NAT I ONAL RECOVERY ADMIlI: STATION
 45 Broadw-py, N.Y.C.

 July 10, 1935

 ME1.'ORANiDUM

 LADIES' HANDPAOG IITDUSTRY

INDUSTRY

 The Ladies' Handbag Industry as an Americpn industry dates back
about 50 years. During toe first 20 years there was scarcely more than
6 manufacturers at a time making handbags and all of these made in
addition a full line of leather goods. In those early days the industry
as known today, was scarcely a separate industry.

 At the presen-t time there are engaged 379 manufacturing units
with 146 contra-tors and approximately 15,000 workers.

 The estimated capital investment is about $10,00,000 and its
total volume is aoout $40,0017, 000.

 The year 1927 was probably the big year of tne industry, both in
volume of sales and profits. At tnot time it was mainly, centered in
"Sew York and to a great degree almost wholly a "craft" industry.

 As a result of the soit living- and thinking of the lush years,
1925 to 1929, troubles with labor began to develop s3 that first one and
then other manufacturers decided the time had come to get a,'ay from the
big city. This was the beginning of the migration of the industry from
New York, and led to the general exodus in 1935. Today at least 75% of
the industry is scattered tnrouo-h t-ne 1'e', Englnnd States, !ew Jersey,
Pennsylvania, with two or tree factories in the South and some in the
Middle West. Prior to the scattering. o- the f; stories and leading u-n
to it, a general strike was called in the late sum:;.ier and early fall
of 1934. This strike was abortive.

 It was because of this first migration tnat so :m.uch trouble and
bitterness ensued in the early days of the RP.A. Hatred almost grew
up between the out-of-town manufacturers an6 the New York grou-.

TRADE ORGANIZATIONS

 Before those first ITRA days there htrd been t-'o major trade organi-
zations in existence, the older one oeinc the usual trade organization
type, general in its scope ard, of course, ineffective. The other, a
smaller organization concerning itself with labor c.uesticns and agreements.
ring the days of code vrritin, a third powerful organization was set
p, the members of which consisted o01 out-of-tovn manufacturers. It was
evident during that time, and at the presentation of a code to the
administration and durinT the subsequent herrirng-s end conferences that the
ew York grouc, still being in the ascendancy, wps bound to accomplish
he elimination of the out-of-torn manufacturer or at least place him
n a position where he could not longer capitalize cneap labor and long
,ours. The winning of the fig-ht by Ne'" York resulted in a sharp division
o that when the Code Authority was finally set up, it was an armed camp.
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