-205-
 EXHIBIT F

 COD1 AUTHORITY
 LADIESt HAEIDBAG IlDUSTRY
 347 FIFTH AVEITE
 NEW YORK

 March 13, 1935.



Col. Walter Mangum
Deputy Administrator
NRA, Division 3
Commerce Bldg.
Washington, D. C.

Dear Col. Mangum:

We.are submitting for approval the budget for the Ladiest Handbag Indus-
try as approved by the Code Authority at a meeting held March 7, 1935 at
the Hotel McAlTin, New York.

Period This budget is for the period beginning March 26, 1935, and
 ending March 25, 1936.

Amount The total amount of the budget is $110,641. The budget is di-
 ... vided into two periods -- one from March 26, 1935 to June 16,
 1935; the second from June 17, 1935 to March 25, 1936.

sate The rate of assessment if one-fourth of one oer cent of the
 sales of the members of the industry.
 The total volume of sales for the industry is estimated at
 $45,000,000. The total income from assessments at the rate of
 one-fourth of one per cent should amount to t112,500.

Labels There will be no change in the price charged fPr labels of
 $2.50 ver thousand, since the total price paid for the labels
 is credited at the end of the month to the amount of assessment
 due. In the case of the makers of low priced bags, the amount
 paid for the labels during the month should exceed the amount
 of the assessment due, in which case the difference is refund-
 ed by allowing a credit on the next purchase of labels, or by
 check if requested. In the case of makers of high -priced bags,
 the assessment generally amounts to more than the amount ad-
 vanced for labels, in which case the difference is -aid to the
 Code Authority.

Present The present budget expires on March 25, 1935. The budget was
kget estimated at $133,540, and the method of assessment was based
 on one-third of one per cent of volume of sales which it was
 estimated would be $45,000.000. The Code was effective March
 26, 1934 but the use of labels was not made effective until
 July 2, 1934. During this p-eriod no income from assessments
 was available for Code work.so that the activities of the Code
 Authority were necessarily limited and very little expense was
 incurred during the first three months.