Approved Code No. 169 Registry No. 1712-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SAVINGS, BUILDING 

AND LOAN ASSOCIATIONS 

AS APPROVED ON DECEMBER 21, 1933 

BY 

PRESIDENT ROOSEVELT 

WE 1?0 OUR PART· 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

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Approved Code No. 169 

CODE OF FAIR COMPETITION 

FOR 

SAVINGS, BUILDING AND LOAN ASSOCIATIONS 

As Approved on December 21, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been duly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

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 with 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 

met: 

NO,iV, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States pursuant to the authority vested in me by title I of 

the National Industrial Recovery Act, 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 f air 

competition be and it is hereby approved. 

FRANKLIN D. ROOSEVELT. 

Approval recommended: 

HUGH s. JOHNSON' 

Adniinistrator. 

THE WHITE HousE, Decem,ber Bl, 1933. 

26706°-244-21S--33 (279) 
DECEMBER 9, 1933. 

THE PRESIDENT' . 

The White H oiise. 

Sm: I have the honor to transmit herewith the Code of Fair Competition for Savings, Bui~ding and L?an Associations. ~he .Hearing 

was held in accordance with the requirements of the N at10nal Recovery Administration in the United States Chamber of Commerce 

Building on December 4, 1933. 

This Code was spon ored 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 10,997 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 seT"en billion seven hundred fifty million dollars. Present-day business o:f 

Building and Loan is the outgrowth of a little institution organized 

over a century ago in Frankford, Pennsylvania, and is the development 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 the nineteen hundred institutions that 

have affiliated with the Federal Home Loan Bank System seventeen 

hundred of them are members of the parent League. ·The most recent 

for1n of the e associations has been provided for by the Congress 

of the United States, authorizing for the first time the formation of 

the e thrift and home-financing 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 fifty million dollars at this time, a decrea e of 12% , 

the loss ratio has been less than one fourth of one percent of the 

assets in any one year of the depression. Furthermore, these institutions are aiding and abetting the Recovery Program not only 

through mortgages but by materially assisting in the financing of 

upkeep and repairs of homes. In 1932 when credit was almost nonexistent associations made loans of fi,e hundred thirty-two millions 

of dollars. 

A companion achievement is their record in regard to employment 

and wages. A recent surYey of associations with assets of five million dollars and over located in twenty-six states evidences an increase 

in the number of employees of 11 % over 1929. Of these only a 

trifle over one per cent fall within the minimum wage groups. In 

this instance the top of the pyramid has borne the brunt of retrenchment both in numbers and in reduction of compensation. At the 

same time the number of employees receiving $150.00 per month and 

(280) 
281 

less have increased by 37% and their wage payments have increased 

by 24%. 

I can add only that this recital should make history for the 

10,000,000 savers of the Building and Loan Associations. 

Under :fair practices there is but one important provision and that 

important one governs the heart of the business. It prohibits advertising or other representation, in any form, which is inaccurate or 

which misrepresents the services, contracts, investments, or financial 

condition o:f any association. 

No objector :from an association or from the public appeared at 

the Hearing, nor has any qbjection 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 o:f the National Recovery Administration, with the exception 

of a gualification by Labor which is included in this report. 

I find that the Code cqmplies with the pertinent provisions o:f 

clauses ( 1) and (2), subsection (a) o:f Section 3, subsection (a) of 

Section 7, and subsection (b) o:f Section 10 o:f the National Industrial 

Recovery Act. 

I recommend, therefore, that you approve the Code of Fair Competition :for Savings, Building and Loan Associations as herewith 

submitted. 

Respectfully, 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR 

SAVINGS, BUILDING AND LOAN ASSOCIATIONS 

PREAl\!BLE 

It is the declared purpose of the proponents of this Code to promote thrift and the buying and owning of homes; to operate associations :for the equitable benefit and security of shareholders and investors therein and borrowers therefrom; to promote research and 

education; to reduce and relieve unemployment; to bring about unity 

and cooperative action among all persons engaged in the management of thrift and home-financing associations. 

ARTICLE I-PURPOSE 

To effectuate the policies of Title I of the National Industrial 

Recovery Act the following provisions are established as a Code of 

Fair Competition for Savings, Building and Loan Associations and 

shall be the standard o:f fair competition and shall be binding on 

all associations as hereinafter defined. 

ARTICLE II-DEFIXITIONS 

1. The term "associations" as used herein shall include building 

and loan associations, savings and loan associations, homestead associations, cooperative banks, and similar cooperative thrift and homefinancing associations. 

2. The term " League~, as used herein m-eans the United States 

Building and Loan League, a trade association having its offices at 

10-1: South Michigan A venue, Chicago, Illinois. 

3. The term "member" as used herein shall refer to such organizations and a sociations as are members of the league, as determined 

by its Constitution. 

4. The term ' nonmember " as used herein shall mean similar associations, unaffiliated with the League, subject to this Code and any 

revisions or addition thereto and receiving the benefits thereof. 

5. The term "employee " as used herein means any person 

employed by such associations. 

G. The term "effective date" as used herein means the tenth day 

after this Code shall have been approved by the President of the 

United States. 

7. The term,: expiration date 'as used herein means June 16, 1933, 

or the earliest date prior thereto on which the President shall by 

(282) 
283 

proclamation or the Congress shall by Joint Resolution declare that 

the emergency recognized by Section I of the National Industrial Recovery Act has ended. 

8. The terms "President", "Act", and "Administrator" as used 

herein shall mean respectively the President of the United States, the 

National Industrial Recovery Act, and the Administrator appointed 

under Title I of said Act. 

9. Population for the purposes of this Code shall be determined by 

reference to the latest Federal Census. 

ARTICLE III- MINIMUM vv AcEs 

1. On and after the effective date, and to and until the expiration 

date, the minimum wages of employees covered hereby shall be: (a) 

$15 per week in any city of over 500,000 population or in the immediate 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 between 2,500 and 250,000; ( d) $12 per week in any town under 2,500 

population. 

2. Part-time workers shall be paid minimum wages of 10% or 

more in excess of the above minimum standards, calculated on an 

hourly basis. 

3. Officers, directors, or other members of the management rendering part-time service of any kind to the associations without 

compensation shall not be affected by the provisions of this Article. 

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 OF LABOR 

On and after the effective date, no employee shall work for more 

t.han an average of forty hours per week, such average being determined by periods of thirteen weeks, but such limitation shall not 

apJ?lY to: 

(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 week. 

(b) Any employee engaged as an outside repre~entative, or night 

watchmen. 

( c) Ca. es of emergency beyond the control of associations or 

periods when peak demands or Federal or State examinations place 

an unusual and temporary requirement upon any associations. 

ARTICLE V-LABOR PROVISIONS 

1. No persons under 16 years of age shall be employed, except that 

persons between 14 and 16 may be employed :for not to exceed 3 hours 

a day and those hours between 7 a.m. and 7 p.m. in such work as will 

not interfere with hours of day school. 

2. As required by Section 7 (a) of Title I o:f the J ational Industrial Recovery Act the following provisions are conditions of this 

Code: 
284 

(a) That employees shall ha':e the righ~ to organize_ and bargain 

collectively through representatives ?f their own_ choosing and shall 

be free from the interference, restraint, or coerc10n of employers of 

]abor, or the~r agents, i? the designation of ~u?~ representatives or 

in self-oraamzat10n 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 union 

or to refrain from joining, organizing, or assisting a labor organization 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 provision 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 working 

conditions, than are imposed by this Code. 

ARTICLE VI-ADMINISTRATION 

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 the 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; two representatives of nonmembers of the League to be selected in a manner approved by the 

Administrator; and 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, provided 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 Territorial 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 th~. Act, subject to the right of the Administrator to review or disapprove any action taken by the Code 

Authority: 

(a) To administer, supervise, and promote the performance of 

the provisions of this Code. 

(b) 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, disseminate the summaries thereof. 

( c) To represent associations in conferring with the President 

or the Administrator with respect to the application of this Code 

and of said Act and any regulations issued thereunder, and to hear 
285 

complaints and adjust the same; to coordinate the administration 

of this Code and su~h codes, if any, as may affect any r~lated activity, and to receive proposals for supplementary provisions and 

amendments to this Code. . 4. Associations shall be entitled to participate in and share the 

benefits of the activities of the Code Authority by assenting 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, 

and as shall be determined by the Code Authority, subject to review 

and approval by the Administrator. Assent of associations shall be 

given in writing to the Managing Director, Code Authority, care 

of the United States Building and Loan League, 104 South Michigan 

A venue, Chicago, Illinois. 

ARTICLE VII-FAIR PnACTICEs 

To effectuate the purposes of the National Industrial RecoYery 

Act all associations shall comply with the following rules goYerning 

fair competition in associations' practices, which shall become effective sixty (60) days after the approval of this Code by the President 

of the United States. 

1. (a) ,vi thin cities, towns, counties, or other trade areas, such 

associations therein as are found by the Code Authority to be of the 

sa.me class, kind, and character, shall, by agreement of a majority of 

such associations, establish maximum hours for business operations. 

(b) When such maximum hours are agreed upon and approved by 

the Code Authority, they shall apply to all associations of such class, 

king., and character in such cities, towns, counties, or other trade 

areas, provided that such associations may observe shorter hours than 

the n1aximum established. 

2. No association shall use advertising ( whether printed, radio, 

display, or of any other nature) or other representation whi~h is 

inaccurate in any material particular or which in any way misrepresents its services, contracts, investments, or financial condition. 

ARTICLE VIII-MONOPOLIES 

No prov1s10n of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or to 

discriminate against small enterprises. 

ARTICLE IX-VIOLATIONS 

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 ·hall be 

interpreted or applied so as to conflict in any way with any federal 

or state law or any rule, regulation, or ordel' which may haYe been 

or may be issued by any federal or state superYi ing authority applicable to associations. 
286 

ARTICLE XI-ALTERATIONS AND AMENDMENTS 

1. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in _accordance with the provisions of subsection (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, approval, 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 thereof. 

2. This Code, except as to 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 Administrator and such notice and hearing as he shall specify, 

and to become effective on approval by the President. 

Approved. Code No. 169. 

Registry No. 1712-02. 

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