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 (b) The Virginia Art Goods Studios, Incorporated, is
 a pioneer in its locality. Its factory is located
 in Lynchburg, Virginia, r"here the requisite skilled
 labor is con-aratively scarce, and has to be trained.
 And even when locally trained, the ava-ilable labor
 is unable to 'cortpare with that in northern factories,
 in the volume and speed of production.

 (c) The practical and inevitable result is that the
 Virginia Art Goods Studios, Incorporated, cannot
 successfully compete with other manufacturers whose
 output per capital of employees is so much greater.

 (d) An analysis of the books of Virginia Art Goods
 Studios, Incorrorated, discloses that during a typical
 two-weeks period in September, 1933, the Cornoany's
 production and sale cost, exclusive of officers'
 sal-.ries and overhead, --.s 010,321.12. The sale price
 of the products so produced was $12,205.50, showing a
 substantial loss when salaries and overhead are taken
 into account. Unon its fall operations in 1933 our
 Comnoanr sustained a loss of ?ll,000.00. During that
 noeriod our Company ooerated under a wage scale which
 wrs a 20' increase over that previously obtaining,
 accomplished by reduction of hours of labor from 48
 to 4) per week.

 Every reasonable endeavor has been made to increase
 production byr oroper methods, but the wage scale provided
 in the Code gives little prospect of -profitable operation.

 During the first two weeks of August, 1934, the sale
 'vplue of the Comoany's -oroducts was $6,550.00, the
 production and sale cost thereof, not including salaries
 and overhead, was $4,853.47, still indicating an actual
 loss.

 Tests rnr-de in our factory by our production manager,
 vrho has h.d experience in northern factories, indicate
 that the volume of production in our factory by
 employees available in our section, is approximately
 70% of that in northern factories, due to difference in
 the efficiency of our emnplbyees in comparison.

 Although the orices of our products have left no margin
 of profit, as Pbove set forth, they are higher than those
 of northern manufacturers for similar products:, Therefore
 it is obvious that the selling price cannot be increased.
 The only source of relief would seem to be a more
 equitable wage scale for our territory.

 The Virginia Art Goods Studios has been enabled to
 continue in operation because of its ownership of patents
 on a spring line of ladies' bags which it has been able
 to manufacture in volume and sell at a reasonable profit.
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 V-. .SIN"^