1. Se ction 6 Article VI of the Co de p rovides tha t : Iembers of 

Industry sl1a.ll be entitled to pa1·ticipate in and cShare the ben e fits of the 

activiti es of the Code Authe rity ~nd to participate in the selection of 

the ... embers t he reof by a ssenting t o and om lyinc; with the requirements 

• f the Code anc:_ sustaining their reasonable share of the expenses of its 

9811 
- 64-

administration. Such reasonc.ble sha re of the expenses of administrr- tion 

sha ll be d.etermined by the Code Authority subj E. ct 1o r eview by the Admirris trato r on the basis of volume of busine c;s and/ or .such other f a ctors 

as may -ue deemed. equitable . 11 

Articl e VII- F. R. A. Labels - Section .. lreads 11All merchandise 

manufacture cL subj e ct ot the p rovisi ons of this code sha ll bea r .an ~ R .• .A. 

label, or aut~1o rized substitute therefore, to synbolize to purchasers of 

said merchandi s e the conditions uncler 'Nhich it has been mcmufo.ctured. 11 

cti on~ .of the same article sta tes i n part the t : ".Any and .all 

members of t he ind.ustry may ap ply to the Code Authority for a p e rmit to 

purchase anc~ use such N. R. A labels, v.rhich pe roit sha ll be g ranted to 

them , but only if, and so lo n~~ as, they comply with this Code. 11 

Se ction 6 of the same article provides: "The hF~ rge mad.e for labels 

by the Code Autho rity shall a t all times be subject t o supervision and 

orders of the Ad.>ninistra t or and shall be not more t han an amount nece ssa r y t o cover t he a ctual reasonable cost t he reof, includinG actual p rin 

ing d.istrib"o.tion admini;;trc tion end su-ne rvisi on of the use thereof as 

herein above set forth" . 

Thus leaving f inancing of C0 de Authority ac tivities somewhat indefinite , hence ther e was apprc ved J·uly 3, 1934 Amendment No. 1 to the approved Code provicling for mandatnry collection of assessments for finru1cinc 

purposes. Orcler- Nc-. 332:-13 approvecl by Sol A. Rosenblatt , Divisicm 

Admini st ~to , Hughs. Johnson , Awninistrat or . 

First financing was by small l oans from incli vicl.u e.l members .of the 

C<:J de ·Authori t;;-• . Money so raised served to pay the small costs o: terrr_porar 

quarters but did not suffi c e for sala ri es s o th._q t employe es. worke'd { o:: 

some considerable time be:Dore being paid. La.te·r a tempo rary bank l.Jan was 

arranged which served until revenue from assessments and labels came in. 

Fr1rn t hc t point the Authority was always solvent a.1d. operCJ.ti11g under reaso 

able c osts. 

Three budge ts w,ere submi tteci. The first wa;s approved. but stayed, the 

s e cond a r evision of t h e first , cov e ring one ye2 r fr m March 26 , 1934 to 

March ;.;G , 1935. The' third for one yea l~ from Mar ch (-~6 , 1935 to March 25 , 

1936. Of t he last submitted., but a l)o rtion c ov e ri ng the pe riod from 

March 26, 1935 to June 16, 1935 wa3 a ·, p roved, anC:. subject to an ext~nsion 

of the Co C:.e by 0perati on of the l aw , conditionally a_:-)p r ov ed from J une 17 , 

1935 t e March 25 , 1936. 

Peri od. of 

Bu~e .::._:s::_,-._ 

1. 3/26/34 

to 

3/26/35 

2. 3/ 26/3l'.. 

to 

3/ 26/ 35 

9811 

.Amount 

~140,180 00 

133 , 540 . 20 

Date Approved Order Ho . 

!day 28 , 93~ 332:-8 

Stayed -

June 9, 1934 332- 11 

July 16, 1934 333-14 

(Resubmi ttecl) 
Period 

of .Buc.{s.;e t s 

3/ 3/2&/ 35 

to 

3/23/36 

BudGet 

Buc.,_:;e t 

BuC_t;e t 

l o. l. l/3 

Ho. 2. l/3 

No;. 3. l/4 

-65-

Amount Da t e A:Jp roved 

fjj llO, 641. 00 lviay 24 , l 935 

Basis of Contri butiol) 

of l ); f the dollar s a les v olu.'Tie 

of ( /, 1/.J of the net dollar sales volume 

of l c:1 

;v of the g r oss sales volume 

ESTii.i.AT:L;D I iJCOhiE 

Buc3-G:;e t No . 1 ••.............•....•...........• $149 , 999. 00 

Buc.,I · e t No • .'2. • • • . . . . . . . • . . . . . . . . . . . . . • . • . . . . • 14 9 , 9 9 9. G 0 

Buq;e t Uo . 3 •••.. . ...... ...• ...• . ... .... .•••• llC,64l.OO 

(lst per io ~) $31,540. CO 

( 2n0_ period) 79, ~. 00 

(S ee pag es l, 2, 3- Exhibit Y.) 

Order fTo . 

332-25 

'•· 

At t he e11<i of the first budge t.ary peri od, .find_ing a substantial 

surplus in excess of $40 , 000 in its treasury , the Code Authority concluded to refund $30 ,.000 to industry .and pass ed on March 7, 1935 a formal 

resolution s o ordering , and by 1-iaY 3 , 1935 approximately '$2:3, 000 had 

been )aid. (S ee page 5, EY..hi bit Y. ). 

It rrill be seen from the :forego.ing tha t the Code Author~ty and its 

pai<i officials vvere cautious and watchful i n financial ope rations and 

my own feel~ng as Administration member was that in some dir e ctions they 

were ov e rly so, f o r they . needed the services of a least two extra. men to 

cover t h e South and far We st, .an<i of statisticians to enabl e a proper 

and full statis tica l stud;y· of i ndustry te be made. 

2. Ter inat~ on of Paragraph 3 of Administrative Order X~36 

July 27 , 1934 Acting Divisi on Admi nistra tor William P. Farnsworth 

signed Orde r 332-15 t ermina ting the ex emption conferred in Paragraph 

I I I of Ad.mi11i strati ve Order X-36 dated May 26 , l 934. Opport'lmi ty 

t o be hea r(~ h ad b e en given in no tice No. 236/l/Ol ·dated_ J1...me 15, 1934 

and no objecti ons were filed. There was a t the time considerable overlapp int; in the bag i ndustry particularly with t he Luggage and Fancy 

Leather Goods Inc1ustry and t o s o111e extent vvith the Wo111an 1 s Belt Industry 

and if the ex eq_)tion g ranted uncte r X-3G we re allowed to stand the H?Jld 

Bag Industry bade fair not t o mee t budg etary requirements 

3. Effect of other Administra tive Orders. 

I s it ne c e ssary t o poin t out tha t the constant delay in the issuance of Admi n i s trative Orders approving budge ts were t o say the l east 

disturbing and gave rise t .J much bitter criticism? Industry r e cognized 

the right and need of checking, but certain que stions rais e d, we re deemec'\. 

9811 
- 66-

1 o , of t .. c.. •• inistra ti on ' s business, were resented and this mi litated 

ue;·-i r:t "" 1ot'1 nmctioning. 

It 1 . 0 co. stru tl~ no inted out t hr t what nas being done was for t h e 

n1 otcctio. 0 - the. CoCI.e Authority itself, "lmt none the le s s the answer 

~vcr rr. t ~ .,n~; 11·:1e .:i 0 •7 our in~:u.s try , ei t 1 er VY e ·~ re truste cl or we are not 

an ": "till think .wt1inistt'ation-is· ove r ·r eachinr; itself &'1d in Cl.!lY 

ve there. c~n be no excuse for t he C.e l ays. 11 It is to be remembc reG. 

tl r t in tic lutt 6 r c-:.a.ys t~ 1e c was J.css d.e l a;:r t}1an f.or 1e rl~r but the re 

s ill rc!. Llet-. t he Yionc.cer , Hov; Lon~; oh Lord , Ho ·1 Lang J 

It 1es ori~ inal y -~) opo se c t ha t label s shoul d be so l d. at a })rofit 

sufficie1 t to finance· ·the operati ons o·f the· Co-cle .A.u t ho ri ty. Preliminary 

co1 ferc ces ·:ere ·he ld by the Deput y and. hi s ·advisors with t he Dire ctors 

respectinG this anc upon ob j ec tion ~ t 'Nas c.\.c ter-minecl thc>"t a levy of 1/3 

of 1~; tt)o:1 ales woulcl be efc rabl ~ and t hat l abe l .s should·, be s<bld a t 

cos plus. It was co.lsequently so o r d.ered in Ao.ministra tive Order 332-8 

and the later rc'ler 33,__,-14 , 332-25. Prope r reQ.ll Cl.t i ons were set up, tmcler 

·.vhicl i c~1,_s try orde r ed ancl we re supplied f or ca sh , sufficient for not 

more t~m:1 t wee weelt' s ope r a ti on • 

.. r . • A. Fishe · in his report to the Deputy malle part of t h is hisry , pe~e 3, ~xhibit Y states in det ai l t hat the total sales of labels 

Nero 37 , :.32 , 000 a nd the.t thes~ wer e purchas e( after bids from severa l source 

of suJpl,/ at a ) rice of $lt1 , 884. 00. ( NOTE : Re ference ~.s made to sticker 

labels; tl""~ese ve re only to be affixed to me rcl1andi se already in stack on 

uly 2 , 193~) Industry \Jas required t o fi l e with the authority a monthly 

state1 e t E: c. Hi thout such , labels could not be issued. The use of labels 

Nas salutary serving a s a c ompliance weapon, ancl t o further the layinc; of 

ound tiJ;.s C?f a sta tist i cal structur ~ 

a.~·c 4 ::::xl i bit - gives in cl.etail the income r eceived during the 

perird covered fro. I\i a rch 26, 1934 to Feornury 28, 1935. This totalecl. 

1C5 , 79° . 29 ·.1it:1 a t otal expens e of 65 74. 4 l eavine; a surplus of incone :P , .. ..21.=. 85. Tri s as stat eel in a p r evious p aragraph and on page 5 

xhibit :".·as in part d.i tri'bu.t O.pro rata to inc'..us try, crea ting an ex- cellent ~p rcssion • 

.. . _ _?_r_op_9rt_io__n _of. e_sm~_:r:!."ts C0llected 

T e collectiu. f assessments was a sim le matte r, f or the label 

regult.tions l'OVidc.d fo r a filing of sal es repo rts wi t h the Au thority 

·nd unless t •. e 'lpprov e d :percen t age V\US :pc.id labels did no t issue • 

. at the bewi .in; t : ere ·1us s ome ~~usion , or pe r haps a slig ht 

hold1:1 -.~ ·cl:: . ~til it \7a.s found that dist ributor s woul d not a ccept 

crch c Ge -.'1t out labels. From then on , there wc:os no trouble , co l1 c ·· · ·• (I.e fro1.1 OJ~J of industry, vv ith a smal l amount , $6009 

,_c0llcctible , a1 d this ~e d all the way t o · the e nd. 

0 eEati_ons_ .Qf_ oc~. e Authori t '_il__ Re l r>.tion t o its Other 

811 
- 67-

I n a11 eo.rlier paragra}Jh of this chn.pter it ' vas remarked t hat t he 

Directors rrere overly cautious in their financial operations. This p erh ops should be qualifi ed by ac.'..ding , tha t they needed to be bec;-,use of t h e 

make up of the cc e Authority. At the bet;i lmint:: of this history it was 

P'Jinted out t ha.t nev er at any ti :~e had t he industry thou ;ht it ne cesso.r:;-

ti really kno n itself, t o obtain a knowl eC:.g e based upon f a cts. N0t hEwing 

been accustomed to the i dea, one hac"' t o proach the matte r c i rcumsp e ctl;y, 

with a f eel inc tha t cne ·h a ci_ perforce t o crawl before a ttemp ting t o wal k . 

It must not be thought that ove r cauti on to the point of hamstringins was 

the orc'\.er of the (_ay , ·but ne ithe r mus t it be forgotten that a s t a rt from 

s cra tch, _1e c ess a rily entails much great e r energy t han keeping a go:..n_; 

rnacnine Elovin.r·. On the whole t~1e fina ncial set up was good and did p ennit 

co:npe tei~t and fairly ac'\.equate ope r a tion. 

D. A&ni ni s trQtion ~f th ~ Code 

1. Amendr.1en t s 

The1·e v1e re a m.1.rnber of Hand Bag 1Ianufacturers making p r 01luc ts 

othe r them Hand :Bags, principnlly 1 uggage and fancy th r goods. T~1ese 

claimed t hat j u risdicti on belong ed to the Luggage and Fa.ncy Leather Goods 

Code since from their point of view it was a more advantageous c ode under 

which t o o:? c rate. With the s omewh a t indefinit e financing provisions of 

the Ladi es IIa11c.'\. .B8 g Co de it was necess a ry t o clarify the situati on. Aft e r 

discussion ~ith the Assistant Deput y it wa s determined wi se t o move for an 

amendment to the Hand Be.t; Code an& such a1hendment No. 1 was writt en, lJassed 

by the Coci_e Authority, s ubmi t t ed to ~ t h e Adrnini strata r , o:)po rtuni ty to be 

hearcl g i ve11 0 rc er 333-12, and fina l. ly a_)p roved by Orde r 332- 13. 

In :)reparing t he order f or a 1.>p r oval t i.1e As sis tan t Deputy noted 

t hc: t t j18 1I~1d 3ag Code Authority would be unabl e , d1.1e t o overlappi nc; , p rovide ·sti.fffcie·11t revenue t o mee t its budge tary requirements. From t hc:.t 

po int on the re was no trouble in financing. 

T~10 const antly : recu rri ng ques ti on of the semiskilled ci_efinition COii1in-; ·np for public hear ing in June, a spe cial me eting of the Code 

Authority wc:s held orr the day o.l. : the a djourned mee ti ng in "Washing ton, J u l y 

9, 1934. 'ihere was introduce d a resolution, l .s_ t e r C8.rri e d , tha t there 

be deleted from t he Cocl e Secti on 2 of Article IV , and further tha t Sec tion 

6 of Articl e IV like wise be rel!loved. ( See minutes of meeting No. 1 6 July 

9, 1934 Gen erc:.l Files) Labor made ·, strenuous objection to thesG r eso h 1.:-

tions an( c ontinued so to ·do in the ensuing months. An order ri ~ this 

was drawn up l c t e r i n the year. 1934 , but nev e r consurrunHt e d due t o the 

interlock i nG q-c_estion of wage s an<l hours no t heving b een settle d , a ncl t he 

matter drag.;;ed a l rmg u..n.til the wint e r 0f 1934 and 1935. February 7, 1935 

notice of l1earing was issued (No . 367-F) and· this subj ec t was include.d 

wi tp ot11er propr,s ed amendments submit t e d by the Code Autho rity (Se e Transcript Public Hearing· F eb r u ary ·- 2$ 1935 pa es 86 t o 224). 

A serious probl em affecting all consumer goods industri es 

particularly r.r~1. ere such a:ce distributed through c:lepartment .stor e s. i s 

that ef vvhc.t is known a s "Return Goods 11 • Apparently orde rs p t a c ed by r etail merchants hav e not a ltoge the r been c onside red 11 fi r m11 orders, the re-. 

tail e r, i f s o be he h c:.d. changecl his mind or found his judgment a s to 

9811 
- 68-

snlabili t.,- 1 ot so ""OOl , reserving t h e right to ret un e;oocls E>.t will. At 

0:: e ti· c , t: i oecr.1s n~ t to hr· ve been the CR.se , no11e re ul~ni ng soods , m1l es:.: 

for th s1~b 3 tnntinl c c·, r;e t he t they v1ere ~ up t o sc:unpl e. Of l a te ye 2.r s 

however mm.'cJ. c . .nts :ave not hesit c-. tecl t o r e t u rn .=;ooL-:.s for a l mos t any ca1.1..s e 

11ot,··i t~ stci1c'L1,:-; t ':ey 'Je re 1: c·(e up b·r t he :11c:nuf ec t urer i i.1 c ood f a ith 

c.• c... s} i_)_)e('_ rc con in[~ to i nstn,_c ti ons. ~-~e rc:Z.1ants , i f t hey foun d business L1 c: sh··,n , '"" ·1e ri och c oocuren ce, hc:u:-;_ no corJI~J unction ov e r p as-si ng 

the buck to ~ ·c r.1an~facturer , in other worcls eXJ_1ec t int; t he manufa cture r to 

:)D..Y for hi::; , the retr.i l ers sins of omissi on o r coGE,JL; si on • . In t he go oc1 

~rears \7i th __ ~oduce rs . retnil ers o1. C. sel dor.1 {~ t r:'..Wa~·, iVi t h t he p r c.ctice 

· 1 d never Hi t h the ;Jell or r;anized a:nO. f i nanced. r,lanuf c.c tur er, but in times, 

such Ds we ht."Ie b E' en havin[~ t he l)r ti c e of re t urni ng c oocls by ev e n t he so 

G:r,.llecl re )1.t abl e out l ets has ren.ched. monst rous propo rtions. 

The Ean{ a~ Code Authority l~ led t :i1e p r obl em in earnest, and we r e 

deoiro'Ls of DI.e: d.iiv~ their Code so the..t it woul C:. be prohibite d, but f ound. ' - it [' n impossible t n.sk t o find a sat isfac t ory ns~·~ er so t h c: t no a ctua l 

c:.mend.Jnent cove r ing this v1rs ever pres en tee. (See na_;e 2 minu t e s, meetint; 

'To . 12 •. GenerP1 Files) . 

At.{.-un t 2 , 1934 the Code Authori t y a t :11e etL1t; lifo . 18 passed the 

follo in~ reso l u tionJ 

11TiesolveC:i. t hc:t Section 1 of Ar ti cl e II be 

en:e:_te c'.. by inaert in_:; t he ,_7or c"..s ' shopping 

bc.:.;s , bc-.thinz bag s , handke rchief bags, 

vani t3' bo:;;:es, cosmetic bass, utili t y bc-gs, 

l:ni -·- tL1_:; 'Jags ' in t he :first sentence aft er 

the r:or(. 1purses 1 ~o t hat Section l of 

Arti cle II vill e~d ns follows: 

''The terr.: t nc~us t1·;y 1 c;,s l..S c1 ~ €'rein incluc\.od 

the ma..n1.lic:.cture of La ie ', liisses, ru1d 

c;1ilch'ens h[1J1dbc .gs , oc~:e t books c:.nct purses, 

shopping ba , bathing '): '~ , hnndlcerchief 

ba~?; , vanity bo.·es , cosmetic ~g , u tility 

bags , knitting ba;_3s , Eranuft, c t ured of any 

mc..teriCll of a ny ~dnd or nat ureot. The term 

~ L1t"J..1.s t ry 1 shall na,t incl uc.le howev er , the 

. am:.f c:..ctu.re of h anc.b ags, pocketb ooks , purses 

c;nC .. nes:h bngs manufactured in nhole or' met a l. n 

This '12-S su bmitted to the AdrJinist rHtion and. aft e r much discu s si on 

r ith the interested p~rti s ~as not i ced ror hear ~ ( 367- E De c ember 

19 , 19 ~4 ) D1C hcardJ anu ary 9 , 1935. , 

At thi~ 1~a ing , it i · to be noted i n the Trans cript, that as an 

ag eerncn t lt'IS 2 0out t o be rec•.chod betn een t he opposi ng parties a s t o 

VhlCh of the ul'111" C'l'ticl es brought in ElS ev i cl.ence shoul d be included i n 

the propos~d- ner. definition , it was founcl necessary t o seek Col one l 

Brady' s o~n: 10n ( ~iee pa· ·e Li.B rnransc'~· t p · 1· JT · 193c:: m- • ..... :.:., - ' -'- J.l p ' uo 1c .ear1 ng , Ja.nu a r y 9, . .....) • _ ~ e:m7 Oiles seeming surprise , Col onel Brady r ende r e d a sweep -

lnt; dec1n1on t~e t all bags on e.·hi bition uere Rand :s~~··s Thi <" br~a d statc . .1e11 t ··as clisconc t · 7 ~ t ' , . · c.:.,_, · " - e r 1no , C.tea ec .. uuch U1scuss1on , brought ab out mal1Y 

9811 
-69-

conferences anc: it ;;;ras not 1m til alr.1ost the close of the Cocle tl1at e. 

s tisfactor~' c1efinition 'r!l ::>B ~J l'e:pared anc1 subaitted for a1Jproval. This rea(. : 

11 Th e term ' industry' as used here in includes-the 

mai'1UI 2.cture of l ad.i es , misses, and children 1 s handbags , lJo cket- books and purses , shoppin6 bag s , 

b:..thinG ba.:;s, handkerchief bass , kidd.y ba6 s, 

v0 .. ni ty boxes , · cosneti c ba-gs , it ting ba.:;s, manuf c.--..ctured 0-f any r.m terial of c.ny k ind or nature. 

"The te rm 'industry', hcH'.rever , shall not include 

artic:i. es cormiionly manufactured by the Lu. age and 

:l~cy Le;; ther Go0 d.s Industry used: for traveling 

·J1E":,_;o ses, no r ove:r-night bag s for whatevEr purpose use0., nor eny article manufactured for men's 

only, nor the manuf c:. cture of hand bags, po cketbooks , lJL:.rses , v ani t;y c a ses ·and mesh bac;s manuf;;'.ctured. in whole of metal.;._n 

The Schechter case decision having b een made the matter naturally 

dropped. 

The mim)_tes of meeting No. 18 eil sn note tha t the Code Authority expressed. itself in favor of amendi ng the Code vii th respect to Price Grou.pi:ags 

The follonihg· excerpt' from minutes of that meetinc , page 2 and 3 , and 

Exhi hit E i11ditate the reasoni ng p~J liec1. as does ~- later brief writ ten 

by the code Director ~ittenthal. (See Exhibit Z) • 

.At this sc-me meting ~To . 18 , j;he follo'\vinG resolution wo.s presenteD. 

ru1d pas se·d: 

"RESOLVED th2t. the. Qo d.e of Fair Competition for the 

Lndies 1 Hanclbat; Industry be amended by 

inserting e. trc.;.de pre: ctice rule whi ch 

shall be l::now~1 as Sect:ii..on 16 of Article VIII 

to re·.?.d as follov7s: 

11 ' rJo r.:J.embe r of the ii1d.ustry shall •repair bags 

v,ri thout making a reasonable charge f o r such 

revai rs, VI hen SUCh bags ShOW that they have 

been in use . ro membe r of the industry shall 

pay any forwardinG charge s for such repe.irs. 11 

This propose.l led to c onsid e rable ciiscussion and cpposition but 

was fi · all~: presented i n the fol oHi ng f orm 

" ro member of the Industry shall pEly for or rebate forwarding charges 

incidenta l to the return of used hanclba-"s , or repair used handbags without 

making a Che.rge for S2!Ile based upon the c ost of labor and materials required 

for makinG such repair. This ~.; rovision shal l not a) ply, however to repairs 

attributable t o defecti v e worlananship or mat erial s. Actual forwarding or 

transpo rtatiol1 c ht:- rges shall b e sep ~ately itemized 0 1! invoice. 11 

noti c ed. for ~1ub J.ic he<:>ring ( 367 - E De c ember 19, 1934 hea rd Jp.nuary 9, 1935 

ap_Jroved ~e.Y 33 , 1935 and t o be lmown as Secti on 16 of Article VIII - Orccer 

332- 24) . 

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The reasons back of this ~ov e a re int e rest ing. Ir- t he rela tionship 

et~cen u r oducer and selle r , t he re has been a ee li ~g that much buck .. passi1g ~as taki ng pl ace. 

Times being go od , ·profits ith the p r oducer excel l ent, not much 

attention i s pai d to such matt er s. Reta.ilers finding merchandise movement slo11i ng up , t ake· advantage of eve ry t h i ng possible, no matter uhat, 

to aui cken sal e s and more particularl y r.hen it can be done at some one 

s~s e:c·1ensc. Undoubtedly in good t i mes ret a ilers \?'Ould not return merchanui se- to a manufacturer for r epair unl e ss it we r e p alpably faulty, but 

of l ate .,rea1.~s faults obviously cleveloped as a : r esult of 11ear or carelessness .1ere charged to manu o.. ct :i.. . The r etailer ho11ever, it is claimed, 

charged his custoner for ·rcp::l.ir ·but on t he other hand asked the original 

p roduc er to make such at no cost to the r etailer. If these statements 

a r e correct, and we a r e assured t hey a r e , one must admi.t it to be a reprehensibl e p r a ctice and anyt h i ng of a l egitimat e nature looking to11ard clean 

ing t he stable of bad nracti ce is t o be desi red. 

(Ref er to ~ag es 98 to l03 Tr anscrip t. Publi c Heari ng anu~ry 9, 1935. ) 

De sign Piracy is an evil ':"!e have al uays had ni t h us. The brains 

of t he creative 1orld as nell as t hose of the l egal (pat ent) f~aternity, 

have been turned ove r and over looking f or a check upon the light minded 

bentrr, 11ho hesit ati ng t o illegally ~ce one s money or property, have 

not t hought i t amiss t o steal ideas from t heir more creative brethren. 

All governments. have over t he years t a.ckle.d the subj ect, and as far 

a s one cru1 quickl y dete 1. e, have not · been dltoge ther able to find a 

sa tisfactory ans11e r. Cer t a i nl y the public hearing held January 9 , 1935 

developed t he di fficulty of obtaini ng a mee ting of mi nd s. (See pages 

68 to 98 Tran scrip t of Hearing ) and it is Tiell t o look at Exhibit ~ 

11hich give s an outline i dea ·of t he t i me and t hought put into this by 

the Co de Aut hority and i ts off i cial s. 

The Admi nistr ation had not made t heir decision a s to t he advisab ilit of including this a s an aoendment nhen t he act ~a s declared void 

and so the atte~ r ested. 

The minutes of Code Autho rity l.!ee ting s indicate tha t at meeting 

Jo. 2l_ hel d Sep t emb er 27, 1934 a proposal t o amend the Code by adding 

a sect 1on t o be lmorm as Sect ion 8, Art i cle VIII cove rir 0' Destructive 

Price Cut .ti ng as ma<ie but Co de Author i ty· off icials stat ~ this 1ras 

ever pre ssed to a conclusion. 

The mi nu te s of t his meeti ng are not appar entl y i n our orm files, 

but the folloi7i nc. 11as taken f r om tho Co de Au thority Minut e :Oook. 

11 Proposal to amend the Code ~,. addi ::1.g a section to Article VIII 

to be lmo\m as No. 8. 

11 D t t · p · · " · c s rue l. ve r 1ce Cu tt1ng r mean s ·of cove ring any metal 

ce·;.te r frame , pocket w.d coi n purse ith f abric materials or 

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leather, or the lining of any framepocket 

or p1.use ni th leo.ther in handbag s selling 

at less thc:.n ~) 24. 00 pe r c1ozen i s m1fair 

comy;ti tion. 11 

Earli er in this history it wr: s po int ed out tha.t manufactur e rs having 

gone as fa::c as they co1..,ld with com:9e ti ti on based upon l abor costs, be can to 

add gadge ts, thus starting a ·race, destr~ctive of sound practi ce. The 

above proposr.l V'as a first step lo oki ne; t oward the building of a sane r 

view poi11t. Na turally the cliffering view point B,J11ong manufa.cturers 

themselv es o:'fe rcd difficulty in reconc.ili a ti on and it was decided to lay 

the subj ect ovel' in the hope tha t as time 'went on ihdustry vvo uld come to 

a rea.li zatio11 of better manufac;~ uring en d selling practice. 

Fi:omenor:,, here as in all othe r industries whe-re the practice is 

followed, was quite troublesome , although but a relativel y small :9art 

of the inQustry ope rat ed in t his mqnner, viz: handbeading , hcndcrocheti ng 

handembroid.ering and until July 1, 1934 handsewing,. AfteJr July first this 

last was to cease. 

One c"..o e s :not .ne e d to enlarge upon . the indecencies i sting in this 

character of incnstry, nor the diffiuclties surrom1ding attempts to 

govern it. Lab or insists it cannot be done and ther efore should. and mu s t 

be O'lltl e::·red, which is easier said t han done. 

The Code Autho rity and its' Dire ct o:c· s made great effort t o meet 

the si t ua tio:1 and :9resen ted tc:> the Admini s trc- ti on a rather comp rehensive 

p rogram looki:;v~ to\"iard at least a parti a l ttem~) t to bring decency and 

order int o being. 

In the files of the Legal Division the re is a copy' of a tenta tive 

arnendJnent to Section 8, .A;:'ticle IV. for the purpose of establishi ~ a 

commission wl1ich shall establish ~n ini um piece work r a tes for handbeading, 

handcrocheti :ag and handembroide rin·g. This is dated. June 2 8, 1934 and se ts 

up tha t 11 no membe r of the ina:-u.stry sha ll compensate h ome wo rkers at less 

than the piece wcrk rates established by said Commission, said Commissi on 

shall estC'.bl i sil p iece wo rk r.a tes which shall be equivalent t o a minimum 

hourly rate of 25¢ for wo rkers continuously engaged. Said Commission shall 

be suppo rte d by members of indus try engac;ed in the manufacture ,Jf handbaes 

by means of handbea ding , handcrocheting and handembroidery, such members 

of i ndustry sha ll contribute to t he support of said Cormnission by a method 

of assessr.1 e11 t to be approv ed by the Admin i s trator,. n 

There i s t o be foun<;l · in 1..;xhibit 0 a r a ther comp rehensive brief a11d 

other C.ocUi~len ts cov e ri ng the subj e ct and a discussion of it on pages 123 t o 

132 Transcri t Hearing of February 2B~ 1935. 

u~1e 21, 1934 the Code Authority passe d a resolution a dopting the 

report referred to in the preceding p a rag raph and instructed t he Director 

to prepare t:1e. 11e cos s·-ry resolution end forward to the Admini s tre t or. (f.Iinu te s 

meeting N0 , 12, ~ge 2, Ju.ne 21, 1934) 

While these minures are not definite a s t o the intent of the Co&e 

Authority ni t h r es~1 ect to preparing a n arnendmen t to the Code, it was so 

intended <mel_ the matter came u:p at the Public Heari:.Jg adjourned from 
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J une 7 , 190 , to July 10 , 1934 anQ reference to it is to be found in 

pa5es 3~0 to ~1.::, 447 to L52 c>nd i n t he supplement (complete) of the same 

he~ rit ·• 

Labor strenuously o~JlJor.;ed the proposal on t Y!o g rou no.s first, home 

ork ilt <'11 :Lorrn is iniqui t aus end. ca;:'.:'1ot be · controlled a nd seconci. the p roposal set U") c>.:1 hm..r rate of 1

)ay lJYJer than called f or in the Co<.1e; 

A reprcsentati ve of t l1e Wo 11en 1 s Bureau, DeJ!.?.rtment of l abor also 

c-ppeared in OlJ)OSi tion , pe.r ti OJ. a. :.~l y 'l' 'i th respect to the so called 11 r, ytr...-

ical rate of 2:5¢ per hour 11 ~J rnpos d, r:nd on· the further g round the t their 

recorc.s cl investigation showed, tha t many of the skilled home working 

women vrere ec>.rninG; a r ate hit;he r thc..n that, further that home work 

C"'nnot be l)O l iced c nd ought t o be abolished. (Pa t;es 374 to 379 Tra..nscri ~) t 

Public Hec>.rL:~ , July 10 , 1934) 

T e ~tter never r e=c: clled. a conclusion ·oein(; more or less inter -,oven 

with the entire l abor provisions , n eve rthel ess t he Code Directors rnac-:..e co nsistent effort to bring c>bout C?, be tter state of affairs. 

February 7 , 1935 notice of heari ng was J_)Ublished(No.-367 -F) 

and the her> ri:·:; t oo l p l ..., ce befor 3 Colonel ·."/c:.l ter h~anr;UJn , Deputy Admini n tr.:-.tor 

Febru8ry 28 , 1935 to consider the f0llovrins proposed amend..r.lents: 

9811 

A~ticle III Se c t i on 2 shell rer d as follows: 

n·,ro ,erson em:;)loyed in shi }?p ing , clerical or 

IJf_ ice vro rk., Ul11ess he i s employed in a man~ 

a.::;eria l or executive capacity and earns .not 

less t~ a n thirty five ( i35 . 00) dolJ. P. I'S per 

-,eek , sha.ll be permit tecl to wo rk in excess of 

for t y ( 40) l:ou-·s ~)e r week averaged over any 

one mo nth ~er od , pr vided, how ever, th t a 

j_)C'Xtner, offic e r, clir.ector , or stockholder or 

a. merJber of t he L1c"..ustry enhoye d in productive 

·l abor, shall be considered an employee for 

tle ~urpo es of t h is Code~ and shall be subject 

to the l abor p rovisions thereof 11 • 

Article VI Section 8 (c) sha l l re ad a s follows: 

u- · · b f th •e c 1 mem e r o e Industry shall keep accurate 

<me complete recor6.s of his, their or its transa ctions in the inG.ustry i n re spe ct to wage s, hours 

of labor , c ondi ti ons of· employment. _numb e r of emJlo~·ees and other matt e rs· necessary for the effect112t i on of t he Code , and. Title I of the National 

Ii1C'.ustrial Recovery Act. Ea ch member shall furnish 

acc:.rc.; te reports bas ed upoil such records covering 

s-.. ch mat t ers l'lhen re(p .. 1.ired by the Co d e Authority 

vr the 1ational Industri a l Recov~ry Boc:rP, •. If the 

oc~.e Authori t ;>' 1r b1e l ational Industrial Recovery 

Bo~rd S~l.?ll determin~ that doubt exist s as t he 

.?CC'\J.re c of any s ch report , so r:mch o:' the per-
-73-

tinent book s , r e co r ds and pape r s of such member 

e.s may be r equireo. fo r t he v e rifica ti on of such 

re Jort may be examine d by an agency agr ee d upon 

b e t wee n t he Co de Au t ho rity a nd such memb e r, or in t h e 

e.b :-: ence of a n a g reemen t, b y an a_gency alJpoiDted by 

the Code Authority a n d app r oved by t he N2 tiona l Inc;_·ustri e.l Re c overy 3 oa rd. If a member of t h e Indu s try 

shall f ail t o fu r nish c ccu r a te rep 10rts , covering any 

of h~ f or ego ing matt e rs when re qu ired by the code 

Authol' i ty or t he .rr8.ti ona l I n clustri el Becov e ry Board 

such member sha ll make avail abl e t o an a g ency 

E_1}?0inted by t l1e Code Au~hori ty wi t:p. the app roval 

of t he Nationa l Industri a l Recovery Board. s o much 

of t he perti nent book s , reco r ds aJld papers of such 

1.1 ember as may be require d by t h e Code Authority 

:lith r e s_pe ct to \'lages, h our s of labo r, conditions' 

of eiTilJl oyment, number of emp l oyees an d othe r ma tters 

necessa ry for the effectuati · n of this Cocle 11 • 

.Article VII Section 11 to re a d a s follows: 

11Ko nember of the industry sha ll g r ant c a sh 

eli scow1ts i n ex ces s of 3/10 E. 0. H. Ex cepti on on 

.:;o oc-:.s sold up to a nd_ includL1g $27. 00 a gross, no 

members of the i ndustry shall g rant ca sh discounts 

t n exc e ss of :9,/10 E. o. f. Anticipa ti on may be allowec,. a t the r a te of ~ per annum. No membEE' of the 

industry shall g r a nt quantity and/or v~lume discow1ts 

of any na tur e n. 

Add a n en secti on t o Article VIII to be known a s Section 16 to read 

a s follous: 

11Fre e De ~ - Combina tion De a ls no member of the 

Indu stry , sh a ll dire ctly or indirectly give wh a t 

a re kn own as 1 free deals 1 or 1 free merchandise' 

o r 'comb ina tion d eal s ' whereby a join t total price 

i s char g ed f or handba.::;s along with o t he r merchandise 

All bills c.nd invoice: s in nhich hanclbar:;s c.re one of 

the it ems , shaJl set f o rth sepa r a tely and definitely 

t h e charr;e of t he h andbag al one ". 

l'Jei t he r of the se .Amencl.TTient s were eve r approv e d a nd were s ti 11 II in 

roces~ 11 when the a ct cea s e d. 

I n a.11 earli e r chap ter menti on ·was mad.e of s trife vvi thin Uni on nl s 

r e sul t i11g i n e. compl e t e ov ertu r n of officer perso1m e l. 

The most c ol orfu.l of thes e of f ici s.l s., the mo st p ersuasi ve left U11ion 

ranks t o t cke ch.- r.:;e of Labor Rel a ti ons f or the t t.en l a r ge st manuf ct .r el~ , 

·.;lc rri s o/h i t e l at er Styl e cra ft Bag Comp a ny a t a sal a ry of ~) 52, 000 p er c=mm.1P.l. 

He l c:.ter r e j oi ne d Uni on ranks and a ft e r t h e bri'ak in his Union decided. t o 

open a f a ctor:r, f i nanc e d a nd opera t ed. ·oy mP.n of t he craft a nd fellow w1i onists. ::Zc-,ch of t he men "Lm u.erwr ot e a p011tion of t he cap ital needs, an c1 e c:_ch 

9811 
- 74-

0 c . , J j_ r: ,-:; ~ 0 ~ ~ l-: corrp.".ny c.nc the sllo·') "'ns co:r.~uc t eo. ns a coo·oerative . Still othe rs r i o. li!:e· ise enc'. t 1

1e il1C.ustJ:"'T ·::as fE'ced. ···i th a 

br ~-::C.o· ·n of hour scher~ules b:r U1e subt.er.::uge of !'len clE>.imin:r; to be c ompc ny officers. ..J:e;nce the _Jur:Jose of the f irst Jropos e.l. 

Again in f'n earlier ell[ Jter it is :·JOLltecl.. out tha t this in<iust r y 

uac not rtE•tisticnlly fPct ~inee~, no r e~ liz e6 the va lue of such mnte rial 

The Code in its a::.llJrove{ form •:as not E>.c.equote., no t c-.s e:·:1;licit in 1is 

respect c9S it mi <sht have been , mmdnfj; it if ical t to obt a in necessary 

:Jertinent informntion . . It \'[ ~. s fe lt this ·vro·o oseO. chanf:e '::a s necessar y . 

A ~H· '"e '·--ac.; l;Jenc.ing L: tlle set u:o of t :1i s Coce 1 s definition, also 

ne .:;otL tions ·fo r c cor;sollc,a.tioi1 ot a ro i~ th FJ t ·had be e n ·oart of the 

Lur;;<' ··e In d.ust rr •. i th the _ Ham'.bn: Coce A1.ithori r ~o.O. ·been bout concluded. 

In tlwt g rou):> se .l lins terr.1s "tao been estr-: blis.1ec'i. 8.nC" ··~ i thout chan:~ e for 

meirr years. It --;:- ~. necess.::.r·" t :1[' t t:le ~ro <Josec. C'Jner~cme nt res:9ecting 

term!: o:: o:~ou:}lt be:ore t'~e AC:T'lin stl~ tor for .::;rnrOVC'-1. Thi s servec. to 

:~o ven the ·-ho le cuesti on of Discounts - s ee ~Ja.ces 19 to 83 of Trai1 scrip t 

of {ee:rin~ , ::!'ebru.!"1r-.- 2:3·, 193:) . 

T:1e ::'ree Jeals - Combinqtion DeB.ls uro-)osr..l r:o ~ ielt nec ess n r:r b e -

c~use of the ~r orin~ deMr~~~ ~y ~eta lers f or a l1 s orts of free th in~s, 

ir.iti:-ls for -;~~a1yle. It 1:as but nnot:1er forr.1 of ,'-- )~J in ;; the {_evil 

<'ro,m c' the 'stump . See pa~c;e s 83 to 86· of the 'Tr cw--:sc ri··J t Public ;rea ring, 

~,eu'"'UC''f'' 28, 19'35. 

•' . I n conclu~ing thi s chE Jt c r it is e ll to stete thf1.t the t "'o 2Jl1en d- . _ 

ment c; e:,YJr ovec1 on d. those ") r O•Iose(. l1e.o a :;qo c!. effect upo11 industry. It 

· rs ncde :mo•·n to i nC:ust:-,. b-r J":lblice.tiol1 to.n r1 ··ord of mouth , ,~ho: t the 

Co d.e Authori t'r \7c:.s G.oi ne: and there cene about a e, lin : t hc9 t their Code 

Authority 7CS on its toes, kc1dir:_;; troub!_esome --)ro'9l ems in a )ainstf'.~cing 

thou~h tful manne~· . i~ l (,i c not o ---; r ee in c3.e t a i 1 ~;i tb conclusions rea ch e d. , 

out it '-rc:.s felt 2nd beli eved t!1at rLc;~1t e1in1:i ng bacl. .been develoDef. '.lith 

a quieting stE>b iliz~ng effect. 

2. Int erpr etations 

(.:.) The r e rrFLs but one inte!"'p r e tation made unde r this Code 

(Admini str<ti ve O:C-e r iJo . 2·32-10 ), .a.at e d. J une ·s, 1934 sig ned Earl Dean 

Ho• ard , De,;ut'r A(mini str eto r anc: Sol A. :'1osenb l ntt , Division Administrator, Division ro. 5 . (See ~:J1 l.l it S.) 

The o_uestior. r['ised -- as t lw.t of the inc.lusion of a certain 

urocesr of me-: i.1U.factu r e , the lin~dng toge t be r of mme r ous lJi e ces of leather, unoer the term 11 hand croc;.1eting11 • Could it have be n so included t 

follmreCI. thc.t under Section 1.0 of Articl e V, such ,_· ork "i ould have been 

uermittee in the noMe . 

SiPce tlle ir·te! -p re~ot Oi.1 c.i d '.10t n~ luc1.e .it under llhDnd 

cro hetin~n it "Jec me n _0rocess for,bi f.cl.en f or h ome ,-·orl--: .. 

nes 

9811 

(b) Effect on In dust~r 

I believe some auest ion .. o.c: l a t e: r[' i sec~ <:'.s to the sound - of' t11i s o.,...,in1· on. So"1e tho ht · t · t ' v ,, -ug 1 a \'1 se 11ing to ho.ve included it 
-75-

under Hand Crocheting , it being a natura l operc:tion for h ome '.:ork . On 

t r e o .1e:r .1cnd it is G.ifficult to s ee 1o : by any stretch of the imag inc?.-

ti on it could b e conside re c.-;_ a s 11 d croc:1eting 11 or E c omi ns unC.er such 

a g enera l headin~, for it is a totally ~ifferent p rocess. 

(c) Discassion of V~lue 

The Ore er is e::ulici t e n a. there se ems no fu:>:" b 1e r co1Tlr.1ent 

needeC. .. 

3. E~:em tions anc. Stars 

1: o e.xer:mtion, ···ere grP.nt ed 1.mder this Code. The minutes of Code 

Authori t~ meeting s an<i our ol."'n g ener0.l files, co-- tain mc?ny r e ferences 

to, and. <v';)li c c.. ti ons for e~ em ti ::>n f. c? ncl "D ermi ssions to .,.. ,o rlc overtime, 

em~l~ r lea~ners, ~a e differentials, ~articulnr~r a Sou t h ern rat e , apurentices, ani to ·.·ork t r·o shifts, out the Co de _ uthori ty rejected a ll 

such on the broaf genera.l ,-:::rounC.. t11C'l.t con ditions in the industry di d not 

narrc:>nt n~oval. 

One oublic hearin-g Pas he ld Lac• 7, 19~ 4; (l o. 367-A), unon e..p·olicc- -

tions for e ::er'l'Otions b•r:-

Huo ~on Leather Goods Co., Inc., N•rc?.ck, 1\T, Y. exemption Art . III, Sec. 

2, :: ncl for ·1erT1i ssion to employ l.ea:::-ners in C\. ccord rri th Article IV, Section 3. 

G. R. Godfrey Compan r, Ge:,rdner, l1ass . 3J:emntion from Article III, 

Section 1, and Article IV, Sect:ions 1. a nO. 6. 

Parason i· ovel ty Bag Co. , Inc. , 

Uneeda Belt Co . , Inc. , 

1Je'.-be r g Handbag Co . , Inc. , 

Licht & Kc:.plan, Inc., 

all of 11 bur , ·r. Y. Exemption from Article IV, Section 1 a nd to employ learners, Article IV, Section 3 . 

St r nd Le a ther Goo&s Co . , Inc . , !;e,.: Yo ~, J.• . 7. to employ learners, 

Article IV, Section 3 . 

Virg inia Art GooC..s Studi0, Inc., 

L~rnchbur , Vi r g ini['.. 

~a e Differential . 

Und.er orders 332- 4- 5- 6- and 7, sL~ned by Zarl Dean Honarc3, Deput~r, 

ell of these p etitions 11ere~nied e~ceDt Virg inia Art Goods Studios. 

The situation :urrounding /i r g i n j_a Art ias al ·•aJs difficult and s ome\h1at 

becloudec . Tirgini c: clPimed exemption '.7 i thin ten days after a pproval of 

the Code, in that they ·.:ere not i}arties to it. The Code Authority p ointed 

out their membershi ~ in the major syonsoring orgenization and failure to 

resi -;n made them parties to the Code. In the public hearing of i•Iay 7, 

1934, thev uere p ermitted. to file briefs. As far as the files disclose, 

9811 
- 76-

action 7~P t~e ~ on t he i r pet iti o~ . a ll othe rs h ea r d b eing denied. 

i:o cvio.ence C[:l n be : ou.nd that .formc-1 <' Ct i on ,::.s s eve r t a.ken ·,.roon 

irgi•i a Ar t but it i s cleo r that a t a c i t a·J.)r ovgl t o exemp tion rre.s 

- i ven . Th i s gave ris e to much ·bi tter critici sm by t h e Code Authority 

··11i c:1 f l <".red un r n ther bc;.Cl l y .··h en i n J uly 1934 i t ua,s made };:nou n t hat 

p further ~1ea ri n:r · a s to be o·0ene o. . lJothii1C def init e ce rune fran t :1i s and 

the me.t t c r ~~. c.;:=: d alonG all t h r ou.sh fall a nd '.·i nt e r of 1934 and 1935 

th , a t a l Most eve ry Co de Authori t7 et .~; . bi t ter r esen t ment being 

voiced ove r t he f c- ct tha t Virg i ni r- Art e ope rB.ting in t l1eir or:n nay 

ni t hout e;n,~ d to Code r e aui r enent,s . The Code Authority insisted that 

undue influence hnd. been a n C:. ? c:-,s beir,f' e :e r c i s ec., a nd. found 1emselves 

in a di f :f'icu lt unt enabl e po : iti on si nc e t he cQ.se ···as consk.ntly used as 

a n e. ampl e by offenders i n e:;: t enUE.ti on of the ir or.r n r.1 i sd.eed.s. The Code 

uthority and i t s Dire c to r s f elt th~r coul d do no t h i ng a n d it as not 

u ntil Deputy Colonel I ;e ngum c:mCl. h i s e.s !=' i stD.n t Dan r Hill took l1old., that 

succ e ssful steu s '7e r e a~: n to iron ou t t h e si t up tion. Thro"lgh the 

g ood off i c es of t he DEnu t7 1 t l1e Code Dire ct or, ; :a-x 3e ~: \. i tz p roc e eded 

to L:.rnchbur-; a nci me.d8 a stuo.~r of operati ons . He made certa in recommendations ·-i th respect t o p l ant oper ati on s a nc:t t l1 e in stal 1_ a tion of a 

cost sy stem and. found evi den c e of the abi l i t Y of Virs i nia Art to pay 

code .rc.ge s . Referenc e t o E:-:hi bi t A. 1. po r t i .on te c'i. April 20 , 1935 

::;i ve s i n(;_ i ca t ion of the succ ess a t ten dir.g theJ.ast, a s 1.7ell as a hi story of 

t he ca s e . 

4 . Oti1er Admi nist r n tive .?.ctiviti es a n c a :::enci e s 

. 

a . Tr ade Pra c t ic e Complaints Commitbee 

On Sept emb e r 27, 1934 , O~ ci er lifo. 332-17, a plan of organizati on a nd _) rocec~u e cove r i nr r r o.c.e Pra c t ic e Comp l a ints a nci. the appointme :1 t of a Commit t ee ·:•a" f'.l).)rovec'. o·r the Admini stra tion. The u ersonnel 

of the Committee consist e d. of t h e fol1.oq i n-r:: · 

9811 

· .. :i llimn C. i.at ~1 , Pros_i <.lent 

·::r i llic:·m C. ' .r- th Co . , I nc. , 

31 ~ast 32no Str ee t, 

l'e .~· York Ci t 7 . 

17e.i Yor 1-:: :.:c:- nufe c tur er maldne- be :-s rc:m,~ ing in 

r e t e.il 1)ri ce f rom $1.95 u p to c:tnd. over $4 . 95 . 

H~ mpn .3u r st e in , Pr e si den t 

Cl1a rle s Surstein & .Jros., I nc., 

325 Fi f t h Ave nue , 

:~er: Yor1( Ci t ·, . 

An 01..1.t of to -:- n m ..... nu::"< cture r ma>~ ng :Da :;s r e.n.ging 

in r e t e i l p ri c e ? r oo $1 . 00 to $4 . 95 . 

;i?J: ·.arschau e r , ? r esi dtm t 

; :<r. ·::2 :..·, c:w.uer 1 I nc. , r.: () • J. .... ,.. ' s t ·J'l .e s v 0GnCl Tee t , 

J.\!e•:-; or1;: Ci t v . 

A be=der ba?, manufac t ure r of l'T. Y. Citv . 
-77-

La · ·r ene e <o s s, Pre si dent 

En t erp ri se Acco~ ori es, Inc ., 

352 § i fth Avenue , 

Ken York Cit' '. 

A l{e'.: York Lanufr' cturer maLing a one Dric e line 

to r e t ail at $4.95 

k Jvlication for a ·p!Jrova.l of t lli s committee Tias first mad.e 

un G.e r authority of a r esolution :,>asse cl bv the Code Autho ri r at meeting 

Fo. 4 helo. A-·Jril 11, 19 34 (see iiinut es in J:~:h bi t J .l) but it ':ras not 

El.D ·Jr ov ec~ u ntil the follo•:ino Se•Jtember and the committee hel d but one 

meet in , October 9 , 1934 . 

There ·.-as also submitted , a t that time a u l a n of "9 roc edure, 

nhich \""." i t h some change '.·ras also c:op roved (.~ xh i bit B. 1) • The nlan called 

for a National Comr.1 ittee as ···ell as ~-1eg onal Divisional e.nd a1bdivisional 

cornmi ttees for specified territori e s a nd. purp ose s. 3ut one committee, 

the :i\Tationa l, \:as ev e r se t u:9 an d. f or re<?.s ons st a ted bela·-, neve r a ctually 

functione e .. 

T:1e :oai a pe r s onnel of t .i1 i s Code Authori t v held a broader vi errp oint o-:' the ir functions an d their opp ortunity to s e rve, than nas the 

cas e in othe r ino.ustri e s, coupl ed -;·ri th, as e:- -m nuf ac tur ers of ha nctbag s, 

hc-ving a rim y kno'.:l e dg e of the ir industry , its problems C~ nd p itfalls. 

It '.7a s in the ir vi err p oint, ri ght C'n d p ro:9e r to t rke up a ll compliance 

ffi[ctt e r s t:1emselve s, ,....ere the~r trade ·p ractices, or hours and a{~es, study 

each situation, Apply <." r remed,v n e cessary a nd re-Jort to the nhol e Code 

Authoritv . 

·At · no time -;ri thin the l::no1.;lec.eo of ~1 er.ri ter 1.ere · tr ~de practicG com~J int s made at first han d , kno'rll e dge of s e eming v iola tions comin -: to off icia ls, a s "' :result of study of the r e t a ile r's buying and 

selling of merchnndise . J.iaving obtaineC.. in this '.-'a:r , f re ts up on ·.:hich 

to ac t, meetir:s --·ere i1F" 0. ·.·i t l1 t he pDrties involved. and it 'l as generally 

found. tha t vi ol o.. ti onE'- occurrec1 throug h l a ck of ~J rone r unde rst2nd.ing and 

-·ere r eec3.ily stro.i gh t e.nec. out. 

(b) Labor Comp laints ·Committee 

At a .me eting of the Co de Aut h ori r held June 14 , l~ee ting :No. 

11, see i:inu t es Exhibit C-1) a resolution ,-:as Jassed. appointing a ia tionD.l 

La bor Compl a ints Col'Tlf'l i ttee con si sting of three members of industr•r , and 

also thc?. t the Labor Advi sor:r .:3 oard should. a:npoint three memb e rs and that 

the A6mini str e.tion ::embe r should. be e. memb er. The follo':'ing ind.ustry 

members '.7ere appoint e d: 

David A. Ingber, Presid en t; Ingb e r Co., Inc., 

347 Fifth Av e ., lJen York 

Davi d. IJorgenstern, President, IJiorgenstern & :tlrossear, Inc. 

26 No. 17th St., Ne,:r York 

Sol Liutterp erl, Presic:ent, Sol Uutt e r}Je rl, Inc., 

330 Fifth Avenue, 1-eu Yor~c , N. Y. 

The names of this commi t tee , together '7i th plan of procedure uas submit ted 

9811 
- 7$.- . 

to the omin i st ''t' t i on July 6, 19 34 , but neve r app rov e d .a n d. therefore <lid 

not f unction . 

(c) :ar- Lar·s 

By- La· ·s (See Ex11ibi t D. l 1 r:e re f irs.t submitt e d June 28, 1934, 

h~ving be e n nass ec1 by t h e Code Aug"~-10ri ty lie e t i ng Jun e 1 4 , 1934 (See minut es meet ine iJo . 11 , Generc>.l J i l e s . ) 

Digby 4- 2324 

r . Dav i d Barr 

NATI OHJ'.L RECOV ~:'.Y ADi iT NI STRATI ON 

45. :d ro dn r 

NeTI' Yo r k Ci t y 

June 28th, 1934 

Assi st a nt Deputy Aomi ni stra tor, Di v . V, NRA 

Department of Comme rc e 3u ilding 

~a hin to , D. C. 

Dear r.;r . Ba:-r: 

SU3J 2 CT : Consti t u t i on 2.n C: . b-.r-le: ... s of t he Lc.d.i es 1 Handba g Code 

Authori t-r 

I transmit h e r er:- i th f or y our 2.p:9 r ov <'-l thr oe c on i es of t h e constitution 

and b7- l a· ·s fo r t h e La. c:3.ie.s 1 H<mdo2s; Co c-:..e .tl:uL w ritv . I i1ave e one over 

t hese c.. e~ul lv an d se e ot in ~: OL\ i ec t i on n.bl e in t hem. i1onev e r, I am 

'-7 0 de ri ns£" i f it i s not ·o o s:-i -bl e f'or es a c.nd all o t he r b:y-lo.n s to 

incluc3e E'. u ro vi sion c l eE'.rl v s t at i n'::: tne d·.1 t i es· of t he· Co de Dire ctors. 

I me re l :r make this sugr;e sti on be c2u s e of the habit Code Aut hority members have of h iring a nd fi ring r ega r cll e s s of a Code Direc t or. 

I have u·oon a nuinber of occ8 si Oli. s 2 t Cocle Auth ori t•r mee ting s emphasized 

to 11embe rs, t he n e ce ssi t y of pl acing full r espon sibility upon the shoulde r s of t l1 e ir Ch i ef Executi ve Of f i c e rs a nd t hat 'this cannot be done unl ess they r efra in f rom fo i sti ng up on the p<w roll of the Code Authority 

the i r oTin pecu l i c.r ··)e t s , or appoi n t ee s . Th is situati on h a s existed in 

l 'illinery ever si nc e t l1ey fi rst op en ed. t heir off ice an d. it is one I have 

not suc c eeded in r i ghting . · · 

Yours sincerely , 

( Sif?'zi'ed) , 0. '.7. PEARSOl\T· I: 0. ·.:. PEAESON 

O'JP: DAR AD! IINI ST:K.ATI ON fiiEiiBER 

9811 
-·79-

By-Lavs (continued) 

Mr . 1i<L\: 3er kowi tz 

Ladi es Han o.bag Code Authori ~r 

303 Fifth Avenue 

Nen York City 

Dear J.lir. Berko\·:i t z: 

I am enclosing h e r e· ·i th a cop•r of the :ay-laws 

of the Ladies Hand.b&z, Industry Code Authority •:li t h 

sugc.e st ed re1risi ons to meet the objections of the 

Lega l Division. 

Your attention is ca lled. to the folloning chEmges: 

Art icle III of the ori;:;in;:·l, has been ci..eletecL Ce rtificates of Compli P. i1C e are ro id ~ for in Administrative Order X- 38 , dealin~ ':iith l a.bel r eculations. 

Articl e IV, Secti on 1 has b oen amen0..e6. by t he inse rtion of 

the rrord 11 Indnstry 11 :fore the Po r d. 11 DEm-oe rs 11 in the 

third senten c e the reof . 

Article IV, Section 2 1w s been 0mend.eci.. to set forth· 

t h e ~revis ons of the Co ~e n ith refe r ence to t he 

metho d of e l ection of th.:; Co oe AL:.thority. 

Article IV, Section 4 ha~ be e n amended by the inserti :m of the ,.,ord. 11 Industrv 11 before the \rr orC..s 11 l-:embersh i p 11 a nd. Re esen ta~ives 11 • 

Article V, Se ction 4 has been ame nd e& ~ m~ke p rovision fo r t he ostinc of a bond by t h e tre a surer. 

Article VII , Sections l and 2 have been d.e l e ted, and 

t he provisi ons of Se ctions l and 2 of Art icle VII of 

11 Su::;gestions for 3y-Lans for Code Autho rities (Revised eclition) have b een substituted. 

Articl e VII, Se ction 3 has been r evise& to conform 

to the "Sugge stions". 

Article VIII, Se ction 3 has b een deleted . Itemized 

budgets must be su.bmitted. annu a lly to the Admin i strator. 

-:-:hen so submitted a separate approval of the Budg et a.nd 

Plan of Assessment may be g iven b~r the Administ r ator. 

If thesv By-Larrs, as r evis ed , a r e sa.tisfactory 

u i ll you ~dnO.. y forward, as soon as possible, six 

copies of tne certifica ti on of t heir aclontion by the 

Code Authority . 

Ver.:r trul;r yours, 

Davi d Barr 

Assistant Deputy ~dministr tor 
- 80-

For some real?on not CLiscl.osed this rrwtter nas ~o rman t until October 

1934, '.'hen on the fift h da•r of thc:t mor:th tho <:'.menc ed by -La•1 s rrere r e -

submit ted c>n c apDroveO. unc.~ er OrC:.er 032-19 . 

( 0.) Other 

The re were no TJeculi -~:. acJr:1iu istrative e.ctions or <"E,en cies . . uti1ize6 . 

5 . Other "Dhases of Co re 1\cmini str ati on no t cov re~ a.'D ove. 

A Tra0.e Al?soci<·.tion OJ. .~onerete JOsitive v.~Lle h a s b e-en unl:norm in 

this I nC:.ustr'r e.-.: e~J~ •Jorh<.•:ps t11e onr; C. ealint; onl.v Tii t h collective c:greements . Just n}rr they e:ci steo. e ren i r: l1D.me i s hard. to understancl, for not 

being l1erci. min dec. so to s~Je !:. , t~1i s int u st "''' ·o ·--•~d not r::.deouately support 

for-r:7D. . d loo~~L'l ~ er.ti vi t•r o:f:' t n i s chr:'l.rc>.cter. 

The hand bag CoO.e Autho.ci t r c.irec torP.t 0 r.ent far Rfiel d in their 

r:o r·: , F'..~prec ia tine the neGc' of oui lC.i ng a c lo se} .~r ni t inoustry, cementing relations lilJs be ':'lee~1 c;,ources of su~J~'?l-.r c.mc. ~.l8 ir onn grou- , an d bet ween '.iholesa.l el·s , reta ilers &nc t l'1emselves . rrhe-r !<::e-1 t close na.tch oon 

aoverti ~ of of ferinfs by r e t a ilers , both regu ::~.i ' a nc3 spe cial, lcept 

c1oRel•r i n to".lch -r!i th S~l iO I> , st yle arret color tr .. nds, constrntly met 

rrith t!'C'.d.e aS'JOcie.ti on executives a;-: d le cl.in ~ mer: of i :n dust·ry, clo se l•~ 

a lli eD. to or m~J r; in :'; u::,>on t heir o•.·n , fo:r t hese men h2ving e. vi sion, 

realize d. hov much mi :':;:1t end coulo. be ac comu li shed .md r the ir Code set 

up . 

The Code Autho :c·i t? itself \7hi::. e ap~o ci tive of the vnlue of such 

P-ork 11hen tolci. of it, could not a~:-ry on, rrere not menta.llir g eared to 

it, and without the leadershi ;9 of men such a s t he t rro di rectors, 110u ld 

never have thou:;;h t of sue 1 tins s , l east of all realiz e d their need. 

Given a nother yea:..· of o:')e r ati on t his g roup •:roul d. have found it self, 

rroulo. have 10101- n itse l f, ··;oulc}. 1C' e intrenc hed itself, WOUld have become 

fully cons cious of their need of such knorrledg e and of the llility that 

spring~ f rom it. Evidence in the Cod.e Authori t·r files cl early indica te 

the gains macl.e . 

9811 
9811 

- 81-

OPERATION OF CODE PROVISIOl S 

LaQor Provisions 

Hours 

Wages 

Administrative Provisions 

Trade Practices 

.. . ( . 
IV. OPERATION OF CODE PROVISIONS 

A. Definitions 

As 5 tated in Section a , Chanter One of this history (Page __ 3). 

the follo~ing definition included in the auproved code left s omething 

to be desired fo r constant r eques t s come in for cla rification. 

liThe term 'industry ' ac:- used here in include s the manufacture of l adies', misses' nnd childrens 1 handbags , 

-r:>ocke tbooks, a nd nurses , nanufa.~t,~red of any rna t erial 

of any kind or nature . Tde ·0erm 'inou try 1 c:-hall not 

include, ho,7ever, t he ma:rJufacture of 1andbags , :rocke tboo~cs , purses and mesh bags ma~ufacturad in whole of 

metal . 11 

1. Overlapping 

The trouble lay in the f a ct t hat many a rticles falling generally 

into the handbag category, vre re made by t·7o other indus tries not conside r ed as handbag manufac t ur ers viz:- ni ry and Wa terproof 

Specialties Industry and Luggage and Fancy Leather Goods Industry. 

As the f irst named title ndicate~ , t ha t group we re producing 

many arti cles that becauce t hey ere made of wa terproofed materials, 

naturally fell into t he ir nroducti on line, and yet whi ch to a degree 

belonged to hand bags , since he ~r were designed to be carried in the 

hand for various utility uurpose s . _'Taturally such manufacturers did 

not wish to ope r ate under more codes than necessary and oppos ed their 

inclusion under K~ndbag~ , and it be came -necessary for the Ladies' 

Handbag Code Authqrity to move for an ar1endment. 

The -r:>rob l em with t he second group was involved with both Sanitary 

S1Jecial ties and Handbags. Almost si nce t i me began '-.romen have used 

some form of a r eti cul e in which to carry their small oelongings, money, 

etc ., and t he controversy here narrowed do n to t he dividing line 

bet een hand luggage and hand bag • 

The feeling on t he nart of t he Denuty Adminis trator indicated at 

the public hearing January 9, 1935 was that Handbag and Luggage Code 

Authorities should get together and agr ee unon t he division, with 

perhaus a consolidation of t he t viT o, so closely allied indus tries, as 

being the best answer. In t he case of Sanitary Specialties the 

Assi stant Administrator made the ruling r efe rred to on page 86 this 

hisotr y. The amendment nronosed was in process of se ttlement at the 

close (No tice of Public Eearing No . 367 D.) but in the meanwhile the 

offi cer s of the Code Authorities involved, agreed uuon a modus vivendi 

tha t kep t affairs moving on an even plane. 

In future consideration of codes, should t hat time ever come, 

greater care must be t aken in scrutinizing pronosed definitions and 

see that each is prone rly emb r ac ing , but at- the same time determining 

whe re and what are dividing line s. These cannot be determined satisfactorily in industries such as the se, uuon merchandise departments in 

9811 
- 83-

the retail outlets, for there, they either follow cus tom of their o n 

convenience. Here you are concerned with production and all that is 

involved therein, and . uch must be kent unon a fairly even cost ulane. 

To do otherwise keeps t he l ab or uot boiling and of course makes for 

friction and trouble on _t he lab or side , and can well make for destruction of a we ll established indus try. Perhaps a n answe r is to be found 

in minimum wages and hours being made similar in all close ly related 

industries. Tha t at least vould eliminate much of the controversy 

that takes place in all such cases. In t hi s l ast, one cannot of course 

overlook the difficulty involved, and yet so long as an uneven situation 

exists, trouble~ with related ipdustries arise and are magnified and · 

since you are bound soone r or later to have trouble over the s e matters 

you might just as well take the larger dose at the beginning and have 

done with it. 

3 . Wages 

l • m age 1 eve 1 s ; :'~·!1 · n1m· a , A ve r age 

Section l, Article IV, page 3i- of the code states that 11 exceut as 

hereinafter Drovided no employee shall be paid at le ss than the rate 

of thirty-five cents (35d) ner hour. 11 

Section 2 of the same article states "that no semi-skilled 

emoloyee engaged in cutting, framing, paring, nocke tbook making and/ or 

onerating (except lining ouerating, cementing and/or nesting) emoloyed 

in the manufacture of any of the ·o roducts covered by the provisions of 

this Code, made of any materials other than imita tion leather, shall 

be uaid at less than the te of forty-five cents (45i ) per hour." 

These are the only t wo r a tes of pay provided a nd since the last 

was stayed in the order of approval we need only at this uoint be 

concerned with the first named. 

Exhibit G, ~age 1, naragraph 2; page 2' paragraph 2; uage 4, 

paragraph 2 of the Mittenthal memo on the industry, g ives a picture 

of the wage situation obta ining P.rior t"o the code . 

Exhibit F gives a sta tistical break-down of nresent day distribution 

of the industry, disclosed in Code Authority r eports . 

If, a s cla imed by out of town manufacturers, the . large majority 

of their employees were not skilled, the effect of the code wage scale 

in increasing purchasing power, .must 4ave been very marked, for they 

jumped from an average of $6.00 to t,8.00 per week, to a minimum of 

Sl4.00 weekly. 

Taking the manufacturers sta tement in t his re snect, with a large 

grain of salt, my own observation of processe s used in out of town 

f a ctories, leads me to conclude that a full 501, of tho s e engaged were 

definitely affected by ~1 is incre~ e, and the classification break-down 

included in Exhibit F be~rs this· out. 

9811 
2. Industry Compliance 

Of the 87 l abor complaint~ made , but 37% were of wages, and well 

ove r 5CY,b of t hese from one state l;!assa chusetts. See Corrroliance 

Compilation by Colonel Walter Mangum. (Also see Exhibit R.) . 

3. Skilled W?ges 

Section 2 r eferred to in Paragr Hph one of this chapter was as 

n•ted , stayed, i n the order of aDnroval. As pointed out in Chapter 

2 , page i6. of this history and as ma.y furthe r be seen b;v examination 

of Exhibit K, much time and effort was spen t upon this subject and all 

without avail. It was a comoromi 'f e clause placed to placate Jaber 

and New York Manufactur er s, and in the hone, that from it, would come 

a substantia l increase in earnings to a f a irly large number of employees. 

Coupled with it wPs section si x 'T)roviding for a permissive classification and basic rate s for the more skill ed classes of labor. 

Exhibit G, nages i-2-3 and 4. g ives concisely the labor situation 

obtaining in the industry 'T)rior t o the Code' s adoption. 

. Adjustment of wages above the minimum 

There we re no provisions for an upward adjustment of wages. 

5. Ma l-Adjust rnen_i wi -=- ott.~ industr ies 

In nar agr anh A, page .82 of this chapter, reference is made to 

t he difficulty existing between the Sanitary and Wa terproof Special ties 

Manufacturing Industr y, Code No . 342 and the Luggage and Fancy Leather 

Goods Industry Code No. 42. 

The Luggage and Fancy Lea ther Goods Industry Code nrovided for a 

differential in the Southern tier of States of 32 l/2 cents for male 

and 30 cents per hour for females as against 35 cents for male and 32 l/2 

cents for female in the Northern Sta tes. It also made provisions for 

learners t o be pai4 during a six weeks ~e riod not less than so% of the 

minimum. 

The Sanita ry and Waterproof Specialties Ma.nufa<;turing Industry 

Code made provision, that the rate be 35 cents per hour, excent that 

Apprentices be pa id not less than 28 cents per hour for the first six 

weeks and thereafter a t 35 cents ner hour. 

The Ladi es ~~ndbag Code nrovided a r a te of 35 cents per hour, with 

no excen tions and a permissive clause for lea rners with no snecified 

r ate . 

Obviously when auestions of jurisdiction over certain products 

arose a they cUd, t hese r a tes became disturbing, and mor·e especially 

with Luggage for it was felt tha t t ha t industry had not an efficient 

Code Authority machine se t up. 

9811 
-85-

As pointed out .in Pa~agranh @fu~Y~?~~~ abov e, the. matter wa s 

be ing adjus t ed by we.y of a def:lni tion' amendment. at the close. . 

6 . Posting of Lab or Provis i ons . · 

Industry comnlied 1001 with t he Dosting of l abor nroyi sions.with 

t h i s , to be exoected curious result. Certain out of to'vn factori.es 

concluded it wou ld be wi Re to cor.1e to an agr eer.1ent with the union, 

but somewhat unon owners rather t han union' s t erms. Rates of Day 

were agr eed to but colle ction of union due-s. was made in the off.ice of 

the factory and uniop pfficia l s denieo access to factory floors . In 

the l ast mon th of code life em1)loyees were becoming restive at naying 

union dues, stating t hey could not see any· ~ood · r eason for so d?.i!1g, 

s ince it was the code and not t he union that was esn on ible f.o.r the 

pay envelope increase .· Wha t the outcome ·of t h is -qnres.t wou,ld hp.ve 

been it i s hard to say. The f a ctory owners, .whiJ,.e o~ anxious .·to .have 

deal~ngs with the union, felt the nressur~ ·of insidioul:l prq:pa~anda, : .. 

made by unions, a nd t he refore insisted with t he ir _·.eml?lpyee.s, t~at .J .. 

t~eir union agree;nent wEts poli-tic a nd wi s e. · :.:.: . , , ... -

7. Insignia · · r ~ 6

1 

Since this was a l abel indus try all mer phandise ~ar rie . h~ ir ·. . A. 

insignia and it was extremely difficult for a ITlQ.nufA.c:tur:er .to O.i~ QSe 

of his product vi t hout a l a bel. Of course he WR S not nermi tted to' 

have labels if he we re not in comoliance . _ .... . :.. 

c. HOURS 

~--

1. Effect of Code on Indus try 

The figures fr.oril various sources conce rning t9-:t ~l . .emp.;toyment in 

the industry are at wi oe va riance so t hat it is impo~ ible to say.what 

effect shortened hours hao unon t he indus try . Ranging from a quotation 

of 15000 ( See Exhibit F, 1')age ~) it i s to be noted .t hflt .t he Code 

Aut:nori ty's mon t h ly r eports f rom indus try (Exhibit F)' .show ·but annroximately 6000, exclusive of ernploye r s and ·salesmen.; .Of. co-q.r ~e these 

renorts are not comnlete, and s ince they a re not, it i q . difficult to 

come to any conclus ion unon this point. Industry itself reneatedly 

said to me t hat shortened hours han increased employment but not to 

any great degree. Reneated requests we r e made ·for ~e miss ion to work 

t wo shifts and for overtime as we ll as for lea rners but the Code -

Authority refused t hem a ll wi thout excention, on t he g round ~ondition "' 

d id not warrant. Sere again migration from New York had a bea ring . 

Almas t . a ll of the moved fac·tories had relocated t hemse lves in .smaller 

center.::;, whe re no l abor, or at least but a sma11 number, of a .skilled 

or partially skilled char ct r was available. · (Using the term skilled. 

here, is of course, meant, those f amiliar with or u sed to f~ctary ~ark 

of a ny kind). It follows ·t he refore tlla t it was d'ifficul t to find 

necessary man power to produce ~o k at the n eak seasons of .Easter and 

fall.and early winter, hence I do n ot believe much increase in the 

number of people put to work was made • 

9811 

. . ) i . , 

• .' - ' r 
- 86 -

2. Effect of Tolerances, peak eriod provisions, various 

differentials. 

There were no tolerences or differentials provided for in this 

Code. The West a nd South were desirous of them but the provision 

as not included and industry, t aking it aR a whole, set their fq.ce 

against them. Refe r ence is mad e to Exhibits V and W to illustrate 

reasons and position tak en by the· Code Authority. 

3. Industry Comnliance 

Reference to complianc.e data gathered by Colonel Walter Mangum 

and the Comnliance st~tistics of the Code Authority contained in 

Exhibit F and also those in Exhibit R shows :~ t compliance with hours 

was uniformly high. Labor was i.nsistent tha t the hour provisions 

should be amended wishing to reduce them to 30, but that of course was 

consistent with their position in all ,of these industries and was felt 

not to be sound . At .any rate nothing ever came from the demand. My 

own feeling was and is, that such a step would have ~een disruDtive 

and would have defeated the :ourpose of putting more people at work, 

for I do not believe industry could have adjusted itself to such a 

radical change. After all it wc:i.s a step forward to bring about the 

reduction that s made , and one needs time to absorb what is involved 

even in a first step. 

4. Mal-Adjustment ~th Othe r Tndustries 

There was no mal-a justmen t with resuect to hours. 

5. Posting of Hours nrovisions 

Labor provisions were posted as noted in paragraph B, section 6 

of this chapter. 

6. Insignia 

N.:q.A. insignia was used c-s noted in Section 7., Paragraph B of 

this Chapter. 

D. OTHER LABOR PROVISIONS 

1. Child Labor 

With the excen tion of one grou:o in Massachu9etts and one having 

their products made in the home, child labor was unknown in the 

industry, before or. since the Code. In the first group located in 

Have :hi~l, Massachusetts a rather sho'cking situation came to light, 

and 1t 1 doubtful that but for the Cod e, any but local officials would 

have ever known of its exi<>tence. This group hit upon the 'idea of 

manufacturing a t yPe of bag made by weaving strins -of leather. They 

we r e Gr eeks and t he 1 eads of each f amily lived by their wive~' and 

childrens ' sweat, This was storyned by the Code Authority. (See Exhibit 

G, ·p , 225., paragraphs l and 2 a l so Exhibit X). Since child labor is a 

constituent part of Hor:1e 'Wor k t he discussion of the second group is 

carried on in the following ae ction. 

9811 
-8.7-

2. Home Workers 

Home Work has existed for some years in this industry but ma inly 

confined to hand croche ting, hand embroidery and hand beading. Such 

tyoe of work is used in the beaded bag division and was ne rmitted 

under the Code, but it was further ordered, tha t in conjunctionwith 

such State and Federal departmen ts and other agencies t:1e Admin is tra tor 

might designate, the Code Authority should s tudy a nd investigate the 

problem of home'.'TO rk, and make recommendations for its effective control. 

l:and Sewing in the home was also penni tted but only U..l'ltil July 1, 1934, 

tha t being considered sufficient time to eliminate t he ~ractice. 

(Article 5, Section 10, Code). 

Reference i s made on pages 50., 63 ~h is his tory to t he manner in 

which the Code Directors apuroached the nroblem and Exhibit 0 indicates 

their conclusion and their recommenda tion. The plan was never anproved. 

The hand sewing embargo went into effect on the day anpointed and was 

enforced insofar as such a provision is enforceable. 

There are about 25 manufacturers engaged with it is stated 5000 

. orkers. Of this number it is estimated only 500 are ernoloyed in the 

factories. Under the Code 35¢ was to be the hourly r a te of pay, set 

for all as minimum, but these manufacturers found it impossible to 

compete with the imported product on this basis hence their insistence 

unon a lower rate. 

9811 

3. Handicapped Workers 

Article IV, Section 7 reads as follows : 

"A person v..rh ose working ca·oa ci ty is limited. because of age 

or physical or mental handi cap may be employed at a wage 

below the minimum established by this Code under the following conditions: 

"( a) That they shall be paid nroportionately no less than 

the other employees in the same f a ctory receive for similar 

work, but in no ca e shall their cornnensation amount to 

less than seventy percent (7~) of t he amount required by 

the minimum 1age nrovisions of this Code . 

"(b) Tha t the employer shall at once nrenare and transmit 

to the Code Authority a lis t of such excepted persons stating 

name, class of occunation, vrage r a.te, leng th of s ervice and 

reason for excention. This list shall be revised un-to-da te 

once each month and transmitted to the Code Authority. 

"(c) The proportion of excepted nersons to total em-oloyees 

at any time shall not exceed the nronortion of such emnloyees 

on the nay roll during the week of July 15, 1933. 

"(d) The Co de Authority shall have the right to investigate 

and disallow any such claims for exception subject to review 

by the Administrator upon anpeal by a~ emuloyer or emp~oyee. 
" (e) The Co0e Authority shall reT)ort to the Admin istrator 

within '-lree ( 3) r1on ~hs and froin tir.1e to time· thereafter 

a~. tn ~re f·ffP ct oi the cmer11.tio:1 of t his provision, both 

gene1·£...:!.Jy nT!I.l in cw· es of in i,ridUc_"\.1 ha rdshi-p ." 

At P.·mr:e t.i.r.'; 

Me e t. i "'lg _ i~ . C t , 

fo~l ow lng ~uo rt : 

uf '.:hs CorJs .!•.utll·>·.ri ty held May 3 , 1934 kno,~n as 

(; o:nmi t t e e c:'l Ha1 •. ,:l 1 . ..:a "Due d. pers o~1s -pre s en ted the 

CO!Iil. !ITTBE OH l!t~~WlC.!T D PERSONS 

A meE'tii'.g of the .J ""' ~ :tee w: s ::1e l d at the office of the Code 

Au thori t:r c·: A:')::' i 1 :?.(), J. S~~4 o 

Messr s . Ln :.1css , Cha iriian , and lf. . C. e. th , were p r er.ent . 

The U. S. e~a~~men t of Iaoor ~as ~~ us~ c~ rt qj n re g~ la~ ions in 

r egerd t 0 .~:.o F..r.pJ.cymAllt of '

1hc.ll'L·-.\'):r e ..... o8:S ~. 11 whir:h by executjve 

orde r of Fe1nunJ.·y 17t~l a re ext.:;nC.-:;c. to ali . Codes 1Jreviousl y auproved and 

t o 1 P- an--n·c..·..red o 

Purruon t tc t hef.\e regulations: an''~ in aecr:rrde nc e w ith A.rt icle IV, 

Section 7 of tnc Ccdet e le Gcmf'1.i t i.P.e l'eCvP"f:lends t he foilowing: 

All !TI ;lc ~rers vrho 'vish to e:n ulGf hand:.capned pers ons below 

t he mi:nr:n::m 'lr-·ge r~·.t , r::,..1st fo l_c ·~r tLir. urocedu-::·e : 

1. AnDli ca~ion m'.1st be nv1 e to t he S t9.te Ar:.ency 

d ef 1:::;na 'Sse b y ch0 ·G, . Department uf Labor 

f e r. a c :-rti£'j ca t c . ,'h is an-r.-:::..1 ca1 ion. must be 

acc:omp:-mi -'3 u :by 'tLle Lice •:.nr is c e rtifi cate. 

2. Aft ~ ~e Sta t e certificate i s obta ined, a n 

ul ~. ca ion i " to ·JIJ m: . .l.de to the Code Authority 

f or the e!TI"'l oyme:::1 t of such workers 

sn ctfully submitted, 

Lc.w:n ·nce Moss 

C l..lb. ~ .!.~ man 

l ' 

For some n eculiar ,reH son i t O.T)DG r ., 1;~18. t t hi f; indus try, with the 

excentlc'1 cf ~: e homew0:rk sc. .. ·U .. on , 1'.':1 :-: rH't had r.anclir.a oned ue:rs ons in 

it. 11'::->rk3J' ::.· <.m~~ ~ · ~:rot.l ing w:, ·t.n r 8f e 1 e::~ -~P to such v:o·~:. e:rs is to be 

four..d. in t.h~ fi·· cs and so f a:c as I ("q, . r e 0a ll no au1Jlica ti ons cove ring 

t hem wer·e eiTrr ma de t o t :1e Cude Autr.ori t ' ·• 

" 

4 . Anm·entices a nd Lea r ners. ---- - . --- --------

The CoJe c or..tains but one efere~ ce to l ea rne rs, section 3, 

.A.rt~ cl e I Vr ::tnC. t:.~r~. t ll"<:.s pe':'clssi v8 o:1l y for i ~ !'cads : "Tlle Administrator ,....tay , n.d0 r exCt;l) tiun"l.l ~'J.i'IJ S'\.!3nc"s! A-nq. u:r.on such conditions as 

he may prc""cribe, :1er n i t a n emlJer of 1jL1e industry to employ lea rners at 

r ates below the minim·u.rn , age herein established." 

981], 
-89-

Many annlica tions for nermission to employ learners were mar.e, 

but the invariable custom was to deny such. The Code .Authority were 

desirous of having as nea rly 100~ perfection as ~ossible. In their 

judgment learners v1e re not necessary, and the fewer exceptions made, 

the more nearly they beli eved would be the attainment of their 

objective, perfection . This being, so, · learners we r e not and could 

not be exploited . 

5. Other Miscellaneous Labor Provisions 

Section 3 of Article III wh ich stated 11 The prov1s1ons nf this 

article shall not anply to outside sale.smen11 led to considerabl e 

argument. This group uf em~l0yees had become quite restive (See 

Exhibit E.l) and wished to be considered in the code provisions, in 

fact outside salesrnen in all consumer goods industries we re insistent 

upon recognition, organized and annlied for an A. F. of L. charter. 

The H:mdbag Industry here refused to consider collective bargaining, 

taking the position t hat the nature of the salesman's calling was such, 

that of necessity all dealings must be with the individual. Nothing 

was ever accomplished. 

Article V, Section 2, Right to Organize, standard. 

Section 3 uf this article, Not Reauired to Join Company Union, 

also standard. 

Section 4 , provided that empluyers shall comnly with maximum 

hours, minimum rates of pay and other conditi uns of emnloyment auproved 

or prescribed by the President. Standard. 

Section 5. Forbiada nce of reclassificatiun. Standard. 

Section 6. Providing for safety and health. Standa rd. 

Section 7. Related to State Laws more stringent than Code 

provisiuns. Standard. 

Section 8. Providing for posting of Labor Provisi ons. Standard. 

Section 9. No modification of established nractices relating 

to vacations, etc. Standard. 

Section 10. ~orne work forbiddance except for handbeading, hand 

crocheting or hand embroider¥ng. See Section D, this chapter. 

Section 11. Provided for observance of Code Wages and hours by 

employers in other industries making a rticles coming under this Code. 

Checked closely and by moral suasion, observed. 

Section 12. Requiring responsibility of manufacturers fer observance 

~f code provisions on the part of contractors in their employ, 

Followed and checked persistently. 

9811 
- 90-

E . AD NJST3AJ VE PROVJlSIO~~ 

l. Inve ti~ut ion of Records Q - - ---- . -

Sub.ecti on C, section 7, Article VI of the code stated 11 To obtain 

from member: of L"te l !:dustry such in!ormation and reports as a re requir ed f o1· 'lle P.drJ~ btl"t.t n of the Code , and in addition to information 

requi 1 ed t o b9 su.Jm:ttaC ro a~y od~ ~tt~o~ it , a ll or any of h~ 

per CtJS '' 1. ').je ~t to th ~. , c c(.ie ;:'"'all fu.·r_ ish such tati s'~ ical information 

as t e k 111 •. n~s ra·r.o r r:uy deem nec:e n".<'.r Y f or t he purnoses recided in 

Secti on 3 ( :::t) of the Act, t<? such :B.,eJe~a l and State Agencies as the 

Admin:.st l·at'lr !'!lay deRi gna tc. 11 · · · • 

As nct cd i :n -o r evi ous cl,a 1ter~, r; t a ti. s t.i cal inforrna tion '"IC"' s unknown 

in t h1s P.lus tJ.~ ' prj_ ,Jr ~o t he C:J dE" , .:r.d wi th the exc e-;)"':.ion of t wo or 

thr ee. t bc wo:;:-d stat :i. ti~s" at.ur.;rn~cl to be a ne,:_; term e.nd t herefore 

not UI'0.3:; s Lood, Fo . e\er tb.e t')o d~ A· l-v

1

:lori tj Directors took first steus 

to gather such s l ':lp l e f a cts a'"! ·o.:>2 :db le . 

Exhil-) i t ~· Y'3s t:.te ext8Y'.t of ~tat.istics ge.thered . 

Exhi "b 1t N St:cti on J.g, t ed Yarch :.3, :1:::1:~5 e.l so r efers to this subject. 

Ko out i d ag ency fo r collectJ.on of this materi al wP.s used, the 

Code Authority ::; r:- .3 ferring the emulo~rrnent of their own office staff. 

Such material wes kept a. confi der..tia l and the re we re no comulaints 

as to leaks . WL.~l e no definite T)rovision for investigation of records 

was made in the ;ade , t he Code Directors and their subordinates did, 

when they had reas on to douot correctness of figures suunlied, examine 

books a~d so f a r s I know without question of right being raised. 

There vras not conta ined in t h i s Cod e a clause nroviding for 

Liquidated r amCJ.E,cS . 

4 . Other 

The other Adminis trative prov1s1ons: Compliance mach inery set up, 

writing of r.on ~ti tuti on and b y-lcw1s . c oo clination of this with other 

industri es. u-;..~ vi c. :.ng of a budge t EL d col lacti.on cf assessments, the 

setting 1.1.p vf Fat:. I'radb Prac.; t.ic e a:1d ?Ja,,ning .i\.f_e:1cy, t:he r ecommendati 

of Uniform Co st 0yste'1l and t.:.le stu·l y of style 'f.Jir·a cy are treated elsewhe re, also see Exhibits H, P, ~~ Z, B. l, C.l trea ting of same. 

F. PRICE Al\l-n .ACCOUNTIJG PROVISIONS 

Sub se io n I, Se ction 7 of Article VI, provided for t he recommendi 

of a uni fn ll co~ t a nd/ or a cc-Junti:;t; pvstem for er ch division of the 

indu.:-try c.:1ct .::tlso in Section 14: , Ar·tj cl e VIII fo r bidding selling below 

cost . 

9811 
-91-

The Code Authority officials spent much time and stu.dy on this 

phase of activities, without an approved final result being obtained 

and it cannot be said that this matter was the cause of controversy 

for all hoped and looked for such a system~ It wa s, ho~ever, found 

extremely difficult to work this out satisfactorily, and only. toward 

the end of the code period was a definite recommendation made. 

On PP• 225 paragraph 4, Exhibit G the Code .Director remarks 

11 the average ladies handbag contains about t wenty different materials 

and requires about thirty man operations to complete. A general 

lack of knowledge of computing costs by the manufacturers in the 

industry has resulted in ruinous competition" which exolains the 

difficulty in working out anything approaching a workable system. 

Exhibit P was forwarded to the Administrator for approval 

December 26, 1934 and February 18, 1935 Orton W. Boyd of Planning 

and Research filed a memorandum, made nart of this exhibit. It will 

be seen that as set u:o, .the formula was in some respects contrary 

to Office memorandum 228-3 and in others not considered good 

accounting practice. Many conferences between Mr. Boyd and the Code 

Directors were held but like so much other good work this was never 

carried to a final conclusion. 

1. Price Filing 

There was not any provision made for filing prices but an attempt 

was made to set price groupings (See Exhibit Z.) At meeting No. 8 

held August 2, 1934 it was decided that the subject matter of Exhibit z 

be taken up with retailers interested. Since minutes in .our files 

disclose nothing further on this matter it is to be nresumed it lapsed. 

a. Waiting Periods. 

Not provided for. 

2. Emergency Price. Bases· 

Not provided for. 

3. Accounting Systems or Cost Systems 

Submitted but never annroved (See Section F this chapter). 

4. Administrative Price Policy 

Admitted to be desirable and necessary but since system 

submitted never reached final approval did not become onerative. 

5. Classification of Customers 

No code provision 

6. Price Differentials .,. 

No provision. 

9811 
- 92-

a. Stop Loss Provisi on 

No provision. 

7. Te rms of Payroe nt 

Sect. :Lon ll of A-.r.··~iicle VI II urovided for cash discounts not in 

excesr; of 3.1-.l.o E.O. M. and anticinat.ion at the rate of six percent 

(6~ ) per annum. 

When it b e came kno n to t h e 0utside world that the industry had 

such a pr: V1FlOi1 in the new c ode , t !1.e wa r 'Jilas on, and never ceased to 

rage , C.u-::-ir. 6 the ~o nths rec e~in~ c:md succeeding the public hearing 

of De0em"'Jer 8 , 1933 . After aTJ ·o ro ~;a 1 1 t he fight WEts r e oTJened by the 

National He-tai l Dry Go cds Asscc:iaUo.r1s rP"1res ntaJvi.v~ ~·.~ r. Fox at every 

op-portunit;r, but industry stuck to it.,s gm1s a n d founG. no great difficulty 

in getting and hold ing the reta ilers ob se rv nce. Naturally the first 

few we eks after annroval were difficult and all sorts of ways were 

devised to ci1ange the inte:r..t 1:>-..:t~ wit ~1 ou~ a ny grea t success, and as the 

months en t by ·l;he new t e ::r.s were c= .n ac:ce-p i. cd commonplace. Pages 24, 

33, ·~ . ·10 of this h isto:.ry 1 t c:: ll t.he s tory of the controversy and 

Exhibit G: pp , 246 pP..r , 1, a:i.s o p:o .. 22q pc:tr. 2 1 and Exhibit H state 

the his tory and argument; supuorting the industry' s position. 

8. Coo-oe:ca t ives 

No pr ovis ion for such. 

G. TRADE PRAC ICES ----- - --- - -- -

Trade Prac tices of this Industry were embodied in Article VII of 

the o~e~ as or1ginally appr oved, and a new Section 16 was approved 

under Adjn'nistrq tive Order 332-24, May 23, 1935, which of cou~se never 

b e c ame effective. 

981 1 

The Section 16 proposal was as follows: 

"No membP-r sha ll renair any used bae; unless a minimum charge 

f ~ ~ 1.., • d . h o ,Ji· 0 er ua.g ~ nn e to c over ·;· .. e c ost of rna t e rials and the 

l ab c r on sue h epai-.~. llo msr:11Jer of the indus try shall pay 

for any of the foi'\rvarding cha rges on such renair." 

Section 1 of this Article read: 

"No r.1embe r of the industry shall publish advertising (whether 

pri ~e C., r a dio, display or of any othe r nature), which is ·misl eading or inaccurate in any mate rial uarticular, nor shall 

a ny member, in any wrty misrepre sent any goods, (including but 

without limitation its us e 1 t rade-mark, grade, quality, quantity, 

orig in, s i ze, substance, claract ,~ r, natur e , finish, material content or prenaration) or credi t t e rms. values, policies, services, 

or the na ture or form of the business conducted." 
-93-

This industry is not advertising minded, for as far as known there 

is but one, a high style house, who spends advertising money. 

Therefore there was no tro:.1ble in this direction, exce-pt U"90n the 

retail side, and over this the Code Authority could not exercise 

control. Even here, however, realizing a bad effect if allowed to 

continue, the Code Directors brought pressure to bear upon the offending store's management and succeeded in checking it. 

With respect to misrepresentation, however, there was occasionally 

another stcry. The Directors usi~g co:rective rather than punitive 

measures brought about meetings between buyer and sell~r so that 

such good.s were withdrawn or properly described in their selling. 

An amusing instance of misleading labeling, or marking with intent 

to deceive, was discovered shortly before expiration. One bag item, 

carrying a patent registration number tag, was noted in a retail 

store. The Directorate,familiar as thev were with their industry, 

knew nothing new under the sun of a patentable nature, had been developed for man.._v years. Note wa.s made of the registration and on 

an early visit to Washington, call was made at the Patent Office. 

There, it was learned, the registration covered a patent issued some 

fiftv years earlier. Of course a stop was put to use of the fradulent label but for a period, the manufacturer had succeeded in keeping ever'r one else off his particular grass. 

Our own files carry nothing covering such matters as this, but reference was had to the Code Authority files in New York as well as to 

the Code Directors. 

Section 2: 11 No member of the industry shall use selling methods or 

credit terms which tend to deceive or mislead the customer or prospective customers. 

We do not find anv record of the operation of this provision, but 

the writer knows that nressure from retail outlets uarticularlv the 

powerful b~ying groups was always being exercised to force a change 

in selling terr.1s by changing the actual prices marked·. 

Section 3: 11 No meTYJber of the industry shall withhold from or insert 

i~ any quotation or invoice any statement that makes it inaccurate 

in anv material particular. II 

Impossible to check. 

Section 4: 11 No member of the industry shall brand or mark or pack 

any goods in any manner which is intended to or does deceive or mislead purchasers with respect to the brand, gr~de, quality, quantity, 

origin, size, substance, character, nature, finish, material content or. 'Jreparatinn of such goods. 11 . 

One notable instRnce of violation of this provision was gleaned from 

the Code Authority Directors. 

A uell known New York Department Store misl.abeled and advertised a 

line of bags stating they were of a certain high quality skin. 

Failing to get satisfaction from either the manufacture~ involved 

9811 
- 94-

or the s torP (r-imbe ls) the Co ~e Directors took u o the mEl tter with 

t he :aet t c r .' us.iness 3ur cau a n'i t "le line w:1 ~ wi thd r 1.wn with nroner 

a'l')olo€;ies f:.:om the store O' ne:r·s , A.nd P.. tremendous sruawk f r on the 

mn.nuf;1 c tur er. P"e however wCI s fLw lly convinced of his error a nd 

g r a cefully cceeded. 

Sec ti on 5: 11 1-Jo membe r of the Inr'lus try sh8.ll uublish adv ertising 

whi ch refers i naccur a t ely in n.ny ro'lte·dal ue rticulqr to any comnet itors or their goods , 1.)ric e's , v.:.lues , cr ed it terms , T)O licie-R or 

se rvic es." 

As stetsd in note commenti ng on Sec tion 1 of this cha ryter the industry i s not E'.n Pcl ve rtising ~ndustr'y . 

Section 6: "No member of t he industry shall nublish or circularize 

unjustifi ed or unwEl r :""C'lnt e d thr eR. t~ of l egal nrocee.dings w!lich tend 

to ha r ass or have t he effect of no r <'.esing comr1 eti tors or intimida ti 

their cus tomers." 

There is nothing in records t o i ndicat e any viola tion of this 1Jrovision ne ither did I hear of Clny . AD11ar entl y the inCiustry does not 

oner te in t h is ma nner. 

Se ction 7: 11 Xo ;nember of t he Inr1ustry s ha ll g ive, or "TJermi t to be 

g iven an~r sPcrot pP..yr:Ient or Rl.lo·'r<-nce of rebRt e ,· refund, commission, 

cred it, or 1.menrned. d is cou_flt, 1)1'L-J t he r in the f orm of money or otherwis e , or t h8 r-.8CJ.:-et o:x-tension to s ecret uurchE'sers of sue cia l services or uri vi le;;es not· ex tendr:ri to R ll ryurclmse:rs ·on like terms 

and c oncli tions . 11 

"ie have no re c or ds coverin ~ t 1-).is but m~r be li ef is tha t it is a provis i on n. lmo ~ t , if not q·o..i t e i :nY? oss 1.l)l e of c hecking and therefore of 

enforce:nent. In ;·.1eet int::s " i t :1 morrioers of Industry, one 'frequently 

hec.r d the s t fl tement t hat buyers <•re on the ne.yroll of c'Brtain mn.nuf a cturers. 

Sec ti on 9: 11 No tnember of the indus try sha ll g ive , permit to be 

g iven, or directly offe r t o give. anything of ~e fo~ the "DUruose 

of i nfl uencing or r e"'ard ing t~1e ·Lction of C~ y er!'lnloyee, agent, or 

r e-or esent a ti ve of a nothe r in ···e l ·1 tion to t he business of the emp loye r of sucl1 emDloyee , the m ·inci ne l of s uch agent, or the re"Dresented narty without the i.<n.owl eJge of such emnloyer, D'rirtciual or 

ua rty. Co~~ rcial bribe ry provisions shall not be ' construed to 

urohi bit fr0e a nd genera l d i strilJution of a rticles commonly used for 

a dvertising excent so f a r D.s suc~1 a rticl es are a ctw.lly used for 

comme rcia l bribery 0 s her infl. oove de fined. 11 

A provision a l mos t, if not mlJ os.~ ible to check or urove. 'li.efer to . .. eceC'di ~g eg ph. 

Se cti on 10: 11 No membe:r of the inous try she.ll a'ttemot to induce the 

brea ch of a n existing contrr·ct het·1reen ?. comnetitqr a nd his customer 

or source of SU"'l') l y; nor shall ny member of the indus try interfere 

with or obstruct the performa nce of such contra ctual duties or services .11 

9811 
-95-

This nrov1s1on like unto many others ha s a goo~ mora l effect but 

beyond tha t" does .not g o. 

Section 12 forbr de the ur&ctice of directly or indirectly Daying 

any uart of the advertising exuens e of a uurchas er, ,,rosuective 

nurchaser or 8gent. 

;!hile ~ is urC~ctice is not so urev.?.lent r: s in many other industries, 

Hand :3cg Manufacturers ·,velco;"1ed · its inclusion in their code for the 

nra ctice was beginning to show its he ~ - The nrovision was found 

to be F deterrent. 

Section 14 nrov~ded ~ c ooqs shall not be sold below cost a s comnuted by · tne uniform cost ~yste~ urovideo in Section 7 (i), Article 

VI. 

The · cost system was never annrovel1. 

Section 15: 11 Jo member .of ~he industry shall cisnose ·of distresseo 

merch~ndise exceut uuon urior notice to the Code Autho~ity, along 

~rith sucl1 infornation a s the Code Authority 8 nd tl1e Administra tor 

may urescribe. Genera l f a ll comnetitive items sha ll not be sold 8 S 

distressed mercha ndise urior to =· ecem·oer 26, general suring corrroetitive items shall not be sold as distressed merchandise nrior to 

l·:iother 1 s :Uay, an0 general sum~er comneti ti ve i terns shall not be 

sold as distressed mercha ndise nrior to July 4. Subject to review 

by the Administra tor, the Code Authority may permit the sale of 

merch:'lndise at neriods other than those herein established. 11 

In viev.r of the corrmeti ti ve situation this nrovi si on wa s good, but 

somehow 0id not seem to work. The entire industry ignored it 11'Jhen 

they believed obliged, and you could not indict the whole crowd. 

Much t>rea ching wc::.s done, v:-hich in time would have had a good effect, 

in fact there were at .the close, slight signs of better thinking if 

not of a ctual nrac.tice. 

2. Cla ss 3 Trade Practices 

Section 8 forbafle the nrRctice. of shinning goods on consignment. 

As in many industries, narticularly those dea ling with dry goods a nd 

deuartment stores, this is a growing nr8ctice, one causing serious 

trouble, and this industry desired to nin it in the ·oud. Argument 

is freouently aovanceo that consignment practice gives an opt>ortunity to a nroducer to more widely distribute his uroducts and a 

broader and ouickened movement of his merchandise. Often in hearings reure~entatives of the Consumers' Advisory Boa rd expressed the 

feeling that lower nrices and greater buying 0 1'FJortuni ties would 

accrue to the consumer, a nd therefore no atterrmt should be m8.ne to 

check or stan the nractice. 

My own and industry's belief is, th2.t sending out consignment merchandise is a bad oractice, one that should not be encouraged, ua rticularly with style merchandise for such goods often become obsolecent over night or almost so. 
- 96-

It is not the funct i on of a nroducer to ~e l g ood s t o t i1e ultirrf te 

consume r . imsel f , he i !". se do ~n ge<' red ur) fo1· i t. Such g oods need 

selling 1-1nd c 11 t h'l t tl1' t v:rord i mrylies. Th i s t he mR.nufa cturer 

canno t do . I f H distri but or h,'ls h i s mvn mone.y invested in mercha nd i se he h~ s Fln u rge to ~e t oehind i t to get it into his custome r s 

hands as aui ck l y a~ 'Y)Ossib l e , whereFs where a ll t h e risk rema ins 

with the nr oduc er the r etc:d l e r i s no t so greatly conce rned . Consignmen t goods sellin.c: , n l aces almos t t he en tire nc? ncing of the 

r:terch£1ndise unon the ,-~anuf urers shoul de-rs , why t l1e n t he r e t a iler? 

JflA nufac t urer s of hand ba[-:: ~ :1c>.v e given i n t o t h i s mode rn ur::>.. c tice 

nevf- r gr~ ci ous , ho1J1Tev e r, ,qnd ''-' e l c omed t his clau s e a nd ,..,hc=t t is more 

used it. 

Sec ti on ll p rovi deo f or cash coun t~ of 3/10 e.c. m. no a nticina -

ti on P.t the r a t e of ~ pe r Fl.nnum. 

Thi s n r ovisi on was working very we ll 

it rasa re t u r n t o f ormer t e r ms use~ 

1 And 2 , an~ nage 116 t~ s h i s t ory). 

ning it was a ccepted Rt the end . 

a t t he clos e. Industr·y cla imed 

(see F.xhi 'o i t G, p p . 226 'Y)c?.rs. 

Fought b it t e rl;r a t the beg inSecti on 13 f orbade t he a cce'Y) t ance of retur ned g oods a fter a period 

of r.ot mo r e t han seven ( 7) 0ays. 

Ano t:ne r g rowin.<; ev il trea ted on ')age 67 t his h i s tory . AccentPd much 

mo r e read ily at t he clos e than begi nninr- . A nd nrovision u nd 

f ound t o be gener Plly wor khbl e . 

Tl1e sec ond ame ndment t o t he code 'rhich unfortuna t el y wa s not Pnnroved until a f ew da ys !'.1e f ore t he Sunr eme Court decision is tren.ted on 

ge 69 t h i s hist or y . 

-

- . OTHE~ 'tOV SIO :':S 

ComT)liRnce co c1 s i ndi ca tP c? n almost cleAn bill of hea lth :~~ i th resnec t t o b oth Class A c?.n0 3 'lr P! de Prc' cti ce Provisi ons . It is to be 

honed t ha t c? reade r of U1i s h i s t or y will not conclude the industry 

were sai n t s for t h ey were f8 r fr m:-1 tha t. A Directora t e howeve r, 

i mbued 1'17i t h a beli ef i n the va l ue of sounc~. trE•de urPctice in genera l 

and t he ir own Tr ade Pra ctice ur ovi s i ons in uR.rticula r, corrective 

in the i r atti tude , wc?s l a r ,q:e l y r esnonsibl e fo r the nretty clec:m 

chRr ge sheets. All of t he clAuses c ontai ne0 ha d a vnlu e, some a s 

no int ed out nega tive onl y , but even s o, worth while. Oth er va luable 

ryrov i si ons woul d l~ve b een added , i n f a c t were we ll on their way to 

an-ryrovc? l a t t he end , and thes e woul d hav e rna t e ri8.lly strengthened 

t he industry ' s nosition. 

l~ Hedge Clause 

Jane su ch in thi s c ode . 

~enera l Conc u~ ons 

9811 
,, ,.. ~ 

1 .. 1 L • 

(~ 0 rn . 

- 97-

"r:ri tin:: s"1.o1...~ ci be RT)"'ro< ci.1ed r.mcl1 more. ci.,..cui~S"l')E' Ctl :r thAn it 

~"+ reElte:r ·rno~ le 1rre of vi t P. l stc- tis tic's ··af <"l n inr1 ustry must be 

~he h i stori c ba ckgr ound of ::n inclust:y must bP cleE~ y E~ c1 

S1onsors should be r e Ci uired to g ivP this i :i.1f ormr ti on . In n.Clc1 ition 

t::ey shoul d st te the T)rRctice~ followed Cl nn the evils the ~r wish 

to correct, nuoting cha"l')ter e:nd v erse in su,)·0ort of nasi tions t aken. 

For ex2mDle: Had the Adr.lini s tra ti on ·oeen iven 9. geogr aT)hica l lis t 

of 1i'P nufa cture r s Pnd their enDr'ox imE t e nr oduction to ther vri th a 

breakdown of em1)loyment i n the f< ctories, mc:tny of our oifficul ties . . ' 

in de t e rming ing VI::tge nn d :1o:ur ou~s t'ions woul cl ha vP been e limine. t 8d 

a nd t l1e r eDresent "' tion nuestion s;ettlec.'l a l mos t out .of hPnd . 

Te·r.ms c..nd Discounts cou l d. c. lso h<' v e been ~ettlec auick l y hc> el we hfld 

rea l f E.t'cts in t~.e 'Jegi_nning .· 

As it develo"l')ed Uies e cues·tions 'ere in t h e mn in ~e t tlefl r eC!sonc:tbly 

ancl ~e ll, but one n~ot but a dmit tha t conclusions me r e bqsed more 

uuon a muc1 0ling through nroce ss r a ther t"!.1a n a n orde rly scientific 

one. 

Industry wants self g overnence, f1 sound ide<"l , but only in so f Ar a s 

they re T) rena rec1 to accept fi n obliga tion should it be g iven, for 

im··)lied in thP.t c> re the uren<"rator;r stages a nd thes e should be t A.ke n 

b efore c:tuth ority i s g iven. 

S"l')ecific ~e commendr tions 

The bringing toge the r of l Abor 8 nc1 ma nufacture:rs on Code Authority 

EoPr o's while. the reticF~ ll y sounc1 in m:-inci1')le does not •vork out 

sc- tisf ctorily in nr8 ctice. If ::.11 we r e norma l in their menta l 

nrocesses, or to T)Ut it a na ther vrfl.y, if they could forg et T)Cl.S t 

oiffe renc es , T)erhaus it would l1ave worked bette: . Unfortun<"ltely 

thi~ frP.me of minn fl i d not ex ist ~· d it was too much to exnect thEl t 

it should, a t le st in A short sDace of time. The Mrmufa cturers 1 

gene r a l a ttitude seems to be tha t l Abor ha.s some loathsome disease, 

whi le l a bor, c:tnd I 1m now think ing only of ~1 s n rticula :r industry, 

a cted .in ny~hing but a co ncilia tory ma nner, a nd as if they felt 

tl?-ey we re clealing with 8 lot of s o c> nd sos. Gooa reas on s for this 

possibly, much to b~ said in extenuation for such I am sure, but 

ho~§ t he less it does ' not make for ,:~ de libera tion and order . 

In· P case of this 1.dnd, if Codes come back , I would strong l y urge 

that 1, bor representa tion come frou1, not the one r tt ting loca l, but 

one comnlct~ly divorc ed from it . Such men could advif e ''IT it~ the 

local on noints brought out only germane to this industry , uractice, 

etc . This will l)e objectPc1 to , if only on the score of cumbersomeness , but I am c e rtain in my own mind, tha t it would work, be fou nd 

in the end much s impler, a nd the beg inn ing of a b e tte r understa nding, 

fro ~n which would sDring good feeling be t wee n both. 

i~1os t ill feeling snrings from l Rck of k nowledge <"l.nd understanding. 

If a mental c ondition obte1.ins, tha t mc:tkes for closed minds, we c:tre 

not going to gain knowled(;e P.nd understa nding , hence friction and 

9811 
90~ 

confusion orse confounded. 

By-La~ s of Code Authorities shou l d cont8 in ~ provision tho/t code 

Direc tor s should be se lect ~d or elected by t he Code Autho~ity and 

hc~ t the rit;ht of hiring A. nd ~iring r ests in Directors. iin this 

p.'-\r ticular ca se no trouble in this r esDect developed, but in many 

indus tri es t h e Code Direc tor 1 s ··,ork ,··as bar1l y hampered by the _Code 

Authority ' s insistence UDon co:.trolling emoloyment of the entire 

staff, a nd thus wP..s deve loDed wh:=J t in effect was a.n industrial 

nolitical ma chine, one r esented b y Industry. 

A. Undesirable or Unenfo rce ~le Prov isions 

So~e nrovisions in t he Trade PrRc tic e division of this code a re of 

cou r se unenforceable and yet their inclusion does have a moral effect , t herefore ~1ey should be incluoed . All know the imoossibili ty 

of i mposing enforcemen t l0 Y~ 'Jut no · memne rs of indus try that I ever 

me t, a nd there ,. ere mC1ny , ~ut <'1g reed t :1e ir effect wr1 s g ooo.. Of my 

O'vn k no·'rl ed g e , this indus tr:' 1 s Cod e Dire ctors have, through all 

sorts of chenne l s , more or le s~ ,.;evi ous , kent close wat ch nd were 

successful in checking , to an im~ortRn t d egree, a straying from the 

str ht a nd r: ow uath. Com~ nce r e cords sho~ but 4 comDlaints 

but I know of 111E' !l.Y ~:a t .,ere cl" c~ <: 8d '"i thout fo rmal comDlaint being 

m'3.de , and of the se we .do not hP v e record. 

B. Conml i c:.nce 

As I have stated in "'Jr evim:ts chaD ters, due to t~1e careful wa tchfulness of the Code h.uthori t y st tff , c omnlia nce s t a nda rds were high. 

Attached as I was to a nuinber of i nous tries , r:Jy opDortunities for 

corrro<'.rison we re grea t; a na it ca n i)e sa id that if t h is l)roblem had 

bee n ap;)roached else'."'b.ere a s here, much of the friction develoned 

would not hPve existed . See uages pO , 5ls 59 • to 61, 63, 96, to 98 

this h i s tory a nd Fxhibits C, :? , ~, l.. f or d eta iled uBrticula.rs. 

C. Limita ti on on Produc ti on 

T-.is vras never a ttemD t eo either in t h e Code or otherwise. 

D. Possibl e Code ·con solidP ti ons 

The Luggage 2nd Fa ncy Lea ther GooCl s , a nd Mens a nd "':romens 3el ts Indus tries should have be en consolidn t e d '7ith La di es Handbags. All 

follow in general the sPme f a.ctory nra ctice, the same tyne of ind ividl1...1.l s c omnos e the diffe r ent g rouos , a.nd distributive channels 

used <- re the same. ~re( e Pr~ctice urov i s ions would na turally need 

some adjus t r:1e nt. From suc~1 a g r oun ing, strength would come to the 

Code Authori t y 1'11Cl.ch ine itself, e nd what is e oue.lly imnortant, would 

enab l e the Dr e fentation of v united f r ont to distributive grouns, 

a nd thus more aui ckl y bring be tte r Dr a ctice. As set ~) today, each 

g r ouu , a senar <'te entit. , a r e re]J'I tive ly small a nd therefore, in 

their rela tions with the nowerful well fina nc ed a nd entrenched buyers of t hei r me rchandise, Etr e eP s i l y brow·uea ten into the following 

of ba d Dr r:tctice. 

9811 
-99-

Wage and Hour Provisions 

In t he light of the Virg i nia Art Cas e ref errPd to on nages 58, 95 , 

96 , this history and sho,•n in :Sxhibit A.l. One is temnted to say 

wage ryrovisions as se t u~ we re sound as aprylying to ever y ne rt of 

the country. There ~as ho ever, brought i nto that s itua ti on a 

f a ctor tha t c ould not be used in a ll cases, the inj ecti on of a 

aualified expert on f ac tory nr a ctice. Since such is not nossible, 

Pnd since we knol"17 "!'Te a l ways have with us loose f a ctory or gani za tion, 

I ar.1 inclined to ·be li eve a diffe r entia l fo r ma rke t s located away 

from a ccent ed centres of e particular indus try, of a particular 

indus try, should be includ ed in a ne111 cocl e . I think a ls o tha t hour 

tol Pr a nc es in the neak neriods of the t wo selling se~sons, is a need 

of a ll high style industrie s . Could this ha ve been done , a nd a n 

average struck for the year by lo~e ring t he number of hours a llowable in off seasons, indus try ?.nd l abor would come ne?.r e r a n annroa ch 

to neace. I know this is not the whole a n s1111e r but it i s definitely 

lead ing t_. ~ way. 

~~ay I conclud e this history by exnressing my own feeling ab out this 

indus try. Utterly demornli zed a t the beginning of its code life it 

bec< me united . Sta rting with nothing in the way of f a cts a nd figures 

it l a id the found a tion stones a nd built an a~1nreci ti n of the value 

of such f a cts . FReed ry ith many serious nroblems it t a ckled them intelligently, a s will be seen by a ca reful ~erus l of the Exhibits 

contained h erein. Industry mora le non-ex istent, came into being, 

c· nd I feel t hat the industry, in making these firs t s tens , h&s a 

right to be -oroud of itself, a nd t he Adm1nistra tion in the great 

heln it ex tended and gave has the right to be nroud. a lso. 

9811 
-100-

Pi~RSON~~EL 

9811 

I ,. ,, 
Division Atministrators 

-· D. "'ihi tesi de 

Sol Ro s e 1bla t t 

Geor_ge L. Be rry 

Pr entiss 1 . Co or.l e y 

::. L. i:1cent 

:Je Juty AC::.Inini s trators 

Dr. =arl lJear~ Hona d 

De.qn EG.\7a r<is 

:arry S. Be r!'y 

i7 alter ·. angurn 

.Assi st&nt De·1·u ti e s 

J ar1es C. ··;o rt lY 

DaTit. Barr 

eich ::: . 'Jre 

Ai G.£ s 

Jana Hill 

~e :.: al 

G. U. Barenboim 

:o bart ~ e 7111an 

Cm sUP.le rs_ A~vj.. s o ry Eoard 

- 101-

~.esearch f:.:. Pla:·u. in-~: Division 

Gr e tchen D. Cw1nin_.,;h21T1 

Labor Advisory 3o~~ 

Rose Schneide~an 

Pauli ne Gil bert 

J osep:1 :Srod.insky 

SBll 

From 

Auglst 1 1 19u0 

::arch 16 , 1934 

_ugust. l, 193L..: 

~st 29 1 193~ 

Apri l 1 1 1935 

::arch 15 , 1904 

.A:u.:;u.s t 1 , 19 3( 

.Au.;ust 28 , 19::;.; 

i ·arch 31 , 190c 

:.:ay 27 I 1935 

I 

Au.g-o.st 1 1 1933 Ju.11e 16, 193<- 1 

Jlme 16 , 1934 Au~~ st 1 , 93~ 1 

Au . .:;u:: t l , 1 J 34 J a.nuar;;- 28 , l9 0~ ; 

i J c:;.nuary 29 , 1S35 a-J 27 , 193: 1 

I 

l 

J 1:1 3 1 19 7 3 

J ·ne 16 , 1 934 

A:u.c;us t 1 1 19:3-.: 

August l , 1g34 I Au~~st 1 1 19~ 1 

Janua ry 28 1 93 I 

Jznuc:-ry 29:, 1935 '·ay 27 I 1935 

August 1 , 1933 

ugust 1 1 lS34 

Au.gus t 1 1 193L= 

::ay 27 , 1935 

August 1 , 1933 . ay 27 , 1935 

August 1, 1933 ·, ~ay 27 I 19::: 5 

j)ec enb er 8 , 1933 

DE:; c e .. oe·~ 8 1 1933 

July l , 1934 

J 1.me 30 , 1935 

June 30 , 1933 

'.·ay 27 , 1935 
Industrial Adviso~r Board 

Max Berl::ouitz 

Max Ueyer 

E. 1. Jfri c s 

J. H. Dc; vis 

Brag ; Comer 

Houell Cheney 

,fi.. G. Son 

Adn inistr 2.tion Liembers 

0. Vl . Pearson 

(See: Reports Exhibit N) 

Dr. PaLli Abelson 

9811 

-102-

From 

Au{;u.st 11, 1933 

n~ il 11 , 1934 

,~ E:; 28 : 1934 

A-.1, .: ~ t l b ' 19 34 

Oc ta o9r 27, 1934 

n~u ~y 16; 1935 

Fe0rut..;.ry 1 , 1935 

Ap ril 3 , 1934 

May 10 , 1934 

l'iay 1 , 1934 

To 

Apri l 1_, 1934 

June 28 , 1934 

Au st 15, 1934 

Octobe r 27 , 1934 

Jano 16 , 1935 · 

Febo 1 , 1935 

l.Iay 27 , 1935 

l,!ay 1 , 1934 

l·.iay 27 . 1935 

}.iay 10 ' 1934 
-103-

E X H I B I J1 S 

9811 
9811 

-104-

E X H I ::S I T 

Le tter of TrPnsmitt2l 

Excernts f r o.J ori :e;l!!,ql coces su o:ni tted 

t• 'FlEJrts 
-.LU:JEXIIIBIT ~A 

PAB.T I 

co·[, OF" :i!'AI H CO'.:P.c.;TITION 

for the 

LADI:..S .Al vBAG E-Dl;-STRY 

Q} _ 

LETTi.R OF" TRk .li TTAL 

Nations.l :g_ecovery Administration 

Washin ton, D. C. 

T~1o Associated. Hanc:i.bag Industries of knsrice, Inc. submits herewith 

a CoC..e of Fa.Lc Compe.ti tion for approval by the President. T4is Code nas 

adopted at e .;eneral me eting of th e Association. 

The As Gociated Hanclbag Industries of .America., Inc. i s an o r ganization consir.til1c; of manufac ture rs an6.jor vii1o l esale cJ.istributors of 

ladiGs :.a:r1c'.be . .=;s, po cketbooks a.r.cl :_Jurses , rcpro 1t ng by volume of 

business a J Ot,.t seve· ty-nine _tJCr c t.:nt of the inccu.s tr;y ; the Associ a tion i.s 

national i n scope anC.:!. i.1as a. mor.1bersh ip of 100 conce rns throu ;hout the 

United. States. This or:_;anizatioi·1 r1 a.s incorporat ed J une 1<1 , 1932 unc.er 

the lans of the State of New York ; its obj e cts are quoted herewi th from 

the By-Lans: · 

9811 

11 T:1e object of t his Association shall be to s e cure ancl 

provide cooperation and '-Ulited effort in a ll matter relating 

to the )roc;ress, dovel op111Cnt , \-rt. l fare o r improvsmcnt of conc:i.i tions i11 the Hanc.bag Inclustry ancl. Industri e s correlate d and 

co::.1tribt· tiT. ~ to ancl. affectin~ tr.e .~ farc and p rocress of the 

Hanc~ ag Inc~ustry in all its br anches; to foster t he trac.le and 

COIIlDercial interests of its members ; to secure fr qe dom from 

unjt st anC. unlanful exactions; to inculcate and mai n tein just 

anc!. eqt,_ i table principl E;s; to eliminate unfair or improper 

p ractices; to est a ulic.-h and mc:li n t a in tmiforrni ty and equity in 

the C",1stoms ar..d c onr.1ercial usa ".;;L s of t he Industry ; to acquire, 

preserve , c oll ec t and C:..i s s eminate business .. i nformation, deeme d 

usef1:.l, ac!.van t ageous or valuabl e to ~ memb ers r egarcUng the 

Ilc:-,.nc".bc· ..::; L :.c'.ustry; to reform, corr e ct and prev ent any abuse and 

aC:.ji..~st coriJElercial controver.si es , misunderstandings or grievances 

betne en :nembers o r be t v!een its members and the tro..d.e; to enforce 

its saic-:. objects anC:.. pu rposes 81!10nt;; its members by such dis ciplinary 

anc!. oth er mGasurers as may be agreed upon bJ them ancl as may be 

~• roviclec~ by its By-Lavvs ; anc" .. in general to do all mat t ers tending 

to the im~)rovemcn t of the HanG. bag Indus try in all its c ommercial 

as Jects . 11 
- 106-

The Associat ed Handbag Indust ria:~ of America, Inc. affirms that 

it is trul;>- r eprt-s entative of the industry , and G.oes not impose any inequitabl e:; restrictions U_:Jon membe r ship therein. 

Tlw hc:nc~ba(; iildus try b eing ess n ti ally a handicraft one , a.nd 

subJECt to fl~c ating styl e tendenci e s, has b een particularly aff e ct e d 

by the cco11.omic dep:cession of the J c:.st fuw years, and has been pec:uliarly 

subj e ct c c:. t o unfai r anci uneconoE1ic tra de practices, such as pric e cutting, 

C:umpinc; of m•.:. rcl1and.is e , r ebat es , e tc. The Associati on in presenting 

this Code f o r a.pproval, b e li ev e s the.t it will restore tht. p1..1.rchasing 

power of ·che E:!11ployee s of the indus try ancl bring comploY'Tic.n t up to the 

1929 level, and r estore the ind,J.sL·;y- to "-:1. t s former hea l thy C0!1Cii tion. 

For 1Ul"I10ses of iU.entificatiolJ. , the following stc?.t ".mcnts are numbered to correspond with the articl t s of the Code . 

Articl e 3. 

The employment of minors undc1· tl: c:: age of 16 has n ev e r been 

prev al ent in t he handbag im ustry , but in orC.c r to make certain that 

this abus e c~oE::s not cr e<.:.p in , · the lln_ployt, t.nt of minors u nder the agE:: of 

16 is -Jrohi bi t ed. 

Article 4. 

Accor0.L-J.g to our bl:.st info:cr.1atio?1 , ap_LJ roximatt- ly two-thirds of 

the industry is locat~.;o. outsiG.c. of l~cw York, and. the minimum wage paid 

is $7. 00 p e r YIE::<..k. Th~..o e stablishment of a minimum wage of 30¢ .P e r hour 

outside of Nevr York represents an1 increase of approximately 4~ and in 

order to com:98nsat o for t h e C'ciffor nc~... in living costs in lJew Yor_-k Ci ty , 

a di ff oren ti a l of 20% is pro vi d8d for. 

Articl e 5. 

The nL:.;.nbl.;r of hours uo rY.:od pu.~ ne ck in th o indus try ranges 

from 44 t o 54 , nnd in one:; or t "ro htstanccs highe r . The average numb e r 

of hours norl:oc~ p e r VleLk is approximatc~y 48. The r educti on i n working 

hours to a mi nimum of 40 or an average r eduction of 2(}%, will provide 

for an increase in cmploymGn t sufficient to provi d.c for the unemployed 

workers in the industry. 

Articl e 6. 

In orde r to idDntify a ll pocke tbooks and hru1dbag s as having 

b een manufac turcc3. undc r tho conct.i t ions approved by this code , it is 

provide d_ t h at all handbags and pocke tbooks shall boar an NRA labe l. 

The publicity givE:;n to all products \':i th an NRA labl c will t E:nd_ t o 

increase the salE.: of su ch products, nhi ch in turn will make it possibl e 

for tho industry- to pay the vJa._;o s as cont c.mplat E:.d unde r this Code , and 

to talcc up the unemployed in tho indus t ry. 

] 1 
-107-

Articl e 7 . 

In orcicr to mru<e cffQctive th ~ prov isions of this Code , an 

ac1ministrativc. body to b e l::norn as the Handbag Code Authority is s e t up. 

This Hanc\bPg Cocic Authority, r·hich shall b e truly r epresl.m t ati v c of thc 

industry, ni ll be emporrc.reci to ma2.-c c pruvisions for tho enforcement of 

this Code , anr. to make 1~ Cl1 rE-commcndati') ns to t ho Administrator as me.y 

be nc..cossary from time to tine . It is c ont c:.mplatcd that conC.itions may 

arise r1hich .-; ill tCl ' to obstruct the smooth op e ration of thE.: Code , c:md 

it 1.7ill b e the:. C:.uty of the Handbag CodL Authority to inv ·stigatG a nd 

r E- cornmcnl'. the necessary rsme dial mc c:.sures. rfo that end, full r ep o rts and 

data arc t o be f u rnishcC:c by members of th..: industry. 

Article B. 

The Natio_1al Industrial Recov e ry Act do c s.not r c q·J.i r '-' rr.anu:factur c rs 

in any industry to hold memb e rship in the Association , but the. Code 

beinG ac'hni::.ist ercd for th c b Gn e fi t of tht.; industry , it is only .just 

and. proper, t:u) t cv ry IJ c rsc·!1 in the indus try pay his proportional share 

of the G~i~t eian cc of the machine ry nccc sGary to uffc ctuat e th e provisions of t11is Code . 

Articlcs9 and 10. 

A tru.__ k.1or~ edso of costs is ab s o lut ely c ssL-ntia.l to thG nc.lfare 

of any il'2dustry. Price- cutting a nd c .x c cssive va lues al'C v e ry frequently 

due to a lack of true knonl edsc. of costs. 

To insure the industry aga.i nst unfair compe tition rcsul ti ng from 

lc>.ck of COi.1plc t c. knov1l odge of costs end in many i11stancos from no 

knovJl cd:;o of costs at all , the Association will furnish uniform cost 

shee ts to e v ery manufactl,uc r in the industry, Thc s t.; cost shee ts \'!ill 

be aprJrov cd by a coTilr.litt cc of the Ass ociation and ·:~ill b o bas ed on the 

cost syst en non in usc by thG various rne.nufac turc rs in the indus try. 

Articl c 11. ~-----

For ye2.rs the industry maint a ined its cash discount on a basis 

of 2/10 / 50x and tht.;n chc:mg --d to 37~ E01I. During th -- past four years , 

through unfair p ractice s a nd gr c ul. on the IJart of t hG nanu factur e rs , 

cash discounts have ris en to 87~· a:r.d L1 some CF'.SL.G as high as 10%, and 

this in vier of possibly only 1¥o ~.- :-> rned. i n dis count b y the mE!nufactu:rc r, 

on the ~sic of his sal e s • 

.. This ·,·Jick differenc e ·b ,t'.:cc. n the discount c ar;.1 c d b;'.f the manufacturer o...1G. the cliscount he is ccm:p c. ll c d. to c;ivo , is un·:ra:crant od and 

uncall oc for , ancl it is a sourc ~ of 6rcat loss t o the industry and must 

bo correc t e d. 

Unless c ash discounts arc. absolutely ur ..i.form throughout the industry , thG tGDptati on to use various discounts .'!i thin limits sot is 

a form of r obo.t c . 

9811 
-108-

Articl e 12. 

This o.rti cl c i ~~ design ee'.. t o prev ~n t t h·.:. o s tabl i shmon t of substan<larC:. s:10-p s in tho indust:c·y by lPr ~e consume rs of the industry' s 

products. The e st ablishrnLnt of suer.~,.; opr. , \"Th ich r.r l., t emporary in 

ne.ture , C~O CS mo r e hn.rm t o the J.ebi ti .. !~t..__ Lmpl o·y._, rs in the i:.'ldUstry 

than <.'llZ' o th..__ r si ngl e f2..ctor . TJt:~ to t!1ci r t empo r a ry charact er , 

cffe ctiv0 con trol is e.lmost imp0ssibl• , r>.nd in orde r to do ar~ay n i tp 

this evil , thi s rticl ~..- p=ohibits such racti . 

Articl e 13. 

One of the gl cat ost lossLs in the i :nC:ustry has r Gsul t e d from 

ovor-p roc_·uc tion , r;ith th e s a cri £ic'. ng of g ooc.i..s at the b ..... st price s 

obtainable in:.an ina cti v e market , o.nc-:. t h e cons ocr :ont o~.-!G ring of standa r ds of vc'.l uos. It is cont crnpl ntc.d th".t the. '=anclbr.g Codo Autho rity 

r~ill mo.inte.L1 <.'.. cl o s e s-v.p c rv1 c i o:"1 t o provl nt r-proC_uction, ni th its 

tt ~n o..r, t l o ssGs t o t he industry . 

Articl e 14. 

The Hc.ndbc:> g I nclustry is r<:uticul E;.rl y one. of st;yl c an<l s e ason. 

The. inGr:nui ty and Crl.ati v e ability of ~ ny 1:>e rson should b e IJro t e ct vd 

f or sufficil.nt t j_mc s o tho.t t he ~inn r 1nay r oap the. full b e:nefi ts 

of his cr c..~ ti7 G o.bility. 

ThG uast c..ful prrcti ~. new· provnl .cnt in tho industry whi ch result 

in s CV ·- re l o ss c.s t hroueh rno.r k do'.711S t o manuft'.cturo rs .:md r c t ai 1 c rs , 

due to l.U1i'letrrc:mt c.. d. n.nd. parasi t iC C0~.i ying ,"nd i mi tF.t.t i ng of diStinctive 

styl Gs ori:~inatGd ~-' m~nufactu rs in th o ind.ustry , mu st b e climinc>..tod. 

This practi c e c onstitut es unfr'.ir c om1)cti ti on 2.ncl. it is :~~ P..inst the 

i nt e r c.s t s of a ll t he. mo.nufp ctnrc rs. i n t he inclus-r, ry. 

In o rdc.. r to c arry out the n, t:1.:' II rnrlb<~ &ode Au tho ri ty n ill 

ostablish r.IJ.d rnc:>..i nt P.i n a REGI3T::A'liQ}T i3UR2AU • .Any person may r egiste r 

with the B-J.re:.u my o ri g i nal dL s i t' 1 , :m:.tvL'ial Ol' pro c e ss. The Bureau of 

Registrati on ·:~ il l elsa bL av a il a bL , t o [·'ly })·..)rs on, t radL. o r industry 

s c l l i n:2; to tl~~ l a dit...s ho.ndbc:>g industry, ·. ·ho \7 i shes to r egist er '.7i th the 

Bur eau any fr arne, pny o rig ina l de si gn on l eathe r or mat e rial, or original 

proc e ss. 

p __ rti cl e 15. 

The tl'r.. ~..- prrctic L; ruJ.cs un<h. r t :1j.s o.rticl c , such a s r e b a tes , 

c or.sibmncl1 t s cllL:g, unjustifi ed r eturns , ·o r ,. <t. ch o f contra cts , <lofamation of COElpcti t ol·s , c-:nc c. ls c or ox2g6 l., r o.t od a dv e rtising , ':JCre c.doptcd 

by the As so ci::.ti'Jn a y ea r ago , and a r c sub stant i a lly i.dL>ntical Hi th 

provisi on s apj_)r ovod by thG Fcclc r a l Trade Cormnission for similar industrie~ . 

The eE :ai~1ing s e cti ons of the Bock a r e mandatory provisions 

of the Act , _q....11tl do not r equirG any <l i s cussion . 

9811 
-109-

It is the purpose of the Association by this Code to regulate 

and corr e ct thes e abuses. The Associ CJ.tion is both r oady and e..blc to 

assume the task of and the r esponsibility for , the rehabilitation of 

the handbag industry. VVi th tha t end in vi cn , the As s oci a tion stat e s 

1 

that the Code of Fair domp Gti tion herc-1Ji th present e d, ':Ji ll no t t t:!nd to 

prorr.ot e monopoli es nor oppress or discriminat e a;ainst small busine ss 

enterpris e s, and that it ni ll be fa.ir to c omp e titors , empl oyee s and 

consumers , a like. 

!August 28, 1933 

ks.i: AS 

9811 

Respectfully submitted, 

ASSOCIATED HANDBAG I l\IDUSTRIES OF .AMERICA, INC. 

(Signe d) ~.1auric c S. losesson, 

Executive Se cre t a ry 
- ...:. . .J.. v -

2XE Ir A 

f or the 

LA:U IS3 I i.L PSrRY 

;_co ef fec tue t e t :1e :.Joli cy of Ti tle I of t he ia tion l Inc.u s trial 

F..ecover r 1'_ct ~ t >.i s Co r" e :_ s set u 0 £or t ,:e 1ur:!o se of increasing em-

:ploynlf'l· ... t , e s tal: l i sl:i r:.:; fe.i r o.m". ~-<~ e -~-J.e t8 '-.-ages, effecting necessary 

re c~uct io ~. of hours, ir·1 ~ro vi"L1:::; st J.l~.r"; ~·{ o.' labor , c; nc_ e llminating unfair tra.de -)ractices (etc .); to nC'.Ll ~e ·1 ;:>_ !'ea~onc·. bie or l ance bet·ween .J.. 

production :~ nc~ co 1su".ption , c;m r to r~~s core 1e incomE: o: nter~Jr ises 

within t he inC..ust:cy to l evels , ·hi clt '~ri ll ,nake }'OSfji bl e the payment of 

such wa.:;es ani 2v oi c~ the fuT:.L18 r (. ~· J. tio !l a nd. f_-:;s l~uct ion of cap ita l 

assets , to t~ e 8nd of e:1 bil~ :-a.t:.ng t~1e l1anc".b8 _; incus try and_ enabling 

it to C::..o its pe.rt t oHar··_ est ~ -J li s~~:l.i.1~ t.L12t bal e- nee of inc:o.stries w:1ich 

is ecessa.r · to ~1e re stor at ion anc. maintem:.nce of tl: e h i _gl:est :pr a c t ical d.eg:r ee of :~ub lic welfare . 

I - DEFilHTIO:?S 

T..1e ter:-:1 11 hanc"_ba.;; i nO.us try " as useu. h erein i s defi neG. to mean the 

manufo.cture a.n G../ or ''~ wl esa e di strj :·mtion of l a.ci.ies ' hand~ags , p ocketbooks c:mC::.. ~')urs s. ~1e t e l"Jl "ner son il a s usec1 herein shall include nat- l ' 

ural persons, pe rtnershi _::s, asr:oc iati.ons anC"c co::.~ :) or ations . The tenn 

" empl oyer" as u secl l1erein sl.e:•ll LJ.cL:; e ever 7 p e:::son a~t ivel 7 engagec. 

in t l1e ::_):roC:.uc tion o..ncL/or who l esa l e cl.;.strib"Ln ion of pro cl"'-lCts of ~:1 e l1a.nclba;- i - c.ustrJ as h.Jrein defin,::;c.. T'.r.:. e tern: "effec tive da te " as used herein 

is def nE..c . : o me::Ll ~1.e seconci. !!ono.<._;_y afte r this Code shall have been approved by ~e Presici.en t of t~e Uni tet St c~u . 

I I - As re quireC::. by SE..c t ion 7 (a.) of '!'it J e I of Jche l!a t iona l Ind.us trial 

Recove r y Act , the follo':..rin.; rrovisio·ns B.re conc: itions of tl:.is Code: 

9811 

11 (1) Tl--.at em: loz·ees s:1..a.ll :1nve ~1~ r~gl-l t to organize am. 

be.r g2 in colle c ti':e l :.r t~ :P_ ;l re _· re ::e;.~ c... tive s of ~1 eir own 

ho0sin~ aLd sh . ll be ~re0 ru~ t~o i~te rf erence , restraint, 

or coerc i o!: ')f emill_o 'e.L r. of l el;:Jr, or their eger.t s , in t h e 

c~es:~n _. tion of suc~1 re:·;J rese lt <? t1 v e s or in se}.f - or5 '-'ni za.tion 

or in ot':.c;r co nce r te0. 8.ctiviti es for t ::e pu :~ ose of collective 1)a r .;aining or oL1er mut ual a i c_ or p rotection; 

( 2) That no em lo ree d. no one seeking employment shall be 

require( e.s a conC:.i t ion of e;il}'ll oyment to joln any com::_1any 

u nion or to refr a i a fl~om ,jo .;_nLlr; , or.zanizing or assisting a 

l abor organi zat ion of h is O'i.fl1 ch oosing ; and 
-111-

(3) That employers shall comp l y with the ma;:imurn I-~ours 

of labor, minimum rates of -pa.7 , a nci other concl. itions of 

employrnen t ap~:'roveC. or p r e scribed by t h e Pr esi cl_en t. 11 

III - On c:.nd c:.fter t he effective ete , em:;?loyers shall not em:7loy 

an:r minor unO.e::: t:1e age of sixteen ( 16 ) ~ears. 

IV - On e.ncl a.fter the effective r_c.te, the minimum wage that shall 

be paic_ by a ny employer to any of their emyloyees, exce:pt lea rners 

C:.urin:; a tl1ree months a):prenticesiiip, sha.ll be at tl1e r a.te of: 

(l) 25): per hour when emp loyed outsi de of Greater New -; ork 

e.nc imrnediate vicinity , 

(2) 20¢· per hour v1hen employed within Grea ter New York 

anc"'- i!Thllecdate vicini t 1 . 

V - On anc afte:: the effective de.te , emp lo yers shall not op erate 

on a sche(ule of hours of labor for t J.1 eir emp loyees in excess of 

forty hours :per week , except in~ office and su ~e rvisory staff, ship -

ping <?.nci sales force. 

VI - LI CEJ.TSES 

(l) ?.eco.::;nizinc that the stability of the industry and 

the ability to carry into effect the :9ur:pose a no_ intent 

of this act depends entirely upon the comy l e te cooperation 

of all those engaged. in the hanc;_bat; inciustry a nd vd th a 

vievr to effectuating such complete stabiliza tion, a ll persons, members of the association set forth in t h is code, 

shall by _virtue of their membership be deemec collectively 

to Lave been licensed to cl_ o business in this inclustr-T under 

this act . 

(2) All per sons enga:;ed in the h a ndbag industry a nd not 

a member of the association na:·aed herein shall, p romp tly 

following the effective G..e.t e of t:1is co6_e , obt a.in ancl pro -

cure from the Administra tor, s11b ject to the :p~:;ll oval of 

the co!Thlli ttee, a license or permit thus to engage or continue in business, wl1 ic:1 shall be conc."'_i tioneci_ upon the 

obli_;ation of such ap:Jl yinc firm to com:;?ly with all and 

every pro vi sian of this cocle and t h e emenc~men t s her eof, 

a nC. such other a.nd further regulations as me.y be p re s cribed 

by tl1e COIThlli ttee toE;e the r with the Aclministrator . 

VII-a. ADMINISTRATION 

The Associated HanC:..bag Inclustries of Arne :-· icP, Inc. is hereby 

designate(. the agency for administering, su~') ervising and p romoting 

the performance of the provisions of this code by all employers in 

the hanC:_bat; indus try. 

9811 
- 113-

To effectuete the provisi ons of ~tis Code , t he d of Gove r nors as the governin.:; body of' t r e f_ssocie.terl. Hr·.ndbag I nc1.ustri es 

of .A.nerica., Inc. , is h ereby euthoTizoc1 to ap·qo int such egent s or 

agencie s: as it :fi.nds nc;cess a.:i:y , a nd t0 clothe tl1ese agents or a genc i es rdtl-: . ~_ e :-o'.'re rs necess2.r7 to carry out Lte autho::.~i ty v est ed in 

the Boa.rC. . Th.is a genc-r or agencies to have p l eaa ry powe r s c~ sole 

di scretion , anu t o be assist eQ by a n Advis0ry Counci l, c onsi sting of 

chosen re:r:;resent "'.tives of every ·oi' ?i.i.Ch of tl-~e i nC.ust ry , wh ic~1 will 

act unct.er tl1.e sole autl1or i ty of tLi s agent . 

( b) T::e Ao.visory Coui.1Cil iG hereb:v designat ed as a p l a nning , 

fair p r "l.c tice and control ling egenc[ for th8 i ndust r y . '.['hi s age ncy 

may fro:n t Lllo to time :;?resent to ~1e Ac'..n:inj_ s t r ator of tl1e i nr'l.us try 

r eco;n.11end.a tions be.se d U1!0n conc.i tions i n t" _e inclust:L , a s they may 

develop from time to time , v.-:1i ell Y. t 1:. b:;ud to effectuate t:-:.e ope r a t ion 

of tl1e )::.~ovisions of tho Co de anc, 1e _·:oli cy of the 1"3.tional I ndustrial 

Recovery Act , C~ d i n p2.rt i cula r 2.lon ·; the fo .J_ lo·ui n-:5 lines : 

( c) 3ec:>mmenC.ations for the m0~ :: in~ o: n,_l es by tl1e Aclministra tor 

as to rectices bv persons on ~g f i1 the hanC.b a~ n~.us try as to me t h ods 

an0. ccnL._i tions of trr>cL ing , tl1o n-:rri!L1E-:. :otnC. J. :?ortin~ of rrices whicn may 

be ap: ro~:riL'te to avail" scr~mL1at2.on to :promote the st abili zation of 

the i nc,_ .stry , to pre··.ient and elL indte u nfai r and destructive comp etitive p rices anQ ]rccti ces . 

( c.,_ ) ~econunend.a ions f or t he setti ng ur of a Se rvice Fureau for 

e nc i neerinf; , acco1.~nt ,::; , crecii t or c:my other purpo se s th3.t may aid 

the conc.i t i ons of this emerge11cy BnC:, the requiremen ts of t h is Code. 

( e ) P.ecom11enda t i ons for the ec uir n t by t h e Ac1mini s tra tor 

of l ice:1sinc: and reg i strs.ti on of :;:-.Jersons enga.t;ed in t he handba.g inc1ust r y not me1,1be rs of t:te PssociC'.t i on '1 a:Y ci ~1.e r~in to be rna/Le effectiv e 

as s-peedily as c2.n c onveni ently be ~·.on ::: t o t~1e end th'1.t t he p rovi sions 

of this Co o.c ma r 1ecome i mmed:i.e t elY oue racive . ~ . (f ) ?.ecomm"3ndJ.ti on s f or r e£;T1.l at i n,; the c~ -~ se l of c~ istress 

me r c:18.n(i se i n ~1e fa llowi ng we.y , ·oecause Uta. t vri 11 s ecure t he n rotection of the owne r s t .e r e of anr~ at t~1e same time p1~om te t h e ~ound 

and st able conc:i tions i n t h e incus try . Distre ss me rc:1ancii s e may be 

di sj?ose6_ of in t he fo llowing ma:nte r anc. clurint; t he fo llovvin0 periorl.s 

only ; ~e ne:::a l f a ll com::>etit i Ye ite:ns ':l.ftor S~lrist .. na.s , cenera l s::;ring 

comoe titiv:.; i tems afte::· ;: ~·. ;r , e.nc'. :,.ener -..1 SUI!liner com~Je ti iv ~ items 

afte1.· July lt t:1 . ..,.,,,.ary person is J.~arui:·ec: t o t. r e1e ~ci isory Council 

imme c:i 9.telJ a.fter dis.:_Jo si nt: o: ~. ist :: es s me rc~1a.nr'. ise , j obs or u nderpri ceC. mer c::.::.nc i se c~ ur n6 t:-1e perio~--s as above st 8 teet. , g ivi ng t h e 

following inform on : 

9811 

~Tame of purc~1Pse r 

Ja.t e of :purc:12.se· 

QtJ.e.n t i t r so l d. 

:?..eo 1lar L.Yr ice 

Pri ce at which sold 

Reasons fo r selling 
-113-

(g) Recommendations for dec:lling with any inea.lA.liti e s that 

\ 

1

mav otherwise arise that ma.Y endanger the ·stabili tv of the industrv 

1

and/ or product ion and emplovment. 

(h) Such recommendations, when approved by the administrator, 

shall have the same force and effect as any other ~revisions of this 

Code. Such agency shall likewise coooerate with the Administrator in 

making any and all investigations as to the changing· and observance 

')f any of the provisions of this Code at its own instance or upon complaint of any one of the members of the fore going Committee. The said 

agency shall investigate the matter or matters complained of and report its findings ·and recommendations to the Administrator for a"9propriate disposition. 

VIII- CODE ."REPORTS ANTI FEES 

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 as stated 

herein is being effectuated in the handbag industry; persons subject 

to the jurisdiction of this Code shall at its request make ~eriodically 

to the Advisory Council such reports on wages, hours of labor, conditions of ·employment, number of em')lovees, production, shipments, sales, 

stocks, prices and other data pertinent to the purposes of this Code 

as may be required; shall permit inspection of pertinent records by 

authori zed agents, and shall pay as a code fee his pro9ortionate share 

of the amounts necessary to oay the cost of assembling, analYcsis and 

publication of such reports· and data, and of the maintenance of s::>.id 

Association and its authorized agents and activities in assisting the 

National Recovery Administration in effect~ating in the handbag industry the purposes and req.1irements of the National Industrial Recovery 

Act as stated herein. 

Except as otherwise provided in the National Industrial Recovery 

Act, all statistical data filed in accordance with the provisions of 

this Article shall be confidential. 

IX - Each employer must use, keep and maintain uniform cost sheets 

as may be adopted by the Advisory Council. 

Every article sold by the employer must be figured on these 

cost sheets, which shall be kept in a lonse-lea.f binder furnished 

by the Association, and open to inspection in accordance with Article 

VIII. ' Every employer shall swear that these cost ~heets represent 

every article manufactured by him, and that thev are the true and only 

cost sheets kept by him. 

X - It shall be considered an unfair method of competition to sell 

products of the industry below cost exaepting distress mercha.ndise as 

allowed under this code and provided for. The Advisory Council shall 

formulate the method of determining cost and sha.ll take into consideration the following factors: cost of labor, materials and over-head. 

9811 
-114-

XI - It shall be considered an unfair metho d of comoet ition to shin 

handbags at whoJe •.> CJ l e , at t er:ns ot.her thC'11 3/ 10 e·.o.m. ; antic'ipation 

t o be al1ow8d et the rate of s~x (6) per cent per annum. 

. .. XII 

The f 1rrn ishi ng of l ea.:the r, fra::ne s, or other mat e riats to cont r act,cr.s . by e. 1 etailer or r e Gc;j_L :r s, a c~3.in store or gF·.i·~i zation, a 

resident b·Jyin.o.: of:'i c e or a rr;ail- orcle:-- house for the rrpose of ·having che3e mate ri e~:. s ma-le int0 E. f i :-...i sl"e c. prcd.uct for · the use of the 

said ret[lile r, chain store or ~c:L tlLc.a-r :;.'o ·!~ , :re, ·; :dent buying office or 

mail-orde r Louse, is onsi E.· ~~cl ar. u:rdair trade p ractice. 

The contr::tc t or is hereby clefj ne d. as a p e rson emuloyi ng labor in 

the ma n'J.fa.c ture of the p ro due t;s vf ~he inc"..n8tr y, who does not make a 

p ractice of 'Juying his ovm a:a.;_ ~~~rls Qr to whorr: materials are consigned 

for the purpose of making them. i nto iri is hed uro duct for the consignor. 

XIII - To effect the de ~lare d J u-rp _o se s 0f th is Code in r espe ct to 

maint c..inin.!S a re aso nable balanc~ be tw.ee n the product ion and consumption 

of l acli es h<1nd.baps, the industry goes dn record a s · in· fa::r()r of a control 

of pr~duct ion , ~he me tho d. of' the .. co;1t!·o 1 of proc.uct ion · and the effective date shal l be determi ned by the Board of Governors·. · 

XIV ~ REGIS~RAT. IO N ... 

In orde r to u re>tect origina1itv of d:e.si.g'n , mat e riids or ) rocesses, 

a Reg istratio.n B 1reau is he.r e.by est'abl'is·h.ed.' · . , •' . . 

Any orig i nal .ar.ticle ,. _de_s.i g O:,· m~t'~~ :ti ::t l' or '-9 r6ce ss may be regJ.stered by anv per sen in the i ndust.'ry or b:{ any' p.e.rson ··who' sel1s his 

product to the inclustrv, and vvhe n so ch r regis ed wj th the Re g i stration Bu:re ?.u , it sha.ll b e 9ro_tec te d , a,sa ir: st copv i.r.g fc r a -pe riod of three 

(3) months from the date of regi.stri:-~Lio , an'd ·.- 0~: ers;~IJ s are ·o rohibited 

from copvinp s·,_cn r egiste·red P...l~ ti ci'· , ... C:e~J . .e;n, ri=r e.rial o·r p rocess, or to 

purc h~ se a c~9i or imitation of such e~~s~e red ariic!~, design, material 

or ·oroce ss for q. ~eriod ,qf thr.e~ (~) months from the date of registration 

thereof , · · · 

XV - TRADE PRACTICES 

(a) The ma.kine; q~ _any s e cret '-paymen ts or the making of any allowance of reprte s ' re fun~s ·, Jomn1i ss :ons' ·or 'uriec:trned discounts' whether 

in the form of monev or othe~wise; o~ · t~e i~c ei ~itensi on to certain 

purchasers ~f special rv ic e~ or ·privileF;e s hot ·· extendeq· to all pn~ 

chasers, under l ike t e rms and cond.i t iuns , with the'intent and with the 

eff ect of ir.jurin,.:; a co m?,et i tor :1nd. whE? rE: the effec~ may be to substantially l esse n comp etition Or tend . to c-reat-e a. mrir10'JOlv· ·or to unr e asonably r estrain trade, is an un·fair ·me thod of 6b~ etlti~n . 

9811 
-115-

(b) The g1v1ng , s elling , delivering or shi JJ ine; to anvone, 

products of the handbag industrv either .dire ctlv or indirectly, or 

by any other wavs or megns whatso ever, on an arrepr,ement or understanding 1-:nown as 11memorandum11 , or 11 consignme nt 11 or 11 on ap"9roval 11 for 

any l ength of time whatever, with the ri.<;ht or privilege to the customer or consignee of s e lling or offering 3ame for sale, and with the 

furthe r Jrivilege to the said customer or consigne e of r eturning Rll 

or any part of ~ch merchandise s0 shipped or delivered, or with the 

further u ri vi l ege of exchan.; ing ?11 or any pflrt of S;J.Ch merchandise, 

is An unfoir method of comoe tition. 

(c) The indirect or direct giving or ~ermitting to be give n or 

offering to g ive money or .anything of val u.e to agents, emuloyees, or 

representatives of customers or prospec~ive C•.lstomers, or to agents, 

em9loyees or r epr esentatives of competitors customers or ros~ective 

cQstomers, with or without the knowledge of their emolovers or principals, as an inducement to influence their em:9 loYers or principals 

to purchase or contract to p1.rrchase industry products from the maker of 

such gift or offer or to influence such em"9 loyers or principals to refrain from dealing or contrRcting to deal with compe titors, 'is an unfair 

method of competition. 

(~) The paying for retRilers newsp aper advertising , whethe r in 

the form of money or otherwise, constitutes a form of reb?t e and is 

therefore C~n unfair method of competition. 

(e) The acce ting of a r eturn of any merchflndise shippe d t o a 

:9urchaser and the giving to the purchRser credit therefor, or the ex.-. 

changing · of merchandise for the purchaser, wher ~ the merchandise has 

been shipped in accordance wi t h all the specifications of the order and 

within the specified time or where ·the ~urcha r has ordered merchandise in excess of his need with the intent to return part, or where 

the merchandise has be en in the possession, actual or constrQctive, of 

the purchaser for more than five days, is an unfair method. of competition • 

. (f) The malicious inducing or attempting to induce the breach 

of existing contracts between com:9etitors and their customers by any 

false or deceptive means whatsoever, or the int erf ering with or obstructing the performance of any such contractual duti e s or ·service s by any 

s .1.ch means, with the purpose and effect of unduly hamp ering , injuring, 

or embarrassing competitors in their businesses, is an unffl.ir method of 

compet ition. 

(g) The defamation of competitors by falselv imputing to them 

dishonorable conduct, inability to p erform contracts, questionable credit 

standing , or by other false representF~ tions, or false dispRrae;ement of 

the grade or quality of their goods with the tendency and capacity to 

mislead or deceive purchasers or· prospective purchas ers, is an unfair 

method of competition. · 

9811 
-116-

(h) Tne me-king of Rny false or exaggerat~ d statement by any 

oerson in his ac.ve tising or the TYJaking of false or unfair comparisons w:. th the products of other mam.1.:facturers, is an unfair method 

of covnvetitio n. 

XVI - The administrator is expressl r authori. zed to deputize the A-dvisory Co u.ncjJ. nvned herein anG / :J"!: i ts :t·ep:-.·,:;s entatives to do and perform s uch a .. ~; s as may be necess ary to c arry into e ffect the purpose 

and int e nt of t his code~ 

XVII- This t r ade associatio~ affirms thc:tt it imoose s no ineauitable 

r estrict:.vna on admission to membership therein, and is truly representative of the handbag indt:stry. 

This Code is not designed to promote monopolies, and shall not 

be availed cf for that uuruose. 

The provisions of this Code shall not be so int erpreted or . administered as to eliminate or oppress sma ll enterpr~ses, or to discriminate against them. 

Thi£ CoC.e and all the p~ovisions thereof are expressly made 

s.1bj e ct +.o +:he ri:?,ht of the Pres.L ,ler..c, in a ccordance with the provision of ('l_a.J.se 10 (b) of the 'Nat.i (Jr,_aJ. Industri al Recovery Act, from 

time t o time to cance 1 O:"' mo ::U:fy f11 Y order, approval, license, rule, 

or r egulati.1.m,, issued 1.1.11der itie I nf said. Act, and spe cifically to 

the right of the P:::-esident to canc8J, or mo d ify his app!'oval of this 

Code or any conditions i ii1p O s e d by him upon his a~yproval the reof. 

Su ~h of the p rovisions of this Code as are not required to be 

included thereirl by the National .Cndustr i al ~ec ov ry Act, may with the 

a-pproval of the Preside nt, be modified CT eJ.imtnated as change s in circumstances o:c~ eX9erience may 1ndicc:Jt:e . It is con.te!J1:9lated that from 

time to t ~.me supplementary p.rovi s lona to ·c;ii s Co ;le or additional codes 

will be submi t~ ed for the appro val o.f the Presj_o.~n t t o p r eve nt unfair 

compe titive practice s and to ef,f ectuate the other purposes a nd policies 

of. Titl e I of the National Industrial Recove ry Act consistent with the 

pro risions her eof. 

XVI I I - If <my emr,Jloye r of labor in the handbag in.d'..lstry is also an 

employer of l abor in a ny o'the r indu stry , ·cne provisions of this Code 

shall apply t o and aff e ct r~1y that part of his business which is incl u.de d in the handbag industry. 

XIX - VIOLATIONS 

Violations by any persons ~b ject to the publications of this Code 

of any provisions of this Code , or of any approved rule issued thereunder 

or of any agre8me nt e nt e r ed into by him with the Adv.isory Council to obs e r ve and conform t o this C0de and s aid rules, is an unfair method of 

competition, and the off ende r shaJ.l be subject to the penalties imposed 

by the National Industri a l Recovery Act. 

9811 
-117-

EXHIBIT A 

P AP.T 3 

AS REVISED AUGUST 18, 1903 ANTI GNLY CONTAINING CHANGED PORTIONS 

*** 

.ARTICLE I - DKB'INITIONS 

*** 

.ARTICLE II - STATUTORY LABOR PROVISIGNS 

*:I'* 

.ARTICLE I I I - CHILD LABOR 

*** 

ARTICLE IV - ~AGSS 

Gn and after the effective date t he rclinimum wage that shall be 

paid by any employer to any of his em'}loyeP s shall be a t the rate of: 

( l) 30¢ .• per hour when emyl oyed out side of Greater New York and 

immediate vicinity. 

(2) 35¢. per hour when employed within Greater New York and 

immediate vicinity. 

Provided, however, thB.t learners, for a period of not more than 

three months, shall not be paid less than 80% of the above ninimrun rates. 

A learner is hereby defined as a factory worker, who hc:ts never worked in 

the industry. 

The total numbers of learners in any factory shall at no time exceed 

15% of the total number of factory em:9loye es. 

AP.TICLE V - HOURS 

*** 

ARTICLE VI - LABELS 

*** 

ARTICLE VII - HA1IDBAG CODE AUTHORITY 

. . (a) The responsibility for the administration a nd enforcement of this 

Code shall be vested in a HandbA.g Code Authority. This Handbag Code 

Authority. shall . be selected by the Board of Governors of the Associat ed 

Handbag Industries of America, I~c., and shall be truly representative 

of the industry. 

9811 
-118-

(b) The Handbag Code Authority is hereby designated as a planning, 

fair --:nactice and controllint: age11cy fol~ the industry. This a gency may 

from -tirr:e to time 11 r esent to the a c"'.r.1inistrator of the industry recomrnenda tions based u-, oj1- co ncli tions in tl1e indus try, as they may develop 

from time to ti~e, whi ch v!ill tenc1 to effe ctuate the operation of the 

provisions of t:1e Code and the :·)OlJ..cy of the National Industrial Recovery Act, a n d in particular alo::1e: the following lines: 

(c) Recommendations as ta the requirement by the administrator 

of such o thor and f1-,_rther re:9 ort s from uo rsons engaged in the handbag 

industry of st& tistical in£'0.cme.U an '-'.r..d the ke ep ing of uniform accounts 

as may b e r equired to secure the pr ~er observa~ces of the Code and promote the p rope r bala.ncinc; of p:::'dX'.ction , distribution and consumption 

and the stabliiza tion of the inc.ustrJ am1 employment. 

(ct) Recommendations for the sottin~ up of a service bureau for 

engineering, accounting , crecli t or a.ny other ~1 urposes that may aid in 

the conditions of this emerGency 2nd t he requirements of this Code. 

(e) Recommendati ons for the ma.king of rules by the administrator 

as to practices by persons engaged. in the handbag ind1 1Stry as to methods 

and oondi t.ions of trading , the ns.m~ g and reporting of prices which may 

be appropria to to avoid di scrimirn'Cion, to promote the stabilization of 

the industry, to prevent an~ eliminate Ul1fair and destructive prices and 

practices. 

(f) com.~ ndations for r e6ulating the disposal of distress merchandise in tho follJwing way, bGcause that will secure the protection 

of thG ow.clGrs thereof a.nd at th.G samG time promote the sound and stable 

conditions in the inc1ustry. Dis tre ss merchandise may be disposed of in 

the. following manner, ancl durin[; t he follovv ing pe riods only: general 

fall com) e titive items after Christmas, ~e neral sprjng competitive 

i'tems afte r May lSth, and gene ral sunille r corrrpeti ti v.e i terns after July 

4th. Eve ry )erson is required to not.ii'y the Handbag Code Authority 

iwnediatGly after disposing of distress merch~ndise, jobs or underp rices merchandise du1·inb t ::e )er:'~o::l.1 as a'bovc s te. ted, giving the follow 

in,.:; information~ name of purchasel~, da·t<J of pu~~cnase, quantity sold, 

re r :;rice, price at which sold and r easo ns for selling. 

(g ) Recom:nendations for dealing· with any inequalities that may 

otherwis e arise that ~ay enr anger the stability of the industry and/or 

production and emp loyment. 

Such r ecommendations, when approved by the ac1ministra tor shall 

have the same fo rce and e ff e ct as any oth0r provisions of this Code. 

The Handbag Code Authority sha.ll ha.ve power to examine all books 

of accounts ancl. records of em1l.oyGrs to as.cortain whether they are 

observinG the ~1ro visio~1s of this code, and all employers shall submit 

their books and rGcords for ~Qch examination. 

The F4ndbag Code Authority shall have power to ap~oint a director, 

a staff of accountants and such othe:1; _emplqyees as may be required for 

the effGctive discharge of its fU11ctions. 

9811 
-119-

The expense of maintaining the handbag Code Aut hor ity shall be bo rne 

y the Associat ed Handbag Indust ri es of America , Inc., t he pC~ rti s to t his 

ode, and all other enployers in the i ndustry i n such :p roportions and 

ount s and in such mam:e r as ::1ay be cle t ermi ned by t he Handba.t; Code Au thority. 

ARTICLE VIII - COTIE REPORTS MT] FEES 

*** 

ARTICLE IX - COST RECORDS 

*** 

.ARTICLE X - SELLIUG BELCJW COST 

*** 

.ARTICLE XI - ·rERr S 

*** 

ARTICLE XII - G!~TRACT L.JG 

*** 

ARTICLE XIII - CONTROL OF PROTIUCTIGN 

*** 

ARTICLE XIV - REGISTP.AT IGN BUREAU 

ARTICLE XV - TRADE PRACTICES 

*** 

ARTICLE XVI - ADMINISTRATIGN 

*** 

ARTICLE XVII - STATUTCRY PROVISICNS 

*** 

ARTICLE XVIII - APPLICATION OF COTIE 

*** 

ARTICLE XIX - VIOLATIONS 

*** 

811 
-12().... 

l!;XHI:B I 11 .A 

PART 4 

PROPOSE:J CODE 

OF 

F.A.I.R COi :PET I ::i:I OlJ 

.A.Dr~s ' t-LA::.f_,B_\G I:i.illUSTRI 

ArtT IC:sE I 

Pur:ooses 

DrQ,ft of 

novembe r 6, 1933 

To e ffe ctu;>.te the policies of Title I of the lTc.t i onnl Industrial 

Recove r y Act , t i'lc i'ol lo·_:,i::.g _ ro-:isi_CJilS c..re sub:1ittec1 c:.s a Code of Fair 

Coml')eti tion for tl1e LRC:.i es 1 EcnJ1o.:; I::duG try , 8.nd up on approva l by the 

President sho.ll be the st2.":dc.TG.. o:: f:1ir com::_.Jeti tion for this industry 

and shall be bi~di 1g U})0:1 ever:r r:JGTI"t ·3r the r e of. 

1. 

l ndies 1 

AJ.TI0LE II 

Definitions 

The t ern 11 I ndustrv11 t:'3 u s ed hel~e in includes the manufr.cture of J 

ndbrgs , )r :~e t 'J oolcs <'.i,_l_ -~urse:s o 

2. The terr.1 1Te r;p)l oye e 11 as use d ~~ er :: in d.nclud.es DnY person engaged 

in any phn.s e of the ind.ustr~r , i n mw C[)n nc:lty, e~e ing comp enso..tion 

for h is services, irres:pecti ve of the n-:1ture or meth od. of ')[1 yment of 

such omuens ~~.t ') . 

3. Tte t ern 11 ern}_oye r 11 ~. s us e(:;. here i :1 includes c:.n:rone for wh ose 

benefit or -~hose business such ~n cu~ l_oy ce is eng:-:::e d .• 

4 . The terr.1 11 :-1e' 1be r of the nc1u ,t ~; 11 _ includes D.nyone ent;r.ged ir~ 

t he industr y , either 0.s o.n e :r::- l oyer or ou his 0":7n behr·.lf. 

5. The t e r M 11 Presi den t 11 , 11 Act 11 , nnd 11 Adr.1inistrr.tor 11 r.ts used. 

herein sh2.ll t~erm r es-)e ctively the Pr :. s i .f.ent o-:: t~1e Jn ited Stntes, 

the rJc:.tio"lal I nrlustrinl Rec ove rJr _L;.ct, c.n-1 t :1e .Adr,iinis tr.• tor of Title 

I of sn.i d Act . 

9811 
-121-

ARTICLE III 

Hours 

1 . Exce·:Jt a s he reinaf t e:t p l'Ovided , n o en~J oyee shull be ·)e r r.1 i t ted 

to ,_-rork in excess of · fo1·ty ( 40) hours in nny one ne el::, nor i n e xcess 

of eight (8) hours in any t ·:enty-fou_· ( 24 ) h our Je r iod . 

2 . JO pe rson 'l~J lo ed in sh irni ng , cl e rica l or o:L f ice '7 0rl , un l e ss 

he is em lo red in o. mano.ge r i c.l 01~ executive ca·Jo.ci r 0n<l e l .. rns not le ss 

thrn thi~ty fi ve ( $35. 00) :;_J er :reek, shall be p~rr1 i t .t e cl t o 1-ork in e x cess 

of forty (40) hours in o.ny one week nor in e: cess of eight ( B) hours in 

any t .renty- four (24 ) h our :•;:> eriod. 

3. The provisi ons of thi s Article sha ll not £'. n l y to outside 

salesmen. 

4 . Su'oject to r evie·; by thr:; il.d.Llinistrr.tor , the CocJ.e Authority 

shf1.ll designate the hour be:Lore nh ic~1 nork sha ll no t b.:;:;in w1d t he h our 

after which n ork shall not continue. In the discre ti on o:L t he Code Authority such op enin.:; r:'lci closing h ou rs ne e d. no t b e uniforn t h roughout the 

country but may be vuried to meet v or-J ine; needs C'i1d cond itions. 

5. ITo manufa cturinG o· er ti ns shall tf'.l::e }JlP.ce on <:>.ny Sm.turdny 

or nny Sunday. 

6. No member of the ind.ustry shc.ll e nt_;o .. ';c any er.nloyee for c:my time 

which when totnleJ. ni th thn.t o.lrendy }Jerformecl with other me~nber or members of.. tho indust!"'J exceeds t h e r.mximw:1 lJ ermi ttcd h e rein • 

.Ar'1TICL:E IV 

T1ages 

1. Excep t r;.s herei:1c..fter ·Jrovi cled no eo'Jloyee sh.~ 11 be ;x·id a t 

less thon the r <:•.te of thi rt r cents ( 30f, ) p er h our '7hen en_) loy~d ni thin 

Greo.ter lTen York .:-'nd the im: 1edif'.t e vicinity the r e of , nor l ess than 

tuenty-fi ve cents ( 25¢) ]Jer hour nhen er.n l o:red outside Gr e cL ter Nen Yorl:: 

D.nd. t h e immedi a te vicinity t h ereof. 

2 . Persons ler.rninG a n occupa tion sho.ll be :.Jo.id. 11 0t less thc.n 

eic;hty per cent ( BO%) of the minL mm r:n ... ;e '.7hich lJre vr- ils in such occu..:. 

pat ion, a nd. the number of such \:'Orl:ers sh all no t e xc ee d. f ive p er cent 

(5%) o!' the number of emp loyees of ;:,_ny one em·ol oye r <.nd no :person sho .ll 

be enrolo:-{ ed n.s n lec..rner. for a ·oeriocl in ce~ s of' three (3) months ir- ~ - . r espective of nhether they n.re en~) lo . ..red. by one or more enp loye rs. 

3. This Article est ablishes C:'. mininum r o.te of :;J <:Y 1-hich sho.ll ap:yly 

irres~J ective of nhether [1n enployee is compensr.ted. ~ [1, n iece r c.te, ti:Je 

r c:,te or other b c.sis. 

4. 'rhe v;rag e · r at e s for occupntions othe r tha n t h os e rece1v1nt; the 

m1n1mwn nc..g;e here i n prescrioed. sh0.ll n.t least r:1a intc i n the diffe r ence 

in earning for those .. occupo..t ions fo r r:. full- tine ryeel{ e :d s tin~ on 

9811 
-122-

October 1, 1933 p rovide d , honever , th< t these r().t es sho.ll be subject to 

r e c onsider<:' tion fo:..~ o.djust ne nt by th9 Co cie .Authority o.nd by the Administl'['tor. 

5, Sub tiect to revi e':".r b~r tl'.e Code ·Authority n.nd oy the Administrator=' ~10 eq -' 1 ':'ye:: shall r eJ.u ce t.~1A "Tee :l y coin::·enso..ti ~1 for em loy

ment noTI in cxcoss of the min7'1'Ju.m To ~;u s c->rtablished here in, :rwtni thstonding t hJ.t J~he hours \!O:rked in sach ei O,TJJo~t may hereby be reduced. 

A..:.tT I CI,E V 

Gei.1erc:1 Lc:-b:or Provisions 

1. .:.w ) erson unde r sixteel1 (16) yeo.rs of o.ge s ho.11 be em·1loyed in 

the industr y . 

2. Erm;:> l oyees shall hDve t he j_,c;h t -;;o org.:1nize r-11d bc:.rggin collective l y , t hront;h re Ji~e c:r- t o. ti ve s of their 01111 ciwo sinr; ~ o.ncl shall be free 

fro r:~ the i n t e rf3:· e:1ce 7 :c~ e s t rn.L1 t ~ o:- coe1·c i on o:f' eopl 03; e rs of l c.bor , or 

t heir D.('G11'cs , i n the u.esignu. :. ic11 of S1 .l.Ch :te:ore s8nk·.tive s or in self-org2niz.:.ti011 or ~n other e;onc :~te cl. r'Cti v i t :.e s for the :1U~ ose of collective b nr s.-:l.ining or othe r mu t"J.nl ni d or )J.~ ot c ti on. 

3. ~T o "~ loy ee and no or.e S3elri nc em:_1 loymen t shn.ll be re quired o.s 

a c ondi ti on of e:rT0l oy,Je:r..t to j oi n n.ny co ~:'an~.,. union or to refrain from 

j oining , organi zing o; or assisti n;:; r- bor organizatiOi1 of his orm choosing . 

4. Emp loyers sha ll c orrnl y v.ri t h the maximum hours of l abor, minhru.m 

r ate s of )80' , C:.l1d other condition s of em·)loynent 8.1J.•Jrovec1 or p rescribed 

by the Presi den t. 

5. No e:.1:9l oyer shall r e el "ssify em) loyees or duties or occupations 

l'Jerfcrme d for ~1 e ~smr~o se of d.e:Ee r..tinc t he ·Jrovisions of the Act or of 

the Code . 

6. Every em) loye r sh2.ll ·.)r ovide for the ~.fety r'nd henl th of his 

em~o oyees . St.2no.o.rcls for fe ~r ['YlO. heal th sh nll be subr:li tted by the 

Code Autho:c i ty to t he }.dminis trn.tor Pi tl-:il1 siz ( 6) J.!'lO >l ths nfter the effective date of this Code. 

7. No j_J ro rini on in t h i s Cod.e shal l su oersede nnzr lcm r.ri thin any 

State whtch T1 ;ose s more striLGen t reqt.1 ire ;e ~1 ts on errrJloye r s r.s to a g e 

of em:9 loy3e s, nar;e s, hour s o-+: r:ror k , or ['S to s oi' ety , health, or sani t f:l.ry 

r ogulati o?'ls,, or ~nsOJ.rru:c , or fire :)rotection, or t:;enero..l n or king conditi ons , t h<m CJre irJ Os ed by t his Code. 

8. Not~il ~ here i n c ontcdnecl shall ~)p :r to en·?loyee s ':here terms 

of el"'2.Jl oymcnt < re estah lished. by l nu or C~gr ee:Je ts, 1mder3tn:1ding s, and 

pro.c tices nou i n force, Tihere ~.1e rro-t;;e ['!ld hour lJrovi sions so es tnbli shed 

are iuore favor0.ble to or,nl oyee s h.:u~ tho se set r'o rth i n this Code. 

9 . All em) l oye rs shall :)ost c on )l ete c op ies of Articles III, IV, 

and V of this Code in cons=1 icuous ulaces o..ccessible to employees. 

9811 
-123-

10. No provision of this Code shDll modify estD.hlished 1)ractices 

or privileges as to vaca tion period.!: , le.:wes of absences , or tenr,;orary 

absences fron ITOrk heretofore grCJ.:ated. to office em~Jlo;y-ees. 

11. No r1eL1ber of the i ndustr:r shall g ive out \70 rk to be performed 

in any home or dTiellinc p lace. 

12. .An:;_~ -9c rson 11ho sho.ll D.t nny time mD.nufacture any c..rticle or 

articles subject to the :;)revisions of this Code sh<:ll be bound by e.ll 

the p rovisions of this Cocle rs to <'.11 em:')l oyees e!1ga.r;ed , i n r:hole or in 

part, in such mc:muf<'.c t ure. In c c::.se ar.~ en: loyee shall be engaged partly 

in such manufacture and partly in the ma~ufQctur e of e oods of another 

chara cter, this Code shall G.)_)ly to such p ortion of su ch ennlo~ree s time 

PS is f:I-P1!lied to the manuf£..cture of :--Lrticl es su1J ject to the revisions 

of this Code. 

13. no member of the indus tr~r shall Give out r:ork on g contra ct 

basis unless such nork is given out ·:i th c>. • :ri tte~1 ac;reene;,1 t that the 

contra ctor and. n.ll othe r l)<'rti e s to such contrn.ct sh.r;.J.l cornly nith r.ll 

the pertinent revisions of this Cod.e. Tl e Code Authority shall dr:-,.lf 

Up D. U:'liform c?.(jreenent llhiCll shnJ.J. be USeCL nhereever r.::.d Whenever V!Orl: 

is g i ven out on ['. contrnct br-sis. 

A:.'1TICLE VI 

Ad.ni ni s t r .::-. t ion 

1. A Code Authority is here0 r constituted to coone rc.te ~7 i th the 

Ad.r:1inistrntor in the ad:1inistr0.tion of t:1is co.:;.e. 

2. The Code Authority sho.ll co:1sist of 

ected in the manner hereine.ft.er s e t f orth: 

nenbers to be sel- -----

(a) · ::embers shell be e.: ~) oin t ed by the Board. of Governors for the Associated Hc.ndbe.c; Indus ~rie s of America , Inc. 

(b) ___ members sha ll -o e :) )o intecl by the I.:idwes tern 

Hnndbae; Association. 

(c) ___ neTJbers shoJl 'be Fl. )~)ointed 'by the Po Jular Priced 

Handbag Associ o. tio . 

(d) One (1) menber shnll oe t:';;...,-ooin ted by the Aclni:'listr.:--t or on 

the nomination of the Lab or Advisory Boa::..~d of t he !btionn.l Recovery Administration. 

(e) One (1) meTJber shall be <'.p ) ointecl by the Ad!Jinistrr- tor on 

the nonination of the Cons11:1ers' Advisory :JoD.:cd of t he Hc:...tioi1al Recovery 

Admini s trc.tion. 

(f) One meuber sh.?.ll be ru 10inted .. b~'" the Ad..T'linistro.tor to rep resent the Ad1:1inistr0.tor. 

9811 
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3. Er·ch t ncle or industrinl r.: socin.tion directly· or indirectly 

p c? rticipC".t in"; L1 t he sel oction or r.ctivi t ies of the Code Authori tJ 

sh 11 ( 1) h!IDOSe no inequi t u"Jl e r e :-- · .:.. c t i 011s on r..1er.1be j hi ~J , o.nG. ( 2) 

su"uni t to t:1e AU!.'i'1i n ~1 n tor ,;nw "'~"'~ J.. O s cf its 2.rticJ. es of associ-

<:' t i rm , J•- 1D"S~ 0r;t1L1.ti0ns~ r-; ~-- .~~::' rn e: .L19 nts ·:7:1en r~~ de ~1e :;. eta, 

togc t n0 r '7 ... t h s .L.:h othr.;r _;_ n-.: rj·.:·"'lr.t t.n t s )co JaenJe r shi ) , orgt.'.Y'.i A. tio~ , 

nnd <'Ct.i v.L ti c s ns t he AC:.n i nist rt"t or 1r r de em necess to effectu.~ · 

o.t e t he -Jur- ;o -;e~ o ... · t:1e .Act. 

4 . · In orde r th<:' t t he Coo.e Au thori t::- s~1 ll <:' t <:'11 tir:Jes be t:cu.ly · ".,' 

re:prese vc o:L' t l e inrlust17 Ti d. in othe r re s:Jc cts c o::11Jl zr ·- ~ th the 

·Jr ovi3i on'> of t :1e Act, ~e ct ~illis ::r~Jvo r l'1Cl3' yc vio e such heo..rings' a s' ' 

he no.y de en ~J ro:_ , £,:1U. TlD.y re--:_ui:.:e 2.!1 ;· J""'~ rO Jrit'.te mocl_ifi c ntio:n in 

I r 

the me thou ol s e lection of t he Cole l~~a ri~ . 

5. Noth i ng co:·l t <.:'..i nec1 ii1 ~:. s Co ,:l:.e shell constitute the ne~ bers 

of t l e Corle ~ut.ho ri ty )crtne:.·s I'c:.· rn" · -)·n·-Jose . nor !: ..., 11 i".l1f neiJbe r 

of the a~l.e Aut ~1... r i t y ue -.~ 9 i ... :1 7 Pl [•. ne :r to nn.:ro,1e f or c:-.ny [I.Ct 

or ru:.y ether r.w 1oer , o::..'f icer ~ agfnt O J? c:.1 lo:re e of t ho Cocl.e Authori ~r o :ior shall :-.nJ rilenbe r of tht- Co de Au Ju h ori ~- be liable to r'l1yone 

for r.rry a c t i o:-;. or or:1issi o:1 t o ['l_ ~t t; ~ t :"e Code, e:::cep t fo11 his t:illful oisfe E~ ance or non-fe ~. .: ce . 

6. The Code Authori t:r sh ... lJ. hrv e the follouing ~one rs and duties, 

to fu.o ex t ent perr1i tted by t he Ac t , r.:1•.l suc ject to the ric;ht of the 

Admi tr [~ tor , l :c ev ie':'.' , to cLisr-.)'1l'07 e Ol1 nocLify r·ny CI.Ction taken by 

the Code Authority . 

(e.) To rrd()r)t o. consti t·-1tion , ·oy-la11s c:1.11d rules cmd regul ations f'Jl1 its i)roccclure r:ad fo r t he :-..duinis trr ti on r 11d enforcenent • 

of t h is Code , onc1 to sub:.1i t t he 8['11C t o t : .e Ad:.1ini s tra tor for his ap-

-:? rov<:'.l to.s;c t j_1c r 1 i t h true CO) i es o:"' , .... z.r r.i len0J:J'3n.ts or cddi tions TI}len 

ma de t he r e to , n L1ut e s or ne e tin_:; ·:; ~r :2 l1:3 lC_, c1(L such other informo.-

tio':l 2.3 t o its " c.tivi ties [' S t he c-;.: i. '. s·~ £'. tor nay deer.: necessary to 

eff e ctua t e e _.mr _)Os es of t :1e _,:,c t o 

(b) To obta in t}Irou[;h a confiden tinl Cl 1c · fj,"O!'J the r1embers 

of t he indus b y re-~?ort s b :- se\l Oil nm-i 'Jds of t·•o, or :fo·ur u e eY.:s , or multi-

-_Jles t he r e of, fo:t use of t h e Co :le ... i1:tt :10ri t 7 2.1:.d the Aclu inistrntor in t he 

inistr o:t'l n11Cl. enforce ne :t o::' cl~ is Code , c.no. ~or the inforrnc..t i o11 of 

the P11esi c'!.ent , E.l.nd t o t;ive n~ e t o :1eJ·10er'· of the :indust;.y in imp rovin0 nethoC.s , nnci othenrise . 

(c) To r e ceive co;r "'l .,Llt s of violati o:c:.s of thir; Code , :.10J:e 

investj R;ation s t :1e r e of, •Jj,1ovi cle he~ ril1 ~:> the reon r>~1c'.. c.c.jus t such comp l a i nts, "'.;1C'. ,J r i :lc; to t he r- t te;ltio:'l of the pr0per <.'..1.'..thori t i es for p ros e cu tion recon' ,enclo.tions c:.l:.ci i l:.f or•.v· tion rel(1.ti-re to unndjusted violal a ti ons. 

( d) To use such trade c: ssoc c-.tio 1s ancl . other 8£encies as it 

deems p l'Ouc r f or the c r·.r:r:·ing O'tl t ~ ~ of its r.ctivi ties p rovided for 

he r e i n nr.d to pa}r such trade ...,s...,oci, ..... ti')llS r~1d encies the cost thereof, 

9811 
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p rovided that nothing herein shnll relieve the Code Authority of its 

duties or reSlJOnsibili ties Ullde:;.~ this Code and tho.t such trr.de. ass ociation and_ ,...,_gencie s shall n.t n.ll tir.1es be subject to and comply r,i th 

the ·Jrovi sions :hereof. 

(e) To coordinc:.te t he ad.ministr 2.tio:;.1 of this Code 1i th such 

other codes, if o_ny, as mc-.y be .relc.t ed to this indus try, or o.ny subdivisions t:1ereof , a nd to delegc.te to any other n.drlinistr[1.tive authority, with the .s~~ lJ rov l of the Adn inistrr tor, such :oowers c-.s ,-,ill 

~ronote joint £"..:Cld har:.~onious r.ction u:oon matters of co:-,1ncn interest. 

(f) To secure o.n equitable a nd ?roportion2.te paynent of 

the expenses of ~1 e intcinin ~ the Code Authority D.Jld its o.ctivi ties 

fror.1 those me11bers of the ind:LlS tr3r acce·')ti n:; the benefits of the l'.ctivi ties of the Code Authority or other1ri se asse:1 tine to this Coci.e. 

(g) To p rovide for an ~IRA Code insic;nin for the exclusive 

use of the r:1 embers of the industry and to establish o.:s:roropriate T.Jachinery for the issua nce of such insiGnia. All o.rticle s subject to the 

provisions of this Code shall be<'r su ch an insigi.li a and eo..ch member of 

the industry shall be entitled to the use of such insigni a p rovided tha t 

they agree to and com1)ly with the p rovi sio·1s of this Code. The Code 

Authority shn.ll ha ve the sole ri g~1 t to distirbute P..llcl sell such l"!RA 

Code insignia in t his industry . 

(h) To esto.bl ish or design2.te o.n agency on lanning e.ncl fo.ir 

pro.ctice r:hich shall coopera te nith the Code Authority in developing 

fair trade p ractices rmd industrial :?19llning , including the regulnrization and establlization of emyloYTient for the industry. 

( i) To initia te, consider, a:1'd make r e comraendc-.tions for 

the modifica tion or amendment ·of this Code. 

( j) To crea te as o.n c-.genc;:r of the Code Authority a JOIIJT 

I NDUSTRIAL RELA'l1IOliS BOARD, consistinc of n.n equal number of re})resen-

'tatives of en?Jloyers nnd errmloyees, [l.nd an imp C~ rti [l l chairr.w.n elected 

by the meL11bers of the Board, to inve·sti e:;at e e.ll r.1a tters of t he Code 

reln ting to h ours, wc.ges, and _:;enera l l ['.b or )revisions, and to report 

~heir finding s c.nd recon.1endati ons t·o t he Code Authori r. The desi gnat ed em?Jloyee l~e ::_J resento tives sha ll b.e truly re:•_)resentntive of the 

e r.nloy ees in this industry and shall be s elected by such en}Jloyee s. 

(k) To recommend p r ovisions for a lmiform cost sy stem for 

e a ch divisi on of the industry r.hich up on a) roval by the Adoinistrator 

a!ld after such notice of her.ring as he sha ll p rescribe shall be cone a 

part of this Code. Any menber of the industry shell have the p rivileg e 

of continuing any cost system, or of instituting ny cost system suitE'.ble ond ado:Pted to his po.rt icula r needs, rovided thD.t the selling 

pri ce c.rrived at by the use of ailY such sy stem shall not be less than the 

cost of that )c rticular article which rrould be arrived at by the use of 

the uniform cost system recomnended by the Code Authority C1.nd ap)roved by 

the Administra tor. .Any such s;ysten o..:rnroved by the Adr:1inistrr'.tor shall 

involve"only such elements of cost a s may be rea sonably necessary to 

assist in the administrAti on and enforcenent of this Code. 

9811 
-l2G-

(l) To unde rtake , in c onj'Llcti r.n 1.rith the Code Authorities 

of r ela.t ed i nd'J.s t ri es , a n i nves tic;< .t i on of s tyle p iracy and. to recommend t o the Adrainis trc.t or , ni t hil'l a reas on n.ole erioci of time , alJ·Jrori ~t e meci:.s f or t he regulation cn .c1 s ont rol of styl e ir2 , v1hich 

r e c o:mmen,t['.ti r ns ~ on tll8 .~)~ £1:'.. of 1e Ad ini :-.; tr(l t or and. after such 

n oti ce an(_ h co;.<. ncss f.'.S he may p r e L> cri b e, shall b e coue effective provis i ons of thi s Code . 

. : 

(m) To P1ake reconmend.o.t i :ms to the Administr;'.tor r egarding 

tpe e stablishment in this i n du··tr:,. oF a systen of uner:r) l oyment insura nce , ':7hich recommendati ons, ~;0:.1 t he :;_J ovc.l of the Adminis trc:.tor 

s ha ll become effective p rovisi uns of this Code . 

7. In additi on to the iDf ti l r e quired to be submitted to tre 

Code Auth ority as set forth i n t h i s Articl e , theJ:-6 shall be furnished to 

government ag encies such sk·tis tica l in::'o::-.r.a tion a s tl~ e J\drJinistra tor 

may deem sc.: y for t he ~Jur os s :i.'e ci t e l i n Se ction 3 (n) of the 

Nati or.dl I nclu stri.:1l Re c overy Act. 

Oo Jm a:_npeal from e.ny cS.c tio;,_ r t he Code Au thority affecting the 

rights of a:w err_) lo r or oy e ir:. t h e i nd11.st ry ::1ay be taken to the 

Administra t o-ro 

ART I CLS VI! 

TraJ e ctice Ru les 

1. For a ll ·our-r) oses ' of t r.i ·s Code the acts describe d in this Article 

shall constitute unfa ir p r a ctices • .Any r:1e r1ber\of the industry ViThO shall, 

directly or inclire ctly, throuch any officer, ent;:Jloyee , agent or re resentat i ve , lm orring l y us e , em2Jloy, or ~J.e rmi t to 'oe emlJlqyed, and of such unf a ir p r a ctices shall be gui:tty of a vi o l c::.tion to the Code. 

2 . No memb e r of the i ndus tr ,. · sr .. a ll u s e c.dvertisii.1g , 17he ther p rinted, 

r a dio: di s·Jlay or of an r othe!' nn:b.J.re , or o ther re)re s entr-.tion which is 

inEt.ccurate in ['ny material p articul:•:r or b any rray misre Jr sent any commodity , includin:; its u s e, tr['.de- ma rk, c; 0. cl' , quality, quantity , origin, 

size , materi a l c.ont en t or p rep r r g ti o:'. , or crecli t terms , values, policies, 

service s , or t he nat ure or r'orm of the -~ es s conclucted. 

3 . No membe r of t he in<lnstr y sha ll us e advertising or selling 

meth ods or credi t t e rms ViThi ch te:1d t o de cei ve or misl ead the custome r 

or p r ospe c t ive custooers . 

4 . .fo momb "J r of t he inC.u.str y s hcS.ll withhold from or insert in any 

quoto.t ion or i nv oi ce &1y sta tement that mc:-.Les it inaccurate in any materi a l p art icul a r .. 

51) No memb e r of the industry <:~1l b rand or mDrk or pack any 

commodi ty i n ,;.nJ rr.al1ner nhic:1 t.end:3 ~ de ceive .or mi slead purchasers 

with es Je t to the bra nd. , g r 1:1de_, lity~ quanti t 3r, ori8;in, size, 

ma t e rial c ontent or ::> repa o. ti on of such c ommodity. 

9811 
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6 . No memb e r o f t he i 11dustry sh2.ll use a.rlve rtisinG o r othe r r elJr es en t a tion v:hich r e f e rs i ne ccu r a ~' i n a ny rna ri <~ l -,, f_;.r t icul e. r to a ny 

corrrJe ti tors or t he i r commodi t i e s , -Jri ce s , v:.::.l u e s , cred it t e r ms , ) Ol ici e s 

or s e r v ices. 

7. No memb e r of t he i ndustry sha l l Jubl sh or ze unj u stif i ed. or unwa rr8n t e d t h r e n. t s of l ega l _Jroceed i ng s whi ch t end to 

har a ss or ha ve t he effect of m r a ssinc , co i tors or i nti mi da ting 

t he ir cu stome rs. 

8 . No memb e r o f t he i ndustry s ha ll s e cre tly o f f e r to nBke a ny 

'Jayment or a llo...-:2.nc e of a -.. , r ef1.md , corrunission, credit, unear ned 

.discount or excess 2llowf:tnce , wr~e i.l r in t hq fo r m o f mo:'ley or o t he r-

"-;r is e , f or t he ur_;_Jo e of i nfluencing _ a se.l e , n or shD.ll 2. memb e r 

s e cre tly extend to a ny cust orJe r y Je ci l s e rvice or ) rivile[:;e not 

extende d to 11 custome rs of t h e sa me cln.ss. 

9 . No memb e r of t he industry 1:;. ll s hi p com·'loditi e s on consignmen t or memora ndum. 

10. No memb e r of t he industr y sr.a.ll g ive , ~~ ':l i t t o be g iven, or 

o ff e r to g i ve , a ny t h ing o f va l u e !Lor t he :; u r::)q.s c of i nf·l uencinf; or r ev.-a rdinG t he a ction of · errriJ loye e or e.gen t o f s..i1o t he r i n r e l n tion to 

t he busine ss of t he emp loy e r o f such em~J lo e or the p rinci:'Ja1 or such 

age ~t v.ri t hout t he k nowl edce o f such e~o lo ye r or ·· 'i ci Jo. l. 

11. No memb e r of the i ndustry s ha ll a t t em) t to induce t he b r ea ch 

o f a n exist i ni; contra ct bet\7e en a com}Jetitor and ill s em.Jloye e or 

cu stome r or s ource of su ; nor s h...a ll EJ.ny (!,emb e r of t he industr-y 

inte r fe re with or ob stru ct t he p e rformance of such contr a ctual duties 

or s e rvice s. 

12. The maxi mum crecU t t e rms of sa le for t h is inc.ust ry s h£.11 be 

3/10 E.O. M.; anticipati on to b e a llm-;red a t t he r a t e r'lf six pe r cent 

( 6is) :pe r a nnum. 

13. No memb e r of t he i ndu stry sha ll pay dire ctly or i ndire ctly 

any part of t he a dve rtising exr; ense s of a njr urc r, p ros: e ctive 

:9urchas e r or t he ir agents. 

14. No memb e r of the industry s h2.ll a cc e:Jt t he r e t·nrn uf n.ny me rchandis e shi ::_;) ed to a p urcha s e r, nor a llow credit t he r efore , nor exchange 

me rchandise v;ho re t he me rchandise ha s be en s hL m e d in a ccorda nce V!i th 

sp ecifica tions and within t he sp e cified time d she ro t he me rchandise 

has b een in t lw ~o ss ssio , a ctual, or cons trQctive or t he rc ha se r 

f or more t han f ive days. 

... 15. No memb e r of t he industry s hall s e ll rchandisc b e l cw h is 

own ind ividun l cost u s com] uted by the unif orm cost sy stem p rovided in 

Articl e VI, Se ction 6 (k ) of t h is Code , e xceD t t ha t a memb e r o f t he 

indu stry may mee t t he ric e coi119e ti tion o f ot ht:J r memb e r of t he i ndu str.{ 

VThose cost, a s co ut d b y sai d unif o rm co st sy stem , mn.;r b e lov1e r and 

excep t t ha t this })revision shall not a:.-Y.Jl Y t o t he sal e of d istressec. 

me rchandise • .;... 

9811 
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16. No member of the industry s.ha.ll dis·Jose of distressed merchandise o. t Jricos belov.r the cost of 11is lowest cost corn::_; etitor or, if 

such memb e r ~ny himself be the loY.r~st cost mufacturer, belo~Tl his ovm 

individual cost, unl e ss such me~:-~b -r:- n0 tify the Co de Aut hority immediately 

a ft e r dis-')OS'J.1 of such distress ed r~ i1S.nd is r; , a lonb vri t h such inforrnD.-

tio!'l as t h8 Code Autho:cit~· -9.:t1d the Ad,.! ~is ::c : tor rw.y Tlres cribe . General 

f a ll co rro;· i tivr; i t erns r -J.y :1ot b e s c-lJ .J.S dif,tre s s ecl eJ~c oo.n ( ise cluring 

the De n .od. o: a nd g~ne:cal -'- ---- ------------- ~"l rin.:; r-o llr_,e ~ i ti ve i t cYJs sr~ l::.. nG t be s olC: ::J.s dis t l:essed mel~che:. ndise 

during the ~')e:o..~io cl . of • 

tiodifi C::'. tion 

1. This Co de anc~ all t he ·:; ov ions t he reof a r e expressly made 

subj e ct to t he r .' .. ght of t he re::>id-;nt, i ·1 2. ccorde.nce Hith the )revisions 

of subse ction (b) of Se ction 10 of t lD Nc:.tional L1dustri8.l Recovery 

Act, from time to time to ca11 c el l~ moc1 ify uny order, a)~"'roval, license, 

rule, or :rec;ula tion issued. unde r Title I of s B.id Act and ~Je ci fico.lly, 

but v1i thout limi t &tion, to riE;ht o f t he ?resident to cancel or moclif~· 

his -9.::_J)rov21 of this Code or a ny conditions imJosed by him un on his 

app rova l the r eof. 

2. This Cod'3, exc e')t a s to ytovlslons required by the Act, may 

be modifi ed on the br.sis of e~)erienc ~ or cD se s in circumsta nces, such 

modifice.tion to be ba s ed 1.1~ n ::: ~: <· tion :to the Administrator and such 

notice a nd h e£:·.ring a s he shall S~)ecif~' , and to become effective on 

ap) roval by t he ?resident. 

AnTICL3 IX 

Mono) olies, Etc. 

No ~J rovision of this Code sJ:L.qll be so alTJlie<l as to 'Jermi t mono- - . 

poli e s or mono1Jo listic lJ ractices, or to e lLni nate, :J~ ress, or dis- · 

criminD. t e ag::1 inst small enternrises • ... 

AB.TICLE X 

Price L1crea ses 

Whereas the )Olicy of the Act to increa ~e real l'urchasing ~ovrer 

will b e m&de im.:_Jossible of consumme.tion lif ~rices of goods and services 

increase as r8.)idly a s wa(;es, it is r e coGnized that ·'Jrice increases 

should be d. elf;wed. But when ma de sucl1 i nc r ea ses sho~1ld, so f:1r as 

lJossi ble, b e limited to a ctu..:t.l increase s in · the seller Is costs. 

ARTICLE XI 

Effective Date 

This Code s hall b e come effective on the second Monday after its 

approva l by the President. 
-129-

EXHIBIT A 

PART 5 

AS REVIS~ AUGUST 18; 1933 AND ONLY CONTAI NING CHANGED PORTIONS 

PROPOSED CODE 

As revised, 

November 24, 1933. 

*** 

of 

FAIR COMPETITION 

for the 

LADIES t HANDBAG INDUSTRY 

Aoul.icant 

ASSOCIATED HAN-::JBA-i I NDUST:rti ?S OF AMERICA, INC. 

303 FiTth Avenue 

New York, N. Y. 

A:rtTICLE I 

Purnoses 

ARTICLE II 

Definitions 

1. 

ladies', 

factured 

The term "Industryil as 

misses' and children's 

of any material of any 

used rein includes the manufacture of 

handhags, noc~etbo0ks and p~rses, manufkind or nature. , 

3·. *** 

4. The term 11 member of the industry" includes anyone engaged in the 

industry, either as an emuloyer or on his own behalf and e ither as manufacturer, manufacturing jobber or contractor. 

ARTICLE III 

Hours 

*** 

9811 
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ARTICLE IV 

Wage s. 

1 . Except as her eir-af te r u r ovi d.ec. no employee shall be uaid - at less 

than the r ate of hi1·ty-f:-v ~ conts (~ ) t=~ r hour when employed within 

Grea er l w Y'Jr!r a: d i: l; e i mrr.e ·3.: ate viGi·:::.. t v the r eof , :nor l e ss than thirty 

cen s ( 3t)( ) -rer- hour v.-hen -.-mp-Lo ye d out s1de Greater New York and the immediate vicinity thereof . 

2 . I'e:rsal1s lea-r ri n~ an occuoat i on shall be naid not less than ei~hty 

ner cent (8\)01.) c,f i~he n.ini mum c.ragr3 .~h ~bh p t·evi c:J.s in '~Gh occupation, and 

the nunbe:::- o~ s' .... ch wo·=·tcr~::-s ::;l:.P,ll n(;t exceed fi ftPe n ue r ce•1t (15%) of the 

num'ber of ertll)lO/ P. ::Js of a;.w one c:n·::;l oyer u.nd no peJ'son h.a~l b e emuloyed as 

a lee:tner for a D~r:i. od i.n BY-C2SS uf L;h 2-:-' (3) months itre.pnecti Ve Of whether 

· · · · hey are er.mloyed by one or mer "' em::Jlo;ya r s . . ' 

3. *** 

4 . *** 

5 . The Cod e Authority s hall be emnowered to establish such basic rat 

as they find. rlc ce s c:; ary ::1nd unon th - a-c-or oval of the Administrator and the 

rr sid n;; F·.r·U. ~fte r SllCh not:!.ce "a"'1d t~ E< rin s as he may nrescribe, shall 

become effective urovisions of this Co de. 

AR'I·:L CLE V 

General Labor Provisions 

1. *** 

•• 

2 . *** ,: 

3 . **"' 

4 . **"' 

5 . *** 

6. *** 

74 "'** 

8 . *** 

9 . *** 

10. *** 

11 . No membe r of the industry st all g i ve out wor~ to be uerformed in 

any home or dwelling ulace. This revision shall not apoly to hand beadi 

hand c r ochetin5 or hand embroiQor y. 

9811 
-131-

12. *** 

13. *** 

ARTICLE VI 

Administration 

1. A Code Authority is hereby constituted to co one rate with the Ad.-

ministrator in the administrati0n of this code. 

2. The Code Authority shall consist of not more than eleven (11) 

members to be selected from such ~rou~s and in such numbers as the Administrator may designate and shall be truly representative of the Industry. 

3. *** 

4. *** 

5. *** 

6e *** 

7. *** 

B. *** 

ARTICLE VII 

Trade Practice Rules 

1. *** 

2. *** 

3. *** 

4 . *** 

5. *** 

6. ** 

7. -~ * 

B. *** 

9. *** 

• 

10. *** 

11. *** 

9Bll 
- 13::-

1 2 . *** 

1 3 . *** 

1 4 . *** 

1 5 . *** 

16. No memb e r of the . ir.iustry s hall disnos e. of distr e sse d me rchandise ' . . 

u nl e ss such !!1embe r notifv th8 Codo ~ ... Hthori t y immediately a f t e r disnosal of 

. such distre •· sed me rcrJand5.s e , a .on'" v;i. t. h . such inf'0rm~tio n as · the .Cnde Aut 

and t he A<1n·1:_ist!'::tt or m:::ty 1H G->c ri"'::>e . eite l fall c onro ; titive i t ems· shall 

no t b..., sol d as G.i s i r e s s ed ·nr;r cLan(i s e uri o:c to De cemb er 2 6 , g en eral spring 

c ompeJv1. tive i terr1s shall UL' t b e s o1d Cl S disi r e s serl me.rchan d j se 'n ri or to 

Mothe rs t ay~ and Pe ra~ . summe r c o:!J"D eti t i v e i t erns shall not be s old as 

d i s t r ess ed me rchandisP ur~ or to J'uly 4 . 

ARTI CL'E VIII 

Modifi cat i on 

*** 

A8.TICL'E IX 

*** 

ARTICL'E X 

Pri ce I ncrea ses 

*** 

AR IC 'E XI 

ffective Date 

*** 

9811 
-133-

EXHIBIT A 

PART 6 

AS :dEVISBD AUGUST 18, 1 933 AlT:U 01JLY COlJT. Ail~IlJG CEAlJGED PORT IOHS 

(Draft of ce~be r 8, 1 933) 

*** 

CODE OF FAI:} COi P:!I:TITION 

roR THE 

LATIIES' BAH:UBAG I UDUSTRY 

ART ICLE I 

PUP.POSE 

AREI CL:c I I 

D~Ii TIOHS 

l. The tem 11 Industry" as u see herein incluo.e s the :-1anufacture of 

lacHes', n isses', and ch ildren's hc:!llcroags, oc tbool. s. and :purses, r:w.nufacturecl of any rnate:cial of any kind or nature. 

2. through 5. *** 

ARTICLE III 

HOURS 

---

*** 

AB.TI CLE IV 

iJAGES 

l. Except a s hereinaft.er provided, no employee shall be paicl_ at 

less t han the :ra t e of thirty...:five cents ( 35 \:· ) per hour uhen enployed 

within Greater Hen York and. the i;-Jued.iate vicinity, thereof, nor less 

than thirty cents (30¢) per ho-u.r when employed outsicle Greater Ne1: York 

and the i r:mecLiate vicinity thel~eof. 

2. Pendi'1g further investigation, the .Ad.r1inistrator n ay , unde:i.~ 

exce:p tio:::1al ci::·cu.c"T'stDnces , and UlJ On such cu~.1:~. i.tions as h e raay p re scribe, 

peri!.lit a P.euher o:::' thP :~r· r:t:u.s tr:,r to e!T:;loy ::.r ." n.e l~s at r ate s belou t he 

minirmn: 1.10.{!;0 he reiD e c:'Le.bl i 8~10d, l') rOvi d.ed. tli: J: i:1 n0 case shall such 

lower r a tes be l es.s than eit:;h ty pe:c c en t JO;'~) of such r: inimu..TTI nage , 

3 . *** 

4 . *** 

9811 
-134-

5 . Hereafter, the Administrator may, Hi th the ap :;.~oval of the 

President ancl after full study and investi . gation, establish, as a part 

of this Code, such basic rat es for the more sldlled classes of employees as may be necessary to further effectuate t he pU!'J.JOses of the Act. 

ARTICLE V 

GE1""E?AL J::A30R PROVIS~ONS 

1. l~ o ~oe rson under sixteen years of age shall be employed in the 

industry in any capacity and no ·:Je rs on under eighteen (J.B) ;>rears of age 

sha ll be err:Jloycd. at any r.1 anufa cturing operD.tion in the industry. 

VTi thL1 hirt~- ( 30) da~rs after the effective date of this Coc.e, the Code 

Autr .. o:.~] ty 1all submit to the Administrator a list and description of 

such op er.c:...t ions . 

2. t h rough 13. *** 

AR'!:I CLE YI 

A:Di :n;r STRATIOH 

l. A Code Authority is reb~~ constituted to cooperate rri th the 

Administrator in t h e ad.u inistrati on of this code. 

2. The Co d.e Authority shall co:.'l.sist of not more than eleven (11) 

meMbers to be s el ect ed in the iJonner hereinafter set forth: 

(a) Three (3) menbe rs shc;,ll be appointee" by the Associated 

Hru1dbag Industries of America, In c.; 

(b) Th ree (3) members shall be appointed by the National 

Association of Ladie s' Handbag I.~aaufacturers; 

(c) One (1) member shall be appointed by the Industrial 

Council of Leather Goods t·.ianufacbu·ers, Inc.; 

(d) One (1) member shall b e appointed by the l.lidn.est Handbag 

and &1all Leat he r ~ares Association, Inc.; 

(e) One (1) member shall be a:opointed by the Ladies' Handbag 

~~!anufacturers of the Pacific Coast; 

(f) One (l) member shall be appointed b3r the Administrator on 

the nomination of the Labor Ad vi sOI"J ]oard, and shall serve ni thout 

expense to the industry; and 

( g ) One (l) member shall be appointed by the Administrator 

to represent the A~inistration a nd shall serve without expense to 

the industry. 

9811 
-135-

3 . *** 

4. *** 

5. *** 

6. i.~embe rs of the InC..ustry shall be entitled to participate in 

and share the benefits of the activities of the Co<le Authority and to 

partici~ate in the selection of the members thereof by assenting to an<i 

comply ing · ·i th the requirements of this Cod.e and sustaining their reasonable share of the e~~enses of its administration . Such reasonabl e share 

of the expenses of adrninistration shall be determined by the Cocle Authority subject to revien by t h e Adoinistr~tor on the basis of volume of 

business and/or such other factors as rc1 ay be deened equitable. 

7. *** 

(a) To insure the execution of tl1e rovisions of this Code 

and p rovide for the conpliance of t he Ir..clustry ,_ i t h tl1e p rovisions of 

the Act ancl in particular, but '""'ithout limitation, to receive comp laints 

of violc:.tions of this Code , :.18l:e invest i gc;.t ions t he reof, p rovide hea:~in~s 

thereon e-ncl. a<ijust such comp l a ints an6. bring to the a t t ention of "the 

pro~er authorities :for p rosecution, recor :.~ enc.lat ions ailQ inforr.nation rel ative to unadjusted.. violations. 

(b) To c.d o~ t a constit·.Ition, by-larrs, and rules and regulations for its proced.ure a;.1d for the adr1.inistration and enforce!"lent of 

this CoC:.e, and. to subEli t the sa.rJe to the A<iuini str~"to:~ for his p~J roval, 

toge t he r '.l'i th true copies of Emy a.r1end.nen t s o r adcli t i ons \Then nade thereto, n inutes of meeting s ';7:nen helG., &nd such othe r inforr1a tion as to its 

activities a s the AciL1inistrator r.>ay deem necessai"J to effectuate the 

purposes of the Act . 

(c) To obtain from wembers of tl1 e infrast~J such info~ation 

and repo rts A.s are required. for the administration of the Code an<i to 

provide for submission by oenbe:i.~s of such i nfornation and r eports as the 

Administrator may dee:-n necessary for t h e pui1_Jose s l~eci te<i i ll Se ction 3(a) 

of the Act, nhich inforr:ation ancl. reports sh all be subEJitted. by m.er::bers 

of sue~ aili1inistrative and./o~ g overnment agencies a s the Administrator 

may designate ; p rovide<i t :1at noth inc; in t h is Cocle shall relieve a,.YJ.y 

member of t he in<iusti"J of any existing obli g~t ions to furnish reports to 

anJ governr.a ent a gency. lo individual reports shall be d iscl osed to any 

other :·1ember of t he industi"J or any other party except to such g overnmental agencies as may be directed by the Adninistrator. 

(d.) through (j) . *** 

8 . *** 

9811 
-136-

AR1ICLE VII 

1. 1~ r'lerchanc~ise manufa ctured subject to the ~l l'OVlslons of this 

Co cie s~1all beRr an U:::A label t o symbolize to purchasers of said merchandise the conc.i tions under rrhich it he.s been rJe.nufactured. 

2 . Under t he lJOTiers vested in the Adn inistrator by Executive Order 

of Octooer JA , 1933 , and under g rant of t h e necessary authority by him, 

the Co:ie Au tho:ci t~,. shall have the e:~cl,_lsi ve right in this ino.ustry to 

issue anl. sell said. labels to the members thereof. 

3 . E~ h label shall bear a registration nlli1ber esp ecially assibiled. to eE'.ci1 ner1ber of the industr;:- by tl:e Code Authority, a.'1.d shall 

re:.1ain attacheC. to all such mercha.."lclise nhen sold to the l~etail distributor. 

4. .A:..Ty and all members of t h e ind.ust17r may app ly to the Code Authority fo:: a per r:i t to }JUrchase and use such 1i:::'..A label, nhich :perni t to 

use t h e Jaoel shall be ~ran tec1 to thmJ, but only if ancl so long as they 

con l~,. r:-1 i ~1 t~1 is Code. 

5 . Subjec t to the ap;.Jroval of the Aclnini strator, the Code Authority shall establish r11les and regu tions a nd ap~1 ropriate machinery for 

the issuance and. sale of labels c .. nd. the inspection, examination and 

supe:cvision o:i.' the practices of nenbo rs of the industry usinb such l abels fo r t he purposes of ascertaining the riGht of such members of the 

industry to the continued use of sc.ic .. labels; of p rotecting purchasers 

in rely ing on said labels; and of insuring to each individual r:1enber of 

the industry the"t the symbolisn of sa id label ni1.1 be :-1 aintained by 

virtue of c omlJlia nce ni th the :p rovisionn of this Code by all other members of the inc.ustry using sa .. icl label. 

6 . Tho che e rJade for such labels by the Code Authority shall. at 

all ti:1e s be subject to supervision and ord.ers of t h e Aos,}inistrator. 

A:a.TICLE VIII 

*** 

ARTICLE IX 

LiODIFICATION 

*** 

L'lTICLE X 

l.IO.JOPOLI3 S I ETC. 

*** 

9811 
-137-

A.:"1T I CLE XI 

**• 

A.rJ:li CLE XI I 

EF7ECT I~ DATE 

*** 

E:xt-liJ3IT A 

PA.:t T 7 

AS ?..EVISED AUGUST 18, 1933 AYD OlJLY COFTAL~E:G Cill.NG2:::D PORTIOlJS 

(Draft of :Decenber 12, 1 933 ) 

*** 

*** 

1. *** 

CODE OF FAL?c COl.iPi:TITIOi:J 

:5'0J. TilE 

LADD~S' HAHDJ3AG i~U STRY 

ARTICLE I 

PU3POSE 

ARTICLE II 

DEFETITIONS 

A:rtTICLE III 

rtOURS 

2. no pe rson employed_ in ship in , clerical, or office uork, 

unless he is em:ployed in a managerial or executive capacity and earns 

not less than thirty-five dollars $35.00) ~e r rreel: , shall be p erillitted 

to ITor:.;: in excess of forty ( 40) hours 11 er ;reek ve :;. a..~od over any one ( 1) 

conth period. 

3. The l)rovisions of this Article shall not ap::> lY to natchmen or 

outside sa lesnen. 

4 . *** 

5. ~** 

9811 
- 138-

ARTICG IV 

1 . Except as herein~fter ro7idcd , no employee shall be paid at.less 

t han the r ate of thirty-five 35~n ~)e r hour ?hen employed rri thin t~e City 

of Ne -, York the terri tory embrr:1.c0d v i. thin a r .:;,cli us of t h irty-five miles 

of Columbus Circle, nor at less t~1an t ... ~o r :1te of t hirty (30¢) per hour 

\7hen empl oyed in any other part of ~w Uni ~ed Stc.tes. 

2. Pending further investi g~t i.('n: the Administrator may, under 

exceptionol circumstances, a.nd U.}Jun m ... ch. conditions e.s he may prescrib~ , 

permit a membe r of the industr~r to enploy l earners at rates below the 

minimum nage ·herein established, ln·o\ i ded i}·1.a t in no case shall such lower rates be less ti1an ·eighty per cent (J-..'%) of such mi:::1.imum wage. 

3. *** 

4. *** 

5 . Hereafter, "'ihe AdmL .. i st:: tor rn,qy , iii th the approval of the 

President and after fa..ll st dy e: r::.. in .... .,--;igation, and after such notice 

and hee.ring as he shall pre • ..... rib ·· . st ai)~_ish , as a part of this code, such 

basic rat e s for the more sk~lled r·lasse s of em)lo~rees as may be necessary 

to further effectuate tna P''rpc.;c . of tne Act. 

GE :rFRAI:_L 3C.. _lROVI SIO! S 

1. through 10. **lll 

·. 

11. liTo member of the ndustr~r shall :::; ive out work to be performed' 

in any home or d1.7elling p a ei .:n:t.!ept tnat this prohibition shall not 

apply to hnnrlueacli. g hanC. ·oche 1e; O.t' ·- ar:~o broidering, and except that 

hand S3i1ing at hom " · 1all ~ pe... !-~cu. ·. ~ i 1 ~ L:_y 1, 1934, but shall not 

be per1.1i tted thereaS r . '11? Co ... ; 1LUtr .. i • ... v· .. ·mll , in conjunction with 

such state governmer, s and s 'Ch oa:rt ... d:E! l "Pe FeC..era l Government and 

such other a-scncies s the dminj t t•att- • rr.a:.r e signatc , study and inves 

gate the nro blem of homework in tld s Industry, and shall make to the A\.WLI•• • 

i st . c.. tor r e coiuiTlen.dations for the effec tive and ap:?ropria te control of 

horr.e\ crk 11.s is herei permi t te :;, ou.ld the .Administrc::.tor find.it to the 

be st inte:;.·'3st of t -.e- : r ... ~ y .}!' o t. ~·.:. .. est . L. ~res ts of labor or otherwise necesnary to f·· her 'fee .L ;;e t · pur s.s of the Act, he may furthe r restrict, or wh ... l y p .. Jhi t/ ~, .1E: ."!'u.l: t · e of homeV~ork in this in 

try. 

12. and 13. *** 

.Ar:- .. ICLE I 

9811 
*** 

*** 

*** 

*** 

*** 

*** 

-139-

ARTICLE VII 

NRA LABEL 

ARTICLE VIII 

rRADE PRACTICE rtULES 

ARTICLE IX 

MODIFICATION 

ARTICLE X 

ltiONOPOLIES, ETC. 

ARTICLE XI 

PRICE INCREASES 

ARTIClE XII 

EFFECTIVE DATE 

EXHIBIT A 

: PlR:' 8 

~S REVISED AUGUST 18, 1933 AliD Ol\lLY COl1!TAI NIHG CHANGED PORTIONS 

Draft of Dec. 21, 1933 

*** 

*** 

Hl 

ARTI CLE I 

PURPOSE 

ARTIGLE II 

DEFINITIONS 
*** 

*** 

*** 

*** 

*** 

Section 1 through 13. 

-140-

ARTI CL.E I I I 

HOURS 

ARTICLE IV 

~A ES 

ARTICLE V 

GENERAL LABO~ P~OVIS IONS 

ARTICLE VI 

ADMI. LI STRf\::ri Ol~ 

ARTICL:;; VII 

I:RA. l ·ABEL 

A::.lTI CLE VI I I 

TRADE PRACTICE PULES - ·- ·---

*** 

14. No member of the inclustry shall accept the return of any merchandise shipped to a purchar<:Jr, nor al1on credit therefore, nor exchange 

merchandise \7here the merchandise has b e en shipped in accordance -rri th spa 

ifications and within the sp e cified time , nor where the merchandise has 

been in the possession cf the purc1aser for more than seven (7) days. 

15.& 16. *** 

ARTICLE IX 

IJODIFI CATION · .. • :-

*** 

ARTICLE X 

MONOPOLI::!JS, ETC. 

*** 

9811 
*** 

"*** 

9811 

-141-

ARTICLE XI 

PRICE INCREASES 

ARTICLE XII 

EFFECTIVE DATE 
Classified List of Manufactur ers 

~ " 3 p ",1' t s 

\ 

9811 
9811 

Retail 

-143-

EXHIBIT 11 ] 11 

Par t 1 

NEW YORK LIST 

l?RII"'E RANGE. 

Uu t o $1.oo •••••••.••• A 

$1.95 and $2.95 . • • • • • • • B 

; $4. 9 5 • • • • • • • • • • •. • • . c 

Over $4.95 • • • • • . .• • • D 

CLASSIFICATI ON 

Hanufactur er • • • • 

. Manufacturing Jobber 

• • • • 

• • • • 

• • M 

' 

• • J 
NAME 

A & A Bag NoveltyCo., Inc. 

Acme Handbag Cor.u . 

Adams, H. A. & Co., Inc. 

Amdur, Lange & Sob el, Inc. 

A'Tleri can Handbag Co. 

Amerloid Company 

Anchor Handbag Comuany 

Anish, A. 

Annette Handbag Co. 

-144-

NEW YO~ LIST 

ADD:rtESS 

54 W. 21st St. 

1 w 0·~ t h s t .. 

36 ~. 

699 ~ l3~ch St., Bronx 

39 :a r oor.o E- Ctc 

505 Cvurt St., Brooklyn 

69 3 :B.:.' ~ arj wa r 

12Gl ~.; .:: ·ua '.iwe.y 

38 {. 3?nd st. 

Aouel, B.~ Inc. 10 vl " 3~~:; C.. St. 

Artistic Bag & Neckwear Co., Inc. 12G9 r0~i~~y 

Artistique Bag Co~. 14 B. z:~n d St., 

Art St yle No 7elty Co. 

Associated ee dl crafts 

1S5 22nu S ~ ~ ~ Brooklyn 

Astorloid Uf ~ Co. 

Avon Leather Novelty C0. 

B&S Suecialt y Co. 

Bagfair, Inc. 

Banita Leather NoveltyCo., Inc. 

Banner BroG., Inc. 

Banwer Mf g e Co., Inc. 

Barclay Handbag Co. 

Barne t t Mfg. Co. 

Beaux Arts Bag Co. 

Berman Ba ~ Inc. 

Bienen-Davis, Inc. 

Biltmore Bag Corp. 

Blatt, A. 

Bloom, Charles, Inc. 

Blum & Marcus, Inc. 

Bricl..anan & Co. 

Bryon & Bandy , Inc. 

C&S Bag Comuany 

Carnegie, Hatti e Shops 

Carole Bags Corp. 

Century Handbag Co. 

Character Bags, Inc. 

Charles Ha1dhag , Inc. 

Coblenz & Comuany 

21 W. 3i.st St. 

187 l'~:;. cE' r St. 

302 T:: f'th A-ree 

142 W, 2.21·d St. 

13 6 1 if ~ 21 ::; t s t • 

5 :i! L." t Ave. 

6 W. -~ h St. 

32 Un:i. 0r. Sq'..lare 

25 W. 31.st St., 

33 W. ·34th St. 

;- 1., ~. 3?-ncl st. 

11 W. 30th St. 

38 W. ~T~d 8 t • 

lE W ~ .~ th ' 3 t. 

38 W. 3~~ad 8t • 

11 W. 0t~ St. 

873 Broad way 

24 W. 25th St. 

42 1£. 4S th St. 

10 4]. 33rd St. 

315 Fift h Ave . 

26 ·~vav rly Place 

22 W. 32nd St. 

6 vV. :32nd s t • 

4 7 vV. 3t..:: t h s t • 

22 W. 3Bt'1 St. 

27 W. 23r i St. 

54 W. lst St. 

Cohn & Rosenb er ge r, Inc. 

C~lonial Bead Co., Inc. 

Consolidat ed ri ~~ ine Co. 

Croclie t Novelty Mill s 

Customcraft Leather Goo ds Co.Inc. 40 "· 17th St. 

9811 

Brooklyn 

. 

. CLASSI .. 

PRICE RANG~ FICATIOl~ 

A&B 

J3 

D 

MB 

A 

A 

J3 

C&D 

J3&C 

J3&C 

B 

B&C 

A&B 

ABC 

A&B 

A 

BCD 

B&C 

ABC 

A 

B 

A 

A&B 

B&C 

C&D 

B 

B 

B 

B 

B 

D 

B 

c 

B&C 

A 

B 

B 

D 

BCD 

ABC 

A 

A&B 

A 

M 

" " 

II " 

" " " " II 

" " 

11 

" II 

" 

" II 

II 

J 

M 

" " " II 

" " " " II 

II 

II 

II 

II " 

" " " " " " II 

" II 
NE'J YO:?JC LIST 

al sheim, h~ . & Co. , Inc. 

eAlteris, M. 

eauville Bags Inc. 

Dei t sell Bros. 

e1-elman Bag Co. 

eLuxe Eanc'ber Co . 

emerer 3ro s . 

~ea r:10 . :ac.g l:f g . Corp . 

· icl:stein Boord & Co. 

[lobule :;,~ &:. Soi1 Leather Goods Co. 

ormar Be.-s Col'"lpany 

iD rit Tra~un Co., Inc. 

!E c:dlaus, E. H. 

iElk Ba.:; Com·oany 

:2llas I\:nitting Uills, Inc. 

~mkay Hc-no.bag 

Empress ]andbag Co. 

Exc e llent Leather Goods Co. · 

Feller Bros. 

Fine Arts .rTovel ty Bag co ~ 

Fishbei:P- & Co., Inc. 

Fl a.,"C , Cha rles 8: Son 

Franco-American Leather Goods 

Georg e Franlc & Com·oan'r ~ J 

Frank , E. H. - Rialto Co., Inc. 

Frer: ch Bag Shon 

Fried & Scheinbe r g , Inc. 

J & A Fri edbe r g , Inc. 

F ri e drna.n , Lobel; Inc. 

Galek, Hilel 

Gem Ba~~· Corr."9a:cy 

J & P GeorGe 

Ginzb~r , J. & Sons 

Gol cbe r g , Gus Co mpa y 

Gold£l om eath ~ Goods Co. 

Gol d Seal Imp orters , Inc. 

Gol ~stein Rosenfield , Inc. 

Gra.celine Handbag s , Inc. 

Halberstadt, Inc . 

Han es, Elizabe th, Inc. 

He r man Bag Cor-.) . 

Herman i·ovel t y Co., Inc. 

Hilf Bag Mf g . Co., Inc·. 

Rob e, Cie 

Hraba , Louis~ . Co., Inc. 

Hortenau, Alfred J. 

9811 

Co. 

-145-

10-17-35 

ADDP..ESS 

302 Fifth Ave . 

38 'J. 32nd St. 

ll ·.7 . 30th St. 

36 E. 31st St. 

7 1JI . 36th St . . 

162 Madison Ave. 

42 2 . 20th St. 

45 :;; . 46th St. 

135 1"7 . 17th St. 

12 '. . 32nd St. 

122f5 Broa dl!eY 

11 E . 2 6 t l1 S t . 

4 .. . 32no. st. 

ll . 30th St. 

77 S·pring St. 

2581 Atlr-ntic Ave., 

50~. 29 t:1 St. 

36. Z. 10th St . 

675 Broad"\'ray 

10 TI . 33r c. St . 

39 17 . 32nd St. 

450 Broome St. 

303 Fifth Avenue 

171 G-reen St. 

23 E. 26th St. 

23 ';' J.:.J . 48 t h St. 

45 20th St~ 

PRICE 

RI\.HGE 

B&C 

ABCD 

C&D 

C&D 

ABC 

B 

B&C 

D 

A 

B 

A&B 

A 

D 

A 

B' ':l vn .BCD 

A 

A 

A 

B&C 

l3&C 

C&D 

A 

B 

A 

A 

A 

971 Third. Ave. , Bkl ;vn. A 

< 38 \l . 32nd St. 

7 81 Pro spect Ave., 

307 Fifth Avenu e 

347 ~-d . 37th St. 

102 Prince S·" \J • 

35 ':i . 32nd St. 

15 ~l . 24th St. 

30 -"' ~ . 33rd St . 

303 Fifth Av e . 

20 't'T 33rd. St. " . 

10 E. 33rd St. 

21 . 67th St. 

6 w. 32nd. st·. 

:Bronx 

104 S. 4th St., Bklyn . 

333 Fifth Avenue 

5.66 Seventh Ave. 

29 E. 19th St. 

39-18 51 st St., Ti oodside 

Long I sland 

B 

}3 

B 

C&D . 

A 

B 

A 

:OCD 

l3CD 

B 

BCD 

B 

D 

A 

BCD 

D 

ABCD 

A 

CLASSIFICA'l1

l Oii 

M 

II 

II 

II 

II 

II 

11 

II 

II 

II 

!t 

If 

II 

If 

II 

11 

n 

J 

If 

If 

II 

It 

M 

It 

II 

II 

II 

If 

H 

J 

M 

It 

J 

M 

II 

J 

M 

M 

II 

II 

II 

II 

It 

rr 

It 
-146-

NEW YORK LIST 10-17-35 

NA!vlE ADDRESS PRICE RANGE CLASSIFICATI< 

Ideal Lea ther Suspender 

Import Bag & E.eac. Corp . 

Irving Handbag Co . 

Israel, Jack , I nc. 

Trim. Co. 433-t DP way 

15 E r. 32nc~. S t • 

307 s L t h Av e . 

14 E. 32nd St .. 

B 

BCD 

A 

B&C 

June, D. 

Junvenile Co., Inc. 

K. G. B. Leather Goods Co. 

Kadin Bros. 

Kaplan .& Gordon 

Kasnowitz, Mac & Sons 

Kirk, Varso 

Klein, Louis Co. 

Kleinert Rubber Co. 

Kop pel, J ay Coru:9any 

Koret, Inc. 

Kraus, Loeb Handbag Co. 

Kregler Leather Goo ds Co. 

LaRue Bag Company 

Leon Ace .. Import Co. 

Lesser Bag, Inc. 

Lewis,. Nat, Purs e s, I nc. 

Librick , A. & Sons 

Lincoln Leather Goo ds Co. 

Lind, Martha 

Lorraine Novelty Mf g. Co., Inc.· 

Lowy & Mund 

Lujean Evening Bags, Inc. 

Lustgarten, B. 

M. s. Novelty Co. , Inc. 

Mack , Be tty R. 

Made Right Bag Co., I nc. 

Magid, A. I. Comp3.ny 

Mailot & Company 

Marino, c. 

Markay Bags , Inc. 

Markel, I nc. 

Maroq linerie de France 

Marvel Bag Company 

Maste rcraft Bags , I nc. 

Maxon ~ co. 

Me isel Company 

Me rit Leather Goods Co. Me tter, M. Meyer Leat he r Goods Co. Miller, Penn 

Modern Handbag Co. 

Morgenstern & Brosseau 

9811 

92 E. l Ot h St. 

40 Wo 22nd St. 

9~. We 31st st. 

20 We :>:. 6. St. 

3·')7 :r~:.. L:l J rc~me 

485 i~: , h .Av e~· .e 

24 t;j . 30 tll s "S --~ 

33 E. ~)·· :.~Q St . 

5CO :,.;ca.,~.n y, :Oklyn 

1431 L:vr t le Ave.,, Bkl yn. 

D 

A&C 

B 

B 

ABCD 

A 

D 

A 

A 

B 

D 

A 

B&C 

9 rr. 31st St. C&C 

10 E. ~~ St. ABC 

'( 7 7a.:.hj -lt;ton Av. Bkl yn B 

130 W. :30 th St. D 

324 o~B ry A 

6 "! ,_ 3.:?nl S t • · M3 

31 6 

35.2 

203 

. 130 

165 

38 

F ~~ :.h Avenue 

Four ::h Avenue 

Wo 2G h t .. 

r.tad.ison Avenue 

'ff. 26th St. 

r:r . ':)8th St. 

BCD 

B 

A 

BCD 

A 

A 

140-10 Fr a.nld i :n , Flu shing c 

110 w. 27 t h St. A 

14 }j . ?-3rr -~- . BCD 

12 :E . r:·o th St. BCD 

125 Le:;.·_i_ 'h;t. on Ave. ABC 

30 B. ~~~:rd St . A 

15 E. 32nd s+,. C&D 

150 E. 23th St. A&B 

29 w. :'Gt.: h t~ A&"S 

10 17. 33rcl St . C&D 

12 . 32nd St . A&:B 

38 w. 32:-ld St. · B&C 

14 E. ~3 d st. B 

24 w. 30vh st. . A 

147 w. 25 th St. A 

27 w. 57th St . D 

38 w. 32:-ld St. A&B 

38 w. 32nd St. B&C 

M 

M 

J 

H 

M 

M 

M 

II 

II 

tl 

II 

J 

11 

II 

H 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

J 

II 

~i 

II 

,, 

ll 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 
EW YORK LIST 

.AME ,,, - ~ . 

-· oskowitz, Ha~ry & Co., I?c• ·urra;yy, James C. Co. , Inc. 

adelhaft g Co myany 

'adlor Lea ther Goods 

·ayda Eag Company 

·ew York .A:rt Bag Company 

·ow York Bag Co. , Inc. 

'i bur, William 

ovelty Handbag Company 

1ur Bag Corporation 

1 & R Leather Goods. 

'arisian Handbag , Inc. 

'aristyle Bags Company 

'aul b() . company 

!rf~ction Belt Mfg. Co. 

>ierce Handbag Company 

>ine Brothers 

'Oneh, G. 

'Opular Handbag Corp. 

'owers & Lichtman 

'rime Handbag Cc,mpany 

~rin~ess Handbag Company 

'yramid Leather Goods Co. 

lainbow L~ather Goods Co. 

lath, Wm. C. Company 

leiman, J. ~ir b1 y Handbag Conrpany 

aitter & Da~chman 

Ritter & Ritter 

Robb ins & Weitz, Inc. 

Ro~d~lheimgr, Edgar, Inc, 

Roe~ ath~r Goodg 

Ro~e, S. B. Company 

Harry Ros~nfeld 

Roth, Harry 

Roth, Max 

Rout, Rosenthal Company 

Rubin LeathQr Goods Corp. 

Rubin, T. 

Ruby Bagz , Inc. 

Sachs Bro th~rs 

Salon Novelty Bags Inc. 

Saniton Sp~cialty Co., Inc. 

Scho~nholt~ & Weeks, Inc. 

Schwab & Rebell 

Schwart~eisberg Handbag Co. 

, 

9Sl.l 

.. 147-

10-17-35 

.ADDRESS PRICE RANGE CLASSIFICATION 

1225 Broadway 

250 E. 43rd St. 

11 W. 30th . S-t . 

1 qO W •30 t4 S t . 

.J.l ·w •. 30th st. 

4 .W. 32nd ~t. 

22 W. 32nd .St. 

2432 Broadway 

10 E. 33rd .St. 

228 Grand St., Bklyn. 

221 Powell St., Bklyn 

7 W. 30th St. 

20 W. 33rd . ;:it. 

. . 22 W. 32nd S t • 

38 w. 32nd st. 

9 . w. 31 s t s t • 

1421 E. ~ Y. Ave., Bklyn 

32 Union Square 

28 w. 25th st. 

53 W. 23rd. St. 

252 Penna _. Ave ·., :;Bklyn 

303 Fifth Avenue 

6 W. 32nd St. 

;30 :C.. lOth. St. 

.31 E. 32.n.d St. 

3 w. 29th st. 

l4 E. 33r.d St. 

3 ;n. 29th .St. 

1.4 E. 33rd. St. 

.38 w. 32~d s t • 

303 Fifth Avenue 

6.93 ]roadw:ay 

225 Fifth Avenue 

130 Madison Avenue 

14 E. 33rd St. 

491 Broadway 

22 W. wqnd St. 

6 W. 32nd St. 

J O'? E. 19th St. 

180 Madison Avenuo 

79 Fifth Avenue 

19 E. 22nd St. 

:J 48 W. 23rd St. 

15 E. 32nd St. 

126 w. 46th st. 

15 E. 32nd St. 

A J 

ABCD M 

C&D M 

B II 

B ll 

A n 

A&B ' II 

. A&B " c " 

.A If 

A tt 

A rt 

BCD fl 

.A.BC N 

A If 

BCD , 

A " B II 

A II 

.A&B J 

A M 

A " BCD IT 

.A rt 

B·cn II 

B&C fl 

A II 

B&C II 

B tl 

B II 

D J 

A M 

.A&B II 

B It 

.A. tl 

A 11 

B tl 

B&C II 

A II 

B " 

.A II 

A. II 

.A&3 11 

C&D " D n 

.A&B II 
NE\7 YORK LIST 

Seidman & Glickstein 

Service Handbag Co m:?any 

Siegel, A. L. Co., I nc. 

Silver, tf. · 

Sims, J . 

Sloane Bros. 

Spring croch0t Company 

Stair, David 

Stanley & Stanley , Inc. 

Stein-Drew Corporation 

Steinman Co., Inc. 

Steinma.n, Louis I. 

Stone, Harry S., Inc. 

Style :Sag Company 

Superb Leather Goods Com_Jany 

Ta ilored Handbag Corr_Jany 

Tey~oid Handbag Com a~r 

Triangle Lea ther Goods Company 

D. S. Pillow Corpor ation 

Unique Style Allige.tor Bag Co. 

Vanity Fair :Sag Co., Inc. 

Variety Leathe r Goods Corp . 

Vienna :Sag Co., I nc •. 

Vogue Lea ther Goods Corp . 

~agman & Company 

Uarner anufacturing Co m}a~r 

VTeinman, iaY- , Inc . 

eisberg , . Co. , I11c. 

Wolfe, !1, E. COJ11')any 

1Jollison Compa.ny , Inc. 

QQ11 

-148-

10-17-35 

PRICE RANGE CLASSIFICAT 

93 Crosby St. 

12 w. 32nd st. 

20 '1 . 22nd st. 

149 As~ford St., Eklyn. 

39 W. 32nd St .• 

14 B •. 32nd St. . . 50 Spring St. 

35 .w. 32nd st. 

325 Fifth Avenue 

. 1214 :SroadYray 

20 Tj, · 33rd St. 

2g E~ l Ot h St. 

6 "'] . ',7CJ.:~d st. 

24 TJ •. 25t h St. 

220 Ala~a ma Ave •. '. lt~'" lyn. 

19 E. 48th. st·. 

307 Fifth Avenue 

608 :Broadway · 

11 E. 26 th st. 

147 i7, 26 t h St. 

1261 roadwa~r 

39 W. 32nd St. 

34 '.7. 46th St. 

114 i!. 30th St. 

133 TJ. 25th St. 

49 E. 8t h St. 

46 '7. 20th St • . 

110 -:r . 17th st. 

303 Fifth Avenue 

42 \V. 33rd St. 

A 

A 

A 

A 

] 

A&?3 

A&B 

A 

C&D 

] 

BCD 

A 

C&D 

A 

A 

c 

A 

A 

1\. 

:B&CD 

B 

C&D 

:S&C 

A 

A&B 

A 

B&C 

ABC 

C&D 

M 

II 

II 

II 

II 

II 

II 

II 

11 

J 

L'I 

II 

11 

II 

tf 

J 

II 

M 

f'l 

II 

. J 

M 

'If 

11 

II 

II 

11 

J 

M 
-149-

E:iJfiBIT 11B11 

P.ART 2 

m.-T Cf TOVJ!: LIST 

PHICE RANGE 

Rc tc?i1 

l-p to $1 . C'·O ........... . ...........•..•.•.• A 

~t> l. 95 ru1d $2. 95 •....................... . .• B 

$4. 95 ••....•........ .. •....•......•.••..•• c 

Over $4. 95 •.. ... ..............•.....•..••• D 

i [c:> nu_f nc t-u.rc r •. .- .... . ...•.............•.••• ·,· 

Uc::..1ufncturing J obbe r •..................••. J 

9811 
- 150-

0UT OF TOW T LIST CLASSJ 

Price FICA- NA E ADDRESS ..;..C~ I T_Y'----S'--T...::..A_TE RANGE TI.Q_ 

Aarenau & Wo lf, Inc. -- ------ Fal l River, M RSS. B&C 

Adolph ea ~er Goods 

Aetna Le 1~ha r ov eJ~ y 

Allen Leather G''Od s Co . 

A~ity Le ather ?roJuc ts Co. 

Arrow Le a the r Goods Co. 

3641 \'J est 26 th Stra e t icr~ o, Ill. A 

-------- Union Ci ty, N.J. A 

-------- Al ler. town, Pa. A 

4~,.' n Ave . a t Lo .:ust St. We st J3end, Wis. BCD 

325 s. · " r ket Stree t Chicaeo, Ill. A&B 

K. Ats u.les 513 Boston Str ee t W. Lynn, Mass. C&D 

D. Ba l azs 251 Post St. San Frnncisco, Cal. C&D 

1. G. Pa lfour Co. D 

Beacon Lea the r Goods Co. 

Better Bag Co . 

Black f g . Co . 

Att l ator o, Ma ss. 

Brid ~8p or t, Conn. 

b~gn, N.Y. 

Pennsburg, Fa. 

A 

Alphonse Bo llAck , Ltd~ 

Bose~, Inc . 

Smith & 3rd St. 

19-2.1 ' · 4th St. 

783 .. ~d ssion St. San Fr 1ncisco , Ca l. 

A 

B&C 

.A&B 

Hugo BoseR Co. 

Braided F~bric Co . 

Max Brill 1 s Sons , Inc. 

Brynrnor e LeA ther ~.2. s. Co. 

The Buck3ye en th e~ Co . 

Chas. Burst e in & =·lC ;;_ . _ . . 

Cameo Hand BPg , Inc. 

Angelos Ca ssaris 

Century Leather Gds. Co. 

Nichol as Chakoutis 

Cla ssy Leather Gds. Corp. 

The Co ed HanQ B~g Co . 

Concey Hand-0 c.1g Co . 

Cordova Shops, Inc . 

Cornell Mfg. Co . 

Cresc ent Le a~he r Goods 

CryP tal -:o . Crystal Leacher Gd s . Co . 

Davis-Alberts Co . Inc . 

The Dorothy Designs 

Andrew Dougenis 

Eagle Leather Goods 

Eco nomy Pr oducts Corp . 

Eisman Kaye Co . 

Elite Le a ther Goods Co. 

Enger -Kre ss Co . 

253 HArr i son St. 

20 Jelj n Stree t 

Chest nut Stree t 

Kirk 3l d.:; . 

2 l. -_,_r !':cC S t:"' eet 

6235 '?A;,~· e:r so n Ave . 

49 V ;'' fl"H1 ~'!. r8e t 

7-29 C;:-,:..lu} ::it . 

213 Inst itut e i lace 

1399 lest Ave . 

21·-?7 Gorr'l.0n Ave . 

15 Sno ~" S +,r ee t. 

85 I, roorr1 ::: t . 

3d) ·vv • Arwm s S t . 

99 Ch <J.un~y St. 

507 Textile To wer 

46 ~l!TI:cl n St. 

173 Surnme1· tree t 

512 S. Feo ria St . 

23 S. Fr anklin St. 

42 Summer St. 

Enterprise Accessories, Inc .38 School Street 

Equitable Handb~g Co.Inc. 191 Redmond St. 

·Fancy Le a ther Goods Co. 305 Grant Ave . 

Fancy Le a t he r Goods Co. 36 Hopkins Flace 

Fashion Bag & Lea th.Nov. Co.31 E.Kinney St. 

9811 

Mr~ ri ::m , Ohio 

Spri ngf ield, Ohio 

Fru vldeli<:~e, R.I. 

Pittsfi e ld, Mass. 

Nevv Br1L"lswick, N.J. 

Coshoc ton, Ohio 

E·.1 ston, Fa. 

Bridgeport, 

W. Lynn, 

Ch ic Ago, 

W. Lynn, 

Iviidd J.etown , 

c:licago' 

Long IslAnd, 

3u£falo , 

Fx-ov-~a ~n ee, 

Frovi_QGn ce, 

J er s ey Ci t y , 

C.i1icago, 

Boston, 

Seattle, 

L.,rnn, 

Conn. 

Mass. 

Ill. 

Mass. 

N.Y. 

I 11. 

N.Y. 

N.Y. 

R.I. 

R.I. 

N.J. 

Ill. 

Mass. 

Wash. 

Ma ss. 

-neD 

A 

BCC 

AB 

D 

ABC 

A 

D 

c 

BC 

A 

AB 

D 

BC 

A 

AB 

CD 

ABC 

A 

ABC 

A 

Boston , Ma ss. A 

Chicago, I 11. B 

Chic ago , I 11 . B 

Boston, Mass. AB 

West Bend, Wis. BCD 

Greenfie ld, Mass. C 

New Brunswick, N.J. A 

San Francisco, Cal. BCD 

Baltimore, Md. A 

NewArk, N.J. A 

M 

II 

" " 

" 

" " 

" n 

n 

" " 

II 

11 

11 

n 

" " " 

" 

" 

" 

" 

" 

J 

u 
-151~ 

Cla 

OUT OF TOWN LIST ssi 

J 

NAME ADDRESS CITY STATE 

. :fi 

Pr-ic-e· ca 

:.. STA!JJE Rang~ t ion 

ashion Ladie~ ·Han dbag Co~ 

orst & ·co. · · · · 

. J. Fox & Co •. 

. B. Franklin 

ranklin Bag _c9. 

234 S. Ma rket St. 

253 !-I. 12th St. 

N.E.Pratt & Greene 

130 Essex· Street 

26 Wingate Street 

Cnicago, 

Philadelphia, 

Sts .. Baltimore, 

Boston, 

Havernill, 

I 11. 

Fa. 

Md. 

u;nss . 

Mass. 

anson Mfg. Co.rp. 

effen-Weene Bag Co. rnc. 

indoff & Grunther, Inc. 

itlin Bros.& Rush, Inc. 

365 Market Street San Francisco, Cal. 

lll Beach Street Boston, Mass .. 

19 S. Ploinfield Ave.Flainfield N.J. 

232 i··. ll Street Fhiladelp{lia· Fa. 

oe Gleicher 972 Springfield Ave. Irvington, N:J. . R. Godfrey Co. 14 Pearl Street Gardner, Mass.-

oldberg Bro~.Handbags;Inc. 

oldberg & Seltzer, Inc. 

·oldsmi th Bros. 

Liberty Street Newburgh N.Y. 

12 No. Cherry St. Poughkeepsie, N.Y. 

315 Linden St. All ento wn, Pa. 

J.M. Goldstein & Son 709 Mission St. San Francisco, Cpl. 

·ould Hand Bag Co. 

race-Mae Leather Goods 

rving Guberman Bag Co. 

Co. 30 S. Wells St. 

110 Lincoln St. 

:amilton Leather Goods Co. 

:arlic Bag Co. 

:arpley Industries 

-:arrison Leather Goods Co. 

eimer Bros.& Frankel 

erz & Kory 

'igh Acres Mt. Guild 

[ood Rubber Co. Inc. 

iudson Leather Gds.Co.Inc. 

27 S.Franklin St. 

Webster St. 

'22 Elkins St. 

231 Harrison Ave. 

230 Fine St. 

ngber & Co. Inc. 1307 . Market St. 

.nternational Leath.Gds.Co. 141 N. ll Street 

fustin Leather Goods Co . . . ' 

' & K Leather Goods Co.Inc. l Brookside Ave. 

3enj. Kash 407 E. Fico St. 

3enj. Katz Washington St. 

Celler Bros. 311 tv'ount a in ~d. 

Cewar Co. -----

reuter Leather Goods Co. 2418 W. 9 Street 

~a Mode Handbag Co. 226 S. Wells St~ 

~andi~ Leather Goods, Inc. 284'~tate St. 

~aSalle Hand Bag Co: Inc. .. 15 Courtland St. 

;.Jawson Studios ·· · 93 Ma ss. Ave. 

~eather Fabric Creations,Inc. ----

~icht & Kaplan, Inc. 35 Lrrnder St. 

~iebersonNovelty Co. ll9· S. Wells St. 

3811 

Boonton, N.J. 

Ch icago, Ill. 

Boston, Mass. 

Boyertown, Fa. 

So.Norwalk, Conn. 

.So. Boston, Mass. 

Boston hla ss. 

Garnerville, N.Y. 

Will i amsport, Pa. 

Flowery Branch,Ga. 

Water town, Mass. 

Nyack , N.Y. 

Fhilade l pn ia, Fa. 

Fhiladelphia, Fa. 

Nocona, 

New Brunswick, 

Los Angel~s; 

Nyack, . · 

Union City, 

Gloversville, 

Los Angel~s. 

Tex. 

N.J. 

Cal. 

N.Y. 

N. J. 

N.Y. 

Cal. 

Chicago, .~ Ill. 

Perth Amboy, ~.J. 

New Brunswick, N.J. 

Boston, Mass 

Trenton, N.J. 

Newburgh -, ;_,. N.Y. 

Chicago, Ill. 

B 

ABC 

ABC 

AB 

A 

B 

AB 

A 

AB 

D 

'BC 

A. 

AB 

ABCD 

AB 

B 

B 

A 

BC 

A 

A 

A 

A 

AB 

A 

A 

A 

BC 

AB 

B 

A 

BC 

A 

BCD 

A 

B 

BC 

AB 

AB 

ABC 

A 

A 

BC 

M 

II 

" II 

II 

M 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

II 

J 

M 

II 

II 

II 

tl 

II 

11 

II 

II 

II 

II 

tl 

tl 

II 

II 

" II 

" II 
.-.152-

OUT OF TOWN LIST 

NAME ADDRESS CITY 

DLASPrice SIFISTATE Range CATION 

Anna B. Locke 

The Locktite Co. 

Luce Mfg. Co. 

James H. Lunn Co. 

Makewell Leather Goods Co. 

H. Margolin & Co. 

Mastercraft Le ther Goods 

Maurice HandbAg Co. 

The Meeker Co. 

Merrimack Valley Bag Co. 

Meyers rv ~g. Co. 

34 Hurlbut St. 

117 Blucker St. 

618 Delawa re St. 

1771 Union St . . 

Albany, 

Bloversville, 

Kansas City, 

San Francisco, 

Pennsburg, 

380 Ri~er Street Fitchburg 

Center & Cutler Sts.Waukesha, 

30 ·E .Ra ndo'lph St. Chicaso, 

---- Joplin, . 

Haverhill, 

Michel, .Maksik & Feldman, Inc . ...:.:..,..:. __ 

r orwalk, 

Clinton, 

Midwest Ladies'Handbag Co. 402 So. Market St. Chicago, 

Mirro Leather Goods Co. 

Molomut Hand Bags·, Inc. 

Morgan Sp~?cialty Co. 

Morris, Mann & Reilly, InG. 

Mountain Handcrafts Co.Inc. 

Sol Mutterperl, Inc. 

402 S. Iv,arke t St. 

150 Fox Str ee t 

719 S.Los Angeles 

320 W. Adams St. 

Chicago, 

Elmira, 

St.Los Angeles, 

Chicago, 

Bi'l tmore, 

New .Bedford, 

National Ladies Handbags, . Inc: 101 Taylor .St .. ," Springfield, 

Pulaski, 

Manchester, 

Nocona, 

Haverh],ll,. 

So.Norwalk, 

Charles W. Belson & Co. ·Inc. 

New Hampshire Novelty Co. 

Nocona Leather Goods Co. . ' 

Novelty ~ag Co. 

Nu-Mode ~ag Co. 

Paragon Bag Co. Inc. 

Paragon Novelty Bag Co. 

Paramount Bag Co. 

Joseph Fasthoff 

Pat Bags, Inc. 

~etite Novelty Co. 

:Philip Bag Co. 

Phoenix Novelty Co. 

Princess Hand Bag Inc. 

18 Hanover St. 

98 Phoenix Row, 

47-51 Day st. 

,, 

102 S.Wil ~~ & St. 

241 Winter St. 

156-1 ilw~u ;- e Ave. 

Schwenksville, 

Ne\~! burgh, 

Haverhill, 

Chicago, 

310 S. od w St. Richmond, 

9 Little Burnet St. New Brunswick, 

241 Winter St. 

25 Hale St. 

170 :Elm St. 

Haverhill, 

Haverhill, 

. B~idgeport, 

R & K Leather Goods Co.Inc. 291 New Brunswick Ave.Perth Amboy, 

Radio Kimmerl Corp. 

Raymond Mfg. Co. 

Reo Leather Goods Co. 

Resnick Bros. 

Julius Resnick, Inc. 

Robbins & Staufert 

Royal Leather Goods 

Royal Leather Novelty Co. 

C.F.Rumpp & Sons 

Frank A. Rupert 

9811 

421 E. Miner Ave. 

9· Morrill St. 

689 N.Clinton St. 

720 N.Cli n ton St. 

229 S. Market St. 

77 St.Francis St. 

3419· Rutger 3t. 

5th & Cherry Sta~ 

31 Union St. 

Sussex, 

Stockton, 

:)!Jliz<?-beth, 

Syracuse, 

Syracuse; 

. . Chicago, 

N~wark, 

St.Louis, 

Philadelphia, 

Glove.rsville, 

N.Y. 

N.Y. 

Mo. 

c~l. 

Pa. 

Mass. 

Wis. 

Ill. 

Mo. 

Mass. 

Conn. 

Mass. 

Ill. 

I 11. 

N.Y. 

Cal. 

Ill. 

N.C. 

Mass. 

Mass .. 

N.Y. 

N.H. 

Tex. 

Mass. 

Conn. 

Pa. 

N.Y. 

Mass. 

I.ll. 

Va 

N.J. 

Mass. 

Mass. 

Conn. 

N.J. : 

N.J. 

Cal. 

N.J. 

N.Y. 

N.Y. 

I 11. 

N.J. 

Mo. 

Fa. 

N.Y. 

c 

AB 

A 

AB 

ABC 

BCD 

BC 

A 

BCD 

. A 

A. 

BC 

AB 

B 

B 

AB 

ABC 

B 

A 

A 

A 

B 

AB 

A 

A 

A 

A 

A 

A 

ABC 

A 

A 

A 

A 

A 

A 

AB 

A 

A 

A 

BC 

A 

A 

BCD 

B 

M 

11 

II 

II 

II 

II 

II 

11 

II 

II 

II 

II 

II 

M 

11 

II 

II 

II 

II 

11 

11 

11 

11 

11 

II 

II 

" 11 

II 

II 

11 

II 

II 

II 

II 

" II 

II 

" 11 

II 

11 

II 

II 

11 
-153--4 

' 

I· 

OUT OF TOWN LIST CLASSIo·· 

- '-AME ADDRESS CITY STATE F~ICE tion 

RANGE 

Otto W. Schmidt . 

Seger's 

Sel-Wei Mfg. Co. 

Self Style Hand Bag Co. 

Somer Bags 

Spec ia'l ty· Leather Goods Co. 

Springfield Leath.Prod.Co. 

S tamfo.rd-Raymond Mfg. Co. 

Standard Novelty Co. 

Stanley Handbag Co. 

942 MA r ket 3t. San Fr ancisco, 

28 E. Ridgewo o~ Ave.~id ood, 

10 -.. W·a shington 3t.3oston, 

340 M.anhatt an Ave. Union City, 

310 Washington St. Bridgeport, 

64 Beach St. Boston, 

110 N. Main St. Spri ~field, 

820 Mission St. San F~ancisco, 

324 Front St. Pl ainfield, 

N.E.8th & Arch St. PhilAdelphia, 

120 Sa1•:yer St. New Bedford, 

17 N. W. 3rd St. Mi ami, 

Stran~ Leather Goods Co. 

Style Craft Bag Co. 

Style~raft Leather Goods 

Stylecr~tt Leather Goods 

Sunshine Studio 

Co. ~ Scr nton, 

Co. Inc.--- Brin geport, 

131 Sanford Ave. Plainfield, 

Supreme Leather Goods Co. 150 Bay St. Jersey City, 

Texas Ta~ning & Mfg. Co. 

Theobalt & Ehlert Co. 

Three Mountaineers 

The Treasure Chest, Inc. 

Uneeda Belt Co. 

1445 N. 5th St. 

120 Wa ter St. 

United. Bag Co. 91 Federal St. 

Universai Hat Works 

Universal Leather Goods Co. 538 S.Dearborn St. 

Variety Handbag Co. 

Vassar B8 g Co. Inc. 

Vin Clair Mfg. Co. 

Virginia Art Goods Studios 

Josep~ Virzi 

1028 Filbert St. 

149 N. 12th St. 

1308 Cnurch St. 

1220 ·. aple Ave. 

Wm. C. Waugh Co. Inc. 686 Lass. Ave. 

Well ·Mnde Lea. Nov. Co. Inc. 34 J orwich Ave. 

Western Bag Craft 119 E. 23rd St. 

Wilcox Co. 

E. J. Wilkins 

9811 

y 0 C1klill1 ' 

Milwaukee, 

Asheville, 

Asheville, 

Newburgh, 

Lynn, 

Linden, 

Ch icago, 

Phila lil:elphia, 

Stroudsburg, 

Philadelph ia, 

~'n burg, 

Los 1 n5e l e s, 

Cambrid ge, 

Colchester, 

Los Angeles, 

Athol, 

Gloversville, 

. . .. 

C[-1 1. 

N.J. 

tl a ss. 

J. J. 

Conn. 

M<'1.ss. 

Ohio 

Cal. 

N.J. 

Fa. 

Mass. 

Fla. 

Pa. 

Conn. 

N.J. 

.N.J. 

Tex. 

Wis. 

N.C. 

N.C. 

N.y. 

Mass. 

N.J. 

Ill. 

Pa. 

Fa. 

Fa. 

Va. 

C.q l. 

BC 

B 

A 

A 

A 

A 

BCD 

AB 

A 

A 

AB 

A 

ABC 

A 

AE 

AB 

AB 

A 

A 

A 

A 

A 

A 

BC 

A 

BCD 

B 

BCD 

BCD 

Mass A 

Conn. A 

CA.l. BC 

Mass. A 

N.Y. AB 

M 

II 

" 11 

11 

II 

II 

II 

II 

11 

II 

It 

It 

II 

ll 

" 

M 

" " II 

" 

" " 

II 

" 

II 

It 

" 

" 

" 

" " 

" 

" 
J. Abrahams & M. Wilensky 

Wm. Ammerman & Sons 

Anchor Handbag Company 

Joseph Arner 

. Art Novelty Mfg. Co. 

Artistic Bag & Neckwear Co. 

Inc. 

K. Atsales 

Avon Bag Company, Inc. 

Avon Leather Novelty, Inc. 

Barclay Handbag 

Meyer Benn 

Better Bag Company 

Black Mfg. Co. 

S. Bonamo 

Antone Bontos 

Mrs. W. S. Bowen 

Broadway HandbRg 

Buoyant B.ag Company 

Buy Amer·ican Novelty Company 

C. & G. Handbag Company 

T. Caroloni 

Angelos Cassarsis 

F. Ca stillo 

John Celestri 

Century Novelty Corp. · 

Nick Chakoutis 

Phil Cohen 

Columbia· Purse Co~pany 

H. Corman 

S. Costanzo 

P. Cozzolino 

Creative Handbag Company 

John Cretakos 

Customcraft 

Dominick de Gaetano 

John Dignoti 

Liberia di Gregoria 

Igna zio di Silvestre 

Dostal & Company 

Andrew Dougenis 

Edward Elias 

Henry Euler 

Exc ellent Leather Goods 

9811 

-134- . 

EXHIBIT 11 B11 - PART 3. 

CONTRACTORS 

ADDRESS 

34 C9ttage St. 

8 TerrRc e Avenue 

693 Bro adway 

119 Att orney ·st. 

6 E. 27th St . 

1209 :Broadway 

513 Boston St. 

162 Che stnut St. 

9 W. 31st Street 

8 W. 18th St. 

416 W. Front St. 

Smith & 3rd Sts. 

F9ur,th Street 

203 E. l07th St. 

32 Flint St. 

136 W. 22nd St. 

40 W. 28th St. 

15 W. 24th St. 

15 w_. 18th St. 

15~ Spr.ing St. 

2 !V,urray St. 

21 W. lllth St. 

170 8 86th s t • 

~07 S. Jeff ersqn St. 

49 W,:man St. 

775 - ~th Avenue 

15 w . 24th . s t . 

6113-19th Avenue 

2 Lenox Avenue 

3~1 State ~treet 

31 Tnomp son Avenue 

71 .Will i ams Avenue 

40 w . 17th s t • 

7714-l3th Ave. 

199 .venue T 

3217 Broadway 

148 Bay 22nd St. 

218-25 132nd Ave. 

46 W:rrnan St. 

34 E. lOth St. 

404 Fourth Avenue 

36 E . 10th S t . 

Poughkeepsie 

Hasbrouck Ht. 

New York 

New York 

New York 

New York 

· We·st Lynn 

Springfield 

New York 

New York 

Plainfield 

Newburgh 

Pennsburg 

New York 

We.st Lynn 

Weaverville 

New York 

New York 

New York 

New York 

Concord 

West Lynn· 

New York 

Brooklyn 

Orange 

West·Lynn 

New York 

New York 

Brooklyn 

Pleasantville 

New Haven 

L. · I. City 

East Lynn 

New York 

STATE 

N. Y. 

N. J. 

N. y ·. 

. N. y. 

N. y. 

N. Y. 

Mass. 

Mass. 

N. y. 

N. Y. 

N. J. 

N. Y. 

Penna. 

N. Y. 

Mass. 

N. C. 

N. Y. 

N. y. 

N. Y. 

N. Y. 

:S. I. 

Mass. 

N. Y. 

N. Y. 

N. J. 

Mass. 

N. Y. 

N. Y. 

N. y. 

N. Y. 

Conn. 

L .. I • 

Mass. 

N. Y. 

Brooklyn N. Y. 

Brooklyn N. Y. 

Astoria LI N. Y. 

Brooklyn N. Y. 

Springfield Gardens,L.I. 

~nn Mass 

New York 

New York 

New York 

N. y. 

N. Y. 

N. y. 
CONTRACTORS 

NAME 

F. & Leather Goods Co. 

J. Fa.sula 

Fine Make Leather Goods Co. 

F. Fisch 

Louis Fleischman 

Fleischman & Kniberg 

Franklin Bag Company 

Fried & Scheinberg, Inc. 

Fulton Leather Goods Co. 

Philip Gaber 

Laurence G~eta 

Gale Leather Goods 

Gindoff & Grunther 

Goldfarb & Goodstat 

Goldflam Leather Goods Co. 

D. Golia 

H. & B. Novelty 

Charles Hacker 

Hudson Leather Goods Co. 

H. Hunger 

Alphonso Inclima 

Independent Leather Goods 

S. Isaia 

Jason Handbag Company 

Juvenile Comp,qny, Inc. 

K.G.& B.Leather Company 

Kafka & Kleinman 

Samuel Katz 

Xpsiov & Victor 

Kraus-Loeb Handbag Company 

G. Kregler 

Lee Handbag Company 

Levy & Singer 

A. Librick & Sons 

Lowy & Mund 

B. Machlus Leather Goods 

Elizabeth ack 

Made Right Leather Goods Co. 

Majestic Handbag Company 

Manno Bros. 

Phillip Manno 

9811 

-1E'5-

ADDRESS 

233 Po·Jell St. 

1743 -62nd St. 

115 Vi. 30th St. 

224 Livingst one St. 

420 E. 93rd St. 

145 Spring St. 

104 Franklin St. 

45 E . ?.0 t h S t . 

313 Fulton St. 

940 -39th St. 

107 Be,qch St. 

98 Murray St. 

Brooklyn 

Br ook 'n 

New York 

Br ooY.:lyn 

Brook lyn 

New York 

Haverhill 

New York 

:3rook lyn 

Brooklyn 

Yonkers 

Newark 

19 S. lainfield 

37 W. 20th St. 

15 W. 24th St. 

316 St. John St. 

Ave .Fla infield 

New York 

New York 

New Haven 

54 W. 21st St. 

582 Evergreen Ave. 

85 S. BroadwaJ' 

105 S. First St. 

611 Gr and Ave. 

16 Burd Ave. 

l559-79th St. 

37 W. 20th St. 

40 W. 22nd St. 

9 W. 31st St. 

430 Keap St. 

1209 Broadw,qy 

500 Broadway 

1481 Myrtle Ave. 

36 W. 29th St. 

334 Bowery 

209 W. 26th St. 

693 Broadw,qy 

94 5 -71 s t s t . 

110 W. 27th St. 

132 W. 21st St. 

723 Sip Street 

240 -25th s t . 

New York 

'Brooklyn 

Nyack 

Brooklyn 

New Haven 

NyacY.: 

Brooklyn 

New York 

New York 

1Jew York 

Otisville 

:BrooY.: lyn 

New York 

:Brooklyn 

Brooklyn 

Wat erbury 

New York 

New York 

New York 

New York 

Brooklyn . 

New York 

-ew York 

Union City 

Brooklyn 

STATE 

r • Y. 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

l, . Y. 

Ma ss. 

Y. 

N. Y. 

N. Y. 

N. Y. 

N. J. 

N. J. 

N. Y. 

N. Y. 

Conn. 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

Conn . 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

lJ. Y. 

N. Y. 

N. Y. 

N. Y. 

Conn. 

l . Y. 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

N. Y. 

1. Y. 

N. J. 

N. Y. 
CONTRACTORS 

NAME 

Gaper Masgal 

Joe Matra 

Pasquale Messina 

M. ·Me tter 

Mintz & Resnick, Inc. 

Model Bag Company 

Mo-del Novelty Company 

Mohawk Leather Goods Co. 

Lillian Mueller 

M. Madelman 

Nemeth & Adam, Inc. 

Mrs. Collette Owens 

George Padolny 

Paris.ian Handbag Company 

Paroly Bag Company 

J. Pasthoff Luggage Shop 

Peppy 

Alonzo Piombino 

Popul.ar Handbag Company 

-156-

ADDRESS 

235 Brock Avenue 

1562 - 66th St. 

2412 Hof'fman St. 

24 Yi. 30th St. 

5 W. 31-st St. 

30 W. 31st S;t. 

22 W. 21st St. 

20 E. 12th St. 

119 Winfred Ave. 

1209 Broadway 

----------------

CITY 

Bronx 

Brooklyn 

New York 

New Ycrk 

New York 

NeV! Ycrk 

Ne,.7 York 

New York 

Yonkers 

Nev:r York 

Ronkokoma 

Colum.bus 

Ne·-. York 

Phila. 

Nm: York 

52 W. 15th St. 

4Cl N . 4th S t . 

12 l;l. .18th St. 

1561 Milwaukee 

58 W. 25th St. 

Ave. Chicago 

New York 

24117 Trotman. Avenue Bronx 

28 . 25th St. New York 

Amelia Rampolla 114-17 45th Avenue Flushing 

R. M. Reader 85 Main St. DobbsFerry 

Real Art Handbags, Inc. 134 W. 29th St. NeTI York 

Frank Regulsky 45 Newell St. Brocklyn 

M. · Richter 5214 Third Avenue Brooklyn 

Rivoli Manufacturing Co~pany 223 ~est Street New York 

Simon Robbins · 27 Columbus Avenue Spring Valley 

I. Rogal sky · 252 Pentlsylvania Ave. Brooklyn 

M. Rosen Bag Company 3 E. 14th St. Ner; York 

Rosenswein Leather Goods ~3 W. 16th St. New York1 

T. · Rubin 106 E. 19th St. New York 

Russian Hand Made Embr.Works 

S & K. Bag Company 

Salvatore Novelty Company 

0. Schmidt 

Schwab & Rebell 

Sel-Wel Mfg. Co. 

F • . Shapiro 

Shenfield Leather G~ods 

Marcus Sherman 

M. Silver 

Mary Sokoloff 

Spring Valley Leather Goods 

Star Handbag Company 

h~ rles Stein 

Albert F. Stewart 

Louis I. Steinman 

Sun Novelty Company 

9811 

1193 Broadway 

20 E. 30th St. 

141 S. Iviain St. 

37-35 69th St. 

126 W. 46th St. 

New York 

New York 

Phillipsburg 

Wo odside 

New York 

10 N. Washington St Boston 

------------------- Manville 

36 E. lOth St. 

289 Napperhan Ave. 

149 Ashford St. 

2047 E. 4th St. 

34 Myrtle Avenue 

119 W. 23rd St. 

98 Bleecker St. 

l-082 Broad St. 

29 E. 10th St. 

3 5 w. 24th s t . 

New York 

Yonkers 

Brocklyn 

Brooklyn 

Spr. Valley 

New York 

New York 

Newark 

New York 

New York 

STATE 

N. Y. 

N. Y. 

N. Y. 

N. y 

N. y. 

N. y. 

N. y. 

N. Y. 

N. y. 

N. y • 

L. I. 

N. C. 

N. Y. 

Penn. 

N. Y. 

Ill. 

N. y. 

N. Y. 

N. Y. 

L. I. 

N. Y. 

N. Y. 

N. y. 

N. y. 

N. Y. 

N. y. 

N. Y. 

N. y. 

N. y • 

N. Y. 

N. y. 

N. Y. 

N. J. 

L. I. 

N. Y. 

Mass. 

N. J • 

N. Y. 

N. Y. 

N. y. 

N. Y. 

N. Y. 

N. Y. 

N. y. 

N. J. 

U. Y. 

N. y. 
CONTRACTORS 

NAME 

Superb Lea ther G0o ds Co. 

Supe rior Handbag Company 

H. Supnick 

Teddy Maiden Handbag Co., 

Samuel Te itelbaum 

~hr ee Mountaineers 

Tip Top Handbag, Inc. 

Tivoli Handbag 

M. Triesti 

Trio Leather Goods Co, 

Upright Leather Goods Co. 

Vienna ]ag Company 

Martina Vayrouz 

Joe Vilaseca 

Warschauer Novelty Co. 

Wonder Bag Company 

M. Zaro 

z. Zwillenberg 

9811 

- 157-

ADDRESS 

1613 E. N.Y. Ave 

120 W. 30th St . 

34 w. 27th St. 

34 Wall St . 

48 W. 25th St. 

28 W. 27th St. 

1523 E. 172nd St. 

15 W. 24th St. 

36 E. l i)th St. 

115 W. 23rd St. 

34 W. 46th St. 

137 Pine St. 

502 J . 147 th St. 

10 W. 33rd St. 

54 E. 11th St. 

118 E. 28th St. 

110 W. 27th St . 

CITY 

J3rookl 'i'Il 

Ne',v Yor k 

New Yo r k 

Norwal k 

New York 

Asheville 

New York 

New York 

New Yor k 

New York 

New Yor k 

New York 

S. Pla infi eld 

~! VT York 

New York 

N~w York 

New York 

Nev; York 

STATE 

N. Y. 

N. y . 

N. y . 

Conn. 

N. y. 

N. C. 

N. Yf 

N. y. 

N. Y. 

N. Y. 

N. Y. 

N. y. 

n. J. 

N. Y. 

N. Y. 

N. y. 

N. Y. 

N. y. 
-158-

' ' NeTis 3u11etins issued by the Code Authority 

9811 
-1 :)~

EXdiBIT 11 C II 

CODE . AUTliORI TY 

LADIES' l!Al"D:O.AG Ill]]) TSTRY 

347 Fifth Avenue 

October 23, 1934 

B U L .L E1lN 

The Ne11s Bulletin is being i ssued by t ho Co de Authori t 3r of t he 

Ladies 1 Handbag Industry to keep al membe rs of t ·1e indust~r 

posted and to c~e..te on lill ne, s, uc 'l e.s officia l ruling s, 

inter:9 retations, ets. In acl.d.ition, contribu tions from membe rs 

of t he industry are \: elcomeC. a.nd r·il). be g iven t i1 e r> i dest ~o ublicity, 

if of gen e ral interest. Your name ni 11 be ·i thheld if :ro-.J. so r equest. 

Uge the columns of t he N:B,'WS LlULLEr;_lil: to a.s~~ g-...l.esti on s, discuss, 

criticize or suggest. The staff of t h e Co cle Au.t h ori t~r i s El rwys 

at y our service , and a cor ~l i nvita tion i s e~tended to all members 

o.- the industr-.t to stop in and ge t c.cqu['.inted. 

* * * 

TRADE PRACTICE COl\·J'LAL.TT S COl. J..: ITTE : The Tra de Practice Complai n ts CoMmittee appointed by t he Code ~:o ri t •.r has b e en approved by t he Ao.Jnini stra -

tor, and is now ready to f1.mction . A trade ·:w a ctice comn laint ref e rs to 

a complaint alleging viola tion of anzr ])rovi sion of a co de othe r t han t he 

labor p rovisions. Comp laints b-r meMbe·::-s of t l1e ~_us ry egai nst othe r 

members of the industr;r or by any ~Je rson agai nst D.P. membe r of the inc1.ustry for vi olation of any of t he fair tre.de 71r a cti ce r:u1.es of t l1e co de , 

may be :filed Pith t h e Co de Authori ~r . In all case s, d10 r e t he compla i nant 

states that he does not lil i sh his name to oe r eveal ed, ni s Fishe s must be 

respec ted. Under separat e cover the re is being mai l ed a complete outline 

of the functions and vwrkings of t he Tra de P ractice Comp l c:'..ints Conuni tt ee . 

ADVERT! SING EXPENSES: A member re questecl a ruling on the fo llo'l'7ing 

situation: 11We rrould like to fi nd out exn c tly l7hat course of a ction 

to follov1 in regard to inse rting an a.dverti sement i n t he Ch ristma s 

Catalog sponsored by a resident b~;ri ng off ice. Tnis ~d ng 

is to be paid for by us directly to e.n a dvertising se rvice compa ny . 

This concern handles the entire ph;:rsica l mc-.ke- up of t he c.: talog for 

the resident buying office. The Stlm t l1nt n e a re to pa~r theM is to 

cover only our part of the cost of t he COffiTj O sti tio , < rt 11ork 

9811 
. -160-

uhotogrephs and gngra.vings necessary to illustrate our merch.?ncHse. 11 

The ruling of the Cooe Authority follows! ·· 

11 Since the above office is a ·9uyer of your TJroduct, ana a lso because 

they r euresent retailers who buy your uroduct directly or indirectly, 

it woulc, be considered a violation of the Code if you we.,.,e to contribute or nay for any advertising sponsored by this resident buying office, 

or their aunointed a0 vertising agency. 11 

ADVERTISrm: In the uast it has been customary for nrinters to solicit 

m::.nufa cturer~ for the nurnose of obtaining advertisin::; for anuroTJriations 

or allowances foT. the nrinting of a holiday catc-t log for retailers in which 

the goods of the manufacturer are offered for sale ~t r 8tail thru the 

medium of the reta ilers' talog. This form of advertising definitely 

comes under Section 12 of Arti-cle VIII of the Code of ]'air CoiTll'Jetition, 

and~·. the payment for such advertising by a manufacturer would be considered a violation of the Code. 

* * ·I' 

RETU11.NS : The following letter add ressed to P.. member of the industry, 

is of considerable interest and sho'ls the attitude of the 1"RA in suunort 

of our Code provisions: 

"Your letter of October 12 ad0 ressed to :·1r. 'tichberg, in which you cite 

the refusal of a handb.ag <I1B.nufa cturer to a ccent the re~urn of faulty 

merchandise 1.1vi th the inference that the code urohibi ts it, has been referred to me for attention ann reply. Article VIII, Section 13 of the 

Code reads as follows: 

' No member of the industry shall accent the return of any 

merchandise shinDed to a nurchc:1ser , nor allow credit therefor, nor exchange merchandise, after the merchandise ha s 

been in the nossession of the nurchaser for more tlliLn seven 

days, where the agreement of s.?.le hE1s been fully p~rforoed 

by such member. 1 

This n rovision was included in ~1e Code to remedy a n abuse of the return goods nractice which had gr. own in the indus try. ·1any merchants 

had formed the habit of leEving merchandise on their shelves or in 

their warehouses, and when the season was over and they found the merchandise did not have n r eady sale they returned it, asking the manuf a cturer for credit. Likewise, many merchants nermitted the merchandise 

to become damaged in storage, -and after weeks and even months they asked 

the manufacturer to accept the return of oerchandise which had become 

damaged through no f ault of the ma nufacturer. It was felt in anuroving 

the code tha t seven days was sufficient time for a merchant t9 scrutinize 

the merchandise, and tha t by putting this limit on its return an unfair 

trade nractice would be eliminated. 

There is a l so a nrovision in Article VIII, Section 4 of the Code which 

prohibits a ;nember of the indus try from branding or marking or nacking 

any goods in any manner which is intended to or ooes mislead purchasers 

981 1 
-151-

~ith r esuec t to the brand , g r ade, ouality, nL~n tit , origin, 

etc . , no if the me rc:-...-=>ncUse of e !lEt nuf :::~ cturc r i"' fm.mo t o b e 

com1non snli t lea t J.1e::r len it ~ ·oeen br<-' nded or sold [l s 

lea ther of a higher g r Fde, you a re not only nrivi1egPd to 

r e turn it but it is your dut · to n ;nort the firm r:l<" nuf:: cturi ng it to t he Cocie Authority El S a v i ol- tor of the Code . Asi c~ e 

from t h i s urotection, it ''Cl s not intended in El "'Y'Jrov ing the 

Code thct t it woul d nreclude the r r t ur11 of merche nchse wl.1ich 

was faulty in manufc::cture , even though the seven da y nex·ioCI 

had elansed . 

I believe you ill f i nd t~e Code Authority of the Ladies ' 

liandbab Code very sym·•at:1etic to your ryrob l el:l , 2nl1 t ney ·rrill 

no doubt sugbest the Droner Action fo r you to t nke . 11 

ne ) Leigb E. Ore 

Assistant De~u y min st tor 

T ~ ~: I t i s a violBti on of t~e Cod e to sell on t erms in 

eYcess of z...j 1n eom. F i::r c: t of t :.1e ~ont::!. clE tinr-: fo:r g oods 

sl:i lJ-·>ed Pfter the t·,renty-fifth of the n reced ing mont'h is in 

excess of 3 /10 eom. If you ,::r ant f irs t of the r:10nth CI F·ting, 

you a re viola ti ng t he Code for t h e LRcU es ' -1<-l ~" ,:; L1C1us t r y. 

* * -1: 

ASS~ss rr 'TS: Your FJ tte ntion i s cEJ lle0 to t 11 e f r·ct thElt 

sales Pssessment s '~ e non cue Rnc! YJC'. ya b l e for Senter1'ber. In 

n. ccordRnce Vll i th ··l?.A rulin~~ ~ assessr.1ents a "' e bc:tseo on sa l es 

fro~ }~ ch 25, 1934, t be effe ctive e of e code. If you 

have not lr c~ y done RO, 11 leP s e inc l u c1e s a l es fi gures from 

I-.~2 rcl1 ~6 : !a rch 31 with y our nex t l n.b e l or'i er. 

* * >,( 

LA3'E'LS: Since July . 19 ~4 ~1 e rla t e -r-::.A r. s b ecc·.me effecti v e in t :1.e in~ustry a g r ,q nfl totc.. l of 13 , "'4:1, 8011 l 2bels 

have been issued un to Emc

1 including Octo-J e'· 19 , 193L: . 

'qegulP r LA-J e 1 ~ 

Stock on -,_ nd 

Retailers 

* ~ * 

.: , Ob9 , Or') 

5~·· , 001) 

'2~A , sno 

LABEL DI SPOSITTO.i.1 -q-co-::_!JS : The A l <1 b e l signifi es t h c::1 t E1ll 

l adies ' handbags, uocke tbooks or nurs e r oea r i ns such l e be l s 

nre manufactured uncier Cod e cond itions r1 s t o wages , hour R, 

tra.de -practices, etc. '1-r;.le entire -rmruose of the :'1P.A l <· b e l 

i s defeeted if no control i s mn.intaineu. The Label Disnosition Recorc

1 i s designecl so th;:; t you , the l eg i ti r:~c te r:lF~ nu

f a cturer, C8 n be a ssureo t h£lt t :1e "chiseler" will not o·J t a in 

l abels 1v i thout comTJlying vri th a ll lHOvisions of t he Code . 

9811 
-162-

It is i r.me r [-l tiv e thci t t h e s e recorc

1 s b e submitte:.' <as. t !:1e La'yel 

Division cann ot issue l n-oe ls unles~ the instructions on ti1e 

Label Order Fi:- e full y comrylie ct ,_.,i th. Tnless Lc;bel Disnosi- -

tion Record s co :mletely filleo out · a cc·omoany · every l abel 

order, 1e Code Authority c n.nnot effectively nrotect your interes ts. 

·* * * 

COiflPLIA] CF DIVISI T - - S?A.TISTICS ( Sentember 

~':umber of Investigations J0.C'l de 

··Ton-Cornol i;:-,nce C0 ses Pencling 

:·Ton-Comryliance Cn ses Clo ~e d 

:::testitution 

=·Tut:J.oer of fi~:- ~ 

ih.1r.1ber of incH viclwl Emnl oyePs 

Total Amount Da i d 

AnryroximP~te amount ryen0-

11 9! . 5;-; 

· ing 8, 000·. 0n 

-u.r.1oer of >!anuf<' c turers - I'\· . , 

:'-!umbe r of L~ ontr ctors 

A11uroxim<· t e lTumber of rrorke rs 

~mnlo e0 in the Tnftustry 

* . * * 

r- r\ 

; l_, , 19 4) 

567 

58 

105 

t.:J: 3 

8lt.1: 

~5 

17~ 

~5 ' 800 

DOUJL'T' s-r-r : ":i.e uests ·; e come i~oril members reouesting 

nermission to emnloy fl d ouole shift of ·vork e:rs • . 1e Cocle 

Authority s rule0 that in orner to .work t wo shifts , it 

involves t~e o11 era tiori of R f a ctory fro ~ si: · F ,m, to t welve 

midnight . This is not a mecha n i zed indus try in --,hich a 

double shift r e lies chiefly on the "J erE~ tion of machinery. 

It is almost entirely t able 1;rork , <mc1 r eauiJ·es close anplication of the -r or~.: er to his ~r or , and ,-r11en nerformed unC: er 

artificial light, it involv e s P nhysica l stra in esnecially 

on the eyes of the workers. A dou-bl e shift affo:rrJ s a n onportuni ty to workers wl'lo ma y •rrorl<: during tlle dfl.ytime in 

one f a ctory to aualify for the ni ght shift in nother, in 

viol-'-l tion of t h e Code. The Code Authority feels thfl t ma nuf ncturers sh ould be a bl e to mElke nrovision t'o i ncreas e 

their nror. uction during the ei ~h t hours ne:rmi tte rl oy t :1e 

Code thru the Pdc~ition of s-:Jc-1ce a n11 ma chine ry. 

* * .j: 

PAYROLL ?..FPO?.TS! Payroll l.eT)ort Shee t s £ ~1 e :)( en furnished 

to E~ll ma nufCi cturers in 'the inc1ustry. ~e cti cm (c) of t!1e 

Code, a uthorized the 'CoCi e Authority to obt i'n information 

a nd renorts re ui~e~ for Pdmini~trflti n o{ t h e Co~e . The 

Ladie . ' -:-~ nC1b ag Inc' try ha s never hF·r t!~Ue vi tal stfl tis tics 

El nd 'f a ilure to submit ·payroli re·oor.ts ~eve:rely hAndicaT)s the 

Code Authority in its ender-·vor to ma inta in u'Y)-to-o : te nnd 

a ccurat e sta tistics of the Industry. Your ea rnes t cooT)eration 

is reauested. 

'II ... * 

9811 
-1 0'_7-

CONTRACTORS: Before glvlng out ~ork to a contractor, make certain 

that he has signed the Contractors 1 Com"0lianct3 Form, as no labels 

will be issued to be usecl ~r cont1·a ctors WflO have not sig ned t hi s 

form. 

ate * * 

CONTRACTORS' AGREELiENT: The National Industrial H.ec ove ry Boe.rd has 

approved a sta!ldard form of 11Contra.ctors 1 Ag r eemen t 11 betr.reen memb e rs 

of the ladies' handbag industry and co.ntractors nhereby contra ctors 

signing the agreement ple c1ge them selves to "comply with all pro vi sions of the code of fair compe ti tion 11 .for t he ind-:1.stry. .In sig ning 

the approved agreement, contra ctors a re pleciged to sign a "Contractors' 

Compliance Form" i ssued r the inclustr;v 1 s Cod.e Aut hority. (Copies of 

this agreement will be available v e r y shortJ.y .) 

* * * 

THIE BOOKS: TDe Compliance Division requires all payroll 

records to be kept in a separate time book , nd all entries 

to be mao.e in ink. 

TRADE PRACTICE Cm.f?LAI FTS COi 1I PfT~!Z : The Tratce Pra ctice Comp laints 

Committee is empoTiered to hear all comp laints a rising out of violations of the trade practice rules of the Code of Fair Comnetition 

for the Ladies' Hand.b~g Indust~,r . I n ord.e r that each membe~ of t :1e 

industry may familio.rize :1imself \7i t h t !:le duties nnd functions of 

this commi tt eo , o are sending hereTii th a copy of t he rules governing the procedure of t h e Trade Practice Com:olaints Co r.~m i ttee. 

* * * 

HANDBAG FRAME D~SIGlT REGI STRATIOE: The follou ing notice has been received from the Code Authori t y of t h e Handbag Frame Manufacturing 

Industry: 

9811 

11 'Je take pleasur~ in annou...··1eing t he designa tion of 

t he Design Registration Bur eau, op ere>. t ed und.er the 

auspices of the Ih1ode Island School of Design a nd 

located at Providence , R.I., a s the impa rtial and 

disinterested agency to be used r members of this 

Industry f0r the reg i stration of origina l frame 

designs. 

The Code Authori t;;r has desig na t ed t h is Bureau 

pursuant to the p rovisions of Article IX of t he 

Supplementary Code of Fair Comp etiti on for t h is 

Industry, and thi s designation has r e ceived t h e 

approval of the National Recove r y Adr.1inistrc:.tion. 

Registration of original frame designs commenced 

on Monday, October 22 , 1934 . Pro tection of r egi stered 

designs exoire s six months from t he date of reg istration. 
-164-

Ue bel ieve that desi gn r egistra tion in thi s Indust~J will uork 

to the disti nct advantage of your membe r s a s 11ell as our onn, 

anc. qe earnestly solicit your full coopera tion in the prevention of the pira cy of r egist e r ed de signs." 

The Code Director s will be gl e..d to unsner any que·stions regarding 

t he eff e ct of such r egistra ti on on- t he handbag indust~r. 

* * * 

The Co de Directors can help you in cases .7h en 

Your custome r s return goods aft er seven day s. 

Your customers pay on t erms othe r t han t he Code terms, 

3/10 eom. 

Your customers insist that you pay for their adv~rtising. 

When you a re a'sked to give anything of va lue for the purpose 

of influencing or rewarding the action of any employee, 

CONSULT THE CODE DIRECTORS 

* * * 

DISTRESSED 1'.-l:ERCH.A.liDISF.: Yle de sire to call your attention to Trade 

Pra ctice Rul e 15, Article VIII. 

"No member of the industry shall dispose of distressed merchandise excep t upon prior notice to the Code Authority, along 

uith such information as t he Code Authority and the Administrator may p rescribe. General fall competitive items shall not 

be sold as distressed merchandise urior to Decenber 26, general 

sp ring coopetitive items shall not be sold as distressed merchandise prior to Mother' s Day, and general summer competitive 

i tems shall not be sold as distressed merchandise prior to 

July 4. Subject to vie by the Administrator, the Code Aut hority may pe rmit the sa le of me rchandise at periods other 

t han t hose herein e stabli shed. 11 

This p rovision ui ll be strictly enforced. 

Temp t a tion is grea te st a t this time of the Yea r to manufacture additiona l quant ities to take care of "la st minute Christmas orders". 

These additional quantities fr equently p rove to be the ~onge that 

abso r b s a ll t he p r ofits of t he sea son. 

Try t o make you r perc entage of close-outs a t the end of this season 

the smal lest you have ever had, not forgetting that goods manufacture 

to sell at $21.35, if sold for $15. 00 a dozen, means a drop of 32t~· 

Can you afford to t ake it? 

* * * 

Hm:WJORK: The r e will be a hearing in lfashington on Tuesday, November 

20 , 1934 at 10: 00 A. M. Room 128, Willard Hotel, to consider the 

pr oposed int erpr et ation and amendment proposal of the Pleating, 

Stitchi ng and Bonna z and Hand Embroi dery Industr;}'• 

9811 
L 

-165-

In accordance with t h e int e rpre t a tion p roposed by t he a bove i nclustry , 

home'>'Tork on hand-beading , hc;,nd-croche t i ng and hand 0.1ntm:rl.de r ';ii 11 

be prohibited.. Since this char:ge migh t seriou sl3r affect y our 

t~ s~ y ou may lli sh to a ttend this hea ring . If y ou desire to sp eak 

against the prop osa l, plea se l e t us kno11 , so tha t Ti e may r egi st e r 

your name with the Administra tor in cl a.r ~e of t he hea ring . I f you 

cannot b e p re sent in person, writ e or t elegra:!h to Mr. r.; . D. Vinc ent , 

Acting Deputy Admini str a tor in char ge , expre ssing y our vie\7 s. 

* * * 

Members of t h e i ndustry are r emi nded. t hat t he workers in 

their office , stock room and shipping department come unde r 

the \7ag e and h our provisi ons of the Code, t he same a s f a ctory 

workers. 

Article III, Section 2, p rovides •.• "No p erson employ ed 

in shipping , clerical, or office rrork , ·,mle s s he is employe d 

in a manag eri a l or executive capacity a nd ea r n s not le s s t ha n 

thirty- f ive dolla rs ($35 . 00) p er week , s}J.all b e per nitt ed to 

work in excess of forty ( 40) h o•.1rs ;:) e r 1:eek a v e r ag e d ove r a ny 

one ( 1) month l) e riod. n 

COMPLIAl\7CE DIVI SI 011 - STATISTI CS (Octobe r ;)J. , 934 ) 

Numb e r of Investigation s I!a.o e 

Non-Compliance Cases Pending 

Non-Compliance Ca se s Cl o sed 

Restitution 

.l'Jumber of firms 

Number of Individual EmDloirees - '-' 

Total Amount Pc:d d $12 , 0 24 . 22 

Approxi mate runouBt 

pending $10, 200 . 00 

Numb e r of Manuf a cturers 

Numb e r of Cont r a ctor s 

Approxi mate Number of i7orke rs 

Emp loyed. i n t he I ndust ry 

* * * 

807 

49 

1 30 

47 

9Cl 

325 

173 

1 5 , 800 

SPECIAL SALES: A certa in r e t a ile r noF. in the mar ke t is s eek1ng to 

obtain a special con cessi on of a singl e a_1.:tanti ty' of bags, so h e put 

it to a manufacturer i n t : is ma1 ne r: 

11All I want is six doz en of your r eg'.ll o.r ne':'T f a ll 5 oocls e.t a sp ecial 

p rice for a. sa le." 

Aside from the f a ct t h&.t it def ini te r rui ns t he s a l e of your neiT 

fall styles in that particu l a r city or .cities, it creo.t es a r esentment against you by all other manufac tur e1·s rrllo may be fo rce d to 

follow you and accede to t h e demaflcl.s of t his buy·e r . It is a n old 
-166-

trick, and it is obvious that by g etting six dozen bags at a special 

price from ten or more mAnufacturers, this buye r has succeeded in 

making h is full purchases from 20% to 30% less than the regular 

prices. Do not lend yourself to this ·old and v/Orn out method of 

chiseling. 

~ere are five good reasons Tihy you should not : 

You are creating unfair compe tition for your customers who 

ill g ood faith have boU£ht the same goods from you at regular 

prj 0e s. 

You a re destroying your complete line in uhich you made a sub-

'~ :lnt l inve stment. 

A "">pe0iA.l sale" ·of only six doz en bags is just as quickly 

ln1c 7!1 t u other buyers as it is to other manufacturers. 

You have clestroyed the corf.idencc in t he very buyer to uhom 

y~ u. ha•.re £ranted this 11 3p:::. ,,inl hi.\? 11 • The natural inference is 

~ .. ) t if y ou did it for hi;a ~ 3rou nould do it for others. 

IJ:l. :-l·efore, your line is not de sirab l~ a t regular prices fo r regular selling. 

The most important r eason i s tha t you did not allow for such 

11 special buys 11 in fi gu:-i ng the c9st of these bags. 

11PROTECT YOUR PROFITS n 

B1PORTED IviERCF,ANDI SE: The follon ing letter Tias received from the 

N.R.A. : 

lfSUBJECT: Status of Rel a tionship betrreen Ladies' 

Handbag Code and Imp orting Tra de Code . 

A question of jurisdiction, assessment, etc ., has arisen betrreen 

the t wo above mentioned codes. There are in t~1i s picture three distinct groups, namely: (1) the strictl;)' manufacturer of ladies 1 handbags; (2) the manufacturer lilho also imp orts ladies' handbags; (3) the 

strictly importer of ladies' handbags. 

The first shall ope r a te entirely under the provisions of the 

code f or the ladies' handbag industry a nd she.ll pa . to this industry 

all assessments. The second class shall operate under the code gove 

i ng the major part of their busi ness. for examule : if a manufacturer 

does $100 ,000 worth of business~ A:t~r per cent of which he manufactur 

h imself, importing the othe r f orty per c ent, he shall be governed by 

the cod.e for the ladies' handb-9.g indust ry and shall pay assessments 

to sa.i d Obde .A.uthori ty on t h e $100: 000 figure . He is not subject to 

an ~sse ssment of t h e Importing Trace Code ho rity, because such 

Crrle .A,J.thori t y does not have a n exemp tion und.er X- 3 6 . 'Jlnere a manu• 

f[·Ci:n:--·e r of l a dies' handbag s i mpo rts s ome of t he integral parts of the 

cc:nplete b ag and is, \7e might sa2r, p rimarily an "assembler" , he is 

subject to t he Ladies' Handbag Code entirely. The third is an import 

strictly, and is subject only to the code for the Importing Trade . n 

9811 
* * * 

PAYROLL REPORTS: Payroll Report Sheets have been furnished to all 

manufacturers in the industr~. Section 8 (c) of the Code, authorized 

the Cod.e Authority to ohtain information and reports required for administration of the Code. The Lac3.ies 1 !1andbag Industry has never had 

true vital statistics and failure to submit payroll reports severely 

handicaps the Code Authority in its endeavor to maintain up-to-date 

and accur~te statistics of the Industry. Your earnest cooperation is 

requested. 

• * * 

TERMS: It is a violation of the Code to sell on terms in excess of 

3/10 eom. First of .the month dating for goods shipped after the 

twenty-~ifth · of the previous month is in excess of 3/10 eom. If you 

grant first of the month dating you e.re violating the Code for the 

Ladies' Handbag Industry. 

* * * 

ASSESSlv1ENTS: Your attention is called to the fact that sales assessments are now due and payable for October. In accordance ~ith ~ 

ruling, assessments are ba sed on sales from March 26., 1934, the effective date of the code. If you have not already done so, please 

include sales figures from March 26-March 31 with your aext l abel 

order. 

JULY 

AUGUST 

SEPTEMBER 

OCTOBER 

GRA.l\i'D TOTAL 

L A B E L S A L E S 

TOTAL 

2,154,000 

3, 529, 5GO 

3,487, 000 

5,0 0 

13,215,500 

\7EEKLY AVERAGE 

512,857 

741,109 

940,806 

879, 348 

DAILY AVERAGE 

102,571 

148,202 

188,161 

175,869 

GEOGRAPHIC.AL DISTRIBUTION 

(AS OF SEPTEMBER 30, 1934) 

LOCATION 

Ne\1 England 

Middle Atlantic (not including lYYC) 

New York City 

Middle West 

South 

Pacific Coast 

* * * 

lABELS I SSUED 

2, 959' 500 

3,756,200 

3,594,3CO 

436,875 

129,000 

66,000 

10,941,875 

THE LABEL DJ SPOSI TI01J RECORD IS .A.DVAHTAGEOUS 

TO THE INDUSTRY 

PER CENT 

27.0 

34.4 

32.8 

4.0 

1.2 

.6 

100.0 

There are many manufacturers who have alread,y adopted the Label Dis9811 
-168-

position Record as one of their: 0\7n records because of its value to 

them as a statistical record of production. Some of these manufacturers never had such a record befo.re, never kne\7 what their production 

actually nas, and had no means o'f comparing their present production ' \7i th that 0f _ any past period. 

Some manufacturers depended upon the cutting foreman to record the 

production on some scrap of paper or other informal record. Production figures thus dep~ nded upon the foreman's accuracJr, . his memory, 

his arithmetic, or. his veracity. No~ that there must be a label for 

each handbag, these manufacturers have accurate figures to which the;,r 

can refer at any time. 

Some manufacturers use .the Label Disposition ;Re cord. as p. physical 

inventory control over their slq:s and as a method of preventing payroll uaddine. The shop i 9-, charge<i \7~ th the qunnt'i ty ~t, as per the 

Label Disposition neco~d, and credited wi th t he quantity completed 

as per the payrolf sheets or ac tUa.l _c ~1a es . to the fi~i shed goods 

stockroom. The difference is t he inven tory of goods in urocess and 

this is checked weekly or -monthly by a physical count. The inventory 

of goods in process is also used by some manu£acturers on their monthly financial ·statement to give t hem a more. accur~te picture of their 

operations. 

Man,)r manufacturers Tiho previously had ina dequate cost 'records are now 

determining their labor costs by dividing t he 11eekly apyroll amounts 

by the p roduction per Label Dispositior- Record. :~hes~ are but a feu 

of the advantages. No doubt there are many more. 

.., 

9811 

, . 

.. 

o: 

:n 
I 

VOL. I I, No. 3 

-169• . . 

EXHI:&IT "C" 

CODE AUTHORITY · · 

LADIES' HANDBAG I NDUSTRY 

347 Fifth Avenue 

Nevr York 

NEWS BULLETHT DECEMBER 5, 1934 

WJ.R. RI CHBERG 1 S VIE\iS ON A PERMANENT N. R. A. PROGRA : 11 In t he first 

place, I believe that there is a demonstra ted soundne ss in t he fixing of 

minimum wag€s and maximum hours for each trade and industry for t he 

purpose of preventing the ~orst forms of unfair compe tition in the 

overworking and underpaying of em~loyees, If t hese re quirements are 

fixed ' by co'mmon agreement, i'f they are fl exi ble enough· to fit actual 

conditions, if they are not the la.st word, but l eft subject to improvement by collective bargc:dning , they should ' protect both employers· and 

employees and advc:mce the public int erest. In the · same way by ccmmon 

consent the intolerable evil of child labor'· should be outl awed from trade 

and industry. 

11 In the second pla ce, admittedly dishonest business- pra ctices should 

be prescribed. But in the twilight zone between dishonesty and legitimate 

competition, trade and industry should s eek first to establish · an 

accepted st ande1 rd of unf ai rness befor e 'before writing manda tory r equirements in a cote . Enforcemcmt must fat.l wher e ther e is no gener a l a.gr eement that a l aw should be enforced; We must '!j'.'ait in pa.tience for the 

development of a custom tha t has a t ta i ne d Rlmost the forc e of l aw before 

we ask to write it into law and to comvc l dissent ers to obey it. 

"In the third plcce , statisticC'l i nformat ion, accur a t e c:md camprehensive, is necessary for e conomic s ecuritv in an industri al civilization. Business should not grope its way ahead i n f ogs of uncertainty. 

It is in the common intere st t ha t exa.ct ·r eports of production, prices, 

wages, employment, and such fundament al knowl edge of e conomi c conditi ons, 

should be available to all vho have the desire and intelligence to chart 

the course of com;ne rce and finance a.ccor ding to the ever shifting balar.ce 

of supply and demand. 

"Finclly, to what extent should we r ely up·on and insur e the fr eedom 

of agreement among organizations of emnloyers and employe e s to promote 

their separate and common economic intere sts." 

* * * 

The Code Authority must insist that your pPyroll r epe rts, and label 

disposition records arE: fill ed · out and r e turned to us not later than the 

tenth day of ea.ch month. If you do your part, the sta tistics for the 

industry at the end of· the fiscal year v:ill be invaluable for every 

member of the industry. 

-------------------------------------------------

9811 

LABELS: In order to f acilitate thB examination of bags for lab el 
-170-

requirements, w8 have been requested BY l2rge retail distributors to 

instruct the manufacturers to place the lebels in a uniform position in 

the bag. The Code Authority -has ruled that in every case ~ossible, the 

label shall be inserted in the left-hand side of the mirror pocket with 

the numerals showing. 

* * * 

FALSE ADVERTISING: Some manufacturers have been manufacturing 

bags of seal split and inserting cards in each bag stating that they 

:are ·ureal seal" or "genuine seal." A fe,n large retailers have recently 

· inserted c>dvertisements on these bags also calling them "real 'seal" or 

"genuine seal". The Code Authority has stopped this practice as it is 

a violation of Section'4, A~ticle VIII of the Code, and also, 'as it is 

prohibited by a ruling of the :B,ederal TrC~ de CC'mmissi9.n on a similar 

case. 

On February 2, 1934, the Feder2.l Trade Commission ruled "That in 

c0nnection with the sale, off ering for sale~ or distribution in interstate com:nerce and the District of Columbia of h~dbags, suit cases 

and other luggage or other products made from the under layers of 

sealskin known as "Split Se~l'', cePse and desist from designating and 

describing the same ~s "Seal" or "Genuine Ser1 l" unless the vrord "Seal" 

is modified by the word nsplit" in letters equally conspicuous· or other 

expression clearly and conspicuously designati!'].g that the material is 

an under layer of sealskin." The Ccd e Auth6ri ty will strictly enforce 

this provision of the. code. 

* * * 

TERMS: It is a violation of the Code to sell on terms in excess of 

3/10 eorn. First of the month dating for 6Qods shipped after the twentyfifth. of the previous month is in excess of 3/10 eom. If you grant 

first of the month dating you are violf!ting the Code for the Ladies' 

Handbag Industrv. 

FURTHER ADVANTA0ES OF LABEL DISPOSITION RECORD: Where contractors 

are used, the number of handbags in work at contractors is easily 

ascertained by some manufacturers thru the use of the Label Disposition 

Record. This is done by charging the contractors with the production, 

per Labe l Disposition .... ecord, and cr editing them with the finished goods 

per r eceiving r ecord or purchase book. The difference r epresents handbags in work at contrac t ors and the fluctuation of this figure is 

carefully watched. This in-process inventory at contractors is similarl 

used on the monthly financial stc>tements. This control may also be 

valuable in ~rev nting padding of bills by contre.ctors. 

Some manufacturers f eel that they nov:r have a better control of 

overshipmen.ts and undershipments by contractors thru the numerical 

advantage afforded by the Label Disposition Record. 

The Label Disposition :Record has e.l so been found to be valuable 

because it gives the nufa~turer a record to which he can refer, either 

to r efr esh his memory, or to detect clerical errors such as forgetting 

to charge a contractor ith goods. 

9811 * * * 
- 171-

COMPLIAlTCE DIVI SI ON - STATI STICS (November 30, 1934) 

I nvest i gat i ons: 

Numb er Pr evi ousl y Renorted 

Number Made During Novenber 

Numbe r Non-Compliance Cases Pending 

Numbe r Cl os ed During Novembe r 

Re stitut i on: 

Numb er of Firms 

Total 

Numb er of Individual Empl oyees 

Total Amount Paid 

Approxi ma te AL1ount PendinG 

$13 , 347. 39 

$10 , 000 , 00 

* * * 

REGULAR LABEL SALES 

807 

274 

72 

90 

53 

934 

1081 

TOTAL VffiEKLY AVERAGE DAILY 

AVERAGE 

J UNE 

JULY 

AUGUST 

SEPTEMBER 

OCTOBER 

NOVEMBER 

TOTAL REGULAR LABELS 

1,220 , 000 

' 2 ~ 154 0.00 

529, 500 

3, 487, 000 

4 , 045, 000 

4, 310 , 000 

18,745 , 000 

428 , 571 

512, 857 

741,109 

940 , 806 

879 , 348 

1,023 , 080 

TOTAL STI CKER LABELS ( Mfr s, and tie t a i1 er s) ••• 783 ,800 

GRAND TOTAL •..•................. · ... ·. . . . . . 1:9, 528; BOO 

LCCkri ON 

New England 

* * * 

GEOGM PHICAl DISTFTBUTI ON 

(es of OCTOJ?'.E:rt 31 , 1934) 

i·1ianufac t ur er s Only 

LABELS ISSUED 

Middle Atl antic (not cludi ~g NYC ) 

New Yo rk Ci ty 

3, 856 ,125 

5, 273 , 200 

4 , 930 , 300 

Middle West 

Sou t h 

Paeific Coa st 

9811 

* * 

624 , 375 

215 , 000 

99 , 500 

14,989 ,500 

85, 714 

102,571 

1 48 , 202 

188,161 

1'75 , 869 

204 , 616 

PERCENT 

25.7 

35.1 

32. 9 

4.2 

1. 4 

.7 

100 . 0 
"-172-

CHILD LABOE: One of the most important prov1s1ons in the code is 

the prohibition against employment of minors belov1 the e~ge of sixteen. 

The Code Authority tekes pride in the f?ct that the industry is unusually 

free from violations of this ohar21cter and the Administration has commented upon this favorably, 

* * * 

TIME CARDS: ·rime cards must not be destroyed. They must be available for inspection by the Code Authority investigators. Failure to 

preserve and submit time c2rds will be considered evidence of violation 

of the Code nrovisions regarding hours and wages. 

* * * 

MANUFACTURERS OF BRAIDED BAcrS: Under Executive Order of June 6, 1934 

homework on braided bags was strictly prohibited. The Compliance Division 

has received a number of complaints that this order is being violated, and 

will take the necessary steps to eliminate such violations. 

* * * 

CONTRACTORS AGREEiviENTS: Pursu?_nt to Section 12 of Article V of the 

Code for the Ladies' Handbag Ih~ustry, a form of Contractor's Agreement 

has been approved by the Administration, copy of ~hich is enclosed 

herewith. ' 

Th1s ' agreement is to be used ,,7henever work is given out on a contract basis, ·Additional copies of this agreement are available on request 

* * 

·ASSESSMENTS: Your attention is called to the fact that sales 

assessments are now due and payable for November. In accordance with 

NRA ruling, assessments are based .on saies from March 26,1934 , the 

effective date of the code. If you have not already done so , please 

include sales figures from March 26 - March 31 ~_ri th your next label order, 

* * 

Tell the Code Authority your problems. If it is an industry problem, 

it ce~nnot be yoJ.rs alone, it must be common to the entire industry. Why 

not tell the Code Authority and let them solve it for the industry. Use 

the columns of the NEv;s BULLET IN as a forum for discussion. Your suggestions or criticisms on 21ny m~tte~s pertaining to the industry will be 

welcome . 

* * * 

Additional copies of this NEWS BULLETIN are av2ilable to members of 

the industry for distribution to their sales offices and ·other plants. 

* * 

9811 
-173-

CODE AU·rHORI TY 

L.Ar.I ~s ' PANDBAG E-.:uusr.rrx 

347 Fift h Av enue 

New York 

-18- -------------------------- -~---------------------------------------- SEASON'S V 01 • II , No • 4 J'TEV, S BU!.,LET IN EN~ER 21, 1934 

GREETINGS At this time of t h e year, it is customa ry to l ook ba ck and 

ta~e stock of our accomplishments durin~ the pP st t welve month s. 

The Code for the Ladies' Handbag Industry vras approved by the Pre sident on 

Me.rch 14, 1934, and went into effect t ;?elve days l A.ter. In t he l anguage of 

the National Industri al Re covery Act, the policy wa s cl:.=!r d to b e "to 

prov)..de for the general welfare by rJ tin~ the organizati on of industry 

for the purpose of cooper a tive a ction amo ng trade groups --- to eliminate 

~fair competitive practices --- to r educe a nd r eli eve unemployment ---

BJ;ld otherwise to reha"'JilitP.te industry and to conserve na tional resources." 

The Code has accnmplished a great de l to cha~ e the ba sis of competition in the industry from t hat of under-paid labor and unregulated hours 

of work to that of com"9e ti tion based on styl e , g_uali t.y a.nd s ervice. The 

Code has effected t h e eliminati on of ch il <i l ab or and the e stablishment of 

the minimum wage in all br<mches of t he indu st r y . A stronge r fe eling of 

ccnfidence and security preva il in the indust r y , wh ich r efl e cts the i moroved conditions already apparent. 

1t has been the ende avor of the . Code Di rectors to administer the Ccd e 

for the Ladies' Handbag Industry without f ear or f avor, ~ith ut unnece ssary 

severity or bureaucrat ic methods, but in P. true spirit of j u stice and 

fairness to all, and wi t h an earnest de sire to be of the utmost s ervice to . ' the industry. 

The Code Authority extends gr ee tings and good vr ishe s t o all engaged 

in the industry 1i"ho thru their coopera;t ion 1 have mp de it possible for the 

Code Authority to accomplish such nefit~ as hav e come to t h e indust ry 

thru the administration of the Code~ You r continue d loyalty nd support 

are necessary to brin.~ added b enefi t s dur ing t he year 1935. 

ADl..UNI STRA1:·IVl. ORJ;ER NO. X-124 

Interpreta.tion: Effect of tempcrary interrup tions in work beyond 

control of employee as affe'cting maximum hours and computation of wag es unde r 

various codes. 

Facts: Compl a ints have been r e c eived conc erni ng pr a ctices of c ertain 

employers, subject to vari ous codes, whereby the employer 

requires his employee to take time . out .wi thou t pay during the course of 

a work day for peri ods of ina c t ivi ty due to breakdowns, del ay, ti me spent 

waiting for materials or Vl'ai tin~ fqr tlte loadint; or unloadint: of railroad 

cars or ether vehicles of trP.nsportatiqn, and int errupti ons in acticity 

due to other causes. · 

~ostion: Under the maximum hour and minimum wage provisi ons in codes, 

may an employer pro~erly require an empl cye e to take time out 

for such interruptions and not compute such time in determining maximum 

hours of labor and the wages of such em loy e? 

9811 
-174-

Interpre t?tion: Time furing which Cl n employee is ina ctive by reason of 

interruptions in his work beyond his control may not 

be construed as time not worked, nor excluded in computing his ~ur s of 

labor and wages. The term "interru.TJtions" inc.ludes, but without limi tation, t he specific instances hereinabov~ set _for.th under '·'Facts" \7henever 

the imminence of resumption of ~·ork require s the employee 1 s presence at 

the place of employment. Such regu iremen t is to be presumed in the 

absence of adequate prior notice from the employer th?.t the employee is 

free to leave his place of employment if he desires. ·An em'9loyer may 

not, however, by nqtifying an employee tha t he is free to leave for an 

interval too brief reasonably to be considered a tempor a ry layoff, thus 

avoid computing such .period as time worked. Nothing herein contEdned, 

however, shell be cons-trued to;. modify or ·effect in e.ny way bona fiC.e , 

voluntary Clnd mutu2.l agreements conce rning the suoj e ct m~ tter hereof, 

_arrived a t by employers and employees, when the same are not in conflict 

with the maximum hour and minimum wage provisions of the code applicable 

to such parties. ·· 

NAJ:IONAL I NDUST.r.I.AL R1COVERY BOARD 

· · ·c S·i gned) lh ·A.- Harriman 

Administrative Officer 

* * * 

NE;, CONSUMER EMBLEt'( AVAILABLE: In r esponse to numberless requests 

for a 1934 Consumer.

1 s Embl·em to symbolize coope re:i tion with .rJRA codes, an 

at t rBctive small sticker ha s ·been prepe.re.d for displa r. in homes, on 

automooile wi nd0\'1T S where permissible, etc. These ·emblems y be obtained 

by writing or telephoning to the Loc al NRA Commit tee in your .town or city. 

Last year, 60 million consumers signe d pledges of cooperation with the 

President's Reemployment .Agreement. The 1934 pledge re-affirms allegiance 

to the Code :9lue Eagle a s f ollol:11 s: "In the nationC~L effort to bring 

security to all, I will encourage and petJ onize those business establishments in vrhich the Blue Eagle of :t-TE..A Codes is displayed." 

9811 

LOCATI ON 

New England 

REGULAR LABEL SALES 

GEOGRAPHICAL DIST.rUBUT ION 

(as bf NOVE!ffiE3 30, 1934 ) 

Manuf a cturers Only 

·LAJELS ISSUED 

4,5&9,125 

Middle ~tlantiQ (not 

including NYC) 

Ne··, York City 

I\1iddl e ~~e st 

South 

Pacific Coa st 

' 6,792,700 

Q,720,300 

800,875 

259 , 000 

117,500 

19,309,500 

PERCE T· . 

23.8 

35.2 

34.8 

4.1 

1.5 

.ED 

100.0 
SUMMARY SHOWI NG PERCENTAGES BY MONTHS 

. .AUG. :31 SBPT • 30 OC T. 31 NOV. 30 

New England 27,5 27e0 25.7 23.8 

Middle Atlantic 32.0 34.4 35.1 35,2 

New York Citv .. 34.4 32.,8 32.9 34. 8 

Middle West 3.9 4.0 4.2 4.1 

South 1.6 1.2 1.4 1.5 

Pacific Coast .6 .6 .7 • 6 

* * * , 

CENSUS OF MANUFACTURERS: The U. S. Department of Commerce, BUreau 

of th~ .-Census, has issued census fit:,u.res obtained in 1933 for the manufacture ~f pocketbooks, purse ~ ?nd cc-rd cas es. 

Sta.tistics for 1933, with comparative figures for earli e r years, 

are given in the follovring tables. All fi gures for 1933 are preliminary 

and subject to revision, 

Summary for the Industry: 1933 , 1931, cmd 1929 

Number of establishments 

Cost of materials, fuel, &~d 

purchased electri0 enerGY 

Value of products 

Value added by manuf?cture 

* 

1933 

218 

$15,298 ,920 

$28,299, 004 

$13,000 , 084 

* * 

1931 

260 

$22,600,817 

$43,147,053 

$20,546, 236 

1929 

290 

$35,351,605 

$68,627,515 

$33,2?5,910 

ADVER·TISING EXPElTSES: It 1s a violation of Trade Frectice Rule 12 of 

Article VIII of the Code of F~ir Competiti on for t he Lad1es 1 Handbag 

Indu stry if yuu pay to circulc:rize your be-g s thr t he medium of any large 

buying orgcmization. The investigators are instru~ted particulc?rly tc l ook 

for such violations. 

* * * 

BLUE EAGLE: The use of the Blue La~le Insis nic? on ?.ny cards or l abe ls 

inserted in bags is abs0lutely illegal unl e ss it is the official label cf 

t he Code Authority of the Ladie s ' Handoa .: Ind'l.stry . 

* * * 

MISBRAr Dil'1G: The Tanr·ers 1 Council and the Code Au t.nori ty of the 

Leathe r Industry are cooperatin , with the Ladies' Handbe1 g Code Au thority 

to step all misbrandin.r; of the kinds· !=lnd qu.ali ti e s of lea t he r. 

The Federal Trade Commission has ruled that cowhide splits cannot be 

labeled "genuine cowhide" cr "ree.l cowhide ". The Code Authority will definitely restrain any member of the industry from branding any S].>lit leather 

genuine or real thru the use cf l abels or by inserting into the bag a printed 

ticket. 

9811 
-176-

IF FATENJ1 LEAJlnBft C0!\1ES: Do not fo r get that cold VTeet .. ler and cr?cking patent leathe r' are a l most 'synonymous. Protect your"Self by standing 

squarely behind the seven d<"Y retu-rn provision in the _Code, and make 

doubly sure by inserting cards in your bags that 11 pe.tent leathe r 1'- is not 

guaranteed end cannot be r eturned b e c ause of cracking. 

* * * 

HOi.iEWORK : The Code Authority has A.pp.roved a plPn for the control of 

home~pork and the ebo li tion of child .labor. The plan r equires the registration '!'i th the Code Authority of nll hornewo rke rs on hand-beading and 

crochet-beaciing • . ·Jlhe Code Authority wi.ll .set all piece work prices to be 

paid homeworke rs on hand-beading and crochet-beading. All other homevrork 

ope rations, such as finishing of bag s or leather brC" iding is strictly 

pr,1hi bi ted. 

* * * 

FREE GOODS : Jlhe Code Authority ha s ruled that the giving of free 

goods such a s initials or other a rticles not attacned to or a part of such 

bags is e. violetion of e trade p ractice rule. 

* * * 

RETURNS: Memb ers of t he indust r v are reminded thet for variou.s reasor.: 

this season of the year brings forth unjustified returns of merchandise. 

Section 13 of Article Viii ~eeds: 

11 No · membe r of the indu ·s try shall accept the return of any merchandise 

shippe d to a purchaser, nor allow credit therefor, nor exchange 

merchandise , after the m_ rchPnd.i se ha s beE-n in the T;)OS session of the 

pi.lrchaser for more than seven days, rhe re the agreement of sale has 

been fully pe rformed -. by,. such member. v ·· 

This rule is designed to protect you PgRinst this evil - -- \iliy not 

take advantage of it? 

* * * 

9811 
-177 ... 

Exhibit 11 C11 

COD _, AUJ:~iO=-tiTY 

LADIES 1 :i·£ID::D.AG E1DUSTRY 

347 Fifth Avnnue 

~Tew York 

---~-------------------------------- ---------------------------------~~~ ..:..V-=0'-"L::;.c,:--=.I..:::ci..::;I--=}.:...;o:......:...• -=1----------~r~E;ls _ _?_LT_Ll:E_T L\ _ J A:. !UALtY 2 3 , 19 3 5 

SUBJECT : Ruling on LnC:i es I .:\nd ~'-GS 

In n.cco r dance with y:Jur recent inquiry, the ~ommcndati:>ns which 

I m2..ae e.t the he·.., ring conducted jn J.::JJ.u..;.ry 9 , 1 935 , r e l c..tivc t o 

the p ro:rosed omendi1lcnts to ~1e Co c.e of tho LaC.i es I E~i1d:}n~ I ndustry 

nte.y be res t o.teG. somewh ~ t c..s follows : 

First , ,;. gener~ l rcstr tenci.l t vmuld. 

em:9h:1..si ze th..;. t t:1e coG..i ±'i C".t i :J~- of ai:.y 

indus try shou l cl be :-1.ccou;.J l i shod. so th0.. t 

the definiti on of the oduct be ox1ressed 

in tems of generic cl .q,ss ific r~ ti ~l n '',nci n ot 

in terms of 11 f or tho ~·urpose usc<l" or 11 t o 

whom sold 11 , 'J r " by whoD c~ :cried. 11 or s ome 

such simil.;.r q1.1.::.lifica t i on limitL1f the 

p r oduct . 

Secoi1o. , 011 the b1.sis of tho "'.bov c r1.nd 

fr om the df'..t .:'.. c:-.nd exhi bits :-,? r osentG cl for 

exrunL1a. ti m onr: vrl1ich I revi e'.7cci , it is 

recoerrnended .t the o..e fini ti,Jn include ll 

it ems embr·1.. c ed by the c; nericc cl ".ssific ~·~ n 

of 1'.the1proG.uct • 11 

All of the p r oducts eX':'!Osccl <'.. t the be ·,_ rinc ne r o ll }12.nd.b2.gs 11 , 

.:- ncl if the grou;p clr..ssific-: ti:n sh0ulcl be b:co\ :en d:>wn L 1to 

parts <.~e ,,c ndine up·Jn tJ.1c L!.~ \j ri ". l usc':., it is obvi ous to 2. 11 

t hc.1. t ridiculous si tu.:-1. t i o~1s El £3~1 t ·b e p r ec i p i ~~ t ed . 

9811 

* 

(Signed) G::-::ORGE S . 1J?..,J)Y 

Assi ·;.~ 1t AGministn:.tive Off icer 

* * 

l9_31_ AGLE _ @O_:Q_ _I N 1 930_ : Tne TIRB has ;.~--. nounc ecc 

t h:;.t :Blue EF.l.:.) cs for }X"'..rticul:.r tr -d.os <'~1,}. industri e s 

marked 11 1 93411 , :-'.s well f.'..s t hose ori[:;il1a l ly issued 

under the President I s ReenJ:; l oymen t Agroe;inent, m-;..y be 

used in 1935 . 

* * * 
-178-

EXE~"JTIVE ORDER 

#6686 

PRESCRIBL:TG A REGULATIO~J PROtii:BITI1TG DISMISSAL OF EMPLOYEES 

FO~ ~':::?ORTI~T G A"LillGE:D VIOLATIONS OF CODES OF 

FAIR COII!FETITfoN 

:By virtue of c..nd pursw:mt to the n. uthori ty ves cecl in me under 

Title I of the NQtion l Indu tri ~l Recovery Act of June 16, 1933 

( ch 90 , Stc.t . 195), and in order to effectuate the purposes of 

said title, I hereby prescribe the following rule a nd regul~­

tion: 

No emplo~.rer subject to :'. co ~e of f<'.ir compe tition 

ap-"'rove0. under n~icl titl e sro ~ dismiss or demote 

any emJ)l oye o f or makirg ·a com:p l c:tint or giving evidence with r e spec t to nn lle ge~ viola tion of the 

p r ovisi ons of .:m y code of f -:-.ir compet i tion approvect 

under sai d. title . 

All pe rsons ar0 he r eby informed th".t section 10 (a) 

of the Na ti:>nal Industria l Re cov e r y Act p r e scribes 

a. fine no t t o eY.ceecl five hundred dolla rs ( $500 ) or 

imprisonment not to e~cce d. s ix (6) months, or both, 

f or the vi ti n of .::my rule or regul at i 'Jn p rescribed 

unde r the authority of s c..i cl s~c ti on 10 (<'.. ) • . 

(Si6Jled) FR4.NK. LiiJ D. ROOSE'.?]~LT 

T3E WHITE HOUSE 

May 15 , 1934. 

********** *****~* *************** *~ ******* ** *** *******~ ** ** 

CO:.JTRACTORS.: This office must be n otified i mmodi n.t e ly 1Ji.Jon t::.king 

on n.ny new contrl\cto rs. Unlo3s you mt;i s t e r your con tr.:1.ctors you 

[\re not pe rmitt ed to issue letbels t o them. 

* * * 

RETURNS: '~<~embers of the industry c.r e r eminded that f or vari ous 

r easoi1S , t his season of tho ye ...... r br g~ unjustified returns of 

merch2ndise . cti ~ 13 of Article VIII c~ds : 

9811 
- 179-

11 1Jo member of the in.lustry sh·1ll "'.ccep t the 

rc t1.,_rn of r'l'l ;'/ me rch·:mc i sc s h i ·•:: ed to a -Jurchaser , 

nor J.low c:recli t thend'or , 11or exch-:>.i1c;e 

merc ~1 '.n G. is c , . ..,_ ft c r the mc rch:-nC..is e £n.s -Dc c 1.1 L.1 

th"" po ssession of tho purc 1r".80 r fo-r mo re t lnn 

seven d::1.ys , v:hcre the r.{TCOl"'lent of s".l e h'l.s 

been fu11~r :?erforracc: by such i:10m-be r . 11 

This rul e is clcsi brneci_ to ~1ro ct you ac:/'•L st this evil ---

Why not t o.::e r.dv··mt:".u; o f it? 

REP:S.L' TE:J VOL. II - l~o . 4 

1TEWS :SUL:::.ETET 

* * * 

C01IPLIAiJCE })I VISI Oli - ~(A ~IST IC S (Deccmbe r 31, 1934) 

Investig::.tions : 

1\fumb c r Previ aus l :r Ro~· ortcd 

Number Mo.do Duril1c; Hov emb e r 

Tot ....,.l 

rJumbe1· :i:To r:.- Caml)linncc C<•.sc s Pending 

Nunber Cl os ed Durin:·:; November 

Rest ituti on : 

liiUmber of Firms 

number of l i.1 cli vi du;.l Sm)loyco s 

Totnl A..rnount ~. id 013 , 891 . 14 

TotCJ.l Ar.lount PeYtdinc; $12 , 640 . 10 

* * * 

TOTAL 

RCGULA.~-t L.A.EBL SALES 

\7E:I~LY AVERAGE --- J U}ffi 1, 220 , 000 

J ULY 2 , 154 ,COO 

AUGUST 3 , 529 , 500 

SEPIS ~.ffiE R 3 , 4:87 , OJtJ 

OCTOBER 4 , 045 , 000 

NOVEl.IBER 0~'0 

DECK11BER __ 2_L 410 , 000 

Tot;.l 21 , 1G5 , 600 

Tot-'..1 SticLer L<!.bc 1n •••• 

(Mfrs . nnd Ret ilers) 

- - ~3 8 , G71 

512 , 857 

74:1 , 109 

94:0 , 806 

879 , 2-18 

1, 023 , 080 

6' 2 , .J'C 

800 , 000 

GHKill TOTAL •••••...• 21 , 955 , 000 

9811 

1081 

326 

56 

49 

50 

1008 

1407 

DAILY AVERAG:;;:: - ------

85 , 714 

102 , 571 

1Lt8 ,202 

188 , 161 

175 , 869 

204 , 616 

L ?.C , . ,r (' 
-180-

REGULAR LA:OEL SAL:SS 

G E 0 G R 'A P :i I C A 1 DIS T R.I :2· UTI 0 N 

(o.s of December 31, 1934) 

Manu£2cturers OnlY 

LOCATION 

New Engl ~ .. nd 

Middle Atl~nti c (not 

including NYC) 

Nevv Yorl:: City 

Mi cd.le West 

South 

Pac ific Co::.st 

.. • •• ~ I ' 

9811 

* 

5 , 095 , 625 

7,761, 200 

7,557,800 

839 , 875 

. . 333 , 000 

132 ,000 

21 '71 J ;, 500 

* * 

I • 

PER CEl'TT 

35 . 8 

34 . 8 

3. 8 

1.5 

. 6 

100 . 0 
WEEKLY 

co SALES 

(X) 11.230000 ...., 

...., 

1000000 

750000 

' 

; 

I 

500000 

' 

250000 -

N ~co ~ 

~ ~~01:'-

!Week 

N- r-f ·r-f r-f 

~ding ~ 11-. • 

~ ~ 

~ ~ 

CODE AUTHORITY 

LADIES' HANDBAG I NDUSTRY 

GRAPH 

of 

WEEKLY & TOTAL LABEL SALES 

1 9 3 4 

~ 

' 

\ 

·-

LEGEND 

Weekly 

Total 

. 

~~1:'-~ ttl ...-4 ...-l~LQC\l N r-f ~~C\l(}) 4.0~01:'-

r-fC\l~ 

• . • PI ~ t> () 

~ () 

fll 0 ~ a 

' 

' 

I 

~ ...-4 CXH 

...-4 C\l ~ 

-

TOT.AL 

SALES 

25000000 

ro oooooo 

15000000 

10000000 

5oooooo 

I 

...., 

CD 

...., 

I 

-182-

.ltDivihfiSTrtATIVE ORDER X-130 

I n t 8r-pr e ting P:covisi or:.s i !1 Corio s nhich E}:tend 

·ri nimum Hmu-1 ~~ ::_:{:1. t es of P-w to Pi e ce- Workers 

Pursuc.nt t o authority v est ec1. j_n t 18 1 a t ion,",1 I ndustrie.1 

Re c ove ry Bo;.,r cl uncior Title I of the ti ..,, 1 I ndustri 8.1 

Recove ry Act "b ~r Executi v o O::.· c~ :c·s Jf l:.hG Pre sident , inc1 uclin[, Executive Orde r l'Jo . 6859 , cJ.n.t ed Sep t cE1b e r 2 7, 

1934, ancl otherwise , it is 11e:t oby o r cJe r e ct !D. t p r ovisi ons in 

codes V!hich ext end t :1e 'l..}T,1icc.ti on of minurnum ho"LIT l y 

r .".t e s of p':'.y est'",:u lis.led tnore i n to errp1oyee s e ngnged 

o;1 p iece-wor:: b1.si s be .:1nc-: t hey here by 1.re intrepr e t ed 

a s fo1l ovrs : 

Unde r ['..ny suc11 provi sion L1 <'.ny c ode , ,~. n emp loye r s ho..11 

comput e the r,_ inimw:~ c ompensa tion ~"'=t :o.. ble to e::1,ch p i ecev:rorl: eml=' 1 oyee on ~'l c b-':',sis of .". -;) eri od of n o t more trrn 

sove i1 COilse cut i v e C..•.ys . ~, ch crm_)loye r sh-:-~ 1] lY'-~r t o e .",ch 

of his p i ece- work Ol~)lo yce s f or wor ~ p e rformed by sn id 

em_>1oyee durin.=._ such ::e ... i o<l ".n ··· rnow'lt no t less th:m the 

p roduct 'Jf t h e mi nimmn h0urly r "'.t c p r (;scri.oe cl in s.::'.ic1 

cocLe mu1 t i p lie d ·by tho "'t.k:~-b r of lour s wor?-::ed by s J.id 

e~ oye -: c'.uring such peri od . 

If <~ny such rovi ioi1 i n "· cor.o " S t hus ;'.p-·1iecL shou l d 

work 112. rd.shi•~ in n.ny c .... se by r c,"'.so:n of -.'Jo culin.r circumst:".ncGs or methods of opc r ;,ti on , the errrplo yer e-f f ected 

thcre-b;y mC'.y .p-pl y for an exem1tion t o such 1-•r ovision . 

Wn.shL:gt on , D. C. 

J ':'..nu.".ry , 1933 . 

* * * 

l'bti on!:'.l InG.ustria l Recovery :So.=rrd. 

B:>r: VV. A. Harri m·"'..n , 

.A.c1ministrn tivo Officer 

.~.- RA PROV ISI O~~s :-:3..:.-'.E 'lO SS:AY: I n '"'- recent spe e ch b e fore 

t !1.c Co11 s tructi on Indust:.7 Mee·Gint;; q t K11 o:x:vi1le , Te n:1., Art hur 

D. Whi tcsir1G, rmmoe r of t h e }hti on 'll I nc.ustri ..... ,l Rec•Jvery 

:Soa r 6. s c.id , 11 It ::tppe ·<..r s inev i t .... -.J1e t h.,. t the TTk'"'.. jor iJ rovisi ons 

of the NI P..A in some form will b e come ". jJ err.1an ent ~~: rt of our 

ec nor:~ c 1ec i sl-,_ ti orl . 11 1ir. W:1i t csi c;_e .,_ls o s;,iC. th.,_ t 

mo ific ~t o~s of t h e ov si oil s il ~ b e ~o vern d ce ly by 

tho act1J..2_ l r "su1ts o·ota incd {)l the effo rts of the NRA 

U') to this tir:1e :mel fo r t he next fe vv weeks . 

* * * 

I i i P 0 R T A lT T T 0 IJ:1 I C E 

The CoC. e Authority r·mst i :1sif:·t J.l~ t YJ 1..1r :o:-~ yro11 rep ort s , 

c:mcl ~:.be l clis·oo si ti Jn r e cords ",rc: fill ec,_ out c.nd r t: turned 

981 1 

-183-

to us not l~ter L!.'1.l1 t~lG tc nt~1 cl·~.;y of O"".cl1 n:o11th . 

If you clo your part , the st ...... tistics nv.:_ .i1n.b1G for the 

i ndustrv a t the end of tho fisc"'.1 yec.r wi lr·b E.i:nv:.1u..'1.b1c for e very r:1emb0 r of tho i ndustry . F<'.i1ure 

to submit pnyTo11 TGJJo r ts constitutes a vi o1'l.tinn of 

t he Code . 

9811 
-184-

CODE AUTHORITY 

LADIES 1 ?..AlTDBAG Ilr.JUSISY 

347 Fifth Avenue 

1-!evr Yorlr 

VOL. III No . 2 Fill32:tUARY 20 19 

D:C SIGH ? IRACY: Protection ag'"'.inst d.e siL;n ~J iro. cy for tl1e 

L1dustry :O::.s 110 t re t b een .pp rov ed . I n t he ?Ylee .. ntime, 

members of the industry who dosi r e to )rot oct oriG;ine.l 

d.esi e;ns r.1o.y do so by m'l .:inc; ,'l:.fl'•li c[tti on for .::.. d.esign 

p;:;.tent . 1e office of tho Code Authority will furnish 

t h e :1r2 c oss'1r y i nforilk:'1..tion , will g ive instructions how 

t o fill out ~1e lle cossary do cumen t s , n. c~ ~id. you in the 

pre)ar"'..t ion of the dra wine; , whi ch must c.ccompany the 

:J.~i lic :-. tio ·,: . A dcsi c;n ) '"'.tent m0.y bo lJrocured vri thin 

thirt;y C.~ys of £'.n c:p ~~ lic '"' ti on . It ,~ rves to protect 

the d.e si c,n for 3\· ye ·'.Ts ·') r l oJ.lf;e:c , if required. It 

is e;.1force J..b l o in the Fedor·.l Courts v1i th i njunction 

pro ceediilgs , if n e c essar y . Tne cost is t en do ll~rs, 

w:i1ich is t J.1c governmm1t f e o , ~1 lus the cost of m.1.king 

the dr::'..Wi l1g . If 2' 0U a r ·: int e r o st ecJ. in :tp ine; for 

des n l')O. t ents, c ommunicP.t e with t ho off ice of tho Code 

Authority. 

* * * 

JJ)r.HlTISTR4.~ IVL ORlJ:SR X-134 

I nterpre t :::'.ti on: Jlic .., ti n of i.1ome vro rl: "'rovisions 

~s c on tained in vari ous code s . 

FACTS: CoJ,r .l a i nts lnve be en r e cei v e C.. t:i1c.t cert.::1..in 

eml)loye e s .-'1.. 1~8 Ol1CT•t: e -:".. L1 t :1e }l r ;:;.ctice of ~~ rocessing 

r..rticl es , ~1e :.1p te t1. l for rrhich i."to.s b een furnished 

bJ the empl oyer , such )Jr ocessL1g beL1t, ~e rformed either 

il1 the home or li vin[; qUr"'..rters of the emp loyee , or in 

a so-ca l l ed shop o~~e ec: within t he home or living 

quort c r s of t ho em:Jl oyeo . 

Q.TJESTIO S: l. tis r~e:::.;.1 t b y "hor:le or livin::; qu •. '=l.rters" 

c\S the term i s usec1 L1 Code s of F<'.ir Competition which 

provicle for the o.bo li tio:n of h :::.me wo rk? 

9811 
- 185-

2 . :Uoes th'3 1- ~.ct ic e T)tr:'rl abov tJ nnde r 11 F;.cts 11 constitute 

::1 viol c.. ti e>i.1 e>f such Cod -~ s '>f -_-..... i - C')r:r_reti tio:n ? 

INTEill'RI,TATIOU: 1 . Tne ton· ~~ ~1ome or livinc, qu:.1rtcrs 11 .~w~ jJ.S 

the priva t e house , 1.1 riv<'.t e 2-·oc. r tnen t o:- ··"lriv1.te roe>m , v1hichev er 

is the mos t extensi~c , occ~Z0i ec.~ c.s ::. lnme by the em:e o~Te c P.?:l.d/ or 

h i s f amily. 

2. . The :)r "'.cti c e of ~o ocessiBg <:.rticlcs , the 

rna teriD.l for whi ch h.·1.s ·b 6 :: :n furnisher: by the em·ol oyc r , v:hethe r 

performed in the homo or li vLl€, o_u.r'J.rt c rs of the em~J o;lee , or 

t he so- ca lled shop, opera t ed \'Ti t hj_n t he h ome or living qua rt e rs 

of the emp loyee , as t he t e rm 11 no: ,lc or l i vine q_u.1-rt ers 11 is ctefinod 

here i n , constitutes ~· viol··.ti ;n of co c'.e s which Drovi cle f or the 

abolition of !1orneworl: ; excep t <:.s r r ovi dcC. i n- ec tiv Order 

6711- A, da ted ld2.y , 1934. 

W~shington , D. C. 

J ..-n"Ll'\ry 26 , l'J35. 

* * 

(S i gned ) W. A. :-lo.. r r i l'1'l['.n , 

AchnL'l tr ~. tiv o Officer 

~~ ·i 'D::·- 1 I r£.-.. .:ts tri::tl Re cove r y :Boetr d 

• J 

* 

?'.AZARDOUS OCCUPATI_Q.J_S_: The Labo r Adv i so ry I3or.r d has r ecorr1r.1ended 

t n2..t miiYHs unc

1

.e r 18 be exc l udec.: frau L1e fol l owinc o ccupations 

in the induntry: 

l. As drivers of truc:-:s or o t ho·t mo t or vehicles 0r 

2.s he h )ers o:c liv c·c~· ·b o~' in such ve h iclco . 

2 . In , or aos stin~ , 

or steam e:n:_,i nes u se· 

t he ;: r· · t i o ... 1 ·)l G''-c: , oil 

..... s prino movc::L·:~ . 

3 . I n t he Ol•e r ·:•.ti o'-·l , custo.:y , or n~p ·1. ir o f e l ov['.tors , 

crane s , der ic ::s or othe:..' h ) i s tinc :;;pl.:-tr n.tus , except 

in the o:p ~.tio n ;:f.' (l ) tl. um·ow~it ers 8-E cle fine d by the 

Americ;:.n St n.ndJ.rds Asso cin.t i rn or (2 ) . J r e l eva tors 

equip --e d onl r for 0.utont.1.tic o'='er~tio~1 .. 

4 . Firinc; of steam or vnte r boil e·cs (e .·ce:•l t boilers of 

n o t more th n (15) poune.s ) r es::;ur o us eel so l e l y for 

he a ting ur~oses . 

* * * 

FJ..i\J.ID:CAGS AiYi-::J Pl.BSBS .F.:S~_r, IIJ ING FO:-: 25¢ OR LESS : Pre1J8.re.ti on s are 

beii.lC T:L"'..de to i:ncluc' .. e '- ~;,C..c.. r the.. ~".. e 8f G Ltt.d. i os I H.c.nc"..bP.G 

I ndu s tr;l t he i:tcm·oers 0f t ho I mi t ·'.t i m Leat l1or ''.n d Le3.t he r Nov e l ties 

9811 
-186-

Group whCJ m~ .. nuf.:-> cture l ·'.dios ', misses 1 a ncl children 1 s mndbe.gs 

thc..t ret:'.il _iron lOtt to 2f-¢ e;:lch. This group vr2.s formerly 

incluG..eO. un<ier the Cote of the Luc;g2.ge t'.nci :t'ancy Le0.ther Good~ 

Industry , but wc..s rel oo.sed rrhen it bec81!le evi dent t l12.t the 

product of these manufa cturers could be classed as rightl y 

belong inG to t he hc"tncl.b2.G industry. The industry includes o.bout 

75 manufr.cture rs , 'Ni th u. voll..J.me of sa l es betvreen four <.mel five 

million ~o ll rs . 

* * * 

In order ~ f a cilito.te the 

your payroll r eports , time 

a va ilo.ble for ins edtion . 

·wrk of the Code Authori t;y invest ~ga tors, 

cc.r C:.s and c ther records should be freely 

Your earnest co ope r E".tion wi L. be ap:orecbte. 

************************ **** * ' *~ **** ** ~** **** 

SPI:CIAL JOT ICE 

Article III , S8 ct1on 2 , p rovides : 

"Ho :!)O rs on emr)lo:roc in shi }J. L:g , c l erica l, or 

offic e wo r!: , unl ess ~1.e is em;) loyecl. in n m2..nage rial 

or execut i vo capD;ci ty and earns no-t less than "th:i,_rt;rfi vo doJ. l a rs )O r week , sh.A.ll ·oe permi t ·cecl to wo r!: 

i n excess of fort y hou.:cs per week a verA.gecl over a ny 

one month peri od ." 

* * * * '" : '~ * * * * * * * * * * * * , .. ·'< * * ,., •. •'• * * * * * * * ,., ,.< ' ,., * >:< ':: !:: >: ':< * * * * * * " •': * 

F..ANDEAG ADS FOR JAiJUARY 1935 

Ads ap:: eari:l.[; i n the New York Times , .ll..lne I i cc.n , News , Mirror, 

Evening Sun, and Evening J ournal 

Tot ".l Humber of Ads -- 79 

T.ABUL.A.TI Or~ SHOWING P.:.,IC:SS ADV:SRTISED 

Unde r 50~ t o $1.08 t o $2 . 0'1 to $3 . 00 to $5.00 to 

5o<t $1. 00 $2 . 00 $3. 00 $5 . ,-

-

,n 

.... , $7.50 

$ . 15 (,3 ) $ . 50 0 1 l~ $2 . 00 (3) ...,~ 0 ") ~ • 0 )J • $5 . 49 

• 19 . 59 (5) 1.19 (2) 2 . 95 (8) 4.69 6 . 80 . 29 . 64 1.29 2 . 98 (4) 4 . 95 . 39 ( 4) . 66 1.25 4 . 98 12.75 . 44 .77 1.39 (4) ~9 .79 1.45 (2 ) . 89 (2) 1.48 (2 ) 

. 94 (3) l. 79 (3) 

1.90 

1.95 (6) 

1.98 (2 ) 

Tot 3.1s --- 10 15 2S 15 4 2 j___ 

9811 
-187-

CHART SHOWING WMBD OF ADS :BY ~~UPS 

00 -

~ 

as 

- ro 

16 

~ . ~ 

tto 10 -

1--

-

II 

'l 

Up to 50¢ 50¢ to $1 $1 to $2 f2 to $3 $3 to $5-

I 

I COI4PLIANCE DIVISION - (January 31, 1~35) 

I Investigations: 

Number Previously Reported 

Number Made During January 

Total 

Number Non-Compliance Oases Pending 

Number Closed Dur.ing ·Jsnuary 

Re sti tutiont , 

Number of Firms 

Number of Individual 

To ta.l AIJaount Paid 

Total Amount Pending 

• 

:Dup1oyees . $14,625.34 

$13,480.00 

• • 

i407 

459 

62 

26 

63 

1031 

30 

. 

3) .. 

•10 

• : h 

$5 to $7.50 

1866 

Over 

1.7.50 

- 183-

LA.BBL IVISI O~' - (J::1.nu··.ry :)l , l :?3!j ) 

ill:GUL.~::t Llw:CL SALbS 

TOTAL \'::E::.=KL 1 A V:.CRA.GE 

420 ~i 7l 

512 , 857 

741 , 109 

940 , 806 

879 ~)48 

J AI 1-! A \7"2:-:AG~ 

J1,~IE 

J ULY 

.At'GUST 

S:DPTD.!3ER 

OCTOBER 

rJOVEl illER 

DECEii})ETI 

J.AlTUARY 

Tot c.1 

1 ,226-; ot:Jo . 2 ,15-1 , 000 

3 ' 529 '50 .i 

3 , 487, 0')0 

4 , 045 , 000 

4 , 3 10 , 000 

,~ 000 

_ 3 1.: 543 __ , __ 5J _ ~ 

24: , 69:J , 500 

1, o::3, oso 

60:::; ' 500 

805 , 340 

Tot -1.l Stic~~er L:::.b .:'ls ••••• 800 , 000 

(lvlfr s • a n C.. :2.e t ".i lr:: r s ) 

G~-::: ~OTAL .•••• ~5 L~9C 500 

* * * 

Your spec i -:>. 1 '"'.t Gent: ::m is ,.,(.".in C".11ec. to the 

olloni~g re~ul~~1onn : 

85 ,714 

103 , 571 

148 , 202 

188 ,161 

175, 869 

'J04 ' 616 

~~0 50J 

169 , 932 

EL1E EAGLE • • • • • The use of the El ue Er'_sle I nsi gniP. on 0-.ny 

c a r ds or l .-:1.b cl'"' Lu:;erte:- L1 b'"'.gs i s abso l ute l y i llegal w1less 

it is t l1e 0ffici -·.1 l ::.bo l of tl1c Cod.o .Authority 0f the Lacli es 1 

H::.n0.bac; I n0.us try . 

* * * 

0~ TilA ':_10rtS : T!li s office !:1U!3 t ·be ;.10 ti fieC:_ i;~1ner~_ ~ te1y u::;:lOn 

t ::'.king Jr: .:ln y i'.8'.'' C011tr-··.ct -Jrs . Unl ess U roc;i s t e r ~ro ur 

c or_tr::-.ctors yJu: ".re ~10 t -~Je l'Ii1 i ttcC:. t o i ssue l ":nels t o them. 

* * * 

98 11 

- 189-

CODE AUrnORITY 

347 Fifth Avenue 

iQL . III iTo . 3 us =-1 ·? l , 193!'3 

RL.'?UlTD : As · vi ous ~- :.;Lou.r:ced in our l e tter of ia rch 

ll, 1935 , tile Coc~e .A.uthori t y vot e0. t o r efuncc to membe rs 

of the indu"' try t l1c sum of ·)30 , 000 . out of sur~1 l us . T:1e 

[JnQ'L1.:.1t ~-:. ch Jer,1ber is to r e c e i ve will b e b ·:.secl UlJOn the 

omo-w.1t c o11tribut ecl ·by hir.1 t'o t l1e Cocle Authority during 

the buG.c et yee.r fr m:.1 Li::.rch .-:;6 , l 93L1: to Mo.rch 2'J , 1935 . 

Suc:i.1 C.istri ·JUtl on is t o ·be mc.c'.e ~-s soon ;-,_ s }JO ssible 

::.ft e r e -:-.ch menoer sh..,_ l l r e·oort l.1is coo-.Jl e t e s a les U ·) J. -

to 2.nd incluG.il1c; lvhrch .2;:} , 1933 , ~'1 vid ec' , howev e r , t h:1.t 

such r;1ember wi l l :i.r.ve ::;- "'.i C. ;:tll ··;-:--tOUl'1ts clue t o the Co de 

.b..uthori t y on ~ ccou.nt o. :··.ssessY.len t s . 

I n orde r h:~. t ycn.rr l' e:func~. c l1ec;: ma~r be mr'.i l c.d to you 

vvithou ~ c.. unnec es<!:>, 2-c'..e ~.~- , it is im~Je i. tiv e ~1c.:. t 

you furnis h this off ice n j_th yol'.l' s c:.le s fi gu.rc.s u;o to 

-.n.ci. incluC.inc; Me>.rch 2- , l 93L) , :1.nci. t o enclos e ch : for 

ronount c:.u o , ::-.s so on ".s )Ossi.u l (., t"..ft c r th;::~. t C

1

.at c . Do 

ot Tl.it until the cnc1• of tht... nonth to s end us your 

co .J:~- e fi._,ur 0 s for 1-:....,.rch , ·.s the b ·• l 2.nco of the month 

m0.;r b e r c)ort.:. ci_ L1 A )ri 1, ...,_s usuc..l . Those r e funds 'iii 11 

no t b e crcdi t ee: to JO'....".:J.' :.c ~u:1t , ·but vrill b e i ssued in 

cho c~.: f o ri':i . 

* * 

W5 <".r c "'..L;- i -.:!. .inc:~ =rour ...... t Jent icm to Artic l e III, 

Sc cti :::>:,1 --; of the. CoCc . fo:-c the 12. ·.i cs 1 E ·ndb0-g Industry : 

9811 

11 ~o ·1c r o·• c= llo--er-. J. -~ sh1. ---· 1· ·., • - ~ -- ~" '. .Y u. · " - . •·C. ! cle ric .l, or off ice 

VJo r : :, unl ess :K i s crr 'l~yoC. il1 .::t m:tn"'e;c ri:-'.1 o r 

exe cut ive c::~ .,n.. ci t y "1nd c-:.r:;.:.s no t l oss 'ch.'U1 t h irtyfi v c doll ".r s c r rrc ck , sh1 ll ·be ··• ermi t t eel to w orl: 

i 1 ex cs~ of fo rt y ~1ours ·1c r wo ·J.: .l.v e r:.c.,ocl ov e r 

:my one m'Jnth ·lcri ocl . 11 
-190-

T"ncro seems t o b,:; C'r sic:_,n" .. blo misun(c rst .nc.l"il6 n.s 

to t his so c ·c_,_o_:. , L1 f<:.ct , sm:1c r.lcr·ivo rs f oc.l th.;.t the 

Co{ c ~.1 ro is io ... L r ef o:cri:1r; to hours -~. ,_ W'"'.gos c~o no t 

· 7 .ly to cl e rica l or sh l~ inc; forces . This lJrovisi Ji1 

i s no os~ im--· ort. n t th:.11 r.m:;,~ otho r ·: revision of the 

Co{c , ::-.~10. viola ti Oi"! of t:lis s e c ti on c =:-.rrios vri th it 

t l1c s~.i :c •:JOi"'.t". l tics ··.s p r ovidccl. for ."'.11 viol ...... t ions of 

the Co 0.e . 

* * * 

11 ~1o member' of :""Lny inJ.us tr ~r subject to --.i1y· Code coDtl.ini. 

ma11 a~o r;y l o.bc l Drovisj.ons sh:::t ll s e ll, dc:-t. l L1. or use 

c:.ny l :1.bc. l bc "' rinc; th~J :::.,h:_c :SC::.c_;lc or b "'.:;,:ril1.G ::>.ny other 

emb l em o_ r ins :~~n !O'. of thv N~:.A othe r t~'lD. n t:.r.t issued. by 

t~1o Code Aut:10·ri t y for such inC. us t ry j:Ju rsu"'.nt to provisi· 

of such CoC:.c :.11c.·. of t his Orc~cr . ~~o i:JC .:bc r of :.n;r such 

inc.~ us try sb:.l l sell , c~o-, 1 in or usc ···.ny l ...,·o c l nhoso fo:"" 1 

cont en ts or L1si [.:.,n i :-. "l.r<; so simil -.r tor-. 1 -·.bol issue(o;· 

<'.ny such Coc'.c h.uthori ~/ "'.s to ·bo c.:e c c-Jti vo • 11 

This ;Jrovisi. on c:ocs i10 t :.1 rohibi t the u s e of ticl:ots or 

l abels t o L :_cl.icr·.t o tho ~;:L 1d or ~_- ·o of o:::t ~1e r, ,:;tc ., b1:: 

do os }Jrohibi t t he usc of the ']J.uo Ertglo on such tickets, 

* * * 

Do11E'..ld R. Richb , t iw :s~-ecutivo :Jil·ector of the }ati·n. 

Emo r concy Council, ~.uthorizod th8 fol l o vin:, st ..... toment: 

9811 

11 I cl i O. not submit t o th~ Sci1n.t c =il1-:..nc c Committee 

on lvhrch 1":: , 1.ny l i st of coclcs or :.ny num-ber of 

c ed es, with ."'. co mr.'lm~c-:.-::.tian t h2.t the y should bo 

:c;_r o:····cC::.. 1 • I sugccst c-:.-:..::. nc tho( of clo"'.'ling with 

t l o -.robl cl'! l :!n:. c;.1 c<~ ·by the Se rvice Inc.ustrics, 

I ~. ls o S1JG;' .:st cC. t~1c ~1o i blc c on solid"'.t .. 011 of n. 

1<'-r c;c ;:lumbe r of sm,'.. l l codes '·'.nc1 s"'.i c-:. t h .•t if all 

coclc s cove ring L:;s c:: th ...... n t on thous "'tnd employees 

pe r code sJ. ould. 'be conso1i<l:;.t :l~ into .!'1. f ow codes, 

five hu:: dr-.;c1 r.~ nc: thirty- scvc:n Hol..:l <l -bo ' eli min.:t.ted1

, 

T1tis c;_i cl :c1o t mc m t i1::"'.t co c~ ific.:::. on of thos e industri e s vToul cl ·be encl.ecl , ·but th::.t tho number of 

so:~n. r.~. o coclcs c ould_ ·oe r cG.ucod . T:10 r o w ...... s no 

c:..uthori ~r "rlutsocv o r for t he :"J rL1tL e; of .::~. ny list 

of coclss , riit:l the ~~ tcE1 cn t th Lt I h:<..d. comr:lEJnC.e~ 

t :1:;.t t hey Je c1.rop~"lCL~ . I h':'.V C :1ot issueG. 8.11;)T such 

list, or rccor,-u·,c~1 c-:.oc. ~· such p olicy. 11 

8] 
:11 

19l~ 

Your :-~, t.o nti n is es·,:; e cia l ly cr:.llo {:_ to Articles 6 e.nd. 

12 of the La be 1 R: gulr>.t ions ( o~Y'f of w!1ich wi 11 b e found 

Oi1 tno ':l. c~ : of your or dGr ·b l ·t:1l: , f orr.1 1o . 4) . 

6.- 11 Al l l a b ::. ls are to be secure l y J. tt i1 e<l to t hG 

h['.:1dbag , -o ocl~c .IJ Oo:: or .., ur se , i:l a con3picuous 

position OE the 18ft-hrmcl sido, l! r c. f e r r..b l y on 

the mirror .--. ocl:et • 11 

11 Se c1:r e l;y "'.t t£\.chect 11 me .ns e i thor scvm to 

t he pocket , ·J r :~ ut i nto the r'r::1me . 

12 - 11 Al l ls <:.n. to 'be usocl. exclus i v e l y b y or for the 

firms to v.rhom they 2..re i ss ued. . 11 

Tl~ [' nsfer of l o.b e ls f ror", one m-:·.nuf-.ctuTe l' to ::mo ~1c r is 

strictl:· ag .. inst ~he 1.::-.be l r et;;ul G.t ions , "'.n c c onsti tutcs 

a viol2.tion of the Co de . This J-' l~".ctico c us e s r..fusio n 

i n l'ocords , r.mC::. !1"\.:_l_.}:e~, it L il}lOssi blc to c o: trol compli.:m c e 

with t hG p r ovis ion s of the Code . 

* * * 

;iliTDEAG AcJ<:; :;;,OR ]'E3.1lJ.A2Y, 1935 

Ads ['.::l pc~r L in the Nev-.- YorJ-: Times , Americ::.n , 

News , Mirror, TrHnme , Eve ni::1c; Su..1 , Eve ning J 0 u rn.:1.l, 

rl -r:I' cf n ".!H. Post . 

Tot· 1 Number of Ads --- 119 Tot ···.l N-umbe r of Lines 18 , 840 

Under 50·/ to "' 1 " " t..? ~" .) to s -~ n t o c... "''• .. · J . Jt) \, . to J., ,- ()J ~o . to Abov e 

50 . ..1, Gl . 0 · '\-2 .oo :)3 . on 0 £7 . 50 $7 . 50 

... 7 :+' . t..J (1) $ . 50 ( LJ: ) ~~ 1 . 19 (2 ) :· .. . 77 (6) J.. , ., f1 r: ~t.) • .::._; (1) $7. 50 (8)$10 . 00 

(9 ) 

. 39(12 ) . 59 (3) 1. --~0 (0 ) 95 (10 ) "l . J5 (l) 12 . 89 

(1) 

. 49 (2) . 65 (1) 1.4-9 (3) .,._, . 98 (3) !) .• ~: (l) .3:3 . O'J 

(1) 

. 70 (1 ) 1 . 50 (1) 3 . (}j (.1: ) 4 . 95 (1) ~5 0 . 

(1) 

. 79 (l) 1. 59 ) 4 . 38 (.?) 

. 94 ( 7) 1. 69 (;-;; ) 5 . 0 '-. (7) 

. 95 ( 1) 1 •. 79 (2) 

1. 08 (8) 1. 9S (4) 

1 . 38 (3 2 

rr·ot -.1 15 ;r )') "J~ r..,O o.,JI.,J ,.J ._ .. 1:3 8 12 

Avc r"/'':G AC. Cons j_ s t s of 150 Line s 

30 

20 

0 

-192-

CHART SHOWING NUMBER OJ ADS :SY GBOtlPS 

30 

22 

10 

I! 

n 

Up to 5o¢ 00¢ to $1 $1 to $2 $2 to $3 $3 to $5 $5- to $7.50 Over $7.50 

9811 

• • • 

STATISTICS 

C01~LIANCE DIVISION - (February 28, 1935) 

Inve-stigations: 

Number Previously Reported 

Number Made During February 

Total 

1866 

554 

Number Non-Compliance Cases Pending 91 

Number Closed During February 22 

Restitution: 

Number of Firms 64 

Number of Individual Employees 1033 

Total Amount Paid $14,668.30 

Total .Amount Pending $16,000.00 

• • • 

-193 ... 

Ana l r si s of the I ndustry : 

lh.lJnb e r o f Ma nu f a ctu r e r s 

Numb e r of Co ntr a ct ors 

* * * 

LABEL DI VI SIOH - (Feb r unry 2 8, 1935) 

REGULAR LABEL SALES 

TOTAL 'NEEKLY A VEH.AGE 

JUHE 1 , 220 , 0Cr ' 428 ,5 71 

JULY 2 ' 154 , 0 ')"1 5 12 , 857 

AUGUST 3 , !S29 , 500 7L2.-1, 10 9 

SEPTEl\iBER 3 , 4 87, 000 940 , 806 

ODER 4, tJ45 , o;o 87 48 

NOVELiB:ER 4 ' 31 ') ' 000 1, Ct3 3 ,C80 

DECEl'fBER 2 , 410 , 00') 602 ' 50 ') 

J AHUARY 3 , 54:3 , 500 805 , 3-40 

FEBRUARY 3 20 92 , 000 813 , 684 

Tot2.l 2 7, 790 , 500 

Tot 2 l St i cke r La b e l s • • •• 800 , 000 

(Mfrs . C:\::ld. Ro tr..i l eT s) 

33 7 

1 75 

DAILY AVEP..AGB 

85 ,714 

102 , 5 71 

14 8 , 2 02 

188 , 161 

175 , 869 

204 , 616 

12 0 , 50 ' 

161,168 

1 62 ' 737 

D TOTAL •••• 28 , 590 ,500 

* * * 

MUF2' BEDS: We a r c i n r e c e i p t of c l .:-·.s s i fi c.:.:. t i on of J:tuff 

beds by Hr . C. H. J 2.mc s , Exe cut ive As si st ·'..nt , Te x t ile Divis i on , 

as f o llo,ds: 

11 The manuf-:.cture of muff b o0.s : .s such i s cove r ed bJr 

Loil.i e s 1 H3.ncr b·'.g Coclc e :ree-?t v.,rhe !l ~uff ·beds a r e r-a de 

-b y a m::muf ;::>.cture r :').S an i ncidentn.l p8.r t in t he ma nuf.::tcturi ng of comp l e t ed muffs when the y a :re i n c l ude d i n 

t he ap- "~ 1ic :J. e Co de fo r t h-:.t m:.nufa c t ure r. 11 

* c 

9811 
-194-

:L.'h.i li .i. t II C11 

3/.:: 7 ].:ifth .hvei.1UG 

lle11 York 

V 01 . I I I , !'-~ o. 4 ----- J-:8\JS ~d1JLL::TI: ; _ __ _ _____A _)~ IL 1 2 , 19'35 

*"' >-< '** *~ '' ''' ' .. ·-< >< ·..: -< >:'"" ''"< ' **** *"' ******** * **************"'*** 

?~SOLUTI0 : 

· . .-};ffiMA..3 t he Cocle Autho~it • t)f the L;,tdies ' Hr>.n<loo.; InC' .. ustry h<\3 been 

a.dministerin; t he Code f or QYe r ,:. ~'e[1 .r f':t;ld h:,;ts h ."' G. r.'1"•)1e o··)·)ortuni t =- to 

obse r·ve the b e11efits d.erive(. under tl:.e CQc1 e :for the inclustr;, c~ nd 

. . UHEREAS tl:.e Code Autho rity· 1:n o,-:-s t h E' t '0:revious to the cJ.'Jprovnl of 

the Code, conneti tion m\S ":.10 s cad. sol e l ;r ;~- th~ e~;::~ loi t"_tiou of l C\bor 

wh ich U..l'lderu i ·-,_e d. the il1tustry oec r>1.1se of .;ro9s i neo_u a l i ties i n lr.bor 

costs , nnd 

. . i!~REAS rega rcll es.:3 of r·n-r ;1 i s t pJ.es th: ·t ~1r. ve oc en :1n.de , un·:le r the 

£,TR.A Act, ::re t to the "best o:: t:1ei:~ 1::.-wr:-letJ.:; e C'-nd ~JGl ief, the i ndustry :1.'\S 

shown a :r:-en ~a . i :-_l):r:oyenen t C.ue to the o-oerE1t io:L1 of the Code , C\nd 

rnc~~ ~s it i s ~n unque stionel:. f r>.ct tllr.t this Code has reduced 

une loy• 1e ::. 1t , shortened t~1e dail:r hours 0f , ·orl el~s, elin ine.ted child 

l abo r ·, increE'sed. r:rnges t'.S ·-:ell a s reciuced unfair trade p ractices 

ap::_J reci".bl y , therefore 

j 

BE IT ~{E SOLv....;D that the Code Author ity of the Ladies 1 Hand Ja~ J 

Industry goes on record P.S heart1J.y ~~U~)o rtin ; the President 1 s request 

to extencl the IJRA. 

The ~bo ve resolution rh .:. ch ""E\.S YJClG SOd "b:r the Cod.e Authority [l,t its 

l ast •1ee tin;; ~1r. a been s ent to the ; Jenbers of t he I;ouse of Re··)resentative 

and the Senn. t e . Ho11ever , v our Cont,;Te ss: 12.-:. aad. your Se·.1o.tor are 

an:dous to !"J.10' ~ your OlJi nion . It i s: inJJortn.nt thf1t individunl ·1enbers t~ 

of the indu3tr·: ' <"del the i r t. Y) l~ovnl to tlwt of t ho Co de Authority . i1ire 

or Dri te the Co ::; ress .:-~. l for- 7 0ur district, nnd t he Senn tor fron your 

Stnte , urginc then to s·Lnnort 'the President's re (1 uest for the e:ctensiol~ 

of URA. 

* * * 

981 1 ~8] 
lJE, 1934 

LY 

TOTAL 

--~1 95

STAriSTICS 

OiiPLi iUJC~ J i VI.3IOi; - !iAt.C ~~ 31 , 1935 ) 

Invest~e;ations : 

lTul·1be r Previ ousl y Ro 1orted 

ITu·,be r iiade ]urine; ;:tl.rch 

l\funber 1Jon Co lp1i~nce <' S8~> ?endinb 

1Tur:tbel~ Cl o ;;ed D1ll ... ill:·; 1 ;;1rcl1 

~ : e s t i t u t .L oil : 

~~420 

7 38 

85 

31 

lhmiJC:i.~ of }7 ir·1s 70 

It,J21uer of I nC::.i vic-(un 1 ::> 1o rees . 1041 

:rot r.1 AJ10un t P c.i <i 

AllJ o:~ 1F' te An oun t Pe nd.-

* * * 

i'J'JJ.Jber of i ir.~ fc C t.u r ers 

lhu~iber of Con tr'-- c tor s 

1 , 220 , 000 

~ '1f)4 , 000 

0 ' 529 ' ' 00 ~3 000 

* '* * 

W.S:b1CLY AV""'RAG-3 . 

423 , 5?1 

51 2 ' 3:.J7 

7111 , 109 

9~1 803 

8 7(: , 3,-d 

$JA , 811 ~ 22 

$16 , 000 . 00 

341 

179 

JlJ n.J.ARY , 1?35 

~E3RUARY 

4 04 ~ ' 500 

4 , 310 , 000 

2 , 41.0 , 000 

3 , 513 , 500 

:3 fOS2 , 000 

3 , 7S4 , 00.Q_ 

1 ' 02'>' 0 

302. , )00 

t) Oj , 3L,!;() 

, 08·~ 

[3 ~ 3 , \.:0 ', ~ 

85 , 71.4 

10.2 , 571 

148 , 202 

18l , J. Sl 

1 T:> , 8,3S 

204 , 016 

l 2.J , 500 

l..)l ' :. 68 

1 ~ , ?' '/ 

1ARCH 1 ?J ! r{ () l 

TotC".1 

811 

31 , j44. , :JOO 

Tot, l SticLe!' Lrbe ls .•....• 07:) , 000 

( !:."rs . ~n c:!. Ret· i1el"1) 

GR£D TOTAL ••••. . .. 32 , 3.19 , :~ 00 

* * * 

315J 
-196-

HAliDlAG .tillS ~,Oii . ".ARCH , 1 C)35 

Ads A-oDeC':tinr ii.1 the FeTI Yor 1-: Tines , .nne ric<:'.n , :;ens , ·irror, - u 

Tribune , ::Sveninc Sun, Eveni:1{; Journ<' l, 'Jorld-Telegr o.n , Post , 

3 r oolJ.yn E[1:o;le , t:'!lC~ :Jroo:.ly11 Tines- Ul1io11 

Total Nu:1be r of Ads ----205 Tot G.l Eunber of Li::.es-- <'2:1, 039 

TAJULLTl0 _~ SH0 .7riG ~UCES AJJV:SRTIS:C:O 

nder 50r to $1 . 00 to $2 . 01 to $3. 01 to $3 . 01 to Above 

0~ ~1 00 ~2 00 ~3 00 ·~ . 00 :)7 . 50 S7 . 50 

. 10 ( 1) :$ .so ( 4 ) : $l . OS (2) : $2 . 29 ( 3 ) : c'' 7. 85 ( 2.) : $5 . 95 ( <J ) • '"c ']8 ( 2) : •?v • :.J • y . .~ . ... 

. 33 ( 2) : . 55 ( 1) : 1.19 ( 2 ): 2 . 39 ( 1) : 3. 95 ( 1) : 6 . 98 (].) : 10 . 00 ( g ): 

. 35 ( 2) : . 59 ( 7) : 1 . 29 ( 3) : 2 .77 ( 3) : 4 . G4 ( 1) : 7 . 51) ( l.J):l0. 50 ( 3) : ' ' 

. 3g ( 3) : • 63 ( 1) : 1 . L1_,9 ( 5) : 2 . 85 (1): 4 . '35 ( 5): :12 . 75 . (1): 

. 42 ( 1) : . 66 ( 2 ) : 1 . 59 ( 9 ): 4

~ . , !) (1~) : 4 . S8 ( 7) : :12 . 98 ( 1) : 

. 49-(2) : • GS (1): '1 . 05 ( 1) : 2 . 93 ( J_l_ ) : 5 . 00 ( 1 5 ) : :13 . 89 ( 1) : 

: . 79 ( 6) : ·1 . 83 ( 1 ) : 3 . 00 ( 4) : . . : 15 . 00 ( 3) : 

: • J 7 ( 3) : 1. 85 ( 1 ) : : . . :15 . 30 (1) : 

: • 89 ( 2) : 1 . 95 ( 5) : . 4 , . • :18 . 50 ( 3) : .., . : • 9LI.., (7 ) : 1. ~8 ( 6) : . . . . : 22 . 50 (1): 

' . 1 . 00 ( s ) : 2 . 00 ( 6) : - : . . : 25 . 00 ( 2 ): ----- .otol J.l : 43 41 . ~-- 30 . . . 1 ..) : 27 : 

Averl'.r;e Ad Co11s1sts of 200 LL 1es 

CH.ART SHOWilJG lTUMBER OF ATIS BY GROuPS 

15 

43 

41 

35 

30 30 

18 

I 

1!1 

11 

9811 
9811 

-197..4 

Letter from Code Director showing division 

of Industry between Lea ther and Imitation 

Leather. 
-198-

EXHIBIT D. 

c 

0 

p 

y 

September 13 , 1935. 

~r. 0. W. Pearson 

National Recover;{ Administr13-tion 

426 Investment Builuing 

Washington , D. C. 

Dear Sir: 

Answering your inquiry, , the erc en ta~e of bags made 

of lea ther figur~~ : in ~ollar value., . is about fifty per cent, and 

fifty pe r cent imitation leather, i~cl~ding ll 6ther fabrics. 

Figured in units, the pe rc en ta e of bags made of 

lea ther is about thirty per cent, and s eventy pe r cent of imitation 

le a ther. 

I trust this will ive you the desire d information . 

Everybody here joins me in sendin~ our kinde st regards. 

Sincer e ly ~rours, 

(Signed) A. IIJ.ittenthnl 

AM:AS 

' 9811 
9811 

-199-

E X H I B I ~ E -------

Division of Economic l ese arch and 

Planning :Brief 
-.?':Y> 

EXHIBIT 11 E11 

NATIOtTAL !lliCOVERY ADin NISTlATION 

DIVISION OF ECG:' u~ IC RESE....PCH D :tLANNiiJG 

LADIES', MISSES' AND"CHILDRE1J'S;-HAl'JDBN7-S INDUST!tY 

Prepared by 

James P. Davis 

Approved by 

Andrew T. Court, Unit Chief 

First Edition Fe bruar~r 8, 1934 

9811 
-201-

LADIES', MISSES' AND CHILDREN'S HANDBAGS 

Number of Employees 

On the basis··af Census data supplemented by statistics presented 

by the industry, it is estimated that the average number of employees 

in the Ladies', Misses' and Children's Handbag Industry in 1929 was 

about 10,000. 

Summary 

Thi.s is a young and growing industry. Hours should be ·further 

shortened. There are a few objections to certain minor provisions. 

Scope ·and Size of the Industry 

As defined in the proposed code, the industry includes the manufacture of handbags·, pocketbooks, and purses· for ladies, misses, · and 

:hildr'eh. All materials are included, but the manufacture of pocketbooks and billfolds for ·men is not so included. 

The· industry as· so defined has in recent years represented an 

IDnual volume of business ranging fr.om a maximU}TI of about 67 million 

iollars in 1929 to about 35 million dollars in 1931 and 1932. The 

ievelopment of the industry from the first d-ecade of· the century has 

been rapid, and .it is still in an early phase of its life cycle and can 

be expected to maintain and perhaps further increase its importance. 

raken in connection with the fact that it is now operating at maximum 

~rolume of production, this condition. of vigorous growth indicates that 

this. industry should be expected to continu~ increasing employment and 

~auld readily submit to further restriction of hours for that purpose. 

The following table shows the increase in employment and volume since 

1921: 

1921 

1923 

1935 

1927 

1929 

1931 

1932 

1933 

· Wage 

Earners 

2,715 

5,518 

6' 826 . 

8,570 

10,430 

8,747 

.12,000 

12,000 

Source: 1923 - 1931, Bureau of Census. 

1932 and 1933 - Report from the 

industry. 

l • 

Value of 

Product 

(Thousands) 

$13,0·85 

32,732 . 

43,105 

57,345 

68,628 

43,147 

35,000 

35,000 

It may be noted that an average of about 7 per cent of employment 

1nd volume produced should be deducted from these figures to cover the 

production of men's pocketbooks and billfolds. 

)811 
-202-

Geographically, the industr:r is concentrated to a large extent 

in the East-New. York having in 1929, 192 establishments; Pennsylvania 

and Massachusetts, 17 each; Illinois, 10; New Jersey, 9;· and California; 

11. The total number of establish!!!ents in the entire country was about 

200. 

Employffient, Hours and Wages 

The best available figures indicate that the average hours worked 

in the industry prior to the adoption of the President's ~eemployment 

Agreement were about 48 per week . The adoption of the President's ReemploJment Agreement, giving theoretically an increase of 20 per cent 

in employment to offset restriction in hours, has probably produced an 

increase of about 15 per cent, or a total increase in employment of 

about 1,800. 

On account of the fact that most of the workers in the industry 

were receiving somewhat more than the minimu.m· set ' by. the President 1 s 

:teemployment Agreement, the increase in payroll corresponds rouf;hly 

with the increase in employment. It is believed that there has been 

no extepsive increase in average earnings. No definite figures are 

available on this point at this time. 

The labor cost in this industr~T is r e latively high because of the 

rather large amount of detail work necessary on handbags. For 1929 

the .ratio of wages paid to value added was 45.8 and in 1931 - 47.7, as 

compared with 36.4 and 36.3 in general manufacturing. In a general 

way, labor· cost may be set at about 25 per cent of wholesale price of 

the merchandise of the pr.oduct. It follows that an increase of 4 per 

cent in labor cost would be reflected in an increase of 1 per cent in 

wholesale price. If therefore hours were further shortened to 35 

producing an increase of about 15 per cent in labor cost and weekly 

wage scales were maintained, the effect on wholesale prices would be 

approximately 4 per cent increase. Since this merchandise is usually 

sold in retail trade with a large mark-up, it seems that there should 

be no great difficulty in further restricting hours, particularly in a 

period of rising prices when the addition of a reasonable amount to the 

retail price of a handbag would not be a serious handicap to its sale 

by the retail store. The only difficulty is that most articles of this 

type are grouped by retail stores into certain price classes such as 

$1.69, $1.98, $2.54, $2.98, etc. It may frequently happen that a slight 

change in the wholesale price would make it necessary to move the article 

into the next higher price class causing a much larger mark-up. One of 

the largest retail establishments in the country urged this point strong~ 

ly in the hearing. 

Comments on the Code 

The Code, as now revised, is generally free of controversial provisions and, with a few exceptions, no objection is seen to its approval 

as drafted. 

9811 
- 203-

In Article IV, Section 6 there is a p rov1s1on which contemplates 

the establishment . of classified wage scales for the industry. Since 

the establishment of classified wage scales under codes is contrary to 

to Administration policy, it would seem wise to eliminate this provition. 

In the trade practices, Article VIII, PRragraph 3, the paragraph 

prohibiting the use of misleading advertising or selling methods also 

prohibits the use of misleading credit terms. The application of this 

provision is not clear, and it would seem that credit terms should be 

dealt with in other sections of the Code. 

Paragraph 8 prohibits the payment of all r ebates and other forms 

of allowance. While there is no objection to the prohibition of secret 

rebates, it seems that the clause as written might restrict many legitimate and established trade practices. 

Paragraph 12. Recent developments have brought the uniform discount clause of trade practices under criticism, and it is suggested 

that unless the proposed clause conforms closely with the well-established practice of the industry, it might contribute further cause for such 

criticism. 

Paragraph 14. This paragraph prohibits all forms of return of 

merchandise after seven days and severely restricts returns within 

that period. It is questioned whether so stringent a provision as to 

the return of merchandise would be equitable under all conditions. 

Prepared by ______________________________ __ 

Project Supervisor 

ead and Approved by -----------------------

PD:hls 

-8-34 

811 

Unit Chief 
-204-

. ( ., 

:' • 

,: I 

E X H I B I T F 

Ste~tistics 

9811 
. 

- 205-

E X H I B I T F 

CODE AUTHORITY 

LADIES 1 HAliDBAG I NDUSTRY 

347 FIFTH AVENUE 

NEW YORK 

March 13, 1935 . 

Col. Walter ang~ 

Deuuty Administrator 

NRA , Division 3 

Commerce Bldg. 

Washi~gton, D. C. 

Dear Cbl. Ma~gum: 

We are submitting for a:oproval the budget f or: the Ladies 1 Handbag Industry as approved by the Code Authority at a meeting held ·March 7, 1935 at 

the Hotel McAlpin, New York. 

Period 

Amount 

Labels 

Present 

Bu<Le:et 

9811 

This budget is fQr the period beginning March 26, 1935, and 

endi.ng March 25, 1936 . 

The total amount of the budge t is $110, 641. · The budge t is divided into two neriods -- one fr·om March 26~ · 1935 to June 16, 

1935; the second from June 17, 1935 to March 25, 1936. 

The rate of assessment if one-fourth of one uer cent of the 

sal es of the members of the industry. 

The total volume of sales for the industry is estimated at 

$45 ,000,000. The total income from assessments at the rate of 

one-fourth of one· ner cent should amount to $112,500. 

There will be no change in the urice charged f Jr lab els of 

$2.50 ,er thousand, since the total rice paid for the labels 

is credited at the end of the month to the amount of assessment 

due. In the case of the ma~ers of low uriced bags , the amount 

uaid fGr the labels during the month should exceed the amount 

of the assessment due, in which case the diffe r ence is r efunded by allowing a credit on the next ptir chase of labels, or by 

check if requested. In the cas e of makers of hi gh nriced bags, 

the assessment generally amounts to mor e than the amount advanced for labels, in ~hich case the difference is uaid to the 

Code Authority. 

The present budge t exn ires on March 25, 1935. The budget was 

estimated at $133,540, and the method of ass essme nt was bas ed 

on one-third of one per cent of volume of sales which it was 

estimated would be $45 ,000.000. The Code was effective March 

26, 1934 but the use of labels was not made effective until 

July 2, 1934. During this ~eriod no income from assessments 

was available for Code work so that the activiti es of the Code 

Authority were necessarily limited and very little exuense was 

incurred during the first three months. 
- 206-

Amount of On the basis of sales figures as reported un to January 31, 

Assessments 1935, and estimating the sales -to the end of the bud~et 

period, March 25, 1935, the total assessments due from members of the industry will amount to about $115,000~ 

Comparative 

Budget 

Figures 

.AM:R:AS 

9811 

The amount a~tually e:>:pended for Code worlc up to January 31, 

1935 plus the estimated eY.penses to the end of the budget 

period, March 25, 1935, will amount to about $73,000,. 

leaving a surplus of approximately $42,000. The Code Authority passed a resolution to distribute, at the end of the 

budget year, March 25, 1935, $30,000,00 of this surplus to 

the members of the industry in proportion to the amount contributed by each member to the Code Authority during the 

budget year. . 

The balance of the surolus amounting to abo.ut $12,, 000. will 

be allowed to remain with the Code Authority so as to 

insure funds for the continuation of Code work. 

The new budget, from March 26, 1935 to March 25, 1936, is 

to be $23,000. less than the old budget from March 26, 1934 

to March 25, 1935. 

The rate of assessment is reduced from one-third of one 

per cent to one-fourth of one per cent. 

The method of assessment will remain the same, being based 

on the vclu-me of sales, to all members of the industry 

alike. 

The price of labels will remain the same, $2.50 a thousand. 

The method of ~ssessment will remain the same -- the total 

amount paid for labels will be credited against assessments. 

(Signed) 

Very truly yours, 

.. CODE AUTHORITY 

LADIES' HA1TDBAG INDUSTRY 

A. ittenthal 

A. Mittenthal 

Code Director 
0 p y 

ol . Walter Man'gum 

eputy Administ~~to r 

ommerce Bldg . · 

ashington, D.C. 

ear Col . angum : 

-207-

EXHIBIT F 

CODE AuTHORITY 

LADIES 1 _ HANDBAG HIDUSTRY 

347 FIFTH AVENUE 

NEW YORK 

March 13, 1935 

.· . 

. '• 

transmit herewith for your aunro~al·. the buaget for this Code Aut hority 

rom the peri od a~ch · 26', 19 5 endin . ·March 25 , 6~ together with copes of the resolutions uassed by the Code Author ity. 

~is budget ow~ ~ s~bstantial E( ~cli o~ over that o'f t _he ureceding one • 

. here are but one ·.or two it ems to which I lt y~ i't necessary to draw 

our special att~ntio~ . · The firs·t i~ "Ha~dbags Purchased - $200. 11 This 

od~ Authorij;y has. frqm time to. tim~ fo~~ t~ p. ecessa~y to -pw.chas e bags 

dvertised and displ~yed in the stores, so that they way check sources 

f supply and c~rb: wher~~er found_ necessary, unfai~ adve~tisin~ stateents made by various_ outlets. . : . . .. 

he second are 'two . items of $500o'. ea~ : f~~ "Statistical Workn, and 

1'rade Developin<:nt .' and Re s earch" • . Tpi s Code Aut;hori ty h_as during the 

ast twelve months be 3n nd avorin~ to get together · a nicture of this 

ndustry t o t he end that in~ustry migh~ ~ter ~ow it~ lf, and n ossibly 

herein find the answer to some manufacturing and dist ributive problems 

hat have troubled them for so long . A good start has ~~ ~ made, and 

feel that this ~yne gf work should b~ enGouraged • .. 

aking the budget as a whole, it meets my entire approval. Each item 

n it has been carefully ~ei gh ed and I think. the Coje Authori t y is t o 

e com e~d d for the care with ·which t hey have auuroachcd t his imuortant 

tter. I therefor ask your appro~al of it. 

Very ~ruly y ours , 

wP:E :A (Signed) 0. W. Pearson 

o •. W. Pearson 

, A~ini s -tzra:ti on ,M~rn r 

Code Authority L~dies 1 Handqag ~ndustry 

81 1 
diXHI:BIT F 

:BUDGET 

COD"E AUTHORITY 

for the 

LADn~s t HANDBAG DUSTRY 

*** 

l. Title of Code Authority: Code Authority Ladies' Handbag Industry. 

2. Address: 347 Fifth Avenue, New York, lJ. Y. 

3. Budgetary Period: From March 26, 1935 to March 25, 1936. (12 Honths) 

(If the NRA is not e-rtended by Cnngress on or ahou.t June 16, 1935, 

the budget will_ be effective to that date only.) 

4. "Effective Date of Code: March 26, 1934. 

5. Assessments are based on 1/4 of 1% of the sales of manufacturers and 

manufacturing jobbers. ·. Contractors are not assessed. The sales for 

the industry are e·stimat.ed at $45,000,000. At, the rate of 1/4 of 1%, 

the assessments wil~ amount to $112,500. 

The rate of 1/4 of 1%· mentioned above appl.ies to the · new budget for 

the forth-coming year. This is a reduction from the former rate of 

1/3 of· 1% in effect throughout the first 'year of. oneration. 

The method of col1.ecting the ass.essmerrts is as follows: Labels are 

sold to the manufacturers and manufacturing jobbers .at the rate of 

$2.50 per thousand labels. This total amount io credited as an advance against the assessments. In the following month after nurchase 

of labels, the :;,anuf'actur'3r r eoorts· his sales at 1/4 of· l%, . aonlies 

his advance credited: to him at: the time of purchase, and remits for 

the difference, or· is credit ed by the Code Authority, denending u-oon 

whether the diffe rence· is due · to~ the Code Authority or due to the 

manufacturer. tn· the latter case, he applies this ·credit on his 

next purchas e of labels. 

The record of labels sold applicable to last year's budget is as follows: 

Estimate of Label Sales from March 26, 1934 

to June 18, 1934 (date of first sale) 

Number of Labels actually sold from June 18, 

to January 3,1, .:1935. , . 

Estimated February 1, 1935 to March 25, 1935 

Total Labels f,or Old :Budget Period 

. ' 

1934 

10,000,00p 

25,262,200 

6!000!000 

41,262 '200. 

The estimate for the new budget for the period March 26, 1935 to 

label 

11 

11 

11 

March 25, 1936 is 65,000,000 labels. This estimate is divided into 

45,000,000 of the labels sold to the present members of the industry, 

and 20,000,000 to be sold to the two ~ew grouns, Imitation Leather & 

9811 
- 2C:1-

ovel t ies Industry, and Shopnin ~ Bags, Bathing Bags, etc. Industry. 

hich are soon to be included under the administration of this Code 

uthority. 

OTECTION OF F~~S: 

(a).Designation of the person or persons who will rec eive and account 

for all funds. 

Answe r: Executive Director, Compliance Director, Tr easurer and 

Secre tary. 

(b) The giving of adequate s ecurity by him or them. 

Answer: Adequate bonds. 

(c ) The s egregation of Code Authority funds from all others, s enarate 

bank accounts being ne ce ssary. 

Answer: Funds ar e denosited in t wo banks and those deposits are 

mad2 up of Code Authority funds only. 

(d) The keening of accurat e records or record s and disburs ements, of 

amounts l evi'$d, of amounts receivabl e , of amounts payabl e , and of 

commitmen+,s. 

Answer: Compl ete detail ed and accura ~e a cc oun t ing r ecords made of 

all income and expenditure s. 

(e) The submission of periodic norts to NRA, 

Answer: Monthly audited statements by independent outside firms 

of Certified Public Accountants submi t ted to NRA. 

(f) An annual audit by indene ndent outside comnetent age ncy. 

811 

Answer: Annual audit made hy inde pendent out side firm of Certified Public Accountants submitt ed t.o NRA. 
- 210-

If assessments are based on classes of establishments, erplain the basis 

of classification and indicate the n· ... ,.;r."be r of es tabl i shme;nt s of each class: . ~ . ' 

Assee sment s are based on ~. sa::.e c; of manufac turers and manufa9turing 

jobbe r s of ·ri:· 5. c!l r,h e re 8 l.'e ar.r[!ro.r.:.:.r.,,'3 ·i: F- l y 285 conc e rns. Con tractors, who 

numbe:(' a ppr·.;:d .nc-.ts:::.;l 1 '?5 1 are not ac;..;;l;s:;edo 

GenerRl nforw~~~on~ 

a . '-U:,lJe: r:· ~ .:>::; ·.cblishments in InC.l.'.st:"'y 

b,. N;"m'be-:." of es ~bli b~e nts toLe C888ssed 

c. J.liusnl:· e r: 

d. .f!J '' 'r L - · J. C~. 

of e Gt<:..!:,lis1.r.nen'Ls w~.~..!.d'!. t1a··1·? '?ti. .i assessments 

sa:. e s .for ·.L :· ·~( 1.1_, -1 c;3f.5. 

500 

325 

325 

$35 ,000,000 

e . Am -...ul ~ of r.::t ... es 01.1 wnic.h .s. ·::> sf:s.!r-lent :s hCl. V'e been 

coll ate 1 tJ a a t e 

f. Vo:_lJJ!l 3 cf sal e. .:i. on. 11;·t.·ich £-ssccJsoents will be 

colJ ecte,J 

g . Num el.~ c;f em":lloyee~ as r/" D: o:.r-:·,>-::(' 3.,_~ 1935 

h. Totr:l 2.n:m.:..al a;;--:~::i~ fo : c.~.ox ···~'~r f o:· 193·1-1935 

i. Geogr:'.L:Jh ical d L o t.::i lmtio~1 of wanl.i~ .·~ ·. l·.rers: 

Sc.•.l a s vo h~1e .for tr.:;; re .··~ ~ 8ta·ding March 

and sr. d.::.!'lg JlecRrr;~,e:c 31 , .L ~~ ~~ l.J'::tsed. on r euorts 

qy mar..u.£ac ·c1:.r ers ·:xp to J2 nu.s .r ~r · 3:.:., 1935 • 

.Area 

'Eastern 

Southe r n· 

Midwestern 

Pacific Coast 

Explanation : 

.. Total 

Ne t ~i3 les 

$23 7.c·; 3 : LSO 

60i. <.31 

l~ Z~~ c; '1 JO 

22E::. C:43 

--------

. 'j . 

$26,093,664 

$ ·7,000=000 

15 ~000 

$' 9,000,000 

26p 1934 

submitted 

9lo50 

2 oSt.J 

5 ., 33 

bl 4 8? 

. 100.00 

Eastern- - New Yor~, Massachusetts~ Connecticut, Rhode Island, 

New J ers ey, Penns;/1 van ta-

·southern- - - - Maryland, Vir inia , Flor ida, e~as 

Midwestern - - - Illinois, Wisconsin, Missouri , Ohio 

Pacific Coast - Washington, California. 

9811 
- 211-

EXHIBIT F 

EPUBI~ A 

SALARIES 

Time :Devoted Salary Annual 

Executives · · Position to Position per 17eek Total 

$10,400 .00 

$10,400.00 

$ 5.200.00 

$26,000.00 

;r. A. Mi ttenthal - c:1ief Executive Director :7ull TL~e 

Hr. 1.1 . Berkowitz - :-:irector of Compliance n 

:r. H. S. lf.osessoil ::~c-..:t. tive Secretary 11 

Tote~ :,:;:ecu ti ve Salaries 

Clerical 

R. A. Segner, Sec' ~' · to Compliance Director :E\.1.ll TiL1e $25. 

C. Praters Boo_cke ener tl .31. 

P. Cohen Asstt. :J: j:-p r. & Statistica l tl 18. 

H. Feller Steno e; .:- ~J~ le r & Statistical tl 17. 

E. Levine St 10 [; ~'-:~:uer II 19. 

D. Uohlfeld Steno . ~ Tel. Ope r at or II 18. 

A. Sosansky SteJ.1ot;r ~>.~:- :1er II 23 • 

Y. Grod.zinsky Stei1ogro.,pher II 17 • 

J. Brodkin L2.bel Cle rJc ll ~ 

Tot~l Clerical Salaries $188. $ 9,852.00 

Co'Ilillents on Clerical Sc.laries: The above sched.nle contenplates an 

increase of three ctoll.:.rs per week for all clerical enployees. 

These employees· ':7ill h2.ve been wi th us mor~ than ,one. year and will 

be. enti tl~d to such i n_c rease. 

. . The Exe cutive Secr eto :i.~' r e ceives $5000. pe r annum c.t the pr'esent 

time even though tl1e intention was to pay him $5200. per annum. 

This will t ake effect st.:.rting with the new budget. 

Investigators: 

L. Me rzbach Cl1ief L1vestigator §0.11 Time $60. 

D. Sobel I nve -· ·i; i c;t"'.t or II 40. 

H. Rosenbe rg I nv:J st i gc.tor II . 30. 

I • Schor I nve sti::;<:1.t or II 27. 

One additional I nvestic;e.tor II 40. 

Totcl Investigators Sn.l a ri es $197. 

Comments on ·I nvest.i;:c.tors-1 Salar.ies: The above scl1edule 

contemplates· the :Zo·l lo':Ting .increases: 

L. He rzba ch $10. 

H. Rosenberg 5. I. Schor 5· 

$10,324 . 00 

The first two will i1c:.ve oeen with us a year ancl 2.re fully experienced. 

Hr. I. Schor is non i1ireC::. a t a trial ~al ry a t $22 . 2.nct ao soon as he 

is experienced, he Hill be gi ven his inc rease. 

Totnl Salaries $46,176.00 

9811 
-212-

EXHIBIT F 

"EXHIBIT B 

REGIONAL OFFI C"SS 

Provision is made in the budget for regional offices to be set up and 

funds to be alloted as follows: 

Chicago 

Pacific Coast 

Total 

EXHIB~T C 

LEGAL FEES 

$ 3,000 

2,000 

$ 5.ooo 

The budget contains no provision for legal fees. 

EXHIBIT D 

TRAVELI NG EXPENSE. 

Members of Code Authority 

Payment is made on the basis nf exnense vouchers submitted by such 

member for each indi·vidual trip. 

Employees 

Mr. Sobel, an investigator, r eceives $4.QO per day for out of town 

trips to New Jersey, Pennsylvania, New York Statei Connecticut, Maine, 

Rhode Island, Maryland, Virgi.nia, etc. This figure will have to be 

increased to $6.00 ner day to reimburse him for pro~er eXPenditures. 

All other employees, and Mr. Sobel, when in met.ropoli tah area, . are 

naid for traveling eY.Tienses on ~he basis of exnense vouchers submitted 

by each individual. 

Approval 

All exnense vouchers must bear the .signature of the recinient of the 

money, and the apnroval of the following: 

9811 

and either 

or 

Mr. M. s·. Mosesson, 'Executive SecretH 

Mr. M. Berkowitz, Director of Complil 

Mr. A. Mittenthal, Executive Directol 
- 213-

E.iG!IEIT F 

EXHIBIT E 

COl.iPLIANCE 1nJNCTIONS 

Salaries 

4r. Berkowitz, Director of 

Cor-1p liance 

Kiss Segner, Secr r to Dir. 

of Camp . 

Miss Grodzinsky, Ste c; c:. her 

Investit;ators 

!r. L. Merzb ?..ch, Chief 

~.I r • D. Sobel 

\ir. H. Rosenberg 

Mr. I • Schor 

One additional 

Handbag s Purchased 

$25. 

_n. 

$42. 

$60. 

40. 

30. 

27. 

40. 

$197· 

Regional Office E~ ense (See Exhibit 

Traveling Expenses (See E:d1ibi t D) 

Employees 

Total Com:pli['..nce :G\1.nctions 

9811 

March 26, 1935 June 17, 1935 

to to Total 

June 16, l 9V5 I:a r. 26, 19~6 

$ 8,057· $10,400. 

$ l, 705 2,201 

$ 2,324. $ :9,000. $10,324 

$ 50. $ ' 150. $ 200 

B)$ 2,000. $ 3,000. $ 5,000 

~ 1!800. $ 4!100 ~ 62~00 

$ .01~ $25,612 $~4.625 

CODE 4YTBORITY I.epu;s' He\NllBAG UUJU~'l'.lU 

~ ISSUED TO JW"'.BAG M4NJ]FACTURERS. IU.NIIB.A.GS PUT IN WORK. AND :BALANCJS OF I,t\:BELS ON BAND AT HA.NllBAG WUJ'ACTYRERS AT ....., m:n;um OJ' !.ABELS ~ ~ _ _ __ .... EXHIBIT D. 

JUNE 121 1~~4 TO FEBRUARY 28 1 1~~~· 

Balances of 

Labels On Hand 

Handbags at Handbag 

Labels Put in 14aml.facturers at 

Issued. Work. Februar;r 281 1935. 

Location . 

New York City . ...... ...•.. · • · • • • · • • • • · • · • · · • • • • • • 9.556,000 7,475.610 1,520,112 

Upper New York State •••••••••••••••.•••••••••••.• 4,342,000 3,453,994 1,026,924 

Maine ••• .......................................... 2,000 2,000 

Massachu et t s • ••••••••••••••••••••••••••••••••••• 3,114, 000 2,281,073 553.570 

Rhode I slan.d • •••••....•.••.••..••.•..•.....•.•••• 142,000 121,000 21,000 

Connecticut ••••••.••••••••••••••••••••••••••••••• 3,133,125 2, 671,069 503,056 

New J erse)",. •••••••••••••••••••••••••••.•••••••••• 3,719,700 3.360,381 394,068 

Penns7l vania . ..•..•..•••.••••.•.••••. • •....••••.. 2,676,000 2,308,886 9~9.082 

Macy l an.d • ••••••••••••••.••.••••••••••••••.••••••• 229,000 150,000 79,000 

Virginia••••••••••••••••••••••••••••••••••••••••• 110,500 70,303 40,197 

North Carolina ••••••••••••••••••••••••••••••••••• 2,500 2,500 

Florida . ..•••••.•.••••..••.••.••••......•..•.•... 76.500 65,000 11,500 

Ohio . .••••••••••••••••••••••••••••••••••••••••••• 17,500 8,272 9,228 

Illinois •••••••••••••••••••••••••••••••••.•••.••• 584,000 457,785 126,215 

Wisconsin •••••• •••..••••••••••••••.•.•.•••••••.•• 207,875 173.923 33.952 

Mi SSOllTi •••• ••••••••••••••••••••••••••••••••••••• 260,000 175.912 84,088 

Texas•••••••••••••••••••••••••••••••••••••••••••• 18,000 6,699 11,301 

California ••••••••••••••••••••••••••••••••••••••• 139,000 81,373 60,627 

Washington ••••••••••• •••••.•.•.•..•.••••••••••••• 25.000 18.258 6.742 

Total ••••••••••••••••••••••••••••• ~ •••• 28,354, 700 22,879.538 5,475,162 

StJ¥MA.RY OF LABELS ISSUED AND PERCENTAGES ACCOBDING TO ARE.!\. 

Area Labels Issued. 

New York City ••••••••••••• 9,556,ooo 

New England ••••••••••••••• 6,391,125 

Middle Atlantic ••••••••••• l0,737,700 

Southern.................. 436,500 

Mid-Western ••••••••••••••• 1,069,375 

Western................... 164,000 

28, 354.700 

MONTH OF FEBRUARY 1 1935· 

Handbags 

Labels Put in 

Issued Work. 

1,045,500 823,970 

430,000 487,370 

252,000 234,760 

23,000 15,000 

296,000 295,831 

478,500 494,431 

400,500 727,081 

1,000 

15,000 

500 

12,000 12,000 

3,000 

67,000 61,801 

14,000 20,376 

30,000 23,000 

4,000 2,000 

14,500 10,173 

6.ooo 2.251 

3,092,500 3,210,050 

I 

1\) 

..... 

'f 

llaJndacturer. 

Jlew York 

Total . 

Mar.26,1~34 

to 

.lpr.30, 1934. 

:&XB rsrr c . 

REPORTED DUBIIIG '1m n:RIOD JUD 10, 1934 '!'0 n:BBUABT 28, 1915. 

IU,y, 

19J4. 

June, 

19J4. 

Jul.T, 

19J4. 

.&.ue;u.at, 

19J4. 

SGptember, 

19J4. 

October, 

19J4 . Novemb,.r, 

19]4. 

December, JanWl%7, February, 

1934. 19J5· 1935· 

Cit7 • • • • • 12,091,814.oo 1,6~.879·00 1,267,720.00 706,038.00 4o3.994.oo l,423,oo1.oo 1,4o1,661.oo 1,6oo,252.oo 1,987,893·00 1,202,8lg.oo 447.564.00 3,993.00 

Uvoer lfew 

Torll: State •• 

!iaeaaclmeatta. 

Connecticut . • Bhoda bland • 

Bew .Tereey • 

Penn871"n1Il1a . Maryland • 

nortd&. • Ill1no1e •• 'fisconatn. • lilaaourl •• 

'faahlngton • Cal1torn1a • Virginia. •• 

Texas •••• 

Ob.io • • •• 

Total Vanutacturera 

Iat Salaa 

~aeaa•nt 

ot 1/3 ot 1~ 

per Exhibit ll 

Buaber ot Sa1ea bporta 

Received ••• 

Total IWlutacturera 

Ret Salea. 

laaeae•nt 

ot 1/3 ot 1-

per .bb.tbit B 

lfUIIber ot Salea 

Reports Received 

2,956.929-00 

3. 332 .161. Ql) 

2,194,1330.oo 

115,981.00 

2,234 ,1!!4.oo 

2,789,Eo5.00 

308,363.()1) 

66,25§.00 

812,137.00 

36~,450.00 

35 ,202.00 

38,271.00 

216,374.00 

255.7)2.00 

7,5()2.00 

29 ,055·00 

93 .889.66 

2,on,2~.oo 

6,910.78 

4o3.552-00 289,352.00 197,331.00 61,680.00 ~,237.00 264,728.00 ~,26].00 a!6,071.00 

4oo,sGo.oo 327,651.00 235,o8o.oo 139,054.00 ,463.00 512,46o.oo 5,837.00 6,545.00 

310,2 7-00 280,432-00 18G,196.oo 65,4oo.oo 273,572.00 309.448.00 263,165.00 272.372.00 1~.488.00 12,37G.oo .685.00 ,,873.00 10,295-00 16,918.00 21.3a~.oo 13,085.00 

25~.674.00 253,01 .00 186,145.00 !! ,21~.00 207 ,o62.oo 234.594.1)0 ~47.6 5·00 ~3·oo4.oo 36 .555-00 193.120.00 95.27!.00 90,76 .oo 272,569.00 314,61';.00 72,551.00 5.635·00 

41,192-00 32,318.00 ~3.231.00 3,944.00 21.a16.oo 31.765.00 43,l366.oo 44,439-00 

9,866.00 6,~.00 6,~.00 7.349.00 2, 97·00 7,122.00 10,138.00 

86,J04.oo 63. .oo 38, 7.00 23,6111.00 83,783.00 111,230.00 156,063.00 130,674.oo 

24,210.00 13,s~.oo 6,619.00 15,349-00 ,9.882.00 46,117.00 75,111o.oo 63,070.00 

23,030.00 25 ,8 .oo 17,103.00 16,575·00 7 ,65t.fl0 53.295-00 66,645.00 48.5~9·00 6,925.00 9.267.00 1,G12.oo 1,168.00 4,035·00 4,002.00 5.0~.00 3. 781.00 

31,221.00 16,635.00 1,, 96.00 11,830.1)0 21,4o2.00 28,143.00 39.535·00 22,732.00 

82,932.00 68,863.00 1 ,127.00 2.797-00 10,753.00 19,617-00 23,6ol.OO 21,266.00 

966.oo 52Q.oo 292.00 101.00 1,008.00 1,364.oo 1,972.00 845.00 

518.00 3.9132.00 4,239·00 6,53!!.00 9,0]4.00 

12,329-77 9,46s.o6 5.803.18 3,144.47 10,711.71 11,204.4o 14,097-<'8 

273 272 282 282 302 311 303 

~D DtlBIIfG TIB IIIORTB 0~ :RB!IIJAR1' 1 1935· 

112 1 10J.OO .95Q:.QQ 4o].OO 5oJJ6.oo 1,100.00 2,396.00 9,16o.oo 81,321 .00 

3]3.68 3-17 1.35 17·79 3·67 1·99 30·53 291.09 

13 1 1 1 1 1 4 18 

SUWART 0~ .IP.T SAL!S REPORTl'!D BT IU.HDBAG liAJ!Uli'ACTURJ:RS ARD PERCENTAGES ACCORDING TO AREA. 

.t.rea. 

New Tor~ Cit7 • , 

!lew lngland • • 

ll1ddle Atlantic 

Soutb.ern .•• 

llid-'festern • • 

Bet Salas • .12,091,814.00 

5,642.9]2.00 

• 7,980,718.00 

• 637,855·00 • 1,558,894.00 

lt2.:J~ 20.03~ 

28.33~ 

2.2~ 

5·53~ 

412,672.00 145,039·00 

J08,669.00 58,680.00 782.00 

135,6o6.oo 95.39<'-00 

3,620.00 6,280.00 

17!!,836.00 176,466.oo 531.00 

371,154.00 149.364.00 4o,o~.oo 14,207.00 

6,3 .oo 9,020.00 

79.298.00 3~.2U.oo "5,026.00 2 ,1 .oo ~5.36o.oo 10,120.00 

~5·00 1,497.00 

22, 1.00 8,839·00 

11,171.00 

434.oo 

4,704.00 

271 

664,190.00 1,184,959·00 5,3Q6.oo 

2,213-97 3.949.86 17.68 

68 192 3 

muaber 

WilU'l' Jl, 

S'Pllld.tte4 '1 B'Julllbac II¥P'•atur.ra. 

Wee I BR4ecl 

IM;lber of Per a one ltlmploxech Metropolitan Be• York ••• Other C1t1••· •••• 

o~ Repone 

Reoe!Yecl.o 

Total • • • • • • • • • • • • hm'bar of Hours ·,orkech 

Hetrapolitan New York • • 

Other 01 tiee• • ( Tota • • • • • • • • 

!!o,gee h1<h 

lletro;,:lo 1 c.n .li~t 

Other Ci 1 oa. Tot.al • • • • 

Total. • )Q6,190 

·~·15'2 

. . 1F 

0 l· 

1,909 1,88' 1,867 

!:~1 1:ih ;:m 

63,124 6S,6S6 66,897 

1~ ·~ 1~z~~ ,~1 ·a"\' 2 Z•5 r2,9 2 6, 26 

QJAjSlJIIC•'U'IOI Ol P£!R30BJ ~L~ • .lie po an Other 

Ocoupation. ~otal. ]few York. C1t1H• 

Cutters . . 4r, Cl1oker~ • • • • • !'arers • • • • • • 84 

Pocketbook ~kere. • 364 

Helper•· • • • • • • • • • • • • • 745 

Cementers. 464 

Opera tore. , • • • • 1 • 704 

Turner•• • • • • • • 365 

Jfractertt• • • • • • • • • • • ~)7 

~xaro~nera and Paokera. • • • 547 

General Helpere. • • • • • • • • • 1 • 344 ~on-M~nutaoturing Employee•• • 475 

Crochet Beaders. • 50 

l'ri.mmero1 • • • • • • • 1 35 

Tacers • • • • H:.,nd Seware. • • Pasters ••••• Stone setters. • • • • Sample Uakers. 

Bag Asaombler~ • • • • Creueere • • • ..mapper,., • .clmboaeera. 

,n . . . . 'l 

13~ 

29 

175 

273 

3u 

20 

166 

1.3() 

358 

2~ 

6 

91 

1~ 

B 

323 

53 

,~~ 472 

411 

1 ,)36 

345 

331 

417. 

986 

270 

2 

129 

35 

20 

42 

12 

~2 

3d -,~,~· _...:._--== 

1,84~ 

~·211 ,o;& 

6 3· 101 

1it,129 

2 ,830 

II umber 

liOYember, o~ Reports 

_30!._ - Reoe1Te4. 

1,299 11 

4a22~ l;,oo --,l- total 

40,812 1 ),647-'-

15),290 

194,102 _..11, ~ -M.i.O 

Total. 

Sllbm1tte4 ~Hand~ Qont~Ol!• 

W e e k • E n 4 .-4 

TOYelliber, Jllovaiber • lfOveuiber...--woTembir, 

3• 10. tz .. ~4. 

68 97 94 100 

142: l9S: ~~ 124 

~2 224 

2.132 2,872 2,891 _ _s.1at- -Z..a3~ - 6..§.30_ _ 

6'~ .. __ 7.5 l _j..Q...ll2_ __9_,~L 2aZ02 

loT ember, 

)0. 

81 

166 

242 

2,~0 

i:ds:~ 

I 

~ 

'i' 

(Includea Co~l1ancea Rece1Yed u~ to ~et 

Total. 

New York: C1 t;r • . 170 

Unper lew York:. 3 

Penne;rlYA!l1a. 9 

Kaeeachuaette 16 

Ill1noh. . 13 

lew Jerae;r. 12 

California. ' 11'1acofte1n " nor1d& • 1 

Maryland. . 2 

Virginia. . 2 

CoMect1cut • 3 

ut .. our1. . 3 

Washington. 1 

Bhode bland. . 1 

Ohio. , 

.. Texaa 1 

Maine 1 

Total 252 

---

9111 

CODE .6.0'l'RCII1TT L4DI:!"S • ILUIDBAD Ili'DlJSTRT 

STAXIST ICS - JOLT ]1, 19]4. 

UHIIIIT C. 

lllnLBER OJ' COMPLIC.A.NCJ:S ~J:IVED 

16, 1934). 

Manufacturers. 

134 

3 

g 

12 

13 

12 

9 

3 

1 

2 

2 

2 

3 

1 

1 

1 

1 

208 

= 

Manufacturer• • Retailer• ••• 

Total 

SCBEDOLJ: 5. 

Manufacturers 

and 

Jobbera. Jobbera. hmort ere. 

15 18 3 

1 

2 2 

1 

1 

1 

17 24 3 

= --- ---

IIUim!ll OJ' LAlllL SALES TlWISACTIOBS 

SCBJ:DUIJ!! 6. 

June 12, 1934 

to Jul7 31, 1934, 

370 

201 

511 

Yontb of 

Ju}J', 1934. 

242 

192 

4]4 

~ 

181 

3 

10 

16 

14 

15 

9 

5 

3 

2 

2 

3 

3 

1 

1 

1 

1 

1 

271 

====-

~&~lOB OJ' J'&CTORIIS 

SCJD:IroLI ~· 

Own State. Other Statea. 

162 19 

3 

10 

16 

14 

14 l 

9 

5 

2 l 

2 

2 

3 

3 

1 N 

1 

1 ~ 

1 \ 

1 

250 21 

= ---

CD 

"" .... 

.... 

gmw mmmxu HPJ:II• ''F"69 'llllllmt 

--~~~~--------------~~~~ ~~~~~~~------------------ ~~~--------------~S~u~b~m~l tted b~ __ Contractore~ Jfuaber lhulber 

of Reporte of Beporte 

Reoe1Ted, Reoe 1Ted , 

la8ber of Per1on1 ._ployed t 

Ketropolltan Bew York , Other Cltlel, , , , , • Tot al • • • • • • • Jfgber of Hour• Workedt 

Ketr opolltan Iew York • • Other Cttiee ••• •• • Total • • • • • • • • 'IJ'agee hidt 

Ketropoli tan Iew York 

Other C1t1ea, • , • • • ro tal • • • • • • • • 

Oocu atfon, 

Cuttera . • . . . Clickera. . t I t . Par ere, . . . . . . Pocketbook Kakere . . Helpers . . . . . Cement ere . . . . Ope;ratore . . . . Turner a . J'ramere . . . . . . . Jb:aminere and Packere 

. 

. 

. . 

. 

. . Oeneral Helpere· • . . . . . Ion-Manufacturing Employees Crocket Beaj!ere Tr bill ere, . La cere . . . . . . . Han6. Sewer a . . . . l-aetere . . . . . . Stone S11ttere . . . Sample Kanre . . . . . Pattern Kakere. . . Patcher . . . . . J'raiDe CoTerere. 

Mountere, . . . . . . .. . .Y1nnere . . . . . . Poliehere . o I • 

Aeeemblere. ·. Total . . . . . . . 

. . 

. . . 

. 

. 

. . 

. . 

. 

. 

. . . . 

1,647 

±Hi: 

51 , 00i ~3, 48 l-4. 482 

31 ,903.00 ~o.oo 

=t__ r.oo= 

. . . . 

. . . . . . . . . . . . 

. . . . 

. . . . . . . . . . . . . . . . . . . . 

. . . . 

. . . 

. . . . . . . . 

1,685 

~·~~11---

48,525 1~,4Z~ 1 000 

31,019.00 

-t~M3·Qo 2 ,00 

. !ota.l t. 

424 

78 

68 

266 

664 

348 

1. j42 49 

371 

463 

86 3 

359 41 

114 

22 

84 

37 

1i 

8 

1 

22 

8 

3 

3 11l -6,07 -=-

1, 592 570 

5:~1~ ·~~; 

39,431 18,949 

~~ 1iQ,Z~2 ~9. 1 1 21Zo1 

26,o45 ,oo 10,28A.oo 

M~--H:13?:gg 

Metropolitan 

__ New Y!)!:k 

103 

10 

16 

, 35 

217 

39 

3~A 

118 

121 

307 

167 

3~ 

50 

5 

3 10 

3 1 

10 

8 

3 

3 

1~ ~ ~ 

Other 

.....Q.U!!.~.J 

321 

68 

52 

131 

447 

309 

989 

331 

253 

342 

556 

192 

4 

106 

22 

34 

32 

6 

5 

12 

4,212 

109 107 104 

___2_Q_ 100 102 

-122..... 207 J9E 

3, 058 2,990 ?. , 880 

g:~~ t .. 44?._ i·l82 4J2_ 62 

. 1,273.00 1, 435-00 1, 331 .00 

__hB'l.OO 1 311 .oo +.#o .oo -0~ 2 746,0.£... 2 7 _ _1 .oo 

77 

i8 ~ 

2,283 

6:~8t 

918.oo ], 4~,00 

2 4 00 

STATISTICS C 

BWDber 

ot Rl!port 

Rec 1Y d...!-

To tal • • • • 

..!.!£.ea Paid.& 

etropol1 N 

Other Ci t1ee 

To tal • • • • 

York •••• 152,229 •••••• _2_~9_3..4_ 

••••••• 395.1~-

--

.s;J.JI. 

Ooou,Pa_1_1on. 

Cutters . Clickers . . . . . . . . Parers . . . . . . . . Pocketbook .Male ers . Helpers . . . . Cementers . . . Operators . . . . . . . . . . . Turners . • . . . . . :t'rsmera . . . . . . Examiners and Packers 

General Helpers . . . . . . . . Non-.Manutaoturing Employees 

Crochet ~eader.'! 

Trimmers . . . . . . . . . . . . . Lac era . . . . . . . . . . Hanu Sewers . . . Past era . . . . . . . . :>tone :.>etters • . Sample .M~.olcero 

Total . . . 

. 

. 

. 

. 

. 

11. 

1,)26 

.h3ll. 4,717 

44.755 

112,659 

157r414 

:as .988 

41 ,871_ _]6,859 

~lF lCA TI ON Ob' PI:.:R:.>ONS 

to tal. 

363 

uO 

o2 . . 2)1 

u11 

317 . . . 1 ,146 

.)21 . . . . 43U 

3l>6 

729 . . . . )u4 . . . 34 . . . • 104 

26 

90 . . . . 71 . . 3 . . . . 34 

),430 

EXH!BIT e• 

eke ... ~pded. 

A~"'!_Bt 18. hU£.l!ll~ A~ t 31· 

1.432 1,!)16 1,~ 

.h!Z2 3 I 411 - .l.t_3_66 4t91 1 4,927 4-;810 

50,180 

121.598 

171.778 

)2,!)26 

g~:U~ 

a.;l't.,OYJ!;D. 

122 51~8 4 

E4• 

.Metropolitan New ~ark. 

114 

4 

~l 

132 

210 

43 

343 

2 1 

1~e 

125 

2b3 

1~0 

34 

1 1 

t>J 

27 

3 

20 

Other 

Cities. 

249 

5l> 

41 

119 

401 

274 

803 

300 

240 

261 

446 

234 

93 

26 

27 

44 

14 

1 ,802 J,62B 

UGU§I, 1934o 

NwDber 

ot Reporte 

_R_ec~~ 

::>u 1U ~ ContraotoJ>•• 

11 

_j 

13 

120 

~6 -140 

).697 

~ 

1,696 

.1li. 

2,052_ 

127 1*-

3o774 

----1.t..c !l <L j~ 

1 ·779 

535 

2,)14 

4,251 

_j~~l _z,;44 

1 .960 

556 _2~16= 

2,109 

?2.5.-

2.)34 

91 

7 

1,609 

_2..5.3_ 

1 ,86:f 

I 

~ ,. 

.. .. 

... 

... 

MOI!f OY ~ J~l!• roPQ1 •e• York 

Other C'1Ue• . . . . To~l . . . . . . . l('IU Of. ~STa 1~ 4• e t ropo ta n New ork 

Ot.lier C1 t1 ee • • .. • TOtal . . • . . . . 

. 

. 

. 

. 

. ¥Pff ol. :>fe.Jam'·~. l <l~!· • l'OJ>Ol n NeW Yo r • Other Cities . . . . . To t.al . . . . . . . KO~~ Oil' ~taoo:~ 1,34. f?ropoll newark 

Other C1Ues . . . . . 'l'o '-1 . . . . . . . KOfiV O.F NO V.1!3ill.lilll 19 ~ • e ropol!Wn New YDr • O~h~r Cities. • • • • • Total . . . . . . . . ¥0if:l Oil ~a!!lH I 

e ropo an ew 1~~- Yor • 

Other C1Ues . . . . . Total . . . . . . . 1(0~~ O.Ji: iA~i.RY, 1~3~• e ropo 1 n Ne~. ork . Other Ci tiea . . To&al 

Gr&nd Total . . 

. 

. 

. 

. 

. 

. 

. 

. 

copx AYTHORITX LAl?IJ.;;.S' HAHPB'.g IIDpsfRX 

:> tAns p cs COMfiLEP FROM l'AXR9LL RhifoRTS Jux:§IVlll> FR91 W"XBEHS UV Tmi lU•NDBAG lNPU~ TRY 

BMQ.BIT lr 

S~mB~~~It ~~ at ur~ a. Sybm1t§-' ~ on'r.~lO~!• 

JnUaber A"Yeras • JiUilDer NUIIIbet' A'Yerase Humber 

of Reporu BWDber of of HOUra of Repor'• Number of at Houra Rtcehe!l. lll!p.plOYft!• 'iiOJ;ktde ·•asea Pa id. Reoe1'Y_~d· •ployeee • .,.orked. Wal .. Pa1de 

. . . . . • 111 1o466 167.330 106.807.00 1 9 •981 550.00 . . • . 1~l ~1l ~tt0-44 1Jbt~4tt00 2 

~ ~01J ·~·00 . • 4o S oJ74 24), ,-.o~ -r= 5·924 ::!, .oo 

. . • 1~ 2o391 390 ,b 10 261o,341.uv 14 138 21o 408 1o,o6g.oo . . . . ~ 41 04i 'l0J 114, ~tt226.00 , 1~1 4aJ~ 1 a22 oOQ 

•· . . . . . b,43 1, 101,9)- _ ,567.oo 15 2;,7 11 o99Jt00 

115 2,179 246,101 152o751r00 12 100 12,179 5o4)4o00 . . ~2 4a23s Z2~ 21C3 J04,16i.oo 100 14 ~2 5:1 6zo.oo ,-4 '/,11 97 ,o,9 4$6.91 .oo 17 208 26, 4 11,104.00 I 

' . . . . • 106 1o67U 22g ,632 14bo59g•oo 1.3 

__ :_~- 16,600 z.:~ 17.oo 

-..U..L Qa122 21 .uz1 376,<,19 .oo ______.) !1 4~2 ___b_.iQ_~ . . ~ 7 ,tl)O 1ol 42,)0J . '25o}J3oOO 16 ~~ .o o 9o079•00 - ---

. . . . . 103 1 ·954 341,&r1 233.005.00 12 93 14,405 /o451o00 

__JU_ _6.a-w,- 1•14t• 1 _!76,452~09_ (J 

--m- 40. t4ti 1o,~~2 .oo - 1(12.__ J!..!..J 1 1o4U ,_?J~ _j Otj. '5 ~1 ~ IJ-1 - ur- 55.53 24, J,oo ---- --

96 1 ,6oo 20),616 11 72 9o16b 4,.J'//•00 

L2 41bbb 'j_~!i! 60f 1\ 1[2 22,~oj 10,,44.-00 lbl 1>,4b!J '1 2.22 -....,...,...- 244 31, 3 14,19rOO -----

67 902 139o55!i 93· 274·00 <.!1 117 17 o172 O,J71•00 . 1n 

41 ~62 ~:i!~4( J10 ~.Jj•OO 6 

2lt 1~ ~4t .oo . . • ~.471 35.~02 40), 1 .oo ~7 - ,34.~ 14,1.oo ------

. . .. . ... _6 ,uo :2·· 200 3.2'11!10.<:?_.~0 20 1,460 !;i.~6.oo 

STATISTICS - JURE }0, 19}4 . 

pHI:BIT C. 

St»AMART OP S'UTISTICS COllPlLED J'ROII Q.UESTIORUIJI!:S SUBIIITT'IJ:D BT KDJ!l!:RS fJP Tim !UNDBA.G INDUSTRY WITH C:ERTIJ'ICAT!:S OP COYPLI.l.IICJ:. 

( I'RCLUDJ:S STATISTICS UP TO ,TULT 30, 1934) 

SCHE.DULI: ?. 

lumber of Compliances ReceiTed lro~: 

Manufacturer• Only •• . .•.••.•.••••......•..•••••••••..•.••..•......•.•......•...• , Manufacturing Jobbere Only., •••••. . .• . .•••....•••••••..••••.•••..•••.••..•.••..•• 

~u!acturers and Uaaufacturing Jobbere •••••.•.••. •••• •••• •• ..•. .••• ••.•.• . .• .•.. I.-portera ••. .............. ... .............. ........ .. ...... ...... ... .............. 

Total. •. .....•.... · · · · · · · · · · • · · · • · • · • · · · · • · · · · · · · · · · · · · · · · • · · • · · · · · · · · · · · · · · · · • · 

lumber of ractoriee by Location of 14ain Office, •••. ••••• •.. .•••..••• ••• ••••.•••.••.•• , 

lumber of J'actoriee by Location of ractotr: 

:ractoriea-Nain Office in 18118 State •...•.•••.•.•...••••.••••••.•••••••.••.•••.... Factories-Main Office in Other State e •••••..••.•••.....••.••••• , . , •••..•••••••••• Total llanu!acturere :ractoriee, .•... . ...••••••.••••••.•••••••••••••••••••..•.••• 

Contractors Factories ••••.••••••.••••••••••••••••.•.••.••..•••••••••••.•. . ••••••• 

TotAl Manufacturers and Contractors :ractoriea •••.•. . •.•••.•••.•••••.••••••••••• 

Humber of Manufacturers Accordi "8: 

A - Under $ . 50 per dozen - 1rh?leeale ........ · ................................. .. 

B - $4.51 to $!3.00 per dozen - 1boleaale ........ . ............................... . C - $!3.01 to $15.75 per dozen - Wholesale ....................................... . D- $15.76 to $30.00 per dozen- 1rholeasle ............................... .. ..... . I - $30.01 to $37 ·50 per dozen - 7hcleaale ....................... . ............ ., , :r - OYer $37.50 per dozen - Wholesale ••••...•• .. •..• •..••••••.••••••••....•••••• , 

Unite Produced: 

Spring and SWIII!Ier 1933· •• . . ..• . · · .• · · · · · · · . · · · · · · · · · · · · · · · · · · · · · · · · • • · · · · · · · · · • • • 

Fall and Winter 1933· •••• • · · • • • • • • • · • · • • • • · · • · • • · · · · · · · • · · • • • • • • • • • • • • · · • • • • • • • · • 

Total - 1933 ••.. . ....•... . ..•...•. . •....•.•••.. ... ..••.. . . .. .. •.........•.••• , , 

Spring 1934, .••.••••• •• • • • • • • • • · • · • · • · · · · • • • • • • • • · • · · · · · · • · • · · • • · · • • · • • · · · • • · · • · • 

let i~~~ated Total 1934 •••• · ••••• · .. · · ·• · · • · · • · · · • • • • · • • · · · • · · • • · • • · • • · • • · • • · · • • • • • • 

Total . 

170 

14 

23 

• 3 210 

22!3 

20!3 

20 

22!3 

~n 

327 

29 

96 

92 

112 

94 

E7 

12,396,24o 

13.5~,030 

25,~ ,2~Q 13, 14,3 9 

33.1!32,!342 

Borth 

kat em New York C1tz. uea. 

110 32 

13 1 

lS 4 

ll4J1- ---37 

...!5L --.!!L 

136 4o 

2 ___!L_ 

138 5!3 

_.ll_ _li_ 

..1QL _J_5_ 

17 10 

55 25 

54 19 

76 15 

72 9 

53 6 

!3,136,452 3,4!32,466 

9,!33~.1*1 2,*3~,646 11,91-,2-3 b, 1 ,112 

!3,!362,637 3.917,405 24,!306,!394 6,913,9!3!3 

No. of lfo. of Bo. of No. of No. of IIJo. of Ho. of Bo. of No . of 

Factoriea.Employeea.J'actoriea.!aplozeea.J'actoriea.Emplozeea.Factoriea.Employeea.Factoriea. 

Humber of laplo7eee by Location of 

IIAin Office •••. .••..•.•••••••.•••••.. ...EL 9,092 ....!5Q_ 5,10!3 ....!!2_ 2,512 ....5.. ~ _a 

IIJuaber of ~lozeee bz Location of Factorz: 

Factoriee-Main Office in Sa.e State 202 6,522 132 2,633 39 2,497 4. 169 19 

:ractoriee-Kain Office in Other States 20 2,510 2 95 ..JL 2,415 

Total •....... ................•...•. 222 -- 9,092 134 21 128 ...5L ti,912 T JJ9: _a 

ATerage lumber of :laaplo;reea, 

per :ractoey ••.••••.•••••••• , , 41 21 87 42 

9811 

South- IU~Ieatern I estern 

J:aaten uea. Area. 

J.rea. 

3 17 8 

1 

--- 18" --- 3 8 

_.,5__ ___gg_ __ 8_ 

4 20 8 

~ --- --- 20 8 

~ 

1 - 21 ---

__ 8_ 

2 

3 9 4 

3 10 6 

2 13 6 

2 7 4 

1 5 2 

148,768 6o~.020 20,534 

206,932 

195.563 

355.100 1,~:~~ 398.307 ~ 

~ 0, 57 

437.000 959.540 65,420 

Bo. of Ho. of lio. of 

J!mloteea. J'actoriea. llrplozeea. 

1,108 ..£ _ill_ 

1,108 8 115 

1,10!3 J_ 115 

58 14 

}.) 

}-\ 

....... 

811 

- 222-

E X H I B I T G 

Brief pre-pared by A. Mi ttentha1, former 

Code Director 

-223-

Prepared by A. UI TTENTHAL 

former CODE DIRECTOR 

September 1935 

The principal problems m nfronting the ladies' handbag industr;sr before the coQe, were compe tition based on unequal l abo r standar~s, ,and competition bo sed_ u:r_Jon unfa ir tracl_e practices. The labor problems were the . 

~esult of the migration of the inoustry from the metropolitan area of' New . 

York to cities located in Massachusetts, Connecticut, New Jersey and Pennsylvania. This migration began· in t he year 1929, and continued increa singly u~ to and during the period of the NRA. 

- Up until the year 1929,. more than 85% of the industry was locatel within the metropolitan area of .NeTI York. The industry located in New York has 

been in · contractual relations vvi th the Union for about twenty years. In 

the year 1928, the first manufa cturer moved aTiay from the ~unionized center 

of metropolitan New York, ::1nd began manufacturing in Allentown, Pennsylvania, 

under non-union conditions • . At this time, the Union minimum wages fixed by 

agreement with the manufacturers in New York were $45.00 a week for skilled 

"orkers. Admission of Horkers to the ati.lled branches was cohtrolled by the 

Union, so that in rome of these branches of the industrv workers earned on 

a piece i7orh: basis from $100 .• 00 to $200.00 in. a 44 houru week. Those manufacturers nho moved from Ne'\7 York were unable· to obtain skilled norkers in 

their respective localities. They 11ere co~pelled to employ workers without 

any previous experience in ~he industrY'. Machinery heretofore little used 

in the industry, was invented to take the p£ce of many of the operations 

performed by skille'd u orkers in the Nei7 York factories. Workers in these 

nert localities were paid $6.00 or $7.00 a ·week, and the~r "ITorked from 48 

to 54 hours a 11eek. 

With +,his tremendous differe~ce in l ab or costs, those manufacturing 

outside of New York, nere able to g iv8 g reater values or sell for less, 

'i7i th the result tha.t the mapufactur~rs op e rating in Nell York und?r Union 

conditions Tiere forced to meet thi.s m mpeti'tion by sacrificing their profits. 

The success of the feu '.7h0 moved ar!ay; offered the incentive for others to 

follon·. ~n the ye2.r 1933 , only about 50% of · the industry still remained in 

the rre tropoli tan area of Ne':'r York·. Those 11ho moved or opened nell factories 

located in the eastern states, a few in the Chicago area, and a few small 

units 11e re scattered throughout the country , chie£ly on the Pacific Coast·. 

The Union was unable to establi~n Union conditions in these factories outside 

of NeTI York. The facotries remaining in New York, Here chiefly those making 

the high gracle handbags which required the most skillful worl~ers • 

. At the time the· code was being drafted, t he industry \las a:hout equally 

divided betneen those manufacturers having contractual relations with the 

Union located in Ne\'7 York, and those n-ithout Union conditions, all of \7hom 

nere located outside of New York. Factories in New York were paying first 

class workers (by Union agreement) $35.75 a week, and second class \/Orkers 

$32.00 a \leek; · g eneral help about $18.00 a week for a 44 hour week. Factories ·outside of· Hew York v.rere paying their best i7orkers about $20.00 to . $22.0(· 

a treek, and general help from $6.00 to $8~~ 0 a week, for a 48 to 54 hour 11ee: • 

Bitter struggle resulted because of the efforts bf the Unionized factories 

to establish in the code a classification' of the ~rorkers according · to their 

' 9811 
-224-

skill, and the operations performed, at nage scales ap3)roximating those tha 

·we re being paid in Union factories. Those manufe.cturers not Unionized, fou. 

to prevent the classification of the tro rlce rs and t he establishing of Tiage 

scales in the code above the minimum of $14. 00, claiming that their uorkers ue re not skilled, that t he .' system of rrork employed in their factories, 

known a s the 11 section system11 (not permitted ·in a Union factory) -did not 

require any skill; t hat nev; machinery ·und n m7 methods revolutionized the 

manufacturing of ladies 1 handbag s, particularly in factories making low 

price bags of clo.th, (imitation lea the r) to retail at one dollar or less. 

At this time, · 80$6 of the· manu.factur.ers making these cheap bags Tiere located 

outside of metropolitan New York . 

Trade associa tions ,:;re r~ formed_ by the opposfng intere sts, and legal 

advice was employed by each ~action to· prevent the unfavorable action by 

the other. 

The final alJproval of t he cod.e \7as not the result of a compromise 

between the f a ctions on t h e me t ters at issue , but 'because the Divisional 

Administrator had ruled against the inclusion in the code of any classification of the worke rs, or a ny -;1age s ca l e s above t he minimum. Later this 

Tia s modified to allon one additional wage sca le above the minimum for semi 

skillEd uorkers. However, in the order approving the · code, this provi sian 

was stayed, until the t~rm 11 semi-sk i;Lled11 could be defined bJr the industry 

The conflict bet1:reen the fa.ctions continued a fter the approval of the code 

when attempts were made to define the term ttsemi-s.killed .. 11 A number of 

hearings ne r e held in New York a~d in Washington, a nd attempts made to .com 

prom1se the matter. The .Union rTa s active in. t~ting to have the orcter stay 

ing Sections 2 and 6 of Article IV vacat ed,_ (these sections related to the 

establishment of the r a te above the minimum . for semi-skilled workers, and 

the provision for the classifica tion 'of YWrke rs more skilled). The out siC 

!Illl1ufacturers, thru . . th~ Code Auth~ ri t;;r, voted to have these t11o sections de 

leted from t 1.le code. · 

In Sep t ember 1934, t h e Union, una bl e to effect a neu agreement 11ith 

those manufacture rs still remaining in the metropolitan area of Neu York, 

called a strike . Th e strike l a sted about five rreek s. In the interval, md 

manufacturers moved anay from NeTI Yoi,"k to . . o:utside loca tions • . About 80% of 

· the industry VIa s then located outside of New York. Some of these manufac · 

rers who moved away were those who had persistently fought the outside rna· 

facturers in an effort to equalize labor costs. As soon c.s they moved, t: 

fought just as ha rd against the New York Manufacturers in an effort to ga 

every advantage in .labor .costs. The final' settlement of the matter had n 

been reached a t . the time all cod,es '\'? ere void~d. 

The President's blaru et ag reement i ssued prior to the approval of ou 

code, called for a minimum wage of $12.00 a .ueek, and 40 hours a 11eek. 

About 75% of the o~tsi de manufac t urer s adopted the 40 hour Tieek at once. ~e 

Union agreement made . the 40 hour week aut9ma tic in factories in Ner.r York. 

About 60% of the industr.f outside of :Je\7 York r a ised · the minimum 11ages to 

$12.00. Unio~ factories nere not affec-ted. They did not employ any 11ork'S 

lower than $14. 00 a neek. .At t he time t h e code for t h e industry Has adof~ 

the wage scal e s in t h e i nd.ustry r esembled some'Rha.t a toboggan slide, goir 

from $35~ 75 a rr e ek (the minimum demanded by t he· Union for skilled r10rker! 

dovm to $6 ~ 00 a neek paid in some outside f a ctories. The code made a mir· 

mum of $14.00 a neek mandatory. ,A..bout 80~ of t l1e manufacturers complied j!" 

edi e.tely. The 20% who did not eX; mpl y , could be classified into three grc ;s: 

9811 
- 225-

vhose \7ho sought temporary advantages, e}.7ecting it would take time before 

ihey could be investigated. 'Theise manufacturers paid restitution, and com-

)lieo. full:r thereafter. 

Another class, resorted 'to falsification of records to hide non-com-

)liance. n~ey too eventually paid restitution, but had to be policed closely. 

~e third class, . ~e re t hose who used t he most ingenious methods of deception, 

·esorting to .coercion and intimidation of their i7orkers, refusing to keep 

L.1Y records, or destroying records, and \Vho employed lamJers to defend them, 

md nho i7e finally hE!.d to bring before t he Compliance Board in Vlashing ton. 

i'o rtunatel y , this Has the smallest cla ss, not more than 2% of t he industry. 

;nere are some interesting records of these ca ses in the depa rtment in 

las..h.ington. 

A group of manufacturers located in eastern Massachusetts, manufactur-

.ng a particular. type of handbag, employed children from ten to sixteen years 

)ld, to \eave strips of leather by hand. This Tiork was done in the homes. 

fue . prices paid for the work were so l ·ow, these children wete compelled to 

1o rk frequently until midnight . Under the code, child labor .in this branch 

f the industry was stopped, and the Tiork nas t~ en out of t~e homes, and 

Jrought into the £actories. 

In the beaded branch of the bag industry, most of the beading is done 

n the homes. It was found impossible to transfer this v10rk into the fac-

~ories on account of the scattered localities in which the homework is done. 

1owever, control of these workers was effected, with the result that the 

rices paid these homeworke rs Pere raised from about 7¢ an ·hour to about 25¢ 

'ln hour. 

In the year 1929, the sales volume for the industry amounted to about 

70 million dolla.rs. Using the 1929 figures as a basis, the sales volume for 

che year 1930 decreased about 30%. In 1931 - 40%, in 1932 - 60%, in 1933 -

55%, and 1934 about 50%. This decrease in sales volume created a very serious 

situation to manufacturers ,,7ho had an ove r head er_pense that could not be 

readjusted quickl y . A fe11 manufacturers, because of th e necessity for their 

naintaining a large sales volume, entered into agreements nith some large 

etailers to: g ive them reba tes on their purchases, in consideration for 

phich such retailers l)romised these manufa.cturers that they would make them 

;:>referred resources. The ~rs tem of reba ting grew ra;_p idly in the industry, 

starting at 2%, and incre0sing to 5%. Small manufacturers who 11ere unable 

)r unnilling to offer rebates, found it difficult to sell to many of these 

large distributors. 

' The average ladies' handbag . contains about t 11enty different me.terials, 

9.nd requires about thirty main opera tions to oomplete. A general lack of 

the knot:ledge of computing costs ··b-r the manufacturers in the industrv, has 

resulted in ruinous competition. The standa rds of value are set so high 

by these manufacturers, being i gnorant of tneir costs,' that the most efficient manufacturers find it impossible to compete except thru the sacrifice of 

their profits. Strangel3r, it is a few of the l a rgest manufacturers in the 

industry Pho are responsible for this ruinous competition. Their practices 

aving resulted in financial readjustments of their businesses at va rious 

times. Some manufqcturer s engaged in unfair trade practices, such as selling 

on consignment , or on a guaranteed sale , paying for retailers' advertising, 

giving rebates, and granting eAcessive terms of sale. Because of these unfait 

1

trade practices, small manufacturers, and those v:hq tried to fallon sane 

811 
-226- .A. . ... - ... 

business principles, were restrained from selling some of t~e largest distributors of l adies' handbags in the country •. 

- Pre.vi ous to the cpde , the discount allowed purchasers for the. prompt 

payment of t heir invoices was not observed to a~r great extent, payments 

. being made long after the clue date with the f ull amount of discount 1.eriu.ct .. 

Few, if any manufacturers, were willing to return checks for this reason, 

fearing to incur the displeasure of their customers. As a result, not mor 

than 40% of all accounts were paid promp tly on the due date. When the cod 

prohibited the granting of eli scdunt s in excess of 3/10 eom, the manufactur 8 

records show that fully 8')% of thei-r customers paid promptly on the due d.£, 

in order t hat they might earn the cash discount. 

The tra de practice rules under the code benefited the industr.y greatly. They furnished the manufacturers a reason for refusing the demands of 

the retailers to engage in unfair trade practices. The most important anc 

beneficial trade practice rule was the one which fixed the terms of sale i· 

the industry . The r eason · for the industry failing to show a proiit for tl 

first four· years of · th~ ·depre ssion, v:ras due perhap s more than anything el1 

to t he granting of discount and· t erms who J..ly unwarranted. The industry 

Garned not more than 1% in discounts and ranted 8%. More t han 50% of thf 

manufacturer's cost re resents a cash outlay, yet the industry was forced ! 

grant terms of 30 to ·45 days from the date of shipment. 

In a number of cases, manufacturers refused to avail themselves of 

benefits afforded them by these trade practice rules in the code, an~ 

continued some of these unfair trade practices, despite the efforts· of 

the Directors of the code to prevent them fro?"'l doing ro • The most effective instr~ent for compliance under the co~e was the label. The Oboperation given by the retailers in'-refusing to accept any product of th~ ind·· 

.. try wi t.I+out the l abel, had the effect of restraining the manufacturers fr 

·violating the code. 

In t he year 1934, the first year of the operation of the code, the 

handbag manufacturers reported profits, most of the man~acturers reporti 

their first profits sinc'e 1929, others reported more profits than any yea 

since 1929 . The supply houses selling to the handbag manufacturers repor 

ed a feeling of grea ter security in selling to the industry. The manufac 

ers were meeting their obligations more promptly, and there were fewer fa· 

ures in t h8 industry than there had been in five years, past. The retail s 

report ed an increase in the sales volume of handbags, due in great part t 

the incentive given to create more and attractive styles of handbags, because the manufacturers were opera ting on a profitable basis. 

There were not any great difficulties encountered in organizing for 

administration, other than the settlement betv1een factions in the industr 

as to the number of representatives each was entitled to have on the Code , 

A.uthori ty. All other ~atters were left to the Directors of the Code Auth i· ·· 

ty to take ca re of, which were approved by the industry. The matter of r 

presentation on the Code Authority was adjusted when a number of importan 

manufacturers moved their factories away from New York and joined the ran 

of outside manufacturers. Opposing trade associations were then merged a 

there wa s little or no further' opposition. The industry had no difficult• 

in financing code administration • . Labels were sold at .$2.50 a thousand 

alike to a ll manufacturers. The amount paid by a manufacturer for labels. 

9811 
~a h month uas credited again·st his as-se ssment based on ·1/3 of l ;b of the 

·olume of ·sale.s each month. Adjustments ne re made Tii th the · manufacturers 

t 1e end of each month. The rstem nas equitable to all manufacturers, 

,nd operated p erfectly. Assessment s ue re collected each month and comlliance on a ssessments r:a s had almost one hundred pe r cent. At the end of 

he first fiscal year, the Coc1e Authority ha d a surplus of $41, 000 of 

·~1 ich arnou.11t $30,000 Fas returned to t he membe rs on· a basis of the amount 

ach contributed. For t he follon ing y eB.r, t he rate vras reduced to i;- of 1%. 

The Tiork of a dmini stering t he code v.ras divided b e t neen t 11o Directors 

nd an Executive Sec retCJ.ry. One Director had charge of the l abor provi s- · 

ons, the othe r Director of trade p r a ctices and pl anning ar~d research; the 

xecutive Secretary supervised the office staff, the statistics and label 

.istribution. Each Director VIas familiar ui th the uork of the other, and 

he orl~ uas p l anned so t hat a ll of the 11 ork 11as thoroughly coordinat ed. 

~ne g reatest difficulty encountered in ·securing comp liance nas due to 

he overlapping of our code 11 ith industries Tiho made handbags in addition to 

ther products, 11hich came u_n.der other codes. They competed strongly with 

he manufacturers 11ho made handbags exclusively. An importa.n.t ruling on 

his matter uas made by Col. Brady, Hhich definitely placed all handbags made 

f any kind or nature, under ou.r code. Ho-v7ever, vre had difficulty in making 

ther Code Authorities accept this ruling. The matter uas adjusted satisfacorily just at the time the codes we re declared invalid. We also found diffculty in enforcement, because a branch of the indust~J making the very cheapst grade of handbags had b e en alloTied to become a division of the luggage 

ode. Thi.s bre.nch of the industrY se·riously interfered ui th the manufacturrs making lov.r price goods unde-r our code, because labor conditions were 

ore favorable under the ·luggage code, the~r preferred to remain under this 

ode. Ue made application to have this branch separated from the luggage 

ode, and put under ou.r code, so that the industi'iJ i7 ould ·not be divided into 

o codes according to p rice goods. The transfer of this group from the 

uggage code to the 1adies 1 handbag code , had just been accomplished when 

ho codes were declared invalid. 

Under l abor complia.YJ.ce, our ch ief difficulties 11ere encountered wi th 

nly a fer.r manufacture rs \lho tri ed· to <rlli sel on the hours and VIages. Some 

f these violators rre re ordered to pay restitution to their Tiorkers, mountng to many thousands of dollars. 'In some of t he most flagrant case s, monies 

ue the norkers for restitution \7e re r eady to be paid VIhen the codes we re 

oided. 

7ie can definitely state t hat 75~ of the industry immediately accepted 

he code as being the laVI of the industry, and that they complied with it 

ully.. The remaining 25% s·oon . lea rned that chiseling _on the code, to gain 

monetary advantage, did not pay. i'le are ·· certain that in another six months 

nder the code, the industry uould have had very nearly 100% compliance with 

he code. 

The strong features of the NRA administration under codes nas the genral respect the manufacturers had for any law or ruling that had t he backng of the government. The manufacturers accepted the labor provisions and 

rade practice rules as benefits in that they were protected from their cometi tors who v1ere restrained from indulgi"ng in harmful pract"ice~. At first, 

here was uncertainty as to the ability of the Code Dire·ctors to control the 

Bll 
-228-

disturbing elements in the industr,y. After a -short time under the code, 

the mamuacturers · realized that this VT a s being accqmp;Li shed, and they read 

f _ell' in line. · It wo:s ·admitt-ed by the manufacturer:s th~t the code had resul ted in imm-easurable · good to .them. As proof of their desire to continue 

benefits accrued to them' Un.der the code, they entered. into a voluntai"'J ag--

reement to perpetuate these benefits. This voluntary agreement is non in 

effect in the industry. · 

The ~eak features of the NRA administration were the delays in gettir 

ac"tion from the administration on 'important matt~rs conf:J;"onting the indus , 

After: a· hearing in 'Via·shington, it· sometimes t.ook months befo.re an amendmer 

would be pas·sed by all of: the boards· and a-pproved bJr ·the a<imini strati on. 

realize that a gr-ea.t 'deal -of th'is ·delay might hav-e been due to, the doubt f• 

aboti.t the constitutionality of the law, but we do believe that by transfeJ• 

ing the industry from one. division to another, and from one deputy to another, caused co'nsi derable-: ·delay.. It took time -for a · new ·administrator tc 

com_e· th.oroughly acquainted with the 'intimate ·problems of · the industr,y already understood by the former admii1i strator~ because he not. only kneu thf 

important }Jroblems of- the i·ndust':r·y, but also knew ·the .temperament of important members of the ·fn.dustry, and had succe~deq in gaining their confi· 

de11:ce. 

The strongest ·feature of' 'the 1\1RA administration was the fa~t 

member of the industry, in ·matt-er hou large or small,, or wherever . located 

the country, · was gove·rned by 'the code for the industry. '.'' 

' - ' · Under a 'V:oluntary 'a.greetnent;. there . is no compulsion .to JOl.n, 

the ag reement is only ehforceable against th .. se '11ho do assent, no volunta 

agreement can ev'er. become effective· in any industry. It is only a matter 

time when those who ·have · not assented ·to the 9-greement rrill chisel to sue 

an extent that n ili inalce it irnnossible for those who have assented to mee 

' their competition·. Feeling the loss in sales volume, they '11ant to be fre 

compete, even if they have to engag e in the same pra ctices which eventual 

destroy their chances of making a profit. Another tJeakness of the NRA, i1 

the varying conditions in· clo"s('ily · related. codes. · Labor provisions should 

been uniform, so that- one .. code.· would not offer more favore.ltle conditions 

another, causing . :nanui'ac trtire~s · to ·fight to remai·n under more favorable on. . . . ,. ~ 

··: ., 

The Code Authority · consi s.tently refused ever,y request for exception£ ' 

or exemptions from the labor provisions or the trade p ractice rules of th 

code. In every case, the investigations proved that the requests made by 

manufacturers were hot intended to equalize conditions for them, but to c 

tain some advantages over .other manufacturers. Geographical locations ro 

di sad vantage in the ·. handbag; indusb:y; since they are off set by other_ adva 

tages, such as th.e aif'te r~ilce ·in labor CD st s. ·E."Cperi,enced workers in Ner. 

York are paid t wo andr bne half . times as much as are workers recruited loc 

ally in other cities, and since machinery and methods are used e:x:tensivel· 

do the operations formerly performed by sk:.lled '11orkers, no effic.iently c 

erated factory is handicapped -by· being located in any other part of the 

· · country. The advantage· of catering ·more - in tensely t .o lo~al markets . offsE . 

any o.dded'· cC?st's' in frel.ght· and cartage of· raw materip.J,s f .rom eastern fact: 

In refus'irig"'any excepti•ons to or exemp-tior,ls from the ... code, it was pc· 

i ble to ·che'clc · compliance "more -easily •. · 1 t is- muQh mor,e. difficult to de tee .. 

1 violators of the code when exceptions are granted for one reason or anott• ·.1 
-229-

. . 

~t the beginning of the code, acout 40% of the manufacturers thought 

Ghey were entitled to exce~t ions; 1 atGr, v~ry few m~de requests after 

Jeing assured thnt no one in the industry could obtain any excG-otions 

Ghat might give them any advantages. A most persistent member of the 

industry 1Vi th a factory locat ed in the ~'est , submitted lega.l arguments 

~nd briefs for an exceution to the ~~ge provisions, which the Code 

~u thori ty \T8,s able to T)rove to tne administration, '"'Ould have nut this 

:irm in an advantageous position over all other membersaf the industry. 

In gene ral, it '"'as found that every :r1anufacturer located his fB.ctory 

ln a uarticular section of the country because he felt it ~as an advantage 

:or him to o.o so, and that he; V~Tas fully compensated for any Cl.isadvantages 

'or ~hich he claimed exceutlons or exe~ptions. 

, 

~811 
- 230-

-. 

Brief on D1 ~nts 

9811 
~231-

Prior to the yerr 19 ~~ 9, the 1w.nufetcturers of 1 C1 dies 1 h 0nd"J c::.es hc.O.. , 

for nore th n fi f ty yc rs, sold their g oods on ter~ J of 2/10/60 oD 

3/lO/eom. 

From 1930 u: __ J to !ic-rch 2o, 1934 , t h e ti·1e t he c ode for the industry 

becc>..:"le effective, the cU r. co ~1t i::.1 t h e L"'..dustr:r ve.ried .£ro:.1 3)b to . 

The code fixed the ,.1a:.;: ir1ui1 ·terns for the L1du3tr:r e.t not in excess of 

3/10/uom. These ter~ s '7e re cc~-.J ted by :--11 retr-tilers- throU{;hout the 

country. Since liay 27, 1935, ··-.'}feil the codes b"ecane ino:Jernt i ve, the 

teri7!s in the i ndus tr:r h"ve · remni.ned at 3/10/ eon . ·· A ~e, ,. larg e r e tailers 

end chc-i·'l stores hr-.ve deqrJ.ded th."l.t the uanufa ctu:rers. fi:c the di sco·;,n t 

c-.t 8/10/eom. 

In the ye ['<.r l92S , the s:-.le s vohme for the ndus tr~r nnounted to 

about 70 ;1illi o:~ cloll<;r s . Using the 1929 ::i;;ure s e.s a bf'.-sis, the P. l~s 

vo1urne for the yec.• r 1930 decreA.sed n·.-·nro:::lmt.tely 30 :~ , 40)o in 1 931' so;a 

in 1932, b in 1933, und about 50~~ in 1S34 . :rhis slun:.) in sales 

volu:ne presentecL a very serious si tua tio·1 to TJam.ri'C' c-d~.urers who h P-.d_ an 

overhec:.d ex.Jense bo..sec ·on l r,_ r g e Sl' les voluiJe . It vms impossible for 

them to readjust the overhea d to the ra_Ji C:. Cl.ec r ease in their s;:o.les. A 

feT1 .w.nufac tur e r s , bec<:mse of the ·nec essi r for their i'1C.into.in4;ng sales 

volume , entered L1to P.n at;r ee::rent ,,i th SO;-Je larc;e retailers to give then 

P r ebate on ~ll their urchases, i n consideretion ~or Tihich these 

Jan-q:factul~en' n e r e promised 1by such l~etailers thc..t they 1.70uld be r1e.de 

:oreferred sources. :rhe few I!lC:?,:Tu.facturers ·-ho at;-reed to this a rrangenel1t , 

ex)ected thru this ueans to ta~:e the "business ar:ay fron coop eti tors. who 

ITere not si:J il Cl rl~r favoreG. ~ such retailers. ·The ·Jrouosi tion of rebati:lg havLlt; ·been a cce;J ted by E f e ':! ·; 18llU:L ncture rs, the retailers continued to offer the JrO Josi tio:1 to other !1.~au£ n. cturers, r'JBl1Y :~ 1Vho:1 

having alreadf :fou...'1d the~1sel ves Ul1o.ble to o·b tain a.r.y business fron 

these reta ilers , d id not hesit~te to a c ce) t the ir pr osition. Those 

':iTho acce"_)tecl l ate , \;e:re r equired to Jfl.y E'. ln.r.-;er r eoo.te. It \las not 

long oefore t he uanufac turers rrc:re co: ~~Jetin -; on the ar:wun t of rebate 

they '70ulcl Give. This .rebe.te finally re;~ ched s:.J. 

By this tine , t he et ilars nere getti~~ reb~tes f rom so oany 

L1enufacture rs it Tic s no lon:;er a secret, not 1'!!=\.S it terned a rebate . 

It IT8.s e.dded to the regul;·.r cash discount of , C'.nd t he discount beca!ne 8;'; , ,...,hich eventually :t10S t o:£' the l:Januff1.ct:J.rers '.'e l,e coerced in to 

:::; iving , if the:T ···entecl to do busi ness '.7ith these re t nilers , the result 

beiilg that certp..in l a r ge retailers o.nd ~i n, store s rre re receivin{; a 

discount of w;, nh ile S!JO.ll retailers co--l tinued to receive I ro;1 the 

SC!ne -J8nufactu.rers onl ;r the ~; cash discount . 

1Ji thin t l1e lJas t ten years , retcilers h<we standardized re tCl.il 

·)rices of hnnd Jn.gs so as to avoid_ stocl c: ::._~ too l n r g e an inventory at too 

T1any different :Jrices. To confor1 rri th this o1 icy , the ret £l.ilers 

throu.. hout the countr7 fi ~ed t he ret[ti]_ ·. n~ices of hc:mc:tba,;s <1.t 50¢ , $1 . 00 , 

$1.95, $2.95 , $4. 95, ~:; 7. 50 <mel ·Jrr:~.rds . These urice s beca·1e. so 

st~nd. rd t hat an:; L1- b e tween ri~e is re&arded. s an unusual .. price, 

or s-:1le )rice , used :Jc:;,inl::;- to denote a nn.rl: dorm fro!1 the reGQlC' r 

or standard p rices. m1en the ret£l,il ·_Jrices r-rere stand.C'.rdized by the 

re ~ailers , it eventual.ly follor1ed thr-t the nholesC'le ·_iri ces. bece.ne 

standardized, by the reto.iler dejJandin(; th<?.t tho !1D.m1facturers p rice 

9811 
-232-

their lines to corres:?onC'. rri th the stnada rcl reta il :_Jrices , thr.t nould 

:~:i ve the :re tr-.iler r. ·Jerc en t ;"l • :e of ·Jrofi t suff ici e11 t to cover t he re~ 

t <J.i ler 1 s 

t hc.1.t t he 

ove r her,_d fl.:..l(l 

!!la nuf <1C h1re r s 

(h3 7r::. c.? t • • .. ) 

7. 50 

15 .• O'J 

21 . 35 

3 'j . :35 

:34 . 00 

7.2 . 00 

f"l ;Jro ... it on 

·1rice their 

a do ze:1 to 

II II II 

II ' 11 II 

II II 11 . 

11 il II 

11 II II 

If II II 

h i s snles. The retP.ilers dei !::tnded 

:.i nes ;:).~) :"allons: 

ru t c.il 0.t 50!.· 

II II $l. OO 

II II 1 . 95 

It II 2 . 95 

11 11 4 . 95 

II 11 ? . 50 

II II 10. 00 

It ·o 1l rrod. , ho··reve r, t h.!l.t :-'-1} .. ret il e:;.~s l~ e no t ·-illing to ay 

t he s e1me ':-rhole sF.l e ·1rices t o t :1e ; 1nnufe.cturers, and )l~ ic e concessions 

are cont inu::-.lly sou;::h t by ile :;.~s , s o [\S t o n.ll0'.7 the;:1 a larGer percentage of p rofit. 

1Ji th t he y:}wle le ·.)r ice 1 i:1 L.J S s £tnda:;.~di zed , t he ·1nnufactur e rs r..1·e 

forced t o co:1lJe t e on n b n.s is of styl e , qu2.lity RnJ. value. Co~1eti ion 

<:l.i! Ont:~ st the . 1£'.Jru.fa.ctu1·ers is v e r y lo;:eeJ1 . ~a h manufncturer striving to 

cree.te 1181.7 sty l es nnd b;y :;ivint_; :.10:-e V[' , he ho·1es to F~. ttrnct busL1ess 

FI.Y'ay fro --i his cou)e titors. Style is em i !l!J Ol'tnnt fnc tor , r·.1cl each year 

t he r.wnufacture rs 1 re•·n·esent;-· ti ves E'TG sent to :buro--·-e to seP.rch the 

r:1a.r~ . .:e t s for 1e,., iC..eas. A style ~)O.l=; rarely renai ns ::.:'1 r •w.nufacturer 1 s 

1 i ne n ore t h <- n ei,_)l t to ten neeks. Then it nus t oe repl a ced by E' nery 

styl e be ca·use of chC'l.ng e i n color, ·1C'teri c::.l, or becC'us e t he style is 

co:? i ed by a r.m}-el· o: chea:·1 hc nd.'bngs. Very f r eC1_uen tly , a style ~o roduced 

in r=m e:01ensive oac_; is co:_1 i ed into n ch e<'-_) "Je.c-; s oo::1 after i t i s shorm 

in t he sho-,J of a r e t r- iler. 

The r e c 2.:.fl;1ot be fl.:::lJT p ri ce ~· dn(; b~r the 1ru1ufC' cturer s of handbags , 

Since t here [':!.~e no StP rQS cf VC' l u e, nn.t e rioJ.S OT ro rlma!1 Shi ') that are 

r eouire rl 1 each ·1 rice li•1e , nd s i :r1ce no t n o !lanufnctuers mal:e the 

i dentic a l bags. The narg i :1 bet.-re.e;1 the uanufnctu rer 1 s' co s ts Dnd h is 

s ell i ne ) rice is so 11orrop t hn. t r-. 1:3re<' t : 1r-.ny of the oldest and uost 

subst nti oC~ l f ir:"Js i·'l the business h ave been -u.nable to onerB.te cmd have 

been f orced into involl..mt o.r y :;_~e tir 1e nt. '.7i th trrice the mnL1er of 

ma.nufo.ctur e rs co netir::; for one- hrl :: the nornn.l vol.:u,E1e of -Jusiness , 

om etiti o~l hfl s Jl o.ce cl t he h.'1 ndb< ~.: ·bu.si:1ess e.t t he '!ercy of t h e reta iler 

3e au ::~ e of the '> e condi t ions , t h e r etf'.ilc r is no,·r dEnan din ~ concessions 

in ) rice , extrC'. dC' ti ·v . her d iscounts , n.nd adU.ed. services. 

The 3;s discount c.llo,:e b:.r t he nrmufn.cturers i s a cash disCOl...lilt , 

a:.1d i s offered c>.s nn inltuc e:1ent for the p romp t paynent of the invoice or. 

the due da t e , nhi cl".:. i n t h i s c n.s e i s on t he tenth da:r of t he r.1onth 

fol l o•-rint; t he clr'.t e of shi-.J nent . In C'l.n tici) ation of receivin~c; pF'.~':Ient 

of t he : 1a j or ·1ortion of their a ccounts j:'ecei vable on the tenth. da~r· of· 

e ach 11onth, it is the custo:! for t he T,1f'..nufacturers i n t he industry to 

a rran, ;e ter:1s " i t :·1 t he i r s ourc es o:f su:-n lies tha t ' ·ill enable the .. 1 

to Ja r their current incl ebte l~ness of the f i f teenth dn3r of each month. 

This a rrcmc;enent e.lloyrs t he I.wnufact-u:rers five cta_ys for the recei:1 t of 

the ir funds . Sinc e t h e c a sh discount the 7.w .. nufa cturer is allon.ed de -·Jeni 

u-t)On t he ·:12Jment of h i s -Ji lls .:. ro ~J tly on the f ifteei1th of t he :.1 onth, 

9811 
-233-

;~e TlDnui'p ctu r e r s , :Jr.rticulnrl ~r t !l.e sna ll : 1811 u.'ac t·u.rers ,.,.i t h limi ted 

:" 1i trl 1 .. P:1t.l ··i t h little Ol' ni th ~10 DOr!'OP i ng ~ )8-Ci t y 1 a.re illin ~ to 

llo-- t:1e 3,; i iscohnt i n order to collect the-ir outs t 2:10.L1g P.ccounts 

>rom.Jtl y , .0':'1d enc:t0le t hen to IJaintC?.in t l e il· o·:n credit C1.nd t o ef1 rn 

;he c::sh cii s c o·Lmt RllorJ_) d t hen fo r '"Y:'1ent on t h e due dr t e . 

:rhe ·wovis i on of t h e cocle ·)rohil) i tin::; t he r:: i vi ng, of t e r ns in 

:~: cess of 3/10 eon as a l so i nte··l(.eC. to ·)r e ve:1.t l D.r ::;e r:1anufe.cturers 

rho \1ere ""'i:nr-.!1 cia lly , r,bJe , fron :~:i:o..nti t; e ;1d of the nonth' de.tL1s on 2.11 

.hi menk 1."d.e on t he :fte:r the t,7enty-:t..ifth of t h e n reviou s r10 ~1 th . 

y tbis e2~1G of 1;r antin1:_: l o:r.. :er cl.r .. tir: _::_ , t i1ese l o.!'ge manuf".cture r s hnd 

n Pdv<'1 t e ._ .. :e t~~ t co .1.l C. -.,e used r-~:-o_ ns t h~ s no.ll :1PnUff'.ctu..rer with 

iJnted c)i , nh o ·OU}.d be UnE~.ble to O_)erate i f he hc--,d to g r o.n t 

:1e e~:t r 30 dP..JS on shi :oents nnd..e 2fter the t ,-ent;y-fifth of the 

:onth . It ·:cul<i r1.lso oeco 1e t "1e Dracti ce for retailer to he.ve their 

ip~ents nnde tilieneve r p ossible , on or ~f ter t he tuenty- fifth of t he 

tOnth , so as to t ake dvant E~.,~; e of the extra 30 d.A: -s it c.lloued t 1.1em. 

Soue !1c..nufacturers in t he .i ::lG..us try are fin~ ncir·. ll r able to return 

very re::1i t te_nce !E!ece i veL1.. afte:- t l1e G..ue dP.te, if the f ull amount of 

ash discOU..i'J.t i s deducted. Ot ~le s a l lo:: t he deduction of a sualler 

.i scOUi1 t tho.n 3;o baseci. on the nu: er of days po.;y1.1en t is -~ade -,as t the 

ue date . Sor1e no.nufacturers F'.J.. e in sucb. UJ..'[;ent ec:. of funds they 

annot afforC!_ to return or hoJ..c1 t he checl;: end e; an P.djustoent · of 

ne discoL:nt erroneousl y dec1.ucted. The=' de·0osi t the check rmd tr:r to 

ollect the une 2rned ~ortion of t he discount . 

Duril1L:> the code , t he r e ;-rere ; 1c>.ny c:-: se fJ uherc r e tc:dlers den~:1 ded. 

f <' uFmufacturer th:-: t he secre tly n.llo,., f~rst of the P.lOnth datin ~ 0nd 

ven longer da tinr, , end nhen rE~ n ted , it l!F' s usee" by the ret a iler to 

arn extrr .. ?ntici-.)e.tiOl1. lTot :10 r e th?.n 20 · of the mc..nufn.ctur ers in the 

ndustry a re finc:>ncirl1y F".b le to g r et;.'l t J;er:Js beyonC.. the tenth of the 

0'1th , ITi thou t seriously ffect :i.~ ; the i ,. ability to sta r i '1 business. 

rior to the code , t he ·mnuff'.cturers n erc l nx in -,er:1i tting de l inquen ts 

o deduct the c r sll disco·mt c:>.f ter the due dE1.te of the Lwoice . lTot nore 

han 40% of C'.ccounts receiv: 1Jl 8 n e re )a iel --)rOT'l,Y:) t l y on the Liue date , 

the tenth of t he non th . ) The code rule r equired :::> ro r~p t p~ oeri ts from 

he retPile:: to e.nti tle hi:rn to decl:u.ct ~lC Cf-l.sh d.isc01mt . The JJE~ nu

a.cturer::; re~J orted c t th[.tt ti:1e t hr t f'.,S ,.,_ results · of t-his code rule , 

ore t han 80~..) o·f the i r a cc:IDun ts r eceiva-ble u erc :J:-: d ·rJror.n tly on the 

enth day of ea.ch ·month. 

I n c a lcul 0.ting costs , the mD..nufacturer does not include the ~ 

Dsh discount in the cost of t h e a rticle. The cr,sh discount i s figured 

s a deduction from inco:'le ._ ; discount cou ld not be consi C..ered a 

~i th12.te c ash dis c oun t . The extrR 5> deoanded "Jy the r e t c.iler is 

efini tel r a tr;: de discount . and i t r.mst be included in the cost . In 

e:.1c.nding Pn extra 5;6 discount , t h e r e t0.i l er i s rer.l ly chisell ing on 

CJ.e u rice . I f thi s i:J ~lw t is de s ired , he r.1~ t try to c et :~ ice rellction frorr1 in6.i viduc.~ : w.nufacturer s , s i nce u rices a re not fixed in 

he i:1du , .'\nd each :rJanufa.ctur er is at ib~rty to ria~:: e c..ny )rice 

oncessi ons to Pny buyer f or a ny r eason he thinks warrnnts such con- • l 

ess 1ons. I t o i ght r equi re the retailer to b ?_r g ain indivi du a lly 17i th 

3.Ch manufac t ure r f or -.J ri ces , rmd f or tha t reason he u r efers to force . -

311 
-234-

the g r nn ti·,-,_,:; of ; ctisco1:nt on the enti:ce i jH.l_-astry. It i s certain 

t h <:"' t i f t:J.e ul~{;e ' 1C'.nufacturers L' .. :;reG to al_lo,.., t he 8;~ eL i SC0Ul1 t, ·the 

G·Jo.ll :1:-'111.Ji'Cl.ctui.'Gr:3 ·ri:tl be restraL1ed fro ·1 cloi"::._; usiness ,_.,i th such 

retailers "llilless t .::1ey clso a c r ee to -;rc:1.nt then the ; d.iscowJ.t. 

The m1U ~r ctnr rs ec.rn on t he ~wero . ._ ·e, disco1.m-'us of onl7 1 o:..1 

their SC~ les vohu,ie . tlheh .t hey a lloTI 3;h for :_)rOE1;Jt ~);;.yr1ent 1.-: i thL1 an 

C'. e~ ;; c 30 clays, it i s r llo·-rin.:; t :1 e retnil e i' C1.t t he rrte of 35;; a :rear. 

I i1 de 1'-- Tlin.r; e. cash discom1t of .~ :fro:"! the industry~ the retailer is 

<:'.sl:i nL; 8 r E'.te of 96~; t.\ yeer f or pron :_)t lJr:,Yi'lent. The discount of 3;; 

g r nnted r the industr·,r is CJ: cash cl..iscou11t , a nci_ e. C<:"'.sh cLiscou 1t is D. 

deduction o:,.n t he sellinG )rice, anct it :Jec on e s ll. trade discount , Ellld 

bec ause it i s a tro.de G. i s conu t, it i s c: :1 elene;.1t of ·Jrice. It h2.s :'lever 

been t he custom in t he l r.cli e s 1 ha-J.db8-f~ i n dustry t h ru its entire 

existe"1c e to ever c1.llo,-; trpcle discom1ts. 

Sone l"e t cl.i lers il1 de nal1dL1c; this tra de o.i scoun t of 5: , ::;i ve a.s thei 

t - t tl ,... .- , . . . . 11 Cl·s· I o· --u rec:.s on .n:• 1e e :;:trt:'. -o,o CJ..lSCOl.::w.J.t lS re qulrect <'.S a J _ __ , or a 

11 HIJJK; P::.O:i.~IT 11 , t o i nsure the:-1 L'. )rofi t, •-::he11 rnc.1. if, t h ey fail to 

ep.r;.1 a net ·) l~ofi t on <' normal :1 ,- J~ u ·J, ··:hich t he:r o.dc:J. to the wholesale 

cost o:c' e he 1d.ba ; ~len the '? ric e to the consu·. :er is fi::ed. In othe r 

,..ords , t;>,e:r denr.:1c"'c t h <" t t he !:a:nufacturer su.b sid.ize L1e:1 f or selling 

hE'..:.!dba-?;So ·:rhe '1c.nufn.cturers cannot llilderstond '-·rhy the:r should be 

·w.de to S'tJ.bsi d!bze the reta iler just bCC[l.USe they :1['V8 usecl all of their 

i :v;enui r c-n6. ·1)l'Ob 0. ~r ris::e cl P.l J of their c2ni t a l t o construct the 

. of handbC'.c;s t hL' t t h e retl'iler :-mst hB.ve to sel 1 the collSUJ.ler. 

The :cecords sh0'7 t h <' t the na; mf:~ ct ur ers of h[)ncl"ur :;s rarely lJ< ~e 

a -_J rofi t o f 5;; on their snles. ~lh n the retn ile r de· H'ncls the e:.::trn 

r::; ~; discoun t, the r-1nnu.facturer is Cbr:TDeJ. led. to see ~-: so·1e other T1eans of 

rovi in~ for this additional ~ sin~e to. Give it out of his profits 

oul c1,ri· e out his entire ~J rofit. If he includes :Ehe 5 into :1 is costs, 

he '7ill 'ue d.i crj .l inr' tin ~ n.r;r'.L1st t h e sr·w.n . .:md ediu: 1 size~ retailers, 

-,ho:-.1 h e sell s at the 3~ ' dis c ount, ·7ho ,_, iJ.l 'be ·)ey inc hir.1 an extra profit 

of 5% t h2.t he b.qs a c1decl t o 1is costs, but ho.s give n JC1,c l>.: to the larc e 

retailer. 

:3efo:c e t h e cocle , the 1L'.nuf;:· ctu rers too frequ ently c ranted the 

extrc-. 5> cliscoun t t o t he r etr: iler , a t tb e e:nense of t l1 e salesnrm, r,rho 

was c:J.Sl(ed to c:;ive U}_.) cJrrt of his cO' l!1ission, end at the ex·)ense of 

h is 1:70rLers, r;ho were :tequired to ' rorl:: for less v7aces , or a cce:o t a 

lo'.7e r )ieee ~w r: : r :- te under thre~ t of havL1.r; the frctory closed dOITl1 , 

b ecL'.use oi ' L1Clbili r t9 )rocure orders a t co::neti tive ::;rices. 

Certr·Ll re-tail groups are r.1e!1bers of C!.n n.ssoci:•tion '.7hose :uer1bers 

have a conb ined p urchasi_ng p oTVer :~ h r' n d"uag s eo__uc- 1 to ab out one-third 

of the total output of the etnd~Jr .g inclustry . The :1enbers of this 

3..SSoci EJ.tion nre re fus ing to Juy f ro , those manufacture rs r-ho \7ill not 

0 rnnt t he u e1e B> discount . 

If t h e L1clustr:r is unHole t o ile.intain rt unif0l~ "1 cash discount 

for 11 nembers of t h e industry, the trade p ractice rules Tiil l becone 

ineffective 2.nd unenforceab l e sin ce no nonufFJ.ctuer ''.'ho has assented 

to t h L, e.;'5ree11ent cou ld long ,.,i thstnnd the r efusal of lC~ ;e retoilers 

to bu~y fro·.-1 hi:.1 L> ecm1s e he refuses to sell on terms in excess of 

9811 
-235-

>/10/ eor1, while other '1Mu:fc\cturers P.ho h ave not assente d to the 

~reement are doinc so. 

If the ind.ustr; , thru its voluntar=r agree:·1ent , cannot establish 

md enforce naxioUJn terms of sale for a Ll_ nembers of the indus try, 

:on Jeti tion ·•ill 0e b ased !'1.gain on the lO':'Je st l abor costs , resul tine; 

.n the comy lete break d.oHn of the miniiJU11 17ages and : 1axir.mn hours a nd 

lrohioi tion aue.inst chilcl labor rules established for the industr r. 

311 
- 236-

-. 

E X H I B I T "J " -------

Le tt er outlining policy resp ecting Classification 

9811 
EXHIBIT J. 

Mr. Maurice S. Mosesson 

Associated Handbag Industries of America 

303 Fifth Avenue 

New York, New York 

Dear Mr. Mosesson: 

November 15, 1933 

I promised today to secure for the members of your industry an 

int erpretation of the policy of this Administr ation as regards classified 

wage rates, and in particular an interpretation of the phrase "\.asing 

rates 11 • 

The Administration will not in the future approve Codes of Fair 

Competition containing union agreements or classified wage scales. It 

will, however, approve codes containing t wo or three basing rates. Such 

basing rates are to be in no way confused with the so-called It classified" 

rates. The term "basic rat es" may best be e:lq)lained by an exampl e . 

~ere there exists a clear, well-defined and logical separation of employees in an industry into t wo or t hr ee groups, a basic wage may be set for 

each group. Thus, in the steel industry, for example, the r e is a very 

sharp line of demarcation bet ~een skilled and unsk illed labor. If you 

will remember, in our conference last Friday, I suggested that it might 

be possible to set one miniJTmm wage fo r manufacturing employees and. a 

another minimum for non-manuf acturing employees. The difficulty of such 

a proposal became at once apnarent, however. Someone else, ~r. Wald.Qan 

I believe, suggested t hat the line be drawn according to s1d' 1 or length 

of time employed. The terr.1 11 sY:illed11 , ho""ever, is one very difficult 

to define and the length of service is by no means an adequate criterion. 

So far as I am able to judge, there is no clear basis on which a 

basic rate above the minimum may be fixed in your industry. Th vr a does 

not exist in this industry any such clear separation of emnloyeeB into 

groups as there does, for instance, in the steel industry. Shoul d the 

Ladies' Handbag Industry desire to set a basic rate above the m:nimum , 

it might be done by some such plan as this: The minimQ~ mi ht bs defined 

to apply to the so-called non-manufacturing employees and the twc or 

three types of manufa.cturing employees who customarily receive the lowest 

wages paid in the industry. Following that basic rate might be pr~vided 

for manufacturing employees, except for t hose employees as are alr~ady 

included in the above g roup. I think such a plan might be wo r kablJ. 

I hope that I have clearly set forth the policy of the Adminis~ration 

in this matter. I urge you to complete the negotiations on this code as 

quickly as possible. I should like to set a date fo r hearing sometime 

this week - at the very latest , next week. 

I appreciate your cooperation in the past and anticipate your 

continued cooperation in the future . 

Very truly yours, 

jcw/g 

J ames C. Worthy, Assistant eputy Administrator. 

CC sent to Schlesigner and Waldman 

9811 
-238-

~ K H .. !_ . .- 11 K 

~eports on definition of Semi-Skiiled 

9,811 
- 239-

EXH T K 

CODE AU':!iO ' I'IY 

(-Artic l e IV, a r aer aph 2) 

The Committee met on Saturday , Apr i 1 21 from 10 to 2 .c- • . 

The Committee met on de~' • _pr il 28th , from 9 : 30 to 3 F.J 

The Committee met on ond ay, April 30th , from 10 .I.' . to 4 F .. 

The last t uo me e tings were a tt ended by t he Administration member. 

The follo wing is t he f i nal r eport of tha Commit 

~~~ICLE A. The Definition of Semi -Ski l led in Cu t ting . ' :,P . 

( 1) All cuttin~ oper a tions , excepting pe r, . and rubber 

cloth cutting are to be consi der ed s emi-skill ed . The following embers 

of the Co ~~ itte e are in f avor of this definiti on . 

I. Schoenho 1 z 

Chas. 'olf 

S. Maksi k 

A. Gr eenbaum 

( 2) The following memb er s voted agRinst tle above and pro ose 

tne following : 

J . ~~a o 1 i an 

R. Burst ein 

S. Golds ith 

The only employees in t he Cut ting Department that shall have the 

rating of semi- ski l l ed shall be employees engaged in the cuttin5 of 

outsides , ith the excep tions of hand l es , handle linings, pullers, 

puller linings and gussetts that a r e cut by clickers . lso an, employees engaged in the cutting of silk linings b' knife are semi-skilled . 

( 3) Mr . Lubline r objects to the b-10 foregoinf definitions and 

offers the follo wing: 

All employees engaged in cutting shall be consid red semi-skilled 

workers . 

ARTICLE B. The Definition of Semi-Skilled in Ope ating~ .-1 

(l) All outside operating shall be conside r ed semi- skilled exce t 

handles . Lini ng s as the Code provi des. The fol l o• in6 recommend this 

de finition : 

9811 
-240-

I. Schoenholz 

Chas. Wolf 

S. Maksik 

A. Greenbaum 

( 2) The onlJ' e!nploye e s engaged in the Operating Department that 

sha ll be rat eo r. s semi-skilled workers are those v•ho ·are engaged in 

se in~ welde0 bottoms and gussetts, pocketbook gussetts, sewing leather 

and lining tog ether, without a gauge on outsides. 

The following propose this definition: 

J. Margolian .. H. Burstein 

s. Goldsmith 

(3) Mr. Lubliner objects to the foregoing definitions and offers 

the following : 

All e!nployees engaged in operating shall be considered semi-skilled 

excep t as limited by the Code. 

ARTICLE C. Definition of Semi-Skilled in Framing 

(1) All framing shall b.e considered semi-skilled, excepting all 

purses not attached to frames. 

The following members of the Cornmi ttee ar.e in favor of this 

definition: 

I. Schoenholz . 

Chas. Wolf 

S. Maksik 

A. Greenbaum 

(2) The only employees in the Framing Department who shall be 

rated a s semi-skilled workers are those who can frame completel:r an 

inve rt ed or inner-grip frame or who participate in framing of covered 

frames, full inln;v frames or shell frames. · 

This does not include the inside pockets of any of the above 

fr ame s. Also purse framers shall not be rated as semi-skilled workers. 

J. Margo lin 

H. Burstein 

S. Goldsmith 

(0) Mr. Lubliner objects to the foregoing definitions and offers 

t he f ollowing : 

All e ployee s engaged in framing shall be considered semi-skilled ~ orke r s . 

981 1 
2~1

A.:.TI CL:::; :J. Definition of Seni- S!::illed in Pn.:rin.7 . 

(also lmonn as Sdving ) 

(1) All em~Jlo rees e11_r;a.:;ed in ~n.rin<:"> (::1e ning sorwtines lis _i 11) 

shall be consi dered seL1i-s)dlled. 

r·o Schoenholz 

Che.s . .7olf 

S. : ·:ak:s i '-c 

A. Gr eenbau.1 

P. Lubliner 

(2) A semi-sk illed parel~ is one rrho can par e e.ll t ;rpes o ... ·rork 

and ITho lli1derstand.s the parinr: n a chine so e.s to be abl e to r.ml,.e t~1e 

necessary changes of gauge , :::ni fe and emery \7heel. 

J . : :m,golin 

E. Jurstein 

S. Gol d.sl"1i th 

ARTICL:0 . Definition o f Ser1 i-Skilled in Poc~cet"'book I<aking 

(1) All e:nployees encagod in ~Jo cl::e tbo ok mnking £'.re consider ad 

semi -s~: il led , except turning in handles, t ucks or loops and all table 

uo r.c o~- lining s. 

I. Sc~1oenhol z 

Chas . \7olf 

S. iiaksik 

Ao Greenbaum 

( 2) A semi-sk illed. l)Ocke toool:: maker is one 11ho turns in l eather 

and n.ssenoles a ba.g . 

J . i :ar e:ol in 

H. 3urstein 

s. Golds.1 i th 

(3) lir. Lubliner obj ects to the t iTo foreP.;o inr; definitions a:1d 

proposes the follo~in : 

All enployees engaged in uocketbook ma~;:ing saall be considered 

s emi-s':illed 1:orL:ers. 

T:1e Committee agree that no ·oerson shall be considered ser'li-skil 1 ed 

on a~ of ~e abo v e operations ~Ul ss he has b oon employed on any operation for a perio d of six months. 

9811 

(l) The follo'fing vote for the six :.10i1t:.s period. 

I. Sc~ _o e~1ho 1 z 

C'1<l.S . 0lf 

s. UaL::sik 

A, Gre enbo..un 
- 242-

(2) The fo11o,ing ·vote for nine nonths : 

J. l ra:i.' ·olin 

I: • Tun in 

s. Go1risoi th 

(3) I :r. Lu"'o1iner votes for t. ree months. 

::essrs. i."argo1in , Go1dsmi th and 3urstein object to Hr. Lub1iner t s 

right to vote on t~is committee. 

I. Schoenho1z 

Cl1airman of the Committee 

9811 
Dr. Earl Dean Howard 

Deputy AQ inistr tor 

Commerce 3ldg. 

Washington, D. C. 

Dear Dr. Howard:-

- 243-

CODE AUTHORITY 

LADIES 1 H.AlJDBAG I NDUST::tY 

303 Fifth Avenue 

New York 

May lst, 1934 

I am enclosing a report of t he f i ndings of the Committee on the Definition of semi-skilled wo rkers; also a copy of the verbatim report 

dictated by Dr. Paul Abelson, who was pres ent at thi s last ~eetin . 

From the report of the vote, it must be evident t o ~rou that the same 

division of interests dominated these meetings - the out-of-town 

against 'Ne York - only in this instance, the deciding vote in favor 

of the adoption of the report was given by a manufacturer who has a 

factory in New York as well as out-of-town, but who opposed the efforts 

of the out-of-to V~m manufacturers to minimize the class of unskilled 

workers to a point where it would be ne~lible. 

I pointed out to the Committ-ee tha t very little was required to be 

added to the exemptions already stated 'in t he Code i n order to give them 

the Definition of a Semi-Skilled Wo rker. I regret that the Definitions 

that were adopted, even by t he ma jority, are l engthy and that it ill 

be almost impossible for a Code Director to obtain compliance unless 

he spends considerable time in each factory to watch the operati ons of 

the workers. However, t hese Definitions a r e the best that could be obtained under the existing conditions. 

(Signed) 

A. Mittenthal/TD 

9811 

Yours ver • truly , 

A. Mi tt enthal 

Code Dir ector 

Ladies ' Handbag Industry 
-244-

CODE AUTHORITY 

LADIES' HANDBAG INDUST~Y 

303 FIFTH AVENUE 

NEW YORK 

May lst, 1934. 

A final meGting of the Committee appointed by the Code Authority 

of the Ladies ' Handbag Industry to define a semi-skilled worker was 

held on April 30, 1934, at the McAlpin Hotel. The members of the Committee pr e sent we r e : 

I. Schoenho lz 

c. Wolf 

s. Maksik 

A. Gr e enbaum 

J. Margolin 

H. Burstein 

s . Goldsmith 

.. Dr. Paul Abelson - Administration Member 

_Fhilip Lubliner- Labor Member 

A. N. ittenthal - Code Director 

The Committee by A vote of 4 to 3 adopted the following report 

defining a semi-skilleo worker. Those membeTs voting for the report 

we r e : 

I ... Schoenho l z 

c. wo1 f · 

S. Maksik 

A. Gre enbaum 

Those members voting ag~inst the report were: 

J. Margolin 

S. Burstein 

S. Goldsmith 

The minoritJ' report is herewith attached; a lso dissenting opinion 

of Philip Lubline r, Labor Member on the Committee. 

~T ICLE A. The Definition of Semi-Skilled in Cutting. 

All cutting operations, excepting the cutting of paper, wadding 

and rubber cloth are considered semi-skilled. 

~~TICLE B. The Definition of Semi-Skilled in Operating. 

All outside operating shall be considered semi-skilled excepting 

handles and linings as provided for in Article 4 - Section 2 of the 

Code . 

9£311 
- 245-

LAD I ES 1 ::.AITDJAG EJDUS ~RY 

303 FI FTE AV:C'DJE 

heY 1 s t , 19 3L': 

~OR I TY :::EPORT 

A:.TICLE A - rr.~e ~ef ni ti o:1 of Semi - Sl:illed i n Cuttinr., 

·J.l~i e onl y elll.p lo ~ree s i n the Cutti nG :Ue:Jt . \;}J.C' t s~ <'111 have the rHtiY; 

se;i1i-sl:ill eC::. ~1t'.ll ·0e efl1p loyees engnc,ecl in the cu t tin.; of t he outsi c"..es , 

n i t 'h Cl~ e e:cc el)t io11 of hnnc:les , i1c.nc:l e lir:int.;s :"nd [:;ussetts tnc't c:>.:re cut 

07 clic_(ers . Al so an:r employee s ent;<:>{;ed i:1 the cut tin.:; of sil k liningg 

by l~1 fe rre s emi-sk illec • 

.A?.i'ICL::::; ~ - The Defi n l t i on of Se!i1i- Skil lec1 in Operatint; 

J.li.'.. e onl:' em"Jloyees er1;;r . .;:;ec1

. i n the Operat inG De~Jar ment that s:i.:nll 

0e l~e. ect E·S semi -sldl l ec:. Yrorl;:e :ts o.re t hose vV}lO L.l'e en_:;a0 ed in sewing 

wel cl.eo_ b o t tor,1s c-.. nd .;_JUsse tts , ~Jo ketbo : ·_;ussetts, sewint; l eather gnd 

li !.: l~ to bet,.er , e i ~1e r Oil <'. :1ic;:1 or f l at .,1c-.c:1ine , sewin& f<.mcy stitchi n:; n it:wut " gau_;e on ou t si cl es • 

.A?.J:ICLE C - ?.c. e Defi ni t ion of Ser_1i-S:,..i l lec3. in Fr aL1i nt; 

~il e Oi1l y ern:?loye e s in ti1e Fr<V.li n:-; Departi·.lent vrho shall be rated F>.S 

se:11i - sL:illecl Y:ol.~ke s a r e those i'ho CD.ll f:t[l.me c om·-,letel y 8.i1 inverted or 

i:..1ner - c;ri:r} f r c..:.1e or \ia.o ~x> tic )ate in fl~aminb of cove r eel frames ' null 

inl ay f r enes 1.~ sl1ell f r C'J,1es . This d.oes not i 11cl uo.e the i nsi de po c~;:et s 

of c:>.rry of t:1e ov e l~c:>mes . Al s Cl purse framers shall not ·oe rated ns 

se i-s il lecl worke rs. 

ARTICLE D - The Defi n i t i on of Semi- Ski lled in Pal'inr.; 

A se;-,,_i - ski lled -->ar e r is one v1i.1o c nn ")E•.:te all types of work and. Yrho 

unde r StMd.S e -)aring mach i ne s o ns to Je a"ble to ma}:e the necessal~~ 

chan ge s of gau ,;;e, knif e Clllci emer y wheel . 

ART I CLE E - The Definition of Se'mi-Skil led i1 Pocl:etbook ?1taking 

A se:-.li- sk i l l e d n ocke t bool: El[lker is one who turns ia leatl1e1~ r>.rd 

e.ssembl es t he b ag. 

ARTICLE F 

Th e Coi'ilr.1i tt e e a grees t l1.e.t no :) er son S!lnl l be considered setLli s~:ill~;c_ 

on [1.:-w of t h e c.b ove ope r o.tions unl ess he he.s been eJ:r-Jloyeci in r>)lJ' 

tio ~ f or a ~erio d of ni ne mon t hs. 

9811 
- 246-

F3PO::?:_ C? p::ILIP LUELilf.i!:R , L.Ai30E IL~r.C3 ER OF TEE CODE AUT~ORITY , 

AlTD : ::::::r"J:r:::..!:. - 0 r Ti.3 · SU3 - cc· · .!: ·· . Imn11 t,.c, ·-..,., , ....,J.O DEFI·1.-~ -::: 111::E ...... p_O: ,..., OVISIOl:. S DE.ALIi.iG ·.n~;.: '!AGZS FOP. r E:t:: SEi.:I-SKILLED 

Ir. S1:!.bmi ttin6 my re~ort on the definition of the term of serai -

skillecl er.nloyees, I \"/e.nt to st<:1.te tha t Articl e IV, Paragraph 2, l')rovidin : 11 Eo serai-sk illecl eLnloyee e'i1,5ac"Sed in t l:e cutting, framinG, 

·1arin.,J , ")Ocketbook-ma1.:i n~ o.nd. ope:c<t ing ( exce·)t 1 i nin.;; ope rators, cementin.:; 01~ ··'"la. stin~ ) em·oloyed in t he mnnuf'Rcture of any of t h e l!roducts cover ed 

by. t!lc provision of this code , mo.de of any mat e rials other than i w.i tat ion 

l eather , shall be l')ai r. at l ess t han 11.:5 ¢ per hour" , is self - expl anatory . 

?or 111<1.ny y e a rs all ~he r.1.:mufacturers, collectively a nd indi vidu..1.lly , 

consi cl.e r ec'. the ope ret ions of cuttinb , o··:->era.tin[; , ~ocketbook mal:ing , 

fr DJninc c-nc'. T)C:.rint,; Rs skill ec'. op er· ti ons. It is true that there v:ere 

two clc:sses c>.GI eed upon, n first-class r~1cl also a secono.- class which 

c:i fj_ ere11ti a t ~d be t ween en c-.ccom•)li shed worke r who could do everything , 

and a. v1 or::er who could •_)erform or:ly certain '9arts of the operation . 

In tJ.1 e c ase of p ocke tbo ok-m&:ing , a class of semi- skilled vvorkers 

was recoQli zeC. , such as tl1e he l pers who a::ce the direct e.ssis tc9.!1 ts to tne 

no cl:ethool-:: mokers , and. t hese hel pe rs recei vecl a wat;e as high as $31 . 00 

per rrec:-: , 2no. today they receive ;, 23 .30 for 1:':0 h our_s 1 work. 

T~ e -;:n·ovi sion in t he co de establishing a semi-skilled em:ployee in 

the c:."oove J7lentioned branches of the inC:.ustry was intended as a concession 

to cover tJ.1e special conditions in those fco.ctories tha t are outside of 

the :r;e tro·')oli tan district of New Yo:ck Ci t J , where a system of section.:>1-

i zing ti~e rrork has been ins tall eel. . The workers in the out-of - town locali 

ti es e.re orol"en i n to certain op e r a tions o.nd vii t h in a very short period, 

after ·ueL1.:_, steadily engagecl in thHt "ll'.l"ticular operation , become very 

efficient Clnd wil l com:1are most favor~ble in speed co.nd efficiency on 

t ' at o:'"lf. r ::.ti on with any sldlled worke r . It ip for this reason that the 

t er.1 of seni-sLilled ern:1loyee is a lloHeC::. in our code , and by excludinG 

c eraentin:; , ;astint; an:i lining pe ratin , t he obvious intention of this 

provision of t he co de is to cov el~ all vvorl'::ers , except those who are lli1-

sl:illed , wl10 2 re ent;abed in t i1 e mc:king of '!JOCketbooks . The only 

question to be determined is: when is R ~w ·worker coming into the 

trade as an ap;1rentice c:md: engD.cec3. in p ocketbook-_making , f r amint; , 

cut t in3 , opere.tinG or 2.rinE; , to be consid.e re d semi-skill ed? 

Our t:tnswe r to t h is question is tha t a maxLnurn of three months 1 

eX'Jeri enc e is necessar;jr to be ret;.:-' rded ns n semi-skilled worker in the 

industr y vii t h in the meaning of t he code . 

To defi ne 11 semi-skilled11 , a s the committee defines it , is to 

nullify tHe intent of t he ry rovision of the code anc1 to render the enforce.~1e!1'G ".i1Cl corJTl') li C~l1Ce of t he ·)revision tot ll~r i m1)ossible . 

The clefi nitions contained in t he rep orts of the majority and the 

.nino ri ty of t h e comrni ttee are unsound as I shall presently show. 

9°1 
First: Cutting: The de finition of t~1e mnjo ri t-, excludinc; pa:.>er 

w.,_C:_c.in::; c:m ·:~ I'1J.iJ0 e r-cloth cutting fron t ne se.ni-s:.:illed ·wovision is 

. -.; -- · ~ o !t; :.lufacture r ··ill tru'"'t P..:!Y lec-.r ner to cut o;ny mc-.terial s , 

w~ ett1e1· it ·0e outsides (that i.s l ee.t! e r, sil:.: , e tc), or linil1L> s , o:~ 

ya )er, or w,:-.dding , U.'lless. t i1e cu tt er r:e.s e~::~e ri ence , since it r eCJ..uires 

precisio~:, ::novlled.;;e of 111£-.t,...ri als a_ld sl.:ill in 1J.n.ndlint; a sheC"r-cuttil1__; 

or clicldr::; macl: ine to do ~1 is o:::- ~: . ;·ost of -c: e metnufucturers i n enc';n.~; :_., cutt e rs, even i!l t ' e out- of- town nXP.etS, t r y to .::;e t vvorkers thc.t 

have P-X~)eri ence in hru1dl inc; machirl e s. 'lhey {;e t e i tl1er shoe-cutt e rs, 

cutters fro~1 bookbinde ri e s or ot !e r l.: nc rec:. L1t1ust1~ ies, one. it t ;'_l;:e s a 

very s~: ort time for this k i nC'. of v1orl:er to C~.dnp t h i mself to tLe hand'ue.c.; 

line . If a nC~nufactur r shoul d. ~}::e v.n ctltoce the l' ine:A'"Pe rienc ed or:.:e ;.~ 

to io r~ : c-.t -Gi."e 1.10.chine , h e rfill fine'" th ..... t it vvi ll t .... l:e time ai.1d ap·)licatio:! "Jefol'e ~.!. e vrorlce r will ')e nble to ,~ t SC1.tisfe.ctorily even t he 

abov e :-Jentione,_i i terns, such c-.s ·'o:Jer, wacld.ini; Md. :ru.bbe r cloth. 

Second: S:i.1e d.efir.i tion o f ~w mi no:ci t ;7 vii-.ich excluo.es ho.ndle 

lL_i::.t;s, ~lull rs, 'Juller li··_i n;:;s 'il<3 . .::,ussets ~l<' t c:.r e cut by clicke1·s , 

is a r3.efin.i tion thP..t Yloulc1 ~~ ce 50,~ of t l.e cu ttinc_; branc' of t~1e inC:.us·l;r'' in t h e llilSk ill ed. )rc: :J.c . ~lle cutti:1t_:; brt.".i.1Ch of our in d.ust~ is 

co ~1 eded by all mo.nufacture:.·s as oein:; t 0.e folli1d.o.tion of a f a ctory . A 

cut te:t has to hc.ndle D. 1-~ if , or~: D.t c: . h azarclcms click ing Llachine or 

shec.r-cuttinc:; rt1C~ c~ ne , and rrmst b e constc•11tly on t h e lookout to save 

"ncl econoc ize on t J.1e I!lC.1.t e ri0.ls. 

Definition of Opero.t i nt; : .AJ.w c:!.tter:1,,t to t pJ;::e ~)art the v arious Ol! el·ations in O~ er[' tin.; is, to my minC. , r·. ---.u:.~e evasion of t he p rovision of 

the code. I f we a re to consi cLe r t Le d.efini tion o::: semi-sk ill ed as -n·o-

::,>osect , it vrot:.ld ITI8ke it im.:_)ossi'ul e for :~e ulc:.jori ty of t he op e r c:•.to:c s to 

receive t b e benefit of tl:·_e L'..:~;~ ::) el' hour. I n consi0.e rin.;, t :1i s :" rovi sion 

of the Cocte , e.fter consi c.erable debate , the only exclusion conceded. VT['.S 

linin.; :::>e ti ng . If other operatinG was to b e excluded , it was 

stran.::;e tnc.t there shoul d have been e, li•1i t a t ion on lining s ; and eve:t1 

on l L:.in_;s 'G l: ere are certa in ~;ero. tions , such ns ::.'Uffl e-pocket s , sevrir.._:; 

on of ~~ i ] i ncs , et c. t hat are hit:)ll y sLi lled. 

Defi::.i tion of Fr.o.mi:It::: In its 2.ttenm t to e,·clude -ryur se frLU7lin._:; 

fror,1 t~ e se:-Ji-s~· ill ed , i G woulc1

. "Jut 'Jn.G- f l'r•mi nt; , w:dc': is one of ~le 

highest ~) d 2nc'. most s~:ill ful opere1.tions L1 our ir:clustry on t'1e lmtest 

level. ::o beE,i nners C<J..;.-1 fl~ rcue :;;. T)Urs e lli'll ess :w is 0roken in 811d vrorl:s 

ut it cons tan tl:' for a num'b el' of wee~:s , nn cl. even hour~h t here a r e l e bor 

saving C1.evices and rnachL1e s ~ ich ~ .".ve lat el y been intro(l_uced for 

frruili:1t; ;;unoses , it woul(l_ still necessitate he.l'cl npplice.tion tmd ste:c..d;,' 

--) ractice oefo re a worlmr C<m fr ~me a -1urse ·;ronerl y . It is my 0:9inion 

t hut thel·e e.re no unskill ed Horl:ers i n t ' e frp ... ::air:c; 'Jr DJ1Ch al tot;e t her , 

tl a t all t h e work '!e rforrned on fr&-ning is sldlled . It c ertainl · c wmot 

be d.efinel. as l ess t nan ser,1i-ski lec~. . We oJ ject ac.,ainst this ::,> ro:r>osed 

defini tiOi.l c: s tencl.inc:;, to breal: down t "i::e standards of a branch of t he 

ndus t~-y t b::.t '1as for ii1e,ny years been fairly "vve ll ~1 aicl . 

Defini tio~1 of Pocket'uook- maki ng : T~le defini tio;.1 of s emi s~:illed 

on ·?ocl:etooolc- r;:AJ_ing a s c~ e by t :1e majority as rrel l as the minority , 

is confusil1G "'nt, it will w2ke it a.l to; et 1wr impossibl e to enforce co.1-

)liance. A semi-sk illed. worker in t~1e p ocke tbool:: brar~ch of the industry 

9811 
-248-

is essential l y t h e one t ha:i; C01.n do turnin.;-in cir c>.ssBmbling , wh eth er 

OL1 siL:, leat ~1 , or o.ny o ther l:i nd of mHt c ri a l. Sinc e t he worl- of 

1)0Cket'! jool:- nc:·.ki nt; is s o se ctio w,li zeC:_ t hat eve r "Jr worke r -'!e rforminc .J. is 

·p .::ct i cul ".:c ··< r'C is s~>.: il :Z l 2.110. efficien t , ther e is no reason to d e;)rive 

tr: ase vro .. :l-:e :c·s os.' t!1e :c·i c;ht of ear n i n;; ~~5¢ ·9 cr hour. 

Unl ec·s the defi ni tion of s emi-sl.:illed i s ns su ;:;{;ested in my rep ort , 

there wi ll ·ne no -?,c.equate Yv[>,{_;e -..., r ovisio--1 to :':)Tev ent unfa ir co m;1eti tion . 

Ph i l i p Lubliner 

9811 
-249-

COD:t: AU'i'EO?.I TY 

303 FIFT:::: AV"t::ITIJE 

E::ZY. YOJ{K 

kiey 1 s t ' 1 9 3Ll -

.-\..~::::ICL:= C. The Definition of Semi...Skill eel in ..,r2.minf; 

All fl~vmin G shall oe consi der ed serai-skillec exce'2:)ti~ g t he framing 

of )Ul. ses not a t tnche\5. to fr emes. 

~~TICLE D. The Definition of Semi-skilled in P2ring 

All errroloyees enba,sed in )e.ri n{; shall be considered semi-skilled. 

Tlli s c.efini tion W[I,S nl so voted for by p. Lubliner ~ addition to the 

four Industry Tilembers c:>1rec:>,dy recorded . 

AR~ICLE E. The Definition of Semi-Sk illed in Poc}:e toool: i'.i.iking 

All erirployees ent;a,ged. :.n ·)ocke tbook makinr; D.re consiCl.ere d semis'dlleC. e::;~ce~'J t turning in handles, tucks or loons and a ll tabl e wo r l: 

on lining s . 

AP~ICLE F. 

The Comrai ttee at;rees t hv.t no T,le i..·son shall be consi de red semiskillec. on Dny of the above operations unless he has been employed on 

anJ o~)er tion for a period. of six !7lonths. 

9811 
- 250-

~-ATIO_~AL ?.ECOVE ... Y ADEil~ISl'Rii.TIOH 

•:iay 3 , 1934 

.~ . Rosen'ulatt 

F:rt0i.! : 

SUJJECT: Definition of ser.1i-slcilled in Ladies :SandbaG Code. 

Att ~ ed hereto is the r e')Ort of t he Cormi1i ttee on the Definition 

of se'Jli-sl:illed vorke r s in the Eandbat; Indus tr~r . In pursuance of 

t n e 2.greement reach with Colonel Lea, }:r. T:IcGr.:1dy c?.ncl yourself , a 

drt e will be se t for heari ng on t~is fi itio . 

Ii1a s:-mch as t l1e question of representation Y.ri ll be p resented 

as soa r:. ns the mino rity members of the Co cl.e Aut ol~i t y have forwarded 

sucl1 a resolution to us. I t :t.int . t l:e elat e of hearing on the definition shoul c be held open until He hav e both subjects to consider at 

the s c:tme time . 

9811 

Earl Dean Howard 

Earl DeM Eoward 

DeputJr Ac\Jnini strator 
- 251-

CODE AUrr:r:O::ITY 

LiWIES 1 :-=-...AI:D~AG Il DUST::::Y 

-:r . Ec:.rl Dean nOV/(:I,r d 

Deput:,. AcLmii1i strator 

Cor:rrne rce Bldg . 

"i ['.shi ·1gton , D. C. 

Dear Dr. Hov12rd , 

003 FIF:L'E AV:::ITIJE 

17:2W YOPJ{ 

At a re;:,ul a r r.1eetir....:; of t:".e Co d.e Autl~o ri tv hel d. on Lay 10 

~e Definition of Seni -S l~l et orke r ups aGain uresented 

for consideration . At t l.e r eque st of the Co de Autho rity 

!rlemlle:· , t.~ . Geor.:;e i.ieyers , t he consic1.er['.tion of the 

JefL:i tion of the Semi- Skillec' .7orker \Ir-s 1Jost p o?.1ec. until 

·i:;' e n ext re5ular meetL1f; of t he Co d.e Authori t y for the pur-

·;o se of c ivin.; our Administration ;embel , i:r . O. IV . Pearson , 

2.:: o:y~ortuni ty to become a c quaint ed wi th the industry and. to 

enable him . to stucly t he purposes and t'1e effects of t he p roposed o.efini tions t hat :.=>.re to be suomi ttec1 by t !·e hajori ty 

2.;.1c. t J.1 e minority re,)orts of ~1e committee. 

Ai :i ttenthal/ edl 

Ver>J truly yours, 

A. . ~itt e:..1 tl:..al 

Co de Directo1· 

a~ies 1 E8nuba..:; Industry 
I 

9811 

NAT I Ol AL ... . ~C07 :L:.:t: .. Oi:I~~ ISTRAT Oll 

VlASr:IlT 101: , D. C. 

ir . James C. Worthy 

Room 4081 

t;5 13roc.~d'.7ay 

!Jew Yo1~k Ci ty 

DepEl rtment of Com.;nerc e Bui l d.inP;; 

H ashi;.1gton , D. C. 

De::..r !.ir. Wo r thy : 

r.~ay 17th , 1934 

This is merel y to r e:?ort ~~ ro ;_.; ess on t he matte r of 

the cl.efi 11i tion of se;71i- s::ille d. r: r~.:e s in e Ladi es 

l:anc.be . .::.; I nductr;;,r . 

I have v i si t eci. a numl> e:c ~' fr' c t ories he r e in l-Tev;r York 

cl.u:cin_; t'::i n v7eek 81lc'. on .l:r .. esc,~y ar1Cl. ·;J ecmesday of nex t 

vree , I ern 0 0i n '; to ;et t.i me off t o vi si J.; s ome ou t - of -

tonn f.:. e;t ') es~ as I ['J.l tol ··. t : a t tf>e ::-- ro c esses i n t h e 

out-of- tonn facto r ies arc "'OLleWilat d.iffel~en t f rom t h ose 

in li ew Yol'k Ci t y . 

I wi r ed you t h i s r:10rni· G res::._) e c t i nc.; ~1e budGet , a copy 

of whicl. I enclo se . I a;n P e. l oss to u nd.e rst and what 

ha _nened to my or ~in0.l ::-~ ,;-~ ::oval , -out I C<:'.nnot f ind any 

tre.ce of it here i 11 t~1e office , If ym_,_ desi1·e i t , I can 

erl,.1.r :;e upon these tel e£,:Cr' ·as Y;D.en I reach ·~7ashing ton , 

St:.turd.ay . 

Yours ver:,- t rul y , 

0 . ':f . PEA:: SC)l\j 

.AD ~ rr: r: 3.AT IOI~ i'.lliriBI2 

0 ·;p : DA."tt 
Jun e 21 st, 1934: . 

S~AT:::; ;.IL2 0:? L.A.-l O£-: C~: l .-3 s::: .I-SKILL2D r O~.l ::t,.ri) 

0? :::<::: l) OC:;t:=r:L' JOOl: L-:J S':27.Y 

·rhe lmL~ rsi .;:, ec , r.ft e r Lc:wi n..:.; ::;.:;t in cor1ferer c e wi tr. tr.e ren resentnti ve of t~.C' er:: :loye r s 'co cla si f.,i ~nc.. define t :.e semi- sl:illec: 

worke rs i11 t l:1e ind1.~st1-:' , hP..V? 0 i ven ch.:.e co :t1s c"_e-~ C'tion to t . e subject 

matte:r ·oefore them. Our conclusions, ·ba~ ed. on lil::> .. :n;.· ye;:>..l~s i n the industr:r, m·e p,s follou s : 

Jefinition of CuttinG 

All cu ttinc; oper2.tions ;;.re sl:il].erl c:.( s emi- skillP( OD Pr ... tions . Fo,u 

ts.l. , . ~ .L. • , . • ' t . ' ' OU v r'JiC.ll1.::_ !,l llUI "l.C v i'Cr ~i 0 1 "C 1l8 lllCcUS ry n·~.v e [' r_ :.:eec. 1 ; . C\. ::'reviOUS 

discussion o··1 tl"..e l~v sn.r.1e su~)J ect to t.re fo ll ov!ill' : L J 

11 All cu.ttinc.; y:~ -.. tio :'l , e:;:::ce )tine "l<''ler , vt clcli11.:; and 

r1 ~."u ber clot::.. cu.t tin{:; , r.:·e to ·J e c onsi cl.ereC.. semi-sldll erl. 11 

The follonL:r: co:·;:;·.:li t te e ;·ne.:.1be ::.~s :1n.v e si :.:;ned t !.1cir na:i1cs to t hi s definition: 

I. Sc: oenhol t z, c:1ns. Wolf , S . : .R. ~sE: r-nd A. Gl'Cel b o.um. 

]e dis·1ute t he exce·.)ti ons to p8.!)e r vtaJ.Cl.in,:; c:>.ncl rubber cloth cuttia ._, , 

<'.ncl asl.: tJ.:at t hey "ue includec: ;:1,s sl-:ill ed ancl semi-sk illed op ~t ions . 

Definition of ~e r[l,ting 

All Oi) e r vtint; on ou ct.e v1or:.: , li nings, hf'ndl es , pull e rs , et c ., 

must oe c onsio.ered skill eo. or se: i-s 5lled op e r £>.tions. 

'lne four above :nentioaeci er.lj_)loye rs 1lcWe .:;one on record vd t h t ' e Coc,e 

Autno::.·it;:r :or t i~ e Lndies' .C:2n db2." Lvlu.stry on t~ .e question of definil'1b 

the ser:ii :illec~ oper 2.tior-s i:1 t he o~)e tine:: "J r C).nch of tl e traci.c DS follons: 

11 AJ.l outside •:m r;,_ iu~: s -c>~l be consi de:cccl scr1i- skilled - __. 

ezc e::' t ::cncll e s . 11 

1he undersi &:;ned : rerres ent2.tivez o-f l abo r, cannot mc;):e it too 

em:;>hatic t:1at ope rc:.tors on :_an~' es hr v e c>.l vrc-ys been COilSidercc1 i n the 

[e\7 Yo r:.: raarke t on an equal pr,;: with e- ll other opcr ntor , bccnus 

op ti::r.1 c; on !lo .ndles req i:~ es s}:ill , c."o ili t~- , l:nor1l ec'ge anC: e:,:pe:·i cnce . 

T~1e 1l f' c'..~. e is one of t he most r.:) ort C~nt parts of t he enti e b£>.g . "/o . .1en 

will :.'irst c1e tect C..e ~ectiv e ope r ating on handles . le ['.Sk t l..'l.t OT) er .... t-ors 

on ! <'l1c: l es Je trea ted on an equal pe.r v1 i tl o1 l ot he r O) e r "l,tors . 

The same must be s aid about linin ~ O-:J ~.t ors . 

Definition of se~i-S ill u OD Fr ~lin~ 

Our G.efini tion for l a·oor .:1.s fc.r <'.. S f r o; ~ .._· is conc .~ r:1 ed is <'.s 

follo·ws : All fr·N.lii<{; s1 e.ll be or:.s rc ~ s.:iller· c.Jl L scmi- s • .::illcc1 • 
- 254-

A co. t .1 · t.._ vee o f epre..,"r:'>. , J.,· ,{·v _l· ve JT'~ • .,.__ _._:::u ~ ct "U..re::t> con istin~ ~ of 

. , lt c ... 1• .. ~ . . ,·si ,_ c'"JJ1l. s. S.i."'ee .. ~)r un , on fl ·_)revious I . ;:,c •. oen .. o z , 11<'-s . . o .1. , u . 1 .P-- -

OCC.".Si Oi! c' efi:ilCd framL·1 ~ (.S :,_' 01 lor.rs : 

11 All irpmj n._, s~!F.ll te con sic' e ::..·pc sc-ni-s:.:illec exc eT>tint; 

rll .. m rses :i.lo t r t-c ..... cJ.1Ac1. to f r a··Jes . 11 

1.::: {efil i tior: fol~ l n'u o:c· 011 ser:ti - skillec' 011e1' tio::"ts i n '"0 0cketbook-

:"l.,lcin"' is: All !Ol~kers en ;.:--. ei i:J. ·Joc::e t oool:- :-J.:-·::iYlg <'.re to o e c o::sic:erec. 

sl:il2.e ·. e.:1cl ser..i -s~,:illed . 

J:l:le aoove li1e.ntioi1ecl. fm_,_:t en ·l 0ye rs ~l; e defL1ed semi-sk illed 

on er~·- ~ior~ s i"l ~. e ~~ ocl:etb o~~ .-:~ ..... 2.in,~; ')l'['ll1C."I. of t he trr.c-;.e e.s follows: 

11 A2.1 em·)loyees en::;c> ~- 8c"·. i n ·_:>oc::et'Jo ok- i1r-2:inc e.re to 

·Je consic1.erecl. semi - s::.ill er , e:-:ce·.1t turnL:..::, in 

~'['. 1dles , tucl:s or J.o o~1 , am1 e.2.1 te.o l e ':.'or]: on 

1 ini:1c:;s •11 

·:. o ::1".0\T fro111 our own e~C":>Cl.'i "'n ce , rnd. t :::.P er lo~r rs in the City of 

Few '{ o:c~: l.e.vc always concec\ ed t C..2.t turnint_; in :1.:.nclles , t-c..cks or loo·_..,s , 

a lso k·. l c worl:: on linin_ss, r;.·e ~: ll ecl ope r c·.tions v:hich for ye<'rs hcwe 

oeen ')f'l':'o r ::;:ec' ~F sl:':ille c. '"0 0Cl".':e t1)0CJk . :r:1l~e rs <'nc:t cl assified 1 el ne rs 

( cl<'..ssi fi eC:. }lel .. "lc rs J.J..:-we o.lH2ys :cecei ved anG.. a:L'B recei vin(; today ['. minimum '·' ... e of no less t l-:.:·.l1 y23 . 31 n3 r vveeL:). 

Delini tion on Pe.r; Yl_f; 

Our c'efir:ition for rb o::..~ on t i:e 'J.:• ring oranch of e industr1 is 

C!'I,S follorrs ·. All e,.,,l o,rpoc- e11 ., eel 1· 11 ""'".J.'l. ;1 ·· sl ·1· v; 11 -· snli ttinry or •· ~J tl .. , v u '- ~o ~ · ·;- r " - b t _.._ -'- o t _.._ - D 

ed.:;L1 _; , 2-Te ;;Liller'. o:.~ to so:·- tie l e.:1.st, semi-sLil2.ed operations. 

:~ess ~s . I . Sc:J. oenh oltz, c:10.s . :"iolf , S. ·.:a:.:sil:: <:>.nd A. G1·eenbaum, 

fo·_.r of t~"e o-c:.tst ~lc.in.:.; l!1['.nufacb.::.rers of our in.(ustrJ, have actually 

agree' to t1 is d.efinitio:;.1 . ~~e C:..UOt e f rOrJ t ile l' el?o rt suomitted. by 

r . I . Sc:i.1 oenho ltz, ~ain1an of ~1e committee , to tl1e Code Authority of 

the P.c'.ies 1 :·r>ndbc._, I ndustr;;r, to wi t: 

11 All e:-a'1loyee s enGn~ec1 in p 0.rint; (meC1.Y!L1L; sometimes 

skivin:J shall 0e considered semi-sk ill ed ." 

7r..e -c:.nclersigned laoor re·nres8nt ··ci ves of the corrurti ttee are at a 

l oss to ur.ders t r'.lld VJl:. t!.e tv:o re:::n·esen tt•.ti ves, : :e ssrs. Golc.srni th. e.ncl 

A. Grecnb<.un , ,x.rticul E'.rl .. :- the l <• t t e r , shoulc. he.ve &one be.cl: on t 'l1e 

defL1i tion oi tJ:.e p revious corrni t tee of four er'P "l lo ~re rs, of whi ch 

·,r . A. Greel Jeum \7p,s a member , r.nc. nttested h is n n::1e to the d.efinitio::s 

of t:1., n·e viou s 1e ort . '!ne cor.u71 ittee o; l abo::..· on ·n·evious occasion 

wn.s not srtisfiecl rti tl1 t ::e c1efini tion o f saiC. cor;r ti t tee of foul~ 

om·)lOJ' rs r(_icl.l constituted t he r.w.,jo1·i t .:,- o·)il:.ior o: the emDloye rs of tl1e 

industr" , <:>n<. H.J '. nc.llc~ ti:at justice 'b e cl.one to t J.: e skilled v10rkers 

of t 'y, i1:ci.ustr" w::o , oecanse of circunst[:.nces , h ,..,ve "been nick1c9med 

smni- sl:illec rmrl:ers for t ne sol e -yur_J ose of c::.int~:~.ininz; sub-ste.ndc>rd 

COi1C1.i Gions i'l .11em~,r s~ ops i n ti.:e inC:.ustr~r , cmd. for the fm~ther ;_JUI'}_)Ose 

of !'" Jf'tu ting unft:'.ir l t:'.bor om~)e tition in the tr<'de . 

9811 
- 255-

'.Te 1:norr frora our ovm experienc e as wo r kers of the industrJ' fo r 

over tnent y y e a ::cs , t }l,",t c.. cutt e r, O}Je r c.to r, cl-:e book r.1etker , f r c:uner , 

:!}arer , e tc ., af'G e r h<.w i nt:; he,c1 e;:-_1 e r ience of t~1irt ;>r d;,_y s to t wo months , 

consi c'.e ring e res nt mode r ni zed t:1n r". eff i cient r:1e t l1ods of oduc ti on , 

is entitleo. to be cl a ssif ied. a t l east e.s a semi- skil led. worke r and justifie d to t h e nL1i li1U...':1 s c o..l e of 1~ ·'l er :· our wovi ded for in the Code of 

Fair Co:-:ne ti tion io r 'c :-;.e La C:.i es 1 ~nndba{; Inc\.u stry . 

(Sit;,1.1ec1.) Ph ili"J Lubl ine r 

.:-.elJ::cesei1 ~~ ti ves of Labo r on the Com.1i t te e 

t o defi ne the lled Pr ovi si on of 

t l e Ladies 1 :-=e.nr._bfl;; I ndus t r y . 
9 11 

- 256-

R A D I 0 A 

· ACJ AY -:· lJJ I 0 

T1 e I nternnt i ona1 S. st er.1 

1934: Jun 21 PM 

··:a27 262 COU1T1 PCTlTS - AS HEW YO:?J<: NY 21 4:2L1.rP 

DAVI:U 3JL-:I 

ASS ST.Al ~T DEPUr:::'Y .AD::R APP.fu-:::EL S.£::CT I OE DEPAE'f l.TEr:T OF 

CO ,ii'JC? E J LDG-

~:-~ FOLLO .. HrG A?.E DEFilii TI OFS AG?~~ UP JO I1T7LY J Y 

IiiD'C"S'::RY L~~:J3P.. S O:L' TEE O~ .. il.'I SS IOl S1 0P LA30R DE:r'I NITIOlTS 

liOT ~AD OP HI LL T£jL:;:;G?APE .i/EEIJ ?3CEI VED STOP Fll1I TION 

OF S3I:I SKI LL::::D 11~ CU7TL7G: ALL CUTTI HG OP ~~:AT O~T S Ar-:E TO 

33 CONSIDI?.:SD SELISKILL:SD , ~X :::P':i:I 17G UT~' Il1G PA ?., WADDilJG 

02 -:: :J:;jEF: OP. Lii~IlTG CLOTE , Al!D EXC~PS:E G :fJ..i\FDLES, liAliDLE 

LI~:U7GS , PUL E~ , ?GLL.:.:R LnTI1TGS, GUSSETS AED Sl'.:ALL T:?.Li:uii HGS 

T:-=A7 AP.E CTJ:::' J r CLI CKERS STOP DEF I:i. OIT OF OPL;?.A':liNG: 

.11 =:,:ctA L~G IS 10 :J~ COl IDERBD SEi.iiSKILL:CD, EXCEPTE JG 

LI:i. :~C- , E.AlTDL£;S AIJD PU L~RS, S:SWI FG A::D Szi!Ii.m OF 0}' n.AIJDLES 

).:.-D PULLbRS , .AlTD SErliJ.:G : LI!.7Il .. GS E i1'0 T~...D :BAGS F02 FRAHE 

FU?.POSZS . STOP. DEFL·TITI Ol; 0::::' S:Gr.;I SI:I LLED Iii POC ~':l K 

~ :.Ar:I i::G : ALL ·,-;o::uc:?.S ElTGAC·:=D H·i POCKET:JOCX l-i.AK ~G :UY F...AlTD, 

.A.?.:S COl DE:·j:;D SE: :I Si:I LL:SD, EXCI:I'':l T\.JR:tJil:G I H TDLES, ':lUCKS, 

LOOPS ~~ C-USSE·:2S, 0::: EkiGilTG 01T ?LAPS, .ALSO EXCEPTilJG .!\11 ':l.ABLE 

""fO?J<:. OF LI ::L··J.S . S70P . D::::FEiiT I Olf CF SEI,'ii SKILL:CD Ii.! FRAiJIIJG: 

ALL :-?...Ai.!I j.-G- Sl-::.ALL :=:, ~ COl~SIDE?3D S=:i' ;I SKILLED E~<: E?r:::' JG ALL 

t;~.SZS Aiill FF.A: ::r:; POCKE·:rs . STOP. DEFHJI TIOF OF SE!.iiSKILLED 

~ P _k_:-_Il1G: ALL r.ro:rJ(3::S rir:.D D8 P .::_:r.ETG Oil ? _._Rl ·JG I iACn i 13S VfnO 

.Ai::.. CAPA31~ OF AL~Il~G ~=L T~C::;S .A}W CI-::.A!TGES 0:2 GAUGE , Kl;I :?E 

J'~- D :CL:E::ii.Y 1if.r-::LEL Oi.T A P k:Il~G :.:ACEL-E !~ALL 3E CONS IDbRED 

S3L ISK LL=D :WZCEPTI HC- ':l!:CSE VrRO P ;~ ~::Alm :: S, 'J.'UCKS JIJID 

GUSS2':!:'S . P. 7EE COl•} .I T':lEE AG:?GES TEAT EO PZ?..SOJ.J SF4!\11 3E 

COFSID:?..ZD SEHISKI LLED ~: ANY OF 7.!:"3 A30VE OPL.LUTIONS 1.IT:LESS 

r=E EAS :EJ.~ Er'iPLOYED Ol .ANY OPERATI G:!:T FOR A P:::RIOD 0? SIX 

i :OlH!iS S10PA l:I :' ~E TE.AL CODE DI :RhCTOR LADIES t-=AliD:SAG I NDUSTRY 
....,. 257-

DEFH IO S OF S:;~. I-S1-ILL:2 D ··JO?T ertS AG:t.B:SD UPOn :BY BOTH 

E-DlJSlRY ~P:..:::S S~l''1 .~1' IV~S 0 :£ ~!-.::2 CO::riSSi o· ; AP?Oii:TZD :ro 

DE:'.'Ii.E SEi :I-Si:GLL:D ?~ 3.? 

All cuttir-.;; ODe r :--.tions :->,.r e to l.Je con id ~ L s emi-skilled , exc e;tin0 

cut tine; .~) er , rr o. G.in~ Ol' ruob e r or 1 ining clo th , C' 1c'. e::c e , ting h an cUes, 

ha."lci.l e linir:[;S , -'"\ J.ll e r , '.Jt:.ll e l' linin, ·s , .:,us se t s (IJ1d s:71.all trir.1I!li nc:s t n nt 

are cut 0y cli cke::.·s . 

* ·* * 

All Jer .:- ti:J. b is t o l_} e consi dered se;.1i- sk ille:: , exc e·Jtint; lining s, 

h:.mdl es E"ncl pull ers, sev:ing :1 c~. s ewiEE; on of nancUes and "'1ull e rs , 

rncl seni1ll, i :c. L: in s into t' e ba;s :or fr::ne pu 0 ose s . 

* * * 

DZFL TI ·:dOE OI' SEMI -SKILLED I E POCKETBOOK ;.LAK il G 

All ;-rorl-:e rs en:;E~.g ecl in pock etbook DE'J:ing b~r hc:nd, 0re consi de r ed. senis}:illecl , except tur;.1 inE; in l:c>J.1C:.les, tuck s, loop s or suss e t s , or hru1t:;i nG 

on fl2ps, a lso e;cce·:;_, tinc all table or ~ on lining s. 

* * * 

DZFI 1TIT IO~~ O:t' SE?.ll-SKILL.DD E J nJG. 

All frami n.; snall ·oe considered semi-skilled excep ting a ll :purses nnd 

fra::-.ue 'Jocket s. 

* * * 

D~FLTIS:IO:i.T OF SE: ii-SKILLZD r:tT P.ARING 

All \lorke rs who do p [•.ring on :vo.ring machi n e s who a r e C::l.pabl e of tlaki ng 

the necess ?~ .. ry ch13r1ces of gauge , k nife and eme r y v7heel on a pnrinb nnch ine 

shall be considered semi-skilled exc ep ting those v1ho p[l.r e hMcUes , tuc~-::s 

C'.n c: cussets. 

* * * 

The CoG:ai t ·cee o.g :ce es thnt no lJe rson sha ll be c on si dered ser. i-sldll ecl 

on an~r of t he abov e op e rgtions m1l e ss he h a s b een effi"Jlo e c. on a:ny 

oper tion for a uer1o d of six months . 

9811 
-258-

O:?.DER 

CODE OF FAIR COHPETITION 

FOR 'iHE 

LADIES ' E.AND:aAG I NDUSTRY 

Ap~)oint in ~ s'9eci0l comraission to study l abor conditions in the 

Lo.dies 1 ::e..nc.ba.::; I ndustry. 

A Code of Fair Compe tition for tr. e Lac'.ies 1 EnndbaG Inclustry ha;vint; 

been 1 eretofor e a:'J·•roved on i.iarch 14, 1934 , and it beinr, ryrovided in 

Sectio;:: 2 of Article IV of saiC. Co de , t hat "no semi-sk illed. employees 

enga._,eC: in cut tin::; , franin , :?Hrin.; , p ocketbook r,lpking and/ or O!)Pratinc 

( e::ce:9 t lininc; , o::~er :'l. tin.; , cementing and/ or ba.stii'.g) m~• loyed in the 

ma;.1ufo.c ture of C~ny of t: e lJroducts c';OVerned by t 1'le n1·ovisions of this 

Code r, ade of any mc:>.teri o.ls otiler t hem i mi t ['_t ion leat!1er, si1all be p aid 

at no less than t ile r 2.te of 45~~ per l:our11 ; ~'n d 

Tile ap"1lication of se.i d Section 2 of Articl e IV havins been steyed 

by Sec tion 1 of t he Ad.rnini strati ve Or C:.er of J:i a:.~ch l L!..: , 1934 approving 

said Code until suci1 tL1e as tl:e Co L-le Anthori t y sh all p resent to the 

AdraL1i stretor 8. de fi nition of t he terul 11 semi-sl-:illed employee" wnich 

receives t: e approval of t he Aw11ir ... i strc>_tor; .:md 

Z1e Cod.e Aut h o_ri t y l1-e:w fnG been: unable to ) resent a definition of 

saic: ter::t ncce·Jt e.'Jl e to the Adraini strator nnd C'.l l other attempts to 

secure a satisfC'.CGory clefinitio}f hayint; failed; Hnd 

It bei n£ also ? rovi ded in Section 5 of Article IV of sai d Code 

t:1at " T!1e .Aclrlli i1 i stra.tor may Ul)On recorrunendation ~r the Code Authority 

Cl.nd. aiter full study D.ncl investigation by t h e Code Authority nnd after 

sucil not ice .nnd hec:~r in t; p,s he shall prescribe , establish as a part of 

tlis Code such basic r a tes for tile mo re skilled cl asses of employees 

as ii1D' br: ne cess e.r~r to f u rther effectuate the ·t)urp oses of the Act; c::md 

It E'.p)eo.ring to r.1e necessary , no t w·i t hst andinc t hat the Code 

Authority has mao.e no recornmendD.tions as to t he establishment of basic 

rat es fo1· the mo r e s:dlled classes of er:llJloyees , th[l.t a study be made 

of ~he Industry to determine the d esirability E~nd :Jracticabili ty of the 

establishment of such basic rat e s; &1d 

It bein~ also provided in Section 1 ofArticle III of said Code 

th2.t uno eLip loyee sb<:1ll be ---,ermi t t ed to worl: in excess of forty ( ~0 ) 

hours in eny one vreel:: nor in excess of eigh t ( 8 ) Lours in any twentyfour ( 24 ) hour period; ~d 

r.e conrilend<=~. tions havin.::; been mc01.de to me tna.t sai d hour p rovisions 

has 1ot t enccd to effec t uat e the ur~oses of t h e Ac t by the relief of 

unerinloy-i,ent i t'lC Industry ; c?.nd - -

9811 
- 259-

I t ~e ~g also p rovided in. Section 10 of Article V of sai~ Code 

~1e.t 11 no Tt1ei.10er of tJ.1e nclustr~r si1all 6i ve out vTork to be :~e rformed in 

C1J1Y ::.oDe o1· :::"1..\vellir..g ~_, c:. ce exc e,t t!1at t r is : :..onibition shall not a"'!ply 

o hand. beadint;, hand crocheti ng o:c l c>..nd. e41broideryi:ng , and except that 

and sewing a t home s!lf'_ll 'oe ~e rmi t t e cl. until Jul7 l , 1934: , but not to 

e ·;enJi tteo. theret::ft e r. r:2 :e Code Authori tJ shall , in conjunction ni th 

uch St o.t e G-overm,1en t s a:.11c\. sue' d epD.rtmen ts of the Federal Government 

:.nd such other f' . .=:;e:.1cies D.S t ne Acl.E1inistra tor 11lc.'1Y designate , study and 

· nvesti;;at e t: e _J rohlem of :10mev-w r k in t his IYldusti)- e.nd shall make to 

the Acl.r. i ni stro.t or recornuenc.c->.tions for ~:..e effective unci appropriate con-

~.~rol of sue!: !J.OE1e':i0r:t~ 0.s is :1.e rein perni ttec. . Shoul cl ~:e .:..dlllinistro,tor· 

ind it to ~~le best int e rest of the Industry or to .the best int e rest of 

abo1· or ot hervri s e nec essar;,T to furthe1· eff e ctuat e ~e J:ml""!oses of the 

ct, i'le me\}' furtJ.1er restrict or vJ:1o ll;y ·?ro!1ibi t tl1e ) ractice of ho:-nerror: 

n this I Eclustry"; e.nd 

It 2;p:9earing o.esirable t ha.t t-1e AdmiEi strator U11de1·ta.ke a study---

f ~.1e -;1·ob l en.1 of 0E18\o Ol~-- in tJ.1is I!1dustr-y , inde~J endent of the study 

eins m<:>.cle o~r the Code Aut:1.ori ty . 

1T0\7 , THETI?ORE, pllTf.mal1 t to 2.uthori ty vested in me by the Admini sr [.'.tor for Ino.us tria.l ?.ecover:r and at· en.ri se , I do crea te an Admini strt:..t o::c 1 s Cor.1r.:1i s si oT'. f or the Ladie s 1 nendbag Inclus try with such lJO\ve rs 

.nci. duties ns are he reinaft e r set fort'h c>nd as lilc"'.Y 'be herei nafter assigned 

o it; and I do £wre·J- ap~1 oint as t!1e memoers of sai d Corruni ssion the 

o llou i ·1c; n nrJed ~)er sons: 

and 

Dr. Earl Dec:m ::o':re.:cC:. , Chaiman 

Arthur S. ~oberts 

Ca.rl Rauschenbusn 

I c'Lo l e re by ORDbR that sa.id Cornrni ssion shall uno.ertake ir.1medi.q,tel 

a stuc~y of t he l a1;:Jor conc.i tions in t~e Ladies 1 Handbag Industry vri th 

:trticulnr :ceference to the uneiT19loyment exi stin·; t ' erein, competition 

oetv-re en t he vari ous mar}:ets of the I ndustrj· , and homewo r k ; ? , n0. I do 

furtner 

O:tm::H that s 2.id Co·runission shall report to t}:e Ad.rninistrator on o·· 

efore August 15 , 1934 \:it!1 its reCOt'!1Llendations c:.s to D. definitior.. of 

the t e r o " semi-skilled employee11 , as to the feasibility of estc>.blishine 

as a pc>.:tt of s aid Co de b asi c rates of pay for the more skillec1. cle.sses 

: er.'I_'? lOJee s i n sa i d Industry , as to the "?re.cticabili t •,r of a furthe1 

eductiOll L: ti1e r.1axi mur.1 hour lJrovisions of t he Co de for tl.e " )UI' ' Ose 

f r elievil1G unemJloyment in said Industr-y nne~ as to the advisD.bili t y 

and )racticabili t y of furthe r restricting or of entirely elimina tint; 

· omeworl: L1 said Industr'J · And I do further 

OPJ)ER that t he mem'oers of said CorJuission shall 0e compensated 

or their services bJ t ile Code Aut nori t ,_,r of ~1e Lache s 1 Handbag 

Inclust!"1J. 

811 
-260-

'.This Orcer may be o odified or revoked c>.t any tir,1e hereafter. 

.A:py::toval ~- ecommended 

Davi d :Ban· 

Assistont Deputy Aclministrator 

Ap·of'.rel Section 

Dean G. ~dwo.rds 

Deput~ Administrator 

Ap·1<.',r el Section 

9811 

Sol A. ~osenblatt 

Division Administr ato r 
- 261-

E X H I B I T L 

Memoranda covering certain Amendments 
- 262-

EXhiBIT L 

i'vfEMORANDU tvi 

August 21 , 1934 

TO : J. G. Latimer, Division Leg81 Adviser, Division Three 

FRO if: George L. Berry, Division Administrator, Division Three 

SUBJECT: In the rna t ter of Approval of certe.in Amendments, pending 

to the Ladies' Handbag Code. 

The code for this inciustry was rEcently trP.nsferred from the 

Fifth Division to my Division, in '.nhich it is novr assigned to Deputy 

Berry in the Leather Secti on. At the time this transfer ~as made ther e 

vre re pending for the Administrator's epproval certe in amendments and 

modifications of st ay s under this code. Hearings having been held on 

the questions, the files were prepared and the Assistant Deputy formerly 

in charge of the code, David Barr, had prepared his recommendation 

recommending the stay order contained in the original order appr oving 

the code be vacated , and further recommending thet the pendir..g amendment 

be approved. 

Since this code has been in Deputy ~erry s h8nds he has recommended that these pending matters be not approved and that they be disapproved instead. However, subsequent to his recommendation to me in 

this matter, herewith attached dated August 20 , the Labor Advisory Board 

has been pressing me recommending these matters for the Administrator ' s 

approval. 

You will note from Deputy Berry's memorandum that there is a 

very serious problem involved of whether or not the approval would e~ount 

to the imposi tion of a provision of a code under Section 3 (d) of the 

Act or 1hether they can be properly approved under Section 3 (a) of the 

Act . Uill you kindly advise me of your opinion in the matter? 

There is attached hereto the record in the case ~n d tentative 

or de rs, as well as the report of tne Review Officer. Mr. Windsor, the 

code legal adviser in this case nrior to the time of transfer, has 

r endered an opini on vrh ich you will find in the files approving the proposed actions , but I am quite sure thet if you will confer with him he 

will give you informati on ~hich will be valuable to you in connection 

with this case. 

Since considerable controversy has developed es to the legality 

of such approval and \"'hethe r or not it vrouJ d emount to an imuosi tion of 

a provision of a c0de, I am requesting your opinion in the matter. 

In case you may desire further information, AssistcHlt Deputy 

~ho handles this code will, I am sure, be glad to consult with you at 

your request. 

L E ORE/ah George L. Berry Division Administrator 

9811 
- 263-

Le ~:Sa l Division 

Tuesday 

August 28 , 1934 

MEM ORA N D UM ---------- To : CRp t. J. F . B:1t tle~r, Ac t i ns Di vi sian Administrator 

Division III 

From: J. G. ti mer , Division Counse l 

Subject: Proposed .Amendment of Article IV Section 2 of the 

LADIES HAND BAG I NDUSTRY CODE 

I was·requested by Geo r ge L. Berry, Division Administr ator of Division III, for t he Legal Division ' s opinion regarding the approval of 

Executive Orde r amending Article IV Section 2 of the Ladies Hand Bag Industry Code, and in compliance with tha t r equest herewith transmit to 

'OU my opinion. 

Seid Art icle IV Section 2 re ads as follows : 

11 No semi-skilled employees engaged in cutting, framing paring, 

pocketboo k mcl<ing and/or ope r ating (except lining operations, 

cementing and/or pasting) employed in the manufacture of any 

of the products covered bJ the provisions of this Code , made 

of any materi a l s other than imitation leathe r, shall be paid 

at less than the r a t e of forty-five (45¢) cents per hour . 11 

Tne Order of the Administr a tor for Industrial Recovery approving 

said Code provides as a condition of approva l in part as follows : 

11 Section 2 of Article IV be stayed until such time as the 

Co de Authority shall present to t:he Administrator a definition of the term ' semi-skill ed employee ' which receives the 

approva l of t he Administrator." 

The proposed modifica tion pro vides fo r the de l etion of the word 

11 semi-ski lled11 and the words 11 made of any materials other than imitation 

lea ther" from said Section 2. 

The follo wing provisions in the Code have reference to modification 

of snme, to-wit: 

"Article IX Sectionl. T'nis Co de and all the provlslons thereof are expressly made subject to t he right of the President, 

in accordance with the provisions of sub-section (b) of 

Section 10 of the Nationa l Industrial Recovery Act , from 

time to time to cancel or modify an; order , approval, lic en se , 

rule or regula tion issued under Title I of the said Act and 

9811 
- 264-

specifically, but without limitation, to the right of the 

President to cancel or modify his approval of this Co de or 

nny conditions imposed by him upon his approval thereof." 

"Article IV Section 6. The Administrator mrtY, upon recommendation by the Code Authority and after full study 

en d investigation by the Code Authority, and after such 

notice and hearing as he shall prescribe , establish, ns 

a part of this Co de , sucn basic rates for the more skilled 

classes of employees as may be necessary to further effectua te the purposes of the Act." 

The examination of the record of the public hearing held in reference to the proposed amendment to the Code discloses the fol~o ing: 

l. The Code Authority for the Industry was unable to agree 

upon a definition of "semi-skilled employee". 

2. A substantial majori t., of the Industr;y members object 

to the approval of the proposed amendment to Section 2. 

3 . The amendment, while purporting to provide for a minimum wage , will in reality under existing conditions 

in the Industry, provide for a maximum wage for a substantial number of the employees, and , in effect , impose 

a wp.ge scale. 

Sectipn 7 (a) (3) of the Act provides as follows: 

"· .. t hat employers shall comply with the maximum hours of 

l abor, minimum r ate s of pay , and other conditions of employment, approved or prescribed by the President." 

Section 7 (c) authorizes the President to prescribe a limited Code 

of Fair Compe tition 11 fixing such maximum hours of labor, minimum rates 

of pay ,****"· 

The above sections of the Act are cited as excluding, at least by 

implication , the writing of wage scales in codes of fair competition 

and , in my opinion, it is beyond the purview of the Act to prescribe the 

maximum , as distinguished from the minimum, wages. 

The testimo n..r taken at t he public hearing shows that the great major 

ity of employe es in this Industry a t the present time are located outside 

of the metropoli t an area and that the average wage for such outside emplo ees is $18 . 00 per eek . The testimony also indic ates that under present conditions a weekly wage of $18.00 would tend to fix a maximum wage 

for the majority of employees octually engaged in the Industry. 

' It is my opinion that under the circumstances it is doubtful whether 

t e Fresident could legally impose the above amendment over the objection 

of a majority of the members of the Industry. 

9818 
- 265-

On the ground of ~olicy, I think the amendment is definitel y objeci onable because the factual showin.e: is not suffici entl y stron.g to justify 

he unusual procedure of imno sin . a moci ification of this char;:- cter ove r 

he obj@f' tions of a substenti.? l majority of the members of the Industry. 

·gl *mb 

I sl J . G. Latil.1er 

J G. Latime r 

Division Counsel 

JRA. 

egal Division ·rhur sday 

Septembe r 6 , 1934 

Colonel H. s. Be rry , Deputy Administrator 

J. G. Latimer, Division Counsel 

Subject : Ap~rov l of certein Amendments perteinin~ to the 

Ladies Handbag Industry Code 

I have t r ansmitt ed to Capt a in Battley , as Acting Division 

dministr ato r of Di vision III, my o~inion in ref er ence to the above 

subject matter, and have returned t o ajor 3erry certa in documents which 

e t r ensmitted to me, as follows: 

Re cord of Heari ng 

Fol de r conteining Order terminating stay of Article IV 

Section 2 of the Code together with sup ~or ting documents 

Copy of Executive Order approvin.' amendments 

I am r etur ni ng to you herewith the followinf: docu!:nents: 

NJemort=lndum of Alvin ro n dated Auf;ust 1 5 , 1934 

Memurandum from hevi ew D1vision da ted Au ~st 13 , 1 934 signed 

by E. M. J effrey 

Copy of l ega.l opinion of Curtin ~Jinso r dated July 31 , 1 934 

hich documents I think you left with me. 

9811 

I sl JGL 

J . G. Latimer 

Divisi on Counsel 
-26GAu:;ust 15, 1934 

Tv : Division Administr tor, Division 3 

FRGLi Review Officer 

SU:JJ ECT: St['.y of Article IV, section 2, of t,1e code 

for t h e LADIES' AJ. DBAG I NDUSTRY 

T:1is orde r will not be consistent with 

~1e AdministrE',tor' s forme r ction unless the r.menclment concurrently p resented is E'.:)i_) r oved. The question 

of e.pprovE'.l seems doubtful. Accord inE;ly, it is sugge st ed t :l[',t this order be wi t :ll1eld· until suc~1 question 

l1E',S been det e rmined •. 

Alvin Brown 

/ s/ AB 

9811 
- 267-

August 13 , 1934 

BEVIE.i DIVI SIOt 

Grder, TenninC".ting St:"·.y of Article 

IV, Section 2 , of the Code 

for ~1e 

LADIES -Ai~ BAG IHDUSTRY 

L<'-bor Advisory Bo r'.rd, Leg:--.1 Division <'.lT_)rove. Division 

of nese:-- rc~1 2.nc.t Plr..nn in.:, c:-. rove wi ~l suboestion. Consumers ' Ad.visory BoP.rd reyorts, but ctoes not commen t. 

Industri <'.l Advis:;ry Bc.:-·.rcl. clis<".pp r oves. 

A.drnini strr.tor' s Gr de r: Provision hc.vin_; been mr.de in 

9811 

Admini s tre.t or' s rd el~ C'..}proving code C'.s E:'. concH tion of 

E:'.:_J-;_J rOVC'.l thr..t Section 2, Article IV, () roviding r:c:-.ges 

for semi-skilled em)loyees in cert2.i n depr.rtments of not 

less thc.n 45¢ ~J er hour) be st c:>..yed until code ,:>;v.tl ori ty 

defines sc-.ti sfr.c torily to Adrnini str'"'.to r term 11 semi-skilled. 

em~loyee 11 • Co cle Au t :-:ori ty un'"'..bl e to C'.L;ree on defin ition, 

necesse.ry in orde1~ to effectur.te _:9olicies of Act 1'"' t ste.y 

be terrnin2. ted. 

Industrir.l: <lis2.pproves; no rer.son 

Resec.rc'1 r..nd Pl2.nnin.; : subt;ests no objection to 

termin.'"'.t io;.l of st2.y, :9 rovided 2. wc:-.ge differ en ti-"1 on 

t he tyl:Je of r- teri2~ u sed in mrking of l1c.nd bC".gs is 

mc:-,in t r..ined on some eC}_ui bJ. e cl.ifferen ti2.l to t '"'lce 

c:--.re of t:1e sm<:.ll t om1 m~ nuf"' ctur r p rod.ucint,; volume 

merchcnd.ise 2.t low :Prices. 

Deputy: c..nswers: t l1i q mr•.tte r not :9roperly wi t lti n 

the scope of this Order. 

E. r.;; . J effrey 

Received for Review Auc,ust 13, 1934, 10:00 Ail 

Forv1:--.rded \t7i ~l Revi ew August 1~, 103~ 6 : 15 PI.: 
- 268-

c 0 p y July 31., 1934 

r::.1A 

cG"l Division 

i.iElfO~ DUi.i 

TO : Assist.:>Jlt De~Ju ty Administrr.t or B<'-IT, Room 3016 

:?RC:i : Curtin ·nnsor, Assist['nt Counsel 

SUJ3JECT : Prop'J sec iliodi fi c:--.tion of Articl e IV, Section 2 

of tl e Code -- 1 .:-.dies :~r.ndb <. g 

You :1".ve me recomm.end;·.tion s mc.c.~.e UlJ some tL.1e <'-E;O in wh ic'1 I 

st".ted t::<:t it v1c.s doubtful 1 egc.lly v.r~: et~:e r t;.: e President could irrr_po se 

['n ['"11endmen t to cJl r.xJr 'Jv-ecl c::>cle, c;.nc1 .. ne objection s t 0 t l:e ~J ro1Josed 

E'lllendment on t:1e s r ounds of )olic; . 

You noy; r.sk fo r my o)ini ::m c.s t o \7~1et~'.er t ::e )roblem of semiskilled em)loyee C<n be t '"'lcen cr.r e of by :'.i.[·.vinG tl'! e Admini "'tr<.tor lift 

t he st ew of Se ction 2, Article IV, ~J ov cled for in t h e order ..-.pproving 

t:1e Code GD'~- by ~1r.vL1 ;; t :i1e PrG si den t sign r.n order modifying the Aclmi nistr"'.t or1 s Cr der c.:J~ vin c; sr.i d Code th"'.t t :,e word. 11 semi- skilled11 

<'.nd t~ e wo r ds 11 m ..... de of r.ny mc.t e ri ".ls ot:1e r ~.l."n i mi t P.tion le .... ther 11 s1~[' ll 

be dele ted f r om s Section . 

Article IX, Secti on l of ~1e Code p rovid8s. in i:Jnrt P.s follows: 

11 T' is CoC:e u1cl. ~- 11 t.:&.e .:Jrovisi:ons t:1e reof '"'.re ex::~ress y 

m2.de subjec t to t he rig> t of t he President, in c.c cordcnce vii t:1 t:.1e ~) 'Jv i sions of Sub- sectio<l (b) of Section 10 

of t}. e k.tion."'.l Industri c-1 Recovery Act , from time to time 

t o cnnc el or modify <'n order, <.pprov.:-.1, • . .•• . issued under 

Titl e I of t he sn i d Act rnd ~e cific lly, but without limit C'.tion, t o t h e ri gl1 t of ~1e President t o c rncel or modify 

:1i s P.ppr ov rl of th i s Cocle or <ny conditions im:po sed by him 

u:Jon h i s <'-}?p r ovo.l he re fll . 

I n my opinion , t:1o eli min<.ti on of t:1e words u.bcve referred to from 

Article IV , Section 2 i n ti.e Or cle r f<.lls wi t:1in Article IX , Section l of 

t:.e Code <nd Section lO(b ) of the Act. Le.:;<'.lly, t:1erefore, your 

p ro]'Jsed solut o~l i ·s llr ob['.bly in orde r. 

!1iy objections on bea:'.lf of t ::e Legc.l Division to t:1e ~J qJo sed 

c.rnondr.1ent on t:j.e Gr ounds of policy o.:plJl y wit:1 equn.l force, :10wever, to 

~1e new ) r opos['.l . Our lege>.l rigi1 ts ,'"'.re not so definitely estr.blished 

t:l<t ne s~1:m+d ttem~v t t c t e st t hem c.gnin st t _le ni s~ 1es of r. united 

Industry unless our r or.sons for do i n.; so <'-re s o strong c-.s to W<'.rrent 

sue .. <'-test . I em un~.bl e t o see t:l.".t t:· ey r.r e ~l< t strong in t:1 e p resent inst<'.llce . 

Curtin ~i/insor 

9811 
- 269-

Thur sd:-'.y 

ilA Se_ t emb er 6 , 1934 

Lege>~ Divi sion 

l.i E 1 ; C rt A ~ D U 1.1 

To : rG'..jor George L. Berry , Divi sion Admi n j.st re..tor 

£ron: J. G. l,£'.time r, Division Coun seJ. 

Su.bj ect : .n.p?rovc-.1 of cert£'.i n Amenc:.men ts pe rtC'.i n i ng to t he 

LADIES J:.AlillBAG I NDUSTRY CODE 

A few dc>.ys r-.go , in r esponse t o your ttemo r c..ndum 

of August 21 in ref e ren c e t o tlle ['.b ov e subj e ct mC'.tter, I trrn smi tt ed 

my o:pinion reE;C'.rdinb the 1 eg<..l C'..spec ts of ~1e l_) r o)o sed a :;:;?r ov c-l of 

c-.mendrnents to Cr-.ptr.in J3[l.ttl ey on the E'.ssunll)tion t h.:..t, C'.s Acting 

Administr:--.tor f or Divi si'Jn III, suc~1 opi n i on sh cul d b e delive r ed t o 

. 

I f C'..il ed E'. t t 1.1r.t time t o r e t urn c e rtr.i n do cu -

ments wh ich were f or w<'.rde cl t o me , w~1 ic.i 1 clocumen t s r r e ::.s f olloTis : 

Record of Ee~ri g 

Folder c on ['~ ining Or cler teru i nr.t int:; s k '.y of Artic le IV Se ction 2 

of the Code toge t :1er wi t:1 SUl)) OrtinG do cumen ts 

Copy of Executive Orde r C'..pp roving <'.fien nen s 

These docillilen t s r.r e r e turned t o you her ewith . 

/ s/ L 

J. G. ti :ne r 

Divi.si on ~e1 

j gl*mb 

9811 
- 270-

E X H I B I T M 

Digest of Hearing , . lAay 7, 1934 

9811 
·- - 271-

:Befo1·e Assistant Deputy Vlorthy and his dvisors 

The vrotestants were: 

Basis of protest : 

Miss Rose Schnei der man 

Hrs. Cunningham 

Hr. Curtis Wi nsor 

Labor Advisory 

:tesearch and Planning 

Legal 

G. R. Godfrey Co., Gardner , assachusetts 

Hudson Leather Goods Co. Inc., Nyack , Ne11 York 

Paragon No velty Bag Co . I nc . , le'VI'burg , Ne11 Yort 

Uneeda Eo vel t y Ba.e:; Co. Inc., Neubur g , Nen Yo ~ 

Ne1.-1burg Handbag Co. Inc., l enburg, Teu York 

Licht Ka:9lan Inc. , lJewbur0 , Ne11 Yo r k 

Strand Leather Goods Co. I nc . , New Yo rk 

Virginia Art Goods Co. I nc . , Lynchburg , Virginia 

Did not participat e dir ectly or indir ectly in 

establis~ ing or consenting to a code and \?e r e 

particularly harned b~r provisions: 

Sections l anQ 2 Article III 

Sections l, 3 and 6 , Articl e I 

ITage Differ ential not provi ded. 

Provisions complained of : 

Hours, Wases, Learner s and Classification. 

The argu:-aents pres ented v:rere : 

Learne rs - inability to obtain trained help . 

Wage Diffor.ential of thil·ty ce::1.ts - inability 

to pay and inubility to coMpe t e nith othe r s 

in a more advantageous position. 

Hours - need of longer hours for office staff. 

All protests disalloTied under Orders 332- 4- 5-6- 7 sic ned by Earl 1 ean 

Hoilard, e:9u , 'VI'i th eJ-c ep tion of Virg i ia rt Goods Company , L1c . 

held in abeyance . 

9811 
9811 

- 272.-

HISTORY 

of the 

CODE OF FAIR cm.1PETITION 

for the 

LADIES IAliD:BAG I NDUSTRY 

Volume II 
- 273-

E X H I B I T IINII -------

Administration Member's Reports 

9811 
- 274-

EXHIBIT N 

Dr. Earl Dean H9ward 

ational Recov~y Administration 

ashington , D., C. 

Re: Homework 

Dear Dr . Howard : 

March 30, 1934 

The mo r e I loo ~ into this question the stronger becomes my conviction that to arbitrarily do away with this practice would wo rk grave 

injustice to employe r and employee alike. 

As you are p robably aware, Codes already app roved forbid this 

practice on and afte r certain set dates. Perhaps it was a majority of 

manufacturers in the s ever al industries affected who selfishly wanted 

this rule made absolute and p revail ed in their argument . Undoubtedly 

they marshalled a great mass of suunorting evidence which warranted the 

Ad~in istration forbidding the practice . 

ly pe rsonal feeling is one of opposition to the uractice. I know 

of the evils that have and do exist. I know of the unsanitary conditions 

that so generally pr evail, and I recognize the, frightful exoloitation of 

the human factor. ot i thstanding all of these conditions, I must remember 

that the ""Oeo-ple affected, employer and em lo ree alike, ha.ve a stake in 

this form of operation, and to destroy t hat is a serious matter. ~ile 

I believe it is true that a certa in percentage of such wor~ers can be 

absorbed into factory operation, I a~ certain that a quite large percentage 

cannot , and it i s of these I am particularly concerned. Their earnings, 

pitiful and small as they have been are an important Dart of the horne 

economy, and one cannot i gnore it, for to do so would be a grave injustice, 

and ould tend to add to the great 'l'l'ant tha t already exists. 

Difficult as the matter of regulation is, and of necessity will be, 

I am ve ry certain today that dra stic regulation can be made effective, not, 

of course, 100%, or per haps approa ch that, but sufficiently to bring about 

a vast im-provement . 

It has been suggested to me that a form of licensing through a state 

agency and a paid policing through the several Code Authorities affected, 

could be brought about , and ould be of tremendous help . 

The suggestion made Drorides fo r a fairly stiff licensing fee- one 

that ould to a degr ee at l east , keep the irresponsible employer out of 

he pictur e , and on to-p of that, t hey be required to pay a sum to their 

Code utho rity sufficient to provide for the policing. The burden of 

u roof as to the cleanliness of the ho:ne wher e nrorl<: goes, and as to the rate 

of uay , ould be placed s quarely on t he shoulders of the emuloying 

manufactur er, and s or n statements from him as to complia.nc.e be required 

i t '1 an agr eef!lent that extr emel< heavy uenal ties could be summarily inflic ed fo r noncompliance , all of hich he '1"7ould agree to when he made 

a plicatio for his license . 

9811 
- 275-

After inquiring into this subj ect on both sides of the picture , 

·t is my considered opinion that homework should not be abolished and 

hat a form of regulation such as indicated above, should be r equired. 

Very truJy yours , 

0. V:. Pearson 

WP:HA 

APril 7, 1934 

Dr. "Sa.rl Dean Howard 

0. W. Pearson 

Bag Code Authority 

Organized. this Authority Tuesday night, Ap ril 3, 1934. Meeting 

ieveloped that a buyer's strike is threatened , p r obably in ew York, 

)Ver the new terms laid down in the Code . Suggested that it would be 

~ threat only, but in the meantime would be good to get in touch with 

Ghe Retail Code Authority and ~oi nt out that the strike threat is 

)ased upon the idea of infringement of the Bag Code. 

Out-of-town factories asking for apprentices . Matter to be 

Lnvestigated and rep ort made immediat ely. 

0 . W. Pear son 

)WP:MF 

3811 
- 276-

COLLECT AT NRA HEADQUARTERS AT WASHINGTON, D. C. 

POSTAL TELEGRAPH 

MAY 17, 1934 

JAMES C. WORTHY 

ROOH 4318-DEPARTMENT OF COMMERCE BUILDING 

WASHINGTON, D. C. 

I HAVE CAREFULLY EXAMINED ITEHIZED BUDGET OF THE 

LADIES HANDBAG CODE AUTHORITY IT HAS MY APPROVAL 

STOP THE HETHOD OF RAISING I:IONEY TO MEET EXPENSES 

OF ADMINISTERING CODE IS I BELIEVE SOUND AND BASED 

ON GOOD PRACTICE STOP I HAVE LOOKED INTO THE .ITEMS 

RELATING TO REMUNERATION AND FEEL THEY ARE PROPER 

ROOM 404-40 5 

9811 

0. W. PEARSON 

ADMINISTRATION MEMBER 
Dr. Earl De r-tn Hon .. rd 

- 27?-

NATI OUAL P.ECOVERY ADi.tilHS·rRATI -

I/AS3E:GTO . . , D. C. 

45 Bro[ drray 

Ne'-r York Ci t.r 

Deputy Administrator, Div. V. lJRA 

De~oa rtrnent of Commerce 3uil chng 

WC'-shing ton, D. C. 

My dec:>.r Doctor Howa rd: 

IN RE : LADIES HANDJAG COJZ AUTHORITY . ::E~rL G 

THURSDAY- HAY 10 ·------------

.1n.y 11 ' 1934 

rhe first orde r of business sche clclecl for l Dst night 1 s meeting <.s 

settlement of the ma.tter of defi n ition of se;ni- skilled worke rs. I <.rn 

sorry to SP..y that it was nocess· ry to ) OStp one this matter Rf:'ain . 

rhis was the c ondit ion that I found. 

The New York gr n:xp nre no·.1 nego tie,tin0 Tii th l n.bo r for c.. neTI aer eernent . 

Bt. sed. u:_p on pP.st e ";:pe rience , t hey a~1 e to me l r..st night , and n ointed out 

the t if this de finition 1:1ere i mmedi o.tel y settled, ::-.nd under this ne\1 

definition t he out-of-to\m s eni- skilled wo rke r s .rould be r aised, the 

Lpbor Unio n i n New York v70ul d i r.medi r-te l :r insis t unon n 1) ro-oortion~.te 

increas e be in ~ rnr..de for this rouo in the 1Je ' Yorl.: ?rea , P.hich ould 

i mrnediatel J' · . .)l <ce Ne"P. York in t he- br·d. c ompe titive ~') osition ·7i th r esuect 

to the out- of-tom1 manuf~ turers . 

I also discove red that the c ornni ttee hacl ·o een unr-blo to D-~;ree , there 

being a shC'.I"-J cU vision of opinion , divi ded on the 1Jt:· sis of 4 to 3 on 

eech i tern t Pken up for settl ement. L1 :- ddi tio::1 to thn t , Lp"'r)or itself 

turns in a thi rd r e·.; ort. I hr-ve a.;re8d to '"'ke visits t o some f~cto ri es 

during this conine ueek for the ')lll' )OSC of sceinr; fo r nyself ex, .ctly 

'17he.t is involved i n these vC~rious o· er<:•tions c ·1U. c··n )re~ent n norc intelligent 0""9 inion as to whnt is a ro·;er definition. 

I trust this t.rill meet Pi th your ayp rovol . Huch as I r ec,r et the elay , 

I E'.m c onvi nced it w~.s sound to a&e..in v ost )One it for n s:1ort tine . 

I find the financia l si tuatim: is not so hot . A re uest 'las sc·1t out 

to the Industr:-y to :oay $25. 00 each on [' ccount , to oe credi eel "'~ inst 

their LP..b el or ders. So far Industry h~d not rCS""r) Onde d. rho Code Authority c.'"'.n discount 1:ri t h the brmk e ll orcie rs for l [)be ls they receiv<.: but 

they cannot s e cure t hese orde rs until t l:.."! 1.)-i.l. ~- :ot s )t- '.lp C~nd <'~el l) l""~n 

is al)l)roved. This I believe hc .. d ·becll i;! ·.:: t>!li 1 ·to 1 for !1 Tieek or t 10 , ~ cl 

I wonder if it is possibl e to r;et so~· e i • 10 lir t~ '"'Ction. 

9811 
- 278-

A number of n eti tions ue r e -.)resented to the Code Au thority. Upon sone 

of these , flction \7:->S. tal,cen rtild I unders tood thn.t es Jecting them Hr. 

Mi ttenthal will notif:r your off ice dir e ct today. Others nere laid 

ove r for t he lJ Ur~J os e of seel:inc; furthe r L'l.foror-ttion . 

We will ha ve set UiJ durin{; this neek the Trr,.d.e Pr.:->.ctice Co ;}i)ln,ints 

c:md Lab or CoEn l A.ints Conni ttce s on<l t hese rrill g o forrrarcl for your 

a·o orovo1 just as soon ;:.s nD.:1es o.r e s elected an<l , _g reed u:•Jon. 

There is see in y n ~Je tter st£1.te of :1L1d '~Ti th respect to the trro 

group s o~.1ing i:i.1to being . This 11as def~ni:tely ~vide!lt n.t the meeti ng 

l a st night C~ .. nd I om sure this is welcone neq s to y ou. 

Meeting e.djourned about 12 : 40 .A . 

Yours very t rul;;r , 

O. "if . PE.ARSOi.J 

.ADi.IDii STRATI OH Iffii IB::::RS 

OW.P.:DAR 

9811 
- 279-

COLLECT AT lf.a.A HE.ADQ,UALTEnS .n.:r \TASHii7GT0-7, D. C. 

J AIJE S C. i10RTiir 

ROOU 4318 

POSTAL T.ELEGllAPH 

DEPARTI.IE~ T 0:":., CO_;;IERCE :i3tJILDLiG 

WASHii7GTOF , D. C. 

r:e~r 17' 1934 

UPOIT :CXAl.HlTATIO~ . L.A:BZL COST OJ? TiL LADIES H.A.iiDBAG 

CO:DE .AUJ:HORI :rY IS PROFErt .&iJ HAS l:Y APP- OV~:..L STOP 

COJ:C AUTHCRITY S!{OL"!..D ~ PE1 -. I 1T:::D TO PURCHAS:2 AliD 

ISSUE TERM STOP THE ISSUING 0:? LABELS i7ILL J3E l3ASED 

UPOH T:tfS V.AH.IOUS ?RIQE-LEfi:S or rill: LTDUSIJJ.Y .iLID JtRb 

COi iPUTEJ) UPOli Ali EQ.UAL JJ.ASI S OF APPROXIi ;A:2ELY OliE 

THirtD O:t; ONE PERCENT 

Room 404-405 

9811 

0. 'W. 1'E.ARS0~7 

.Amtii:i STR.AJ: C~ iEiiBZR 
- 280-

· NATI OITAL . RECOV:.:RY .ADi T tii SirRAri 01~ 

Mr. James C. Worthy 

Assistant De mty Ad.J1inistr[ltor 

NationC\.1 Recovery Adninistr·'t io:..1 

WC\.shincton , D. c. 

May 25, 1934 

RE: Lnd i E3 s I Hondbnp.: Code A'\1 thori ty 

De a r Hr. TI'orthy: 

Shortly 2.fte r this Code Authority st['.rted its sess~on last night, 

Notice of He~rin5 ~ith r espe ct to definition of se~ i-skilleQ ~orkers 

E'nd the u l ea fo::..· <1. chnn.::;e o:l t r1e Code .Authori ~r p er·sonnel on the ground 

that it ·is not t r u l y re:pl~ese!'l t c-.ti ve , 1;:as r er>.d. <md the fire wo:rks Tiere 

on . I thought my milline r y f:rhmds c oulc'1. fit;ht but they .don 1 t know how 

to r;o P.bout it '- s do tl e r.le!"lbeJ:::; of t he L..,di e s 1 Hcmdor•.g Codn Authority. 

So rmch bitter ness developed t'.nat I fina lly r.djourned, the meeti~g at 

ten- thirt y and. said i f the inrtus tr'J f.1el7lbers of the Authority c11recl to 

stay , I woulci bG glN'l to sit 1:1-P all nig.ht if l)ecesso,ry, and stay all 

day on Fr iday , fo r the pur:o os e of trying to a-:rrive a t an amicable settlement of the differenc es tl1; n~. exist be t ':7ee n t.he Vf1.rious fp,ctions and 

e roup s. 

This they ngr ced to c.o pnd I B.s ked thRt L~bor ond the code directors 

leave. I the r eupon stPrted the mee ting t:Thich l a sted until nearly four 

o.• clock this morning. W1en I mc.de this off en", I, of course, realized a 

numbe r of others had attempte d to do the sruJe thing, incluJing your own 

good selves, but feelin ~ thnt l)erho:o s the situe.ti'o:-t .. rnight be ·a · little 

different today ns a r 1;sul t of the vrork , little a s it has been on the 

surface , done by the rode Authority, I lit he ~r set out on, trha t shall 

I say - my e rrand of ~:.1e rc . Oh bo~r , I run a r:r e ck toc:.ny but I do see a 

little glimmerii."\t; of light and the possibility of finding a common ground 

upon hich they can all agree . . I 

The basis vf T1JY t hou{;ht is that Fl,ll p resent nssociations shall go out 

of business and that there be fo rmed one ne" a ss ociation, tho·· nar:1e of 

which is imoro.teri:u at this :)oint , and the membe rshi ~) of "hich shall be 

c: 11 )reao;l t ,e-Jbc rs of the old groups ; a nd t hat "90ssibly the ·i1embership 

of the Code Author ity shoul d consist of a number of men re·o re sen ting 

out- of- to,..m, equallin:; those re})resenting Ne1: York or sor.1e .. such :?ro'?er 

basis. 

It then d0ve l oped, and this i s rrhe r e the ~g e~ test bone of contention lies, th~t the u roDose d definiti on of sen illed ~orkers is the 

e rnel "'f the t:Thole si t~'l.tio :. . I t seems t o be ovid.e:1t that there is too 

"ide a labor cost ci.iffe renti <' l existLlt; '0e ~·i-e en Nen York c:nd out of tovm~ 

Of course , o t of town fee ls this is not so but as is usuc:U , neither side 

has any fuctr. u-yon -rrhich one c.-.n ref'.ch a r e[ls onc.ble conclusion. 

OQJJ 
- 281-

Fina lly , ?.t four this mo r nine , I sug5es ted. th[-l.t I p rocure frou 

m t of towh manufn.c turers ond tcm eqL.l.£tl nunber of 'Te 7 • or!c T'l[lnufa ctur-

~rs , say four to six in each case , or at le<,st enm.~ :, h re~Jresenting 

~a h of the major price li:1e s, a definite cost of o•Jert"'tion figure 

1hi ch, of course, I can onl0r get fron a quick surve"r "b:- a.:.1 accoun-

~ant durin~ the next fe17 da- s . It wc-.s .,u:_,c;est.ed tht"'.t. if I ;ould do 

~his, I might ask the Adninistrn.tion to )Ost~)One the hearing , set for 

Tune 16 I think. They ryere )retty nec>.rly of the ~Jinio _ that they 

~ould get a:hrnost D. one hundred pe rcent agree:::1ent on the decision that 

[ rea ched, 

I u ould like you to think this matter over D..nd since I .rill be in 

washington on Tuesd.ay afternoon , perhD.!S you D.nd I C.:'n sit donn and dislCSS it at length and see Tihat you think of it. 

In the meanwlile, I have done this much. Mittenthal is going to 

~ive me the names of the va rious r:Jc=w.J.ufacturers to \"hom I r.:1ight go , end 

[ will send a li :~lin y le tter to tl1em acquaintL them of 1:-rhat I 

w.ve in mind Dnd i ts yur pose and chief ly bes:9e!'>.kin::; their e,.rnest co-

)lJeration. 'We c an be turning over '7hatever books are necesse.ry to the 

~ost Engineers ~hom I will see . 

In the meantime, too, I hc>.ve asked .httenthal to bet in touch with 

:ts many members of the Co e .Authority as he can to see Tihethe r the Code 

~uthori ty a re El.greeabl e to pe~ in0 the necess ry expens e of this job , VThich 

[ don't think v:ri ll cost over t11o or th:cee hu...'1.dred dolla.rs , at the most . 

[f the desired results cc>.n be e.ccompl ished, certE'inly the ef:'ort is orth 

Lt. In fact it is 1orth n g reat deal more . 

Kinde s't rec;a.rds. 

9811 

Since rely yours, 

(Signed) O. TJ. PZARSOlJ 

O. TJ. PEARSOlJ 

.AD: iilii STRA:V O~ ; l.IEM:BER 

LADIES t H.A.liDB.AG CO:JE .AUTHORIT r 
- 282-

1.1El.10RAliDUM 

June 8 , 1934 

To : David Be.rr, Ass 1 t, De;mty Administra.tor 

From: o. U. Pearson, Administration lilember 

Subject: Budget - Ladies Hand Bag Code Authority 

I think you saw enuugh of this Industry this week to realize that 

e.t the moment of writinr; it ,is a pretty sick Industry and has nany difficult p robl ems facing it Tihi ch require v e ry definitely the finest type 

of brains that e.re to be :.;roc"ll;red , if one is to look for the discovery 

of the si.ck sp ots and neakne sses c t p resent existing.-

I think pe h~ps the title Planning and Prog ress Division of the 

Code Authority is not althogether a descrip tive title , nor do I think 

the 11 Contributions to Associ tio ~1s f or Code Authority work11 A.re as well 

put a s they might be . Briefl;y- , the :'Jlan t h is Code Authority has in mind 

is the securing of a on~; lete and definite :)icture of this ndustr~r so 

that froo the facts so disclosed one way be ble · to -~)rescribe the curative d9se that is necessary. 

Obviously, a ll of such work re quires, as I me11tioned a~ ove , properly 

qualified brc..ins. Hence , it was that the Code Authority after long discussion and exam inat io , s et up the Executive personne l of the Code Authority as they did. It so ha:i_Y)ens that this Executi ve j.) e r sonnel 11 set up11 

is a peculiarly ha;s>py one and , if I may srw so, almost unique , at least 

in the A.P:?nrel I ndustri e s, since the t h ree Executive he3.ds C~.re men of long 

experience in the Industr;y . 

The Executive Director in charge of Planning ~nd Research is an 

ex- rrember of the Industry n ith better' than thirty-five (35}.years of expe rience and knows the distributive yr oblens of this Industry, per haps, 

better than almost any other man in the I ndustry , in fact , he is ackno~ 

l edged to be , what one T1C1{,' term an expert in such p roblems. 

The Compliance Director is ~- manufacturer of thirty- nine years of 

expe ri ence , and unqucstionab ~r knows the r.1echanics uf nanu.facturin6 from 

A to izzard. His job is a peculiarly difficult one requlrlng a most i~ 

imate lrnowl edge of industry and its n r a ctices. He must be of the high- .. est intelligence and integrity. 

The Executive Se cretary is pe culiarly well qua lified for his posiion. ith some fifteen years of experience in this Industry he has a 

broad knoryledge of the strictly l abor side of the Industry. I t so happens that l abor p roblems involved are very acute and if one i s to preserve the integrity of the I ndustry itself, it is, vi tally important that 

he Code Authority should have the s e rvices of a man who is qualified in 

his direction. Il. :addition his e ;q;e rience as Secretary of the Bag Tr ade 

ssocia ion has given him a ripe organizing experience . 

9811 
- 283-

From my talks with many members of Industry both on the Code A11th• 

ori ty and manufacturers Tiho a:-c not o::.1 the Coc1e , i.::1clu<linL: thr, r.1 ~ t 

recalci tra..11.t members of Inclustry, all of these e xe cutives Dre r c)ortcd 

to me to be of the ~ighest inte~ri ty and the industry fP.els they Fl.re 

fortunate in obtaining the services of the s e nen. In na s sing it mey be 

in teres tins to kno11 thc-.t as a rcsul t o:f the effo:..·ts o:: thes e nen a re t 

many thousnnds of dollars have elready been collected [U"I.d ~Ja d in restitution to workers, and it is further interestil"..:_; to J.:-nou tl18t thes e 

men are so inter-ested in the ir uork they h .:-we rorl-ecl for a lmo st three 

months with but the pe.yr.:1ent to them of three \Teel~s sc-,l!OU'ies. 

Personally I feel the Industr y is to ·De contsr a.tulP.ted Ul)On heving 

this tyPe of executive )er sonnel, anti I coul:l. Pi sh tha.t t'1e S['lme condition existed in t::1e other ir,d"..lstries wi th '7hich I h;tve been associated 

these past several months. You ::.1ust e::.lso bear i:0. mincl thn.t not c~one 

have these men not been pc:dC. r'.nci ~ret have 'JeeYl. wi lling to 1;;rork, but 

that the Code .Authority has had. practically no fund.:> vvi th which to operate for travel a nd other expenses. 11

his of course, has been due to the 

fact that they dicl not 1.1ant t o start the se.le of l a."oels whi ch uould J)roduce the nece ssc..r;? revenue, m1til C011l le te 0:),)rovc- 1 of the l :1.bel s, their 

sale, and the budget was had frorJ tl c Adm~n. i~tr ti o~1e This is, I think, 

something to the credit of the Industry i ll contradistinction with cer~ 

tain other industries '1ho hc:we proceecleC_ wi th01..1.t wai till€-: fo1· E~.pprove l. 

This Authority has leane0. b['.cku<:!rds in their desire to see to it that 

the law is observed and that they themselve s do n c1t transgr esc the r ules 

and regulations set f orth by the Admin istrntion. 

I think tho breakdovm of the Budge t fl.S ol~i inally res en ted c ru1 be 

improved so that :perhaps it will shou a de creas e in the total revenue 

and expense, not perhaos a tre ne~U.ous redu ction, but none tho leGs o. 

reduction of severa l thousan·1s of dollars. 

9811 

0. U• Pearson 

.Adi:linistrk,tion liember 
-2&4-

0. 11. PEBSON 

.t~]} .1 Il TI S Pu.~J: I 0 li i iEi L3BR 

DAVID nl...RR 

DIVISI 01! FIVE, ~TI:l.A 

DEP ARTi' llilTT ? C Oi iEERCE :GUILD L ."G 

IT.ASHil GT O~ , D. C. . 

45 3?..0AJ\!AY , ~GU YORK CITY 

I Au TO HAVE ··mETIEG \li TE .A :SAG -.ULTtJr.ACTUiillRS GROUP 

MOlTDAY MORlii!JG . SToP =mLIEVE i.IAY TI:L iillLZ :ro FI~DJ SOLUTIOF PRGSBlTT PRQ:BL:CliS STOP \TILL GET I:: TOUCH '.liTH 

YOU . SOOl. AS IC:LTL:·G CO:..TCLUDES 

~ T1 . PE.A.il.SOIT 

.AD1.H TI STRAri Oli ~ :El ffi:CR 

ROOU 800 

9811 
Digby 4-2324 

Mr ~ · Dean G. Edwr.rds 

- 285-

lJATIOiiAL RGCOV2.RY 10 ·r:;IS1R.Al'IO:iT 

45 Bro<:.d c-y 

Ne':7 Yorl- City 

Deputy Adr:!inistra.tor; Div. V. ·liRA 

Department of .Com..TJe rce Building 

Washington , ]. C. 

De·ar Mr. Ed\7C~rds: 

SUB.J".GCT: LADIES '· H.AliD~AG r IDUSI'RY 

July 2 , E.l "'4 

This industrJ T:lA.d.e another ste·) forrrc:~. d in the ,)r o--;r ai'l t hat Tie l a id 

dorm for them s ome v1eeks ~· r; o ruul u·) on rrhich I have s·)ent so . ch ti:Je . 

After the Code Authority nee tiilb held. l 2..st Thur:sclay afternoon <"1. 

l, ass Meeting of the t o' fi ghtinr:: org<:ni z~ tj_ons li s held for \-he mu:aose 

of ca.rr'Jing out an agreenent e11tered into Fi t h me by R. corJJJi ttee re;J:..·esenting a group at a r:~eetin,:: he ld · n ashin ~· to~l p rior to the l ast public 

hearing. 

At this mass r:1eetin:-; it ~oas fornall._.r n.r,reed th?t the t· ·o rssociations should unfte ancl c a rry ·on o. con structive ro <~., lool::in; f ori\Tard 

toward rehC~ bil i tat ion of this Indus trv. " 

As you know the picture here is a r a ther SP.d m1e . Its volUI!le is 

do11n to about half of ,-,hP.t it nas t 10 or three ye~ rs r ::.;o n.n<.1. I an very 

certain that the p rof{ts have entirely diseppe~re~. 

The Labor Unions r.re rtlal>:in -:; a stiff fi::;ht on the Ifi"..tter of Industry 

removi ng itself frou Ner1 Yorl:: City to ot!1e r pe.rts of the oountr • They 

are at p re sent taking issue Tii tl one pC~rticular c oncern ,:-rho a ryeek or t110 

ago rer:1oved its f pc tory frOh1 this city t o L P..Ssachuset ts. So str~nt; . 

do the Unions feel that they a re mal:ing cu1 issue of i t vri th the lffi.A and 

there will be a he a ring a t #45 :Jr o .dv7ay , this mor:1ing a.t 10 A.l .• , ?t nhich 

I am to be present, respecting t his cor1 llo.int. 

The story back of t his c:-~oval is en interc stj.nt; one . Both :·r. :13arr 

and myself have te.ken the n ostition thct there is ~1ot~1in·; th['..t )r ohi oits 

the renova l of a ·fC'l.ctory f~on one ·olr.!.ce t o anothe r, lJ t r·s I underntood it 

the Union insists that the m:muff'.cturer in question t c:t ~e a long ri th him 

all of the employees workinE; in Ne .r Yorl::. The r.1::.nufr cturcr r efuses to do 

this on the following grounds. As f' r esult OI shri n}:0_~e i n his c:-• >it, 1 

and assets he could no longer o·ut£',il1 b r.nt: accorn!'Od:'l.tion .. in the city of 

ierr York. Some months r.t;o he lerrned of a vnca. t factor y in .1:1ss.,chusetts 

located in a small town thr.t hrts been closed f o·· over 2 yer,r , thr o.rL1c t':7o 

9811 
- 28Eto four hundred people out of ·-ro:cl':. This ff.c t o1·y· closed because of the 

dry r ot th~ t had set in the firm t hr,_t hr.d fornerly conclucted the business. Their business rras c ompo,rable to hrudba.gs s o thC'.t the forner employees a re more or le ss fru,1 iliar 1i th ~? ocesses of bag manufC'cture . 

l'his Ne11 York concern he.ving leo.rne cl of this fm.mcJ. thn.t the local be.nks 

there would g ive it ryhateve r cc or~ Cl.a ti ons i t needed, ;> rovided it reopened that f nc tory end took off tho r elief rolls of tha t to1m the former 

employees of tha t f Rctory. 

This Nen York m?.nufa ctur e r hcd no t c on tr2.c tual rela tions Di th the 

New York Local Uni on , contract havi ng exp ired on June 1st. The union 

and Industry he..ve not -ueen e.ble to C>.gr·ee ~:J ;.1· t erms for .the renerw~ of 

their contra cts and I susp ect thC'.t this del c:-.y in settlipg i?- ne\7 E~.greemo nt is b ased up on the ho::e thE~ t out of the Jublic hearing scheduled 

fo r July 9th one side or the ~1e r r~ ill be in Cl. n ore adva~ltD.Geous •Josition f01· mc:tki ng terms than t hey are t oday. 

The whol e situation in t h i s Inclustry is 'JacL. :Jo\7 thn t the c::.ssociations h<we joined forces, <md }Jr ovi de d the breE.J.th of life is :JUt into 

i.t , ··;> Ossibly they con begin to TIOrk to'.-rard the sol uti on of the nany probl ems f EJ.cing then . 

Here to , ci.S in Uill ine r y , the p rice s tr-1.1cture , · their b<' sis of figu.I'-

. ing costs, (I susp ect inefficient f a ctory o'?ert'.tion), the buying of orders 

r ther than selling a.re the trou'ulesone fE1.ctors. 

Here , €;t:dn I hope to be c:>.blc to g ive them the benefit of ~r o~m e:: .. 

ue rience a long those line~ thRt shmtl d look forTinrd to a better state of 

affairs" 

Yours ve1·y truly , 

/s/ O. U. P:CJUlSOlT 

O. TI'. P::..:..tillSOlf 

ADi.ILii R..t~:l' I r.u i.E; J3:ER · 

OiiP :DAR 

9811 
11 

- 2H7-

O. iJ. P:L~ 'i. OE 

.AJ) iilTI ST ... \.AT I Oli 1E: GER 

45 3 ro['.drr<'.y , li':i:U '.: OJ:ll ~ CITY 

JR.A Ha P..dqua.rte rs 

July 26 ' 1 934 

DAVID :JLID, ASSISTANT DE?UTY ADi :ETI S1'RATOR, :!:JIVI SI OE 

FIVE, ,leA 

DEPARrMElJT 0? COI.1H8RCE :BUILDL:G 

WASHiiiGT O~T , D. C. 

I RE'COl.Il IE~ ill ::CHAT :CZEI.a:>TI Cli AS OLF~P..?C:~ :O 3': P lili.AGRA?H Tl-IREE 

AD INIS TRAT ~ ORDEit #36 1JE :r::.~ItiiiliAT~ :O FO:t LADL~S 1 :E.AlillBAG 

E;DUSTRY # • •• 

O. TI'. FJ.A: J:T 

10: :IJ; IS l?_LI· ~·! ; :rEIO:LR 

(this telet;r an s ent over Admini s trc-tiol1 l'ie 1.1bers orm p ri vc>.. te 

rrire) 
Colonel Harry nerry 

Division 3 

Commerce Buil ding 

Wa shington , D. C. 

45 :Bro;'.d m.;r , li. . Y. c .. 

Sep te:.'lber 10 , 1934 

RC : LC1.cl ies andoC~.r~ Co de Authority 

My dea r Colonel Jerr y : 

I enclose hereu ith sooe sta tistics o: ork done rrith resp ect to 

comolicmce in this industry . 

Uhen one consi de r s the disC'.b ility , due to l nck of finances , under 

\Vhi ch thi s Code Authority suff ered d.ur:j:ng the first t··ro or t h ree no:nths 

of i ts life , one cp.nnot hel"cJ but be a stounded a t t he ru:10ui1t of ground 

cove:ced by the Coc1e Authori ~r Direc t ors. 

U-J t o Jul~r 1, they h,,.,,d no investigR.tOl'S ; eET:)loyi ng their first 

ma..n on July 1, the seco:J,o. August 20 ; ancl. the t h ird. , .August 27. I t hinl:: 

you ?.ill go a. low; •my oef'o r e you find another c ode euthori t y that has 

wo rked as consci entiously , m1d t hat hc:ts nc com;JlisheC. n.s much r.s have 

those s ame t \JO gentlenen. P:ease note·~ th~ a~e h ad in e:-;ccess of ten 

thousand dollars :_)a.id i n restit ution. 

I undorste .. nd you 1ere in tonn l nst week , and I am sorry I did not 

see you. 

HB 

EJ.-iC . 

9811 

Ui th 1~ in d eGarc.~ , I am , 

inc rel~r ~· ours , 

O. H. P::::.ARSOJ.i 

Admi ni s t r c,.ti on 1 ieobe r 
Colonel Harry 3er~J 

Divisional Administro..tor 

Commer~e Building 

ITashing ton , D. C. 

- 289-

45 Broc:.dmw , lT. Y. c. 

, .. 

Se·--tenber 28 , lS34 

RE: Lr<lte s 1 . ~Ic:md.1J:>~- · Code Authority 

,1y dea r Colonel B~rry : 

. This Code Authority me t l ast ni,_,h t, , .nd I ~w i t ed. Sp icD~ De·Juty, 

Doctor Schae ffer , Ylho , n.:3 you ~1 rob8.b y l::nory , i s i n charGe of c:.dJ'llnistra tion wor k in N-en York , . t o be· 1Jl'esent. 

The meetinc; 17f1.S a little 1 ss b oi s t erous th[).:.'l u sual , ~nd it :c:t'> 

inte r esting to n'Ote that , not rrithst.'"':• 1.di ng the {:e:;ler.:'1 stril::e situ.-

ation, which is so seriously cifecti.i1s ovc r -;ronc , 0 00d SY).i,ri ts ')re ~. iled . 

In ··J rivC'.te co:1v e r satioi.1s ·.r i th o:1c or t···o .nc::..."'lufe.cturers before the 

meeting, I '7f\S inf orr.1e d that t he s t ri kc i s :Juch nore serious t l: CG'l 1J'Jrhaps I thought , and. th['.t :i,t is doub tful , i f it l a3ts e..no thc r --,eeJ:, i f 

many of the nanuf [).cture r s o.:-.:n sto.:rt l the 1!:/' f . The ConrJtLn.ist e l e·nent is 

definitely i n the saddl e a;.1cl I <U'1 ..,i'rc:dcl that i f :wnuf0.c turors hnve to 

give in tc the Co;.munis t deDFonds , you Tiill !1£'.ve t ho S['Ile si tu<•.tion d.evclou 

here as is the c nso in t he ":(ur Lo.n1Lfo.cturL1G I ndustr7 . 

It is ..;e21ero.lly be lieved t hnt the r nnk nnC. file of ryorl~ers <l i O ju.:. t 

as anxious to g o bt=1.ck to rror k o.s are th'3 rr1.:'-11uf, .cturers to hov'J t ;. er.1. I 

rras also informe d tha t one snal l nD.:.1ufC'ct-...1.:- e r hcc'c ".l re· . l:r s i ::;ned the ner:r 

~.g em nt . 

I further len.rned, rmd durinL; the c o rse or the mcctin crn0 rl~s 

e..bout it 'Je r e mccuie pen ~ · t h8t t here 11ill IJe l.-;_efini te iJigrl' tion oi industry from Ne'.7 York , and. that it is thr; [''0nerc'J. fee l in~ t~1rt L t l at , 

r-nd only tht=1.t , 1 i es snl vn tion. I "C s to1 c'i. thl'.t c. 1 Ur.lbl3 r of unnttf. .ctur er 

have been scouting e.rou.ncl durii1[; t h is lX' s t ,eo}:: lookin·; for l oc<'ti ons • 

From the point of vie'."i of or t:;A.::li zec1 l ['hOl" , this , of course , ill 'be clerth , 

because of the obvious' i mp ossib ili t :r of hol d.in _, t~le ind.ustry n i thi 1 the 

r anks of l abor orgr'ni zt=1.t i on. ':Tnethe r the ino.u::.tr .r Ci' jl 8 t:- .. 1cl t he co D t of 

~Gvin ,is of course , em open questim1. Ho·,7ever , I t!1i:1!: Cl N<1-iJCr "' oi Co.rI!lerce c:..nd othe r simil a r ·oodi es in the S!'1P1le r c e:1tors ·:ill do evc ... ythi lu 

they can to he l ··J finance , uch <'. move . 

The ee.rly nart of t!'le me e t in;;; '7P.S •d ven t o ti.1c rer :in · of i) 1s 

petitions c:>.sJ>:inG for le rne , op·n·e ::1 ti ce 3 , over ti i~e , P .. "ld 3" forth. i :os t 

of these, in f [).ct I hin]~ a ll of the!!l , '-rere r ejected on t e r om c'..s thF' t 

the position te.ken by the 1Je ti tioncn s , .. ;"l.S Ul1SOlmd. These ill , of co'lrrse , 

go forwr.rd to y ou fron t he Code Au t ho ri r Orficl3 r s. 

9811 
- 290-

here Tias plco b r ought ' t o' th n,t t ention of t he Code Authority 

your request for ir.u:wdi 2.te f'.lJ~) OvC'. l of £'.11 or. en ··.1ent to the c ode, changin.; the TIC~t;e sc['le r>.:..1d del e t ing t -r:o troubl e s one !:)ar ac;r <"1:Jhs r el a ting 

to seni- skilled definitions. 

I h£'d g tele)hone ca l l ~.te yesterd.~7 , .f t er n oon f r o!"J i!i ss 

Schneider nn.nn , Tiho n~de an e·J)OL1t mcn t Ti ith De f or t h is no r ning. The 

::>U ose or l e r nee ti·'l£. -.7i t h ne TI£'.S to discuss , or r~ th 1 t o i r.rp r ess 

~:>on he Code Aut ho r ity t hrough me , the i nsistence of the Le.bor Advis or y 

BOC' r d thc.t irn::~ed r'te c.cti on must oe t a ken by the Code Au thority on the 

mEl tter of "'c r;es , or t hat Boc.r d uould i nne di El.tcly petition y ou to discontinue tl e str.-r, <"~d ...,.ls o t hEl.t y ou Tiri t e t he defini t i on of semi-skilled

I thought i t •)oli r ~e cfor: , t o i c::uedia t e l y phone the Code Dire ctor 

e.n arr'lnge for f:l. S!:)e ciel r.1eeti ilb of he~ Code Au t h ori , to be ~l d 

not l C'l.tc r thc:n i~onci.ay n oon , for t h ew to fornally ,...,_cce:? t or rej e ct your 

p r oposals , o-nd., i n t he c<.se of ~ion ~ to st;-- te t he ir re[1.sons for 

h olB.in"· it over . · <.> 

ile I r eoli.ze t h[.t t he i niu stry rw s been rau ch £'.t f ault in t he ir 

illy d~.ll ins o·1 t h i s en t i r e suo j e ct , I f e e l , rr~/se ,- t h a t a t t h is 

JOint , bE::r> r in.:;_ i :l qlnd the Cof'l :un:.s t t n re e t , i 't -r:ou l d o e unwise to p r ess 

t oo l1nrd fo r (). f inal de c isi on U·JOI: t h is. .Although i t i s denied by the 

Cotl.e 1.ir e c tor , I :>P.l of t he de f 1ni t e i ii!!J r ession hC~. t 1!:;:-. SteL1, the Labor 

:'e)r e':;entc t i ve , :)resent l D.s t :1ight , C'l.g r e e d r:ith t h i s e~)O nt . Hiss 

Schneide r nrum .;ill che c l::: 0:1 t h is E1.t n .Jeeting she e x_pe cts t o ha ~ wi tr~ 

h i n l cte r t:1is r>-"'te rnoon. 

The r est of the nee ti:nc; 'I&S inte r esti!1g , aoneuhat amusinr;. C~.n d p eacea"'u l e , and •-rc 1 i na.ll:' a d journecl a t 10 :15 p . iJ• 

In n convc :r:sat ion I h< .. d :rest e rdn y ·•i th Cap t <1 i n Brickl ey , he inforned 

me that i t '7C'S his fee l ii'\r; I shoul cl co:.1e to iJe.shing ton e~d ueek , and l,e 

ould see you tod,~r rtb::>ut u irinc; ne t he nec .r r orde r. Perhn.-·JS ~r u Tiil 

be t;ood en01.1[;.;h to r eni nd. hil of t l is. · 

HB 

9811 

inc re r ~r ours , 

O. U. P:C.!i.RSr1! 

Afunini strc-.tion l~ r.1be r 
olonel Harry S. Berry 

e·.;mty Admini s'tra tor 

ivision Three 

Commerce Bhilding 

rashington , D. C. 

My dec-.r Col one l Berry: 

- 291-

45 Broe.dney , l'J. Y • c. 

Octo~ r 26 , 1 934 

RE: Ladi e s 1 Hr.l1docr~ Code A1.1thori ty 

The meeting of this Code Authori ty l c:-.st nit:;ht nas sone...-rho.t tunu~t

ous , but I fe lt, by the tir:1e t he lon ~ so ss ion y;as ove r, that the nenbcrs 

'170uld be able to re Et.ch an -~ eeMent '7i th t he Adni!listr---.tirm .-,i th r es•Je ct 

to the matters in dis~ute fo r so lo~ · 

I was pc-.rticularly r l acl the.t 1.:1·. Ore '7r s r esent , bec r,_use , <'l t!.1ough 

they d],d not for the r.1onent t>.cce-Jt t h9 ···ro:;osals mpde by hiJ.1 , he , s·)et:'king 1i7i th the voice of r:ruthori't:.-· , convinced ther.1 , I ::un ccr:t<'in , of· the 

need of irunedi ate settle~:1ent . 

The me.tters :r eL~.t r: t o ~.7~'.0e s r :1d hour s c:>nd the definition of se:·1iskilled were referred to n co::111i t t ee 0~1 t.'hi ch I '1.7 ~. s ;:-;skocl to sit e.s c. 

member. This committee t'Till be cnlle<l to:::_;ether ' F the Code Di r e c tor next 

Uond.a.y . I ·suggested th2.t , be c.Juse of the im··Jorta nce of these o.tters, the 

Code Authority be re ·' G.y to rocoi vc t:1e con ·Ji ttee t s r e:)ort next Thur sda~r 

niL;ht, r <'.ther than wait for the re ;_,\Uf r neeti n 0 , nhich is not due u:1til tno 

weeks fron last niP·ht. They fii1cll:r c•.gr eed to l c:'ve the c, .. llinc of the 

meeting i n m~r h<mds. 

Mr. Ore seemed. to have fcl t t h, .. t , ~?er:l:-' , he had too rmch to S D;J" 

on the p roposels of the Adi'1inistr 8.ti on , out I c .:-n SSl.lTe 0U 7hF1.t IV(,.., 

said we.s necessar~r to i 1presc the Code A:l t h ori ty u i th the i uea th, t they 

c an no longer dally over this subject. I believe his st[l tenents h0d. r 

salutary effect. I took occr sion 8.t the end o:.c' t :ne Lwe tint.:: t o p oL t out 

their folly in consistently a.nd pcrsistentlf )OS t lOn in:..._: the evil cl['.f until 

the ctir1 distant future , nnd t hc.t I Pas c <mce r nccl over their l a ck of ; e rform<mce wi th es~Je ct to this i .1port£"..n t ne..tt.er, e.nd. it ':rns be:'; inlin ~ to 

be evident the.y hadn ' t the c ourr.ce to s0-: <? re r f ..., ce the issue . 

We aJ_ so took up the matter of <'1 t e r n·>.t c s , Iir . Oro · lO i nti:lt-, out 

that they r.r e not _Je r :.li tte C. . S:he outcoqe '7 ' '.'J t w ir rC1'l i::1dL1 Lle thC".t , 

in the her'.ring l c.S t s·!.l.T'JI!le r, t he s e t- U}1 of the ne-- Co,,e Authori ty ' ·r s 

p l aced squc-.rely in my h<mcls. I nro1 ,~o ing to hc..ve :o mee ting ~r i th t l e 

Board of Directors of the ~~jor ~ss ci ti on ne=t ,eili1es c1~ ni~ht which , 

9811 
- 292-

in turn , 11ill , I think, be foll oned. b;r 2..11 i nc'ustr y meeting , and I ho·,) e 

fro, t_ \1.t n :·mch better f r ame of mind ~Ji ll cooe int o b eL.1g ::md tho.t I 

shall be eblc to send you ~.v nor'!ine?.tiol s for tho t h r ee c..ddi tion(),l ne:lbers c;1 nd , perha-ps , ['.S rr.1endnen t t'o t'he Coc.;.e t enl C" r [:;in{; t he body t SO t ho.t 

it •1ill be TJore truly reurescntr t i ve . 

Of course , ""Te ~:mst nll ap orecirtc the str e 1uous ti me·.~the nd.u.s ~r-ha 

been havi nt;, .0.nd thnt m'-ny of the troubl e s , under :rh i ch they h a.ve been 

l nboring , heve b een t he result of tl e i r o m folJ.:r , r c:.the r t h <m Emy sins 

of omissio:1 or cor!lnission on the ~)n.r t of t he Adni:1istr2.tio;.1e :i~n o:ring 

the.-1 e s I do , I feel goner[l r cnc ouro.ged. 

Ve r y tru l y vr ours , 

/s/ O. . ~Jill O~ 

O. rt. :2~301T 

Adj1i n is t r :-•.t i on ; ;er:ibe r 

P . S. llill you be c;ood enou;;h t o remL1C.. iir. Ore t h<'.t he is g oing , 11 

9811 

i t is ·)ossi bl e , to send r.1e , f r O!l t h e :ct.e s e['..rch D.iJ.d Planning Di v isi on , the co·'ls ol i dn.ted figu res r e l a tinG to thi s industry . Thanks. 
Colonel Harry S, 13e rr;)r 

De uty Administr2tor 

CorrrJerce Building 

Washington , D. C. 

- 293- . 

lTATIOliAL RECOVR:. .. Y Jill ii iiS P-.' riO: 

4.5:Sroa<l'.'ay , ~~ -- . 

1 OVGP.bo r l, l S34 

IG: Lc>dies 1 H['_ndbq£ Code At.: t ho ri t7 

w dear Colonel Berry : 

The CorJ,littee 2-) -• )0inted at ti.1c Code Au thorit- neetin:; of l ast 

week, r:hich i s to make a r oc omncnda.ti on t o the Cod.e Au t hority r esne cting t he. hour and rra.:;e s ~-, rovi sic:n , :.1e t and GC't for f our hours yes t erday and. decided they uished to talL:: i t ov er rri th the entire L1dustrf, 

uhich ':la-s to meet a t oi :::l t o ' clock l·>s t !!i_,ht. 

At the Code Authorit~r ;- Jeeti~; , i t \7['S cl .. etc nine'~ in fe.ct , a 

very strong rrish mts e;~)r es sed t hr:>.t I sl:m: d be u r osont. Ho :e-.F:r , 

e.t the Cor:1mi ttee ruee ti nt:; ye<~te d.. , t r,c r .. : s~Vem d t o ~)e a fe e ling tl 2.t 

industry •;rou~.d tal~:: more freely if nci thor the CoJe Directors nor r.1yself ~e re- resent . Hence , I di d not ~o . ~hey d i d , ho~eve r, invite 

the Counsel of the Associ Pti on in the p erson of a ·.-r. Schl essinger. 

I. am told this morni ng , C() 11f ·~ en. tia11 : ' th~t ·:r. Schlcssinccr 

made a wholely destructive speech , t e ll..L1c the indust:-..7 that the lill.A 

qas unconsti tutionnl rmd thn.t no c oC.c C':a.t 1ori t; Ccu1 levy Cln~ p.,sess;11ent::; 

or collect any other 10n e~rs f r o·1 i nd:u.:-trv . The re sult o::· c>ll this '7l1S 

a definite e:x:pr c "sion of feelinr· t Ls.t he~r • ouJ. o. no t t:-.co r::ny C'.ctio:1 ,-i th 

res-ne ct to ho~rs £mel wo"~ld. not ~~g eo t o :::.;ythin, _ i n e::::coss of the :yJ r e- 1 

sent minimum wa.:;e . 

you, 

to a 

I ~m keenly disc? ""~ o'int ec ·:, :oout. t h is, bec c>use 1~ st week , C'S I Tirote 

I had ho-oed a.nd believed cool hc0.cls uo lld -o r ovril pna -:~e could c omo ... 

satisfactory settlenent . 

I p r esune the Code Authority .:il l et together ve ry sl ortl;l, r.nd 

take formal a ction in tho !llf'..tte r, of 7hic:-., of c ourse , ·rou .,il l be dlly 

advised. 

V e ~ t rul 7 ;y- ;urn , 

/ s/ o. IT. P:~Ju SOli 

0. IT. :~.A.. .. S" : 

AfunL1istr t io IIcrJbc-r 

HB 

9811 
J r . Schaeffe r 

45 Bro0.d':ray 

Nen York City 

- 294-

Dec enbe r 5, 1934 

RE : Ladi es 1 H.1.nclbr,g Cod8 Authority 

ileeti ~ to be he l d Thurcod[q ni~ht 

c.t 6:30 , Dece:·1bc r 6 , <·.t the 

~ro l ;icAlp in 

De~r Dr. Schaeffe r : 

In vie,· o: rrtr confinement to bed , I ':Iunder if y ou y·ill be g ood 

enouc;h to hcwe sor.1e one c..1ttend. to t his Code Authori t ./ r:1ee ting in my 

pla<;:e • 

There i s one subject thc.t 7.rus t be brought up .'='.t t h is neetine. 

For some monthn pest , the sa l csnen of this i ndustr y hC'.ve been tr:rins 

to persuade the m<mufacturers t o me e t the;-1 f or the :our:0ose of discussing the mntter of t heir c ommi ssions ~H:t drnc-ring c.ccounts. Outside of one brief meeting of n sm0ll co:-:c-1 i ttee sane COllsi derable time 

aco , nothi ng ho.s been done. A de~Jutati on of these s a l esmen ':"!['l.i ted 

uuon me on ilond.ey aftern oon of this tree lc 8.-lld I agreed to bring the 

s~bject before the Code Authority at its nee ting Thurs c.1.c.y nit:,h t. 

I take this r;round. It i s fo r t he best inte re sts of the industry to ';"Jee t these [:entlenen , C'nd if they c r-.nnot a ccede to re quests 

made , say s o ourt cousl r nnCi. D.in y and. i ve the r eC'.sons therefor. 

It does no t moJ;::e fo::c good feel inc C'..:1d. , therefore , cannot be of help 

to the indu;.; tr:r t o h.~ ve nn:·· of its er·nl oyees feel disg runtled. So!1etimcs sore spots CEm be ironed out by hc.vin,-:; :'l 2in, hone ~r t nlks Tii th 

the 1Jc?.rties P:".J. c c ted, '-.ri t hout, therefore , [) Ccedi::lg to their der,1['nds. 

If I _1rc1.. b een p r esent C\t the meet i nb tonor rou , I nr'.s c;oing to 

talk to the Code Authority al ong t his line. ur. IIittenthal, the Code 

Dire ctor, i s fullJr fa;niliar tri th tho situa t i on. 

\Thether the Code Au t hority or the inuustry z:-.c;:ce es tha t these 

men Fl.re entitled to co··1sider tion or n ot, [).t l e.--.c t the~r nust C1.£ ree 

they ere e>lt i tled to the courte sy o.L a _) rO _Je r hee.r i ng [-l.nd di S::::JOSi ti on. 

At teched her e to 1Jl casc fincl l etter r e c eived fr0n i Ir. I ~it tenthal 

today, enclosing Pl an for Control of Hone, -; or k to b e subni ttec1 at the 

meeting to 10rro':? for the np OV8~ of the Code Authori ~r · 

HB 

E1TC 2 

9811 

Ve r y truly jrours , 

O. IT. :.A.:r'SO~i 

Ad.Dinistrf' t io:r! !!ember 

pe r 
Ir . Le i gh E. Or e 

- .:.95-

li.A~I ~ ·-'1.1 ::ccov:wr; .n.J: r s:;;:;_ 1:: )!: 

45 Br ot d.,.,::,,y , J.Y. c. 

Ass is trnt DelJU t _r Ad.n i n i str a t or 

Conmerc e Jui lding 

UeshinE, t o : , D. C. 

RE : Lo.di e s 1 - rn dbc.g CoC..e .l.mthori ~r 

Dear Mr. Ore : 

I trans 1n i t here : i t h <'Ucli t ed ::o· ol~ t of t his CoC..e .8.uth ori t y f or 

t he mont h of October , 1934 . As us1·.~1 , tl is is ut u o ii1 v .:;r y c O.Tllete 

forrJ. 

The r e mcy ~)e sone quest.l 0:1 i ·-;. t he !Jinc1 of e i tlwr : l.::. sc ..~. or 

Planni ng <. nci Res e a:tch .. s t o the si "' e of t he r· l o :. <le osi t 2.nd on 

hand. I just ryr·nt to re··1i nd yo,,_ ·~ c t nc::.r r·1·c Cl"_) 'l' hi n t: e sl C'. : 

:~ eri od c.ncl , i r: v i e .' of t hr-.t , t!1is :->.;:J.o,mt i3 ~ ~1 ,_,_, · l.Clr :c . 

xh it Cis no t quite cl c< r :,o r.1e . 

·co o?'l t h i s fJO om t he Code :Ji r e ctor C'.l1lL r;:1cn 

I r1a s e o.:i nc I"Llrthe r li,..ht 

I ob t <.L1 it, -rill r e,Jort to 

It is int e r e s tin}..;; t o no t e , I SD:no s e :->.s c. r e3'J.l t ~ t .1e atr iko 

t h is SUllliJe r , the ch .:-i1[;8 S 1rh i ch ~1 e t ; }:e 1 ·')1 :- cc t 1 l oc 2 ti on of f c. .ct')ries. i n t he 4 , 21 2 cL .. s sifi e d. e:r l o...,.ees '::Or ~-il :; ou t si de of Te··· for l:, a s 

f1t;ainst 1 , 8 64 i n Non Yor \:; 

I feel that t he o:. d. i :..o ~ .s i · .., t~li s i::.·l.us tr;::- · [":·e i~ n r ovL, ; , ·a< .:.1·..1-

fe c ture rs 1 1:1or o.l e 11c:.s i ·1 )r oved. , t"..::C t ur t t ! :i.~e i s · 0ettc :~ .1e.1 t r l r ·Jp r oach to t he i r ·)rob l e r.:.s . 

I hac. an i n t ere s t ii."lb s cs;;::..o.: n i th -:he Code J 2.l'C c t r:.; .~;1u ·~ :i.~csen

t a tive s oi ~1 e I'r o.v e l i n-:; e::>, en ' ... :.; ci o. 1 1 · st j?ri clrq. Thi s --;ill 

be folloryec by 01-:. e rri th ffi er '~ of t h a · :.: .. 1u.f2.c t u::·e r ..., AGs ocir tio:1 tociay , 

v11 d I h o)e , out o " it, n ill cone r- .;r e<: t er '.7ill i nt;ne...,s on t ho i)f'l.:i.'t o: 

manuf a cturers t o c onsicle r t :1c rel ~ ti o :shi·) ·oe ee l t hcnso l vcs < .n~~ s:-l e sI!len i n.:-.. s ome h r\t G. if:~ -.. t li -_;h t ~ .. r:. h:-s ·.)een t he c :->e hitherto. Of 

t h i I Tiill r e·0ort l c.t e r . Ui t ll :-;: i no. r e ; :i.':Ls . 

HB 

9811 

Si11 c cre l :· yo - "' ·> , 

o. iV. ..::. -- · 

C.: ;i nistrt'.tio·,: e;J~Je 
1. r. Leigh E. Ore 

DelJuty Administro.tor 

Textile Division 

Conoe rce Building 

ITashi.ngton , D. C. 

- 296-

NATI OUAL RECOV..::RY ADi.I I1TI STR1 TI OU 

45 ~ rOf·.d\!<'7 , l~ e 

January 4 , 1936 

BE: La'l.ios' Hand'bn.g Code Authority 

L1cetinr;, Thu n:;dny , J nnuf'.r;r 3, 1935 

Dear Ur. Ore: 

The most peaceful :illd co:a s true ti ve me e tint; I ha ve eve1· had u i th 

t his industrJ'• The Code Authority covered n lot of ground and at all 

times c:-..p}Jroachecl the matte r s :'resented for the ir co11S iderati on i n a 

thoughtful rnanne r. The r.1eetinG a<ljournecl 0.t 11 : 00 P • n . 

The outs ton ding me.t t er 1-7r.s the r e ce j_ vi nx of D. de )U t n tion fron 

the Imitation Le[\,the r Nove l ties Gr 9u:~J , loo1dne tonf'.:c G. their c oming 

under t he jurisdictioi: of this Code Authority. This de:Jutation presented five or r; ix p oints they fe lt shoul d 11e co:·u;idered by the Ladies I 

Handbag Code Authority . First, '7fl.S e~Jr osc nt ~' Ol:.. ; the second , discount 

t u o pe r cent c;,s a~ainst three; third. , cost fo r nulc.; fourth , WF1.ge scnle; 

fifth , method of voting on ..:) roblems , el[1. ti n~ to their f;roups. 

The Code Authority fir::;t consi de ~_ _ the ·_J rL1.ci:Jle of bringing 

t his gr oup under their jurisd.ict i on . Ti.1is \:n.s un<mi r:1ousl y agreed to ~-s 

beinG sound. 

Renr esent ation- Assurr:int: <.1n exC~.r.'line tion clisolosed their v ol ume 

is someTihe re betueen four F'- 1cl f ive J':l illion dolla:Ls it '7D.S 1.manimously 

agr eed the nen broup should hpve two r e)resent[l.ti ves on the Code Authori ty , rovide _ they uere addi tion()1 r:1embers to the number -o rovided 

under the "'l eson t Code . 

Discount - This '.7a.s unanir.10usly agr e ed to without argur.1ent. In 

other ;ya r ds, this group should be ~ e rni t t ed. to coj1 tinue on a t;.ro per 

cent bo.sis. 

Cost Formula - Since there is no cost fori:lula -.,rovided u..'1der the 

Ladies 1 HC1ndbe.6 Code and they a r e _lOTI forrrlUlntinc, s~ch a :? t=~n , it vms 

felt that it rr['s Ulmecessar ? to d.o ~r hiq; ['.b ou t this, 

~ace Scale - The unanimous inion of the Code Author ity ~as that 

he Tiage scale obta i ning under the -)resent Code sho·uld be the 118-t.<se 

scale for t~is Gr oup . 

9811 
- 297-

Voting - It ':7as un311imously ae;reed th0. . t he su._,~~ estion l!lrdc by the 

deput.".tion, wi th res ect to u t\"ro-third. vote be in£ r equir ed on mo.tt e rs 

strictly relD.tint; to their branch \i;J.S not Dr nctic[J. nnd that the majority 

vote, as provided unde r the ne'' a:n rove d. :B;;r-Lc:ms , b e follo\7ed. 

For1:1al resolutions ,-,ere ST> read. on the rninut en -,ith r esrJe ct to e t'.ch 

item mentioned above . 

It was agreeed that the Cod.-e Directors should consi tute a cor.1f!li ttee 

to iron out any p os'Bible dLffe:rence s thn t mi ght cone up so that the matter can be ~) res nted for your a:rrDrovul a t t he ::_ouo lic he n ring next Uednesday. 

A.u-·)r entice RequestS' - These still, con tinue · to cone up f'lld ti1e 

Code Authority re-affirmed the -=.)osition he r e t ofore t al:en by it, Tihich 

is one of ap·~) osi tion. 

Des i .;::n Pira cy - The ·;lan as 7? !'esen te d ~7E'. S unc:ninously ;p:o rovcd. 

Cost Formula - Since t~ 0 COI!'_l!litteel s r e:) ort. on t h is subject had only 

been distributed to the ner:1ber ~. of the Cod.e Authority tuo or three hours 

before the meeting , it v:as de cided to l a;r it over until the ne:-t neeting, 

on the distinct understan din~; that each :1er1·be r rroulcL co.reful ly study 

the re-port so that the <iiscussion nt the lo.ter JTleD t inr-: ·-;oul c1 be to the 

~oint and constructive • 

Salesmen- The Co de Director, r e·prese;1tL1g the co·mi ttee of uhi ch 

I was a r.oenber , ··)r es ent ed his r eport, but I tooL eJ~ )tio n to a l a t e r 

develo:pment of 11hi ch I had ~ot be e:'J. fully o.cqua iLted. At a neetinu I 

had r!i th the Sal e smen t s Conr:li ttee , I u r o;·:1 is ecl n de mt o:n of s 0.l esmen 

ryould be r eceived by manufC'Ic tur e rs , Cl.t uh:. ch tir1e t hey shoulcl ~e t <'.. definite yes or no E'.nsr:e r . I r.1c>.de this )r 0:1is e feelin,; it 17:-'.S t :ne p olitic 

and ope r thing to do <mel_ fo1· the best i 11 t e::test s both of manufa cture rs and 

SE'..lesmen, belie-ving th<".t a f a ce- to- f2c e r1ee tin-G i s c ood and~ even if the 

ansTie r had to be no , the othe r side nill not fee l they ho..ve been slighted. 

After my meeting n i th the s.ql esmen , I h el d a s e .;sio,\ ri th tho Presi den t 

of the Associ a tion, nho 1Nas t hen leC'.vinc fo r C.:-tl iforni··.. He ac;r eecl '"lith 

my opinion in the matter 2.nd l eft the <'-J! .; ointment of the c oru'1i ttee of 

manuf a cturers in the hands of Ur. · .. rittenthol . i:Ir. i[ittenthal consulted 

with these manuf!"1.ctu.rers and. they evidently did not feel it Tias ecess<.~. ry 

to sit doTin with thes e salesnen. an<i ~s ke d. I.'r. ih ttenthr . l to convey to 

the Se.lesmen t heir refusal o.:.' the der 1a:1c.~.s El?.de . It rras to t h is I tool: 

excepti on. After all, sale snen 2.re an i r.'l}_J Ort":nt pr.r t of r ny ne.milF".ct urer's business a nd it fus so foolish to build rP-sent,,ent n::.1d a"YJ.ta.~o

isms. I think the Code Authority in the me in ae;r eed ~~i t h my strictures 

upon this nction, or r a ther ·~. ck of cti o , CJ.nd feel that ni thin the next 

week or so there will be s m1e sort of c '-'e t- tor,ether even if it doe s 

result in denial. 

New Members on the Co de Authority - It ~us understood end agr ee d to 

at the public heP.rint:;s thr.t I shm.lid no.Pe three extr ::-. men to this body. 

This has never b een d.onc nnC: I b e lieve should be settled. I will discuss this '.7i th you next wcwk. 

9811 
- 298-

I unde rs tf1nd the s t n te of the indus t r :r hr.s ifl!9 r oved to a considerc.ble degree . There c..re still r umblinr-;s o; l e.bo r t r oubl e s , but t h e 

sepson wr·s one of th8 best hPrl for scvcrcL :re c; r s pr-.st , The ··Jrice 

fl oo r lifted, slightly r.t leC"s t , [l.nd tl1e in 1.i tio~1s f or the <=';:9~J rOC~. ch

int; seoson are 8.11 g ood. ..ls is usuol , the Cod_e Dire c tors a r e on their 

toe s , "'1'.7DJ'S strivino to do nore thc:u: t he ir y'..r t he l p i -'lt-; t h e inctus try . 

I think more than a.ny c ode ciire c tors I l:o.1o" of 1 the~r ray moro e.ttention 

to nhRt is ha:!Jening in the r e t e.il stores , bo t h i n t he ir o.dv e rtising 

e.nd in the COi.lduct of the lrdies' hr..ndb<:'.g de·pc::tr t ments. They c:..re raore 

a l .ive to sone of the foll i es c of1_!:li tted. by n~'1uf o.. cturers a nd b_r r eta il 

me r chru1ts and a re qui ck to ex_zJr ess o.p)r ecie.tion of \That manuf a cture r 

or r etail er r!la;y be doing thC':l.t is he l pful or c onstructive - all of 

wh ich tends tOTIL' rd strengthenin~ of good fee ling , underst[1.nd i ng and 

ap:Dreciat i on of the Code Authori t :- 1 s t70r k . I .o::-11 told_ t h e big manuf ncturers, Tiho b i tterly f ought · the cho._r1ge in the discount structure , 

because of t heir fear of f ri ction betneen thensel ve s on d i r::()Ortant 

ret0il mercbants • no'\7 find the neP dis c ount i s a ccep t abl e a.nd ceased 

grumbling - Dll of '\7hi ch spells consi dere.bl e sums of money i n t he 

coffers of the manufE~. ur ers . 

I shall be de l ighted to see you i ::1 'fl2.sh i ngt on next rreel;:. I expe ct to nr rive I.onday nor ning . Uith k i n dest reg .. rds . 

Since r el - yours , 

/ s/ O. Uo :bA._~SON 

o. IT, p:;::;_:ffisO= i 

.fuJi ni s trr.1.t i on i !embe r 

9811 
- 299-

45 ]rOl'.dDr'_y , li. Y. C. 

. · J a nuary 17, 1935 

Wr. Leigh H. Ore .. Assistant Deputy Ailiuinistra tor 

.A.p~)A.rel Section 

Commerce Building 

Uashington , D. C. 

Deq.r. VIr. Ore: 

~ . 

RE: Addi tiono.l . :cr1be r to the L<.1..dies 1 

cl~)ar.: Co de Autho'ri ty 

'· 

0 , 

There is included in the order a~J") rOVi ll'' this Co cle t he follo,:r- , ·- -. b 

.ing: 

. ~( ' 

11 Th8.t , in [).deli tion to other ner:ibers of the· Coo.e Auth ... 

ori ty., there may be ap·)o i;:1 ted by the Acl;1i11i s tr< tor or ~ - -

Elected by such methoci o.s he n2.y ~? es cribe:, i n· his 

discretion, not more. thDJl three "'.ddi tiono.l · menbers 

-with voting l)ri vileg e to be chosen fro:1 !ne;1bers· of 

.the. ~ndustry' who a re not, in the •) ii~ion of 'the Adrflin-

-:>.tpr, a.d.Bquately ·- ~') re sented. o;, the Co (le ' lmthor- i ty. it . ~ .. 

A.t . the . time . the ~de Aut~ ori r D · s o::c_igino.lly set up , there · ei~e 

.three major ,t.r·8_de associati ons in exi s t ence , P.hich ·between ther~ ~esente.d tl;le 'large r portion of ··the i ndustr-y located: in tl:e Erst. There 

is also o'ne asso~i tion l oco.tE?d in Chic ()_:;o CL11d had a sl.:eleton org;u1ization 'on the cif~c Coast·. Since tha.t tir:1e , the co:1di tiou h s chenged 

ru1d t; o of the three m[).jor assoc i ations, eadqu:~rte i:'l{; in ~Te r1 York Ci t:r, 

hcwe been merged, and the third dis'ba:1cted. i1hile trhe n it nac advisc:t'ble to 

bas e tne set-up of the Cpde Authority u:·JOn as. oci;:~ ti ons , I beli eve it is 

unwise to non conside r froq t~w t vier7p oin t , pnd t l1c indus try is -.c:creed 

to t~is. ~ 

At the hecr ings hel d l ast su.mr.1e r, it n~s ins is tell. bf t l e Ac1J. inistro.tion thD.t the three a ddi tion0.l meube rs C<'lled for in the ord.er of 

approval should be aced upon the Code ~uthority . After oore or less 

acrimonious arge.nent, the industrJ une.nimousl~r c.[;reed. that the c.:1 >O intment of thes e three e~tra Qen should oe l eft i n the h"'.nd of the Administration l.'Iember. It is to be noted t h0t i n 2.11 t 1 e discussions they 

laid em·ohasls uuon their desire t hn.t the Adninistro.ti on iier1~ cr , uyse lf, 

make th se a:.Jp oi.ntments. I tried · ·ri thout effect to sidetracl:: this r·e-

~J onsibili ty, but since those da~rs condi ticns h."'~ve oeen Mnr kedly ch<-'ng ed 

and I, therefore , y resent the follo n~ n<-nes fo r your e.:J~) rov : 

9811 
- 300-

I'l·orri s 1hi te 

Sty lecra ft Len ther Goods Co., 

501 Seventh Ave . , !. . -. C. 

J. i.iichel 

l'ichel , Haksik & Fel dman , Inc. 

159 i\Ic: d.is on Ave ., li. 1£ . C. 

A. Greenebaum 

Ch ic ag Co., I nc . 

6 Ea st 32nd. St., li. Y. C. 

l.fr. Uhi te i s gener-ally c a lled the Fa t hc r of. this indus try. He 

is the most colorful man in it. Ha has b e en some\7h a t of a. ry roblem to 

the industry beccuse , nhile in h is e.:u·l y ~rs he '1<\S <'. g reat builder, 

having lost his fortune , he seer~s to h.:we ch?.nGed his vien:p oin~ and for 

C'. nh ile it looke0 . .:-·S t h OUGh . he •-re.re c;oL.l{; to be the creat destroy er. 

HO'?eve r , ~1 e h[:'I.S v ision C'. ~ d i r:1a t;in['.tion. i.ie c 2.n look at the p robleTJs 

from an industry vie1noint o.: _(]_ since he hrs t.;r eat )0\! er for evil• I . 

believe if ··e ort.nc hin i nto _ the fold 11 e n nake h i il e. o~:er f0r good. 

I, the ref ore, ur ""e ap:')r .ovo.l of h i s n0.T:le •. 

. ..~ .. J . ~iche l has, . since t h e i nQS};> ti on of ·the Code Authority, been 

a ctillG c? S e.ltern?.te. I n h is ti·)e ·he has been the b r ent · outsto.nding 

s ol esman of the industr:r. To\f- a~· he heads i~ orn1 business ·C'.nd -rrhile 

he is of t he excitabl e t ·:'".!.)e, ··still I have to c redit hi!ll \;-i th :a r:ns ) 

Of c.:.ffnirs , and he defini tcly sh0'7S a de.sire to approach problems from 

the industr y ' s vie .:p oint. I, therefore , recomne nd h is narae for apprcval . 

• Greenbaum - I SUlY·)Ose there is no one in this industry tTho 

knows and unders tancls e.s rrell a s doe·s Hr. Greenbr.t'U.r.'l the labor ~) roblens 

involved in t h e indust~J • 

uthority me e tinGS ~s 2n 

a gr ea.t ?ddition t0 this 

of his <:J>Oi ntnent. 

He~ hf's U)on ['. fer:- occ2.si o.n s O..:? >e a red. at Code 

P.l ter_:1, te a:10. I Nl very certe.i n he nould be 

ou~o ~t I, the r e f ore, Cl.sl:: for y our ~Y rov l 

The a:> 'lointme11t of these three men would fill the Code Authority 

and f or these no C'Jlendment i s :L le c essn:ry. Th is does not, ho~Jever, t ake 

c a r e of the t n.o additional men re quired by the Te11-Cent to FifteenCent Group . To p rovi de for these two they clesire the..t there be e.n 

ame ndment t o the Code, wh ~ch wi ll be resent ed. to you t h is c or.:ling 

ueel-:. 

You mc?y E'.Sk why I do not recomaend thf'..t thes e two last should 

e included in the three addi tiona). men-bers a lrec.cl.y p rovided for under 

the o'rcle r , n.n'd t hus obvi a te the necessity of [lJ1 a.JJendment. Uy ree.son 

for not r e cor:nnending such a ·o rocecLu.re are 2.s f ollows. 

9811 
-301-

It ~ill , in my judgment , be for t he best interests of a ll concerned to have a Code Authority set-uu bnsed uuon the bn~ ad u rice ... - - ranges, because their ::_J roble:-Js , at· leb.st in so far as distribution 

is conce r ned, are someuhat differe~1t . I attqch here•.7i th the c om-

"')lete detailed. set- up that ne nill have if your ap:)rova l is given 

to these tl ree re~oLmended nanes and to the natter of an amendnent 

to tc>.ke ca:a of the e.dditi onal rou · As you look at it, you uill 

see J"'ho.t every price rFtnge is a dequately taken co.re of cmd that 

geogra hic ~ a reas are p roperly rey r esentedo 

HB 

Ere 

9811 

Vor.y trulJ7 yours, 

o. rr. PE..:Jtso:r 

.Aclministr['l tion Hembe.r 

I 

I 
- :.:502-

I ATI 0l;AL ICCOVCT .AJl r ri STRATI Olf 

45 Br oad-:-rc:>y T. Y. c. 

r . Le i gh E. Ore 

As.;istcmt De·') ut r Adn i nistrfl. t o:r 

Ap·oft!.'el ct~~on 

Co•1r::e rce J 1.nldi ng 

Ta shingto: , :U . C. 

Je~u ry 31, 1935 

HE : Lo.di e s ' Hnr.dbt' . .g Cod e Au thority 

Dear ··!lr . Ore : 

Sometinc at,;o I took occr'si on t o 1oin t out to the membe rs of 

t his Code Autho-..:i ty t :n.c t if L1ey c oul c. no t r-:.ttcnd me e ting s of the 

Code .Aut~1 ri. t~r ~ c~1e y 01:L.;h t t o res icn r:.nd )err11 i t s or·1eone else to take 

t heir ~J ac , t:1- t ~re busine ss o:f:' L1.e Co<ie ut~ ori ty Tia s imp ortant, 

end thc t i t '·n s :rhce ~:i.7 t~1 t c.l.l. S.10U1U b e ) r e sent , at least in 

s o far as ~s ;cP.e:·o ll~r ·oos 3ibJ.e , 

In looking o·ve r tl:.e r e c ords of 2. t t endance recently , I note that 

t h.e s e nen , to l"hO""'l I 011c e bLfo1:·e 1·-rote on thi s nc.tter, are still very 

neglectful of meec i ngs ? .Al2. c.:_ .1e ~ : en ," r.'e t__; ood me n . They have so 

tint; to of fe r :rl-:.encver th~. p ::_· :; ·1r cm t, ['.1 I thin.{ ne should be conc e rned rr, en they ~-e abs ~t £"'S mu ch .s t h e:r a :ce . The folloning is the 

r ecor d: 

arne Total . ec tings ~' G.~G !l t Absent - --- Georg e .feyers 26 11 1 2 

R. :or et 26 9 17 

i1m. Ka din 26 15 11 

I am \70nde rin{" i f a li tt1e r eni nder fror1 you might not be advisable . 

HB 

9811 

Very trul r Jrours , 

/ s/ O. U. ::..: .t ~ SOH 

O. If. P:C.~ ill SOU 

Adni nistr ation l'.Iembe r 
- .:> 03-

l'LI\TI O: .iili rt:;:; COV~- .AD1.II:I STR.i,.J.1I v;·· 

45 Broadm:;.y , lJ. Y. C. 

~· RE: L.L'.IH:SS 1 Ht~:m:a., l.G CODE .i1.UTH01.1 I T'J 

LiEETiliG J?E3Ru_·,ny 19THo 19 35 

Col. Walte r ~.I F~ngum 

De)ut y Admi ni s trr t or 

Textiles Divisi on, 

Na tional Recove r y Ad.rn is on 

ITashing ton , . C. 

De a r Colonel I!angum:-

Fcbr unry 

t Tientieth 

1 933 

For once t hi 9 Code Au t ho rity s t nL' t e d on tirrJe ,._.. ,i t h its Dee ting i nsteE'.d of the usunl s i xt y u i nut e s l r t e . I ryonder 'Thy i t i s that i n one 

meeting out of every four , t his m.J.~! h<l.S to be ct tunul t ous o:ne ? I 

thought last n i ght , for a oinut e or t n o , thr,t I n:-1,s go ~ to l os e rw 

rea son but towa.r cl_ s the l a.t t er -)<l.rt of the evenine; - I supp ose beco.uso 

they ;:re r e tire d out, r a t he r t h£L.'1 n;y infl uence - they di d qui e t do;m. 

The Lc:,b or member r e:Jr esen t a ti ve o;_'l Jointed to this Code Au thori r 

see:Js to be .:~-n abl e citi zen and desir ous of un ~ t and inc nl l 1J eras 

that c or:1e before the Code Au thority . He d oes n ot nRrr o\7 do,·m his intere st t o those Da tters strictly rel a ting t o L .bor bu t i n j ects hin sel f 

into eve r y dis cussion reL .ting to t rade ) r a c t ices Clnd ot he r strictly 

industria l _matters. Pe r sonall y , I Je lco 1e t his c:.tti t ude be ce1use I believe many of these nen have br in s c:.nc_ knoTI ho': to use then ·c-md oft 

time s have a be t t e r v i e\T]Oi nt of i ndu s try ' s =o robl e:n s thnn does t he i ndustry itse l f . Ho-rreve r, i n this pr.rticu l a r situr·t i0~ , it ve r ge s on 

being unfortUJ1a t e , becc;,u s e of t he r e se11t n ent 0'1 the pnrt of industr y tona rds Labor and p a rticularl y to-71" :ccls this i ndi v i C:.uHl l nbor r e:;_J r c sen t ati ve becau se of t heir fee l i ns thr.t the Union has bone Cormuni st and 

that he t he r efore rep r.esen t s CorrJr.1UJ1isn. B:o1.1eve::t , ti· 1e mo.y cu r e this 

situa tion. 

The outst and i ng subj e ct 01 1., ~t un 10.s t he heal~ing schedul ed for Februnry 28 t h a nd the r e '-ras a v er-;,r ev i den t de sire on the -)C1.rt of the Cocle 

Authority to ha ve it )o ed . !Ir. I:i t t ent hal )Ointecl out thn t t h is 

!'light '1/0rk ha r m to rraj_~d s t he nen g r oup C'.bout to Je :-·.bosrbed by this i !ldustry. 

After lis teninG to an extr er.1e l y le:1gthy cliscu ssion of the rrhole subject, I made the sto.teoent t hat nothi nf; ha cl be en srdd tha.t VTOul cl l c r.d me to 

sup~) ort the dj ur~ 8l1t ea r:1ade t o y ou; thn t i t '7B.S my belief the hvE'rine; sh oul d t ok e ·JJ.ace, bec au se sooner ~ late r t hey h <J.ci. to f E'.c e the settle9811 
- 304-

ment of the lonr; dreyrn out quosti 0n of semi-sY.:illed h ou rs a nd Tiage s 

<md it micht juut D.s uell be f<'.ceu. norr s a mon t h l o..t e r. 

The:,' then 11 r ocea.ded ni th their :ol ans fo r the her-.ring , g oing on the 

ClSSU.I'!l•) ti n that t11e henrin[; dD.te '70Uld no t be post}) oned anrL I think 

indu., t r y l'ill ·be '7ell re'•resented , t . th.:1t t ime . Of one t hin.:; I ma 

very cert.: in. Laoor ,-!ill be -ro ll re· )l~ ::;o;.1ted a nd r Gtron£; f i Gh t 'l"ill 

be r,Iade by the t y1.rt of the in(LusJ.:.ry . 

I n re? in~, the ninute3 of the Jrocec:Un:. : me e ting , I wac reninde d 

that at that meeting , l ab or rea_l;_e sted e~t < esen ti n c:tnG. :? resentec.l a motion asl'"in.~ tho Co.l.e A1 ltho:i.'i ty to r e coramel1d such t o the Administrat i on. ,incinr; no soco;.1clAr, tl e JaD.:.ter 1-:as l'O)~)eo. . LC'.bor bases 

its cla in for this U:!JOn the fC'.ct t hc;.:v i t i s the i r belief t h E'.t the inclusion of the nery e;r oF·J, tvi th its s one· rro..t C:.i fferen t l t\bor ;r cb le m t han 

hand 'ua}_;.., , rJc?J:es it difficult for :'.. a oor, as a t :9 r e sen t r_ppre sented, to 

do AA Cl.de ,UD.te job • 

. 1y feelin:~ i s tn:-'.t there is no need for a s e concl. l abor re:presentative on this Code A-.1Jchorit ;r. L1 sone in." t anc es, notabl y I1illinery, 

I am delighted th.:"~ t there n.r e trro l··'Jor r o;JresEmtrtives nnd in the 

main it uor:{s e:ctrenely rre l J. anG. muc:n oc.: valu e co:1e s fr om those t rTO 

me!1 . Becnuse of the disru:_pt.cd a~)o r situat ion in h nnd 1Jags and the 

growth of the C"n!lunist r.1. ent ~ I do :rw t believe it n ise to stir up 

the troubled nr>.te r:J n.t ~1 is ti..1e , by the c::Y•)O int:1el1t of a second labor 

r eure"' en tf' ti ve .. 

Some time nr;o, I sent fol~'7< rc1 o recor.1me ndnti 'm '.7i t h r e s_ye ct to the 

o.p ·) oint~1ent of new men u:1 on t h is bor.l:ro ~J:l e l et el~ t72.S s ent to either 

Col onel Berr-J or Le i gh O:re rmd <c.::no :-.rleJ.{_:r.'1ent '.'E'S mf1de. At ab out the 

same time By- L,q: ·s \?ere <=\iJ~ ve d. r-.!<l ·.1·; 1 the i nsi s t ence of the Lega.l 

Division the us e of' alternates, ·::.1i.ci1 lw.o. 0een cust onD,r y , '7[\.S discontinued.. The l ,•.ck of n-;J !r oval of tho8o 11') '!7 name s is sl ou inc; u1) the uork 

of this bod.y , b e ce.use one cP,nnot c. CL- rt.·.in of · a C}_uorum c?.t a ;"Jeeting on 

._.ccount of the sncJ.l number of 110·! qna.lifie d t o sit. I n onder if it 

\7ould not be ·.Jossi ole to h<J ste 1 t!1e ->:~1 ; rovf11 of t he nc?J!les submitted. 

I urge t hut this be done . I r onli7e th ~t ~e se 8en ?ill only hold offi~ 

for ~ short tL1e , since '.ri t hir,_ r · '-\~ ~- r.i xc.y d2ys a: neu Code Auth ority 

nill have to be subni t t ed to y o,1. for ~;o Jro·;r.l. 

The neetin:; a ·, journe' ['b out 11 :15 ·) · T'1 • 

011PICB 

Very truly y ou r s , 

I s I 0 • Vl. P:;jA..'tS ou 

O. Tl. P:.tillS ~T 

&IiilJL:)J:_ .. :n:o .. illi~ J::.; R 

lc 

.i 

' ~tt 

9811 
National necov~ry Admini&tr ction 

45 oa~w8y , N. 4• C. 

Co l one l WRl ter Mangum 

Deputy Administrator 

Nat i onal R~covery. Administration 

Washington, D. C. 

I~ r e : Ladies ciaridbag Code Aut~o rity Meeting 

Thursday nisht , March 7, 1935 

~.1y dear Col onel Mangum : 

Three outstanding items came up for discussion at l ast night's 

Gode Au thor _i ty meet i ng. 

The fir st is the constantl y r ecurring ues ion on the part of the 

Code Author ity nith r espe c t to the stay granted sometime ago to the 

Vi r ginia Ar t Com"9any . I d.on ' t know whether you are fe.miliar with the 

situation . .. Br iefl y , it is ~hat this company , through the good offices 

of Senator Gl e).ss _obtai-ned a st ay on the provisions of this Code without any knowl .edg.e -·on the part of t he Code Auth ority. They have al ways 

obJected to this si tuati on, and constantly point out the ser iou s harm 

that i s be i ng: done to the Inciustr:r by t he Virginia Art Company being 

pe rmitted to carry on what ~ey consider a ruinous wage and hour 

schedul e • 

.Again ::.he Code Authority voices its solemn protest aga inst this 

situation. The Code Directors informed the Code Autho rity t hat Colonel 

B.e.r ry had 1 .;fused to r e- o"9en the rm t ter, and therefore , t he re was 

nothing ' they could do about it. I think myself , the matter was not 

handled in its- early stage s strictly acco rding .to Hoyle . I bel ieve 

this earl y action was taken by Mr . Barr when he was the Assist ant 

Deputy in charge. However, I am not certain about thFlt . 

I wonder if the r e is anything that can be done ~o straighten out 

the matter, because it i s subversive of good order end di.scipline . . . . 

The seco.nd most impor tant rnatt er was that of the budget. The 

Code Authority accepted the report and r ecommendat iqn of the Budget 

Committee , and within the next f ew days, I expect to send forward with 

mlf ap~ oval the new budget pr oposal . At that time , I wi ll take occasion 

to com 1ent _on some of · the particular items included. 

In the meanwhile , I do want to spec i fi cally draw your atten i on to 

this. The old budget was set up on the bC~sis of roughly $135, JOO. ,o. A cer tified auditor' s repor t shows t hat in the nine months !if~ of the 

budget , they expended a trifle unde r $73 00 , and as a r esult they 

have today a cash balance of approximately $42 ,noo. oo. The care 

exercised by the Finance Com.r:1i t t e·e and the Code Directors, and particul arly the Code Dir ectors, is a pr etty good answer to one of the sta

ments made in the Senate dur ing this· past week a.s to Code Au thoriti e s 

being a "r acket " . 

9811 
-:-306..4 

It was un~nimously agreed last night that at the close of the fiscal 

year, March 25, 1935, $30 1 000.00 be returned_ to the Indus try, pro-rated 

accordin ~ to epch unit 's payment to the Code Authority. This I feel is 

an excell ent move , Pnd of course, will :nake a. good impression upon 

the members of the Industry. 

The third ma tter of moment, although not so important in itself was 

the time and pl"~ce fo r the next Code Authority meeting. This will be the 

annuCll meeting , r>nd vrhil e there was sorr.e division of opinion based on the 

fact the.t membe r s of the Industry might misconstrue the move, it was felt 

that he me eting should tAke place in Atlantic City. I told the Code 

Aut ho r~ty that there will be no objection to their having it in Atlantic 

City, pr ovi ded, of course, tr at the re will be no undue expense incurred, 

I believe, however, that unless something was to pe g8ined along the 

line of their being able to quietly sit down and consider depressing 

problems, there was not much poi nt in going to Atlantic City, and that 

if the expense that would be invol ved \?e r e not so great, a better place 

ould be Chict:lgo , since .it would he.ve a good effect upon the :Bag Industry 

ope rat ing in th~t cent er. 

ln this genera.l connecti on, I am concerned about the set-up of the 

Code Authority. This nr esent Code Authority's term of office expires at 

the end of this month o Under the Cede , certain associations were reco~ 

nized. Since the Code was writ ten, those associetions heve retired from 

the field agreeing in so far es pcro i ble to consolidate their membership, 

in what is to be knoV"n s the L aCii .J "' 1 Handbag Institute. Since that 

Institute is not ye t urcpe rly r; ·n zed~ it is my belief that it would 

be wise to continue the pr esent Code Au thority in office, until the expirati on date of the Act~ tore t hat ti:ne arrives, the Institute will 

le }roperly organized and V"e then can see whether it should be recognized 

as the proper agency to determine the membership of the new Cede Authorit 

The Industr y at this moment ~s in a sense et the cross-roads, and 

tt is for politic reasons th8t I counsel you, if it be possible to cont inue the nresent Code Authority for the period named above. 

Sometime ego, I wrote asking you t o nush forward the approval of the 

additionel membership. We are st ill constantly faced with difficulty in 

obtaining a quor m for the various neetings. I wonder what is delaying 

this. I should like very much · to see this approval come through togethel 

with your fol o,..~ng suggestion above, with respect to continuing the 

present Code Au thority. 

Changes m~de by you and approved by the CodE;! Directors with respect 

to t o or thr ee of the amendments proposed were formally approved by the 

Code Authority. 

OWP:LB 

9811 

Very truly yours, 

/s/ O. W. P:b;.ARSON 

0. ~~, . PEARSON 

Administration Member 
)olonel Walter Mangum 

)eputy Administrator 

;RA Textile Division 

- 307-

NATIONAL hECOVEhY ADMINISTRATION 

45 ro c9 vray, l1i . y. C. 

)epartment of Commerce Building 

washington, D.C. 

)Ubject: Ladies' Handbag Code Authority Meeting held 

Ap~l.Lit_~YJ~l£9.Ef::A.s t~rJ:a . New York, . Y. 

ear Colonel Mangum: 

April 5, 1935 

Starting out to be more of a social evening and celebrc9tion of the 

'irst annua :. meeting of the Code Authority the meeting really developed 

.nto a lene; hy, somewhat trou.blesome affair. 

Before touching upon the troublesome problem ? r e sented let me first 

!lear away the routine matt ers. 

There wes presented an annuel report of t he Chairme.n, Secreta ry, and 

~reasu.rer. These reports are informa tive Bnd I suggested that they be 

)roperly edit~d, put into good shape and whatever charts may be necessary, 

md proposed 'thP t all of the material be published, circulated to each and 

3very member of the indus try as well as tl: e Administration in Washington. 

The Virginia Art matter was brought ug again ;md the C<Xle Authority 

3CCeded to your wishes as conveyed to then by Mr. i.1ittenthal and there it 

~as allowed to rest. 

Labor was rather articulate and 'Phile agr eeing that the Code end the 

Jode Authority have been of materi el help this past year, they have fallen 

:'ar short of their pos si bili ties. Labor r epres enta.ti ves seemed to feel 

chat it was the province of the Code Authority to help labor organize the 

Lnd:ustry. I took occasion to point out the nec e ssity of an exercise of 

Jatience in these matters and it was not the province of the Code AuthorLty officials to play a part in the unionization of factories and shops. 

The troublesome matter referred to ab ove is t hat of the a ction of 

~orris ~mite who prior to his failure for $19, 000 ,000 some three years 

3..go was known as the gre&.t builder. After his f a ilure he succeeded in 

)btaining a large sum of money from the Rli'C vli th which to start over again. 

Apparently as a ' matter of expediency he has devel oped into being the 

~reat dest: ~yer. For a long time he took the position t hat h~ w~s above 

bhe law an~:, he undoubted~ , violat ed the Cede in every r e spect possibleLn fact, t .=.king a keen delight in showing all and sundry tha t he was above 

bhe law; t:na t he was a 1 it tle better t han anybody else becaus e of his 

~bility to get the inside track on Government funds. During the l pst 

several V'Teeks he has been building a tremendous stock of ha ndbags made of 

Leather which I suppose normally would sell at be~ r t han a $2. 00 average 

~nd is now in the process of dumping them on the me rket eo that they can 

3811 
- 308-

be r esold at somevo:he r e around 80¢. In eny e vent at less than $1 . 00. 

Si nce we are at the beginning of a ne w seascn you w1ll a~preciate how 

destructive this is, not alone from e :n~nul'::>ctur rs po int of view but 

al so f r om the :.·eta il e r s' s·nce it of necsssl.ty depreciates the value of 

all stocks on hend . The people pa ti~~ rl y hit are the $1. 00 bag 

manufPctur e r s , ""hose pr oducts e r e l Pr gely !!lade of artificial leather s. 

It coes seem too bRd t hPt th~ ~fmufa cturer can on the one hand 

borrow ope r ating money f rom our gooc. Uncl e Samuel and on the other hand 

flout the l a111.r through prpctices that a re wholly destructive . Of couz:se, 

he industry is particul~ rl y concerned because of its possible effect 

u _ on the white see son fast .. approe.ching. Due.;.to .. the .lateness 0f Easter 

it will onl y be a week or t'!'O e.fter that dpte before t he bag industry 

will be into the nevr white season c>nci wi th such tactic s there is apt 

to be a conside r abl e mortality on the uart of bag manufc>cturers, for 

obviously they ari~ ot compete. 

r ., . . 

In a round table discussion ·th is :norning rJi th Ur . cCarthy of the 

Consumers Advisor y Board not· stationE.' d in X:!ew York, the thought was 

advanced that ~oss ibly through the NRA Li ason Officer the matter might 

b e br ou .fSh t to the at tention of the Fec erc> l Tr a cle Commiss ion or the RFC 

and. some st eps mt gh t te taken t o nut e stop to tnis demoralizing conditiono It certc-.:n_;r wo-..:..~d: oe a gr eat f eather in your cap if some quick 

action could be octa ned ~ 

The Ladies 1 :=:andba., me t i ng e dj ourned at midnight . 

.. , .. 

Yours very truly, 

/ s/ 0 . ~~ . PEARSON 

0. v'" F.b.AESON 

AC:mL'li ~ :; at~:':l Membe r 

~· I understand t Le i ndustry is t.ended .ng a banquet to Me s srs. 

ittenthal and Be:;:-ko1"lit z on April 3 ·J (~. 'C-l ey ere ho~ing thet both Mr. 

Vincent and ytt rself vrill honor L ei:r. hy ·your p resence that night. 

Invitations ,.,ill bo f or "Iard to you · very ·C' h ortly. I kno~ it is a tax 

upon you '·''0 geDtl Pmen to ask your -o r c s enc e but I honestly believe it to 

be a politic antl '11'•i se thing t o ~ Aft e r a ll these men h~ ve ·rria.de a gre 

strug le this nast yee r t o ull~ t S.em:sel·res u p by their boot straps and 

hey ou l.d have a ve r y hi ·h r e68 r c, 'and. i·c spec t f or you tvro· gentlemen. 

I \ ould like to see you l end them encourc> g~ ment in the manner I suggest. 

o. T:i . P. 

r:-s. I think I shall have to be in · ash ing ton next• Thur.sday at which 

time I hope t o h8ve an opportunity of s e e ing you. 

O. '.1·. P. 

OWP : MKF 

9811 
Il DU TRY 

NATIONAL :t.ECOVERY ADt11I ~IS TRATI O 

45 3road~~y , N.Y. C. 

MEMORANDUM 

LADIES' a~DBAG INDUSTRY 

July 10 , 1935 

The Ladies' Handbag Industr y as an Americen industry dates b?ck 

abou t 50 year s. Dur i ng the first 20 year s the r e was scarcel y mor.e than 

6 manufa cture r s at a t i me mpking handbags and all .of these made in 

addi t i on a ful l lihe of l eether goods. I n those earl y days the industr y 

as known t oday , ~as scar cel y a separ ate i ndustr y . 

At the -p r e s ent t i me the r e ar e engpged 379 ;npnufacturing units 

with 146 a~to s and ap _r oxi mate l y 15, 000 workers. 

The e stimated capital investment is about $10 , 000 , 000 and its 

t otal vol ume is about $40 , 000, 000. 

The yea r 1927 was probabl y the bis year of the i ndustr y , both i n 

volume of sal es and efits . At t hat time it was mainl y centered i n 

J:ew Yo r k and to a gr eat degr ee al most whol ly a. 11 craft 11 industr y . 

As a r e sul t of the soft l iving end. thinking of the l ush year s, 

1925 to 1929 1 troubl e s vri th l abor began to devel op so that first one and 

t hen othe r manufc-c t u.r er s decided the time had come to get away from the 

big ci ty. This wa s the beginning of the migr ation of the industry f r om 

New York, and l ed to the genera.l exodus in 1935. Today at least 75% of 

the industry i s s catter ed throuF,h the Pen Engl and States, ew Jersey , 

Pennsylvani a , with two or tn~ee factories in the South and some in the 

Middl e We st . Pr ior to the scettering o.:. the f pctories and leading up 

to it, a gene r al strike was c?lled in the late su~ er and earl y fall 

of 1934. Thi s strike was abortive . 

I t 'as becaus e of this first migration tnat so !nucn trouble and 

bi tter ne ss ensued in the ea rly days of the PRA. Hatred ?l~ost grew 

up between the ou t- of to~ manufactur ers and the · ew York rou~ . 

TliADE ORGAl'' IZATI OrTS 

Befo r e those first ~.A days there hr.d been t,_...,o ajor trade organizati ons in eltist ence , the ol de r one oeins t l e 11.sual t r ade organization 

type, gener al in i ts scope pnd, of course , ineffective. The other, a 

smaller or gani zati on concer ning itself ~ith labor uesticns and agreements. 

ring the days of code wr itin6 , a tnird pm'7 erful or ganization as set 

p, the membe r s of which consisted of out-of-to~n ruanuf?ctur ers. It was 

vi dent du ring that t i me , and at the presenta.tion of a code to the 

drni nist r a tion and duri n the subseouent hea.rings and conferences that the ~ -

ew Yor k gr oup, st ill being in the ascendancy , wPs bound to accomplish 

he elimination of t he out- of- toFn manufacturer or at least place him 

n a position whe r e he coul d not longer capit?lize cheap labor and l ong 

The wi nning of the fi :ht by Ne•·: Yor k resulted i n a sharp division 

'Phen the Code Au t hority was finall y set up , it "Was an armed camp. 
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CODE AUTHORITY MANAGEMENT 

In the first days , afte r I inaugur ated t he Code Authority, it became seemingly imnossible to bring about peace and fo rtunate it was that 

the indus try had selected men to head U;P. th~ Code Authority work in the 

persons of l.Iessrs. Abrahe1m Mi ttenthal and Max Berkowitz, assisted by 

Maurice ivlossessohn. I say it was fo rtunate that the se men were selected 

because they had been connected with the industry for many years/ had· 

v1s1on, level heads, integrity and -patience and thus were able to carry 

on successfully. The first t·~o named ov-ined their bu~iness es as manufacturers, one in his business l ooking af te~ distri oution and understanding 

those probl ems, and the othe r a production rna~, . under~t?nding all the 

tVTists and turns of factory o-pe ration. r~ _Mo ssessohn had dealt with 

the industry through the Associations and had·· obtained therefrom a broad 

understanding of the personnel of industry , their peculiarities and a 

knJwledge Of hOW best- to appro~ch and ~Rndle SUCh . men • . .. 

INDUS·:rRY PEACE 

After the Code Authority had be~n in operation for o or three 

months, I made up my mind t hat if possible I must bring about peace in 

the industry and one night at a Code Authority ~ee ting erbitrarily 

adjourned the regular meeting at 10: 00 i·n the evening telling the members 

that we would reconvene as a meeting of industry, and that I was prepared 

to sit with them all night and al1 ' the next dey if necessary, to find a 

ground upon wh ich all mie;ht stend to the end that they would accom-plish 

the good thet c:>l l agr eed could come under the code. That 'nigh t session 

lasted until nearly 5: 00 in the ·earning. It was l ater followed by 

numerous conferences ith vari ous groups and sometime l Ater a 'further 

conference took -pl8ce .J-n the ·train enroute t o a -pu blic hearing i _n 

Washington. T-his cJnfer ence wa s continued &.'n Washington a t the Carl ton 

Hote l, adjour ning at 3 : 00 the next morning and peace agree'd to and ~igned 

Unfortunately , -peace wes not decla r ed betvreen the industry e1·nd 

labor. Included in the original cafre was a clause ~h ich called for a 

definition of semi-skilled l abo r. Realizing the difficulty of determining this point , I perso.nally visited numerous factories in and out of 

New York to see whether ·I could r each a conclusi on a s to where to draw 

the line as to skilled, and semi-skilled labor. Having f ound it impossi'tl 

to reach a conclusion reyself, I so informed. the then de~uty and it was 

unfortunate that at the public hearing refe rred to above the Assistant 

Deputy in charge eithe r did not understand or s eemingl y found himself 

unable o p r eciate the difficulties of writing a conclusive efinition 

and insis ed one must be wri tten. Th is led to increasing the bitterness 

as bet~een the manuf ctur er, labor and the Administrati on. Notwithstan~ 

ing his, the Code D1rector ate kept its head, its feet on the ground and 

he steering of· a fair course, and a.lthough a gener al strike was called 

lasting some 60 or 90 days, succeeded for the ye a r 1934 in bringing the 

industry into a better financia l condition than it had enjoyed for many 

years 

F ANCE 

The financing of the Cede Authority was based upon assessments and 

while th' s was a label industry, labels were sold at cost. The financia· 

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operations r.;ere so \"ell conducted that at the end of their first year 

the Code Authority was able to declare a dividend and r eturn to the industry 25% of the collected assessments, which assessments were obtained 

from 98% of the industry. ' 

The first year's assessment basis was 1/3 of 1%. For the second 

year this was reduced to 1/4 of 1%. 

EMPLOYEES ENGAGED 

The total number of emuloyees eng8ged by the Code Authority we re 17 

and the Directorate were satisfied ith a very modest office layout. 

COM?LIANCE 

This phase of the work is one that will always stand out because 

of the patience, forbearance and understanding V'Tith which it was conducted. 

Finding complaint as to inability to live up to wage and hour pr ovisions, 

examination was made of f8ctory practice and it was invari ably determin~d 

th~t management was at fault and the right way pointed out to the erring 

manufacturer so as to make -oossible without punishing his po cketbook to 

meet the sc8les re~uired. In the large majority of cases this as 

appreciated and folloVJ ed so th? t the percentage oi com li~nce ¥1as always 

high. In the fe~ outstanding wi l ful non-complia.nce C8ses the u~ual rul e 

of obtaining influence w~s followed and invari8bly restitution obtained. 

STATISTICS 

For the first time in the history of the industry, the Code Authority 

machine pegan to collect statistical inform8tion, all of which material 

has been filed with the Deputy Administr8t ors. Had the Code Authority 

continued it cannot be doubted th['t the industry would have found many 

answers to problems long sought but heretofore unobt a inabl e . He r e again, 

will be one of the difficulties under their voluntary code s~t-up for 

without force of law I question whether industry will divulge important , 

necessary facts and figures upon ,-•h ich offici8ls can base constructive 

conclusions. 

80DE AUTHORITY PEhSONNEL 

The original Code Au t ho rity personnel never ch?nged. Ho ·reve r, since 

the code provided for three extra members the industry insisted in public 

1earing t ha t the Administrati on Membe r should apDoint these men , :~ ubject to 

~pproval of the Administrator 1 rather than leaving appointment in the hands 

:>f industry. The names of these three men were not submitted until late 

i.n 1934 or early in 1935 end not approved until t~~o ar thr ee we eks prior 

o the handing dovm of the Sunr eme Court decision so that the three never 

~eally functioned. 

~Ot.1tiU TTEES 

The Labor Complaints Com·!li t tee was set up but never a proved. 

The Trade Pr8ctice Compl eints Com 11ittee VTas annroved but never r eally 

unctioned because, due to the diligent and unuBual manner in which the 

~ode Directorate operateG. through which they pe rsuaded manufa ~ure rs of 

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- .. 1 . .--

the error of their ways ~hen violating code provisions, such complaints 

were adjus ed to the satisfection of all . 

CODE PROVISIO.S 

A reat mistAke was mede in . the o~der a~p vi n~ this code, ~he rein 

it was provided tl: e Ccrl e Authority ?hould r.resent to the Adm1ni s trator 

a definition of the ter 111 "se'!1i-ski lled11 empl oyee .. Apart fr om the impossibility of this determination it l ead to constant trouble between. labor 

and employer, 

Par pgraph 1 of the definitions was not a s clear and as OJmprehensive 

as it should h·ve been. This, of c ourse, was l arge ly the fault of 

industry itsel f . 

Wage and hour provisions were , to a l a r ge degree, satisfectory 

except for Section 2 , Arti'cle IV, 1rrh ich was st.aye d under the orci.er 

approving the code . 

In so far as trade pra ctice pr ovisions we re concerned I think it 

was useless to incl·J.de, as ·ofTas du::.e j n this and ILlany other codes, 

provisions respec tine: retm·n of go~ \".. s And commercial bribery. Such are 

almost imposSible Of enforr., .. lent si11ee trH;y cannot be p roperly checked. 

A well-.Jor.sid.ered: tnough tful at tempt was :nC'ld.e with respect to the 

homevrork nroblem~ I do no t need t o enlerse upon the great difficulties 

surroundinb this particul a r ou estiono Ho~~ver , the int e llig ence of 

the Code Directorate was broll. ·r ... t to beF~r in such a manner tha t C.efini te 

progress ~as b~ing mede torar6 the ~~minaL on of some of the most glaring 

evils, underpaymPnt 9f lab or bei~g the most notabl e . · My own opinion is 

that this subject cc=m best be app:;:oac J. ' d thr ou-gh the agency· of various 

women 1 s orcanizatio·"ls of the countrv ~ l o ~<i ng toward the time when they 

will insist that c: ll sources of suppJ y rrc:r::k goods to show their origin and 

check such to determine mill condi i.on s~ Of course, to carry this to Et 

successful conclus.ion you mou1. ci need a .. ·a.ct of Conc:;ress or of the various 

state l egislatur es nroviding for t hb ~ be1J j_ng of a ll merchandise. I 

don 1 t mean thPt such l acels noulO. o.L· necessity carry trade nemes, but 

have identification ma~ks that would. 1Lke easy the discl o'sures of the 

point of origine Marking is At nresent rec.:,uired unon c.ll imported goods 

end I s ee no reason ~hy it should not be u pon articles of domestic 

manufacture .· 

LABOR 

During the lC'lst t'~O months of 1934 c:md the first three or 'four month~ 

of 1935 a change begpn to take pl ace in the com"?lexion of the l abor union 

operating in this industryo ApP[' tl-;~ , trouble hRd been bre1J!Tin"'". in the 

union for a c onsiciercble pe riod of time ~nd since the general strike was 

pret y much of a st~le a te , if not a totAl l oss, the internal fight ca ame 

out into t he open esu~ting in 9 compl P.te over-thro~ of the old union 

management . I was infor med that tne com.:ru.nists haO. definitely got into 

the saddle and this made the situation as between lalor and industry mor€ 

difficult than eve r. 

As a result more !Ilanufacturers left rTew Y·ork and Ft number of such 

were hailed into the courts ~nd befo re the Reg ional Labor ~oard for 

9811 
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violRtion of 7A, In pr~ctically Pll of t he se ca ses t he rnanuf ? c turers 

ere found ~ilty but thin~ h?p_ened c s t ne r e s eemed no pcw er t o enforce decisions h?nded down. 

EF?ECT 07 CODE 

An interesting sidelis ht on t h e uental conditi on of the infrustry 

late in 1934 is best illu strated by relating an incident that happened 

just prior to Christmas of 1934, Two mC'l nufC'l cturers v.rho had never been 

reBl supporters of the rode, hE!.ppening to be in Jas ~1. in n and finding 

out that I •;·as C'llso there call ed me on the telephone t o ask if they 

might see me for c fev: minutes that evening. 'his I agreed to and was 

told by these men that they v:ished to apologize for C1 ny sins of 

omission or commis sion respecting the code on their part, that t h ey 

.ere about closing their books for the year ana were del i~hted to be 

able to say that in their opinion the code had served them to such good 

purpose they were going out of the yeElr in black ink and felt further 

that meny other members of industry were of the seme opini on as themselves. 

Having reached t h e :_Joint , .. here at least 5$'~ of the industry 

mere thoroughly sold on the value of their code e.nd its administration, 

the industry was literally stunned when the Supr eme Court decisi on was 

handed down in the Schechter case and today are moving heaven and earth 

to get the industry to voluntarily agr ee to a code of t he ir o~ n, a copy 

of vrhtch I attach and v;hich is on file with the }edera.l Trade Commission. 

I am told that 85% of the industry have elready a ssented in writing 

to this document ?~d for the r e st the old Direct orat e , still maintaining 

an office on a very modest scal e , ar e gin in~ to exercise pr e ssure t o 

bring about conforme.nce t hr ough l oc pl banks, clergy and chambers of 

commerce or boards of trade in various l ocaliti e s in V''hich such manufacturers are situated but I recos nize t he great difficulty of enforcement 

even with a 100% assent -:1i thout the support of some governmental agency. 

In passing I may sRy that any steps t "-'ken ub ec~ nt to the Supr eme Court 

decision have been closely scrutinizeC.. ar.d in s o far a s possi ol e opinions 

sought from the }ederal l'rade Com:nissi on as t o lege'l li ty. 

Respectfully submitted, 

/ s/ 0. \1, PEARSON 

0, 1• • PE.ARSOI-! 

Administrat i on Me raber 

OliiP MKi 

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...... 

E XH I : r'T 0 

:E riof O !'.. Bo:no Wurlc · (4 Part;£) 

. . 

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EXHL8IT 11 II 

Part 1 

PLAlT FO't CGriTROL OTt' HQR;;EWORK 

MID 

AFOLITION OF CHILD LAEOR 

FOR THE 

BEAD BAG NDTJ ST ~Y 

9811 
·- r 1 ~ • 

REGISTRArr:'ICN TY l.:l!t'WAC'PURERS - - - - - ~ - --· 

EYery manufacturer or cont:rac,:;o :- -~Jro : .•. i·rine; horne'POrke rs on handbead.i TJ.P.: or c.r ~h0 :;-he<tdin?· l!rvst. I e"' · . .:; t,clr i; '•1ecliatel.v witl1 the Code Authox 

i ty the nA"2G z.nd aJ::2.ro -=:.., cf •:n:.::;h 'Fr.•r: ·8:;:s ·vho have been i n their em?loy 

duri ng thn :a:c.t y ·3::li to \TJ.i.Offi W1Yd:: : r: ,n 1. ·; s. r. C.:L .~ t0 be mG.J.e in the home . 

No ho m w() v•k r a n b l ) !3'\' (ju t t .--, (. ·~ y '- ,), SW O~i.-.: r 1Jhless su.ch ho.neworker is 

rcgi stor e wi ·Gh t l:; CO•:l <j ~u.~hc::: .< ~ y. 

Each ho:'leworlr9r· must r e e;is·i:-e r 1p j -Gh Jch3 Code Authcri tv the name and 

address of t }.lA :-r.£'.nuf ~.c ··x.:-er or c.c Vt·a~~ t oT :"c.:· w~w::n he or she is doing 

homework, imllled.i.e.talv 1.::pon b ei .:1~ e:t ·-1en su.ch homewo.~. k. 

SUB~HSS I ON nF' };~: ::;ro-N - ----·--- ----

Each mar..ufa< turer,. b e fore g i v).ng C' J · a bae; to be made to a homeworker, must f :.r ,'J : ubmi t. to t :J.e Cr .:.s J,u ~h0d:cv a ske t ci of the bag , 

showin the dc...:Jfil ,J.f'd a f1J;_::;_ d.e ::e:--~~i:~ n. uf the CJ."L•.an ·citv and. kinds of 

beads to be 1sr>J. '.tlsc· r :.ub .-II of :_e D8.F; :n tr '7 1ica~e. a lso an estimate of tne t .: ! ; I ~t L- ·e:3. o;r the .IY,mr.-1VI\E 1-:er to C:o the crochet beading 

on the bae; n::; S'J.tJ;d IJt cci. . r ... r; t;vE r 2rJ3~ c.l rV, t he Code D2.rec t ors may 

also r eouire tHai. a finis~1e d. s <:;;:nnl.e of the crochet beadlHg accomp;my the 

sketch. 

Uno.n l.l~ mission of the c.esign, L1E" r.ode Aut. hl')r i ty will d.etermine 

the p ieee we ; k p . ice to be '9C...icJ L'12. r.r~cmc·r1>:e : nJ.d a reg i str2 t ion number will be ass:;(:'"Gd. to s uch <ieBi g n . . 4 vi,'.] f9 c.:t ~L::er or contractor ag ree · 

to paY sue ~ ~) 0!118-:-(·; ke r the 9ri c~ Sf') e~= ·_.i ;, :. c.. tv the Co8..e .At.1.tho ri tv. 

A ffi 8.n'.lf Fl c t 'J ;'2:" sr g l l hE' "' 3 t he r i gh ~ t) ()l' , ' · s .. ·,, c- :o~r p !~ j_c 3 se i; by the eo de 

Authority ·.- 1.tich ._ n his ·'? in}.n ,·,_ ap J5 '-:t. ::. tl') •:3 u.r.:fr...i.c. I n case of "9 rotest s0 f i_::;_ r,.,_ , t!.P Ceo.<:: ~~u·ec.-'~c::.' s '.,v.i Jl t :·;· . . he time 1·er.n1 i re o. to make a 

finishe d bc-.r-· bv a hln:er.L,rkrr of av e~.::'..{;e c: ..; .:; :1. and abil .'~·' · 'The manuf!'lcturer af..rces t o n.c ceD~ t he r·es"J.lt a.s final of anv t est s o made . 

F2':Co::D :!'\J. hS ----------

Each manufacturer shall k~ eu a :-ecord of every job g iven out to the 

homeworker . These recr.rds she L t. b 8 in td. J1icate fo:rm, a:pprove d by the 

Code Aut ho1·itv. One c opy to ce r 3t,i. l (:ec. ·b, the ma.nufac turer, one gi-ven 

t o the ho ! TVor:~er, , nd a cop - · an c i..u th e CoC..c Ll1thori tv. This r eco:cd 

must conta.'. n i.hL" r•.;.c.e [tt!d ad -1.r.-'ss n.f +;ile :r ... (P'1ewo:dccr , the style number of 

he bag, the q_"J.anLi "t; r and the '9rice a n d the re is-:;ration number of the 

bag. 

Each manufacturer shAll k eep records of all a p.yments made to 

homewo r kers according to the uniforrr"' methnds n r . scri.bed. bv the Code 

Authoritv. 

"'** 

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CHILD LABO""l 

Each -record of vrork --iven to a homeworker must have stamued uno n . - it in red ink immediately above the point at which the homewo r ker is r equired to si gn for the work, the followine w0rds; " I agree not to per -

mit anv child under sixteen yea rs of age to ?erform any wo r k on hese 

goods. 11 

"'** 

CONTRACTORS 

Each manufacturer as far as is oracticab l e sh0uld not emplov contractors on crochet be i.lding . Tf, howGver, such contractors are employe d , 

the price fixed bv the Code Autho rity f or such homework is the or ice that 

must be oaid to the ho r!;ewo r ker bv the contractor, and no contractor shall 

withhold anv oart of the u rice fixed for such homework. 

"'*"' 

C011PLIAFCE 

The Code Directors, i~ order to maintain the minimum wage for homeworkers and to urevent the amo lov~e nt of child labor in the industry, will 

enforce strict corrroliance bv manu:t"actur erG -a~ d homework r::; wit h the cOdA 

for the industry. 
HOMEWORKEP.. 1 S GREt l'lE IT ... . 

A r eement between homeworker, ---- --------------------------- and the C0de .Authoritv Ladies 1 1

1andbag I ndustry. 

i agr ee t o oe rf()rm wo rk ()D •: he+; oc in~ on handbags in mv home 

in acc0rd2.11cc w: : che r ul es ~D ei .. 1.. t .:.. us established by the Code 

Auth()ri ty for t ne LBdi es I na.n<!b:-lg J.: :~·,_-; ':> GT Y. 

(1 I e a~ no chii d r sixt e en years of Rge shall at any 

t ine u e:d orra anY wo 1·k on h g0ods as a r e gi v en to ·-me to· ·be · 

(2) 

( 3) 

(4) 

(5) 

( 6) 

ma O.e in . rn.y nome. . . ~ . 

I e gree to register irornediatelv with the C()de Autho ritv the 

name of the mat1ufacturer or conc r tl.ct()r wh0 gives me · wo rk to be 

made in znv home . 

I a gree not to give back t o anr erso n or ue r sons any uortion 

0f t he p rice .::> a~d. to me fnr such honiework . 

I agr ee t o ·work 11() t ·mo r e t han for t y (40) hours in azrf. one week, 

and not mo r e .. than .. eight··- (8-) .}::10.:.117.S· ~~ ·. any oh~ d.·ay·. ' ' I o I • t 

I a-:; cee ~ t o a ccep t anv ha nd or crochet beading t ·o· -be made at 

horrc , unl.s -;:; tn3 p rice naid me- :f()r such work is the price fixed 

bv t he Co ti.e Au 1. !1.o ri tv. 

I agree not t o a.ccept anv homework from an r manufa cturer or contrac t or u.nl e ss su. h l'lAI•ui ·[ !.Ct :1·-:-er or c()n tra ctor has signed a comoli ance wi t h the Code Aut ho ri t- Y of the Ladies' rlandbag Industry. 

(7) I eg r ee tha t I will no t a c cep ·c &.."1V homework , should there be anv 

co nta _i0us disease in mv hnrue. 

( 8 ) I a.gr ee to 9errn i t an j nsoec t i. on of my horne at an'r time by an 

i nve st i gat()r f or the Co de Author:!.tv f or the Ladies' Handbag 

I ndu2 try for t he puruo so of d eter mining mv compliance with this 

agre ement. 

(9) The f ollowi ng ar e t ho pers() ns in my home who arb q~alified t o do 

WO i k un 0ro che t beading : 

DATE OF LAST 

~LATIO IP AGE WHERE BORN BIRTHDAY 

--------------------------------------------

Sig nature 

Address in full 

Telephone Number 
Mr. Leigh E. Ore 

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Ex·rr~ IT 

Pe rt ':' 

AsP i stan t Deuut y Ad~inis rator 

Corn;ne rc e 3uilding 

Washin~ton, D. C. 

Dea r :.rr . Or e : 

Dece~b r 19 1 193~ 

'7e El ..,..e i n r ecei"'l t of a couy of the memore ndurn submi tte0 o~.r 

i'lr. ?.osenz,·•e i g coverins our u l a n fo:r the control of home'vork . 17e 

have note0 carefully Mr. :'i.osenz'veig 1 s obj e ctions to t l1e "')lan 1 Pnd 

his re 0uest fo r further inf ~ation on some of the uoints c overed 

in the ulan. 

Ha nd-bea0 ing a nd crochet-be<'d ing a ·e the only home' or k ouerations uermi tted by our code . The r e rtre <tbout 3000 homenrorkers who 

perform this uerticular wo r k . Of thi s number, our inclustry emplo~rs 

about 24011 wor ke . s . 'r 1e se ·-.,.o rkers a.re scette r6d throughout s i x 

s t ates a ncl. about 200 co:1 :mnities. Hand- bead ing end croche t-beading 

e skilled onerPtions, n~ ca n only be nerformed after ~ore than 

a yea r "D r c•. ctice 1 most of the good ···orl::e rs are those who lea r ned to 

do this wor k in their nEl tive c oun tries and ,,ho never cUd this 'I'TO rk 

other tha n in their o~n homes. 

At the heRring of the PleR tL1g , Stitching Elnd 3onnaz <md -and 

Embroidery Code Aut:'10ri t y held in V!oshing ton on 1 ovemb er 20 1 membe:rs 

of thRt industry gave evi0ence tha t continuous adve rtising fo r hand 

a nd crochet bead e rs to . a r k in the facto r y resulted in only a few 

orkers apnlying . To be exa ct, t he number 1Els stPtcd as sixteen . 

This has b een tb.e same eXT)erience of merJbers of our :indus try ho 

a lso advertised f or crochet bead er to wo r k in the f Actory. 1lery 

few such workers El:onl ieil, t ile reason being tha t the w or:cers are so 

wi de l y seat tereel, thEl.t no f a ctory whereeve r es tabl is heel would be 

convenient to a ny cons i 0 er ble nunber of 1'1o rkc rs. 

The a verage ti::1e for tlle croche t beRding of fl bag takes from 

one to two hours for one b-"g , so thAt R.n a.vF'rAge ''70r ker on crochet 

bePdec bag s T) roduc es i n a n eight hour ·1E~y (~ bout four to s i x 'bRgs a 

day. The p roducti on ..,..eouireCl for An Ave rr-"'e manufRc ture r is a t 

least sixty doze~ a ~y Pn0 in the season Pbout 120 dozen a dElyl 

so tha t a nuf Rctu-r er !!TOuld have to emnloy 130 11o rkers on crochet 

beading a lone to nroduce 720 bRgs e day , <1nd in the seeson ~40 

worke rs to nroduce 1440 bags . :3es i des 1 l1e inus t emnlo~r other r1orkers 

who do cuttin€1 OT)erating Pnd fin ishing on the bags. There is not 

F'. mAnufacturer of be~d ed ba gs who ca n establish o f c> ct or y in any 

loca lity in the United StA.tes ~··: d nbt:.in 240 exnerienced croche t bead 

worke rs on handbags who are living ri t hin any convenient distance , 

willing to p e rform the wo r k in the f a ctory. The T)roduction of crochet bea0ed bags is so slo'"T thAt overheacl co. tR l'7ould be '1rohibitive if the work wRs ne rformed in the factory canFtble of housing a 

9811 
,, 

~ uffic i en t number of ,.,o rkers to "'l)rodrLce t he verc ge re11uired nrcdue tion of , s ing l e rnc,nufr"' c turer. T.1e unnroduc ti ve neriod in the 

inCiustry i s Fl·oout fo'l!.' !;ten ths in tlle yea.r . 

. ,o t of the beA.d ed bags ~.r e imn orted by retai 1 d_is tri bu to.rs 

"rho sell Cli r ect t o t!1e co sw:~er , f:;O thr~ t t he· American A·I').ufCl cturer 

i s not ev en u r ote c tecJ by a j0bber 1 s ;?rofi t. The beHded bA.g .industry in Amer ica h"ls not nevel o"'l)cd to ,,ny l a:-g:P ex_tent, bec u~e their 

ex i stenc e denends a l mos t entire l y in n roducing tynes of bag s that 

Rr e no t com"'l)e t itive ,.,.ith f ore i gn L1F1Ce styles, and just Cl s. soon 8S 

a n Ame rica n nroduced styl e h<1s ryrov en a g ood seller, it is sent 

abroac.l t o be copi ed a nd. t hen sol d in the United St8 tes .for less 

tha n the Amer ica n made b a.g . Conside ring t he unusual· condi tion.s exi s tin"' in t h i s industry, it i s ap1?C:\r ent thn. t if home· rork in the indus try ca pnot be maintained , it \'II70Ul<). mean the. COIW)le te. abandonment 

of the ' beadGd bag inclus t· y i n t he United Sta t es . 

The ryL n as subt;ti tted may not ,ems iT er every reouir.E?.me.nt of the 

_,J.gA Home~1o ~ Com.'Tiittee , but at l ee..s t ~t is .a n a ttemryt _to keel) the 

i ndustry exi s t ent e1 nrl to g i ve to the~e 3000 or more workers a living 

in a ccordance it~ the code ~eou reme nt . 

Answe r ing :•1r . "3-osenz;.,e i g 1 5\ obj e c ti ons srye cif ~ ca lly : An investiga ti on was m.t'l Cie of l1omew ork .in t he inrustry in accordance with 

Section 10 , Article V of tno Lad i es ' }:and:bag Code~ This investigati on was mc:-· c1e ,jointl y ·by t he CoCle Directors and the Co:n':li t tee apnoin t ed b y the Coi1.e Aut hori t y . T~1e · rel<ul t of this inves tig::> ti on is 

c ont ained i n a bri ef, , CO'I!J of whi ch .. ":<Tas su'jmi. t ted to the Administra ti on sor.1e tL~e <'go. 'rhe in,i-es tiga ti on i nclud ed the testif!1ony of 

rmnufPC t u r ers , COntra ctors Fln,l. home•vorkers . 0-Den hea ringg 1.'1Tere 

held , which vrere ;:) tterv1 qc-: lJ~ · t he Adr:J.j ni tr:·· ti n Hember c:nd Rll other 

f FJ c t or s in the indus try ; nc'i P J so "'l).,. i va te heA.ring s T.V i th home"Porkers 

and centre c tor s 1ftrho .!ave orF•.l < m1 .~,..i t t en evirlence . Tl1e Code Authori t y annroved. the r enort of t l: e c o ·.1 ti tte e a nd C:1Dnrov eo the ulan 

~hich 'as Dronosed by t he Code 'Ji r ctors to -c ontrol homework ancl 

abolish Cb.il0 l ;:1 b0r in the ho::-~e~ . "'he ori g ina l nlRn included the 

g~n tin ~ of P sne cia l hoo ework r 8te on ha nd-be<1 ding ~ crochetbef1ding , in consi de r P.ti on fo:r the nromise of the bead ed-bag manuf Rcturerr. to es <=~ li sh and !YlF' int C~ in . n agent or agenc y under the 

direction of t :1e Code Authority to f i x niece wo rk nrices so the 

hor.1e~o ker could e<=' r n t he ;nini mw:t•"age r a te of the code. This ulan 

as "'!)resen t ed a t a hee1 ri nr. he l (i_ in 11J'n shing t on on July 9, 1934 ,, at 

~hich Ass istFnt e'Y)Ut? Administr a tor Ja.rr n resided, but which was 

neve-r <'TI-;Jroved by the Adr.1i ni s t ra tion. Pend ing the r-tT)"'I)!.'Ova l of the 

ul? n , COr.1'lliance · i th the coo e •-ra.::e ra t es f or homework was difficult 

t o obtain and the Code Dir'e c tors di d bring cas es of non-comnliance 

to the N~ :tegion? l ]oard , but no s-=t t'isfa:ctory decisions we re ever 

obt<'i ned . 

The T) r esent nl·=> n doe s no t re l y unon a ny voluntary coonera tion 

by the mRnufPcturers. 'l.ealizing tha t the home"~P or er was entirely 

i thout t e protection of t he code be u~e they were emn loyed chiefly b y contr Pctor s , the Code Directors b~g n Hn investiga tion of the 

contra ctor, horne orker r e l a tions . They found in this the chief evil 

in the l1ome or k nrob e~:1 . I t 'l'la s customa ry for such con trHc tors to 

9811 
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retain frau 2:;7) t o L~05J of the ,Jr"ic<o ·cic iJy the r:1anufacturer for home-

'"nr'..:. I:::~ :~8~~:c, ror) : i-- ~h0lir;heC. t 1 .est 8or:t:ractors ;·rill become the real 

manuJ.·c: c'c'l:.re::s r: .c scc:.t terec". es t lle.;· ; l'e , it v1oul.G. oe :-o bsolu tely impossi 'ole to even locate their worke::cs , r uch les:; to set com·)liancc . 

'l'i1e J c. o .o.;er. pl~m 0ir.1:_, to f liDinate the .;e contractors, ond if 

we c c-·n c.o ;a le. ll ~ , '."·Ie reel the sucsess of the 1Jlen VTOllcl be enh an c eL. con::- i C.era'oly. VIe .:.re . s·t ·ri virg"tt c rnPke t ne r.ltnufact-L~rer L .• eal 

C:irectly ;-,l t~! t:te homev.rorker , and. t -.rou.···h re'""istration by both manu- ... ... :> ... .> • t. 

factu.rer G.ill ·che ho:Jewo:ckers , e cc-n ·-:..·.t int') effect our p l an to 

establish tl~e mii1imum V'IElges rat e :> of o'L:.r cocle for the homcw rkers. 

As a ""Jractical prool ern , the abolitiQn of homework in this inG.'L..S tr~r ·• Ol ... l( . . immec:i D telJ· c::eate F. s ·stem of oootleg::,i ng in hommi·0rlc , 

accom,_J2l1ieC. by- C~ ll ""Ghe vicioL1c anG. rnc:-:eteei"inb method::; corruYion to 

prohi'oitioi1. · .. ;I!om~orkers · vroulc . uuy tl1e:r ovm beac..s and c or.l-

.t> l ete t::e br.:;s , and s .ll at p rices thf't no manufacb.t rcr cuuld ueet. 

A11•:;Vte::·L1:_, ti1e specific objection rC?isul by I·.i r . Rosenzwe i g : The 

)iee e ·Jar~ ~Jri ces will be f.ixed on the follo vin~ bases---the nur::1bcr 

and 1d~1C:·. rn" :J e.:.cls the= t ·o in t o c: br f, e.re C:~etorminabl c . The b asic 

price i7i ll lie fixed. accor(int; to the m.:.mber of bcal' .. s <·nO. the kind of 

beal't;.. T:1 F. ,~i ce i s c c lc tla.t ed a c conf.ing to tl e n·L'lnb er of s trines 

of ueoc.'.s. Only in cose· of w1us~.tal <ie:1ign , a teet of ti:nc required 

t o fini:.:.t.!. ~1.:.c l1 a c1e~.;L n v1 ill be me.cle . '1~10 Code A,ltr.o:ri ty wi ll employ 

such 7o :t.·l ~er:~ or •vori .. ~ers on the ir prenises to c-c t uc1lly make t he sample 

for th 2 :'..1.l'lJos e of t estil1g t he ti!1e r equi red. The Co o.e :Director wi ll 

thell fL: the :)ri ce for that r> nrticulnr <.es i :;n. The CoC..e Director 

he._;_JiJens to ·.: e th()ro1: .)lly expe1·i encec in tl"~.e rrlC'lcin ~; of beacled bc ~s . 

r o me 1uf-- c·c-~·.re;r --rill have nn op _,o rtuni t ;y of hc-v in ~ his m•1n Porkers 

c o the tes lii::.1 ,. 

We acce ·')t the ;;u._ ;est ion maw.e by Lr. Elo;.;enzve ~ that t~:e homewor ~e r E'.S rrell c:s t "1e :·.ic.'n'Qfe cturer shall have the ri ;'1t to protest 

any price Get by the Co<ie Autl ori ty. In case of such protest , the 

Code :Uil ector:.> 'Jill c a•.tse to be n ade c>n ec tual test of the time reL~iret. to r:e· :u the article in qu.estio1·1. 

In the ''·?.tter 01 chilC:. lc= bor , the r eco rcl iil the A<.,Jninistration 

wi 11 sl1or: tha"'c in ana ther branch of our ir~clustry ( urai din : of l eP ther 

bag s) tlle Coc.e Dire ctors · . .,ere convinc ec. tlwt chilci la.ocr v1as being 

employee~. , e:u1C. ··ithout hesitation requested nnd. obtaineC:. and aG.ministrati ve ol~G.er a.boli s}:ing homev·ork in that brC~nch of the ir-'d.1 s try. If the 

:) oc.e Direr:tol~s f -.. me.. the t chi l d l abor is beinc; em~Jloyed i n the mal"inc; 

.Jf beaC.ec. br-_;s , L1ey wnul d. just as quickly acJ()lish homework in this 

branch oi the in0.ustry r;s they c.ici.. in the other branch. 

The. (.1£~t ter of contrActor~ ,,.ives u;; the most concern in this plan , \:::l .. 

nainly oeccX.fJe of the l egc· l s tatus of t he cant r[lctors. If the Code 

Directo rs 2.1·e informed that they have the l'i _,ht to ab')lish c0ntractors 

i.n the !JeaC'.eC:. b r ench oi the i nG.ustry , the problem of control of the 

;Nho l e ~)l an YJOl.J~cl. b e r~u ch more simple. In thL pl <T wo only sr.id: " as 

far as _uractica·bl e " contrr,ctors '•houlo. not be ern1Jloyed. The Code 

)i re cto:cs rJO'.'.lc'. ·rel ·cm:e e. le..;;<-:1 O)i · io,1 cover.1.r,,. tl is mptter of contractoT relr t i ons ,,,i th manufc:.ctl.rer < J <. homeworker. 

:7811 
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:nee:· o"l.:'r ··1 l an , tl e con trActor is require C:. t o ~: is r '.vi t h the 

Coue At t_lo r.t t;y the nru .. e of ev. ch home· •or er ern, l oyeG by hi 11 . '.Vl:e 

c o:::1tru .. to1 i·~ P.l s o r e cp.1.irec., to si t;n t h e hoLlev·orl·: c:g reemen t t h e s ame 

cs t he J0:ufact rer . To mee t t h e oojPc t i on of Mr . Ro se nz , we 

are wi l li:.- to Els ert c; n c- c."Lt. i t i ona l clc;-c•. r;e in t he ?-s reeme11t ;v} ich ~·· ill 

maL:e the .l;,luf r ctl.lrers Lirectly r e rpo:.si lll c f o :c wlJa.t t he c on t ractor 

1)ays t 1 e hom worker. This cl e.nse rti 1. 1 r e a.cJ. as f ol lo>Js : 

11 An:· J,"':11.,.fc. ct-t ..... r e r in t h e i n(ust J.'j' employi 11 · [' c on t n ·s tor 

o1· co:.t:c c:· ctom for work t o be _~ er or cl on he.nc·. uea in:; 

or cr o·che t- b ea<iin::., r,hCJ ll be re :,_;J on si.i)l e f or ·t h e iffe ce 

be t ·.reea t ·1e ) ri c e pai d 'b/ the contrec t or to rm ch hornevoL:el ['11 0.. t h e .~.) ri e t h at the 1orn Jor·~ :er i s enti tl e c'. to 

r e c e ive , accol' G.L lt; to the Co(.e A:.t h o1· i t y 1 s '>:cice :t'i z e d 

:fo r ~1.i. l1 ffi IO rk . II 

Je ·e}.3o c.CC ejJ t ·t he r3u._; e·-; t i oi'l cf ~iii r . . H.or:;en 7.we i r; t o chant;e t he 

req1: i reme! ~, :l o1· eep~ ::; 11 r ecorc·. fon 1s 11 so that it ·,:,i ll c> l s o include 

the O:i!t:cr.~tor . ·The c l :..'use 1"i l l be c·hc-n.;ec.· t o r ead : 

11 :L:c::::a .. 12DU:.. Fctu r or or con t raGto r sh ll k eep a r e corc. of 

eve:. y j ob :;i v e n out t o the home,,vorl:er., e tc. 11 

I n t he 1.1at t e r of coml.J li c.nc e , rr e r e a lize t c l o s e :mpervisi on 

of t he ho1 crTo l·l:er \Joule.. ue Cc i r:;:' icul t enc co stl y. Vi e . e .i;Jec t , n o"'vever, 

to c :;.:e:i.' Ci ...:e clos e sup ervi sian o·,; e 1· t h e m- nu f c:· c turer e nCl. 'l is c ont r e ctor 

anc t o ob t .: il. thei r s t r i ct aC: h e rence to t h e pL n . We have onl y 14 

ma:m f 2.c t_,_:ccr•-; i n t he i i.1dnst 17, a ll lo c;:: t e( in New Yo rl'..:. Ti1e r ecorC. 

o nns ;: ::ce bei:1, ~ J. e1JcHE.-C::. by ~.J:e Cot.e A.). L1ori t y nC::. wi ll be i!!a de unifo rn fol' ~1e l•i<m if r· c t u rer 8i1C, the con t r a c t or. 'J.'he Goc'. e . Au t hori t y 

' 'ill 1. ::.~_e fr ec~u ent :t e s t s of lt r~ e1:··o:r·ke rs compli a;1c e t hrou._:h v i si t s 

oy 01.1.l" i:1 _Jc ctorP i n the ho;ne s of the \'·;on:e:cs. 

·, e ..:l..ic no t p rovi dE:'. for c.1 mc:mufac t ue :c 1 s or c on trac t o r ' s agr eement 

as wel l as a homewor k .r s , "~ we f el t t~ 1, t ~1 e t.12lW.fF c ture r Pn c:·. the 

contractor ,·,e r e both i'1em )ers o:;:' t h e i nc..us t rv c.n( cont··a ctor were both 

'· 

memoe r ::> of ~ e i nc.ust ry rm d cou ld b e hel d fo r a vi ol a tion iJ::' t hey 

fai l ec'. t o comply 111 i t h < n y ]_) rovisic n of t !le p lan. I f it is t he o·1ir!ion 

of ; r . :::.ose::.1z ··ei r, thfl t sep ar;: t e e:;-;r eements ·;hou l cL be s i :;ne0. bJ the 

m<:muf2ct ,_r er D 8:1C. c ontra c t or·> , 1.r e sha l l :i."c:v e t hen c o s o. 

' ic a·,re~ t hc:- t t he pc.' rfl,:;l"a.:OJh in the home ·· ~o ·!:: er;J .?-~:-:; re ment p ert c9.i:!.1 i i . .; 

t o ".C ho 11'' of 'o rl,: c c.mno t lJ e 111c> <.: e e:r.fe cti v e. Y; e ha v e onl y h ope d. t. d · · 

insert.t:-.; t': ~· r ovis i cn t h e hone1··ro:d~c r · ·oulc.· f e e l r e 8 tl"PL 1ec. to li1nit 

cr h'Ju.:cs o.: 1:o1l . 1(no" i ·1g thPt sLe hac .~;ne0.. su ch e n c .•. ::;r e men t , J!1i _.:·.t 

have t" c e~i ·ec e:i'ec t . The f c t i f; t he i ,i(.ivi dual hO!tie.7or1cer, vth o is 

most i'1·ec! ·ei1tl J t he housev1i fe , rar el y cet s C'n op)o rtm1i t;l to dev ote nore 

t har. 8 .:ol..::.'s i .1 c C.< y t o he:,: howe·.to . 

J e ·.;:ve ctt !t1p t el, t o Dl s;ver- t h e obj e ct..i..o n s r r i nec ~J T 11I:c. Ro enzwei . 

i "i3 ·-1·10-fl1l'.1: • <-Gaii.'lst ou· ')lan fo r th e co l trol of !10mevork nn ~ 

the aboli ... ion of ch i lo. l a1:> or . :B,r .:; nk l y , Te S<'.Y t he t the p l an i s Pn 

expc ri · e~1'!; . Ho1.., ever, it i s i n the '~ of t he C0c'te Dire ctors :vho C'.:i.'€ 

e.A~)eri ·1ccc.". "':1 the i nc 1.stry f'n L 1 lOH t h e c..i fficul ti er; tha t must be 

9811 
- 32:3-

Slll"'rnol-:.l:tcl _ to : 1~~-::e t -·1e ~) Pll r:.rorl<.!"'Ole. ·~·;e f"ee- 1 tlll: t eveJ.·y ooJJor tlmi t;y-

;.;rou.h._ ·c -c_onec~ the (;oLE A.tho:.:i \,::, cL.o·l, ~1 th"' C;J c.e I:irectors to 

sive t i i r.; .·1.:- ::;: -r,ri c....l , ·ri th tl":e es urtilCE- t~1 C't i r' r1tcr n reasonc:>bl e 

time t~1 c F'l~ ls !o-:..mc t o be. ·cu.-y ol ~::au l , t l·e Code :i.., ir ecto:; wi ll so 

no i~y ~·ou C:l"!t-_ ~- ~1c.;.ll t hen b _,repe · ec.. to ;_:l.CCeJ.Jt r.nJ de cisi on of the 

hOJn e' '~o:c:: co.1!~1i tt ee :for the t ot: l ::>.~Joli ti on oi' hoi: e1·J r "!.c in the in(ust:cy. 

Very truly yours, 

C :CZ UTJ~o· .. I TY 

.Alvi : AS L.~..T S 1 HAFDBAG i})T_' ST Y 
- 024-

EX: T D 

P:u·t 3 

Jl.l.i. .C ::-C ".::i DE; 

ThC; ·"'o si ti·J!: of tLc · C"-~_e r' -b,.\- L d.us try in .Amc ricc. is one th:-1. t 

requires S"<)C cin. l c ::msi .:c r ·.t i.:m lJc c;\,,so its c 0mpc titi or: i s not vrith other 

.Ame ric •n m~;.do proc~uct , but ~· lmo st c: nti rely '.7ith :t ~~ ocl uct thc:.t is m.:.de 

in fo r oi gn countri es , without n:-Ld c..~· .. n t e t -:..r iff to p rote.ct the Arnoric:.n 

m.:-dc ·o roduct . 

The sr stcm of r.nkinc; b.::; '"'.coc::. b ·.es in J '-:_P,n , Belgi um , Cz e choslov::tl:ia 

"nd Fr '"~J ce , 1her ~.. most bo·'li.ed b ·'..f'S ".r c m:l..de , is to o well known to the 

indust:cy to c xrl·.i 1 in d.ct".il. The~r '"tre ;~1-:-cc:...: enti:co l y in the homos 'lnd 

tho Vlorl:::er~ o:-..~~:1 t }rrce t o fi v c cc.nt s ·· .r-~ hour . .A riff of 60% only 

:.clcl t ·.to to th:rec: cents ·'..n h our m".LLtt:, the tot· _l five to ei c;ht cents ;'..n 

' our , -,)lus '\noti rr 15 ; t o 20:~ f or fr c::.cht ".nt-. oth') r ov e rne '"'..C.. ch:-.r (;c s. 

I t is obvi ou s th .... t t'1c lJc'"'..(.ed b!..:_; ii.1custry c .:~1 not exi st u.."'lder the 

rr~sent w l c r r'.te est ".bli shcd by t 'l1c Cor:'.e ::~ c". ·will soon b e come extinct 

s ··n ~'..me ric .n I nc: us tl·,.r . At p r 2scnt , the wo:::l: is Li v c..n out to ho;71e 

vm rkers , t he ind.us try cm1) l oys .:.1.'tx0ut 7000 such vm r l:c r s , in a few hundred 

cities "'nG. vill:.;:_:e.., , i n t en C

1

.if£'e r e nt st· ..... tes . A visit t o m:tny of the 

homes of t hose.. '.lor~- rs v.r i l l be ·,~ · evi denc e t o wl1P.t the i ncome fr om this 

home w0 rk I.!O :.ns to those i··-..mi lie s , fr0C1uen tl" it i s the onl ~T source of < < 

income , in m".ny c :-- e s i t is !•C::.(lod. to the nc·-:. .~ or c.':'..:::·ni ngs of p9.rt i · ..... lly 

cm··Jloycd .1omoc·r s of t:1c f ;mil:- ·"..nd f.!.o c1~ the fc,·'r lUA-uri es they enjoy. 

i thout tl is ho1.1e wo r::, uY•ny of L·lcse f · .... _:milios ."auld. ·be found on the 

city c' ~rity ~~yroll . 

Evon eforo the o:Lfe ctive G.:' to of t l-10 Code , lv1r'.rch 26 , the prices 

1 :.lL f or hom~ no r }-: , evE: n thou[:)l :-'drn ttcd. ~- l ow , it wc..s r oe::.rdeC. as <:. 

blesni~ G to these ror~cc , who coulci not be e .. usc of f .:.:.mily or physic".l 

e".~ "~ns h . ~ t J. o hor. e to worl::: :i n :. f · ..... c t rny , even if such !. f '"'..ctory 

c oulc L est·'.: lis1ec: il': t .. 1c loc'.lit y of their :10mcs . 

The bE. ·.r~cd b ~; 'ltus tr~r h".s ro~Jo r<Jc t o thr C·Jc:.c Authority ct p l ".n 

th:.t VJill "£Gurl.) t'J t:10S v VIO:!.'J:.Jd' ,.~ T.:'.':e o f · ··:,.-:-.·c :.bout t·ro nd one h:- lf 

ti.,c" e r e ·tor t:1 n thJy 1.l.''.V b .... cn ,",b l o t o --: rn- ~'lerc to:=-or . :By this ]l':l.Il 

no r., .... nuf1.ctu1·or n~~/ ~:o "(v"nt·· {:} .. 'Jf t h\; son o of ~rt;':'.. ining pO\'re r 

b. ,n individu."tl hur1C vror~:er . ?l'le 1='l ·.n -rill b-3 su.;::- crvis ed ·oy the Code 

Aut nori ty , "..J1L cnforcm on t of the ·.;-,.,,. ::; r to f ?5 / .:1.~1 hour '='Ut undc r the 

co 11li · nco d i icio of t ·_ c Coc>. Di:i.· ~tors . Tl c lJ l :--.n rovi dc s th.:.t tho 

bo·.,./ed '\ rn".nuf cturcrs sl~·:.ll ".p1o i nt .n i rrr1

) ..... r t i ·l ··Jc rs on or ·-...gel1CY to 

be C:.osi:.l't'-''· ' .. ' t:1c oc.~... ·uthori ty , t o Ylh0!'1 ; .ll ;-.. r ticles given out to 

be u..., do b~ lone v·ol~l-:cr!? v1ill fi ··s t be submi t t oe. for t l c fixing of n piece 

\lb rk price :_)1· t -..i lJ. r c suJ.t in ". w·:.c_ o not l e ss t b.-'..n 25¢ ~?er hour to a 

nc'"'l"' ·.;or:: :. u:::· ''- er.:-..gc ".bility. ~1...'1. t f :-.iluxo o~:.. t he '>nrt of a rrnnuf~cturer 

9811 
to SLJ . .'"'r:i t .ny i tom t o J~:-'1~ 

COPT( li r-.ncc p:i_ t~l G~ \..- Code . 

ir1' . ..,_:::t i .l ' I, -• 

I f :·ou c cnsi d r- r t:Cl ·. t ·-, y•orl:or in oi ht 1..,1.il'!:' is on ly C"'.11rtb l c of 

f i nis1li:1{:: !n~-~'c bo -c·..:-(. l:. "' . ..:_ s t.1'.t rct ' il ~t :'·1 . 95 or ,; 9~::::; e" ch ,. :.nd t h:.t 

tJ.1c J~J-:.r,uf ctur :t ~'mst p rod.ucc ·.t l c :.st :.:. ivc f.~l.· s s of t l1csl,j b t.r:s in <m 

eic·ht hour r:.::.y t o me.int·'.i n ·':'.. volU!no of s· :. ~.-s suf1'i c i ont to s ~"'po rt h i s 

sellin.g ~.nd :.C.ministrt.tivc ovorho '.d , you will I'C".lizo :1~ t to p roduce 

720 Ul:.i t s l1~.: wo-Lcld h·'..vo to em]) l oy .240 such .-;o:rl>:ers. To hous e 240 workers 

r equL·os r.t J.c·.st ;~0 00') squ..:.r-2 f -c t Jf floo r sp."'.ce . Eve n if it wo re 

poss;_ ble to est"':olis!l ::--. .. L'.:nt :n ~-ny l oc::> li t y convenie nt t o .240 such 

workers , t~10 ".t t.enc· i 1c; ov cri:e".<: wouh~ make tt i rrr.!.) Ossible for t ho m"t.nuf ::.ctur c · t o c :)!npc tt- rri t:1 tht.; r.t~)o rt ct: -~ educt <.ncl :.t the s l.111oJ time p::ty 

t110 vmr-~:c:r r- three ti·· :c. s .:--..s uc~l ·l.s :s nai d f o r t:no im1 ortec:_ "t.rticle 

incluc' inc t he .'~ ~, . 

rhoJ B::;.· -~.eel. :B ·-:J I nrj_us t :c:· be.c 'USe o f t 1K ldnd r nr·. nn.ture :Jf t he COi-:1-

petiticn , -1C. for the r r;·:soii t}nt it is un ··rotect c0_ fron this competition , 

des e rve d :en (. r e quire. £ t 11:.t it i:le e;:r-.ilt oC: t- 1. conti nu·mco of home \!O r l: tm d 

:. €-r~. ed r:.te until such tir-:1e th· t~. tho eov c rruno nt gr "'.nt to t he indus tr~: incrc ".sed lJ rotoct ion tl1roU[;h ::m incr- ".se i n t he t'l.riff 8n be,..,_G.e d 

bugs . 

An O..PlJlic:-'.tion for such r e l i ef h:;.s b een mud , in the mo.:mtime , 

the se 7000 vmrl.:ors must ·co n r ovi d.c cl for -by ~~ n indus try vrho is trying to 

io its }>::'.rt to m!':e it ·1ossible for Ar:leric n worJ:.::c::ce to do this wo rl:. 

811 
- 326-

E.t"'<!Ul3 IT 0 

I 

C 0 IJ T 3 1T T S 

Le tte r of Transmittal 

Renort of Committee on Homework 

Majority Report 

Minority Renort 

Re·o ol~t of firm of Kaplo.n c?c Gordon 

Rel1o rt of Mee ting of Iml)orter:J 

Rc~o rt of Contra ctors 

Administration Membe r ling on Labels 

? ret ests against Rulin :; on La.bels 

Requests fo r Officia l Ruling on Labels 

Notice of Stay from Pleating , Stitching & Eoi.1naz & F.and Embroide!"'J Code 

Re commenda tion f Code Director 

9811 
3~

·.a.y 14, 19 34 

Dear r~iambe r: 

I am enc lo ~1b he r e·:;i t l1 fl. co_•y of t he resobJ.tis>!1 ·Je.sscd by 

t l:e manufacture r s of be:.ded ·o:> gs at a r1Cctinb 11cld m Jia;}' 7 . 

Tne r e "\7ere f ourt een members J:.:esen t, s even vot ed i:i1 f£:·vo o 

t he r esolu tion, f ou r against , ee ~ot voting. 

I ao a lso enclo si ng a coTj cf t l1c r:~ nori t ' re·(.,ort f iled by 

conce rns who a r e mostly iu "' o:..~t rs of ·IJcadcd bags a~1d elso a 

co JY of an indi vi due.l ~) or t from e. manuf<:1 cturer of tnc bcaclcd 

bag L1dus t ry . 

The se r e")orts a r e sent fo r t he ·)ur:Josc of familiarizing you 

with t ile :.)a rticu l ar ) r obl er.1s of t his d.i v · sion of t he industry . 

KL1dly st udy t hese re s :=ts it is ex;ected t hat t r.e r esoluti on 

will b e -_; r esent ed a t t he next :nee tin[ of tne Code Aut ~1o ri ty . 

9811 

Ver;/ t r u l :,r yours, 

Code Directo r 

Le.cl_i es ' Ee.~1dba; I nc: us try 
·-328-

The beaded bag n1anufacturers, a. division of the Ledies 1 Handbe.g 

Industry , is now ~Je D.. tint; under tne Code of Fair ConrJetitim1 for 

the Industry. There are about 23 man~u~cturers in this beaded bag 

g rou:.? em,?loying about :>000 1::orl:ers who do hand- beading_, ha~d-:-cr~c het

ing or hand- emb roidering , a nd the wo:dc incide::1tal to t11e f1n1sh1nE; 

of a bag . 

Of the tote.l n·,_unbe r of or~ce rs employed in the industry not mo re 

than 500 a re emp loyed L.1 t he f a ctories, the other 4500 are em~'Jloyed in 

the homes to whom orl"~ is given to be rro.de u:c into bags or :~a rts of bags. 

This homework being :)ermi tted under Section 10 of Article V of the 

Code. The. Code, however, provides that such homev-rorkers shall be 

paid a.t the same r a te as factory worke rs---35¢ per hour. 

The beaded be.g manufacturers find the g rea t est compet ition from 

foreign made beaded be.g s, i mp orted chiefly from tile countries of 

Eelgillin, France and Czechoslovakia. In the se countries .the n orkers 

who do this worl- also 'do it in t he homes, e.nd e.re paid on a.n ave r age 

of five cents an hour. The duty on the se beaded bags i n now 0~ , to 

which may be added frei;;ht, i ;.1surance and other char€:,es amo~ting to 

another 10% so that "ueaded bag's .i n these countri es a r e p roduced a.t 

a rate equivalent to ~ cen ts an hour. It is obvious f rom the very 

outset that American manufacturers , me.k ing the same or si mila r 

beaded bags operatinc:; uncler t he Code of the Industry and. payi ng at the 

rate of 35¢ an hour cannot long · survive . 

After a tria l of six week s, these beaded bag !'!12.n~.fac tu!ers are 

convinced t hat. it is futile to try to meet this corrr:_Je ti tion , and t hat 

the industry must be abandoned as far as trying to make such bags in 

the United States under the lJresont vm~e !Jrovisi o;.1s of the Ladies t 

Handbag I ndustry Code. Re t a ile rs and Jobbers in the United Sta tes 

finding that the p roc.ucts of American manufactur e rs are no t coml}ar abel 

in value to foreign made beaded bags have ceased to buy ~~erican made 

bags and are now im Jorting 'the ir own beaded bags directly from the 

m..:=tnufacturers L1 the foreign co·..mtries mentioned . These direct j:mp orta tions because of their greate r va.lues, have destroyed the American 

market for t he American bead- ba.g manufa cture rs. 

The worke rs emp loyed by the beaded bag industry, who numoer more 

than 5000 , find themselve s unabl e to obtain t h is vm rk, and at a time 

when t he demand for bended bags is gree.ter t l1an normal. These workers 

because o~ t he ir ii1ab ili t y to work a~' from home clepend lart;ely ~Jon 

such earn1ng s a.s the;y ce.n obt02 i n at homework:-- The ir :ab i l ity to ·add to 

t he insuffici ent ea rniilt;s of oth~r members of their f amily, < did a gree.t 

deal to make these ~J eO'') le ind.elJ 8i1dent of lJUbli c aid . U~1til t he Code 

for the i ndus try became c ffe ct'i. ye, t hese ~vorke rs we i·e being paid a t a 

r a te far belor: t he ··Jr esent 3'J¢ lJe r hour. B-u.t the rate of wnge wa s 

forced U..J on t hem throU;;h corn:_0e ti tion vvi th t he foreign made goods. 

To ur eser ve he beaded bag industry in the United St ates, and to furnish 

emuloyment to these 5000 wo ~e rs who denend uu on this industry for a 

large ortion of their livelihood , it is urgent thnt the manufacturers in 

the industry be gr anted the r elief they ask f or in this uetition. 

9811 
1, - RESOLVW that the Tariff Imoorts Di~ i sion be and is hereby 

neti tion d to increase the dut y rm beadad bags, as now defined i n t he Act from 

6oe~ · to BO% and that such increase b'3 come ef ectiY"' at t he earlie st uossible 

date. 

2. - R~SOLVED that Dending ~e action of the Tariff Impor s Division 

in granting the relief as 1ced for, that the Code Authority Ladi es' Hancibag 

Industry b <:! and· is hereby ueti tioned to grant a minimum rate of 25rt an hour 

to all beaded bag manufacturer's ·for work don ~ in t he home of the wor 1(e rs, mhen 

such homewor'· is uermitt ed by the Code. 

The p resent minimum rate of 35d- u er hour we are sure is r e sulting in 

non-comuliance with this urovision of the Code, becaus e it is imoossibl e to 

race this homewo rk into the homes of a t housand wor~ rs scattered in the 

rural districts of at l~ st ten stat'3 s. 

The bead-bag m~nufacturers r ealize that even with a r a te of 25t Der hour 

hey can only hope to comDete on some i ems , '1/!Thil e with othe r it ems it vrould 

still be impossible to me et the fo ei n values; however, the industry fe els 

certai~ that comoliance with the labor urorisions of the Code can be made 

more effective when the manufacturers of beaded ba.gs r ealize that they are not 

threatened with total eztinction. Furthermore , the manufactur ers in order to 

obtain strict comnliance .of the Code 1 -pl edee thems elve s to establish and 

maintain an im·oa rtial ne rson or agency to be designated by the Code Authority 

to whom all articles given out to be made by hom work ~s will be submitted 

for the fi xing of a uiece worl..: urice that will result in a wage to an average 

worker of 25t uer hour. Failure on the part of a ~anufactur r to submit an 

item to the imuartial uerson or ~ency will be considered non-comuliance with 

the Code. 

All wor1<": given out to be made in the hom'-" s of worh:ers will be controlled 

by the imuartial uerson ~r a~ent through rul e s and r egulations to be established 

by the members of the beaded bag ~rouu . 

The beaded bag manufacturers reaue st the Code Authority to consider this 

vital -problem for the industry and that it rant th ~ ez em tion it asks for 

until such time as r elief is ~iven through an increase in the duty of beaded 

bags. 

Hay 23 , 1934 

~ode Authority Ladi es t Handba~ Industry : 

The undersigned, imuort ers of beaded bags, have ca r efullv studi ed he 

~on+:.ents of the urouosed uetitior to b e submit t ed bv ·rou on behalf of he beaded 

)ag manufacturers to the ?resident of the Uni ed State s, under t he urovisi ons f 

~he Nat · onal Industrial R'3 co,rery Aclministr tion~ Title I, Se c ion 3e , and find 

>tatements contained the rein with resuect to the c0nditions of the industry in 

~he United States; the conditions stated as e·:istent abroad; to the conditi ons 

mrrounding the imuortation of bead·'=> d bae;s, wr.ich ar ~ mat erially erroneous, and 

;he true facts do ot justifv an auulication to the Pr P-sident of t he United 

tates or the granting of suet aunl.ication by the Pr8sident of he ni t ed Sta e • 

1811 
We r eaue st that as a member o·i the Cod:e of Fair Cof'l-oeti tio:., bv which 

a-o lication is sent d, that re be advised of all cnnferences, hearings, 

othor ste-os ta1~ en with any officials r elative thereto. 

-qesuectfully, 

Gbld Seal lm-oorters, Inc. 

(signed) J~ J. Newman, Pr s. 

Maz Ta~nenbaum Co. 

(signed) Ha;: Tannenbaum 

Harry Roth 

(sign~d) · Harry Roth 

Marvel Ba~ Co. · · 

(si~ned) Adol-oh Sch cter 

.itEPORT RECEI 'R:D FROM KAPLAN f:· GORTION' CORP. · · · I , •. ., 

.. May ll• · 1934 

Code Authority Ladies' Handbag Indust ry 

303 Fifth Avenue 

-ew York City 

Gentlemen : 

I , ish to call. y....,ur attention· to a resol1~ tion -oass·ed u-oon by the member: 

of the beaded bag division which no doubt will be offered· for your considera· 

and aT)-oroval , and I would like to make the following corrections. 

The r esnlution as it no ~ stands may be inter.-or eted that articles ~iven 

ou to home~o ke rs -orior to submitting such articl e s to the im-oartial person 

or ~art y shall constitute n-co~-olianc e of the code. This would constitute 

a challenge to the honesty_ and ability of the manufacturers in our beaded ba1 

division and I must , the r efore, most urgently -o rot est against such unwarrant. 

slur on our members, however unintentional. 

I ther efore urge you to include in this r 8solution P. statement that all 

i ems shall be suhmi ted to the im-oartial ·-oerson or -r:Jar.ty f or ·a-ouroval e-nd m' 

be submi t ed th r·~ Defor e or after the work h£~ s be en e;'i ve n out t n the homewor ker s . This stctement would permit the im-oartial -oe rson or agency to ouer · 

mo r e effici ently for the benefi~ of the · ntir e industry es otherwise it will 

wi thou a doubt , at' the heiP'.,ht of t.he s eason, -oe.raly ze· our indus try on accou ; 

of the inroossibility to -oasc u-oon all sam-ol es which 111Til.l be submitted for ap~r~ val , within short time . 

I am cer ain that no human being , no matt er how ez-oerienced he · may be i 

our industr y, can estimate the time r equir ed to manufactur e a beaded bag wit>U 

ac ually timing t.he ma 1dng of it, unl ess such estimate of time be entirely 

arbi r ar y and discriminating in many instances. 

9811 
At l east ·~000 hours , I be li eve> , would b e r e lliUir ed to dete!"tline t he t ime 

necessary to · manufacture the· articles vu ich would. b e submitted to the irnnartiaJ. ue rson or agency . These 4:000 hours of wor ,r wi 1.1 have o be ue rformed 

within ne montt , the for ~ requiring t, he emuloyment of 25 uersnns at the 

rate of a forty hour ree 1c, 

25 crochet bead rs would r eauir e a ver lar.o-e suace and ca nnot be h[ld 

without tpkine these worKers away from heir a ctive worK. Ne ithe r a r e the s e 

25 croc!let bec-.ders a vc>ile.bl e as insi 0e "?TOr'·e rs c- s this i ndus t ry i s urim rilv a 

1omewo ~ industry• 

I also want to call to your at ntion that th e r esolutinn should include 

:he stat 0ment that the imuartial uerson or agency which is to be de signa ted 

)y the Code Authori ty shall be with the auuroval of the memb 8r s of the beaded 

>ag division , as onl y such uerson who would r ece ive this apurova l could ef-

:icientl v carry out the work r equired , 

Regcrding the i ncr ease in tariff , I wish to offer for ynur aunroval t he 

'ollowing sug ion: namely, that we etition the gover nment to incr ease 

;he duty t o the maY-irnum uermi tt ed by l 8w only on articl e s comul.e t el:Y f inished , 

lnd to maintain t he nresent dut y on article s unfinished and to lower t he duty 

m loose or strung oeads. 

This would uositivel y be to the be st inter e st of our entire industr y , 

,articularly to the 1jll1orkers, as t he increas e in dut y on finished a r t icl es 

ould force t he manufactur ers to finish +he articl e s in t he Unit ed St a t e s , 

hereby creating work for handsewe r s !nhich a r e er si 1.y availabl e and of which 

her e are many unem'Jloyed. It would also urevent deuartment stores from 

urci1asing comoletely finished a r ticl e s ab r oad , th y -ceeu in ~ so ma ny 

mericen workers out of or , and would force the imuorters to estc-blish 

inishing departments which would engage additional workers. 

The rn[-).in tenance of the uresent r ate of dut y on unfinished article s would 

e a distinct benefit tn our industry due to t he f a ct tha t the amnunt of 

rochet b eaders availPble in this country a r e ent irely t oo few to b e abl e to 

ake the amount of bags r equired. The industry could emuloy all the workers 

vailabl e on better p ri ced bAgs , uA r ticularly with t he r~ntin g OT t he 25~ 

er hou:.:- r ate for hnmeworl{ and if and uh.:m the gov ernment should lower t he r e-t e 

n beads and Japanes e imitation uearls. 

The requested increase in duty as it no ~ auoears in the r esolution is 

1sitivel y useless and of no benefit tn our industr y . On t he contrary, it 

)Uld be de triment al. First , t he increas e in entir ely oo little to bene.fit 

1e industry and s econd , should the incr eas e be mu ch hi e;her on all a r t i cl e s, 

lni.shed and unfinished, i t would ruin the industr;r on account of he high 

·:-ice of the arti cl es as consumers ultima tely would f ind ot h er i t erns to buy 

·~ lower urices. 

The suge estions I have offered would b enefit the wor~e rs , busine ss men , 

the cor..sumers, ther efore the entire industry. 
- 332-

As a meT"!be r of t he corn'littee on horr1PVTO r 1

r, I wish 'I 

tq. tli.an'k .Mr . Hi ttenthal 

for he int ~T'?S h e he S shn -n us by dra.~11i n-g Uv the r e s0l ut irm er.d I ?TO cure 

thet it 1"1C) s uct h ls :.utention to include or e}:cl ud.e any"Gni ~ .. wnie~ rn~y _be .of 

• de r ir1ent to o ,r iH Ul.:>tr y . ,' I 

AF-ain 0 ;a7 I uTP'P Y""U to Pi '.T9 ver·y .s~e ·ll c onsideration to my sug?estio 

I would b e' v c:ry g icc. · , Q <lu'JGP.r u_efor e ;rv·J. :o ·dv:e yi")U a(?..q:ltior ... al data .. J.f .. you 

so desire . I am cor·ta.i n it 'i< O,J.ld ·be t 0 h3 int e.rest "f the industry. 

(signed) 

Re spe c.t f.ully yours, 

J .. Ka0lan •• 0 • 

Kaoian & Gordon Corp . " . ' 

, ·: 

Meetin of th e Bead.ed Bag Imoorters ncl d in the office pf the Code Authority, 

May 15, at 00 A,. M. 

Pr e s ent: 

Mr . S. Stt·inl r t 

Mr. ~ Roth ~~ir, ·J ·. t-T;v.r•.qn· 

Mr . T<' rn·" n':>.:tu'TI· 

Mro A. Schenker 

• I 

The r e que st for t his ec c1n~ '\"U S for the uur-dos e ""f futin~ statements 

'!lade in the net i tion ne.sse d by t he :Sea<led. :Sf'lg lFamifactur.ers at their meeting 

on May ? . 

They asked to have t ne following st a1'.eiJJents co.rr,ected .stating that ther< 

ar e not 25 rna~1f actu rs of b eaded s~ ~Qt at the very most 15, the ~ther 

10 are imoor c rs. . · 

They p.l 3o state thElt t he 5000 wo:-1..:--e:rr: should no.t . be rnore t han 1000, · 

claiming that there is e. le.l'g e du"'l i c?.tion of the $arne worl<:ers who wnrk for 

more than one manufccture r. 

They also claiM that the duty is n ot a lway!:? 6Q%, _ 

come in at 90%'. A s tatement vrras rnad e tha t · 70~ of tpe 

90% du t y . .l 

thEat a ~reat many bags 

imoo;rt s f~om France pa~ 

The commi ttee qut3stio d t .l':} Ac curacy of . t he ·stAtemE?nt that 5rt an hour 

is "Oaid to or'k:,n ·s 0n eadcd b aRs i n l orGi gn co'Ull ~i s. Also to the policy ' 

fi gur j ng l Of C'XO C'11::>e in bringing in be 3. od bags·· They claim ~ that it never Cl 1 

l ess than O·'' 

. The co · t,te'e 0lairns hat imDorts that were ou.a:ht i'n last year at a ct1 

of 1a .so eec:1: laiQ. :lo wn ~ ndw cos \~ .. 9'7 . Also thnt the im'oortation of bead 

bags has d~c ad 5C% ithin the nast year. 

9811 
- 333-

A request w2s made that we obtain tnfo rmatior fr om Mr. Homeyer of the 

~ustoms Hous e regarding the era~e r te of duty and he uercen'"a e of de cline 

)n imnorts of beaded bags. 

The co~mittee nromis ed to submit their brief in sunnort of the ir on-

)Osition to the netition of the Beaded Bag Manufacturers. 

1r. A. Mittenthal 

~ode Dire ctor 

adies' Handbag Industry 

:ew York, N. Y. 

tear Sir: 

May 19, 1934 

Re:9lying to your let .er of May 14th , beg to sa·, I distributed for 1 . I. 

·aid Co., 14 E. 33rd St. N. Y. Citv and the Imno rt Bag & Bead Corn ., 35 W. 

th St . N. Y. City, but hc?..v e r e ceived nn wor k since the Ladies ' Handbag Code 

ecame effective . 

Prior to the Code·, I r e ceived f rom Flbout c!; 3 to $6 ner dozen for s eed and 

·ooden bags end my ~ross nrofit r a nged from about 60t to $1 ner doz en . 

I do not know the average wage my ad rs ear ne~ ner hour becaus e I do 

.ot know how long it takes to make a ba,e: . 

It is hard to sav ho~ many hours a beader wo r ks in a home . A married 

·oman might only bead two hours a day whe r eas a sin e irl mi ht work siz. 

I never had any wor, ... d.0ne b:v children . 

In my opinion i t would be a great hardshin to b eaders if homework wor e 

rohibi ted entirely. 

I do not have any su~~estion to make as to a better me thod for handling 

omework that would give the homeworkers the wage they are entitled to r e ceive 

nder the Code . 

Thanks for takin~ this mat t er un with me by ma il. 

Yours ve ry truly , 

~I ll 
Dear Sir: 

I take pl easure in ~ivin you my an .lysis of t he home bag industry---

My on1.n1on and information is bas ed 6n 3 years experience a~ a contractor and 

desi ~ ori gina t or. . . 

The cont r a ctor gives a money gu3-an bee corresnonding to the value of the 

mate r i el he tai<es avay . He re~ :; t~~a beaC:.a , and sometimec the thread and 

delivers the finishe d ba.o,;s at ·0he fac..: tc·: y., He nays his t ran F;e>(Jrtation both 

ways, be sides the time r equired to go and come bac~ f rom the factory. 

The contractor distributes tho beads and thr ead from his nlace to the 

homework..3 !'s , and mFmy times has '\jo ~a h t hem how to mal<e new models. Hereceives t he f inished bags, insneGt u them and brin s t hem to the factory, where 

he doe s not r ece ive always the n~yM nt fo r the bags delivered, in snite of 

the fact ibc.i he nc...ys the hom wor -c er un o1"1 receipt of the finiohed bag:S• · The 

eontra ctor o.ss'lme 3 Dll the ris Ks in -che di::;t.r-ibution of the ma.terial to the 

home~ l<c rs and many tim"':s runs t visit ;the home · df the wo;rl<ers to obtain the 

r eturn of t h8 ·bags and ·some·c ime sr if h e does· .hot u.se ;;o·od- juO.g;nent i,n. e;iving 

the material t o the h')meworl::er he i s c..:a i.le.d ·upon to nay fpr· the. ma.teri.aJ: 

not returned~ a t f r ctory fancy ur-ic es ... 

"Below is a sta·c·ement .- shovr1ng a s uud.y of l abor cost:. o,f ba-go, per doz.: 

TYPE 

()F 

]AG 

Ziuoer 

Envelope 

Zi uer 

'Envelone 

Zinner 

Env lope 

Zinner 

Env: lo:2e 

Q,UAN J:I TY 

OF BE-wS 

BOO 

950 

12!50 

1550 

1850 

2000 

2300 

2600 

A r~::t.;\ G'E P.'UD TO PAID BY FACTORY 

.. TI L~ ( each ) 10 "S VOK~"8R , TO CO r:rtACrrO · 

1 hrn1T g-l.tf. lOJ, 

l i__hOU:rS ·101 12of ·- ------ -

~ hours 23 -1 13¢ '28· to 30-t -- - - --- -

3 hours .-.. - I __ '- ·~?~; · 28 to 30./ 

from 3t o4 hr s. 20b 3~rt 

from 3to4~ hrs. 30 to 32¢ 110¢ 

from 5to6 hrz. 40 to 45¢ 50 to 55d 

from 6to7 hrs . - - -1:5 to 50t 55 to 60tt 

CO!ITSUMER 

PRICES 

. $1.00 

1.00 

1.95 

1.95 

2.95 

2.95 

4.95 

4.95 

I do no t gi re , ou t he cost of the beads , althou~h I understand that the 

aver age l anded cos ·. i n U- S~A~ for wbi·ce beads (1000 beads) is from 24 to 26 

cent s, and. colors f ro;r1 18 t o 22 cent3o 

The t o bcs ll ~ are the aa .OO line and ¢1.95 bags. 

The code es abli sh~ s 35rt n er hou!' f or this t~~e of wo rk. To enforce thi 

wa e means that the urice to be -oa 5.d to t he worker, would have to b e increase 

about four time s, and the dollc:tr lin'3 would ha -re to be sold $1.50 to the 

onsumer and 1 . 95 line would have to b e sold ab out $2 .50. Will the constlme! 

buy at t ha t urice? 

9811 
~e cannot l ee.islat e suuuly and demand. We cannot ere te demand by 1 

~ caaEo'- le islate ort •.'1ages when eoule ne ed to obtain work- even at low 

ages. Whil e distribut in~ wo , I have often gi en beads to mqn who er e 

he so-called ll ..,.;h i te collar" cl ss. I am myself in t his s arving cnnractor bu siness because I cannot ~et a dec ent job, and I am qui e hapuy 

nit, as it gives me the ouunrtunitv. to earn somethi n for my family . 

Lhe manufa ctur er f ace s twn di em~as : to close his f 8ctory or ic~ the 

aw, if the l a means higher wBge s, which m~ e s the me rchandise cost higher 

nd thus becomes not saleable. The wor 1cer is aui e wi, lin to be vic imized 

y he manufacturer and si n any receiut for hi gh wa es which he did not 

eceive, urovided he gets some thing which will give hi m bread, shelter and 

orne clothing : or his family~ A quarter loa f of br ead is better than none 

~gardless of wages established by l <'1.w. 

A homeworker, who with the assi stance of other members of his family 

an ave r age 6 hour s a day's work, would be satisfied to earn 20 cents uer 

our or $1.20 uer day. 20 c ents an hour would malce -pos~ibl e for the bag 

ndustry to live. 

It is well known to you that the homewo ~e rsl ~ages in ur oue , Asia , 

atin A'Tierica, etc. are as low as the equivalent of :l'ro'!1 rm e to t n cents 

er hour and naturally bags can be imuorted from Cz choslova~ia in suite of 

he high tariff, if the manufac tur er her e uays 35~ uer hour , ur ovided , of 

0urse, that the consumer will buy bags if instead of b ein . sold at 1.00 are 

old at $1.50. Tne increas e of i muorts f r om J auan in su ite of our low dollar 

nd high tariff , demonstrated that · e a r e vulnerable as soon as wages en er 

nto a cost, and the' same thin ~ill an-oly with Eur oue in r ega rd to bags. 

I honestly beli eve that ~ages of 20 to 25¢ pe r hour would be fair and 

ould not ~il"L the bag industry, 

Your s truly, 

I am a homeworker on beaded bags working for one of he large st firms 

n the in0ustry! At your reque st I have called to give you the information 

sked for on beaded homework. 

My wife and self just finished. 48 dozen of beaded bags. We wo rl<ed 2~ 

ours a day each -from the hours of 7:00A.M. to 10 :00 r. M., only al<ing 

ut time for meals. We finished these 48 dozen bags' in '"'n" wee'<, wor~ine,; a to al 

f 75 hours each during the eek , and W"'- e rned ~22 for the comulete job , or 

11 each. We consider ourselves fast workers. 

We are paid 4~ a ni qce to se a r ound a comolete beaded bag , i ns ert and 

ew in linings, and sew on the button fast eners. 

311 
- 336- . ~ 

Fay 18, 1934 

REGA..tiHNG T!•E US~ OF ~ .R.A. LABELS HI. :BEADED 

RAJ DBAGS PARTLY IMPORT"@ AND FINJ SHED ~ THE 

UN I TED AT S. 

Gentl emen: 

In orde r that an official decision may be had fr0m the Administration 

r egarding our right tn issue such_labels, we h~v e filed the r~quired urntes 

to obtain such official ruling. In the meantime , the Code. Authority will 

issue labels .to beaded ba g manufacturers for b~s partly imuorted and finis !• 

in t he United Stat e s. 

Mr. A. Mittenthal 

.Very truly_ yours, . 

Code Director 

·Ladi e s' Handbag. Ind.us~ry 

. . .. ------------·-· 

~E ay 19, _1934 

. 1 . 

Code Authori ~r Ladies t Handbag Industry 

303 Fifth Avenue 

New York, N. Y. · 

De ar Sir: 

We a r e in r e cei-qt of a lett er dated May 18th whereby it is stated thet 

t he Co de Authority will issue abels to headed bag manufacturers for bags 

u a rtly imp ort ed and finishe d in the United States • 

• 

We b eli ev e this is an injustice to the American manufacturers of beade 

bags. You a sk us to -p ay a livin~ wage to ~11erice.n vr:Jrl<:ers. You · as'!( us to 

limit our hours of wotl(. In ·all fairne ss to the American worl(ers, we belive 

t hat t he N. R. A. labels sh ould only b e s ewed in bags .that are made in Ameic 

Ther e are a few imuorters of beaded bags who through subterfuge are 

trying to hav e labels sewed in beaded bags that are imported from Europe, 

on a u rete}:t t ha t they are sewing the linin s in t'he bags ,in this c·ountry. 

beaded b ag plate that is imuort e d from Europe is really the whole article. 

lining s are only a small fraction of the labor or construction of the bag. 

do not b eli ev e tha t any fair minded authority wi 1.1 n ermi t labels to be sevd i 

beaded bags or any other article that is imn orted frorn the other side. WE 

earnestly ask you to give this rnatter your uromnt attention. 

Thanl.d ng you, we ar e , 

Very truly yours . 

9811 
Mr. Pears n 

45 Broa dway 

1;ew Yor·- City 

Dear Sir: 

.. ay 19 , 1934 

~nclos d pl ease find a copv of a n tice r ece i ved this mo r nin f r om he 

Code Au t h ority, pe~tainine t o ·rnA l abels to be e ed into beaded t a s , the 

ma 1dn.c;s of wh ich are uartly import ed e nd par t l r f i nished in h i s c ountry. 

vi n~ SDent a life time in t he b eaded ~ bu siness, both as an i moorter 

and as a manufacturer, I cannot s ee t :t e justice i n a r uling of thi s 1

d nd , 

since the imuort part of a bag is ~ whe r eas the fini she d part that. has to 

be done in this country is not mo re t ha n . 

You can therefore r eadily s ee that t o cont i nue unde r the in~ of the 

Code AutL1 ori ty and still maintain the me ani n~ t ha t t he NRA stands for, would 

be nn absolute imno sibilit . 

~· I suggest to you be fo Te you allow t t i s .rulint; t o go int o effect t hat 

you will give the domestic bead bag manufactur ers a eari n~ . 

Trusting to hear from y0u, we r emain, 

Ve r y t ruly yours , 

-------------- -- - --- ----- - -- ----- -- - - - ------ --- ---= 

r. Mitt enthal 

Code Authority Ladies' Ha ba~ Innustry 

303 Fifth Av enue 

ew York City 

Mittentha l: 

Ma y 19 , 1934 

We have a letter from y1u da.t ed Ma v 18th regardi ng the NRA l a"b els bein 

int o bags that are 3/4 manufa ctured i n ~urope . 

We mu st a sl< for your i m ediat e a ssis a'1ce in ho <in~ h i s ac t ion a s l abor 

is uaid at t he rate of from 2J to 5rt an hour in parts of Euruue su ch a s :B elgium , 

Czechoslo•rakia anc1 }'ranee . 

If l abels are permitted t o b e u t i nt1 ba~s hat ~ 3/4 manufactured in 

~uroue under the lowest r a t e of wa~e s, we as AMe rican manufactur er s ur ot est 

against such a rulint; as t he code dema nds---t hat we ay 35--t an h0ur---a s it 

will be i mnossible for us t o compe t e wi th for eign merchandis e and i ll thus be 

comoelled to put out of wor t .. 1ousands of Ame r ica women no emuloyed in he 

beaded bag industry. 

9811 
- 338-

e sincerely houe you ~ill t~~e immediate steus t0 ur0hibit NRA labels 

bein uut into ba ~s hat are not wholly manufactured in the United States. 

It is imuerative that you act on this at once, before the NRA labels 'at 

allowed to be uut into the bags. 

Dr. Earl Dean Howard 

Denut•r Administrator 

Commerce Building 

Washi'ngton, D. C. 

Dear Dr. Howard: 

V:J ry truly :.vours, 

May 22 , 19.34 

. • • 't • 

The Beaded Ea.e; Gro.uu of the Ladi a s' Handb'ag In·dustry · has a,sl<e_d for an 

official ruling as t0 whether beaded bags nartl v imported and finished in th 

United States will be ne~mi ttea. to ·us e· an N. R. J,... · label · issued by the Code 

Authori ty of the Indus try. ··- .. 

The Eeaded Bag Industry is evenly di vic1ed ori the ·questi-on. · Those who 

imuort b~ad cover-~ and, _ fi)'lish them into bag s in the United States contend t.t 

should be permitted to have the ab~l. Those wh o ma1<:e ti1e comulete bag in 

the United States contend they should not be allowed to us e the N. R. A. lru 

The Code Authority has ruled: 

, 11 In order that an official decisinn may be had from the .Administration 

regarding our ri.e;ht to issue such labels, we have filed the required prates· 

to obtain such official ruling . In the meantime the Code Authority will is· 

labels to beaded bag manufacture ~ · for bags nartly im"TJort.ed and finished in 

t ne United States". · 

In orde r that e may obtain an official ruling I am enclosing thre.e 

pro ests filed ty mbers of the Eeaded Eag Groun against the decision of tl 

Code Authority rulin ~ The Beaded Ba.c; Group is desirous of obtaining at th 

earli e~ t uossible date an official r uling . to guide thern when placing their 

r equir eme nts for early fal delivery. 

9811 

Very truly yours, 

Code Director 

Ladies' Handbag Industry 
Ma.r 18, 19~4 

Gentlemen : 

Ther e ·hrs been an attemot on the uart of the Code Dir e ctors of he 

Pleatin.e:, Stitching and BoT'naz and Hand Embroidery InduR try t'"' include beadin 

on ladi es ' handbags i n Lheir Code . 

W., have just succeede d in 0bt~in; e a sta , t0 1Jrevent this Code from 

interf 3rina ~ith t he ma~e rs of bea d8d boes. This action we de8med nec es~ary 

in vi '='w of the fact that the C0de of the Pleating, Stitching and Bonna.z and 

:land ~mbro der ~ I ndust :7 aboli !': he s al1 ho!Ilewor 1?" afte r Jun e l. , and wh-t ·h wm.lld 

oy its ouer ation stou such hom~wo rk by the manufacturers of b oadoa bags. 

Very truly y ours , 

Cod-3 Directo r 

Ladies ' Handba~ Industry 

The Beaded B8 ~ Indupt:br is a d·ivisiori. of t he Ladi s I H ndb~l~ Industry . 

rhere a r e cbout 2o man~factur rs; 14 can b e classed ~s manufacturers of beaded 

oags and 6 as im-oorters. Bo we~ r, in both classes there is a n ov rlap1J in , 

som8 manufacture rs also do. imuorting and imDorters ,~ o do some manufacturing , 

'3-nd others who mal..ce all of .the ir product in the' Unit ed. States. 

- Beaded bags nr e i m·Jort'ed eithe r as a corrrolete ba ~ or as be~ded cover s and 

finished into a b ag in the United States. The chief countri e s .from which the se 

oags are im·0ort ed ar e Bel ium, France, Czecho slova1da .and Jauan. The nresent 

tariff on b eaded bags is f'ro!Tl 60% to 90"h , denending on how the b eading is 

1:1'0'01 ied. The cheau bags mostly come in at 60% duty. A P.:r eat many imuorted 

from France come in at 90% duty, The total number of finished _bag s iiDDorted 

in 1933 were approximately 52 , 053 . The r e a re no acctu·ate f~gu s obtainable 

for the number of beaded bag c ove rs imuort ed , or the quantit; of beaded ba s 

imoorted during the first four months of 1934 , The tot al vnlump of sales for 

the industry for the yea r 1 932 wer e abou~ $3 , 000 , 000 . 

With this anal ysis of the industry it must be auua r ent +ha he r e is a 

iecided conf lict of inter ests ~mon st the grouns of manufacturers who make a 

~omulete bag in the United States , thos e who imDort the covers and finish the 

)ags in the United States, and t hos e who imnor t the finished bago It is the 

~ontentio r, of the grouu who ma~ e t he comol ete baa;s in the ':Tni ed States that 

the duty on the imuo r ted "b ags should be r aised the full 50% allowable under 

the National .Recovery Act, and. also. tha t no N. R. A, l ab els should b e i~sued 

;y the Code Au thority for us e in bags uartly imported and f i n\shed in the 

Jnited States. It is the contention of the grou~ ho imoort the beaded covers 

1nd other ~arts and finish the bag ±n the Unit d States that they should be 

:tllowed to u se the N, R. A. l abel since the wor 'V: i n finishing he bag is 

,;e rformed by Ameri an labor, This grouu do es not u ro test agai nst any urouose ti 

increase in duti e s, It is tne c0ntention of the imuort ers of beaded bags that 

lche "9re sent tariff fu,_l y nrot ects the American manufacturer of beaded bags and 

~o increase in tariff is required. 

)811 
- 340-

At a mee ting of he c ommi tte e auuoint ed by the Chai r man of the Code 

Authority to study homewo ~ i t was de cided to call a mee ting of all nown 

memb ers of the Beaded.Bag Jndustry for the uurpose of ures ~=mting a re soluti"l 

r eque sting the Cod,e Aut'h.ori ty t o. De ti t ion t he Tariff Industries Board of the 

• R. A. to incr ease t he tarif f on bea de d. b'ags· the full 50~ urovided f or by · " I National Recover y Ac t, a ls o t o ueti t i on t he Code Au thority to allo!W homeworl!: 

on b eaded bag s. at the r ate of 25d P.n hour instead of 5~ an hour as urovided 

fo r bv the Code . The manufaC'tur ers h eld a · mee ting at the ·Hotei McAl"Oin on 

May ~ There we r e 14 f i rms renr e·s ented a.t t he me.e ting. The ·re-oort of the 

committee as r ead and eznlained. A resolution wa s made and seconded that 

the .r euort of t h e committ ee b e adont ed.· The r e sult ·of the vote was 7 for 

the r e solution , 4 agai nst , 3 not voting. 

From t he stat ament s furnished by ma nufactur ers, r~ctors and workers 

it i s evident that t he r e is n o comul i a nce on the 35d a n h our r a te. The 

evidence of wo r kers , shows concl usively that the hom ew or~ers have no uart in 

f i zing the e work uri9es, they h ave no b a r gaining uower and generally 

take what u ri ce i s offe r ed t l.1em. It is t he custom of the beaded bag industcy 

to engage homeworke rs ei t h e r individually or through ntrac~ors. ~en t he 

~ is gi ven t o t he indiv idual h omeworke r a small s e curi t y is deManded by 

the manufactur er, u sually .. not m.o r e t ha n a few dollars, a sum not sufficient 

to cover the value of 't h e mat erials entruste d t o . the homeworkers. but more fc 

.uu rnose 0f .e stablishing r e su o:n si bi).i t y . · When ·wor 1"" is giv3n through contrac~c 

the contract or is made r e'suonsibl e for a}l ma t eri a1s and the deuosi t is 

usually mor e ,sub st anti a,l • . The cont ractor g i ve s out the wor1(' t0 .the individU1 

homewo r ker s , he a ssume s a l l r e s-oonsibility, collects a nd delivers the be s tc 

the manu facturer, f ur nishe s the cotton to the worker, a nd in r e turn uays the 

wor kers hi mself; for this rvic e t he contractor usually retains about 2ot 

of t he p ri Qe he r e ce i ve s. Fr om tn ~ evidenc e .furnished by the .contractors M( 

homewor kers the av er age wage earne d by ' the homewor ker is from 7d t o lOd an 

hour. The r e i s abso l u t ely no me thod of det ermin.ing the number of hour worke1 

by a homewo r ke r. From' t.he sta tements of thes·e worl{ers from 10 to l2 hours a 

day is t he aver aee . 

The h omeworke r s a re deenly c once rne d about the aboli t i0n of homework 

claiming tha t it will denrive t hem of their means of earnine at least a 

-oor ion of t heir livelihdod. · The contrac t ors a re in favor ; f abolishin.g 

homewor k , c l aiming that it will g ive +hem an onp ort unitv to on en contract 

shou s a nd b ring the homewor ke r into their shops~ Th e nuf ctur9r do es no t 

wish to ha ve homework aqoli.s hed since he cannot as·surne the overhead reauired 

o estab~ish a nd mainta in t.he numb er of ·workers tha.t he would require to 

u r duce t he volume of .his -o roduct in his own faatory. · 

The situation is mor e c 0mnlicate d by the c~ntention of the Code Authori 

of the Pleating , tit ng and Bonn ~ a nd Ha nd Embroidery Industry who cl ai~ 

hat croche t b eading is part of t heir Code · and th:-: t the Code of their indust 

bol~s~e s a ll homewo r k a f te r Jun~ 1, 1934 . A stay has been. obtained from th 

u rov1s1ons of this Code f or t h e beaded bag manufacturers on t he ground that 

hey sell only the fi nished n roduct an·d that the -oroduct is definitely a bar• 

bag , that the crochet beading is only incidental. · 

Lab els fo r -oa r tly im or ed bags it has· been ruled · that labels will be 

fur ni s he d fo r use in su ch bags pe ndi~g 'a final de cision from the Administrat' . 

..... 

9811 
- :::Alnrot est necessarv t0 obtain such an of~icial rul.in~ has already b een filed 

.tn tle Administrat ion in We.shins ton. 

The matter of wa~e r ate s, it is evid ent tha ~ if the American manuLcturers are c om·o <3 ll'3 d t0 nay 35i an l:our "' r homewo rl<, i ey cannot hone to 

>mnete wi th the imoorted bags. If they are n tJrmi ted to hav8 a r ate of 25ct 

1 hour for l:omework , they can nrod.uce some goods COT!Jnar able with imnorts. 

te mc:tnufacture rs of b eaded bags are will i ng to maintain a machine ry for 

,mpliance witn the 25ct an hour r ate , if and when granted . 

As a r esult of an imnartial investigation of the Beaded Bag Industry by 

te Code Dire ctor, it is advis~bl e th .t the e~ ept ion a sked for , ma~ing a 

nimum rat e of 25ct an hour fo r homewor%e rG, be anted to the Beaded Bag 

.dustry, b~t only so long as they maintain and comnly fully with the rule s 

d r egul a tions to be established hy them for the fi Y-i ng- of ni ece w0rk orice s 

be paid to homewor~e rs on b qaded bags. 

A. Mitt enthal 

Code Di.r ecto r 

1E l 
9811 

-342-

E X H I 3 I T P -------

Standard Cost Formul a 

Part I Code Authority Presentation 

Part I I - Co!'JIDe:1t , Resea.rch and Planning 

Divisi on 
. - 043-

EXEL.-) IT P 

.:.Al D BAGS 

Ackno led ed by Mr . Boyd but never c.:.l")'ll'O Ve d c. s no such were aT)-

proved. Never laid b efor e I nd'l_S t ry , th ,r-efore never tal:en advant age 

of. At the resent time SeiJt e:nber 23 , 1935 , _) re~•ari ng a calculation 

which it is t~ ed nill be eff ective . 

To arrive at the cost of t he -1ro duct ITk"J.nufac tured : 

1. Figure the cost of all Di ::ect lfat eri a.l and Dir ect Labor . 

2. To the tota l of Dir e ct Hat eri a l and Direct Labo r Cost s a dd a 

p ercentage of ove r head r e11r esenti l t::> a ll ot her costs ( v;hich 

must ii1clude Fac t o::.:y E~")enses , Desi gnin6 Ex:-•ei1ses, Selling 

Ex::~ en ses , Distribu tion EX)el1ses, Admi ni str ative and Gener a l 

Ex-}enses . ) 

Illustration of the above met hod (all fi gures ?r e a ssu.11ed ) : 

1. Cost of Mat eria l 

Cost of Dir ect Labor 

Total Direct Costs 

$:3 . 25 

2. 00 

$5 . 25 

2. All Overhead Costs - (33 1/3; of Dir ect 

Costs ($5.25) 1.75 

Total Cost $7 . 00 

The resulting fi e;ure ( $7. GO ) r e·)r cscnts the cost of t he --'lroduct 

manufactur ed, and to sell i t fo r l ess t han thi s ar.1ount ould be in 

violation of t h e Code . The 7 3 l-/ 3~ i:i.l t}1is cxarrnle is .erel y an 

illustratiQj.1. 

D~te ination of Ove r head P ercentage s: 

The Overhead Perc ent age to b e used must be co~")uted by each individual concern in a ccor da nc e rr i th the ·1l ar' des c r i bod 011 -)ages 2 t o 

10. However , no )er cent age s~~ll be used less than 33 1/3~ . Exce::; tion shall b e made to t his r ul e b r the Code Authori t:t if t: C' 

me nber of the I n dustry r equ est i ng such cxcc-.1 tio r is j)re:1ared, on 

dem~nd, t o submit to an a6eic. of t he Cone Au~hority subject to audit , 

a budg et and ba si s ther efor ·whi ch wi l l nar rant a lov1cr overhead fi gur e . 

Also i n sp ecia l circumst ance s or for i1 rti ct ar occasio:1s ':!here strict 

ad..~erence- to t he rul e '.:oul d worl.: excessive lJDrclshi:;_J , si i lar excc)tion 

shall be made by the Co de Au t hori t.r u~1on shm1L1G of justificatio· 

therefor, provi ded , hoVT ever, ~a t a -,y member of the industry \!hose request for an execution t o t h i s vi io n i s not t?:,ra: ted by tl1e Code - ' 

Authority shall have t 'he ri c:;ht of a ,neal t o the -rnA. 

9811 
- 344-

THE PlBPOSE O:b, THE CODE O.H FAirt COUPETITION IS ? 0 PROVIDE AGAINST 

UNFAIR TnADE PilltCTICES , CREATED BY U -s c:rtDP JLOTJS Nf.EANS , A1TD TO PREVENT 

SUCH UlJFAIR TRA.DE rRASJ:!ICES, A r'IIii!:UJ OTL'. FEAD J?ERCEl:TAGZ IS EST LISHED. THIS FIGUJ1E DOES 1:0T EER~.:liT HAiqTTE'.ACTuRErtS W:!OSE PERCENTAGE 

OF OVERHEAD IS GREATER T1IAN ':2HE .!G:e. ~rTA E :EN'::I0 :E D TO FIGURE ANY LESS 

THAN 'I'HEIR ACTTJ.A.L PE3CE~T'i'.b.GE . TO p3_E .;'E;I::;_I H.!~DSH IP L 1 P:iliTICULAR SITUATI ONS CE:lTAI N EXCEP':CIOl., S AVI~ ~H AU'j:EOI\IZED . 

To arrive a t the corr ect ov erhead to be added to tne tota l cost of 

Dir ect Materie.l and Direct Le.bor , it is nece ssar y to :) rc~) are a budget 

for a p erio d of a year 1 s o:1eration. 'I'he esti mr,te s of f : gures entering 

into the b u.dg et m"..lst -be made fro;·il re cords of former yea:cs 1 ~)e rations 

and eX2_1er i ence , and should be b ase<l ~.n n a..1 ex:)ectation of normal 

business conditions. 

ILLUSTRATIO.~ OF A :3UDGET 

( l) Estimated Het Sales $100,000 

(2) Estimated Discounts Allowed to Customers 3 , 000 

( 3) 

(4) 

( 5) 

Estimated Direct Hater i a.l a:1d Di:te ct 

-Labor $66 , 000 

Estimated Overhead Er.)ense s 22, 000 

'::::OTAL COSJ: 

Profit 

$ 97 ,000 

88,000 

$ 9 , 000 

( 6 ) In the above illustration the esti mat ed overhead ( $22,000) 

i s 33 l/3'/o of the esti:"na.ted Dir e ct l.Ia.t e ri a l a :nd Direct Labor 

( S66,000) . Ther efor e 33 l/3 ; is t l1e ·1ercentage to be u_sed 

in t h e Cost Formula to fi bure the cost of each style of bag. 

The _) ercentag e of over head must be com~1ut d by each i 11dividual 

concern, and each one vtill use his rc ase f i bure arrived a t in this 

mani1 er ( exce 1t as ~1 rovidc d on Pa.;e i.) r:o flat 1erc enta6e rate of 

overhe2.d for the ent i re i ndustry ca n be used. . 

mo PREP A..illi r:1nE ~UDGET 

9811 

(l) ~stirn te the ~~robo.i e ]1 et Sales. (G:ro ss Sa l e s, less 

Return Sales, Less Allowanc e ) 

(2) 3 ased on t n e estima'ved r e t Sa les, figure the Discounts 

Allowed to Customers. 

( 3) 3 ased on . the estir.nted r e t Sales, fit:!,ure the ile cessary 

Direct Materi a l -;.d Direct Labor Costs to :;_1roduce the 

amount of :)re duc t so l d . 

(4) 3ascd o.1 the esti rnate1 Fe t ' Su les, estimate the total of 

a ll other costs, factory EX·)enses , Desisnins 1e ses, 

Se li g 1cnses , Distribution EXi1enscs, Admi nistrative 

and Genere l E~1cnses (hereafter r eferred to as "Overhead 

Exj)ensos 11 ) necessary t o ;)reduc e ai1d sell this amount of 

product . -
- 345-

( 5) Estimate the amo1mt of. :>rofi t that , . .,iJ.l be ;:Jade on this 

volume of business. 

( 6) To arrive at the Perce::1ta 6 c of Overhead t o be used r..rhcn 

figuring t h e Co Lt of er.ch st~-l e of bac; , det ermine the 

~1e rcentac;e thLt the tota l Ov._.r ·

11ea d Ex:1 enses is of the 

combined. tota l of Direct l;iat eri c.:.l and Di}:cct Lab or cost . 

All estima tes makint, u~ t h e oucls et should o e r easonable. 

The estimate of 1robe.ble net sales for t he y ea r should r c:->r e se:1t 

an amount thet t he concern can reaso nably b e ex::ectecl to s ell during 

the budget6d year. 

The estimates of Di rect ~a erial, Dil"cct Labor , and Overhead 

EJ(]e~ses should re; res ent runow1ts t~ t the concer r:. mnst reasonably ex-

:Ject to expend for t hese iter, s O..uri ng t he bed<5; etecl year based on the 

records of former yea!'s 1 o:J0ra.t i o::1s 'lnd ex·1erience , with due re;sard to 

changes that rna.:' be ex-pected to occur d ri:16 t l e budgeted year , and 

with the exceptions no teJ. h~reafter on :·>e.De 11. 

Fixed costs rela ti:1g to buildings, rn.c 1inery and equi~ment , such 

as rent, de Jreciation , insLuanc e a ":d taxes, and. fixed s e1lary i terns 

must be ut into costs on a basis of normal r ates of O:'Jer at ion. 

Do not overlook the method o::· handl i ng L1.t er e st a~1.d other i terns 

described on page 11. 

The Standard Cost Formula sets forth ric;id :'Jl'Ovi sions, but minor 

deviations t}1at would not materi all y chai c;e the method or results may 

be made . 

DIRECT MATERIALS 

Direct Hateri e.ls are t o i ncl n.de all those materiels 1.'Thich can be 

traced directly L1t o the :·Jrod.uct . 

Price a ll Direct Fat erials f or cost formula A.t market rice jJrevailing at et!W time wit' i }. thirty (30) days l1rior to date of sale or 

at actual oost if 1urcba sed r:i "thin four ( 4) months of date of sale , 

whichever is lower . 

Exce~::> tion to this r a l e may b e talce:.1 only u·•on a n lication to , and 

p~rov l by, t he Code Authority. 

Incornint;; Freight ancl 1ncomin,_, cartabc on raw ma terial arc regarded as a r>art of the Direct r:a.tcrial Cost . 

The following items a r e classed as Direct ~tcri ls: 

98]] 

Cover (leather or f abric) 

Lining 

Pocket lining 

Rubber cloth 

Wadding 

Flannel 

Packi n6 material 

Paper 

Cotton a nd 1ins, e tc . 

Fre.me 

Purse Fr arne 

Zi::>j)er 

Hirror 

Fittings 

Ornements 

:Jut tons 
Cement 

Welding 

DIRECT LABOR 

.. . - '346-

, . ... .J oxes 

Tissue ... Labels 

Direct Labor is to i i!Cl ude wages 11aid for l abo r :1erformed ~::> ecifically. on and. char:.;· ed directly to the :)roduct. An.y other labor is 

indir ect l abo r cmd must be included in the Overhead Ex_'!enses. 

In estimating t h e cost of Direct Labor o~1erations, there must be 

included the diff e~ ence ~a id whe~ the earning s of piece workers fall 

below the minimum waE;e . • . 

. All Direct Labor must be identified a~d se~arated from that vart of 

t he :::>ayroll tha t is classed c\ S indirect and other overhead labo.r. 

The follm1in..c; includes a ll t he i terns of Direct· Labor generally 

:o~1licable to the He.ndbag I ndust ry. Any .s"lecia l or unusual direct 

l abor 0:9 ra~ions , or di rect l abo r 11erformed outside the factory such 

as embossing , stri}1p i ng , etc., should. be added. 

CUTTI;NG 

Cutting by Hand 

Cutting by Clicker 

Cutting Rubber Cloth 

Cuttin€:, Lining 

PARING 

Parin.g 

Burni shing 

Sp litting 

Etfi3 0SSING 

SEHING 

Sertinb Handle 

Sewing Handle on Cover 

Sewing Covers on ilo ttoms 

Sewing Mirror Poc~:c ts on Linings 

Sewing Frame Pockets 

Marrov in~ Fre.me Pocke ts 

Sevi nb og thcr lini ng 

mtin~ on Zi ~Y) Cr 

MAl~ING LIKI NGS 

Cutting Wadding 

Cutting I nt erlining 

Cutting Papers 

TrimmL15 Cottons from Linings 

Trimming Co t ton fro m Handle 

Serrinb on We lding 

Cu '~ ting a:)art Jo ttoms from Welding 

l.-:atching Covers, :a ottom and Handles 

F.angi nb on Waddins on Lining s 

Sewing to0 e t her Lil1in6 and Covers 

Han5 i:15 on Pal)Cr on Silk for Pocket :aendinE?; Po9ke t 

CementinG Silk on Paper H nging on Muslin on Silk 

Tur ning i n Pocl~e t Harking Silk for Pockets 

POCKE1r J OOK ·.o:.:u'" Stri 71 in~ on Covers 

Hangine:, ~! ~;cr on Cover 

Cemcntint?; paper ancl Cover 

9811 

T 

Hang ing Pa:,)er on Silk 

Ceme:1ti nc Silk 

Turning Silk · 
- 347-

Puttin~ in Button 

PuttiD6 on Ornaments 

Putting on Handle 

.aking tucks or pull ers 

Turning in Cover 

DIRECT LABOR 

P.Al D LACING 

TURNING 

Turning J ag, Sha.:p ing and Hammering 

Turning Fratne Po ckets 

FM.NliNG 

Framing Pu rse 

Fra.ming Po ~ce t s 

Framing Jag 

FR.AlviE COVERil\ G 

Covering Frame 

Coverint:: PocL.::e ts 

Covering Purse 

/.'I ' 

EXAMilJING AiiD ?.ACKI NG 

Trimming Thr ead ancl Examining 

Wra.p)ins i n Tissue. 

PuttinE:, in :3oxes Fmd Labelint:; 

OVbRHEAD EXPENSES 

Scttinb toc;ether Silk and Cover 

\1,'=l.r king Covers for Sewing on Handle 

Put ting 11a:1cr on back of bag for. 

ba.11dle 

Trin11 1in~ Edbes of Cover s and Bottoms 

Overhead e.x:_J"nses i nc lude all ex- 1enses nhich cannot be treat ed 

directly into the 11rodu ct . They d.o 11ot include Direct 1.1at eric>.l and 

Direct Labor. 

The followins is a det c>.il ed list of Overhead EXJ!enses classified 

as to Factory , Designing , Selling , Distribution, and Administrative 

and General. This list c overs e ll of the i terns of Overhead E~1enses 

genera,lly a::_1~ li cable to the Handba:; I ndustry. 

Fixed Costs r el a ting to buil dings, machinery , and equipment , such 

as Rent, Taxe s, Dep r e ciation and Insura.nce, should be i ncluded only for 

such buil dings , machi nery , , and equi j1ment actua.lly us ed to manufacture 

the l1roduct sold. EXJ1ense of ma.inte,ining and :1rotecting buildings 

completely closed and equi :1ment COID:"•1l c tely i no)erC'l tive i s to be excluded from Overhea d Ex:1enses enter {~ i nto t he Cost Formula . 

Salari e s of ~xe cutives should be i ncluded in Overhead E~)enses 

for the 1ur )ose of the Cost Formula onl to tb.e extent of a rcC'.sonable 

amount, t e-king int o consideration the s·i zc and nc.ture of the business 

and t he 1ro 1crt io n of such salari es of ov •11ers e.nd chi ef executives. 

Expenses not to be included in Overhead. Ex:1ense for the l)ur·)ose 

of the Cost Formula ar·e listed on :!_1age ll. 

9811 
A. FACTORY OV3RHEAD 

Executive Salaries (Pro&lction) 

Super vi sio:.1 ( Forem~ ~1) 

Indirect Labor 

Floor Joys Salaries 

Jag Re}18.ir Man 

Factory Of7icc ~laries 

Buyers Salaries 

Receiving Salaries (Direct .1a t erial s ) 

Stockroom S.'?.la.riee (Direct I.1aterials) 

Foreig•1 Buying E::>..'}1ense (For Direct ! .. at eri al s) 

Factory Su:•plies (Oil, BeltinE,, Pe.ring Knives, Heedles, Emery 

Wheels, et c.) 

Dies, Small Tools, and Par ts 

Machine Re 1air s 

Mach ine Rentals 

Roya lties 

Depreci a tion of Machinery a:.1d Equi :1ment (Exce~? t on completel;r 

idl c raachinc1y and equi!Jnent) 

e~)r ci[' tion of Factor:r ~3uilding (Exce:1 t on com 1letely idle 

buildings) 

Amortization of Leasehold I m·1rovemel1ts (E e~:-> t on com1letely idle 

improved ?ro )crty) 

Port ers ~d Cleaners 

Li ght - Fa.cto:::·y 

Heat 

Power 

fa tor 

FactorJ Trucking 

Rent - Factory 

Local To.xes 

Power House labor 

Insurance - Fire, o~1e~sat on , Mi s c. 

Protection - El ectric, Payroll. 

Watchman Salaries 

Factory Traveling Ex·') ense 

Sundry Factory E)\?ense 

B. COST OF REP .tir's TO JAGS 

Repairin6 of bags he.s a l ways bee~ El . i tern of considerable ex;1ense 

to the industry. ~he actual c ost of labor and mat eri a l s ~onsumcd in 

r e-·?air ing bab s togethe r rri th ~:mdlin..; a :1d fornarding cha rges (two ways) 

is rarely if ever, included in the original co sts. Nev ertheless, in 

some cases, this i tom amount"' to as much as 2'Jb of the s e.les. It is 

im:_?ortant that this i tern of e:x;,1ens c be figured i rl t he cost of the 

ba5s as an overhead e~?ense . -

9811 

The following i toms go to maJ:c UJ') the co st of repairs: 

Cost of Direct 11a teric>ls used for ~')a irs 

Cost of Direc t Labor in EJaking re·1 ai~~s 

Handline; of rel"lairs - clerks, ra~)l')ing 

co rrespo~dence , etc. 

Forwarding charges f rom and to customer 

Tott'.l Cost of Re:ye..irs 

$xx 

XX 

XX 

XX 

$xx 
C. LOSS ( MARKDOV/NS) ON I NVEFTORY 

I t i s not .musua l :fo r r'. :1 . .-.ndb;-·.u r_iu..1."!L.t.f-:c.: t urer hr'.vinb ?. vol um of 

sa l es of $500 , 000 d.urir1l; t he ~re['r t o f ind. ".t t 1 c end of t he year n 

inventory on h r.11d mnountin0 t o $25 , 000 . 

Thi s i:1ve!1t or y vd 11 j')rob::.o ly con sist of so:ne frf'.mes a nd or-nrunent-s 

which C".n "be de:-')r e ci·1..ted .. t l e:\st: 50 :~ r c ent i mmcdi:'..t el y :--.nd even 75 

n er c ent if the~r h,~;')· )en to be ~ sm".ll qu:1..n titi es. 

The l ent 1er s tock e~ o~ i s usu- l ly i n fall co l or s , i n uneven 

co lor f' ssortn ents, which C".l.1 be er ci d 50 per c ent. 

Fi nishe d goods invent or y on h_...,__~1 d usur'..l l y consists of the l er.st 

cles.ir<1b le styl es in b roken color .".ssortments which cr·.n te c~? L". d 

f rom 25 t o 50 p er cent. 

It i s s..-.fe on t ho ".ver <'.ge , t her efore , f or n:ny ITI!"'.l1Ufr.ctur er of 

ht' l1db s t o fi ure 50 l)er c ent dep r e c i ..,,tion on h is inventory ."~. t the 

end of t he y e!"';r. 

Unl e ss t h i s ,i tem: of $12 , 500 ;.l.b:ss Lq i nv e:1t or y i s fi gur e d int o t he 

ori gi nr.l cost it i s mor e t h r·.n lil;:el y t 4:.t nh".t i'; ne-.r cd to be E'-

:profi t <'.ble :re".r mr'.y res 1.1l t i n r'.n u n1rof i. t .".b l c yenr when t he loss in 

inventory i s c h.".r ged i,g.".inst t he .:1 rofi t · For ex['..rrrpl c : 

I nvent or y · $25, 000 

Less de:Jr e c i -".t i on 50 -)er c ent 12 , 500 

Vn.l u e of nv nt ~r on ~n d $1 2 , 500 

Tot ..... l ye:~rly le s $500 , 000 

Estimr·t eel Profi t $10 , 000 

Loss on i nv ent ory 12 , 500 

Defi c it $ 2 , 500 

rc en ~.t:, e of lo ss on s; .l os % 

Thi s {e ~J e mny v··.r y wi th diffe r ent t y-:J c s of m:-'.l1uf;'..ctu r er s 111:'"!1-ing 

different k i n ds of b "'Is . Wit h s or-1e , t he i nventor y ID''Y be hi~hc r .:--.nd 

the :p e rcentF'..6 e of m".rk dovms l or!er . :!!'or e:X''.m-')1 e , ['.. mr.nuf" cturcr mry 

h -:.v e r>. $50 , 000 i~ 'l en t ory wi t h ['. rn:'.rkd.O\li1 of onl y , de)1cndi ng upon 

t h e k ind <".nd n.'"l.t ur e of the invent or y . The }lrl nc i v l c i nvolved, how ever, 

must b e -~ d i n ever y c.".se . Er•.ch m"~.nuf:. ct ure r si1oul d c."rcfully 

stu dy t he condi t i ons i n h is own p?.rt iculr r line . 

D. DESI GF OVERHEAD 

Exe cut i v e es (Des g~ in ) 

Desi gner s ri s 

9811 

S<'.mpl e _.-1r>..king Sr..l . ...,.r i e s 

S;'..mpl e dr t ri :-- 1 s 

RD.w Ivlr.t er i c..l s used i n Desi t;ni nt; 

Pu rch!"'.s es of Srm;_)l e 3t'.g s 

Sundry De si 5 n i ns Expense 
E. Executive s~l · ries (Selling ) 

Cormnission s - S::.lesrnen 

Sn l csmen ' s ries 

Lo ss on S ' lesmen 1 s Auvnnces 

-350-

Showroom ries ~ 

Amortiz ti on of Lensehold ImJ;rovements - Selling 

AdvertisL g 

Advcrti in~:., sr.l·1..ri es 

Roy"'.lti es 

Auto Ex-:1e:1s c 

De recir•. tion of Auto ... 

Rc 1t - sellint:; 

Light - selling 

Sundry Selling Expenses 

I 

F. DISTRii3UTI01T OVEREEAD 

Shi:J:Jint:, S<'.l nries 

Stockroom Snlnries (Finished nb s) 

Vlr n:_;~J ing '"'nd P:- eking mnteri . ..,,ls 

Freight , EXlJress, Trucking, Pr.rcel Post, Co.rf"'.res - Outwl'..rd (Shi:J:1in& 

Sundry Shi~J ing ExJ._Jense 

G. ADIID ISTRATIVE APD GENERAL OVERHEAD 

Executive Snl n.ries 

Office S:- l ."'.ries 

Insure1:c1ce 

St tio nery , Printi ~ I'..Ud Office s~~J lies 

TeleJ;hone :-.nd Tele rP ~Jh 

Post r.ge 

Auditing Fees 

Legnl Fees 

Dues f'..l1d Subscri'l') tions 

Rent - Off ice 

Li ght - Office 

El e ctric Protection 

Code Authority Assessmer..t s Ex:1e:c1se 

Ta xes - exce)t I n come !~xes 

Provisi011 for Doubtful Accounts or B.::d Debts Written Off 

Cr edit n1d Collection E~Jense 

De:;;>r ecir tion of Off ice Furi.1i ture . n.nd Fixtures 

Bnnk Chnr ges 

Sundry Gener.'"'.l EXlJense 

I TE S NOT J:!O 3E I NCLUDED IN OVERHEAD OR I1JCOME 

I TERES·r o··i :JORROWED i<iO TEY 

I nt er est on rmney borrowed should not b e incl uded in overhe~d 

costs, but for t his ) Ur:)o se s!1!'.ll be considered t'. S r. non- op erP.ting 

ex:_Jense due to l r• ck of suff ici cllt invested CP-~Ji t!'.l. 

LIFE ~SUR.AlJCE Ow'1ers, Chi ef Executives o..nd E111lJloyees 

Pr emi ums on ~>olic es insurin~ the live s of ovmers r.nd chief 

exccuti ves, or on ~rou:! life insurance for emJJloyees, must 11ot be 

included i n t he overhe;:,d eXJenses but for this pur;Jose should be considered as r non-o_Jorr.t ing .ex:nense . 9811 
--351-

FEDERAL , STAIJ:IE, LOCAL INCm 1E TAXES AlJD EXCESS PROFITS TAXES 

These must not be included in the ovorhe".d e.A'"'Ie~1ses but for this 

::_1urj)ose shc.ll be considered <'.s " no11-o ~-; err.ting ex-.)e:1se . 

DEFERRED EXPE11SE 

Ex~1 enses, such "s insurP.nc e , ~1r..i d for i:1 the period under budc:; e t, 

but pD.rtly a~ licc:,ble to <~ futur e period, must be 1rO !erly 1ort oned 

to the budget period. 

DONATIONS 

Donations of the ch..;.r ncter not .r.llowed by the :Burer..u of Internt>.l 

Revenue must not be included i n overhet".d ex-1enses. 

I NTEREST ON I JVEST1.1ENT 

Int e r est on owner 1 s investment or ~)i r.l QUst not be included 

in t be ove rhet'.d expenses. 

IIJTEREST EARNED 

Interest Eo..rned should. not be include.9. in o:)err..ting income, but 

shc"..ll be considered P.s ::-. non-o 1err> ting income due to h<'..ving sufficient 

CE'.p i t e..l invest e d to secur e this income . 

NON-OPERATING I NCOME Alill EXPENSES 

Any unusue.l or extrao rdint" r y i terns of i ncome t".!·tcl expense such r-.s 

dividends, fire loss, S}JeCi "..l st".les C"...T!j) ".i gns, dovelo:1ment work, etc ., 

must not be included in income or 0Verher.d ex:1enses. Such it ems r>..re 

cl2.ssed n s "Other I ncome" c:.nd "Deductions from I:ncome 11 ,...,_~d r.re to be 

omitted in the Co st Formul c:. . 

STANDARD CALCUL.ATIGrJ S:H::!BET 

It is m2.ndc·1.tory t hnt er".ch m.".nl.lfl'..cturer kee·) de t P..iled records of 

the cost of e:'.ch indi vi dur'.l style of b .. g m::.nuft".ctured by hiru. 

For this purj10se the Co de Authority h ".s <' ~! ~roved .r. stPncbrd form 

of cc:.lcula tion sheet, n. sP.mple of which is shown o:.."l the following 1<' ge . 

Thes e Stn.nci...,rd C2.lculr>..tion Sheets shoning the detr-.ilcd costs of 

e<'..ch style must be t".Vt".i l c.b le to the C'.uthori zed r..b ent s of the Code 

.Authority upon request. 

9811 
Code Authori t~r · 

Lr'.dies 1 H.:.'..ndb, .g I ndustry 

SKEmCH 

9811 

STYLE 10 . 

Desc ri ,.., t o~1. __________________ _ 

·----------------. -----

~,rA.T P. LS --- Co ver ... . . .. . .. . . .. •••••.••• . '1li' 

Linilt .... . ... ~: 

- . Poc·'.::e t Linin6 

Rubber Cloth . 

c: ddins 

F1rn:c1e1 

3r<.cl::i n.; liat eri r.1 

Pr ller 

Cement 

We lting 

Cotton nnd p ins, e tc. 

Frr.me 

Purs e :irrnne 

Zij)-'-)er 

i.iirror 

Fitting s .... .. ... 

Orn..,ment s 

3uttons •... . ... . . 

Boxes 

Tissue 

L,.bels 

isc 11 neous •. .. • 

TOTAL COST OF l:IAr:::ERI.A..LS 

• • TOTAl.~ COST OF LAaOR - Fo r w<'.rded from reverse 

side 

TOTAL DIRECT COST 

Acid : OVE258AD E:;a?EJ.JSES ( ••• ~ of totR1 Direct 

Cost) 
- 353-

TOTAL COST 

Sellinf,; Price 

Less Discounts Allowed 

Pet Selli ng Price 

PROFIT 

"r' ~ •••••••••.••••••• 

~~==================D==IF.=~=C=T==LA30R COS~S=========================== GRot.JP OPERll..TIO -

ClJTTEW Cuttin.:; by hand 

Cuttin..:, by clicl:el~ 

Cho,.ner 

PARING 

Ei.ii30SSING 

SEWIJ.JG 

TUID I NG 

FRA.l'viHTG 

FRA.IviE COVERING 

iAKIUG LINI NGS 

POCKETBOOK WORK 

9811 

Hnnd GrC'.der 

Cuttin~ Rubber Cloth 

Cutting lining 

Cutti ng \i".ddinb 

Cuttins I n t erlining 

Cut t in>- -;<' ;crs ~~-------------------------------

rins 

-::J • h' I' .DUTi.U S 1ng 

s.-)li t t ilP' 

Embossin,:· 

S c\'l i nt:; l1<'.i1 dl e 

Sc\iL1b h:-,:.lclle 01: cover 

Sev1int.:. covers Oi: 'bottoms 

Scwiil6 Mirror Po~~ets on lining s 

Scuinb fr~ e ·, od ets 

II~ rowin; fl~ , me .1ocket s 

ew in~; lini11,_ .. to.;ether 

Sevrin.; on Zi ~.., )Or 

Trimmil':.; cott oi.l from lining s 

Tr i mminG cotton from hn:1dlc 

Scv!int; on Woldin:-s 

Cuttinl= ::-:;fll' t 0ottoms from llolding 

M<.'-tchi· ~ cov0rs, bottom r-.i.<l h:->..ndlcs 

Hfl.i1ginr::; 0,1 W!'.dC.ii1c; o:1 1 i n in..;s 

Sawin _ top etl-;or linin, .. ;'i.ld e:ovcr.!es~-

Turnin~ .. l)(I.E; , sh )ir1c <': d. h ~tun orinb 

Turn ~~ fr;-..me -- oc~': ts 

Fr<'.mi n.b -1urses 

Fr mii1t; -,oc~ :: s 

Fr;:.min;=. b<'.•. 

Coverin;; Frm:ws 

Coverino Poc1:ct s 

Cover in - Purse 

H<'.nc;i:1£:, on '. cr oi silk for 1JOCk et 

Cementing sir· on -;r-;1er 

Turnii.1'-. in -)ock ct 

13 e:,1clin,::. 110 ckct 

Hrmt;i nb on muslii1 on sill: 

:iC"rldn ; il~:: for -.1ocl:ets 

Stri }~in~ o~ covers 

Hf'..nbinb ~)r- ~;cr 'D cover 

CementinE6 '-:· cr on cover 
GROUP 

PDCKETJOOK 'fORK- continued. 

H.A.ND LACING • 

E.X.AlvliNIEG AND P_ CKING • 

- OUTSIDE LABOR 

TOTAL DIRECT LABOR 

• 

• ._.. 

9811 

- 35·:1-

0PERA'I'ION 

Putti~G i n bu ttons 

Pu t t L1J; on ornnment 

PuttL1 ; on h'"'.ndle 

Lnki nb t ucks or ]1Ull er s 

Tur in~ in cover 

Ht'.ngin6 !r~lJe r on silk 

Ce montiri~ silk 

Turning. silk 

S~ii~ni to~ether silk and cover 

Marking ·covers for sewing on h.o.ndle 

Puttinb ·10:·1er on b r'.ck of bnt.S for 

hc:..ndl e sewing 

r:Lorimrninp. ed,2:e s of covers [l_,nd bottoms 

lic-.nd' J4:.cing 

Trimmi~g thread nd examining, 

Wr P~)~?ing in tissue ,Putting in 

boxe s f'.nd l ab eling 

:E'ORW.ARDED TO FIRST PAGE -

STAHDARD CALCULATION SHEET 

• 
i·Ji:MOR.AlillUh1 

TO: 

FRO 1: 

Su13J ECT: 

?vir. Lei _;h _, . Ore , 

Lee. t!:lcr Section, 

- 355-

Fcbr 'l·"T'' 1 , 9~f . 

.Assi s t <'.nt c~ y t y Aec.1i :i strc.t or 

Orton W. Bo., d , 

Cost Acc ounti nG Uni t , 

Re s earch and Pl 2n~ n Divi sio1 

Lc:.dics 1 HC'.n d'bttt:; 1cl1..:s r - St ttnd..;.rd 

Cost Foi .. !:tl.:l t\. : 

This f ormula h<'..s beeil sl,_bmi t ted under the -)revisi ons of Article VI, 

Se ctioi.l 8 ( i) a nd Articl e VI I I, Sectioil 14 . 

The first ~mcd ·sec t i on em'lOWcr s the Code Au thority t o r e commen d 

the un.ifOI'm COst a nd/ or P..CC() m t i ng syst em for C<'..Ch d.ivisi o:, of the 

i ndu stry _ Yrhich, u:lon c&J>_pr~ov~'J._ by t he Adrni n istrP-t or, sh;.ll become <'.. 

pc>.rt of the c ode. Ar.:y o emb cr of t hC' i n O..astry i s 2_)Crmitt e cl to continue t he us c of his current cost or cco~1 ti nb syst em vidcd t hat 

s elliEg ric s estim<'-t cd. by t h e u sc of t h" t sy st em sh'"'.ll not be l ess 

t h..,_n t h e co st of t he a r t icl e de t ermi ned i n <' Ccordc".n c c with the f'.l ) -

~~ ;roved f ormul <'.·· · 

Article VIII, Se ction 14 ~roh ts sr>.lcs bcl o·1 indi vi dua l' s cost 

a s comput e d by t he :- ccl Uili form co s t sys t ern. Exc c:')t i on s , ho\7cvcr , 

a r e :<:,r a nt e d fr o .. J t h:-' t r u l e f or t he :YLl.:< ;ose of !':'lc c tine:; corn·1cti tion of 

ano t her memb er who i s not s c,llin. bclo ., his i ndivi du.. 1 cost , rmd for 

ea so l clca r Bnc c es , distr essed o~s ~ e tc . 

The Fn!rov2.l or di .""·P~rov;. l of t h i s ·wo:lOS;'l l i s ':')1tr~ y "'- !Ilr" tt cr 

of Adrni ni stra ti v e J!O li cy , i n.,smuch t'.. S i f i t 'ere to b e ":T >rovc c1 , it 

would effc ctu te t he C'.b ove cited scctio -~ls of t he Code of F"'.ir Compcti ti on, ea ch of whi ch conflicts with lill.A ·,"lolici c s <'.s ct f orth in 

the Off ice .ie.nua l. 

I n P.ny event, t h i s llrO!)OS:-'.1 is <'-n uns~_ ti ". ct ') l' Y device fo r the 

eff e ctUc.'l.ti on of t he no- sellin5- below- co st ~· revi on f or rcPsons rs 

foll ows: 

1. Acc ording t o Pa(;c one , the mi n i mur.. <'..mon:1t of ovcrhcnd to' 0 c 

used i n t he det erminc>.tion of un it co s ts is 33- 1/3)& of the dir ec t cost s 

(Illf'.t e ria l, c-md dir e ct l n.b or) . An cxc e·yti o:1 t o t h i s r u l e i l l be :)cr -

mi tt ed by t he Co de Authori ty if "- ncmb c r of t he industr y r cqucstL16 

t h e s2.me is i n Dosition t o dcJnonst r <'..te tho f <' Ct th...,_t h i s <'..Ctur l ov er -

h ead ex-_? cnse is n l ower :.• crccntC"gc of t h e chr c ct co st s . ':2h i s )r evisi on conflicts with Office L'cmor <'..ndum 228- 3 which ~_) rovi dcs h·~t no 

cost r.ccounting syst em sh..,ll sug _e st di f f crcnti, ls or _)crc cnt:'..gcs 

9811 
- 356-

which ··ould t ei1Cl co bri:L1[:; rbo u.t <'.l'bi t r<'.r·y u.ni f or:ni ty i n costs. I :-1 

other vrorO.s , cPch .1em~)or of t he i::.1Ci.ua try should corrr,iute his ovm overhe:"'.d Oc! t 1e D[\Si s of hi s own e:;;::1erience. 

2 . The method or ~1.~)~i yi:1.~ ov erher'.d to uni t co sts <> s <-~ :Dercent['..ge 

of ~~rime cost i s obsolete r· ~-:.. C: sho11ld. :.1ot, ther efor e , c-:iile.!'.r L1 2. cost 

C'CCOwltin::_. system to be .".T )roved by the Administra tion. I would 

suc:;aest thnt overhe<'.d b e -: 1li ed. i i1 -.. li1i t co st s e~th r r:,s ~ ~1e rcent ge 

of t he direct l n.b 0r cost , or r>.t r. ,_i ven rr:,J.:; e _ ;')er direct l abor hour . 

I would ~1e so t~ lly ~l rcf r t hE use t'f the seconcl. f'.l terna ti ve. 

3 . Accor d.i nt:s to ]Jac;e five , dir e ct m"'teri 1'.ls shr.ll be che.rged_ 

into costs o.t t he In.c'l.rJ: et j_)rice ili ~1g <>.t rmy time within thir;ty 

day s ·1rior to t he dc."'.te of s~ , o:c ;:.t ['..CtU<l.l cost if :;::mrchr"~.sed within 

four months of the d;-:,te of s,_,.lir, h~chE!V-8f is J~e ,lower. This ~i ro­

:_-:> o snl restricts t he _) e of ttw 11 cost ('Jr :mt"l.r ke t, whichever is _lower" 

_ _ .ru le )r ~c;ri;b ed b::_ Office Mert_g:f_'p.i1dw-n 265 . .A,n i ndi vidunl mr.nufn."cturer 

should be ~)c it ted to chE'..r :_.e his I·c t e riP..ls into ~) reduction a t P..ctu.<>.l 

cost , rcbr.rdless of the c1c:.te of 18 )Urch se of those mat e ri c::.ls. No 

doubt, the Co de Auth ori ~r L'"1 t~1i s ~1 .r0~ o se.l v!i shes to Jlrevent a rnanuf c:.c t u.rer from lroducii.l g C'.l'l o]. ci invoice <'.nO. 8-l-:-·. im t he.t the :materi~ls 

billed ther eon wer e 2.ctuRlly ern:-"l loyed L1 :. l~e m:'.nufP.ctu re of the b C1.g 

in questi on. 

The fol lowi ng .revision of ~he Cocie Au;th9ri t y 1 s p rOJlOsal would 

b rine it into hc:.rmony wi th Office Mer,1orandum 265 r:,nd t he sr.me time t clcc 

CP_re of the si tuc\tion whi ch t he Code Authority ha s i i.1 . mind; "Price a ll 

direct er s for the cost formula a t original cost or a t the mP.rket 

~; ric e _)revrdling r>.t c1"'.t e of s~ , whichever is the lower. A member 

who cl a ims tha t his r c:..w mr.terifl-ls wer e 'lurchF'.sed four months or more 

p rior to t he dA.t e of t he sa~ :. must b e 'i-ro'xtrcd to :)rive ' his contention 

from his :)erpet ual inv onco:-y or simile.r r-;cords. Otherwise , it is 

assumed th .. "' t t he f irst m0..t eri r'.l s }ll.lr chc?.sed wer e used· in the mP,nUfC'..cture 

of the enrliest lots of b<'.gs." 

4 . L1 order th then; m y be no confusion, the follm'I ing stE'..tcncnt should r.ppEoe..r i mmedir t ely below the ca:·J tion "It ems not to be illeluded in overhee.d or i ncomell on PP.ge 11; "The e~l en se items shown 

herein sha ll be excl uded in the determinF'.ti on of the costs below vvhich 

se.lcs shr'..l l not be made . 11 

5 . Accordin._, to Pa._; e 9, t he cost of re-·)r:,irs t? ~g s shall be included L1 the f;-ctory overhertd e)\'lens e . Many co st n.c.;ountl,'l,nts would 

insist, with propriety, thit t he exnerfu e of r e'ID.iring b n.g s should be 

• Co • ' l1sted c?.s Fl. sellinc:; ~1d A.dmintistr:--,ti ve • ex;lense. The incli vidu,"'.l IIk'"1..nu-

- --- -: ct~ s>lto~Ld_fcel_ fr ee t o iilclude t he-- cost of re iring gs within 

t hC1.t c l a ssif ic;-:,ti on , with th-o :mderstC'..nding, of c ourse, th~. t b. proortioneto l~ e of the f a ctory verh e~d shoul d be a dded to the items 

listed on P['..be 9 . Any ii1c0me der ived from the re1J~ irinc; of b['.g s should, 

of course , b e r>..:i:)lied ag['.inst the cost o.f re~ iri~b r- s for the _1 ur~ osc 

of cloter1 ining t h-"' c-m:::mnt whicl1 sh ould lle inclnded in f r.ctory overhead, 

or in the <'.dr::lini s trC' t i ve r.nd sellii1g eX2_lcnses. 

6 . Acco rdi ng to Pace 9 , t he "deJr e cin tion" of the finishe d goods 

inventor :"'.t the close of the f iscA.l ye:"'.r shou ld ['.lJ:)C'.rently be f i ::;ured 

9811 
- 057-

L1 the cost below v:hic:1 s~'les JTll'l.;- ~:ot be JW,de . This ·lrovisio1 is obhectionable inPs<'lnch as it \'lOUld t e:r2d to int:. od·1cc losses of <' S"')CCUlP..ti ve nc:.tu.re vri thin the cost belovJ vthich s<'..lcs ITID_y :10t be mttde . 

Furt hermore , tl1e :)ro:>o s::.l mp}.:es <'. st::.t eme.1t :1hich conflicts vi th 

Office !·emorandum 228- 3 , m:.mely , 11 1t is s.:..fe on the .vcrr>..6C - - for 

any r.k':..r..UfE'..ctm.~er to fi gure fifty per ccn.t dc:lreciatio:n Oil his inventory 2.t the end of tbe yen.r. u 

11 Dc:)recic>.tio:l of L:.ve:1tory 11 <'.s used }1C~rcin refers to the loss 

of v.-:..lue in unsold merc:1C'1nC..ise attributPblo to styl e chrngc s , bro1ccn 

or od~ lots, etc. 

7 . T:1e followinb r.ddi ti one l restrictions c.;:d exclusions from 

cost should be Illc.:.de r. ')r..rt of the st ~. ndE rd formula : 

ow:a : dw 

9811 

P.. . AT.. ' y c.mo-.....n t of depreciation shown o:1 the books 

i n excess of th.1.t allowr.ble for feder a l income 

t nx :lur--,oses. must be excluded. 

b . lo reserve for contingencies or similPr item 

wnic:J. docs not r 0'1resent rec-son .... ble C1.scc· tpinc-.b le 

cost , b'...J.t ;-ncr ely P.n estimrttc of uncertf'.in 

eventualities, is to be included. 

c . Recognition must be 5iven wherever necess a ry to the 

i nfl uence U~') on costs of differences in ITJ['.rkcting methods, 

customer cla sses, and distance from t he point of 

delivery when goods nre sold on Q delivered basis. 

d . Losses on the S{1.le of C['.pit{1l e.ssets s·u.ch <'S l end, 

buildings, equipment , et c . , shPll be excluded. 

r; . Pur chPse discounts m:'l..y be a:lJ)lied ns R redu ction 

of the cost of the commoditi es or cqui)Jnent bought . 

f . Holdins co~l<'ny devices or ~ff ili P.. 0d rcl ... tionshi ~) s shou.ld not ·.Jermi t P member of <'!1Y ind_ustry 

to eva de tl1e s·liri t and ·mr-1os c of the no-sellingbelow- cost )revisions. 

g . I n the event tha t <'. member of Rn industry engages 

i n other nctivitics, his indir ec t costs S~Lll be 

locC~ tcd to t 11e scvcrnl clPsscs of :1 roducts on 

a fFdr or equite.b le b2sis. A cost a ccounting 

formul2.. v1hi ch Drescri bcs such method of <' llocr, tion 

should not conflict with the simil2.r ·1rovi sions 

of e.ny other cost finding method which mny, in <'.ll 

probability, go vern the accounting methods of e-n 

i ndi vi du<'..l ·1r o due cr. 

( Sle;ncd) ORT01T • BOYD 

Orton Vl. 13oyd, 

Co st Acco ~tin~ Unit , 

~oscnrch ~~~ Pl!.nnin6 Division. 
- 350-

Eri ef - Styl e Pi r~cy 

9811. 
Section ~: 

- 359-

II "~ II 

~ 

PRCGRK.i 

*** 

A de ci sioi! o'n t:le ··I.e:1c'mcnt to the 8de est :.bli s:1i :n{ pro t ec tion 

f::".inst C...es~gn _pire:cy,. A selection of e ithe r of t!10 two Methods (...,_) 

or (b) : 

( "- ) Design ir cy is hereby decl·ued to b e "' n unf"'ir me t hod of 

competition . T"ne t e:::-m 1 de~ g~1 ' ..., s us eel l:lerein , s i gnifies desi gns 

"'.rtistic or orn"'.ment - 1 -nd not fu:1cti o:1~.1 or mech"..~1 ic l. l. Jo member of 

the 1~dus try sh.".ll it ~. te or co·· ~, or Cr'.J.,e to be it ~ted or copied , 

an~ design orisi:1. ~.1 in its ~-Jplic~ ti o!1 t o ~ny ?'l:coduct o: tt~e i nc.ustry , 

without tl:le c0ns en t o-.1." t l'.,_e o 'Tne _ r t -~~e reo f , 1 · f : 

9811 

(...,_) A c~r \''inr, , '•)flOtOti,!':'.:•.< o:.· m0c"e l of _...,id ci..e<>i[;:1 l1''.S 

been rec,iste r€;-:1. vrit!:" c.isi.·.te r c s t ed :.C. i:1i:-~rti".. l "' :._.CllvY 

to be desii.:- D"..ted ·by the oc~e ri t~- v.ci th L1e "'~1I'r v1.l 

of t he Ad.~:i:n istr ". to:c . I:1 r e, istering _uch C.:.es i cn , t he 

reg istro..n t sh"..ll i- di~ :1- 9 cle...,rly t' e T•" rtic'l.t.l·' r or p~.rticul ..... rs _in ·1hich suc1~ es t~ is ori-_,il .. ~l L. its ..... pplic"'.tion 

to ··.ny pro{uct of tf:e inC:.ust_·y , sl.~ .ll , i:'1 "JC.ition , submit 

..... swor.1 st te ::ent i:_ -,:~ ch he c ertifie s t "l" t to the best of 

h i s l;:-1ov:l e dge ·-.nd b e lie f, sucl1 c..esi g11 is L: f ".ct oriL>in" l 

".S "for es".id , "::ri sh...,_ll speci fy t he d ".t e of co:1ce11tion of 

cuch design . Such 0 i s i:!teri? stcd .... nd rr.~1 ..... rti;.l "'.:,ency <>h ..... ll 

.".ccept ny desi(:,'n subwi tted for r ec;istr".tion "'.S ·-fores".i d. , 

..... nd. slP.ll issue r . crt ifiC ~e o:' TC'5istr tion to t::e re.:_.istr".nt . 

(b) s~ d de i g:l or s...,_id. " r ticle to "',lie.: s id G.esi gn is 

r-.:p~J lieC::. o:;:· L;, Yi:1ic.: s··.i C'.. ce(" i {,;1 L e_.., odied e~rs tne ,:1 rk 

11 ?..egistered FRI\. ·'e sign11 or 11 Rcc; . 1'-A Code tun~"cr' , "'.nC the 

d"' te of re is+r ~t iort ~ 

(c ) Provided , h~t t~e ~rah bitio~ herei~ "~ st ir~cy 

of ".11J dc si~n sh~ll eJ~ire ri~ ont s fro~ t'R te of 

re istr ".t on the r 2o f . 

(0.) .An Arbi tr --.tio:~ :bo"' r d ..,h .... ll ·De t u:p to rettle diffc~

e~ces occ"'.sione~ by conflict~ in Cesign or priority of 

ri c~1ts 1mder ~ &i s tere d c.c si 6 n • After ".11 no ... (" i ble effort 

h"s ·oee:'l e xe r ted to ··:.mic" ol settl e sucl differences , tl:c 

Arbi tr "..tio::.1 :So'·.rd ,.,'c1~ 11 subr'i t to t:1.c A .mini t r --.tor in 

vn·itint?; ~. st~te, .e:1t setti1 , .' rt ~1 t:-.. e f".cts :•Jt:rt·· L1i;, u tnereto , v1ith rcco~·ru·e!1C:..~tio l1S ~c: to Lc cesir ed ".ctio· to ~ettle 

sach differe~c~s . 

(e) Not~in( cont ined i~ this Article VIII sl~ll be construed to libi t Lle lJr otec tio";, .... _:'forc.ed. to c.csi :1ers or 

1'1 ..... nuf .... cture::cs L1 1espect of cesibns u::dc r exi..ti:.t::. lr.\'' • 
- 360-

(b) '.Ihe C0G.e of .?c> il~ Cor:1:oe ti ti0::. for t :1e Le.dies 1 ::. oag I ndustry 

be D.lle .1c,e,.:.. b:,.· L:sertL1(, L:. saic1 Co uc t~1e i'ol1ovv'in,~, p rovisio:J. : 

Section 2 : 

(a) The Cod.e ll Ln l·i t~· s:nc- l l est ·•"'olish ::-.:-:G.. ~1:3. L~t •. i:n O}l 

terr.s c.'.i.1d co:1C:itio:1s -,""~rescri.be . lr,. it, e. Tureau f or ~1e 

::leg istre.tio:1 of Ori.·-Ll<.l Styles a.::.( ~esiGns for ~1e }Ju.rnose 

of defit.L {__ P.:'cl est t- bli~LlLl{; pTi ori ~r of ovv-aershi -, of such 

sty ~s 2.i.1d. e~i f,i. S, snc~1. :-ce ~;; ist::.·at on to be rima fac i e 

evic" ence of L 1e orit;i:;.a li t y EG:d Ov'r :.ership, for a ~1 erio d 

not i n excess of six 'Tio;.:ths frau the C:u.te of recistrati o11 , 

of sai C::. stylws a:.-,d- desig·As. 

(b ) Sub,ject to the ruJ.e s ant re [:,ulations adopted by sai d 

burea.u , any member of L1e L1c'.sutry ma;-1 reg ister wi t h sai d 

bureau any ori[.L :al desi E;n ~er~1 c~1 he hD.s created. 

(c ) It shall be a:1 u;1f2.ir r:1ethorc of col~)e ti tio·;:. to mal:e, 

use , se ll, or a dvertise ::). co---.;) of 0.Ey orici ::.c:.l s t yle or 

c.esig:1 of ;:;. not ~ler so rec;istere0. , or to c a use ~1e same t o 

be c.o:c1e ct.ur 1~ t ::te sai ( s i x moi."lth ~- eri od , ii1tentio;.1ally 

and with --l· i or :::1onlec'.t;e a;:.C.. without ex~;Jress li ce:1 se t herefor ;:r<.::.·1tecl. by the re.::;istereC:. O' .T.er of t J.1e style or desi~n . 

(d) A substantic: l r esee1blan<;e of the alleged. c opy to t he 

re.=,isterecl styl e or cl.esi g;1 sha.ll c onstitute pri ma f e.cie 

eviG..ence of an intent to co~y wit h p rior l~ow eG..ge t he reof. 

( e) T:1e cost of J-n L1isterinc the -('l rovisioas of this 

se c t i o:1 by t l1e Coda Aut!1ori t y shall be borne by those 

Ttlembe r s of L1e i nci:1rtry v•ho register tl eir styles unc!. 

C.:.esit;ns wi t~1 the bureau nere i n J:'! rov i ded . A regi stration 

fee mP.y be ~1f'. r.:: ed b y tD.e Cocle ..t--..ut:1ori t y sufficieilt to 

cover such c ost . 

(f) T'.:e · rovisio::'ls of t~1is section sJ.ml l i10t -becone 

operative u:.1ti l the ru.les -~ ::.1( rec. uL .. tions ·:)roviO..ed for 

i.1 erei!1 h3.ve ·beea c:.doptec-:_ l)y the Code AuL1ori ty Emd ap-

~ro ved by the C: .I ~ni s trc: t o r. 

(.c·) Rules a :1d rec;ulations :1ece , sar~ fo r t he Awninist:catio:l of t:1is :wovision of tl1e Coc~e n2.y b e ado:p t ed 

f rom tine to time ~r the Code Anthol'i ty subject t o 

disa~ ·w cva l -b~ 7 t he .Administ atol~ . A violation of said 

rules and re t;ulati m s shall constitu t e a violation of 

the Code . 

All attempts to obtaL: J..i'ederal l e G,islati on }Hohi b i tL1;;-, -esi6'!1 

piracy :ave so far -i) een Ui.1success ful, ~- :d existi!1G l aws do :1o t a}Y)ear 

to -, y oviC.e e.Cec1uate p rotect i o!.l for c esicns. 

Co c'.es of Fair Competi tioi1 com1) l ete l y c:tmnge t !1e si tL.l.".ti on. l) 

Coc es na::e the prot ec tion se l ective; tl1..1.t is, i n .custries v-ri shing ~. rotectiOi c9n obtain it; <:mel i nc u.stri es -,} ic'll cl.o no t Hant it are i10 t 

9811 . 
-361-

compelled t o accept it. 2) Any i ·1dus try i nc r_ orati i1C a design piracy 

j)r ov i si on i n ::1. Code secures legc!l.l enf::Hcel'~ent once tl1e Code is a:oprovcd . 

3) The inC:.uc.try i s frt:Je to ·et 1.:p Lt its o·rm rP..n:;::s or coo··--cra tiv"ely 

the r e. istra tion . :c:,_cl L_ery neces :-a:c~' to obtain actu.1.l "·:cl conrplctc ·: rotecti on . 4) Arbitrati on c an be used t l) insure j:cst and. speedy set.tleme·1 t 8f ;:,.ny controversies i nvolvinf_, '1rotectcd c~esit,ns . 

Section 3 : 

The :·"ro' lera Ji' rlesif~Y'- 'Jrotecti o:::l. i · llot or..l-;,r the affair of competitors withi::1 J.n ii.1d.ustr~h The orici·11ator of the design , the seller 

an(, Ule ·:·.Jub lic ;:. 11 hav e c-.n i:;: terest . O~ly a cei1tral registration 

bureau car.. l~otect a ll of the e L.terests . 

f '"he i n.0.ustr J sets ~~ its ·::> vm bureau , it nn: st work out tnc 

stm1G.arcls , ~ e j)rocedure c·1C:.. tile :-.1et!10d • Mo s t imlustries have not 

t he e:;;::perts to clo thi s . C::msecue:1tly L1ere v.roulC. be a varict., of 

me t hocls < .. mG. rricl.e c~ifi re:r:.ce i!-1 a:·cn inc; me: effectiveness. ~hose can 

be avoiG.~d L: :·· central ret_:i s t:.:a t i on bu~~€: u . 

T' .. e cost of nw.into.i nL·t:_ ~• bureA.u i ;_ e-.. ch i:1C::.ustry to coio.uc t an 

ex-pert ret,i ~ t r2.ti on search 2.1F~ ~J.e c :ii.1,·· s ys ter.: , i ~ L1 :!lc:::y Lls t 1.nces 

pro .n.i .b i ti ve . Ui t:1 a ce:1 tral l'8[' i s t ra tiol'. bureau, the L;.dus try assumes 

little o:c no fir1ancia l ::cespo·.· si bi lit., , t e l•!el11-bers ·rho rec;i s tcr artif'lco 

bearing only the c ost :::Ji t lle ir ow11 se·•.rch. 

The secrec,y neces ary to 1::::t'Jtec t q, rcc,istr-1· le design i!: rarely 

o·otaina.ble i n rm L:cl1str;y whe::e 3. ·bureau is operated by com~Jetit rs. 

The s lighte s t lea.1: m~: y Tesul t i:.1 tlw co·,-.y be ing on the marl;:c t before 

the o rig inal cEn ·oe protectec!.. . Or:ly a ce~ tral registrntion bureau, 

conducted ~1c~er neutra l ausp i ces , assured co.nfj cl.enti<d sc1·vj cc . 

Section 4 : 

11 Desi&n Piracy Any me1:1ber o:: t_le ~C'u try f!ho creC'I.tes or cJevi"\e" a 

sty le pattern or a desi gn p<tttern :-:1ay f ile for offi cial rceistr2.tion 

with the Pattern Regi tTe.tion Eu.reau a~'1pr ved b.,· the Code Authori t of 

~1e I ncLustry , a s'-Irr.:_J l e of t he r:cvl e •).::.ttern or esign 1jatter11 y q,.ttach ing t :1e reto a .. 1·eci stra.tion carci , whic~ , l.yJon c-:11 lic"'ti o:1 , shall 

·be furnished b;y the Co de Aut11orit'r, Afte:: such rec;i tration , o.nd for 

a p eriod of a t least s i x (6) 1:1o:nths , no member of the Ind1.1.s try rhall 

·in any manner or fo rm , in the current interpr e t a tion of the Indu3try , 

copy , i Ti1 ito.te , m~e or :eal i :. sC'.id. styl e :•c. •. ttcrn or design ·oo.ttern 

N"i t hout t he license or co ~1 sent of L1e re :~ istrant , excepting v1i th the 

approv3.l of ~ e Arbi t rett i on :Board a l1eroinCLftcr set forth. Said 

rec;istra ti on ca rd. sffill i nc l ud.e t he fo ll oYtin~: : tne nrunc ani o.ddrcss 

of t he r e:,i s t ra:nt; Ue elate of :f ili :1~~ Jf tyle ~1""tter .. 1 or design 

pattern; a brief description of the -nerc:v..1.nclise , i11cludinc e("·,)ecial 

r eference t o its Cistint--;uishi nt .l~racteristics 1 "'.nc' a clescri;Jtion of 

the rnacl.line ol· rna.chL.es u~w:1 "hich ~ rt!er c:1andi c is .. aPufacturod . 

I mmediately -c::_1on such rec_,i s trat ioi.1 o:L' tl1e ::- tyle })at tern or c.esign 

pattern , said Bureau slu:·,ll r.1a.l:e or cause to · e .. 1E1de e .. full and complete 

search. I f after such s earch 1 so..i0. :Bureau fi:1C.s t.~.u"' t t~1e ,... t;,;le pat tern 

or de sie;n pattern i...: e~ title d to ·be r F; isterE:d. , it s1nll ma~-:::c ap··ro~iriate 

9 811 
- 362-

entries of registration , it sha.ll r:l! :~ed y botif y said registrc:mt 

t l.·J.t cJ.ue r 8e;istr·:tioi1 1:e.s been :.. ranted. If 3.fter such search , said 

J3ureau fi:'!ds th:'l.t t 1e style -,)C_'l ttern or ::'.e si c;n ·. D.ttern i s not e1~ titlect 

t a be r c.zi s te rec

1 

.. , it shall a ce ~rcli -.~_ y .10t i fy e CoC.e Autnori t y a ncl 

t he re c i strant . 

I f t he rec;istnmt i s i10t s ·!. tisfiec:_ '.'lit .l L l P :fL·l(::.i n.· of sq.i d Bureau, 

the Code AutDori ty , U'Y) Oi1 request ~ t:1e rc is t r2.n t , s:i1all refer t :1e 

matter to an Arb itrati on :Board for fi!~e l deterr:1i1mtion . T:1i s :Board 

<>hc.ll consi st of t ·.1re e T'lenbe rs ; ~'. e t o be 2.esi : nated by the Code Authority ; one to ·be (cesi.c'nate d by t he H', i s tran t ; anc~ t he t hird sh?.ll be t he 

Administration !iembe r of the Cocle Au L10rity t o serve as Umpire . If the 

Arbitration BoarC.. de terrnL1e s t G ..'lt t:I~e s t : ·le p::1ttern or Ci esi g:n --)at tern 

i s entitled t o ·oe regist e rer."_ , sai d Bu1·ea u sh::>.ll i mnedia te l y comple-te 

rer i strati on ." 

Sect i on 5. 

9811 

·· ·:·~--: s to be Cecic~ec-:. b~~ t :1e co•.11ri. ttee are ~1e fo llowi ng : 

J ·st.ly , it vroul d r .. eci d.e -,_ r e limL1ary q1.lestions v•hich lie 

·' ~~e y Yri t :1i n the scope of L 1e -~c: us try su ch as : 

· .' . ?. t constitutes regi strable c'.e signs ? 

··: .. ..., r how l ong [', el~i od. S11ou l cl. pro t ect ion be afforded 

t-': ret;i strati on ? 

..; ) ~1o ulc~ suc:1 r eL·i strati o;.,_ be rel"levw.b le a nd if so for 

how l ong a ~· eriod ? 

d) Shou 1 d. O\·lle rs of (.e si c;ns be --.ri vi e~ed to lease t h em 

to othe":' t 18L1 ers of the i mluSLt r y ? 

2 . SeconC::.l y , L e COlmTti t t ee 1:roul C.. c,_e c id.e w~"!.t. t f orm of reGistration 

Yias est sui ted t o t!1e C: us tr ~r ~~ G.. v!hethc r t_ set up an 

L1c1.ivid.Uc1.l Bureau Jr t'J use 1e e:~ is ti:-.1{:; I :c1o.ustri a l Desi L,n 

:.e··istrat i 8:i1 Bure'lu. ~~ 

'. 

3 . If t:L1e de ci si o:1 i s r:1acle t ·) use the exi s t i11,:::; J:;ureau, the third 

f1.mction of the coruni ttee woul c

1 ·be t 'J a.rr ::J.i1f;e vfi t h the staff 

of the :Burcc>.u technical de t a ils of ret i s trn.t i on such as fees, 

tine "..ll 0wed f01~ sec>,rch i Lc t~1e f iles , · · c:. other matters affecti!lg the n~ocesn 'Jf re.:_ist:nti on i n ~1e i ndustry. 
~811 

- 363-

CO!TTE:TTS 

CODE OVISI Ol~ 

? TI0:0LE' : 0:? u:C SI ~; ? IRACY 

A . .:ERI CAU A.,.-q:siTRATI Oi:! SOCI TY PLAN 

:-~ :-.AYLEl:T PLAN 

T::~ EL'aE 11 P iJL; 

RESEARCH & PIJG lTE JG DEPA1'J: lE!~7 ~~ • .rt .A. 

P3.0CEDT.L"CS r 7 ?A..:.-:!:iLIJG CASES 

F?..OVISI C- !AL :n.:rLLS 0::' .L·=:E J~ SI Gl· Rr IS 'I'F.A :;:-· o:i. IHJREAU 

COl :1 ::C2· c:2S :CY COD~ DI RECTO:t{ 
-36 4-

There is :•rere;1ted 1 e'~''e•ri t11 10·· c ~;,1 s Lc.eT.._l.ti )11 by the C') 1mi ttee various 

Lethods ·o_- \'f:lic __ c.nti:o l of St~ le Pi.tr:J.c~r r..ir.nt be estc.'blished for the 

L1clustry. I:1 -nC::.e r ~"'-;t t J.e L.0ustr 7 !ni ;·ht o·utai n a r:1ethod best fitted 

f or t .1e Ladi es ' ~-=-"' ;1 -b a(.; L ·-.:J.us t ry , v;e eq- ~est ed. Le art:ne :1t s of t he Ac'J.mi nis· 

tr ~. ti on to ?rite ·~- -~l )Vis "Y:'_ t n..: .. t v.'OL.lid. 'e c: .. cc e~)tc~ble to the Administ!i .., 1l:i.on , e.n: a.t t :1e s erne time iZ'ive t he i :d>11st ry the op:):>rtuni ty to esta .... ..~..i sh L'_c1. CJ!ltrJl t}·:is i JjJ- ::t ~.:::t f ·_,_j"•c t i '):: . ·rne1·e .:::.re --) resent ed ~'1erevri th t J.1ree ~:n~ visi oi1S . 

PI ')Vi s i ol1 'h . l SU[,{ ested b:• 1e .n.rbi tro.tion Society of America do es 

nJt se t up i 11 G.et?.il n~r rules c.:.1C:L ::c·ec;ulnti :ms , but 1·atner a nethod 

of pro cedure . It is :.10 t cert _i n. t l· ·.t t l1i s jJr'Jvi s ion vwuld be accepted 

o·.- t 11e ~J p·u e1 t of t he Au;1ii1istrs.tion s L:.ce it cLo es :1ot e xclude infrLl: ement on :·)c.tterns ~J .. :..c'. co·o ~· ri t,; hts . 

P I") Vi s i o:r.. :r0 . -~ w"'..s r er./.e r eC. "v ~~ : Ir • .::::;war d ~~ayc'..en of L1e Plan·1inc; a11d 

Rerearch I.~e· g.rtme:;.t yf t he Ac.:-:lini s t rat i on . This ' 1 rovi sion is mo re explicit a:.:c:.. 1

:;ives Greater de t .:J.ils for t l1e :ne t :DG. of establishing and 

mai nt.C:Ji:'ill;S of f!Uch a bureau f~r :ce .~; istratim1 . This })r'')Visi on would 

be ar::ce)t;.'bJ e t o the AJ.ministrat i -J n . 

P::c·o v1 : ~-=·--:. -~-- ,. ~. V•::' .. s wri t t e:1 by r1~r . Elwell of t he Le c a l Depart1~1 en t of 

tile .d' ,_,_: .:·- --r, ·-~ J :1 a11d we be lieve one mo st sui teci t ') our il dustry • 

• • Y ., :.=.1-. _.:._ __ ,·;:--1ully i s L1t erested i n t he subJect of Style Piracy ar..d 

J.1c h ·. c·J.,~ ~-·._0.. u:1C. erst am~ nc.; of what i-..1r us tr y requires tJ ·l')e prot cctJr .. ''·-:·y: ::1- ~~le Pir2.cyo Lr o Eluell 1mC:.ert')')l:: to Tite this Di8- . ~ 

Vl"::. ~-- , _. ·,~ r;u.r ·.1>-.rti cu!.. e::--...r :cJ. eeC::.s a ncl we ? :re or t i1e opini on o. t it 

'J~::· J.·. ., ~ < s ~1 0S !: i o::..-3 the requirements of our i nc'.us try . This 

)TJ-,' • .. ·_ - ·-- '_: --:l e a cce•"1 ca·b ~:; ·c:J t~ e Let;a l Departr.1e11t o"!': t l1e AcJn.i n i st ~b -,- .): : 

,e ,;.";.8.~'~3 lc_·,-tJ 2s • .J.rt •i ul~ :ce-·>>J rt LJ.f orr:l' ti J::l furni shed. by va l~ ous 

S')"l..l.TCt"S vrh) s..re 112' e1. ·-·· eci_ i ·: t -1f.· TJ '~ of re t:;i s tr:1..t i 11 of desi.:;ns 

f Jr v.:--:cicus L ·_(ustries. T~1e se eJY)l~ s outlL1e t h e me t !1ods and. r.1achinery 

f'Jr ~1e esk:olism.ien'u J:. :::.~e[i<:tr<-:·.tiJ 1 I ') r st ~.r le s a:1C::. cle~ cn s vihicl1 are 

TIIJW be L1L: 0perat ea. ·oy v<::.ri ous iDcl.ust r ie s . Al so Ft special re)ort fr om 

t :e Jcsi[;n t.e.=; st:cet o~1 Iureau COi1 t a ini:1.C a 11 estimate -J f the costs and 

t :1e .1an:..er of e.p )l y ine; tl e"'e c osts t o t :·e ·11em·b ers 'Jf t:1e i1:c:tustry who 

wi£2:1 to avai l t hen selves of t !1e ~r·ote cti o::l of t "::le Bureau. 

It must be ur.dcrsto-J G. t ha t t he o:1 l y me t hod of e:,1forcement is t he Code 

of t ,1e L _c'nst· ~· n:.:d t h:-'l t i :il orc'er t 'J establish Styl e Piracy f or the 

L c'Lustry , tl :":.t i t will ·oe ne c ec:sary t J :-:.s~;: a:nc~ ')b t e..in fron t n e Administ :cati'Jn prJ}Ier a,Je11d:·1e.1 t s t J t 'i: e Cocle as p::c·'Jvi d.eG. f or 1y the Code. 

9811 

A. 1 :it t e:1 thal 

CJC:.e :Jirecto 
AR~ICLB VI I I, Secti on (j ) 

To undert al:e , in con junc t i 'J 1 wi th t he C'Jde utho ri ties of related 

i ndustrie s , o.n i nve s tigati o!l of styl e piracy and t 'J r e c ommend t o the 

Afuninistrat or , vv it"1i n a reas onab l e ·::'l e ri ol. 'Jf t i me , a:•p r 'Jp ria te means 

f Jr t he regulati on a nd. c ::mt ro l of s t y l e p iracy , whi ci.1 recommendations , 

up on t he n~ l of .t he Administra t or and aft er such n otice a nd heari ngs as he may -.) rescribe , shall become effec t i ve provisi ons of this Code . 

TH:S PROBLEU OF :JESIGN PIRACY 

I ndus t r y has l ong s t r ucgl ed vii t-p. t he p r ob lem of design p i racy , and 

t he p r o t e cti'Jn of Cl. esig:11 s i s nov1 a.clmowl ecle;ed t o be a v i t a l f a c t or in 

com;~e::c l life . The cl ~ p ira t e i s r e c ogn i zed i n ma ·1y i ndustriec 

as a menac e t o :p r oL_,ress ·a11C. . t o p r Jf i ts . Thou ,. a.nC.s of r.u:muf act urers 

1ho empl oy a desi Gn i nc, st a ff or buy oril,i na l ci.esi t;n s have t o suffe r 

:1eavy l osses ·uy t he t he f t of t hose rlesi e;n s a :1d t he i r repr oducti on i n 

inferi or materi al a t a ap~r c ost. Th e wi d.esp r ead ~) ti ce f s t eal -

ing desi gn s does n Jthi ng t o s t i mul a t e ri in l creati ons ; on t he c ontrar y it cheapens a Dd deba se s t hG :. , a nd its cost t o i ncus try i s e stimated a t mi l lions of <iol l a r s a nrru,-':\.lly . 

As a resul t of a survey unde rtaken a t rhe r equest of a number of 

industri es , t he Ameri can Arbi tr:a ti o;.1 As s oc i a ti on, r.rhi ch i interest ed 

p rimarily in t he s e t t l ewent 'Jf i ndu s tria l co ers es , establi shed 

a iat ona l Counc il "J!.l De s i c,11 PrJt ec tion. Th i s Counc il a f f ords a neutr a l 

medlum thr:::mc:"-1. vihi ch trade ass oc i a tions ca n wo r k out L1e i r design piracy 

problems under Code s . 

T11e v10 r k o f t :1e Council i s <l i r e c t ed by r,1en an6. L1dustries vi tally 

i ntete&&ed in t h e p r o t e ction of d.esigns . Fi nd i ne i n opera tion an I ndustria l De sign Tlegi stra t i on Bureau, ori c;ina ted by t he :Iit1- i ona l Federation of Textil e s , I nc . , v:hi ch v-ras op e n t o a.l l i ndu s tries , the e ouncil 

estab l ishe d coo·oe r a tive r e l ati ons a11d has uut ~1. t :1e f ollowing plan ~ ~ 

f or t he c on sidera tion of i ndus t ries ~mv .:; 'Jr i ntcndi:nf t o ob tain p iracy 

pr ov isi ons in C"Jdes. 

De~ign Pi rac ~~ ~i s in od~~ 

Under t h is Pl a 11 , t he f i rst impo rtant step i s t o i nse rt a cle si e;n 

pira{fy clause i :1 t he Code ; a :ncl i f the Code i r a lready a p})r oved , to 

pr op ose i t i:1 2. s upp l eme nt c 1 C'Jde . The Cou.r:1cil ha s c'Jmpiled t !1c 

cl auses fr'Jm ap:;_:> r ove d Codes f ar ubmi ssi on t o i nc.ustries i n te nding 

to use c l a u s e s , but eco~ s t he f ol l o •inG as bei n~ simp le a rd 

effective : 

3811 

Ho memb er of t he i ndus t r y s h9.ll i r.1 i tate , siT!1ul at e o r 

~J op ri te any oric i ne.l o r unique ~.. ef en or st yl e or 

any tr demar~c or name or b r and rec;i to red wi t i1 t h e 

nc~. ustry or its d. e si c;natcd c:~;D en ; ancl :my "'UCh i mitati on , simul ati on or ')~• opr at i Jn shall consti tutc 

an unfair trade p r a ctice an<i a. v i ol at ion of t ilis Code . 
-366-

Ce n tral Indust r i al S"e's ~ ~e:d r ti ~m 1-;ureau 

The Council be li eve s ti"k'"' t t~1e next step is fo r t ne inc~.ustry havinc 

uch ·:-,re> tectio!1 t o use a central I· _d·u.stri a.l Desi g:.-1 ~eg istratie>n Bureau. 

For a-ll i ndustrial ~):oups l1A,v i nc t he ce>nrnn ·problem e> f C:.esign protection 

such a bureau i s entire l J practic:1l , e.x-0eclient and. less costly. then the 

esta.blishment of a se-.-~ "r te bureau L1 ea ch i ndustry for the following .;.. 

r eas:)ns : 

1 . The prob lem of des ~n Dro t e cti on i s n:)t only the a ffa i r of 

co:mpe tit or s vri t ' L1 an indus try. T .:.e ori .:_ ,inat e> r of t :i1e c:esi::--·n , t i.1.e seller 

and t he public e..ll have <'11 i n terest . Only a ce ntral re{·;i s tra ti')n Bureau 

can pre>tec t all oi thes e i nt e r ests. 

2 . I f each il1d.ustry s ets u.-~J its )Y;n bureau, it .nust '·''o r l: out 

t.1e standards , t he ') c:ed"L~ re 1.nd. t he me t he>ds . f:i0 st i:1c,ustries have 

n·Jt t he e :xpe rts t ) d) thi s . G:)l1sequentl;y tl .ere vroulC:. be a variety of 

we thoC:.s anci wide d"iff e r e nces L1. p l D.lmi nL; a21c. e ffe c ti ver:.ess . T:tmse ca."l 

be a v e> i ded i :1 a centra l reg istra ti ::u bureau. 

3 a The c ost e>f i!lainta ininc; 2. burea;u. L l each indu~ tr ~r to c onduct 

an exrert rcE;i stra tion "earch ancl he ~: nc; syster.1, is L1 many i nsta::.ces 

p r ohil1i tjve(\ · With a ce: tr l :cee;i stration bureau, t l1e i ndustry assuu1es 

little: o:c no· fL1anci a l responsi .b i li ty, the r, e1:1be rs whe> regi ster articles 

·bearii1C only t he· c.ost of t heir 0wn so§.rch. 

.) 'Jlh e necrec;y :1e cessar:/ to ·:rotec t a re gistrB,ble clesien is 

rarel ~r obtcj .l1ab le in an c~ us try vrhe re a bu,reau i s O}' ero.ted b- competit o"'s w ':-he: slif)ltes-t leal:: may r esult in t :i1e cop? be ine; on the marl:et 

"be f ore the Jric i .::r::..l' ca n ·be :) tect ~o.. Only a cen t:cal r ""t;istra ti on bureau, 

conductPd ~1dc r neut r a l ausp ce~ , assures ce> nfidential ervice . 

Pre>tection o7 Desi c ns in the Text ile Fi eld 

The s;_,ccc[:3 of t he I ·lC::.ustri a l :Jesi c. P.ec;ist2:'a ti 0n Bureau of the 

~ati onol !"c:6.ors.t i on of ~exti le · ~1 ., has ·.r oven ~12. t the c Jntr.ol of 

de"si c;n ir ~.cy is a realiza-ole i cleal. A practical s y ste1:1 , such as t l.1a t 

n o 1 i :1 usc t t he Eureau ~ can be utilized by a n indust ry desirous of 

~n·otectint;, i ts C.csi gns . 

Five ~rear s a c o , t he s tealinG of d..esigns in the sil L indust;.y was 

c amnon prac tice . N0w a case of esi tn p ira cy i s a sensational story, 

for the Bureal.l. nas been e.l mos t a h~1C.red perc ent succ e ssful in its 

ro ., ec:.ion of ori :·:L1a l d.esi gns . 

The necessi ·-~, f -:H re ~, ist2· o.~ on is a·"):,arent i n every i ndustry 

havinc; a C:.c <'it.,n ·!iracy rob le . The existin.:; L1c.ustri a l Desigil RegiGtrati on Bureau i s now qvaila.ble t o 0t her L1c.:.ustrial Gl' oups. I t operates t: is wa r: 

First Step Towar ds Pe~istration 

p eratie>n of a rec istration service fo r cl esi e;·1s i n any industry 

i s possible only with t:i1e aGreement of e,ll members of a n i ndustry to 

submit ~"'..1 1 c:;.esigns to a centra l clearin[ house . Shoulc' the number of 

9811 
-367-

d.esicns in use be avc_n11e lrn2. n':;ly l a.rc;e , 

1· :1c1

.ustry ma.y ,·.:;·_ ~·ce t'1~t J,..,l-r r'e 1· - · • - ' ~ ..... - l n ~ ~· ~ ~ t,i:s 1:-

to be submitted. 

a com.'Tli ttee re·"'re ent i ng the 

use arter n certain dntc arc 

Pr8cedure r3.t t he ]U!'eau 

(~exti e Div i sion ) 

(a) Se c.recy - Whe n the o>:rnel' bri ne; the co l ore(} ~:::etch of the 

desi c;n t .J 1e 3ureau, i ~ is i ven t ') t .r1e entry clerk 'J •• o removes the 

nane and sub stitutes a s:nn'.Jol . Tile ~~:etcl'i is t he:r. se"lt t o the searchint; r:>om ...:·ol' c :Jm-9uris on . J:lhe Pnt~~y clerk i the anl y ---.e rs an in the 

Eureau Yl} o l.:n :>ws t :) whau it belon~_ s . ·r1 e_re i _ n ') c~1a:".ce Jf a leak'lge , 

- no no.mes i naclvertently ove ~1 earcl , no buye rs seen 'J? cha1 ce in the 

Jffices . 

(b) t l e searchi r:t roam , 

t J.1e clesie;n is first p£- ograp ~led . The ~1 it i s classified.. undel' various 

~eneral ~ead.ings geo~e~rical, ~l ral , etc ., an~ cr os a- referenced to 

i nsul'e a cc'JJ'acy in search. The J?ho t ogra9!1 n<:;xt g'Je a to "G:he expert 

searchers .-.rho o~Ja. re it with p revi ously fileC: et1tl·~e of its type and 

c l assificati on . I f no conflict i s d iscovered , the si(etch is st8.mped 

as ori g i r..al , sent back t o L:e e!ltry c lerk a.;1d. returned t 'J its J'rme r . 

The ·fho l e ~) erati n takes forty- e i g:1t !lJUl'.. . A day a"1cl. a ni.3'1t staff 

Jf searcile_rs i s emp loyed , for thel'e ,. re ~. t -.-1 re~ent c-one f 1rt:r- f 9ur 

t~ousand Ge i gns on fi l e . 

(c) Ti me Llmi t Re ··ula ti::;ns - ·;nlen t~1e )Wt:er receives his sL:e tch 

arai n , he must be •·repared t 'J print it n;1d r e tu:cn ~ Ii!1isi1ed 11 atch11 

of t he r:1ateria l t:J t~ 1e :d1.:reau ··i t~Ll t~lir't~- de.;ys . Thir i s t 0 rcvcr..t 

m~nufacturers fr' Jri 'J uyin~:- u;l) <1. ~1 the l il:c l y d<:;si( n s fJr years a~1ead 

and to i ns·.rre t h-:::.t everv :~e ai n ·t::e'r ret ister i q inten(.ed for ir.m1ed.iate (_ • '· t,. "---' 

use . Reci strati on i s J~ fJ~ Jne ye r a~~ :ay be extcr..ded t o two . 

(d) Procedure Jn ::-te jecti on :_ If the cec~/)1 aJ)···ears t o conflict 

with a ~· revious erlt ::.-y , it. is i~ecl:eC::. t ,rre e t L 1e"' bef'L e f i nal reject ian . 

Distrib-o.ti Jn :>f co l or ::.s t ..... :cj-~ int 1 e.c count . s li:_;ht CtUtn;;en in line or 

COnt our are n:.:>t COl1S idered but every C'"'.re i c:: t a':en to Li Y~ a f a ir 

decisi 0n Oil t 1e ~s ie of su-bst itution fr o_!! th~ vi_E2_'>{2_'Ji_nt _of the ave_ra_r·e 

buyer or co .sumer. 

Al1 ow;1er may occasio:1a lly quc st i 0n t he Bureou'f lejection. In 

sueD. cases , the c:>nflicti.1;; e;n trie s are "'11':''.'!1 t') a co:rr.ittec 0f seven 

r GpresentinG ere t anc~eR 'Jf ~e ia~~st ry . Bef')re ei~· cent t o 

t11e commi t tee , eve n the .-.ynbols . ..,_ r e i:e~-:aveci frol'1 tne ~t:ie" ~'s an 

a·bsJl ute safe(}.:D..Td. . For a c~e ci i 'Jll five :nem-ber:: ::tre required to vote 

ancl the c.e cisieD i s fL:.o.l -,,he: · ive:l bji "' m..., j ority . 

(e) P r ovisiona l Rules - A ... e t oJ.· p ·rovisiJ 1el :;:'ules of t he ] tio.1al 

Counc il o:n Desi gn. Pr'J t e e ti OY! has 'te e r. dro.vrn up , :: nd t le~e rules c )TI -

sti tut e part of t:ni s :p l an • . 

Procedure f o r Other I!Y-us_t_!ieE_. 

Vfuile t he s:rstem set fortn above '·~as ·ee:: oun~~ !"U.ccesc-ful in the 

textile nci. leat"her fielG.s , t he rule" cc::1 be al tercci t ;:, ":lcct tile neecs 

9811 
-368-

of <:'-ny industry. A C•Jm..rnittee Ji1 :Uesi c_,n Protecti 'J!l co:r..sistinc of r.1embers 

::> f tl.1e inc'ustry ma~r vnrk out a s~Jccial technique sui ted to that particula 

industry. Such a corru 1ittee muld have t hree functio!ls : 

1 . Firstly, it c~ dec i d.e li ~: nc:u7 questi·::ms which lie 

entirel y withi n the scope of t"l1e ilvlu s t:cJ such e.s : 

a) T.nr.t con ti t u t es sta )le or ~t2nC.:J. rc". ci.esi :):1s . ese 

shoul cl be sepa:c::.ted lP7 u. conu:t.i t te e fr:J,:: the rec istrable desi cns . ) 

b) For hor1 l one; a ::;eriod should •; rJte ction te afforded 

by re strat on . 

c) Should such res i stratio::1 be re:n.ewab le ai"..C if so for 

hovr l one; e. peri od . 

d) Sh::>uld owners oi' c~esi r._,ns be ~· :civ il ec;ccl t o lease them 

to 1er mer1bers ::>f t l.1e h'..dustry. 

2 . Secondly , the c ::>m1nittee J:Ju c~. C:. eci de v111o.t f;rn Jf l~ecistration 

vvas best sui t ed to the in(ustry e.nc,_ v1:1e t :!J.er to set ; c:m inc.ivic.ual 

13ure e~U or to use the exist i nr__; L1.::ustrial Iie s i 12:i1 J.e c i s tr:1t i on Bureau. 

3 . I f the dec i sion is r.1acl e t J use the exist-i n ?ureau, the thi:..d 

functi 'Jn o f t he conrni ttee wou l d be to a1· cc:. ~ ,e wi t h t he staff of t he 

Lureau technical c~e il ~ of re,_;istro. ti::>n such a s fees , time e.llowed 

for searcJ.1inc; 1e fi l es , £mC. oth er mat te ::.·s ff c t inc t !1e ~Jro cess of 

rec istrati o:;1 in the i nC.us'try. 

H'Jw De si«ns are Prot e cted . 

I t wi ll be een t h:.t the system does m'Jre t han merely a ssu re e. 

p ri o rity ri.=,!l.t in case of li ti c~. ti::>n . It e.ctually ,Jrevents c opies 

fr om reachinc· the ~11ar :et . :Cach accc1""'ted ent :cy i t'- s t ru.1peo. before it 

leaves t :1e :Dureau , a nd tha.t stamp is an a~ sur ance trliJ. t subsequent 

c_~:1flictinc. e nt· ies vrill ·be rejec ted . The lJrinters, d.ye rs and enc;ravers 

l'!ill no t -- or~: 0:1 a clesig::1 u::1less it bears tl:le stam J a,f the :Sureau. 

Tl i e. rrcmc; lent y:as in f u ll :·Jrce trn y ears bef·Jre C::>des c ame 

i n tJ eff eci . I t sh ul C certainly b e p::>ssible ~ ev'Jlve ~ similar 

c-oystem ia • t ]1er ~C:.ustr es ~1eedin :-.; prJtecti::m :) r t'J a rrance t ::> have 

t hem u s e t he r> reEe::t system , es:lecially l1'JV! that ~des 'Jf :?o..ir Conpe ti ti'J n Jffer t J i:1 c: U: t::y t :1e ~J" rt-w. i t:,- it }l"'.S l::>nc; o.::tai ted t o 

establish firmly t:1e b~ s ic pr J ced..ure Jf fair ~-""lr< .c t ice . 

Si tua tiJi. Cl1.".n:::;ed. O'i Cxles 

All 'ltterrr:c ts t J :)u t a in FederP.l leci~l ti'Jn :p r ::>hi b itinr; d.esi c:1 

~1 ir y !:ave s 'J f D.r beei1 ·unsu ccessful , aild exist'inr; l a,;;s d::> not ap·,;ear 

t ::> :Jr ::> vic: e q_t:ecl_"UD. te p :. ::> tecti ::m f ::> r Ccesigns. 

C::>C:e s .) f 

1) Jd. e~ r: a~:e 

p r Jtecti :1 :.:1 c 1. 

Fa ir C::>mpeti ti .:1 C;Jmp l ete l y c:12.i1Ge tl1e s i tuatio:1 . 

the •"Jrotect i on selective ; l-hat i s , i:1 us tries r~ i h in[, 

Jbt 1..in it; and inC.,..l.s tries ,:rhich c1 ::> ;.D t nant it a re ·D t 

9811 
ce>mpelled t o acce:Y'c it . 2) Any i :'"lci_u..stry L1c:::>rpor::ttinc, ;:;_ de ir;n piracy 

}.lrJvisiJ!1 i:1 a Code secures le[;el e:1.:.·"rccmc:"'.t Jnce t?le Code ic::. a~'pr:::> ved . 

3) The in6.ustr;;· i s free t:J set Ul) in its :rvm rrtnlcs or c::>operatively the 

rec;i strati on machinery aecessary t :::> ::>btain c.c tU? 1 ancl complete protection. 4) Arbitra tiJn can be used to insure just and speedy settlement of any controversies i nv olvil1g yro tect ed designs . 

Fur t he r Inf orma.t i on 

The Natione.l CJuncil :m Desit;n Pr otecti::>n of the Ame rican 

Ar-bitrati on .Ass::;ciatio~1, 521 Fifth Avenue, l'!ew Y::> rk City, will be 

rlad t o furnish furt her inf:::> r mat i :::>n or to novide an escort for ~ ~ 

t'hose desiri ng t o see the Ind.ustrial De si gn :ctegis trat~on Bureau 

in operatio!l . 

'jo memoer of the I ncl.ustry shP.ll i mita te , s i mulate or ap;)ropriate 

within six m:-mths fr x: t l1e rlate :::>:'its ree;istrati:::>n 0!~ any exte:1~i ::m 

t:1ereof , any ori:-5 ina.l ::>r u.niqt;O des c.~n or s tyle or any trade- mark or 

!lame or brand re c;istered 1:vith the L1dustry or its desir:;nated n.gency , 

anC. any such imitation , si nul a ti::>n or ap~: r.::priat on shall constitute 

an unfair trade ;:-J:rc.ctice ancl. s. vi ') l a ti:-m of t h i s Code . 

Style Piracy or Piracy ,of Design 

The Code Aut ~:o ri ty ma;y establish ar d.esiQ1ate a Bureau of Design 

!{ec;ist ratian a ;.:d ,:;rr;anize a C::mur.i ttee for the interpretati on of de"'ign 

in the current acceptation in t he trad.e /industry , anCt. no member of the 

trade / i:i.1dustry shal l usurp or make use of any desi g.!l , drg.wing , ~')at tern , 

plan , styl e f eat-trre, ::> r C:. tL1~1J sh nc, cha.rCJ.cteri tic which has been 

re.::.; istered wi t~1 such :Sureau; or any such desi gn Vifhic- has been subm:btted to a p r ospec t ive custc:ner by a compe titrJr and. i s datecl and. 

rightfull y a nd pla inly r;1arl::ed as havi nc; been .created Jr devised by and 

beinG the ~1 roperty of sl::.ch c ar••ret i t or and which has nJt been purchased 

by such prJspecti ve C\.i.stome r; or re:0r:::>duce ~ffer f :::>r s2.le or sell any 

article of Ruch desi c n wi thi n a five year Deriod e fter its o~ie in l 

p~·J uction . 

9811 

I 

HJward Hayden 
c 

p 

\7 

,, 

hlr . Max Be rkowitz 

303 :2 ifth Av enue 

lie'.: Y.;rk City 

Dear ilir . Le r~:Jvr i t z: 

·-370-

iviuy ,'3 2 , 1 9 34 • 

I nJte h: e. pu-iJlic Rel eas e , \'1 l1ich i s enc l Js ed , that 

tlle ~d es :-:a ~C'.baL, L1e.u.~ ry i s cles ir ')u~ 'Jf r e'Jrc:a:,lizinc; its Cod.e 

Aut h') l'i ty . 

As I -l r omi sert ;::rru. ,,-,~- e:l yJu 'He r e ~1er:e , I n.r:1 TI 'J Vl JutlinL1{' ...1 :""~:. ec .ure f :n l.lr.;.n -lL1c_~ ~1e :r·e.:;istrati o:1 'J f r.esig:n and t l1e 

steps t J ·oe a~ .e11 i n p r r v e::.1tL1c ·1;.1y r:1e::1ber af t 1:.P i nc:ustry fr :nn 

usul'·1 '~ ,1~ d. ,si[)1 that ~J.D.s -:Jee:;.1 re -ul P.rly re :: tered. . Of c ourse 

t .li s :•1 rJCeC.i..ITe i s suujec t t o SlJ.Cfl m'JC i f icati 'J!1S 'vS ma.y be l1.0£~Ssl'.ry 

or desirable i n yJur p~r tic ~lar i nCu : try . ConC i t i ons u re' d i ss i milar L1 <~.-r-..y t vn I n(us trie s a ncl v1ha t ma.y v1orl: well i n one mn.y 

nJt be o successfu l in t .l1c Jthe-,. . Ti.1is ·nr·J cedure, h:mever, has 

me t vii t~1 ? ::. eJ.1e r a l a:·"l~~r -:: l 'J: t :1e ~c i: i str a. ti on and. it i s suscestive , a t l e2.st , L.' ·1.::- t e11ti rel;'o/ a:·-·-·1licab l e t J be 1..1.serl exac tly 

as it has bee~1 C: r <:.ftec1 , 

\T1en y'Ju v;a-·'C l leY·: , I 2:-'"'.v e :/:JU 2. s1::.::;:_;ested C'Jde 

prJvisi on tJ c:msi cler . Of c.;-y.-_r sc , L i.i s :."roced1..:.re i s ~Jl.:t:ce y t he 

b;y- l a ·rs or :.:ules t ~) CO..Ti.''' )Ut tue C')C:e ·~ -c vi si-:) . Th i s ·;) r oc edure ' . -

shJul c;_ not be n.·ittei: i:·.t1 E:.'-. CJc' e , but cJ.c'lo-:)te( :--s ::1 resolutio:.1 

by t.re C'x .. e Au t!nri ty a 1~ --, rese ~tec~ t ~ t :'e k ·.mi 11istr.::. t or f'J r <-l~"/C ova l. 

L~ nJ t ~1es it te t~ J~t:s ult ViJ itl ·le Jl1 11 ~i matter 

Lw.t y"Ju '1 .,' feel I !'l~l ·ce of ~e . 

=::.cl::,. ure . 

9811 

Si··1cerel y ~rours , 

~ 7B.A :::r~f e Pr:J.c t ice Consultant , 

Co·:.J • 1 J"- l~ I'i v i s i on 
ARTICLE IX 

RESISTJ.::ATI Ol! OF :-cJESIGl S 

ec ti o~1 1. Desi c n p ira cy is l e:rc·i)y c'.ecla i: ed t :1 ·t)e Em u: f e.ir 

net:wd of c :x.1pe tition. The term e~ c;:t ' as u sed ~1er , sic,nifies 

designs arti ~tic or ornrunenta l a~~ t _cti na l or ecl~n ic . ~o 

member of the ustr y she 11 imitate or c op y , ')r caus e t J be imit a ted 

or CO)iecl , an;y c. es t;n ' oric,i::.1CL1 L1 its a}'l:"> lica ti:1 i1 t _, cmy P- oduct of 

the in0.us t_ry , wit hout the c Jnse:nt Jf t he Jw11e r t ' _ere of, if: 

. (a ) A d.r a wing , pho t Jc,raph or r:u cle l of ,aic'. de sign 

D.as ·been reg istered. vith a CisL1ter est ed a:1( impa rtia l 

c.c:ency t o ·be '. esi ::_~ 3. cl ·by the Code Authority VIi t h t he 

ap·,,rov a l _of the c~:· 1i ni s tra t or. I ::.1 ree;i s teri nc; such 

~es gn , t : e Te c istrant slmll indicate clearly the par -

t.icul o.. l~ or parti cul a rs i n '~1fc h suc_1 c~ es n is ori:._ ,ina l 

i n its a }:Jl)lica ti o::J. to a ;.1y :;Jr oduct of ~1e i nc: u s try , s 11all , 

in acicli ti0n , submit a s ·ror 11 s ta:temen t in v1hic n he certifies 

t hat t o t :1e ·best of his b 1owl eclce ancl.. b8 lief, such C .. e sign 

is in fact ori c i na l as af:;resaid , a;.1d s hall )e cify t ho 

date of CJ!1c ep ti on of suc11 c1e si c n . Such G..isL1t e rested and 

im:_Jart i a l ~, e;.1c y sha ll a.ccep t any :.esiGn s ubmitted f or 

re :;; istrat o~'l a s n f .Jr c s a icl, a nd sha ll issue 2 c r.- rtifica te 

of registra.t i on t o the r e[ istrarrt. 

(b) Sa i C. o.esi c;n has b e c:.·1 Jff:;r ec. f ·) r s a l e , or said 

c.esi() .1 ha s bee:1 q>~1 li cd t J "Jr C'l'"!b ,.,di ed i :'l ·.1 rticle s p r oCl'l'-Ced w -: .. er this CJ0.e or any Jt'D.er c ode a f fc ctint; similar 

-·Jr :; cl.u c tc· for s a le :> r -~. ublic c~ s trib uti10 n • . I. 

( c) Sa i d desi ~ or sai [ ~ticl e t J whic h sa ~ desi gn 

i s a~-· ·:J li d oT' L1 "-d .eh s :·.i d c e si g-:1 i s c .. boclied b ear s t he 

mark " l-te c_; i stcred ~RA clesi r;n " or 11 7" ec; . ·iRA Code Humber 11 , 

a n c' t~1e ,.~ e Jf re istr ti 11 . 

Pr ovi decl , t ha t t he p:r oni bit i J:· i1e 1·e i n .'1-l_ .a.L >s t il'ac Jf a·w 

G..es i c,n ~ha ll exp ire s i ::: mJn t h s fr :1 ~1e cl.a te of re )str ti "J: t~1e eo . 

Secti on 2 . Art Ar.oitra ti 0n :Ooard r, lmll ·be . e t '~ t o se ttle 

clifferei.1Ces Jccasioi.led ·by c J:t1flic t s i n clesi g::1 or })- i orit·; of rit;'hts 

unc:er l~e .::__ ist erecl c:.e s i o 1s . After a ll ·-,o s sibl c e ff o1·t has b e e J'l e xerted 

t o amicab l y settle . uch diff r ences , the Arb i tra ti ;11 ::.)"Ja rd shall submit t:) ~1e Ac~ l. nis t::.- "Jr L1 nr:iitinG,; c:. st :tt ement se ttL1'· :io rth t ne facts 

j,)er cd ;~ t ·1ereto , wi th l' c c smne nda t i on s ·:ts t o t :1e ci esired a cti 0n t o 

settle such d i fferences . 

Se cti'Jl1 3 . lTothi nc; c J11t:'d:1e d. i n t h i" Article IX sh..'l.ll be co.1-

s trued t :> limit t he p r ; t eet i J l a ff or cl od to cl_esi [11P .,s Jl' uc:mufac t ure rs 

in respe ct t o desi gns under existi··v lav1 . 

9811 
- 372-

PROCEDTJ:ttE E- :-:r~~i:U LEiG C1-'c.SES 0:' USUHPA':i: ION 

OF ::JESIGH 

II Desi.c'!1 Piracv - .A:.1v mNnbe:i.' :::>f t :w :>.l ry ~·ihJ c reates :::>r (evises w ' tl v 

a style -)0,tter11 :>r fl f.esil)l ~)<'", tte:-~1 mn~T fi l e f:::>r a fficial r'E? ~s tra.t ion 

vri tl1 t l1o Pat tern J.ec;i s t ra ti::n~ :Jul~eau ;- y~lr:::> ed by the C.Jtie ~ut'h ri ty of 

t l1e I:1C.ustry, a samp l e :::> f t he e )c: ttern or c"'..es c;~1 vat tern b~' a ttac! L 1c t .:1eret:l a rec;istr8.ti oi.1 carcJ. , 'J.1 ic , Ul)~l1 ]1~J lic ti :m , sball be 

fu1"1i sl1ec. -o · 1e :) ~e Aut JritJ. Aftei~ such ret;is ti ::m , ami f or a 

pe r·iJG. :::>fat leo.st siz (6 ) m:::>i.1ths, n:::> member :d t n e L1dustry shall in 

anJ in '.l"-i.ler Jr form , L1 t-1e curren t i ·.1terpreta tio11 of t l1e I :1e.ustry , copy, 

i wi tate , use or de.:-.1 i:• s2.i ci styl e pi.ttter:1 Jr cle sign pat tern vri t l1out 

1e l icense or CY1se:1t :::> f ~1e re:::;istrant, excepting it ~ t h e ap::'lroval 

of the Arbitration BJar d as here i iafter se t f :::> rth. Sa i d r egistra tion 

c a rd shall include ~1e fol l :::>vri n[; : t he name a ncl addr e ss of t he rec;istran t; t l1e elat e of fili:ll:; of styl e p n ttern or clesi en pattern; a. brief 

descri p ti on of tl1e me r e<: ndise , i :>lcluclinc e sp ecia l reference t o its 

d istL1C:,"Uishi nt; cl1:1.ract1 .istics, and E!. descriptiJa of t l1e machine _or 

machi nes upon whi ch t he ne rcmnd i se i s :1Rnufa ctured . 

L11 .tely upo:1 such re~ stratio~1 of t l1e s t y le pat tern or (e~i t;n 

pc.tten-: , s cdc ~ureau shn.ll rr.al::e Jl' <~:t_,_se t J be ma0.e a full c:tilcL c omplete 

se u~c . I f a ft er such search, S<-\ i-d ::.:'ureau fi:1ds t hat t l1e styl e 11attern 

:::>r r' c ri c;:1 ::1~ ttern is cntitlec\. · to -be ret;ist e r ed , it shall r:1ake CllJ~! r:::>

pTiate e::::. tries of re::is trat i on , it si1all i nmedia t e l y no tify said rec i st rant t L1r t c.1.ue re c; st ntio 1 h.1.s 'uee:n [.ranted. I f aft e r such search, 

sai d -ureau fi: ds t hD.t the s t yl e po.t t ern or c.'.e si[?.1 ~Jatte rn i s not entitlec"'.. t J be r o: i s t eroc1 , i t sha ll c. c<Jrc~ L1c; ly not if~r ~1e Code Aut hority 

and the l~o c; i s t ra_1 t . · 

I f the rec i s t ra!lt i s ;1ot ~'1 isfi ed 1 t l'le fL1rcL1c of said :Bureau, 

tJ.1e C'J de AuthJri ~r , 0:1 ques t b;y;. t he re{;i s trant, shall refer t he 

matte 1· t J C'I.I Arbitrati c:u B8a r 0. :n~ fLi.,;,l de t ermL1at i on. This ::a·:>ard 

sha l l c 'Jnsist of -chree 1:1embers ; o::e t D be cl.esi c;;1n.tecl ~. r t he C:::>de AuthJrity; Jne t J ·oe desi :_;-112-ted b;y the ro ist ::..~ .: ; a nd. the ~1 ird. sJ.1.:"1.ll be L1e 

Ac .mi 1istra~ :1 r.c.m-be r 'Jf t he C.Jde AuthJritJ<- t J serv e as Ump ire . If 

t11e Ar-bi trc.1t i o11 lbard determi nes ~1 ·.:.t the s t y le ~~2. ttern Jr- d esi c-;1 -,c. ttern 

is 0>1ti tled t J be :cec.,i ster ed , said :Bureau. sro.ll iPU.13dia.tely c ::mr:J lete 

r e.,i ~ t r"' ti J:: . II 

:~ :'· •': ·:: :;: * :~ :~ * * * * * 

98 ~l 
.~P 1. 1934 

S T A ~~ B A ~ :: S 

Jl 

Ti-:E _TAT IOj" ... L COT;-_-C IL ] -~ -=.src;~ ~1 ·_::-: C~IOi 

For :Jesic.:n : eGistl·:'.. .... i J:. ~e:.: vice 

.A. ::rr.~-Titte -J f t~lree ) Y' ~· ive --e::.~sJ::.s s·J:.ll Je elected bv c;.cl 

LlC~ u~ try . ·. ~:te c.uties Jf t '.:liS CJJ:lnittee s'u.:.ll e 

a . Pres.cri-bL::.:_ J~· :.:ules 1.:1c' l'e, 1.1 ti J: s fJr the 

C=':l:.uct ::>~ ~1e se1·-rice u .. de- t.1e t:,llicl.a:.lce -::nd 

vii L1 ~e ,l-' vice ;f t ile st-:.ff Jf t :1e ~Jes i;:;n 

J.ec_ is t rc;.t i::·:.1 : u reau. 

·u. ActiT1C as r--._;. _ "··P eal C::>. u·.:i t t ee L1 c.''."e Jf C' is:"~ute 

rec::.rc" .. L 1&., <i ur'. [_me~l~ of t: e ]U!'e'lu '"'~S t ..) c Jnflict 

·oe t ue e:1 c:<.:! s ic;:1s . 

' 2 . ?.:ules C:l.:.lC1 ?e{;ulati Jns : T~1C c ')!'1JI1i ttcc si.1:'1.11 ' )!'1 t~e 

'oa~is Jf t .le ~lee cls :)::[ eac:l i;-,_c'_-L...stry, 0eten.1i ne f)_' tl'le ruidance 

of L 1e :::;v.rer-u, t ... 1c f() ll ~w ~1C · :, l:i. cies : 

3 . 

1811 

a . 'J:hu lenc;th Jf til"1e ~ j -~)G i ve-.1 t:1e buren.u for 

pr~ss iF.f1 up".:i. the ·~es ic 1 . 

b . T:1e -,)e ri od )i - ::.·J tec :y~:. (i. e ., ;:..e :.:-ear ; 

five ··ears , etc . ) 

c . <w .. t shall ·be c :1siclere·' t:.ple Jr sta:1clard 

G.esi :·"13 - ~-u:Lt i s , t:nse n::>t ri~-:1tful y m.J:D·p 1-

ized ~y one firm. 

d . DeternL1r.ti -_1 •± tne :.. ;rr,1 i·~ -·:1ic!. cletibns 

'7ill be clibEli ttecl t) t ile ?·urer'.u. 

-, t bl' , t f - . .,. 1 .us a l S.!1.J"r1e.1 J _ a .Jes~ .. n __ ~ T'J i:1c..u u· a te cesi[,n 

r.:. . A Teq_uest s'h2.1J. oo i~£ued by the uuLl"~l' izcd c P1-

mittee t o eve ry;:1e L1 tl.1e L1•:1£try , req_ue ti:i1."'' 

t he :filinc ni t:1 t}le :Dure.au b_r a certain d.ate , 

'Jf a J.l r'.e~ [)-15 ·ue i nc; 1.S8C~ .1),,- c·,.ch i i•QiViUUC.l I '!1Cr . 

b . A cl· .. '.ss ic r'.t ·~;, s~-sten f)r -r~J unL .. t1e (eril>ns 

:.cc -· r0.L1C t -:. ::1c. jJ1~ t;,_Jes sh,_ll · c "~re:;_:n.recl v•ith 

t l1c mutwl ')rJ~"lGl"'t J~: )f t11 C'J;'U",tittee .": c~. the 

:2urem.1 ' s staff. 

c . The C'Jf.'li11ittee ':rill Ce tcrr.ti :c td) ..,~r is un :: w:1ich 

~1e :auren.u nill '"' Cc e·~t '"'~.s rc. is tcrr-.blc , desi,:)lt::. 

received i ·n the i:1itirl J~ , t:·.-·t is, .,. ctj er ~11 

but t hJsc ')revi Tu.sl y cl<!.ssifi ad ~ st-·.pl e 1r sta:1.c'.-

arC:.s s h£.11. ·oe rc ::.,i £tcrecl , i:1 n:1ic:,_ event , duplic"'.tes 
- 374-

of r rgist r r:>.blr c]_ ,.. sit::': .s s!l"' l l b - cid d o:·. 

thr b~.si s of ]Jriori ty of r c . i p t or such 0 tb r r 

b~ sis '', S th- Committ,.. ,.. rn:',y J. · cid- to b · f .:1ir 

':l,_ d - q_uitabl·- , or, to ".cc rpt for r g istrat :io :: 

o. ly thos~ 6..-sie;· s -.ot cl1J;!f lic:•.t- c!. L _ th,.. i: .iti:.1l 

collr ctio:·. . All ot~1rrs to b ,.. co: sicl~r~d a s 

st.:1plr or st ~1: .cl"'.rcl . ..,_ t th tim· of -st .:>.blishi:·.g 

t1:Y Bur,...::J.u . (It rn:J,y -b - t :1- t i. . this coll·- ctio:·_ , 

th ~ wi ll b - p~ tt s ss ifi ~a ~s st~p r or 

sto.. .. dar d , which a. r woul d b r r: titl,.,d to r "'gistr:J.tio:·. if s ubmi tt - d Yvi thout duplico.tio:· .• ) 

4 . S· t tl -m- : _ tof :Ji s·.Jutr s .::l • r 'J.rcU ·:.g Rr g ist ratio: . or Us "' 

of Dr sig: .s : isput s r ·tT"l.r cli: .c r - ,j - ctio: .s mo.dr by th- Bu:ccuu s:':":.:tll 

b r r - f - rr-cl to t~Y c ov- r .. i..g corur.ittr"' fort:- i .dustry Upo: . t :l"' 

r qur st of t :y O'.'T. .- r of t~l c:r s i r.,: • A f r ,.. s h.,_ll ~ fix--d py t hr 

Commit t · · for t ~1 -- ~Y ari .g of such D-F·,- a ls, i :. ordr r to cov - r t :Y 

[l,dd itio: . .. l cost of h."l. .. d li·.c; 'cl1 d·· t ·;.ils, c-.. :. d also to r- limi'. e..t 

obj ,.. ctio. s th:-tt - r r .. ot mad- i ·. c-ooC io,i th. 

I. . t :Y r v - . . t of th- 0\'1. -- rsllip of .:1 c.L· s i c,:·. ·b· i : .o· c1isput: d , or 

wh~ r r · .. rro. g-r.lr .ts .:'.r -- to b - ma cl.r for cross-lie-: si· .g of fl, C ' rtai . 

(-si t;:. br"·-· o:.- or mor'" p:1rti r· s , ~l-- ma tt'" r sh'l,ll br a djust "'d 

b,/ t.rbitr1.ti o· ., i :. r:.cco rd_r-1,:-.c - wi th th- rul "s of t lr Am"' ricrc: 

Arbi tratio:. Associ 1. t io: .• 

961 1 
.. 

. , ·. 

- 375....; 

. PR YfSI ~~-~.u JULES · 

· -:hl ·the 

HArniO AL COD~ GIL 0~: :JE SIG~: P'.::OTEC.l. IO J 

· f ;H' tl e 

· . . DESIGrT ltEG IS ~RA -;1 I Ol. 3 I.REAU 

The, ~~ati ::J~;.al 0'\.l:.:cil :)~i. csi01 PrJtectio~1 c>.do:p t s 

tne f :) ll:)wih:.., ·P.ules Jf' Pr Jced J.re fJr t 1e recistrat i'i::. of :o r'ic i };.[).l desit;:ls ' trade j'l[).Jnes C': d tr'l.de -

i·.1 r~.: ' iri tne Desi t"n R~.;:cistrati:m :Surea-1.1 • 

I 

l . .iksPo:lt ~tion f e r Se tvice : cAnJ' trn.de assJciat i Jn .:)r i::c1 ustrial 

.:;r oup opera ti:t?-::; under a Code of F·.ir Comne ti tic:: ,-,;;,ich co_ tains a 

provisio:~ c or..sti .. tuti:15 t he imi tati or.. or nUl.n..tibn. ·Jf j ric;i!1al desiE,"!'!.s , 

trade _1ames or ·trad.er.1arks al'l u.:1fair trade p r -·.i.;ti:Cc , or cny such a s::>cia.tion ::>r c_ .:nr~ · establis~1ii.1[; such sta: C:.arC.s rJaJ a~ p ly to t l e Co~1Cil or 

t e> t11e Bure uu f o r the· use of its f a cilities· f o r its membe rs. Exte:1" i :n 

of the use of f a cilities t J such r.1eml ers shct.ll oe thr ol.l.{;h tne redi um of 

such <:l-Ss0 c iat 'i on ):,.· c;1·oup , The CJu.ncil s .... 'tll a:ol rove ·oi' such a~Jpl icatio!l 

bef e> re the servi~ e e> f the Burea u i s made e.vc.iL.,.b l e ; .:->.::d. such trade 

association or e;r'Jup subscribes t :) t l ese .Rules for its r.embe r s . . . . 

I I. I ns ti tuti•Jr. of se'rvi c e : E:tch trad'e aSS')Ciati :>_:· ;r i!lc:us tria l 

group 2-pplyinc; f or service sh:ll obtn i:1 f r Jr.l its r:1er:1bC:rs n: c:mrplete 

recorc~ :)f e.ll d. esi.cns , tr9-de :. _runes ol' r.1a r:;:s J•:mecl by such mcm ers , 

·oefore a specifi-ed qat'e , C'.~-i.C. sl-{a,l l s :nt t ":'1ese •2 CC ! rd.i:1.[; tJ. t:ype D.i d 

date and shall file them with t he D sic;n ~ec;istrn.ti:)n ;B~ea~!.. 

Iii. .De f il1itions : Each ass'Jcin.ti ">!1 Jr [,roup- , •:tithi~ the terms -Jf its 

i:'dustry ~ shall define L 1c n e a:1L-[ ')f Jrit:;i al d.es.ic;n , or ~Jatter:1 , 

wilat sha ll cc;.:.sti tute c-. st~p , and shall f ix t h( :peri Jcl of t i me f o r 

v1hich re:::; istratio:1 sha ll ru:. f J T t ile lJr Jtecti o.• of a desibJ1 and t he 

terms :::> f its rene·wal . 

IV . uequiremen t s f or -.Ret;i s tra t i on : .Any member of :-1:1 i ::1dus trial group 

entitled t:> apply f J r re[;istrati 'Jn of a desi g:1. , trademark or trade :1ame , 

shall aCC:)ffilJany such ·ar':?lic:J.ti Jr.. ·fi th a sar1rp le, Jric;i n:JJ ketch , copy · 

or model f or pu..rp Jses Jf i der-.t ifi cc..t i :u ancl such npplicr ti r:· shal-l co:ltain t he -~~ne a~d a~dre ss of t he ~o ~on ~~d if a firm i~ addi tion therct 'J , t 'i1e si::_,;.1n.ture ··:d the' firm' s Jfficer J·r author ized er:-q:)l J yec a::d t. e · 

legal se·ai if t 11e .:.:•Jp lic£1.!lt •is a c orp Jr ati 'Jn , to:·et' s r :Ji t1 such Jther 

L:fJrrnati ol1 a s t he Bure.a u ·rnr...:,y r e quir e . Each applicat i Jj1 snall be acc:)mpa:".ied by the fee fix~d l>y •the Bureau a: d tne C'SSOCi("'ti:m Jr rroup f-;_ 

such services·. 

V •· Fees a;.- d Expe':::.se : The fe e t ~ be p;::~icl by each <:pplicc..~ t f Jr en.ch 

articl e submitted f or r ec;istrd.tio!l s.hn.ll be fixed ''.CC1rdi: u t J schedule 

by the Bureau a :1d ass Jcia ti :n 'Jr [;r oup , n.;:u r .. y be '".CtjU"' ted r it~ their 

j oint apure>va l Jr in · t he 'd. iscr ti ~m of the :Bureau. If t!1e C::.esign is · 

not rec;i ~ tered , po.rt f ·t he f ee s!kt.ll be retur:1ed , c..cc::>rdi "1G t J the 

abe>ve schedule . The · Eill-eau 2.1:.d t he a ssJCi 2.tiJ:;: :):r ~- roup m".y :.lso fix 

the initial expense f or i! st~llil1g lh."ttever nddi tiO!l<cl facilities may 

be necessary @ institute t he pr'Jpe r service f Jr t~'l.t iJdustry. 

9811 
-376-

VI. Proceedings: .A.ll designs, tradesmarl{s and names submitted for regis1ration are held in absolute confidence, and no one but authorized 

memaers of the Bureau staff shall: be permitted to examine the files or 

have access to the filing rooms. Irrr lediat P.ly unon receipt of the anplication, together with the date requir ed 0 it is examined by esnerts, 

checked with the files and a thorough search made to deit:.ermine whet~er it i 

duplicate or similar to one already r egistered. If it is subject to 

r egistration, a photostat co~y is returned to the a-onlicant, with a 

s ertificate of registration; if it is not subject to r egistration, the 

article is returned to· the a~-olicant stating the reason therefor • 

.Appeals from the decision of the Bureau may be taken in the manner hereinafter provided for. 

VII. Design Labels ani §ta~s: Any applicant who is granted a registration 

duly certified by the Bureau is entitled to use the design label or stamp 

of the Bureau on such articles as are registered. Upon a~plication, these 

will be furnished by the Bureau at a price to be agreed u-oon. 

' .. VIII. Special Instructions: The Bureau may issue from time to time· 

special instructions of a technical nature to trade associations or 

industrial· groups deali'ng with such matters as maldng of sam-oles, drawings and sketches and models, wr p~ing and marking of the above, methods 

of notification and similar matt ers for each 'industry for distribution 

to its members. · 

IX. Appeals: Any dispute regarding r ejections by. the Bureau shall be 

referred to an Appeals Committee established by the Council for the - ' 

Bureau, upon the reauest of the ap-olicant whose design was rejected • 

.A. fee shall be fixed by the Appeals Committee for the hearings in order 

to cover the additi-onal cost of handling the · cletails and also to. eliminate objections that are not made in good faith. The memJers of this 

Committee shall serve without comp ensation. 

Whenever the .owner.shi ~ of the de sign or mark nr name is in controversy or when arrangements are to be made for the cross-licensing of a 

design between one or more -oarti es, the matter shall be submitted to arbitration in accordance wi+h the rules of the American Arbitration .Association. 

X. Complaints: .A.ny complaint regarding the imita~ion, simulation or . 

co~ying of a design, trademark or trade name, shall be filed with the 

B\rreau which will immediately institute an inquiry and endeavor to ma~e 

an adjustment in accordance with the findings. Upon the failure of such 

adjustment, the matter shall be r e-oorted to the Code Authority of the 

industry as constituting a violation of the Code, and for settlement it 

may be r eferred to arbitration under the Rules of the .Ameri·can .A.rbi tration Association upon request of both parties~ 

Xl. Committee: Each industrial group or trade association shall establish a Design ~ro ection Committee to cooperate with the Eureau in the 

administration of these Rules and to recommend alt erations therein. The 

Committee may r ecomr1end the establishment of a separate division in the 

Bureau for handling registrations referred by its members, but such divisi•n shall be under the guidance and su~ervision of the staff of the 

Bureau and subject to these Rules. 

9811 
- 377-

XII. :ct.e-. .J resentation on Council: Each t:..-ade association or industrial 

group using the facilities of the Bureau shall be entitled to one representative on the Council, such rep r esentative to be chosen by the association or group. 

XIII. Anen~Jents: These Rules may be emended by the Executive Committee 

of the Council on reque st of the association or group , and a hearing 

thereon shall be granted at its request. 

·. ... 
- 378-

TEXTI LE DESIGl~ rtEGI S'J:IRATiffii :.Bl.E.EAU. 468 F01JRTE AVENUE · ., 

NEU YORK , lJ . ~ 

Mr. A. l.i i ten t hal 

Code Admi nistrator, Handbag I ndustr.r 

303 Fifth Avenue 

N m: Yo rl;:: , 1J9. Y. 

Dea r ~ r. I.L it en thal: 

June 11, 1934 • . 

You have asked me to outline fol" you 'Jri efly our p lan for design registration as -re follou it u i th the I nci.ustri a l Design Registration :Bureau. 

First of all , I mi ght say that this p l an is essentially to revent 

ir ~r a;'.d therefore it i nvolves a ne t h od of filing photostatic cop ies 

of desi gns nhich form q: fili:: g systeL1 nhereby ne'.7 designs after they are 

receiveQ, ~r e compared :ith t hose lrea~r f iled nnd g iven or denied 

r egistration. 

As you stated t hat the Handbag I r:du stry did not nant complete protectio:1 

at this time , t hat is, compulsory submitta l of every design, t i1e service 

in this c ase noQld consist of r eceiving such design s as the industry 

desired to have registered, thus establishing a d~te of f irst use ~hich 

l o.t e r , if cte sired, could be used by your Code Authority as a means of 

enfo11ci11g ;your p iracy clause , f orbidding , I -unclerstand, the copying of 

design.s in the ind.ustry. 

The handbags are oubmitted i n nha t eve r form you 17ish, toge ther n ith infonnation a s to 11hat are considered the "re ::;isterable fe a tures;" in 

other \lO rds, uhat particular features of the bag a re considered ne-r1 

and chfferent. 

As in ev ery ot ht:H'' industr ~ P.e ssume that t he r e al~ e certain staple 

types of bags on Tihi ch no one is entitled to prot e ction. These uould 

b e classified by the :Bur eau as stal)les.. The extent of p rotection '7ould 

be t hat of substitution by t he average l ayman i n a ccordance n i th p r evious ~~ recedents l a id do1m in Patent Office c ases. 

The ch arge , subj ect to confirmation by our Comn i ttee on Design Registration , uould be p robably $5 a de sigr... ~i th a fee of $2 if the design 

is rejected. This, ue believe, Tiou.ld cove r the expense s of the :Burec.u, 

h1 t lt is our custon , '.7hen extendi ng this s e rvice , to require a guarnnty 

fron ~: e organi zation requesting it t o the effect that any deficit at 

the enci_ of a Sl)ecified perio d shall be .r:l8 t by the industry, and that 

this r;ua.l"anty shcll also preva il if, a t an~.r tine , the s e rvice is discontinued by the i ndustry. 

We do not believe , hm7ever, thctt the_~e 1.'70uld be any occasion for the 

exercise of this guara11t y if the fee is $5. I inf o:tr.11 ed you the other 

day t l e.t t h e fee ua :s ~4 , but I fi~10. no\7 tha t the ninimur;J. for ~:hich •.:e 

i7ill t <:e a neu service u ill be $5. 

9811 
- 379-

Mr. A. Mitenthal June 11 , 1934 

I should be very glad to give you additional information if desired , 

,and enclose a set of standards for design registration s ervice which 

w~s ~repared for the use of other industries desiring to avail themselves of our work. 

[f your organization is interested, I shall be glad to take the matter 

~P with our Committee on nesign Registrati on at the earliest onuortunity. 

:LB :MJ)P 

Dnclosure 

'nl 

(Signed) 

Yours ver.y truly, 

I. L. BLUNT 

'Director 
I ' 

· I 

Co~p1iance Report 

9811 
- 3ol -

EXHIBIT R. 

CO 'lPLIAl;CE ANALYSis·,. Nb 900 

EE. ORANDUM TO L. S. Bendheim. 524 Barr Blde. 

FRO : J. J. Reinstein, Acting Chief, Coordinating Branch, 

Compliance Di ision, ERA. 

October 24, 1935 

Labor Analysis of Compl;:~ints under Code Ladies Fandba Ind. 

1. Face shee t Carbons of Co "Dlaints docke ted at 1. .R.A. State Of f ices 

Dates range from July 25 , 1934 to 

Total number of face sheet carbons 

(One face sheet :rnaJ7 contain se reral violatirms) 

rvPe of Violation 

T"fage Groun 

Art. IV, Wage s belo~ mini~um 

Art. IV, Se c. 4 Pi e ce ~o k f2ils to eaual urn 

Art. IV. Seek ing back ~a e 

Art. IV, Sec. 5 - Redur.ing wages 

Art. IV, Failure to nay correct overtime 

Hour Groun 

Art. III Hours exceed maximum 

Art. III - Sec. 5. Total no. hours for 2 emu oyors 

e.xceed max. 

Other Violations 

Art. IV. Par, 1) Home \io rk 

Art. V. Sec. 5 Imnroner Class of Ernuloyees 

Art. V. Par. 1 Emuloying Hinors 

General Labor Provisions 

Total nQ~ber of comulaints filed ... 

Comnlaints file~: 

Code Authority 

DEFINITIONS: 

ay 24 . 1035 

To . of Comnlaints 

83 

71 

5 

3 

1 

3 

58 

56 

2 

19 

7 

3 

6 

3 

16C 

20 

87 

2 

l C9 

A face sheet is a summary from prepared by a State Office to be ul a ced on to 

of the case file mhen a comulaint is accepted for investie:ation. I sho s t he 

state office receiving the ~omulaint , the- doc- et nuMbe r, naMe of r esnonden 

and complainant, the code violated, and gi es a sUJTJ a ry of t he t yne nf al e d 

violation, specifying the article and parag r anh of t he code nrovisi on. Co~uiled by ____________________ _ Date __________________________ __ 

9811 
Memorandum To Mr. L. S. Bendheim, 524 Barr Bld-g.

From: J. J. Reinstein, Ac- J, iif C-orJ-inating.Branch,

Fie-.d Di,. i* LLon, b-, R. A.

Subject: Summary 6f Y.R.A. State C '-ice complaints

LdO-ies endbc- .. CODE

Cumulative total chrougi 1ay 27, 1235

LABOR TRADE PRACTICE

Date of earliest complaint 3/21/34 5/26/34

Total docketed 207 28

Investigated complaints Adjusted 82 16

No violation found 61 5

Bookkeeping rejections 17 2

Referred to District Attorney

Federal

State

Compliance Division, or

Regional Of rice 13

Code Authority, in first

instance, orior to June 15, 1935 

N.R.A. insignia removco by State

Directors in service trades

On hand, May 27, 1935 34 4

DEFINITIONS:

These are cumulative totals of code complaints handled by N.R.A. State

Offices from the .ate of the earliest complaint through Nay 27, 1935.

Series as a role begins November 11, 1933. Complaints handled by code

authorities are not included in this summary.

Complaints @ock?"d include complaints received and accepted for investing

tion. Prior to Jane 16, 1934 all receipts including complaints immediate1 :

rejected rere reported in the intake figures.

9811
rnvesti ~ate d complaints, are r eported adjusted ~hen a certificate of com-

:>liance is s ecured. Investi aged cases in T''hich no violation is found have 

Jeen reported separately since Juna 16 , 1934. Formerly they ~e e included 

· n "adjusted!' figur e s. 

3ookkeeping r e j ecti ons: Complaints cleared from the docket for this code, 

Jecause of r eferral to Code authorities or other special adjustment agencies 

tfter docketing. Complaints dropped from the special su§petse :file with 

;he permission of t he Field Rep res entati ve are also included . 

ieferred to Code Authority in first instance . Prior to June 16, 1934 

:omulaints referr-ed to code authorities in the first instance l"'ere included 

.n the intake, ancl reported as r eferred. to the code authority. Afte r tha.t 

ate complaints referr ed t o officially authorized code authorities were 

·eport ed on anothe r form, and we re not sho~ here . 

i.R.A. insignia removed by Stat e Directors, a r e r eported only fo r service 

.rad.es in Phich trade practice provisions are suspended, and in the 'R.es-

.auran t trade. 

Date 

311 

1 /24/35 

Statistics Section 

Fi eld. Di vision 
- 38 1-

. EI~I ORA mm~ TO r. 1. S. Ben:lheim _ _ . 524 Barr Bldg •. . 

FROM : J . J . Reinstein, Actir.e; C~ l~f; Coorrii.h'a.ting Branch, 

Field Di~ ~~ ~~ t . R. A. 

Subject: Summary of Co!'!lnliance Di ' ision · and Reg ional Of:t:i.ces cases (a) 

CODE 

LABOR TRADE PRACTICE LABOR .A1TD 

TRADE ~R4CTICE 

Docketed 

Closed by Administrat ive 

action (b) 

Referred to Litigati on 

Blue Eagles Bemoved 

On hand Hay 27 , 1935 

13 

6 

5 

(3) 

2 

1 

0 1 

0 0 

0 0 

0 0 

(a) Prior to 2" a:n<uy 1, 1935 , cas e s '"'e r e docketed in Compliance 

Divisi on , ,- ·ast.i :l0 , t on . 

(b) Adjusted or n~a d. 

Thi~ is a r euort of ca e s r efe rred by N. R.A. State Offices or by the 

Code Authority t o t he >: J. ic-~ e Jivis i on , or, after January 1, 1935, 

to the Reg ional of ic s fo r soec i a l admin istrative action. See also 

the rep ort s!1owine; cu.1ulative totals of conmlaints under the Code handled 

by N.R.A. St te Off ice s. 

Date 

_____ 981 1 

10-24-35 

Statistics Section, 

Field Division. 
CODE AUTHORimY 

LADIES 1 HANDBAG PJDUSTRY 

347 'Fifth Avenue 

1 ... ew Yorl-: 

STATISTICAL REPORT 

Sep tember 30 , 1934 

Numbe r of Investigation :fade 

rJon-Cor:1pl ience Cas es pending 

Non-Compliance Ca ses clos ed 

Restitution: 

Number of fi rms 

Numb er of individual employees 

Total amount naid 

Approximat e amount pending 

!-!umber of Manufacturers 

Number of contra ctors 

Apuroxima te liTwnbe r of Workers 'Sr'lployed 

in the Industry 

Number of Phone Calls Per Day 

~Ju111b r of personal int ervie,.,s :oer dny 

Octob er 31, 1934 

Number of InvestigA.t i ons ·ad.e 

Non-Corl'lpl i ance Cas es pending 

Non-Cor11pliance Ca se s clos ed 

Restitution 

Numbe r of firms 

Numbe r of individual employees 

Total amount paid 

Approxima t e amount pending 

Number of manufactur er s 

Number of Contrac to rs 

.Approximate Humber of Dorkers employed 

in the Industry 

Total Numb er of l abels distributed as of 

November 2, 1934 

Number of phone calls pe r day 

Pe rsonal intervie~s per day 

9811 

r r-; L 

567 

58 

105 

43 

814 

$11, 39;:) .53 

d; s.ooo.oo 

325 

173 

15.800 

42 

36 

807 

72 

130 

47 

901 

t l3. 024 . 22 

$10 , 20 . 00 

498 

173 

15 ,800 

15,533,800 

45 

39 
. •. 

CODE AUr HORITY 

LADIES 1 HlC~JJ3AG L'DUSTRY 

·347 :iP ift.h Avenu·" 

Ne v:r York 

STAT I Si; I CAl,. REPORT 

Novembe r 30 , 1934 

Investigations --

N1~b e1 nreviously reported 

l'Tumber made during NoveT"!be r 

Total 

807 

274 

Number Won-Compliance Cases Bending 72 

T,1..rnbe r Closed Duri ng Novembe r 90 

Restitution 

Nu.rnber 0f firms 

Number of Indivi oual "Smp loyees 

To t al .A.i1oun t Paid 

Appro :x i lJJe:t t e A.i:J.Ount Pendi ng 

Analysis of Industr y --

Numbe r of !•1 anufactur rs 

Number of Contractors 

Apuroxirnate Numbe r of 1Jor er s 'l lo ed 

To tal l:JUT!lber of Lab els :Distributed 

Office Routine 

Numb e r of Phone Calls pe r day 

Personal Inte vie~s pe r day 

1021 

53 

934 

$13 ,347.39 

ffiio ,ooo .oo 

332 

165 

15 ,800 

19,528,800 

48 

41 
Invest i gat i ons --

CODE AUTHOR ITY 

LADIES 1 HAliDBaG IlffiUSTRY 

347 Fifth Avenue 

Nerr York 

STATI STICAL REPORT 

Humber n r aviously re:oorted 

J urnber ~ade during December 

Total 

Number No n-COJT!U liance cases Pending 

NQ~ber Clos ed during December 

Restitution 

Numb8r of Firms 

}TQlJlber of Indiv idual Employees 

Total Amount Paid 

Ap roxi~ate amuunt uendi ng 

Analysis of t he Inclustry 

~~umber of Hanufacturers 

:Jumber of Contracto rs 

App roximate number of ':"o r!ce r s employed 

Total number of Labels Distirbuted 

Office Routine 

:Jumber of uhone calJ. s ue r day 

Personal intervieVI's -oe r day 

January 31, 1935 

Investigations --

Number p reviously r eport ed 

Number made during January 

Total 

1021 

326 

56 

49 

14C..7 

459 

Number of Non-Compliance Cases pending 62 

Number clos ed during January 26 

9811 

1347 

60 

1008 

¢ 13,891.14 

$ 12,640 . 11 

332 

165 

15, BOO 

21,155 , 000 

36 

41 

1866 
.. . 

. 

CODE AUTH03IT".( 

LADIES 1 Hhi'JDBAG INDUSTRY 

347 Fifth Avenue 

T-e, York 

STATISTI F~ R~PO~T 

January 31, 1935 

Restitution--

Fumber of Firms 

NUJT1be r of Individual Employe Ps 

Total Amount Paid 

Apuroximate amount pending 

Analysis of the Industry --

f'u.'Tiber of Hanufacturers 

Nu.~ber of Contrac tors 

:Approximate nUJ'Tl.b er of ,-·orl:: ers employed 

63 

1 , 031 

¢14, 625 . 84 

$13 , 480 . ('{) 

332 

165 

15,800 

Total nuTTJber of labels distribu ted a s of Januarv 28 

Office Routine --

Average numb er of phone calls uer d~y ~7 

Average number of uersonal intervie~s uer day 39 

I 

~ebruary 28, 1935 

Investigat ions - -

_, umber previously r eportec!-

Number made during February 

To tal 

r umber of Jon-Compliance Cases Pending 

Nwnbe r closed during February 

Restitution--

~~Ul"lber of Firms 

Number of Individual Employees 

Total Amount Pa id 

Apuroximate amount pending 

Anal sis of the Industry --

Jumber of I"anufacturers 

_u.mbe r of Contractors 

ApDroximEtte U.l"lber of \uorkers employed 

9811 

86~ 

554 

91 

22 

64 

1,033 

$14,668 . 30 

$16 , 000 . 0() 

337 

175 

15, 800 

24 1901,000 

2,420 
- 389-

CODE AuTHOr iTY 

LADI.SS1 HA1 BACr r:nUSTRY 

347 Fifth Avenue 

1Tew York 

STATISTICAL REPORT 

February 28, 1935 

Total 1Tumber of Lc=tbels distri.buted as of February 28 

Office Routine --

Average Jumber of phone calls n er day 36 

Av ernge ru"lb e r of uersonal interviens ·oe r day 37 

9811 

28,590 ,500 
- 390-

E X H I n I T S --- - ---

I nt erp r c t e.t ion - Order 332-10 

9811 
Name of Code : 

Facts: 

QUESTION: 

INT~rt?RETAT I ON: 

RECOMiviENDED: 

EXHIBIT 11 S11 

NATIONAL :ct.ZCOV~RY ADMil,ISTRATION 

Ii T3R?R3TATIO 

no . 332-10 

Ladi e s Hand Bag Indus try, Ap·,)roved Code No. 332 

Part : Article V, Section 10 

Co de Authority of the Ladies Hand Bag Industry, 

303 Fifth Avenue , New York, New York 

It is ?rovi ded in Articl e V, Section 10, of 

the Code of Fair Comp e tition f or the Ladi e s 

Hand :Bag I ndustry , in ')art , tl13.t 

11No member of t he Inclustry shall gi ve out 

work to be performed i n any home or dwe lling pl ace , except t hat this prohibition 

shall not apply to hand- beading, hand.-

crocheting, or hand-er.1broidery . • • " 

and it appears t:ha t certain t y-pe s of hand 

bags are rnanufacturered from numerous pi e ces 

of leather, linked togethe r, by a p rocess of 

interlocking by hand and that said process is 

sometimes lmown as 11 hand-crocheting11 • 

Is the manufacture of ladies hand bags from 

numerous pieces of leather linked together 

by a uro cess of inte r-locki ng by hand included 

under the t erm "hand-crocheting" as us ed in 

saiu Drovision of said Code ? 

It is ru.led that the manufacture of ladies 

hanr. bags from numerous :pi eces of leathe r 

lin2.;:ed together by a p rocess of inte rlocking 

by :1and shall not be included unde r t he t erm 

ll hancl-crocheting 11 , a s used i n sa i d p rovi sion 

of said Code . 

APPROV:lD: 

EARL DEAr HOWA:iiD (Signed) 

]ar1 Dean Howard 

SOL A. OS~ LATT (Signed) 

Sol A. Rosenblatt 

Division Administra t or 

Division Uo. 5. 

Deputy Administrator 

9811 
- 392-

3 X H I 3 I ~ T 

<Breakdown of Co de Authori ty 

9811 
39~5-

EXJ-iL3IT 1'T" 

Am u.A. l 

ame u 

ccrnne c t i on 

FEJ.C tory 

Loca tion 

~ of Sale s 

GooGs if bd. Volume 

S. Mut ter~Je l, Pres. New Bed- .$1. 00 

Sol , ))!ru tt e r::_Jerl, Inc . ford, I:iass. 

330 Fifth Ave ., N. Y. C. 

G. Meyers , Pres. So . f orwaL.: , 1. 00 

eye r s -~g . Co . , Inc. Co>~ . 

3~0 Fifth Ave ., J . Y. C. 

*M. ~ih te , Pres. 

Styl e c raft Leathe r 

Goods Co . 

501 Spvent h Ave ., N. Y. 

Scranton, Pa . l..OO"' 

650 , 000 

900 , 000 

750,000 

:::;nnlo e es: 

Humber cf 

330 

450 

246 

H. Schoenfel d , Pre s . 1. 00 & 3. 00 250,CDO 32 

Schoenfeld & Volf, Inc. Trenton, N. J . 14 :2ast 33 St ., l'L Y. C. 

W. Kadin, Treasur er Hud.son, H. Y.l.006 3. 00 900 , 000 100 

Kadi n Bro t hers Inc . 

132 West 36 St ., N. Y. C. 

M. H. :Bl u;r·enfe l d , ~:res . Ch icago,Ill. 1.00 fJ:. 3 . 00 200 , 000 78 

t;ii r _ o Leathe r Goods Co . 

Inc . 

402 So . !Jlarket St. Chica&o 

S. R. Go l dsmith , Pres. Allentown , 3. 00 to 5 . 00 600' 000 400 

Go l dsmith Br os. hlf g . Co . I n c . Pa . 

38 We st 32 St. N. Y. C. 

*J . Michel , ? re s. Clinton, !VIa.ss . 3.00 & 5.CU' 1,000,000 325 

1ichel , Maksi k & Fe ldman , 

I nc . 

159 Madison Ave. N. Y. C. 

I . Schoenho l z , Pres. New York G. OO & UpY1ards 75,000 5 

Scho13nholz & Weeks , Inc . 

15 East 32 St ., N. Y. C. 

R. Ko r et, P res. NeVT York 3 . 00 &. Up·:;ards 45'), 000 250 

Koret , I nc . 

33 ~ast 33 St., N. Y. C. 

... I .... ":) l"ew ·-ork - . r:me .~. raan , _r es . 5 . 00 J. rp 'I r d" 150 , 00 50 

Bag~ aft ~ ·ft;. Inc • 

. 30 East 33 ., ~, . _. C. 

M. Magid , Pr es . Hew York ea d Ba r s 

A. I . Magid Company 

14 East 33 St ., N. Y. C. 

9811 
Name & Connection 

Factory 

Location 

- 394-

Annual 

Kind of Sales 

Goods Mfgd. Volume 

:&nployecs: 

!~umber of 

*A. Greenbaum, T reas. 3ethlehem, Pa~ Fab rfc Bags 800,000 132 

Chic Bag Co., Inc. 

6 East 32 St., N. Y. C. 

*ADpo in t ed by Admin is tra tion Liember but a·in roval not Given until a few 

days before the clos e so that t hese men did not sit Ui/Oti tne noard. 

The fo llowing is a gene ral breakdovm of the industry on dollar volume 

basis: 

9811 

Bags sellinG up t o $1.00 at retail ~ 

Bags selling frcm $1. 00 to $3.00 at r etail 40~ 1 , 

Bag s sellin~ from $3.00 to $5 . 00 a t retail 2~~ 

Bags selling from $5 . 00 a nd u:p,.''~ rds a t re tml 10;; 

Beaded Bags 0; of above total· percentage 

Fabric Bags 15,J of above tote.l pe rce;,1tat., e 
~ X - I 3 I T U 

? a:ul Ab elson 1 s ~"';or t 

9811 
Dr. Paul Ab e lson 

Spe cia l Milline r y :Boa.rd 

8 We st 37th Stree t 

New York , N. Y. 

Dea r Dr. Au e lson: 

- 396-

EXP.JBIT 11 UII 

Ap ril 19 , l 934 

Your a1):s> oin t ment as Admi n istration Memb e r to t he Handba g 

Co de Authority i s now f;Oi ng thr ough . I nill wr ite Mr. iJli ttent hal to t he.t effe ct. 

I am v ery anxi ous t ha t t l'l£1.t Co c.l.e uthol~i t y s end me at 

t he earliest ·oo ssib le mo~nen t t ile defi niti on the;y ·1r ose for 

t he s emi-sk illed wo rke rs. 

I have j u st SU.£ge sted to the Di re c to r o f t he Nien ' s Ga rt e r, 

Suspender and :Bel t Cocl. u Aut hori ty that he ol'.fe l~ with you conc e r n i ng im:9endi ng l abor ch f f icu l tie s of ce r t a i n of his members. 

He came to me for advice and I ha: Y•)cned to think that here was a 

little si t u.a tion t hat mi c::;h t i ntere c- t :'J'ou. The £,entleman ' s name is 

Mr. Kendrick who is we ll knovm t o us a nd f or whom vJe have a v e ry 

h i gh r ega rd. 

,, I .n g 

9811 

You rs ve r y sincere l y 

Ea rl e Dean Ho 7ard 

Deputy AC:_lTiin i s tra tor 
NATIONAL rtECCv:;J.Y AD;,ii FIST3ATIO. 

S)e cia.l I.:illi:1er/ :Boar d 

Under Executive Ordar of Dec enb~r 1~ , l S33 

8 West 37tn Street 

Dr. Sa.rl Dean Ho,-,rar d , 

De:pu t y Ac1_;11 i n i s t ra to r 

· 3''i YORK CITT 

kJri l 18th, l S34 

Na tional Re cover:' Ac.mi nistl·a tion , 

Wa.sh n~ to , D. C. 

Dear Dr . Hov7ard:-

I rlB. ve your l e t tel"" of t he l 7th i ns t . conce rning the Hand Bag 

Co de . 

My informati on i s tna t t he meeting of tne Co de Aut,10 ri t y 

schedul ed fo r April 19t h , 1934 has been p ost oned because of t he 

absence o f t he Cha i rman of the Co cle Aut 11o1·i t~· f .:.om the City . 

I n t he mea n time , Mr. Pearson vvho had told me about the mee t -

i ng on Thursday, had a1·ra;.1g ecl for e. meeting between l1im, myself 

and a g roup of ret es ti g manufacturers, some ~ho are on the Co de 

Authority anc~ some ou t. They s:9eak fo:;.· the 1 a tiona l As so cia tion 

of Ladi e s1 Hand 3a6 Manufacturers. ·,'ie snent several hours with them. 

Asi de f rom t he ~0e tt y j ealousics an r~. desires for paying jobs 

on t he Co de Au t horitJ , I ; atl.1er t !w.t there is a basic conflict between t he s e ou t of t mm manufa c ture rs a.ncl the e York peop le . 

I have of cou1·s e ex:9ressed no o:·Ji-1i on but si ly sugge ste d 

t ha t an eff ort b e m :=tde ... to have harmony vli thin the Trade b efor e 

thes e peop l e :i."Ull t o Washi n1:_, ton a nd t :ry to bl ock the wo r k of the 

Code Au t ho rity a s i t i s at Dre s en t co11sti tuted. 

Howeve r, t his n eed f o r harmony within the Cocle AutJ. ori ty 

ught not t o interfe re with the formu a.t on of a definition of 

the t e rm 1 s emi skilled Cffil l oyee 1 • 

If you have not r.r r i tten to i'r. . i ttentha l, !Jerhe.ps it 7oul d 

be v1e ll f or you to viri te hi m e.s you d id in t he case of the I nfant s 1 

1iear s o that t hey may kno7 of the Administra tion ' s de cision to have 

me t he Admi nistra t ive memb e :c on that Code . I sh...,ll communicate 

with Mr. Mi ttent hal , neve r theless, as you sug.;est . 

May I suggest that i f writing to me or ma tte rs othe r tha n 

Spe cia l illiner~' Boar d that you addr ess let tc ·s to my office, 

f,bll We st 42nd St r e e t, New York Ci ty . I 2-'11 not ah1ay s at the Special 

Milline ry Boa rd i n t he mornin.; so tha t ~o rt£tn t corru:runicatio!l!S f rol"l 

you mig ht be de layed i f you conti nue to addr e s s t hem to me at #8 ~es t 

37th Stree t, New York Ci ty . 

PA: ge 

9811 

/ s/ 

Ver:f si ncerely yours, 

PAUL .A3ELSOi 
-398-

E X : I ~ I T' V 

Cod.e Au t l1o ri t y Report - Vi rgini c\ Art 

."i 

9811 
-399-

EXHIBIT V 

August 31 , 1934. 

Mr. Leigh N. Ore 

Assistant Deputy Administrator 

Commerce Building 

Washington, D. C. 

Dear h·r . Ore : 

The Virginia Art Goods Studios, Inc. presented a petition for an amendment to the Code of Fair Compe tition for the Ladies' Handbag Indust~J by 

adding to Article IV of the Code, the following section: 

( a ) In the States of Virginia, North Carolina , South Carolina , 

Georgia~ Florida, Mississippi, Louisi 8na, Al abama, Tennessee 

2nd Texas, the minimum wage for unskilled employees shall be 

30¢ per hour. · 

(b) The minimum wage for semi-skill ed empl oyees shall be 37t¢ per 

hour. 

(c) Learners may be employed for a period of not exceeding ten 

necks at a minimum wage of 24¢ per hour, provi ded that the 

nULber of such le rners shall not at any time exceed 15 per 

cent of the entire number of employeeso 

The petition was support ed by the following documents: 

(a) Copy of letter, dat ed March 30, 1934 , f r om Robert D. Ramsey, 

Business Manager of the Chamber of Comme rce of Lynchburg, to 

James C. Worthy, Assist ant Deputy Administrator, National 

Recovery Administration. 

(b) Affidavit of Mamie E. Rohr, President of Virginia Art Goods 

Studious, Inc. 

(c) Affidavit of Edmund Waltuck. 

(d) Affidavit of 0. H. Tufts. 

The Virginia Art Goods Studio·s, Inc. states that a copy of its petition 

was als'o sent to Col. H. s. Eerry, Deputy Administr ato r. 

After careful consideration of the statements made and the evidence 

presented in these documents, ·the Code Authority , at -:. meeting held 

August 30, 1934 at the Hotel McAlpin , voted to deny the petit~on o: 

the Virginia Art Goods Studios , ~or an amendment to the Code 1n wh1ch 

they request : 

9811 
( .:-'.) 

(b) 

(c) 

-400-

t o b e gr<:nted ~. differenti.:-.1 in WE:.ge rD.tes in 

f ew or of t he s ou tl1er:n territories. 

t 0 fix a minimurn 'ivE:.ge for semi-skilled worke r s at , 37;:.;¢ p er h our. 

t o ermit lea rners r~ veriod of t en weeks at a ~ - minimum WE'.ge of 21!--¢ Jer hour 1 not to exceed 15 percent 

of t l1e entire number of employees. 

T~le Vi rt;;inir. Art Goods Studios~ I nc . in support of tl1eir : petition 

cl cO>.im tlir.t t~1e mcnufC'.C tu.rers of L<ldi es 1 ~.? ndb gs in the northern ~tP..t es 

:1c0>.ve skilled lr.bor wl1o work wit:n ~ 11 speed whicl1 ce....'1 be .equalled only 

by e0ur.lly skilled ex Jer ie ce d l~bor 11 • 

Fift,..r ~Jerc nt of t:u:J ~lt'ndb e. g i ndustry is locc:.ted outside t.ne metro-

_Jo lit<"'.n c.recO>. of r~ ew Yo r k in wh-ich no eJ(_oeri enc ed help is C'.vn.il?.ble , 

C'.nd t h e mMUfcO>.cturers obtain t heir workers in the s.:-'me mnnner ?.s does 

tl1e Virginic. Art Goods Studio s, Inc. In tl1e met ro ~Joli t c>n areC"'. of New 

York , in v1hich experienced 1elp is .::.vr.il nbl e, the · VlcO>.ges p?.id such 

:1el}) is from two to t~1ree times more tl12Jl pi'.id the inexperienced help . 

The Virgini e. Art Goods Studio s , Inc . cl<:'.im t:1e.t they are p ioneers in 

t h eir loc e.lity. 

The record s show t~1).. s firm l.". E oeen e st c..bl i slled ov er eight years, end 

t l1a t dv.ring t:1e [~s t five ;yre ..... rs, tJ.1ey :C.<'..ve enjoyed<'. le.rge volume of 

business i n the industry, em~) lo r:; a t times as mG.ny as 168 workers. 

These workers ve r·.ll l1ad s ome training by t h i s time 1 nnd e.re av<:'..ilRble mostly at th e minimum w: ge r!".te. T'ne question whethe r t l1e labor 

in Lync 1burg 1 Virgini o. , ~ com}l?.re wi t :':l nort 1e n '''orkers in volume 

in speed of ~Jroduc tion. is n ot cleterminc.bl e 1 since the kind E'.nd quc.l i ty 

of work v'-.ria s in ·er.c:1 ·f c.ctor y , E'.nd l r.ck of p roduction fr equently the 

result of inefficiency in r. ct ~·y mE:..n<:'.gements c>.s ~12 s been disclosed 

t h rout-1 i nvestiGt'.ti cn r.lc:'..dc i n oth er. industries in which si;nilar 

cla i ms h2.ve been mP.de. 

Tl1e st<:'.temen t of t:'l e VirE; ini.'"'. Art Go ocls Studios 1 Inc. t hl'.. t u t he :pr a cticcO> . .l eni i n evi tr.bl e result i s th<:'.t t > ..e Virginia Art Go ods Studios, 

Inc. c pnno t successfully co m~') ete with other me.nufRc turers wl1o se ou t-

~~u t per CC'.:_Ji tE". of employees is so muc-::1 gree.. terll--t~ i s merely ex)resse s 

~1e ir opi n i on. 

T'1e loss sust ['.ined by 1e Vire;ini c?. Art · Goocl..s Studios, Inc. during the 

ye".r 1 933 m:--.y :: c"..ve been due to <"'. de zen o:c· .me re C['..uses, ond to hE1.Ve 

s ComlJ[ln y cl['.Ln e. t such losses resulted from incre<:'..sed l abor costs, 

is merely ex·) re ssinu :--. c onveni en t conclusi on. Any increi'.se in le.bor 

c osts mi g> t e b een inclutied in th e cost of their Jroduc t, or t hey 

mcy h ave off s et t n is increE:.se by t 2kint;; 't:1e difference out of the 

v al u e of mC'.t e rir.l s, if t :_ey f r'.il t o do so , t~. ey CC'nnot justly e. t tribute 

it to i n creo.s ed l ::.o or costs. 

9811 
- 401-

From the figu:tes furnished ~r t he Com)t'.ny of t~1eir sc.les , nd s£'..les 

costs, it would c.p~Jer.r t h r.t t~1ey C'.re ,;.Jr icinb t:1eir goods wi t!10ut <'. 

sci e ['.lld r>.clequr'.te profit. 

The test of efficiency in wo rl;:ers :n.:~de by t'1eir prJ ducti on mC'.n<:'.be r, 

is no t bc.sed on fc.cts, it is me r el:r ex-.:_J r essint; ~is individuc.l opinion . 

Tl:e statement t~12. t t~1e prod.ucts of t.1e Co 11T;_J<ny ['.re solCi. r.t ::'. :1ig:1er 

:Jrice t::..2..n t : e ~J oduc s of nort:1ern fac t ories is not sust['.ined, pt'.rticulc.l~ly since this Com)Gny Ll"'lluf l'.C tures c. uni que line of 1c.nd.be.gs , 

different fr-::..m the be.gs rnr>.nufe.c t L.red by o t_ler firms in the indus try, 

£'..nd further they £'..re pro tee t ed by )~tents vi1ic'1 t~1ey 1 C'.Ve :'.. t tested t o . 

T~1e Virgini c. Art Goods StucU'Js , Inc. de <.'. .:;oc d volu..rne of business end 

t:~ey c.re r <:'.ted fL1r>.nci r.lly i'.s one of the outst <:'.nding firms in t:1e inG.ustry . 

It is not necess.--.ry for t~-e Vi r;.:;ini:--. _rt Go .:. c" s Stucl. io s , I nc . t e obt :--.in lower we.se re.t es i n orde r to C0.1J;->e t e with f['.ct ories in the no rthern 

territory, c.nd t he f< ct t hc.t t'1ey ~1c e suff e red 2. sm['.ll loss during 

t :1e ye .... r 1 933 is d:Lle t o t:1e St'-'· e rec.son s t' :r-.t cc.used ot:i1er fr.ctori e s 

in ~1e incJ.us t r y to suffer lr.r£e r loss es , .--.11 dl.J.e t o L1e r_.,_c t thc.t 1e y 

are trjrinb to t;ive t oo gr e[l.t V['.l UeS c.t t~1e )rices. 

~1 e re~uest t o emenC.. t he Co cl.e te --.lJ.ow :->. w ..... ,;e r.:--te of 37fx~ for semiski11ecl workers CC'.rmo t be considered since t:: cre is no definition of 

<'. semi - ski1 -,_ ed v;orker in t!1e Code . 

T:1e reque 3t to emend. o_e Coc.le t o p errni t 1e--.rners is denied by t1e ode 

Au t 11o ri t y :::. t t:1e ~Jresen t time , .:-.nd until the Cede s}lr.l1 be nmcnded by 

<:'.greenent wi t:1 t :1e Administr· t 0T to 2:1rovide 1er>.rn e rs for tl e entire 

industry. 

T:1e Vi rgini c. Art Goocis Studio s , Inc. :1.-...s been O)Cr"ting under ". st:::..y 

since tl e effective dc.t e of 1e Code , Lic.rc:1 26 , 193L1. Tl1i s st£'..y ex-

) ires Se::_:)teober 1, 1934. The Code Aut~, ri ty :prote st s F'.bc.i n st t h e c ontinuance of t h is s t .::'.y beyond Se:p tem'oer 1 , 1 S34 , since tl e irGini£'.. 

Art Go ods Stud ios, I n c . h2.ll 1e en t ire · cnth of Auc, st ciu rin~ ~1 ich 

~ ey rllij.1 t :1e.ve submit ted t : .ei r Y) C tit i on . ~~ oweve r, ~1 ey f['.il ed to 

do s o until August 27' 1 934, ~d. t:1ej' .".l'e Low reClue s tinc t :;r.t ele 

exem)tLm J.:le riod s:1ou1d b e extencled. t suc~1 dt.te r.s ~!e ..,n tici9[' ted 

~1er. ri nG s~1c.ll :1:::.ve b e en l1elo., '. d L.e ) I''" _)C sec. r- endmen ts di SlJO c; ed of . 

9811 

Ve ry truly you s , 

C· ~ u·r .... RITY 

LJ..DIE.S I ::XJJB. G Il:DU .:>TBY 

A. ·,ii t t eH t :'.1 

C le :t:hr ec t .Jr 
9811 

-402-

Brief, answe r to the same; correspondence 

on the Meeke r Comoany 
- 403-

:::-x~: r sr T u 11 

.:. H~ L•l~"'KI.!:~ ,:;o,!P_ Y, LTG. 

l ine Le a tnc r Goods 

JOPLL:~, _ISSOU.:d 

Conditions a ffecting the .~:~~~R 00NIP ~Y S oper a tions under the 

L\..UIES H .\..l{DBAG DJDDST.dY GOD~ ]o . 332, adopted :/arch 14th, 1934 . 

The follo·.-;- ing are some of the h o.ndiceps under :-.hich the \1eekf'r 

Company, Jo_9 lin, i~! issouri, are operating, due to their isolated position 

1n this fi e lci of manufacturing . l'~ one of tnes e handicaps 1:•e r e g iven any 

cons16.. er at ion in tne formation of tnc Co<ie , ~.; hicn aft e r s ev E.: r a l mo11tns 

of hee rings and controversie s ~ o.s 8dopted a nd put into ef fe ct 1n .arch, 

193<± . 

=11 of thes e n 2nu1c ·p s ~e e ce l l " to the c tt e 1tion of t he eastern 

mai.lufactu.rers for.!ml at i:ir the Code D.nci t he · ,_;_ _~ c,ut nori ties in ·.as~ i 1gton , 

bllt no consio.eration ··;as :;i ve:i.1 , ·._.:1d. our su"use:1,J.e:1t Jrotests :er e L1 nec:..rl~ 

all ca.ses ::.1ot even ~·1s·1e ed . 

Joylin , dissouri, is loca t ed 1 ±00 :.1 iles fr om ::e··, ·.r or ~ ;Jit ,r . Pra cticall~r c'.ll l a ch es 1 ~1 c.• ndb ag s .. tr e m,-· nuf <:>.ct··reJ_ b:r conc·;;r .. 1s L1 ~:e•' 1or~<: City 

a.nd tllat i •Ded.iat e vicini t :r , -:her e there <n· e sever a l l1U11dred rua_j_1ufac tu.rer s, 

1 U' ge c:..:.1d S:C1G.ll. 

Y:Jearl ;y lOO_o of the !aat erial s used ia L:bricating l adies' .i<Jndot:'gs, 

co·1 s;tsti!.lg of l eGtheT , ·aet a l f r .:..,r,le s, sil;<:s, · irrors, _s:>aper, 'Tc;:.dC:. in . buttpns, ·oa cki:.1t; c l oth , c e_a,:.nt, zi?:J:;JOrs , 3.::.1- a. fe··: other ite 1 s , are _:)u.r c.ased 

in :.Te·:r -.{or'<: City ..:-..nd i:1 t he ··Ie'. • ~:1glc:nd St t es. 

The .. ,eeker COJ:rpany , in T•J.rci1c..sL.1g s cl1 mc:.:.t eri a ls, is hmdiccx9_9ed 

in CO!!lpeti tio~1 '.-r i th the ~~e" -[o t~<: 1.: iTC..I a ct-.,_rers, in th9t heav 1 L. e~ -'ht, 

ex-press and. parcel ·_Je st ch::.r &e s ae.v e to ·oe ~9a icl ; ci1a l"ges tha t t1 e ?e;-r 

Yor);: ;u_c? m:u ac turer ci a es not 11ave t o 'Je .'J." . Tl e s e c c: r ges, in ;· G.li t ion to 

travel ing e::pens es g o li1E:; to -:1ar'-:et , t e l egr :-_?h and othe. e :.:_)e 1ses , amounted 

to 2. 2.) of ou.r gross s u.l es f or t he :le:)r 1934 , a.,1d e ::9e~1sc t ne :<:--r lor1-:. 

mc:.nuf a ctur er does not have . ~e'.i Yor~: . bei:1g <... s tyl e c m1 t vr, it 1s l'lecesSclry that t he eekel· Co ~)2..il:f se11d r e}r ese!lt c:.tives to ~Te-.:· ·"or 'c J1ty •nd 

vicini r fr ey_uEn tl r <lurins t he 7ear to D-1..1,- . .1ateric l s nd con tc....\_;t fo r :"1e.1 

styles, obs-_ r ve st rle dlc• n:;es o.1G. ::ts cert ...... ln .,t-rl e tre:ads , t:1e • dbag 

u ...... siaess beine a r c_J idl7 l· .:.·Dgi: g st ~r t:J ·.)ro oositiol1 . 

The e.J.stern ;·nanuf a ct·..lrel"S locc. t E.:-1 ;:1 ~;e·- Yor~c City ::.ncL vicinit~r , 

··here ther e are ;ne.nJ f .:1ctori es , l1c::.ve an &b-cnd.c.lce o: • .'s~dlled l aver to 

dr a':: from . He r e in Jo)lL1, -. .-issmJxi, t ' ere a r e no otl er n,~1d.bc1:'~ J"D -

f c.~cturer s , mt.-:-::ing our l u.bor s~ t uat ion 7er_.- Qifficul t, . s tl.~.ere r e )Sc?k 

seasons of ,.w..1mfacturL1g at hic~1 tl in~ , in t11e a. seuce of t~c ;;.i.~. ee1 hel_) , 

':Fe are com Je ll ecJ. to e-::ll.)lo;- l ear1e:ts -.·no ··:no .o ~1 1:.:1 ; · !atevcr o.: o....r 1~'1 e 

of ·7ork c.:: ~d ··-iilO in ;..!lost cases h ·:.ve llEtci no ... c·C tor-·- e-:) riG:J.C8 of [) Y <:L1d 

,;yhr t ever. 

9811 
- 404-

·! e hav e ay:p e.J.l ed to the J.d..A _.\.dmi :li s trc:tors i n · ;c;.shing ton and 

t o the Code Aut h ority f or t hE: l adi E: s 1 h:-·. ndburs Code , located in Nei-7 York, 

f or the pr iv il ec e of employing l e:., r ne rs a t l e ss t h2·1. the 'ninimurn r:age 

tile Co d e ca r r1es , but have in eve r y e b een t u r ned. <i ou n or our p lea s 

entire l y 1gnor eC:.. , a lth ough t h e Code tha t is no'·' in ef f ect ·provides tha t 

t he Adrnin.i s tr<.. t or Jn<q , i f' he s ee s f it, 9rovide for t he em9 loy::1ent of 

l e urne rs a t l e s s than t i1e minimum Yia{;e f or c'.. sh ort u eriod. 

Th e Code Authority , be ing loca t ed. in Je'.: York ·:::i ty, composed of a 

re,-, York personn el, it i s evicient th.lt th eJ co n sider t:i1e ha ndbag manufacturlng ·busine ss fr om u T11e tro·oolit u.n, east.er ;1, or \7 York stana:point only, 

a nd ar e not incl L1ed to g ive any co 1sid tion to ou r i s ol 2.ted :9ositio:1 

in t he i ndus try ; ye t ':Ie "?[).y Co de due s regula rly and abide by it in every 

Pay , ge tting noth ing out of it exce·o t t h is c1.dci ed ex_? en s e and detrFnental 

ef fe cts. 

'7e he.v e no ":rage u.i ffe r en t 12.l to '.-hich ·:: e t h i ri!<: '7e are justly entitled , <.~. d nh ich · ·2.s prov ided f or in t h e ori _ 1na l draft of the h,··ndbag 

Code , bu t 'ih ich J.~ovi io n 72 S l eft ou t, i;e :.." ou:ad , v.rh en the h a ndbag Code 

f inP.lly .rc; s c.nnoUflced a s b eing in effe ct. -4.s mentioned, there is a learne rs p rov 1s ion in t he Jode , but t he .lillni1istra tor h c; s n ev er seen fit to 

g ive u s any r e lief u nder it. The ne t r e su lts to u s und er the Code have 

b een t hat l?e a r e compelled t o :;;; c. y t he s a.r.1e ·:n'inimwn n age for i:1e qeri nced 

h e l p , rt i t h ou t ev en a sh ort pe riod. in r:hich t o teach them to do our kind 

of rrork , that th e !·Te .,·r York rJe:JU lfact\rr e r 1s cornpelled to pay for e:-:perience 

h e l p . Tne h <' ndicap to us cr.n be ea ily seen. 

The i.1eeker Comp any: ' s f a ctor7 payroll for 19 34: · ra s Sl2.5 , 806 .00, 

which is 30.1,; of our voht;ne of sa l e s f or t h e y e ar , ' .'hich is a 19,; increa s e ove r 193'< . Our yeor' s oper a tion f or 19 4 sho, ;int:; a net loss. 

As a. re sult of thes e haild ic.:-·}JS, we ha ve ·oeen forc ed t o ciiscontinue ma'king 

c ert a in compe titive lines, line s tha t t l1e ea ste rn manufacture.f s appar ently e mru(ing su cce ssfully . Our busi ness so far this yeEr being 

33-1/3/J l e ss in volu -ne than 1934 . <;-t tur ll~r '.7e are em:9loy ing l e ss :?eople 

a t the p r e s ent t iine t han v:e 1::e r e employint:; l a st y e c..r a nd '.7 ould e1nploy 

u nder f a ir compe titive condition s. As an e:.;:amp le, l a st yeCJ.r at this time 

rr e ne r e employing 176 pe op l e , ':'hil e 13:t .;>r es ent ~:e a r e em:9loy ing <±2. 

Anoth er handi cap t o 17hich co:1 sid.er a tion· shou l G. be :? iven is on 

a ccount of our long d istance from ma t e ric.l nar!<: et ..- e are compelled to 

ca rry heavy inventori e s t hat t h e ec:st e rn mc.-::.:1ufa ctu r e rs do _not have to 

carry • 

.de l at ive t o a nat; e <i iffer o11t1a l ':rhich 'i e f eel ·7e a re justly ent itled t o unde r tho circumste nce s a.s 1~ ':\ t ed. , it <>houlci b e 'uorne in 

mind. t hat t he co st of liv i ng in Jo:.;> lin, ,~ is ur i, is much less than the 

cost of l iving i n t he east e r n and 'me tro·o oli t .:m c ente r s. If ':78 ·:..-ere conc eded the d.iff e r en ti a.l ·;h ich our h <.illrtic'.::pped. :y osi t io!1 in t h is fi eld of 

IJa nu f a c tur e :_J nl · i nd i cp t e s ~r e a.r e entitl ed to, .-.· ~ r:ould b e in 8. p osit ion t o Glilploy Jaor e l a bor tha n ·:'e pr e a'u l e t o emplof Lt p res ent, as •::e 

cou l d again resume l L1e s ne have !l ~: <i to .:-;. is continue , t l1us being ::1ore of 

a benef it t o oar c ommun i t ' 2nd b e on a be tt er oasis a s a firm. 

9811 
- 405-

The i.ieek..:r Com_panf I.lcS been ln ·uu. ine ss ·nor e t.t m t 73n t7- f i ve 

years, onci has nev er ·been l oc.:1. t ed. n ··her e e-..;: c ept here in Jo ol i. . Our 

products are sold to cie_)ert:nent stor e0 qn<i ot er r e t r il outl~ts thro ughout the entire Uniteu St , tes. 

Another h , .nJ.ica:9 or soJae im;>ort:.nce is t~1a t i s e lli!lg our ·oroduct 

in some of t he bie; s.,;.st ern cities, :_J c· rtic <~ rl;; '' '7 Yo :~J;: City, to 1nrke 

such s c l os ·. ·e c.re co:nyell ed to oJ.y tha tr c::ms_Jort.3.tion cha r ges to ti1e custome r to e q.;.al · ze the transporta tion cost ·,i th tL v. t of tne ma1 uf cturers 

in £.ie \~ Yor k close to the cust01J , :c ' .. ~1ere no tr ns 'J ort c.. t ion charges -1.:<·e involve<i. 

_\.noth er ai'J.bl e to o·u · sit·:L<.: tion is that ·:11i l c ':e a r e the onl·r h ndbag mc.nufa ctur er in ou t to··-:1, or f or thc::' t rnr tt er, in tnis en tire section, 

- in fs.ct, the l argest ~'lc> nG."bac; uLmufec tur er ·:e st of the ~ississiy_)i River, 

- there are i n our Glty , gc..U' 'nent T1ClY,J.facturerc:; c:l~ .. other m .. -nuf a ctur ers L1 

other to1ms in our i ;:-:naeciiate vicinit:" • l r; o, tn er e e r e a nuJbe:c of shoe 

manuf.:-. cturers not in our city , ou t in our vicinity , no '1e of --,horn a e compelled to p;•y the hi.-;h :i'Jiniuu·1 ~. te of 9'7 '."hich -~e have , and 811 other 

lines of such w.anufachrrer rwve {1 l a <: ·r ne r s yrovision in their Code , v:nereby 

they c2n em lo y gr ee;.1 hel ··_) :':or ,..., ce tain l en:;th of ti:ne a t 80 ~ of' t he TJ ini::mm Yie;ge U:.'1t il the;r l ec: rn, a t l E:c> st in c neasur c , ho·;r to pe L~ fo rn the ·. ork 

they are doing in c: c.. tis:f .J. cto r~· voh:Lne . Of co :-se , in these other line s 

';'ller e t here are a lo t of shoe f c" ctories in tne st tt: , a lot of gar:Jent 

manuf c ct-c..rers in the ste.te , t lle_r h aL. snff ici ant :c e_J:c e s entu tion \!hen their 

co<ies "" ere for 1tml .ted to e:::c:rt ,en i -d J.e n~,.;e so a s to enc.. bl e thel!l to ge t 

L .ir ~.;onsi<i tion . "!e hav e 12.<i no one to cooper a te \I ith ·u.s in our line 

o:f mo.nuf a ctu.r e . Tnerefore, ti.1 e Code ·.:c: s ror:1u l a t.ed and put into effec t 

and is "beinro:: o:pE-r u.. teci to<iay solel J from thr· vi e' l_)Oi:1t of the easte rn or 

Ner.: Iork m...: nllir- ctu r e rs, and no c o!ls i C.er ution c: iv •:m to ou .. co~1cern . 

·:.re cannot mE int c: in ' · r epr e s ent ti7e in '.iashin -;ton to attend a ll the 

he a riags e nci. ::n&ce ef_ort to g8 t con.u.itions or r:tliiv;s that . e are justly 

e:1titled to. Tl ere!'ore , o·ar co:1ditio r.ust b e r ·.::: lieved or else ·;;e ·-ill 

be compelled. to pr.ss ou t o:f:' t his 1 ine of ma.nuf .J et e , ._._ s :nuci.1 as ·-·e ;vou ld 

r egret to do so. Ir r;e are ... · orcecl from t h is f i e l u , of m:;.::n:. f <:...C t -...tr inc , it 

·:iould mec:.n the lo ss of _9 lo~:n.1 nt :for a. ro~10. 200 ·peopl e , l c.-ving our to··.n 

·;;ithout c.. p<-.yroll ;.ihich is JU~,.;h ne eded , &i'l d ,aan; heod.s of fa. i lics :: ithout 

e:nploymsnt .. n<i u s · ;i th a lot of eq'..li:?rrl nt f o:t · 1ll ~,; .L1 ··e ': i2.1 ~lc ve no use . 

Ou.t :_)ro,;r ess 1n this fi el ci. ill .tlc.ve beEn :a0cie i:1 v · in . 

In gener a l, the Cocle · ·e u.r e oper atL1,3 u.Tlcler no . , that is functionin€ 8.gainst the i n t e re st o::' Ol.Lr ous1ness , is f orcL1.-: us ou t of lines of 

m2..nuL. cturing ; L nd.. i~ cont inueci , ·-: ill in c 11 oro b ... ·bili t 'r :t orc e; us e tirel 

out of the h a.:.1db ar:: ·ou s i t1e s s ; and to , ·h1ch ':'e pr e co ~1_pe ll eC. to pry Cocie 

fe e s t l1at l e st yepr ,_.n ount eC.. to ;1or e tl .~ n -~" l, OOU , :. -·ear Llli'in~ · 11iC!l , 

on account of t he re..,triction unuer ·. ~nch ' e are COilpell ecl to o_Jert..te, the 

he 2vy t c'..::es of on ·· kinu or c..·.:.'1otne:r that ';e have to yr·r, c auseC: s to uo a 

yec.r' s bus il1es s not a.t ,. profit, ·out a t 2.. h ,w r net loss for tJ.le . .:e r 1 s 

Oyere.tions, a lo ss ·-- e c <-w1not cont im1e to JCtl:i:' • 

9811 
-406-

c 

0 

THE lAEErR CO ~,rp ANY , IlJC • 

J op l L1, i:lissou:i.~ i 

p 

2' 

i.'ir . Ho';iell Chel1ey 

Industri al Advisor . .r Board 

Ne.tionc:.l :rtecov ery .AC..runistra tion 

Washington , D. c. 

De ..:. r Sir: 

i iarch 8, 1935 

With reference to you r recGnt co!mJunications relative to our 

positi on in the h?J dbG.g industry c:.:..nd our contention tha.t '.7e should ha.ve 

a "!age differential , ,: ncl that 1, ;e should be permitted to employ l earners 

at l ess than the minimu:11 .-;age . 

'."!e want ~.r ou to kn01"i th2 t ··;e full:r CJ.:?precia te the interest you 

a re taking in our ca s e . It is the first ree:1.l intere st that J.l a s ever been 

shol.'n by anyone connected •:iith the .AWn.L1istration, -;7ith none shoYm by the 

Code Authority . 

":Ve particul.0 rly )pr-eciate the adv ice in y our letter of Febr-v.arJ 

19th the.t "ife endeavor to inter e st <iifferent atsenci es y ou mention in testify ing as to the conc.itions \7e are operating under in orde r to sho\V that 

lie are really ent itl ed. to '.7hat \7e a r e contending f or. 

The Cod e a s it nou sta ncis provides for lea rners if the Administratm.~ sees fit to gr a nt such. -:Te have been w.1abl e to ge t the Code Authori t~r or any of the i.Vashing ton P.uthori ti es that have heretofore been 

watching this Code t o give us such per mission; c::.ll of them probably feeling that 1f they •-:ere to gr ant us tha privilege of '70rlcing lea rners at 

l ess than. the miniJilum 'ilage , they :ould probabl y h~:. ve to do it for other 

mCJ.J.'luf .:!.cturers. Others may be entitl ed to su ch provisiOils the same a s '.7e 

are . 

'7e r eal1 ze there is c. s\..tr-olus of ex-oeri enced labor in the East, 

but there is no su ch surpL1s he r e i~ our to·.m"'; nobody enyloying l c:bor of 

ou:c kind except o· .. nselves. There a re no other concerns of our kind in 

this ·part of the entire country. 

As f or the aiffer 0ntial tha t e think ~e a re justly entitled 

to , ··;:hen the public hecring on the Cod.e r:-as held in December 1933 in 

1/a shington, ':lhich ' iCJS the only meeting 'Je have attended , no objection to 

a differ enti ?l uas v oiced by the New York ~e le. 

A l etter adci.r essed to the •:-1riter by lvir . A. lvi ittentha l, \7ho no11 

hea<is the H::>.ndbag Code , is enclosed . T:1is 1ill sho--i you the attitude 

that then preva iled as to ou r contention for a differential, a nd ap'9arently 

the reason it ':'la s not incorporateD.. in the Code ··~he n it , .. as finally adopted. 

9811 

I 
I f ~r n ·.: ill be t:;ooG. enour:-h to :- e t u r :1 t h i s l e tt vr 1 t till be au9r ec i a t ed . 

Th e <.: ana tion c: nc;_ s ent l mt?_lt of i.1 r . i!l Ct G.1tLY.l .).S o-..1t l i n e•i i n t his l e t -

t er mi gh t be de t r im.e·.1t o.l to h im ·.:e r e t i1e cont ent s or this l e ter gem.r -

v ll~r ~GlO ' m. 

If . t he iJE:"-; Yo:cl:: u:!:' ctur r s ··;er e i n c l inea · to be f ;..,. ir-minded 

ton2 r rL us as a coJo· e t 1tor , th o~.r sl1oul<i i~ lV .3 on c'i.~ tion to our p osition 

in t n is f i e l c. of 'lc.nu.fc ctu r e . -! .:; tu ll;y '-'e do not :<:no ·:; ru12 t t he ir cost 

of manufa c h .:ring is. 0:1r co st li;J S ;; littl e :nore t h <.1 l1 :3 ~ of our s a l e s I 

l ast ye::;. r . 

As -e h<:rve t i me and aga i n :1QVls ec. the Cod'3 ~thol'i ty a nd t h e 

1-J"rt.A. officL.ls 1.7he·1 t::V8 :i.' '.ie h._ .d. the O;;J)Or tuni ty, tha t pr a c tica lly ?.11 of 

our supplie s a r e b ow:;llt i n i.Je.-r York Oi ty ..: d tha t i mmediat e v icini , 

n e c e ss ito..ti:1g Leavy c...J.s or io n ch :- r ge s t hat t he i.TeYl York J:Janufactur e r 

d oe s n ot have to :) ea.~. . Al so i t t ak es time to g et our mc t er i a ls, and r equir es t h2 t rre c a r:-y· h eav i er inven to:-i e s , 8.1 1 of ':h i ch shoul d be g iven 

consideration to i f i t is 1n t e!1cied. t he t Yie snoul d b e 011 a f 2.. i r · c ompe titive 

ba sis. 

As for t he v a rio".ls f a ctors ent ering into t he l abor turnover, 

our situa tion is J. L:~ t f r om the :.,;e-.'i York ma nufac tur ers in thu t they 

h ave e:-perienc ed llt>l -? th:::·. t is idl e , ·:i l l i nc t o b e em:9l oyed , that they ca n 

s e cur e . \.'ith us on a ccou nt of tbG s ec:.sona l va ria tions , it is imp ossi ble 

for us to a t a ll t i ;n es -J<.l.into in our :...' .:.ctorJ forc 0 ,·;i th e:cpe r i enc ed he l p , 

and ou r contention i s tha t •;n e:1 •ie a.re compelled t o emp loy lea r ners we 

shoul cl not hav e to ·oa- -th e .. 1 ti1e minimu.:n ·~ag e tha t the i: ew Yor}-c me.nufa ct ur er can ga t skil l ed. h e l p f o:- , un til t hey a c quire some deg r ee of skill. 

17e h 2.ve l ittle :1o_Jes of oo t . 1int; any r e l i ef t h r u the Code 

Au thori t z' . 'En ey .'.I' t; )t::':; Yo r:".: :ae:1. t h oro·..tchl y .._' ·:-.mil i a r ,;i t h Nerv York conditions, int er e s t ed 011 r i :1 :r:::w Yor' ~ c on<ii tions c:,nd not f ami l i .:-tr n ith our 

situation. p:p c- ntl~r t h eJ e r e nfr ..::.l d i f t her mE!Ye lin~s to put u s on 

e i' c:-- ir compe titive b .:.."is i t · .. '111 6. isr1.1:9t t~1e s ituation in the East , which 

mif~ t or might no t b e tr::e . Ho·--eTe r, it i s our o~ m ou;,) in'3 ss t hat 7e a r e 

triring t o ce.rrv 0:1 . a nG. unl esG the feeli11"' th2.t r;e sboulc!. not b e ma nuf a ct uri nG ..-~db ag s h e r e in l,iisso ~r i e::ists, ti.1ey shou l C. b e ·1 illing t o be 

f e.ir ..;.nd g i ve j ust con sider e. tion to ou r .:_Josition. 

'!Je have c:...l r ead.y been f o:r c ed o•.tt of c erta i n lines f or •ahich 

t her e is a d ema nd tha t t:i:1e :=ast is SU!T9l yinQ' . Our t usiness so f a r this 

y e .•r i s <rppro:x:ima.t e ly ?.3 1/ ~5/o off from l a st yeE~ . 

i:te l at ive to e qui pment , •:;e nav e ev ,-r ;y contrivan c e t ha t 1e 

kno,·; of t o reO.uc e the co "' t of ~) <iuc tion. , e have United Sho e Mach iner y 

Comp a ny ' s ma chi nes in our ,)lo.c e \7her eve r 11e c n f ind a n e conomical p l a c e 

f or t hem. Tic f e e l thc.:..t \ie l:no' · ho·.· t o r u n ou busine s s and ..-,e ar e a s 

a l ert a s a n;,r of t hem ·,;h e n it comes to :na m -<.' c t u ring p r oc e ss es. 

9811 
- 408-

We r.J'Ou l d hav e no c ause to comp l a.in r el at ive to t he Code if Tie 

had a \' ~6 d iffer ent ic.: l t o ··rh ich -r:re 1'::no·v v;-o a r e entitled , and if \7 e 

coul d ge t e-uthor i t J t o employ l e .,;; r n ers a t l e ss t han t h e minimum l.'a,ge for 

a time until t hey ccn €'e t il r nith our u ork :md be able to ec.. rn the 

minimum or mo r e . iJe are not a sk ing that the Code be abolished unless ~1 e 

1. 0t ger r elief. ~e only ,·,ant f a ir t r ea.t ra en t under it. 

We shall endeavor to f ollo'.7 y our ic e a s to t he .::.gencies De 

may b e a.bl e to int erest in exyl a in i ng our si tua.t ion a nd confirming our 

con t ent ion s. lie '.7ou ld b e ve r y gl a d. to have a g ove rnment investigator 

come to Joplin a nd go ov er t h e \!hol e s i tuation, in f a ct, it is just wha t 

we n ou ld li~ce . T:'1e government has s een f it to e llow d i i'f e r ent ials in 

ne c.:rly ev er y oth er line of indu stry , rea lizing no doubt the necessity f or 

the s a ne . Th er e isn't c..W1other industry in our p a rt of t he country that 

has the high minimum v1ag o t hat vr e hav e , e.nd in nearby toYrns there are 

sh oe factories, shirt a nd. garment factories a nd in our own tovm ciga r f ac. 

tor i e s . 

In conne ction "'ri t h the '7h ole ma tt e r, u e fea r ·,7e a re not present ing the situat i on i n a.s orde rl:v o. m3lln er as y ou u ish, or as the 1-:RA. 

c. u thor it i e s >;Fould li1ce to have it :9r esented. Shou ld t he re be any question s of any n a tur e you ';ioulc. l ike to ask , or an;t st nts :rou would 

like to hav e us !nake , 1;1e ,;:ill •i! e l come t he i_)_9 tu it ~r of a.:1sna ring or 

maJcing t he s cme • . 

\7e don 't n a:.1 t t o ciiscontinue t h is line of ID2l1ufa cturing ; -rre 

would have little busine ss l e f t cmd would hav e to thro':.r a lot of p eopl e , 

n early a ll of t hem i t h f e.mil i e s dey ending up on t h em, out of employ:.:1ent. 

You r further co:rrmen t s or advi ce on t ne s itue.t1on n ill be aup r ec i a t ed very ::1u ch . 

9811 

Your s v ery tru l y , 

Tl-IE ·.rLEKErt COi.il? AlJY, I NC. 

gned~ C. e~ r 

Pre sident 
- 409-

i;a:rch 11, 193 5 

l·.ir. c. i, eeker, Pre s i dent 

The i;ieeker Comyc:.ny, Inc. 

Joplin, i:iiss ou:ri 

De .:ti Sir: 

I 2Jn in recei:9t of y our l e tt er of 'l ~;. rch 8th ·.rr ich must 

have cross ed mine of r ecent date . I note the lett er from the 

p r esent Code Authority to you , which I return e·.~' i th . This do e s 

g ive em illuminating vie'" both of t he vicissitudes through which 

the Code h as pa ssed and.. of the attitude of the Code .Authority to .1a rd 

your peculic.1r problem. 

The l etter "1 1hich I hav e a lreaC:.y ·.r ri tten you \/ill h ave 

covered the subject of qn applicat ion to the Administr ator for the 

setting up of l earner p rovisi on s. This cG.n be duly fil ed \?ith the 

suppo:cting ev idence nhich I have sugr,est ed to you. I am sure thut 

the matter will r ece iv e most c arclf u l considera tion . .?l1a t the results will be, I ca nnot p r ed ict be cause just at the ur esent time the 

continuance of a ll code s is under serious &oub t. 

I n r egard to the establishing of diffe r enti a ls betrte en 

i\1issouri c;nG. the Ea.st, it ·.wuld oe ne c e ssa r y for you to p resent t h e 

following evidence, ·oc:.cked by z..ffidavi ts of r e sp onsible pa r tie s other 

tha n yourself: -

l. iJages no·.r being p c:.i<i in your r eg ion for similar 

cla s se s of ~" Orlr ; 

2 . i12g,es pe· i li by yo-~u~ inciustry; p er c ent of labor 

costs to t ot.=. l costs in i:;issouri, z. s comp·r ed with 

similt.-cr f i gt1.r es for the :::>.stern t e r ... i tory . 

3: Zxpens•JS other than l .J..bor costs in y m.J.' r eg ion 

in e}:cess of Bas tern e::-p e.1se s . 

I ha ve asked the Resear ch end PL .. nning Division to a ccumul a t e s om·3 fiF,Ur e s in r egard to the p er cent of l abor co s ts to the 

tot e l costs in the Zast ern Di Tis ion and hope they ·:;ill be abl e o 

secur e this infor!nation. The r emainder of the infon'l'Ja tion you Hou ld 

have to secur e so that it could be ·or e s en t ed 1n br i er fona , sup9orted 

by the necessary a ffidavits. 

As y ou p oint out , t he applica tion f or l earner provisions 

ar e '" i thin the u owers of the .1.1-d..:ninistr.::t tor to nt . A:p_plica tion f or 

the s e tting u·9 ~f ci. i ffer enti a ls, I bJTI af r a id, nould requir £' an amenclment of the Code c.' nd this noul<i have to go, in the f irst ins t a nc e , 

throug h the Code Au.ti.1ori ty . I f , ho·aev er, 'OU '7er c blocked t he r e , JOU 

could take t he ma tter up ·.1 i th the A<i.minis trc tor. I r:oul , ho lever, on 

the ·:1hole, advis e you to 1.7 a i t u .... '1 til Cong rer.:s has e--c_pr ess ed i t sel f mo r e 

dofini t e ly c;.s to the fut ur e of a ll Code s , a s it mGy- b e u nne c e ssar y t o 

suggest furthe r 2.mendmen.ts a t t he pres ent ti·ae . 

ENC 

9811 

Jours truly , 

Ho·7ell '"' 1eney 

- - J 
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COD:£ ALJTHO:ct.ITY 

.~.U)I:;S I H.\}JD3.AG Il{J)UST .. tY 

~H7 i'IFTH ..,i_V~lWE 

NE~7 YORK 

April 26, 1935 

Mr . 0. W. Pear son 

Artificial ? lo--fer & Feather Industry 

8 West 07 Street 

Ne,.-.r York City 

Denr i:IrA Pearson: 

The i,ie eker ·co . h c...s p etit ioneG. ti.te .Administra tion f or per mis? ion to e :1p loy l e.:: r ners a t l ess than 

the Code ·.:ages. A copy of t he ir r e quest i s att e.ched 

hereto. 

i .. ill ;-/ ou kL1dl y ind icate on this notice, 

'Hhether you approve or dis ayprove g r antine; the request 

of the i1ieeker Co., o.nd r e t urn to the offi ce of the Code . 

Authorit y . 

.A.i-ti: AS 

enc . 

Vel7 truly y ours, 

CODE _4_UTHORITY 

L_~IES 1 HA1m~AG I~DUSTRY 

A. Mittenthal 

Code Director 

I APPROVE the petition of the Ueeker Co. to employ learners 

at l e ss than the Code uages •. 

(Signed) ______________________ __ 

I DISA.PP .. OVE the pe tition of t he i1Ieek:e r Co. to employ learners 

at l e ss than the Code '.7ages. 

(Signed ) 
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CODE AU;rHO_ ITY 

LXDI3 S 1 g_ ~;;.J] G I:rD STRY 

34? 2 IFTE _ VENUE 

y 

Col. TI'al ter l.I2.ngu;n 

Deputy Adninistra tor 

Comi 1e r ce Buil ding 

Fa in ton, D. C. 

Den.r Col. bl.:mgum: 

-m · YORK 

.April 26 , 1935 

The Code Aut ho:ri t y ha.s deni oG. the :9et i tion of the iAeeker Co ., 

Joylin, i·Hssouri f or ~Je rnission to employ e~ rner s ut l ess than 

the Cocie ';iages , for tl e f ollo :v ing re..;.so.ls : 

"Joplin, iissouri is locu t ed 1400 11 il e s frora 1~ -J ':'J !or~c City . 

Pra ctically [' 11 l ad i es 1 hu1dba.rrs r-; r e manufactured r concerns 

in Ne 1 York City c.:nd thc- t immed i a t e vicini ty , where there are 

several hundred manufac t u r e rs, la:cge and s:ua ll. 11 

\Ve c annot agr ee th;J.t a ny ua!lufacturer is 1ancl..i c['pyed 

by beinr; loc .1ted 1400 r.1 il6s f ro ~~en York Ci ty . New 

Y:or :: City is not t l e geogr c:9h ico..l C8nter of tne United 

Stat es , a nd ne ither is it the distrib11ti!lg center for 

the h a ndbag i ndustr,/ i n the uni t ed St :.:~ tes . Jop lin, 

!.1issouri is mo r e centrally l ocated f or distrib·u.tion 

then a r e fact ori es locc.tted in ~Jew York City. It is 

true· t hat the Eeck""r Co. mc:y find tha t the~r are at a 

dis dv o,nt '-~ge for distribution ln the Jeu En{~ nd or 

ivfiddle Atl c:.ntic St,_ tes , hnt theJ-' en joy ::.n equal advant age in t he Middle ·:est I so-l tl1'713S t I No rt'• '-! est and Pacific 

Coast t e r r itorie s. The L1eecer Co . employ mo r e than 18 

traveling s a lesmen nho concentr0te on tnls territory . 

11Neerly 100 ~ 01. the mat ric~. ls u s ed in fo.bri cat inr, l aciies 1 l·al1dba "s, consisting of l ea tl er, met 2.l f r ames , silks, mirrors, paper, 

wadding , buttons, b 3cking , clo th, cement, z i pper s , ~nd a few 

other i terns, are ::;>urchaseci in Ne .7 York City and in the .c e'.7 England 

Str;..tes. The l1Ieeker Co. in purcno.sing suc~1 ma teric-ls, is n2nclic apped L1 compotition -.vith the Ne 1.·.r York manuf a cturers, in tnat 

hea~r freight, express and parc el po •. t charges have to be paid ; 

~1ar2;es that tne !~e':l York .nc.nufacturer cloes not have to bear. 

These cna.r ge s, in c..dci ition to tra··elin;; e··;:>enses going to mer et , 

telegra9h and otner expenses, anounted to 2. 2o of our g ross sa les 

f or the y ear l S34 , an e·:pe.'lse t11e rTen Yo r::..C m .n f~.cture r does l1ot 

have . N GW York bei:::l6 a style center' l t is .lecessary t a the 
9811 

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i.Ieeker Co. send re:9resent at i ves to He'.i York City and vicinity 

frequently du ring the ye .:_ r to buy materia ls a nd contact for 

new s t ;-,-l es , observe style c~1 nges ,:nd e.scertain style trends, 

the handbag business -being a r , p idly changing style :9roposi tion. 11 

Their claim that one hundred per cent of the materials 

uned for f abricating ladi es l handbags are purchased in 

Non York City and the Ne\7 Engle.nci Sts.tes is not absolutely 

acc,.ll'a te. A grea t deal of tl1e l eather they use is purchased from factories loca ted in rHl naulcee, iJisconsin and 

Girard., Ohio. This a}plies :oc:rticularly to calf leather 

end steer hicies. The fact tha t they have to pay freight 

and exoress cho..r ge s on ra:r ma terials shipped from eastern 

-points :.:.nd th2.t the ir travelinb expenses to t_he Ne·.v York 

mG!rket amount in tot,, l to 2,~ does not prove that this 

po:. rcent a ge r epr e sents a disadvantage . Ec\stern manufactur ers a lso h ave to pa:r tr.:.nsp ort:.:. tion ch,·rge s on many 

of tb.eir r av materiDls. \!e have not sufficient data to 

sho·.1 the percent age that this i tern bea rs to their total 

cost. 17hatever disc.dv;:..n t uge t here may b e in payment of 

tr ansportation clw r ge s to Jo=o lin, Missouri, on raw marteria l s, it is f ully off set by the .::- dv G..J. t .::.ge the i~ieek er Co . 

lla s in being able to deliver the ir finished product at 

lower trans:porta tion che.r r:e s to concerns loca ted in adjac ent t e rritories. The Me eker Co. includes in this amount, 

the ex:9e:1se of coming to Ter.,r York to conta ct new styles, 

obs erve sty le chc:.nge s and eastern styl e trends. The New 

Yor)>:: m211uf a ctur·2rs g o to Paris for t he sane purposes and 

cop~r sty l es for the l,:e eker Co. to cop- • 

11The ee.stern manufact;__1.rers locc•.t e d i:.~ 1\Jew York City a nd vicinity, 

~.~· e ther e a re many factorie s , h~ve en a.bundonc e of s~illed labor 

to drmv f rom. Here in Jop lin, Mis.souri, ther e are no other h andbag 

manufa ctu r ers, mal~ing our labor situa tio.n very difficult, as there 

a r e peak s easons of manufacturing at which time, in the absence of 

tro.i ned help , ne a r e compelled to employ lea rners who :cno'.7 nothing 

r;ha tever of our 1 ine of r;ork a _ld v1h o in most c a ses have had no 

factory experi enc e of any :dnd ·;;hat ever . 11 

The skill ed l a.bor is con:f in eo. a lmost entirely to New Yorl~ 

City •.vhere only 25,~ of t:ne industry is non loca ted. All 

f a ctories outs icie of Nev.,r York h od no skilled l abor to 

st: rt with, e..nd. y;er e corm?e ll eO.. t o break in neF help o:-:ho 

never .7 or ~eCi. in th e i :1dustry , in cities much sma ller than 

Jo··Jlin, Ivio . The only a dvant age tha t tney ha d over the 

f a ctories locateci in Neu York City l'ias the fact that they 

cou ld emyloy the ir n orkers a t the minimum w2.ge of $14 a 

\-.re ~< , r1 hereas the manufactur ers in Ne :r York City have a 

high l y organized Union 'il ith c l assificat ion of -r.rorkers, and 

minimw-u wage sca les, for most branches , of $37 . 50 for 37~} 

hours of ··:ork; \thereas f a ctories outside of Ne7 York City, 

inclucling the lAeeke r Co . i7 ork 40 hours a week . 
9811 

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Fa ctories non loca ting i n the eastern cities are 

mostly in localities Dhere there has never been a 

h a ndbag :.:'actory , and ~-rhere every \7 0r~c r is recruited 

from other industries, not even kindred. These manuf a cturers equi ? their factories with eve r y moder~ machine t hat has been introduced in the industr~ during 

the past f ive years, and a s a result, a gr ea t oany of 

the oper a tions f ormerl y ?erforned by skilled 1orkers 

is n0\7 per f ormed by ne\7 ,-·orkers '!Orking on a machine . 

The Meeker Co., has bee n in business in Jo in , o. 

for over 25 y e0.rs. At one tiJ:1e, they had one of the 

l 0rgest 0usinesses in t he industry, and employed over 

400 peo:9l e . At the :9r esent time, they em)loy on the 

c:we:i:- age of 156 peop le in ti1e ir h a..'1d.bug dep,'rtme n t, (see 

e::r...hibi t t aken from the r ecords) -vhich is proof tha t 

the Meeker Co .. has built U:? a r ese rve sup9ly of l 8.bor 

Tiho they ~L ll up on vhenever ne cessa r y , since there 

ar e no competing f a ctories in Jop lin or vicinity . I t 

.is mor e than likel y tha t tfl.ese 1

:rorke rs are avail able to 

them at all times. 

HWe have appealed to the ::.J:L1A ... ldministra tors in Wa.shing ton a nd to 

.the Code .Authority fo r the Ladies' Ha nd.bc:.g Code, located in Ne\7 

York, for the p rivilege of e;upl o:ri:J.g l earne:·s at l ess than the 

minimum 'i7oge the Code c c.r:ries, but have in ev er zr ca se been turned 

do·wn or our ) l eas ent ir e l y i g nor ed , although the Code tha t is no 

in effect pro-rides thC1 t the Administra tor m13J' , if he se es fit , provide for ~he emyioyr.1e!1 t of l ec.rners a t l ess tha~ t:1e l!linimum \7age 

for a short ~cri ed . 11 

The l.1eelcer Co. com~ l a.ined tha t the ir a o·Jeals to t e Code 

Authori t •r for ·oer mission to em-Jlo•r l ear ners a t l ess than c.. ..:.... ..... Cl 

the minir:m;n .7a[;e h a s been t \.:rYJ. ed donn. The fact is, t1eir 

apylic£ tions were a ccorded the sru1e consideration t~ a t . ere 

g iyen to similar requests for l ear ne rs by other nemb er s of 

t he incl:u.st r y ; in s ome c a ses t ese ap)licatio:tls CaJne f rom 

nei7 f actories locA-ted in to':ms '7hc r e no han<ibc:- · factory has 

ever existed, a.'1d they ry er e not permitt ed to employ learne rs 

at l e ss than the minimu1n rTage . T'1e req:-J.e st of t 1 e i,ieeker Co . 

for a n ex cep tion from t he minimum Tiage r a te may not be int ended for l earne:;: s, but ':7 ould be made to appl y to former 

u orker s whom t hey seek to r eeia2_Jloy . 

"The Code Authority being loca teQ. i ll Neu Yor~<: City, corrry osed of a 

New York p ersonne l, it is evident t a t they consider the handbaf: 

ma nufacturing business from a metro::_')oli tan, eo ste rn , or £ e'.? York 

standpoint only, end a re not inclined to g ive any consideration to 

our isol;:::_ted position in the industry ; yet ·-,e pay Code dues regularly and. ab i de by i t in every ~-;ay , gett i ng nothinG out of it except this added e:c-pense and d e trimental effects. 11 
9811 

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The Co d.e .d.uthorJ.t r is not com )Osec. of ·-1.::nuro cturers 

·,ri th ul a nts loc:...tec.. in ::e\-: ";or;..: Ci t~r c lone . The present •- membership of the Colle Authority is ten, and the plants 

t~ ey r e.Jr e sent a.1·e as f ollo·1 s: 

] agcraft i.ifg . Inc. 

Gol<isJaith 3ros. !ifg. Co. 

Ked in B:to G . 

Koret , Inc. 

A. I. Liag id Co. 

{ers Mfg . Co . 

i.iirro Leather Goods Co . 

Sol Uutt eryerl, Inc . 

Sch oenfel d_ ~ ·.7olf, Inc. 

Sc e~~ ol ? u ~eeks , I nc . 

:1e;-7 York City 

;~_llento\7n, Pa. 

iiudson, :N. Y. He'.7 York City 

ien York City 

So . lJorwalk, Conn. 

Chicago, Ill. 

NeTI Bedford, Uass. 

Trenton, H. J . He·-:r York City 

Some of these manufactl.li'ers moved their plants to -olaces 

outside of Ne'.J York Ci t v' recru iting the ir 'wo1·kers from the 

unemJ?loyed in tl1eir loc'- 1 C08ffi'W1i ti e s . Some factories engaging 200 or 1r1 0re ·,;or)r;:e rs have SO; Of the tot al nerJ \70rkers 

'iJithout previous e:~pe ri nc , 'but in no ca se \~r ere they permitte<i to pay l e ss than the :ninimum to such beginners. 

The i-,iid'.IE'st ter::citory have one rep resent.J.tive on the Code 

Authority ou t of a. tot()l of t en r::iember s and t hey produce 

about t "'n p,e r cent of the tot<:.l production of the industry. 

"We have no ·:;e.--;e iiiffe:::en tiul to ·.1hich ·:e thin:.( ne are justly entitled , :-;ncl •:hich \7<.s 9r ovideci f or in the oric;ina l draft of the 

h ,:mdbag Code ' out \7hich provision \'i8.S left out' \78 found, 'Then the 

handbag Code fin;:-:: lly ·:a s ru1now"lced as being in· effect. As mentioned, t her e ls a l earners' yrovision in the Code , but the Admi n istra tor lla s never seen f ir to g i ve us any relief under it. 

The net r esults to us under the Code have been tha t Tie are compelled to pay the S2'tle rnilLmum n?.ge i'or ine ::pe rienced hel-p, ~Ti thout even 2. sho:ct .LJe riod in il ich to teo. ch them to do om· kind of 

'.7o:rk, that the l e;,·1 York r'lanuf c;.cturer is compelled to pay for ex-

:::') er i enced help. The hand ict:p to u s can be readily seen. n 

The Meeker Co . sh ould consider that if the provisions in 

the Code rel 3. ti:..1g to lec,rners ··va s made eff ective for them, 

it '.roulcl also a:p J to ever:-r other member in the industry, 

':ri th tho e ffect of equ2.li ing a wage l ess than the minimum 

throughout t ho industry, :llich is the ver-J 0:9 osi te of ';!hat 

N"HA is a ttem'?ting to accomp lish. ~he · Code r~ s destroyed 

com eti tion ba sed solely on the lm;est labor costs, and as 

a r esult, it has g iven leg itina t G and honest manufacturers 

like t ' e 1iee:..Cer Co. an ort':.nit r to comoete on st;>rle, service and i r t eriuls. 
9811 

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liThe ieeke r Company 1 s factory payroll for 1@34 ras $125 ,80o . OO , 

rlh ich is 30 . 1% of our vo l .1Jne of s. l es for the .fear, \/hich is a 

19;~ increa s e ov er 1933. Our ye · r ' s o_1er c; tion for 19 34 sho':7ing a 

net loss. As a r esul t of these ha:.1ciica·os , ··:e nave ber>n forced 

to discontinue mak ing cer tain compe tit e lines, line tha the 

eastern manufactur ers apparentl y are makin ~ successfu lly . Our 

business so f ar th is ye~.,;r being 33-l /3,~ less i volume than 1934. 

Ne turally we ar e empl oying less people at the present time than 

we were employ ing t year t.!nd would employ under fair competitive conditions. As an eAamp l e , st year at this time we . er e 

employing 176 peopl e , \ih il e a t pr esent r1e are employing 2. 11 

Th e l.1eek er Compa.n;)' 1 s payr oll f or 1934 shows an increase 

of onl y 19,b ov er 1933 , which was the l owest '7age l evel 

i n the his tory of t he industr y . e consider 19,; a ver y 

·l ow incr ease . If the factory pay r ol l is 20,b of t he s..1l es 

vo l ume, ,~ . i ncr ease in the factor y payroll is only an incr ea s e of 5. 7,b based on the sales 'TOlume . At this rate , 

a bag of e~ual value , se lling for 3 vhol esale in 1933 , 

would have to be sold for $3 .17 in 1934 , lhich is not an 

· exorbitant increa se , and thi s increase miGht ea ily be 

absorbed by ~d.u cing other i t ern s of cost , :;hich ;Jill permit the manufa ctlrr er to maintai n the or i ginal $3 price . 

A handbag is made up of at l east 20 ci iffer ent ~~erials 

and r equires a t least 50 l abor ouer ati ons. 

The Meeke:.r Company cla i ms they enpl oyed.. 176 '' Or~{e rs last 

ye~~, and employ only 42 worker s no 1. At the ~me time, 

they cl a im t he ir volume of s al es onl y fe l l off 33 l/3%, 

yet they a r e produc ing t his vol ume , n ith only 24~~ of 

their wor kers. Accor ding t o this statement , their per cen -

age of l abor costs is l e ss 1ith 42 :orkers, than it was 

with 176 worker s. The in~ season 0.1 1934 uas very bad 

thr oughout t he i ndustry , most of the f actories re9or ted 

33 l/3 ~ to 50:~ l e ss business than in tne Spring of 1933. 

The Meeker Co . evident l y Has no exception, an the loss of 

33 1/3~ in vo~ume of s al es Tias not due to a~r reasons 

given by t hem. 

"Another hand icap to nh ich consi der ation should be .o·iven is on 

account of our lont; d ist a nc e f r om material market '7e a r e compelled 

to carry heavy invent ori es that' t he eastern mn.nufac urers do no 

have t o car r y . 11 

The nece ssi ty f or ca rry ing heav. inventories cannot be 

attributed to NrtA, nor does it justify a lower 1a - e rate 

t o be pai d to rke . 

"Rel at i ve to a wage diffe r ent ial 7h ich we feel we a r justly 

entitl ed to under t he c i rcumstanc es as enumera ed , it s1ould 

be borne in mind that t he co s:t of livins in Joplin, · issouri 
9811 

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~s much les s than the cost o: living in the eastern and 

metropolitan centers. If we ;;,' ere conced ea. t he iff rentic-~ 

l'Thich our handica.p9ed position in this fi eld of mJ.nufacture 

:,:> lainly i:nd ica.t ed V.'e are entitl ed to, \7 e '70uld b e in a position to enploy mor e labor than we are able to em:9loy 2.t 

present, as '.Je could again r e sume lines Yve have h :::.cl. to discontinue , thus being more of a benefit to our community and 

be on a better bo.sis as a firm. The Ueeker Co . h a s been in 

business more thc:n 25 ;rears, enci. has never been located any-

·-;here exc9pt here in Joplin. Our proc.i.ucts are sold to dep&rtment stores and other ret e.il outlets throughout the entire United Sta.t es." 

The cost of living in Joplin, Mo. is no less than it 

is in Sussex, Neg J~rsey, Clinton, Jass. , or Boye rtown, 

Pa ., or othe r to ~:m s in hich handbag factories are loca ted. In the New Yor~{ area the r;orkers are paid about 

50~~ more ~:m ti1e average than the ~,i ek r Co . :pays its 

employees on the <.1. rage, Md u:-1.less the Beeker Co . 

seeks to maintain the_ lowes t living stand~rds in Joplin, 

ivlo. ther e is no justification for their claim on the 

· ba sis of lower living costs in Jop lin, Mo . 

"Another he.ndicap of some Ln~) ort nc e is that in selling our 

product in sope of the bib ec stern cities, particularly New 

York City, to make such s u.les we are compelled to pay the 

tra nsport a tion charges to the customer to equalize the transp orta tion cost '.v i tf'l tbct .of the manufacturer in New York close 

to the custome r \iThere no transporto.tion charges are involved." 

It is tru.e tha t t he:r a re n.t a disadvantag e ~-:hen they 

try to s e ll the ir produc t in l'Jerlf Yori{ City nhere one 

hundred m2nufa ctn rers are locc t ed , sufficient to care 

for a ll the needs a: t he trade in· Ne':: York. On the 

other hcJ.nd, a NeH York mOJ."l'l.Uacturer is a t . a disadvant age if ~e tries to se li his p roduct in Kansas City, 

·!Iissouri in compet ition ·;lith the Meei-cer Co . No ret ?.iler in Nm•1 York City is \\T illing to ·buy goods in 

Joplin, Mo. and -~)ay transp ortaion ch .,.rges, wnen he can 

buy goods of equ.ll va.lue a nd style in his own market, 

delive r ed free of charge . The rea l purpose of a New 

1ork selling office for a factory far removed from 

"'~e\? York, is for the purp ose of selling to out of town 

stores who visit the Ne\7 York ma rket. 

11Another c.ngl e to ou r situation is tha t 'rlb.ile we are the 

only he.ndbag manufac tur e r in our town, or for that matter, 

in this entire section, - in fact, t he l a rge st handbag 

manufacturer we st of the 1,1 ississi9pi J.iver - there are in 

our cit~' g arment m:. nufacture:c s, and other ~nanufacturers in 

other towns in our immeciia te vicinity. Also, there are a 

numbe::..~ of shoe manufactur ers not in our ci tv but in our v ' 
- 417-

vicinity, none of 'fTilOm. e r e co:1pel led to JI=•Y the hi.c;h minimum r ate of ·oa,y 

which we have, and a ll other lines of such mc:nufacturer have a l earners 

provision in their Code, Tiher eby t hey can em;l oy green hel) for a certain 

length of time at SO% of the minimUI!l w ... ge until they l earn , at l east in 

a measure, hm1 to :9e r;form the Fork thoy are doin& in a satisfactory volume. Of course, in these other lines \7here there a r e a lot of shoe factories in the state, a lot of garment manufactur ers in the State, they 

had sufficient r epr esentation wi:1en their codes '.7e r e formulated to exert 

an influence so as to enable them to get fa1r consideration . . e have 

had no one to coop e1·ate wi th us 1n our line of manufacture. Ther efore, 

the Code we:..~ orm~~ ~). ted and 9ut into effect and is being oper ated today 

solely f'rom the vie\·i:90int of the eastern or 1Te\1 York manufacturers a nd 

no consideration g iven to our concern.n 

If conceded a .differenti a l in wage r a te, the i. 1eeker Co. claims they 

would be in a lJOsi tion to em:9loy more l abor. The situation '.!Ould 

app.ly alike to an~r manufacturer in the industry vhe r ev e r located, 

if he were accorded this advant age over a ll of his com0etitors in 

the industry. 

1111e cannot maintain a re~Jresentative in i1ashingt on to attend a ll the 

hearing s and ma..'k: e effort to bet co:16.i tions or rulings that ''e a r e justly 

entitled to. Therefor e , our co:.1di tion must be r el i ved or els e ...-re \7ill 

be com:pelled to ya s s out of this line of ma.1ufac ture, as much as we 

JJOuld regret to do so. If ·:Je are fo rced f ron t his field of manufacturing, it \7ill mean the loss of employment for arouncl 200 )eopl e , leaving 

our town \7 ith out a :9ayroll \7hich i s much ne eded, a nd eny heads of families without em} loyment and us wi tl1 a lot of equi pment for ·-:hich Tie 

will have no use. Our •r or r ess in this f i el d. '7i ll have been made in vain. 11 

The i.Jleelmr Com )c;,.ny ' s ~J le < F ·1at t Lley a r e a l one in tni s "1ar ticular 

territory is not due to L..fly unfortunate circUl stance. They evidently intended it to be a:1 advantage , other·1ise th ~' \IOuld not have 

made it their choice. _·ster 25 years , they ,have just coTlle to the 

reali zation that they ar e isola t ed. T11e ma nufacture of handb8.F's is 

not a matter of geogrcp.lical loca tion . I t is most ~r the efficiency 

of Jeration in a p l ant, no matter '.'il er e located. · e find t.~1e most 

efficient plants, those doinb the large st vo l ume of business , located in cities i n ?ennsyl 'rania .:md Connecti cut . Tl1ese plcmts are 

O:Qer a ting efficiei1tl:r; their neJlagement is a live end wide a 1a!ce , 

emp loying and creatinE e~ systems and ~achinerJ to Jroduce their 

product at t he lowest costs , while oaying Code \7<lges anu rnore . 

11 In gener2l, the Code ve a re oper a tin; uncier nm-1, that is functioning 

against the int erest of our business, is forcing us out of line~ of manlfacturing , anu. il.' continued, r!i l l in o.ll probability force us entirely 

out of the h -:ndbag business, , nd. to which '·'e a r e corauelleO. to ne:y Code 

fees tha t last year c.tmounted t o more than $l,OOO . U') aye r duri hich , 

on account of the r e striction under \7nic \.'e ar8 comuelled to ooerate , 

the heavy taxes of one kind or a.n.o ther t hat '.ve i:wve to oay , c~ u.r ed s to 

do a yea r Is busi:'less not at a profi t , but at r~ neav;,r net losr ior tne 

year t s opere?.tions, a loss ,-,e cannot continue to bear· 11 

9811 
-418-

As f a r as we know, NRA has not put a single h a ndbag manufacturer 

out of business, but if exceptions to the wage rate.s are granted 

to one or a fe-.:r in the industry, it is likely to put a great many 

out of business. 

The Code fee s pe.i6. by the !;·ieeker Co. during the past year we re on the 

sa.me basis paid by every other memb,E?_r of .the industry. Besides, 25% of 

the amount tha t '<Va s pe3:id by each member 'vas r efunded. 

STATISTICS 

The chart shows the numb er of workers employed by the Meeker Co. for 

each month rep orted from the effecd.ve date of the issua.nce of le.bels, 

July 2, 1934. The :9ea.1c month was 226 vrorkers, the low, 112 in the m_onth 

of July , which normally is the slowest production month of the year. 

In the peak month, 148 out of a total of 213 workers employed received 

the minimum ~age of 35¢ an hour, and only one qor1<er received over $35. 

a week. In the dullest month, July, 81 workers out of 112 received the 

minimum wage of 35¢· an hour, and only one worker received over $35. a 

week . 

The Meeker Co. manuf a cture handbags that r e tail from $2.95 to $10.00 

each. They have a reput a tion for mal<i ag a cleG.n, we ll made product, 

which ca n only be produced by experienced workers. 

Their volu.llle of s a les on handbe.gs for the year v.r c: s $340,493 . If, as 

stated by t he eeker Co. t h is amount is 33 1/ 3~~ les;;; than their normal 

business, their yroduction of handbags wou l d amount to more than 

$ 500 , 000 a year in a normal year . In a c..L·. ition to handbags, they manufacture an ext ensi ve line of men 1 s wallets and novel ties, \. hich do not 

come under the l adies 1 hc:mdbag code. 

From our knowledge of existing conditions in the industry , also from a 

perso nal investigation of the p l ant and worki ng c6inditions made by the 

Code Director of Complianc e , l.iax Berko';Vitz, and based uy on the statistics 

of the ir business furnished by the l~eeke r Co. , we ar·e convinced they are 

not entitled to an except ion to the Code request ed by them. 

9811 

Ver y truly yours, 

CODE AUTI-:IO.TH TY 

LADIES 1 HANDBAG INDUSTRY 

A. ih t tentha l 

Code Director 
Number 

of 

Employ-

.tO NTH ees 

July, 1934 112 

\ugust, 1934 164 

5eptember 1 1934 1?8 

~ctober, 1934 226 

ove ber, 1934 213 

December, 1934 122 

January, 1935 138 

February, 1935 138 

·tvfarch, 1935 118 

- 419-

LiE:bKER CO !JfP AHY 

JOPLIN, EO. 

PAYROLL STATIS ICS 

~Tumber ~!umber 

Earning Earning 

$14 per $15 to $20 

week ner week 

81 19 

110 34 

115 42 

139 ·19 

148 41 

76 25 

88 28 

92 24 

76 22 

S.AL:SS P..E?ORTS 

!~umbe r 1 umber 

Earn inc; Earning 

$20 to $35 $35 . 00 

-oe r week and u-o 

11 1 

19 1 

20 1 

28 1 

23 1 

20 1 

21 1 

21 1 

19 1 

!,iarch 26 , 1934 to t arch 25 , ·193·5, Inclusive. 

.iarch 26 through March 31, 1934 

April ) 

i:lay 

June 

) 

) 

July ) 

Augu.st, 1934 

September, 1934 

Octooer, 1934 

~~ ovewbe r, 1934 

December, 1934 

January, 1935 

February, 1935 

i,iarch 1 throuch 25, 193;:3 

9811 

$5,100 . 00 

59,449 , 00 

38 ,6t>2 . 00 

3'1 ,599 . 00 

5~5 , 632. 00 

70 , 32? . 00 

15, 753 . 00 

6,504. 00 

27 , 435 . 00 

2a ,o· 2. 00 $340 , 493 . 00 
-420-

lJlay 2, 1935 

Mr. c. Meeker 

President, The Ieeker Company, Inc. 

Joplin, Missouri 

Dear Ur. lv[eeker : 

Your letter of April 30 with its enclosures, 

addressed to i·•1r. Walter l.langum , Deputy Administrator, of 

this Division , has be0n received during his absence. 

A l e tter addressed to i,ir. Langum on the same 

subj e ct has just been r e ceived from the :donor able Dei·Jey 

Short, Cong ressmen. 

As l..lr. ~.:angum had the interview with him and 

with I.Ir. Cleveland A. 1Te·.;rton to whicn you have ref er:ced, 

we are simp l y acknowledging receip t of your letter without attem ot ing an extended r epl y . 

We ex:J? ect l,[r. i.:langum back ',7i thin 0. day or t\70 

and we will refer botJ.l letters to him p romptly upon his 

return. We are confident that he will wish to give these 

letters his p ersonal attention and the ca reful consideration that the imp ortance of the matter deserves. 

9811 

Very truly yours, 

Q11en A. Locke 

Assist~~t Deputy Administrator 

Textile Division 
- 422-

When the Code went into effect we asked for exceptions o the minimum 

wage, filing our brief in due form and going befor e one of the Darrow 

committ ee in Kansas City, a iAr . lliann, eA.'J)laining our position and :~hi le 

waiting for a decision we ~ad in effect a minimum of 30¢ per hour for 

some of our help, Yet the Oode Authority Phen they got ready to issue 

labels would not ship us l abel s until Tie.had paid back about·$800 . 00 

that they termed back wages to bring the minim~ u~ to $14.00, or 35¢ 

per hour. And now I find that the Virginia Art Studios have labels 

in their product , yet have not been compelled b;r the Code Authority to 

pay the Code minimum, and there may be others among the· ninety-one noncompliance cases operating as this concern is. 

All of this may not be of interest to you in the situation, yet I think 

it does show that 'ive haven't been treated fair under the Code. I am 

not complaining against the Lynchburg, Virginia concern; their yosition 

is somewhat similaR to ours and they should not be made to come under 

the Code on the same basis as the Ne~ York and that particular vicinity, 

where nearly all of the manufacturers are located, Pith their market for 

raw mat erial and everything that goes into handbags exceDt l abor, right 

at their door. 

In considering our case, I wi sh you nould again refer to our brief, 

left with you. The se New York fellows cla im a great success for the 

Code, yet they have ninety-one cases of non-compliance out of three hundred and thirty-seven manufacturers that they claim are in the industry, 

and during the past feu weeks they have alloPed the eastern manufacturers 

to dump merchandise on the market at rices it could not be produced for 

until the E<?-ster market was virtually demoralized. When I was East recently the New York papers were full of special sales on fine handbags 

at · ridiculously low pri ces, ye t every producer of these bags was under 

the Code, that t he Hew York cro\7d claims is such a grand success. 

The Code has ·worked nothing but a hardshi~) on us. As I :p reviously advised, in our vicinity there are sho~ manufacturers, shirt manufacturers, 

cigar manufacturers, and others, none of whom have t e high minimum Page 

that we have, and all of the~ have a period in whicl they can vork an 

absolutely green employee for a certain l ength of time until they get 

familiar ';7i th their '.-:-ork at less than the minimum; 80,b of the minimum 

in most cases, I think. One garment manufacturer vho employ about one 

hundred people here in our to~n are able to ~ork their neP peopl e Tihom 

they are trying to teach the business at 50~ of their $12. 00 minimum 

for several weeks. Shoe concer ns at 80~ of the minimum f or six weeks 

and they have a minimum for female labor of 30¢ per hour. Cigar manufacturers here, and there~.c:G"-e t·:ro of them, I understand from very r eliable authority, paid little or no attention to the Code minimum. 

So all in all, I know that no consideration nas been Fiv en to our isolated position in this industry. 

I am enclosing you a l etter that will at l east enlight en you as o e 

New York crowd's attitude tonard us when the Code as being formed . 

This letter from Mr. Mittenthal I 11ill ask you to return. I don ' like 

to go on record as being constantl.v complaining against these fellons , .. . .. -

9811 
Mr. Walter Mangum, 

Textile Divi~ion , 

Washington , . c. 

Dear Mr. · ·Mangum: 

· .. 

-421-

THE 1viE2KER COM::- A1l"Y , INC. 

Fine Le8~~ r Goods 

Joplin, ~issouri 

Deputy Administrator 

T. R. .A. 

April 30, 1935 

With further refe rence to yours of April 13th, I am enc;osing herewi th1 as you hPve '.requested, lance sheet f9r the years 19.33 and 1934; 

These balance sheets are t~ken out 'of our public . C'.CCOUI1ta.nt ~ s' annual 

report on our. ·business. The·s·e accountant's . are . ~~~~d~K-y..r t? .&.· Dobson, 

Joplin Nationa.l :Bank BuiJdingj Jo1Jlin, tAissouti . We ··can furnJ..sh you · 

1 

_fur.tber-- information if ·such is necess c.ry, or you ' can'._.if you wish · i 

.communicate direct with these accountants. ·! . · · 

I am a lso encl o sing vrhat I think is the information asked for in the 

second paragr aph of your letter. You will note . we show . . . for ~eoruary 'f 

and March a big shrinkage ·in the numb'er of -peo-ple employed ·~ d when .. 

considerat ion is g iven to the fact t ha t ell' ·employees for 'the mqnths. 

. renor ted, al th(J)ugh m::my of the!n working only · pe.rt t'ime as the .total 

pours will sLow and a small e r- amount of g o.ods manufactured, you can 

readily see ho'v our business hC'ls deteriorated. April 'would show as 

bad or wo::se condi tion then tvlarch . 

Mr. Cleve l C"nd p. Nerton n.: s just writt en :·me relative to the intervic 

that he, in corn•J·..,r:. ~ri : n Cor:fT 0 ss1nan Dewey Short, h~ d with you recently, 

and h es. ~dvis <:- ::1 tllr' t, t.. .'lr:' F2u Yorl.c cr owd insists we are making m·oney 

hand ave :- fi ;:L Th.E::sc :~3 ' Yc:-k fe llov's knovr our positi on, but as l 

pr.eviou ly edv l sed , it if my onini cn , based on e.x:Perfenc·e, that they do . 

. not ca?.'e .~ t:1 in g 2b0ut our po~i tion in tnis industty. It is my honest 

opini.on thet they feel that the ha.ndb 2g manufe.cturing business 'is 8n 

eastern business. I L'li )' t be \~~Trang in some of my conclusions regarding 

these fello1's in the east , but I don't think so. . 

In a bulletin put out by the Code Authority dated march 21st., they 

list ninety-one cases pendin~ fo r non-com1Jliance with the Code. I wonder 

if you fell a ns. in ·washinr;ton-know the de tails of· these non-compliance case 

Of course , I do not, but it wouldn't ·surprise me if mpny of them were 

no~ in the same .class as that uf the .' Vitginia Art Studio of Lynchburg, 

Virginie who epparently heve never complied with the miniliD.lm wage, and thi 

concern in Ly nchb,.1rg is erfectl y justified in my opinion in not complying 

It is r epor ted I think thRt t he Virg ini a Art Studios ere doing a big busine~ s. They Dav be, but ,-t this time of the year they manufacture a particul a r ty-pe of bRg that f r rn a u i g nart of their year 1 s business, and if · 

l ooks like they a r e doing a big bu siness in recePt months it isn 1 t because 

they a r e takin.o· Rdva.ntage of the l owe r wages the·y are peying , but on ac-· 

count of the seasona l bags they are making. 

9811 
- 423-

but I have a business her e to maintain; not R r cn eu loft like mos of 

these fellows, but a bi .. 1nvestment, as you ill note from my balance 

sheets. A building and eClui 9ment ·1hic 1 we orm. On account of this it 

is rather hard to arrive at a decision to pas~ out of any manufac uring 

line; leaving building s and e quipment idle and throwing peonl e o t of 

work, many of whom have virtually been rais ed U:? in this business , a 

business I have been more than t wenty- five years in devel oping and devoting my ene ~J to. 

~ow if I naven 1 t e iv en you details that you want, just call on me; I 

1ant you to cnow that I ~,:) eciate the courtesies extended me v.rhen I was 

Ln your office r ecently b~r your sel f, i.ir. Sm ith and ·lr. Hill. Any deci-

;;ion you arrive at will be satisfactory and i f you wish I can come t o 

7ashing ton again, although it is a long trip . The same day I called on 

:ou I called on l.ir. Howell Cheney, whom I supplied some figures to which 

1e may have passed on to you, and Ti ith whom I have had considerabl e cor-

~es ondence with in r ecent months and who s 5emed to feel when I talked 

~o hi:n in his off ice that our situation out here really deserv es some 

~onsideration. 

rusting that I have no t bor ed you or indulged in any unnecessary comlents on the situation, I am 

Yours very truly, 

Is I c. l.fEEXER 

Presiden t 

THE i~1EEKEd COMPANY , I.r C. 

·.s. On our balance sheet under assets you will note list ed sal esten 's accounts overdrawn. This r eflects t he earnest effort we have 

tade to keep our -Dus iness go inc; since the depression set in in advancng salesmen money to keep t hem going , ther eby keep1ng our ac ~ going 

nd keeping our people em2loyed ; money ne have expected tc r ecover fr om 

he s alesmen when our business again got back on a better basis. 
-424-

May 4, 1935 

' ' 

The Honorable De~ey . Short 

House Office .Building 

Washington, D. c. 

liy dear CongressmM Short: 

Your l etter of April 26 ,,vi th enclosure, 

e,dciressed to Colonel Walter ~angum, Deputy Administrator, was received during his absence this week 

and was acknouledged by tele_phone to your Secretary. 

Colonel l:iangum, who has been giving this 

matter his pers onal att ention since yo:u and lvlr. Newton called upon him the oth er day, informs me that 

he has already be.en in touch with the Code Authority, 

that the matter is hav ing -prouer attention and will 

be' foll.owed closely in ord~r to insure full consideration at the earliest possible moment. 

Sincerely, 

Prentiss t. Coonley 

Code Administration Director 

Textile Division 

9811 
CO'JGRSSS OF TriE IDHTED STATES 

House of Repr esen t a ives 

Uash1ng ton , D. c . 

Co 1. W e.l t er L~ ngum 

Deputy Administrator, r~ , 

washington, ]. c. 

l1iy dear Colonel iianguin : 

A:Jril 2o , 1935. 

I beg to ~) esent a tragic situation a nd res:9e ctfull7 urge 

your STwpathet ic consideration . 

About t YEenty- f i ve years ago, t e ~:eeker Company established 

a ladies 1 handbag cto r~,c in Jo ~) li n, .1 lS ~· ouri. ·hi::; industr:- gre11 until it. became one of t he ~;lo st successful end ttractive Jl entc; in that 

grea t agricultur al a nd inin~ ar ea. 

Tl e Co 9-e Autnorit ; of tne La-:.. i es 1 ]An ' ba,c Indus trJ seet1 

unable to unclerst c...nd t he dif: icul t i e s and a~1dic S under ,-.hicil this 

Com9a.ny i s coupelled. to ~') er :J. t e, c:.nd a s a r esult of th "' our dens imposed , they have lo st :-uono~r \.-0 _tinuously since t1 e co,· e becru e effective. Unless relief is g r an t ed ver:r soon, the ; 1.Ji ll be com _)e lled to 

shut dm-; ~ their :9l ant , anci , o:.: cou rse, t he enoloyees ·1 ill los e • eir 

source of livelihood. 

I am sure it i s not your pur:_)ose, nor i s it the purpose 

a:.:· the }Tational rt.ecove~r Act to destroy a userul i ndustri a l pl an . 

Approx imatel:;r ni net r per c ent of the l adi e s 1 ha d.bags a r e m ufactured 

in NeH York. The Co cle Authority i s established there, and uhile its 

members unde rst and their .')r oble s, they hav e h3cl no e::pe ri ence in a 

f a ctory such as the Eeeker Company i s oper &ting . 

The Ladies' Handbag Cod.e at the ti e of the oublic hearings , 

contained a labor differe'nti 2..l betneen f a ctories in l arge cit i es a.'1d 

those in rura l municipalities. \l'nen tl e L;ee~:er CoiJ_)any r eceiv ed a copy 

of the Code as finally app roved, this differenti£'1 had been eliminated , 

and. it is impossible for them to continue pe ati:v:~ 7it out an a.dequa e 

l abor differential. 

The I•.ieeker Company is 1440 miles a--:1a;; fro ::e\; York and 

hundreds of miles a'.'T&J f r om another handbug facto r y . The mat.eri~lc ~nd 

supplies us ed in h andbags outside of l eather , are .nr nufacturcd in he 

vicin1 t y of ~· e\7 York ...Jlants, '.Ehile this Com Jan-" i s co1 ·)elled to beur a 

substantial burden for f r ei g: t :.:t.nd ex_Jress i·.1 s!1i_JJin-:; these supplies o 

the factory, It is al so com}ellod t? l - J ·~ su1 1 es of stoc~ whicl 

calls for cay i tal ilwestments , not required ·o · tue :·o York comJanies 

because of the ir ro :~ mi r to t he s o1..._rce . 

The Ee eker Co ~Jany is COi:l)ellccl to s e.1<.i. r G )r sc.1ta i vcs 

at frequent inter v e.l s to :~e-,r -... 01'1

: , not o.1ly to bu.' su ' L.cs, b 1t to 

9811 
- 426-

study and observe the styles and an~r developments in order to 'k:ee"Q a..-

breast ·fith the industry . This ex·oens c i s not required b:r t he New York 

f a ctori e s. 

The handb8-to; i ndustrv has a s e a sone.l production. Its -0rincipal market is d1.1J'ing the Ho:..idays. It -r1e c ossa ri l y emp l oys a bout tuice 

as much "liJOrkers duri ng the la ~~ t hal l o:: t he Jear a s re q_uired for t h e 

first hal f . The Hew Yo:ck comp r ni es have a n abundance of skilled l a"Jor . 

The .~ ~{er Com:9any h a s no sup-oly U3JOn wh i ch to ciraw, anci \7hen t he. ) l an t 

ne eds additione.l labor aro1.md the first of J uly , it is necessa r- ; t o use 

1 and l..Ulskilled workers, \Vhile the lTe';.,r York plant s· get an abU!lda11ce 

of skill 8d l abor. 

Under the Code, t h e i: e eke r Company is compelled to 1)a-r the 

full minimum wage to t hese new a nd u :1trai n od '.r or ~~e rs, a burden which 

the Ne~ York factories are no t requir ed to bear. 

There are a nurn1:-er of shirt, over e.l l , and shoe factories 

in the Joplin terri tory, a11d none of tne:.1 are required to p ay mini·1urn 

wages a>1y\7r1ere near as h igh as the l c.d.i es 1 handbag Code requires. As 

a Tesul t of these hanciicaps' the }Jieeker Com an:~ nc.'...S a lready b een f orced 

out of a number of l ines of ·oroO..uct i on wiLl a. re sult tha t its nUDber of .!. 

emp loyees a r e now gr eG.tl:,.r r educed from '-rhat t h ey uer e a t t h is time l a.st 

year. 

An investigation of living costs ilas been made, based 

upon the United St a tes DepartiTient of Labor statistics, Hhich shows t hat 

wo r kers in Joplin, Missouri, can live with the .s ame comforts and necessitie s of life a t less than sixty-five p er cent of the cost required by 

the workers ·in l~ ew York . The carfa r e alone , r equired of the New York 

wo·r kers, is enough to justi fy a substD.nti a l differential ove r the Joplin workers, who have no such expense . i.!any other i t erns could be enumerated. 

The Meeker Com_:? any made an a:r;: 9li ca tion to the Code Authority months ago , to be r elieved f rom the hand icap s r,·h ich a r e destr oying 

the industry. It has r e c eived no sym) ath eti c coo:;> era tion, a nd I respectfully call y our attention to Sec . 3 of Art. 4 of the Code of Fair 

Compet i t ion f or the Ladies 1 Hancibag Industry , ·.-.rhich r eads as follor1 s: 

11Tl'1e Administrator may, under e:x:cep tional circumstances 

and up on such condition s a s he a~' :p re:scribe , '-p errni t a. me!nber 

of the I ndustr• to employ lea.r11ers at r a tes below the minimum 

wage her e in established." 

Because of the tragic p roblen '.:i th whi ch the Meeker Corn_!)any 

is confronted, I espectfull r urge tha t you exercis e t he :9011er invested 

in you under the Code ~~d tha t y ou m&{e such modifications and chan&es 

as will r emove the handicaps '.rhich the Co c.. ny is suffering B.J.'ld which wiL 

save this industry from de struction. 

9811 
The l.1eeker Company has obeyed t: e L E'..W . -t has lived u:p o 

the p rovisions of the Code , and the sur total of t~1o res lts nus far , 

is tnat it is paying ~)p ro mate ly $1000 .)er ~- r in dues to the : .!l .... , 

while moving nearer and nearer to ruin. 

Sinc ·r e ly Yours , 

Der;ey Short 

Uernber or Congr ess 

? • s. I h erewith attach some living cost da t a p r e·o.:.r ed ·oy tl e S a "' istical De:9artment of the; St. Louis Industria l Cl . \:~1.ich ;-; ill show the 

living cost in ~ew Yor~c to b e at l ec-:.st one-third h i her than in Joplin, 

1/issouri . 

9811 
-428-

COST OF LI ?Il~G 

The Un1ted St a t es Bur eau of Labor Statistics for the year 1933 

d etermined t he cost of living for an aver ::tt;e f e.:nil -r o·.:' four per s ons 

wher e the heo..d of the f amily ec;.rned from $900 to $2500 per a ·t1::mm , 1n 

some 9 2 citi e s an<i towns in forty-t·;r o states of t he Union. In determining the cost of living they e..scerta1ned the co st of t i.1e consumption 

of i t erns of food, clot 1in6, h ous e furn 1 ture, house f urnishing s , r ent, 

fue l, light and miscellane ous items i ncl udi n"' insuranc e , amusements, 

t axes, liquor, tobacco, books, tr2.v e l, ne1~:s .:1~oers , lag a: ines, doctor 

bills, b2.rber, sch ool e::-pens e, t c:l G >none , streEt cDr L tre cw.1d so forth. 

On the basis of calcul a tion, it wa.s found t l:at ~1e cost of li 'i n~ 

for t he average ·;w ~{:Ll-; m:.tn 1 s an il r of fm.;.r lJer s ons i n ·_-er.r Yor~{ -was 

$14 28, per 8.m1um ; L1 Chi c ae;o, $1 277 ~J er a ~n rn; .:;,nd. in St. Lo uis, $1219 . 

Since \ve have n (:> officL.1l figur e s on Jo li , : _issouri, He set fort:1 

t hs follmnng t abl e , s i vi t.g t n i s c alcula tioa , based on the s o;Je items 

included i!l the calcula tiJn for the farni l y in Je'r York , for va.rio-,.rJ.s 

cities a.nd. to .~ms wh ich conch tiOi1S are' similar to t hose in Jo lin, and 

cert inl r t he cost of liv i :lf; ~;·: auld. not be h i _;her 1n Jo.:.)lin tirn in the 

following citi e s: ( Tile 10 )Ul c.tion in J O;_J l in , i ssou ri, is aJ.;prox ima tely 

33, 000) 

City Po·::mla tion Cost ol Diving ;) of New Yor~:: 

Hannibal , lvio . 22 , 761 $900 s;;. 03I ~ 

Bellev ille, Ill. 28,425 894 ro r' 4 ,-. '[ b ::: . 010 

Decatur, I 1.1. 571 51 2 8 05 Gl. 9,b 

Sp ringfield, Ill. 71, 864 8?6 61. 0 

Danville, Ill. 36,7b3 870 60 . 9.~ 

Jacksonville , Ill. 17, 74? 853 59 . ?3 b 

9811 
~I . 0 . W. Pearson 

NRA HeadqUart er s 

45 :Broadway 

New York City 

Dear Mr. Pearson: 

- 429-

CODE AUTHO ... ITY 

LADIES 1 H.Al~D:BAG nm STRY 

347 FIFTH AVJ;NU:: 

NEi7 YORK 

l·ay 13 , 1933. 

We ar e enclosing a copy of the latest communication r e ce ived 

by t h e Administr e.t i on f r om the i~eeker Company, Jo:;> l in , Lissour1 , a 

copy oi which t hey or~a Qed to us. 

We ar e a ls o encl osing a co_w of tne accompanying l etter writt en by i.Ir . Locke , a copy of t he per sonal l etter Tir itten by ·.!r. i:ittenthal to his personal friend Ur. C. r.:eeke r on Febr uary 28 , 1934 before 

ou r cod e wa s a:_pprov ed , and a CO) Y of our r epl y g iving the f a cts r efu -

ing the statements made by the i>1eeker Company. 

We trust you will approv e of the r easons we hav e g iven in 

our rep ly to the sta t emen t s made by the ~reeke r Company . 

9 811 

Very trul y yours, 

CODE AUTHORI TY 

LADIES 1 HA1'IDBAG I NDUSTRY 

),. .1i t ten thal 

Code Director 
-430-

~Aay 21, 1935 

Mr. A. Mittenthal 

Code Director, Code Authority 

Ladies I Handbag Industry 

347 Fifth Avenue 

New York, N. Y. 

Dear Ivlr. Mittenthal: 

Under s eparate cov er we are mailing to you a copy of our letter of May 20 to l.!r. Meeker, president of the iieeker Com:_Jany of Joplin, 

Missouri. 

This will inform you of our decision regarding this matter 

and will also s erve as a cknowledgment of your letter of May 16, in which 

you advis ed us that his. pe tition was disapprov ed by the Code Authority 

in a vote by mail. 

We are most ap:preciative of the large amount of time and care 

you have given to the considera tion of this case. 

'v er·y truly yours, 

. ' 

Owen A. Locke 

Assistant .Deput:r Administrator 

Textile Division 

CC: Mr. 0. W. Pearson, Administration !1iember •' . 

Mr. Owen A. Locke 

CODE AUTHORITY 

LADIES 1 HJiNDBAG I NDUsrrRY 

347 FIFTH AVE1~E 

NEW YORK May 16, 1935 

Assistant Deputy Administrator · 

Commerce Building 

Washington, D. c. 

Dear Mr. Locke: 

The Code Authority , by mail vote, has denied the petition of 

the ivi eeker Company , Joplin , i.i: i ssouri, for oe rmission to engage learners 

at l ess than the minimum Code wage s. The r equest wa s denied for the 

r easons given in our answers to the i.ieeker Company's p etitions. 

9811 

Very truly yours, 

CODE AUTHORITY 

LADIES 1 H.A.i.~DJ3AG EJDUSTRY 

/S/ A. l!Ii ttenthal 

A. I.Ii ttenthal 

Code Director 
Mr. A. If! ittenthal 

Code Director 

- 431-

· 'ay 15 , 1935 

Code Authority Ladies ' Handbag Industry 

347 Fifth Avenue 

New York, New Yor k 

Dear Mr. ·.I ittentha l: 

rt.e : The cer Company, 

Joplin, I issouri 

We have your l e t te r of Fay 13 on the above subj e ct a nd we 

ar e most appreciative of the t rouble you have taken to ans\7er t he 

various p oints r a ised by i.ir. i:ieeker. We a r e :9a r ticul arl y gl ad to 

have the comparis on of wages p c.id b-J t he f a ctori e s in -en York Ci y 

and those paid by the Me <3ker Com-pany. 

We would like to g ive this information and the other l a t est 

information that you have given us, a s well as your pr ev ious tt , 

thorough study and consideration. We hav e a s 1ced i." r • . eeker f or certain additional info r mation and will tr;;r to r each e. decisi on as soon 

as possible a£ter '.le have received his r e9l y . 

9811 

Ver y t ruly yours, 

OTien A. Locke 

Assistant De.t?UtJ Adm · nis n .tor 

Textile Divisi on 
-432-

CODE At,TTHORITY 

LADIES HANDBAG LIDUST?.Y 

34:7 ? ifth .Ave. 

£ EW YO:rtK 

:,:ay 13, 1935 

Mr. Owen A. Locke 

Assistant Deputy Administrator 

Commerce Bldg. 

Washington, D. c. ;,.. .... 

Dear Mr. Locke: 

We are in receipt of your letter of May 7 regarding the case of 

the l'!leeker Company, Jo:plin, Missouri. VV e notr-;; the additional 

reasons they give to entitle them to an exem tion from the wage 

rates of the Ladies' Handbag Code. \7e sha ll try to answer their 

argu.11ents and give adci.i tionul f a cts in su ort of our answer to 

the arguments g iv en in their :9revious letter ..... 

rtvti th further ref erence to yours of April 13, I am enclosing herewith, 

as you have requested, balance sheet f or the years 1933 and 1934. These 

balance sheets are t alc en out of our ·.9ubl ic accm.1ntant 1 s annual report on 

our business. These accountants are .:Baird-Kurtz & Dobson, Joplin fJational Bank Building , Joplin, Missouri. We can furnish you further information if such is necessary , or you can if you wish co;,lJTiunicate direct 

with t hese accountants." 

9811 

We accept · as correct the statistics furnished .by the United States 

Bureau of Labor . as to t ne r~l tive cost .of iivi ng bet\7een Joplin, 

Missouri and New York ·City as being 63:o3 le same as it is in 

Hannibal, Missouri, a city mentioned specifically in . this report. 

We have prepared a chart· which will sho\7 the wages paid per hour 

in handbag factories located in 1Jew York City . In order not to 

disclose the names of t he factories, we have nlli11bered them from 1 

to 5. We have also prepared a similar chart showing the wages paid 

to workers per, hour i n the factory ·of the i':l ee-:er Company. These 

figur es are taken £rom the payroll records submitted by the resp ective manufactur ers and examined as to their accuracy by our invest i gators. In paring t he se figures, we have taken the same 

month of t4e year f or all factories, November 1934. The New York 

factories, frora whose payrolls these figures were taken, manufacture handbags conparable in style, quality and price with those 

manufactured by the Meeker Company. 

It is interesting to note that while the cost of living in Joplin, 

Missouri is 63.03% of \Vha t it is in Neu York, the '.-,ages paid by 

the Meeker Com any m·e about 30% of the wages paid to the workers 

in New York . It is evid.en t tna t the i:leeker Compcny has already 

anticipated t he differenc e in living costs between Joplin, IAissouri 

and ! ew York City . 
The union scale of minimum wages for fi r st clasr cuttL.rs, o 1en.tors, 

p ocke toook- mt.lke rs, frame r s , nd. )arers , •rhicl co;n )rist: tl E' .~. iv~.; roa.-

jor classif ications o:f operations on llc...nJ:oa , is$ 7 . 51 for 3? :, 

hours of 1.v ork _.;>er '7ee~ , or a t t.o.1e r<1te of .p l. 00 .._:> er nour in :~e\7

Yor!c . Ther e E..Ue m::.t..'1y \7 or'-ers wuo rectJive co nsiC.er bl r more bec<J.use 

of t h e ir ski ll or l enGth of service . 

The r a te for secono. clF.ss workers is $33 . 60 for 37 ;. hours of ·1ork 

uer week , or bm ~ t < 0¢ per hour. The Uni on t s sca.l e of minimu.m wages 

for tel per s is $23 ~8 f or 37} hours of ork J er week or about 65¢ 

~e r hou r. We un<ierst and that a great dea l of the '7ork in the factory of the !fie d eer Company is ;>erformed .on <1 _ p i e c e u ork basis, and 

. that ti.1e p i e c e -:;v ork r a te is based on the tlinimUB w~e of 35¢ per 

~1 our. This fact is borne out b:r the yayroll r ecorG. of the · ·eeker 

Compa...>J.y , whi ci.1 sho;..r ~ tl at 148 out of 213 ':'rorkers e· ned the minimum code wage of 35i; an hour. .~.he p i ece '.-:ork r Dte under Union a.gr e-

·ment in New York f a ctories i s $1.11 an hour . 

The ·balance sheet of t he i:Ieeker Comp e ny does not .r_; ive all the information nece ssa r y for ru1 anal ysi s of t~e op erations of their business. 

We ca nnot C.eter mine the i terns included L1 lab or costs dir ect and indirect, neithe r d.o vre have a se_9aration of the va rious brE.J'lches of 

their business, p arts of ~hich are included under ~nether code . 

Without their _perat i.~ figures , we cannot expr ess an opi nion as o 

the reason for their having incurr ed a loss in their ·uusi ness for 

the year 1934 . The loss may have r esulted from the ~e at ion s of 

some o tl er branc ... of tllei1· busii.1ess. Ue might say , however , in general, that losses throughout the handbag industry rer e no t unusual 

for the year 1934. 

III am a lso enclosing v7hat I think is the informat ion asked for in the 

second paragra-:_Jh o"Z your letter. You will not e we sh0\7 for February and 

l1arch a big shrinlcage in the nunber of peo_9le employed :--nd \1 en consideration is g iven to the f act t hat all employees f or the months r eported, 

a.l though mc..ny of them working onl :r part t i me as ti.1e total hours "17ill snov1 

<md a smaller amou..YJ.t of {-;oods manufactur ed, you can r eaciily see ho our 

business has deteriora t ed. A:9ril vvould shO''' as bad or :ve rse conditions 

than March. t1 

9811 

The chart submitt ed by the Meeker Comuany shons tn~t for the first 

three months of oper ation in 1933 w· ·1en the. code was effective , 

against the first three ·months 01 1934 pr ev ious to he code, th r e 

wa s a decline of 36~ in the numb er of hours l.'o r ked and only a decline of 24~ in the value of the p roduct produced , \lhich is Jroof 

that they op era t ed more efficiently in 1935 , and even ho h they had 

to yay the incr ease i n the minimum '-:-D..ges , thoy )roduc ed c... g r e<. ter 

volmne of s c... les fr ora the hours :70r1ced. 

It is true that the dollar volume of sales during he mon h of i.'arc , 

1935 shows a decided decrea se , but .l c c:1tire industry had a very 

p oor spring sea son i n 1935 and , (4s <. co. s e uuence , losses averaged 

from 33-1/3% to 50jb in s a l es v olume Jere y_uite ~ene l. The 'eeker 

Compa ny show a lo ss in sa,les volUI!le for th r~ i i rst three mon hs of 

1935 of 24.3%. 
-434-

tTMr. Cleveland A. Newton has just written me relative to the interview 

that he, in comp.:my with Congressman Dewey Short, had with you recently, 

and has advised that the J:Jt;~w York crowd insists -r1e are ma1dng money hond 

over fist. These New York fellows know our position, but as I previously advised, it is my opinion, based on experience, that they do not care 

anything about our position in this industry. It is my honest opinion 

that they feel that the handbag manufacturing business is an eastern 

business. I might be wrong in some 9f my conclusions reg~ding these 

fellows in the east, but I doni t thin..~ so. II 

This is only an unsupported e~pression of opinion. 

trin a bulletin put out by the Code Authority dated l!Iarch ·21, they list 

91 cases pending for non-compliance with the Code. I Tionder if you fellows in Washington know the details of these non-compliance cases. Of 

course, I do not, but it wouldn't surprise me if many of them were not 

in the same class as that of the Virginia Art Studio of Lynchburg, Virginia, who apparently have never complied 1,1 i th the minimum wage, and 

this concern in Lynchburg is perfectly justified in my opinion is not 

complying. It is reported I think t hat the Virginia Art Studios are 

doing a big business. They may be, but at this time of the year they 

manufacture a particular ty-pe of bag that for,:Is a big part of their 

year 1 s business, and if it looks li~ e they are doing a big business in 

recent months it isn't because they are taking advantage of the lower 

wages they are paying, but on account of the seasonal bags they are making." 

The 91 cases of non-compliance pending cover_ all kinds of cases of 

non-compliance under the code. Surely, the l>ieeker Company does not 

intend to justify their right to an exemption to the code for the 

reason that others hava not complie_d with code provisions. The 

facts in the case of the Virginia .Art Goods Studios are well known 

to the Administration. No exemption has ever been granted to the 

Virginia Art Goods Studios by the Code Authority of the Ladies' 

Handbag Industry. 

11When the Code v;ren t in to effect we asked for exceptions to the .ninimum 

wage, filing our brief in due form and going before one of the Darrow 

Commit tee in Kansas City, a i;lr. Mann , explaining OUl' posit ion and Hhile 

waiting for a decision He had in effect a minimum o£ 30¢ per hour for 

for some of our h~lp. Yet the Code Authority, when they got ready to 

issue labels, would not ship us l abels until we had paid baQk about 

$800. that they termeQ back wages to bring the minimum up to $14.00, or 

35¢ an hour. And now I find that the Virginia Art Studios have labels 

on their product, yet have not been compelled by the Code Authority to 

pay the Code minimum, and there may be others among the 91 non-compliance cases operating as this concern is. 

11All of this may not be of interest to you in the situation, yet I think 

it does show that we haven't been treated fair under the Code. I am 

not complaining against the. Lynchburg, Virginia concern; ~heir position 

is somewhat similar to ours, and they should not be made to come under 

the Code on the same basis as the New York and that particular vicinity, 

whe re nearly all of the manufacturers are located, with their market for 

raw material and everything that goes into handbags except labor, right 

at their door.n 

9811 
-435-

The rep ort by tl e :Jc:.rrow Board, ·1e believe , ,ras m·.de up of just 

such heerings referred by the 1v'ieeker Compan; , and is p roba':>ly 

the reason why - the . rep or t of t "' Darrm7 3 oa d. clid not meet he 

approval of the AQministration . 

The easo~1 for the pay:·,1ent of restitution oi 

iieeker CoiJpany '.vas oec2use they violated the 

. by paying l es;s t han t he minir.1um code .7agcs. 

$800 . by the 

l abor p· ovisions 

~is r est itution 

· ·;e_s ' paid to every \'' Or~ce r ent~ J.ed to r eceive it. . 

11 In considering our case , I i7 ish yo~ , .. ould again r efer to our brief 

l eft with you. These 1 en Yor~c fello s cla.i Ja : eat success 1 or the 

Co<ie yet they · a ve 91 case s oi non~cc :n,~ liun e out of 3')? .nanafG.cturers 

that they cl e.i m are in the ind. s~ry, and duiing the lJ8u t .~.ew wee!cs they 

have a llowed the eastern- manu.lc.,ctufC'l's ~ C..u:ni3 ;nc d\ena.is e on the m.:rket at p r ice s it coul d. not be p roduc.ed for until tl e ~aste r market nas 

virtually demoral i zed . \fnen I '.'-a£. :Sa s t r ece:1. t l J tne :i ew Yor papers 

\?ere full of specia l s ale s on f i ne .nrndbags a t r ici. i cul ousl y low prices, 

yet every :yroducer of t~ e s e bag s :as u...1der the Code , that the Ne\7 Yorlc 

crowd. cl aii:Js is such e. g r and succqss. 11 • 

. The AQrni nistFa tion loep not .allGW :J.S :L ~ ':r.:n:i'c~s . .:...: e· C§nL19t 

=~~ Oll.trol t l'le -·h ol c~::t ~ :g t~es, .. :nd. r-t i]ll~{ not tn r e t ail · Jr~ces 

·. · '\t \.:hich bags may 'be sold. 

liThe Code ~1as '7or:ced nothing but a nc.rdshi p on us. As I rJr eviously 

a·vised, in our v:i,cinit;r, there a1~e shoe m<Jllufecturer s , s· irt manufr>cturers, cigar manufacturers and ot.hers, none of '~h om hav e the high rnnJ.-

mum r.rage that \.' e have, . and all of them have a period in :thich they can 

rk ab s ol utel y gr een e~] oy ees for a c ertain l eng th of time until they 

get fe.mi l i ar ',7 i th their or~c at l ess tha n the mill.imum; · ~ of the minimum in most cas e s , I think. One t;a r ·.lent 11e:.nufpcturer rho employs about 

one hundr ed peop l e ~1.e e in our to"'m are able t o '.ror.c tne ir ne•;- people 

whom they a r e yin~ to teach the 'J. Si~ess a t 50 o of tneir 00 minimum f or s ever a l \?eelcs. Sh oe conce r ;.1s a t BO,J of the minimum for six eeks 

anG. they have a mininum for femal e l abor of 301 .?er hour . Cigar manufacturers her e , and there a re t':'IO of the:n , I l.Aild cr stend from very reliable 

authori t y , pai d littl e or no attention to t e Cocie minimUln . 

uso a ll in a ll I :.q1o -: tha t no considera tion has been .:- i ven to our isol ated p osit:i., on i n this indu stry . n 

e believe this is a criticism of the it.,'~. and not the Code .d.Uthori ty of the L&dies 1 Handbag I nd s try . 11 d.dJ lr 10'. at shoe 

manufac t ·u.rer s are a n excellent source fron "'lhich .~~ e rienceC: 

.. orkers may .be pro cured to ·do 'Yorlc on h3.ndbags. Sho e cutters, 

s t itchers and par ers are genera lly considered more skillful 

h~n 'l'Ork:e rs p e r f orming the s ame :pe tions in a handbag factory , a nd t he s e com::_::>r i se three of tlJ.e Jn jor operations in t11e 

making of a h <.:.ndbag . . e a r e inforr.1ed. t.1Gl e a r e soMe shoe ac9811 
-436-

tories in Jop lin, Missouri and in Ca rthag'e, Missour·i, ':<hich 

is only a short d.isknce from Joplin, the~T should. f,rrnish an 

additional labor mark et for the i.ieeicer Company fro111 which to 

procure er p eri8nced orkers. 

11 1 am enclosing you a lette_· th . will at lec,st en+ighten you as to 

the New York crO':'!d' s attitude toward us 1.'7hen the Codo wo.s being formed. 

This letter from Mr. Mittenthal I will a sk you to return. I don't like 

to go on recor~ a s being const antly complaining aga inst these fellows, 

but I have a bus.ine-5s herG to nf'c:i'lnta in; not a rented loft like most of 

these f ellows, but a big inve stment, as you will note from my bale.nce 

sheets. A building and equipr.1::mt which we own. On account of this it 

is r a ther hard to arrive at a deci-sion to pass out of any manufacturing 

lirie; leaving buildings and equipwent idle and throwing people out of 

work, many of whom have virtually beeri. 'r a ised up in this business, a 

business I have been more than ent -f~ve ye ~·rs in developing and devoting my energ-Y' to. n 

The lette r written by i,fr. 1-:Uttentha l, a coyy of ,;hich '.7 as sent 

to the Administra tion,. \7as a p ersonal letter written to a personal friend, Mr. C. Me eker, ·while Mr. iVI ittenth.J.l was a member 

of the handbag industry a cting · as Chairman of the Board of Gov•· 

er nors of the Associated Handbag Industries of .America, Inc., 

and ~:hile he was Chairman of the Code Committee appointed by 

the Associated ' Hcilldba.g Industries of America, Inc. to draft a 

code for the industry. The Ladies' Handbag Code was not . approved 

until lviarch 14 , 19.34 and. beca:ne effec·t :iv·e Uarch· 26, · 1934, . so 

that l

1

1ir. ivii ttenthal' s lett er was not written to the Meeker Comp any in an. official capacity a s Code Director.' The opinion exp ressed by Mr. · lviitt entha l was a personal one, rrhich he held as 

a n individue.l manufacturer a t a time when it see1ned impossible 

to obt a in a code satisfa ctory to all members of the industry. 

The dispute involved wa s whether cla ssification ru!d wage scales 

above the minimum shou l c.i b e included in thB code. The Ne'.v York 

m::mu..fa c'turers 'Vho wer e in contra ctual r e lations '.7ith the Union 

insist ed tha t they should be included, '7hile ma.nufac.turers with 

f a cto'ri e s outside of Nm·., York Ci t;>r insisted. that they should not 

b e included. n the fina l code was o.:pproved, no classification ond no e sca les a bove the minimum were included. Provisions wer e made in Sections 2 ·and 6 of Article IV, but they 

were stayed by an Administra tiv e Order approving the Code, and 

still r emain stayed. 

We are at a loss to understa nd why the I.eeker Company should 

use a p ersonal letter sent to Hr. c. l;leeker to support their 

cla im for an ~.;: em tion to the code 14 months later. 

11 0n our ba l a nce sheet under assets you will note listed s a lesmen's accounts ove rdra :iln. This r e fl e cts t h e ea rnest effort we have made to 

keep ou r busine ss goine since t h e depression set in, in advancing salesme n ·money to ke ep thea going , thereby keeping our f a ctory going and keeping our peop l e employed; moneJr we have pected to recover from the 

s a lesmen 'Then our business again g ot ba ck on better basis.u 

9811 
- 437-

The iteD 11 salesme n 1 s accounts•• .. :ef~ rr ad to in their b, lc... ce 

sheet could be sl o'·m on almost e ~· tri::.l o;:-1 ...... : C"' sD"'et n 

the industry . Only ~e finQ ot. er m~nufacturcrs 9roperly 

cha ge such items to pro.1.~it and loss at tl e end o · the yec.r . 

S:he i,feel er Co!npany con~inue to co.rry it .:1s 3.n 1.s e from 

yea r to Y.e c. r . I t is our ex:p,;r i ence tl at t· is i tc. n 1 s seldom ever r eal ized. . UnQer p r esent ~..;opdit.i.ons ri wice as 

1-;1any .. factori e s strivL1g for· one...:.hn l f of tl e nor .. . a l volume of 

ousiness, it is the rule r ather t1an the exception to find 

that four out o.f five traveling s a J.es:nen selling "!< ndbe;s do 

not e.:;.rn their a.G.vanced draHing cou~1ts . 7'e fr. il to see 

whe r e this situation c<:.n ~e at:tJ:"ibuted to c.ny feult of the 

Ni\A , the Code Aut hority ., or t he otL er oeu1bers of indu~ try . 

-; 8 t.ruBt -.~.~ ~ \'.ill i'!1S' ': .· l'-.llj t~ cl.lr1.. <' ~: .. ··• ., l' 

CumpcJn.f in SU:9:J:Ort of their _ eq .e:::> r, .t o1· c:.~.n e ..... b~1~Jt 1or.. . 

\

7 or y tr .1ly yo .1r s , 

co E AUTl:O. :::rY 

LA.DIZS'1 1-'uiN.J:::, G r:-.UUS .d.Y 

A . 11:i t tc atb::.l ----~ ---------- ' ,;.:t ieDt!.al 

C0u.e :Ui ·· c,c tor 

J..~ .. J. :AS 

-- .. . -... . ·· . 

9811 
Fii.i.M 

NO. 

1. 

2. 

3 . 

!:5 . 

- 438-

COlviPAB.ISQTT OF WAGES PAID BEFiVEEJ.~ FACTORIES LOCATED 

EJ 1mr YORK CITY, fuiD :,r~_KER cm!P_t.JJY OF JOPLin, 1n ssou.~.1 r, 

:B'OR TSE 1. O!·!TH OF NOVEiJ[9:GR 19 34 

P"''..YROLL 

Dl.Jrtll G 

ct 

1 

2 

3 

4 

5 

1 

2 

3 

4 

5 

l 

2 

3 

4 

5 

l 

2 

3 

4 

5 

l 

2 

3 

4 

:;_;ro. OF 

:SMPLOY~3S 

Ji10R ~·:EEI-: 

54 

55 

52 

51 

58 

63 

6::<; 

6'7 

..... 

64" 

64 

29 _ _: 

28 

30 

28 

27 

66 

65 

68 

67 

59 

so 

50 

51 

50 

'J O. OF 

HOURS 

~JORKED 

FOR WEEK 

2 ,005 

2 ,035 

1,968 

1' 9·±5 

2 ,04 7 

2 , 31 2 

2 ,697 

2 , 503 

2 ,516 

2 , 528 

l,Ob7 

1,080 

1,139 

1,111 

1,070 

2, 36 :2 

2 , 411 

2 , 59 7 

2 ,438 

1,836 

2 ,421 

1, 886 

2 ,358 

1,9o4 

A7ERAGE 

E).J:ti'JED PK-1 

\iOR.JC..-=t :BASED 

~'J 40- HOUR 

\lEEK 

$35.50 

37 .70 

37.50 

37. 50 

35 . 20 

28 . 80 

28 . 60 

29.00 

29.25 

29.00 

30. 80 

31. 20 

31. 40 

:_n . 30 

31.70 

31. 20 

32. 30 

31. 30 

32. 60 

35.10 

37 .90 

37 . 90 

37 . 50 

09 . 80 

MEEKER COl,;? ANY 

A. ER<\.GE RATE 

PR:ii HOUR 

PE....'t WO:rtKSR 

88}~ 

944¢ 

93-~@ 4 . 

93%¢ 

88¢ 

761;¢ 

78~ 

78 ~¢ 

78-i¢ 

79-~rf, 

94-'l¢ 

94-±¢ 

94~¢ 1 

99 3¢ 

l 209 7,868 16. 50 4 l i¢ 

2 20 8 7,494 1 6 .10 404¢ 

3 1 88 6,927 16. 30 40%¢ 

4 152 5, 246 16. '70 41%¢ 

*P1eo..se note thz.t there \-.re r e five :pa~rro1l we ek s e::: e:~t No. 5 and 

vlGeKe r Co. \7hich only hc;..d f our beca.use differ ent f.aq_t 0ri.es nay 

th~i r emn 1oye~ s on diff nt days of the e~ . 

9811 
3CHZDUL~ 0 3' P 3,_:1 S 0 2 HO-:;:::~s AN"J ~r_· :;:,- 7

::.:':3 OF - .J.OJ- :'IO:J :'OR 

FIRS1' Q,UK :TM. :? l 3: .:\S CCC?B~-~J ·:IT:'i ':'"ii:: i:sr Q,r'"'".r::_ o~, 1'.7~ '1 

JANTJA.RY 

::: ·=s:trc_-8 Y 

i~JLrtCrt 

9811 

Eo-.,.::,-· o:c z~ v .i.lu:::. ~-, PRO DU C·.I' I 0 !~ 

li.1 J.' oe 

Decrea s e 

De crease 

24-'- i .,,J I n .reese 5,...,_ / 

( - J 

LL~

~<-r"'=:J :Jc:c ~~ e~-.::;" 3:~ 

- . ' ·.) l-t:~, , Decrea se 57~!) ~ 

l!,Ol\ ~r -& ELl OF TI.l_i!; TC::_-0: 

( J.tufL'.AB.I , t'Zel"dUAri.Y & ·.t\RC:i ) 

rorke Q. :J! :; .. : ~ s-: 24:;) in v a1 ue 

'Jroduc tion. 
9811 

- 440-

E X ~ I B I T X -------

Code Autlwri ty Comp1iE'..nce Director's 

.rt. e::~o rt on HL'.verh il1, liG'.ss. 
ir. 0 . ·J. Pea rson 

. R. A. 

5 Bo c.r dw<:'.y-

.6ev;r Yor k , •Je-<:J Yc rk 

De ...... r l.ir. PeP.rson :-

- A_ l -

X 

"'C :J:: A-_;r-: ::,:::-:1 .1. ... 

L'. :::~.:.i ' _J:...-JJ:__:.} r.·:ry.;.sr:KI 

3\)3 ., .L:rcr -- _4.. .'"~ G-z 

"'3·.: 1 ?~{ 

A:)ril l6t. , 1934 . 

I em enclosi .g en i t} CO"SJY of t1.1e lette r ~rom -::.::.ver:_ill , 

.:o.s:: c..cLuse t ts, rel <:'.tir: '· t o ~1o.-:1c work; <'-SO :r. Ber~:owitz s 

r e:)o r t." 

Yo, wi ll see fr om t12 csc t !1.::-. t ::r. "'"'e rkoilitz •-<'.S m:.c.:.e D. 

close i nve stit,;[.ti on of "t:le Dc:-.tte r [. _d I bel_ieve :1.'.S i zen 

t-1e ne c ess:-.r y s te1)s tc r e. ec~y e_i > situ." t i on . 

Iour~ very t~~~y , 

(Simed) " ..... . 

Code Director 

"dies' --,:,do~ .,: ::nd tstr' 

A. ·:i tten t hal /TD 

9811 
Cocle Au t :w ri ty 

Gentlemen:-

-442-

CODE .AUT!:GRITY 

LADIES' ~ .. ANDBAG DJDUSTRY 

303 FIFT::: AVENUZ 

UE.i YC;.UK 

April 16th, 1934. 

I :1r.ve mC'.cle r.n investigo..ti c· n wi t:1 ref erence t o the mC'.Jlufr.cturing of 

wo v en ler..tl1er ~18Ild r,gs in t he ;.rr-werhill, Uass. district. 

1

1':1i s Industry c onsi st s of 12 mnnufr.cturers w:1o em) loy E'.bout 2,000 

~') eo"Dl e. 90 ~ of t h i s work is done in t:1e homes of women o.ncl children. 

io.f i s done in ~1e f r..ctories. Tl1e work clone in t:J..e f o.ctories consists of t :1e cu ttint; C'.nd only m0.le 1.:'.-b or is used in tl is operation. 

Ti.1 e first ;nnnufc..c turer stnrted in .::'.bout 4 yer..rs c.;;o. ~1e remainder 

r.r e r.ll new firms t:.ncl t h ey c..re <'-1 1 loc<:'-tecl i n the cities of ~;:E'..ver lill, 

I p swich, Lynn and Yr . L~rnn. The ir ~J rocluct is sold t c j obbers and in 

n. few inst r.nce s , these jobbers con trol <:'- 1 <:'-r ge percent2.ge of their 

out :cJut. These jobb e rs c..r e continur,J l y tryinb t o breE'.k down tl1e price· 

of the b C'1.g so t hc:.t t he l n.bo r costs do not net t h e v.ro rkers E'.. living 

Wf'1.ge . 

I hc:.ve investign.ted 2. number of f.-:,_c t ori es 211cl c:1eck ed ;p tl1eir lJl:wroll s . Ti.1e vv orkers in t:1e fr.c t 'J ri cs receive t l1e minirrrum wnge . 'The 

l1ome wo rkers wo r k on 0. ~J i ece work bo.si s; ~1e po..y is very low n.nc1 it 

is impo ssible t o determi ne the nu...-·nber of hours they work. Tb .. is work 

is clone by £'-11 t l1e ;-ne.mb ers of ~~e IC'jnily. 

I inte:.cvi ewec~ I.ir. Georce :r. Croston, Secre t n ry of 1J. :1. A. Co r;!._Jl i "nee 

Board , =:n.verllill, I&-.ss. , Md h ac.l r. conference with him with reference 

t o t:1i s mc>.tte r. 1;:e t ol d me it wc..s i mc) s sible f or h i m to co-oe with • ~ .J. 

t :1e si tuE'.ti on . T.:1e locP..l t':ut:1o ri ti es o..re :1 el ~J less on <'.ccount of 

pressure b r ou t;:,1 t by . the cliff e ren t l1urc~1es c:-.nd c:1ari t r.bl e insti tutian s, 

lc:.imL.1 ~~ "tc~c.t it woulcl ~ .. el ) r.. gr ec..t d.er·.l tow.::-.rd welfa re work. 

I ::w.1 c:-. on eJ.~en ce v-vi t:1 Lir. George PicE'.rd, Sul:> ervisor of Attendance 

r. t ~. i ttier Sc::w ol, ~1P.. ~1 ll , li!r.ss . I questi .m ed him wi t :1 referen ce 

t o tl1e r.tt endcmce of t:1e s e cl1 il dren in sc~1oo ; how t h ey grow u p vli ~1 

ot~1er .A.111ericc..n ch ildren nnO. t l1 e c:1il d.ren fro::n different ~Jart s of t he 

city . ~e tol d me ~12.t t :te cl1ilclren <:'.re r a t l1er bri&1t E>.nu well 

nourish ed. :t:owever, he i s i n f c..vor of 2..bolis~1 in G t::..is wo rk r.t :1ome. 

is opini on is t:lC'.t it l1as creE'. t ed a concli ti'Jn beyond ~1 e control of 

t:1e locC'1J.. 0.ut l1ori ties . 

I r..l so i n t e rviewed l1ir. Edwr.r cl J. I:Ieehr.n, of the Le.bor De,Jt. of 520 Bc:.y 

St:'.t e B1i lchnG , LP..wrence, l.i2.ss. =~ e is en tirely hel ~} es s in enforcing 

C':ny requlr.ti on s Hi t l1 r eference t o l1omewo rk. T!.1 e Str.t e of I:iP..S SE'..c:1usetts does not )ermi t MY inspector t o e;o in enycne ' s l1ome without c:. 

WG.rro.n t. ::e C<'.11 only reg,ult'.te l 2.bor l t'..v;s 2.s f2.r r.s f£'..ctories <:'.re concerned. 

9811 
In view of t L'le condi ti cns, I i~tervieHed u1 ss onnolly of t:.e Greel~ 

s>t . J ·'l!!es C'. ~1ol ic SchooJ. , il:~ere 'le :-.U".j : ri ty of t 1"'-e cl ilcren 

c>.ttend . She he.s c.ssured me c. t t~1e cl i l _en .:'ro vwll 1 cu·cis:led 

c>.nd t C'ken c['.re of .:'.lld not ove1~ worke\. . Of course t:1i s c: urc: .. is 

SU) lJorterl most ly by t:1e workers L t:. e v i cinity v1>.o \'Wrl: on t:.ese 

bag s 1 e.ncl.. t: ~e efo e ~1e r n W.'l,S bi "'. ed . . s:~e Lc-rced if "'nything 

coulcl be d. ne to :1c>.ve ~ ese onc:;s mc.de ~ ~1e f.:'.c t orie , con _i tions 

would be more sc-~ti8fC'.cto!'y . I vi sitec. 2llorr.es \7:1ere t: ese '.:'6S .:'re 

mc.de . .:. one of ~!et:l ::.; .ve l e' s t.1c ~_reo c:.il :re;: 2....'1rl_ t- .e 11C..j nri ty 

betvveen eig.1t C'.ru:l nine . i.iost of t: e c:.lld.ren c

1.o t llis v1-: r- c.fter 

8C:lo ·:Jl l1 ur . Sone of t :1e l10me8 r.r..:~ i n;- very )iti f"l.l ccnc.iti n , 

C?.ncl t:li s mc:i1ey e2.rned b; t:1.e c:lildren i ~ usee n t S':l mucL fc!' t. e 

8UlJ~Jo rt , but mo r e for l ittle l u.xuri e s f or t:.!.e olcler l~ il .ren of t!:e 

fomily • . T:1e m.:ljo rity OJ. t:u3s e ~le ~Jle C?.re of t: e C-re k ort.'.cJox Ic'ith , 

c.nd L2eir mo r P.l 8 <'.re v ery ~li[:l i n view of t:1e I"'_c t t: ~c:... t t "1e p"'re:. ts 

su2_1ervise t :1eir c:1ilrlren v ery Cl'.refu.lly . T:1ey "'.re .. 'l."'.rried between t: e 

E'..g;e8 ..:f sixteen <'.nd eiE:;~l teen yec:.r s . The en tire cc.lony is r. r e"Ql ic.., 

of <'. 81TIE'.ll comr.mni t y from Greece in to tl:e l ni t ed St ..... t e s. 

After int e rviewing eP.c:1 c.ncl ev e r y OD1e r of t!. ese fo.ctor ies, I celled 

<'. meetinr~· vi.1ich wc.s hel d E't · e1e St. ·uc: olcs ~~c el. An As>oci<'.Uon 

W<'..s formed under ~1e nene of ~ic:u r~ ll B<'.g .:c..nuf .cture rs. They c.creed 

t o im ~cli c-. tely 8y8t e:x.tize t he ir busi ness ::md :!.EWe t'1e s['J"'le women do 

t::e work in tl1e f l'.ctori es. 

I l1cwe formul a ted :;,:>1['..11 8 w!1ereby t:1ey could i ncre·.se ~:et r ) r oduc tion 

E'.nd n o t de_:;rive o.nyone of .?.. livel il'lo.:.>d ; in f.-...ct incre"'.se ..,_ grc"..t de"l 

of th e er.rn ings of t"1le p eo]le without ...... ddi tionl'.l burdens t o t hemselv es. 

T~1ey l1o.ve ['.r;reed_ to COCller r.te t c t he full ext en t r1i t h t:.e Code Aut'rJ.-

orJ.. ty, c.>nd prm.1i8ed t o live U) t o tl1e letter f t:1e law . 

It is ny o)inion thC'.t s ome t:;o ocl constructi ·e worl: h"' .. been <'.c o:~nlishecl. 

r.nd ~lC'.. . l omevmr k will be entirely el i min". ted by t:1ese . c.nuf:-.c turers. 

I ex··Ject to mcl: e ,.,_not:1er visit t o see if tl e cl1<'..nges t.l~.t v1e c ')ro 1ised .1.. 

:1D.cl been put i n to eff e ct. 

( SiQ1 eC1 ) "kx Bcr ~o wi t z 

TD 

9811 
- 444-

l1larch 4 t :'::l , 19 35 • 

I1c>.v e rhill , Uc..s s. 

To tl: e r. R. A. L:tbor Del;t. 

De<'.r Sir:-

, 

I nc -~ w ~ow t o st a rt s l ett er but f irs t of ll I 1 3 e swee t-

;:,r!Up v10 rk e r but n one s t r o..c;ic c.:.s ti1i s . So pl e 2.s e listen and _lel p t.h e 

c:1i l clr en of I.~c: 1i . Fo r you c.:.re t he onl y cmes t hG>. t co.n d.o it. I 

s c.y s i s [', t r£'.c i c le t ter. Yes tr:J.[_;i c . I do no t k n ow w~lG'. t your 

i de E'. of t r .J.gic i s but I d o think tl'la t t lle mo st trl'..g ic t h i ng t o d o is 

f or f c.t :i.1e r s t o t;o out e..nd enjoy t:1ems elves , n o t wo rk mind you, Yvh ile 

J. ir ci1 ild ren work <'.nd swe<.t till 2.f t e r mi d.ni t;h t. Tha t 1 s whe.t the 

f t:'.. t l1ers of :1£'.v e r h tll clo , es~) ec ic.:. lY t h e best of c. . They f orce 

~l eir J. it t l e ~lil ren f r om t.ue c.t;e of 9 t o 1 2 t o VJO rk f r om 6 0 I ClOCk 

in 1e morni nG til l aft er midn i t;h t. An d. on Y/~l t. Tho s e h andweaved 

c.~; s, t :1.:--. t is tLe spec i a lty , of 11r.v e r:1 il l . Th ey c.re v1e2.Ved c>.ll the wc:.y 

t :'lr ou C.l. T:1ey m.o:>J.<:e ~o t i n t h e sl.wps i n ;_~a ill, ·bu t i nst ead i n t:1e 

h ouse s . Al l e c:1i l d r en wor>: . try int; t o m2k e t l1o se b aGS till 

l o r 2 rli t er mid.ni gi1t . Then t:1e next dr.y t l:i ey do to scho ol ['..11 in, 

u nC'.bl e t c d ::; ir le s sons. T.::. e t e2.chers c·om})l a i n a ll t h e time. 

L::.t ely we bo t won't tJ.1 r.t :- e N. R. A. wi ll n c: t all ow t :1em t o be m2.de · i n 

~1 e :10use s but i n th e shops ~n d t :1e p oor k i ds we r e overwhelmed with 

joy. But ~1 e f ~1 s we r e £'.11 o..ngry. And the ch ildren a re a fra i d t o 

s:::.y c.:.n 1ing . .And now t :1ey don I t know who. t t o do. They m::.de ~1 eir 

c:1i ldren rl~ whil e t hey tl1e f c·.thers wen t to the c offee h ou s es and 

b e e r joint s c.nd enj oyed t h emsel v e s , on t he ir ch i ldr en's sweat money . 

if-1il e ~1e 1~ WiVe S C'Jld il n Sl c,Ved t hemselve s. \7h en e 1ey should 

g e t sl eep inst e2.<L Th:::. t 1 s v;hy t l1ere i s so many sickne sses in Haverhill, 

~1 e g erms f r om t hn,t lea t h e r b r oubl1t sickn ess in all the homes. Do 

you t h i nk t:.c.:.t 1 s r i gh t? Would you let <'. t:1i :nc like t h l'..t con tinue? 

You t h t:'.. t hav e t l:. e )owe r. well t o c on tinue , ' t h e fat:1ers kind of lik ed 

l oE'.f i nf,; l i ke t h::.t. But n ow there a l l fl c.. rin ~ up because t hos e h e.nd 

b £',g s ce.nno t be ml'..cle i n t h e ~1ouses . They t l c.zy. Th ey a r e a fre.id 

t o go ba ck t o work . You mu s t s t op tho s e b a gs fr om being m2.de i n to th e 

h ouses om ;l ely . Give th e ldds a breclc . Bec 2.use I didn't 6 et mine. 

I did e 1em ev er si n c e I w<:.s 14 .:md I t m now 18 yeo.rs old. And I' m c.. 

'-O> irl 2.nd I' m sick t:'..nd tired of wc:.tcJ."l in;:; littl e k ids losing fun. l!Icl-ce 

t::e t~ s g o t o work , tllE.'. t 1 1 t:1eir duty , not t he ir l ittle k ids . 

Tl1e mc..nuf nc t u r e r s of Pho i n i x 1Jovel t y Co ., United BaE; Co. and Essex 

e.r e uc ; c.l l t he ir l)Owe r t o h2.ve mnd e i n t he horne s b ec c:-.use t hey 2.re 

in the mon ey and o..r e 2.fra i d t o l ose c.:. clv:.noe like t h a t if we got paid 

p r Ol)e rly I would.n ' t mi nd , but t o do £', who l e b ag t h r ough we ge t Bj-¢ 

a nd it t clce s c.:.h10st 2 h r s . f o r it. So s t op t h em _p l e2.s e. Don 't ive 

t h em o. chc.n c e t o 1)Ul l it th r ougl1. Give t l1e k ids c. b r ec:.k , if you :· 

wr:.n t t l1em t o grow and b e re<'.l .Ame r i c nn ci ti zen s <.nd no t turn t he ir 

fo,c e s E'..b:.i nst .Ame ric£', . Like t l1ey c .. lmost m<::.d e me . So pl ec..se us e a ll 

your f or c e t o s t ol) hand b r.0 s f r om beins mc.d e in t l1e hous e s but i n stea d 

i n t l1e sl1o:rs w:har c tli ey beJ.ong. 

9811 

Ve r y truly yours, 

A. Sweo.t wo rker 
- 445-

P. S. Nobocly ) ic,:ed U ) cour::-.be J.o .- ~. is t: :-y 1 ::..· e ~ l ".fr.:>i': of 

t '1ei r f -:-.L.ers nnd :1usb2.nds. I '1;--.~. t c c.l t:.is ~:.'..\"I it" to yvu . I 

d on t t cl.2.re sign my n['f,e or '"'..clde ss " Oo..;Cf': se if ':.0/ fi d. out tl'ey 

will c ert 2.inly k i J.l me . But i t 1 true every ·/crd. of it. Enclosed 

you will find soE1G )~.e ces t o ):. ove i t . A:1d :ere c re soL c :-.ddresse s 

lere t:1ey mG'ke ~ .. e l:.:id.S V.f.Qrl:~till . .1 id:..1i~:-:. . 1: y U d, n 1 t believe 

lloj .. , .. ... • 

it s end sec:cet <.c;er..t· ''.no. ;ind cut fory ~u se v es. -~ w:1cn you do , 

I know you wi ll sto~ it. 

Primr ose st. - "l -r, 'II:_ ) :, - .'L1 9 "/I J- Q - ')109 - ·"16LI. •.) - - 7fl3 - #1"- - {/:165 

~:ar ri son St. - ·:/{165 'ffi.l55 .'Ll67 Also i,e\7i s St . 1'1 

1f o.J (... I!~ le St . - :.nest :ml f of ~=:::' erh ll . 

i!':'.yb e ~ey <'.r e mixed U.} <. bit b·J.t :m ==:--.rris::m St. G'.L"lost ['.11 the 

:'l uses. Ple.: . .;e J.- some t:1in[;. Let t 1e:.n be done in ~:e c:o:1op s • 

.. ri' .. 

9811 

E'..l-
9811 

- 446-

LID-.iEST 

~ A:.JD :9AG & Si.:.ALL 1:2AT. :3~ ·.7Ac1.ES 

ASS C~AT:::G1J 

I:lr. PeP rson 

C.Jde Au ~1o ri ty 

clies 1.:--ndbo.0 I ndustry 

347 :b,ifth Av enue 

Nevt York , l • Y. 

De <'.r Lir. Pec.r son : 

October 23. 1 934. 

Attc.cl1ed you will f i nU. F'. cor.)Y of ~- t elec;r nn sent 

t o t l1e Code Autlw r i t y , New Yort: City, wi t~ 1 ref eren c e t o ,-:_ m0e tin.:_; : eld. in c:lic c.t:;o in llbnor or 

l:ir. Be rko\''i t.z. 

Yours ver y truly, 

s · r D .m sT · AlmBAG AND si LALL 

-~Z:::t .JAll8S ASS' N. 

B;r 7

: . 1 . F03.ST 

::.1. Fo r s t, Sec' y . 
CODE AUTHORITY 

LADIES HANDBAG I NDUS TT.t Y 

3,17 FIFTH AV:SNUE 

NEW YORK, N. Y. 

•..:·~ 7-

-'-'STERr 1 IO( 

Oct ob e r 23 , 1 3·: . 

AT A MEETI NG OF TI-JE MIDWEST HA BAG M.ANUFACTURERS P.ELD 

AT THE BISMARCK HOTEL MOJDAY EVEN I NG OCTOBER 1.·,7E TT~ SECOND 

IN HONOR OF !ViR. M. BERKOWITZ CODE· DIRFCTOR TES FOLLOW! G 

RESOLUTIO ~ WAS ADOPTED -- A VOTE OF THAJ.;KS BE GIVF.- T~JZ 

ENTIRE CODE AUTHOR ITY ESPECIALLY MR . BERKO ITZ FOR THEIR 

INTELLIGENT Al\JD EXPERT I / TERPRF.TATIOr OF TJE PURPOSE OF 

THEN. R. A. ALSO A VOTE OF THANI~S BE 11 IVE1 AR . i '. H. 

BLUMENFELD MIDWEST REPRESE TTATIV I OF T.:E CODE A T iO!UTY 

FOR HIS IMPARTIAL ASSISTAKCE TO T~IE i .. IDWEST ·.lANUFACTURERS 

IN EXPLAINING THE CODE F1JNCTIOi.JS. 

?:HDWEST HAND:9AG & :~iALL LEATHER . ARES ASS 1 • 

:··!. L. FORST , Secrc t a r y 

Cha r ge to: 

Mid'J!Tes t HP.ndbag & Small Lea . War es A s ' n . 

9811 
EX HI B IT Y 

Report of A. ~ Fi she_r on t he 3udge t 

9 811 
.LEI.! 0 rtA.l~DU: : 

To : 

- 449-

EXHIJIT Y 

(t 

Colonel Walt er 8angu;R 

e:J ut~r AdJ'lini strator 

A. A. Fishe r 

Assist a.:'1t De, uty - St a ff .cpi~es entative of 

re=tile Division A&Jinistrator in Liaison 

Tiith Labe l Code Authoriti es 

Subj ect: Lad i e s 1 He.ndbag Code Authori t.r 

To up~Jle:.-1en t t he Case ~;i stor::· o:: t~e .:tbo· e Co<ic 

Aut ho:L·i t y- , the follo ~1ing data pe:ctinent to Parar;ra1i C of the 

o·u..tl i:ne of Cc::..se Histori e s , _ as been obtaine · fro'1 :Uoc~:e ed Bud-e s 

in t he files of t he Cocle :rtccord.. 3ec ion oi t : e :- .-::. A. , aucli ts in 

tl1e fi l es of t he Cod.c Authori ties Acro·J..Tl s Secticm , supplene .tee'. 

b~r c::n inslJ ection of recoro.s 1-::ert by the Co de .utLority at its 

office l ocated at 317 Fifth Ave:1ue , l~e: Yo rk , ' 1ec; o . 

:BudGe ts and 13ases of As r.es£~.1en t 

Tl:e Code for the Laclies I !:vnd..bag L1CUS r v .as approved 

~ie. :tc h 14 , lS34 , effective ·:arch 26 , lr·34 . 

The or i g inal Bud,Get Pas subll i tteci foi~ the .._1e r 11Jc:. 

~~a rch 26, 1934 to -.. a rc· 26, 1935 in the a t;.;:recate anoun of 

$140,180 . 00 estioated e:~enditur s, it h t he total c ross inco~e 

estir:2.teo. at $149 , 999 . 00. This 3ud""·et '."'as a) ;roved b~- Adr.1inist ::-ati ve Order 332-8, :.;UJ- 28, l 034 , ·-- i t :1 t e '"'ollo·~ing bas is of contribution authorized by Article VI, Sectior. 7 (f) o.~. t e Cocle · 

l/3 of ~; of the 6.ol::.ar st.\les J:uue ~€)" · c i o. h i - been 

file ( r·i t h the Ac1m i nistl·ation --., rio ... to the c:.1'ective date o: said 

Ord..e:i.', a staJ of Orc.e r 332- 8 \'as a 1_1l'Oved. b-r _cL L · st:i.·~.ti ve Or er 

332- ll , m1der Qat e of J une 9 , 19 7 4 . 

A r ev i sed :Bu dge t for t he pe iod ·:arcl: 26 , 1° 4 to 

ai~ch 26, 1935 v:ras subr.1itted J u...'l.c 28 , 1934 esti 1ating a re 

e;~enditures, for t he pe riod , of $133 , 540 . 00 . SaiO. r evised 

i l'l the Q:r: ·:nmt of $133 , 54.0 . 00 -ras a!1proved July 16, 1 r..;4 1it 10 

:_-J :·evimlsly a))roved basis of contribution af 'irned (to ···it , J/3 

of ~; of t he total net d.ollar vo1une of sa.1cs) . 

l.Iarch 13 , 1935 a ne Bud.(_:et .-.as sub,.1i t ted ... or he perioci 

fron Eal~ h 26, 1935 to h·arch 25 , 19'"'6 , C"ti 1atinF a- ·regate e:· .• enitul~es of $110 , 641 . 00 , brol:er: clorr-11. i:rto t··o pe:i.·iod!'; ; f on 

L!a:cch 26, 1935 to Ju.n.e 1 6 , 1935 esti,.~o.te: e:::lc:1 ' i u r cs of 

$31,540 . 00 ; frOL1 June 17, 1935 to; ·HCll 3~; , 19~6 . cstinated e::ryentures of 9 , 101. 00 . I n adc".i ti o::. t o :·cflcctL ~ , reduction of 

9811 
-450-

023 , 000 . 00 in esti:1ated expenc:itures t he nenly subn~tted ]uC..get 

?r ovicJ.. ec' f'Oi' 2. r ecJ..uc tion in t h e bas es of assessE1ent to 1/4 of 1% 

of sc-J.es of 1.:mufactur rs a~1c. nanufacturing jobbers. Based upon 

an esti:":c:tt '-'0. InC.ust:::y vol·ct.r.Je of $45 , 000 , 000 .00 , the assess:"Jent 

ua s estiQated to provi de a t otal inco 1e f or the year of $112,500.00. 

The r~ethocl of collectint: as sess ~e nt r: to b e as follons: sale of 

l ab<SJ. s to nanufa cture rs a..YJ.c'.. nD.Ylufac turinr: jobbers at the rate of 

J2 . 3 0 ·.Je r t h:rus aYJ.cl labels, t he total a;1ount of label sales to be 

credi tBd. ~-s _ a1 ac3.va..'1c e against the a ssessuents. 

Ac"l..-1inistrative Order 332- 25, cJ..ated l.~ay 24 , 1935, a1Jj1 roveci 

t l1.e sV.J!iitted Budge t t o t he e::;:t ent of $31,540.00 for the period 

f TOL: l rch 26 , 1935 to June 16 , 1935, and subject to an extension 

of the Co de by O}Je r ation of the l a\7 , c ond.i tionally ap:;:J roved the 

'b"t..l0 .. {;eted ex:per.cli tures f or the Je riod from June 17, 1935 to 

iiarch 25, l93G L1 t he amount of y)?S , 101. 00 . 

The basis of contribution y;.~oved by Order 332-25 as 

authorized ~r Article VI, Section 8 (f) of t he Code ·.as aDencJ..ed 

nr s 1/4 of ;~ of g ross sal e s of each nerab e r of the Inc:i.ustry, payable 

mon ly, provided t hat ne:.1bers of t .I.1e Inclu::::.try shall purchase labels 

to be u sed on articles nanufactured and/ or soJ.d a t the rate of $2 .50 

:Jcr tho-t.J .. sa,.J.d and charg es pai d conside red. as deposits b:r menbers of 

the In C:.ur: tr ' to b e credited at the end of each mon th, during the 

buc' .. ; etary 1Je riod. CalculatinE; on the app~coved basis of contribution, 

(to rri t, 1/ Ll: of ;~ of g ross sales) Order 332-25 also provided_ that 

t he CC:J,OOO . OO included. in t he budg et for trade developr•lent and. research, or any p ortion thereof, shall not be expended unless such expe~1di tures shall f irst b e authorized by the National Industrial Recover:y Board. 

Label Sale s and Incone 

I:1. subn ittil1G the last budg et l.iarch 13, 1935 the Code 

Authori ~r rel')Orted: 

:bstinate of Labe l Sa les f ror,1 .i.farch 26, 1934 to 

June 1 8 , 1934 ( date of first sale) 10 , 000,000 labels 

lil\x·1be r of Labels actually sold frO!:l June 18, 

1934 -to January 31, 1935 

Esti~.1ated February lst to Larch 25 , 1 935 

Tot c l Labels estirnateQ applicable to full 

~rear endints I.:arch 25, 1935 

9811 

25,262,200 If 

6,000,000 " 

41,262, 200 labels 
- 451-

For the ne buQ.eetary Jeal~ -=- roM .:a:i.~ch 26 , 1935 to 

·:~l:i.~ ch 25, 1936 t he Co de Autl ori ty estinate' a :n·obabl e sale of 

65, 000,000 l abel s, divide~ into 45 , 000 , 000 l abels to be sold to 

t he 325 p resent nembe r s oi the Ladies 1 - andbag Ir.C:.ustry pa ing 

asse ssr:1ents, and 20 , 000 , 000 to be sold to t 1o ne11 (3 rOU}JS , (to nit, 

Ioitation Leather & rovelties Inclust:ry, a:1d ~1 ing Eags , Bathing 

Eags, etc., Industry) e~~ ct ed soon to be incluC:.ed under the administration of this Code Authoritv ., . 

The Ladies 1 Handbag Industry meDbers subject to the 

provisions of the Co de r:ere stated to be 500 unit establishnents 

consisting of 325 manufacturers and ranufacturing jobbers and 

175 contractors, the latter not being subject to assessment, with 

total er.1ployment of 15, 000 worl;:ers on an estimated annual payroll 

(for 1934-1935) of $9 , 000 , 000 . 00 

T'otal Industr;y sa les for 1934-1935 nere estimated at 

$35, 000 , 000 . 00 againat Tihich assessnents had been collected to 

January 31, 1935 on net sales of $26 ,093,664 . 

The mandatory use of labels bec~e effe ctive July 2, 1934 

at $2 . 50 pe r thous~~d, but the first issUr.~ce of labels occurred 

J1..me 18, 1934. Fron that dat e to I.Iay 3 , 1935 Bhen the records of 

t he Coae Authority ~ere inspected the follo rring is a monthly t abul at ion of regular labels sold to r.;anufacturers and t he agcregate of 

sticke r labels sold for r:1erchandise on hand July 2 , 1°34 . 

Unit Sales of Labels 

1934 Reg"Ular Labels 1935 RegUlar a. l o 

June (from 18th) 1, 220 , 000 Jan. 3 , 543 , 000 

July 2,154, 000 Feb. 3 , 092 000 

August 3,529, 000 ·arch '7i ,754,000 

Sept enber 3,487 , 000 April 4,571 , 000 

October 4,044,500 r;ay (to 0rd) 491 , 500 

NoveLJbe r 4 , 310 , 000 Total June 18,1934 to 

J ..Iay 3 , 1935 36 , 607 , 000 

Total Sticker Label Sales 825,000 

Grand Total Label Unit Sa l es 37 ,432 ,000 

The actual cost of lRbel s to the Code Authori y Tias : 

Regular Labels first 30 , 000 , 000 at 40¢ per I' 2/10 E. O.!' . 

next 10 , 000,000 at 27¢ 11 11 2 I 10 E . 0. l.i • 

Sticker Labels first 500,000 at 19r 11 11 

next 200 , 000 at 19-.;¢ 11 11 

last 200, 000 at 25¢ 11 II 

9811 

- . 

' 
-452-

1i{nen the Co c:te Authority a ctivities rre re suspencled 

i:ay 27, 1935 a relJo rt of aucLi t for the first budgetary :;_Jel~iod 

ended i;arch 26, 1935 '.7a.s in coui-s e of :;:celJar a tiOj_1 by Hones f,; Do.vis, 

Certified Public Accoillltants of o21 Fifth Avenue, · Yer· York . The 

l atest interira audit rc b~r the se 2.ccountants 'las for the perioc. 

f:co:1 :~rch 26, 1S34 to February 28, 1935 (see files of Code · Authoriti es Accounts Se ct ion) fron ',·rhicn the follo Tiing is s11I'1mari zed: 

Ladi e s I Handbag 'Code Authority' hiarch 26' 19'34 to rebruary 28' 1935: 

Incoce : 

Assessr.1ents of 1/3 of i% on -1'anufacturers 1 

Re;Jorted Sal e s of $28 ,166,893. 00 · 

Advanc es against Past Due · As cessnents 

AO..vances against I'ebruary As·sessnents 

Sales 'Jf 235,225 Retail Lab els 

Less co st of 3.etail Label 's sold 

Total Incor,1e 

:;~.!.Jen se s: 

Cost of 28,354,700 Labels issu ed 

to r:anufa cturers 

Salarie.s: Adn;i.nistration, Con -

liance and General 

Rent & Othe r Ope rating EX]_Jenses 

Off ice ~quipment & Organization 

Expense ; 

Tot a l Expenses ' . 

Surplus of Income over Expense~ 

$588 .10 

46.41 

$:1,228 . 56 

34,078.27 

12,356 : 20 

7,911.41 

?inancial Op e rations 

$93 , 839 .66 

" 3', 636 . 69 

7 '731. 25 

541 . 69 

'$105,799.29 

$ 65,574.44 

$ 40 ,224. 85 

At February 28, :1935 the Gode Authority had accumulated 

a surplus of Income "ove·r expend:i ture s amounting . to $40, 224. 85 

Tihich Tias reflected 'as ·follo,_.-rs: 

9811 

Cash Balances 

Due fron Handbag Lanufacturers 

Travelling Fund (Redeposited 

3/4/35) 

Insurance Pren iurJs Unexpired 

Inventory of Labels on Hand 

Total Assets 

$42,690 . 71 

614.43 

345 . 27 

220.00 

244 . 03 

$44,114. 44 
- 453-

Less 

Due t o Hancloag anufacture :ts ~l , 187 . 57 

AccOU..1'1ts ble C:. Accrued 

E~~ __ enses .... ~ ! 702 • '~2 ) 

Total Liabilities 

Sur:_Jlu.s 2/28/35 •.riti.1 Coc.e Authority 

as Trustees 

$3 , 889 . 59 

$40 , 224 . 85 

Excep t G.urin:; the earl y neel~s o: Code Aub1o:..·i tJ operations ,...hen a te!'1~1 or :ry a:1l~ loan finenced initial cormittnents, 

the sal e of labels p roviO..ed ample fur..d.s for required e::~endi tures. 

Al t h ou{;h the <:vctual income na.s f:-..·or.1 assesr:~L; ·, s on 

r11anu~acturers a;.1d r1anufacturing j ob'Jers sales at the rate of 1/3 

of l ;'; for the first buc.getar y y ea r and 1/4 of 5~ from i.arch 25 ,1935 , 

t l1 e label tras a ] O"erfu l inst.ru."'1ent in ex:)editin{: a ssessment collection . I nC:.us t:i."JT ·1 er.1bers o:..·cle:ced anc3. paic-_ fo r three nee1

:s 1 su~1:_1ly 

of lel:be ls nhich <.:e r e furnished onl;y nhen the ap:1licant rej_)Orted 

act·,.le,l sal es f or the jJreced.in,: i10nth . The assessnent thereon 11as 

cha:rg eci to the an11 l ica.n t a:,1d the reni t ta.nce accompanying the order 

for labels uas credit ed a~a inst the assessment so charged . 

I n vie·.; of accumulated, and accuou..latint; surplus, the 

Cod.e Authority on i.,arch 7, 1935 _vot ed. the d.istribution f ron t he 

sur:;_Jlus of $30,000 . 00 to nembc r~ of the InC:.ustr'J in :)ro:-,o rt ion to 

the anount c ontributed durins the budge tary ~rea r ending 

i.iarch 25 , 1935 . Follo':7 ing t he vote, the surplus of $30 , 000 . 00 

uc,s thereupon set;regated in a special ban,{ account and distribut!i.on 

hac_ been macle thereu·0o!'l to t he ext ent of about $23 , 000 . 00 at 

i.:Iay 3 , 1935 . The un~. istribut ed balance . of $8 ,742 . 79 nas bein ~ held 

a raitine f i nal submission of sal e s volune figures from certain members of the ~us try. 

The actual c ash balanc es in t} e Code Authority banl·:: 

accounts at the close of business, i~ay 3 , 1935 , ••as as follo•-rs: 

Ster l i ng Nationa.l Bruli-:: 2: Trust Conpany 

Lanufacturers 1 Trust Conpany 

11 11 11 (Spec i al Acct) 

$9 , 454 . 83 

10,416 . 24 

8 ,742 . 79 

This Code Authority h~d no account ior restitution of 

the empl oyees 1 nages as the olicy adopted ' as to obtail fro .1 the 

res~J ect i ve employers he l~s to t~1e order of t11e ermloyees 1hich 

lie:..·e turned over to and C.istribut ocl b the Code Authority to the 

er 1:0l ~rees against a receip t r e t ained in the Code Autho it' fil e s . 

Durinc; the peri od of its operations to i:arch 21 , 1935 

t~1e CoG.e Authori ~r 1 s Conpli ai1Ce Division r1ade 3,158 investigations. 

B.estitution of rages to the 8l10Ullt of $14 , 811. 22 \7as made to 

l, 041 enployees of 70 firms found non-cooplyin& rTi th Code provisions. On L·arch, 31, 1935, 85 cases ere .:penclint; invol vins about 

Cl6,ooo .oo . 

9811 
-454-

General 

Genero..l conp l i ru1..ce ,-~ i th Code ::_Jrovisi.ons r·as obtained in 

a ver-;r sat i sf actor~;' cl.ec;:cee throubh the Jel~sonali t y t:mc_ hic;hly 

con structive o:~.cti ie s of the t rro Cocle Directors in cha r ge res-

:Jec ti l~r of the Adnini st:L at ion and. Co:n ;lie.:.1ce Divisions . The 

Co ~::)l ance Direc tor nade frequent lJe rsonal surve;jrs of Industry 

establishments anc. obtaine0~ hea:L~ty COO~Jeration throughout the Ind..ust:L''Y . 

onthl ~· <1J."1G_ ge [; ra 1h ical st a tistics :oertaining to Ind.ust:L"J7 c.ollar sales, Labe ls issued., Hand..bags Put in llorl:, Average 

Uu.L1ber of ::imlJloyees, lTm11be:..~ of Hours norl:e cl and '!Jages Paid, during 

t he ::_)el~ io d enC.ec"'t. ]'ebrual";y 28, 1935 r.1ay b e f01md in the audit re-

)O:rts af'llom~ s ffiic1 Davis il1 the Co de Autho:L~ities Accounts Section 

f iles . 

A xn~t ic,l su;-:r a~:-;y :fo:L~ the pe:L~i <i. fron June 10, 1934 

to Februar y 28, 1935 follol's: 

~ea lTe t Sa l es :J.e-oorted( *) Labels Issu ed. Handbar:;s Put 

Anount ~;) Ho. .... ; in Horl:: iO 

lTer: Yo :c ~ City $12 , 091, 814 42 . 93 9,556 ,000 33.70 7,475,610 

IJe·.-~ :;:;ngland. 5 , 642 ,972 20 . 03 6,391,125 22.54 5,073,142 ~ic_ -_le Atl antic 7, 980 ,718 28 .33 10 ,737,700 37.87 9, 123, 261 

Soutl1ern 637, 855 2 . 26 436 ,500 1.54 292,002 

! i i -.. r e stern 1,558,894 :3 . 53 1,069, 375 3.77 815, 892 ~Je st e rn 254,645 .92 J.6L1, 000 .58 99,631 

$28 ,166, 898 100 . 0()5; 28 , 354 ,700 100.0~;22,879,53 8 

(*) The nunber of i1anufac tures ~l'e}JO l~ting sales during the period 

varied as follou s: 

: o.:L~ch 26 to A~o ril 30 ,. 1934 

Lay , 1934 

J une , 1934 

July, 1934 

AUt,'llS t' 1934 

Se11t . , 1934 

Octobe:t , 1934 

over:1 be r, 1934 

December, 9~:> 4 

J anuary , 1935 

February , 1935 

Re1Jort s Received 

267 

273 

272 

282 

302 

311 

303 

291 

271 

193 

3 

Fo llon i:1:_:; the Su:)rene Court dec ision in the Schechter 

ca e j~ enLLe d on l_ay 27 , 1935 , lle :L~e ·:·a s strong evidence of tlle 

es L~ e ·;of i.J1enbers of tl1is Inc"' .. ustr~r t o continue the Fair Trade 

P:ca c tice p rovisions of t he Code. There continueci. ap})l icati on to 

S8ll 
- 455-

the Co C:. e Ant hori t y fo:c t he i ssua11ce of HRA 1::!-bels and an unre,.,o rtec_ mL1be r of labels, it '7c.s understo od , n-ere t he r eaft e r suppl ied 

t o a) l:c nt s ricl-::inG such volu ... l'lt ar~r applica tions . 

Curr ent ;> r e s , :te ol t s inci.ica t e rt J!1Ce t int; or a .';ene r al 

comr.!ittee of t h e l"i01·1en 1 s Handba g In c.'.ustrJ , to ac".o-J t a volunta:rJ 

Co rle a g ree!! en t, Ti i l l be helc. on J une 2Li , 1935 , to b e folloned by 

an I_ d.u str~~ 'li cie e;a t e::--L1G on J "L'Jl e 25 , 1935 , to a.lJ}HOve the 

Couni t tee 1 s ~J ::..an. L:t. A . l :it ten th<:'..l , E::~.: cuti ve Dire ctor of t he 

for l~ Ladies 1 Handba _ _, Code Authority , is re 1o.~. tee: to have said 

th.:.t fi rns r c)re senting :-:10 r e than ~ of t he sa les volu.'lle of t e 

L.:.6:--1st:;::' have a,;r eed t o the D&op tion of such an ag r e ement u:1on t he 

co.:ro :it te8 t s · , app roval. The p l o.n aios to continue tl e san e code 

':Tc,_;:e s, houl~s and fair trade nactic e rules. A bureau for the 

reg istration of ~e si gns Ti ill b e an adQed reat ure . The agr eenen t 

also '7ill call fo r t he u se o ~ a 11 security l abel 11 that ,... ill serve 

as a sJ'11bol to r e t a il e r s anc"'. consuine rs t hat t he manu facture .,.. is 

co l~ring tri th nage and !w-u.r · st andards, is not eo:ploying ch ild J: •• • 

labor and is e.bi clinG ,- t he f a ir trad..e rule s. 

' I 

9811 

(Sir;n ed) A. A. Fishe r 

A. A. Fisher 

Assi st ant Deputy 
9811 

- 456-

Excerpts f rom Code Authority 

Minute s a nd bri ef in r e Price Groupings 

. I 
- 457-

EXHIBIT 11 Z11 

CODE AUTHORITY 

LADIES 1 HAND3AG INDUSTRY 

MEETI 1 ~ NO . 18 

HOTEL McALPIN - AUGUST 2, 1934 - 6 : 30 P. 

(EXCERPT OF INUTES) 

Code Director, A • . Mittentha l, r ende r ed a r eport on Pri ce Grou ings. 

(Report atta~hed) Exhibit E 

It was duly moved by Mr. G. Meye rs a nd duly .econded by 

Mr. M. Warschauer, t lmt the Code Authority go on r ecord 

in favor of· nrice grounings , and that a c ommittee tnke 

the matter un with t he r e tailers, and r eport back t o the 

Code Authority. Ca rried. 

Reuort rendered on Committee to Study Exi.ting Conditions 

in the I ndustry. Code Director, A. ittentha l, uresented 

the following resoluti on for adonti on: (Exhibit F attach d) 

RESOLVED tha t the Code of Fair Compe titi on for the 

Ladies' Handbag Industry b~ amended by 

inserting a trade practice rule hich 

shall be kno n .as Section 16 of Articl e VIII 

to re~d as follo s : 

11 N0 member of the indu try shall r enair bags 

with ut making a r easonable char ge for uch 

repa irs, when such bags show t hat they have 

been in use. No memb r of the indu try shall 

pay any for rvarding charges for uc r pairs. 11 

I t was duly moved by Mr. S. Mutterperl and duly seconded by 

Mr . M. H. Blumenf eld that t hi s r esolution be ann r oved . 

Cqrried . 

Meeting adjour ned at 11 : 30 P. M· · 

9811 

I hereby certify that t he above minute a r e a true 

record. 

/S/ Irving Schoenholz 

Secre t Ar y 
-458-

REPORT ON PRICE GROUPINGS 

The matter of nrice groupings was discussed with the De~uty 

Administrator in Washington, and also with the Legal Div-ision. It is 

suggested by the De~uty Administrator that the Code Authority ask to 

have the Code amended so as to include the follo~ing section: . . 

"Wholesale Prices •••.• To maintain established trade practice , and to limit the multi~lica.tion of number , but 

without ·any attem~t a:.t nrice fixing, each uerson being 

free to determine the lue to be given at eRch price, 

the following shall be the wholesale prices, per dozen, 

f or sale to r e tRilers, and no intermediate nriQes may be 

used. 11 

It will also be necessary to insert into this section the 

list of nrices to be included in this nrice grouning. If the Code 

Authority f ee ls that it is imnortant to have price· grouuing in the 

Code, they should act on this amendment at once. 

PRICE GR_OUPINGS 

The fixing of a pr~ce rang~ by · manufacturer does not in any 

way mean the fixing of prices in the sense that it destroys competition. There are no two manufacturers who make identical bags, 

either in style or materials or in exa ct value. A nricc range set 

by a manufacturer for his ~roduct is absolutely necessary to such 

manufacturer, narticularly those with limited canital and small 

production. 

It is for these reasons the industry, during the nast five years, 

has become highly specialized as to a particular price range. The 

largest number of manufncturers make either one or two price range9. 

The l a rgest volume of business in the industry is had by those 

who manufacture bags to who lesRle at $7.75 a doz~n only, ·.and ciJ15. 75 

a dozen only, and ~22 .50 a dozen only. They give the best value 

possible at the limit of nrice thPt the reta iler will uay for a bag 

to reta il at $1.00, ~~ 1.95, or ~2 .95 res-pectively. With every manufacturer competing on these nrice levels comuetition is based entirely unon value and style. The ·industry is ·a high~y styled one, 

and the manufacturer who guesses wrong on style, color or material, 

suffers a loss regardless of the amount of intrinsic value in the bag. 

To uroduce a finished handbag requires the assembling of from ten 

to twenty different materials, and the nroces sing requires a bout twenty 

distinct ouerRtions. It is imu ortant that the Ladies' Handbag Industry 

be nermitted to have nrice grounings at which price groupings manufacturers will com~ete on a basis of style, auality and va lue. Such price 

rou~ings shall be maintained by all manufacturers in the industry. 

9811 
- 459-

B:9.IEF 

PRICE GROUPINGS 

*** 

The construction of a sample line by a manufacturer at th 

beginning of each season involves a c onsiderabl e cnnital investment , 

sc that the price levels at which his bags ill be uriced to the 

retailer must be deter mined in advAnce . 

The r e t a ilers have established w110 l e,ale nrices "hich they are 

illing to nay f or goods i ntended to sell at t he ir est abli hed r etail 

urices. All man1liacture r s kno these established 1holesale nrices 

and figure their lines t o sell a t the se establi shecl nri·ces , ea ch . 

manufacturer striving to ffer t he most a t t r act ive styles ana give the 

most 'Value.· · , 

. J 

The cust om in the industr y is to ~ake bags fit t he nrice levels 

demanded by the r e t a il ers. · Any manufacturer ho offe r hi line at 

prices slightly above the established nrice levels, or a t nrice in 

between t wo nrice l eve l s , is c e rte in t o e::1counte r bu,ying resi t a.nce 

from the ret.!:d l ers. TLe r esult of t hi s custom in the industry makes 

each manufacturer try to create his own styles so that no t \'l"o manufacturers ?ffer the identica l bags i~h r in ma t erials or in style . 

Fully 95% of t he manufacturerR in t he industry follow t hi s custom 

of meeting established nrice leve l s . As a r esult nossibly fifty or 

more manufacturers offe r their lines at G7.75 a dozen t o the r e t a il r s 

who in turn sells such bags at the long establi~hed price of one dollar 

each at reta il. The experience f the r e tailers have been t ha t if su h 

bags were offered a t $1.05 or Sl.lO each, the volume of sale ould 

decline more than fifty percent. The same is true of bags t hRt r etail 

at $1 . 95 each, $2.95 and $4 . 95. The slightest increase in the price 

level is certa in t o r esul t in a decrease in unit sales. 

The five percent of the manufacturers who offer their product at 

less than the established price levels, a r e usually a fe of the larger 

manufacturers ho do so f or the purpose of satisfying a grievance 

against some other manufactu r er, or because they manufacture a lin at 

another price level which i s t he ir main line , and by pricing their 

$7.75 a dozen line a t $7. 50 a dozen or less they crea t e a. fa.vorab le 

impression for their ma in line. 

At the same ti ~e , the r etai l er is not desirou of buyin at a 

nrice lower than $7.75 a dozen , unless he wa r ea onably c rtAin that 

no competitor could do likewi se , becau e a price lo er t han 07. 75 may 

induce some of his compe titnrs to sell the bag fo r less t han · 1: 00 

retail and the net margin of profit resulting from a lo~er r e ta1l pric~ 

is likely to be less t han the margin of pr ofit derived from payin 

$7. 75 a dozen and selling it for $1.00. 

I 

9811 
-460-

The retailer, even if he is not inclined to buy the line that 

has be en qu0ted at $7.50 A. de zen cr sometimes at .'S7. 25 a dozen, uses 

these prices neverthel ess to break down the price lines quoted at 

$7.75 a dozen. The quotiug of a price cf $7.50 a doz en or $7.25 a 

doz en by this small number cf manufacturers, creates a price war 

between the manufacturers. The lowe r prices must soon be met by 

other manufacturers. The price of 7.75 a dozen, at which price 

fifty manufacturers have built their lines, in which they are giving 

the best value they can afford t o give with only a minimum of :nrofit 

added, is immediately de stroyed. 

If these manufacturers cuntinue t o sell the same lines at the 

lower prices they built to sell at $7.75 a dozen, the difference in 

prices usually is enough to offset their margin of profit. If they 

discard their lines and make uu new lines tu meet the lower urice levels, 

they must do so at a comnlete l uss of their investment in time, materials 

and labor. The cha nces are, after they have made uu the new lines to 

meet the lowe r price levels, tl1e manufacturers who are engaged in this 

price war competition will again lower their prices. The who le uractice 

is a vicious one, with the ne t result that neither manufacturers nor 

retailers mru<e a profit. The l a rge number of failures amongst the manufacturers in the industry each year will bear ~vidence of the results 

of this destructive price competition. 

Price groupings will establish price levels, and prevent destruction of profits in the industry. 

9811 
I ' 

9811 

- 461-

~ ! H l ~ I 1 A-1 

Virgin~a Art Studios 
- 462-

ilarch 30, 1934 

Hr. J ames C. 1/ ort h~r, 

Assistant Deputy Administ r a tor, 

National Recover y Administra tion, 

Wa shington, D. C. 

Dear Sir: 

I am advised by t he Virginia Art Goods Studios, Inc., locP.ted in 

this city, thr> t acting u:o on Executive Orcle r fr2, of July 15, 1933, 

whereby privilege is g iven all ue rsons or corporations to petition for 

excention to, exe''1ntion from or modificrttion of any Code of Fa ir 

Compe tition ich mate r i a lly affects said persons or corporations, in 

which sa id pe rsons or corporations have had no uart in forming either 

in person or by representation, they ill file a petit ion for modification of certain provisions and conditions set forth in the Code for the 

Ladies Hand-Bag Industry , approved Code #332. 

In all fairness Rnd j11stice the Lynchburg Chamber of Commerce 

earnestly hones thrtt t his concern will be granted a hearing in this 

ma tter. They '.Yere not represent ed '.7hen the final code was adopted, 

and know nothing of its final provisions. I have studied this Code 

cn.refully , and f eel tha t it '"Till ';;rork an undue hardship on this concern. 

Lynchburg is an industrial center, and pra ctically every industry is 

now opera ting under its rmanent~: co~e • . · In .our shoe factories, textile 

mills, garment f actories, hosier;r mills and ~:J ractically all others, the 

minimum ,.rage of 30 cents per hour for a 40 h~ur week, or $12. 00 a week, 

is fixed. Identically the same cla ss of labor is used in the hand bag 

establishment a s in the other industries and it gro ssly unfair to them 

that they should be compelled to pay a minimum wage of $14.00 per week 

as against $12. 00 per week minimum existing in all the other industries 

in the city. The other industries in Lynchburg are operating under 

codes in which l abor differentials a re allowed, because of their 

southern loca tion, out no such differentia l is allowed in the Hand-Bag 

Codeo The codes of all the other industries in the city allow a 

differential for apprentices and learners of at least SO% of the wage, 

whereas the Hand-Bag Code makes no such provision. 

I am thoroughly acquainted with the nature of the business of this 

hand-bag establishment, and I no~ that they operate on a very narrow 

margin of urofit. If they are compelled to pay the wages prescribed 

in t heir Code, I firmly believe it will result in their being forced 

out of business. They are only a small establishment as far as the 

industry is concerned, and have continued in business only by overcoming 

t remendous handicaps. 

They wi ll petition for a minimum wage of 

a 40 hour week, and f or a e of SO% of this 

for a period of at least six or eight weeks. 

be eminently f a ir, and Ti ill only be g iving to 

privilege s alloTied under the va rious codes to 

in the c ity. May I express t he hope tha t the 

9Sll 

30 cents per hour for 

minimum for apprentices 

I think this request to 

them the same rights and 

all the other industries 

petition of this concern 
- 463-

for a hearing will be readily grc:mted , as I aM sure t 1 at the fac s in 

the CRse uill warr ant? 

Very trul' yours , 

( Si ned) R. D. R. 

Robert D. Ramsey, 

Business i.1P..nage r. 

Copy to 

The Virginia Art Good" ~ St,lldl. os In t c •. , 

Lynchburg, Va. 

STATE OF VIRGilTIA, 

To-Wit: 

CITY OF 1YNCHBURG, 

I 1famie E. Rohr, do .he reby ,make aff:i,davi t r s follows: 

l. I am President of VirginiaArt Goods Studios , Incoroorated, 

a corporption organized under the laws of the State of 

Virginia; and engn§ed.in the manuf2.cture and sale of ladies' 

handbags. 

2. I have been President of s a id corpor at ion since its 

organization, and have Personal knowledge of the facts 

herein set forth. 

3. That said Corpora tion has complied with a ll the provisions 

of the Code of Fa ir Competition for the Ladies ' Handbag 

Industry, excePt ::>.s to its provisions rela ting to labor , 

as to which riarticular ro~isions it has been , and is, 

operating umdeF an . exemution order, expiring September l, 1934; 

and thPt it has complied 1with all ·the provisions and conditions 

of said exemption order. 

4. That it is essential to the int er ests of said Corporation thn 

said Pe riod of ex~mp tion be extended to such time as the 

peculiar situa tion of said oruo tion, and the fe others in 

like si tu::> tion, may be appropriately ·orovided for by amendments 

to tl1e said· Code whi ch. hnve been, or in due course rrill be , 

presented for c onsider ation. 

5. That the existing provisions of said Code relating o labor 

work undue hRraship upon s a id Cor por ation for the folloiTing 

reasons: 

9811 

. . 

Ea) The business in nhich it is engaged is highly 

COiTpet i t ·i ve. There a re many such manufacturers in 

the northern states, vhere the business h2s been an 

established one for many years; and where the sJ~illed 

labor required is plentiful and easy to secure, and 

is able to turn out finished products in a volume ? d 

ith a speed which can be equalled only equally 

skilled and experienced l abor. 
9811 

(b) The Virginia Art Goods Studios, Incoruorated, is 

a Pione er in its localitJ . It~ f actory is located 

in Lynchburg , Vire inia, .,.-;here .the requisite skilled 

labor is co ~paratively sca rce, ~~d has to be trained. 

And even when locally trained, the av ilable labor 

is unable 'to ·compare with that in northern factories , 

irt the volume and speed of production. 

(c) The practical and inevitable result is that the 

Virginia Art Goods Studios, Incorpora ted, cP.nnot 

successfully compete with other manufacturers whose 

output per capita of emuloyees is so much greater. 

( d) An analysis of the oooks of Virg inia Art Goods 

Studios, Incoruorated, discloses that during a typical 

t 'l'iJo-weeks period in September, 1S33 , the Comnany ' s 

nroduction Rnd sale cost, exclusive of officers' 

s c:tlr:-.rie s and overhead, ,...'P.s g;l0, 321.12. The sale price 

o'f the products so ~roduced was $12,205.50, shoTiing a 

substantial loss when sa laries and overhead are taken 

into accdunt. Unon its f all operations in 1933 our 

Comnany sustained a loss of $11,~00.00 . During that 

·oeriod our Company operated under a wage scale which 

VTP.s a 20c'b incre.qse over tha t previously obtarning , 

accomplished by reduction of hours of labor from 48 

to 40 per \'ITeek. 

Every rea sonable endeavor has been made to increase 

production by nroper methods, but the wage scale provided 

in the Code gi ves .. li ttle prosp.ect of ·profitable operation. 

During the first two weeks of August, 1934, the sal e 

'vP..lue of the Comnany's -products was $6,550.00 , the 

production and sale cost thereof, not including salaries 

and ove rhead, wa s $4 , 853.47, still indicating an actual 

loss. 

Tests mp de in our factory by our production manager , 

rrho ha s hP.d e:cperience in northern factories, indicate 

that the volume' of production in our factory by 

employees available in our section, is approximately 

70% of that in northe'rn factories, due to- difference in 

the ef ficiency of our e8plbyees in comparison. 

Although the nrices of our products have left no' margin 

of profit, a s P.bove set forth, they are higher than those 

of northern manufP..cturers for similar products:. Therefore 

it is obvious that the selling price cannot be increased. 

The onlJ' source of relief would seem to be a more 

eauitable wage scale for our territory. 

The Vi r g inia Art Goods Studios has been enabled to 

continue in operation because of its ownership of patents 

on a spring line of ladies' bags which it has been able 

to manufacture in volume and sell at a reasonable profit. 

,, 

'· 
- 465-

:aut :recently there have been infTingements· of its 

Pc>.tents, and cheap imi <=~.t ions of its exclusive 

products, ..,.h ich have InRterially affected its 

~usiness, and \'Till most probabl~r be more dis?.strous 

in future pending del~ys f~d difficulties of 

litigation lookin~ to our protection. 

In vie\7 of this situRtiOi1 losses sustained in the 

fall CP..nnot be ·counter-balanced as heretofo e by 

urofits on snring business , which is further evidence 

of th~ need of a lo ·!er nFt.ge scale for our industry, 

nhich would not '~Ork a hardshiu on our emplo~rees in 

view of t he lower cost of living in the south. 

( e) TheTe are man? exuenses , including taiCes , licenses, 

rent, po-er , light and hePt , "hich a~e common to all 

industrial concerns i n its locality; and yet the 

Virg inia Art Goods Studios, Incoruorated , is required 

under the Code for its I 'tdus tr;r , to nay , higher 

minimum "P.Jage than any othe r industry in its locality, 

even under the resuective Codes for such other 

industries, thus placing· said Comun.ny at a marked 

dis~dvantc>~e with such other local industrial concerns. 

6. There are very few·, ce r tainly not exceedin{': half a dozen 

concerns o:r estc>.blishments ene;P.ged in the manufacture of 

l ad ies' handbags in all the southern states. Those few 

are striving to develop the industry in their resuective 

territories and to provide ernplo~nent for l abo r now 

unemployed. But upless accorded a proper differential as 

to wages to be paid their er'luloyees , they wi ll be so 

seriously handicauped in thei'r efforts that they Pill not 

be able to maintain themse lve s on a fairly profita le basis , 

in COJ1peti tion With more fortur.ately situated cornpeti tors. 

7. It is ne cessa.:ry, in the business of the Virginia J..rt Goods 

Studios , Incoruorated , to er:roloy at Rll times a number of 

unskilled auurentices or l earners , who are inefficient and 

. not rofit ab ly productive during such ueriod of trainin , at 

this ~age scal e fixed by the Code. And this 1 aterially 

increa ses the dis advantage of its situation, as a competitor of conc erns ghich are not compelled to use such 

untrained l ab or to a like extent. 

8. This affi uav it is made fo r the puruose of filing he s~me 

'.Vith the Adflinistrator in sup·Jort of the uetition of he 

Virg inia Art Goods Studios, Inc oruo rated , pra~ring M ex ens ion of the period during 'Vhich it . ~' be exempted from he 

labor urovisions of the Code of 7~ir Competition for the 

Ladies' nnndbag Industry. 

9. A cop r of s a id uetition with its accoMna~ring documen s , has 

9811 
-466-

been for~Rrded to Code Authority, Ladies' Handbag Industry, 

347 Fi:Pth Avenue, lJe\7 York. 

/s.f Mamie E. Rohr 

Subscribed and sworn to oefore I!le this 25th dRy of Augus ~ 1934. 

.. iliTNESS my hand and Notarial seal. 

/s/ Emma D. Ambrose 

NotRry Public 

( SE.AL) Uy commission expires Sept. 4, 1934. 

STATE OF VIRGIN+A, 

To-;/i t: 

CITY OF LY CHBURG, 

I, O. H. Tufts, do h~reby mak~ the ' following affidavit: 

1. I am a C8rtified Public AccountHnt, residing and doing 

business in the Cit~r of Lynchburg, Va. 

. . 

2. I audited. the books of the Virg inia Art Goods Studios, Incor·9orP.ted, covering its operations for 1933. 

3. I have read the affidayi t of MP.mie E. Rohr mp.de to be filed 

in support of petition of s~id Corporation for an extension 

of the period of exempt ion from the l qbor provisions of the 

Code adopted for its industry, and ve checked the figures 

therein set forth for operatio~s during a portion of 

September, 1933, and August, 1.934. I find them in agreement 

with t.he cost record kept. Hy Rudit for 1933 shows actual 

cost sliGhtly in excess of cost records. The $11,000.00 

loss on its business during the fall of 1933 is correct and 

in agreement with ITrJ audit re,)ort. 

SEAL 

/s/ 0. 'H. Tufts 

Subscribed and sworn to before :!'ae this 25th day of August, 1934. 

\Vi tness my hand and notarial seal. 

/s/ Emma D. Ambrose 

Notary Public 

My cO!l1!1ission expires Sept. 4, 1934 

STATE OF vr GINIA, 

To-.ii t: 

CITY OF LYNCHB\]RG, 

I Edmund vvaltuck, do hereby make affidavit as follows: 

9811 
1. I have h ad many years of expe r ience as designer , 

superintendent of l abor , c:lld n·.~oduc ion ::lannger , in 

f a ctorie s engaged. i n t e manuf..-..ct re of ladies ' hand f\bS , 

in northe rn sta t es ; and n.P1 now Production lAc:>nager for 

Virg inia Art Goods St u dios , I ncornorated, a t its f; ctory 

in Lynchburg , Va. 

2. In the northe rn s t ates , where tle l adies ' handb~g 

industrJ~ ha s been e st abl ishe d for many ·rec-rs, there is 

at a ll times a n r:tvai l a.b l e surml.r of skilled la or suitable to the needs of t he sever pl manufacturers. 

3. In Virg inia t he re is n o such re~dy sup~ J o: skilled labor , 

nnd in the Lynchbur g f r:tctory of the Virginia Art Goods 

Studios there i s always need for a numbe r or' le,.rners in 

tra ining who :::.re no t probi ta.ol e nroduc e rs d.uring t eir 

period ~f training , which i s usually about eig~t or ten 

weeks. 

4. The available l abor in Virg inia , even aft er t r a.inin · , is 

not able to turn out the s ame volume of urod1ction per c~pi a 

of employee s c:>.s the same tY:Je of ·1'"1bo r in no: t -~ rn fqc ories. 

This is due to t empc r ment?.l, r ae i a l , '1d cor1muni t~r it ferences , 

which a re like ly to continue to exis , or '"rnn~' reflr • 

5. Te sts the.t I have mP.de i n the L•rnchourt; f~ctory discl os 

tha t the volume of nroduction by tl e regular emplo,/ ees 

available i$ onl y about 70~ Oi tlnt secur ed in northern 

f a ctori e s under simil a r conditions. 

Is I Edtr1und ·,;.,1 uck 

Sub scribe d a nd si'Torn to before me Llis 25th d of 

August, 1934. 

fi TNESS MY H.A1ID ANTI NOTARIAL SE.All. 

(SEAL) 

l'av 11 , 19 4 

Miss Mami e E. Roh r, President , 

The Virg inia Art Goods Studios , I~c ., 

1306 Church Stree t, 

Ly~chbur , Va . 

Dear Miss Rohr : 

In re ly e r o Division 5 . 

I have ' b een studying the il ~s or co:~ es oL erc e on yo, r ap olica- . t e Code of Fair Co cti ion tion for an exempt ion and mod.ific · tJ.on o 

for the Im.dies Handba g I ndus try· 

9811 
As you R.re FJ'.:ra:te., a HeRring wr s held on a number of other 

applications for 'exemn tion Hn.,y 7, ett .,.,_,hich time :1our petitions and 

correspond.ence ··ten~ ~ead into the records. Before making any finai 

decision, ho•:rever ," ' it will be necessRry for us to have much moTe a~d 

complete informr-1-tion on y our ueculiar problen s tha n '.:re now have. I 

should a:ourec i a te your submitting to Ple ~- s ouickly. as uossible, the 

following data: : ., 

(1) The n.molmt of business done in the year 1933 in bags made of 

leather; 

(2) The amount of business (l one in 1933 in bag s made of imitation 

leather; 

(3) The amount of busine·ss done i~ the year 1933 in bags mc>.de of 

fabrics n.nd other ~aterials; 

(4) Do the same worke rs work on 11.ll three types of bags? 

(5) How many workers we re employEld in the ueak of your season in 

1933? 

real 

(6) · How many were emp loyed durinb 1~ lowest uoint of ~r our season in 

1933? 

(7) On what b:.1.sis are your V!Orkers coml')ensated? (I.E., piece work, 

hour '/!u rk, or week nork) 

(8) Classify your en lo~re s according to o·oere.tion :oerformed, ~tating 

hourly coMpensation of each. 

(9) In nhich price range s are y our g oods sold? 

(10) Since the adoption of the Code , has there b e en any change in 

these p rice r anges? If so, what ? 

( 11) \/hat percentage of the wholesale :price of your products is 

represented' by direct labor costs? 

(12) What percentag e of y our wholesale price is re~resented by selling 

costs? 

(13) \fhat uercentage of your wholes a le urice is represented by . 

administra tive a~d gen e ral ove rheRd costs? 

(14) WhA.t are your regular chfu~nel s of distribution, (i~e., w.holesale, 

direct sRles to retailers, etc., etc.) 

(15) Do y our products enjoy A. nationP..l-wide distribution? · If not, in 

which aren.s do you make your bi ::~ gest sales? 

(16) Give me the names and addresses of your most direct com~etitors. 

Upon :eceiut of the aoove infor.mation, I shall be in a much better 

position to judge your case. 

Ve ry trul._r yours, 
- -169-

NATIO:,AL RECOVERY ADHL. IS'IRATIOlT 

hshin~,ton , :J. C. 

MEIAORA~mUM , 1L'1a 1 , 1934 

To: Miss Robinson 

From: Mr. Fa rnsTiorth 

Subject: VirEinia Art Joods Studio, Inc . 

The Virg inia Art Studios filed ~ith the AQ~inistrAtion a petition 

for exemption from c e r tain p"Lovisions of the L::tdies Hand"eg CodP. 

pursuant to the terms of the Exacutive Or~er of July 1 , TL1Cse peonlc , 

I understand, had one or more cvnf3!'6 1ces -:-ith 11r. Rosonbla t , wit 1 

the result that Hr. Rosenblatt i:1fan ed them th"l.t it ''TOUld be unnecessRry 

for them to apnear a t t ' e Public He.:-.ring , and that the filine of 

briefs would be sufficient. 

The Hearing was held on a numb e r of other similar petitions o 

May 7, and at tha t time tne briefs f iled - v his concern · ·e e entered 

" into the recorQ. T1 ese ·:J r ie:::r- cant· inec rrucn n<> cesS"'L',/ in:'or:n..., ion , 

but most of it '.'T::tS of a mo.,..e or le ss gena~~al sort . J3efore rende ring 

a final decision on the matte r , ce tPin oth~ r information ~a s n itR 

necessary. If the petitioner h~ d been nr') se ~l t .t the . earinc , his 

information could have been elicited by dire ct uestionin·-. Si:1ce 

this is not the cp se , it '7P s necess::>ry to secure it r cor res )On::..ei ce . 

Att ached herewith is a copy of the l etter , dated i..::!: 11 , sen 

to this finn r eques tin~ furt he r i nforma ion. To date '10 "'Ck'io•.vled , ... en 

o: this has been rece ived. 

I unders.trmd thr t these "I'Je01Jle obj c~ to t h is aurJs ivnTlaira OJ 

the g round that it '.>'au ld eClui:·e ~ t'"'O ee}:s in·rr- sti ation b, a 

certified nublic C'.c count an . A stu~y a:- t}·,e e nuest io'1c , I thi:lk , ·~ill 

show th~t this is not entirely ti£ ~asc . It is s ·ficie t to ansJnr 

the first three questions by neans of au1J o-..:im8tio·1s. .,s ions 4 

through 10 certainly do not reaui• e th"3 "l.ssista:1ce of : n ac co n tan • 

A quick g lance at payroll records woul d be sufficient to "' ns•.r~.;r e ll of 

them. 

The most i mpo rtant ouestions are Jos. 11 , 12 , an 13; 

a fairl r exact a.'1s·-;re r is necessq,ry , and it is concei 'IP ole 

o:£' an accolliltant might be neces..,t".ry . ::as firr.1s , ho·r>vcr , 

figures in the o!·dinary course of 'lsincs:; rnana-ement . 

Q,uestions 14, 15 , and 16 , of course , ci.o not reaui e 

of an account ant. 

/s/ \ . P. """' • 

. :n. P • ~a rns•1ort 

9811 

:or he•;c 

n·. t r dv ices 

sLc re t ese 

~ as.., i , ncf's 
The Honorable Carter Glass 

Unit ed Sta te& Senate 

Washington, D. C. 

My dear Senator Gla ss: 

- 470-

June 12 , 1934 

I s end you he rewith copy of a l e tter dated May 11, addressed to 

Miss Mami e E. Rohr, Pre id nt . The Vi r g in i a Art Goods S~ldios, Inc., 

1306 Church Stre et, Lynchburg p Virg i n i a , pe titioners for exemption of 

the provisions of t he Ladies Handbag Manufacturing Code. I also s end 

you a summar y of the sta tus of t his petition. 

•As I am very anxious to do whr:~ te r I C,':l.n f or Miss Rohr, could 

you assist me in having the ue titi oneTs submit t he inf ormation r equested 

so tha t the pe tition, if nted, ;. i l l be ba sed UPOn f a cts in our 

posse ssion, and in accordance I'Ti t h Admin_i st ration requireP.lents. 

(signed) 

Sincerely , 

SOL Ac :::C SE LA T 

Div i sion dmini tr tor 

CO:UE AUTHORITY 

LAD IES' HA If. J3 G r mUSTRY 

347 Fi f th Avenue 

July 3, 1934 

Mr. David Barr· 

Assist ant Deputy AdP.l inistra tor 

· Department of Comme rce Building 

Washington, D. C. 

Dear Mr. Barr: 

We ar e in r eceipt of your tt r of Jt.me 29 , 1934 in reference 

to t he Virg inia Art Goods Studios. The records of t hi s case in the 

Admi nistra ti0n f iles snould show t he f ol lowing : 

This firm di d make apulic?. tion to t he -Administration for excePtion 

t o t he Code within t he te n days fol l owir..g ap·o roveJ of t he Code. However, it wa s ur oved th2.t t hi s :firm ry;=-_s a member of the Associ a t ed 

Handbag I ndustriGls at the ti:ne t he Code w~ s P.puroved , and since the 

Associ a ted Handbag 1ndl&.strie s of ArnPrica ··ras t he s:oonsor of the Code, 

t he Vi r g i n i a Art Goods St u di os "ler e ass entors t o t he Coda. 

In vie•v of t his i nforna t i o:'l furnis:1ed by t he Code Autnori t y , the 

Virginia Art Goods Studios we r e no tifi ed that t hey ne re not entitled 

9811 
- 4 71-

to a h e aring . This i s the l af> t t ha .. t ·~ e h d f h . ear o t e case , and ~e 

therefore t ook it f or gr Pnt e d t hr t o oxccJtion to e Co'e h<s ~ 

be~n g r ant e d to t l i s firm. 

If y ou desire ou r fil e s f or t he rno~ e of :· sce r tqinin these f c s , 

we shall be ab le to supry l y b1em to ~ro . 

( Sir;ned) 

er y trul y yo r s , 

COJ_, A T30ti TY 

ADI~S I HA:."DB ~G ::OtJS'BY 

AM: AS 

HEAR 11m CALLijD 011 PETITIO ·, FOR 

EXB 1Pl' IO T 31 1I'.GI HA .l\RT STt.IDI OS 

TO · .. AGE PROVI SIO' , LA"JIES 1 ::JJ03AG 

COJ E , JULY 27 , 1934. 

Th e fo ll o~ing ne r e pre s ent : 

Lei h~ . Ore , Assist ant Deuu ty Adminis ~~or, cond1ctinT he 

hea ring 

Uiss Rohr , Vir g ini a Art St u di os 

Mr . Taylor , I ndus trial Adv i s or.r Bot.U d 

Miss Schne i de r ma n , Labo r -<"'.dviso •r :3ua .d 

David Barr , Assistant Deo1.ty Ad::-:ini .... trr-to r 

Harry S. :B err·r, DeT)u ~ Adr·!inistrator 

!1r . Mittenthal , Code Di r ector 

Ur . Be r k ory it z , Code Director 

Mr. Or e , op ening t he hea in~ , isked f0r a b ief s atcrnent of le 

ca se f r om Miss Roh r . 

MISS ROHR: We began '\IOr k inr• undEr the Presidl'3nt 1 s Re0 ol oyr'1cn 

Agr eement a t its inception and liveJ uu to it. In dcin · t!.r>t hi"' 

Virg inia Art Studios l ost $11, 000 in tne f1.ll . e make sli. cover 

bags , and i f it we r e no t fo r th:::o t r1e co ld 110t h·we s a;ve 1 in u ... i ne" • 

. I n the su ring we made eno -::-1 to s tana. t~.e loss. ·r s L, te ·. an t3 • to 

go out of business in t he f all , but ~e cold not dot· ~e 1se to 

m~y p eople 1'1e r e dene nden t on u s for ·or k . ~ e •;~en t e e· d in s i e of 

the f a ct .we '"ere losing . ·.rhen t he !{. dbfi[ Code L.: S u) :or d · sc 1.3" ion 

in New York t he thi ng s '7e a re :l..ski nF-; fo r e:·ermtion on nre just 7I·"'~ ' s 

discus sed and nc=tssed on . Af t er t •" t , the Cole ··.1 s ch n "Cd. •i ho t our 

knowing it. \Then i t .as forT'lFtl r uassed tr1e nin.i.mur. v·a ·c w. s raise i and 

the a~ rentice period left out . 

hiR. ORE : Hr. JH t t enthc=t l , do : ou l .ve an;v kno· led.ee on recor d Hhich 

9811 
-472-

would show whether or not t he notice of the uublic hearing on the 

Ladies' Handbag Code Pas sent to the Virg inia Art S~udios'? 

MR . r.II TTE:HTHAL : Eve ry k r10wn memb er of th~ industry was notified. 

r,m. ORS : You know of the pub lic hea ring '? 

MISS ROHR: Yes, and I did not ap!Jear but wrote to l>.'Ir . Glass and 

filed a petitron. 

HR. B.ARR: On the ba sis of that· evidence, the petitioner is not 

entitled to an exemption under the July 15 order. They participated in 

the ~riting of the . Code . 

HISS ROHR: But the Code ·.I p a rticiuated in I was T1Jilline; to live 

up to . I know nothing about t he othe r one . 

i'IR. ] A '!:ffi: The indus try ag ree d to submit c:; cert P-in Code . \lhen it 

came to nublic he e1. ril~g the auoroved code 1:'!R S t h e s ane . 

11HSS ROHR: i{e had no s outhern renresenta tive . 

Lm. ORE: I think we ca n '.7aive that uossible technicality. Do 

y ou belo ~g to the Association? . 

l.HSS ROHR: lie did not nan t to. bE;')long to the La dies 1 Handbag 

Associc>vtion. 

HR. ORE: She di d not assent to the code of 35¢ an hour -out 30~ 

an hour. 

l>'1ISS ROHR: And a s the code wn s presented to us there was an 

apprentice clrnse . 

HR. 1.1ITTElJIJ.'HA.:W: At the mee ting of the Association there was a 

proposal fo r an apprentice clause rrhich did not becon e ['.. ua rt of the 

Code . The r c:t te of 30¢ an hou:::- a t thR.t time was op-posed by the Labor 

Board as being inadequate , C: nd it was ma de 35¢ an hour for all sections 

of the .country c.n d. it ' .'as apuroved. 

},ffi. ORE : \;ill you state y our viewuoint for the be~efit ·of the 

record-- your attitud.e in relP..tion to this ex emp tion'? 

. . MR. III TT:SNTHAL: It is my unde rsta n6.i ng t hat !·!iss Rohr ha d received 

a letter from t he :Deuuty Adru ini stra tor . . . nd that she the reunon paid a 

visit to De·outy Adrainistr:ttor :S:o'Yf1.rd. I.I iss Rohr r-tgain visited the 

office and R.f ter t nat·visit s~ d s he had not received any satisfR.ction • 

. HISS RO!{g,: The first· letter stn ted ,...e v:ould be g i ven C'l, h earing. 

Then Tie ha d P. l e tte r of :::-e fus a l s::lyi no· "T e did not participate. That 

letter was not a n sryered. 

lffi . MrrrrlElJ'rHAL: The Code Au tho.~. i t v acted u u on the ueti tion after " - a thorough study of it and the conditions surroun C.. in~ the t particular 

fR.ctory . They voted the problem of the Virg inia Art Studios rvas no 

9811 
different than thr>.t of p e rhans 100 other fir ns loca t ed outsiie of 

Neu York ope rat ine; unde r t~1e sa .e or s i1:1il, r con:ii t ions , [lnd thnrpfor e 

r efused the ~etition . 

MISS ROlffi: I V?.s not notified. 

MR . MI TTEHTRA.L: That was sent to the A~inistra or. It ,,s nen 

our unde r standing t he Ad~inistratio~ ~e ld ~ herring in Tinic. t!.e c~se of 

the Vir g i nia Ar t Studios was one of the cases to · e l e'"'::.~d . A7- t '1 is 

hear ing the 1Tirg inia Art Studios did no t U'.lt in an a-one: ranee . 

........ MISS ROlffi: Mr . rlOTiard ?nd Mr . Rosenb l att old. us ·-·e did not need 

to c ome . I was sorry the. did no t g ive us ~he benefi of comtng . l~ 

sister and I c aJ1.e a fe , days before but 1;:e could ! at sec '. r . Howard. 

COLONEL :BERRY : I u..J.derst nd an exerrotion is of only a emnorfl.r, 

natu re . I f conditions R::'e suc h ?.s to '"'arr""nt c, ue-mn.nent e:-:emntion 

ther e nill be an amendment tc the code . A':l,_v -o:--rt~r c n..1 file nn amendment . 

I think you should fo llow thrt method. It is ~y und~rs andin~ from a 

t a l k with the Div ision Administ r :=ttion the t :ru nolic~ ,....auld reouire a 

4 ¢ minimum '.7e.ge and. a 40 hour ':~eek . ie have th:- t in t "1c i.e t! er Co e . 

r:e are going to ta>::: e thP.t u:o ni th t he other co _es in L.is sect ion. 

MI SS CHHEIJEFjfJ.AN: I nstead of 30 . and 3:=) it nill Je 40 ? 

COLONEL ERRl\G: Yo s . I n l e:; t i e r , :Bo ..:' t ::tnd. S!1oe , S .,O..d.lery r nd 

Lugg.a g e . Th.q,t is ::ts f n.r ::-ts I l·G10rv. I d.v at think ':.his lady can exoec t 

to t;et a pe r manent exei'l-o tion ana. t !l<:.t is t e only lcin ~ t < t rould f ive 

any relief. Hy sugg estion i s to brlnG uu mendnents to his code, 

·;hich i s he r pri rilege. The urOlle r co 1rs13 is to ·orouose these amendments and b r ing t h em out for d.iscussion. 

' MI SS ROHR: I t is not our uolic to nnrler )a/ our neople . They_ 

f eel sure we R.r e ain,~ to t:;ive tr!em rll -qe can. All rw '7etnt is to make 

a fair ~refit a ni g ive the r est b nck to o~r e-ulovees. 

COLONEL :BEir.W: That is e··oni the u:.uvince of ::iilA. 

MR. OF.E : met Colonel 3~ rrJ srns is true . 3''t · ·c ':"JUst s ~nit 

all evidenc e to suo-oort t h is netition '!or eith"'r c>.:onrovn.l c deni 1 Y 

the Division dministr tor . 

COLO:l\r!;'L -nEn'~Y • ,,r_1,"'t ""'e-riod o: ti .c do vou '·an 7 l.~ i!.t .D .;:L_ , • u • 

MISS ROHR: \!e psked for an r->n·•, e:::tice ueriod frJm si · to ei ~· t 

weeks. 

• q_ t nil l t! ~t SP e Y"Uf 

HISS ROtm. : \ie t-lsked fo r SO~ o.:- t. e "lini.. L':l . 

COLOHEL BER'RY , '~' 0 ··c..-'' ov.r a 6 ·· eks : YO'l s~ re 7¢ .:m -OUT O:i." ..... . u ~ ...... 

per i od . ThP.t ·JOuld - e less tr ?.n Sl5 u~: t3r:roloyae . 1' .• ~ ,.,.. ' ld no e 

a mate r ial he l p . 

9811 
- 4 74.-

MISS ROHR : Vie ::1sk for 8. 30¢ minimum. 

MR . i•HTTfuJTF..AL: As r e fl e ctinc t r e a t ti t uclo of t he Co de Authority, 

in o rde r to iJEJ.Ss u•1 on t ne pe tition o f t he Virg iniE A1:t Stucli0s we wro te 

to t hem qu stin£ informa tion e.nd 8t a t ist ics of the ir ·ousinesr. a nd v:e 

fa ile d tc -r c c e ive any e~J . Vi3 e l s o rre r e t o l e. by the_Ad.mi ni str8.t i on 

t hey had !'equ est e d · c e rtain facts which i~ey 6.H1 ilo t ob t e.i :n . 

MISS · ROER: I t h i nJ: I a~1 ~ le ir~ tl 2 t . I ~'1f"ve B.l:ce<J_cy se.i d Vi'ha t 

t ap'9encd. VJ',:; 11P. t ed v e ry much t o c; ive t le f B. CtS Ol ou r 1Jnsiness out 'Th;3 re 

t hey would b e s een. We J:new t l1a. t co ~nm t~ e~ v-.rs-.s made U_J of co rrme titors 

and we cannot CoJ1Tl')c t e with tho ~ in ~Ievr Yo:..~ . Vie s ent t ··1at list of .questions to Mr. Glass a ncl askecl him i f :1e vwulc s ee Gen e r a l Johns on B.n<l. see 

what he· ·coul cl. do' for us L'l :~ce V.'ay o r 6 e ttin; e.n exem_J tion . Just -..:;h t 

!Vir. Glass dic1 I do n ot know, b"Llt I knovv he got L1 touch vJi'ch Cren e ral 

Jo hnson a nd be \'"!TOt e US 8. l e t te r say ing G- E:ne r:- 1 J oh.ns o·11 said it v78. S a ll 

rig ht for us to ~') roc eed as -.;o ···e r e . 

MR·. 018·: Gene r a l Jo l1J'. ~1 v•as h--.r:c.ll i nt; it il1 t :1e r egula r manne r of 

gre.n ting a stay . Evide:.l tl:r your -·)e ti ti o~"'.. v7<:>.s fJ.l Gc1. 1.'!i ~: t l1i s Adi-!1ini s t:cB.-

ti on vli 1in t ell day s e.ft e r ~Jn'ovB. l of the code . 

IHSS ROER: Tr.tB.t is not iiv'·12. t . Gle.ss v;:.. ot<J t:1at - l1e sai c: . 

lih.. OIDJ: Re.:;ec rdless o f t hB t t hs Co cl.e Au t ;_:o:cj_ty i s a·y""J roved by 

th <3 Gove rnment a nd it is not op tinnal with t h em. The fi 6ure s t hGy ob -

t a j_n :::. r a co ~lfi de tial a;.1d not t o be :" ivan to ot:1a r members of t he iHdus try • . · Ther.e two man a ct s Co d.e Di r e ctors , and I have -3 very reason 

to b eli e v e · t !1e ir wo rl-c i s ke·)t con f i chn tial. \h t l1out f a cts in the r e cord 

on which to ba.s e your -:J-:; ti tio-.1 fo:i: ~t e:;_) tio j::. tl ey :hac"\. :.1o t l i ng e lse to 

do but to s a y t he;'/ coul cl_ no t .:_, :c:::.11t you -c1.n eY:c e:> tion. You l:a v e been 

st2.yeO.. You 2.r e opara t L1_s u:.1de r a stay nov.r--I bcliGve a bi:t irregular, 

but t he Adrninis t-re. tor ro.s ooe;1 fit to ove rloo\: t :n.e t e c}mic£-.li ty and 

p e nni t you to opor~ t e unc.e r e. r. t a.y a~1cl y ou e.r J no :·r 1ay ng y our employe e s the mi n imum of $12 a 'r:-:;e:c. 

MISS ROHR: Ve r y· f ew of t he·cn ge t ~1.e. t littl e . 

It/IR . ORE: The hour p rovisj_o-1s are sati sfP.ctory. As Colonel :Be rry 

told you, 11 of t hese co das are to be r eo .. ,e~1ad o.nQ.. brought into line 

with t he ~Jo li ~y of t i1e Ad.'11i n i s trati o;:t !:>_t 40¢ an ~1our--t e SU(;[_'e sti on 

of the Labor Advis ory :Soa r d . I n o rder to Il.:=! i1cUe your ce s e: in the r egular manne r ve are g iving y ou t i1.is heari:.-1(; ancl t L.e I ndustri a l Advi ser 

and t lJ.e Labor Aclvi sel' are ) r escmt . It tt'a s no t n a c essary to bring in 

t he othe r boe l~L~S , but ,,,e ere g ivinr, :::-ll r e·Jrasentatives e. clnnce t o 

put the ir sta t ements into ~e r e co r d . 

COL L ]~-p-:Jv •• -,· 71 ~ - ' • d ? ~ ....... -u lv1 r . b2.rr, J.1.?.ve ~~o -l o.xp r essec•. :J'our 1 eas 

MR. :SA?.R: Uo . I rm ilO f fa; _ii li :..~ ,_,..i th ;-{our i clea O"lltlined. b e fore . 

I e.sl--e d fo r t 1w que sti o1mo.:...rs ent.1 ne e:c r e c eived it and I · hav e n o a ctual 

f e. cts UJon v:l:1i ch to base s.:a:' con"c l usi on . The f i:..·st I ::neH t h is 

pe titioner em)l oys as mar.:.i ::eo:•"' l e e.s they C:.o ·:?.s ?es tel'd.:::ty . I. t hoUf;ht it 

0~11 
- 4 75-

sr.1all conce rn with::-.. limi t e d \H oducti')n ::l.i1c' if t :-.. · orl; ·· r-

!a ge s of the vB.st ;·a?j o r i t: of th..: ir sr.12.ll - •'.L ~ o: '3 _) lo yo~ s ::- n 

.. i k e o the r :9 e ti tions ,,-:, ,, :ce c e ivad . But I :fo,_uJ.O. to.-.Ey ~ .y cr.r•1loy ov .r 

.60 people . 

MISS ROHR: Not e.ll of t h3 y ee.r . J uf:' t in c~ S )ri n...; \·. :r..c11 · c m~.:e 

3l ip cove rs and that is not hanclb :1g wo l~ . 

MR. BAW: Fror.'l my C};:;_J e ri "nce 'iith J. r .-1vi~: • ... o: . L ,~ s ry 

Lt i ·s conside r ed .a lart:, e r.1ernb e r o f t l e i: C'.u~, ;:,- . TJ· .. _; ir r ro ss is o v r 

~250, 000 a year. In t h e :9 ~-~-= tJ. ey em lo.t Rb cu t l 0 £1.)1 0. in t :" o ff 

;;eason about -80 , and v e ry f ori o f t he ec.:'~ yr;c s [.Gt . ':L' .. 1 .:r· :iv"v ~ ~n 

)ffice in Ne,-v Yor~~ e.:'lcl s e ll n~~ '-'· :: ::.~l: i r. r: __. '!T)._. titi ~. :·it .. o t:"c : ....... u -

:acture rs. I do not s ee ?ny .1~ ri t i n t'11e 0·J ti t i c1 , ·n:>.t ·:iss ~o r ...-:>.s 

1ot finisn.ed her t estir:tony and o t ilc r f ::> cts !.:?.y b e 1 i.'..)u-L_:1t ot...t . 

COLON::ili :B ~RT,Y: For ¥7lw.t ·)e riod di d sh J e sk v::en- tion? 

MR . 3A..-=t~~: Just und--- r t hG 3 xJ cu tiv3 Ord0 r. 

COLOEZL :BE:.:t..-q _ _y: Is t hE: ,:- nor1 in f~ rcc ? 

MR. BARR: Tha t is corre ct. ·~ e -?.. r e holdL1 thi s ·0::: ... in2,; ~·o r 

t he u r1xo ose of t ermina ting t l1i s sta y . 

MR. 0~ : I thin:c Mr . T2 ;ylor 112 s g_ st e.ternen t . 

MR. TAYLOR: The Ind:u.s t :;:ia l AC.v isor y Bo?.r cl ~ "'· S 'J c li ev <Jd fro;:~ t .. . .:: 

begi m1ing in such diff e r cn ti e.l s i n ma.ny indu e- t r i 3 S t o t:-; 0 ~ r .., of 

certain si b1a ti ons t h8. t !'l.ri se . Vi eLi.- r tru .._,oP.rd ·oul cl te o t .. -2 t 

positi on on thi s ce.se o r no t I ~m not sur e . I t l-.ink v;: e s:1oul d hn.v () 

furthe r dev e lo-ornen t of t i1e f e.. cts , ~'P. rti L.:l ? rl;y t 110 r,.:; I" c ts .--;. · ch 

might indic1.te t h i s cJ..ass is l ess eff ic i.. t o r 7"') ro c'.1.cti v <J t}Pil labor 

in New York. 

-MR . BAR3.: The si t w .ti on : 0r e i s t :1i s . :Ihil" t ;·,,, in(' 1.1 ctr· i s 

common in Ua-:-r York , it is no .' 20:; of it i n small r·i ti .... s 2 Y~c1. :· ., Yor:c. 

The availability of wo r:ce rs is e..b ou t the "" .. :13 i n >· n, inr': ... ~, tri ·l cent . r . 

Most of these ,-nanufe..ctur e r s ?: r o i Yt Sr1B.ll t 0 ns O\l.tsi ~. 3 of ] e·:· or¥-, in 

Roche ste r, Nev1 J e rs ey sm?.ll to ·.n1 s, a.nd Son·w c t i c ot i n ,.,11i C11 t"~J Y :.~·-.r e 

to r e ly UlJOn fairl y uns ci d or ;: rs in ~J.C be..., innil '"' so tr _:-c i s 

no thi ng pa.rti cularly uncommon o.:b out Virc; i ni::l . .. rt Stu~l ion . 

VIR BAIG: Th e wa.s qu ~ eo 'Jut it . AlJo t ~ v .)l::.: or t .: c'..,~ s 

ago this matt e r ce.me up eg n, 2.n d. I vms c:i:i: :. c t c cl to cl J.·::.vr u•"J Pn orJ. r 

grant1ng a :oetition. Vlh ile t his v:B.S i ·1 ~ .. J •w:t·:cir.; Colonel Lr:,c!1 c--. 11 d 

me i n and t hen Mr . Ore CB.lled t: is mor- in,:; . 

COLONEL ]3Ri:l.Y : The s e gen tL;men ? ~ c_;o1 ·.1.J t o ·)r C os "' your !·lei r.1 .)n . 

When will you be able to ge t £ n to,::; t l s r ? 

Will . MI TTEl·lT=-IAL: The ne xt rnee t i:.1E:, of t l e Coc'n AY1.tJ.1o:ri t ·r is ,_:u.rsday . We hav e B. mee ting ev e ry t no 7e ::::::s. 

9811 
- 476-

COLQN:i!jL BERRY: Vic will :1a.ve to hava a .lea.rint:,; 011 thc;se ame1 cl::1ents 

before t he end of August. The L-::J bo1~ Advisor~' :Soe.rd 'nill J.w.v e sor:1e EJ!lendmen ts. Do you s ee any obj e ctions to :9exmi tti::g t h is o1.·der to .;;o into 

effect a.nd r emain i n effe ct until t~1e f irst -of' S::.n t embc r, l)rovided t he 

petitione r desire s to p r esent e.i.l e.mencl_·netJ.t t o the co0e Lwolved to. ge t 

a diffe r ential? 

MR. ORE: In t he.t connection , C. lo l ·:1c~1. s2.id to l10ld a hee.ri!1g 

and act ~)on t he stB.y. She ~1.as not 2. ior!ila l ;··a ti ti r__. n for e.n exem:·1tioH 

b e fore the Administrator novr. Sh i s o·Y~re in5 1..~1d r B. sta.y. The Ad.!lLlistra.t(')r vras·. of ·t:L1e same mind that ~1e e nere on}$' a f ev1 ~1e ·· )le i nvolv-; d. 

Afte r the ca se has been s e ttled on its merit or at an~r time , .any int 2.rested :9arty has a ri6llt to file a l-;e ti tion for amendr.1ent to t~1e Code -with 

the Ccide Authority. · ~v en t:10ut;h t ho Co de A-c:tt b.orit" may deny it, they 

are duty bound to tur11 it ove r to t he Administration. 

COLONEL BZ:tffiY: If the cliffer::mtie.l question is vite.l to t '.is, 

the re would be no object ion to ·:;!a.l;:in::; :.8. )e ti tio:1 to 1e Administration 

that this stay not be in i until e!? eube ::.~ l. 

11/J.R. TAYLOR: Te rrnin-::.te the stay r->nd i:;re.n t a 6 :-:eeks tem:qorary 

exemption. 

MR. BARR: If the stay is t ermina t ed as· t he l~ sul t of this hea.ring and the exerrr~1 tion gr nt d und .Jr t he -order of J"L1.l y 15 , it should be 

extended t'1 t hose simi l a.rl y situ-a t ed. 

COLONEL B3BRY : We do not kt101.'J y ot the si t u.a tior1 fo r ea ch nenb er 

of the industry woulc.1 have to fil e 2.11 inc ivid:u£:>.1 l)eti tion . 

MR. MI TTENTHAL: The Virg i ni e Art Studios· is one of t :.e most 

highly regarded firms in t he :ndu str~~ . Their ousil:.e ss t a.ctics B.re of 

the vorJ t.ighe st, n.ncl :ny .in ~ t l12.t l·,iiss 3ohr s ays v1 i t h )ect to this 

case is exactly as she ste.t e s. Tl:.e :·7rooll3rn: t na t ·is· :~ se 1te . to t!:e 

industry because of the ~osi tio~1 t ;.:cm1 by t he Vi Tc;L:.iE>. Art Stnclios is 

one of g rave moment to t he i:1dustry. As it h?.s 0eel st-?ted here , she 

is comye tine; \7i th mam.l..facture rs h 1 othe r ~)a rt s of ~1e coun try e.nd i1 

HeYv Yor~: and is able to mainta in a ,:;ood volUit1e of business anC:. I understand · the firm is one of e1.e best rated firms i :a t:1e i11C.us trv. The 

Code Authori ~· is vcrJ much i ::.1 t e1·e sted end con c e rned in t:1e outcome of 

this case . We have had pe titions from firms as far s out h e.s f.O: iami, 

Florida, ancl there 1Ne re no exem_) tions g r ant ed in any- of t he othe r case s 

that have come o efore the Code Aut 1ority . 

lv'J.R . :BAP.R: You mean t he Code Au t l1ori ty ha s neve r r e commende d e.ny. 

IVJ.R . MITTEi:JTH.AL: Yes. I t~1ir.1l~ some e ;)0 le:1::. tion is due t he CoG.e 

Authority as to VJhy the Virr;inia A:tt Stuc ios ho s oee:n op e r::t tint; unde ra 

stay without any lG.1ovJl edge of t l1e Cod;:; ~:.ori t r . It w a$ our Ul1da rsta.ncling t he.t failure to a~1:pee r at t ho ~1e~. l.~in -; was a t that time . 

We r e c e ived no notice of it. 1i7e r e c e ived. a letter from t he Virt;il1ia Art 

Studif)S t hey would use l abe ls o f tha Co de Authority -) rovi c~c d the Code 

9811 
- .. ~77

Aut ority di<l ae;rec to t::a -,~::_,; sc~l"' c: · r•. t fort . . ce l1 s ~ c! 

the e:')~r3:1tice cl :.ue~ "Q"'l.,:;.er •:!". c~ r;e: e o 1e . < ti..t..: . . e 0o e J.. tJ o. 1 

denied t"ha t r eg_· es -~ a:nc. a l8t e r ·~as ·. it ~.c:: to ~e ' i rt....i:1i::1 A. t 

Stud.ios stated tne :?O ition o: tn~ co·~ .h.Ut.or"t./ ~.!1C: c.:.te' t nern for 

non- coll'!]liar-ce on fa.cts i·: ·air ::.et ...:r e. ,: st:o.t_a r sti ti oJ ·.oilld 

be r equired from r.rc'1 20 , :- nd · ·1til res ti t·,::t.:.oL · t?.. • ..., e nc 1:--.b ~1 s 

v10uld be issued. VIe received ~~o re·JlJ to tnat l e t e·' ··:titte .. on 

July 5 . /flat2ver is done i:1 tf1is c~sc, I 2-r . .:. •• _~ ~ti..,l. :-'ivc ' .ll!:tir C. 

:na.::-mfactur e rs are iY:volved. A fe-: 11 ·.drcd r:.ro 1i ::>lly i.:t ~ 

t i:e outcome , a;,1d natever is d')ne r u.st be 0113 in co 1s · r tioJ. of 

500 man'..lfe.cturers ·.~ o ar-s O)er1. ti·1; ·.me er tr1e co c.~ . 

/ISS SCDTZI Zrt!.:.All : m: e ILbor Advisor .. 3o3.rd is ory•oscu to r>ny 

kind of territorial differential. :~ot votL.~ a.~::. ir:st t'• ~ Cotton 

Textile differential t'.c.t vas :·~nt ·d in t. · first coCle, •,.; r~£l lize 

a s a bad precedent to s e t . Ho •e er, t:"' e:-..c'..ls ~ th<J Cotton 

extile differential 7as tr..e.t t . e e aJ.···'lys t.lXis ed a d.ifierertiAl 

b eh·oe· the South e:.nd :·o rt:n e.n ·. t: ey v·cre Jrovidi:lE, 11ousi:: · co1.di tio·1s 

at so low a ate t '.a.t it almost r..ade l..': j for t. e differ-r..tial in tl~ 

code . Since Lat time it seems ti:le.t an.: code t .. t :.es no diffcr::mtial comes to tl c ··Joint ~.1Jre; i:e so"J.t .. ?rn r.12n·11fn.ctu ars ~s-z for it. 

e minimum r ate i s the minimu..:! fo t~ .. e lo•;;e£t ty1e of er:- lo r.:~nt , 

and in the fe.cto ries ir.. ti:e :!ort' 8. verJ s:-:A.ll '1~rcenta.:_e oi t11e 

orKers v:o rk on t! e minir.:u.ra. :t .e larger :!Jerc J 1 t8t_.c -? re a.bov.; t110 

minimum. Pocke t book r:.a"kins is 8. skilled. i:1c.ustr; . I h2v · not 'k:notm 

about t h is case until I o:t.t:.)r3d your office, I.:r. Or'J . so tnat I i1av" 

no way of lmov1ing the n·omber of "ori.:::;rs. I n !"!. 'f'?."J I ti1ink t o ., ole 

thing has been handled irr ... t;"Ul :- rl:'• -:·1·s or ~niza.tion nas t.::-·· .. e:n 

U:!Jon itse lf to have a·.-nrcntic..;s •.7: en no one t.lse i t e inc...ustry 

was allo 7Cd a·rnrentice;s. 

HSS ROHR: ':Je have no a ·T)rentic s . 'ile noryP- to i'tave thorn ;:~nd 

need t i1.om. 

·rn. . ORZ: All '.7e car. do i(" to :-;-:t t..:; "1) lic;:~rt s r t :t e!" .... t ;:~s 

to hy this s: ould be g r anted , e:tC. t:.a re)i''"' '"'t.mta-':i \~ o:· t : L Cere 

ku.thori ty, I ndLlstrial and abor Ac.visor; 3o~ :-d. Sa~ll :-:: c tfl .... ~r :ccommenc8.tions .as to .:nether o. not it sh8.11 u E.: br.s.:'lte •. r f:nfll 

de cision is u•; t o :n~ D"vision A.dministre.tc..~ . o t i:-1. n ·~- .: tr1is 

petition to hlm '.7e vlill :~ur~lis:-~ : im •·i t: ti ..... .. i £,1 s·Jots of t o r ccord 

0f this nearing . I : :is" P.o~l!' ':?.5 an rt" ... i ;_, more to suy o .. :t i. or clf'lL. 

or if there are an'J other statemmts, I ·ro'.J.l'- li -'-' to !1~v e t. em. 

:ISS SC:-:::.CID3Ri.illl;: I do not s~: . o• .. ' you can t:ran a furthe r st-a: 

v.-i t ' out hel;;:>in6 t}.;.e otnar .12.nufactu.cers t • .c- t ~ re i tfl So-ut". a. d outlying distri_cts. I thL1~: this laC.y :C2.s cnjoyt.:d ~.n c;:ct:~ tion ' no o : r 

rr.anufacturers have . I t!: icl--~ it ~rossl? Ui.f:- i to t: ~ ot1 t;;r .. ::>nu.f;:~ ct·1.1re rs · 

ISS :rtOHrt: /mi l e '· e ?.r e :r.a.:in;:., our s?.m l·~s "'3 i'3v.:: 'ad no1 ody 

but our eX"Jerts ...,.,, 0 a r e well )aid so r10 re~11· 1 ~v~ not t.::>h~n dv- n 

until right no . • We have qui'te a nu:"b-3r of t .. <::~'1 b?.c:: !d so "" of t ..... r. 

get $12 bu t most get more . T. e ir..eff" cient ' 1a.ve not b(L n called b~c ~ e s 

yet . 

9811 
..:478-

MR . ORE: That is one r ea son why :va ca lled this hearing . He nant 

to s e ttle t h is case Rs -.-J rom."} tl· s ·Jossibl e b e c:,.-u:-:e k:iss Rohr is comL1t; ~ ·- c.. 

in to her pee.k season 110'17. 

MR. MITTElJTHAL: In view of what i ss :Floh r has said, I think it 

most imr ortant for her to ~ow just y,·here she ste.nds. · 

MISS ROHR: 'vYe have absolut e l y no desire to ha.ve any co nside ration over above o-the r peo'9le . We don t t ·want to b e in 9. position where 

we can make more money than othe r peop l e . We viant to SU:.fPl ly our ve ll le 

with work 2.nd. make c. f a ir profit. La st year in work ing 'Unde r the co ~e 

we had to borrow from t:O. ~ bank. VIe c.on!t vrant to rnr. ke demands on our 

bank. When we we r e first in business we made money . VIe raise d our 

peop l e . Then came the l ee.n year s 9.!1d '78 lost money a.::1.cl t he l ast 2 

or 3 yea rs if it h9.d not b een for our sli·} cove rs we :.. would he.ve been 

in the r ed ev e ry ·sine; l e ye:··.r. I c1o not cons::. de r we offe r unde sirable 

competition in the handbag industry. ~h8 New York stores \7on 1 t buJ 

our bag s. We have no marke t for our po cke tb ooks in Ne·N York b e cause 

vfe cannot ColTI]e t e vri t h t he; Hew York firms. Our peo}_Jl e do not work 

efficiently, and we 2.sk just as ittl ~ as we can ask to make a 

p rofit. 

MISS SC:ll\ ~IDER .'i.AN: 'vVhen you made .the statement 11 vmrk ine; u.nder 

the code l ast fall 11 you meant t l1e Pre sident 1s -Re ern::) loyment Agreemept. 

The r e was no code las t fall. 

MI S S ROili'l: . Yes • · We l o s t $11 , 0.00 • 

MISS OR3: You wanted t~ne code to r ee.d .30¢ instead of 35¢? 

MISS ROHR: Th2,t is vthat we t hous h t it Yie.s g oing to be, _and we 

paid that. 

COLOHEL B3:rffiY: How man~r Je lle e.re you noYJ )ayine; $12 to? 

MISS ROER: There :are 8 peop l e out of 51 om:9loyee s g e tting l e ss 

than $14. 

COLONEL BZRRY : The:ce is a qhcstio;1 w~1 he r t L.is stay should be 

•:erminat e d or whe the r it should be oxtenc.ed until Yle can have a hearint; 

~n a t e rri to rial diffe r oEti2.l. Vl e ex::_J e c t to ;Jropose t he amendmen t ·v ro-

. viding for a t e rri to rial diff e r ential. We can 1 t t:, r ant a ner manent 

exemption. 

MR. TAYLO:: : 'vVhen does the f a ll s ee.son 'bag in? 

MISS ROHR: Right now. 

MISS SCHNEID3RM.Al\f : May I C.. .:cf.lw your attention to if v1ha t Colonel 

Be rry says is go ing to ha:>) en--if thi.s i nd1:stry is t:.,oing to 'be brought 

up to a higher mini mum of 40¢--ev en if she bets a t erritorial diffe r ential 

her rate pe r hour is g oing to b e h i e he r ~n it is riGht · no~. 

9811 
- 4 7 JCOLON ~L ..... :::;R?.._ : Yes, 2.:1cl for '1~r :.::o:.: 1eJ i tor~ too . I-. t _ • ot._ r 

code s t he r e i s e. ~¢ ch ffe r en V.e.l ' e t ,-. ~.3 _ :..le :::>n(. fem:~le --- ----.~ 

l

1

fil SS SC Hl3 D3.i..":~~ : I ··ill no t st~ .. 1n o~ !::>_ 'i ·: ,r.enti...,l :or -:or.~ 

if I have any t h inG to l .O :r;r it' t h i s c2se . 

·.m. BARR: I n the s 2.me ~)a:' oll t: ... c!'G "':.·.::;a· o t 20 out of ~1 

ge tting $18 and ove r , a nd 's ome a s ~1 a s $r·; <:~. 0. ~10 , .,r 4 ')'1 7-

a week . I t i nlc t his ~J a; oll sho :;s 2- f i ne a<-,a s 2 e . ':.i s :1;,rroll 

do e s no t p r e s ent a :;> icture l n 1.'ihi c i t om "oe R<:: l '. t::e ro a .1.1i 1i.. ,."71 "O -~:s 

a ha r dsh i p . 

MR . O!G : I f t hi s stay i s e:;. m' ."3ct ~'ou v i ll, of coUl'"'._. , ~ in0 ·.);-; 

t ne code ? 

!'I SS RO!-:R: We ' ll b8.vG t o . 

MR. OR::j : I t i s t he dut of t } e --e·rut :r t o t .,.,::e t~1o f"'cts E>s rubmitt ed he r e e.ncl Llcm submi t t l em to t:le Di vi si on cl: inist r:-1 t o1· · i t 1 

his r e commendation. You a r e ::~ ~- ti ~e; l111cbr :>.. stP.? un til tl .. .3 orde r 

come s c.e ci di r .. g thi s ca s e . ':Ie c'.o ~- ot PU t to t i e 'l': •• :ou. rsi .. Lss 

un t il t 11e stay · is t e rrnim:t aC. , ::::1,_-_ in 0i the· ::>.sc ~-ou ··· ' l l ':."' v t o co .)1~' 

with t he co de . T' e ro r ore , it Yiill ·bo ::1 0cesr::- rJ for b1:3 Coclc "' ~ut .. ori t· 

to is su e l ab e ls t o t:1e Vir:;i ni a rt St u.chos w •. 

iR. ORe: : I s sue t he h tbels t o :i s ? o:t· '· .... -.1c i t '.ill 'Le t:1J di ncr e tion of t ne Divi siol'l Ad.J-ni nistr q, t ol' o.s t o .. o·.-: _"" C',_ull '-'C t u1on th..; 

stay. I k now you vti l l i rnrnccl.i::. ~l cor )ly '. ·i L t~.c .ode ·;:l}cn "'n ~ i : 

t he stay is t e rmi·1e t 0d , an& I ·,_--o-LllC. sn_:es t',o.t ;'o·.1 ~)!'C).,rc yo ,_rs.Jlf 

for a r a ise in r1a be s , a nd. it YT ou l c.'. b :; -_.~ 1 to f i _).lr0 t : . ..,:, in :rour 

fort hcoming ma rchanG. i s e . 

rffi . lVii TT:3li1THAL: S:1all I co,.si '.e:~ t 1.: t .,n orC:.~:..· fr.):n :ron to i~F'U8 

t ne l e.be l. 

Ral . OR£ : Yes. 

COLOr 31 BERRY: I f you can su.s t,::>.L1 ''our se l f fo r ..., t.-rri torial 

diffe r enti a l, it vv ill b e o.e t ormL 0d on f 9. t . 

l'fi SS ROHR: We hava a ma:1 .-.'J o 1 :- s bad ~ . ...., c:-1 t c'. :::> l o .. .' 

who i s 2. t the he:J.d o f our ·o r ocluc t i on . r e S"lu. fl.0 1·oulcl. lh; 

a st2 t ement i n r ega rd t o t ne f~ iculties . 

\;::-")CI'iC'1CC 

la to : ..., ~c 

MR. ORE : Tney shoul d b e su'L.ni t t3c.'. t o t:. Corl ;.: .t .o it·. Do you 

wan t a diffe r entia l f o r women? 

iliSS ROHR : No. Our v1o:-nm . 1 "' t t : 

a women 1 s orga ni za tion . 

9811 
- 480-

MR . TAYLOR: Unde r t'1e co:1di tio ~1s y ou o1..1tlL1e of an increase in 

wage for the inc"tustnr, no ma t ter ho,- t his t urns out £, iss B.ohr will have 

to incree.se t ne $14 "- week worlunen, will she not? 

COLONZL ::S~RRY: My r e com.·aenC2.tion ·Hill be t 1:.e. t tJ.1is stay continue 

until t l1.e hearli18 i1.e:At mont J."l 'if!'leil ·s:1a '.:ill ~ e an o:Y1 ortuni ty of ·)resenting an. amondr.1ent for t e r :c ito rial di f fel·cmti?.l. If that is thro~m 

out -she _will hav e to ab i ce by t ;_ e co ce a s it no,_-' stands. 

MR. TAYLOR: She will e to iEcre:;>sc :1er ~age s v.ri t l1 in e. month 

from now a nyway . Since it o~1.l y me.l:es 2. few weaks c1iffe r eJ!Ce for only 

B worlanen, can wo ~'lot t emin£te the ste.y norr. You vlill he.ve to increase 

thos e few wor:Tie"i.1 aj:-..yvray. . 

rJlR. HTT~lTTHAL: Vihen t hey r acluce their force from 160 to 51 they 

ma intain t he key :p eo:9 l e and. the i rre.::;ul ar WS':i.·:.::e rs e.re not t go . 

ri!ISS ROiiR: We n ever have 160 "Y)eo-:Jl ,3 in t i1e fall. In __ th~ s·)ring 

t he work we CLO is not for t he most ~) 8.1.'t skill e d wor;c. The re is no reg.l 

·oo cketbook wor!c . We fold our cot ton founc.8. tio:1s on e. w. 1ine £.nd the 

outside cova rs e.r e s e,_-,e(l_ ) and. 1e om:broide r y ~; ut on b;r hand . I t is 

to make that sort of thL1g t ha t v1c erap loy so rJe.ny :)e . 

MR. :OARl:: i,'iiss nohr' s stiraon~r ~ga rdi nt; t 11e ne.ture of her work 

brings her furthe r e.YlB.y from line . She does ve r y little in the fe.ll. 

i.iR . (,i Pf!J:' ~iTTH.B.L: Mi ss 3.o 11r when she se.y s slin covor, refers to a 

sli··) cove ring a ladi e·s t hanc"b qt;. 

COLOlBL BERRY : A sug._, e stio·1 to ~1e Code A-u.thori ~r . Would it hel 1 

you any if ~~r e t e rminat ed ~1is stay a:ncl g r anted a11 e~:cm- tion for 30 days 

until t he first of Se·o t omoor? 

NiR . lv!ITT&JT:ti.A.L: Vle woul d 11av e to ha ve a ve ry goocl ree.son. 

MR. OTI: So far as brint; he r in com) lian ce to<iay, t l1a t would 

-.)rove to t ne industry sl1e is unde r t he code . Ti.1en if she g ive s u.s 

sufficient evi d.cnce a n exe~ ti n sl1.oulcl be g r e.n ted, 1..u1til e:n amedment can be beard i :a :9ublic hea ring , I t:1inlc t ha t vrould. he l l; y our 

situation and be agl~eeabl v to the h".bo:c •Aclvisory 3oarcl. We will recommend to t he Division Administrator this stay be temine.t ec . The 

burP,en of furnishing evidence whi ch vJoul d SU)port an exem:o tion for 

a limited time until ;you can furnish t he Code Authority v,ri th mA.teria l 

for an amendment to t he code will be on y ou. You \7ill b o unde r t 1e 

code until such time as you can "" ~ocur~ an exem~) tion o rde r . 

COLONEL BERRY: Would it satisf y t he Cocle Authority ~· )eople if you 

told t hem · t he ·stay v.ras autor.1e.tically by itse lf being e:1forced and vlill 

be t e rmina t e cl on Septemb e r 1?1 

9811 
- <bJ -

MR. l:ITT.l!.l·TT1iAL: 'tihR. t vmuld. b e ~1e ? c t i on of t.10 ot· .cr )ro )OS.::>l? 

COLOlJEL :B3:il::\Y: If i t is u r ant ed nov: , si.3 V'ould :;-.k'lV~..; to ;o unde r 

t he co de righ t av!ay . 

MISS SCI-1

Ji3 ID3? :J...!. I t h i :'L;.: I h.::~.ve my ·10 i nt of v i ·J' .' rn1.:be 0nti cl 

v;rong . Th i s l a ·'y has enjoya d a <i i ffercnt i:1l \".11ich no o~lv else in Lc 

industry ha.s had. . It s eems t o me t :c.i s ta~r ou,cLt to be t0r:"'in~tcC: , ..., 1d 

since it is only a qu e stion of 4 vil'eeke. e.nd ':ll.o··· t: ·::~ ...... : :il ... ·o '1...,1 , 

I dont t i1i nk it v.·oul d ll9. n:'l t l1e busi 1·3r;s of ~ ~ VLt:;L1i :::. . l't St\.: :ios 

c r Jup t o come unde r t ho code a nJ. ·corrrnly 1.IDtil t ':e!.c is f'. L'3Pri 6 · 

Aft e r t :1is st 'J. t e:J.en t by l.'i i ss Scl'r.:-=" i der r!'l , C:)lonol ,..~ rr· beg"n -?. 

discussi on about a mendi ng tl:1e co<le a11d sutrtit-.:t1.,i·1"" 8. 40~'· m' nL.rum 'lnd 

de l e ting s e ctions 2 a nd G of Ar ":. icl.J I V f t11e ·.rJrPnt .odo . ::c f:llso 

r eou os t e d t he Cocl e Aut hori t v to sGncl i:1 t :1cir am::::1drri0nts to th0 Co -~ ~ " . and Miss Rohr was ec~ to do t iw e.r.F~ t !· in~ . T:.i s dis :::u::: si cn r.s 

quit e l en0 t hy . Cor1ing b8.Ck to t ho qu0stion o'f PJ vXCPT tion fo t i'lli 

Virt;inia Art Studi os, Co l onol 3 c rqr '"'.s~o:o : 

COLONEL J3E:;t.P.Y: Wou l d t :1is b e s<> tisfe..ctor .,r? ':'orr .. i'Vl~ c t his 

stay J u ly 31 an(l_' E;r ::' nt you a:n e::Gffir') tion eff·J c ti C ;_l..l.._."t:.S t 1 ;_"o r t ho 

month of Au gu st 3) enC:.i nt;; a ho:>. ~t .: on?. •:t.·o·Josed r-.10: J.r:1<...:1t . 

rvrn.. HTT~ i:AL: Tha t SO'I..1:'1.ds r 09..SOi1ab l c . 

COLOUEL BERRY: I a1ll vdll inc; to 'o t !·ifl.t . 

MR. BARR: Th e se st aJs }1C.V0 to be t ·..! rmina t ed. ,• i t h or :i thout 

exemption. 

MR. TAYLOR: Do e s t ho Code Aut : .. o r i t y f':?ve nny 8m...:n-'; . ..:nts to 

:p rop os e ? 

MR. MITTSNTEAL: We shall 11f'.VG i f t :._.; PCCcn t t l is '""6J sottl(.;;-

ment and a lso on o t 11e r ma t t ers--on t ll.; co s t .. o rr.n.:lr> ,.., .d ):Ci cc c ro .r!Jint: 

MR. ORE: It i s g oi:..1e t o _be abno l u t o:!.;.r Lc c .. s;,!' l'Y fo.~.· ?.~ic::n Ro:1r t o 

furnish a ll da t a r equ cst Dd ·b;:.; t :·:.o Cod·; Aut:·lOl'i t y . 

MISS ROlffi : May I h8.ve t Jlat 0utl ine . I sen t it t o .. r . Gl,..,ss but 

I will be g l a.d to submit t he ma.t .rif'.l. 

MR. OID; : You can deal '17 it:l t he Code Au -~:oiit;:r on t1"t r'lJ.:.tt.:r . 

MR . B3RK.Q1:HTZ: Mi ss Roh r st a t rJs t L.:Jj .1<'"e 10t t..sed .. :n·r a 'l')r,ntic.s 

since Ma rch 26 . 

MISS ROHR~ I did r .. o t .. 

sey t r. .. a t . ,7e h!:!Vt; no t had £'1J •• for quite orr.c 

time. We raised t 11em to $12, t iw s e VIC d i e... T.£1Ve . 

MR. BA..'iR: h"iss Rol1:r vmu ld not b .:: . ~ 

r oq_\.11 reG. t o P·· r any b~c: p~y . 

9811 
-482-

MISS SCIDT:JJID::SJUviAJ:T: Are we g iving this l acly an exerrr·)tion before she 

turns in her statement? 

MR. ORE: No. 

MISS SC1-l1J:SID3ill!J.AN: I think the Deputy is ste.ting ~n exemption 

should be granted her. I do not think that is t he right ':!ay of doing it. 

Also, dp I unde rstand tha.t in that exe~1tion '.·re are :yermitting learners. 

MR. ORE: There are no 1prentices. Iiiss Rohr, will you follow 

the trade p ractice s of the Code ? 

MISS ROHR: Absolutely. 

MR. OR3: The hours? I! , 

MISS ROHR: Ab solutel;y. 

MR. ORE: You have not pa.id any co de as essment~ and you have not 

been :paying the wages, nor su:9plied the st2.tistics. 

MR. TAYLOR: The only e xem1:J tion Miss Rohr would hA.ve would be for 

a few employees at a wage rate belmr1 the minimum. 

MISS ROHR: I v10uld like yo· ... l ~eoy.JJ:e to s ee our .wat;es for the fall. 

If we could have a differential for the fall '-17e YTould not care about it 

for the SJ?ring. 

MR .. MITT:::!iNTHAL: A lo.ss of $11,000 is not much in our industry. 

There is no one in the industry who took those losse s who was getting 

an unus·Dally high se.lary or not justified by the ir business. When they 

came under the blanke t code they d.id not know what the difference was 

going to be in the ir labo1~ cost. They did not allow enough~ 'J'hey 

continued to sell at the s::J.me ·')ricP-s and the clifferences in thoir 

:payrolls created. that loss. The rel1airs on he.nclbe.6 s amounts to z;!, 

of the volume of the sales. 

MISS ROHR: We charge fsr all our r ·apairs. And we knew it was to 

our interest to {;O out of busine ss in the fall and manufa cture only in 

the spring, but we hEJve gone ahead v!i th :~?a tented orclers 1;ve kne'IJ7 we 

cou.ld ~ut out in the spring. We have nothing in tl1e spring bece.use 

after we orib ina te an idea we can eo ah....,ad n i th it. We want t.o stay 

uptil we can pay ba ck our bank loan so that we will be ablo to stay 

in busine ss. • 

•• " ' 

After instructing t he Code Authority to issue labels to the 

Virginia Art Studios, and after awain outlininG t he 0)lan to b e followed 

in this ca se, the hea1'ing was brought to a close by Mr. Ore. 

9811 
- -1:83-

'1. 

July 30 , 1034 

TO: George 1. Be rry , Division Awni istr~tor 

FROM: Harr.y S. Be rry, e~)uty Administra t or 

SUBJ3CT: Te r minati on ni Stay. 

By r eas on of t he fa ct t }-1.a_ t t ile Virgini.q, Art Stl.'.di0s , I c ., 

Lynchburg, Virginia, :prote sto<i tr a te:i:n s of t ' o L-·• c.. i~s ' :1a:1d ~" ode 

within t en days aft~r i t v;a s a~J:_") rovecl , ~·is co·H~e ~:l ms qutonatic~ ly. 

granted a stay £rom its 'Jrovisions i n ~. ccordance r;itil t e 3.:eC'.lti 

Orde r of July 15, 1933. 

Hearing was held in t his office a t Fhich time l.ar.1ic E. R')'ilr, 

Presiden t E:,nd Treasurer, ,_-?a s g i ve:1 t hG oppo ... tu:1i ty to nros8nt a.ll evidenc e t o substanti ate her cla i m i a· ~ furtl1e r stay from ti. ·) ovisions 

of the Ladi e s' Handbag Code . At t he }~e :trin~ t.1e I:-.. dustrial visnry 

Board was r e:_) r e sente d by Hr. T. R. Ta~rlor , t i.c 1:--bo ,.clv:: .... o:::· :bo::~. d 

by Miss Schne ide rman, t he Coc.o Dir.:; ctors I.cr . ,;i ttenthal ~nd ·:r . 

Berkowitz, ·Assistant Deputy Adm:.nistre.. tor b~ 3 . Ore g,nd Da id 

Barr, and my s e lf. The r c l ev:::mt fac ts pe rt ~ininc to t 110 c2.se n e 

attached. 

Aft e r ca r efully vi m~· ng .::> 11 t he facts , I r ;corrr .end. tJ.1e stay be 

t ermina ted forthwith in order t .1.a t th; Code Aut.hori ty rr..~· ?~dvise tLe 

industry t h is sta.y has b een a ct ' d u::'o:1 i n ~:e :cc_;-u.l a t·n.nncr. T c 

Code Authori tJ Dire ctors, t he I:ldustrie l Jjj_-,-:..sory Joarc. :1nd t .. e IP-bo 

Ad vi so ry Board aE:;ree with r~w doci sian. 

I am, honeve r, r e commencli n(' in ?, se:1E nte clo"1 "..1e:1t tn...'lt ::>n 

order for exenrotion be- e:mC\lt ed in behalf o_ ~ <..: '"L·.;inie. -' rt St 11i0. 

which will pe~i t this com:_Jany to ")ay a ni nimL.,_n 8 s lo·.- "..S $l2 )L;r --L': 

instead of the $ 14 pe r week 2.s p rovi d.od for i:1 t ' ..; co c." c l."n ti 1 rue' t • me 

as t he code can be r c- op cncc: t o co Hs ~c r a scut::..crn diff. ... r~nti , 1.ic· 

if evidence sho'NS is ne ce ssarJ , wi ll t;i ·..re t.1c Vir ·ini:J. Art St\.-, • .:;.io., t e 

relief they s eek. 

Attachment 

9811 

rr~ rry 

·""..rry 

DJrJU. t 

S. Berry 

S. 3 ' rr;r 

~:..d.Jnini s tr_ to r 
- 484-

:NATIOHAL :rCCOV ~RY A:Di.'L:ISTrtt_TION 

ASHII J.TO:~ I D. c • 

To: Harry S. Berry, De:)uty Administra tor 

From: . Labor Advisory :Boa rd 

Subj e ct: Code of Fair Comoe tition for the 

LADISS 1 HANDBAG I1mUSTRY 

August 10, 1934 

We do not J~) rove of t he ::~ro )Osed order granting the Virg inia 

Art Studios, Inc., Lynchburg , Vi ·r g inia , · o.n exmn:p tion from the provisions of Article IV, Se ction 1, of' t he Code of FaiT Co ~:~e tition 

for t he LADIES 1 HAND:DAG. I NDUSTRY. Tile mininn.1rn . r a t e in the code is 

35¢ pe r hour, or $14.00 per we ek . The y rOl)OS Gd orcler v-.,rould. p enni t 

30¢, or a $2.00 p e r '\i'Jeelc, diff e r el1 tia l. Tl1i s is out of line vri th 

the differential ~)ermi tt d in industri es which employ similar type 

of labor t practica lly all of. which inclucle a $1.00 diff e r ential·. 

LABOR ADVI SORY BOARD 

( s) By ____ ~A~·~H=·~~=w ~r~s __ _ 

AHivV me 

9811 
- 435-

Col. Harry S. :Berr;{, 

Alli~inistrator of Divi~i on 3, 

l ational Re cove ry Ad.:nir..istr...,ti o • 

Your Peti ti on c r, tn0 irg · ~1 e. rt Goo's Sb .... d.ios , I·1co or~ cd , :-

Corporati on organized unde r t he l a :s of t 1\3 st~ t"' of 'ir ·i:-ia , 0.16:-~ r;d 

in the busine ss cf m9.m.uac turing and Gllin£., L::.>di e s 1 ;.;:~;1 •o< t;. s, r t..:s t -

fully re·_) r e sents: 

1 . · That it is Ol)Cr a ti:1g unde r t e Co d0 of ?.n ir Cou;c ti tir-n 

for the Ladi e s ! H9.:1cl''l€ I nCi:J..str;, 2. a:91roved '1 •. :r>rc. 14, 

1934, except a s to th0 l abor :p vi ~io· .s ti.L;::-eoi' ... la7.in....> 

to the minimum -e~..; see lc, ar to ;/:.i ci it is o .r1. ti.. ... · d ·r 

a.n cxe~)tion ordt.. r ex"~i! il g Sen t . l , 1<23·;. 

2. Tr.a t the date for t '1G cx:Jir::ot i on o:-..' s::> id c:Ar.;m_) tion orG.er, 

as pe titione r is advised, -g_s fixed in g_n ticiy::. tio .. 0.1. a 

he-..rinb before ti:e.t d8. tc U:-Jo::l Jro·1oscc:. 8.f.'lenc:me:1ts to t h is 

Code r elating t o l Pbor an~ 7~ge sc1.lc s . 

9811 

3. That it is no rr -::n?"~-'C lt ":-:::>t S"lCh :"'ri·1l: ··.rill r..ot b e ald 

p rior to Se'9tembe 1, 1934, f'.Ecl i 1 cn~er to 'J .. serv<J t' c 

?etitione·· 1 s sto..tus u::ce r i ts )rot"st ciul:Y filcd i 

accorda.nc..; wi t r ... Zxcc"J.ti VQ OrC..3r f/:2, of J··l:r 15 , 19:::-3 , he 

cxerrrotion .c riod s!lO-.J.lc'!. be G:.t0ndccl to s ·Lch d. '-'te '"'..S ti.e - - anticilJa ted h e3..rinG s hall h~·-e e n .1Jl · e.nr' t .. e )r OJosed 

e.mendmcnts disposed of. 

4. That the r e are a tta ched hcroto to 1H3 r ead _ s ~;.;vidcn o in 

furthe r su•T1ort of its ri""'ht to such e:Atcnsion 1 r e i :1 

prayed for, t he follm7in6 docu:.1 1ts ; 

5. 

(a) Copy of l etter, da t ed ·:::. rc:l 30 , 1934, fr"'!!l 

Rob e rt D. :. amscy , Bu sinoss .. ':.~ _;er of t!'. 

Chambe r of Co:me:.~c e of l ynch"u,lr::; , to 

(b) 

(c) 

(d) 

J ames C. · o rtt y , Assist?.nt :J'J \.t~ . t.....inis 

tr2. tor, a tiona l Ro covGry Ad."1ini s tr· tion . 

Aff i cl.avi t of 1\::> rn i e ::-< . !:tohr, ?rcsid. .. .m t of 

Virg inia Ar t Goo d.s Stu ios, I nco 1--r)ora t ed . 

Affi 6.avi t o f Edmund 'ila l tuc1:. 

Affidavit of o. H. Tufts. 

That a copy of this ·nc t i t i on has b-.;311 

of the attached C..o cl..,_T:lvr..ts to !10 Cod0 

Industry, 247 :?ifth Ave ., ... - m'T York. 

for~ rCcd i n co~i es 

t..ori t:-/ , Ladiec- 1 :·· nd e 
- 486 .... 

Wherefo r e your Pe t iti one r r osne ctfully -.J': e.y s t lw. t e. !r r orde r 

b e i ssued ex end g t h e ~e io d of its xe~ ti n fro~ Code y r ovisions 

r ela ting t o l abor, to such da t e as ~)ro· os d amendme:1 ts t o sai d Code 

p r oviding for wage d i f f e r entia l f o r t he s o" J.~t l1 terri t ory s ha.ll 

have b een g iven a hearing . · 

Attest: 

/ s/ :Be rti e R. Tho rnh i ll 

Se cre t a r y . 

9811 

VIRGIHIA ART G-OODS S~UD S, INC. 

J3y / s/ WJaiili c E. Ro h r 

P re s . 
- 48 7-

Lei,;J.1 f . Ore 

ssi s te.nt Dc~:.m t;:r Ac\.mL1i s tr:::: tor 

Commerce :Oui ldL.1t_ 

':iashington, D.C. 

Dee.r Mr . Ore : 

The Virbinia Art Goo~l.s St uc~ ios, I 1:.. c . - :::.esar .. ~C:. 2 ·)cti tion or a:~ 

amendment to the Cocle of :!!'a i r om)~Jt i t i on for t : .... :1.£' i~Js ' H."..i, :·..>~ 

Industry by ad.di n-g to ~~rticl c ~ .. of t: .. c Co dJ , t! ... e 1'ollo·.:111; c; tioj-: : 

(a ) In the St Rt e s oi Vi ro~~ie , :orth C~rol ~ , South 

Ca:-colina , Ge or; i e., Flo _i .. ~f' , .~ is '" ssi·- i , Lo· .is:".l~' , 

Ale.bama., Te :n.nGS'""'J8 8.!1' J:e: ~ ..... , t~-0 j • .:.:!i..~.':1 r•:> e for 

unskilled em:,lo,/oes si::.ll OJ ~')~~ ~kl' -'-o-~ 1 : 

(b) The ;nil i rnum 1"'9G0 for s o:"J.i - s:.lllcd cr;llOYr3C'S s:"l··ll be 

37-}¢ )Cr ·our. 

(c) L-e&.rn0rs mB.y b e errr--.lo: od. for~· ... iod. o f T>.ot ~- c; U.L. 

t en we e::s a t a :·.1Ln;:rc~1 ,..,r-.;e of }~~ ~.)Jl' '.o·.;.:: , _·ov~ ')': 

t hat t hG nurn"Jcr of S'J.cl: lc...,::;.·_ ;;r ,_ ..... ll .. ot ~t "11 t ... k: 

exec d 15 ·)er ;.;~! t of L1o e~"ltL.e .n·.mo.~"':. cf c •. lo~·-- .., 

Tl1e ·)etition ·.ra s sunortGcl by t ':cJ f ol.Lo ..... ! do~·1.:·1<mts : 

(a.) Co·)y of l Gt tcr, ci..:-tod ·.::-r c~l ,..0 , l 'Y)t.l , f:.~o .. 1 Ro".: c t :J. 

(b) 

Ramsey , :Busine ss :::m:.

0 e r of t ' .. C . .t'"'.noe:c of Co . .1r.1G co 01 

y;.lchol.u~ , to J £>nos C. ·.7ort •.. y , . S!'>ist::-;-,_t Da· -ut:· . · .. l:..i str~. tor , li?. tion".l ::-ccov·~:.~~- -~( :ti:'lst:.·~tion . 

.Affid2.vhl. of k~.m e :;:; . ::o:,::. , .t"'l'·;Si · ;i1t o:t "'i:i.· i11i ~ 

Goods Stuc.io s , I nc . 

.... 

-- " 

(c) Aff i dav it of Ec.r...w.1C. ·:-_1 tuc::. 

( d) Affid~vit of 0. H. Tufts. 

The Virt;inia Art Gooc~ s St·1c io s , I:.1c . 

tion was a lso sent to Col . H. S. rr , V 

st2t~s th~t ~ COJ' of its 

.ty ' .. i:1istr:.1 to:r. 

CtlAft e r ca r eful co si c~ ti o:1 of t~-:c st·t e::" :t ..... li1!"'dc :>~. t: · cc 

·!) resent ed i n e cl.ocumen ts, t:r ... e Co ·l.c A-L,t.lO ri t;y , .:'t : 1 \.i t ... :.~ · .-t 

30 , 1934 a t the Ho tel hc.Al)in , vot ec to c'a:1: t .. ~ 1 titiJ .. 01 t'. 

Art Goods Studios, for an ~menckl<J!1t to t!_ :oct. i."! 1. ic:A t: c;· i~ tt 't: 

9811 
,.-488-

(a) to be g ranted a differential in v~ge rates in favor 

of the southern territori e s. 

(b) to fix a minimum vmge for semi-s dlled '"Jorkers at 

37¢ per hour. 

(c) to ·oermi t learners for a l;e riod of t en y;eeks at a 

minimum wa.ge of 24¢ l)er hour, not to ~x eecl 15 ,J er 

c ent of the entire number of employee s. 

The Virg inia. Art Goods Studios, Inc. in support of their ·ue ti tion 

claim tha.t the manufacture rs of Ladies' handbags in the northern states 

have s:;:illed l abor who viOrt: vli th a 11 s·;e ecl •.-rhich ce.n be equalled oi'lly by 

equally sk illed ex)eri enced ool~." 

Fifty crcent of the hf:mc~oag LH1us try i s loco.t ed outs i.c1e the me tropolitan area of 1 evr York in nhich no e~::pe ri en ed }J.Gl:? is availab le, a.:1d 

the manufacturers obtain the ir vrorl:ers L1 the same mEt!1ner a. s C'l.oes the 

Virt;inia Art Goods StucHos, Inc. I n the metropoli t e.n e.rea of ~TeY.' Yor~;:, 

in ·Hhich ex; e rienc ed he l:;; is a v:.ti l e.ble , the wase P ·)a.id s·,:t.ch hel~) i s from 

tvJO to three time s r.1ore ;lf:\.~1 :.12 id L1e :..:;,1ex.'!eri anced hel ). 

The Virg inia t Goods Stud.ios, I n c. claim t hat they a. r e l; ione e rs 

in their loca lity. 

The records show t J.1 is firm hn.s been estaolisl1ed over ei:;:ht years, 

and that during the ~)as t five yeHrs, ~1e:r l1ave enjo;)reG. a l arge volume 

of business in the industry, e J!T_J loy i ne:; at t iine s a s many e.s 168 '.rvorl-ers. 

Thes e workers have a ll hacl some tr L1i~g by this time , a:;,1cl. are a vailable mostly a t the minimum wa5e re.te •. The q·ne stion v;rhether the labor 

in Lynchburg , Virg i n ia c a:1 com•1arc ·::ith northe :rn ':ro:cl:ers in vohune i::-1 

s11eed of )roductiol::. is not d8t e rminD.b l e , .,i 11 ce the k ind nne~ qua.li tJr of 

vvo rk vari e s i n ea ch f a ctory , a:c1d l a ck of 1rocJ.uction frequen tly t he result of ine fficiency i n f EJ.ctor:r n?.n&.l:.ements as has been clisclosed 

through inve stiga tion made i n other L1clustries i n vrllich similar cle.i hls 

have been made. 

The sta t em8nt of tha Virs inia Art Goods Studios, Inc . that 11 t he 

practical o.nd i nevitable r esul t is t h0.t t he Virg L1ia Art Goods Studios, 

Inc. cannot succ e ssfully corrr::)e t e with other manuf~ cturel~ s 'Vvhose out:?ut 

:ner Ca_;:Ji t e. of el112.Jloyees is so ;rru.ch t; r eat e r"--this merely e:;nresses their 

ouinion. 

Tl1e loss sustained by t he Virg i n i ::>. Art Goods Studios, Inc . during 

the year 1933 may ha ve 'been due to fl. C.o zen or mo re causes, anc1. to have 

this Company claim tha t such loss e s r esulted. from incree sed le.-b or costs, 

is merely e-::-.:? ress inE:; a CO i.lV8 i.1 i ei.'l t co:;,1cl io l. Any incre~ se in l a.'bor costs 

might have been included in t he co st .; of ir ~1 roduct, or they h.::,.ve offse1 

this increase by t aking the cli ffere:;.1 ce out of the ve.l ue of na.t e riG.ls," 

if they fail to Cl.o so, they c e.1not justl,r a ttribute it to incree.sed le.oor 

costs. 

9811 
- 489-

J rom ~'le figures furnis' :;d o:r t. e Co::r·~i~Y o:. t11 ir sq,l s 1es 

costs, it rrouL. a.~ near t hat t:1ey ;:: ro - 1~1ci:1 t' -'-'i:t P s fe 

and aQc~uato y 4ofit. 

rho test of e fficiency i n rro:..~~:e:.·s ... ad ... b:· t.:'-'i:i..' ·1:::.·odu t en 

is not bB S·3d on f ::;_ ct, it i s me re1;y e.::-1~0SS.J..n'"" '_is L1r i v~ du~ 1 o· io: . . 

The st::. t e;:-lCnt t~et tlu . ~od. J.c ts o: t~c Cor.~]Pn,: rr, sol·' . .:.~t:,. '-L· r 

)ri c e th2.n the ··) roducts of :1o:ct~ ~l.n fe.ctor}es is r..::> '..1.St"'inccl. , ::tic"L1-

~rly since t!;i s Corrr'Je.n' n~.i1't: .f 9ctu:.~es ?. ··.niC}.le J.i._L; of : -=-n ·b~~s , c.i :ferent from t r.:; a~ s manuf?ct· i.. ~:;i by ct· ~r fir:-1r. i::. ~·;.e · . . s crv , ""· 

f~..'..rt:~er they ,· re: rote cted b · ~ia ents , .. ~.·c: t: e:t hqve e.tt~"tcc. to . 

The Virt;··~i'lia Art Gooc.s st~..~_Qi os, ~1c . (o ::> c...,oo 1 volu .. c of b 1 in ss 

;nc they a.re ·~ t ed fina;.1cic.l1"· as o: c of t:_.; cut st:'.:1C:. · · {; ~ir s in t: c 

· nc'.us trJ. 

It is not n e c e ssary for tLe ·1 0 i: iP . .hrt Goocs Stuc"ios, I:1c . tc 

)O tain 1m1or ·;,-.;:;e r ?.tes L1 or~.er t o con vt .... 'fit:. f~.ct.)riJs i t, v 

1ortJ.1e r;.1 t e rri tory, e.nd b1c fr..ct t!rt 1e~· h::.v J su:f::n· ·; <.l , sn..,11 loss 

urine; the ;;ear 1933 is due t o t::e zer.1o :C.)2SO!"S th-.... t c::>used ctiLr 

fa ctori e s iT'! tJ.1e j nCJ.ustry t o sufl.'er 1e.r,:_er 10SSI.iS , <.11 d.UL to t .. O f· ct 

~:1at they a.r e tryin.:; to t;ive too b·'~a t v-:.J.u-.:;s 2. t tn-~ '):... ic..;s . 

The r ec;r>.<Js t to E>mono. the 

>~Jm i- s.d11e (. ·. -:-.rl-e_ s CB.i'!.:1ot b 

;io:,1 of a seoi- s.d1lcd r.or:~e:. 

fJ,_,c c to ?.11o 1 :--. v1ae;c r". te of :37 1

; for 

cc·ll:: · c

1

.crcd since tl'"'rc is ro cl'~.-li

1 .. 1. -·~: .13 Code . 

The r oqu,;st t o ?.mend tl0 Code to ·1err1it J.l.i::lrtw::.·s is c.l.c;tic b/ t_ e 

Autho :ci ty 8.t t!1e ·-1 resent t ine , a:,1r' U"-1 til :~e Code s: 9ll bJ cu. en "cd 

y ::t[,re ement vvi th t~ w Adlninistrator to ·Jrovi '.c 1e8.:...·ne1 s for t: J c:1ti:...~c 

du.stry . 

The Vir,5ini 2. A:...~t G-oods Stuc.'..i os, :;:nc . h•r -Jce:1 OJ •r·. :i.:1~ U!K- a 

ta:r si n ce t ile effective c> t d o:;: t~ e CoJ0, ·.~rc:~ -~- , 1cd4.. This :-t::> 

;.:-)ires Sc·) t er.lb e· 1 l S34. fJ..iho Co cie .Art1 ori ty · ro·~.;;sts :::~ · ns t t. c - ' 

onti nua:nce of t he ir st2y · e:royor..d Se"1t 0~1bJr 1, lS' l , £iiiCC t .• c 

irL;inia rt Goods st-... 1.dios, I n c . ::,,,_ t:-:c ;nti:i.·o Tl0i1b'l of A'l' ';ust cu . .:.ng 

.ich the;-/ m::i.,_·h t ho.ve suo:-jitte ... : t,::-i r >cL,l t· or . . __ o·--~vl.ir , the:r i<>ih.: 

) do so until August 27, 19..,4 "~1r1. t:1..;:' c-:~0 no11 rcC1uJc-t T\., th~·- t c 

·.emotion ·.;e :L~i d s nou1c.'. bv e:;de:._J.ou. .to such ("t<' ~~r t~" ";tici '-'ted 

3J ri n.:::; sl ~. ll n.ve bo'J n. 1w1d. , ''UO tl;e ·>ro~1oscd . .;-:-. :!rc1 c:1ts dis "~OSe~ of. 

· COJ:: _;_liT .:C-: l"i 

L'J)I:;:}S I ;: ~JJ0.n.l :;:_ ·:u s ... ! 

.n.. . .itt ! t: q 1 

Co-~e :Jil'ector 
-::-490-.: 

c T.d3 VIRG Il A AR'l GOODS STUD I OS, E TC • 

0 

p 

y 

Colone l RoJe rt Lee 

Lync hbu r g , Virgini a 

Dc:?uty Ad..11ll: i stra tor f o r L :du s try 

VI? s~1ir: ton, D. C. 

Doar Colone l Loa : 

v! -l ::..· h. 8 , 1935 

I am i.1o t su re t hat you a r e t he ::ierso:;. I shoul d be ···;:i t ine:; to, but 

since y ou are t he one vrh om I savv when I cume to WashL 1c_:- t on l Pst sur.:nne r, 

ancl t ho one who a rn:mt;od t he confe r enc e •:Vi t h Col. Ore 2.:10. sev e n' 1 othe rs, 

I am wr it in~ t his to y ou, and ask i f some one els e 'i s t ho ~~ ne r one 

for me to cornr.mnice t e Y: i t }1 tha t y o·u. !.JEtS£, t h i s h~ tt r on to him. 

You will r emembe r t ha.t a t t l:e time I C81l1G to '.7e s::i nt; ton v:e we re 

asking f or a mi nim.un ·-.7a.ge of $1-:: . oo , '.'it h a:1 ~- L) re:l tic e __ e riod of t hr ee 

mon t hs duri nt; w~1 ic~1 t ime we s nouJ.d be 2 llo'-re c'. t o ·:Je J 80~; of t !.1e mini mum. 

We hc>.d bean ·)ay ir.c; on t h i n b :ts is L1 a~co rcia:1.c:e vri 'c h t he ? resi den t 1 s ngr oemon t t ha t r;e s houl d b e ··_')ermi ttec.l t o de:,?.rt from Co c.e requiromo:.1 ts if we 

~o ro t est ed ELE Ri 1s t a ny of t hese r c-CJ_u i rGr..ents cefore a c e rta L1 da t e (w} ich 

,,_.e did) until such t ime 0.s a. me e t inG should be ho l C. to de t ermi ne t ho 

justice of ou:.. ~') ort. At t he nee tine you -?.l.rrauged i n lash ng ton it v.·as 

t enta tive l y 8.(_ra ed t hat we oo a::..l o,.-red a :~l in iHlun w:1ge of $12.00, with no 

)r n ti ce yed.o d , Yi i t :: t l-1e ·<illch; rs t a.nc\.1:'16 1;> t by Se:-; t emb e r t l1ere should 

b e a f i nal decision i n e~erd to R d i f f e r en tia l ~n~ an ~; en tic e 

~e rio d f or Southe r n i no.us tri es. 

As f a r a s 1-1e :n rr t l1ere ha.s b e en T!O Clec ision mac1e on t h ose ~1ts, 

ye t we }'1.av e continueC: f'.. ll t :O.ese mo11 t hs to l~v e u•; to t h i s tent -:- .v e 

acreemont. During t he fp_ ll ~Je d we lo st $18, 000 . 00 , which y ou can 

we ll unde r s t and is not ~; oo d f or ai1 i:1(ustry. We }1?.v e l1o\·: ent ared 

Ui) Ol1 a S)r inc s eason rlur in:; which !')e r ioL'. it is e.osolu t e l y essentie.l 

t ha t we I!l:-" k e a fi t if Fe ex · e c t to con t i:n.u0 L1 b usi:i1BSS. :Uur:.n[; 

t he f a ll ne c~ d not n ae0. to em Jlo;)' u:1 traine ~ ·:le o·)le 's our e~-u 2. r 

CO I1_) S of v:' o rJ.:e rs cou ld t al:::e c :=.:ce o f ou r busiD.ess . ;;: 0 qj_~e i1ow, howev e r, 

i 11 n eed o f em; loy i nc; a i1U111

1

Je r o f n.e\•1 ·o.n t raii.led )S ~"~ , E.\nd. it is 

ab s olu t e l y assent ial t lJE. t 1,7 e oo allo•."ed to ··)a" t ·1em l e s s thai.1 the 

mi n i mum 'Jar:;e u:1t i l t lwy e r e b r oke:1 L1 to h~ ·aor::.:. As :,rou 1G1m7 

t he r e ar-.3 n o trainecl. 1eo··)le i n t h i s s e ction exce')t ~1 e ones we have 

tra i ned. . He fee l t ha.t 1..mde:c L le ? r esi dent Is RL emen t r.r o hav e a ribht 

t o an _)~J ren tic e :•e riod 'lmtil sam-;: ~~.E::f i t e decision is lBa ched in r e; ·e.r d 

to ~1 is ma t t e r. He f'.re , t :1e r efore , this tiine eirrploy in&; the extra people 

9811 
wa ne ed ::>t 80,; of $13.00 , until suc11 tim'"' a!: tl vY a r ..., n.'ul to co 

v10rk Gffici.__ntly . 

'i"e b.2V0 tri a d to li V G u·:> to :·hat e e......,r ..... d to do 1 , _l ' .'t.: "..,ul 

t:1at wG v-,r2n t t o me.l..:a our n osition in t:r i.a rr..etvc r ch.q r . 

a r y truly :'ours, 

TH:6 VIRGL:IA _ _?.T GOODS STU:JIOS , I: C. 

1GR/A 

9811 
Mrs. Mamie !B . Rohr, 

?:resident 

- 492-

The Virg inia Art Goods Studio, Inc. 

Lynchburg, Virginia . 

Dear Ivirs. Rohr: 

March ll, 1935 

Your letter of hl)arch 8th, a c1d.ressed to Col. Robert Lea, 

has been referred to me as the Le.dics 1 Hai1dba[: Code is at 

pre sent unde r my direction . 

Tilis code provides for a mJ.nJ.ml.un 1frago of $14. 00 :9e r 

week, and the r e is no p rovisio!1 for learners ()r apprenti ces. 

Any a g re ement to the contrary vrould not be valid. Eo one without first obta ining an 0xemp tion hP.s a right to v:ork any employee 

other than in acco r dance '::i 1 the ~J rovisions of t:1e CoG.e. 

I f yo1..1.. feel that the co cie ~:·novisions arc working a ha c~ ship 

i n your i n r tancc , 'Hill you ldnclly wr i tc askiJ1g that you be granted 

an e xemption . You shoul d stat e tbe number of ~crsons whom you 

intend workin , e.s ~1~)r ntices , a n d fo l, vJl'L.qt ~Jer od of time -also 

the amount the.t y ou L1 t enc1 7 ayint; them duril1€: tho apprentice 

p e riod. Please state the total nu.-11ber of your emJloye es, and 

any other fa cts vrhich you think are Jret in ent tcward g iving force 

to your contentions. 

Your a:.J)lication for Gxmnption vrill be put hroug~1 t he 

J.~egular chanilcls, and you ma;y rest assur ed it will be given every 

consideration. 

R- 21373 

9811 

Very truly yours, 

Wa lter :Mangum 

Deputy Administrator 

Textile Division 
- 490-

Till VIRGIHI Al.i.T GOODS STulHOS , I ~C . 

1306-1310 hu~ch Street 

LYNC!--:J3URG, I GI: IA 

March 12 , 19:35 . 

Mr. Vial t or Mangum 

D8 puty Admi nistrator 

Text ile Division 

Nati onal Recovery Administration 

Ua sh ington, D. C. 

Dear Mr . IVJangum: 

We are just in r ccc i n t of your l e tte r of Nia rcJ. 11 t: i n ems •or 

to ours of rv;arch 8th addressed to Col. Robert Lea . 

First, in r ega rd t o tne s e co nd .._JarEt.br~r_Dh 

are we ll aware o i wha t the Coc e "prcvi ce s 11 • 

were made without our sanction 2 s ;vc ha ve in 

to Washing ton s e t forth. 

of your letter, e 

These nro visions 

innume rable l e tte rs 

In t he very b eginning t he ?resident an~ ounccd tl1e.t i f th~..: 

provisions 0f t he Code wo r ked a :b.Elrdshi p, a f i rrn · E-d a right to 

a stay p rovided said f irm entered a. ) rotcst before a ce rta i n ca t o , 

said stay t 1 be effective until such ti.ne fl. s a r::ec tinu slw·JJ.d be 

held and a c t ion tal.;;:en in rc.;ard to t he po i nts a e:.ainst w:1ich protest was entered. 

It seems quite sur_pr1.s 1ng to us thB-t before ansVlc ring our 

l e tte r you had not looked up t :1e correspondence we 1..::~ ve bad with 

ERA i n r cc;ard t o this ma tte r . You stf>..t c i n t "je t hirr ',)a r a c raDl of 

your l e tte r that i f we f ee l the Co cl.c p r ovisions arc ;•or!:in--> a hardshi p 

that we should wri te askint; to be t;,ranted. an c:::e~)tion . I t r;ould c~...rtainly seem that someth ing of all the a g itati on 1f t'ds question v-ould 

have come to your ear s. · As we wr o t e in our letter of :·arch 8 n , .qction w&.s to have b een t aken on ou:~ c-1.s e by t h. .. first of Sentember, but 

no a ction wa s ever t al:en tru:- t vvc lm::>w of. ile wrot e el· bor:.te eA"TJlan'l.-

tions, g iving i n detail our g ri evances, e..nd stt>ting Hn:r it ·:B.s absolutely nece ssarJl if we a r e to st-9.y i n busine ss t h?.t \-;e be !1.llo 1ed t 

most £>. $12 . 00 mi nimu.!11 wage fl.nd an ap!)renti ce 71cri od of 80,J of t~ O) 

"iUUlount . P e rlmps it woul d be we ll for you to look L1 t : 0 f iles and 

l earn what the situation i s . 

We wish to s ay once more t fr'l. t ~e conside r \C arc still allov.cd 

t he stay which the Presi dent ngr ced •e mi6ht have , sin.c no ~ction 

has b een t aken on our nrot e st. /e arc , t l1e o.Jfo r .... , D?Jlng a limited 

numbe r of b eginne rs unfamiliar with t he handbag industry ~9 . 60 !'. 

week while they are tra i ning . 

As soon as our epplice..tion fo r a n exemption , ... i led last A 5t , 

is :put through llregular channc lstr and a do.Jcision i s ~e , \7e sh'"'..ll be 

glad to :Pave a r euort on it. 

MJ,Rj .A 

9811 

Very truly ou s , 

Tlm ~G I iiA ART O~S 

Pe r ( siened) 

smun OS , r.:c. 

RO ffi , 

Pres. 
-494-

March 18, 1935 

Mrs. Ma.mie E. Rohr 

The Virginia Art Goods Studios, Inc. 

Lynchburg, Virgini~ 

Dear Mrs. Rohr: 

Your letter of March 12th has been received. 

You arc quit e right in stating that the stay whi ch wa s granted 

is still in effe ct. 

The Code Authu ri t y recently inf orrnecl me t ha t they are ma~cing 

an ap:9 lica tiun for a termina tion of t he s ta;y. They fee l that it 

is unfair t o other members of t he ind~.stry, anL~ are asking us to 

take quick o.ction. You, of course , are very familiar with e.ll 

the facts o-:-' the ca.se sn I will not again .;o in.to them. They havs . 

a right to . sk that tl10 ma tter be brought un for hearing , e.nd I 

would like t o know if you a r e flg r eeable to havinG an informa.l one 

rather t han go ing to the expense of having a foi'Il12.1 Public Hearing. 

If this meets with your ap)rova l, I can then s e t a date which will 

b e mutually agreeabl e, as I understand t heir fo rma l request will 

probably a rrive he r e tomorrow. 

For your information, I have only recen tly te.ken over this 

sectiun and , therefore , have no knJwledge of the matters which 

happened l a st year, and unfortunat ely, the days are not long 

enough for me to read through the files as quickly as I would like . 

9811 

Very truly yours, 

Walter Mangum 

Deputy Administrator 

Textile Division 
Col. Walter Mangum 

Deput y Administra t or 

Comme rce Bldg ., 

l'la sh ing t on , D. C. 

Dear Col. Mangum: 

- 495-

COD3 AUTHORITY 

LADIE I hA ~DTIAG l~USTRY 

347 ifth Avenue 

l~~l YO:FtK 

The Code Authority 1at a me e ting he ld on Ma.rcn 7 , 1935 :yassed t.1e 

following r o s·olution: 

RESOLVED, h~t the Code Directors be and ~rc horeb 

dire cted to r equ est the Aami n istra ti:::m to t erminate 

t he exco:9 tio;.1 to t he minimum wa ~c ra to g:ra-11tcd t o the 

Virg inia Art Goods Studi os, of Lynclburg, Virginia on 

August l, 1934. 

Since t his excepti on vBs granted to the Virg iniq Art Goods Studios, 

t he Code Autho rity has request ed a nu~ber of time s to ~z o it terminat ed. The Co de Authority has been sreatly embarrassed by havinc; t he 

Virginia Art Go ods Studi os and the Pat Bat:; , Inc., of .:.ri chmond , a . 

the only members of t he industry r~nted an 8XCeption to tho code 

wages, since nume rous r e que sts from other meQbcrs of the inaustry fo r 

t he same exc epti on , to t he co de have been refused i ;1 every case . 

Othe r memb e rs of the i ndustry wh~n found · viole.ting t ho age 

provision o f t he code , have attempted to justify t ne ir rignt to d 

so by r efe rring t o the e.:; ce~Jt on g r a ·1ted t he Virg i ni !=t Art Goods 

Studios. 1'.1e continuati on of t his stqy is r ogo.rdod by he r err.ainder of t he l n dustry as being discrimina tory. 

The Code Autho rity herewl th re quests ti1e.t thi ~ inequality in 

the industry sh£>.11 be. t ermina ted a t or..ce by t e Administrator, and 

t ha t if n e cessary, a h cari ns be held i mmediately fo r thqt ~urposc . 

The Code Authority a lso a sks tne.. t t ho excepti on g ranted to t '1e 

Pat Bag , Inc. shall lso be t ermi nated , and t hat i f foU11d noccss ry , 

they should b e included in e. hoarint;; tlli" t rna;)' be ca l led for this 

purpos e . 

9811 

Very truly yours , 

CODE AUTnORI TY 

LADI ES 1 HAl :9BAG 1: -;;· ST:}Y 

( s) A. TT~!m¥..A.L 

CODE :9IRJCIJ:10R 
- 496-

• 

i:a rch 25, 1935 

lvir. A. h1itte:n t h::>.l, Code Dire ctor 

C0de A-u.th ori t y , Lao.ies' Handbe.g Indu s try 

047 Fifth AvenuG 

l·Tew Yorl;:, . Y. 

Dear Mr. l',ii t t en t h-3.1: 

I h2ye your lette r of Ha rch 19 th v1 i th 

:cefe rence to the Stay D..ndor vrhich the Virt;L1i a 

Al~t Goods Studios are ~?e . t ing . Undo;;r da te 'Jf 

Me.rch 18th I ':;rote '!-,irs. Rohr e.s :9e r e. t tached cop y. 

I have ha.cl no r ep ly yet but trust one \7ill be 

forthcomi!.1g with in the next da.y or "~J7 0. 

You may rest a ssure d that it is my desire to cleB.r u:o this situation a s soon a s it is 

~ysically ossible to dd so. 

D:2jH: sk 

En c. ( l) 

Co:.JY of l e tte r 

Ve ry truly yours, . 

1ii8.l t er h'iant;'UITI 

Deput y Admin istra tor 

Textile Jivi sion 
Col . Walter Mangum 

Depu t y Administ r ator 

Commerce Building , 

Washington, D. Co 

Dear Col ~ Mangum: 

- 497- ' 

CO iE AUT_- RI'IY 

LADIES 1 HANDBAG I DUS'IRY 

347 Fi:' h Av e . 

JEW YO:tl<: 

arcl 27 , 1935 

I am in r ec ei pt of your letter of arch 25 in r efe r ence o 

the mat t er of the Virginia Art Goods/Studios. 

I certainly appr eciate your efforts to bring this rna ter 

to a s atisfactory solution o Any conference or hearing thnt 

you may call for this purpose , I shall be t:;lad o a end . 

.PJ/J. :AS 

9811 

fery truly ours , 

( signecl) A. I TTE:fiH.AL 

A. Mit enthal 

Code Director 

Ladi es 1 Handbag Indus ry 
-498-

THE VIRGINIA ART GOODS STUDIOS, INC. 

1306-10 Church Street 

Col. Wa lter Mangum 

Deput y Administrator 

Textile Division 

LYNCI-'J3UH.G, VIRGil-IA 

National Recovery AQministra tion 

Washington, D.C. 

Dear Col. Mangum: 

Apr. 20, 1935 

Re cently we wrote to the Code Authority for our Industry in 

New York telling hin of the difficulties we have been having in 

trying t o _operate with a p rofit and to turn out the necessary 

amount of goods in t he time required. In response to this appeal, 

Mr. Iv1ax Eerkowi tz made a trip down to Lynchburg to see us, and made 

a very ca.reful study of our p roblems in the limited time he could be 

with us. 

We want to say t ha t we found Mr. 13orl·:owitz most cooperative, 

and very much i n t e r est ed in our situa tion. He realized that we 

we re in a very seriou s si tuation a.:ncl m-?.dc suggestions which we 

felt were very constructive , and which we should like very much 

to try to ca rry out. We believe as he does that if we could follow 

his suggestions we woul d be able to 1ut our business on a paying 

ba sis, and not find it necessary to a sk t he Code for exem{1tions 

from the regul a r requirements. We want very much to do this, and we 

want to be in a po sition to pay our employees, who a re very loyal 

and cooperative, just as much as ossible. 

If Mr. Berkowitz were in a position to stay with us for several 

days we believe he would be of inestimable va lue in helping us solve 

our problems. Do you think ~e could be spared to us for a while? 

We r ealize that t his is asking quite a good dea l -- that he is a very 

busy man and that in his position he r~s a great many things to look 

after -- but if he could be lent to us f or a short while maybe our 

industry would cease to be a problem. If it would be possible for you 

to send him to us we would like to have him come as quickly as he 

conveniently can . Kindly let us hear from you. 

Sincerely yours, 

(signed) 11/iAl.iiE E. ROHR, Pres. 

THE VIRGINIA ART GOODS STUDIOS, INC. 

NiER/a 

9811 
Co l on e l Wal t or Wu:mgi.ll'Il 

Daputy Admin i stra t r 

Commerc e Buil di ~g 

Washi ng t on; D. 

Dear Colon e l: 

.~~ 

- -

CODE AUTtiORJf.lY 

LA.DIES 1 1-tAl:D:i3AG I DUSTF..Y 

347 Fi ft.1 Avenue 

.Z'il YORK 

. ~ .. April ~'7; , 1935 

Ro : Vir;ir.i a A4t Goods Studios, Inc . 

1306- 1310 C urc1 S root 

Lynchbur g , ·ir&inia 

I have rna.de a ca r e f '.ll in·:e s t i gati on of tl-..a co1 di tions ir. he 

fa c t ory of tho a bove f i'i n n~ ·l1::1. ~ faun~ t h t C: tl J ':=>vo boon wo k -

i ng cve rtime from Ap ril f irst 0!1, avo!'agin& frcrn 2} to 24 hours 

pe r pe r son . I hav e mad.c a rrangemen t s v:i th them to )a./ time a::1d 

a hal f f or t nis ove rtime work which t hey h3.ve ar:;r ood to do . A 

lis t of tho or~ rs a nd t ho amounts Jill be i n our office within 

t he n o:·t few day s . 

Miss Rol1r, pre si dent of is f i rm, stated to me t~1.t she had 

r e ce i ved an e x emp t i on f r oEl you -~or a'Jy r enti c es. "O fc: i l to find 

in our f ile s any corre sp cndencc , or copi es of some , 7itn refe r ence 

to t h is statemen t. 

The a t t a chod r epo _ t g ive s t he numbe r of ~"rkc s wn ··0re emp loyed b e l ow t h e CodE:: rLini rnum from Decemb e r 19 , Li34 to da to . 

We wilJ ap:p re ciat e it i f you ·!i ll s end us C0'1 i os of any 

corre spenden c e t ha t you nJay have } ad wi th thi s f i nn in order that 

we may strai gh t en the s e rr.a ttors out . Fr·rin ··hat i!iiss Rohr :1as 

p r emise d t he writ e r , s he wi ll c me defi:1· toly undor all the "T)rovisi ons of our Co de . 

Ve r y trul y yours, 

CODE AUTHORITY 

LADIES I EAl DE G I DUSTRY 

1 a:;.;: Berke ;;i tz 

Code Di rector 

Encl -- Lis t s howing ove rtime a n d 

payrol l viol a tion 

9811 

' r 
-500-

Spe cial Inve.stiga tion 

Tile inve sti .;ation discloses tha fact tw.t this firm has two factories --

one an annex which employs abo t 20 workers. 

Workers were employed at rn. t e s b elov1 the minimum wage as follows : 

Date No . emplo;y:ed at Ho . errmloyed. a t . lJo . Hoine- . . 

. Tot8.l No . of 

30r/; -ocr hour ~O ¢ 1Jer hour workers . 

. Errro1o;yees . . .. . . 12-19-34' :. ''39 4 93 .. ' 

12-25-34 43 

1- 9- 35 39 

1-23- 35 42 12 

2- 6 .... 35 56 

2-20-35 61 ' 110 

3- 6- '35 55 . 14 120 ~ 

4- 3- 35 60 g,· 128 

4-17-35 61 25 31 183 

Annex: 4-17 6 8 18 

2 © 32~ 

Overtime 4-1-35 from 2~ hours to 24 hours per person 

4- 3- 35 Overtime was registered on individual cards. No 

entry was m8.de in the book. The overtime amounted to 

about $300 st~aight time • .. 

Me.x :Be r kowitz 

mb s 

9811 
01

_..\--- •il 

Mr. 1vhx :Be r:-;:owit z 

Co ue ~irector, Co c Au thority 

Ladi e s 1 He.ncl.be..g I ndus"'.:.ry 

347 Fifth Avenue 

New York , 1~ . Y. 

Dea r .ir. Berk o,.,i t z : 

I aw a ttachi nr; h e r e to copy of letter just r e ceived from 

Iv:rs • .rtol1r a n C::. I11J r epl;l ; I l :J.lO'' you : ill 6o ev·Jrythi:;.g- you 

can to comp l y with t h e reques.t in tl1e f i t a l parn.l;r:ri)h of 

her l e tte r. I ay~) ecia te als o that you are not t17i ns 8.nd 

ca:n on l y do 2- certe,il :~1om1t of the {~ oofl. work v;hici.1 ;yo a:c~ 

doing . 

DEH: sk 

I!hc. (2) 

~nies of Le tters 

9811 

Ve r-.r truly o'l.~ rs , 

O· cn A. Loc~;:e 

Assi st ant :Jeuuty Ac1JJi nistrator 

':!:'e:;d ilc Divisi01 
-502-

April 24, 1935 

Mrs. W1ami e ~. Rohr, -re sident, 

~he Virginia Art Goo ds Studios, Inc. 

1306-1310 Church Street 

~' nchburg, Virginia 

Dear Mrs. Rohr: 

Vle :b.ave your lette r o f April 20th, and a r e very ~)le ~ed 

to note that the recent trip made to y our plant b y Mr. Berkowitz was of such g r ea t bene fit. 

You, a s a handbag mauufacturer, are most fortunute in 

having such men as 1vir. Kerkowitz a:nd Mr. liittenthal di~ecting 

the Code of your industry. 

Vihile it is not for us to dictate, but is purely U:rJ to 

the discretion of t h e Code Authority, I am today writing l.lr. 

Berkowitz urging nim to comply wi t ll yol.1.r r e quest outlined in 

the last :)aragraph of your letter. I knm·; that he will be glad 

to do so if it is at alL uossible . 

DEH: sk 

9811 

Very truly your·s 

Owen A. Locke 

Assistant D€3 :r~ uty Administrator 

Textil e Division 
EXIIIBI'lj B - 1 ----------- r. Tr~C:_e Pr"ctice Com·)1nL ts Cor:uni ttec 

9811 
-504.-

EXliiBIT B-1 

CODE AUTHORITY 

L.AJJIES 1 IIAHDBAG I l' ..JUSTRY 

30 3 FI F1I'H AVENUE 

NEW YORK 

April J l , 1934 

Dr. Errl Dern HoHr>_rd 

Del)Ut y Ac"Jni ni str~ tor 

Dej_) C'.rhnen t of Cornuerce Bldg . 

Wr-_ chinc;ton , D. C. 

Der.r Sir: 

We her ewith p resent ~ res oluti on prs s ed b y the Code 

At.1..tho ri ty r.t r. mee ting hell!. C'.t the Hot el McAlp in, 

April ll, 1934 1 reque sting ruthority t o h r.nd.le F~ir 

Tr"-de PrC1.Cti ce com L1 ts in the first i n s t r nceca 

Vl e C'.r e r equesting thr'.t t h is be grnnted so n.s to 

j_) enni t t h e Code Au .. thori ty to expedite t he h r' i1dling 

o f t h ese c ompL' i n ts i nvolvi ng f r.i r t rt'.de 1 r r cti ce 

violr.tions un de r t he Code for the ind.ustry. 

Al.i: AS / s/ 

9011 

Ve ry truly yours, 

CODE A\.!THORITY 

LADD S 1 HANDBAG IliDUSTRY 

A. MI TTEH'I'HAL 

A. ittent ~l 

Co o.e Dire eta r 
:u~

CJ D:E' N;::·:IO_.I'!Y 

L;._rr:...s 1 FJuG3 ... c~ L'-1'S·L1Y ~-""' l 

lt~I F'l·:~ 1r;·~·r 

.... . .u ~ 

~j~~} £o:~( 

B ::.~ . !!: r r 1 i... c ~ r:. :·1 r '·' ~ rd. 

e~T.t~- .4/r.li ·ia tr··.tor 

:U e:_;,~rt :,1e .1t c!' Cctn. .r r~ c Jlf~; · 

il~s: ... i~ .~.[~ , D. C. 

De.""r SL·: 

A_ ·:·i 1 ll , l:·,. 

At < I ~(.e tL1 of t }:c cc~'·-. .A::thol'i t~·· for the L 

E:.:'.cb· ::· It.c -~...st~y :~cl ·~ . ~t t!:e '.otc1 ~:cA1 1i:~ 

A Jlil1l , ..,~'~ , t J.J.L . .c'o lo··:in~; resoLltion 1/'S 

C..i PS t 

~ 

'J.- 38Cd : 

11Ee it resolve.~~ e1'-.t tLe Cr;c.c A'..1.tllcl'i ':- ~r · sl: 

tha frtiJn~ l ~e c1y ~~in str tion ~or 

~u.tlw r i ty to ~. ~ncle t'1e ::i'"'ir T~ • ( c I'~::· cti cc 

c.om lri~1ts i:~ t:lC :::·irst inst- r.~c . 11 

Vr ry t r- ·.ly ~'o~ rs, 

OD~ p._·· ::· ·o_,..I TI 

L.dlJI :;s • HJ:..:. _ .:...;,.l! E ·:;: 1 ;s'I·R· 

.A.. .i : A / s/ A. ; . I '::'I ~: ·ry: ;_:ili 

;,, !.it:c:1th··l 

Co ·.e Di:·cct::>r 

.. 

I l'lt-reu·r certif tLrt t · c ·ov c rl.- ~oJ.~ tL .. .. 

s.:cr b,; the Cocc 

.. . ,""' , .. .., 

<·_L1.}: it"'U8 , "(; CO:.CCl 

rit ~ of the t .... ~ies 1 

'"" 11' .. 

;;-n:b- ::; 

·~ut~·oL 1u s t ~' . 

1~ / Ir·iA-. Sccr "'r~­

Coce Autr!ori tv L:--W.c.J 1 :i~nc._ ...... • 

L 1LUStr' 

S8ll 
- 506-

LrtA ROOl: 4039 LEO / sh 

S:EPT~ l1:0:._,R 27 1 934 

A k i TT:&ITI~ .AL C01:G DI IU.:CTOR 

LADIDS I :~.fu::UJJ AG COD:G AUTHORITY 

34 7 :in FTII A V~iillE 

NJ!,\if YO:::li( CITY 

YOUR TMDE l)RAC/ri CE COr.,iPLAI:NTS CQl..ILI TT~1 WAS ..A.PPROVED TODAY 

LLI G11 :;::; ORE 

ASSI ST.AlJT D::..-Pt:TY ADl\ii l l STRATOR 

TRAD:S PHACTI ~ COl.iPL.AI!t::·s . COI.LI TTZE 

OI\GAFI ZAI'I 01\ l,.~~nm 

rom·'L -- AT- r·- OCT·o·- -:J 0 i g"vl .:.1 ~ '. C~r' ·I , -'- ._\. J , J. ..:.: 

Present: m~-u-ai ttee i•lembers - LGGGrs. -1h1. C. P:.pt:~ , IIy Jurstein , Lrure;.1ce 

l.io ss Adrnini s tr ~ t i on ~ .• ember - 0 . Yi . Pe . ...,_::.·son 

CoL-;_e Dire ctors - A. h i t teuth'"'l , u:~x Berl':oHi t z 

xe tive Se cre t rry - Mo S. ~osesso n 

M:c . Ll i tte:.1t hr.l O)enec· t he r.1 ee t int; C' nc'. outl inec~ the mrpose f' nd t he norl: 

of t he Com!ni t t ee. 

Aamini s trr.tion l.1emb er , l.~r . 0 . W. Pe<'.rs0n, e:f:::-plrineC. t he o.uties _ of the 

members of the Cornmi ttee , nne-;_ t he necessi t~r of keepin;; correct nnd 

c areful records of Pll c r.s es b roucht before t he corrrni t tee f or r..ction. 

Cod.e Di r e ctor, Mo...;r Berkowit z , g[',ve P, brief outlL1e of some of the 

o.ifficul tie r.; connected ~-, i th the enforceme~1t of the l r bor provisions 

of the Code t:LS well r..s the t rrcle _)rr.ctice )rov isi ns . 

Execut i7e Secret['r;y-, hi. S. i.osessop, str.t ed t:1rt the most importo.nt 

wo rk of the conn,1i ttee wou.l cl be to us e mor?.l sur.sion in such c r>ses thc t 

the Exec-c.ti ve Cemrai t tee of t he Cod.e Authority •iere ilo t .n.bl e to rC::.just 

themselves , <'.nG. it w:'s no t the int elnion of t he Directors to burden 

this comli1ittee with the multij_) licity.of smr.1l ceses, but t o use the 

Committee E'..S a sort of Supreme Cou rt vrhe n all ~1e r nethoci.s fnil f o r 

thei r l.Ju l~pose . 

There nc.s c~ icerC' e L~is ussion pj.1Ct questions by tl~e uem'o ers of the 

Cor.nni tte e. 

9811 
- 507-

Upon mo ti o:: , uec tL1rr - cjournec ." t 9 : 00 P . i :. 

/ s/ 1-:io ses s on 

·e Se :ce ~ry 

Ac";ai·:ist l':->,tive Orc'..er 1fo' ~ 032-17 pert "inL:·· t o 

AJ.J _n·ovrl of P lrn nc"L Off icirlly .A hor zint~ CoJ.11:1 itt ee 

to~!~: C.1e T:cr 6.e P rr c tice Cornp 1-'L1ts fo r t b.e Lrc.ies Hc.nd 

r-.c; Il1C u_str~ -: r--s si .;:ae(_ Sept. 27 , 19 34. Tl1i , r1 emo ~11

l. :1 co:t:.sti tutes ym:.r of:E'ici..- 1 notif i cc>tion. 

/ s/ 

9811 

IJ. rr·. ]c:.. t1 tt , 

CoL.e .h.ssi s k nt , 

TeAti le ~ivis on . 

G. R. D. 
i'o r the 

CODE O:E' I J..l :R COi .. P~~~I 'l'ION 

for the 

ARTICLE .L : OI:GJT IZAiJ:IC~i OF 'l· ... -AL:L FR_Li_C':CICi, COl.iPLAilT'l'S CO!U.iiTTEE 

r'.) The Cocce At,_tho:city· sh<J.l ,~ r-nize ,-- ~T:- tionf'.l TrC'cJ.e 

Prr- ctice o,_~:; ~ir.ts Cor:1 . .1i tt ec . Sr'.i C. Cm.1I .. i ttee sl1:·.ll be F'.p)oi::lted by 

the Co0.e At..l.tbo::ci tJ of the 1 :-c.ies ' nG.br~ I rJcustr;)l". S.::.i c1_ Comui ttee 

sh['.ll <'_)_._J0 Ll'c ,"n ~c"'.eql'.C'te of f ice l'.i'.C.~. field. str..ff tor the effective 

pe rfon:2..11Ce c f 2. t s Cuties , u.nclcr ·~he Code. ic". Committee shr.l l a lso 

C:: • .P .. '0 L1 t :-. l e._," l ; ,_J_vi s er r nd ~xec1.1 t i v c Se ere tr· :cy , ,-•r.o Il<'.y devot e 

part of ::is tii.1e t o Coe.e Ao.tl:ori ty dut ie G, th :i.~ the11 tl10se of t he 

Conu-:1i ttee. The C::>umi ttee shC'.ll be so co:r.:,.sti t uted <'S to repre sent inso fr r C'S .' Y<"'.ctic:-·b:e, the cliffe:r. ent ; rou1Js <"'Jld L1terests of t he InC:::. ... s try . It shrll- .e 'C.~ m[tll enow;h to iU...'1Cti on ef:::e ctively , Fnd its 

members sllo.ll be free to t" i v e ne coss,"1.r'i t h1e to the no rk of the u tl 

Co;.li!1i ttee. The Cm,;mi tt ee shl' l l m<"'ke full use of :··ll <'V<.il,..,_ble E'.nd 

suitC' ble ~~c iliti es of nrtion~l , re~ion<'l r~d lo c rl rsso ci ~tion in the 

InC..ustry. .Al..,_ Ah;tini strC'ti on iAember- of the Code Authority shr..ll be e>. 

member of t"1is CotU•1 i t t ee. He slwll :l,"' Ve no vote, but shC'll h r..ve ['. 

veto, -::ubject to n .vi evv by the liJ:-·tiqnrl Irlcu striE'J. Recovery BoC'rd. No 

partJ intCj_'cstec i n r' cr se shr.ll sit on this Com;ni ttee. The remn.inirlg 

members cf t:!.: e Co;;u.ti tte e shr'.ll elect rn :dequr>.te number of empon~ry 

me1:1b er s to .. 1,...,kc 1-t,l <'- ~u.o rULn. 

b) 'ih e NC'.tio:t1rl Tr~c e Prct::.ce CoDj)l· .... ints Com-:1ittee shell 

e lect <. CLC'i:t'l!lC'.n f:.:·oo i t ··J own umi1-;.;e r '.;h ip rnc\. 3hr-1l f i x t he time of 

re ~u "' ::c r:-:1( s:>_)ec ~l meetin?;s , ond. the m2..m1er !-~ v<~hi ch such meetings 

~hr-.ll be c;-:;.lec' ~;H . c ono.uctec.. The E:i-eCiJ.tive Sec ... e t r ry of the 

Co1mni ctec s:nr'll w['l:e " r eport C'.t !" ll meetings the:ceof , of the cpses 

h C' ndl e(. ·oy t~le s ~" ::;:'f in the int e rvr'l betwe en meetinc;s , tose ther 

with"· st..-· t euent LJ.icr in ~ the (ispositio:.l of rll c nses close6 .• 

Secti on 2: I\·.:.1c'cions o f N,...,tioil< l Tr!"'c'.e Prc..,ctice Cm:1·1lt'ints Cm1rr.1 i tt ee 

£<.) ~l e ~-- tioncl Trr'<:'ce Fr:-ct:ce or~plC'in 0 Conmi ttee , 

throu:;h (_i vi !:~ i o:' C l ('llC'1 SUO- C.i ViS i 0 !1( l COL1l1i t tees , ShC'll };p_ve jurisC:ictio:i:.. over ,:.11 complC'i:r.ts ll ··; in.~: viol£<tio:n of !:'.ll )ro visi or~s of 

the CoC::.e , e:-ccert A· ticles III, IV, <-J1C. V of the Coce , \·.rhich reier 

resp ecti vel~~ to : 

l. h.ourn of 1~ bor 

2. L1 init.mm VIC'.., :e :; 

3. ll'bo r ~revis ions 

9811 
.:.>rovi• _c, _ t~J.":G ". C'"lt.l l~ nt by 0 ou~'et i t or ,-, lle_;in·, tl1nt C'n em~>lo;;,-er 

i s violrtL1_: <. l roo:c :):.:-Jvisio.1 of L t. (. Co C.e , mr;;· bE: lY n l lec1 -iJy the 

1 :--'Jor Co:.! ·l. i lits COJ:h.littee , if <;lee: . hFs ·Ler lt or ~" J.1izec1 . 

b; S::: >e Cot Jlli t t .ec in L1e con t _u ct o~· i tc· ;or~: rt1 .' : 

l. Pro ;o"c to t:le ,..., ll" ro):cir-te :-- ~encie" , Ja C:,i:fi :~ ns C'ncl 

of ~m.:n(~Ie::-~s to .:. e; Go(e , n , ic: nill fpcilitrte com)lir nce ac tivities; 

2. i:<:e r ecoL.c !e nc .. "tions t o tl:e ' :' J:cop:c i ::.t e 'l ge~1 cies for 

exeL ,.lJ ti o~!.c; --.:·11:: (.;:i·cc >t::.ons ; 

3. =~Plce ,.. C.1'1 .e:;~; )l .... J.1(ltions r~1c ~ e"'q)osi ti o11s of 1J rovisio11s of 

the Co _-e <'G 1Y~.- uo re c_ui re;C_ 0y tl1o C"'ses be:Lore t 1le1:1 for 1:is Jo s nl or 

1

iJhere S':.Cl: e:::::_:.ll' l1['·tio1.S rl1lc e_.;:.•osi tions rre J ertinent to t he ir HO rk. 

c) ':L'h e Col!JLlitt e e sl1rll lY·.v e. :t;li-,e resp or!.s ibility R..YJ.d Lh.J_ t y of 

i ns trn cti o:: r.nc~ ecl1. r ti on oi 1crsons subject t o t :: ei r .jusricii ctions, 

<s to t~H .. ir ri._;hts .!'lH ob li .c.~:- io :n unC_er the coct.e ; the investi go.tio11 

r-nc.. ".,.ju:::>tde:t1t of comyltLltc; of non- cm.mli<'nce L1 t :1e f lrst ins t r-nce ; 

rnu the :cent".i ti on of the r e_tJO rts to the <'P )ro_;:;ri :->.te 2.c;ency in C".ses 

vrilere it 1lt S beel1 i111•JOSSi Ol e t o S 8 Cl1Y8 CO lTil) lirl~Ce . 

C.) IJ:lhe C01:nd tt ee .Jr..y estC'.blish civision<'l P.nc1 s ulJ- c:.i v i siolYl 

Tr,·C:.e Pr<: .c tice Coi,p l"iEts Cor..ti.Jittees for S_:_)ecifieC. territories ? l1d. 

purposes. 

e) ~~lE. Co.:Jni tt ec sl1C'll i ssu e L:tstructi o:a. c.nd ree;-ul 1 tions, 

cle<.rl;y l

1

.6 f i1JL 1: it;:. rules to the (ivi>i onc-:.1 e n cl. s uiJ- ciivisionr l 

co.rrnitt e;s, 2.nC. i s er,1po"J'er crl to require re!)orts , so tlyt it m, ,y be 

fully rC.v iss( of the Y) ro,o-Te~;s of trr·ci.s c onPJli <'nce ,.,ork 1.mde r the 

CoC:,e of :::'ril" CoDlJ eti t lon·-'for t he LNLi es 1 H~ndbP{'; Inc.1ustry. 

f) ~~le Cocmi ttee shC'll ~v ve full chC'.r2;e under the Co G.e 

Authorit:" o:::· tl'['c'.e conmlir-nce r.ctivi tie-:: , F'.l1C~ shr.ll ( irectly s uperc i ::; e · .:.1c. co ___ trol r l2.. :Uivi ~y l c-11( S,,;._iJ-.divisio"1:.l Trccle Prrctice 

Coit1ph'.i:.1t;: Cm:1.1i ttees estc--ol i .;J-:et1 hereunci.c:: • 

. r.J J-j1 ~l int e re: t ee:'. }JP rty to [. Cur1J):;_t"' i T!t 3hC'll 110 t be ~erm i tt ecl 

to serve 2-r: r.. i·te.6oe;r of the C01,1r.1i ttee he, rin_; r;uc: .. comlJlC'.int. 

Section 3 : :lhvisioric- 1 , nC.. Su-o- Divisionr>.l Trf'..de Prc=>.ctice Com~)lF'in ts 

Co1 n·,1i t tee::, 

''.) I::.; t L"' orc; ~ni z ti ol of such (_ivision<'.l c::.nC'c s-co- c. i vi:-3iOllrl 

c o:J1.1i tte::;,_, evcY7 eff'o'rt r;hc.ll be mc.Le to secure repTesentpti on 

L1 ·; or ,~.l~ ;:-r· ::. ·~: )rpcticc- ule , of the C::.ifferent gro ~)S r1.nc1 intere ;; ts in 

the L1C.ustr;;· , <.ill:. re.JresentC'tion o f the J Llb lic int eres t in C1 mr nner 

sbJil<'.:c to t h<.t .:.c:1ievec,_ thrO'Lt.:h ['l)·Jo inti1ent of " 11 ."uninistro.tion ·> -

member to t:1c CoC:e Authori t :; itself. 

b) · l..Jiv i ·iow· l : ~ c :.;u·o- c . ivi::;lonr1 '.i::.· ,- cl.e ~- :,::· c~ ic o Comp1Flints 

Cormnitte .s s :;h;.-,11 elect ." C:n,..- i:ti-:c::..l i'ro :1 t l·l - il· o· ·n J.tc:;luershij; , ('_nd 

s1(uject ·co tl1e [·lJ >rov.rl of ~,;i e ~-r-t-iOYl'l J:r-~ e Fr·--.c,'cice CO!,l.:_Jl'l_ints 

9811 
-510-

Comni tte e , shall a do 1t rules of l)rocedure and by-la11s. Said by-lans 

and rules shall. provide f or :;eriodic meeting s of the Committees at a 

p l a ce conveniently loca ted, so as to give p ersons having business u ith 

such CO iilL· i ttees, re a sonable opportunity for he aring , The Executive 

Secreta r y of such cor. ,:.li t t e e s shall rep ort at all meetings the reof e. summary of the cases h::mdled by the st a ff in intervals between meetings, 

t ogether with a sta teraent i ndica ting the G.isp osition of c~ses which have 

been closed.. 

c) Divisional end Sub-Divisional Trade Practice Complaints Com- · 

mittees sha ll submit to the Na tional Tr ade Practice Comp laints Cownittee \reel: ly rep orts of all case s, and the dis) osition thereof, arising 

before the divisional and sub-divisional Trade Practice Qomplaints 

Cpmni tt e-es. 

Section 4: Fu~ctio s of Divisiona l and Sub-Divisional Trade .,._._, ... - ~------. ::.::: -- ... ,. .. -=----=-~ .. ..._-.. ....,._ --..~~-

Practice Comp +. .!.n.:L~ J2.9.F .P ~~e ~Ji· 

a) All Divisional and Sub-Divisional Trade Practice Comp laints 

Committe es hereu...'1der organized silP,ll have juris diction over all comp lc:dnts a lleging viol a tion of a ll provision s of t h e Code, subject to 

the approval of the }~at ional Tre,de Practice Complaints Committee, excep t Articles III, IV, and V of the Code, ~hich refer respectively to: 

1. hours of l abor 

2. minimum wage s 

3. labor provisions 

provided that a comp laint by a comp etitor alleg ing that an emp loyer 

is violating a labor ;1rovision of the Code,. may be handled by the Labor ComDl a ints Co mr~ i ttee if such has been orgardzed. · - . . 

b) In the conduct of their '.7ork, such clivisional and sub-divisional Tr a de Pra ctice Comp laints Com11 ittees may: 

1. Prop ose t o t h e appropfiate ag encies, modifications of and 

ame ndments to the Code,· ·which will f Rcilitate comp liance activities; 

2. Ma.l.ce reco11neadations to the ap:prop riate agencies for excep tions 

and exemp tions; 

3. Hake such explanati_()ns and expositions of prov:l:-sl.ons 

Code as may be required by the c a ses before them for disposal 

such explanations and expositions are pertinent to their work. 

quests for interpret ations sha ll be referred to NrtA. 

of the 

or where 

Rec) Divisional and &tb-Divisional Trade Pra ctice Complaints 

Committees shall h ave the responsibility. and duty of instruction 

and education of p ersons subject to their jurisdictioh, as to their 

rights and oblig ations under tue Code; the investigation and adjustment of comu laints of n on-com·o liance in the first instance and the ~ J: 

rendition of rep orts to. the appr opriate a&ency in cases where it has 

been im ossibl~ to secure comp liance. 
- 511-

Section 1 : .~:_ ::'L :I S:'I 0_- OJ? GOl.IPL I A.TCE 

Cor.1:)1L n ee c: :' u.,e c h e.ce i ·.1 inc l u .e s : 

e.) 1;1e i nst ruc ti o : ~ n ... e d,J.C:_· ti on oi' ,Je r sons 8'\.l.v je t t o t he 

Cod.e co~ c e :c1il· . . :tlk ir i'E:"'~-·o ·l ci J:i. J. tie : t :!er·eunde-r so c- s to Elnticip c.te 

and c:,v oh -:.. C:Ji·1_:_) l:•Lns of non- c om,Jl i c: .nc e ; 

'b) Th e C'C t..s ti 1€ i.1_t o1· co .:_J J. ~il ts o f ~-:o r:1J.Jl i."'n e by e o.uc a.t i on , 

i'inC .in s of :Zc:.c t , r:r.. C. T'l r Gssure of o,:Jini on ·. ·i t '1i n the i nfm s try ; 

c ) :L'h e rc.Jr.str:lE'jlt o f <...r~' p')J. !· !ts 0:,· c:m1c i ::. ie.tion , ,:~e C:. C" ti on 

r n d ~rbi ti o~ ; 

d.) rr~ le :..·c-.c.itiOi.l o f 1.2 '- :ct f; to en :;: o~ er..e nt El benci es of t he 

Gov E;rrue::c L : c <.s e::. ":~l .c e · P.lJ o t }: c)T .1e ~n s ~1;. e f :- i 1 ed. 

J - tl"2 C~e ,:_·2 c ti c e c or:tp l FL1ts f or · . .-1.1 1' .O!' GS of t l1E:Fe i'e "';1.'.lnti ons 

sh F' ll "ue ll...i.'! · urstoo ·. c om,_) :.ri:lts ~' h C" ll e vi ol o.t i v::l.S · :~:co vi ons 

of t re .C ol .e , o t her thc-.r: Ar ti c l es III , IV anr.:_ V ~Jhi ch Articles r e fe r 

t o (1 ) ~m. s of 1c:·bor , 2n l'. (. ~) r,:i n.:.mura rvr -- es , end. ( 3) Lvbo r P:.:ovi fi i ons , 

p r ov i C::. eC. tl:c t :--. c o:·1)lri n t b:r < conp e t i t o:..· c- 1J. e ;inf5 ~1 t rn em) loyc r 

is vi ol:> t iE ·; <'. l c-b-'J r _.) o~ ol! of tr:e Cod.e .. tC.c'J b e ha nC: 1 et' c:v; E.L t rt-d.e 

ct ic e C.. E1~ lc-.L1t . 

Co .• )J .... i ·:ts of Co :'..e ' ' i ol< tion 1nv.s t 'b e filel:. i n '.'lr i ti , p r e f e r rol y 

on the s k 1, :- :t c'. f ol'm "p- ro ec:~ by the Code An t hori t ;y- , C..O ')i e s of nhi ch tnF\ i' 

be o b t .: i 11ec' 1 .. ou r n;; f)i'·e .1 c y o f the oc~ e AL.:.t'!l.oT i ty. Anon;ym0us comp l n.i n ts 

•ill b e c.c t c; C:_ r._Jo ~1 11 ~r i 21 the r· i scre ti on oi t he Com)lri n t Cornm i ttee 

re c e i vii:1 ·· ~_;-_ l~ c o!'!mlc: L'-t . ~ •• 

Com) l 2.i:1t ::; rn , r l 1 me t t e rs :D ert " i l·. i n,; t : c reto sh< ll b e tre e?. t e d 

s trictly ..::.o :E' iC.c!! t irl uy the Comr.1i t t e e c to ,, 01.1 ~1c y er e r e:;.'e r ·ec1. 

Secti on : 

..... l ' f . 1 t' .. t' T , . I II d' I d. t c d v Ol<J.J __ :-:-c ~~ o v 1 o r ~ 01 Jte .w e CLl C-s en or.:; . n ns r J o .e 

nu st iJ e ~l er , ::..n th e :r i::.·st ir'!st['_nce , y·i th t Le <:) Jr op:..· i n.te :Jivi o:: ioiV'.l , 

Su b-:::Ji v .:.:-,; .:. o .. , l , o r .l::e_;i o,·l<' l Com:nl e int <· Cocn.1i t tee , c.· nci if such c om1)J. i ·t:::; 

re sent ol·i L :c.::.1.: t o [' ,. o tb e r a ,e n c i e n , t GY shc:Lll b e :c ~ .. l c.eC:L 

mn tl ·co the [ ~' lrODl'i.::l te ()o C:..J . CoT.lp1 --j ~ seht C.ire c t to t he 

L<d.i e s 1 } ,"'ii.G.i) <' - Ir.f~_us t:.. ·~r Cot' e AL;_t h o r i L. J o ffi r.e in lre ' York Cit:· ;~ ll 

be l'eferr eC:. i:.u. "' r- te y to ~e o )08l~ ~ .. i v i:-io:.r l , Sub- Div i sion <" l or 

1 egioncl Co(.1_? J. ".- :1. t s Co .1r.1i :. t eo? . 

Secti on :S : J.-o tn.:. :< he l~ L" s:l<"l 1. J··:c.-; .... !t ~- E co. ) .< :1: :·.t - t rn:1 time 

fr om E< l_Je :--.1 _.,_ ·co t l. e l:"" c t:.o!L l :t.cC) ~e ::. y c: .i: C~ : i o;". ··•'1ic11 sh, l l 

h c: v e ~~ , L1 c. t '· c." i "' CI'(;t i or. , t. o r e f er S"L".'-h cor.nJr:L·-.ts tor 

9811 
- 512-

higher ag ency of the La dies' Hancl bac; Industr:r Code Auth ority ui th a 

rep r e sen t a tive or re e<:" ent ti v e s of t h e Kat ionttl Itecove rJr Administra tion 

included t he r e in, or to t he La di e s' Handbag I n d sutry Code Authority , 

or to othe r Comp liarlce .Agenci es of t r1 e :a tio l1al 2ecove r y Administrr.-.tion. 

Section 6: Ii. FORNATIO~: FOR ALL::I:GED VIOL~~-0 :::1 ~ 

Th e La dies' Hanc,bag dustr~r Code .Auth ority shall p repa re immediately 

a sta t ement entitled "I nfo rmation for ;_) e r s ons che.rged 1.:i t h viol::.tion 

of an i.ffi.A Code 11 • 'l is st.'"' tement shall se t f orth clea rly t he rules of 

p roc edure in res) ect to a ll eged co de viola ti on s, anci L :dica te t hat the 

allet;ed viola tor i s entitl ed to heari ng a ncl to a~ eal from an,y finding s 

made b:r a Com-·Jlai n ts Comm itt ee . The sta temen t must also indica te the 

p roce ss r vrh i ch a cr.-.s e of co cie viola tion re £'.ched t h e National Recovery 

Administra tion and t h e va rious cours es of e.ction nhic 1 may be taken 

t he r eoi1 by t he Administra tion. 

Se ction 7: OC DU E OF DIVI SI Ol--AL iL.ill su:a-DIVI SI OI AL COL:PLAIETS 

COf.'il tii TT~E S I l:i H.Ai-l)LIFG COl.;pLAi ri'JlS 

a ) Immedi a t el ,7 u•)on t heir recei 1Jt bu Di vi si o11a l Sub-divisional . .. ~ ' 

or Regi one.:!.. Com·olo.i n t s Co:nmi t tee s, comp l a ints rli ll be examined by the 

staff ~1 er eof, n.n d Hhen su ch p r elimina r y examination ic s that ~1 e 

f a cts ll egE~ , i f t rue may con stitute a viola tion of t h e Code, the 

com:9l a i n t shal l b e f iled and g i v en a comp l a i n t number. A~.lm 11 le dgment of 

t he com:ol ni nt , o.n o. 8.dvice con cerr1ing t h e com~J t number &1all be sent 

i mmedi a tel y to ~1 e compl a i nant. I n t he even t t ha.t t h e complcdnt does not 

sta t e suff ici en t f a c t s to constitu t e a violn.tion, or t ha t adc.i tiona l 

f a cts a r e n ec e s sa r y for de t e rmi nc:.tion r:hethe r the Co de h a s b een violated, 

compl a i na n t shall be r equired to furni sh ad.di tiona l i nfo rmation. 

b) i7h.e r e a co.nDlai n t i s obv i ou sly 11 c ra..11l: 11 it shall be 

a cknor1ledge d Emd Iii t h ou t furtl1e r a c tion :Dl a c ed. in the file. ".1h e re 

comp l a i n t st ates f a cts nh i cl1 ev en i f true n o·u.J.d not con stitute a. 

viola tion of the Co de, a c:.:no-:l e de;r.Jent sha ll be made to compl a ina nt 

n i t h notice of rejection , cco .:_JE~n d by a bri ef e~ :p tio n of t h e 

rea sons the r efor. 

c) -:-Th e r e a cor.p·Jl a i n t h t:ts b e en a c c e"? t ed and. a ll aecessa r y f a cts 

h ave been s ecu r ed f r om compl a in3nt, it shall be E'.ssi g ned to a sta ff 

membe r f or i1· r and investiga ti on . Tl1e f irst step in such inquiry 

a nd inve stigation i s t he ·p rer)ar a ti on of a bri ef st :-> . .t enen t of t h e a lleged facts f or trans:ni ssi on to t he re roono.en t, advisi ng h i m of t h e 

Article of 1e Co de a l leclgod to be violat e d., ancJ. .:-.~J g r eoue st for 

ro t advice as to r:he t h e r a ll or nny of t h e fn,c t "' alle g ed a re true, 

a nd a f u rthe r st.- teu ent of t he )Osition of t l1e r es·,)oncl en t. Re spondent shall a l s o be furnis~1e d u ith a co:)Y of the Code a nd. of 11 Information 

for Pe rson s cha r g ed. '17i t h Viola tion of t h e La cH e n 1 Ea n dba;?; Industrr Code 11 • 

Se c t ioa 8 : .ADLI SSI Ol- OF VI OL.ATI OF 

I f r es'Jon 6.ent a dmits viola tion of Cocle, but i nC:ica t es e i s 

r! il ~ to CO! :)l y i n t h e fut u r e a nd has m;.1 de restitu tion fo r past 

9811 
- Sl3-

fo:tat"ions, ·ccrnp l ±n['~.n t .:.hctll be no tifi ec... of such c...d justrnent . 

Se ction 9 : D?lZit..L OF "IOLNI'ION 

If thE: rEs)ondent deni es the f:-cts ns oll egec: , or if he ac1mits the 

f<cts but t8~::cr; issuers t o tl~e r.1e,.ni ng of t he Cocle , o r if he t-ss erts 

that h is 11o t subject t>ere t o , or tr,."' -c t l:.ere i s !1, o;~flic t of codes, 

o r if the es~on~en t fri ls t 0 srtisfy the Complrints o~n itt ee thnt ~e 

is no t viol atin g the Code , he s~:oulc,_ be noti fi ed. t o ,. ~J e . . r r:.t t he offi ce 

of the Div isiol!< l Sub Divisior.~ l o:t· Rec :-~.1 or.~pl.~ ints Co·m:1 itt ee and 

stt' te his c c.sE: , vrhen such <.n i~tervie•:; seems e:xrJedient <nd. likely to 

f vcilitr'.t e r .. l t::.~.-~j r.en t. If no intervien i s held, or ii' n:t'tcr such 

int e rvi en t -:1e ~:.se i s s tiJ.l mt'..djustec , "'nec it r.p_:>E:rrs desirr.ble fo ro. 

field <:.gent to visit t~. ::c espon<lent , <.rr, ngements i'o~: such n. visit shn.ll 

b E: .c:de. ~h P- fie l d. (;nt , i 1 :-cl.( ition to secu1·Ls evi C.enc e shr.ll seek 

to brin.; c.to1..1.t ."n ."'~..-.j st: ,c; nt ·rith the r e sponc".ent _i_f it r..y,pe;-rs warrc nted. 

If efforts of stt'ff nembers rnd field. c.ger: ts ::.re unsucc essful in 

securi1 s;:; i <J_ .n_l,iustment, thP or,pl<~in t sht'.ll b e set for hec:·ring 'before 

the proper CoE.p l ~ ints Cot'll :itt ee rnd bo th t he Oomplninrn t <nd r espon dent 

sh:' l l be notiii 2l-c t11ereof by rebister e o. rnt'il. If, a ft e r such h e c..;.rinc; , 

the co::'l.p].. <'.Llt i~:; s till u·~·u'. .j v.s ecl nnd f urthe r ft-cts or Iurther intervie'·'s f'..l.)_:Jenr lE:el~r to f nc ili tntE r.Ctjust J ent , r rr .. . 11gements may b e macle 

t o l~A. e e. fi ole!. ngent visit the respon6.ent. In c::.s e of cloubt o.s to the 

me::ning oi th e Oode , o r as t0 othe r fr:.cts , w offici n.l ruling shnll be 

obt: .inec'. fro!n the rpproprintE. source. 

Section 10 : . :b'A"l:LU~1E TO ?..bSPOJ D 

If r es1Jor..<ient fails to rns·,,,e r c ommunic::.t ion ''dd r essed t o him 

within five b'l'.siness drys a <> e c ond cm:u,rUJ.!i c ation o..ski ng f o r c.. r ep ly 

within fiv e Ol..<.sL:ess dr ys shrll be s e11 t l1il. by r ebist e r ed. mt:.i l. There-

~fter i f no reply h~ s b een r~c iv ed o r in any ~se if r e sponden t i ndica t e s ~1 is U1l'.'lillL1.sness or c~ c o: i nten ti -:m of c 01npl yin.; , or o f 

malcing resti "'L.ution , the c~se sh· 11 be ._,ssi 6 nud t o . fiel0.. 1.gent for 

such furthor invc:: st.ig.".t i on , r: rw'.y be ~1eccss"'ry to c: .. e t en:'line th e f ncts 

of the c asc :--.t :r:rst hrncl. 

Section ll: l:E?:c"F..:-::~ c::::; ·o? CAS~S TG EIC,J§?. BQ::.,IES 

a ) After r.:. vi n~l , Sub-Divi:, i on£>1 or Be.::;ionrl Compl,"'in ts 

Corruni tt ee hr.s eYJ1C'.ustecl ::.1 1 rensont'.blc effo rts in r.djusting my c omplC'.int th:couc:;h int ervi e ·ts , herring:~ , f i elct inve r.;tigntio·1s , e tc., " nd 

the c ornpl :-.int is still u nncljuct ed. , it m"'y be r eferr e<i t o the rppropri -

r.t Ff't o::.~.l Co.:ll)l:-.in ts Committee , t ogethE-r ::i t h r e c o:-:n:1end"'tio:-1s J.o r 

.i'u1·t e.c ;,ction. If r-J1Y ny time c:ny ComplC'ints Commi ttc'-' is c onvinct.-d 

th."'.t " complf'.: nt co:1cl usi v ely sets fo th a vioL...,_ti on whi ch the r esponc..ent :>horn; no c'.icposi tion to correct o r t o t'.C:ju:::;t , such compl i ~nt mny 

b e ir'llne6.i ['l.tely r efe:..·r e d , togt3ther ·:Jith the e-ntire repor·t , t o the Nntio112..l 

Complf'..int s Cornmi tt ee :1i thout follo':Jin:: throuch the rec-::;ul ,.,_r· pres cribe d 

routine , c.nc::_ the ··::;.ti onr- 1 CornpL'L ts Cornnli tt c e ~· hr ll rei r it 1Homptly 

to the N"'.ti 01lo.l REcovery Aeuninistr:'.ti o! . 

b) Cr.:.ses sent by r. cmj_J ~in !~ Comr,ittee t o, ..... h .:. gh _r boci.y 

for furth e r n ction r.mst include the follo·:Ji:1J: ct"t..,.: 

n0 11 
- 514-

( r) The o ri:, i nr 1 cori}-i l:- int :--n~.."'.. C.i (!.'8:> t of t hE: c~ se . 

( b) All p~e vi ous orre~~on~eucb o~ t he crse . 

(c ) All o rit; i.r l eviC.::_ence , i Hch:. ix; r'f :.: icl~vits nd 

re~o rt ~ of f i el d r~e~t~ . 

( d) omTJe~ c.r ti ons of t he; Co:Tplir.n cb o1~1..r.:1 i tt e e . 

(e) St 0. l:r:1en ~.; n.:.L:.e by the c'jpo:1cce~1 t ~. t ile.~rings 

or il"'.. t e rvi cJ, rm~ :-- n: · ··ri t t c:.:1 s t r· t emcnt s fi1 e a 

by l1im. 

A r epo rt o: t h(. Co::'!1J) l ·- i:1t s m:~. tt~.::- t h;> t 

~o nd nt ~~s nisLe~ it h notice of the 

comp l rL1t :-n(~ ro n ex~]_) ..-lv ti o~1 of his o blig;,_ti ons 

in r e s pect t o tho subj Gc t tt r of the co~ 

plro i LJ. t; r c opy o:f t he Code ; t' .. c opy of the 

Lr.di e s 1 lh n dbr'.g Industr;y Code informr- tion for 

pe r sons ch ge& ith Vi ti s of the Code ; 

:--·. surn1nr.ry of the f r cts , .. i th r e f erence · t o the 

viol r ti on s f ound. by the CompL:.i nts Committee , 

, nd [·ny oth er pe rtinent f r'.cts. 

=:e spol ci_E; nt ,~ t :-' l so b e no tified. of r e f e r snc e of - ny c ompl ro.i nt 

:'gr'.J.nst h im t o ~- h i r;h e r bo C.y f o r furth (.r :-- ction. 

Se ction 1 2 : PRO CEDPRE FO?. !IAlTDLI FG OLiP :, .AI~ ~S BY 1-ATIONAL COI.IPLAIE;_tlS 

co:.ii ii :i! :..:: . 

r..) 'Jpon r e c eipt of c•. c onpl ri n t r c f err ec". t o it by Di vi s ion;:.l, 

Sub-- vis o:1~ 1 or ?.€·o.:i onr•.l CoLrni tt ee , o r the N:-'.t ion r- 1 T:rr..d.e Pr['.c tice 

Co:npl .".L;.t ·; Cor.lTili tt ec or t he 1.-,,., ti on-l L::b o r Complr.i nts onrr: i tt ee , f'.. S 

th e c rse m.r.y be , sh; .l l so no tify t he com}Jlri nf'.nt .~ cl r espondent. 

The J. e:>po~ l~e:1'c s:n 1 b e :- clvi sed ~ ft e r :-- l),Y:copri n.t e e xrmin0.tion of :the 

com[Jl c-.J.. nt th:-.t u nl e:-; s he hr s ; c.~c~ i t i o nr.l f:-- ct s t o submit o r unl e ss he 

cle si rec c. r e- he·w r~ t he c r.se '::ill b e r eferre d t o the 1-'r\ti o:<.1r.l Recove- ry 

AcJmi l'lls t ro.tion • .. 'i t h c- rE..q"L:.est for l eg" l "Cti on . 

b) I f t he respo n(~ ent r cl)li e s t h·- t .t-> ::.~ opE: r r..cl jus tms nt h;o.s oce11 

m," de t h€ crcse sh r ll b e r efen e( br.cl:: t o t :u> Com!llr-in t s Cor.1mi tt es ·:1l ere 

it ori , _ _;j.i.-1,:.t eG.. If r es:;JondE..nt s u bmits fur t h - r f- ct ~: , o r :c eque sts o. 

furt}::..e' _1.e".ri nr; , t lle C".s e sh ll be C.o l:e c fo :c he.:-.1 L1g oy the Exe cuti ve Se crek'.r;:,r of t he F0.tion:'.l ComiJli::n ts COinmi tt ee. If r ft or tho 

hcr.rin.:; t:1c r c s·;_)onclcnt fr.i ls t o c or:1ply r:i t~1 t he r djustment p r es crioecl 

by t :1e l~rtion.".l Compl 0.i n ts Committ ee , o r t f t'_ t r- ny ti!:l.e the Comrni tt ee 

is convi~ et h~t the r espo ndent sh o~B no di sposition t o correc t or 

r C'_ j u'Jt the C".sE. , it sh n.ll b e refLrr E:: d. t o the .~. -ti oi. r. l Re cove r y AcJnil:istrn.ti on to,::, other ~· i th r•. sUlThiJ.~ r y of such re c omnec1CL".ti ons r.s t he Co .1n i t tes 

m:-' y c:.esi r c t o m,J::e. 

c) Ll t her p['rty t o :' ;~.ne sh['ll hc-.v e nn unrestrict e cl. ri(;ht 

of "~:Jl)GC'.:i t o l-!1\.A f r om t he nc. _ings of t h e N"'t i onrl i tt ee. r.i'h e 

n -mes ·-j.1l. ><:'.r t ie--; t o t he cr•.s es "' nC .11 f· c t s pe rt .~ i 111 ng there to shr..ll 

~ ~op t o~f idcnt n. . 

S€ctio:c1 13 : PQ-,{GR 0? li ODI ICA~I Or OF. ABOLI TION OF SU90RDi l'

1ATE 

AG:r.:~ TCI :SS. 

T:1c Co c"'..c Au thority sh "'.11 h0.v e the po'.:er to re1nov e .:--.ny membe r 

9811 
- 515-

or , e:ab crs of ;:-_ny subor('t.in:'te r;enc y •· .. ose r.ppoL tnKnt or e l e cti on 

rests :Ji th the Colie Auti. ori ty , or to r:1o~ :f:. t he functio ·1s or to t'bolish 

entiTel;;- r.--:1y ~ .... ~E. nc~ , t!-H:: crct'tio .. of ··:h.iCD r ' :J t s ':Ii th the Code Authori ty, 

ir·, i~ the juDgmen t or' thE; o(~L A-c..thority , such l'..Ction n ill p romot e 

just " DeL ei::'i c:!.c:.nt rC:Jnin istrr.'-ion of ~ny code funct i on ; provic.ed thr.t in 

no ev ent sh.:--.11 the Coc c Autl!ori ~ h.:-·.v e tl·e po·:·cr t o re:r:1ove ,"n;y r ep r csent<'..tiv 8s o f lrbor o:~ Lrbo r Corrrpl:ints Co:11_it t ecs. 

Tne ex:pe~1..;cs o f the !!1enbcrsof thj_s Cor.1r.1i tt ee s}l:-ll be p~ io. ·oy the 

LG.<ii es 1 H.:-:1.ci.b::..,:; Industry CoC".e A"-ltl.ori ty on r milet'.gC r-:16. ~)Gr diem brsis 

equrl t o "C:1.".t ::?~".ic~. to t he rnd,1-b<.-·s of the H:;.d.i us 1 H".n .. br~.·· Industry Cocie 

Autho:ci ty. 

·,· c:1be::s of thc:;e C I)L!.,':li tt -._ s s~".ll h:-:v, t~wir .s::pe:::ses p" j_d by the 

~p~)rorn·i.:'.tG Ii~.risio:1 or un th e~ s"re orsis r nd i n the ~r.1c mn.nner ~s 

otl:er'.Gocle _...,_ C~j,1iDict:c:-·tirb Agc1c,:; o.~JJ_ i tt ces in the srr:1e Di';ision or 

SubC:.i-:i sio::.1. 

:·he Lt'r'.ie;r; ' ~!rnc1.br- -:?; InC. 1stry Col.c At.'.trwri ty sh,~l rn:-l~ montly 

c:1o rt ~ to the rrt o~r l I1clu.:;trir:.l Recovery orn~. settin0 :rorth the 

nur.1be r 0; cor;::?_:·ints fileG. r.ri th it , the numb r o::: cor:plr.ints ; O.. just e d 

by it , ~rJ ·cl:.e numbe r of compl'ints ':!hich rern ~in,<\ un:--c1.,just 8d. , ··:i t h in 

e~c. Lo~nl:.l-- _J8l i ocl , :--ssifit.~: ---~; t:cr-de -yrr:ctic'"' c onpl:--L1ts. 

9811 
- 516-

E X ~ I B I T C- 1 

<J811 
- 517-

E :~I::J T C- 1 . 

At ~ meet i nc of t:1e Code Aut:w ri ty hel cl_ .:'.t t :.1e licAl) in ~~o tel on June 14, 

1934 J.e f ullo\7inc resoJ.uti cn w;:.f'. mr-.de , s e c o11ded c:-.n<i unc.nimously '"'.dc)t ed : 

3.ZSOLVED 

11 Th c..t t >e Code ut~_ rity oe , c.nd i s ~~ ereby C' -:.ltl'l ~rized 

to ~"'~ int c . .::r.ti.. on nl :::., ..- bor Comyl Li n ts. CoEll.l' i tte consi st:..n..; cf t ·.1ree ,ilbel~s ; 

~12 t ~1e L<'.bor Advisory Boo.r d. s:1:::'.ll c..lso '--Pl)Oin t t:'1ree 

members t o t his ccmmittee; 

Th~ t t-1e Ac:.,11ini str0 tio:1 I:eub e r of 1e Code Aut 1ori ty 

sl!c..l l be c. rnembc::.1 f t:~is o~ml i ttee c:.nd 

The. t ~1 e c om:ni t tee s:: .,.ll =lr.v e ['. pc..ici s e c r e to..ry c:ncl <'. 

leb.:;..l :-.c:lvisc r; 

Thc.t t!.le nN!leS of ~l e e! ~ber-:3 C') 'lf:tisinc e : is c or:.mi ttee 

sLc..ll be p:cesen t ed to t~1e CoU. c:; Aut llori t y r.t t he next 

regttler mee ting." 

( Si ;11e-i ) Irvinb Sc.:oenl:.olz 

Secr et::'.r;ySworn t o ~1d subscribed bef or e me 

t:1i s 6t l1 cle;y of July , 193Ll.: 

( Sisneu..) Ev e. Sel i :_;1::12.n 

J· ry Public 

';e\7 Yo rk Coun t y Clerl:s iTo . 185 

( SZAL) Jert York Co . Register r"o . 3- 8- 67:5 

Corru-:1i s si on expires Lic..rcl1 30, 1933. 

9811 
- 518-

At ['. meetint; of the Code Authority 10ld c:, t ~1 e ~~o tel l.IcAl:)in 

on J une 1~, 1934 t :1e n2mes of ~1e follo~ving members we re 

SUGGested ClS me1.1bers t o serve on t lle c:-,tionc~ L<.'.bor Complaints 

ComDi ttee. T:1e Cocle Authority voted e,:p)r ov c,l. 

D<wid A. Ingber Presiden t 

D<wid Morgenstern President 

Sol i.iuttel"J.) erl Pre sid.ent 

InL_b o r .:& Co., Inc. 

347 Fifth Ave. 

Nevr York, N.Y. 

l.1or{:,enstern <:.; Brosseau, Inc. 

26 West 17th Street 

NevJ York, N. Y. 

Sol I.iutter:_)erl, Inc. 

330 Fiftll Ave. 

N zw York , N. Y. 

(Si gned) Irving Sc~10 enholz 

Svmrn to nd subscrib ed before me 

t l1i s 6t~1 d<.'.y of July, 1934. 

(Signed ) Ev2, SeliQU<:n 

Not2.ry Public 

9811 

Secretc.,r y 
9811 

Mr. 0 . ~. rscn 

45 :Sroc>.C.wc.y 

Nevi Yc r k Ci t~r 

Dec;.r I.ir. P0c.rson : 

- 519-

July ll, l'J34:. 

I n c;.ctdi tion t o ~:e ~1 ee I ndustry 

mer,1bers c f t 1e a tional L.:'.b or o~rr')lc?.:i n t s 

Conuni tt ee , t:1ere s:--..o.l l be t h r ee lc;.bor membe rs 

of s..,.ic. Co!nr, i ttee t::J be d esiE,n2.tecl ~r t h e 

L.:'.b or Ac.lvisory Boarc1 of ~1e N, .tion2.l Rec ove ry 

Admin istr2.tion . 

Ve r y truly yours, 

(Si Gned) A. itt ~l <'-l ---------------------------- .h . ~- 'i t t en t:_al , 

Cocle Direc t cr, 

Lc?.<l:i.es 1 ~:;.nd 2.g Co de 

_uew ri t y 
- 520-

CODE AUTL·:J~ ITY 

LADIES' r:.ru~DBAG I EDU STRY 

347 Fift~1 Avenue 

NE 1'1. YOrtK 

) 

• July 6 , 1934 • 

REPGRT TO TEE NAT I Ol'LAL ?3CCN:Z::1Y ADLE;l Sr.[3.AT I SN (;:i!, ;. ~E ADLINI STRATI S:i.-J 

L"Ei.IBE:rt GF ,:,E CODE AUTL·:JRITY FOR ~~ E :O~ 01!' FAIR COi.iPETITI GlT FOrt T:::E 

LADIES ' .Ai.\J :SAG I NDUSTRY 

De<.'.ll G. Edvlt'.rds 

De:,Ju.ty A .. l.mi n i strc:,tor 

A)l)c.rel Secti on , Divisi on 5 

:N::. tionc.l Recovery Adrnini s trL:. tion 

·12.slli ngt on , D. C. 

De t'.r Hr . :Ecl':"Jc;_r cls : 

Tl1e Cocle Autho r ity of the D..i1o ve Code of Fc-.ir Co m~') eti tion 

desires t o qualify as E'. Lc>.b or Coml)l aint s Corruni ttee in t h e fi r st ins t .':ln ce f or tl .. e ~1UTl) OSe of r e ceivinG c.nd c? .. djusting L:.ll l c.bor compl a ints 

of viol a tion a risinG i n the I ndustry. 

It i s t he clesire of t he sc~ l Code Committee hc~ t it 

cr el:".te itself as C'. Com;)l<:'.i nts Cornmi ttee. 

Tl1e )S G..."1 d int e r ests re:)re sented by e['..ch member of the 

Code Autho rity fu..."lcti oning 2.s 2. Coml)J, a ints Conunittee 2.re ns f ollows: 

NAUE: Do.vid A. I nc;ber Pre si d ent 

' 

OCCUPATI01·J : },;['.llufr ... cturer of L['.di es' ~i c:nc1o "' .. g s 

2PmiSE:i.\]'T :~ : Lac.h es' ~=~~n dbe?.c; Indust ry 

* * * 

NAl.iE: Dc:.vi u l.ior ben stern Pre sident 

OCCUPATION: l!lanufL:.cture r of La die s ' ::Ic.ndbab s 

rt.EP:rtES2:i.JT I!·;G: L['..dies 1 ~-['..ndor..g Industry 

* * * :i.~ .Al : Sol Lutter··)erl President 

OCCUPAT ~.r"' : l:ir . .nu f :.c turer of h .cU es t ::'J .: .b<'.CS 

rt.EP:r?.S.3EHTil:G : Lr.dies 1 =~r'.ndor.c; Industry 

* ,~ * 

9811 

Ingber 2.nd Co. , Inc. 

347 Fift:1 Av enue, 

N e \7 York , N. Y. 

[,lorgen stern (.; Brosseo.u,Ir 

26 i:les t 17 e1 Street 

New York , N. Y. 

Sol Uut t e r pe rl , I nc . 

330 Fift:1 Avenue 

J.\ew Yort: , • Y. 
- :J21-

The business dc re s of tl:.e NATIONAL L.A'BC2 CO..IPLAINTS 

o~ ITTEE is I G>ncl will continue t o be: 

347 Fift 1 Avenue , 

.rJer,r York , 1~. Y. 

T~1e ex:2.C t scope of te s;·.id Co;·,yplr.in t s Comni t tee will 

be t l:. e t erri t cr,r emb:;:c-.ceo. by t:1e Code of Ft:.ir Co.:-npe ti t i on fo r 1e 

P.bove- nu,1e0. I ncl..us try . 

It is de sired t:w.t compl P.L1ts with in ~H~ scope of s£".id 

Code Aut ·J ri ty <.re t s be fil ecl. in t:1e f irst ins tc:mce wi tll t h e sD.id 

Cod e Authority. 

~-e .,r.id. :· 1~Jll". s Ccrn.Jli ttee i nsof.:-.r ns its Indus tri a.l 

Adjustment A;,;ency is concerned , i s to J.e<ll wit l complc?.i n ts of a lleged 

viol c?.tion s wl:ic~1 refer r eS!?eC ti vely t o : 

(l) Lab o r ~Jrovisions (wi1en ~10 C01:1}1c:.int "'.lleges }u·~ t e.n m~J oye r 

i 8 Viol P. tin ~ ~ l o..b or p:rovi sion an(_ i S 

(2) Hours of l Gb or 

(3) l: inimum ·wages 

·• c.ndlecl a s c:. fair tr,.de ' p r c?.ctice complP..int) 

(1:v:~ en t:1e co i~ l[·. int e.llet:;es t :1c.t 1ln em·_ loyer 

is violP. tinr; E'J.l :1cur :provision <:'nd is 

'lrnd.led c;.s a fc:.ir tre.cl.e ·or a ctice com·Jl a int) ... ... 

(w ::. en ~1e c or.rplC'.int c.ll e c es t :1c.t r-n em~Jloy r 

i s viola tine a war;;e jll'ovi sion a nCl. i s 

~1.:md l ed c:.s c. f c,ir tr ~.de p r c.c tice compl a int) 

T~1e Code Authori t~r ~s been dul y e.n 1 p r o:Pe rly con s tituted 

and :1e.s been functioning s a tisf a ctorily since e1e effec tive dc-.te of 

snicl Cocle; it i s well equi J} )e d financi c..lly to unclert['ke tlle expense 

of t~ e functi onL1:; of t :1e sc.id. 01n~')1Lin ts Com.::i ttee F.:'.nc.l is pe.rticul<.rly 

desirous, i n t~1e inte re st oJ..' strict co:rqli··.nc e wie1 the Code c.nd the 

~) rincijH e and spirit of the Nationc..l I nci.us tri...,.l 3ecovery Act, to p l ace 

trustworthy investi gc..tors in e 1e field t o ~1 e end ~1a ~ ea ch uni t of 

t l1e Indus try ma y be b rouQ. t to a com)le te knor.,rl ~ge t hE'. t t:1i s Code and 

1e Act itself Gre to be observed, su~J ervised c?.nc c~Je rly enforced. 

Any ch211be in ~1e so..id comr11i t tee, ei ~1e r i n sonne l 

or ~ ~1e estc.'ulishment of rebiona l Cor:1:::>12.ints Committees, will be 

LJi:.lediately re)orted to the No..tional Recovery AdrninistrE>,tion. 

Re syectfully submitted, 

( . .:::1 -' · ..;~"''" erl.) - G • .. i l • Pe"' c. r"'on v 

r .. , "D ~ 

·"-' o •I • ..&. eo .rSOn 

Ac1..minis tr.:tti on l!Iember 

9811 
T.I r. G. \1. Pe t.'.rson 

45 Br oc..cw.:--.y 

New rl~ City 

Dea r Lir. Pea rson 

-522-

CODE AUT.:-iG:rtiTY 

LADIES 1 I::.Al~D:OA3- I NDUSTRY 

3L17 ~ AVE l.JE 

New York 

July 6, 1934. 

It is t'.1e a i m ancl -.;urpo se of t:1e Code Au t :1c r i t y of tl1 e Le.c.Ues 1 ::anclbe.g 

Inclustry to secure cmn::_;li an ce ·wi t:1 ~1e ) r evi sio ns of the Code by e.ll 

)e r sons subject to its juriscH ction , wi t >out resort of legP.l )rocess; 

a nd t o c:-~ id C2.l linc in :.:;overnmentf'.l c.id until t:·.J.e Cod.e Autho rity 

P..genc~e ~ have eX:1o..ustecl o..ll re<.son< .bl e efforts e.t securing co:tr)l i ance 

·a t he rwi se • . , . 

Tl1e Code Authority has orgc:ulizecl a N2. tion8..l LE'.bor Com~J e.ints Committee consistinG of not le ss t han six members , ~1 ree of whic~1 :1.:we 

b een e.~;::_Join ted t o rel;resen t em Jloyers by the Code Autl1ori ty. · T~1e Administr2.tion Liemb er of t~.l e Code Authority s:-Le.ll be e. me;·nber of t:1is 

com:nittee. ·;le shall ,,,lso hnve a full time ~J id executive secretary 

£'.nd c. le_;:1l .:'..clvi so r. T:1e nc . .rnes and inte rests re:pre sentecl b;:,r e2..ch 

memb er of the Ne:'..tiona l Lc::bor Cor:r_;_; l c:'..in ts Committee 2.re 2.s follows: 

David A. Ingb e r, 

De.vid i.iore:_; en stern 

President 

President 

., 

President 

ngber ~ Co . Inc. 

3<-:7 Fife:. Ave. , N.Y . 

Lio r g enstern ~- Brossee.u, Inc 

26 W. 17th Street, : : Y 

Sol Uu t ter Jerl, Inc. 

330 Fiftl: Ave. ·, N. Y. 

Tl1e business C1.Cl..L1.ress of t:1e rTr_ tionF.l Lc-.bor Co:rr_Jlain ts Committee is, 

c:..nc1 will continue t o be, 2. t 347 Fiftl1 Avenue, New York, · N~ Y. 

Th e Code Authority is duly and IJroperly constituted and is functioninG s0.ti sfP..c torily since t he effective d o.. te of said Code Barch 26, 

1 934 ; it vvil~- be equi ~J~J ed finMcially t o undertE1ke t~1e exlJense of ~: e 

f m1ctioninc of t h e se.id Com)l c.in t s Cor.nmi t tee, and is J.X'.rticul a rly desirous i n t -L1 e intere st of strict com::_Jl i ence wit~1 the Code P..nd t }:e 

:· ri nc ~J le e.nd s:oi:ci t of t>.e 1h. tionccl In dus tri ~ Recovery Act, to 

:place· trustwortby investi gc:.tors in t :J.e :fiel ~ to t ... 1e end that ench 

unit of ti.1e i ndustr;yy mc.w be brow;~1 t ~, r.. c om) le te knowleo.ge th['.t this 

Code ru1d t he Act itself e t o be ob served , su~ervise d ~1d pro?erly 

enforced. 

9811 
- 523-

lir. Pearson :-

Jmy ch8.Ttge i n the sc:.i d. Commi t t ee , e i t:1e r i n personnel 0r i n t he 

est2.bli s~l.ffi8n t of r egional Com:plai n t s Commit t ees , wi ll be i mrnedi n. ~r 

r e"9o rt ec1 to t:he .fa tiona1 Rec ov ery Ad.r.lini s t rc.t i o;.1 . 

am : ed1 

Sworn t o ~nd subscribed befor e 

me ~1 i s 6t :,_ day of July, 1934 

(Signed) Eva Se1 i gmnn 

No t c>.r y Publi c 

9811 

Ve r y 1~ly yJu rs , 

CSDE AUT~:OR TY 

LADIES 1 ~~.AlffiBA G I NDUSTRY 

(Signed ) A. th tent~l£> 1 

A. l:i t t en t:.w.l 

Code Director 

(Signed ) I r vinb Schoelli~olz 

Secr e t e.r y 
9811 

ir. (; . 1iJ. Pearson 

45 Br :) a clway 

New Yor k City 

De.i.r l:Ir . Pe?.rson : 

- 534-

I n Add ition t o e : e t :1ree I ndu s tr;;r 

me .1b e r s of e tionc>.1 I.~ <. r cm~-?1e ts 

CO!'ili't1ittee, er e slw.1l be t'lree 12.0 0r meub e rs 

cf s e.i c_ Commi ttce t o be cl. esiE;,n o..ted. by ~1 e 

LP b or Advisory Bo<?.rd of t:1 e l'Te. ti cn.?.1 Recovery 

Administra tion. 

Ve r y t rul y y ours, 

(Signed) A. lil itte ~: .l 

A. Ia i t ten th::.l 

Code Director, 

La cl.ies 1 :!Pn db a g Co cle 

Au ~1 c: ri t y . 
- 525-

CGI.iPLI.ANCE ADi1iHJ I STBATI .- ~ 

CGDZ OF FAI::t C; ~.2ETITI 0 T 

of t_· e 

ARTICLE I. GnGA1 I ZATICN G} LABCn GL~ J L !TS CCi.il ITTEE 

Section l: Cre2.tion of J.J2.t ion.:-'.1 Lc."u c r Com·Jl a in t s C_·mrni ttee 

T' e Code Authori t y ~: al l establish .::1. l ational Labor 

Com)ln.ints Comni ttee c onsi stin.:;; of not l ess t hc:m (4) or more tha n 

( 10) nemb ers, one-lw .. lf of w~:ic 1 shc:·.ll e~J resen t eml_Jl oyers and she .. ll 

be c..p)ointed by ~1e Cocie Aut:10ri t y , or by its j_) resiCI.inb officer; end 

one-~1 o..lf uf vri1ich, re:}resentin.; em)loye e s, s~1 c:l l be "' ·P Jcinted by U1e 

President on recormnendation of t~1e Lab or Advisory Bo a rd of t:1.e Nati on2.1 'i?..ecov e r y Ad:rninist:re.tion. An Admini str a tion Liemb er of the Code 

Autl1ori t y s:l['.ll be a rne;nber of this Committee . He sl.1.all 1ave no v o t e 

but a veto subject to revien by e1e Administra tor. The Committee 

s:1all have r:. full-time ~)e, d Exe cutive Secr etary , who s::e.ll be on e 

stGff of tJ.1e L2.C' i es 1 llandba g Code Autl:.ori ty ancl mew devote part of 

h is time· to Code Auti1ori ty duties ot~ne r ~1an those of t~lis Cormni ttee. 

The Com:·uttee shall C'..lso l.1n.v e D. let;al adviser. 

Section 2: Administrc.tive Personnel of -ati onC'.l Le .. bor Com:9lc:dnts 

Committee. 

Tl_e Commit tee shall el e ct from its members a ::,>re siding 

officer t o ·)resi de a t a ll !nee tings, but suc:1 pe rson si1all reta i n end 

exercise t :1e ri.:;_·.i. t t o vote. T'.L~e Corronittee shc.ll also elect an 

a r bi tra t or YTl:.o shall be CC'.lled to serve e.s p re s i d i ng officer with 

right t o v o t e w: en t _ e Commi ttee is evenly cl.ivided on c:ny que stion . 

The Cor:rrni ttee, subject t o disap1)r oval 'of t l1e £> .. tional :rtecovery Admini s trc? .. tion, simll c.do~) t its ovm by-l c?.ws £'nd rules of l)r ocedure, and 

fix t l1e time and pl a c e of r egular e .. nd sye ci al mee tinGs, e .. nd ~1e 

manner i n wh ic~ such meetings shall be call ed a nd c onducted. The 

b y- laws, with respe ct t o a quorum, she.ll p r ovide for equal voting 

re:._Jresen t c:_ tion of empl oyee and employer meElbers. T:1e faciliti es of 

t:..1. e Code ut::ori t y a s to necessary office space, st eno t;r c: .. :>:~ ic 2.11d 

cleriCE'..l hel~) , and place of mee ting , s:1all be made available t o t h e 

Coinmi ttee. T'.11e Executive Secre t a r y of t ile Committee , s' all r eport e.t 

2..ll meeting s t h ereof a SUlilffiE.ry of ~1e co.ses :1andled by the stcif in 

t _le intervals between meeti nGs t o Get~ e r 11i t~1 2. st e.temen t indice.ting 

dispo sition of ca ses closed. 

_;:, 

Section 3: Functions of 1~c-. ione.l Labor Cor.nlC'.in ts Committee (or 

Ind.ustric.l J.el 2. ti on s Co .11 1i t tee) 

2.) T~1e Nntione.l LE'-bor Com)l r.in t s Co.:-ni ttee sl"C.,:'.ll 1ave juris9811 
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die tion in L1e first ins t nnce over o.ll cor. (pl~. in ts ;:tll ecing viol?.tion 

of Articles III, IV c=mCl. V wh icl1 r efer re s)ectively to (1) Hou.rs of 

Lab0r o.nd. (2 ) l.Ii n imum ·v7ages of ~~e Ladies' ~=<'.lldb.s.t;; Incl.ust17 Code, C'nd 

( 3) vLc:>.bor Provisions , a nd in ~1 e conduct of its work may recormnend 

to ~1 e N['..tiol1C'.l :aecover~· Administra tion, t h r oUGl 1e Sxecutive Officer 

of t he Code Aut:1ori t y , tem} orc.'.ry exce:Jtions t o ,'nd te.-nlJo r e..ry exera:9tions fr om t~1e p r eivi si on s c.. f t"i1 e Cocle, a nd. m2.y rwke suc~1 exylruw.-

tions c:>.nd eXlX) Si tions n..nd int ret .tions of Gocle )revisions as its 

work m2.y r eq_uire. The Executive Cfiicer a11 forv1r.r cl. to t:1e Nc tion2.1 Recovery Administration not l<'.ter thc:_n t:.1e cl.F'..y after recei)t and 

wi t:10u t change , c?.ll recomrnend~ tions of ~1e H~. tional Co lllJ12.in ts Committee me1de pursur.n t to t he 1Jrovisi:ms of ~1 is :x:.r:'..s .., Jh. 

b) The Corrr11ittee ·sh.::.ll issue ·· :reguJ.ations cle?.rly clefin.ing its 

rel a tions v1 i t: ~ ~e reg iono..l con :)l e.in t s corrli i t tees ·!_erein2.0ove lJrovided, 

a nc1. is e r.l)Owered. to C'.lter l-;o wers, c.luti"es, 2.nc.,_ terri t oricl Jt.:.risdiction of ret;;ionf\1 lr..b or com:,_1l c:>.ints r. .l i ttee s t o ~l'l..l1C e t·.1e numbe r 

- - - - - - - - - - - - - - - - - - - - - - - of su~ .. co~nittees, 

o.ncl t:"e number of its members 2.s cirCllil1S t L'..ncas :Jr-.y r e .-·ruire, to issue 

resu.l.ations C?,ncl instruction~, t o l'equire suc~1 re~1 rt s ~'-s Tfl£.y be necesso.ry to md-<: e t:.~e e rules effective, e1nd l:ee:._J t~ 1. e 0o;-ru ittee e.nt1

. t:1e 

National :rtecovery Adml:..1ist:t;'<.t ion :lui.ly c:~clvise C. c :·,ncernin:; l.n.bor co i~r­

:;;:>l i ance vrorl:: under t :1e 1~ di es ,. ··~!r.ndbag Industry Code. 

Section 4: ReE;i onRl Labo r Cgi.r'"'l['.Ln ts C01-;:.ni ttees 

'· T:1e Cocle Autl10rit ,r :.i ~_ll est bl~s: .. Regi onal Lo.bor c~m-

:9l 2.ints Comraittee s for the Ve.rious lJa rts of e United ' Sto..tes·, nnd: 

desi [;na te t ::.. e jurisclict_ion or" · sl.?-ch 3er;ional · L·.·?b or Gor:t~J r. ints Committees, tJ.1 eir loce.tions 6.nd t> ..eir ·r:1 et ·J Cis v:f ex-·") ense rlistributicn, 

w:1i ~1 s:1all C'.:.?·)ly to 2.ll per sons suJj ect . to tJ:.e Code l oca ted in the 

t e rri tory inclucled unc' .. er . t lle juri sdic"ti vn of' UC~'l · .E.eg ione.l· Ln.bo::.~ 

Co::'l:,;>lc:>ints Commi tteee. 

Section 5: Liember_s1l :? of ::.:tegi on-:11 Lab .Jr ornle.i~ ts Co:nrni ttees 

( ne[;i on 2.J.. Inc1.us trir.l ~elr cn s ·vo :·T •. ti t tees) 

( n ) F"or e c: .. c~:. suc:·1 Regi 'Jn2 .. 1 Ln"'uor Co:T}l a ints Co::1.. .. 1i ttee, 

one ~1 ~.lf of e1e. mem rsl:. ~J , ·~::J: e sen tin·.;. em:p;L oy ee~, sl.:.all be 

ap Jointed b:r tb .. e .:.~ation ;.. l Recove:-;.' · Admini str.ation ::m reconu-nenc_ation 

of t:1e. Lc.bor Adviso rJ B"OC'.rcl of t:te ·. : e.tionC.l Recovery Acb:1inistration. 

~1e members rej_Jresen tin(; em~Jlo er s ·shall be a::_J::_Jointed. by t he Code 

Authority from c:.. pe.nel incl r~ n{"; ::_Je rsons· n omin2.t ecl by the Di-..risions 

affected, so f'.S to s ive fair r epresentc.tion t o c.ll . Divisi ons. 

(b) Each such n~:1 :ittee s::1a ll elect 2. c: .. <.'.irrnrn, who 

shall ret e.in cmc1_ axercise t > ..e ::_xiwer t o vote. Sd.d cin ~ittee sl12.ll 

a ls o elect an a.rbiter WllO s>e.ll s e rve, ~-d.C.: it;~1 t t o V(:)te; w~1en the 

committee is eq~lally d ivided on 2ny question. 

Section 6 : FUNCTI Gl\S OF REGI Gl;AL LABC.R·CC .. .PLAINTS CC:u.liTTEES (or 

i:EGl'-:TAL . L\DU STRLlL ~]ELAr:L'I .:J~T S CC:: .I TT::::ES. ) 

The Rer;L.Jnc.l L<'.bor Cc.,::n l c.ints Com.rrn tt~es subject to a~J-

':.. ·' 

9811 
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prove.l of t he ND..tional LD..bor Complaints Co .uni ttee, slw.ll etdo_)t by-laws, 

anC.. rules of y r ocedure , anil S11.a ll mc>l e ) r ovisions t :1er e in for p eri odi c 

me-3ting s c:.nd l1e r.rine;;s 2.. t V:l.ri JUS J)l a ces in t~ le terri t c ry subject t o 

their jurisdiction so o.s t o Give r e c->.sonRble :::.\o rtun it y for t he complaina:n t s ancl. respondents t o 2.l1pe c..r before the Cortl!-Ji t tee . T~1e b y-l aws 

may also p r ovide f o r 1e c ond.uc t of >.ec. l~in s .s.nd inte rvi ews by subCol11.mi ttees on wh i c:1 t:"ere s:lc.ll b e e qu:.:-.1 r e1)r e se"1 t a ti on of memb ers 

re)resen tin ~ em) loye es r-.nd me ·n-oe r s re:uresentin[; eml)loy e rs. 

Section ? : DEL3GAT L :i. ~ :jF pr ·.;zJ.tS :SY BEG I C·NAL TJhBCJ3. CCi.1 PLAil~T S COi iLI fll~E3 s :.3. ~:::sG rr KATJ ~ TDu STnLC\,.L rm:s)_ T I ~ s cci.'Tn TTEES. 

Any Regional LP.b or ;J n t s Cor:llni t tee s mc:w , by ngreement app roved by t:1e NC" ti on2.l Lc:.b o r Com::_)laint s Committee , c.elega te 

a )ortion of its ·:e rs or transfer a p orti cn of .its jurisdiction t o 

c>.ny other Regiona l L.:Lbcr Comi;lc>.i n t s Commit t ee w:.1en sL.:ch delegation 

2nd transfer i s i n t :1e int e r e st of bett e r aclmin i strP.tion or ap~::J rs 

likely t o f a cil i t B,t e c..ncl i m-p rove c orrr)lin.nc e work . 

Section 8 : A??CRTI C: ~·i' ~J T :.,; :SXPEI;s:ss :S~T J'J;jEN AG~rCIES 0_F Tl:E 

CC:OE. AUT C..~ ~~ I TY . 

Each Region 2.l :U 2.b J:r C0m.c)l a i n ts Cmnmi ttee 1e.ll p r o-rc..te 

t:1e ex-_Jense of h andl i n e; lnb or com~· lain s and/ or l £>.b or d i s:pu t es among 

t :1e Div isions under its jurisdiction i n such .:•moun t a nd in such 

me.nner ~w. t ee.Ci.t Divi si on, 3ubcl.ivision, end G:rcup con c erned 1all 

be2.r its l) r oportion£>.te c:.nd. j u st s~W, l'e of 1e t o t 2.l exp ense of said 

Ret;ional Labo r CoulJ?l c:.ints Comr:ti tte. 

Section 9 : AP?-:'..OV AL CF PErtSON1·TEL OF LABOn CO IFLAI YTS CQl :IITTEE S 

BY LABGR JillVI S· ~1Y :JOLi.D 

Th e Labc r Advisory Bu r.rd of t i.1e N. R. A. s:1c,l l "'..p p rove 

~1e selection of e.ll r el)re s entP,tives of l abor, ~~o mew b e selected 

i n c::.ccor c1C1 nc e wi 1 p r ocedur e :1erein l)rov i ded , fo r s e rvi ce on any 

l e.b or Co.J:)I<::>.in t s Commit tee s P..nc1./ o r I ndus tri 2J Rel r,tion s Comni t t ees , 

if, a .. 11d when crec. t ed .• 

ARTICLE II. GZlTE?..AL FACILITIES O:i!, CC·:.:PLAIETS CC:.fi.IT:!.1EES 

Section 1 : ~PAJ.T l.!E T OF Oi.iPLL ·· C::B . 

The Code Authority may cre~te "'.11 executive o r .::;anization t o be knoYm as t:1e De:pa rtmen t of Compliance ~ .e ['.ded by a Ch i ef 

of Com:lli['.nce , whi ch De"}artmcnt shal l h<we c;enera l e.clmini str 2.tive 

SU) ervi sion over ~ l Ne,:, tional , Divisi on a l, D..nd SUbd.i vi s i onnl com-

:9li211ce a ctivities of t :1e Cod.e Autl ori t y . 

Section 2 : EI.1PLC'lMENT GF :'IELD AGE:TTS AND CFF I CE ASSISTANTS . 

Divisi ona l a nd Subiivisicna l Tr2.Je Pra ctice Complai n ts 

Commi t tees and J.egionrli Labor Co;n::_Jl8.in t s a ncl/ or I ndus tria l Rel a tions 

Con1mi ttees shc:.ll reque st frorn t:le t:'..l1:)ro:1r i r·.te Divisi on Gr Subdivision 

agency such s t :::ff e.ssi stc. . n c e c,s it m.:--.y :re uire r::.ncl. suc:1 c>.ssi s t e1n ce 

shall be furni&:~ ed. p r om)tly. -.T.1il e enG<.t:;ed i n assi ;rnrnents for Compliants Cornmi ttees sucL st aff s::.1o.ll be under :e i n struc tions and 

q 1 
-528-

direction of t h e Cormni ttee and sh2.ll be res)onsible L tereto. ·.T11.en ever 

necessa ry a::;;ents may be c o.llecl. t o testify a t ~le e. rin Gs en · Cc.ses a risint; 

under ~1 e jurisdiction of ~1 e e.§;ency by wl1om ~1 ey D..re employed. 

Section 3: J!'UNCTIONS .A.liTD DUTijjjS GF FIEL.D GE TS AND 3T.A:i!,F Zl1iPLGY2ES. 

c:-.) It is ~_ e p rime.ry ~Jur~Jo se of fiel d. at:,ents t o determine 

~l e ff'.cts, t o exyl a in t o )e rsons subject to t l:e Co cle ~·~eir duties, 

t:1eir rig~1 ts and obligations, and t o a ttem)t by t a ct and :p ersuo.sion 

to secure en [lmicable l?.djust ment of c mn:.:.,l c..ints. In c e1 ses w:1e re res:Jonclent aclmits f a cts 2-s allebed i n 2. c om)l c.int ~1 e fiel o. e.c;ent 

should. obta in h is explana tion and a st e.temen t from h i m a s to w~ 1a t ~.-~e 

wil l cl.o t o ma1~e r esti tuti cn f e r viol a tions admitted. b y l1im. If res:pondent admits f c.cts a s alleGed but t clces issue v.s t o the a::>:9lica tion 

of t:1e Cede to ~1 ese facts, t l:.e field Lgent s~ 1all obta in a clear 

expl c:'nati on of t!.-::.e reaso ns for his :Josi ti on. I f respondent ctenies 

f a cts, L te fielcl agent s:1all 2. s~~ pe r mission t o exernine recorcls but 

if such lJe r missi:m is refused e s>all no t insist u:pon a ccess to 

such records. l:e should., h owever, expl a in to r espondent that :1is refus a l will be an indice.tion e lat :le do es not desire to adjust t lle 

complaint e.nd will OlJere.te t o ~1 is cl.isadvantag e. 

b) Before i nvesti bc>.ting c>.n a lleged viol c?.tion, field agents s:1all notify res::>ondent of ~1 e ap) roxima te d2.te of £'.rrive.l c>.nd 

~1 e ~Jurpo se of t :1eir visit. Employees sl1oulcl n ot be interviewed during working h ours or UlJOn t l1 e premises of t :1e r e s:pcndent unless p ermission to do so lJ.a s been obta ined. fr Oin ~~e l2.tte r. Field agents 

sl1ould bea r in mind a t all times ~1a t it is r functi on t o find 

t h e f a cts and ex:9lain res~Jon dent' s ob li c;e.tions und er tJ.:. e Code. T:1ey 

sl:.ould no t engage in a r t;u.ment or dis:_Jute. Tl1e ir re~Jo rts shou ld be 

mc..de only to th e alJ:Propri a te Com::_Jl c.in t s Co.!uni t tee f or furt~l el~ a ction. 

c) Th e Committe es sl1c..ll p r om)tly e.dvise t l1e Code Autllori t y or its agencies of any ce..ses in wh ic:."l j_Jersons subject to t l: e 

Code l1.e.ve f a iled to J::>ermi t fiel d <:'.gents of ~1 e c omrni ttees t o visit, 

exemine, or o t l1e rwi se inve sti c;c:.te conditi ons in any e st ab l i ~11Ilen t 

oper a ted by t h em, and t l1e Cod.e Aut:1ority <:tnd its agencies s~1all give 

similar inf or rnu tion to the Cormnittees. 

Section 4: FIELD AGE1TT1 S :EPuRTS. 

If a field agen t repo rts ia t respcndent ~as not viol a ted 

any :p r ovisi cn s of t h e Code, compl a inent will be so acl_vised, and if n 'J 

furt~1er •vo rc1 is received from h i m within <:'. rea s onable time t h e c c.s e 

s:1all be closed and t::.·,e re s:poncl en t s o aclvi sed. If n.gen t 1 s report inclic.s.tes ~:a t respondent is willinc; t o c om1Jly and mal:e re stituti on for 

past vioJ. a ti ons, upon s a tisfe.ctor y evidence t~ La t such a ction has been 

t alc en,· ac1vice s~:all be Given bot~1 t o re s:Joncl ent 2.nd to comj_Jlainant 

a nd c 2.s e ::. al l be closed. If at;ent re:Jo rts ~w t res:;_;o nclent refuses 

to comlJly or make re 3ti tuti on , or : ... c>.s f(l.iled t o fu.rnis}.l s a tisfa ctory. 

eXJ.:Jlanc.tion ancl. it is decided ~w. t furt::.er a t tem:? ts to adjust c ompl a int will be futile respondent sl1all be n.dviser. 1e t tl:e case ~:a s 

been tran smitted _for e.ction to t:.1e :-_:> r olJer £ e.tionC'.l Com:Jl a ints Com9811 
529:-: 

mittee of ~1 e Code Au t h::;rity . 

I f ei er t :le CQO::l)l c>.i nc:ill t or res)cnc1ent i s c. s~ <'~.tisf ed 

wi t:1 FieLl_ _..,_&ent ' s re~:o t, ~H~y s: .~.l ~1[WG t: .e ~1 t t o o.:;_J~Jea r bef or e t::e E'..)_) r C)r ic.te c~n.l:._J lc 1·~s Cor!'li;ii t tee ·in ~Jerson Ol~ t o f i le C\.. 

s t c>.tement vtit::. t:!.1e Co·,1;·,1i tt ee st:::. i:a ~ su ~1 new or 2.dditionc..l fc-.c t s 

c-.s t:.ey m~y feel ['..re ~~ rt ent t o t .. . e c .:·s .. e . · 

Yflenever c-. es)o nclen t md:es r1. stt:'..teuent in :::.. ~: c.. rin .::; a r 

i n an i ntervi ew , <~ st"..teTt~ent t. .e:;:-e~ f sl1oulcl be :.) :c o:i1~J ly n·e~:x. ecl by 

t::.e Exe cu tive Sec r etn.r y ')f e 1e m) lc- s Co.-.1T.l t tee . t.l ~l stc-.t eJ1ent 

~lOUlO. be si gnecl ~r re S) nc~en t if :1e i S wi 11 i ng ; i :L' :·w O.e cl i nes t u 

si gn it, t :1e su.mn~'. y s~1oulcl sc; i ndice.t e ; if res:;_:>cnclent de clines t o 

mnde c:,ny st atemen t, t' 1.. e re :m .1enC::.c-. ns of .~ e Cc;n:)lai n t s CoYimlitte e 

s:wulc. so i ndicc.te. 

ARTICLE III. PRG CEDURZ I:; ~~ ~~AE NG CF COi.:?LAL~TS 

Section 1 : EFil~ ITI ClZ Sf O~.:PLI . 

Co:-.l::_Jl i c>n c e as used here i n i nc lucl.es : 

t'.) The L1st ruction c-..nd educc>. t i6n of ::?e r son s sub j e ct t o t h e 

Co d e concer n i n.:; ~1e ir r e83)onsibliti es ~1e unde r so a s 

to c-.n t i ci)ate ancl 2.v oid c om) lc?.i n t s of n on-compJ. i cJ1 ce; . . . 

o ) Tl1 e adjust men t of com::_Jlo.in t s of non -c o. :t~J ian e by education , f i nd·inss of I c:.c t, and. ·lJr essure of opi n i on wi ~1 n 

t i1e ndus tr~r ; 

c) T:le c>.cljust :nen t of co--,l)le.in t E b~r C.)n c il L'.tion , medic:ttion 

c>.nd c..rb i l~ c;.. ti on ; 

CJ. ) ~1 e r endition of re:Jort s t o e"1f orc e--,1en t c.g enci es of t .1e 

cover mnen t in cp.ses w' lere ?..1 1 o t:1e r ean s ~.'- c? e fn.i l ed . 

Sec ticn 2 : DEFE m~ CF LABCR COli.?LAI NTS. 

l3;;r l r.bor co:.l)laint s for :._Jur:;_JJS es of t :1e se r ec,ule.tions s:1r..ll 

be umler c: t ood cn_y t:wse c omj_)l o.ints w:lic:1 a.ll e ge viol2.t;i.. ons of labor 

:)rovi si m1s (Articles III, I V, V) of 1e Code , wh c:~ Articles refer reS) ectively t o (1 ) :~o ur s of Labor, (2 ) I.: i nimurn ·.7nges , and (3 ) Lo.oo r 

?revisions. 

Section 3 : .FORM OF C0MFLllNTS. 

Com:;_Jl a ints of Gode violntion s must b e fil ed i n writing , 

·Jrefero.bl -r on t::e 2.nc~c..rd f orm r.~-rp tl by t he Code Au ~1o i ty, copi es 

of wi1 ic:1 may be obtc:.ined fr om any . agency of t:1 e Code Authority . 

9811 
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An onymous com·1l a L1t s will b e a ct e d u·•on onl y i i1 t l1e di s cre tiOi1 of t he 

Com-•l e.int Cornmi tt eP r ece i v i ns such com1l t'.int. 

Th e nE!.me of t h e corrr.) l c-dn3.nt on l o.bor com~J t s must uc l:ept 

c onfi dentie.l a l1d t h e f a ct thc-~ t a corrnl 2.i 1:t has been f il ed a gainst any 

p erson under the Code a lleb i ng viol tio ~ of ot he ~ 1 r ov i sions of t he 

Codo mu s t a lso b e l: e-·J t confidel1ti a l. 

Se ction 5 : WHE=1: COLiT'LAPT7-S SHJ..LL 3E FILED. 

Com_)l e.i n t s of vi ol 2.ti ons of the La di es 1 He.nd-oa5 I nd.us try Code must 

b e fil ed, in t ho .first L:st "'..i1Ce , Pit!l t h e ~: e Di v isiom:·.l, Subdi vi siona l, or Re ~-: 1 Co m~ )l i1 s CC)Imni t tc e , ajd.. i f suc:C c om1l a i nt s a r e 

s ent ori:;i nall;r to any th e:~· a 0 enci es , t 'J'1ey s ht'.ll b e !~warcled 1J ro m1 tl~r 

t o t he ic.."!. ~J b ody . Com:;l c- L1ts sent L..ire c: t t o ~ho LE!.di c s 1 5'andbe.:; 

I ndu st ry Code .Authori t y of f ic e i n l7 ew Yo:r:k City s hall b e r eferred 

i m,1e dia.t c l y to the '1r o·-; e r Divi s i ona l, Suodivisionn l or J.eg i onal om aint ~ 

Committ e e . 

Sect i Oil 6 : 

~; th ..; her '- L ; shc:.ll :)r e v ent c-.:1y comJ1l ai:.;, .nt a t an;)' time from 

a y:_Jealin._, t o t h e ~n ti :t- 2. l :=t ve Ad.mi :1istr a t i on w"hich shD.ll have 

a uthor·ity , L : i ts di s cr e ti o;.1, t o r ef e r such c om:_•l a L: ts to a ~.o- he r 

2.0 e l1C-," of t h e Le di E s 1 ndb.: 6 nd t:;:~r Code A:1thori r with a e~ ese;.1

tive or seil :-· tives of t he 'Na t i on8.l Re covery .Admini strn.ti on i ncludeu. 

t h e r e i n , or ·Go t h '3 Le.U.ie s 1 Hq_ndba c:; I n c':..ustry Code Authori ty , or to 

oth er C ompl i a nc o A ,enci os of t he lTat i o11e.l Re cove r y Ac@i :li stre~ t i o:,.1 . 

Se c t ion '7: I nfor mr..t o~ 1 f. o! Al l esed 'Tiol 2.t ors. 

The La di es 1 H<t.n dba_::; L1c.:.ustr y CoJ e .Au t ilori t y shall ·1r e;ar e i mmedia t ely e. s t E!.t ement e::titl e d 11 I nfon:1c-.tion f or persons charg e d with viole.ti o:1 

of t h e La die s ' Haadb a g Indust ry Cocle . 11 'l_l h i s st2 t c;;]ent shall s e t f orth 

cl ee..r l y the r u l e s of :•roce du r e· i n r e s--1e ct t o all eged c ode viola ti ons, 

CJ.nd i ndi c r t e thc.t t h e a ll eg ed vi ol a t or is -_, ntitl e d t o hoE!.ring ~n d to 

C.}1pea l f r om r,ny fL1di ng s made b~ r a Co n~1 e. i:at s Co:mni tt ee . The ste.t ement 

must c..l s o L1cLi c o.t e t he . '1roce ss by 1Nhich e. cn s e of code viola tion r eached 

t he fiat ione.l Rec ov e r:r Admi n i strc.t ion a nd t he vr .... r ious c o'J.r s e s of a c t ion 

which rnc1.;y b e t c>k el1 ther eon by t he AdmiEi strn.tion. 

Se c t i on 8 : Proc ecl:.1..r e of Di sion[~l c-. nd Sub clivisi onal Com·1l cdnt s 

Co,1ni t tee s i n Hand.linr: Com11P.i !.1 ts. 

a) I mme di <;t e l y u:·Jon t h e i r tec e i :·,t by Di vi si onc::.l, Subtli v isi onal, 

or Regiona l Com•l .::.ints t~ tt ee s, COH!:•l aLlts vrill be exami ned by the 

st a f f ther e of, E!.nd vrhen su ch 1relimin2.ry exD.mil1ati o:. i ndica t e s t h2.t 

t h e fact s ll d, if true ~cy ~Qns tit e ~ io l~ tio n of the Code and 

COI11J1l a int she.l l be f iled 2.ncl ... :: ii a co m: )l L1 t n:imb er. Aclmowl ed£ement 

of t he Co n~ ain t, a nd a dv ice conce ri.1L1s t h e conr.1ln.i :,1t n'.llTiber shall 

be sent i mmedi a tel y to t he c cnn l <'.i::i.a n t. I n \;he e vel1t tlmt t he c omplai nt 

doe s :aot st a t e su.ff ic ie~1 t f a c ts to constitllt e a viola ti on, or tha t 

addi t io11al f a cts a re 1 e c ess017 for de t ermi n "' tiOl1 ::het h e r the Code ha s 

9811 
.-5 1~ 

been viol ?.te<i , corrnlc.L1A..:,t sl.l'll Je .;:e!'J_ui:ted to fur;lish e..d.di tio:c"lc-.1 i :nforma tion . 

b) Wherr a corrr_:1lD i:·.t i s obviously 11 cJ·c..:::l1>: 11 it si.1all be n.ck;.1owle d[Se d 

and without furt her act iol! -~ D. ced L :. fi 1 e . .!l:.ere connlc..l ·_ t s t n.te s fac ts 

which eve:{: if true wo:..'..l d ;1ot c on.st i tute a ~; <>tio · of the Code , ach:nowledgeme;.1t she.ll be rne.de t :;, c orTll t'.L1".n t v itb notice of ction 

accom)2.11ied by a brief e:x-;l am·.ti oi.1 of tlle re<:~ so::s t hr-refor. 

c) 'Vhe r e a corn:)l :-int hc'ls 'been ecce~>t'Jd ?.nd n.ll 11e c ess e.r y facts 

have bee;,·!. secured from co;n:-)lai::.!a,1t , it shc~l l be c-.:-.; i ,_,:,.1• to e. st:.1ff 

member for in uir~ r nEG. invest i Latio:L ':2he first stc~1 in such L 1quiry 

a;.1d .-~ vesti ge. tio,1 is t ne 're·1are.tio::. of e. brief statement of t he A-llet:;e d 

f a ct s for tra11smi ss io ~·: to the r e s:-,onde:·lt , ad vis i r1.g l-lim of t e Article 

of the Code a ll eged to oe violc.ted , pnd m<J:L'l, . 1' "'-' que st for 11 r0mJ1 t 

advice as to Phe t 1l e:> r n.l l o1· P.lW of <;he f act s a ll eged are true , and a 

furt her st::~.tement of the :1osi t i on of the r es:)ondent. Res~•ondent shall 

also be furni she d with a copy of the •:od.e u.nd of 11 L:.forrr.n.t i o:1 for 

P c r so11s ch2.rsed v.ri t i1 Violat i _, n of !.e L2.di e s 1 Ea11dhc..g Industry Code ". 

Se ctio:.1 9 : Admissi o::1 of Viol a tion . 

I f res JO :i ti.e 1t -1.clr:1its violPti n of Co de , but L1d ic['.tes h e i s willins 

to com~) ly in Jche future a:1d has m8.c1e r cstitutio:1 for ~)c_ st vi ol r· ti oi"ls, 

corn:_Jlaine.nt shall b e 1·1otified of such dj ~J.s !aen . L1 the c ase of a n 

em,loye8 who has been dischr·. ~,. ed for f ilin 6 n. connlaiDt r?emj1loyment 

aild r e stitutio:: of any lost ':! .~ CS , hlUst be a co:1cLi ~io:o.1 r~cedent- to 

adj ustme1 t. 

Section 10 : Deni&l of iol ti on . 

If the r es=.)onde:1t r;_e :nies t h o fn.cts as a ll e_:;ed, or i f he e..ili,1i t s t he 

fact s but i;ckes issue as t o t he mea~ in ; of the Cocie , or if h e assert s 

th2.t he is i.i.Ot S 1.1bj e ct the!: c to , or th,'1.t there i s a co11fli c t of code s, 

or if t he r e s·-,ondent fo..ils t o s:;,tisfy the Corn: 1L'.i:1ts Cornr1i tt ee that 

he i s not v i ol2ting the Co de , he shou.lcl be J.<Ot i fied to a-)~)ear at t he 

office of the DivisionD..l, sui)C:..ivis i o:.:.c..l or Rec,i onal Com~1 s Co!Thnitt ee 

<1nd st e.t e h i s ce.se , nhe:n su.ch a.n i ntcrvi e .r seems ex1cd.i e!1t a n d 1 i k ely 

to f a cilite.te ai1 ·. djus r,1e:rt . I f no intPrviev: is held, or if aft er 

such int e rview t he case is stil l Ui.1e.c:jnsted , t'.:1d it c..·):1eP.rs desirabl e 

for 2. fi e l d agent to visit the re~)o~Jont, arran emen s for sucb visit 

sha ll be m,.de . ~h e f i e ld 2b0·1t , in adcli tiOil to secu.ri:.1c; evidence shall 

seek to brin6 about Cl:n c:~ dj ustment with t'1e s~1ondent if it :-:..;nee rs 

warrant eel. If efforts of st aff c1er. bers Di.1d f i e l <i :::t~ e,l t s a r c> unsuccessful 

in sec r'L1~, s e.id a djustment , the connl n. i nt sh<'.ll be s e t :i.' or hce..rinL; 

oefore the rO~)er Co ~rn laL1t s Com11i t t .c0 2:.cl both the om~1l2 i11 nt and 

res:1 ondent sh.:: ll be not i fied thvrcof. If, a fter such hcn.rin0 , t he 

co ~1 i11t i s still unadjusted and furth r f~cts or further i n t erviews 

~1:) ar li:.::ely to facil it c:te adjustment, arrC\.i.1,_;er::lent s lt1B.y be r"l.?.de to 

ha ve a f i e l d <:ltent visit t he res: 011clent . In case of doubt us to the 

mec:.nint, of the Code , ~· S to ot:J er facts , a;.1 official ruli<ls shall 

be obtai nee!. from the a :·y•ro:1ria t c source . 

Se ction 11: Failure to RGs-,ond 

9811 
- 532-

If r es·1onden t f e.il s to Eti.:.s,··c:: COJ ·l,·m.n c~ tion addressed him within 

a reas onab l e tir11e a seco:c'id. co ri1.J n:Lc::.ci ~~ n.sJ~ L1.:; for re·)ly 1.-:rithin a 

st a ted ')e riod sh:: ll be ser.t birn 1J.Y re.._ isterC'd mai l. Tneren.ft er if no 

re])l y has been r e'-'e i -,red or L . f' jT cAse:; if rcs~') ond nt i nC.icc.. t c s his 

umvillin0 !less or lr-c:;: of L1tel1"t i o''l of connl~ri ·'lb , or of r.12:,..in:; restitution, 

the case shn..ll be ssi t, ~:cci to c. fie l 0. _, :tl~~ for suc:1 f ll.l'thE'r investigatio:n ~.s may be ~- ec essL ~r to det Pr l\1i i1e t he f< CGs of the case at first 

h a.:nd. 

Sect io;.1 12 : HeB.ri n ...:s ~1 Com ll ."'.L1t s Invol vi n~ Labor Com1l n int s . 

He ri:1 _~s Oi1 a ll com Jl ai nts i :lvolvLlc- ~Jo t~1 tr::'cle ·wactice ;;"1d 

l abor com-·)l a L1t s s hal J. be cond~_<. ct e d ·Jv Labor Com)l a int s Committees . ,., . 

subject to the followL:.~ :)rovisi ons : 

l. A 1~ embe r of the TrPC:.e Pr actice Corrnl a ints Corru:1i ttee of the 

Divis ion or Subchvisior. unde r r1 hose jurisdiction the com')laint ha s 

a rise n sh2.ll sit on t h e I;abor Com )l e.ints Commit t ee but sha ll not be 

entitl e d to vote on labo1· q·u.est io11s . 

Section 13 : Reference of Cases t o HL .l1e r :-Jo dii.:es . 

a ) Aft er a Divisionc.l, Sub cli v isiona l, or Re~ io ne. l ComJlai nts 

Committe e has eYhaust e d <'.11 r e.::.so:1ab l e effort s L.1 a djust i i.1c; any com:') l aint 

throu5h i n t erviews, ~ in~s , f i eld i nvest i _ati oi.1 s , e tc., ~nd the 

com1Jl e.LH is still unc djust e d , i t mo.;y be r efer red to t he a~Y Jro:J ri te 

Natio:c1al Co r;rg l c:.ints Comwittee , to oe t her with r ec omr1e1d:::_ tio;.1 s for 

furthe r n ction. If at any time any Com 1l 2.. nt s Cornmitt ee is convinced 

t hat a com:1l 2.int conclusi ve l f..:e ts ·f orth a violn tim.1 which the res~)onde!lt 3h01.·v s :10 di s:')o sitiol1 to correct or to 2.djust, such com:1 l aint r.1ay 

be L awedi a tel y r eferr ed, tot:,e t he r with t he en tire r e·1ort , t o the 

rJat i one.l Co !t1.~1 ii1t s Committee vii thout follorrii.u t hro'..."'..sh t he rei:,Ul .:'.r 

:;_') rescrib e d routine , and the l'.:;.tionc-.1 Com1l a ints Committee sha ll refer 

it ) rom:9tly to the Nation2.l AdminisT,ra tio:.1. 

b) C2.ses sej1t b;y a Co r~)laint s C omrai t tee to 2 high er body for 

further e.ction must i11clude t he followi nt; Ci.r t a : 

a ) The ori .i nr.l com.l l o.int c> n d di e:; cst thereof. 

b) All -,rcvion s Co rres·~o:c1d.e nce on the case . 

c) All ori ...., i n<· l e vi d.c :-1 cc, i ncl uchn--= 2.ffid.avits and r e·1orts 

of fi el ci c>.ce11t s . 

d) P.c cortli.ne~~.d,.., tio r.s of the om~ l a i nts Corruni tt ee·. 

e) St a t emei1t s ma O.e b~r the S~ l0 1(1_ent at h e·:.rin.;s or int e rvi cm , n:c1 d c1n;j' written stateme ~1 s fil ed. b~r h i r:1 . 

f) A re·,ort of the o:.l~') c:in s ~arruni tt ce tha t re s~ ondent was 

furnished v; i tl1 :1o t i cc of the. cor .. nL ... int 1d r:.n ex:-1le.nat ion 

of his obl i ... J'.tion s in :c e s-H? ct to. t he s'··.bject matt er of 

the connl ... int; a co· e of the Code; a co:w of the Lrcdies 1 

B< ndba__, I :-1dustry Co U.c i;.1fonnatio~: for :1erso:.1s Charc,ed 

' . .r i t 1 Viol ;.tio;-:.s of the Code ; a sU.i11r.1ar:r of the f e.cts with 

ref ·.~ ence to the viol <'t i o·ls fou:1ci by the COIDJ.') l aints 

· Co:nmi t t C'C , a.::1 cl a:w other · Jert i nent i n.ct s . · 

~e i1de11t must e.l so be n o - ifi e d of r eference of c:my corrn l 2..ii1t C:\~ain st 

him to a h i __;h er body for f :..lrther a.ctio11 . 

9811 
- 533-

Section 14 : Procedur e for Ean<lli:-... Connl n, ints b'' ~ tio11al Corrn l rdnt s 

Co .. ~.-ri t tee . 

<~) u-)Oi1 rccei·.)t of a co ~1 lai: . ef~rred to it ~)Y Divisional, 

Su uCiivisio , or 3e0 io:rl.:l Com:1l r>i:.·1i:.s Cor.iu1itceec: , the tiol1:J. l Labo r 

Com: l aL1ts Cor. !1i ttee s:10.l l so :o tif~r t~1e oi .: <.~nt a:.1c1 r es:1ondent . 

The res:1on CJ"l t shr•.ll 1)c e.dvise..:. o.fte:..· E':Y .ro r 'i c:.t e exPr:1ij"l2.tion of the 

com~) <' i11t ·chat unle"'s he 'n<'..s o.dc.i t i'J:!e l f C'..ct s to suboit or unles~ he 

desi l'es ::' re- hnt.rL1_; the case Hill 1,)e fer rc~L t o the lT.:·.tional .Re cover;)' 

Admi!1istrrtio·1 , _. i th <' r C> ou est j~ o:;: e.~ al r· cti on . 

b) I f tl1e res·)oEde::t r e·•J. i es t~1at -)ro--, e:..· ac.just ment has been 

made t he cage hall ·oe r eferr eC.. bc-.c:~ to t he Com-)lc: L1ts COil !i tt ecs where 

it oricinat 8 G.. . I f PS')Ol de:-: su~ it s fur·c11er f ;-cts, or <cequests, a 

furt ~1er :1ec.'. :cL~, ~1e case s·11all oe .iocl~etcd for l~e ~r ins 'uy the 

Exec11t ive Se cr e t .:tr y of the :·at io112l Conr•l a. i n ·cs C:)Hnit tee . If after the 

hec.ri~l.::: t 10 r es:"o:1c: c:1t fc.ils to c om-1ly ,_.. ith ~1e <'cl.just ne·1t nrescrioed 

b~- t he !.lational orr::~ la ints Coril; :it-;;e e , or i f a~ KW time t he Co111.1ittee 

is ca:winced that t~ e r es lOi.ide:.1t sho\'.s 110 clis--,osi -cion to correct or 

adjust ·che case , it sl a:t.l lJe r-efer-::.·ccl t o t he Fat ional :a.e covcr:- Administrc-.tio:. 'co ...:- ethc:.~ 1:::!. t h a sv.iTl!·t ry· c:: fnc1~ Tecom. :-.- idP. or.s a.s the 

COi.1uJ.i tt ee £,18Y de sir e to ma::e . 

Sectioi.: 15 : Pow<Jr_ of' :.roclific;• ti or" Ol" Aool:Ltio:: of Subor dinate Ahencies . 

The Cocle .Auc ho:d. t:{· sh,-' 11 ~ ·re ·c :1c- power to l'E'.1o ve a::1:· Junber or 

members of ;: i1'f su ;or ·L1.-·te '-' ,c~ rc-r wi10sc ;~ )oint :le nt o:r elect ion rests c.. ·- t.o 

with t he CoC::.c Aut::.ori "C~f , or to J.10d f~r the functi o:i'"; or to a.bo ll sh 

entirel;~ a:1y agency , t::c cr m~ tio:1 o:c which c.~s s v:1th the Co cle Authority , 

if, in ·c}:e jult_.rii':" nt of t he '"'aa.e .Au.t ~10l~ it ~r , sllch a ctiOi1 V7ill :Jro:mote 

jus·c 211 c: e:t':t ic:i e::.1t uc'l.rnL1is ~:. o~1 Jf a:1y co d.e fn.::. cti o;1 ; --'lrovide d the: t 

L 110 eve:1~ s~1:- ll t no Co<ic Au·i~ho:.~i t:~ nave the ~ 0\:e_· to r~1 1ove J.ny . 

re-)resei.1ta·c i v es of' labol' or Lab or Corn1)l 2.L1t s COinn i t t eos . 

Secti o;,1 1 6 : Ex-')en ses of Co;;_ 1i ttec i'lembe rs. 

a ) ~Tatio11al Lal.lol' VJ;;:n l :-.i :1'ss Co;-:I :ittec. 

Th·~ ey.-·,,-, 1ses of ~;E; .e.Jbers of t i1e sc coGrrni tt ees shall 'ue :1ail by 

the 1 c .... dies 1 !-i<:.::-ldoc...J L1 lust1· r Cocle AuthiDri t. on a ::1i l eaL>e ancl per diem 

b a sis equal t o that ~')a c:i. to the r. e r.1bers of t he Ladies 1 Fandbe.E- Industry 

Co<ie Authority-. 

b) Regional Labor oi:: l: ~L ts Co .uitt ee . 

:.ier.1bcrs of ch :;< e Com.1 i t'ce£s shell h:·.ve tneir ex--)el'lse s ; air. 

the Di vi sio::. or Sub : .i vi sio:. n. ~e y i-:e_~ e }l.e 2 c1quartP-rs e..r e mainto,L10d , 

o;.: t he S<i.1 JP.~sis a~·!cl i :::. ·;, .e s· me .18-!:.:!Pr a~ other Co;ll.:Ji tt ees of t he 

Divis i :n Ol' i.~)div sio:..l A.c. en c7 :-:~1ere :1cadqua rters e.r e maj_n ine~ . 

Sectio:-1 17 : llee-1 -:l y Re~orts to -.~ . o--i CorrDl ai nt.s . 

The Lc:.clies 1 1-if-l.::G.u<:',.; nd. .1st:r. r ·~ e AJ.t} ori t ;· shall ·. 1e ~c v;ee~:ly 

re--)o rts to tLe A.et··,i:.-:i str!."> ·c o:r- set t L1 .'~r~ h t ~1e --mdJer of conmlai:1t s 

9011 
-534-

filed with it, the number of complaints adjusted by it, and the number 

of complaints which remained unadjusted, within each weekly period 

classified as labor complaints, provided that with the approval of 

the Administrator such weekly reports may be superseded by monthly 

reports within a reasonable time. 

9811 
- 535-

~ X H I J I T D-1 

Co!'lS t i b .J_tio:n nt~ Ey- I.a':rs 
-536-

CONSTITUTION AND BY-LAWS 

CODE AU'l"l}IOB.I TY 

FO:rt TlB 

LADI JS I HAlJDEAG IlJDUST:aY 

The Code Authori t:/ for the l::t cli e s·• Handbas Industry havinG been 

orsanized in accordance vvi th t he p rovisions of the Coda of Fe.ir 

Comyc titio:1 e.s a::::>"?roved by t l1e ?resident on I\'Ia r:chl4, 1934, h e reby 

establishes and mblishes the follov-Ting Ey-L-:-.ws: 

S~ction 1. 

Se ction 2. 

Section 3. 

Se ction 4 . 

ARTICL~ II 

11 Co de 11 as used heroin 111eans ti1e Code of i air 

ComlJe ti tion for the Ladies' Ha"1dbag Industry as 

alJ:!)roved by the President o:1 IJiarch 14, 1934 tot;e the r with any additions to or moc: ificatio::.ls 

thereof, a.nd include s all :!Jxecuti vc Ordel~s and 

rul e s and r egulRtions VJhich have been or ffi3.Y 

hereafter be made ~1 ursuan t to Title I of the 

liatione.l Indust1·i a·i R..;covcrji Act (here ina.fter 

r efe rred to as t h e Act) by the Presi~ nt or Administrator r e latinb to or affecting this 

Industry. 

The definitions in Article II of the Code are 

made a )art hereof. 

11 Due notice " as used herein means actual notice 

or notice by t e l epho:.1e or t e l eb raph dispatched 

at l east thre e days :·:)rior to the meetin~ or event 

f'Jr '.7hich notice i s required. Actual attendance 

at such meetint,~ or event , or a ·wa iv e r of notice 

executed in wri tin~ or sent by le ra~J h either 

b efore or after such meetins or ev ent shall be 

dceme c1 equivalent to "due :aotice." 

De f i:ni tion of 11 H . R. A. II -- "H. ?c . A. II P.S used herein 

means t :1e lTe tional 3.eoovery Ac:mi n istration. 

ARTICLE III 

Se ction 1. The Co de Aut:-wri t y shall have the ri::,ht to issue ceertifi9811 
-· 

cat e s of comp liance. Ac;re ;:;me:l t to corrDl y Y•ith the Co d~ 

s hall b e evidenced by si[nil;s; t hac:e certificate s i n substantia lly the f ollo•.-:- i r..:_, form: 

9811 

1

h e unde rsig ned has reaC:. enc1

• fully Ul1cl.erst ands tl:.e 

t e rms a11d con ~. i tions a: t:lt~ Co de of Fa i r Cmnpeti tion 

Ior the L'lL...ies 1 !-i:::.J.1cbac; Inclustr~' a-::,_o:ot·ed e.ncl a)p rove_d 

by tl e Ac~;nil.is t:ra tor for I .. =:.us trial Re.coYe r y on 

:.larch 14 , 1934, and t?le ee;,".l lat ons arlop t od by t he 

Co dJ r~or i t r Lfl.cli es I EanCbag I nd1:<.s try o)Ursuant 

Ju >~ to, a2'1~)::covL16 11.9 1 ?f'.;e Si-. ( 6) of.this form ; 

and ;:;.; r ees a t a ll t.!.m3s to obse rve an.: comp l y :i th 

sucn Co c."~e c.nc'. ne -u.l ::- tions an..::. a!lY oth..;r :re:;ul a ti Oils 

he r eaft er to ·be aoo~) ed. bJ such Au t ho i t y , and the 

"L.'L11.de rsit;n3 cL und.erste.nd.s t1w.t t:~e rit.;ht to us e l abe ls 

ado: t ed ancl. to oe issued by this Cocle Autho rity sha.ll 

be conditioned. u~;on such corlt2.J lianc c . 

The unde rsigne d fu:rths r agr e e s to furnish such info ... mat i on anc~_ to submit to such i nve sti.:;ations and 

ins:9 e ctions as t he Coc.e .A.uthori t y ladi e s 1 .Handbag 

I nd:o.stry :-.1!3-;)' ~; :r scribe to insu:ce t he fai tl ful pe rfon.1an ce of tl1e ob lit=}l tions a.s s1..uned ~- t he ·o.ndc rsi ed as he r e i n state0 . . .. • I. ' • ,. . . ~ . The unde rsigned he r eby a·)p li ed to the Cocl.e Authority 

ladi es 1 Handbag ~ndustry for l abe ls adop t ed and to be 

issued by t his Code Ai.-thori ty. The undo rsie;n cd agrees 

t ha t such l abels, •:rh en anci_ as issued, s h...,_ll b e attached 

only to han ba.3,s,' _•)Oclce t-Dooks and yurs cs manu fa c tured 

by t h,:; a'_)_.Jlicant or for h i s account , and tha.t such handbag s, ~~ ocke tbo ol:s nnd rses sha ll oe made unde r t he 

t e rms and concii tio ~1 s p rescribed i n t he Code and Regulations ado•) t e i')U.r suant t here to. - --

Th.:; ~)~J li ca 1t -u.nderstand.s that a ll h?.ndba :.;s , pocke t book s 

and. )urs 0s manufa ctu:::ed by h i m or fo r his e.ccount shall 

b ear such l abels. ··~ is a.?:P lica tion sha.ll B.2_) y to R.ll 

labe l s tn be issu.ad by t le Code Authority Ladi e s' Handbag I nC:ust_.f t o the undersigned. . 

Da t e 

------------------------ ditne ssed. by ---------------------

Add r ess of f itness 

-------,.-- . •. 

Ear.1e o f Co rr)Qration, ?a.rtne:1:shi:::> o r Individual 

Add.r ess 

------------------------------------------~--------

'By =---~----~----------------------------~------------- Pro;_:>erl y aut :i::.o:;:i zocl offi ce r or part ner. (I f corp oration e.pply LGa l.) 

S3AL 
-538-

Section 2. The Code is binding on all members cf the industry, 

irrespective of whether or not they agree to comply. 

ArtTICLE IV 

Section 1. The Co~e Authority is an agency of limited powers and 

functions established under the authori tJ7 of the National Industrial 

Recovery Act and by virtue of the Code. It shall consist of such 

number of Industry Members and Administration Members a .s may be provided for in the Code. The Members of the Code Authority shall hold 

office for 12 months and such term shall begin on . :tvJarch 26, 1934. 

Their successors shall be elected on March 1, 1935 but shall not 

take office until March 26, 1935. 

Section 2. Each group, entitled by the Code to select members to 

the Code Authority, shall select successors to the present members 

on or before March 1, 1935. Eac!:.. group shall certify and present 

to the Code Authority. 

1. A list of its members. 

2. ~ne notice regarding the proposed selection 

of the successor members ·to the Code Authority. 

3. The minutes of the meeting at which the 

selection wa s made. 

Section 3. Each group that has been authorized by the Code of 

Fair ·Competition to select representatives to the Code Authority, 

may also select an alternate or alternates. The alternate oralternates may attend meetings of the Code Authority, but shall not 

be entitled to participate or vote in the business of the meeting, 

unless such alternate or alte rnates have been directed by the Chairman of the meeting to take the place of the absent member or members 

of the group, which the alternate or alternates represent. 

Section 4. Vacancies in the membership of the Code Authority for 

unexpired terms· shall be filled by selection by the surviving representatives of the group in which the vacancy has occured. 

Section 5. The Administrator shall have the power to remove Industry 

Members of the Code Authority for cause, and to fill any vacancy 

resulting from the exercise of such power, pending the selection 

of new members. 

Section 6. The Administrator shall be the judge of the qualifications 

and term of office of the Administration i

1

Aembe r and shall have the 

power of apyointment of such member. 

Section 7. In accordance with Office Order Ho. 81, it is provided 

as follows: 

9811 
-539-

l. The Ad llinist:..~ator \7ill 8.')~1o int ?. labor 

adviser anc~ a consume r adviser to the Aclr.1inistratio:1 I':iember (or Eembc rs) of .:;a ch Code Authority. 

Tho labor and 8ons1.1.1110 r Arlvisory 3oarcis will immediat ely submit to the Arministrator lists of nominees 

qualified for t~ 9 po sitions. 

2 . The ACtministration r.;er.1b0r vvill arranbe r:i th the 

Code Authority that t ese advisers have access to 

the minutes of all Co de Authority meetings and 

of· tha meetings of all Code Authority agenci e s or 

sub-cornmi ttees. The Advisers are not members of 

the Code Authority , and i? ill at .... end. rneet in15s only 

upon l~equest of th Administration member or of 

the Code Authority. The' have , ho\7ever, the right 

to appear before the Code Authority to wake statements on specific subjects. 

3. The advisers will keep all information concerning the industries to which they are asi gned, 

gained by virtue of their ~.Josi tion, strictly confidential. T~ey wi ll confine their r ejorts, advice, 

recommenuations, and other statements r egarding 

these i!ldustries to the Administration ~;emba r of 

t he Code Authority, the Divisional Admin~strator, 

and the a!Jpropriat e Advisory Board. 

A.,_-qT I C L~ V 

Officers and Committees 

Section l. The CoC.e Authority shall choos e a Chairman vrho sl1.all 

preside at meetings and exercise such other functions as may be 

delega tod to him by the Co de Authority. 

Section 2 . Tho Codv Authority sh~ll choose a Vice-Chairman who 

shall pre side at f'.ny moe tins at which the Chairman is absent or 

is disqualified for any r eason, and shall possess the same authority at this meeting that t- e Chairman poss e sses. 

Se ction 3. TJ.1e Code Authori tJ shall cho ose a Sccrstary who shall 

k0ep all r e cords 9.nd minutes of the Cocle Autho rity and all other 

matt e rs of ·,rhich a record shall be ord0r ed by ~10 Code Authority. 

He shall issue notices fer a ll m0etings. 

Section 4. Th0 Code Autl ority shall choos e a Treasure r who shall 

safet;,uard and account for tho;:) funds of the Code Au thority, keep 

accurate and full records of receiy ts and disbursements, render to 

the Co de Authority an accounting of all transactions and perform 

such othe r duti e s as may be assigned by tile Co de Authority . 

Se ction 5. The duties of any officer may in whol e or in ~a rt be 

9811 
540~ 

assic,"1ed un cr autho:ci t:r o:f t he CoC:a AuUJ.ori t:r to an a:;ent or 

agency. 

Se ctio"1 .6~ The Co r.e Authorit~r ma~;· choo se such conficlei1tial 

ar;ents or ace"1cies, 8.s it deems necessa1.·y, i n order to carry out 

any of t he; functions, ?owei.~s ancJ. duties s t ec1 in it by the Code 

anc: shall arranc;e the comD ;3!1SB. tioi-1 for these confi clen tial a6en ts 

Ol' [; Gi1 Ci es ~ 

Section 7. All i.~ecords and minutes of tho CoC:e Authority shall 

at all times be at t l1e dis·oos<1.l of tha Adninistra tor. The Industria l, Labor and Conrcume rs Advisory :Boe.rds o f the :J3A shall Ut?011 

approval of the A<.linL1istrator, have a.c ce ss to such recor · s, and 

shall have the right, u_po:1 reasonable notice, to appear before the 

Cocle Authori ~r i:1 s e ssion ol~ to submit t? it, 9.ny criticisms, 

comp lain t .s or sug£;estions; and i n )Urs-uance thareof, may a:tT) eal 

to the Administrator. 

Section 8. . r;I:he Code Autl1ori r may a:p)oint and. provide for the 

expense of some of e.ll of the follo•:'ing stanclint; cor.-rmi ttee s and 

such other cornmi tteos as it ua.y from time to time be necessary 

for carrying out its functions, which committees shall operate 

under the c: irection of the Co c_e Aut~19ri t y : 

a) Fine.nce, 3udc;et anc. Label 

b) ~~ define SSJmi-sk illecl worlc:;r 

c) 7-o p rovi de r eg·ula tions r egarding i1anclicapped 

lJe rsons 

d) To ~; rovi de i.~e(:,LJ.la tions fo r the safety anc~ 11eal th 

of enJi)loyees 

e ) To study the 

f) To clraw up a 

E:; ) To draw up a 

h) 

i) 

ceo t al:e cal~e 

To clevelo1) 

lJra ctices 

es tion of hoQewo rk 

wri tte11 e.greement fo~· contractors 

cons~itution ancl by-laws 

of coordina tion v-ri th other co de s 

in(::_ustri e.l :r.; l annL1g ;;mel f e.i r trade 

j) To e stahlis:O. a 1..mi forrn cost syst em 

k) 

1) 

To dravr ~) re.:;ulations ret;ardint; s t yle j_) iracy 

To e stablish a syst em for t he issuance and sale 

of l abe ls 

m) To establish r o{:,-Lllations to 60vc:cn salos below 

cost 

n) To colle ct statistics and reports 

Se ction 9. The Co d.e Aut hority shall have the p owe r to remove from 

office any m.ember or mmubors of any subordinate agency createcl. by 

t l1e Code Authority if suc11 member or membe.L s Wel~e a:p:p ointed to it. 

It she_ll also have the :;_:>owe r to modify tha fun c t ions of , or to 

t ermi na t e the use of, any suc:1 a t;ency i f in its juc1c;men t such action 

is necessary f or t he p rope:c administratio-,1 of t he Co d.e . 

9811 
-541-

A3.TICL~ VI 

Se ction l. The ::!::Cinci:9al office of the Co de Au'c!1ori ty shtJ.ll 

b e locat ed in t h3 City or' Hew YorJ::. Tl1e CoO.a Authority may -3-lso 

establish and maintain b ran.ch offic;;s whareve1~ it daems necessary. 

Section 2 . The Coda .Authority s~w. ll mae t on the s ocond Thursday 

of aa ch mo::.1th at its p rinci:;;>al office unless otherwise de signat8d 

by t~1e Code Authority. 

Se ction 3 . Sp e cle.l meetinc s of tha Cor.e Authori t ;y-' may b e CSJ.lled 

by the Chairman orb tl1e Chairman u~po ~1 tJ.1e written request of 

the .Ac~mini s tra tor, his re:1 r qsenta ti ve s, and .Aclmini stra tion i.iGmbe r, 

or t .;o Industry Vlcmb e rs of t he Code Authority. 

Se cticn 4 . A ma.jori t y of th" inc1.us tlJ' members (regular reyr an

tatives or alternate s dire cted. to act as regular r ..... prosentativos) 

of the Code .Authority shall constitute R quorum for the tran saction of busine ss. J o de t cl'mina tion of t he Co cla A1

.1thori ty shall 

be made without t he af~irmativ0 vote of a majo:dty i n m..1mbers of 

the CoG.e Authori'-:;y. I f a 0UOl'UIJ b e ·-? r e s ent Ht any t;ivcn me e ti!!g 

and a majorit- of such quorum s£18.11 affirmative l y e):Jrove a b iven 

mat t a r , t J.1e sa.::e shall b eco ne e ffe ctive •hen a:1cl. if the rc:: shall be 

rec ,~ ::. vad and filed i n Y:ri tin£ in the office of the Cod.e Authority 

ass0nts t Le r a to which adcle d to t he number voti:·~£ in pe rson shall 

constitute a majority of t :i1a ind.ustry members of the Code Authority. 

Section 5 . ~he Co;::_e AuL~ori t y , a ll subord..L1a t a agencies, and all 

Indus trial .Aclj u s tman t Ar.;a-lci e s crae t ad ·b.,- t he Co cle Au tno ri ty , she.ll 

kee~; a comp l e t e r e cord o:C ~Jro eed ngs a t all me ting~. ai1d c ertified 

co:?ies of minutes anc,_ other corc~s and cla. ta sl-:.e.ll be:: fil ed. as a 

permanent rocord, B.t the busine s s office o f t he Code Authority e.nd 

with tho AC11nini s t :'B. to l' o f t 11e 11 . ;t. A. 

Se ction 6. Pen.11an6nt r e cords of t he Co ~ A1..1.ti1ol'i t~r f iled v i t h the 

N. :rt. A. shall b e availe.bl a to t he Aclviso ry :Boards of the 1-T . :2. A. 

subj e ct to the ap-yroval of t ha Ac.rninistrator. Publication o f inf ormation thus s e cure d shall not b e made except with cons ent of ~1.e Code 

Authol'i ty. 

A:rtTICLZ VII 

The Co cla Autho rity shall e stablish Industrial Adjustment 

Agenci e s for t ila ~I UI3>0 ; o f h.:::.ndli11G rac~e Jractic o dis-

~J ut es and l abor dis~Jutes . 

Se ction l. The Co C.a Authori t:· shall alJDoint e. Tl'ade Practice Com- - . . plaints Committ ee of t h r ee me:-.1b e rs. e .AdmL1istration memb e r shall 

be a member of this committee without vot e , ~Jl.:t Tiith a veto ~vowe r 

subject to r e vi ew b y ~1e Admi·1istra tor. An exe cutive secre t ;::-y a.nd 

l egal counse l s!1e.ll also be a~J-~Jointed e.s e ither memb ers of ~1a committee or as emp loy~es . 

9811 
- 542-

This committee shall handl e trade practice cor laints and disputes 

in the first i n stance , a nd adjust t hem in a ccordance n ith t he affected 

provisions of the Co de , and. L1 accorda~1ce vii th the }1rovisions of the 

Na ti onal Industria l rte cove17 Act. 

The functions and powe rs of t his comn i t .t ee rna;/ i n who l e or L " ua rt 

b e de l egat ed. , unde r authority of t he Code Authority, to confic.ential 

agents or agenci e s. 

Se ction 2. The Code Autho rity , i n a cco rdanc e with Administrative 

Orde r No. X-12, dated Utarch 30 , 1934, sl1all aj"Jpoint a n Industrial 

Relations Committee of six mamb 3r s , ons istin~ of t h r ee i ndustry 

merabcrs and three la"bo r memb e r s . 

The Aclrninistration memb e r shall be a memb er of this 

out vot e but with a ve to p ow3r subj e ct to r evi ew by 

An exe cuti v c secre tary and l e(;e l counsel shall also 

ei t he r memb e rs o f t l1e cornmi ttee or as emp loyees. 

committee , yritht he Administrator. 

be au-,Jointed as .... 

This committee sha ll hancU ·3 labor COil1J.J l a ints an0. labor d.isputes in 

the first instance a:1d adjust t ll.Jm i n a cco rdan ce Yvi t h the affected 

provisions of the Co de and i n a.c cordc>.nce v.ri th t J.1e provisions of the 

lira tional Recove ry Act. The functions ancl. lJ OV!e rs of t his Corn•·1i ttee 

mE'.y in who l e or in p2.rt be clel ega t ed. under authority of t '1e Code 

Jluthori t y to confi dentia l ;--~,; nts or agenci es. 

Se ction 3 . The commi ttee to de v t:l lOlJ i nclustrie.l ;lanning and fair 

trade practices, which sh ll moe t 7i th the trade :pr a ctice · coDmi ttee 

a~:pointecl 1..mde::c such ot ~..=: r co d.es e..s rJay be r elated to the inc:ustry, 

for the }JUrpos e of formulating fair tra.cle p ractices to ov ~1 the 

r e lationships b e t vwen :production and distribu tion emp loye rs ·unde r 

t h i s Co de and unde r suc~1 others, to the end that such fair trade 

practice s may be ro os Gd to the Afuu inistrator as amendments to this 

Co o.e and such othe r code s. 

S2ction 4. Pursuant to Articl e VI, Se ction 8 (d ) of t he Code , the 

Co de Aut~ority may us e such trade associations and other aGencies 

as it deems Ilroper fo r th.;; carrying out of any of its activities 

provi ded for h e r e in e.nd to pa;y such trade e.ssocia tions an ~ a Genci e s 

t he cost t he r eof, p rovided that nothin6 he r e i E shall r e lieve the 

Co de Authori t~r of i ts duti e s e.nd. ~J on ibiliti es under t h is Code 

and that such t rade associations and a t;encies shall at all tines be 

subject to an<.~ co 1~ y 'id ~1 t he') ·orovision s hereof. 

A::tTICL3 VIII 

Se ction l. The Co de Authori t; ; may i nclude i n its ex·Jens e accounts 

a ll nece s sa r y and ~J roy r costs of code aC:.mi n is t ra tion. 

Se ction 2 . 'rhe ex Jen -3 of aclministe ri n.::; this Coc.v shall be assess ed 

by t he Co<.le Authority 8.(-;a i nst a ll 1:.1embers of t he· inciustry , subje ct to 

s uc11 rul e s and r egulations !3.-S t :1e Acl.ministrato:r rna · a'lJ'iJrove . 

9811 
-543-

Secti m 3 . The Code Authority shall ~re~are a. detailed budge t 

upon which the ass essment sr.all be b8_sed . Pursuant to the Code , 

t he budt;e t ano_ :p lan of asse ssmen t mus t b e a _)!Jroved by the Ad.r.linistrator . T~1is budt:;et anrl :p l an of assesr,ment fl1..a ll be avai l able to 

all memb a::.~s of t he industry and sue}~ memba rs, as dasire, sh.'1..ll be 

g iven an o:pportuni ty to b e heard on tne me thod nnd amount of a ss e ssment . 

Section 4 . Purs-uant to Articl e Vii of the Code , and subject to the 

8.p)roval of t ite Admi n istrator, · t -'-J.e CoLle Authority shall have the 

exclusive ri.:;ht of this inc:ustry to issue and s e ll lab e ls to t he 

memoe rs t he r eof. The Colle Aut .. 1ori t;y shall e stablish rul.s s a nd r egulations and ~J) ro~: riat e mach i n <:;ry f or t he iss-u.ance and sale of lab ls 

and the insye ction , e:mrni na tion i1 ~- s1.1.pe rvi sion of t he lJ ractice s of 

mer,1b e rs of the i ndus try_· usi nt; sucl1 labe ls fo r the :pur:!os e s o f ascertainLl£; the ri:;ht o:l' su ch rilenb e rs of t he incms try to the con ti11ued 

us e of said l abe ls; or n~o cti n; purc:r.aso rs in lyin~ on sai d · 

labe ls; a n d of insurL16' to oa c~1 L1di vi due l memb e r of tJ.1e i nc".us try 

t hat t he symbo lism o f sai d lab.sl vrill b e mainta in.s d o;r v irtue of 

corrrplianr, e with t he ~) revisions of t his Cod ~ by oU:.e r mer.1b e rs of t he 

in ~_us try using saic1 le.b e ls. 

Se ction l. The Cocle Au tho_ i t y shf>.ll si na t o a eli sin t eres t e d 

· statistical a gency ( t l i s may 'be a Government 3ureau) vihich sl'1a.ll 

colle ct informa tion anC!. statistics f rom membe r s of t he Incl.ustry 

for t he compilation of i..~eD ort s as t o wa~e s, hour"' of bol~, numbe r 

of v.ro rkars, t ;::_)c S of \-,·orl·ars, :)rocluction , t ype of me rchancl is e p roduced, volume of sales , rna t hods of sa s, and any other )e rtin nt 

matte rs, L1 accordance it~- L1e ~~ revisions of t '. e Code and deemed 

ne ce ssary by t he Co de Authc rity and t he dire ctions of the Administrator t he r eunde r . I n adcHtio::-J. such statistica l i nfo:tmation as the Ac.-

ministra tor mny deem n0 ce ssary for t he lJUIJ.l o se r ·=> cited in Section 3 

(a ) of the Act, shall b e furnj_ shed. t o sue:: Fede ral and Sta t e a gencie s 

as the Alli11i ni s t ra tor ffi?.y cle signa t e . 

Se ctim1 2 . Such s ta tis tics e.nd information, exce=1 t as o t h3 n--i s o may 

b e ~J rovid d ~T t l1is Article , sh.'l.ll-be ke t conf idential. f o ' ub lica -

tion t he r eof L1 e.ny ma nner s:!1a ll be macl.e to anyone , othe r t han in 

Sl.u"m'Oai"J fo rm an;lc , ri t hout indi viduE.l i den t i f ica tion; ) rovideLl , however, 

t rat any of such statisti cs and i nforrnD.tion sh?.ll be made a vafiD.l\.le to 

the dr.:~ ini stra tor. Ai1Y r!lcmber of t he Co ci.e Aut!10ri ty or office r or ac;en t 

the r eof who disclo se s such r..fo ma tio n i n violn tioi1 of t his section may 

b e r emoved f rom office b;7 t he c~.r.1 ist rator , ei t h-.; r on ~1 s ovm i n itiative 

or uuon comp l 2.int made by any ')Li.rt ,- affact ed b y sue -:. cUscl osure • 

• 

9811 
-544-

ARTICLE X 

Il~T~RPR:2;TATIOHS , EX.CiPTIONS , EXJ?.i?TIOlTS, MODIFICATIONS 

AHD Ai.:::::.ND!vl3HTS OF C Oj)E. 

Section 1. Definition o f 11 Int e rpret.o>.tions 11 ---This t erm includes 

a ll rulings on t he meaning of th~ language of a co de where t he 

intent of tha t language is in cloub t; i. e ., where a l':nov.rl edge of 

t he surroun0.ino ·circumste.nces and of tbe general :Policies of 

N. 3. . A. on the lJa rt of t he :;>erson making the rulinbs, fails to 

remove t he necessity f o r a decision on vrhich reasone.bl e men , 

equally vre ll inf ormecl. , mi ght diffe r . i.'ihere no de cision is r equired on which r easonabl e men , e·quully we ll inf orrnecl, mi ght 

diff e r, t he ruling is not o.n erpre t~cn but mere l y an ex:!lanation. 

Sc; ction 2 . Definition of 11 ::=::xcel)tions " and ~~ ~~:e!TI2:)tions n---These 

t e rms include all rulin s whereby an i ncli vidual , g roup, or class 

is r el eas ed from the fulr oneration of a prevision of a code . 

Section 3. Definition of 'll'Aodifica tions" ---·:rhi s t e rm includes a ll 

rulil1gs whe r eby a co de i s mne:ndad b;y adci.il1b a p rovision there ~o Glr 

changinb or omittinb any rovision thereof. 

Se ction ::. Provisiona l In t e r0re t a tions---.Then t l1e immediat e course 

of action of t he )e rso n seekirlb an int er,:;retation may 0.eyend on the 

answer g iven, the Co C.. e Autho r ity she.ll t, ive a provisional rulin; oil 

the inte roretntion requestecl. At t he same time , it shall b e mad.e 

clear t he.t the rulin[ so 6 iven is subject to review by the U. 3.. A. 

This provisional ruling sile.ll not be circula::cized throughout the 

Indus try, but shall be t:; i ven soL;l y fo:t gui d.ance cf t he particular 

pe rson or l)e rsons .involved, i n cluding any inte r est ec. party or crou;,o 

who 1!'' 0Ulc~ lJe a ff e cted by :1o t b e in!§; irnmedi a tely informed of the 

provisiona l ruling . The tra:nscri:Yt of such e. ')r isiona l interpretation she.ll b e sent to t}J.e iJ. ::t. A., rr hir~h rJi l l notify the Co c~e 

Authority re;arding the a:o:•_) roval, disapprova l, or modifi ce.tioil of tha 

interpre tation as g i ven. 

Section 5 . Requests for I mmed i a t e Int e r) r e tations---··.-n·.ere the final 

rulin.s on a n int,;:r--;)re t at ion must b e me.Cl.e m,ne c~ F- tel~ , a ncl a provisional ruling by the Co de Authority is :c.ot suff i ci ent, the Co cie Authority 

shall com.rmmicat e v7i t l1 the lT . ·-:. A. anc: r equbst an immediate ru.lint; 

on the int ~)reta tion. 

Section 6 . Final ruling s---n o fine.l nllin'-__ s on rna tters cov e r eC. by 

Se ctions l, 2 and 3 , of this Article may be made exc ep t by the Admi nistrator, aft a r such notic e, a:.1c . hearin.; as he may r equire. The Coc.e 

Authority sha ll Gi ve the wi dest publicity to final rulings. 

Se ction 7. Procedure on ~xce~ tion s and 3xeill)tions---In a ny case in 

which a memb e r of the Incl.ust ry believes that the ope:cation of the 

Code os s m1.C::.ue hardshi p , or is not carrying out the pur.pose of 

t he Act, such memb e r may set f orth such f acts i n a pe tition to the 

Co de Authority r equesting a:.1 exception o r exem~Jt on from a spe cific 

9811 
--545-

;;rovision of the Cod 3. T11e Cod a Authori t:l , within irt ' days 

8.ft-3r such _}e ti tion i s f ilod , s} ::·.11 submi t i t , t oge t ha r with i ts 

f incling s anc r e comrnenda t i ons to tha AO.r11i n i st :te.t or. I f t he Code 

Au t hority fB.ils to make f i ndi ng s and r e cornr!l ..... nO..a tions wi t h i n such 

0or od , o r i f i t om 1en c1.s ..:i.J.smi sse.l o f t !1a :9at i tion , such memb e r 

of t he I nch.1st:t y rna.y :-9e t i ti on the Ac'ullini s t r a to r for an exceiJtion 

o r exerrntion . 

Se ction 8 . ?roc edu e on Amen<lJn ant s a:ac'L Hoclifi ca tions- --All 

p ro:Josa ls f or amendr.l.ents to or modi f i ca tions o f t :!'l.e Co de b y 

memb e rs of t he Industry , sball oa submit t e d in t he first ins t a nc e 

t o t he Co d d Au t ho rity f o r its r c COlt1IDendation. The Co de Authority 

shall i rrunedi a t e l y co n si der su ch p rop osa l s and shall re commend to 

tha Ad:ni ni s t rator ap:p rovo. l , mo(._ i f i ca tion , or disapp ro val t he r eof. 

Se ction 9 . Co nsu l t a ti on v:ith Ac". nli:1istration --- 1e Indu s try 

;-;iemb e rs s ha.l l con sult vlith ~1 e Admi ni stra t ion ;,iemb e r o f t he Code 

Aut hori t y and h i s Aclvi s e r s i n conne ction v!i t h t h e ·J! r epara tion of 

findi n[:s a nd r e commendations for i:i1t e rp r e tat i ons , excep tion s , 

exemp t i ons , modificati on s, and amm1dmen t s to the Code . 

A..~T ICL3.; XI 

Se cti on l. Prococlur e Gove rJ.1Lli::, Arb i t ra t ion---','Ji t h '~e approvB.l of 

the AdmL1istrato r , t he Co(e Au t h or it:r may e stabli sh roc edur e f or 

t he arbi t rati o11 of s·o.;;cif i c t ·TJJe s of trade ·)ra c tice and l abo r - u . . -

controve r si e s arising c~_e r t he Co ~e . Such __J rocedur e should 

accord r.ith Sta t e R-nd Fec,_e r a l l aws. 

RT ICL~ XI I 

COD3 AUT~-!Ort TY EGULATI O:,TS 

Se cti on l. rteg-ul B.tion o f Procec:ur;:;---I n addition t o t h e By- lav1s 

t he Co C:.e ·Au t ho rity me.;.,- ad t :::te.;ula t i ons· to 60Vc l··n i t s lJ ro c e clure 

i!1 t he exe rcise o f powe r s ; ra11t ecl. t o it lmde r t he Co d e , a.n c:_ t he 

l i mits o f ·,-,hich are de fined L t he Coc.e a11d 3y- l a vJs . Suc h R3gut ions s he.ll outl ine c.e t a.iled p rocedur e s, the f ur1damenta ls of which 

have b e en embo G.i ed L1 t J:1e :i3y- lav s . r.rh ey sh.q_ll ·be subj c ct to t he 

clisayp ro va l o f t he A0mi n i s t r ator. 

Se c t i on 2 . Iclen tifica tio:.1 o f Co cl.e Authori t ;y Regu l a tion s---All 

Code Authority R0gu la. tio:ns :m~. a l l : .ame:i.1CIJrien ts the r e t o , issued in 

ac cordan ce vii t h Se c tion 1 above , she.ll b e cl ea r l y des cribed a s 

''Regu l ati ons o f the Co ci.e Au t ho rity of t h3 Ladi e s ' Hp.ndba b Industry ", 

a nd shal l b e i dent i f i e d L 1 such manne r t hat avery gene r a l subj e ct 

shall b e de signated b y article numb e r , e..nd eve ry Je ci ic p rovision 

of each articl e b e s e ctio!l munb e r . 

Se ction 3. Amendments to ReGUl a tions---Code Authority Regul a tions 

may b e amende d in accordance 'IV i t h }_? rocedu re si mila r to tha.t required 

9811 
-546-

for the ini tial i s suance of such r ebulati,ons.,-

ARTI CL~ XI I I 

POW3RS AUD LIABILITIZS OF CODE AUTHORITY 

. . 

Se ction 1. Non...liabili ty of Code Authority Membars--Nothing conta ined 

in the s e J3y-la.ws shall constitute t he memb e rs of the Cocle Authority 

partners for any purpos e . Nor shall any member of the Code Authority 

b e liable in a ny manner to a:ayone for any act of any othe r member, 

office r, abent , or employee of t he Co de Au thority. Nor shall aay 

memb e r of the Code Authority , exe rci si:"lg r eason.Etbl e cliligence in the 

conduct of his duties h e r eunder, be liab l e to anyone fo r any action 

or omission to act under the s e By-laws, or under r egulations adopted 

pursuant to Articl e XII of the s e By-laws, excep t for his own wilful 

misfeasance or nonfeasance . Nothi ae; here in shall r e li ev e any memb er 

of the Code Authority from dutie s or r e sp onsibilitie s os ed upon 

him by the Code . 

ARTICLE XIV 

EI'FECTIV::G DAT~ ~w AJ·.EiiDMSNTS OF BY-LAWS 

Se ction 1. Zffective Da t e---These :By-laws shall b e come effective 

Hhen approved by the A..d,mi:nistrator. 

Se ction 2 . Amendments to 3y-Laws---Amendments to t hese By -lavrs may 

b e adopted by a 2/3 (tvvo thirds) vot e of t t.e Coc:te Authority, and 

shall b e come e ff e ctive vrhen ~)p roved by t he Administra tor. 

ARTICI3 XV 

G:MGRAL PROVISIOI-JS 

Se ction 1. Subordination of By-lav1s to Coc1e and Act---1Jo provlslon 

i n the s e By-laws shall b e so e.ppliad as to conf lict with any provision 

of the Ac t or of t he Code . 

Se ction 2 . Availability of Jy-laws---Th"3se J3y-la1flS a·1d all Regulations 

and a ll amendments to suc}l B:r-lD.ws ancl Regulati ons sh ... .:::t ll be made available to a ll memb e rs of t he Inc.ustry. 

9811 
9811 

E X H I 3 I T E-1 

Brief- Nationa l nand B~g lesmen s 

As s ocia tion 
-548-

EXHIBIT E-1 

B?..IEF O:b' T P.E 

NATIONAL BANDEAG & ACCESSORI:CS SAL.cJS.;i:l:1T 1S ASSOCIATIOl 

Res-pe ctf ully submitted by 

The Nationa l ~andbag & Acc oessories Salesmen's Association re-presenting t he salesmen in the l1andbag and. a ccessories indus try has among 

other objectives a nd -purooaes tb.e improving and a idi!lg a spirit of 

coo-pera tion between emnloj-ee ancl: Irlfl.nufac.turg·r, cooperation with the 

code authority and the N.l:la and further t he p romo tion of neace and 

harmony in the industry in said r e l a tionshiP , t hus resulting in putting 

the industry and t hose who deriv-e the ir living frcim ·it back on a sounder 

and more profitable basis. 

Now, more t han ever, are t he rrctrn~cture s 1 problems the salesmen 1 s 

problems insofar as it r ema ins in the povve r of some 900 handbag salesmen, 

who travel t he ~8 s tates to patrol t he ir territori es a nd aid in enforcing t he handbag c ode . 

Prior to 1928, t he h~ndbag salesmen, c olle ctively , we re a highly 

re spected ou~ of me n, upholding t he dignity of ~e ir calling earning 

a substantial livelihood for themse lves an-.1 th·: ir fatnilies, and doing 

human se r vice for their employe rs who reaned t he financia l rew rd. 

During t he pre-deuressicn d:lys : l t wa s unhe~.r d of for a handbag salesman to represent more t l1a n one manufa cturer. This c onditi on 1,vas made 

possible, not so much beccuso busi nesf cond i ti ons we r e go od, but due to 

the f a ct t hat t he e of commissions w~s mor e munificent. In years 

prior to 1928 , a t lea st 951 of t h e lv=mdbag sa lesmen made money for 

themselves and their errmloyers becau s e their commissions ranged a-pproximately 101 and UU'~'~ ' -.rds . Howev er, since that time , condi tions have 

reversed and 95:~ have not been able to eke out an exist ence. 

Not only were t he r R.te of commissions higher but in nearly 100~ of 

the cas es t he re were personnl c.ccoDnts "Jlus expE.nse accounts for 

traveling. The sa1esr:1en conte1 d tb1.t during the last five years there 

has been a r egular ~c l:eme on L1e nru·t of tne manufP-cturers to do away 

with this f ormer ethi cal way of doi::1g business ant employing sal esmen . 

As a result of t hese t actics, d'l'.e only to t.,_e manufac turer 1 s heartless 

attitude to'Vard his salesmen , the salesmen's ea rning powe r has been 

reduced so drastic lly t hat he is todc..y at the uoint of despe r a tion. 

Theref ore, these unfair 1;r a ct i ces on t he part of tl1e m:mufac turers, in 

addition to the fact that the volume ba s beco::1e greatly r educ ed have 

brought about t h i s -protest and r equest for a c onfPrence to t ake up these 

matters in order t hat t hey mi <:!:ht earh a livElihood for themselves and 

for the ir f amilies to which every American citizen is justly entitled. 

981~ 
-549-

For the sake of figures, the man who did a volume of business of 

$100,000 a year gross sales, prier to 1928, was paid a commission to 10% 

up to 15% and he would earn approximately $11,000 a yea r gross. The average salesman made from 2 to 4 trips yearly and received 95% to 100% shipments on his sRles. Full commissions were uaid on all business. 

Contrast this picture with 'the present and we find that this very 

same man who sold c~mnarative figures of $100,000 up t o 1928 is fortunate 

if his sa les today are $50,000 gross. We find instead of receiving 95~ 

to 10~ shinments, he is fortunate if his shipments are 70% and he is 

paid, in the majority of ca ses, a corrunission of 5~ or less on net sales 

instead of gross s a les, as indicated by the annexed schedule of r a tes of 

commissions uaid by 32 renresentative firms. He now finds it necessary 

to make at least 4 to 7 trius yearly, with the cost of traveling and 

doing business no less than 1929. 

Every man~acturer embodies the selling cominission in the cost of 

his product and, theref~re, should take anything out of his own profits. 

However, on the other hand, the manufacturer who advances his representative a drawing account against the cut com~ission, finds that at the 

termination of the year, his sa lesmen are indebted to the firm, having 

been unable to do enough business to cover his dr8wings and the average 

firm is then inclined to wipe 011t this deficit. 

Had the sRlesmen been paid a respectable rate of commission, as 

of old, in most cases there would be no indebtedness incurred. H~w~ver, 

working under the prevailing lower rates of commission, the manufacturer finds that it costs him 4~ to 5~ more. This _naturally make~ it 

necessary for the manufacturer to take an unnecessary loss, wherea~ if 

a reasonable and justified commission were originally figured into the 

cost of the product, this loss would be eliminated and both the salesmen 

and manufacturer would finish the year with a profit, retaining the salesmen's morale and the employer is completely satisfied, for he too has 

made a profit and assists in binding the ties of · a mutual partisanship 

and creating a spirit of friendly relations. 

Pressure being brought to bear as in no other indu3try, due to lack 

of coordination and cooperation, the handbag salesman has been forced to 

carry more than one line. The result is that t oday 95~ of the salesmen 

carry from 2 to 5 non-conflicting lines in order to earn a meager livelihood. No one man can give his honest effort to so many lines and do 

justice to himself or to his employer. 

The conditions above outlined necessitate the making of the following improvement and changes: 

9811 

1. Salesmen in the industry should be granted snecific territorial 

rights and these salesmen should enjoy all the rights and benefits of any and all commissions that may accrue therefrom 

directly or indirectly. 

2. Salesmen should receive their commissions based upon gross 

sales. 
-550-

3. Salesmen in the industry should all receive uniform commissions on gross sales in accordance with the following 

schedule! 

. All merchandise. sold u~ and to including $9.00 a dozen, 

61 commission on gros~ sales. 

' 1 All merchandi~e sold from $9.25 to $30.00 a dozen 7~ 

commissions on gr0ss sales. 

All merchandise sold from $31.00 to $72.00 a dozen 

10% commission on gross sa les. 

All-merchandise sold from $72.00 ~er dozen and up, 12~ 

commission on gross sales. 

4. Salesmen should be guaranteed at least 90~ shi~ments ·On all 

confirmed orders· bQok~d in their territoties, except for 

conditions beyond the control of the manufacturers s1,1ch .as 

acts of God, strikes, et cetera . 

5. Sale~men should be g iven m1.p1mum drawings against commission 

of $35.00 a week to loca l city sa~esmen,· and .min'imum of 

$75.00 a week fo~ roa~ salesmen~ .· · ~ 

6. Salesmen s.bould receive · Gob . comm;issfon on all close outs, 

jobs' sam~le lines' et c,etera. 

7. That salesmen be given monthly itemized statements in 

deta.il of ·all merchandise ship"Jed in their respective 

territories. 

Commissions must be brought pack to former livable rates that 

have "Jrevailed from · the incention of the industry. The old commissions 

wi 11 not decrease tl1e manufac turers·1 profit, for they should be figured 

into the cost of the nroduct. As .a comnarablc example, we refer you to 

the je'lliTelry industry which is ac.knowledged .as a k~ndred ·line, the 

jewelry being bougl1t in many inst nce~ by the same buyer, either in 

the same denartment as handbags, or ~lqngs~de and considered an accessory 

and luxury equally as imnQrtant as handbags.. Comrnissions in the costume 

jewe lry business have never at any time been decrea sed and range from Bch 

to 15% plus, in spite of the f a ct t~ t their volume has decreased even 

to a much greater extent tlmn handbags. Granting the above request will 

not only aid and abet the manufacturer but will create a bigger business, 

more employment, and cultivate closer ties of relationship between 

salesmen and employer. 

The evils aforementioned have evolved out of the unfair nractices 

which have been indulged in by many manufacturers. This is evidenced 

by comparing the nresent commission rates as indicated by the annexed 

schedule of the 32 renresentative manufacturers enumerated therein, 

paying rates of commission comuarable to those commissions paid prior 

to 1929. A comnlete survey of the industry nroves tl~t the majority 

of the manufacturers in the industry have been guilty· of "chiseling" 

with commissions for price cutting and other unfair trade nractices. 

9811 
-551-

In vie of t he f a ct thA t t he manufActure r s will shortly begin 

to plan the ir ne''7 lines and inasmuch as the majority of the salesmen 

ould be leaving for the road on the first of J anuary, it is urgent 

that a conference be held immed iately between a repres entative 

com itte~ of t he code authori t ;y and a committee r enres en ting the 

salesmen of the IT.n. tional Handbag & Access ories Sa lesmen's Association, 

with Mr. Pierson the government representa tive on the code authority 

who ha counselled such mee ting. 

9811 
-552-

SCHEDULE "A" · .. .. . 

7.50 . 15.00 15.75 21.00 21.35 22.50 35.65 . -.54. ·od up jobs 

.. 

Firm 1 l 1')1. 1 

12~ ~ 10 .,, 775 . ...,? ~ 

II 2 7~ 7~ II 3 71_ 8 ~ II 4 7~ 10 10 

II 5 6 7-k- 7i 

II 6 7 7 

II 7 1 7-is 7f, 10 

II 8 ~ II 9 10 10 10 10 

II 10 5 

II 11 20 20 20 

II 12 7J-'.) 10 

II 13 5 5 7-f> 2~ II 14 5 5 71. Suec.3 ::l 

" 15 6 6 6 6 6 

11 16 7 

11 17 1 7?; 1 77; 

II 18 ~ 10 10 

II 19 5 6 6 

11 20 5 5 5 

II 21 5 

11 22 5 

II 23 7* 7-f> 7-f> 

11 24 5 CloseII 25 5 outs 

11 26 4~ 5 5! 2 

" 27 7~ ~ ~ 1 71. 7-f> 71 ~ 

II 28 5 5 5 73 10 IO 

II 29 5 71 10 

11 30 8~ 8.§- 8~ 

" 31 ~ It 32 6 7{ 

9811 
9811 

- 553-

E X H l ;Q l 1 F-1 

List of Or de rs i ssued 
332- 1 Admi n . 

::33 2 Admin. 

332- 3 Admi n . 

332- 4 Admi n . 

(Di v .) 

332- 5 Admin . 

(Di v . ) 

332- 6 Admi n. 

( Di v . ) 

332- 7 Admin . 

( Di v . ) 

332- 8 Admin. 

(Di v . ) 

332- 9 Admin . 

( Di v . ) 

332- 10 Admi n . 

(Di v.) 

332- 11 Admin. 

(Di v. ) 

332- 12 Aa.min . 

(Deputy ) 

032- 13 Admi n . 

332-14 Admi n . 

332- 15 .Admi n . 

(Di v . ) 

332- 16 Admin . 

(Di v . ) 

332- 17 Admi n . 

( Di v . ) 

332- 18 Admin . 

Office r 

- 554-

LAD I :S S 1 HAliDBAG I IIDU S ~?.Y 

3- 14- 34 

4- 27-34 

5-10- 34 

5- 25- 34 

5- 25- 34 

5- 25- 34 

App r oving code 

Ap"9oi n t i ng Fhi l i -o Lubline r mem.be r of Code 

Aut hori t y , ( n ominC'.ted by Lab or Ao.vi sorr Board) . 

pp oin ti cs 0 . ::. Pearson memoer, i7i thout v ote, 

of Code Aut hority 

Deny ing ex:em·)ti on to G. R. Go dfrey Co., 

Ga r dner, i,1a s s. 

Den:ring xe ~) n t o HuG.son Le athe:'"' Goods, 

I nc . , Ny acl: , lT . Y. 

Deny i ng exem:o t i on to Pa rag on Hov el t y Bag . Co . ; 

Uneecia Belt Co ., I nc. , }'e1.70 U l' g IIC' nd Ba{'; Co . , 

Inc., & Li cht & i.~a~J YJ., Inc ., all of i·Jen burgh , 

. y . 

5- 25- 3tl- :U eny ing exemp t i on t o St r a nct Leathe-r Goods Co ., 

Inc ., Ne'7 Yo rl-:: Cit'' · 

5- 28- 34 A::_)p r ovin.g It en i z Gd :Judf;e t a n d Eou i t a bl e Basi s 

of Con t r i buti on f or ? i s ca l YeP.r 3- 26- 34 to 

3- 25- 3') . 

5- 29- 31 Ro ti ce of Jo rt u~ it y t o Fil e Objections 

( Itt?rliz e. O. ud t and. ~ou le of Contri bution) 

6- 6- 34 I nt e :;:--}.,rb t a.t io:: r c : Art. V, Se c . 10 

6- 9- 34 Sta-ri n.cs Orc:.e r }:o . 3J2- 8 n 1i ch a·o1Jroved Buc_get 

o.nd Basi s of Co:1 t r i out ion . 

6- 15- 34 lJo ti ce of Opportunity to be HeaTC. ( L:odifi ca -

t i on Pro"Do sal) 

7- 3- 34 A-Jp r ovint; .A.m endrn cn t l.o . 1 

7-16- 34 App r ovi n.g: ev C:~. Budge t a nd Jasi s of Contributi on f or ne ri od of 3- 26- 34 to 3- 26- 35 

7- 27- 31 

9- 8- 34 

1')- 6- 34 

Te r mina t ing ex on c onf e rre d by Par. I II 

of Admini strat i ve Orc,er X- 36 . 

Acknon l edging a nc c: ~ 10 membe r s of 

code authority 

App rovi ng p l a n of organi ZP.t i on a nd ··') roce d.11re of 

Tracle Pra c t i ce. CoT"lpl c: i nts Comr1 itt e e , c onsisting 

of 4 memb e rs, and. officia J. l-r 8.u tho r iz i ng sai d 

Committe e to :9 roc eed 1.1 i t h a djustment of tre.de 

Dra ctice comp lai n ts. 

Appr ovi ng Contra ctors' Agreement submi tt e c. by 

Coo.e Authori t 3r 

332- 19 Division 12- 22- 34 

Adr.l ini strat or 

Appro;ring _ By - Lau s of Code Auth ority 

332- 20 Admin . 1- 2- 35 

Off ice r 

332- 21 Division 1- 16- 35 

Admi n istra t or 

332- 22 Deputy ~ 

Administra t or 

332- 23 Admin . 5- 6- 35 

Off ice r 

9811 

.A~po inting I si Qor La derma n Lab or eu sentative 

of Code Authori ; cmd ca 1. il1~ Orc3_e r No . 

Den:rinc exem:9tiol: t o i3oscu. , I n c . , Ma rion, Ohio . 

~, otice of Opportuni t :.? to b e He a r d (::3u d£et and 

BC'.si s of Co n t r i buti on, l:Iarch 26, 1935 t o March 

25 , 1936) 

..Ap>J ntin ._~ 3 I ndustry member s of Code Author ity 1 
332- 24 Admin . 

Officer 

332- 25 Asrt . to 

Admin . 

Office r 

811 

-555-

LADI3S 1 IDJillB.AG n .r:D1JST:::tY 

(Continued) 

5- 23- 35 .Anoroving Amen<iment l.;o . 2 (no ~r Art. VIII, Sec. 

1 6, 11Uniform iiethod of Handli ng 3.epairs ") 

5-24- 35 Approving Budgets and :aases of Contribution of 

Code Authority for period from l.1arch 26, 1935 

to June 16, 1935, e~c. June 17, 1935 to March 

?5, 1936 . 
9811 

-556-

~ X li l B l T G-1 

Notices of Hearings 
- 557-

J. eg is try No . 

236/1/01 

''otice of Henr v inr: : 1Jr). 36 7- ~ December 19, 1934 . 

A -ro rov ed Code 

~ro . 3~2 

LADI3S' F~NDBAG I -~US ~RY 

(Amendment Pro os ls) 

The abo1re Industry , as reu re l'; net ed bv the Code Autho :-ity, has subTTlitt ed r:t n annl icA.tion for amendments to the Code of Fair Cmnpe tition for - -

the Ladies' HfJnd.bRg Industry b-r runending such Code as hereinafter se t 

forth and as su_bT"li tted in the u-o licF~ti m for r>mendments and sFtio Code 

mav, pursuant to the He" ring h e r ein'"'fter r ef e rred_ to and/ or an;v subseouent 

henring, be amended. in the for!"'l no,-r subrr1i tt e d a nd/ or b e amendecl in couch 

fnrrn, su~stance, \'lording, ~nd-/o r scone by one or more othe r or similr>r 

orr:lendments, PUrsua nt to informntion or consid·.: r.8.tirm prOD"'rly b efore t he 

NationaJ Industri,'1 1 T.?.e covEr y -~ o!:>rc~ in such e::~ ng: RPcords or other 1"" ise , 

in Any re::~ son<'lble .. o?rticul 0 r ::-;ennane to the orLe;in,ql n rovisions of said 

-orouo s ed nl!l endrlent s submi ttr-'d .. 

The amendm en t~ -orouosed in such aD'1lic tion are ,qs s e t forth in 

Schedule "A", attached. h e r e to .:=mr h P:re'o7 mnr'e a 118rt h e reof. 

No·-r iCE I S tr"1-=!J'! "~ T thr t ., Dubl ic He"' rin.a on the ~e amendments '~' i 1 1 

·be C'lnducted br :Jenut-; :..dministr '"' tor H8 rr·r S. T;·err,r, beginning !'1t 10 : 00 

A. ;- ., on ·-ednesda:-:.•, JPnu~r-r 9, 19 7.5, in 3:<..oom 20 6 2- 66, DeDArtment of Comme rce uildin . - As hington, D. C •• a nd cant i nued until comn l e t ed . An 

OPPortllili t 'r to b e h e,., r il (eithe r in u r·rRnn nr by dulv n.uuoint ed reur esentative s e ither -Dv :::n:me~r;=mce 'lr o;r sendi''.g TTi.tt en or t e l ee:;r aphic stBtern cn t) mi 1.1 be g i •rr:- n to p e rsons or group s ,-,ho ca n shon ::~ sub s ton ti ~J. intere st as warke r s , employers, consu· _ers , or othe r,-i se in the eff e ct of 

any provision of the n ropo s ed R~o d~ents. 

Those vrishL.1g to b e hePrd :r1ust com-oly witn the f oJ.lo,·ring simule requirements. 

9811 

( 1) .A ,-Ti t.t en on t e l evraphic r equest for an opnortuni tv to b e 

hePrd r:1ust b e fil ed. be for e no on on Tu e sdny , J a nurtry 8 , 1935 , '~"' ith 

the DeDutv Adm ini s t r n tor, Ro'l":l 40~)5. DepF~rtTTJ.ent of Co-,•"le rc e ui lcling , 

~ashingto n, . C. 

( 2) Such r eou est shall st ~te the nRme of (;:) ' cnv p e rson s eelring to t est if·'.' in the he ring , ;:~n et (b ) the n<::r s ons or g r oups rrhom 

he r enr ese::n.t s . 

( 3' Such 

out arP;UJl'lent, a 

vrro rd.ing ; or ( 2 

n ordin,g . 

r euuest shall cont c:.in !=> s tAt €i ent 

u ropo sal: ( 1 for Rnv ch?nge in 

a ny objections to chAng es in the 

Re tti~R forth miththe d e finition or 

definitirm or 

( 4:) .\t the Dublic He'"'rin.rrs, all De rsons a r e ~P.:? rded as ~i tn esses , and shall ~r esent or ll v f~cts on" [-lno not .q,r e;ument. .--ritt en briefs or a r .e;uments TTJ.RY be fil ed but orP] u resenta tions .... ill b e 
-558-

c~nf ed to ~c tual stRtements 'only. 

(5 ) In the d.is cre tion of the De·outy Administrato r in chP r c e 

of the He l=l ring , p e r sons 111ho he.ve not comulied with the r equirments 

of pa anh ( 1 ) , above , mPv b e :oerrJi t ted at any t i "'le n rior to the 

close of the He~ ring to file n ritten st~tem nts containing nrouosa1s 

for, eliminntions f rom, aTJlendment~ to, or <'dditions to the defi'Tlition or wo r o i ng su p-!)Orcled by u e rt il7-ent inforMPtion or are;UJ'Tlent. 

Such ritt n st e~e nts mu s t b e conden sed PS much ~s ossibl . 

Public He.., rings are sol elv fo r the >urp ose of obtaini n.o: in the most 

direct manner the f a cts us eful to the De·outy 1\.dm inist r ator, o n0 P r gu.-

ments nill be heRrd or c~nsi de ed at this ti~e. u euresentRtion of int e r e sted pa rti es by attorneys or sueci2lists is ue r!'lissibl.e , but is not 

to b e rega rded ns· n e cess:-:l r y . I11dustry, "'"'o r kers , Rnd the cnnsu.nint?.: uub,_ic 

'W i 1J. b e r ep r esent ed by speciP.J ;:~d vis ers em·oloyed OY the Ci;O,TE?rn.rent. 

. .. 

1'Ta.tional Ind~st:rial RecovPry .3 oard , 

· Barry S: :3 e rry, · '· 

~enuty AdP'l inistrator. 

'iy : ~ ~ l\. . HarriMan, 

Ach inistrative Offic e r. 

( :r .B.: 

9811 

'To Code Authorities and rr:' r ··d:e and Inc1 u 3tria)_ AssociB.t ions ~nd 

_li.f-:;.enci es : 

The above contains no tice of ·0ossiol e ac tion in mhich y0ur mem-

·be r s or othe r nr rti es 1rnown y ou you r1av . ·o·e ·vi tall:v int e re stEd . 

You Rre ur;ed 'to eJ e rci'se ver . r easonab l e effort to CPUSe the 

subject matter to b e ca l led to the ir· att ention.) 

' I . I. , 
-559-

SCHEDULE II A" 

PROPOSED AM:SNm,;E TS : =:i:O THE LAD IES' HANDBAG CODE 

Art1cle II, Section 1, shall be amended by inserting the wo rds 

11 shopp ing -bags 11 , 11 bRti1 ing bag s", 11 hRnci.kerch ief bags", 11 kiddy bags", 

"vanity boxes 11 , 11 cosme tic bags", "utility bags", 11 knitting bags", in 

the first sentence after the word "purses'' so that Section 1 of Article 

II will read a s follows: 

"The term 'industry' as used herein includes the manufCJcture of 

Ladies', misses', and chilnren's handbags, pocketbooks and purses, shopping bags, bathing bags, handkercnief bags, kiddy bags, VCJnity bo xes, 

cosmetic bRgs, utility b ags, knitting bags, manufactured of any material 

.of any kind or nature. T'ne term industr~ 1 sha ll not include, however, 

the manufActure of handbags, pocketbooks, -purses and me·sh .bags manufe1ctured in whole of me tal." 

Insert a nevr section to be known as Sec tion 17 of Article VIII, to 

read as follows: 

"Design piracy is hereby declared to be an unfair method of competition. T'ne term 'design ' as used herein, signifies designs artistic 

or ornamental ano not functional or mechanical. 1·To member of the industry shall imitate or copy, or cause to be imitated or cop ied, any 

design original in its application to any product 0f the industry, without the consent of the owner thereof, if: 

11 (a) A d.ravrring, photograph or model of sa id design has been registered with a disinterested and impe1rtial agenc;.r to be designated by the 

Code Authority with the approva l of t he Administrntor. In registering 

such design, the registrant sha ll indicate clearly the particular or 

particulars in wh ich such design is orig inal in its app lication to any 

product of the ind.ustr;,r, sha ll, in addition, submit a swo rn statement 

in which he certifies that to the best of h is knowledge a nd belief, such 

design is in fact original as afores a id, and shall specify the date of 

conception of such design. Such disinterested a.nd impartial agency shall 

accept any design submitted for registration as aforesaid, and shall 

issue a certificate of registration to t he registrant. 

11 (b) Said design or s a i d nrticl e to wh ich s a id design is applied 

or in which said design is embodied bears the ma rk 'Registered 1~A 

design' or 1Reg. NRA Code Number', ;md the date of registration. 

"(c) Frovided, that tne prohibition herein against p iracy of any 

design sha ll expire six months from the dat e of registration thereof. 

"(d) Any plan for regist ering of de si gns nnd m~~ing this Section 

effective shall have t he approval of the Administra tion. 

11 (e) An Arbitration Board shall be set up to settle differences 

occasioned by conflicts in design or priority of rights under registered 

designs. After all possible effo rt has been exerted to rumic ably settle 

9811 
-560-

such differences, the Arbitration Board shall submit to the National 

Industrial Recovery Board in writing a statement setting forth the facts 

pertaining thereto~ with recommendations as to the desired action to 

settle such differences. 

"(f) The decision of the National Industrial Recovery Board sh~ll 

be final and binding upon all interested parties. 

"(g) Nothing contained in this Article VIII shall be construed to 

limit the protection afforded to designers or manufacturers in respect 

of designs under existing law." 

Insert a trade practice rule which shall be known as Section 16 of 

Article VIII, reading RS follows: 

"No member shall repair any used bag unless a m1n1mum chRrge of 25~ 

per bag is made to cover the cost of materials and the labor on such 

repair. No member of the industry shall pay for apy of the forwarding 

charges on such repair." 

9811 
-561-

NATIONAL :aECOifE.RY A:UI.IIlU STRATI ON 

·Re"'istry Eo. 23'6/1/01. .FebrUary?, 1935 • 

.Approv~~ Oode Eo . 332 Notice of Hearing: Ho. 367-F. 

LADIES' H./IJJD~4..G llJDUSTRY (Al;nendnent Proposals) 

The aoove Industry, as r ep resented by the Code Au thority, has submit ted ar.. ap licat~on for anendmen ts to the . Code o:f. Fai-r · Go111peti tion for 

the Lad.ies t Handbag Industry b;r amending such Code as 1ereinaftcr ·set 

fol~th ancl_ as submit t ed in the application for amendt1en ts and said Code 

may, pursuant to the ·Hearil).g hereinaft e r referr.ed to. ,fllvi/or any subsequent hearing, be amended in the forr.1 no11 · sub.mi tted ~YJ.d/ or. be amended in 

such form, substance·, 1.7ording,, a.YJ.d/'or scope by .one .or more Dther or similar amenfuuents, puTsuant to informa tion or consideration prope rly before 

the No.tional Ind.ustrial Recove ry. Board in such Hearing Records or otherui se' iri e.ny reasonable particulp,r ger::nane to the orig,ir:.al provisions of 

said p rop osed .ainendmen t a's. submit ted. 

The amendr!re-nts )Jrdl)O sed · in .. _sucri' 'aplJricafi'or(.are '~ s ... ser··forth in 

Schedule ".A,II atta~hed hereto anct hereb;:,r rnade .:.a . p art _hereof. 

Additional copi~s of such a1;1endne '1t ~ ~re .. Ql.vaii~bl e .. at the offices 

of the National Recovery AC:lrr!inistration., Room ;?:Pl6., .. D~~J artr.-~ent of Commerce 

Building, Washingt9n, D • . c. · :, .. . : 

1TOTICE li HE.!iEBY GIVEN that a Public Hearing on t h ese amendments will 

be conducted by De}JUt;}r Aclministrator Walter i.Iangum, beg inning at 10:00 

A. l.I., on Tbursday, ~,ebil.lai"Jr .28, 19"5, in the Sun Parloi, of the 1Jashington 

Hotel, 1Jashington, D. C. , and qDn tinued until cor1pleted. An opportunity 

to be heard. (eithe r in y erson or by fuly appointed rep resento.tives either 

by appearance or qy . sending :rrri tten or telegFaphic· s.tateme'rrt)" Tiill be 

given to p ersons or. g roups who can shou a substru1tial interest as uorkers, 

employers, consume rs, or o·the·r nise in the ef:ect cf -any provb3ion of the 

propos·ed amend.ruents·. ' · · · .. ,.,. 

Those 1.: ishing to be hea rd must comp ly· rri th the i'ollo':T:bng Simpl·e requirements. 

(1) A uri tten or telegraphic req ~..test for an· OP1JOJ:>bm.i ty · to be heard 

must be filed before noon on Wednesday, February 27, 1935, ,-Ji th the 

Deputy Administra tor, Room 4035, De ~rt8ent of Cornne rce Building, 

Washington, D. C. . . 

(2) Such request shall state t h e name of (a) any person seeking to 

testify in the hearing, a~d (b) the pe rso~s or groups rrhom he represents. 

(3) Such r~quest shall contain a st-atement -setting forth ui thout 

argument , a proposal·: (1) for any chanbe in the defini tiorr. or. uordin~; 

or (2.) any objections to changes in tho definition or -v.rording. 

(4) At t.he Public Hearing, all p ers ons are l~eg ::t rded as rritnesses, 

and ~h~l p resent orally facts only ru1d not a rgument. Uritten briefs or 

arguments ~ay be filed but oral presentations uill be confined to ' factual 

statements only. 

9811 
... -562-

(5) In the d~~cr eti~~ .. oi '·t1;e .. DeYJuty Adminif'trator in charge of the 

Hearing, persons v:rho h ave not compl ied r·i th the rea_uirenents of para~raph 

(1), above, may be ermitt~d .. at any time pr~or to the close of the Hearing 

to file written state"lents . •ontainirtg pro:ooso.ls for,. eliminatirms fr'om, 

amendments to, or additions. to. th~ Cl.efini tion or wording. supported by 

pertinent infor!Tla tion or argument. · Such written sta.terrients must be condensed as much as pos.si bl e . · .. 

Public Hea.ring s a·re solely for the purnose of obtaining in the most 

direct manne r the facts us eful to the Deputy Administrator~ · and no arguments will be heard or ?onsidered at this time. Representation of interest 

ed parties by attorne"S or snecialists is nermissible,. but is not : to be 

.regarded as necessary. Industr r, l'or1:-:e rs, and the co~s1bing public will 

b e represented by special advisers e!Tl~l6yed by the _Government. 

National Indust'ria.l Recovery · Board. 

7.'al ter Mangurn, 

Deputy Administrator 

B Tr'. 'A H . . . y: •.. • • _arrlman, 

'Administrative Officer. 

(N.B.: .TQ Code Authorities and Trade and · I ndu.stria1 Associations and 

AP,enci es: 

The ·above contains no'tice of n'ossible acti .. on in hich your . 

. members or ~ti1~r parti'es kno~ to you Ir]~Y b~ vi:ta'lly interested. 

You are urged to ~xercise every reaso11abl' ~ effort 't·o ·cause the 

subject matter to be called to their_ atte tion ) 

· SCHEDULE 11A 11 • 

PROPOSED .AMENDL!ENT& ... CODE OF. F'AIR COHPETITION FOR ~HE · 

. ·. . LADIEs ' H.AliDBAG I NDUSTR:Y . I 

Arti'cl~ III, Section 2 shall be amended to read as follo"'s: 

"No person ~mployed in shipping, clerical, oT off ice 'VoTk, unless he 

is employed in a managerial or executive capacity and earns not less than 

thirty-five dollars ($35.f'O) per week , shall be permitted to ~ork in ex-

.. cess of forty (4~) hours per week averaged over any one month period; uro- I 

vided, however, that a partner, officer, director, or stockholder of a 

'member of the industry' engag ed. in p roductive labor, shall be . consic.ered e 

employee for the purposes of this ·code, and shall be subject to the labor 

provision~:~ thereof." 

Secti0ns 2 and 6 of Articl e IV shall be deleted. -

Article- VI, Section 8 (c) shall b~ amended to rea d as follows: 

11Each m~mber of the Industry shall keeu accurate and complete records 

of his, their or its transacti ons in the Industry in respect to wage s, hoUl 

of labor, conditions of em~loY"lent, number of emnlovees and other matt~rs 

necessary for the effectuation of this Code, a nd Title I of the Jational I1 

dus trial R~covery Act. "Each member shall furnish accurate reports based U!: 

such records concerning such ma tters ,.,hen required by the Code Authority Ol 

the National Industrial R~covery 3oard. If the Code Authority or the Nati c.i 

Industrial Recovery Board shall determine that doubt exists as to the accw.· 

9811 
- 5 63-

of any such r enort, so much of the uertinent books, r e cords and pauers 

of such me::Jber.:" ae may be r equired for the verification of such renort 

may be exarr~ined by an agency agr e ed uuon bet'~"een the Code Authority and 

such meMber, or in the abs en ce of an Rg ee~ ent, by an agency anuointed 

by the Code Authority and. a:u 1Jroved by the 17atioJ?al Inclustrial Recovery 

Boa rd. 

11 If a r:ember of the Industry shall f n il t~ furnish a ccurat e reports 

concerning any of the foregoing ma tters 'l'l'hen required by the Code Authority 

or the NationA.l Industrial Reco rery Boa rd, such merr~ber shall ma1-:e available 

to an a g ency appointed by the Code Authority · -rfi th the anuroval:_ of the 

National Industrial Recovery :Soard so · TTluch of the nerti.nent book s, records 

and papers of such member a,s may be required by the ·Code Authority i th 

respect to wages, hours of labor, conditions of employi]1ent, ·number of employees and other "!latters necessary for the effectuation of this CoQ.e. 

11 In no case shall the ~J. cts disclosed by such examination be made 

a~ailable in any form to any competi to.r y•rhether on the Code Authority Board 

or otherwise, or be g iven any othe~ publication except so much thereof as 

may be required for the p~oper administration or enforcement of all the pro- '. visions of this Code." 

Add a ne\"' s e ction to Article: vr to· be knoi)ITn as Section 9, reading as 

follows: 

· "The Labor Me~b~ r appointed by the National Industrial Recovery Board, 

and nominated by the NRA t e.bor Advisory :Board, s!Ial~ ha:ve the right to vote 

on all questions affecting lC~ bor, compliance and enforcement, but shall not 

have the · right to vote on trade practice· provisions or on the employ!11ent or 

discharge of any off ic er, ·d.irector, attorney, or othe r agency of the Code 

Authority." 

Article VIIi, Section 11 shall be amepded to read as folloVI"s: 

"No member of the industry sball gr ant cash discounts in excess of 

3/10 E.O. M. ~xcepting on goods sold. up·. )to and including $27.00 a g ross, 

no member of the industr~ s:'lall grant cash di s~ounts in excess of 2/10 

E. o: •. M. 

"Anticipation may be allowed at the rate of 6% -uer annum. No member 

of the Industry shall grant quantity a nd/ or volume d-i'scotint15 of any nature. 11 

_ Add ~ ne'IV Section to Articl e VIII to ·be known as se-ction 16, reading 

as follows: 

"FREE DEALS--CO!viB NAT ~OH DEALS--No member of the Indus try shall directl; 

or indirectly give \'!hat a:-e knovrn ·as I fr ee d ea!l;S. ' _ or 1 f _r ee merchandise 1 

or 1 combination deals: whereby a joint total -p rice is chc=l.rged· for handbag 

along 'i'1' i th other merchandise. All bills ·and invoic~s in ~r ~h ha ndbags are 

on.e of the i terns. sha1.1 set forth sepa rately and definitely the charge of 

the handbag alone." 

9811 
-564-

lL~r:::IO:i.T.'\.1 RECOVERY .AIJi 1Il.JI S~:> : TIO~J 

Registry No • . 236/l/01. , 5399-A 

Approved Code No. 332. 

Notice of Opportunity to File Obj ections 

Ao.: lini s t r P..t i ve Orcl.e r IJo. 3-52-9. 

Hay 29, · 1934. 

LADIES 1 HAl® BAG HT:0UST:i?.Y 

Tho Code Autl-.ori ty for the Ladies' Handl>c:-.g I n cLu.stry ·has made appli .. 

c ntion to the Adnin t:~ ~. tor for approval of its Itel:ized Budg et and 

Equi t eble .Basis of Co11tri J1.J.ti on for the expense of c::.dnini stering the 

Code for the fisce.l -e r rch 26, 193lt. to f1ar ch 26, 1935· 

The Itemi z ed :;Ju0.c;et 2.,nd Equitable ·Basis of Co;,1tribution was approv .. 

ed by Administra tive OrC.er Eo. 332-S 0·f Niay 28, 193l.~. The Order of 

app rova l read in pGrt ~s follows: 

"This e1~ ~12 ll become e ffective fot1.rteen (14) days 

a fter the date hereof unless good cause to the contn1.r y be 

shown and object-ions filed ·with · me by th2.t t iT.1e o..nCI. further 

Orders are issued. thereon by me." 

The Order of E'..:;,i ') ro vo..l and. ·the It eJllized· Buclcet and Eo,ui table Basis 

of Contribution ·are c:.s set forth in Schedule ·11A", : E' tt .~ ched her.eto and 

hereby .made a part hereof • . 

NOTICE I.§. HTIP..E~JY GiiGN t hat .any objections to said Itemized · Budget 

and Equitable Basis of Co:1tribution must be filed rri th Deputy Administrator Earl Dean Houc:..l' -., Room 4215, Department of ComNe rce Building, 

Washington, D.C., p riol' to I;onday, June ·11, 1934 • . Any pe rson filing 

objections rrmst ste.te ~l is i1ai'le, the person or group n~lO 'l he represents, 

and the basis of his o"J j ecti ons~ 

This op})ort ni t~r :Zor filing objections is for the purpose of obtai!}o 

ing in the most eli rect ;_:c:.nne r facts useful to tlle Ac1j·Jini stra t or. .Objections filed will be c;iven c.:u e consiciera tion, c..nC'. the Ach.1inistrator, after 

consulting with such of l1i s advisors as he 'nay C.eea appropri a te, may re- 

vise s a id Itemized. Th..lc\.::;et and Equit able Basis of Contribution on the 

b a sis of object ions f i lec1 ·oursuant to this Uoti ce. 

Earl Dean Howard, 

Deputy Administr2.tor. 

Sol A. Rosenblatt, 

:Qivision AdministrC".tor. 

(N .B.: To Co O..e Aut h ori t i o s a nd Tra cle and Incbistrinl Associ a tions and 

9811 

Agencies: 

The above cont c:..L1s ~1ot ice of p ossible actioi1 in uhich y our members 

or other part i es :~n '.":'n to 'You may ·be vite~l int cr ested. You are 

ure ed to exercise every reasonable effort to cause the subject 

matter to be ccllec. t o their a ttention.) 
- 565-

SCHEDULE A 

o:.:mER No. ) 32- 8 

COJ~ · O:ii' FAr i. COMPETITIOl7 

20P. THE 

LADI ES' Hill~ G T~I 

Approval of Itemi zed Ctc et and Equitable ~a is of Contribu tion for 

Fis cal Year r.iarch 26, 1934 to March 26, 1935 . 

An applica tion :12.vinc; be en duly ma de by the Co C:.e Au t hority of the 

Ladies' Handbag I nc.ustrJ f or approva l of its ou clc;e t f or , and of the basis 

of contribution b;y- :Jer:bers of the Industry to, tl~e e:(_o ense s of a dministering the Code for t he f iscal year I.:arch 26 , 1934 t o i!2.rch 26 , 1935, and. opportunity to f ile ob jections being hereby mf r~ _ed all r.lembers of 

the Industry , and such "':JD.dget appea ring to be reasonoJ)le and necessary 

to support the ut ~1 zec. activities of the Co cce Au.tllori t y , and such 

ba sis of contributi on O..l) ~-:Je2 ring to be e quit ab:!.. e , 

NOll, THEREFORE , ::_Jl,_rsuant to the authority vested. i n ;.1e, it is hereby 

orG..ered that , sub ject to 2..ny p ertinent rul es a nd regtllations issued by 

the Administra tor, 

(a) Said budc e t, ti1.e orig inal of rrh ich, 2..s 2.p~) ro ed, is on fil e 

with the Nationa l 3.e c ovel'Y Administra tion, b e , o.nC.. it is he r eby approved. 

(b) The follo':7i nG ·oasis of contribution by ner.1be r s of the Industry, 

authorize d by .Article VI , Se ction 7(f) of such Co(.e ·oe one third (1/3) 

of one percent ( ~~ ) of c:ollar s al e s vol ume, be , o.nCl. it is hereby approved. 

This Order she~l b e cor.1e effective f ourt een ( 14) d.o.~r s a fter the date 

he reof unle s s goo0. c2..use to t h e contra r y is sho·;;n a n C. ob jections filed 

with rt1 e by that tir.1e C'.ncl further orde rs are i ssue C:. t Le r eon by me. 

HUG !-I S. J OIIlJSON 

Administra tor fo r I ncJ.ustrial Recovery 

( Si r·ned) :By Sol . A. Ro senbl 2..tt 

Division Ad.r:i ni str ?.tor 

~J ro val Recomr.1ended: by Uillian P . Farnsworth 

(Signed) Earl Deon Zo 7nrd 

Deputy .Ac~ :i:").i s ·c rat or 

May 28 , 1934. 

CO ~:C ~~UT~: ITY LADIES 1 HANDBAG UDUST:rlY 

:OASIS OF ASSESS: :Cl?r ::OR 1'1 SCAL YEAR HA ... Ti.CH 26, 1934 TO i..~ CH 26, 1935 . 

The :Basis of 2.sse ss: :ent for the authori zer:;. e::;:-_pen so s of the Code 

9811 
-566-

Authority in this In ustr ' shall be one-third (1/3) of one (1) per cent 

of the dollar s ales voh1: . ·:e . The estimated total G<, rl r dollar sales 

volume in this ust~ · is $50,000,000 .00. Q;.1e-t:1i:.: C.. (l/3) of one (1) 

per cent of this :m.,_nt is 0166,666.00. It '.-:ill be "1 ot ed that this 

budg e t calls for 2. tot;:,l e:::p end..iture of $140 , 0CO.OO ~or the fi rst fisc n.l 

year. At tent ion is cclle t to the fact t hat the buo.r-;et is estimated on a 

basis of ninety ( SO) ~)G l' cent compliance , '.7heJ.'e2.s t 11e C",ss e ssments n re 

fi gured on a basis of one :mndred ( 100) per cerlt co: :~ li£1 nce. further 

leeu ay is l eft to ::;o.arc. c.::;ainst p ossible inaccu1·c,ci c s in the estimated 

sales volume, etc . s:·w·l1.lG- the actual i ncome of t h e Code Autilority on 

the above b a sis :cee . Jchc authorized expenc-:..i t1.:_:tes, '- ~r and all such 

excess funds 1.-rill be rel\1.nc1ed proportionately to the ::-.leubers of the 

Industry a t the en(. o; e2.ch month. 

9811 
CODE AUTHORITY LADI:::;st li..1.liD:DAG HillUSTRY 

B®G:CT ]OR FISCAL YEAR l'.llill.CH 26 , 93L~ TO : :ARCH 26, 1935 

STII~TED GROSS I NCOI:IE ( ASSJ:;SS::8_T_!: __ l/} ~ TOS:AL SALES 

VOLU<LE ) 

COST OF h~L SALES 

Class A 

Class B 

. .. 25,000 , 000 ~/o e.ls@. $ .42 .pe.r. h . 

. 25 , 000 , 000 L~bels ¢ $ . 5.5 .pe r '~ . 

Class c 

Class D 

Class E 

Class F 

. 

• • 

. . 

. 

. 

. . 8 ,000,000 L0"oels. ¢. $.. 5.5 .pe r.; . 

7,000 ,000 ~o.,be ls @, 25. per i.I •. 

1,000 , 000 L:-.bels.@ $3 •. 00. p er ~I •. 

500 ,·000 .Lo;oels C0 $.4 . 00 per ~ : •. 

Total Cost of Laoe l66, 500 ,·000 . 

Sales 

OVER.lffiAD EXP:SNSES 

Pl a.l'li'li n.g and. Prog r ess Division: 

Director at ~200 00 pe~ ecl~ . . . . Co~ lience Division : 

10 ,. 400 . 00 

1, 560 .00 

Director at $200 . 00 per \7cck ••• 

Secretary et$ 30 . 00 per ':Jeel;: • • ~ 

Investiga t ors-6 a t $40 . 00 :9er ' .. 'eek w 

Supervisor at $50 .00 ·per neel:: 

• 1 2 ,480 . 00 

2, 600 .00 

1,300 .00 

1,300.00 

Retail Shopper at $25 . 00 per neek 

Clerk at $25 e00 per neek ••••••• 

Traveling Expenses . . • • . 

Totel Com:9liPnce Jivision ••. 

Label ~ivision Expenses: 

Record Clerk at $25 •. 00 per neek 

Label Vt'.U~ t Clerk at $18 . 00 ~) el' rreek . 

Packing Later ials • • • • • • • • 

Total Label Division E~pens s •••• 

For~arded . • • . • . . • . • 

10 , 000 . 00 

1,300 .00 

940 . 00 

500.00 

Total Cost of Label S0les - Forwar ded • . 

Total Gross Incone - Forwar ded ••• 

100% 

Cor.mliance 

1 66 , 666 . 

10,500. 

13,750-

4 , 400 . 

5 , 750 . 

3,000 . 

2 2000 . 

L~2 , l+OO . 

10,400 

. ' 

39 , 640 

2 ,740 

52 ,780 . 

90~ 

Comp1i ence 

149 ,999 . 

9 , 450 . 

12,375-

3 , 960 • 

7, 575 · 

2 , 700 • 

1, 300 . 

38 ,160 . 

38 ,160 

. . . . . . . . 

lL~Cl GOO .J J .JJ./ 

.... 149 , 999 · 

I 

CJl 

(j) 

-.,] 

I 
CODE AUTHORITY LADI:CSI :Ll.AlELJAG HEJUSTRY 

FI SC.AL YEAR i !lL1CH 26 

continued 

Br ought Forwa rd - TotQl Gross Income • • . . • 

Brought Forwe.rcl .... Tot['.l Cost of Le.bel Sales 

OVLRHEAD bNSES - COr~ tD • • • ••• 

Ad.rninistra tive and Ge ne r al ~~c-_9 ses : 

. . . . . . . 

Executive Secretary and Offi ce ~;Qn ge r •••• 5,000. 

Bookkeeper at $30 . 00 per 11eel: • • • ·• • • • • l , 560 

Stenographers - l at $25.00 Ol~ '.1eek,· l a t 

$20 . 00 per ueek •• ••• • • • 2,340. 

Switchboard Operator and Steno ~pher , l at 

$18 . roper . -;eel:. • 

Tempora ry Clerks - 2 for 2 ont 1s • . • • . • 

940 . 

350. Rent , Light and Hea t • • •••••• 

St tion ~J and Printing ••• • •• 

Posta.g e . . . . . . ·. . . • . . • . 

Advertising . . • . . . • • • • 

Telephone and Tel egr aph • • • • • . 

Auditing .Fees •• : . • ••••• 

Code System Installation • • • 

Uniform Cost Sy st em nst ~l tio n •• 

Insurance • • • • • • • • . 

Sub s cr i p tions • • . . • • • • . • . 

Conferences • • • • • • • • • . 

Purchase of Furniture and i:~tures. 

3,000. 

• 2,500 . 

. 2,500. 

• 2,000 . 

.• 1 , 500. 

900 . 

. . l ' ooo. 

500. 

100. 

50. 

. . l' ooo. . . . . . l' 500 . General Expense ••••• • ••••.•... 2,50C . 

Contributions to Trade Associ tio s for Code 

Authority '1."/Qrk • . • • . • • • • • . 15 , 000 . 

Contingency Fund. . • • • • • • • • . 5, 000 . 

TotCll Adrl!inistrc-.tive and G-enero.l Expenses 

Total Overhead Expens e s • • • • . • • . . 

Cost cf Labels and Total Overhead Expenses •• 

Excess of Income over E: enses • • • • • • • 

' 1934 TO 1iJUlCH 26, 1935 

. . . . . . . . . . . . 

. . . . . . 38, 160. 

. • · 52,780 . 

49 , 240 . 

. . . . . 102 , 020 

. . . . . . . . . . . . . . . . . . . . . . . . . 

149 , 999 . 

140 , 180 . 

C) , 819 . 

[ 

01 

')) 

00 

I 
EAHi ni T 11A11 

... '\LLOCATION OF E~~:SFS:CS ::JET' .. ~EIJ DIVISI ON OF 

PL_\lTIITNG AND PROGRESS JIJ-ill :!)IVI SI011 OF COi IPLI ANCE 

Two Directors -

One Secretary -

Six I nvestigator s -

One Super visor -

One Retail Shopper -

One Clerk -

Traveling .Expenses -

Label .Ltecord Clerk -

Label Vault Clerk -

Pacl:ing l :a~ erial s -

*Bookkeeper -

Cost of Lc>bels -

One E=::ecutive Secretary -

**Eookkee-oer -

Two Steno r~phers -

One Switchooard OperatorTwo Tempor2.ry Clerks -

Stationery, Printing -

Rent , Lights and Heat -

Postage -

Advertising -

Tel ephone and Telegraph 

Auditing Fees -

Code s-ystem Instal lation -

Uniform Sost SYsteM Install~ 

ti0!1 -

I nsurance -

Subscriptions -

$20 , 800 . 00 

1 , 560 .00 

12 , 480 . 00 

2, 600 . 00 

1 , 300 . 00 

1 ,300 . 00 

10,000.00 

1 , 300. 00 

940 . 00 

500 . 00 

1 , 040 . 00 

38 ,160 . 00 

5, 000 . 00 

520 . 00 

2, 340 . 00 

940 . 00 

350. 00 

2,500. 00 

3 , 000 . 00 

2, 500 . 00 

2,000. 00 

1 , 500 . 00 

900 . 00 

1 , 000.00 

500 . 00 

100 . 00 

1)0 . 00 

$115 , 180 . 00 

DIVISIOlJ OF PLANNING A1TD 

PROG:P.ESS 

¢10 , 400 . 00 

780 . 00 

4, 160 . 00 

3 , 300 . 00 

2,500 . 00 

260 . 00 

1,040. 00 

4'{0 . 00 

175 . 00 

1 , 500 . 00 

1 , 500 . 00 

1 , 250 . 00 

2, 000 . 00 

750 . 00 

1, 000 . 00 

500 . 00 

50 . 00 

50 . 00 

:; 31 , 6S5 . 00 

DIVI SI OH OF COl PLIANCE 

$10, 400 . 00 

780 . 00 

8 ,320 . 00 

2, 600 . 00 

1 , 300 . 00 

1 , 300. 00 

? , 700 . 00 

1 , 300 . 00 

940 . 00 

500 . 00 

1 , 040 . 00 

}S, 1SO. OO 

2,500 . 00 

260 . 00 

1 , 300 . 00 

470 . 00 

175 . 00 

1 , 000 . 00 

1 , 500 . 00 

1 , 250 . 00 

750.00 

soo.oo 

50 . 00 

$94,295 . 00 

I 

Ul 

Q) 

(.!) 

I 
....Jnlc=mce Brought :?or "rard 

Conferences -

::tu·ni ture and J'ix ture s -

Cener al ~xpenses -

~ontribut ions to Trade 

~ssoci2tions for Code 

A-;J.t11ori r ! ork -

Conting e11 cy Fund -

TOT~~S : 

¢115,180.00 

1,000 . 00 

1, 500.00 

2, 500 . 00 

15, 000 . 00 

t) , OOO . OO 

t:l 40 , 1 c-;o. oo 

:) II.'I IO:. ~ 01' PLX rJilJ(;~ -~ :D 

F l OGTISS 

~)3 , 685 . bO 

1 , 000 .00 

750 .'00 

1 , 2)0 . 00 

7, 500 . 00 

2 ,500.00 

:;;44 ' 685 . 00 

* 1\7o-thi rds of oool:lcec·oer 1 s tiE1e alloc2,.t Gd to e:;:·;enses of Label Division . 

**Onl y one- thircl of 0ool::keeper 1 s time a lloc:'t e ci.. to ·:rorl::: of Pl cmning c;nd 

Prog ress Di vi siOl1 ;-jl l. Co!-1pliance Ji vi sian. 

oh 2or1 00 r ....I' ' - J- • 

750 .{)0 

1 ,.250 . 00 

7,500 . 00 

2,"500 . 00 

•',·O .-) LLo r)- 00 ·..; _) ' . ,..,. . 

1 

01 

-..J 

0 

I 
-571-

ETHI 3I T 11A11 

It is ~r tre ely 0.if:ficul t , not to say i mpossi oJ.e , to a llocate the 

expenses of 1e Co c'.e f__l ~wri t y a s to t he manclc.t m.'--r -oro visions of t he - ~ u -

Code . So far a s thnt is concer n e d , a ll the provisi ons of t he Co de a re 

mandatory . Pursuc.nt , ·l1o.:ever, to reque sts an 2.tte11:9t ;:rill b e made in a 

genera l manner to i nC.ic.:-.te the alloca tion of the ::~o enses of the administra tion a s to t he ~i:feren t p ortions of the Cote . 

As will be not eCl. I r on Exhibit "A" the to t2~ e:c·J ense s alloca t e d to 

the Compliance Division o.re $95 , 459.00. Rou ll ~; , o; e .... hal f of t his Hill 

be use d in the enf o:rce:·!e!lt of t he l abor p rovisi on $ of tl1e Code and onehalf in the enforce· .8~1t of the trade p r 8.c ti ce ~J rov i si ons. At t en t i on i s 

called to the f e.ct t:1c.t the ex-pen se s i nvolved i:1 the o,cl.J.inistr:-ttion of 

Article VI I - NRA L2.bels .... a r e char pe d to Co•:plio.rice Division for t h e - . primary function of the l o.oe l is to a ssist in co::~ li c:.nce . Th e· expenses 

charg ed .to the Pl2J.1l1i 11s 2.llC1 Prog r e ss Divisi on Di ll oe a llocated to 

Article VI - Admi nistr - t i on. 

9811 
-572-

NAI'IOFAL ?.=c;COVEEY AD· ;I F" ISTRATI ON 

Registry Fo u 236/l / 01 

Approved Core No . 332. 

otice of Opportunity to be Heard 

Administrotive Order No. 332-12 June 15, 1934 

LA.IH ES HANDBAG UJXJS'r.RY. 

t odification Froposp1 Expense of Code Ac.ministration; r~evise Code 

.Authority Budget and :BR.sis of Contribution; 

.c.;xception to Ex empt ion CoYltained in A0ministrative Order X-36. 

The Ladies HancbElg Industry, throueh the Code Authority , has submitted an Ppplicetion for modifica tion of the Code of Fair Co 1~ etition 

i or suc_h Industry by N1ending such Code PS herein,!'jfter set forth c>nd 

Rs submitted in the anpli cetion for .:tocii:!.' icr ti on. 

The Code Authority h a s c- l s o :nade ap _91icPtion for tne a-oproval of 

its ~~e vis ed :Judget .:me B?si s of Co n tri b'..l.t i on by rnembers of the Industry 

to the expense of ac ministering the Code f or the ne r1od from ~rch ~o, 

1934 t o i<.=~ rch 26 , 1935 , as revisec~ ~:rursuP nt to obj e cti ons receiveci by 

the .A.c'ministrc-.tor. I'he: tot e l <-''llount of na id .ttevised Blld.ge t is 

~:J 40 L)O . ThE: ~E. vis ed B.!:isis or Co ntribution i s o~1e -t ird. of one 

percent of t he do llPr sr 1 es volume. 

The Code Authority hes etlso ;n<? c'e FpT' lic ti n for .:m Exception to 

the Exempt ion c ont;, ined. in Sect1on III of Ac.' u i'!:!.i"'tre tive Orc'er X-36 , 

d.a ted :-.ey Z6 , 1 ':1 ~4 , ,-'tlich provic-e s FJ s fallows: 

'' Pend ing d.e t e rrninR_tions ·by NEA v·ith r es·pe ct to spe cific Codes 

UDOn c·,use shov.rn by a Coc e Au tno ri t v or o t he r,··i se, eve ry :ne nber of 

a t rC'6 J or industry is herebv exe~c ted fron Elny oblige tion to 

contri:mte to the expense s of Fd'ninistre ti on of anv Code or Codes 

other thpn the Coc.e f or tiH·· tred e or ind.ustrr v·hich e:nbr c: ces his 

princip?l line of business, nrovioe c that he shBll submit such 

informa tion end c orn-ol y vit h sllch regul F> tion s vrith re s pe ct to such 

exemp tion es Fi:-·..A y r e l·uire or pr escribe . 11 

The .. :ooificetion end the F..evised Bud g et enci :Sc-sis o:£' Contribution 

are set fort h in Schedules 11 :\. 11 pnd w_, 11 vttached he reto and made <" pert 

her eof . Additionp l co oies of such ~~ ific~t1on and. such F.evised 

~d ,e t an c' Rev i sed BP sis of ContrLmtion etre PVFJilfl ule at the office 

of the l''a.ti onpl F:.ecov e ry Ad 11inistra tion, }_oom 4213 , Department of 

Com.1erce Bu ildi nE: , - e>sh ing ton, D. C. 

N.__ J: ICE IS .rn.:E.B:lY GIVEN tha.t any criticisms o.;;_, objecti ons to, or 

sug.cr,estions c oncerning said ::od iricr tion and/or .Rev iser 3ud P,et and/or 

hevised BPsis of Contribution and/or ~x ception, q~st be submitted to 

Deputy Ad minis tretor Dean C- . Cd•;•prds, r.oum 4~ ~) , Depc:lrt .tent of Commerce 

.3uilding , \1ash 111f. ton , D.C., nrior t o Thurscay , June 28 , 1 934 , etnd thPt 

Se.i c Mooii ica.tion aY'Id /or hevised Budge t n.nd /or r.evised Br- sis of Contribution and/ or Exce-pt ion mey be FlT.•prove6. in tl e r or1.1 nov• subui t ted and/ or 

9811 
- 573-

in such form , substc:n:ce , 1J'Torc5in.c· e.nc/or scope as they mpy be modified 

and/or ::>Hlplified on the bP sis of c...riticisLls , objections or sugg estions 

sub111ittec , ano sunporting fpct::; received_, pursuant to this Notice , or 

other informptio~ or consideration urone rly be fore the Ad1l ini strptor. 

ny nerson submitting c:>ny such criticism, objection or su£Sgestions 

'lUSt s.tate his na!3e , the persons or group.s 'rhom he re>;resents, Pnd the 

.:c:>cts supuorting his criticism, obj e ction or su6 ge st ion . All mptter 

submitted mill be given due consi~erc:>tion pnd the A~~inistr to r mill 

act only after co!'sul ting 'fli th such of his Bdvisers as he may deem 

apnronric:>te . 

Dean G. I cnc- r ds , 

De~~ty AC.~ nist ato r. 

HUGH §_. JOIU\JSON', 

Adl1lin i st retor for Industri ? l r.e c over y . 

(H .B. : To Code Au thorities anc Trece and Industrial Associations anc 

.Agencies : 

The above contPins no t ice of po ssibl e ::- c tion in yrh i ch your me>1bers 

or other pc?rti e s '" no .,n to y ou. :ney be vi t C' l lv int e rested. . You 

c>re urged to eAercis e e •i ry reA s on.sble efrort to cause the 

sub j ect metter t o ·oe crlled to t n eir rttention , ) 

Fr.O? OSED A.iiL8PDliEfT TO THE CODE OF FAir. CO[v;?ETI TI OJ'T 

.E ~ TH~ LADI~A 'D:B ·G IFI:USTJ.Y 

The Code of iPir Comuetition for the Ladies' Pendbag I ndustry is 

hereby C'l'1ended by striKing out Section 6 c:>nd 5 (f) of Art i c l e VI so 

th?t Sectio 7 of the Code 8s· it· nO"' reads. shall become Section 6 and 

Section 8 of the Code as 'j t noVl reeds hell. become Section 7 and 

substitu.tin~ the fol in~ for Sect i Dn 8 (£): 

(f) 1. It bein~ founc ne cesspry in orcier to suppor t the Administretion of th1s Code and to m..- intc-in the stanC.erds of fpir com~eti ion 

esta_olishe0 hereunder pnd to eff e ctuat e t he policy 01 the Act , the Code 

Au.tho ri ty i s autho r ized;· 

9511 

( a) To incur such r e asoneble obli ~tiops P~ are necesspry and 

p r oper for the fore .;;oing pu~poses . and to !~eet such o l, l igc>tion s aut of funds ·orhicn IDElY be rc: i s e d s here ine1 fter p r ovided c>nd nhich sh?ll be helc in trust for the purposes of 

th~ Code ; 

(b) To sub:ni t . to the .rr ... 1ini s tra tor i. or his ap r ovpl , subject 

to such not i ce ."'nc opDortun ity to be c· a~d as h may cleem 

necess.sr y (1 ) an it emiz Gd budget of its e ti1uete6 e>..u ens s 
-574-

for the foregoing Durposes, anci (2) Pn el·-·.li table bPsis upon 

wh ich the funds necessc-nr · to sur.:-port such bud.o;et shell be 

cbntributed bv me1t1bers of the industry: 

(c) .After such budget f!nd basis of contribution h pve been ap-. 

proved by the Ad.ministr.Rtor, to determine end obtPin equiteble 

contribution as above set iorth by Pll me:nbers of the industry, 

and to that end, if necessary , to i ns titute legal proceedings 

the refor in its o,"'n n?me. 

2. E?ch member of the industry shall pay h is or its e ' ui tPble 

contrib'c1 tion to the expenses of the mFtintenance of the Code Authority, 

d~termined as -hereinabove provided, and subject to~rliles and regulations 

pertaining there to issued by the Aomi~istrator. Only members of the indus t ry C01op lying with the code a.no contributing to the expense s of its 

administration as hereinabove provided, shall be entitled to DPrticip?te 

in the selection of me i.Ibers of the Code Aut1'1ori ty or to receive the benifits of any of its volunt a ry activities or to make use of pny emblem 

or insignir of the .FationC11 Itecovery Ao 1inistra.ti on. 

3. The Code Authority shalJ n P. i t he r incur nor pay Pny oblig?-

tion in excess of the amount t here of as C; Stimated in its Pp-proved budget, 

except u pon approvpl of the Aoministrc1.tor; Fnd n o subse<.<uent budget shell 

cont2in pny deficiency i tern for expenc:i tures in e.ilcess of prior oudget 

estimates e xcep t thos e mhich the Administra.tor sha ll have so approved." 

SCHEDULE 11 B11 

____ BU~GET .,._.._ 

Code Authority: Ladies 1 1'andbag Industry 

Address: 303 Fifth Avenue, Ne"?r York, N.Y. 

BudgetPry Period: From Herch :?6, 1934 to .iarch 26 , 1935 (lC' Mo ntLs) 

~ffective Date of Code : Mprch ~6 , 1934. 

I;ASIS OF ASSESShiE1:\1T FOR ISCAL YEA.."'- ivi.lu.1CH 26, 1934 ·I'O H.Al-.CH 26, 1935. 

The Basis of assessment for the authorizeO. eJ..penses of the Code 

Authority in this Industry sha ll be one-third (l/3) of one (1) percent 

of the dollar sales voluiJe. The estimated totc>l yearly d.ollpr sales 

volume in this Industry is $50 , 000 , 0JO .OO. One-th ird (1/3 ) of one (1) 

percent of this pmount i s 166,6~ 0J . It vdll be noted that this 

budget c a lls for a total e?'--penditure of $133,540.00 for the first fiscal 

year. Att ention is called to the fact that t he budge t is estimated on 

a basis of ninety (90) percent of the total estimated dollar sales 

volume to guard against possible inaccur8cies in the esti:nate. Should 

the actual income of the Code Authority on the above bc? sis exc e ed t he 

authorized eJ..penditures, pnd al1 such eJ..c ess funds will be refu nded 

pr onortiona t el y to the members df t he Industrv at the end of each month. 

9811 
- 575-

Eeceints: 

Actual .neceiuts for elapsed portion of burge tary perioc f rofl1 l'iar ch 26, 

1934 to June 1 , 1934 • . .. .... . .. . . .. . .. • ... .. • ... . . . . ..... . . . . .. $ NO!T1 . 

Estime'lted .f.~ cei-ptsfor rE:mP.inde r of buciget8 r y perioC: encing 

Mar ch 26 , 1935 ......... . .... . . . ................... . . . ..... ... . $149,..999 . 0 .) 

Total eceipts for Entire Bucigete'lry Period 

.Actual 

Expenciitures 

Expenditure s .rumber fo r .t:l apsed 

Period 

.A· Sala r ies 

Chief Executive Officer 1 $· 600. 00 

Othe r :::xecut i ves 2 1 , 000. 00 

Code A-__ thor ity ~.:embe rs -... ---- ---

Legal Counsel --- -----

Clerice'll Employees ,... 144 . 00 ,.-

Othe r Employees 7 --------

Tot 8.1 SEl l e'lries $1 , 744 . 00 

B. Oifi c e Expense 

Rent 

Hater & Li ght 

Telephone &: Te l egr aph 

Office Eoui ~;;n t 

Stationery anu Suppl ies 

PG>ta.ge 

?r 1nting and 1timeographing 

tH scellPneou s expense-Office 

Packing Material s 

$130. 00 

50 . 00 

500. 00 

250 . 00 

250 . 00 

250 . 00 

150. 00 

Total Office Expense $1 , 580. 00 

9811 

Herein Covered 

Estime'lted 

Expenciitur es 

fo r :ternainde r 

of Per iod 

$ 9, bOO . OO 

14 , 40 =· . 00 

--------- --------- 9 , 796 , 00 

14 , 30: .oo 

$43 , 29ti. OO 

$ 2, 570. 00 

300. 00 

1, 450. 00 

1, 50!J. OO 

1,250. 00 

2 , ?50. 00 

3 , 250 . 00 

1, 350. 00 

500. 00 

$14 , 420. 00 

$149 , 999 . 00 

TOT.AL 

$ 10 , 400. 00 

15, 400. 00 

--------- --------- 9 , 940. -JO 

14 , 300. 00 

$50 , 040. 0) 

$ 2, 700 . 00 

30~ .; 00 

1, 500. 00 

2 , 000. 00 

1, 500. 00 

2 , 500. 00 

3 , 500. 00 

1, 500. 00 

500. 00 

$16 , 000. 00 
c. Gener81 Expense 

TrAveling E~pense 

r1embers of Code Authority 

Employees 

Accountents 1 ::?ees 

Insurcnce 

Othe r Expenses 

Meeting Expenses 

Contingencies 

TrPde Development Pnd 

Research 

: ··La1\3ls 

Advert_·_ sing 

Tot Pl Gene r el Expense 

Tote.l of all ExpencU tures 

.r unctionc; l Itecppi tulAtio~· 

:b'oregoing ·Expend.itures 

Gener F> l Admi~istrr-tive 

.r.- unctions 

StPtisticPl }tinctions (collection of stptistics, 

reports, etc . ) 

Compli nce b~nctions 

Other .b unctions 

LPbel Distribution 

Trpde Develonment ~ 

hese ::: rch 

Contingencies 

-576-

$ ·250 ... CG 

500!.,00 

1,000.00 

------

250 . 00 

------

------

------

300. 00 

$2 , 300. 00 

$5 , 624.00 

$2 ,600.00 

574.00 

2,450. 00 

·rot ,)l Expenditures by uncti ns: 

<g 5,'624. 00 

en l Informp tion 

1\.Tumber of esteblishments to be :>ss e ssed 

Number of ~t Pb lis hments in Industry 

Annur l net sAles for 1933 

Numbe r of employees ps of J:lecember 1, 1~33 

$ 2,250. 00 

9', 500.00 

4,000. 00 

500. 00 

2,250.00 

5,000. 00 

15,000 . 00 

Z5, 000. 00 

1,700.00 

$65 , 20J. OO 

1~ 7' 9lc3. 00 

$2@,200.00 

1'7 , 386 .00 

37,330. 00 

25 , 080. 00 

15, OJO. Y' 

5, 000. 00 

$ 2,500. 00 

10,000. 00 

5, JO'J. OO 

500. 00 

2,500. 00 

5,0 -:.'0.00 

15,000.00 

25 , 000. 00 

2,000. 00 

$67 , 500. 00 

$133, 540. 00 

$30 ,800. 00 

17,960.00 

39 , 750 . 00 

25 , 000. 00 

15, OJO. 00 

5, 000 . OJ 

$127 ,91 6. 00 t l33,540.00 

rpproxi:nc?tely 500 

FpproAimr1ely 500 

II ~45 , 000, 000. CD 

I' 15,000 

I, ;.'fpurice S. · ossesson , Executive Secret :- rv of the LPd i es 1 !-iand ~g 

Code Authority , he reby soler.mly oeclPre thPt the i terns con teined in 1he 

foregoing bud get ere proper nd correct, c?nc' t n? l the nroposed expendi t1:res \ 

9811 
-577-

r·nd Pssessrr. .:mts nere duly Ppproveo by the Code Au t nori ty Pt its session 

held i Y' e'\"· York , IJ . Y., on A-ori l 26 , 1934, P S er certified cony of 

1a inutes c>tt? ched to or i g inPl bu c1get end. her ein revise d to conform with 

requirements of the f ;c? tionc?l Recove ry .t~.dmini st rc?t ion. 

Maurlce S. Mosesson 

June 9, 1934 

E X H I B I T A. 

The r e a re no pc>rt time empl oyees. 

E X H I B I T B 

Temporary Office 

Room 1605 

303 ii'ifth Avenue 

r e v• York , N. Y. 

Permanent Of fice 

Room 1 ..: 10 

347 Bifth Avenue 

:f\Te" 1 ork , IJ . Y. 

E X H I 3 I T . C 

A. Sal C?.ri e s 

l Compliance Di r ector 

4 InvestLe:at ors 

l Shopper 

l Stenographer 

l Clerk 

B. Office Expenses 

500~ charg~d to compl ic:mce 

U. General Expenses 

9811 

Traveling Expense 

Accounte?nts' ~ees 

Advertisinf 

Total 

$7 , 500 . 00 

$1, 500 . 00 

$10 , 400. 00 

7,840.00 

1,300. 00 

1,300.00 

940.00 

. 8 , 000. 00 

$ 9 , 000. 00 

1, 000 . 00 

$39 ,780 . 00 
-5?8-

E X H I ~ I T D 

Gener~l Administrative Function 

A. SPl eries 

Chi ef Executive Officer 

Other Executives 

1 Cl~rk 

l Bookkeeper 

1 SwitoL.t Board Opere'ltof 

1 Steno rE~ phe r 

J . Office Expenses 

50% 6hrrge d to administration 

C. General Expenses 

$ 5 , 200 . 00 

5 , 000 . 00 

1,3 .JO. OO 

1, 560 . 00 

940. 00 

1,300.0Q_ 

Traveling Expense-Code Authority Hembers 

Employees 

$2500 . 00 

500. 00 

500. 00 

500. 00 

Accountants' iees 

Insurence 

Meeting expenses 

Advertising 

A. S<"1leries 

Chief Executive 

2 Investig;C~tor 

1 Stenog re.pher 

1 C1erk 

EXHlll iT E 

StetisticRl }~nc tions 

2500 . 00 

1000.00 

$,:; , 200 . 00 

5 ,1 b0 . 00 

1 , 300. 00 

1 , 300. 00 

$15 , 300. 00 

8 , 000. 00 

7,500. 00 

$30 , 800. 00 

$12,960.00 

B. Gene l Expenses 

9811 

TravEL ing xpense 

Acco ntents ' r·ees 

$2 , 000. 00 

3 , 000 ,. 00 5,000. 00 

17 960 00 
-577-

F·nd Pssessments ''rere duly Fpproveo by the Code Autnori ty Pt its session 

held ir> _'eV" 4ork , !J, Y., on Auri l 26 , 1934 , ::-s er certified co"Dy of 

1ainutes c>tt.c>ched to originc>l bu0get 2n<i her ein revised to conform with 

requirements of the 1\ietion?l Recovery H.cminist r?tion. 

~aur1c e S. osesson 

June 9, 1934 

E X E I B I T ~ 

rhere c>re no pc>rt time employees. 

E X H I B I T B 

Tempor2ry Office 

Room 1605 

303 Li'ifth Avenue 

}.Tevr York , N.Y. 

Permanent Office 

Hoom 1510 

347 ]ifth Avenue 

l\ eP York , T. Y. 

E X H I 3 I T , C 

A. Sal?.ri es 

1 CompLiance Director 

4 Inve sti.e;2tors 

1 Shopper 

1 Stenographer 

1 Clerk 

B. Office Expenses 

50% char g~d to compliance 

B. General Expenses 

9811 

Traveling Expense 

Account?nts 1 rees 

Advertisinf' 

Total 

$7 , 500 . 00 

$1, 500 . 00 

$10 , 400.00 

7,840. 00 

1,300.00 

1,300. 00 

940.00 

... 8,000. 00 

$ 9,000.00 

1, 000 . 00 

$39 ,780.00 
-578-

EXl-II IT D 

Gener~1 Ad rn inistrative Function 

A. SP1eries 

Chi ef Executive Officer 

0ther Execut ives 

1 Cler k 

1 :Bookkeeper 

1 Switoia Board Opere'ltof 

1 StenogrElpher 

J. Office Expenses 

50~ che r ged to R6ministration 

C. Gen er al Expense s 

$ 5 , 200. 00 

5 , 000 . 00 

1, 3 ]0 . 00 

1, 560. 00 

940 . 00 

1, 300. 0Q 

Traveling Expense-Code Au thority Hembers 

Empl oyees 

$2500 . 00 

500.00 

500. 00 

500. 00 

Accountants ' iees 

Insurence 

Meeting expen ses 

Advertising 

A. SEl l e ries 

Chi ef E:xecuti ve 

2 I nvestig8t or 

1 Stenog r apher 

1 C1er k 

E X H I ll I T E 

Stetistic~ l l~nctions 

2500. 00 

1000.00 

$5 , 200 . 00 

5 ,l b0 . 00 

1,300 . 00 

1, 300. 00 

$15 ,300 . 00 

8, 000 . 00 

7,500. 00 

$30 ,800 . 00 

$12 , 960. 00 

B. Gene r rl E:xpense s 

9811 

Tr8veling Expense 

Accountents' I"ee s 

$2 , 000. 00 

3 ' 000 ,, 00 5,000.00 

$17,960. 00 
ReGistr-y- l~o. 236/l/01 

Ap.:;roved Co(e Eo . 332 

-579-

~ATIOl:AL RECOVEi:tY AD1"Il1ISTRATI01T 

Larch 16, 1935. 

Hotice o-f Opp ortunity to be Heard 

Adninistrative Order Ho . 332-22 

LADIES I P ....AJiDJ:,AG IliDUSTRY 

(Co<ie Aut o:-.. it~r Budge t and -aasis of Contribution) 

The CoG.e Authority for the La sies 1 HanG.bag Industry has r.1ade 

ap~licution to the National In clust~ial Recove~r Board for ap,roval of 

its bu(:;et, fol~ , and of the basis of contribution by members of the 

Ind.ustr;:,r , t v , the ex:_Jense of adnini stering the Cocle f or the p eriod fran 

·:arch 26, ~3 5 to Larch 25, 1936. 

The to tal a.I!lO"t.mt of sai d. budge t fol1 the said period is $110, 641.00. 

The basis of .contribution is as follo,.:s: 

One-fourth of one p ercent of the s a l e s of the oembers of the 

Indust1 . 

Se.i<i Bucget is set forth on the :i.1everse side, TJar1::ed Schedule 11A11 , 

a.11.d he:i.1eby n2.de a ~j art hereof. 

Additional copies of said budge t are available upon request at the 

office o:: the national RecoveJ:Jr Administration, Roo:1 4035, De~Jartment 

of Co:r:.e:;_~ce Building, '!Jashing ton, D. C., and at 347 Fifth Avenue, 

NeuYor:: , :- . Y. 

10TIC~ IS HEREBY GIVIDJ that any criticisms of, objections to, or 

sueGestions concerning said budf;et anc'.. said basis of contribution must 

be subn ittecl to De Juty Adr.1inistrator Ualter L;ru1gun, ?..oou 4035, Department of CosL~ erce :i3uilo.ing , ITashinc;ton, D. C. , prio r to Friday, 

A:9 ril 5 , 1935, and thc.:..t the National Inci.ustrial Recove ry Board may approve saiC_ budg et and basis of contribution in their pl ~sent form and/or 

in such forn, substa11ce, woro.ing anc1/or scope <='-S they 1:1ay be revised on 

the basis of criticisms, objections, or sugce stions subr:litted ancl supporting facts received yursuru1t to t h is notice, or other considerations 

properly before the Ha tional In<iustrial .rtecovery Board. 

Any ~J erson submitting any such c ritic ism , objection or sugg estions 

must state !_ is na.ne, the pe rsons or b roups Dhon he ro:prcse!).ts, and ... the 

facts SU)}lOTting :his objection, criticism, or suggestion . All matter 

submitte d. Fill be given due consideration and the National Industrial 

Recovery :Board nill act after consulting nith such of its advisers as 

it may cleen appropriate. 

\Val ter : ~an ?;Um, 

Deputy Aili:inistrator. 

9811 

National I ncustrial Recovery Board. 

By: W. A. Harriman 

Administrative Ofl'icer. 
-580-

(N.E.: To Code Authorities and Trade and Industrial Associations 

and. Ac;encies: 

11he above contains notice of possible action in uhich your nem~ 

bers or other parties JrJlown to you maJr be vi tally interested. 

You are urged to exercise eve ry reasonable effort to cause the 

subject matter to be called to their attention . ) 

ESTII.IATED EXPENDITURES: 

t . Sal aries (See Exb .A) 

No. of 

Empl·oyees 

Executive Salaries 3 

Cl erical Employees 11 

nvesti~ators 6 

Tota l Se.laries 

.. Office Exl')ense 

Rent 

Light 

Tel ephone t . TeleGr aph 

Office Equipn ent 

Stationery 8: SulllJlies 

Postage 

Printing t.:. Mil ·eographing 

Subscriptions 

Handbag s Purchased 

Regional Off ice Expense 

(See Exb .:B) 

l.iiscell aneous E:::pense 

Total Office LJxpense 

• General Expense 

Traveling t:~1en e (See E::-;:b . D) 

i.1 embers of Cocle Authority 

Employees 

Accom1tants 1 Fees 

Insurance 

Advertising 

l.ieeting E.::-::p e:1 se 

Cost of Label Sales 

Design Registration :Bureau 

Statist ico.l Horl;: 

Trade Developoent & Research 

Allo~7ance fo r Contingencies 

Total C--ene ral Expense 

Total of All ETpenditures 

9811 

SCHEDULE "A" 

E s t i m a t e d E x p e n d i t u r e s 

I.Iarch 26, 1935 

t o 

June 16 , 1935 

$ 

$ 

$ 5,859 . 00 

2 , 217 . 00 

2 , 324 . 00 

$10 ,400.00 

$ 885.00 

15.00 

700 . 00 

200 . 00 

500 . 00 

l, 000 . 00 

800 . 00 

40 . 00 

50 . 00 

2 , 000 . 00 

200 . 00 

$ 6 , 390 . 00 

$ 1,000 . 00 

1 , 800 . 00 

800 . 00 

500 . 00 

200 . 00 

700 . 00 

3 , 000 . 00 

750 . 00 

2 ,000. 00 

2,000 . 00 

2,000 . 00 

14,750. 00 

31 , 540 . 00 

June 17, 1935 

to 

Lar. 25 , 1936 

$ 20,141.00 

7 , 635.00 

8,000 . 00 

$ 35 ,775 . 00 

$ 2 , 655.00 

60 . 00 

1, 300 . 00 

550 . 00 

1 , 000.00 

1 , 500 . 00 

1 , 700 . 00 

60 . 00 

150 . 00 

3,000 . 00 

550 . 00 

$ 12 , 525 . 00 

$ 2,000 . 00 

4,700 . 00 

1,200 . 00 

300 . 00 

300 . 00 

1 , 300. 00 

12,000.00 

3 , 000 . 00 

3,000 . 00 

3,000.00 

$30 , 800 . 00 

~79 , 101. 00 

Total 

r.iarch 26' 192 

to 

r.:arch 25, 192 

$ 26 , 000 . 00 

9,852 . 00 

10 , 324 . 00 

$ 46 ,176 . 00 

$ 3,540 . 00 

75 . 00 

2,000 . 00 

750 . 00 

1 , 500.00 

2,500.00 

2 , 500 . 00 

100 . 00 

200 . 00 

5,000 . 00 

750 . 00 

$ 18,915 . 00 

$ 9~000 00 

6,500 . 00 

2,000 . 00 

800 . 00 

500 . 00 

2 , 000 . 00 

15,000 . 00 

750 . 00 

5,000 . 00 

5,000 . 00 

5,000 . 00 

$ 45,550. 00 

~110 641 00 
- 581-

CEDULE 11 A'' con t 1 d . 

• FUUCTIO::.-AL ?.ECAPITULATIOU OF OREGOI~ G EXPLliDITl.hlES: 

General d:-.1 il~ . Functions 

Statistical FuLnctions 

~or:rpliance Functions (See 

Label Fu.nct i ons 

$14 ,341. 00 

2 , 200 . 00 

Exb .E)9, 013 . 00 

Design ~egist~ation Bureau 

rr ade Developnen t & Re s earch 

.3. 236 . 00 

750.00 

2 , 000 . 00 

Total E~:::JJ en di t.ure s by 

Functions 

9811 

$31 , 540 . 00 

$33,986 . 00 

3 , 691.00 

25,612.00 

12,812 . 00 

3,000 . 00 

$79 ' 101. 00 

$48 , 327. 00 

5, 891. 00 

34,625 . 00 

16, 048 . 00 

750. 00 

5 , 000 . 00 

$110 , 641 . 00 
-582-

NATIGNAL RECOVERY ADMINISTRATIGN 

Registry Noo 226/l/Ol 

.A,"9proved Code lJo., 332 Mc.y 25, 1935 • 

·Notice of Op:oortuni ty to be Heard 

..Administrative vrder :No. 332-26 

LADIES 1 HANDBAG INDUSTRY 

(Cod-e Authority Budget and Bt.si s of Contribution) 

WHEREAS, the Code Authority for the Ladies' Hqndbag Industry has 

nnde ap·) lication for :~r9 roval of its 3udget nnd ] a sis of Contribution 

for the p eriod from l.:arch 26, 1935 to Farch 25, 1936, and 

lfHERE.AS, t he Ha tional Inclustrial Recovery :Soard , on Ih .y 2•±, 1935, 

Jroved Order ~T . 332-25 , :? roving t~1e Budget and Bctsi s of Contribution 

for the Lad ies 1 Handbag InG..ustr:r a:!.1d , 

WJ:IEREAS, Grder No . 332-25, co:0ies of nhich G.re available u:9 on request at the office of the Na tiona l Recovery Adn inistrati0n , Room 3071 , 

Department of Cor.rr.:erce :Building , Wa shington , D. C., states in :p :trt that 

"(c) Thb follov7.i.ng basis of contribution by members of the Industry, 

authori zed by Article VI, Se ct i on 8 (f) , of s.:1.id Cocle , c>.s amended , 

for the period from Ha rch 26, 1 935 to J1me 16 , 1935; i of 1~ of the 

gross s a les of e0.ch r.1ember of the Industry , :payable monthly, based 

on his Cl:Lrrent monthly s a les e.urlng the budgetary period , be and it 

is hereby p~ roved; 

9811 

PROVIDED , HG".7.£VER, that r:1embe rs of the Industry shall purchase 

l abels to be used on articles !11anufactured and/or sold at the rate 

of tno dollars and a half ($2. 5n) per thous:=md for the period fr.om 

Ma rch 26 , 1935 to June 16, 1935, and that the charges paid shall be 

considered as a deposit by members of the Industry to be credited at 

the end_ of ea.ch month o.uring the bud€:etary period against contri but ions due from said members of the Industry for se.id budgetary period, 

calculated on the basis of contribution set forth and approved in 

p a ragraph (c) hereof; 

11 (d) The following basis of contribution by members of the 

Industry, authorized by Article VI , Section 8 (f) , of sa icl_ ('ode , as 

amended, for the period~ from Jurle . 1?, 1935 to r:arch 25 , 1936; t of 

~ of the gross sales of each member of the Industry , payable monthly, 

ba sed on his current monthly sales during the budgetary period , be 

and it is hereby approved upon the condition that said Code is extended_ by oper<:'.tion of law, or othernise, to include said period, 

and up on the further condition t he.t the Code .Authcri ty shall levy no 

r1.ssess;:1ents for the p eriod. after June 16, 1935, ·until the National 

Industrial Recovery Bo.:trd, by its further order, shall rer:1ove this 

f u rther condition of Jp roval of s a id b 'l.sis of contribution; 

PROVIDED, !10ITEVER, tha t members of t h e Industry shall purchase 

labels to be used on articles mamxfc.ctured and/ or sold at t~1e rate 

of h 7o o.0llars and a ha lf ( $2. 50) 1.JGr thousand for the period from 

J1.me 17, 1935 to L:arch 25 , 1936 , ;':nd. the.. t the che r ges yaid shall be 

considered as a deposit by members of the Industry to l)e credited at 

the end of each month during the budgetary eriod against contributions 

due from said members of the Industry for said budc;etary period, 

calcula ted on the basis of contribution set forth nd approved in 

paragraph (c) hereof; 
- 583-

NGTICE :!:S HERE3Y GIVEN t hat any cri t i c i sn of, ob jections to or 

sug';esti ons ~o nc ing said vrde r .~.:o . 302- 25 , must be s ubmitted to wu ty 

Ac}Jninistra t or ·.:!Jlt e r ! a ngun , ?.oom 3071 , p~ rt r1en t of Co:n'";e rce ]ui l d'ing, 

Wa shingt on, :J. C., p rior to : .. onday , June 10 , 1935 , and t hat s ...... id l abel 

cha r ge s nay oe co!Tle eff e ctive in thei r en t fo r "Tl , subst ance , ":'Ord ing 8- nd/or 

scop e a s ~1 y :- .a: be revised on t he basis of criti cisms, obj e ctions or 

sug:;e sti ons submitte d ·1.nd su.ppc rting f.q c t s r ece ive d )Ul'SDant to t hi s 

notice , or ot~1 er co 1s de ti ns p r o:!_')erly befor e the 1: n ti ona l I ndustria l 

Re cove ry Boc:.rd. 

Any p erson su bmitting any s~ h c riticism, objection or ug sti n 

I:'lust sta te h is ncuJe , the '? ersons or g ro"LT0S wl1om he r e:9 resents , C~ nd t he 

f~ cts sup·9orting his ob jection, cri ticism, or ug ~· es ti on . All natter submitted wil l be g iven du e c on si dera ti on and the Na tiona l I ndustrial Recovery Boa:..,d. u ill a ct aft er c onsulting ,-i t h such of its advise rs a s i t 

may deem appr opr iate . 

Nationa l ust l Re covery Boa rd , 

\7 a lter Ifian t;um , By : ·.1. A. Harriman , 

Deputy Administr ator. Adm ini st r a ti ve Off icer. 

(N. B. : To Coo e Au t h ori tie s nd c-~.G.. e I u l.us tri a l r-md Associa t i nns and 

.Agencies: 

81 1 

Tne a~ ove c 0nt 2.ins noti ce of -_Jo ssi ble a c t i nn i.n '7hi ch ~.ro t.:' r ~J rs 

or parties knoun to you may pe vit a l l y i ntPr est ed.. You a r e u r ged 

to e xercise every r eas onabl e effort t o caus e t he sub j e ct r.1a t ter to 

be ca lled t o t ne ir a ttent i on . ) 
-584-

NATIONAL RECOVERY ADMINISTRATION 

Reeistry No , 236/1 / 01 

A9proved Code No . 332 

6123-A 

Su:p:p lement9-ry Notice of He a ring: No. 367-D. 

June 28 , 1934. 

LADIES H.A.lJ"'D:BAG I NDUSTRY 

VfHEREAS, Section 10 of Article 5 of t he Code of Fa ir Com:p e tition for 

the Ladie s Hanc1bag Industry p rovides in p'l.rt that the Code Authority shall 

11 study and i nvestigate the p roblem of l1omewcrk in this L1dustry , and shall 

made to the ~dm inistrator recommenda tions for t he eff e ctive a nd ap~ro:9riate 

control of such homework a s is herein :yermi t ted 11 ; a.n.d 

WHEREAS , the Code Aut hority has ac~ e to the Administrator certain 

recommendations f or t he effective a..11d ap11ropri a te control of such homework as is p ermit ted by t h e Code, such recom:-nendat ions are incorp orat ed 

in Schedule "A", as attached ,' and he ire by made a part ::O.ereof, and 

' 

~tlEREAS , the Administra tor deems a Hearing necessary and p roper to 

determine the matters here inab ove rP-ferred to and to make ~~y modifications, 

amendments , or additions necessn.ry in a ccordm1c e :"Ti t h t he l) rovisions hereinabove set forth. 

NOTICE IS HEREBY GIVEN t hat a Public Hearing 'Hill be coi:.cluctecL by the 

Admi nistra tor, beginning a t 10 : 00 A. r:1 . , 1.1 onday , July 9 , 1934 , in t he Rose 

Room, ·;vashington Hotel , Washi ngton, · D. C., and c ontinuing until CO::I:t;)leted. 

An opportunity to be heard ( either in :9er so n or by dul_y a:ppointed representative either by appearance or b;r sending a f!ri tten or telegraphic 

statement) wi ll be given to ::;>ersons or grou:9s who can show a substantial 

interest as wo r ke rs, emp loyers, consUP.Jers, or otherwise, in the effect of 

this question, 

Tho s e wishing to be heard nmst com:p l y with t h e following simple requirements: 

(l) A '.-.rritten or t e leg r aphic request for an op2_) ortunity to be heard 

must b e f iled before> noon on at c~ay , J u ly 7, 1934 , r.ri th the Ad.mini strator, 

Room 4215, Department of Commerce :Builo.ing , "Jashi ngton, D. c. 

( 2) Such request shal l sta te t ~e name of (a) any 1e rson s eek ing to 

testify in t1 3 Hearing , and (b) the persons or g rou:os whom l1e represents. 

( 3 ) At the Publi c Hearing s , a l l uersons are rega r ded as witne sses, 

and shall p r esent orally facts only and no t arewn8nt . Written briefs or 

a r gwnents may be filed , but ora l p r esenta ti ons will be confined to factual 

statements only. 

( 4 ) I n the discretion of the Deputy Administrator in charge of the 

Hearing, persons wh o have no t comp li ed rrith t!le requi r er1ents of p aragraph 

(1), above , J'lay be :p ermitted a t any time p rior to tne close of the Hearing 

to file written statements conta i ning :9 rop osals re l ative to the matters 

heard therein sup2_)orted by ~er tinent informati on or argument. Such written 

statements rmst be condensed a s !nuch as p ossi.ble, 

9811 
- 585-

Public He::>.rings a.re solely for the urpose of obtaining in the most 

direct mnn~1er the f a cts usef cl to the Adnini s tra t or, and. no .:trgu;--Jent s 

will e heard or considered a t t~is time . Re0resent a ti on of int erest ed 

parties by a ttorneys or speciali::>ts is )err·!issi ble, but i t is not to be 

r egFl.r ded e.s ne c e ss·"'.r y . I ndustry , wo r kers, and the consuming pub li c '.7ill 

be r qp resent e d by sye cial advisers eo loyed by the Gove rnment. 

Dean Q.. Ecivvards, 

De~u y Administrator. 

HUGH S. JCHlJSON, 

Administrator. 

~ • .B.: To Code Au thorities and Trad.e 9-J."ld Industrirtl Associations and 

.Agencies; 

The bo·~e c ont u.L1s notice of possible nction in uhi ch y our members 

or other pQrties k nonn to you m~r Je vitally i n terested. You are 

urged to exercise every reasonable effort to ca 1.se the subject rrhtter to 

be ll d to their attention.) 

Schedul e 11 A11 

PRGPOSED AI iE!IDLErTTS 

TO T~ E 

CODE GF FAIR Cul\IPETITIGN 

LADIES HA1JTIBAG LJDUSTRY 

.TJ1e Code of Fo.ir Coi!lpe ti tion f or t he LD.dies' Hand.ba g Industry is here by anend.ed by addine; the follo wing as a nerr 

Article IV, Section 8 of s a id Code: 

9811 

11 ::L·i1e Co0.e Authority shall cre~ e a F.ome':"lork Commission 

~h ich snall e st ablish ~inimum ieee wo~k rates f or 

hr nd bea.ding , hand Cl'OchetL1g, nd hand embroidery, 

n.nd no n e;Jber of t he nc ustr~r shall compens:tt.e ho;-newn ~e rs at le s s t ho.n t .Lle ·)ieee nork r •.t es established 

b~r s . ..,,id Corr1 i ssi on. Sa id Co:·1o;i ssion shall e st :"lbli sh 

·oiece :m l~ r a tes 1:;hi ch shall be Pqui valent to a mini-

:.mm hourl :r r a te of t -.;-1 enty-five c ents ( 25¢) for '.-w r kers 

continuously engagPd. S"'.id CciT1i ssion shall be 

supported by -,embers of t he Industry ngnged L1 t h e 

manufacture of hand.bas s b7 means of h...,_nd be ad ing , 

he_j_1d crochetL.1g, 0.nd nand embroidery, and s.1ch nembe rs 

of the Industry shall co~tribute to t he supyort of 

said on~ ission by a :t1ethod of assess:r'lent to be 

ar,roroved bJr the Administra tor 11 • 
-586-

NAI I OlJAL HE CO VERY ADI ;nnsTRA.TIOH 199 8-.A 

eg ist~J Eo. 236/1/ 01 

Uoti ce of Hearing : No. 367. 

i ovembe r 28 , 1933. 

TH:::G LADI:SS EAl::Oi3AG ETJJUSTB.Y 

The abo ve industry a s repres ent ed by t he Associated Handbag 

Ino_ustrie s of Auerica, Inc., I.Iidrrest Handbag and_ Small Leather 1Jares 

Associ2.ti on, I::1 c. , an G. t he In<iustr ial Council of the Ladie s rtandbag 

In <iu stry, claL1ing to rep res ent jointly app ro x i mately 75 per cent of 

the vol1..ue of the industry, has snbE1ittec_ a p :ropo s ed Basic Co de of 

Fair Coupe tition, copies of nhich a:re availabl e a t the office of the 

Nationa l =.e c ove :ry Admini stra tion, Room 3316, Ilepartn ent of Commerce, 

Ua shinGt Ofi , ~. C. 

Th e Co de f or t he Ladi es Handbag In d.ustr r in its p r e sent f orm merel y ref l ect s t he pl~opos .l of t he above menti on ed industr;'/ . and none of 

the provi sions contained therein is to b e re g~rded a s having received 

the a::9p roval of t h e National Re covery Adn1 inistration as appl y ing to 

this indu stry . 

uoriCE li HEREBY GIVE.LJ tha t a Publi c Hearin ~ on this Code ~T ill be 

conducted by t h e Administra tor, b eg inning a t 10 A. ., Friday, 

Decembe:c 8 , 1933 , in the Banqu e t :?..oon , Ca rl ton Hotel , 1Ja shington, D. C., 

and continuing lli~til compl e ted. An pp ortunit~r to be h eard ( e ither 

in person or ~r duly arJpointed re}Jr esent a ti ve s either by appearance 

or by s e:1cling a 11ri tten or teleg raphic statement) nill be g iven to 

p ersons or g roup s \'7ho can sho1.7 a sub st antia l interest as nor!{ers, eiJp loye:rs , co s1..~1 er s or othe r wise , in t he effe ct of any p :rovision of the 

prop osed Co oe . 

Tho se -r·i shing to be hea rd must comp ly \' i t l, t h e follon ing sir1ple 

requil~ ene n t n: 

(1) A rit te n or teleg raphic r eque st f or an ~p ortunit y to be 

heard must b e fil ed b e for e noon Thursday , De c enb e r 7, 1933 , 11ith the 

Division Adr11 i n i strator, RooTJ 4830 , Departnent of Comm erce, 

Washing ton , D. C. 

( 2 ) Such r equest shall sta te t he name of ( a ) any p erson seel::ing 

to testify i n the h ea ring , and (b) t h e p e r sons or g roup s Hhom he rep resents . 

( 3 ) Such request shall contai n a sta t enent setting forth ":7ithout 

a r gmnent, a p rop osa l : (l) f or t he e limina tion of sp ecif ic provisions of 

t he Code ; or ( 2 ) a modif icati on of a sp ecific p rovision, in language 

p rop o sed b3 t he u itne s s , or ( 3 ) a p rovision t o be a dded to the Code, 

in l anguage lJrop osed by the ;.ritness. 

(4 ) At t he Public Hearings, all lJers on s a r e regarded as 11itnesses, 

ancl shal l 2J r e s ent or a lly f a cts only and not a r g unent . 1iTritten briefs or 

arguments may be fil ed, but oral pre sent a tion s n ill be confi ned to 

f a ctual st a t ements only. 

9811 
- 58?-

' (5) In t h e discre tion of the :!)e mty Adninistrator i n cha rge of t he 

Hearin , pe r sons Tiho h a Ye n ot complied ':•.L th the requi rements of po.r ag ra:ph ( l ) , abo ve , ::11ay be ~l e:rni t tod <..t any t i r:e p rio r to the close of the 

Heari n0 to file Hritten st a t ccents containi nc; p:co-:_:;osals :fo r elini n8.tions 

froJJ , hl.oC:lficp,t i or_s of, or adcl.i t i oas to the Co de suppor t ed by pe r t in en t 

info luat i or: o:.· a:~g-une nt. Such uri tte.1 stat eMent s mu st be conclcnseC: as 

much as uossibl e . 

Publ ic ~ea r..g s a r e s ol el y or the 2Jurno s e of obta ining in t h e most 

dire ct n anne:r t he f a cts u seful to the ]._d2·1ini s t:rator , and n o a r guments will 

be hea:cd or conside red a t t h i s tine . Re_1l'escntation of i ntere sted parties 

by atto r ney s o:r spec i~ ts is pe ~iss b:e , but it is n ot t o b e regarde d 

as n ecessary . nd tr:, , \7 0rl~e , C;.l.:.1d the consu..rnin['; pu blic Tiill be r epr esent ed by special advi sors er>1ployed by the Go vernmcn t . 

A. D. Uh i tesic:e, 

Division ~J inis tor . 

9811 

HUG!i S. J oti'_.JSON, 

Acbinis at or . 
-5

NATIOHAL RE80V~RY .ADiHl\TI STRATI ON 

Registry No . 236 / l / 01. 

~')p rov ed. Co d.e . 3:5 2 

4487-A 

Notice of Hea r ing : i:~ . 067-A · April 1 8 , 1934. 

LADI ES H.AN.JBAG I PDUSTR'i 

(A )l cati~n for Bxc e;tion) 

A. l1u6.son Leather Good s , I nc., 8.') So . =3roc.orray , :r yc..c , Ne" York . 

B. Strand. Leather Goods Co., Inc ., 8 ··est 32no. Street, ... Jen Yo rk, rJ . Y. 

C. rr~ le ?e t bc~ ,:; , I n c. , 310 So . l lee c

1

.orr · Street , :g,i chmono.,- Va . 

D. P._ .ra.:;;on l'f 1e t~r 3ag Co., Inc .; UneedEt Belt Co ., Inc.; l~errburt; 

Han dBa{; Co ., I nc .; Licht &~> c1.I} , Inc. All ofNevrburgh, lLY. 

E. G. 3.~ Goc.f:r ey Co m~?an~r , Gc:u.'c1ner, l. as~ . 

The above CO''rp, ni es, no'7 opero.t i nt; 1E1de r t~1e Code o.f Fair Comoe tition f or the Ladies He nd.b G.;:- Inc>~s 'i , i1c:>ve submit t ed an a:pylication for 

exem·9tion fror:~ : (A) Articl e III--.ho-,UE'--Se cti or..s 1 and. 2 : (B) to em-

~9 1o r l earne rs ~u:rr an t to Art i .::;l e rv--·.:c.,:·e Q--Section 3 : (C) modification 

of Article IV---:.·a i::'e s--Se cti on s l, 2 , 3 , c.11c, 4 , (D) Articl e IV--Sect ion 1 

and 3 , (E) Articl e III--Hours--Section 1, Article IV--1:iages--Sec t ions 1 

and 6 of sa i d Coce , re•: ect iv r. 

The herein a.'oove ··1entionec. Article s of the Code of Fo,ir Co!:!pet i tion 

for t he LaCi.i e s Hol'} cl.br,z Incl:t::..st;:y p r e as set fo r th in Schedule 11A11 attached 

here to n.nd. hereby maC..e a ·!?art hereof . 

NOTIC:S ~ HSRLT3Y QJV:~l-i' that a Pub lic Hearing on the se exempt ions 

will be cond.ucte d. b3r t:1e A<iministr otor, b ef._"inr' L l(' a t 10 :00 A. L., Lfonday, 

J.:Iay '? , 19311, in Room 2062 , Cor1me rce :Oui lC:.i ng , ';Ja.shi ngton , D.C., and continuing unti l CO eted . An Op'f)o rtur..i tzr to be hea.r0. ( e ither in p erson 

or by duly cp::oo ihted rep r eE:.en t e tive c i ther by a._ppearance or by sencling a 

11 ri tten or t e l egr a'9hic statement) nill be g i ven to perc.;cns or g rou·os 11ho 

can shm-: a substantial int e r est as ':rorl;:ers, employ ers, consumers or otherwi se , in t he effect of this aue stion . 

Th ose r:i shine to b e hearcl must conrpl 7 \Vi th the follm-ri ng si mul e requi r em en t s : 

(1) A ,_-·ri tten or raph ic r eau est for an op'9 ortuni t~r to be 

heard must be fi l. ec'.. before no on m1 S['.t u rda-;y , Lay 5, 1934 , 11 i th the Admini strator, Room 4227, De?Jc:rtment of Commerce 3uilC:.in , "Jas}ling ton, D. C. 

( 2) Such re qu est shal .. l stat e t h e naMe of (a ) an;r persons see::: in,:; to 

testif r in the hea ring , and ( b) the pe rsons or group s r:hom he re:9 r esents. 

(3 ) At the ?ublic Hea:ri ngs, a.ll )ersons are rega rded as t'T i tnesse s, 

a nd shall :)resen t ora ll7 f a cts onl·.r e-nG. not argument . ':":ritten briefs or 

arguments r.1ay be f iled , but oral ~9 re nt tion s v:rill be confined to factual 

s tc;.t er1en t s onl '·'. 

( 4 ) In the di sc retion of t he De :)nty ;:..o.ministrG.tor in charg e of the 

Hee1ring , :9e:cso.1 s T''ho have n ot ,· li ed n i th t he requirements of paragraph 

(1), above, ma;r be pe rmitted a t any tirne )r ior t o the close of the Hearing to f ile Y'ritten statements cont a ii1ir..::; ro os ..... l s relative to the matters 

heard the r e in sm:roorted by pe rtinen t informa tion or ar::;ument. Such written 

9811 
- 589-

stat ements mu . t be conrenr:.ed as mucl1 n s ·;o p'·i b l e . 

?u.blic '!ee Tin -;r Ft-'e !SOL :;1 r f o :..· tl1e mT'_Jos e o: obt:: i n ing in t he most 

c.ire ct ma n:. e;· t'1e f' a cts '.sefu] to cJ.e .A CJJlinistn:o.tor, r-nd. no Lr,-::·mn ents 

·: il ,_ b o h ·'JaL".. o:- C'JnslC:.e rec. :.· t t h i.. s bre . ~eurcser. n. +- on oL' i }! te:restecl 

-_.Jart ie s b~r att.o:tne:rs or s'l")ecic ~_ t; ..... i P Je::.·mi.ssi "o le , ·out it is Eo t to be 

regardeo. ar ne ce c-~ n.rv . Inciustrr, m·c =r.: s , a nc t ,e con su'71in..r; public n ill 

be r €-.Jre sen tee. ~r SLl e ci e.l a 0vi s o r s e:·n lo-red ~r t he Government . 

Sol A. ~osenb att , 

Division Acmin i strator. 

4487-B 

4'J0l 

HUC-H _§.. . JOnNSON, 

A:.mi i.1i s t r at or . 

Co de of 7air Comu e titi on f or t:1e Lrdies 

1-ion c' bH. · I nc1ust ry 

A. Articl e III - Hour s 

Se ction 1. 

Except a.s here il1n.fte r ro •i ceCl. , no em:c'lo;re e shE~. ll be p errni tted to 

\70rk i n excess of fo rtv (40 ) hours in F.n- r one Feek: , mr i:1 e~ ce ss of 

ei ght ( 8) hours in C'.n-; t rren t y - four ( 24 ) hour p eri oC. .• 

Secti on ;-' . 

1·0 per s on em·Jlo;·ecl i n ship·!Ji ng , clericc>l , or office uork, unless 

he is emplo-red ii.1 a ma.ncge ri c:J.l or executive c ,- pa city a n d. earns not less 

than ~1 irt ve COll<?:, r S ( $3::5 . 00) per '.-:ee:., ~DJ l be :1e rmitte d. to FOrk 

i n e;:cess of fort-- ( 4-0 ) l:.o·:..<.rs lJer '.7·';.:.:.c ?ve:ra.._. ec: ov el' er.ci one (1) m0n t h 

period. 

B. Articl e I V - '::a s es 

Se ction 3 . 

The .Ac.r·1 i ni st r 2 t or me .. r, 'J.Il(er :~c e··; t i o~'1al cj_ rcun s tr1.nc e s , a nd u-·;)Qn 

such condi ti ons PS he ma:r lJr esc t'ibe , · r rl'11i t n. member of ~~he i nr;_u c:: try to 

emp loy ev ~~ ,..s c=tt :re.t es belm .. tl e liL..., imur.1 r:nge he 1·e L.1 est .: ·Jlished. 

C. Ar ticle I V - ;; es 

Se c t ion 1 . 

Except as he rei nD ft er ~)rov (ec. , no em·;lovee shC'.ll be pai d at l ess 

than the ra.te of t~1i r t v - f i v e ( 3)~~ ) 1a r ho ~u . 

Section 2 . 

liio 1i s~:i led emlJloye e en :::c;,s eo. i r: cutting , framing , ~ar L1e; , 

"JOC cetboo ~~ ma!;:inr and / or op e:;..·ating ( e~:ce:p t lini ng opere' ting , cementing 

a nd/or pac;t i ng ) em~lo,_rec1. in the man1ua rtut'e of Rn'/ of t he -~n·o 0uc s covered 

by the )rovi si o.ls of b1is Code , rna l.o of an.;r "'!ete ri a ls other t ir-m imitation eat~er , sh~ll be ua i d at l ess tha n the rat e of ~orty five 15~ ) ~e r 

hour. 

Section 3 . 

The Administrator mar, under e~:ceptio l circum£tr:n~ es , a n d u-o on 

such c onch tions as ~1e may -p re~ cr:i oa , ·.Jcn1i t a member of the inclustry to 

em lo y l earners a t l'Cttes oel m·.r t i1e min imum i7< .ge he !.'ein establi shed . 

9811 
-590-

Section 4 . 

This Lrt icl c ec:t;;·;-.li Gllss c- mi-:1im11IT1 ,_~c::o,;:a of ·1a~r ···i1ich sh;_ll a;_J:o r 

irres·oecti ve of '7heth or ';i1 ··~J loyae i >~ co-:T?en satec. Qj1 a. u iece :::C).te , time 

r a t e or otb.eJ.· b c.si s . 

D. Ar t icle IV - ~ages 

Seccio11 1. 

Exce•Jt as here i naft e r urovi0.e :3. , no errr lo~ree shal l be •Jaio. a t less 

than tl1e c of t:1irty- :'ive ~ents (35d·) '9er ~1ot::..r . 

Se cti on 3 . 

The Ao.minj s t:·-a.tor may , lJ.i-.d e: · e~ e--...t i •mal ci rc1::.ms ~ances, ano U!JOn 

such con e. it:~ons <-··' l:e ma:.r p r csc :J.'ib e , -,Je T;,i t ~- r1ember of the ndust ~r to 

emplo r l e.:•u1crs e.·c rat es belo1.-; the minirrJ.l.m ·.-Dr;e he rein est D.-b lis!.1ef. . 

E. Arti c l e I I I - ;~ ours 

Section 1 

E:{c eut as hel~ eina:f r jJrovicteo , no e:n::.")lovee shall be pe rrni tted to 

1,-rork in exc ess of :Carty ( 4-0) hours i n C'-J.'lY one -- ee~.::, no in exc ess of eight 

(S} hours in a ny t-nenty -four ( 24) ho1n ·')erioc~ . 

Article IV - ·.!ar;es 

Section l. 

Ex ce1")t as ~1ere ine.f er urovi c3.ed, no em-ol o-.ree shnl l b e pa.id at less 

than the r a t e of t h i rty- f i ve ~ents ( 5~) -pe o~r. 

Section 6 . 

The AG.mi ni st r e.t o:c rna -, ") :ll r ocomnenda t i o:.1 bu tl1e Cocl.e .Authority 

and after f u ll s tucJ.;;r and investi go.ti on ~)'' the Co de .Aut:10ri ~r , and after 

such notice an c3. l.1ec...ri ng as he shall --J ~~ escl~ibe , esta:blish, as a •Jcl..rt of 

thi s Code , suc~1 basic ro..t 0 s f or the T'10l~'-; skil }.ec3. classes of employee s as 

may be necessar:u to Jurthe:::- ef ·:~ ectuate tl1.e ··)Ur)ose s of the Act . 

9811 
- 59(!_-

Reg i ~t ~r 1JO. 235 /l/01. 5113- A 

Ap~roved Code No . 322 . Not i ce of Heari n0 : No . 367- B 

LADIES HA:m J AG I F:)USTH.Y 

:,HE~_s , Section l of the Ord.er of Harch l 4 , 1934 , ap~ rovin g the Cod_e 

of ~.?c:dr Co-·pe titi on f or t h e Ladies Hand .3ag In0.ustr-' , -o rovic!..es that Section 2 of Articl e I V of t he Co de bo stayed 11 n r.til the Code Au thority shall 

:pre~ent to t .'.1e AGJT1ii.1istr01.t or e, 'iefini tio ~l of tl1e term 1 s emi 4 ski lleC. employee ', as u s ed in sa ic. Articl e anc. Section of the Coo.e . 11 ; anr. 

1i7HE3EAS, Sec ti on <?, of Articl e VI of the Co c,e n rovides i n orde r that 

the Code Authorit:r shall , at al"l_ t i.mes be trul:r r epres en t c. tive of t he 

In dustr~r and in other res- Je ts com:·)l "' ,_-, i th the -Jrovi sions of the Act , 

the Admini st rcS.to r may :•Jrovi c1e suc.h Fe \~ Llgs 2.~ he mEW deem p ro11er, and 

may require a n ap-propri ate moC.ifice.t i or. i n ~1 e me thod. of sel e ction of 

the Code .Autl1ori ty; 

IHEREAS, t he Admi r.i strcS.tor h e.::. found it necessarv to determine said 

issues: 

NOTICE 1._§ :E~ ~-3Y QI V:C:ll tl1at a ? u uli.c -.-!eo..ring ,-,ill_ be conducted by 

the Ad,ni nistrptor, b c.;;in.-ir.:o; E,t l O:CO ii . Jt., Thursdc:·y , J une 7, 1934 , in 

the Ca-binet ~l oon , -.-:ilL-ro I-J:ot el, ·:.'r ·.h i r: .. :::tc;.; , D. C. , and continuing until 

com·o let ecL A;.-: O)l.Jo:.·tl:u:i t ··- to bo he cT::i. ( e i t.1er in person or b;r oul v a ppointed re:·Jr esentrtj_ve e i 1e~· b:r .~ le ;:;nce or o~' sending a ,--ri tten or 

telegr aphi c stf'tement) r·ill ·ue c~ i r c ::-: to :l cr·-:,on.s or c;r oups who can shon a 

substan ti a l int e r est ::-.s ··:r orkers, ertr<)lo:rers , consuv1 ers or other··rise, in 

the effe ct of t his ou estion . 

Th ose " i shi ng to be ~1e :c d must c om'lJl y -,ri th the fo llo --L1E; sim·ol e requi rem en t s : 

(1) A '.' ri tten or t e l ec;rephi c reo_uest for en opoort•1r i tv to be 

hear( must be fil ed. before noon Oi~ ·:·:ec3.ne 0.a'r, June 6, 19 r:5 4 , '."l ith t he Admini strator, ~oor'l 4.'215 , De·oc::.rtm ... m t of CoJ1me rc e Building , '::ashin.p; ton, D. C. 

( 2) Such r eou e st sha ll s t o.t e t he naJrJe of (a) anv ·oerson s::: eld ng to 

testify in the hec:ring , anc' (b ) t he ')ercors or e;roups \":hom he :re-p r esents -

( 3 ) At the Puolic Heer 2~~~ . all ·:; r~: onc:. e.::-e r egr.rded a s n i tnesses, 

and sha ll ~') esent ore. ll~r fccts onl v 0.nC. n ot .:u ~ent. !ri tten brief or 

arguments ma' ' be fi l_ed, out ora l. p:re2"ln t .'"1_t i ons rrill be confined to f a.ctua l 

statements only . 

( 4 ) I n the O.i s cre ti on of the De :Jn r Administrat or in cha r g e of the 

Hearing , persons \'rho hc:1.Ve not c om1Jlie (;_ r, i t h the reouiremen t s of yetragra:._Jh (1), ab ove, ma~r be -Je r mitt e(i_ ut c ny tif"l e ~J rior to the close of the 

Heari ng to file vritten sta t ements onta ~ ~roposals rela tive to t he 

matters hea rd the rein su pp orted by Jertinen t inf on-wt ion or argument. 

Such ~ritt en statements must be co O. e"1sec. a s much a s possible. 

Public Hearin.:;s are s o lely for L1e -,JuriJose of obtainin;o; in the most 

direct manner the f a cts useful to t h e Admi n i stra tor, a..nc_ no a r guments \7ill 

9811 
be hear d or consi dered a t .thi s time . ::.e -~"J sentr tion of interested .. "Jarti es by attorn e7s or specialists is ~e iF sible, Jut it is not to be regar ded as ecessa. . Inc ust:ty, uo r ke r s , 2nd t l1e cons 1mi:r ~ ··JubJ.i c n ill 

be renres ent c d by specia1

. adviso r s r~ ·J re d by the Government . 

---

l 1rl Dean ~a , HUGH .§. J OHN'SOF, 

Deputy Admini st r a.tor. A&n i ni strator. 

(N. B.: To Co de Auth orities and Tra de a n l' _I nC.ustri<? l As s ociations and 

' Ap,enci e s : 

6408 

9811 

Th e above conta i ns i.1o tice of :_oossi 1Jle action in r: .1ich 'our members 

o:c other ·oa rties knov.n to y o-... 1. rna~r b e vi ·~ r interested.. You are 

urgeG. t o exe rcise eve:;:>·r r ecS.son abl e e .r-:f ort to cause the subje ct 

matter to be ca l led to t~ ir ~tt nt on .) 
6014-A 

NATIONAL RECOVERY ADM IST~ATION 

Noti ce of Searing : Jo. 367-C 

Registry No. 236/1/01 

Approved Code No. 33 2. June 23, 1934. 

LADIES HAND BJi.G T iDUS'l::qY. 

WHEF.EAS, Section 1 of t!e Orde r of rla r ch 14, 1934, approving the 

Code of Fair Co..-,petit.ion for the Lad ies ii<md Bag Industry, p rovides: 

11 That Section 2 of Article IV b e sto.y ed un"Ji l such tioe n s the Code 

Aut' ori t y shall present to t he Adrnir.ci s tra tor a definition of the term 

1 semi-skilled employee 1 , wh i ch rece i v <.; s the approval of the Administrator"; 

and 

WHEREAS, A specia l comrn i t te e ar r oi n t e d from the Indus try and from 

Labor at t"hc Pub 1 ic Hearing held June 8, 1934 to rep ort a definition of 

the t e rm 11 semi-sY. i lled rnp lo~ree 11 , h as submit ted t wo reports as noted in 

Appendix A, attached hereto; and 

WHEREAS, Secti on 4 of Article VI of t he Code provides: 11 In order 

that the Code _itu t h':lri t. ,v shall at a} J time s be truly repre sen ta ti ve of 

the indu stry en l i il ~h er res? ects co~~ J with t he provisions of the Act, 

the Ad.n in1 '0 tratur WRY :-:rovicie suc}J E.a ri nl S as he may d eem proper, and 

may r 8quire an a1-- prorT·iate madifi ce.t i on in the method of selec tion of 

the Code Auth od ~·' ' ; ru1d 

WHEREAS, Se c t.;.o n 6 of Artic l e II p rov ides: 11 The Administrator may, 

upon reco m!"'eu da~ on by :;he Code Aut.hor :L t:r c;.nd. a fte r full study and investigation ·by the Cude Auth<Jrity, and. af:,er s-J.c:1. not ice and hearing as he 

shall prescribe , establj sh , as a part of t h is Code, such basic rates for 

the more skilled cl a s s es of err.p lo y ees s m:Jy be nec e ssary to further 

effectuate the purp oses of t he Act 11 ; and 

WHEREAS, The petitions of t h te~nati on l Pocketeook Workers' 

Union and a group of 68 rneml 3rs of t r1e T-r!d-..1.s try st a te tha t the Code Authority refu ses to make any r ecomrr.endat i on s ~. he reon; and 

WHEREAS, t h e Ldministra tor oe s a h earing necessary and p roper to 

determine the matt0rs ~er i~A~ove r e fe red to, an~ te m~ke any maciifications, e:1mendrne nts o1· add i ·dons ne.::e "sary in accord< nee with the p rovisions hereinarove set forth. And., in s cnedul e attached, as noted in 

Appendix A. 

NOT!J'E 1~ IIT)_·J3Y Q-IVEN that a Fub1 ic Hear ing wi ll be conducted by 

the Admi nistratvr , bog i !111 ing a t 10. 00 !\. VI . , Monday, Jul y 9, 1934, in 

the Rose Ro Jm, Wes:linc-. on Ho el , lnsni1 gton , D. C., and conti r.uing until 

completed. .PJ1 opp or b J.i. ty to be hear:i \ E". i tl er in pe r s::>n or by duly 

app ointed r ar.rese!1tat i ve ei r b~r an ear3.nr.e or hJr sending a written 

or telegraph ic statement) wi ll be gi ven to persons or g roups who c an 

show a substantial interest c:~s workers, employers, consumers, or otherwise, in the effect of this question. 

9811 
- 594-

Those wishing to be heard must comp ly with the following simple 

requirements: 

(1) A writt en or telegraphic reque st for an opportunity to be 

heard must. be fil::-d bef ore I:O()il on <Iay , Jul :v 7' 1934, with the 

Administr r, Room 4 215, Depar t mc r.. t of Commerce Buildi11g, Wa shington,D.C. 

(2) Such request shall state t ile n 0me of (a) any person seeking 

to testify in the Hearing, and (b) the pe rsons or groups whom he represents. 

(3) At the Public Hearings, 11 pe rsons are reg rded a s witnesses, 

and sh all p r esent or a lly f ac ts onl? an.d not argu111ent. Written briefs or 

arguments m'ly be filed, but oral pres ent a tions will be confined to factual 

· stat ement s only . 

(4) In the discretion of the Depu t y Administrator in charge of the 

HeRring, p ers ons who have not cOmj-; l i c d_ -,..;.:.th e requi rements of paragraph 

( 1) , above , may be pen ni t; te d at an;T ·c 1:ne p-ci c' r to the close of the Hearing · to file itt n statement s on in ing posa ls r e l a tive to the matters hear d. t:he in ~--n or t eC.. by p e:ci .. 1~ L t j nfo:i:mat ion or argument. Such 

written st a t emen ts must be conden se ;'. a s fllUCh as possible. 

Public He a:r ing s a r e sol ely f or the purpose of obtaining in the most 

direct manner t l: ... e f act.:; useful to the AdmL;. i stra tor, and no arguments 

will b e h eard or side d a t ~j3 t1me. rt epresentation of interested 

p artie s 7 a ttO j,'l1e;rs o: spe ~ialis -l.;s : .. s pe:-mi ssi rle , but it is not to be 

Tegarded as nec so. ~r. Ind:.:: s u7 , v·o;:kers. and t h e co nsuming public will 

be rep resent e d b~.~ sp e ci a l advis ers emp loyed by t he Government. 

Dean G. Eci r_ds_~ 

Deputy .A.dminis t:rator 

HTJSH S_! J OIDJSON 

drni 1 s t;:cator 

N. ].: To Cod e Auth oriti e s a nd Trade a nc1 I ndustrial Associations and 

A-"'enc i e~l.. 

The Rb ove cont ai ns not i ce of o ssi ' l e action in which your members 

or other pa s wn t o you may b e vit < lly interested. You are urged 

to exercise r~r rea sonabl e effort to C[!USe the subject matter to be 

called to their attention.) 

9811 
5~·S

DEFINITIONS OF SE!v;I-,,iGL1=D \' G::{K.F3S AGREED UFO _ BY BOTH 

Il':DUSTRY REFrtESE !TA~I VE S OF ~HE CO: 1 I SSION A.FFOINTED TO 

DEFI NE SEMI-SKI LLED WORKER 

*** 

TT il G 

All c~tting ope r at ions a re to be consi dered semi-skilled, excepting 

cutting pnpe r, r.r:c.i ng or r'ubber or 1 i_n]_:lf::' cloth, and excepting h a ndles, 

handle linings, pB: l er, puller linings, gus s ets a nC sr.:all trimmings 

that a re cut by lickers. 

*** 

DEFI TIT I ON OF OFEJATiliG 

All operating is to be co~sidered s emi- skilled, excepting linings, 

handles and pull ers, s ewi ng p,r d s ev'i nl; on 0: DRl1clle s and pullers , and 

se ling in lin ings into t he b egs for f~9 me purpo ses . • >!= X 

All workers e;:gPst.··.i L !>Dclcettoa}: .1l.::.ki ng by hand , a re considered 

semi-sk illod., ::-. c8 p·,~ G".:.::·ning L1 ha~ ~J. "' , ~uck s, loops or gussets, or 

hangL1g on :'lap-;, <1lsv xce .• i,:;_ng 81~ · .qb le work on linings. 

::"'* 

OF ~. :J- sK:r. :::tL D ~:~ ~R.Al r tD ==-=~=-=~~ __::= --- ---

All fr aming sn all be consider ed se~i -s il ed excepting all purses 

and fr ame pocke ts . 

*** 

DEFINITIO T ()F Siiv:I -SKILL.C:D I N FA::tiP} 

All wo.~.·k er s who do parirl£S on p arir,;; rr1.qchines who are c apable of 

making the necess al'J' cl:1anges of g o:u_g";, ';:: e and en::ery wheel on a paring 

machine sh a~ l be considered semi-ski ~eJ e x epting those who pare handles, 

tucks and ~~s ets . 

The Co1'1'Jrr.itt ea agrees t ha t no pe:sun s. a ll b e co n sidered semi-skilled 

on an? of t he tove or.era t ion s unless he: has bee n emr l o.re d on any operation for a period of six mo ~ s . 

STATEMENT Oi!' IP.!30R L':Qlf~ _SEI\<tl-SY1LLED .TORKERS 

o., 'iEE F0CL8~ 'I 00 _ r:1JvsrrRY" 

The under sig~e d, after having met in conference with the rep r esentative of th~ emploJe r s t o cl C:t ssify a .1d l~:'ine t'r~a semi-sk illed workRr s in 

the industry , a~e given due cons id~ ation to the subj nc t matter before 

them. Our conclusions , b ased on man.;.- .'oar s in t h e industry, are as 

follows : 

9811 
- 596-

Definiti~n of Cutting 

All cutting op erations are sk ill ed ~nd semi-skilled operations. 

Four outstanding manufacturers of the indu str y have agreed in a previous 

discussion on the venr srune subject t o t he fo llowing: 

11 All cutting operations, excepting pape· , W:=!dd i ng and 

rub-oer cloth cu ttilg, ar e t o 1';.:; cv:1sidered semi-skilled. 11 

The follo wing com':""i ttee memb8rs he1•; e signed their names to t his 

definition: I. Schoenholt.z, Chfls . Wolf, S. Maksik and A. Greenbaum. 

We dispute the excep tion s to paper wndding and rubber cloth cutting, 

and ask t h8 t they be included a s skille d and semi-skilled operations. 

Definition of ~erating 

All operating on outside work , li nings, handles, pullers, etc., 

must be consider ed skilled or semi-skilled. oper a tions. 

The four above mentioned employers ha ve gone on record with the Code 

Authority for t he Ladies 1 Hnndbn.g Ind.ustr;r on t he question of defining 

the semi-skilled oper At ions in the ope rating brach of the trade as follows: 

"All outside opernt ing shall be considered s emi-skilled except 

han<iles . 11 

The undersigned, represent a tive s of labor, c nnnot make it too emphatic t ha t opera tors on l1an<i l es have lwE~y s been considered ~n the New 

York marke t on an equ a l par with all other opera tors, because operating 

on handles requires skill, ab ility, o ed~e and experience. Phe handle 

is one of the most impo rt8nt part s of t he entire bag. Women will first 

detect defective oper a ting on handles. We ask that operators on handles 

be treated on an equal par wi t h a ll other ope r ato rs. 

The same must be sa i d about lining oper a tors. 

Definition of Semi-Ski lled on Frnm:!Jlg 

Our definition for labor as f ar as framing is concerned is as 

follows: 

All framing snall be co nsi dered skille d and semi-skilled. 

A committee or representative manufac t ure rs consisting of I. Schoenholtz, ChCJs . Wo lf, .S. M11ks ik anc1 A. Greenbaum, on R previous occ a sion 

defined framing a s fol l ows: 

11 .All frami ng shall be consider ed semi-skilled excepting all 

pur s~ s not all ·purses not a tt ached t o fr ames . 

Definition of Semi-Skilled Ope r atio ns in Focketbookmaking 

Our definition for labor on semi-s ill ed opera tions in pocketbook 

making is: All workers engn.ged in pocke tbo0k making are to be considered 

skilled and semi-skilled. 

9811 
- 5::'7-

The above mentioned four em· Jo:re :" s have defined semi-skilled 

operations in the pockstboo~ ak1ng ~l Lc~ of the tr ade as follows: 

11 All 'Tip o~r2es c ngf'ge in P'Y· ~~ cb0o.K !tlak~:r..~ are to be considered 

s en i -- cki ll::od , cx-::ept t 1Jr.'1L t in handles, tucks or loops, and 

all table work on lini;1e:;s. 11 

We know from our own e xperi ence , n.nd tLe employers in the City of 

New Ycrk have c.J.wnys cc 7J. ced8rl thai. t ·...u·nj .:lg in h .<mdles, tucks, or loops, 

also tabla v·o rl: 0:1 li ~::~ gs, are ski. l.Ls o. oper'l.tt0ns wh ich for y ears have 

been perfo -:-- r1 ed by ski 1 lect }J uc~:::-t iY' ..:. ~: ers an'i c l as slf ied helpe rs 

( clF.tssif\ed. helpe:t.'s h2ve a ! ,. f\,' 8 :::· ce~ VC'•1 a YJ d a re receiving today a 

minimum wage of :10 l ess thc=111 .$23 . 3 1 r: er w<.:' e k). 

Our defini t ion for labor on the paring branch of the industry is as 

follov.rs: All errrt1loyee s enea -..; ed in r [ Y:i. ;' SKiving, splitting or edging, 

are skilled, or to a~' the lea st, :; .i.-sh:..~.l led. op erations. 

Messrs. I. Scho ennoltz, Chas . ~.'r:· , S. Maksik and A. Greenbaum, 

four of the outs +.c.E-1.l··ig rnanuf a c u.re ~· s oJ.' our indus try have actually 

agree d to this dr:i'in:... i ~e n. Ne q-......c te f .:· om the e~o rt submit ted by Mr. 

I. Sctoe:rbo J.tz. ·~J.a~r .an of 't hCc cic.rrn'littee, to the Code Authority of the 

Ladies 1 Ea11obaG L . d1.1 3 ~ r:-, to wit: 

11 All employees e :ng.qged in paring (meaning sometimes skiving) shall 

be consi <'la1·ed semi-skilled. 11 

The 1L.'1dersign ed labor rep re s::"' :!l.t < t i ·e s of tile committee are at a 

loss to u:--de rsi"CJ.nd. wh:,r the t ""R0 q:rP.~enta ives, .~ essrs. Goldsmith and 

A. Greenbnu.rr:, parti cuJ,q_rly th8 l ,qt ter , sr_ou.J.d h:we g one b ack on the 

definition o f the pre-vious C0HJm i t te e c r' y, ' ,..,rr.p lo:r .rs , of which Mr. 

A. G-~ee ;1baura w~ F a mer,1'.:··--::' , a nci att E- o t, c Lis ,1 · rre to ~1e d ef'i ni tions of 

the pre·ljou.s r 8:p8rt. 'Ilt.; -. .::;c rDJ ittse cf ~al:.cl l on preyi,:-,·..:.s O(;ca sion was 

not satisfied 'rrith t he rl r;L:njt 1 of .:-~ :. :'>::mnittee of four employers 

which cor1s ti tuted. the rra j cri t ;r ~ nwn of the emp lo yers of the indus try, 

and we demand th3t ju ~t1ce be C.on<S i;f) ·,:he skilled workers of the industry 

who, becc;-c:.3e of c:ircu.."!:s'tbnc r·, b a v:-' 1E ::-n n1c:kn :1med semi-skilled wo rkers 

for the sole pu:-p~se 0£ rr;aintain~ :·: s p_:-s ·:md.c..rd conditions in rn<my shops 

of the t_nd1lst :[)Z, and .F or t h e further- purpose of pe rpetuating unfa ir labor 

competition in the trade . 

We know from our own exrcrier.c e as v1o rkers of the industry for over 

twenty years, tha t a cut ter , ope:r g tor , v,cketbook maker, fr ame r, parer, 

etc., afte:t hav i ~1 g had experiGnc8 'i .•' t1.1i :r t ;v dC1JS t o t wo months, considering t~ w pr a.:>ent moQ erniz e d a"ld. ef1' .:.. -:: 1emt met hods of production, is 

entitled t.o be clpssifie d a t lea Jt , s a sr:;mi-ski lled worker and justified to the minimLm scale of 45~ p e r hour provided for in the Code of 

Fair Competition for the Ladies Handbag industry. 

9811 

NOTICE OF tiEARI:·JG 367-D IS OUT OF STOCK 
- 600-

I N D :E X ------

9811 
- 601-

I N D E X ----

Pages 

Accounting aJ?.cl .Price Provisions ........ ; ....... ~ .... .-:............. 91 

Accounting System . . . . . . . . . . . . . . . ................................ . 91 

Administration of Code .......................................... . 67 

Administratio~ Hembe.r-s- ............•........ · ............ ·;......... 52,55-102 

Cl1anges 1n • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . • • . . . . • • • 52 

Reports ........ · ..... ................ -............ ·. . . . . . . . . . . . . . . Exlli bit N 

Exllibit U 

Administrative Code Provisions ................................... 90 

Administrative Order X-36 . . • . . .. .. .. .. .. . .. . .. .. .. . . . . . . .. .. . .. . • 65 

Terminatiop of. Paragraph 3 • • . • .. . . . .. . . . . . . . . . . . . . . . • . . • . • . . . . 65 

Administrative Orders, List of .............................. Exllibit Fl 

Administrative Orders, 11 0th$r 11 •• ••••• •• •• • • •• • •• ••• •• • • • • • • • • • ••• 65 

Effect of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 

Administrative Price Policy...................................... 91 

Administrative Provisions........................................ 90 

Ad vi sorJr Boards • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 

Personnel . ~ .... ~ ......... _ ..................... ·. . . . . . . . . . . . . . . . 101 

Agencies of Code .Authority •.................... · .. · .. ·. . . . . . . . . . . . . . 58 

Aides .......... • .. _ ............................... · ... ·.·.-................ 101 

Amendments ................................................ ·..... Exhibit L 

A.pprentices and Learne;rs •... ... .. ~ ........... ·..................... 88 

Approval 

of By-La~s '! ·· . .• . . • • • . .• .• . . . ................................. 80 

of Code .... · ............................. ~ ..... ~ ~ ·. -. ... ~ . . . . ·. : . . . . . 40 

of Code Au tho ri ~r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 

Assessments .......... ~ ............. , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 

Methods of . Cqlle~tion •..•.......... , ........ •: ... ; .. ; ;;;; .• ~ 64 

Proportion Collected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 

Success or Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 

Voluntary or Ma nda tory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 

9811 
-602-

Assistant Deputy Administrators • . . . . . . . . . . . . . . • . . . . . . . . . . . • • . . • • . 101 

Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . 14 

Officers of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 

(See also 11 Sp o.nsoring Organization") 

Budgets 

As Submit ted and Approved. . . . . . . . . . . . . . . . . . . . . . . . . . . • . • . • • . • • 64 

Periods Covered By ••........... ·...•... . • . . . . . . . . . . . . • . • • . . . • 64 

Budgets and Bases of Assessment •......... .... ....•.. · ... 63·, Exhibits F,Y 

Bulletins Code Autho rity •...........................•........ Exhibit C 

By-laws ................................................. . 78, Exhibit Dl 

Approval Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 

Approval, Step s in Ob t a ining • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 79 

Capital, Aggregat e I nvested • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 7 

Child Labor Provision • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 

Class A Trade Pract ice s .......................................... 92 

Class B Trade Practices 95 

Class e s of Industr;y I!Icmb e rs ••.............................• 6, Exhibit B 

Classification of Worke rs ••......•........................... Exhibit J 

Classification of Cu stome rs . . . . . . . . . • . . . . . . ... . . . . . . . . . . . . . . . . . . . • 91 

Code Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 

Ad.min~ tration of t he Cocle •..•................... ·..........• 45 

.Am end.men·t s • . . . • . . . • . . . . . . . . . . . . . . . . . • . . • . . . • . . . . . . • . . . . • • . . . 67 

]ud.gets and :Base s of Assess:nent • . . . . • . . • . . . . . . . . . . . . . . . . . . • • 63 

Genere..l :celi mi nar~r Discussion • . . . . . . . . . . . . . • . • . . . . . . .. .. . . • 45 

GG~e al Success or Lack of Success .......................... 61 

Organiza tion ........................................ :. . . . . . . 51 

Code Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 

Conditions ~n Order of ......•. ·.•................... . ........ 40 

Date of .... _ .. . . . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 40 

9811 
Code Autho r ity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . 54 

Agencies . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 

As Industr - Gove r n i ng Body • . . . . . . . . . . . . . . . • . . . • . . . . . • . . . . • . 61 

Assessment Co l l ection Ne thods . ... ... . . . . . .. . . ... .. .. . . . . . . . 64 

By-LaTis , or Rul es and Regul a tions ..... . .... .. .............. 78 

Chang es in ................. . .... . . . . ·. . . . . . . . . . . . . . . . . . . . . . . . 58 

Date of Sel ection , and. He t hocl. • • . . . . . . . • . • . . . . . . . . . . . . . . . . . • 52 

Fi eld Orgc=tni za tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 

Financial Operati ons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 

Pe r sonnel ........ .. ............. . ....... . ........... 54 , Exhibit T 

Re cogr1i t i on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 

' 

Co de Comm ittee • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 

Code Fo rr:::tul. 2..ti on • .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

Ear l y Confe r ences and _.,. egotia tions . . . . . . . . . . . . . . . . . . . . . . . • . 21 

Hearing s ....................... . ............... . . . . 23 , EXJ..'libit Gl 

.rTon- Sp onso ring Or gani zations • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 20 

Officers , Co de Conn i ttees, Int eres t~ d Gr oups • . . . . . . . . . . . . . . 20 

Code , Printed (App rove d_) •..••........ . ..... . . . .... .. :!? r e c eding Exhibits 

Code Provisions 

Changes During Fi na l Dr afting ........ . .. . ..... . ............ 39 

Opera t ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 

Undesi r able or Unenforceabl e ............. . ........ . .. . ..... 98 

(See als o "Op er at i on of Code Pr ovis i ons") 

Code Revision ................. .................... . ' ... .. ...... . 39 

Codes, Dra fts of ...•........ . ............................ . . .. Exhibit A 

Coll e ction of Sta tistics • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 90 

Compliance 

Definit i ons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 

Hour s .. . .......... . ........ ·. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 

RecomTTJ. enCta t ions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 6 

Trade Pra c t ices ••.. . .. .. ............ .. ·. . ......•...•..•....• 92 

Wages • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . • • . • • . . . • • • • • 83 

Virg inia Art Good-s Co . · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibi t V 

Have r hil l , Mass ., -~ me Vlo r k ......... . .................. Exhibit X 

9811 
Compliance Division, 3.eports of ............................ Exhibit R 

Concerns, rumber of ......... . ............................ . 6 

Conditions in Order of Approval .. . ....................... . 40 

Confidential Agency . . . . . . . ......................... 58 

Consolidations, Possible Code .................................. 98 

Consumers 1 Advisory Board ••.........•....................•..... 101 

Cooperatives ............................................... 92 

Cost System ....................... ...... . ............. 90' Exhibit P 

Definition of Industry 

.Amendinents ••. 

Evolution 

Operation 

. . 

• • 

... 

. . . . . . 

. . 

. . . 2 

67 

2 

3 

Definition of Industry I!ernber .................................. 4 

Deputy Admini stra tors .•........................................ 101 

Differentia ls . . . f!age •...•. 

Meeker Co. . .. 

.. . . 86 

86 

. .•. Exhibit W 

Discounts, Brief on ........................................ . Exhibit H 

Di vi sian Admi:li stra tors ........................................ 101 

Drafts of Codes ............. ' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit A 

Emergency Price Eases . · . .• ............................. . 91 

Employees, .Aggregate Number of .• ................ . 7 

Executive Order 6205-B, Pro.t.e.sts Filed under •. . ..... .43, Exhibit M 

9811 
-6C5-

Exemptions ....................................................... 75 

Factory, Wage-Earners, Number of.................................. 7 

Female Employ ees • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • • 11 

Field. Organization of Code Authority • • . • . . . .. .. . .. . .. . .. . .. .. . .. . 58 

Final-Draft Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 25 

Financial Operations of Code Au t ho ri t y •.............•.. ·. . . . . . . • . • 64 

First-Draft Code to Pu0J.ic Hearing 21 

General Information .............................................. 2 

Geogra:9hical Di stri but ion of I:nd.ustry 9 

Handicapped Persons .............................................. 87 

Hazardous Occupa tions • • . . . . . . . . . . . . . . . . . . • . . . . . • . . . . . . . . . . . . . . . . • 87 

Hedge Clause .. -.......... ·. . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . 96 

History Outline by A. i:Iittenthal ••........•..•..............• Ex..'l1.ibit G 

Home Workers •........ ~ .. ~: ~ : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87, Exhibit 0 

Hours Provisions .................................................. 85 

Cohlpliance .............................................. Exhibit R 

Industrial Advisory Boa rd ................ ~ , ' .................... . 102 

9811 
Industry 

Compliance ••.••. 

Definition of ••. 

Reaction to Co de AP:)roval 

Statistics of •..•......... 

"-606-

.... .... 

Industry Hember, Definition of .......... .......................... 

Indus try I.Iemoers , Classes of ........................... 

Insignia. ...... .................................................... 

84 

2 

43 

6 

4 

6 

85 

Interpretations .................. ........................ 74, Exhibit S 

Investigation of Re co rds . . . . . . . . . . . ............................. 

Labels ...... ....... . ........................... .... . 

Labor Advisory Boarcts .. . ............................... . 

Labor Co11pl a irrts Cor';.;n i ttee ..................... ... ...... 77, Exhibit 

. .. 

Labor Provisions 

Miscellaneous 

Posting · ••..... 

(See also 11Hours 11 and 11Viage s ") 

Learners end Ap:)rentices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Legal Division •...•••... 

Limitation on Production, IIachin.ery , Shifts, e tc. 

Liquidate·d Damages • • • • • . . . . . . . .. 

.... 

..... 

. .... 

........ ... .. 

Miscellaneous Labor Provisions .................................... 

9811 

90 

66 

101 

Cl 

89 

85 

88 

101 

98 

90 

89 
- 607-

!Jon- sponsoring Organizations •... . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .... . 

Operation of Code Provisions ••.................................... 

Accounting and Price •.•.................... . ... . .. . .......... 

Administrative............. . ............................. . 

Definitions ................. ... ............................. . 

HoL,_rs •• • .•..•...•••.•..•.•.• -· ................................ . 

Labor, other than Hours d Wages •..... . . 

Trade Practices· ....... .. ... .. ... ~ .... ... .. ~ .... . .. . . . . . . 1 ages . . . . . . . ... . . .. .. .. .. . ..... ,........... ......... , ............. · .• .• ... . 

Order of J\ppToval . · ....... ·· .. . . . . . . . .. . . . . . . . ·• ...... . .· .. 

Overlapp ing De·fin-i tions .... ..................... ' .. ... ' ................. . 

Peak Periods • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0 •••••••••••••••••••••••• 

Personnel 

Administration 

Code Authori r 

.... .................. ......................... . . . . . . . . . . . . .............. . 

Post-Hearin~ Conferenc ····~· .. . . . . . . . . . . . . . . . . . • ... ...... ....... . 

Posting of LPbor Pr vi io s ••......... . ... 

Pre-Hea ring Conferences and r egotiations ............ 

Price and Accountine Provisions .......... 

Price Differentials ••••••••••••• ' •• It •• ! 

Price ~i ling ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Pages 

18 

82 

90 

90 

82 

85 

86 

92 

83 

40 

82 

86 

101 

54 

25 

85 

14 

90 

91 

91 

Price Policy, Administrative ...•... Exhibit Z 

Primar Material Sources .. ...... . .. ............ ... ....... .... ........ 2 

Principai Products· .. ........................................ .... .. ...... 4 

Printed Cod_e ........................... . ......... .. . Preceding Exhibits 

9811 
.-

- 608-

P roc"':.uc tion Capac i t y , Aggr egat e . . . . . .. .. . . . . .. . . .. . . . . . . . . . . . . . . . .. 6 

Pr ociuction , Limi tation On . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . • • 98 

Produc ts Under Ot her Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . • 4 

Prop orti or;. of Assessment s Col lected. • . . • . . . . . . . • . . . . . . • . . . . . . . . • . . . 66 

P ro test s Un der E;:e cu tive Orde r 6205- B . • . • . . . . . . . . . . . . . . • . . . . . . . . • • 43 

Pub-l ic nearing .(s) .on Code •••.... . ....... . · .·.. • ..••.•........••...•. 23 

Da t e & • • • • . • • • • . • • . • • • • • . • • • • • . • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 23 

Pe r s onne l . .. . .. .. .. . . . . . . . . . ..... . . . . . . . . . . .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . 23 

Results ................................................ ... t ••••• • • • • • • • • • • • • • • • • • • • 24 

Public ·Heari:r1gs t o .A:pni'ova l .. , .. .. .. .. ... ........... .... ... ..... .. ........... . 

· · ·Ac tivit::. e s During Fi nal Dr8.f :~,D.c:; of _Qqde • ...................• 

Assent of I nd.ust ry t o Coo.e ••.. .... ......... ." ..•. · .· .·: .· .. . .....• 

·Changes. in .Code .p rovisions . dl;t.:r:\.ng }fL ~~ !:<?- :f~~n~ ••.....•..... 

Post-Hearing Confer ences •....•. . .•.... . .......•.............• 

. . . ...... . 

Re commEmda tion s 

Complia:1c e 

•. . .. .. ..• . ..... .~·•• .! 1''~· ~· ·:··· ··· ······ ·· 

,r.ri t h Code ... . . .. ........................... . ..... . 

Limi ta.t ion on Proclu ction , Ha ch i ne r y , Shifts , e tc. . ..........• 

Po s·s-i ble Co de· CDnsol.ida t i mlJ3 ..•.•.. . • .. . • ... . · ......•.............. 

Und:esira b1e o-r U.n c nf .o:rc.eabl e. Pr .ov.i.s.i ons .. • •... , ..... .. .... . ...• 

Rei e r ences ·· .·.· ........... ....... . ....... .. ... ....... . · ..... . .... .. . . ........ . 

25 

25 

43 

40 

28 

96 

98 

98 

98 

98 

2 

Re s earch ·and ·Planning -Division .•••...... .. _... . . . . . . . . . . . . . . . . . . . . . . . . 101 

Rep orts ........ .. ...... . .................. .. ......... . ... Exhibit E 

Exhi b it P 

Sa l es .......... ... ................................................ . 7 

• • • • • ~ • • f • 

Sal esmen ........ .. ... . ......... . ... . . . .. .. .. . ... .. .. . ......... Ex_hi bit El 

Semi-Skilled, Rep o r t on • . • . . . • . . . . . . . . . . . . . . . . . . . . . . • . . . . • . . • Exhibit K 

~ . ~ . . . . . .. . . . 

9811 
- t-09-

Page 

Skilled Wages .•........................................... 84, Exhibit L 

Sponsoring Organizations • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

Name, Age ano. Objective .. .. . .. . .. .. . .. .. . .. .. .. . .. . . .. .. . . .. 14 

Officers, Code Committees, Inte rested Groups................ 17 

Representativene ss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 

Statistics of Industry ••.................................. 6, Exhibit F 

Capital, .Aggre ~ate I nvested • . • . . . . . . . . . . . . . . • . • . . . . . • . . . . . . . 6 

Concerns, Nlli-r. ber of . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 6 

Employees , Aggregate Numbe r of .. . • .. .. . .. . .. . . . .. . .. . • . .. .. • 8 

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

Stays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 

Stop-Loss Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 

Style Piracy Brief ........................................... Exhibit Q, 

Termination of c:>.rag a~)h 3, Ad..Tl'} i n i str ative Order JC-36 • • . . . . . . . . . . 65 

Terms of Payment ......................................... 64, Exhibit H 

Tolerances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 

Trade Associations............................................... 14 

Trade Practice Comn laints Com:r.1 ittee and Plan .••... . ..... 7 6 , Exhibit Bl 

Trade Practices 

Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 

Class B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 

Undesirable or Unenforceable Provisions • . . . . . . . . . . . • . . . . . . . . . . . . • 98 

Units Prod1:cec1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 

Virgini8 . .Art Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit Al 

Wage Differentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 

Wages • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 

Adjustment above 1 Iinimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 84 

I ndus li ~r Comp lia nce • • . . . . . . . . . . . . . . . . . . . . . . . . . . • . . • . . . . . . . . . • 84 

Malad ,ustmen t with Other I ndustries • . . . . . . . . . . . . • . . . . . . . . . • . • 84 

Skil led . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 

Waiting Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 

Women :Elnployees • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 11 

9811 # 

OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION 

THE DIVISION OF REVIEW 

THE WORK OF THE DIVISION OF REVIEW 

Executive Order No. 7075, dated June 15, 1935, established the Division of Review of ~he 

National Recovery Administration. The pertinent part of the Executive Order reads thus : 

The Division of Review shall assemble, analyze, and report upon the statistical 

information and records of experience of the operations of the various trades and 

industries heretofore subject to codes of fair competition, shall study the effects of such codes upon trade, industrial and labor conditions in general, and 

other related matters, shall make available for the protection and promotion of 

the public interest an adequate review of the effects of the Administration of 

Title I of the National Industrial Recovery Act, and the principles and policies 

put into effect thereunder, and shall otherwise aid the President in carrying out 

his functions under the said Title. I hereby appoint Leon C. Marshall, Director of 

the Division of Review. 

The study sections set up in the Division of Review covered these areas: industry 

studies, foreign trade studies, labor studies, trade practice studies, statistical studies, 

legal studies, administration studies, miscellaneous studies, and the writing of code histories. The materials which were produced by these sections are indicated below. 

Except for the Code Histories, all items mentioned below are scheduled to be in mimeographed form by April l, 1936. 

THE CODE HISTORIES 

The Code Histories are documented accounts of the formation and administration of the 

codes. They contain the definition of the industry and the principal products thereof; the 

classes of members in the industry; the history of code formation including an accou~t of the 

sponsoring organizations, the conferences, negotiations and hearings which were held, and 

the activities in connection with obtaining approval of the code ; the history of the administration of the code, covering the organization and operation of the code authority. 

the difficulties encountered in administration, the extent of compliance or non-compliance, 

and the general success or lack of success of the code; and an analysis of the operation of 

code provisions dealing with wages, hours, trade practices, and other provisions. These 

and other matters are canvassed not only in terms of the materials to he found in the files, 

out also in terms of the experiences of the deputies and others concerned with code formation 

and administration. 

The Code Histories, (including histories of certain NRA units or agencies) are not 

mimeographed. They are to be turned over to the Department of Commerce in typewritten form. 

All told, approximately eight hundred and fifty (850) histories will be completed. This 

number includes all of the approved codes and some of the unapproved codes. (In ~ork 

Materials No . 18, Contents of Code Histries, will be found the outline which governed 

the preparation of Code Histories.) 

(In the case of all approved codes and also in the case of some codes not carried to 

final approval, there are in NRA files further materials on industries. Particularly worthy 

of mention are the Volumes I, II and III which constitute the material officially submitted 

to the President in support of the recommendation for approval of each code. These voLumes 

9768- -1. 

-11-

set forth the origination of the code, the sponsoring group, the evidence advanced to support the proposal, the report of the Division of Research and Planning on the industry, the 

recommendations of the various Advisory Boards, certain types of official correspondence, 

the transcript of the formal hearing, and other pertinent matter. There is also much official information relating to amendments, interpretations, exemptions, and other rulings. The 

materials mentioned in this paragraph were of course not a part of the work of the Division 

of Review.) 

THE WORK MATERIALS SERIES 

In the work of the Division of Review a considerable number of studies and compilations 

of data (other than those noted below in the Evidence Studies Series and the Statistical 

Material Series) have been made. These are listed below, grouped according to the character of the material. (In !'{Q,tls. rtfatffili§ hQ. l:L. Tentative Qutlines and fu!mmari~ Qf 

Studies in Proc~, these materials are fully described). 

Automobile Industry, An Economic Survey of 

Situminous Coal Industry under Free Competition and Code Regulation, Economic Survey of 

Electrical Manufacturing Industry, The 

Fertilizer Industry, The 

Fishery Industry and the Fishery Codes 

Fishermen and Fishing Craft, Earnings of 

Foreign Trade under the National Industrial Recovery Act 

Part A - Competitive Position of the United States in International Trade 1927-29 through 

1934. 

Part B - Section 3 (e) of NIRA and its administration. 

Part C - Imports and Importing under NRA Codes. 

Part D- Exports and Exporting under NRA Codes. 

Forest Products Industries, Foreign Trade Study of the 

Iron and Steel Industry, The 

Knitting Industries, The 

Leather and Shoe Industries, The 

Lumber and Timber Products Industry, Economic Problems of the 

Men's Clothing Industry, The 

Millinery Industry, The 

Motion Picture Industry, The 

Migration of Industry, The: The Shift of Twenty-Five Needle Trades From New York State, 

1926 to 1934 

National Labor Income by Months, 1929-35 

Paper Industry, The 

Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Transportation, January 1923, to date 

Retail Trades Study, The 

Rubber Industry Study, The 

Textile Industry in the United Kingdom, France, Germany, Italy, and Japan 

Textile Yarns and Fabrics 

Tobacco Industry, The 

Wholesale Trades Study, The 

Women's Neckwear and Sc~rf Industry, Financial and Labor Data on 

9768-2 

- iii -

Women 's Apparel Industry, Some Aspects of the 

Co ~~odities , Infor~ation Concerning : A Study of NRA and Related Experiences in Control 

Distribution, Manufacturers' Control of: Trade Practice Provisions in Selected KRA Codes 

Distributive Relations in the Asbestos Industry 

Design Piracy: The ProbJem and Its Treatment Under NRA Codes 

Electrical Mfg. Industry: Price Filing Study 

Fertilizer Industry: Price Filing Study 

Geographi cal Price Relations Under Codes of Fair Competition , Contrvl of 

Minimum Price Regulation Under Codes of Fair Competition 

Multiple Basing Point System in the Lime Industry: Operation of the 

Price Control in the Coffee Industry 

Price Filing Under NRA Codes 

Produc tion Control in the Ice Industry 

Production Control, Case Studies in 

Res ale Price Main tenan ce Legislation in the United States 

Retail Pr~ce Cutting, Restriction of, with special Emphasis on The Drug Industry . 

Trade Practice Rules of The Federal Trade Commission (1914-1936); A classification for 

co~parison with Trade Practice Provisions of NRA Codes. 

Cap and Cloth Hat Industry, Commission Report on Wage Differentials in 

Earnings in Selected Manufacturing Indus:ries, by States, 1933-35 

Emp loyment, Pa~rrolls, Hours, and Wages in 115 Selected Code Industries 1933-35 

Fur Manufacturing, Commission Report on Wages and Hours in 

Hours and Wage s in American Industry 

Labor Program Under the National Industrial Recovery Act, The 

Part A. Introduction 

Part B. Control of Hours and Reemployment 

Part C. Control of Wages 

Part D. Control of Other Conditions of Zmployment 

Part E. Sec tion 7(a ) of the Recovery Act 

Mat erials in the Field of Industrial Relations 

PRA Census of Employment, June, October, 1933 

Pue rto Rico Needlework, Homeworkers Survey 

Administratiy~ Studi~ 

Administrati?e and Legal Aspects of Sta~s, Exemptions and Exceptions, Code Amendments, Co nditional Orders of Approval 

Administrative Interpretations of NRA Codes 

Admin istrative Law and Procedure under the NIRA 

Agreements Under Sections 4(a) and 7(b) of the NIRA 

Approve Codes in Industry Groups, Classification of 

Basi c Code, the -- (Administrative Order X-61) 

Code Authorities and Their Part in the Administration of the NIRA 

Part A. Introduction 

Part B. Na ture, Composition and Organization of Code Authorities 

9768--2. 

- iv -

Part C. Activities of the Code Authorities 

Pa rt D. Code Authority Finances 

Pa rt E. Summary and Evaluation 

Code Compliance Activitie s of the NRA 

Code Making Program of the NRA in the Territories, The 

Code Provisicns and Related Subjects, Poli cy Statements Concerni 

Content of NIRA Administrative Legislqtion 

Pa rt A. Executive ~nd Administr~tlve Orders 

Part B. Labor Provisions in the Codes 

Part C. Trade Practice Provisions in the Codes 

Pa rt D. Administrative Provisions in the Codes 

Part E. Agreements under Sections 4(a) and 7(b) 

Pa rt F. A Type Case: The Cotton Textile Code 

Labals Unde r NRA , A Study of 

Model Code and Model Provisions for Codes, Development of 

National Recovery Administration, The : A Review of its Organization and Activities 

NRA Insignia 

President's Reemployment Agre ement , The 

President's Reemployment Agre ement, Substitutions in Connection with the 

Prison Labor Problem under NRA and the Prison Compact, The 

Problems of Administ ra tion in the Overlapping of Code Definitions of Industries and Trades, 

Multiple Code Coverage, Classifying Individual Members of Industries and Trades 

Rela tionship of NRA to Government Contracts and Contracts Involving the Use of Government 

Funds 

Rel ationship of NRA with States and Municipalities 

Sheltered Workshops Under NRA 

Uncodified Industries: A Study of Factors Limi ting the Code Making Program 

Ant i-Trust Laws and Unfair Competition 

Col lective Bargaining Agreements , the Right of Individual Employees t o Enforce 

Commerce Clause, Federal Regulation of t he Employer-Employee Relationship Under the 

Delegation of Powe r, Certain Phases of the Principle of, with Reference to Federal Industrial 

Re gulatory Legislation 

Enforcement, Extra-Judi ci al Methods of 

Federal Regulation through the Joint Employment of the Power of Taxat ion and the Spending 

Po wer 

Government Contract Pro visions as a Means ~f Establishing Proper Economic Standards, Legal 

Memorandum on Possibility of 

Industrial Relations in Australia, Regulatio n of 

Intrastate Activitie~ Which so Affect Interstate Cgmmerce as to Bring them Under Lh~ Commerce Clause, Cases on 

Legisla tive Possibilities of the State Constitut ions 

Post Office ~nd Post Road Power-- Can it be Used as a Means of f ederal Industrial Reg~la

tion? 

State Re~overy Legislation in Aid )f Feder~l Recove ry Legislation History and Analysi3 

Tariff Rates to Secure Proper t~nda rds of W~ges and Hours, the Possibility vf ariati~n in 

Trade Practi ces and the Anti-Trust Laws 

Treaty Making Power of the U~ited Sta tes 

War Powe r, Can it be Used as a Means of Federal Regulation of Child Labvr 

9768--4. 

- v -

The Evidence Studies were ori ginally undert aken to gather material for pending c~urt 

cases . After the Schechter decision the project was continued i n order to assemble data for 

use in connection with the studies c f the Division of Review. The data are particul a rly 

concerned with the nature, size and operations of the industry; and with the re a tion of the 

industry to interstate commerce . The industries covered by the Evidence Studies a ccount for 

more than one-ha:f of the total numbe r of workers under codes . The list of those studies 

follows: 

Automobile Manufacturing Industry 

Automotive Parts and Equipment Industry 

Baking I ndustry 

Boot and Shoe Manufacturing Industry 

Bottled Soft Drink Industry 

Builders' Supplies Industry 

Canning Industry 

Chemi cal Manufacturing Industry 

Cigar Manufacturing Industry 

Coat dnd Suit Industry 

Construction Industry 

Cotton Garment Industry 

Dress Manufacturing Industry 

Electrical Contracting Industry 

Elect~ical Manufacturing Industry 

Fabricated Metal Products Mfg. and Metal Finishing and Metal Coating Industry 

Fishery Indu~try 

Furniture Manufacturing Industry 

General Contractors Industry 

Graphic Arts Industry 

Gray Iron Foundry Industry 

Hosiery Industry 

Infant's and Children's Wear Industry 

Iron and Steel Industry 

Lea ther Industry 

Lumber and Timber Products In~us ry 

Mason Contractors Industry 

Men's Clo thi ng Industry 

Motion Picture Industry 

Motor Vehicle Retaili~g Trade 

Needlewo rk Industry of Puerto Rico 

Painting and Paperhanging Industry 

Photo Engraving Industry 

Plumbing Contracting Industry 

Retail Lumber Industry 

Retail Trade Industry 

Retail Tire and Battery Trade Industry 

Rubber Manufacturing Industry 

Rubber Tire Manufacturing Industry 

Shipbuilding Industry 

Silk Textile Industry 

Structural Clay Products Industry 

Throwing Industry 

Trucking Industry 

Waste Materials Industry 

Wholesale and Retail Food Industry 

Wholesale Fresh Fruit and Vegetable Industry 

Wool Textile Industry 

THE STATISTICAL MATERIALS SERIES 

This series is supplementa ry to the Evidence Studies Series. The reports include data 

on establishments, firms, employment , Payrolls, wages, hours, production capacities, shipments, sales, consumption, stocks, p rices, ~aterial costs, failures, exports and imports. 

They also include notes on the principal qual i fications that should be observed in using the 

data, the technical methods employed, and the applicability of the material to the study of 

the industries r.oncerned. The following numbe rs appear in the series: 

9768--5. 

Asphalt Shingle and Roofing Industry 

Business Furniture 

Candy Manufacturing Industry 

Carpet and Rug Industry 

Cement Industry 

Cleaning and Dyeing Trade 

Coffee Industry 

Copper and Brass ~ill Products Industry 

Cotton Textile Industry 

Electrical Manufacturing Industry 

vi 

Fertilizer Indus t ry 

Funeral Supply Industry 

Glass Containe r Industry 

Ice Manufacturing Industry 

Knitted Outerwear Indvstry 

Paint, Varni5h, and Lacquer, Mfg. Industry 

Plumbing Fixtures Industry 

Rayon and Synthetic Ya rn Producing Industry 

Salt Producing Industr y 

THE COVERAGE 

~he original, and approved, plan of the Division of Review cont emplated resources sufficient (a) to prepare some 1200 histories of codes and NRA units or agencies, (b) to conso1 · date and index the NRA files containing some 40,000,000 pieces, (c) to engage in extensive field ~ork, (d) to secure much aid from established statistical agencies of government, (e ) t o assemble a considerable number of experts in various fields, (f) to conduct 

approximately 25% more studies than are listed above, and (g) to p r epare a comprehensive 

summar~ report. 

Because of reductions made in personnel and in use of outside experts, limitation of 

access to field work and research agencies, and lack of jurisdiction over files, the projected plan was necessarily curtailed. The most serious curtailments were the omission of 

the comprehensive sum~ary report; the dropping of certain studies and the reduction in the 

coverage of other studies; and the abandonment of the consolidation and indexi ng of t he 

files. Fortunately, there is reason to hope that the files may yet be cared for under othe r 

auspices. 

Notwithstanding these limitations, if the files are ultimately consolidated and indexed the exploration of the NRA materials will have been su fficient t o make them accessible 

and highly useful. They constitute the largest and richest single body of in forma ticn 

concerning the problems and operations of industry ever assembled in any nation . 

9768-6. 

L. C. Marshall, 

Director, Division of Review. 





u 

ministration. 

no . 71 -,fork materials 

DATE ISSUED TO 

no . 71