-328-

 The beaded bag manufacturers, a division of the Ladies' Handbag
Industry, is now o',erating under the Code of Fair Compoetition for
the Industry. There are about 25 manufacturers in this beaded bag
grou? om.jloying about 5000 vork.ers who do hand-beading, hand-crochet-
ing or hand-embroidering, and the work incidental to the finishing
of a bag. I

 Of the total nu-mber of workers employed in the industry not more
than 500 are employed iin the factories, the other 4500 are emnployed in
the homes to whom wrcrh is given to be made u. into bags or parts of bagI
This homework being perraitted under Section 10 of Article V of the
Code. The Code, however, provides that such homerorkers shall be
paid at the same rate as factory workers--35# per hour. '

 The beaded bag manufacturers find the greatest conroetition from,
foreign made beaded bf.s, iraoorted chiefly from tne countries of
Belgium, France and Czechoslov:.kia. In these countries .the workers
who do this work also do it in the homes, ?nd are paid on an average
of five cents an hour. The duty on th-se beaded bags in now 60,G, to .
which may be added freight, insurance and other charges amounting to
another 10% so that beaded bags in these countries are produced at
a rate equivalent to .8-. cents an hour. It is obvious from the very
outset that American manufacturers, making the same or similar
beaded bags operating under the Code of the Industry and. paying at the
rate of 350 an hour cannot long survive.

 After a trial of six w.,eeks, these bonded bag manufacturers are
convinced that it is futile to try to meet this conretition, and that
the industry must be abandoned as far as trying to make such bags in
the United States under the -resent wage pjrovisi.-ns of the Ladies'
Handbag Industry Code. Retailers and Jobbers in the United States
finding that the proC.ucts of American manufacturers are not comparabel
in value to foreign made beaded bags have ceased to buy American made
bags and are now importing their own beaded bags directly from the
manufacturers in the foreign countries mentioned. These direct tmin-
portations because of their greater values, have destroyed the American,
market for the American bead-bag manufacturers.

 The workers employed by the beaded bag industry, who number more
than 5000, find themselves unable to obtain this work, and at a time
when the demand for bended bags is greater than normal. These workers
because of their inability to work -way from home depend largely iunon
such earnings as they ca.n obtain at homework.' Their'ability to'add to
the insufficient earnings of other members of their family, did a great.
deal to make these eoe-Ie independent of public aid. Until the Code
for the industry became effective, these workers were being paid at a
rate far belor: the 'resent 33 p-er hour. Buat the rate of wage was .
forced upon them through competition with thie foreign made goods.
To reserve the beaded bag industry in the United States, and to furnij
employment to these 5000 workers who defend uoon this industry for a 
large portion of their livelihood, it is urgent that the manufacturers 1
the industry be granted the relief they ask for in this petition.


 I
 ***-


9811