-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.