[Priorities Regulation. No. 1. Amendent No. 3]
[From the U.S. Government Publishing Office, www.gpo.gov]

TITLE 32—NATIONAL DEFENSE CHAPTER IX—WAR PRODUCTION BOARD SUBCHAPTER B—DIVISION OF INDUSTRY OPERATIONS PART 944—REGULATIONS APPLICABLE TO THE OPERATION OF THE PRIORITIES SYSTEM ♦
Amendment No. 3 to
Priorities Regulation No. 1
(As Amended December 23, 1941)
Establishing further provisions and definitions applicable to the operation of the Priorities System
WAR PRODUCTION BOARD DIVISION OF INDUSTRY OPERATIONS WASHINGTON, D. C.
TITLE 32—NATIONAL DEFENSE
CHAPTER IX—WAR PRODUCTION BOARD
Subchapter B—Division of Industry Operations
PART 944—REGULATIONS APPLICABLE TO THE OPERATION OF THE PRIORITIES SYSTEM
AMENDMENT NO. 3 TO PRIORITIES REGULATION NO. 1 AS AMENDED DECEMBER 23, 1941
Part 944, Priorities Regulation No. 1, is hereby amended in the following respects:
(a) The term “Director of Priorities” wherever it appears is changed to “Director of Industry Operations,” and the term “Office of Production Management” wherever it appears is changed to “War Production Board.”
(b.) Section 944.1 (b) (1) is amended to read as follows:
“(1) Any contract or purchase order for material or equipment to be delivered to, or for the account of:
“(i) The Army or Navy of the United States, the United States Maritime Commission, the War Shipping Administration, the Panama Canal, the Coast and Geodetic Survey, the Coast Guard, the Selective Service System, the Civil Aeronautics Administration, the National Advisory Committee for Aeronautics, the Office of Scientific Research and Development, Defense Supplies Corporation, Metals Reserve Company;
“(ii) The Government of any of the following countries: Belgium, China, Czechoslovakia, Free France, Greece, Iceland, Netherlands, Norway, Poland, Russia, Turkey, United Kingdom, including its Dominions, Crown Colonies and Protectorates, and Yugoslavia.”
(c)	Section 944.2 (b) (2) is amended to read as follows:
“(2) If delivery on schedule thereunder can be made only by use of Material which is already completed when such order is. received or which is scheduled to be completed within fifteen days thereafter, and which was specifically produced for delivery under an order bearing any rating higher than A-2 previously accepted, unless the proffered order bears a rating of AAA or acceptance thereof is specifically directed by the Director of Industry Operations.”
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(d)	Section 944.2 (b) (4) is amended to read as follows:
“(4) if the Material ordered is of a kind which has not been usually sold by the Person to whom such order is offered, and which either is not capable of being produced by such Person without substantial alteration of or addition to such Person’s facilities or is readily obtainable from another Person by whom it is usually sold
(e)	Section 914.2 (b) (5) is amended to read as follows:
“(5) if delivery on schedule thereunder would require interruption or change of a production schedule in a manner inconsistent with the provisions of section 944.7 (d) of this Regulation.”
(f)	Sectiéiï 944.4a is amended by deleting the third sentence thereof and by inserting in lieu thereof the following :
“After such revocation or expiration, said rating shall not be applied by any Person to whom such Order directly assigned the rating, but may still he extended (notwithstanding the provisions of any order heretofore issued) by suppliers and subsuppliers of such Person whose deliveries are rated by such Order to the extent that they could do so if such Order were still in full effect.”
(g)	Section 944.5 is amended to read as follows:
“§ 944.5 Sequence of Preference Ratings. Preference ratings in order of precedence are : AAA, AA-1, AA-2, etc. ; A-l-a, A-l-b, etc. ; B-l, B-2, etc. All preference ratings of AA heretofore assigned and in effect are hereby amended to AA-2, unless and until the deliveries bearing such ratings are otherwise specifically rerated.”
(h)	Section 944.7 (b) and (c) are amended to read as follows:
“(b) The sequence of deliveries bearing the same preference rating shall be determined by the respective dates on which the preference ratings are applied or extended to the deliveries, the delivery to which the preference rating was first applied or extended in point of time having precedence over other deliveries. If the same preference rating is applied or extended on the same day to two or more deliveries, and it is impossible to make all deliveries on schedule, the sequence of deliveries shall be determined by the delivery dates specified in the respective preference rating certificates by which such preference ratings were assigned, or if the ratings were assigned by rule, regulation, or order but no certificates were issued, then by the dates specified in the contracts or purchase orders.
“(c) Notwithstanding the foregoing provisions of this section 944.7, Material specifically produced for an order bearing a rating higher than À-2 may not be diverted and delivered under a higher rated order subsequently accepted if such Material is completed at the time of the acceptance of the higher rated order or is scheduled for completion within fifteen days thereafter, unless such diversion is specifically directed by the Director of Industry Operations, or unless the subsequently accepted order bears a rating of AAA.”
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(i)	Section 914.7 is further amended by adding at the end thereof an additional paragraph (d)‘ as follows: s
(d) Noth withstanding the foregoing provisions of this section 944.7, no Person who receives any rated order shall be required by reason of such order to terminate or interrupt a production schedule within fifteen days after receiving such order; and, if such Person is operating on a monthly or longer fixed production schedule and it is impracticable for him to terminate or interrupt such schedule before its completion, he may postpone any change therein which may be required by the rated order he has received until the commencement of his next production period, but not in any event for more than forty days after the receipt of the rated order unless otherwise permitted by the Director of Industry Operations.”
(1) Section 944.13 is amended by deleting the second sentence thereof and by inserting in lieu thereof the follo4ilg:
“No Person shall be held liable for damages or penalties for any default under any contract or order which shall result directly or indirectly from compliance with any rule, regulation, or order of the War Production Board, notwithstanding that any such rule, regulation, or order shall thereafter be declared by judicial or other competent authority to be invalid.”
(k) Section 944.15 is amended by adding thereto a third sentence to read as follows:
“Records kept by any Person pursuant to this section shall be kept either separately from the other records of such Person and chronologically according to daily deliveries by such Person, or in such form that such a separate chronological record can be promptly compiled therefrom.” .
Issued this 26th day of June 1942.
J. S. Knowlson, Director of Industry Operations.
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U. S. GOVERNMENT PRINTING OFFICE! 1942