-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.


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