-107-

 Articlc 7.

 In orC'.cer to mrake LffctivE th.. pr'-'visions of this Code, an
 adrinistraTiv, body to be l-nrwn as th.. Handbag Code Authority is set up.
 This Handbrg Ccie Authority, i. iich hall be truly representative of the
 industry, '.,ill be cmpou'ered to makc pruvisionis for the enforcement 6f
 this Code, an'. to makec s'. cl, recoir..i-ndti r:.ns to the Administrator as may
 bc nccss.-y grom timr to timc., It is cont---mplated that conditions may
 arisu 'V-1ic:L ':ill tnc to obstruct t.-.: smooth opc ration of the Code, and
 it will b.- th.- (.uty of thi- Handb-,g C-,d. Auth,,rity to investigate and
 recom.icnc. th- necessary rciu'-dial m,-c&surcs. To that end, full reports and
 data arc to be f.urnishc., by mLmb.-rs *-f th- in-idustry.

 Article 8.

 The National Industrial Rcc.-v-ry Act do'-,srLotrequaire manufacturers
 in an.,, industry to hold m-.mb,br-hLp in the As.sociation, but the Code
 bcin,- acni-.istLrtd for the b.n-fit of th. invi.ustry, it is only .just
 and proper, t'at ev-ry p...rscn in th,. industry p1a, his proportional share
 of the ,ir.i:'.te,,ncL of th. macliii.: r; i.cLrs.,.Zar- to effectuate the provi-
 sions of tiis Code.

 Articles and 10.

 A Iru.- ._o'ledgc of costs is abs1,UtL.ll,'y ..s-ntial to the welfare
 of any iiil.Ltstry. Pricu-cutting and ";.:-ce,..iv.j values are very frequently
 due to a lock of true, krov'ledgt of -osts.

 To iisure. the indristry iin.-t unfair competition resulting from
 lack of co;.iplttc knovlKdg-L of costs end in nLany instances from no
 knowlecdc of costs at all, the Association vill furnish uniform cost
 sheets to .-very :rij-ufacturcr in thu industry. These cost sheets will
 be approved by a cornmitt-.c of the, A.sociation and will be based on the
 cost syste-i nov in usc by thh various miwnufactururs in the industry.

 Artic1-c- 1.

 Fci' yess the industry mr.intri"i-ed its cash discount on a basis
 of 2/10/60:Cx and th,-n chr.nr-d to 37 0IE. Ditring the past four years,
 through unfair practices and grc.ed on the prart of the manufacturers,
 cash disco-uits hav ris,-n to 8' P-d, in roen. c:sL as high as C, and
 this in vicv' -if possibly only 1-'- -.-.ined i discount by the manufa.cturer,
 on the b.si- of his sales.

 This -"id. differences be t .1-1 thi- discount *-trned by the manu-
 facturer -ic. the discount h- is ccmp;ll,-d to give, is uinvarranted and
 uncallcd for, and it is ,. sourc.- of great loss to the industry and must
 .be corruct.-d.

 Unless cash discounts nr absolutely ui-.: form throughout the in-
 dustry, the tL.jptation to use vai-ious discounts '-ithin limits sot is
 a form of rebate.



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