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the .ranti;2'; of 8") .Liscol.nt on the entire im.istry. It is certain
that if the large "rnufacturers a-;ren, to aIlo,- the 8,j discount, the
s vall :rnufrct1urer-; -ill be restrained fro i doi-; business "ith such
retailers miless t:ie-r cl-o .-"ree to ;rant then the 8K' discount.

 The :u.,?uu.ctturers errn on the r.verc 'e, discounts of onlr 1 on
their sales volume. .Theh the-y allol 5j for prom)t j: .ylent within an
averna2e 30 days, it is r1lo'-in. t'.e retailers at the rrte of 33,5 a rears
In dc ..ini a cash discount of 8 ., fro-! the industry, the retailer is
asking a rate of 9o,5 '. ",ear for prof)t orylent. The discount of 3,
granted b b the industr-- is a' cash discount, an'.. cash discount is a
deduction of the selling )rice, _flCL it )eco es r trade discount, pnd
because it is a trade discount, it is --i element of )rice. It has aevei
been the custom in the lr.dies' handb'i,'; industr-r tlihru its entire
existence to ever allo'- trrde discounts.

 Soiae retFiler:.- in denia.-.di-.:i. this trade discount of 5o, _ive as th
rer.oi tht the et:tro 5,' discount is requireO. as a "c.SHIOC.'" or a
".iiDDE.: P.O2iT" to i-isuve the-: r )rofit, -hlen rn%. if, ttev fail to
earn a net -rofit on nortaal :-r1: u), '-hici. tlioT ad:. to the wholesale
cost of the h-rdbaj ',en the rice to the consuier- is fi:zed. In other
T'ords, t:.ey de arncL tht the ',inufact-urer sobsirdize the'i for selling
hanidbags. The nanufncturers cannot understand -hy the-, should be
nade to subsidize the retailer just causeue they hrve used all of thel
inenuity and -irob.ably ris'-eC r!n o? their ca.'ital to construct the
l.ind of bandba:;s thrt the retriler -.ust hrve to se-' the consumer.

 The records sho'7 tn:' t the *ia.'iuf.cturers of hriidbs-; rarely ir!e
ca profit of 5P on their sales, nhan the retailer de ir:'is the e:;tra
5, discount, the in-iufaE.cturer is cor-ne).led to see'- soie other i eans of
p-rovidin:; for this additional 5'. since to .give it out of his profitss
-ould yi-)e out his entire -)rofit. If he includes fhe 5 into his cost
he 7ill be discrir-inr.tin ,-aivt the snaal1 aid 'ediu". sized retailers
-Thon he sells at the 3'; discount, *-ho '-ill be )nyinc. hini an extra prof
of 5o that he has addeu to `'is costs, but hrs given bock to the large
retailer.

 before the code, the ianu'.f' cturers too frequentl-y granted the
extra 5-,: discount to the retailer, at the expense of thle salesian, ThQ
was askzcd to cive ux *)rt of his co-'iission, -nd at the expense of
his '-,or'ers, rrho were required to ro;'-: for less \7a.;es, or accept a
lo-rer )iece --or- rrte under threat of havi:.;. the f.-ctor,! closed don,.
because of iiabilit-- to )rocuro orders at coi-)etitive prices.

 Certini retail groups are .uel!bers of an nssoci.'tion '7hose rienbe.
have a combined purchasing porTer ofJ n"ndbags eaurl to about one-third:
of the total output of the hand.)-g industry. The ieibers of this
association are refusing to .u; fro those manufacturers '-ho uill not
grant them the 87 discount.

 If the industry; is unable to iiaintain a uniform cash discount
for all *je. bers of the industry, the trade -oractice rules Twill become
ineffective mid unenforceable since no innufactuer -ho has assented
to this Prree.ient could long 'ithstand the refusal of larn;e retailers
to buy from hi7, because he refuses to sell on terms in excess of

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