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. 

u 01~°""' . . 

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 

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, custodians, 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) 
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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, organizing, 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. 
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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 President. 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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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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(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 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, 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 provisions 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 President informed as to the observances 

or nonobservance of this Code of fair competition, and as to whether 
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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 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 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 capital, August 1, 1933 ______________________________ _____________ ___ _ $16, 09,1, 475,000 

Amount of income from rentals, August 1, 1933___ ____ ____________________________________ $96,566,850 

Average hours of labor per employee, per week, 1929______________________________________ 54 

Average hours of labor per employee, per week, 1933____ _______ __ __ ____________________ ___ 72 

Average hours of labor per employee, per week, under Code______________________________ 44 

Average hourly wages paid for labor, 1929_________________________________________ ___ ____ $0. 28 

Average hourly wages paid for lahor, 1933________________________________________________ $0.125 

Average hourly wages paid for labor, 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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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 apartment- house 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. 

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