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

Material Information

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

Subjects

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

Notes

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:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
004930993 ( ALEPH )
645236297 ( OCLC )

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Full Text




Registry No. 1743--14


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NATIONAL RE COVE RY ADPMIN ISTRATION





PROPI~iosED CODE OF FAIR COMPETITION

t~ii FOR THE



APARTMENT HOUSE


:! .INDUSTRY


AS SUBMITTED ON AUGUST 29, 1933




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PART


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


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UNITED STATES i I ,
GOVERNMENT PRINTING OFPIh III
WASHINGTON :1933


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CODE OF FAIR COMPETITION FOR THE APARTMENT HOUSE
INDUSTRY

ARTICLE I--PURPOSE

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.

ARTICLE II--DEFINITIONB
,: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
corporation.
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
President.
ARTICLE II11-LABOR CODE

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,
ARTICLE VT-A~DMINISTRATION
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
tJiiCode:
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.

ARTICLE 17--EXISTING CONTRACTS
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.

ARTICLE VII--COMPETITION CODE

(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.





51

(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.
ARTICLE VIII--UNFra PRACTICES
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
Code.
ARTICLE IX--GENERAL PROVISIONS

(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.
ARTICLE X REPORTS
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.

ARTICLE XI--AMENDMENTS

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.
THE NATIONAL REC'OVEBv ADMINISTRATION,
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-
tration.
Respectfully submitted.
C. A. MULLENIX, President,
National Association of Apartment House Owners,
Hickoz Building, Cleveland, Ohio.

O




UNIVERSITY OF FLORIDA

3 1262 08582 8472






















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Full Text

PAGE 1

Registry No. 17 43-14 NATIONAL RECOVERY ADMINISTRATION PROP OSED CODE OF FAIR COMPETITION FOR THE APARTMENT HOUSE INDUSTRY AS SUBMITTED ON AUGUST 29, 1933 \Pll'4-o, f\. \JI. 01~""' u . . 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 industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 I I I -Price 5 cents

PAGE 3

CODE OF FAIR COMPETITION FOR THE APARTMENT HOUSE INDUSTRY ARTICLE I-PURPOSE 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 the ownership and management of apartment buildings. ARTICLE II-DEFINITIONS SECTION 1. The references to the "President" as used herein are defined to mean the President of the United States and/or his duly authori. zed administrators or agents in the National Recovery Administration. SEc. 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 more tenants whose occupancy is for permanent or semipermanent domestic domicile and/or to two or more such 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, except regularly operated hotels or inns whose principal occupancy is transient tenants. SEc. 3. The term. "Member 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 corporation. SEc. 4. The term "National Code Committee" as used herein is defined to mean the committee appointed by the National Association 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 Monday after this Code has been approved by the President. ARTICLE III-LABOR CODE On and after the effective date of this Code all employers in the apartment-house industry shall be required: (a) Not to work any office personnel, telephone operators, or elevator operators, for more than 40 hours in any one week. (b) Not to work Rny 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, sueh 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 8972-33 (1)

PAGE 4

2 consecutive hour schedule, less than $15.00 per week in cities of over 500,000 population, or in the immediate trade areas of such city; nor less than $14.50 per week in cities between 250,000 and 500,000 population, 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 immediate trade area of such city; and in towns of less than 2,500 population, to increase all present wages by not less than 20% provided that such present wages are not now in excess of $12.00 per week. (e) Intermittent service or maintenance employees, who cannot 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%; provided that such present wages are not now in excess of the minimum wages provided for according to city trade areas 1n accordance with paragraph (d) hereof. (f) Provided further that the minimum wages of entployees in the southern states, designated as follows: Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Tennessee, Kentucky, Arkansas, Texas, Oklahonrn, and Maryland shall be based upon not less than eighty percent (80%) of the amounts set forth in paragraphs (d) and (e) hereof. (g) Provided that part time consecutive hour employees shall be paid on an hour rate determined by dividing the weekly rate by the maximum hours allowed, as above specified. (h) Provided further that in case of emergency any employee coming under the consecutive hour class may be worked overtime if overtime wages are computed on a basis of time and one third, for such overtime. (i) The minimum rates for wages provided for herein shall not be interpreted so as to reduce the wages paid as of July 1, 1933, which were in a greater amount than the minimum wage provisions of this Code, even though hours of labor are reduced. (j) On and after the effective date employers in the apartment house industry shall not employ any minor under the age of 16 years. (k) Nothing in this Code shall be interpreted to prevent employers from selecting, retaining, releasing, or advancing e1nployees on the basis of their individual merit without regard to their affiliation or nonaffiliation with any labor or other organization. (1) Employees in the apartment house industry shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from any 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 1nutual 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 join any company or other union or to refrain from joining, organ izing, or assisting a labor organization of his own choosing. (n) Failure of employers of labor in the apartment house industry to comply with the 1naximum hours of labor and n1inimum rates of pay, and other conditions of employment approved or prescribed by the President, shall be considered a violation of this Code.

PAGE 5

3 ARTICLE IV-PARTICIPATION Full membership participation in this Code, and any subsequent revision of or addition thereto, shall be extended to any person in the apartment-house industry who accepts his share of the cost and responsibility, as well as the benefits, of such membersrup participation by becoming a member of the National Association of Apartment House Owners or any affiliated organization. No initiation fee shall be charged, but there may be dues or assessments leyjed to carry on the work of said association in accordance with the provisions of the constitution and bylaws thereof. Nothing in this article or in this Code shall be interpreted as releasing any members of the apartment-house industry from full responsibility and liability under this Code, even though such members of the apartment-house industry do not become a member of the National Association of Apartment House Owners. ARTICLE V-ADMINISTRATION SECTION 1. The administration of this Code shall be under the direction of a National Code Committee of fourteen members, eleven of which shall be appointed by the President of the National Association of Apartment House Owners subject to the approval of the Board of Trustees, selected on the basis of fair geographical representation, and three members without vote appointed by the Presi dent. The President of the National Association of Apartment House Owners shall divide the United States into ten geographical districts and shall make appointments to the N atjonal Code Committee so as to have one representative from each of such geographical districts and a chairman. The National Code Committee shall have all the powers and duties conferred upon it by the President, by the constitution and bylaws of the National Association of Apartment House Owners, and by this Code and generally all such other powers and duties as shall be necessary or proper to enable it fully to administer the Code and effectuate its purpose, including the power to levy and collect equitable assessments upon the members of the industry for the purpose of defraying the expenses of presenting and administering the Code. SEc. 2. Because of the local character of the industry it shall be divided into the following divisions for the purpose of administering this Code: Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island Sou th Carolina South Dakota Tennessee Texas Utah Vermont Virginia v;.r ashington West Virginia Wisconsin Wyoming

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4 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 National Code Committee. Each Division Code Committee shall administer 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 National Code Committee and take whatever further local action may be necessary in order to effectuate the policies of the National Industrial Recovery Act within the jurisdiction of their Division. SEc. 4. If a Division as named above does not concur in the submitting of this Code or subsequent amendments thereof, or if at any time thereafter a Division fails to perform its obligat'ions as provided hereunder, the National Committee is hereby empowered to adopt a code for the Division and may provide for the administration of that code as if said National Code Committee were the executive of the Division concerned. ARTICLE VI-EXISTING CONTRACTS Where cost of performing contracts, entered into before June 16, 1933, in this industry, are increased by the application of the provisions of the N .I.R.A. and it is deemed equitable and promotive of the purposes of the Act that appropriate adjustments of such contracts to reflect increased costs to be arrived at by arbitral proceedings or otherwise, the National Code Committee is constituted the agency to assist in effectuating such a.djustments. ARTICLE VII-CoMPETITION ConE (a) On and after the effective date as provided for herein it shall be an unfair method of comp~tition for any member of the apartment house industry to lease, rent, or otherwise sell living quarters, shops, or stores in apartment house buildings at less than cost. "Cost" is meant specifically to mean the cost of labor, cost of materials, cost of operations, and cost of overhead. "Cost of labor" means wages paid for labor engaged to maintain service repairs and upkeep. "Cost of materials" means the invoice cost less trade discounts of materials, supplies, and sundries entering directly into the operation and service of apartment buildings, but not classified as permanent improvements or capital expense. "Cost of operations" means expenses of any nature which appertain directly to the work undertaken in connection with the operation or service of an apartment house, including supervision, operating supplies, fuel, light, heat, power, small tools, water, insurance, fire prevention, property taxes, salaries of officers and executives, traveling expenses, subscriptions, membership, license, and other operations fees and dues, advertising, commissions, salemen's salaries and expenses. "Cost of overhead" means depreciation on furniture and fixtures and constructed property, and interest on fair capital value as approved by the committee and by the President.

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5 (b) Cost of labor, operations, and overhead shall be based upon current expenditures. Cost of n1aterials shall be determined by the amount for the year 1932. (c) All members of the apartment-house industry shall individually file with the National Code Committee through their Division Code Committee where one exists, but where a Division Code Committee does not exist, then directly with the National Code Comn1ittee, a certified statement as to their actual cost, based upon the formula above outlined, within sixty (60) days after the effective date. Upon approval by the National Code Committee, certified statements shall be filed with the President, and at the end of ninety (90) days thereafter they shall become a p art 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 d esignate an amount to be designated by the National Code Committee necessary to pay the expenses of assembling, analyzing, appraising, compiling, verifying, and administering certified statements of cost. ARTICLE VIII-UNFAIR PRACTICES 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 Code. ARTICLE IX-GENERAL PROVISIONS (a) This Code and all the provisions thereof are expressly made subject 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, approval, licens _ e, rule, 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 eliminated as changes in circumstances or experience may indicate. It is conten1plated that from time to time supplementary provisions of this Co.de or additional codes may be submitted 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 the National Industrial Recovery Act and which shall not conflict with the provisions hereof. (c) No provisi ons of this Code shall be interpreted or applied in such a manner as to promote monopolies, permit or encourage unfair competition, eliminate, discriminate against or oppress small enterprises, discriminate against employees, labor generally, or the public, or to curtail or diminish public buying power. ARTICLE X-REPORTS With a view of keeping the Presiden t informed as to the observance s or nonobservance of this Code of fair competition, and as to whether

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6 the apartment-house industry is taking appropriate steps to effectuate the declared policy of the National Industrial Recovery Act, all members of the apartment-house industry shall furnish reports to the National Code Committee through their Division Code Committee where one exists, but where a Division Code Committee does not exist, then directly to the National Code Committee, on such subjects, at such times and in such forins as may be hereafter prescribed by the National Code Committee or by the President. ARTICLE XI-AMENDMENTS Amendments to thls 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, OHio, August 29, 1933. THE NATIONAL REr.OVERY ADMINISTRATION, Washin1tan, D.C. GENTLEMEN: The apartment house industry of the United States was organized into a national unit known as the National Association of Apartment House Owners at a convention held m Clevel,:1,nd, 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 Iowa Missouri Oregon Florida Kentucky New York Pennsylvania Illinois Michigan Ohio Utah Insurance companies and other :financial institutions owning apartmer!t house properties were also represented. All of theRe 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 interests in the State of Ohio and other states through the Cleveland Association of Apartment House Owners which came into existence in 1927. The conYention 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 c0mpiled on the apartment house industry as required by your administration, 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 apartment buildings, 3 units or more, 1929____________________________________ 643,779 Number of employees, 1929_______________________________________________________________ 2,575,116 Number of employees, August 1, 1933___ _ _______________________________________________ 1,931,337 Number of employees, under the Code___________________________________________________ 2,317,604 Amount of invested capita l , August 1, 1933 _______________________________________________ $16, 09,1, 475,000 Amount of income from rentals, August 1, 1933________ ___________________________________ $96,566,850 Average hours of l abo r per employee, per week, 1929______________________________________ 54 Av e r age hours of l ab or per employee, per week, 1933_____ _________________________________ 72 Average hours of labor per empl oyee, per week, under Code______________________________ 44 Average hourly wages paid f o r l abor, 1929________________________________________________ $0. 28 Average hourly wages paid f o r l aho r, 1933________________________________________________ $0.125 Aver age hourly wages paid for l abo r, under Code_________________________________________ $0. 318 From such information as we have been able to determine, we feel assured that the National Association of Apartment 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%% of the industry. (1) As now constituted the National Association of Apartment House Owners is the only national organization exclusively sponsoring the interests of the apartment-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 the development and application of a code. Under the plan of the National Asso ciation of Apartment House Owners it is contemplated that in State and city divisions the code of the apartment-house industry may properly be administered

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7 by the local apartment-house industry group, whether they are separate organizations, 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 apartmenthouse operation in which it is interested, and the National Recovery Administration. Respectfully submitted. C. A. MULLENIX, President, National Association of Apartment House Owners, Hickox Building, Cleveland, Ohio. 0

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