~~~iNATIONA1L RECOVERY ADMINISTRATION
-- CODE OF FAIR COMPETITION
:.,~.;. I ...FOR THE
~i";; N ;~ D LOAN ASSOCIATIONS
i~ji':AS APPROVED ON DECEMBER 21, 1933
:: PRESIDENT ROOSEVELT
,iI Do oua PART
1.i; Exctv Orde
COVRNEN PRINTING OFI
Man~~ ~~ Shdtsedn fDcmntWsigoDO ------Pie5c
r'his publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and byr district offlees of the Bureau of Foreign
and Domestic Commerce.
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An pplcaton avig ben ulymade, pursuant to and in full
compliance with the provisions of tteIo h ainlIdsra
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for Savings, Building and Loan Associations, and
hearings having been held thereon and the Administrator having~
rendered his report containing an analysis of the said code of fair
competition together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects wfith the pertinent
provisions of title I of said act and that the requirements of clauses
(1) and (2) of subsection (a) of section 3 of the said act have been
NOWC,.THEREFORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in mne by title I of
the National Industrial Recovery Alct, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations and
findings of the Administrator and do order that the said code of fair
competition be and it is hereby approved.
FRANKLIN D. ROOSEVELT.
Approval recommended :
HowH S. JoHNSON,
A dni~nis tra tor.
THc WarrTE HOUSE,
.Decemnber 9;1, 1933.
Approved Clode No. 189
CODE OF FAIR COMPETITION
AQVINGS, BUILDING AND LOAN
..As Approved on December 21, 1933
DECEMBER 9, 1933.
Tke T~hite House.
Sm: I have the honor to transmit herewith the Code of Fair Com-
petition for Savings, B~uilding and Loan Associations. The .Hearing
was held in accordance with the requirements of the National Recov-
ery Administration in the United States Chamber of Commerce
Building on December 4, 1933.
This CSode wras sponsored by the United States Building and Loan
League founded in 1892 for the purpose of preserving the integrity
of local cooperative institutions. The League's membership now
comprises 5,831 out of 10,99)7 associations, large and small, and every
State League in the Union is a member thereof.
The assets of member associations approximate six billion dollars
or 76% of the total assets of all associations amounting to. seven bil-
lion seven hundred fifty million dollars. Present-day business of
Building and Loan is the outgrowth of a little institution organized
over a century ago in Frankford, Pennsylvania, and is the develop-
ment of more than a century of experience in the specialized field of
thrift and home financing. The net profits of associations are divided
among all the members, who are both the borrowers and the investors.
It is worthy of note that of thle nineteen hundred institutions that
have affiliatedt with the Fedleral Home Loan Bank System seventeen
hundred of them are members of the parent League. The most recent
forml of these associations has been provided for by the Congress
of the United States, authorizing for the first time the formation of
these thrift. and home-financingr institutions under Federal charter.
The active and constructive policies of these associations furnish
most pleasant reading at the present time. Although total assets
have shrunk from nine billion dollars in 1929 to seven billion seven
hundred fiftyS million dollars at this time, a decrease of 12%0,
the loss ratio h~as been less than one fourth of one percent of the
assets in any one year of the depression. Furthermore, these. insti-
tutions are aiding and abetting the Recovery Program not only
through mortgages but by materially assisting in the financing o
upkeep and repairs of homes. In 1932 when credit was almost non-
existent associations made loans of five hundred thirty-two millionss
A companion achievement is their record in regard to employment
and wages. A recent survey of associations with assets of five mil~-
lion dollars and over located in twenty-six states evidences an increase
in the number of employees of 11%b over 1929. Of these only a
trifle over one per cent fall within the mninimum wage groups. In
this instance the top of the pyramid has borne the brunt of retrench-
mient both in Iinumbers and in reduction of compensation. At the
same time the number of employees receiving $150.00 per month and
less have increased by 37%/ and their wage payments have increased
I- ean add only that this recital should make history for the
1i 0,000,000 savers of the Building and Loan Associations.
Li Under fair practices there is but one important provision and that
-important one governs the heart of the business. It prohibits adver-
tising or other representation, in .any form, which is inaccurate or
which misrepresents the services, contracts, investments, or financial
condition of any association.
No objector from an association or from the public appeared at
the HeE~ing, nor has any objection been subsequently filed.
~. This Code has been accepted by the United States Building and
Loan League and has received the approval of the several Advisory
Boards of the National Recovery Administration, with the exception
of a qual'ification by Labor which is included in this report.
I fidthat the Clode complies with the pertinent provisions of
clauses (1) and (2), subsection (a) of Section 3, subsection (a) of
SSection 7, and subsection (b) of Section 10 of the National Industrial
I recommend, therefore, that you approve the Code of F'air Com-
petition for Savings, Building and Loan Associations as herewith
Hcan S. JoHNwolv,
CODE OF FAIR COMPETITION
SAVINGS, BUILDING AND LOAN ASSOCIATIONS
It is the declared purpose of the proponents of this Code to pro-
mote thrift and the buyinng and owninga of homes; to operate associa-
tions for the equitable benefit and security of shareholders and in-
vestors therein and borr~ower~s therefrom; to promote research and
education; to reduce and relieve unemployment; to bring about unity
and cooperative action among all persons engaged in the manage-
ment of thi-ift and home-financing associations.
To effectuate the policies of Title I of thle National Industrial
Recovery Act thle following provisions are established as a Code of
Fair Comnpetit~ion for Savings~, Building and Loan Associations and
shall be the standard of fair competition and shall be bindinga on
all associationIs as hereinlafter defined.
1. The termi associations as used herein shall include building
andC. loan associations, savings and loan associations, homestead asso-
ciat~ions, coop~erative bankts, and similar cooperative thrift. and home-
2. The term League "' as used herein means the United States
Building and Loan League, a trade association having its offices at
104 South M~ichiganl Avenue, Chicago, Illinois.
;3. The termn "' member "' as used herein shall refer to such organ-
izations and associations as ar~e members of the league, as determined
by its Constitution.
4. The termn nonmnember "' as usedl herein shall mean similar asso-
ciationis, uinaltiliated wiith thle League, subject to this Code and any
revisions or additions thereto and receiving the benefits thereof.
5. The termi employee as used herein means any person
emlployed by such~ associations.
G. T'he termn effective date as used herein means the tenth day
after this C'ode shall have been approved by the President of the
7. Thle ter~m expiration date as used herein means June 16,1933
or the earliest date prior ther~eto on which the President salb
C~i;:proclamarson or mue congress snanr oy Jomr; ne~squclon declare Gnar;
the iemiergency recognized by Section I of the National Industrial ~Re-
~lg: covery A~ct has; ended.
8. The terms President ", "Act and "Administrator as used
herein shall mean repectively th~e President of the United States, the
National Industrial Recovery Act, and the -Administrator appointed
isR under Tit~le I of said Act.
9~i:: Population for the purposes of this Code shall be determined by
reference to the latest FEederal Census.
E ~ARTICLE 111-I ZNIM6IS WAGES
1. On andl after the effective date, and to and until the expiration
date, the minimum wages of employees covered hereby shall be: (a)
F $15 per week in any city of over 500,000 population or in the imme~-
.dliate trade area, of such city; (b) $14.50 per week in any city of
between 250,000 and 500,000; (c) $14 per week in any city of be-
tween 2,500 and 250,000; (d) $12 per week in any town under 2,500
2. Part-time workers shall be paid minimum wages of 1070 .or
more in excess of the above minimum standards, calculated on an
3orl. Officerss directors, or other members of the management ren-
dering part-time service of any krind to the associations without
il compensation shall not be affected by the provisions of this A9rticle.
4. The wages of employees shall not be decreased, even though
the hours of such employees' work shall be reduced to conform to
the maximum hours provided in Article IV.
ARTICLE IV--Houns or LABOR
On and after the effective date, no employee shall work for more
than an average of forty hours per week, such average being deter-
mined by periods of thirteen weeks, but such limitation shall not
(a) Any employee in a managerial, executive, or administrative
capacity or in any other capacity of special or sole responsibility
who receives more than $35.00 per weekr.
(b) Any employee engaged as a~n outside representative, or night
(c) Cases of emergency beyond the control of associations or
periods when peak demands or Federal or State examinations place
an unuanal and temporary requirement upon any associations.
ARTICLE V--LABOR Pnovxslows
1. No persons under 16 years o'f age shall be employed, except that
persons between 14 and 16 may be employed for not to exceed 3 hours
a r~day and those hours between 7 a.m. and 7 p.m. in such work as will
not mterfere with hours of day school.
2.. As required by Section 7 (a) of Title I of the National Indus-
:trial Recovery Act the following provisions are conditions of this
(a) That employees shall have the right to organize and ba~rga
collectively through representatives of their own choosing and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company umion
or to refrain from joining, organizing, or assisting a labor~ organi-
zation of his own choosing.
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
3. No pr~ovision in this Code shall supersede any law within any
State which imposes more stringent requirements on employers as
to age of employees, wages, hours of work, or as to safety, health,. or
sanitary conditions, or insurance, or fire protection, general workmng
conditions, than are imposedl by this Code.
1. A Code: Authority shall be established for the administration of
this Code. This Code Authority shall include the President and two
,Vice-Presidents of thle League; ten representatives of the League,
who shall be truly representative of its membership, to be appointed
by the President of the League by and with the advice and consent
of the Board of Directors of the League;3 two representatives of non-
miembers of the League to be selected in a manner approved by the
Administrator; andl not more than three representatives, without
vote, to be appointed by the Administrator.
2. (a) In the exercise of its powers and in the performance of its
duties, the Code Authority shall use and employ the League, pro-
vided that nothing herein shall relieve the Code Authority of its
duties or responsibilities under this Code, and it shall be answerable
to the Administrator for any acts performed by the League.
(b) The League may delegate any of its duties to State or Terri-
torial leagues of Associations, including the Council of the District
of Columbia, or to such agents or committees as it may appoint, whose
personnel, duties, and powers may be changed by the League from
time to time.
3. The Code Authority shall have the following powers and duties
to the extent permitted by the Act, subject to the right of the Ad-
minist~rator to review or disapprove any action taken by the Code
(a) To administer, supervise, and promote the: performance of
the provisions of this Code.
(bj) To collect all data and statistics called for by this Code, or
required by the President or the Administrator, or pertinent to
the effectuation of Title I of said Act, and, in its discretion, dis-
seminate the summaries thereof.
(c) To represent associations in conferring with the President
or the Administrator with respect to the application of this Gode
and of said Act and any regulations issued thereunder, and to hear
complaints and a~j~ust the same; to coordinate the administration
of this Code and such codes, if any, as may affect any rplated ac-
tivity, and to receive proposals for supplementary provisions and
amendwe'nts to this Code.
4. Associations shall be [entitled to participate in and share the
benefits of the activities of the Code Authority by rassenting to and
complying with the requirements of this Code and sustaining their
pro rata share of the expenses of administration, calculated on the
basis of assets and/or such other factors as may be deemed equitable,
t and as shall be determined by the Code Authority, subject to review
given in writing to the Managing Director, Code Authority, care
of the United States Building and Loan League, 104 South Michigan
5 Avenue, Chicago, Illinois.
ARTICLE V1(7-rFAR PRABCTICES
To effectuate the purposes of the National Industrial Recovery
Act all associations shall comply with the following rules governing
fair competition in associations' practices, which shall become effee-
tive sixty (60) days after the approval of this Code by the President
of the United States.
1. (a) Within cities, towns, counties, or other trade areas, such
associations therein as are found by the Code Authority to be of the
Same class, kind, and character, shall, by agreement of a majority of
such associations, establish maximum hours for business operations.
(b) when such mlaximlum hours a~re agreed upon and approved by
the Code Authority, they shall apply to all associations of such class,
kind, and character in such cities, towns, counties, or other trade
Areas, provided that such associations may observe shorter hours than
the maximum established.
2. No association shall use advertising (whether printed, radio,
display, or of any other nature) or other representation which is
inaccurate in any material particular or which mn any way mnisrepre-
sents its services, contracts, investments, or financial condition.
No provision of this Code shall be so applied as to permit mo-
nopolies or monopolistic practices, or to eliminate, oppress, or to
discriminate against small enterprises.
Violation by any association of any provision of this Code is an
unfair method of competition.
~ARTICLE X-GENERAL Provision
It is expressly provided that no provision of this Code shall be
interpreted or applied so as to conflict in any way with any federal
or_ state law or any rule, regulation, or order which may have been
or may be issued. by any federal or state supervising authority appli-
cabjle to associations.
ARTICLE XI -ALRrimTIONS AND AM6ENDMENTB
1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order, ap-
proval, license, rule, or regulation issued under Title I of said Act,
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this Code or any conditions
imposed by him upon his approval t.hereof.
2. This Code, except as t~o provisions required by the Act~, may be
modified on the basis of' experience or changes in circumstances, such
modification to be based upon application to the Code Authority and
to the ALdminist~rator and such notice and hearing as he shaUl specify,
and to become effective on approval by the President.
Approved Code No. 169.
Registry No. 1712-02.
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UNIYERSITY OF FLORIDA
3 ~262 08585 2720
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