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This provision like unto many others has a good moral effect but
beyond that does not go.

Section 1? forb-de the orE. ctice of directly or indirectly saying
any -oart of the advertising exoense of a purchaser, oros-oective
purchaser or agent.

Thile t: is Torctice is not so -orevalent -s in many other industries,
Hand -3pg Manuifacturers -elcomaed its inclusion in their code for the
practice was beginning to show its hea. The orovision was found
to be F deterrent.

Section 14 provided thk"t -oods shall not be sold below cost as com-
ruted by the uniform cost system -orovided in Section 7 (i), Article
VI.

The cost system was never aonroved.

Section 15: "No member of the industry shall disnose of distressed
merchandise except uoon orior notice to the Code Authority, along
with such information Ps the Code Authority and the Administrator
may prescribe. General fall competitive items shall not be sold Ps
distressed merchandise orior to December 26, general scoring comroeti-
tive items shall not be sold as distressed merchandise orior to
Liother's Day, and general summer competitive items shall not be
sold as distressed merchandise orior to July 4. Subject to review
by the Administr tor, the Code Authority may permit the sale of
merchandise at periods other than those herein established."

In vievw of the competitive situation this provision was good, but
somehow did not seem to woric. The entire industry ignored it when
they believed obliged, and you could not indict the whole crowd.
Much reaching was done, vhich in time would have had a good effect,
in fact there were at the close, slight signs of better thinking if
not of actual practice.

 2. Class 3 Trede Practices

Section 9 forbade the nr:-ctice of shinning goods on consignment.

As in many industries, particularly those dealing with dry goods and
department stores, this is a growing practice, one causing serious
trouble, and this industry desired to nin it in the bud. Argument
is freouentlv advanced that consignment practice gives an owoortun-
ity to a producer to more widely distribute his products and a
broader and quickened movement of his merchandise. Often in hear-
ings renre-entatives of the Consumers' Advisory Board expressed the
feeling that lower prices and greater buying oo)-ortunities would
accrue to the consumer, and therefore no attempt should be made to
check or stone the practice.

My own and industry's belief is, that sending out consignment mer-
chandise is a bad practice, one that should not be encouraged, nart-
icularly with style merchandise for such goods often become obsole-
cent over night or almost so.