|
|
| Citation |
- Permanent Link:
- http://ufdc.ufl.edu/AA00018842/00001
Material Information
- Title:
- History of the Code of Fair Competition for the ladies handbag industry approved code no. 332
- Series Title:
- Work materials ;
- Creator:
- United States -- National Recovery Administration
Pearson, Oliver W
- Place of Publication:
- [Washington, D.C
- Publisher:
- National Recovery Administration]
- Publication Date:
- 1936
- Language:
- English
- Physical Description:
- iv leaves, 609 p., vi leaves : ; 27 cm.
Subjects
- Subjects / Keywords:
- Industrial policy -- United States ( lcsh )
Handbag industry -- United States ( lcsh )
- Genre:
- federal government publication ( marcgt )
Notes
- General Note:
- "Robert C. Ayers, Chief, Histories Unit."
- Statement of Responsibility:
- Oliver W. Pearson.
Record Information
- Source Institution:
- University of Florida
- Rights Management:
- This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
- Resource Identifier:
- 020508854 ( ALEPH )
55214977 ( OCLC )
|
| Downloads |
This item has the following downloads:
|
| Full Text |
Business Library
CLASS
BOOK
II
V : . ... ....
C4
* : -_ i ,; ; ; .
Dec. RfOou ^^^1
.. .. ..::.. ; ...,,, . . ^ ... : :
:" .: *,;" " .. ,.K 'K*** 4..h':w : ,."^','y
*: : . ..'. : : : oK: : .. .. : :* :
.... ... ........
12. A9
: ; : '',:* :*. :::;< i~ .> -. - ; :', *. : : ; ::i, : ;**-* .
oS Y
: :' ", :! "i "" " *:. "':.. ": ; .. ." : : ; .. *':.:'s. ** : :* :w -
.. .. : .. .. .. .. : .. 4 S
mi..
IMP,
j% ': ..i~i 1k., i
,. s . .
4;I
AI
01i
I
r
I..
I.
V
Q YU
Al
fi
mt
tmV
m m m,
OFFICE OF NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
HISTORY OF THE CODE OF FAIR COMPETITION
for the
LADIES HANDBAG INDUSTRY
O A A .
WORK MATERIALS NO. 71
w
Administrative Section
March, 1936
-. > -A
- -' -1* - -- ".
HI S T 0 R Y
of the
CODE OF FAIR COMPETIT:CN
for the
LADIES HANDBAG INDUSTRY
Approved Code No. 332
Author: Oliver W. Pearson
Robert C. Ayers
Chief, Histories Unit
9R11
y W. r.
FGO E7ORD
This history of the Code of Fair Competition for the Ladies
Handbag Industry is mimeographed in order to make available a
sample of the code histories prepared by the Division of Review.
A similar service will be rendered in connection with certain
other code histories.
In order to get a complete picture of National Recovery Ad-
ministration materials applicable to a given industry, one must
visualize such a documented code history as this supported by
the three volumes of evidence which were sent to the President
at the time the code was recorm-ended for his approval, plus any
studies in this field either by the Division of Research and
Planning or by the Division of Review of the National Recovery
Administration, plus the vast amount of material in National Re-
covery Administration files which was developed in connection
with the formation and administration of the code. These con-
stitute a veritable treasury of information concerning the
operations and problems of industry.
This history contains a documented account of the formation
and administration of the code; the definition of the industry
and the principal products 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 operation wf the code authority, the dif-
ficulties encountered in the ad&-inistration, the extent of com-
pliance 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
provisions. 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 Administrators, Deputy Ad-
ministrators, Assistant Deputy Administrators and others con-
nected with the code formation and administration.
At the back of this history will be found a brief state-
ment of the studies and work undertaken by the Division of Review.
L. C. Marshall
Director, Division of Review
March 14, 1936
.I
9811
Digitized by the Internet Archive
in 2012
http://archive.org/details/historyofcode36u nit
*~~ .'"t
http ://arch ive. org/d etailIs/h isto ryo fcode36 u nit
Page
Letter of Transmittal
Preface
Code and Amendments
I. GENERAL I1IFOP5ATION
A. Definition of Industry ................................. 2
B. Definition of Industry Member ........................... 4
C. Statistics of Industry .................................. 6
II. HISTORY OF CODE FOWMILATION
A. Sponsoring Organization ................................. 14
B. From submission of first Draft .......................... 21
C. Public Hearings ... .. ............. ...................... . 23
D. From Public Hearing to Approval ......................... 25
III. CODE ADMINISTRATION
A. General Preliminary Discussion ................................ 45
B. Organization ................ ............. ..... ............ 51
C. Budgets and Bases of Assessment ....I.................. 63
D. Administration of Code .................................... 67
IV. OPERATION OF CODE PROVISIONS
A. Definitions ................ ... ........... .......... .... .. ... 82
B. Wages . . . .. . ................... ............................... .. . 83
C. HEours .......... ...... . ................... ............. .. 85
D. Other Labor Provisions ........ .. .... .................... 86
E. Administrative Provisions ........................................ 90
F. Price and Accounting Provisions ......................... 90
G. Trade Practices ........... ...... ..... .... .. .. .. ... .. .. 92
H. Other Provisions ...................... ................. . 96
V. RECOMME1D ATIOIlS
A. Undesirable or Unenforceable Provisions ................... 98
B. Compliance ..... ... ............... .. ...................... .. 98
C. Limitation on Production ................................ 98
D. Possible Consolidations ........................o....... 98
VI. PERSOINEL
A. Personnel connected with Code ..............o......... 101
B. Administration Member's Report
Appendices Exhibit N
VII. APPENDICES
A. Exhibits A to Z and Al to G1.
VIII. INDEX
. ,* A* . .
January 7, 1936.
MEMORA IUM
TO:
L. C. Marshall,
Director, Division of Review
Oliver W. Pearson
FROM:
SUBJECT:
History of the Code of Fair Competition
for the LADIES HA:iDBAG INDUSTRY.
There is tra.ns-nitted herewith the History of
the Code of Fair Competition for the Ladies Handbag
Industry.
This History was compiled in this office and
was written in accordance ivith the model outline
issued on July 10, 1935.
It is believed that this record, as submitted,
adequately reflects the History of the Code of Fair
Competition for the Ladies Handbag Industry.
Oliver W. Pearson
Approved:
Walter Mangum, Director,
Industry Section #3.
- iii -
9811
P R E F A C
The Ladies Handbag Industry was founded in this country some fifty
years ago Pnd entirely mo.nrned. by imported craftsmen. It continued for
many years as a craft trade and only of quite recent years had it evolved
into one of mass production with an increasingly large use of machinery,
Prosperous for years, alr:ost beyond belief, net returns to owners
very large, workraen or craftsmen earring $150 $200 and in many cases
$300 weekly it is not difficult to understand the mental condition that
came into leing, when machinery case u,.cn the horizon, mass production
threatened, labor became restive, and finally the depression arriving
with its consequent loss of profits0 To all of these factors can be
ascribed the unrest that existed when I.I.R,A. was placed upon the statute
books, but notwithstanding the disagreeing view points all had a belief
that a Code was necessary, and would prove as it later did, of great
benefit.
Reviewing the eighteen months I spent with the Ladies Handbag In-
dustry and its Code Authority as its Administration Member, looking back
over the other industries, some ten in number, to which I was accredited,
I realize today the outstanding quality of the work done by the Handbag
Group.
Perhaps other industries gathered more complete data, such for in-
stance millinery and L!en's Hats, but none better welded together con-
flicting interests, none accomplished more in finding the common ground
upon which to stand then did this sorely beset handbag Group.
Beginning with the days immediately preceding the enactment of the
I.I.R.A. hearts and minds of industry were filled with malice, hatred, and
all uncharitable-ess. This st-,.te of mind. continued throughout the code
negotiation period rnd did not .isqppear until some three months after the
code went into operation, and the last months of the Code era found man-
ufacturers more cohesive, more thoughtful in their relations with each
other, more inclined to look at their problems from the view point of in-
dustry at large.
I would not have it believed that the millennium arrived but certain
it is a degree of intelligence was injected into what had been a purely
selfish outlook and all bade fair to profit accordingly.
In those l-st days one eould feel in the air the different atmosphere
that pervaded deliberations, one trade organization had come into being
instead of several who hitherto had been at each others throats, and from
what I was told by a number of manufacturers the industry at the end of its
first code year was able to show at least some financial statements in
black ink, the first in several years,
Close study has been made of records in our files as well as those of
the code authority in New York. Many things stated are of necessity based
upon my own recollections, but checked with officials of the late code
authority, and I believe the following chapters represent a fairly com-
prehensive history of this code.
9811
-1-
0TNj RL I: TO-I_ TION
Definition of Industry
Princi-oal Products
Products under other Codes
Definition of Industry Member
Classes of Members
Statistics
9811
-2-
I. GENERAL ILTGRi.iATI CIT
In cominling this history references were m.de to all available
material in -.e.aslington amnd New York. This included:
1. PRINTED CODE
2. Volu-aes I, II and III of Code
3. Volumes I, II and III of Amenclidents
4. Volumes A ahd B, Central Records Section
5. Administration Orders
6. Deputy's Files
7. General Files
8. Research and Plannin;, Files
9. Government Agency Reoorts
10. Code Authority Reports in re Budgets
11. Code Authority files in ITew York
(.ow in possession of the ieticna1 Authority
for the Lolies >endbrg Industry, 347 Fifth
Avenue, ITew York.)
12. Administration le'.-.bers Files, New York City
(iTow in process of incorporation into General
Files, Washington, D. C.)
13. Personal contacts with lte Code Directors
14. History of Industry by Ab. iittenthal, Code
Director and filed witi Dr. L. C. lJarshall
about Septer.mber 15, 1935.
15. Bulletins issued by tie Code Authority.
A. Definition of Industry
The Code as originally proposed August 11, 1933, by the
Associated "iTndbag Industries of America, Inc. submitted the following
as the definition: -
"The term 'handba industry' Ft.s used *erein is
defined to mean the rrmnufacturo and/or whole-
sale distribution of l.dies handbags, pocket-
books and purses."
"The term 'person' as usec. herein s-arll include
natural persons, partner::.,i)s, associations
and corporations."
"The term femployce' as based 'Perein sh.ll include
every )erson actively engaged in the production
and/or wholesale distribution of products of the
h1i-andbag industry as herein defined."
(Ex-.ibit A part 2, Page 1.)
As defined in mimeogra-,-ed Revised Draft Tovember 6th,
1933 it read: -
9811
-3-
"The term 'Industry' as use'. herein includes
the mn.nu.acture of ladies' handbags, pocket-
books and purses."
(See _7xLibit A- Pa-rt 4.)
As Revised 1T',..vemaber 24, 1933 it read: -
1. "The tern *L-.7ut.L'l ,.s used. h'.erein includes
the a nufafct-are of ladies' misses, and
children h:oidba.s, pocketbooks, and plurses,
manufactured of any material of any kind or
nature."
In the drafts of December 8, December 12, December 21, 1933,
it remained without ch',.- ne.
(See Zxiibit A -rt 6, page 1: part 7, page 1: part 8, page 1.)
The ap_ r-.ved code Article II, Section 1, reads:
"The -term industry' as v-sec. herein includes the
mranula cture of ladies', misses', and chilCLren's
',.an -.,s, pocketbooks, and. purses, manufactured
of any material of any kind or nature. The term
'industry' s-i.ll not include, however, the
manufacture of .ndbas, pocketbooks, nursess and
mesh br.,s manufactured in whole of metal."
The cmm.aesmade resulted from warrioas conferences and upon ob-
jection by A. J. Barrenboim end MPIr. iTemi:-.n of the Legal Division,
counsel to the Division (see general files Code Record). They served
to clarify the definition in that t-.ey more clearly specified the
lines sought to be governed, and by eliminating the term "wholesale"
prevent overlap ini with distributing codes.
The generally accepted meaning of the Code definition included
shoppiIg bags, bathing b<.;s, h?.ndrerc'.ief bags,, vanity boxes,
cosmetic bags, nd knitting bas. however, to remove doubts and be-
cause of rep eated requests from indCuztry for a still clearer defini-
tion tie section was at the close in process of being amended to read:
'"T1e term industryr' as used herein includes
the ma inufacture of ladies', misses' and.
c_-ili.'rens' handbags, pocketbooks mand purses,
..L.. ; baz.s, bathin. ba s, :h.-.nd2:erchief
ba-.gs, 1,iddy bagsT, vanity boxes, c.:.m.i.tic b._.gs,
knittin:g ba-., manufactured of any mat rial of
any kind or nature. The term, h:wcver, .all
not include articles co:i.mnonly manf-'Qi by
LuL.,a.e and. ranc%, Tn t' er o- Ii t ; __. r
trc.veling rurpose*, nor cver-n i g tPr
9811
-4-
whatever iJurcse used, nor e.n'- article
rw.nuf-ctured for minens' use only, nor
i.ina.f;cture of hanc'b. s, pochetbookls,
-uarses, vanity cases,rnd iiie bags manu-
f-.ctured in whole of met;.lI."
Note the inclusion also of "1:i4i, bags". These are products of
a group of some 75 manufacturers w.-D at the ti:.ne of dissolution were
being transferred from the Lug,:.e and Fancy Leather Goods Code to
this Code.
(See lIinutes Lieeting No. 25 J:n. 3, 1935 rnd
corres.crndence general files)
Considerable opposition t.c, this last )ro-.sed definition was
raised by the Smanitary ''. 'ater roof Secialties Industry, because of
the inclusion of "bathing bass" and "cc s.ietic ba-s"; for meny such.
were strictly of waterproof cor rubberized nmaterials. After several
conferences witi l.'ir. Kenlricih of t e Saniitory, .'I.ter)rocf Specialties
Code Authority, this difference a': smoothed out. There was only one
large manufacturer, (Kleinert C;.i.Lnyx) and three sma.ll ones affected
and all but one, who had not yet been contacted, had agreed to use
Ladies handbag labels, in all ite..is Vhic- bordered on this code. (See
Code Record files)
1. Principal. Product s
Ladies Misses COhildrens
I':ndbagR
Pocl:etbooi:s
Purses (See Article II, Section 1 of Code)
2. Products also under ct-er Codes
Kiddy B-igs (LuTp..e and Fancy Leather Goods)
Bathing Bags (Sanit;-ry C. .7aterprcof SEpecialties)
B. Definition of Industr., iL ember
In the dr.ft of August 11, 1933 the term was stated:
"Thie term persont as used herein shall
include natural .persons, partnerships,
associations and corporations.
"Te term employer' as. used herein shall
include every person actively engaLed in
the production and/or wholesale distri-
bution of products of the -.rndbag indus-
9811
-5-
try as herein defined."
(Exhibit A Part 2)
In the August 18, 1913 draft it remained as stated in August 11
form, but in the Nov-.mber 6, 1933 form it read: -
"The term 'employee as used herein includes
any oerson -nra-ed in any phase of the industry,
in any capacity, receiving compensation for his
services, irresp-ective of the nature or method
of payment of such compensation."
"The term employerst as used herein includes
anyone for whose benefit or whose business
such an employee is engaged."
"The term member of this industry' includes
enyone engaged in the industry, either as an
employer or on his own behalf."
(Exhibit A Part 4)
In the revision of Novpmber 24, 1933 it read:-
"The term temoloyee' as used herein includes
any person engaged in any -ohase of the indus-
try, in any capacity, receiving comoensa-
tion for his services, irrespective of the
nature or method of payment of such comoen-
sation."
"The term 'Emrloyer' as used herein includes
anyone for whose benefit or in whose business
such en em-oloyee is engaged."
"IThe term 'member of the industry' includes
anyone engaged in the industry, either as
an employer or on his own behalf an' either
as manufacturer, manufacturing jobber or
contractor."
(Exhibit A Part V)
In the December 8, 1933, December 12, 1933 and December 21, 1933
revisions (see Exhibit A, parts 6-7-8) and in the ap-proved Code,
Article II, Section 4,- it- remains as above and quoted below:-
"The term Imember of the industry' as used
herein includes anyone engaged in the in-
dustry, either as an employer or on his own
behalf and either as manufacturer, mnnnufac-
turing jobber, or. contractor."
9811
-6-
Note: The definition of industry member includes in addition to
rrar-ufacturer "manufacturing jober or contractor." The ianufactur-
ing jobber is one who generally uses a contractor to m.rke goods for
him end to whom he supplies all or r.rt of the materials used in the
making of bags.
Contractors "were of the usu-1 type who did various operations on
bags, and erxe such as may be found in -all Lar.rnent industries. Some of
these contractors, however, made.e cc.aplete bags Eand some re-let -ortions
of this work out to homewor!:ers. T-iese contractors were subject to
the provisions of the Code, but were not assessed for t:Le expense of
administering the Code.
(See classified list of Industry Exhibit B rpart 3)
I1 Classes of -lieribers
There is to be found in E,-.ibit B, P-rts 1
1 and 2 a classified list of manufacturers
showing .the kind and character of goods
manufactured.
C. Str.tistics of the Indutry
Prior to the adoption- of their Code this Industry had never
attempted to gather. factual -datan, and in fa-ct had seemingly no idea
of the value of such. Under a code and because of an appreciation
by Code Directors of the value of such material there begon the
collection of data that at t'..e close promised to be of great service.
Progress was naturally slow because of industry' s inertia, due to
their lack of understanding, anmd it is also to be believed,to a fear
of disclosing and facing facts.
Department of Commierce figures bulletined by Code Authority
Vol. II of Bulletins issued No.',our, under dA.te of December 21, 1934
shows: .
1933 1931 1929
No. pf establishments. 218 260 290
Cost of materials,fuel $15,298,920.00 ."22,600,817.00 $35,351,605.00
etc.
Value of products 28,299,004.00 43,147,053.00 68,627,515.00
Value added by manu- ,
facture 13,000,084.00 20,5346,336.00 33,275,910.00
(Indicating a sharp decline from 1929 to 1933)
See Exhibit C.
noI,
-7-
Comr.rr?.tive Corts of L-.bor between Xew York area eand. outside
Tew York area. Coi_-iled in Sprin, 19C5 by the Code Directorate.
1:117 Z0IC AR-A
Bags to retail at 30-'"
(imitation leather)
;15.00 to ,133.00 ,ross
Bags to retail at ,1.00 oo30.00 to ?36.00 gross
(imitation leat2er)
Bags to retail at l;l.95 "51.00 to ;57.00 ross
Bags to retail at -A2.95 :72.00 to ;84.00 ross
Bags to retail at ".4.95 3596.00 to 130.00 gross
CUT0IDE .:.; YC_: APSA
S9.00 to $12.00 gross
'13.00 to :24.00 gross
;33.00 to '39.00 gross
,)45.00 to $51.00 gross
$60.00 to 1'72.00 gross
These figures are based. on the present l.bor rates now being paid in
the industry. Any changes in rates because of the semi-skilled
definition or increase in wa.ges due to % Union agreement, may alter
the conditions.
The National Authority for the Ladies 7anCdba-g Industry
successors to the Code Authority under date of
Septe.ibOer 19J5 grve me the following: -
Units Enhgaged
Contractors
.7orhers en:aed (est)
CCapitvl (est)
Totea volume (est)
379
146
15,000
$10 ,000 ,000. 00
4 0,0001000.00
ancd rerarh that five years a.; fifteen units each did in
excess of $'1,000,000.00 annually whereas in 1935 but one
will reach tat fi-,ur-.
In answer to an inquiry to the National Authority dated
September 12, 19Z5, we are given the following:
Figured on dollar value it is believed that
50, of bags are made of Leather
50,J of bags are made of Cloth
(Imitation Leathier)
9811
*(b)
(c)
(e)
(e)
-8-
Figured. on units engr.ted
30o; icixi-ufacture LCeather
70, mnr-nufr.cturo Clot.- (i..iit:-.ticn leather)
(See Exliibit D)
Research aind PirIning files disclose in ,. report prer.red
by Jaries P. Davis, February I, 1934: -
Source: Bureau.
Report
of Census
from Industry
1923 1031
1932 1933
Annu.l volume apprcx.
1929
;iC7,000,000
1931 .nd 1932
.'33,000,000
El iPLOYi E!NT
,.7.je E-.rners
.71 5
-5?513)
6326
3 370
10 '30
87,17
12000
1 7000
Vp-ue of
Products
(T-ic.u snds)
$!13,083
32,732
43,105
37 ,435
68,828
4 .9 147
35,000
35,000
ITITE: Above 7% should be deducted to cover production
of lien's pocketbooks and bill folds. (These aPre
not included under this code.)
(See Exhibit E, pre? 1 ?1nd 2)
C6de Authority Report, liarc'i 19,"5, s-iows: -
* Y-umber of est-blismnents
* t to be assessed
Annual sales for 1934 & 1935
Amount of sales upon which -ssess-
ments have been collected
Volume of Sales upon whic.ih .ssess-
mrnents will be collected, aEprox.
Number of employees as of December
31, 1934
Total payroll of industry
500
325
$35,000,000
$26,093,664
$ 7,000,000
15,000
$ 9,000,000.00
9811
1921
1923
1925
1927
1929
1931
1932
1933
-9-
Geogr-hiic.IL Diztributiorn of' ,-nufa.cturers:
Eastern
Southern
Iicidwestern
Pp.cific. Coast
',). 873 650.00
601,481.00
1,392,490.00
226,043.00
26 ,093, 664.00
91.50
2.30
5.33
0.87
100.00
Areas Defined
Eastern: New York; lMiassacusetts; Connecticut;
P'aod.e Island; New Jersey; Pennsylva-nia:
Southern: L.aryland; Virginia; Florida; and Texas:
liidwest: Illinois; Wisconsin; l:is'souri; sand Ohio:
Pacific: :7s..ington and California.
(See Exhibit F, page 1. Budget)
i[0TE: The seeming disparity is to be expl:r.ined in
one case by giving a total without breakdown,
in the other by separating manufacturing
units from contractor units.
9811
-10-
Files of L.abor Advisory 3oard foune. in Gener.1 Files:
PCCIKETBO0KS, PURSES, CA.M CASES (Primarily Lea.ther)
(u.S. CSlJS rIGtJR3S)
Pocketbooks arses c.rdl crses 1929
"Jage Earners
Ave. for year
10,430
40 hrs.
under
(7) 18,.'.
Over 40
Under 45
(176) ,243
45-48 -irs. Over 48 but
Inclusive not over 54
(58) 2,185 (32) 1,755
c:'DiTI,,-r: 3-2 IIDUSTRY
No. 7;.je
Estr'b. Enin-t.
1931 253 8,545
1929 290 10,':30
1927 257
1925 207
8,570
5,518
10,086,605
1 ,229,422
13,169,309
7,291,112.
Ccst
of :.t.
2-1,'17 931
35,1. ,603
129, 213, 524
16,235, 32
V-.lue
"-:1 ,926,190
63,6- 7,315
57,344,655
32,731,725
Added
Value
20,008,359
33,275,910
27,726,131
16,495,843
DISTRIBUTI*-7 1929
New York
Pennsylvrnip.
das sachuisetts
Tew Jersey
192 Est.
17 "
17 "
8 "
6,101 workers
1 ,0.10
300696
800
10,952,801 w-'es 47,631,431vclue
957,711 4,306,827 "
709,779 3,540,411 "
962,623 3,656,966 "
Then Ohio, Illinois, l.issouri, C-liforni-., T7isconsin, rnd smell Pmounts
in other str.tes.
AVERAGE AITTIJAL .7AGE
U. S.
1931 )1,180
1929 1,460
1927 1,536
No. of
3st.
290
9811
-11-
'J ges of certain women on various opoer-tions in a Springfield, LIass.
factory:
Se-ot. 1925
R. te
"1.
37.,
36
28
34K;
351
4-1
Change
in
1926
from
dry work
to
piece work
.ours
156
169
170,
163
1381-
174k-
Se-t. 1928
Earnings
91.43
72.412
58.03
80.48
66.40
85. 34
loM.ien' s LBureeau
Pro-ortion of' i. Y. State -rod-uction to total production
19h2"
(68,627 515
47,631,431
value of products
it i1 II
66.31/, of the total number of establisijnents
53. '.9/ of the total number of vwgae earners
:.f 1.3 plants in N. Y. State, 167 are in New York County
9 are in Kings County
5 are in Queens Countyr
-f 17 plants in Penna., 13 are in Philadelxp.iia.
9811
.:ours
1721
16 -
178
1651}
104.;
U-1^
i-,nin r s
64.60
61.26
49.85
57. 36
37.19
76.05
.ou rl y
Rate
58i
43
34
48
49
Total
U.S.
Y:. y.
State
-12-
Picture of '"rnd Ba. Industry
As given cf July 1, 1934 compiled by Co.e Directors: (See G-eneral
files)
In 1904
- 7e entire n-.ticn d.i .';C,500,000 worth of business
In 1929
As of July 1s
1934
11 11
S.';67,000,000 in leather bags
1,000,000 in evening and
fabric bags
4,000,000 in bags to retail
for .1;. 00
Tie volume o' basi-nes- wvas )4j0,000,000., out of
which .23,000,000. covered ba.-gs to retail fi'om
200 up to )$1.00, ,.nCL the b,.l."ice for begs from
(.19.5 up to '23.O ea.ch.
35J of th.e N1 ticril s retail business in hpnibags
is done between ThPmks-ivin, Da.y and December 24th.
B igs at )2.95 r-nd. u. -Lre made by hind in New York
City.
Bags from 20.! to $1.00 f re made by the newv and
modern machinery in t-:.e out-of-town factories.
PRC.DJOgTIOI: II: UiITS
Je proOuced ?L ..0C0,000 units
In 1934 as of
July 1st-
7e produced 70,000,000 units from 20A up to :1.00,and
OO,500,000 2.93 and up
Code Authority 1ionthly Reports
(See Exi.ibit F) W-.ge Reports Sales Volume -
Unit Voluie Cl .assificc.tim of workers engr.aged.
9811
In 1929
HISTORY OF CODE FOR RILAPIIOTT
Sponsoring' Organi zations
Officers, Code Committees
First Draft to Public Hearing
Public He .rings
Aopproval
9811
-14-
I. BR ZZ 1S 72-] ;A ,A- TO:
1. Commercial. Agencies no cvr-i".able mrteriol.
2. De-oartment of Commerce ceni-us o mLanufpcturerv, no segregated
material.
3. Department of Commerce ce;-.-us of distribution no segregated
material.
4. Reser.rch rnC Planni-m bulletiiFs .ond recordQ.
5. Coee Authoritr files.
6. Code Authoritry ulletinci (E:-ijit C)
7. Administration members' file.
8. IT:tional Authorit-r of the L-C.ies 'n0rdbvg Ineustrv, 347 2ifth
Avenue, NeT7 Yor':. (Succo-"::or- to Code Authorit-.)
9. General Files.
10. Lonthlv '.eoorts Code Auto,--ri -- ( -hibit F.)
II. HISTORY 0o COD._ 70Oj.ULUIcri'
A. SPU0SOFRI C OP.TjIATIC"TS
1. Statc-cnt re t -i.e rp. vt.'entption, ,ze nnd objectives.
Code i.'.et" .,I etc.
1. While t'ie first "o6c, :-hibit A, part 1 and 2, iith its
covering letter of trcnsmittal -r 'r -.entod b,r the Associated L{andba.-
Industries of America, Ind., ~}ev Yor'k Cit--, Auiast 8'th, 1933, it -as not
the document entered for the first onn on.jl- 2urlic hear-ing. December 8,
1933.
ianyr conferences vere il. o- i-.Custr-r !:roups th;.,n ellves, rnd riith
Deputies, both in I's Yor'. and. We i:i '-ton, before r -vi-io.E '7ere a reed
uoon and the inst.-nuent -out into i -.,r'rctor- r-'oe ro- that hearing.
The revised document 7-2rJ "irn: 11 soonsoreC by:
Associated -Ijdb'-; Ind*us~'Vie- of America, Inc., i1ev York
ilidrest Thn bi', -. :n(c' Sr i'.[ Le;.t.ier 7aros Association Inc.,
Chic.I:o.
Industrial Cour cil o.: the Lacies 4;ndb.a- IndustrT,, .'ev
York.
Clairin.- to represent ir thoiDi cornoine@ membership 75', of the
industry 's volume, (See trrnscrint of ,.ea:-in- December 8, 1953).
It vils mair.ly through the efforts o:f- .r. A. ]iittenthal, Chair-
man anid Vice President ind inr. .. .oses-o-., Executive Secretary of the
first nnauied As,-ociation that the CoCe "-v. nut into usaule shape for the
public hearing and that the s-oonsorir- Associations came together to
jointly appear before the ACmii-istr: tion.
The objects of the first sponsoring or,-_anization that presented
the first code are set forth in the paragraph belo'7:
9811
-15-
.-Le obj-ct of this Association shall be to secure
r.nC provide cooperative arnd united effort in all matters
relating to the -orowresc, development, -'elfare or im-
provement of conditions in the Hcndba.; Industiy and in-
dust'-ies correlated. nd contribibuting to and affecting. the
welfare and 1o'o-'mss of the iandba Industry in all its
branches, to foster thec trade anC commercial interests
of its members; to secure freedom from unjust and unlav-
fful exactions; to inculcate and maintain just and eouit-
able princioles; to eliminate unfair or imp-roper practices;
to establish and maintain uniformity and eouitr in the
customs and commercial usnae. :; in' the InC idistry; to acouire,
-preserve, collect, and disseminate business information
deemed "ise'ul, advan.rita.;eous or vcaluoble to its members
reg-'rding the handba' Industry; to reform, correct and
prevent arn- abuse and adjust commercial controversies,
misunde-.strndin,-s or grievances between -umbers or be-
twreen its members and the trade; to enforce its said ob-
jects and purposes among its members ", such disciplin-
ary and other measures as rna'r be reed upon by them and
as nay be provided by its by-la'7s; and in general to do
all matters tending to the improvement of the 'T.,ndbe"
Industry in all its commercial aspects."
(See o*-aOraoh 3, -oage 1, letter of transmittal E-diibit
A, part 1.)
%
This organization came into beir.r before the Code era. (see ppe 19,
this histor-.).
.hils there is no C.ocume-ntary evidence of -Ihat transpired at the
various meetin.-i. and conferences, members of industry preferring, I am
told., not to have written records of their maw- bitter fights, the T'riter
is full-" a-"e.re of the conditions that existed lon,1 prior to the enactment
of the iT.I.R.A. anC. of -hose that obtained during the ensuing months.
The arguments oresenteC ,-ere b&seC upon the labor situation obtain-
ing in 1933, a situation caused by the migration of industry from its
first an principal home base iVev Yor'k Cit-, and other contributing fac-
tors uoon 'Vhich I will touch later. (Page 16, this history)
The shifting of industry from the hietro-oolitan City started about
1928 "nd 1929 nsid .ps caused, it is claimed and I believe cannot be dis-
*:'ut2, by- the *he.vyI handed. tactics of the labor leader'hin then in -oo'-er.
As more and. more manufacturers located their plants in cities anC,
towns outside the Mietropolitan area, taking avnte of the cheao labor
taere to be found, naturallyr those remninin,- in 1'e-', York and under Union
agreements founr.d competition, which .iac laroely based uoon labor costs,
almost un-neetable. It was not ioT7e-;sr until -7 'ere 7rell into the de-
pression yeal.?, '7ith a consistent loveri;:...: of price floors that real bit-
terness camne into e:-istence.
The N.I.R.A. ]L.in- been v:ritten and mvan-r, nen- row. York City manu-
facturers believed the-r ss3 an opportunity to even up conditions if they
9811
were allowed. tovrite into code for tneir ir.'.-..t.-, l'bor classifications,
wape scales and hours that would mak:e iore c.ifficu!t the -ath of the out-
of-town manufacturers.
To give a clear cut picture of tae cor;J]itio1? that lee to the then
existing{ situation, I quote from a 1oc',mennt ile on or nbout September
13, 1935 with the Administration (Dr. i'rrnha!1 revie,-: Division) anC ore-
pated by the former Code Director I-'.. iittent.L I. (:L'.ibit O)
"Up until the year 1929, more th1,n 8'` ; of th-e indusct--.. ''as located.
within the Metropolitan area of Few.7 York. The industry loc-ted in New
York has been in contractual relations :ith the Union for almost twenty
years. In the year 1928, the first mrnrrufc'cturer moved a'-ay from the
unionized centre of L'etropolitan i-ev York, a510 bean manufacturing in
Allentown, Pennsylv-nia, under non-union conditions. At thi, time the
Union minimum wagess filed byr Prreemen. vith the manufacturers in 1ew York
were $45.00 a week for skilled -`orkers. Acunmission of Torkers to the
skilled branches were controlled by Lile Tnio-n, so that in some of those
branches of the industry- workers .ei'nec on a noiece '-ork brei- from $100.00
to $200.00 in a 44 hour week. Those amnr-.ifc turers :,ho moved from ie,' York
were unable to obtain -1killed v worker in their re.s'mcctive localities.
They were compelled to em~lo-.- workers withoutt an" previous e::oerience in
the industry. Machinery heretofore little used in industry ,,r a- invented
to take the place of manr of the operations )erfor edc. by skilled .-orkers
in the E'ew York factories. 7orke-xs in these neo. localiti'o r'ere oaid
$6.00 or $7.00 oer -eek, and they- worked from 48 to 54 hou-irs a -!eek. "
"7ith the tremendous difference in labor costr, thiosc maniufcturing
outside of re'r York, vere .ble to giv? greater p.alues or sell for less,
with the result that the minufa.cturers oer.tin- in 'ew York under Union
conditions '.ore forced to meet this competition by s.-crificir' their pro-
fits. The success of the fen ,Jho --ov-d r'a-, offered the incentive for
others to follow. In the year 1.933, oinly., oout 50? of the industry still
remained in the "etrooolitan are. of iJe' Yor.::. Those T.io iove3. or opened
new factories located in the eastern states, a fe" in the Cicago area,
and a few small units were scattered throuhfiut the countrvr, chief, on
the Pacific Coast. The Union was unable to ect.iilish Union conditions in
these factories outside of ,.E' York:." (Some out of torn factories were
and are unionized but under different conditions then those of i1er York
City).
"The factories remaining in !e"' Yor!k -ere chiefl-' those making the
high grode handbags which required the most .killful workers."
"At the time the Code w:s bein.- Cra.fted, the industr,- was about
equallv divided bet-.',een those manufacturers havin, contractual relations
with the Union located in iew York, and thone without Union conditions
all of whom were located outside of lTevr Yor'.-. Factories in re'I York
were paying first class workers (by Union AJ.reement) $35.75 a week, and
second class workers $:32.00 a week. "eneral ha.lp about $18.00 a week
for a 44 hour ,eek. Factories outside of Pew Yor'k were -oaring their best
worker, about $20.00 to $22.00 a w.;ek enrK rier- 1 hel') from $6.00 to $8.00
a week for a 48 to 54 hour week."
9811
"Bitter struggle resulted because of the efforts of the Unionized
factories to establish in the Code a classification of the workers ac-
cording to their -kill and the operations performed at vTa e scales c-
proximatinT those that vwere being paid in Union factories. Those manu-
facturers not unionized, fought to prevent the clasificrtion of the -or-
kers an.-' the eptablishing of ajge scales in the Code aoove the minimum of
$14.00, claiming that their workers were not skilled, that the system of
work em-oloyed in their factories, k:.now7n as the "section system" (not p-er-
mitted in a Union ,-.ctorr) did not recuiro c-ny -:sill; that new machinery
and. ne-' mrethod6' revolutionized the manufacturing of ladies handbn.s, par-
ticularl.: in factories mr-ing low price bags of cloth, (imitation leather)
to retail at one dollar or les. At this time 80 of the manufacturers
making these cheap bags were located outside of Nietropolitan Iteu Yor:."
"At the tine the Code for the industry was adoote, the wage scales
in the industry resembled '.nmne'"he.t a 'toboggan slide, going from $5' .75 a
week (the minimum demanded by the Union for skilled workers) down to
16.00 a week paid in same outside factories."
Meetings were so frequent, discussion prolonged and acrimonious,
almost to the point of blows, that one wonders how those taking part
found time to attend to their production and selling operations.
Through the refusal of the Administration to -rite into the Code the
asked for classification or "-:_w-e scales above the minimum, labor clauses
were at last ironed out, but only to a degree, for there was inserted a
provision, Article IV, Section 2, for "semi shilled", end a ,age set for
them. This was stayed in the President's order of approval and became
the subject matter of a later hearing, proving to be a constant thorn in
every one's side.
Having arrived at some semblance of peace, dissensions broke out
anew over the set up of the Code Authority, the method of selection, and
the division of membership, as bet':een out of to0wn and lew7 York. This
was finally settled, although not to every one's satisfaction, and the
Code Authority was finally set up as provided.
Of the sponsorinr- or-anizations, tio placed no restrictions upon
membership an,` dues were not large. These two were the Associated Hand-
bog Industries of America, Inc., :Tevr York, anC the vlidrest Handbag and
Small Leather "Jares Associstion, Inc., Chicago. The membership of the
third. rouo, the Industrial Council of the Ladies 'TTndbaj Industr-, "iew
York "-.s confined to manufacturers having contractual relations with the
Union. Particulars of these three groups will be found in the succeeding
para.- roohs.
2. Officers Code Committees, Interested G-rou-ios
T'ie officers of the various Industr rou,''.s who s-oonsored the Code
were: -
Associated Handba Ind'o tried of .meric.-, Inc., e" York, N.Y.
(Succeedin the Leather Goods Association.)
9811
-18-
Julius Ilichel
A. Mittenthla]
S.muel Gold mrnith
lIorris Immerman
iEaurice S. liosesson
Presic'Lent
Chywi rian ,V 7. Press.
Tree curer
Secretary
Exec. Secrete...-
li 'ik & elcinen, Inc., U.Y.
'-31..1'L 8: i"tenthal, 1 "N .
Cc.l. mitn BJros., i.. Y.
2e crsft .if-., Inc.
^._oc. r-0n6bae Industry of
..-i3rica, Inc.
Incorporate. June 14th, 195 '"LrmcLr the '.a -* of the State of eien York.
Hag membership of 100 concerns th'Aou hobt the Unitec. States.
,I"idwest Fan'.ba.- and Small Leather :Tohe? A'sociatio:n, Chica:-o, Ill.
President
1st Vice Pres.
2nd Vice Pres.
Treasurer
Secretary
IHar.-y ILorris
7m. A. Tanner
Ser.uel Lialov
Ben. D. Levine
Ear. M. Luce
ILort is 'ann qeill-, Inc., Chlic-.o, Ill.
Royal LeatlLe- Goods Co., St. Louis, l:o.
Crlytal Leather Gorods Co., Chicaro, Ill.
Mir-o Leathlier Goods Co., Chicago, Ill.
320 71. Adam? St., 3nicago, Ill.
Approximate Membership 15.
Industrial Council of the Leather Goods 1i-uufscture.'s Inc., Fen York, T.Y.
President MLichael Eienen Bier.en D-avis Inc., Ner York
Vice Pres. Samuel A. J. Rosenthal Rout Rosenthal Co., New York
Sec. & Tress. Milton J. Lefcort
Appro.iiui.te Iembershio 50.
One other importJnt- Trde Association came into bein.- during the
first days of code writin-7. This was ::no'.n as the NTtional Association of
Ladies Handba- I.anufacturers (first knownn as Poo-i'-,_r Priced HK-ndba- ianu-
facturers Association).
I quote the followvring letter to em 'ha!]F.z t.ie position taken byr this
association, through its couns1, enL'k to ill1L,-trtite the feclin7 e-'irting
between the contending grouis.
SCHLESIiIGER & A:RI:SxY
C0[IT'SELLORS AT LA.
270 Broaduwry
lNev York City
Se-tember 22, 1933
James C. 7orthly, Eso.,
Assistant Deout'r A6ministrator, IT. R. A.
Department of Com.-ierce Building
Tashin'rton, D. C.
Dear Sir:
Re:. Ladies {ane a:.' Industry Coc'e.
In this connection may we be permitted to advise you that 1e represent
9811
-19-
the National Association of Ladies T,-.ndbi' F'nnufacturers formerlyy Popu-
lar Priced Tandba;. Manufacturer- Association n,.nme ch-.n.ed Seotember 11,
1933) v"hich has a present membership of fortyr among rhich are included
practic1ll- all of thile largest r..?nuiFcturers in the industry. The mem-
bership of this Association will be considerably vu-mented by the affilia-
tion therewith of the h'idpTest Iiand 3B J, Siiell Leather '7ares Association,
havin- a membersnlip of tventyr-t o and to ao-'ove such affiliation a special
meeting, of the .i--est Hand B--, & Small Leather '.6res Association has been
called for Sentombpr 23re, 19J7-, at Chica.o and relative thereto the
Secretary thereof under Cate of September 20, 193., vrites us -
"I believe after that meeting, in fact I am almost sure,
vie can send. you our formal acceptance of your propositions
a.nd ha'.e you enroll as a subsidiary."
The present membership of the ITrtionel Association of Ladies Hand-
bag manufacturersrs (exclusive of the Liid--est Hand 33Z & Small Leather Uares
Association) is representative of the entire industry, controls a majority
of production and employrs a large majority of the employees engaged in the
industry. lUan;T of the members of this Association were formerly members
of the Associated Handbar: Industries of America, Inc., the "submittin;
association," and recently found it necessary to sever their relations
therewith, because the interests of and the problems affecting the members
of the As-ociation we represent and those in control of the "submitting
association" are conflicting if not diametrically opposed to each other.
The purpose of this letter is to advise you, as Te are informed, that
the "submitting association" is not representative of the industry and
that it is not authorizeC to speak or act for the members of the Associa-
tion we represent and to respectfully suggest that, in light of the infor-
mation nerein contained, it miht be advisable to have its representative
particiocte in the preliminary hearing on September 28th.
Very tr.ly :o'rs,
SCiHL7ISiGER & X?_INSKY
By (Si,-ned) I. E. Schlesinger
IZS:IG
Encs.
The officers of the rTational Association of Ladies Handba. manufacturers
were: -
President Ira Rosenzweig
Vice Pres. Morris Aarenau Aarenm and 7olfInc., Fall Piver, Mass.
Treasurer Henr-,T lerers i.eers JIfg. Co., r- Connecticut.
Secretary Ethel IYEel
Appro-iimate lember.hip 40.
9811
-20-
This Association too'-: exception. to the Code al.. )'.es;.nted and remained. in
oDposition long, sfter approval.
The Midwestern Group and the s-i&Ull local i .27ch.1sett., Grouo (Haver-
hill Ladies H.ndbag Association) vTer-e -.ot Fcti';e ,-.articipants in these
fights, in fact were Trade Asaci:.tir3' harry! rio- than in n-ne, onl-y
coming into beir-n about this time. rC- the la.t nimneoe. Association, vie
have no record ube-rnd mention here and. there -.t tLie he..rin,- cnd no -oar-
ticulars are at present available.
The following wTere the Committees formed: -
For Associated iancoba?.' In:'ustries oL' Aeirica, Inc.
A. Mittenthal, Chairman
M. PR. Biennen
H. Schoenfield
IM. Imme eman
M. S. H"osesson
W. Green'j aun
S. Mutterper!
~. ji ^^d
S. R. Golc smith ...
C. MHoss
For InL.strii?! Council of Leather .ooc: ..nuf'cturi:.- Inc.
I. Schkwenholz
M. Lefcort
'.v'. -einman
J. I.ichel
For LIidvest Harhbc:- and Sm'll L:A -a "'ar re A.rsocition, Inc.
Samuel lc.low
3d". I1. Luce
For national Association of Ir.itttion and Le.r.Kce: To-,.e-ties
(There is confusion in records as to correct :mm3 of this
Association, sometimes it is -:eferrer' to hiere given,
sometimes as national Associa'ion of '[nd Bag :.cnufFcturers.)
Hyman Burstein
Irving I'i .-ors
Murra-.r 'Resnick
Snuruel -. Goldsmith
Isidor Z. Schlesinger
Sol Mutterperi
For Ha-eriill . ea.dec.d Ba,- A gociation
Crest Sc.annitiles
9811
-21-
3. FPR.Or.i SUB.ISION OF FIRST DRA'T CODE TO P'FBLIC :EA7jFj '
1. 3rief Snummary of ConferenceF an4 fiegotiations
CoAistant reference is found in thile --?neral files, Volume A and the
transcript o' the first hearing as to conferences, proposed and held.,
both in the several months proce-dir.-, and follovwin; the first hearing,
but no record of these are to be found in the files., Ireither is there
anr record of the many conferences held byr industry for I am told that
because of the bitterness of the fightin: it i.as not deemed politic to
keep such.
In the lirht of my own kno'2led(e it is however not difficult to
piece together the hav.eni.-.-s of that time and to at least form an idea
of the orinci-al points at issue.
It wis maintained by the iajor dissenting 7roup nationala l Associa-
tion of Ladies Hendbs- I-nr.facturers) that the sponsors of the first code
raft submitted were not representative, therefore it followed their
vie",s '',ere not as so,._nI and. constructive as they should and myi.-ht have
been. Thi- it -,:7s felt, 'Tas particularlyr the case with respect to clas-
sificationr of workers, which 1iew York wanted, and representation on, ancd
method of selection of the Code Authority.
naturally Y'ational's conclusions (see brief incorporated. in trans-
cript of Public Hearin-, poa.es 238 to 263 inclusive) led to frequent con-
ferences, corresoondenne and telegra-,, which last are to be found in the
general files. In addition, Col. Lea's files, Vol, me A, shove that meet-
ings and correspondence were held with officials of the nationall detail
Dry Goods Association ','ith respect to the discount and term provisions
proposed by industry. A c-lance over the many communications received
gives an idea of who's who in the Department Store field, and definitely
expresses unalterable opoositioi to ,n", changes in terms over those in
existence for some years.
Here as in other industries it "as a case of i-er York vs. the rest
of the country, co-apled with a particularly- bad labor situation intensi-
fied by the mi ration movement.
Both labor and manufacturers were in the pre-depression d.,-s suffer-
ing fror too much financial fat, inability to think clearly, and refusal
to consider and find the sensible approach to their problems. Labor, as
re'ore3.ntec'. by Union Officials then in power, refused to discipline their
o.'n oeo olo- so th't rank and file ran riot. In this connection it is in-
terestirn- to note that, as is often the case it was a small thin, that
led to the first Te,- York mr.-iuf'acturer leaving the Lletropolitan area.
This ma.nu'acturer complained to Union officials that one of his ':.orloien
had. scat in his face and called him unprintable nr-r.eq. The manufacturer
nsturall' e-:mected the offendinC 'orkman would. be edisciplinede. Failing
to -et redress from the Union he came to the conclusion thot he could no
lon-er live in hprmon- i with the Union and decider to find factory accomo-
dations outside the cit-'r limits, movin.- to P n:n.-Ivania. Little byr little
industr-y ].eft Ieir Yox City, anc the *epre.:ion setting in in full force
the situation became* denu-erousl-7 acute.
9811
-22-
In the -oeriod -i-neictel-- -,rocce.'.in,r the C..de, mass production came
in and the average orice-for .iFan.OE .,s nad .fE.len front $2.50 and $3.00 to
$1.00 or les Daring ";hat time, hE.-iri- rc,: c'.ecr t.1? bottom of competition
brnsed upon labor, incu'-.t-;'- be :-n to r-.d to t.iir productst, gadets of one
sort or another, a character of b.-, ;'.cc(..!-oris .icr_-tofore found only in
the hiiaer price ran"-es .. n.rmstin., the ranze o. -ac'.ets in the domestic
markets, there be.7an a combine of forei-n mar.'et.- zo that at the beginning
of the Code era, ind.istrv '7as in Cespoer.t.3 straits, for obviously there
must be an end to such a'competitive r,?e.
Pre-code ConferenceE ouicklv develooec taP.t i1evi York manufacturers
sv, in the Code, an opportunity to at lkast )artielly even u-o vTrith- out of
tow'n industi7 by -ritin.i- into the inst,:-ment, provisions for cla7sifica-
tion, etc. In conferences with the Administrftion it developed that al-
thou.h classification had. been allo..ed in certain industries it had been
declsre8, as contrary to policy. (x-_iibit J.)
Durin,- this period labor itself *7as not idle ?nd it too v'as insistent
upon classification vn.i at the public hearing. of December r C, 1933 -oresented
a comprehensive brief covering this. (Se2 pa..ces 50 to 99 transcrint
Public Hearin. of that date.) Ratura-ll-v these a' imnentcs ere resented by
manufacturers outside of the ;-ei Yorl: area, aence t.le fights. Summed uo,
the main points at issae wTere 30 hours against 40, classification vs. non-
classification, discounts and representation. A-r-romenits were not reached
and the proposed code went to public h'earin,: an:. 'Icpited points not even
then settleC.
9811
C. PUBLIC KEARI:GS ON CODE
1# Dates: major personnel: results
The only public hearing held took place on
December 8th, 1933 at the Carlton Hotel, Washington, D. C.
It was n-resided over by Dr. Earl Dean Howard, Deputy Admin-
istrator, who had as advisors:-
Mr. Max Berkowitz, Industrial Advisory Board
Hiss Rose Schneiderman & W. E. Bryann, Labor
Advisory Board
11r. Fred Huhlein, Consumers Advisory Board
Mr. J. P. Davis, Division of Research and Planning
Mr. G. H. Barrenboim, Legal Division,
and the principal witnesses heard were:-
Vr. A. -Mittenthal, Associated Handbag Industries
of America
Mr. I. Schoenholz, Industrial Council of Leather
Goods ManiLfacturers '
Mr. E. M. Luce, Secretary, Midwestern Handbag
and Small Leather Wares Association
Mr. Isadore E. Schlesinger of Schl-esinger and
Krinsky, 270 Broadway, New York, Counsel for
and representing National Association of
Imitation and Leather Novelties.
Mr. C. A. Newton, representing Meeker & Co.,
Joplin, Mo.
Mr. Irving C. Fox and Yr. Samuel W. Reyburn
representing the National Retail Dry Goods
Association
Mr. Lewis2Waldman, Counsel for and representing the
International Pocketbook Workers Union
Affiliated with A. F. of L.
Mr. Maurice 1,agid, Associated Handbag Industries of
America
Mr. M. R. Bienen, Industrial Council of Leather
Goods Manufacturers.
Mr, Mittenthal of Associated Handbag Industries of America,
the first witness heard stated that his association together with
the two affiliated organizations, Industrial Council and Mid-
western represented about 75% of the entire industry.
This figure was disputed however by Mr. Schlesinger, ap-
pearing for National Association of Imitation and Leather
Novelties, basing his figures on the Census report of 1931. Later
he incorporated in the record a brief covering this. (Pages 238 to
263 transcript Public Hearing December 8, 1933).
-24-
The other witnesses were heard in about the order given and as
the hearing progressed it became clear that the sharp division evidenced
in pre-code conferences still existed among the manufacturers themselves,
between manufacturers and labor respecting basic wages, classification
homework and hours, further that industry as re-oresented from the eastern
States fell into two camJs-and that in their various meetings had not
been able to find a common ground, and still further that the only major
proposal upon which there was a meeting of minds, insofar as manufacturers
were concerned, was that of the terms under which industry desired to
sell goods,
As stated in the foregoing chapter, labor wanted 30 hours specified,
as against 40 hours pro-oosed by and agreed to by manufacturers (see para-
graph 2 page 55 transcript of public hearing, December 8, 1933). The
argument presented by labor was that only by so doing could the unemployed
workers be absorbed. manufacturers on the other hand pointed out that the
out of town manufacturerss at least, accustomed to working 48 to 54 hours
could not meet such a demand and live and were making quite a sacrifice
as it was. Labor also insisted that home work be abolished. The principal
group using Homeworkers, Beaded jag I'anufacturers, insisted thnt they could
not operate without such -or'-ers. Labor insisted they must have classi-
fication. Out of town industry refused to consider this and it was later
ruled out by the Administration as contrary to policy ]laid down by the
Policy Board. (Exhibit J.)
Manufacturers particularly those of the East were at odds among
themselves over representation, since the out of town nen felt thqt having
the bulk of production they should have a majority on the new Code Authorit
This was disputed by the Associated group, the principal sponsor of the
code who insisted, that re-recented in the National's figures were a number
of Associated members. Either could agree upon this point. (See brief,
pages 238 to 254 Transcript Public Hearing).
There was also voiced by Mr. ITewton, representing !eeker Cob, Joplin,
Mo., an objection to the proposal covering learners or apprentices, and
pointing out their need for a differential. (Page 27, Transcript Public
Hearing, December 18, 1933)
It was also brought sharply out that the retail world as represented
by Messrs. Fox and Reyburn were opposed to any change in terms. These
gentlemen gave the Administration to understand that the discounts at
present in use had always obtained, should be retained, and the new 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 responsible for them, and that for many years prior, term
had been substantially as proposed in the code.
(See Exhibit H, which although proposed long after, states
the "Selling Terms" case from the viewpoint of industry also
Transcript of Hearing, pages 134-162.)
The other trade practice -orovisions 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 PUBLIC 1aJUIIUG TO APPROVAL
Eight days after the hearing, the following letter indicated that
final drafting was to be plain sailing, for while it was admitted there
were still one or two important matters in controversy, Mr. Mittenthal
expressed the belief that all were pretty much in agreement. It is un-
fortunate the modifications referred to in this letter cannot be found
in the files, but the Administretion's then proposed "set up" for the Code
Authority is to be found on nage 6, part 7, Exhibit A.
New York, N. Y.
December 16, 1933.
Mr. James Worthy, Deputy Administrator,
National Recovery Administration,
Commerce Building,
Washington, D. C.
Dear Mr. Worthy: -
After a number of conferences had with the National Association of Leather
Handbag Manufacturers, and other interested parties in our code, I find that
we are agreed upon practically everything in the code as it was rewritten
in your draft of December 12, with these few exceptions.
We all urgently request modifications of the following articles, in order
that they may be clarified and prevent the unscrupulous manufacturer from
evading the fair trade practice rules. In most articles the addition or
commission of even a single word may make the entire trade practice rules
innocuous, and by requesting theseslight modifications, we are seeking to
protect the interests of all the manufacturers against the chislers.
I am enclosing a copy of these suggested modifications with a few comments
setting forth the reasons for these. Of course, there is a great deal
more than I could add to prove the necessity for these changes.
There still remains the two main controversial matters that cannot be en-
tirely agreed upon, namely the Code Authority, and the classification of
basic rate.
I still feel that the Code Authority as suggested by the administration is
fair to all parties concerned. It is true thap.t the Associated Handbag
Industries of America feels that it should have been accorded more re-
presentation, however, they will accept the Code Authority as set up in
your draft of December 12 as fair and equitable, and I see no reason why
the National Association of Leather Handbag Y'anufacturers, should not do
the same.
-26-
The Industrial Council still clings to the hon-oe that classification of
basic rates can be included in the Coae, n-oprticularly since the Millinery
Code has just come out with such classifications. However, I. believe
that if you will again assure them that it cannot be done, they will
accept this as final.
I have lo-rned that the national Association of Leather Handbag Panufac-
turers, has objected very strenuously to the interpretation of the Metro-
politan Area, and that they are requesting a change from thirty-five miles
to fifteen miles from Columbus Circle.
I think this could be accorded them withoutt any serious objection on the
part of the other groups.
7ith the modifications granted and the controversial matters compromised,
there is nothing' really left in dispute and there is nothing further in
the way of the Code being arnroved.
Very truly yours,
A. Mittenthal:ABJ
Unfortunately those hopes were not altogether well founded for on
December 28th, 1933 a telegram was sent to Mr. A. I'ittenthal calling for
a conference with the Division Administrator on the matter of selling terms
and still later other wires sent calling for other conferences. See
following.
CO] d CE
JCW: G INDUSTRIAL RECOVERY
4320
DECEI.3R 28, 1933
MR. i iITTEHITHAL
ASSOCIATED HAINDBAG INDUSTRIES OF AMERICA IIIC
303 FIFTH AVENUE
NE74 YORK CITY
IF CONVENIT TO YOU 7ILL ARRANGE APPOINTMENT WITH WHITESIDE FOR
TUESDAY NEXT 77EEK RE HANDBAG DISCOUNTS HAVE SI ALL DELEGATION OILY IN-
CLUDING YOURSELF BURK'OWITZ AMD PERHAPS OIE OTHER PERSON SEASONS GREETINGS
JAIIES C WORTHY
ASSISTANT DEPUTY ADNINI STRATO0
DIVISION FOUR
. 9811
-27-
WESTERN UNION
1933 DEC 29 PMH. 9 59
NA 1284 21 NL NE7 Y01I' NY 29
DR EARL DEAN HOWARD
DEPUTY ADLINISTIATOR NATIO1KAL RrCOVWRY
ADTIITISTRA.TION COc:i-RCI BLDG WAS.: DC
7ILL BE IN 7AS}iII:GT01I UEDiLESDAY FOR APPOINTI:EET .7ITH ADMINISTRATOR
WHITESIDE PLEASE TELEGRAPH HOUR OF APPOINTi EIIT BEXOWITZ SCHLESING
AND L.0SESSON WILL ATTEI)
A .ITTEITTHAL
COI.';ET1CE
JCW:G INDUSTRIAL RECOVERY
4320
COUiHFIBiATION SHEET
THES:ATTC;:AL RECOVERY AD:TIKISTRATION, COMMERCE BUILDI'IG, SENT YOU A TELE-
GRAM THIS DATE, OF WHICHH THE FOLLOWING IS A CORRECT COPY:
JAIUARY 10, 1934
IRA ROSENZWEIG PRESIDEIiT
NATIONAL ASSN LADIES HANDBAG I.'FRS
1182 BROADWAY
NEW YORK CITY
CONFERENCE ON HANDBAG CODE CALLED TEN A0 FRIDAY ROOM FORTYTHREE
TWENTY DEPARTLIETT C0i:-ERCE EXPECT TO 1AKE FINAL DECISIONS REGARDING
CONTENTS OF CODE IMPORTANT THAT YOU BE PRESENT WIRE REPLY
JAMES C WORTHY
ASSISTANT DEPUTY ADMINISTRATOR
SAME AS ABOVE TO:
Julius Michel, 501 7th Ave., N.Y.C.
Michel R. Bienen, 307 Fifth Ave., N.Y.C.
Irving Schoenholz, 56 Test 35th St., N.Y.C.
Abraham Iittenthal, .1115 Broadway, N.Y.C.
Morris Immerman, 30 East 33rd. St., N.Y.C.
H. Burstein, 325 Fifth Ave,, N.Y.C.
S. R. Goldsmith, 38-7est 32nd St., N.Y.C.
9811
-28-
L. S. -ettels, 303 Fifth Ave., IT.Y.C.
Iilton Lefcort, 130 Test 3lst St., TI.Y.C.
T'aurice Aarenvu, 14 7est `2nd St., N.Y.C.
H. !'argolin & Co., 1237 Broadry., 1.Y.C.
Sol rutterperl, 330 Fifth Ave., N.Y.C.
George 1Teyers, 1133 Broadway, N.Y.C.
I. Schlesinger, 270 Broad-ay, N.Y.C.
E. 1<. Luce, 320 rest Adams St., Chicago, Ill.
It will be seen thit with the exception of. the first there is not any
indication as to the particular phases of the.code tlipt were to be dis-
cussed.
Following these conferences it become '.nown that a finished document
had been prepared and, was awaiting signature for immediately there came
in a flood 3f protests, I quote a few only, taken from the files, for all
are pretty much of the ssne tenor opposition to representation, terms
discounts and wages.
POSTAL TELEGRAPH
T.A 714 384 IlL 5 Extra 1934 Feb 9 P; 7 42
RK iE7. YORK NY 9
COLO.-EL ROBERT LEA
DEPUTY ADLIINISTRATOR OF IIDUSTPY DEPT OF C01MI BLDG WASH DC
RE CODE COVERING, LADIES HAiDBAG IifDUST1.Y THIS 7IRE TO CO0TFITM TELEPHONIC
CONVERSATION OF TODAY STOP '7E PRPRrSEi:T THE NATIONAL ASSOCIATION OF LADII
HANDBAG MjAIUIFACTURERS STOP PAPERS ON :'ILE WILL INDICATE MEMBERSHIPP ETC O0
THIS ASSOCIATION STOP WE UIDERSTA:.D COD'_ HAS BEEN DRAFTED BY DEPUTY AND
ADVISORS AND IS aBOUT TO B3E SUBMITTED TO YOU FOR APPROVAL STOP SINCE
SUBMISSION OF CODE TO COVEr. THIS INDUSTRY THIS ASSOCIATION HAS CONTENDED
AND STILL CONTENDS THAT THE SPONSORS OF THE CODE ARE NOT TRULY REPRESENTS
OF INDUSTRY STOP THE !IIBERS OF THIS ASSOCIATION REPRESEI'T N:T LESS THAN
HALF THE VCLUIE OF BUSINESS.D01TE BY THE EiITIRE INDUSTRY ATD EMPLOY
CO 0NIDERABLY I.:0:E THAN HALF OF ALL 7;ORKERS EIIGAGED THE-EIN STOP THE ISSUI
7ITH RESPECT TO rLEPRESENTATION HAS BE2N TENDERED RIGHT ALONG AND DIRECTLY
AT THE PUBLIC HEkRING BUT HAS NEVER BEEN PASSED UPON AID E BELIEVE NO
ADEQUATE INVESTIGATION IN THAT DIRECTION HAS BETN MADE STOP 7E HAVE
LEARNED BUT ONLY FROi; THE PUBLIC PRESS THAT T'ITHIN THE LAST `EEK CONFERENCE
HAVE BEL HELD AT '7ASHI'GTOI RELATIVE TO THIS CODE ATTENDED ONLY BY PARTII
AiD ASSOCIATIONS -HOSE INTERESTS ARE ADVERSE AND IN DIRECT CONFLICT t7ITH
THOSE OF THE 1.KZBERS OF THIS ASSOCIATION STOP WE WERE'NOT IIVITED TO
PARTICIPATE IN THESE CO'ZFRE;:CES STOP THE EIGHTEEN DOLLAR OR FORTY-
FIVE CENT PER HOUR !:INII.JUM WAGE.FROyVSIONS IN. THE PROPOSED CODE REPRESENT
THE D.:A!MDS OF NE7 YORK ILAJFAQTUREFS AND THE IINTERNIATtONAL POCKETBOOK
WOR.1_ERS UliIO1! AiD 7ILL PROVE DESTRUCTIVE TO A LARGE NM.BER OF THIS
ASSOCIATION 'ITH PLAIITS LOCATED: OUTSIDE OF THE NEWI Y6RK CITY AREA STOP
THESE WAGE PROVISIONS WERE IIICORPORATED .WITHOUT ANY .APPROPRIATE SURVEY
OR INVESTIGATION TO ASCERTAIN WHETHER OR NOT THEY ARE FAIR AIM EQUITABLE
TO THE OUT OF TOWN I.IANUFACTURERS AFFECTED THEREBY STOP THE CONTROL OF TIE3
CODE AUTHORITY IS PLACED IN THE AIDS OF ITEW YORK LiANUFACTURERS AND THOSE
9811
-29-
IN CONTRACTUAL RELATIONSHIP ":ITH INTERNATIONAL POCKETBOOK ORDERSS UNION
WHOSE INTERESTS SO FAR AS LABOR IS CON!CERED ARE IDENTICAL ATD ADVERSE
TO TH3 OUT OF TON LMI.AUJFACTTURE'S STOP WE WANT TO GO ON R7COP1D AS OPPOSING
THE EIGHTEEN DOLLAR OR FORTY-FIVE CE1T PER HOUR MIINIT-I WAGE PROVISIONS
CONTAINED IN THE PROPOSED CODE AND THE PROPOSED CONSTITUTION OF THE CODE
AUTHORITY AMD ASK FOR FURTHER HEARING WITH RESPECT TO THE MATTERS COVER
BY THIS TELEGRAMi
SCHLESINGER & KIINSKIY 270 BROADWAY NT! YORK CITY
DA'-' LETTER
February 10, 1934
Colonel Robert Lea
Deputy Administrator of Industry
Department of Cc.imerce Building
Washington, D. C.
Re Ladies Handbag Code STOP Our wire last night was based on
telegram received from James C. Worthy Deputy Administrator STOP We
have just received copy of latest proposed Code STOP In the previous pro-
posed Code prepared by the Administration the Associated Handbag Industries
of America Inc was given a representation of three members on the Code
Authority STOP The Industrial Council of America one and the National
Association of Ladies HT-ndbpEg manufacturers three STOP Even to this ap-
portionment we objected and novr we find that without our consent without
notice to us and without being heard with respect thereto the proposed
Code forwarded to us allots to the Associated Handbag Industries of America
five representatives and to the Industrial Council of America two and to
the Association that we represent also two although the members of this
Association do at least one half the volume of business of the entire in-
dustry and we employ more thqn one half the wor-ers enfr~ed STOP 7We
again ask that all definite action with respect to this Code be postponed
until the members of the -.Tptional Association of Ladies Handbag Fanufac-
turers have been afforded a further opportunity to be fully heard
SCfLESI1,,GER & KRIITSKY
Attorneys for National Association
of Ladies TTandbag Manufacturers
GOLDSI.'ITH BROTHEEIS
E.nnufacturers of Lndies' Hand. ngs
38-40 West 32nd Street
ye:'. York City
February 14, 1934.
nationall Recovery Administra.tin,
Colonel Robert Lea,
Deputy Administrator of Industrr,
Department of Commerce Building,
7ashington, D. C.
Dear Colonel Lea;
We wish to enter with you our oDotest against the Code of Fair
Competition for the Ladies1 'handbag Industry, as submitted to you in
its present form, in view of the fact that the Code as written is benefi-
cial to the certain few of the 'Tew York manufacturers.
e bse our protest on the follow-in., and rrhich we ho-oe and have
no doubt'that in view of your fairness will gi-e it every consideration:
Statistics rill confirm our contention that seventy percent of the
handbags manufactured in the United Sta.tes are riade outside of Ne" York,
and only a small portion of hanncdbags are nide in TTew York City, namely,
the high style and high priced bngs, where a few dollars a week more to
an employee does not hurt the price of the unit in any way. The manu-
facturers, who are in Yew York must have skilled helo with many years
experience in order to manufacture their lines. Today, out-of-town
manufacturers find it very difficult to compete with ?ew York manufac-
turers mailing the same type of merchandise, dup to the increase in wages
made by the out-of-town manufacturers, namely, about 601, which is made
up in the shortening of hours and the minimum scale und.r which the 1'A
permits you to operate.
We were obliged, in order to coonorate with the President's 'Emergenc;
Fedcsures, to advance our help who were receiving t8.00 and .9.00 a week
to .12.0C per weok, and those getting $12.00 per we, k and over were ad-
vanced proportionately, as also their hours of labor shortened to conform.
with the N. R. A. thereby adding many additional help to our payroll.
ToWe estimate that the out-of-town manufacturers emnloy approximately
10,000 workers whereas the Ncr York manufacturers employ approximately
2,000.
9811
-,In
-31-
The out-of-town manufacturers must continually each new help
the art of making bags, thereby incurring tremendous expense to the
manufacturer, and the ITe York manufacturers, according to the code
submitted to you, ask you to have us pay the same amount to our em-
Dloyees, who, as stated above, must be taught the business from the
beginning as against the ITer York Manufacturers' employees who have
a number of years of experience, as the Union membership in New York
has been closed many years for learners.
We are employing in our plant approximately five hundred
People. Would it be, and would we be justified in shutting down
our plant and the five hundred families supported thereby become
public charges in order to satisfy a very small percentage of the
industry?
If the code is adopted in its present form, we will have
no other alternative than to move our plant back to New York, which
we might mention (is the'sole object of the New York Union) thereby
ruining the thousands of families 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 expense involved in the continual travel of their De-
signing Staffs to the Ne. York market. Trucking expenses add mat-
erially 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 -peoDle to our payroll. And, the many other incidental items
which add greatly to the cost of manufacturing out of the New York
market.
In conclusion, we again wish to voice our protest of the Code
in its present form, and as above stated, that if the Code is signed
as it is now written, bags will not be able to be manufactured out-
of-town and manufacturers will be obliged, in order to profitably
compete with INew York manufacturers, move their plants back to New
york, or else go out of business entirely, as the ITew York market
does not have enough skilled labor to take care of the entire in-
dustry and learners have not been permitted in the Union for sever-
al years.
Yours very truly
GOLDS !ITH BROTHERS
MANJFACTURIITG CO., INC.
LJB FB
P.S. Whereas we no"- employ over five hundred in our plant, if
we were to move back to New York we would only need approximately
two hundred to produce the same amount of units.
9811
WESTERN UNION
1934 FEB 15 PM 10 18
001375 50 NL WIAUKESITA WIS 15
COL ROBERT LEA -
LEATHER DUPUTY ADMINISTRATOR WASH DC -
VERY MUCH OPPOSED TO CONTROL OF HANDBAG INDUSTRY BEING
INVESTED IN HAND OF ONLY UNIONIZED MANUFACTURERS IN
NEW YORK STOP DUE TO GREAT DIFFERENCES IN CLASSES OF
LABOR BETWEEN NEW YORK AND MIDWEST A HOVE OF THIS KIND
WOULD FORCE US TO DISCONTINUE OPERATION STOP \iE PLEAD
FOR CONSIDERATION OF THESE CONDITIONS-
MASTERCRAFT LEATH-R GOODS INC.
POSTAL TELEGRAPH
1934 I1AR 21 PM 3 27
WB48 DL 5 EXTRA-RK NEW YORK NY 21 219P
GEN HUGH S JOHNSON
DEPT OF COMMERCE BLDG -
RE LADIES HANDBAG CODE STOP THIS ASSOCIATION AT A
MEETING LAST NIGHT ADOPTED A RESOLUTION EXPRESSING ITS
DISAPPROVAL OF THE PROVISIONS OF THE CODE WITH RESPECT
TO THE CODE AUTHORITY STOP IT IS THE OPINION OF THIS
ASSOCIATION THAT THE MATTER OF REPRESENTATION OF THE
CODE AUTHORITY HAS NOT BEEN DISPOSED OF OJT ATEQWITABLE
BASIS AND THAT THE QUESTION AS TO "WHETHER THE SPONSORS ARE
TRULY REPRESENTATIVE OF THE INDUSTRY HAS NEVER BEEN
ADEQUATELY INVESTIGATED TO JUSTIFY THE CODE PROVISIONS
STOP WE HAVE CONTENDED SINCE THE SUBMISSION OF THE CODE THAT
THE SPONSORS ARE NOT REPRESENTATIVE OF THE INDUSTRY
AS THE PAPERS ON FILE WILL INDICATE 'STOP IT IS
OUR WISH TO COOPERATE WITH THE 'ADMINISTRATION BUT '."E
FEEL THAT NEITHER THE SPIRIT I1OR THE LETTER OF THE RE-
COVERY ACT HAS BEENIT FOLLOWED IN CON1TECTION WITH THE DES-
IGNATION OF THE CODE AUTHORITY AND RESPECTFULLY ASK
FOR AN IMMEDIATE HEARING OF THIS MATTER AT '..HICH ALL
INTERESTED PARTIES 1,AY SUBMIT FACTS AND FIGURES PRIOR TO
THE EFFECTIVE DATE OF THE CODE -
THE NATIONAL ASSOCIATION OF LADIES HANDBAG MANUFACTURERS
270 BROADWAY NEW YORK CITY.
9811
-32-
-33-
N IGHT LETTER
February 8, 1934
Miss Frances H. Robinson
c/o General Hugh S. Johnson
Department of Commerce Building
Washington, D.C.
AS FOPJIER LIEUTETAITT COLONEL AGD UIDER MCCAIN AID HARRIS
I RESPECTFULLY PRQUEST THE FOLLO'!I.TG I.ESSAGE JE DELIVERED
WITHOUT DFLUY TO GETRAL JO-TSOIT QUOTE ,.ETAILTRS CAN NOT
KEEP PRICES DO..I ON LADIES "-A1DBAGS AS YOU B7SEI-CHED
THEM AT OUR COIVEITTION IF YOU Ui.1.ITTIITGLY CONDOIFE A
NEEDLESS HIDDEII PRICE IIICREASE 3Y APPROVING A CODE WHICH
IS II.TE1DED TO EXACT A PROFIT OF TWO MILLION DOLLARS FROM
CONSU'[ERS IN A FORTY MILLION VOLIE IITDUSTRY TiROUGH A
REDUCTION IN THE PREVAILING CASH DISCOUNT OF EIGHT
PERCEITT TO THREE PIERCE { T SINCE THE CODE PROPO1EiTS HAVE
NOT AGREED TO A COVEPE1ISATING REDUCTION IN WHOLESALE PRICES
OF THEIR PRODUCT STOP IF CODE I'UST BE APPROVED TECO1i1END
A STAY OF DISCOUNT PROVISION UNTIL COMMITTEE OF PROIITE'iTT
RETAILERS CONSISTING OF MESSRS ROTHSCHILD STRAUS REYBURP.
I1'ITTEU PRIDDAY AND OTHERS CAN PRESENT TO YOU OR YOUR
APPOINTEE FACTS THAT ',1E BELIEVE WILL FULLY JUSTIFY OUR
OPPOSITION TO PPRSEITT LOW DISCOUNT PROVISION STOP
WHITESIDES RECENT IITERJiiEDIATE REPORT TO YOU ON CAUSES
OF NEDLESS RETAIL PRICE INCREASES IT.TIONS REDUCTION OF
PREVAILING CASH DISCOUIVTS AS 01E OF THE IMPORTANT FACTORS
UNQUOTE
P. J. Reilly
I.ember, Retailerst Protective Committee
National Retail Dry Goods Association
!
February 12, 1934
Mr., Irving C. Fox
National Retail Dry Goods Association
225 West.34th Street
New York, ,.Y.
Dear Mr. Fox:
This letter is in reply to yours of February 7, to General
Hugh S. Johnson.
The Code for the Ladies Handbag Industry has already
been recommended by me to the Administrator for aunroval.
As you already know, at the time of the He-ring, provis-
ions standardizing the discount at 3/10 E01.1 received very
thorough consideration.
9811
-34-
Moreover, a joint committee of manufacturers and
retailers under the chairmanship of lMr. Reyburn was
anupointed but unfortunately they were unable to come to
an agreement.
In order to break a deadlock which had existed for .
several weeks, I authorized the Deputy to proceed in,
drafting a Code which woald be satisfactory to the-manu-
facturers and which would contain the discount provision
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. Whiteside,
Division Administrator.-
INGBER & CO1PAJNY
I MANUFACTURERS OF
FABRIC HAND BAGS -
1307-09-11 Market Street
Philadelohia, 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' Handbag Industry,
in which there will be an $18.00 minimum. We wish to
protest against the inclusion of this paragraph in the Code
for the following reason, which we believe applies to every.
manufacturer outside of Ne." 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 skilled help that they have. Most
all mechanics tn New York haye* been in this Industry at least
five or six years. The main reason being that the International
9811
-35-
Pocketbook Union, with whom the New York Manufacturers are
in contraction, does not permit them to take on any new
help. For the last few years, there has been an over
supply of help in this trade, due to the depression. Be-
sides that, we are compelled to buy our goods in WJew York, as
that is the market -olace. and maintain an office in New York
for the sale of goods, as buyers will not go outside of New
York to purchase. To maintain a New York office, and ship
everything to New York City and East of New York ore-aid to
New York, also entails an expense. Coupling this with the
average out of town help, which is usually not as skilled as
New York, we are at a disadvantage.
Besides, ITe- York City has what is kno-m as a Clearing
House for workers When they need ten extra framers for
a day, they can phone to the local office, and this is done
for any other department. Whereas when they take help out
of town, nnd lay them off when they don't need them, they
thereby stand a chance of losing them, because they usually
drift into another trade. It therefore neans that br the
time we weed additional hel-o, we have to start training
them again.
To avoid this, we try to keep them on. If a framer
has no work, we give him something else to do, and do
likewise in any other department. This is how we manage
to keep them, although there is a loss in doing so.
For example, this is what happened to our Company:
During the latter part of August, 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 about six months. The National
Labor Board, who was instrumental in settling the strike,
asked us to make all employees back, which we did. Sufficient
proof can be furnished that we are not discrimination :, and are
dividing the work as evenly as possible between the exper-
ienced and inexperienced help. We believe this is what the
Government wants. To keep everybody busy instead of a full
week to some and nothing to others.
From the above facts, you can readily understand that
if an $18.00 minimum is put into the Code, we will Drobably
be forced to shut down, or else eliminate all inexperienced
workers. We know the Government does not have this ouroose
in mind, as it would mean so many more people to resort to
charity. Therefore, we-protest against the insertion of this
clause in the Code, and as mentioned before, we believe that
if it should be enforced, we would have to close the plant
and move to New York, where it will be possible to do
business under the Code,
Now what is to haDoen to the people in Philadelhia?
Our com-nany is employing about two hundred to two hundred and
S 9811
-36-
ten people, and the rest of the Industry in Philadelphia is employing
about one hundred and seventy-five. Considering the families dependent
on these People's ages, it would necessitate about twelve hundred
additional people going to the Relief Board.
We are awaiting advice whether or not yrou %7ill have a meeting in
Washington on Wednesday or Thursday of this 'cek. If so, -.e expect
to be there to lodge our protest in person.
7e hope it will hot be necessary to put this Industry in Philadelphi
out of business.
Yours very truly,
IITGBER & COMLPAITY
(Signed) D. A. INGBER, President
[WESTUT UNION
(02)
KA 423 101 NL 1 EXTRA JOPLIN MO 14
GENERAL HUGH S. JOHRTSON -
ITRA ADI-IIISTRATOR WASH D C -
THE LADIES HAITD BAG CODE -ECENITLY PLACED IN YOUR HANDS FOR APPROVAL
IS VERY UNFITAIR TO US AS A SMALL TOWN AU UFAC URER IT CONTAINS NO WAGE
DIFFE--,i:TIAL AND LITTLE COTSIDEPATION FOR THE ACTUAL CONDITIONS SURROUNDI
US AS AN ISOLATED MANUFACTURER WONT YOU BEFORE DECIDING ON THIS COE3 PLEA
REVIEW OUR BRIEFS AID) CORRESPONDENCE IN THE FILES OF DR. HOWARD AND MR J
WORTHY ASSISTANTT DEPUTY ADI.IIISTRATOR WE EMPLOY ONIE HUNDRED FIFTY TO TH3E
HUNDRED PEOPLE WHO WILL BE WITHOUT EIPLOYEINT IF WE ARE FORCED OUT OF
BUSIIIESS WHICH IS ALMOST SURE IF CODE AS NQ0 WRITTEN IS PUT THROUGH.
THE MEIER C01PANITY INC
C I73 ER PRES
WESTERN UNION
VP 138 5 1 XU PV NEW YORK NY 14 526P
HUGH S JOHNSON, ADLIIITISTRATOR
CAPE OF LISS ROBIiTSON DEPT OF COMiRCE
COREY IEZER ONE OF OUR MI ISSOURI LiANUrACTURERS WILL BE GREATLY INJURED BY
NO WAGE DIFFER-ETTIAL HAND BAG CODE HE HAS SUBMITTED BRIEF TO HOWARD BUJT
HAS 110 UORD rLGARDI1G IT STOP APPRECIATE GREATLY IF YOU WILL HAVE SOME01
WIRE &E LAMBERT C0.LPAITY TWO FIFTY PARK AVENUE NEW YORK WHAT STEPS CAN BE I
TAKEN-
ROBERT L. LUND (03)
9811
-37-
WESTERN U1.TNION
1934 FEB 15 PM 6 11
QB 604 135 NL 5 EXTRA 1.IIAI.II FLA 15
COL01,EL ROBERT LEA DEPUTY ADIIiTISTR',TOR IITDUSTRY-
WASH O -
INFORLIATIOIT LEADS US TO BELIEVE FOURTEEN DOLLAR I.ITIJIUl, WAGE FOR IMITATIONS
LEATHER WORKERS EHINEINT STOP ,E ARE OPPOSED TO THAT LiINIMIU.I AS IT 1IEAIiS
IMiv]EDIA-E CLOSING OF OUR PLANT E.IPLOYING APPROXIMATELY HUNDRED PEOPLE STOP
NINETY PERC.IET OUR WO7RY-RS IIT7LERIE7CED AiND IF THIS CODE IS ADOPTED IT WILL
POSITIVELY THROW THEI.i ALL OUT OF WORK IN FACT OUR DIRECTORS HAVE SERIOUSLY
CONSIDERED CLOSING THE PLANT AS rE CAITiTOT ILIANUFACTURE OUR ilERCHAIIDISE
ON PROFITABLE BASIS UNDER PRESENT NRA CODE STOP EI.IPLOYEES WORKING IN
OUR PLAUT APE WELL ABLE TO SUSTAINII THEMSELVES AID ARE TPRSEi.INDDUSLY THAITKFUL
FOR OPPORPTUTITY TO BE ABLE TO DO SO STOP PRESENT CODE MAY AND ADOPTION
OF FOURTEEN DOLLAR -.IINIlU.u WILL MAI IT CONCLUSIVELY NECESSARY FOR OUR
PLANT TO CLOSE AND I.IATY OTHERS THROUGHOUT THE COUNTRY LOCATED GEOGRAPH-
ICALLY SII.ILAR -
HARRY I MAGID VICE PRES STYLE CRAFT BAG CO INC
HERZ AND KORY
Makers of
LITTLELADY CHILDREN'S & :.ISSESS BAGS
230 Pine Street
WILLIAMSPORT, PA
February 16, 1934
Colonel Robert Lea
Dear Sir
We have just been informed that the ladies handbag code contains
a minimum wage proposal of 18 per week and wish to say that if same is
adopted will necessitate our removal to New York City, as ie would be
unable to compete, considering all other disadvantages and extra ex-
penses.
Yours resp.
HERZ AND COMPANY
-38-
J-nuary 5, 19Y4 De-uty Ir,..l Dea.. toward writi-i., the following
mcmorr-..idii to Division Aijni.:istr;itor A. D. W7hiteside was evidently
incli.icd to LErce with two of his advisors thrt the rmanjority faction
should meet with the Administrator and write a Code based unon the
Division AdAinistrator's ultimatum viz:
A "a,.e minimum not to exceed ($18) eightec.n dollars "er week and a
discount provision of 3',.
1-2-34'.
I.;r. A. D. Whiteside
Earl Dean Howard
Messrs. Eillma-:i and 3url:ow.itz, Labor and Industrial
Advisers, respectively, on the -.rbao Code have )etitioned
me in the matter of the deadlock on that code.
They are convinced that the atteim-t to '.ct -n arree-
ment between the two factions in the industry has entirely
failed since the last nro-osition to arbitrate their
differences has been rnfused by the minority.
They therefore recornie:n'd that we authorize the major-
i- faction, consistin. of at least seventyr-five per cent
of the industry, to ,ieet with the Deputy and -.dvisers and
formulate a code on the basis of your ultimatum -o them,
n'.mic-ly: two wa e minima not to exceed eihteen dollars
per week and discount -r'ovision of three er cent.
Mr. Hillmn-I is not satisfied with the wa.,e *.-:id hour
provisions of the code submitted by the majority, but there
is no doubt that these differences can be reconciled if ve
hold the conference which they recommend. This would involve
a decision on your -,art to aP-rove a code against rhich there
was a minority on-)osition of probably twenty-five -)er cent.
Ea-r1 Dea.I Howard
Deputy Administrptor
On this memorandu.i are to be found question narl-s against
the fibu'res quoted in the second line of third -arara-)h and the
last two lines of the l-st iar..a--.. At the bottom is also a -encile
9811
I
-39-
presumably made by the Division Administrator, A. D. Thiteside, and
in view of the conflicting claims made by the Trade Association
one can well understand his doabt of accuracy of statements.
All of that month and through February and March, the battle
raged and sporadic references are to be found in the general files
to meetings with the Division Administrator, the Deputy, the re-
presentatives of the Labor Advisory Board and Colonel Lea. Fol-
lowing what appeared to hpve been the rule, insofar as this Code
wps concerned, no record was made of these conferences but from want
I rec:ill it seemed as if each faction was determined to rule or
ruin, and could not or would not agree on the disputed points.
A comparison of the dr-ift submitted at the hearing (see pages
270 to 285 transcript of Public Hearing) with the approved code
gives light upon what must have been the subject matter of the
various meetinigs. I auote in the following the major points at
issue:
Proposed Code: Article II Definitions not sufficiently
clear, and without reservation, all em-
bracing.
Approved Code: Article II Definition clarified more specific.
Proposed Code: Article III 40 hours in any one week and
not in excess of 8 in any 24 hour period
for factory and office help.
Approved Code: Article III 40 hours per week except that shipping,
clerical or office forces were to average 48 hours
over a monthly period.
Proposed Code: Article IV 351 per hour for greater New
York, 30 outside New York area.
Approved Code: Article IV A flat 350 rate per hour.
Proposed Code: Semi-skilled not provided for.
A-oproved Code: Provides for seuai-skilled at 45 per hour rate.
(Stayed in order of approval)
Pro-osed Code: Leaners to be paid not less than 80% of
minimum wages and must not exceed 15% of
total number of employees..
Approved Code: The Administrator may under exceptional circumstan-
ces permit employment of learners.
Pronoosed Code: Classification None.
Approved Code; Section 6 provides that uoon recommendation by the
Code Authority and after full study the Administrator
9811
-40-
may establish basic rates for the more
skilled classes of employees.
Proposed Code: Article VI Administration provides
Code Authority of eleven (I1) to be
selected by various associations.
Approved Code: Article VI Administration provides eleven
(11) selected from industry:
5 by Associated
2 by National Associption
2 by Industrial Council
1 by Midwest Association
1'.by"Pacific.Coart: .Manifacturers
1 by Labor Advisory Board.
Trade Practice Provisions were essentially the same.
It will be noted that the "age provisions uonroved were a com-
promise and as already stated became a fester s-pot and -orovocative of
great dissension and widened the rift between lbor and manufacturer.
It will also be noted that representation provided in Article
VI of approved code is auite different from the one contained in draft
used at the public hearing and revised immediately thereafter (Exhibit
A, part 7, page 6; part 8, page 4.)
The Code was approved by the various Boards without comment
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 -oolicy it would seem
wise to eliminate this provision.'
*
He further points out that the discount provision might be the
cause of much criticism unless it conforms closely with the well es-
tablished practice of the industry.
(See Exhibit E paragraph "Comnents Section 2", Section 12)
It was forwarded by Deputy Earl Dean Howard iiarch 5, 1934
to the Administrator for his approval.
3. Date of Aopproval
The Code was approved March 14, 1934 under Admin-
istrative Order 332-1 and became effective under Article
XII of the Code on the second Monday after approval by
the President.
4. Conditions in Order of Ap-oroval: Industry Reaction
The Order of Approval provided:
"1. That Section 2 of Article IV be stayed until
9811
-41-
such time as the Code Authority shall present to
the Administrator a definition of the term 'semi-
skilled employeet, which received the approval of
the Administrator."
The two subjects, semi-skilled and classification while
treated in the Code as separate and distinct matters, semi-
skilled in Section 2 and classification in Section 6 of
Article IV approved code, are in effect mrt and parcel of
e.ch other.
There is no documentary evidence in the files which
indicates when Section 2 of Article IV was written into the
approved Code. Certainly it.was not in the various sub-
mitted drafts or a subject of discussion at the Public
Hearing, although referred to .by industry in the Public
Hearing. (See pages 191-196 Transcript of Hearing, Decem-
ber 8, 1933.)
However in the drafts of Novenber and December there
appears a Drovision for basic wages. (See Exhibit A, Dart 5,
paragraph 5, page 3; part 6,Daragranh 5, page 3; part 7,
paragraph 5, page 3; part 8, paragraph 5, page 2.
Since labor was so insistent that classification be
included in the wage provisions (See Transcript first
Hearing, December 8, 1933 pages 61-65) and since the non-
unionized portion of industry who did not classify their
workers as is done in union agreements, following the sec-
tion system, (oage 3, paragraph 1 Appendix G) seriously
objected to its inclusion in the Code, and further that an
examination of Union Agreements 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 that the term "semi-skilled" does not appear to
have been used in the industry but instead shows the use of
the term "Second class helpers", it is reasonable to sup-
pose that the Administration injected this clause as a com-
promise measure, providing however that the provision be
stayed until the Code Authority should present an accept-
able definition.
To sup-oort this conclusion is a statement by Code
Director ITittenthal made to the writer September llth,
1935 that since industry could not agree upon classifica-
tion He" York wanting and out-of-town opposed to its in-
clusion, the subject was referred by the Deputy, Dr. Earl
D. Howard, to Mr, Sidney Hillman of the Labor Advisory
Board. He told manufacturers, so- the Director states, that
he offered this clause and industry had better accede to
it or suffer a worse fate by having a code imnoosed upon
them by the Administrator.
The Director further states that Colonel Lea opposed
9R11
-42-
its inclusion on the ground that such a clause could not
be defined, satisfactorily at least, a4d would lead to
endless trouble. Colonel Lea was eventually won over hence
it found place in the -age -provisions.
Could ones foresight been as good as hindsight, the
provision never would have been made for it led, as stated
in the previous chanter, to endless discussion and friction
between the manufacturers themselves, r.nd made wider the
existing rift between labor and industry.
It was and is now ry firm belief that it is impossible
to justly determine where the line should fall as between
skilled and semi-skilled.
'hen months after it was made the subject of -public
hearings June to July 1934, (See Transcript of such), the
Assistant Se-outy David Barr and the Division Administrator
Sol Rosenblatt finding that no one could agree, drew an
order setting up a commission to study the industry (the
ex-oen-ise to be borne by iarustry) and make a finding. (See
Exhibit K, r,.m'es 22 to 25). Since industry would not con-
sent this order was hor'eve'r never consummated.
Proposals were then np.de by the Administrator to
vacate the stay in the c -5'r of approval and to amend the
section by deleting the term"semi-skilled" and the words
"made of any materials other than imitation leather".
On this the -ooint of l1 lity "as raised by the Deputy,
Colonel Harry Berry, to 7ho-i tle code was transferred in
August 1934, and J. G. Latimer," Division Counsel, rendered
an opinion (see Exhibit L) stating that such could not be
imposed over the objection of a majority of industry.
Colonel Berry and his Assistant, Mr. Leigh Ore,
Colonel Walter !!ann= succeeding Colonel Berry and his
Assistant, Mir. Dana Hill, made endless effort in the
succeeding tea months to settle'matters but without
success and there it rested when the curtain was rung down.
The order of rouroval also contained the following
provision: ( Paragraph 4 Order of Aporoval Code 332)
"2. That, in addition to other members of the Code
Authority, there may be appointed by the Administra-tor
S ,'r-lected by such method as he may prescribe, in his
discretion, not more thax three additional members with
voting privilege to be chosen from members of the In-
dustry who are not, in the opinion of the Administrator,
adequately represented on the Code Authority."
Industry itself having been unable to agree unoon the
constitution of a Code Authority, the Administrator found
9811
-45-
it necessary to write one that in his judgment would meet
the needs of the case. However, it is evident fearing it
might later be found in a disclosure of further data that
his conclusions were not 1011o correct the provision stated
above was written in the order. I think this was wise for
it later proved of value in the first steus taken toward
re-uniting this industry, .
Volunes A and B and General Files are filled with
petitions P&airlqst and protests from Ilembers of Industry,
Chambers of Corn erce, L.bor Unions, Retail Stores and Trade
Associations, not to forget lawyers tih-t "ere sent in dur-
ing the months of October, Hovember and December, 19 5 and
January and February, 1954.
The protests f,.ll into four n-jor groups, objections
to Discounts Lrbor Classification, lack of wage dif-
ferentials, representation.
Anpprently almost every one wvs exhausted ,by the
anoroval date f)r Out eight protestnts came forward under
Executive Order 620F. B, and these were heard in public
hearing May 7, 1934. The follo-ring Pre the names:
Hudson Leather Goods Inc., 11yack, ITew York
G. R. Godfrey Company, Gardner, IHassacnusetts
Paragon Irovelty Bag Comnany, Inc., Tlewburgh, flew York
Uneeda 2elt Comuany, lie-burgh, Hfew York
flewburgh Handbag Comuany, lewburgh, flew York
Licht & Kaiplan Inc., Ne'.vburgh, flew York
Strand Leather Goods Company, Inc., I'ew York City
Virginia Art Goods Studios Inc., Lynchburg, Virginia
There was doubt ss to the validity of the last named
protest, Virginia Art, but Division Administrator Rosenblatt
allowed them to be included in the public herring held May 7,
1934 before Assistant Deputy Worthy,-. (See Transcript Public
Hearing and vrith reference to action upon Virginia Art see
page 85 of same. Also see Appendir IA for digest of Protests.)
These .'rotc-:ts were CA st llo'.'ed in 0-( er. ITc. .32 -
5- 6 7 vith thie ex-cL,,tion of Vii iiila Art "'hich wa', n paDD'-
-*clA left in r-beyancc -1c. l thiii I 3holl trcat later.
9811
-44-
CODE ADi.I1ISTRATLIN
Or .-:2nizn-tion
Personnel
Field O --,nization
The Code Authority as a governing body
Budge t s.
Effect on Industry
9811
-45-
III. Code Administration
A. General Preliminary Discussion
Reading the foregoing chapters it was obviously difficult to
launch the new governing body, indeed it seemd for a time doubtful
if an organization meeting could be held. However, the first official
meeting was held, April 3rd, 1934. (See couy of telegram dated April 7,
1934, Exhibit N) Ferusel of the minutes of that meeting (General Files)
indicate that tro prior meetings were held 1Iarch 23rd and larch 29th, 1934.
As was to be-expected two distinct camps were evident, out of town
manufacturers sitting on one side of the Council table, New York placed
opposite. Tnat custom wrps followed until peace was declared in June 1934.
Labor representatives not having been appointed were not present.
The first business was that of election of officers and the
following were elected, remaining in office until expiration.
H. Schoenfeld Chairman
Sol Mutterpel Vice Chairman
George Mvleyers Treasurer
I. Schoenholz Secretary
Following, the Chairman and Code Directors (these last two in
number, then not officially appointed although agreed to by the Board)
were authorized to name committees to immediately consider the
important subject of:
Defining semi-skilled pursuant to Article IV, Section 2,
Report on HandicapDsd persons pursuant to Article IV,
Section 7 (e),
Provide Minimum Standards pursuant to Article V,
Section 6,
To study question of Homework pursuant to Article V,
Section 10,
To draw up Contractors agreement pursuant to Article V,
Section 12,
To draw up Constitution and By-Laws pursuant to Article VI,
Section 8 (b),
To provide coordination with related Codes pursuant
to Article VI, Section 8 (e),
Pl-nring and Fair Trade Practice pursuant to Article
Vi, Section 8 (g),
To draw up Uniform Cost System pursuant to Article VI,
Section 8 (i),
To provide regulations of Style Piracy pursuant to
Article VI, Section 8 (j),
To draw up Label Re-ulations pursuant to Article VII,
To draw up Regulations of Selling Below Cost pursuant
to Article VIII, Section 14,
Finance and Budget,
9811
-46-
This was a fairly comprehensive committee set up and later minutes
show that on the whole, appointed members'tock their v'ork seriously,
approached problems earnestly and intelligently, not sparing themselves
or their time. Oft tiaesthey worked long and late, vnillingly giving
up Saturday and holilays, and the A6;ministration member being present
at m sy of these Committee meetings can speak with knowledge as to
proceedings.
If we d-'ell upon this matter unduly it is that, although perhaps
unwittingly, the Division Administrator was unjust, in the charges
made by him at a public hearing held June 7th, 1934. He at that time
took occasion to c'enly rebuke the industry for lack oi diligence and
for not functioning as well, as caoEbly, as efficiently and as intel-
ligently as it could (see Transcript Public Hiearing June 7th, 1934,
pages 2 and 3).
These remarks had far reaching repercussions for the Code Authority
keenly felt their injustice and deduced that the Administrator and
his Assistant Deputy were irrevocably committed to labor regardless
of the verities, and were not to be trusted. Thus wPs still more
intensified the feeling between labor and manufpcturez, and the Ad-
ministration's problem in attempting to settle highly controversial
matters made more difficult.
At this first official Code Authority meeting it wvs decided that
a meeting of industry should be called so that it might look upon
its new Board and I was asked to be present and explain to industry
just w-hat the Code, if used properly and conscientiously, spelled for
them.
9811
-47-
SOL UTTEiPE:L, INC.
Ihanufacturers of
FA:'Ci" LEATHER GOODS
330 Fifth Avenue
New York
April 12th, 1934.
Mr. O.W. Fearson
New York City
Dear iMr. Fearsor:
This is a reminder that in your address to the .aanufrcturers this
evening, you do not overlook to emphasize strongly the absolute nec-
essity of adhering strictly to the code in order to derive the benefits
that it affords to everyone in the industry.
I suggest that you plead with them for their own interest to put a
stop immediately to the price war started since our code was signed.
This price-cutting now is '-'orse than ever before in the history of
our industry, <^nd that, on top of higher wages and shorter hours. Such
Action on the part of some unscrupulous manufacturers kills tne entire
morale of, the industry and defeats the very purpose of the Code.
Urger every one of them to have a little patience and courage until
the Code is put into operation. and with the assistance and cooperation
of all concerned, we will all get the benefit that the Code and the
entire Recovery Act offers.
Ask them not to weaken nor falter, but stand together like men who
have a perfect right and just claim to a legitimate and honorable exist-
ence in their business.
By doing this we will gain the respect of those we come in contact with
in our daily business dealings, and meet with much less resistance than
"i? do now, and at the same time eliminate the abuses that are heaped
upon us when we lack unity between ourselves and mistrust each other
with no good end to anyone, either to the manufacturer, retailer,
consumer or worker.
Sincerely yours,
/s/ Sol Mhtterpcrl.
9811
-48-
This I did and one of the larF'st pttendances kno'-n was had at the
McAlpine Hotel, eew York, inonuflrcturers coining in irom 11 parts of
the c.1untry. Tnis ,Letting was defiritely tht first step in consolidating
the warring elements and pacd a iart in thte pepce pact signed some
time later,
The effect of the ne"l code's "Terms" provision ws brought out at
both the Code Authority mcetin, one the latcr one of Industry, end it
developed that P Retail Buyers strike was thrertcned if recession from
the Codes Terms wvas not made. (See Exhibit I1. Section dated April 7.)
As the weeks passed feelings ran still higher, the old bu;aboo
"Rcpresentetion", always to the fore, preventing to o degree a sane
approach to problems from time to time prLs, ntcod. In May I found it
necessary to halt a Code Authority nmeting as uuch, and tackle the
questions underlying the re presentation problem. (see Exhibit ]- Section
dpted iL:a y 25) and few "e-E'-s I'ater decision "'Ps 'irde to unite all
trade associations into one.
Criticism of this move r-ps mpc'e by labor -s oeirg designed to
better fight the moot-sen'i-skilled-shortt-r hour Pnd clasEiiicntion
problems, losing, siacht of the frcet that the npnuf -cturers' side of
industry had still other bpttl,.s f,-cin_- tein anc' needed unity if they
were to rehabilitate themselves.
The Code Authority selected an d 1.at( L-lected t-o former members
of their or'n industry to heec up the Code Authority inpmchine. These
two men were unusually '-ell equipped for their vork, for in addition
to having a first hand knowledge of processes nrd materials used, an
understfndinn-of style, all important to an industry of this character,
an apreciation of the difficult cositior tie industry was in, nnd
knowing all the tricks of the tyade, had tact, r sy7!1rthy' with and
understanding of the 'ipnuiacturers s1ke--L- tnrt wrs to stpnd them in
good steal, in the troublous months heand. Tiapt thi.ir rccomolisr-minents
rere great is to be found in a reading o. maptripl cort:ined. in the
Complipnct and Generrl Files, for they -pleed an ii:iport'nt part in
bringing into and keeping recalcitrant me ibers in line.' (See Exhioit
Nv Section of June 6, 1934.)
To cite on particular instance, thpt oi01 Virginip Art Goods
Companywhere notable n'or-: v-s done, This coi.i p'ny referred to on
ppgt43of this history applied for exemption on "ht industry felt
was en unjust cleim. As pointtc out Vir'-inin stated they ha.d taken
no Part in the mckir:; of the Code and izere ertitlt.d to exemption under
b205 3. Industry denied that this was so, and v'hether so or not, the
company lived under a wpge scale based uton their claim for P differential
but which wps never authorized at least, formally oy the Administrator.
The Cook Directors acting upon the good counsel o0 Deputy ",;lter Mangum
finally visited the factory in Lyncnburg pnc thor.: developed that was
the basic trouble in m-kini- Vir.einip Art iEel their need for s differ-
ential. Their ooerstive irpctice was th.n capn :eco pnd tie co.-ippny was
brought into obedience. .ie shall have occasion totreat of this more
fully in a later chapter.
9811
-49-
It will thus be evident that the new body, anproaching its
nroL!..-s in 7,od spirit, Iaid out -, -airly comprehensive pro-rPmr and
no one, cEn with justice, chvrs- lrck of cili ence or conscientiousness
in tackling their problems. The strides made toward finding the
answers will be noted as r'e progress.
The two chief difficulties facing the Code Authority were
Representation and Labor relations, other questions were relatively
of minor Importance. Time w.s perhaps the principal factor necessary
in ironing o.t th.e question of fair representation. Of course common
horse sense hpd to be brought into play but since all tried to use
this, -e begPn to see as the months passed a disappearance of the
suspicions existing at the beginning and the Code Authority leading
the way, industry became united almost lUO percent, with one major
trade asEociation .xhich is today continuing and lookir- for the execu-
tion of a voluntary agreement. Hrd the governing body not approached
its problems as it did re would not today see the glimmer of light
leading toward a better state of affairs.
The second major difficulty, Labor Relations, proved to be our
greatest stunimbling block. On pages 14, lZ, .16,
of this history we have touched upon these briefly and it will be seen
vwhpt the surface reasons were that constantly kept the. problem at
boiling point. However, my own feeling is tnat they were secondary
and -contributory.
Years of soft living led to the same type of thinking and for
many years labor relations were purely those of the bargain counter.
'No one stopped to consider that the welfare of lauor did not begin and
end with bargaining over wages and hours, no one felt that labor was
an integral part of manufacturing, none cared as to conditions surround-
ing their factory employees. Naturally when a group is made to feel thay
are pariahs, demands are perhaps not always made with good sound sense
and are not based upon existing realities. Such, here as elsewhere
was the fundamental trouble with labor relations an6 the situation
obtaining was to be expected.
Complicating the matter still further w-s the internal condition
of the Pocket Book IMakers Union. Strife had existed for a long while,
finally resulting in a complete over tun. of the officials and the
turning over to, so it was stated, the Comnunists.
Further contributing to the situations complexity was a mistake,
that as Administration Member, I made. The appointed representative
of labor was a Phillip Lubliner a quite likable man, an official of
the union, and one who knew his business. He was not overly strong
physically and was faced with a possible serious operation, or so I
was told, and therefore asked me to urge the aproirtment of an alternate.
This I did, and in due time Mr. A. Stein, :4arnger of the Union appeared
on the scene. He was the direct opposite in type to Mr. Lubliner,
much inclined to bluster, given to name calling, not however in meetings
but afterwards, and generally objectionable in his manner. While
Mr. Lubliner was not a well man I came to the, conclusion that was used
9811
-50-
as a subtL-r'f c to have a second labor rerrestntative present, one
only voting. It wps realized thrt tnt alternate should only be
present vrhen the sitting member ras absent but it was not considered
wise to offer serious objection. This situation did not ma:e for a
peaceful anrcroacfi to questions involving labor aniL I fe, that all
drew a si.xh of relief when as a result of tne union election .uoset
a Mr. Laderman was appointed. He hobrever was not warmlyy welcomed for
it was definitely felt that he hpd the Coxmaunist tpint.
.With both labor and manufacturing groups torn with internal
strife it mpy be seen that it '-Fs difficult to i.nprove the relationship
between the two factoi-s, and in fnct at the end not ';iuch of accomplish-
ment in this direction may be creeit.-d to either side.
Subordinate to these two chief difficulties yet rprt of then was
the utter lack of factual knowltdge oossesscid by the industry. The
industry has been in existence for about filty years with never an
attempt made, prior to 1934, to gnthcr together any I-rcts respecting
itself and uron which both lpbor'ner industry might have formed some
just conclusions.
By Mafoy 1935 the basis of a statistical and. factual structure was
in existence and at the end we began to see something of p picture.
(See pages 6, 7, 8, 9, 10, 11, 12, ofthis history, also Exhibits
3, F page 1 G H -o prF 4 Section dated July 10, 1935.)
The matter of Home-ork ras a collateral part of the labor problem.
Prior to 1934 there was but a Vague idea of the question and of its
possible effect upon the industry. apy 1935 found completed a first study
that offered a partial solution of the question (See Exhibit 0 4
parts.)
Additional to the before mentioned problems 'as that of cost
figuring. It is safe to say that prior to 'the advent of the Code not
a baker's dozen had ever seriously considered a scientific or ordered
approach to this matter. In the first six months of 1935 great progress
was made in this direction and there was presented to the Administration
for consideration Exhibit P, a. plan which although never finally
approved indicated first steps at least taken toward the imposition
upon industry of a usable system that must in the end have helped
financial positions.
A constant thorn in the creative mpnufacturers' side was his
loss to Style Pir-cv, and for the first time a real attempt was mede
for possible solution of this problem. (See Exnibit Q.
Compliance with anything did not'exist before 1934 for no 'ne
had ever attempted to show a manufacturer the tolly of some of his
competitive practices. 'Strah.&e as it may seem in the light of this,
compliance presented no great problem for although at swords points
as they were, every one realized the need of rcme such instrument as a
code to put a stop to the foolishnesses practiced. Every one
9811
-51-
therefore welcomed the Code -nl' lImost ll believed they must make
or attempt to live up to it, not of course 100-o, that would have been
too much to expect from any humnn agAlre.?-tion but in the main they
did so. The well known chisler of coarse was always in the picture
out co^aorrd to other industries. of this type fe'- c.rie- to our attention.
Hour end wg'e corirlaints that rep:cned the Y.RL.A. were small in number
-nd trade practice violations almost non existent. (See Exhibit R.)
'* etings were many in number (see pages 56, 57, 58, .) ane invariably
long drr-,n out.
No industry member of the Board haed had previous knowledge of
nprlimFn-rtary procedure, hence protracted discussions and vociferous
beyond -'ords, and yet with all 'a keen desire to govern industry justly
Prd wisely.
In an earlier paragraph is listed the committees set up at the
first official meeting. The com-oosition of these groups was widely
made end reports in the appendix (See Exhibits C, G, H, K, 0, P, Q)
sho-- the thorough and painstpkin,- care exercised in deliberations.
Industry of course felt that "ith the coming of the new code era
miracless would occur and if our own procedure could have been quickened,
nfr- -ps seeming -airacles vould have come to pass. -Be that as it all
mnpv, certain it is, -'hen the end came, industry had begun to believe in
and feel that their Code Authority -"ere endeavoring to rebuild a newer
and better industrial view point, a truaer perspective and the horizon
hrd become clearer with promise of better things to come.
For those who did not live with the industry during the hectic days
of 1933 and 1934 it is difficult t understand just v'hat if anything of
a definite nature was accomplished by all the long drawn out noisy
meetings of this Board and of industry itself. ror that matterr I,
mnysel.f, find it had to put thu finger upon concrete things and say this
was started, reached this point, and was concluded'satisfactorily or
otherwise. Specific things were done as referred to above and found
in the appendix, but I feel the most important accompl-ishment of all
,as a rebuilding of the spirit, re-examination of values, a weighing
of position, and a clinching of the determination to fight 6n and win by
f-ir mepns. None of these can be or are put down in records of
mLetings, they are not always or perhaps'oiten expressed but living
'"ith it one 'feels it in the air, and that 'was the condition at the end as
against the early days of fighting and refusal to consider the other
fellow and all that that entails.
The memorandum written by the Administration memberr in July 1935
should, I think, be referred to (see Exhibit N, Section dated July 10,
1J35) for it gives a summary of this Code Authoritv's activities and
the picture s I saw, it.
B. 0r:Fnization
1. '.nile Article VI, Section 1 of the Code called for a Code
Authority of eleven (11) representatives of industry and the order of
9811
-52-
aDrovpl specified the bDoointment or election of three additional
members to be chosen from members of industry vho erec not in the
opinion of the Administrator adeqaptely represented but ten were
approved byr the order of September 6th, 1934 (Order 332-16). The
eleventh member was-to have been selected by the Lpdies Handbag
,ienufacturers of the Pacific Coast but Ppparently no association
existed, end as far as the Administration member knew manufacturers
from this region never communicated with the Code Authority nor
attempted to elect a 'enresentative. The Code provision in pArt.
follows:
"Five (5) members shall be selected by the Associated
Handbag Industries of America, Inc.
"Two (2) -nembers shall be selected by the National
Association oi Ladies Handbag larufpcturers
"T,-o (2) members shpll be selected br the Industrial
Council of Leather Goods manufacturers Inc.
"One (1) member shpll be selected b' the iiidvest
Handbag and Small Leather ares Association, Inc.
"One (1) member shall be selected by trie Ladies' Hendueg
Lianufpcturers of the Pacific Coast."
In addition to Industry Members provision was made for one
member to represent labor and such other additional members without
vote to represent such r-rouns or interests or such governmental
agencies and for such periods as the AdninistrFtor night designate.
Industry members were to be selected by and from the four active
associations (See paragraph 2 of Article VI of the Code above) and
in fact were elected, first by the several boards of governors and
ratified by the Associations.
One labor member, Phillip Lubliner, wrs rn-oointed Aoril 27th,
1934 (Order 33--2) but on account of ill-health ',Ps permitted to have
an alternate, Dissension breaking out in th. ranks of the Internatioh-
al Pocketbook makers Union, Mv!r. Luoliner and his alternate, Mr. A. Stein,
"ere superseded January 2nd, 1935 (Order 332-20) by Mr. I. Laderian.
The Administration member, O.1,. Peap son, serving vith the exception
of about t'o weeks throughout the Administration of the Code, was not
however officially appointed until "ay 10th, 1934 (Order 332-3). In
April 1934, Dr. Paul Abelson --ps designated, serving at t"o meetings
of the Corde Authority and one committee iaeetin,. Upor objection
by out of towvnmanufacturers 'his Pppointmunt '-,Ps not confirmed and
Mr. Pearson's designation became official.
The various associations or their Boards of Governors having met,
made their selections end presented the selected names and credentials
to the Deputy Administrator and in due time the Code Authority vas
9811
officially approvedd under 0rder:332-16 dated September 5, 1934.
In ,i[ay 1934 evidence of trouble in the IMidiest Association's
ranks came to the:-3ode Authority's attention, various resignations
took place and a ner" election of officers and deleg-tes to the Code
Authority was held. In June 1934 ir, iM. H. Blumenfeld, i :rro Leather
Goods Company, 42 South .iPrket'Street, Chicago,, Illinois, was seated
(See minutess Code Authority eetin!s Yos. 8, 9, 10, 12, held respectively
iiay 24, 31, June 6 and 21, 1934).
As minutes of meetings are studied one notes the presence of
industry alternates. Such w-ere provided in the 3y-La-'s of the
Associations and considered necessary because most members of the Board
had f-ctories located in places other than Ye-, York City and in
addition many "-ere acting as their or,'n salesmen, Pnd thus often on
the road. The practice w-s followed until late in 1934 hen the legal
division pointed out its illegality. (See Generrrl iiles-Correspondence
Leigh L. Ore, Assistant Deputy, September 26, October 17, December 12,
1934).
June 23, 1934, notice of hearing 'rPs wa5ished for the purpose amonG:
others, of determiiirin whetherer the Code Authority ,as truly representative.
hearings -ere held, lasted one da', adjourned and re-opened July 9th
and 10th. Immediately prior to the June hearing a committee of '-'arring
manufacturers had come to an agreement to consolidate associations, (See
P.xhibit Y, Section dated July 2, 1934i and shortly thereafter it -as
ratified at an industry meeting.
At the before mentioned hearings a ner .rouo of 68 small Ne" York
manufacturers cpme to light, rtr'r set-ted uy Archibald .Palmer, 2 Laayette
Street, Ner York, Attorneypt Lav'. They filed, July 6th, 1934 certificate
of incorporation under the naxae Ner- York cabricoid and Leather Handbag
manufacturers Association Inc. 7-ith
-iax S. einman 40 est 20th St., N.Y.C.
iviax H. Kesno-itz 202 Crnel St., N.Y.C.
Julius 'allenzweig 2 est 29th St., N.Y.C.
.illipm A. T-irschbornr 5100 15th Ave., Broroklyn, N.Y.
Ed'--rd R. Lo.yr 38 .est 32nd St., N.Y.C.
liorris .;unthal -9 .est 31st St., '..Y.C.
Herman R.osenz'-eig 258 St., Brooklyn, N.Y.
Phillip Lichtenstein 1605 Nelson Ave., Bronx, N.Y.
Hermpn Feller 1349 57th St., Brooklyn, N.Y.
as directors. (SLe General Files and Transcript, Publ'ic Hearing of June
7, and July 9 and 10, 1-9 4). This group, also seeking representation,
'"-Ps composed mainly of small m-nufpcturcrs, in fact the charge -'"as made
that they w'ere.-contractors posint- as manufacturers and set uo by the
Union solely for the purpose of creating trouble and sentiment pith
the Administration, that Industry did not altogether see eye to eye vith
9811
-54-
the Code Authority.
However, this may all hpve been, within a ',eck or t,"o after the
hearings, nothing more wrs heard of the group as such.
The Code Authority set up question vPs the first subject of the
June 7 hearing. Industry unounlifiedly said tney preferred to have
the Administration Member make the selection of the additional
members. (See rPges 13 to '22 June 7, end 279 to 333 July 9, 1934
Transcript of Hearing.) However nothing 'y"Ps done -oout this rt that
time', it seeming to be i'mpoalitic. During that su.-:,imnei and early fall
a strike wes called resulting. in rmany znore manufacturers leaving
Yew York. Consummation' of"'the consolidation move "'es not considered
feasible and not until January 17,' 1935 vas the appointment of
additional new members of the Code Authority pressed to a conclusion
and recommendation made to the Administretor. (See Exhibit N, Section
dated January 17, 1935.)
iachconaideration vas given this by the Administration but it
--Ps not until some fer days before' closure that trese '-ere Pporoved.
fiarch-8th, 1934 the Code Authority aporoacning the close of its
year in office the Administrption member Tote to the Deputy recommending
that the body should be continued until the expiration of the N.I.R.A.
June 16th, 1934, (See Exhibit N. page 3 o0 Section dated .;rch 8, 1934.)
In December 1934 and Jpnuary 1935 a series of conferences -ere
held bet-'een the Imitation-Leather Novelties GroUp oi the Lufggsge
Code end the Ladies HPndba g Code Authority Directors looking toward
the absorption of the first named by Hancbngs. A deputption ,as
received at the Handbag Code Authori'ty meEting held January 3rd, 1935.
(See :iiinutes Meeting ,25, General !iies, end Atministration membersrs
report January 4th, 1935, Exhibit N.)
Consolidation was in essence agreed to anc had it been confirmed
would have brought to the Handbag Code Autnority an' dcitional two
members to represent that group.
..ith the exception of the changes noted in this chapter the
Code Authority re-iPined as originally constituted until tne Supreme
Court's decision.
2. Personnel oLf the Code Authority
The folloinp were the'members certified by the Associations
as.having been elected:
By the Associated Han6bag Irdustries of Ameiicp Inc.
Harry Schoenfeld President Schoenield & Wolf Inc.
14 East 33rd St.', N.Y.C.
Morris Immermsn P- President Bagcraf't Mfg. Inc.
30 East 33rd St., N.Y.C.
9811
Richard Koret
i.lr.-.ricc I "pj-lcl
*Sol iiutterperl
-55-
President Koret Inc.
3& East 33rd St., IT. Y. C.
Partner A. I. IM'.:id & Co.
14 East 33rd St., Y. Y. C.
President Sol Mutterperl Inc.
330 Fifth Ave., N. Y. C.
By tie ic...i.sUrial Coiu-.cil of Lcrthr Goods U'rinf._,cturers, Inc.
Irvin.- Schoenholz
*Willi,;rn Kacin
President Schoenholz & Weeks Inc.
15 Vast 32nd St., N. Y. C.
Vice Pres. & Trens. Radin Bros. Inc.
132 West 36th St., N, Y. C.
By thc ,tiuia.l Associrtion of Lc-..ies Handbrg ', Ianufa.cturtrs
*Samuel R. Goldsmith
*George L. Meyers
President Goldsmith Bros. Mfg. Co.,Inc.
38 West 32nd St., N. Y. C.
Partner Leyers i-.fg. Co.
330 Fifth Ave., N. Y. C.
By the LIidkest Hai;dbap c: Smr-.ll Leather Wnres Association
*S. iIalow (Position not stated) Crystal Leather Goods Co.
34 So. Wells St., Chicago Ill.
Administration Iei-embers
Dr. Papul Abelson, 11 West 42nd St., I!. Y. C.
0. W. Pearson 45 Broadway, 'I. Y. C.
Dr. Abelson, a lawyer, hos been for many years impartial chairman
of several incduxstries notably Furs and Millinery. No connection with
Hand Bpgs.
0. V7. Pearson an advertising m-Tn connected with Dry Goods Pub-
lications an-a quite familiar with the distributive problems of consumer
goods ;oin2 through Tholesale and retail dry goods and department stores.
Accredited to ten different industries as Administration Member but had
no connection financial or otherwise with any. First appointed as rep-
resentative of Dr. 'Howard the latter part of March he was not made offic-
ial until i!ay as stated in the foregoing paragraphs.
Representing Labor Advisory Board
Phillip Lubliner
Code Directors and Executive Secretary
A. Iittenthal
M. Berkowi tz
Maurice I:osesson, Executive Secretary
(See Exhibit T for breakdown into types of merchandise and size uf Code
Authority.)
9811
-56-
The comroosition of the B-ard followed the rule laid down in
Article VI, but it is interesting to examine Edxhibit T., compare with
the co:-,rmonly accepted groupings of price ranges ana sue that each
was fairly represented.
The addresses given are those of the selling offices which are
located in 1ew York City4 Those marked with an asterisk are out of
town manufacturers and regardless of Ass-ciation affiliations it will
be s)on that the out-of-t-wners obtained fr-m the Deputy in charge a
fair consideration.
Thirty-one meetings of the Code Authority and thirty-seven meetings
of Committees were held, Administration being represented at all oode
Authority gatherings with frequent attendance at committee meetings.
Three industry mass meetings also took place.
File show copies of minutes of but twenty-one meetings and there
are missing many reports from the Administration member. The administrat-
ion I.[embcrbs reports are contained in Exhibit N.
RECORD OF CODE AUTHORITY JZTI!GS
I IETI -G IiU EER
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
DATE OF 1LET.I 'O
March 23, 1934
:,.arch 29, 1934
April 3, 1934
April 11, 1934
April 26, 1934
May 3, 1934
Hay 10, 1934
Lay 24, 1934
Hay 31, 1934
June 6, 1934
June 14, 1934
June 21, 1934
June 23, 1934
June 28, 1934
July 5, 1934
July 9,1934
July 20, 1934
August 2, 1934
August 23, 193
Sept. 4, 1934
Sept 27, 1934
Oct. 25, 1934
lHuv. 8, 1934
Dec. 6, 1934
Jan. 3, 1935
Feb. 19, 1935
March 11, 1935
April 4, 1935
May 21, 1935
June 3, 1935
June 11, 1935
PLACE
N1ev: York City
ii
11
I te York City
1I
!!
I!
I1
!!
Washington, D. C
Hew York City
Ii
N
Washington, D. C
New York City
11
I!
'Ievi York City
R
New York City
Hi
n
Washington, D. C.
New York City
!1
9811
-57-
Ri-OON OF CO.IITTEE iIETI-GS
LDA.i0' OF KZETIl.G
March 28, 1934
April 16, 1934-
April 1S, 1'39,-
April 28, 1934
April 30, 1934
.ay 7, 193:
June 22, 193Z:
June 25, 1934
July 18, 1934
July 31, 1934
July 30, 1934
COI.:I TTZE
Finance Cormit tee
Finance Committee
Beaded Bag Group
Finance Committee
Finance Committee
Beaded Bag Groizp
Steering Committee
Steering Committee
Beaded Bag Group
Emergency Committee
Curmmittee to study exist-
ing conditions in the
industries
August 1, 193z
Augftst 24, 1935
August 28, 1934;
August .0, 1934
September
Septembr.r
SeptembE.i
September
September
September
4, 1934
6, 1934
13, 1934
17, 1934
21, 1934
2., 1934
Small Committee
Beaded Bag Group
Beaded Bag Gioup
Label Committee
Labor Committee
Label Committee
Labor Committee
Label Committee
Labor Committee
Labor Committee
October 2, 1934
October 9, 1934
October 15, 1934
October 31, 1934
November 7, 1i,34
November 13, 1934
Novumb.-r 16, 1934
ilovember 20, 1934
November 21, 1934
December 3, 1954
December 15, 1934
December 13, 1934
December 27, 1934
March 2, 1935
March 7, 1935
March 11, 193.5
Labor Committee
Trade Practice Complaints
Committee
Uniform Cost Formula Committee
Special Committee
Sqmpcial Coiimittee
Label Committee
Style Piracy Committee
Style Piracy Committee
Label Committee
Homework Comminittee
BeadCed Bag Group
Cost Accounting Committee
Design Piracy Committee
Budget & Label Committee
Budget & Label Committee
Budget & Label Committee
The above meetings took place in iew York City
-58-
3. Chan es in Code Authority
The following summarizes the changes made from original personnel
as set forth in the foregoing paragraphs:
1. Dissension in ranks of Hidwcst Association of Chicago led to the
election of
Mr. H. Blumwnenfeld
1.irro Leather Goods Company
402 South HIarket Street
Chicago, Illinois
in place of the original member from that area,
I,:'r. S. IvMarlow.
Certified to the Code Authority and the new member, lir. Blumenfeld,
recognized with the other members September 1934 (Order 332-16).
(2) A complete overturn in the International Pocket Book Workers Union
brought about the unseating of all officers and
Mir. I. Laderman
succeeded Mr. Phillip Lubliner (Order 332-20) as Labor represent-
ative.
(3) Dr. Paul Abelson was appointed to succeed 0. W. Pearson as Admin-
istration !ember but the appointment was not confirmed and as prev-
iously stated with the exception of two meetings Dr. Abelson never
functioned. (SEE Exhibit U).
(4) Agencies of the Code Authority
There were none, all work confidential or otherwise being conn-
ducted by the staff of the Code Authority.
(5) Field Organization
There was maintained a staff of six field investigators reporting
to the co-code director Mr. Ilax Berkowitz who was responsible
for all compliance activities.
These men were retired manufacturers, practical men of age, ex-
perience and standing and respected by all.
Additional to following the usual policing procedure of most code
authorities, examination and study was made to find the answer to
the oft voiced plea that it was difficult if not impossible to
meet code requirements and industrially live, in many cases the
answer being found in bad sloppy factory practice.
Frequent visits were made to almost all factories except those
on the Coast, in Texas and Florida.
The code Directors took great pains in the selection of their
staff and I can safely say they were of much higher grade than
those employed by many other industries.
9811
-59-
hTnile no attempt was made to condone failure to live up to the Code,
Seorc'irn; constructive examination was made to disclose the weak spots of
...ctory -iractice and to strengthen them,
These men did not consider themselves as policemen but rather
as cooisellors and friends and their work took them far afield of the
usual activity of sur.ch men.
Their first concern was naturally the scanning of payroll and
time records but they also took time to study merchandise on the
counters of retail stores, checking of labels used, and as practicall
men deterluinii-_ or at least gaining an idea, from the price and values
offered if manufacturers s were misbranding or underpaying their employees.
SoLUie manaufEcturers were not always honest in their record keeping,
and an analysis of their product sometimes disclosed that at the price
offered, they were so c oing, and rechecking proved the point.
Poins were taken by the Code Directors in checking false adver-
tising of Eetailers and much was accomplished in this direction.
In earlier chapters of this history mention has been made of
the disse.ision existing and the causes thereof. This staff by its
unifor;i painstaking care and fairness, its willingness to counsel,
unquestionably played a part in the peace pact that was made and
Industry begaA to get, at least a glimmering of appreciation and
understanding of what a code was designed to and could do.
Naturally there were some who could not see the light. The out-
standin2 instance of this in the first months was the manufacturer
referred to in the Administration 7.lemberts reports. (See Exhibit N.
Section C.ated April 5, 1935) and in the following letters from the labor
union.
"NEW Yi7:d JOI.T COUNCIL
I:7TLCTUTAIr01TAL POCO-'T300J: WOFK.ZS Ub0ON
Affiliated With
American Federation of Labor.
May 22nd, 1934
L.r. Oliver W. Pearson,
Code Authority, Ladies' Handbag Industry
N. R. A.,
45 Broadwa-,
New York City.
Dear Mr. Pearson:
The Styl-ccraft Leather Goods Co. located in Bridgeport, Conn., a
subsidiary shop of the Morris White manufacturing Co. of New York
has openly challenged the authority of the code authority of the
industry and. has hired close to twenty-five apprentices in violat-
ion of our IHaidba, Code.
-60-
The Union h-1 already registered several complaints for violations of the
Code with tht Code Authority as well as with the N. R. A. Offices in the
State of Coninecticut against the Stylecraft Leather Goods Co. but the firm
instead of p/iing any attention to our complaints, is openly defying the
Code Authority.
Isn't it stranw;e that the .Iorris White ifg., Co. nricd the Stylecraft Loathe
Goods Co,, which firms hadC received at the "beginning of the year a loan in
the amount of 100,00 from the R. F. C. to cond'.tct their business,
should challenge the Code Authority and defy the IT. R. A.? The situation
is more .nenaciig because of the fact that LMorris White is openly boasting
before other :r'Lanufacturers of said daring exploits of taking on numerous
apprentices in defiance of the Code Authority which rakes for general d6e-
mNoralization of the entire trade.
Your irtL,,ec.ite attention and action is most urgent.
Waiting to hear from' you, I am
Very truly yours,
(Signed) A. ST*'IT
BSL-AU i.an ajer"
12646
A~oL.
The situation here referred to resulted later in the matter being
brought before the Compliance Board and restitution made. Of this we
shall deal later.
A few others, generally small in size also proved troublesome but
in:'the main industry reacted spendidly.
Coiiplaint .-as :nrde that the Code Authcority and its Directors were at
times stiff necked, that they were Eastern Manuf;cturers arnd without
nationr.l viev- oint or ability to .-et one. T--o outotstrn&.in- instances of
this -eke the :-ceker Co..ipany of Joplin, i1.: ouri, and the Virginia Art
Studios of Ric'-imnnd, Virgiiia. The files are replete with their volum-
inous co:rmluni cat ions.
Exhibits V and-W indicate the care exercised to answer and explain
positions takerl in a refusal of the seekerr Cmpany s plea, and the
Virginia Art file shows a complete reversal of the position consistently
taken by them in their pleas for differentials through the first year.or
fourteen months of Code life.
Other manufacturers frnm time to time complained, for a moment
or two at any rate, of the consistent position of refusal taken by the
Code Authority with respect to individual requests ard pleas, but almost
invariablyr decisions made were gracefully accepted. These pleas were oret.
much of the sae tenor, applications for over time, twv. shifts, a-pren-
tices and wa.-e differentials.
Reference was made above to false advertising by Retailers. An in-
9811
-61-
stance of this was a long drrwn out controversy with one of the large
New York Department stores. Checking of metropolitan advertising indicated
that at the price offered goods could not be of the material described and
finally led. to withi-'a'',Pl. The administration member was quite familiar
with this andL co'rrobor.-.tive. evidence of this and other simrilc.r trans
actions ma: be found in the late Code Authority files now in the hands of
the succeeding organization.
Statistical reports in Exhibit F and included in pages 6, 7, 8,
9, 10, 11, 12 of this history are by no manner of means complete but they
give a picture of the character of work done.
6. Discussion of Operation of Code Authority as ai
Indr.str_. Governing Body.
In considering this subject one must constantly keep in mind two
factors thLUt for several months after the induction into office of this
Code Authority were ever in the foreground of industry'ls consciousness.
First: A considerable proportion of production was in the hands
of factories located outside the city limits of New York, who were paying
wages much below New York unionized factories.
Second: The Code Authority's own sharp division in membership, as
between ITe-'. York ald out of town, with the outlander element feeling
chagrined and wQrse over the division of representation mn.de by the
Administration
Obviously,this situation !ide matters difficult, for each group
found it almost impossible to rise to their opportunity of self
government and weight dispassionately the problems given birth to in,
and by the Code.
The feeling existing from these factors could not be treated light-
ly and had if -os biblee to be smoothed out. The problem cut several
ways. Out of town factories paying an average of considerably less than
ten dollars per week: found themselves raised to a code requirement of
fourteen dollars minimum, a raise upsetting their equilibrium and
assuming a size in their mental reckoning out of all proportion.
The ITew York faction felt, naturally so perhaps, that the out of
owners would, find ways to beat the Code, not yet realizing the searching
quality of the police machine that was about to come into being. Ex-
pressed openly or not, the out of tovmn men sensed this suspicion and
did not take kindly t.,o it... After all their honesty of purpose was being
impugned before they had a chance to prove or disprove their good intent,
in other worC.s were condemned before being tried.
The representative question then became of greater importance than
ever, for out of town without a majority, were certain in their minds,that
they could not hope for a fair break and did not hesitate so to say.
Ergo: -Confusion- suspicion distrust openly arrived at- openly
expressed,
9811
-62-
The first thi:ig to do was to finci n co;. ion around aned work from th; t
Administr tion in L ;,'shbiniton had unmuccessfully tried it, industry haC'.
tried it in lcIC York neither without aipjarently getting anywhere, but the
Administration member realized that un,.'.eri-e.-th all the strife, there was
a feeling, th-t given a fair chance, the Code was a heaven sent gift and
could help all a long way upon the roiL. oi' renewed success, such as they
had once known. It ''as upon this premise thi t renewed .:.d continuous
effort was uav.e by all concerned and resulted i.- the"let together" of the
sunmler and fall of 1934.
iNew Yor: a unionized city had classification, they wanted such in-
cluded in the GoC:'., they were unsuccessful, the open shops did not want
such, cour.ld not see it, as applied to their own pr..ctice. All felt that
Section 2 of Article IV which treated cf semi-skilled taken in conjunc-
tion with -arzgraph one of the order q...; the hand writing on the wall
that classification was the death's he C. at the feast, the ogre to be
feared.
SNotwithstanding these fears, the A'ministrator and his Deputy to
the contrary notwithstanding, the openly made statement of labor that in-
dustry was dodging the issue and deliberately so, the knowledge :that
Colonel Lea, had opposed its inclusion because of his realization of the
impossibility of writing a definition, the Code Authority did rmkce an
earnest, sincere effort to set up and define the term. It is unfortu-
nate that mere written reports cannot gi-e a true picture of the labor
and turmoil that went into this, the time consunied. Code Authority ramem-
bers felt they were charged with a dut,- which they tried to carry out. Un-
successful, of course the.. were, nevertheless they tried.
Good came from it all, for more thi.n any othcr factor it brought to
pass a greater respect for each other and a willin-gness to see the other
fellow s viewpoint.
Discussion of this and other labor problems resulted in the public
hearings of June and July 1934 and the )rotractnd negotiations respect-
ing hours, classification and wages thct never were settled at the time of
the Supreme Court's decision on N. l. A.
It also had hearing upon the strike celleL in the summer of 1934
which gave great impetus to the migration from iner' York started some
years earlier.
This migration brought in its, traii charge. by the labor union again-
st two ia..-uf.cturers under Section 7 (a) of N. I. R. A., in th:t the
owners had refused collective bargaining. These complaints caused fur-
ther distress and consumed a great amount of time upon the part of the
Code Authority and other interested parties. It w'as felt that the
charges were not justified for the collective agreement had expired and
the Union to enforce its demands had called a strike.
In one of these two cases it developed that the partners of the
concern, because of their financial situation which prevented the obtain-
ing of s-.ifficient banking accommodation iLi hew Yori:, hF.d been negotiating
elsewhere for some two years for factory sites anm. financial help. The
9811
-63-
strike h.vi-w been called, n ;otiations with the union stopped being off-
ered, b.r-: accoi:r.odation provided they take some 200 workers off relief
rolls, ,ai. -;ooC factory acccnoC.ation manned by experienced workers, it
was np.tural to move, in fact there seemed nothing left for them to do,
if they were to continue their business. This case was finally disposed
of by t:.ie "-ctional Labor Relations Board as being "no case" at least
th, t is Ihe recollection of the Administration Member. The other case
somewhat different and flagrant was decided against the manufacturer.
Hore work in the Beadcled Ea7 section of the industry was always in
ones consciousness and much was done by the Authority and its Directorate
in an attemot to ameliorate home workers' rates of pay. Exhibit 0 gives
indication of the thought and time devoted'to the problem. The matter was
not settled but had the Code continued it was hoped that the plan laid
dwn would have been tried out and possibly have been successful at least
to the extent that half a loaf is better than none.
Coi.pliance work was as has been stated in Parlier paragraphs of a
character that was constructive, and positive rather than negative in its
nature and. General Files, Compliance Files, Code Authority Files give a
clear picture of this. Statistics give only an indication of work done
(Exhibits ?. and S), one had to live with the responsible officers to
appreciate the sympathy, understanding, tactfulness without condonation
of misbehavior, with which this work was done.
Trad.e Practices in general, discounts and dating, misbranding by
manufacturers and retailers, style piracy, cost figuring, retailers ad-
vertising and offerings, general welfare, relationships with related
industries, received much of the Authority's thought, time and attention,
and results were showving in the last few months of its life. (See Exhibits
C, F, UI, K, Q,, P, 0, S. X and. paes -48, 49, 50,951, 52, 58, .59 and60
of this history),
At no time in the memory of the writer was there discrimination shown
against Iorge or small, out of town or in town, south and north, east
or west, nor, although labor will not altogether agree, against labor it-
self, and this last in view of the tense situation of some years standing
was rather remarkable.
To sum up briefly; perhaps the best evidence of the success of the
Cede Authority, its paid personnel and particularly its two Directors is to
be found in the fact thot just prior to the Supreme Court's fateful de-
cision a dinner was tendered to the Directors by the entire industry. From
far and near several hundred manufacturers came to pay tribute and to
publicly state their belief in and knowledge of the success of the work
done and to express their feeling that all had been fair and just in their
deal ns,
C. Budget and PAsis _of Assessment
1. Section 6 Article VI of the Code provides that: "MJembcrs of
Industry shall be entitled to participate in and share the benefits of the
activities of the Code Authority and to participate in the selection of
the .embers thereof by assenting to and complying with the requirements
of the Code and, sustaining their reasonable share of the expenses of its
-64-
administration. Such reasonable share of the expenses of administration
shall be determined by the Code Authority subject to review by the Admin-
i-strator on the basis of volume of business and/or such other factors
as may be deemed equitable."t
Article VII.- N. R. A. Labels Section. reads "All merchandise
manufactured subject ot the provisions of this codeo shall bear an N. '. A.
label, or authorized substitute therefore, to symbolize to purchasers of
said merchandise the conditions under which it has been mnnufoctured. "
Section 4 of the same article states in part thift: "Any and all
members of the industry may apply to the Code Authority for n permit to
purchase and use such N. R. A labels, which permit shall be granted to
them, but only if, and so lom, as, they comply with this Code."
Section 6 of the same article provides: "The Charge made for labels
by the Code Authority hall at all times be subject to supervision and
orders of the Administrator and shall be not more than an amount nec-
essary to cover the actual reasonable cost thereof, including actual print-
ing distribution administration and sirvervision of the use thereof as
herein above set forth".
Thus leaving financing of Code Authority activities somewhat indef-
inite, hence there was approved July 3, 1934 Amendment No. 1 to the approv-
ed Code providing for mandatory collection of assessments for finmancing
purposes. Order N,'. 333-13 approved. by Sol A. Rosenblatt, Division
Administrator, Hugh S. Johnson, Administrator.
First financing was by small loans from individual members of the
COde Authorityr.. Money so raised served to pai the small costs of temporary
quarters but did not suffice for salaries so that employees worked fo.
some considerable time before being paid. Later a temporary bank bjan was
arranged which served until revenue from assessments and labels came in.
From that point the Authority was always solvent aaid operating under reason
able costs.
Three budgets were submitted. The first was approved but stayed, the
second a revision of the first, covering one ye,'r frnm I.arch 26, 1934 to
March .', 1935. The' third for one year from March :6, 1D35 to March 25,
1936. Of the last submitted, but a portion covering the period from
March 26, 1935 to June 16, 1935 was approved, and subject to an extension
of the Code by operation of the law, conditionally a'ipr-ved from June 17,
1935 te March 25, 1936.
Period of
Budget s Amount Date Approved Order iTo,
1. 3/26/34 $140,180.00 May 28,19Z4! 333-8
to Stayed -
3/26/35 June 9, 1934 333-11
2. 3/26/34 133,540.'0 July 16, 1974 333-14
to (Resubmitted)
3/26/3-5
9811
-65-
Period
o f Buc-,-Lets Amount Date Approved Order ITo.
3/ 3/20/35 $lO,641.00 May 24, 1935 332-25
to
3/25/36
Basis of Contribution
Bucket No. 1. 1/3 of 1$ of the dollar sales volume
BuC.et ITo. 2. 1/3 of 1( of the net dollar sales volume
B tL'.et ITo., 3. 1/4 of 1% of the gross sales volume
ESTI! J4TD I 1-COIh
Bucak.et !To. 1......................... $149,999.00
BuC.:'et No. 2. .... .. . ............. .. .. 149,999.00
BVlLet Ho. 3......... . . ...... .............. 1,641.00
(1st period) $31,540.00
(2nd period) 79,101.00
(See pages 1, 2, 3- Exhibit Y.)
At the end of the first budgetary period, finding a substantial
surplus in excess of $40,000 in its treasury, the Code Authority con-
cluded to refund $30,000 to industry and passed on March 7, 1935 a formal
resolution so ordering, and by May 3, 1935 approximately '$23,000 had
been -aid. (See page 5, Exhibit Y.)
It v'ill be seen from the foregoing that the Code Authority and its
paid officials were cautious and watchful in financial operations and
my own feeling as Administration member was that in some directions they
were overly so, for they needed the services of a least two extra.men to
cover the South and far West, and of statisticians to enable a proper
and full statistical study of inCustry te be made.
2. Termination of.Paragraph 3 of Administrative Order X-.36
July 27, 1934 Acting Division Administrator William P. Farnsworth
signed Order 332-15 terminating the exemption conferred in Paragraph
III of Adrministra.tive Order X-36 dated May 26, 1934. Opportunity
to be heard had been given in notice No. 236/1/01 dated June 15, 1934
and no objections were filed. There was at the time considerable over-
lapping in the bag industry particularly with the Luggage and Fancy
Leather Goods Industry and to some extent with the -Womans Belt Industry
and if the e:':ei-qtion granted under X-36 were allowed to stand the Hand
Bag Industry bade fair not to meet budgetary requirements
3. Effect of other Administrative Orders.
Iz it necessary to point out that the constant delay in the issu-
ance of Administrative Orders approving budgets were to say the least
disturbing and gave rise to much bitter criticism? Industry recognized
the right and need of checking, but certain questions raised, were deemed
9811
-66-
nont: o: the ACninistrationt s business, were resented and this militated
ajainnt ..,jt:, functining.
It v', c-,I.tanitly pointed out th-t what was being done was for the
:-ritcction w' the Code Authority itself, but none the less the answer
A c t_',-:- llthe Cod
evcr i-. i--, .we ':v;n' our irnustry, either we ,re trAsted or we are not
antC *, s!ill thirLk Adiinistrationf is over -reachin" itself and in any
tvei-r.t tLe'c. c-n be no excuse for the delays." It is to be rermembecred
th t in tic latter Ca's there was less delay than formerly but there
still rc..i;-.:e( the v.onC.er, How Lon.- oh Lord, How Long)
4. _ir_ .If..1 .
It i'cs originally propose-. that labels should be sold at a profit
sufficient to finance' the operations of the- Code Authority. Preliminary
cnniifercics were held 'by the Deputy and his 'advisors with the Directors
rcspectin- this anJ upun objection it was determined that a levy of 1/3
of 1' s..i ales would be preferable and ti,.t labels should, be sold at
coAst plu'. It was consequently so ordered in Administrative Order 332-8
-nd the later Ord'er 332-14, 332-25. Proper regulations were set up, under
which i :...:try ordered and were supplied for c:.sh, sufficient for not
more than three week's operation.
1'r. A, A, Fisher in his report to the Deputy made part of this his-
tory, JCe 3, Ixhibit Y states in detail that the total sales of labels
were 37, '32,Or00 and that these were purchase( after bids from several source
of su,:,pl; at a -rice of $14, 84.00. (iOME: Reference is made to sticker
labels; tcsc were only to be affixed to merchandise already in stock on
July 2, 1'.4) Industry was req-.ired to file with the authority a monthly
statement cnd without such, labf.ls could not be issued. The use of labels
was salutary serving as a compliance weapon, and to further the laying of
iound.ti i;.: of a statistical structure,.
Pa:c 4 exhibitt Y gives in detail the income received during the
period coveru-d fro.r. :."arch 26, 1934 to FebrBary 28, 1935. This totaled
IC5,7'..... uWit?- a total expense of '"651,574.44 leavi .; a surplus of in-
ccrele $-,,..?..85. This as statc.%: in a previous paragraph and on page 5
Exhibit Y ''a. in part c.istriiutcd pro rata to industry, creating an ex-
cellcnt i")rcession.
5. ProTprticn of Ac scss!:ients Cnllecte&
The collection of assessments .wrs a sim-rnle matter, for the label
rcjul tions .rovidcd for a filix,;: of sales reports with the Authority
and unie..s the pprovcd percenta,-e was paid labels did not issue.
At -- bc.i-.'inj t-iere was some confusion, or -,:-rhaps a slight
holdi bL.c:, -'itil it was found that distributors would not accept
m .crc.au 'ie ,ithi.c.ut labels. Frnr.T then on, there wes no trouble, col-
lectiinc, : "made frrm, 1.;r of industry, with a small amount, $600,
thbt .'. ., v.-c,'ll cctible, and this held all the way to 'the end.
1 -.,r ."J Jsrati.ons r-f Co-e Autliority i ,el-tion to its Other
nc r7. ti to Other
D811
In am earlier paragraph of this chapter it was remanlr.od that the
Directors were overly cautious in their financial operations. This per-
hrps should be qualified by adding, that they needed to be because of the
make up of the Cede Authority. At the bei inini of this history it -'Ls
pointed nut that never at any time had the industry thought it necessary
ti really linov itself, to obtain a knowledge based upon facts. Nert having
been accustomed to the idea, one had to ap-proach the matter circumspectly,
with a feeling that cne had perforce to crawl before attempting to walk.
It must not be thought that over caution to the point of hamstringing was
the order of the cday, -but neither must it be forgotten that a start from
scratch, -.ecessarily entails much greater energy than keeping a going
machine lovingng. On the whole the financial set up was good and did permit
competent and fairly adequate operation.
D. Ad:iniitr.:.tion mf tho Code
1. Aineidnd.ients
There were a number of Hand Bag MIsnufacturers making products
other thn Hand Bags, principally luggage and fancy leather goods. These
claimed that jurisdiction belonged to the Luggage and Fancy Leather Goods
Code since from their point of view it was a more advantageous code under
which to opncrate. With the somewhat indefinite financing provisions of
the Ladies Hand Bagg Code it was necessary to clarify the situation. After
discussion with the Assistant Deputy it was determined wise to move for an
amendment to the Hand Bpg Code and such amilendment No. 1 was written, passed
by the Code Authority, submitted to the Administrator, opportunity to be
heard -;iven Order 332-12, and finally proved by Order 332-13.
In preparing the order for approval the Assistant Deputy noted
tnet t'f- hilmad Baj Code Authority would be unable, due to overlappin-:, pDro-
vide sufficient revenue to meet its budgetary requirements. From that
point on there was no trouble in financing.
The constantly recurring question of the semiskilled defi-
nition coci.in'- up for public hearing in June, a special meeting of the Code
Authority was held on the day oaf" the adjourned meeting in *ashington, July
9, 1934. There was introduced a resolution, later carried, that there
be deleted from the Code Section 2 of Article IV, and further that Section
6 of Article IV like wise be removed. (See minutes of meeting No. 16 July
9, 1934 General Files) Labor made% strenuous objection to these resolu-
tions anc continued so to do in the ensuing months. An order covering this
was drawn up later in the year, 1934, but never consummated due to the
interlocking question of wages and hours not having been settled, and the
matter drag-ed along until the winter of 1934 and 1935. February 7, 1935
notice of hearing was issued (No. 367-F) and. this subject was included
with other proposed amendments submitted by the Code Authority (See Trans-
cript Public Hearing- February -2 1935 pa.es 86 to 224).
A serious problem affecting all consumer goods industries
particularly 0'ere such are distributed through department .stores, is
that of vhoat is known as "Return Goods". Apparently orders placed by re-
tail merchants h].ve not altogether been considered "firm" orders, the re-
tailer, if so be he had changed his mind or found his judgment as to
-68-
snlabilit- not so, -nok rezervin...: the rijh't to return goods ,t will. At
one time, this Zocis not to h,-ve been the c-se, no-Ae returning .oods, unless
for the s-.b.tantial c.-.--:e that they were not up to ample. Of late years
howcvLr rnc'c..A,-.Jnts ave not hesitated to return 0oo0Ls for almost any cause
iotwith' t.-..(1.' t:-.ey were C.,.'e up b:' the "r. ',.u acturer iin .good faith
Z-1nd shi ) e.' according to iiLstrctiois. ,crchants, if they found busi-
ness in a slI.*n, a -)eriodic occurence, had no compunction over passing
the buck to the manufacturer, in other words expecting the manufacturer to
:)ay for his, the retailers sins of omission or commission. In the good
.'-cwrs with .producers, retailers could seldoii get awa. with the pirr&ctice
nd never with the well organized mid financed Manufacturer, but in times,
suchl.s we have b, en havin" the practice of returning goods by even the so
c.'lled re .,,table outlets has reached. mon-trous proportions.
The ITEn. Bag Code Authority trcliled the problem in earnest, and were
desirorus of ,.lendin.- their Code so that it would be prohibited, but found
it an impossible task to find a satisfactory '-ins:er so thM-t no actual
jirienjacnt covering, this wns ever presented. (See ou e 2 minutes, meeting
1.O. 12.. Gerierrl Files).
Ai<-st 2, 1934 the Code Authority at meeting 1.:o. 18 passed the
follo--'iin. resolution!
resolved d that Section 1 of Article II be
*z.c..Lecd by inserting the w7ords 'shopping
ba];s, bathing bags, handkerchief bags,
vcanity bo:.cE, cosmetic bags, utility br-s,
niitt Lig bag:' in the first sentence after
the ro-r. 1 i:ur.ses' so that Section 1 of
Article II w.ill reoc as follows;
"The tern ?iV.-stry1 as \used herein included
the max_-2,-.ct,.re of Ladies', hirses, and
childre'es hL-ndbr s, -jnc- :et books and purs- s,
shopping ba,;s, bathing br,!s, hnndl:erchief
bags, vanity boxes, cosmetic bags, utility
bags, knitting bags, :.ianufactured of any
iriaterial of any kind or nature,. The term
iUnCaistryl shall nat include ho'..'ever, the
.:an--:.f.eture of hendbacs, pockctbooks, purses
mnC. .mesh bn.gs inmnufactured in whole of metal. "
This '7as submitted to the Ad.inistration and after much discussion
.ith the interested parties was noticed for hearing (367 E December
19, 194j) andC heardJanuary 9, 1935.
At this hearing, it is to be noted in the Transcript, that as an
agreement 's -bout to be re.chcd between the opposing parties as to
which of the ,-nv, articles brought in as evidence should be included in
the proposed nevw definition, it was found necessary to seck Colonel
Brady's opinion. (See pae 48, Transcript, Public Hearing, January 9,
193), To o.ee:- oaes sec -ni^v surprise, Colonel Brady rendered a sweep-
in,- decision that all bajs on ex-hibition were Hand Bag,:s. Thi3 broad
state:-ient rvas cdsconcerting, created !uch disc.,.ssion, brought about many
9811
-69-
conferences nc.. it was not until almost the close of the Code that a
spti factory c.efinitibn tns prepared and submitted for a.pr-val. This reach:
"TTe term "industry as used herein includes-the
mai'uf'.ctu.re of ladies, misses, and children's hand-
bags, pocket-books and purses, shopping bags,
b.thi- bags, handkter'chief bags, kiddy ba-s,
vprnity boxes,'cosmetic ba;s, k-nitting bas, manu-
fL.ctred of any material of any kind or nature.
"The term lindustryl, hov'ever, shall not include
articles commonly manufactured by the Lu -.,age and
FFMcy Leather Goods Industry used for traveling
pu",oses, nor over-night bags for whatever pur-
pose used, nor any article manufactured for men's
only, nor the manufacture of hand bags, pocket-
books, purses, vanity cases bnd. mesh bags manu-
factured in whole of metal,-"
The Schechter case decision having been made the matter naturally
dropde d.
The miinc.tes of meeting No. 18 also note that the Code Authority ex-
pressed itself in favor of anmending the Code wvrithiespect to Price Groupings
The followjing excerpt from minutes of that meeting, page 2 and 3, and
Exhibit E indicate the reason u'g applied as does a later brief written
by the code Director .viittenthal. (See Exhibit Z).
At this sEjne meting No. 18, the follovriig resolution was presented
and passed:
"RESOLVED that the Code of Fair Competition for the'
Ladies' lHandbag Industry be amended by
inserting a trade practice rule which
shall be Imknown as Section 16 of Article VIII
to read as follows:
"I'lo member of the irnd.ustry shall repair bags
without r.iaking a reasonable charge for such
repairs, when such bag's show that they have
been in use, No member of the industry shall
pay any forwarding charges for such repairs. "
This proposp.l led to considerable discussion and opposition but
was finally, presented in the following form
"i.o member of the Industry shall pay for or rebate forwarding charges
incidental to the return of used handbags, or repair used handbags without
making a charge for same based upon the cost of labor and materials required
for makiv, such repair. This provision shall not apply, however to repairs
attributable to defective workmanship or materials. Actual forwarding or
transportation ch-rges shall be separately itemized oi, invoice."
noticed for public hearing (367 E December 19, 1934 heard Jpnuary 9, 1935
approved lpy 23, 1935 and to be known as Section 16 of Article VIII Order
332-24).
9811
The reasons back of this move are interesting. Irn the relationship
between producer and seller, there has been a feeling that much buck
passing was taking place.
Times being good,. profits with the producer excellent, not much
attention is paid to such matters. Retailers finding merchandise move-
ment slowing up, take advanitae of every thing possible, no matter what,
to ouicl:en sales and more particularly when it can be done at some one
elses ex-ense. Undoubtedly in good times retailers would not return mer-
chandise to a manufacturer for repair unless it were palpably faulty, but
of late years faults obviously developed as a;result of wear or careless-
ness -ere charged to manuf .cturers. The retailer however, it is claimed,
charged his customer for "repair-but on the other hand asked the original
producer to make such at no cost to the retailer. If these statements
are correct, and we are assured their are, one must admit it to be a repre-
hensible practice and anything of a legitimate nature looking toward clean-
ing the stable of bad practice is to be desired.
(Refer to pages 98 to 103 Transcript Public Hearing January 9, 1935.)
Design Piracy is an evil we have always had with us. The brains
of the creative world as well as those of the legal (patent) fraternity,
have been turned over and over looking for a check upon the light minded
gentry, who hesitating to illegally take ones money or property, have
not thought it amiss to steal ideas from their more creative brethren.
All governments have over the years tackled the subject, and as far
as one can quickly determine, have not'been altogether able to find a
satisfactory answer. Certainly the public hearing held January 9, 1935
developed the difficulty of obtaining a meeting of minds. (See pages
68 to 98 Transcript of Hearing) and it is well to look at Exhibit Q,
which gives an outline idea of the time and thought put into this by
the Code Authority and its officials.
The Administration had not made their decision as to the advisa-
bility of including this as an amendment when the act was declared void
and so the matter rested.
The minutes of Code Authority 11eetings indicate that at meeting
1o. 21 held September 27, 1934 a proposal to amend the Code by adding
a section to be known as Section 8, Article VIII coverirg Destructive
Price Cut.ting was made but Code Authority officials state this was
never pressed to a conclusion.
The minutes of this meeting are not apparently in our own files,
but the following was taken from the Code Authority Minute 3ook.
"Proposal to amend the Code by adding a section to Article VIII
to be known as Io. 8.
."Destructive Price Cutting by means -of covering any metal
center frame, pocket and coin purse with fabric materials or
9811
-71-
leaGher, or the lining : of any framepochet
or 1.i're Vwith leather in handbags selling
oat 16.3. th.an ",24.,'O pecr C',ozen i3 unfair
colIv)ti tion. "
Earlier in this history it w.-s anointed out that manufacturers having
gone as far as thej cold with competition based upon labor costs, bc--.n to
add gadgets, thui starting a race, destructive of sound practice. The
above :)ropcZ.r.l v-ajs a first step loolcink: toward the building of a sanor
view point. i.aturally the differin- view point among manufacturers
themselves offered difficulty in reconciliation and it was decided tn lar
the subject over in the hope that as time went on industry v.,ould come to
a realization of better manufec.Luring end selling practice.
Hoiievwor'., here as in all other industries where the practice is
followed, was quite troublesome, although but a relatively small part
of the industry operated in this manner, viz: handbeading, hlndcrocheting
handembroidering aid until July 1, 1934 handsewing, After July first this
last was to cease.
One does not.need to enlarge upon the indecencies existing in this
character of inc'.u.stry, nor the diffiuclties surrounding attempts to
govern it. Labor insists it cannot be done and therefore should and rnu.st
be outlawed, which is easier said than done.
The Code Authority and its Directors made great effort to meet
the situ-atio,-i and presented to the Aajministrr tion a rather comiIprehensive
program lookin- toward at least a partial attem.:t to bring decency and
order into being.
In the files of the Legal Division there is a copy of a tentative
amendment to Section 8, Axticle IV for the purpose of establishing a
commission which shall establish muiniarun piece work rates for handbeading,
handcrocheti-nv and handembroidering. This is dated June s8, 1934 and sets
up that "1no memberr of the industry shall compensate home workers at less
than the ;iece vcrk rates established by said Commission, said Cnianissiun
shall est-.ablisn1 piece work rates which shall be equivalent to a minimum
hourly rate of 25- for workers continuously engaged. Said Conmmission shall
be supported by members of industry engaged in the manufacture if handbags
by means of handbeading, handcrochetinc: and handembroidery, such members
of industry shell contribute to the support of said Conmmission by a method
of assesi.s.ent to be approved by, the Administrator, "
There is to be found- in Lx.:hibit 0 a rather comprehensive brief and
other C.oc-U.jents covering the subject and a discussion of it on pages 123 to
132 Transcript Hearing of February 28, 1935.
June 21, 1934 the Code Authority passed a resolution adopting the
report referred to in the preceding paragraph and instructed the Director
to prepare the necess-ry resolution and forward to the Administrator. (ilinutes
meeting No, 12, page 2, June 21, 1934)
While these minutes are not definite as to the intent of the Code
Authority with respect to preparing an amendment to the Code, it was so
..intended and the matter camine up at the Public Hearing adjourned from
^ -_____________________,__________
-72-
June 7, 19' to July 10, 1934 and reference to it is to be found in
pages 339 to 112-1447 to 1,52 c-.nd in the supplement (complete) of the same
he;riao
Labor strenuously opposed the proposal on two grounds first, home
work in r-.n-r form is iniquitous and ca.-.Lot be controlled and second the pro-
posal set u-. an ho-..r rate of pay lower than called for in the Code.-
A representative of the' Woments Bureau, Dep-artinent of labor also
appeared in opposition, particularly with respect to the so called I"myth-.
ical rate of 250 per hour" jrnposed, ,nd on, the further ground thet their
records and investigation showed, that many of the skilled home working
women were earning a rate higher then that, further that home work
cannot be policed and ought to be abolished. (Pa.-;es 374 to 379 Transcript
Public HIeari-., July'10, 1934)
The mi-tter never retched a conclusion bein-' more or less interwoven
with the entire labor provisions, nevertheless the Code Directors made con-
sistent effort to bring about a better state of affairs.
February 7, 1935 notice of hearing was published(No.-367 -F)
and the heri:,; tool'pl-ce befor- Colonel Walter ILan.-un, Deputy Admninistrcto:
February 28, 1935 to consider the following proposed amendments:
article III Section 2 shell reid as follows:
"iTo erson emr'ln.ed in shipping, clerical or
of-ice vior>, unless he is employed in a man-I
a-crial or executive capacity and e-rns .not
loss than thirty five (,.i35.00) dollars per
vwek, shall be permitted to work in excess of
forty (40), hours per ;7eek averaged over any
one month period, provided, however, thrt a
partner, officer, director, or stockholder or
a meraber of the i.'i(c.stry enjoyed in productive
Labor, shall be considered an c.,,rlo'-ee for
the 11urposes of this Code, and shall be subject
to the labor provisions thereof".
Article VI Section 8 (c) shall read as follows:
"Zpch' member of the Industry shall keep accurate
an IC complete records of his, their or its trans-
actions in the industry in respect to wages, hours
of labor, conditions of employmentnumiber of em-
lo-ces and other matters' necessary for the ef-
fectlIPtion of the Code, and Title I of the National
Inc'.ustrial Recovery Act. Each member shall furnish
accxrsete reports based upon such records covering
v'ch matters when required by the Code Authority
or the Notional Industrial Recovery Bord.,. If the
Code Authority or the Tational Industrial Recovery
Bocrd sLall deternin3 tr.at doubt exists as the
r.ccurvcy of any such report, so much of the per-
9811
-73-
tinent bookG, records and papers of such member
e.s may be required. for the verification of such
re ;ort may be examined by an a ency agreed upon
between the Code Authority and such member, or in the
ab.-ence of an a,-reement, by an agency appointed by
the Code Authority and approved by the 1National In-
u.istrial 1,ecovery 3oerd. If a member of the Industry
shall fail to furnish occuirate reports, covering any
of the foregoin. matters when required. by the code
Authority or the iN'tional Industrial Recovery Board
sJ.ch member shall mLake'- available to an agency
t_-ointed by the Code Authority with the approval
of the national Industrial Recovery Board. so much
of the pertinent books records and papers of such
1.enber as may be required by the Code Authority
',ith respect to ages, hours of labor, conditions'
of employment, number of employees and other matters
necessary for the effectuation of this Code".
Article VII Section 11 to read as follows:
"Lo member )f the industry shall grant cash
discounts in excess of 3/10 E. 0. M. Exception on
jooc.s sold up to and including $27.00 a gross, no
members of the industry shall grant cash discounts
in excess of .-2/10 2. 0. M. Anticipation may be allow-
ec". at the rate of 6, per annum. No mmber of the
industry shall grant quantity and/or volume discounts
of any nature".
Add a new section to Article VIII to be known as Section 16 to read
as followc:
"Free Deals Combination Deals no member of the
Industry, shall directly or indirectly give what
are 1mown as 'free deals' or 'free merchandise'
or combinationn deals' whereby a joint total price
is charged for handbags along with other merchandise
All bills -mcd invoices in vhich hanc.ba-s are one of
the items, shall set forth separately and definitely
the charge of the hand" g alone ".
Neither of these Amendments were ever approved and were still "in
process" when the act ceased.
In ean earlier chapter mention wvias rnmde of strife within Union Ranks
resulting in complete overturn of officer personnel.
The !ort colorful of these officials, the most persuasive left Union
ranks to teke chrrge of Labor Relations for the then largest manufacturer,
iMcrris 71hite later Stylecraft Bag Company at a salary of $52,000 per annurL.
He lIter rejoined Union ranks and after thle break in his Uniondecided! to
open a factory, financed and operated by men of the craft and fellow union-
ists. Zl.ch of the men underwrote a portion of the capital needs, and each
-74-
*ow ;>, yi o."ire' o7 t: conmny an.~ the shoo a's conCucteC as a coopera-
tive. Still others .i8 liO e'ise anr the ii:Custr- --as faced -'ith a
brea2,k'on of hour sciheules by the subte'.ue of men claimin,. to be com-
pany officers. -Rnce the JurT)ose of the first )roposol.
Agnin in an earlier chW other it is pointed out that this industry
vas not statistically fnct minded, nor realize thie value of such material.
The Code in its e--oroved, form vas not' ecniLte-, not a.s eX:plicit in this
respect as it 'mi 7ht have been, maina- it difficult to obtain necessary
pertinent infoQrmtion. It ': s felt this 'Oro oo sedc. chen.e -as necessary.
A chi-nie 'as -oenCin- in tU. set' u- of this Coee's definition, also
ne.-otiations for a cor:solidation of a -roaop thi-t -had oeen -oart of the
Lu,;' :e Industrr '.ith the. Hpn".bL.- Code Auithorit. ha been -.bout concluded.
In th.t group sellin.- terms 86 been estnblished oPl withoutt chan-e for
me.n,2,T veers. It -'as, necessrirr thn.t thle -ro.'osed. -mencemnt respecting
terms o0 brou.Tht before tie AcministrTtor for ,r-,roml. This served. to
ro.)en the '-hole cuostion of Disco.aints see pages 10 to 83 of Transcript
of TerinTr., ?ebrL1r-r-.- 283, 193:5.
Th'e 7ree Deals Combir.tion Deals prbOos ,-1 P f"elt necessr-.r be-
cnuse of the .-o"in: deri nrds Q-' retailers for all. sorts of free thin-s,
iritials for -:::aQ-le. It was but another form of, hi vin --- the C.evil
aro-n.. the stump. See oa *es 83 to 86- oQf the Trai.scriot Public Hearing,
eo,'ru.- 28, 1935.
In concl-cinr: this chzoter it is ";ell to state that the t"o amend-
ments a'oroveO. nd those -oroloseJ had ao .-oo. effect uipoo. indi1st-ry. It
'"rs made ':io n to ineustr- b o-iblication and ,ord. of mouth, '-hat the
Code Authority ras doing and there cane about a fe.-lin:, that their Code
Authority iwas on its toes, tc:cklinf troublesome -)roblems in a -oainstaking
thought ful manner. All dii not aree in detail rith conclusions reached,
but it :as felt and believed that -ri.ht thinin ha.d oeen develonee 17ith
a quieting stabilizing effect.
2. Interpretations
(a) There vTas but one interpretation made under this Code
(Administrative Order Ho. S32-10), .Aated June '6, 1934 signed Earl Dean
Ho"ard, De.-ut, Arministretor and Sol A. Rosenblatt, Division Administra-
tor, Division io. 5. (See 2S.-ibit S.)
The question raised ras that of the inclusion of a certain
process of manufacture, the lin'zin,. together of niunerous nieces of lea-
ther, under the term "'and crochetinc". Could it Leave been so included l.t
followed that under Section 10 of Article V, such ork wouldd have been
permitted' in the hoqe.
Sirce the irterpretotion didA not include it under "hand
crochetin-" it bee'-ne a process Forji6'Cen for home or-..
(b) Effect on Indust ., ;
I believe some question 7as later risee' Ps to the sound-
ness or this opinion. Some thought it a vise thing to have included it
9811
-75-
under Hand Crochetin-, it being a natural operation for home ,ork. On
the other .irnd it is difficult to see hovw b- any stretch of the imaginn-
tion it could be considered as "hand crocheting" or as com;in.- under such
a general headin.-, for it is a totally different process.
(c) Discuasion of Value
The Orcer is e:-plicit end there seems no further comment
needed.
3. E':em--tions an'. Stars
I'o exer'.jtionF "ere gr-.rnted under this Code. Thile minutes of Code
Authority nc-etines and our orn -eneral files, contain rin-r' references
to, ano- -jo-)licc.tions for e::emotion! and oermissions to -'ork overtime,
emolo-- learners, v.e-;e differentials, oarticularl-r a Southern rate, ap-
orentice", snli to -ork: t'o shifts, out the Code Authority rejected all
such on the broaC -?ner1l -round that conditions in the industry did not
.arront approval.
One -oublic hearing vas held Layr 7, 1934, (no. 367-A), upon apolice-
tions for e:-:emotions b- :-
Hudson Leather Goods Co., Inc., .' J ck, W.Y. exemption Art. III, Sec.
2, PnO for )ermis-ion to employ learners in accord vrith Article IV, Sec-
tion 3.
G. R. Godfrey Companr, Gardner, Less. xem-ntion from Article III,
Section 1, and Article IV, Sections 1 and 6.
Paragon 1 ovelty Ba:- Co., Inc.,
Uneeda Belt Co., Inc.,
Nexber1 Handbag Co., Inc.,
Licht & Kaplen, Inc.,
all of ier7bur.-, i. Y. Exemption from Article IV, Section 1 and to em-
ploy learners, Article IV, Section 3.
Strand Leather C-oods Co., Inc., ievi York, 17. Y. to employ learners,
Article IV, Section 3.
Vir: inia Art Gooc.s Studio, Inc.,
Lynchbur-, Virginia.
"a-e Differential.
Under orders 332-4-5-6- and 7, signed by Earl Dean Howar6, Deput-,
all of these )etitions were denied e:-ceot Virginia Art Goods Studios.
The situation '-urrounding VirCinia Art vnas ali'ays difficult and somewhat
becloudeC. Vir/inir. claimed ecxemotion within ten days after approval of
the Code, in that they --ere not parties to it. The Code Authority pointed
out their membership in the major sponsoring organization and failure to
resign made them oarties to the Code. In the public hearing of H8ay 7,
1934, theT- vere permitted to file briefs. As far as the files disclose,
9811
-76-
action -rr. wit.iel. on their petition, all others heard. beinr denied.
Yo evi-.ence can be foan6 that formal action 7'-s ever teken u-oon
Vir2-i'ia Art but it is clear that a tacit .'v;roval to e:em-ption 7E.s
-iven. This ga.ve rise to much bitter criticism by the Code Authority
whichh flared un rather bcdly. ,"hen in Julyr 1934 it was made nmo.n that
a further hiearin7 '"as to be openec.. lTothin,. definite came from tais and
the matter tl.r,-ed along all tiiroa-:h fall and '.inter of 1934 and 1935
with, at almost every CoCe Authority meetin n', bitter resentment being
voiced over the fact that Virginir Art '.ere oreratin- in their ov.:n Vay
without t re-.-:,'d to Code reouirenents. The Code Authority insisted that
undue influence had been and 7as beir e:ercisec, and found themselves
in a difficult untenable position since the case as constantly used as
an e'amp.le by offenders in e:-tc?-uftion of their or,'n misdeeds. The Code
Authority and its Directors felt their could do nothing and it r'as not
until Deput}r Colonel I.*nunum and his assistant Dan, Hill took hold, that
successful steps were ta-en to iron out the situation. Thro'),h the
good offices of the De-outy, the C,:de Director, :_: 3er'oritz proceeded
to Lynchbur- en. made a stiic' of operations. He made certain recom-
mencations '7ith respect to plant operations ann the installation of a
cost system andC found evidence of the ability of Vir.inia Art to pay
code d;oes. Reference to AZ:hibit A. 1. portion rated April 20, 1935
lives s indication of the success attendirgthelast, as %7ell as a history of
the case.
4. Other Administrative activities anc e.-encies
a. Tro6e Practice Comolaints Committee
On Seotcrmber 27, 1934, Order Ifo. 332-17, a plan of organi-
zation an.? groceduire covering, 7r-rc'e Practice Conplsints and. the appoint-
ment of a Committee ,ase anorovec'. 0b the Administration. The personnell
of the Committee consisted of the follo7in-r:
.illiam C. Rath, President
Jilliam C. ?.,th Co., Inc.,
31 :at 32nd Street,
ilew York City.
'e-; York manufacturer r nailiri, b---s ran.n-in- in
retail price from ,1.95 up to and over $4.95.
Hirmnnn 3urstein, ?resident
Ciarles 3iarstein & 3ros., Inc.,
325 1'ifth Avenue,
.ev:. York Cit-r.
An out of to'.:n m.-nm. .ctur:r i'ncing bars ranging
in retail price front $.0'. to $4.S 5.
[I0 "
ilai: .-cr'.c.uer, Inc.,
5" .esft 52nd Street,
Ve-. Yorl: City.
A beadec Oa, mrianiufacturer of T. 7. Ci tv.
9811
-77-
L"- rence o.s, President
Tnteriri e kccos5ories, Inc.,
35 :'ifth Avenue,
,e' Yor:.- Cit-.
A 1e'- York i:anufrcturer making a one price line
t:' retail at "4.95
Ay).lication for approval of this committee vwas first mace
under authorit- of a resolution raassed byr the Code Authorit7 at meeting
17o. 4 held A)ril 11, 1034 (see Kinutes in .-:hibit 3.1) but it was not
aonrovec. until the fo.lo,-ing September and the committee held but one
meetin.--, October 9, 1914.
There a ilso submitted, at that time a plan of -rocedure,
ihich v-ith some change -as also a-oproved (Exhibit B.l). The plan called
for a National Committee s "-ell as regional Divisional and aibdivisional
committees for specified territories and. purposes. 3ut one committee,
the National, -as ever set uo and for reasons stated belo'"- never actually
functioned.
Th.ie oair; personnel of this Code Authority-- held a broader vievw-
point of their functions .nd their opportunity to serve, than vas the
case in other industries, coupled .!ith, as ex-manufacturers of handbags,
hrvin- a )rimer-, k':no"led:e of their industry, its problems and pitfalls.
It '.;as in their vie -: -oint, right -nd proper to tpke up all compliance
matters themselves, 'ere they trade practices, or hours and 7ages, study
each situation, -opply nnr remedy necessary and report to the whole Code
Author t-r.
*At no time within n the knowled.to of therriter rere trrde prac-
tice com-olaints made at first hand, knowledge of seeming violations corn-
in- to of icials, as ;' result of study of the retailer's buying and
selling ofr merchc-.ndise. .H-ving obtained. in this :way, fccts upon which
to act, meetirs ere ii:-' ith the -oparties involved and it was generally
found theta violrtionF- occurred through lack of proper understanding and
-'ere rerdilv straiIhtened. out.
(b) Labor Compl.aints'Committee
At a meeting of the Code Authority- held June 14, (Eeeting NTo.
11, see minutess E::hibit C-l) a resolution vas pas-ed appointing a rational
Labor Complaintn Committee consisting of three members of industry, and
also that the Labor Advisory Board should appoint three members and that
the Administr.tion :ember should be a member. The following industry
members ",ere appointed:
David A. Ingher, President; Ingber Co., Inc.,
347 Fifth Ave., NTew York
David Norgenstern, President, Morgenstern & Brossear, Inc.
26 ITo. 17th St., New York
Sol iutteroerl, Presidfent, Sol 1:utterperi, Inc.,
330 Fifth Avenue, Iew York, I.Y.
The names of this committee, together with plan of procedure was submitted
9811
to the Acminizt--tion Jul., 6, 1934, but never approved and therefore did
not function.
(c) B3,r-La'"s
By-La-s (See Exhibit D.I' vere first submitted June 28, 1934,
having been passed by the Code A.u.orit Uieeting June 14, 1934 (See min-
utes meeting 1"o. 11, Generel F1i.1
NATIOIAJL PTECOVE-'Y ADi1.:I STATION
7,ASHICTO, D. C.
45 LroaC.va-wr
Few York City
Digby 4-2324 June 28th, 1934
Mr. David Barr
Assistant Deouty Administrator, Div. V, 1RA
Department of Commerce Ljuilding
7ashington, D. C.
Dear I;r. Barr:
SUBJCCT: Constitution -n(" b--l" s of the LrEdies' Handbaf Code
Author t-'
I transmit herewith for your o.-orova.l thr,-e copies of the constitution
end b--la' s for the Laiec' H-ndbF- Co.e ut.iorit,. I have ?one over
these ca-re-ull': and se-: nothing_ o cjectionoble in them. However, I am
'7orderin.- if it is not ,os'ib1a for tner-: ,nd al.l other b,-laws to
include r provision clerrl- ,tatin- tn--? cities of the Code Directors.
I merely make this sui-estion because of the habit Code Authority mem-
bers have of hiring and firing re.-ardless of a Code Director.
I have upon a number of occasions at Code Authorit`'r meetings emphasized
to members, the necessity of :lacin. full responsibility upon the shoul-
ders of their Chief Executive Officers and that this cannot be done un-
less they refrain from foisting upon the payroll of the Code Authority
their ovn peculiar pets, or appointees. This situation has existed in
liillinery ever since they first opened their office and it is one I have
not succeeded in righting. .
Yours sincerely,
**(Signed) 0. '7. PEARSOI]
07'P:DAR'O. ,,.' PEAP.SOIT
07P: DAR ADI IINISTRATION I.JE 3ER
9811
-7W-
-.79-
By-Laws (cor.tinu.cd)
L'r. '.ia- 3crkovitz
Ladies Hancbc;a Code Authority
303 Fifth Avenue
Iev, York City
Dear 14r. Berkov.-itz:
I am enclotin_- here'-ith a copo of the By-laws
of the Ladies -Hando-,- Industry Code Authority with
pu.-estc.d revisions to meet the objections of the
Le..,ol Division.
Year attention is called to the following ch-nies'
Article III of the c'ri,;inF.l, has been deleted. Cer-
tificates of Com-i ,irce3 are provided for in Adminis-
trative Crder X-'3, cdel.n: vith label relations.
Article IV, Section 1 ha s been amended. by the insertion of
the w:ort "Industr," rb,-ore the vord memberss" in the
thirc Enentence thereof.
Article IV, Section 2 has been -,menled to set forth,
the .irovicioiins of the Code "ith reference to the
method of election of the Code Authority.
Article IV, Section 4 has been amended by the inser-
ti)n of the "or',T "Industry" before the words "H.ember-
shin" and "Rerres-.-.t.,ives".
Article V, S'sction 4 h'L 'been amendedto make provi-
sion for the oostin- of a bond by the treasurer.
Article VII, Sections 1 and 2 have been deleted, and
the provisions of Sections 1 and 2 of Article VII of
"Sum-.ections for 3".-La..s for Code Authorities (Re-
vised edition) heve been substituted.
Article VII, Section 3 has been revised to conform
to the "Suggestions".
Article VIII, Section 3 has been deleted. Itemized
budgets must be submitted annually to the Administrator.
..'hen so submitted a separate annpproval of the Budget and
Plan of Assessment may be given by the Administrator.
If these Byr-La','s, as revised, are satisfactory
-ill you !-indlv forward, as soon as possible, six
copies of the certific-ition of their aCoption by the
Code Authority.
Very truly yours,
David Barrt
Assistant Deputy 'Administrator
_M AlIl_ g1..... . Q <_____,__,__....... ... . ..
-80-
I
For some reason not disclosed this matter ras dormant until October
19'4, .Then on the fifth da" of thet month the cMneniced by,-La'-s were re-
submitted and. approved undcer Order ;.3?-19.
(d) Other
There were no peculiar admiiAstrative actions or r.7encies
utilized.
5. Other -,hag.es of Core A'fmrnini-trtion nrict covered above.
A Tra.e Associrtion of concrete positivee vclue has be-en unlkno.n in
this Industrv e'-ce' -oerhaxps the one dealing only vith collective egree-
ments. Just 1'-r they existed even in nriL me is hard, to understand, for not
being herd minded so to soeah, this industry -o-.i' not f.deouately support
a for'7ar'-d loolting ,..tivit'' of this character.
The hand bo,% Code Authocitr- directorate-.ent far afield in their
woiz, appreciating the need of building a close!ry '-nit industry, cement-
ing reletionshipos between sources of supplI7 and tfaeir own grou., and be-
t-ean wholesalers, retailers and. themselves. They keot close watchc h u-oon
advertising of offerin..'s by retailers, both regular: and sneci.al, `:ept
closel'r in touch w.ith fashion, style and color tr-nds, const-ntly met
,ith trr.de association executives and leadii-,. men of indust,-r, closel-
allied to or impiniin; upon their ovn, for these men havinT a vision,
realized 1hov much ni-'it and could. be accomplished under their Code set
up.
The Code Autho:'itP- itself ihile appreciative of the value of such
work when told of it, could not carry on, were not mentally geared to
it, and without the leadership of men such as the t7,o directors, Tould
never have thought of such tings, least of all realized their need.
Given another year of o eration this group wouldd have found itself,
would have knovn itself, T"ould h,-v.? intrenched itself, would have become
fully conscious of their need of such knowledge and of the unity that
sprin,-s from it. Evidence in the Code Authoritr files clearly indicate
the gsins made.
9811l
-81-
OPERATION OF CODE PROVISIOITS
Labor Provisions
Hours
Wages
Administrative Provisions
Trade Practices
-U L --
IV. OPERATION OF CODE PROVISIONS
A. Definitions
As stated in Section a, Chanter One of this history (.Page ._3).
the following definition included in the approved code left something
to be desired for constant requests come in for clarification.
"The term 'industry' as used herein includes the manu-
facture of ladies', misses' rnd children handbags,
pocketbooks, and nurses, manu-ac-tured of any material
of any kind or nature. The term 'industry' shall not
include, houiever, the manufacture of handbags, pocket-
bookE, purses and .iesh bags manufactures in whole of
metal."
1. Overlapping
The trouble lay in the fact that many articles falling generally
into the handbag category, were made by two other industries not con-
sidered as handbag manufacturers viz:- Sanitary and Wateroroof
Specialties Industry and Luogage and Fancy Leather Goods Industry.
As the first named title indicates, that ground were producing
many articles that because they were mace of waterproofed materials,
naturally fell into their production line, and yet which to a degree
belonged to hand bags, since they were designed to be carried in the
hand for various utility purposes. Naturally such manufacturers did
not wish to operate under more codes than necessary and onnoosed their
inclusion under Rnndbags, and it became necessary for the Ladies'
Handbag Code Authority to move for an amendment.
The problem with the second group was involved with both Sanitary
Snecialties and Handbags, Almost since time began --romen have used
some form of a reticule in which to carry their small belongings, money,
etc., and the controversy here narrowed down to the dividing line
between hand luggage and hand bags.
The feeling on the rart of the Dewuty Administrator indicated at
the public hearing January 9, 1935 was that Handbag and Luggage Code
Authorities should get together and agree uoon the division, with
perhaps a consolidation of the two, so closely allied industries, as
being the best answer. In the case of Sanitary Specialties the
Assistant Administrator made the ruling referred to on Page 86 this
hisotry. The amendment nronosed vwas in process of settlement at the
close (Notice of Public Hearing No. 367 D.) but in the meanwhile the
officers of the Code Authorities involved, agreed upon a modus vivendi
that kent affairs moving on an even plane.
In future consideration of codes, should that time ever come,
greater care must be taken in scrutinizing proposed definitions and
see that each is Prooerly embracing, but at the same time determining
where and what are dividing lines. These cannot be determined satis-
factorily in industries such as these, unon merchandise departments in
9811
-83-
the retail outlets, for there, they either follow custom of their own
convenience. Here you are concerned with production and all that is
involved therein, and such must be kent unon a fairly even cost lane.
To do otherwise keens the labor rot boiling and of course makes for
friction and trouble on the labor side, and can well make for destruc-
tion of a well established industry. Perhaps an answer is to be found
in minimum wages and hours being made similar in all closely related
industries. That at least 'iould eliminate much of the controversy
that takes place in all such cases. In thiF 1ist, one cannot of course
overlook the difficulty involved, and yet so long as an uneven situation
exists, troubles with related industries arise and are magnified and
since you are bound sooner or later to have trouble over these matters
you might just as -ell take the larger dose at the beginning and have
done with it.
3. Wages
1. 7age Levels; !!inimp, Averae
Section 1, Article IV, nage 31 of the code states that exceptt as
hereinafter provided no em-oloyee shall be oaid at less than the rate
of thirty-five cents (75t) ner hour."1
Section 2 of the same article states "that no semi-skilled
emroloyee engaged in cutting, framing, raring, pocketbook making and/or
operating (except lining operating, cementing and/or posting) employed
in the manufacture of any of the products covered by the provisions of
this Code, made of any materials other than imitation leather, shall
be raid at less than the rate of forty-five cents (454,) per hour."
These are the only two rates of ray provided Pnd since the last
was stayed in the order of arnroval we need only at this noint be
concerned with the first named.
Exhibit G, rage 1, paragraph 2; page 2, paragraph 2; rage 4,
paragraph 2 of the Mittenthal memo on the industry, gives a picture
of the wage situation obtaining prior to the code.
Exhibit F gives a statistical break-down of present day distribution
of the industry, disclosed in Code Authority reports.
If, as claimed by out of town manufacturers, the.large majority
of their employees were not skilled, the effect of the code wage scale
in increasing purchasing rower, must have been very marked, for they
jumped from an average of $6.00 to M8.0O per week, to a minimum of
S14.00 weekly.
Taking the manufacturers statement in this respect, with a large
grain of salt, my own observation of processes used in out of town
factories, leads me to conclude that a full 501 of those engaged were
definitely affected by this increase, and the classification break-down
included in Exhibit F bears this out.
-84-
2. Industry Compliance
Of the 87 labor complaints made, but 37t were of wages, and well
over 50% of these from one state .Iassachusetts. See Compliance
Compilation by Colonel Walter Mangum. (Also see Exhibit R.)
3. Skilled Wpges
Section 2 referred to in Paragraph one of this chapter was as
noted, stayed, in the order of annroval. As pointed out in Chanter
2, page' of this history and as may further be seen by examination
of Exhibit K, much time and effort was spent upon this subject and all
without avail. It was a compromise clause placed to placate labor
and New York Manufacturers, and in the hone, that from it, would come
a substantial increase in earnings to a fairly large number of employees.
Coupled with it wps section six nrovidinp for a Dermissive classifi-
cation and basic rates for the more skilled classes of labor.
Exhibit G, ages 1-2-3 and 4. gives concisely the labor situation
obtaining in the industry orior to the Code's adoption.
4. Adjustment of -7ageo above the minimum
There were no provisions for an upward adjustment of wages.
5. Mal-Adjustment with other industries
In paragraoh A, page .82 of this chanter, reference is made to
the difficulty existing between the Sanitary and Waternroof Specialties
Manufacturing Industry, Code No. 342 and the Luggage and Fancy Leather
Goods Industry Code No. 42.
The Luggage and Fancy Leather Goods Industry Code provided for a
differential in the Southern tier of States of 32 1/2 cents for male
and 30 cents per hour for females as against 35 cents for male and 32 1/2
cents for female in the Northern States. It also made provisions for
learners to be paid during a six weeks period not less than 80% of the
minimum.
The Sanitary and Waterproof Specialties Manufacturing Industry
Code made provision, that the rate be 35 cents per hour, except that
Apprentices be paid not less than 28 cents per hour for the first six
weeks and thereafter at 35 cents ner hour.
The Ladies Handbag Code provided a rate of 35 cents per hour, with
no exceptions and a permissive clause for learners with no specified
rate.
Obviously when questions of jurisdiction over certain products
arose as they did, these rates became disturbing, and more especially
with Luggage for it was felt that that industry had not an efficient
Code Authority machine set up.
9811
|
| Full Text |
PAGE 1
Business Library CLASS _____ _ BOOK ____________ _
PAGE 4
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
PAGE 5
.! ' _; J, .. ...;: ..... _ H t.
PAGE 6
9R11 HIS1GRY of the CGDE GF FAIR CGMPETIT:C N for the LADIES HANDBAG INDUSTRY Approved Cod_ e No • . 332 Author: Oliver W. Pearson Robert C • . Ayers Chief, Histories Unit
PAGE 7
y 8 1940 ..• .. . .
PAGE 8
FGP..EiVORD This history of the Code of Fair Conpetition for the L a die;:; Handbag Industry is mimeograyhed in order to make available a srunple of the code histories by the Division of R eview. A similar service be r endered in connection with certain other code histories. In order to get a complete picture of National Recovery Administration materials ap plicable to a given industry, one nust visualize such a documented co d e history as this supported by the three volumes of evidence '.7hich ':Vere sent to the President at the time the code nas recommended 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 v ast of material in National Re covery Administration 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. T h is. 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 hearing s which were held, and the activities in connection with obtaining approval of the code; the organization and operation c•.' f the code authority, the dif encountered in the 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 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 i -
PAGE 9
Digitized by the Archive in 2012 .. .: \ . . . . . . . ' . ' .. ' • • r •' ; • ' ' • ' l • I , • ' I • • • I " . . . • ' . . • Ill .. • 'I' : ':# ,'''•, ;-.. http://archive.org/details/historyofcode36unit ... . .
PAGE 10
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 Practices ...•..................................... 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 . ' i . .
PAGE 11
... ',1
PAGE 12
MEM OR.A.."'IDUM TO: FROM : SU13JECT: January 7, 1936. L. C. Marsha .ll, Director, Divisior. of Review Oliver W. Pearson Hi story of the Cod e of Fa.ir Competition for the LADIES HANDBAG INDUSTRY. There is tto d herewith the Hi story of the Cod e of F air Competition for the L adies Handbag Industry. This History W8, S compiled in this office and was written in accordance Y?i th the model outline issued on July 10, 1 935 . It is believed tha t this record, a s adequately r eflects the History of the Code of Fair Competition for the Ladies Handbag Industry. Approved: Walt e r Mangum, Director, Industry Section # 3 . 9811 -iii Oliver W. Pearson
PAGE 14
L_REFACE The La.die s Handbag Inclu stry vias founC.ed in this country so m e fifty years ago C?.. n d e ntirely m a n ned. by imlJort e c . craft s r:1en. It continu e d for many years as a craft t r atl e a nd only of q uite r ecen t y e ars had it evolve d into one of mass uroduction with G.n incr easingly l a r g e use of mac hinery. Pros2erous for years, b e y o nd belief, net to o wners very large, workmen or craft s men eal'::ir:.g $ 150 $ 20 0 and in many cases $ 3 0 0 it i s no t diffic ,.lt to un1er s ta'ld the menta l con dition that came into 'being , wnen r 2echino1 y c a::l e horizon, mass production threatened, l abor be cane r estive:-C'lnd fL1 ally. t h e d e p ression a r riving with its consequent loss of profit s o To r-tl l of the se f actor s c a n be ascribe d t h e unres t that existe d r in e n 'i-.I g R .,A. 1.-1as p l a ce d upon t h e statute books, put notw i ths t anc .ing t h e disa g r eein g view points all had a belief tha t a Code was necessary, a n d nould prov e a s it later did, of grea t benefit. Reviewing t h e eighteen months I with the L:1.dies H andbag Industry and its Cod e A u t hority a s its Admi nistration Member, looking back over other i ndustries , some ten in nu.rr.ber, to which I was accredited, I ree.liz e toda y the outstanding q u ality of the work done by the Handbag Group. Perhap s other indu stries more d ata, s uch for in sta..l'lce li.'!illine rjr al 1 d I-. 1en 1 s He.t s , b u t n o ne b etter welded conflieting interest s , n o ne accomy lished more i n finding the common ground upon which to stc m d t hen cUd t his sore l y bese t handbag Group. Beginning days i w J edi('l tely ? r e c eding the enactment of the N. I .E. A . h e arts and ::Jind.s of i'.1cl.ustry 1 e r e fill e d r;i t h m alice, hatred, and all unchari T : 1is s to.te o f i':1ind .:or.tinued t h r oughout t h e code ne gotiation perio d ? . nd did no t r.i until sorne t h r e e months a fter the coG.e w e n t i nto o:pernti0n, anc t h e nor! tY}_s o f t h e C od e era found manufacturers more. cohE.si ve, m o:.. e though tful in thei r r e l ations with e ach other, more inclined to loo k at t heir problems from the view point of industry a t la:::-ge. I would not have it belie ved tha t t h e Millennium arrived but certain it is a degree of intellig enc e ; ;a s inj ecte d into Tih a t had been a :9urely selfish outlook and all b a de f air to profit accordingly. In t hose days one eould feel in the air the different a t mosphere that pervaded deliberations, one trade organization had co m e into being instea d of severa l who hitherto had b e e n a t e ach others throats, and from what I was told by a numbe r of Q anufacturers the industry at the end of its firs t eode year '.las able to s ho w a t least so m e financia l statements in bla c k ink, t h e first in several years. Close study has be e n made of r Pcord s in our files as well a s thos e of the code authority in New York. M any thing s stated are of necessity based upon my own recollections, b u t with officials of the l ate code authority, an d I believe the following c hapters represent a fairly comprehensive history of this code. 9811
PAGE 16
,. 9811 -1I NFO]MATION Definition of Industry Princiual Products Products under other Codes D efinition of Industry Classes of Mambers Statistics
PAGE 17
-2-I. GENERAL L:-FO:rtl.iATION In t.1 i s references were !TID.Cl.e to all availc:.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 Sectio n 5. Orders 6. De)uty1s Files 7. G enere. l ]'iles 8 . Researc:1 anCl. Files 9. Government Agency Reports 10. Code Authority Reports in re 3udgets 11. Code Authority files in New Y ork in possession of the Ne.tional Autl1ori ty for the Ijacli es r:endbc:g Industry I 347 Fiftl1 Avenue, New Y c r k.) 12. Administr2.tion Le!;1bers Files, New Y ork City (Now in process of i n cor)oration into General Files, D. C.) 13. con t::tc ts with lF.te Code Directors 14. of Industry by Ab. i.Iittent:1al, Code Director a nd . filecl wi t : 1 Dr. 1. C. !.Iarsl1e.ll about Se ptember 15, 1935. 15. Bulletins issued by t h e Code Authority. A. Definition of Industry Code as originc:.lly propo August 11, 1933, by the Associated Inclustries of America, Inc. submitted following as t:1e definition: II The term 1 handbat; industry ' r."' used .1erein i s clefined to mec:m m:mufa.cture and/ or w lwl e sc:-l e di stri but ion of l?..dies pocket books ancl J:mrses. 11 11T h e term ':::)erson' o.s used ::.1erein inclucl.e natural :;ersons, 2.ssociations anr.l. corporations. 11 11Tl1 e term as usecl >.erein s ho.ll include every )erson actively eng a ged in tl1e lJrod.uc tion 2-nd/or wholesale distribution of products of t!1e hanclbe. g industry as herein defined. 11 A)art 2 , ?age 1.) As defined in ... Revised Draft November 6th, 1933 it read: -9811
PAGE 18
-3liThe term 'Indus tr J ' a s usec.l. includ.es m..:'.nu?c-.cture of ladies' : c> .. nd.bac;s, pocket bo.:-l: s "'.Ild l)Urses . 11 As :.::tev:.sei'l_ f 0 Ve11ber 2LI.., 1933 it r er. d : -1. terra I I nc1ust r J ' < '. S : .1erein i:1 c ludes i'll.?:CD.fc-.ct'J_re o f m i sses, ancl s :lc.ndbacs, l_Jocketbooks, e..nc1. mc:nufactured cf rnaterie. l of eny kind o r nc-. t-ur e . 11 In t_'lG draft s of D e cemb e r 8 , D ecember 1 2 , D e cember 21, 1933, it r emained wi t:L1ou t c:12.nc:;;e. (See E: i bit A p2rt 6 , 1: 7 , 1: part 8 , 1.) c ode Articl e II, Sectio n l , reads: 11The t erril I iridustry1 C'. S usee_ :wr e i n includes the manuf' ccture of ladies', m isses', aml ::.e.nr:.ba_;s, } ) OCketbo-::k s , ancl. mc:.nufc?.ctured of materic-. 1 o f C1ny k ind o r nature. The term 1 industry ' s_lc.ll not include, h owever, t:1 e JnC'.nuf2.cture of )ocketbooks, :;mrse s ancl JP.t;s L anuf'='..c turei in v1l1ol e of netc.l. n . The C IJP.n{;e"'m"'.d.e resultedfr om wr:.r iaus conferences and o b jection by A. J . Bo.rrenboim end t 1 Ir. Newmcn of tne Legc..l Divis i on, counsel t o t:1e lJivisio n (see g enerc> . l files Code RecorCl_) . Tl1ey served t o clarify the definition in L .ey more clec-.rly specified t}le lines t o be bovern.ed, e.ml. '!Jy elinin" .ting t h e term 11wl:olese.le11 ) rev en t overla:;_) in.=; w i t:1 d.i stribu tine; codes. T h e bener.e.lly ' Taec;n ing of t:1e Code .::lefin i tion i ncluded ba:;s, b.::.L_;s, ef bags, vc::.ni ty boxes, cosmetic ba.:;s , 2.nd. kJ.1ittin.; bat?;s . t o r3mov e doubt s and be c ause o f re)eated requests from industry for D. still clec.rer defini tion section WES G'.t tl1e close i n l) r vcess of b eing amended t o re(1.d : 9811 i1 T : "e t e r m 1 i n(;_ust r:;r ' as used :1erein i n c l ucL.es t:_.:.A of ladies 1 , misses' and . c _lj_L ' . r ens 1 pocketbooks e..nd :purses, n nG babs, bG'.f;S , b aGs, k i ddy bat,;s , v2.11ity boxes, coi.1etic b<.1.cs, ttin,; b a];[' , r11enufp.ctured of
PAGE 19
-4-wha t ever lJurqcse c>.rticle nc..m.J.fr .ctureLl for mens ' use only, nor r.1e.nufc.'.C ture of l:Mc,ba .. : 1ocl:.:etbooks, )L.1r ses, vc.,ni t y Ce.ses, .?ncl D c : .gs manu...:. f;:.cturecl in e of 11 }fot e inclus ion also of bc>.gs11• T-.1ese a r e products of a grou11 of som e 75 manufacturers w::.-:; a t tL:1e of dissolution were being transferred fror:1 the and Fc..nc y Goods Code to t:li s Code. (See Llinutes Lieetint"; NQ. 25-Jc:n. 3, 1935 2nd corres)cndence general fiJ.es) Considerc:,ble o : : ?i_Josi tion t o t :.1is last definition w2. s r a i secl by S.?nit2.ry __ ;/7e. ter: J r oof S )eCic.>,lties Industry , bece.use of e:e inclusion of 11b a t :lin:; bags " 2ncl for m2ny . sucJ'l . . were strictly of wo.te1proof o r rubberized m2.terie.ls. After severcl wi t:1 i 1 ir. Kenlrid: of t: : e Sanj_te..ry C : Specia l ties Code difference vvc._s s mco t : 1ecl out. T:1ere wc.s only one l a rge manufac (Kl ancl srne..J.l ones affected c:nd. all b u t one, w::o had n o t yet been con t acted, c:{;reed to use Ladies labels, i n all item s bordered on. code. (See Code Rec o r d files) 9811 1. Products L acHes Hisses C1ilclrens ... P o cketboo k s =>urses (See Article II, Secti-:;n 1 o f Code) 2. Products also 1mCl.e r Codes Kiddy B0.gs and F ancy Le2 . t :1e r Goods) . :Bags (So.ni tE . r y , Je.teryrcof S'..Pecic..lties) B. Def i nition o f In clr2.ft o f August 11, 1933 tl1e term w2. s stc'.ted: "T 1 1e term 1 per son 1 e . s used include n0tural . persons, 1 and c or:po r8.tions. term 1 eml lloye r1 c::.s used :i.1erein. include every person c.cti vely eng2. t;ed in :;?r o do..ction c.>.nd/or w:101es.s.l e distribution of i)rocluc t s of ::.r'..nC:bc.>,g indus-
PAGE 20
try as herein d efined." (E xhibit A-Part 2) -5In the August 18, 192 3 draft it r e m aine d as state d in 11 form, but in the N ov embe r 6 , 1933 form it read: 11The term 1emnloyee' as used herein includes any nerson in a ny pha s e of the industry, in a ny canacity, receiving cornn ensation for his services, irresDective of the nature or method of nayrnent of such co!!lnensation.11 11The term ' e mploy er' as used herein includes anyone for whos e benefit or whose business such an emul oyee is engaged.n " T h e term t m embe r of this indus try 1 includes a n y on e e ngaged in the industry, eit h e r as an e mnloye r or on n1s own behalf." (E xhibit A-P art 4) In the r evision of N ov e mber ?.4, 1933 it r ead:-"Th e term t emnloyee' as used herein include s any engaged in any nhase of the indus try, in any capacity, r e c eiving cornDensa tion for his s ervices, irrespective of the nature or m ethod of nayment of such cornnen sation.11 11The term 'Employer' Bs used herein include s anyone for 11Vhose benefit or in whose business such e n e m nloyee is e n
PAGE 21
-6-Note: Tile definition of industry member includes in e .ddi tion to rra:r.ufD.cturer 11mC'..m:tfe.cturing joober or contr2.ctor. 11 Tl-1e r:tc.nufc>.cturLls j obber is one who gE;3nerC'.lly uses e co1:-tr2.ctor to mcl-ce goods for him 2nd to whom he supplies all or )E'.rt of tl1.e mE'.teric:.l s usecl in t h e meking of bC'. gs. f Con tractors -were of the usu.--.1 tyi>e wl1o did v2.riou.s opere.tions on b c.b s , 2nd r.:r-e 2.s m[w be f ound in c..ll gr. r ment industries. Som e of t :1es e con trc:.c t ors, however, ml::".9.e Cci n:.;:>l ete b2.gs a ncl some re-1 et s of work out t o T , .lese contr:\ctors 'lve:re subject to lJr ovi sions of tl1e Code, but were not e.ssessecl for t lt e ex:;;:>ense of C'.clmini stering the Code • . (See cle.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 clc>.ssifie:J. list of m.?.nuf2.cturer s sl1owing kind c:. ncl c:1r:.rc:-.c ter of goods mC'.m.u E'.C tured. C. StF1.tistics of t h e -Ind1...1.Btry Prior to the e do ption of tl1eir Code this Industry' had never 2.ttemptecl to g.:--.t her. f2.cb.1E'.l .d.."'.tr:, r .nd in f2.ct hc.d seemingly no idea of the VE'.lue of sucl1 . Under 2. code ,-:md of c>n by Code Directors o f the value cf such materi8.l t l1ere beg.:'n the collection of d2-tc:. close :promised t o be o f .gr.e0t service. Progress was nc.turo.lly slow b ec< .use of industry's inertie. , due to their l ack of understanding , c:.nd -i. t i s 2.lso to be believed,to a fe2.r of disclosing end f e .cing fc..cts. Vol. II s:10ws : t of Commerce figures bulletined by Code Authority of Bulletins issued No . Fo ur, under of December 21, 1 934 1933 '1931 lJo. pf est8.blishments 2 .60 Cost of mc.teri2.l s, fuel $15,298,920 .DO 600,817.00 etc. V alue of products Value 2.dde d by mMufe.cture 28,299,004.00 43,147,053.00 1 3,000,0H4.QO 20 '546' ' 236 .oo 1929 2 9 0 68,627 ,515.00 33,275,910.00 a decline from 1929 to 1933) See Exhibit C.
PAGE 22
-7Costs of Lc.:.bor between :,:ew York <:.r eE'. end outside Nevv York r.rec:' . . Com::_::iJ. ed in Syrin_ ; 1 9:=:3 by the Cocle Director['.te. I CRC h..1"2.A C'IUTSIDE mn A_"-B_A to r e t ..... i l '"'.t 5 0--' ._;lS . 00 t o .)v.OO .; r oss . , J 9 .00 to 00 gross (imit2.ticn 1 e:;, B2.gs t o retc.il ::a . o o . :)30 . 00 to ,7r 00 , _,ob . gross ' ) 1 3 .oo to ' Lt : . )2-. 0 0 gross ( i--n i tc:'.tion 1 er . t .. BC'..t;S t o r e t .'"'.il [', t ._)1.95 00 •,):_.1 • to ;/57 .oo c;ross ,;;3 3 .00 to :'39.00 gross B['.gS to r e tc.i l ;t ,2 Ci,-... ; • . ;)7 .2. 00 to oo gross )13 .oo to "'-1 ,,o .oo g ross :02.gs to retr.il r . t ,Ll ( •,>-'• • ) ,.) .:>96. co t o 1. 2 0 .00 .:;ross ;)6 0 . 00 to ,,? ") 00 (,) !..J. These fiQlres .:.re bc:.secl o n tl".!.G Jr esent J.[ . b o r r.::-.tes :'low beins } X. i d in tl1e industry . Any cll."nges r['.tes bec2.use of t : . 1e semi-skilled definition o r i ncrec..s e i n wr.ges due to c. Uni'Jn "'. greement, may alter conditions. 9811 The N2.t i onP.l Autl10rity f o r Ledies Industry successors to Code Authority under d.:--.te of Sept e mber 1 935 g."v e me t :1e f ollowi:r.g: * ( c:.) *(b) (c) ( d ) ( e ) Units E:ng..--..ged Contrc.ctors (est) tc.l ( e t ) 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 ec:'.rs ubc fifteen units did in excess o:Z ;?l, 000,000.00 ::.nnue.lly :v:1ere2 . s i n 1935 but one nill t:':-.:-.t fi.;ure . I n 2.nswer t o C?Jl i n q uiry to S c.tion.::. l .Aut : _ ori t y d.:;.. ted 1 2 , 1 935, we 2.r e given t : 1e following : Fi.;ured on clollc:.r vc.lue it is l)el i.eve .de of L e2. t l 1 e r of bc,gs P.re of Clotl:.. ( I m i to.tion
PAGE 23
-8Fi;ured on units eng:;.ged 30 mnn:u.L:.c tur e 1 e c?. the r mMufc?.cture (L:ut.:-.tion (See EX:1ibi t D) Rese<:' ,rc:1 rncl PlMning files disclose in report )re)e.red b y J2.,;1es P. De..vis, Febrllr'.ry 8 , 1934: Source: Ei.'IPLOYl.iENT 1921 192 3 1925 1927 1929 1931 1932 1933 Burecu of Census :rte:)o rt from Inclu s try volume apprcx. SSJ.B 6826 8370 8747 12000 1.:::ooo 1923 l
PAGE 24
-9Di stri bu tion of E e.stern Southern I.iidw e s tern Pe ,cific. Coast Aree. s Defined Soutl1ern: i.iidwest: Pacific: : ; 8 7 3 ' 650 • 00 9 1.50 6 0 1 ,4-81 .00 2 .30 5 .33 226,043.00 0 . 8 7 '093' 00 100.00 York; M e.ssachusetts; Connecticut; ?J.1oc'!.e I slnnd; New Jersey; Pennsyl V < , nic. : l(ie..ryl< ncl; Virgini.::,; F loricla; c..ncl Texc..s: Illinois; Wisconsin; Eissouri; a ncl J c . s : .. ing ton !:'..nd Ce..l ifo rnie.. (See F , paGe 1. -9811 * Tl1e s eem i nG; dispc.ri ty is to b e exp l<.ined in one c 2 .se b y 2. totc. l wi t'hout bre.cl<:down, in the by se:p2.ro.ting mMufc.cturing units from contractor units. -----....
PAGE 25
-10 Files of Lc>.bor Adviso r y :9oC'.rcl f oun0_ i n Genero .l Files: PLL=t.::>ES 1 CARD CASES (Primc:rily Le2-t:1er) P0cketboolcs 1.:urses c c . r d co.ses -1929 No. o f Zc:t . ,7 <'-ge Earn e l' s Ave. for yeRr 4...() hrs. uncLer Over 40 Uncler 45 -4.:548 Inclusive Over 48 but not over 54 29 0 10,430 (7) 18 U (176) 6 , 248 ( 58 ) 2,185 (32) 1,750 I YDU:STRY Ka. \7 e.Ge C o s t Added t::s tc>.b. Ec-. r n . Wc:. t:,es of V['..h..<.e Vc?..lue --1931 253 8,;)4'5 1 0 ,086,600 2 1 I 7 I 931 1::1 , 9 26 ' l 9 0 20,008 , 259 1929 2 9 0 1 0 1 5 ,229,422 35, 231 , 6 0 5 6 8 ' 6 J7' :31 5 33,275,9 10 1927 257 8 , 570 13 , l 6 9 , :SO 9 29, 6 1 J ,52-1 57,344,655 27,726,131 1925 207 5,518 7,291,113 16,235,882 32,731,72 5 16, <'"95, 843 D I 1929 New Yorl-:: 192 Est. 6,101 wor: .cers 10,952;801 s 47,631,43lvc.lue Pennsylv2nia 17 II 1,04:0 II 957,711 II -1,306,827 Lic.s t t S 17 II 696 II 709,779 II 3, 540, 111 N e w J ersey 8 II 800 II 623 II 3,6::56, 9 66 Then o:1io , Illinois, Eissouri, Californio.., -.7i sconsin, C'nd SffiC'll C'lTlOunts in ot!1er s tt". t as. AVERAGE A1Jli1JAL .7AGE u. s. 1931 :')1 '180 1 S29 1,460 1927 1,536 9811 II II II
PAGE 26
-11W<-'.Ges of cert.,.,_in vr men on VP.rious tions in S )ringfie1o., :.lc'.ss . facto r y : Se it. l 0"")-.J{..JJ 1 9 28 -:ours :;jcrnir. ; s ?...:-,t e ---EC'.rninGs 172% 64.60 .... 7 1 t,) 2 1 5 6 91.4 3 16% 61 .26 36 in 169 7 2 . 178 4 9.83 28 1 926 58.03 57.36 3L1_::,. , from 163 80.4:8 10LI..:4 37 .19 3r;l . t...,.,; cJ.F.',Y worl" 138:; 66 .40 183% 76.03 Ll.:1 t o 1744 85.04 piece wor k Pro)orticn of i ' ; . Y. S tr:.te :roduc tion t o t o tc;.,l production 1929 T o t eJ. u . s . (;68 '627 t ::515 o f p roducts Ste.te 47,63 1 o f total number of esto . 58 . of t o te.1 numbe r of V'l'8.t;e ee.rners II II II J f l'1C.l1 t S i n N . Y. Sto.te, 167 <'..re i n New York County 9 in Kin.c;s County 5 are in queens Count :r O f 17 )le. nts in Penn2 . . , 13 are in 9811 . l _our_ y R e.te 58i 43 34 48 49
PAGE 27
-12-Picture pf Industry As given cf July 1, 1934: compilec.1. by Cod. e DirGe tors: (See General files) In In 1929 As of July lst 1934 In 1929 In 1934: 2.s of July lst 9811 Tl1e en nf'.tic n 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 bags 4,000,000 in bc>,gs to retail for (a. oo volumG o:i:' business wo..s 1 out of w hich 1000, 000.! covered O.?,gs to r eta.il f:tom 2 0 up to (a.oo, Emcl bc.lc.nce for b2.gs from 95 u p to ::;2'3. 00 ee.ch. of N ::.tion 1 s r etail business in is d one between D.:-,y and December 24th. Bc,c:;;s a t 95 ['.lld up r'.re mc..de by h['.nd in New York Ci Bc>.gs from 201t to 00 c>,re made by t:1e new e,nd modern in t > c out-of-town fP.ctories. PB.GDUCTIOlJ IN : ie produced 2-Z ,OC O ,000 units Yle 7010001000 units from 20 up to ; :a.oo, e-nd !), , 6 00 I 000 11 11 95 and up Code Authority l:ionthly Reports (See EJ/l2 .ibit F) Y ve.ge Re1Jorts-Sales Volu..lne-Unit Voh:m1e C 1 o..ssific.:.tion of workers engE'..ged.
PAGE 28
9811 HI STOR Y OF CODE FOR.1ULATI O N --S po;1sorin, Of ficGrs , Co0e C ommit tees to ?ub1ic Bearing Pu'ulic HeClrings 1 '9 .flrov c . 1
PAGE 29
-14-l. Commercic?.l A&enci e no vr i -,_able mr.te i al. 2. Deoartmant of Commerce celFus oi':' manuff'.cturers no segreGated rnatarial. 3 . D e-.)a)tment of Comrne):'ce ce!l"Us o f 0 istribution-no segregated ma te):'ial. 4. Reser rch c:-nc. Planni < bulletiH s r-J.nd recorcis. ::=i. Cocie Author i t-r files. 6 . Coce (E:-. h i Jit C) 7. file . 8 . F2ti o:r:al o.f tlle L :.cHes h:c-nnd '7ith D m : mties, in Yo:-:.1 '.: enc.i. Wanscript o f D e c e:rtber 8, 1933). It \7o. s mai n l : r throu-o;l.1 t:1e efForts o f
PAGE 30
-15 11lte obj -ct of this shc:ll 'oe to secure and c oooerativu anc u.ri tecl. e:?lor c in all matters to tie ,resr, development, or im of tions in the 1-fcndJ.::J':; Inc .. ustry and in dustrie s cor:releted. cnct CO'f.t1io,lting to rmo affecting the uel::.'ere anf -.Jro P'es o": the ianc r'ua.s Ino.ustry in e .ll its to :aster tlE tre.Cu: 3 21: 6 interests of its nembe r s ; to secure freedo m fro1n unjust anO.. unlari ful exactions; to inculcate nn.d mai:1tain just and eaui tabl e J:cinciJles; to eliminate :.Elff'. i or :,>ractices; to asta 0li sh 2nd mc:dnte .in un formi t ' r anCI. eoui tv in the customs and commercia l usages the Incust:ry; to acouire, p reserve, collect, n.nd disseminate business information deemec useful, ::.,C.vantageous or velu"ble to its Members reg . rding the handbag Inducotrv; to reform, correct and prevent an:r abuse and acjust c .omr::ercial controversies, m i sunderstending s or grievances bet; ! e e n members or be ttteel1 its memberr and the tr.:-: o .e; to enforce its <>o.id objects and :pur"?osss e.rnm:g its ::, ..... sucn 6..i sciplin-c.ry and othe r measure s as may be a ::_:::-eefl. u pon by them e..nd as be provicied. by its by-la rs ; D.nd in general to do all matters tending to the improvement of the 1andbag Industry in all its c onmercif1.l asp8cts. 11 (See 3 , oc:,ge l, letter of transmittal Exhibit A, '?e.rt 1.) This org:w i :3Pt i on car 19 into beir:s before the Code era . (see pa::;e 19, 7.: ile the:. e is no c'. ocu.11e::-:.tory evi (ence of 2 . t tl1e various meetin<";s c:.r:d conferences, members of indu.str•r, preferrir.g , I .?.m told , not to nri tten o f tl1eir marq bitter fiGhts, the ':'ri ter is fully a' :a.re o:.: con_,;.itio-r.s t:1;-;.t e.isted lor:. . ! yrior to the enactment of the iJ. I. R . A . ant of those that o-btatned. o . ".lrint_' the en suing mont"1s. The arguments "DresentC;c ... ere U)On the lo:bor situation obtair! ing in a situ,'1.t ion C [ .usee :)y the oi incustry from its . irst anc'l )ri:.ci .. )al horr1e base FelT Cit:o .nd e ther contri. 0uti.ng factors upon I r;rlll touch lc:.ter. (Pc:•.ge 1 6 , this h i story) The shifting of inC'.ustry from the LetroJoli tan City started aom1t 1928 and. 1929 F .nd -:'?S CG:.used, it is clc:.imed and I believe cannot be c1.1s"., b:r t:1e lw .... handed tactics of the labor t.1en in oo"er. As more D.no. more :nanufc:: .cturers loca ted their -)lants in cities c:ar tonns outsioe 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 labor costs, almost un-meetable. It IT"S not hone-v 3 r 1. 1IJti:: . ..,.. .. (;'.'!ere nell into the depression yeats, a o f Jri.e floors that real terness came into e::istence. The N.I.rt.A. l-w. in(: bo < . n \"ritte n e .nr1 rnc:n-r Fen York City manu facturers believecl the: r sa .. an op-portuni t :r to even U'9 condi tim1s if t hey 9811
PAGE 31
-16\?ere c-.llo\7eo. tovJrite into aco0.e for their ir:.c:\).st:-.--:--, L1.bor cla!Osifice.tions, -rJag e scr:1. les a n d hours that \'!ou.lr l ma2:e more c.ifficu:t.t -Ghe path of' tl1e out of-toPn To give a clear cut of t;J.e conch tion.:: th.::tt leG. to the then exi stinr; situation, I quote from a cl.OC 1 lffient on or about Se1Jtember 13, 1935 1vit:!1 the Acministration i:ershall :r?.evie,:: Division ) c-..nC.. orepatecl by the former Code: Directo.:' ;:.,.. L:ittenth:l. G) 11U p until the year 1929, more then o f the \!as located within the Metro:9olj.ta . n area of i.Je\7 York . The industry loc:--t eo . in Ne\7 York has been in contractuc . l relations Fith the Union for a l rwst t11enty years. In the year 1928, the fi"st rn;:rr.ufc .cturer moved a.:a;.r from unionized ce;.1tre of tan Fm York, ailll be'?:a n ma nu.:f acturing in Allento...-m, 1J.Tlder non-union conditio n s . At this time the Union minimum . 1/Jat;es filed by er=;reement rri th the manuf:;;cturers in iJe w York were $45.00 a v1eek for skilleCl 'Jorkers. Aci.Jnission of rrorl\:ers to the skilled branches controlJed by the Union , s o that i n s ome of t hose branches of the industry YWrkers ea:Lne( on a :9i e c e rrork brsi s f rom $ 100.00 to $200.00 in a 44. hour 1.7Gek. I1hose turers r:ho moved from F e , : ' York were une b l e to obtain skil.led r1orkers in their t i ve localities. They com l)ellec3. to emplo}' Porkers 1 r i thou t a n y -rn evi ous e:::9eri ence in the ino.us t ry. Il'!achinery littl e used in indus try invente d to tDke the of man:r of the operations b y skilled . in tr1e York f e . ctories. -:-Jorke.rs in these ner; localities Pere oaid $6.00 or $?. 00 per neek, nr.d they from 48 to 54 ho1l:c s a 11 11:/i th tho tremendous d ifferenc e in l abor costf". , those mamlfecturing outside o f Ne ' Yor k , nere e . ble t o i;;i v e greater values or sell for less , r:i th the result that the r,wnufacturers operating i n :i}e\7 Yor_r. 1.l.ider Union conditions v1ere forced . to meet tl1i s competition by sf'1.c:rificirJ.; their 3Jro fi ts. The suc cess of the f e ; n}1o o f f e r ect the i ncentive for others to fo11o,.,. In the yeo. r 1.933, onl;/ 50. h of the inc.1.u stry sti 11 r e m ained in the Letloooli t<.:;.n e . rea of 1Je.7 Yor;:. J:hos e 1 :-:10 'Tlovecl O':' nen f actories locatec in the eastern ste:tes, a fe'' in the Ci1icag o e.rea, and a fet! small units scCJtterec t hroughout the chiefl" on the Pacific Coast. The was una.ble t o Union conditions in these factories o utsiO.e of New Yorl: . 1 1 ( S ome out o f tm-'n f actories were and aTe uni oni z but 1Jnder clifferen t conditions the.:t1 t h ose o f 1Jei'T York Ci t 'T) • "The factories r emaining in lJe r York ':7ere c h i efl;r thos e making the high grade handbags reauired the m ost skillful norkers. 11 11At the time the C ode \7<.'.s b eing c.raft ecl , the ind . u str: r rras about equally divided betrreen those manufacturers contractual relations with the Union located in :t:-Te\7 ano those n i thout Union conditi ons all of whom vrer e located. outside of lJeyJ Yorl::. Factories in r :e .York \>:ere paying :firs t class norkers ( b)r Union Agreement) $3.5 . 7 5 e . week, and secon d class norkers $32.00 a wee: c General he. l p about $18.00 a ueek for a 44 hour ,,._eek. F actories outside of Neu Yorl: were !Ja.ring their best workers about $20.00 to $22. 0 0 <..1. n oek enC. . c;ene r;:.l hel : 1 from $6.00 to $8.00 a week for a 48 to 54 hour ':7eek. " 9811
PAGE 32
:-17-11Bi tter struggle resulted because of the efforts of the Unionized fG.ctorie8 to er;tablish in the Cod.e n classification of the '.-Jorkers 8 .C cording to their skill and the oyeration s _ at 1 .. ar;e scales r,Jproximating those that Fere being :9aid in Union f actories . Those manufacturers not unionized , to tho of the -rrorancJ the of ;rage scales L: the Coc,e a oove the minimum of $14.00, claimln .. that their nere n o t ski l1eci, that tl1e syste'"'l of '17ork employed in their f a c tories, .:::no17 n as t:1e 11s ectirm svstem11 (not mitted. in 8 Union ?acto r "') cl.id. not rec•.:iro r n : r slc i ll; that ner.r mach iner y anc_ nen methoci . r "revolutinni z ti1e menufa c turing o: e s handba,g s , -ar ticularl:r in factories low price bag s o f cloth, (imitation leather ) to retail at one dolla:t or At this time so;; of the manufa.cturer s making these chec:. 9 bo.gs '.ere locr>tec . outsicie of I.ietrO)Olitan l\re\ 7 Yor':.11 11At the tine t l 1e Code for the industry r r e.s e.col_)t ec. , the \7ac;e scales in the indust-r7 r e2embled a toboggan slide, ;";Oi.ng from $35.75 a week (the minimu;f'J d e man6.ecl by t:1e Union for sl:ilJ.eo . 7 o;:kers) dmm to $6.00 a neel p a io. in same outside factories. 11 Meetings ':!er e so freq_uent, scussi on rolonged. a n d acrimonious, almost to the point o:f blovrs, that one hm7 those taking part found. time to attend to their proc .uction and selling operations. ' Through the refusal of the Ac"urlini str ati on to nri te in to the CoCI. e the asked for classi fication or '"age sce.les above the ninimurn, labor clauses Tiere at last i l'Oned out, but only to a degree , for there nas inserted a provision, Article I V , S ection 2 , for 11sem i skilled", end a rage set f{D'r them. This was staye d in the P:::-e si dent 1 s order o f e .pyrova l &nd became the subject matter of a l ater hearing, proving t o be a co11stant thorn in every one' s si (l_e. Ha.ving ar:!:ived at some semblance c.f -oe ace, dissensions broke out anew over the set u o of the Cod e Authority , the method of selection, and the division o f mem-bership, as be t ' . 7een out o f tOT'n ano. Nen York. This was finally settled , althou.,.gh not to every one's S[1tisfaction, and the Code Authori t:r nas finall• ' set u p a s . . Of ti1e sp011sorir.g or.':;anize.tions, t'-' O p laced no restrictions u-:_Jon membership and. dues rrere not These t-:ro wer e the Associated Hand. b o . g Industries o f .A.'"'leri ca, Inc., Neru York, a n c the h:i dFe st Handba,g Small Leatl1er ::a::es Association , Inc., Chica:;o. The r1embe rs:1.i p of the t ;lirC. Grom? , t ; 1e Industria. l Council of the LaG.ies :randbaG IndustJ:"'f, lJ8\7 Yo ':72. s confine(_ t o manufa. c turers having con tre'.ctual r elations i th the Union. P articu.lE1.rs of U1ese thre e grouys will be found ir. the :_Ja s. 2. Of ficers Cod_e Cor:unittees, Inte rested G-rmms T:1e officers of the various Inc, _ust':"''' .:'rmros '.in o s-.Jonsored t h e Code -..l .. nere: Associated Handba.C' Industries of America, Inc., l-7e': York, N.Y. ( Leather Gooc :.s socinti o l.) 9811
PAGE 33
-18 -Julius Hichel Pre s i d e n t A. H itte n thaJ. Cho.irnan f: 'l. P res. Samu e l Gol cisrr.ith T r ec:-surer f , 'io:ri s Immer ma n S ecreta r ' r J,iaurice S . l iosesson Exec. i & ? e l oinen, I nc., U . Y . l3h m & L i t.t entha.l, H . -:... Co1fsm itri R . Y . 3 e : ; f :; . , Inc . Assoc. .Industry o f c a , Inc. Incor porateo June 14th, Uhci.e r t h e Ja -s o f the State of l:Je\7 York. H a s m e m -ber s h i p o f 1 0 0 concerns t:hrou .. h o 1,1t the Uni te0. Ste.tes. 1-H dY'le s t Fano. b ar.: and Sma l l L e a the:r A s socia. t i o n , Ch i c . a go, I 11. President lst Vice Pres. 2nd Vice Pres . Tre asur e r S ecreta r y H a rry H orris "Jm . A . ' J:a nner S ar.uel lvia lOIJ n on. D. Levine Ec1v . H . Luce Approximat e Liembershi p 15. s Eann ('C l.eill-r Inc., C l1i cago, I ll. Roy a l Leat h e r G oo d s C o., St. Lo'J.i s , L o . Cry s t a l Leathe r G oocls Co. , C hica go, Ill. Hir":'o Leatl1er Goo d s Co., Cl1icp go, Ill. 'fi{. Adams S t . , 0 h i c a g o , Ill . I n d u stria l C o\lil cil o f the Leather Goods i . Ianufa ctur e:rs Inc., N'ew York , F . Y. Presi d . e n t Mich a e l :Bi e nen Vice Pres. S amue l A . J. Ros e n thal S ec. & Trea s . Milton J. Lefcort A pproxi iilat e lv!em be r sl.1 i 9 50. Bien e n D avis Inc., Ner .. York ?.ou t R o s e nthal C o., NeTI One other im:_:)Qrtont Asso c iation c ame into being durin [; the firs t day s o f code W::"i tin,<_;. J1rlis ".7tls k n01.rn a s the lJc-,tio n a l A s sociation of Ladies Hc.ncluac; Lanufa cturers ( f i r s t as P o-pula:r' Priced HEindba g l Innu f actu rers Associatio n ) . I quote the fol l o nin2; 1ette;:t o e!I ,Jha size t:'1e .positio n taken t his a s s o c i ation, t h roug h its counsel , t o t h e fe::lin . g e:"':ir-ting the c o::-:1 c;ro".lps. SCHLESI:iJGER & COUI:'S ELLORS AT: LArf J a m e s C • '.! o :r t , E so . , Assi s t a n t D e-outv Adminis t r ator, lJ. J. . A . Department o f D . C. Dear Sir: Re : . L adies Ha nC! .. ;Bar:: IndustJ?Y C o0 . e . 2 7 0 Ne11 York City ?2, 1933 I n this c onnection Tie b e permitted. to advise you t hat '78 r e p r esen t 9 811
PAGE 34
-19 -the Nati anal As"o cia.ti o n of Ladies H811o:oc:> g ( f orr:er l y l a r Priced :IandbCJ.g Manufa c ture:rc Associ ation nrm c Seutemb e r 11, 1933) -.,hic h has a p r e sent o f f o r t y amon g r:hich a r e incl uo . e.ve its represenG['.t i ve p a::ticiuate i n the hearing on September 28th. I E S : I G V e r y t r.lly yours, & K?IliJSKY By I . E . Schleci n g e r oL:ice r s of t l 1e :;.ra t i o n a l Association of LaC:.ies Handba;;:: nere: P r e s ident I r a R osenzwei g V i c e Pres. Morris A a r e n a u and -:7olf Inc . , F all :g_i v er, Mass. Treasurer Secretary H en:r ; r L e:rers Eti1el Appro:->:ima t e L:emu ership 40. 9811 E eyers lif.g. Co., l ro!'1a l k , C o nnecticu t .
PAGE 35
-20This As sociation took t o the C o d e as a n d remained in tio n lonr; aft e r T h e Hidrre s tern Group n n d . t h 8 s i.la l J loca l Grou-p ( Ha v erhill Ladies H a n d bo.g Associatio n ) nere :i:lOt C'Ctive rJa rticipe,nts i nthes e fights , in fact 1 .-,rer e Trao.e h ar0.l :f m o:r e than i n n.<:1. me, o n l-,r coming into about t h i s time. Of the l a c ! t name d _ Associo..tion, n e h ave no record beyo nd . mention h e r e and. there c . t the o.nd no -oarticula r s a r e at present a v ailable . The folloning uer e the ComE1i ttees forme d : For Associated H.an o . ba.:; Ino.ust r ie'-" o f America , Inc . A. I,r i t ten thal, C h airmc:m M . R . I3i er:.nerl H . Schoenfi eld u . I mmerma n !VI. s. s esson 1\i. G reenbe.:um s. ll utterJ!erl 'l'l.. s. ?... Golc,sJl'li t h c. r..;oss For I n dustri a l C ounci 1 o f L e a t her Good.s Inc. I. Sc h1. -'enhol z M . L e fcort iii . -:ej .nma n J. i < i chel For Miduest e n d Sme.ll Lec?. t i.l8r Associ':l. t i on, I nc. Samu e l M alo1 ; r Zdl! . M . L u c e For Natio n a l o f IJl'lite . t ion a n d Le'/chej:' liO\ r e ltie s (Ther e i s cor.fusion in r ecords as t o correct of t his A s sociati on , sometimes it is r eferre e to as her e g i ven, sometimes as Asso c iation o f T-I and Bag Lo n u f acturers.) Hyman Burst ein Irving 1-.'Ieye r s J.e s nick Samuel Goldc::;m i t h I sidor Sc h lesi n ger Sol Liutterperl For 3eaci.ecl. Bag Association C r e s t Sccnnitiles 9811
PAGE 36
-21' B. FP .Oi>i SUBJ:I OF FIRST CODE TO PUBLIC I IEA::tiNG 1. .3rief S1.unmary of Conferences and :t!e,e:otiations Cor1.stant refe r e nce i s found in tJ.1e .:;enerc::. l fi1.es, Volu."!le A and the trc>nscrirt qf the first hae>ring a s to confe r ences, uro-po sed and h e l d , both in the months and follouing the first hearin& , but no record of tl1esa to be found in the files . . Fei ther is there any record of the m'--21'' b y for I am told tha t because of the bitterness of th-:; fit;htin:; it '.as not deemed politic to kee:p such. In the lit;ht of my o . • n 'molemlfP.cturers) that t h e of the first code craft submit ted. :ere not re)resent.?.ti ve, therefore it foll.o'.7ed their vie;.rs '-rere not as souncl. anC:. constructive as they sho,J.lc 1 and mi ght have been. Thir it felt, nas porticularl7 the c a s e uith resuect to classification of rro rkers , nl1i ch Fe,-, York nan ted , and repre s e n ta tion on, a n(! method. of s e l ection of the Coc3e Authority. raturally Fatior..0. l1 s (see brief i n.corporatec. in trans crij_)t of ?ublic Hearin.:, 2::38 to 263 inclusive ) lt?d to freouent conferences, corre s:pondence D .nd teleg ram s , ',;hich l B .st a .re to be found in the general files. In addition, Col. Lea1 s files, Vob..1.me A, sJ.1oF that meet ir...gs anG_ corres'9ondence •-rere h.elC. u i th of::"icialR of t h e Dry Goods Association ith res;Ject to the discount and term provisions proposed by inclust::->r. A .c;lance over the cornnu.nications r eceived. gives an ic' . e<:;. of i 7no1 s 1 1ho the DepP..rtment Store field, and d.efir.i t ely expresses unalterable op, Josi to changes in terms over those in existence for som e years. Here as i n other ino.u strie s it ' . 7as a cas e of 1 York vs. the res t of the country , coJ.plec. n i th a particularly b nd. ll'l"oor situation in ten sified b y the mi g r atio n movement. Both labor and manuf[ .cturers uere in • .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 and. finc3 . the s ensible a pJroach to t:1eir uroblems. L abor, as re'9-resente
PAGE 37
-22 . In the -oeriod i•nner1i e t e l proceeding the Cor:le, mass production cone in and the c:•verage p::-ice for had. :fc:. l-1_-en f'ror:1 50 and $ 3 .00 to $1.00 or lefs. During that time, h .v i n';: t -1l<:; bottom of cometition b o .sed u:9on labor, inov_st':''.' be-;:.n t o <'.f.cl t o L1 eir p r ociuc t s , of one sort or another, a chan-wter of nccossorie s found only in tJ.1e :1i:g::1er price ranr;es. the ran:;e o:!:' -;aC'.gets in the domestic mar:
PAGE 38
C. PU13L I C HEARIE"GS ON CODE 1. Dates: maior n ersonnel: results The only hearing held took place on Decemb e r 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. M i ttenthal, Associated Handbag Industries of America Mr. I. Schoenholz, Industrial Council of Leather G ood.s ManUfA.'cturers . . E. M. Luce, Secretary, Mid,vestern Handb
PAGE 39
-24The other Tiitnesses were heard in about the order given and as the hearing progressed it became clea r the sharp d.ivision evidenced in pre-code conferences still existed among the manufacturers themselves, between manufacturers nnd labor respecting basic wages, classification homework and hours, furthe r that industry as represented from the O:astern States fell into t w o campsand that in their various meetings had not been able to find. a common ground, and still further thF't the only major 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 hours proposed by and agreed to by manufacturers (see para graph 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..::ers 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 mee t such a . demand and live and were making quite a sacrifice as it was. Labor also insisted th.!=!t home "l"'ork be abolished. The urincipal group using Homeworlcers, Beaded . l3ag insisted thn t they could not operate without such orl':ers. Labor insisted. they TTiust have classification. 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 those of the East were at odds among themselves over reuresentation, since the out of town "'!en felt th8 t having the bul',. of productil")n t!1ey should ha .ve a majority on the Code Authori t;y This \Vas disDuted by the Associated group, the Drincipal sponsor of the code who insisted, that represented 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 their 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 op nosed to any change in terms. These gentlemen gave the Administration to understand thet the discounts at present 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 althoug h 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
PAGE 40
25 The hearing closing at 5:35.p. m. settled none of the major problems' presented, all being referred to conferences. ' . D. FROM PUJ3LIC HEARiirG :ro APPROVAL Eight days after the hee.ring, the following letter indicated thAt final drafting was to be p lain sailin.g, for while it VTas admitted there still one or t w o important matters in controversy, Mr. Mittenthal expressed the belief that all 11ere uretty much in agreement . It is unfortunate the modifications referred to in this letter be found in the files, but the Administro .tion t s then proposed 11set up" for the Code Authority is to be found on nage 6, part 7, Exhibit A. r. James Deputy Administrator, National Recovery Administration, Conmerce Building, D. C. Dear 11r. Worthy: ei"T York, N. Y. December 16, 1933. After a number of conferences had with the National Association of Leather Handbag Hanufacturers, and other interested parties in our code, I find that e are agreed upon practicalJy everything in the code as it was rewritten in your draft of December 12, with these few exceptions. We all urgently request of the folloi"Ting articles, in order that they may be clarified and prevent the unscrunulous manufacturer from evading the fair trade practice 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, w e are seeking to protect the interests of all the manufacturers against the chislers. I am enclosing a copy of these sug gested 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 chang es. There still remains the two main controversial matters that cannot be entirely agreed upon, namely the Code Authority, and the classification of basic I still feel that the Code Authority as suggested by the administration 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 e presentation, ho ever, they accept the Code Authority as set up in your draft of December 12 as fair and eq1.::.i tabl e , and I see no r eason why the National Association of Leather Handbag r1anufacturers, should not do the same.
PAGE 41
26 -The Industrial Council still cling s 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 ' ."Tith such classifications. However, L believe that if you again as9ure them it cannot be done, they accep t this as final ... I have loarne d thRt the Na.tiona l Association of Leathe r Handbag Ha:nufac turers, has objected very strenuous l y to the interuretation of the Hetro politan Area, and that they are r equesting a chan g e -from. thirty-five-miles to fifteen miles from Columbus Circle . I think this could be accorde d the m any s erious objection on the part of the other groups. r:i th the modifications g rant e d nnd the controversial mutters compromised, there is nothing ' really left in dis-cute and there is n othing further in the way of the Code beine, a uuroved. V ery truly yours, A. Mittenthal:ARJ Unfortunately those hopes were not altogether well founded for on Decemb e r 28 t h , 1933 a t elegram was sent to Hr. A. l'i ttentha:l cal.ling for . a conference with the Di vision on the matter of sell_ing terms an.d still l ater other wires sent cnlling for other S 'ee' following . MR. r.HT TENTH.AL COI1l rEIWE JC W :G I NDUSTRIAL RECOVERY 4320 D ECEL::BER 28, 1933 ASSOCIATED HANDBAG INDUSTRIES OF AMERICA I N C 303 FIFTH AVENUE NEi.J YORT{ CITY . IF CONVENIENT TO YOU 'J ILL ARRANGE APPOINTHENT ,_.-;ITH WHITESIDE FOR TUESDAY NEXT ':".TEEK BE HA1IDBAG DISCOUNTS HAVE S i 'LALL D E L'EGATION ONLY. INCLUDIN G YOURSELF BUR K O WITZ Mm PERI-IAPS orE OTHER PERSON Sr.ASONS GRE'ETHTGS 9811 J Ai'IES C WOB.TH Y . ASSISTAN T DEPUTY ADr.iiNISTRATOR DIVIS!ON FOUR
PAGE 42
-27WESTERN UNION 1933 DEC 29 PM 9 59 NA 1284 21 1-r:L : NE'7/ YORK NY 2 9 DR EARL DEAN HO'JARil :: DEPUTY ADI:I NISTRATOR N ArniOl:AL RSCOVERY AD. 1IN ISTRATI O N BLDG DC W ILL BE IN :IASHn;GTON 17EDrESDAY FOR APPOINTJ.:EFT W ITH ADI:INISTRATOR WHITESIDE PLEASE T ELEGRL\.PH HOUR OF APPOI N TI:ENT BERKOW ITZ SCHLES ING AND t.osESSON VIILL ATT:SND = A ITTE NTHAL COJFIBiviATION SHEET JCW:G INDUSTRIAL RECOVERY 4320 THEY.h.TICKAi.. RECOVERY ADt: Ir-ISTRATION, COI.11,iERCE BUILDilJ G , SEN T YOU A TELEGRAM THIS DATE, 0 1 v;HICH THE FOLLO\.-JNG IS A CORRECT COPY: IRA ROSENZWEIG PRESIDEHT :iATIONAL ASSN LADIE S HANDBAG r • • FRS 1182 BROADWAY NE;{ YORK CITY JANUARY 1 0 , 1934 CONFERENCE ON HANDBAG CODE CALLE D TEN At I :?B. I DAY ROm1 FORTYTHREE TWENTY DEPART; EXPECT TO L AKE FINAL DECISIO N S REGARDING CONTENTS O F COD-"' IlviPORTAN T THAT YOU :BE PRESEHT W IRE REPLY SkA E AS ABOVE TO: Julius Eichel, 5 0 1 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, 3 0 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 JAMES C WORTHY ASSISTAI\TT DEPUTY ADM INISTRATOR
PAGE 43
-28. S . els, 3 0 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 14. est St., N . Y . C . H . ar gol in ::n m m tha t a finished document had been p r e u a r e d and, was for immediately there in a f lood of p rotests , I q uote a few o n J.yi taken fro m the files, for all a r e pretty much of the same ten(). r o p p o sitio n to repr e s e n t A .tion, terms discounts and w ages. POSTAL rELEGRAPH N . A 7 1 4 384 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 D EP T O F Cm.IH BLDG WASH . DC RE CODE COVER ING LADI ES IliDUSTR.Y THIS '7IRE T O C01TFIRM TELEPHON IC OF TODAY S TOP 'JE REPRESEUT TirE N A T IOUAL ASSOCIATION OF LADIES HANDBAG M A NUFACTURER S STOP PAP:RS ON :iP ILE 7iiLL INDICAT E MEMBERSHIP ETC OF THIS ASSOCIATI O N STOP WE HAS :BEEN DRAF T E D BY DEPUTY AND ADVISORS A liD IS ABOUT rro :BE SU:rr .IITrED TQ YOU F O R APPROVAL STOP SINCE SUB: :ISSION OF CODE TO COVER TEIS THIS ASSOC IATION HAS CONTENDED Am STILL CO"!TENDS THAT rHE SPONSORS OF T ,IE CODE ARE NOT TRULY REPR E S ENTATI OF I NDUSTRY STOP THE UEl'illERS OF T HIS ASSO CI.ATI O N N0.T LESS THAN HALF THE OF BUSINEs s _ BY THE E HTIRE. Ii' ill USTR Y A H D EMPLOY C01-Jl)IDERABLY L:O T lli THA N HALF J)F AtL W ORKERS ENGAGE D THErEIN STOP THE ISSUE .. ' ITH RES PE C T TO .t1.EPRESENTA.T ION HAS BE:;;N T ENDERED RIG H T ALON G AND DIR ECTLY AT THE PUBLIC HEARI N G B U T F...AS NEVER BEEN PASSED UPON A N D DE BELIEVE NO ADEQUATE INVESTIGATIO_J I N THAT DIREC T I O N HAS B E"'3N MADE STOP WE HAVE LEA R NED BUT ONLY FROi! THE PUJ3LIC PRES S THAT 1]ITH I N THE LAST r.'JEEK CONFERENCES HAVE B E E ... J HELD AT ITA SHiliGTOlJ RELATIVE T O rHIS C O D E ATTENDED ONLY BY PARTIE S ; D ASSOCIATI ONS ;.HOSE INTERZSTS ADVERS E AND I N DIRECT CONFLICT \liTH THOSE O F THE t;EI::BERS OF THI S ASSOCIATI O N S TOP WE WERE. NOT Il\J'VITED TO PARTICIPAT.w I N T H ESE STOP THE EIGHTEEN .DOLLAR. OR FORTYFIVE C E T P E R H OUR L I N IMUE WAGE. Fl,tOYI I N . T H E P ROPOSED CODE REPRESENT THE D EdANDS O F NE'\7 YORK liAlw:fAQTl.JRE.c.S AND THE INTER N A T !ONAL POCKETBOOK U i HOif .Alffi 7 T ILL PROVE DESTRUCT IVE T O A LARGE OF THIS ASSOCIA T I O .: IT H PLANTS LOCATW QUTSII)E O F THE NEW YORK CITY AREA STOP THESE . AGE PROVISIONS WERE IlJCORPOAATED 'JITHOUT ANY A.PPJiOPRIATE SURVEY OR I .r..STIGATION TO ASCERTAI F OR. NOT. THEY ARE FAIR A N D EQ,UI.TABLE TO THE OUT O F TOTIN l.!ANUFACTURERS .AF?EC T E D THEREBY STOP . THE CO.JTROL OF THE COD:S A UTHO RITY IS PLACED IN THE HANDS 0 F 1\TE\7 YORK tiA.NUFACTURERS AND THOSE 9 8 1 1
PAGE 44
-29-IN CONTRACTUAL RELATIONSHIP 7iiTH INTERNATIONAL POCKETBOOK "JORKERS UNION '\'iliOSE IN TERESTS SO FA.R AS LABOR IS CONGER JED ARE AND ADVERSE TO TIC OUJl OF TOWN M ANU1?ACTlJRE'llS STOP WE WA1TT TO GO ON RSCORD AS OPPOSING EIGHTEEN DOLLAl1 OR :B'ORTYFIVE C"SlJT PER HOUR ! 1INiliTn.I WAGE PROVISIONS I N THE PROPOSED CODE THE PROPOSED CONSTITUTION OF CODE AUTHORITY ANTI ASK ?OR Fu.ci.THER HEARING WITH F.ESP ECT TO THE HATTERS COVERED BY THT S T ELBGRAil i SCHLESINGER & KJUNS K Y 270 B !lOATIViAY 1Lr; YORK CITY DAY L ETTER Colonel Rob ert Lea Deputy Administrator of Industry Department of Crnnmerce Building Washington, D. C. February 10, 1934 Re Ladies Handbag Code STOP Our wire last night was base d on telegram received from James C. Worthy Deuuty STOP We have just received copy of latest pro:9osed Code STOP In the previous pro -posed Cod e prepared by the Administration the .Associate d Handbag Ind.ustries of America Inc wae given a representa.tio n of three members on the Code Authority STO P The In&ustrial Council of America one and the National Associatio n of Laciies qandbag three STOP Even to this ap portionT!lent we objected ar..d -:1.01" we find that 'Pi thout our consent 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 t1JITO and to the Associa.tion that we represent also two although the members of this Association do at lP-ast one half t h e vo1ume of business of the entire indus try and liTe employ more tha n one h alf the 'I'ITorl'::ers STOP 'llfTe again ask that all definite action Fith r r.;spect to this Code b e postponed until the members of the N'ational Association of Ladies Handbag Hanufac turers have been afforded a further opportunity to be ful1y heard 9811 SCHLESINGER & KRINSKY Attorneys for National Association of Ladies Handbae Manufacturers
PAGE 45
-30-GOLDS! : ITH :BROTFfEH.S Hr-mufacturers of JJncl.ies 1 Rand :En.gs 38-40 West 32nd Street Je:r York City rational Recovery Administrn.tion, Colonel Robert Lea, Deputy Administrator of Industry , of nuilding, ryashington, D. C. Dear Colonel Lea; ?ebruary 14, 1934. We w ish to enter with you our pi7otest against the Code of F air Comnetition for the Ladies' Hand bag Industry , as to you in . i t s Dresent for!ll, in viery of the fact thn.t the Code as , . vri tten is beneficial to the certain fel'"' of the York We b<:J.se our orotest on the follo•"'inP.;, nnd r.rhich ho-oe and. have no doubt: that in view of 70ur will it every considerB.tion: Statistics confirm our contentin n tha t seventy uercent of the handbags ma.nufactured in the Uni Str.tes are nade outside of Ne"" York, and only a small portion of a r e made in NewY0r k City, the hig h style and h igh priced be1.es, a few dollars a r1eek: more.to an employee does not hurt tne price of the unit in any way. The manufacturers, w ho are in Yen; must have s kille d help vrrith many years exoerience in to manufacture their lines. Today, out-of-tow n rr1anufacturers find it very clifficul t to CO!!roe t e with Few York manufacturer s making the of r 1 .erchandi se, due to the increase in wages made by the out-of-tmv n manufacturers, namely, about which is m a .de up in tho shortening of hours and the minimum scale und0 r the rnA :9erm i ts you to o .pera te. Wo w e r e obliged, i n orde r to coouoratc with the President's Emergency l:ec1su r os, to advance our h e l p nho were r e c e i ving and . 39.00 a week to $ 1 2 . 0(' per weo k, and those getting $12. C'O per wed<: and ovGr were advance d proportionately, as also thoir hours of labor shortened to conform i"Ti th the .r • R. A . thereby ado . . ing many additional hel p to our payroll. Wo that the out-of-tor' n manufactur ers employ approximately 1 0 , OOG workers \7hc r eas the Nol'• York manufactur ers employ approximately 2 ,000. 9811
PAGE 46
-31-The out-of-tovm must continually new help the art of Making bags, the1eby incurring tremendous expense to the manufacturer, and the lTe? Yor k manufacturers, according to the code submitted to you, ask yo u to us pay the same amoun t to our employees, who, a s stated above, must be taught the business from the beginning as against the r:Tev York Manufacturers' employees who have a number of years of ex,.Jerience, a s the Union menbership in Uew York has been closed m Rny years for learners. We are in our olant approximately five hundred people. Would it be, and \vould w e be justified in shutting down our plant and the five h 1 U1dred families supuorted thereby become public charges in order to satisfy a very small of the industry? If the code is ado pted in its present form, w e v :ill have no other alternative tha n to move our plant b ack to New York, which we might mention (is t h e 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-tow n manufacturers and which also adds hundreds of p eople to our payroll. the many other incidental items which add agreatly to the cost of manufacturing out of the New York market. In conclusion, w e ?..gain 11ish to voice our urotest of the Code in its present form, and as above stated, if the Code is signed as it is no w Tiritten, bag s will not be able to be manufactured outof-town and manufacturers nill be oblie;ed, in order to profitably compete with New York m anufacturers, move their plants b ack 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 MAlfUFACTURIN G CO., INC. P.S. -Whereas we employ ov e r five hundred in our plant, if we were to move back to Nen York w e would only need approximately two hundred to produce the sane amount of 9811
PAGE 47
-32WESTERN UNION 19.34 FEB 15 PM 10 18 CC1375 50 NL -WAUKESHA WIS 15 COL ROBERT LEA LEATHER DUPUTY ADM INISTRATOR UASH DC VERY MUCH OPPOSED TO CONTROL OF HANDBAG INDUSTR Y 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 CONDITIONS-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 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 THE CODE PROVISIONS . . STOP 11JE HAVE CONTENDED SINCE THE SU5MISSION OF Th"'E .CO:DE THAT THE SPONSORS ARE NOT REPRESENTATIVE OF THE AS THE PAPERS ON FILE 1fiLL INDICATE 'STOP IT IS OUR \fiSH 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 IMH EDIATE 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 NATIONAL ASSOCIATION OF LADIES HANJJBAG MANUFACTURERS 270 BROAD\vAY NE\i YORK 'C1TY. 9811
PAGE 48
Miss Frances H . Robinson 33 NIGHTLETTER c/o General Hugh S. Johnson Department of ComMerce Building D.C. 8, 1934 AS FOill ilER LIEUTE.TANT COLONEL AGD UNDER HCCAIN A N D HAlliUS I RESPECTFULLY P3Q:tJEST FOLLO,.!IlJG UESSAGE 3 E DELIVERED WITHOUT DELAY TO GElJERAL JO!iJ.JSOfJ QUOTE CAN HOT : KEEP PRICES DO\ffi ON LADIES IDUJDBAGS AS YOU B2SEECHED THEH AT OUR COlJVENTION IF YOU 1JN',iiTTINGLY COUDOlTE A NEEDLESS HIDDEN INCREASE BY A CODE IS INTENDED TO EXACT A PROFIT OF T.lo HILLIOfT :?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 OF DISCOUNT PROVISION UNTIL CO!.-!HITTEE 0::!' PRO!iiNENT RETAILERS CONSISTI N G OF M ESSRS 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 O N CAUSES OF NEF.:OLESS ID:TAIL P:::ICE L.JCREASES J:IENTIO:JS REDUCTION OF PREVAI 1ING CASH DI AS ONE OF THE D1POP.TAN T 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, r T . Y • . Dear Ar. Fox: This letter is in reply yours of February 7, to Hugh S. Johnson. The Code for the Lhdies Handbag Industry has already been recommended by meto 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
PAGE 49
-34-Moreover, a joint commit tee of and retailers under the chairmanship of Mr. Reyburn was 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 manufacturers and which would contain the discount 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 -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 been ih :this Industry at least_ five or six years. The main reas on being that International 9811
PAGE 50
-35 -Pocketbook Union, with whom the New York Manufacturers are 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 d epression. Besides that, are compelled to buy our goods in New York, as that is the market u l a ce., and maintain an office in Nerv York for the sale of g o ods, as rvill not g o outside of New York to purchase. To maintain a New York office, and . ship everything to Yor k City 8nd East of New York ureuaid to New York, also entA.ils an emense. Coupling this with the average out of help, which is usually not as skilled as New York, ata disadvantage. Besides, N e w York City has what is knonn a s a Clearing Hause for n•orkers. When they need te. n extra framers for a day, they can phone to the.loca l office , a nd this is don6 for any other department. im ereas when they take out of town, lay them off when they don't need them, they thereby sta nd a chance of losing them , because they usually drift into another It therefore neans tha t o : r the time we weed additiona l helu, we have to start training t hem again. To avoid this, we try to keep them on. If a framer h a s no work, we give him something else to do, and do likewise in other depo-rtment. This is how we manage to keep them , although there 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 a oout six months. The National La bor Board, who was instruMental in settling the strike, asked us to make all emnloyees back, which we did. Sufficient proof can be furnished tllP.. t we are not di scrimina t in1;, and are dividing the work as evenly as possible betn.een the ienced and inexperienced help. \ie believe this is wha t the Government wants. To keep everybody busy instead of a full week to some 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 probab l y be forced to s hut down. or else eliminate all inexPerienced wor kers. We know the Government do e s not have this purpose in mind, a s it would !"lean so many more ueo1Jle to resort to charity. Therefore, weprotest against the insertion of this clause in the Code, and as mentioned before, w e believe that if it should be enforced, 'Ye would h a ve to close the plant 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 Philadeluhia? . ' Our comuany is employing about t w o hundred to t w o hulldred and 9811
PAGE 51
36 -ten peoule, and the rest of the Industry in Philadelphia is employing about o:ne hundred and seventy-five. the families dependent on these People' s Tiages, it Tiould n ecessitate about twelve hundred additional people going to the Relief Board. Tile aTia i ting advice nhether or not Srou 11ill have a meeting in on 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, & COMPANY (Signed) D. A. IHGB ER, President WESTERN UNION ( 0 2) 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 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 BR I 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 iJ I T'"iiOUT EMPLOYf, iENT IlP IJE ARE FORCED OUT OF BUSINESS TIHICH IS AllAOST SURE IF CODE AS NOW URITTEN IS PUT THROUGH. THE l 1,IEEKER CO hiP ANY I N C 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 H I SSOURI Li.AN'UI'ACTURERS WILL BE GREATLY INJURED BY NO ITAGE DIFFERENT IAL HAND BAG CODE HE HAS SUBM ITTED BRIEF TO HOWARD IDT HAS 0 -.70RD 3EGAill H E G 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 TAKENROBERT L. LUND ( 03) 9811
PAGE 52
-37WESTERlJ UNION 1934 FEJ3 15 PM 6 11 604 135 NL 5 EXTRA MIANI F1A 15 COLONEL ROBERT LEA DEPU:rY AU1INISTR!iTOR INDUSTRYWASH D C-INFORMATIOH LEADS US TO BELIEVE FOURTEEN DOLLAR WAGE FOR UIITATION LEAT"HER WORF..ERS EtiiNENT STOP iJE ARE OPPOSED TO THAT I.II N II v im , 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 ltrERCHANDISE ON PROFITABLE BASIS UNDER PRESEHT NRA CODE STOP EHPLOYEES VIORKING 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 PRESE l; T CODE UAY AlJD ADOPTION OF FOURTEEN DOLLAR UILL I 1i.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 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 , all other di sad vantages and extra e:x:penses. Yours resp. HERZ AND COl i P ANY 9811
PAGE 53
JE'nUC'.r v 3 , 1934 De 'JUty Larl Dea:1 Bor tarc.L vrri t L1,.; the: followL1c; mcmorr>.ndum to Divisior. Acill!L :istrator A . D. lihitesidc was evidently inclL1cd to \'Ti L 1 two o f his ad ri. sors thr . t the me.j ori t y fact ion shouli mee t with the Ac1nini s trator and. uri t B [1.. Code based U110n the Division ultimatrun viz: A wabe minimum :1ot _to exceed ($18) eighteel1 clollArs er week a!ld. a discount -1rovi si on of 3 ' • 1-3 34 : tir. A . D. Vlhi teside Earl Dea:: Howard tfessr s . Jur.l:owit z , Labor EJ.i.1cl I:t tdustrial Advisers, vel tlw Code 112ve :'1et it i oned me L the of the dea.d.lock o n tha t c o d e . T heJr are co:;wi .:ced tha t the a t t emt to ,,et fus.cd b y the ty. there f J r c rec m:I. 1e::cl thn.t we m.lthori ze the major L•.ction, of o.t least v e 1)e r cent of the to ,,1eet with the De:mt;y a11d .r.dvi sers and form'.llate f'. caC. e o n the b'o.s i s of your 'J.ltililatum them, na,11ely: two i:!Lli m a not to exceed doll2.rs Je r 'Neek u.n d discou l t o / t hree 1er cent • . tr. i s :.1ot with the wa'""e O.!ld hour of the code sub , , i tted by the rr1ajori t y , but there is no douht thc.t these llifferej1ces can be r e co:.1c i led i f w e hold. the 1:lhich the:r reco mmend . This wou l d involve a decisio;.1 on your :a:ct t o n_, 1 r ove a code ac;ainst which there was a minority oy1os i t io:-:1 o f ,,robabl y twenty-five pe:c cent. Ecxl Howard Demty AcL-:1L1istre.tor O n thi s memorc:,ndum a r _ t o o e .L'ound. q'.lestio!. 1 ma rt:s agc.:.ins t the f ibures quoted in the second of third and the l ast two lines o f the 1< st At the bottom is a lso a :1enciled OK 9811
PAGE 54
-39-presumably m:=tde by the Division Administrator, A. D. and in of the conflicting cla ims m nde 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 M arch, the battle rage d and sporadic referen ces :=tre to be found in the general files to neetine s the Division Administrator, t he Deputy , the representatives of the L abo r Advisory :Bo:=trd and Colonel Le a . Following what appeared to h
PAGE 55
-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 v arious associations. Approved Code: VI -Administration provides eleven (11) selected from industry: 5 by Associated 2 by National 2 by Industrial Council 1 by Hidwest Association .. Coa !'t: .Manufacturer,s 1 by Labor Advisory Board. Trade Practic e Provisions were essentially the same • . It will be noted that the provisions a:ouroved were a corapromise and as already stated became a fester spot and provocative of great dissension an d widened the rift betwee n and raru1ufacturer. It will also be noted that representation in Article VI of approved code is auite different from the one contained in draft used at the public hearing and revised immedi ately thereafter (Exhibit A, part 7, page 6; part 8, page 4.) The Code wr.s aporoved 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 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. 981 1 3. Date of Approval The Code was approved March 14, 1934 under Admin istrr:.tive C)rder 332-1 and became effective under Article x:r I of the Code on the second Monday after approval by t h e President_. 4. Conditions in Order of Apuroval: Industry Reaction The Order of Approval provided: "1. 'That Section 2 of Article IV be stayed until
PAGE 56
41such time as the Code Authority shall nresent to the Administrator a definition of the term ' semiskilled employee', 17hich received the approval of the Administrator." T h e subjects, semi-skilled and classificntion while treated in the Cod e a s separ Pte and distinct matters, semi skilled in Section 2 and classificRtion in Section 6 of Article IV co de, are in effect nart and parcel of each other. There is no document a r y evidence in .the fil.es which indicates when Section 2 of Article IV written into the a nproved Code. Cert:tinly it .was not in the various sub mitted drafts or a subject of discussion at the Public Hearing, althoug h referred to.by indust!"y in the Public Hearing . (See Transcript of Hearing, Decem ber 8, 19 33.) 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 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 non unionized portion o f industry who did not classify their workers as is done in union agreements, following the sec tion s ystem, (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 class helpers", it is reasonable to sup pose that the Administratio. n injected this clause as a compromise measure, providing ho wever tha t the provision be stayed until the Code Authority should present an accept able definition. To this conclusion is a statement b y Code Director liittenthal made to the writer Sep temb e r 11th, 1935 tha t since industry could not agree u p on classificationYork wanting and op posed to ius in clusion, 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 stR t es, tha t he offered this clause and industry had better accede to it or suffer a worse fate by hr-l.ving a code imnosed u p on them b y the Administrator. The Director further states. thn t Colonel Lea onnosed 9Rll
PAGE 57
9811 4 2 -its inclusion on the ground th::tt such a clause could not • be defined, satisfactoriiy at least, lead to endless trouble. Colon e l Lea was eventually won over hence it found u lace in the urovisions. Could on e s foresig h t been as g ood a s hindsight, the provision never would h 2ve been made for it led, as stated in the nrevio u s chanter, to endless discussion and friction between the rnc:L'1Ufactur ers tnei!lse l ves, made wider the existing rift between labor and industry . It was and is no w my firm belief thR t it is impossible to justly deternine where the line should f all as and semi-skilled. \wen months after it was made the subject of public hearing s June to July 19 0 4 , (See Transcript of such), the Assist& '1t :Deuuty David :S2.rr and the Division Administrator Sol Rosenblatt finding thnt no one could agree, drew an order setting. u p a comi!lission to study the industry (the ex-oense to be borne by inc . u s t ry) and m a k e a finding. (See Ex hibit K, pae;es 22 t ' o 25). Since industry would not consent this order \ r a s ho .eve r never consumi!lated . Prouosals wer e then by the Administrator to vacate the in t h e o ; : d e r of apnr0va l and to amend the section by deleting the t e:crn'"semi-skilled" and the words 11made of any rna t erip.ls ovher than imitation leather". On t h e uoint of les ?lity raised by the Deputy, Colonel Harry Berry, to . .,ho m tbe code was transferred in • • August 1934, J. G. Latiner, Division Counsel, rendered an o ninion (see Exhi"oit 1 ) stR.ting that such could not be imposed over the objection o f a majority of industry. Colone l Berr'J and his As.sistant, Leigh Ore , Colonel Walte r I1anGUJl1 Colonel :Berry a nd his Assistnnt, Mr. Dana Hill, made endless effort in t h e succeeding t e : 1 months to settle •matters but without success anQ ttere it rested when the curtain was rung down . The of ,purova l also contained the following provision: ( P aragraph 4 Or de r of Apnroval Code 332) 112 . That, in Rddition to other ::1embers of the Code A u t hority, there may be ap:oointed by the Administrat o r by such method may . prescribe, in his discretion, not more thfui t hree additional members with privileg e to be chosen from members of the Industry who are not, in the o pinion of the Administrator, adequately on the Code Authority.11 Industry itself hp "ving been unable to agree u1:1on the constituion of a Code Aut hority, the Administrator found
PAGE 58
9811 -43-it necessary to write one that in his judgment would meet the needs of the case. it is evident fearing it might l ater be found in a disclosure of rQrther data that his conclusions wera not 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 this Volumes A and B and General Files are filled with petitions against and l)rotests from Hembers of Industry, Chambers of Com'rJerce, L abor TJnions, Retail Stores a nd Trade Associations, not to forge t lP.wyers thR , t were sent in during the months of October, and 1933 and Janunr y and FebT1.1e.ry, 1934. The fr:>,ll into four major groups, objections to Discounts -L abor -Classification, -lack of wage dif ferentiRls, raDresentation. Annarently almost every one was exhausted by the annroval date for but eight protestc:mts came forward under Executive Order 6205 B, and these were heard in n u ulic hearing May 7, 1934. The follo"ring n.re the names: Hudson Leather Goods Inc., Nyack, New York G. R. Godfrey Company, Ge.rdn er, Me.ssachusetts P arag on Novelty :Bag Comnan y , Ir..c., newburgh, New York Uneeda :Oelt Company, Nevrburgh, New York 1Jewburgh Handbag Comnany, Newbur gh, New York Licht & K aplan 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 v i i th reference to actio n upon Virginia Art see page 85 of same. Also see Appendix M for digest of Protests.) These wer e in Or(. ers Nos . 332 4 5-6 7 with the exceptio n of Art which was aJYpa:..e3.:tlJ l eft in e beyance ancc of this I shall treat l A t er.
PAGE 59
98 11 -44.-CODE A D l :.IN I STRAT L O N O r ge n ization P erso nne l F i e l d ' 'The Authori t v B S B g ov erning body Bud _ ,ets . . Eff,e c t on Indus try
PAGE 60
-45-III. Code AdministrC?tion A. General Preliminary Discussion Reading the foregoing chapters it obvious l y difficult to launch the ne w governing body, ind e d it for a time doubtful if an orgc::mization meeting could. be held. However, the first official meeting was held, A pril 3rd, 1934. (Se e c opy of t e legram dated April 7, 1934, Exhibit N) Ferusel of the minutes of that mt:eting (General Files) indicate the? t t w o . prior meetings wer e held 23rd and. 29th, 1934 . As was to be e.Apected two distinct c einps 1f'Ter e evident, out of town manufecturers sitting o n one side of the Council New York p laced opposite. That custom followed until peace was declared in June 1 934 . Labor r ep resentatives not having bee n appoint ed not present. The first business was thP t of election of officers and the following were elected, rem aining in office until exniretion. H. Sc hot:nfE>ld Sol lviu t terpe l George Meyers I. Schoenholz Chairma n l Vice Chairman Treasurer S ecre t . ary Following , t he Chairman end Code Directors (these last two in number, the n not officially P.ppointed althoug h cogreed to b • r the Board) were Puthorized to name comw i ttees to conside r the important subject of: 9811 Defining semi-skilled pursuant to Article IV, Section 2 , Report on Hand.ic e .pued persons pursuant to Article IV, Section 7 ( e), Provide M inimum Stc:>ncards pursuant to Article V, Section 6, To study question of Homev•ork pursuant to Article V, Section 10, To dra. w up ContrE>ctors egreement pursuant to Article V, Section 1 2 , To draw up Constitution and .By-Laws pursuant to Article VI, Section 8 (b), To provide coordination with related Codes pursuent to Article VI, Section 8 (e), Pl:-n!'ing Pnd Fair Trade Pn'lctice 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'lc y pursuant to Article VI, Section 8 (j), To draw up Label to Article VII, To draw up Regulations of Selling Below Cost pursuPnt to Article VIII, S ection 14, 1inance and Bud get.
PAGE 61
-46-This was a fairiy compreh ensive committG e set up and later minutes show that on the a p po inted members took their v.tork seriously, approached problems earnestly Bnd int elligently, not sparing themselves or-their timG . Oft times t h ey work e d 16ng lPtG , g 1v1ng up Saturdays and h olidays, a nc the Administretio n member being present at many of these Committee meetings speak with kno wledge as to proceedings. If w e dwell u p on this matte r unduly it is that, elthough perhaps unwittingly, the Division Administrator WPS unjust, in the charges made by him at a public hePring h eld June 7th, 1934 . He at that time took occasion to o;enly rebuke the industry for lack oi diligence and for not functioning a s well, as c a . pebly , a s efriciently and a.s intelligently as it could (see T r anscript Public Hearing June 7th, 1934, pages 2 and 3). These reme .rks h a d far r eeching repercussions for the Code Authority keenly f elt their injustice and deduced that the Administrator and his Assistant Deputy wer e irre vo cably com. 1i t ted to labor regardless of the veri ties, and 1fTere not to be trusted. Thus , r,?s still more intensified the feeling b e t vreen lebor a nd manufP.cturer, and the Administration's proble m in Pttempting to s ettle hit?;hly controversial matters made more difficult. At this firs t officiPl Code Authority meeting it decided that a meeting of industry should be celled so that it might look upon its new Board e nd I to be present and explain to industry just ,!!That the Code, if used properly anc conscie rtt iousl y, spelled for them. 9811
PAGE 62
Mr. o.w. FeRrson New York City Dear l>hr. Fears on : 4 7 SOL INC. r iEctu.rers kills t11e entire morAle of' the industry e . nd the very puruose of the Code. Urger every on e 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:et 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 cla im to a legitimete 8nd honorc.ble exrst ence in their business. By doing this me will gain the respect of those we come in contact with in our daily business dealings, and meet with much l e s s resistance than ''le do e.nd at the same time eliminate the a .buses th8t C1re heaped upon us v.rhen we leek unity between ourselves and mistrust each other with no good end to anyone, either to the manufacturer, ret8iler, consumer or worker. Sincerely yours, /s/ Sol wutterperl. 9811
PAGE 63
-48-This I did anc one of the larPLst PttendPnces kno''"n wes hed at the MeAl pine Hot el, re'" York, InP u:f: ctu r ers coming in f rol!l Pll parts of the try. T n i s lilec. ting "'c...S netail Buyers strike wes thre<.'tGn8d if recession from tht Codes Tt-rms ll'a. s not made . (See: EAhi bit N . St-ction date d April 7.) As the v1eeks passed feelings r r.n still higher, the old bu.gaboo "Representetion'', a lways to the forL, to a degree a sane appro,:1ch to probl ems from time to tililL ' prest :nte;o. In I found it n e cessery to halt a Code .h.ut horj _ tv a s and teckle the questions underlyin g thE rem esentc. t i o n proble .. 1L (see Exhibit Section dPtcd and "' lPtt:-r ciL cis1on WflS ' nflde to unite all trade e.ssociations into one. Cri ticisu o f this move "'PS rn.nc ' e by lebor 'I.S .. )eing to b ette r fie;ht the moot-se: 1i-ski hour Pnd icfltion problems, losinr; si.e:ht of tht fe-et thR.t the rrJ.C>,nuf: cturers'. side of industry hed s t ill oth t , r l1Pttl s _fc:>cing t hein anc nf.eded uni tv if thev to tnEmse1vf s • . The Code Authori t ' r s e lecte e .:.nc :'..PtC:: r t;l ected. t'.'70 fonner me!nbers of their 0" ' n industry to hePo n p t '1e Code A.:thori ty ;:lPChlne • . These tvrro !Jlc;n mer e unusu:.: 1ll v ell t::;qui Y'"':'t_;O for their nork, for in 8dc' it ion to heving 8 first l:u01nd or' C?nc matE.riBls used, an unders t . 2nd. i n g 01 styl e , Fill inroorten t to a n indus trv of this chClrPcter, a n e . p,J r ecie.tlo n of the difficu l t t hb indhstrv was "in, Elnd knowing ell the tricks of the t r PCh , had P tc:>.ct, <" vri th and underst8nrin::: of tht1;::nur0ct u n : r s : 81':e -tnd recnr thE;r •;; oe'veloped WhE>t the bc=;sic trouble in VH! ' ; in..i.c Art fee l th ir need for a differnti81. Their o n e r!:ltive "9r8ctic e wps tht n CllE>n, < eu . c=;nd t1 l e co1 pc?ny "'BS brought into obedienc e . ; e shPll hc:. v e occe.sion totreat of this more fully in <" l s t r chppter. 9811
PAGE 64
-49It will thus b e evident that the now body, c\.lJproachlnp; its nrob:!. c!r.s in ,:;:o ) d spirit, J.."'id out e :;-airly COl:rprehE::nsive p r ogrc>rn and no one , C c n 1.-i th justice, cnerge lt"ck or C:.llit ;ence or conscier.tiousness in tackling their problems . The made towerd finding the answers will be, note;d as '.''e progress. The two cnief difficulties fpcinE : the; Code Authority were Representation and Labor r elat1ons, othe r questions were r e lativ ely of minor import2nce. Tims the f pctor n ecessary in ironing o . . t th. E : q_uertion of fair r epresentction. Of course corr:mon horse sE::nse h P d to b e brought into play but since all tried to use this, voe begP n to see as the months passed a of the suspicionE existing at the bef,innin. : , e.nd the Co:l e Authority leading the we.y, industry became united almost l U O pE::rcent, with one major trc=tde yhich is today and. lookir. J ; for the execution of P volunterv ?greement. Hq3 the gove,rning body not approEJch e d its p::..oblems as it did \''e would not today see the glimmer of light leadine a b ette 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; . 1 6 , of this historv we have touched upon these briGfly Pnd it v;ill b e seen whpt the surface reasons we,re, thet constantly kept the. problem at boiline point. However, my own feeling is tnat the y were secondary and contributory. Y eers of soft living l e d to the same type of thinking and for many years labor relations were purel y those of the b argain counter. 'No one stopped to consider that the welfare of lauor did not b egin and end with bergeining over wPges and hours, no one f elt that labor was an intet;rel part of mF•nufpctur ing , none cared a s to conditions surround ing their fpctory rJaturc• lly w h e n a group is made to feel thay are pariahs, dem2nds are perhap s not ?lwc>ys made ' Pith good sound s ense and are not besed up0n existincc:: replities. Such, h ere as e l s e wh.ere was the fundamente-1 trouble labor r elations ano the situation obtaining was to b e expected. Complicating the me-tt e r still furthe r the internal condition of the Pocket Book MC1kers Unic n . Stri'fe had existed for a long while, finally resulting in a complete ove r tune of the officia. l s and the turning over to, so it was stated, the Further contributing to the situati ons comp lexity a mistake, thc.t as Administration Me,mber , I made . The appointed 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 business. He V'78S n o t overl y strong physicelly and was fe.ce d with a oossible serious oneration, or so I was told, and therefore 8Sked meto urge the of an alternate. rhis I did, and in due t i m e Mr • . A. Ste-in, :Olr>:r"'ge r oi the Union on the scene. He IPCI s the direct t e in tv'!_Je to i.Ir. Lubl iner, much inclined to b luster, give,n to not in meetings but aftermerds, c.nd generolly obJection?bl e inhis mann e r . 1/hile Mr. Lub liner 11'7as not e.. '."'el l me.. n I cem b to the cor1c lusion that was used 981 1
PAGE 65
-50as c to a second lpbor p r esent, one only votin.". It wc-s n alizef. t11c alterne?te should only be present 'i'hE.n sitting meJnber v rfl!: absent but it vras not considered , . ,is to offer serious objection. TLis situation did not mal{e for a peaceful .?pnroacli. to invol vin-.g labor anc I f!?, ,_ that all d revr a si "h of relief 'l"hGn as a result of the union election .uDset -a Mr. Laderm a n wes eppointed.. He ho;1ev e r Vl1as not varmly welcoued for it V'TC?S delinitely felt thpt he hP d tiJ.e tPint. \'lith both labor Rnd groups torn vri th internal strife it mey b e seen thRt it diflicult to i:nprove the reletionship bet,. een the tV'7o fectors, end in L'ct Clt the end not En.1ch of accomplish ment in this dir ectio n mav be ere<: i t,.•d to either side. Subordinate to th( se two c h i e f c.i ifficul ties yet pert of the: n the utter of k no vrlt.d .co;e uossessc d oy the industry. The industry beEn in existence for ebout fifty years with never an Fttem')Jt m e d e , l?rior t o 1934, to .e:r'thc r togethe r eny f::-cts respecting itself anc u pon which both l.pbor 'cmc' incustry rnisht hc-ve formed some just conclusions. By : •-ley 1935 the bClsis of P factual structure was in exist ence and at the end we to see something of e picture. (See page s 6, 7, 8, 9, 10, 11, 1 2 , ofthis history, elso Exhibits :B, F page 1 G H N pege 4 Sectio n da .ted July 10, 1935. ) The matter of Home'."'ork was a collatera. l part of the labor problem. Prior to 193 4 there 1nPs but 2 . vague of the question and of its possible effect upon the industry. t\ic:;y 1935. found. completed a first study the. t offered a solution o.:: the (See Exhibit 0 4 parts.) Additional to the before mentioned problems tha t of cost figuring. It is sefe to sey that prior to 'the advent of the Code not beker's dozen had ever s eriously considere d a scientific or ordered to this matter. In the first six wonths of'l935 great wis made in this directi0 n pre s entad to the Administration for consideration Exhibit P, e . plan which el thoug h neve r finall y E!pproved indice ted first steps at leat;t taken towerd thc: imposition upon industry of a useble system tha . t must in the end have helped finencial positions. A thorn in the creptive mermf?cturers' was his loss to Style Pir-=cv, end. for the first ti1ne a reel Pttempt wC'ls me.de for pos sible solution of this proulEc1ln. (See B.xhibi t Q . '\ Pnythins did notexist before 1934 for no ne had e v r attempted to a the folly of some of his corrmetitive pr!:'lctices. 'Strcm.o.;e as it m a y seem in the light of this, complience prest:n t ed n o great for elt:noug h et S1!'70rds points es they were, e very one realized the need of FCme such instrument as a code to put a stop to the foolishnesses practiced. Every one 9811
PAGE 66
-51therefore V''e l co!lie d the Cod f Pnd f'li!lost Pll b elieved the y must make F.ln attt:apt to live u p to it, not cours that v • o uld hflve been too much to _eApect i' rOJn eny hum['n but in the me.in the y did so. The ,..,c.ll kno"n chls l e r of courc::e wes elvreys in the picture but to other of ti1is type fer: cpm e to our Pttention. Hour end ' Pege corrrolriY'Its thPt rep crted the E .:rt.A. 11'• e r e s1nell in number aild trad become cleare r •r.•i th promise of better things to come . or those w h o did not live with the industry durir. g the hectic days of 1933 and. 1934 it is Clifficult b underst!"lnd . just vhet if anything of a d e r ini t e nature was accomplisned by pll the long drav-.rn out noisy i O Pe t ings of this Board nnd of indus try it s elf. ?'or that :na. t te;r I, L"l.Vself, find it hed to pat th'= finger U'J?On c oncrete t nings and. sey this was started, reacned tl1is point, R n d wa s conclude d satisfPctorily or other,,..i s e . Specific w e r e done as r eferred to above enci found in the appendix, but; I fE::el the :nost important p ccotn pll.shment{ of ell a reb".lilding of t h e spirit, F.' r e -examination 6f values, a wei.-.?;hing of position, end ? clinching of the deter:.1ination to fight on and win by 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 rh?ps ' o i ten but living it one feels it in the eir, and 'vas the condition the end as ageinst the early days of fighting and refusal to consider the othe r fello'?• and all that that entails. The m emorandum ' 1•ri tten by the Administration ,:!ember in July 1935 should, I think, be r e f erred to (see Exhibit N, S ection dPted July 10, 1935) for it gives a . su' runary of t his Coc .e Au.thoritv's c-ctivities and the picture P S I it. B. Orsenizetion l. ' ' :hile Article VI, Section 1 of the Ccd e called for a Code Authority o f eleven (ll) r epresentatives of industry RnC the order of 9811
PAGE 67
-52the or e l eetion of three addition a l members to be c hosen from m embers of industry vrJ:lo 2r6 not in the opinion of the Aoministrf-!tor represented but ten were ap'9roved by the o rder of September oth, 1934 (Orde r 332-16). The e l e v enth member vras . to hav e b een sel e ctendbag Incustries of America, Inc. 11Tvro ( 2 ) members shall be selected by the National Associr1t ion o i LBdies Handbc>. g MBnufpcturers "Two ( 2 ) members shc:;ll be selected b y the Industrial Council o f L eathe r Goods l:anufckine; out in tht . ranks of the Internatiohal Pocketboo k Union, t v !r. Lu oliner c>. nd his RlternBte, Mr. A. Stein wer e superseded J anuary 2nd, 1935 ( Order 332-20 ) . bv I. Laderm a .n. The Administration member , O . l , . Pee.. rson, s erving d.th the exception of c>bout t1: • o t hroughout the Adu1inistration of the Code, mes not hovuever officially enpointeC.. until ! .'By lOth , 1934 ( Order 332-3). In April 1934 , Dr. P
PAGE 68
-53officic>lly Ppproved unc e r Orcler '33:?-1 6 daten S epte!nber 5 , 1934 . In , ia y 193 4 evidence of troubl e in the i\Jid. est 1 s ranks to the ::::ode Authority 1 s attention, vr;rious resignPtions took and El ne•rr election or officers delegPtes "to the Code Authority held. In June .J'. H. :Blumenfe1d, ;.:irro ' Le?ther Goods 4::'2 South Chicc:go, Illinoi:::., 'FEIS seP ted (See : . :inutc-s Code Authority . eet.ing s }Tos . 8, 91 10, held respectively i1Aay ?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 ernr.tes. Such , . . f:re prov'ided in the of the ' Associatiofls 2nd considered necessr-ry because most members of the Board hEld fr ctor1es in plPces other than York City and. in Eidd.i tion mc>ny ""ere Ecting AS their o•:n sF-lesinen, 2nd thus ofte n on the roed. The D!"E!Ctice mc>s fo110•' red until lc-te in 1934 ,hen the division out its i1iegPlity. (See Generpl IJeigh E . Ore, AsEist!Oint Deputy, September .26, October 17, DeceL'lb e r 1 2 , 1934). June .23, 1934 , notice of vps ::u . .:lished for the -pur-pose aroon c : others, of c5etermininf ; • : rhethcr the Coo . e Authori t v 1 nr!s truly iieE!r ings :ere bel o , lEIs ted. one day, Rd.j ourned. and r e -ol?ened July Sth Pnd lOth. Iomeciately '9rior to the June hearing a coi mJi ttee of • 1rarring manufacturers had come to ? n P gree!nent to (See r , S ection dEited J uly 2, 1934, and shortl y therer!ter it wrs IPtified at an industry wGeting . At the be1ore mentioned ? groul? of 68 smFll York mariufpctu rers cpm e to light, r epresented uv ArchibFld 2 La: ayette Street, York, .At torneyF t Th6v filed, July 6th, 1934 cert ifica.te of incorporation under the nc?;je Yor k Elnd Leether t'' lanufPcturers .Associ r tion Inc. --i th i''i8.x S . einmpn ivleA. H . sno,., it z Julius :illiem A. Ed w -rd. R. LO'": ' i -wrris H e r rnen hosenzmeig Lichtenstein Herman Fell e r 40 .est ?Oth St., N . Y . C. -20? C rnPl St., P . Y . C. 2 est 29th St., N . Y.C. 5 100-loth Ave., 'i.1 roo klyn, N.Y. 38 ,est St., N.Y!C. -9 est 31st S t., N.Y.C . -258 St., Brooklyn, N.Y. 1605 Nelson Ave., Bronx, N.Y . 1349-57th Str1 Brooklyn, N.Y . es directors. (See C-enGrel :r. iles a . no Fubl 'ic Hearing of June 7, and July 9 E>nd 10, This group, seeking re-presentation, COm-posed mcinl y of Sin811 rnenui?Ctur ers, in f?ct the ChElrge •ra. s made thet th v contrectors posinE; 88 mpnufc::cturers end set up by the Union solely for the purpose of crePting trouJle 2nd sentiment YTi th the Administration, th8t In6ustry did not Pltogether see eye to eye 9811
PAGE 69
-54the Code Authority. Hovever, this may all hc>ve been, within a v-•efk or b•o after the hec=trings, nothing more vre s hearc of the group as such. The Cocle Authority set u p question , , ,es the first subject of the June 7 h ePring. Industry seid the y preferred to heve the Administration Member make the selection of the additional m embers. (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 mpoli tic. During e .nd early fell a strike v r e s ce.lled resulting' in ' m a;ny tnc1rnifa .ctur.ers leeving York. Consummption of the cons'olideti.on move wes not considered feasible 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. Exhibit N, Section dated Janua.ry 17, 1935.) consideretio n given this by the Ad:nir..istre.tion but it vas not until some fe,, dg Code Authori•ty meeting held Janue.ry 3rd, 1935. (See Minute s M e eting #25, G e n e r p l } 'i'les , and Ao.ministration i.1embers report Jpnua.ry 4th, 1935, Exhibit N.) Con solidation in ess ence to Bnc . had it been confirmed would have brought to the H c:mdbag Cbc . e Authority en c>dc. i tionPl tvvo members to represent thPt groun. the of the note d in t his chapter the Code Authority re1Pined originally the S upreme Court's decision. 2. P ersonnel of the Code Authority The 1?1ere the members certified by Associ 8 t ions as .having been elected: B y the Associa .ted Han0bag :If'dustrie s of Ame r ic? Inc. Harry Schoenfeld Morris Immerma . n 9811 President Schoenfeld ; & Volf Inc. 14 East 32Jrd St.' , ' N.Y. C. Presiden t Bagcraft Inc. 30 Zast 33rd St., N.Y.C.
PAGE 70
Richc..r d Kor e t c c La :;i *S o 1 .i1.1. t t e I'J.)erl -55-Presi d e n t Koret Ii1C. Enst 33r d S t . , N . Y . C . P c: r A . I. d & C o . 1 4 33r d St. , N . Y . C . Presidert So l .Iutterperl I n c . 330 F i f t h Ave . , N . Y . C. By the Iuc.\:tsi{,ri a l Co1.mc i l of Lcc:t h . e r Goods l'n ,nufo.c t u r e r s , I nc. Irving Schoenholz *Willic.m K aC.in P resident Schoenhol z & Week s I n c . 15 Eas t 32nd St. , N . Y . C . Vice Pre s . & T reas . Kadin B ros. Inc . 1 3 2 . West 36th St. , N . Y . C . By tho Nntio :1al Assoc ic.tio n o f L d d e s R rtndbC1. g r ,:anuf a cture r s *Samu e l R . Goldsmith * G eo rge L . P r esident GolC:.s m i th Bros. :if g . C o . , I nc. 3 8 Wes t 32nd St. , N . Y . C . PP..rtner :eyer s IIf g . C o . 3 3 0 Fifth Ave . , N . Y . C . By the Liclnest H anclbag 2; S mP..l l Leathe r Wn.r_es Asso c i atio n *S. i1 olou ( P ositio n n o t stn.t e d ) Cryst a l Leather Goods C o . 3 4 S o . Wells St., Chicago Ill. Adm i n i strc>tion .lembers Dr• Paul Abelson, ll West 4 2nd S t., N . Y . c. 0 . W . P ea1 so11 4 5 Broadnay, lJ. Y . C • Dr. Ab elso n , c: lc>"."ryer , h a s been f o r mr..ny yeC'..rs i m p artia l chairman of s e v e r a l incustrie s n o t ably Furs and I1Iillinery . No connectio n with Hand B2g s . 0 . U . Pearson m1 aC::..v ertising man c o n n ecte d YJi t h Dry G oods Pub licatio n s a."YJ.d quite familia r with the di::.tributive problems o f c or. s ume r goods (:;oine; t h rough ar: d r e t a i l dry goods and d e p artment sto r e s . Accredi t ecl t o t e n d iffer e n t industries as Ac!mini s t r atio n l1lembe r but hacl n o c o nnec t ion finan c ia,l o r othe r vti s e with any. First appointed as r ep resentati ve of Dr. t h e latte r p a r t o f !.' arch h e w a s n o t made official U.."YJ.t i l a s state d in the f o r egr;ing p a ragraphs. Representing L8b o r A dvisory B oard PhiJ.l i p Lubliner C o d e Directors and Exec utive S ecre tary A . ri ttenthal M . Ber kov: i tz rio sessrm, v e S ecretary (See Exhi bit T for brea.l<:d. own into types o f merchandise and size
PAGE 71
-56-The comJ?OSi tio n of the Board fGillowed the rule laid d .ovm in Article VI , but it is inte r esting t o examine Exhibit '1\ , compare vJith the accepted gro1pings o f price ranges and soe tha t each wa s fairly T'1e addresses give n are those o f the selling o f fice s which are located i n New York Those markecl v1i th an asterisk are out of town manuf,...,cturers and reGardless of Assr:.ciation affiliations it v1ill be e )On that the out-nf-t,.,vmers obtained frcm the Deputy in charge a fair consideration. Thirty-one mee tings of the Cod e Authority and thirty-seven meetings of Corrun i ttees VLere held, Administration b e ing repr e s ented at all ((}ode Authority Gatherings v1i th frequent attendance at commit tee meetings. Three industry mass also took pla c e . File shov.r copies of minutes of but tvventy-one meetings and there are mi ssing man y reports from the Administration member. The administrat ion .rembert s reports are contained in Eochi bit N. RECORD OF CODE A U T H O RITY r \ iEETI E G J.TUi.iBER DATE OF !.XETiliG PLACE 1 1iarch 23, 1 93 4 New York City 2 11arch 29, 19 34 " 3 1 3 1 934 " ' 4 April 11, 1934 " 5 April 26, 1 934 " 6 Hay 3 , 19 3 4 " 7 M a y 1 0 , 1934 II 8 May 2.6""' 1934 " /1. 9 I.Iay 31, 1934 " 1 0 June 6, 1 934 Washington, D. c 11 June 1 4 , 1 934 New York City 12 June 21, 1934 11 1 3 June 23 , 1934 " 14 June 28 , 1934 " 15 July 5, 1 934 " 16 July 9,19 34 Washing ton, D. c 17 July 20, 1934 • New York City 18 August 2, 1934 II 19 August 23, 19 3 < .. " 20 S ept. 4 , 1 934 II 21 Sept 27 , 1 934 rr 22 Oct. 25, 1934 " 23 Nuv . 8, 19 34 New York City 24 :9ec. 6, 1 934 It 25 Jan. 3 , 1 935 n 26 Feb. 1 9 , 1935 " 27 I ia.rch 11, 1935 " 28 .Apri 1 4, 1935 II 29 I 1Iay 21, 1935 Washing ton, D. c. 30 June 3, 1 935 Nevv York City 3 1 June 11, 1 935 II 9811
PAGE 72
RECORD OF CO: .J..il T'l:EE 1IEETI FGS .!arch 28, 1934 April 16, 1934 April 1 8 , 193( April 2 8 , 193t; April 30, i.:aY 7, 193( June 22 , June 2G, 1934 July 18' 1934 July 31, 1934 July 3 0 ' 1934 August 1, 193(, 24, 1934 August 28, 1934 August cO, 1934 ' . , September 4 , 1934 Septemb o r 6 , 1934 Septembe1 13, 1934 17, 1934 21, 193 4 S eptember 25, 1934 October 2 , 1934 October 9 , 1934 Octo 1 5 , Octo b e r 31, 1934 Nove mber 7 , 1S34 November 1 3 , 1934 l ov embE.r 16, 1934 20, 1934 Novembe r 21 ' 1934 D e c ember 3 , 1934 D e cemb e r 1 5 , 1934 D e cemb e r 1934 Decemb e r 27 ' 1934 'larch 2 , 1935 March 7, 1935 March 11, 193 5 -57TTEE Finance Committee Finance Committee Beaded Bag Group Finance Cor.uni t tee Finance Committee :B eacled B a,g GrouP. Steering Committee Steering Conuni tte e Beaded Bag Group Emergency Committee Cummi t t ee t o s t:udy existing conditions i n the industrie s S mall Committee Beaded Bag Group B eade d Bag Group L abe l Commi ttc e Lab o r Committee Lab e l Conuni tte e Labor Conuni ttee Label Committe e L a b o r Cornmittoe Labor Committe e Lab o r Comrni t tee Trade Pr;;l .ctice Complaints Corrunittee Uniform Cost Formul a Committee Special Committee Scpecial C ommit tee Le1b e l Cornmi tte e Style Piracy Committee Style Piracy Committee Lab e l Committee Homework Committe e :eacl.e d Bag Group Cost Accounting Conunittee Desig n Piracy Committe e Lab e l Comrnittee Budget f.; L abel Committee Budget & L abel Committ e e The above aee t i nt:;s took place i:J. New York City ....... Q,Q,.;L.:L. _____________ -----
PAGE 73
-58-3 . Chnnges in C o,do Authority The following surmnarizes the c l1ange 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 l 1ir. H. Blu'1lenfeld Mirro Leath r Goods Company 402 South r.Iarke t Street Chicago , Illinois in place of the original member f1om tha t a rea, l1Ir. s. Marlov; . C ertified _ t o the Code Authority and. the new member, l.ir. Blu.nenfeld, r ecognized rrith the other members September 1934 (Orde r 333-16). ( 2) A complete overturn in the International 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 represent ati v e . ( 3) Dr. Pa"L,_l Abelson was appointed to succeed 0. W. Pearson as Admini stration Lemb e r but the appointment was not confirmed and as previously stated with the exception of tv1o meetings Dr. Abelso n never functioned. (SE E Exhibit U). (4) Agencies of the Code Authority There nere n one, all work confidential or otherv1ise being C0n ducted b y the staff of the Code Authority. ( 5) Fielcl. Organization 9811 There nas maintained a staff o f six field investigators reporting t o the co-code director I.Ir . Max Berkowitz who vias responsible f o r all compliance activities. These men v1ere r etired manufocturers, practical men of age, ex perience and strulding anct respected b y all. Additional to follov1ing the usual policing :0ro cedure 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 slOFP Y factory practice. Frequent visits were 1Il8.de to almost all f actories except those on the Coast, in Texas and The code Directors tock great pains in the selection of their staff and I can safely say they were of much higher grade than those employed by many other industries.
PAGE 74
-59 VT'Dile no attemp t was m<.!C::..e t o conci.one f ailure t o live up to the Co(e, : earch.Lnc; constn,_ctive excmination r:as rnaCie to
PAGE 75
-60 The Union hF. r e.lreaciy rebistered several complaints for vio la.tions of tJ.1 e Code V7i th the Cocl.e Authority as well c?..S v1ith the _r. R . A . Offices i n tJ.1.e State o f Coni.lccticut acainst the Stylecraft L e:1thrJr Goocl s Co. but t:1e finn instead of _Ja; fing any attention to our compla.L1ts, is openly defyinL; the Code A u t:1ori ty. Isn' t it ctran;se the White ; ,ifg., Co. o.ncl the Stylecraft Leatl1.e Goocls C o . , vni ell firms had. recei vee, at the beginni n g of the year a loan in the amovnt of 4>100,000 f rom the R . F. C . tu conduct their business, should the Code A u thority and the N . R. A.? The si tuc:tion is more menaciuc because of the fact that l.iorris Hhi te is \.::e:ri in a refusal of the Meeker s p l e a , and the Virginia Art file shows a complete reversal of the position consiste1)tly taken them in their p leas for d ifferential s through the 'first year .. or fourteen o f Code life . Other mam:t.fac turers frr"Jm time to time compl a ined, f o r a moment or two at rate, of the consistent position of refusal taken b y the C de Authority with respect t o individual requests nnd pleas, almost invariably cJ..ecis i o n s made were gracefully accepted. These pleas were much of the S $1e tenor, a,;)plication s f o r over time, tw0 shifts, apprel1tices and w a:::;e C:ifferentials. Reference was made above to f alse advertising b y Retailers. An in-9811
PAGE 76
-61-stance of this was a long clr;wn out controversy with one of the large New Yorl: Depa:ctment stores. Checking of E1etropl")li tan advertising indicated that at 1nice offered not be of the materi a l described. cmc:'. .le(_ to 1Jvi thc:ca'.'!c>.l. The ad.1:1inistrc:tion member vras quite familiar with this co-r rnborative. evidence of this and other similc::. r trans actions ma r b e found i n the late Code Authority files now in the hands of the succeedin2; organization. Ste .tistical reports in Ex..."'l.ibit F and included in p a c;es 6, 7, 8, 9, 10, 11, 1 2 o f this l1isto r y are by no manne r of mean::; complete but they give a pictl.'.re of t:i1e character of work done. 6 . DiscL:.ssLn1 of Operation of Code Autho.1..i t y as an Gov.erning Body. In c onsic"..ering this subject o n e mus t constantly keep in mind two f actors th2 .t -for months afte r the induction into offic e o f this Code AlJ.thori t;}T \lver e ever in the foregr our1d o f industry's consciousness. First: A consider able proportion_of p roducti o n was i n the hands of factories loca t e d outside the city limits of New York, who were payins wages much below New 1.mioni ?.ed factories. Secane. : Cocle Authori ty1 s .own sharp division in membership, as between Ne'.7 York a11d out o f town, with the outlander element feeling chagrinect. e.nd WQ+_>se . over the ct.i visio n of representation mn.de by the Admini s t r e .tio:p_. Obvio'l.'!.sly ,this situation matters difficult, for each group found it a l r:1ost impossible t o rise t o their O } )portuni ty of self government encl v:eight dispassionately the p rC?bl ems given birth to in, and by the Code . T1e existing from these factors could n o t b e treated light ly and had if ?OS ible t o be smoothed out. The problem cut s e v eral ways. Out of tovm f a .ctories paying a n a verap;e of considerably less than ten dolle. s par week f ound themselves raised. t o a code requirement of fourteen 6.oll:-:.rs m i n imu m , a raise upset tine their equili bri urn and assurnin;; a cize in t heir men t a l reckoning out o f a .ll proportion. The Hen Yorl;;: f action f elt, n a . t urally so perhaps, tha t the out of towners vro-L l lc, I incl ways to bea t the Code, not yet reali zinc the searching quality o f the police machine th2 t was about t o come into being. E x pressed openl y o r not, the out of t orm men sensed this suspicion and did not tal-e kino.ly :i, t • . After all their honesty of purpose was being impugned before they had a chanc;:e to pr.ove or disprove their eood intent, in other worcls c on
PAGE 77
-62-The firs t thing to 'V8. S to fL1ct a co nr1on :;round. and.. rJor k from t Administr tio : 1 L :.,rc.,shing t o n had unsuccessfully trie d it, industry hac.. _ tried i t il Ncv7 Y o r k neithe r \ ' 'ithout apparently anyv7here, but ti1e Administr.::-.tion memb e r thc:.t unc.'.ern e rth all the strife , there ;12.s '1 feeli:1g , t h .. t give n a fair chance, the Code was a heEven sent gift and could help all a long •.vay upon the ro20. o::. renewe d success, such a s they had once It as upon this pre1nise t renevted. e.:1d continuous effort r:as uc:t. e b y all conc e r ned. ro1d. resulted L=1. the11get to::;ether11 of t h e surruner anc'.. fa.::.l o f 1934. New ;orl:: a unionized city had classification, they wanted such included i:c_ the C.OC.e , they vvere unsuccessful, the open sheps did not wcmt such, co r . lc.,_ n o t .-.ee it, as applied to their own prectice. ALl felt that S ection 2 of Article IV which treated of s e mi-skilled.. .tcl-cen. in conjunction with :;;.>arc:.graph one of the o rD.e r vvar 3 the hand nri ting on the wall tha t classification was the death' s here. a t the feast, the ('gre to be feared. . l\fot wi thsta11chng these :ears, the and his Deputy to the contrary notv7 i thstanding, the openly made statement of labor that in dustry was dodging the issue and so, the t :no wledge :that C -.)lonel Lea opposed its i nclusio n because o f his realization of the i mpossibility of writing a definition, the Cocle Authority did mak e an ee.rnest, sincere effort to s e t up and define the term. It is unfortu nate t h:-t mere written reports canno t give a tru e p1cture of labo r and tunnoil thet wen t into t his, the time consuned. Code Authority t lem bers felt t h e-1;1ere charged with a which they tried to cc:.rry out. Un. successful, of course they were, nevertheless they tried. Good C<:Ui le from it all, f o r more than any othe r fa.ctor it brought to pass a grec:.ter res:::cct for ec:.ch o ther anll. a willinc;ness to see the other fellov1' s vier : Joint . Discussion this and othe r labor probl ems resulted in the public hear .i.ncs of J1.u1e and_ July 1934 and the .:_)rotract'e d negotiations respect ing hours, classificati o n and wa ges the t never were settled at the time of the Supreme Court' s decision on N . R. A . It also had hearing upon the strike c e .llecl i n the summer of 1934.: which gave B;reat impetus to the from Kevr York started some years earlier. This mit;r atio n brought i n its. traL.1 che.rge: by the laoor union a0c.in st two : .all11f;:cturers uncler Section 7 ( a . ) of N. I. R . A . , in th: t the ()Wners h2. c 1 refused c ollective bargaining. These c omplaints caused f'lLr ther and consumed a Great amount of time upon the part of the C o d e Authority and other interested parties. It \vas f elt that the chc:.rges ner e not justifie d :for the collecti v e agreement had expired and the Union to enforce its deman d s had called a strike. In one o f these two cases it developed tha t the partners of the concern, beca-v.se of their financial si tu.CJ.tio n v rhich prevented the obtairr int:; of s 1 ..1.ficient banking accomo dation i n New Y o r k , had been negotiatinG elsewhere for some two years for factor:Y" sites anci. help.' T h e 9811
PAGE 78
-63-strike hc;. vii.lZ been called, n eGotiati ons with the union stopped being off ered, p r ovided they take s ome 200 workers off relief rolls, c..ncl , , o c-_ f actory accomodation manned by e:;:perienced workers, it was n a tural to move, in fact there seemed. nothing l eft for the m to do, if they uere to conti1 u e their business. This case was finally disposed nf by the lTc:.tiona l Labor R elation s Board a s being 11n o case" at least thc-t is the recollection of the Ad.n.1ini3tration Memb er. The other case and flagrant wn. s decided at;ai nst the mcmuf &cturer. HoJ?-e \70r k in the Beaded Ba.:; s ectio n o f the inG:us try wa s always in one's co11sciousness and much wa. s done by the Authority and its Directorate in an attempt t o ameliorate home workers' rates q f pay. E xhibit 0 gives indication of the tho u ght and time devoted to the problem. The matte r wa s not settled. b u t had the Cod e c ontinued it was hoped tha t the plan laid dnwn would 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 stc;ted in paragraphs of a characte r that VTas constructive, and positive rathe r than negative in its nature and General Files, Compliance Files, CocLe Authority Files give a clear picture of this. Statistics give only an :indication of work done (Exhibits::: and S), 9ne had to live with the responsible officers to appreciate the sympathy, understanding, tactfulness without condonation of misbehavio r , VIIi th which t his wor k wa s done. Trac-:.e Practices in ge_neral, discounts and d a t ,ings, misbranding by manufacturers a.n d retailers , style lliracy, cost figuring, retailers acl verti sins ancl offerings, general welfare, relationships with rel.'l t e d industries, received much of the Authority' s thought, tim e and attention, and results were showing in the last few months of its life. (See Exhibits C , F, G, II, K , Q , P , 0, S . X and_pages -48,.49, 50, -51, 52, 58. , and60 of this history). At no time in the mem("lry of the writer was there discrimination shown against large or small, ut of town r:>r in town, south and north, east or west, nor, although l abor will not altogether agree, against labor itself, and this last in view of the t ense si tuo.tion o f some years standing was r ather rell1arkabl e . T • sum u p b:ciefly; perhaps the best evidence o f the success of the C Gde Authority, its paid personnel and particularly its two Directors is to be found in the fact thc-t jus t -'-Jrio r to the Suprem? Court's fa te!ul de cision a dinner wa s tendered to the Directors by the entire industry. From far and near several hundred manufacturers came to pay tribute and to _publicly st2.te their belief in ancl lmowledge of the success o f the work d one and t o e},_1Jress tl;'lei r feeling tha t all b e e n fair and just in their dealings. C. Budt?;et and :P,Asi s nf .Assessment 1 . S ection 6 Article VI of the Code provides tha t : o f Industry sl1a.ll be entitled to pa1ticipate in and cShare the benefits of the activities of the Code Autherity to participate in the selection of the ... embers thereof by assenting t o and with the requirements • f the Code anc:_ sustaining their reasonable share of the expenses of its 9811
PAGE 79
-64administration. Such reasonc.ble share of the expenses of administrr-tion shall b e d.etermined by the Code Authority subjE.ct 1 o r eview by the Admirr is trato r on the basis of v olume of businec;s and/ or .suc h other f actors as may -ue deemed. equitable. 11 Article VII-F . R . A . L abels -Section .. lreads 11All merchandise manufacturecL subject ot the provisions of this code shall bea r .an R . • .A. label, or substitute therefore, to synbolize to purchasers of said mer chandis e the conditions uncler 'Nhich it has been mcmufo .ctured. 11 .of the same article states i n part the t : ".Any and.all members of the ind.ustry may a pply to the Code Authority for a p ermit to purchase use such N . R . A labels, v.rhich peroit shall be granted to them, but only if, and so as, they comply with this Code . 11 S ection 6 of the same article provides: "The mad.e for labels by the Code Authority shall a t all times be subject t o supervision and orders of the Ad.>ninistra tor and shall be not more than an amount necessa r y t o cover the actual reasonable cost thereof, includinG actual prin ing d.istrib"o.tion admini;;trction end su-nervisio n of the use thereof as herein above set forth". Thus leaving financing of C0d e Authority activities somewhat indef inite, hence there was apprc ved July 3, 1934 Amendment No. 1 to the approv ed Code provicling for mandatnry collection of assessments for finru1cinc purposes. Orcler-Nc-. 332:-13 approvecl by Sol A . Rosenblatt, Divisicm Hughs. Johnson, Awninistrato r . First financing was by small loans from incli vicl.u e .l members .of the C<:Jde Authori t;;- • . Money so raised served to pay the small costs o: terrr_porar quarters but did not suffic e for salaries s o th._qt employees. worke'd { o:: some considerable time be:Dore being paid. La.te r a temporary bank l.Jan was arranged which served until revenue from assessments and labels came in. Fr1rn thct point the Authority was always solvent a.1d. operCJ .ti11 g under reaso able costs. T hree budgets w,ere subm i tteci. The first wa;s approved. but stayed, the s e cond a r evision of t h e first, c o v ering one ye2r fr m March 26 , 1934 to March ;.;G, 1935. The' third for one from March 193 5 to March 25, 1936. Of the last submitted. , but a l)ortion c o v ering the period from March 26, 193 5 to June 16, 1935 wa3 a,proved, anC:. subject to an of the CoC:.e by 0perati on of the law, conditionally a_:-)pr o v e d from June 17, 1935 t e March 25, 1936. Period. of 1 . 3/26/34 to 3/26/35 2. 3/ 26/3l'.. to 3 /26/ 3 5 9811 .Amount 133,540 . 2 0 Date Approved Order Ho. !day 28, 332:-8 Stayed June 9, 1934 332-11 July 16, 1934 333-14 (Resubmi ttecl)
PAGE 80
Period o f .Bu c .{s.;e t s 3/ 3/2& / 3 5 to 3/23/36 BudGet Buc.,_:;et BuC_t; e t l o . l. l/3 Ho. 2 . l/3 No;. 3 . l/4 -65 Amount D a t e A : J proved fjjllO , 641.00 l viay 24, l 935 Basis of Contri butiol) o f l ); f the dollar s ales v olu.'Tie of (/, 1/.J of the net dollar sales volume o f lc:1 ;v of the g ross sales volume E STii.i.AT:L;D I iJCOhiE Buc3-G:;et No. 1 ••.............•....•...........• $149,999.00 Buc.,I e t N o • .'2. • • • . . . . . . . • . . . . . . . . . . . . . • . • . . . . • 14 9 , 9 9 9. G 0 Buq;et Uo. 3 •••............•...•.........•••• llC,64l.OO (lst $31,540.CO ( 2n0_ period) 79, 00 (See pages l, 2, 3-Exhibit Y.) Order fTo. 332-25 '• At the e11
PAGE 81
66 1 o , of t .. c.. •• inistration' s business, were resented and this militated ue;i r:t "" 1ot'1 nmctioning. It 1 . 0 co. nointed out thrt wha t nas being done was for t h e n1 otcctio. 0 -the. CoCI.e Authority itself, "lmt none the les s the answer rr. t 11: 1e .:i 0 • 7 our ei t 1 er VYe trustecl or we are not an ": "till think .wt1inistt'ation-is over reachinr; itself &'1d in Cl.!lY ve there. be no excuse for the C.elays. 11 It is to be rememb c reG. tl r t in tic lutt6r c-:.a.ys was J.css d.el a;:r t}1an but there s ill rc!. Llet-. the Yionc.cer, Hov; oh Lord , Ho Lang J It 1es that labe l s shoul d be sol d . at a })rofit sufficie1 t to finance the operations of the Co-cle .A.u thori ty. Preliminary co1 ferc ces :ere held by the Depu t y and. his advisors with the Directors respectinG this anc upon ob jection t 'Nas c.\.cter-minecl thc>" t a levy of 1/3 of tt)o:1 ales woulcl b e and that l a b e l . s should, be s.tion t o its Other 811
PAGE 82
-67I n a11 eo.rlier paragra}Jh of this chn .pter it 'vas remarked that the Directors rrere overly cautious in their financial operations. This perh ops should be qualified by ac.'..ding , tha t they needed to be bec;,use o f t h e mak e up of the Authority. At the bet; ilmint:: of this history it wa s P'Jinted out tha. t nev e r at any had the industry it n ecesso.r:;ti really knon itself, t o obtain a know leC:.g e based upon f acts. N0t h Ewing been accustomed to the idea, one hac"' t o the matte r c ircumsp ectl;y, with a feel inc tha t cne h a c i _ perforce t o crawl before attempting t o wa l k . It must not be thought that over cautio n to the point of hamstringins was the orc'\.er of the ( _ay, but n either mus t it be forgotten that a s t art from scratch, _ 1 e cess arily entails muc h great e r energy than keeping a go:..n_; rnacnine Elovin.r . On the whole financial set up was good and did pennit and fairly ac'\.equate oper ation. D. A&n i n i strQtion Code 1 . A mendr.1en t s The1e v1ere a m.1.rnber o f Hand Bag 1Ianufacturers making p r 01lucts othe r them Hand :Bags, principnlly 1 uggage and fancy goods . claimed that j urisdiction belonged to the Luggage and Fa.ncy Leather Goods Code since from their point of view it was a more advantageous code under which t o o:?crate. With the somewh a t indefinite financing provisions of the Ladies IIa11c.'\. .B8g Code it was necessary t o clarify the situatio n . Afte r discussion the Assistant Deput y it w a s determined w ise t o move for an amendment to the Hand Be . t; Cod e an& such a1hendment No. 1 wa s written, lJassed by the Coci_e Authority, submi t ted t h e Adrnini strata r , o:)portuni ty to be hearcl g i ve11 0 333-12, and final. ly a_)proved b y Order 332-13. In :)reparing the order f o r a1.>pr oval ti.1e A s sis tan t D eputy noted thc:t t j18 3ag Code Authority would be unable , d1.1e t o o verlappinc;, pro vide sti.fffcie11t revenue t o mee t its budgetary requirements. From thc:. t point on there was no trouble in financing . constantly: rec urring question of the semiskilled ci_efi nition COii1i n-; n p for public hearing in June, a special meeting of the Code Authority wc:s held orr the day o . l. : the adjourned meetin g in "Washington, J u l y 9, 1934. 'ihere was introduced a resolution, l.s_t e r C 8 .rrie d , tha t there be deleted from the Coc l e Sectio n 2 of Article IV , and further tha t Section 6 o f Article IV like wise be rel!loved . (See minutes of meeting No. 1 6 July 9, 1934 G e n erc: . l Files) Labor made, strenuous objection to thesG resoh . 1 : tions an( continued so to d o in the ensuing months. An order this wa s drawn up l c t e r i n the year. 1934, but neve r consurrun H t e d due t o the interlock inG q-c_estion o f wages an
PAGE 83
-68snlabili t.,-1 ot so ""OOl , reserving t h e right to ret un e;oocls E>. t will. A t 0:: e ti c , t: i oecr.1s to hr v e been the CR.se, n o11e soods, m1l es:.: for th tnntinl c c, r;e the t they v1ere up t o sc:unpl e . Of l ate ye2 . r s however mm.'cJ. c . .nts :ave not hesitc-.tecl t o r e t urn .=;ooL-:.s for a l mos t any ca1.1..se 11ot,i stci1c'L1,:-; t':ey 'Jere 1: c (e u p br the :11c:nufecturer ii.1 cood f aith c.• c... s} i_)_)e( ' _ rccon to instn,_ctions . i f they foun d business L1 c: sh,n, '"" eriochc oocurence, hc:u:-;_ n o o v e r p as-s ing the buck to c in other worcls eXJ_1ectint; the manufacture r to :)D..Y for hi::; , the retr.i lers sins of omissi on o r c o G E , JL; s i o n • . In the gooc 1 \7i th __ retnilers sel dor.1 iVi t h the p r c .ctice 1 d never H i t h the ;Jell o rr;anized a:nO. f i n anced. r,lanufc . cturer, but in times, such Ds we ht."Ie bE' en the l)r c e of returning c oocls by eve n the so G:r,.llecl re )1.tabl e out lets has ren.ched. monstrous proportions. The Ean{ Code Authority t:i1e p r oblem in earnest, and wer e deoiro'Ls of their Code so the..t it wou lC:. be prohibited, but found. ' it ['n impossible t n.sk t o find a satisfactory so t hc:t no actua l c:.mend.Jnent covering this v1rs ever pres en tee. (See na_;e 2 minu t es, meetint; 'To. 12 • . GenerP1 Files). At.{.-unt 2 , 1934 the Code Authorit y a t :11eetL1t; lifo. 1 8 passed the resol utionJ 11TiesolveC:i. thc:t Section 1 of A rtic l e II be en:e: _tec'.. b y inaertin_:; the ,_7orc"..s 'shopping bc. :.;s, bc-.thinz bag s , handkerchief bags, vani t3' bo:;;:es , cosmetic bass, utili t y bc-gs, l:ni --tL1_:; 'Jags' in the :first sentence after the r:or(. 1purses1 that Section l of Article II vill ns follows: ''The terr.: t c;,s l..S c1 'rein incluc\.o d the ma..n1.lic:.cture of L a liisses, ru1d c;1ilch'ens h[1J1dbc.gs , books c:.nct purses, shopping bathing hnndlcerchief vanity bo.es, cosmetic utility bags, knitting ba;_3s, Eranuft,c tured o f any mc..teriCll of any or natureot. The term L1t"J..1.s t ry1 shall na, t incl uc.le how e v e r , the . am:.fc:..ctu.re of hanc. bags, pocketbooks, purses c;nC .. nes:h bngs manufactured in nhole or' met al. n This '12-S s ubmitted to the AdrJinistrHtion and. aft e r much discu s s i o n rith the interested n o t iced ror ( 367-E D e cember 19, D1C hcardJanuary 9 , 1935. , At it i to be noted i n the Transcript, that as an lt'IS 20out t o be rec•.cho d betneen the opposi n g parties a s t o VhlCh of the ul'111" C'l'ticles brought in ElS e v icl.ence shoul d be included i n the ner. definition, it wa s founcl necessary t o seek C o l o n e l Brady' s 10n ( pa e Li.B t p 1 JT 193c:: m-• ..... :.:., ' -'J.l p ' uo 1 c .ear1 ng, Ja. n u a r y 9, . .....) • _ e:m7 Oiles seeming surprise, Co lonel Brady render e d a sweep lnt; dec1n1on all bags on e.hi bition uere Rand Thi<" statc . .1e11t as clisconc t 7 t ' , . c.:.,_, " e r 1no, C.tea ec .. uuch U1scuss1on, brought a b out mal1Y 9811
PAGE 84
-69-conferences anc: it ;;;ras not 1m til alr.1ost the close of the Cocle tl1at e . s c1efinition 'r!l::>B anc1 subaitted for a1Jproval. This rea(.: 11T h e term 'industry' as used herein includes-the mai'1UI 2.cture of l ad.i es, misses, and children 1 s handbags, lJocket-books and purses, shoppin6 bag s , b:..thinG ba.:;s, handkerchief bass, kidd.y ba6s, v0 .. ni ty boxes, cosneti c ba-gs, ting ba.:;s, manu fc.--..ctured 0-f any r.m terial of c .ny kind or nature. "The term 'industry', hcH'.rever, shall not include artic:i. es cormiionly manufactured by the and Go0d.s Industry used: for traveling J1E":,_;oses, n o r ove: r-night bag s for whatevE r purpose use0., nor eny article manufactured for men's only, nor the manufc:.cture of hand bags, pocket books, lJL:.rses , v ani t;y c ases and mesh bac;s manu f;;'.ctured. in whole of metal.;. _ n The Schechter case decision having been made the matter naturally dropped. The mim)_tes of meeting No. 18 eilsn note tha t the Code Authority expressed. itself in favor of amending 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 reasoning as does later brief writ ten by the code (See Exhibit Z) • .At this sc-me meting 1 8 , j;he follo'\vinG resolution wo.s presenteD. ru1d pas sed : "RESOLVED th2t. the . Qod.e of Fair Competition for the Lndies1 Hanclbat; Industry be amended by inserting e. trc.;.de pre: ctice rule whic h shall be as S ect:ii..on 16 of Article VIII to re.?. d as follov7s: 11'rJo r.:J.ember of the ii1d.ustry shall •repair bags v,ri thout making a reasonable charge f o r suc h revai rs, VI hen SUC h bags ShOW that they have been in use. ro membe r of the industry shall pay any forwardinG charge s for suc h repe.irs. 11 This propose. l led to considerable ciiscussion and cpposition but was fi presented i n the foloHing form "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 cost of labor and materials required for makinG such repair. This shal l not a )ply, however to repairs attributable t o defectiv e worlananship or ma terial s . Actual forwarding or transportatiol1 cht:-rges shall b e itemized 0 1! invoice. 11 notic ed. for he<:>ring ( 367 E December 19, 1934 heard Jp.nuary 9, 1935 ap_Jroved 33, 1935 and t o be lmown as Sectio n 16 of Article VIII Orccer 332-24). 9811
PAGE 85
-70The reasons bac k of this are int eresting. Irt h e relationship u r odu c e r and selle r , there has been a that much buck .. passi1g taki ng p l a c e . Times being goo d ,profits t h e p r o d ucer exc e l l e nt, not much attentio n i s pai d to such matte r s . Reta.ilers finding m erchandise move ment slo11i ng u p , t ake advantag e of every t h i ng p o ssible, no matter uhat, to auicken sal e s an d more particularl y r.hen it can b e d o n e at some one e:cens c . Undoubt edly in g ood t i mes ret ailers \?'O uld not return merchanu i seto a manufacture r for r epair unl e s s it wer e palpably faulty, but o f late faults obviously clev eloped as a : result of 11ear or carelessness .1ere charge d to The r etaile r ho11ever, it is claimed, char ge d his custone r for r c p : :l.ir but o n the other hand asked the original p roduc e r to make such at n o c ost to the retailer. If these statements a r e correct, and w e a r e assure d they a r e , one must admi . t it to be a reprehensible p r actice and anyt h i n g o f a legitimat e nature looking to11ard clean ing the stable of b a d nractic e is t o b e desired. (R e f e r to 98 to l03 T ranscrip t . P ubli c Hearing 9, 1935 . ) D esign Pira cy is an evil ':"!e h a ve a l uays h a d n i t h us. The brains of t h e creative 1 orld as n ell as t h ose of the legal (pat ent) h av e been turned o ve r and ov e r lookin g for a che c k u pon the light minded bentrr, 11h o hesitati ng t o illegally ones money or property, have not t hought i t amiss t o steal ideas from their more creative brethren. All g ov ernments. hav e ov e r the years ta.ck le. d the subject, and as far a s o ne cru1 quickl y h a v e not been dltog ethe r able to find a s atisfactory ans11er. C e r t a i n l y the p u blic hearing held January 9 , 1935 de v eloped the d ifficulty of obtaining a meetin g o f m i nds. (See pages 68 to 98 Tran s crip t o f Hearing ) and it is Tiell t o look at Exhibit 11hich give s an outline idea o f the t i m e and t hought put into this by the Code A u t hority and its off icial s . The Admi nistratio n had n o t made their decision a s to the advisabilit of including this a s an aoendment nhe n the act declared void and s o the r ested. The minutes of C ode Authority l.!eetings indicate tha t at meeting J o . 2 l_hel d S ep t embe r 27, 1 934 a prop osal t o amend the Code by adding a se c t 1on t o be lmorm as S e c tion 8 , Arti cle VIII cov erir 0' Destructive Price Cut.ti ng as ma
PAGE 86
-71-leather, or the lining of any framepocket or p1.use n i th leo .ther in handbag s selling at less thc:.n 0 0 per c 1ozen i s m1fair comy;ti tion. 11 Earlie r in this history it wr:s pointed out tha.t manufacturers having gone as fa::c as they co1..,ld with com:9eti tion based upon labor costs, becan to add gadgets, thus starting a race, of sound practice. The above proposr. l V'as a first step lookine; t oward the building of a sane r view poi11t. Naturally the cliffering view point B,J11ong manufa.cturers themselves o:'fercd difficulty in reconc.iliatio n and it was decided to lay the subject ovel' in the hope as time 'went on ihdustry vvould come to a rea.li zatio11 of better end selling practice. Fi:omenor:,, here as in all othe r industries whe-re the practice is followed, wa s quite troublesome, although but a relatively small :9art of the inQustry operated in t his mqnner, viz: handbeading , hcndcrocheting handembroid.ering and until July 1, 1934 handsewing,. AfteJr July first this last was to cease. One c"..oe s :not .nee d to enlarge upon. the indecencies sting in this character of incnstry, nor the diffiuclties surrom1ding attempts to govern it. Labo r insists it cannot be done and therefore should. and m u s t be O'lltle::red, which is easier said than done. The Code Authority and its' Directo:cs made great effort t o mee t the si tua tio:1 and :9resen ted tc:> the Admini s trctio n a rather comprehensive program to\"iard at least a partia l to bring decency and order into being. In the files of the Legal Division there is a copy' of a tentative arnendJnent to Section 8, .A;:'ticle IV. for the purpose of a commission wl1ich shall establish piece work r ates for handbeading, handcrocheti :ag and handembroiderin g . This is dated. June 28, 1934 and sets up tha t 11no membe r of the ina:-u.stry shall compensate home workers at less than the piece wcrk rates established by said Commission, said Commission shall estC'.b l isil piece work r.ates which shall be equivalent t o a minimum hourly rate of 25 for workers continuously engaged. Said Commission shall be supporte d by members of indus try engac;ed in the manufacture , J f handbaes by means of handbeading , handcrocheting and handembroidery, such members of industry shall contribute to the support of s aid Cormnission by a method of assessr.1e11t to be a pproved b y the Admi n i strator,. n There i s t o be foun<;l in 1..;xhibit 0 a r ather comprehensive brief a11d other covering the subject and a discussion of it on pages 123 t o 132 Hearing of February 1 935. 21, 1934 the Code Authority passed a resolution adopting the report referred to in the preceding p aragraph and instructed the Director to prepare t:1 e . 11ecos sry resolution end forward to the Admini s tre t or. (f.Iinu te s meeting N0 , 12, 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 to preparing a n arnendmen t to the Code, it wa s so intended
PAGE 87
-72 June 7 , 190 , to July 1 0 , 1 934 anQ reference to it is to be found in pa5es to to L52 c>nd i n the supplement (complete) of the same rit • Labor strenuously the proposal on tY!o grou no . s first, home ork ilt <'11 :Lorrn is iniqui taus end. ca;:'.:'1ot b e controlled and seconci. the pro posal set U") c>.:1 hm..r rate of 1)ay lJYJer than called f o r in the Co<.1e; A reprcsentati ve of t l1e Wo 11en 1 s Bureau, DeJ!.?.rtment of labor also c-ppeared in OlJ)OSi tion, 'l'' i th respect to the so called 11r , ytr... ical rate of 2:5 per hour11 r:nd on the further ground the t their recorc.s cl investigation showed, tha t many of the skilled home working women vrere ec>.rninG; a rate hit;he r thc..n that, further that home work C"'nnot be l)Oliced c nd ought t o be abolished. (Pat;es 374 to 379 Public July 1 0 , 1934) T e never re=c:cll ed. a conclusion oein( ; more or less inter -,oven with the entire labor provisions, neverthe less the Code Directors rnac-:..e co n sistent effort to bring c>bout C?, b etter state o f affairs. February 7 , 1935 n otice o f hearing was J_)Ublished(No.-367 -F) and the her> ri::; t oo l p l...,ce befo r 3 Colonel ."/c:.l ter Deputy Admini n tr.:-.tor Febru8ry 28 , 1935 to consider the f0llovrins proposed amend..r.lents : 9811 III S e c t i o n 2 shell rer d as follows: n ,ro ,erson em:;)loyed in shi}?ping , clerical or IJf_ice vror k . , Ul11ess he i s employed in a a.::;eria l or executive capacity and earns .not less a n thirty five ( 00) dolJ.P.. I'S per -,eek , sha.ll be permit tecl to work in excess of fort y ( 40) l:ou-s week averaged over any one month pr vided, however, a j_)C'Xtner, officer, clir.ector, or stockholder or a. merJber of the L1c"..ustry enhoyed in productive labor, shall be considered an employee for tle of t his and shall be subject to the labor provisions thereof11• Article VI Section 8 (c) sha l l read a s follows: ub f th •ec 1 mem e r o e Industry shall keep accurate ' 1r b1e l ational Industrial Recovery that doubt exist s as the .?CC'\J.rec of any s c h report, so r:mch o:' the per-
PAGE 88
-73 -tinent boo k s , r e c o rds and pape r s o f suc h m emb e r e . s may b e requireo. for the v erificatio n o f such reJort may be examined by a n agency agreed upon b e t wee n the Code A u thority and such memb er, o r in t h e e . b:-:ence o f a n a greeme nt, b y a n a_gen c y alJpoiDted by the Code Authority a n d appr oved b y the N2tiona l In c;_ustrie.l Re c overy 3 o ard. If a m ember o f t h e Ind u stry shall f ail t o f u rnish cccu r ate rep 10rt s , covering any o f f o regoing matters whe n req uired by the c ode Autho l ' i ty o r the .rr8.tio n a l I n clustrie l Becovery Board suc h member shall mak e available t o a n a gency E _ 1 } ?0inted by t l 1e Code ty w i t:p. the approval o f the Nationa l Industria l Recovery Board. s o much o f t h e pertinent b o o k s , reco r d s aJl d papers of such 1.1e mbe r as may be required b y t h e Code Authority :lith r e s_pect to \'lages, hour s of labor, conditions' o f eiTilJloyment, number o f emp loyees a n d other m atters necessary for the effectuati n o f this Cocle11 • .Article VII Section 11 to re a d a s follows: 11K o nember o f the industry shall g r ant c ash eli scow1ts i n e xces s of 3/10 E. 0. H . E xceptio n on .:;oo c-:.s sold up to a nd_ includL1g $27.0 0 a gross, no members of the i ndustry shall grant c ash discounts t n ex c ess of : 9,/10 E. o. f. Anticipatio n may be allow ec , . a t the r ate of per annum. N o m e mbEE' of the industry shall g r ant quantity and/or discow1ts o f any n ature n. Add a nen sectio n t o Article VIII to b e know n a s Sectio n 16 to read a s follous: 11Fre e Combination Deals no m e mber of the Ind u stry , s h all directly or indirectly give w h a t are k nown as 1 free deals 1 or 1 free merchandise' o r 'combination deal s ' whereby a join t total price i s char g e d f o r handba.::;s alon g with o ther merchandise All bills c.nd invoice:s in nhich hanclbar:;s c.re one o f the items , shaJl set f orth sepa r ately and definitely t h e charr;e of the h andbag a lone". l'Jei ther o f these .Amencl.TTient s were eve r a ppro v e d and were s ti 11 II in when the act cea s ed. I n a .11 earlie r chapter m e ntio n was mad.e o f strife vvi thin Unio n r esul t i1 1 g i n e. compl e t e o vertu r n o f officer perso1 m el. The most c o l orfu.l of these o f fici s .l s., the most persuasive left U11io n ranks t o tcke c h.r.:; e o f Labor Relations f o r the tt.en l a rgest .;lcrri s o/h i t e later Stylecraft Bag Comp any a t a sal ary of 000 per c=mm.1P.l. H e lc:.ter r e j o ined Union ranks and afte r t h e bri'ak in his Union decided. t o open a f actor:r , f inance d and opera t ed. o y mP.n of the craft and fellow w1ion ists . ::Zc-, c h o f the men "Lmu.erw r o t e a p011tion of the capital needs, a nc1 ec:_c h 9811
PAGE 89
-74-0 c . , J j_ r:,-:; 0 l-: corrp." .ny c . n c the sllo') "'ns eo . ns a coooerative. Still others r io. li!:e ise enc'. t11e il1C.ustJ:"'T ::as fE'ced. i th a br of hour b :r U1e subt.er.::uge of !'len clE>.imin:r; to be com pc ny officers. ..J:e;nce the _Jur:Jose of the first Jropose.l. Again in f'n earlier ell[ Jter it is : J OLltecl.. out tha t this in. c .equote. , n o t c-.s e::1;licit in respect c9S it m i se.llins terr.1s "tao been estr-:blis.1ec'i. 8.nC" thout for meirr years. It necess.::.r" t:1['t t:le res:9ecting term!: o:: be:ore for .::;rnrOVC'-1. Th i s servec. to the -hole cuesti on of Discounts see 1 9 to 83 of Trai1scrip t of ::!'ebru.!"1r-.-2:3, 1 93:) . T:1e ::'ree Jeals Combinqtion D e B .ls uro-)osr.. l ielt necess nr:r b e of the for al1 sorts of free ir.iti:-ls for It 1:as but nnot:1er forr.1 of the {_evil <'ro , mc' the 'stump. See 83 to 86 of the ' T rcw--:scriJt Public ; re aring, 28, 19'35. • ' . I n this chE J t c r it is ell to stete thf1 . t the t "' o 2Jl1en d . _ ment c; e:,YJrovec1 on d. those ")r O•Iose(. l1e. o a :;qoc!. effect upo11 industry. It rs ncde :mo•n to i nC:ust:-,. b-r J":lblice .tiol1 to.nr1 ord of mouth, the Cod.e Authori t'r \7c:.s G.oine: and there cene about a thc9 t their Code Authority 7CS on its toes, kc1dir: _;; troub!_esome -)ro'9lems in a tful ( , i c not o ---;ree in c3.et a i 1 tb conclusions rea c h ed., out it '-rc:. s felt 2nd believed t!1at e1in1: ing bacl. .been develoDef. '.lith a quieting effect. 2 . Interpretations (.: . ) The r e rrFLs but one inte!"'p r etation mad e under this Code (Administr
PAGE 90
-75-under Hand Crocheting , it being a natura l operc:tion for home '.:ork . O n t r e o .1e:r .1cnd it is G.ifficult to s e e by any stretch of the imag inc? . tio n it could b e considerec.-;_ a s croc:1eting11 or E c omi n s unC.er such a genera l for it is a totally process. (c) Discassion of The Ore er is e::ulici t e n a . there seems no fu:>:"b 1 e r co1Tlr.1ent needeC. . . 3. anc . Stars 1: o e.xer: mtion, ere grP.nted 1.mder this Code. The minutes of Code Authori meeting s annf . c?nc l "Dermi ssions to .,..,o rlc overtime, differentials, a So u t hern rate , ap urentices, ani to .ork t r o shifts, out the Cod e _ uthori ty rejected all such on the broaf genera. l , -:::rounC.. t11C'l. t conditions in the industry did not narrc:>nt One hearin-g Pas h eld Lac• 7, (l o. 367-A), unon e..policctions for e::er'l'Otions b•r:-Leather Goods Co., Inc., N•rc?.ck, 1 \ T , Y. exemption Art . III, Sec. 2, :: ncl for 1 erT1i ssion to employ l.ea:::-ner s in C\.ccord rri th Article IV, Sec tion 3. G. R. Godfrey Ge:,rdner, l 1ass . 3J:emntion from Article III, Section 1, and Article IV, Sect:ions 1 . anO. 6. Parason i ovel ty Bag Co. , Inc. , Uneeda Belt Co. , Inc., 1 Je'.-be r g Handbag Co. , Inc. , Licht & Kc:.plan, Inc., all of r. Y. Exemption from Article IV, Section 1 and to em ploy learners, Article IV, Section 3 . St r nd Leather Goo&s Co. , Inc. , ! ; e, . : Yo J.• . 7. to employ learners, Article IV, Section 3 . Virginia Art GooC.. s Studi0, Inc., Vi r gini['.. Differential. Und.er orders 3324 5 6 -and 7, by Zarl Dean Honarc3 , ell of these petitions Virginia Art Goods Studios. The situation :urrounding /i r g i nj_a Art ias al •aJs difficult and s ome\h1at becloudec. Tirginic: clPimed exemption '.7i thin ten days after approval of the Code, in that they .:ere not i}arties to it. The Code Authority pointed out their in the major syonsoring orgenization and failure to resi -;n made them parties to the Code. In the public hearing of i • I a y 7, 1934, thev uere permitted. to file briefs. As far as the files disclose, 9811
PAGE 91
76 -action on thei r all others h e a r d being denied. i:o cvio.ence C[:ln b e : ou.n d that .formc-1 <'Ct i on ,::.ss ever ta.ken ,.r oon irgi•i a A r t but it i s cleo r that a t a c i t a J . ) rovg l t o exemption r r e . s iven. Thi s gave rise to muc h b itter criticism by t h e Cod e Authority 1 i c : 1 f l<".red u n r nther bc;.Cll y .h e n i n July 1934 i t ua,s mad e };:no u n that p further a s to b e oen eo.. l J othii1C d e finite c erune fran t : 1i s and the me. t t c r alonG all t h r o u.sh fall a n d '.i n t e r of 1934 and 193 5 a t a l Most every Cod e Authorit7 b i tter resentment being v oiced ove r the fc-ct tha t Virg i n irArt operB.ting in t l 1 eir or:n nay nithout to Cod e r eauir e nent,s. The Cod e Authority insisted that undue influence hnd. bee n a nC:. ?c:-, s beir , f' e : e r c i sec., a nd. found in a d i f :f'ic ult untenable po:iti on s i n c e the cQ.se as consk.ntly used as a n e. amp l e b y offenders i n e :;:t enUE.tion of their or.rn r.1i sd.eed.s. The Code uthority and i t s Dire ctor s f elt could d o no t h ing a n d it not until Deputy Colonel I ;en gum c:mCl. h i s e . s!='i stD.n t D a n r Hill took l1old. , that succe s sful steu s '7e r e to iron o u t t h e s i t uption. Thro" l g h the good off i ces of the DEnut7 1 t l 1e C ode Direct or, ; :a-x tz proceeded to L :.rnchbur-; a nci me. d8 a of o perations. He made certain recom m e ndations i th respect t o p lant operati o n s anc:t tl1e instal 1_ation of a cost s ystem and. found evidenc e of the abil i t Y of Virs i nia Art to pay code .rc.ge s . Reference t o E:-:hi b i t A. 1. por t i .on A pril 2 0 , 1935 ::;i v e s i n(;_i c a tion o f the success a t ten dir.g theJ.ast, a s 1. 7ell as a hi story of the c a s e . 4 . Oti1er Administr ntive .?.ctivities a n c a:::encie s . a . T rade Pra c tice Complaints Commitbee On Septemb e r 27, 1934, lifo . 332-17, a plan of organi zation a n d cove r inr r ro.c.e Pra c tice Comp l aints a nci. the appoint m e:1t o f a C o mmit tee : •a" f'.l).)rovec'. or the A d ministration. The uersonnel o f the Committee consiste d . of t h e fol1. o q in-r: : 9811 .. : illim n C . Pros_i<.lent ::ri llic: m C . ' .rth Co. , I nc. , 31 32no Street, York C i t 7 . 17e.i Yor1-:: : .:c:-nufecturer maldne-b e :-s in r e te.il 1)rice from $1.95 u p to c:t nd. over $4.95. .3u rstein, P r e s iden t Cl1arles Surstein & .Jros., I nc., 325 F i f t h Avenue , Yor1 ( C i t , . A n 01..1.t of to -:-n m ..... nu::"< cture r : D a:;s r e . n.ging in r e t e i l pric e ? r oo $ 1 . 0 0 to $ 4 . 95 . ;i?J: .arschau e r , ? resi d t m t ; :
PAGE 92
-77La r enee < o s s, Pre si dent En terprise Inc., 352 ifth Avenue, Ken York Cit''. A l { e' . : York Lanufr'cturer ma Ling a one Drice line to r e tail at $4.95 kJvlication for ap!Jrova. l of t llis committee Tias first mad. e unG.er authority of a resolution :,>assecl bv the Code Authori at meeting Fo. 4 helo. A-Jril 11, 1 934 (see iiinutes in J.l) but it ' :ras not until the follo•:ino Se•Jtember and the committee hel d but one October 9 , 1934. There .-as also submitted , a t that time a u l a n o f "9rocedure, nhich \""."i t h some change '.ras also c : oproved bit B . 1) • The nlan called for a National Comr.1ittee as ell as Divisional e.n d a1bdivisional cornmi ttees for specified territorie s a nd . purposes. 3ut one committee, the :i\ Tational, \:as e v e r set u:9 a n d . for re
PAGE 93
7 $ . . to the omini s t ''t' t i o n July 6, 1 934, but never approv e d . a nd. therefore . l J i l e s . ) Di g b y 4 -232 4 r . D a v i d Barr NATI O HJ'.L RECOV ADi i T N I STRATI O N 4 5 . N eTI' Yor k C i t y June 28th, 1934 As s i s t ant Deputy A o m i n i strator, Di v . V , NRA Department of C o m m erce 3 uilding D . C. Dear r.;r . Ba:-r: SU3J 2CT: Consti t u t ion 2.nC:. b-.r-le : ... s o f the Lc.d. ies1 Handba g Code Authori t-r I transmit h e r e r:-i th for your 2.p:9r o v<'-l thr o e c o n ies of t h e constitution and b7l a s for t h e La.c:3.ie. s1 H
PAGE 94
--By-Lavs (continued) Mr. 1i
PAGE 95
80 For some real?on not CLiscl.osed this rrwtter nas until October 1934, '.'hen on the fift h da•r of thc:t mor:th tho <:'.menc ed b y-Las rrere r e submit ted c>nc apDroveO. er OrC:.er 032-19 . (0.) Other There were n o acJr:1iuistrative e .ctions or <"E,encies . . uti1ize6 . 5 . Other "Dhases of Core 1\cmin i strati on not a.'Dove. A Tra0. e Al?soci<.tion OJ. JOsitive h a s be-en unl:nor m in this InC:.ustr'r •Jorh<.•:ps t11e onr; C.ealint ; onl.v Tii t h collective c:gree ments. Just n}rr they e:ci steo. e ren ir: l1D.me i s hard. to understancl, for not being l1erci. min dec. so to s int ust "'' ' not r::.deouately support for-r:7D.. d 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 .irectorP . t 0 r.ent far Rfiel d in their r:o r : , tine the neGc' of oui lC.ing a c lo t inoustry, cementing c;,ources of c.mc. onn a n d be t ween '.iholesa. lel s , retailers & n c tl'1emselves. r r he-r !<::e-1t close n a .tch aoverti of o fferinfs by r e t ailers , both anc3 special, lcept c1oRel•r i n to".lch -r!i th s tyle arret color tr .. nds, constrntly met rrith t!'C' .d.e aS'JOcie.tion executives a;-:d mer: of i:ndustry, allieD. to or u::,>on t heir o•. n , fo:r these men h2ving e . v ision, realized. hov much mi:':;:1t end coulo. be accomu li shed their Code set up. The Code Autho:ci t? itself \7hi::. e of the vnlue of such P-ork 11hen tolci. of it, could not on, rrere not menta.llir geared to it, and without the leadershi;9 o f men suc h a s the trro directors, 110 uld never have thou:;;h t of sue 1 tin s s , least of all realize d their need. Given another yea:. . o f o:')erati o n t his group •:rould. have found it self, r roulo. have 10101-n itself, ;oulc}. intrenc hed itself, W OUld have become fully conscious of their need of such knorrledge and of the llility that f rom it. Evidence in the Cod.e Authori tr files clearly indicate the gains macl.e. 9 8 11
PAGE 96
9811 81-OPERATION OF CODE PROVISIOl S LaQor Provisions Hours Wages Administrative Provisions Trade Practices ... ( .
PAGE 97
IV. OPERATION OF CODE PROVISIONS A. Definitions A s 5tated in Section a , Chante r One of this history (Page __ 3). the definition included in the auproved code left something to be desired for constant request s come in for clarification. liThe term 'industry' ac:-used herein includes the manufacture of ladies', misses' nnd childrens1 handbags, -r:>ocketbooks, a nd nurses, of any rna terial o f any kind or nature. Tde 0erm 'inou try1 c:-hall not include, ho,7ever, t he ma:rJufacture of 1andbags, :ro cket purses and mesh bags in whole of metal.11 1. Overlapping The trouble lay in the f act that many articles falling generally into the handbag category, vrere made by t 7o other indus tries not consider ed as handbag manufac t u rers viz:and Waterproof Specialties Industry and Luggage and Fanc y Leathe r Goods Industry. As the firs t named title that group were producing many articles that becauce they made of waterproofed materials, naturally fell into t heir nroduction line, and yet which to a degree belonged to hand bags, since were designed to be carried in the hand for various utility uurposes . _ ' Taturally such manufacturers did not wish to ope rate under more c odes than necessary and oppos e d their inclusion under and it became-necessary for the Ladies' Handbag Code Authqrity to m ove for an ar1endment. The -r:>roblem with t he second group was involved with both Sanitary S1Jecial ties and Handbags . Almost s i nce t ime began '-.romen have used some form of a retic u l 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 the Denuty Admini strator indicated at the public hearing January 9, 1 935 was that Handbag and Luggage Code Authorities should get together and agr ee uno n the division, with perhaus a consolidation of the tviTo, so closely allied indus tries, as being the best answer. In the case of Sanitary Specialties the Ass i stant Administrator made the ruling referred to on page 86 this hisotr y . The amendment nronosed was in process of settlement at the close (Notice of Public Eearing No. 367 D.) but in the meanwhile the offic e r 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 that time ever come, greater care must be t aken in scrutinizing pronosed definitions and see that each is pronerly embracing , but at-the same time determining where and what are dividing lines . These cannot be determined satisfactorily in industries such as these, uuon merchandise departments in 9811
PAGE 98
-83the 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, a nd .uch must be kent unon a fairly even co s t ulane. To do otherwise keeps t h e l abor uot boiling and of course makes for friction and trouble on _ the labo r side , a nd can well make for destruction of a well established industry. Perhaps a n answer is to be found in minimum wages and hours being made similar in all closely related industries . Tha t at least vould eliminate much of the controversy that takes place in all such cases. In t h i s last, one cannot of course overlook the difficulty involved, and yet so long as a n uneven situation exists, with related ipdustries arise and are magnified and since you are bound soone r or later to have trouble over thes e matters you might just as well take the larger dose at the beginning and have done with it. 3 . Wages l m 1 1 A • eve s ; :'! 1 n1ma , ve r ag e Section l, Article IV, page 3i-of the code states that 11exceut as hereinafter Drovided no employee shall be paid at less than the rate of thirty-five cents (35d) ner hour.11 Section 2 of the same article states "that no semi-skilled e moloyee e n gaged 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 oroducts covered b y the provisions of this Code, made of any materials other than imitation leather, shall be uaid at less than the of forty-five cents (45i ) per hour." Thes e are the only t w o r ates of pay provided a nd since the last was sta yed in t h e order of approval we need only at this uoint be concerned with the firs t named. Exhibit G, 1, naragraph 2 ; page 2' paragraph 2; uage 4, paragraph 2 of the Mittenthal memo on the industry, gives a picture of the wage situation obtaining P.rior t"o the cod e . Exhibit F gives a statistical break-dow n of nresent day distribution of the industry, disclosed in Code Authority r eports . If, a s cla imed by out of town manufacturers, the. larg e 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 p e r week, to a minimum of Sl4.00 weekly. Taking the manuf acturers statement in t his resnect, with a large grain of salt, my o w n observation of processes used in out of tow n f actories, leads me to conclude that a full 501, of thos e engaged were definitely affected by and the classification break-down included in E xhibit F this out. 9811
PAGE 99
2 . Industry Compliance Of the 87 l abor made , but 37% were of wages, and well ove r 5CY,b of these from one state l ; !assachusetts. See Corrroliance Compilation b y Colonel Walte r Mangum. (Also see Exhibit R.). 3 . Skilled W?ges Section 2 referred 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 a n d as ma.y further be seen b;v examination of Exhibit K , much time a nd effort was spent upon this subject and all without avail. It was a comoromi'fe clause placed to placate Jaber and New York Manufactur e r s , and in the hone, that from it, would come a substantia l increase in earnings to a f airly large number of employees. Coupled with it wPs section s i x 'T)rovidin g for a permissive classification and basic rates for the more skilled classes of labor. E xhibit G, nages i-2-3 and 4 . gives co ncisely the labor situation obtaining in the industry 'T)rior t o the Code' s adoption. Adjustment of wages a bov e the minimum There were no provisions for an up ward adjustment of wages. 5. Mal-Adjus trnen_i w i industries In naragr a nh A, page . 82 of this chapter, reference is made to t he difficulty existing between t he Sanitary and Waterproof Special ties Manufacturing Industr y , Code No. 342 and the L uggage and Fancy Leather Goods Industry Code No. 42. The Luggage an d Fancy Leather G oods 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 a gainst 35 c ents for male and 32 l/2 cents for female in the Northern States . It also made provisions for learners t o be pai4 during a six weeks not less than so% of the minimum. The Sanitary and Waterproof Specialties Ma.nufa<;turing Industry Code made provision, that the rate be 35 cents per hour, excent that Apprentices b e paid not less than 28 cents per hour for the first six weeks and thereafter a t 35 cents ner hour. The Ladies Code nrovided a r ate of 35 cents per hour, with no ex c entions and a permissive clause for learners with no snecified rate. Obviously when auestions of jurisdiction over certain products arose a they cUd, t hese r ates became disturbing, and mor e especially with Luggage for it was felt tha t that industry had not an efficient Code Auth ority machine set up. 98 11
PAGE 100
-85-As pointed out .in above, the. matter w a s being adjusted by we. y of a def:lni tion' amendment. at the close. . 6 . Posting of L a bor Provis ions. Industry comnlied 1001 with the Dosting of labor nroyisions.with t h i s , to be exoected curious result. Certain out of to'vn factori.es concluded it w o uld be w iRe to cor.1e to an agr eer.1ent with the union, but somewhat unon o wners rather than union's terms. Rates of Day were agreed to but collection of union due-s . was made in the off.ice of the factory and uniop pfficia l s denieo access to factory floor s . In the last month o f code life em1)loyees were becoming restive at naying union dues, stating they could not see any reason for so d?. i!1g, since it was the code and not the union that was f . o.r the pay envelope increase. What the outcome of t his -qnres. t w ou,ld hp.ve been it i s hard to say. Th e f actory owners, . w hiJ,.e anxious .to .have with the union, felt the of insidioul:l . . made by unions, and therefore insisted with their_.eml?lpyee .s, .. union agree;nent wEts poli-tic a nd w i se. :.:.: . , , ... 7. Insignia r 61 Since this was a l abel indus try all merphandise A. insignia and it was extremely difficult for a ITlQ.nufA.c:tur:er .to of his product v i thout a l abel. Of course he W R S not nermi tted to' have labels if he were not in comoliance. _ .... . :.. c. HOURS 1. Effect of Code on Industry The figures fr.oril various sources concerning . .emp.;toyment in the industry are at w ioe v ariance so that it is to say. what effect shortened hours hao unon the industry . Ranging from a quotation of 15000 (See Exhibit F, 1')age it i s to be noted . thflt . the Code Aut:nori ty's mont hly reports from industry (Exhibit F)'.show but annroximately 6000, exclusive of ernployer s and salesmen.; . Of . these renorts are not comnlete, and since they are not, it i q .difficult to come to any conclusion unon this point. Industry itself reneatedly said to me that shortened hours han increased employment but not to any great degree. Reneated requests wer e made for to work t w o shifts and for overtime as well as for learners but the Code Authority refused t hem all without excention, on the ground did not warrant. Sere again migration from New York had a bearing . Almas t . all of the moved factories had relocated themselves in . smaller center.::;, where no l abor, or at least but a sma11 number, of a .skilled or partially skilled was available. (Using the term skilled. here, is of course, meant, those f amiliar with or used to of any kind). It follows therefore tlla t it was d'ifficul t to find necessary man power to produce at the neak seasons of .Easter and fall.and early winter, hence I do n o t believe much increase in the number of people put to work was made • 9811 . . ) i . , • .' ' r
PAGE 101
-862 . Effect of Tolerances, peak provisions, various differentials. There were no tolere nce s or differentials provided for in this Code. The West and South were desirous of them but the provision as not included and industry, taking it aR a whole, set their fq.ce against them. Reference is m ad e to Exhibits V and W to illustrate reasons and position tak en by the Cod e Authority. 3 . Industry Comnliance Reference to complianc. e data gathered by Colonel Walter Mangum and the Comnli a nc e of the Code Authority contained in Exhibit F and also those in Exhibit R shows 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 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 made , and one needs time to absorb what is involved even in a first step. 4. Mal-Adjustment Oth e r Tndustries There was no 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 PROVISION S 1. C hild Labor With the excention of one g rou: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 Massachusetts a rather sho 'cking situation came to light, and 1t 1 doubtful that but for t h e Code , any but local officials would have ever known of its exi<>tence. T his group hit upon the 'idea of manufacturing a t yPe of bag made by weaving strins -of leather. They wer e G reeks and the 1 eads of eac h f amily lived by their and childrens ' sweat, This was storyned by the Cod e Authority. (See Exhibit G, p , 225 . , paragraphs l and 2 a lso Exhibit X). Since child labor is a constituent part of Hor:1e 'Wo r k the discussion of the second group is carried on in the following aection. 9811
PAGE 102
-8.7-2. Home Workers Home Work has existed for some years in this industry but mainly confined to hand crocheting, hand embroidery and hand beading. Such tyoe of work is used in the beaded bag division and was nermitted under the Code, but it was further ordered, tha t in conjunctionwith such State and Federal departments and other agencies t:1e Admin is tra tor might designate, the Code Aut hority should study a nd investigate the problem of home' .'TOrk, and make recommendations for its effective control. l:a nd Se wing in the ho m e was also penni tted but only U..l'ltil July 1, 1934, tha t being considered sufficient time to eliminate the (Article 5, Section 10, Code). R eference i s made on pages 50., 63 his tory to t he manner in which the Cod e Directors apuroached the nroblem and Exhibit 0 indicates their conclusion and t heir recommend ation. 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 ate 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..rhose working c aoaci ty is limited. because of age or physical or mental handicap 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 actory receive for similar work, but in no c a e shall their cornnensation amount to less tha n seventy percent of t he amount required by the minimum 1age nrovisions of this Code . "(b) Tha t the employer shall at onc e nrenare and transmit to the Code Authority a lis t of such excepted persons stating name, class of occunation, vrage r a .te, length of service and reason for excention. This lis t shall be revised un-to-date once each month and transmitted to the Code Authority . "(c) The proportion of e xcepted nersons to total em-oloyees at any time shall not e xceed the nronortion of such emnloyees on the nay roll during the week of July 15, 1933. "(d) The Code Authority shall have the right to investigate and disallow any such claims for exception subject to review by the Administrator upon anpeal by emuloyer or
PAGE 103
"(e) The Co0e Authority shall reT)or t to the Administrator within '-lree ( 3 ) r1on and froin tir.1e to time thereafter tn f ffPct oi the cmer11.tio:1 of this provision, both gene1...:!.Jy nT!I.l in c w es of hardshi-p." At P.mr:et.i.r. '; Me e t. i "'lg _ i . C t , uf '.:hs CorJs .!• .utll>.ri ty held May 3 , 1934 as (; o:nmi t t e e c:'l Ha1 • . ,:l 1 . ..:a "Due d. pers -pre sen ted the CO!Iil. ! ITTBE OH PERSONS A meE'tii'.g of the :tee w : s ::1el d at the office of the Code Au thori t:r c: A:')::'i 1 :?. (), J. o Mes s r s . Ln :.1css , Ch airiian , and C. were p rer.ent. The U . S . o f Iaoor in regerd t 0 F..r.pJ.cymAllt o f '1h c.ll'L-.\'):re ..... whir:h by executjve orde r of Fe1nunJ.y are ext.:;nC.-:;c . to ali . Codes 1Jreviousl y auproved and t o 1P-an--nc....red o Purruon t tc t hef.\e regulations: in aecr:rrdence with A.rt icle IV, Section 7 of tnc C cdet e l e Gcmf'1. i ti.P.e l 'eCvP"f:lends the foilowing: All vrho 'vish to e:nulGf hand:. capned persons below the mi:nr:n::m 'lr-ge r::,..1st tLir. urocedu-::e: 1. m'. 1st be nv1 e to t h e St9.te Ar:.ency def 1:::;na 'Sse b y ch0 G, Department u f Labor f er. a c:-rti'jcat c . an-r.-:::..1ca1 ion. must be acc:omp:-mi-'3u :by 'tLle Lice •:.nr is c ertificate. 2 . Sta t e certificate i s obtained, a n i " to JIJ m : . .l.de to the C od e Authority f o r the e!TI"'loyme:::1t of suc h workers submitted, Lc.w:nnce Moss C l..lb. l ' For some n eculiar ,reHson i t O.T)DG r., t thi f; indus try, with the excentlc'1 c f homew0:rk sc. .. U .. on, 1'.':1:-: rH't had r.anclir.aoned ue:rsons in it. 11'::->rk3J' ing w:, t.n r 8f e 1 to such e:rs is to be four..d. in fi cs and so fa:c as I ("q, . r e 0 all no au1Jlications covering t hem were eiTrr m ade t o t : 1e Cude Autr.ori t ' • " 4 . Anmentices and Lea rners. ---. ----------The CoJe cor..tains but one to l e arners, section 3, I V r ::tnC. ll"<:.s pe':'clssiv8 o:1l y for i !' cads: "Tlle Administrator ,....tay, n.d0r exCt;l)tiun"l. l A-nq. u:r.on such conditions as he may prc""cribe, :1e r n i t a n emlJer of 1jL1 e industry to employ learners at rates below the minimu.rn , age herein established." 981],
PAGE 104
-89-Many annlica tions for nermission to employ learners were mar.e, but the invariable custom was to deny such. The C o de .Authority were desirous of having as ne arly perfection as In their judgment learners v1ere not necessary, and the fewer exceptions made, the more nearly they believed would be the attainment of their objective, perfection. This being, so, learners wer e not and could not be exploited. 5. Other Miscellaneous Labor Provisions Section 3 of Article III which stated 11The prov1s1ons nf this article shall not anply to outside sale. smen11 led to considerable argument. This group uf 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 were 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 that 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 conditiuns of emnloyment auproved or prescribed by the President. Standard. Section 5. Forbiadance of reclassificatiun. Standard. Section 6. Providing for safety and health. Standard. Section 7. Related to State Laws more stringent than Code provisiuns. Standard. Section 8. Providing for posting of Labor Provisions. Standard. Section 9. No modification of established nractices relating to vacations, etc. Standard. Section 10. work forbiddance except for handbeading, hand crocheting or hand embroiderng. See Section D, this chapter. Section 11. Provided for observance of Code Wages and hours by employers in other industries making articles coming under this Code. Checked closely and by moral suasion, observed. Section 12. Requiring responsibility of manufacturers fer observance code provisions on the part of contractors in their employ, Followed and checked persistently. 9811
PAGE 105
-90-E . AD l. of Records Q -----. -Sub.ection C , section 7, Article V I of the code stated 11To obtain from member: of L"te l!:dustry suc h in!ormation and reports as are required f o1 'lle of the Code, and in addition to information requi1ed t o b9 su.Jm:ttaC ro all or any of per CtJS ' '1. to cc(.ie ;:'"'all fu.r_ish such information as t e k111 •. r:uy d eem nec:en".<'.r Y f o r the purnoses recided in Section 3 ( :::t) of the Act, t2 :db le. Exhil-) i t t:.te ext8Y'.t of ge.thered . Exhi"b1t N St:ction J.g,ted Yarch : . 3, e.lso refers to this subject. Ko out i d a gency for collectJ . o n of this material wP. s used, the Code Authority ::;r:-.3ferrin g the of their o w n office staff. Such material wes kept a. confider..tia l and there were no comulaints as to leaks . no definite T)rovision for investigation of records was made in the ;ade, the Cod e Directors and their subordinates did, whe n they had reason to douot correctness of figures suunlied, examine books so f a r I know without question of right being raised. There vras not c ontained in t h i s Cod e a clause nroviding for Liquidated r amCJ.E,cS. 4 . Other The other Administrative prov1s1ons: Compliance mac hinery set up, writing of tutio n and b y-lcw1s. c oo clination of this with other industries. of a budget EL d collacti. on cf assessments, the setting 1.1.p vf Fat:. I'radb Prac.;t.ice a:1d ?Ja,,ning .i\.f_e:1cy, t: h e r ecommendati of Uniform Cost 0yste'1l and t.:.le stu l y of style 'f.Jir acy are treated else where, also see Exhibits H, P, Z , B .l, C.l treating of same. F. PRIC E Al\l-n .ACCOUNTIJ G PROVISIONS I, S ection 7 o f Article VI, provided for the recommendi of a t and/or acc-Junti:;t; pvstem for erch division of the indu.:-try c.:1ct .::tlso in Section 14:, Artj cle VIII forbidding selling below cost. 98 11
PAGE 106
-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 It w as, 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 11the 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
PAGE 107
-92a. Stop Loss Provisio n No provision. 7. T erms of Payro ent Sect. :Lon ll of 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 per annum. When it b e came to t h e 0utside world that the industry had suc h a pr: V1FlO i 1 in the new code, t!1.e w a r 'Jilas on, and never ceased to rage, C.u-::-ir.6 the c:md succeeding the public hearing of De0em"'Jer 8 , 1933. After 11 the fight WEts r e oTJened by the National He-tail Dry Gocds Asscc:iaUo.r1s Fox at every op-portunit; r, but industry stuck to it., s gm1s a n d founG. no great difficulty in getting and holding the retailers Naturally the first few we eks after annroval were difficult and all sorts of ways were devised to ci1ange the inte:r.. t any grea t success, and as the months e n t by l;he new t e ::r.s were c=. n ac:ce-p i.c d commonplace. Pages 24, 33, 10 of this histo:.ry1 tc::ll t.he story of the controversy and Exhibit G: pp, 246 pP..r , 1, a:i.s o p:o .. 22q pc:tr. 21 and Exhibit H state the history and argument; supuorting the industry's position. 8. C oo-oe:c a t ives No provision for such. G. TRADE -----------Trade Practices of this Industry were embodied in Article VII of the as or1ginally approved, and a new Section 16 was approved unde r Adjn'nistrqtive Order 332-24, May 23, 1935, which of never b e c ame effective. 9811 The Section 16 proposal was as follows: "No membP-r s h all renair any used bae; unless a minimum charge f 1.., • d . h o ,Ji 0er ua. g n n e to cover ; .. e cost of rna t erials and the labc r on sue h llo m sr:11Jer of the indus try shall pay for any of the foi'\rvarding charges on such renair." Section 1 of this Article read: "No r.1ember of the industry shall p ublish advertising (whether r adio, display or o f any othe r nature), which is mis leading or inaccurate in any material uarticular, nor shall a n y member, in any wrty misrepresent any goods, (including but without limitation its use1 trade-mark, grade, quality, quantity, origin, s ize, substance, nature , finish, material content o r prenaration) or credit t e rms. values, policies, services, or the nature or form of the business conducted."
PAGE 108
-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 of fending store's management and succeeded in checking it. With respect to misrepresentation, however, there was occasionally another stcry. The Directors co:rective rather than punitive measures brought about meetings between buyer and so that such g ood.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 de veloped 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: 11No 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 groups was always being exercised to force a change in selling terr.1s by changing the actual prices marked . Section 3: 11No meTYJber of the industry shall withhold from or insert any quotation or invoice any statement that makes it inaccurate in anv material particular. II Impossible to check. Section 4: 11No 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, 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 involved 9811
PAGE 109
94or the storP (r-imbels) the Directors took u o the mEltter with the :aet t c r .' us.iness 3urcau a n ' i t "le line wi thd r1.wn with nroner a'l')olo;ies f:.:om the store O ' ne:r s , A . nd P.. tremendous sruawk f ron the mn.nuf;1c turer. P"e however wCI s fLw lly convinced of his error and g r acefully Section 5: 111-Jo member of the Inr'lustry s h8.ll uublish advertising whi c h refers inaccur a tely in n.ny ro' ltedal uerticulq r to any comne titors o r their goods, 1.)rice's , v.:.lues, credit terms, T)OlicieR or services." As stetsd in note commentin g on Section 1 of this charyter the industry i s not E'. n Pclv ertising Section 6: " N o member of the industry shall nublish or circularize unjustifi ed or unwElr :""C'lnte d of legal nrocee.dings w!lich tend to ha rass or have the effect of no r<'.esing comr1eti tors or intimidati their customers." There is nothing in records t o i ndicate any violation of this 1Jrovi sion neither did I hear of Clny. AD11arentl y the inCiustry does not in t his m a nner. S ection 7: 11Xo ;nembe r of the Inr1ustry s h all give, or "TJermi t to be given sPcrot pP..yr:Ient o r Rl.lo' r <-nce of rebR t e , refund, commission, credit, or 1.menrned. discou_flt, 1)1'L-Jther in the f orm of money or other wise , or th8 r-. 8CJ.:-et o:x-tension to secret uurchE'sers of suecia l services or uri vi le;;es not ex tendr:ri to R ll ryurclmse:rs on like terms and c on cli tions . 11 " i e h ave no rec o rds t1-).is but belief is tha t it is a provis i on t , if not qo..i t e i:nY?oss1.l)l e of checking and therefore of enforce:nent. In ;.1eetint::s " i t:1 morrioers of Industry, one 'frequently hec.r d the s tfltemen t that buyers <•re on the ne.yroll of c'Brtain mn.nu f acturers. Section 9: 11 No tnember of the indus try shall give , permit to be given, or directly offe r t o give. anything of the "DUruose of influencing or re"'arding Lction of er!'lnloyee, agent, or re-oresent a ti ve of anothe r in el 1 tion to the business of the e m ploy e r of sucl1 emDloyee , the m inci n e l of such agent, or the re"Dre sented narty without the i.
PAGE 110
-95This nrov1s1on like unto many others h a s a mor a l effect but beyond that" 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 uurchaser, ,,rosuective nurchaser or 8gent. ;!hile is is not so urev.? .lent r:s in many other industries, Hand :3cg Manufacturers ,velco;"1ed its inclusion in their code for the nractice was beginning to show its The nrovision was found to be F deterrent. Section 14 c ooqs shall not be sold below cost a s com nuted bytne uniform cost urovideo in Section 7 (i), Article VI. The cost system was never annrovel1. Section 15: 11Jo member .of industry shall cisnose of distresseo exceut uuon urior notice to the Code along sucl1 infornation a s the Code Authority 8 nd tl1e Administrator may urescribe. Genera l f all comnetitive items shall not be sold 8 S distressed merchandise urior to =ecemoer 26, general suring corrroeti tive items shall not be sold as distressed merchandise nrior to l:iother 1 s :Uay, an0 general comneti ti ve i terns shall not be sold as distressed merchandise nrior to July 4. Subject to review by the A dministrator, the Code Authority may p ermit 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 w a s good, but someho w 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>re aching 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 actual nrac.tice. 2. Cl ass 3 Trade Practices Section 8 forbafle the nrRctice. of shinning goods on consignment. As in many industries, narticularly those dealing 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>ortun ity to a nroducer to more widely distribute his uroducts and a broader and ouickened movement of his merchandise. Often in hearings of the Consumers' Advisory Board expressed the feeling that lower nrices and greater buying 01'F Jortuni 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, u articularly with style merchandise for such goods often become obsolecent over night or almost so.
PAGE 111
-96-It is not the functi on of a nroducer to g o o d s t o ti1e ultirrf te consumer . imsel f , he i!". ge<'red ur) fo1 it. Such g oods need selling 1-1nd c 1 1 t h'l t tl1' t v:rord imrylies. T h i s t h e mR.nufacturer cannot do. I f H distributor h ,'ls h i s mvn mone.y invested in merchand ise he Fln u rge to oehind i t to get it into his customer s hands as auic k l y 'Y)Ossib l e , whereFs where all t h e risk remains with the n roducer the retc:d l e r i s n o t so greatly concerned . Consign men t goods sellin.c:, n laces almost the entire of the r:ter c hndise unon the shoulde-rs, why tl1en the r e t ailer? JflA nufac turer s of hand :1c>. v e given i n t o t h i s modern ur::>..c tice nevf-r ho1J1Tev er, ,qnd ''-'e l c omed this cla u s e a nd ,..,hc=tt is more used it. Section ll provideo for cash of 3/10 e.c.m . anticina tion P . t the r a t e of per Fl. n num . Th i s n r ovis i on was working very well it rasa ret u r n t o former t e rms 1 A n d 2 , nage 11 6 h i s tory). ning it was accepted R t the end. a t the close. Industr y claimed (see F.xh i'oi t G , p p . 226 'Y)c?.rs. Fought bit t erl; r a t the begin-Section 1 3 forbad e t h e acce'Y)tance of returned g o ods after a period of r.ot mor e than seven ( 7 ) 0ays. Ano t:ner growin.<; evil tre ated on ')age 67 this h i story . AccentPd muc h mor e readily at the clos e than beginninr-. A nrovision u nd f oun d t o be gener Plly workhble . Tl1e sec on d ame ndment t o the cod e 'rhich unfortuna t e l y was not Pnnrov ed until a few d ays !'.1efore the Sunreme Court decision is tren.ted on 6 9 t h i s hist o r y . -. ComT)liRnce s indi c a tP c? n almost cle A n bill of health th res nect t o both Class A c?.n0 3 'lrP!de Prc'ctice Provis i o n s . It is to be honed that c? reader o f U1i s h i s t o r y will n o t conclude the industry were sai n t s for t h e y were f8r frm:-1 that. A Directora t e however, imbued 1'17i t h a beli e f i n the v a lue of trE•de urPctice in genera l and their own T rade Practice urovis i o n s in uR.rticular, corrective in thei r attitud e , wc?s l a r,q:el y resnonsible for the nretty clec:m chR rge sheets. All o f the clAuses containe0 had a vnlue, som e a s nointed out negative only , but even so, worth while. Other v aluable ryrov i s ions wou l d been added, i n f a c t were well on their way to an-ryro vc? l a t the e n d , and these wou l d have rna t eri8 .lly strengthened the industry' s nosition. H e dge Clause Jane s uch in thi s code. 9811
PAGE 112
,,,.. 1 .. 1 L • 0 rn. -97"r:ri tin:: be RT)"'ro< ci.1ed r.mcl1 more. thA n it of vi tP.l stctis tic' s af <"ln inr1ustry must be h istori c b ackground of :: n inclust:y must bP S1onsors should be r eCiuired to givP this i:i.1form rtion. In n.Clc1ition t::ey shoul d the followed Clnn the evils wish to correct, nuoting cha"l')ter e:nd verse in su,)ort of nasi tions t aken. For ex2mDle: Had the Adr.lin i stration oeen 9 . geogr a T)hic a l lis t of 1i'Pnufacture r s P nd their enDr' o x im E t e nroduction vri th a breakdow n of em1)loyment i n the f< ctories, mc:tn y of our oifficul ties . . ' in det erminging VI::tge n n d : 1 o:ur t'ions woulcl h a vP been elimine . t 8d a n d tl1e reDresent"'tion nuestion s ;ettlec.'l a l mos t out.of h P nd . Ter.ms c..nd Discounts cou l d . c.lso h<'v e been auick l y hc>el w e hfld rea l fE.t'cts in 'Jegi_nning . As it develo"l')ed Uiese cuestions in t h e mnin t tlefl reC!sonc:tbly ancl but one but admit tha t conclusions mer e bqsed more uuon a muc10ling throug h nrocess r ather t"!.1an a n orderly scientific one. Industry wants self governence, f1 sound ide<"l, but only in so f A r a s they T)renarec1 to accept fin obligation should it be given, for im)lied in thP . t c>re the uren<"rator;r stages and these should be tA.ken b efore c:tuthority i s given. S"l')ecific The bringing togethe r of l Abor 8nc1 m anufacture:rs on Code Authority Eo P r o's while. sounc1 in m:-inci1')le does not •vork out in nr8ctice. If ::.11 wer e norma l in their menta l nrocesses, or to T)Ut it ana ther vrfl.y, if they could forget T)Cl.S t oifferences, T)erhaus it would l1ave worked bette: . Unfortun<"ltely frP.me of minn fli d not e xist it was too much to exnect thElt it should, a t in A short sDace of time. The Mrmufacturers 1 gen e r a l attitude seems to be tha t l Abor h a.s some loathsome disease, wh ile l abor, c:tnd I 1m now thinking only of n rticula:r industry, acted .in but a conciliatory m anner, and as if they felt tl?-ey were clealing with 8 lot of s o c>n d sos. Gooa reason s for this possibly, much to said in extenuation for such I a m sure, but the less it does 'not make for deliberation and order. In P case of this 1.dnd, if Codes come back, I would strong l y urge that 1 , bor representation come frou1, not the one r ttting local, but one divorced from it. Such men could advif e 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 ertain in my own mind, tha t it would work, be fou nd in the end much simpler, and the beginning of a b ette r understanding, which would sDring good feeling be t wee n both. t ill feeling snrings from l R c k of knowledge <"l. nd understanding. If a mental c ondition obte1.ins, tha t mc:tkes for closed minds, we c:tre not going to gain kno wled(; e P .nd understanding , hence friction and 9811
PAGE 113
confusion confounded. of Code Authorities shou l d cont8in provision tho/t code Director s should be or elected by t h e Code and the rit;ht of hiring A.nd rests in Directors. iin this p . '-\rticular c ase no trouble in this resDect developed, but in many indus tries t h e Code Director 1 s ,ork ,as b ar 1 l y hampered b y the _ Code Authority' s insistence U Don co: .trolling emoloyment of the entire staff, and thus wP.. s develoDed w h:=Jt in effect was a.n industrial nolitical m achine, one resented b y Industry. A. Undesirable or Provisions nrovisions in t h e Trad e PrRctice division of this code are of cou rse unenforceable and yet their inclusion does have a moral effect, therefore should be incluoed. All know the imoossibili ty of imposing enforcemen t 'Jut no memners of indus try that I ever m et, a nd there ,. ere mC1ny, <'1greed t :1eir effect wr1s g ooo . . Of my O'vn k no'rl ed g e , this indus tr:' 1 s Cod e Directors h ave, through all sorts of chennel s , more or ,.;evious, kent close watch were successful in checking, to an degree, a straying from the a n d uath. r ecords but 4 comDlaints but I know of 111E'!l.Y t .,ere '"i thout formal comDlaint being m'3.de, and of these we.do not hPv e record. B . Conml ic:.nce As I hav e stated in "'Jrevim:ts chaD ters, due to careful watchfulness of the Code h.uthori t y comnliance s t a nd ards were high. Attached as I was to a nuinber o f i noustries , r:Jy opDortunities for corrro<'.rison were great; a na it c a n i)e s aid that if t his l)roblem had been ap;)roached else'."'b.ere a s here, much of the friction develoned would not hPve existed. See uages pO, 5ls 5 9 • to 61, 63, 96, to 98 this h i story and Fxhibits C, :?, l.. for detailed uBrticula.rs. C. Limitation on Production T -.is vras n ever a ttemDt eo either in t h e Code or otherwise. D. Possible Code consolidPtions The Luggage 2nd F ancy L e ather GooCl s , a nd Mens and "':romens 3el ts Industries should have been consolidn t e d '7ith L adies Handbags. All follow in general the sPme fa.ctory nractice, the same tyne of in dividl1...1.l s c omnos e the different grouos, a . nd distributive channels used <-re the same. urovi sions would n aturally need some adjus tr:1ent. From a g rouning, strength would come to the Code Authorit y 1'11Cl.chine itself, e nd what is e oue .lly imnortant, would enabl e the D r efentation of v unite d f r ont to distributive grouns, a nd thus more auickl y bring bette r D r actice. As set today, each g r ouu , a senar<'te entit. , a r e re]J'Itively small a nd therefore, in their relations with the nowerful well financed and entrenched buyers of their merchandise, Etr e e P s i l y browuea ten into the following of b a d D rr:tctice. 9811
PAGE 114
-99 -Wage a nd Hour Provisions In the light of the Virginia Art Case referrPd to on nages 58, 95 , 96 , this history and sho,• n in :Sxhibit A.l. One is temnted to say wage ryrovisions as set were sound as aprylying to e v e r y nert of the country. Th ere brought into that situation a f actor tha t c ould not be used in all cases, the injection of a aualified expert o n factory n r actice. Since such is not nossible, P nd since w e knol"17 "!'Te a l ways hav e with us loose f actory o rganization, I ar.1 inclined to believe a diffe rentia l for market s located away from accented centres of e particular industry, of a particular industry, should be included in a ne111 cocle . I think also tha t hour tolP r a nces in the neak neriods of the t w o selling is a need of all high style industries . Could this h ave been done , a nd a n average struck for the year by the number of hours allow able in off seasons, indus try ?.nd l abor would come ne ? . r e r a n annroach to neace. I k no w this is not the whole a ns1111er but it i s definitely leading t_. way. I conclude this history by exnressing m y own feeling a b out this industry. Utterly demornlized a t the beginning of its code life it united . Starting with nothing in the way of f acts a nd figures it l aid the foundation stones a nd built an of the value of such f acts . FReed ryith many serious nroblems it t a c kled them intelligently, a s will be seen by a c areful of the E xhibits contained herein. Industry mor ale non-existent, c ame into being, cnd I feel that the industry, in making these firs t stens, h & s a right to be -oroud of itself, a n d the Adm1nistration in the great heln it e xtended and gave has the right to be nroud. also. 9811
PAGE 115
-1009811 I ,. ,,
PAGE 116
Division Atministrators D . "'ihi tesi de S o l R o s e 1bla t t Geor_ge L . B erry Prentiss 1 . Coor. l e y ::. L . i:1cent :Je Juty AC::.Inini s trators Dr. =arl Hona d De.qn EG.\7ar
PAGE 117
Industrial Board Max Berl::ouitz Max Ueyer E . 1 . Jfric s J . H . Dc;vis Brag; Comer Houell Cheney ,fi.. G . Son Adninistr2.tion Liembers 0 . Vl. Pearson (See: Reports Exhibit N) Dr . PaLli Abelson 9811 -102From Au { ;u.s t 11, 1933 11, 1934 2 8 : 1934 A-.1, t l b ' 19 34 Octao 9 r 2 7 , 1934 16; 1935 Fe0rut..;.ry 1 , 1935 A pril 3 , 1934 May 1 0 , 1934 l'iay 1 , 1934 To Apr i l 1 _ , 1934 June 28, 1934 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
PAGE 118
-103E X H I B I J1 S 9811
PAGE 119
9811 -104-E X H I ::S I T Letter of TrPnsmitt2l Excernts f r o.J ori :e;l!!,ql coces suo:ni tted t• 'FlEJrts
PAGE 120
-.LU:J-EXIIIBIT PAB.T I co[, OF" :i!'AIH CO'.:P.c.;TITION for the LADI:..S E-Dl;-STRY Q}_ LETTi.R OF" TTAL Nations. l :g_ecovery Administration D . C. 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 m eeting of the Association. The As Gociated Hanclbag Industries of .America. , Inc. i s an o rganization consir.til1c; of manufacturers an6.jor v ii1olesale cJ.istributors of ladiGs : . a :r1c'.be . .=;s, pocketbooks a .r.cl :_Jurses, by volume of business a J Ot,.t seve ty-nine _tJCr ct.:nt of the inccu.s tr;y ; the Association i.s national i n scope anC.:! . i.1as a . m o r.1bers hip o f 100 concerns throu ;hout the United. States. This or:_;anizatioi 1 r1a.s incorporate d June 1<1, 1932 unc.er the lans of the State of New York; its objects are quoted herewith from the By-Lans: 9811 11T :1e object of this Associatio n shall be to s ecure ancl provide cooperation and '-Ulited effort in all matter relating to the )roc;ress, dovelop111Cnt, \-rt.lfare o r improvsmcnt of conc:i.i tions i11 the Hanc.bag Inclustry ancl . Industrie s correlate d and to ancl. tr.e and procress of the in all its b ranches; to foster the trac.le and COIIlDercial interests of its m embers; to secure frqedom from unjt st anC . unlanful exactions; to inculcate and maintein just anc!. eqt,_i table principlE;s; to eliminate unfair or improper practices; to esta ulic.-h and mc:lin t ain tmiforrni ty and equity in the C",1stoms ar..d c onr. 1ercial usa ".;;L s of the Industry; to acquire, preserve, c ollect and C:..i s s eminate business .. information, deem e d usef1:.l, ac!.van tageous or valuable to m embers r egarcUng the Ilc:-,.nc".bc . .::; L:.c'.ustry; to reform, correct and pre v ent any abuse and coriJElercial controver.si es, misunderstandings or grievances betneen : n embers o r bet v!een its members and the tro..d.e; to enforce its saic-:. objects anC:.. p urposes 81!10nt;; its members by such disciplinary anc!. other mGasurers as may be agreed upon b J them ancl as may be by its By-Lavv s ; anc" .. in general to do all matters tending to the t of the HanG. bag Indus try in all its commercial 11
PAGE 121
-106The Associate d Handbag of America, Inc. affirms that it is trul;>-r eprt-sentative of the industry, and G.oes not impose any inequitable:; restrictions U_:Jon m embe rship therein. Tlw iildus try being ess n ti ally a handicraft one, a.nd subJECt to tendencies, has been particularly affecte d by the cco11.omic d ep:cession of the J c:.st fuw years, and has bee n pec:uliarly subjectc c:. t o unfair anci uneconoE1ic trade practices, such as price cutting, C:umpinc; o f m•.:.rcl1and.ise , r ebates, etc. The Associatio n in presenting this Code f o r a.pproval, b elie v e s the. t it will restore tht. p1..1.rchasing power of che E:!11ployees of the indus try ancl bring comploY'Tic.n t up to the 1929 level, and restore the ind,J.sL;y-to"-:1. t s former hea l thy C0!1Cii tion. For of iU.entificatiolJ., the following stc? . t ".mcnts are num bered to correspond with the articlt s of the Code. Article 3 . The employment of minors undc1 tl:c:: age of 16 has n e v e r been prevalent in the handbag im ustry, but in orC.c r to make certain that this abuse not cre<.:.p in, the lln_ployt, t.nt of minors under the agE:: of 16 is -Jrohi bi ted. Article 4. Accor0.L-J.g to our bl:.st info:cr.1atio?1 , ap_LJroximatt-ly two-thirds of the industry is outsiG.c . of York, and. the minimum wage paid is $7.00 p e r YIE::<..k. establishment of a minimum wage of 30 .Pe r hour outside of Nevr York represents an1 increase of approximately and in order to com:98nsato for t h e in living costs in lJew Yor_-k City, a di fforen ti a l of 20% is pro vi d 8 d for. Article 5 . Th e nL:.;.nbl.;r of hours uo rY.:od nec k in tho indus try ranges from 44 t o 54, nnd in one:; or t"ro htstanccs highe r . Th e average numb e r of hours p e r VleL k is 48. The reductio n i n working hours to a min imum of 40 or an average r eduction of 2(}% , will provide for an increase in cmploymGnt sufficient to provid.c for the unemployed workers in the industry. Article 6 . In orde r to idDntify all pocketbooks and hru1dbag s as having b een manufac turcc3 . undc r tho c onct . i t ions approved by this code, it is provided_ t hat all handbags and pocketbooks shall boar an NRA label. Th e publicity givE:;n to all products \':i th an NRA lablc will t E:nd_ t o increase the salE.: of s uch products, nhic h in turn will make it possibl e for tho industryto pay the v Ja._;os as contc.mplatE:.d under this Code , and to talcc up the unemployed in tho indus try. ] 1
PAGE 122
-107Article 7 . In orcicr to mru.ck of C Oi.1plc tc. knov1l odge of costs end in many i11stanco s from no knov J lcd:;o of costs at all, the Association will furnish uniform cost sheets to e very manufactl,uc r in the industry, Th c st.; cost sheets \'!ill be aprJrovcd b y a coTilr.littcc of the Association and b o based on the cost systen non in usc by thG various rne.nufacturcrs in the industry. Articl c 11. For ye2.rs the industry maintained its cash discount on a basis of 2/10 / 50x and tht.;n chc:mg--d to E01I. During th-past four years, through unfair practice s and grcul. o n the IJart of thG nan ufacturers, cash discounts have rise n to a:r.d L1 som e CF'.SL.G as high as 1 0 % , and this in vier of possibly only 1o i n discount b y the mE!nufactu:rcr, on the of his sale s • .. This ,Jick difference b , t'.:cc.n the discount c ar;.1 c d b;'.f the manu facturer o...1G. the cliscount he is ccm:pc.llcd. to c;ivo , is un:ra:cranto d and uncalloc for, ancl it is a of 6rcat loss t o the industry and must bo correct e d . Unless cash discounts arc. absolutely ur . .i.form throughout the industry, thG tGDptatio n to use various discounts . '!ithin limits sot is a form of r obo.tc . 98 11
PAGE 123
-108 Article 12. This o.rti clc i designee'.. t o prev th.:. o s tabl i shmon t of sub stan.nd in ord e r to do n i tp this evil, thi s p=ohibits such Article 13. On e of the gl cat ost lossL s in the i:nC:ustry has rGsul t e d from ovor-proc_uction, r;ith the s acriic'.n g of gooc.i..s at the b ..... st price s obtainable in:.an inacti v e market, o.nc-:. t h e consocr:ont of stand a rds of vc'.luos. It is contcrnplntc.d th". t the. '=anclbr . g Codo Authority mo.inte. L1 <.'.. clo s e s-v. p crv1c i o :"1 t o provl nt n i th its l o ssGs t o the industry . Article 14. The Hc.ndbc:>g Inclustry is r<:uticulE;.rl y one. of st;yl c anerson should b e IJro t ectv d f o r sufficil.nt tj_mc s o tho.t the 1nay roap the. full be:nefi ts of his o.bility. Th G uastc..ful new provnl . cnt in tho industry which result in s C Vre l o s sc.s throueh rno.r k do'.711S t o manuft'.cturors .:md r c tai 1 crs, due to l.U1i' letrrc:m tc..d. n.nd. parasi tiC ,"nd i mi tF.t.ti n g o f diStinctive stylG s in tho ind.ustry, m u s t b e c liminc>..t o d . This practic e constitutes unfr'.ir c om1)ctitio n 2.ncl. it is the i nte rc.s t s of all t he. mo.nufp ctnrcrs. i n the inclus-r,ry. In o rdc..r to carry out the t:1.:' & o d e Au tho ri ty nill ostablish r.IJ.d rnc:>..i n tP.in a REGI3T::A 'liQ}T i3UR2AU • .Any person may registe r with the B-J .re:.u my orig inal d L s i t ' 1 , :m:.tvL'ial O l' pro c ess. Th e Bureau of Registration elsa b L a v aila b L , t o ['ly })..)rson, t radL. o r industry s c l l in:2; to l a dit...s ho.ndbc:>g industry, .ho \7ishes to register '.7i th the Bur eau any fr arne, pny origina l d esig n o n leathe r or material, or original process. p _ _ rti cl e 1 5 . Th e prrcticL; ruJ.cs unntical Hi th provision s apj_)rovod by thG Fcclc r a l Trade Cormnission for similar in The s ections o f the Bock a r e mandatory provisions of the Act, _q....11tl do not r equirG any
PAGE 124
-109 -It is the purpose of the Association by this Code to regulate and correct these abuses. The AssociCJ.tion is both roady and e..blc to assume the task of and the responsibility for, the rehabilitation of the handbag industry. VVi th tha t end in vic n , the Association state s 1 that the Code of Fair dompGti tion herc-1Ji th present ed, ':Jill n o t tt:!nd to prorr.ot e monopolies nor oppress or discriminat e a;ainst small business enterprises, and that it nill be fa.ir to comp etitors, employees and consumers, alike . !August 28, 1933 ks.i: AS 9811 Respectfully submitted, ASSOCIATED HANDBAG Il\IDUSTRIES OF .AMERICA, INC. (Signe d ) S. losesson, Executive S ecre t ary
PAGE 125
-...:. . .J..v A for the LA:UIS3 I i.L PSrRY ;_co e ffectue t e t :1e :.Jolicy o f T itle I of the Inc.u strial F..ecover r 1'_ct t > .i s Cor" 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". t8 '-.-ages, effecting necessary o f hours, o . ' labor,c;nc_ ellminating unfair tra.d e -)ractices (etc.); to ;:>_ o r lance between .J.. production c;mr to core incomE: o : within the inC..ust:cy to l evels , h i clt ,nak e }'OSfji b l e the payment of such wa.:;es ani the fuT:.L18r and. of capita l assets , to 8nd of :-a .t:. n g l1anc".b8_; incus try and_ enabling it to C::..o its pe.rt t oHar_ -Jli t.L12t bale-nee of inc:o.stries w:1ich is to restoration anc. maintem:.nce of tl: e h i_gl:est :pr a c ti cal d.eg:ree of welfare. I DEFilHTIO:?S T..1e ter:-:1 11hanc"_ba.;; i nO.us try " as useu. herein i s defi neG. to mean the manufo.cture a . nG../ or di strj :mtion of l a.ci.ies ' pocket books c:mC::.. t el"Jl "nersonil a s usec1 herein shall include nat-l ' ural persons, pertnershi_::s, asr:ociati.ons anC"c The tenn " emp loyer" as u secl l1erein sl.e:•ll ever 7 p e:::son engagec. in t l 1e ::_):roC:.uction o..n cL/or wholesal e cl.;.strib"Lnion of procl"'-lCts of l1a.nclba;i c.ustrJ as h.Jrein defin,::;c . . T'.r.:.e tern: "effective d ate" as used herein is : o me::Ll seconci. !!ono.<._;_y after this Code shall have been approved by Presici.e n t of Unitet I I As requireC:: . b y SE..ct 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.; rrovisions B.re c onc :itions of tl:.is Code: 9811 11(1) Tl--.at em:lozees s:1..a.ll :1nve to organize am. b e . r g2in collecti':e l :.r of own aLd sh.ll be restraint, or coercio!: ')f emi ll_o 'e.L r. of l el;:Jr, o r their eger.t s , in t h e of t1 v e s o r in se}.f -or5 '-'n i za .tion or in ot':.c; r conce r te0. 8 .ctivities for t :: e of collective 1)a r.;aining or oL1e r mutual a ic_ o r protection; ( 2) That n o no one seeking employment shall be require( e . s a conC:.i tion of e;il}'ll oymen t to joln any com::_1any union or to refra i a ,jo.;_nLlr ; , or.zanizing or assisting a labor organization of his O'i.fl1 c h oosing ; and
PAGE 126
-111-(3) That employers shall com p l y with the ma;:imurn of labor, minimum rates of -pa.7 , anci other concl.itions of employrnen t or p r escribed by t h e Presicl_en t. 11 III On c:.nd c:.fter the effective em:;?loyers shall not em:7loy an:r minor unO.e::: t:1e age of sixteen ( 1 6 ) IV On e . ncl a .fter the effective r_c.te, the minimum wage that shall be paic_ by a n y employer to any of their emyloyees, exce:pt learners C:.urin:; a tl1ree months a):prenticesiiip, sha.ll be at tl1e ra.te of: (l) 25): per hour when employed outs i d e of Greater New ;ork e.nc imrnediate vicinity , (2) 20 per hour v1hen employed within Gre ater New York anc"'-i!Thllecdate vicini t 1 . V On anc afte:: the effective de.te, employers shall not o perate on a sche(ule of hours of labor for tJ.1eir employees in excess of forty hours :per week, except office and staff, ship ping
PAGE 127
-113-To effectuete the provis ions of C ode, the of Gov e rnors as the governin.:; body of' t r e f_ssocie.terl. Hr.ndbag I nc1.ustries of .A.nerica . , Inc., is hereby euthoTizoc1 to apqoint such egent s or agencies: as it :fi.nds nc;cessa.:i:y, a n d t0 clothe tl1ese agents o r a genc ies rdtl-:. :-o' . 'rers necess2.r7 to carry out Lte ty vested in the Boa .rC.. Th.is a gencr or agencies to have p leaary powe r s sole d iscretion, anu t o be assisteQ b y a n Advis0ry Council, c onsi sting of chose n re:r:;resent"'.tives of every oi'?i.i.Ch o f i nC.us try, will act unct.er tl1.e sole autl1ori ty of tLi s agent. (b) T::e Ao.visory Coui.1Cil iG hereb:v designated as a p l a n ning , fair p r"l.ctice and c ontrolling egenc[ for th8 i ndus t r y . '.['hi s age n c y may fro: n t Lllo to time :;?resent to Ac'..n:inj_ s t rator of tl1 e inr'l.us try r eco;n.11end.ations be.sed U1!0n conc.i tions i n t" _ e a s they may develop from time to time, v.-:1i ell Y. t 1:. b:; u d to effectuate t:-:.e ope r a t ion of tl1e o f tho Code a n c , _:olicy o f the 1"3.tional Industrial Recovery Act, i n p2.rticula r 2.lon; the fo.J_louin-:5 lines: (c) 3ec:>mmenC.ations for the o: n,_les by tl1e Aclministrator as to bv persons i1 the as to met h o d s an0. ccnL . _ i tions o f trr>cLing , tl1o n-:rri!L1E-:. :otnC. o f rrices whicn m a y be to avail" to :promote the s t abilization of the i nc,_ .stry , to pre.ient and elL indte unfai r and destructive com petitive prices anQ ]rcctices. (c.,_) for the setting ur of a S ervice Fureau for e n c ineerinf ; , crecii t or c:my other purp oses th3. t may aid the conc. i t ions o f this emerge11cy B nC:, the requireme nts of t his Code. ( e ) P.ec o m11enda t ions for the t b y t h e Ac1mini s trator of lice:1sinc: and reg i strs.tio n of :;:-.Jersons enga.t;ed in the handba. g inc1us t r y not me1,1bers of t:te PssociC'. t ion to be rna/Le effectiv e as s-peedily as c 2 . n conveni ently be t o end th'1.t the provisions o f this Coo.c ma r 1ecome immed:i.etelY oueracive . . ( f ) ?.ecomm"3n dJ.tio n s f o r r e;T1.lati n,; the of merc:18 .n(i se i n fallowing we.y, oecause Uta . t vri 11 secure t h e nro tection of the o wne r s t . e r e o f at same time t h e and stable conc:i tions i n t h e incus try. Distres s merc: 1anci i s e may be d i sj?ose6_ of in the following ma:n t e r anc. clurint; the follovvin0 periorl.s only ; f all c o m::>etit i Y e ite:ns ':l.ftor .. na.s , cenera l s::;ring com oetitiv:.; items afte:: e .nc'. :,.ener-.. 1 SUI!liner item s afte1. July l tt:1 . ..,.,,,.ary person is t o e1e C ouncil immec:i9.telJ a .fter dis.:_Jo s i n t : o : j obs o r u n der-pri ceC. merc::.::. nc i se t:-1e as above s t 8 teet. , giving t h e following 981 1 o f Ja.t e of :purc:12 . se QtJ.e.n t i t sold. :?..eo 1lar L.Yrice Price at which sold Reasons for selling
PAGE 128
-113-(g) Recommendations for dec:llin g with any inea.lA.litie s that \ 1mav otherwise arise that ma. Y endanger the stabili tv of the industrv 1and/ or product ion and emplovment. (h) Such recommendations, when approved by the administrator, shall have the same force and effect as any other 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 com plaint of any one of the members of the foregoing Committee. The said agency shall investigate the matter or matters complained of and report its findings and recommendations to the Administrator for a"9pro priate disposition. VIIICODE."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 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 authorized 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 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 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 considera tion the following factors: cost of labor, materials and over-head. 9811
PAGE 129
-114XI -It shall be considered an unfair method of comoetition to shin handbags at whoJe•.>CJl e , at ter:ns ot.her thC'11 3/1 0 e .o.m.; antic'ipation t o b e al1ow8d et the rate of (6) per cent per annum. . . . XII The f 1rrnishin g of l ea.:t h er, fra::n es, or other materiats to con t ract,cr.s. by e . 1 etailer or r e Gc;j_ L : r s, a store zation, a resident b Jyin.o.: of:'ic e or a rr;ail orcle:--house for the of having che3e ma-le int0 E . f i:-...isl"e c . prcd.uct for the use of the said ret[liler, chain store :re, ;:dent buying office or mail-orde r Louse, is ar. u:rdair trade practice. The contr::tctor is hereby clefj n ed. as a p erson emuloyin g labor in the m a n 'J.fa . cture of the pro due t;s vf inc"..n8t ry, who does not make a practice of 'Juying his ovm Qr to whorr: materials are consigned for the purpose of making them. into uroduct for the consignor. XIII -To effect the J u-rp _ oses 0f this Code in respect to maintc..inin.!S a reasonable be tw.ee n the production and consumption of l acl ies h<1nd.baps, the industry g oes dn record a s in fa::r() r of a control of ion, me tho d . of' the .. co;1t!o 1 o f and the effective date shal l be determined by the Board of Governors . XIV ... In orde r to ure>tect origina1itv of d : e .si.g' n , materiids or )rocesses, a Re gistratio. n B 1reau is he. r e .by est'abl'is h . e d.' . , •' . . Any orig inal.ar.ticle, . _de_ s . i gO:, or '-9r6cess may be regJ.s tered by anv per sen in the indus t.'ry or b : { any' p . e .rson who' sel1s his product to the inclustrv, and vvhen so regis wj th the Re g i stration Bu:re ?.u , it sha.ll b e 9ro_tec ted , a,sa ir: st copv i.r.g fc r a -period of three (3) months from the date of are orohibited from copvinp s,_cn registered ... . .e;n, o r process, or to a or imitation of such design, material or orocess for q. ,qf months from the date of registration thereof, XV TRADE PRACTICES (a) The ma.kine; _any s ecret ' -payme nts or the making of any allowance o f reprte s ' , Jomn1i s s :ons' or ' uriec:trned discounts' whether in the form of monev or to certain purchasers special or privileF;es hot extendeq to all chasers, under like t erms and cond.i tiuns, with the'intent and with the effect of ir.jurin,.:; a com?,etitor :1nd. whE?rE: the may be to substantially lessen com petition Or tend. to c-reat-e a . mrir10'JOlv or to unreasonably restrain trade, is an unfair m ethod of 9811
PAGE 130
-115-(b) The g 1v1n g , s elling , d elivering or shiJ Jine; to anvone, products of the handbag industrv either .directlv or indirectly, or by any other wavs or megns whatsoever, on an arrepr,ement or understanding 1-:nown as 11memorandum11, or 11consig nment11 or 11on ap"9roval11 for any l e n gth of time whatever, with the ri.<;ht or privilege to the customer or consignee of s elling or offering 3ame for sale, and with the furthe r Jrivilege to the said c ustomer or consig ne e of returning Rll or any part of merchandise s0 shipped or d elivered, or with the furthe r uri vi lege of excha n . ;ing ?11 or any pflrt of S;J.Ch m erchandise, is An unfoir method of comoetition. (c) T he indirect or direct giving or to be give n or offering to give money or .anything of valu.e to agents, emuloyees, or representatives of customers or C •.lstomers, or to agents, em9loyees or r ep r esentatives of competitors customers or cQstom ers, with or without the knowledg e of their emolovers or principals, as an inducem ent to influence their em:9loYers or principals to purchase or contract to p 1 .rrchase industry products from the maker of such gift or offer or to influence such em"9loyers or principals to refrain from dealing or contrRcting to deal with competitors, 'is an unfair method of competition. The paying for retRilers newspaper advertising , whethe r in the form of money or otherwise, constitutes a form of reb?te and is therefore unfair method of competition. (e) The of a r eturn of any merchflndise shipped t o a :9urchaser and the giving to the purchRser credit therefor, or the ex.-. changing of merchandise for the purchaser, the merchandise has been shipped in accordance wi t h all the specifications of the order and within the specified time or where the has ordered merchandise in excess of his need with the intent to return part, or where the merchandise has bee n 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 m eans whatsoever, or the interfering with or obstruct ing the performance of any such contractual dutie s orservice s by any s.1.ch means, with the purpose and effect of unduly hampering , injuring, or embarrassing competitors in their businesses, is an unffl .ir method of competition. (g) The defamation of competitors by falselv imputing to them dishonorable conduct, inability to p erform contracts, questionable credit standing , or by other false or false dispRrae;e ment of the grade or quality of their goods with the tendency and capacity to mislead or deceive purchasers or prospective purchasers, is an unfair method of competition. 9811
PAGE 131
-116 -(h) Tn e me-king of Rny false or statement by any oerson in his ac.ve tising o r the TYJaking of false or unfair comparisons w:. th the products of other m am.1.:facturers, is an unfair method of covnvetition. XVI The administrator is authori.zed to deputize the A-d visory Cou.ncjJ. nvned herein anG/:J"!: its :tep:-.,:;sentatives to do and perform such a .. as may be necessary to carry into effect the purpose and intent of t his XVIIThis t rade affirms thc:tt it imooses no ineauitable restrict:.vna o n 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 Cod e shall not be so interpreted or. administered as to eliminate or oppress small or to discriminate against them. Thi CoC.e and all the thereof are expressly made s.1bj ect + . o +:he ri:?,ht of the P res.L ,l er..c, in accordance with the provi sion of ('l_a.J.s e 1 0 (b) of the 'Nat. i ( Jr,_aJ. Industrial Recovery Act, from time t o time to c ance 1 O:"' mo::U:fy order, approval, license, rule, or regulati.1.m,, issued 1.1. 11der I nf said. Act, and specifically to the right of the P:::-esident to canc8J, or modify his app!'oval of this Cod e or any conditions iii1pO s e d by him upon his thereof. of the provisions o f this Code as are not required to be include d thereirl by the National .Cndustrial Act, may with the a-pproval of the President, be m odified CT eJ.imtnated as changes in circumstances eX9erience may 1ndicc:Jt:e. It is con.te!J1:9lated that from time to t supplementary p.rovi s lona to c;ii s Co;le or additional codes will be submi for the approval o.f the t o p revent unfair competitive practices and to ef,fectuate the other purposes and policies of. Titl e I of the National Industrial Recovery Act consistent with the pro risions hereof. XVI I I -If
PAGE 132
-117-EXHIBIT A P AP.T 3 AS REVISED AUGUST 18, 1903 ANTI GNLY CONTAINING CHANGED PORTION S *** .ARTICLE I DKB'INITIONS *** .ARTICLE II -STATUTORY LABOR PROVISIGNS *:I'* .ARTICLE I I I -CHILD LABOR *** ARTICLE IV Gn and after the effective date t h e 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 oye d out side of Greater New York and immediate vicinity. (2) 35. per hour when employ e d 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 a bove 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: 9loyees. 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 Cod e Authority. This Handbag Code Authority. shall. be selected by the Board of Governors of the Associate d Handbag Industries of America, a nd shall be truly representative of the industry. 9811
PAGE 133
-118-(b) The Handbag Cod e Authority is hereby designated as a planning, fair :nactice and controllint: age11cy the industry. This agency may from -tirr:e to time 11resent to the ac"'.r.1inistrator of the industry recomrnenda tions based u -,oj1-concli tions in tl1e indus try, as they may d evelop from time to which v!ill tenc1 to effectuate the operation of the provisions o f t:1e Cod e 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:9ort s from uorsons engaged in the handbag industry of st& tistical in'0.cme.U an '-'.r..d the keeping of uniform accounts as may b e required to secure the of the Code and promote the proper bala.ncinc; of p:::'dX'.ction , distribution and consumption and the stabliiza tion of the inc .ustrJ am1 employment. (ct) Recommendations for the up of a service bureau for engineering, accounting , crecli t or a .ny other that may aid in the conditions of this emerGency 2nd the requirements of this Code. (e) Recommendations for the ma.king of rules by the administrator as to practices by persons engaged. in the handbag ind11Stry as to methods and oondi t.ions of trading , the and reporting of prices which may be appropria to to avoid di scrimirn'Cion, to promote the stabilization of the industry, to prevent eliminate Ul1fair and destructive prices and practices. (f) for re6ulating 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 tress merchandise may be disposed of in the. following manner, a ncl durin[; the follovving periods only: general fall com) etitive items after Christmas, sprjng competitive i'tems afte r May lSth, and general sunille r corrrpeti ti v . e i terns after July 4th. Ev ery )erson is require d to not.ii'y the Handbag Code Authority iwnediatGly after disposing of distress jobs or underprices merchandise du1inb t ::e as a'bovc s te. ted, giving the follow in,.:; name of dat
PAGE 134
-119-T h e expense of maintaining the h a n d b a g C o d e A u thority shall be borne y the Associa t e d H a n d b ag I ndu s tries of America , Inc., t h e to t his ode, and all other enployers in the i ndustry i n suc h :proportions an d ount s an d in such m am:e r a s : :1ay be clet e r m ined by t h e Handba.t; Code A uthority. ARTICLE VIII COTIE REPORTS MT] FEES *** ARTICLE IX COST RECORDS *** .ARTICLE X SELLIU G BELCJW COST *** .ARTICLE XI rERr S *** ARTICLE XII *** ARTICLE XIII CON TROL OF P ROTIUCTIGN *** ARTICLE XIV REGISTP.ATIGN BUREAU ARTICLE XV -TRADE PRACTICES *** ARTICLE X V I -ADMINISTRATIGN *** ARTICLE XVII STATUTCRY P ROVISICN S *** ARTICLE XVIII APPLICATION OF COTIE *** ARTICLE XIX VIOLATION S *** 811
PAGE 135
-12().... l!;XHI:BI11 .A PART 4 PROPOSE:J CODE OF F.A.I.R COi :PET I ::i:I OlJ t-LA::.f_,B_\G I:i.illUSTRI ArtTIC:sE I Pur:ooses DrQ,ft of november 6, 1933 To effectu;>.te the policies of Title I of the lTc.ti onnl Industrial Recove r y Act, t i'lc i'ollo_:,i::.g _ ro-:isi_C J i l S c..re sub:1ittec1 c:.s a Code of Fair Coml')eti tion for tl1e LRC:.ies 1 EcnJ1o.:; I::duG try , 8.nd u pon approva l by the President sho.ll be the st2.":dc.TG.. o:: f:1ir com::_.Jeti tion for this industry and shall be U})0:1 ever:r r:JGTI"t 3 r the r eof. 1. lndies 1 A J .TI0LE II Definitions T h e tern 11 Industrv1 1 t:'3 u sed includes the manufr.cture of J t'Joolcs <'.i,_l_ o 2. The terr.1 1Ter;p)l oyee11 as use d d.nclud.es DnY person engaged in any phn.s e of the i n mw C[)n nc:lty, com penso..tion for his services, irres:pecti ve of the n-:1ture or meth od. of of such 3. Tte tern 11ern}_ oyer11 use(:;. herei : 1 includes c:.n:rone for w hose benefit or business such is eng:-:::e d .• 4 . The terr.1 11:-1e'1be r of the includes D .nyone ent;r.ged the industr y , either 0.s o.n e :r::-loyer or ou his 0":7n behr.lf. 5. The t e r M 11President11, 11Act11, nnd 11Adr.1inistrr.tor11 r.ts used. herein sh2.ll res)ectively the P r:.s i.f.ent o-:: Jnited Stntes, the rJc:.tio"la l Inrlustrin l RecoverJr _L;.ct, c .n-1 t:1e .Adr,iinistr.•tor of Title I of sn. i d Act. 9811
PAGE 136
-121ARTICLE III Hours 1 . Exce : J t a s h ereinaft e: t pl'Ovided, n o s h ull be )err.1i tted to ,_-rork in excess of fo1ty ( 4 0 ) hours in n n y one n eel::, nor i n e xcess of eight (8) hours in any t:enty-fou_ ( 24 ) h our Je riod . 2 . J O person in s h irning, clerica l or o:Lfice u n l ess he is in o . mano.ge r ic.l e xecutive c aJo.ci 0 neriod. 3. The provisions of thi s Article shall 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 nork shall n o t b.:;:;in w 1 d the hour after which nork shall not continue. In the discretio n o:L the Code Authority such o penin.:; r:'lci closing h o urs nee d . n o t b e uniforn t hroughout the country but may be vuried to meet v or-Jine; needs C'i1d conditions. 5. ITo manufacturinG shall tf'. l::e }JlP .ce o n <:>.ny Sm.turdny or nny Sunday. 6. No member of the ind.ustry shc .ll ent_;o .. '; c any er.nloyee for c:my time which when totnleJ. ni th thn.t o.lrendy }Jerformecl with other or members of.. tho indust!"'J exceeds t h e r.mximw:1 lJermi ttcd h erein • .Ar'1TICL:E IV T1ages 1. Excep t r;. s herei:1c..fter Jrovicled no e o ' Jloyee be ;xid a t less thon the r<:•.te of cents ( 30f,) per hour ' 7hen ni thin Gre o .ter lTen York .:-'nd the im:1edif'. t e vicinity the r e o f , nor less than tuenty-fi ve cents ( 25) ]Jer hour nhen er.n l o :red outside G r ecL ter Nen Yorl:: D .nd. t h e immediate vicinity t hereof. 2 . Persons ler.rninG a n occupation s ho.ll be :.Jo.id. 110 t less thc. n eic;hty per cent ( BO% ) of the minL mm r:n ... ; e '.7hich lJrevrils in such occu..:. pat ion, and. the number o f such \:'Orl:er s s hall n o t e x ceed. five per cent (5 % ) o!' the number of employees of ;:,_ny one emoloye r < .nd no :person sho . .ll be enrolo:-{ed n.s n lec..rner. for a oeriocl in of' three (3) months ir-. respective of nhether they n.re . ..red. by one or more enployers. 3 . This Article establishes C:'. mininum ro.te o f :;J<:Y 1-hich sho.ll ap:yly of nhether [1n enployee is compensr.ted. [1, niece rc.te, ti:Je rc:,te or other bc.sis. 4 . 'rhe v;rag e rate s for occupntions othe r tha n t h o s e rece1v1nt; the m1n1mwn nc..g;e herei n prescrioed. sh0 .ll n.t least r:1 aintc i n the difference in earning for those .. occupo..t ions for r:. fulltine ryeel { e : d s on 9811
PAGE 137
-122 -October 1, 1933 provided , honever, th< t these r() . tes sho.ll be subject to r e consider<:'tion o.djustnent by th9 Cocie .Authority o .nd by the Admin istl'['tor. 5, Subtiect to revie':".r tl'.e Cod e Authority n.nd oy the Adminis trator=' ':'ye:: shall r eJ.uce " Tee : l y coin ::enso..ti for ment noTI in cxcoss of the min7'1'Ju.m c->rtablishe d herein, :rwtnithstond ing t hJ. t hours \!O:rked in sach may hereb y be reduced. A..:.tTICI,E V G ei.1erc : 1 Lc:-b:o r Provisions 1. .:.w )erson under sixteel 1 (16) yeo.rs of o .ge sho.11 be emloyed in the industr y . 2 . Erm;:>loyees shall hDve the -;;o org.:1nize r-11d bc:.rggin collective l y , thront;h to. ti ve s o f their 01111 ciwo sinr; o.ncl shall be free the i n t erf3:e:1ce 7 s t rn.L1 t o:-coe1c i on o:f' eopl 03; ers of lc.bor, or their D.('G11'cs, i n the u.esignu.:.ic11 of S1.l.Ch :te:ores8nk .tives or in self-or g2niz.:.ti011 or other r'Cti v i t : . e s for the of collective b n rs.-:l.ining o r othe r mu t"J.nl n i d o r ti on. 3. and no or. e S3elrinc em:_1loymen t shn.ll be required o.s a condition o f e:rT 0 loy,Je:r..t to j o i n n.ny union or to refrain from joining , organizin go; or assistin;:; r-organizatiOi1 of his orm choosing . 4. Employers shall c orrn l y v.ri t h the maximum hours of l abor, minhru.m rates o f )80' , C:.l1 d other condition s o f em)loynent 8.1J.• J rovec1 or prescribed b y the President. 5. No e:.1:9l oyer shall r eel "ssify em)loyees or duties or occupations l'Jerfcrme d for of d.e:Eer..tinc the Jrovisions of the Act or of the Cod e . 6 . Every em)loyer sh2.ll . ) r ovid e for the r'nd hen l th of his St. 2no.o.rcls for ['YlO . health s h nll be subr:li tted by the Code Autho:c i ty to the } .dministrn .tor Pi tl-:il1 siz ( 6 ) J.!'lO>lths nfter the effective date of this Code. 7. No j_Jro rinio n in t h i s Cod.e shall s uoersede nn z r lcm r.ri thin any State whtch more striL G e n t on errrJloyer s r . s to a g e of em:9loy3es, nar;es, hour s o-+: r:ro r k , or ['S to soi'ety , health, or sani tf:l.ry rogulatio?'ls,, o r or fire : )rotection, or t:;enero..l nor king conditions, th
PAGE 138
-12310. No provision of this Code shDll modify estD.hlished 1)ractices or privileges as to vacation period.!:, le.:wes of absences, or tenr,;orary absences fron ITOrk heretofore grCJ.:ated. to office 11. No r1eL1ber of the industr:r shall give out \70rk to be performed in any home or dTiellinc place. 12. -9crson 11ho sho.ll D . t nny time mD.nufacture any c..rticle or articles subject to the :;)revisions o f this Code sh<:ll be bound by e.ll the provisions of this Cocle rs to <'.11 em:')loyees e!1ga . r;ed , i n r:hole or in part, in such mc:muf<'. c ture. In cc::.se en:loyee shall be engaged partly in such manufacture and partly in the of eoods of another character, this Code shall G.)_)ly to such portion of s uch time PS is f:I-P1!lied to the manuf..cture of :--Lrticles su1Jject to the of this Code. 13. no member of the indus shall Give out r:ork on g contract basis unless such nork is given out :i th c>. • :ri ac;reene;,1 t that the contractor and. n.ll other l)<'rti e s to such contrn.ct sh.r;.J.l cornly nith r .ll the pertinent of this Cod.e. Tl e Code Authority shall dr:-, . lf U p D. U:'liform c?.(jreenent llhiCll shnJ.J. be USeCL nhereever r . ::.d Whenever V!Orl: is g iven out on ['. contrnct br-sis. A:.'1TICLE VI Ad.ni ni s t r.::-. t ion 1. A Code Authority is constituted to coonerc.te th the Ad.r:1inistr ntor in the ad:1inistr0 .tion o f t:1is co.:;.e. 2. The Code Authority sho.ll co:1sist of ected in the m anner hereine.ft.er s e t forth: nenbers to be sel-----(a) ::embers shell be e.: ted by the Board. of Gover-nors for the Associated Hc.ndbe .c; of America , Inc. (b) ___ members shall -oe by the I.:idwes tern Hnndb ae; Association. (c) ___ neTJbers shoJl 'be 'by the Priced Handbag (d) One (1) menber shnll oe t:';;...,-oointed b y the Aclni:'listr.:--t or on the nomination of the Labor Advisory of the !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 :Jo D .:cd of the Hc:...tioi1al Recovery Admini s trc.tion. (f) One meuber sh.? .ll be ru 10inted .. the Ad..T'linistro.tor to repre sent the Ad1:1inistr0 .tor. 9811
PAGE 139
-1243 . E r c h t ncle or industrinl r . :socin .tion directly or indirectly pc?rticipC". tin"; L1 the sel oction o r r .ctivi ties of the Code Authori tJ s h 11 ( 1) h!IDOSe no inequi tu"Jl e r e:-t i 011s on r..1er.1 b e j o .nG. ( 2 ) su"uni t to t:1 e AU!.'i'1i n ntor ,;nw s cf its 2 .rticJ.es of associ<:'t i r m , :7:1en togc t n0 r ' 7 ... t h s .L.:h othr.;r _;_n-.:r j.:"'lr.t t s )co JaenJershi ) , orgt.'.Y'.i nnd <'Ct . i v.L tic s n s the AC:.ninistrt"to r deem to o.t e the o ... t:1e .Act . 4 . In order th<:'t the C o o .e A u thori t::-<:' t <:'11 tir:Jes be t:cu.ly ".,' o:L' t l e inrlust17 in other res :Jccts c o::11Jl z r th the J r o vi3ion'> of t:1e Act, l'1Cl3' such heo..rings' a s ' ' he no.y d e e n ,:1 U . Tl D . y re--:_ui:.:e 2.! 1 mocl_ificntio:n in I r the methou o l s electio n of the Cole 5 . Noth ing co:lt<.:'..inec1 ii1 Co,:l:.e shell constitute the of t l e C orle )crtne:. s I'c:. rn" -)n-Jose . nor i".l1f neiJber of the r i t y ue i ... to nn.:ro,1e f o r c:-.ny [I.Ct or ru:.y ether r.w 1oer, o::..' ficer agfnt OJ? c :.1 lo:r e e of tho Cocl.e Author-i : i o r shall :-.nJ rilenbe r o f tht-Cod e A uJuhori be liable to r'l1yone for r . rry a c t io:-;. or or:1iss io:1 t o t :"e Code, e:::ce p t fo11 his t:ill ful o r 6 . The C ode Authori t : r s h ... lJ. hrv e the follouing and duties, to fu.o e x t ent perr1 i tted by the Act , r.:1 •.l sucject to the ric;ht of the :cevie':'.', to cLisr-.)'1l'0 7 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 regulations f'Jl1 its i)roccclure r: a d for t h e :-.. duinistrr tio n r11d enforcenent • of t his Cod e , onc 1 to sub:.1i t the 8['11C t o t : . e Ad:.1ini s tra tor for his ap-:?rov<:'. l to.s;c tj_1cr 1 i t h true CO)ies o :"' , .... r.i len0 J:J'3n .ts or cddi tions TI}len m ade ther eto, nL1ute s or neetin_:;:; l1:3lC_, c1( L such other informo.tio':l 2.3 t o its " c .tivi ties ['S the nay deer.: necessary to effectua t e _.mr _ ) O ses o f t :1e _,:,ct o (b) To obtain t}Irou[; h a confiden tinl fj,"O!'J the r1ember s o f the indus b y b:-se\ l O il nmi 'Jds of t•o, or :four u eeY.:s , or multi _ Jles ther eof, fo:t use o f t h e Co:le ... i1:tt :10ri t 7 2.1:.d the Acluinistrntor in the n11Cl. e nforcene :t o::' Code , c .no. the inforrnc..tio11 of the P11esic'!.ent, E.l.nd t o t;ive t o :1eJ 10er' of the :indust;.y in improvin0 nethoC.s, n nci othenrise . (c) T o r eceive co; r"'l.,Llt s o f violatio:c:.s of thir; Code, :.10J:e investjR;ation s t:1er eof, •Jj,1ovicle thereon c . c .jus t such comp l a i nts, "'.;1C'. ,Jr i :lc; to the r-tte;ltio:'l of the pr0per <.'..1.'..thori t ies for pro s e c ution recon' ,enclo.tions c:.l:.ci i l:.for• . v tion rel(1 .ti-re to unndjusted violal ations. ( d ) T o use suc h trade ancl . other 8encies as it deems pl'Oucr for the c r.r:r:ing O'tl t o f its r .ctivi ties provided for h e r e i n nr.d to pa}r such trade ...,s...,oci , ..... ti')llS the cost thereof, 9811
PAGE 140
-125-provided that nothing herein shnll relieve the Code Authority of its duties or reSl JOnsibili ties this Code and tho.t such trr .de. asso ciation 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 the ad.ministr2.tio:;.1 of this Code 1 i th such other codes, if o_ny, as mc-.y be .relc. ted to this indus try, or o.ny sub divisions t:1ereof, and to delegc.te to any other n.drlinistr[1.tive auth ority, with the of the Adninistrrtor, such : oowers c-. s , ,ill joint "..:Cld r .ction u:oon matters of co:-, 1ncn interest. (f) To secure o . n equitable and paynent of the expenses of the Code Authority D . Jld its o.ctivi ties fror.1 those me11bers of the ind:LlS tr3 r acce')ti n :; the benefits of the l'.cti vi ties of the Code Authority or other1ri se asse: 1 tine to this Coci.e. ( g ) To provide for an Cod e insic;nin for the exclusive use of the r:1embers of the industry and to establish o.:s:roropriate T.Jach inery for the issuance of such insiGnia. All o.rticle s subject to the provisions of this Code shall be<' r s uch an insig i.li a and eo..ch member of the industry shall be entitled to the use of such insignia provided tha t they agree to and com1)ly with the provi sio 1s of this Code. The Code Authority shn.ll h ave the sole to distirbute P..llcl sell such l"!RA Code insignia in t his industry . (h) To esto.bl ish or desig n 2 .te o . n a gency on e.ncl fo.ir pro.ctice r:hich shall cooperate nith the Code Authority in developing fair trade practices rmd industrial :?19llning, including the regulnri zation and establlization of emy loYTient for the industry. ( i) To initiate, consider, a:1'd make r e comraendc.tions for the modification or amendment o f this Code. ( j) To create as o.n c-. genc;:r of the Code Authority a JOIIJT I NDUSTRIAL RELA'l1IOli S BOARD, consistinc of n.n equal number of re} )resen 'tatives of en? Jloyers nnd errmloyees, [l.nd an chairr.w.n elected by the meL11bers of the Board, to inve stie:;at e e .ll r.1atters of the Code relnting to h ours, wc.ges, and _:;enera l l['.bor )revisions, and to report finding s c.nd recon.1endati ons t o the Code Authori The desig nated em?Jloyee shall b . e truly re: • _ )resentntive of the e r.nloyees in this industry and shall be selecte d by such en} Jloyees. (k) To recommend p rovisions for a lmifo rm cost s ystem for e ach divisio n of the industry r.hich u pon by the Adoinistrator a!ld after such notice of her.ring as he shall prescribe shall be cone a part of this Code. Any menber of the industry shell have the privileg e of continuing any cost system, or of instituting cost system suit E'.ble ond ado:Pted to his po.rticula r needs, thD . t the selling price c.rrived at by the use of ailY such s ystem shall not be less tha n the cost of that article which rrould be arrived at by the use of the uniform cost system recomnended b y the Code Authority C1.nd ap)roved by the Administrator. .Any such s;ysten o..:rnroved b y the Adr:1inistrr'.tor shall involve"only such elements of cost a s may be reasonably necessary to assist in the administrAtion and enforcenent of this Code. 9811
PAGE 141
-l2G(l) To undertake, in c onj'Llctir.n 1.rith the Code Authorities of rela. ted i n d 'J.s tries, a n inves tic;< . t i o n of style piracy and. to recommen d t o the Adrainis trc . tor, ni thil'l a reaso nn.ole of time, a l J Jro m eci:.s for t h e reg ulation c n .c1 sontrol o f style v1hich r e co:mmen,t['.ti rns tll8 o f :-.; tr(l t o r and . after such notic e a n ( _ h co;.<.ncss f.'. S h e may p r eL>cri be, shall b ecou e effective pro vis ions o f thi s Code . . : (m) To P1ake reconmend.o.t i : m s to the Administr;'.tor regarding tpe establishment in this i ndutr:,. oF a syste n of uner:r ) loyment insur ance, ':7hich recommendations, the of the Adminis trc:.tor s h all becom e effective provisi u n s o f this C ode. 7 . In additio n to the r equired to be submitted to tre Code Authority as set forth i n t h i s Articl e , theJ:6 shall be furnished to government a g encies such sktistica l in::'o::.r.ation a s J\drJinistrator may deem for the :i.'eci t e l i n S ection 3(n) of the Natior.dl Inclustri.:1l R e c overy Act. O o J m a:_npeal from e.n y cS. ctio; , _ the Code A uthority affecting the rights o f a : w or ir:. t h e ind11.st r y ::1ay be taken to the Administra t o-ro ARTICLS VI! TraJ e R ules 1. For all o ur-r)oses' of t r. i s Code the acts described in this Article shall constitute unfair p r actices • .Any r:1er1ber\of the industry ViThO shall, directly or inclirectly, throuch any officer, ent;:Jloyee , agent or tat i ve, l m o r ring l y use , em2Jloy, or t to 'oe eml Jlqyed, and of such un f air p r actices shall be gui:tty o f a vio lc::.tion to the Code. 2 . N o memb e r of the indus s r .. all u s e c.dvertisii.1g , 17he ther printed, r adio: d i sJlay or of othe!' n n : b.J.re , or other re)resentr-.tion which is inEt.ccurate in ['ny material particul:•:r o r b any rray any commodity , includin:; its u se, tr['.dem ark, quality, quantity, origin, size, materi a l c .ontent or prep r r gtio:'., o r crecli t term s , values, policies, services , or t h e nature or r'orm of the conclucted. 3 . N o member of the in
PAGE 142
-12 7 -6 . No memb e r o f the i 11dustry s h2.ll use a.r l v ertisinG o r other r e l J r e sen t a tion v : hich r e f ers i n eccu r a i n any rna , ,f_;. r ticule.r to any corrrJ eti tors or t h e i r c o m m o d i t i e s , Jric e s , v:.::.l u e s , cre dit t e r m s , ) O lici e s or s e r vices. 7. N o memb e r of the industry s h a l l o r un j ustif i e d . or unwarr8 n t e d t h r en.t s of lega l _ Jroceed i n g s which t end to har a s s or h a v e the effect of m r assinc , tors o r inti m idating their c ustomers. 8 . N o memb e r o f the industry s h all s ecretly o f f e r to nBke a n y 'Jayment or allo...-:2.n c e of a r ef1.md , corrunission, cre dit, unearned .discount or excess 2llowf:tnce , in t hq for m o f m o :'ley or o ther "-;rise , for the of influ encin g _ a se.l e , n o r s hD.ll 2. m embe r s ecretly extend to a n y custorJ e r s ervice or )rivile[:;e not extende d to customers of t h e s ame cln.ss. 9 . N o memb e r of the industry s h i p com 'lo ditie s o n c onsig nmen t o r memora ndum . 10. N o memb e r of the industr y s r.a.ll give , t t o be given, o r o f f e r to g ive, a n y t hing o f v a l u e !Lor the : ; ur::) q . s c of i n f luencinf; or r e v.-ardin G the action of errriJloye e or e .gen t o f s..i1o ther i n r e l ntion to the business of the employ e r o f such or the princi: 'Ja 1 or such v.ri t hout the k no w l e dce o f suc h or 11. No m e m b e r of the i n dustry s h all a t tem) t to induce the b r e ach o f a n exist i ni; c ontract bet\7 e e n a co m } Jetitor and ills em . Jloyee or c ustomer or source of nor sh...all EJ.n y (!,emb e r of the industr-y inte rfere with or o bstruct the p erformance of such contr actual duties or s ervices. 12. The max imum cre c U t t e rms of s ale for t his inc.ust ry sh.11 be 3/10 E.O. M.; anticipatio n to b e allm-;red a t the r a t e r'lf six per c ent ( 6 i s ) :pe r annum. 13. N o memb e r of the indu stry shall pay directly or indirectly any part o f the advertising exr;enses of a n j r pros: ective :9urchas e r or their agents. 14. No memb e r of the industry s h2 .ll acce : J t the r e t nrn uf n.n y m erchandise s h i::_;) e d to a purchas er, nor allow credit therefore , nor exchange m erchandise v;hore t h e m erch andise h a s bee n s h L m e d in accordance V!i th s pecifications and within the s p ecifie d time shero the merchandise has been in t l w actual, or constrQctive or the for more than five days. ... 15. No memb e r of the industry shall s ell b e l cw his own individunl cost u s co m ]ute d b y the uniform cost s yste m provided in Article VI, S ection 6 ( k ) of t his Cod e , exceDt t h a t a memb e r o f the industry may mee t the coi119eti tion o f memb e r of t h e indu str.{ VThose cost, a s b y sai d unif o rm c ost s ystem, mn.;r b e lov1er a n d except that this } )revisio n shall not a:.-Y.Jl Y t o the sal e o f distressec . m erchandise • .;... 9811
PAGE 143
-12816. No member of the industry s.ha.ll disJose of distressed merchandise o.t Jrico s belov.r the cost of 11is lowest cost corn::_;etitor or, if such memb e r himself be the cost his ovm individual cost, unless such n0tify the Code Authority im mediately afte r dis-')OS'J.1 of such distresse d alonb vri t h such inforrnD . tio!'l as t h8 Code -9.:t1 d the tor rw. y Tlrescribe . General f all tivr; i t erns r-J.y :1ot b e s c -lJ .J.S dif,tre s secl ise cluring the De n .od. o: and -'---------------r-ollr_,e i ti ve i t cYJs n G t be s olC: ::J.s dis t l:essed during the of • t i odifi C::'.tion 1. This Code all the thereof a r e expressly made subject to the r.' .. ght of the i 1 2.ccorde.nce Hith the of subsection (b) of S ection 10 of t l D Nc:.tional L1dustri8.l Recovery Act, from time to time to ca11cel moc1ify uny order, license, rule, or :rec;ula tion issued. unde r Title I of sB.id Act and fico.lly, but v1i thout limi t &tion, to riE;ht o f the ?resident to cancel or his -9.::_J)rov2 1 of this Cod e or any conditions imJosed by him u non his approva l the reof. 2. This Cod'3, exce') t a s to ytovlslons required by the Act, may be modifi e d o n the br.sis of or in circumstances, such modifice .tion to be b a sed tion :to the Administrator and such notice and he:.ring a s he shall and to become effective on ap)roval by the ?resident. AnTICL3 IX Mono)olies, Etc. No of this Code sJ:L.qll be so alTJlie
PAGE 144
-129EXHIBIT A PART 5 AS AUGUST 18; 1933 AND ONLY CONTAINING 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 A MERICA, 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 include s the manufacture of handhags, and manuf-kind or nature. , 3 . *** 4. The term 11member of the industry" includes anyone engaged in the industry, either as an emuloyer or on his own behalf and either as manufacturer, manufacturing jobber or contractor. A RTICLE III Hours *** 9811
PAGE 145
-130 -ARTICLE IV Wages . 1 . Except as hereir-af ter u rovid.ec. n o employee shall be uaidat less than the rate of conts hour when employed within Grea er l w Y'Jr!r a: d i:l;e i mrr.e3.: ate viGi:::.. t v thereof, :nor l ess than thirty cen s ( 3t)( ) -rerhour v.-hen -.-mp-Loy e d out s1de Greater New York and the immediate vicinity thereof. 2 . I'e:rsal1s an occuoati on shall be naid not less than ner cent (8\)01.) c,f n.inimum c.ragr3 p tevic:J.s in occupation, and the nunbe:::-s' .... ch ::;l:.P,ll n(;t exceed fiftPen uer cet (15%) of the num'ber of ertll)lO /P.::Js of a;.w one c:n::;loyer u.nd no peJ'son b e emuloyed as a lee:tner for a i.n BY-C2SS u f (3) months itre.pnecti V e Of whether hey are er.mloyed by one or mer"' em::Jlo;yar s . . ' 3. *** 4 . *** 5 . The Cod e Authority shall be emnowered to establish such basic rat as they find. rlcce sc:;ary ::1nd unon tha-c-or oval of the Administrator and the F.rU. SllCh not:!.ce "a"'1d as he may nrescribe, shall become effective urovisions of this Code. AR'I:L CLE V General Labor Provisions 1. *** • • 2 . *** ,: 3 . **"' 4 . **"' 5 . *** 6 . *** 74 "'** 8 . *** 9 . *** 10. *** 11 . No m e mbe r of the industry s tall g ive out to be uerformed in any home or dwelling ulace. This shall not apoly to hand beadi hand c r o chetin5 o r hand embroiQo ry. 9811
PAGE 146
-13112. *** 13. *** ARTICLE VI Administration 1. A Code Aut hority is hereby constituted to co onerate 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 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
PAGE 147
1 3:: 1 2 . *** 1 3 . * * * 1 4 . *** 1 5 . *** 16. N o memb e r of the. ir.iustry s hall disnose. o f distresse d m erchandise ' . . unless such !!1ember notifv th8 Codo ... Hthori t y immediately a f t e r disnosal of . such distre•sed mercr J and5 . s e , a .on' " v;i.t.h . such as the.Cn d e Aut and the A<1n 1 : _ist!'::tt o r m:::ty 1HG->cri"'::>e. fall c onro;titive i t e m s shall not b..., sol d as G.i s i r e s s e d n r ; r c L an(i s e uri o:c to D e cemb e r 2 6 , g e neral spring c ompeJ v1. tive i terr1s shall UL' t b e so1d ClS disi r e s serl me.rchan d j se ' nrio r to M others t and summe r c o:!J"Deti t i v e i t erns shall not be sold as d i s t resse d merchandisP or to J 'uly 4 . ARTICL'E VIII M odificat ion *** A8.TICL'E IX *** ARTICL'E X Price Increases *** X I Date *** 9811
PAGE 148
-133-EXHIBIT A PAR T 6 AS :dEVISBD AUGUST 18, 1933 AlT:U 01JLY C E AlJGED PORTIOH S (Draft of 8, 1 933) *** CODE OF FAI:} roR THE LATIIES' B A H:UBAG IUDUSTRY ARTICLE I PUP.POSE AREI CL:c I I l. The tem 11 Industry" as usee herein incluo . e s the :-1anufacture of lacHes', nisses', and c hildren's hc:!llcroags, and :purses, r:w.n ufacturecl 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 than 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 2. Pendi'1g further investigation, the .Ad.r1inistrator n a y , exce:ptio:::1al ci:: cu.c"T'stDnces , and UlJOn such as h e raay prescribe, peri!.lit a P .euher o:::' thP to e!T:;loy at rates belou the minirmn: 1.10.{!;0 he reiD e c :'Le.bl i l')rOvid.ed. i:1 n0 case shall such lower r ates b e les. s than eit:;hty pe:c cent of such r:inimu..TTI nage, 3 . *** 4 . *** 9811
PAGE 149
-134-5 . Hereafter, the Administrator may, Hi th the of the President ancl after full study and investi . . gation, establish, as a part of this Code, such basic rates for the more sldlled classes of employees as may be necessary to further effectuate the pU!'J.JOses of the Act. ARTICLE V GE1""E?AL J::A30R 1. under sixtee n years of age shall be employed in the industry in any capacity and no : Jerso n under eighteen (J.B) ;>rears of age shall be err:Jloycd. at any r.1anufacturing operD.tion in the industry. VTi thL1 ( 30) after the effective date of this Coc.e, the Code Autr .. submit to the Administrator a list and description of such o per.c:...t ions. 2. t hroug h 13. *** AR'!:I CLE YI A:Di : n ; r STRATIOH l. A Code Authority is constituted to cooperate rri th the Administrator in t h e ad.uinistration of this code. 2. The Cod.e Authority shall co:.'l.sist of not more than eleven (11) meMbers to be s e lected in the iJonner hereinafter set forth: (a) Three (3) menb ers shc; ,ll be appointee" by the Associated Hru1dbag Industries of America, I nc.; (b) T hree (3) members shall be appointed by the National Association o f Ladies' Handbag (c) One (1) member shall be appointed by the Industrial Council of Leather Goods t.ianufacbuers, Inc.; (d) One (1) member shall b e appointed by the l.lidn.est Handbag and &1all Leather Association, Inc.; (e) One (1) member shall be a:opointed by the Ladies' Handbag 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 and shall serve without expense to the industry. 9811
PAGE 150
-135-3 . *** 4. *** 5. *** 6. of the InC..ustry shall be entitled to participate in and share the benefits of the activities of the Coay deem necessai"J to effectuate the purposes of the Act. (c) To obtain from wembers of tl1 e such and reports A.s are required. for the administration of the Code an
PAGE 151
-136AR1ICLE VII 1. manufactured subject to the of this Cocie beRr an U:::A label t o symbolize to purchasers of said merchandise the conc . i tions under rrhich it he.s bee n rJe.nufactured. 2 . Under the lJOTiers vested in the Adninistrator by Executive Order of Octooer JA, 1933, and under grant of t h e necessary authority by him, the Co:ie A utho:ci shall have the ve right in this ino.ustry to issue anl. sell said. labels to the members thereof. 3 . label shall bear a registration nlli 1ber especially as sibiled. to eE'. ci 1 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 distributor. 4. .A:..Ty and all members of t h e ind.ust17r may apply to the Code Authority fo:: a perr:i t to }JUrchase and use such 1i:::'..A label, nhich :perni t to use t h e Jaoel shall be tec1 to thmJ, but only if ancl so long as they r:-1i is Code. 5 . Subject to the ap;.Jroval of the Aclnini strator, the Code Authority s hall establish r11les and and machinery for the issuance and. sale of labels c .. nd. the inspection, examination and supe:cvision o:i.' the practices of nenbors o f the industry usinb such labels for the purposes of ascertaining the riGht of such members o f the industry to the continued use of sc.ic .. labels; of protecting purchasers in relying on said labels; and of insuring to each individual r:1enber of the industry the " t the symbolisn of s aid label ni1.1 be :-1aintained by virtue of comlJliance ni th the :provisionn o f this Code by all other members of the inc.ustry using sa .. icl label. 6 . Th o rJade for such labels b y the Code Authority shall. at all ti:1es 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. *** 981 1
PAGE 152
-137A.:"1T I CLE XI **• A.rJ:li CLE XI I DATE *** E:xt-liJ3IT A PA.:t T 7 AS ?..EVISE D AUGUST 18, 1933 AYD OlJLY Cill.NG2:::D PORTIOlJS (Draft of :Decenber 12, 1933) *** *** 1. *** CODE OF FAL?c COl.iPi:TITIOi:J :5'0J. TilE HAHDJ3AG ARTICLE I PU3POSE ARTICLE II DEFETITIONS A:rtTICLE III rtOURS 2. no person employed_ in clerical, or office uork, unless he is em:ployed in a managerial or executive capacity and earns not less than thirty-five dollars rreel : , shall be perillitted to ITor:.;: in excess of forty ( 40) hours 11er ;reek over any one ( 1) conth period. 3. The l)rovisions of this Article shall not ap::>lY to natchmen or outside s alesnen. 4 . *** 5. 9811
PAGE 153
-138ARTICG IV 1 . Except as no employee shall be paid at.less than the rate of thirty-five hour ?hen employed rri thin City of Ne , York the terri tory embrr:1.c0d v i . thin a r.:;,cli us of t hirty-five miles of Col umbu s Circle, nor at less t ... r:1te of thirty (30) per hour \7hen empl oyed in any other part o f Uni Stc.tes. 2 . Pending further the Administrator may, under exceptionol circumstances, a.nd U.}Jun m ... ch. conditions e.s he may permit a member of the to enplo y learners at rates below the minimum nage herein established, lno\ i ded i}1.at in no case shall such low er 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, ii i 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 . as a part of this code, such basic rate s for the mor e rlasse s of 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. l iTo member of the 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' broidering, and except that hand S3i1ing at hom" 1all pe... . i 1 L:_y 1, 1934, but shall not be per1.1i tted thereaS r . '11? C o ... ; 1LUtr .. i • ... v .. mll, in conjunction with such state governmer, s and s 'Ch oa:rt ... d:E! l"Pe FeC..er a l Government and such other a-scncies s the dmin j t t •att- • rr.a:.r esignatc, 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 effective and ap:?ropria te control of horr.e\ crk 11.s is herei permi tte :;, ou.l d the .Administrc::.tor find.it to the best inte:;.'3st of t -.e-: r ... y .}!' o .. est . of labor or other-wise necesnary to f 'fee .L;;e t pur s.s of the Act, he may fur the r restrict, or w h ... l y p .. Jhi t/ .1E: ."!'u.l:t e of in this in try. 12. and 13. *** .Ar:-.. ICLE I 9811
PAGE 154
*** *** *** *** *** *** -139 ARTICLE VII NRA LABEL ARTICLE VIII rRADE PRACTICE rtULES ARTICLE I X MODIFICATION ARTICLE X l tiONOPOLIES, ETC. ARTICLE XI PRICE INCREASES ARTIClE XII EFFECTIVE DATE EXH IBIT A : PlR:' 8 REVISED AUGUST 18, 19 33 AliD Ol\lLY COl1!TAINIH G CHANGED PORTIONS Dr aft of Dec. 21, 1933 *** *** Hl ARTICLE I PURPOSE ARTIGLE II DEFINITIONS
PAGE 155
*** *** *** *** *** Section 1 through 13. -140-ARTI CL. E I I I HOURS ARTICLE IV ARTICLE V GENERAL ART ICLE VI ADMI. L I STRf\::ri 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 mer-chandise shipped to a purchar<:Jr , nor al1on credit therefore, nor exchange merchandise \ 7here the merchandise has b een shipped in accordance -rri th spa ifications and within the specified time, nor where the merchandise has been in the possession cf the purc1aser for more than seven (7) days. 15. & 16. *** ARTICLE IX I J ODIFI CATION .. •:*** ARTICLE X M O NOPOLI::!JS, ETC. *** 9811
PAGE 156
*** "*** 9811 -141-ARTICLE XI PRICE I NCREASES ARTICLE XII EFFECTIVE DATE
PAGE 157
Classified List of Manufacturers " 3 p ",1' t s \ 9811
PAGE 158
9811 Retail -143-EXHI B I T 11]11 Par t 1 NEW Y ORK 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 CLASSIFICATION Hanufacture r • • • • . Manufacturing Jobber • • • • • • • • • • M ' • • J
PAGE 159
NAME A & A Bag NoveltyCo., Inc. Acme Handba g Cor.u . Adams, H. A. & C o., Inc. Amdur, Lan g e & Sobel, Inc. A'Tleri can H a n dbag Co. Amerloid Company Anchor Handbag Comuany Anish, A. Annette Handbag Co. -144NEW LIST ADD:rtESS 54 W. 21st St. 1 w 0 t h s t .. 3 6 699 St., Bronx 39 :ar oor.oE-Ctc 505 Cvurt St., Brooklyn 69 3 arj 12Gl '.iw e . y 3 8 { . 3?nd st. Aouel, Inc. 10 v l " St. Artistic Bag & Neckwear Co., Inc. 12G 9 14 B. St., Artistique Ba g Art Style No7elty Co. Associated 1S 5 22n u S Brooklyn Astorloid Co. Avon Leather Novelty C0. B&S Suecialty Co. Bagfair, Inc. Banita Leather NoveltyCo., Inc. Banner BroG., Inc. Banwer M f g e Co., Inc. Barclay Handbag Co. Barnet t Mfg . Co. B eaux Arts Ba g Co. Berman Inc. Bienen-Davis, Inc. Biltmore Bag Corp. Blatt, A. Bloom, Charles, Inc. Blum & Marcus, Inc. Bricl..anan & Co. Bryon & Band y , Inc. C&S Bag Comuany Carne gie, Hattie Shops Carole Bag s Corp. Century Handba g Co. Character Bags, Inc. Charles H a 1 dh a g , Inc. Coblenz & Comuany 21 W. 3i .st St. 187 St. 302 T:: f'th A -ree 142 W , 2.21d St. 13 6 1 21 ::; t s t • Ave. 6 W . St. 32 U n:i.0r . Sq'..lare 25 W . 31.st St., 3 3 W. 34th St. 3?-ncl st. 11 W. 30th St. 38 W. 8 t • lE W 3t. 3 8 W. 8t • 11 W. St. 873 Bro adway 24 W. 2 5th St. 42 1. 4Sth St. 10 4]. 3 3rd St. 315 Fift h Ave . 26 Place 22 W. 32nd St. 6 vV. : 3 2nd s t • 4 7 vV. 3t..:: t h s t • 22 W. 3 Bt'1 St. 27 W. 23 r i St. 54 W. St. Coh n & Rosenb e r ger, Inc. Bead Co., Inc. Consolidate d Co. Cro c lie t Novelty Mill s Customcraft Leather Good s Co.Inc. 40 " 17th St. 9811 Brooklyn . . CLASSI .. PRICE 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
PAGE 160
NE'J YO:?JC LIST al sheim, & Co. , Inc. eAlteris, M . eauville Bags Inc. Dei t sell Bros. e1-elman Bag Co. eLuxe Eanc'be r C o . emerer 3ro s . :ac.g l: f g . Corp . icl:stein Boord & Co. &:. Soi1 Leather Goods Co. ormar Be.-s Col'"lpany Co., Inc. !Ec:dlaus, E . H . iElk Ba.:; Comoany :2llas I\:nitting Uills, Inc. Hc-no.bag Empress ]andbag Co. Exc ellent Leather Goods Co. Feller Bros. Fine Arts .rTovel ty Bag Fishbei:P& Co., Inc. Fla.,"C, Charles 8: Son Franco-American Leather Goods Georg e Franlc & Comoan'r J Fra n k , E . H.-Rialto Co., Inc. Frer:ch Bag Sho n Fried & Scheinber g , Inc. J & A Friedber g , Inc. F ri e drna. n , Lobel; Inc. Galek, Hilel Gem Corr."9a:cy J & P GeorG e J. & Sons Golcber g , Gus Goldlom Goods Co. Gold Seal Importers , Inc. Inc. Gra.celine Handbag s , Inc. Halberstadt, Inc. Ha nes, Elizabeth, Inc. H e r man Bag Cor-.). Herman i ovel t y Co., Inc. Hilf Bag M f g . Co., Inc . Robe, Cie Hraba , 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 Bro a d l ! e Y 11 E . 2 6 t l1 S t . 4 . . . 32no. st. ll 30th St. 77 S pring St. 2581 Atlr-ntic Ave., 29 t:1 St. 36. Z . 10th S t . 675 Bro ad"\'ray 10 TI. 33rc. S t . 39 17. 32nd St. 450 Broome St. 303 Fifth Av enue 171 G-reen St. 23 E. 26th St. 2 3 ';' J.:.J. 48t h St. 45 20th PR ICE RI\.HGE B&C A BCD C & D C&D ABC B B&C D A B A&B A D A B '':lvn.BCD A A A B&C l3&C C&D A B A A A 971 Third. Ave., Bk l;vn. A < 38 \l. 32nd St. 781 Prospect Ave., 307 Fifth Avenu e 347 37th St. d . 102 Prince S" \J • 35 ':i . 32n d St. 1 5 24th St. 30 -"'. 33rd S t . 303 Fifth Av e . 20 't'T 33rd. St. " . 1 0 E . 33rd St. 2 1 67th St. 6 w . 32nd. st . :Bronx 104 S . 4th St., Bklyn. 333 Fifth Av enue 5.66 Seventh Ave. 29 E . 19th St. 39-18 5 1st St., Tioodside Long I sland B }3 B C&D. A B A :OCD l3CD B BCD B D A BCD D ABCD A CLASSIFI-CA'l1l Oi i M II II II II II 11 II II II !t If II If II 11 n J If If II It M It I I II II If H J M It J M I I J M M II II II II It rr It
PAGE 161
-146-NEW YORK LIST 1 0-17-35 N A ! vlE ADDRES S PRICE RANGE CLASSIFICATI< Ideal Leathe r Suspend e r Import Bag & E .eac. Cor p . Irving Handbag Co. Israel, Jack , I nc. Trim. Co. 15 E r. S t • 30 7 s L t h Ave . 14 E. 3 2 nd St .. B BCD A B & C June, D. Junvenile Co., Inc. K . G . B. L eather Goods Co. Kadin Bros. Kaplan. & Gord on Kasnowitz, Mac & Sons Kirk, Varso Klein, Louis Co. Kleinert R ub ber Co. Koppel, Jay Coru:9an y Koret, Inc. Kraus, Loe b Han d bag C o . Kregler Leathe r Good s Co. LaRue Ba g Compa ny Leon Ace .. I m port Co. Lesser Ba g , Inc. Lewis,. Nat, Purses, I nc. Librick , A. & Son s Lincoln Leather Goods C o . Lind, Marth a Lorraine Novelty M f g . Co., Inc. Lowy & M und Lujea n Evening Bags, Inc. Lustgarte n, B. M. s. Novelty Co. , Inc. Mack , B etty R. Made Right Bag Co., I nc. M a gid, A. I. Comp3.ny Mailot & Com p a ny Marino, c. Markay Bags, Inc. Markel, I nc. Maroq linerie d e Fra nc e Marve l Bag Com pany Mastercraft Bag s , I nc. Maxon co. Meise l Com pany Merit Leather G ood s C o . Metter, M . Meyer Leat he r G o od s C o . Miller, Pen n M odern Han dbag C o . Morgenstern & Brosseau 9811 9 2 E . l O t h St. 40 Wo 22 n d St. W e 3 1st st. 20 W e St. 3')7 L:l J 485 h 24 t;j . 30 tll s "S 33 E . S t . 5 C O :Oklyn 1431 L:vr tle 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. B k l y n B 130 W . :30th St. D 3 2 4 A 6 "! ,_ 3.:?nl S t • M3 3 1 6 3 5 . 2 203 . 1 30 165 3 8 F :.h Ave n u e Four::h Ave n u e W o .. r.tad.i s on A v e nue 'ff . 26th St. r:r. ':)8th St. BCD B A BCD A A 140-10 Fr a.nld i :n , Flu s hing c 11 0 w . 27 t h St. A 1 4 }j. ?-3rr BCD 1 2 :E. r:oth St. BCD 125 Le:;._i_ 'h;t.o n Ave. A B C 3 0 B . St. A 15 E . 32nd s + , . C & D 150 E . 23th St. A&B 2 9 w . :'Gt.:h A&"S 1 0 17. 3 3 rcl S t . C&D 1 2 3 2 nd S t . A&:B 3 8 w . 32:-ld St. B&C 1 4 E . st. B 2 4 w . 30vh st. . A 1 4 7 w . 2 5th St. A 2 7 w . 57th S t . D 38 w . 32:-ld St. A&B 38 w . 32 n d 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 II ,, ll II II II II II II II II II II II II II
PAGE 162
EW YORK LIST .AME ,,,. oskowitz, & Co., I?c• urra;yy, James C. Co. , Inc. adelhaft Comyany 'adlor Le ather Goods ayda Eag Comp any ew York .A:rt Bag Company ow York Bag Co. , Inc. 'i bur, William ovelty Handbag Comp any 1ur Bag Corporation 1 & R Leather Goods . 'arisian Handba g , Inc. 'aristyle Bags Company 'aul b() . comp any Belt Mfg . Co. >ierce Handb a g Company >ine Brothers 'Oneh, G. 'Opular Handbag Corp. 'owers & Lichtman 'rime Handba g Cc,mpany Handba g Comp any 'yramid Leather Goods Co. lainbow Goods Co. lath, Wm. C. Company leiman, J. Handbag Conrp any aitter & Ritter & Ritter Robbins & Weitz, Inc. Edgar, Inc, G oodg S. B. Comp any Harry Roth, Harry Roth, Max Rout, Rosentha l Comp any Rubin LeathQr Goods Cor p . Rubin, T. Ruby Bagz , Inc. Sachs Bro Salon Novelty Bags Inc. Saniton Co., Inc. & Weeks, Inc. Schwab & Rebell Handbag Co. , 9Sl.l .. 1 47-1 0-17-35 .ADDRESS PRICE RANGE CLASSIFICATION 1 22 5 Bro adway 250 E . 43rd St. 11 W. 3 0th . S-t . 1 qO W • 30 t4 S t . . J.l w • . 3 0th st. 4 .W. 32nd 22 W. 32nd .St. 2432 Bro adway 10 E. 33rd.St. 228 Grand St., Bklyn. 221 Powell St., B klyn 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 Penn a _ . Ave., :;Bklyn 3 0 3 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. 3 3rd. St. .38 w. s t • 303 Fifth Avenue 6 . 93 ]roadw:ay 225 Fifth Avenue 130 Madison Avenue 14 E. 3 3rd St. 491 Bro adway 22 W. w qnd St. 6 W . 32nd St. JO'? E. 19th St. 1 8 0 Madison Avenuo 79 Fifth Avenue 19 E. 2 2 nd 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
PAGE 163
NE\7 YORK LIST Seidman & Glickstein Service Handbag Com:?any Siegel, A . L. Co., I nc. Silver, tf. Sims, J . Sloane Bros. Spring croch0t Company Stair, David Stanley & Stanley , Inc. Stein-Drew Cor poration Steinman Co., Inc. Steinma.n, Louis I. Stone, Harry S., Inc. Style :Sag Company Sup erb L eather Goods Com_Jany T ailored Handba g Corr_Jan y Handbag Triangle Leathe r Goods Company D . S. Pillow Cor p o ration Unique Style Allige .tor Bag Co. Vanity Fair :Sag Co., Inc. Variety Leather Goods Cor p . Vienna :Sag Co., I n c • . Vogue Leather Goods Cor p . & Comp any Uarner anufacturing 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. 1 2 w. 32nd st. 20 '1. 22nd st. 149 St., Eklyn. 39 W. 32nd St . • 14 B • . 32nd St. . . 50 S pring St. 35 .w. 32nd st. 325 Fifth Avenue . 1 214 :SroadYray 20 Tj, 33rd St. 2g l O t h St. 6 "']. st. 2 4 TJ •. 25t h St. 2 2 0 Ave •. ' . 19 E . 48th. st . 307 Fifth Avenue 608 :Broa dway 11 E. 26th st. 147 i7, 26t h St. 1261 39 W . 32nd St. 34 ' . 7. 46th St. 114 i!. 30th St. 133 TJ. 25th St. 49 E. 8 t h St. 46 '7. 20th St • . 11 0 -: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
PAGE 164
-149E:iJfi BIT 11B11 P.ART 2 m.-T Cf TOVJ!: LIST PHICE RANGE R ctc?i1 l-p to $1.C'O .......................•..•.•.• A 95 ru1d $2. 9 5 •.........................• B $4. 9 5 ••....•..........•....•......•.••..•• c Over $4. 95 •...................•.....•..••• D i [c:> nu_f nc t-u.r c r •. .-........•.............•.••• , Uc::..1ufncturing Jobber •..................••. J 9811
PAGE 165
-150-0UT OF TOW T LIST CLASSJ Price FICA-ADDRESS T_Y'----S'--T...::..A_TE RANGE TI.Q_ --------Fall River, MRSS. B&C Aarenau & Wolf, Inc. Adolph Goods Aetna Allen Leather G''Od s Co. Leather ?roJucts Co. Arrow Leather Goods Co. 364 1 \'Jest 26th Stra e t Ill. A ------Union C ity, N.J. A -------A ller. town, Pa. A , . n Ave. a t Lo.:ust St. West J3end, Wis. BCD 325 s. " rket Street Chicaeo, Ill. A&B K . Atsu.les 51 3 B oston Street W . Lynn, Mass. C&D D. Balazs 2 51 Post St. San Frnncisco, C al. C&D D 1. G. Palfour Co. Beacon Leather Goods Co. Better Bag Co. Black g . Co. Attl atoro, Mass. Conn. N .Y. Pennsburg, Fa. A Alphonse BollAck, Inc . Smith & 3rd St. 19-2.1 ' 4th St. 783 .. ssion St. San Fr1ncisco, C al. A B&C .A&B Hugo BoseR Co. Braided Co. Max Brill1s Sons , Inc. B rynrnor e LeAther Co. The Buck3ye Co. Chas. Burst ein & = lC ;;_. _ . . Cameo Hand BPg, Inc. Angelos C assaris Century Leather Gds. Co. Nicholas Chakoutis Cl assy Leathe r Gds. Corp. The Coed HanQ Co. Conce y Hand-0c.1g Co. Cordova Shops, Inc. Cornell Mfg. Co. Crescen t Goods CryPtal -:o. Crystal Leac her Gds . Co. D avis-Alberts C o . Inc. The Dorothy Designs Andrew Dougenis Eagle Leather Goods Economy P roducts Cor p . Eisman Kaye Co. Elite Leather Goods Co. Enge r-Kress Co. 253 HArr i so n St. 20 Jelj n Street Chestnut Street Kirk 3 ld.:;. 2 l. -_,_ r!':cC S t:"' eet 6 235 e:r so n Ave. 49 V ;'' fl"H1 7-29 C;:-,:..lu} ::it . 2 1 3 Institute ilace 1 3 99 lest Ave. 21-?7 Gorr'l.0n Ave. 1 5 Sno S + , r ee t. 85 I, roorr1 ::: t . 3d) vv • Arwm s S t . 99 St. 507 T extile Tower 46 St. 173 Surnme1 512 S. F eoria St. 23 S. Fra n klin St. 42 S ummer St. Enterprise Accessories, Inc.38 Scho o l Street Equitable Co.Inc. 191 Redmond St. Fancy Leather Goods Co. 305 Grant Ave. Fancy Lea ther Goods Co. 36 H opkins Flace Fashion Bag & Leath.Nov. Co.31 E . Kinney St. 9811 ::m, O hio Springfield, O hio R.I. Pittsfield, Mass. Nevv Br1L"lswick, N.J. Coshocton, Ohio E.1ston, Fa. Bridgeport, W . Lynn, C hicAgo, W . L ynn, Iviidd J.etown , c :licago' Lon g IslAnd, 3ufalo, Frovi_QGnce, J e r s e y 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. Mass. -neD A BCC AB D ABC A D c BC A AB D BC A AB CD ABC A ABC A Boston, Mass. A C hicago, I 11. B Chic ago , I 11 . B Boston, Mass. AB West Bend, Wis. BCD Greenfield, 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
PAGE 166
Cla OUT OF TOWN LIST ssi J NAME ADDRESS CITY STATE . :fi Pr-ice ca :.. STA!JJE t ion ashion orst & co. . J. Fox & Co • . . B. Franklin ranklin Bag _c9. 234 S.Market St. 253 !-I. 12th St. N.E.Pratt & Greene 130 Essex Street 26 Wingate Street Cnicago, Philadelphia, Sts .. Baltimore, Boston, H a v ernill, 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 oldberg & Seltzer, Inc. oldsmi th Bros. Liberty Street Newburgh N.Y. 12 No. Cherry St. Poughkeepsie, N.Y. 315 Linden St. Allentown, Pa. J.M. Goldstein & Son 709 Mission St. S an Francisco, C pl. 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 G oods Co.Inc. l Brookside Ave. 3enj. Kash 407 E. Fico St. 3enj. Katz Washington St. Celler Bros. 311 tv'ountain Cewar Co. ----Leather Goods Co. 2418 W. 9 Street Mode Handbag Co. 226 S. Wells Leather Goods, Inc. St. Hand Bag Co: Inc. .. 15 Courtland St. ;.Jawson Studios 93 Mass. Ave. F abric Creations,Inc. ---& Kaplan, Inc. 35 Lrrnder St. Co. ll9S. Wells St. 3811 Boonton, N.J. C hicago, Ill. Boston, Mass. Boyertown, Fa. So.Norwalk, Conn. .So. Boston, Mass. Boston hlass. Garnerville, N.Y. Wil l i amsport, Pa. Flowery Branch,Ga. Water town, Mass. Nyack , N .Y. Fhiladel pnia, Fa. Fhiladelphia, Fa. Nocona, New Brunswick, Los Nyack, . Union City, Gloversville, Los Tex. N.J. Cal. N.Y. N.J. N.Y. Cal. Chicago, Ill. Perth Amboy, 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
PAGE 167
.-.152 -OUT OF TOWN LIST NAME ADDRESS CITY DLAS Price SIFISTATE Range CATION Anna B. Locke The Locktite Co. Luce Mfg. Co. James H. Lunn Co. Makewell Leather Goods Co. H. Margolin & Co. Mastercraft Goods Maurice H a ndbAg Co. The Meeker Co. Merrimack Valley Bag Co. Meyers Co. 34 Hurlbut St. 117 Blucker St. 618 Delaware St. 1771 Union St . . Albany, Bloversville, Kansas City, San Francisco, Pennsburg, 380 Street Fitchburg Center & Cutler Sts.W aukesha, 30 E .R a ndo 'lph St. Chicaso, ----Joplin, . Haverhill, Michel, . Maksik & Feldman, Inc . ...:.:..,..:. __ rorwalk, Clinton, Chicago, Midwest Ladies'Handba g Co. 402 So. Market St. Mirro Leather Goods Co. Molomut Hand Bags , Inc. Morgan Co. Morris, Mann & Reilly, InG. Mountain Handcrafts Co.Inc. Sol Mutterperl, Inc. 402 S. I v ,ark e t St. 150 Fox Stree t 719 S.Los A n geles 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 Co. NuMode Co. Paragon Bag Co. Inc. Paragon Novelty Bag Co. Paramount Bag Co. Joseph Fasthoff Pat Bags, Inc. Novelty Co. :Philip Bag Co. Phoenix Novelty Co. Princess Hand Bag Inc. 18 Hanover St. 98 Phoenix Row, 47-51 Day st. ,, 102 St. 241 Winter St. 156 1 Ave. Schwenksville, Haverhill, Chicago, Richmond, 310 S. St. 9 Little Burnet St. New Brunswick, 241 Winter St. 25 Hale St. 170 :Elm St. Haverhill, Haverhill, . 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.Clinton St. 229 S. Market St. 77 St.Francis St. 3419 Rutger 3t. 5th & Cherry 31 Union St. Sussex, Stockton, :)!Jliz
PAGE 168
-153--4 ' I OUT OF TOWN LIST CLASSI-o '-AME ADDRESS CITY STATE 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 MAr ket 3t. San Francisco, 28 E. 10 . . W ashington 3t.3oston, 340 M . anhatta n Ave. Union City, 310 Washington St. Bridgeport, 64 Beach St. Boston, 110 N. Main St. 820 Mission St. S a n 324 Front St. Plainfield, N.E.8th & Arch St. PhilAdelphia, 120 Sa1• :yer St. New Bedford, 17 N. W. 3rd St. M i ami, Leather Goods Co. Style Craft Bag Co. Leather Goods Leather Goods Sunshine Studio Co. Co. Inc.---Bringeport, 131 Sanford Ave. Plainfield, Supreme Leather Goods Co. 150 Bay St. Jersey City, Texas & Mfg. Co. Theobalt & Ehlert Co. Three Mountaineers The Treasure Chest, Inc. Uneeda Belt Co. 1445 N. 5th St. 120 W ater St. 91 Federal St. United. Bag Co. Universai Hat Works Universal Leather Goods Co. 538 S.Dearborn St. Variety Handbag Co. Vassar B8g Co. Inc. Vin Clair Mfg. Co. Virginia Art Goods Studios Virzi 1028 Filbert St. 149 N. 12th St. 1308 C nurch St. 1220 Ave. Wm. C. Waugh Co. Inc. 686 Lass. Ave. Well Mnde Lea. Nov. Co. Inc. 34 Jorwich Ave. Western Bag Craft 119 E. 23rd St. Wilcox Co. E. J. Wilkins 9811 y 0 C1klill1 ' Milwaukee, Asheville, Asheville, Newburgh, Lynn, Linden, C hicago, Phila lil:elphia, Stroudsburg, Philadelphia, Los 1 n5e l es, Cambridge, Colchester, Los Angeles, Athol, Gloversville, . . .. C[-11. N.J. t l ass. J. Conn. M<'1.ss. Ohio C al. 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.ql. B C 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 " " " " " " "
PAGE 169
J. Abrahams & M. Wilensky Wm. Ammerman & Sons Anchor H a ndbag 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 Compa ny Black Mfg. Co. S. Bonamo Antone Bontos Mrs. W. S. Bowen Broadway HandbRg Buoyant B . ag Comp any Buy American Novelty Company C. & G. Handbag Company T. Caroloni Angelos Cassarsis F. C astillo John Celestri Century Novelty Corp. Nick Chakoutis Phil Cohen Columbia Purse H. Corman S. Costanzo P. Cozzolino Creative Handbag Company John Cretakos Customcraft Dominick de Gaetano John Dignoti Liberia di Gregoria Ignazio di Silvestre Dostal & Comp any Andrew Dougenis Edward Elias Henry Euler Excellent Leather Goods 9811 -134. EXHIBIT 11B11 -PART 3. CONTRACTORS ADDRESS 34 C9ttage St. 8 T errR c e Avenue 693 Bro a d way 119 Attorney st. 6 E. 27th St . 1209 :Broa dway 513 Boston St. 162 Chestnut 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. Spr .ing St. 2 !V,urra y St. 21 W. lllth St. 170 8 86th s t • S. Jeffersqn St. 49 W , :man St. 775 Avenue 15 w . 24th . s t . 6113-19th Avenue 2 Len ox Avenue State 31 Tnompson Avenue 71 . Will i ams Avenue 40 w . 17th s t • 7714-l3th Ave. 199 .ve nue T 3217 Broadway 148 B ay 22nd St. 218-25 132nd Ave. 46 W:rrnan St. 34 E. lOth St. 404 Fourth Avenue 36 E . 1 0th S t . Poughkeepsie Hasbrouck Ht. New York New York New York New York West 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 WestLynn 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. Mass New York New York New York N. y. N. Y. N. y.
PAGE 170
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 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 Made Right Leather Goods Co. Majestic Handbag Company Manno Bros. Phillip Manno 9811 -1E'5-ADDRESS 2 33 PoJell St. 1743 -62 nd St. 115 Vi. 30th St. 224 Livingston e St. 420 E. 93rd St. 145 Spring St. 1 0 4 Franklin St. 45 E . ?.0 t h S t . 313 Fulton St. 940 -39th St. 107 Be,qc h St. 98 Murray St. Br o o klyn New York B rooY.:lyn Bro o klyn New York Haverhill New Yor k :3roo klyn Brooklyn Y o n kers Newark 19 S. 37 W. 20th St. 15 W. 24th St. 316 St. John St. Ave.Flainfield New York N e w York New Haven 54 W. 21st St. 582 Evergree n Ave. 85 S. BroadwaJ ' 105 S. First St. 611 Gra nd 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.: Bro o klyn New York N e w York 1Jew York Otisville :BrooY.:lyn New York :Brooklyn Broo klyn 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. M ass. 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.
PAGE 171
CONTRACTORS NAME Gaper Masgal Joe Matra Pasquale Messina M . Metter 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. 156 1 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 223 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 L eather Goods 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 Marcus Sherman M . Silver Mary Sokoloff Spring Valley Leather Goods Star Handbag Company 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 Woodside 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.
PAGE 172
CONTRACTORS NAME Superb Le a t her G0ods C o . Superior H a ndbag Company H. Su pnick Teddy Maide n Handba g Co., Samuel T eitelbaum Mountaineers Tip Top H andbag, Inc. Tivoli Handbag M. Triesti Trio Leathe r Goods Co, Upright L eather Good s Co. Vienna ]ag Company Martina Vayrouz Joe Vilaseca Warschauer Novelty Co. Wonder Bag Company M. Zaro z. Z willenberg 9811 -157ADDRESS 1613 E . N . Y . A v e 1 2 0 W . 30th S t . 3 4 w . 27th St. 34 Wall S t . 48 W . 25th St. 2 8 W . 27th St. 152 3 E. 172nd St. 15 W . 2 4th 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. 3 3rd St. 54 E. 11th St. 118 E. 28th St. 110 W. 27th S t . CIT Y J3rook l 'i'Il Ne', v Y o r k New Yor k Norwa l k New York Asheville New York New York New Y o r k New Yor k New Y o r k N e w York S. Plainfield York New York York New York Nev; Y ork STATE N . Y. N . y . N . y . Conn . N . y. N . C. N . Y f N . y. N . Y. N . Y. N . Y. N . y. n . J. N . Y. N. Y. N . y. N . Y. N . y.
PAGE 173
-158-' ' NeTis 3u11etins issued by the Cod e Authority 9811
PAGE 174
EXdiBIT 11C 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 issued b y tho Code Authori t 3 r of the Ladies 1 Handbag Industry to keep al members o f t 1e posted and on lill e.s officia l rulings , inter:9retations, ets. In ac l .d.ition, contributions from memb ers of the industry are \ :elcomeC. a . n d r il). be given ti1e r>idest if of gen eral interest. Your name ni 11 be i thheld if :ro-.J. so request. Uge the columns of the N:B,'WS LlULLEr;_lil: to g-...l.estio n s , discuss, criticize or suggest. The staff of t h e Cocle A u . t hori i s E l rwys at your service, and a i nvitation i s to all members o.the industr-.t to stop in and get c.c qu['.inted. * * * TRADE PRACTICE COl\ J'LAL.TTS Th e Tra d e Practice Complai nts CoMm ittee appointed by the Code t•.r has b een approved b y the Ao.Jnini stra tor, and is now ready to f1.mction. A trade : w actice com nlaint refers to a complaint alleging violation of anzr ])rovi sion o f a code othe r than the labor provisions. Complaints b r meMbe::-s of tl1e egainst othe r members of the industr;r or by any against D.P. membe r of the inc1.us try for violation of any of the fair tre.de 7 1 r actice r :u1.es of tl1e code, may be :filed Pith t h e Code Authori In all cases , d10r e the compla inant states that he does not lili sh his name to oe reve a led, ni s Fishe s mus t be respected. Under separate cover there is being mai led a complete outline of the functions and vwrkings of the Tra d e Practice Comp lc:'..ints Con uni ttee. ADVERT! SING EXPEN SES: A member requestecl a ruling on the follo'l'7ing situation: 11We rrould like to find out exn ctly l7ha t course of action to follov1 in regard to inserting an a .dverti sement i n the C hristmas Catalog sponsored by a resident office. Tnis is to be paid for b y us directly to e . n advertising service comp a n y . This concern handles the entire ph;:rsica l mc-.k e -up of the c.:talog for the resident buying office. Th e Stlm tl1nt n e are to theM is to cover only our part of the cost of the COffiTjO sti < rt 11ork 9811
PAGE 175
. -160uhotogrephs and gngra.vings necessary to illustrate our merch.?ncHse. 11 T h e ruling of the Cooe Authority follows! 11Since the above office is a 9uyer of your TJroduct, ana also 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 for the nurnose of obtaining advertisin::; for anuroTJriations or allowances foT. the nrinting of a holiday catc-tlog for retailers in which the goods of the manufacturer are offered for sale r 8tail thru the medium of the retailers' This form of advertising definitely comes under Section 12 of Arti-cle VIII of the Code of ]'air CoiTll'Jetition, payment for such advertising by a manufacturer would be considered a violation of the Code. * * I' RETU11.NS: The following letter addressed 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 lette r of October 12 ad0ressed to : 1r. 'tichberg, in which you cite the refusal of a handb .ag
PAGE 176
-151resuect to the brand, g rade, ouality, origin, etc. , if the m erc:-...-=>ncUse of e i"' fm.mo t o b e com 1 non snli t lea tJ.1e::r len it oeen br<-'nde d o r sold [l s leather of a higher g r Fde, you are not only nrivi1egPd to r eturn it but it is your to n ;nort the firm ing it to the Cocie Authority ElS a v iol-tor of the Code . from t h i s urotection, it ''Cl s not intended in El"'Y'Jroving the Code thctt it wou l d nreclude the r r tur11 o f merche nchse wl.1ich was faulty in manufc::cture, even though the seve n d a y nexioCI had elansed . I believe you ill f ind Code Authority of the Ladies' liandbab Code very sym•at:1etic to your ryrob lel:l, 2 nl1 tney rrill no doubt sugbest the Droner Action for you to t nke.11 Leigb E . Ore Assistant T I t i s a violBtion of Code to sell on terms in eYcess of z...j1 n eom . Fi::rc:t of t:.1 e clE tinr-: fo:r goods s l : ilJ>ed Pfter the t ,renty-fifth of the nreceding mont'h is in excess of 3/10 eom. If you ,::rant firs t of the r :10nth CIF ting, you are violatin g the Code for t h e L RcUes' L1C1us t ry. * * -1: Your FJttention i s cEJlle0 to t11e f r ct thElt sales Pssessment s non cue Rnc! YJC'.y a b l e for Senter1'ber. In n.ccordRnce Vlli th l?.A assessr.1ents a "' e bc:tseo on s a les 25, 1934, t b e effective of code. If you have not y done R O , 11leP s e inc l uc1e s a les figures from ! arch 3 1 with your nex t ln.b e l or'ier. * * >,( LA3'E'LS: Since July rlat e becc.m e effectiv e in t :1.e a g r,qnfl totc..l of 1 3 , "'4:1,8011 l 2bels have been issued un to Emc1 including Octo-Je' 1 9 , 193L:. 'qe gulP r L A J e 1 Stock on -,_nd Retailers * * O b9 , Or') 001) sno LABEL DISPOSITTO.i.1 -q-co-:: _!JS : The l <1b e l signifies t hc::1t E 1ll ladies' handbags, uocketbooks or nurse r oea r ins such l e b e l s nre manufactured uncier Cod e conditions r1s t o wages, hour R , tra .de -practices, etc. '1-r;.le entire -rmruose of the : '1P.A l
PAGE 177
-162-It is ir.mer[-ltiv e thcit t h e s e recorc1s b e submitte:.' !anuf<' c turers I'\ . , :'-!umb e r of A11uroxim
PAGE 178
-10'_7-CONTRACTORS: Before glvlng out to a contractor, make certain that he has signed the Contractors 1 Com"0lianct 3 Form, as no labels will be issued to be usecl cont1actors W f lO have not signed this form. ate * * CONTRACTORS' AGREELiENT: The National Industrial H.ecove r y Boe .rd has approved a sta!ldard form of 11Contra.ctors 1 A g r eemen t 11 betr.reen members of the ladies' handbag industry and co.ntractors nhereby contractors signing the agreement ple c1ge them selves to "comply with all pro vis ions of the code of fair competi tion11 .for the ind-:1.stry. .In signing the approved agreement, contractors are pleciged to sig n a "Contractors' Compliance Form" i ssued the inclustr;v1s Cod.e Authority. (Copies of this agreement will be available v e r y shortJ.y.) * * * THI E BOOKS: TDe Compliance Division requires all payroll records to be kept in a separate time book , all entries to be mao. e in ink. TRADE PRACTICE Cm.f?LAIFT S The Tratc e Practice Complaints Committee is empoTiered to hear all complaints arising out of violations of the trade practice rules of the Code of Fair Comnetition for the Ladies' I n ord. e r that each o f t:1e industry may familio.rize :1imself \7i t h t!:le duties nnd functions of this commi tteo, are sending hereTii th a copy of the rules governing the procedure of t h e Trade Practice Com:olaints ttee. * * * HANDBAG FRAME REGI STRATIOE: The follouing notice has been received from the Cod e Authorit y of t h e Handbag Frame Manufacturing Industry: 9811 11'Je take in annou...ein g the desig n ation o f t h e Desig n Registration Bu reau, o pere>. ted und.er the auspices o f the Ih1ode Island School of Design and located at Providence , R.I., a s the imp artial and disinterested agency to be used members of this Industry f0r the reg i stration of origina l fram e designs. The Code Authori t;;r has desig n a t e d t his Bureau pursuant to the provisions of Article IX of the Supplementary Code of Fair Competitio n for t his Industry, and this designation has r eceived t h e approval of the National Recove r y Adr.1inistrc:.tion. Registration of original frame designs commenced on Monday, October 22, 1934. Protection of regi stered designs exoire s six months from the date of registration.
PAGE 179
-164-Ue believe that desi g n registration in this will uork to the distinct a d v antage of your membe r s a s 11ell as our onn, anc . qe earnestly solicit your full coo peration in the prevention o f the pira c y o f regist e r e d d esig n s." The C ode Directo r s will be g le..d to unsner any questions regarding the eff ect of such registratio n on the h a ndbag * * * The Cod e Directors c a n help y o u in cases Your custome r s return goods aft e r s even days. Your customers pay on t e rms other t han t h e Code terms, 3/10 eo m . Your customers insist that you pay for their When you are a ' s ked to give anything of v alue for the purpose of influencing or rewarding the action of any emplo yee, CONSULT THE CODE DIRECTOR S * * * DISTRESSED 1'.-l:ERCH.A.liDISF.: Yle de sire to call your attention to Trade Practice Rul e 15, Article VIII. " N o mem b e r of the industry s hall dispose of distressed merc handise e xcep t u p on prior notice to the Code Authority, along uith such information as the Code Authority and the Administra tor may prescribe. G eneral fall competitive items s hall not be sold as distressed merchandise urior to Decenber 26, general s pring coo petitive item s shall not be sold as distressed merchandise prior to Mother's Day, and general summer competitive items shall not b e sold as distressed merch andise prior to July 4. Subject to the Administrator, the Code Au t hority may permit the s ale of m erchandise at p eriods other than t hose h erein established. 11 This provision uill be strictly enforced. Tempt ation is greates t a t this time of the Yea r to manufacture addi tio n a l quantities to tak e care of "last minute Christmas orders". These additional quantities frequently prove to be the that absor b s all t h e p r ofits of t h e season. Try t o make y o u r percentage of close-outs a t the end of this season the smallest 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 Can you afford to take it? * * * Hm:WJORK: Ther e will b e a hearing in lfashington on Tuesday, November 2 0 , 19 34 at 1 0 : 0 0 A.M . Room 128, Willard Hotel, to consider the p roposed interpr e t ation a nd a mendment proposal of the Pleating, Stitchi ng and B onn a z a nd Hand Embroi dery Industr;}'• 9811
PAGE 180
L -165-In accordance with t h e interpre t ation proposed b y the above i n clustry , home'>'Tork on hand-beading , hc;,nd-cro chet i ng and ';ii 11 be prohibited.. Since this char:ge might seriousl3 r affect your you m a y ll i s h to attend this hearing . If you desire to s peak against the proposal, please l e t us kno11, so tha t Tie may regi s t e r your name with the Administrator in c l of the hearin g . I f you cannot b e present in person, write or telegra:! h to Mr . r.;. D. Vincent, Acting De puty Administr ator in charge, expressing your vie\7s. * * * Members o f t h e i n dustry are remi nded. that the workers in their office , stock room and shipping department co m e under the \7a g e and hour provisions of the C ode, the s ame a s f actory workers. Article III, Section 2, provides •.• " N o person employed in shipping , clerical, or office rrork , ,mles s he is employed in a mana geria l or executive capacity and e a r n s not les s t h a n thirty five dollars ($35.00) per week , s }J.all b e per nitte d to work in excess o f forty ( 40) h o •.1rs ;:) e r 1 :eek a v e r a g e d ove r a n y one ( 1) month l)eriod. n COMPLIAl\ 7CE DIVI SI011 STATIST I C S (Octobe r ;)J., N umb e r of Investigation s I!a.oe Non-Compliance Cases Pending Non-Compliance Cases C l osed Restitution .l'Jumber of firm s Number of Individual EmDloirees -'-' Total A mount Pc:dd $ 1 2 , 0 2 4 . 2 2 A pprox imate runouBt pending $10,200 .00 Numbe r of Man u f acturers Numb e r of Con t r actor s Approx imate Number o f i7orkers Employed. i n t h e I n dustry * * * 807 49 130 4 7 9Cl 325 1 7 3 1 5 ,800 SPECIAL SALE S: A certain r e t aile r noF. in the market is seek1ng to obtain a special concessio n of a singl e a_1.:tanti ty' of bags, so h e put it to a manufacturer i n t :is ma1n er: 11All I want is six doze n of your r eg'.l lo.r ne':'T f all 5o ocls e.t a s pecial price for a . s ale." Aside from the f act th&.t it defini ruins the s a l e o f your neiT fall styles in that particu l a r city o r .cities, it cre o . tes a resentment a gainst you b y all other manufacture1 s rrll o may b e force d to follow you and acced e to t h e demaflcl.s o f t his buye r . It is a n old
PAGE 181
-166 -trick, and it is obvious that b y getting six dozen bags at a special price from ten or more mAnufacturers, this buyer has succeeded in making his 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. are five good reasons Tihy you should not: You are creating unfair competition for your customers who ill good faith have boUht the same goods from you at regular prj 0es. You are destroying your complete line in uhich you made a sub investment. A "">pe0iA . l sale" of only six doze n 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 the very buyer to uhom ha•.re ranted this 113p:::.,,inl hi.\ ?11• The natural inference is . . ) t if y o u did it for 3rou nould do it for others. IJ:l.:-lefore, your line is not a t regular prices for regular selling. The most important reason i s tha t you did not allow for such 11special buys11 in figu:ing the c9st of these bags. 11PROTECT YOUR PROFITS n B1PORTED IviERCF,ANDI SE: The folloning letter Tias received from the N.R. A . : lfSUBJECT: Status of R e l ationship betrree n Ladies' Handbag Code and Im porting Trade Code. A question of jurisdiction, assessment, etc., has arisen betrreen the t w o above mentioned codes. There are in s picture three dis tinct groups, n amely: (1) the strictl;)' manufacturer of ladies1 handbags; (2) the manufacturer lilho also im ports ladies' h andbags; (3) the strictly importer of ladies' handbags. The first shall oper ate entirely under the provisions of the code f o r the ladies' handbag industry and she .ll to this industry all assessments. The second class shall operate under the code gove ing the major part of their bus iness. for examule: if a manufacturer does $100,000 worth of per cent of which he manufactur himself, importing the other forty per cent, he shall be governed by the cod . e for the ladies' handb-9.g industr y and shall pay assessments to sa.i d Obde .A.uthori ty on t h e $ 1 00: 000 figure. He is not subject to an of t h e Importing Trace Code because such Crrle .A,J.thori t y does not have a n exem ption und.er X 3 6 . 'Jlnere a manu• f[Ci:n:--er of l adies' handbags imports s o m e of the integral parts of the cc:nplete bag and is, \7e might sa2r, primarily an "assembler", he is subject to t h e Ladies' Handbag Code entirely. Th e third is an import strictly, and is subject only to the code for the Importing Trade. n 9811
PAGE 182
* * * PAYROLL REPORTS: Payroll Report Sheets h ave been furnished to all manufacturers in the Section 8 (c) of the Code, authorized the Cod.e Authority to ohtain information and reports required for administration of the Code. The Lac3.ies1 !1andbag Industry has nev e r h a d true vital statistics and failure to submit payroll reports s everely handicaps the Code Authority in its endeavor to maintain up-to-date and 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 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 ruling, assessments are b ased on sales from March 26. , 1934, the effective date of the code. If you h ave not already done so, please include sales figures from March 26-March 31 with your aext l a b e l 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 3,487,0 00 13,215,500 \7EEKLY AVERAGE 512,857 741,109 940,806 879, 3 48 DAILY AVERAGE 102,571 148,202 188,161 175,869 GEOGRAPHIC.AL DISTRIBUTION (AS OF SEPTEMBE R 30, 1934) LOCATION Ne\1 England Middle Atlantic (not including l YYC) 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 1 00.0 There are many manufacturers who have alread,y adopted the Label Dis-9811
PAGE 183
-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 upon the foreman's accuracJr,. his memory, his arithmetic, or.his veracity. 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 ;Record. as p. physical inventory control over their slq:s and as a method of preventing payroll uaddine. The shop i 9-, charge
PAGE 184
I VOL. I I, No. 3 -169• . . EXHI:&IT "C" CODE AUTHORITY LADIES' HANDBAG I NDUSTRY 347 Fifth Avenue Nevr York N E W S BULLETHT DECEMBER 5, 1934 WJ.R. RI CHBERG 1 S VIE\ i S ON A PERMANENT N . R. A. 11 In the first place, I b elieve that there is a demonstrated soundness in the fixing of minimum wags and maximum hours for eac h trade and industry for t he purpose of preventing the forms of unfair competition in the overworking and underpaying of If these requirements are fixed' by co'mmon agreement, i'f they are flexi ble e nou gh to fit actual conditions, if they are not the la.st word, but l eft subject to improve ment by collective bargc:dning , the y should' protect both employers and employees and advc:mce the public interest. In the same way by c cmmon consent the intolerable evil of child labo r' should be outlawe d from trade and industry. 11In the second place, admittedly dishonest business -practices should be prescribed. But in the twilight zone between dishonesty and legitimate competition, trade and industry should s e e k first to establishan accepted stande1rd of unfa irness befo r e ' before writing m andatory r equirem ents in a cote . Enforcemc m t must fat.l wher e the r e is no gen e r a l a . g ree ment that a law should be enforced; We must '!j'.'ait in pa.tience for the dev e lopm ent of a custom tha t has a ttai ne d Rlmost the force of law b efore we ask to write it into law an d to comvc l dissenters to obey it. "In the third plcce , statisticC'l information, accu r a t e c:md cam pre hensive, is necessary for e cono mic s e curitv in a n industria l civilization. Business should not grope its way ahead i n f og s of uncertainty. It is in the common interest that exa.ct r eports of production, prices, wages, e m ployment, and such fundam enta l knowl e d ge of e conomi c conditions, should be a v ailable to all v ho have the desire a nd intelligence to chart the course of com;nerce and finance a.cco r ding to the e v e r shifting b alar.ce of supply and demand. "Finclly, to what exten t sho uld we r ely up on and insure the freedom of agreement among organizations of e m nloyers and employee s to promote their separate and comm on economic interests." * * * The Code Authority must insist that your pPyroll r eperts, an d labe l disposition records arE: filled out and r eturne d to us not late r than the tenth day of ea.ch month. If yo u do your part, the statistics for the industry at the end of the fisca l year v :ill be invaluable for e v ery member of the industry. 9811 LABELS: In order to f acilitate thB examination of bags for labe l
PAGE 185
-170requirements, w8 h a ve 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 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, VIII of the Code, and also, 'as it is prohibited by a ruling of the :B,ederal CC'mmissi9 . n on a similar case. On February 2, 1934, the Feder2. l Trade Commission ruled "That in c0nnection with the sale, offering for or distribution in inter state com: nerce and the District of Columbia of suit cases and other lugg age or other products made from the under layers of sealskin known as "Split cePse and desist from designating and describing the same "Seal" or "Genuine Ser1l" 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 twenty fifth. 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 handbag s in work at contractors is easily ascertained by some m anufacturers thru the use of the Label Disposition Record. This is done by charging the contractors with the production, p e r Label Disposition .... ecord, and crediting them with the finished goods per receiving r ecord or purchase book. The differe nce r epresents hand bags in work at contractors 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 v aluable in nting padding of bills by contre.ctors. Some manufacturers feel 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 a record to which he can refer, either to refresh his memory, or to detect clerical errors such as forgetting to charge a contractor goods. 9811 * * *
PAGE 186
171 COMPLIAlTCE D IVISION STATIS TICS (November 30 , 1 934) I n vestigati ons: Numbe r P r eviousl y Renorted N u m b e r Mad e During Nov e n b e r Numbe r Non-Compliance Cases Pending Number Cl o s e d During N o vembe r R estituti on: Numbe r of Firm s Total Numbe r of Individual Employees T otal Amount Paid Approx i m ate AL1ount Pendin G $13 , 347.3 9 $10 , 000 , 00 * * * REGULAR LABEL SALE S 80 7 2 7 4 7 2 9 0 53 9 34 1 081 T OTAL VffiEKLY AVERAGE DAILY AVERAGE JUNE J ULY AUGUST S EPTEMBER OCTOBER N OVEMBER T OTAL REGULAR LABELS 1,220 , 000 ' 2 1 5 4 0.00 3,487,000 4 , 045,000 4,3 1 0 , 000 1 8,745 , 000 428 , 571 512,85 7 7 41,10 9 9 40 , 806 879 , 348 1,023, 080 TOTAL STICKER LABELS (Mfr s , and tie t ai1e r s ) ••• 7 83,80 0 GRAND TOTAL •..•................. ... . . . . . . 1:9, 528; BOO L CCkr iON New England * * * GEOGMPHI C Al DISTFTBUTION (es o f OCTOJ?'.E:rt 3 1 , 1934) i 1ianufact u r e r s Onl y LABE L S ISSUED Middle Atlantic (not NYC) N e w York City 3,856,125 5 , 273 , 200 4 , 930 , 300 Middle West Sou t h Paeific Coast 9811 * * 624 , 375 2 1 5 , 000 99 , 500 14,989,500 85,7 1 4 1 02,571 1 48 , 202 1 88,161 1'75,869 204 , 6 1 6 PERCENT 25.7 35.1 32. 9 4.2 1.4 .7 1 00 . 0
PAGE 187
"-172 -CHILD LABOE: One of the most important prov1s1ons in the code is the prohibition against employment of minors belov1 the 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 com mented 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 a form of Contractor's Agreement has been approved by the Administration, copy of 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 th your next label order, * * Tell the Code Authority your problems. If it is an industry problem, it 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 I N as a forum for discussion. Your sugges tions or criticisms on 21ny 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
PAGE 188
-173 -CODE A U rHORI TY PANDBAG E-.:uusr.rrx 347 Fift h Avenue N e w York -18 --------------------------SEASON'S V 01 • II , N o • 4 J'TEV, S BU!.,LET I N 21, 19 3 4 GREETINGS At this time of t h e year, it is customary to l o o k b ack and stock of our accom plishments the pPst t welve mont hs. The Code for the Ladies' Handbag Industry vras a pproved b y the President on Me.rch 14, 19 34, and went into effect t;?elve d ays lA.ter. In t h e l a nguage of the National Industria l R ecovery Act, the policy was to b e "to prov)..de for the general welfare by the organizatio n o f industry for the purpose of cooper ative actio n among tra d e group s ---to eliminate competitive practices --to r educe a n d r elie ve une m ploy ment --BJ;ld otherwise to reha"'JilitP.te industry and to conserve n ational resources." The Code has accnm plished a great to the b asis of com petition in the industry from that of under-paid labor and unregulated hours of work to that of com"9eti tion based o n style , g_uali t.y a .nd s ervice. The Code has effected t h e eliminatio n of c hil
PAGE 189
-174Interpret?tion: Time furing which Cln employee is inactive by reason of interruptions in his work beyond his control may not be construe d as time not worked, nor excluded in computing his of labor and wages. The term "interru.T Jtions" inc.ludes, but without limi ta tion, the specific instances set _for.th under ' 'Facts" \7henever the imminence of resumption of require s the employee 1 s presence at the place of employment. Such reg u 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 temporary layoff, thus avoid com puting 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 concerning the suoject hereof, _arrived a t b y employers and employees, whe n 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 igned) lh A.-Harriman Administrative Officer * * * NE;, CONSUMER EMBLEt ' ( AVA ILABLE: In response to numberless requests for a 1934 Consumer.1s Embl em to s ymbolize coopere:ition with .rJRA codes, an attrBctive small sticker has been prepe.re. d for displar . in homes, on automooile wind0\'1TS where permissible, etc. These emblems be obtained by writing or telephoning to the Loc a l NRA Commit tee in your .town or city. Last year, 60 million consumers sig n e 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:11s: "In the effort to bring security to all, I will encourage and petJonize those business establishments in vrhich the Blue Eagle of :t-TE..A Codes is displayed." 98 11 LOCATION New England REGULAR LABE L SALE S GEOGRAPHICAL DIST .rUBUTIO N (as bf NOV E !ffiE3 30, 1934 ) Manufacturers Only L AJELS ISSUED 4,5&9,125 Middle (not including NYC) Ne, York City I \ 1idd l e South Pacific Coast ' 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
PAGE 190
SUMMARY SHOWING PERCENTAGES BY MONTHS . .AUG. :31 SBPT • 3 0 OCT . 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 3 2.9 3 4 . 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 .-Census, has issued census fit:,u.res obtaine d in 1933 for the manu facture ?nd c c-rd cases. Sta.tistics for 193 3 , with comparative figures for earlie r years, are given in the follovring tables. All figures for 1933 are preliminary and subject to revision, Summary for the Industry: 193 3 , 1931, cmd 1929 Number of establishments Cost of materials, fuel, purchased electri0 e nerGY Value of products Value added by manuf?cture * 1933 2 1 8 $15,298,920 $28,299,0 04 $13,000 , 084 * * 1931 260 $22,600,817 $43,147,05 3 $20,546 , 236 1929 290 $35,351,605 $68,627,515 $33,2?5,910 ADVER TISING EXPElTSES: It 1s a violation o f Trade Frectice Rule 12 of Article VIII of the Code of Competitio n for t he Lad 1es1 Handbag Industry if yuu pay to circulc:rize your be-g s thr t h e medium of any large buying orgcmization. The investigators are particulc?rly tc l ook for such violations. * * * BLUE EAGLE: The use of the Blue Insisnic? on ?.ny cards or labels inserted in bags is abs0lutely illegal unless it is the official label cf the Code Authority of the Ladies ' H andoa.: Ind'l.stry . * * * MISBRAr Dil'1G: The Tanr ers 1 Council a n d the Code Aut.nori ty of the Leathe r Industry are cooperatin, with the Ladies' Handbe1g C o de A uthority to step all misbrandin.r; of the kinds !=lnd q u.ali tie s o f lea ther. The Federal Trade Commission has ruled that c o w hide 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 labels or by inserting into the bag a printed ticket. 9811
PAGE 191
-176 -IF FATENJ1 LEAJlnBft C0!\1ES: Do not forget that cold VTeet . . ler and cr?ck ing patent leather' are a lmost '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 11pe.tent leather1'-is not guaranteed end cannot b e returned b e cause of cracking. * * * HOi.iEWORK: The Code Authority has A.pp.roved a plPn for the control of and the eboli tion of child .labor. The plan r equires the registration '!'i th the Code Authority of nll hornewo rkers on hand-beading and crochet-beaciing • . Jlhe Code Authority wi.ll .set all piece work prices to be paid homeworkers on hand-beading and crochet-beading. All other homevrork operations, such as finishing of bag s or leather brC"iding is strictly pr,1hi bi ted. * * * FREE GOODS: Jlhe Cod e Authority has ruled that the giving of free goods such a s initials or other articles n o t attacned to or a part of such bags is e. violetion of e trade practice rule. * * * RETURN S: Members of the 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 11No member of the indu s try shall accept the return of any merchandise shipped to a purchaser, nor allow credit therefor, nor exchange merchandise, after the m_ rchPnd. i se has beE-n in the T;)OS session of the pi.lrchaser for more than seven days, rhere the agreement of sale has been fully performe d-.by,. such member. v This rule is designed to protect you PgRinst this evil --\iliy not take advantage of it? * * * 9811
PAGE 192
-177 ... Exhibit 1 1 C11 COD_, LADIES 1 :i ID::D.AG E1DUSTR Y 347 Fifth Avn nue York ..:..V-=0'-"L::;.c,:--=.I..:::ci..::;I--=}.:...;o:......:...• _ _?_LT_Ll:E_T L\ _ J A:. !UALtY 2 3 , 19 3 5 SUBJECT : Ruling on LnC:ies I In n.ccordance with y:Jur recent inquiry, the which I m2..ae e.t the he..,ring conducted j n J.::JJ.u..;.ry 9 , 1935, r e lc..tivc t o the pro:rosed omendi1lcnts to Coc . e o f tho LaC.ies I I n dustry nte.y be res to.teG. t c..s follows: First, , ;. rcstr tenci.lt vmuld. em:9h:1..si ze th..;. t t:1e coG..i 'i C".t i of ai:.y indus try sho u lcl be :-1.ccou;.Jl i shod. so th0.. t the definitio n of the be ox1ressed in tems of generic '',nci n o t in terms o f 11 f o r tho uscwn L 1to parts u pJ n tJ.1c usc':. , it is obvious to 2.11 t hc.1. t ridiculous s i tu.:-1. t i be p reci p i ted. 9811 * (Signed) G::-::ORGE S . 1J?.. ,J)Y AGministn:.tive Officer * * @O _:Q__ I N 1930_: Tne has t h:;.t :Blue EF.l.:.)cs for }X"'..rticul:.r trd.os industrie s marked 11193411, :-'.s well f.'..s those ori[:;il1 a lly issued under the President I s ReenJ:;l oymen t Agroe;inent, m-;..y be used in 1935. * * *
PAGE 193
-178 ORDER #6686 PRESCRIBL:TG A PROtii:BITI1TG DISMISSAL OF EMPLOYEES A"LillGE:D VIOLATIONS OF CODES OF FAI R COII!FETITfoN :By virtue of c..nd pursw:mt to the n. uthori ty ves cecl in me unde r Title I of the Recovery Act o f June 16, 19 33 (ch 90, Stc.t. 195), and in order to effectuate the purposes of said title, I hereby prescribe the following rule and tion: No subject to :'. co of f<'.ir co mpetition ap-"'rove0. under titl e dismiss or demote any emJ)l oyeo f o r makirg a com:plc:tint o r giving evid ence with r e spect to n n violation o f the p r ovisions of .:my code of f -:-.ir competition approvect under said. title . All persons ar0 hereby informed th". t section 10 (a) o f the N ati:>na l Industria l R e c o v e r y Act p r escribes a. fine n o t t o eY.ceecl five hundred dollars ( $ 500) or imprisonment not to six (6) months, or both, for the o f .::my rule o r regulati 'Jn prescribed unde r the authority of sc..icl 10 (<'..) • . (Si6Jled) FR4 . NK. LiiJ D. T3E WHITE HOUSE May 1 5 , 1934. CO:.JTRACTORS.: This office must be n otified immodin.t ely 1Ji.Jon t::.king on n.ny new contrl\ctors. Unlo3s you mt; i s t e r your con tr.:1.ctors you [\re not permitted to iss u e letbels t o them. * * * RETURNS: o f the industry c.r e reminded that f o r vari ous r easoi1S , this season of tho ye ...... r unjustified returns of merch2ndise. 13 of Article VIII 9811
PAGE 194
-179111Jo member o f the in.lustry shll "'.ccep t the rc t1.,_rn of r'l'l ;'/ m erch:mc i sc s h i•: :ed to a Jurchaser, nor J.low c:r ecl i t thend'or , 1 1o r exch-:>.i 1 c;e '.nG.isc , . ..,_ftc r the mcrch:-nC..ise n.s -Dcc1.1 L.1 th"" possession of tho fo-r more tlnn seven d::1.ys, v:hcre the r.{TCOl"'lent of s". l e h'l.s been :?erforracc: by such i:10mbe r .11 This rule is clcs ibrneci _ to you ac:/'• L st this evil --Why not to.::e r.dvmt: ".u; o f it? REP:S.L 'TE:J VOL. II 4 1TEWS :SUL:::.ETET * * * C01IPLIAiJCE })I VISIOli ( Deccmb e r 31, 1934) Investig::.tions: 1\fum b c r Previ aus l :r Number Mo.do Duril1c; H o vemb e r Tot....,.l rJumbe1 :i:Tor:.-Caml)linncc C<•.sc s P ending Nunber C lose d Durin : :; November Restitution: l i iUmber of Firms number of li.1cli vid u ;. l S m)loycos Totnl A..rnount 013,891.14 TotCJ.l Ar.lount PeYtdinc; $12,640 . 1 0 * * * TOTAL L.A.EBL SALES AVERAGE --JU}ffi 1,220, 000 JULY 2 ,154 , COO AUGUST 3 ,529,500 3 , 4:87 , O JtJ OCTOBER 4 ,045 ,000 NOVEl.IBER D ECK 11BER __ 2_L 410 ,000 Tot;. l 21,1G5 ,600 Tot-'..1 SticLer L
PAGE 195
-180REGULAR 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) Manu2cturers OnlY LOCATION New Engl .. nd Middle (not including NYC) Nevv Yorl:: City Micd.le W est South Pacific Co::.st .. • •• I ' 9811 * 5 ,095, 625 7,761,200 7,557,800 839 , 875 . . 333, 000 132 ,000 2 1 '71J ; , 500 * * I • PER CEl'TT 35. 8 34. 8 3 . 8 1.5 . 6 100 . 0
PAGE 196
WEEKLY co SALES (X) 11.230000 ...., ...., 1000000 750000 ' ; I 500000 ' 250000 -N !Week N-r-f r-f r-f 11-. • CODE AUTHORITY LADIES' HANDBAG INDUSTRY GRAPH of WEEKLY & TOTAL LABEL SALES 1 9 3 4 ' \ LEGEND Weekly Total . ttl ...-4 N r-f • . • PI t> () () a fll 0 ' ' I ...-4 CXH ...-4 C\l TOT.AL SALES 25000000 ro oooooo 15000000 10000000 5oooooo I ...., CD ...., I
PAGE 198
-182.ltDivihfiSTrtA TIVE ORDER X-130 I n t 8r-p r eting P:covisior:.s i!1 C orio s nhich E}:tend r i nimum ::_:{:1. tes o f P-w to Piece-Workers Pursuc.nt t o authority vest ec1 . j_n t 18 1 a tion ,",1 Industrie.1 R e c o v ery Bo;.,rcl uncior Title I of the Industri8.1 Recovery Act Executi v o J f l:.hG President, inc1 uclin[, Executive Order l'Jo. 6859 , cJ.n.t e d S e p tcE1be r 27, 1934, a ncl otherwise, it is 11e:t oby o rcJer e c t p r ovisions in codes V!hich extend t : 1 e 'l..}T,1icc.tio n o f minurnum ho"LITl y r . " . t e s of p':'.y est'" ,:ulis.led tnore i n to errp1oyees e ngnged o;1 piece-wor:: b 1.s i s be .:1nc-: t h e y here by 1.re intrepr e t ed a s fo1l ovrs: Unde r ['..ny suc11 provisio n L1 <'.ny c o d e , employ e r sho..11 compute the c o mpensation to e::1,ch p iece v:rorl: e ml='1oyee on b -':',sis of.". -;)erio d o f n o t more trrn sove i 1 COilsecuti v e C.. • .y s . cr m _ )loye r t o e.",ch of his p iece-work f o r p erform e d by s nid em _ >1oyee durin.=._ such ::e ... i or : VV. A . Harr i m"'..n , .A.c1ministr ntivo Officer :-:3..:.-'.E 'l O SS:A Y: I n '"'-recent spe ech b efore t!1.c C o11structio n Indust:.7 MeeGint;; q t K11o:x:vi1le, T e n : 1., Arthur D. Whi tcsir 1 G , rmmoe r o f t h e }htio n'll I nc.ustri ..... , l Rec• Jvery :Soa r6. sc.id, 11It ::tppe<..r s ine v i t .... -.J1 e th.,.t the TTk'"'..jor iJrovisions of the N IP..A in some form will b ecom e ". jJerr.1an ent o f our 1 e c isl-,_tiorl.11 1ir . W:1i tcsi c ;_e .,_ls o s ;,iC. th.,_t o f t h e b e by tho act1J..2_l r "su1ts oot aincd the efforts o f the NRA U') to this tir:1e :mel for t h e next fevv weeks. * * * I i i P 0 R T A lT T 0 IJ:1 I C E The CoC.e Authority rmst i : 1s if:t YJ1..1r report s , c:mcl clisoosi ti J n r e c ords ",rc: fillec, _ out c.nd rt: turned 9811
PAGE 200
-183to us not L!.'1.l1 of O"".cl1 n:o11th . If you clo your part, the st ...... tistics n v.:_.i1n.b1G for the industrv a t the end o f tho fisc"'. 1 yec.r w ilr b E .i:nv :.1u..'1.b1c for e very r :1emb0 r of tho industry. F<'.i1ure to submit pnyTo 11 TGJJorts constitutes a vio1'l .tinn o f the C ode. 9811
PAGE 201
-184CODE A UTHORITY LADIES 1 ?..AlTDBAG I lr.JU SISY 347 Fifth Avenue 1-!evr Yorlr VOL. III No. 2 Fill32:tUARY 20 19 D:CSIGH ? IRACY: Protection ag'"' .inst d.esiL;n for tl1e L1dustry :O::.s 110t been I n the ?Ylee .. ntime, members of the industry who dosi r e to )rot oct oriG;ine.l d.es ie;ns r.1o.y do so by , 'l:.fl'•li c [ttion for .::.. d.esign p;:;.tent . office o f tho Code Authority will furnish t h e :1r2coss'1r y inforilk:'1..tion, will give instructions how t o fill out lle cossary documen t s , you in the pre)ar"'..t ion of the dra wine; , which must c.ccompany the A dcsi c;n )'"'.tent m0. y bo lJrocured vri thin thirt;y o f '.n It to protect the d.esic,n for 3\ ye' . Ts ')r loJ.lf;e:c, if required. It is e;.1forceJ..bl o in the Fedor.l Courts v1i th injunction proceediilgs, if n e cessar y . Tne cost is ten w:i1ich is tJ.1c governmm1t f e o , the cost of m.1.king the dr::'..W il1g. If 2 ' 0 U a r : inte r ostecJ. in for l')O.tents, communicP . t e with tho office of tho Code Authority. * * * ORlJ:SR X-134 Interpret:::'.tion: o f i.1ome vrorl: "'rovisions contained in various code s . FACTS: CoJ , r .l a ints lnve bee n r ecei v eC.. t:i1c.t cert.::1..in eml)loyee s Ol1CT•t: e-:".. L1 t :1e } l r;:;.ctice of r..rticles, for rrhich i."to.s been furnished bJ the employer, such )JrocessL1g beL1t, either il1 the hom e o r li vin[; qUr"'..rters of the employee, or in a so-ca l led shop within the home o r living quortc r s o f t ho em:Jloyeo. l. b y "hor:le or livin::; qu •. '=l.rters" c\S the term i s usec1 L 1 C o d e s of F<'.ir Competition which provicle for the o.boli tio:n of h:::.me work? 98 11
PAGE 202
18 5 -2 . :Uoes th'3 T)tr:'rl abovtJ nnder 11F;.cts11 constitute ::1 violc..tie>i.1 e>f such ' > f -_-..... i C ')r:r_reti tio:n? INTE ill'RI,TAT IO U : 1 . Tne ton o r livinc, qu:.1rtcrs11 the priva t e house, 1.1riv<'. t e 2-oc. rtnent o:-"lriv1.te roe>m, v1hiche ver is the mos t c.s ::. lnme by the P.?:l.d/ o r h i s f amily. 2.. The :) r"'.ctic e of <:.rticlcs, the rna teriD.l for which h.1.s b 6 :::n furnisher: by the em o l oycr , v:hether performed in the homo o r li vLl, o_u.r'J.rtcrs of the o r the soc alled shop, opera ted \'Ti t hj_n the h ome o r living q u arters of the employee, as the t e rm 11no: , lc o r l i vine q_u.1-rters 11 is ctefinod herei n , constitutes viol.ti ;n o f coc'.es which Drovicle f o r the abolition of !1orneworl: ; except <:.s r r ovidcC. in6711A , d ated ld2.y 1934. D . C. J..-n"Ll'\ry 26, l'J35. * * (S igned) W . A. :-lo..r r il'1'l['.n , Officer I r.-.. .:ts tri::tl Recove r y :Boetr d • J * ?'.AZARDOUS OCCUPATI _Q.J_S _ : The Labor Advisory I3or . r d has r ecorr1r.1ende d t n2..t miiYHs unc1.e r 1 8 be excl udec.: frau L1e followinc occupations in the induntry: l. As drivers of truc:-:s o r o thot motor vehicles 0 r 2.s heh )ers o:c in such v e hiclco. 2 . In, or o r stea m e:n:_,ines use the t i o ... 1 )l G ''-c:, oil ..... s prino 3 . I n the O l•e r:•.tio'-l, custo.:y, or o f e l o v['.tors, cranes , der or o the:..' h ) i stinc :;;pl.:-trn.tus, except in the ;:f. ' ( l ) 8-E clefine d by the Americ;:.n Stn.ndJ.rds Associn.t irn o r ( 2 ) . J r e l e v ators equip--e d onl r for 0.utont.1.tic .. 4 . Firinc; of steam or vnter boilecs ( e . ce:•lt boilers of n o t more ( 15) poune.s ) r es::; u r o us eel sol e l y for heating * * * FJ..i\J.ID:CAGS AiYi-::J Pl.BSBS FO:-: 25 O R LESS : P re1J8.re .ti o n s are beii.lC T:L"'..de to i:ncluc' .. e 'the.. 8f Ltt.d.ios I H.c.nc"..bP.G I n d u str;l the i:tcmoers 0f tho I m i t '.t i m Leat l 1or ''.n d L e3. ther Nov e l ties 9811
PAGE 203
-186-Group whCJ .. nuf.:->cture l '.dios', misses 1 ancl children1s mndbe.gs thc..t ret:'.il _iron lOtt to 2fe ;:lch. This group vr2.s formerly incluG..eO. un:< ':: ! : : >: ':< * * * * * * " •': * F..ANDEAG A D S FOR JAiJUARY 1935 Ads ap: :eari:l.[; i n the N ew York Times, .ll..lne I i c c.n , News , Mirror, Evening Sun, and Evening Journal Tot".l Humber o f Ads --7 9 SHOWING P.:.,IC:SS ADV:SRTISED Und e r t o $1.08 t o $2. 0'1 to $3.00 to $5.00 to 5o
PAGE 204
-187CHART SHOWING WMBD OF ADS :BY 00 -as -ro 16 . tto 10 -1---I I 'l Up to 50 50 to $1 $1 to $2 f2 to $3 $3 to $5 I I COI4PLIANCE DIVISION (January 31, I Investigations: Number Previously Reported Number Made During January Total Number Non-Compliance Oases Pending Number Closed Dur.ing Jsnuary Resti 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
PAGE 206
-183LA.BBL (J::1.nu.ry :)l, l :?3!j ) Llw:CL SALbS TOTAL \'::E::.=KL 1 A V:.CRA.GE 420 512, 857 741,109 940,806 879 JAI 1-! A JULY .At'GUST S:DPTD.!3ER OCTOBER rJOVEl illER DECEii})ETI J.AlTUARY T o tc.1 1 ,226-; ot:Jo . 2,15-1,000 3 ' 529 '50 .i 3 ,487,0 ') 0 4 ,045,000 4 , 3 1 0 ,000 3 543 5J _1.: __ , _ _ _ 24:, 69:J ,500 1, o:: 3 , oso 60:::; '500 805,340 T o t -1.l L:::.b.:'ls ••••• 800,000 ( l vlfr s • a n C.. :2.e t ".i lr: : r s ) .•••• * * * Your speci-:>.1 '"'.t Gent: ::m is ,.,(.".in C " .11ec. to the 85,714 103, 571 148,202 188,161 175,869 'J04 ' 6 1 6 169 ,932 E L1E EAGLE • • • • • The use of the E l ue Er'_sle Insi gniP. on 0-.ny c a rds o r l.-:1.b cl'"' Lu:;erte:-L1 b'"'.g s i s absolutel y illegal w1less it is tl1e 0ffici -.1 l::.bol o f tl1c C od.o .Authority 0 f the L acl ies 1 H::.n0.bac; I n0.us try. * * * T!li s office !:1U!3 t be ;.10 ti fieC:_ te1y u::;:lOn t::'.king Jr: .:ln y i'.8'.'' C011tr-.ct-Jrs. Unless roc; i s t e r cor_tr::-.ctors yJu: ".re ttcC:. t o issue l":nels t o them . * * * 9811
PAGE 208
-189-CODE AUrnORITY 347 Fifth Avenue iQL. III iTo. 3 ?l , 193!'3 RL.'?UlTD: As :.;Lou.r:ced in our l etter o f i arch ll, 1 935, tile .A.uth ori t y vote0. t o refuncc to members o f the ind u"' try t l 1 c sum of )30, 000. out o f us. T :1e [JnQ'L1.:.1t Jer,1ber is to r e c e ive will b e b :.secl UlJOn the omo-w.1t c o11tributecl by hir.1 t'o tl1e C ocle Authority during the buG.cet yee. r frm:.1 Li::.rch .-:;6, l93L1: to Mo.rch 2'J , 1935. Suc:i.1 C.istriJUtlo n is t o be mc.c'.e soon ;-,_s }JOssible ::.fte r e-:-.ch menoer sh..,_l l r eoort l.1is coo . J l e t e s ales U ) J. to 2.nd incluG.il1c; l vhrch .2;:}, 1933, how e v e r , th:1.t such r;1ember w i l l :i.r .ve ::;-"'.iC. ;:tll ;-:--tOUl'1ts c lue t o the Code .b..uthori t y on ccou.nt o. :.ssessY.len t s . I n orde r t ycn.rr c l1ec;: be m r ' . i lc.d to you it is you furnish this office n j_t h yol'.l' sc:.les figu.rc.s u;o to -.n.ci. incluC.inc; Me>.rch 2-, l93L), :1.nci. t o enclose for ronount c:.u o , ::-.s soon ".s )Ossi.ul(., t"..ftc r C1.at c . Do o t Tl.it until the c nc1 • of tht... nonth to s end us your fi._,ur0 s for 1-:....,.rch , .s the b•l 2 .nco o f the month m0.;r b e rc)ort.:.ci_ L1 A )ri 1, ...,_s usuc..l . Those r efunds 'iii 11 not b e crcdi t ee: to JO'....".:J.' but vrill b e issued in cho f o ri':i. * * W5 <". r c "'..L;i =rour ...... t Jenticm to Articl e III, S ccti :::>:,1 of the. C oCc. fo:-c the 12. .ics 1 E ndb0-g Industry: 9811 c r o• c= llo--er-. J. sh1. --1 . , • --.Y u. " . •C. ! cleric .l, o r office VJor : : , unless :K i s il1 .::t m:tn"'e; cri:-'.1 o r executive t y "1nd c-: .r:;.:.s not loss 'ch.'U1 t hirty fi v c doll ".r s c r rrc c k , sh1ll be •ermi t t eel to w orl: i 1 of forty c r wo J.: . l. v er:.c.,ocl o v e r :my one m'Jnth lcri ocl. 11
PAGE 209
-190-T"ncr o see m s t o b,:; C'r sic: _ ,n" . . blo misun(crst .nc .l"il6 n.s to this socc_,_o_:., L1 f<:.ct, sm:1c r.lcrivors f oc.l th.;.t the Co{ c io ... L ref o :cri:1r; to hours W'"'.gos no t 7 .ly to clerica l or inc; forces. T his lJrovisi Ji1 i s no im--ort. n t th:.11 otho r of the Co{c, violatiOi"! of t:lis s e ction c=:-.rrios vri th it tl1c :c •:JOi"'.t".l tics .s p r ovidccl. for ."'.11 viol ...... t ions of the Co0.e. * * * member' of :""Lny subject to --.i 1y Cod e coDtl.ini. l o.bc l Drovisj.ons sh:::tll s ell, dc:-t.l L1. or use c:.ny l:1.bc.l :::.,h:_c :SC::.c_;lc or b"'.:;,:ril1.G ::>.ny other emb lem o_r of thv othe r t:.r. t issued. by Code Aut:10 ri t y for such inC. us try j:Ju rsu"'.n t to provisi of such CoC:.c :.11c.. of this i:JC .:b c r of :.n;r such us try sb:. l l sell, in or usc .ny l...,oc l nhoso fo:""1 c ontents o r L1si[.:.,n i:-. "l.r<; so simil. r tor-. 1-.bol issue(o; <'.n y such Coc'.c h.uthori "'.s to bo c.:ecc-Jti v o •11 This ;Jrovisi.on c:ocs i10t :.1rohibi t the u s e of ticl:ots or l abels t o L:_cl.icr.t o tho or o f ,:;tc., b1:: doos } Jrohibi t the usc of the ']J.uo Ertglo on such tickets, * * * Do1 1E'..ld R . t iw :Jilector of the }atin. Emorconc y Council, th8 foll o vin:, st ...... toment: 9811 11I cliO. not submit t o Sci1n.t c =il1-:..ncc Committee on lvhrch 1": : , 1.ny l ist of coclcs or :.ny num -ber of c e des, with ."'. th2.t the y should bo :c;_r o:cC::..1 • I s ugccstc-:.-:..::. nctho( of clo"'.'ling with t l o by the S ervice Inc.ustrics, I S1JG;' .:stcC. blc c onsolid"'. t . . 011 of n. 1<'-rc;c ;:lumber o f sm,'..l l codes ' ' .nc1 s"' . ic-:. t h . • t if all cocl c s covering L:;s c:: th ...... n ton thous"'tnd employees per code sJ. ould. 'be conso1i
PAGE 210
:11 Your is es,:;ecia lly cr:.llo {:_ to Articles 6 e.nd . 1 2 of the La be 1 R : gulr> . t ions ( of w!1ich w i 11 b e found Oi1 tno of your o r d G r bl t :1l: , f orr.1 4). 6.11All l a b::.ls are to be secure l y to thG h['.:1dbag , or i:l a con3picuous position OE the 18ft-h rmcl sido, l ! rc.f e rr..bl y o n the mirror •11 11 S e c1:r el;y "'.t t\.chect11 me .ns e i thor scvm to the pocket, J r into the r'r::1me. 1 2 11All <:.n. to 'be usocl. exclus i v e l y b y o r for the firms to v.rhom they 2..re i s s ued. .11 of lo.b els f ror", one m-:.nuf-.ctuTe l' to is strictl: ag .. inst 1.::-.be l r et;;u lG.tions, "'. n c c onsti tutcs a viol2.tion of the Code. This c use s i n l'ocords, r.mC::. it L il}lOss iblc to c o : tro l compli.:m c e with thG p r ovision s of the C o d e . * * * ;iliTDEAG AcJ<:; :;;,OR ]'E3.1lJ.A2Y , 1935 Ads in the Nev-.-YorJ: Times, Americ::.n, News , Mirror, TrHnme, Eve ni::1c; Su..1, Evening J0urn.:1.l, Post. Tot 1 Number o f Ads ---119 Tot. l N-umber o f Lines 1 8 ,840 Under 50 / to "'1 " " t..? .) to s t o "'' Jt) c... • .. J . \, . to J.,,-()J to Abo v e 50 . ..1, Gl. 0 '\-2 .oo : )3 . o n .50 $7.50 ... :+'. t..J (1)$ .50 ( LJ:) .19 ( 2 ) : . . 77 (6) J.. ,., f1 r : • .::._ ; (1) $7.50 (8)$1 0 .00 ( 9 ) .39(12 ) .59 ( 3 ) 1. ( 0 ) ( 1 0 ) "l.J5 (l) 1 2 .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) . (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 rrot-.1 1 5 ;r )') 1:3 8 12 r..,O o.,JI.,J ,.J . _ .. Avcr"/'':G AC. Cons j _ s t s o f 150 Line s
PAGE 212
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 $5to $7.50 Over $7.50 9811 • • • STATISTICS 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 • • •
PAGE 214
-193 ... An a l r s i s o f the Industry : lh.lJnb e r o f M a n u f actu r e r s Numbe r of Contr actors * * * LABEL DI V I SIOH (Fe b runry 28, 1935) REGULAR LABEL SALES TOTA L 'NEEKLY A VEH.AGE JUH E 1 ,220,0Cr' 428 , 571 JULY 2 ' 154 , 0')"1 5 1 2 ,857 AUGUST 3 , !S29 ,500 7L2.-1, 1 0 9 S EPTEl\iBER 3 , 4 87,000 940 ,806 4, t J 4 5 , o ; o NOVELiB:ER 4 ' 3 1 ') ' 000 1,Ct33 , C80 D E C El'fBE R 2 ,410 ,00') 602 ' 5 0') J A HUARY 3 , 54:3, 500 805, 3 -40 FEBRUARY 3 2 092, 0 0 0 813 , 684 Tot2.l 27,790, 500 Tot2 l Sti cker L a b e l s • • •• 800,000 (Mfrs. C:\::ld. R o tr. . i l eTs) 3 3 7 175 DAILY AVEP..AGB 85,714 1 0 2 , 571 1 4 8 , 2 0 2 188 ,161 175,869 204 , 6 1 6 1 2 0 ,50' 1 61,168 1 6 2 '737 TOTA L •••• 28, 5 9 0,50 0 * * * MUF2' BEDS: W e a r c i n r e c e i p t o f c l.:-.ss ific.:.:.t i o n o f J:tuff beds by H r . C. H . J2.mcs , Executive A s s i s t'..nt, T e x tile Divis i o n , as f o llo , ds: 11 The manuf-:.cture o f muff b o0.s : . s such i s cove red b J r Loil.i e s 1 H3.ncr b ' . g C oclc e :re e ? t v.,rhe!l beds a r e r -ade -by a m::muf;::>.cture r :').S an i ncidentn.l p8. r t in the m a nuf.::tc turi n g o f com p l e ted muffs whe n the y a :re i n c lude d i n the Code for t h -:.t m:.nufa c turer.11 * c 9811
PAGE 215
-194-li .i. t II C11 3/.::7 ].:ifth .hvei. 1UG lle11 York V 01. I I I , o. 4 ----J-:8\JS _ _ _ _ 1 2 , 19'35 ''' ' .. -<>< '*****"'***********************"'*** . .-};ffiMA..3 the Cocle t ) f the L;,tdies' Hr>. n1.1se o f . ;ro9s ineo_u a l i ties i n lr.bor costs , nnd . . reg arclles.:3 o f r n-r ;1i s tpJ.es th: t ocen :1n.de, un:ler the ,TR.A Act, ::ret to the "best o : : 1::.-wr:-letJ.: ; e C'-nd the industry :1.'\S show n a i:-_l):r:oyenen t C.ue to the o-oerE1t io:L 1 of the Code, C\nd it i s unquestionel:. fr>.ct tllr . t this Code has reduced shortened dail:r hours 0 f , elinine.ted child labor , increE'sed. r:rnges t'.S -:ell a s reciuced unfair trade practices ap::_Jreci" . b l y , therefore j BE IT that the Cod e Authority of the Ladies 1 J Industry goes on record P.S heart1J.y the President 1 s request to extencl the IJRA. The resolution r h.:.ch ""E\.S Y JClG SOd "b:r the C od.e Authority [l,t its last • 1eetin;; been sent to the ; Jenbers of the I;ouse of Re )resentative and the Senn. t e . Ho11ever , vour Cont,;Te ss: 12.-:. aad. your Se .1o.tor are an:dous to your O lJinion. It i s : inJJortn.nt thf1t individun l 1enbers of the indu3tr:' <"del thei r t. Y) to tlwt of tho Code Authority . i1ire or Dri te the l for-70ur district, nnd t h e Senntor fron your Stnte, urginc then to s Lnnort 'the President's re(1uest for the of URA. * * * 9811
PAGE 216
lJE , 1934 LY TOTAL STAriSTICS J i VI.3IOi; 31 , 1935) lTulber Previousl y ITu,ber iiade ]urine; ;:tl .rch l\funber ?endinb Cl o ;;ed D1ll ... ill:; 1 ;;1rcl1 : e s t i t u t .L oil : 7 3 8 85 3 1 70 o f }7 irs It, J21uer of I nC::.i vic-(un 1 . 1041 :rot r . 1 AJ10un t P c . i ' 302. , )00 t) O j , 3L,!;() 3 , 85, 71.4 10.2, 57 1 1 48 , 202 18l, J . S l 1T:>, 8,3 S 204, 0 1 6 l2.J,500 l.. ) l ' : .68 1 1 ?J! r{( ) l 1ARCH TotC". 1 811 3 1 , j44. , :JOO Tot, l SticLe!' Lrbels .•....• 0 7:),000 ( !:."rs . Ret i1el"1 ) GRD T OTAL ••••.... 32, 3.19 , * * * 315J
PAGE 217
-196-HAliDlAG .tillS . ".ARCH, 1 C)35 Ads A-oDeC':tinr ii.1 the F eTI Yor1-: Tines, .nneric<:' . n , :;ens, irror, u Tribune, ::Svenin c Sun, Eveni:1{; Journ<'l, ' Jorld-Telegro.n, Post, 3 roolJ.yn E[1: o;le , :Jroo: . ly11 Tines-Ul1io1 1 Total Nu:1be r of Ads ----205 TotG.l Eunber of L i::.es--<'2:1, 039 SH0.7riG AJJV:SRTIS:C:O nder 50r to $1 .00 to $2. 0 1 to $3. 0 1 to $3. 0 1 to Above 00 :)7 . 50 S 7 .50 .10 ( 1) : $ .so ( 4 ) :$l.OS (2):$2.29 ( 3 ) : c''7. 85 (2.):$5.95 (
PAGE 218
9811 -197..4 Letter from Code Director showing division of Industry betwee n Le ather and Imitation Leather.
PAGE 219
-198 EXHIBIT D. c 0 p y September 1 3 , 1935. 0. W . Pearson National Recover;{ Administr13-tion 426 Investment Builuing Washington , D. C. Dear Sir: Answering your inquiry, , the of bags made of leather in value. , .is about fifty per cent, and fifty per cent imitation leather, 6ther fabrics. Figured in units, the of bag s made of leather is about thirty per cent, an d seventy per cent of imitation leather. I trust this will you the desire d information. Everybody here joins me in our kindest regards. Since r ely (Signed) A. IIJ.ittenthnl AM:AS ' 9811
PAGE 220
9811 -199-E X H I B I E -------Division of Economic lesearch and Planning :Brief
PAGE 221
-.?':Y> EXHIBIT 11E11 NATIOtTAL !lliCOVERY ADin N ISTlATION DIVISION OF RESE....PCH :tLANNiiJ G LADIES', MISSES' AND"CHILDRE1J'S;-H Al'JDBN7-S INDUST!tY Prepared by James P. Davis Approved by Andrew T. Court, Unit Chief First Edition Fe 8, 1934 9811
PAGE 222
-201LADIES', MISSES' AND CHILDREN'S HANDBAGS Number of Employees On the basisaf 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 of production, this condition. of vigorous growth indicates that this. industry should be expected to increasing employment and 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
PAGE 223
-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 Agreement were about 48 per week . The adoption of the President's Re emploJment 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 is r elatively 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 larg e 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 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
PAGE 224
-203In Article IV, Section 6 there is a prov1s1on 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 mi ght 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
PAGE 225
-204. ( ., :'• ,: I E X H I B I T F 9 811
PAGE 226
. 205 -E X H I B I T F CODE AUTHORITY LADIES 1 HAliDBAG INDUSTRY 347 FIFTH AVENUE NEW YORK March 13, 1935 . Col. Walter Deuuty Administrator NRA, Division 3 Commerce Bldg. D. C. Dear Cbl. We are submitting for a :oproval the budget for: the Ladies 1 Handbag Industry as approved by the Code Authority at a meeting heldMarch 7, 1935 at the Hote l McAlpin, New York. Period Amount Labels Present Bu
PAGE 227
206Amount of On the basis of sales figures as reported un to January 31, Assessments 1935, and estimating the sales -to the end of the period, March 25, 1935, the total assessments due from members of the industry will amount to about Comparative Budget Figures .AM:R:AS 9811 The amount 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 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. A. Mittenthal Code Director
PAGE 228
0 p y ol. Walter M an 'gum eputy ommerce Bldg. ashington, D.C . ear Col . -20 7 -EXHIBIT F C ODE A u THORITY LADIES 1 _ HANDBAG HIDUSTRY 347 FIFTH AVENUE NEW YORK March 13, 1935 . . . '• transmit herewith for your the buaget for this Code Authority rom the perio d 26' , March 25 , tog ether with cop es of the resolutions uassed by the Code Autho rity. budget ove r that o'f t _ he ureceding one • . here are but one .or two items to which I i't necessary to draw our s pecial The firs t Purchased $200.11 This Authorij;y has. frqm time to. to -pw.chase bags dvertised and in the stores, so that they way check sources f supply and found_ necessary, state-ents made by various_ outlets. . . . .. he second are ' two .items of $ 500o' . "Statistical Workn, and 1'rade D e v e lopin<:nt .'and R e s earch" • . T p i s Cod e Aut;hori ty h _as during the ast twelve months b e 3 n to get together a nicture of this ndustry t o t he end that and nossibly herein find the answer to some manufacturing and distributive problems hat have troubled the m for so long . A g ood start has made, and feel that g f work should e nGoura ged •.. aking the budget as a whole, it m eets my entire approval. Each ite m n it has bee n carefully and I think. the Coje Authorit y is t o e for the care with which they have auuroachc d this imuortant tter. I therefor ask your of it. Very y ours, wP:E: A (Signed) 0. W. Pearso n o • . W. Pearson , s -tzra:ti on Code Aut hority Handqag
PAGE 229
diXHI:BIT F :BUDGET COD"E AUTHORITY for the t HANDBAG *** 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 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 $2.50 per thousand labels. This total amount io credited as an advance a gainst the assessments. In the following month after nurchase of labels, the :;,anuf 'actur'3r r eoorts his sales at 1/4 of l%, . aonlies his advance credited: to him at: the time of purchase, and remits for the difference, or is credite d by the Code Authority, denending u-oon whether the difference is due the Code Authority or due to the manufacturer. tn the latter case, he applies this credit on his next purchase of labels. The record of labels sold applicable to last year's budget is as follows: Estimate of Label Sales from March 26, 1934 to June 18, 1934 (date of first sale) Number of Labels actually sold from June 18, to January 3 ,1, . :1935. , . Estimated February 1, 1935 to March 25, 1935 Total Labels f,or Old :Budget Period . ' 1934 10,000,00p 25,262,200 6!000!000 41,262 '200. The estimate for the new budget for the period March 26, 1935 to label 11 11 11 March 25, 1936 is 65,000,000 labels. This estimate is divided into 45,000,000 of the labels sold to the present members of the industry, and 20,000,000 to be sold to the two grouns, Imitation Leather & 9811
PAGE 230
-2C:1ovelties Industry, and Ba gs, Bathing Ba gs, etc. Industry. hich are soon to be included under the administration of this Code uthority. OTECTION O F (a).Designation of the person or persons who will receive and account for all funds. Answer: Executive Director, Compliance Director, T r easurer and S ecretary. (b) The giving of adequate s ecurity by him or them. Answ er: Adequate bonds. (c) The segregation o f Code A uthority funds from all others, s enarate bank accounts b eing n e c essary. Answer: Funds are d enosited in t w o banks and those d eposits are mad2 up of Code Authority funds only. (d) The keening of accurate records or records and disburse m ents, of amounts l evi'$d, of amounts receivable , of amounts payable , and of comm itmen+,s. Answer: Compl ete detaile d accounting records made of all income and expenditures. (e) T h e submission of periodic to NRA, Answer: Monthly audited statements by indepe nd ent outside firms of C ertified Public Accountants submi tted to NRA. (f) An annual audit by inde n endent outside comnetent agen cy. 811 Answer: Annual audit made hy independent ou tside firm of C erti fied Public Accountants submitte d t . o NRA.
PAGE 231
210If assessments are based on classes of establishments, erplain the basis of classification and indicate the n ... ,.;r."ber of es tabl i shme;nt s of each class: . . ' Assees men t s are based on sa::.ec; o f manufacturers and manufa9turing jobbe r s of ri: 5. c!l r,h ere 8 l.'e ar. r[!ro.r.:.:.r.,,'3 i:F-l y 285 concerns. Con tractors, who numb e :(' appr.;:d.nc-.ts:::.;l 1'?51 are not ac;..;;l;s:;edo GenerRl a . .:>::;.cblishments in InC .l.' . st:"'y b,. N ;"m'be-:." of es toLe C888ssed c. J.liusnl:e r: d. .f!J '''r L of e Gt<:..!:,lis1.r.nen'Ls t1a 1 ? assessments sa:. e s .fo r .L -1 c;3f.5. 500 325 325 $35,000,000 e . o f r.::t ... es 01.1 wnic.h .s.::>sf:s.!r-lent:s hCl.V'e been tJ a a t e f. Vo:_lJJ!l3 cf sale.. :i. on. 11;t.ich -ssccJsoents will be colJ ecte,J g . c;f as r/" D :o:.r-:,>-::(' 1935 h. Totr:l 2 . n :m.:..al f o : 193-1935 i. Geogr:'.L:Jh ical d L o t.::i of .l.rers: Sc.•. l a s .for tr.:;; 8tading March and sr.d.::.!'lg 31, .L l.J'::tsed. on reuorts qy mar..u.a c c1:.rers :xp to 3:.:., 1935 • .Area 'Eastern Southe r n Midwestern Pacific Coast Explanation: .. Total N e t $23 7.c ; 3 : LSO 60i. < . 3 1 ' 1 J O 22E: : . C:43 --------. 'j . $26,093,664 $ 7,000=000 $ ' 9,000,000 26p 1934 submitted 9lo50 2 oSt.J 5.,3 3 bl4 8 ? . 100.00 Eastern--New Connecticut, Rhode Island, New Jers ey, Penns;/1 vanta-southern-Maryland, Florida, Midwestern Illinois, Wisconsin, Missouri, Ohio Pacific Coast Washington, California. 9811
PAGE 232
211 -EXHIBIT F 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 Hr . 1.1. Berkowitz :-:irector of Compliance n :r. H . S . Secretary 11 :,:;:ecu ti ve Salaries Clerical R . A . Segner, to Compliance Director :E\.1.ll TiL1e $25. C. Praters Boo_ckeener tl .31. P. Cohen Asstt. :J:j:pr. & Statistica l tl 18. H . Feller & Statistical tl 17. E. Levine II 19. D. Uohlfeld Steno. Tel. Operator II 18. A. Sosansky II 23 • Y. Grod.zinsky Stei1ogro.,pher II 17 • J. Brodkin L2.bel ClerJc ll Salaries $188. $ 9,852.00 Co'Ilillents on Clerical Sc.laries: The above sched.nle contenplates an increase of three c toll.:.rs per week for all clerical e n ployees. These employees ':7ill h2.ve been with us than ,one. year and will be. enti to such i n _ crease. . . The Exe cutive r eceives $5000. per annum c.t the pr'esent time even though tl1e intention wa s to pay him $5 200. per annum. This will take effect st.:.rting with the new budget. Investigators: L. Merzbach Cl1ief L1vestigator .11 Time $60. D. Sobel I nve -i; ic;t"'.tor II 40. H . Rosenberg Inv:J st i gc.tor II . 30. I • Schor I nve sti::;<:1.tor II 27. One additional Investic;e.tor II 40. Totcl Investigators Sn.l aries $197. Comments on I nvest.i;:c.tors1 Salar.ies: The above scl1edule contemplates the :Zo l lo':Ting .increases: L. Herzbach $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 a t $22 . 2.nct ao soon as he is experienced, he Hill be given his increase. Totnl Salaries $46,176.00 9811
PAGE 233
-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 C LEGAL FEES $ 3,000 2,000 $ 5.ooo The budget contains no provision for legal fees. EXHIBIT D TRAVELING EXPEN S E . Members of Code Authority Payment is made on the basis nf exnense vouchers submitted by such member for each individual 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 eXPenditures. All other employees, and Mr. S obel, when in met .ropoli tah area,. are naid for traveling eY.Tienses on 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
PAGE 234
2 13E.iG!IEIT F EXHIB IT E COl.iPLIANCE 1nJNCTION S Salaries 4r. Berkowitz, Director of Cor-1pliance Kiss Segner, to Dir. of Camp . Miss Grodzinsky, Investit;ators L. Merzb?..ch, C hief • D. Sobel \ir. H . Rosenberg Mr. I • Schor One additional Handba g s Purchased $25. _n. $42. $60. 40. 30. 27. 40. $197 Region a l Office (See Exhibit Traveling Expenses (Se e E:d1ibi t D) Employees Total Com:pli['..nce :G\1.nctions 9 811 March 2 6 , 1935 June 17, 1935 to to Total June 16, l 9V5 I : ar. 26, $ 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 $ $25,612
PAGE 236
CODE 4YTBORITY I.epu;s' He\NllBAG 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 TO FEBRUARY 281 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 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 StJMA.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
PAGE 238
llaJndacturer. Jlew York Total. 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 1,267,720.00 706,038.00 4o3.994.oo l,423,oo1.oo 1,4o1,6 61.oo 1,6oo,252.oo 1,987,893 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 ot 1/3 ot per Exhibit ll Buaber ot Sa1ea bporta Received ••• T otal IWlu-tacturera Ret Salea. laaeae•nt ot 1/3 ot 1per .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 35 ,202.00 38,271.00 216,374.00 255.7)2.00 7,5()2.00 29,055 93. 889.66 6,910.78 4o3.552-00 289,352.00 197,331.00 61,680.00 264,728.00 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 12,37G.oo .685.00 ,,873.00 10,295-00 16,918.00 13,085.00 253,01 .00 186,145.00 !! 207 ,o62.oo 234.594.1)0 5 36 .555-00 193.120.00 95.27!.00 90,76 .oo 272,569.00 314,61';.00 72,551.00 5.635 41,192-00 32,318.00 3,944.00 21.a16.oo 31.765.00 43,l366.oo 44,439-00 9,866.00 7.349.00 2, 97 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 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 7 ,65t.fl0 53.295-00 66,645.00 6,925.00 9.267.00 1,G12.oo 1,168.00 4,035 4,002.00 3. 781.00 31,221.00 16,635.00 1,, 96.00 11,830.1)0 21,4o2.00 28,143.00 39.535 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 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 DtlBIIfG TIB IIIORTB : RB!IIJAR1'1 1935 112110J.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 3 1 30 291.09 13 1 1 1 1 1 4 18 SUWART .IP.T SAL!S REPORTl'!D BT IU.HDBAG liAJ!Uli'ACTURJ:RS ARD PERCENTAGES ACCORDING TO AREA. .t.rea. New 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 • 1,558,894 .00 412 ,67 2.00 145,039 J08,669.00 58,680.00 782.00 135,6o6.oo 95.39<'-00 3,620.00 6,280.00 1 7!!,836.00 176,466.oo 531.00 371,154.00 149.364 .00 14,207.00 6,3 .oo 9,020.00 79.298.00 "5,026.00 2 ,1 .oo 10,120.00 1,497.00 22, 1.00 8,839 11,171.00 434.oo 4,704.00 271 664,190.00 1,184,959 5,3Q6.oo 2,213-97 3.949.86 17.68 68 192 3
PAGE 240
muaber WilU'l' Jl, S'Pllld.tte4 '1 B'Julllbac IIP'•atur.ra. Wee I BR4ecl IM;lber of Per a one ltlmploxech Metropolitan Be• York ••• Other C1t1•• •••• Repone Reoe!Yecl.o Total • • • • • • • • • • • • hm'bar of Hours ,orkech Hetrapolitan New York • • Other 01 tiee• • ( Tota • • • • • • • • !!o,gee h1
PAGE 242
(Includea Rece1Yed to 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 STAXISTICS JOLT ]1, 19]4. UHIIIIT C. lllnLBER OJ' COMPLIC.A.NCJ:S 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 ====-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 = ---
PAGE 244
CD "" .... .... gmw mmmxu HPJ:II• ''F"69 'llllllmt __ Jfuaber lhulber of Reporte of Beporte Reoe1Ted, R eoe1Te d , la8ber of Per1on1 ._ployedt Ketropolltan Bew York , Other Cltlel, , , , , • To tal • • • • • • • Jfgber of Hour• Workedt Ketropolltan Iew York • • Other Cttiee •••••• Total • • • • • • • • 'IJ'agee hidt Ketropolitan 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 l-4.482 31,90 3 . 0 0 =t__ r . o o = . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 , 685 48,52 5 1 000 3 1,019.00 2,00 .!ota.l t. 424 78 68 266 664 348 1. j42 49 371 463 863 359 41 114 22 84 37 1i 8 1 22 8 3 3 11l -6,07-=-1 , 592 570 39,431 18,949 1 1 21Zo1 26, o45,oo 10,28A. oo Metropolitan __ New Y!)!:k 103 10 16 , 35 217 39 118 121 307 167 50 5 3 10 3 1 10 8 3 3 Other 321 68 52 131 447 309 989 331 253 342 556 192 4 106 22 34 32 6 5 12 4,21 2 109 107 104 ___2_Q_ 100 102 -122..... 207 J9E 3, 05 8 2,990 ?.,880 t .. 44?._ il82 4J2 _ 6 2 . 1,273.00 1,435 -00 1 ,331.00 __hB'l.OO 1 3 1 1 .oo +.#o.oo 2 746,0.... 2 7 _ _1 .oo 7 7 2,283 9 1 8 .oo 2 4 00
PAGE 246
STATISTICS C BWDber ot Rl!port Rec 1Y d...!To tal • • • • ..!.!.ea Paid.& etropol1 N Other Ci t1ee To tal • • • • York •••• 152,229 •••••• ••••••• --.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 Trimmers . . . . . . . . . . . . . Lac era . . . . . . . . . . Hanu Sewers . . . Past era . . . . . . . . :>tone :.>etters • . Sample Total . . . . . . . . 11. 1,)26 .h3ll. 4,717 44.755 112,659 157r414 :as .988 41 ,871_ _]6,859 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 ... 18. t 31 1.432 1,!)16 .h!Z2 3 I 411 .l.t_3_66 4t91 1 4,927 4-;810 50,180 121.598 171.778 )2,!)26 a.;l't.,OYJ!;D. 122 4 E4• .Metropolitan New 114 4 132 210 43 343 2 1 125 2b3 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 UGUI, 1934o NwDber ot Reporte ::>u 1U ContraotoJ>•• 11 _j 13 120 -140 ).697 1,696 .1li. 2,052_ 127 1*-3o774 ----1.t..c !l
PAGE 248
.. .. ... ... MOI!f O Y roPQ1 •e• York Other C'1Ue• . . . . . . . . . . . l('IU Of. e tropo tan New ork Ot.lier C1 t1 ee • • .. • T Otal . . • . . . . . . . . . Pff ol. l • l'OJ>Ol n NeW Y o r • Other Cities . . . . . To t.al . . . . . . . Oil' 1,34. f?ropoll newark Other C1Ues . . . . . 'l'o '-1 . . . . . . . KOfiV O.F NO V.1!3ill.lilll 19 • e ropol!Wn New YDr • Cities. • • • • • Total . . . . . . . . if:l Oil I e ropo an ew Yor • Other C1Ues . . . . . Total . . . . . . . O.Ji: e ropo 1 n ork . Other Ci tiea . . To&al Gr&nd Total . . . . . . . . . . copx AYTHORITX LAl?IJ.;;.S' HAHPB'.g IIDpsfRX :>tAns pcs COMfiLEP FROM l'AXR9LL RhifoRT S Jux:IVlll> FR91 W"XBEHS UV Tmi lU•NDBAG BMQ.BIT lr Sybm1t-' JnUaber A"Yeras • JiUilDer NUIIIbet' A'Yerase Humber of Reporu BWDber of of H OUra of Repor'• Number o f at Houra Rtcehe!l. lll!p.plOYft!• 'iiOJ;ktde •ase a P aid. •ployeee • .,.orked. Wal .. Pa1de . . . . . • 111 1o466 167.330 106.807.00 1 9 550.00 . . • . 2 . • 4o S oJ74 24), -r= 5924 ::!, .oo . . • 2o391 390 ,b 10 261o,341.uv 14 138 21o 4 08 1o,o6g.oo . . . . 4104i 'l0J114, , 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 . . 4a23s J04,16i.oo 100 5:16zo.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 -..U..L Qa122 21 .uz1 376,<,19 .oo ______.) . . 7 ,tl)O 1ol42,)0J . '25o}J3oOO 16 o 9o079 ----. . . . . 103 1 341,&r1 233.005.00 12 93 14,405 /o451o00 __JU_ _6.a-w,-1t• 1 (J --m-40. t4ti 1(12.__ J!..!..J 1 1o4U _j Otj. IJ-1 -ur-55.53 24, J,oo ------96 1 ,6oo 20),616 11 72 9o16b 4,.J'// L2 41bbb 60f 1\ 1[2 10,,44.-00 lbl 1>,4b!J ' 1 2.22 -....,...,...244 31, 3 14,19rOO -----67 902 139o55!i 93 274 <.!1 117 17 o172 O,J71 . 1n 41 6 2lt .oo . . • 40), 1 .oo 14,1.oo ------. . .. . ... _ 6 ,uo :2 200 201,460
PAGE 250
STATIS TIC S JURE }0, 19}4. pHI:BIT C. StAMART 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 Manufacturer• Only ••..•.••.•.••••......•..•••••••••..•.••..•......•.•......•...• , Manufacturing Jobbere Only., •••••...•..•••....•••••••..••••.•••..•••.••..•.••..•• 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 dozen1rholeasle ...................................... . I $30.01 to $37 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 Total 1934 •••• ••••• .. • • • • • • • • • • • • • • • • • • • • • • • • • • Total. 170 14 23 • 3 210 22!3 20!3 20 22!3 327 29 96 92 112 94 E7 12,396,24o 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 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 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 21128 ...5L ti,912 T JJ9: _a ATerage lumber of :laaplo;reea, per :ractoey ••.••••.•••••••• , , 41 21 87 42 9811 South-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 20,534 206,932 355.100 195.563 398.307 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 }.) }-\ .......
PAGE 252
811 -222-E X H I B I T G Brief pre-pared by A. M i ttentha1, former Code Director
PAGE 254
-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 competition based on unequal labor ,and competition b o sed_ u:r_Jon unfair tracl_e practices. The labor problems were the. 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 beganin the year 1929, and continued increasingly 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 manufacturer moved aTiay from the 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 to employ workers without any previous experience in industrY'. Machinery heretofore little used in the industry, was invented to take the pce of many of the operations performed by skille'd uorkers in the Nei7 York factories. Workers in these nert localities were paid $6.00 or $7.00 a week , and "ITorked from 48 to 54 hours a 11eek. With +,his tremendous in labor costs, those manufacturing outside of New York, nere able to giv8 greater values or sell for less, 'i7i th the result tha. t the operating 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. 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 11ere scattered throughout the country , chiely on the Pacific Coast . The Union was unable to 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 • . At the time the code was being drafted, the 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; general 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 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 according to their ' 9811
PAGE 255
-224skill, and the operations performed, at nage scales ap3)roximating those tha were being paid in Union factories. Those manufe .cturers not Unionized, fou. to prevent the classification of the tro r lcers and t h e establishing of Tiage scales in the code above the minimum of $14.00, claiming that their uork ers uere not skilled, that the.' system o f r rork employed in their factories, known a s the 11 section system11 (not permitted in a Union factory)-did not require any skill; that nev; machinery und nm7 methods revolutionized the manufacturing of ladies1 handbags, particularly in factories making low price bags of clo.th, (imitation leather) 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 associations formed_ by the opposfng interests, and legal advice was employed by each to prevent the unfavorable action by the other. The final alJproval of the cod. e \7as not the result of a compromise between the f actions on t h e metters at issue, but'because the Divisional Administrator had ruled a gainst the inclusion in the code of any classification of the workers, or a n y -;1age s c a l e s above the minimum. Later this Tias modified to allon one additional wage scale above the minimum for semi skillEd uorkers. However, in the order approving the code, this provi sian was stayed, until the 11semi-ski;Lled11 could b e defined b J r the industry The conflict bet1:reen the fa.ctions continued after the approval of the code when attempts were made to define the term ttsemi-s.killed .. 11 A number of hearings ner e held in New York in Washington, and attempts made to .com prom1se the matter. The .Union rTa s active in. to have the orcter stay ing Sections 2 and 6 of Article IV vacated, _ (these sections related to the establishment of the r ate above the minimum . for semi-skilled workers, and the provision for the classification 'of YWrkers more skilled). The out siC !Illl1ufacturers, thru . . Code t;;r, voted to have these t11o sections de leted from t 1 .le code. In Se p tember 1934, t h e Union, unable to effect a neu agreement 11ith those manufacturers still remaining in the metropolitan area of Neu York, called a strike. T h e strike l asted about five rreeks. In the interval, m d manufacturers moved anay from NeTI Yoi,"k to . . o:utside locations • . About 80% of the industry VIas then located outside of New York. Some of these manufac rers who moved a way 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 h ard 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 The President's a greement issued 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 manufacturer s adopted the 40 hour Tieek at once. Union agreement made . the 40 hour week aut9matic in factories in Ner.r York. About 60% of the industr.f outside of : J e\7 York r aised the minimum 11ages to $12.00. factories nere not affec-ted. They did not employ any 11ork'S lower than $14.00 a neek. .At the time t h e code for t h e industry Has the wag e scale s in t h e ind.ustry resembled some'Rha . t a toboggan slide, goir from 75 a rreek (the minimum demanded b y the Union for skilled r10rker! do v m to $6 00 a neek paid in some outside f actories. The code made a mir mum of $14.00 a neek mandatory. ,A..bout of tl1e manufacturers complied j!" edie.tely. The 20% who did not eX; m p l y , could be classified into three grc;s: 9811
PAGE 256
225 vhose \7ho sought temporary advantages, e}.7ecting it would tak e time before ihey could be investigated. ' The ise manufacturers paid restitution, and com )lieo. full:r thereafter. Another class, resorted 'to falsification of records to hide non-com)liance. too eventually paid restitution, but had to be policed closely. third class,. those who used the 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 the Compliance Board in Vlashington. i'ortunatel y , this Has the smallest class, not more than 2% of the industry. ;nere are some interesting records of these c ases in the dep artment 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 b y hand. This Tiork wa s done in the homes. fue . prices paid for the work were so l o w , these children wete compelled to 1ork frequently until midnight. Under the code, child labor .in this branch f the industry was stopped, and the Tiork nas out of 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 v 10rk into the fac 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 homeworkers Pere raised from about 7 anhour 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 ov e rhead er_pense that could not be readjusted quick l y . A fe11 manufacturers, because of the necessity for their naintaining a larg e sales volume, entered into agreements nith some larg e etailers to: give them rebates on their purchases, in consideration for phich such retailers l)romised these manufa.cturers that they would make them ;:>referred resources. The of rebating grew ra;_pidly 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 t11enty different me.terials, 9.nd requires about thirty main operations 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 standards of value are set so high by these manufacturers, being ignorant 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 argest manufacturers in the industry Pho are responsible for this ruinous competition. Their practices aving resulted in financial readjustments of their businesses at v arious times. Some manufqcturer s engaged in unfair trade practices, such as selling on consignment, o r o n a guaranteed sale, paying for retailers' advertising, giving rebates, and granting eAcessive terms of sale. Because of these unfait 1trade practices, small manufacturers, and those v:hq tried to fallon sane 8 11
PAGE 257
-226.A. .... -... business principles, were restrained from selling some of largest dis tributors of ladies' handbags in the country • . Pre.vi ous to the cpde , the discount allowed purchasers for the. prompt payment of their invoices was not observed to great extent, payments . being made long after the clue date with the f ull amount of discount 1.eriu.ct .. Fe w , 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 promptly on the due date. When the cod prohibited the granting of eli scdunt s in e xcess of 3/10 eom, the manufactur 8 records show that fully 8')% of their customers paid promptly on the due d., in order that 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 reason for the industry failing to show a proiit for tl first four years of de pression, v:ras due perhap s more than anything el1 to the granting of discount and t e rms whoJ..ly unwarranted. The industry Garned not more than 1 % in discounts and 8%. More t han 50% of thf manufacturer's cost 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 tra de practice rules in the code, 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 for compliance under the was the label. The Oboper ation given by the retailers in' -refusing to accept any product of ind .. try wi t.I+out the label, had the effect of restraining the manufacturers fr violating the code. In t h e year 1934, the first year of the operation of the code, the handbag manufacturers reported profits, most of the reporti their firs t 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 greater 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 retails reporte d 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 operating 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 were left to the Directors of the Code Auth i ty to take c are 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 was little or no further'opposition. The industry had no difficult• in financing code administration • . Labels were sold at .$2.50 a thousand alike to all manufacturers. The amount paid by a manufacturer for labels. 9811
PAGE 258
month uas credited against his as-sessmen t based on 1/3 of l ; b of the olume of sale. s eac h month. Adjustments nere made Tii th the manufacturers t end of each month. The nas equitable to all manufacturers, ,nd operated perfectly. Assessments uere collected each month and com lliance on assessments r:a s had almost one hundred per cent. At the end of he first fiscal year, the Coc1e Authority h a d a surplus of $41,000 of arnou.11t $30,000 Fas returned to the members on a basis of the amount contributed. For the folloning y eB.r, the rate vras reduced to i;of 1%. The Tiork of administering t h e code v.ras divided b e tneen t11o Directors nd an Executive SecretCJ.ry. One Director had charg e of the l abor provi sons, the other Director of trade p r actices and p lanning 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 uas p lanned so that all of the 11ork 11as thoroughly coordinated. greatest difficulty encountered in securing com pliance nas due to h e overlapping of our code 11ith industries Tiho made handbags in addition to ther products, 11hich came u_n.der other codes. They competed strongly with h e manufacturers 11ho made handbags exclusively. An importa.n.t ruling on his matter uas made b y 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 were declared invalid. We also found diffculty in enforcement, because a branch of the making the very cheapst grade of handbags had b e e n alloTied to become a division of the luggage ode. Thi.s bre.nch of the industrY seriously interfered ui th the manufactur rs making lov.r price goods under our code, because labor conditions were ore favorable under the luggage code, 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 i7ould not be divided into codes according to price goods. Th e transfer of this group from the uggage code to the 1adies1 handbag code , had just been accomplished when ho codes were declared invalid. Under l abor comp lia.YJ.ce, our c hief difficulties 11ere encountered with nly a fer.r manufacturers \lho trie d to
PAGE 259
-228disturbing elements in the industr,y. After a -short time under the code, the mamuacturers realized that this VTa s being accqmp;Li shed, and they read f _ell' in line. It wo: s admitt-ed by the manufacturer:s the code had re sul 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 agreement to perpetuate these benefits. This voluntary agreement is non in effect in the industry. The features of the NRA administration were the delays in gettir ac"tion from the administration on 'important conf:J;"onting the indus , After: a hearing in 'Viashington, it sometimes t.ook months befo.re an amendmer would be passed by all of: the boards and a-pproved bJr the a
PAGE 260
-229-. . the beginning of the code, acout 40% of the manufacturers thought Ghey were entitled to 1atGr, few 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 located in the submitted lega. l arguments briefs for an exceution to the provisions, which the Code 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 general, it '"'as found that every :r1anufacturer located his fB.ctory ln a uarticular section of the country because he felt it an advantage :or him to o.o so, and that he; fully compensated for any Cl.isadvantages 'or he claimed exceutlons or ,
PAGE 261
2 3 0 --. Brief on 9811
PAGE 262
Prior to the yerr the 1 w .nufetcturers of 1C1dies 1 h0nd"Jc::.es h c .O.., for nore fifty sold their goods on of 2/10/60 oD 3/lO/eom. From 1930 u : __ J to ! ic-rch 2o, 1934 , t h e ti1e the c o d e for the industry becc>..:"le effective, the i::.1 t h e L"'..dustr : r v e .ried .ro:.1 3)b to The code fixed the ,.1a:.;:ir1u i 1 terns for the L1du3tr:r e . t not in excess of 3/10/uom. These '7ere by :--11 retr-tilers-throU{;hout the country. Since liay 27, 1935, -.'}fei l 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 larg e r etailers end chc-i 'l stores hr-.ve deqrJ.ded th."l.t the uanufactu:rers. fi:c the di sco;,n t c-.t 8/10/eom. In the ye['<. r l92S, the s:-.les vohme for the nnounted to about 70 cloll< ; r s . Using the 1929 ::i;;ure s e . s a bf'.-sis, the vo1urne for the yec.•r 1930 decreA.sed n.-nro:::lmt .tely 40)o in 1931' so;a in 1932, in 1933, und about in 1S34. :rhis slun:.) in sales volu:ne presentecL a very serious si tuatio to who hP-.d_ an overhec:.d ex.Jense bo..sec on lr,_r g e S l' les voluiJe . It vms impossible for them to readjust the overhea d to the ra_JiC:. Cl.ecrease in their s;:o.les. A feT1 .w.nufactur e r s , bec<:mse of the necessi for their i '1C.into.in4;ng sales volume , entered L1to P . n at;ree::rent ,,i th SO;-Je larc;e retailers to give then P rebate on i n consideretion Tihich these n e r e promised 1by such thc..t they 1.70uld be r1e.de : oreferred sources. :rhe few I!lC:?,:Tu.facturers -ho at;-reed to this arrangenel1t, ex)ected thru this ueans to the "business ar:ay fron coopeti tors. who ITere not favoreG. such retailers. The Jrouosi tion of re bati:lg havLlt ; been acce;Jted b y E f e':!; 18llU:Lncturers, the retailers continued to offer the tio: 1 to other r'JBl1Y 1Vho: 1 having alreadf :fou...'1d ves Ul1o.ble to o b tain a.r.y business fron these retailers, did not to a cce) t their Those ':iTho acce"_)tecl late, \; e:re required to Jfl. y E'. ln.r.-;er r eoo.te. It \las not long oefore the uanufac turers rrc:re co: on the ar :wun t of rebate they '70ulcl Give. This .rebe.te finally s:.J. By this tine, the nere from so oany L1enufacturers 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 the discount be ca!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 business ' .7ith these retnilers, the result beiilg that certp..in l a r g e retailers o .nd store s rrere receivin{ ; a discount of w ; , nhile S!JO.ll retailers co--ltinued to receive Iro; 1 the SC!ne -J8nufactu.rers onl ;r the cash discount. 1Ji thin t l1e lJas t ten years, retcilers h
PAGE 263
-232-their lines to corres:?onC'. rri th the stnada rcl retail :_Jrices, thr. t n ould ve the :re tr-.iler r . Jercen t;"l • : e o f Jrofi t suff icie11 t to cover t h e te conditions, t h e retf'.ilc r is no,r concessions in )rice , extrC'. discounts , n.nd adU.ed. services. Th e 3;s discount c .llo,:e b : . r the nrmufn.cturers i s a cash disCOl...lilt , a:.1d i s offered c>. s nn inltuce : 1ent for the p rom p t paynent of the invoice or. the due d a t e , nhicl".:. i n t h i s cn.se i s on the tenth da:r of the r.1onth foll o • rint; the clr'.t e of shi-.Jnent . In C'l.ntici)ation of of the : 1 a j or 1ortion of their accounts j:'ecei vable on the tenth. of each 11onth, it is the custo: ! for the T ,1f'..nufacturers i n the industry to arran, ; e ter:1s " i t : 1 thei r s ources o:f su: nlies tha t 'ill enable the .. 1 to their current of the f i fteenth d n 3 r of each month. This arrcmc;enent e.lloyrs the I . wnufact-u:rers five cta_ys for the recei:1t of their funds. Sin c e t h e c a s h discount the 7.w .. nufacturer is allon.ed de-Jeni u t )On the :12Jment o f h i s -Jills on the fifteei1th of the :.1onth, 9811
PAGE 264
-233-TlDnui'pctu r e r s , t!l.e snall : 1811 u.'actu.rers ,.,.i t h lim ited :" 1i trl 1 . . P:1t.l i t h little Ol' ni th D Or!'O P ing )8-Ci t y 1 a.re to llo-t:1e 3 , ; iiscohnt i n order to collect the-ir outs t 2:10.L1g P .ccounts > rom .Jtl y , .0':'1d enc:t0le then to IJaintC?.in t l eil o :n credit C1.nd t o ef1rn ;he c::sh cii s c oLmt RllorJ_)d then for '"Y:'1ent on t h e due drt e . :rhe wovis ion of t h e cocle )rohil)i tin::; the r::i v ing, o f t e rns in o f 3/10 eon as a lso i ntel(.eC. to ) r e ve:1.t lD.r::;e r:1anufe .cturers rho \1ere ""'i:nr-.!1cially, r ,bJe, fron e ; 1d of the nonth' de.tL1s o n 2.11 .hi menk 1."d.e on the :fte:r the t,7enty-:t..ifth of t h e nreviou s y tbis of 1;rantin1:_: lo:r.. :er cl.r .. t i 1ese lo.!'ge manuf".cture r s hnd n Pdv<'1 t e._ .. :e co.1.lC. -.,e used s no .ll :1PnUff'.ctu..rer with iJnted nho OU}.d be to O_)erate i f he hc--,,d to g r o . n t :1e 30 dP..JS on shi :oents nnd..e 2fter the t ,-ent;y-fifth of the :onth. It :culncirl1y F". ble to g ret;.'lt J;er:Js beyonC.. the tenth of the 0'1th, ITi thou t seriously the i , . ability to i '1 business. rior to the code , the mnuff'.cturers nerc lnx in -,er:1i tting delinquents o deduct the c r s ll discomt c:>.fter the due dE1.te of the Lwoice. lTot nore han 40% o f C'.ccounts receiv: 1Jl 8 n ere --)rOT'l,Y:)t l y o n the Liue date, the tenth of the non th. ) Th e code rule required ts from he retPile:: to e.nti tle hi:rn to decl:u.ct Cf-l.sh d.isc01mt. The a.cturer::; c t th[. t t ti:1e thrt f'.,S ,.,_ results of t -his code rule, ore than o f thei r acc:IDun ts receiva-ble uerc r Jror.ntly on the enth day of ea.ch m onth. I n c alcul 0 .ting costs, the mD..nufacturer does not include the Dsh discount in the cost of t h e article. The cr,sh discount i s figured s a deduction from inco:'le._ discount could not be consiC..ered a th12.te cash discoun t . The extrR 5> deoanded "Jy the r e tc.iler is efini a tr;:de discount. and i t r.mst be included in the cost. In e:. 1c.ndin g P n extra 5;6 discount, t h e r et0. i ler i s rer. lly chiselling on CJ.e urice. I f thi s i:J is desired, he try to cet re llction frorr1 in6.i : w .nufacturer s , s ince urices are not fixed in he .'\ n d each :rJanufa.cturer is at to c..n y on cessions to Pny buyer f o r any reason he thinks warrnnts such con• l ess1ons. I t o i ght require the retailer to b ? _ r gain individ u ally 17i th 3.C h manufacturer for -.Jrices, rmd f o r tha t reason he u refers to force . -311
PAGE 265
-234-the g rnnti ,-,_,:; of c tisco1:nt on the enti:ce i jH.l_-astry. It i s certain t h<:"' t i f t:J.e ' 1C'.nufacturers L' . . : ;reG to al_lo,.., the eLi SC0Ul1 t, the G Jo.ll :1:-'111.Ji'Cl.ctui.'Gr : 3 ri:tl be restraL1ed fro 1 cloi"::._ ; , _ .,i th such retailers "llilless t.::1ey clso a c ree to -;rc:1.nt then the d.iscowJ.t. Th e ec.rn o n the . ._e, disco1.m-'us of onl7 1 o:..1 their vohu , ie . tlheh . they alloTI 3;h for :_)rOE1;Jt 1 .-:i thL1 an 30 clays, it i s rllo-rin .:; t:1e retnile i' C1. t the rrte of 35;; a :rear. Ii1 Tlin.r; e. cash discom1t o f :fro:"! the the retailer is <:'. sl:inL; 8 rE'.te of t.\ yeer for pro n :_)t lJr:,Yi'lent. The discount of 3;; g r nnted the industr,r is CJ: cash cl..iscou11t, a nci_ e . C<:"'.sh is D. deduction o:,.n the sellinG )rice, anc t it :Jeco n e s ll. trade discount, Ellld because it i s a tro .de G.i sconut, it i s c:: 1 elene;.1t of Jrice. It h2. s :'lever been the custom in the l r. cli e s 1 i ndustry t hru its entire existe"1c e to ever c1.llo,-; trpcle discom1ts. Sone l"e tcl.ilers il1 denal1dL1c; this trade o.i scoun t o f ::;i ve a . s thei t t tl ,....-, . . . . 11 Cls I o--u rec:. s o n .n:• 1e e : ;:trt:' . -o,o CJ..lSCOl.::w.J.t lS requlrect <'. S a J _ __, or a 11HIJJK; , t o insure the:1 L'. )rofi t, •-::he1 1 rnc.1. if, t h e y fail to ep.r;.1 a net t on <' normal u J , :hich the:r o.dc:J. to the wholesale cost o:c' the to the consu . :er is fi::ed. In othe r ,..ords , t;> , e :r denr.:1 c"'c t h<"t the !:a:nufacturer su.bsid.ize L 1e:1 for selling hE'..:.!dba-?;So :rhe '1c .nufn.cturers cannot llilderstond '-rhy the:r should be w . d e to S 'tJ.bsi d !bze the retailer just bCC[l. USe they :1['V8 usecl all of their i : v;enui c-n6. ris:: ecl P.l J o f their c2ni t a l t o construct the o f handbC'.c;s thL't t h e retl'iler :-ms t hB.ve to sel1 the collSUJ.ler. The :cecords sh0'7 t h<' t the o f h[)ncl"ur :;s rarely lJ< a -_Jrofi t o f 5 ; ; on their snles. the retnile r de H'ncl s the e:.::trn discount, the r-1nnu.facturer is Cbr:TDeJ.led. to soe other T1eans of for this additional to. Give it out of his profits out his entire If he includes :Ehe 5 into :1is costs, he '7ill 'ue n.r;r'.L1st t h e srw.n . .:md retailers, ,ho:-. 1 h e sell s at the discount, ho , _ ,iJ.l 'be )eyinc hir.1 an extra profit of 5% th2. t he b.qs ac1decl t o costs, but ho. s given JC1, cl>.: to the larc e retailer. :3efo:ce t h e cocle , the 1L'.nuf;:cturers too frequently cranted the extrc-. 5 > cliscoun t t o the retr: iler, a t tb e e:nense of tl1e salesnrm, r,rho was c:J. Sl(ed to c:;ive U}_.) cJrrt of his cO'l!1ission, end at the ex)ense of his 1:70rLers, r;ho were :tequired to ' rorl:: for less v7aces , or acce:ot a lo'.7er r:-te under of havL1. r ; the frctory closed dOITl1, becL'.use o i ' L1Clbili 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 conbined purchasi_ n g poTVer hr'n d"uag s eo__uc-1 to about one-third of the total output of the inclustry. The :1enbers of this 3..SSociEJ.tion nre refusing to fro, those manufacturers r-h o \7ill not 0rnnt t h e u e1e B > discount. If t h e L1clustr: r is unHole t o ile.intain rt cash discount for nembers of t h e industry, the trade practice rules Tiill becone ineffective 2.nd unenforceab l e since no nonufFJ .ctuer ''.'ho has assented to t hL, e.;'5ree 1 1en t could long , . , i thstnnd the refusal of retoilers to fro.-1 hi:.1 L>ecm1se he refuses to sell on terms in excess of 9811
PAGE 266
-235>/10/ eor1, while other '1Mu:fc\cturers P.ho h ave not assented to the are doinc so. If the ind.ustr; , thru its voluntar= r agree:1ent, cannot establish md enforce n axioUJn terms of sale for aLl_ nembers of the indus try, tion •ill 0e based !'1.gain on the lO':'Jest labor costs , resul tine; . n the com ylete break d.oH n of the miniiJU11 1 7ages and : 1axir.mn hours and lrohioi tion a ue.inst chilcl labor rules established for the 311
PAGE 267
236 -. E X H I B I T " J " -------L ette r outlining policy respecting Classification i I 981 1
PAGE 268
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 interpretation of the policy of this Administration 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 two o r three basing rates. Such basing rates are to be in n o way confused with the so-called It classified" rates. The term "basic rates" may best be e:lq)lained by an examp l e . there exists a clear, well-defined and logical separation of employ ees in an industry into t w o or t h ree groups, a basic wage may be set for each group. Thus, in the steel industry, for example, ther e is a very sharp line of demarcation skilled and uns killed labor. If you will remember, in our conference last Friday, I suggested that it might be possible to set one miniJTmm wage for manufacturing employees and. a another minimum for non-manufacturing employees. The difficulty of such a proposal became at once apnarent, however. Someone else, Wald.Qan I believe, suggested that the line be drawn according to s1d' 1 or length of time employ ed. The terr.1 11sY:illed11, ho""ever, is one very difficult to define and the length of service is b y 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. Thv r a does not exist in this industry any such clear separation of emnloyeeB into groups as there does, for instance, in the steel industry. Shou l 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 mi ht bs d efined 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 for manufacturing employees, except for t hose employees as are included in the above group. I think such a plan might be workablJ. I hope that I have clearly set forth the policy of the in this matter. I urge you to complete the negotiations on this code as quickly as possible. I should like to set a date for 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
PAGE 269
-23 8 K H .. !_ . K on definition of Semi-Skiiled 9 , 811
PAGE 270
239 K CODE AU':!iO' I'IY (-Articl e I V , a raer aph 2) The Committee met on Saturday , Apr i 1 21 fro m 10 to 2 .c-• The Committee met o n _p ril 28th, from 9 : 30 to 3 F . J T he Committee met o n April 30th, from 10 . I.'. to 4 F .. The last t u o m e etings were attende d by the Administration member. The following is the f inal report o f tha Commit A. The Definition o f S emi-Skilled in C u tting. ' :,P . ( 1) All oper ations , excepting . rubber cloth cutting are to be consi d e red semi-skill ed . The following embers of the are in f avor of this definitio n . I. Scho enho 1 z Chas. 'olf S. Maksi k A. Greenbaum (2) The following m e m b e r s voted agRinst tle above and pro ose tne following : J . 1 i an R . Burst ein S. Golds ith The only employees in t h e Cutting Department that shall have the rating of semi s k i l led shall be empl oyees engaged in the cuttin5 of outsides, ith the exceptions o f handles, handle linings, pullers, puller linings and gussetts that a r e cut by clickers. lso an, employees eng a ged in the cutting o f silk linings b' knife are semi-skilled. ( 3) M r . Lubline r objects to the b-10 foregoinf definitions and offers the following: All employees engaged in cutting shall b e consid red semi-skilled workers . ARTICLE B . The Definition of Semi-Skilled in .-1 (l) All outside operating shall be considered semi -skilled exce t h andles. Lini n g s as the Code provides. The follo• in6 recommend this definition: 9 811
PAGE 271
-240I. Schoenholz Chas. Wolf S. Maksik A. Greenbaum ( 2 ) T h e onlJ' e!nploye e s engaged in the Operating Department that shall be rateo r.s semi-skilled workers are those v • ho are engaged in welde 0 bottoms and gussetts, pocketbook gussetts, sewing leather and lining together, without a gauge on outsides. The following propose this d efinition: 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 inverte d or inner-grip frame or w ho participate in framing of covered frames, full inln;v frames or shell frames. This does n o t include the inside pockets of any of the above frames. Also purse framers shall not be rated as semi-skilled workers. J. M argo lin H. Burstein S. Goldsmith (0) Mr. Lubliner objects to the foregoing definitions and offers the following : All e ployees en gaged in framing shall be considered semi-skilled o rker s . 9 81 1
PAGE 272
A.:.TI CL:::; :J. Definition of Seni-S!::illed in Pn.:rin.7 . (also lmonn as Sdving ) (1) All e11_r;a.:;ed in (::1e ning sorwtines lis _ i shall be considered seL1i-s)dlled. ro S choenholz Che.s . S . : :ak:s i'-c A. G reenbau.1 P. Lubliner (2) A semi-skilled is one rrh o can par e e .ll t ;rpes o ... rork and ITho lli1derstand.s the parinr: n achine so e.s to be able to r.ml,.e necessary changes of gauge, :::nife and emery \7heel. J . : :m,golin E . Jurstein S . Gol d.sl"1i th ARTICL:0. Definition o f Ser1i-Skilled in I
PAGE 273
-242-(2) The fo11o,ing vote for nine nonths: J. l ra:i.' I: • 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 committee. I. Schoenho1z Cl1airman o f the Committee 9811
PAGE 274
Dr. Earl Dean Howard Deputy Commerce 3ldg. Washington, D. C. Dear Dr. Howard:--243CODE AUTHORITY LADIES 1 H.AlJDBAG INDUST::tY 303 Fifth Avenue New Yor k May lst, 1934 I am enclosing a report of the f indings of the Committee on the Definition of semi-skilled workers; also a copy of the verbatim report dictated by Dr. Paul Abelson, who was present at thi s last From the report of the vote, it must be evident t o that the same division of interests dominated these meetings the out-of-town against 'Ne Yor k -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 manufacturers to minimize the class of unskilled workers to a point where it would be I pointed out to the Committ-ee that very little was required to be added to the exemptions already stated 'in the Code i n order to give them the Definition of a Semi-Skilled Worker. I regret that the Definitions that were adopted, even by the majority, are lengthy 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 operations of the workers. However, these Definitions a r e the best that could be obtained under the existing conditions. (Signed) A. Mittenthal/TD 9811 Yours v e r • truly , A. Mittenthal Code Di r ector Ladies' Handbag Industry
PAGE 275
-244-CODE AUTHORITY LADIES' HAN D BAG 303 FIFTH AVENUE NEW YORK May lst, 1934. A final meGting of the Committee appointed b y 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 Com mittee present wer e : I. Schoenholz c. Wolf s. Maksik A. Gre enbaum J. Margolin H. Burstein s . Goldsmith .. Dr. Paul Abelson -Administration Member _Fhilip Lubliner-Labor M ember A. N.ittenthal Code Director The Committee by A vote of 4 to 3 adopted the following report defining a semi-skilleo worker. Those membeT s voting for the report wer e : I . .. Schoenho l z c. wo1 f S. Maksik A . Greenb aum Those members voting the report were: J. Margolin S. Burstein S. Goldsmith The minoritJ' report is herewith attached; also dissenting opinion of Philip Lubliner, Labor Member on the Committee. A . The Definition of Semi-Skilled in Cutting. All cutting operations, excepting the cutting of paper, wadding and rubber cloth are considered semi-skilled. 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 . 911
PAGE 276
-245LADI E S 1 ::.AITDJAG EJDUS 303 F IFTE AV:C'DJE heY 1 s t , 19 3L': TY :::EPORT A:.T ICL E A -tio:1 of S emi Sl:illed i n Cuttinr., o n l y i n the CuttinG :Ue:Jt . \;}J.C't have the rHtiY; se;i1i-sl:illeC::. e efl1 ployees engnc,ecl in the c u ttin.; of the outsic"..es, n i t'h e : c cel)tio1 1 o f hnnc:les, i1c. nc : l e lir:int.; s :"nd [:;ussetts tnc' t c:>. :re cut 07 clic_(er s . A lso an:r employees ent;<:>{;ed i:1 the cut tin.:; of sil k liningg b y rre s e mi-skillec • .A?.i' ICL::::; The Defin l t i o n o f Se!i1i -Skil lec1 in Operatint; J.li.'..e onl:' em"Jloyees er1;;r . .;:;ec1 . i n the OperatinG that s:i.:nll 0e ES semi -sldl l ec:. Yrorl;:e:ts o.re those vV}lO L .l'e en_:;a0ed in sewing welcl.eo_ b o ttor,1s c-.. nd .;_JUssetts , _;ussetts, sewint; leather gnd tobet,.er , e i Oil <'. :1ic;:1 or f lat .,1c-.c:1ine, sewin& f<.mc y stitchi n :; nit:wut " gau_; e on o u t s i c les • .A?.J:ICL E C ?.c.e Defin i tion of Ser_1i-S:,..i llec3. in F raL1i nt; Oi1l y ern:?loyee s in ti1e Fr.S se:11i -sL:illecl a r e those i'ho CD.ll f:t[l.me com-,letel y 8.i1 inverted or i:..1ne r -c;ri:r} f rc..:.1e or \ia.o in of cove reel frames' null inlay f renes sl1ell f rC'J,1es. This d.oes not i11cl uo . e the inside po s of c:>.rry of t:1e AlsCl purse framers shall not oe rated ns workers. ARTICLE D Th e D efin i t ion of S emi -Skilled in Pal'inr.; A se;-,,_i -skilled -->ar e r is one v1i.1o c n n ")E•.:te all types of work a nd. Yrho unde r StMd.S -)aring ma c h ine s o ns to a"ble to ma}:e the changes o f gau,;;e, knife Clllci eme r y wheel . ARTICLE E -The Definition of S e'mi-Skilled i1 Pocl:etbook ?1taking A se:-.lis k i l l e d nocket b ool: El[lke r is one who turns ia r>.rd e.ssembl es the bag. ARTICLE F T h e Coi'ilr.1i tte e a grees tl1.e.t n o :)e rson S !ln l l be considered o n [1.:-w o f t h e c . b ove oper o .tions unless he he.s been eJ:r-Jloyeci in r>)lJ' f o r a of nine m o n ths. 9 8 11
PAGE 277
246 F3PO::?:_ C? p::ILIP LUELilf.i!:R, L.Ai30E OF TEE CODE 0 SU3 cc Imn -..,., ....,J.O DEFI.-::: 111::E p_O:OVISIOl : S DE.AL-AlTD : ::::::r"J:r:::..!:. r Ti.3 .!: . 11 t,.c, , ...... ,..., . Ii.iG '!AGZS FOP. r E:t:: SEi.:I-SK ILL E D Ir. S1:!.bmittin6 my on the definition of the term of serai skillecl er.nloyees, I \"/e.nt to st<:1.te tha t Article IV, Paragraph 2, l')ro11Eo serai-skillecl e Lnloyee e'i1,5ac"Sed in tl:e cutting, framinG , arin.,J, ")Ocketbook-ma1.:i o . nd . ope:cera .tin[;, frDJninc c-nc'. T)C:.rint,; Rs skillec'. oper tions. It is true that there v:ere two clc:sses c>.GI eed upon, n first-class also a secono. -class which c:i fj_ ere11ti a t between e n c-.ccom•)li shed worker who could do everything, and a. v1or::er who could •_)erform or:ly certain '9arts of the operation. In tJ.1e case of pocketbook-m&:ing , a class of semi-skilled vvorkers was recoQli zeC., such as tl1e helpers who a::ce the direct e .ssis tc9.!1 ts to tne no cl:ethool-:: mokers, and. these helpers recei vecl a wat; e as high as $31.00 per rrec:-: , 2no. today they receive ;, 23.30 for 1:':0 hour_ s 1 work. e -;:novi sion in the cod e 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;etro')oli tan district of New Yo:ck Ci t J , where a system of section.:>1i zing rrork has been ins tall eel.. The workers in the out-of -town locali ties e.re orol"en i n to certain ope r ations o .nd vii t hin a very short period, after ueL1.:_, steadily engagecl in thHt "ll'.l"ticular operation, become very efficient Clnd will co m:1are most in speed co.nd efficiency on t ' at o:'"lf.r ::.ti o n with any sldlled worker . It ip for this reason that the ter.1 of seni-sLilled ern:1loyee is alloHeC::. in our code, and by excludinG ceraentin:;, ;astint; an:i lining the obvious intention of this provision of the code is to all vvorl'::ers , except those who are lli1sl:illed, wl10 2 re ent;abed in ti1e mc:king of '!JOCketbooks. The only question to be determined is: when is R worker coming into the trade as an ap;1rentice c:md: eng D .cec3. in pocketbook-_making, f ramint;, cuttin3 , opere.tinG or 2 .rinE;, to be consid.ered semi-skilled? Our t:tnswe r to t his question is tha t a maxLnurn of three months1 eX'Jerienc e is necessar;jr to be ret;.:-'rded ns n semi-skilled worker in the industr y vii t hin the meaning of the code. To define 11semi-skilled11, a s the committee defines it, is to nullify tHe intent of the ryrovision of the code anc1 to render the en".i1Cl o f the )revision im1)ossible. The clefi nitions contained in the reports of the majority and the .ninori ty of t h e comrni ttee are unsound as I shall presently show . 91
PAGE 278
First: Cutting: The definition of mnjori t-, excludinc; pa:.>er w.,_C:_c.in::; I'1J.iJ0er-cloth cutting fron tne se.ni-s:.:illed wovision is . -.; o !t;:.lufacture r ill tru'"'t P..:!Y lec. rner to cut o;ny mc-.terial s , ett1e1 it 0e outsides (that i . s l ee.t! er, sil:.:, etc), or linil1L>s , or w,:-.dding , U.'lless. ti1e c utter r:e.s since it r eCJ..uires ::novlled.;;e of 111-.t,...rials a_ld s l.:ill in 1J.n.ndlint; a sheC"r-cuttil1__; or clicldr::; macl:ine to d o ;ost of -c: e metnufucturers i n en cutters, even i!l t ' e out-of-town n XP.etS , t r y to .::;et vvorkers thc.t have ence in hru1 d l inc; machirl es. 'lhey {;et e i tl1er shoe-cutters, cutters bookbinderie s or ot ! e r one. it t;'_l;:es a very time for this k inC'. of v1orl:er to h i mself to tLe hand'ue.c.; line. If a should. v.n c tltocethe l' ine:A'"Perienced to c-.t -Gi." e 1.10.chine, h e rfill fine'" th ..... t it vvill t .... l:e time ai.1d ap)licatio:! "Jefol'e vrorlc e r will ' ) e nble to SC1.tisfe.ctorily even the above :-Jentione, _ i i terns, suc h c-. s 'o:Jer, wacld.ini; Md. :ru.bb e r cloth. Second: S:i.1e d.efir.i tion o f m i no:ci t;7 vii-.ich excluo.es ho.ndle lL_i::.t;s, 'Juller li _ i n;:;s 'il<3 . .::,ussets c:. r e cut b y clicke1 s , is a r3.efin.i tion thP..t Y loulc1 of tl.e c uttinc_; branc' o f in C:.us l;r' ' in t h e llilS killed. c utti:1t_:; brt.".i.1C h o f our is by all mo.nufacture:.s as oein:; t 0 .e folli1d.o.tion of a f actory . A cut te:t has to hc.ndle D. D.t c: . . hazarclcms clicking Llachine or shec.r-cuttinc:; and rrmst b e constc•11tly on t h e lookout to save "ncl econocize on tJ.1e I!lC.1.t eri0.ls. Definition of Opero.t i nt; : .AJ.w c:!.tter:1,,t to tpJ;::e the various Ol!el a tions in is, to my minC., r. evasion of the provision of the code. I f we are to cons icLer tLe d.efini tion o::: semi-skille d as -no ::,>osect , it vrot:.ld ITI8ke it im.:_)ossi'ule for u lc:.jori ty of the ope rc:•.to:c s to receive t b e benefit of tl:_e : : )el' hour. I n consi0.erin.;, t:1i s :"rovi sion of the Cocte, e.fter consic .erable debate, the only exclusion conceded. VT['. S linin.; If other operatinG was to b e excluded, it wa s stran.::;e tnc.t there should have been e , li• 1 i t a t ion on lining s ; and eve:t1 on l L:.in_;s 'Gl :ere are certain such ns ::.'Uffl e-pocket s , sevrir.._:; on of ] incs, etc. that are hit:)l l y sLi lled. Defi::.i tion of Fr.o.mi:It::: In its 2 .ttenmt to e,clude -ryurse frLU7lin._:; fror,1 i G woulc1 . "Jut 'Jn.Gf l'r•mi nt; , w:dc': is one of highest 2 nc'. most opere1.tions L1 our ir:clustry on t'1e lmtest level. ::o beE,inners Cro:r>osed defini tiOi.l c:s tencl.inc:;, to breal: d own t "i::e standards of a branch of the tb::.t '1as for ii1e,ny years been fairly "vvell Defini of Pocket'uookmak ing: defini tio;.1 of s on ?ocl:etooolc -r;:AJ_ing a s b y t :1e majority as rrell as the minority , is confusil1G "'nt , it will w2ke it a.l to;et1wr impossible to enforce co.1A semi-skilled. worker in pocketbool:: of the industry 9811
PAGE 279
-248-is essential l y t h e one tha:i; C01. n do turnin.;-in cir c>.ssBmbling , w hether OL1 siL:, or o . n y other l:ind of mHt crial. Sin c e the worl -of 1)0Cket'!jool:-nc:.kint; is s o that e v e r"Jr worker -'!erforminc .J.is p .::cticul " .:c < r'C is 2.110. efficien t , ther e is no reason to d e ;)rive tr: ase vro .. :l-:e:cs os.' t!1 e :cic;ht of ear n i n ;; c r hour. Unl ecs the definition of s e mi-sl.:illed i s ns s u;:;{;ested in m y report, there w ill ne no -?,c.equate Yv[>,{_;e -...,r o visio--1 to :':)Tevent unfair com;1eti tion . P h i l i p Lubliner 98 11
PAGE 280
-249COD:t: AU'i'EO?.I TY 303 FIFT:::: AV"t::ITIJE E::ZY. YOJ{K kiey 1 s t ' 1 9 3Ll C . The Definition of Semi...Skill eel in ..,r2.minf; All shall oe considered serai-skillec the framing of )Ul. ses not a t tnche\5. to fremes. D . The Definition of Semi-skilled in P2ring All errroloyees enba,sed in )e.rin{; shall be considered semi-skilled. Tlli s c.efini tion W[I , S nl so voted for b y p. Lubliner addition to the four Industry Tilembers c:>1rec:>,dy recorded. E . The Definition of Semi-Skilled in Poc}:etoool: i'.i.iking All erirployees ent;a,ged. :.n )ocketbook makinr; D .re consiCl.ered semi s'dlleC. turning in handles, tucks or loons and all table worl: on lining s . F . The Comrai ttee at;rees thv.t no T,lei..son shall be considered semiskillec. on Dny of the above operations unless he has been employed on anJ for a period. o f six !7lonths . 9811
PAGE 281
250 -?.ECOVE ... Y •:iay 3 , 1934 Rosen'ulatt F:rt0i.! : SUJJECT: Definition of ser.1i-slcilled in Ladies :SandbaG Code. ed hereto is the r e ')Ort of the Cormi1i ttee on the Definition of se'Jli-sl:illed v orker s in the Eandbat; In pursuance of t n e 2 . greement reach with Colonel Lea, } :r. T:IcGr.:1dy c?. ncl yourself, a drte will be set for hearing on Ii1 a s:-mch as t l1e question of representation Y.rill be presented as soar:. ns the minority members of the Cocl.e t y have forwarded sucl1 a resolution to us. I t:t.int . tl:e ela t e of hearing on the defini-tion shoul c be held open until He hav e both subjects to consider at the sc:tme time. 9811 Earl Dean Howard Earl DeM Eoward DeputJr Ac\Jnini strator
PAGE 282
-251CODE AUrr:r:O::ITY LiWIES 1 Il DUST::::Y : r . Ec:.rl Dean n OV/(:I,r d Deput:,. AcLmii1i strator Cor:rrnerce Bldg . "i ['.shi gton, D . C . Dear Dr. Hov12rd , 003 FIF:L'E AV:::ITIJE 17:2W YOPJ{ At a re;:,ula r r.1eetir....:; of t:".e Cod.e tv held. o n Lay 1 0 Definition of ups aGain uresented for consideration. At tl.e request o f the Code Authority !rlemlle: , Geor.:;e i.ieyers, the consic1.er['.tion of the JefL:i tion of the Semi-Skillec' .7orker \Ir-s 1Jos t p o?.1ec. until i:;' e n ext re5ular meetL1f; of the Cod.e Authorit y for the pur ;ose of civin.; our Administration i: r . O. IV. Pearson, 2.:: ty to become a cquainted with the industry and. to enable him. to stucly the purposes and t'1e effects of the pro posed o.efini tions that :.=>.re to be suomi ttec1 b y t!e hajori ty 2.;.1c. tJ.1e minority re,)orts of committee. Ai : i ttenthal/ edl Ver>J truly yours, A . . e:..1 tl:..al Code Directo1 E8nuba..:; Industry
PAGE 283
I 9811 NATIOl AL .... .. VlASr:IlT 101: , D . C . i r . James C. Worthy Room 4081 t;5 !Jew C ity DepElrtment of Com.;nerc e Build.inP;; H ashi;.1gton, D . C . De::..r !.ir . Worthy: 17th , 193 4 This is merel y to re:?ort on the matte r of the cl.ef i11i tion o f se;71is: :illed. in Ladies l:anc.be . .::.; Inductr;;,r. I have v isi teci. a numl>e : c fr' c tories her e in l-Tev;r York cl.u:cin_; t'::in v 7eek 81lc'. on .l:r .. ar1Cl. ;Jecmesday o f nex t I e r n 00 i n ' ; to ;et t.i me off t o vi si J.; s ome o u t o f tonn as I ['J.l tol. t : a t tf>e ::--rocesses i n t h e out-of-ton n factories arc "'OLleWilat from t hose in l iew Yol'k C i t y . I wi red you t h i s r :10rni G res::._) e c t inc.; b udGet, a co p y of whicl. I enclose. I a;n P e . loss to u nd.erstand what ha_nened to my -out I C<:'.nnot find any tre.ce of it here i 1 1 office, If ym_,_ desi1 e i t , I can erl,.1 . r :;e upon these tele,:Cr' as Y ;D.en I reach St:.tu rd.ay . Yours ver:,trul y , 0 . ':f. PEA:: SC)l\j i'.lliriBI2 0 ;p : DA."tt
PAGE 284
June 2 1 st, 1934:. ;.IL2 0:? L.A.-l O-: l.-3 s::: .I-SKILL2D r 0? :::<:: : L-:J S ':27.Y rhe , r .fte r Lc:wi n..:.; ::;.:;t in cor1ferer c e wi tr. tr.e renresentnti v e of er:: :loye r s 'co cla s if.,i define t : . e semi-sl:illec: workers i11 tl:1e hP..V? 0i ven ch.:.e to t . e subject matte:r oefore them. Our conclusions, on lil::> .. :n;. i n the indus tr:r, me p , s follou s : Jefinition of CuttinG All c uttinc; oper2 .tions ;;.re sl:il] . erl c:.( s emi -skillP( ODP r ... tions. Fo,u ts.l. , . .L. • , . • ' t . ' ' OU v r'JiC .ll1.::_ !,l llUI "l.C v 0 1 "C1l8 lllCcUS ry [' r_: . : eec. 1 ; . C\. ::'reviOUS discussion o 1 tl"..e sn.r.1e to t.re follov!ill' : L J 11 All cu.ttinc.; e:;:::ce )tine "l<''ler , and clot::.. c u.ttin{:;, r .:e to Je c onsicl.ereC.. semi-sldllerl .11 The follonL:r: co:;:;.:li t tee :1n.v e s i:.:;ned t!.1cir n a:i1cs to t h i s definition: I. Sc: oenhol t z, c:1ns. Wolf , S . : r-nd A . Gl'Cel bo.um. ]e dis1ute the exce.)tions to p8.!)er vtaJ.Cl.in,:; c:>.ncl rubber cloth cuttia._,, <'.ncl asl.: tJ.:at they "ue includec: ;:1,s sl-:illed ancl semi-skilled Definition of All Oi)e r vtint; on v1or:.:, linings, hf'ndles, pullers, etc., must oe consio.ered skilleo. or ope r>.tions. 'lne four above :nentioaeci er.lj_)loyers 1lcWe .:;one on record vd t h t ' e Coc,e Autno::.it;:r :or t Lndies' .C:2ndb2." L vlu.stry on question of definil'1b the oper2.tior-s i:1 the "JrC).nch of tl e traci.c DS follons: 11 AJ.l outside s be consid e :cccl scr1i -skilled __. ezc e::' t ::cncl l e s . 11 1he undersi&:;ned : rerresent2.tivez o-f labor, cannot mc;):e it too em:;>hatic t:1at operc:.tors on hr v e c>.lvrc-ys been COilSidercc1 i n the [e\7 Yor:.: raarket on an equal pr,;: with e-ll other opcrntor , bccnus on ! lo . .ndles s }:ill , c."oili l:nor1 l ec'ge anC: e:,:pe:icnce. is one of the most parts o f the enti e b>.g. "/o . .1en will :.'irst c1etect operating on handles . le ['.Sk tl..'l.t OT)er .... t-ors on ! <'l1c:les J e treated on an equal pe. r v1i tl o1 l o ther O) e r"l,tors. The same must be s aid a b out Definition of OD Our G.efini tion for l a oor .:1.s fc. r <'..S f ro; .._ is is <'.s follows: All fr N .lii<{; s 1 e.ll be s .:iller c.Jl L scmis • .::illcc1 •
PAGE 285
-254t.._ f "r:'>. J., ,{ _ l ve ct"U..re::t> con of A co. t .1 vee o v • .,.__ , lt c ... 1• .. . . ,si,_ c'"J J1l. s . S.i."'ee .. on fl _)revious I . ;:,c • . o e n .. 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._, te con sic' e::..p c sc-ni-s: .:illec exc eT>tint; rll .. mrses :i.lot r t-c ..... cJ.1Ac1. to f r a Jes .11 1.::: {efil i tior: ln'uo:c 011 ser:ti -skillec' 011e1' tio::"t s i n '"00cketbook: "l.,lcin"' is: All i:J. Joc::et oool:-:-J.:-::iYlg <'.re to o e co::sic:erec. sl:il2.e . e .:1cl J:l:l e aoove li1e.ntioi1ecl. fm_,_:t en l0yers defL1ed semi-skilled i"l e ..... ') l'['ll1C."I. of the trr .c-;.e e . s follows: 11 A2.1 em)loyees en::;c> i n _:>oc::et'Jooki1r-2:inc e.re to Je consic1.erecl. semis ::.iller , e:-:ce.1t turnL:..::, in 1dles, tucl: s or am1 e.2.1 te. o l e ':.'or]: on 1 ini:1c:;s •11 :.o ::1".0\T fro111 our own rnd. t:::.P in the City of Few l . e.vc always concec \ed tC..2.t turnint_; in :1.:.nclles, t-c..cks or loo _..,s, also k. l c worl:: on linin_ss, r;.e ope rc.tions v:hich for ye<'rs hcwe oeen ')f'l' :'o r::;:ec' sl:':illec. '"00Cl".':et1)0CJk . <'nc:t classified 1 e lners ( cl<'..ssi fi eC:. }le l .. "lcrs J.J..:-we o.lH2ys :cecei ved anG.. a:L'B recei vin(; today ['. mini mum ' ' ... e of no less tl-:.:.l1 y23. 3 1 n3r vveeL:). Delini tion on Pe.r; Yl_f; Our c'efir:ition for on ti:e 'J.:•ring oranch o f industr1 is C!'I, S follorrs. All e,.,,,l o,rpoce11 . , eel 1 1 1 ""'".J.'l. ;1 sl v; 11snli ttinry or t l .. , v u';-r " -b t _.._ -'-o t _.._ D ed.:;L1 _ ; , 2-Te ;;Liller ' . to so: -tie le.:1.st, semi-sLil2.ed operations. I . Sc:J.oenholtz, c:10.s . :"iolf , S. .:a:.:sil:: <:>.nd A . G1eenbau m , fo_.r of o-c:.tst l!1['.nufacb.::.rers of our in.(ustrJ, have actually agree' to t1 is d.efinitio:;.1. C:..UOt e f rOrJ tile l'el?ort suomitted. by r . I . Sc:i.1oenholtz, o f com mittee, to tl1 e Code Authority of the P.c'.ies1 :r>ndbc._, Industr;;r, to wit: 11 All e:-a'1loyees in p 0 .rint; (meC1.Y!L1L; sometimes skivin: J shall 0e considered semi-skilled." 7r..e -c:.nclersigned laoor re nres8nt c ives of the corrurti ttee are at a loss to ur.ders t r'.lld t!.e tv : o re:::nesen tt• .ti ves, : : e ssrs. Golc.srni th. e.ncl A . Grecnb<.un, ,x.rticulE'.rl .. :the l < • t t e r , shoulc. he.ve &one be. cl: on t 'l1e defL1i tion oi tJ:.e previous corrni ttee of four of which ,r . A . Greel Jeum \7p,s a member , r . nc. nttested his nn::1e to the d.efinitio::s o f t:1., 1e ort. '!ne cor.u71ittee o; labo::.. on nevious occasion wn.s not srtisfiecl rti tl1 t :: e c1efini tion o f saiC. cor;r t i ttee of om)lOJ ' rs r (_icl.l constituted the r.w.,jo1i t.:,-o)il:.ior o: the emDloyers of tl1e industr" , <:>n<. H.J ti:at justice 'be 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 n e sole -yur_Jose of sub-ste.ndc>rd COi1C1.i Gions i'l ops i n ti.:e cmd. for the ;_JUI'}_)Ose of !'"Jf'tu ting unft:'.ir lt:'.bor in the tr<'de . 9811
PAGE 286
25 5 '.Te 1:n orr frora our o v m experienc e as workers of the industrJ' for over tnent y y e a::cs, t}l,",t c.. cutter, O } J e r c .tor, r.1etker, f rc:uner, :!}arer , etc., af'Ge r h<. w int:; he,c1 e;:-_1e rience of d;,_ys to two months, consic'. ering m o d e r n ized t:1nr". eff icient r:1et l1ods of is entitleo. to be classified. a t least e . s a semi-skilled. worker and justified to t h e nL1 ili1U...':1 s co..l e of 'le r : our wovided for in the Code of Fair Co:-:neti tion ior 'c :-;.e L aC:.ies 1 Inc\.u stry. (Sit;,1.1ec1.) P hili"J Lu b line r .:-:.elJ::cesei1 ves of Labor on the Com.1i t tee t o define the P r o v i s ion of t l e Ladies 1 :-=e.nr._bfl;; Indus t r y .
PAGE 287
9 11 256 R A D I 0 A -: lJJ I 0 T1 e Internn t iona1 S . s ter.1 1934: Jun 21 P M :a2 7 26 2 COU1T1 PCTlTSA S HEW Y O:?J<: NY 2 1 4:2L1.rP DAVI:U 3JL-:I DEPUr:::'Y .AD::R APP.fu-:::EL S.::CTIOE DEPAE'fl.TEr:T OF JLDG FOLLO .. HrG A?.E DEFilii T IOFS JOI1T7L Y J Y IiiD'C"S'::RY O:L' TEE .. il.'I SS IO l S 1 0 P LA30 R DE:r'I NITIOlTS liO T H I L L TjL:;:;G?APE .i/EEIJ ?3CEIVED S T O P OF S3I:ISKILL::::D CU7TL 7 G : ALL CUTTIHG Ar -:E TO 33 CONSIDI?.:SD S ELISKILL:SD, WADDilJG 02 -:: :J:;jEF: OP. C LOTE, Al!D :fJ..i\FDLES, liAliDLE ?GLL.:.:R LnTI1TGS, GUSSETS AED Sl'.:ALL T:?.Li:uii HGS T:-=A7 AP.E CTJ:::' J r CLICKERS STOP OF OPL;?.A':li N G: .11 IS 1 0 SEi.iiSKILL:CD, E XCEPT E J G E.AlTDL;S AIJD S:SWIFG A::D Szi!Ii. m O F 0 }' n.AIJDLE S ). :.-D PULLbRS , .AlTD S ErliJ.:G LI!. 7Il . . G S E i1'0 :BAGS F02 FRAHE FU? .POSZS . STOP. DEFL TITIOl; 0::::' S:Gr. ; I S I : ILLED Iii :.Ar: Ii::G: ALL ,-;o::uc:?.S ElTGAC:=D H i POCKET:JOCX :UY F...AlTD, .A.?.:S SE: : I Si: ILL:SD , EXC I:I'':l T\.JR:tJil:G I H ':lUCKS, LOOPS C-USSE:2S, 0::: EkiGilTG 01T ?LAPS, .ALSO EXCEPTilJG .!\11 ':l.ABLE ""fO?J<:. OF L I::LJ.S. S70 P . D::::FEiiT IOlf CF SEI, 'ii S KILL:CD Ii.! FRAiJIIJG: ALL :-?...Ai. ! Ij.-G-Sl-::.ALL S=:i';ISKILLED ALL Aiill FF .A: ::r:; POCKE :rs . STOP. DEFHJI T IO F O F S E ! . iiSKILLED P _ k_:-_Il1 G : ALL r .ro:rJ(3::S rir:.D D8 P .::_ :r.E T G Oil ? _._Rl JG I iAC n i 13S VfnO .Ai::.. OF CI-::.A!TGES 0:2 GAU G E , Kl;I:?E :CL:E::ii.Y 1if.r-::LEL Oi.T A P : .:ACEL-E 3E CONS ID bRE D :WZCEPTIHC-':l!:CSE VrRO P 'J.'UCKS JIJID GUSS2':!:'S. 7EE COl• } . IT':lEE AG:?GES TEAT E O PZ?..SOJ.J S F 4!\11 3E COFSID:?..ZD SEHISK ILLED ANY OF 7.!:"3 A30VE OPL.LUTIO N S 1.IT:LESS r=E EAS Er'iPLOYED O l .ANY OPERATIG:!:T F O R A P:::RIO D 0 ? SIX i :OlH!i S S 10PA l: I CODE D I:RhC T O R LADI E S t-=A liD:SAG I NDUSTRY
PAGE 288
....,.257-OF J O? T ertS AG:t.B:SD UPO n :BY B OTH E-DlJSlRY 0: CO::riSS i o ; AP?Oii:TZ D :ro DE:'.'Ii. E SEi :I-Si:GLL:D All cuttir-.;; O De r:--.tions :->, .r e to l.Je L semi-skilled, exce;tin0 cut tine; O l ' ruob e r or 1 ining cloth, C' 1c'. e:: c e ,tin g h a n cUes, ha."lci.l e linir:[; S , -'"\J.lle r , '.Jt:.lle l ' linin , s , .:,us set s (IJ1 d s:71.all trir.1I!li nc:s t nnt are cut 0y clicke::.s . * * * All is t o l_}e considered se;. 1i s kille:: , exceJtint; linings, h:.md les E"ncl pullers, sev:ing s ewiEE; on of nancUes and "'1ullers, rncl seni1ll, i:c. into ba;s :or fr::ne p u 0 oses . * * * D ZF L T I :dOE OI' SEMI-SKILLED I E POCKETBOOK ; .LAKil G All ;-rorl-:ers in pocketbook DE'J:ing hc:nd, 0re consider ed. seni s}:illecl , except tur;.1inE; in l:c>J.1C:.les, tucks, loops or susse t s , or hru1t:;inG on fl2ps, also e;cce :;_,tinc all table on linings. * * * O:t' SE?. ll-SKILL.DD E J All frami n.; snall oe considered semi-skilled excepting all :purses nnd fra::-.ue 'Jocket s. * * * OF S E : ii-SKILLZD r:t T P.ARIN G All \lorkers wh o d o p [ • .ring o n :vo.ring machi n e s who a r e C::l.pable of tlaking the . . ry ch13r1ces of gauge, knife and emer y v7hee l on a pnrinb nnc hine shall be considered semi-skilled excepting those v1ho p[l.r e hMcUes, C'. nc: cussets. * * * The CoG:a i t cee o.g:cees thnt no lJerson shall be c o n s idered ser. i-sldllecl on of the abov e opergtions m1l ess he h a s been effi"Jlo ec. o n a:ny for a uer1od of six months. 9811
PAGE 289
-258 O:?.DER CODE OF FAIR COHPETITION FOR 'iHE LADIES' E.AND:aAG I NDUSTRY s'9eci0l comraission to study labor conditions in the Lo.dies1 ::e..nc.ba.::; Industry. A Code of Fair Competition 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. Code, that "no semi-skilled . employees enga._,eC: in cut tin::;, :?Hrin.; , pocketbook r,lpking and/ or O!)Pratinc ( e::ce:9 t lininc;, cementing and/ or ba.stii'.g) in the ma;.1ufo.cture of o f t: e lJroducts c';OVerned b y t1'le n1ovisions of this Code r, ade of any mc:>.terio.ls otiler t hem i m i t['_tion leat!1er, s i1all be paid at no less than tile r2.te of per l:our11; Tile ap"1lication of se. i d Section 2 of Article IV havins been steyed by Section 1 of the Ad.rnini strati ve OrC:.er of lL!..:, 1934 approving said Code until suci1 tL1e as tl:e CoL-le Anthori t y s hall present to the AdraL1i stretor 8. definition of the terul 11 semi-sl-:illed employee" wnich receives t: e approval of the Aw11ir ... i strc>_tor; .:md Z1e Cod.e Aut h o _ri t y l1-e:wfnG been: unable to )resent a definition of saic: ter::t ncceJte.'Jl e to the Adraini strator nnd C'.ll other attempts to secure a satisfC'.CGory clefinitio}f hayint; failed; Hnd It bein also ?rovided in Section 5 of Article IV of said Code t:1at "T!1e .Aclrllii1i stra.tor may Ul)On recorrunendation the Code Authority Cl.nd. aiter full study D.ncl investigation by t h e Code Authority nnd after suc il notice .nnd p,s he shall prescribe, establish as a part of tlis Code such basic r ates for tile more skilled classes of employees as ii1D' br: to f urther effectuate the t)urposes of the Act; c::md It E'.p)eo.ring to r.1e necessary, no t w i thstandinc that the Code Authority has mao.e no recornmendD.tions as to the establishment of basic rates fo1 the mor e s:dlled classes of er:llJloyees, th[l. t a study be made of Industry to determine the desirability :Jracticabili ty of the establishment of such basic rates; &1d It also provided in Section 1 ofArticle III of said Code th2.t uno eLiployee sb<:1ll be ---,ermi t ted to worl : in excess of forty ( hours in eny one vreel:: nor in excess of eight ( 8 ) Lours in any twentyfour (24) hour period; havin.::; been mc01.de to me tna.t sai d hour provisions has 1ot tenccd to effec tuate the o f t h e Act b y the relief of unerinloy-i,ent i t'lC Industry; c?.nd9811
PAGE 290
-259-I t also provided in. Section 10 of Article V of Code 11 no Tt1ei.10er of tJ.1e si1all 6 i ve out vTork to be in C1J1Y ::.oDe o1 :::"1..\vellir..g exce,t t !1a t t ris : :..onibition shall not a"'!ply o hand. beadint;, hand crocheting o:c l c>..nd. e 41broideryi:ng, and except that and sewing a t home s!lf' _ll 'oe t t ecl. until Jul7 l , 1 934: , but not to e ;enJi tteo. theret::fter. r:2 :e Code Authori tJ shall, in conjunction n i th uch Sto.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 tne Acl.E1inistr ator 11lc.'1Y designate, study and nvesti;;at e t: e _Jrohlem of :10mev-w r k in t his IYldusti)-e .nd shall make to the Acl.r. i n i stro.tor recornue nc.c->.tions for effective unci appropriate conof sue!: 0.s is :1.erein perni ttec.. Shoulcl .:..dlllinistro ,tor ind it to best interest of the Industry or to .the best interest of abo1 or o thervr i s e necessar;, T to furthe1 effectuate J:ml""!oses of the ct, i'le me\}' furtJ.1er restrict or vJ:1oll;y ?ro !1ibi t tl1e )ractice of ho:-nerror: n this IEclustry"; e.nd It 2;p:9earing o.esirable tha.t t-1 e AdmiEi strator U11d e1ta.ke a study-f -;1ob l en.1 of in tJ.1is I! 1dustr-y, of the study eins m<:>.cle the Code Aut:1.ori ty. 1T0\7, THETI?ORE, pllTf.mal1 t to 2.uthori ty vested in me b y the Admini s r[.'.tor for Ino.us tria.l ?.ecover:r and at en.ri se, I do create an Admini s trt:..t o::c 1 s Cor.1r.:1i ssioT'. for the Ladies 1 nendbag Inclus try with such lJO\vers .nci. duties n s are hereinafte r set fort'h c>nd as lilc"'.Y 'be hereinafter assigned o it; and I d o wre J -as t !1e memoers of sai d Corruni ssion the o llou i c; n nrJed and Dr. Earl Dec:m ::o':re.:cC:., Chaiman Arthur S. Ca.rl Rauschenbusn I c'Lo l ere by ORDbR that sa.id Cornrn i ssion shall uno.ertake ir.1medi.q,tel a of the la1;:Jor conc.i tions in Ladies 1 Handbag Industry vri th :trticulnr :ceference to the uneiT19loyment exi stin ; t ' erein, competition oetv-reen the various mar}:ets of the Industrj , and homewo r k ; ? , n0. I do furtner O:tm::H that s2.id Corunission shall report to t}:e Ad.rninistrator on o efore August 1 5 , 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 Code basic rates of pay for the more skillec1. cle.sses : er.'I_'?lOJees i n s a i d Industry, as to the "?re .cticabili t•,r of a furthe1 eductiOll L : ti1e r.1aximur.1 hour lJrovisions of the Code for tl.e ")UI' ' Ose f r elievil1G unemJloyment in said Industr-y as to the advisD .bili t y and )racticabili t y of further restricting or of entirely eliminatint; omeworl: L1 said Industr'J And I do further OPJ)ER that the mem'oers of said CorJuission shall 0e compensated or their services b J tile Code Autnori t,_,r of Laches 1 Handbag Inclust!"1J. 811
PAGE 291
-260-'.This Orcer may be oodified or revoked c>.t any tir,1e hereafter. .A:py::tova l David :Ban Assistont Deputy Aclministrator Apof'.re l Section Dean G . A dministrator Ap<.',r e l Section 9811 Sol A. Division Administrator
PAGE 292
-261-E X H I B I T L Memoranda covering certain Amendments
PAGE 293
-262EXhiBIT L i'vfEMORANDU tvi August 21, 1934 TO: J. G. Latimer, Division Leg 8 1 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 S ection. At the time this transfer made ther e vrere pending for the Administrator's epproval certein amendments and modifications of stay 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 orde r contained in the original order app roving the code be vacated, and further recommending thet the pendir..g amendment be approved. Since this code has been in Deputy 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 Administrato r ' s ap proval. You will note from Deputy Berry's memorandum that there is a very serious problem involved of whether or not the a pproval would to the imposition 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 tentative o r ders, 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 opinio n vrhich 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 informatio n 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 a m requesting your opinion in the matter. In case you may desire further information, A ssistcHlt Deputy 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 98 11
PAGE 294
263 Division Tuesday August 28 , 1934 MEMORAN DUM ----------To: CRpt. J. F . B:1t Act ins Di vi sian Administrator Division III From: J. G. Division Counsel Subject: Proposed .Amendment of Article IV Section 2 of the LADIES HAND BAG INDUSTRY CODE I wasrequested b y G eo rge L . Berry, Division Administrator of Division III, for the 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 request herewith transmit to 'OU my opinion. S eid Article IV Section 2 reads as follows: 11No semi-skilled employees engaged in cutting, framing paring, pocketboo k mcl
PAGE 295
264 -specifically, but without limitation, to the right of the President to cancel or modify his approval of this Cod e 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 e n d investigation by the Code Authority, and after such notice and hearing as he shall prescribe, establish, n s a part of this Code , sucn basic rates for the more skilled classes of employees as may be necessary to further effectuate 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 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 approva l of the proposed amendment to Section 2. 3 . The amendment, while purporting to provide for a min imum wage , will in reality under existing conditions in the Industry, provide for a maximum wage for a sub stantial number of the employees, and, in effect, impose a wp.ge scale. Sectipn 7 (a) (3) of the Act provides as follows: " .. that employers shall comply with the maximum hours of l abor, minimum rates of pay, and other conditions of em ployment, approved or prescribed by the President." Section 7 (c) authorizes the President to prescribe a limited Code of Fair Competition 11 fixing such maximum hours of labor, minimum rates of pay,****" The ab ove 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 testimon..r taken a t the public hearing sho w s that the great major ity of employees in this Industry a t the present time are located outside of the metropolit an area and that the average wage for such outside emplo ees is $18 . 00 per eek. The testimony also indicates that under pre sent 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 ab ove amendment over the objection of a majority of the members of the Industry. 98 18
PAGE 296
-265-On the ground of I think the amendment is definitel y objec ionable because the factual showin.e: is not sufficientl y stron.g to justify he unusual procedure of imnosin. a mociification 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 . L atil.1e r J G . Latimer Division Counsel JRA. egal Division rhursday S eptembe r 6 , 1934 Colonel H . s. Berry, Deputy Administrator J. G . Latimer, Division Counsel Subject: of c ertein Amendments to the Ladies Handbag Industry Code I hav e t ransmitte d to Capt ain Battley , as Acting Division dministrator of Division III, my in refe r ence to the above subject matter, and have returne d t o 3erry certain docum ents which e t rensmitted to me, as follows: Record of Hearing Fo l de r conteining Order terminating stay of Article IV Section 2 of the C ode together with documents Copy of Executive Order approvin.' amendments I am retur n i ng to you h erewith the followinf: docu!:nents: NJemort=lndum of Alvin dated Auf ;u s t 1 5 , 1934 Memurandum from h eview D 1vision dated 1 3 , 1934 signed by E . M . Jeffrey Copy of l ega . l opinion of Curtin dated July 31, 1934 hich doc uments I think you left with me. 9811 I sl JGL J . G. Latimer Division Counsel
PAGE 297
-26GAu:;ust 15, 1934 T v : Division Divisio n 3 F RGLi R eview Officer SU:JJ ECT: St['. y o f Article IV, section 2, of t , 1e code for t h e LADIE S' I NDUSTRY T:1is orde r will not be consistent with AdministrE',tor' s former unless the r.menclment concurrently presented is E'. : )i_)r oved. The question of e.pprovE'.l seem s doubtful. AccordinE;ly, it is sugge s ted t :l[' , t this order be wi t :ll1eld until question l1E',S been determined • . Alvin Brown / s / AB 9811
PAGE 298
-267-August 13, 1934 BEVIE.i DIVI SIOt Grder, TenninC".ting St:" . y of Article IV, Section 2 , of the Code for LADIES I HDUSTRY L<'-bor Advisory Bor'.rd, Leg:--. 1 Division <'.lT_)rove. Division of 2 .nc.t Plr..nnin.:, wi suboestion. Consumers ' Ad.vis ory BoP.rd reyorts, but c toes not comment. Industri<'.l Advis:;ry Bc.:-.rc l . clis<".p p roves. A.drnini strr.tor' s G rder: Provision hc.vin_; been mr.de in 9811 Admini s tre.t or' s C'..}proving code C'. s E:'. concH tion of E:'. : _ J-;_JrOVC'. 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 hour) be s tc:>..yed until code ,:>;v.tl ori ty defines sc-.ti sfr. c torily to Adrnini str'"'.tor term 11 semi-skilled. Cocle Au t:-:ori ty un'"'..bl e to C'.L;ree on definition, necesse.ry in to effectur.te _:9olicies of Act ste. y be terrnin2. ted. Industrir .l:
PAGE 299
-268-c 0 p y July 31., 1934 r::.1A cG"l Division TO: Assist.:>Jlt Administrr. tor B<'-IT, Room 3016 :?RC:i: Curtin nnsor, Assist['nt Counsel SUJ3JECT: Prop'J sec iliod ific:--.tion of Article IV, S ection 2 of tl e Code -1.:-.dies You :1" .ve me recomm.end;.tions UlJ sometL.1e <'-E;O in w hic'1 I st".ted t::<:t it v1c.s doubtful 1 egc.lly t;.:e President could irrr_po se ['n ['"11endment to cJl r.xJ r'Jv-ec l c::>cle, c;.nc1 .. ne objections t 0 t l:e E'lllendment on t:1e s rounds o f )olic; . You noy; r.sk for my o)ini::m c.s t o t::e )roblem of semiskilled em)loyee C t of the President, in c.ccord-cnce vii t:1 t : .1e sions of Sub sectio.l rigi1ts ,'"'.re not so definitely estr.blished t:l
PAGE 300
-269Thur sd:-'.y ilA Se_ temb e r 6 , 1934 Division l.i E 1 ; C rt A D U 1.1 To : rG'..jor George L. Berry , Division Admi n j.stre..tor ron: J. G . l,'.timer, Division C ounseJ. Su.bj ect: .n.p?rovc-.1 of cert'. i n A m enc:.men ts pertC'. i n ing to the LADIES I N D USTR Y C O D E A few dc>.ys r-.go, in response t o y our t temorc..ndum of August 21 in referen c e t o tlle ['.b o v e subject mC'.tter, I trrns mi tte d my o:pinion reE;C'.rdinb the 1 eg<..l C'..spec ts of l_)ro)o sed a :;:;?r o vc-l of c-.me ndrnents to Cr-.ptr.in J3[l.ttle y o n the E'. ssunll)tion th.:..t, C'. s Acting Administr:--.tor f o r Divisi'Jn III, opi n ion shcul d b e delive r e d t o I fC'..ile d E'.t t 1 . 1r . t time t o r e turn c ertr . i n doc u ments w hich were f o rw<'.rdecl t o me, clo cument s r r e ::. s folloTis: Record of Folder c on O rcler teru inr. tint:; s k ' . y of Article IV Section 2 of the Code toget :1e r w i t:1 S Ul))OrtinG doc uments Copy of Executive Orde r C'..pproving These docillilent s r . r e r eturned t o you herewith . / s / J. G. Divi.sion j g l*mb 9811
PAGE 301
-270E X H I B I T M Digest of Hearing, . lAay 7, 1934 9811
PAGE 302
271 :Befo1e Assistant Deputy Vlorthy and his dvisors The vrotestants were: Basis of protest : Miss Rose Schn e i de rman Hrs. Cunni ngham Hr. Curtis W insor Labor A dvisory :tesearch and Planning Legal G. R . Godfrey Co., Gardner, assachusetts Hudson Leather Goods Co. Inc., Nyac k , Ne11 York Paragon Novelty Bag Co. I nc . , le'VI'bur g , Ne11 Yort Uneeda Eo vel t y Ba.e:; Co. Inc., Neubu r g , Nen Ne1.-1burg Handbag Co. Inc., l enburg, Teu Yor k Licht Ka:9lan Inc., lJewbur0 , Ne11 Yor k Strand Leather Goods Co. Inc. , New Yor k Virginia Art Goods Co. Inc. , L ynchburg , Virginia Did not participat e directly or indirectly in or consenting to a code and \?er e particularly harned provisions: S ections l anQ 2 Article III S ections l, 3 and 6 , Article I ITage Differential not provided. Provisions complained of: Hours , Wases, Learner s and Classification. The argu:-aents presented v:rere: Learners inability to obtain trained help. Wage Diffo r .ential of thilty ce::1.ts -inability to pay and inubility to coMpe t e nith other s in a more advantageous position. Hours -need of longer hours for office staff. All protests disalloTied under Orders 3324 -5-67 sicned by Earl 1ean Hoilard, 'VI'i th eJ-ception of Virg i ia rt Goods Company, L1c . held in abeyance. 9811
PAGE 303
9811 -272. -HISTORY of the CODE OF FAIR cm. 1PETITION for the LADIES INDUSTRY Volume II
PAGE 304
-273-E X H I B I T IINII -------Administration Member's Reports 9811
PAGE 305
-274-EXHIBIT N Dr. Earl Dean H9ward ationa l Administration ashington, D . , C. Re: Homework Dea r Dr. Howard : March 30, 1934 The mor e I into this question the stronger becomes my conviction that to arbitrarily d o away with this practice would wor k grave injustice to employe r and employee alike. As you are probably aware, Codes already a pproved forbid this practice on and after certain set dates. Perhap s it was a majority of manufacturers in the s eve ral industries affected who selfishly wanted this rule made absolute and prevailed in their argument. Undoubtedly they marshalled a great mass of suunorting evidence which warranted the forbidding the practice . ly personal feeling is one of opposition to the uractice. I know of the evils that have and do e xist. I know of the unsanitary conditions that so generally p revail, and I recognize the, frightful exoloitation of the human factor. ot ithstanding all of these conditions, I must remember that the ""Oeo-ple affected, employer and alike, ha .ve a stake in this form of operation, and to destroy that is a serious matter. I believe it is true that a certain percentage of such can be absorbed into factory operation, I 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 r y c ertain today that drastic regulation can be made effective, not, of course, 100%, or perhaps a pproach 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 be of tremendous h elp. The sug gestion made Drorides for a fairly stiff licensing fee-one that ould to a deg ree at least, keep the irresponsible employer out of he pictur e , and on to-p of that, they be required to p a y a sum to their Code uthority sufficient to provide for the policing. The burden of uroof as to the cleanliness o f the h o:ne wher e nrorl<: goes, and as to the rate of uay, ould be placed s quarely on the shoulders of the emuloying m anufactur er, and s o r 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 for noncompliance, all of hich he '1"7ould agree to when he made a plicatio for his license. 98 11
PAGE 306
275 -After inquiring into this subject on both sides of the picture, t is my considered opinion that homewor k should not be abolished and hat a form of regulation such as indicated above, should be required. Very truJy yours, 0. V:. Pearson WP:HA A Pril 7, 1934 Dr. "Sa.rl Dean Howard 0. W. Pearson Bag Code Authority Organized. this Authority Tuesday night, April 3, 1934. Meetin g 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 g ood to get in touch with Ghe Retail Code Authority and out that the strik e threat is )ased upon the idea of infringement of the Bag Code. Out-of-town factories asking for apprentices. Matter to be Lnvestigated and report made immediately. 0 . W. Pearson )WP:MF 3811
PAGE 307
276COLLECT 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:IONE Y TO MEET EXPENSES O F ADM I NISTERIN G CODE IS I BELIEVE SOUND AND BASED ON GOOD PRACTICE STOP I HAVE LOOKED INTO THE .ITEMS RELATIN G TO REMUNERATION A N D FEEL THEY ARE PROPER ROOM 4 04-40 5 9 811 0. W. PEARSON ADM I NISTRATION MEMBER
PAGE 308
Dr. Earl Der-tn Hon .. rd -27?NATIOUAL P.ECOVERY ADi.tilHS rRATI -I/AS3E:GT O . . , D . C . 45 Bro[ drray Ne'-r York Ci t.r Deputy Administrator, Div. V. lJRA of Commerce 3uilchng WC'-shington, D. C. My dec:>. r Doctor Howard: I N RE: LADIES HANDJAG COJZ AUTHORITY . THURSDAY -HAY 1 0 -------------.1n.y 11' 1934 rhe first orde r of business scheclclecl for lDst night 1 s meeting < . s settlement o f the m a .tter of defi nition of se;ni-skilled workers. I <.rn sorry to SP.. y that it was nocess ry to ) OSt pone this matter Rf:'ai n . rhis was the c ondition that I found. The New York g r n :xp nre no.1 negotie,tin0 Tii th ln.bor for c.. neTI aereernent. Bt. sed. u:_pon pP.s t e ";:perience, they to me lr..st night, and nointed out the t if this d efinition 1 :1ere immedi o .tel y settled, ::-.nd under this ne\1 definition the out-of-to\ m seni -skilled worke r s .rould be raised, the L pbo r Union i n New York v70ul d i r.med ir-tel : r insis t unon n increase rnr..de for this in the 1Je ' Yorl.: ?rea, P.hich ould imrnediatel J' . .)l < c e Ne"P. York in the-brd. c ompetitive i th resuect to the out-of-tom1 I also discovered that the c ornni ttee h acl oeen unr-blo to there being a shC'.I"-J cU vision of opinion, divided on the 1Jt: sis of 4 to 3 on eech i tern tPken up for settl ement. L1 :ddi tio::1 to thn t , Lp"'r)or itself turns in a third r e.;ort. I hr-ve a . ;re8d to '"'ke visits t o some during this conine ueek for the ' )l ll' ) OSC of sceinr; for nyself ex, .ctly '17he. t is involved i n these o er<:•tions c 1U. c n n norc intelligent 0""9inion as to whnt is a definition. I trus t this t.rill meet Pith your ayprovo l . Huch as I r ec, ret the elay, I E'. m convin ced it sound to a&e..in vost )One it for n s:1ort tine. I find the financia l si tuatim: is not so hot. A re uest 'las sct out to the Industr:-y to :oay $25.00 eac h o n ['ccount, to oe credi eel their LP..bel o rders. So far Industry not rCS""r)Onde d . rho C ode Authority c .'"'. n discount 1 : r i t h the brmk ell orciers for l [)bels they receiv<.: but they cannot s ecure these orders until tl:.."! 1.)-i.l. :ot s )t'.lp is a l )l)roved. This I believe h c .. d becll i;! . : : t>!li 1 to 1 for !1 Tieek or t 10, cl I wonder if it is possib l e to r;et i • 10 lir '"'Ction. 9811
PAGE 309
278-A number of neti tions uer e .)resented to the Code A uthority. Upon sone of these, flction \7:->S. tal,cen rtild I understood thn.t them Hr . Mi ttenthal will notif: r your office dir ect today. Others nere laid ove r for the of seel:inc; further L'l.foror-ttion. We will h ave set UiJ durin{ ; this neek the Trr,.d.e Pr.:->.ctice Co ;}i)ln,ints c:md Labor CoEn lA.ints Conni ttces on
PAGE 310
-279COLLECT AT lf.a.A HE.ADQ,UALTEnS .n.:r \TASHii7GT0-7, D. C. J AIJE S C. i10RTiir ROOU 4318 POSTAL T.ELEGllAPH 0:":., CO_;;IERCE :i3tJILDLiG WASHii7GTOF , D. C. 17' 1934 UPOIT L.A:BZL COST OJ? TiL LADIES H.A.iiDBAG CO:DE .AUJ:HORI:rY IS PR O FErt .&iJ HAS l:Y APP-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 A li EQ.UAL JJ.ASI S O F APPROXIi ;A:2EL Y OliE THirtD O:t; ONE PERCENT Room 404-405 9811 0. 'W. iEiiBZR
PAGE 311
280 NATI OITAL. RECOV:.:RY .ADi Ttii SirRAri 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: L nd i E3 s I Hondbnp.: Code A'\1 thori ty Dea r Hr . TI'orthy: Shortly 2.fter this Code Authority st['.rted its last night, Notice of respect to definition of E'nd the u lea fo::.. <1. chnn.::;e o:l tr1e C ode .Authori personnel on the ground that it is not t r u l y tc-.ti v e , 1;:as rer>.d.
PAGE 312
281 -Finally , ?.t four this mornine, I sug5es ted. th[-l. t I procure frou m t of towh manufn.c turers ond tcm eqL.l.tl nunber of 'Te 7 • or!c T'l[lnuf actursay four to six in each case, or at le<,st of the major price li:1es, a definite cost of o •Jert"'tion figure 1hich, of course, I can onl0r get fron a quick surve"r "b: a.:.1 accoun the next fe1 7 das . It wc-. s .,u:_,c;est.ed tht"'. t . if I ;ould do I might ask the Adninistrn.tion to the hearing, set for Tune 16 I think. They ryere nec>.rly of the _ that they get a :hrnost D . one hundred percent agree:::1ent on the decision that [ reached, I uould 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 me the names of the v arious r:Jc=w.J.ufacturers to \"hom I r.:1ight go, end [ will send a letter to tl1em acquaintL them of 1 :-rhat I w.ve in mind Dnd its yurpose and chiefly bes:9e!'>.kin::; their e,.rnest co )lJeration. 'We can be turnin g over '7hatever books are necesse.ry to the Engineers 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 Tihether the Code ty are El.greeabl e to the expens e of this job, VThich [ don't think v:rill cost over t11o or th:cee hu...'1.dred dolla.rs, at the most. [f the desired results cc>. n be e . ccomplished, certE'inly the ef:'ort is orth Lt. In fact it is 1orth n great deal more. Kinde s't rec;a.rds. 9811 Sincerely yours, (Signed) O . TJ. PZARSOlJ O . TJ. PEARSOlJ .AD: iilii l.IEM:BER LADIES t H.A.liDB.AG CO:JE .AUTHORIT r
PAGE 313
282 1.1El.10RAliDUM June 8 , 1934 To : David Be.rr, Ass1t, De;mty A dministra.tor From: o. U. Pearson, Administration lilembe r 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 prob l ems facing it Tihich require v ery definitely the finest type of brains that e .re to be :.;roc"ll;r e d , if one is to look for the discovery of the si.ck s pots and neaknesses c t present existing.I think the title Planning and Progress Division of the Code Authority is not althogether a descriptive title, nor do I think the 11Contributions to for Code Authority work11 A .re as well put a s they might be. Briefl;y-, the :'Jlan t his Cod e Authority has in mind is the securing of a and d efinite :)icture o f this so that froo the facts so disclosed one way be to the curative d9se that is necessary. Obviously, all of such work requires, as I me11tioned properly qualified brc..ins. Hence, it was that the Code Authority after long discussion and set up the E xecutive personnel of the Code Auth ority as they did. It so ha:i_Y)ens that this E xecutive j.)e rsonnel 11set up11 is a peculiarly ha;s>py one and, if I may s rw so, almost unique, at least in the A.P:?nrel Industries, since the t hree Executive he3.ds men of long experience in the Industr;y. The Executive Director in charg e of Planning Research is an exrrember of the Industry nith better' than thirty-five (35}.years of experience and knows the distributive y r oblens of this Industry, perhaps, better than almost any other man in the Industry, in fact, he is ledged to be, what one T1C1{,' term an expert in such problems. The Compliance Director is manufacturer of thirty-nine years of experience, and knows the r.1echanics u f nanu.facturin6 from A to izzard. His job is a peculiarly difficult one requlrlng a most imate lrnow ledge of industry and its n r actices. He must be of the high.. est intelligence and integrity . The Executive S ecretary is peculiarly well qualified for his posi-ion. 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 hap pens that labor problems involved are very acute and if one i s to pre serve the integrity of the Industry itself, it is, vi tally important that he Code Authority should have the s ervices of a man who is qualified in his direction. Il.:addition his e ;q;erience as Secretary of the Bag T r ade ssocia ion has given him a ripe organizing experience. 9811
PAGE 314
-283From 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 vvi th which to oper ate for travel and other expenses. 11his of course, has been due to the fact that they dicl not 1.1ant t o start the se.le of l a."oels which uould J)ro duce the nece ssc..r;? revenue, m1til te 0 :),)rovc1 of the l:1.bel s, their sale, and the budget was had frorJ tl c This is, I think, something to the credit of the Industry i ll contradistinction with tain other industries ' 1ho hc:we proceecleC_ wi th01..1.t wa i till-: fo1 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 c 1 t transgresc the r ules and regulations set f orth by the Admi nistrntion. I think tho breakdovm of the Budget fl.S en ted cru1 be improved so that :perhaps it will shou a d ecrease in the total revenue and expense, not perhaos a reduction, but none tho leGs o. reduction of severa l thousan1s of dollars. 9811 0. U• Pearson .Adi:linistrk ,tion liember
PAGE 315
-2&4-0 . 11. PEBSON . 1 Il TI S I 0 li i iEi L3BR DAVID nl...RR DIVISI01! FIVE, DEP ARTi' llilTT C Oi iEERCE :GUILD L ."G D. C. . 45 3?..0AJ\!AY, YORK CITY I Au TO HAVE mETIEG \liTE .A :SAG .ULTtJr.ACTUiillRS GROUP MOlTDAY MORlii!JG. SToP =mLIEVE i.IAY TI:L iillLZ :ro SOLUTIO F PRGSBlTT PRQ:BL:CliS STOP \TILL GET I :: TOUCH ' .liTH YOU. SOOl. AS IC:LTL:G CO:..TCLUDES T1. PE.A.il.SOIT STRAri Oli :El ffi:CR ROOU 800 98 11
PAGE 316
Digby 4-2324 Mr Dean G. Edwr .rds -285lJATIOi iAL RGCOV2.RY 10 r:;IS1R.Al'IO:iT 45 Bro<:.d c-y Ne':7 YorlCity Deputy Adr:!inistra.tor; Div. V. liRA Department of .Com..TJerce Building Washington, ]. C. Dear Mr. SUB.J".GCT: LADIES ' r IDUSI'RY July 2 , E.l "'4 This industrJ T:lA.d.e another ste ) in the , ) ro--;r ai'l that Tie l aid dorm for them some v1eeks ruul u ) on rrhich I have s )ent so . ch ti:Je . After the Code Authority neetiilb held. l 2..st Thur:sclay afternoon <"1. l, ass Meeting of the t o ' fightinr:: org<:ni li s held for \-he mu:aose of ca.rr'Jing out an agreenent e11tered into Fi t h m e by R. corJJJi ttee re;J:..e senting a group at a held n prior to the last public hearing. At this mass r:1eetin:-; it fornall._.r n.r,reed th?t the t o rssoci ations should unfte ancl c arry o n o. constructive lool::in; fori\Tard toward i tat ion o f this Indus trv. " As you know the picture here is a r ather SP.d m1e. Its volUI!le is do11n to about half of ,-,hP. t it nas t10 or three r ::.;o n.n<.1. I an very certain that the prof{ts have entirely The Labor Unions r.re rtlal>:in-:; a stiff fi::;ht on the Ifi"..tter of Industry removing itself frou Ner1 Yorl:: City to ot!1 e r pe.rts of the oountr • They are at present taking issue Tii tl one concern ,:-rho a ryeek or t110 ago rer:1oved its f p c tory frOh 1 this city t o L P..Ssachuset ts. So do the Unions feel that they are mal:ing cu1 issue of i t vri th the lffi.A and there will be a hearing a t #45 :Jr o .dv7ay, this mor:1ing a.t 1 0 A.l . • , ?t nhich I am to be present, respecting this cor1 llo.int. The story back of t his is en intercstj.nt; one. Both :r. :13arr and myself have te.ken the nostition thct there is th['..t ) rohi oits the renova l of a fC'l.ctory one olr.!.ce t o another, lJ t r s I underntood it the Union insists that the m:muff' .cturer in question tc:t along ri th him all of the employees workinE; in Ne. r Y orl::. The r.1::.nufrcturcr refuses to do this on the following grounds. As f' result OI i n his c:-• >it, 1 and assets he could no longer o ut' ,il1 b r . n t: accorn!'Od:'l.tion .. in the city of ierr York. Some months r.t;o he lerrned of a v nca. 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
PAGE 317
28E -to four hundred people out of -ro:cl':. This ff. c to1y closed because of the dry rot had set in the firm thr,_ t hr. d fornerly conclucted the business. Their business rras compo,rable to hrudba.gs s o thC'. t the forner em ployees are more or les s fru,1iliar 1i th of bag manufC'cture. l'his Ne11 York concern he.ving leo .rnecl of this fm.mcJ. thn.t the local be.nks there would give it ryhatever i t needed, it reopened that f n c tory end took off tho r elief rolls of tha t to1m the former employees of tha t f Rctory. This Nen York m?.nuf actur e r hcd not con tr2.c tual relations Di th the New York Local Unio n , contract havi ng expired on June 1st. The union and Industr y he..ve not -ueen e.ble to C>.gree t erms for .the of their contracts and I suspect thC'. t this delc:-.y in settlipg i?ne\7 mont is based u p on the ho: :e out o f the Jublic hearing scheduled for July 9th one side or the be in Cl. nore •Josi tion f01 mc:tkin g terms than they are t oday. The whol e situation in t h i s Inclustry is 'JacL. :Jo\7 thn t the c::.ssocia tions h Ossibly they con begin to TIOrk to' .-rard the sol uti on of the nany pro b l ems fEJ.cing then . Here to, ci.S in Uilline r y , the price s tr-1.1cture , their b<' sis of figu.I' . ing costs, (I suspect inefficient f actory o'?ert'.tion), the buying of orders r ther than selling a .re the trou'ulesone fE1.ctors. Here , ;t:dn I hope to b e c:>. blc to give them the benefit of e:: .. uerience along those thRt shmt l d look forTinrd to a better state of affairs" Yours ve1y truly , / s / O. U. P:CJUlSOlT O . TI'. P::..:..tillSOlf ADi.ILii r.u i.E; J3:ER OiiP :DAR 9811
PAGE 318
11 2H7 O . iJ. .AJ) iilTI ST ... \.AT I Oli 1E: GER 45 3ro['.drr<'.y, li':i:U CITY JR.A HaP..dqua.rters July 26' 1934 DAVID :JLID, ASSISTANT DE?UTY ADi :ETI S1'RATOR, :!:JIVI SI OE FIVE, ,leA DEPARrMElJT 0? COI.1H8RCE :BUILDL: G D. C. I RE'COl.Il ill ::CHAT :CZEI.a:>TI C li AS 3': P lili.AGRA?H Tl-IREE ORDEi t #36 1JE FO:t 1 : E .AlillBAG E;DUSTRY # ••• O . TI'. 10: :rEIO:LR (this telet; ran s ent over Admini s trc-tiol1 l 'ie1.1bers orm pri vc>.. te rrire)
PAGE 319
Colonel Harry nerry Division 3 C ommerce Building W ashington, D . C. 45 :Bro;'.d m.;r, li.. Y. c .. Se pte:.'lber 1 0 , 1934 RC: LC1.clies Code Authority My dea r Colonel Jerr y : I enclose hereuith sooe statistics o: done rrith respect to comolicmce in this industr y . Uhen one cons ider s the disC' . bility , due to l nck of finances, under \Vhich thi s Code Authority suffered d.ur:j:n g the first tro or t hree no:nths of its life, one c p.nnot hel"cJ but be astounded a t the ru: 10ui1t of ground cove:ced by the Coc1e Authori Direct ors. U J t o 1, they h,,.,, d no investig R.tOl'S ; eET:)loying their first ma..n on July 1, the seco:J,o. August 20; ancl. the t hird., .August 27. I t hinl:: you ?.ill go a. low ; •my oef'or e you find another code euthori t y that has worked as conscientiously, m 1 d that hc:ts n ccom;JlisheC. n.s much r . s have those s ame t\JO gentlenen. P:ease had in e:-;ccess of ten thousand dollars :_)a .id i n restitution. I undorste .. nd you 1ere in tonn lnst week, and I am sorry I did not see you. HB EJ.-iC. 9811 Ui th I am, O. H . P::::.ARSOJ.i Admini s t r c , .tion 1 ieober
PAGE 320
Colonel Harry Divisional Administro..tor Building ITashington, D. C. 28 9 45 Broc:.dmw , lT. Y . c. , .. Se--tenber 28, lS34 RE: Lr inte resting to n'Ote that, not rrithst.'"':•1.d ing the { :e:;ler.:'1 stril::e situ. ation, which is so seriously cifecti.i1s o v c r-;ron c , 000d S Y ) . i ,ri ts In JrivC' .te co:1v e rsatioi.1s .ri th o:1c or to .nc::..."'lufe.cturers before the meeting, I '7f\ S inf orr.1e d that the s tri kc i s :Juch nore serious tl: CG'l 1J'Jr haps I thought, a nd. th['. t :i,t is doubtful, i f it la3ts e..nothc r --,eeJ: , i f many of the nanuf[).cture r s o.:-.:n sto.:rtl the 1!:/' f . Th e C onrJtLn.ist e lenent is definitely i n the saddl e a;.1cl I . sJ>:in G for opne::1 ti ce 3 , P .. "ld 3" forth. i :os t of these, in f[).ct I all of the!!l , '-rere rejected on t e r om c'..s thF't the position te.ken by the 1 Jeti , . . ;"l. S Ul1SOlmd. These ill, of co'lrrse, go forwr.rd to you fron the Code A u thori Orficl3r s . 9811
PAGE 321
2 9 0 here Tias plco b rought ' t o ' th n , t t ention of the Code Authority your request for ir.u:wd i 2.te o f '.11 or. en .1ent to the code, changin.; the sc['le r>.:..1d del e ting t-r:o trouble s one !:)a r ac; r<"1:Jhs r e l ating to seni-skilled definitions. I h'd g tele)hone c a l l , . f t e r n oon f r o!"J i! iss Schneider nn.nn , Tiho an e J)OL1t mcn t Tiith De f o r t his norning. The ::>U ose or l e r neeti'l. -.7i t h ne TI'.S to discuss, or t o ir.rpress he Code Authority t hrough me, the insistence of the L e .bor Adviso r y BOC'r d thc.t c.ction must oe t aken b y the Code A uthority on the mEl tter of "'c r;es, o r that B oc . r d uould inne d iEl.tcly petitio n y o u to discontinue tl e str.-r, ...,.ls o thEl.t y o u Tiri t e the definit ion of semi-skilled . I thought i t t o ic::uedia t e l y phone the Cod e Director e.n arr'lnge for f:l. S!:)ecie l r.1eet i ilb o f C ode A u t hori to be not lC'l.tcr thc:n n oo n , for t h e w to fornally ,...,_cce:?t o r reject your p roposals, o-nd. , i n the c <.se o f to st;--te t h eir re[1.son s for holB.in" it over . <.> ile I reoli. ze t h [ . t the iniu stry rw s been rau c h '. t f ault in their o t h i s ent i r e suo j ect, I f e e l , t h a t a t t his JOint, bE::r>rin.:;_ i:l qlnd the Cof'l :un: . s t t nree t , i ' t -r:o u l d o e unwise to p ress t o o l1nrd for (). final de cisi o n UJOI : t his. .Althoug h i t i s denied by the Cotl.e 1.i r e ctor , I :>P.l o f the d e f 1ni t e iii!!Jression 1!:;:-. SteL 1 , the L abor :'e)r e':;entc t ive, :)resent lD.st :1ight, C'l.gr e e d r:ith t h i s Hiss Schneider nrum .;ill checl::: 0:1 t his E1. t n .Jeeting she ex_pects t o w i h i n lcter t:1is r>-"'ternoon. The rest of the neeti:nc; 'I&S inte resti!1g , aoneuhat amusinr;. p e acea"'ul e , and •-rc 1 i na.ll:' a djournecl a t 1 0:15 p . i J • In n convc:r:sation I h< . . d :rest erdny •i th Capt<1i n Brick ley, he inforned me that i t '7C'S his feel ii'\r; I shoul c l co:.1 e to iJe.shington ueek , and l,e ould see you rtb::>ut uirin c ; ne the order. Perhn.-J S Tiil be t;ood en01.1[;.;h to renind. hil o f t l is. HB 9811 O. U . P:C.!i.RS r1! Afunin istrc-.tion
PAGE 322
olonel Harry S. Berry e.;mty Admini s'tra tor ivision Three Commerce Bhilding rashington, D. C. My dec-. r Colonel Berry: -29145 Broe.dney, l ' J . Y • c. 26, 1934 RE: Ladi e s 1 Code A1.1thori ty The meeting of this Code Authority lc:-.st nit:;ht nas sone...-rho. t ous , but I felt, by the tir:1e the so ss ion y;as ov er, that the nenbcrs '170uld be able to reEt.ch an '7i th the Adni!listr---.tirm .-,i th r es•Ject to the matters in for so I was pc-.rticularly r l acl the. t 1.:1. Or e '7r s resent, becr,_use, <'l t!. 1ough they d],d not for the r.1onent t>.cce-Jt th9 ro:;osals m pde b y hiJ.1, he, s )et:' k ing 1i7i th the voice of r:ruthori't:., convinced ther.1, I ::un ccr:t<'in, of the need of irunediate The me.tters t o r:1d hour s c:>nd the definition of se: 1i skilled were referred to n co::111i t tee t.'hi ch I ;:-; skocl to sit e . s c. member . This committee t'Till be c nlle . t c s , Ii r . Oro lOinti:lt-, out that they r . r e not _Jer : .li tteC.. S:he outcoqe '7' ' .'J t wir rC1'li::1dL 1 Lle thC".t, in the her'.ring lc.S t s !.l.T'JI!ler, the s e t U } 1 of the ne--Co,,e Authority ' r s p laced squc-.rely in my h
PAGE 323
-292-in turn, 11ill , I think, be folloned. b;r 2..11 inc'ustr y meeting , and I ho,)e fro, t_ \1. t n :mch better f r ame of mind cooe int o beL.1g ::md tho.t I shall be eblc to send you nor'!ine? .tiol s for tho t h ree c..ddi tion(),l ne:lbers c;1nd, perha-ps, ['. S rr.1endnen t t ' o t'he Coc.;.e t enlC"r[:;in{; t h e body t SO t ho . t it ill be TJore truly reurescntr t ive. Of course, ""Te nll the str e 1u ous been havi nt; , .0.nd thnt m'-ny of the troubl e s , under : r h ich they h a .ve been lnboring, heve been the result of tl e i r o m folJ.:r , rc:.ther t h
PAGE 324
Colonel Harry S, 13err;)r Administr2tor CorrrJerce Building Washington, D . C. -293. lTATIOliAL RECOVR:. .. Y Jill i i iiS P-.' riO: 4.5:Sroadies 1 H['_ndbq Cod e At.:thori t7 w dear Colonel Berry: T h e CorJ,littee 2 )-•)0inted at ti.1c Code A uthoritneetin: ; of last week, r:hich i s to make a r o c omncnda .tio n t o the Cod.e A u thority resnec ting the. hour and rra.:;es sic: n , :.1e t and GC't for f our hours yes terday and. decided the y uished to talL:: i t over rri th the entire L1dustrf, uhich ':la-s to meet a t o i:::l t o 'clock l>st !!i_,ht. At the Code i t \7['S cl .. in fe.ct, a very strong rrish mts thr:>.t I be u rosont. Ho :e-.F : r , e . t the Cor:1mi ttee rueetint:; t r,c r .. : t o a feeling tl 2.t industry more freely if nci thor the CoJe Directors nor r .1yself Hence, I d i d not d i d , invite the Counsel of the AssociPtion in the person o f a .-r. Sc h lessinger. I . am told this morning, ' :r. Schlcssinccr made a wholely destructive speech, t e ll..L1 c the indust:-..7 that the lill.A qas unconsti tutionn l rmd thn.t no coC.c C':a.t 1ori t ; Ccu1 levy p.,sess;11ent::; or collect a n y other f r o 1 i nd:u.:-tr v . The result o:: c>ll this '7l1S a definite e:x:pr c"sion of feelinr t Ls.t • ouJ.o. no t t:-.co r::ny C'.ctio:1 ,i th res-nect to mel not t o :::.;ythin,_ i n e::::coss of the :yJr e -1 sent minimum wa.:;e . you, to a I keenly :oout. t his, becc>use week, C'S I Tirote I had ho-oed a.nd believed cool hc0. cls uo lld -or o vril pna could como ... satisfactory settlenent . I p resune the Code Authority .:il l et together v ery sl ortl;l , r.nd take formal action in tho !llf'..tter, of 7hic:. , of c ourse, rou .,i l l be dlly advised. V e t rul 7 ;y-;urn , / s / o . IT. SOli 0 . IT. .. AfunL1istr tio IIcrJbc-r HB 9811
PAGE 325
J r . Schaeffer 45 Bro0. d':ray Nen York City -294-Decenber 5 , 1 9 34 RE: Ladies 1 H.1.nclbr , g C od8 Authority to be hel d Thurcod[q c.t 6:30 , Dece: 1bc r 6 , <. t the ;icAlpin Dr. Schaeffer : In vie, o: rrtr confinement to bed, I ':Iunde r if you yill be good enouc;h to hcwe sor.1eone c..1ttend. to this Cod e Authori t./ r:1eeting in my pla<;:e • There i s one subject thc.t 7. ru s t be brought u p .'='.t t his neetine. For some monthn pest, the salcsnen of this industr y hC'.ve been tr:rins to persuade the mlt i tled to the courte s y o.L a hee. r ing [-l.nd di S::::JOSi ti on . At teched her eto 1J lcasc fincl letter r e ceived fr0n i Ir. I tenthal today, enclosing P lan for Control of Hone,-;o r k to b e subni ttec1 at the meeting to 10rro':? for the of the Code Authori HB E1TC 2 9811 Ver y truly jrours, O. IT. A d.Dinistrf't io:r! !!embe r per
PAGE 326
I r . L e i g h E . Or e .: .95--'1.1 ::cc o v:wr; .n.J: s:;;:;_ 1:: )!: 45 Br o t d.,.,::,,y, J . Y . c . Ass is trnt DelJU t _ r Ad.n i n i str a t o r Conmerc e Juilding UeshinE, t o : , D . C . RE: Lo.di e s 1 r n d bc.g C oC..e .l.mthori Dear Mr. Ore: I trans1ni t here : i t h <'Ucli ted :: o o f this CoC..e .8.ut hori t y for t h e mon t h o f October , 1934 . As tl is is u o ii1 v.:;r y cO.Tllete forrJ. Ther e mcy sone quest.l0:1 i -;. the !Jinc1 o f e i tlwr : or Planning Resea:tc h .. s t o the si"'e of the o :. .;:J.o,mt i3 l.Clr :c . Cis not quite clc.s c . r e3'J. l t t.1e atriko t his SUllliJer , the c h.:-i1 [;8 S 1 r h i c h t ; }:e 1 ')1:-c c t 1 l o c 2tion o f fc..ct')r ies. i n the 4 , 2 1 2 c L . . s sified. e:r l o...,.ees :; o u t s ide of Te for l: , a s f1t;ainst 1 , 8 6 4 i n Non Y o r\:; I feel that the . s i . ., s i::. l.u s tr;::[":e n rovL, ; , a< .:.1..1-fecturers 1 1:1o ro.l e 11c:.s i ) r o ved. , t"..::C turt t ! i s .1e.1t r l rJp roac h to thei r )robl er.:.s . I hac. an i n teres tii."lb s cs;;::..o.: n ith -:he Code J2.l'Cc t r:.; t ative s o i I' r o . v e l in-:; ... 1 st j ?riclrq. Thi s --;ill be folloryec by 01-:.e rri th o f t h a :.: .. 1u.f2 . c t u::e r..., AGsocir tio: 1 tociay, v11d I h o)e, out o " it, nill cone r-.;re<:ter ' . 7ill i nt;ne..., s on tho i)f'l.:i.'t o: manuf acturers t o c onsicle r t:1c rel tio :shi ) thcnsol vcs < s:l e s I!len in.:-.. s o m e hr\t li-_;h t .. r : . h:-s .)een the c :->e hitherto . O f t h i I Tiill r e 0ort lc.t e r . Ui tll :-;:ino. r e ; :i.':Ls . HB 981 1 Si11ccre l : yo -"' >, o . iV. C.:; inistrt'.tio,:
PAGE 327
1. r. Leigh E . Ore DelJuty Administro.tor Textile Division Conoerce Building ITashi.ngton, D . C . 296 -NATI OUAL RECOV..::RY ADi.II1TI STR1 TI OU 45 rOf.d\!<'7 , January 4 , 1936 BE: La'l.i os' Hand'bn.g Code Authority L1cetinr ; , Th u n:;dny , J nnuf'. r ;r 3, 1935 Dear Ur . Ore: The most peaceful :illd co:as true ti ve mee tint; I h ave eve1 had u i th this industrJ'• The C ode Authority c overed n lot of ground and at all times c:-..p}Jroachecl the matter s :'resented for their co11Sideration i n a tho ughtful rnanner. The r.1eetinG a
PAGE 328
297 -Voting -It ':7as un311imously ae;reed th0. . the l!lrdc by the deput.".tion, w ith to u t\"ro-third. vote be in required on mo.tt ers strictly relD .tint; to their branch \i;J.S not D r nctic[ J. nnd that the majority vote, as provided under the ne'' a : nroved. :B;;r-Lc:ms, b e follo\7ed. For1:1al resolutions ,-,ere ST>read. on the rninuten r esrJect to et'.ch item mentioned above. It was agreeed that the Cod.-e Directors should consi tute a cor.1f!li ttee to iron out any pos'Bible dLffe:rences thn t m ight co n e u p so that the mat ter can be for your a:rrDrovul a t the ::_ouolic henring next Ued nesday. A.u-)rentice RequestS' These still, continue to cone up f'lld ti1 e Code Authority re-affirmed the -=.)osition h e r e tofore tal:en by it, Tihich is one of tion. Des i.;::n Piracy The ;lan as 7?!'esen ted unc:ninously ;p:orovcd. Cost FormulaSince COI!'_l!litteels re:)ort. on t his subject had only been distributed to the of the Cod.e Authority tuo or three hours before the meeting , it v:as d ecided to l a;r it over until the ne:-t neeting, on the distinct that each :1er1ber rroulcL co.refully study the re-port so that the .de this ) r 0 :1is e feelin,; it 17:-' . S t:ne politic and thing to do
PAGE 329
298 -I unders tf1nd the s t n te of the indus t r :r hr. s ifl!9 r o ved to a consid erc.ble degree. There c..re still r umblinr-;s o; l e.bo r t roubl e s , but t h e sepson wr s one of th8 best hPrl for scvcrcL : rec;r s pr-.st , The Jrice floo r lifted, slightly r.t leC"st , [l.nd tl1e for the int; seoson are 8 .11 good. ..ls is usuol, the C od_e Dire ctors a r e on their toes , "'1'. 7DJ'S strivino to do nore thc:u: their y'..rt hel p i-'lt-; t h e inctustry . I think more than a.ny code ciire ctors I l:o.1o" of 1 ray moro e .ttention to nhRt is ha:!Jening in the r e te.il stores, bot h i n their o.dv ertising e.nd in the COi.lduct of the lrdies' hr..ndb<:'.g depc::trt ments . T hey c:..re raore a l .ive to sone of the follies cof1_!:l i tted. by and b_r retail merchru1ts and are quic k to ex_zJress o .p)recie.tion o f \Tha t manufacture r or retailer r!la;y be doing thC':l. t is helpful or constructiv e all of w hich tends tOTIL'rd of good feeling, underst[1.n d ing and ap:Dreciati on of the Code Authori t :-1 s t70r k . I .o::-11 told _ t h e big manu f ncturers, Tiho b itterly fought the cho._r1ge in the discount structure, because of their fear of friction betneen thenselves o n d ir::()Ortant ret0il mercbants• no'\7 find the neP discount i s acceptabl e a.nd ceased grumbling Dll of '\7h ich spells considere.bl e sums of mone y i n t h e coffers of the I shall be delighted to see you i::1 'fl2.s h ington next rreel;:. I expect to n rrive I.onday norning. Uith k i n dest reg .. rds . Sincer e l yours, / s/ O . Uo o . IT, p:;::;_:ffisO=i .fuJini s trr.1 . t ion i !ember 9811
PAGE 330
-299-45 ]rOl'.dDr'_y, li . Y . C . . J anuary 17, 1935 Wr. Leigh H. Ore .. Assistant Deputy Ailiuinistrator Section Commerce Building Uashington, D. C. Deq.r. VIr. Ore: . RE: Addi tiono.l . :cr1be r to the L<.1..dies 1 Code Autho'ri ty ' 0 , There is included in the order this Cocle the follo,: r, --. b .ing: . ' 11Th8 . 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 o r -Elected by such methoci o . s he n2.y in 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. who are not, in the of 'the Adrflina.d.Bquately o;, the Co(le 'lmthori ty. it . .. A.t. the. time . the ori D s o::c_igino.lly set u p , there .three major ,t.r 8 _de associations in exi s tence, P.hich between sente. d tl;le 'larger portion of the industr-y located: in tl:e Erst. There is also o 'ne loco.tE?d in Chic()_:;o CL11d had a sl.:eleton org;u1i zation 'on the Coast . Since tha.t tir:1e , the co:1di tiou h s chenged ru1d t ; o o f the three m[).jor associations, in York Ci t : r , hcwe been merged, and the third dis'ba:1cted . i1hile trhen it nac advisc:t'ble to base tne set-up of the Cpde Authority u:JOn as. I believe it is unwise to non consider froq vier7poin t , pnd t l1c indus try is . c:creed to At the hecr ings held last su.mr.1er, it ins is tell. bf t l e Ac1J. inistro .tion thD.t the three addi tion0. l meubers C<'lled for in the ord.er of approval should be upon the Code After oore o r less acrimonious arge.nent, the industrJ c.[;reed. that the c.:1 >Oint ment of these three Qen should oe l eft i n the h"' .nd of the Admin istration l.'Iember . It is to be noted th0t i n 2 .11 t 1 e discussions they laid emohasls uuon their desire t hn.t the Adninistro.tion uyself, make a:.Jpoi.ntments. I tried ri thout effect to sidetracl:: this r e ty, but since those condi ticns oeen M n rkedly ch<-'nged and I, therefore, yresent the follo n<-nes for your 9811
PAGE 331
-300-I'lorri s 1hi te Stylecraft Le nther Goods C o., 5 0 1 Seventh Ave . , !. . -. C. J . i.iichel l'ichel, Haksik & Fel dman , Inc. 159 i\Ic:d .ison Ave., li. 1. C. A . Greenebaum C hic C o., Inc. 6 E ast 32nd. St., li. Y . C . l . fr . Uhi te i s gener-ally c alled the Fa thcr of. this indus try. He is the most colorful man in it. Ha has b een some\7h a t of a. ryroblem to the industry beccuse, nhile in his e.:u l y he '1<\S <'. great builder, having lost his fortune, he to h.:we ch?. nGed his and for C'. n hile it looke0 . .:S t hOUG h . he •-re .re c;oL.l{ ; to be the creat destroyer. HO'?eve r , h[:'I.S vision d ir:1at;in[ ' .tion. i.ie c 2 . n look at the probleTJs from an industry vie1noint o.: _(]_ since he hrs t.;reat for evil• I . belie v e if e ort. n c hin into_ the fold 11e nake h i il e. f0r good. I, therefore, ur""e ap:') r . ovo.l of h i s n0.T : le • . . . . J . has, . since t h e i n QS};>tion of the Code Authority, been actillG c?S e .ltern?.te. I n his ti ) e he has been the b rent outsto.nding s o lesman o f the industr: r . he heads orn1 business C'.nd -rrhile h e is of the excitabl e t :'".!.)e, still I have to credit hi!ll \;-i th : a Of c.:.ffnirs , and he defini tcly sh0'7S a de.sire to approach problems from the industr y ' s vie.:point. I, therefore, recomnend his narae for apprc val. • Greenbaum -I SUl Y ) Ose there is no one in this industry tTho knows and unders tancls e.s r rell a s doe s Hr. Greenbr.t'U.r.'l the labor involved in t h e uthority meetinG S 2n a g r ea. t ?ddition t0 this of his <:J>O intnent. hf's U)on ['. fer:-occ2.s i o . n s O..:? > e ared. at Code P.l ter_ : 1 , te a:10. I Nl very certe. i n he nould be I, ther e f ore, Cl. sl:: for your The a:> 'lointme11t of these three men would fill the Code Authority and f o r these n o C'Jl endmen t i s :Llecessn:ry. T his does not, take c a r e o f the tn.o additional men required b y the Te11-Cent to Fifteen Cent Group . To provi de for these two they clesire the..t there be e.n a m e ndment t o the Code, w ill be to you t his cor.:ling u eel-: . Y o u mc?y E'.Sk why I do not recomaend thf'..t these two last should e included in the three addi tiona). men bers alrec.cl.y provided for under the o'rcler , n.n ' d t hus o bviate the necessity of [lJ1 a.JJendment. Uy ree .son for not r e cor:nnen ding such a orocecL u .re are 2.s follows. 9811
PAGE 332
-301-It in my judgment, be for the best interests of all concerned to have a Code Authority set-uu bnsed uuon the urice ... -ranges, because their ::_Jroble:-Js, at leb.st in so far as distribution is conce rned, are someuhat I attqc h here•.7 i th the c om "')lete detailed. set-up that ne nill have if your ap: )rova l is given to these tl ree nanes and to the natter of an amendnent to tc>.ke ca:a of the e.dditional As you look at it, you uill see J"'ho.t every price rFtnge is adequately taken c o .re of cmd that areas are properly rey resentedo HB Ere 9811 Vor.y trulJ7 yours, o . rr. PE..:Jtso:r .Aclministr['ltion Hembe.r I I
PAGE 333
-:.:502-I ATI 0l;AL ICCO VCT .AJ l r r i S TRATIOlf 45 B road-:-rc:>y T . Y . c . r . L e igh E . Or e As.;istcmt A d n i nistrfl.t o:r Apo f t!.'e l C o •1r::erce J1.nlding T ashingto: , :U. C . 31, 1935 H E : Lo.di e s ' H n r .dbt' . .g Cod e A uthority Dear ! l r . Or e : Sometinc at,;o I too k occr'sion t o 1oin t out to the members of this Code Autho-.. : i ty t:n.ct if L1ey coul c . not r-:.ttcnd meeting s of the Code 01:L.;h t t o res icn r:.nd t s or 1eone else to take their t:1t business o:f:' L1.e Co
PAGE 334
-.:>03-l'LI\TI O : .iili . AD1.II:I STR.i,.J.1Iv; 45 Broadm:;. y , lJ. Y . C. RE: L.L'.IH:SS 1 CODE .i1.UTH01.1I T'J LiEETili G J ?E3Ru_ ,n y 19THo 1 9 3 5 Col. W alte r De)ut y Admi n i strr t o r Textiles Division, N ational Recove r y ITashington , C. Dea r Colonel I!a n gum:-Fcbrunry tTientieth 1933 For once thi9 Cod e A u thority s tnL't e d on tirrJ e ,._..,i t h its Deeting i n steE'. d of the usun l s i x t y u inute s l r t e . I ryonder 'Th y i t i s that i n one meeting out of every four, this h
PAGE 335
-304ment of the lonr; dreyr n out quosti0 n of semi-sY.:ille d h o urs and Tiages .te r:J n.t ti..1e , by the c::Y•)Oint: 1el1 t of a second labor reure"'en tf' ti ve .. Some time nr;o, I sent o recor.1 m e ndnti' m '.7i t h r e s_yect to the of new men u:1on t his bor.l:r o let t72. S sent to either Colonel Berr-J or Le igh O:re rmd
PAGE 336
National Admini&trction 45 N . 4 • C . Col one l WRlter Mangum Deputy Administrator Nat ional Administration Washington, D . C. r e : Ladies ciaridbag C ode Meeting Thursday nisht, March 7, 1935 dear Colonel M angum : Three outstanding items came up for discussion at last night's Gode Au thor _ i ty meeting. The first is the co nstantl y recurring on the part of the Code Authority nith respec t to the stay granted sometime ago to the V i rginia Art Com"9an y . I d . on ' t know whether you are fe.miliar with the situation ... B riefl y , it is this company , through the good offices of Senator G le).ss_obtai-ned a sta y on the provisions of this Code without any know l .edg. e -on the part of t h e C o de Authority. They have a l ways obJected to this s ituatio n , and constantly point out the seriou s harm that i s be ing: done to the Inciustr:r by the Virginia Art C o mpany being pe rmitted to carry on what conside r a ruinou s wage and hour schedul e • .Again ::.he Code Authority v oices its solemn protest against this situation. The Code Directors informed the Cod e Aut hority t hat Colonel B . e . rry had 1 .;fused to r e -o"9en the rm t ter, and therefore, there was nothing'they could do about it. I think myself, the matter was n o t handled in its-early stages strictly according .to Hoyle. I believe this earl y action was taken by M r . Barr when he was the Assistant Deputy in charge. However, I am not c ertain about thFlt . I wonder if ther e is anything that can be done straighten out the matter, because it i s subversive of good order end di.scipline. . . . The seco.nd most impo rtant rnatte r was that of the bud get. The Code Authority accepted the report and recommendatiqn of the Budget Committee , and within the next few days, I expect to send forward with mlf the new budget p roposal. A t that time, I will take occasion to com 1ent _on some o f the particular items included. In the meanwhile, I do want to specific ally draw your atten i on to this. The old budget was set up o n the of roughly $135, JOO. , o . A certified auditor's repor t shows that in the nine months of the budget, they expended a trifle unde r and as a result they h a ve 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 C ode Di rectors, is a p retty good answe r to one of the ments made in the Senate du ring this past week a . s to C ode Authoritie s b eing a " racket" . 9811
PAGE 337
-:-30 6..4 It was agreed last nigh t that at the close of the fiscal year, March 2 5 , 1935, $301000.00 be returned_ to the Indus try, pro-rated to epch unit's payment to the Code Authority. This I feel is an excellent m ove, Pnd of course, will :nake a. good impression upon the members o f the Industry. The third m atter of moment, althoug h not so important in itself was the time and for 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 member s of the Industry might misconstrue the move, it was felt that he meeting should tAke place in Atlantic City. I told the Code that there will be no objection to their having it in Atlantic City, p rovided, of c ourse, tr at there 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 po i n t in going to Atlantic City, and that if the expense t hat would be invo lved \?er e not so great, a better place ould be C hict:lgo , since .it would h e .ve a g o o d effect upon the :Bag Industry operating in center. ln this g enera. l connection, I am concerned about the set-up of the Code Authority. T his n resent Code Authority's term of office expires at the end of this month o Under the Cede , certain associations were nized. Since the C ode was written, those associetions heve retired from the field agreeing in s o far es pcroi ble to consolidate their membership, in what is to b e kn oV"n the L aCii .J"' 1 Handbag Institute. Since that Institute is not y e t urcperly it is my belief that it would be wise to continue the p resent C ode Authority in office, until the ex piratio n date of the that 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 in a sense et the cross-roads, and tt is for politic reasons th8t I counsel you, if it be possible to con tinue the nresent C ode Authority for the period named above. Sometime ego, I wrote asking you t o nush forward the approval of the additionel membership. We are s till c o nstantly faced with difficulty in obtaining a quo r m for the various neetings. I wonder what is delaying this. I should like v ery much to see this approval come through togethe l with your above, with respect to continuing the present C o de Authority. Changes by you and approved by the CodE;! Directors with respect to t o o r three 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
PAGE 338
)olonel Walter Mangum )eputy Administrator ;RA Textile Division 307-NATIONAL hECOVEhY ADMINISTRATION 45 l 1 i . y. C. )epartment of Commerce Building washington, D.C. )Ubject: Ladies' Handba g Code Authority Meeting held New York, Y. ear Colonel M angum: A pril 5, 1935 Starting out to be more of a social evening a nd celebrc9tion of the 'irst annua :. meeting of the Code Authority the meeting really developed .nto a lene; somewhat trou.blesome affair. Before touching upon the troublesome problem ? r esented let me first !lear away the routine matters. There wes presented an annuel report of t h e C h airme.n, Secretary, and These reports are informative Bnd I suggested that they be )roperly put into g ood shape and whateve r 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 a gain ;md the C
PAGE 339
308 be resold at somevo:her e around 80. In eny e v ent at less than $1 .00. Since we are at the beginning of a ne w seascn you w1ll how destructive this is, not alone from e point of view but a lso f rom the :.etaile rs' snce it of necsssl.ty depreciates the value of all stocks on hend. The people hit are the $1.00 bag manufPctur e r s , ""hose p roducts e r e l P rgely !!lade of artificial leather s . It coes seem too bRd thPt on the one hand borrow operating money f rom our gooc. Unc l e S amuel and on the other hand flout the la111. r thro u g h prpctices that are wholly destructive. Of couz:se, he industry is concerned because of its possible effect u _ o n the white see son fast . . appro e .ching . Due . ;.to .. the .lateness 0f Easter it will on l y be a week or t'!'O e.fter that dpte before the bag industry will be into the nevr white season c>nci with such tactics there is apt to be a conside rabl e mortality on the uart of bag manufc>cturers, for obviously they compete. r ., . . In a round table discussion this :norning rJi th U r . of the Consumers Advisor y Board no t stationE.'d in X:!ew York, the thought was advanced that through the NRA Liason Officer the matter might b e bro u.fSht to the attention of the Fecerc>l T r a cle Commis sion or the RFC and. some steps mtg h t te taken t o nut e stop to tnis demoralizing conditiono It certc-.:n_;r oe a g reat feather in your cap if some quick action could be The Ladies 1 :=:andba. , m e t ing edj ourne d at midnight. .. , .. Yours very truly, / s/ 0 . PE ARSON 0. v'" F.b.AESON AC:mL'li Member I understand t Le industry is t.ended . n g a b anquet to M e ssrs. ittenthal and Be:;:-ko1"litz on April 3 J 'Cley ere thet both Mr. Vincent and ytt rself vrill honor L ei:r. hy your presence that night. Invitations ,.,ill bo f o r"Iard to you very C'hortly. I it is a tax upon you '''0 geDtl P men to ask your -or c senc e but I honestly believe it to be a politic antl '11'•i se thing t o Afte r all these men rria.de a gre strug this nast yeer t o tS.em:selres u p by their boot straps and hey ou l.d hav e a v e r y hi h re68r c , 'and. ic spec t f o r you tvro gentlemen. I \ ould like to see you lend them in the manner I suggest. o. T:i. P . r:-s. I think I shall have to be in ashington next• Thur.sday at which time I hope t o h8 v e a n opportunity of s e eing you. O. '.1 . P . OWP:MKF 9811
PAGE 340
Il NATIONAL :t.ECOVERY ADt11I 45 N.Y. C . MEMORANDUM LADIES' INDUSTRY July 1 0 , 1935 The Ladies' Handbag Industr y as an Americen industry dates b?ck a bo u t 5 0 year s . Dur i n g the first 20 year s ther e was scarcel y mor. e than 6 manufacturer s at a t ime mpki n g handbags and all.of these made in addit i o n a ful l lihe of leether goods. I n those earl y days the industr y as known t o day, scarcel y a separate i ndustr y . A t the -pr e sent t ime ther e a r e engpged 379 ;npnufacturing units with 1 46 and ap_ r ox i mate l y 1 5 , 000 workers. T h e e stimated capital investment is about $ 1 0 , 000 , 000 and its t otal v o lume is about $40 ,000 ,000. The year 192 7 was probabl y the bis year of the industr y , both i n v olum e o f s a l e s a n d A t that time it was main l y centered i n J:ew Yor k a n d to a g reat degree a l most wholly a . 11craft11 industr y . As a r e s u l t of the soft living end. thinking of the lush year s , 19 25 to 19291 troub l e s vri th labor began to devel op so that first one and then other manufc-c t u .r e r s decided the time had come to get away from the big city. This was the beginning of the mig ration of the industry f rom N e w Y ork, an d led to the genera. l exodus in 1 935 . Today at least 75% of the industry i s s cattered throuF,h the Pen Eng land States, ew Jersey, Pen n s ylvani a , with two or factories in the South and some in the Middle Wes t . P rior to the scettering o.:. the f pctories and leading up to it, a gener a l strike was c?lled in the late and earl y fall o f 1934 . Thi s strike was abortive. I t 'as becaus e of this first migration tnat so !nucn trouble and bitternes s ensued in the early days of the PRA. Hatred grew u p between the manufacturers and the ew York TliADE ORGAl'' IZATIOrTS B efor e those first days there hr. d been t,_...,o ajor trade organizations in eltistence, the o l de r one oeins t l e 11.sual t rade organization type, gen e r a l in its scope pnd , of course, ineffective. The other, a smalle r o rganizati on concerning itself labor and agreements. ring the days of c ode w ritin6 , a tnird pm'7erful o rganization as set p, the member s of which consisted of ruanuf?cturers. It was viden t d uring that t ime, and at the presenta.tion of a code to the drninist r ation and duri n the subseouent hea.rings and conferences that the e w Y o r k g r oup , s till being in the ascendancy, w P s bound to accomplish he eliminatio n o f the out-of-toFn manufacturer o r at least place him n a position wher e he coul d not longer capit?lize cheap labor and long The w i nning of the by Ne• : Yor k resulted i n a sharp division 'Phen the C ode A u t hority was finall y set up, it "Was an armed camp.
PAGE 341
-'31 0 -CODE AUTHORITY MANAGEMENT In the first days, after I inaugurated t he Code Authority, it became seemingly imnossible to bring about peace and fortunate it was that the indus try had selected men to head U;P. Code Authority work in the persons of l.Iessrs. Abrahe1m M i ttenthal and Max Berkowitz, assisted by Maurice ivlossessohn. I say it was fortunate that these men were selected because they had been connected with the industry for many years/ had v1s1on, level heads, integrity and -patienc e and thus were able to carry on successfully. The first named ov-ined their as manufac turers, one in his business l ooking distrioution and understanding those problems, and the other a production all the tVTists and turns of factory o-peration. _Mossessohn 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 and SUCh. men • . .. INDUS:rRY PEACE After the Code Auth ority had in operation for 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 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 nigh t and al1' the next dey if necessary, to find a ground upon which all mie;ht stend to the end that they would accom-plish the good thet c:>ll agreed could come und e r the code. That 'night session lasted until nearly 5 : 00 in the earning . It was later followed by numerous conferences v arious groups and sometime l Ater a 'further conference took -pl8ce .J-n the train enroute t o a -pu blic hearing i _ n Washi ngton. T -his cJnfer ence was continued &.'n Washington a t the Carl ton Hotel, adjourning at 3 : 00 the next morning and peace a g ree'd to and Unfortunately, -peace wes not d ecla red betvreen the industry e1 nd labor. Include d in the original cafre was a clause called for a definitio n of semi-skilled l abor. Realizing the difficulty of determining this point, I perso.nally visited numerous factories in and out of New York to see whether I could reach a conclusio n a s to where to draw the line as to skilled, and semi-skilled labor. Having f ound it impossi't l to reach a conclusion reyself, I so informed. the then and it was unfortunate that at the public hearing referre d to above the Assistant Deputy in charge eithe r did not understand o r seeming l y found himself unable o p reciate the difficulties of writing a conclusive and insis ed one must be written. This led to increasing the bitterness as the manuf cturer, labor and the Administration. ing his, the Code D1rectorate kept its head, its feet on the ground and he steering of a fair course, and a.lthoug h a genera l strike was called lasting some 60 or 9 0 days, succeeded for the yea r 1934 in bringing the industry into a better financial 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 c ost. The financia 9811
PAGE 342
-311-operations r.;ere so \"ell conducted that at the end of their first year the Code Authority was able to declare a dividend and return 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 e n g8ged by the Code Authority were 17 and the Directorate were satisfied 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 p rovisions, examination was made o f f8ctory practice and it was invariably management was at fault and the right way pointed out to the erring manufacturer so as to make -oossible without punishing his pocketbook to meet the sc8les In the large majority of cases this as appreciated and folloVJ e d so th? t the percentage oi as always high. In the outstanding wilful non-complia.nce C8ses the rule of obtaining influence 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 Administr8tors. Had the Code Authority continued it cannot be d oubted th['t the industry would have found many answers to problems long sought but heretofore unobtainab l e . Her e again, will be one of the difficulties under their voluntary code for without force of law I questio n whether industry will divulge important, necessary facts and figures upon ,-•hich offici8ls can base constructive conclusions. 80DE AUTHORITY PEhSONNEL The original Code A u t hority personnel never ch?nged. Ho rever, since the code provided for three extra members the industry insisted in public 1earing that the Administration Member should apDoint these men, to o f the Administrator1 rather than leaving appointment in the hands :>f industry. The names of these three men were n o t submitted until late i.n 1934 or early in 1935 end not approved until ar three weeks prior o the handing do v m of the Sun reme Court decision so that the three never functioned. TTEES The Labor Complaints Com!li t tee was set up but never a proved. The Trade Pr8ctice Comp leints Com11ittee VTas annroved but never really unctioned because, due to the diligent and unuBual manne r in which the Directorate operateG. through which they persuaded of l811
PAGE 343
. . 1 . .-the error of their ways violating code provisions, such com plaints were adjus ed to the satisfection of all. CODE PROVISIO.S A mistAke was mede in. the this code, it was provided tl: e Ccrl e Authority ?hould r.resent to the Adm1ni s trator a definition of the ter111 "se'!1i-ski lled11 emp loyee.. Apart from the impossibility of this determination it lead to constant trouble between.labor and employer, Parpgraph 1 of the definitions was not a s clear and as OJmprehensive as it should hve been. This, of c ourse, was largely the fault o f industry itsel f . Wage and hour provisions were, to a l a rge degree, satisfectory except for Section 2 , Arti'cle IV, 1rrhich was st.ayed under the orci.er approving the code. In so far as trade practice p r ovisions were concerned I think it was useless to inclJ.de, as ofTas du:: . e j n this and ILlany other codes, provisions respectine: retm n of And commercial bribery. Such are almost imposSible Of enforr., .. lent si11ee trH ; y cannot be properly checked. A well-.Jor.sid.ered: tnoughtful attempt was :nC'ld. e with respect to the homevrork I d o no t need t o enlerse upon the great difficulties surroundinb this particul a r o uestiono the intellig ence of the Code Directorate was broll. r ... t to in such a manner tha t C.efini te progress mede torar6 the of some of the m ost glaring evils, underpaymPnt 9f labo r the most notabl e . My own opinion is that this subject cc=m best be app:;:oac J. ' d throu-gh the agency of various women 1 s orcanizatio"ls of the countrv l o toward the time when they will insist that c:ll sources of suppJ y rrc:r::k goods to s how their origin and check such to determine mill condi 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 legislatures nroviding for thb be1 J j_ng of all merchandise. I don 1 t mean thPt such lacels noulO. o.L necessity carry trade nemes, but have identification that would. 1Lke easy the disclo'sures of the point of origine Marking is At nresent rec.:,uired uno n c.ll imported goods end I see no reason it should not be u pon articles of domestic manufacture. LABO R During the lC'lst m onths of 1934 c:md the first three or'four of 1935 a change begpn to take p lace in the com"?lexion of the labor union operating in this industryo trouble hRd been bre1J!Tin"'". in the union for a c onsiciercble period of time since the genera l strike was pret y much of a ate, if not a totAl loss, the internal fight caame out into t h e open in 9 comp l P.te of the old union mana gement. 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 ever. As a result more !Ilanufacturers left rTew Y ork and Ft number of such were hailed into the courts before the Regional Labor for 9811
PAGE 344
313-violRtion of 7A, In Pll o f these c ases t h e rnanuf? c turers ere found but h?p_ened c s tner e s eemed no pcwe r t o en force decisions h?nded down. EF?ECT 0 7 CODE An interesting sidelisht on t h e uental conditio n o f the infrustry late in 1934 is best illustrated by relating an incident that happened just prior to Christmas of 1934, Two mC'lnufC'lcturers v.rh o had n ever been reBl supporters of the rode, hE!.ppening to be in and finding out that I •;as C'llso there calle d m e o n the telephone t o ask if the y might see m e for c fev: minutes that evening . 'his I a gree d to and was told by these men that they v :ished to apologize for C1ny sins of omission or commis sion respecting the code o n their part, that t hey .ere about closing their books for the year ana were to be able to say that in their o pinion 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 o f industry were of the seme opinio n as them selves. Having reached t h e :_Joint , .. here at least o f the industry mere thoroughly sold on the value o f their code e.nd its administration, the industry was literally stunne d w h e n the Su p r e m e C ourt decisio n was handed down in the Schechter case and today are movin g heav e n and earth to get the industry to voluntarily agree to a code of their a copy of vrhtch I attach and v;hich is o n file with the }edera. l Tra de Commission. I am told that 85% o f the industry h ave elready assented in writing to this document for the r est the old Directorate , still maintaining an office on a very modest sca l e , are to e xercise pressure t o bring about conforme.nce t h r o u g h l o c p l banks, clergy and chambers of commerce or boards of trade in various l o c alitie s in V''hich such m anufacturers are situated but I recosnize t h e great difficulty of enforcement even with a 100% assent -:1i thout the support o f s o m e g overnm ental agency. In passing I may sRy that a n y steps t"-'ken to the Supreme Court decision have been closely scrutinizeC.. ar.d in s o far a s p o s s i o l e opinions sought from the }edera l l'rade Com:nissio n as t o lege'lli ty. Respectfully submitted, / s/ 0. \ 1 , PEARSON 0, 1•• P E.ARSOI-! Administrati o n Mer a b e r OliiP MKi 9811
PAGE 345
...... EXHI : r'T 0 :Eriof O!'.. B o:no Wurlc (4 Part;) . . 9811
PAGE 346
3 15 -EXHL8 IT 11 II Part 1 PLAlT FO't CGriTROL OTt' HQR;;EWORK MID AFOLITION OF C HILD LAEO R FOR THE BEAD BAG 9811
PAGE 347
-r 1 • REGISTRArr:'ICN TY l.: l!t'WAC'PURERS -----EYery manufacturer or cont:rac,:;o:-.•. irine; horne'POrkers on hand bead.iTJ.P.: or :;-heJ. '.tlsc r :.ub . -II of D8.F; :n also an estimate of tne t.:! I 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 IJtcci.. ... r;t;vEr the Code D2.rectors may also reouire tHai. a s<:;; : nnl.e of the crochet beadlHg accomp;my the sketch. Uno.n 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. nJ.d a reg i str2 t ion number will be ass: ; (:'"Gd. to such
PAGE 348
-317CHILD LABO""l Each -record of vrork -ive n to a homewor k e r must have stamued uno n . it in red ink immediately above the point at which the homeworker is re-quired to sig n for the work, the followine w0rds; " I agree not to per mit anv child under sixteen years o f age to ?erform any wor k on hese goods. 11 "'** CONTRACTORS Each manufacturer as far as is oracticabl e sh0uld not emplov contractors on crochet bei.lding . Tf, howGver, such contractors are employe d , the price fixed bv the Cod e Authority f o r such homework is the o rice that must be oaid to the hor!;eworker bv the c ontractor, a nd no contractor shall withhold anv oart of the urice fixed for such homework. "'*"' C011PLIA F C E The Code Directors, orde r to maintain the minimum wage for homeworkers and to urevent the o f child labo r in the industry, will enforce strict corrroliance bv manu:t"actu r e rG with the cOdA for the industry.
PAGE 349
HOMEWORKEP.. 1 S I T . . . . A r eement between homeworker, --------------------------and the C 0 d e .Authoritv Ladies 1 11andbag I ndustry. i agree t o o erf()rm work ()D on handbags in mv home in acc0rd2.11cc w: che rules .. established by the Code Auth()ri ty for t n e LBdies I na.n
PAGE 350
Mr. Leigh E . Ore -319-IT P ert ':' AsP istant Deuut y Corn;nerce 3uilding D. C. Dea r :.rr . O r e : 191 '7e El..,..e i n r ecei"'lt of a couy of the memor e ndurn submi tte0 i'lr. ?.osenz,•e i g coverins our u l a n fo:r the control of home'vor k . 17e have note0 carefully Mr. :'i.osenz'veig 1 s objections to tl1e "')lan 1 Pnd his re0uest for further on some of the uoints covered in the ulan. Hand-bea0 ing a nd crochet-be<'d ing a e the only home' o r k ouera tions uermi tted by our code. Th e r e rtre cto r y in any locality in the United StA.tes d nbt: .in 240 exnerienced croche t bead workers on handbags who are living rithin any convenient distance, willing to p erform the wor k in the f actory. The T)roduction of crochet bea0ed bags is so slo'"T thA t overheacl co. tR l'7ould be '1rohibitive if the work wRs nerformed in the factory canFtble of housing a 9 8 11
PAGE 351
,, ufficient number of , .,orkers to "'l)rodrLce the re11uired nrc due tion of , sing l e rnc,nufr"' c turer. T .1e unnroduc ti ve neriod in the inCiustry i s Floout fo'l!.' !;tenths in tlle yea.r . . ,o t of the beA. d ed bags imnorted by retai 1 d _is tri bu to.rs "rho sell Clirect t o t!1e f:;O the American i s not e ven u rotectecJ by a j0bber1s ;?rofi t. The beHded bA.g .industry in America h"ls not nevelo"'l)cd to , ,ny l a:-g:P ex_tent, their existenc e denends a l m o s t entire l y in nroducing tynes of bags that R r e n o t com"'l)etitive ,.,.ith foreign L 1F1Ce styles, and just Cls . soon 8S a n America n nroduc e d styl e h<1s ryrov e n a good seller, it is sent abroac.l t o be copied and. then sol d in the United St8 tes .for less tha n the America n made b a . g . Considering the unusual condi tion. s exi s tin"' in t h i s industry, it i s ap1?C:\r ent thn.t if in the indus try c apnot be maintained, it \'II70Ul<). mean the. COIW)le te. abandonment of the 'beadGd bag inclus t y i n the United Sta tes. The ryL n as sub t ;ti tted may not ,em s iTer every reouir.E?.me.nt of the _,J.gA Com.'Tiittee, but at l ee..s t is . a n attemryt _to keel) the industry exi s t ent e1nrl to g ive to 3000 or more workers a living in accordance the code Answe ring :r . "3-osenz;.,e i g 15\ obj e c ti ons c ally : An investig ation was m.t'lCie o f l1omework .in the inrustry in accordance with Section 1 0 , Article V of tno Lad ies' }:and:bag This investigation was mc:-c1e ,jointl y by the CoCle Directors and the Co:n':li ttee apnoin t ed b y the Coi1.e Au t h orit y . rel ti on is c on tained i n a brief, , CO'I!J o f which .. ":n does no t rel y unon any voluntary cooneration by the mRnuf Pcturers. 'l.ealizing tha t the wa s entirely i thout t e protection of the code they were emnloyed chiefly b y contr Pctor s , the Code Directors H n investigation of the contractor, horne orker r e l ations . They found in this the chief evil in the l1ome o r k I t 'l'la s customary for such con trH c tors to 9811
PAGE 352
-321-retain frau 2:;7) t o of the , Jr"ic ... .> • t. factu.rer G.ill che ho:Jewo:ckers, e cc-n -:...t int') effect our p lan to establish mii1imum V'IElges rate : > of o'L:.r cocle for the homcw rkers. As a ""Jractical proolern, the abolitiQn of homework in this in G.'L..S • Ol .... l( . . immec:i D telJ c::eate F. s stem of oootleg::,i ng in hommirlc , accom,_J2l1ieC. by-""Ghe vicioL1c anG. rnc:-:eteei"inb method::; corruYion to prohi'oitioi1. .. vroulc . uuy tl1e:r ovm beac..s and c or.l-.t>lete t::e br.:;s, and s .ll at prices thf't no manufacb.trcr cuuld ueet. A11•:;Vte::L1:_, ti1e specific objection rC?isul by I .ir . Rosenzwei g : The )iee e will be f.ixed on the bases---the nur::1bcr and rn" :J e.:.cls the= t in t o c: br f, e .re c . The basic price i7ill lie fixed. accor(int ; to the m . :.mber of bcal' .. s < nO. the kind of beal't;. . T:1F. i s c c lc tla. ted a cconf.ing to tl e nL'lnber of s trines of ueoc.'.s . Only in cose of nrticulnr <.es i :;n . The CoC.. e Directo r he._;_JiJens to .: e th()ro1: .)lly expe1i encec in rrlC'lcin of beacled r o me 1uf----rill have nn op _,ortuni t;y of his m •1n Porkers c o the tes lii::.1 , . We acce')t the maw.e b y Lr. that home wor E'.S rrell c:s t"1e :.ic.'n'Qfecturer shall have the ri ;'1t to protest any price Get by the Co 'Jill c a •.tse to be n ade c>n ectual test of the time re to r:e : u the article in qu.estio1 . In the ''?.tter 01 chilC:. the recorcl iil the A<.,Jninistration w i 11 sl1or: tha"'c in ana ther branch of our ( urai din : of l eP ther bags) tlle Coc.e Directors . .,ere convinc ec. tlwt chilci la.ocr v1as being e:u1C. ithout hesitation requested nnd. obtaineC:. and aG.ministra ti ve a .boli s}:ing homevork in that of the ir-'d.1 s try. If the :)oc.e f -.. me.. the t chil d labor is beinc; i n the mal"inc; .Jf beaC.ec. br-_;s , L1ey wnu ld. just as quickly acJ()lish homework in this branch oi the in0.ustry r ; s they c.ici.. in the other branch. The. of ,,.ives u;; the most concern in this plan, \:::l .. nainly oeccX.fJe of the l egc l status of the cant r[lctors. If the Code Directors 2.1e informed that they have the l'i_,ht to ab')lish c0ntractors i.n the !JeaC'.eC:. b r ench oi the inG.ustry, the problem of control of the ;Nhol e b e more simple. In thL p l
PAGE 353
-322:nee: o"l.:'r l a n , tl e contrActor is requireC:. t o '.vit h the Coue A t t_lo r.t t;y the nru .. e of ev.c h home • o r ern, l oyeG by hi11. '.Vl:e c o:::1tru .. to1 P.l s o r ecp.1.irec., to s i t; n t h e hoLlevorl: c:greeme n t t h e same cs the To meet t h e oojPc t ion o f M r . w e are wi lli:.to Elsert c;n c-c."Lt.i t iona l clc;-c•.r ; e in the ?-sreem e 1 1 t ;v} ich maL:e the .l;,luf rctl.lrers Lirectly r erpo: . s illl c f o : c wlJa . t the contractor 1)ays t 1 e hom worker. This cle .nse rti 1.1 r ea.cJ. as f o l lo> J s : 11An: J,"':11.,.fc.ct-t ..... r e r in t h e in(ustJ.'j' employ i 1 1 [' cont n stor o1 co:.t:cc:ctom for work t o be o n o r c r o chet b e a :cice :t'i z e d :for r k . II Je e}.3o c.CCejJt the r3u._; e-;t i oi'l cf . . H.or:;en7.wei r ; t o cha n t;e the req 1 : i reme! :lo1 11recorc. fon1 s11 so that it , : , ill c>l s o include the The c l:..'use 1 " i l l be c hc-n.;ec.t o read : 11:L:c::::a .. 12DU:..Fctu r o r or contraGtor sh ll keep a r ecorc. of eve:.y j o b :; i v e n out t o the ho m e,,vorl:er., etc. 11 I n the 1.1att e r o f coml.Jlic .nce , rre r e alize c l o s e :mpervision o f the ho1 crTol l:er \Joule.. u e Cci r:;:'icul t e n c costl y . Vie . e .i;Je c t , no"'vever, to c:;.:e:i.'C i ...:e close supervi sia n o,;e1 t h e m n u fc: c turer enCl. cont r ector anc t o o b t.:il. thei r s t r ict aC:h erence to t h e p L n . W e have onl y 1 4 m a : m f2.c t_,_:ccr•-; i n the ii.1dnst17, all lo c;:: te( in N e w Y o rl '..:. Ti1e r ecorC. onns ;: ::ce bei:1, J. e1JcHE.-C::. b y C o t. e A .).L1ori t y nC::. w ill be i!!ade uni forn fol' l•i of e i n c .u s try rmd c o uld b e hel d for a vio l ation iJ::' they failec'. t o c omply 111i t h < n y ]_)rovisicn of t !le plan. I f it is the o 1ir!ion of ; r . :::.ose::.1z e ir, thfl t separ;: t e e:;-;r eements ;hou lcL be s i : ;ne0. b J the m<:muf2ct ,_r e r D 8:1C. c ontra c tor>, 1.re sha l l :i."c:ve then c o s o . ' i c thc:-t the pc.'rfl,:;l"a. :OJh in the ment pertc9.i:!.1i i . .; t o ".C ho 11'' of 'orl,: cc.mn o t lJe 111c><.: e e :r.fecti v e . Y;e hav e o n l y hoped. t . d insert.t:-.; r ovis i c n t h e oulc. f e e l r e 8 tl" P L1ec. to li1 nit cr h'Ju.:cs o.: 1:o1l . 1 ( no"i 1 g thP t sLe hac s u c h e n c .•. ::;r e m e n t , J!1i_.: .t have t" c ec e:i'ect . The f c t if; the i , i( .ividual hO!t ie.7or1cer , vth o is most i'1ec! ei1tl J the housev1 ife, rar e l y cet s C'n op)ortm 1 i t;l to d e v ote nore thar. 8 . :ol..::.'s i .1 c C.< y t o he:,: howe. t o J e .;:ve ctt !t1 p t e l , t o D l s;vert h e object..i..on s r r i nec 1 1I:c . R o i "i3 -1-fl1l'.1: • <-Gaii.'lst ou ')lan for t h e co l trol of !10mevork the aboli ... ion of c h i lo. la1:>o r . :B, r.:;n k l y , T e S<'.Y thet the p l a n i s P n expc ri H o1..,ever, it i s i n the of the C0c'te Directors :vho C'.:i.' 1ccc.". "':1 the inc1.stry f'n L 1 lOH t h e c..ifficultier; tha t must be 98 11
PAGE 354
32:3 -Slll"'rnol -:.l:tcl _ to : t 1e r :.rorl<.!"'Ole. f "ee-1 t lll: t eveJ.y ooJ Jor tlmi t;y-;.;rou.h._ c the (;oLE A.tho:.: i \,::, cL.ol, th"' C;Jc . e I:irectors to sive t i ir.; .1.:-::;: -r,ric....l , rith tl":e es urtilCEi r' r1tcr n reasonc:>b l e time ls !o-:..mc t o be. , t l e Code :i..,irecto:; will so C:l"!t-_ then b _,repe ec.. to ;_:l.CCeJ.J t r . n J decisio n of the ttee :for the tot: l tion oi' hoi: e1J r"!.c in the in(ust:cy. Very truly yours, C :CZ . . I TY .Alvi: AS 1 HAFDBAG
PAGE 355
-024-D P:ut 3 Jl.l.i. . C ::-C ".::iDE; ThC; "'osi tiJ!: o f tLc -b,.\-L d.us try in .Amcricc. is one th:-1.t requires S"<)Ccin.l c::msi.:cr . t i.: m lJc c ;\ , ,so its c 0 mpctitior: i s not vrith other .Americ• n but c:ntirely '.7ith :t thc:.t is m.:.de in for o ign countries, without .. n t e t-:.. riff to prote.ct the Arnoric:.n m.:-dc oroduct. The s rstc m o f r.nkinc; b.::;'"'.coc::. b .es in J'-:_P,n , Belgium, Czechoslov::tl:ia "nd ce, mos t bo'li.e d b '..f'S " . r c m:l..de, is too well known to the indust: cy to cxrl.i 1 in d.ct".il. '"tre enti:co l y in the homos 'lnd tho t }rrce t o fi v c cc.n t s hour. .A o f 60% only :.cl cl t.to to th:rec: cents '..n h our m".LLtt:, the tot_ l five to eic;ht cents ;'..n ' our, -,)lus '\noti rr 15; t o f o r frc::.cht ".nt-. oth')r o v erne'"'..C.. ch:. r (;cs. I t is obvi o u s th ..... t t'1c lJc'"'..(.ed b!..:_; ii.1custry c exist u.."'lder the w l c r r'.te est".blishcd b y t'l1 c Cor:'.e will soon b e come extinct s n ric .n Inc: us tl,.r . At p r2scnt, the wo:::l: is L i vc..n out to ho;71e vmrkers, the ind.us try cm1)loys .:.1.'tx0ut 7000 such vmr l:c r s , in a few hundred cities "'nG. vill:.;:_:e.., , i n t e n C1.if'e r ent st ..... tes. A visit t o m:tny of the homes of t hose.. v.ri l l evidence t o wl1P.t the i ncome from this home w0rk I.!O:.ns to those i-..mi lie s , fr0C1uen tl" it i s the onl source of < < income, in m".ny c:--e s i t is !•C::.(lod. to the o r c .':'..:::n ings of p9.rti ..... lly cmJloycd .1omoc r s of t:1 c f ;mil:-"..nd the fc,'r lUA-uries they enjoy. i thout tl is ho1.1e wor::, uY•ny of L lcse f .... _:milio s . "auld. be found on the city c ' Ev o n eforo the o:Lfective G.:' to of tl-10 Cod e , lv1r'.rch 26, the prices 1 :.lL f o r no r }-:, e vE:n thou[:) l low, it wc..s r oe::.rdeC. as <:. G to these who coulci not b e e .. usc of f.:.:.mily or physic".l h . tJ. o hor. e to worl::: :in :. f ..... c trny, e v e n if such !. f'"'..ctory coulc L est'.:lis1ec: il': t .. 1c loc'.lit y o f their : 1 0mcs. Th e bE. b h".s 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 tr o one ti.,c" e r e tor t:1 n thJy 1.l.''. V b .... cn ,",bl o t o :By this ]l':l.Il no r., .... nuf1.ctu1 o r "(v"nt {:} .. 'Jf t h\; o f pO\'rer b. ,n individu."tl hur1C ?l'le 1='l.n -rill b-3 su.;::-crvised oy the Code Aut nori ty, "..J1L cnforc m on t of the .;-,.,,. ::; r to ?5 / hour '='Ut undc r the co 11l i nco d i icio of t_ c Coc>. T l c lJl:--.n th.:. t tho bo.,./ed '\ rn".nuf cturcrs ".p1oint . n irrr1 ) ..... r t i l Jcrso n or -...gel1CY to be C:.osi:.l't'-'' ' .. ' t:1c uthority, t o Ylh0!'1 ; .ll ;-... rticles given out to be u...,d o lone v1ill fi s t be submi t toe. for t l c fixing of n piece \lbrk price :_)1 t -..i lJ. r c suJ. t in ". not l ess t b.-'..n 25 hour to a nc'"'l"' .;or:: :. u::: ''-er.:-..gc " .bility. f:-.iluxo the '>nrt of a 9811
PAGE 356
to SLJ . .'"'r:i t i tom t o COPT( li r-.ncc p:i_ \..-Code. ir1' . ..,_:::t i . l ' -I, • I f :o u c cnsi dr-r t:Cl .t -, y•orl:or in o i ht is o nly C"'.11rtbl c o f f inis1li:1{:: bo-c..:-(. l:."' . ..:_s t.1'.t rct'il :'1 .95 o r e"c h , . :.nd th:.t tJ.1c prod.ucc . t l c:.st :.:.ivc s s o f t l1csl,j b t.r:s in < m eicht hour r:.::. y t o me.int'.i n ':'.. volU!n o o f suf1'i c iont to s h i s sellin.g :.C.ministrt.tivc o vorho '.d , you will I'C".lizo to produce 72 0 Ul:.i t s wo-Lcld h'..v o to em]) loy .240 such .-;o:rl>:ers. To house 240 workers requLo s r.t J.c .st squ..:.r-2 f-ct J f floor sp."'.ce. Eve n if it wore poss;_ ble to est"':olis!l ::--... L'.:nt :n l o c::> li t y convenient t o .240 such workers, " . t t .enci 1c; o v cri:e".<: make tt irrr.!.)Ossible for tho m"t.nu f::.cturc t o c:)!npctt-rri t:1 tht.; <.ncl :.t the sl.111oJ time p::t y t110 three ti :c.s .:--..s l.s : s nai d f o r t:n o im1 ortec:_ "t.rticle incluc' inc the rhoJ B::;. :B -:J Inrj_us t :c: be. c 'USe o f t1K ldnd r nr. nn.ture :Jf the COi-:1-petiticn, for the r r;:soii t}nt it is unrotectc0_ fron this competition, deserve d :en (. r equire. t11:.t it i:le e;:r-.il toC:t-1. continumco of home \!Orl: t m d :. ed r:.te until such tir-:1e tho eov c rrunont gr"'.nt to the in-dus incrc ".sed lJrotoct ion tl1roU[;h ::m incr" .se i n the t'l.riff 8n be,..,_G.ed bugs. An O..PlJlic:-'.tion for such r e l ief h:;.s been mud , in the mo.:mtime , these 7000 vmrl.:ors must co n rovid.ccl for -by industry vrho is trying to io its }>::'.rt to m!':e it ossible for Ar:leric n worJ:.::c::ce to do this worl:. 811
PAGE 357
-326-E.t"'
PAGE 358
.a.y 14, 1934 Dear I am h e re:; i t l 1 fl. co_•y of the resobJ.tis>!1 Je .sscd by t l:e manufacturer s of be:.ded o:>gs at a r1Cctinb 11cld m J ia;}' 7 . Tner e "\7ere fourteen members J:.:esent, s e ven voted i:i1 f:vo o the resolution, f o u r against, v oting. I ao also enclos ing a coTj cf tl1c t ' re(.,ort filed by concerns who a r e mostly of IJcadcd bags elso a o f an indi vidue. l from e. manuf<:1 cturer of tnc bcaclcd bag L 1dus try. T h ese re")orts a r e sent for the )ur:Josc of familiarizing you with t ile :.)articu lar ) robler.1s of this d.i v sion of the industry. K L 1dly s tudy these :=ts it is ex;ected that t r .e resolution will b e -_;resented a t the next :neetin [ of tne Code ty. 9811 Ver;/ t r u l:,r yours, Code Director Le.cl_ ies' Inc: us try
PAGE 359
-328The beaded bag n1anufacturers, a . division of the Ledies1 Handbe.g Industry, is now under tne Cod e o f Fair for the Industry. There are about 23 in this beaded bag grou:.? em,?loying about :>000 1::orl:ers who do hand-beading_, ing or hand-embroidering , a n d the wo:dc incide::1tal to t11e f1n1sh1nE; of a bag . Of the tote. l n,_unbe r of employed in the industry not more than 500 are employed L.1 the f actories, the other 4500 are in the homes to whom is given to be rro.de u:c into bags or of bags. T his homework being :)ermi tted under Section 10 of Article V of the Code. The . Code, how ever, provides that such homev -rorkers shall be paid a . t the same r ate as factory workers---35 per hour. The beaded be. g manufacturers find the grea test competition from foreign made beaded be. gs, imported chiefly from tile countries of Eelgillin, France and Czechoslovakia. In these countries .the norkers who do this worl-also ' do it in the homes, e .nd e.re paid on a . n average of five cents an hour. The duty on these beaded bags i n now to which may be added frei;;ht, i;.1surance and other char:,es to another 10% so that "ueaded bag's . i n these countries a r e produced a.t a rate equivalent to cents an hour. It is obvious f rom the very outset that American manufacturers, me. king the s ame or s i mila r beaded bags operatinc:; uncler the Code of the Industry and. paying at the rate of 35 an hour cannot long survive. After a tria l of six weeks, these beaded bag are convinced that. it is futile to try to meet this corrr:_Jeti tion, and that the industry must be abandoned as far as trying to make such bags in the United States under the lJresont !Jrovisio;.1s of the Ladies t Handbag Industry Code. Re t ailers and Jobbers in the United States finding that the proc.ucts of American manufactur ers are no t com l}a r abel in value to foreign made beaded bags have ceased to buy made bags and are now 'their own beaded bags directly from the m..:=tnufacturers L1 the foreign co ..mtries mentioned. These direct j:m porta tions because of their greater va.lues, have destroyed the American market for the American bead-ba. g manufacturers. The workers employed by the beaded bag industry, who numoer more than 5000, find themselve s unable to obtain t his vmrk, and at a time when the demand for bended bags is gree.ter t l1an normal. These workers because their ii1abili t y to work from home clepend lart;ely such earn1ng s a.s the;y c e . n obt02i n at homework:-Th eir :abi lity to add to the insufficient e arniilt; s of members of their family,< did a gree.t deal to make these ind.elJ 8i1den t of lJUblic aid. the Code for the indus try became cffect'i. ye, these weie being paid a t a r ate far belor: the J resent 3'J lJer hour. B-u.t the rate o f wnge was forced U..Jon t hem throU;;h corn:_0eti tion vvi th the foreign made goods. To ureserve he beaded bag industry in the United S tates, and to furnish emuloyment to these 5000 who d enend u uon this industry for a large of their livelihood, it is urgent thnt the manufacturers in the industry be g ranted the relief the y ask for in this uetition. 9811
PAGE 360
1, RESOLVW that the Tariff Imoorts i sion b e and is hereby neti to increase the duty rm beada d bags, as no w define d i n t h e A c t fro m to B O % and that such increase b'3come ef ectiY"' at t h e earliest uossible date. 2. that Dending action of the Tariff Impor s Division in granting the relief as1ced for, that the Cod e Authority Ladies' 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 in t h e home of the wor1(ers, mhen such homewor' is uermitte d by the Code. The present m inimum rate of 35d-u e r hour w e are sure is r esulting in non-comuliance with this urovision of the Code , because it is imoossible to race this homework into the homes of a t housand scattere d in the rural districts of at ten stat'3s. The bead-bag r ealize that e v e n with a r ate of 25t Der hour hey can only hope to comDete on some i ems, '1/!Thile with othe r items it vrould still be impossible to mee t the values; howe v er, the industry feels that comoliance with the labor urorisions of the Code can be made more effective when the manufacturers of beade d ba.gs r ealize that the y are not threatened with total eztinction. Furthermore , the manufacturers in order to obtain strict comnliance .of the Code 1 -pl edee thems elve s to establish and maintain an im oartial n erson or agency to be d esignated by the Code Authority to whom all articles given out to be made by will b e submitte d for the fixing 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 to submit an item to the imuartial uerson or will be considered non-comuliance with the Code. All wor1<": given out to be made in the hom'-"s of worh:ers will b e controlle d by the imuartial uerson through rule s and r egulations to be establishe d by the members of the beaded bag The beaded bag manufacturers reauest the Code Authority to conside r this vital -problem for the industry and that it e zem tion it asks for until such time as r elief is through an increase in the duty of beade d bags. Hay 23 , 1934 Authority Ladies t Industry: The undersigned, imuorters of beaded bags, have ca refullv studie d h e of the urouosed uetitior to b e submitted bv rou on b ehalf of h e b eade d )ag manufacturers to the ?resident of the Uni ed States, unde r the urovisions Nat onal Industrial R'3co,rery Title I, S e c ion 3e , an d find >tatements contained therein with resuect to the c0nditions of the industry in United States; the conditions stated as e :istent abroad; to the conditions mrrounding the imuortation of b ead'=>d bae;s, w r .ich mat erially erroneous, and ;he true facts do o t justifv an auulication to the PrP-sident of t h e Unite d tates or the granting of suet aunl.ication by the Pr8sident of h e ni ted Sta e • 1811
PAGE 361
We reauest that as a member o i the Cod:e of Fair Cof'l-oeti tio:., bv which a-o lication is that r e b e advised of all cnnferences, hearings, otho r ste-os with any officials r elative thereto. -qesuectfully, Gbld Seal lm-oorters, Inc. (signed) J. Newman, Maz Co. (signed) Ha;: Tanne nbaum Harry Roth Harry Roth Marve l Co. .itEPORT RECEI 'R:D FROM KAPLAN f: GORTION' CORP. I , • . ., .. May ll• 1934 Code Authority Ladies' Handbag Industry 303 Fifth Ave nue -ew Yor k City Gentlemen : I , ish to call. y....,ur attention to a -oasse d u-oon by the member: of the beaded bag division w hich no doubt will be offered for your considera and aT)-oroval , and I would like to make the following corrections. The resnlution as it stands may b e inter.-o reted that articles ou to -orior to submitting such article s to the im-oartial person or shall constitute of the code. This would constitute a challenge to the hon e sty_ and ability of the manufacturers in our beaded ba1 division and I must , ther efore, most urgently -orotest against such unwarrant. slur on our members, however unintentional. I therefore urge you to include in this r 8solution P. statement that all i ems shall b e suhmi ted to the im-oartial -oerson or -r:Jar.ty for a-ouroval e-nd m' be submi ted Defore or after the work s bee n e;'i ve n out t n the homewor ke r s . This stctement w ould permit the im-oartial -oerson or agency to ouer mor e efficiently for the of the industry es otherwise it will w i thou a doubt, at' the heiP'.,ht of t . h e s eason, -oe.raly ze our indus try on accou ; of the inroossibility to -oasc u-oon all sam-ole s which 111Til.l be submitted for within short time. I am c e r ain that no human being, no matte r how ez-oerienced he may be i our industr y , can estimate the time required to manufacture a beaded bag wit>U ac ually timing t.he m a1dng of it, unless such estimate of time be entirely arbi r a r y and discriminating in many instances. 9811
PAGE 362
At l east hours, I b elie ve>, w ould b e r e lliUir e d to dete!"tline the time necessary to manufacture the articles v uich would . b e submitted to the irn nartiaJ. uerson o r agency. These 4:000 hours o f w o r , r wi 1 . 1 hav e o b e uerforme d within montt, requiring t,h e e muloym ent of 2 5 uersnns at the rate of a forty hour r e e 1c , 25 crochet would r eauir e a v e r lar.o-e s uace and c annot b e h [ld without tpkine these worKers away from h eir active w orK. N eithe r a r e the s e 25 croc!let bec-.ders a vc>ile .ble as insi0e "?TOr'ers c-s this i n dus try i s urim rilv a industry• I also want to call to your that the r esolutinn s hould include :he stat0 ment that the imuartial uers on or agenc y w hich is to b e d e sign ated )y the Code Authority shall be with the a u urova l of the m emb8 r s of the bead e d >ag division, as only such u erson who would r e c eive this apurova l could ef:icientl v carry out the work require d , Regcrding the incr ease in tariff, I wish to offer for ynur aunrova l t h e 'ollowing namely, that w e etition the g o v e r n m ent to incr ease ;he duty t o the maY-irnum uermi tte d by l 8 w only on article s comul.et el:Y finishe d , lnd to maintain t h e nresent duty on article s unfinished a nd to low e r t he duty m loose or strung oeads. This would uositive l y be to the b est inte r est of our entire industr y , ,articularly to the 1jll1orkers, as t h e increase in duty on finishe d a r ticle s ould force t he manufacturers to finish + he article s in t h e Unite d Sta t e s , hereby creating work for handsewer s !nhich a r e e r si 1.y available a nd of which he r e are many unem'Jloyed. It would also ure v ent d euartme n t store s from urci1asing comoletely finished a rticle s ab road, so m a ny mericen workers out of and would force the imuorters to estc-blish inishing departments which would engage additional workers. The rn[-).in tenance of the uresent rate of duty on unfinishe d article s w ould e a distinct benefit tn our industry du e to t he f act tha t the amnunt of rochet bead ers availPble in this country a r e en tirely t oo few to b e able to ake the amount of bags required. The industry could e muloy all the work ers vailable on better priced bAgs , uArticularly with t h e OT t h e e r hou:.:-rate for hnme worl{ and if and uh. : m the g ov e rnm ent should low e r t he r e-t e n beads and Japanese imitation u earls. The requested increase in duty as it auoears in the r esolution is 1sitive l y useless and of no benefit tn our industr y . O n t he contrary , it )Uld be d etrimental. First, t h e increase in entirely oo little to bene.fit 1e industry and second, should the increase b e m u c h hie;her on all a r t i c l e s , lni.shed and unfinished, i t would ruin the industr; r on account of h e hig h :-ice of the artic les as consumers ultimately would find o t h e r i t erns to buy lower urices. The sugeestions I have offered would b e n efit the busine s s m e n , the cor. .sumers, therefore the entire industry.
PAGE 363
-332As a meT"!ber of the corn'littee on horr1PVTOr1r, I wish 'I tli.an'k . M r . tq. H i ttenthal for he h e he S shn n us by n g Uv the r e s0l ut irm er.d I ?TO cure thet it 1"1C) s uct hls :.utention to include or e }:clud.e .. _be .of • de rir1ent to o ,r iH Ul.:>tr y . ,' I AF-ain0 ;a7 I uTP'P Y""U to Pi '.T9 ver y consideration to my sug?estio I would be'vc:ry gicc. , Q .:tu'TI Mro A. Schenker • I Th e r equest for t his '\" U S for the uur-dose ""f statements '!lade in the net i tion ne.sse d by the :Seae in bringing in b e3. o d bags They that it never Cl1 less than O'' . The co t,te' e 0lairns hat imDorts that were i'n last year at a ct1 of 1 a .so eec:1: laiQ. ndw cos .. 9'7. Also thnt the im'oortation of bead bags has 5C% ithin the nast year. 9811
PAGE 364
333 A request w2s made that we obtain tnformatior fro m Mr. Homeyer of the Hous e regarding the r te of duty a n d h e uercen'"a e of decline )n imnorts of beaded bags. The nromise d to submit their brief in sunnort of their on)Osition to the netition of the Beaded Bag Manufacturers. 1r. A. Mittenthal Director adies' Handbag Industry :ew York, N . Y. tear Sir: May 19, 1934 Re:9lying to your let .er of May 14th, beg to s a, I distributed for 1 . I. aid Co., 1 4 E. 3 3rd St. N . Y . Citv and the Imnort Bag & B ead Cor n., 35 W . S t . N . Y. City, but hc?..ve r eceived nn wor k since the Ladies' Handbag Code ecame effective. Prior to the Code , I r eceiv e d f rom Flbout c!;3 to $6 ner dozen for seed a nd ooden bags e nd my nrofit r a nged from about 60t to $1 ner doz e n . I do not know the averag e wage m y ner hour because I do .ot know how long it takes to make a ba,e:. It is hard to sav many hours a beader works in a home . A married oman might only bead two hours a day whereas a mi ht work siz. I never had any wor, ... d . 0ne b:v children. In my opinion i t would b e a great hardshin to bead ers if homework w o r e rohibited entirely. I do not have any to make as to a better m ethod for handling omework that would give the homeworkers the wage the y are entitled to r eceive nder the Cod e . Thanks for this mat ter un with me by m ail. Yours v ery truly,
PAGE 365
Dear Sir: I take pleasure in you my an .lysis of t h e home bag industry---My on1.n1on an d information is base d 6n 3 years experience a contractor and originator. . . The cont r actor give s a money gu3-an bee corresnonding to the value of the mate r i e l he tai< e s ava y . H e beaC:.a , and sometimec the thread and delivers the finished ba.o,;s at 0he fac..:tc :y., He nays his tranF;e>(Jrtation both ways, b eside s the time required to go and come from the factory. The contractor distributes tho beads and thread from his nlace to the homework..3!'s , a nd mFmy times has '\jo t he m how to mal
PAGE 366
cannot lee.islate suuuly and demand . We cannot ere te de mand by 1 caaEo'-ort • . '1ages when eoule ne e d to obtain workeven at low ages. Whil e I have often g i en beads to mqn who e r e he so-calle d ll..,.;hi te collar" c l ss. I am myself in t his s arving cnn ractor b usiness because I cannot a d e c ent job, and I a m qui e hapuy nit, as it gives me the ou unrtunitv.to earn somethin for my family. L he manuf acture r faces twn to close his f 8ctory or the aw, if the l a m eans higher wBges, which e s the m erchan dise cost higher nd thus becomes not saleable. The wor1ce r is aui e wi, lin to be vic imized y he manufacturer and any receiut for h i gh wa es which h e did not eceive, urovided he gets something which will give h i m bread, shelter and orne clothing :or A quarter loa f of bread is better than n o n e of wages establishe d by l<'1. w . A homeworker, who with the assistance of other members of his family an ave rage 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 w ould m alce for the bag ndustry to live. It is well known to you that the in Asia, atin A'Tierica, etc. are as low as the equivalent of :l'ro'!1 r m e to t n c ents er hour and naturally bags can be imuorted from in suite of he high tariff, if the manufacture r h e r e uays uer hour, u rovided, of 0urse, that the consumer will buy bags if instead of b ein. sold at are old at $1.50. Tne increas e of imuorts f rom J auan in s uite of our low dollar nd high tariff, demonstrated that e a r e vulnerable as soon as wages en e r nto a cost, and the' same thin an-oly with Eu r oue in r egard to bags. I honestly believe that of 20 to 25 per hour would be fair and ould not the bag industry, You r s truly, I am a homeworker on beaded bags working for o n e of he largest firms n the in0ustry! At your request I have c alle d to give you the information sked for on beaded homework. My wife and self just finished. 48 dozen of beaded bags. W e worl
PAGE 367
336 . Fay 18, 1934 R EGA..tiHNG T!•E OF .R.A. LABELS HI. :BEADED RAJ DBAGS PARTLY IMPORT"@ AND FINJ SHED THE UNITED Gentle men: In orde r that an official decision may be had fr0m the Administration regarding our right tn issue such_labels, w e filed the urntes to obtain such official ruling. In the meantime , the Code. Authority will issue labels .to beaded b a g manufacturers for partly imuorted and finis ! • in the United States. Mr. A. Mittenthal .Very truly_ yours, . Code Director Ladies' Handbag. . . .. -------------19, _1934 . 1 . Cod e Authori Ladies t Handbag Industry 303 Fifth Avenue N e w York, N. Y . D ear Sir: W e a r e in r ecei-qt of a lette r dated May 18th whereby it is stated thet the Cod e Authority will issue abels to heade d bag manufacturers for bags u artly im porte d and finishe d in the United States • • W e b elie v e this is an injustice to the American manufacturers of beade bags. Y o u a s k us to -pa y a wage to vr:Jrl<:ers. You as'!( us to limit our hours of wotl(. Inall fairness to the American worl(ers, we belive t hat t h e N . R. A. labels s hould only b e s e wed in bags.that are made in Ameic The r e are a few im uorters of beaded bag s who through subterfuge are trying to h a v e labels sew e d in beaded bags that are imported from Europe, on a urete}:t t h a t they are sewing the in t'he bags ,in this c ountry. b eade d bag plate that is imuorte d from Europe is really the whole article. lining s are only a small fraction of the labor or construction of the bag. d o n o t b elie v e tha t any fair minded authority wi 1 . 1 n ermi t labels to be sevd i beaded bag s or any othe r article that is im norted frorn the other side. WE earnestly ask you to give this rnatter your uromnt attention. Than l.dng you, we are , Very truly yours. 98 11
PAGE 368
Mr. P ears n 4 5 Bro a d way 1;ew Yor -City Dear Sir: .. ay 19, 1934 please find a c opv of a n tice received this mor nin f rom he Code A u t hority, t o rnA labels to be ed into b eade d t a s , the ma1dn.c;s o f w hich are uartly imported e nd par t l r f inishe d in h i s c ountry. SDent a life time in t he bead e d b usiness, both as an imoorter and as a man ufacturer, I cannot s e e t:t e justice i n a r uling o f thi s 1d n d , since the im uort part of a b a g is whereas the finishe d part that. has to be done in this country is not more t ha n You can therefore readily s e e that t o conti nue under the of the Code AutL1ori ty and still maintain the that the NRA stands for, would be nn absolute I suggest to you b efoTe you allow t t i s .rulint; t o g o int o effect t hat you will give the d omestic bead b a g manufactu r ers a Trusting to hear fro m y0u, we remain, V e r y truly yours , --------------------------------------= r. Mittenthal Code Authority Ladies' Innustry 303 Fifth Ave nue ew Yor k City Mittenthal: M a y 1 9 , 1 934 We have a letter from y1u da . t e d M a v 18th regardi n g the NRA l a"bels bein into bags that are 3/4 manufacture d i n We m ust a sl< for your i m ediate a ssis a'1ce in h i s action a s l a bo r is uaid at the rate of from 2J to 5rt an hour in parts of Euruu e s u c h a s :Belgium, Czechoslo•rakia a nc1 }'ranee . If l abels are permitte d t o b e u t int1 hat 3/4 manufactured in under the lowest r a t e o f w e as AMerican m anufactur e r s u rotest against such a rulint; as the code d e m a nds---that w e ay 35--t an h 0ur---a s it will be i mnossible for us t o compet e w ith foreign m erchandise and ill thus b e comoelled to put out of wor t .. 1ousand s of America w o m e n no emuloyed in h e beaded bag industry. 9811
PAGE 369
-338-e sincerely houe you immediate steus t0 ur0hibit NRA labels bein uut into 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:Jry truly :.vours, May 22 , 19.34 . • • 't • The Beaded Ea.e; Gro .uu of the Ladias' Handb'ag Industry has a,sl
PAGE 370
Ma.r 18, Gentlemen : There hrs been an attemo t o n the uart of the Code Directors of he Pleatin.e: , Stitching and BoT'naz and Hand Embroidery InduRtry t'"' include beadin on ladies' handbags i n Lheir Cod e . W., have just succeeded in a sta , t0 1Jrevent this Code from interf3rina the of bea d 8 d boes . This action we d e8 med in vi'='w of the fact that the C0d e of the Pleating, Stitching and Bonna.z and :land Indust: 7 aboli!':h e s al1 ho!Ile wor1?" after June l., and wh-t h wm .lld oy its oueration stou such by the manufacturers of boadoa bags. Very truly y ours, Cod-3 Director Ladies' Industry The Beaded Indupt:br is a d ivisiori. of t he I H Industry . rhere a r e cbout 2o 14 can b e classed manufacturers of beaded oag s and 6 as im-oorters. in both classes there is a n som8 manufacturers also d o . imuorting and imDorters do some manufacturing , '3-nd others w h o mal..ce all of .their product in the' United. States. Beaded bags n r e i mJort'ed eithe r as a corrrolete or as cove r s and finished into a bag in the United States. The c hief countrie s .f rom which these oags are im 0orte d are France, Czec hoslova1da .and Jauan. The nresent tariff on beaded 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.:reat many imuorted from France come in at 90% duty, The total number of finishe d _bag s iiDDorted in 1933 were approximately 52,053. The r e are no acctuate obtainable for the number of beade d bag c o v ers imuorte d , o r the quantit; of beaded b a s imoorted during the first four months of 1934, The tota l vnlump of sales for t he industry for the year 1 932 w e r e $3 , 000 ,000. With this analysis of the industry it must be auua r ent +ha her e is a iecided conflict o f interests the grouns of manufacturers who make a bag in the United States, those w ho imDort the covers and finish the )ags in the United States, and t hose who imno r t the finished bago It is the of the grouu who the comol ete baa;s in the ':Tni ed States that t he duty on the imuorted "ba g s should be raised the full 50% allowable under the National.Recovery Act, and . also. tha t no N . R . A , l a b els should b e ;y the Code A uthority for use in bags uartly imported and f in\she d in the Jnited States. It is the contention of the ho imoort the beaded covers 1nd other and finish the bag n the States that they should be :tllowed to use the N , R. A. label since the wor'V: i n finishing he bag is ,;e rformed by Ameri an labor, This grouu does not urotest against any urouoseti increase in duties, It is tne c0ntention of the imuorters of beaded bags that lche "9resent tariff fu, _ l y nrotects the American manufacture r of beaded bags and increase in tariff is required. )811
PAGE 371
3 40 At a meeting of he committe e auuointe d by the Chairman of the Code Authority to study i t was decided to call a meeting of all members of the Beaded.Bag Jndustry for the uurpose o f a resoluti"l requesting the Cod,e Aut' h .ori ty t o . D eti tion t h e Tariff Industries Board of the • R . A. to increase t h e tarif f on bea d e d . b 'ags the full urovided f o r b y " I Nationa l R ecove r y A ct, also t o uetit ion t h e Code A uthority to allo!W homeworl!: on b eade d bag s . at the rate o f 25d P.n hour instead of an hour as urovided for bv the Code . The manufaC'turers h eld a meeting at the Hotei M cAl"Oin on May There wer e 1 4 f i rms renre s ented a . t the m e.eting. The re-oort of the committee read and eznlained. A resolution w a s made and seconded that the . reuort of t h e committee b e a donted. The r esult of the vote was 7 for the r esolution , 4 against , 3 not voting. From t h e stat amen t s furnishe d by m anufacturers, and worke rs it i s evident that ther e is n o comuli ance on the 35d a n h our r ate. The evidence o f workers, s h o w s conclusively that the have no uart in f izin g the wor k uri9es, they h ave no b a r gaining uower and generally take what urice i s offer e d tl.1 em. It is the custom of the beaded bag industcy to engage home workers e i t h e r individually or throug h the is g iven t o the individual homeworker a small s ecurit y is deManded b y the manufactur er, usually .. not m.or e than a few dollars, a sum not sufficient to cove r the value of ' t h e materials entruste d t o . the homeworkers. but more fc . u urnose 0 f .establishing r e s u o:ns ibi) . i t y . When wor1"" is giv3 n through the contrac tor is mad e r e ' suonsib l e for a}l m a t eria1s and the deuosi t is usually more ,sub s tantia,l • . The c o n tractor g ives out the wor1(' t0 .the individU1 homewo rker s , he assume s a l l r e s -oonsibility, collects and delivers the t c the m a n ufacturer, f u r nishe s the cotton to the worker, a nd in r eturn uays the w o rkers h i mself; for this the contractor usually retains about 2ot of t h e priQe he r e c e ives. Fro m evidence .furnishe d by the .contractors M ( homewo rkers the a v e rage wag e earne d b y ' the hom eworker is from 7d t o lOd an hour. The r e i s absol u tely no m ethod o f d e t ermin.ing the number of hour worke1 by a homewo rker. From' t .he sta tem ents of thes e worl{ers from 10 to l2 hours a day is t h e averaee. The homeworker s are deenly c oncerne d about the aboliti0n of homework claiming tha t it will denrive them of their means of earnine at least a -oor ion of t heir livelihdod. The c ontractors are in favor ; f abolishin.g homewor k , c laiming that it will give +hem an on portunitv to on e n contract shou s and bring the home w o rker into their T h e do e s not wish to h ave homework aqoli. shed since he cannot as surn e the overhead reauired o and maintain t . h e numb e r of wor kers tha.t he would require to u r duc e the volume o f . his -oroduct in his own faatory. The situation is mor e c 0 m nlicate d b y the of the Code Authori of the Pleating , and H and Embroidery Industry who hat crochet b eadin g is part of their Code and th:-:t the Code of their indust all ho m ewor k a fter 1, 1934. A stay has been. obtained from th urov1s1 o n s of this C o d e f o r t h e beade d bag m anufacturers on the ground tha t hey sell only the finishe d nroduct an d that the -oroduct is definitely a bar • bag, that the crochet beading is only incidental. L a b els for -oartly bags it has been ruled that labels will b e fur n i shed for use in s u c h bags ' a final d ecision from the Administrat' . ..... 9811
PAGE 372
-:::Al-nrotest necessarv t0 obtain such an has already been filed .tn tle Administration in We.shinston. The matter of rates, it is evide n t if the American manuLcturers are como<3ll'3d t0 nay 35i an l:our " ' r homeworl<, i e y cannot hone to >mnete w ith the imoorted bags. If they are ntJrmi ted to hav8 a rate of 25ct 1 hour for l:omework , they can nrod.uce some goods COT!Jnar able with imnorts. te mc:tnufacturers of b eaded bags are willi ng to maintain a machinery for ,mpliance witn the 25ct an hour rate, if and when granted. As a result of an imnartial investigation of the Beaded Bag Industry by te Cod e Director, it is th . t the asked for, a nimum rate of 25ct an hour for homewor % e rG, b e to the Beade d Bag .dustry, only so long as the y maintain and comnly fully with the rule s d r egul ations to be established hy the m for the fiY-in g -of niece w0rk orice s b e paid to on b qaded bags. A . Mittenthal Code Di.rector 1El
PAGE 373
9811 -342 -E X H I 3 I T P -------Standard Cost Formu l a Part I Code Authority Presentation Part I I Co!'JIDe:1t, Resea.rch and Planning Divisio n
PAGE 374
. -043-E XEL.-)IT P .:.Al D B A G S by M r . B oyd but never c.:.l")'ll'O V e d c. s no such were aT)proved. Never laid before Ind'l_Stry, th ,r-efore never tal:en advantage of. At the tim e S eiJ t e:nber 23, 1935, a calculation which it is nill be effective . To arrive at the cost of the 1roduct ITk"J.nufactured: 1. Figure the cost of all Di ::ect lfa teri a . l and Direct Labor . 2. To the tota l of Direct Ha t eria l and Direct Labor Cost s a d d a percentage of overhead re11resenti lt::> all o ther costs ( v;hich must ii1clude Fac to::.:y Desi g nin6 E x:-•ei1ses , Selling Distribution EX)el1ses, Admi n istrative and Gene r a l Ex-}enses. ) Illustration of the above m e t hod (all figures ? r e a ssu.11ed ) : 1. Cost of Materia l Cost of Direct Labor Total Direct Costs $:3. 25 2 . 00 $5 . 25 2. All Overhead C osts -(33 1/3; of Direct Costs ($5.25) 1.75 T otal Cost $7 . 00 The resulting fie;ure ( $ 7 . GO) r e) rcscnts the cost of the --'lroduct manufactured, and to sell i t for less than thi s ar.1ount ould be in violation of t h e Cod e . The 73 i:i.l t}1is cxarrnle is .erel y an illustratiQj.1. of Ove rhead P ercentages: The Overhead P ercentage to b e used must be by each individual concern in acco r d a n c e rri th the lar' desc r i bod 011 -)ages 2 t o 10. However, no )ercentage be used less than 33 Ex ce::;tion shall b e mad e to this r u l e b r the Code Authori t:t if t: C' me nber of the I ndustry request i n g such cxcc-.1tio r is j)re:1ared, on t o s ubmit to an a6eic. of the Cone subject to audit, a budget and b a s i s the refor whi c h w i l l narrant a lov1cr overhead figure . Also i n s pecia l circumstances o r for occasio:1s ':!here strict to the rule '.:oul d worl.: excessive lJDrclshi:;_J, si ilar excc)tion shall be made by the Code A u thori t.r shm1L1G of justificatio therefor, provided , hoVTever, a -,y member of the industry \!hose request for an execution t o t h i s i s not t?:,ra: ted by tl1e Code ' Authority shall have t 'he ric:;ht of a,neal t o the -rnA . 9811
PAGE 375
-344THE PlBPOSE O:b, THE CODE O.H FAirt COUPETITION IS ? 0 PROVIDE AGAINST UNFAIR T nADE PilltCTICES , CREATED BY U -s c:rtDP JLOTJS Nf.EANS, A1TD TO PREVENT SUCH UlJFAIR TRA.DE rRASJ:!IC ES, A r' IIii!:U J OTL'.FEAD J?ERCEl:TAGZ IS EST LISHED. THIS FIGUJ1E DOES 1:0T HAiqTTE'.ACTuRErtS W:!OSE PERCENTAGE OF OVERHEAD IS G REATER T1IAN ':2HE TO FIGURE A N Y LESS THAN 'I'HEIR ACTTJ.A.L TO p3_E.;'E ;I::;_I L1 P:iliTICULAR SITUA T IONS CE:lTAI N EXCEP':CIOl.,S AU'j:E OI\IZED. To arrive a t the correct o verhead to be added to tne tota l cost of Direct Materie. l and Direct Le .bor, it is necessar y to a budget for a p eriod of a year 1 s o:1eration. 'I'he estimr,tes o f f : gures entering into the b u.dget m "..lst -be made fro; i l records of former yea:cs 1 and eX2_1erience, and should be base
PAGE 376
-345( 5) Estimate the amo1mt of. :>rofi t that , . .,iJ.l be ; :Jade on this volume of business. ( 6) To arrive at the Perce::1ta6c of Overhead t o be used r..rhcn figuring t h e CoL t of e r . c h of bac;, determine the thLt the tota l Ov._.r 11 e a d Ex:1enses is of the combined. tota l of Direct l ; iateric.:.l and Di}:cct L a b o r cost. All estimates makint, t h e oucl set should o e reasonable. The estimate of net sales for the year should rc:->r ese:1t an amount thet the concern can reasonably b e ex::ectecl to s ell during the budget6d year. The estimates of D irect Dil"cct Labor, and Overhead should re;resent runow1ts the concerr:. mnst reasonably ex :Ject to expend for these iter, s O..uri n g the bed<5;etecl year based on the records of former yea!'s 1 o :J0ra.tio::1s 'lnd exerience , 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. on : >e.D e 11. Fixed costs relati:1g to buildings, rn. c1inery and such as rent, insLuanc e a":d taxes, and. fixed se1lary i terns must be into costs on a basis of normal rates of O:'Jeration. Do not overlook the method o:: handling L1.te r est othe r i terns described on page 11. The Standard Cost Formula sets forth ric;id :'Jl'Ov isions, but minor deviations t}1at would not materiall y chai c;e the method or results may be made . DIRECT MATERIALS Direct Haterie .ls are t o incl n.de all those materiels 1.'Thich can be traced directly L1t o the :Jrod.uct. Price all Direct Faterials f o r cost formula A.t market jJre vailing at et! W time wit' i } . thirty (30) d ays l1rior to date of sale or at actual oost if r : i "thin four ( 4) months of date of sale, whichever is lower . to this r a l e may b e talc e:.1 only u•on a nlication to, and by, the Code Authority. Incornint;; Freight ancl 1ncomin,_, cartab c o n raw m aterial arc regarded as a r>art of the Direct r :a.tcrial Cos t . The following items a r e classed as Direct 98]] Cover (leathe r or fabric) Lining Pocket lining Rubber cloth Wadding Flannel Packi n 6 material Paper Cotton a n d 1ins, etc. Fre.me Purse F r arne Zi::>j)er Hirror Fitting s Ornements :Jut tons
PAGE 377
Cement Welding DIRECT LABOR .. . '346-, . ... .Joxes Tissue ... Labels Direct Labor is to i i!Clude wages 11aid for labor :1erformed cifically. on and. char:.;ed directly to the :)roduct. An.y other labor is indirect labor cmd must be included in the O verhead Ex_'!enses. In estimating t h e cost of Direct Labor there must be included the the earning s o f piece workers fall below the minimum waE;e. • . . All Direct Labor mus t be identified from that vart of the :::>ayroll tha t is classed c\S indirect and other overhead labo.r. The follm1in..c; includes all the i terns of Direct Labor generally to the He.ndbag Industry. Any . s"lecia l or unusual direct labor or d irect labor 11erformed outside the factory such as embossing , stri}1ping, etc., should. be added. CUTTI;NG Cutting by Hand Cutting by Clicker Cutting Rubber Cloth Cuttin:, Lining PARING Parin.g Burni shing S plitting Etfi30SSING SEHING Sertinb Handle Sewing Handle on Cover Sewing Covers o n ilottoms Sewing Mirror on Linings Sewing Frame Pockets Fre.me Pockets Sevinb lining on Zi LIK INGS Cutting Wadding Cutting I n terlining Cutting Papers TrimmL15 Cottons from Linings Trimming Cot ton from Handle Serrinb on Welding a:)art Jottoms from Welding l.-:atching Covers, :aottom and Handles F.ang i n b on Waddins on Lining s S e wing to0 e ther Lil1in6 and Covers Han 5 i:1 5 on Pal)Cr on Silk for Pocket :aendinE?; Po9ke t CementinG Silk on Paper H n ging on Muslin o n Silk Tu rning i n Harking Silk for Pockets POCKE1r JOOK .o:.:u'" on Covers Hangine:, on Cover Cemcntint?; paper ancl C over 98 11 T Han ging Pa: ,)er on Silk Ceme : 1t i n c Silk Turning Silk
PAGE 378
347 in Button PuttiD6 on Ornaments Putting on Handle .aking tucks or pullers Turning in Cover DIRECT LABOR P.Al D LACING TURNING Turning Jag, Sha.:ping and Hammerin g Turning Fratne Po ckets FM.NliNG Framing P urse Fra.ming Po s Framing Jag FR.AlviE COVERil \ G Covering Frame Coverint:: PocL.::ets Covering Purse /.'I ' EXAMilJING Ai i D ?.AC K ING Trimming Thread ancl Examining Wra.p)ins i n Tissue. PuttinE:, in :3oxes Fmd Labelint:; OVbRHEAD EXPENSES Scttinb toc;ethe r Silk and Cover \ 1 ,'=l. rking Cov ers for Sewing on Handle Putting 11a:1cr on back of bag for. ba.11dle Edbes of Cover s and Bottoms Overhead e.x:_J"nses include all ex-1enses nhich cannot be treated directly into the 11rod uct. They d.o 11ot include Direct 1 .1at eric>. l and Direct Labor. The followins is a detc>.iled list of Overhead E XJ!enses classified as to Factory, Designing , S elling , Distribution, and Administrative and General. This list covers ell o f the i terns of Overhead genera,lly to the Handba:; Industry. Fixed Costs r e l ating to buildings, machinery, and equipment, such as Rent, Taxes, D e p r eciation and Insura. nce, should be included only for such buildings, machinery, , and equij1ment actua.lly used to manufacture the l1roduct sold. E XJ1ense of ma.inte ,inin g and :1rotecting buildings completely closed and equi : 1ment COID:"• 1 l ctely i no)erC'ltive i s to be excluded from Overhea d Ex:1enses into the Cost Formula. Salarie s o f should be included in Overhead for the of the Cost Formula onl to tb.e extent of a rcC' .sonable amount, te-king into consideration the s i zc and nc.ture of the business and the of such salaries of e .nd chief 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
PAGE 379
A. FACTORY OV3RHEAD Executive Salaries (Pro&lction) Super vi sio:.1 ( Indirect Labor Floor Joys Salaries Jag Re}18.ir Man Factory Of 7icc Buyers Salaries Receiving Salaries (Direct .1a terial s ) Stockroom S . '?.la.riee (Direct I.1aterials) Foreig Buying E::>..'}1ense (For Direct ! . . . at erial s) Factory Su:•plies (Oil, BeltinE,, Pe.ring Knives, Heedles, Emery Wheels, etc.) Dies, Small Tools, and Parts Machine Machine Rentals Roy alties De preciation of Machinery a:.1d Equi : 1ment on completel;r idl c raachinc1y and equi!Jnent) of Factor:r (Exce:1t on idle buildings) Amortization of Leasehold I m 1rovemel1ts on com1letely idle improved Porters Cleaners Light Fa.cto:::y Heat Power fa tor FactorJ Trucking R ent -Factory Local To.xes Power House labor Insurance -Fire, M i sc. Protection E lectric, Payroll. Watchman Salaries Factory Traveling Ex')ense Sundry Factory E)\?ense B . COST OF REP .tir ' s TO JAG S Repairin6 of bags he. s a lways i tern of considerable ex;1ense to the industry. actual c ost of labor and materi a l s in r e ?airing bab s togethe r r r i th a : 1d fornarding charges (two ways) is rarely if ever, included in the original costs. Nev ertheless, in som e cases, this i tom amount"' to as much as 2'Jb of the s e .les. It is im:_?ortan t that this i tern of e:x;,1ensc be figured irl the cost of the ba5 s as an overhead -9811 The following i toms go to maJ:c UJ') the cos t of repairs: Cost of Direct 11ateric>ls used for Cost of Direct Labor in EJaking Handline; o f rel"lairs -clerks, etc. Forwarding charges f rom and to customer Tott' .l Cost of Re:ye..irs $xx XX XX XX $xx
PAGE 380
C. L O SS ( M ARKDOV/NS) O N I NVEFTORY I t i s n o t .musua l :fo r r'. :1 . .-.ndb;-.u r_iu..1."!L.t.f-:c.:turer hr' . vinb ?. v o lum of s a les of $500, 0 0 0 d.urir 1 l; the t o find. " . t t 1 c end of the year n inventory on hr.1 1 d m nountin0 t o $25 ,000 . Thi s i:1v e! 1t o r y v d 11 j')rob::.o ly consi st of so:ne frf'. mes a n d ornrunent-s which C".n "be de: -')r eci..ted .. t l e:\st: 50 cent immcdi:'..t e l y :--.nd e ven 7 5 ner c e n t if to be sm" .ll qu:1..ntities. The lent 1er stock i s usu-lly i n fall co l o r s , i n uneven color f'ssortnents, which C".l.1 be 50 per cent. F inishe d goods invent o r y o n usur'..l l y consists o f the ler.st cles.ir<1ble styles in broken color .".ssortments which cr.n te from 25 t o 50 per cent. It i s s..-.fe on tho " . v e r <'.ge, ther efore, f o r n:ny ITI!"'.l1Ufr.cture r of t o 5 0 l)er c ent d e p r e c i..,,tion o n his inventory the end of the y e!"';r. Unle s s t h i s , item: o f $ 1 2 ,500;.l. b :ss L q i n ve:1t o r y i s figur e d int o the ori g i n r. l cost it i s m o r e t hr.n lil;:el y t 4:. t nh".t i' ;ne-. rcd to be E'-:profi t<'.ble :re".r mr'. y res1.1l t i n r'. n un1rofi. t.".bl c yen r when t h e loss in inventory i s ch.".rged i,g.".ins t the .:1rofi t F o r ex['..rrrpl c : I n v e n t o r y $25,000 Less de:Jre c i -".t ion 50 )e r c ent 1 2 , 500 Vn.l u e of o n $1 2 ,500 Tot ..... l $ 500,000 Estimr t e e l Profi t $ 1 0 ,000 L o s s on i n ventory 1 2 ,500 Defi cit $ 2 ,500 o f loss on s ; . los Th i s mny v.r y w ith different ty-:Jc s o f m:-'.l1uf;'..ctu r e r s 111:'"!1-ing different k i nds of b"'Is . With s o r -1e, the i n ventor y ID''Y be .:--.nd the :percentF'..6e of m ".r k do vms l o r!e r . :!!'or e:X''.m-')1 e , ['.. mr.nuf" cturcr mry h-:.v e r>. $50 ,000 ory wit h ['. rn:'.rkd.O\li1 o f onl y d e)1cnd ing upon t h e kind <".n d n .'"l. t u r e of the inv ento r y . The }lrlnci v l c involved , however, mus t b e i n eve r y c .".se. Er•. c h s i1ou l d c ."rcfully study the condit ions i n his o w n p?.rt iculr r line . D. D ESIGF OVERHEAD Executi v e Designer s 9811 S<'.mpl e _.-1r>..king Sr..l . ...,. r i e s S;'..mpl e dr t s RD.w I v lr . t e r ic..l s used i n Desi t;nint; P urch!"'. ses of S r m;_)l e 3t'. g s Sundry D e s i5n ins Expense
PAGE 381
E . Executive ries (Selling ) Cormnission s S::.lesrnen S n l csmen ' s Loss on S 'lesmen1s Auvnnces -350 -Showroom of Lensehold Im J;rovements Selling AdvertisL g Advcrti s r . l..ri es Roy"'.lties Auto Ex-:1 e:1s c of Auto ... Rc 1 t sellint:; Light -selling Sundry S elling Expenses I F . DISTRii3UTI01T OVEREEAD Shi: J : Jint:, S<'. l nries Stockroom Snlnries (Finished '"'nd P:-eking mnteri . ..,,ls Freight, EXlJress, Trucking, P r .rcel Post, Co.rf"'.res Outwl'..rd (Shi:J:1in& Sundry ExJ._Jense G. ADIID ISTRATIVE A P D GENERAL OVERHEAD Executive S n l n .ries Office S:-l ."'.ries Insure1:c1ce I'..Ud Office TeleJ;h one :-.nd Post r.g e Auditing Fees Legnl Fees Dues f'..l1d Subscri'l')tions Rent Of fice Light Office Electric Protection Code Authority Assessmer..t s Ex:1e:c1se T axes exce)t I n co m e Provisi011 for Doubtful Accounts or B.::d Debts Written Off Credit n1d Collection De:;;>recir tion of Of fice Furi.1i ture. n.nd Fixtures Bnnk Chnrges Sundry Gener.'"'. l E XlJense ITE S NOT J:!O 3E I NCLUDED I N OVERHEAD OR I1JCOM E I TERES r oi :JORROWED i < i O TEY I n t e rest on rmney borrowed should not b e included in costs, but for this ) Ur :)o se s!1!'.ll be considered t'. S r . nono perP.ting ex:_Jense due to lr•ck of sufficicllt invested t!'.l. LIFE Ow'1ers, C h ief E xecutives o..nd E111lJloyees Premi ums on the lives of ovmers r .nd chief exccuti ves, or on life insurance for emJJloyees, must 11ot be included i n the overhe;:, d eXJenses but for this pur;Jose should be con sidered as r non-o_Jorr.ting .ex:nense. 9811
PAGE 382
--351-FEDERAL, STAIJ:IE, LOCAL TAXES AlJD EXCESS PROFITS TAXES These must not be included in the ovorhe".d but for this ::_1urj)ose shc.ll be considered <'.s " ex. )e:1se. DEFERRED EXPE11SE such "s insurP.n c e , d for i:1 the period under budc:;et, but pD.rtly to future period, must be to the budget period. DON ATIO N S 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. INTEREST O N I JVEST1.1EN T Inte rest on owner1s investment or QUst not be included in tbe overhet'.d expenses. IIJTEREST EARNED Interest Eo..rned should. not be include .9. in o:)err..ting income, but shc"..ll be considered P . s ::-. income due to h<'..ving sufficient CE'.pi te..l investe d to secure this income. NON-OPERATING I NCOME A l ill EXPENSES Any unusue.l or extraordint"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 items r>..re cl2.ssed n s "Other Income" c:.nd "Deductions from I:ncome11 r.re to be omitted in the Cos t Formulc:.. STANDARD CALCUL.ATIGrJ S:H::!BET It is m2.ndc .tory thnt er".ch m.".nl.lfl'..cturer kee) detP..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 Code Authority h".s .r. stPncbrd form of cc:.lculation sheet, n. sP.mple of which is shown o:.."l the following These Stn.nci...,rd C2.lculr>..tion Sheets shoning the detr-.ilcd costs of e<'..ch style must be t". Vt".i lc.ble to the C'.uthori zed r..bent s of the Code .Authority upon request. 9811
PAGE 383
Code Authori Lr'.dies 1 H.:.'..ndb, . g Industry SKEmCH 9811 STYLE 10. Descri ,..,t __________________ _ ----------------. ------Cover .... ...... . . .. •••••.•••. '1li' Linilt ........ . Poc'.::e t Linin6 Rubber Cloth. F1rn:c1e1 3r<. cl::i n.; liat eri r . 1 P rller Ce men t Welting Cotton nnd pins, etc. Frr.me Purse :irrnne Zij)-'-)er i.iirror Fitting s ......... Orn..,ment s 3uttons •........ . Boxes Tissue L,.bels •...• TOTAL C O S T OF l :IAr:::ERI.A..LS • • COS T O F LAaO R Fo rw<'.rded from reverse side TOTAL DIRECT COS T Acid : OVE 258A D E:;a?EJ.JSES ( ••• of totR 1 Direct Cost)
PAGE 384
-353-TOTAL COST Sellinf,; Price Less Discounts Allowed Pet Selli n g Price PROFIT "r' •••••••••.••••••• GRot.JP OPERll..TIO-ClJTTEW Cuttin.:; by hand Cuttin..:, by Cho,.ner PARING Ei.ii30SSING SEWIJ.JG TUID ING FRA.l'viHTG FRA.IviE COVERING iAKIUG LIN INGS POCKETBOOK WORK 9811 Hnnd GrC'.der Rubber Cloth Cutting lining Cuttin g \i" .ddinb Cuttins I n t erlining Cuttin>--::J • h' I' .DUTi. U S 1ng s .-)li t t ilP' Embossin,: S c\'l i nt:; l1<'.i1 d l e S c\iL1b h:-,:.lclle 01: cover Sev1int.:. covers Oi: 'bottoms Scwiil6 Mirror on lining s Scuinb me .1ocket s lini11,_ .. to.;ether S evrin .; on )Or Trim mil':.; cottoi.l from lining s T r imminG cotton from hn:1dlc Scv !int; on Woldin:-s Cuttinl= ::-:;fll ' t 0ottoms from llolding M<.'-tchi cov0rs, bottom r-.i...ndlcs Hfl.i1ginr::; 0 , 1 W!'. dC.ii1c; o:1 1 i nin..;s Sawin_ top etl ;or linin, .. ;'i.ld .. l)(I .E;, <': d. h fr;-..me Fr<' . m in.b -1urses Fr mii1 t; Fr;:.min ; = . b<'.•. Cov erin ;; Frm:ws Coverino Poc1:ct s Cover in-Purse H<'.nc;i:1:, on oi silk for 1JOCket Cementing sir on ;r-;1e r Turnii.1 '. in -)ock c t 13 e:,1clin,::. 110 ckct Hrmt; i n b on muslii1 on sill: for -.1ocl:ets covers Hf'..nbinb ' D cover Ce mentinE6 on cover
PAGE 385
GROUP PDCKETJOOK 'fORKcontinued. H.A.ND LACING • E.X.AlvliN IEG A N D P_ CKING • -OUTSIDE LABOR TOTAL DIRECT LABOR • • ._.. 98 11 -35:1-0PERA'I'ION i n b uttons P u t t L1J; on ornnment PuttL1; on h'"'.ndle Lnki n b tucks or ]1Ull er s in cover Ht'.ngin6 on silk silk Turning. silk silk and cover Marking covers for sewing on h.o.ndle Puttinb 10: 1er on br'.ck of bnt.S for hc:..ndl e sewing r:Lorimrninp. ed,2:es of covers [l_,nd bottoms lic-.nd' J4:.cin g thread examining, in tissue,Putting in boxes f'.nd labeling :E'ORW.ARDED TO FIRST PAGE STAHDARD CALCULATION SHEET •
PAGE 386
i Ji:MOR.AlillUh1 TO: FRO 1 : Su13J E CT: ?vir. Lei_;h _,. Ore, Lee. t!:lcr Section, -355Fcbr 'l"T'' 1 , .Assi s t<'.nt t y Aec.1i : i strc.t o r Orton W . Bo., d , Cost Accounti n G Un i t , Researc h and Divisio1 Lc:.dics 1 HC'.n d'bttt:; S t ttnd..;.rd Cost Foi .. !:tl.: lt\. : This formula h<'..s beeil sl,_ b m i tted unde r the -)revisions of Article VI, S ectioi.l 8 ( i) and Article V I I I, Sectioil 1 4 . The firs t sec t i o n em'lO W c r s the Code A uthority t o r e commen d the un.ifOI'm COst and/o r P..CC() m t ing syst e m for C<'..Ch d .ivis i o :, o f the i n d ustry_ Yrhich, u :lon by the A drni nistrP-t or, sh;.ll becom e <'.. pc>.rt of the code. Ar.:y o e m b c r of thC' i nO..astry i s 2_)Crmittecl to continue the usc of his current cost or system that s elliEg estim<'-t cd. by t h e usc of th"t s y s tem sh'"'.ll not be less th..,_n t h e cos t o f the a r ticle d e term ined i n <'Ccordc".n c c with the f'. l ) -formul<'. Article VIII, S ection 1 4 sr>.lcs bclo indi v idual's cost a s com pute d b y the Uiliform cos t sys tern. Excc:')t i o n s , ho\7cvc r , a r e :<:,r ante d fro .. J t h:-'t r u l e f o r the :YLl.:< ;ose of !':'lc ctine:; corncti tion of another memb e r who i s not sc,llin. bclo ., his i n dividu.. 1 cost , rmd for clca r Bn c c distressed etc. The Fn!rov2.l or of t h i s wo:lOS;'ll i s "'-!Ilr"ttc r of Adrni n i strati v e J!Olicy, i n ., s much t'..S i f i t 'ere to b e ":T >rovcc1, it would the C'. bove cited o f the Cod e of F"'.ir Com pcti tion, e a c h of wh ich conflicts with lill.A ,"lolicic s <'.s forth in the Office .ie.nual. I n P . n y event, t h i s llrO!)OS:-'.1 is <'-n device for the effectUc.'l.tion of the no -sellin5 -below -cos t f o r rcPsons rs follows: 1. According t o Pa(;c one, the m i n imur.. <'..mon:1t o f ovcrhcnd to' 0 c used i n the determinc>.tion of u nit costs is 3 3 -1/3)& o f the direct cost s (Illf'.t erial, c-md direct ln.bor). A n cxc e ytio:1 t o t h i s r u l e i l l be :)cr mi tte d b y the Code Authority if "-ncm b c r of the industr y rcqucstL16 t h e s2.me is i n Dosition t o dcJnonst r<'..te tho f<'Ct th...,_t h i s <'..Cturl o ver head ex-_?cnse is n l owe r : . •crccntC"gc of t h e chrcct cos t s . ':2h i s ) r e vision conflicts with Office L'cmor<'..ndum 228 3 which no cost r.ccounting system s h..,ll sug_est d i f fcrcnti, ls or _)crccnt:'..gcs 9811
PAGE 387
-356-which ould tei1Cl co bri:L1[:; rbou.t <'.l'bi tr<'.r y u.n i for:ni ty i n costs. I:-1 other vrorO.s, cPch of the i::.1Ci.uatry should corrr,iute his o vm over he:"'.d Oc! t 1e D [\S i s of h i s own e:;;::1erience. 2 . The method or o v erher'.d to unit costs <>s :Dercent['..ge of cost i s obsolete sho11ld. :.1ot, therefore , c-:iile.!'.r L 1 2. cost C'CCOwltin::_. system to be . " . T)roved by the A d ministration. I w o uld suc:;aes t thnt overhe<'.d b e 1lied. ii1 .. li1i t cos t s r:,s o f the direct ln.b0r cost, or r>. t r. , _ i ven rr:,J.:;e _ ;')er direct l abor hour. I would t h E use t'f the seconcl. f'. l ternati ve. 3 . Accord.int:s to ] J ac;e five , direct m"'teri1'.ls shr.ll be che.rged_ into costs o.t the In.c'l.rJ :et j_)rice <>.t rm y time within thir;ty days 1rior to the dc."'.te of o:c ;:.t ['..CtUo snl restricts the o f t t w 11 cost ('Jr :mt"l. rket, whichever is _lower" _ _ .r ule b::_ Office Mert_g:f_'p.i1dw-n 265. .A,n indi vidunl mr.nufn."cturer should be to chE'..r : _ . e his I c t eriP..ls into a t P..ctu.<>.l cost, rcbr.rdless o f the c1c:.te of of those mat eric::.ls. N o doubt, the Code Authori L'"1 s se. l v!i shes to Jlrevent a rnanu fc:.c tu.rer from C'.l'l o].ci invoice <'.nO. 8-l-:-.im t he. t the billed the r eon were 2.ctuRlly ern:-"lloyed L 1 m:'.nufP.cture of the bC1. g in question. The followi n g .revision o f C ocie Au;th9ri t y 1 s p rOJlOsal would brine it into hc:. rmony w ith Office Mer,1orandum 265 r:,nd the sr.me time t clcc CP_re of the si tuc\tion which the Code Authority h a s ii.1. mind; "Price all direct for the cost formula a t original cost or a t the mP.rket _)revrdling r>.t c1"'.t e o f whichever is the lower. A member who c l aims tha t his rc:..w mr.terifl-ls were 'lurchF'.sed four months or more prior to the dA.t e of the must b e ' i -ro'xtrcd to :)rive' his contention from his :)erpetual inv onco:-y or simile.r r -;cords. Otherwise, it is assumed th .. "'t the first m0..teri r ' . l s } ll.lr chc?.sed were used in the mP,nUfC'..cture of the e nrliest lots of b<'.gs." 4 . L1 order then; m y be no confusion, the follm'Iing stE'..tcncnt should r.ppEoe..r immedir t ely below the c a:Jtion "Items not to be ill eluded in overhee. d or i ncomell on P P .ge 11; "The item s shown herein shall be excluded in the determinF'.tion of the costs below vvhich se.lcs shr'..l l not be mad e . 11 5 . Accordin._, to Pa._;e 9, the cost of re-)r:,irs t? shall be included L 1 the f;-ctory overhert d e)\'lense . Many cost n.c.;ountl,'l,nts would insist, with propriety, thit the exnerfue of re'ID.iring bn.gs should be • Co • ' l1sted c?.s Fl. sellinc:; A.dmintistr:--,ti ve• ex;lense. The incli vidu, "'.l IIk'"1..nu----free t o iilclude t he-cost of within thC1.t c l assific;-:,tio n , with tho :mderstC'..nding, of course, b. pro of the f actory shoul d be added to the items listed o n P['..be 9 . Any ii1c0me derived from the of b['. g s should, of course, b e r>..:i:)lied ag['.ins t the cost o .f for the of cloter1 ining th-"' c-m:::mn t w hicl 1 s hould lle inclnded in f r.ctory overhead, or in the <'.dr ::lini s trC' t i ve r .nd sellii1g eX2_lcnses . 6 . According to Pace 9 , the "deJr ecintion" of the finishe d goods inventor :"'. t the close of the fiscA.l ye:"'.r sho uld ['.lJ:)C'.rently be f i::;ured 98 11
PAGE 388
-057-L1 the cost below v:hic:1 JTll'l.;be JW,de. This lrovisio1 is obhectionable inPs<'lnch as it \'lOUld te:r2d to int:. odcc losses of <' S"')CCUlP..ti ve nc:.tu.re vri thin the cost belovJ vthich s<'..lcs ITID_y :10t be mttde . Furthermore, tl1e :)ro:>o s::.l mp}.:es <'. st::.t eme.1t :1hich conflicts vi th Office !emorandum 2283 , m:.mely, 111t is s.:..fe on the .vcrr>..6Cfor any to figure fifty per ccn.t dc:lreciatio:n Oil his inventory 2.t the end of tbe yen.r.u 11Dc:)recic>.tio:l of L:.ve:1tory11 <'. s used refers to the loss of v.-:..lue in unsold merc:1C'1nC..ise attributPblo to styl e chrngcs , bro1ccn or lots, etc. 7 . T:1e followinb r .ddi tio n e l restrictions c.;:d exclusions from cost should be Illc.:.de r . ' )r..rt of the formula: ow:a: d w 9811 P... AT ' .. y c.mo-.....nt of depreciation shown o:1 the books i n excess of th.1.t allowr.ble for federa l income tnx :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-.ble cost, b'...J.t ;-ncr ely P.n estimrttc of uncertf'.in eventualities, is to be included. c . Recognition must be 5iven wherever necessary to the influence costs of differences in ITJ['.rkcting methods, customer classes, and distance from the point of delivery when goods nre sold on Q delivered basis. d . Losses on the S{1.le of C['.pit{1l e.ssets su.ch <'S lend, buildings, equipment, etc . , shPll be excluded. r; . PurchPse discounts m:'l..y be a:lJ)lied ns R reduction of the cost of the commodities or cqui)Jnent bought . f . Holdins devices or rcl ... tion shou.ld not .Jermi t P member of <'!1Y ind_ustry to evade tl1e sliri t and mr-1osc of the no-selling below-cost )revisions. g . I n the event tha t <'. member of Rn industry engages i n other nctivitics, his indirect costs be to t11e scvcrnl clPsscs of :1roducts on a fFdr or equite.ble b2sis. A cost accounting formul2.. v1hi ch Drescri bcs such method of <' llocr,tion should not conflict with the simil2.r rovi sions of e .ny other cost finding method which mny, in <'.ll probability, govern the accounting methods of e-n i ndi vi du<'..l r o due cr. ( Sle;ncd) ORT01T • BOYD Orton Vl. 13oyd , Cost Acco Unit, Pl!.nnin6 Division.
PAGE 389
-350-Erief Sty l e 9811.
PAGE 390
Section -359-II PRCGRK.i * * * A deci sioi! o'n t:le I.e:1c'mcn t to the 8 d e est :.bli s:1 i:n{ protection f::".inst _pire:cy,. A selection of eithe r of t!10 two Methods (...,_) or (b): ("-) Design is hereby declued to b e "'n unf"'ir method o f competition. T"ne te:::-m 1 ..., s us e e l l:lerein, s ignifies designs "'.rtistic or orn"'.ment1 -nd not o r Jo member of the sh." .ll or or Cr'.J.,e to be o r copied, design in its tio!1 t o ?'l:coduct o: inc.ustry, without tl:le c0nsen t o-.1." tl'.,_e o 'Tne t f f _ r reo , 1 : 9811 (...,_ ) A \''inr, , '•)flOtOti,!':'.:•.< o:. m0c"el of _...,id ci..e<>i[;:1 l1''.S been rec,ister;-:1. vrit!:" c.isi..ter c s ted :.C. "':._.CllvY to be desii.:D"..ted by the v.ci th L1e v1.l of the I:1 r e , istering _uch C.:.esicn, the registro..nt sh"..ll i-cle...,rly t' e T•" rtic'l.t.l' r or ticul ..... rs_in 1hich is ori-_,il .. L. its ..... pplic"'.tion to .ny pro{uct of tf:e inC:.ust_y, i:'1 "JC .ition, submit ..... sw o r.1 ::ent i:_ he certifie s t "l" t to the best of h i s l;:-1ov: l edge -.nd b elief, sucl1 c..es ig11 is L: f " .ct oriL>in"l ".S "fores".id, "::ri sh...,_ll specify the d".t e o f co:1ce11tion of cuch design. Such 0 i si:!teri?stcd ..... nd ..... rti;. l "'.:,ency <>h ..... ll .".ccept desi(:,'n subwi tted for r ec;istr".tio n "'.S -fores".id., ..... nd. slP.ll issue r . o:' TC'5istr tion to t::e re.:_.istr".nt. (b) de ig:l or s...,_ id. " rticle to "',lie.: s id G.esi g n is o:;: L;, Yi:1ic.: s. iC'.. ce(" i {,;1 L e _.., odied tne ,:1 rk 11?..egistered FRI\. 'esign11 o r 11Rcc; . 1'-A Code "'.nC the d"'te of (c) Provided, of ".11J t'R of the r2of . ( 0.) .An Arbi :bo"' r d ..,h ..... ll De t u:p to rettle b y in Cesign or priority of 1mder & i stere d c . c s i6n • After " .11 no ... (" i ble effort h"s oee:'l exerted to :.mic"ol settl e sucl differences, tl:c Arbi tr"..tio::.1 :So'.rd 11 subr' i t to t:1.c A .mini t r--.tor in vnitint?; .e :1t setti1 , t:-.. e f".cts : •Jt:rt L1i;, u tnereto, v1ith to Lc cesired " .ctio to sach (e) this Article VIII be con strued to libi t Lle lJr otectio";, .... _:'forc.ed. to c.csi :1ers or 1'1 ..... nuf ..... cture::cs L1 1espect of cesibns u::dcr exi..ti:.t::. lr.\'' •
PAGE 391
-360(b) '.Ihe C0G.e of C or:1:oeti ti0::. for t:1e Le.dies 1 Industry be D.lle.1c,e,.:.. b:,. L:sertL1(, L:. saic1 Cou c provisio:J.: Section 2 : (a) The Cod.e s:nc-l l est•"'olish ::-.:-:G.. O}l terr.s c.'.i.1d co:1C:itio:1s lr,. it, e . Tureau for ::legistre.tio: 1 of Ori.-Ll<.l Styles a.::.( for }Ju.rnose o f defit.L {__ P.:'cl pT i ori of ovv-aersh i -, of such 2.i.1d. to be faci e evic" ence of L 1 e orit; i:;. ali t y EG:d for a d not i n excess of six 'Tio;.:ths frau the C:u.te of recistratio11, of saiC::. stylws a:.-,d-desigAs. (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 register wi t h sai d bureau any ori[. L:al desiE;n he hD.s created. (c) It shall be a:1 u;1f2.ir r:1ethor c of tio;:. to mal:e, use, sell, or a dvertise ::). co---.;) of 0.Ey orici ::.c:.l s t yle or c.esig: 1 of so rec;istere0., or to c ause same t o be c.o:c1e t::te sai ( s i x moi."lth ii1tentio;.1ally and with --l i o r a;:.C.. without lice:1se t herefor ;:r<.::.tecl. by the re.::;istereC:. O'.T.er of tJ.1e style or (d) A substantic:l r esee1blan<;e of the alleged. copy to t h e re.=,isterecl styl e or cl.esi g; 1 sha.ll constitute pri ma fe.cie eviG..ence of an intent to with prior thereof. (e) T:1e cost of the -('lrovisioas of this sec t i o:1 b y tl1e Coda Aut!1ori t y shall be borne b y those Ttlember s of L1e inci: 1rtry v•ho register tl eir styles unc!. C.:.esit;ns wi the bureau nerei n J:'!rovided. A registration fee mP. y be b y tD.e Cocle ..t--..ut:1ori t y sufficieilt to cover such c ost. (f) T'.:e rovisio::'ls of section sJ.m l l i10t -becone operative u:.1ti l the ru.les rec.uL .. tions :)ro viO..ed for i.1erei!1 h3 .ve beea c:.d optec-:_ l)y the Code AuL1ori ty Emd ap by the s trc: t or. (.c) Rules a : 1d rec;ulations :1ece , for the A wninist:catio:l of t:1is :wovision of tl1e n2.y b e ado:pted from tine to time the Code Anthol'i ty subject t o w c v a l the A violation of said rules and ret;ulati m s shall constitu t e a violation of the Code . All attempts to obtaL: J..i'edera l l eG,islation }Hohi b i tL1;;-, piracy :ave so far -i)een Ui.1succes sful, existi!1G laws do :1ot a}Y)ear to -,y oviC.e e.Cec1uate protecti o!.l for c esicns. Coc'.es of Fair Competi tioi1 com1)letel y c:tmnge t!1e si tL.l.".tion. l) Coces na::e the protection selective; tl1..1.t is, i n.custries v r ishing tectiOi c 9 n obtain it; <:mel i n cu.stries -,}ic'll cl.o not Hant it are i10t 9811 .
PAGE 392
-361-compelled t o accept it. 2) Any i dustry inc r_ oratii1C a design piracy j)rovi s i on i n ::1. Code secures legc!l.l once tl1e Code is a:oprovcd. 3) The inC:.uc.try i s frt:Je to et 1.:p Lt its orm rP..n:;::s or coo--crativ"ely the re. istration . :c:,_cl L_ery to obtain actu.1.l ":cl conrplctc : rotection. 4) Arbitration can be used tl) insure j:cst and. speedy set.tle met 8f ;:,.ny controversies involvinf_, '1rotectcd Section 3 : The :"ro' lera J i' 'Jrotectio:::l. i llot or..l-;,r the affair of com petitors withi::1 J.n The oriciator of the design, the seller an(, Ule:.Jublic ;:.11 hav e c-.n i:;: terest. a cei1tral registration bureau c ar.. all of the e L.terests. '"he in.0.ustr J sets its ::>vm bureau, it nn: st work out tnc stm1G.arcls, e j)rocedure cC:.. til e :-.1et!10d • Mos t imlustries have not the e:;;::perts to clo thi s . C::msecue:1tly L1ere v.roulC. be a varict., of met hocls < .. mG. rricl.e re:r:.ce i!-1 me: effectiveness. can be L: : central ret_ : i st:.:at ion u . T' .. e cost of nw.into.i nLt: _ bureA.u i;_ e-.. ch i:1C::.ustry to coio.uct an ex-pert ret,i t r2.tion search :ii.1, s y s ter.: , i L1 :!lc:::y Lls t1.nces pro.n.i.bi 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 cost :::Ji t lleir 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 rs. The slightes t lea.1: Tesul t i:.1 tlw co,-.y being on the marl;:c t before the original cEn oe protectec!... Or:ly a tral registrntion bureau, conducted neutra l auspices, assured co.nfj cl.enti
PAGE 393
-362-entries o f registration, it sha.ll botif y said registrc:mt tl.J.t cJ.ue r8e;istr:tioi1 1:e.s been :.. ranted. If 3 .fter suc h search, said J3ureau fi:'!ds th:'l.t t 1e style -,)C_'lttern or ::'.esic;n . D .ttern i s not t a be r c.z i s terec1 .. , it shall ace .10t i fy CoC.e Autnori t y ancl the rec istrant . I f t h e rec;istnmt i s i10t s !.tisfiec:_ ' .'lit .l L l P :fLl(::.i n. o f sq. i d Bureau, the Code AutDori ty, U'Y)Oi1 request t:1e rc t r2.n t , s:i1all refer t:1e matter to a n Arbitration :Board for deterr:1i1mtion. T:1i s :Board <>hc.ll consist of t.1ree T'lenbers; t o be 2.esi : nated by the Code Authority ; one to be (cesi.c'nated b y the H', i strant ; the t hird sh?.ll be t h e Administration ! i embe r o f the Cocle A uL10rity t o serve as Umpire. If the Arbitration BoarC.. deterrnL 1 e s t G .. 'lt s t : le p::1ttern or Ciesig:n --)at tern i s entitled t o oe regist erer."_, sai d Bu1ea u sh::>.ll imnedia tel y comple-te strati on." Section 5. 98 11 to b e t:1e co•.11ri.ttee are follo w ing: J st.ly, it vrou l d r .. eci d . e -,_ r elimL1ary q1.lestions v•hich lie ' Yri t:1i n the scope of L 1 e try s uch as: .' . ?. t constitutes registrable c'.esigns? : .. ...,r how long [', S11ou lcl. protection be afforded t-': ret; istration? ..;) suc:1 reListrati o;.,_ be rel"levw.ble a n d if so for how long a d) Shou 1 d. O\ll ers of (.e s i c;ns be --.ri vi to lease t hem to othe":' t 18L1 ers of the imluSLt r y ? 2 . SeconC::.l y , L e COlmTti t tee 1:rou lC.. c,_ e c id. e t f orm of reGistration Y ias est sui ted t o t!1 e v!hethcr t_ set up an L1c1.ivid.Uc1.l Bureau J r t'J use I:c1o.ustri a l DesiL,n :.eistrati8:i1 Bure'lu. ' . 3 . If t:L1 e d e ci s io:1 i s r:1acle t ) use the exi s t i1 1 ,:::; J:;ureau, the third f1.mction o f the coruni ttee wou l c1 be t'J a.r r::J. i 1 f ; e vfi t h the staff of the :Burcc>.u technical det ails of reti strn.t ion such as fees, tine "..ll 0wed sec>,rch iLc files , c:. other matters af fecti!lg the 'Jf re.:_ist:ntion i n industry.
PAGE 394
-363-CO!TTE:TTS CODE ?TI0:0LE ' : 0:? u:CS I ? IRACY A . .:ERICAU A.,.-q:siTRAT IOi:! PLAN :-.AYLEl:T PLAN EL'a E 11 P iJL ; RESEAR C H & PIJG l T EJG D EPA1'J: • .rt. A . P3.0CEDT.L"CS r7 ?A..:.-:!:iLIJG C A S E S F?..O VISIC-! A L :n.:rLLS 0::' .L=:E IHJREAU COl :1 ::C2 c:2S :CY D IREC T O:t{
PAGE 395
-364There is :•rere;1ted 1 t1 1 10 c Lc.eT.._l.ti )11 b y the C') 1mi ttee various Lethods o_-\'f:lic __ c.nti:ol of r..ir.nt be estc.'blished for the L1 clustry. I:1 -nC::.er tJ.e L.0ustr7 !ni;ht outai n a r:1ethod best fitted for t .1e Ladies' L-.:J.ustry, v;e Le art:ne:1t s of the Ac'J.mi nis to ?rite tn..: .. t v.'OL.lid. 'e c: .. to the Adminis t!i..,1l:i.on, e.n: a.t t :1e serne time i Z'ive t h e i:d>11stry the op: ):>rtuni ty to es-ta .... L'_c1. C J!ltrJ l t}:is i f_,_j"• c t i '):: . rn e1e .:::.re --)resen ted vri th t J.1ree PI ')Vis iol1 'h. l b:• .n.rbi tro.tion S ociety of America does nJt set up i11 G.et? .il rules c.:.1C:L ::c ec;ulnti:ms , but 1atner a nethod of procedure. It is :.10 t cert _ in. t l .t t l1i s jJr'Jvi s ion vwuld be accepted o.-t11e o f the Au;1ii1istrs.tion s L:.ce it cLoes :1o t e xclude in frLl:ement on :)c.tterns .. :..c'. PI") Vi s i o:r.. :r0 . w"'..s r er./.e r eC. : Ir • .::::;war d of L1e Planinc; a11d Rerearch g.rtm e:;.t yf t h e Ac.:-:lini s trat ion. T his '1rovi sion is more ex plicit a:.:c:.. 1:;ives Greater det.:J.ils for t l1e :net:DG. of establishing and ma i nt.C:Ji:'ill;S of f!Uch a bureau This } )r'')Visi o n would be ar::ce)t;.'bJ e t o the AJ.ministrati-Jn . P::cov1 : ,. V•::' .. s wr i t te:1 by Elwell of the Le c a l t o f tile .d' ,_,_: .:---r, J : 1 a11d we believe one most sui teci t') our il dustry • • • Y., :.=.1-. _.:._ __ ,;:--1ully i s L 1 terested i n t h e subJect of Style Piracy ar..d J.1c h . of wha t requires tJ l')e protcctJr .. ''-:y: Pir2 .cyo Lro Eluell 1mC:.ert')')l:: to Tite this Di8. ,_. r;u.r .1>-.rticu!..e::--...r :cJ.eeC::.s a ncl we ? :re or t i1e opinion it J.. . , < s o::..-3 the requirements of our inc'.us try . This )TJ-,' • .. _ --'_: --:le acce•"1 c:J Let;al Departr.1e11t o"!': t l 1e A cJn.i n i s t -,-.): : ,e lc_,-tJ 2s • .J.rt •i :ce->>Jrt LJ.f o r r:l'tiJ::l furnished. by S')"l..l.TCt"S vrh) s..re 112' e1.eci_ i : t-1f. of ret:;i str:1..ti 11 of desi.:;ns f J r v.:--:cicus L_(ustries. outlL1e t h e met ! 1 ods and. r.1achinery f'Jr esk:olism.ien'u J:. I')r a:1C::. vihicl1 are TIIJW beL1L: 0perat ea. oy v<::.rious iDcl.ust ries . A lso Ft special re)ort from t :e Jcsi[;n Iureau COi1t aini:1.C a11 estimate -Jf the costs and t:1e .1an:..er o f e.p ) l yine; tl e"'e c osts t o t : e embers 'Jf t:1e i1:c:tustry who wi:1 to avail t h e nselves of t!1e of t"::le Bureau. It mus t be ur.dcrsto-JG. that the o:1l y method o f e:,1forcement is t h e Code of t ,1e L _c'nst n:.:d th:-'lt i:il orc'er t'J establish Styl e Piracy f o r the L c'Lustry , tl:":.t i t will oe necec:sary t J ')b te..in fron t n e Adminis t :cati'Jn prJ}Ier a,Je11d:e.1t s t J t'i: e Cocle as p::c'Jvid.eG. f o r 1y the Code. 9811 A . 1 :it te:1 thal CJC:.e :Jirecto
PAGE 396
VI II, Sectio n ( j ) T o undertal: e , in c o njunc t i'J 1 w ith the C'Jde uthori ties of related i ndustries , o.n i n v e stigatio!l o f styl e piracy and t'J r e c o mmend t o the Afuninistrato r , vvit"1in a reas onabl e ::'leriol. 'Jf t ime, a:•p r 'Jpriate means fJr t h e regulatio n a nd. c ::mtrol of s t y l e piracy, whici.1 recommendations, upo n the o f . t h e Administra t o r and after such n otice and hear ings as he may -.)rescribe , shall become effect ive provisions o f this C o d e . TH:S P R O BLEU OF :JESIGN PIRACY I n dust r y has long s t rucgl e d vii t-p. the p r oblem of design p iracy, and t h e p r o t ecti'Jn of Cl.esig:11s i s n ov1 a . clmow l ecle;ed t o be a v i t a l f a c t o r in life. The pira t e i s r e cogn ized i n m ay i n dustriec as a menac e t o :pr oL_,ress a11C.. t o p rJfi ts. Th o u,.a .nC.s o f r.u :mufacturers 1ho emplo y a desiGni nc, s t aff o r buy oril , i n a l ci.esi t; n s have t o suffer :1eav y l osses uy the t h e f t of t hose rlesie;n s a : 1d thei r repr oductio n i n inferi o r material a t a cost. T h e w i d.esp read f s teal ing desi g n s does n Jthi n g t o s t i mu l a t e creati ons; o n the c o n trar y it c heapens a D d debases thG :., a n d its cost t o i n cus try i s e s timated a t m i llions of r oved C odes f a r ubm ission t o i nc.ustries i ntending to use c l a u s e s , but t h e f o l l o •inG as simple a r d effective: 3 811 H o mem ber o f the indus t r y s h9 .ll ir.1i tate, siT!1ulate o r any oric i n e . l o r unique or s t y l e o r any o r n ame o r b rand rec;i to red w i ti1 t h e o r its d.e s ic;natcd ancl :my "'UCh i mitation, simu latio n o r J n shall consti tutc an unfair trade p r actice an
PAGE 397
-366Central Indust r ial 1-;ureau The Council believes ti"k'"'t next step is for tne havinc uch :-,re>tectio! 1 t o use a central I_du.stri a.l Des ig:.-1 Bureau. For a -ll industrial l1A,vinc the ce>nrnn problem e>f C:.esign protection such a bureau i s entirel J practic:1l , e .x-0eclien t and. less costly. then the esta.blishment of a bureau L1 e a c h industry for the following .;.. reas:)ns: 1 . The problem of Drot ection i s n:)t only the affa i r of co:mpetito r s vri t ' L1 an industry. T .:.e ori.:_,inate>r of t:i1e c:esi::--n , ti.1.e seller and the public e..ll have <'11 i nterest. Only a c entral re{;i strati')n Bureau can pre>tect all oi these inte r ests. 2 . I f eac h il1d.ustry sets its )Y;n bureau, it .nust '''o rl: out t.1 e standards, the 1.nd. t h e methe>ds. f:i0st i:1 c,ustries have nJt the e :xperts t ) d) thi s . G:)l1sequentl;y vroulC:. be a variety o f we thoC:.s anci wide d"iff e r e nces L1. p l D .lm inL; a21c. effec ti ver:.ess . T:tmse ca."l be a ve>ided i:1 a centra l registrati::u bureau. 3 a The cost e>f i!laintaininc; 2 . burea;u. L l each to c onduct an exrert rcE; i stration "earch ancl syster.1 , is L1 many insta::.ces p rohil1i tjve(\ With a ce: :cee;istration bureau, tl1e industry assuu1es little: o:c no fL1ancia l responsi.bi li ty, the r , e1:1bers whe> register articles bearii1C only t he c.ost of t heir 0wn so.rch. 'Jlh e necrec;y :1ecessar:/ to :rotect a registrB ,ble clesien is obtcj .l 1able in an vrhere a bu,reau i s O}'ero .ted bcom petito"'s w ':-he: slif)ltes-t leal:: may result in t:i1e cop? beine; on the marl:et "before the Jric i.::r::..l' c a n be Only a cent:cal r""t;istratio n bureau, conductPd neutr a l assures ce>nfidential Pre>tection o7 Desi cns in the Textile F ield The s;_ ,ccc[:3 of the I lC::.ustria l :Jesic. P.ec;ist2:'ati0 n Bureau of the !"c:6.ors.t ion of has .r oven the c Jntr.ol of de" s ic;n is a realiza-ole icleal. A practical s yste1:1, such as tl.1at n o 1 i : 1 usc t the can be utilized by a n industry desirous of its C.csi gns. Five a c o , t h e stealinG of d..esigns in the sil L indust;.y was c amnon practice. N0w a case of piracy i s a sensational story, for the Bureal.l. nas been e.l mos t a percent successful in its ro.,ec:.ion of ori::L1a l d.es i gns. The necessi f-:H is a"):,arent i n every industry havinc; a C:.c<'it.,n !iracy Th e existin.:; L1c.ustri a l Desigil RegiG tration Bureau i s now qvaila.ble t o 0 ther L1c.:.ustrial Gl' oups. I t operates t : is wa r : First Step T owa rds peratie>n of a recistration service for c lesie;s i n any industry i s possible only with t:i1e aGreement o f e ,ll members of a n industry to submit c:;.esigns to a centra l clearin[ h ouse. Shoulc' the number of 98 1 1
PAGE 398
-367-d.esicns in use be avc_n11elrn2.n':;ly l a.rc;e , 1:1c1.ustry ma. y J,..,l-r r'e 1• ' ..... l n t,i:s 1:-to be submitted. a com.'Tli ttee re"'re enting the use arter n certain dntc arc Pr8cedure r3. t the ]U!'eau Divisio n ) (a) S ec.recy When the o>:rnel' brine; the colore(} of the desic;n t.J 3ureau, i is ven t') t.r1e entry clerk 'J •• o removes the nane and substitutes a s:nn'.Jol . T ile is t he:r. se"lt t o the search int; r:>om ...:ol' c:Jm-9uriso n . J:lhe clerk i the anl y ---.ersan in the Eureau Yl} o l.:n:>ws t:) whau it s . r1 e_re i _ n') Jf a leak'lge, -no no . mes inaclvertently no buyers seen 'J? cha1 ce in the Jffices. (b) t l e searchir:t roam, tJ.1e clesie;n is first it i s classified.. undel' various etc., c rosa -referenced to insul'e acc'JJ'acy in search. The J?ho togra9!1 n<:;xt g'Je a to "G:he expert searchers .-.rho it with previously fileC: of its type and c lassification. I f no conflict i s disco vered, the si(etch is st8.mped as ori g i r..al , sent bac k t o L:e e!ltry clerk a .;1d. returned t'J its J'rme r . The fhol e takes fortye ig:1t !lJUl'.. . A day a"1cl. a ni.3'1t staff Jf searcile_rs i s employed, for thel'e ,. re c-one f 1rt:rf9ur Ge igns on fil e . (c) T ime Llmi t Reulati::;ns ;nle n )Wt:er receives his sL:etch arai n , he must be •repared t'J print it n;1d r etu:cn Ii!1isi 1ed 11 atch11 of the r :1ateria l t:J :d1.:reau i de.;ys . Thir i s t 0 fr'Jri u;l) the lil:cl y d<:;si( n s fJr years and to ins.rre th-:::.t everv t::e'r ret ister i q inten(.ed for ir.m1ed.iate (_ • ' t,. "---' use. Recistrati o n i s Jne :ay be extcr..ded t o two . (d) Procedure Jn ::-te jectio n :_ If the aJ)ears t o conflict with a erl t ::.-y, it. is t ,rree t L 1 e"' bef'L e f inal reject ian. Distrib-o.ti Jn :>f color ::.s t ..... int1 e . c count. sli:_;ht CtUtn;;en in line o r COnt our are n:.:>t COl1Sidered but every C'"'.re ic:: ta':en to a f air decisi0n Oil t 1e of su-bstitutio n fro_!! vi_E2_'>{2_'Ji_nt _of the ave_ra_re buyer o r co .sumer. Al1 ow;1er may occasio:1ally qucsti0n the Bureou'f lejection. In sueD. cases, the c:>nflicti.1;; e;ntries are "'11':''.'!1 t') a co:rr.ittec 0f seven rGpresentinG 'Jf Bef')re cent t o t11e commi ttee, e v e n the .-.ynbols . ..,_r e frol'1 tne an absJ lute safe(}.:D..Td.. F o r a i 'Jll five :nem-ber:: ::tre required to vote ancl the c.ecisie D i s fL:.o.l -,,he: ive:l bji "' m...,j ority . (e) P r ovisiona l Rules A .... e t oJ. provisiJ 1el :;:'ules of the ] tio.1al C ouncil o:n Design. P r'J t e e ti OY! has 'teer. dro.vrn up, :: nd t rules c )TI sti tut e part of t:n i s :plan • . Procedure f o r Other I!Y-us_t_!ieE_. Vfuile the s:rstem set fortn above ee:: !"U.ccesc-ful in the textile leat"her fielG.s, the rule" cc::1 be al tercci t;:, ":lcct tile neecs 9811
PAGE 399
-368 -of <:'-ny industry. A C •Jm..rnittee J i 1 :Uesic_,n Protecti'J!l co:r..sistinc of r .1embers ::>f tl.1e inc'ustry vnrk out a technique sui ted to that particula industry. Such a muld hav e three functio!ls: 1 . Firstly, it decid.e questi::ms which lie entirel y withi n the scope of t"l1e ilvl u s t:cJ such e.s : a) T.nr. t t u tes o r ci.esi : ):1s . shoulcl be sepa:c:: .ted lP7 u. conu:t.i ttee fr:J,:: the recis trable desicns. ) b) For hor1 l one; a ::;eriod should • ;rJtection te afforded by c) Should such res istratio::1 be re: n.ewable ai"..C if so for hovr l one; e. period. d) Sh::>uld owners oi' be t o lease them to mer1bers ::>f tl.1e h'..dustry. 2 . Secondly, the c::>m1nittee C:.ecide v111o.t f;rn Jf vvas best sui ted to the in(ustry e . n c , _ v1:1et:!J.er to set c:m inc.ivic.ual or to use the existi nr__; L1.::ustrial Iie s i12:i1 J.e c i str:1tion Bureau. 3 . I f the decision is r.1acle t J use the existi n ?ureau, the thi:..d functi'Jn o f t h e conrni ttee w o u l d be to , e wit h the staff of the Lureau technical of re,_;istro.ti::>n such a s fees, time e.llowed for searcJ.1inc; files, mC. other mat te::. s t inc t ! 1e of recistratio:;1 in the i nC.us'try. H'Jw D esins are Pro t ected . I t will be een th:.t the system does m'Jre than merely assure e. priority ri.=,!l.t in case o f li It e .ctually ,Jrevents copies fro m reachinc the :Cach accc1""'ted ent :cy it'-s tru. 1peo . before it leaves t : 1e :Dureau , and tha.t stamp is a n surance trliJ. t subsequent ent ies vrill be rejected. The lJrinters, d.yers and e nc;ravers l'!ill n o t 0:1 a clesig::1 u::1less it bears tl:le a,f the :Sureau. T l i y:as in f ull : Jrce trn y ears bef Jre C::>des c ame i ntJ effeci. I t certainly b e p::>ssible ev'Jlve similar c-oystem ia • t]1er prJtecti::m :)r t'J arrance t::> have t hem u s e the r>reEe:: t system, es:lecially l1'JV! that 'Jf :?o..ir Con peti ti'Jn Jffer t J t :1e t:, it }l"'.S l::>nc; o.::t a i ted t o establish firmly t:1e ic pr J ced..ure Jf fair ice. Si tuatiJi. C l 1 . " . n:::;ed. O'i Cxles All 'ltterrr:cts t J :)u t ain FederP.l :pr::>hi bitinr; d.es i c:1 !:ave s'J fD.r beei1 uns uccessful, aild exist'inr; la,;;s d::> not ap,;ear t::> :Jr::>vic: e q_t:ecl_"UD.te p:. ::>tecti::m f::>r C cesigns. C::>C:es .)f 1) p r Jtecti :1:.:1 c1. F air C::>mpeti ti .:1 C;Jmpletel y c :12.i1Ge tl1e s i tuatio:1. the •"Jrotecti o n selective ; l-hat i s , hin[, Jbt1..in it; and inC. ,..l.stries , :rhich c1 ::> ;.Dt nant it are Dt 9811
PAGE 400
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::. 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) ArbitratiJn can be used to insure just and speedy settle ment of any controversies i n v olvil1g yrotected designs. Fur ther Informa.t ion The Natione.l CJuncil :m Desit;n Protecti::>n of the American Ar-bitration 521 Fifth Avenue, l'!ew Y::>rk City, will be rlad t o furnish further inf:::>rmati:::>n or to novide an escort for t'hose desiring t o see the Ind .ustrial Des ign Bureau in operatio!l. 'jo memoer o f the I ncl.ustry shP.ll i mitate, s imulate or ap;)ropriate within six m:-mths frx: tl1e rlate :::>:'its ree;istrati:::>n any t:1ereof, any ori:-5ina.l ::>r u.niqt;O o r style or any trade-mark or !lame o r brand rec;istered 1:vith the L1dustry o r its desir:;nated n.gency, anC. any such imitation, s inul ati::>n o r shall constitute an unfair trade ;:-J:rc.ctice ancl. s. vi')l ati:-m o f t h i s Code. Style Piracy or Piracy,of Desig n The Code ty ma;y establish ar d.esiQ1ate a Bureau of Design !{ec;is tratian a;.:d ,:;rr;anize a C::mur.i ttee for the interpretation of de"'ign in the current acceptation in the trad.e/industry, anCt. no member of the trade/i:i.1dustry shal l usurp or mak e use of any desig.!l, drg.wing, plan, styl e feat-trre, ::>r cha.rCJ.cteri tic which has been re.::.;istered w i such :Sureau; o r any such design Vifhichas been sub m:btted to a p rospective custc:ner b y a c ompetitrJr and. i s datecl and. rightfull y and plainly r;1arl::ed as havinc; been .created Jr devised by and beinG the of sl::.ch c ar••ret i t o r and which has nJt been purchased by such prJspecti v e C\.i.stomer; o r re:0r:::>duce f:::>r s2.le o r sell any article of Ruch desic n w ithi n a five year Deriod efter its 9811 I HJward Hayden
PAGE 401
c p \7 ,, hlr . Max Berkowitz 303 :2ifth Avenue lie'.: Y .;rk City Dear ilir . t z: -370-iviuy ,'3 2 , 1 9 3 4 • I nJte h: e. pu-iJlic Release , \'1l1ich i s enclJse d , that tlle i s 'Jf r e'Jrc:a:,lizinc; its Cod.e Auth') l' i ty. As I -l romi sert ;::rru. e:l yJu 'Her e I n.r:1 TI'JVl Jut linL1{' ...1 f : n :re.:;istratio:1 'Jf r.esig:n and tl1e steps t J oe .e11 i n p r r ve::.1tL1c ;.1y r:1e::1ber a f t1:.P i nc:ustry d.,si[)1 that -:Jee:;.1 re-ulP.rly Of c ourse t . l i s :rJCeC.i..ITe i s suuject t o SlJ.Cfl m'JCi ficati'J!1S ma.y be or desirable i n yJur inCu :try . C onC i t ions ure' d i s s i milar L1 tvn In(ustries a ncl v1hat ma.y v1orl: well i n one mn.y nJt be successfu l in t .l1c Jthe-,.. Ti.1is nrJcedure, h:mever, has met vii ? ::. eJ.1er a l 'J: t:1e stra. ti on and. it i s sus cestive, a t l e2.s t , L.' .::-t e11tirel;'o / a:-licabl e t J be 1..1.serl exactly as it has C: r <:.ftec1 , \T1en y'J u v ;a-'C lleY: , I 2:-'"'.v e :/:JU 2. s1::.::;:_;ested C 'Jde prJvision tJ c:msicler. O f c.;-y.-_ rsc, Li.i s :."ro ced1..:.re i s the b;y l a rs o r :.:ules t CO..Ti.''' )Ut tue C')C:e T h i s ;)r o cedure ' . shJulc;_ not be n.ittei: i:.t1 E:.'-. C Jc' e , but cJ. c'lo-:)te( :--s ::1 resolutio:.1 by t.re C ' x .. e A u t!nri ty a t t:'e k.m i 11istr.::.t o r f'J r o v al. nJ t ViJitl le Jl1 matter Lw. t y"Ju '1 .,' feel I ce of =::.cl::,. ure. 9811 Sicerel y 7B.A e Pr:J.c t ice C onsultant, Co:.J • 1 I' i v i s ion
PAGE 402
ARTICLE IX RESISTJ.::ATIOl! OF :-cJESIGl S 1. Desi c n pira c y is l e:rci) y c'.eclai:ed t:1 t)e Em u: fe.ir net:wd of c :x.1petition. The term as used sic,nifies designs or ornrunenta l n a l or member o f the she 11 imitate or c o p y , ')r caus e t J be imitated or C O)iecl, an;y oric,i::.1CL1 L1 its a}'l:">licati:1i 1 t_, cmy P oduct o f the in0.us t _ry, with out the c Jnse:nt Jf the J w 1 1 e r t ' _ere of, if: . ( a ) A d.r awing , pho tJc,raph or r:ucle l o f ,aic'. desig n D.as been registered. vith a CisL1terested a:1 ( imp artia l c.c:ency t o be b y the Code Authority VIi t h t h e a p ,,rov a l _of the s tra t or. I::.1 ree;i s terinc; such t : e Tecistrant slmll indicate clearly the par o r particul ars i n suc_1 is ori:._,ina l i n its a}:Jl)licatio::J. to a;.1y :;Jr oduct of inc:u stry , s 11all, in acicli ti0n, submit a s r o r 1 1 s ta:temen t in v1hic n he certifies that t o t:1e best of his b 1 o w l eclce ancl.. b 8lief, such C .. esig n is in fact ori c i n a l as af:;resaid, a;.1d shall t h o date of CJ! 1ceptio n of suc11 c1esic n . Such G..isL1 t erested and im: _Jart i a l shall a.cce p t any : .esiGn submitted f o r a s n f . J r c s aicl, and shall issue 2 cr.-rtificate o f registra. t i o n t o the re[istrarrt. (b) S a iC. o.es ic;n has b e c : . Jff: ; r ec. f ) r s a l e , o r said c.esi() . 1 h a s bee: 1 t J "Jr C ' l'"!b,.,died i:'l .1rticle s p r o Cl'l'-Ced w-: .. this CJ0.e o r any J t' D.er code a ffcctint; similar Jr :;cl.u c tc for s ale :>r tributi10n • . I. (c) S a i d o r sai [ t J which design i s oT' L1 "d.eh s : . i d c e s ig-:1 i s c . . boclied bear s the mark "l-tec_;istcred cles ir;n " o r 117"ec;. iRA C ode Humber11, a nc' J f Providecl , t h a t t h e p:r oni bit i J: i 1 e1e i n .'1-l_. a . L > s t Jf aw G..esic,n expire s i::: mJn t h s fr :1 cl.ate of Secti o n 2 . Art Ar.oitrati0 n :Ooard r,lmll be . e t t o settle clifferei.1Ces Jccasioi.led b y cJ:t1flict s i n cles i g::1 o r })i orit; o f rit;'hts unc:er c:.e s i o 1s . After all -,os sibl c effo1t has b e e J'l e xerted t o amicabl y settle . uch diff r ences, the Arbi trati ;11 ::.)"Jard shall sub mit t:) L1 nr:iitinG,; c:. s t :t t ement settL1' :iorth tne facts t 1ereto, w ith l ' c c s mne n d a t i o n s :ts t o t : 1e c i esired acti0n t o settle suc h d ifferences. S ecti'Jl1 3 . lTothi nc; c J 11t:'d : 1 e d . i n t hi" Article IX sh..'l.ll be co.1 s trued t :> limit the p r ; teet i J l affo rcl o d to cl_esi [11P ., s Jl' uc:mufac turers in respect t o designs under existi v lav1 . 9811
PAGE 403
-372PROCEDTJ:ttE E-C1-'c.SES 0:' USUHPA':i:ION OF ::JESIGH IIDesi.c'!1 Piracv -.A:.1v m N nbe:i.' :::>f t : w creates :::>r (evises w ' tl v a style -)0,tter11 :>r f l f.esil)l fil e f:::>r afficial vri tl1 t l1o Pat tern J.ec ; i s tra by the C .Jti e ty of t l1e I:1C.ustry, a samp l e :::>f the o r vattern attac! L1c t.:1eret:l a rec;istr8.tioi.1 carcJ., sball be fu1"1i sl1 ec. Aut JritJ. such ami f o r a per iJG. :::>fat leo.s t siz ( 6 ) m:::>i.1ths, n:::> member :d t n e L1dustry shall in anJ in'.l"-i.ler Jr form, L 1 t-1e curren t i.1terpretatio11 of tl1e I:1e.ustry , copy, i w i tate, use or d e.:-.1 i:• s2.ici styl e pi. ttter:1 J r clesig n pattern vri tl1out license o r CY1se:1t :::>f re:::;istrant, excepting t h e ap::'lroval of the Arbitration BJar d as hereiiafter set f:::>rth. S a i d registration c ard shall include foll:::>vri n[; : the name ancl addr ess of the rec;is trant; tl1e ela t e of fili:ll:; o f styl e p nttern o r cles ien pattern; a. brief descri ptio n o f tl1 e mere<: i:>lcluclinc e s pecia l reference t o its distL1C:,"Uishi nt; cl1:1.ract1 .istics, and E ! . descriptiJa of tl1e machine _or machines upon which the nercmnd ise i s :1Rnufactured. upo:1 such of tl1e s t yle pattern or pc.tten-:, s cdc shn.ll rr.al::e Jl' t J be ma0.e a full c:tilcL complete I f after suc h search, S<-\i-d ::.:'ureau fi:1ds that tl1e styl e 11attern :::>r r'cric;:1 is cntitlec\. to -be ret;ist e red, it shall r:1ake pTiate e::::.tries of re::is tration, it si1all inmedia t e l y notify said rec i s trant t L 1 r t c.1.ue h.1.s 'uee:n [.ranted. I f aft e r such search, sai d -ureau fi: ds t h D.t the s t y l e po.ttern or c.'.esi[?.1 i s not en titlec"'.. t J be ro:i s t eroc1 , i t s h all Code Aut h ority and the s tra_1 t . I f the rec i s tra!lt i s ; 1 o t tl'le fL1rc L1 c o f said :Bureau, tJ.1e C'Jde AuthJri b;y;. the re{;i s trant, shall refer the matte1 t J C'I. I Arbitrati c:u B 8 a r0. fLi.,;,l determL1ati on. This ::a:>ard sha l l c'Jnsist o f -chree 1 : 1embers ; o::e t D be cl.esic;;1n.tecl the C:::>de AuthJr ity; Jne t J oe desi:_;-112-ted b ; y the and. the sJ.1.:"1.ll be L1e r.c.m-ber 'Jf the C .Jde AuthJritJ1ti tled t J be :cec.,istered, said :Bureau. sro.ll iPU.1 3dia.tely c::mr:Jlete re.,i t r"' ti J : : . II :' •': :: : ; : * * * * * *
PAGE 404
1.1934 S T A B A :: S Jl Ti-:E _TATIOj" ... L COT;-_-CIL ] For :Jesic.:n :eGistl:'.. .... i J:. .A. -Jf ) Y' sJ:.ll Je elected bv c;.cl c.uties Jf t'.:liS CJJ:lnittee s'u.:.ll e a . Pres.cri-bL::.:_ :.:ules 1.:1c' l'e, 1.1 ti J: s fJr the C=':l:.uct se1-rice u .. de-t.1e t:,llicl.a:.lce -::nd vii L1 ,l-'vice ;f t ile st-:.ff Jf t:1e J.ec_ is t rc;.t i:::.1 : ureau. u . ActiT1C as r--._;._ "P eal C::>. u.:i t tee L1 c.''."e Jf rec::.rc" .. L1&., of t: e ]U!'e'lu t..) cJnflict oe t ue e:1 c:<.:! s ic;:1s . ' 2 . ?.:ules C:l.:.lC1 ?e{;ulatiJns: c')!'1JI1i ttcc si.1:'1.11' )!'1 Jf t .le :)::[ eac:l i;-,_c'_-L...stry, 0eten.1ine f)_' tl'le ruidance of L1e :::;v.rer-u, t ... 1c :,l:i.cies: 3 . 1811 a . 'J:hu lenc;th Jf til"1e j i ve-.1 t:1e buren.u for up".:i. the 1 . b . T:1e -,)eriod )i (i.e., ;:..e :.:-ear ; five ears, etc. ) c . .. t shall be c :1siclere' t:.ple Jr sta:1clard G.esi:"13 i s , t:nse n::>t m.J:Dp 1-ized one firm . d . DeternL1r.ti -_1 • tne :.. ;rr,1 :1ic!. cletibns '7ill be clibEl ittecl t) t ile ?urer'.u. -, t bl' , t f . .,. 1 .us a lS.!1.J"r1e.1 J _ a .. n __ T'J i:1c..u u ate cesi[,n r.:.. A Teq_uest s'h2.1J. oo by the c P1mittee t o every;:1e L1 tl.1e L1•:1try, req_ue ti:i1."'' the :filinc ni t:1 t}le :Dure.au b_r a certain d.ate, 'Jf aJ.l uei nc; .1),,-c,.ch i i•QiViUUC. l I '!1Cr . b . A cl .. f)r .. t1e (eril>ns :.cc-r0.L1C t-:. t;,_Jes sh,_ll c v•ith tl1c mutwl )f t11 C'J;'U",tittee .": the :2urem.1 ' s staff. c . The C'Jf.'li11ittee ':rill Cetcrr.ti :c td) un :: w:1ich :auren.u nill rc. is tcrr-.blc, desi,:)lt::. received in the i:1itirl t:.-t is, .,. ctj er but thJsc ')revi Tu.sl y cl
PAGE 405
-374-o f rrgist rr:>.blr c]_,..sit::': . s s!l"'l l b o:. thr s of ]Jriori ty of r c . i p t or such 0 tb r r '',S thCommitt,..,.. rn:',y J.cidto b f.:1ir ':l,_d -q_uitabl-, or, to ".ccrpt for r gistrat:io:: o . ly 6..-sie; s .ot cl1J;!flic:•.t-c!. L _ th,.. i:.iti:.1l collr ctio:.. All to b,.. co: a s st.:1plr or .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:_, will b or sto.. .. dar d , which wou l d b r r: titl,.,d to r "'gistr:J.tio:. if submi ttd Yvi thout duplico.tio: . • ) 4 . S t tl-m-: _ t of :Ji s .Jutr s .::l • r 'J.rcU : .g R r gist ratio:. or Us"' of D rsig:. s : r tT"l.rcli:.c r , j -ctio:. s mo.dr by thBu:ccuu s:':":.:tll b r r f -rr-cl to covr .. i..g corur.ittr"' fort:i .dustry Upo : . t :l"' r qur st of t:y O'.'T. .r of c:r s ir.,: • A f r,.. s h.,_ll fix--d py thr Commit t for t ari .g of such D-F,-als, i:. ordr r to covr t:Y [l,dditio: ... l cost of h."l. .. dli.c; 'cl1 dt;.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 ic,:. b i :.o c1isput: d , or r r . . rro. g-r.lr .ts .:'. r-to b m acl.r for cross-lie-: si . g of fl, C ' rtai. (-si t;:. o:. o r mor'" p:1rtirs , m att'"r sh'l,ll br adjust"'d b,/ t.rbitr1.ti o . , i :. r:.ccord_r-1,:-. c w ith th-rul"s of tlr Am"'ricrc: Arbi tratio:. Associ 1. tio: . • 9611
PAGE 406
. . . , . 3 7 5....; . PR YfSI JULES -:hl the HArniO AL GIL P'.::OTEC.l.IO J f ;H' tl e . . DESIGrT -;1IOl. 3 I.REAU The , 0'\.l:.:cil csi01 c>.do:pt s tne f:)ll:)wih:.., P.ules Jf' PrJced J.re fJr t 1e recistra ti'i::. o f :or'ic i};.[).l desit;:ls' trade j'l[).Jnes C': d tr'l.deiri tne Desi t"n :Surea-1.1 • I l . f e r S etvice: cAnJ' trn.de assJciatiJn . :)r i::c1ustrial .:;r oup operati:t?-::; under a C ode o f F.ir C omneti tic:: ,-,;;,ich co_ tains a cor..sti .. tuti:15 the imi tatior.. or Jf jric;i!1a l desiE,"!'!.s, trade _1ames or trad.er.1arks al'l u.:1fair trade p r-.i.;ti:Cc , o r cny such a s::>ci a.tion ::>r such sta: C:.arC.s rJaJ ply to t l e or te> t1 1 e Bureu u f o r the use o f its f acilities f o r its members. Exte:1" i :n of the use o f f acilities t J such r.1eml ers shct.l l oe throl.l.{;h tne redium of such <:l-Ss0ciat ' ion ):,. c;1oup, The C Ju.ncil s .... 'tll a:ol rove oi' such befe>re the e>f the Burea u i s made e.vc.iL.,. b l e ; .:->.::d. such trade association o r e;r'Jup subscribes t:) t l ese .Rules for its r.embe r s . . . . I I. Ins ti tuti• Jr. o f se'rvi c e : E:tch trad' e aSS')Ciati :>_: ; r i!lc:us tria l group 2-pplyinc; for service sh:ll obtn i:1 f r Jr.l its r:1er:1bC:rs n: c:mrplete :)f e.ll d.esi.cns, tr9-de :._ runes o l' r.1ar:;:s J • : m ecl by such mcm ers, oefore a specifi-ed qat'e, sl-{a,ll s :nt t":'1ese CC! rd.i:1.[; tJ. t:ype D.i d date and shall file them with the D sic;n Iii. . D e fil1itions: Each ass'Jcin.ti">!1 Jr [,roup, the terms -Jf its shall define L1c n ea:1L-[ ')f Jrit:;i al d.es.ic;n , o r wilat shall cc;.:.sti tute c-. and shall fix t h( :peri Jcl o f t ime f o r v1hich re:::;istratio : 1 shall ru:. f J T t ile lJr Jtectio.• o f a desibJ1 and the terms :::>f its renewa l . IV. uequiremen t s f o r -.Ret;i s tra t ion: .Any member o f :-1:1 i::1dus trial group entitled t:> apply f J r re[;istrati 'Jn o f desig:1., trademark o r trade :1ame, shall aCC:)ffilJany such ar':?lic:J.ti Jr.. fi th a sar1rple, Jric;i n:JJ ketch, copy or model f o r pu..rp Jses Jf i der-.tificc.. t i :u ancl such npplicr tir: shal-l c o:l tain the of the if a firm additio n therc t'J, t'i1e si::_,;.1n.ture :d the' firm ' s Jfficer Jr autho rized er:-q:)l Jyec a::d t. e legal seai if t11e .:.:•Jplic.!lt •is a c orpJ rati 'Jn , to:et' s r :Ji t1 such Jther L:fJrrnatiol1 a s the Bure. a urnr...:,y r equire . Each applicatiJj1 snall be acc:)mpa:".ied by the fee l>y •the Bureau a: d tne C'SSOCi("'ti:m Jr rroup f-;_ such services . V • Fees a;.-d The fee t be by each t f Jr e n.ch articl e submitted f o r r ec;istrd.tio!l s.hn.ll be fixed ''.CC1rdi: u t J schedule by the Burea u a:1d ass Jcia ti :n 'Jr [; r oup, n.;:u r .. y be '".CtjU"' ted r their joint apure>v a l J r in t he o f the :Bureau. If t!1e C::.esign is not rec;i tered, po.rt the fee s!kt.ll be retur:1ed, c..cc::>rdi "1G t J the abe>ve schedule. The Eill-eau 2.1:.d the assJCi2.tiJ:;: :):r m".y :.lso fix the initial expense f o r i! lh."ttever nddi tiO!l
PAGE 407
-376VI. Proceedings: .A.ll designs, tradesmarl{s and names submitted for regis-1ration 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 lediatP.ly unon receipt of the an plication, together with the date require d0 it is examined by esnerts, checked with the files and a thorough search made to deit:.ermine it i duplicate or similar to one already registered. If it is subject to registration, a photostat is returned to the a-onlicant, with a s ertificate of registration; if it is not subject to registration, the article is returned to the stating the reason therefor • .Appeals from the decision of the Bureau may be taken in the manner hereinafter provided for. VII. Design Labels ani 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 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 d eali'ng with such matters as maldng of sam-oles, drawings and sketches and models, and marking of the above, methods of notification and similar matters for each 'industry for distribution to its members. IX. Appeals: Any dispute regarding rejections 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 fixe d by the Appeals Committee for the hearings in order to cover the additi-onal cost of handling the cletails and also to. elimi nate objections that are not made in good The memJers of this Committee shall serve without compensation. Whenever the . owner .shi of the de sign or mark nr name is in controversy or when arrange m ents are to be made for the cross-licensing of a design between one or more -oarties, the matter shall be submitted to arbitration in accordance wi+h the rules of the American Arbitration .Asso ciation. X. Complaints: .A.ny complaint regarding the simulation or. of a design, trademark or trade name, shall be filed with the B\rreau which will immediately institute an inquiry and endeavor to 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 Xl. Committee: Each industrial group or trade association shall establish a Design ection Committee to cooperate with the Eureau in the administration of these Rules and to recomm e nd alterations therein. The Committee may recomr1end the establishment of a separate division in the Bureau for handling registrations referred by its members, but such divi si•n shall b e under the guidance and of the staff of the Bureau and subject to these Rules. 9811
PAGE 408
-377-XII. :ct.e-. .Jresentation 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 resentative to be chosen by the association or group. XIII. These Rules may be emended by the Executive Committee of the Council on request of the association or group, and a hearing thereon shall be granted at its request. . ...
PAGE 409
-378TEXTILE rtEGIS'J:IRATiffii :.Bl.E.EAU. 468 F01JRTE AVENUE ., NEU YORK, lJ. Mr. A. l.ii ten thal Code Administrator, Handbag Industr.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 'Jriefly our plan for design registration as -re follou it u i th the Inci.ustri a l Desig n Re gistration :Bureau. First of all, I m ight say that this p lan is essentially to a;'.d therefore it involves a net hod of filing photostatic copies of designs nhich form q: fili: : g systeL1 nhereby ne'.7 designs after they are receiveQ, compared :ith t hose filed nnd given or denied registration. As you stated that the Handbag I r:d u stry did not nant com plete protectio:1 at this time, that is, compulsory submitta l o f every design, t i 1e service in this case noQld consist of r eceiving such designs as the industry desire d to have registered, thus establishing a of first use l o.t e r , if ctesired, could be use d b y your Code Authority as a means of enfo11ci11g ;your piracy clause, forbidding , I -unclerstand, the copying of design.s in the ind.ustry. The handbags are oubmitted i n n h a tever form you 17ish, together nith infonnation a s to 11hat are considered the "re::;isterable features;" in other \lOrds, uhat particular features of the bag are considered ne-r1 and chfferent. As in e very o tht:H'' P.e that ther e certain staple types of bags on Tihi c h no one is entitled to protection. These uould b e classified by the :Bureau as stal)les.. The extent of protection '7ould be that of substitution b y the average l ayman i n accordance n i th p r e vious l aid d o1m in Patent Office cases. The c harge, subject to confirmation by our Comn ittee on Desig n Re gistration, uould be probably $5 a desigr... th a fee of $ 2 if the design is rejected. This, ue believe, Tio u.ld cove r the expenses of the :Burec.u, h1 t lt is our custon , ' . 7he n extending this s ervice, to require a guarnnty fron organization requesting it t o the effect that any deficit at the enci_ of a Sl)ecified period shall be .r:l8t by the industry, and that this r;ua.l"anty shcll also prev ail if, a t tine, the s ervice is discontinued by the industry. We do not believe, hm7ever, thctt 1.'70uld be any occasion for the exercise of this guara11 t y if the fee is $5. I inf o:tr.11ed you the other day t l e . t t h e fee u a:s but I no\7 tha t the ninimur;J. for •.:e i7ill t<:e a neu service uill be $5. 9811
PAGE 410
3 7 9 -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 for the use of other industries desiring to avail themselves of our work. [f y our organization is interested, I shall be glad to take the matter with our Committee on nesig n Registratio n at the earliest onuortunity. :LB :MJ)P Dnclosure 'nl (Signed) Yours v er.y truly, I. L. BLUNT 'Director
PAGE 411
I ' I Report 9811
PAGE 412
3 o l EXHIBIT R . CO 'lPLIAl;CE ANALYSis , . Nb 9 0 0 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 under Cod e La dies Fandba Ind. 1. Face sheet Carbons of Co "Dlaints docketed at 1. . R . A . State O f fices Dates range from July 25 , 1 934 to Total number of face sheet carbons (One face sheet :rnaJ7 contain se reral violatirms) rvPe of Violation T"fage Groun Art. IV, Wages Art. IV, S ec. 4 Piece f2ils to eaual urn Art. IV. See king back Art. IV, Sec. 5 Redur.ing wages Art. IV, Failure to nay correct overtime Hour Groun Art. III Hours e xcee d maximum Art. III S ec. 5. Total no. hours for 2 emu oyors e . xceed max. Other Violations Art. IV. Par, 1) Home \iork Art. V. Sec. 5 Imnroner Class of Ernuloyees Art. V. Par. 1 Emuloying Hinors General Labor Provisions Total o f comulaints filed ... Comnlaints Code Authority DEFINITIONS: ay 24 . 103 5 To. o f Comnlaints 83 71 5 3 1 3 58 56 2 19 7 3 6 3 16C 20 8 7 2 lC9 A face sheet is a summary from prepared by a State Office to b e u l a c e d on to of the case file mhen a comulaint is accepte d for investie:atio n . I sho s the state office receiving the the-doc-e t nuMber, naMe of resnonden and complainant, the code violated, and g i e s a sUJTJ ary o f t he tyne n f al e d violation, specifying the article and parag r a n h of t he c od e nrovis i o n . by ____________________ _ Date __________________________ __ 9811
PAGE 413
Memorandum To Mr. L. S. Bendheim, 524 Barr Bld-g. From: J. J. Reinstein, AcJ, 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
PAGE 414
complaints, are reported adjusted a certificate of com :>liance is s ecured. Investiaged cases in T''hich no violation is found have Jeen reported separately since Juna 1 6 , 1934. Formerly they included n "adjuste d!' figur es. 3ookkeeping r e jecti ons: Complaints cleared from the docket for this code, Jecause of referral to Code authorities o r other special adjustment agencies tfter docketing. Complaints dropped from the special supetse:file with ; he permission of the Field Representati ve are also included. ieferred to Code Authority in first instance. Prior to June 16, 1 934 :omulaints referr-ed to c ode authorities in the first instance l"'ere included .n the intake, ancl reported as referred . to the code authority. After tha. t ate complaints referr e d t o officially authorized code authorities were eported on anothe r form, and were not here. i . R . A . insignia removed by State Directors, a r e reported only for service . rad.es in Phich trade practice provisions are suspended, and in the 'R.es .auran t trade. Date 3 1 1 1 /24/35 Statistics Section F ield. D ivision
PAGE 415
-381. TO 1. S. Ben:lheim _ _ . 524 Barr Bldg • . . FROM: J . J . Reinstein, Actir.e; Coorrii.h'a .ting Branch, Field t . R . A. Subject: Summary of Co!'!lnliance Di'isionand Re gional Of:t:i .ces cases (a) CODE LABOR TRADE PRACTICE LABOR .A1TD TRADE Docketed Closed by Administrative action (b) Referred to Litigati o n Blue Eagles Bemoved On hand Hay 27 , 1 935 13 6 5 (3) 2 1 0 1 0 0 0 0 0 0 (a) Prior to 2"a : n
PAGE 416
CODE AUTHORimY LADIES 1 HAN D B A G PJDUSTR Y 3 47 'Fifth A ve nue 1 ... e w Yorl-: STATISTICAL REPOR T Sep temb e r 3 0 , 1934 Number of Investigation :fade rJon-Cor:1pl ience Cas e s pending Non-Compliance C ases close d Restitution: Number of firms Numbe r of individual employees Total amount naid Approximate amount pending !-!umber of Manufacturers N umber of contractors Apuroxima te l iTwnber of Workers 'Sr'lploy e d in the Industry N umber of Phone Calls Per Day of personal intervie,.,s :oe r d ny Octobe r 31, 1934 Number of InvestigA.ti ons Non-Corl'lpliance Cases pending N on-Cor11pliance C ases close d Restitution Number of firms Number of individual employe e s Total amount paid Approximat e amount pending N umber of manufactur e r s Numb e r of C ontractors .Approximate Humber of Dorkers employe d in the Industry Total Number of labels distributed as of N ovember 2, 1934 Number of p hon e calls per day P ersonal per day 9811 r r-; L 567 58 1 0 5 43 814 $11,39;:).53 d; s .ooo .oo 325 173 15.800 42 36 807 72 130 47 9 0 1 tl3. 0 24 . 22 $ 1 0 , 2 0 . 00 498 1 73 1 5,800 15,533,800 45 39
PAGE 417
. • . CODE A U rHORITY LADI E S 1 L'DUSTRY 347 :iPift.h Avenu " Nev:r York S TAT I Si; I CAl,. REPORT N ov embe r 3 0 , 1934 Investigations -nreviously reported l'Tumber made during N ov eT"!ber Total 807 274 N umber W on-Compliance Cases B ending 72 T,1..rnber Closed During Novembe r 90 Restitution Nu.rnber 0f firms Number o f Indivioual "Smployees T o tal .A.i1 oun t Paid Appro:xilJJe:tt e A.i:J.Ount Pending Analysis of Industr y -Number of !anufactu r rs N umber of Contractors A puroxirnate Number o f To tal l:JUT!lber of L abels :Distributed Office Routine Numbe r of Phone Calls per day Personal per day 1021 53 934 $ 1 3,347.39 ffiio,ooo.oo 332 165 1 5,800 19,528,800 48 41
PAGE 418
Investigati ons --CODE AUTHORITY LADIES 1 HAliDBaG IlffiUSTRY 347 Fifth Avenue Nerr York STAT ISTICAL REPORT H umber n raviously re:oorted J urnber during December Total Number Non-COJT!Uliance cases Pending Close d during December Restitution N umb8r of Firms }TQlJlber of Individual Employees Total Amount Paid amuunt uending Analysis of the Inclustry of Hanufacturers :Jumber o f Contractors Approximate number of ':"or!cer s employed Total number of Labels Distirbuted Office Routine :Jumber of uhone calJ. s uer day Personal intervieVI's -oer day January 31, 1935 Investigations -Number previously reported Number made during January Total 1021 326 56 49 14C..7 459 N umber of N on-Compliance Cases pending 62 Number close d during January 26 9 811 1347 60 1 00 8 13,891.14 $ 12,640 . 1 1 33 2 165 15, BOO 21,155, 000 36 41 1866
PAGE 419
. .. . CODE AUTH03IT".( LADIES1 Hhi'JDBAG INDUSTRY 347 Fifth Avenue T-e, York January 31, 1935 Restitution-Fumber of Firms NUJT1ber of Individual EmployeP s Total Amount Paid Apuroximate amount pending Analysis of the Industry -f'u.'Tiber of Hanufacturers of Contractors :Approximate nUJ'Tl.be r of ,o r l::ers employed 63 1 , 031 14, 625 . 84 $13 , 480 .('{) 332 165 15,800 Total nuTTJber o f labels distributed a s of Januarv 28 Office Routine --Average numbe r of phone calls uer Average number of uersonal uer day 39 I 28, 1935 Investigations _,umber previously r eportec! Number made during February Total r umber of J on-Compliance Cases Pending Nwnber closed during F ebruary Restitution-of Firms Number of Individual Employees Total Amount P aid A puroximate amount pending Anal sis of the Industry -Jumber of I"anufacturers _u.mber of Contractors ApDroxim Ette U.l"lber of \uorkers employed 9811 554 9 1 22 64 1,033 $14,668. 30 $16 , 000 .0() 337 175 15, 800 241 901,00 0 2,42 0
PAGE 420
3 8 9 CODE AuTHOriTY LADI.SS1 r:nUSTRY 347 Fifth Avenue 1Tew York STATISTICAL REPORT February 28, 1935 Total 1Tumber of Lc=tbels distri.buted as o f February 28 Office Routine -Average Jumber of phon e calls ner d a y 36 A vernge r u"lb e r of uersonal interviens oe r day 37 9811 28,590,500
PAGE 421
-390-E X H I n I T S ------Interpr c t e.tion -Order 332-10 9811
PAGE 422
Name of Code : Facts: QUESTION: I O N : RECOMiviENDED: EXHIBIT 11S11 NATIONAL ADMil,ISTRATION no. 332-10 Ladie s Hand Ba g Indus try, A p ,)rove d Code N o . 33 2 Part: Article V, Section 10 Code Authority of the Ladies Hand Bag Industry, 303 Fifth Avenue , N e w York , New York It is ?rovi ded in Article V, Section 10, of the C ode of Fair Competition for the Ladi e s Hand :Bag Industry , in tl13. t 11No member of t he Inclustry shall g i ve out work to be performed i n a ny home or dwelling p lace, except that this prohibition shall not apply to hand -beading , hand. crocheting, or hand-e r.1broidery . • • " and it appears t:ha t certain ty-pes of hand bags are rnanufacturered from numerous pie c e s of leather, linked together, b y a process of interlocking by hand and that said process is sometimes lmown as 11hand-crocheting11• Is the manufacture of ladies hand bags from numerous pieces of leathe r linked togethe r by a urocess o f inte r-locking b y hand included under the t erm "hand-crocheting" as use d in saiu Drovision of said Code ? It is ru.led that the manufacture of ladies hanr. bags from numerous :pi e c e s o f leathe r lin2.;:ed together by a process o f interlocking by :1and shall not be include d un de r t h e t erm llhanc l-crocheting11, a s used i n s a i d provision of said C ode . APPROV:lD: EARL DEAr HOWA:iiD (Sig ned) ]ar1 Dean Howard SOL A . LATT (Sig n e d) Sol A. Rosenblatt Division Administra t o r Division U o . 5 . Deputy Administrator 9811
PAGE 423
-392-3 X H I 3 I T
PAGE 424
EXJ-iL 3IT 1'T" Am u.A.l u ccrnne c t ion FEJ.C tory Location of Sale s GooGs i f b d . Volume S . Mut Pres. New Bed.$1. 00 Sol, ))!rutte r::_Jerl, Inc. ford, I : iass. 330 Fifth Ave., N . Y . C . G. Meyers, Pres. So. f orwaL.:, 1. 0 0 eyer s Co. , Inc. Fifth Ave., J . Y . C . * M . Pres. Styl e craft Leathe r Goods Co. 50 1 Spvent h Ave., N . Y. Scranton, Pa.l..OO"' 650,000 900,000 750,000 :::;nnlo ees: 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, Treasurer Hud.son, H . Y.l.006 3 .00 900,000 100 Kad i n Brothers Inc. 1 32 West 36 St., N . Y . C . M . H . :Blu;renfel d , C hicago,Ill. 1.00 fJ:. 3 .00 200,000 78 t ; i i r _ o Leathe r Goods Co. Inc. 402 So . !Jlarket St. Chica&o S. R . Gol dsmith , Pres. Allentown, 3 . 00 to 5 . 00 600' 000 400 Gol dsmith B r os.hlf g .Co. I n c . P a . 38 West 32 St. N . Y . C . * J . Michel, ?res. Clinton, !VIa.ss. 3.00 & 5 . CU' 1,000,000 325 1ichel, Maks i k & Feldman , Inc. 159 Madison Ave. N . Y . C . I . Schoenhol z , Pres. New York G .OO & UpY1ards 75,000 Scho13nholz & Weeks , Inc. 1 5 East 32 S t., N . Y . C . R . Koret, Pres. NeVT York 3 . 00 &. Up:;ards 45'), 000 250 Koret, Inc. 33 33 St., N . Y . C. ... I .... ":) l"ew -ork . raan, _ res. 5 . 0 0 J. rp 'I r d " 150 , 00 50 ft;. Inc • . 30 East 33 _ . C . M . Magid, P res. Hew York e a d B a r s A . I . Magid Compan y 1 4 East 33 St., N . Y . C. 9 811
PAGE 425
Name & Connection Factory Location -394Annual Kind of Sales Goods Mfgd. Volume :&nployecs: of *A. Greenbaum, T reas. 3ethlehem, Fabrfc Bags 800,000 132 C hic Bag Co., Inc. 6 East 32 St., N . Y . C. *ADpoin ted by Admin is tra tion Liember but a inroval not Given until a few days before the close so that these men did not sit Ui/Oti tne noard. The following is a gen eral breakd ovm of the industry o n dollar volume basis: 9811 Bags sellinG u p t o $1.00 at retail Bags selling frcm $1.00 to $3.00 at retail 1 , Bag s from $3.00 to $5. 00 a t retail Bags selling from $5. 00 a nd a t re tml 10;; Beaded Bags 0; of above total percentage Fabric Bags 15,J of a bove tote . l perce;,1tat.,e
PAGE 426
X -I 3 I T U ? a:u l Abelso n 1 s 9811
PAGE 427
Dr. Paul A b elson Specia l Milline r y :Bo a .rd 8 West 37th Street N e w York , N . Y. Dear Dr. Auelson: -396EXP.JBIT 11UII A pril 1 9 , l 9 3 4 Y our a 1 ) :s>oin tment as Admi nistratio n Memb e r to t h e Han d b a g Code Authority i s n o w f;O ing thr o ugh. I nill w rite Mr. i J l i ttenthal to t he . t effect. I am very anx ious that t l'l. t Coc.l.e t y s e n d me at the earliest oo ssible t ile definition the;y for the semi-s killed workers. I have j ust SU.gested to the D irector o f the Nien' s G arter, Suspender and :Bel t C o cl.u Au thority that he with y o u conc e r n ing im:9e n d ing labor c h f ficu l tie s of cer t a i n o f his members. He c ame to me for advice and I ha:Y•)cned to think that here was a little si tu.a tion t hat m ic::;h t intere ct :'J'ou. The ,entlema n ' s nam e is Mr. Kendrick w h o is well kno v m t o us a n d for wh o m vJe have a v ery h i g h r e g ard. , , I g 98 1 1 Y o urs v e r y sincere l y E arle Dean H o 7ard Deputy AC:_lTiini s tra tor
PAGE 428
NATIONAL rtECCv:; J.Y AD;,ii F IST3ATIO. S)ecia.l I.:illi:1er/ :Boar d Under Executive Ordar of lS33 8 West 37tn Street Dr. Sa.rl Dean Ho,-,rar d , De:pu t y Ac1_;11i n i s t ra tor 3''i YORK CITT kJri l 18th, lS34 National Recover:' A c.ministla tion, D . C. Dear D r . H o v 7ard:I rlB. v e y our l e t tel"" of t h e l 7th ins t . concerning the Hand Bag Code. My information i s tna t the meeting of tne Code Aut,10ri t y schedul e d for April 1 9 t h , 1934 has been post oned because of the absence o f the Chairman of the Cocle Aut11o1 i f .:.om the City. I n the mea ntime, Mr. P earson v v ho had told me about the mee t ing o n Thursday, had a1ra;.1 gecl for e. meeting betwee n l1im, myself and a group of manufacturers, some are o n the Cod e Authority some o ut. They s:9eak fo:;. the 1 a tiona l As so cia tion o f Ladie s1 Han d 3a6 Manufacturers. ,'ie snent several hours with them. Asid e from t h e j ealousics desires for paying jobs on the Code A u thoritJ , I ;atl.1er t !w.t there is a basic conflict between thes e o u t of tmm manufacturers a.ncl the e York people. I have o f c ou1 s e ex:9ressed no o :Ji-1ion but suggeste d that an effort b e m ... :=tde to have harmony vli thin the Trade befor e these peo p l e :i."Ull t o Wash i n1:_, ton and t :ry to b lock the wor k of the Code A u t hority a s i t i s at Dre sent co11sti tuted. Howev er, this need f o r harmony within the Cocle AutJ. ori ty ught not t o interfere with the of a definition of the t e rm 1 semi skilled Cffilloyee 1 • If you have not r.rr i tten to i'r. . i ttenthal, !Jerhe.ps it 7ou l d b e v1ell for you to v iri te h i m e.s you did in the case of the Infant s 1 1iear s o that they may kno7 of the Administration ' s decision to have me the Admi nistra tive membe:c on that Code. I sh...,ll communicate with Mr. M ittenthal, nevertheless, as you sug.;est . May I s uggest that i f writing to me o r matters othe r tha n Specia l Boar d that you add ress let tc s to my office, f,bll West 42n d S t r e et, New York City. I 2-'11 not ah1ays at the Special Millinery Board i n the mornin.; so tha t corru:runicatio!l!S frol"l you mi ght be d elayed i f you continue to add r e s s t hem to me at #8 37th Street, New York City. PA:g e 9811 / s/ Ver:f s incerely yours, PAUL .A3ELSOi
PAGE 429
-398E X I I T ' V Cod.e Au t l 1 o ri t y Report Vi rginic\ Art ."i 9811
PAGE 430
-399-EXHIBIT V August 31, 1934. Mr. Leig h 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 amend ment to the Code of Fair Competition for the L adies' Handbag by adding to Article IV of the Code, the following section: ( a ) In the States of Virginia, North Carolina , South Carolina , Florida, Mississippi, Louisi8na, Alabama , Tennessee 2nd Texas, the minimum wage for unskilled employees shall be 30 per hour. (b) The minimum wage for semi-skilled e mployees 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, provided that the nULber of such s hall not a t any time exceed 15 per cent of the entire number of employeeso The petition was supporte d by the following documents: (a) Copy of letter, date d March 30, 1934 , f rom Robert D . Ramsey, Business Manager of the C hambe r of Commerce of Lynchburg , to James C. Worthy, Assistant 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 Studios, Inc. states that a copy of its petition was als' o sent to Col. H. s. Eerry, Deputy Administrator. 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 o: the Virginia Art Goods Studios, an amendment to the Code 1n wh1ch they request: 9811
PAGE 431
( .:-'. ) (b) (c) -400t o b e gr<:nted differenti.:-.1 in WE:.ge rD.tes in f e w o r of the sou tl1er:n territories. t 0 fix a minim u r n 'ivE:.ge for semi-skilled worker s at , 37;:.; per hour. t o learners veriod of ten weeks at a minimum WE'.ge o f 21!-hour 1 not to exceed 15 percent of t l 1e entire number of employees. Vi rt;;inir. Art Goods Inc. in support of tl1eir : petition clcO>.im t lir. t mcnufC' . C tu.rers of L.ve skilled lr.bor wl1o work wit:n 11speed whicl1 ce....'1 be .equalled only by e0ur.lly skilled Fift,..r of t:u:J i ndustry is locc:.ted outside t .ne metro _Jolit<"'.n c.recO>. of Yor k in wh-ich no eJ(_oerienced help is C'.vn.il?.ble, C'.nd t h e mMUfcO>.cturers obtain their workers in the s.:-'me mnnner ?.s does tl1e Virginic. Art Goods Studios, Inc. In tl1e tc>n areC"'. of New York, in v1hich experienced is .::. vr.ilnbl e, the VlcO>.ges p?.id such : 1el}) is from two to times more tl12Jl pi'.id the inexperienced help. The Virginie. Art Goods Studios , Inc. cl<:'.im t:1e . t they are pioneers in t heir loce.lity. The record s s how s firm oeen e s tc..bl i s lled over eight years, end t l 1 a t dv.ring t:1 e five ;yre ..... rs, tJ.1ey :C.<'..ve enjoyed<'. le.rge volume of business i n the industry, a t times as mG.ny as 168 workers. These workers r.ll l1a d some training by t h i s time 1 nnd e.re av<:'..il Rble mostly at t h e minimum w : g e r!".te. T'ne question whether tl1e labor in Virginio., com}l?.re wi t:':l ' ''orkers in volume in speed of tion. is n o t cleterminc.bl e 1 since the kind E'.nd quc.l i ty of work v'-.ria s in er. c: 1 fc.cto r y , E'.nd lr.ck of production frequently the result of inefficiency in mE:..n<:'.gements c>.s been disclosed t hrout-1 i nvestiGt'.ticn r.lc:'..dc i n other. industries in which si;nilar cla i m s h2.ve been mP.de. Tl1e st<:'.temen t of t:'le VirE;ini.'"'. Art Goo cls Studios 1 Inc. thl'.. t u the :pr acticcO> . .l eni i nevi tr.bl e result i s th<:'.t t > .. e Virginia Art Goods Studios, Inc. c pnno t successfully with other me.nufR c turers wl1o se out t per CC'.:_J i tE". of employees is so muc-::1 gree.. s merely ex)resse s opi n i on. T ' 1 e loss sust['.ined by Vire;inic?. ArtGoocl..s Studios, Inc. during the ye". r 1 933 m:--.y : :c"..ve been due to <"'. d e zen o:c .mere C['..uses, ond to hE1. Ve Coml J[ln y cl['. Ln such losses resulted from incre<:'..sed labor costs, is merely e x )re ssinu :--. c onvenient conclus i on. Any increi'.se in le.bor costs mi g > t b een inclutied in t h e cost of their or they mcy h ave offset t nis increE:.se by t2kint;; 't:1 e difference out of the v a l u e o f mC'.t erir.l s, if t:_e y f r'.il t o do so , CC'nnot justly e. t tribute it to i ncreo.s e d l::.o o r costs. 9811
PAGE 432
-401-From the figu:tes furnished the Com)t'.ny of sc.les ,nd s'..les costs, it would t h r . t C'.re ,;.Jr icinb t:1eir goods wi t !10ut <'. sci e ['.lld r>.clequr' .te profit. The test of efficiency in worl;:ers by t'1eir prJductio n mC'.n<:'.ber, is n o t bc.sed o n fc.cts, it is merel:r ex-.:_Jressint; individuc.l opinion. Tl:e statement prod.ucts of t.1 e Co11T;_J.nufe .c t L.red by o t_ler firms in the indus try, '..nd further they '..re pro tee ted by vi1ic' 1 1 C'.Ve :'.. t tested t o . Virginic. Art Goods StucU'Js , Inc. de <.'. .:;oc d volu..rne of business end c.r e r<:'.ted fL1r>.ncir.lly i '.s one of the outst <:'.nding firms in t:1e in G.ustry. It is not necess.--.ry for Vi r;.:;ini:--. _rt Go.:.c" s Stucl.io s , Inc. t e o b -t:--.in lower we.se re. tes i n orde r to C0. 1 J;->et e with f['.ctories in the northern territory, c.nd the thc. t t '1ey suffered 2. sm['.ll loss during t : 1e ye ..... r 1933 is d:Lle t o t :1e St'-' e rec.sons t':r-. t cc.used ot:i1er fr.ctorie s in incJ.us t r y to suffer lr.re r losses, .--.11 dl.J.e t o L 1e r_.,_c t thc.t are trjrinb to t;ive t o o g re[l. t V['.l U eS c . t )rices. t o emenC.. the Cocl.e te --.lJ.ow :->. w ..... ,; e r.:--te of for semiski11ecl workers CC'.rmot be considered since t : :cre is no definition of <'. sem i -ski1 , _ ed v;orker in t ! 1e Code . T : 1e reque3 t to emend. Coc.le t o perrni t 1e--.rners is denied by t1e ode Au t11o ri t y :::. t t :1e t time, .:-.nd until the Cede s}lr.l1 be nmcnded by <:'.greenent wi t:1 t :1e Administr t 0 T to 2:1rovide 1er>.rners for tl e entire industry. T:1e V irginic. Art G ooci s Studios , Inc. :1.-...s been O)Cr"ting under ". st:::..y since tl e effective dc . t e of Code, Lic.rc: 1 2 6 , 193L 1 . Tl1 i s st'..y ex )ires Se::_:)teober 1, 1934. The Code ty :protes t s F'.bc.i nst t h e c on tinuance of t his s t .::'.y beyond Se:ptem'oer 1 , 1 S34, since tl e irG ini'.. Art Goods Studios, I n c . h2.ll entire cnth o f Auc, st ey rllij.1 t :1e.ve submit ted t : .ei r Y)C tit i o n . f['.il ed to d o s o until August 27' 1 934, t:1ej' . " . l'e Low reClue stinc t :; r . t ele exem)tLm J.:leriod s:1ou1d b e exte ncled. t dt.te r . s ..,n tici9[' ted :1:::.ve b een l1elo., L.e )I''" _)C sec. rendmen ts di SlJO c;ed of. 9811 V ery truly you s , C ur .... RI T Y LJ..DIE.S I ::XJJB . G Il:DU .:>TBY A . ,ii t teH t :'.1 C le :t:hr e c t.Jr
PAGE 433
9811 -402-Brief, answe r to the same; correspondence on the Meeker Comoany
PAGE 434
-403-s r T u 11 ,:;o,!P_ Y, L TG. line Le atnc r Goods _ ISSOU.:d Conditions affecting the oper ations unde r the L\..UIES H .\..l{DBAG DJDDST.dY ]o. 332, adopted :/arch 14th, 1934. The follo.-;-ing are some of the ho.ndiceps unde r :-.hich the \1eekf' r Company, Jo_9lin, are operating, due to their isolated position 1n this fie lci of manufacturing. of tnese handicaps 1:•er e give n any cons16.. e rat ion in tne formation of tnc Co.ct reJ_ b :r conc;;r .. 1s L1 City a.nd tllat i • Ded.iate vicini t :r , -:her e there aper, but tpns, o a cki:.1 t; c loth , ce_a,:.nt, zi?:J:;JOrs , 3.::.1-a. fe: othe r ite1 s , are _:)u.rc.ased in :.Te:r -.{or'<: City ..:-..n d i:1 the Ie'. • St tes. The .. ,eeker COJ:rpany, in T•J.rci1c..sL.1g s cl1 mc:.:.teri als, is hmdiccx9_9ed in CO!!lpeti '.-ri th the a ct-.,_rers, in th9 t heav 1 L. -'ht, ex-press and. parcel _Jest ch::.r&es ae. v e to o e ci1a l"ges tha t t1 e ?e;-r Yor);: ;u_c?m : u acturer cia es not 11ave t o 'Je .'J.". Tl e s e c c:rges, in ; G.li t ion to traveling e::penses g o li1E:; to -:1ar'-:et , t e legr:-_?h and othe. e :.:_)e 1ses, amounted to 2 . 2 .) of ou.r gross su.les for the :le:)r 1934, a.,1 d e tne :<:--r lor1-:. mc:.nufacture r does not h ave. bei:1g <...styl e cm1t vr, it 1s l'lecesSclry that the se1 1d re}rese!ltc:.tives to "o r'c J1ty •nd vicini
PAGE 435
-404! e hav e ay:pe.J.led to the _.\.dmi :l i s trc:tors i n ;c;.shington and t o the Code Aut hority for thE: ladiE:s 1 h:-.n d b urs Code, located in Nei-7 York, f o r the p rivile c e o f e m ploying l e :.,r n ers a t l ess th21. the 'ninimurn r:age tile Cod e c a rr1es, but h ave in e v e r y been t u r ned. < i o u n or our plea s entire l y 1 g noreC:.., althoug h t h e Cod e tha t is no ' ' in e f fect provides tha t the Adrnin. i str<..tor Jnresent a r e em:9loying <. Anoth e r h andicap t o 1 7hic h co:1sid.e r ation shou lG. be :?ive n is on account o f our long distanc e from mat eric . l are com pelled to c arry heav y inventori e s that t h e ec:stern mc.-::.:1uf actu r ers do _not have to carry • .de lative t o a nat; e houlci b e 'uorne in mind. that the c o s t o f liv ing in Jo:.;>lin, is much less than the cost o f living i n the east e r n and 'metroooli t.:m c ente rs. If ':7 8 :..-ere conc eded the d.iffe r e ntia . l ; hich our h<.illrtic'.::pped. :yosi tio! 1 in t his field of IJa n u f a cture indi c p t e s a.r e entitled to, r:ould b e in 8 . position t o Glilploy Jaore l a b o r tha n :' e p r e a'ul e t o emplof L t present, as • : : e cou l d again resu m e lL1e s ne have to .:--;.iscontinue , t l1us being ::1ore of a benefit t o oar c ommuni t ' 2nd b e on a bette r oasis a s a firm . 9 811
PAGE 436
-405The i.ieek..:r Com_panf I.lcS bee n ln uu . ine s s nor e t.t m t 73n t7f i ve years, onci has n e v e r bee n loc.:1.t ed . her e e-..;:cept here in Joo li.. Our products are sold to cie_)ert:nent store0 q nort:.nce is i s elli!lg our oroduct in som e of the bie; s.,;.stern cities, City, to 1nrke such s c l o s . e c.re co:nyell e d to oJ.y tha trc::ms_Jort.3.tion cha rges to ti1e cus tomer to eq.;.a l ze the transportation cost ,i th tL v. t o f tne ma1 uf in Yor k close to the cust01J , :c ' .. no ion charges -1.:st in c neas u r c , ho;r to the . ork they are doing in c: voh:Lne . Of co :-se, in these other line s ';'lle r e there are a lot o f sho e fc"ctories in tne st tt: , a lot of gar:Jent m anufcct-c..rers in the ste.te, t lle _ r haL. snfficiant :ce_J:ce s entution \ !hen their co
PAGE 437
-406c 0 THE lAEErR CO ANY, IlJC • J o p l L1, p 2 ' i.'ir. Ho' ;iell Chel1ey Industria l Advisor . .r Board Ne.tionc:. l :rtec ov ery .AC..runistration Washington, D . c. De..:.r Sir: i iarch 8, 1935 With reference to you r recGnt co!mJunications relative to our position 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 learners at less than the minimu:11 .-;age. ' ."!e wan t to kn01" i th2 t ; e full: r CJ.:?preciate the interest you are taking in our c a s e . It is the first ree:1 . l interest that J.l a s ever been shol. ' n by anyone connected •:iith the .AWn.L1istration, -;7ith none shoYm by the Cod e Authority. ":Ve particul.0rly the advice in your letter of Febr-v.ar J 19th the. t "ife endeavor to inte r est .ndbag Cod e , is enclosed. T:1is 1ill sho-i you the attitude that then prevailed as to o u r contention for a differential, and ap'9arently the reason it ':'l a s not incorporateD.. in the Cod e it , .. as finally a dopte d . 9811
PAGE 438
I f .:ill be t:;ooG. enour:-h to :-e t u r:1 t h i s l ettv r 1 t till be au9reci a ted. T h e c:nc;_ sentlmt?_lt o f i.1r . i! l C t G .1t L Y . l .).S o-..1tl i n e•i i n this l e t t e r m i g h t be det rim.e.1to.l to h im .:e r e ti1e content s o r this l e ter gem. r v m . I f . the iJE:"-; Yo:cl:: s ;e r e i n c linea to b e f;..,. ir-minded ton2 rrL us as a coJo e t1to r , sl1oul< i to our p o sition in t nis f i e lc. o f 'lc.n u.fcctu r e . '-'e d o not :<:no:; ru 1 2 t their cost of manufa c h.:rin g is. 0 :1r co s t li;JS;; littl e :nor e t h<.1l1 of our s a l e s I last ye::;.r . A s h<:rv e t i m e and aga i n :1QVlsec. the Cod'3 ty a n d t h e 1-J"rt.A. officL.ls 1.7he 1 t ::V 8:i.' ' .ie h._.d. the O;;J)O rtuni ty, tha t p r a ctically ?.11 of our s upplie s a r e b ow:;llt i n i.Je.-r York O i ty tha t i mmediate vicini n e c e s sito..ti:1g Leavy c h:-rges that the i.TeY l York J :Janufacture r d o e s not have to A l s o i t t a kes time to get our m c t e r i als, and r e quires th2t rre c ar:-y heav i e r invento:-ie s , 8 . 1 1 o f ':h ich shoul d be give n consideration to i f i t is 1 n t e ! 1cied. thet Yie snoul d b e 0 1 1 a f2..i r c o mpetitive b asis. As for the v ario".ls f actors enterin g into the labor turnover, our situation is f rom the :.,;e-.'i York m a nufactur ers in thu t the y h ave e:-p erienced th:::.t is idl e , :i l l i n c t o b e e m:9loye d , that they c a n s ecure . \.'ith us o n account of tbG sec:.sona l v ariations, it is impossible for us to a t all t i;nes J<.l.intoin our :...'.:.ctorJ forc0 , ; i th e:cpe r i ence d h e l p , and o u r contention i s tha t • ;n e : 1 •ie a .r e compelle d t o e m ploy lea rners w e shoulcl not hav e to oa--th e .. 1 ti1e minimu.:n tha t the i: ew Yor}-c m e.nufa c turer can gat skil l ed. h e l p f o:-, u ntil they a c quire som e deg ree of skill. 17e h2.ve little :1o _Jes o f o o t . a n y r e l i e f t h r u the Code Au thori t z ' . 'En e y .'.I't; )t::':; Yor :".: : a e:1. t horo..tchl y .._':-.mil i a r ,;i t h Nerv Y ork conditions, inte r e s t e d i:1 :r:::w con
PAGE 439
-408-We r.J'Ou l d hav e no cause to comp l a .in r e lative to the Code if Tie had a different ic.: l t o rhich -r:re 1'::nov v;-o a r e entitled , and if \7e coul d get e-uth o r i t J t o employ l e.,;;r n ers a t l e s s than t h e minimum l . 'a,g e for a time until they c c n 'e t nith our uork :md be able to ec..rn the minimum o r mor e . iJe are not a s king that the Code be abolished unless ger r elief. o nly ,,an t f air t r ea.trae n t under it. We shall endeavor to follo'.7 your a s to the .::.gencies D e may b e a . b l e to interest in exyl aining our si tua . t ion a n d confirming our con tentions. lie ' . 7 o uld b e v e r y g l ad. to have a government investigator come to Joplin and g o ov e r t h e \!hole s ituation, in f act, it is just w h a t we n o uld T:'1e government has seen fit to ellow d i i' f e r ent ials in n ec.:rly e v e r y other line o f industry , realizing no doubt the necessity f or the s ane. T here isn't c..W1othe r industry in our p art of the country that has the hig h minim u m v1a g o that vre hav e , e .nd in nearby toYrns there are s h o e factories, shirt a nd. garment factories a n d in o u r o w n tov m ciga r fac. tor i e s . In connection "'r i t h the ' 7 hole m atter, u e fea r , 7 e are not presenting the situat ion i n a . s orderl:v o . m3lln e r as y o u uish, or as the 1-:RA. c. utho r it i e s >;Fould li1c e to h ave it :9resented. Sho uld there be any question s of any n ature you ';ioulc. like to ask, or a n ; t :rou would like to hav e us !nake , 1;1 e , ; :ill •i!e l c o m e the of a.:1snaring or maJcing the s cme • . \7e don't na:.1t t o ciiscontinue t his line of ID2 l1ufacturing ; -rre would h ave little busin e s s l e f t cmd would hav e to thro' :.r a lot of people , n early all o f t hem t h f e . mil i e s d e y ending u pon t h em, out of employ:.:1ent. You r further co:rrment s or a dvice o n tne situe.t1on nill be au p reci a ted very ::1uch. 9 811 Your s v ery tru l y , Tl-IE .rLEKErt COi .il? AlJY, I N C. C. President
PAGE 440
-409-i; a :rch 11, 193 5 l .ir. c. i, eeker, Pres ident Th e i;ieeker Comyc:.ny, Inc. Joplin, i:iissou:ri De.:ti Sir: I 2Jn in recei:9t of your l ette r of 8th .rr ich must have crossed mine of recent date. I note the lette r from the p resent Code Authority to you, which I return th. This do e s give em illuminating vie'" both o f the vicissitudes through which the Code has p asse d and.. of the attitude of the Code .Authority to.1ard your peculic.1r problem. The letter "11hich I hav e a lreaC:.y .rri tten you \/ill h ave covered the subject o f q n application to the Administrator for the setting u p of learner provis ions. This cG.n be duly filed \?ith the suppo:cting e vidence nhich I have sugr,ested to you. I am sure thut the matte r will receive most c a rcl f u l consideration. .?l1a t the results will be, I c annot p redict b ecause jus t at the u resent time the continuance of all code s is under serious &ou bt. I n regard to the establishing of diffe r entials betrt e e n i\1issouri c;nG. the E a .st, it .wuld oe n e c essa r y for you to present t h e following evidence, oc:.cked by z..ffidavi ts o f r e s ponsible p a rtie s othe r tha n yourself: -l. iJages no .r being pc:.i.stern t e r ... i tory . 3 : Zxpens • JS othe r than l.J..bo r costs in ym.J.' region in e}:cess of Bas tern e ::-p e.11se s . I h ave asked the Resea rch end PL .. nning Division to accu mul a t e som fiF,Ur e s in regard to the p e r cent o f labor costs to the tote l costs in the Zastern Di Tis ion and hope the y :;ill be able o secure this infor!nation. The remainder of the infon'l'J ation you H o uld have to secur e so that it could be or e s en t e d 1n b r i e r fona, sup9orted by the necessary affidavits. As y o u point out, the application for learner provisions a r e '" i thin the u owers of the .1.1-d..:ninistr.::ttor to A:p_plication for the s etting u 9 ci.ifferenti als, I bJTI a f r aid, nould requir' a n amencl ment of the Code c.'nd this n oul
PAGE 441
981 1 c 0 p y -410-COD: ALJTHO:ct.ITY I H.\}JD3.AG Il{J)UST .. tY i'IFTH YORK April 26, 1935 Mr. 0. W . Pear son Artificial ?lo--fer & Feather Industry 8 West 0 7 Street Ne,.-.r York City Den r i:Ir A Pearson: The i , ie eker co . hc...s petit ioneG. ti.t e .Adminis tration for permis?ion to e : 1 ploy l e.::rners a t less than the Code .:ages. A cop y o f their r equest i s att e .ched hereto. i . . ill ;-/ o u kL1dl y indicate on this notice, ' Hhether you approv e or dis a yprove g rantine; the request of the i1ieeker Co., o.nd r e turn to the office of the Code . Authorit y . .A.i-t i : A S enc. Vel7 truly yours, CODE _4_UTHORITY A . Mittenthal Code Director I APPROVE the petition o f the Ueeker Co. to employ learners at l ess than the Code uages • . (Signed) ______________________ __ I DISA.PP .. OVE the p etition o f the i 1 Ieek:e r Co. to employ learners at l ess tha n the Code '.7ages . (Signed)
PAGE 442
9811 -411-c 0 CODE AU;rHO _ ITY LXDI3 S 1 G I:rD STRY 34? 2IFTE _ VENUE y Col. TI'al ter l.I2.ngu;n Deputy Adninistrator Comi 1erce Building D. C. Den.r Col. bl.:mgum: -m YORK .April 26, 1935 The Cod e Au tho:ri t y ha.s denioG. the :9eti tion o f the iAeeker Co., Joylin, i Hssouri for to employ rner s ut less than the Cocie ';iages, for t l e follo :ving re..;.so.ls: "Joplin, iissouri is locu ted 1400 11ile s fror a City. Practically ['11 ladies 1 hu1dba.rrs r-;r e manufactured concerns in Ne 1 York City c.:nd thc-t im med i a t e vicinity, where there are several hundred manufact u r ers, la:cge and s:uall. 11 \Ve c annot agree th;J.t a n y ua!lufacturer is 1ancl..ic['pyed by beinr; loc.1ted 1400 r.1il6s fro York City. New City is not t l e geo g r c:9hico..l C8nter of tne United States, a n d n either is it the distrib 11ti!lg center for the h andbag industr,/ i n the united Joplin, !.1issouri is mor e centrally located for distribu.tio n the n a r e factories locc.tted in York City. It is true that the Eeck"" r Co. mc:y find tha t are at a for distribution ln the Jeu or ivfiddle Atlc:.ntic St,_ tes, hnt theJ-' e njoy ::. n equal advan tage in the Middle :est I so-l tl1 '713S t I Nort'• '-!est and Pacific Coast t e r ritories. The L1eece r Co. employ mor e than 18 traveling s alesmen nho concentr0te on tnls territory. 11Neerly 01. the u sed in fo.bricatinr, l a ciies1 lal1d ba "s, consisting of lea tl er, met2.l f rames, silks, mirrors, paper, wadding , buttons, b 3cking , cloth, cem ent, z ipper s , a few other i terns, are ::;>urchaseci in Ne.7 York City and in the .c e'.7 England Str;..tes. Th e l1Ieeke r Co. in purcno.sing m ateric-ls, is n 2 ncli capped L1 compotition . vith the Ne1..r York manufacturers, in tnat freight, express and parcel po •. t charges have to be paid; that tne York .nc.nufacturer cloes not have to bear. These cna.rges, in c..dciition to traelin;; e;:>enses going to mer et, telegra9h and otne r expenses, anounted to 2 .2o of our gross s ales for the year lS34, an e:pe.'lse t11e rTen Yor::..C m . n does l1ot have. NGW York bei:::l6 a style center' l t is .lecessary t a the
PAGE 443
9811 -412i.Ieeker Co. send re:9resentatives to He'.i York City and vicinity frequently d uring the ye.:_r to buy materials and contact for new s t;-,-les, observe style ,:nd e.scertain style trends, the handbag business -being a r , pidly changing style :9roposi tion. 11 Their claim that one hundred per cent of the materials uned for f abricating ladiesl handbags are purchased in N on York City and the Ne\7 Engle.nci Sts .tes is not absolutely acc,.ll ' ate. A grea t deal of tl1e leathe r they use is pur chased from factories located in rHlnaulcee, iJisconsin and Girard., Ohio. This a}plies :oc:rticularly to calf leather end steer hicies. Th e fact tha t they have to pay freight and exoress cho..rges on ra:r m aterials shipped from eastern -points :.:.nd th2.t their travelinb expenses to t_he Ne. v York mG!rket amount in tot, , l to does not prove that this po:. rcentage repr esents a disadvantage. Ec\stern manufacturers also h ave to pa:r tr.:.nsport:.:.tion ch, rge s on many of tb.eir rav materiDls. \!e have not sufficient data to sho.1 the percentage that this i tern bears to their total cost. 17hatever disc.dv;:..ntuge there may b e in payment of transportation cl w rges to Jo=olin, Missouri, on raw mar teria l s, it is fully off set by the .::-dvG..J. t.::.ge the Co. ll a s in being able to deliver their finished product at lower trans:portation che.r r:e s to concerns located in adja c ent t erritories. The Meeker Co. includes in this amount, the ex:9e:1se of coming to York to contact new styles, observe style chc:. nges and eastern style trends. The New Yor)>:: m211ufactur 2rs g o to Paris for the sane purposes and sty les for the l , : eeker Co. to cop• 11The e e .stern manufact;__1.rers locc•.t e d 1\Jew York City and vicinity, there are man y factories , e n a .bundonc e of labor to drmv from . H ere in Joplin, Mis.souri, there are no other h andbag manufactu r ers, our labor situatio.n very difficult, as there a r e peak seasons of manufacturing at which time, in the absence of tro.ined help , ne a r e compelled to employ learners who :cno'. 7 nothing r;ha tever of our 1 ine of r;ork a _ld v1ho in most c ases have had no factory experience of any :dnd ;;hat ever. 11 The skille d l a .bor is con:f in eo. almost entirely to New City • .vhere only of t :ne industry is non located. All f actories outs ici e o f Nev.,r York h o d n o skilled labor to st:rt with, e..nd. y;er e cor m?elleO.. t o break in neF help o:-:ho never in t h e i:1dustry , in cities much smaller than JoJlin, Ivio. Th e o nly advantage tha t tney h a d over the f actories locateci in Neu York City l'ia s the fact that they could emyloy their norkers a t the minimum w2.ge of $14 a r1hereas the manufactur ers in N e :r York City have a hig h l y organize d Union 'ilith c lassification of -r.rorkers, and minimw-u wage scales, for most branches, of $37.50 for hours of :ork; \thereas f actories outside o f Ne7 York City, inclucling the lAeeke r Co. i7ork 40 hours a week.
PAGE 444
9811 -413-F actories no n locating i n the eastern cities are mostly in localities Dhere there has never been a h andbag :.:'actory , and every is recruited from other industries, not even kindred. These manu f acturers equi ? their factories with ever y machine that has been introduced in the during the past five years, and a s a result, a g r e a t oany of the operations formerl y ?erforned by skilled 1orkers is n0\7 per f ormed by ne\7 , orkers '!Orking on a machine. Th e Meeke r Co., has bee n in business in for over 25 ye0.rs. A t one tiJ:1e, they had one of the l 0rgest 0usinesses in the industry, and employed over 400 peo:9l e . At the :9resent time, they em)loy on the c:we:i:-age of 156 peo ple in ti1 eir ha..'1d.bug dep,'rtmen t, (see e::r...hibi t t aken from the records) -vhich is proof tha t the Meeker Co .. has built U:? a reserve sup9ly of l 8 .bor Tiho they u pon vhenever n ecessa r y , since there are no competing f actories in Joplin or vicinity. I t .is mor e than like l y tha t tfl.ese 1:rorkers are avail able to them at all times. HWe have appealed to the ::.J:L1A ... ldministrators in Wa.shington and to .the Cod e .Authority for the L adies' H a nd.bc:.g Code, located in Ne\7 York, for the privilege of e;up l o:ri:J. g learne: s at less than the minimum 'i7oge the Code c c .r:ries, but have in eve r z r c ase been turned down or our ) leas entire l y i gnore d , although the Code tha t is no in effect pro-rides thC1 t the Administrator m13J', if he sees fit, pro vide for emyioyr.1e!1t o f l ec.rners a t less t :1e l!linimum \7age for a short 11 The l.1eelce r Co. la.ined tha t their aoJeals to t e Cod e Authori t•r for oe rmission to emJlo•r learners a t less than c.. ..:.... ..... Cl the minir:m;n .7a[;e h a s been t \.:rYJ.ed donn. The fact is, t1eir apylictions were accorded the sru1e consideration a t . ere giyen to similar requests for learners by other nem b e r s of the incl:u.st r y ; in s ome c ases t ese ap)licatio:tls CaJne from nei7 factories locA-ted in to':ms '7hcr e no han
PAGE 445
9811 The Cod.e is not o f 1 .::nuro cturers , r i th ulants loc:...tec.. in ::e\-: ";or;..: Ci clone . The present •membership o f the Colle Authority is ten, and the plants ey re.Jresent a .1e as follos: ]agcraft i.ifg . Inc. Golrle, service and i r t eriuls.
PAGE 446
9811 -41:::liThe ieeke r C ompany1s factory payroll for 1@34 ras $ 1 25,80o .OO, rlhich is 30 . 1 % of our vo l.1Jne of s . les for the .fear, \/hich is a increa s e ov e r 1 933 . Our ye r ' s o_1erc;tion for 1934 sho':7ing a net loss. A s a resul t o f these ha:.1ciica os , :e nave ber>n forced to discontinue making c e rtain lines, line tha the eastern manufactu r ers apparentl y are successfully . Our business so f a r t his being less i volume than 1934. Neturally w e a r e empl oying less people at the present time than w e were employing year t.!nd would employ under fair competitive conditions. A s an eAampl e , year at this time we . e r e e m ploying 17 6 peo p l e , \ihile a t p resent r1e are employing 2 . 11 T h e l.1eeker Compa.n;)' 1 s payr oll for 1 934 shows an increase of on l y 19,b ov e r 1 933 , which was the lowest '7age l evel i n the his tory of the industr y . e consider 19 ,; a v e r y l o w increase . If the factory pay r o l l is 20,b of the s..1l e s vo l ume, i ncrease in the factor y payroll is only an inc r e a s e of 5 . 7,b based on the sales 'TOlume. At this rate, a bag of valu e , s elling for vho lesale in 1933 , would have to b e sold for $3.17 in 193 4 , lhich is not an exorbitant incre ase, a n d thi s increase miGht ea ily be absorbe d b y other i terns of cost, :;hich ;Jill per mit the manuf actlrre r to maintai n the o r i ginal $3 price. A handbag is made up o f at l east 2 0 ciifferent and require s a t least 50 l abo r ouerations. The Meeke:.r Company cla ims they enp loyed.. 176 last and employ only 4 2 worke r s no 1 . At the time, they c l a im their volume o f s a les on l y fel l off 33 l/3%, yet they a r e producing this vo lume, nith only of their w o r kers. A c co r ding t o this statement, their per c e n -age of l abor costs is l e s s 1ith 42 :orkers, than it was with 176 worker s . The season 0.1 19 3 4 uas very bad thr oughout the i ndustry , most of the factories re9o rted 33 to l ess business than in tne Spring o f 1 933 . The Meeker Co. evide n t l y Has no exception, a n the loss of 3 3 in o f s a les Tias not due to reasons give n b y them . "Another handicap to nhich c on s ideration should b e .oiven is on account of our lont; dist a nc e f rom material market '7e a r e compelled to carry heavy inven tories that't he eastern mn.nufac urers do no have t o car r y . 1 1 The nece s s ity for c arrying heav. inventories cannot be attributed to NrtA , no r does it justify a low e r 1a e rate t o be pai d to "Re lative to a wage d iffer ential 7hich we feel we a r justly entitl e d to unde r the c ircumstance s as enumera ed, it s1ould be borne in min d that the co s:t of livins in Joplin, issouri
PAGE 447
9811 -416much les s tha n the cost o: living in the eastern and metropolitan centers. If we ;;,'ere conce d ea . the l'Thich our handica.p9ed position in this field of mJ.nufacture :,:>lainly i:n dica . ted V.'e are entitled to, \7e '70uld b e in a position to enploy mor e labor than we are able to e m: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 de p&rtmen t stores and other rete.il outlets throughout the entire United Sta . tes." The cost of living in Joplin, Mo. is no less than it is in Sussex, Neg Clinton, Jass. , or Boy ertown, P a., or othe r in handbag factories are loc ated. In the New area the r;orkers are paid about more ti1e average than the Co. :pays its employees on the Md u:-1.less the Beeker Co. seeks to maintain the_ lowest living in Joplin, i vlo. there is no justification for their claim on the b asis of lowe r living costs in Joplin, Mo. "Another he.ndicap of some is that in selling our product in sope of the bib e cstern cities, particularly New York City, to make such su.les we are compelled to pay the transportation charges to the customer to equalize the transportation cost '.vi 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 are n.t a disadvantag e they try to s ell their product in l'Jerlf Yori{ City nhere one hundred m 2nufactnrers are locc ted, sufficient to care for all the needs a : the trade in Ne' :: York. On the other hcJ.nd, a NeH York mOJ."l'l.Uacturer is a t . a disadvantage if tries to seli his product in Kansas City, !Iissouri in competition ;lith the Meei-cer Co. No re t ? .ile r in Nm Yor k City is \\Tilling to buy goods in Joplin, Mo. and transportaion ch.,.rges, wnen he can buy goods of equ.ll v a .lue and style in his own market, d elive red free of charge . Th e rea l purpose of a New 1ork selling office for a factory far removed from York, is for the purpose of selling to out of town stores who visit the Ne\7 York m arket. 11Another c . n g l e to o u r situation is tha t 'rlb.ile we are the only he.ndbag manufacture r in our town, or for that matter, in this entire section, -in fact, the l argest h andbag manufacturer west of the 1,1ississi9pi J.iver -there are in our garment m:.nufacture:cs, and othe r in othe r towns in our immecii ate vicinity. Also, there are a o f shoe manufacturers not in our ci tv but in our v '
PAGE 448
417vicinity, none o f 'fTilOm. e r e co : 1pe lled to JI=•Y the hi.c;h minimum rate of oa,y which we have, and all other lines of such mc:nufacturer have a learners provision in their Code, Tihereby they can em; loy green hel) for a certain length of time at SO% o f the minimUI!l w ... ge until they learn, at least in a measure, hm1 to :9er;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 manufacturers in the State, they had sufficient representation wi:1en their codes '.7er e formulated to exert an influence so as to enable them to get fa1r consideration . . e have had no one to coop e 1ate w ith us 1n our line of manufacture. Therefore, the Code and 9ut into effect and is being operated today solely f'rom the vie\i:90int of the eastern or 1Te\1 York manufacturers and no consideration given to our concern.n If conceded a .differentia l in wag e r ate, the i.1eeker Co. claims they would be in a lJOsi tion to em:9loy more labor. The situation '.!Ould app.ly alike to manufacturer in the industry vhe r e v e r located, if he were accorded this advantage over all of his com0etitors in the industry. 1111e cannot maintain a in i1ashington to attend all the hearing s and ma..'k:e effort to bet co:16.i tions o r rulings that ''e a r e justly entitled to. Therefor e , our co:.1di tion must be r e l i ved or else ...-re \7ill be com:pelled to yas s out of this line of ma.1ufacture, as much as we JJOuld regret to do so. If :Je are forced fron this field of manufacturing, it \7ill mean the loss of employment for arouncl 200 )eopl e , leaving our town \7ithout a :9ayroll \7hich i s much needed, a nd eny heads of fam ilies without em}loyment and us w i tl1 a lot o f equipment for -:hich Tie will have no use. Our • r o r ress in this f i e ld. '7ill h ave been made in vain.11 The i.Jleelmr Com )c;,.n y ' s Fat tLley a r e a lone in tni s "1ar ticular territory is not due to L..fly unfortunate circUl stance. They evidently intended it to b e a:1 advantage, otherise th \IOuld not have made it their choice. _ ster 25 years, they ,have just coTlle to the realization that they are isola ted. T11e m anufacture of handb8.F's is not a matter of geogrcp.lical location . I t is the efficiency of in a p lant, no matter '.' il e r e located. e find most efficient plants, those doinb the largest vol ume of business, located in cities i n ?ennsyl'rania .:md Connecticut. Tl1ese plcmts are O:Qer ating efficiei1tl:r; their is alive end wide a 1a!ce , employing and creatinE systems and to Jroduce their product at the lowest costs , while oaying Code \7
PAGE 449
-418-A s f a r as we know, NRA has not put a single h andbag 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 o f business. The Code fee s pe. i6. by the !;ieeker Co. during the past year were on the sa.me basis paid by every other memb,E?_r of .the industry. Besides, 25% of the amount tha t '
PAGE 450
Number of Employ .tO NTH ees July, 1 9 34 112 \ugust, 1934 164 5eptember1 1934 1?8 1934 226 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 Earning Earning $14 per $15 to $20 week ner week 81 19 110 34 115 42 139 19 1 48 41 76 25 88 28 9 2 24 76 22 S.AL:SS P..E?ORTS 1 umber Earn inc; Earning $20 to $35 $35. 00 -oer week and u-o 11 1 1 9 1 20 1 28 1 23 1 20 1 21 1 2 1 1 1 9 1 ! ,iarch 26, 1 934 to tarch 25 , 1 93 5, Inclusive. . iarch 26 through March 31, 1934 April ) i:lay June ) ) July ) Augu.st, 1934 September, 1934 Octo oer, 1 934 1934 December, 1934 January, 1935 February, 1935 i,iarch 1 throuc h 25, 193;:3 9811 $5,100 . 00 59,449 , 00 38,6t>2. 00 3'1,599 . 00 632 . 00 70 , 32? . 00 15,753 . 00 6,504. 00 27, 435 . 00 2a,o 2 . 00 $340 ,493.00
PAGE 451
-420-lJlay 2, 1935 Mr. c. Meeker President, The 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 be0 n received during his absence. A l etter addressed to i , ir. Langum on the same subject has just been r eceived from the :donor able Dei Jey Short, Con gressmen. As l..lr. had the interview with him and with I.Ir. Cleveland A. 1Te . ; rton to whicn you have refer:ced, we are simp l y acknowledging receip t of your letter with out an extended repl y . We ex:J?ect l , [r. i.:langum back ' , 7 i thin 0 . day or t\7 0 and we will refer b otJ.l letters to him p romptly upon his return. We are confident that he will wish to give these letters his personal attention and the c areful consideration that the importance of the matter deserves. 9811 Very truly yours, Q11en A . Locke Deputy Administrator Textile Division
PAGE 452
422 When the Code went into effect we asked for exc eptions o the minimum wage, filing our brief in due form and going before one of the Darrow committee in Kansas City, a iAr. lliann, eA.'J)lainin g our position and waiting for a decision we 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 abe l s until Tie.had paid back about$800. 00 that they termed back wages to bring the 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 York and that particular vicinity, where nearly all of the m anufacturers are located, Pith their market for raw mat erial and everything that goes into handbags exceDt labor, righ t at their door. In considering our case, I w ish you nould again refer to our brief, left with you. These New York fellows claim a great success for the Code, yet they have ninety-one cases of non-com pliance out of three hun dred a nd thirty-seven m anufacturers that the y claim are in the industry, and during the past feu w eeks they have alloPed the eastern manufacturers to dump merchandise on the market at it could not be produced for until the E
PAGE 453
Mr. Walter Mangum, Textile Washington, c. Dear Mr. Mangum : .. -421THE 1viE2KER COM::-A1l"Y, INC. Fine Goods Joplin, Deputy Administrator T. R. .A. April 30, 1935 With further reference to yours of April 13th, I am enc;osing herewi th1 as you hPve '.requested, sheet f9r the years 19.33 and 1934; These balance sheets are out 'of our public. C'.CCOUI1ta.nt s ' annual report on our. business. The s e accountant' s . are. . &.Dobson, Joplin Nationa.l :Bank BuiJdingj Jo1Jlin, tAissouti. We can furnJ..sh you 1 _fur.tber--information if such is necessc .ry, o r you 'can'._.if you wish i .communicate direct with these accountants. !. I am also encl osing vrhat I think is the information asked for in the second paragraph of your letter. You will note we show for . . . . 'f and March a big shrinkage in the numb'er of -peo-ple employed when .. consideration is given to the fact that ell' employees for 'the mqnths. . renor ted, al th(J)u g h m::my of the! n working only pe .rt t'ime as the .total pours will sLow and a smaller-amount of g o .ods manufactured, you can readily see ho'v our business hC'ls deteriorated. April 'would sho w as bad or wo::se condition then tvlarch . Mr . ClevelC"nd p. Nerton n.: s just writte n :me relative to the intervic that he, in corn•J..,r : . : n C or:fT 0 ss1nan Dewey Short, with you recently, and hes. tllr' t , t...'lr:' F2u Yorl.c crowd insists we are making m oney hand ave:-fi;:L Th.E::sc Y c :-k fellov's kno v r our position, but as l edv lsed, it if my oninicn, based on e.x:Perfence, that they do . . not ca? .'e 2b0ut our tio n in tnis industty. It is my honest opini. o n thet they feel that the ha.ndb2g manufe.cturing business 'is 8 n eastern business. I L'li )' t be in some of my conclusions regarding these fello1's in the east, but I don't think so. . In a bulletin put out b y the C ode Authority dated march 21st., they list ninety-one cases for non-com1Jliance with the Code. I wonder if you fell a ns. in washinr;tonknow the d etails of these non-compliance case Of course, I do not, but it wouldn't surprise me if mpny of them were in the same .class as that uf the.'Vitginia Art Studio of Lynchburg, Virginie who epparently heve n ever complied with the miniliD.lm wage, and thi concern in L ynch b , .1rg is erfectl y justified in my opinion in not complying It is reported I think thRt the Virginia Art Studios ere doing a big busi They Dav be, but , t this time o f the year they manufacture a particula r ty-pe of bRg that f rrn a u i g nart of their year1s business, and if looks like they a r e doing a big b usiness 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 account of the seasona l bags they are making. 9811
PAGE 454
-423-but I have a business her e to maintain; not R r c n eu loft like mos of these fellows, but a b i . . 1nvestment, as you note from my balance sheets. A building and eClui9ment hic 1 we o r m . On account of this it is rather hard to arrive at a decision to out of any manufac uring line; leaving building s and e quipment idle and throwing peo n l e o t of work, many of whom have virtually bee n raise d U:? in this business, a business I have been more than twenty-five years in d e v e loping a nd devoting my to. if I naven1t eiven you details that you want, just c all on me; I 1ant you to cnow that I the courtesies extended me v.rhen I was Ln your office r ecently yourself, i.ir. Smith and lr. Hill. Any d eci ;;ion you arrive at will b e satisfactory a nd i f you wish I can come t o 7ashington again, althou g h it is a long trip . The same day I called on :ou I c alled on l.ir. Howell Cheney, whom I supplied some figures to which 1e may have passed on to you, and Tiith whom I have had considerable cor with in recent months and who s 5emed to feel when I talked hi:n in his office that our situation out here really deserves some rusting that I have not bo red yo u or indulged in any unnecessary comlents on the situation, I am Yours very truly, Is I c. l.fEEXER Presiden t THE COMPANY, I.r C . .s. On our balance sheet under assets you will note listed sales ten's accounts ov erdrawn. This reflects the earnest effort we have tade to keep our Dus iness g o inc; since the depression set in in advanc ng salesmen money to keep them going , thereby keep 1n g our going nd keeping our peo ple em2loyed; money ne have expected tc recov e r from he s alesmen whe n our business again got back on a better basis.
PAGE 455
-424-May 4, 1935 ' ' The Honorable Short House Office .Building Washington, D. c. li y dear CongressmM Short: Your l etter of A pril 26 ,,vi th enclosure, e ,dciressed to Colonel Walter Deputy Administrator, was received during his absence this week and was ackno uledge d by tele_phon e to your Secretary. Colonel l : iangum, who has been giving this matter his personal attention since yo:u and lvlr. New ton called u p on him the other day, informs me that he has alrea dy be.en in touch with the Code Authority, that the matter is having -prouer attention and will be' foll. owed closely in to insure full consideration at the earliest possible moment. Sincerely, Prentiss t. Coonley Code Administration Director Textile Division 9811
PAGE 456
CO'JGRSSS O F TriE IDHTED STATES House of Represent a ives Uash1ngton , D . c . Co 1. W e.l t er Deputy Administrator, washington, ]. c. l 1iy dear Colonel iian g uin: A:Jril 2o , 1935. I beg to a tragic situation a nd res:9ectfull7 urge your STwpathetic consideration . About t Y Eenty f ive years ago, t e Company established a ladies 1 handbag in hi::; industr: gre11 until it. became one o f the successful end ttractive J lentc; in that grea t agricultura l and area. T l e Co9-e Autnorit; of tne La-:..ies1 ]An' ba,c IndustrJ seet1 unable to unclerstc...nd the t i e s and under ,-.hicil this Com9a.ny i s cou pelled. to e, c:.nd a s a result of th"' our dens im posed , they h ave lost \.-0 _tinuously since t1 e co, e becru e effec tive. Unless relief is g ranted ver:r soon, the; 1.Jill be com_)elle d to shut their : 9 lant, anci , o:.: c o urse, t h e enoloyees ill lose • eir source of livelihood. I am sure it i s not your pur:_)ose, nor i s it the purpose a:.: the }Tational Act to destroy a userul industri a l p lan . Approximatel:;r per c ent o f the l adie s 1 ha d.bags a r e m ufactured in NeH York. The Cocle Authority i s established there, and uhile its members understand their .')r oble s, they hav e h3cl no e::perience in a f actory such as the Eeeker Compan y i s oper&ting. The Ladies' H andbag Cod.e at the ti e of the oublic hearings, contained a labor differe'nti2..l betneen f actories in large cit ies a.'1d those in rura l municipalities. \l'nen tl e CoiJ_)any received a copy of the Code as finally approved, this differenti'1 had been eliminated, and. it is im possible for them to continue 7it out an a.dequa e labor differential. The I • .ieeker Company is 1440 miles a--:1a;; fro ::e\; York and hundreds of miles a' .'T&J f rom anothe r handbug factor y . The supplies used in h andbags outside of leather, are .nr nufacturcd in he vicin1 t y o f York ...Jlants, '.Ehile this Com Jan-" i s co1 )elled to beur a substantial burde n for f r e i g: t :.:t.nd ex_Jress i. 1 s! 1 i_JJin-:; these supplies o the factory, It is a lso com}ellod t? l J su1 1 es of whicl calls for cay i tal ilwestments , not required o tue :o York comJanies because o f their to the s o1..._rce. Th e E e eker is COi:l)ellccl to s e.1<.i. r G ) r sc.1ta i vcs at frequent inter v e . l s to -... 01'1 : , not o.1ly to bu.' su' L.cs, b 1t to 9811
PAGE 457
-426study a n d observe the styles and developments in order to 'k:ee"Q a.. breast fith the industry . This e x o ensc i s not required b : r the New York f actorie s . The handb8-to; industrv has a s e asone . l production. Its 0rin cipal market is d1.1J'ing the Ho:..id ays. It -r1 e c ossari l y emp loys a bout tuice as much "liJOrkers durin g the hal l o:: the Jear a s req_uired for t h e first hal f . The Hew Yo:ck compr n ies have a n abundance of skilled l a"Jor . The Com:9any h a s no sup-oly U3JOn which to ciraw, anci \7hen the. ) lan t nee d s additione.l labor aro1.md the first o f July, it is necessar-; t o use and l..Ulskilled workers, \ Vhile the lTe';.,r York plant s get an abU!lda11ce o f skill8 d labor. Under the Code, t h e i : eeke r Company is compelled to 1 )a-r the full minimum wage to these new a n d u:1trai n o d a burden which the York factories are not require d to bear. There are a nurn1:e r of shirt, overe.l l , and shoe factories in the Joplin terri tory, a11d none o f tne:. 1 are require d to pay mini1urn wages a>1y\7r1ere near as h igh as the lc.d . ies 1 handbag Code requires. As a Tesul t of these hanciicaps' the } Jieeker nc.'...S already been forced out o f a number o f lines o f o roO..uct ion wiLl a. result tha t its nUDber of .!. e m ployees a r e now g r eG.tl:,.r reduced from '-rhat t h e y uer e a t t his time la.st year. An investigatio n of living costs ilas bee n made, based upon the United States D e partiTient of Labor statistics, Hhich show s that workers in Joplin, Missouri, can live with the .same comforts and necessitie s o f life a t less than sixty-five p e r cent of the cost required by the workers in York . The carfa r e alone, required of the New York wo rkers, is enough to justify a substD.ntia l differential ove r the Jop lin workers, who have no such expense. i . !an y other i t erns could be enumerated. The Meeke r Com_:?a n y made an a:r;: 9li c ation to the Code Authority months ago, to be r elieved from the handicaps r , hich a r e destroying the industry. It has r e c eive d n o sym )athetic coo:;>eration, and I respectfully call your attention to Sec. 3 of Art. 4 of the Code of Fair Competi tion for the Ladies 1 Hanci bag Industry , .-.rhich r e ads as follor1s: 11Tl'1e Administrator may, under e:x:cep tional circumstances and u p o n such condition s a s he :pre:scribe, '-perrni t a . me!nber of the Industr• to employ lea.r11ers at r ates below the minimum wage her ein established." Because o f the tragic problen '.:i th which the Meeke r Corn_!)any is confronted, I urge tha t you exercise the :9011er invested in you under the Cod e tha t you m&{ e such modifications and chan&es as will r emove the handicaps '.rhich the is suffering B.J.'ld which wiL save this industry from d estruction. 9811
PAGE 458
The l.1eeker Company has obeyed t: e LE'..W. -t has lived u:p o the provisions of the Code, and the s ur total of res lts nus far, is tnat it is paying $ 1000 .)e r in dues to the : .!l .... , while moving nearer and nearer to ruin. Sinc r ely Yours , D er;ey Short Uernber o r Con g ress ? • s . I h erewith attach some living cost d a t a p r eo.:.red oy tl e S a"' istical De:9artment of the; St. Louis Industria l ;-;ill show the living cost in to b e at l ec-:.st one-third h i her than in Joplin, 1/issouri. 9811
PAGE 459
-428 COST O F LI The Un1ted Sta tes Bureau of Labor Statistics for the year 1933 determined the cost o f livin g for an ave r ::tt;e f e.:ni l-r o.:' four per sons whe r e the heo..d o f the f amily ec;.rned from $900 to $2500 per a t1::mm, 1n som e 9 2 citie s annone, streEt c D r L tre cw.1d so forth. On the basis o f calcul ation, it wa.s found tl:at cost of for the average m:.tn1 s of fm.;.r lJer s ons i n _-er.r -was $ 1 428, per 8.m1um; L1 Chic ae;o, $ 1277 a .:;,nd. in St. Lo uis, $1219. Since \ve have n (:> officL.1l figure s on Jo : _issouri, He set fort:1 ths follmnng tabl e , s i vi t.g t n i s calculatioa, based on the s o;J e items included i!l the calculatiJn for the farnil y in Je'r York , for va.rio-,.rJ.s cities a.nd. which conc h tiOi1S are' similar to those in and the cost of liv i : lf; not be h i _;her 1n Jo.:.)lin tirn in the following cities: ( Tile 1 0 )Ulc.tion in J O ;_Jl in, ssouri, is aJ.;proximately 33,000) City Po::mlation Cost o l Diving ;) of N e w Hannibal, l vio. 22,761 $900 s;;. I Belleville, Ill. 28,42 5 894 ro r ' 4,-. '[ b:::. 010 Decatur, I 1.1. 5715 1 2 805 Gl. 9 , b S pringfield, Ill. 71,864 8?6 61. D anville, Ill. 36,7b3 870 60. Jacksonville , Ill. 17,74? 853 59. ?3 b 9811
PAGE 460
0 . W . Pearson NRA HeadqUarte r s 4 5 :Broad wa y New York City Dear Mr. Pearson: 429 CODE AUTHO ... ITY LADIES 1 nm STRY 347 F IFT H AVJ;NU:: NEi7 YORK la y 1 3 , 1933. W e are enclosing a copy of the latest communicatio n r e c eive d b y t h e Administre.t i o n f rom the Company, Jo:;>lin, Lissour1, a cop y oi which they to us. We are also enclosing a co _ w of tne accompanying letter writ t e n b y i.Ir . Locke, a co p y o f the personal letter Tiritten by .!r . i:itte n thal to his persona l friend Ur. C . r.:eeke r on February 28 , 1934 before o u r cod e w a s a:_pprove d , and a CO) Y of our repl y giving the f acts refu -ing the statements mad e b y the i >1eeker C ompany . We trus t you will approve of the reasons we hav e given in our reply to the sta temen t s made b y the Company. 9 811 Very trul y yours, CODE AUTHO R ITY LADIES 1 HA1'IDBAG INDUSTRY ), . .1i t ten thal Cod e Director
PAGE 461
-43021, 1935 Mr. A . Mittenthal Cod e Director, Code Aut hority Ladies I Handbag Industry 347 Fifth Avenue New York, N . Y. Dear I v lr. Mittenthal: Under separate cov e r w e 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 ckno wledgment of your letter of May 16, in which you advise d us that his.petition was disapprove d b y the Code Authority in a vote b y mail. We are most ap:preciative of the large amount of time and care you have given to the consideratio n of this case. 'v er y truly yours, . ' Owen A. Locke Assistant .Deput: r Administrator Textile Division CC: Mr. 0. W. Pearson, Administration ! 1 i ember • ' . Mr. Owen A. Locke CODE AUTHORITY LADIES 1 HJiNDBAG I NDUsrrRY 347 FIFTH NEW YORK May 16, 1935 Assistant Deputy Administrator Commerce Building Washington, D. c. Dear Mr. Locke: The Cod e Authority , by mail vote, has denied the petition o f the ivieeker Compa n y , Joplin , i.i:i ssouri, for to engage learners at less than the m inimum Code w ages. The request w a s denied for the reasons given in our answers to the i.ieeker Company's petitions. 9811 Ver y truly yours, CODE AUTHORITY LADIES 1 EJDUSTRY /S/ A. l !Ii ttenthal A. I . I i ttenthal Code Director
PAGE 462
Mr. A. If!ittenthal Code Director -431'ay 1 5 , 1935 Code Authority Ladies' Handbag Industry 347 Fifth Avenue New York, New Yor k Dear Mr. .Iittenthal: rt.e: Th e Com pany, Joplin, I issouri We have your l e tter of Fay 13 on the above subject and we are most appreciative o f the trouble you have taken to ans\7er the various points r aise d by i.ir. i:ieeker. We a r e :9a rticularl y g lad to have the com parison of wages pc.id b-J the f actorie s in -en York Ci y and those paid by the M e<3ker Com-pany. We would like to give this information and the other l a test information that you have given us, a s w ell as your p r evious thorough study and consideration. We hav e a s1ce d i."r • . eeker f o r c ertain additional infor mation and will tr;;r to reach e. decisio n as soon as possible ater ' .l e have received his re9l y . 9811 V e r y truly yours, OTien A . Locke Assistant De.t?UtJ Adm nis n .tor Textile Divisi o n
PAGE 463
-432 CODE At,TTHORITY LADIES HANDBAG LIDUST?.Y 3 4:7 ?ifth .Ave. EW YO:rtK :,:ay 13, 1935 Mr. Owen A. Locke Assistant Deputy Administrator Commerce Bldg. Washin gton, 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. VVe notr-;; the additional reasons they give to entitle them to an from the wage rates of the Ladies' Handba g Code. \7e shall try to answer their argu.11ents and give adci.i tionu l f acts in of our answer to the arguments give n in their :9revious letter ..... rtvti th further reference to yours of A pril 13, I am enclosing herewith, as you h ave requested, b alance sheet for the years 1933 and 1934. These balance sheets are talc en out of our .9ubl ic accm.1ntant 1 s annual report on our business. These accountants are .:Baird-Kurtz & Dobson, Joplin f Jation al Bank Building , Joplin, Missouri. We can furnish you further information if such is necessary , or you c a n if you wish co;,lJTiunicate direct with t hese accountants." 9 8 11 We accep t as correct the statistics furnished.by the United States Bureau of Labor. as to t n e cost .of iiv i ng bet\7een Joplin, Missouri and New York City as being as it is in Hannibal, Missouri, a city mentioned s pecifically in. this report. We have prepared a chart which will sho\7 the wages paid per hour in h a ndbag factories located in 1Jew York City . In order not to disclose the n ames of the factories, we have nlli11bered them from 1 to 5. We have also prepared a similar chart showin g the wages paid to workers per, hour i n the factory of the i':le e-:er Company. These figure s are taken rom the payroll records submitted by the respective manufacturers and examined as to their accuracy by our invest i gators. In these figures, we have taken the same mont h of t4e year for all factories, November 1934. The New York factories, fror a whose payrolls these figures were taken, manufacture handbags con parable in style, quality and price with those manufactured by the Meeke r Company. It is interesting to note that while the cost of living in Joplin, Missouri is 63.03% of \Vh a t it is in N eu York, the ' .-,ages paid by the Meek e r me about 30 % of the wages paid to the workers in New Yor k . It is evid.en t tna t the i:leeker Compcny has already anticipated the difference in living costs betwee n Joplin, IAissouri a nd !ew Yor k City .
PAGE 464
The union scale of minimum wages for first clasr cuttL.rs, o 1en.tors, pocketoook -mt.lkers, frame r s , •rhicl co;n )rist: tl E' roa. jor classifications o:f operations on is$ 7 .51 for 3?:, hours of 1.vork _.;>er o r a t t.o.1e r<1te o f .pl. 0 0 .._:>er nour in Yor!c. Ther e E..Ue m::.t..'1y \7or'-ers wuo rectJive more becerformed . o n <1_ p i e c e uork basis, and . that ti.1e p i e c e -:;vork r ate is based on the tl inimUB of 35 per This fact is borne out b : r the yayroll recorG. of the eeker Compa...>J.y, whici.1 sho;..r tl at 148 out of 213 ':'rorkers e ned the mini-mum code wage of 35i; an hour. p iece '.-:ork rDte under Union a.gr e ment in Ne w York f actories i s $1.11 an hour. The balance sheet o f the i : Ieeker Comp eny does not .r_;ive all the infor mation necessa r y for ru1 analysi s o f o perations of their business. We c annot C.etermine the i terns included L1 labor costs direct and indirect, neithe r d.o vre have a se_9aration of the v arious brE.J'lches of their business, parts of are include d under code. Without their figures, we cannot express an opinion as o the reason for their having incurred a loss in their uusiness for the year 1934 . The loss ma y have resulted from the of some otl er branc ... of tllei1 busii.1ess. Ue might say, however, in general, that losses throughout the handbag industry rer e not unusual for the year 1934. III am also enclosing v7hat I think is the information asked for in the second paragra-:_Jh o"Z your letter. You will note we sh0\7 for February and l1arch a big shrinlcage in the nunber o f peo _9le employed :--nd \1 en consideration is given to the fact t hat all employees for the months reported, a.l though mc..ny of them w orking onl : r part t ime as ti.1e total hours "17ill snov1
PAGE 465
-434-tTMr. Cleveland A. Newton has just written me relative to the interview that he, in comp. :my with Congressman D ewey Short, had with you recently, and has advised that the 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 these fellows in the east, but I doni t so. II This is only an unsupported of opinion. trin a bulletin put out by the Code Authority dated l!Iarch 21, they list 91 cases pending for non-com pliance 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, Vir ginia, who apparently have never complied 1,1i th the minimum wage, and this concern in Lynchbur g 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 year1s business, and if it looks 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 seasona l bags they are making." The 91 cases of non-com pliance 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 e xemption 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 b y 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 d ecision He had in effect a minimum o 30 per hour for for some of our Yet the Code Authority, when they got ready to issue labels, would not ship us l a b els 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; 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, where 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
PAGE 466
-435-The report by tl e :Jc:.rrow Board, e believe, ,ras m.de up of just such heerings referred by the 1v'ieeker Compan ; , and is proba':>ly the reason why-the. rep o r t of t "' Darrm7 3 o a d. clid not meet he approval of the AQministration. The for the pay:,1en t of restitution oi iieeker CoiJpany '.vas oec2use they violated the . by paying l es;s than the minir.1um code .7agcs . $800. by the labor p ovisions restitution it. . ;e_s'paid to every to receive 11In considering our case, I i7ish , .. ould again refer to our brief left with you. These 1 en cla . iJa : success 1 or the Coc turers, cigar manufacturers and ot.hers, none of hav e the high rnnJ.mum r.rage that \.'e have, . and all of them have a period in :thich they can abs o lutel y g reen for a c ertain length o f time until they get fe. m i l iar ',7i th their at less tha n the mill.imum; o f the mini mum in most cas e s , I think. One t;a r.lent 11e:.nufpcture r rho employs about one hun d red peo p l e in our to"'m are able t o '.ror. c tne ir ne•;-peo ple whom they a r e to teach the a t 50 o o f tneir minimum for seve r a l \?eelcs . S h o e 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 manufac turers her e , and there are t':'IO of the:n, I l.Aild c rstend from very reliable authori t y , pai d littl e or no attention to t e C ocie minimUln . uso all in all I : .q1o-: tha t no consideration has been .:-i ven to our isolated posit:i.,on i n this industry . n believe this is a criticism of the and not the Cod e .d.U thori ty of the L &dies 1 Handbag Ind s try. 11 d.dJ lr 10'. at shoe manufactu.rer s are a n excellent source fron "'lhich erienceC: .. orkers m a y .be procured to do 'Yorlc on h3.ndbags. Sho e cutters, s titchers and parers are generally considered more skillful 'l' Ork:ers p e r forming the s ame in a handbag fac tory , and thes e com::_::>r ise three of tlJ.e Jn jor operations in t11e making o f a h<.:.ndbag . . e a r e inforr.1ed. t.1Gl e a r e soMe shoe ac-9811
PAGE 467
-436-tories in Joplin, Missouri and in C arthag'e, Missouri, ' : r insisted. that they should not b e included. the fina l code was o.:pproved, no classifica tion ond no scales above the minimum were included. Provisions were made in Sections 2 and 6 of Article IV, but they were stayed by an Administrativ e Orde r approving the Code, and still r emain stayed. W e are at a loss to understand why the I.eeker Company should use a p ersonal letter sent to Hr. c. l;leeker to support their cla im for an to the code 14 months later. 110n our b a l ance sheet unde r assets you will note liste d s alesmen's ac counts overdra :iln. This r eflects t h e e arnest effort w e have made to keep o u r business goine since t h e depression set in, in advancing salesmen money to kee p thea going , thereby keeping our f actory going and keep ing our peo p l e employed; moneJr w e have to recover from the s alesme n 'Then our business again got b ack on better basis.u 9811
PAGE 468
-437-The iteD 11salesme n1 s accounts•• .. 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 finQ ot. er 9roperly cha ge such items to and loss at tl e end o the yec.r. S:he i,feel e r Co!npan y to co.rry it .:1s 3.n 1.s e from yea r to Y . ec. r . I t is our ex:p, ; r i ence tl a t t is i tc. n 1 s seldom ever realized.. UnQer p resent ri wice as 1-;1any .. factorie s strivL1g for one...:.hn l f of tl e nor ... a l volume of ousiness, it is the rule rather t1an the exception to find that four out o.f five travelin g s a J.es : n e n selling "!< ndbe;s do not e.:;.rn their a.G.vanced draHing 7'e fr. il to see whe r e this situation c<:.n at:tJ:"ibuted to c.ny feult of the Ni\A, the Cod e Au thority., or the otL e r oeu1bers o f try. -; 8 t.ruBt \'.ill i'!1S' ': . l'-.llj cl.lr1.. <' • . , l ' CumpcJn.f in SU:9:J:Ort of their _ eq .e:::> r, .t o1 e ..... 1or... \ 7 o r 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 C 0u.e :Ui c,c tor . . J. :AS ... ... . . 9811
PAGE 469
Fii.i.M NO. 1. 2 . 3 . !:5. -438-COlviPAB.ISQTT OF WAGES PAID FACTORIES LOCATED EJ 1mr YORK CITY, fuiD cm!P_t.JJY O F JOPLin, :B'O R TSE 1. O! !TH OF NOVEiJ[9:GR 19 34 P"''..YROLL 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 Ji10R 54 55 52 5 1 58 63 6::<; 6'7 ..... 64" 64 29 _ _: 28 30 28 27 66 65 68 67 59 so 50 5 1 5 0 O F HOURS FOR WEEK 2,005 2,035 1,968 1' 9 2,04 7 2 , 3 1 2 2,697 2 ,503 2,516 2 ,528 l,Ob 7 1,080 1,139 1,111 1,070 2, 36:2 2 , 41 1 2 , 59 7 2,438 1,836 2,42 1 1,886 2,358 1,9o4 A7ERAGE E).J:ti'JED PK-1 \iOR.JC..-=t :BAS E D 40HOUR \lEEK $35.50 37.70 37.50 37.50 35.20 28. 8 0 28. 6 0 29.00 29.25 29.00 30.80 31.20 31.4 0 :_n. 30 31.70 31.20 32.30 31.30 32.60 35.10 37.90 37.90 37.50 09. 8 0 MEEKER COl,;? ANY A. ER<\.GE RATE PR:ii HOUR PE....'t WO:rtKSR 944 4 . 93% 88 761; 78-i 94-'l 941 99 3 l 209 7,868 16.5 0 4 li 2 2 0 8 7,494 1 6.10 404 3 1 88 6,927 16.30 4 0% 4 152 5, 246 16. '70 4 1% *P1eo..se note thz. t there \-.re r e five we e k s e::: No. 5 and vlGeKe r Co. \ 7hich only hc;..d f our beca .use different f.aq_t0ri.es nay on days of the 9811
PAGE 470
03' P 0 2 AN"J :;:,-7::.:':3 OF .J.OJ-:'IO:J :'OR FIRS1' Q,U K : TM. :? l 3: .:\S :IT:'i ':'"ii:: Q,r'"'".r::_ JANTJA.RY ::: =s:trc_-8 Y 9811 Eo-.,..::,v .i.lu:::. PRO DU C .I' I 0 Decrea s e D ecrease 24-'-i ., , J I n .reese 5,...,_ / ( J . ' Decrease l!,Ol\ O F TI.l_i!; TC::_-0: ( J.tufL'.AB.I, t'Zel"dUAri.Y & .t\RC:i) rorkeQ. :J! :; .. : s-: 24: ; ) in v a 1 ue 'Jroduction.
PAGE 471
981 1 -440E X I B I T X -------Code Autlwri ty Comp1iE'..nce Director's o n HL'.verhil1, liG'.ss.
PAGE 472
ir. 0 . J. Pearson . R . A . Bo c.rdw<:'.y-.6ev;r Y o r k , •Je-<:J Y c r k D e ...... r l.ir. PeP .rson:A_l X "'C :J:: A-_;r-: ::,:::-:1 .1. ... L'. _J:...-JJ:__:.} r.:ry.;.sr:KI 3\)3 ., .L:rcr-"'3 .: 1 A:)ril l6t. , 1934. I em enclosi .g t } CO"SJY of t1.1e lette r -::.::.ver:_ill, . :o.s::c..cLusetts, rel<:'.tir:' t o work; <'-SO :r. r e :)o rt." Yo, w ill see from t12csc t!1.::-.t ::r. "'"'erkoilitz •-<'.S m:.c.:.e D. close investit,;[.tion of "t:le Dc:-.tte r [. _d I bel_ieve :1.'.S i zen t-1e nec ess:-. r y s te1)s tc re. e_i > situ." t i on . very (Simed) " ...... Code Director "dies' ::nd tstr' A. :i ttenthal/TD 9811
PAGE 473
C ocle Au t:w ri ty Gentlemen:--442CODE .AUT!:GRITY LADIES' . . ANDBAG DJDUSTRY 303 FIFT::: AVENUZ UE.i YC;.UK April 16th, 1934. I :1r.ve mC'. cle r.n investigo..ticn wi t:1 reference t o the mC'.Jlufr .cturing of woven ler..tl1er in the ;.rr-werhill, Uass. district. 11':1i s Industry consi s t s of 12 mnnufr.cturers w:1o em)loy E'.bout 2,000 e. o f t h i s work is done in t :1e homes of women o.ncl children. io . f i s done in fr..ctories. Tl1 e work clone in t:J..e fo.ctories consists o f t:1e c uttint; C'.nd only m0.le 1 .:'.-b o r is used in t l is operation. Ti.1e first ;nnnufc..c turer stnrted in .::'.bout 4 yer..rs c.;;o. remainder r.r e r.ll new firms t:.ncl t h e y c..re <'-11 loc<:'-tecl i n the cities of I pswich, Lynn and Yr. Their is sold t c j obbers and in n. few inst r.nces , these jobbers control <:'-1<:'-rge percent2.ge of their out : c Jut. These jobbers c..r e continur,J l y tryinb t o breE'.k down tl1e price of the bC'1.g so thc:.t the ln.bor costs do not net t h e v.rorkers E'.. living Wf'1.ge. I hc:.ve investign.ted 2 . number of f.-:,_ct ories 211cl c:1ecked t l1eir lJl:w roll s . Ti.1e vvorkers in t:1e fr.c t'Jri cs receive t l1e minirrrum wnge . 'The l1ome workers wor k on 0. ece work b o.s i s; po..y is very low n.nc1 it is impossible t o determ ine the nu...-nber of hours they work. T b .. is work is clone b y '-11 tl1e ; -ne.mbers of IC'jnily. I inte:.cvi I.ir. Georce :r. Croston, Secret nry of 1J. :1. A. Cor;!._Jl i "nee Board, =:n.verllill, I&-.ss. , Md hac.l r . conference with him with reference t o t:1i s mc>.tter. 1 ; : e t o l d me it wc..s i m c ) s sible f o r h i m to co-oe with • .J. t:1e si tuE'.tion . T.:1e locP..l t':ut:1ori ties o..re on <'.ccount of pressure b r o ut;:,1 t b y . the cliff eren t c:-.nd c :1ari t r.bl e insti tutian s, it woulcl .. e l ) r.. g rec..t d.er . l tow.::-.rd welfare work. I : : w.1 c:-. v-vi t:1 Lir. George PicE'.rd, Sul:>ervisor of Attendance r.t ttier Sc::wol, li!r.ss . I him wi t:1 reference t o t l1e r .ttendcmce of t:1e s e cl1ildren in how t hey grow u p .A.111ericc..n c hildren n nO. tl1e c:1ild.ren fro::n different o f the city . told me t:te cl 1ilclren <:'.re r a tl1er bri&1 t E>.nu well nourished. :t:owever, he i s i n fc..vo r o f t ::..is work r . t :1ome. opinion is t:lC'.t it l1as creE'.ted a concli ti'Jn beyond control of t :1e locC'1J.. 0.utl1ori ties . I r..lso i n t erviewed l 1 ir. Edwr . rcl J. I:Ieehr.n, of the Le.bor De,Jt. of 520 Bc:.y St:' . t e B 1 ilchnG, LP..wrence, l.i2.ss. is entirely in enforcing C':ny requlr.tion s H i t l 1 reference t o l1omework. T!.1e Str. t e of I:iP..SSE'..c:1u setts does not )ermi t MY inspector t o e;o in enycne' s l1ome without c:. WG.rro.nt. :: e C<'.11 only reg,ult'.te l2.bor lt'..v;s 2.s f2.r r.s f'..ctories <:'.re concerned. 981 1
PAGE 474
In view of tL'le condi ticns, I u 1ss onnolly of t:.e s>t. J 'l!!es Sch o oJ., :-.U".j :ri ty of t1"'-e cl ilcren c>.ttend . She he.s c.ssured me c l i l _en .:'ro vwll 1 cucis:led c>.nd t C'ken c['.re of .:'.lld not Of course t :1i s c: urc: .. is SU)lJorterl mos tly by t :1e workers L t : . e v icinity v1>.o \'Wrl: on t:.ese bag s 1 e.ncl.. t : W .'l,S bi "'. ed. . Lc-rced if "'nything coulcl be d . ne to :1c>.v e ese onc:;s mc.de f.:'.c torie , con _i tions would be more I visitec. 2llorr.es \7:1ere t:ese '.:'6S .:'re mc.de. .:. one of ::.; .ve l e' s t.1c c:.il :re;: 2....'1rl_ t.e 11C..j nri ty betvveen eig.1t C'.ru:l nine. i .ios t of t : e c:.lld.ren c1.o tllis v1-:r-c.fter 8C:lo:Jl Sone of t :1e l10me8 in;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 rt, but mor e for little l u.xurie s f o r t:.!.e olcler of t!:e fomily • . T :1e m.:ljority OJ. t :u3s e C?.re o f t : e C-re k ort.'.cJox Ic'ith, c.nd L2eir morP.l 8 <'.re very i n view of t:1e I"'_ct t"1e p"'re:. ts su2_1ervise t :1eir c:1ilrlren very Cl'.refu.lly. T:1ey "'.re .. 'l."'.rried between t: e E'..g;e8 ..:f sixteen <'.nd yec:.r s . The entire cc.lony is r. re"Qlic.., of <'. 81TIE'.ll comr.mni t y from Greece in to tl:e l ni ted S t ..... t e s . After interviewing eP . c:1 c . ncl e v e r y OD1er of t!. ese fo.cto ries, I celled <'. vi.1ich wc.s hel d E't e1e St. uc: olcs An As> oci<'.Uon W<'..s formed under nene of B<'.g .:c..nuf .cturers. They c.creed t o 8y 8 t e:x.tize their business ::md :!.EWe t '1e s['J"'le women do t ::e work in t l1e fl'.ctories. I l1cwe formula ted :;,:>1['..11 8 w!1ereby t :1ey could incre.se r ) roduc tion E'.nd n o t de_:;rive o.nyone of .?.. livelil'lo.:.>d; in f.-...ct incre"'.se ..,_ grc".. t de"l of the er.rning s of t"1le p eo]le without ...... ddi tionl'. l burdens t o themselves. l1o.ve ['.r;reed_ to COCllerr.te t c the 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 t hC'.t s ome t:;oocl constructi e worl: h"' .. been r.nd l omevmr k will be entirely el i min". ted by t:1ese . c.nuf:-.c turers. I e xJect to m cl: e , .,_not:1er visit t o see if tl e cl1<'..nges v1e c ')ro 1ised .1.. :1D.cl been put i n to effect. ( SiQ1eC1 ) "kx Bc r t z TD 9811
PAGE 475
444l 1larch 4 t:'::l , 19 35 • I1c>.v erhill , Uc..s s. T o tl:e r . R . A. L :tbor D e l;t. De<'.r Sir:, I t o s t art letter but firs t o f I1 3 e s w e et;:,r!Up v10r k e r but n one t ro..c;ic c.:.s t i 1 i s . S o p l e2.s e listen and _lel p t.he c:1i lclren o f Fo r you c.:.re the onl y cmes thG>.t c o . n d . o it. I s c . y i s [', tr'.c i c letter. Yes tr:J.[_;i c . I do not k now your ideE'. of t r.J.gic i s but I d o think tl'l a t tlle most trl'..gic t h ing t o d o is f o r fc.t:i.1er s t o t;o out e..nd enjoy t :1e m s elves, n o t wor k mind you, Yvhile ci1ildren work <'.nd swe < . t till 2.f t e r m id.ni t; ht. That1 s whe.t the ft:'..t l1ers o f : 1'. v e r htll clo, t h e best o f They force J. it t l e f rom t.ue c.t;e of 9 t o 1 2 t o VJO r k f rom 6 0 I C lO C k in morni n G til l after midn it;ht. A nd. on Thos e h a ndw e aved t:1.:--.t is t L e speci alty , of 1 1 r . v e r:1ill . T h e y c.re v1e2.Ved c>.ll the wc:.y t:'lr o uC.l. T:1e y m.o:>J.<:e i n t h e sl.wps i n bu t instead i n t:1e h ouses . Al l c: 1 i l d ren w o r > : tryint; t o m2k e tl1ose baGS till l o r 2 rliter m id.n i g i 1 t . Then t:1e next dr. y tl:ie y do to schoo l ['..11 in, unC'.bl e t c d::; lessons. T.::.e t e2.chers com} ) l a i n all t h e time. L::.tely w e bot won't tJ.1r.t N . R . A . w ill nc:t allow t:1em t o be m2.de i n :10uses but i n t h e shops t:1e p o o r k ids wer e overwhelm e d with joy. But f wer e '. 1 1 o..ngry. And the c hildren are afra i d t o s:::.y c.:.n .And now t : 1 e y don I t know who. t t o do. They m ::.de c:1ildren while they tl1 e f c . thers w e n t to the coffee h o u ses and b e e r joint s c .nd enjoyed t hemselv e s , on their c h ildr en's sweat money . if-1ile W iV e S C'Jld S lc,Ved themselves. \7he n e1ey should g e t s leep inst e2.irl 2 .nd I'm sick t:'..nd tired o f wc:.tcJ."lin;:; little kids losing fun. l!Icl-ce t:: e g o t o work, tllE.'.t1 t :1eir duty , not their little kids . T l1e mc..nufn c t u r e r s of Pho i n i x 1Jovel t y C o., United BaE; Co. and Essex e.r e c.l l their l )Ower t o h2.ve m n d e i n the horne s b e cc:-.use they 2.re in the mone y and o..r e 2.fra i d t o lose c.:. c l v:.n o e like t h a t if w e g o t paid p r O l )erly I w ould.n' t m ind, but t o d o ', whol e bag t h rough we get B ja n d it t clce s c.:.h10st 2 h r s . f o r it. S o s t o p t h e m _ple2.se. Don't t h e m o. chc . n c e t o 1)U l l it t h rougl 1 . Give t l1e kids c. b rec:.k, if yo u : wr:.nt t l 1em t o grow and b e re<'.l .Am e r i c n n citizen s < .nd n o t turn their fo, c e s E'..b:.inst .Americ',. Like t l 1 e y c .. lmost m<::.d e me. S o p l ec..se use all your f o r c e t o s t o l ) hand b r . 0 s f rom beins mc.d e in tl1e house s but i nste a d i n t l1e sl1o:r s w :ha r c tliey beJ.ong. 9811 V e r y truly yours, A. Sweo.tworker
PAGE 476
-445P. S. Nobocly )ic,:ed U ) cour::-.be J.o .-t: :-y1 ::.. e l ".fr.:>i': of t'1eir f-:-.L.ers nnd :1usb2.nds . I t c c.l t:.is it" to yvu. I dont t cl.2.re sign my n['f,e or '"'..cldess" Oo..;Cf': se if ':.0/ fi d. out tl'ey will cert2.inly k i J.l me. But i t1 true every /crd. of it. Enclosed you will find soE1G t o ):. ove i t . A:1d :ere c re soL c :-.ddresses t : 1ey mG'ke .. e l:.:id.S . 1: y U d, n1 t believe lloj .. , .. ... • it send sec:cet < . c;er..t '' .no. ;ind cut ves. w:1cn you do , I know you w ill it. Prim rose st. "l -r, 'II:_ ) :, -.'L 1 9 "/IJ-Q ')109 -"16LI. •.) 7fl3 -#1"{/:165 son St. :/{165 'ffi.l55 .'Ll67 Also i,e\7i s St. 1'1 le St. -1f o.J (... :.nes t :ml f of i!':'.y b e <'.r e mixed U.} <. bit bJ.t :m ==:--.rris::m St. G'.L"lost ['.11 the :'l uses. Ple.: . .;e J.somet:1in[; . Let t 1e:.n be done in c:o:1op s • .. ri' .. 9811 E'..l-
PAGE 477
9811 -446L ID .iEST A:.JD :9AG & S i .:.AL L 1:2AT. .7Ac1.ES I :lr. PeP rson C . Jde Au ri ty Industry 347 :b,ifth Avenue Nevt York, l • Y. D e<'. r Lir. Pec. rson: October 23. 1934. Attc.c l1ed you will f inU. F'. cor.)Y of telec;rnn sent t o t l1e Code Autl w r i t y , New Yort: City, wi refer e n c e t o ,-:_ m0etin.:_; : eld. in c:licc.t:;o in llbnor or l:ir. Berko\''i t. z . Yours ver y truly, s r D . m sT AND .JAll8S ASS' N . B;r 7 : . 1 . F03.ST ::. 1 . Fo r st, Sec' y .
PAGE 478
CODE A U THORITY LADIES HANDBAG INDUS TT.t Y 3,17 FIFTH AV:SNUE NEW YORK, N . Y. -'-'STERr 1 IO ( Octo b e r 23, 1 3: . AT A MEETING OF TI-JE M IDWEST HA BAG M.ANUFACTURERS P.ELD AT THE BISMARCK HOTEL M O JDAY EV ENI N G O CTOBER 1.,7E SECOND IN HONOR O F !ViR. M . BERKOWITZ CODEDIRFCTOR TES FOLLOW ! G RESOLUTIO WAS ADOPTED -A VOTE O F THAJ.;KS BE GIVF.ENTIRE CODE AUTHORITY ESPECIALLY MR. BERKO ITZ FOR THEI R INTELLIGENT Al\JD EXPERT I / T ERPRF.TATIOr OF TJE PURPOSE OF THEN. R . A. ALSO A VOTE OF BE 11IVE1 AR. i'. H . BLUMENFELD M IDWEST REPRESE TTATIV I OF T .:E CODE A T iO!UTY FOR HIS IMPARTIAL ASSISTA K C E TO i .. IDWEST . l ANUFACTURERS IN EXPLAINING THE CODE F1JNCTIOi.JS. ?:HDWEST HAND:9AG & LEATHER . ARES ASS 1 • :! . L . FORST, Secrc t a r y Ch a rge to: Mid'J!Tes t HP.ndbag & Small Lea. Wares A s ' n . 9811
PAGE 479
EXHIBIT Y Report of A. F i she_r o n the 3udget 9811
PAGE 480
.LEI.! 0 To: -449-EXHIJIT Y (t Colonel Walter 8angu;R AdJ'lini strator A. A . Fisher Assista.:'1t De,uty Staff of re=tile Division A&Jinistrator in Liaison Tiith Labe l Cod e Authorities Subject: Lad i e s 1 He.ndbag Code Authori t.r T o t the Case stor:: o:: .:tbo e Co
PAGE 481
-450023 , 000.00 in esti:1ated expenc:itures the nenly ]uC..get f'Oi' 2 . recJ..uction in t h e bases of assessE1ent to 1/4 of 1% of sc-J.es o f nanufacturing jobbers. Based upon an esti:":c:tt'-'0. InC.ust:::y vol ct.r.J e of $45,000,000.00 , the assess:"Jent u a s estiQated to provid e a t otal inco 1e for the year of $112,500.00. The of collectint: to b e as follons: sale of lab
PAGE 482
451 -For the n e buQ.eetary -=-roM 26 , 1935 to 25, 1 9 36 the Code Autl ori ty estinate' a :nobable sale of 65,000,000 labels, into 45 , 000 , 000 labels to be sold to the 325 present nembe r s oi the Ladies 1 andbag Ir.C:.ustry pa ing assessr:1ents, and 20 ,000, 000 to be sold to t1o ne11 (3rOU}JS, (to nit, Ioitation Leather & rovelties Inclust :ry, a:1d Eags , Bathing Eags, etc., Industry) soon to be incluC:.ed under the administration of this Code Authoritv . ., The Ladies1 Handbag Industry meDbers subject to the provisions o f the Code 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 e r .1ploym ent of 15,000 worl;:ers on an estimated annual payroll (for 1934-1935) of $9, 000 , 000 . 00 T'otal Industr;y s ales for 1934-1935 nere estimated at $35,000,000. 00 a gainat Tihich assessnents had been collected to January 31, 1935 on n e t sales of $26 ,093,664. The mandatory use of labels effective July 2, 1 934 at $2 .50 per but the first of labels occurred J1..me 18, 1934. Fron that date to I.Iay 3 , 1 935 Bhen the record s of the Coae Authority inspected the follorring is a monthly tabulation of regular labels sold to r.;anufacturers and the agcregate of sticker labels sold for r:1erchandise on hand July 2 , 1. Unit Sales of Labels 1934 Reg"Ular Labels 1935 RegUla r 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 Septenber 3,487, 000 April 4,571 , 000 October 4,044,500 r;a y (to 0rd) 491 , 500 NoveLJber 4 , 3 1 0 , 000 Total June 18,1934 to J . .Iay 3 , 1 935 36 , 607 , 000 Total Sticker Label Sales 825,000 Grand Total Label Unit S a les 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 1 0 ,000,000 at 2 7 11 11 2 I 10 E . 0 . l.i • Sticker Labels first 500,000 at 19r 11 11 nex t 200 , 000 at 19-.; 11 11 last 200,000 at 25 11 II 98 11 . '
PAGE 483
-4521i{nen the Coc:te Authority activities rrere suspencled i:ay 27, 1 9 35 a rel Jort of aucLi t for the first budgetary ended i;arch 26, 19 35 '.7a. s in coui-se of :;:celJar atiOj_1 by Hones f,; Do.vis, Certified Public Accoillltants of o21 Fifth Avenue, Yer York . The latest interira audit these 2.ccountants 'las for the perioc. f:co : 1 26, 1 S34 to February 28, 1 935 (see files of Code Authorities Accounts S ect ion) fron ',rhicn the folloTiing is s11I'1mari zed: Ladi e s I Handbag ' Code Authority' hiarc h 26' 19 '34 to rebruary 28' 1935: Incoce: Assessr.1ents of 1/3 of i% on 1 'anufacturers1 Re;Jorted Sale s of $28,166,893.00 A dvances against Past Due As cessnents AO..vances against I'ebruary As sessnents Sales 'Jf 235,225 Retail L a b els Less cos t of 3.etail Label ' s sold Total Incor,1e s: Cost of 28,354,700 Labels iss u e d to r:anufacturers Salarie.s: Adn;i.nistration, Con and General Rent & Othe r Operating EX]_Jenses Office & Organization Expense ; Tota l Expenses ' . Surplus of Income over $588.10 46.41 $:1,228. 56 34,078.27 12,356:20 7,911.41 ?inancial Operations $93 , 8 39.66 " 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 "over expend:i ture s amounting . to $40, 224. 85 Tihich Tias reflected 'as follo,_.-rs: 98 11 Cash Balances Due fron Handbag Lanufacturers Travelling Fund (Redeposited 3/4/35) Insurance PreniurJ s Unexpired Inventory of Labels on Hand Total Assets $42,690. 71 614.43 345 . 27 220.00 244. 03 $44,114.44
PAGE 484
-453-Less Due t o Hancloa g 1 87 . 57 AccOU..1'1ts C:. Accrued _ _ enses 702 .... ! • ' ) Total Liabilities Sur:_Jlu.s 2/28/35 •.riti.1 C oc . e Authority as Trustees $3,889.59 $40,224.85 E xcep t G.urin:; the earl y o: Code Aub1o:..i tJ operations ,...hen a loan finenced initial cormittnents, the sale of labels proviO..ed ample fur..d.s for required tures. Al t hou{;h the <:vctual income na.s f:-..or. 1 on a;.1d r1anufacturing j ob'Jers sales at the rate of 1/3 of l;'; for the first buc.getar y y e a r and 1/4 of from i.arch 25,1935, tl1e label tras a ] O"erfu l inst.ru."'1ent in ex:)editin{: a ssessment collection. I nC:.us t:i."JT er.1bers o:..cle:ced anc3. paic-_ for three nee1:s 1 of lel:b els nhich <.:er e furnished onl;y nhen the ap: 1licant rej _)Orted act,.le,l sales for the jJreced.in,: i10nth . The assessnent thereon 11as cha:rg eci to the an11l ica.n t a:,1d the reni t ta.nce accom panying the order for labels uas credited the assessment so charged. I n vie. ; of accumulated, and accuou..latint; surplus, the Cod.e Authority on i .,arch 7, 1935 _voted. the d.istribution fron the sur:;_Jlus of $30,000.00 to of the I nC:.ustr'J in :)ro:-,ort ion to the anount contributed durins the budgetary ending i.iarch 25, 1935. Follo':7ing the vote, the surplus of $30,000.00 uc,s thereupon set;regated in a special ban,{ account and distribut!i.on hac_ been macle thereuo!'l to the extent of about $23, 000.00 at i.: Iay 3 , 1935. The balance .of $8,742.79 nas held a raitine f inal submission of sal e s volune figures from certain members of the The actual cash balances in t} e Code Authority banl:: accounts a t the close of business, 3 , 1935, ••a s as follo•-rs: Ster l i n g Nationa.l Bruli-:: 2: Trust Conpany Lanufacturers 1 Trust Conpany 11 11 11 (Special Acct) $9 ,454.83 10,416.24 8,742. 79 This Code Authority no account ior restitution of the employees 1 nages as the adopted ' as to obtail fro . 1 the i ve employers to order of t11e ermloyees 1hich lie:..e turned over to and C.istributocl b the Code Authority to the against a receip t r e tained in the Code Autho it' file s . Durinc; the period of its operations to i:arch 21 , 1935 CoG.e Authori 1 s Conpliai1Ce Division r1ade 3,158 investigations. B.estitution of rages to the 8l10Ullt of $ 1 4 , 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 C l 6 ,ooo.oo. 9811
PAGE 485
-454-General Genero..l conp l iru1..ce th Code ::_Jrovisi.ons ras obtained in a ver-; r sat i sf cl.ec;:cee throubh the t y t:mc_ hic;hly constructive of the trro C ocle Directors in cha r g e res :Jec ti of the Adnini ion and. Divisions . The Director nade frequent lJersonal surve;jrs of Industry establishm ents anc. throughout the In d..ust:L''Y. <1J."1G_ s t atistics : oertaining to Ind.us t:L"J7 c .ollar sales, Labels issued. , Hand..bags Put in llorl:, Average Uu. L1ber of ::imlJloyees, of Hours norl: ecl and '!Jages Paid, during the enC.ec"'t. ]'ebrual";y 28, 1 935 r.1ay b e f01md in the audit re )O:rts ffiic1 Davis il1 the Code Accounts Section files. A ic,l su;-:r the fron June 10, 1934 to Februar y 28, 1935 follol's: lTe t S a les :J.e-oorted( *) Labels Iss ued. Handbar:;s Put Anount Ho. .... ; in Horl:: iO lTer: Yo City $ 1 2 ,091,8 1 4 4 2 . 93 9,556,000 33.70 7,475,610 :;:;ngland. 5 , 642,972 20 .03 6,391,125 22.54 5,073,142 Atlantic 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 stern 254,645 .92 J.6L1, 000 .58 99,631 $2 8,166,898 1 00 . 0()5; 28 ,354,700 (*) The nunber of i1anufactures sales during the period varied as follous: : 26 to 30,. 1934 L a y , 1934 June, 19 34 July, 1 934 AUt,'llS t' 1934 Se 11t. , 1 934 Octobe:t, 1 93 4 1934 December, January, 19 35 February, 1 935 Re1Jort s Received 267 273 272 282 302 311 303 291 271 193 3 Follon i:1:_:; the Su:)rene Court decision in the Schechter c a e on l _ay 27 , 1 935 , :a s strong evidence of tlle ;of i.J1enbers of tl1is Inc"' .. t o continue the Fair Trade P : c a c tice provisions of t h e Code. There continuec i . ap})l icati on to S8ll
PAGE 486
-455-the CoC:.e An thori t y fo:c the i ssua11ce of HRA 1::!-bels and an unre,.,ort e c _ mL1be r o f lab els, it ' 7 c . s understood , n-ere thereafte r supplied t o ricl-::inG such volu ... applications. Current ;>r e s , s inci.ica t e rt J!1Cetint; or a .';e n e r a l comr.!ittee of t h e l"i01 1 e n1 s Hand b a g I nc.'.ustrJ , to ac".o-Jt a v olunta:rJ Corle a gree!! en t, Tii l l b e h elc. on June 2Li, 1 9 3 5 , to b e folloned by an 'licie e;a t e::--L 1 G o n J"L'Jle 25 , 1935, to a .lJ}HOv e the Couni t tee 1 s L:t. A . l :it ten th<:'..l, ve Director of the for Ladies 1 Handba _ _, Code Authority , is tee: to hav e said th.:. t firns rc)resentin g :-:10r e than o f t h e s ales volu.'lle of t e L.:.6:--1st:;:: ' have a,;reed t o the D&option of suc h an a g r e ement u : 1on the co.:ro :it te8 t s , approval. The p lo.n aios to continue tl e san e cod e ':Tc,_;:es, and fair trade rules. A bureau for the registration of Tiill b e an adQed reature. The agr eenen t also ' 7ill call for the use o a 11 security l a b e l11 that ,...ill serve as a sJ'11bol to r e t aile r s anc"'. consuiners that the man ufacture.,.. is tri th nage and ! w-u.r s tandards, is not eo:ploying c hild J: •• • labor and is e .biclinG the f air trad..e rules. ' I 9811 (Sir;ned) A . A. Fishe r A. A . Fisher Assi s tant Deputy
PAGE 487
9811 -456-E x c erpts from Code Authority Minutes a nd brie f in r e Price Grouping s . I
PAGE 488
-457EXHIBIT 11Z11 CODE AUTHORITY LADIES 1 HAND3AG INDUSTRY MEETI 1 NO. 18 HOTEL McALPIN AUGUST 2, 1934 6 :30 P. (EXCERPT OF INUTES) Code Director, A • . Mittenthal, render ed a r eport on Price Grou ings. (Report Exhibit E It was duly moved by Mr. G. Meyers and duly .ec onded by Mr. M . Warschauer, tlmt the Code Authority go on r e c ord in favor ofnrice grounings, and that a committee tnke the matter un with t he r etailers, and r eport bac k t o the Code Authority. C arried. Reuort rendered on Committee to Study Exi.ting C onditions in the Industry. Code Director, A. ittenthal, uresented the following resolution for adontio n: (Exhibit F attach d) RESOLVED tha t the Code of Fair Competitio n for the Ladies' Handbag Industry amended b y inserting a trade practice rule hich shall be kno n .as Section 16 of Article VIII to as follo s : 11N0 member o f the indu try shall renair bags with ut making a reasonable charge for uch repairs, when such bags show that 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 h i s resolution be annr oved . Cqrried. Meeting adjourned at 11:30 P. M 981 1 I hereby certify that t he above minute a r e a true record. /S/ Irving Schoenholz Secre t A r y
PAGE 489
-458REPORT ON PRICE GROUPINGS The matter of nrice groupings was discussed with the Administrator in Washington, and also with the Legal Div-ision. It is suggested by the Administrator that the Code Authority ask to have the Code amended so as to include the section: . . "Wholesale Prices •••.• To maintain established trade practice , and to limit the of number , but without any a:.t nrice fixing, each uerson being free to determine the to be given at eRch price, the following shall be the wholesale prices, per dozen, f o r sale to r etRilers, 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 feels 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 by manufacturer does not in any way mean the fixing of prices in the sense that it destroys compe tition. There are no two manufacturers who make identical bags, either in style or materials or in ex act value. A nricc range set by a manufacturer for his 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 argest volume of business in the industry is had by those who manufacture bags to wholesRle at $7.75 a only, .and ciJ15. 75 a dozen only, and a dozen only. They give the best value possible at the limit of nrice thP t the retailer will uay for a bag to retail at $1.00, or res-pectively. With every manufacturer competing on these nrice levels comuetition is based entirely unon value and style. The industry is a 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 on a basis of style, auality and v alue. Such price shall be maintained by all manufacturers in the industry. 9811
PAGE 490
459 B:9.IEF PRICE GROUPINGS *** The c onstruction of a s a mple line by a manufacturer at th beginning o f each season involves a c onsiderable c nnital investment, sc that the price levels at which his bags ill be uriced to the retailer must be dete r mined in adv Ance. The r e t ailers have established w110le,ale nrices "hich they are illing to n a y f o r goods intended to sell at their establi hed retail urices. All man1liacture r s kno these established 1holesale nrices and figure their lines t o sell a t these establi shecl nri ces, each . manufacturer striving to ffer the most a t t ractive styles ana give the most 'Value. , . J The custom in the industr y is to bags fit t he nrice levels demanded by the r e t ailers. Any manufacturer ho offer hi line at prices slightly above the established nrice levels, or a t nrice in between two nrice l e v e l s , is c ertein t o e::1counte r bu, ying resi t a.nce from the ret.!:dl ers. TLe result of t h i s custom in the industry makes each manufacturer try to create his own styles so that n o t\'l"o manu facturers ?ffer the identica l bags in mat erials o r in style. Fully 95 % o f t h e manufacturerR in t he industry follow t h i s custom of meeting established nrice leve l s . As a result nossibly fifty o r more manufacturers offer their lines at G7.75 a dozen t o the r e t ail r s who in turn sells such bags at the long price of one dollar each at retail. The experience f the r etailers have been that if su h bags were offered a t $1.05 or Sl.lO each, the v o lum e of sale ould decline more than fifty percent. The same is true of bags t hRt retail at $1. 95 each, $2.95 and $4 . 95 . The slightest increase in the price level is certain t o result 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 large r manufacturers ho do so f o r the purpose of satisfying a grievance against some other manufactur er, o r b ecause they manufacture a lin at another price level which i s their main line, and by pricing their $7.75 a dozen line a t $7. 50 a dozen or less they creat e a . fa.vorab le impression for their main line. At the same the retail e r is not desirou of buyin at a nrice lower than $7.75 a dozen, unless he wa rea o nably c rtAin that no competitor could do likew ise, becau e a price lo e r t ha n 0 7 . 7 5 may induce some of his competitnrs to sell t he bag for less t han 1 : 00 retail and the net margin of profit resulting from a r eta1l is likely to be less t han the margin of p rofit derived from payin $7.75 a dozen and selling it for $1.00 . I 9811
PAGE 491
-460 The retailer, even if he is not inclined to buy the line that has bee n qu0ted at $7.50 A. d e zen cr sometimes at .'S7. 25 a dozen, uses these prices nevertheless to break do w n the price lines quoted at $7.75 a dozen. The quotiug of a price cf $7.50 a doz e n or $7.25 a doz e n by this small number cf manufacturers, creates a price war between the manufacturers. The lower prices must soon be met by other manufacturers. The price of 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 destroyed. 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 luss of their investment in time, materials and labor. The ch ances are, after they have made uu the ne w lines to meet the lower price levels, t l1e manufacturers who are engaged in this price war competition will a gain lower their prices. The whole uractice is a vicious one, with the n e t result that neither manufacturers nor retailers mru
PAGE 492
I ' 9811 -461! H l I 1 A-1 Art Studios
PAGE 493
-462ilarch 30, 1934 Hr. James C. Assistant Deputy Administ r ator, National Recov e r y A dministration, W ashington, D. C. D ear Sir: I am a d vise d b y t h e Virginia Art Goods Studios, Inc., locP .ted in this city, thr>t acting u:oon E xecutive Orcler fr2, of July 15, 1933, whereby privileg e is given all uersons or corporations to petition for e x c ention to, exe''1ntion from or modificrttion of any Code of F air Competition mater i ally affects said persons or corporations, in which s aid persons or corporations h ave had no uart in forming either in p erson or b y representation, they file a petition for modification of certain provisions and conditions set forth in the Code for the L adies Hand-Bag Industry , approved Code #332. In all fairness R nd j11stice the L ynchburg Chamber of Commerce e arnestly hones thrtt t his concern will be granted a hearing in this m atter. They '.Yere not represente d ' . 7hen the final code was adopted, and k no w nothing of its final provisions. I h a ve studied this Code cn.refully , and f eel tha t it '"Till ';;rork a n undue h ardship on this concern. Lynchburg is a n industrial center, and practically every industry is no w operating under its • . In .our shoe factories, textile mills, garment f actories, hosier; r mills and all others, the minimum ,.rage of 30 cents per hour for a 4 0 week, or $12.00 a week, is fixed. Identically the same class of labor is used in the hand bag establishment a s in the other industries and it grossly unfair to them tha t they should be co mpelled 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 are allowed, because of their southern location, 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-Ba g Code makes no such provision. I am thoroughly acquainted with the nature of the business of this hand-bag establishment, and I that they operate on a very narrow mar gin 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. The y are only a small establishment as far as the industry is concerned, and h a ve continued in business only by overcoming t remendous handicaps. The y will p etition for a minimum w a g e of a 40 hour w e ek, a nd for a of SO% of this for a p eriod of at least six or eight weeks. b e emin ently f air, and Tiill only be giving to privileges alloTied under the v arious codes to in the city . May I express t h e h ope tha t the 9 Sll 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
PAGE 494
463 -for a hearing will be readily grc:mted, as I aM sure t1 at the fac s in the CRse uill war rant? Very trul' yours, ( R . D . R . Robert D . Ramsey, Business i.1P..nager. 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 .hereby , 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 engned.in the manuf2.cture and sale of ladies' handbags. 2. I have been President of s aid corpo ration since its organization, and have Personal knowledge of the facts herein set forth. 3. That said Corporation has complied with all the provisions of the Code of F air Competition for the Ladies' Handbag Industry, excePt ::>.s to its provisions relating to labor, as to which riarticular it has been, and is, operating umdeF an.exemution order, expiring September l, 1934; and thPt it has complied1with all the provisions and conditions of said exemption order. 4. That it is essential to the inte rests of said Corporation thn said Period of be extended to such time as the peculiar situation of said and the fe others in like si tu::>tion, may b e appropriately orovided for by amendments to tl1e said Code which. hnve been, or in due course rrill be, presented for c onside ration. 5. That the existing provisions of said Code relating o labor work undue hRraship upon s aid C o r po ration for the folloiTing reasons: 9811 . . Ea) The business in nhich it is engaged is highly COi Tpet i t i ve. There are many such manufacturers in the northern states, vhere the business h2s been an established one for many years; and where the labor required is plentiful and easy to secure, and is able to turn out finished products in a volume ? d a speed which can be equalled only equally skilled and experienced l abor.
PAGE 495
9811 (b) T h e Virginia Art Goods Studios, Incoruorated, is a Pioneer in its localitJ . f actory is located in Lynchbur g , Vireinia, .,.-;here .the requisite skilled labor is scarce, has to be trained. And even when locally trained, the labor is unable 'to compare with that in northern factories, irt the volume and speed of production. (c) The practical a nd inevitable result is that the Virginia Art Goods Studios, Incorporated, cP.nnot successfully compete with other manufacturers whose output p e r capita of emuloyees is so much greater. ( d ) An analysis of the oooks of Virginia Art Goods Studios, Incoruorated, discloses that during a typical t'l'iJo-weeks p eriod in S eptember, 1S33 , the Comnany ' s nroduction Rnd sale cost, exclusive of officers' sc:tlr:-.rie s and overhead, ,...'P.s g;l0, 321.12. The sale price o'f the products so was $12,205.50, shoTiin g a substantial loss when s alaries and ov erhead are taken into accdunt. U n on its fall operations in 1933 ou r Comna n y sustained a loss of 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. Ev ery reasonable endeavor has been made to increase production by nrope r 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 ov erhead, w a s $4 ,853.47, still indicating an actual loss. Tests mpde in our factory by our production manager , rrho h a s h P . 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 todifference in the e fficiency of our e8 plbyees 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 tha t the selling price cannot be increased. The onlJ' source of relief would seem to be a more eauitable wage scale for our territory. T h e V i r ginia 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 manuf acture in volume a nd sell at a reasonable profit. , , '
PAGE 496
-465:aut :recently there have been infTingements of its Pc>.tents, and cheap imi ions of its exclusive products, ..,.hich have InRterially affected its and \'Till most be more dis?.strous in future pending difficulties of litigation 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 need of a lo !er nFt.ge scale for our industry, nhich would not a hardshiu on our in view o f the lower cost of living in the south. (e) TheTe are man? exuenses, including taiCes , licenses, rent, po-er, light and hePt, "hich common to all industrial concerns i n its locality; a nd yet the Virginia Art Goods Studios, Incoruorated, is required under the Code for its I ' tdustr;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 with such other local industrial concerns. 6 . There are very few, certainly not exceedin{': half a dozen concerns o:r estc> .blishments ene;P.ged in the manufacture of ladies' handbag s in all the southern states. Those few are striving to develop the industry in their resuective territories and to provide for l abo r now unemployed . But upless acc orded a proper differential as to wages to be paid their er'luloyees , they will be so seriously handicauped in thei'r efforts that they Pill not be able to maintain themselves on a fairly profita le basis, in COJ1peti tion With more fortur.ately situated cornpeti tors. 7. It is n ecessa. :ry, in the business of the Virginia J..rt Goods Studios, Incoruorated, to er:roloy at Rll times a number of unskilled auurentices or learners, who are inefficient and . not productive during such ueriod of trainin , at this scal e fixed by the Code. And this 1 aterially increases the disadvantage of its situation, as a com petito r of concerns ghich are not compelled to use such untrained l abor to a like extent. 8 . This affiuavit is made for the puruose of filing he '.Vith the Adflinistrator in supJort of the uetition of he Virginia Art Goods Studios, Incoruorated , M ex ens ion of the period during 'Vhich it . be exempted from he labor urovisions of the Code of Competition for the Ladies' nnndbag Industry. 9 . A o f s aid uetition with its documen s , has 9811
PAGE 497
-466been to Code Authority, Ladies' Handbag Industry, 347 Fi:Pth Avenue, lJe\7 York. /s.f Mamie E. Rohr Subscribed a nd sworn to oefore I!le this 25th dRy of Augus 1934. . . i liTNESS my hand and Not arial seal. / s / Emma D. Ambrose NotRry Public ( SE.AL) Uy commission expires Sept. 4, 1934. STATE OF VIRGIN+A, To-;/i t: CITY OF I, O. H. Tufts, do the'following affidavit: 1. I am a C8rtified Public AccountHnt, residing and doing business in the of Lynchburg, Va. . . 2. I audited. the books of the Virginia Art Goods Studios, IncororP .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 Cor poration for an extension of the period of exemption from the l qbor provisions of the Code adopted for its industry, and checked the figures therein set forth for 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 e xcess of cost records. The $11,000.00 loss on its business during the fall of 1933 is correct and in agreemen t 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 GIN IA, To-. i i t: CITY OF LYNCHB\]RG, I Edmund vvaltuck, do hereby make affidavit as follows: 9811
PAGE 498
1. I h ave h a d man y years of experience as designer, superintendent o f labor, c:lld ion ::lannge r , in f actorie s engaged. i n t e manuf..-..ct re of ladies' hand f\bS , in northern sta tes; and n.P1 now Production lAc:>nager for Virginia Art Goods S t udios, Incornorated, a t its f; ctory in Lynchburg , Va. 2. In the northern s tates, where tle ladies' h a s been establish e d for many rec-rs, there is at all times a n r:tvai l a . b l e surml.r of skilled la or suitable to the needs o f the sever p l manufacturers. 3. In Virginia t h ere is n o such o: skilled labor, nnd in the Lynchbur g fr:tctory of the Virginia Art Goods Studios there i s always need for a numbe r or' le,.rners in training who :::.re n o t probi ta.ole nroduc ers d .uring t eir period trainin g , which i s usually about or ten weeks. 4. The available labor in Virginia, even aft e r t ra.inin , is not able to turn out the same volume o f urod1ction per a of employees c:>.s the same tY:Je o f 1'"1bor in no: t fqc ories. This is due to t empc rment?.l, rae i a l , '1d cor1muni it ferences, which are likely to continue to exis , or reflr • 5. T ests the . t I hav e m P .de i n the L •rnchourt; disclos tha t the volume o f nroduction by tl e regular emplo, /ees available i$ onl y about O i tlnt secured in northern f actorie s under simil a r conditions. Is I Edtr1und , ;.,1 uck Subscribe d a n d s i'Torn to before me Llis 25th d of August, 1934. fiTNESS M Y H.A1ID ANTI NOTARIAL SE.All. (SEAL) l'av 11 , 19 4 Miss Mamie E. Rohr, President, The Virginia Art Goods Studios, 130 6 Church Street, V a . Dear Miss Rohr : In re ly e r o Division 5 . I h ave' been studying the or o n yo, r apolica . t e Code of Fair Co cti ion tion for an exemption and mod.ifictJ.on o for the Im.dies Handb a g Indus try 9811
PAGE 499
As you R.re FJ'. :ra :te . , a HeRring w r s held on a number of other applications for 'exemntion Hn.,y 7, ett .,.,_,hich time :1our petitions and correspond.ence into the records. Before making any finai decision, ho• : rever ,"'it will be necessRry for us to have much moT e complete informr-1-tion on your ueculiar problen s tha n '.:re now have. I should a:oureci ate your submitting to Ple 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 ( lone in 1933 in bag s made of imitation leather; (3) The amount of business done the year 1933 in bags mc>.de of fabrics n.nd other (4) Do the same workers work on 11.ll three types of bags? (5) How many workers were employEld in the ueak of your season in 1933? real (6) How many were employed durinb lowest uoint of season in 1933? (7) On what b:.1.sis are your V!Orkers coml')ensated? (I.E., piece work, hour '/!urk, or week nork) (8) Classify your according to o oere.tion :oerformed, hourly coMpensation of each. (9) In nhich price ranges are your goods sold? (10) Since the adoption of the Cod e , has there b een any change in these price 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 your wholesale price is by selling costs? (13) \fhat uercentage of your wholesale urice is represented by . administrative gen eral overheRd costs? (14) WhA.t are your regular of distribution, w.holesale, direct sRles to retailers, etc., etc.) (15) Do your products enjoy A. nationP..l-wide distribution? If not, in which aren.s do you make your sales? (16) Give me the names and addresses of your most direct Upon :eceiut of the aoove infor.mation, I shall be in a much better position to judge your case. V ery trul._r yours,
PAGE 500
--169NATIO: ,AL RECOVERY ADHL. IS'IRATIOlT :J. C . , 1L'1a 1 , 1934 To: Miss Robinson From: Mr. F arnsTiorth Subject: VirEinia Art Joods Studio, Inc. The Virginia Art Studios filed the a petition for exemption from c e rtain p"Lovisions of the L::tdies Hand"eg CodP. pursuant to the terms of the Exacutive of July 1 , TL1Cse peonlc, I understand, had one or more -:-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 wa s held on a numb e r of other similar petitions o May 7, and at tha t time tne briefs filed v his concern e e entered " into the recorQ. T1 ese :Jr ie:::r-cant inec rrucn n<>cesS"'L',/ in:'or:n..., ion, but most o f it '.'T::tS o f a mo.,..e or less sort. J3efore rendering a final decision on the matte r , ce tPin information n itR necessary. If the petitioner been . t the . earinc, his information could have been elicited by direct uestionin-. Si:1ce this is not the cp se, it '7P s necess::>ry to secure it r corres ) On::..ei ce. Attached herewith is a copy of the letter, dated i..::!: 11 , sen to this finn r eques further informa ion. To date '10 "'Ck'io•.vled , ... e n o : this has been received. I unders.trmd thr t these "I'Je01Jle to t his aurJs ivnTlaira OJ the ground that it ' .>'auld eClui : e t'"'O ee}: s in rr-sti ation b, a certified nublic C'.ccountan. A a:-t} ,e e nuestio'1c, I thi:lk, show this is not entirely ti It is s ficie t to ansJn r the first three questions by neans of au1J o-..:im8tios . ions 4 through 1 0 certainly do not reaui• e th"3 "l.ssista:1ce of : n acco ntan • A quick glance at payroll records wou l d be sufficient to ell of them. The most important ouestions are Jos . 11 , 12 , an 13; a exact a.'1s-;rer is necessq,ry, and it is concei 'IP ole o:' an accolliltant might be neces..,t".r y . ::as firr.1s, hor>vcr, figures in the o !dinary course of 'lsincs:; rnana-ement. Q,uestions 14, 1 5 , and 1 6 , of course, ci.o not reaui e of an accountant. /s/ \ . P . """' • . :n. P • 9811 :or he•;c n. t r dv ices sLc re t ese as..,i , ncf's
PAGE 501
The Honorable C arter Glass Unite d State& S enate Washington, D. C. M y dear Senator Glass: 4 7 0 June 1 2 , 1934 I s en d you herewith copy o f a l etter dated May 11, address e d to Miss Mamie E. Rohr, The V i r gini a Art Goods Inc., 1306 Church Street, Lynchburg p Virg i n i a , petitioners for exemption of the provisions of t h e L adies Handbag Manufacturing Code. I also s e nd you a summar y of the status of t his petition. •As I am very anxious to do I C ,':l. n for Mis s Rohr, could you assist me in h aving the u etitioneT s s ubmit t h e information requested so tha t the p etition, if ;.i l l be b ased UPOn f acts in our possession, a nd in accordance I'Ti t h A dmin _ i s tratio n requireP.lents. (signed) Sincerely , S O L Ac Di v i sion CO:UE AUTHORITY LADIES ' rmUSTRY 347 F i fth Avenue July 3, 1 9 34 Mr. David Barr Assistant Deputy AdP.linistrator Department of Commerce Building W a s hington, D. C. Dea r Mr. B arr: We a r e in r eceipt of y o u r of Jt.me 29, 1934 in reference to t he Virginia Art Goods Studios. The records o f t h i s case in the Administrati0n files snould s h o w t he f o l lowing : This firm did m ake a p ulic?.tion to t he A dministration for excePtion t o t he C o de within t he ten day s fol l owir..g aporove J of t h e Code. H owev er, it w a s u roved th2.t t h i s :firm ry;=-_ s a member of the Associa t e d H an d b a g IndustriGls at the ti:ne t h e C ode P .puro v e d , and since the A ssociated Handbag 1 ndl&.strie s of ArnPrica ras the s:oon sor of the Code, t he V i r g i n i a Art G o o d s S t u d i o s "ler e ass e ntors t o t h e C oda . In vie•v of t his i nforn a t io:'l furnis:1ed by t h e Cod e Autnori t y , the Virginia Art Good s Studios wer e notified that they n ere not entitled 9811
PAGE 502
4 7 1 to a h earing . This i s the laf>t tha .. t h d f h . ear o t e case, and therefore t o o k it f o r g r Pnte d thrt o oxccJtion to e Co'e ht hi"' Virginia Art Studios lost $11,000 in tne f1.ll. make sli. cover bags , and i f it wer e not for th:::ot r1e co ld 110t hwe s a;ve 1 in u ... i ne" • . I n the s uring we made eno -::-1 to s tana. loss. r s L, te .an t3 • to go out o f business in the fall , but cold not dot to people 1'1er e denende n t on u s for or k . e t e e d in s i e of the f act .we '"ere losin g . .rhen the !{. dbfi[ Code L.:S u) :or d sc 1.3" ion in N e w York the thi n g s '7e are :l..ski nF-; for e:ermtion on nre just ' s discus sed and nc=tssed o n . A f ter t •" t , the Cole .1 s ch n "Cd. •i ho t our knowing it. \The n i t .as uassed tr1e nin.i.mur. va c w . s raise i and the period left out. hiR. ORE: Hr. JH t t enthc=tl , d o : ou l .ve an;v kno led.ee on recor d Hhich 9 8 11
PAGE 503
-472 -would show whether or not t h e notice of the uublic hearing on the Ladies' Handbag Code Pas sent to the Virginia Art MR. r.IITTE:HTHAL: Every k r10wn member o f industry was notified. r ,m. ORS: You know of the public hearing'? MISS ROHR: Yes, and I did not a p ! Jear but wrote to l>.'Ir . Glass and filed a petitron. HR. B.ARR: On the b asis of that evidence, the petitioner is not entitled to an exemption under the July 15 order. They participated in the of the. Code. HISS ROHR: But the Code . I p articiuated in I was T1Jilline; to live up to. I know nothing about t h e othe r one. i'IR . ] A '!:ffi : The indus try a gree d to submit c:; certP-in Code . \lhen it came to nublic the auoroved code 1:'!R S t h e s ane. 11HSS ROHR: i{e h a d no southern renresentative. L m . ORE: I think w e c a n '.7aive that uossible technicality. Do you to the Association? . l.HSS ROHR: lie did not nan t to. bE;')long to the L adies 1 Handbag Associc> vtion. H R . ORE: She did not assent to the code of 35 an hour -out an hour. l>'1ISS ROHR: And a s the code w n s presented to us there was an apprentice clrnse. HR. 1.1ITTElJIJ.'HA.:W: At the meeting of the Association there was a proposal for an apprentice clause rrhich did not becon e ['.. u art of the Code . The rc:tte of 30 an hou:::a t thR.t time was op -posed by the Labor Board as being inadequate, C:nd it was m ade 35 an hour for all sections of the .country c.nd. it ' .'as apuroved. } ,ffi. ORE: \;ill you state your viewuoint for the of the record-your attitud. e in relP..tion to this e xemption'? . . M R . I I ITT:SNTHAL: It is m y understa n6.ing t hat ! !iss Rohr h a d received a letter from t h e :Deuut y Adruinistrator . . . nd that she thereunon paid a visit to Deout y A d r ainistr:ttor :S:o'Yf1.rd. I.Iiss Rohr r-tgain visited the office and R.fter tnatvisit s h e had not received any satisfR.ction • . HISS RO!{g,: The first letter stnted ,...e v:ould be g i ven C'l, hearing. Then Tie h a d P. l ette r of :::-efus a l s::lyi no "Te did not participate. That letter was n o t a nsryered. lffi. M rr rrl E lJ'rHAL: The Code Au i t v acted u uon the ueti tion after " -a thoroug h study of it and the conditions the t particular fR.ctory . The y voted the problem of the Virginia Art Studios r vas no 9811
PAGE 504
different than thr>.t of p erhans 100 other firns loca ted outsiie of Neu York ope rat ine; under sa .e or s i1:1il, r con:ii t ions, [lnd thnrpfor e refused the MISS ROlffi: I V?. s not notified. MR. M ITTE HTRA.L: That was sent to the or. It ,,s nen our understanding the herring in Tinic. t!.e of the Vir g inia A r t Studios was one of the cases to e l A7t'1is hearing the 1Tirginia Art Studio s did not U'.lt in an a-one: ranee. ........ MISS ROlffi: M r . rlOTiard ?nd M r . Rosenb latt old. us -e did not need to c ome . I wa s sorry the. did not give us benefi of comtng . sister and I caJ1.e a fe, days before but 1;:e could ! at sec ' . r . Howard. COLONEL :BERRY: I an exerrotion is of only a emnorfl.r, nature. 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 cn..1 file nn amendment. I think you should follow thrt method. It is from a t a l k with the Division Administ r :=ttion the t :ru ,....auld reouire a 4 minimum ' . 7e .g e and. a 40 hour 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 the other co_es in L.is sect ion. M ISS CHHEIJEFjfJ.AN : Instead of 30. and 3:=) it nill Je 40? COLONEL ERRl\ G : Y o 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 fn.r ::-ts I l G10rv. I d.v at think ':.his lady can exoect to t;et a permanent exei'l-otion ana. t!l<:.t is t e only t < t rould five any relief. Hy suggestion i s to brlnG uu mendnents to his code, ;hich i s her pri rilege. The urOller co 1rs13 is to orouose these amendments and b ring t hem out for d.iscussion. ' MIS S ROHR: I t is not our uolic to nnrler )a/ our neople. They_ feel sure we R.r e to t:;ive tr!em rll -qe can. All rw '7etnt is to make a fair a n i give the rest b nck to e-ulovees. COLONEL :BEir.W: That is eoni the u:.uvince of ::iilA. MR. OF.E : met Colonel srns is true. 3''t c ':"JUst s all evidenc e to suo-oort t his netition '!o r eith"'r c>.:onrovn.l c deni 1 Y the Division COLO:l\r!;'L ,,r_ 1,"'t ""'e-riod o: ti .c do vou 'an 7 .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! SP e Y"Uf HISS ROtm.: \ie t-lsked for o.:t. e "lini.. L':l . , 0 c..-'' ov.r a 6 eks COLOH EL BER'RY: YO'l re 7 .:m -OUT O:i." ...... u ...... per i o d . ThP.t JOuld -e less tr ?.n Sl5 t3r:roloyae . 1' .• ,.,.. ' ld no e a material hel p . 9811
PAGE 505
4 74.-MISS ROHR: Vie ::1sk for 8 . 30 minimum. MR. i •HTTfuJ T F..AL: As r eflectinc t r e a t ti t uclo of t h e Code Authority, in orde r to iJEJ.Ss uo n tne petition o f the VirginiE A1:t Stucli0s we wrote to t hem information e .nd 8 t a tistics of their ousinesr. and v:e faile d tcr c c eive any Vi3 e l s o rre r e t o l e . by the_Ad.mi n istr8. t i o n they had !'equest e d c ertain facts which 6.H1 ilo t obte.i : n . MISS ROER: I t h i nJ: I tl 2 t . I B.l:ce.s fJ.lG c1. 1.'!i tl1i s Adi!1ini s t:cB. tio n t e ll day s e.fte r of the code . IHSS ROER: Tr.tB. t is not iiv'12.t Gle.ss t:1a t -l1e saic:. lih. . OIDJ: Re .:;ecrdless o f thBt ths Cocl.e A u t ; _ : o:cj_ty i s ay""Jroved by th<3 Gov ernment a n d it is not o ptinnal with t hem. The fi6ure s t hGy o b t aj_n :::.r a a;.1d not t o be :"iva n to ot:1 a r members of the iHdustry • . Ther.e two man act Cod.e D i r ectors , and I have -3very reason to beli e v e t!1eir wor l-c i s ke) t c o n f ichntial. \ h t l 1ou t f acts in the r e cord on which to ba. s e your :J-:;ti tio-.1 fo:i: tl ey :hac"\. :.1ot l ing else to do but to s a y the; '/ coulcl_ n o t .:_,: c:::. 11t you -c1.n e Y : ce:>tion. You l : a v e been st2.yeO.. You 2 . r e opara t L1_s u:.1der a stay n ov.r--I bcliGve a bi: t irregular, but the Adrninist-re.tor ro. s ooe;1 fit to overloo\: t:n.e t e c }mic-.li ty and p enni t you to t e unc. e r e. r. t a.y y o u e . r J no : r your employee s the m i n imum of $12 a 'r:-:;e:c. MISS ROH R: V e r y few of thecn get littl e . It/IR. ORE: The hour provisj_o-1s are satisfP.ctory. As Colonel :Berry told you, of these codas are to be r e o .. o.nQ.. brought into line with the of t i 1 e Ad.'11i n i s trati o;:t !:>_ t 40 an SU(;[_'esti o n of the L abor A dvisory :Soa r d . I n order to Il.:=!i 1cUe your ce se: in the r e gular mann e r ve are giving you ti1.is heari:.-1(; ancl t L . e Industri a l Adv iser and tlJ.e Labor Aclvisel' are ) rescmt . It tt'a s not n a cessary to bring in the othe r but , , ,e ere givinr, :::-ll r eJrasentatives e . clnnce t o put their sta tements into r ecor d . •• , 71 ' • d ? ....... -u lv1r . b2.rr, J.1.?.ve o.xp ressec • . :J'our 1 eas M R . :SA?.R: U o . I rm ilOf , _,..ith ;-{our i clea O"lltlined. b efore. I e . sl--ed for t1w questi o 1mo.:...rs ent.1 ne e:c r e ceived it and I hav e n o actual fe.cts U Jon v:l:1i c h to base s.:a:' con " c lusion. The fi:..st I ::neH t his petitioner em)loys as mar.:.i ::eo:•"'l e e.s they C:.o :?.s ?es tel'd.:::ty. I . t h oUf;ht it
PAGE 506
4 7 5 -sr.1all concern with::-.. lim i t e d \ Hoducti')n ::l.i1c' if t:.. orl; r! ages of the v B .st ;a?jo r i t : of th..:ir sr.12 .ll o: '3 ::n .. i k e othe r :9eti tions ,,-:,, , :ce c eiva d . But I :fo,_uJ.O. to.-.E y .y cr.r lo y ov .r .60 people. MISS ROH R: Not e .ll of th3 y e e . r . Juf:'t in S )rin...; \.:r..c11 c 3 lip covers and that is not hancl b:1g MR. BAW: Fror.'l m y C};:;_Jeri"nc e ' iith ... L s ry Lt i s conside r e d . a lart:,e r .1er n b e r o f t l e TJ .. _;ir rross is o v r 000 a year. In t h e tJ. ey em lo.t R b c u t l 0 .)10 . in t :" off ;;eason about 8 0 , and v ery f ori o f the [.Gt ':L' .. 1 . : r )ffice in Ne,-v e .:'lcl s ell i r . :it .. o t :"c : ....... u :acturers. I do not see ?ny t i n t'11e 0Jti t ic1, n:>.t :iss ...-:>.s 1ot finisn.e d her testir:to n y and o t il c r f::>cts !.:?.y b e 1i.'..)u-L_:1t ot...t . COLON::ili For lw . t )eriod did s h J e sk v : :ention? MR. Jus t und---r t h G 3xJc utiv3 Ord0r. COLOEZL :BE:.:t..-q _ _y: Is thE: nor1 in MR. BARR: Tha t is correct. -?..r e holdL1 thi s ::: ... in2,; the u r 1xoose of terminatin g tl1i s sta y . MR. I thin:c Mr. T2; ylor 112s g_ s t e .ternent . MR. TAYLOR: The Ind:u.s t : ;:i a l AC.visor y Bo? . rcl "' S 'J clie vn, inr': ... cent . r . Most of these ,-nanufe..ctu r e r s ?: r o i Y t Sr1B.ll t 0 ns O \l.tsi of ] e : or, in Rochester, Nev1 J erse y s m ? .ll to .n1s, a .nd Sonwc t i c o t i n ,.,11i C 1 1 to r ely U l JOn fairly in be...,innil'"' so tr _:-c i s no thing pa.rti cularly uncommon o.:b out Virc;i ni::l ... rt ion. VIR BAIG : wa. s e o 'Ju t it. AlJo t v .)l: :.: or t .: ago this matte r ce.me up 2 . nd. I vms c:i:i ::.c t ccl to cl J.::.vr u•"J P n orJ. r grant1ng a :oetition. Vlhile t his v:B. S i .. J •w:t:cir.; Colonel Lr: ,c!1 c--.11 d me i n and then Mr. Ore C B .lle d t: is mor-in,:; . COLONEL ]3Ri:l.Y: The s e gen tL;me n ? c_;o1 . 1.J t o ) r C o s"' your When will you be able to g e t n to,::; t l s r ? Will. M I TTEl lT=-IAL: The n ext rneeti:.1E:, o f t l e C oc'n A Y1.tJ.1o:ri t r is ,_:u.rs day. We have B . meetin g e v ery t n o 7e::::: :s. 98 11
PAGE 507
-476COLQN:i!jL BERRY: Vic will :1a.ve to hava a .lea.rint:,; 011 thc;se ame1 cl::1ents before the end of August. The :Soe.rd 'nill J.w.v e sor:1e EJ!lend ments. Do you see any objections to :9exmi tti::g t his o1.der to .;;o into effect a.nd r emain i n effect until first of' S::.nt embcr, l)rovided the petitione r desire s to p resent e.i.l e .mencl_netJ.t t o the c o0e Lwolved to. get a diffe r ential? MR. ORE: In the. t connection, s2 .id to l10ld a hee.ri!1g and act the stB.y. She not 2 . ior!ilal ;ati tir__.n for e.n e xem:1tioH b efore the Administrator novr. S h i s B . sta.y. The Ad.!lLlistra. t(')r vras. of t:L1e s ame mind that nere on}$' a fev1 i nvolv-;d. Afte r the c ase has been s ettled on its merit or at time, .any int2.res ted :9arty has a ri6llt to file a l-;eti tio n for amendr.1ent to Code -with the Ccide Authority. t:10u t;h tho Code A-c:ttb.orit" may deny it, they are duty bound to tur1 1 it ove r to the Administration. COLONEL BZ:tffiY: If the cliffer::mtie. l question is vite.l to t'.is, there would be no objection to : ;!a.l;:in::; :.8. )eti tio:1 to Administration that this stay not be until l. 11/J.R. TAYLOR: T e rrnin-::.te the stay r->nd i:;re. n t a 6 :-:eeks tem:qorary exemption. MR. BARR: If the stay is termina t e d as the t of this hea. r ing and the und.Jr the-order of J"L1.l y 15, it should be extended t'1 t hose sim i l a.r l y situ-at ed. COLONEL B3BRY: We do not kt101.'J y o t the si t u.atior1 for each nenber of the industry woulc.1 have to file 2.11 inc ivid:u:>.1 l)eti tion. MR. M ITTENTHAL: The Virg i n i e Art Studios is one of t :.e most highly regarded firm s in t he Their ousil:. ess t a .ctics B .re of the vorJ t.ighest, n.ncl tl12. t l ,iiss 3ohr says v1i t h to this case is exactly as she ste.tes. Tl:.e :7rooll3rn: tnat is to t !:e industry because of the t;.:c m 1 by the ViTc;L:.iE>. Art Stnclios is one of grave moment to the i:1dustry. As it h?.s 0eel st-?ted here, she is comyetine; \7i th mam.l..facturers h 1 othe r of country e.nd i1 HeYv and is able to maintain a ,:;ood volUit1e of business anC:. I under stand the firm is one of e1.e best rated firms i:a t:1e i11C..ustrv. The Cod e Authori is vcrJ much i::.1t e1 ested end con c erned in t:1e outcome of this case. We have had petitions from firms as far sout h e . s f.O:iami, Florida, ancl there 1Nere no exem_)tions g rant e d in anyof the othe r case s that have come oefore the Code lv'J.R. :BAP.R: You mea n the Cod e A u t l1ori ty has never r ecommende d e .ny. IVJ.R. M ITTE i : J TH.AL: Yes. I some e ;)0 le:1::. tion is due the CoG.e Authority as to VJhy the Virr;inia A :tt Stucios h o s oee:n o p er::ttint; undera stay without any lG.1ovJledge of tl1e Cod;:; t r . It w a$ our Ul1 d arsta.ncling the.t failure to at tho was a t that time. We r e c eive d no notice of it. 1i7e r e c eived . a letter from the Virt;il1ia Art Studif)S they would use labels o f tha Code Authority the Cod e 9811
PAGE 508
.. Aut ority dilly t i:e outcome, a;,1d natever is d')ne r u.st be in co 1s r tioJ. of 500 man'..lfe.cturers o ar-s O)er1. ti; .me er tr1e co /ISS SCDTZI Zrt!.:.All: m: e ILbor Advisor .. 3o3.rd is ory•oscu to r>ny kind of territorial differential. Cotton Textile differential t'.c.t vas d in t. first coCle, •,.; a s a bad precedent to s e t . Ho • e er, t:"' e:-..c'..ls thin6 t}.;.e otnar .12.nufactu.cers t • .ct re i tfl So-ut". a. d outlying distri_cts. I this laC.y :C2.s cnjoyt.:d tion ' no o : r rr.anufacturers have. I t!: it Ui.f:i to t: ot1 t;;r .. ct.1rers ISS :rtOHrt: /mil e ' e ? . r e :r.a.:in;:., our s?.m "'3 i'3v.:: 'ad no1 ody but our eX"Jerts ...,.,, 0 a r e well )aid so r10 1 not dvn until right no . • W e have qui'te a nu:"b-3r of t .. b?.c:: !d so "" of t ..... r . get $12 b u t most get more. T. e ir..eff" cient '1a.ve not b( L n calle d e s yet. 9 8 11
PAGE 509
..:478 -MR. ORE: That is one reason why :va c alle d this hearing . He nant to s ettle t his case R s Jossible b e c:,.-u:-:e k:iss Rohr is comL1t; -c.. in to her pee. k season 110'17. M R. M ITTElJTHAL: In view o f what ss :Flo h r has said, I think it most imrortant for her to just y , here she ste.nds. MISS ROHR: 'vYe have absolute l y no desire to ha. v e any consideration 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 other peo p l e . We v iant to SU:.fPlly our with work 2 .nd. make c. f air profit. L ast year in working 'Unde r the we had to borrow from bank. VIe c.on!t vrant to demands on our bank. When we wer e first in business we mad e m oney. VIe raise d our peopl e . The n cam e the l ee. n year s 9 .!1d '78 lost money a.::1.cl the last 2 or 3 years if it h9.d not been for our sli } covers we:.. would he.ve been in the r e d e v ery sine;l e ye: .r. I c 1 o not cons::.der we offer undesirable competition in the handbag industry. New York stores \7on1t buJ our bags. We have no market for our pocketbooks in NeN York b ecause v f e cannot ColTI]et e vri t h the; Hew York firms. Our peo} _ J l e do not work efficiently, and we 2.sk just as as we can ask to make a profit. MISS 'vVhen you made .the statement 11vmrkine; u.nder the code last fall11 you meant t l 1 e President 1s -Reern::)loyment Agreemept. Th e r e was no code las t fall. M I S S ROili'l: . Yes • We l o s t $11 , 0.00 • MISS OR3: You wanted code to r ee. d .30 instead of 35? MISS ROHR: T h2 , t is vthat we t hous h t it Y i e . s going to be,_andw e paid that. COLOHEL B3:rffiY: How e .re you noYJ )ayine; $ 1 2 to? MISS ROER: There :are 8 peo p l e out of 5 1 om:9loyee s g etting l ess than $14. COLONEL BZRRY: The:ce is a qhcstio;1 t L.is stay should be •:erminate d or whethe r it should b e oxtenc.ed until Yle can have a hearint; a t erri to rial differ oEti2.l. Vle ex::_Je c t to ;Jropose the amendmen t vro. viding for a t erri to rial diff e rential. We can 1 t t:,rant a ner manent exemption. MR. TAYLO::: 'vVhen does the f all s ee.son 'ba gin? MISS ROHR: Right now. MISS SCHNEID3RM.Al\f: May I C...:cf.lw your attention to if v1ha t Colonel B erry says is going to ha:>) en--if thi. s i nd1:stry is t:.,oing to 'be brought up to a higher mini mum of 40--e v e n if she bets a territorial diffe r ential her rate per hour is going to b e h i e h e r it is riGh t 9811
PAGE 510
4 7 J -..... :::;R?.._: Yes, 2.:1cl for :.::o:.: 1eJ i too. I-. t _ • ot._ r c o d e s ther e i s e. ch ffer e n V.e.l ' e t,-. _ :..le :::>n(. l1filSS I ill n o t .. 1n !::>_ 'i : ,r.enti...,l :or if I hav e anyt hinG to l . O :r;rit' t h i s c2se. .m. BARR: I n the s2.me oll t: ... c!'G "':..::;a o t 20 out of getting $18 and o v e r , a n d ' s ome a s a s $r; 0. .,r 4 ')'1 7-a week. I t inlc t his sho:;s 2f ine a<-,a s 2 e . ':.i s :1;,rroll doe s n o t p r e sent a :;>icture l n 1.'ihi c i t om "oe R<:: l '. t::e ro a .1.1i 1i.. ,."71 "O a har d s h i p . MR. O!G : I f t h i s stay i s v ill, of coUl'"'._., in0 .);-; tne code ? !'ISS RO!-:R: We'll b8.v G t o . M R . OR::j: I t i s the dut of t } e --eru t:r t o t.,.,::e f"'cts E>s rub mitted her e e . ncl Llc m subm i t t l em to t:le Di v i s ion cl: inistr:-1to1 i t 1 his r e commendation. Y o u a r e l111cbr :>.. stP.? until tl .. .3 order come s c . e c i d i r .. g thi s c a s e . ':Ie c'.o PUt to t i e 'l': •• :ou. rsi .. Lss until t11e stay is t errnim: taC., ::::1,_-_ in 0 ithe ::>.sc ' l l ':."'v t o c o with the code. T' erorore , it Yiill bo ::10cesr::r J for b1:3 Coclc . . ori t to is s u e l a b els t o t:1 e Vir:; i n i a rt Stu.cho s w • . iR. ORe:: I ssue the htbels t o : i s ?o:t ' .... -.1c i t '.ill 'Le t:1J din c r etio n of tne Divi s iol'l Ad.J-ninistrq,tol' o.s t o .. o.-: _"" C',_ull '-'Ct u1on th..; stay. I k no w y o u v t i l l irnrnccl.i::. cor )ly '. i L .ode ;:l}cn "'n i : the stay is t e r mi1 e t 0 d , an& I ,_--o-LllC. sn_:es t',o.t ;'o.1 yo ,_rs.Jlf for a r aise in r1abes , a nd. it YTo u lc.'. b :; to f i _).lr0 t : . ..,:, in :rour forthcoming marchanG.i s e . rffi. l V i i TT:3li1THAL: S:1all I co,.si t1.: t .,n fr.):n :ron to t n e l e .bel. Ral. OR: Yes. COL O r 31 BERRY : I f y o u can su. st,::>.L1 ''oursel f for ..., t.-rri torial diffe r enti al, it vvill b e o . e t orm L 0 d on f9. t . l'fi SS ROHR: We hav a 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 or oclu c t ion. r e S"lu. fl.0 1oulcl. lh; a st2 t e m ent i n regard t o tne \;::-")CI'iC'1CC la to : ..., M R . ORE: Tney shoul d b e su'L. n i tt3c.'. t o t:. Corl ;.: .t .o it. Do you wan t a diffe r entia l f o r w o m e n? iliSS ROHR: No. Our v1o:-nm. 1 "'t t : a w o m e n1s org anization. 9811
PAGE 511
-480-MR. TAYLOR: Und e r t'1e co:1di you o1..1tlL1 e of an increase in wage for the inc"tustnr, no matter ho,this turns out ,iss B.ohr will have to incree.se tne $14 " -week worlunen, will she not? COLONZL My r e com . aenC2 .tion Hill be t1:.e.t tJ.1is stay continue until tl1.e hearli18 i1.e:At mon t J ."l 'if!'leil s :1a ' . :ill an o:Y1ortuni ty of )resenting an. amo ndr.1ent for t e r:citorial d i ffelcmti?.l. If that is out -she _will hav e to abice by t ; _ e coce a s it n o,_-' stands. M R. TAYLOR: She will to iEcre:;>sc :1er v.ri tl1in e . month from now a n yway . Since it me.l:es 2 . few weaks c1iffe reJ!Ce for only B worlanen, can wo t eminte the ste. y norr. You vlill he.ve to increase those few wor:Tie"i.1 aj:-..yvray. . r J lR. Vihen they r a cluc e their force from 160 to 51 they maintain the key :peo:9l e and. the i rre.::;ular WS':i.:.::ers e .re not g o . r i!ISS ROiiR : We n e ver have 160 "Y)eo-:Jl, 3 in ti1e fall. In __ s)ring the work we CLO is not for the most skille d wor;c. Th ere is no reg. l oo cketbook wor!c. We fold our cot ton founc.8. tio:1s on e . .nd the outside covars e . r e se,_-,e(l_ and. om:broide r y on b;r hand. I t is to make that sort of thL1g that v1c eraploy so rJe.ny MR. :OARl:: i,' iiss nohr' s t11e ne.ture of her work brings her furthe r e.YlB.y from line. She d oes v e r y little in the fe.ll. i.iR. M iss 3.o11r when she se.y s slin covor, refers to a sli ) covering a ladies t hanc"b qt; . COLOlBL BERRY: A sug._,estio to Cod e A-u.thori Would it you any if t erminated stay a:ncl g ranted a11 for 30 days until the first of Seot omoor? NiR. l v !ITT&JT:ti.A.L: Vle wou l d 11av e to h a v e a v ery g oocl ree.son. MR. OTI : So far as brint; h e r in com )lianc e to
PAGE 512
-l? COLOlJEL :B3:il::\Y: If i t is u ranted nov: , si.3 V'ould to ;o under the code rig h t av!ay . MISS SCI-1J i 3 ID3? :J...!. I t h i:'L;.: I my 10int of v iJ' .' rn1.:be 0nti cl v;rong . T h i s l a 'y has enjoyad a tisfe..cto r.,r? ':'orr .. this stay J uly 3 1 an(l_' E;r::'nt you a:n e::Gffir')tio n effJcti C ; _l..l.._."t:.St 1 ;_"or tho month of A u g ust 3)enC:.i nt;; a on?. •:t.oJosed r-.10: J.r:1<...:1t. rvrn.. That SO'I..1:'1.ds r09..SOi1abl c . COLOUEL BERRY: I a1ll vdllinc; to 'o t ! ifl. t . MR. BARR: T h ese s taJs }1C.V 0 to be t..!rmina ted. ,•i t h o r : i thout exemption. MR. TAYLOR: Doe s tho C ode Au t : .. o r i t y f':?ve nny 8m...:n-'; . ..:nts to :propose ? MR. MITTSNT E AL: W e shall 11f' . VG i f t:._.; P C Ccn t t l is '""6J sottl(.;; ment and also on o t11e r mat ters--o n t ll.; co s t .. orr.n.:lr> ,.., .d ):Cicc cro . .r!Jint: MR. ORE: It i s goi:..1 e t o _be abnol u to:!.;.r Lc c .. s;,!'l'Y Ro:1r t o furnish all d a t a requcst D d b;:.; t::.o C od; A ut:lOl ' i t y . MISS ROlffi: May I h8.v e t Jla t 0utline. I sent it t o .. r . Gl,..,ss but I will be g l a . d to s u b mit the ma. t .rif'.l. MR. OID;: You can deal '17it:l the Code on t1"t r'lJ.:.tt.:r . MR. B3RK.Q1:HTZ: M iss Roh r s t a trJs tL.:Jj .1<'"e 10t t..sed .. :nr a 'l')r,ntic.s since March 2 6 . MISS I did r .. o t .. tr. .. a t . sey ,7e h!:!Vt; no t had '1J •• for quite orr.c time. We raise d t11em to $ 1 2 , tiws e VIC d ie... T.Ve. MR. BA..'iR: h "iss R ol1:r vmuld not b.:: . roq_\.11 reG. t o P r any 9811
PAGE 513
-482MISS SCIDT:JJID::SJUviAJ:T: Are we giving 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 exemption should be granted her. I do not think that is the right ':!ay of doing it. Also, dp I understand tha. t in that '.re are :yermitting learners. MR. ORE: There are no Iiiss Rohr, will you follow the trade practice s of the Cod e ? MISS ROHR: Absolutely. MR. OR3: The hours? I! , MISS ROHR: Ab solutel;y. MR. ORE: You have not pa.id any code and you have not been :paying the wages, nor su:9plied the st2 .tistics. MR. TAYLOR: The only e xem1:Jtion 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 to see our .wat;es for the fall. If we could have a differential for the fall '-17e YTould not care about it for the S J?ring. MR .. MITT:::!iNTHAL: A lo.ss of $11,000 is not much in our industry. There is no one in the industry wh o took those losse s who was getting an unusDally high se.lary or not justified by their business. When they came under the blanket code they d.id not know what the difference was going to be in their cost. They did not allow '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 rapairs. And we knew it was to our interest to {;O out of business in the fall and manufacture only in the spring, but we hEJve gone ahead v!i th tented orclers 1;ve kne'IJ7 we cou.ld out in the spring. We have nothing in tl1e spring bece.use after we oribina te an idea we can eo ah....,ad n i th it. We wan t t . o stay uptil we can pay b ack our bank loan so that we will be ablo to stay • in business. •• " ' After instructing the Code Authority to issue labels to the Virginia Art Studios, and after awain outlininG the 0)lan to b e followed in this c ase, the hea1'ing wa s brought to a close by Mr. Ore. 9811
PAGE 514
--1:83'1. July 30 , 1034 TO: George 1. B erry , Division Awni FROM: Harr.y S. B erry, Administra tor SUBJ3CT: T e r mination ni Stay. By reas o n of the fact t}-1.a_t t ile Virgini.q, Art Stl.'.di0s , I c., Lynchburg, Virginia, :protesto 11 t he facts, I r ;corrr .end. tJ.1e stay be terminated forthwith in order t.1.at th; Code Aut.hori ty tLe industry t his sta.y has been act ' d u::'o:1 i n :cc_;-u.l a tn.nncr . T c Cod e Authori t J Directors, the I:ldustriel Jjj_-,-:..sory Joarc. :1nd t .. e IP-bo Ad vi so ry Board aE:;ree with d oci sian. I am, honever, r e co mmencli n (' in ?, se:1E nte clo"1"..1e:1t tn...'lt ::>n orde r for exenrotion bee:m C\lted in behalf o_ <..: '"L.;inie. -' rt St 11i0. which will t this com:_Jany to ")ay a n inimL.,_n 8 s lo.-"..S $l2 )L;r --L': instead o f the $ 1 4 per week 2.s provid.od for i:1 t ' ..; co c." c l."n ti 1 rue' t • me as the code can be r c op cncc: t o a scut::..crn diff. ... 1.ic if evidence sho'N S is n e c essarJ, w ill t;i..re t.1c Vir ini:J. Art St\.-, • .:;.io., t e relief they seek. Attachment 9811 rry ""..rry DJrJU. t S . Berry S . 3 'rr;r s tr_ tor
PAGE 515
-484:NATIOHAL A:Di.'L:ISTrtt_TION I D. c • To: Harry S. Berry, D e :)uty Administrator From:. L abor Advisory :Board Subject: Cod e of Fair Com o etition for the LADISS 1 HANDBAG I 1mUSTRY August 10, 19 3 4 We do not o f the order granting the Virginia Art Studios, Inc., Lynchburg, Vi r ginia , o . n exmn:ption from the provisions of Article IV, S ection 1, of' the Cod e o f FaiT for the LADIES 1 HAND:DAG. INDUSTRY. Tile mininn..1rn r a t e in the code is 35 per hour, or $14.00 per wee k . The yrOl )OSGd orcler v-.,rould. penni t 30, or a $2.00 p e r '\i'Jeelc, diffe rel1 tial. Tl1i s is out of line vri th the differential in industries which employ similar type of labor t practically all of. which inclucle a $1.00 diff e rential . LABOR ADV ISORY BOARD ( s) By ____ __ _ AHi v V m e 98 11
PAGE 516
-435Col. Harry S. :Berr;{, of 3, l ational R ecovery Ad.:nir..istr...,ti o • Your Peti tio n cr, tn0 irg rt Goo's Sb .... d.ios, I co cd, :Corporation organize d under the l a :s of t 1\3 t"' of 'ir i:-ia, r;d in the business cf m9.m.uacturing and Gllin., L::.>die s1 •o< t;.s, rt..:s t -fully re_)r esents: 1 . That it is Ol)Cr a ti:1g under t e Cod0 of ?.n ir Cou;c ti tirn 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 .s ti.L;::-eoi' ... la7.in....> to the minimum see lc, ar to ;/:.ic i it is o .r1. ti..... d r a.n ordt..r g Sen t . l , 1<23;. 2. T r.a t the date for t'1G cx: Jir::otion o:-..' s::>id c:Ar.;m_)tion orG.er, as petitio n e 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 8.f.'lenc:me:1ts to t his Code relating t o l Pbor sc1.lcs . 9 811 3. That it is norr ":-:::>t S "l C h :"'ril: .rill r..ot b e ald prior to Se'9tembe 1, 1934, f'.Ecl i 1 to 'J .. servrni e ::-<. !:tohr, ?rcsid. .. .mt of Virginia A r t Good .s Stu ios, I nco 1--r)ora t e d . Affi6.avi t o f Edmund 'ila l tuc1:. Affidavit of o. H . Tufts. That a copy of this nc t i t ion has b-.;311 of the attached C..ocl..,_T:lvr..ts to !10 Cod0 Industry, 247 :?ifth Ave., ... -m'T York. rCcd i n t..ori t:-/ , Ladiec1 : nd e
PAGE 517
-486 .... Wherefor e your P e titi o n e r r o snectfully -.J':: e.y s t lw. t e. order b e issued t h e of its Code y r ovisions relatin g t o labor, to such dat e as a mendme:1ts t o sai d Code p roviding for wage d i f f e r entia l f o r the s o " terri tory s h a .ll hav e been give n a hearing . Attest: / s/ :Bertie R . T h ornh ill S ecre t a r y . 9811 V IRGI H I A ART G-OODS INC. J3y / s/ WJaiili c E . Roh r Pres .
PAGE 518
-487Lei,;J.1 f . Ore ssi s te.nt Ac\.mL1i s tr:::: tor Commerc e :Oui ldL.1t_ ':iashington, D.C. Dee. r Mr. Or e : The Virbinia Art I1:..c . :::.esar .. 2 )cti tion or amendment to the Cocle of :!!'a i r t ion for t : .... :1.' H."..i, Industry by ad.d in-g to .. o f t : .. c CodJ, t! ... e 1'ollo.:111; c; tioj-: : ( a ) In the S t R t e s oi :orth , South Ca:-colina, G eor; i e . , Flo_i .. i , Lo Ale. bama . , T e:n.nGS'""'J8 8.!1' J:e: ..... , j • r•:> e for unskilled em:,lo,/oes s i::.ll OJ 1 : (b) The ;nil irnum 1"'9G0 for so:"J.i s:.lllcd cr;llOYr3C'S s: "lll be 3 7-} )Cr our. (c) L-e&.rn0rs mB.y b e errr--.lo: od. ... iod. o f T>.ot c; U.L. ten wee::s a t a ,..,r-.;e '.o.;.::, ')': that thG nur n"Jcr of S'J.cl: lc...,::;._;;r ,_ ..... ll .. o t "11 t ... k: exe c d 15 )er of L1o cf c •. .., Tl1e )etitio n .ras sunortGcl by t':cJ f ol.L o ..... ! ( a . ) Co)y of l G ttcr, ci..:-tod ,.. 0 , l'Y)t.l, .. 1 Ro".:c t :J. (b) Ramsey , :Business :::m:.0e r of t ' .. C . .t'"'.noe:c of C o . .1r.1G co 01 to J>nos C . .7ort •.. y , .S!'>ist::-;-,_t Da -ut: . .. l:.. i s li?.tion".l .Affid2.vhl. of :;:;. ::o:,::., .t"'l';Si ;i1t o:t "'i:i. i11i Goods Stuc.ios , I n c . .... -" (c) Aff idavit of Ec.r...w.1C. :-_1 tuc::. (d) o f 0 . H . Tufts. The Virt;inia Art Stc ios , I:.1c. tion was also sent to Col. H . S . V COJ' of its .ty ' .. i:1istr:.1to:r. CtlAfte r c a reful of stte::":t ..... li1!"'dc t: cc !)resented i n cl.o cuments, t:r ... e Col.c A-L,t.lOri t;y, .:'t : 1 \.it ... .-t 30, 1934 a t the Hotel hc.Al)in, votec to c'a:1: t .. 1 titiJ .. 01 t'. Art Goods Studios, for an to t ! _ :oct. i."! 1. ic:A t: c; tt 't: 9811
PAGE 519
,.-488(a) to be granted a differential in rates in favor of the southern territories. (b) to fix a minimum vmge for '"Jorkers at 37 per hour. (c) to oermi t learners for a l;eriod of ten y;eeks at a minimum wa.ge of 24 l)er hour, not to 15 ,Jer c ent of the entire number of employees. The Virginia. Art Goods Studios, Inc. in support of their ueti tion claim tha. t the manufacturers of Ladies' handbags in the northern states have s:;:illed labor who v iOrt: vli th a 11s;eecl •.-rhich ce . n be equalled oi'lly by equally s killed ex)eri enced Fifty of the LH1u stry i s loco . ted outsi.c1e the metro politan area of 1 evr York in nhich no }J.Gl:? is available, a.:1d the manufacturers obtain their vrorl:ers L1 the same mEt!1ner a.s C'l.oes the Virt;inia Art Goods StucHos, Inc. I n the metropoli te.n e .rea of in Hhich ex; erience d hel:;; is a v :.ti le.ble, the waseP )a.id s,:t.ch i s from tvJO to three time s r .1ore :.12id L 1 e :..:;,1ex.'!eri anced The Virginia Goods Stud.ios, I nc. claim that they a. r e l;ioneers in their locality. The records show tJ.1is firm hn . s been estaolisl1ed over ei:;:ht years, and that during the five yeHrs, l1ave enjo;)reG. a large volume of business in the industry, e J !T_Jloy i ne:; at t iin e s a s many e.s 168 '.rvorl-ers. These workers have all hacl som e by this time, a:;,1cl. are avail able mostly a t the minimum wa5e re.te •. The qnestio n v;rhether the labor in Lynchburg , Virg i nia ca:1 co m •1arc : :ith northe :rn ':ro:cl:ers in vohune i::-1 s 11eed of )roductiol::. is not d 8 t e rminD.bl e , .,i11ce the kind qua.li tJr of vvork vari e s i n eac h f actory , a:c1d l a c k of frequently the result of inefficiency i n fEJ.ctor: r n?.n&.l:.ements as has been clisclosed through investigation made i n other L1clu stries i n vrllich similar cle.ihls have been made. The sta t em8n t of tha Virsinia Art Goods Studios, Inc. that 11the practical o.nd inevitable result is t h0 . t the VirgL1ia Art Goods Studios, Inc. cannot successfully corrr: :)e t e with other 'Vvhose out:?ut :ner Ca_;:Ji te. of el112.Jloyees is so ;rru.ch t; reat er"--this merely e:;nresses their ouinion. Tl1e loss sustained by the Virg i n i::>. Art Goods Studios, Inc. during the year 1933 may h ave 'been due to fl. C.ozen or more causes, anc1. to have this Company claim tha t such losse s resulted. from increesed le.-bor costs, is merely e-::-.:? ress inE:; a COi.lV8i.1iei.'l t co:;,1cl Any in l a .'bor costs might hav e bee n included in the co s t.; of or they h.::,.ve offse1 this increase by taking the cliffere:;.1c e out of the v e . lue of na. t eriG.ls," if they fail to Cl.o so, they ce.1not justl,r attribute it to incree.sed le.oor costs. 9811
PAGE 520
-489J rom figures furnis' :;d o:r t. e o:. t11 ir sq,l s 1es costs, it rrouL. near that t:1ey ;:: ro -t' -'-'i:t P s fe and y4ofit. rho test of efficiency i n ... ad ... b: t.:'-'i:i..' :::.odu t en is not b B Sd on f::;_ct, it i s me re1;y '_is L1r i 1 o io: . . The st::.te;:-lCnt tlu. o: rr, sol ' . '-L r )ric e th2.n the )roducts of fe.ctor}es is r..::> '..1.St"'inccl. , ::tic"L1 since t!; i s C orrr'Je.n' ?. .niC}.le J.i._L; of : -=-n c.i :ferent from t r .:; manuf?ct by ct fir:-1r. i::. . . s crv, "" they ,re: rotected b , .. t: e:t hqve to. The Art Gooc.s (o ::> c...,oo 1 volu .. c of b 1 in ss ;nc they a.re ted fina;.1cic.l1" as o: c of t:_.; cut st:'.:1C:. {; s in t: c nc'.us trJ. It is not n e c essary for tLe 0i: iP . .hrt Goocs Stuc"ios, I:1c . tc )Otain 1m1or ;,-.;:;e r?.tes L1 t o con vt .... 'fit:. i t, v 1ortJ.1 er;.1 t erri tory, e.nd b1c fr. .ct t!rt 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 factorie s iT'! tJ.1e j nCJ.ustry t o sufl.'er 1e.r,:_er 10SSI.iS , <.11 d.UL to t .. O f ct they a . r e tryin.:; to t;ive too v-:.J.u-.:;s 2.t '):...ic..;s. The rec;r>.mono. the . -:-.rl-e_ s CB.i'!.:1ot b ;io:,1 of a seois .d1lcd fJ,_,c c to ?.11o 1 :--. v1ae;c r". te of :371 ; for ccll:: c1.crcd since tl'"'rc is ro 1 .. 1. .13 Code. The r oqu,;st t o ?.mend tl0 Code to err1it J.l.i::lrtw::.s is c.l.c;tic b/ t_ e Autho: :ci ty 8.t t!1e -1resent tine, a:,1r' U"-1til Code s: 9ll bJ cu. en "cd y ::t[,re ement vvi th Adlninistrator to Jrovi '.c 1e8.:...ne1 s for t: J du.stry. The Vir,5ini2. G-oods Stuc.'..ios, :;:nc . h•r -Jce:1 OJ •r. U!Ka ta:r s i n c e tile effective c>t d o:;: CoJ0, 1cd4. . This :-t::> ;.:-)ires Sc ) ter.lbe 1 lS34. fJ..iho Cocie .Art1 ori ty ns t t. c -' ontinua:nce of their st2y e:ro yor..d 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 .ic h the;-/ m::i.,_ht ho.ve suo:-jitte ... : t,::-ir >cL,ltor . . __ the:r i<>ih.: ) do so until Au gust 27, 1 9..,4 t:1..;:' no11 rcC1uJc-t T\., t c .emotion snou1c.'. bv e:;de:._J.ou. .to such ("t<' ";tici '-'ted 3Jrin.:::; s l n.ve bo'Jn. 1w 1d., ''UO tl;e . .;-:-. :!rc1 c:1ts dis of. COJ:: _;_ liT .:C-: l"i L'J)I:;:}S I ;: :;:_ :u s ... ! .n.. . .itt ! t: q 1 :Jil'ector
PAGE 521
-::-490-.: c T.d3 V IRG AR'l GOODS STUD I OS, E T C • 0 p y Colonel R oJert Lee Lyn c h b u r g , Virgini a D c:?uty Ad..11ll:i strator f o r L:du stry VI? D. C. Doar Colone l Loa: 8 , 1935 I am i.1ot s ure that y o u a r e the ::ierso:;. I shoul d be ;:i t ine:; to, but since you are the one vrh o m I savv whe n I c ume to Wash L 1c_:-ton lPst sur.:nner, ancl tho one wh o arn:mt;od the conferenc e •:Vi t h Col. Ore 2 .:10. sev en' 1 others, I am t his to you, and ask i f some one els e ' i s tho one for m e to cornr.mnice t e Y:i t } 1 tha t y o u. !.JEtS, t h i s on to him . You will r emembe r tha. t a t tl:e tim e I C81l1G to '.7es::i nt;ton v:e w ere asking for a m i nim.un -.7a.ge of $ 1-::.oo, '.'it h a:1 _ _ erio d of t h ree m o n ths durin t; time we snouJ.d be 2 llo'-rec ' . t o :Je J o f t!.1e minimum. We hc>. d bean )ay ir.c; o n t h i n b:ts is L 1 rcia:1.c:e v ri 'ch the ?resident 1 s ngr oe mont that r ; e s houl d b e _')erm i ttec.l t o d e:,?.rt fro m Coc.e requiromo:.1ts if w e tested a n y o f these rc-CJ_u i rGr. .ents cefore a c erta L 1 dat e (w} ich ,,_.e did) until suc h time 0 . s a . mee tinG should be holC. to determine t h o justice o f ou:.. A t the nee tine you ?.l.rrauged i n it v.as t entative l y 8.(_rae d that we o o a::..l o , . -red a w:1ge of $12.00, with no ti c e yed.o d , Yii t:: tl-1e
PAGE 522
wa need ::>t 80,; of $13.00, until suc11 tim'"' a!: tl vY a r..., n.'ul to co v10rk Gffici.__ntly . 'i " e b.2V0 tria d to li V G u:> to :hat e e......,r ..... d to do 1 , _l ' .'t.: "..,ul t:1at wG v-,r2nt t o me.l..:a our nosition in t:r i.a rr..etvc r ch.qr . a r y truly :'ours, TH:6 VIRGL:I A _ _?.T GOODS STU:JIOS , I: C . 1GR/A 9811
PAGE 523
Mrs . Mamie !B. Rohr, ?:resident -492-The Virginia Art Goods Studio, Inc. Lynchburg, Virginia. Dear Ivirs. Rohr: March ll, 1935 Your letter of hl)arch 8th, ac1d.ressed to Col. Robert Lea, has been referred to me as the Le.dics 1 Hai1dba [: Code is at present under my direction . Tilis code provides for a mJ.nJ.ml.un 1frago of $14.00 :9e r week, and the r e is no provisio!1 for learners ()r apprentices. Any a gree m ent to the contrary v rould not be valid. Eo one without first obtaining an 0xem ption hP. s a right to v :ork any employee other than in accordance '::i the of t:1e CoG.e. I f yo1..1.. feel that the cocie arc working a i n your i n rtancc, 'Hill you ldnclly w r i tc askiJ1g that you be granted an exemption. You shoul d state tbe number of whom you intend e.s a n d fol , vJl'L.qt of time -also the a mount the. t you L1 tenc1 7ayint; them duril1: tho apprentice p eriod. Please state the total nu.-11ber of your emJloyees, and any other facts v rhich you think are tcward giving force to your contentions. Your a:.J)lication for Gxmnption vrill be put the chanilcls, and you ma;y rest assured it will be given every c onsideration. R 2137 3 9811 Very truly yours, Walter :Mangum Deputy Administrator Textile Division
PAGE 524
-490-Till VIRGI H I Al.i.T GOODS STulHOS , I 1306-1310 Street LYNC!--:J3URG , I G I : IA March 1 2 , 19:35 . Mr. Vial t o r Mangum D8puty Adm inistrator Textile Division National Recovery Administration Uas hington, D. C. Dear Mr. IVJan gum : We are just in rccci n t of your l ette r of NiarcJ. 11 t: i n ems •or to ours of rv;arc h 8th addressed to Col. Robert L e a . First, in regard t o tne s e cond are well aware o i wha t the Coc e "prcvices11• were made without our sanction 2 s ;vc h a v e in to Washin gton s e t forth. of your letter, e These nrovisions innume rable l etters In the very beginning the ?resident ounccd tl1e.t i f provisions 0f the Cod e worked a :b.Elrdsh ip, a f irrn E-d a right to a stay provided said firm entered a. )rotcst before a c erta i n cat o , said stay t 1 be effective until such ti.ne fl.s a r::ectinu slwJJ.d be held and a c tion tal.;;:en in rc.;ard to the points ae:.ainst w:1ich protest was entered. It seems quite sur_pr1.s1ng to us thB-t before ansVlcring our l ette r you had not looked up t :1e correspondence we bad with ERA i n rcc;ard t o this matte r . You stf>..t c i n t "je t hirr ',)a r a c raDl of your l ette r that i f we feel the Cocl.c p rovisions arc ; •or!:in--> a hardshi p that we should write askint; to be t;,ranted. an I t r;ould tainly seem that something of all the a gitati on 1f t'ds question v-ould have come to your ear s . As we w r o t e in our letter of :arch 8 n , .qc tion w&.s to have been taken on c-1.s e b y th. .. first of Sentember, but no action was ever tal:en vvc lm::>w of. ile wrote el bor:.te eA"TJlan'l. tions, giving i n detail our grievances, e..nd stt>ting Hn:r it :B.s absolutely necessarJ l if we a r e to st-9.y i n business th?.t \-;e be !1.llo 1ed t most >. $ 1 2 .00 m inimu.!11 wage fl.nd an ap!)rentice 71cr iod of 80,J of "iUUlount. P erlmps it wou l d be w ell for you to look L 1 t : 0 files and learn what the situation i s . We wish to say once more tfr'l.t conside r \C arc still allov.cd t he stay which the President ngrced •e mi6ht have, sin.c no has been taken on our nrotest. /e arc, tl1e o.Jfor .... , D?Jlng a limited n umbe r of beginners unfamiliar with the handbag industry 60 !'. week while they are tra ining. As soon as our epplice..tion for a n exemption, ... iled last A 5t, is :put throu g h llregular channclstr and a do.Jcision i s \7e sh'"'..ll be glad to :Pave a reuort on it. MJ,Rj .A 9811 Very truly ou s , T lm iiA ART P e r ( sie ned) smun OS, r.:c. RO ffi, Pres.
PAGE 525
-494 -March 18, 1935 Mrs. Ma.mie E. Rohr The Virginia Art Goods Studios, Inc. Lynchburg, Dear Mrs. Rohr: Your letter of March 12th has bee n received. You arc quite right in stating that the stay which was granted is still in effect. The C ode Aut huri t y recently inf orrnecl me that they are an ap:9lica tiun for a termination of t he s ta;y. They feel that it is unfair t o other members of the 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 matter be brought un for hearing , e.nd I would like t o know if you a r e flgreeable to havinG an informa.l one rathe r than going to the expense of having a foi'Il12.1 Public Hearing. If this meets with your ap)rov al, I can then s e t a date which will b e mutually agreeable, as I understand their fo rmal request will probably arrive her e tomorrow . For your information, I hav e only recently te.ken over this sectiun and, therefore , have no knJwledge of the matters which happened l ast year, and unfortunately, 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 D eputy Administrator Textile Division
PAGE 526
Col. Walter Mangum Deput y Administra t o r Commerce Bldg., l'las hing ton, D . C. Dear Col. Man gum : -495COD3 AUTHORITY LADIE I hA 347 ifth Avenue YO:FtK The Cod e Authority1at a meeting h eld on Ma.rc n 7 , 1935 :yassed t.1e following r o s olution: RESOLVED, the Code Directors b e and horeb directed to request the Aami nistrati:::m to terminate the exco:9tio;.1 to the minimum wa ra to g:ra-11tcd t o the Virginia Art Goods Stud ios, of Lynclburg, Virginia on August l, 1934. Since t his exception vBs granted to the Virginiq Art Goods Studios, the Code Authority has request e d a of times to it terminat ed. The Code Authority has been sreatly embarrassed by havinc; the Virginia Art Goods Stud ios and the Pat Bat:;, Inc., of .:.richmon d , a . the only members o f the industry an 8XCeption to tho code wages, since n umerous r equests from other meQbcrs of the inaustry for the same exception, to the code have been refused i ; 1 every case. Othe r memb ers of the industry found viole.ting t ho age provision o f the code , have attempte d to justify tneir rignt to d so by referring t o the g r ated the Virg i n i!=t Art Goods Studios. 1'.1e continuation of this stqy is r ogo.rdod by he rerr.ainder of the l ndustry as being discriminatory. The Code Authority herewl th requests ti1e . t thi inequality in the industry sh>.11 be. terminated a t or..ce by t e Administrator, and that if n e cessary, a h cari n s be held immediately for thqt The Cod e Authority also a sks tne..t t ho exception granted to t'1e Pat Ba g , Inc. shall be terminated, and that i f foU11d noccss ry, they should b e included in e. hoarint;; tlli " t rna;)' be c a lled for this purpose . 9811 Very truly yours, CODE AUTnORITY LADIES 1 HAl :9BAG 1 : -;; ST:}Y ( s) A . CODE :9IRJCIJ:10R
PAGE 527
-496• i: arch 25, 1935 l v ir. A. h1itte:nth::>.l, Cod e Director C0de A-u.thori t y , L ao.ies' Handb e . g Indu s try 047 Fifth Av enuG l Tew Yorl;:, Y. Dear Mr. l',ii t ten th-3.1: I h2ye your lette r o f Harch 1 9th v1i th :ceference to the Stay D..ndor vrhich the Virt;L1i a Goods Studios are ting. Undo;;r date 'Jf Me.rc h 18th I ':;rote '!-, irs. Rohr e . s :9e r e.ttached copy. I have ha.cl no reply yet but trust one \7ill be forthcomi!.1g within the next d a .y or You may rest assure d that it is my de sire to cleB.r u:o this situation a s soon a s it is to d d so. D:2jH : sk En c. ( l) Co:.JY of l ette r V ery truly yours, . 1ii8.l ter h'iant;'UITI Deput y Admi nistrator Textile Jivision
PAGE 528
Col . Walte r Mangum Depu t y Adminis t rator Commerce Building , Washington, D . Co Dear M angum: -497' CO iE AUT_-RI'I Y LADIES 1 HANDBAG I DUS'IRY 347 Fi:' h Ave . JEW YO:tl<: arcl 27 , 1935 I am in r e c e ipt of your letter of arch 25 in reference o the mat t e r of the Virginia Art Goods/Studios. I c ertainly appr e ciate your efforts to bring this rna ter to a satisfactory solutiono Any conference or hearing thnt you may call for this purpose, I shall b e t:;lad o a end . .PJ/J.:AS 9 811 f ery truly ours, ( signecl ) A . I TTE:fiH.AL A . Mit enthal Code Director Ladies1 Handbag Indus ry
PAGE 529
-498 THE VIRGINIA ART GOODS STUDIOS, I N C. 1306-10 Church Street Col. Walter Mangum Deput y Administrator Textile Division LYN CI-'J3UH.G, VIRGil IA National Recovery AQministration Washington, D.C. Dear Col. Mangum: Apr. 20, 1935 R ecently 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 _ op erate with a profit and to turn out the necessary amount of goods in t he time required. In response to this appeal, Mr. Iv1ax Eerkow i tz made a trip down to L yn chburg to see us, and made a very ca .reful study of our problem s in the limited time he could be with us. We wan t to say that we found Mr. 13orl:owitz most cooperative, and v ery much i n t e rested in our situation. He realized that we were in a very serio u s situation a .:ncl m-?.dc suggestions which w e felt were very con structive , and which we should like very much to try to c arry out. We believe as he does that if w e could follow his suggestions we woul d be able to our business on a paying b asis, and not find it necessary to a s k the Code for exem{1tions from the regul a r requirements. We want very muc h to do this, and w e want to be in a position to pay our employees, who are very loyal and cooperative, just as much as If Mr. Berkowitz were in a position to stay with us for several days we believe he would be of inestimable v alue in helping us solve our problems. Do you think could be spared to us for a while? We realize that this is asking quite a g ood de a l --that he is a very busy man and that in his position he a great many things to look after --but if he co uld be lent to us for 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 lik e to have him come as quickly as he c onveniently can. Kindly let us hear from you. Sincerely yours, (signed) 11/iAl.iiE E. ROHR, Pres. THE VIRGINIA ART GOODS STUDIOS, I NC. NiER/a 9811
PAGE 530
Col o n e l Wal t o r Wu:mgi.ll'Il Daputy Administra t r Commerc e Wash ington; D. Dear Colo n el: -CODE AUTtiORJf.lY LA.DIES 1 1-tAl:D:i3AG I DUSTF..Y 347 F ift.1 Avenue . Z'il YORK . .. April 1935 R o : Vir;ir.i a A4t Goods Studios, Inc. 1 306 1310 C urc1 S root Lynchbur g , ir&inia I have rna. d e a c a r e f'.ll in:es t igation of tl-..a co1 d i tions ir. he fac tory of tho above fi'i n t h tC:tl J ':=>vo boon wo k i n g cvertime from A pril first 0! 1 , avo!'agin& frcrn 2} to 24 hours per person. I hav e mad.c arrangement s v:i th them to )a./ time a::1d a hal f for tnis overtime work which they h3.ve ar:;rood to do . A lis t of tho a n d tho amounts Jill be i n our office within the n o:t few day s . Miss Rol1r, pre s i d ent of f i rm , stated to me she had r e c e ived an e x e m p t ion f roEl you a'Jy rentices. "O fc:i l to find in our file s any corre s pcndencc , or copies of some , 7itn reference to t his state m e nt. The a t t a c h o d repo _ t give s the n umbe r of wn re em ployed b e low t h e CodE:: r Linirnum fro m D ecem b e r 1 9 , Li34 to da to. We wilJ ap:preciate it i f you !ill send us C0'1ios of any corre spendenc e that you nJay have } ad w ith thi s f inn in order that we may straight e n the s e rr.attors out . Frrin hat i!iiss Rohr :1as p remise d the write r , she w ill c me defi:1 toly undor all the "T)ro vis i ons o f our Code. Ve r y trul y yours, CODE AUTHORITY LADIES I EAl DE G I DUSTRY 1 a:;.;: Berke ;;i tz Code D irector Encl --Lis t s ho wing overtime a n d payroll viol ation 9811 ' r
PAGE 531
-500Special Inve.stig a tion Tile investi .;ation discloses tha fact tw.t this firm has two factories -one an annex w hich employs abo t 2 0 workers. Workers were employed at rn. t e s b elov 1 the minimum wag e as follows: Date No. emplo;y:ed at Ho. e rrmloy ed. a t . lJo. Hoine. Tot8 . l No. of . . 30r/; -ocr hour 1Jer hour workers . Errro1o;yees . . . . . . . 12-19-34' :. ''39 4 93 .. ' 12-25-34 43 1-9 35 39 1-23 35 42 12 .... 35 56 2-20-35 61 ' 110 3-6 ' 35 55 . 14 120 4-3 35 60 g , 128 4-17-35 6 1 25 31 183 Annex: 4-17 6 8 18 2 Overtime 4-1-35 from hours to 24 hours per person 4 3 35 Overtime was registered on individual cards. No entry was m8. de in the book. Th e overtime amounted to about $300 tim e • .. Me.x :Berkowitz mb s 9811
PAGE 532
_..\---•il Mr. 1vhx :Ber:-;:owitz Coue A uthority Ladi e s 1 He.ncl.be..g I ndus"'.:.ry 347 Fifth Avenue New York , Y. Dea r .ir. Berko,.,i t z : I aw attachi nr; h e r eto copy of letter just r e ceived from Iv:rs • .rtol1r a nC::. I11J r epl;l ; I l :J.lO' ' you :ill 6 o e v Jrythi:;.gyou can to compl y with t h e reques.t in tl1e f i t a l parn.l;r:ri)h of her l etter. I te als o that you are not t17 ins 8.nd ca:n o n l y do 2-certe ,il of the work v ; hici.1 ;yo doing . DEH: s k I!hc. ( 2 ) of L etters 9811 V er-.r truly O cn A . Assi s tant :Je uuty Ac1JJinistrator ':!:'e:;dilc Divisi01
PAGE 533
-502-April 24, 1935 Mrs. W1ami e Rohr, -resident, Virginia Art Good s Studios, Inc. 1306-1310 Church Street Virginia Dear Mrs. Rohr: Vle :b.ave your lette r o f April 20th, and a r e very to note that the recent trip made to your plant b y Mr. Berkowitz was of such g reat benefit. You, a s a handbag mauufacturer, are most fortunute in having such men as 1 vir. Kerk o witz a:n d Mr. liittenthal 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 a m today writing l.lr. Berkowitz urging nim to comply w i tll yol.1. r r equest outlined in the last :)aragraph of your letter. I knm; that he will be glad to d o so if it is at alL uossible . DEH: sk 9811 Very truly your s Owen A. Locke Assistant Administrator Textile Division
PAGE 534
EXIIIBI'lj B 1 ----------r. Pr"ctice Com)1nL ts Cor:uni ttec 9811
PAGE 535
-504.-E XliiBIT B-1 CODE A UTHORITY L.AJJIES1 IIAHDBAG Il' .. .JUSTRY 3 0 3 FI F1I'H AVENUE NEW YORK April J l , 1934 Dr. Errl Dern HoHr>_rd D el)U t y Ac"Jnin i Dej_)C'.rhn en t o f C ornuerce Bldg . Wr-_chinc;ton, D. C. Der. r Sir: We herewith present resolutio n prs sed b y the Code At.1..thori ty r . t r . meeting hell!. C'.t the Hote l McAlpin, April ll, 19341 requesting ruthority t o hr.nd.le Tr"-de PrC1.Cti ce ts in the firs t i n s t rnceca V l e C'. r e r equesting thr'. t t his be grnnted so n.s to j_)enni t t h e Code A u .. thori ty to expedite the h r 'i1dling o f t hese compL' i n ts i n v olvi n g f r . i r t rt'.d e 1 r r cti ce violr .tions under the C o d e for the ind .ustry. Al. i : AS / s / 9011 V ery truly yours, CODE A\.!THORITY 1 HANDBAG IliD USTRY A . M I TTEH'I'HAL A. Coo.e Dire eta r
PAGE 536
C J D:E' N;:::IO_ .I'!Y L;._rr:...s 1 FJuG3 ... L'-1'SL1Y l .... . B !!: r r 1 i... c r:. : 1 r '' rd. .4/r.li iatr.tor c!' Cctn. .r ... D . C . D e . ""r SL: A_ :i 1 ll, l:,. At < I of t }:c .A::thol'i for the L E:.:'.cb :: It.c t!:e '.otc1 A Jlil1l, tJ.J.L . resoLltion 1/'S C..i PS t 'J.-38Cd: 11Ee it e1'-.t tLe Cr;c.c A '..1.tllcl'i sl: tha tion r i ty to t'1e ::i'"'ir • ( c cti cc t:lC :::irst inst-11 V rry tr-.ly rs, p._ :: o_,..I TI L.dlJI :;s • HJ:..:. _ .:...;,.l! E ;s'IR .A...i : A / s / A . ; . I ry: ; _:ili ;,, !.it:c:1thl Co .e Di:cct::>r .. I l'lt-reur certif tLrt t c o v c tL .... s.:cr b ,; the Cocc ... ,""' , .. .., <_L 1.}: it"'U8, "(;CO:.CCl of the t .... '""11' .. ;;-n:b-::; L1u s t IriA-. Coce Autr!ori tv L:--W.c.J1 ...... • L1LUStr' S8ll
PAGE 537
-506-LrtA ROOl: 4039 LEO/ sh l1:0:._,R 27 1934 A k i C01:G D I IU.:CTOR LADIDS I COD:G AUTHORITY 34 7 :in FTII A NJ!,\if YO:::li( CITY YOUR TMDE l)RAC/ri CE COr.,iPLAI: N T S CQl..ILI WAS ..A.PPROVED TODAY LLI G11 :;::; ORE ASSI ST.AlJT D::..-Pt:TY ADl\ii l l STRATOR TRAD:S COl.iPL.AI!t:: s . COI.LI TTZE OI\GAFI Z AI'I 01\ rom'L -AT-r -OCTo--:J 0 ig"vl .:.1 -'-._\. J , J. Present: ttee i•lembers LGGGrs . -1h1. C . IIy Jurstein, Lrure;.1ce l.io ss Adrnini s tr t ion . • ember 0 . Yi. Pe . ...,_ ::.son CoL-;_e Directors A . h i tteuth'"'l, Berl':oHi t z S e cretrry -M o S . M:c. Lli tte:.1 thr.l O)enec the r.1e e tint; C'nc'. the mrpose f'nd the norl: of the Com!ni t tee. Aaministrr .tion l.1ember, 0 . W . Pe<'.rs0n, e:f:::-plrineC. the o.uties _ of the members of the Cornmittee, nne-;_ the necessi of keepin;; correct nnd careful records of Pll c r . ses broucht before the corrrni ttee for r..ction. Cod.e D i r ector, Mo...;r Berkowitz , g[' ,ve P, brief outlL1e of some of the o.ifficul tier.; connected th the of the l rbor provisions of the Code t:LS well r..s the trrcle _ )rr.ctice Executi7e Secret['r;y-, hi. S. i.osessop, str . ted t:1rt the most importo.nt work of the conn,1i ttee wou.lcl b e to use mor?.l sur.sion in such c r>ses thc t the Exec-c.ti ve Cemrai ttee o f the C od.e Authority •iere ilo t .n.ble to rC::.just themselves, <'.nG. it w:'s no t the intelnion of the 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 Court vrhen all nethoci.s fnil f o r their There nc.s pj.1Ct questions by uem'oers of the Cor.nni ttee . 9811
PAGE 538
-507-Upon mo tio::, uectL1r r -cjournec ." t 9 : 00 P . i : . / s / 1-:io ses son e Ac";ai:istl':->,tive Orc'..er 032-17 pert"inL: t o AJ.J_novrl of Plrn Officirlly C oJ.11:1ittee C.1e T:cr 6 .e Prrctice Cornp1-'L1ts for t b.e L rc.ies Hc.nd r-.c; -: r--s si . ;:ae(_ Sept. 27, 1934. Tl1i , r 1 l. : 1 co:t:.sti tutes ym:.r of:E'ici..-1 notif i cc>tion. / s / 9811 IJ. rr . C oL.e .h.ssi s k nt, TeAtile G . R . D .
PAGE 539
i'o r the CODE O:E' I J..l :R COi . . 'l'ION for the ARTICLE .L: OF ' l ... -AL:L FR_Li_C':CICi, COl.iPLAilT'l'S CO!U.iiTTEE r'.) The Cocce At,_tho:city sh< J.l ,--TrC'cJ.e Prr-ctice Cor:1 . .1i ttec. Sr' . i C . C m.1I .. i ttee sl1:.ll be F'.p)oi::lted by the C o0.e At..l.tbo::ci tJ of the 1:-c.ies' IrJc ustr;)l" . S.::.ic1_ Comui ttee sh['.ll <'_)_._J 0Ll'c ,"n o f fice field. str..ff tor the effective perfon:2..11Ce c f 2. t s Cuties, u.nclcr Code. Committee shr.ll also C:: • .P .. '0 L1 t :-. l e._," l ; , _ J _vi ser r nd t i v c Se ere tr :cy, ,-•r.o Il<'.y devote part of ::is tii.1e t o C oe.e Ao.tl:ori ty dutieG , the11 tl10se of the Conu-:1i ttee. The C::>umi ttee shC'.ll be so co:r.:,.sti tuted <'S to represent insofrr C'S . ' Y<"'.ctic:-b:e, the cliffe:r.ent ;rou1J s <"'Jld L1terests of the In-C:::. ... stry . It shrll. e enow;h to iU...'1Cti o n ef:::ectively, Fnd its members sllo.ll be free to t"i v e necoss,"1.r'i th1e to the no rk of the u tl Co;.li!1i ttee. The C m ,;mi ttee shl' l l m<"'ke full use of :ll <'V<.il,..,_ble E'.nd suitC'ble of locrl in the InC..ustry. .Al..,_ Ah;tini strC'ti on iAember-of the Code Authority shr..ll be e>. member of t" 1is Cot Ui t tee. He slwll :l,"'V e no vote, but shC'll hr..ve ['. veto, -::ubject to n .vievv by the liJ:-tiqnrl IrlcustriE'J. Recovery BoC'rd. No partJ intCj_'cstec i n r' cr se shr.ll sit on this C om;nittee. The remn.inirlg members cf t:!.: e Co; ;u.ti ttee shr'.ll elect rn :dequr>.te number of me1:1b er s to .. 1,...,kc 1 -t,l <'-rULn. b) 'ih e NC'.tio:t1rl Prct::.ce CoDj)l .... ints Com-:1ittee shell elect <. C LC'i:t 'l!lC'. n f:.:oo i tJ own umi1-;.;er'.;hip rnc\. 3hr-1l f i x the time of r:-:1( meetin?;s, ond. the m2..m1er such meetings be c;-:;.lec ' c ono.uctec. . The E:i-eCiJ.tive Sec ... e t rry of the C o1mni ctec s:nr'll w['l:e " report C'. t !"ll meetings the:ceof, of the cpses hC'ndl e(. oy s in the intervr'l between meetinc;s, tosether with" st..teuent the (ispositio:.l of rll cnses close6 . • Sectio n 2 : I\.:.1c'cions o f N , ...,tioil< l Tr!"'c' . e Prc..,ctice Cm:11lt'ints Cm1rr.1i ttee <. ) Trr'<:'ce Fr:-ct:ce Conmi ttee, throu:;h (_i io:' C l ('llC'1 SUO-C . i ViS i 0!1( l COL1l1i t tees, ShC'll };p_ve juris C:ictio:i:.. over ,:.11 complC'i:r.ts viol
PAGE 540
.:.>rovi• _c,_ " . C'"lt.l by 0 tor ,-,lle_ ;in, tl1n t C'n i s violrtL1_ : < . lroo:c :):.:-Jvisio.1 of Lt.(. CoC.e, mr;; bE: lYn l lec1 iJy the 1 :--'Jor Co:.!l. ilits COJ:h.littee, if < ; l ee: . hFs Ler lt b; S:::>e Cot Jlli t t .ec in L1e con t _ uct i tc l. Pro ;o"c to t:le ,..., C'ncl of to Go(e, n , ic: nill fpcilitrte com)lirnce activities; 2 . i:<:e recoL.c! enc .. "tions t o tl: e ':' J :cop:c i::. t e for --. : 11:: (.;:icc >t::.ons; 3 . .... J.1(ltions e"'q)os i tio11s o f 1Jrovisio11s of the Co_-e <'G uo rec_ui re; C _ 0y tl1 o C"'ses be:Lore t1le1:1 for 1:is Jos n l or 1iJhere S':.Cl: e:::::_:.ll' l1['tio1.S rl1l c e_.;:.•osi tions rre Jertinent to their HOrk. c) ':L'he Col!JLlitte e sl1rll lY.ve.:t;li-,e resp or!.sibility R..YJ.d Lh.J_t y of ins trnctio:: tio n oi 1crsons subject t o t : :ei r . jusricii ctions, tde:t1t o f comyltLltc; of n o n cm.mli<'nce L1 t :1e flrst ins t r -nce; rnu the :cent".i tio n of the r e_tJOrts to the <'P )ro_;:;ri:->.te 2.c;ency in C".ses vrilere it 1ltS beel1 i111 •JOSSi Ol e t o S 8Cl1Y8 C.) IJ:lhe C 01:ndttee .Jr. . y estC'.blish civision<'l P.nc1 s ulJ c : . i v isiolYl Tr,C:.e Pr<:.ctice Co i , pl"iEts Cor..ti.Jittees for S_:_)ecifieC. territories ?l1d. purposes. e) Co.:Jni ttec sl1C'll issu e L:tstructio:a. c.nd ree;-ul 1 tions, cle<.rl;y l1.6f i1J L1: it;:. rules to the (ivi>ionc-:.1 e ncl. s uiJ -ciivisionr l co.rrnitte;s, 2.nC. i s er,1po"J'ercrl to require re!)orts , so tlyt it m,, y be fully rC.viss( of the o f trrci.s conPJli<'nce ,.,ork 1.mde r the CoC:, e of :::'ril" CoDlJeti tlon-'for the LNLies1 Inc.1ustry. f) Cocm i ttee shC'll ve full chC'.r2;e under the CoG.e Authorit:" o::: tl' ['c' . e conmlir-nce r .ctivi tie-::, shr.ll (irectly s uperc i::;e .:.1c. co ___ trol rl2.. c-11( S,,;._iJ-.divisio"1:.l Trccle Prrctice C oit1ph '.i:.1t;: Cm:1.1i ttees estc--oli .;J-:et1 hereunci.c:: • . r.J intere: tee:'. }JPrty to [. Cur1J):;_t"'' iT!t 3hC'll 110t be ttecl to serve 2-r: r.. i te .6oe;r of the C01,1r.1i ttee he, rin_; r;uc: .. comlJlC'.int . Sectio n 3 : :lhvisioric-1 , nC.. Suo -Divisionr>.l Trf'..de Prc=>.ctice Co1 n ,1i t tee::, ''.) I::.; tL"' tiol of such ( _ivision<'. l c::.nC'c s-co -c.ivi:-3iOllrl co:J1.1i tte::;,_ , evcY7 eff'o'rt r;hc .ll be m c . Le to secure repTesentptio n ;:-r )rpcticc-ule, of the C::.ifferent r1.nc1 intere;;ts in the L1C.ustr;;, <.ill:. re. JresentC'tion o f the JLlblic interest in C1 m rnner sbJil<'.:c to t h<.t .:.c:1ievec,_ thrO'Lt.:h ['l)Jointi1en t of "11 ."uninistro.tion > member to t:1 c CoC:e Authori t:; itself. b) l..Jivi iowl : c :.;uoc . . ivi::;lonr1 '.i::.,-cl.e Comp1Flints Cormnitte.ss :;h;.-,11 elect." C:n,..-i:ti -:c::..l i'ro:1 t ll-il o n J.tc : ; luershij; , ('_nd s1(uject co tl1e [ lJ>rov.rl of Fr--.c,'cice CO!,l.:_Jl'l_ints 9811
PAGE 541
-510-Comn i ttee , shall a do 1 t rules of l)rocedure and by-la11s. Said by-lans and rules shall. provide f o r :;eriodic meeting s of the Committees at a p l ace conveniently located, so as to give persons having business uith such COiilL i ttees, reasonable opportunity for hearing , The Executive Secreta r y of such cor., : . l i t t e e s shall report at all meetings thereof e. sum mary of the cases h::mdled by the staff in intervals between meetings, together with a stateraent i ndicatin g the G.is position of which have been closed.. c) Divisional end Sub-Divisional Trade Practice Complaints Committees shall submit to the N ational Trade Practice Complaints Cownit tee \ reel:ly reports of all cases, and the dis)osition thereof, arising before the divisional and sub-divisional Trade Practice Qomplaints Cpmni tte -es. Section 4: of Divisio n a l and Sub-Divisional Trade .,. _._, ... ... ,. .. . . ..._-.. Practice Comp a) All Divisional and Sub-Divisional Trade Practice Complaints Committees hereu...'1der organized silP,ll have jurisdiction over all com plc:dnts alleging violation of all provision s of t h e Code, subject to the approval of the ional Tre ,de Practice Complaints Committee, excep t Articles III, IV, and V of the Code, refer respectively to: 1. hours of l abor 2. minimum wag e s 3. labor provisions provided that a com plain t by a com petitor alleging that an employer is violating a labor ; 1rovision of the Code,. may be handled by the La-bor ComD l aints ttee if such has been orgardzed. . . b) In the conduct of their '.7ork, such clivisional and sub-divisional Trade Practice Complaints Com11ittees may: 1. Propose t o t h e a ppropfiate a gencies, modifications of and amendments to the Code, which will f Rcilitate com pliance activities; 2. Ma.l.ce reco11 neadations to the ap:propriate a gencies for exceptions and exem ptions; 3. Hake such explanati_ ()ns and expositions of prov:l:-sl.ons Code as may be required by the c ases before them for disposal such explanations and expositions are pertinent to their work. quests for interpretations shall be referred to NrtA. of the or where Re-c) Divisional and & tb-Divisional Trade Practice Complaints Committees shall h ave the responsibility. and duty of instruction and education of persons subject to their jurisdictioh, as to their rights and obligations under tue Code; the investigation and adjustment of com ulaints o f n on-comoliance in the first instance and the J: rendition of reports to. the appropriate a &ency in cases where it has been to secure compliance.
PAGE 542
-511Section 1 : ::'L:I S:'I 0_-OJ? GOl.IPL I A.TCE Cor.1:)1L nee c::' u.,ec h e. c e i .1 inc l u . e s : e . ) 1 ;1e instructio : n ... e d , J.C:_tio n oi' ,Je rsons t o the C od.e c e :c1il . . : tlkir t :!ereunde-r so c-s to Elnticip c .te and c:, v o h-:.. C:Ji_:_)l:•Lns of non c o m , J l ic:.nce ; ' b ) T h e o 1 o f by eo.uca.t ion, i'inC . . of :Zc:. c t , r:r..C . T'lr Gssure of o,:Jini o n .i t ' 1 i n the i n f m stry ; c ) :L'h e rc.Jr.str:lE'jlt o f 0:, c:m1ci::.ie.tion, r n d d.) :..c-.c.itiOi.l o f 1.2 '-:ct f ; to Elbencies o f the G o vE;rrue::c L : c<.se::. P .lJ o t } :c)T f:-i 1ed. J -,:_ctic e cor:t p l FL1ts for . .-1.11' . O!'G S o f tl1E:Fe i'e"';1.' .lntions s hF'll "ue ll...i.'! urstoo . com,_):.ri:lts vio lo.t iv::l.S o f tre .Col. e , o ther thc.r: A rtic les III, IV anr.:_ V Articles r efer t o (1) o f 1c:bor, 2 nl'. r , : in.:.mura end. (3) L vbor P : .:o v ifiions , p roviC::.e C . tl:ct :--. co:)lri n t b :r < conpe t i t o:.. c-1J. e ;inf5 rn em)loyc r is viol:>tiE ; <'. lc-b-'Jr of tr:e C od.e . . tC.c'J b e hanC:1et' c:v ; E.L t rt-d. e lc. L1 t . C o . • )J .... i :ts of C o:'..e ' ' i ol< tion 1 nv.s t 'be filel:. i n '.'lr i p r e f e rroly on the s k f ol'm b y the Code A n thori t;y-, C..O' ) i e s of nhi ch tnF\i' be o b t.: i11ec' 1 .. ou rn;; f)i'e.1c y o f the AL.:.t'!l.oTi ty. Anon;ym0us comp ln.i n ts •ill b e c . c tc;C:_ i 2 1 the r iscretio n oi the C om)lri n t C ornmi ttee re c e i vii: 1 co!'!m lc: L't . •• Com) l2.i:1t::; r l 1 me t t ers :Dert" il.i n,; t : creto sh
PAGE 543
5 1 2 higher a gency of the L adies' H anc l b ac; Industr: r Code Authority ui th a rep r esen t ative or v e s o f t h e Ka tion t t l Itecove rJr Administration included ther ein, or to the L adies' Han dbag I n d sutry Cod e Authority , or to othe r Compliarlce .Agencies o f tr1e 2ecove r y Administrr.-.tion. Section 6: FOR ALL::I:GED T h e L adies' Hanc,bag Code .Aut hority s hall prepare immediately a sta t ement entitle d "Information for ; _ ) e r s ons che.rged 1.:i t h viol::.tion of an i.ffi.A Code 11• st.'"'tement shall set forth clearly t h e rules of procedure in res)ect to alleged cod e violations, anc i L :dicate t hat the allet;ed violator i s entitle d to hearing a ncl to from an, y finding s made b : r a Com-Jlaints Committee. The statemen t must also indicate the process v r h i c h a cr.-. s e o f cocie violation re'.c hed t h e National Recovery A d ministration and t h e v arious courses of e .ction may be taken ther eoi1 b y the A d mi nistration. S ection 7: O F DIVI SIOl--A L iL.ill s u :a-DIVI COL: PLAI ETS COf.'iltii I l:i H.Ai-l)LIFG COl .;pLA i ri'JlS a ) Immedi a t e l , 7 u•)on their recei 1Jt b u Di vi s i o11a l Sub-divisional . .. ' or Reg i one.:!.. Com olo. i n t s Co: n mi t tees, compl aints rli ll be examined b y the staff n.nd Hhen s u c h p r elimina r y e xamination that f acts i f true may constitute a violation of t h e Code, the com : 9 l a i n t shal l b e filed and g i v e n a com p l a i n t number. of the com : o l n int, o.n o . 8 . dvice concerr 1ing t h e number &1all be sent immedi atel y to compl a inant. I n the even t tha.t t h e complcdnt does not sta t e sufficie n t f a c t s to constitu t e a violn.tion, o r that adc.i tiona l f acts a r e nece s s a r y for d e t e r m i nc:.tion r:hethe r the Cod e h a s b een violated, compl a i n a n t shall b e required to furnish ad.d i tiona l i nformation. b) i7h.er e a co.nDlai n t i s obv i o usly 11cra..11l :11 it shall be a c k no r 1ledge d Emd I i i t h o u t furtl1er a ction :Dl a c ed. in the file. ".1h ere com p l a i n t s tates f acts n h i cl1 e ven i f true n ou.J.d not constitute a . violation of the Code, a c:.:no: l ede;r.Jent s h all be made to compl ainant n i t h notice of rejection , b y a bri e f of t h e reasons the r efor. c) -:-The r e a cor.p J l a i n t ht:ts b e e n a c c e"?t e d and. all aecessa r y f acts h ave been secu r e d f r o m com p l ain3 nt, it shall b e E'. s s i gned to a staff memb e r for and investig ation . T l 1 e firs t ste p in such inquiry and investigation i s the prer)ar ation of a brie f s t:-> . .tene n t o f t h e alleg e d facts for trans: n issi o n to the reroo no . e nt, advisin g h i m o f t h e Article of Cod e a lleclgod to be violate d . , ancJ. reouest for advice as to r :het h e r all or n n y of t h e fn,c t"' alleged are true, a n d a f urther st.teuent o f the ) O sition o f t l 1e res , ) oncl e nt. Respon-dent shall a l s o be uith a co :) Y o f the Cod e a nd . o f 11Information for Perso n s c h a r g ed. '17 i t h Violation o f t h e L acH e n 1 Ea ndba;?; Industrr Code 11• S e c tioa 8 : .ADL I SSIOl-OF V I O L.ATI O F I f res'Jo n 6 .ent admits violation of Cocle, but inC:ica tes e i s to CO! : ) l y i n t h e fut u r e a n d has m;.1de restitution for past 9811
PAGE 544
-Sl3-fo:tat"ions, ccrn p l .:.hctll be n otifiec... of such c...djustrnent. S ection 9 : D?lZit..L O F "IOLNI'ION If thE: rEs)ondent denies the f:-cts ns ollegec: , or if he ac1mits the feret o , or tr,."'-c t l:.ere i s !1, of codes, o r if the frils t 0 srtisfy the Complrints thnt is n o t violatin g the Code, he be notified. t o . . r r:.t the office of the Divisiol!E:rrs desirr.ble foro. field <:.gent to visit ::cespone c ond c m : u , rUJ.!ication o..sking f o r c.. reply within five Ol..<.sL:ess d rys shrll be se11t l1il. by rebiste red. m t:.il. There i f no reply been o r in any if r espondent indi c a t e s U1l'.'lillL1.sness or o: intenti-:m of c01nplyin.;, o r o f malcing resti "'L.ution , the sh 11 be . _,ssi6nud t o . fiel0.. 1.gen t for such furthor invc::st.ig.". t ion , r: rw'. y be to c: . . e ten:'line the f ncts o f the c asc :--. t :r:rst hrncl. Section ll: c::::; o? TG EIC,J?. BQ::.,IES a ) After r.:. Sub-Divi:,ion>1 or Be.::;ionrl Compl,"'ints Corruni ttee hr. s eYJ1C'.ustecl ::.11 rensont'.blc efforts in r .djusting my com plC' .int th:couc:;h intervie ts, f i elct inver.;tigntios, etc., "nd the cornpl:-.int is still u n ncljucted. , it m"'y be referrehorn; n o c'.icposi tion to correct o r t o t' .C:ju:::;t, such compl i mn y b e ir'lln e 6.i['l.tely r efe:.. r e d , togt3ther :Jith the e -ntire report, t o the Nntio112..l C omplf'..int s Cornmi ttee :1i thout follo':Jin: : throuc h the rec-::;ul ,.,_r prescribe d routine , c.nc: : _ the ::;.tio nr-1 CornpL'L ts C ornnli ttc e rei r it 1Homptly to the N"'.ti01l o . l REcovery Aeuninistr:'.tio ! . b) C r.:.ses sent by r. Comr,ittee to, ..... h.:.g h _ r boci.y for furthe r nction r.mst include the follo:Ji:1J: ct"t..,. : n011
PAGE 545
514-(r) The ori:, inr 1 cori}-il:-int C.i(!.'8:>t of thE: (b) All the crse. (c) All orit;i.r l eviC.::_ence, iHch: . ix; of f i e l d ( d ) of the; Co:Tplir . ncb tte e . (e) n.:.L:.e b y the or il"'..t ervicJ, :--n: ri t tc:.:1 s trt emcn t s fi1e a b y l1im . A report o: t h(. Co::'!1J)l-i:1 t s th;>t notice o f the complrL1t ron o f his oblig;,_tions in r e spect t o tho subjGct o f the plroiLJ.t; r copy o:f the C o d e ; t' .. copy of the L r.d i e s1 l h n d br'.g Industr;y C o d e informr-tion for persons o f the Code ; :--. surn1nr.ry o f the f r cts , .. i th r e ference t o the violrtio n s found. b y the CompL:.ints Committee, , nd [ny other pertinent fr'.cts . =:espol ci_E;nt :-'lso b e n otified. of r e f e rsnc e of -ny c omplro.i n t :'gr'.J .nst him t o h ir;h e r boC.y f o r furth(.r :--ction. S ection 1 2 : PROCEDPRE FO?. !IAlTDLIF G BY 1 -ATIO NAL COI.IPLAIE;_tlS co:.ii i i r..) 'Jpo n r e ceipt of c•. c onplri n t r c ferrec". t o it by Di vi sion;:.l, or ?.o.:i o nr•.l CoLrni ttee, o r the N:-'.tionr-1 T:rr..d.e Pr['.ctice C o:npl . " . L;. t; Cor.lTili ttec or the 1.-,,.,tion-l L :: b o r Complr. ints ttee, f'..S the crse m.r.y be, sh;. l l so n otify the com}Jlrinf'.nt respondent. The J. b e :clvi sed fte r :--l),Y:copri n.t e e x rmin0.tion of :the com[Jlc-.J.. n t th:-.t u n le:-; s he hr s ; t i o nr.l f:-ct s t o s u b mit o r unless he cle si rec c. r e the c r .se ' : :ill b e referre d t o the 1-'r\ti o:<.1r. l Recove-ry AcJmil'llstro.tion • . . ' i t h c-rE..q"L: .est for leg"l "Ctio n . b) I f the respo r cl)li e s t ht r..cljus tm snt h;o. s oce11 m,"de th c rcse s h rll b e refen e( br.cl:: t o t:u> Com!llr-int s C or.1mi ttes :1l ere it ori , _ _;j.i.-1,:.teG.. If r es:;JondE..nt s ubmits furt h r o r :cequests o. furt}::..e' _1.e".ri nr; , tlle C " . s e be fo:c he.:-.1 L1g o y the Execu tive Secrek'.r;:,r of the F0.tio n :'.l C o miJli::nts COinmi ttee. If rfto r tho hcr.rin.:; t:1c r c s;_)onclcnt fr.ils t o cor:1ply r:i the rdjustment p rescrioec l b y t :1e Compl0.i nts Committee, o r t f t'_t r-n y ti!:l.e the Comrn i ttee is the respondent n o d ispositio n t o correct o r r C'_j u'J t the C " . sE. , it s hn.ll b e refLrrE::d. t o the R e c o v e r y AcJnil:is trn.t i o n to,::, other th r•. r y o f such recomnec1CL" .tions r.s the C o . 1 n i t tes m:-' y c:.esi r c t o m,J::e. c) Ll ther p['rty t o : ' sh['ll hc-.v e n n unrestricte cl. ri(;ht of t o l-!1\.A f rom the o f t h e N"'t i onrl ttee. r.i' h e n-mes -j.1l. ><:'.rt ie--; t o the cr•.ses "'n C f c t s 111ng thereto shr..ll S ctio:c1 1 3 : P Q -,{G R 0? OF. ABO L ITIO N OF S U9 0 RDi l '1ATE :SS . T:1c C o c"'..c A uthority s h "'.11 h0. v e the po' .:er to re1nov e .:--.ny memb e r 9811
PAGE 546
5 1 5 -or , e:abcrs of ;:-_ny subor('t.in:'te r;enc y • .. ose r.ppoL tnKnt or e l ection rests :Ji th the C olie Auti. ori ty, or to the functios o r to t'bolish entiTel;;-r.--:1y .... t!-H:: crct'tio .. of :h.iCD r ':Jt s ':Ii th the Code Authority, ir , the juDgment o r ' thE; A-c..thority, such l'..Ction nill promote just "DeL ei::'ic:!.c:.nt rC:Jninistrr.'-ion of code functi o n ; provic.ed thr. t in no e vent sh.:--.11 the Coc c Autl!ori h.:-.v e tle po:cr t o re:r:1ove ,"n;y reprcsent<'..tiv 8 s o f lrbor Lrbo r Corrrpl:ints C o:11_it tecs. Tne o f the !!1enbcrsof thj_s Cor.1r.1i ttee s}l:-ll be oy the LG.
PAGE 547
5 1 6 E X I B I T C 1
PAGE 548
-517E C 1 . At meetinc of t:1e Code Aut:wri ty helcl_ .:'.t t:.1 e licAl)in on June 14, 1934 f ullo\7inc resoJ.utic n w ;:.f'. mr-.de, s e c o 1 1ded c:-.n e C o d e oe, c.nd i s to c . .::r.ti..o n n l :::.,..-bor Comyl L i nts. CoEll.l'i tte consi st:..n..; cf t .1ree L<'.bor Advisory Boo . rd. s :1:::'.ll c..lso '-P l)Oint t:'1ree members t o this ccmmittee; t -1e A c:.,11inistr0tio:1 I:e u b e r of Code ty sl !c..ll be c. rnembc::.1 ttee c:.nd The . t com:ni t tee s : : .,.l l =lr. v e ['. pc..ici s e c r e to..ry c :ncl <'. leb.:;..l :-.c:lviscr; Thc . t t !.le nN!leS of C')'lf:tisinc e :is c or:.mi ttee s Lc..ll be p:cesent e d to CoU.c:; Aut llori t y r . t the next regttler meeting." ( Si;1 1 e-i) Irvinb Sc. :oenl:. olz Secret::'.r ;ySworn t o subscribed befo r e me t:1i s 6 tl1 cle;y of July, 193Ll.: ( Sisneu..) E v e . Sel i:_;1::12.n J Public ' ;e\7 Y o r k Count y Cler l:s iTo. 185 ( SZAL) J ert York C o . Register r"o. 3 8 -67:5 Corru-:1i s s i on expires Lic..rcl1 30, 1933. 9811
PAGE 549
-518At ['. meetint; of the Code Authority c:,t l.IcAl:)in on J une 1934 t :1e n2mes of members were SUGGested ClS me1.1bers t o serve on tlle L<.'.bor Complaints C o m D i ttee. T:1e Cocle Authority voted e,:p) r o vc,l. D
PAGE 550
9811 Mr. 0 . 45 :Sroc>.C.wc.y Nevi Y c r k Ci Dec;.r I.ir. P 0c.rson : 5 1 9 -July ll, l'J34:. I n c;.ctdi tion t o Industry mer,1bers c f t 1e a tional L.:'.b o r t s Conuni ttee, t:1ere s:--..o.l l be t h ree lc;.bor members of s..,.ic. Co!nr, i ttee t::J be d esiE,n2.tecl t h e L.:'.b o r Ac.lvisory Boarc1 of N , .tion2 . l Rec o v ery Admi nistr2.tion . V e r y truly yours, (SiGned) A . ----------------------------.h. t ten t:_al, C ocle Dire c t cr, Lc?.
PAGE 551
-520-CODE ITY LADIES ' I EDUSTRY 347 Ave nue NE 1'1. YOrtK ) • July 6 , 1934 • REPGRT T O T E E NATIOl'LAL ?3CCN:Z::1Y ADL E ; l Sr.[3.AT ISN (;:i!, ADL I N I STRATIS:i.-J L "Ei.IBE:rt GF C ODE AUTL:JRITY FOR 01!' FAI R COi.iPETITIGlT FOrt T:::E LADIES ' INDUSTRY De<.'.ll G. Edvlt'.rds De:,Ju.t y A .. l.mi n i strc:,tor A)l)c.rel Sectio n , Divis i o n 5 :N::. tionc.l Recovery Adrnini s trL:. tio n 2.sll ington, D. C . Det'.r Hr . :Ecl':"Jc;_r cls : T l 1e Cocle Authority of the D..i1ove Code of Fc-.ir tion desires t o qualify as E'. Lc>.b o r Coml)laint s Corruni ttee in t h e fir s t in s t.':lnce f o r tl .. e of r eceivinG c.nd c? .. djusting L:.ll lc.bor compl aints of violation arisinG i n the Industry. It i s the clesire of the Code Committee it crel:".te itself as C'. Com;)l<:'.ints Cornmi ttee. Tl1e G..."1d int e rests re:)resented by e['..c h member of the C ode Authority fu..."lcti oning 2.s 2. Coml)J,aints Conunittee 2.re ns f ollows: N A UE: Do.vid A. I nc;ber Pres i dent ' OCCUPATI0 1J: },;['.llufr ... cturer of L['.dies' .. g s L ac.hes' Indus try * * * NAl.iE : Dc:.viu l.io rben stern Pre sident OCCUPATION : l!lanufL:.cture r of L adies ' ::Ic.ndbab s rt.EP:rtES2:i.JTI ! ;G: L['..dies1 Industry * * * S o l Lutter)erl President OCCUPAT l:ir . .nu f :. c turer of h .cUes t rt.EP:r?.S.3EHTil:G: Lr.dies1 Industry * * 9811 Ingber 2.nd Co. , Inc. 347 Fift:1 A venue, N e \7 York , N . Y. [,lorgenstern (.; Brosseo.u,Ir 26 i:les t 17 e1 Street New York, N . Y. S o l Uutt e rperl, I nc . 330 Fift:1 Avenue J.\ew Yort: , • Y.
PAGE 552
-:J21The business of tl:.e NATIONAL L.A'BC2 CO..IPLAI NTS is I G>ncl will continue t o be: 347 Avenue, .rJer,r Y o r k , Y. ex:2. C t scope of s;.id C o ; , ypl r .in t s Comni t tee will be tl:.e terri tcr,r emb:;:c-.ceo. by t :1e Code o f Ft:.ir Co.:-npeti t ion for P.bove-nu,1e0. Incl..us try . It is desired t:w. t complP.L1ts within scope o f s".id Code ty < .re t s be filecl. in t:1e first ins tc:mce wi tll t h e sD.id Cod e Authority. .,r. id. Ccrn. Jli ttee i nsof.:-. r ns its Industria.l Adjustment A;,;ency is concerned , i s to J.e12.ints Committees, will be LJi:.lediately re)orted to the No..tional Recovery AdrninistrE>,tion. Resyectfully submitted, ( . .:::1 G .. l P e"'r"'on -' ..;'" - • i • c. v r .. , "D "-' o • I • ..&. e o . rSOn A c1..ministr.:ttion l!Iember 9811
PAGE 553
T.Ir. G . \1. Pet.'.rso n 45 B r oc..cw.:--.y New City De a r Lir. Pearson -522-C ODE AUT.:-iG:rtiTY LADIES 1 I NDUSTRY 3L17 New York July 6, 1934. It is t'. 1 e a i m ancl .;urpo se of t :1e Code Au t:1c r i t y of tl1e L e.c.Ues 1 ::anclbe. g Inclustry to secure cmn::_;liance wi t:1 ) r evisions of the Code by e.ll )ersons subject to its juriscHction, wi t >out resort of legP.l )rocess; and t o C 2.llinc in :.:;overnmentf'.l c.id until t: .J.e Cod.e Authority have eX:1o..ustecl o..ll re<.son< .bl e efforts e.t securing co:tr) l iance a therwi se • . , . T l 1e Code Authority has orgc:ulizecl a N2.tion8..l LE'.bor Com mittee consistinG of not less than six members, of :1.:we been ted t o rel;resen t by the Code Autl1ori ty. Administr2.tion Liember of Code Authority s : Le.ll be e. me; nber of t:1is com : nittee. ;le shall ,,,lso hnve a full time executive secretary '.nd c. le_;:1l .:'..clvisor. T :1e n c . .rnes and interests re:presentecl b;:,r e2..ch m ember of the Ne:'..tiona l Lc::bor Cor:r_;_;lc:'..in ts Committee 2.re 2.s follows: David A. Ingber, De.vid i.iore:_;en stern President President ., President C o . Inc. 3<-:7 Fife: . Ave. , N.Y . Lior genstern Brossee.u, Inc 26 W. 17th Street, : : Y Sol Uu t Inc. 330 Fiftl: Ave. , N. Y. Tl1e business C1.Cl..L1.ress of t:1e rTr_tionF.l Lc-.bor C o : rr_Jlaints Committee is, c:..nc1 will continue t o be, 2.t 347 Fiftl 1 Avenue, New York, Y. T h e Code Authority is duly and IJroperly constituted and is function inG s0.ti sfP.. c torily since the effective do.. te of said Code Barch 26, 1934; it be finMcially t o undertE1ke exlJense of fm1ctioninc of t h e se.id Com)lc.in t s Cor.nmi t tee, and is J.X'.rticularly desirous i n t-L1e interes t of strict com::_Jlience the Code P..nd t }:e e.nd s :oi:c i t of t>.e 1h. tioncc l Recovery Act, to :place trustwortb y investigc:.tors in t:J.e to t ... 1e end that e nch unit of ti.1e industr;yy mc.w be r.. com)lete knowleo.ge th['.t this Code ru 1 d the Act itself t o be o bserved, pro?erly enforced. 9811
PAGE 554
-523lir. Pearson:Jmy ch8.Ttge i n the sc:.id. Commit tee, e i t:1e r i n personnel 0 r i n the est2.bli t of regional C om:pla i n t s Commit tees, w ill be imrnedin. re"9ortec1 to t:he .fa tiona1 Rec o very Ad.r.lini s trc. t io;.1. am: e d1 Sworn t o subscribed befor e m e s 6 t:,_ day o f July, 1934 (Signed) Eva S e1 i gmnn Notc>.r y Public 9 811 V e r y yJurs, C S D E LADIES1 INDUSTRY (Signed) A . th A . l:i t tent : .w.l Code Directo r (Signed) I rvinb Secre te.r y
PAGE 555
9811 ir. (;. 1 i J. Pearson 45 B r:)aclwa y N ew Y o r k City De.i.r l : I r . Pe?.rson: -534I n Additio n t o e : e t:1ree Indu str;;r m e .1b e r s of CO!'ili't1ittee, s l w.1l be t'lree 12. 0 0 r m e u b ers cf s e . i c _ Commi ttce t o be cl.esiE;,no..ted. by L P b o r A dvisory Bo
PAGE 556
-525CGI.iPLI.A NCE ADi1 iHJ I STBATI . -C GDZ O F FAI::t 0 T of t_ e ARTICLE I. GnGA1 I ZATICN G} LABCn L !TS C Ci.il Section l: Cre2 .tio n of J.J2.t ion.:-'.1 L c ."uc r ComJl ain t s C _mr ni ttee T' e Code Authorit y establish .::1. l ational Labor Com)ln.ints Comni ttee consi stin.:;; of not less thc:m (4) or more tha n ( 10) nemb ers, one-lw .. lf o f shc:.ll t eml_Jloyers and she .. ll be c..p)ointed by C ocie Aut:10ri t y , o r by its j_)resiCI.inb officer; end uf vri1ich, re:}resentin.; em)loye es, be by U1e President o n recormnendation of L a bor Advisory Board of t:1.e Nation-2.1 'i?..ecov e r y Ad:r ninist:re .tion. An Admin istr ation Lie m ber of the Code Autl1ori t y s:l['.ll be a rne;nber of this Committee . He sl.1.all no v o t e but a veto subject to revien by e1e Administrator. The Committee s:1all have r:. full-time Executive Secretary, who s ::e.ll be on stGff of tJ.1e L2.C'ies1 llandb a g Code Autl:.ori ty ancl mew devote part of his time to Code Auti1ori ty duties those of Cormni ttee. The Com:uttee shall C'..lso l.1n.v e D. let;al adviser. Section 2: Administrc.tive Personnel of -ationC'.l L e .. bor Com:9lc:dnts Committee. Tl_e C ommittee shall elect from its m e mbers a ::,>residing officer t o )reside a t all !neetings, but suc:1 person si1all reta i n end exercise t : 1 e ri.:;_.i.t t o vote. C o rronittee shc.ll also elect an a rbitra t o r YTl:.o shall be CC'.lled to serve e.s pres i d ing officer with right t o v o t e t _ e Committee is evenly cl.ivided on c:ny question . The Cor:rrni ttee, subject t o disap1) r o val 'of tl1e .. tional :rtecovery Admini s trc? .. tion, simll its ovm by-lc?.ws 'nd rules of l)r ocedure, and fix tl1e time and p l a c e of regular e .. nd sye cial meetinGs, e .. nd man ner i n such meetings shall be called and conducted. The b y -laws, with respect t o a quorum, she.ll p r ovide for equal voting re:._Jresen tc:_tio n of e mployee and employer m eElbers. T:1e facilities o f t:..1.e Code ut::ori t y a s to necessary office space, s tenot;rc: .. 2.11d cleriCE'..l and place of meeting , s:1all be made a vailable t o t h e Coinmi ttee. T'.11e Executive Secre t a r y of tile Committee , s' all report e.t 2..ll meeting s t hereof a SUlilffiE.ry of co.ses :1andled by the stcif in t_le intervals between meetinGs t o e r 11i 2. s te.temen t indice.ting dispositio n o f c ases closed. _;: , Section 3: Functions of Labor Cor.n lC'.ints Committee (or Ind.ustric.l J.el2 . tion s t tee) 2.) Nntione.l LE'-bor Com)l r.in t s Co.:-ni ttee sl"C., :'.l l 1ave juris-9811
PAGE 557
-526 -die tio n in L 1 e first ins tnnce over o.ll ts ;:tll ecing viol?.tion of Articles III, IV c=mCl. V w hicl1 refer res)ectively to ( 1 ) Hou.rs of L ab0r o.nd. ( 2 ) l.Ii n imum v7ages of Ladies' Incl.ust17 Code, C'nd ( 3 ) vLc:>.bor Provisions, and in conduct of its work may recormnend to N['..tiol1C'.l Administration, t h r oUGl Sxecutive Officer o f the Code Aut:1ori t y , tem} orc.'.ry exce:Jtions t o ,'nd te.-nlJo re..ry ex era:9tions from p reivi sio n s c.. f t"i1e Cocle, and. m2.y rwke exylruw. tions c:>.nd e XlX)Si tions n..nd of Gocle )revisions as its work m2.y req_uire. The Executive Cfiicer forv1r . rcl. to t:1e N c 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 tions of tional Co lllJ12.in ts Com mittee me1de pursur.n t to the 1Jrovisi:ms of b) The Corrr11ittee sh.::.ll issue:reguJ.ations cle?.rly clefin.ing its relations v1i reg iono..l con :) le.in t s t tees !_erein2.0ove lJrovided, anc1. is er.l)Owered. to C'.lter 2.nc.,_ terri t oricl Jt.:.ris diction of ret;;ionf\1 lr.. b o r com:,_1lc:>.ints ttees t o t .1e numbe r -----------------------of .. o.ncl t:" e number of its members 2 . s cirCllil1StL'..ncas :Jr-.y r e.-ruire, to issue resu.l.ations C?,ncl t o l'equire Tfl.y be nec esso.ry to md-<:e rules effective, e1nd l:ee:._J 0o;-ruittee e.nt1 . t:1e National :rtec overy Adm l:..1ist:t;'<.tion :lui .ly c:,ncernin:; l.n.bor :;;:>liance vror l:: under t :1e es , . Industry Code. Section 4: ReE;ionRl L a bo r Cgi . r'"'l['.Ln ts C01-;:.ni ttees ' T:1e .. Re g ional Lo.bor :9l 2 .ints Comraittees for the V e .rious lJarts of United'Sto..tes , nnd: desi[;n ate t ::..e jurisclict_ion or" sl.?-ch 3er;ional L . ? bor Committees, tJ.1eir loce.tions 6.nd t > .. eir v:f ex")ense rlistributicn, s :1all C'.:.? )ly to 2.ll persons suJj ect. to tJ:.e Code l o c ated in the t erri tory inclucled unc' .. er. tlle juri sdic"tivn of' .E.egione.l C o ::'l:,;>lc:>ints Commi tteee. Section 5: of ::.:tegi on-:11 Lab.Jr C o :nrni ttees ( ne[;i o n2.J.. Inc1.us trir . l s vo:T • . t i t tees) ( n ) F"or ec: .. suc: 1 Reg i 'Jn2 .. 1 Ln"'uor Co:T}l aints Co::1.. .. 1i ttee, of e1e. sen tin.;. sl.:.all be b:r t b .. e Recove:-;. ' Admini str.atio n ::m reconu-nenc_ation of t :1e. Lc.bor AdvisorJ B"OC'. rcl of t:te.: e .tionC.l Recovery Acb:1inistration. members rej_Jresen tin(; shall be a::_J::_Jointed. b y the Code Authority from c:.. pe.nel ::_Jersons nomin2.tecl by the Di-..risions affected, so f'.S to sive fair representc .tion t o c.ll. Divisions. (b) Each such s::1 all elect 2 . c : . . <.'.irrnrn, who shall rete.in cmc1_ axercise t > .. e ::_xiwer t o vote. Sd.d sl 12.ll also elect an a.rbiter WllO s>e.ll s erve, t o V(:)te; the committee is divided on 2ny question. Section 6 : FUNCTIGl\S OF REGIGl;AL LABC.RCC .. .PLAINTS C C:u . liTTEES (or i: EGl ' -:TAL . L\DU STRLlL C C:: . I TT::::ES. ) The Rer;L.Jnc.l L<'.bor Cc.,::n lc.ints subject to ':.. ' 981 1
PAGE 558
5 27prove.l of the ND..tional LD..bor Complaints C o . uni ttee, slw.ll etdo_)t by-laws, anC.. rules of y rocedure , anil S11.all mc>l e ) r ovisions t :1e r ein for periodic me3ting s c:.nd l 1 e r .rine;;s 2.. t V :l.r i JUS J ) l aces in terri t cry subject t o their jurisdiction so o.s t o Give r ec->.sonRble for the com plaina:n t s ancl . respondents t o 2.l1pec..r before the Cortl!J i t tee . b y-la ws may also p r ovide f o r c o nd.uc t of .s.nd inte rvie ws by sub Col11.mi ttees on whi c:1 t:"ere s:lc.ll b e e qu:.:-.1 r e 1)rese"1t atio n of members re)resen em)loyees r-.nd me n o e r s re:uresentin[; eml)loy ers. Section ? : DEL3GAT L :jF p r .;z J .tS :SY BEG I C NAL T JhBCJ3. S COi i LI s :.3. rr KATJ TDu STnLC\,.L rm:s) _ T I s cci.'Tn TTEES. Any Regional L P . b o r t s Cor:llni t tees mc:w, by ngree ment approved by t:1 e NC"tion2.l Lc:. b o r Com::_)laint s C ommittee, c .elegate a )ortion of its or transfer a p ortic n o f .its jurisdiction t o c>.ny other Regio n a l L.:Lbcr Comi;lc>.i n t s Commit tee w:.1en sL.:ch delegation 2nd transfer i s i n t :1e int e r e s t of bette r aclmin i strP.tion or likely t o f acil i tB,t e c..ncl im-prove c orrr)lin.nc e work. S ectio n 8 : :SXPEI;s:ss 0_F Tl:E C C:OE. TY. Each Regio n2.l :U2.b J:r C0m.c)l a i nts Cmnmi ttee p r o-rc..te t : 1e ex-_Jense of h andli ne; lnbo r and/ or l>.bo r d i s:pu tes among t :1e Divisions under its jurisdiction i n such .:•mount and in suc h me.nner ee.Ci.t Divis i on, 3ubcl.ivision, end G:rcup con cerned be2. r its l ) roportion>.te c:.nd. j u s t of t o t 2.l expense of said Ret;ional Labor CoulJ?lc:.ints Comr:ti tte. Section 9 : AP?-:'..OV AL C F PErtSON1TEL OF LABOn CO IFLA I Y TS BY LABG R Jill V I S :J O Li.D T h e L abc r Advisory Bur.rd o f ti.1e N . R. A. s : 1c,l l "'..p prove selection o f e.ll rel)resentP,tives of l abor, m e w b e selected i n c::.cco rc1C1nce wi p r ocedure :1erein l)ro v ided, for s ervice on any le.b o r C o .J:)I<::>.in t s Commit tees P..nc1./ o r Indus tri2 J Rel r ,tio n s Comn i t tees, if, a .. 11d when crec. t ed .• ARTICLE II. GZlTE?..AL FACILITIES O:i!, CC : .:PL A I E TS CC:.fi.IT:!.1EES Section 1 : O F The Code Authority m a y "'.11 executive o r.::;aniza tion t o be knoYm as t:1 e D e:partmen t of Compliance . e['.ded by a C h i e f of Com:lli['.nce, whic h De"}artmcnt shall h.ssi s te1nce shall be p r om)tly. -.T.1ile enG<.t:;ed i n assi ;rnrnents for Com pliants C ornmi ttees sucL s taff s : : . 1o.ll be under i nstructions and q 1
PAGE 559
-528 -direction of t h e Cormni ttee and sh2.ll be res)onsible L tereto. .T11.enever necessary a::;;ents may be co.llecl. t o testify a t en Cc.ses arisint; under jurisdiction of e.;ency b y wl1om D..re em ployed. S ection 3: J!'UNCTIONS .A.liTD DUTijjjS G F FIEL.D AND 3T.A:i!,F Zl1 i PLGY2ES. c:-. ) It is prime.ry of field. at:,ents t o determine ff'.cts, t o exy l ain t o )ersons subject to t l: e Cocle duties, t:1eir and obligations, and t o attem) t b y t act and :persuo.sion to secure e n [lmicable l?.djus t ment of cmn:.:.,lc..ints . In ce1ses w :1ere res : Jonclent aclmits f acts 2-s allebed i n 2. c om) lc.int fielo. e.c;ent should. obtain his explanation and a s t e.temen t from h i m a s to t will cl.o t o resti tutic n f e r violations admitted. b y l 1im. If re s:pondent admits fc.cts a s alleGed but t clces issue v . s t o the a::>:9lication of t:1e C ede to facts, tl:.e field L gent obtain a clear explc:'natio n of t!.-::.e reasons for his :Josi tion. I f respondent ctenies f acts, L t e fielcl agent s:1all per missio n t o e xernine recorcls but if such l Je r missi:m is refused s>all n o t insist u :pon access to such records. l: e should., h owever, exp l ain to respondent that :1is refusa l will be an indice.tion elat :le does not desire to adjust tlle com plaint e .nd will OlJere.te t o cl.isadvantage. b) Before i nvestibc>.ting c>.n alleged violc?.tion, field a gents s:1all notify res: :>ondent of ap)roximate d2.te of '.rrive.l c>.nd of t:1eir visit. Employees sl1oulcl n o t be interviewed during working h ours or UlJOn tl1e premises o f t:1e r es:pcndent unless permission to do s o lJ.as been obtained. frOin l2.tter. Field agents sl1ould bea r in mind a t all times it is functio n t o find t h e f acts and ex:9lain s o blic;e.tions under tJ.:.e Code. T:1ey sl:.ould n o t engage in a r t; u. ment or dis:_Jute. Tl1eir should be mc..de only to t h e alJ:Propriate Com::_Jlc.in t s C o .!uni t tee f o r action. c) T h e Committees sl1c..ll p r om)tly e.dvise tl1e Code Autll ori t y or its agencies of any c e..ses in whic:."l j_Jersons subject to t l: e Code l1.e.ve f ailed to J::>ermi t field <:'.gents of comrni ttees t o visit, exemine, or o tl1erwi se investic;c:.te conditions in a n y e s tabl i t oper ated b y t h e m , and tl1e Cod.e Aut:1ority <:tnd its agencies give similar info rrnutio n to the Cormnittees. Section 4: FIELD AGE1TT1S :EP u RTS. If a field age n t reports respcndent not violated any :pr ovisicns o f t h e Code, com p l ainent will be s o acl_vised, and if n'J •vorc 1 is received from h i m within <:'. rea sonable tim e t h e c c.s e s :1all be closed and t::. , e res:ponclen t s o aclvi sed. If n.gen t 1 s report in clic.s.tes respondent is willinc; t o com1Jly and mal:e restitutio n for past vioJ.ations, upon s atisfe.cto r y evidence such action has been talcen, ac1vice be Given t o res : Jon c lent 2.nd to comj_Jlainant and c2.se be closed. If at;ent re:Jorts res:;_;onclent refuses to comlJly or mak e re3ti tution , or : ... c>.s f(l .iled t o fu.rnis}.l s atisfactory. eXJ.:Jlanc.tion ancl. it is decided t furt::.er a t tem:?ts to adjust com p l aint will be futile respondent sl1all be n.dviser. tl:e case been transmitted _for e.ction to t:.1 e :-_:>rolJer e.tionC'.l Com:Jl aints Com-9 811
PAGE 560
mittee of Code A u th::;rity . I f t:le CQO::l)lc>.inc:illt o r res)cnc1ent i s w i t:1 FieLl_ _..,_&ent' s t: . e t o be f o r e t : : e E'..)_)rC)ric.te Cor!'li;ii ttee in t o f ile C\.. s tc>.tement vtit::. t:!.1e Co,1; , 1ittee new o r 2.dditionc..l fc-. c t s c-.s t:.ey feel ['..re t o t ... e c.: s .. e . Yflene ver c-. md:es r1. stt:'..teuent in :::.. a r i n an interview, sl1oulcl be b y t::.e Exec utive Secretn.r y ')f e 1 e Co.-.1T.lttee. stc-. t e J 1ent be s i gnecl re t if :1e i S w i 1 1 ing; i:L' : w O.ecl ines t u s ign it, t :1e indice. t e ; if res:;_:>cnclent declines t o mnde c:,ny s tatement, t'1..e o f Cc;n:)lai n t s C oYimlitte e s:wulc. so indicc.te. A R TICLE III. PRGCEDURZ I : ; CF Sectio n 1 : S f Co:-.l::_Jlic>nc e as used herei n i n c lucl.es : t'.) The L 1s truction c-..nd educc>.ti6n of ::?ersons subj ect t o t h e Cod e concer n i n.:; re83)onsiblities so a s to c-.nt ici)ate ancl 2.void com)lc?.i n t s of non-compJ.icJ1ce; . . . o ) Tl1e adjus t men t of com::_Jlo.in t s of b y education , f indinss of I c:.c t, and. lJressure of opi n i o n wi ti1e c) T:le c>.cljust :ne n t of co--,l)le.in t E C.)n cil L'.tion, medic:ttion c>.nd c..r b i ti on; CJ.) rendition of re:Jort s t o e"1f orce--,1en t c . genci es of t .1e cover mnen t in cp.ses w'lere ?..11 o t : 1 e r s fn. i l ed. Secticn 2 : DEFE CF LABCR COli.?LAI NTS. l3;;r l r .bor c o:.l)laint s for :._Jur:;_JJSes o f t:1ese r ec,ule.tions s:1r..ll be umlerc:tood cn_y t:wse comj_)lo.ints w:lic:1 a.l l e ge viol2.t;i..ons o f labor :)rovis i m1s (Articles III, I V , V) of Code , Articles refer re S )ectively t o (1 ) of Labor, ( 2 ) I.:i nimurn .7nges, and (3) Lo.oor ?revisions. Sectio n 3 : .FORM OF C0MFLllNTS. Com:;_Jl aints o f G ode violntio n s mus t b e filed i n writing, Jrefero.b l r o n t::e f o r m b y the Code Au ty, copies of wi1ic:1 may be obtc:.ined from any . agency o f t:1e Code Authority . 9811
PAGE 561
-530A n onymous com1 l a L 1 t s will b e acte d u • o n o n l y ii1 t l 1e d i scretiOi1 of the Com - • le.int Corn m i tteP rece i v ins such com1lt'.int. T h e nE!.me o f t h e corrr.)lc-dn3 .nt o n l o .bor s mus t uc l:ept confidentie . l al1d t h e f act a corrn l 2 . i1:t has been filed a gainst any person under the C ode allebing o f 1 rovi sions of the C odo m u s t also b e l : e -Jt confidel1tial. S ection 5 : WHE=1: C OLiT'LAPT7-S SHJ..LL 3 E FILED. Com_)le.i n t s of vio l2.tions of the L adies 1 H e . nd-oa5 Ind.u stry Code must b e filed, in tho .firs t L :st"'..i1C e , Pit!l t h e Divisiom : .l, Sub div i sion al, or CC)Imn i ttce , ajd.. i f suc:C com1l a i n t s a r e s e n t ori:; inall;r to any a 0 encies, t'J'1ey s ht'.ll b e t o the b o d y . Com:; lc-L 1ts sent L..irec:t t o LE!.dic s1 5'andbe. :; Indu s try Code .Authori t y o f fice i n l7ew Yo:r:k City shall b e referred i m , 1 edia.t c l y to the ' 1 ro-;e r Divi s ional, Suodivisionn l or J.e g ional Committe e . SectiOil 6 : her'-L ; shc: .ll :) r e vent c-.:1y com J 1 lai:.;, .nt a t an;)' tim e from a y : _ Jealin._, t o t h e Ad.mi : 1istr a t i o n w"hich shD .ll have author ity , L : its d i s c r etio;.1 , t o r e f e r suc h com:_•l a L :ts to a 2.0e l 1 C , " of t h e L e d i E s 1 Code A:1thori with a tive or o f the 'Na t i o n 8 . l Recovery .Admini strn.tion i ncludeu. t h e r e i n , o r G o t h'3 Le.U.ie s 1 Hq_ndb ac:; I nc':..ustry Code Authority, o r to other C ompl i a n c o A , enci os o f the lTat i o11e. l Recover y Ac@i : l i io:,.1. S e c tion '7: Info rmr..t f.o ! A l l esed 'Tio l2.t ors. The L adies 1 Hkel1 the reon b y the A dmi E i strn.tion. S e c t i o n 8 : Procec l:.1..r e of c-.nd Subclivisional Com 1 l cdnt s Co,1ni ttees i n Hand .linr: Com11 P . i!.1ts. a) Imme d i < ; t e l y u : J o n t h e i r tec e i :,t b y D i v i s ionc::.l, Subtli visi onal, or Re giona l Com• l.::.ints COH!:•laLlts v rill be examined b y the s t a f f there of, E!.nd vrhen s u c h 1relimin2.r y exD . mil1atio : . indica t e s t h2 . t t h e facts if true of the Code and C OI11J1 l aint s he.l l be filed 2 . ncl ... a t n : im b er. Aclmo w ledement o f the and a d vice conce ri.1L1 s t h e conr.1ln.i : , 1t n'.llTiber shall be sent immedi atel y to the c cn n l<'.i::i.a nt. I n \;he e vel1t tlm t the complai n t does : aot sta t e f a cts to constitll t e a violation, o r tha t addi tio11al f acts are 1 e cess017 for d e termi n"'tiOl1 ::het h e r the Code h a s 9811
PAGE 562
.-5 been viol? .te:11 it si.1all be n.ck;.1owled[Sed and without further act iol! L:. fi 1 e . . !l:.ere connlc..l _t s tn.tes facts which eve:{: if true wo:..'..l d ;1ot con.stitute a of the Code, ach:now ledgeme;.1t she.ll be rne.de t:;, c o r Tl l t' . L1".n t v itb notice of accom)2.11ied b y a brief e:x-;lam .tioi.1 of tlle t hr-refor. c) 'Vher e a corn:)l:-int hc'ls 'been ? .nd n.ll 11ecesse.r y facts have bee;,!. secured from co;n:-)lai::.!a,1t , it be c-.:-.; i,_,:,.1• to e. st:.1ff member for nEG. investiLatio:L ':2he first in such L 1quiry a;.1d is tne 'reare.tio::. of e. brief statement o f the A-llet:;ed f acts for tra11smi ss to the r e s:-,onde: lt, ad vis ir1.g l-lim of t Article of the Code alleged to oe violc.ted, pnd mr n.l l o 1 P .lW of <;he facts alleged are true , and a further of the :1os i t ion of the res:)ondent. shall also be furnished with a copy o f the •:od.e u.nd of 11L:.forrr.n.t io:1 for P c r so11s ch2.rsed v.ri ti1 Violati _,n o f L 2.d i e s 1 Ea1 1dhc..g Industry Code". S ectio:.1 9 : Admissio::1 of Violation. I f -1.clr:1its o f Code, but L1dic['.tes h e i s willins to in Jche future a:1d has m8.c1e rcstitutio:1 for v i o lrtioi"ls, corn:_Jlaine .nt shall b e 1otified of such L1 the case of a n em,loye8 who has been for filin6 n. connlaiDt r?emj1loyment aild r estitutio: : of any lost hlUst be a co:1cLi adjustme1 t. Section 1 0 : D eni& l of If the res=.)onde:1t r;_e:nies t h o fn.cts as alle_:;ed , or i f he e..ili,1i t s the facts but i;ckes issue as t o the o f the C ocie , or if h e assert s th2.t he is i.i.Ot S1.1bj ect the!:cto, or th,'1.t there i s a co11flic t of codes, or if the r e s-,ondent fo..ils t o s:;,tisfy the Corn:1 L '.i:1ts Cornr1i ttee that he i s not v iol2ting the Code, he shou.lcl be J. unsuccessful in se.id adjustment, the connln.int sh<' .ll be s e t :i.'or hce..rinL; oefore the laL1t s Com11i t t .c0 2:.cl both the and res:1ondent sh.:: ll be notified thvrcof. If, after such hcn.rin0 , the i s still unadjusted and or further i n terviews li:.::ely to facilitc:te adjustment, arrC\.i.1,_;er::lent s lt 1B.y be r"l.?.de to h ave a f i e l d <:ltent visit the res: 011clent . In case of doubt us to the m ec:.nint, o f the Code , to ot:J er facts, a;.1 official ruli
PAGE 563
-532If r esonden t f e .il s to Eti.:.s, c :: addressed him within a reaso nabl e tir11e a seco:c'id. for re)ly 1.-:rithin a stated sh::ll be ser.t birn 1J.Y re.._isterC'd mail. Tneren.fte r if no re])l y has been r e'-'e i -,red or L . f'j T cAse:; if inC.icc..t c s his umvillin0! less or lr-c:;: of L1tel1"ti o''l of or of r.12: ,..in :; restitution, the case shn..ll be to c. fiel0. for suc:1 f l l.l'thE'r investiga tio:n may be to detP rl\1 i i 1e the fn d die:;cst thereof. b) All ,rcvion s on the case. c) All ori....,in< l evid.c:-1cc, incluchn--= 2 .ffid.avits and re1orts of fi el ci c>. ce1 1 t s . d) of the l a ints Corrun i ttee . e) Sta temei1t s m aO.e the at he:.rin.;s or inter vicm, n:c1d c1n;j' written filed. h ir:1. f) A re,ort of the ttce tha t ondent was furnished v;i tl1 :1ot icc of the. cor .. nL ... int r:.n ex:-1le.nat ion of his obli ... J'.tion s in :ce s-H?ct to. the s'.bject matter of the connl ... int; a co e of the Code; a co:w of the Lrcdies 1 B < ndba__, I:-1dustry CoU.c for : 1erso:.1s Charc,e d ' . .ri t 1 Viol ;.tio;-:.s of the Code; a sU.i11r.1ar: r of the fe.cts with to the viol <'t i ol s fou:1ci by the COIDJ.')laints C o:nmi t t C'C , a.::1cl a:w other Jert inent i n.ct s . must e.lso be n o -ifie d of reference of c:my corrnl2..ii1t him to a h i__;her body for f:..lrther a.ctio11 . 9811
PAGE 564
-533Section 14: Procedure for E ani:.1i:.s Cor.iu1itceec:, the Labor Com: laL1ts Cor. !1ittee s:10.l l so a:.1c1 r es:1ondent. The res:1on CJ"lt shr•.ll 1)c e.dvise..:. o.fte:.. E':Y .ro r ' ic:. t e exPr:1ij"l2.tion of the chat unle"'s he 'n<'..s o.dc. i ti'J: ! e l fC'..cts to suboit o r he desil'es ::' re-hnt.rL1_; the case Hill 1,)e t o the lT.:.tional .Recover;)' Admi!1istrrtio ,_.ith < ' rC>o uest rction. b) I f tl1e res)oEde::t r e •J. ies -)ro--,e:.. ac.just men t has been made the cag e hall oe referreC.. to the C o m )lc: L1ts COil !ittecs where it oricinat8G... I f de:-: fur c11er f ;-cts, or e ancl per diem b asis equal t o that to the r. er.1bers of the Ladies 1 Fandbe. E -Industry Co c o:r-set t L 1 t --mdJer of conmlai:1t s 90 11
PAGE 565
-534 -filed with it, the number of complaints adjusted by it, and the number of complaints which remaine d 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
PAGE 566
-535X H I J I T D -1 Co!'lS t i b.J_tio:n EyI.a':rs
PAGE 567
-536CONSTITUTION 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 clie s • Handbas Industry havinG been orsanized in accordance vvi th the provisions of the Coda of Fe.ir Comyctitio:1 e . s a::::>"?roved by tl1e ?resident on I\'Iar :chl4, 1934, h ereby establishes and the follov-Ting Ey-L-:-.ws: 1. S ectio n 2. Section 3. S ection 4 . II 11Code11 as used heroin 111eans ti1e Code of iair ComlJeti tion for the Ladies' Ha"1dbag Industry as alJ:!)roved by the President o:1 I Jiarch 14, 1934 to t;ethe r with any additions to or moc:ificatio::.ls thereof, a.nd includes all :!Jxecuti vc and rule s and regulRtions VJhich have been or ffi3.Y hereafter be mad e t to Title I of the liatione. l Indust1iai R..;covcrji Act (hereina.fter referred to as t h e Act) by the or Ad ministrator r elatinb to or affecting this Industry. The definitions in Article II of the Code are made a )art hereof. 11Due notice" as used herein means actual notice or notice b y t e lepho:.1e or t e l e braph dispatched at least three days ::)rior to the or event f'Jr '.7hich notice i s required. Actual attendance at such or event, or a waive r of notice executed in wri or sent b y either before or after such meetins or e vent shall be dcem ec1 equivalent to " due :aotice." D e f i: n i tion of 11H . R . A. II -" H . ?c. A. II P . S used herein means t:1e lTetional 3.eoovery Ac:mi nistration. ARTICLE III S ection 1. The Code Aut:-wri t y shall hav e the ri::,ht to issue ceertifi-9811
PAGE 568
cate s of compliance. Ac;re;:;me:l t to corrDl y Y•ith the shall b e evidenc e d by si[nil;s; t hac:e certificate s i n substantially the follo•.-:-ir..:_, form : 9811 1h e undersig ned has reaC:. enc1 • fully Ul1cl.ers tands tl:.e t e rms a11d con tions a: Code of Fai r Cmnpeti tion Ior the L'lL...ies 1 !-i:::. J . 1cbac; a-::,_ o:oted e .ncl a)prove_d by tl e t:ra tor for I . . trial Re. c oYe r y on :.larch 14, 1 934 , and t?le arlop t o d by the CodJ t r Lfl.clies I EanCbag Ind1:<.stry o)Ursuant ?f'.;e Si-. ( 6 ) of.this form; and ;:;. ; rees a t all t.!.m3s to observe an.: com p l y : i th sucn c.nc'. tions an..::. a!lY oth..;r :re:;ul a ti O il s hereafter to be b J such Au t h o i t y , and the "L.'L11.dersit;n3 c L und.erste.nd.s t1w.t rit.;h t to use labels ado: ted ancl. to oe issued by this Cocle Authority sha.ll be conditioned. such corlt2.Jlianc c . The undersig n e d fu:rths r agr e e s to furnish such info ... mation to submit to such investi.:;ations and ins:9ections as the Coc.e .A.uthori t y ladie s 1 .Handbag Ind:o.stry :-.1!3-;)' to insu:ce the fai tl ful perfon.1ance of tl1 e oblit=}l tions a.ss1..uned t he o.ndcr as her e i n state0 . . .. • I.' • ,. . . . Th e undersigned h e reby a )plie d to the Cocl.e Authority lad ies1 Handbag for labels adop ted and to be issued b y t his Code Ai.-thori ty. Th e undorsie;ncd agrees that such labels, •:rh e n anci _ as issued, sh...,_ll b e attached only to han ba.3,s,' _•)Oclce tDook s and yurscs man ufactured b y th,:; a'_)_ . Jlicant or for h i s account, and tha.t such handbags, nnd shall oe made under the t e r m s and concii prescribed i n the Code and Regula tions ado•)t e i')U.rsuant thereto. -Th.:; -u.nderstand.s that all h?.ndba:.;s , pocketbook s and. )urs0 s manufactu:::ed by h i m or for his e.ccount shall b ear such labels. a .?:Plica tion sha.ll to R.ll labe l s tn be issu.ad b y tle Code Authority Ladies' Hand bag I nC:ust_.f t o the undersigned.. D a t e ------------------------ditnessed. by ---------------------Address of fitness -------,.--.•. Ear.1e o f Corr)Qration, ?a.rtne:1:shi:::> o r Individual Add.ress 'By Pro;_:>erl y aut:i::.o:;:i zocl officer or partner. (If corporation e.pply LGal.) S3AL
PAGE 569
-538Section 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 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. notice regarding the proposed selection of the successor members to the Code Authority. 3. The minutes of the meeting at which the selection was made. Section 3. Each group that has been authorized by the Code of FairCompetition 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 alternates 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 b y 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 i1Aember 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
PAGE 570
-539-l. The \7ill ? . labor adviser a consum e r adviser to the Aclr.1inistratio:1 I':i e mber (or E e m b crs) o f .:;ac h Code Authority. Tho labor and 8ons1.1.1110r Arlvisory 3 oarcis will immedi ately submit to the Arministrator lists of nominees qualified for positions. 2 . The ACtministration r.;er.1b0r vvill arranbe r:i th the Cod e Authority that t ese advisers have access to the minutes of all Code Authority meetings and of tha meetings of all Code Authority agenci e s or s ub-cornmi ttees. The Advisers are not members of the Code Authority , and i?ill at .... end. rneetin15s only upon 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, gaine d by virtue of their tion, strictly confidential. will confine their rejorts, advice, recommenuations, and othe r statements regarding these i!ldustries to the Administration of t he Code Authority, the Divisional and the a!Jpropriate Advisory Board. A.,_-qT I C V Officers and Committees Section l. The CoC.e Authority shall choose a Chairman vrho sl1.all preside at meeting s and exercise such other functions as may be delega tod to him by the Code Authority. Section 2 . Tho Cod v Authority choose a Vice-Chairman who shall preside at f'.ny moe tins at which the Chairman is absent or is disqualified for any reason, and shall possess the same authority at this meeting that te Chairman possesses. S ection 3 . TJ.1e Cod e Authori t J shall choose a Sccrstary who shall k0ep all r ecords 9.nd minutes of the Cocle Authority a n d all other matters of ,rhich a record shall be ord0 red by Code Authority. H e shall issue notices fer all m0etings. Section 4 . Th 0 Code Aut lority shall choose a Treasure r who shall safet;,uard and account for tho;:) funds of the Code A uthority, keep accurate and full records of receiyts and disbursements, render to the Code Authority an accounting of all transactions and perform such othe r dutie s as may be assigned b y tile Code Authority. S ection 5 . The duties of any officer may in whole or in be 9811
PAGE 571
assic,"1ed autho:ci t:r o:f t h e CoC:a AuUJ.or i t :r to an a:;ent or agency. S ectio"1 The Cor.e choose such conficlei1tial ar;ents or ace"1cies, 8.s it deems necessa1.y, i n order to carry out any of the; functions, ancJ. duties tec1 in it by the Code anc: shall arranc;e the comD;3!1SB. tioi-1 for these conficlen tial a6en ts O l ' Section 7. All and minutes of tho CoC:e Authority shall at all times be at tl1e disoos<1. l of tha Adninistra tor. The Industrial, Labor and Conrcum ers Advisory :Bo e .rds o f the :J3A shall Ut?011 approval of the A<.linL1istrator, have a . ccess to such recors, and shall have the right, u_p o : 1 reasonable notice, to appear before the Cocle Authori i:1 s ession to submit t? it, 9.ny criticisms, complain t . s or sug;estions; and i n )Urs-uanc e thareof, may a:tT) eal to the Administrator. Section 8.. r;I:he Code Autl1ori may a:p)oint and . provide for the expense of some of e .ll of the follo•:'ing stanclint; cor.-rmi ttees and such other corn mi tteos as it ua.y fro m time to time be necessary for carrying out its functions, which committees shall operate under the c :irection of the Coc_e t y : a) Fine.nce, 3udc;et anc. Label b) define SSJmi-skillecl worlc:;r c) 7-o provide regula tions r e garding i1anclicapped lJersons d) To tions for the safety 1 1eal th o f enJi)loyees e ) To study the f) To clraw up a E:;) To draw up a h) i) ceo tal:e To clevelo1) lJractices of hoQework wri tte11 e .greement contractors ancl b y-law s of coordination v-ri th other codes in(::_ustrie . l :r.;lannL1 g ;;mel fe.ir trade j) To estahlis:O. a 1..miforrn cost system k) 1) To drav r re.:;ulations ret;ardint; s tyle j_)iracy To establish a syste m for the issuance and sale of labels m ) To establish ro{:,-Lllations to 60vc:cn salos below cost n) To collect statistics and reports S ection 9. The Cod . e Authority shall have the p ower to remove from office any m .ember or mmubors of any subordinate agency createcl . by tl1e Code Authority if suc1 1 member or membe.L s a:p:pointed to it. It she_ll also have the :;_:>ower to modify tha func tions o f , or to terminat e the use of, any suc:1 a t;ency i f in its juc1c;men t such action is necessary for t h e prope:c administratio-, 1 of the Cod.e. 98 11
PAGE 572
-541VI S ection l. The ::!::Cinci:9al office of the Code A u'c!1ori ty shtJ.ll b e located in th3 City or' H e w YorJ::. Tl1e CoO.a Authority may -3-lso establish and maintain b ran.ch offic;;s it d aem s nec essary. Section 2 . The Cod a .Authority maet on the socond Thursday of aach mo::.1th at its princi:;;>al office unless otherwise d esignat8d by Cod e Authority. S ection 3 . Specle. l meetinc s of tha Cor. e Authori t;y-' may b e CSJ.lled by the Chairman tl1e Chairman tJ.1e written request of the s tra tor, his re:1rqsenta ti v es, and .Aclmini stra tion i.iGmber, or t.;o Industry Vlcmbers of the Code Authority. S ectic n 4 . A ma.jori t y of th" inc1.ustlJ' members (regular tatives or alternate s directed. to act as regular r ..... prosentativos) of the Cod e .Authority shall constitute R quorum for the tran s -action of business. J o detcl'mina tion of the Cocla A1.1thori ty shall be made without the vote o f a majo:dty i n m..1mbers of the CoG.e Authori'-:;y. I f a 0UOl'UIJ b e -?r e sent Ht any t;ivcn meeti!!g and a majorit-of such quorum s.11 affirmative l y e):Jrove a bive n mat t a r , tJ.1e s a.::e shall beco ne effective •he n a:1cl. if therc:: shall be vad and filed i n Y:ri tin in the office of the Cod.e Authority ass0nts tLer ato which adcl e d to the number in person shall constitute a majority of t:i1a ind.ustry members of the Cod e Authority. Section 5 . Co;::_e t y , all subord..L1 a t a agencies, and all Indus trial .Aclju s tman t Ar.;a-lcie s crae tad b.,-the Cocle Au tno ri ty, she.ll a compl e t e r ecord o:C a t all ai1d certifie d co:?ies of minutes anc,_ other and cla. ta sl-:.e.ll be:: filed. as a permanent rocord, B . t the busine s s office o f the Code Authority e.nd with tho AC11nini s t :'B. to l' o f t11e 11. ;t. A . S ection 6 . Pen.11an6nt r ecords of the filed v i t h the N . :rt. A . shall b e availe.bla to the Aclviso ry :Boards of the 1-T. :2. A . subject to the ap-yroval of tha Ac.rninistrator. Publication o f informa tion thus s ecure d shall not b e made exc ept with consent of Cod e Authol'i ty. A:rtTICLZ VII The Cocla Authority shall establish Industrial Adjustment Agencie s for t ila o f h.:::.ndli11G dis and labor S ection l. The CoC.a Authori t: shall alJ Doint e . T l'ade Practice Com --. . plaints Committee of t h ree me:-.1bers. .AdmL1istration membe r shall be a member of this committee without vote , Tiith a veto subject to r e v iew b y Admiistra tor. An executive secre t ;::-y a.nd legal counse l s!1e.ll also be e.s either members of committee or as 9811
PAGE 573
-542-This committee shall handle trade practice and disputes in the first i nstance, and adjust t hem in accordance nith the affected provisions of the Code, and. L1 vii th the }1rovisions of the National Industria l rtecove17 Act. The functions and pow ers of t his com n i t . tee rna; / i n whol e or L " uart b e d e legated., under authority of the Code Authority, to confic.ential agents or agencies. S ection 2. Th e Cod e Authority , i n accordanc e with Administrative Orde r No. X-12, dated Utarch 30, 1934, sl1all aj"Jpoint a n Industrial Relations Committee of six mamb 3 r s , of t h ree industry merabcrs and three la"bor memb e r s . The Aclrninistration memb e r shall be a member of this out vote but with a v eto pow3 r subject to r eview b y An executi v c secretary and l e(;e l counsel shall also either memb ers o f tl1e cornmi ttee o r as e m ployees. committee, yrith the Administrator. be au,Jointed as .... This committee shall hancU 3 labor COil1J.Jl aints an0 . labor d.isputes in the first instance a:1d adjust tll.Jm i n accordanc e Yvit h the affected provisions of the Code and i n a . ccordc>.nce v.ri th tJ.1e provisions of the lira tional Recovery Act. Th e functions ancl. lJOV!ers of this Corn•1 i ttee mE'.y in whol e or in p2.rt be clelega ted. under authority o f t '1e Cod e Jluthori t y to confidentia l or agencies. S ection 3 . The committee to devt:llO l J i nclustrie. l and fair trade practices, which moe t 7 i th the trade : p r actice coDmi ttee 1..mde::c such co d.es e..s rJay be r elate d to the inc:ustry, for the }JUrpose of formulating fair tra.cle practices to the r elationships b e t vwen :production and distribution employers under t h i s Code and unde r others, to the end that such fair trade practice s may be to the Afuuinistrator as amendments to this Coo.e and such othe r c odes. S 2ction 4. Pursuant to Article VI, S ection 8 ( d ) of the Cod e , the Code may use such trade associations and other aGencies as it deems Ilroper for th.;; carrying out o f any of its activities provided for h e r ein e .nd to pa;y such trade e .ssocia tions a Gencie s the cost ther eof, provided that nothin6 her e i E shall r elieve the Code Authori of its dutie s e.nd. under t his Cod e and that such trad e associations and a t;encies shall at all tines be subject to 'id the') orovision s hereof. A::tTICL 3 VIII S ection l. The Code Authori may include i n its exJens e accounts all nece ssar y and costs of code aC:.mi nis tra tion. S ection 2 . 'rhe o f aclministerin.::; this Coc.v shall be assessed by the Co<.le Authority 8.(-;a inst all 1:.1embers of the inciustry , subject to suc11 rule s and regulations !3.-S t:1e Acl.ministrato:r a'lJ'iJrove . 9811
PAGE 574
-543-Secti m 3 . Th e Cod e Authority shall a. detailed budget upon which the assessment sr.all be b8_sed. Pursuant to the Code, the budt;e t ano_ :plan of assessment mus t b e a_)!Jroved by the Ad.r.linis trato r . budt:;et anrl :plan of assesr,ment fl1..all b e avail able to all of the industry and membars, as dasire, sh.'1..ll be give n an o:pportuni ty to b e heard on tne m ethod n n d amount o f assessment. Section 4 . Purs-uant to Article Vii of the Cod e , and subject to the 8.p)roval of t i t e Admi nistrator, t-'-J.e CoLle Authority shall have the exclusive ri.:;h t of this inc:ustry to issue and s ell labels to the memoers ther eof. The Colle Aut .. 1ori t;y shall establish rul.ss a n d regulations and mac h i n<:;ry for the iss-u.ance and sale of and the insyection, e :mrnina tion s1.1.pervi sion o f the lJractice s of mer,1b ers of the indus try_ usi nt; sucl1 labels for the :pur:!ose s o f ascer tainLl; the ri:;ht o:l' s uch rilenb ers of the incms try to the con ti11u e d use of said labels; or purc :r.asors in on sai d labels; a n d of insurL16' to L1di vi duel memb e r o f tJ.1e inc".us try that the symbolism o f sai d lab.sl v rill b e maintain.sd o;r virtue of corrrplianr,e with the of this by oU:.er mer.1b ers of the try using saic1 le. b els. S ection l. Th e Cocle Au tho_ i t y shf>.ll t o a eli sin teres t e d statistical agency ( t l i s may 'be a Government 3ureau) vihich sl'1a.ll collect information anC!. statistics f rom membe r s of the Incl.ustry for the compilation of as t o hour"' of numb e r of v.rorkars, t;::_)cS o f \-,orl ars, :)rocluction , type of m erchanclise produced, volume of sales, rnathods of and any other matters, L1 accordance L1e of t'.e Code and deemed n e c essary by the Code Authcrity and the directions of the Administrator ther eunder . I n adcHtio::-J. such statistica l info:tmation as the Ac. ministrator mny deem n0c essary for the lJUIJ.l ose r=>cited in Section 3 ( a ) of the Act, shall b e furnj_ shed. t o sue :: F e d eral and Sta t e agencie s as the Alli11i n i s t ra tor ffi?.y cle sig n a t e . S ectim1 2 . Such s ta tis tics e.nd information, exce= 1 t as o t h3 n--i s o may b e t l1is Article, sh.'l.ll-be confidential. f o 'ublica tion ther eof L1 e .ny m anner s:!1all be macl.e to anyone, othe r than in Sl.u"m'Oai"J form an;l c , r i thout indi vid u E . l iden t i fica tion; )rovideLl, however, trat any of such statistics and i nforrnD .tion sh?.ll be made a vafiD .l\.le to the stra tor. Ai1Y r!lcmber of t h e Coci.e Aut!10r i ty or office r or ac;en t the r eof who discloses such i n violntioi1 of this section may b e r e moved from office b;7 t h e eith-.;r on ovm i nitiative or uuon compl2.int made b y any ')Li.rt , -affacte d b y cUsclosure • • 98 1 1
PAGE 575
-544ARTICLE X EX.CiPTIONS , EXJ?.i?TIOlTS, MODIFICATIONS AHD Ai.:::::.ND!vl3HTS OF C Oj)E. Section 1. Definition o f 11Interpret.o>.tions11---This term includes all rulings on t h e m eaning of language of a code where the intent o f tha t language is in cloubt; i.e., where a l':n o v . r ledge of the surroun0.ino circumste.nces and o f tbe general :Policies of N . 3.. A . on the lJart of the :;>erson making the rulinbs, fails to remove the necessity f o r a decision o n vrhich reasone.bl e men , equally vrell informecl., m i ght differ . i.'ihere no decision is r e quired o n which r easonable men , e quully well inf orrnecl, m ight differ, the ruling is not o . n but merel y an ex:!lana tion. Sc;ction 2 . Definition of 11 ::=::xcel)tions" and t e rms include all whereby an i ncli vidual, group, or class is r e leased from the fulr oneration of a prevision of a code . Section 3 . Definition of 'll'A o difica tions"--:rh i s t erm includes all rulil1gs whe reby a code i s mne :ndad b;y adci.il1b a provision Glr changinb or omittinb any thereof. S ection ::. Provisiona l In t er0re t a tions---.Then t l1e immediate course of action of the seekirlb an inter,:;retation may 0.eyend on the answer given, the CoC..e Auth o rity she.ll t,ive a provisional rulin; oil the interoretntion requestecl. At the same time, it shall b e mad.e clear the. t the rulin[ so 6ive n is subject to review by the U . 3.. A. This provisional ruling sile .ll not be circula::cize d throughout the Indus try, but shall be t:;i v e n soL; l y fo:t guid.ance cf the particular person or l)ersons .involved, i ncluding any inte restec. party or crou;,o who lJe affecte d by :1o t b e in!; irnmedi a tely informed of the provisiona l ruling . The tra:nscri:Yt o f such e . interpretation she.ll b e sent to t}J.e iJ. ::t. A., rJi l l notify the Authority re;arding the a:o:•_)roval, disapproval, or m odifice.tioil of tha interpretation as g iven. Section 5 . Requests for Imme d i a t e Int e r ) r etations---.-n.er e the final rulin.s on a n int,;:r--;)retation must b e me.Cl.e a ncl a provision al rulin g by the Cod e Authority is :c.ot suff i c ient, the Cocie Authority shall com.rmmicat e v 7 i tl1 the lT. : . A . anc: requbst an immediate ru.lint; on the Section 6 . Final rulings---n o fine.l nllin'-_ _ s on rna tters cove reC. by Sections l, 2 and 3 , of this Article may be made except by the Admi nistrator, afta r such hearin.; as he may require. The Coc.e Authority shall G i v e the w i dest publicity to final rulings. Section 7 . Procedure on and 3xeill)tions---In any case in which a m embe r of the Incl.ustry believes that the ope:cation of the Code m1.C::.ue hardshi p , or is not carrying out the pur.pose of the Act, such m embe r may set forth such facts i n a petition to the Code Authority requesting a:.1 exception o r from a specific 9811
PAGE 576
--545-;;rovision o f the Cod 3 . T11 e Cod a Authori t:l , within days 8 .ft3 r suc h _}eti tion i s filo d , s } :: . 1 1 subm i t i t , t oget h a r with its fincling s anc r e co mrnenda t ions to tha AO.r11i n i s t:te . tor. I f the Code A u t hority fB.ils to make f i n d i n g s and r ecornr!l ..... nO..ations wit h i n suc h o r i f i t ..:i.J.s m i s s e . l o f t !1a :9a t ition , suc h m embe r of the Inch.1st:t y r n a.y :-9et i tion the A c 'ullin i s t r ator for an exceiJtion o r exerrntion . S ection 8 . o n Amen
PAGE 577
-546 -for the initial i ssuance of such rebulati,ons.,ARTI XI I I POW3RS AUD LIABILITIZS OF CODE AUTHORITY . . S ection 1. Non...liabili ty of Cod e Authority Membars--Nothing contained in the s e J3y-la.ws shall constitute the m embers of the Cocle Authority partners for any purpose . Nor shall any member of the Cod e Authority b e liable in any manner to a:ayone for any act of any othe r member, officer, abent, or employee of the Code A uthority. Nor shall aay membe r of the Code Authority , exerci si:"lg r e ason.Etbl e cliligence in the conduct o f his duties h e r eunder, be liabl e to anyone for any action or omission to act under the s e By-laws, or under regulations adopted pursuant to Article XII of the s e By-laws, except for his own wilful misfeasance or nonfeasance . Nothiae; herein shall r elie v e any member of the Cod e Authority from dutie s or r e s ponsibilitie s upon him by the Cod e . ARTICLE X IV EI'FECTIV::G AJ.EiiDMSNTS O F BY-LAWS S ection 1. Zffective D a t e---These :By-laws shall b e come effective H h e n approved b y the A..d,mi:nistrator. S ection 2 . Amendments to 3y-Laws---Amendments to these B y-lavrs may b e adopted b y a 2/3 (tvv o thirds) vote of t t.e Coc:te Authority, and shall b e come effective vrhen by the Administrator. ARTICI3 XV G:MGRAL PROVISIOIJ S S ection 1. Subordination o f By-lav1s to Coc1e and Act---1J o provlslon i n the s e By-law s shall b e so e .ppliad as to conflict with any provision o f the Ac t or o f the Cod e . S ection 2 . Availability o f Jy-laws---Th"3se J3y-la1flS a 1d all Regulations and all amendments to suc}l B: r-lD.ws ancl Regulations sh ... .:::tll be made available to all m embers of the Inc.ustry. 9811
PAGE 578
9811 E X H I 3 I T E-1 Brief-Nationa l nand As sociation
PAGE 579
-548EXHIBIT E-1 B?..I EF O:b' T P.E NATIONAL BANDEAG & ACCESSORI:CS SAL.cJS.;i:l:1T1S ASSOCIATIOl R es-pectfully submitted by The Nationa l & Accoessories Salesmen's Association re-pre senting the salesmen in the l 1andbag and. accessories industry has among other objectives and -purooaes tb. e improving and aidi!lg a spirit of coo-peration between emnloj-ee ancl : Irlfl.nufac.turgr, cooperation with the code authority and the N.l:la and further the promotion of neace and harmony in the industry in said r e l ationshiP, thus resulting in putting the industry and those who deriv-e their living frcim it back on a sounder and more profitable basis. Now, more than ever, are the 1 problems the salesmen 1 s problems insofar as it r emains in the povver of some 900 handbag salesmen, who travel the states to patrol their territories a n d aid in enforcing the handbag code. Prior to 1928, the salesmen, c ollectively , were a highly respected of men, upholding the dignity of calling earning a substantial livelihood for the mselves an-.1 th:ir fatnilies, and doing human service for their employers who reaned the financia l rew rd. During the pre-deuressicn d :lys: l t w a s of for a handbag salesman to represent more t l 1 a n one manufacturer. This c onditio n 1 ,vas made possible, not so much beccuso businesf cond itions wer e good, but due to the f act that the of commissions mor e munificent. In years prior to 1928 , a t least 951 of t h e lv=mdbag salesmen made money for themselves and their errmloyers becau s e their commissions ranged a-pproxi mately 101 and -.rds. However, since that time, conditions have reversed and have not bee n able to eke out an existence. Not only were the r R .te of com missions higher but in nearly of the cases t h ere 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 regular on L1e nru t of tne manufP-cturers to do away with this former ethical way of doi::1g business ant employing salesmen. As a result of these tactics, d'l' . e only to t.,_e manufacturer 1 s heartless attitude to'Vard his salesmen, the salesmen's e arning pow e r has been reduced so t hat he is todc..y at the uoint of desper ation. There f ore, these unfair 1;r act ices on the part of tl1 e m :mufac turers, in addition to the fact that the volume b a s beco::1e greatly r educed have brought about t h i s -protest and request for a confPrence to take up these matters in order that they mi<:!:ht earh a livElihood for themselves and for their families to which every American citizen is justly entitled.
PAGE 580
-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 ye a r gross. The aver age 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 figures of $100,000 up t o 1928 is fortunate if his s ales today are $50,000 gross. We find instead of receiving to shinments, he is fortunate if his shipments are 70% and he is paid, in the majority of c ases, a co r runission of or less on net sales instead of gross s ales, as indicated by the annexed schedule of r ates 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 embodies the selling cominission in the cost of his product and, should take anything out of his o w n profits. However, on the other hand, the manufacturer who advances his representative a drawing account against the cut finds that at the termination of the year, his s alesmen 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. working under the prevailing lower rates of commission, the manufac-turer finds that it costs him to more. This_naturally it necessary for the manufacturer to take an unnecessary loss, 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 of the salesmen carry from 2 to 5 non-conflicting lines in order to earn a meager livelihood. No one man c a n 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.
PAGE 581
-5503. Salesmen in the industry should all receive uniform commissions on gross sales in accordance with the following schedule! . All merchandise. and to including $9.00 a dozen, 61 commission sales. ' 1 All sold from $9.25 to $30.00 a dozen commissions on gr0ss sales. All merchandise sold from $31.00 to $72.00 a dozen 10% commission on gross s ales. All-merchandise sold from $72.00 dozen and up, commission on gross sales. 4. Salesmen should be guaranteed at least On all confirmed orders in their territoties, except for conditions b e yond the control of the manufacturers s1,1ch.as acts of God, strikes, et cetera . 5. should be given m1.p1mum drawings against commission of $35.00 a week to loca l city and .min'imum of $75.00 a week . 6. Salesmen s .bould receive Gob. comm;issfon on all close outs, jobs' lines' et c ,etera. 7. That salesmen be given mont hly 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 w i 11 not decrease tl1e manufac turers1 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 line, the jewelry being bougl1t in many by the same buyer, either in the same denartment as handbags, or and considered an accessory and luxury equally as imnQrtant as handbags. . Comrnissions in the costume jewelry business have never at any time been decrea sed and range from Bch to 15% plus, in spite of the f act 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 the majority of the manufacturers in the industry have been guilty of "chiseling" with commissions for price cutting and other unfair trade nractices. 9811
PAGE 582
-551-In vie of t he f act thAt the manufActurer s will shortly begin to plan their ne''7 lines and inasmuch as the majority of the salesmen ould be leaving for the road o n the first of J anuary, it is urgent that a conference be held immediately between a representative of t he co de authori t;y and a committee r enresenting the salesmen of the IT.n.tional Handbag & Accessories S alesmen's Association, with Mr. Pierson the government representative on the code authority who h a counselled such meeting. 9811
PAGE 583
-552SCHEDULE "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 10 .,, 775. ...,? II 2 II 3 71_ 8 II 4 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> 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 5 5! 2 " 27 1 71. 7-f> 7 1 II 28 5 5 5 7 3 10 IO II 29 5 7 1 10 11 30 8.-" 31 It 32 6 7 { 98 11
PAGE 584
9 8 11 553E X H l ;Q l 1 F-1 List of O r ders issued
PAGE 585
3 3 2 1 Admi n . Admin. 3323 Admi n . 3324 Admi n . ( D i v.) 3325 A dmin. ( D i v . ) 332 6 Admin. ( Di v . ) 3 32 7 Admin. ( Di v . ) 3 3 2 8 Admin. (Di v . ) 3329 Admin . ( Di v . ) 33 2 1 0 Admi n . ( D i v.) 33211 Admin. ( D i v.) 3321 2 A a .min . ( Deputy ) 0321 3 Admi n . 332-14 A d m i n . 332 1 5 .Admi n . ( Di v . ) 3 3 2 16 Admin . (Di v . ) 3 3 2 17 Admi n . ( Di v . ) 33218 Admin. Officer 5 54-LAD I :S S 1 HAliDBAG I IIDU S 3 1 4 3 4 4 -27-34 5-10 34 5 25 3 4 5 2 5 3 4 5 25 3 4 App roving code Ap"9oin t i n g Fhi l i -o L ubline r m e m . be r of Code Au thori t y , ( n o minC'.ted b y Lab or A o .vi sorr B oard) . 0 . : : . Pearson m e moer, i7i thout v ote, o f C ode Au thority Den ying ex:em )tio n to G . R. Godfre y Co., G a r dner, i , 1 a s s . Den : ring t o HuG.son L eathe:'"' Goods, I n c . , N yacl: , lT. Y . D e n y i n g exem:ot i o n to P aragon H o vel t y Bag. Co. ; Uneecia Belt Co., I nc., }' e1.70 U l ' g I IC'n d Ba{'; Co. , Inc., & Licht & Inc., all o f i J e nburgh , y . 5 2 5 3tl-:Ue n ying exem p t i o n t o S t r a nc t L eathe-r Goods Co., Inc., Ne'7 Y orl-:: Cit'' 5 2 8 -34 A::_)p r ovin.g It e n i z Gd :Ju df;e t a n d Eo u i t a b l e Basi s o f C on t r i butio n for ? i s c a l Y eP . r 3 26 3 4 to 3 25 3') . 5 29 -31 Rotice of t o File Objections (Itt?rlize.O. and. of Contribution) 6 6 34 I nte:;:--} .,rb ta.tio: : r c : Art. V , S e c . 1 0 6 9 -34 Sta-r in.cs Orc :.er } : o . 3J2 8 n 1 i c h a o1Jroved Buc_get o . n d Basi s o f Co: 1 t r ioution. 6 1 5 -34 lJotice o f Opportunity to be HeaTC. (L:o difi c a t ion Pro"Dosal) 7 3 34 A-J p r ovint; . A.mendrn c n t l . o . 1 7-16 34 A p p r o v in.g: Budget a n d Jasi s o f C ontri butio n for neriod o f 3 2 6 -34 to 3 26 -35 7 27 -31 9 8 -34 1 ') 6 3 4 T e r mina ting conferre d b y Par. III o f Administrative Orc ,er X 3 6 . Acknon ledging a n c 1 0 mem b e r s of code authority A p provi n g p l a n o f organi Z P . t i o n and ')roced.11re of Tracle Pra c t ice. C oT"lp lc:ints Comr1itt e e , c onsisting of 4 m embers, and. officiaJ.l-r 8 . uthorizi n g sai d Committe e to :9roceed 1.1i t h adjustment of tre. de Dractice complaints. Appr oving C ontractors' Agreement s ubmi tte c . b y Coo. e Authori t 3 r 3321 9 Division 1 2 22 3 4 Adr.lini strat o r Appro;ring _ B y -Lau s of Code Authority 332 2 0 Admin. 1 2 3 5 Of fice r 3322 1 Division 1 1 6 3 5 Admi nistra t o r 33222 De puty Administra t o r 33223 Admin . 5 6 35 Of fice r 98 11 IsiQ o r L aderma n Labo r of Code Authori cmd Orc3_ e r N o . D e n :rinc exem: 9tiol: t o i3oscu., I n c . , Marion, Ohio . o f Opportuni t:.? to b e H e a r d (::3udet and BC'.sis o f Con t r i bution, l : Iarch 26, 1935 t o March 25 , 1 936 ) 3 I ndustry member s of Code Authority 1
PAGE 586
33224 Admin. Officer 33225 Asrt. to Admin . Office r 811 -555LADI3S 1 IDJillB.AG n .r:D1JST:::tY (Continued) 5 -23-35 .Anoroving Amen
PAGE 587
9811 -556X li l B l T G-1 Notices of Hearings
PAGE 588
-557-J. e gis try No. 236/1/01 ''otice of Henr vinr:: 1Jr). December 19, 1934. A -roroved Code LADI3S' I (Amendment The abo1r e Industry , as reurel';nete d b v the Code Autho:-ity, has sub TTlitt e d r:tn annlicA.tion for amendments to the Code of Fair Cmnpetition for the Ladies' HfJnd.bRg Industry b-r runendin g such Cod e as hereinafter set forth and as su_bT"li tte d in the for r>mendments and sFtio Code mav, pursuant to the He" ring h e rein'"'fter r e f erred _ to and/ or an;v subseouent henring, be amended . in the for!"'l no, r subrr1i tte d and/ or b e amendecl in couch fnrrn, \'lording, scone b y one or more othe r or similr>r orr:lendments, PUrsuant to informntion or consid.:r.8.tirm prOD"'rly b efore the NationaJ Industri,'11 T.?.ecovE r y in such R Pcords o r othe r1""ise , in Any .. o?rticul0r : :-;ennane to the orLe;in,ql nrovisions of said -orouo sed nl!lendrlent submi ttr-'d . . The -orouosed in such aD' 1lic tion are ,qs s e t forth in Schedule "A", attache d . h e r eto .:=mr h P :re'o7 mnr'e a 118rt h ereof. No-riCE I S tr"1-=!J'! thr t ., Dubl ic He"'rin.a on a m endments 11 be C'lnducted br :Jenut-; H8rrr S. T;err,r, beginning !'1t 1 0 :00 A.;-., on -ednesda:-:. • , 9, 197 .5, in 3:<..oom 20 6 2 -66, DeDArtment of Com m erce -Ashington, D. C •• a nd cantinued until com n l e ted. A n O PPortllili t ' r to b e he,.,ril (eithe r in urrR n n n r by dulv n.uuointe d reuresent ative s either D v 'lr o;r sendi''.g TTi.tten o r t e lee:;raphic stBternc n t) m i 1.1 be g i •rr:-n to p ersons or groups , ,h o c a n shon subs ton interest as warke r s , employers, cons u _er s , o r other,-ise in the effect of any provision of the nroposed Those vrishL.1g to b e hePrd :r1ust com-oly witn the foJ.lo,ring simule requirements. 9811 ( 1) .A , -Ti t.ten on t e levraphic request for an opnortuni tv to b e hePrd r:1ust b e filed. b efore noon on T u esdny , J anurtry 8 , 1935, the DeDutv Ad m ini s t r n tor, Ro'l":l of Co-,•"lerce ui lcling , C . ( 2) Such reouest shall the nRme of (;:)' cnv p erson s eel r ing to test if'.' in the he ring , (b) the n<::r sons or g r o ups rrhom he renrese::n.t s . (3' Such out arP;UJl'lent, a vrrord.ing ; or ( 2 nordin,g . reuuest shall contc:.in !=> stAt ient uroposal: ( 1 for Rnv ch?nge in any objections to chAn ges in the forth mith the d efinition or definitirm or ( 4:) . .\t the Dublic He'"'rin.rrs, all Dersons a r e as nesses, and shall on" [-lno not .q,r e;u m ent. .--rit ten briefs o r a r.e;uments TTJ.RY be file d but orP ] uresentations .... ill b e
PAGE 589
-558 to stRtements 'only. (5) In the d .iscretion of the Deouty Administrator in chP r c e of the Hel=lring , p e rsons 111ho he.ve not comulied with the requirments of ( 1 ) , above, mPv b e :oerrJi t ted at any t i "'le nrior to the close of the to file nritte n containing nrouosa1s for, eliminntions f rom, to, or <'dditions to the defi'Tli tion or wor o ing s u p ! ) Or cled b y u ertil7-ent inforMPtion or are;UJ'Tlent. Such m u s t b e conde nsed PS much Public He..,rings are solelv for the >urp ose o f obtainin.o: in the most direct manner the f acts useful to the Deouty 1\.dministrator, n 0 P rgu. m ents nill be h e Rrd o r at this u euresentRtion of int e r ested parties by attorneys or sueci2lists is uer!'lissibl. e , but is not to b e regarded ns n ecess:-:lr y . I11dustry, "'"'orkers, Rnd the cnnsu.nint?.: uub,_ic 'Wi 1J. b e r e p resented b y speciP. J emoloyed OY the Ci;O,TE?rn.rent. . .. 1 'Ta.tional RecovPry .3oard , Barry S: :3 e rry, ' AdP'linistrator. 'iy : l\.. HarriMan, Achinistrative Officer. ( :r . B.: 9811 'To Code Authorities and rr:'r d : e and Inc1u3tria)_ AssociB. tions _li.f-:;.encies: The above contains n otice of ossiole action in mhich y0ur membe r s or other nrrties 1rnown you you r1av . o e vi tall:v interestEd. You Rre ur;ed 'to eJ erci'se reasonabl e effort to C P USe the subject matter to b e c a lled to their attention.) ' I . I. ,
PAGE 590
-559SCHEDULE II A" PROPOSED AM:SNm,;E T S : =:i:O THE LADIES' HANDBAG CODE Art1cle II, Section 1, shall be amended b y inserting the words 11 shopping -bags11, 11bRti1ing bags", 11hRnci.kerchief bags", 11kiddy bags", "vanity boxes11, 11cosmetic bags", "utility bags", 11knitting 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 b Rgs, utility bags, knitting bags, manufactured of any material .of any kind or nature. T'ne term shall not include, however, the manufActure of handbags, pocketbooks, -purses and mesh .bag s manu fe1ctured in whole of metal." Insert a nevr section to be known as Section 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 T o member o f the in dustry shall imitate or copy, o r c ause to be imitated or co pied, any design original in its application to any product 0 f the industry, without the consent of the owner thereof, if: 11(a) A d.ravrring, photograph or model of s aid design has been registered with a disinterested and impe1rtial agenc;.r to b e designated by the Code Authority with the approva l of the Administrntor. In registering such design, the registrant shall indicate clearly the particular or particulars in which such design is original in its application to any product of the ind.ustr;,r, shall, in ad dition, submit a sworn statement in which he certifies that to the best of his knowledge a nd belief, such design is in fact original as aforesaid, and shall s pecify 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 the registrant. 11(b) Said design or s a i d nrticle to which s aid design is applied or in which said design is embodied bears the mark 'Registered design' or 1Reg. NRA Code Number', ;md the date of registration. "(c) Frovided, that tne prohibition herein against piracy of any design shall expire six months from the date of registration thereof. "(d) Any plan for registering of des i gns nnd this Section effective shall have t he approval of the Administration. 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 effort has been exerted to rumicably settle 9811
PAGE 591
-560such differences, the Arbitration Board shall submit to the National Industrial Recovery Board in writing a statement setting forth the facts pertaining with recommendations as to the desired action to settle such differences. "(f) The decision of the National Industrial Recovery Board 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 per bag is made to cover the cost of materials and the labor on such repair. N o member of the industry shall pay for apy of the forwarding charges on such repair." 9811
PAGE 592
-561-NATIONAL :aECOifE.RY A:UI.IIlU STRATI ON Re"'istry Eo. 23'6/1/01. .FebrUary?, 1935 • Oode 332 Notice of Hearing: Ho. 367-F. LADIES' llJDUSTRY (Al;nendn ent Proposals) The aoove Industry, as represented b y the Code A uthority, has sub mit ted ar.. 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 set ancl_ as submit t e d in the application for amendt1en ts and said Code may, pursuant to the Hearil).g hereinafte r referr.ed to. ,fllvi/or any subsequent hearing, be amended in the forr.1 no11 sub. mi tted or. be amended in such form, substance , 1.7ording,, a.YJ.d/'or scope by .one .or more Dther or similar amenfu uents, puTsuant to information or consideration properly before the No.tional Ind.ustrial Recovery. Board in such Hearing Records or otherui se' iri e.ny reasonable particulp,r ger::nane to the orig ,ir:.al provisions of said proposed . ainendmen t a's . submit ted. The amendr!re-nts )Jrdl)O sed in .. _sucri' 'aplJricafi'or(.are ... ser forth in Schedule ".A,II hereto anct hereb;:,r rnade.:.a . part _hereof. Additional of such .. . . at the offices of the National Recovery AC:lrr!inistration., Room ;?:Pl6 . , .. of Commerce Building, Washingt9n, D • . c. :, ... : 1TOTICE li HE.!iEBY GIVEN that a Public Hearing on t hese amendments will be conducted by De}JUt;}r Aclministrator Walter i.Iangum, beginning at 10:00 A. l .I., on Tbursday, .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 yerson or by fuly appointed represento.tives either by appearance or qy. sending :rrri tten or telegFaphic s .tateme'rrt)" Tiill be given to persons or. groups who can shou a substru1tial interest as uorkers, employers, consumers, or o the r nise in the ef:ect cf -any provb3ion of the proposed amend.ruents . ' . . ,.,. Those 1 . :ishing to be heard must comply rri th the i'ollo':T:bng Simpl e requirements. (1) A uri tten or telegraphic for an OP1 J O J :>bm.i ty to be heard must be filed before noon on Wednesday, February 27, 1935, ,-Ji th the Deputy Administrator, Room 4035, of Cornnerce Building, Washington, D . C. . . (2) Suc h request shall state t h e name of (a) any person seeking to testify in the hearing, (b) the or groups rrhom he represents. (3) Such shall contain a st-atement -setting forth ui thout argument, a proposal: (1) for any chanb e in the defini tiorr. or. or (2. ) any objections to changes in tho definition or -v.rording . (4) At t .he Public Hearing, all persons are as rritnesses, and present orally facts only ru1d not argument. Uritten briefs or arguments be filed but oral presentations uill be confined to' factual statements only. 9811
PAGE 593
. .. -562-(5) In the .. oi' t1;e .. De YJuty Adminif'trator in charg e of the Hearing, persons v:rho h ave not complied ri th the rea_uirenents of (1), above, may be . . at any tim e to the close of the Hearing to file written state"lents. •ontainirtg pro:ooso.ls for,. eliminatirms fr'om, amendments to, or additions. to. Cl.efini tion or wording. supported by pertinent infor!Tl ation or argument. Such written sta.terrients must be condensed as much as pos.si ble . .. Public Hea .ring s a re solely for the purnose of obtaining in the most direct manner the facts useful to the Deputy and no arguments will b e 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. l'or1:-:ers, and the public will b e represented by special advisers by the _Government. National Indust'ria. l Recovery Board. 7.'al ter M angurn, Deputy Administrator B Tr' . ' A H . . . y: •.. • • _arrlman, 'Administrative Officer. (N.B.: .TQ Code Authorities and Trade and I nd u .stria1 Associations and AP,encies: The above contains no'tice of n 'ossible acti .. on in your . . members or parti'es to you vi:ta'lly interested. You are urged to every effort 't o cause the subject matter to be called to their_ SCHEDULE 11A 11 • PROPOSE D .AMENDL!ENT& ... CODE OF. F'AIR COH PETITION FOR . . . LADIEs ' H.AliDBAG I NDUSTR:Y . I III, Section 2 shall be amended to read as follo"'s: "No person in shipping, clerical, oT office 'VoTk, unless he is employed in a managerial or executive capacity and earns not less than thirty-five dollars ($35.f'O) per wee k , shall be permitted to in ex-.. cess of forty hours per week averaged over any one month period; uro-I vided, ho wever, that a partner, officer, director, or stockholder of a 'member of the industry' eng a ged. in productive labor, shall be. consic.ered e employee for the purposes of this code, and shall be subject to the labor thereof." Secti0ns 2 and 6 of Article IV shall be deleted.Article-VI, Section 8 (c) shall amended to rea d as follows: 11Each of the Industry shall keeu accurate and complete records of his, their or its transactions in the Industry in respect to wages, hoUl of labor, conditions of number o f emnlovees and other necessary for the effectuation of this Code, and Title I of the Jational I1 dus trial Act. "Each member shall furnish accurate reports based U!: such records concerning such m atters ,.,hen required by the Code Authority Ol the National Industrial 3oard. If the Code Authority or the Natic.i Industrial Recovery Board shall determine that doubt exists as to the accw. 9811
PAGE 594
5 6 3 -of any such renort, so much of the uertinent books, r ecords and pauers of such m e::Jber.: " ae may be required for the verification of such renort may be by an agency agr eed uuon the Code Authority and such meMber, or in the absence of an by an agency anuointed by the Code Authority and. a:u1Jroved by the 17atioJ?al Inclustrial Recovery Boa rd. 11If a r:ember of the Industry shall f nil furnish accurate reports concerning any of the foregoing matters 'l'l'hen required by the Code Authority or the NationA.l Industrial Reco rery Board, such shall ma1-:e available to an a gency appointed by the Code Authority -rfi th the anuroval:_ of the National Industrial Recovery :Soard soTTluch of the nerti.nent books, records and papers of such member a , s may be required by the Code Authority 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. 11In no case shall the disclosed by such examination be made in any form to any competi to.r y •rhether on the Code Authority Board or otherwise, or be given any publication except so much thereof as may be required for the administration or enforcement of all the pro-'. visions of this Code." Add a ne\"' s ection to Article:vr to be knoi)ITn as Section 9, reading as follows: "The Labor appointed by the National Industrial Recovery Board, and nominated by the NRA t e .bor Advisory :Board, ha:ve the right to vote on all questions affecting compliance and enforcement, but shall not have the right to vote on trade practice provisions or on the employ!11ent or discharge of any officer, d.irector, attorney, o r othe r agency of the Code Authority." Article VIIi, Section 11 s hall be amepded to read as folloVI"s: " N o member of the industry sball g r ant cash discounts in excess of 3/10 E.O.M . on goods sold. up.)to and including $27.00 a gross, no member of the s:'lall grant cash 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 and/ or volume d i'scotint15 of any nature. 11 _ Add ne'IV Section to Article VIII to be known as se-ction 16, reading as follows: "FREE DEALS--CO!viB DEALS-N o member of the Indus try shall directl; or indirectly give \'!hat a:-e k novrn as I free dea!l;S.' _ or 1 f _ ree merchandise 1 or 1 combination deals: whereby a joint total -price is chc=l.rged for handbag along 'i'1'i th other merchandise. All bills and in h andbags are on. e of the i terns. sha1.1 set forth separately and definitely the charge of the handbag alone." 9811
PAGE 595
-564RECOVERY .AIJi 1Il.JI Registry No • . 236/l/01. , 5399-A Approved Code No. 332. Notice of Opportunity to File Objections Ao.: lini s t rP..t i ve Orcl.er 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 c Lu.stry has made appli .. c ntion to the for approva l of its Itel:ized Bud get and Equi t eble .Basis of Co11tri J1.J.ti on for the expense of c::.dnin i stering the Code for the fisce . l 26, 193lt. to f1arch 26, 1935 The Itemized :;Ju0.c;et 2.,nd Equitable Basis of Co;,1tribution was approv .. ed by Administrative OrC.er Eo. 332-S 0 f Niay 28, The Order of approva l read in pGrt follows: "This become effective fot1.rteen (1 4 ) days after the date hereof unless good cause to the contn1. r y be shown and object-ions filed with me by th2.t tiT.1e o..nCI. further Or ders are issued. thereon by me." The Order of and. the IteJllized Buclcet and Eo,ui table Basis of Contribution are c:. s set forth in Schedule 11A",: her.eto and hereby. made a part hereof • . NOTICE I.. GiiGN that .any objections to said Itemized Budget and Equitable Basis of Co: 1tribution must be filed rri th Deputy Adminis trator Earl Dean Houc:..l' -., Room 4215, Department of ComNerce Building, Washington, D.C., priol' to I;onday, June 11, 1934 • . Any person filing objections rrmst ste .te i1ai'le, the person or group he represents, and the basis of his o"Jjecti This :Zor filing objections is for the purpose of obtai!}o ing in the most eli rect ;_:c:.nner facts useful to tlle Ac1jJini stra t or. .Objec tions filed will be c;iven c.:ue consicieration, c..nC'. the Ach.1inistrator, after consulting with such of l1i s advisors as he 'nay C.eea appropriate, may revise s aid Itemized. Th..lc\.::;et and E quitable Basis of Contribution on the b asis 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 CoO..e Authori t i o s and Tracle and Incbistrinl Associations and 9811 Agencies: The above con tc:..L1 s of possible actioi 1 in uhich your members or other parties to 'You may be You are ureed to exercise every reasonable effort to cause the subject matter to be ccllec. t o their attention.)
PAGE 596
-565-SCHEDULE A o:.:mER No. ) 3 28 O:ii' FAri. COMPE TITIOl7 20P. THE LADIES' Approval of Item ized and Equitable of C o ntribution for Fiscal Year r.iarch 26, 1934 to March 26, 1935. An applicatio n :12.vinc; bee n duly m ade by the CoC:.e A u t hority of the Ladies' Handbag I nc.ustrJ for approva l of its o uclc;e t f o r , and of the basis of contribution b;y-:Jer:bers of the Industry to, e:(_oenses of administering the Code for the fiscal year I.:arch 26, 1934 t o i!2.rch 26, 1935, and. o pportunity to file o bjections being hereby all r.lembers of the Industry, and such "':JD.dget appearing to b e reasonoJ)le and necessary to support the activities of the Coc c e Au.tllori t y , a n d such b asis of contribution to b e e quitab:!..e , N Oll, THEREFORE, ::_Jl,_rsuant to the authority vested. i n ; . 1e, it is hereby orG..ered that, subject to 2..ny pertinent rules a n d regtllations issued by the Administrator, (a) Said budc et, ti1.e original of r r hich, 2..s is on fil e with the Nationa l 3.ecovel' Y Administration, b e , o .nC.. it is her eby approved. (b) The follo':7inG oasis of contribution by ner.1be r s of the Industry, authorize d by .Article V I , S ection 7(f) of such Co(.e o e o n e third (1/3) of one percent ( o f c:ollar s a l e s volume, be, o.nCl. it is hereby approved. This Order b e c or . 1 e effective fourteen ( 1 4 ) after the date h ereof unles s goo0. c 2..use to t h e contra r y is s ho;; n a n C. o bjections filed with rt1e by that tir.1e C'.ncl further orders are issueC:. t L e r eon b y me. HUG !-I S . JOIIlJSON Administrator for I ncJ.ustrial Recovery ( S i rned) :By Sol. A . Rosen b l2..tt Division Ad.r:i n istr ? .tor Recomr.1ended: b y Uillian P . Farnsworth (Signed) Earl Deo n Z o7nrd Deputy :i:").i s c rat or May 28, 1934 . LADIES 1 HANDB A G U DUST:rlY :OASIS OF ASS ESS: :Cl?r ::O R 1'1 SCAL YEAR H A ... Ti.C H 2 6 , 1934 TO 26, 1 935. The :Basis of 2.sse ss: :ent for the authorizer:;. e::;:-_penso s of the Code 9811
PAGE 597
-566-Authority in this shall be one-third (1/3 ) of one (1) per cent of the dollar s ales voh.1::e. The estimated total dollar sales volume in this is $50,000,000.00. Q;.1e-t: 1 i:.:C.. (l/3) of one (1) per cent of this is 0166,666.00. It ' .-:ill be "1ote d that this budg e t calls for 2 . tot;:, l e:::pend..iture of $ 1 40 , 0 CO.OO the first fiscn.l year. At tent ion is ccllet to the fact that the buo.r-;et is estimated on a basis of ninety (SO) cent com pliance, ' . 7heJ.'e2.s t 1 1e C",ssessments nre figured on a basis o f one :mndred ( 100) per cerlt co: further leeuay is left to ::;o.arc . c.::;ainst possible inaccu1c,cic s in the estimated sales volume, etc. s:wl 1.lGthe actual i ncome of t h e Code Autilority on the above b asis Jchc authorized expenc-:..i t1.:_:tes, and all such excess funds 1 .-rill be rel\1.nc 1ed proportionately to the ::-.le ubers of the Industry a t the e n(. o; e2.ch m o nth. 981 1
PAGE 598
CODE AUTHORITY LADI:::;st li..1.liD:DAG H illUSTRY BG:CT ]OR FISCAL YEAR l'.llill.CH 26, TO ::ARCH 26, 1935 GROSS INCO I :IE (ASSJ:;SS::8_T_!: __ l/} TOS:AL SALE S VOLU
PAGE 599
CODE AUTHORITY LADI:CSI :Ll.AlELJA G H EJUSTRY FI SC.AL YEAR i !lL1CH 26 continued B r ought Forw ard TotQ l Gross Income • • . . • Brou ght Forwe. rcl .... T ot['. l C o s t of Le.bel Sales OVLRHEAD • • •••• Ad.rninistrative and Gen e r a l . . . . . . . Executive Secretary and Offi ce •••• 5,000. Bookkee per at $30 . 00 per 11e el: • • • • • • • • l , 560 Stenograph ers l at $25.00 '.1eek, l a t $20 . 00 per ueek •••••• • • 2,340. S witchboard Oper ator and l a t $18 . rope r . -;e el: . • Temporary Clerks 2 for 2 • . • • . • 940 . 350 . R ent, Light and Hea t • ••••••• and Printing •••••• Posta . g e . . . . . . . . . • . . • . A dv ertising . . • . . . • • • • Telep hone and T e l e g raph • • • • • . Auditing . F ees •• : . •••••• Code System Installation • • • Uniform Cost S yste m •• Insurance • • • • • • • • . Sub s c r i ptions • • . . • • • • . • . Conferences • • • • • • • • • . Purchase of Furniture a n d 3,000. • 2,500. . 2,500. • 2,000. .• 1 ,500. 900 . . . l ' ooo. 500. 100 . 50 . . . l' ooo. . . . . . l' 500 . G eneral Expense ••••••••••.•... 2,50C. Contributions to Trade for Code Authority '1."/Qr k • . • • . • • • • • . 15 , 000 . Contingency Fund . . • • • • • • • • . 5 , 000 . TotCll Adrl!inistrc-.tive and G-enero . l Expenses Total Overhea d Expense s • • • • . • • . . Cost cf Labels and Total Overhead Expenses •• Excess of Income over • • • • • • • ' 1 93 4 TO 1iJUlCH 2 6 , 1935 . . . . . . . . . . . . . . . . . . 3 8 ,160. . • 52,78 0 . 4 9 , 240 . . . . . . 102 , 020 . . . . . . . . . . . . . . . . . . . . . . . . . 1 49 , 999. 140 , 1 8 0 . C), 819. [ 01 ')) 00 I
PAGE 600
EAHi n i T 11A11 ... '\LLOCATION OF ::JET' .. DIVIS ION O F PL_\lTIITNG AND PROGRESS JIJ-ill :!)IVI SI011 OF COi IPLIANCE Two Directors O ne Secretary Six Investigator s O ne Supe rvisor O ne Retail Shopper One Clerk -Traveling .Expenses Label .Ltecord Clerk Label Vault Clerk Pacl:ing l erial s *Bookkeepe r Cost of Lc>bels One E=::ecutive Secretary**Eookkeeoer Two One Switchooard Operator Two Tempor2.ry Clerks -Stationery, Printing -Rent, Lights and Heat Postag e -Advertising-Tel ephone and Telegraph Auditing Fees Code s-ystem Installation -Uniform Sost SYsteM ti0!1 -Insurance -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 . 0 0 350. 00 2,500. 00 3 , 000 . 00 2 , 500 . 00 2,000.0 0 1 , 500 . 00 900 . 00 1 ,000.00 500 . 00 100. 00 1)0. 00 $115 ,180. 00 DIVISIOlJ OF P LANNING A1TD PROG:P.ESS 1 0 , 400 .00 7 80 .00 4 ,160.00 3 ,300. 00 2,500. 00 260 . 00 1,040. 00 4'{0 .00 1 75 .00 1 , 500 .00 1 , 500 .00 1 , 250 . 00 2 , 000 . 00 7 50 .00 1,000 . 00 500 . 00 50 . 00 50 .00 6S5 . 00 DIVI S IOH O F 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 , 0 4 0 . 00 } S ,1SO.OO 2,500. 00 260 . 00 1 ,300. 00 470 . 00 1 75 . 00 1 , 00 0 . 00 1 , 500 . 00 1 , 250 . 00 750.00 soo.oo 50 . 00 $94,295. 00 I Ul Q) (.!) I
PAGE 601
....Jnlc=mce Brought :?or"rard Conferences : :tuni ture and J'ixture s Cener a l to Trade for C ode A-;J.t11ori !ork Conting e11cy Fund 115,180.00 1,000. 00 1,500.00 2 , 500 . 00 1 5 , 000 . 00 t),OOO.OO t:l40, 1 c-;o . oo : )II.'I 01' F l OGTISS 685 . bO 1 , 000 . 00 750 . '00 1 ,2)0. 00 7 , 500 . 00 2,500.00 :;;44' 685 . 00 *1\7o-th irds o f oool:lcec oer1 s tiE1e alloc2, .t G d to e:;:;enses of Label Division . **O n l y one-thircl of 0ool::keeper1 s time alloc :'te ci.. to :rorl::: of Plcmning c;nd Progress Di vi siOl1 ;-jll. Co!-1pliance Ji vi sian. 2or1 00 r ....I' ' -J-• 7 50 .{)0 1 , . 250 . 00 7,500. 00 2,"5 00 . 00 •',O .-) LLo r ) 00 ..; _) ' . ,..,. . 1 01 -..J 0 I
PAGE 602
-571ETHI 3 I T 11A11 It is 0.if:ficul t , not to say imposs i oJ.e , to allocate the expenses of Coc'.e f__l t y a s to the manclc.t m .'--r -or o visions of t h e u Cod e . So far a s thnt is concer n e d , all the provisions of the Cod e are mandatory. Pursuc.nt , l1o.:ever, to requests an 2.tte11:9 t ;:rill b e mad e in a genera l man ner to i nC.ic.:-.te the allocation of the o f the admin istration a s to the portions of the Cote . As will be noteCl. I ron Exhibit "A" the e:cJenses alloca t e d to the Compliance Division o.re $95, 459.00. o ; e .... hal f of t his Hill be use d in the enf o:r ce:!e!l t of the l abor provisi o n $ o f tl1e C ode and onehalf in the enforce o f the trade p r8.cti c e si ons. A t t e n t ion i s called to the f e .ct t:1c.t the ex-penses involved i:1 the o,cl.J.inistr:-ttion of Article VI I NRA L2.bels .... a r e charped to Co•:plio . rice Division for t h e . primary function o f the l o.oe l is to a s sist in T h e expenses charged .to the Pl2J.1l1i11s 2.llC1 Prog r ess Division Dill oe allocated to Article VI Admi nistr t ion. 9811
PAGE 603
-572NAI'IOFAL ?.=c;COVEE Y AD ; IF"ISTRATION Registry F o u 236/l/01 Approved Core No. 332. of Opportunity to be Heard Administrotive Order No. 332-12 June 15, 1934 LA.IHE S HANDBAG UJXJS 'r.RY. todification Froposp1 Expense of Code Ac.ministration; Code .Authority Budget and :BR.sis of Contribution; .c.;xception to E xemption CoYltained in A0minis trative Order X-36. The Ladies HancbEl g Industry, throueh the Code Authority, has submitted an Ppplicetion for modification of the Code of Fair i or suc_ h Industry by N1ending such Code PS herein,!'jfter set forth c>nd R s submitted in the anplicetion for .:tocii:!.'icrtion. The Cod e Authority h a s c-l s o :nade ap_91icPtion for tne a-oproval of its :Ju d get .:me B?si s of Contrib'..l.tion by rnembers of the Industry to the expense of acministering the Code for the ner1od from 1934 t o 26, 1935, as to objections receiveci by the .A.c'ministrc.tor. I'he: tote l <-''llount of naid .ttevised Blld.get is ThE: B .!:isis o r Contribution i s of one percent of t h e dollPr s r 1es volume. The Code Authority hes etlso ;ntions vrith res p ect to such exemption es Fi:-..A r eluire or p rescribe . 11 The .. :ooificetion end the F..evised Bud get enci :Sc-sis o:' Contribution are set forth in Schedules 11: \.11 p n d w_,11 vttached hereto and made <" pert hereof. Additionpl cooies o f such and. such F.evised , e t a nc' Rev ised BPsis of ContrLmtion etre P VFJilflule at the office of the l ''a.tionpl F:.ecov ery Ad11inistration, }_oom 4 2 1 3 , Department of C o m.1erce BuildinE:, -e>shington, D . C . N.__J: ICE IS .rn.:E.B:lY G IVEN tha. t any criticisms o.;;_, objections to, or sug.cr,estions c oncerning said ::odiricrtion and/or .Reviser 3udP,et and/or hevised BPsis of Contribution and/or be submitted to Deputy Ad minis tretor Dean C-. C d•;•prds, r .oum Depc:lrt .tent of Commerce .3uilding, \1ash111f.ton, D.C., nrior t o Thurscay, June 28, 1934, etnd thPt Se .i c Mooiiica .tion aY'Id/or hevised Budget n.nd/or r.evised Br-sis of Contri bution and/ or Exce-pt ion mey be FlT.•prove6. in tl e r or1 . 1 nov• subui t ted and/ or 9811
PAGE 604
-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 suggestions sub111ittec , ano sunporting fpct::; received_ , pursuant to this Notice, o r other or consideration uronerly b efore the Ad1linistrptor. ny nerson submitting c:>ny such criticism, objection or suSgestions 'lUSt s .tate his na!3e , the persons or group. s 'rhom he re>;resents, Pnd the .:c:>cts supuorting his criticism, objection or su6g e s t ion. All mptter submitted mill b e given due pnd the mill act only after co!'sul ting 'fli th such of his Bdvisers as he may deem apnronric:>te. Dean G . Icncrds, HUGH _. JOIU\JSON' , A dl1lin i s tretor for Industri? l r.e cover y . (H.B.: To Code A uthorities anc Trece and Industrial Associations anc .Agencies: The above contPins no tice of p ossibl e ::-ction in yrhich your me>1bers or other pc?rtie s to y ou. :ney be vi tC'llv interested.. You c>re urged to eAercis e e•i ry reA son.sble efrort to cause the subject metter t o oe crlled to t neir rttention, ) Fr.O?OSED A.iiL8PD liEfT TO THE CODE OF FAir. CO[v;?ETITIOJ'T G IFI:USTJ.Y The Code of iPir Comuetition for the Ladies' Pendbag Industry is hereby C'l '1ended by striKing out Section 6 c:>nd 5 (f) of Arti 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 the for SectiDn 8 (): (f) 1. It founc n ecesspry in orcier to supp o r t the Administretion of th1s Code and to m..-intc-in the stanC.erds of fpir esta_olishe0 hereunder pnd to effectuate the policy 01 the Act, the Code Au.thority i s authorized; 95 11 (a) To incur such r easoneble are necesspry and p roper for the fore.;;oing and to such ol,li g c>tion s aut of funds orhicn IDElY be rc: i s e d s here ine1fter p rovided c>nd nhich sh?ll be helc in trust for the purposes of Code ; (b) To sub:ni t . to the .rr ... 1ini s tra tor i. or his ap r ovpl, subject to such notice . "'nc opDortunity to be as h may cleem necess.sr y ( 1 ) an itemizG d budget of its e ti1uete6 e>..uens s
PAGE 605
-574-for the foregoing Durposes, anci (2) Pn el-.li table bPsis upon which 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 o f 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 institute legal proceedings therefor in its o,"'n n?me. 2. E?ch member of the industry shall pay his or its e ' ui tPble contrib'c1tion to the expenses of the mFtintenance of the Code Authority, as-hereinabove provided, and subject and regulations pertaining thereto issued by the Only members of the industry C01oplying with the code a . no contributing to the expenses of its administration as hereinabove provided, shall be entitled to DPrticip?te in the selection of mei.Ibers of the Code Aut1'1ori ty or to receive the beni fits of any of its voluntary activities or to make use of pny emblem or insignir of the .FationC11 Itecovery Ao 1inistra.tion. 3. The Code Authority shalJ nP.i ther incur nor pay Pny oblig? tion in excess of the amount thereo f as C;Stimated in its Pp-proved budget, except upon approvpl of the Aoministrc1.tor; F n d n o subse<. l yearly d .ollpr sales volume in this Industry is $50,000,0JO.O O . One-third (1/3) of one (1) percent of this pmount i s It vdll be noted that this budget c alls for a total e?'--penditure of $133,540.00 for the first fiscal year. Attention is called to the fact that the budget 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 exceed t h e authorized eJ..penditures, pnd al1 such eJ..cess funds will be refunded pronortionat e l y to the members df the Industrv at the end of each month. 9811
PAGE 606
575 -Eeceints: Actual .neceiuts for elapsed portion of burgetary perioc frofl1 l'iarch 26, 1 934 to June 1 , 1934 • ........... ......•.....•.... . . ....... . . ... $ NO!T1. Estime'lted rE:mP.inde r of buciget8 r y perioC: encing March 26, 1935 ............... . ..................... . .......... $ 149,..999 . 0.) Total for Entire Bucigete'lry Period .Actua l Expenciitures Expe nditures .rumber for .t:lapsed P eriod .A Salaries Chief Executive Officer 1 $ 600 . 00 Othe r :::xecu t i ves 2 1 ,000 . 00 Code A-__thority ... -------Legal Counsel -------Clerice'l l Employees ,... 1 44 .00 ,.-Othe r Employees 7 --------Tot 8 . 1 SElle'lries $1,744 .00 B . Oific e Expense Rent Hater & Light Telephone &: Telegraph Office Stationery anu Supp lies PG>ta. ge ?r 1nting and 1 timeographing tHscellP neou s expense-Office Packing Material s $ 130.00 50 .00 500 . 00 250 .00 250 .00 250 . 0 0 1 50 .00 Total Office Expense $ 1 , 58 0 .00 9 8 11 Herein Covered Estime'lted Expenciitures for :ternainde r of Pe riod $ 9 ,bOO.OO 1 4 , 40=. 0 0 ----------------9 , 796 ,00 1 4 , 30 : .oo $43 , 29ti .OO $ 2 , 5 7 0 . 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 , 4 20 . 00 $149 , 999 .00 TOT.AL $ 1 0 , 400 . 00 1 5 , 400 .00 ---------------9 ,940 .-JO 1 4 , 300 .00 $50 , 040 . 0 ) $ 2 , 700 .00 1,500 .00 2 , 000 .00 1 , 500. 00 2 , 5 00 .00 3 , 500 .00 1,500 . 00 500 .00 $16 , 000 .00
PAGE 607
c. Gener81 Expense TrAveling r1embers of Code Authority Employees Accountents1 ::?ees Insurcnce Oth e r Expenses Meeting Expenses Contingencies TrPde Development Pnd Research : La1\3ls Advert__ sing Tot P l Gene r e l Expense Tote. l of all ExpencU tures .runctionc;l Itec ppi :b'oregoing Expend.itures GenerF>l .r.-unctions StPtisticP l }tinctions (collection of stptistics, reports, etc. ) Other .bunctions LPbel Distribution Trp de D evelonment hese:::rch Contingencies -576$ 250 ... CG 500 ! .,00 1,000.00 -----250 . 00 -----------------300 .00 $2 ,300.0 0 $ 5 ,624.00 $2,600.00 574.00 2,450. 00 rot,)l Expenditures by ss essed Number of in Industry Annur l net s Ales for 1933 Numbe r of employees p s of J:lecember 1, $ 2,250. 00 9 ' , 500.00 4,000.00 50 0 . 00 2,250.00 5,000. 00 15,000 . 00 Z5, 0 0 0 .00 1,700.00 $65 , 20 J .OO 9 lc3. 00 $2@,200.00 1'7, 386.00 37,330. 0 0 25 , 0 8 0 .00 15, O J O . Y' 5 , 000 .00 $ 2,500. 00 10,000.0 0 5 ,JO'J.OO 500.0 0 2,500. 00 5,0-:.'0.00 15,000.00 25 , 000 . 00 2,000 . 00 $ 67 , 5 0 0 . 0 0 $133,540 .00 $30,800 .00 17,960.00 39 , 750 .00 25 , 0 0 0 . 0 0 15, OJO. 00 5, 000 . O J $127,916 . 00 tl33,540.00 rpproxi:nc?tely 500 FpproAimr1ely 500 II 000, 000 . CD I' 15,000 I, ;.'fpurice S. Executive Secret:rv of the LPd i es 1 !-iand Code Authority, h ereby soler .mly oeclPre thP t the i terns con teined in 1he foregoing bud get ere proper nd correct, c?nc ' t n? l the nroposed expendi t1:res \ 9 811
PAGE 608
-577r nd Pssessrr..:mts nere duly Ppproveo by the Code A u t nori ty P t its session held iY' York, IJ. Y., on A-oril 26 , 1934, P S certified cony of 1ainutes c>tt ?ched to o r i ginPl b u c1get end. herein revise d to conform with requirements o f the f ;c? tionc?l Recovery st rc?t ion. Maurlce S. Mosesson June 9, 1934 E X H I B I T A. The r e are no pc>rt time emp loyees. E X H I B I T B Temporary Office Room 1 605 303 ii'ifth Avenue r e v• York , N . Y. Permanent O ffice 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 rector 4 InvestLe:at ors l Shopper l Stenographer l Clerk B. Office Expenses to comp l ic:mce U. General Expenses 9811 Traveling Expense Accounte?nts' Advertisinf Total $ 7 , 50 0 . 0 0 $1,500 . 00 $10 , 400 . 00 7,840.00 1,300 . 0 0 1,300.00 940.00 . 8 , 000. 00 $ 9 , 0 00 . 0 0 1,00 0 . 00 $ 39,780 . 00
PAGE 609
-5?8-E X H I I T D Administrative Function A . S P leries Chief Executive Officer Other Executives 1 l Bookkeep e r 1 S witoL.t Board Opere'ltof 1 J . Office Expenses 50 % 6hrrged 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 1 Stenogre.pher 1 C1erk EXHllliT E StetisticRl 2500 . 00 1000.00 $,:;, 200 . 00 5,1b0 . 00 1 , 300 .00 1 , 3 00 . 00 $ 1 5 ,300. 00 8 , 000 . 00 7,500 . 00 $30 , 800 . 00 $12,960.00 B . Expenses 9811 TravELing Acco ntents' rees $2 , 000 . 00 3 , 000,.00 5,000. 00
PAGE 610
-577Fnd Pssessments ''rere duly Fpproveo by the Code Autnori ty P t its session held ir> _'eV" 4ork, !J, Y., on Auril 26 , 1 934 , ::-s er certified co"Dy of 1ainutes c>tt.c>ched to originc>l bu0get 2nre 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 Investi.e;2tors 1 Shopper 1 Stenographer 1 Clerk B. Office Expenses 50% to compliance B. General Expenses 9811 Traveling Expense Account?nts1 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 1,00 0 . 00 $39,780.00
PAGE 611
-578D Adrninistrative Function A. S P 1eries Chi e f Executive Officer 0ther Exe cutives 1 Cler k 1 :Bookkeeper 1 Switoia Board Opere'ltof 1 StenogrElpher J . Office Expenses cherged to R6ministration C. Gene ral Expenses $ 5 , 200 . 00 5 , 000 . 00 1,3 ] 0 . 00 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 . SEll eries Chief E:xecuti ve 2 I nvestig8tor 1 Stenographer 1 C1er k E X H I ll I T E 2500 . 00 1000.00 $5 , 200 . 0 0 5,lb0 . 00 1,300 . 00 1,300. 00 $ 1 5,300 . 00 8 , 000 . 00 7,500 . 00 $30,800 . 00 $ 1 2 , 960 . 00 B . Gene r r l E:xpense s 981 1 Tr8veling Expense Accountents' I"ee s $2 , 000 . 00 3 ' 00 0,, 00 5,000.00 $17,960 . 00
PAGE 612
ReGistr-y236/l/01 Ap.:;roved Co(e Eo . 332 -579RECOVEi:tY AD1"Il1ISTRATI01T Larch 16, 1935. Hotice o-f Opportunity to be Heard Adninistrative Order Ho. 332-22 LADIES I P ... .AJiDJ:,AG IliDUSTRY (Co
PAGE 613
-580(N.E.: To Code Authorities and Trade and Industrial Associations and. Ac;encies: 11he above contains notice of possible action in uhich your bers or other parties JrJlown to you maJr be vi tally interested. You are urged to exercise ever y reasonable effort to cause the subject matter to be called to their attention. ) ESTII .IATED EXPENDITURES: t . Salaries (See Exb .A) No. of Empl oy ees Executive Salaries 3 C lerical Employees 1 1 6 Tota l Se.laries . . Office E x l')ense Rent Light Tel ephone t . TeleG raph Office Equip n ent Stationery 8: Su l llJlies Postage Printing t.:. Mil eographing Subscriptions Handba g s Purchased Regional Of fice Expense (See E x b .:B) l.iiscellaneous E:::pense Total Office LJxpense • General Ex pense Traveling (See E::-;:b. D) i.1embers of Cocle Authority Employees Accom1tants1 Fees Insurance Advertising l.ieeting E.::-::p e:1se Cost of L abel Sales Design R e gistration :Bureau Statist ico.l Horl;: Trade Developoent & Research for Contingencies Total C--eneral 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, 1 935 t o June 16 , 1 935 $ $ $ 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 1 50 . 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 ,101. 00 Total r .iarch 26' 192 to r .:arch 25, 192 $ 26 , 000 . 00 9,852. 00 1 0 ,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 $ 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
PAGE 614
581CEDULE 11 A'' con t 1 d . • FUUCTIO::.-AL ?.ECAPITULA TIOU OF EXPLliDITl.hlES: General d:-. 1 Functions Statistical FuLnctions Functions (See Label Fu.nct ions $ 1 4,341.00 2 , 200 .00 Exb .E)9,0 1 3 . 00 Design Burea u r rade Developnen t & Research .3. 236 . 00 750.00 2 , 000 . 00 Total en di t.ure s by Functions 98 11 $31 , 540. 00 $33,986. 00 3 , 691.00 25,612.00 12,812. 00 3,000. 00 $79 ' 1 01. 0 0 $48 , 3 2 7 . 00 5, 891.00 34,625. 00 16,048 . 00 7 5 0 . 00 5 , 000 . 00 $110 , 641 . 00
PAGE 615
-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 : N o . 332-26 LADIES 1 HANDBAG INDUSTRY (Cod e Authority Budget and Bt.si s of Contribution) WHEREAS, the Code Authority for the L adies' Hqndb a g Industry has nnde ap )lication for of its 3 udget nnd ] asis of Contribution for the period from l .:arch 26, 193 5 to Farch 25, 1936, and lfHERE.AS, t h e H ational Inclustrial Recovery :Soard, on I h.y 2 • , 1935, Order 332-25, roving B udget and Bctsi s of C ontribution for the Ladies 1 Handbag InG..ustr:r a:!.1d , WJ:IEREAS, Grder No. 332-25, co:0ies of nhich G .re available u:9on request at the office of the N ationa l Recovery Adninistrati0 n , Room 3071, Department o f Cor.rr. :erce :Building , Washington, D. C., states in :p:trt that "(c) Th b follov7.i.ng basis of contribution by members of the Industry, authorized by Article VI, S ect i o n 8 (f) , of s . : 1.id Cocle, c>. s amended, for the period from H arch 26, 1 935 to J1me 16, 1935; i of of the gross s ales of e 0 .ch r .1ember of the Industry, :payable monthly, based on his Cl:Lrrent monthly s ales e .urlng the budgetary period, be and it is hereby 9811 PROVIDED, HG".7.VER, that r:1embers 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 M arch 26 , 1935 to June 16, 1935, and that the charges paid shall be considered as a deposit b y members of the Industry to be credite d 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 aragrap h (c) hereof; 11(d) The following basis of contribution by members of the Industry, authorized by Article VI , Section 8 (f), of s aicl_ ('ode, as amended, for the from Jurl e . 1?, 1 935 to r :arch 2 5 , 1936; t of of the gross sales of each member of the Industry, payable monthly, b ased 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 u pon the further condition t h e . t the Code .Authcri ty shall levy no r1.ssess;:1ents for the period. after June 16, 1935, until the National Industrial Recovery Bo.:trd, by its further order, shall rer: 1ove this f urther condition of of s aid b'l.sis of contribution; P ROVIDED, !10ITEVER, tha t members of t h e Industry s hall purchase labels to be use d on articles m amxfc.ctured and/ or sold at rate of h 7 o o .0llars and a h alf ( $2. 50) 1.JG r thousand for the period from J1.me 17, 1935 to L :arch 25, 1936, ;':nd. the.. t the che r ges yaid shall be considere d as a deposit by members of the Industry to l)e credited at the end of each month during the budgetary against contributions due from said members of the Industry for said budc;etary period, calculated on the basis of contribution set forth approved in paragraph (c) hereof;
PAGE 616
-583N GTICE :!:S HERE3Y GIVEN that any cri t i c i s n of, o bjections to or sug';estions said vrder 3 0 2 2 5 , must be s ubmitted to wu ty Ac}Jninistra tor .:!Jl t e r ! angun, ?.o o m 3071, o f Co:n'";erce ]ui ld'ing , W ashing t on, :J. C., prior to : . . onda y , June 10, 1935, and that s ....... id l abel cha rges nay oeco!Tle eff ectiv e in their for"Tl, substance, ":'Ording 8-nd/or scop e a s :-.a : be revise d o n the basis o f criticisms , objections or sug :; estions s ubmitte d 1 .nd s u.ppcrtin g f.q c t s r eceive d ) Ul'SDan t to t h i s notice, o r p ro:!_')erly before the 1: ntion a l Industria l R ecovery Boc:.rd. Any person s u b mitting any criticism, objectio n or I:'lust state his ncuJ e , the '?ersons or gro"LT0 S wl1om he re:9resents , t h e sup 9orting his o bjection, criticism, or All natter sub mitte d wi l l b e given d u e cons i deratio n and the N atio n a l Industrial Re covery Boa:..,d. uill act after c onsulting ,-it h suc h of its advisers a s i t may deem appr op riate. Nationa l R ecovery Board, \7 alter Ifian t;um, B y : .1. A . Harriman , Adminis t r ative Of ficer. Deputy Administrator. (N. B . : To Coo e Au t hori tie s I u l.us tria l r-m d Associa t i nns and .Agencies: Tne c 0nt2.ins n otic e o f -_Jossi ble a c t i n n i . n '7hich or parties knou n to you m a y p e vita l l y intP rested.. You a r e u r g e d to e xercis e every reasonabl e effort t o caus e the subj ect r.1 a t ter to be c alled t o tneir atten t i o n . )
PAGE 617
-584NATIONAL RECOVERY ADMINISTRATION Reeistry No, 236/1/ 0 1 A9proved Cod e No. 332 6123-A Su:p:plement9-ry Notice of Hearing: No. 367-D. June 28 , 1934. LADIES H.A.lJ"'D:BAG INDUSTRY VfHEREAS, Section 1 0 of Article 5 of the Code of F air Com:petitio n for the Ladies Hanc1bag Industry provides in p'l.r t that the Code Authority shall 11stud y and investigate the problem of l1omewcrk in this L1dustry, and shall mad e to the recom mend ations for the effective and control of such homework a s is herein :yerm i t ted 11; a.n. d WHEREAS, the Code A u thority has to the Administrator certain recommendations for the effective a..11d ap1 1ropri ate control of such home work as is permit ted by t h e Code, such recom:-nendat ions are incorporate d in Schedule "A", as attached,' and he ire by m ade a part ::O.ereof, and ' the Administrator deems a Hearing necessary and proper to determine the matters hereinabove rP-ferred to and to make modifications, amendments , or additions necessn.ry in accordm1ce :"Tit h the l )rovisions hereinabove set forth. N OTICE IS HEREBY GIVEN that a Public Hearing ' Hill be coi:.cluctecL by the Administrator, beginning a t 1 0 : 00 A. r:1. , 1.1onday , July 9 , 1934 , in t h e Rose Roo m , ;vashington Hotel, Washington, D. C., and continuing until CO::I:t;)leted . An opportunity to be heard (either in :9e rson or by dul_ y a:ppointed representative either b y appearance or b;r sending a f!ri tten or telegraphic statement) will be given to ::;>ersons or grou:9s who can show a substantial interest as workers, employers, consUP.Jers, o r otherwise, in the effect of this question, Tho s e wishing to be heard nmst com:pl y with t h e following simple requirements: (l) A '.-.rritten or t eleg raphic request for an op2_)ortunity to be heard mus t b e filed before> noon on J uly 7, 1934, r.ri th the Ad.mini strator, Room 4215, Department o f Commerce :Builo.ing, "Jash ington, D. c. ( 2 ) Such request shal l state t name of (a) any seeking to testify in t1 3 Hearing , and (b) the persons or grou :os whom l1e represents. ( 3 ) At the Public Hearing s , a l l uersons are reg a rded as witnesses, and shall p resent orally facts only and not arewn8nt. Written briefs or a r gwnents may be filed, but ora l p resentations will b e confine d to factual statements only. ( 4 ) I n the discretion of the Deputy Administrator in charge of the Hearing, persons who have no t complie d rrith t!le requirer1ents of paragraph (1), above, J'lay be :permitted a t any time prior to tne close of the Hearing to file written statements conta ining :9roposals relative to the matters heard therein sup2_)orted b y information or argument. Such written statements rmst be condensed a s !nuch as possi.ble, 9811
PAGE 618
-585-Public He::>.rings a .re solely for the of obtaining in the most direct the f acts usef cl to the Adnini s tra t or, and. no .:trgu;--Jent s will heard or considered a t time. Re0resent atio n of interest e d parties by attorneys or speciali::>ts is )err!issi ble, but i t is not to be regFl. rded e . s nec ess"'. r y . Industry , workers, and the consuming public '.7ill be rqpresent e d by syecial advisers by the Government. Dean Q.. Ecivvards, Administrator. HUGH S. JCHlJSON, Administrator. • .B.: To Code A uthorities and Trad.e 9-J."ld Industrir t l Associations and .Agencies; T h e c ontu .L1s notice of possible nctio n in uhich your members or other pQrties knonn to you Je vitally i nterested. You are urged to exercise every reasonable effort to c a 1.se the subject rrhtter to be to their attention.) Schedule 11A11 PRGPOSED AI iE!IDLErTTS TO CODE GF FAIR Cul\IPETI TIG N LADIES HA1JTIBAG LJDUSTRY .TJ 1 e Code of F o.i r C oi!lpeti tio n for the LD.dies' Hand.b a g Industry is here by anend.ed b y addine; the following as a nerr Article IV, Section 8 of s aid Code: 9811 11::Li1e Co0.e Authority shall a F.ome':"lork Commission snall e s t a blish rates for hr nd bea.ding , hand Cl'OchetL1g, hand e mbroidery, n.nd no n e;Jber of the shall compens:tt.e ho;-ne at les s t ho.n t.Lle )ieee n ork r •. tes established s . ..,,id Corr1 i ssion. S aid Co:1o;i ssion shall e s t :"lbli sh oiece r ates 1:;hich shall be P qui valent to a mini :.mm hourl :r r ate of t-.;-1enty-five cents ( 25) for '.w rkers continuously engagPd. S"'.id C c iT1i ssion shall be supported by ,embers of the Industry ngnged L1 t h e manufacture of hand.bas s b7 means of h...,_nd b e a ding , he_j_1d crochetL.1g, 0 .nd nand embroidery, and s.1ch nembers of the Industry shall to the supyort of said by a :t1ethod of assess:r'lent to be ar,rorove d bJr the Administrator 11•
PAGE 619
-586N A I I OlJAL H E CO VER Y A D I ; nnsTRA.TIO H 1 998-.A Eo. 236/1/0 1 Uoti c e of Hearing : No.367. iovemb e r 2 8 , 1933. TH:::G L A DI:SS EAl::Oi3AG ETJJUSTB.Y The abov e industry a s represented by the As sociated Handbag Ino_ustries o f Auerica, Inc., I.Iidrrest Han d bag and_ Small Leather 1Jares Associ2.tion, I::1c. , an G. the In
PAGE 620
-58?' (5) In t h e discretio n of the Adninistrator i n c h arge o f the persons Tiho h a Y e not complied ':•.L th the requirements of po. r a gra:ph ( l ) , abov e , ::11ay be t tod <..t any t i r:e prior to the close of the Heari n0 to file Hritten s t a tccents containi nc; p:co-:_:;osals :fo r elini n8 .tions froJJ, hl.oC:lficp,t ior_s of, o r adcl.i t i oas to the Code suppo r ted b y per t in e n t infoluati or: o:. Such uritte. 1 stat eMen t s m u s t be co nclcnseC: as much as uossibl e . Pub lic a r e s o l e l y the 2Jurnos e of obtaining in t h e most direct nanne:r the f acts useful to the ]._ d2ini s t:rator, and n o a r guments will b e hea:cd or considered a t t h i s tine . Re_1l'escntation of interested parties by attorney s o:r is but it is n o t t o b e regarded as n ecessary. C;.l.:.1d the consu..rnin['; p u blic Tiill b e repr e sente d b y special a dvisors er>1ployed b y the Governmcn t . A. D . Uhi tesic:e, Division 9811 HUG!i S. Joti'_.JSON , Acbinis
PAGE 621
NATIOHAL .ADiHl\TI STRATI ON Registry N o . 236/ l / 01. Cod.e 3:52 4487-A Notice of Hea ring: 067-A April 1 8 , 1934. LADIES H.AN.JBAG IPDUSTR'i for Bxce;tion ) A. l1u6.son Leather Good s , I nc., 8.') S o . = 3roc . orray , N e " York . B . Strand. Leather Goods C o., Inc., est 32no . Street, ... Jen York, rJ. Y. C. ?e t I nc. , 3 1 0 S o . l l e e c1. orr Street, :g,i chmon o .,-Va . D. P._.ra.:;;on 3ag Co., Inc.; UneedEt Belt Co., Inc.; Ha ndBa{;C o., Inc.; Inc. All ofNevrburgh, lLY. E . G. Goc.f:re y Gc:u.'c1ner, The above C O ' 'rp, n ies, no'7 opero . t i nt; 1E1der Code o.f Fair Comoeti tion f o r the Ladies Hend.bG.;:-i1c:>ve submitted an a:pylication for exem 9tion (A) Articl e III--.ho ,UE'--S ectior..s 1 and. 2 : (B) to em learners to Arti .::;le rv-. :c.,:e Q--Section 3 : (C) modification of Article IV---:. ai::'e s--Secti on s l, 2 , 3 , c.11c, 4 , (D) Articl e IV--Sect ion 1 and 3 , ( E ) Article III--Hours--Section 1, Article IV--1:iages--Sections 1 and 6 of s a i d Coce, Th e herein a.'o ov e 1entionec. Articles of the Code of Fo ,ir Co!:!pet i tion for the LaCi.i e s H o l'}cl.br, z Incl:t::..st;:y p r e as set forth in Schedule 11A11 attached hereto n.nd. hereby maC..e a !?art hereo f . N OTIC:S HSRLT3Y that a Public H earing on these exemptions will be cond .ucted . b3r t:1e A
PAGE 622
-589statements mu. t be conrenr:.ed as mucl1 n s ;op' i b l e . ?u.blic '!eeTin-;r F t-' e !SOL :;1 r f o:.. tl1e mT'_Jose o : obt::i ning in the most c .irect m a n :.e; t'1 e f'acts '.sefu] to cJ.e .ACJJlinistn:o.tor, r-nd. no Lr,-::mnents :il ,_ b o h'JaL".. o:C ' JnslC:.erec. :. t t hi..s bre. oL' i}!te:restecl -_.Jarties att.o:tne:rs or ..... i P J e::.mi.ss i"ole, out it is Eot to be regardeo. ar Inciustrr, mc =r.: s , anc t ,e consu'71in..r; public nill be r-.Jre sen tee. SLlecie . l a 0vi s o r s e:nlo-red the Government. S o l A. Division Acministrator. 4487-B 4'J0l HUC-H _... JOnNSON, A:.mi i.1 i s t rat or. Code of 7air Comu eti tion for t:1 e Lrdies 1-ionc'bH. I nc1ust ry A. Article III -Hou r s S ection 1. Except a . s hereil1n.fter • iceCl., no em:c'lo;r e e be p errn i tted to \70rk i n excess o f fortv (40) hours in F.n-r one Feek: , mr i:1 of eight ( 8) hours in C'. n -; t r ren t y -four ( 24) hour peri oC. . • Sectio n ;-'. 1 0 per son emJlo;ecl i n ship!Jing, clericc>l, or office uork, unless he is emplo-re d ii. 1 a ma. n cgeric:J.l o r executive c,-p acity a n d . earns not less than COll
PAGE 623
-590Section 4 . This Lrticl c ec:t;;;-.l iGllss c-mi-:1im11IT1 of i1ich sh;_ll irresoecti ve of '7hethor ';i1 i co-:T?ensatec. Qj1 a. uiece :::C).te, time r a t e or o tb.eJ. bc.si s . D. A r ticle IV Seccio11 1. Exce•Jt as hereinafte r urovi0.e:3., n o shal l be •Jaio. a t less than tl1e of t:1irty-:'ive (35d) '9er S ection 3 . The Ao.minj s t:-a.tor may , i •mal ci rc1::.ms ano U!JOn such <-' l:e ma:.r p rcsc : J.'ib e , -,JeT;,i t r 1ember o f the to le.:•u1crs e.c rates belo1 .-; the minirrJ.l.m .-Dr;e h erein estD.-blis!.1ef. . E. Artic l e I I I Section 1 E:{ceut as jJrovicteo , no e:n::.")lovee shall be perrni tted to 1 , -rork in excess o f :Carty ( 4-0) hours i n C'-J.'lY one n o in excess of eight (S} hours in any t-nenty-four ( 24 ) ho1n Article IV .!ar;es Section l. E xce1")t as urovic3.ed, no em-ol o-.ree shnl l b e pa.id at less tha n the r a t e o f t h irtyf ive ( Section 6 . Th e AG.mi ni s t r e.t o:c r o comnenda t i o:.1 bu tl1e Cocl.e .Authority and after f ull s tucJ.;;r and investi go.ti on the Code .Aut:10ri and after such notice anc3. l.1ec...ring as he shall esta:blish, as a •Jcl..rt of this Cod e , basic ro..t 0 s for the skil} .ec3. classes of employee s as ma y be necessar:u to Jurthe:::-tl1.e )Ur)ose s o f the Act. 9811
PAGE 624
-59(!_-Reg i 1JO. 235 /l/01. 5113A Cod e No. 322. Notice o f Heari n0 : No. 367 B LADIE S HA:m J A G IF:)USTH.Y Section l of the Ord .er of Harch l 4 , 1934, the Cod_ e of Copetitio n f o r t h e Ladies Hand .3a g In0 .ustr' , -orovic!..es that Section 2 of Article I V of the Code bo stayed 11nr.til the Code A uthority shall to t . ' .1e AGJT1ii.1istr01. tor e , 'iefini of tl1e term 1 s emi4skilleC. em ployee', as u sed in s aic. Article anc. Section of the Coo .e .11; anr . 1i7HE3EAS, Section
PAGE 625
be hear d or considered a t .this time . of interested .. "Jar ties by attorne7s or specialists is Jut it is not to be re gar d e d as uorker s , 2nd t l 1 e Jub J.ic nill be renresentc d b y specia1 . advisor s by the Government. l 1r l Dean --HUGH .. JOHN'SOF, A&ni n i strator. Deputy A d mini s t r a .tor. (N.B.: To Code Authorities and Trade a nl' _ I nC.ustrir recS.sonabl e e.r-:fort to cause the subject matter to be c a lled to
PAGE 626
6014-A NATIONAL RECOVERY Notice of Searing : Jo. 367-C Registry No. 236/1/01 Approved Code No. 332. June 23, 1934. LADIES HAND BJi.G T iDUS'l::qY. WHEF.EAS, S ection 1 of t!e Or d e r o f rla rch 14, 1 934, approving the Code of Fair Co..-,petit.ion for the Ladies iin or by duly appointed rar.rese!1tat i ve ei a n ear3.nr.e o r hJr sending a written or telegraphic statement) will be given to persons or groups who c a n show a substantial interest workers, employers, consumers, or otherwise, in the effect of this question. 9811
PAGE 627
-594Those wishing to be heard must com ply with the following simple requirements: (1) A written or telegraphic request for an opportunity to be heard must. be fil::-d b e fore I:O ( )il o n Jul:v 7' 1934, with the Roo m 4 215, Depart m cr..t o f Commerce Buildi11g, W ashington,D.C. (2) Such request shall state t ile n 0me of (a) any person seeking to testify in the Hearing, and (b) the persons or groups whom he represents. (3) At the Public Hearings, p ersons are a s witnesses, and s hall p resent o r ally facts onl? an.d not argu111ent. Written briefs or arguments m 'l y be filed, but oral presentations will be confined to factual statement s only . (4) In the discretion of the Depu t y Administrator in charge of the HeRring, persons who have not cOmj-; l i c d _ -,..;.:.th requirements of paragraph ( 1) , above , may b e pen n i t; ted at a n ; T c1:ne p-c ic'r to the close of the Hear ingto file statements r e l ative to the matters heard. eC.. by pe:c i .. t j n fo:i :ma t ion or argument. Such written sta t e ments must be c ondense;'. a s fll U C h as possible. Public He a:ring s a r e solely for the purpose of obtaining in the most direct manne r tl: ... e fact.:; useful to the AdmL;.istrator, and no arguments will b e heard or a t t1me. rtepresentation of interested p artie s attOj,'l1e;r s o: : .. s pe:-m issirle , but it is not to be Tegarded as Ind:.::su7, v o ; :kers. and t h e consuming public will be represente d s p ecia l advisers employed by the Government. Dean G. Deputy .A.dmini st:rator HTJSH S_! J OIDJSON s t;:cator N. ].: To Code Authoritie s a n d Trade anc1 I ndustrial Associations and A-"'enc i The Rbove contains notice o f ossi ' l e action in which your members or other t o you may b e vit< lly interested. You are urged to e xercise reasonable effort to C[!USe the subject matter to be called to their attention.) 9811
PAGE 628
DEFINITION S OF SE!v;I-,,iG L 1=D \ ' G::{K.F3S AGREED UFO_ BY BOTH Il':DUSTRY REFrtESE OF I S SION A.FFOINTE D TO DEF INE SEMI-SK I L LED WORKER *** All operations are to be considered semi-skilled, excepting cutting pnper, r.r:c . ing or r'ubber or 1 i_n]_:lf::' cloth, and excepting h andles, handle linings, pB:ler, puller linings, gus sets a n C sr.:all trimmings that are cut by lickers. *** DEFI TITION OF OFEJATil i G All operating is to be semi-skilled, excepting linings, handles and pullers, s ewing p,r d s ev' inl; on 0: DRl1clle s and pullers, and seling in linings into the begs for purposes . • >!= X All workers e ;: g Pst. .i L !>Dclcettoa}: .1l.::.king by hand, are considered semi-skillod., G".:.::ning L1 "', loops or gussets, or hangL1g on :'lap-;, <1ls v xce .• i ,:;_ng . qble work on linings. : :"'* OF rtD ------All framing s nall be considere d excepting all purses and frame pockets. *** DEFINITIO T ()F Siiv : I-SKILL.C:D I N FA::tiP} All who d o parirlS on parir,;; rr1.qchines who are capable of making the necessal'J' cl:1anges of go:u_ g";, ';:: and en::ery wheel on a paring machine be considered semi-ski e x epting those who pare handles, tucks and The Co1'1'Jrr.ittea agrees that no pe:sun s. all b e considered semi-skilled on an? of the tove or.erations unless he: has bee n emr l o .red on any operation for a period of six s . STATEMENT Oi!' IP .!30R _SEI\
PAGE 629
-596of Cutting All cutting op erations are s kille d semi-skilled o perations. Four outstanding manufacturers of the ind ustr y have agreed in a previous discussion on the venr srune subject t o the following: 11All cutting operations, excepting pape , W:=!dding and ruboe r cloth c uttilg, a r e t o 1';.:; cv:1sidered semi-skilled.11 The following co m':""ittee memb8rs he1•;e signed their names to t his definition: I. Schoenholt.z, C hfls . W olf, S. Maksik and A. Greenbaum. We dispute the e xception s to paper wndding and rubber cloth cutting, and ask t h8 t they be included a s s killed and semi-skilled operations. Definition of All operating on outside work , linings, handles, pullers, etc., mus t be considere d skilled or semi-skilled. operations. The four above mentioned employers hav e gone on record with the Code Authority for the Ladies 1 H n n dbn.g Ind.ustr;r on the question of defining the semi-skilled operAtions in the operating brach of the trade as follows: "All outside opernting shall be considered semi-skilled except han
PAGE 630
5::'7 The above mentioned four have defined semi-skilled operations in the of the trade as follows: 11 All cngf'ge in P'Y c b0o.K are to be considered s en i -cki ll::od , cx-::ep t t1Jr.'1L t in handles, tucks or loops, and all table work on lini;1e:;s.11 We know from our o w n experience, n.nd tLe employers in the City of New Ycrk have c.J.wnys cc7J.ced8rl thai. t ...unj .:lg in h .::mnittee of four employers which cor1s ti tuted. the rra jcri t;r nwn of the employers of the indus try, and we demand th3t be C.onent moQernize d a"ld. ef1'.:..-::1emt methods of production, is entitled t.o be clpssified a t leaJt , s a sr:;mi-skilled worker and justified to the minimLm scale of p e r hour provided for in the Code of Fair Competition for the Ladies Handbag industry. 9811
PAGE 632
NOTICE OF tiEARI : J G 367-D IS OUT OF STOCK
PAGE 633
600 I N D :E X ------9811
PAGE 634
601-I N D E X ---Pages Accounting aJ?.cl.Price Provisions ........ ; ....... .... .-:............. 91 Accounting System . . . . . . . . . . . . . . . ................................ . 91 Administration of Code .......................................... . 67 H embe .r-s............•........ ............ ;......... 52,55-102 Cl1anges 1n • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . • • . . . . • • • 52 Reports ........ .... . ..... . . . ........ -... . ........ . . . . . . . . . . . . . . . Exlli bit N Exllibit U Administrative Code Provision s ................................... 90 Administrative Order X-36 . . • . . .. .. .. .. .. . .. . .. .. .. . . . . . . .. .. . .. . • 65 Terminatiop of. Paragraph 3 • • . • .. . . . . . . . . . . . . . . . . . . . . • . . • . • . . . . 65 Administrative Orders, List of .............................. Exllibit Fl Administrative Orders, 110th$r11 •• ••••• •• •• • • •• • •• ••• •• • • • • • • • • • ••• 65 Effect of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Administrative Price Policy...................................... 91 Administrative Provisions........................................ 90 Ad vi sorJ r Boards • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Personnel . .... ........ . _ ..................... . . . . . . . . . . . . . . . . 101 Agencies of Code .Authority •.................... .. .. . . . . . . . . . . . . . . 58 Aides ........ . . • .. _ . .............................. ... . . -................ 101 Amendments ................................................ ..... Exhibit L A.pprentices and Learne;rs •........ . ........... ..................... 88 Approval of '! . . • . . • • • . .• .• . . . .................................. 80 of Code .... ............................. ..... . -. ... . . . . . : . . . . . 40 of Code Au tho ri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Assessments .......... ............. , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Methods of. •..•.......... , ........ •: ... ; .. ;;;;; .• 64 Proportion Collected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Success or Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Voluntary or M andatory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 9811
PAGE 635
-602Assistant Deputy Administrators • . . . . . . . . . . . . . . • . . . . . . . . . . . • • . . • • . 101 Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . 14 Officers of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 (See also 11S po.nsoring Organization") Budgets As Submit ted and Approved. . . . . . . . . . . . . . . . . . . . . . . . . . . • . • . • • . • • 64 Periods Covere d By ••........... ...•... . • . . . . . . . . . . . . • . • • . . . • 64 Budgets and Bases of Assessment •.................•.. ... 63 , Exhibits F,Y Bulletins Code Authority •...........................•........ Exhibit C By-laws .................................................. 78, Exhibit Dl Approval Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Approval, Step s in Obt aining • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 79 Capital, Aggregat e I nvested • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 7 Child Labor Provision • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Class A Trade Practice s .......................................... 92 Class B Trade Practices 95 Classe s of Industr;y I!Icmb ers ••.............................• 6, Exhibit B Classification of Workers ••......•........................... Exhibit J Classification of Customers . . . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 91 Code Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 of the Cocle •..•................... ..........• 45 .Amend.men t s • . . . • . . . • . . . . . . . . . . . . . . . . . • . . • . . . • . . . . . . • . . . . • • . . . 67 ]ud.gets and :Base s of Assess:nent • . . . . • . . • . . . . . . . . . . . . . . . . . . • • 63 Gen ere..l Discussion • . . . . . . . . . . . . . • . • . . . . . . .. .. . . • 45 Success or Lack of Success.......................... 61 Organization ........................................ :. . . . . . . 51 Code Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Conditions Order of ......•. .•............................ 40 Date of .... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 9811
PAGE 636
Code Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . 54 Age ncies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 8 A s Industr Gove r n i n g Bod y • . . . . . . . . . . . . . . . • . . . • . . . . . • . . . . • . 6 1 Assessment Col lection Nethods . ... ... . . . . . .. . .... .. .. . . . . . . . 6 4 B y-LaTis, o r Ru les and Regul ations.......................... 78 Changes in ....................... . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 8 Date of S e lection, and. H e thocl. • • . . . . . . . • . • . . . . . . . . . . . . . . . . . • 5 2 F ield Orgc=tni z atio n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Financial Operati on s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4 P e rsonnel ........................................... 5 4 , Exhibit T Recogr1i t ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 ' Cod e Committee • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Code F orr:::tul.2..tion • .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Ear l y Confer ences and _.,.e gotiations . . . . . . . . . . . . . . . . . . . . . . . • . 2 1 Hearing s ........................................ . . . 23, EXJ..'libit Gl .rT o n S ponsoring O rgani zations • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 20 Officers , Code Con n i ttees, G roups • . . . . . . . . . . . . . . 20 Cod e , Printed ( A p proved_) •..••............... . ....... :!?r e c eding Exhibits Cod e Provisions Changes Durin g F i n a l D rafting.............................. 39 Ope r a t ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 Undesi rable o r Unenforcea b l e............................... 9 8 (See als o "Op e rati o n of Code P r ovis ions") Cod e Revision ...................................... ' . .. ........ . 39 Codes, Drafts o f ...•...................................... ... Exhibit A Collection of Statistics • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 90 Compliance Definit ions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3 H o u r s ...................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 R ecomTTJ.enCta tions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 6 Trade Pra c tices ••..................... . .......•...•..•....• 92 W a ges • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . • • . • • . . . • • • • • 83 Virginia Art Good s Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exhibit V Haverhil l , Mass., Vlor k ............................ Exhibit X 9811
PAGE 637
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 .•........................................ 101 Differentials . . . 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
PAGE 638
-6C5Exemptions ....................................................... 75 Factory, Wage-Earn ers, Number of.................................. 7 Female Emplo yees • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • • 11 Field. Organization of Code Authority • • . • . . . .. .. . .. . .. . .. . .. .. . .. . 58 Final-Draft Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Financial Operations of Code Au t h o ri t y •.............•.. . . . . . . . • . • 64 First-Draft Code to Pu0J.ic H earin g 21 General Information .............................................. 2 Geogra:9hical Di stri but ion of I:nd.ustry 9 Handicapped Persons .............................................. 87 Hazardous Occup ations • • . . . . . . . . . . . . . . . . . . • . . . . . • . . . . . . . . . . . . . . . . • 87 Hedge Clause .. -.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 History Outlin e by A. i:Iittenthal ••........•..•..............• Ex..'l1.ibit G Home Workers •........ .. : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87, Exhibit 0 Hours Provisions .................................................. 85 Cohlpliance .............................................. Exhibit R Industrial Advisory Board ................ , ' . ................... . 1 0 2 9811
PAGE 639
Industry Compliance ••.••. Definition o f ••. Reaction to Code A P:)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 Investigatio n of Records . . . . . . . . . . . ............................. Labels ...... . ...... . ............................ ... . Labor Advisory B oarcts .. . ............................... . Labor Co11pl airrts Cor';.;ni ttee ..................... ... ...... 77, Exhibit . .. Labor Provisions Miscellaneous Posting ••..... (See also 11Hours11 and 11Viage s ") Learners end Ap:)rentices . . . . . . . . . . . . . . . . . . . . . . . . . . . . Legal Division •...•••... Limitation on Production, I Iachin.ery, Shifts, etc. Liquidate d D amages • • • • • . . . . . . . .. .... ..... . .... ........ ..... Miscellaneous Labor Provisions .................................... 9811 90 66 101 Cl 89 85 88 101 98 90 89
PAGE 640
-607-!Jon s ponsoring Organizations •... . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... . Operation of Code Provisions ••.................................... Accounting and Price •.•...................................... Administrative............. . ............................. . Definitions ................................................. . HoL,_rs •• • .•..•...•••.•..•.•.• ................................ . Labor, other than Hours W ages •...... . Trade Practices ........ . .... . ... ........ . ..... . . . . . . . . 1 ages . . . . . . . ... . . . . .. .. . . . . . . . . , .. . . . . . . . .. . . . . . . . . . , ... ........... . • . • ... . Order of J\ppToval . ....... .. . . . . . . . . . . . . . . . . • . . . ... . . . .. Overlapping Defin-i tions .... .... . . ...... .... . . ... ' ... . . ' ................. . Peak Periods • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0 •••••••••••••••••••••••• Personnel Administration Code Authori . ... .................. . ........................ . . . . . . . . . . . . .............. . .. . . . . . . . . . . . . . . . . . • . ............... . Posting of L Pbor ••............. Pre-He arin g Conferences and r e gotiations ............ Price and Accou ntine Provisions .......... Price Differentials ••••••••••••• ' •• It •• ! Price ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 18 82 9 0 90 82 85 86 92 83 40 82 86 1 0 1 54 25 85 1 4 90 91 9 1 Price Policy, Administrative ...•... Exhibit Z Primar Material Sources .......... .. .................................. 2 Principai Products .. . .. . .. .............................. ...... ...... . . .... 4 Printed Cod_e ....................................... . Preceding Exhibits 9811
PAGE 641
. -608-Proc"':.uction Capac i t y , Aggregat e . . . . . .. .. . . . . .. . . .. . . . . . . . . . . . . . . . .. 6 P rociuction , Limitation O n . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . . . • • 98 Products U nder Other Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . • 4 Proporti or;. of Assessment s C o llected. • . . • . . . . . . . • . . . . . . • . . . . . . . . • . . . 66 Protest s U nder E;:e c utive Orde r 6205B . • . • . . . . . . . . . . . . . . • . . . . . . . . • • 43 Pub-lic nearing .(s) . o n Cod e •••........... . . ...•..••.•........••...•. 23 D a t e & • • • • . • • • • . • • . • • • • • . • • • • • . • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 23 P e r s on n e l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Results . . . . . ................ . . . . . . . . . . . . . ...... . ........ . . t ••••• • • • • • • • • • • • • • • • • • • • 2 4 P ublic Heari:r1gs t o . A :pni'ova l .. , ... . . . . ....... . ....... . . . ...................... . A ctivit::.e s During F inal of _ Qqde •...................• Assent of I nd .ustry t o Coo.e ••............... ." ..•. . . : . ........• Changes. in . Code . provisions. dl;t.:r:\.ng ••.....•..... Post-Hearing C onfer ences •....•...•............•.............• . . . ...... . RecommEmd atio n s C omplia:1 c e •.. . . . . . ..•...... ,r.ri t h Code .... .................................... . Lim i ta. tion o n Proc l uction , Hac h iner y , Shifts , etc. . ..........• Poss-i ble Code CDnsol.ida t imlJ3 ..•.•. . . • ... • .... ......•.............. Und:esira b1e o r U.n c n f . o:rc.eable . P r . o v.i. s .i ons .. • •... , ...............• Re i e r ences . . .......... ............... .... . . . . .... . . ............. ......... . 25 25 43 4 0 2 8 9 6 9 8 98 98 98 2 Re search and Planning -Division .•••... . . ... _... . . . . . . . . . . . . . . . . . . . . . . . . 101 Reports .................................................. Exhibit E Exhi bit P S a les ............................................................. . 7 • • • • • • • f • S a l esme n ............................ . ... .. .................... Ex_hi bit El S emi-Skilled, Rep o r t o n • . • . . . • . . . . . . . . . . . . . . . . . . . . . . • . . . . • . . • Exhibit K . . . . . . .. . . . 981 1
PAGE 642
t-09 Page Skilled Wages .•........................................... 84, Exhibit L Sponsoring Organizations • • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Name, Age ano. Objective .. .. . .. . .. .. . .. .. . .. .. .. . .. . . .. .. . . .. 14 Officers, Code Committees, Interested Groups................ 17 Representativeness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Statistics of Industry ••.................................. 6, Exhibit F Capital, .Aggre Invested • . • . . . . . . . . . . . . . . • . • . . . . . • . . . . . . . 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 3, Ad..Tl'}i n istrative Order JC-36 • • . . . . . . . . . . 65 Terms of Payment ......................................... 64, Exhibit H Tolerances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Trade Associations............................................... 14 Trade Practice Comnlaints Com:r.1ittee 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 Ii nimum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 84 Indus li Compliance • • . . . . . . . . . . . . . . . . . . . . . . . . . . • . . • . . . . . . . . . • 84 with Other Industries • . . . . . . . . . . . . • . . . . . . . . . • . • 84 Skilled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Waiting Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Women :Elnployees • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 11 9811 #
PAGE 644
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 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 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 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.
PAGE 646
-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 Qf Studies in 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 Trans-portation, 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 Industry, Financial and Labor Data on 9768-2
PAGE 648
iii Women's Apparel Industry, Some Aspects of the 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 P robJem and Its Treatment Under NRA Codes Electrical Mfg. Industry: Price Filing Study Fertilizer Industry: Price Filing Study Geographical 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 Prod uction Control in the Ice Industry Production Control, Case Studies in Resale Price Maintenance Legislation in the United States Retail Cutting, Restriction of, with special Emphasis on The Drug Industry. Trade Practice Rules of The Federal Trade Commission (1914-1936); A classification for 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 Employment, Hours, and Wages in 115 Selected Code Industries 1933-35 Fur Manufacturing, Commission Report on Wages and Hours in Hours and Wages in Americ an 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. Section 7(a) of the Recovery Act Materials in the Field of Industrial Relations PRA Census of Employment, June, October, 1933 Puerto Rico Needlework, Homeworkers Survey Administrati?e and Lega l Aspects of Exemptions and Exceptions, Code Amendments, Con-ditional Orders of Approval Administrative Interpretations of NRA Codes Administrative Law and Procedure under the NIRA Agre ements Under Sections 4(a) and 7(b) of the NIRA Appr ove 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. Nature, Composition and Organization of Code Authorities 9768--2.
PAGE 650
-iv Part C. Activities of the Code Authorities Part D. Code Authority Finances Part E. Summary and Evaluation Code Compliance Activities of the NRA Code Making Program of the NRA in the Territories, The Code Provisicns and Related Subjects, Policy Statements Concerni Content of NIRA Administrative Legislqtion Part A. Executive Orders Part B. Labor Provisions in the Codes Part C. Trade Practice Provisions in the Codes Part D. Administrative Provisions in the Codes Part E. Agreements under Sections 4(a) and 7(b) Part F. A Type Case: The Cotton Textile Code Labals Under 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 Prob lems of Administration in the Overlapping of Code Definitions of Industries and Trades, Multiple Code C overage, Classifying Individual Members of Industries and Trades Relationship of NRA to Government Contracts and Contracts Involving the Use of Government Funds Relationship of NRA with States and Municipalities Sheltered Workshops Under NRA Uncodified Industries: A Study of Factors Limiting the Code Making Program Anti-Trust Laws and Unfair Competition Collective Bargaining Agreements , the Right o f Individual Employees t o Enforce Commerce Clause, Federal Regulation of t h e Employer-Employee Relationship Under the Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial Regulatory Legislation Enforcement, Extra-Judicial Methods of Federal Regulation through the Joint Employment of the Power of Taxation and the Spending Power G overnment Contract Provisions as a Means Establishing Proper Economic Standards, Legal Memo randum on Possibility of Industrial Relations in Australia, Regulation of Intrastate Which so Affect Interstate Cgmmerce as to Bring them Under Com mer ce Clause, Cases on Legislative Possibilities of the State Constitutions Pos t Office Post Road Power--Can it be Used as a Means of federal Industrial tion? State Legislation in Aid )f Recove ry Legislation History and Analysi3 Tariff Rates to Secure Proper of and Hours, the Possibility vf in Trad e Practices and the Anti-Trust Laws Treaty Making P ower of the States War Power, Can it be Used as a Means of Federal Regulation of Child Labvr 9768--4.
PAGE 652
v -The Evidence Studies were originally underta ken to gather material for pendin g cases. After the Schechter decision the project w a s continue d i n order to assemble data for use in connection with the studies c f the Division o f Review. The data are particul a rly concerned with the nature, size and operations of the industry; and with the re ation of the industry to interstate commerce . The industries covered by the Evidence Studies account for more than one-ha:f of the total number 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 Chemical Manufacturing Industry Cigar Manufacturing Industry Coat dnd Suit Industry Construction Industry Cotton Garment Industry Dress Manufacturing Industry Electrical Contracting Industry Manufacturing Industry Fabricated Metal Products Mfg. and Metal Finishing and Metal Coating Industry Fishery 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 Leather Industry Lumber and Timber Products Mason Contractors Industry Men's Clothing Industry Motion Picture Industry Motor Vehicle Trade Needlework 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 Indus-try Wool Textile Industry THE STATISTICAL MATERIALS SERIES This series is supplementar y to the Evidence Studies Series. The reports includ e data on establishments, firms, employment , Pa yrolls, wages, hours, production capacities, shipments, sales, consumption, stocks, prices, costs, failures, exports and imports. They also include notes on the principal qualifications that should be observed in using the data, the technical methods employed, an d the applicability of the material to the study of the industries r.oncerned. The following numbers appear in the series: 9768--5.
PAGE 654
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 Products Industry Cotton Textile Industry Electrical Manufacturing Industry vi Fertilizer Indus try Funeral Supply Industry Glass Containe r Industry Ice Manufacturing Industry Knitted Outerwear Indvstry Paint, Varni5h, and L a c q uer, Mfg. Industry Plumbing Fixtures Industry Rayon and Synthetic Yar n Producing Industry Salt Producing Industr y THE COVERAGE original, and approved, plan of the Division of Review contemplated resources sufficient (a) to prepare some 1200 histories of codes and NRA units or a gencies, (b) to conso1 date and index the NRA files containing some 40,000,000 pieces, (c) to engage in extensive field (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 repare a comprehensive report. Beca use 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 report; the dropping of certain studies a nd the reduction in the coverage of other studies; and the abandonment of the consolidation and indexi n g of t he files. Fortunately, there is reason to hope that the files may yet be cared for under other auspices. Notwithstanding these limitations, if the files are ultimately consolidated and indexed the exploration of the NRA materials will have been sufficient 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.
PAGE 660
u ministration. no . 71 -,fork materials DATE ISSUED TO no . 7 1
xml version 1.0 standalone yes
Volume_Errors
Errors
PageID P592
ErrorID 4
P712
4
P718
4
|
|
