Ma" 18, 19!4


entlemen:

 There hrs been an attempt on the Dart of the Code Directors of the
 leating, Stitching and ?or'naz and Hand Embroidery Industry t" include beading
 on ladies' handbags ii 'heir Code.

 W, have just succeeded in obtaini.nz a stay, to prevent this Code from
 ,nterf-rin, with the msa-ers o beaded baes. This action we deemed necessary
 in vi-w of the fact that the Code of the Pleating, Stitching and Bonnoz and
 end Tmbroider, Indust:-y abolishes all homewor1- after June 1, and which. would
 y its operation stone such homework by the manufacturers of beaded bags.

 Very truly yours,


 Code Director
 Ladies' Handbaz Industry



 The Beaded Ba.r Industi" is a division of the LadiesT HMrndbae Industry.
here are bout 20 manufacturers; 14 can be classed as manufacturers of beaded
ags and 6 as importers. However, in both classes there is an overlatcoinp,
ome manufacturers also do imoorting and imrorters w ,o do some manufacturing,
nd others who make all of Iheir product in the United States.

 Beaded bags are imported either as a complete ba- or as beaded covers and
 finished into a bag in the United States. The chief countries *from which these
 )ags are imported are Beleium, France, Czechoslovakia and Ja-oan. The present
 ariff on beaded bags is from 601 to 904, defending on how the beading is
 *uolied. The cheao baps mostly come in at 60% duty. A -reat many imported
 trom France come in at 901 duty. The total number of finished. bags imPorted
 'n 1933 were approximately 52,053. There are no accurate figures obtainable
 'or the number of beaded bag covers imported, or the quantity of beaded bags
imoorted during the first four months of 1934, The total volume of sales for
|he industry for the year 1932 ware about $3,000,000.

 With this analysis of the industry it must be aooarent 'hat there is a
decided conflict of interests amon-st the groups of manufacturers who make a
omtulete bag in the United States, those who import the covers and finish the
Dags in the United States, and those who im-oort the finished bag. It is the
Dontentior. of the grou-c who make the comnrlete bags in the United States that
Lhe duty on the imported bags should be raised the full 50' allowable under
,he National Recovery Act, and also that no T, R. A, labels should be issued
Dy the Code Authority for use in bags -oartly imported and finished in the
United States. It is the contention of the groutr who imoort the beaded covers
kd other parts and finish the bag in the ,United States that they should be
Allowed to use the N. R. A. label since the work in finishing the bag is
performed by American labor. This grout does not p-orotest against any orooosea
increase in duties, It is the contention of the imoorters of beaded bags that
Ehe present tariff fu'ly protects the American manufacturer of beaded bags and

0o increase in tariff is required.
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