-401-


From the figures furnished by the Company of their sales nd sales
costs, it would appear that the are pricing their goods without a
safe and adequate profit.

The test of efficiency in workers i'-de by their production mrn-ger,
is not bar.sed on facts, it is merely er ressin,, his individual opinion.

The statement that the pr:,ducts of the Cc.,T:-ny are sold at a. higher
price than tie products of northern factories is not sustained, p-.r-
ticula.rly since this Com)pany r.r.nufactures a unique line of ha.n"ba.gs,
different from the bags manufactured by other firms in the industry,
and further they are protected by patents which they h-ve attested to.

The Virginia Art Goods Studi-)s, Inc. do a good volume of business and
tL'-.ey are rated financially 1-s one of the outstanding firms in the in-
dustry.

It is nct necess-ry for the Virginia Art Go.ds Studios, Inc. to ob-
t,.in lower wage rates in order to co.apete with factories in the northern
territory, and the fact that they have suffered a small loss during
the ye.r 1933 is duie to the sanie rear.scns that caused other factories
in the industry to suffer larger losses, all due to the fact that they
are trying to give too great values at the prices.

The request to amend the Code to -allow a wa.-e rate of 37,1 for semi-
skilled veor.ers cannot be considered since there is no definition of
aP. semi-s'Lilled worker in the Code.

The request to amend the Code to permit learners is denied by the Code
Authority at the present time, rnd until the Code shall be amended by
agreement with the Administr-tor to *-rovide learners for the entire
indus try.

The Virginia- Art Goods Studios, Inc. has been operating under a ntany
since the effective date of the Code, Miarch 26, 1934. This stay ex-
pires Se-tember 1, 1934. The Code Authority protests against the con-
tinuance of this st-y beyond. Sr-ptember 1, 1C54, since the Virginia
Art Goodo Studios, Inc. had the entire month of August during vwhiich
th-iey niight h.ive submitted their petition. however, they filed to
do so until AuEust 27, 1734, .J they are now requesting that the
exempti .n periodd should be ex'tn,".ed to such date as the anticipated
hearring &hall have been held, and the proposed amendments disposed of.

 Very truly yours,

 CD3 -.UT ..RITY
 LADIEJ' :-AI:-..G i DUSTY


AAL: AS _________
 A. t ,t ten t' in
 Co-Le Director