LT


Dear Sir:

 I take pleasure in driving you my analysis of the home bag industry---
My -oinion nnd information is based 6n 3 years experience as a contractor an
design originator. '

 The contractor gives a money gum-antee corresponding to the value of thea
materiel he takcs Eray. He recei-pes *:; beac.as, and sometimes the thread and!
delivers the finished bags at '.he faotc:y. He -ays his tranegvortation both J
ways, besides the time required to go and come bac'- from the factory.

 The contractor distributes thc beads and thread from his -olace to the .2
homeworkors, and many times has to t-ach them how to make new models. He re
ceives the finished bags. insrectu them and brings tnem to the factory, whe
he does not receive always the nayment for the bags delivered, in spite of
the fact thr.t he nays the homeworker uoor- receipt of the finished bags. Th
contractor assume .ll the risK-- in che distribution of the material to the
homeworkc-rs and many tim'-.s must visit ,the home of the workers to obtain the
return of the bags and sometimes, if he does not use good- judgment in givi
the material to the nimeworker he is called -uoon to Day for the material-
not returned, at fl ctory fancy prices. .

 Below is a statement shoring a sud:y of labor cost: of bags, rer doz.:
 J
TYPE QUA T! TY A'"T3GE FP'. iD TO PAID BY FACTORY CONS
CF OF BEIJjS T: : (each) 'i ,,[- TO CONTRACTOR PRICES:
BAG ..


Zixner 800 1 h nur 1_ I0o, $.1
____________ _800_________1 __u ___ 1_____ ____I__________* ___________\
Envelope 950 ;!_ hours '*0 ___ 124 1.00
Zipoer 1350_ 2- hours 21 '___ 28 to Z*04 1.95

 *4
Envelope 1550 3 hours 2______ 28 to 30 1.95

Zioper 1850 from 3to4 hrs. 224 39* 2.95,

Env loDe 2000 from 3to41 hrs. 30 to 320 400 2.95

Zinner 2300 from 5to6 hrz. 40 to 45* 50 to 556 4.95.

Envelope 2600 from 6to7 hr6. 45 to 500 55 to 60. 4.95,

 I do not give you the cost of the beads, although I understand that t,
average landed cost in U.SA. for white beads (1000 beads) is from 24 to .
cents, and colors fro 18 to 22 centz.

 The two best seller- are the $.O,00 line and cl.95 bags.

 The code establishes 35! uer hour for this t:rne of work. To enforce ahl
wage means that the orice to be nai.d to the worker, would have to be increal
about four times, and the dollar line would ha-e to be sold $1.50 to the
consumer and $1.95 line would have to be sold about t2.50. Will the cons
buy at that rice?
9811