It was unanimously agreed last night that at the close of the fil
year, March 25, 1935, $30,000.00 be returned to the Industry, pro-rat4
according to epch unit's payment to the Code Authority. This I feel :
an excellent move, Pnd of course, will make a good impression upon
the members of the Industry.

 The third matter of moment, although not so important in itself i
the time and place for the next Code Authority meeting. This will be
annual meeting, Pnd while there was some division of opinion based on
fact that members of the Industry might misconstrue the move, it was j
that the meeting should tnke place in Atlantic City. I told the Code
Authority that there will be no objection to their having it in Atlani
City, provided, of course, that there will be no undue expense incurri
I believe, however, that unless something was to be gained along the
line of their being able to quietly sit down and consider depressing
problems, there was not much Toint in going to Atlantic City, and thai
if the expense that would be involved were not so great, a better plao
would be Chicago, since it would hove a good effect upon the Bag Induli
operating in that center.

 In this general connection, I am concerned about the set-up of Q
Code Authority. This nrescnt Code Authority's term of office expires
the end of this month. Under the Code, certain associations were redc
nized. Since the Code was written, those associations heve retired
the field agreeing in so far as p.,:ible to consolidate their members
in what is to be known as the Larias' Handbag Institute. Since that
Institute is not yet orcperly organized, it is my belief that it woub
be wise to continue the present Code Authority in office, until the
piration date of- the Act. -before that time arrives, the Institute w$
be properly organized end we then can see whether it should be recog
as the proper agency to determine the membership of the new Code AutbJ

 The Industry at this moment is in a sense at the cross-roads, aJ
it is for politic reasons that I counsel you, if it be possible to co
tinue the present Code Authority for the period named above.

 Sometime ego, I wrote asking you to -oush forward the approval o01
additional membership. We are still constantly faced with difficult
obtaining a quorum for the various meetings. I wonder what is delay.
this. I should like very much to see this approval come through to.
with your following'suggestion above, with respect to continuing the.
present Code Authority,

 Changes made by you and approved by the Code Directors with res
to two or three of the amendments proposed were formally approved by
Code Authority,.

 Very truly yours,


 /s/ 0. V. PEARSON

 0. 'd. PEARSON :
 Administration Member
OWP:LB .

9811