[By-Product Foundry and by-Product Blast Furnace Coke] [From the U.S. Government Publishing Office, www.gpo.gov] PRICE SCHEDULE No. 29 By-Product Foundry and By-Product Blast Furnace Coke OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION WASHINGTON, D. C. Table of Contents Page Price Schedule No. 29, By-Product Foundry and By-Product Blast Furnace Coke____________________________________________________________________ 1 1. Maximum prices for by-product foundry and by-product blast furnace coke_______________________________________________________ 1 2. Less than maximum prices_______________________________________ 1 3. Evasion________________________________________________________ 1 4. Records and reports____________________________________________ 2 5. Enforcement__________________________________________________ 2 6. Modification of the schedule___________________________________ 2 7. Definition: Person_____________________________________________ 2 8. Effective date of the schedule_________________________________ 2 9. Appendix A: Maximum prices for by-product foundry coke per net ton (2,000 pounds)_____________________________________________ 3 (a) General provision_______________________________________ 3 (b) Exceptions______________________________________________ 3 10. Appendix B: Maximum prices for by-product blast furnace coke per net ton (2,000 pounds)__________________________________________ 6 Form No. 129:1: Requested exceptions to section 9, appendix A, (3)___ 7 Press Release: September 19, 1941, Issuance of Price Schedule No. 29_ 8 Supplement: Establishment of the Office of Price Administration______ 11 Note.—Price Schedules have also been issued for other commodities and materials and may be had upon request to the Office of Price Administration, Washington, D. C. A list of Price Schedules issued is also available. 427293°—41 (HI) PRICE SCHEDULE NO. 29 * By-Product Foundry and By-Product Blast Furnace Coke By-product foundry and by-product blast furnace coke are important elements in the manufacture of iron and steel. Maximum prices have been established for pig iron and iron and steel scrap,2 other important elements of iron and steel costs. Prices of by-product foundry and by-product blast furnace coke are now from $1 to $1.25 per ton higher than a year ago. A further upward movement of coke prices would exert pressure upon the prices of iron and steel. The stabilization of present coke prices is important in the prevention of inflation. After full investigation and conferences with representatives of the coke industry, it has been determined that the establishment of maximum prices for by-product foundry and blast furnace coke is essential and is in the interest of national defense and the public welfare. Accordingly, under the authority vested in me by Executive Order 8734,3 it is hereby directed that: 1. Maximum prices for lay-product foundry and by-product blast furnace coke.—On and after October 1, 1941, regardless of the terms of any contract of sale or purchase, or other commitment, no person shall sell, offer to sell, deliver or transfer, by-product foundry or by-product blast furnace coke, and no person shall buy, offer to buy, or accept delivery of by-product foundry or by-product blast furnace coke at prices higher than the maximum prices set forth in Appendices A and B, incorporated herein as sections 9 and 10, respectively. 2. Less than maximum prices.—Lower prices than those set forth in Appendices A and B may be charged, demanded, paid, or offered. 3. Evasion.—The price limitations set forth in this Schedule shall not be evaded either by direct or indirect methods in connection with a purchase, sale, or delivery or transfer of by-product foundry or byproduct blast furnace coke, alone or in conjunction with any other material, or by way of any commission, service, transportation, or 1 6 F. R. 4821, No. 184, September 20, 1941. Published as title 32, ch. XI, pt. 1345, secs. 1345.1 to 1345.10, inclusive. 2 Price Schedules Nos. 10 and 4, respectively* 8 See Supplement, p. xn. other charge, or discount, premium, or other privilege, or by tying agreement or other trade understanding, or otherwise. 4. Records and reports.—Every person making purchases or sales of by-product foundry or by-product blast furnace coke after October 1,1941, shall keep for inspection by the Office of Price Administration for a period of not less than 1 year, complete and accurate records of (a) each such purchase or sale, showing the date thereof, the name and address of the buyer or the seller, the price paid or received, and the quantity of each kind or grade purchased or sold, and (&) the quantity (1) on hand, and (2) on order, as of the close of each calendar month. Persons affected by this Schedule shall submit such reports to the Office of Price Administration as it may from time to time require. 5. Enforcement.—In the event of refusal or failure to abide by the price limitations, record requirements, or other provisions of this Schedule, or in the event of any evasion or attempt to evade the price limitations or other provisions of this Schedule, the Office of Price Administration will make every effort to assure (a) that the Congress and the public are fully informed thereof, and (ft) that the powers of the Government are fully exerted in order to protect the public interest and interests of those persons who comply with this Schedule. Persons who have evidence of any offer, receipt, demand, or payment of prices higher than the maximum prices, or of any evasion or effort to evade the provisions hereof, or of speculation, or manipulation of prices of by-product foundry or by-product blast furnace coke, or of the hoarding or accumulating of unnecessary inventories thereof, are urged to communicate with the Office of Price Administration. 6. Modification of the Schedule.—Persons complaining of hardship or inequity in the operation of this Schedule may apply to the Office of Price Administration for approval of any modification thereof or exception therefrom. 7. Definition.—When used in this Schedule, the term “person” means an individual, partnership, association, corporation, or other business entity. 8. Effective date of the Schedule.—This Schedule shall become effective October 1, 1941. Issued this 18th day of September 1941. Leon Henderson, Administrator. Appendix A Maximum Prices for By-Product Foundry Coke per Net Ton (2,000 pounds) (a) General Provision The maximum delivered price for by-product foundry coke shall be the price f. o. b. cars at the governing oven plant, plus rail transportation and switching charges from that oven plant to the place of delivery. The term “governing oven plant” means that oven plant, the price at which, together with transportation charges, results in the lowest price at the place of delivery. F. o. ö. oven plant in care Location of oven plant: ^er net ton) Alabama__________________________________________________________$8.50 Chicago, Ill_______________________—-----------------------------11- 50 Ashland, Ky------------------------—----—-—--------‘-------------10. 00 Detroit, Mich____________________________________________________11. 75 Kearny, N. J_____________________________________________________12.15 Buffalo, N. Y-----------1----------------------------------------11. 75 Ironton, Ohio----------------------:--------------------------— 10.00 Painesville, Ohio________________________________________________11.25 Portsmouth, Ohio--------—----------------------------------------10.00 Erie, Pa__________________________________________________________11. 75 Philadelphia, Pa-------------------------------------------------- 11. 75 Chattanooga, Tenn------------------------------------------------- 9. 00 Fairmont, W. Va___________________________________________________ 10. 00 Milwaukee, Wis---------------------------------------------------- 12. 25 (&) Exceptions (1) New England Area. The maximum delivered price in the States of Connecticut, Rhode Island, Massachusetts, New Hampshire, Vermont, Maine, and in the adjoining areas of New York State which have customarily been included within the New England shipping area, shall be $13.75 per net ton, less $0.15 per net ton discount for cash 10 days. (2) The maximum delivered prices within the following switching districts are: District : Delivered price Chicago, Ill_________________________________________________________$12.25 St. Louis, Mo., and East St. Louis, Ill_____________________________ 12.02 Indianapolis, Ind___________________________________________________ 12.00 Terre Haute, Ind____________________________________________________ 12.00 Detroit, Mich_______________________________________________________ 12. 25 Buffalo, N. Y_______________________________________________________ 12. 50 Cincinnati, Ohio_____________________________________________________ 11.75 Cleveland, Oh’o____________________________________________________ 12.30 Erie, Pa______________________________________________________________12.25 Philadelphia, Pa____________________________________________________ 12.38 St. Paul and Minneapolis, Minn______________________________________ 14.00 (3) Exception for certain existing relationships. Whenever shipment is made from an oven plant other than the governing oven plant and the seller customarily during the 6 months preceding September 15, 1941, has received from a purchaser a price in excess of the maximum delivered price otherwise established by this Schedule, such higher price'may continue to be charged such purchaser. Each person using this exception (3) shall file with the Office of Price Administration, on or before September 27, 1941, a list of purchasers to whom this exception (3) applies and all prices received from such customer during such period. Sales or shipments to customers may not be made under this exception (3) after October 1, 1941, without the filing of such list of purchasers and prices. (4) Shipments to West Coast. On shipments to the States of California, Oregon, and Washington, the governing oven plant may be Chicago, Ill.; Provided, That, when shipment is from the oven plants listed in paragraph (a) of this Appendix, the maximum delivered price may not exceed the f. o. b. oven plant price at such oven plants plus transportation charges. (5) Shipments from Swedeland, Pa. Whenever shipment is from Swedeland, Pa., the maximum delivered price shall be the price provided in paragraph (a) of this Appendix or the price provided in this exception (5), whichever is lower, except when exceptions (1), (2), (3), or (4) are applicable the prices provided in such exceptions may be charged. When the railroad freight rate for by-product foundry coke from Swedeland, Pa., to the place of delivery, including switching charges, is: Freight rate per net ton: The maximum price per net ton shall he $0.68 and less_____________________________________________________________1 $12. 38 $0.69 to $0.96 inclusive___________________________________________________ 12. 40 $0.97 to $1.66 inclusive______________________________________________ 12. 45 $1.67 to $2.24 inclusive______________________________________________ 12. 70 $2.25 to $2.50 inclusive______________________________________________ 12- 80 $2.51 to $2.85 inclusive—______________________________________________ 12. 95 $2.86 and over_____________________________________________________________ * 10- 35 1 Delivered. 2 F. o. b. oven plant, except that on deliveries to be made in the Cumberland Valley and central Pennsylvania, the price shall be $10 per net ton, f. o. b. oven plant. (6) Delivery other than by railroad. When delivery is by means other than railroad, the maximum delivered price shall be the price as computed in this Appendix but adjusted to provide the customary differential or charge in effect on September 18,1941, for such means of delivery. Appendix B Maximum Prices for By-Product Blast Furnace Coke per net Ton (2,000 pounds) The maximum price f. o. b. oven plant on by-product blast furnace coke which may be charged by any person at each oven plant, shall be $0.75 per net ton above the weighted average price f. o. b. oven plant of such coke delivered by such person from each oven plant during the first quarter of 1941; Provided, That this Appendix B shall not apply to sales or shipments made after the issuance of this Schedule at less than $6 per net ton f. o. b. oven plant. The weighted average price means the average of the prices for which such coke was sold during such period weighted by the tons of such coke sold at each price. Every person who produces and sells by-product furnace coke shall file prices at which such coke was delivered, and the quantity delivered at each price during the first quarter of 1941. Such information shall be filed with the Office of Price Administration, Washington, D. C., on or before September 27,1941. Form 129:1. OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION Washington, D. C. Price Schedule No. 29.—By-Product Foundry and Blast-Furnace Coke Requested Exceptions to Section 9, Appendix A, (3) Supporting Data Consumers (name and address) A. Producers or shippers B. Governing ovens or switching district Premium A over B Governing ovens or switching district Oven price Freight rate Delivered price Delivered price Freight rate Oven price Press Release September 19,191fl—PM 1191 Issuance of Price Schedule No. 29 Prices for by-product foundry coke and by-product furnace coke, important elements of cost in the manufacture of iron and steel products, are frozen at approximately current levels in Price Schedule No. 29 announced today by Leon Henderson, Administrator, Office of Price Administration. The new schedule will go into effect as of October 1, 1941. Pig iron, iron and steel scrap, and semifinished and finished iron and steel products1 already are covered by ceilings and the latest move is considered essential to continued stability of the iron and steel price structure. Only by-product foundry and furnace coke are covered by the present schedule. However, Mr. Henderson said, prompt action will be taken to establish ceiling prices for beehive, domestic, or other kinds of coke, when and if it becomes necessary. Beehive coke, in particular, is the subject of study by OP A to determine the relationship between price and available supply. Cost changes in the industry and demand for beehive coke over the remainder of 1941 are among the principal points being looked into. Prices of by-product furnace coke and by-product foundry coke are now from $1 to $1.25 a ton above levels prevailing a year ago. Because a further upward movement in coke prices would exert a disturbing influence on the prices for iron and steel products, Mr. Henderson said, it has become necessary to set maximum prices. Establishment of ceiling prices on by-product furnace coke and by-product foundry coke follows extensive consultation with members of the industry. The existing price structure, which, in effect, is maintained in the OPA schedule, was stated by the producers to be satisfactory and many of their suggestions as to regional differentials and trade practices have been followed. Estimates place the 1941 production of by-product coke at roughly 60,000,000 tons. About 75 percent of this total is produced and consumed by the large steel companies in the production of pig iron and, hence, is not sold in the open market. Of the remaining 25 percent, somewhat less than half is domestic coke used for heating 1 Price Schedules Nos. 10, 4, and 6, respectively. purposes by householders. The balance comprises by-product furnace coke and by-product foundry coke available for use by foundries and iron and steel producers who do not make their own coke. By-product foundry coke is a large size, high-quality coke that is used by foundries in the production of iron and steel castings. It is made from bituminous coal by the steel companies, by merchant ovens, and by public utilities. By-product furnace coke is used in blast furnaces which make pig iron out of iron ore and limestone. Like foundry coke, it is made by steel companies, merchant ovens, and to a lesser extent by public utilities. At the present time, however, only a few producers are selling by-product furnace coke on the open market. Beehive coke is made by carbonizing bituminous coal in the beehive ovens, a process which does not permit the recovery of by-products. The production of beehive coke has been stimulated greatly by the increased demands of the steel industry. Domestic coke and water gas coke are not metallurgical types and have no important bearing on the price structure of the iron and steel industry. Maximum prices for by-product foundry coke, f. o. b. oven in cars, range from $8.50 to $12.25 per net ton of 2,000 pounds, depending upon the location of the oven plant. However, the complexity of the prevailing price structure is recognized by several exceptions to the general provisions. In order not to disturb, for the time being, existing relationships between coke producers and foundries using particular grades of coke, the schedule allows prices above the ceiling to be charged under certain conditions. To qualify under this exception the seller (1) must have received from such a foundry a price in excess of the ceiling price during the 6 months ending September 15, 1941, and (2) must file with OPA on or before September 2T, 1941, a list of the foundries to which the exception applies, together with the prices at which past sales were made. There is considerable doubt as to whether it is desirable to continue this provision as a permanent part of the schedule. The entire matter will be studied by OPA as soon as detailed information on existing relationships of this type has been accumulated. Any producer or buyer of foundry coke in a position to establish that the exception is causing undue hardship may apply to OPA for relief under section 6 of the schedule, which provides that “persons complaining of hardship or inequity in the operation of this schedule may apply to the Office of Price Administration for approval of any modification thereof or exception therefrom.” The maximum price, f. o. b. oven, on by-product furnace coke, according to the schedule, shall be 75 cents per net ton above the weighted average price, f. o. b. oven, at which deliveries were made during the first quarter of 1941. The weighted average price means the average of the prices for which by-product furnace coke was sold during the first 3 months of 1941, weighted by the tons sold at each price. Producers and sellers of by-product furnace coke are required to file with OP A on or before September 27, 1941, their prices and quantities sold during the first quarter of 1941. Supplement Establishment of the Office of Price Administration On April 11, 1941, the President issued Executive Order No. 8734,1 establishing the Office of Price Administration and Civilian Supply, which combined the Price, Consumer and, in part, Agricultural Divisions of the National Defense Advisory Commission. On April 15, 1941, Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, issued an order ratifying action taken by the Price Stabilization Division prior to the Executive Order of April 11, 1941. This order provided as follows: 1. All price schedules, instructions, announcements, forms, and notices heretofore issued, promulgated, or adopted, and all committees formed by the advisers on price stabilization and consumer protection, members of the Advisory Commission to the Council of National Defense, or by the Price Stabilization and Consumer Divisions of the Advisory Commission to the Council of National Defense are hereby ratified, adopted, and continued in effect, until modified, terminated, or superseded, as price schedules, instructions, announcements, forms, notices, and committees, of the Office of Price Administration and Civilian Supply and the Administrator thereof. 2. This ruling is issued under, and in execution of the purposes of, Executive Order No. 8734, issued by the President on April 11, 1941. Issued this 15th day of April 1941? Leon Henderson, Administrator. On August 28, 1941, the President issued Executive Order No. 88758 which transferred the Division of Civilian Supply from the Office of Price Administration and Civilian Supply to the Office of Production Management. The title of the Office of Price Administration and Civilian Supply was changed to the Office of Price Administration. On August 30, 1941, Leon Henderson issued a press release stating that all action taken by the Office of Price Administration and Civilian Supply remained in full force and 1 6 F. R. 1917 No. 73, April 15, 1941. * 6 F. R. 1965 No. 74, April 16, 1941. s 6 F. R. 4483 No. 170, August 30, 1941. H effect regardless of the change of name to Office of Price Administration. The text of the release is as follows: All price schedules issued by the Office of Price Administration and Civilian Supply remain in full force and effect regardless of the change of name announced in the President’s Executive order of Thursday, Leon Henderson, Administrator of the Office of Price Administration, announced today. “The Executive order,” Mr. Henderson said, “merely provides that the title of the Office of Price Administration and Civilian Supply be changed to Office of Price Administration. It does not affect in any way the powers of the agency in regard to price control. Consequently all price ceiling schedules issued and all other action taken by this agency under the prior name remain fully effective under our new name.” * * Press release, August 30, 1941, PM 1059. N. S. GOVERNMENT PRINTING OFFICI: IM!