"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.)


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