NATIONAL RECOVERY ADMINISTRATION
 45 Broadray, V. Y. C.

 April 5, 1935

colonel Walter Mangum
eputy Administrator
EA Textile Division
department of Commerce Building
ashington, D.C.

bject: Ladiest Handbag Code Authority Meeting held
 April 4, at Waldorf-Astoria. New York, N.Y.

 ear Colonel tlangum:

 Starting out to be more of a social evening and celebration of the
 irst annua.. meeting of the Code Authority the meeting really developed
 nto a leng hy, somewhat tro-iblesome affair.

 Before touching upon the troublesome problem presented let me first
 lear away the routine matters.

 There was presented an annual report of the C'airman, Secretary, and
 easurer. These reports are informative and I suggested that they be
 properly edited, put into good shape Pnc' whatever charts may be necessary,
 d proposed that all of the material be published, circulated to each and
 ;very member of the industry as well as the Administration in Washington.

 The Virginia Art matter was brought uo agPin and the Code Authority
cceded to your wishes as conveyed to them by Mr, Mittenthal and there it
as allowed to rest.

 Labor was rather articulate and while agreeing that the Code end the
Jode Authority have been of material help this past year, they have fallen
Far short of their possibilities. Labor representatives seemed to feel
Lhat it was the province of the Code Authority to help labor organize the
Lbdustry. I took occasion to point out the necessity of an exercise of
patience in these matters and it was not the province of the Code Author-
ity officials to play a part in the unionization of factories and shops.

 The troublesome matter referred to above is that of the action of
lorris White who prior to his failure for $19,C'O0,000 some three years
ago was known as the great builder. After his failure he succeeded in
obtainingg a large sum of money from the PRFC with which to start over again.

 Apparently as a'matter of expediency he has developed into being the
great dest. oyer. For a long time he took the position that he was above
%he law an%. he undoubtedlyf violated the Code in every respect possible-
in fact, t-king a keen delight in showing all arid sundry that he was above
the law; tnat he was a little better than anybody else because of his
Ability to get the inside track on Government funds. During the last
several weeks he has been building a tremendous stock of handbags aade of
Leather which I suppose normally would sell at better than a $2,00 average
and is now in the process of dumping them on the market so that they can