National recovery Administration
 S 45 BroadwPy, F. Y. C.

 March 8, 1935

Colonel Wplter MEancum
Deputy Administrator
National Recovery Administration
Washington, D. C. 

 In re: Ladies Hindbag Code Authority Meeting
 S Thursday'night, March 7, 1935

fy dear Colonel Mangum:

 Three outstanding items came up for discussion at last night's
Code Authority meeting,
 i
 The first is the constantly recurring question on the part of the
Code Authority with respect to the stay granted sometime ago to the
Virginia Art Comnoany. I don't know whether you are familiar with the
situation... Briefly, it is that this company, through the good offices
of Senator Glass -obtained a stay on the provisions of this Code with-
out any knowledge*,6n the part of tie Code Authority. They have always
objected to this situation, and constantly point out the serious harm
that is being done to the Industry by the Virginia Art Company being
permitted to carry on what they consider a ruinous wage and hour
schedule.

 Again .he Code Authority voices its solemn protest against this
situation. The Code Directors informed the Code Authority that Colonel
Berry had i 'fused to re-open the mw tter, -nd therefore, there was
nothing they could do about it, I think myself, the matter was not
handled in its-early stages strictly according to Hoyle. I believe
this early action was taken by Mr. Barr when he was the Assistant
Deputy in charge. However, I am not certain about that.

 I wonder if there is anything that can be done to straighten out
ithe matter, because it is subversive of good order and discipline.

 S The second most important matter was that of the budget. The
Code Authority accepted the report and recommendation of the Budget
Committee, and within the next few days, I expect to send forward with
zy approval the new budget proposal. At that time, I will take occasion
to corn ,ent on some of-the particular items included.

 In the meanwhile, I do want to specifically draw your attention to
this. The old budget was set up on the basis of roughly $135,J00.CO.
!& certified auditor's report shows that in the nine months life of the
budget, they expended a trifle under $73,'00.00, and as a result they
have todey a cash balance of approximately $42,n00,00., The care
exercised by the Finance Committee and the Code Directors, and particu-
larly the Code Directors, is a pretty good answer to one of the state-
nents made in the Senate during this' pest week as to Code Authorities
being a "racket",