[Wood Alcohol] [From the U.S. Government Publishing Office, www.gpo.gov] PRICE SCHEDULE No. 34 Wood Alcohol OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION WASHINGTON, D. C. Table of Contents Page Price Schedule No. 34, Wood Alcohol____________________________________ 1 1. Maximum prices for wood alcohol__________________________________ 1 2. Less than maximum prices_________________________________________ 2 3. Evasion__________________________________________________________ 2 4. Records and reports______________________________________________ 2 5. Affirmations of compliance_______________________________________ 2 6. Enforcement______________________________________________________ 2 7. Modification of the Schedule____________________________________ 3 8. Definitions: (a) Person___________________________________________________ 3 (&) Wood alcohol______________________________________________ 3 9. Appendix A: Maximum prices for wood alcohol______________________ 4 Form 134:1: Affirmation of compliance for sellers of certain grades of wood alcohol_________________________________________________________ 5 Press Release: October 4, 1941, Issuance of Price Schedule No. 34______ 6 Supplement: Establishment of the Office of Price Administration________ 8 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. O. A list of Price Schedules issued is also available. (HI) PRICE SCHEDULE NO. 341 Wood Alcohol Methyl alcohol is an essential chemical which is used as an antifreeze and in the manufacture of formaldehyde, denatured alcohol, paints, varnishes, enamels, and many other products. Most methyl alcohol is produced synthetically. The remainder, herein referred to as “wood alcohol,” is produced by the distillation of wood. As a result of conditions engendered by the national defense program, the demand for methyl alcohol has increased sharply, causing a shortage of supply. A steep rise in the prices of the various grades of wood alcohol has occurred. The price of the denaturing grade, representing approximately one-half of the wood alcohol production, increased from 45 cents per gallon for tank-car quantities in the second quarter of 1941 to 60 cents per gallon in the third quarter. Substantial transactions have taken place at even higher prices. Such a price movement threatens to create an unsound market in wood alcohol and also to dislocate the market for synthetic methyl alcohol. Producers of the latter product have refrained from increasing its price. The largest producer, in fact, has announced a price reduction in recent weeks. It is therefore unnecessary at this time to establish maximum prices for synthetic methyl alcohol. After investigation and conferences with representatives of the methyl alcohol industry, the Office of Price Administration has found that, under existing conditions, there is no justifiable reason for prices of wood alcohol in excess of 60 cents per gallon for tank-car quantities. Further increases in price would, therefore, be inflationary. Accordingly, under the authority vested in me by Executive Order 8734,2 it is hereby directed that: 1. Maxirvujin prices for wood alcohol.—On and after October 10, 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, wood alcohol in containers of 50 gallons or more, and no person 1 6 F. R. 5093, No. 195, October 7, 1941. Published as Title 82, Ch. XI, Part 1335, Secs. 1335.251 to 1335.259 inclusive. * See Supplement, p. 8. 425486°—41 shall buy, offer to buy, or accept delivery of, wood alcohol in containers of 50 gallons or more, at prices higher than the maximum prices set forth in Appendix A, incorporated herein as section 9. 2. Less than maximum prices.—Lower prices than those set forth in Appendix A may be charged, demanded, paid, or offered. 3. Evasion.—The price limitations set forth in this schedule shall not be evaded whether by direct or indirect methods in connection with a purchase, sale, delivery, or transfer of wood alcohol, alone or in conjunction with any other material, or by way of any commission, service, transportation, or other charge, or discount, premium, or other privilege, or by tying-agreement or other trade understanding, or by alteration of formula or grades of wood alcohol, or otherwise. 4. Records and reports.—Every person making purchases or sales of wool alcohol in containers of 50 gallons or more after October 10, 1941, shall keep for inspection by the Office of price Administration for a period of not less than one year, complete and accurate records of 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 specifications and quantity, including the size of the containers, of the wood alcohol purchased or sold. Persons affected by this schedule shall submit such reports to the Office of Price Administration as it may, from time to time, require. 5. Affirmations of compliance.—On or before November 10, 1941, and on or before the 10th day of each month thereafter, every person who, during the preceding calendar month, has sold wood alcohol in containers of 50 gallons or more, whether for immediate or future delivery, shall submit to the Office of Price Administration an affirmation of compliance on Form 134 : l,8 containing a sworn statement that during such month all such sales were made at prices in compliance with this schedule or with any exception or modification thereof. Copies of Form 134:1 can be procured from the Office of Price Administration, or, provided that no change is made in the style and content of the Form and that it is reproduced on 8 by 10^-inch paper, they may be prepared by persons required to submit affirmations of compliance hereunder. 6. Enforcement.—In the event of refusal or failure to abide by the price limitations, report 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, (&) that the powers of the Government are fully exerted in order to protect the public interest and the interests of those persons who comply with this schedule, * See p. 5. and (c) that the procurement services of the government are requested to refrain from purchasing wood alcohol from those persons who fail to comply with this schedule. Persons who have evidence of the 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 wood alcohol, or of the hoarding or accumulating of unnecessary inventories thereof, are urged to communicate with the Office of Price Administration. 7. 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. 8. Definitions.—When used in this schedule, the term : (a) “Person” means an individual, partnership, association, corporation, or other business entity; (Z>) “Wood alcohol” means the various grades of methyl alcohol of wood origin listed in Appendix A hereof. Issued this 3d day of October 1941. Leon Henderson, Administrator. Section 9 Appendix A Maximum Prices for Wood Alcohol The following maximum prices are established for wood alcohol: (a) Tank Cabs. 1. East of the Mississippi River. Cents per gallon, delivered Denaturing grade__________________________________________________a_______ 60 Pure methyl alcohol_______________________________________________________ 60 95% methyl alcohol1_____________________________________________________ 60 97% methyl alcohol1_____________________________________________________ 60 1 Specifically designated percentages include all approximations thereof. 2. West of the Mississippi River. Maximum prices for tank car quantities in territory west of the Mississippi River are determined by adding 3 cents per gallon to the maximum prices established above for tank cars in territory east of the Mississippi River. (b) Dbums and Other Oontainebs ; Carload Quantities. Maximum prices for drums and other containers, in carload quantities, in territory east or west of the Mississippi River, are determined by adding 6 cents per gallon to the maximum prices established for tank cars in the respective territory by Paragraph (a) of this Appendix. (o) Dbums and Otheb Containers ; Less Than Cabload Quantities. Maximum prices for drums and other containers, in less than carload quantities, in territory east or west of the Mississippi River, are determined by adding 16 cents per gallon to the maximum price established for tank cars in the respective territory by Paragraph (a) of this Appendix. Form 134:1 Office for Emergency Management OFFICE OF PRICE ADMINISTRATION Washington, D. C. Affirmation of Compliance For Sellers of Certain Grades of Wood Alcohol1 For the purpose of making an affirmation of compliance with Price Schedule No. 34 of the Office of Price Administration, required by Section 5 thereof, I have examined the sales records for the month of _________________, 194—, of____________________________________________ (Name of chemical) (Name of seller) (Address) of which concern I am_____________________________ During that period no sales of wood alcohol of the grades specified in the aforesaid Price Schedule No. 34 have been made by the above-named concern in quantities of 50 gallons or more at prices in excess of those established by said Price Schedule No. 84.2 (Signature) 1 This affirmation of compliance must be signed by the seller or by a partner or officer of the seller. 1 In the event that any sales have been made at prices In excess of those established by the Schedule, the text of the above should be suitably changed and a list should be appended thereto giving with respect to each such sale, the date thereof, the name of the buyer, the quantity, including the size of the containers and the grade, of the wood alcohol sold and the reasons for exceeding the maximum price. Subscribed and sworn to before me this___________day of_______________, 194__. (Notary public) My commission expires_________________________________ Press Release October 4, 19^1—PM 1308 Issuance of Price Schedule No. 84 Methanol made from wood, commonly known as wood alcohol, a basic industrial chemical that has advanced sharply in price while markets for synthetic methanol have held firm at much lower levels, is brought under a uniform ceiling at 60 cents a gallon, delivered East of the Mississippi, in a price schedule announced today by Leon Henderson. West of the Mississippi a maximum price of 63 cents is set. This is the fourth price schedule issued by OPA in the chemical field, the others covering formaldehyde,1 a derivative of methanol; ethyl alcohol,2 and acetic acid.8 Mr. Henderson said that maximum prices would be imposed on other industrial chemicals in the near future. In previous years, prices of wood alcohol have been largely governed by the price of synthetic methanol, which is competitive for most uses. However, with demand greatly stimulated by the defense program, wood alcohol markets recently have become disordered. Prices quoted publicly during the third quarter showed advances of 25% or more and large sales have been made at prices far above any published figure. The usual differentials for grades, quantity purchases, freight zones, etc., have been widely ignored. Speculation has made its appearance and there are indications that excess inventories have been accumulated. In contrast to the inflationary situation in wood alcohol, synthetic methanol prices have held steady at 30 cents a gallon during the first three quarters of 1941 and the largest producer has announced a reduction of two cents a gallon for the fourth quarter. This producer and the three other companies responsible for virtually the entire United States output of synthetic methanol have agreed with the Office of Price Administration not to raise prices without at least 30 days’ advance notice to OPA. Under these circumstances it is not considered necessary to establish maximum prices for synthetic methanol at this time, but it is obvious that a price ceiling for wood alcohol is essential. The new schedule, which covers all transactions in containers of 50 gallons or more, sets a maximum price of 60 cents a gallon, delivered in tank car lots, for the four principal grades of wood alcohol 1 Price Schedule No. 21. * Price Schedule No. 28. • Price Schedule No. 81. sold East of the Mississippi River. West of the Mississippi 3 cents a gallon may be added to the base ceiling price. When sales in any territory are made in carload quantities in drums or other containers, the schedule allows the addition of 6 cents a gallon. In the case of less-than-carload sales in drums or other containers 16 cents may be added. The four grades named in the schedule are: Denaturing, Pure, 95%, and 97%. The percentage designations shall include all approximations thereof, it is stipulated. Sworn statements of compliance with the maximum prices are required by the schedule. Methyl alcohol (methanol) is an essential industrial chemical used as an antifreeze and in the manufacture of formaldehyde, denatured alcohol, paints, varnishes, enamels, and numerous other products. It is produced synthetically from hydrogen and carbon gases and by a wood distillation process which also recovers acetic acid and charcoal. The synthetic type is made by four large chemical companies, while production of the wood type is scattered among a large number of concerns. Output for the current year is estimated at about 54,000,000 gallons, of which only about 10% will be of wood origin. Approximately one-half of all wood alcohol produced is used as a denaturant for ethyl alcohol. The synthetic product is not used for this purpose. 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, Adminis trot or. On August 28, 1941, the President issued Executive Order No. 8875 3 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 effect regardless of the change of name to Office of Price Administration. The text of the release is as follows : AU 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. i 6 FR 1917 No. 73, April 15, 1941. » 6 FR 1965 No. 74, April 16, 1941. 8 6 FR 4483 No. 170, August 30, 1941. 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.4 * Press Release, August 30, 1941, PM 1059. If. S. GOVE R N ME IT PRINTING OFFICE: 1941