"The ijeeker Compoany's factor.' payroll for 1934 .-.as $125,806.00,
 which is 30.1I4 of our volume of s,. les for the r.ar, which is a
 190 increase over l3. Our yc-r's operation for 19N4 showing a
 net loss. As a result of these ha.ldicas, "*e have been forced
 to discontinue making certain competitive lines, lines that the
 eastern manufacturers apparently are m'cin successfully. Our
 business so far this year being 33-1/3" less in volume than 1934.
 Naturally we are employing less people at the present time than
 we were employing lerst year and would employ under fair competi-
 tive conditions. As an example, last year at this time we were
 employing 176 people, while at present we are employing 42.*1

 The Llee-er Coaitgav'rs payroll for 1934 shows an increase
 of only 19, over 1933, hich was the lowest -;a.e level
 in the history of the industry. We consider 19" a very
 low increase. If the factory pa:-roll is 20,o of the sales
 volume, 19,. increase in the factory payroll is only an in-
 crease of 5.71o based on the sales volume. At this rate,
 a bag of e4ual value, selling for $3 wholesale in 1933,
 would have to be sold for $3.17 in 1934, which h is not an
 exorbitant increase, and this increase might eacily be
 absorbed by reducing other items of cost, which will per-
 mit the manufacturer to maintain the original "3 price.
 A handbag is made up of at least 20 different mat erials
 and requires at least 50 labor operations.

 The IvleekE.r Company claims they employed 176 ort:ers last
 year, and employ only 42 workers now. At the same time,
 they claim their volume of sales only fell off 33 1/3,,
 yet they are producing this volume, with only 24-_- of
 their workers. According to this statement, their percent-
 age of labor costs is less with 42 workers, than it was
 with 176 workers. The Sorin, season of 1934 was very bad
 throughout the industry, most of the factories reported
 33 1/35 to 50' less business thLn in the Sprin; of 1933.
 The Lieeker Co. evidently was no exception, and the loss of
 33 1/3% in volume of sales was not due to any reasons
 given by them.

 "Another handicap to which consideration should be 7iven is on
 account of our lon; distance from material market we are compelled
 to carry heavy inventories that' the eastern manufacturers do not
 have to carry."

 The necessity for carrying heav-, inventories cannot be
 attributed to XaA, nor does it justify a lower wa:,-e rate
 to be paid to workers.
 "Relative to a wage differential which we feel we arc justly
 entitled to under the circumstances as enumerated, it should
 be borne in miad that the cost of livin, in Joplin, Missouri



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