Proposed code of fair competition for the apartment house industry as submitted on August 29, 1933


Material Information

Proposed code of fair competition for the apartment house industry as submitted on August 29, 1933
Portion of title:
Apartment house industry
Physical Description:
7 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Apartment houses -- Law and legislation -- United States   ( lcsh )
non-fiction   ( marcgt )


General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1743-14."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930993
oclc - 645236297
System ID:

Full Text

Registry No. 1743--14

i i
(I ililiii
~.. ii.




t~ii FOR THE








The Code for the Apartment House Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this indus try




I rsl y h ueiladn fDouetWshntn .C et

: 5








The purpose of this Code is to effectuate the policy of Title I of
the National Industrial Recovery Act insofar as it is applicable to
tfhe ownership and management of apartment buildings.

,:SECTION 1. The references to the "'President as used herein are
defined to mean the President of the Unit'ed States and/or his duly
authorized administrators or agents in the National Recovery
Administration .
SECI 2. The term "Apartment House Industry as used herein is
defined to mean those engaged in owning, managing, leasing, or
renting space in a building to three or mor~e tenants whose occupancy
is for permanent or semipermanent domestic domicile and/or to
'two or more suich -tenants in buildings where space is also leased or
~rented on the same property for one or more stores or shops or for
other commercial purposes, exccept regularly operated hotels or inns
woohose principal occupancy is transient tenants.
SEC. 3. The term "Mfember of Industry as used herein, is defined
to mean the owner, lessee, trustee, receiver, agent, or manager of a
building, whether or not such owner, lessee, trustee, receiver, agent,
or manager of a building, be a person, partnership, association, or
SEC. 4. The term National Code Committee as used herein is
defined to mean the committee appointed by the Nat~ional Associa-
tion of Apartment House Owners and by the President to administer
the provisions of this Code.
SEc. 5. The term "Effective Date" as used herein is defined to
mean the second MEonday after this Code has been approved by the

On and after the effective date of this Code all employers in the
apartment-house industry shall be required:
(a) Not to work any offce personnel, telephone operators, or
elevator operators, for more than 40 hours in any one week.
(b) Not to work'itny service or maintenance employees, who can be
put on a consecutive hour schedule, for more than 48 hours in any one
week .
(c) Intermittent service or maintenance employees, who cannot be
put on a consecutive hour schedule, such as janitors, managers, cus-
todians, caretakers, etc., employees receiving $35.00 per week or more,
and outside salesmen on a commission basis shall not be subject to the
maximum hour requirements.
(d) Not to pay office personnel, telephone operators, elevator
operators, service or maintenance employees, who can be put on a
807>--35 I 1

consecutive hour schedule, less than $15.00 per week in cities of over
500,000 population, or in t~he immediate trade areas of such city; nor
less than $14.50 per week in cities -betwseen 50,000 and 50PQ,000,pou-
lation, or in the immediate trade area of such city; nor less -than $14.00
per week in cities of between 2,500 and 250,000 population, or in the
im~mediate trade area of such city~; and in .towns of less than 3,500
population, to increase aUl present wages by not less than 20%
provided that such present ~wages are not now in .exce$sS .qf gg<00
per week.
(e) Intermittent service or maintenance employees, whok appet~
be put on a consecutive hour schedule, such as janitors, managers,
custodians, caretakers, etc., shall have their present wages increased
by not less than 25%0; provided that such present wages are not
now in excess of the minimum wages provided for according~ 49.p~tityT
trade areas in accordance with paragraph (d) hereof.
(f) Provided further that the minimum wages of eniploy~ees in ~bS1
southern states, designated as follows: Virginia, West Virg~iniai, NeatRh
Carolina, South Carolina, Georgia, Florida, Alabama, MTuifssionipi,
Louisiana, Tennessee, K~entucky, arkansas, Texps, Oaklnahou, -agg
Maryland shall be based upon not less than eighty percent .(S(j~g
of the amounts set forth in paragraphs (d) and (e) hereof.
(g) Provided that part time consecutive hour employees shall p
paid on an hour rate determined by dividing t~he weekly ra-te by .44
maxunum hours allowed, as above specified.
(h) Provided further that in case of emergency a~ny emploympe
coming under the consecutive hour class may be worked overtisle if
overtime wages are comlputed on a basis of time and one third, for
such overtime.
(i) The minimum rates for wages provided for herein shall ~ac be
interpreted so -as to reduce the wages paid as of July 1, 1933, wh~ich
were in a greater amount than the minimum wage provisions o~f this
Code, even though hours of labor are reduced.
(j) On and after the effective date employers in the apartmerlt
house industry shall not employ any mlinor under the age of 16 years.
(k) Nothing in this Code shall be interpreted to prevent employers
from selecting, retaining, releasing, or advancing employees on the
basis of their individual merit without regard to their affliationpor
nonaffiliation with any labor or other organization.
(1) Employees in the apartment house industry shall have the right
ton orrgnizen and bargain collect~ively through representatives .af their
own choosing, and shall be free from anyt interference, restraint, or
coercion of employers of labor or their agents in the designatipp. of
such representatives, or in self-organization, or in other concerted
activities for the purpose of collective bargaining, or other mutual aid
or protection in accordance with the provisions. of the National
Industrial Recovery Act.
(m) No employee in the apartment house industry or no one seeking
employment therein shall be required as a condition of employment
to 30mn any company or other union or to refrain from jolmang, orgayw
izmng, or assisting a labor organization of his own choosing.
(n) Failure of emnployers of labor in the apartments house industry
to comply with the maxsimuml hours of labor and minimum ratep~ of1
pay, and other conditions of employment approved or prescribq(47~C~,jf
the President, shall be considered a violation of this Code.

'' i'': A n dI l~ IV-PARTrd~:PATF'ON

0 Cj~~ui mermbership) participationn in this Code, and any subsequent
a pi~sion~ of on addtion thereto, shall be extended to any person mn
t4e: dear~tltm~~ent-oue~ndustry who accepts his share of the cost and
ippenshii~ty, as well as the beneftits of such membership participa-
bybecoming a member of thie National Association of Apartmen t
se Owners or any affiliated. organization. No initiation fee shall
chaged, but there mayT be dues or assessments levied to carry on
work of said association in accordance with the provisions of the
Mii~stitution and bjylaws thereof.
pd~Nothing in this. article or in this Code shall be interpreted as releats-
r any meyibers of the apartment-house industry from full responsi-
tyl~f~ and liability under this Code, even though such members of
e.~ aartmaent-ho use industry do not become a member of the N ational
Asseelation-a of Apartment House Owners,
SSmarzon 1. The administration of this Code shall be under the
6iection of a Nattioikal Code Comm~ittee of fourteen members, eleven
Swh~ih shall be appointed by the President of the N~ational Associa-
tin f AparLtmnt~ House Owners subject to the approval of the
Bonal of Trustees, selected on the basis of fair geographical repre-
sentation, and three members without vote appointed by t~he Presi-
$en~t. The President of the National Association of Apartment House
Owners shall; divide the United States into ten geographical districts
ga~d shall make appointments to the National Code Committee so as
Shave one representative from each of such geographical districts
ji a chairman. The National Code Committee shall have all the
wers and duties conferred upon it by the President, by the con-
blthtuionl and byhtiwg of the- National Association: of Apartment
Proure- Owners, and by this Code and generally all such other powers
apd3~ duties as: shall be necessary or proper to enable it fully to admin-
thikr the Code and effectuate its purpose, including the power to levy
Atndf collent equitable assessments upon the members of thel industry
bAE the purpose of defraying the expenses~ of presenting and adminl
(ietjing the Code.
;iPEc. 2. Because of the local character of the industry it shall be
(R~i~id~ed into the following diviisions for the purpose of administering
1iatia'Mairie Oklahoma
sona Maryland Oregon
neas* Massachusette Pennsylvania
fornia MCIichigan Rhode Island
orado Minnesota South Carolina
thinetiut-Mi~ssissippi South Dazkota
ware Missouri .Tennessee
da Nebraska Utah
oriaNevad'a Vermont
o New FRampshire Virginias
ois New Jersey Wash ington
intalNew MCexrico West Virginia~
sa, New Y'ork Wisconsin
nsas North Carolina WTyoming
~ftsuoaentucky OiNorth Dakota

SEc. 3. Each state or other division of the industry shall appoint
a Division Code Conunittee of three or more members of the industry,
which Division Code Committee shall be a subcommittee of the Ns--
tional Code Committee. Each Division Code Committee shatll ad-
minist-er the provisions of this Code, secure adherence thereto, hear
and adjust complaints, consider proposals and amendments thereof
and exceptions thereto, and shall. put into effect and carry out the
policy and program of the Natioonal Code Committee and take wPhert-
ever further local action mayT be necessary in order to effectuate the
policies of the National Industrial Recovery Act within the jurirsd@i
tion of their Division.
SEc. 4. If a Division as named above does not concur in the sub~
mitting of this Code or subsequent amendments thereof, or if at t
time thereafter a. Division fails to perform its obligations as provide
hereunder, t~he National Committee is hereby empowered to adopt;r
code for the Division and may provide for the administration of thks
code as if said National Code Committee were the executive of the
Dinsion concerned.

Where cost of performing contracts, entered into before June1
1933, in this industry, are increased by the application of the prort-
sions of the N.I.R.A. and it is deemed equitable and promotive of the
purposes of t~he Act that appropriate adjustments of such contratc
to reflect increased costs to be arrived at by arbitral proceedings Sji
otherwise, the National Code Committee is constituted the agency
to assist in effectuating such adjustments.


(a) On and after the effective date as provided for herein it sheRl
be an unfair method of competition for any member of the atpartmenti
house industry to lease, rent, or otherwise sell living quarters, shopry
or stores in apartment house buildings at less than cost.
Cost is meant specifically to mean the cost of labor, cost
materials, cost of operations, and cost of overhead. i
"Cost of labor" means wages paid for labor engaged to malintegp
service repairs and upkeep.
"Clost of materials" means the invoice cost less trade discounfipi
of materials, supplies, and sundries entering directly into the operation
and service of apartment buildings, but not classified as permanent
improvements or capital expense. L~
"'Cost of operations" means expenses of any nature which agW
pertain directly t~o the work undertaken in connection with the operlsr
tion or service of an apartment house, including supervision, opera
supplies, fuel, light, beat, power, small tools, water, insurance,
prevention, property taxes, salaries of officers and executives, tra
ing expenses, subscriptions, membership, license, and other opr
fees and dues, advertising, commissions, salemen's salaries
expenses. il~jl
"Cost of overhead" means depreciation on furniture and fitl~
and constructed property, a~nd interest on fair capital value'!f
approved by the committee and by the President.


(b) Cost of labor, operations,' and overead shall be based upon
curren expenditures. Cost of materials shall be determined by the
amount for the year 1932.
(c) .All members of the apartmaent-ho~use industry shall-individually
fie with the National Code Committee through their Division Code
Committee where one exists, but where a Division Code Committee
doers not exist, then directly with the National Code Commzittee, a
certified statement as to their actual cost, based upon the formula
above outlined, within sixty (60) da~ys after the effective date. UTpon
approval by the National Code Committee, certified statements shall
be filed with the President, and at the end of ninety (90) days there-
after they shall become a part of this Code.
(d) Persons subject to the jurisdiction of this Code shall pay as
a code fee to the National Code Committee or its designate an amount
to be designated by the National Code Committee necessary to pay
the expenses of assembling, analyzing, appraismng, compdmig, verifymng,
and administering certified statements of cost.
For the purpose of this Code, such unfair practices as shall be
declared to be unfair practices by the President and by the National
Code Committee, or the Division Code Committee, with the approval
of the National Code Committee, or by any amendment to the Code,
shall be deemed to be unfair methods of practice and the using or
employing of any of them shall be deemed to be a violation of this

(a) This Code and all the provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provisions of
the National Industrial Recovery Act, from time to time to cancel
or modify any order, a.pproval, license, ridle, or regulations, issued under
the said act and specifically to the right of the President to cancel or
modify his approval thereof.
(b) Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or elimlinat~ed as changes in
circumstances or experience may indicate. It is contemuplatedl that
from time to time supplementary provisions of this Code or additional
;codes may be submlitted by the National Code Committee for the
approval of the President to prevent unfair labor practices and unfair
and destructive competitive practices and to effectuate the other
purposes and policies of t~he National Industrial Recovery Act and
which shall not confic~t with the provisions hereof.
(c) No provisions of this Code shall be interpreted or applied in
such a manner as to promote monopolies, permit or encourage unfair
competition, chimmate, discriminate against or oppress small enter-
prises, discriminate against employees, labor generally, or the public,
or to curtail or diminish public buying power.
With a view of keeping the President informed as to the observances
or nonobservance of this Code of fair competition, and as to whether

the apartment,-house industry is taking appropriate steps to effectuat~e
the declared policy of the National Industrial Recovery ct, all
members of the apartment-house industry shall furnish reports to
the National Code Committee! through their Division Code Conunit-
tee where one exists, but where a Division Code Committee does not
exist, then directly to the National Code Committee, on such su~b~jects,
at such times and in such forms as may be hereafter prescribed by the
National Code Committee or by the President.


Amendments to this Code may be made by the approval of the
President or any proposed amendment submitted to him by any
member of the industry through the National Code Committee.
CLEVELAND, Omro, Aucgual 9, 1988.
W~ashington, D.C.
GENTLEMEN: The apartment house industry of the Unlited St~ates was organized
into a national unit known as the National Association of Apartment House
Owners at a convention held In Cleveland, Ohio, on August 21 and 22, 1933.
Every branch of the apartment house industry throughout the United States
was invited to attend this convention. The following states sent representatives:
California Indiana Minnesota Oklahoma
Distr ct of Columbia lowa M~issourt Oregon
Florida Kentucky Newf York Pennsylvania
Illinois Michigan Ohio U tah
Insurance companies and other financial institutions owning apartment house
properties were also represented. All of these representatives took part in the
proceedings of the convention and exercised their franchise to vote.
The National Convention and the National Association of Apartment House
Owners was sponsored through the leadership of the combined apartment house
intertests in the State of Ohio and other states through the Cleveland Association
of Apartment House Owners which came into existence in 1927.
The contention adopted and approved the attached code of fair competition.
Because it will be necessary to compile complete authentic statistical data from
each state and the District of Columbia before authentic national statistical data
can be compiled on the apartment house industry as required by your adminis-
tration, it will be impossible at, this time to file with this code authentic statistical
data for the industry. However, the following estimates, taken from consensus
of opinion, are submitted for your information:
Number of apart ment buildings, 3 units or more, 1929.-................- ~. .....-......-- 643,779
Number of employees, 1g929.................. .............__................_._......._._ 2, 575, 116
Number of employees, August 1, 1933.-.-.......~ ~..... -..... .....---- I-.--,- .... 1931, 337
Number of employ;ees, under the Code.. ................... .......~...-..~.-.. ............ 2, 317, 604
Amount of invested capital, August 1, 1933............. ..........~...........- --- ....--- .. 16,004, 475,000]
Amount of income from rentals, August I, 1933........~.-.- ....--.... ................... $96, 566, 850
Average hours of labor per employee, per week, 1929....._.............. __.~.._.......... 54
Average ours of labor per employee, per w-eek, 193:3....-..~..~. ........... ............. 72
Average hours of labor per employee, per week, under Code..... .........~...... .~ 44
Average hourly wages paid for labor, 1929......~.~~...........~.~-.............~........... 50.28
A verage hourly wiages paid for labor, 1933........~.~.~....-.........-.............. ~-...... 30. 125
Average hourly wagees paid for labor, under Code~...~......................~.........-~.... 30. 319
From such information as we have been able to determine, we feel assured
that the National Association of Apart~ment House Owners represents now the
largest part of the combined partment-house industry and upon completion of' the
organization work this association will unquestionably represent at least 66%%a/
of the industry.
(1)l As now constitu~tedd the National Association of Apartment House Owners
is the only national organization exclusively sponsoring the interests of the
apart~ment-house industry.
The present form of the National Association of Apartment House Owners is
sufficiently adequate and representative of the industry to serve as a medium for
t~he development, and application of a code. Under the plan of the National Asso-
ciation of Apartment House Ow~ners it is contemplated that in State and city
divisions the code of the apatrt~ment-house industry may properly be administered

by the local apartment-house industry group, whether they are separate organize
tions, or affiliated with the Chamber of Commerce, Real Estate Board, or any.
other association. It is considered, however, that the administration of the code
for the industry through the National Code Committee should be under the sole
jurisdiction of the National Association of Apartment House Owners, which is
separate and apart from All other interests, except the one industry of apartment-
house operation in which it is interested, and the National Recovery Adminis-
Respectfully submitted.
C. A. MULLENIX, President,
National Association of Apartment House Owners,
Hickoz Building, Cleveland, Ohio.



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