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.;hose who sought temporary advantages, ex-ecting it would take time before
;hey could be investigated. The.'se manufacturers paid restitution, and corn-
lied full', thereafter.

 Another class, resorted to falsification of records to hide non-com-
 liance. They too eventually paid restitution, but had to be policed closely.
 .he third class, were those who used the most ingenious methods of deception,
 sortingg to coercion and intimidation of their workers, refusing to keep
 ay records, or destroying records, and who employed lawyers to defend them,
 md. who we finally had to bring before the Compliance Board in Washington.
 fortunately this was the smallest class, not more than 2% of the industry.
 ere are some interesting records of these cases in the department in
 ashington.

 A group of manufacturers located in eastern Massachusetts, manufactur-
.ng a particular type of handbag, employed children from ten to sixteen years
)Ld, to weave strips of leather by hand. This work was done in the homes.
*h- prices paid for the work were so 1-ow, these children were compelled to
rork frequently until midnight. Under the code, child labor in this branch
f the industry was stopped, and the work was taken out of the homes, and
broughtt into the factories.

 In the beaded branch of the bag industry, most of the beading is done
 n the homes. It was found impossible to transfer this work into the fac-
 ories on account of the scattered localities in which the homework is done.
 however, control of these workers was effected, with the result that the
 >rices paid these homeworkers were raised from about 70 an-hour to about 250
 Hour.

 In the year 1929, the sales volume for the industry amounted to about
 o0 million dollars. Using the 1929 figures as a basis, the sales volume for
 ;he year 1930 decreased about 30%. In 1931 40%, in 1932 60%, in 1933 -
 55%, and 1934 about 50%. This decrease in sales volume created a very serious
 situation to manufacturers who had an overhead expense that could not be
 adjusted quickly. A few manufacturers, because of the necessity for their
 ntaining a large sales volume, entered into agreements with some large
 retailers to give them rebates on their purchases, in consideration for
 hiich such retailers -romised these manufacturers that they would make them
 referred resources. The system of rebating grew rapidly in the industry,
 tarting at 2%, and increasing to 5%. Small manufacturers who were unable
 r'unwilling to offer rebates, found it difficult to sell to many of these
 large distributors.

 The average ladies' handbag contains about twenty different materials,
 d. requires about thirty main operations to complete. A general lac: of
 Ae knowledge of computing costs',br the manufacturers in the industry, has
 resulted in ruinous competition. The standards of value are set so high
 y these manufacturers, being ignorant of their costs, that the most effici-
 unt manufacturers find it impossible to compete except thru the sacrifice of
 heir profits. Strangely, it is a few of the largest manufacturers in the
 industry who are responsible for this ruinous competition. Their practices
 having resulted in financial readjustments of their businesses at various
 imes. Some manufacturers engaged i.n unfair trade practices, such as selling
pn consignment, or on a guaranteed sale, paying for retailers' advertising,
giving rebates, and granting excessive terms of sale. Because of these unfai:
trade practices, small manufacturers, and those who tried to follow sane