[Coordination Service : Digests of Interpretations of Specific Price Schedules and Regulations]
[From the U.S. Government Publishing Office, www.gpo.gov]
United States of America Office of Price Administration Washington, D. C.
COORDINATION SERVICE
Digests of Interpretations of Specific Price Schedules and Regulations
This Service is a compilation of digests of interpretations of price schedules and regulations. The interpretative material contained herein has been digested from interpretations issued by responsible OPA officials to members of industry and OPA field offices. Consequently, this interpretative material shows the trend of official opinion. The interpretations which are the basis of this material are subject to reconsideration and revision at any time by OPA.
INTRODUCTION
This Service contains digests of general materials and of interpretations applicable to price schedules and regulations of the various commodity branches.
Supplements in the form of insert pages will be issued periodically in order to bring the Service up-to-date. These supplements will contain digests of new interpretations that may be issued and any corrections, revisions and deletions of previously published digests that may be necessary.
TABLE OF CONTENTS
With the exception of digests of general materials, the material contained in this Service is divided according to the applicable commodity branches set forth on the following pages.
APPAREL
Price Schedule or Regulation Page
Maximum Price Regulation No, 95 - Women’s Nylon Hosiery.
Applicability ....................... ... .............. ..... 1:1
Price Determination ••••••• ................. • •••••••••• 1:2
Violations and Evasions ..................... ....... ........ • • 1:2
Maximum Price Regulation No. 153 (Revoked) - Women’s, Girls’ and Children's Outerwear Garments.
Cross-Reference ....... ............................... ........... 1:2
Maximum Price Regulation No. 157 - Sales and Fabrication of Textile^
Apparel and Related Articles for Military Purposes.
Applicability ••.•••••••••••• ....................... .. 1:3
Price Determination •••••............................ . 1»4
Definitions ... .................... ••••••.•••••••••••• 1:6
Maximum Price Regulation No. 172 - Charges of Contractors in
Apparel Industry. Applicability ••••••..••• .................. ......... 1:6
Price Determination ................................ . 1:6
Classification . .......... ..... ........ •••••*•• 1:8
Maximum Price Regulation No. 177 - Men's and Boys' Tailored
Clothing. Applicability .......................... 1:8
Price Determination 1:9
Definitions ••••• ........... ••••••••• ............ • . 1:11
Records and Reports................................... 1:11
Maximum Price Regulation No. 178 - Women's Fur Garments. Applicability ..................................... 1:12
Price Determination ..................................... 1:12
Records and Reports ... .................... ••••••••••• 1:15
Maximum Price Regulation No. 208 - Staple Work Clothing.
Applicability ... ........ . ...... ............ 1:16
Price Determination • 1:17
Maximum Price Regulation No. 221 - Manufacturers' Prices for Fall and Winter Knitted Underwear.
Applicability .... .......................... •••••••••• 1:17
Price Determination .... ................. ............. 1:18
Maximum Price Regulation No. 274 - Women's Silk Hosiery. Applicability ............. ........................... 1:18
Maximum Price Regulation No. 287 - Manufacturers* Prices for
Women's, Girls I Children's and Toddlers' Outerwear Garments.
Applicability ............. ................... ..•••••. 1:18
Price Determination ••••••••••••••• ..................... 1:20
Classifications ...... • •••••••••••• ................... 1:25
Violations and Evasions................................ 1:25
Records and Reports .................................. 1:26
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APPAREL, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. 304 - Specified Utility Shirts. Applicability ••••••••••. ............................ • • • . 1:26
Maximum Price Regulation No. 330 - Retailers* and Wholesalers’ Prices for Women’s, Girls’ and Children’s Outerwear Garments.
Applicability ..... ......................................... 1:26
Price Determination .................................. ..••••• 1:27
Classification ........................................... 1:30
Violations and Evasions ....................................... 1:30
Definitions ........................................... . • . . 1:30
Records and Reports......................................... 1:30
Maximum Price Regulation No. 332 - Simplified Men’s and Boys’ Shirts and Pajamas.
Price Determination ................................ ......... 1:31
Violations and Evasions ......................... • ......... 1:32
Maximum Price Regulation No. 339 - Women’s Rayon Hosiery.
Price Determination......................................... 1:32
Definitions ................................................... 1:33
Records and Reports ..••• ..................................... 1:33
Maximum Price Regulation No. 385 - Specified Military Uniforms. Applicability..............••••......................... • • • 1:34
Price Determination •••••.••••••••••••••••• 1:34
Maximum Price Regulation No. 438 - Manufacturers* Prices for Certain Fall and Winter Outerwear.
Price Determination •••••••••••........................ . • • 1:34
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BUILDING MATERIALS
Price Schedule or Regulation Page
Price Schedule No. 40 - Builders' Hardware and Insect Screen Cloth Applicability..................................................... 2:1
Price Determination ................................................. 2:1
Classification ........................................... . . . . . 2:1
Definitions......................................................... 2:1
Price Schedule No. 45 - Asphalt or Tarred Roofing Products Applicability .................................................. 2:2
Price Determination.................................................... 2:2
Taxes.................................................................. 2:2
Violations and Evasions ..... ..................................... • 2:2
Records and Reports ................................................ 2:2
Price Schedule No. 96 - Domestic Fuel Oil Storage Tanks Applicability ................... ..... ........................ 2:5
Price Determination.................................................. 2:3
Violations and Evasions ............................................... 2:3
Definitions ...................................................... . 2:3
Labeling ............................................................ 2:3
Price Schedule No. 100 • Cast Iron Soil Pipe and Fittings Applicability ..... ............................................. ..... 2:4
Definitions.......................................................... 2:4
Maximum Price Regulation No. 206 - Vitrified Clay Sewer Pipe and Allied Products
Applicability ......................................................... 2:4
Taxes.................................................................. 2:4
Maximum Price Regulation No. 224 - Cement Price Determination.............................................. 2:5
Commissions......................'.................................... 2:5
Maximum Price Regulation No. 251 - Construction and Maintenance Ser** vices and Sales of Building and Industrial Equipment and Materials on an Installed or Erected Basis
Applicability ......................................................... 2:5
Price Determination.................................................... 2:7
Taxes................................................................ 2:8
Records and Reports .................................................. 2:8
Maximum Price Regulation No. 416 - Dead-Burned Grain Magnesite Applicability................................................... 2:8
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CHEMICALS AND DRUGS
Frio« Schedule or Regulation Page
Maximum fries Regulation No. 28 - Ethyl Alcohol (Excluding West Coast Ethyl Alcohol) Applicability.................................. 3:1
Price Determination ............................. 3:1
Records and Reports •.......................... . • 3:1
Price Schedule No. 51 - Acetic Acid Price Determination ........................ 5:1
Maximum Price Regulation No. 36 - Acetone Price Determination 3:2
Maximum Price Regulation No. 37 • Butyl Alcohol and Esters Thereof Price Determinatioh 5:2
Price Schedule No. 38 • Gylcerine Price Determination - Taxes 3:2
Price Schedule No. 68 - Hide Glue Stock Applicability ............................... 3:2
frice Determination 3:2
Classification •• •• ............ • ••••••...•• 5:3
Price Schedule No. 76 - Hide Glue Applicability .•••••••••••••••••••.••••• 3:3
Price Determination ••••••••••••••••••••••• 3:3
Violations and Evasions •••••..••••• ....... •••• 3:3
Price Schedule No. 79 • Carbon Tetrachloride Applicability................................ 3:3
Price Determination • ••••••••*•••...........•••• 3:4
Violations and Evasions • •...••••••............ 3:4
Price Schedule No. 80 - Lithopone Applicability ••• ........ • •••••«•••••••••• 3:4
Price Determination ................• ••••••••• 3:4
Price Schedule No. 98 - Titanium Pigments Applicability.............................. 3:4
Maximum Price Regulation No. 170 - Anti-Freese Applicability ••••••••• ............. •••••••••••• 3:5
frice Determination •••••..................... 3:5
Definitions ••••••• ................ •••••••••••• 3:5
Records and Reports ••••••••••••••••••••••• 3:5
Maximum frice Regulation No. 171 - Film Scrap Price Determination •••••••••...............•••••• 3:5
Maximum frice Regulation No. 179 - Pine Oil frice Determination •••••••••••••••••..•••• 3:5
Maximum frice Regulation No. 192 - Imported Cresylic Add Applicability................................ 3:6
Price Determination • •••••••••••••••••••••• 3:6
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CHEMICALS AUD DRUGS, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. ZOS - Vitamin A Natural Oils And Concentrates
Applicability............................................ 3:6
Maximum Price Regulation No. 264 - Industrial Waxes Price Determination .................................. 3:6
Maximum Price Regulation No. 278 - Totaquina and Totaquina Products Records and Reports ••••.............................. 3:7
Maximum Price Regulation No. 282 - Certain Private Formula Pharmaceutical Proprietary Drug and Cosmetic Products Price Determination ,•••••••.............................. 3:7
Maximum Price Regulation No. 345 - Thermoplastic Scrap Applicability •••••• ............................ .......... 3:8
Price Determination .................................... 3:8
Maximum Price Regulation No. 390 - Household soaps and Cleaners Sold By Retail Food Stores
Applicability .............................................3:8
Price Determination ..................................... 3:8
Maximum Price Regulation No. 391 - Household Soaps and Cleaners Sold By Manufacturers And Certain Wholesalers
Applicability •••••••••••••••• ....................... ••••• 3:8
Price Determination ••••. ........................••••••••• 3:8
Violations and Evasions ................................ 3:9
Maximum Price Regulation No. 392 - Packaged Drugs Applicability •••••• I...................................... 3:9
Price Determination • ••••••••.•••••••••••••• 3:9
Maximum Price Regulation No. 393 - Packaged Cosmetics Applicability • ........................ ..F. ......... 3:9
Maximum Price Regulation No. 431 - Charcoal Price Determination ................................ 3:9
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CONSUMER DURABLE GOODS
Price Schedule or Regulation Page
Price Schedule No. 57 - Wool Floor Coverings. Applicability.................................................. 4:1
Violations and Evasions.............................................. 4:1
Price Schedule No. 64 - Domestic Cooking and Heating Stoves.
Applicability........................................................ 4:1
Price Determination ................................................. 4:1
Taxes......................................................... 4:2
Violations and Evasions............................................ 4:2
Maximum Price Regulation No. 65 - Resale of Floor Coverings. Applicability.................................................. 4:2
Price Determination.................................................. 4:2
Violation and Evasions ............................................. 4:2
Price Schedule No. 83 - Radio Receivers and Phonographs. Applicability................................................... 4:3
Price Determination.................................................. 4:3
Violations and Evasions ............................................. 4:3
Price Schedule No. 84 - Radio Receivers and Phonograph Parts.
Applicability ........... ........................................... 4:4
Price Determination ................................................ 4:5
Definitions ......................................................... 4:5
Price Schedule No. 102 - Household Mechanical Refrigerators. Applicability.................................................. 4:5
Price Determination.................................................. 4:5
Maximum Price Regulation No. 110 - Resale of New Household Mechanical Refrigerators.
Applicability....................................................... 4:6
Price Determination............................................... 4:6
Definitions......................................................... 4:7
Maximum Price Regulation No. Ill - New Household Vacuum Cleaners And Attachments.
Applicability...................................................... 4:7
Price Determination ................................................. 4:7
Labeling............................................................. 4:7
Violations and Evasions............................................. 4:7
Maximum Price Regulation No. 116 - China and Pottery. Price Determination............................................ 4:8
Definitions • •...................................................... 4:8
Maximum Price Regulation No. 139 - Used Household Mechanical Refrigerators,
Applicability ..................................................... 4:8
Violations and Evasions............................................ 4:8
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CONSUMER DURABLE GOODS, Continued
Price Schedule or Regulation
Page
Maximum Price Regulation No. 158 - Resale of War Bicycles - Distributors and Dealers.
Price Determination ......................................................
Maximum Price Regulation No. 162 - Ceiling Prices For the Sale And Rental of Used Typewriters.
Price Determination.............................................. , 4,9
Maximum Price Regulation No. 263 - New Phonograph Records and Record
Scrap.
Applicability.......................................................
Price Determination.......................... ,................ 4:10
Violations and Evasions .................................. ...... 4:10
Maximum Price Regulation No. 294 - Used Household Vacuum Cleaners »nd Attachments For Used Household
Vacuum Cleaners. Applicability................................................. 4:10
Price Determination................................................ 4:10
Violations and Evasions ..............................,..............4:11
Maximum Price Regulation No. 429 - Certain Used Consumer Durable
. Goods. Applicability................................................ 4:11
Maximum Price Regulation No. 476 - Luggage. Applicability................................................... . 4:11
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COTTON AND SYNTHETIC TEXTILE PRODUCTS
Price Schedule or Regulation Page
Price Schedule No. 7 - Combed Cotton Tarns And The Processing Thereof Applicability •••••••• .......................... .......... 5:1
Price Determination .................................... 5:1
Premiums ••••••••••••••••••• .............................. 5:1
Violations and Evasions ••••••.................’ • .........5:2
Definitions .............................................. 5:2
Maximum Price Regulation No. 11 - Fine Cotton Goods Applicability « . • ...............• . . ............•••••• 5:2
Price Determination . •................................. 5:3
Definitions ............................................. 5:3
Price Schedule No. 23 - Rayon Grey Goods Applicability ........................ ..................... 5:3
Price Determination ...................................... 5:4
Violations and Evasions ................. ...... .......... 5:4
Records and Reports • •••••••.••••••••••••••• 5:4
Maximum Price Regulation No. 33 - Carded Cotton Tarns And The Processing Thereof
Applicability ••••................................. •••••• 5:4
Price Determination - Commissions.......................... 5:5
Violations and Evasions ........ ........................ 5:5
Price Schedule No. 35 - Carded Grey And Colored-Tarn Cotton Goods Applicability •••• ...................... ••••••«••••••••••• 5:5
Price Determination .............................. •••••• 5:6
Premiums .•••••••....................................... 5:6
Definitions • 5:7
Records and Reports ..................................... 5:7
Maximum Price Regulation No. 59 - Woven Decorative Fabrics Applicability....................................... 5:7
Price Schedule No. 89 - Bed Linens Applicability......................................... 5:8
Price Determination.....................• •••••.••••• 5:8
Premiums ••.••••••••• ................................... 5:8
Labeling ................................ .••••........... 5:8
Maximum Brice Regulation No. 118 - Cotton Products Applicability .••••• ........................ .............. 5:9
Price Determination ..........................•••••••••••• 5:10
Definitions ........................................... 5:11
Records and Reports.................................. 5:11
Maximum Price Regulation No. 127 - Finished Piece Goods Applicability 5:11
Price Determination •••••••................................5:14
Premiums............................................. 5:17
Classification . ........................................ 5:17
Violations and Evasions ......... ........................ 5:17
Definitions ... ................................ .......... 5:17
Records and Reports.................................... 5:17
▼:a
COTTON AND SYNTHETIC TEXTILE PRODUCTS, Continued
Price Schedule or Regulation page
Maximum Price Regulation No. 128 - Processing Piece Goods Applicability.................................................... . 5 »18
Price Determination ................................................. 5:18
Definitions..........................•............................... 5:18
Records and Reports................................................. 5:18
Maximum Price Regulation No. 211 - Cotton Ginning Services Applicability....................................................... 5:19
Price Determination ..................................................*5:19
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Price Schedule or Regulation Page
EXPORT-IMPORT
Maximum Export Price Regulation Applicability .................................................. 6:1
Price Determination ............................................... 6:1
Premiums ... ........................................................ 6:2
Definitions........................................................• 6:3
▼i:a
Price Schedale or Regulation Page
CEREALS, FEEDS AND AGRICULTURAL CHEMICALS
Price Schedule No. 73 - Fish Meal Applicability • .................................................... 7:1
Price Determimt ion-Commissions ...................................... 7:1
Maximum Price Regulation No. 74 - Animal Product Feedingstuffs Applicability................................................... .•••••• 7:1
Maximum Price Regulation No. 135 - Mixed Fertiliser, Superphosphate and Potash
Applicability .............................•••••••••....................7:1
Maximum Price Regulation No. 144 - Retail Prices of Agricultural Insecticides and Fungicides
Applicability ....................................................... 7:1
Price Determination.................................................... 7:2
Maximum Prioe Regulation No. 150 - Finished Rice and Rice Milling By-Products
Definitions .................................................. ...•• 7:2
Maximum Prioe Regulation No. ITS - Wheat Mill Feeds Applicability •••••••••.............................................. • 7:2
Maximum Price Regulation No. 296 - Flour From Wheat, Semolina And Farina Sold By Millers And Blinders
Applicability •••••••••••• .......................... ... ............ 7:2
Prioe Determination................................................... 7:2
Maximum Price Regulation No. 305 - Corn Meal, Corn Flour, Corn Grits, Hominy Grits, Brewers Grits And Other Products Made By A Dry Milling Process
Applicability......................................................... 7:3
Maximum Price Regulation No. 315 - Arsenical Price Determination...............••••••............................. • 7:3
Maximum Prioe Regulation No. 319 - Certain Bakery Products Applicability • .................................................. 7:3
Maximum Price Regulation No. 346 - Corn Price Determination ..........................••.•••••••••• 7:3
Maximum Prioe Regulation No. 386 - Agricultural Liming Materials Applicability ..............................................«.......7:3
Maximum Price Regulation No. 397 - Flaxseed Price Determination............................................... 7:4
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Price Schedule or Regulation Page
DISTRIBUTION
General Order No, 51 • Authorisation to Regional Office and to such Offices as may be Authorised by Regional Officers to Fix Community (Dollar-and-Cents) Ceiling Brices,
Applicability . •....................................................8:1
Price Determination.......................................... . . 8:1
Maximum Price Regulation No. 421 - Ceiling Prices of Certain Foods Sold at Wholesale,
Applicability....................................................... 8:1
Price Determination................................................. 8:3
Definitions ............................................... ....... 8:5
Maximum Price Regulation No, 422 - Ceiling Prices of Certain Foods Sold at Retail in Group 3 and 4 Stores.
Applicability • .................................................. 8:6
Price Determination ............................................. 8:6
Definitions ......................... ....... ................... 8:6
Maximum Price Regulation No, 423 - Ceiling Prices of Certain Foods Sold at Retail in Independent Stores Doing an Annual Business of Less Than $250,000 (Group 1 and Group 2 Stores),
Applicability • ................................................. 8:7
Price Determination ............................................. 8:7
Definitions • ••••............................................... 8:7
▼iii:a
FRUITS AND VEGETABLES
Price Schedule or Regulation
Page
Maximum Price Regulation No. 152 - Canned Vegetables. Applicability ........................................... 9:1
Brice Determination ...................................... • 9:1
Definitions....................................................9:2
Records and Reports.................• •••••••................ 9:2
Maximum Price Regulation No. 181 - New Formula Condensed Soups Packed Under WPB Conservation Order M-81. Price Determination ................ ............... 9:2
Maximum Price Regulation No. 185 - Canned Fruits and Canned Berries. Applicability........................................ • . • • • 9:5
Price Determination.......................................... 9:5
Definitions ................................................ 9:5
Maximum Price Regulation No. 207 - Frozen Fruits, Berries and Vegetables.
Price Determination.................................••••.................9:5
Definitions ........................................................... 9:4
Maximum Price Regulation No. 255 - Permitted Increases for Wholesalers of Certain Foods. Applicability ......................................................... 9:4
Price Determination................................................. 9:4
Maximum Price Regulation No. 256 - Permitted Increases for Retailers of Certain Foods. Price Determination •••••............................................ 9:4
Maximum Price Regulation No. 262 - Seasonal and Miscellaneous Food Commodities. Applicability ••«•••••• ..................... ••«.••••••••• 9:5
Price Determination .................................................. 9:5
Maximum Price Regulation No. 270 - Dry Edible Beans and Certain Other Dry Food Commodities. Classification .... ......................... • •••••.•••••• 9:5
Maximum Price Regulation No. 271 - Potatoes and Onions. Applicability .................................................. 9:5
Definitions • ........... 9:6
Maximum Price Regulation No. 285 • Imported Fresh Bananas, Sales Except at Retail. Applicability . • ♦ ...............«......................... 9:6
Price Determination . ..•••••••••••.............................. 9:6
Violations and Evasions ........ • •••••• 9:6
Maximum Price Regulation No. 506 • Certain Packed Food Products. Price Determination .. ......... • • • 9:7
Violations and Evasions •••••.••• .............................. ....... 9:7
Definitions .......... •••••• 9:7
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Page
FRUITS AND VEGETABLES, Continued
Price Schedule or Regulation
Maximum Price Regulation No. 409 - Frozen Fruits, Berries and Vegetables (1945 Pack and After). Price Determination...................................................... 9:7
Violations and Evasions.................................................. 9:7
Definitions.................'.......................................... 9:7
Maximum Price Regulation No. 425 - Fresh Fruits, Berries and Vegetables For Processing.
Applicability........................................................ . . 9:7
Price Determination ................................................... 9:8
Violations and Evasions ............................................... 9:8
Maximum Price Regulations No. 426 - Fresh Fruits and Vegetables for Table Use, sales Except at Retail. Applicability •••••••••• ................................................. 9:8
Price Determination •••••................................................ 9:8
Violations and Evasions ................................................. 9:8
Maximum Price Regulation No. 427 - Processed Beans, Macaroni Products and Noodle Products.
Applicability............................................................ 9:9
Maximum Price Regulation No. 475 - Dried Fruits, 1943 and Later Crops. Applicability .................................................. 9:9
Maximum Price Regulation No. 488 - Pickles and Certain Pickled Products. Definitions ....................................................... 9:9
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GROCERY PRODUCTS
Price Schedule or Regulation Page
Price Schedule Ko. 16 - Raw Cane Sugars. Applicability................................................... 10:1
Price Determination ................................................... 10:1
Price Schedule No. 50 - Green Coffee.
Applicability ...........................................*.............. 10:1
Price Determination..................................................... 10:1
Definitions . . . . ................................................... 10:2
Price Schedule No. 51 - Cocoa Beans And Cocoa Butter.
Applicability........................................................ 10:2
Price Determination.................................................... 10:2
Records and Reports.................................................. 10:3
Price Schedule No. 52 - Pepper. Applicability................................................. 10:3
Price Determination................................................... 10:3
Price Schedule No. 60 — Direct Consumption Sugar.
Applicability........................................................... 10:3
Price Determination................................................. 10:4
Records and Reports ................................................... 10:4
Price Schedule No. 62 - Cigarettes.
Applicability .................... , , 10:4
Price Determination ................................................... 10:4
Price Schedule No. 91 - Tea.
Applicability........................................................... 10:4
Price Determination.................................................... 10:5
Maximum Price Regulation No. 154 - Ice.
Price Determination.................................................... 10:5
Violations and Evasions 10:5
Maximum Price Regulation No. 193 - Domestic Distilled Spirits.
Applicability........................................................... 10:6
Price Determination..................................................... 10:6
Taxes................................................................. 10:7
Violations and Evasions............................................. . 10:8
Maximum Price Regulation No. 231 - Raw Spices and Spice Seeds.
Applicability ......................................................... 10:8
Price Determination................................................. 10:8
Maximum Price Regulation No. 259 - Domestic Malt Beverages.
Applicability............................. ........................... 10:9
Price Determination..................................................... 10:9
Maximum Price Regulation No. 260 - Cigars.
Price Determination 10:9
600780 0 - 44 -2
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GROCERY PRODUCTS, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. 275 - Extracted Honey. Applicability • • • . •................................ 10:10
Price Determination .........................................10:10
Classification ....................................................... 10:10
Maximum Price Regulation No. 279 - Hops. Price Détermination-Commissions ....................................10:11
Violations and Evasions............................• • • ............. 10:11
Definitions......................................................... 10:11
Maximum Brice Regulation No. 283 - Burley (Type No. 31) Tobacco. Price Determination.............................................10:11
Maximum Price Regulation No. 335 - Peanuts and Peanut Butter. Applicability................................................. 10:11
Price Determination........................................•••••• 10:11
Definitions......................................................... 10:12
Maximum Price Regulation No. 445 - Distilled Spirits and Wines. Records and Reports ••••...................................... 10:12
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MEATS, FISH, FATS, AND OIL
Price Schedule or Regulation Page
Maximum Price Regulation No. 53 - Fats and Oils Applicability.............................'........ 11:1
Price Determination............................. 11:2
Violations and Evasions ................ ......... 11:3
Maximum Price Regulation No. 148 - Dressed Hogs and Wholesale
Pork Cuts Applicability . ...................... ........... 11:4
Price Determination ••••••••• ............. ...... 11:4
Transportation Charges •••.••.. ... •••••• 11:5
Classification ••••• ••••• ................ •••••• 11:5
Violations and Evasions....................... 11:5
Definitions ••• .................... ••••••...•.•• 11:6
Maximum Price Regulation No. 169 - Beef and Veal Carcasses and
Wholesale Cuts Applicability...................................... 11:7
Price Determination • .•••••••••••••••••• 11:7
Violations and Evasions • ••••••••••* .......... • 11:11
Definitions......................................... 11:12
Records and Reports • • . • ....................... 11:12
Maximum Price Regulation No. 239 - Lamb and Mutton Carcasses and Cuts at Wholesale and Retail
Applicability •••••*••• • ....••...••••• 11:12
Price Determination •••••............. •••••••••• 11:13
Definitions ••••••••••••••••• ................... 11:13
Maximum Pride Regulation No. 336 - Retail Ceiling Prices for Pork Cuts and Processed Meat Products
Applicability •••••• ...................... ••••• 11:13
Price Determination •••••••••••• .............. • 11:13
Classification • 11:13
Violations and Evasions ........... ••••••••••••• 11:13
Maximum Price Regulation No. 355 - Retail Ceiling Prices for Beef, Lamb, Veal and Mutton Cuts andall Variety Meats and Edible By-products
Applicability ..........• • •.................... 11:14
Price Determination ... ..... • ••••••••••• 11:14
Violations and Evasions ..... ................. • 11:14
Maximum Price Regulation No. 364 - Frozen Fish and Seafood
Applicability . ..... • •••.•••••••••••• 11:14
Price Determination ... ................ •••••••• 11:14
Classification •••••• ................. ••••••••• 11:15
Definitions .•••.•••••• ................ •••••••• 11:15
Maximum Price Regulation No. 367 - Horsemeat Applicability .............. •••••• .............. 11:15
Definitions.................................. 11:15
Maximum Price Regulation No. 389 - Ceiling Prices for Certain Sausage Items at Wholesale
Applicability •••••• .................. ••••••••• 11:15
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MEATS, FISH, FATS, AND OIL, Continued
Price Schedule or Regulation
Page
Maximum Price Regulation No. 389, continued.
Price Determination.......................................... 11:15
Definitions.................................................. 11:16
Labeling.......................................................11:16
Maximum Price Regulation No. 398 - Variety Meats and Edible By-products at Wholesale
Definitions ............. •••••• .................. 11:16
Maximum Price Regulation No. 418 - Fresh Fish and Seafood Applicability •••••••••••••••• ................... • 11:17
Price Determination........................ ....... 11:17
Definitions .. ............................ . . • . . 11:17
Maximum Price Regulation No, 469 - Live Hogs Violations and Evasions ....................... . . • 11:17
Definitions................................... 11:18
xi:b
POULTRY, EGGS AND DAIRY PRODUCTS
Price Schedule or Regulation Page
Maximum Price Regulation No. 269 - Poultry. Applicability ....................................................... 12«1
Price Determination.................................................... 12:1
Classification......................................................... 12:2
Violations and Evasions ............................................... 12:2
Definitions..............................................................12:2
Records and Reports 12:3
Maximum Price Regulation No. 289 - Dairy Products. Applicability ... .............................................. ..... 12:3
Price Determination ................................................... 12:3
Definitions............................................................ 12:4
Records and Reports.................................................. 12:4
Maximum Price Regulation No. 329 - Purchases of Milk from Producers for Resale as Fluid Milk.
Applicability............................................................. 12:4
Violations and Evasions.............................................. 12:4
Maximum Price Regulation No. 333 - Eggs and Egg Products. Price Determination............................................ 12 ;4
Definitions..............................................................12:4
xiita
IRON AND STERL
Price Schedule or Regulation Page
Price Schedule No. 4 - Iron and Steel Scrap. Applicability • 13»1
Price Detemination ...............• •••.••••• 13:1
Comadssions ••••••••••••••••••••••••••• 13:7
Taxes ....•••• .......... • .................. 13:9
Classification • ••••••••••••••••• ........... • 13:9
Violations and Evasions .................... 13:10
Definitions. • ••••••••••••••••••••*••••• 13:10
Records and Reports • 13:11
Licensing • •...•• ........................ •••• 13:11
Price Schedule No. 6 - Iron and Stool Products. Applicability...................................13:11
Price Dotendnation.......• • •................ 13:12
Taxes . . . •........• ••••••••............... 13:13
Violations and Evasions ........ ••••••••••••••• 13:13
Price Schedule No. 10 - Pig Iron Applicability • ••••••••• ................... • 13:14
Price Detemination • 13:14
Taxes •••••• • 13:14
Price Schedule No, 41 - Steel Castings. Applicability « • ... •••••••• ........ • ••••• 13:16
Price Detemination • ••••••*••••••••••••••• 13:15
Violations and Evasions • •••••••••••••.•••••• 13:15
Maximum Price Regulation No. 43 - Used Steel Drums, Pails and Contain-ord, and Reconditioning of Used Stool Druse
Applicability.................................. 13:16
Price Detemination • ........................ 13:17
Violations and Evasions • ••••• .••••• ....... • 13:18
Maximum Price Regulation No. 46 - Relaying Rail, Relaying Girder Rail and Used Track Accessories.
Applicability •••• ...... • •••••••••••••••• 13:18
Price Detemination ••••••••••••••••••••••• 13:18 Taxes •• .... ••••••••••••• .......... ••••• 13:19
Definitions ••••••••• .............. • •••••••• 13:19
Price Schedule No. 49 - Resale of Iron or Steel Products. Applicability ................•••••••••.. 13:19
Price Detemination • •..••.•••••••••••••••• 13:20 Commissions 13:21
Violations and Evasions.............• ••••• 13:21
Definitions • •••••••••••••••••••••••••• 13:22 Records and Reports ••••••••••••••••*•••••• 13:22
Maximum Price Regulation No. 147 - Bolts, Nuts, Screws and Rivets. Applicability ............................ 13:22
xili:a
IRON AND STEEL, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. 159 - Fabricated Concrete Reinforcing Bare.
Applicability...................................... 18:22
Price Determination .•.•••....•••••••••••••• 13:23
Taxes ••.••• ................ .............. ........ • 13:23
Maximus: Brice Regulation No. 214 - High Alley Castings.
Price Determination - Taxes • •••••................ 13:23
Records and Reports • •••••••••••••• ............... 13:24
Maximum Price Regulation No. 230 - Reusable Iron and Steel Pipe and Used Structural Pipe.
Applicability ••••• .................. ............... 13:24
Price Determination............ • • .............. 18:24
Maximum Price Regulation No. 235 - Manganese Steel Castings and Manganese Steel Castings Products.
Price Determination............................ • 13:24
Taxes •••••••• ............... •••••••• ....... .... 13:25
Violations and Evasions • •.•••••••• ............. ... 13:25
Maximum Price Regulation No. 241 • Malleable Iron Castings.
Applicability • 13:25
Price Determination ••••.......••••••.............•••• 13:25
Maximum Price Regulation No. 244 - Gray Iron Castings.
Applicability .••••••••••••• •• • ...................* 13:26
Price Determination .............. 13:26
Records and Reports ............................. 13:2?
Maximum Price Regulation No. 310 - Reusable Structural Stool Shapes and Plates, and Shafting.
Applicability • •.•••••••••••••••••••••••* 18:28
Maximum Price Regulation No. 411 - Reusable Stool Storage Tanks (Field Assembled) •
Price Determiation • •••••..............••••.......18:28
Definitions •••• ......................... ......... 18:28
xiii:b
LEATHER, WOOL AND MISCELLANEOUS FIBER PRODUCTS
Price Schedule or Regulation Page
Price Schedule No. 9 - Hides, Kips and Calfskins. Applicability...................................................14:1
Price Determination...................................................14:1
Commissions ......................................................... 14:2
Classification..............................................................
Definitions......................................................... 14:2
Violations and Evasions...............................................14:2
Price Schedule No. 18 - Burlap. Applicability...................................................14:3
Price Determination...................................................14:3
Premiums............................................................... 14 ;4
Violations and Evasions...............................................14:4
Maximum Price Regulation No. 55 - Second-hand Bags. Applicability ....... ......................................... 14:4
Price Determination................................................. 14:4
Commissions......................................................... 14:6
Premiums............................................................ 14:6
Classification....................................................... 14:7
Violations and Evasions........................................... 14:7
Definitions...........................................................14:7
Records and Reports . ,............................................. 14:7
Price Schedule No. 58 - Wool and Wool Tops and Yarns. Applicability............................................... 14:7
Price Determination • ..................................... 14:8
Commissions •••••....................................................14:10
Premiums •• .........................................................14:11
Classification ................................................ ..... 14:11
Definitions...................................................... 14:11
Price Schedule No. 59 - Kapox. Applicability..................................................14:11
Price Determination - Premiums .................................... 14:11
Price Schedule No. 61 - Leather. Applicability..................................................14:12
Price Determination.............................................. 14:13
Premiums............................................................. 14:13
Definitions....................................................... . 14:13
Records and Reports .................................................14:14
Maximum Price Regulation No. 106 - Domestic Shorn Wool. Price Determination............................................14:14
Commissions........................................................ 14:14
Maximum Price Regulation No. 123 - Raw and Processed Wool Waste Materials.
Applicability ....................................................... 14:14
Price Determination ............................................. 14:15
Premiums ............................................................14:15
Classification.................................................... 14:15
Definitions ....................................................... 14:15
Records and Reports..................................................14:15
xiv:a
LEATHER, WOOL AND MISCELLANEOUS FIBER PRODUCTS, Continued
Page
Price Schedule or Regulation
Maximum Price Regulation No. 141 - Domestic Raw Shearlings and Tanned Shearlings For the Armed
Forces. Applicability ................................................ 14:16
Price Determination-Commissions.......................»..............14:16
Definitions........................................................ 14:17
Maximum Price Regulation No. 145 - Pickled Sheepskins. Price Determination.......................................... 14:17
Maximum Price Regulation No. 151 - New Bags. Applicability .. ..................♦..................14:17
Price Determination .............................................. 14:17
Definitions...................................................... 14:17
Maximum Price Regulation No. 163 - Wool and Worsted Civilian Apparel Fabrics. Applicability...................................................... 14:18
Price Determination................................................ 14:18
Premiums .......................................................... 14:21
Classification.......................................................14:21
Definitions...................................................... 14:21
Records and Reports................................................. 14:22
Maximum Price Regulation No. 340 - Jute and Istle Yarn, Rove and Rope. Price Determination................................................ 14:22
, xiv:b
LUMBER
Price Schedule or Regulation Page
Interpretations of General Applicability. Price Determination........................................... 15:1
Commissions............................................................
Premiums........................................ • •...............15:1
Taxes ...•••...................................................... 15:1
Violations and Evasions........................................... 15:3
Special Annotation. Shipments Originating at Mill Rather Than at Distribution Yard • • «15:3
Maximum Price Regulation No. 13 - Douglas Fir Plywood.
Applicability ...••••••• ................................. .••••••••15:4
Price Determination............................................... 15:4
Commissions •••...........................•••.......................15:5
Violations and Evasions •••••••••• .................... • ......... 15:5
Definitions ................... • ............................ •••••15:5
Records and Reports............•••................................ 15:5
Maximum Brice Regulation No. 19 - Southern Pine Lumber. Applicability .............................................. 15:5
Price Determination............................................... 15:5
Premiums ••••••••• ................................. ......... 15:8
Transportation Charges................................ •...........15:8
Classification....................................•.................15:8
Violations and Evasions •••••...................................... 15:8
Definitions •••........................................................
Records and Reports • ..............................................15:9
Maximum Price Regulation No. 26 - Douglas Fir and Other West Coast Lumber.
Applicability .................................... ............... 15:9
Price Determination .............................................. 15:9
Transportation Charges..................................... ••••• 15:11
Violations and Evasions...................................... • 15:12
Definitions...................................................... 15:12
Records and Reports ••••••.........................................15:12
Price Schedule No. 44 - Douglas Fir Doors. Applicability ••••...................................... 15:12
Price Determination.............................................. 15:12
Maximum Price Regulation No. 94 - Western Pine And Associated Species of Lumber.
Applicability.................................................. 15:13
Price Determination ..............................................15:13
Premiums...................................... •••••••••..........16:14
Commissions ............................ .......... ............. 15:14
Transportation Charges • ••••• ................................... 15:14
Violations and Evasions .................... • ......... ••••• 15:14
Definitions •••••••.............................................. 15:15
xv :a
LUMBER, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. 97 - Southern Hardwood Lumber. Applicability................................................. 15:15
Price Determination ........................................... 15:15
Definitions . . . . •.......................................... 15:16
Maximum Price Regulation No. 109 - Aircraft Lumber. Applicability................................................. 15:16
Maximum Price Regulation No. 117 - Used Egg Cases and Used Component Parts. Applicability ................................................... 15:16
Price Determination-Transportation Charges....................... 15:16
Labeling.......................................................... 15:16
Violations and Evasions .............. ...................... ... 15:17
Maximum Brice Regulation No. 146 - Appalachian Hardwood Lumber. Price Determination ................................... ......... 15:17
Maximum Price Regulation No. 155 - Central Hardwood Lumber. Applicability..............•••••••••............................. 15:17
Brice Determination ........... • 15:17
Maximum Price Regulation No. 161 - West Coast Logs. Applicability ............ • •••••••.•••••••...................... 15:17
Price Determination...................................... ...... 15:17
Maximum Price Regulation No. 164 - Red Cedar Shingles. Applicability..................................................... 15:18
Records and Reports .................................... ........ 15:18
Maximum Price Regulation No. 186 - Western Wood Agricultural Containers. Applicability................................................. 15:18
Price Determination............................................ 15:19
Maximum Price Regulation No. 195 - Industrial Wooden Boxes. Applicability ...... ............................................. 15:19
Price Determination.............................................. 15:19
Taxes........................................................... 15:20
Maximum Price Regulation No. 196 - Turned or Shaped Wood Products. Applicability.................................................... 15:20
Maximum Price Regulation No. 215 - Distribution Yard Sales of Softwood. Applicability................................................. 15:21
Price Determination.............................................. 15:21
Transportation Charges.......................................... 15:22
Definitions •••••................................................. 15:22
Classification • ............................................... 15:22
Maximum Price Regulation No. 216 - Eastern Primary Forest Products. Applicability..................................................... 15:22
Price Determination..................................••••......... 15:22
Classification ............................................... 15:23
xv:b
LUMBER, Continued
Price Sohedale or Regulation Page
Maximum Price Regulation No. 222 - Northern Softwood Lumber.
Applicability..................................................... . . 15,23
Price Determination................................................... 15:23
Violations and Evasions ............................................... 15:23
Maximum Price Regulation No. 253 - Redwood Lumber and Millwork.
Price Determination.....................................................15:23
Maximum Price Regulation No. 284 - Western Primary Forest Products.
Price Determination-Transportation Charges .......................... 15:24
Maximum Price Regulation No. 293 - Stock Mill work. Applicability.................................................... . 15:24
Maximum Price Regulation No. 320 - Eastern And Central Wooden Agricultural Containers.
Price Determination ...................................................15:24
Maximum Price Regulation No. 324 - Eastern Fence Posts .
Applicability .........................................................15:26
Price Determination.....................................................15:25
Maximum Price Regulation No. 338 - Aircraft And No. 1 Sheet Stock Veneer.
Applicability................................................... ••••• 15:25
Classification...................*......................................15:25
Maximum Price Regulation No. 348 - Logs and Bolts. Applicability ......................................................... 15:25
Price Determination................................................... 15:25
Maximum Price Regulation No. 381 - Stock Screen Goods. Applicability.......................................................... 15:26
Price Determination ....................................................15:26
Maximum Price Regulation No. 402 - Western Red Cedar Lumber. Price Determination.....................................................15:26
Maximum Price Regulation No. 424 - Tight Cooperage Stock And Sawed Tight Cooperage.
Applicability.......................................................... 15:26
Maximum Price Regulation No. 432 - Northern Hardwood Flooring.
Price Determination................................................. 15:27
Maximum Price Regulation No. 458 - Oak, Paean And Miscellaneous Hardwood Flooring.
Price Determination .................................................. 15:27
Maximum Price Regulation No. 491 - Pressure Preservative Treatment of Forest Products and Pressure Treated Forest Products.
Applicability ......................................................... 15:27
Maximum Price Regulation No. 501 - Hardwood Small Dimension. Applicability......................................................... 15:27
xv:o
MACHINERY
Pr|oe Schedule or Regulation Page
General Applicability ................................................. 16:1
Maximum Price Regulation No. 1 - Second-hand Machine Tools. Applicability ....................................................... 16:2
Price Determination........................................... 16:2
Commissions.....................................................16:3
Classification................................................. 16:3
Violations and Evasions ................................. ..... 16:4
Definitions................................................... 16:4
Records and Reports.............................................16:4
Price Schedule No. 67 - New Machine Tools. Applicability........................................................ 16:5
Price Determination......................................... 16:5
Definitions................................................... 16:6
Records and Reports.............................................16:6
Price Schedule No. 82 - Wire, Cable and Cable Accessories. Applicability....................................................... 16:6
Price Determination........................................... 16:7
Records and Reports........................................... 16:7
Price Schedule No. 85 - New Passenger Automobiles. Applicability....................................................... 16:7
Price Determination.............................................16:8
Taxes...........................................................16:9
Maximum Price Regulation No. 133 - Retail Prices for Farm Equipment. Applicability................................................ 16:9
Price Determination........................................... 16:10
Violations and Evasions........................................16:10
Definitions ........i ........................................ 16:11
Records and Reports . ....................................... 16:11
Maximum Price Regulation No. 134 - Construction and Road Maintenance Equipment Rental Prices and Charges for Operating and Maintenance or Repair and Rebuilding Services.
Applicability...................................... 16:11
Price Determination................................... 16:11
Taxes .......................... ......... .......... 16:14(a)
Classification.................................... 16:14(a)
Violations and Evasions ........................... 16:14(a)
Maximum Price Regulation No, 136 - Machines and Parts, and Machinery Service.
Applicability.............................................. 16:15
Price Determination.................................... • • 16:23
Taxes ........................................................ 16:26
Classification ............................................. 16:26
Violations and Evasions ... ...................... .......... 16:27
Definitions........................................... . • 16:27
xvi ta
MACHINERY, Continued
Page
Price Schedule or Regulation
Maximum Price Regulation No. 246 - Manufacturers' and Wholesale Prices for Farm Equipment.
Applicability.......................................................... 16:28
Price Determination.....................................................16:28
Maximum Price Regulation No. 341 - Maximum Prices for Used Commercial Motor Vehicles.
Applicability ..... ................................................... 16:28
Classification........................................................ 16:28
Definitions........................................................... 16:29
Maximum Price Regulation No. 375 - Sales of Used Industrial Sewing Machines and Rental Rates for New and Used Industrial Sewing Machines
Applicability......................................................... 16:29
xvijb
NON-FERROUS METALS
Prioe Schedule or Regulation \ Page
Price Schedule No. 2 - Aluminum Scrap and Secondary Aluminum Ingot. Applicability................................................... 17:1
Price Determination...................................................... 17:1
Premiums................................................................. 17:1
Taxes.................................................................. 17:1
Classification .............................................. .......... 17:1
Violations and Evasions.................................................. 17:1
Maximum Price Regulation No. 3 - Zino Scrap Materials and Secondary Slab Zinc. Applioability........................................................ 17:1
Price Determination...................................................... 17:2
Definitions............................................................ 17:2
Price Schedule No. 8 - Pure Nickel Scrap, Monel Metal Scrap, Stainless Steel Scrap, Nickel Steel Scrap, and Other Scrap materials containing Nickel: Secondary Monel Ingot, Secondary Monel Shot, and Secondary Copper-Nickel Shot.
Applicability ................................................ ....... 17:2
Price Determination .................................................. 17:3
Premiums............................................................. 17:3
Price Schedule No. 12 - Brass Mill Scrap. Applicability ....................................................... 17:3
Price Determination..................................................... 17:3
Premiums................................................................. 17:4
Violations and Evasions .,,,........................................... 17:5
Prioe Schedule No. 15 - Copper. Applicability ...................................................... 17:5
Price Determination...................................................... 17:5
Commissions............................................................. 17:5
Prioe Schedule No. 17 - Pig Tin. Price Determination ..............................................z. 17:6
Violations and Evasions................................................ 17:6
Maximum Price Regulation No. 20 - Copper Scrap and Copper Scrap Alloy. Applicability................................................. 17:6
Price Determination................................................... 17:6
Premiums............................................................... 17:7
Classifications ...................... . ....................... ....... 17:7
Definitions.............................................................. 17:7
Violations and Evasions ...... .......................................... 17:7
Prioe Schedule No. 69 - Primary Lead. Applioability............................................ ......... 17:7
Prioe Determination .................................................... 17:8
Premiums................................................................. 17:8
xvii:a
NON-FERROUS METALS, Continued
Price Schedule or Regulation Page
Maximum Price Regulation Iio. 70 - Lead Scrap Materials; Secondary Lead; Battery Lead Scrap; and Primary and Secondary Antimonial
Lead. Applicability................................................. 17*8
Price Determination ..... .................. ........... 17:9
Commissions........................................................ 17:9
Violations and Evasions............................................ 17:10
Definitions.........................................................17:10
Price Schedule No. 81 - Primary Slab Zinc. Price Determination-Taxes •••••............................. 17:10
Classifications .................................................... 17:10
Maximum Price Regulation No. 125 - Non-Ferrous Castings. Price Determination .........................................17:10
Maximum Price Regulation No. 126 - Fluorspar. Price Determination .........................................17:11
Maximum Price Regulation No. 198 - Imports of Silver Bullion. Applicability............................................... 17:11
Maximum Price Regulation No. 258 - Chrome Ores. Violations and Evasions ................................... 17:11
xvii:b
PAPER AND PAPER PRODUCTS
Price Schedule or Regulation Page
Maximum Price Regulation No. 30 - Wastepeper Applicability ........................................... 18:1
Price Determination . ............................ .............18:2
Classification ................................................ 18.3
Violations and Evasions........................................ 18:4
Definitions.................................................... 18:4
Records and Reports .............................................18:4
Price Schedule No. 32 - Paperboard Sold East of the Rooky Mountains Applicability............................................ 18:4
Price Determination............................................ 18:5
Classification • 18:6
Records and Reports ........................................... 18:6
Maximum Price Regulation No. 47 - Waste Rages, Waste Ropes, and Waste Strings
Applicability................................................ 18:6
Price Determination......................................... . 18:6
Definitions.................................................... 18:7
Maximum Price Regulation No. 114 - Woodpulp Applicability .............................................. •••• 18:7
Price Determination.......................................... 18:7
Maximum Price Regulation No. 129 • Miscellaneous Paper Products Applicability ••••................................................ 18:7
Price Determination............................................ 18:8
Maximum Price Regulation No. 130 - Standard Newsprint Paper Applicability .......................................... ..... 18:8
Price Determination..............................................18:8
Definitions ................................ .................... 18:9
Records and Reports ........................... ••••............18:9
Maximum Price Regulation No. 140 - Sanitary Napkins Price Determination ••.•••••••••••.•• ...................... 18:9
Maximum Price Regulation No. 182 - Kraft Wrapping Pipers and Certain Bag Papers and Certain Bags
Applicability .................................................. 18:9
Violations and Evasions .. ................ 18:10
Maximum Price Regulation No. 187 • Certain Paperboard Products
Applicability ..................... ••••••••• .............. ••••• 18:10
Price Determination ••••••.••• ................................... •••• 18:11
Maximum Price Regulation No. 225 - Printing and Printed Paper Commodities Applicability .................................................. 18:11
Price Determination ............... ... 18:13
Records and Reports .................................................. 18:14
Violations and Evasions ...................... 18:14
600780 0 - 44 -3
xviii:a
PAPER AND PAPER PRODUCTS, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. 257 - Pulpwood Produced in or Sold into the States of Minnesota, Michigan, and Wisconsin
Applicability ...................................................... 18:14
Commissions..................................................... ... 18:15
Violations and Evasions *............................. . ,..........18:15
Maximum Price Regulation No. 266 - Certain Tissue Paper Products Price Determination ...............................'•...*.........18:15
Maximum Price Regulation No. 307 - Waxed Paper Price Determination . .......................................... 18:15
Maximum Price Regulation No. 344 - New Cotton, Linen and Underwear Cuttings
Applicability ....................................................... 18:16
Maximum Price Regulation No. 349 - Distributors1 Maximum Prices for
Certain Coarse Paper Products Applicability.....................................................18:16
Price Determination................................................. 18:16
Definitions .................................................. ...... 18:16
Maximum Price Regulation No. 361 - Pulpwood Produced in or Sold into the States of Maine, Vermont, New Hampshire and New York
Price Determination ..................................... ...... 18:16
Maximum Price Regulation No. 365 - Wood Matches and Resale Book
* Matches
Applicability ................. ............ ........................ 18:17
Classification...................................................... 18:17
Maximum Price Regulation No. 369 - Dry Roofing Felt Applicability................................................... . 18:17
Maximum Price Regulation No. 387 - Pulpwood Produced in the States of South Carolina, Georgia, Florae^ Tennessee, Mississippi, Alabama and Louisiana East of the Mississippi River
Price Determination ............................................... 18:17
Taxes............................................................... 18:18
Maximum Price Regulation No. 449 - Groundwood Specialty Papers Applicability ............................. ............. 18:18
Maximum Price Regulation No. 459 - Gummed Kraft Sealing Tape Applicability .................................................. 18:18
Maximum Price Regulation No. 484 - Unwashed and Washed Wiping Cloths Applicability .................................................. 18:18
Price Determination . ................................................18:19
xviii:b
PETROLEUM AND PETROLEUM PRODUCTS
Price Schedule or Regulation Page
Price Schedule No. 42 - Paraffin Wax.
Price Determination..................................................19:1
Maximum Price Regulation No. 88 - Fuel Oil, Gasoline, And Liquefied Petroleum Gas.
Applicability........................................................19:1
Price Determination..................................................19:3
Commissions..........................................................19:7
Classification..................................................... 19:7
Violations and Evasions............................................ 19:7
Definitions................................................... , , 19:7
Records and Reports................................................ 19:7
Maximum Price Regulation No. 137 - Petroleum Products Sold At Retail Establishments.
Applicability ....... .............................................. 19:7
Price Determination.............................................. 19:8
Classification..................................................... 19:9
Violations and Evasions ........................................... 19:9
Records and Reports................................................ 19:9
Maximum Price Regulation No. 323 - Asphalt and Asphalt Products. Applicability.................................................. 19:9
Price Determination .................................................19:9
Maximum Price Regulation No. 436 - Crude Petroleum, And Petroleum And Natural Gas.
Applicability . . .^.................................................19:9
Price Determination.................................................19:10
Maximum Price Regulation No. 510 - Lubricating Oils, Greases, And Certain Other Petroleum Products.
Applicability .....’............................................. . 19:11
Price Determination............................................... 19:11
xix:a
RUBBER
Price Schedule or Regulation Page
Price Schedule No. 56 - Reclaimed Rubber. Applicability................................................ 20:1
Records and Reports.............................................. 20:1
Price Schedule No. 87 - Scrap Rubber. Applicability..................................................20:1
Price Determination.............................................. 20:1
Maximum Price Regulation No. 119 - Original Equipment, Tires And Tubes.
Applicability......................................................20:2
Maximum Price Regulation No. 131 - Camelback and Tire And Tube Repair Materials.
Price Determination.............................................. 20:2
Records and Reports............................................ 20:2
Maximum Price Regulation No. 143 - Wholesale Prices For New Rubber Tires and Tubes.
Applicability.................................................... 20:2
Maximum Price Regulation No. 149 - Mechanical Rubber Goods. Applicability..................................................20:3
Price Determination........................................ *. . 20:3
Definitions........................................................20:3
Records and Reports................................................20:4
Maximum Price Regulation No. 200 - Rubber Heels, Rubber Heels Attached, and Attaching of Rubber Heels.
Applicability.................................................... 20:4
Price Determination............................................... 20:4
Maximum Price Regulation No. 220 - Certain Rubber Commodities. Applicability .................................................20:4
Price Determination ...............................................20:4
Taxes..............................................................20:5
Maximum Price Regulation No. 300 - Maximum Manufacturers* Prices For Rubber Drug Sundries.
Applicability • ...................................................20:5
Price Determination................................................20:5
Taxes .................. ......... 20:5
Definitions • . . .................................................20:5
Maximum Price Regulation No. 301 - Retail And Wholesale Prices for Rubber Drug Sundries.
Applicability..................................................... 20:6
Marking and Posting . , ,........................................ 20:6
Maximum Price Regulation No. 403 - Certain Rubber Commodities Purchased for Governmental Use.
Applicability......................................................20:6
xx :a
RUBBER, Continued
Price Schedule or Regulation Page
Maximum Price Regulation No. 435 - New Bicycle Tires and Tubes.
Price Determination............................................... 20:6
Maximum Price Regulation No. 477 - Sales of Rubber Heels and Soles in the Shoe Factory and Home Re** placement Trade.
Applicability • • • • •................• ••••••••••.•• 20:6
Maximum Price Regulation No. 528 - Tires And Tubes, Recapping And Repairing.
Applicability ............................................. ••••••• 20:7
Price Determination................................................ 20:7
Taxes ........................................................... 20:8
Classification...................................................... 20:8
Violations and Evasions • ....................................... 20:8
xx :b
Price Schedule or Regulation Page
SOLID FUELS
Interpretations of General Applicability .......• • • • 21:1
Compensatory Adjustment Regulation No. 1 - Wartime Increases in the
Cost of Transporting Bituminous Coal.
Eligibility for Compensation ........................ 21:1
Bituminous Coal Delivered from Mine or Preparation Plant ••••••• 21:2
Adjustable Pricing Agreements • •.••••••••••••••• 21:2
Applicability..................................... 21:2
Classifications and Site Groups...................... 21:4
Computation of Maximum Prices ••••*................... 21:4
Effect on Contracts •••••• .............••• ......... • 21:6
Crushed Coal ••••••• • •••••• ..................... ... 21:6
Distributors •••••••• ...................... •••••••• 21:6
Export Coal •• ..................... ••••••••••••••• 21:7
Interest •• ••••••• .................... ••••••••••• 21:8
Mixed Coals ••••••••••••• ............................. 21:8
Protests - Procedural Regulation No. 1 • ...... ••••••• 21:8
Rail Shipments ••••• .......... . ....... •••••••• 21:8
Railroad Fuel ........................................ 21:9
Reports................................ . . ......... 21:9
Retail Transaction • ••••.•••••••«• .................. 21:10
Sales Agency • ...................................... 21:11
Smithing Coal • ••••••••••••••••••••••••• 21:12
Special Services ••.••••••• ............ • ...... ... 21:15
Taxes ••••••••••••................................. 21:15
Trade Discounts ••••............................... 21:16
Transportation Costs 21:16
Maximum Price Regulation No. 120 - Bituminous Coal Delivered from mine or Preparation Plant.
Applicability...........• ••••••.......................21:18
Price Determination.................................. 21:18
Maximum Price Regulation No. 121 - Miscellaneous Solid Fuels Delivered from Producing Facilities.
Applicability .............••••..................... * • 21:18
Price Determination •••••............................ 21:19
Maximum Price Regulation No. 122 - Solid Fuels Sold and Delivered
By Dealers.
Applicability •••••••••••• ........................... 21:20
Price Determination •••••.............................21:20
Taxes .............................................. 21:24
Definitions ......................................... 21:24
Records and Reports •• ................ ••••••••••••••• 21:25
xxi:a
REGULATIONS OF GENERAL APPLICABILITY
Price Schedule or Regulation Page
Maximum Price Regulation No. 188 - Manufacturers' Maximum Prices
For Specified Building Materials And Consumers' Goods other than Apparel.
Applicability ................................................22:1
Price Determination....................................... 22:3
Classification ............ ................................. 22:4
Definitions................................................. 22:4
Maximum Price Regulation No. 204 - Special Sales of Industrial Materials•
Applicability ............................................... 22:6
Brice Determination......................................... 22:6
Maximum Price Regulation No. 210 - Retail and Wholesale Prices
For Fall And Winter Seasonal Commodities.
Applicability............................................... 22:8
Price Determination ...................................... 22:9
Transportation............................................... 22:11
Definitions...................................................22:11
Records and Reports ...... ................................... 22:12
xxii:a
APPAREL
Maximum Price Regulation No, 95
WOMEN'S NYLON HOSIERY
Applicability
Nylon anklets. An anklet made of nylon yarn is not subject to the Regulation, since the Regulation covers only "nylon hosiery" which is defined in Section 1401,11 as "full length hosiery, in which (i) the leg or (ii) the leg and some portion of the stocking in addition to the leg, is made in whole or in part of nylon yarn;" the General Maximum Price Regulation applies.
Sales through house-to-house canvassers. A Company selling nylon hose through ,house-to-house canvassers is held to be a retailer, rather than a wholesaler, under the Regulation upon a showing of the following facts:
The Company employs two persons on salary, and has contracts with sixteen other persons who are "independent contractors," The work of such persons consists of traveling about in their respective territories making sales of the Company’s sample outfits to people whom they interest in becoming the Company's "agents" or "dealers." By uniform written contract with each of these independent contractors, the Company agrees to pay to them 10% on all net orders received through sales made by agents in their respective territories. The contract provides further that the independent contractors may sell the sample outfits to agents or dealers at such price as they see fit, although the Company retains the right to change the price of the sample outfits to the independent contractors. They sell these sample outfits to prospective agents or dealers upon an agreement that the Company will refund to such agents or dealers the entire purchase price of such sample outfits if the agents sell $300.00 in merchandise during a period of one year«
The sample outfit purchased by each agent or dealer includes a catalogue of the Company's merchandise containing suggested retail prices. The price of merchandise delivered to agents is this retail price less 25%, which represents the agent's commission. An agent is at liberty to sell the goods at any price he sees fit. Thus he may sell at less than the list price, taking the reduction out of his commission or he may sell at a price in excess of the suggested list price thus increasing his commission. The latter, however, in actual practice does not occur, the only variation being a downward revision of the list prices, so that all sales to the consumer are made either at the Company's suggested retail price or less.
The agent or dealer approaches the consumer by house-to-house solicitation, exhibits the merchandise by means of these sample outfits, takes a specific order and mails that order in to the Company upon blanks the Company provides, giving the number of the product from the catalogue, the customer's name and the list price of each product. Upon receipt of this order the Company prepares it individually for this customer and mails it back to the agent, by parcel post, postage prepaid. In this transaction the Company makes an actual sale of the merchandise to the agent. However, the Company has establ ished a credit system with its agents by which they receive the goods on credit, take them to the consumer, exhibit them, complete the sale, collect the purchase price, and mail to the Company its price. The normal credit period is 10 days to the various agents; however, in the case of those agents who have established good credit with the Company through long association, the credit terms are more liberal, depending upon the facts of each particular case. At least 80% of the agents or dealers do business on the more liberal credit basis.
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The agent or dealer exhibits the merchandise to the consumer before payment is received.
If the consumer refuses to take the merchandise exhibited to him, the Company accepts the goods back in lieu of the purchase price thereof.
Periodically, the Company mails to its agents or dealers selling suggestions, instructions and other data to increase their effectiveness. Occasionally, it offers them premiums if they are able to attain certain selling goals.
These agents or dealers do not carry stocks of merchandise but order from the Company to fill specific orders already obtained. The Company makes no sales except in filling such orders.
Deliveries prior to effective date. Deliveries of nylon hose on or after October 22, 1942, the effective' && of Regulation No. 95, are subject to that Regulation; deliveries prior to that date were covered by Schedule No. 95, or if they were of a type not covered by Schedule No. 95, by the General Maximum Price Regulation. Goods are considered to be delivered prior to the effective date of the Regulation if, prior to such date, they were received by the purchaser or by any carrier, except a carrier owned or controlled by the seller, for shipment to the purchaser. The fact that the invoice carried a date prior to October 22, 1942 is not conclusive as to the time of delivery; there must be an actual delivery to the purchaser or a carrier.
Price Determination
Discounts. The maximum prices in the Regulation are net prices. Accordingly, discounts pre-viously granted by the seller *need not be continued.
Combination nylon hosiery. Combination nylon hosiery may be priced under Section 1401.2(b), which establishes maximum prices for nylon hosiery made of combination spun or blended nylon yarns, even though nylon yarn content is less than that of other yarns.
Nylon hosiery made of combination, spun or blended nylon yarns -"thirds” and "fourths". The Regulation does not establish specific maximum prices for "thirds** or hfourths” in nylon hosiery made from 100% spun nylon or from combination or blended yarns;. sellers of such hosiery should apply for maximum prices pursuant to Section 1401.3.
Violations and Evasions
Sales in conjunction with another commodity. Any arrangement by which a seller conditions the sale of nylon hose in any manner upon the purchase by the buyer of any other hosiery or commodity constitutes a violation. The seller may, however, limit the amount of nylon hosiery to be sold to a customer, provided that he does not thereby openly or covertly seek to induce such customers to buy any other goods, or to take any other action to obtain nylon hose.
Tying agreement — war bonds. A seller who offers nylon hose only on condition that the pur— chaser of the hose also purchase war bonds is violating the Regulation by a tying agreement.
Tying agreements - gifts. A seller who offers gifts of hosiery on condition that the receiver of the gift buy another commodity, is violating the Regulation as a tying agreement, Section 1401.1(c), unless he notifies the donee that the hosiery is also offered for sale unconditionally at or below the maximum price.
Maximum Price Regulation No. 153 (Revoked)
WOMEN’S, GIRLS’ AND CHILDREN’S OUTERWEAR GARMENTS
C ros s-Reference
Sales at manufacturer’s level. See digests of interpretations under Regulation No. 287.
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Sales at wholesaler's and retailer’s level. $ee digests of interpretations under Regulation No. 330.
Maximum Price Regulation No. 157
SALES AND FABRICATION OF TEXTILES, APPAREL AND RELATED ARTICLES FOR MILITARY PURPOSES
Applicability
Sale not in accordance with military specifications. The Regulation does not apply to sales and fabrication of textiles, apparel, and related articles not made in accordance with military specifications, even if the sale is made to a war procurement agency.
Intention of seller to satisfy military specifications. A commodity or fabrication service is covered by the Regulation, regardless of the seller's intention to conform to military specifications, vhere the commodity or fabrication service delivered or supplied during the base period satisfied military specifications, or satisfied such specifications except for difference due to changes in specifications. The following, however, are not normally the same commodity or fabrication service, or the same except for difference due to changes in specifications: a civilian woman's coat and an army nurse's uniform; a civilian roan's jacket and a military service coat; a man's hat and an army helmet.
War procurement agency. A private company which operates an ordnance plant on a cost-plus-a-fixed-fee basis for the United States Government is not a "war procurement agency" under the Regulation, and hence the sale of overalls to such company is not covered by the Regulation.
Sales to Panama Railroad Company. Sales to the Panama Railroad Company of textiles, apparel and related articles made to military specifications are sales to a "war procurement agency" under the Regulation since the Panama Railroad Company is an agency of the War Department*
Sales to cadet store. A sale of uniforms made in accordance with military specifications to the cadet store at the United States military academy, or to a university for use by its Reserve Officers Training Corps unit, is a sale to a War Procurement Agency and therefore subject to the Regulation.
Sale of military uniforms to retailers. A manufacturer of military uniforms who sells ■the uniforms to retailers, who in turn sell them to officers in the armed forces, is not subject to the Regulation since the manufacturer does not have a contract with a war procurement agency nor are its products finally incorporated into a product sold to a war procurement agency. Such a manufacturer is subject to the General Maximum Price Regulation.
Uniforms. The sale of uniforms in accordance with military specifications to persons other than war procurement agencies is not subject to Regulation No. 157 even though the price of the uniforms is fixed by a license or agreement with a war procurement agency. Such sales by manufacturers are subject to the applicable commodity regulation, which in the case of officer's wool trousers is Regulation No. 177 (Men’s and Boy’s Tailored Clothing).
Commission spinning. See page 74.7,
Emergency purchases. The purchase of goods which are not available for spot delivery, such as goods which are to be manufactured subsequent to the order, are not exempt from the Regulation as an "emergency purchase".
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Woolen fabrics made in accordance with military specifications which are sold to a war pro-curement agency are covered by Regulation No. 157, otherwise they are covered by the General Maximum Price Regulation, unless the sale is expressly excepted from that Regulation, or unless a specific schedule or regulation covers the fabric. Woolen apparel fabrics manufactured for civilian use are covered by Regulation No. 163 (Woolen and Worsted Civilian Apparel Fabrics) even though such fabrics are made in accordance with military specifications.
Sisal rope is not included in the term "textiles, apparel and related articles" as used in •the Reguiat ion.
Grey sheeting. See page 5:10.
"Findings." The Regulation applies only to "findings" made in whole or in part of the materials ^Listed in Section 1378.1(c)(1)(i) and (ii), or from rubber, except rubber drug sundries. Hence, the fabrication or sale of steel findings, e.g., steel weights for use in aprons, is not covered by the Regulation.
Glass thread and glass fabric. Thread made of glass is a "yarn" as that term is used in Section 1378.1(c)(1)(i). Glass fabrics which are coated and cut into strips are "textiles" or "textile products" within the meaning of that Section.
Herringbone twill trousers. Herringbone twill trousers sold to the United States Army are "textiles, apparel and related articles" within the meaning of the Regulation. Regulation
No. 208 (Staple Work Clothing) does not apply
Mattresses, life rafts. The sale of a mattress or life raft to a war procurement agency is not a sale of "textile, apparel and relaxed articles", and therefore is not subject to the Regulation. A mattress or life raft is hot within the term "other individual, organizational, or ship*s personnel equipment" under Section 1378.1(c)(l)(iii), since that term as used in the Regulation refers only to articles related to "wearing apparel."
Sale of mattress. A mattress is not a "textile, apparel and related article" within the meaning of the Regulation. Therefore, sales of mattresses by a manufacturer are not subject to the Regulation, even though they are made in accordance with military specifications; Regulation No. 188 applies. *.
Price Determination
Change in specification due to change of rate of delivery. A change by the War Department in delivery requirements, which necessitates' delivery at a rate different from that at which the same goods were delivered prior to April 1, 1942, constitutes a change in specifications under the Regulation. A specified rate of delivery of goods under an existing contract differs from a rate of delivery of goods prevailing prior to April 1, 1942 if the specified rate requires the delivery of a different number of units per week than the delivery rate which prevailed prior to April 1, 1942. Increases in cost directly resulting from such changes in specifications may, and decreases must, be taken into account in determining the maximum price pursuant to Section 1378.3(b).
"Same ... except for differences due to changes in specifications." The maximum price for part wool undershirts and drawers of the same weight and fabrication, except that the wool in one is domestic and in the other is foreign, are "the same ... except for differences due to changes in specifications" within the meaning of Section 1378.3(b), and must be priced pursuant to that section. This is also the case with part wool undershirts and drawers of the same weight and fabrication where one is 25% wool and 75% cotton and the other is 50% wool and 50% cotton.
Customary accounting policy. Where a company has customarily determined material costs on the basis of "last in, first out," this accounting method may be used, since Section 1378.3(a)(3) provides that material costs "shall be determined in accordance with the customary accounting policy of the seller."
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"Increase in material cost." The "increase in material cost" which may be added by the seller in computing the maximum prices pursuant to Section 1378.3, refers to the increase in cost of the entire material necessarily involved in the production of the finished product, and is not restricted to the material which is actually contained in the finished product. Thus, in the manufacture of certain types of knitted outerwear, the seller may include the increased cost of wasted material incurred in the course of winding, knitting and finishing, as well as the increased cost of the material actually contained in the finished garment.
Increased labor cost - piece rates - wage increases due to inspection of goods. In order to meet the higher standards of military specifications, a manufacturer inaugurated an inspection system which r esuited in reducing the worker's daily output. Pursuant to customary practice, because of collective bargaining contracts and other wage agreements, piece rates were computed by the trade to insure to each worker a relatively definite weekly income, and accordingly the manufacturer raised the piece rate to maintain his workers' weekly income at a level prevailing prior to the inauguration of the inspection system, and put the increase into effect prior to April 27, 1942, The increase in piece work rates under the foregoing circumstances may be taken into account in determining the manufacturer's maximum price under Section 1378.3(a).
Exempt sales. The exemption provided in Section 1378.4(a) does not begin to operate until the seller's certification is effected pursuant to paragraph (b), and until such time the seller is subject to the appropriate regulation (i.e.. Regulation Nos. 177, 208, GMPR, etc.). However, as soon as the certification is properly effected, subsequent sales and deliveries are exempt.
Increased cost of material. A manufacturer wove and finished airplane cloth during the base period, April 1, 1941 to March 31, 1942, but now purchases the -cloth in the grey and then finishes it. The purchase price of the grey cloth exceeds the manufacturer's production costs for the equivalent grey goods during the base period. The finisher must absorb the additional cost since the Regulation does not oontain any provision for adjusting the maximum price where an article, which was manufactured by the seller during the base period, is now purchased. However, the finisher may file an application for an adjustment under Section 1378.2(c).
Increased labor costs. The Regulation permits consideration of increased "labor costs" where the increase was made pursuant to a wage agreement entered into prior to April 27, 1942, Section 1378.3. A company agreed to increase the salaries of fixers, floor sweepers and foremen prior to April 27, 1942. Under its customary accounting policy, however, salaries for these employees were not treated as direct or indirect labor costs but as part of its sales costs. These employees are on a fixed salary basis. The salary increases to these employees may not be taken into account in determining the company's "labor costs" since they are not "labor costs" as defined in Section 1378.10 (a)(2).
Increased labor costs - "unconditional increase." The Regulation permits consideration of increased labor costs where an "unconditional increase" is made pursuant to an agreement entered into prior to April 27, 1942, Section 1378.3. A labor contract executed in 1941 provided for a renegotiation of the wago rates whenever the cost of living had increased a certain amount. Pursuant to this provision, an increase in wage rates became effective on April 27, 1942, and another on August 1, 1942. The-increase of April 27th, although conditional in the contract, became unconditional on April 27, 1942, and therefore may be taken into account in determining the seller's labor costs. The August 1, 1942 increase was not an "unconditional increase" on April 27, 1942, and therefore may not be taken into account.
A labor contract entered into prior to April 27, 1942 provided for an increase in wage rates of a fixed amount or percent to become effective May 1, August 1, and December 1, 1942. Eaoh of these increases is an "unconditional increase" and therefore nay be taken into account in determining the seller's labor costs.
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Definitions
"Fabrication service" - dyeing of thread. The dyeing of nylon thread is a "fabrication servicew under the Regulation.
"Fabrication service" - processing to produce water and mildew resistant belting. The pro-cessing of cotton belting to produce water and mildew resistant machine gun belting is a "fabrication service" under the Regulation.
Maximum Price Regulation No. 172
CHARGES OF CONTRACTORS IN APPAREL INDUSTRY
Applicability
Hosiery contractor. The specific exemption from the Regulation of "men’s, women’s, and children*8 footwear" does not exempt contract knitters of hosiery since hosiery is not "footwear."
Contractor of fur garments. See page 1:12.
Contractor who subcontracts entire work. A person who is furnished materials by another to be manufactured into an article of apparel subcontracts the entire work and does not perform any of the processes of manufacturing is not a contractor as defined in the Regulation.
Contract dyeing of hosiery. The dyeing of hosiery is not a process involving the cutting and sewing methods or knitting processes in the manufacturing of an article of apparel, and therefore, is not one of the processes subject to the Regulation.
Handkerchiefs. A handkerchief is an article of apparel furnishings and accessories under Section 1389.52(g), and therefore, an embroidery contractor's services on handkerchiefs are subject to the Regulation.
Value of materials furnished by contractor. In determining whether a contractor furnishes material ^the value of which constitutes 80% or more of the price charged for his services" under Section 1389.52(d), the value is determined as of the time the service is rendered and not as of a particular base period.
Contractor - retail distributor. See page 1:19.
Price Determination
Direct labor cost - contractor not in business during base period. A contractor who was not in business (hiring March 1942 determines his maximum prices under Section 1389.53(c). In determining "direct labor cost" under this section, he must use the March 1942 labor rates of his most closely competitive contractor manufacturing articles of the same type, plus any increased labor costs allowed such competitor in determining his own direct labor costs.
i
Direct labor cost - wage increases authorized by WLB. Section 1389.62, authorizing certain dress contractors "to pass' bh wage increases approved by the War Labor Board, merely permits the wage increases to be added to the maximum charges previously calculated by the contractors. The Section does not permit such contractors to recalculate their maximum charges on the basis of a new direct labor cost.
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"Same percentage margin over direct labor coats.” During the base period, March 1942, a contractor had one price ¿or each service to all' his customers. However, his "direct labor cost," and therefore also his percentage margin over such cost, varied at different times during the month. In determining his "percentage margin over direct labor cost" under Section 1389.53, the contractor may use the highest percentage margin over cost actually obtained by him any time during March 1942.
/ Contractor who subcontracts part of work. A contractor who performs only some of the ser-vices on a garment and subcontracts the "remainder, must determine his maximum charges to the principal in the same manner as if he did not employ a subcontrator; his direct labor costs under 1389.53(a) for the services performed by the subcontractor consist of only the direct labor cost of the subcontractor rather than the subcontractor's total charge for services performed. For instance: In March 1942, contractor (C) charged his principal (P) six dollars for a service performed by a subcontractor. The cost to C was five dollars determined as follows: The subcontractor (SC) had a direct labor cost of four dollars, a margin of 25%, and thus charged 0 five dollars. According to Section 1389.53(a), C's percentage margin over direct cost was 50%. SC's percentage margin over cost was 25%. C determines his maximum price for the same service today in the following maimer: SC had an increase in wage rates of 10%, making his direct labor cost $4.40, SC charges 25% of $4.40 making his charge to C $5.50. C calculates 50% of $4.40 making a margin of $2.20 and establishes his maximum price as $6.60 for the same service.
•
Fur supplied by retailer and attached to coat by manufacturer. See page 1:20.
Direct labor costs. Section 1389.53 provides that any increase in wages subsequent to March 31, 1942, pursuant to a "collective bargaining contract or other wage agreement" executed on or before April 27, 1942, may be considered in arriving at the direct labor cost. Voluntary wage increases granted to nonunion employees of the industry and in effect prior to April 27th, may be considered by the contractor in calculating his direct labor costs.
Incidental materials supplied by contractor. A contractor who did not make any additional charge ¿or incidental materials supplied bo his principal during the base period, March 1942, may not now charge for such materials in determining his maximum price under the Regulation.
Direct labor cost.
Question: During March 1942 a contractor’s direct labor cost was $10.00 and he charged his principal $15.00. The $10.00 labor cost was computed on basis of 5 men receiving $2.00 each. The contractor now has only 4 men and supplies the services of the 5th employee himself. May he now charge $15.00 for the same service?
Answer: Yes. In this situation the contractor may regard his own direct work' as direct labor cost.
Question: During March 1942, a contractor employed 4 men at $2.00 each and charged his principal $12.00. He then performed direct work on garments himself, but now has substituted an employee to do the work formerly done by him. The direct labor cost is now $10.00. May the price be increased to $15.00?
Answer: No. Exactly the same service is being provided. The percentage margin over direct labor cost during March was actually 20 percent and not 50 percent.
Increased labor costs - "unconditional increase." See page 1:23.
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Contractor who supplies trimmings.
Question: How does a contractor who supplies trimmings that are incidental to the processing determine his maximum prioe under Section 1389«53?
Answer: If the service performed by the contractor with respect to the processing and the furnishing of the trimmings are the same as or similar to the March 1942 service and materials, the contractor determines his maximum price under Section 1389.53(a) or (b); otherwise Section 1389.53(c) applies.
Classification
Contractor. In order to qualify as a "contractor” under Section 1389.52(d) and (e)(2), the fabricator’s charge for materials supplied may not exceed the cost prioe. If the fabricator charges a markup on the materials in addition to his service charges, he is classified as a manufacturer, subject to Regulation No. 287 (Manufacturers’ Prices for Women’3, Girls•, Children’s, and Toddlers’ Outerwear Garments).
Maximum Prioe Regulation No. 177
MEN’S AND BOYS’ TAILORED CLOTHING •
Applicability
Last fall’s stock. The sale of men’s overcoats carried over by a retailer from the 1941 fall season is covered by the Regulation and the additions to the base period prices may be made pursuant to Section 1389.122(a).
Tailored clothing. A cavalry twill coat made of a plain fabric containing 60% wool and 40% cotton and having a full leather lining, zipper front, and bi-swing shoulders is not "tailored clothing” under the Regulation. Although most of the features of construction which characterize tailored clothing are present, the coat is distinguished by additional characteristics, i.e., the leather lining and zipper front, which are seldom found in business and dress clothing and which characterize the garments as a utility or activity item.
Used garment. See page 1 ?18
Damaged clothing. The Regulation applies to the sale of smoke-damaged tailored oloth-Ing.
"Tailored" blouses. The additional amounts that may be added to the base period prices, Appendices A and C, are those for "separate coats". "Blouses made in the manner commonly used for coats", referred to in Section 1389.102(a)(l)(iv), means "blouses” with such features as padded shoulders and lapels. For example, the article worn over the shirt by an army officer is known in the army as a "blouse" although a civilian would usually call it a coat.
"Rainwear" garment. The Regulation excludes "rainwear" from the definition of "tailored clothing**, see Section 1389.119(a)(12). An outer-coat which is cut, made, and trimmed in a manner generally used for business and dress coats and made of fabrics other than those listed in Section 1389.119(a)(12)(iv), is covered by the Regulation though it is treated to repell water and is made by a manufacturer of rainwear who regards it as a "rainwear" garment. For example, the naval officer’s wool serge "raincoat" with removable lining, which retails at $37.50, is considered "tailored clothing", not rainwear.
Uniforms sold by a military academy. The Regulation applies to all persons who sell or deliver men's and tjoys"’ tailored clothing. A military academy, even though it is a nonprofit institution, is a "person"under the Regulation. Section 1389.199(b) incorporates by reference the definition of "person" set forth in the Act.
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Regulation sailer uniforms are not "tailored clothing" and therefore are not covered by the Regulation.
Sale of coat lining. Where the sale of a coat and the sale of a lining are independent of each other, the maximum price of the lining is determined under the General Maximum Price Regulation.
Where a coat and lining are sold as one garment, or sold separately at the same time to the same customer, the combination is subject to and priced under the Regulation.
Where a coat and lining are sold separately to the same customer with an interval of time between the two sales, the applicability of the Regulation depends upon the facts, i.e., the amount of time between the two transactions, the good faith of the parties and whether the sales are in any manner connected or tied together.
Maximum prices established by Regulation No. 142. Section 1389.108(b) of Regulation No. 177 provides that the Regulation is not applicable to the sale of summer seasonal items for which maximum prices are "established" by Regulation No. 142 (Retail Prices for Summer Seasonal Commodities). However, where Regulation No. 142 provides merely that a certain sale shall be governed by the General Maximum Price Regulation, a maximum price is not ^established" within the meaning of Section 1389.108(b) and therefore Regulation No. 177 is applicable.
"Extra-fancy" sailor uniforms are not "tailored clothing" and therefore are not covered by the Regulation; the General Maximum Price Regulation applies.
Clothing made of poplin. Slack suits made of McCampbell’s medi slub poplin are not "tailored clothing*^and are therefore, exempted from the Regulation, (see Section 1389.119(a)(12)(iv)). If the garment is a semi-dress or sport combination consisting of shirt and pants, it is covered by the General Maximum Price Regulation.
Price Determination
Dissolution of corporation and formation of partnership. Where a corporation doing busi-nesjs during the base period was dissolved and its owners and management formed a partnership which manufactured the same garments, used the same trade name and bought from the same supplier, the partnership’s maximum prices are the same as those of the corporation and must be determined by reference to the bookings and deliveries of the predecessor corporation.
Sales by salesmen at uniform prices. Where the salesmen of a company are directed to sell the garments at uniform prices, the salesmen are not separate "sellers" and are bound by the maximum prices of the company. If, however, the company merely recommends a list of uniform prices to all its salesmen but permits its salesmen to fix their own selling prices, each salesman is a separate seller under the Regulation, must determine his individual maximum prices under the Regulation, and must prepare and file his price list with his local War Price and Rationing Board.
"Similar" garments. Fabrics differing in weight are not "similar" fabrics under Section 1389.102(b); thus a 13-ounce worsted garment is not "similar" to a 14-ounce worsted garment. A plain fabric of the same construction, weight and fiber content as a decorated fabric is "similar" to the decorated fabric, since they are usually sold at substantially the same price. If, however, different prices were customarily charged during the base period for garments made of these different fabrics, e.g., extra charges for plaids as against plains, the established differentials may not be changed unless the change results in a lower price, see Section 1389.109(b)(2). Garments differing in percentages of wool are not "similar"; thus a garment using a fabric of virgin and reprocessed wool in the proportions of 40 and 60 percent, respectively, is not "similar" to one using the proportions of 60 and 40 percent respectively.
Where a manufacturer dealt in two-pants suits during the base period he must determine the maximum price of a similar one-pants suit under Section 1389.107(a)(2), even though
600780 0 - 44 -4
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he also sold a similar one-pants suit during that period. Thus, where a manufacturer's base period prices for the two-pants suit and one-pants suit were $30.00 and $25.00 respectively, the maximum price for a similar one-pants suit is $24.90 (83% of $30.00) and not $25.00.
Increase for sale at retail of ready-made garment. Under Section 1389.103(a)(4)(i), the 10% increase to sellers in certain geographic areas may be applied only if the seller's "maximum price'* is no higher than his highest October 1941 price, for the same or similar garment. "Maximum price" as used here means the highest March 1942 price before the application of the 10% increase. The maximum price as increased under this subparagraph may exceed (up to the permissible 10% increase) the highest price charged in March for a garment of the same classification.
Tailored clothing. See page 1:8
Customary discount - differentials. The Regulation provides that no seller may change his allowances, discounts, or other price differentials which he customarily made during the appropriate base period unless such change results in a lower net price. This provision does not make it necessary for a seller to maintain the actual discounts or allowances that he made during the base period regardless of his quoted price. Thus, if a seller lowers his quoted price, he may change his terms of payment, provided that the new terms on the lower quoted price do not result under any circumstances in requiring a greater payment than would have resulted under the customary terms in effect during the base period.
Transfer of business. Retailer A had a highest price-line limitation of $50 for a par-ticular type of men's suits, and B, his competitor, had a limitation of $40. Retailer B purchased the stock-in-trade, goodwill and fixture of A and continued to do business selling both the newly acquired assets and his other assets at the same place of business as before. The highest price-line limitation of B for this type of suit is $40. B does not have the highest price-line limitations of A since B does not carry on A's business"in an establishment separate from any other establishment previously owned or operated by him", see Section 1389.110. If store A and store B are owned by the same person or chain, and store A is closed and the stock-in-trade, good-will and fixture are transferred to store B, the jtighest price-line limitation of the B store is applicable to the sale of A’s stock-in-trade at the B store.
Combination sales. During the base period a seller sold a group of suits normally priced at $11.75 together with a group normally priced at $14.75 at the combination price of $14.25. In determining the maximum prices for any suit under Section 1389.104, the seller is required to base it upon the price at which he booked similar suits during the base period. Any price used for a combination sale of dissimilar suits must be disregarded. Hence, the maximum price for the sale of suits normally priced at $11.75 will be determined by reference to separate sales of similar suits in the base period; the combination price may not be used to increase the maximum price. Neither will the combination price be applicable so as to lower the maximum price on suits similar to those normally sold in the base period at $14.75. However, if the seller makes a combination sale in the same proportions as last year, the combination price of $14.25 must be used as the basis of the maximum price for the combination.
"Tailored" blouses. See page 1:8
Limit on retailers' maximum prices. Section 1389.103 (ready-made garments) provides that "No maximum pride ... shall exceed the seller's highest price for a garment of the same classification, the same as or similar to a garment which he dealt in during the base period." Section 1389.105 ("made to measure" garments) provides that: "No maximum price ... shall exceed the highest price at which the seller • • ^Suring the base period/ offered a garment of the same classification . .
Retailers fixing their limit on maximum prices under each of these sections must segregate their base-period sales of ready-made garments from their base-period sales of "made to measure" garments, since each section applies only to the particular gar-
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meats therein enumerated and, moreover, different base periods are prescribed in each section.
Retailers clearly ’’dealt in” ready-made garments during the base period if the garments were delivered during the base period, or were in the store, priced and deliverable during that period. A retailer also ’’dealt in” a garment, even though it was not carried in his regular stock, but was ordered specially by a particular customer, if he could have delivered the garment to the customer during the base period. A mere readiness to take orders on the basis of a catalog or swatches would not, however, be sufficient unless the retailer offered to a particular customer a specific garment from a catalog or swatch book at a definite price, and unless the retailer could have delivered that garment to the customer during the base period.
With respect to ”made to measure” garments, a readiness to take orders on the basis of a catalog or swatches is sufficient, because sellers of ”made to measure” garments normally regard catalogs and swatches as their stock-in-trade. The requirements of baseperiod delivery, or ability to deliver, does not apply to ”made to measure” garments.
Replacement cost,— discounts ahd advertising allowance. In calculating ’’replacement cost” under Sections 1389.103(a)(3) and (b)(3) of Regulation No. 177, and Section 1389.503(b) of Regulation No. 332 (Simplified Men’s and Boys’ shirts and Pajamas), the seller must deduct available cash and trade discounts, whether or not he actually takes them. He need not subtract advertising allowance unless such allowance was tantamount to a special discount, as where the advertising allowance was extended without actually performing any advertising service.
Charge for providing cuffs. Where it was a retailer’s customary practice during the base period, March 1942, to provide regular cuffs on pants without any charge, the retailer must continue to provide such cuffs without additional charge, even though the proportion of French cuffs to regular cuffs is currently larger than during the base period.
Highest price line limitation - departmentalized seller. The owner of a chain sells tailored clothing through two outlets. The highest price line limitation for a particular classification of garments is $35 in the first store and $45 in the second. The owner now proposes that his first store carry a $45 garment of this classification for purposes of display only, and make sales thereof as agent for the second store. The proposed action by the seller would constitute a violation of Section 1389.103(c)(3). An agency is considered to be a department just as much as a leased or a store-owned department.
Definitions.
Tailored. Uniforms are tailored if they are cut, made and trimmed in the manner gener— ally used for business and dress clothing, as contrasted with the manner generally used for work clothing, rain wear and furnishings or haberdashery. Thus, sales of most uniforms for use by Army and Navy officers, conductors, brakemen, porters, etc., are covered by the Regulation, except those made of the cotton fabrics which are specifically excluded.
’’Tailored to the trade” clothing. Tailored clothing manufactured to individual measure— ment is ^’tailored to the trade” clothing even though the clothing is ordinari ]y a readymade stock number in stock size. •
Records and Reports.
Receipts from a leased department in a department store. See page 1:15
’’Manufacturer”. In order to be classified as a ’’manufacturer” the seller need not necessarily perform the cutting and sewing operations at his own plant or premises. Thus, a
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seller who has the clothing made for his account by an independent contractor is a ’’manufacturer” required to file the information called for by Sections 1389.115 and 1389.116.
Parent and subsidiary corporation - manufacturing-retailer. A holding and service company has several wholly owned subsidiary corporations which sell men’s and boys’ ready-made tailored clothing at retail. The subsidiaries obtain all their supplies from the holding company. The holding company has the clothing manufactured by independent contractors. The holding company and its subsidiaries are considered to be a single seller of the type known as a ’’manufacturing-retailer”. The holding company should file with OPA the retail selling prices of its subsidiaries, rather than the bookkeeping prices at which the holding company bills the goods to the subsidiaries.
Maximum Price Regulation No. 178
WOMEN’S FUR GARMENTS
Applicability
Used garments. See page 1:18
Contractor of fur garments. Charges for services performed by contractors in the manu-facture of women’s fur garments are governed by Regulation No. 172 (Charges of contractors in Apparel Industry). A”oontractor" is defined in Regulation No. 172.
Garment manufactured of skins supplied by customer. A retailer who makes up a fur gar-ment from skins supplied to him for that purpose by the customer is performing a service, the maximum price of which is not subject to Regulation No. 178; the General Maximum price Regulation applies.
Muff made of fur and fabric.
Question; Is a muff of which the entire front is made of fur, and the entire back made of fabric, priced under the Regulation?
Answer: Yes, if the value of the fur is greater than the value of any other single material used in the muff. If the value of any other single material used in the muff is greater than the value of the fur, the General Maximum Price Regulation applies.
Fur handbags which cannot be classified as muffs are not "women’s fur garments” within the meaning of Section 1389.165(a)(1) and therefore are not covered by the Regulation; the General Maximum Price Regulation applies.
Price Determination
Sale by manufacturer’s representative at retailer’s store. Where the representative of a manufacturer sells a garment” to the customer b? the retailer at the retailer’s store, and after such sale charges the garment to the retailer as a wholesale transaction, the sale by the representative to the retailer’s customer is subject to the maximum prices and price limitations of the retailer, since the sale is made on behalf of the retailer and not the manufacturer.
Where retailer was a selling agent during the base period. Whew a retailer acted merely as a selling agent for another seller during the base period, and did not purchase and resell, or offer to sell any fur garment for his own account during that period, he determines his present maximum prices under Section 1389.154(a).
Optional provisions for garments purchased prior to July 10, 1942. Where the seller un
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conditionally purchased women’s fur garments prior to July 10, 1942, and these garments are of the same category as those delivered or offered for sale during the applicable base period, he has the option of determining his maximum prices on such garments under either paragraph (a) or (d) of Section 1389.152.
Where a wholesaler or a retailer unconditionally purchased a fur garment prior to July 10, 1942, the maximum price is established under Section 1389.152(d), regardless of how long before July 10, 1942, he purchased it. Thus, a fur garment purchased in 1940 and still in the seller’s stock may be priced under this section.
Garment purchased prior to July 10, 1942 - lowest percentage mark-up.
Question: Does a retailer of fur garments under Section 1389.152(d) use his lowest initial percentage mark-up on the same classification of garment of the same kind of skin as the garment being priced, or does he use the same classification in any kind of skin, or the classification and kind of skin on which he has established the lowest percentage mark-up, regardless of whether it is the same classification and kind of skin as the garment being priced?
Answer: A retailer in pricing a fur garment under Section 1389.152(d) uses the gar-ment regardless of classification or kind of skin on which he has established the lowest initial percentage mark-up over cost under Section 138^152 (a).. He does not necessarily use a garment of the same classification and same kind of skin as the garment being priced unless such a garment has the lowest initial percentage markup of any classification of garment of any kind of skin which he sold during the base period. For example, in pricing coats, he must use jackets if a garment in that classification has the lowest initial percentage mark-up.
Initial percentage mark-up - used garments. The prices at which used, as well as new, garments of the same classification and kind of skin were first offered for sale during the base period must be taken into account in determining* the initial percentage mark-up under the Regulation
Manufacturer’s percentage mark-up under Section 1389.153(a)(2) should be determined solely on the basis of his sales to wholesalers and retailers; sales to ultimate consumers shduld be excluded.
Garment of same category - grade of skin. An improvement in the quantity of the skins does not take the fur garment ouf of the particular category manufactured last season since there may be different grades of skins within the same category. The maximum price for each category may not be exceeded regardless of the difference in grade and quality of skins.
Direct labor cost - manufacturer who subcontracts. ’There the manufacturer supplies the skins to a subcontractor who makes it into a garment, the ’’direct cost of garment to manufacturer” under Section 1389.165(a)(12) is the direct labor cost of the subcontractor, rather than the subcontractor’s total charge for services performed, plus the actual cost to the manufacturer of the skins and trimmings.
Lessee of fur department. The X Company has operated several establishments selling women’s fur garments, and is about to lease from Y department store a fur department. This fur department has been operated for several years by another lessee. There will be no transfer of the business, assets or stock-in-trade of the prior lessee. The Y department store will be paid on the basis of a percentage of the total business transacted in the leased fur department. The X Company does not take over the former lessee’s maximum prices, since there will not be a transfer of business or stock-in-trade within the meaning of Section 5 of the General Maximum Price Regulation, incorporated in Regu- -lation No. 178 by Section 1389.153. The X Company determines its maximum price for its newly leased fur department in the same manner as a retailer opening a new store, since , it is considered a ’’separate seller” under Section 1389.165(a)(15), and must apply to OPA pursuant to Section 1389.154(a) for a determination of its maximum prices.
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Computation of cost of each garment purchased in a lot. Where no specific price was contracted for each style of fur coats in a lot of merchandise and the supplier’s invoice does not, therefore, show the specific cost of each garment, the retailer may determine the cost for each garment by (a) averaging the lot, i.e., by dividing the total purchase price of the lot by the number of garments in the lot, or (b) regarding the garments in the lot and assigning a price for each garment, provided the assigned price is made on a reasonable basis and the total of all the assigned prices does not exceed the total price actually paid for all the garments in the lot. The retailer must keep a record of the “cost" of each fur garment so determined pursuant to Section 1389.160(c)(1).
Category of garment. A seller’s different categories of garments are established by reason of the fact that he customarily charged different prices for the garments either because of the geographical origin of the skins or because of any other factor listed in Section 1389.165(a)(3), and not because his cost of the garments customarily differed. Thus, a seller who customarily sold northern muskrat, southern muskrat, and New York muskrat in different price ranges thereby established three different categories based on geographical origin. However, if the seller sold these types of garments in the same price range (so that he had no price differentials due to geographical origin), the seller has only one category of muskrat coat even though he customarily bought the muskrat at different prices.
Fur department in department store. Where a department store leased its fur department to a company during the base period, July 1 - December 31, 1941, receiving a commission on the gross sales made by the company, the company and not the department store was the ’’seller” of the fur garments during the base period. Therefore, the department store may not base its maximum prices for garments it now wishes to sell on its own account on the base period prices of the leased fur department. The department store must apply to OPA for a determination of its maximum prices, pursuant to Section 1389.154(a).
Dissolution of partnership. Upon the dissolution of a partnership one of the partners retained the name of the firm and moved to a new location, while the second partner continued to do business in the old establishment, retaining all records, invoices, merchandise and stock in trade. Only' the second partner is subject to the maximum prices of the firm; the first partner determines his maximum prices as a new seller under Section 1389.154.
Optional provisions for garments purchased prior to July 10, 1942 and not sold during base period. Where the seller unconditionally purchased women’s fur garment prior to July 10, 1942 and these garments are not of the same category as those delivered or offered for sale during the applicable base period, he has the option of determining his maximum prices on such garments under paragraph (b) or (d) of Section 1389.152.
Highest offering price during the base period. At the request of a customer, a retailer procured from a wholesaler a garment on approval during the base period. The retailer made an oral offer to his customer. The customer rejected the offer, and the garment was returned to the wholesaler. The retailer’s offer established the ’’highest initial offering price at which he offered for sale a garment of the same category during the applicable base period.”
Retailer in business during base period but unable to price under Section 1389.152. A retailer of* fur garment's who was in business during the base period, but cannot price his garments under Section 1389.152, must apply for authorization of his maximum prices pursuant to Section 1389.154(d).
Credit terms.-
Question: A retailer of fur garments, during the base>period sold garments on long term credit with minimum cash payment and maximum credit, and now wishes to sell for cash and short term credit as used by department stores and specialty shops. May he compute his margin on the same percentages as during the base period?
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Answerr No. Reduction of credit period amounts to an increase in price. Therefore, the maximum price must be reduced proportionately. Any charge previously made for credit must be deducted on a cash sale or decreased on a short term credit sale.
Category of garment. A seller who customarily charged different prices for coney coats because he used different parts of coney skins in the coats has established different categories of coney coats, see Section 1389.165(a)(3). Where during the base period, the seller sold only one classification of coney garment, using only one part of skin, but the trade recognizes price differentials between different parts of coney skins, a garment made of different parts of skin constitutes a new category.
Most closely competitive seller of the same class. See page 1:28
New wholesaler. The statement submitted under Section 1389.154(b) by a new wholesaler (i.e., a wholesaler who did not sell women’s fur garments during the base period) is to be used as a basis for all future pricing by such wholesaler under the Regulation, just as if it represented his base period experience. Thus, the new wholesaler’s maximum price of any garment may not exceed the highest maximum price for any garment in the category listed on the statement. Categories, classifications, etc., different from those listed on the statement are treated as new categories to be priced according to Section 1389.152(b).
Garments purchased prior to July 10, 1942. A fur garment, unconditionally purchased by a retailer before July 10, 1942, may be sold at the maximum price calculated under Section 1389.152(d). There is no time limit on the period during which such garment may be sold. Nor is the maximum price subject to any highest price line limitation. The only requirement is that the seller file the statement required by the section.
Category of garment - differences of dyes or blends. Section 1389.165(a)(3) lists the different factors which the seller must take into account in determining his categories of fur garments. Since dyes or blends were removed from the list of factors by amendment, a seller who customarily charged different prices for garments solely because he used different dyes or blends, does not thereby, for purposes of Section 1389.165(a)(3), establish different categories of garments.
Coat made of oloth and fur. See page 1:25
Category of garment - differences in number of skins used. A seller who customarily charged different prices for a five-stripe, seven-stripe and a nine-stripe beaver coat has not thereby established three different categories of beaver garments. The number of skins used in a garment is not one of the factors to be considered in determining different categories of garments for purposes of Section 1389.165(a)(3).
Records and Reports.
Receipts from a leased department in a department store. The lessee in a department store may continue his customary practice of giving receipts on the sales slips of the department store. When he furnishes a receipt upon request, however, and where he would not previously have given one, he must indicate upon the slip that he is the seller.
Chain stores. Where a seller makes sales through more than one selling unit, each separate place of business of the seller is deemed a separate seller. Hence each store of a chain is required to keep the records described by Section 1389.160(c) unless the chain has received a Uniform Pricing Order covering fur garments and permitting maintenance of records in the central office. In such a case, only a list of highest price lines for each category need be kept at each outlet.
Sale of fur garments at dealer’s stores. A company sells its fur garments through various independent dealer stores which are paid a commission on the garments sold. The orders are taken at the dealer stores and written in the customer's name, but the customer deals directly with the company. The dealer stores also take orders for the storage and repair of fur garments. Under these facts,each dealer store is a separate seller within the meaning
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of Section 1389.165(a)(15) of Regulation No. 178, and eaoh store should keep the records required by Section 1389.160(c). On storage and repair work, the dealer should comply with the record and filing requirements of Section 1499.108 of Regulation No. 165 (Services).
Garments purchased prior to July 10, 1942. See page 1:15.
Application for authorization of maximum price. See Supplementary Order No. 23.
Computation of cost of eaoh garment purchased in a lot. See page 1:14.
Maximum Price Regulation No. 208
STAPLE WORK CLOTHING
Applicability
White duck pants. Ordinary white duck pants sold separately and not as part of a naval uniform are classified as "work pants" under the Regulation.
Children's bib overalls. Beys* bib overalls, sizes 1 to 8, are covered by the Regulation. Bib overalls which are^"styled for both boys and girls without features distinguishing them for use by male sex are not boys' garments and are not covered by the Regulation.
Twills. The Regulation covers work pants made of any weight of cotton twill since the classification "twills, finished and unfinished" in Section 1389.217(b)(11), is not limited to certain weights. However, no deduction need be made from the base price except for 8.2 ounce twill, Army types 1 to 5, seo Section 1389.203(e).
Unlisted classification and construction. The Regulation covers only garments of the classifications and material const ructions listed in Section 1389.217. Accordingly, the sale of other types of work clothing, such as shop ooats, shop aprons and meat packer -cooler coats, are not subject to the Regulation.
Seasonal items. The Regulation applies to the sale of all garments of the classifications and material constructions listed in Section 1389.217, whether or not such garments are "staple" items. Hence, a one-piece work suit made of "finished jean" cloth is covered by the regulation even though such suit is a summer seasonal item.
Clothing containing only cotton fibers. Price Regulation No. 177 (Men's and Boys* Tailored Clothing) specifically excludes from the operation the sale of clothing regardless of the particular manner in which it is constructed when made of fabrics of the following types which contain only cotton fiber: corduroys, denims, coverts, jeans, drills, oottonades, whipcords, moleskins, poplins, and twills, see Section 1389.119(a)(12). Garments made of these fabrics are usually work clothing subject to Regulation No. 208.
Bleached jeans. Jeans which are bleached or dyed are subject to the Regulation as "finished" jeans.
Herringbone twill trousers. See page 1:4.
Sale of linen supply service establishment. The sale of staple work clothing to a linen supply service establishment is subject io the Regulation. It is not a sale at retail excluded from Regulation No. 208 by Section 1389.202. Section 1499.20(c) of the General Maximum Price Regulation (incorporated by reference into Regulation No. 208) defines "sale at retail" as a sale to an ultimate consumer other than an industrial or commercial user, and a linen supply service establishment is an industrial or commercial user.
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Price Détermination
Fraction of cent. Where the maximum prioe results in a figure containing fractions of a half-cent or quarter-cent, the seller may not adjust the fractional cent to the next higher whole cent.
Deductions. The deductions required to be made from the base prioe pursuant to Section 1389.203(e) apply to all garments whether or not simplified.
"Finished" drills. Pre-shrunk or sanforised drills are "finished" even though they are not bleached or dyed.
"F^-shed* cloth. The deductions for certain "finished" cloth provided in Table 1 of Section 1389.203(e) apply to cloth which is pre-shrunk or sanforised after the weaving operation since this post-weaving operation is a finishing process.
Same commodities - differing standards of workmanship. A seller who manufactured work clothe ing in a union plant during the base period now has the clothing manufactured for him by a non-union contractor. Ha desires to price a garment under Section 1389.203(a), by reference to his list prices in effect during the base period. In order to price the garment under this section, it must be the "same" as the one shown on the price list. Under Section 1389.203(d)(3), garments are not the "same" unless they are made with the same standards of workmanship. Therefore, the maximum price of the garment presently manufactured for the seller may not be based on the seller's base period list price of the garment unless the same standards of workmanship prevailed in the manufacture of both garments.
Prioe list. In order for a prioe list to qualify as having been "generally circulated among the seller's customers or representatives" within the meaning of Section 1389.203(a)(1) it is not necessary that the list be distributed or exhibited to customers. It is sufficient if they be generally distributed, or even exhibited, at the seller's place of business, to the seller's salesmen or representatives to the trade. In general, prioe lists and changes in prioe lists may consist of informal memoranda, letters, telegrams, and other written papers.
Maximum Price Regulation No. 221.
MANUFACTURERS* PRICES FOR FALL AND WINTER KNITTED UNDERWEAR
Applicability
Commodities sold throughout the year. The Regulation is applicable to the sale by the manufacturer of any commodity listed in Appendix A whether or not it was exclusively sold during the fall and winter season, except that "winter-weight" and "heavy-weight* commodities are subject to the Regulation only if the manufacturer delivered at least 65% of his 1941 production of such commodity from June 1, 1941 to December 31, 1941. .
Fleece-lined knitted sweatshirts. Fleece-lined knitted sweatshirts and other commodities listed in the Appendix which are not described as "winter-weight" or "heavy-weight" are covered by the Regulation, whether or not they meet the test prescribed for "winter-weight" and "heavy-weight" garments, i.e., these commodities are covered even if the manufacturer delivered less than 65% of his 1941 production from June 1, 1941 to December 31, 1941.
Manufacturer who sells as distributor. In determining whether a "manufacturer delivered ah leash 66% of his 1941 production* from June 1 to December 31, 1941 under Section 1389.314, the manufacturer may consider only garments which he manufactured; garments which he purchased for resale may not be included.
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Price Determination
"Current cost" of retailer and wholesaler’s and manufacturer’s maximum price. See page 22:10.
Oral contract or written confirmation during base period. In determining his maximum price under Section 1389.302(a)(1), the manufacturer must refer to written orders or contracts during the base period; he may not refer to an oral contract or to a written confirmation of an oral contract even though shipment was actually made under it for the fall and winter season of 1942.
Open price clause. A clause in a contract which provides that the price to be paid by the purchaser will be the maximum price in effect at the time of delivery of the goods is not a violation of the Regulation. Regulation No. 221 incorporates by reference the General Maximum Price Regulation in which the definition of "sell" specifically permits open-pricing.
Maximum Price Regulation No. 274
WOMEN’S SILK HOSIERY
Applicability
Silk and wool combination hosiery. See page 22:9.
Maximum Price Regulation No. 287
MANUFACTURERS’ PRICES FOR WOMEN'S, GIRLS’, CHILDREN’S AND TODDLERS' OUTERWEAR GARMENTS
Applicability
A garment is "in process of manufacture" on December 15, if it has reached the cutting stage on that date, i.e., the material has been stretched on the cutting table ready for cutting.
Where the manufacturer does not cut garments in his own factory but has them cut by a contractor, the garments are considered to be in the process of manufacture on December 15 if on or before that date (a) the contractor has physical possession of the material, and (b) the manufacturer has forwarded to the contractor specific cutting instructions for this material.
Used garments. The Regulation covers the sale of used as well as new clothing.
"Boys" legging sets in sizes 1 to 10, inclusive, are included within the term "children’s" legging sets.
Garments containing wool. The instructions in Section 31(a)(2) apply to garments manu-facture’d' from fabrics containing 25% or more than 25% wool, regardless of the type of wool. Selling price lines must be determined under that Section, even though the entire wool contents of the garments consists of "reused wool".
Fur-trimmed suits are subject to the Regulation.
Women’s burial garments are not "women’s, girls’, and children's outerwear garments" within the me'aning of Regulation No. 287, or Regulation No. 153 (Women’s, Girls' and Children's Outerwear Garments), and therefore are not covered by these Regulations; the General Maximum Price Regulation applies.
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Dresses for "utility wear". See page 1:27.
Boys’ and children’s garments. Garments generally known in the trade as "boys’" rather than ’'children's" garments are not covered by Regulation No. 287.
Housecoats are not "dresses”, nor are they included in any category listed in Regulation No. 267 and No. 330 (Retailers’ and Wholesalers* Brices for Women’s, Girls’ and Children’s Outerwear Garments), and therefore are not covered by these Regulations; the General Maximum Price Regulation applies.
Sale under lend-lease. The sale of garments covered by the Regulation to the Russian War Relief Agency under lend-lease is subject to the Regulation.
Contractor - retail distributor. A producer manufactures garments for retail distributors (mail order houses and chains )'•' The retail distributors supply the fabrics for the garments. The producer is subject to Regulation No. 287, except in the following cases:
(a) Where the retail distributor consigns the fabrics to the producer and the value of the trimmings and other materials furnished by the producer constitutes less than 30% of the price charged by the producer.
(b) Where the retail distributor sells the fabrics to the producer pursuant to an agreement, providing that garments produced from the fabrics shall be sold only to the distributor at a price based upon the cost of the fabrics to the producer, plus a charge for his services, trimmings and other materials supplied by him, and the trimmings and other materials constitute less than 30% of the total price.
In each of the above cases the producer is subject to Regulation No. 172 (Charges of Contractors in Apparel Industry), and the Retail Distributor is subject to Regulation No,. 287 as a manufacturing-retailer.
Children’s garments.
Question: A manufacturer makes toddlers’ and children’s coats and jackets for both boys and girls in sizes 1 to 6. Does he price the boys’ garments under the Regulation?
Answer: Yes. He prices both the boys’ and girls’ coats and jackets under the Regu-1 at ion if they are "children’s" coats and jackets.
Question: A manufacturer of boys’ clothing makes boys’ coats sizes 2 to 8. He does not manufacture any girls’ clothing. The garments in the 2 to 8 size range are not the same sizes as children’s garments bearing the same size label. Does he price the boys’ coats up to size 6 under the Regulation?
Answer: No. The boys’ coats are not children's coats covered by Regulation No. 287. They are boys’ clothing, priced under Regulation No. 177 (lien’s and Boys' Tailored Clothing) if they are tailored olothing, or Supplementary Regulation No. 14 or the General Maximum Price Regulation if they are not.
Two-piece garments. All two-piece garments consisting of skirt and lined jacket are classified as "suits" under the Regulation. Two-piece garments consisting of separate skirt and blouse or unlined jacket are classified as "dresses".
Garments manufactured under WPB order M-207.
Question: A manufacturer manufactures women's work shirts for a munitions plant from materials obtained by the assignment of an A-2 preference rating by WPB, pursuant to limitation Order M-207. The munitions plant rejects the material and the manufacturer uses it in the production of ohileren’s overalls. Are these overalls covered by the Regulation?
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Answer: Yes. The garments produced from such material are no longer excluded by the first paragraph of Section 27 if they come within the listed category descriptions.
Dresses - uniforms. Uniform dresses worn by girls and children attending parochial or other private schools are not covered by the Regulation or Regulation No. 330 (Retailers’ and Wholesalers’ Prices for Women’s, Girls* and Children’s Outerwear Garments) since these Regulations do not apply to uniforms ordinarily purchased only for institutional use; the General Maximum Price Regulation applies.
Girl Scout uniforms are not covered by Regulation No. 287 nor No. 330; the General Maximum Price Regulation applies.
Price Determination
Garment of different category. During the base period, a manufacturer delivered two-piece women’s suits ab $6.76. He also delivered separate jackets which were the same as, or similar to, jackets which were part of the suit. He did not deliver or offer to deliver separate skirts during the base period. His maximtun price for separate skirts the same as, or similar to, those which were part of the $8.75 suit is determined by Rule 3 of Regulation No. 287 and is not $8.75 less the price charged for the separate jacket.
"Direct labor costs”. The following are not "direct labor costs" for the purpose of com-puting cost under Section 30(a)(10) of Regulation No. 287: salaries of foreman and designers, and employers' contribution to Social Security and Unemployment Compensation. Salaries of examiners are charges to direct labor costs only when the examination is performed in connection with the original factory examination and not in connection with any supervisory examination by the manufacturer after the garment comes from the contractor's shop.
Fur supplied by retailer and attached to coat by manufacturer. A manufacturer of cloth coats who attaches fur brimmings supplied by the retailer is not a contractor pursuant to Regulation No. 172 (Charges of Contractors in Apparel Industry) since more than 30% of the charges by the manufacturer are for materials supplied by him. The manufacturer is subject to Regulation No. 287 and his maximum price is the maximum price of the cloth coat as determined under that Regulation plus the charge for sewing the fur, provided that this total plus the cost of the furs to the retailer does not constitute a higher price line than that which the manufacturer had for coats during the base period. The retailer's cost for the garment, for purposes of determining his maximum price, is the price paid to the manufacturer plus the cost of the furs.
Cost of materials - customary source of supply. A manufacturer customarily purchased materials and trimmings from mills and jobbers. Because of the current scarcity and tight deliveries of merchandise he now purchases from retail stores. Under the Regulation, "cost of material” and "cost of trimmings" may not exceed the actual net cost or the maximum price of the customary source of supply, whichever is lower, Section 30(a)(8)(i). Since a retailer is not a manufacturer’s customary source of supply, the manufacturer's cost of materials and trimmings may not be based on the price charged by the retail stores.
Direct-cost - labels, pin tags, string tags.
Question: Are labels, pin tags, or string tags placed on a garment by a manufacturer, and labor required in sewing such labels on the garments a part of direct cost?
Answer: Labels constituting a permanent part of the garment, such as union labels and brand names, are included in direct cost. Labor of sewing in such labels is also included. Pin or string tags and labels, such as size or wool content labels, are usually removed after purchase, and therefore, are not included in direct cost.
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Week-work chart. Section 30(a)(14) and (15) provides a method for estimating only cost of week-work labor- Hence, cost of materials or trimmings, or cost of piece wo He labor may not be estimated in that manner.
Week-work chart - overtime or wage increase granted after July 1, 1942.
Question: Does the manufacturer use the figures appearing on his payroll records al-bbough he has paid wage increases after July 1, 1942, or overtime, or both, when he checks his estimâtes of week-work labor costs at the end of his selected accounting period?
Answer: No. Wage rates used to check estimates of week-work labor costs made on the week-work charge are the same wage rates used for all other purposes under the Regulation. That is, the manufacturer may not consider overtime or wage increases granted after July 1, 1942 when he determines his compliance at the end of his selected accounting period by checking his estimates of week-work labor cost against actual direct labor cost.
Purchaser of same general class. A manufacturer customarily sells at $10.75 less 8/10 Ë.O.M. to small retailers, at $10.50 leas 8/10 E.O.M. to large retailers, and at $10.25 less 8/10 E.O.M. to chain stores and mail order houses. The maximum prioe for a new purchaser who is a chain store and who is prepared to treat the manufacturer as a regular resource is $10.25 less 8/10 E.O.M. A new purchaser may not be deprived of price differentials and other allowances customarily granted to similar purchasers. The manufacturer must fit the new purchaser into the appropriate class among the different classes of purchasers. However, if the new chain store purchaser only seeks to purchase fill-in« in the volume usually purchased by a small retailer, the manufacturer may sell to him at $10.75 less 8/10 E.O.M., the customary price to small retailers.
Selling price line.
Question: A manufacturer’s highest selling prioe line for women's, misses' and Juniors ^coats under the Regulation is $39.75. Hs now wishes to sell these ooats with fur linings. May he bill the fur-lined ooats at $39.75, and charge separately for the linings under the provisions of the General Maximum Price Regulation?
Answer : No. Manufacturers cannot evade the limitations on their highest selling price lines by selling linings, collars, or trimmings separately. If a fur lining is billed separately, the price of the lining plus the price of the coat must not exceed the manufacturer’s highest selling price line for the particular category number. If a shipment of linings is billed separately from a shipment of coats, the price of the most expensive lining, plus the price of the most expensive coat, must not exceed the manufacturer’s highest selling price line for each category number involved.
Manufacturers who have not received acknowledgment of the filing of their pricing charts. Seclion 1£, limiting ike maximum allowable margin of manufacturers who have not received acknowledgment of the filing of their pricing charts, applies only to garments which must be priced under the Regulation. Henoe, sales of garments which may be priced under the General Maximum Prioe Regulation pursuant to Section 22(e)(1) are not within the limitation specified in Section 13.
Fall pricing chart - use of illegal price as basis for higher fall selling price line.
Question: During the period between July 1 and November 1, 1942, a manufacturer delivered various garments then covered by Regulation No. 153, as amended (Women’s, Girls* and Children’s Outerwear Garments) at prices in excess of the maximum prices for those garments under that Regulation. May he include these prices in his fall pricing chart?
Answer: No. Prices illegal under Regulation No. 153, as amended, may not be used as the basis for fall selling price lines. The same is true of illegal prices received in the
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fall of 1942 or the spring of 1943 for garments then under the General Maximum Price Regulation.
New business » authorization to establish maximum prices. A manufacturer who previously operated only as a custom tailor or as a manufacturing retailer may apply for authorization to establish maximum prices under Section 12 since he was not a "manufacturer” who was in business prior to June 29, 1943.
A manufacturer who owns two unincorporated businesses operated them separately. One customarily made sales to retailers. The other made sales as a custom tailor, but now wishes to sell to retailers. The manufacturer may not apply for authorization to establish maximum prices to retailers for the second business, since the manufacturer was selling to retailers prior to June 29, 1943.
Transfer of business - partnership. A, B and C were partners in the X manufacturing company. X filed a Pricing Chart which was subsequently approved. Later X paid off its creditors; B and C obtained the return of their capital contribution, took their interests in the surplus; the machinery and plant equipment was divided among A, B and C. A continues to operate as sole owner. B and C organize the Y company to manufacture the same categories of garments and to sell to the same accounts as X did and A now does. Y is not the operator of a new business, and therefore, may not apply for authorization to establish prices under Section 12. Y is a transferee of a "substantial" part of a business within the meaning of Section 18, and determines its maximum prices under that section.
Cost of materials - rayon shrinkage. Section 30(a)(8)(v), permitting the manufacturer to take into account losses due to shrinkage in determining net cost of materials, applies only where the manufacturer uses woolen materials. The section does not apply where the manufacturer uses rayon materials.
Cost of materials - redyeing. Woolen fabric purchased for the manufacture of ladies’ suits are found to be stained and streaked to such a degree that the cloth cannot be used unie«« it is redyed. The manufacturer’s cost of redyeing the fabric may not be taken into account in calculating net cost of materials under the Regulation since the original cost of the material already included the cost of dyeing.
Net cost of materials - discounts. In calculating' "net cost of materials" under Section wnwnr the manufacturer must deduct available trade and cash discounts whether or not he actually takes them. However, available anticipation discounts need not be deducted unless actually taken.
Manufacturer and manufacturing-retailer. A company operates an apparel factory supplying its trade-marked dresses under a consignment agreement to independantly owned retail stores. These stores sell the dresses to ultimate consumers. Under the consignment agreement title never vests in the retail stores but passes directly from the company to the ultimate consumer. The retail stores are obligated to carry full insurance and to bear the risks of loss by fire or damage. The retailer owns or leases the store, hires his own employees, pays their salaries and assumes all expenses in connection with the actual operation of the store except that the company supplies the store with window backgrounds and signs and other similar articles. Substantially all risks in connection with the operation of the store are borne by the store except that unsold garments may be returned to the company. The company’s price to the retail stores is the retail selling price less a fixed percentage (30%). For purposes of the Regulation, sales by the company are sales by a manufacturer to retail stores and not sales by a manufacturing-retailer to ultimate consumers. Sales by the
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stores to the consumers are sales at retail and not as selling agents for the company, because even though title does not vest in the retail stores under the consignment agreement, substantial risks irf the transaction, including credit risks, are borne by the retail store.
Manufacturer's cost of materials - differences in cost due to different pigmentation. A manufacturer purchased a large quantity of cotton piece goods of the same construction and the same pattern. However, because of the presence of slightly different pigmentation in sone of the goods, there were slight differences in cost as indicated in each invoice, such as .1865, .18142 and .18369 per yard. Under Section 30(a)(8)(iv), the cost of materials used in a single cutting may be averaged although each lot of material may have been purchased at a different cost. Therefore, the manufacturer calculates the net cost per yard of this material by calculating the actual cost of the materials which go into the production of his garments on each cutting.
Manufacturer's cost of materials - woolen shrinkage. In determining the net cost per yard of his materials, a manufacturer is permitted to "take"into account losses due to shrinkage of the woolens, Section 30(a)(8)(v). For example, a manufacturer purchases a piece of woolen fabric 50 yards in length at a cost of $1.00 per yard and sends it to a sponger to be shrunk and examined. If he uses the entire lot in a single cutting, the total number of yards used may be calculated at 50 yards although when it comes back from the examiner, it contains only 48 yards. However, if the entire lot is not used in a single cutting, the manufacturer should calculate the cost of his piece goods as follows: He should first determine the actual yardage lost and this yardage should be subtracted from the total yardage purchased. The difference should be divided into the purchase price and the result is the net cost per yard. Thus, if this 50 yard-lot was purchased for $50, and if 2 yards were lost in shrinkage, the net cost per yard for the purpose of the manufacturers* cost records is $50 divided by 48, or $1.04. Records must be kept of the yardage lost in shrinking.
Total cost of materials. Under Section 30(a)(8)(i) where the seller's net cost of materials exceeds his customary supplier's maximum price of the same materials at the time of cutting, the seller must use the customary supplier’s maximum price in calculating his total cost of materials except in the following cases:
(a) If it is impossible for the seller to get woolens from the customary source of supply (mill or converter), the seller may purchase from another mill or converter and use the new net cost, provided that it does not exceed the new supplier's maximum price. The seller may not use the price paid to a jobber unless it is lower than the maximum price of his custofnary source of supply.
(b) If the seller customarily purchased from a jobber, and it is impossible to get goods from him or from a mill or converter, he may purchase from another jobber and use the new net cost, provided that it does not exceed the new jobber's maximum price.
Increased labor costs - "unconditional" increases. See page 1:5 (Substitute July 1, 1942 for April 27, 1942).
Selling price line. A manufacturer cut a style of garments in sample form in October 1941 and offered It to his general trade at $3.75. One week later the offering price was dropped to $3.50. However, the garment was not put into production to fill orders until January 1942. when it was still being offered to the general trade at $3.50. In March 1942, the manufacturer accepted orders and made deliveries at $3.00. Under the Regulation, the manufacturer's selling price line for this style is $3.50 since that is the price at which the style was offered to the general trade on the occasion of the first cutting. The offering of a style of the general trade from a preliminary sketch or from individual samples does not establish selling price lines.
During March, a manufacturer delivered a style of .garment at $19.75. At the time of the first cutting, he offered this style to the general trade at $16.75; he did not deliver any garments at $16.75 during March. The manufacturer's selling price line is $16.75, since that was the price of the garment when first offered for sale to the general trade on the occasion of its first cutting. He may, however, under Sections 3 and 6, include a selling price of $19.75 on his spring pricing chart.
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Selling price line -discount« and allowances. Section 7 provides in part, that "««Hing prices which differ from the prices customarily established for the general trade, because of discounts, allowances, or price differentials for different classes of purchases, do not constitute selling price lines". The following are illustrations of the application of this section:
(a) A manufacturer delivered women’s coats in sizes 37-43 at $10.73 in March 1942, and in sizes 44-50 at $11.75 prior and subsequent to March 1942. The wnuf naturer has only one price line. If the purchasers of the smaller sizes constitute his "general trade", his price line is $10.75. If the purchasers of the larger sizes constitute his "general trade", his price line is $11.75. However, the dollar differential established for the two classes of purchasers may be continued.
(b) A manufacturer delivered misses' and junior misses* coats at $10.75 during March 1942, and it was his practice to deliver outsizes at $10,75 plus 10%. He made no delivery during March 1942. The manufacturer's price line is $10.75, but he may continue the differential of 10% established for purchasers of the outsizes.
Selling price line - discounts and differentials - customary business practice.
Question: A manufacturer generally sells garments to retailers, at $3.75 and $4.75 with 8%~terms. He also made some sales to wholesalers at the same price less 15%. How many price lines does the manufacturer have?
Answer: Two, and not four price lines. Discounts, allowances and trade differentials established for different classes of purchasers must be continued, but they do not establish separate selling price lines, see Section 7. The manufacturer may continue to sell to wholesalers at $3.75 and $4.75, provided that he gives the 15% discount.
Question: A manufacturer generally sells to wholesalers at $3.00 and $4.00 net. He has also* made some sales to retailers at $3.75 and $4.75 with 8% terms. How many price lines does he have?
Answer: Two, and not four price lines. The price lines should be reported as "$3.00 net" and "$4.00 net". The 75/ differential for retailers may be continued, however, provided that the 8% terms are allowed.
Question: A manufacturer's customary discount on sales occasionally mads to wholesalers is 15%. During March, he did not sell any garments to wholesalers. Must the manufacturer oontine the 15% differentials?
Answer: Yes. The determination of discounts, allowances and trade differentials ¿bpends upon the manufacturer's customary business practice, regardless of unusual circumstances during March 1942. "Customary business practice* refers to an extended period, both before and after March 1942.
Question: A manufacturer customarily charged an additional 50/ when a buyer ordered larger size garments. In one particular price line, however, he never sold any larger size ganaents. May the manufacturer charge 50/ more for larger sizes in that line now?
Answer: Yes. Here again the manufacturer refers to his customary business practice.
Selling price line for different categories. During March 1942, a manufacturer delivered a two piece skirt and skirt ooribination for $8.75 per unit. After March the item was offered as a mix-match item to be sold either as a unit for $8.50, or as a separate pieces for $4.25 each. However, during March the garment was offered separately and also as a unit. If the manufacturer actually delivered both the unit and the separate pieces during March 1942, he has established selling price lines for three different categories, namely an $8.75 dress, a $4.25 skirt, and a $4.25 blouse. If the separate pieces were not sold until after March 1942, selling price lines have not been established for the blouses or for the skirts.
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Posting of selling price lines in showroom. Seotion 16 requires each manufacturer to post his selling price lines in his showroom. Where a number of manufacturers hold a joint showing in a hotel from which orders are taken for the styles shown, each manufacturer must post in the hotel showroom his highest price lines for each category number.
Cost of materials - averaging costs. The costs of all materials used on single cutting may be averaged, regardless of differences in cost and time of purchase. However, the costs of garments or materials in different cuttings may not be averaged.
Direct labor cost - floor girls* wages.
Question: A manufacturer pays floor girls by the week to distribute work in the sewing room. These employees spend part of their time in turning collars and sleeves and cutting tapes used in waistlines of dresses (ordinarily a direct labor operation). May any part of the wages of these floor girls be included in direct labor cost under Sootion 30(a)(10)7
Answer: Yes. The portion of their weekly wages which represents time spent in direct labor operations may be included in direct labor cost.
Classifications
Dresses. A two-piece garment consisting of a one-piece dress made of sheer material and a full slip which must be worn with the drees is classified as a "dress", see Section 27(e).
Chubby girl dresses, sises 6^ to 16^. Chubby girl drosses sixes 6^ to 16^, if made by adjusting girls* else patterns, are included in category 24 (Girls’* dresses); if made by adjusting teen age patterns, they are included in category 23 ("Teen ago" dresses).
Bridal gowns. Bridal gowns are olaaeifiod as "dresses" under the Regulation.
Category of garment - coats.
Question: May a fur trimmed garment, under 30 inches in length and manufactured to be part of an ensemble be priced as a coat 7
Answer: No. Garments under 30 inches in length are not considered coats under NFS Order L-85, and therefore are not coats either under Regulation No. 287 or under Regulation No. 350 (Retailers* and Wholesalers* Prices for Women’s, Girls* and Children’s Outerwear Garments).
Coat made of cloth and fur. A fur-lined coat is covered by Regulation No. 287 and not Regulation Mo. 178 (Women^s Fur Garments). Similarly, a reversible ooat made wholly of fur on one side and wholly of doth on the other, and which may be worn with either the fur side out or the cloth side out, is classified as a "ooat" under Regulation No. 287, and not as a fur garment under Regulation No. 178. Regulation No. 178 covers only garments that can be worn only with the fur side out.
Dresses. A two pieoe garment consisting of a blouse and skirt made of matching fabric and sold at a unit price is a dross and falls within Category No. 21, Seotion 27(e), since it is commonly known as a dress and is sold at retail in dress departments.
Violations and Evasions
Purchase of business, etc., to secure higher selling pride lines. Manufacturer X, who by his Pricing Chart is limited to a $3.75 selling price line for dresses, wishes to buy an interest in corporation Y, which may make dresses for $7.75. SinoeSection 18(b) prohibits the purchase of a business, assets, etc. for the purpose of obtaining higher selling prices, X must show that the purchase is made in good faith. A purchase by X of more than 50% of the stock of Y would raise a rebuttable presumption that it was made to obtain higher selling prices. However, this presumption would be weaker if the purchase was made for less
600780 0 - 44 -5
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than 50% of ï’s stock.
Records and Reports
Cutting ticket. The ’’piece-goods number of the materials used” is the mill’s identification number of each piece of goods used and does not refer to the pattern or style of the material.
Direct labor cost - breakdown by crafts. A manufacturer who uses the suggested cost record form contained in Section 30(c) must break down his direct labor cost by crafts as indicated on the form. A manufacturer who elects to use his customary form in place of the suggested form, pursuant to the option provided in the Section, must also show a similar craft breakdown of labor cost.
Pricing charts. A manufacturer who is authorized to establish maximum prices under an order issued by OPA pursuant to Rule 6 of Maximum Price Regulation No. 287 or Section 12(a), (b) or (d) of Revised Maximum Price Regulation No. 287 is not required to file any pricing charts. Pricing charts need be filed only when they are based on a seller’s base period experience.
Maximum Price Regulation No. 304
SPECIFIED UTILITY SHIRTS
Applicability
”Leisure shirt” or ’’leisure jacket”. A shirt made of cotton flannel with a breast pocket and two lower pockets, sometimes called a ’’leisure shirt” or "leisure jacket", is a shirt covered by Regulation No. 304, not a jacket covered by the General Maximum Price Regulation. However, the garment is not an "in-and-outer shirt" within the meaning of Section 15(b)(2) since it is designed to be worn only outside the pants. Since no specific prices are set forth in the Regulation for this type of shirt, the manufacturer must apply for a price under Section 5(b)(4) and 5(c).
Carry-over stock. The phrase "carry-over stock" in Section 4(e) refers only to men's in-and-outer shirts and other shirts made with certain features set forth in that paragraph. These shirts, if made before January 25, 1943 and delivered before October 1, 1943, may be sold by the manufacturer at the maximum price established under Section 3.5 of Revised Supplementary Regulation 14 to the General Maximum Price Regulation. On and after October 1, 1943, the manufacturer’s maximum price is the RSR 14 price reduced by 10%. When a manufacturer's maximum price is established under this paragraph, the retailer uses that maximum price as his supplier's net ceiling price under Appendix C.
Maximum Price Regulation No. 330
RETAILERS' AND WHOLESALERS' PRICES FOR WOMEN'S, GIRLS’ AND CHILDREN’S OUTERWEAR GARMENTS
Applicability
Girls’ corduroy jackets. Corduroy jackets designed for girls are not covered by Regulation No. 210.' These jackets, except in infants’ sizes, are covered by Regulation No. 330 as to garments delivered to the seller on or after February 24, 1943.
"Boys’" legging sets. See page 1:18.
Fur-trimmed suits. See page 1:18.
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Housecoats are not "dresses". The General Maximum Price Regulation applies.
Jumpers are subject to the Regulation as "dresses," including sleeveless and other types of jumpers worn with a blouse to complete the ensemble.
Second-hand garments. The sale of used women’s outerwear garments by second-hand dealers is subject bo' the Regulation. However, the sale of used or second-hand garments acquired by a seller without cost, e.g., a welfare organisation, is not covered by the Regulation, since the clothing does not have any cost price line.
Dresses for "utility wear." The category "dresses" in Appendix A speoifioally includes ¿resses for ^utility wear." The term "utility wear" includes dresses suitable for general use such as house dresses. It does not include garments worn by women in industrial and professional employment if the garments were designed solely for wear on the job, and are of such a character that they would ordinarily not be purchased for any purpose except to be worn on the job. Hence, uniforms or garments designed for wear on the job by the following occupational users are not covered by the Regulation: waitresses, nurses, maids, war service organization volunteers, beauticians, hospital attendants, elevator operators, usherettes, retail store, office, bank and restaurant employees, launderers, dairy «nd cannery workers, food processors, hotels, industrial plant, and railroad dining oar employees, etc.
Boys’ and children’s garments. See page 1:19
Women’s slips. The sale of women’s slips is not covered by the Regulation; the General Maximum iPrice Regulation applies.
Jodphurs. The sale of men’s riding breeches and women’s and children’s jodphurs is not covered by the Regulation; the General Maximum Price Regulation applies.
Three piece matched sets. A three-piece matched set of toddlers' slacks with attached bib, jacket and cap which is to be sold at a unit price is not covered by the Regulation since three-piece sets do not fall within any of the listed categories; the General Maximum Price Regulation applies. However, it should be noted that WPB Order L-85 forbids the sale of these sets at a unit price if the garments were out after May 27, 1943.
Price Determination
Transfer of establishment. A retailer who moved his store to a different locality after the end of the base period (December 31, 1941) is bound by the price lines and mark-ups established in his former store since the moving of his store does not make him a new or different seller, except that if he purchased the business or stock in trade of another retailer formerly doing business at the new location, he must use the maximum prices of his transferor.
Cost price of garment. An organization controls the styles of garments sold by member retail stores and ac£s as a buying agent for the members, the manufacturers billing and shipping the garments directly to the retailers. Ordinarily, the retailer’s actual cost price plus the style organization’s fees for its services do not exceed the manufacturer’s showroom pride. Fees paid by the member stores to the style organization may not be included in determining the retailer’s cost price of a garment under this Regulation or Regulation No. 178 (Women’s Fur Garments) since the organization does not perform the services of a wholesaler.
"Next lower" cost price line. In pricing under Section 1389.554(d)(2) of Regulation No. 330, a garment of a different category than that delivered by the seller during the base period, the seller must refer to the category having a cost price line which is actually the "next lower" to the cost of the garment being priced, and not to "any" category which merely includes a "next lower" cost price line. Thus, in pricing coats costing $5.00 where there are several categories which have lower cost price line, e.g., jackets costing $3.00 and skirts costing $4.00, the next lewer cost price is that for skirts costing $4.00.
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New lines or where oostprice lines not established. A seller at wholesale who desires to price new line« of garments where the cost to him of the garment being priced does not correspond to the cost price lines of garments of the same category delivered during the base period is governed by Rules 2 and 3, Section 1389.554 of Regulation No. 530. Where a seller at wholesale does not operate with established price lines, the words "cost price lines’* means cost to the seller.
Blouse of three-piece suit. Where a wholesaler or retailer formerly sold women’s three-piece suits" costing up to $195.00 and now proposes to sell separately the blouses of three-piece suits, the wholesaler or retailer may not sell blouses in a price line which is higher than the highest price line at which he delivered separate blouses during the period determining his highest price line limitation.
Cost price line - identical garments purchased at different costs. A maximum price once determined by the retailer or wholesaler under SecHon 1389.8Whf the Regulation does not fix the maximum price on identical garments subsequently purchased at a different cost since the garments are in different cost price lines.
Cost price line - change or addition of trimmings to garment. Where a wholesaler or re-tailer, at Kis customer’s request, changes the trimming or adds trimming to a garment, his cost price line of the garment is determined as follows:
(a) If the new trimming is supplied by the customer, the cost price line is the original cost of the garment less the actual cost, or if actual cost is not known, the estimated cost of the removed trimming.
(b) If the new trimming is supplied by the seller, the cost price is calculated by subtracting the actual cost, or if this is not known, the estimated cost, of the trimming which is removed, from the original cost of the garment, and aciding the cost or the new trimming.
However, the selling price of the garment with the new trimming may not in either case exceed the highest permissible selling price line for garments of the same category.
In the normal case a seller may not increase the cost price line of a garment by changing or adding, trimming except upon request of a customer, since the Regulation forbids any evasive practices which would increase the price above the maximum price.
Most closely competitive seller of the same class. A seller of women’s, girls’ and children’s outerwear" garments" who prices" by reference to the maximum prices of the most closely competitive seller under Rule 5, Section 1389.554(e), selected the X Company as his competitor. The seller also selected the X Company as its most closely competitive seller for pricing women’* fur garments under Regulation No. 178 (Women’s Fur Garments). The seller now wishes to select a dj fferent competitor on the ground that its initial selection was erroneous in that X Company was not, in fact, the most closely competitive seller. The choice of X Company as competitor is revocable only if the seller can prove that the original choice was erroneous. OPA will scrutinise carefully the seller’s reasons for claiming that its original choice was incorrect, as well as his reasons for selecting the proposed competitor. The fact that the seller previously selected X Company as its closest competitor under Regulation No. 178 is not binding on its selection of a competitor under Regulation No. 330.
Computation of cost of each garment purchased in a lot. Where garments are purchased in job lots,' for a lump sum andthe specific costs of each garment or type of garment in the lot is not itemised, the seller may determine the cost of each garment by assigning a price for each garment in the lot, provided that the assigned price is made on a reasonable basis and the total of all the assigned prices does not exceed the total price actually paid for all the garments in the lot. The selected cost for each garment should be entered on the invoice. Where garments delivered during the base period were purchased in job lots, the same method should be followed in ascertaining the cost price of such garments•
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Bid dal gowns» See page 1:25
Closest competitor - importer. Under Section 1389.554(e)(2), Rule 5, a seller who was not in business prior io April V, 1943, establishes his maximum prices by reference to those of his "most closely competitive seller." When an importer’s closest competitor is a non-importing seller, the importer may use as his cost price line the landed, duly-paid cost of the garments being priced, provided that the competitor uses a "freight-included" cost basis under Section 1389.562(g).
Rule 1 - largest number of garments delivered during base period. The phrase "price at whic] you delivered the largest number of such garments,* Bule 1, Section 1389.554(c), means a price at which the largest number of such garments were delivered to the general trade.
Category of garments - coats. See page 1:25
Price-line limitation. The next to the last undesignated paragraph of Appendix A permits the seller to combine pairs of categories in calculating the maximum price for a particular cost price line. However, the categories used will not necessarily have the same highest price line limitation. Thus, if the seller's records show a base period delivery at a higher price line in one category than the other, then each category has a different "highest price" line limitation.
Highest price line limitation - sale on "special order" during the base period.
Question: Is a sale of a garment on special order sufficient to establish a highest price line under Regulation No. 330?
Answer: Yes. Sales on "special order" are virtually impossible to distinguish from ordinary sales by inspection of records. A special order sale usually involves a purchase of the garment at the customer's request; if the customer rejects the garment it is placed in stock and offered to other customers. However, where the sale is not to the general trade, (e.g. sale by wholesaler to an ultimate consumer) it does not establish a highest price line limitation for sales to the general trade.
Sale through more than one department - separate sellers. A seller has several women's dress departments in one store. These dress departments’ are contiguously located but they are separately identified by a department number or name, and each of the departments deals in a different range of price lines, employs a separate buyer, and maintains a separate accounting system. Each department must be regarded as a separate seller with its own highest price line limitation, see Section 1389.554(f).
Transfer of business. A corporation which operated a chain of 14 apparel shops sold 12 of the stores to a newly formed partnership consisting of stockholders of the corporation. The stores continue to deal in the same type of commodities and at the same locations and under the same trade name. The corporation retained some assets belonging to the stores. Under Section 1499.5 of the General Maximum Price Regulation, incorporated into Regulation No. 330, the partnership is a transferee of the corporation since a substantial portion of the assets were transferred to it, and is bound by the maximum prices of the corporation for each of the 12 stores.
Transfer of leased department. During the base period C operated a leased department in the basement of B*s large 'department store, selling garments subject to the Regulation. A, during the same period, operated a leased millinery department in the same basement. On January 2, 1943, A purchased C's business, including C's entire stock-in-trade, and has continued the department. Section 1389.559(a)(2) controls, and A must price on the basis of C's base period mark-ups and C's highest price line limitations. Section 1389.554(f)(1) provides that each separate department of a selling establishment shall be considered a separate seller.
Reopening of discontinued leased department.
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Question: During the base period a basement seller leased the women’s outerwear department. The lessee discontinued operation, and the lessor now wishes to open the women's outerwear department. The lessor is not a transferee of the lessee. How does the lessor price under Regulation No. 330?
Answer: The lessor prices under Section 1389.554(f)(3). Rule 5 does not apply unless no other department in the basement sold the same category numbers during the base period. In such case a competitive basement seller must be found.
Classification
Chubby girl dresses, sises 6^ to 16^. See page 1:25
Costume suit. A costume suit consisting of a dress and jacket may not be classified under ^suits’*. Tach piece in the suit must be placed in its appropriate category, i.e», "dresses" and "separate jackets," and priced accordingly. Under Limitation Order L-85 of the War Production Board, such a costume suit may not be sold at a unit price after the effective date of that order in April of 1942.
Violations and Evasions
Selling price line-new department. Under Section 1389.554(f)(3) a separate department established after April 7, 1943 by a selling establishment which was in business prior to that date may use the highest price line limitation of any other department in the establishment. However, this provision does not permit the establishment of a new department in order to evade the highest price line provisions of the Regulation.
Merger of departments. A local department store has three dress departments, none of which áre basement departments. Department 29, which sells women's dresses in a range of $5.47 to $29.95 and Department SO, which sells misses' dresses in a range from $5.47 to $69.95 are adjacent. Department 23, known as "Budget Dresses" sells women's and misses' dresses in a range from $3.99 to $10.95. It is proposed to move the stock of Department 29 adjacent to Department 23, limiting the price lines of that stock to a range of $8.95 to $15• 00 and to drop the identity of Department 29 entirely so that thenceforth the remaining department will be known as Department 23 "Inexpensive Dress Shop". While Department 29 may be moved next to Department 23, the departments may not be consolidated so that the resulting Department 23 would have selling price lines higher than those previously permitted to Department 23.
Definitions
Pinafores, to be included within the category "dresses," must be sleeveless garments, out high enough at the neck and armholes so that they may be worn with or without a dress or blouse. If the pinafore is not so constructed, it is an apron covered by the General Maximum frice Regulation.
Records and Reports
Pricing chart - chain store. Each retail outlet of a chain as well as each separate department of a selling establishment must prepare and keep a separate pricing chart, unless a central pricing order issued under Section 1499*4.a of the General Maximum frice Regulation or Supplementary Order No. 13 (Retail Sellers Operating More Than One Establishment) relieves such outlets of this requirement.
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Maximum Price Regulation No. 332
SIMPLIFIED MEN’S AND BOYS’ SHIRTS AND PAJAMAS
Price Determination
Rule 1 - purchaser of same class. Under Section 1389.502(a) the manufacturer's maximum price for a simplified garment is based on the "present maximum price" of the comparable uns amplified garment. The term "present maximum price" refers to the maximum price to purchasers of the same class. Thus, a manufacturer who formerly sold only to one class of purchaser cannot establish his maximum prices under this section for a different class of purchasers but must refer to Section 1389.504(a).
Rule 1.
Question: Do shirts differing only in their being white, solid colors, or fancies constitute different styles?
Answer: They may be considered one style or more than one style, in accordance with bhe established practice of the manufacturer.
Question: Where shirts in the same price line include whites, solid colors and fancies, how aresavings averaged?
Answer: If these shirts are considered two or more styles, the average savings are determined by the method given in Section 1389.502(a)(2). If the shirts constitute only one style, the average may be determined by the same method, or by the reference to a fair estimate of current production, or on any other reasonable basis.
Question: Must each fancy pattern in a style be compared to a 1942 or other pattern and weighted in calculating the average?
Answer: No. Savings on different fancy patterns within the same style may be averaged by taking the average cloth cost for all the patterns in current production, and multiplying by the amount of cloth saved.
Question: A manufacturer has a price line of which 50% is made of fine combed-yarn cotton goods and 50% is made of other goods. Simplification savings on fine cotton goods are 45/, on other goods 40/. Due to the increase in replacement cost of fine cotton goods, the manufacturer has an offset of 50/ in accordance with Section 1389.502(a)(3)(iii). Can the 50/ offset be applied against savings on both fine and other goods or only against savings on fine goods?
Answer: The 50/ offset can be applied only against the 45/ savings on fine goods. Thus, there would be no savings on fine goods. But savings on other goods would remain 40/. Therefore, the average savings on the entire line, in this example, would be 20/.
Rule 2 - permanency of maximum price. When a wholesaler or retailer determines his maximum price for a simplified garment under Rule 2, Section 1389.503, he may not subsequently increase the maximum price so determined, even though his cost is now higher than the cost at the time he determined his maximum price.
Rule 1 - increase in cost. Section 1389.502(a)(3)(iii) permits a manufacturer to offset increases in replacement cost of fine combed-yarn cotton goods during the stated period, against the savings which result from the curtailments and restrictions of the simplified garment. This section applies only to a manufacturer who actually paid such increases; it does not apply to increases in replacement cost of inventory.
Replacement cost - discounts and advertising allowance. See page 1:11.
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Same or similar garment. A simplified garment may be the "same" as or "similar" to another simplified garment, even though one is imported and the other is domestically produced. The tests for determining "sameness" or "similarity" are the same as those used under the General Maximum Price Regulation.
Violations and Evasions
Customary discounts, allowances and price differentials. Sellers of men's and boys' shirts and pajamas covered by the Regulation must continue granting their customary discounts, trade allowances, and other price differentials.
Maximum Price Regulation No, 339
WOMEN'S RAYON HOSIERY
Price Determination
Sale by chain and mail order house.
Question: If a "chain store" or a "mail order house” buys full fashioned hosiery which carries a brand name or buys full fashioned rayon hosiery from a wholesaler, may it use the ceilings in colume (g) of Table 1?
Answer; A "chain store" or "mail order house" (as defined in the R gulation) may never use the ceilings in column (g) of Table 1. The ceiling prices for all sales of full fashioned rayon hosiery by "chain stores" and "mail order houses" are specified in column (e) of Table 1.
Branded percentage - export sales. Export deliveries must be included «in figuring "branded percentage" under Section 3(c).Total current deliveries from which "branded percentage" is applied, must also include export deliveries.
Marking branded hosiery.
Question: A manufacturer whose hosiery is qualified as branded under Section 3(b) has delivered hosiery during a calendar-quarter year as "branded" ceilings to the full limit of his "branded percentage." Accordingly, under Section 3(c) his ceiling for all deliveries of full fashioned hosiery during the remainder of the same quarter-year is the ceiling price for unbranded hosiery. In making deliveries of his hosiery during the remainder of the quarter at unbranded ceiling prices, may the manufacturer sell under his brand name? May he mark the letter "T" on the hosiery pursuant to Section 5(a)(1)?
Answer: He may, if he desires, sell under his brand name but he may not use the letter "T" to precede the retail maximum price in marking the hosiery. Under Section 5(a)(1), the letter "T" is used only where the hosiery meets the definition of "branded" as stated in the Regulation and the hosiery is permitted to be sold at branded ceiling prices. In this case the hosiery in question is not permitted to be sold as "branded" ceiling prices because the manufacturer'.has delivered to the full limit of his "brand-ed percentage."
Marking proportioned hosiery. Section 5(a)(3) requires that the word "proportioned" appear in all proportioned hosiery. A manufacturer is not forbidden to use any other marking, to indieatespecial fit, provided that he also uses the marking "proportioned".
Wholesaler who also converts rayon hosiery.
Question: A wholesaler of rayon hosiery also converts rayon hosiery. Should he use
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manufacturers’ prices or wholesalers' maximum prices for the converted hosiery?
Answer: If the sales qualify as sales at wholesale, wholesalers* maximum prices apply regardless of whether the wholesaler bought the goods in the greige or in a finished state.
Returned goods. A seller of rayon hosiery sold and priced such hosiery under the provisions oi the General Maximum Price Regulation, prior to the effective date of Regulation No. 339. The purchaser now wishes to return the hosiery. The seller may credit the purchaser with the full original selling price even though such price exceeds the present maximum price for the hosiery under Regulation No. 339. The transaction is a "return” or rescission and not a sale or delivery subject to the Regulation.
"Reclaims." The maximum prices in Appendices A and B apply to reclaimed rayon hosiery. In marking the hosiery, it is not necessary to identify the hosiery as "reclaimed."
Sale to exporter. Sales to exporters are priced under the provisions of the Regulation. However, the allowable additions set forth in Section 2 of the Second Revised Maximum Export Price Regulation may be added to the maximum prices.
Definitions
Drop shipment. A drop shipment is a shipment made otherwise than from the wholesaler's own slock kept oh hand for the purpose, i.e., a shipment other than from his stockroom or warehouse. Where a New York wholesaler purchased women's rayon hosiery in the greige from a North Carolina mill and had such hosiery sent to his dyer in Philadelphia, shipments directly from the dyer to the wholesaler's customers were regarded as drop shipments under the Regulation.
Branded hosiery - advertised trade name or trademark.
Question: If a manufacturer did not advertise a trade name or trademark in the consumer press during either 1941 or 1942 but advertised such name or trademark by the use of window displays, display cards, electric or other store signs, would this fora of advertising satisfy the requirements of Section 3(b)(2)?
Answer: No. Advertising matter displayed in and about the store designed to bring the customer into the store from the street is not sufficient. As an illustration of what is meant by the words "advertising directed to the ultimate consumer other than by advertising matter accompanying the hosiery itself" there may be cited such media as radio, newspaper advertising, direct mail advertising and public distribution of brochure and circulars. Such advertising, however, must be paid for in whole or in part by the manufacturer.
Branded hosiery - delivery to wholesalers. One of the requirements for meeting the definition of branded hosiery" under ¡Section 3(b) is that the manufacturer must have delivered the hosiery to retail establishments. Therefore, if the hosiery meets all the requirements set forth in the section except that it was delivered to wholesalers instead of retailers, the hosiery cannot qualify as "branded hosiery".
"Manufacturer” - assembling hosiery. A seller of cut and sewn hosiery buys the leg, feet and wells separately, and then assembles or puts them together. ’ The seller is a "manufacturer” within the meaning of Section 2(c) since he is a person who "assembles rayon hosiery.”
Records and Reports
Branded hosiery - filing of report.
Question: Will OPA, on its own initiative, advise each manufacturer who has filed the branded hosiery report required by Section 3(d) whether or not and to what extent his hosiery qualifies as ”branded” hosiery under the Regulation?
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Answer: No. It is the obligation of each manufacturer to correctly determine whether his hosiery qualifies as "branded” under the definition set forth in Section 3(b). The filing of the report does not relieve him of liability if the hosiery which he sells does not qualify as "branded.” Any manufacturer who desires may submit the full facts of his case to OPA and specifically request an official interpretation as to whether his hosiery qualifies under the Regulation as "branded”.
Correcting incorrectly marked hosiery. A retailer purchases hosiery with a price marking higher than that specified In the Regulation for his type of sale and wishes to correct the marking in accordance with the requirements of Section 5(b). However, it is both impracticable and costly to obliterate the incorrect price or to remove the old tag and replace it with a corrected label. The retailer satisfies the requirements of this section if he attaches a hew tag or label which clearly indicates that it supersedes the old marking. Thus, a ticket reading "Corrected ceiling -" followed by the corrected price is sufficient even though the incorrect price still remains visible.
Maximum Price Regulation No. 385
SPECIFIED MILITARY UNIFORMS
Applicability
Uniform manufactured to order. The sale by a tailor of a uniform which he has manufactured to order and sold directly to a United States military officer is not covered by the Regulation since the Regulation applies only to ready-made uniforms.
Price Determination
Net invoice cost. Under Section 2(a) "net invoice cost" means "the price on the face of the invoice, less all discounts available to the retailer, but not including transportation costs". Hence, transportation costs are not included in the base price upon which the retailer figures his markup.
Charges for furnishing regulation buttons. The maximum prices do not include charges for furnishing regulation metal buttons (i.e., buttons with insignia) on military uniforms, except in the case of "Palm Beach" uniforms. Therefore, manufacturers of military uniforms other than "Palm Beach" uniforms may make an additional charge for supplying such buttons pursuant to the provisions of Regulation No. 188 (Manufacturers’ Maximum Prices for Specified Building Materials and Consumer’s Goods Other Than Apparel); wholesalers and retailers may make the additional charge pursuant to the provisions of the General Maximum Price Regulation.
Maximum Price Regulation No. 438
MANUFACTURERS • PRICES FOR CERTAIN FALL AND WINTER OUTERWEAR
Price Determination
Class 1 purchaser - chain store, mail order house.
Question: A manufacturer sold to chain stores but did not sell to wholesalers in 1942. May the chain stores be considered Class 1 purchasers? Class 1 purchasers are defined in Section 4 as "those who customarily bought at or below the price to wholesalers."
Answer: Yes. If the price customarily paid by the chain stores was competitive with the price customarily paid by wholesalers to other manufacturers ( who made sales to whole-
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saler in 1942), the chain stores may be classified as Class 1 purchasers.
Question: Is a mail order store a Class 1 purchaser?
Answer: A mail order store is a Class 1 purchaser if in 1942 it customarily bought at a price which was at or below a particular seller’s price to wholesalers or which was competitive with other sellers' prices to wholesalers.
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BUILDING MATERIALS
Price Schedule No. 40
BUILDERS* HARDWARE AND INSECT SCREEN CLOTH
Applicability
General. The Schedule is applicable to the seller of builders' hardware in insect screen cloth to the extent that he sells the articles listed in Appendix A with these two exceptions:
(a) Contract sales of builders' hardware are subject to Regulation No. 261 (Contract Sales of Finishing Builders' Hardware); and
(b) Door locks and lock sets are subject to Regulation Nd. 317 (Locks and Lock Sets).
Metal content. The Schedule is not limited to articles of copper content; it is applicable regardless of the metal content.
Completed products. Where screen cloth and hardware are sold only as a part of coupleted products, e.g.,doors, roller screens, Venetian blinds, casement windows, etc., the screen cloth and hardware are not covered by the Schedule •
Locks. The enumeration of the types of lodes subject to the Schedule is qualified by the enumeration of the kinds of doors for which such locks are used. Since the Schedule does not include locker doors specifically, certain combination padlocks and built-in locks for locker doors are not subject to the Schedule unless they are suitable for use in the types of doors listed. Regulation No. 317 (Locks and Lock Sets), now covers door mortise locks and lock sets, and tubular and cylindrical locks and lock sets. Padlocks remain subject to the Schedule. In view of the qualifications indicated, a seller should request an interpretation from OPA before selling padlocks if any doubt exists as to the price regulation explicable to the sale.
Price Determination
Special sale in base period. Where a sale of an eurticle to a particular customer during the base period was made at an unusually low price as a special concession, and no other sale of the same item was made during the base period to the same customer, the "concession" price is the iwarimm price in a sale to that particular customer of the same or substantially the same article.
Increased freight rates. The Schedule establishes maximum prices for builders' hardware products upon the basis of a delivery during the base period, October 1-15, 1941. In all cases of delivered prices the increased freight rate must be absorbed by the seller. However, if the seller's sales were on an f.o.b. basis during the base period, the Schedule does not compel the absorption of the increased freight rates.
Classi flcation
Glass push plates are Included within the classification of "push and kick plates".
Definit ions
Retailer. A retailer is a person who maintains an establishment in which 75% of the dollar volume of sales of all products during the six months preceding the effective date of the Schedule consisted of sales without discount (except cash discount) from the said person's regular retell price. The 75% sales provision means 75% of sales of all hardware products. Thus, If a hardware store sold 75% of all its products, such as wash tubs and flashlights, at retail prices, but sold all its builders' hardware at wholesale prices, the store would still be a "retailer" and hence exempt from the Schedule.
2.1
Price Schedule No. 45
ASPHALT OR TARRED ROOFING PRODUCTS
Applicability
General. The Schedule is applicable to sales of asphalt or tarred roofing products by manufacturers , and purchases by any person. Where, however, the manufacturer also performs the service of applying the materials to the building in consideration of the total price paid by the purchaser it is an "applied sale" and is not subject to the Schedule.
Liquid asphalt. The Schedule is not applicable to the sale of liquid asphalt.
Materials not used for exterior purposes. The Schedule covers the sale of asphalt roofing, shingles and siding materials, whether or not they are used for exterior purposes.
Price Determination
Blue roofing products. The maximum prices for blue roofing products, such as blue shingles and blue slate rolls, are established by paragraph (f) of Sections 1346.63 and 1346.64 which deal with non-standard asphalt and tarred roofing products, rather than by paragraph (d) of Sections 1346.63 and 1346.64 which establish maximum prices for standard items.
Charge for containers. A charge for containers or any other packaging in addition to the maximum prices is not permitted.
Seconds. The maximum prices for seconds of standard items are established by paragraph (f) of Sections 1346.63 and 1346.64 which deal with non-standard asphalt and tarred roofing products, rather than the paragraphs which establish prices for standard items.
Discontinuance of customary supply of fixtures with roofing asphalt. Where a manufacturer has established a maximum price for a combination of asphalt roofing and fixtures, but made a customary allowance for sales of the product without the fixtures, and now discontinues the sale of part of the fixtures because of a shortage of the material, he determines the max 1mm price of the new combination under Schedule No. 45, rather than Regulation No. 188 (Manufacturers • Maximum Prices for Specified Building Materials and Consumers* Goods other than Apparel). The maximum price for the product with all the fixtures must be reduced to compensate the purchaser for the value of the reduced service of supplying less than the complete pack of fixtures. This reduction may be made by applying the ratio of the cost of the articles in the pack of fixtures to allowances made for the pack, and deducting that proportionate amount for thé articles excluded from the pack. Thus, where the established allowance for the fixtures consisting of cement and nails was 10 cents, the seller must first determine the costs of the cement and nails and apply that ratio of costs to the 10-oent differential. The amount thus allocated for the nails is deducted from the established maximum price of the product and fixtures.
Taxes
Illinois Retailer*s occupation tax may be added, when the tax is applicable, as a charge to the buyer over and above the maximum prices •
Violations and Evasions.
Quoting prices. In quoting prices the manufacturer must clearly and distinctly offer in his price list the 5% discount on carload and the 6% and 5% discounts on less than carload prices required by the Schedule for the "Eastern area". A failure to show these discounts is a violation of Section 1364.63(e).
Records and Reports
Transportation charges must be shown as a separate item on invoices in the manner set forth in the Schedule, despite the fact that the seller delivers in his own motor equipment.
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Price Schedule No. 96
DOMESTIC FOEL OIL STORAGE TANKS
Applicability
Tanks of less than 185 gallon capacity. The Schedule does not apply to the sale of domestic fuel oil storage tanks with a capacity of less than 185 gallons; the General Maximum Price Regulation applies.
"Open tanks and vessels (metal)", etc. See page 16:22.
Retailer. The definition of the term "person" in Section 1330.108(a) merely lists various types of sellers covered by the Schedule, but does not necessarily exclude other types of sellers that come within the definition, e.g., retailers.
Price Determination
General. The Schedule establishes dollar-and-cents maximum prices for deliveries in three areas:
(a) Eastern area
(b) Midwestern area
(c) Pacific Coast area.
"Nominal tank capacity." Since the Schedule establishes maximum prices according to nominal tank capacity in gallons and dimension of the tank, the maximum price of a tank having a dimension covered by the Schedule, but of a different nominal capacity than that listed in the Schedule, is the maximum price for the next lowest nominal capacity set forth in the Schedule •
F.o.b. pricing. The Schedule establishes delivered prices for sales within the Eastern area. Sales on an f.o.b. basis within the Eastern area are not permissible if the price plus the cost of delivery exceeds the delivered price established by ths Schedule.
Chargee for storage. Charges for storage, handling or city delivery costs in addition to the maximum prices are not permitted.
Violations and Evasions
Refusal to sell except on installed basis. Ths Schedule is not applicable to the sale of domestic fuel oil storage tanks on an installed basis. The refusal to sell tanks except on an installed basis, where the seller formerly sold such tanks individually, is a violation of the Schedule, since the restriction constitutes a tying agreement making the terms and conditions of sale more onerous to the purchaser than those available or in effect on October 15. 1941.
Definitions
"Longitudinal" seams are straight seams parallel with the longest dimension of the oil tank. e.g.. those running from end to end.
"Transverse" seams are those running around the tank parallel with the ends.
Labeling
"Permanently affix." The Schedule requires every manufacturer to "permanently affix" to each tank manufactured by hl*, a durable label setting forth certain information. This label must be affixed In such a manner that it cannot readily be removed or altered without detection.
Stenciling the label with paint does not meet this requirement • The label should be affixed by welding it to the tank.
2:3
Price Schedule No. 100
CAST IRON SOIL PIPE AND FITTINGS
Applicability
Retail salea. The Schedule does not cover sales at retail. A wholesaler who is also a retailer may sell at retail prices only if the establishment from which he sells at retail is conpletely separate from his wholesale establishment.
Sal»» to ultimate consumer. The Schedule is applicable to all sales by a wholesaler, including sales to an ultimate consumar.
Fittings used both on the inside of a building and on thè outside of a building are covered by the Schedule. "Fittings”, as used in the Schedule, refers to tubular connections between straight pieces of pipe, and have bell or spigot ends or both and no mechanical contrivance within them.
Fittings also include brass plugs when furnished with cleanout or test tees.
Definitions
Fittings. See page 2:4.
Maximum Price Regulation No. 206
VITRIFIED CLAY SEWER PIPE AND ALLIED PRODUCTS
Applicability
Sale from distribution yard owned by manufacturer. The Regulation does not apply to a sale of vitrified clay sewer pipe where the sale is made at a distribution yard, even though the yard is owned by a manufacturer of such pipe, provided that the delivery is made from the normal inventory of the yard and not from products unnecessarily routed through it.
Direct factory shipment. A shipment of vitrified clay sewer pipe originating at the factory is subject to the Regulation, even though it is sold to the purchaser by a wholesaler or retailer.
Taxes
Federal transportation tax. Supplementary Order No. JI states that for the purposes of determining the applicable maximum price of any commodity, with exceptions as listed, the 3% tar shall be treated as though it were an increase in transportation charges and not as a tax for which additional charges may be made.
This applies to Article 5 of Regulation No. 206 as follows: Inasmuch as the prices are based on freight rate sones, the tax will be the same as a freight rate increase. For example, the "fy tax on a 9# Akron rate would result in a rate of $0.0927 and the purchaser would be charged for delivery to the first zone as previously. However, the 3% tax'on a 10^ Akron rate would result in a rate of $0.10J and the purchaser would therefore be charged for delivery to the 11#-1J^ or second zone, in accordance with Section 5»3 of Article 5 of Regulation No. 206.
In the case of shipments which may be made to geographical zones covered in Articles 6 and 7 of Regulation Nd. 206, such shipments are necessarily made on a delivered zone price basis, and any increase in transportation charges must be absorbed by the seller. Inasmuch as the 3% excise tax "shall be treated as an additional transportation charge", the seller may not exceed maximum prices established for these zones by making additional charges for increases in transportation costs•
(Note: Since delivery practices differ in various areas, the above interpretation is applicable only to the Eastern, East Central, and Southern areas as defined in Sections 5.1, 6.1 and 7 •! of Regulation No • 206)
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Maximum Price Regulation No. 224
CEMENT
Price Determination
Prices which "would have been" charged, during base period. In determining what price "would have been" charged to a purchaser during the base period, March 1-15, 1942, the past practices of the seller's competitors in reference to pricing, freight allowances, etc., during the base period need not be considered, unless the seller's practice during the base period was to base his prices on those of the competitor. The fact that a past price "would have been” abnormally low or abnormally high during the base period should not be considered a factor, unless the conditions responsible for such abnormal price were'duplicated substantially during the base period.
Contract prices during the base period. In September 1941, a manufacturer contracted to sell cement to a dealer at $2.37 & barrel, the contract to expire in May 1942. In November 1941, the manufacturer increased his price 10 cents a barrel and notified the dealer of this new price, but continued to charge him $2.37 in accordance with the contract. In March 1942, when the freight rates advanced 4 cents per barrel, the manufacturer notified the dealer of this advance and quoted him a price of $2*51 a barrel, but continued shipments at the contract price of $2.37. The contract expired in May 1942. Pursuant to Section 1346.104(a) the manufacturer may now charge this dealer $2.51 a barrel. This section provides that the maximum prices to be charged under the Regulation shall be computed in accordance with what the price was or would have been during the base period, March 1-15» 1942, taking into consideration the "basis for the prices, pricing practices, freight practices, trade discounts • . • most favorable to purchasers in effect, published, listed, or quoted by the seller during the period March 1 to 15, 1942”. This section permits the manufacturer to determine a maximum price for this purchaser and other purchasers to whom the manufacturer sold under similar contracts during the base period, at the price which the manufacturer quoted or would have quoted the particular purchaser during the base period had there been no existing contract.
Comissions
Sales made outside normal market area. A manufacturer', selling cement outside his nor ml market area at the maximum f.o.b. mill prices set forth in Section 1346.104(b)(1)(1i), may not add any dealer's commission, regardless of any relationship between the manufacturer and the dealer located outside the manufacturer's normal market area. Any commission or selling expense incident to such sale must be paid by the seller out of his return from the sale of the cement at the maximum price.
Maximum Price Regulation No. 251
CONSTRUCTION AND MAINTENANCE SERVICES AND SALES OP BUILDING AND INDUSTRIAL EQUIPMENT AND MATERIALS ON
AN INSTALLED OR ERECTED BASIS
Applicability
Installation services. Machinery installation services performed by persons other than the manufacturer or the assembler of the machine or parts to be installed are covered by Regulation No. 251» and not Regulation No. 136 (Machines and Parts, and Machinery Services), which specifically excludes such services, Section 1390.10(f).
Erecting and dismantling typesetting machines. Maximum prices for moving, erecting and dismantling typesetting machines are established by Regulation No. 251; the sale and repair of typesetting machines are covered by Regulation No.. 136 (Machines and Parts, and Machinery Services)•
2:5
Where servicing and serviced, companies are owned by the same person. A company which renders "construction or maintenance services" to another company is subject to the provisions of the Regulation, even though both companies are owned by the same persons or stockholders.
Oil derrick construction. Where the erection of a derrick is a necessary operation in connection with the drilling of an oil well, the derrick construction is a service exempt from price control, pursuant to Section 1499.46(b) (106) of Supplement ary Regulation No. 11 to the General Maximum Price Regulation. However, if the derrick construction and drilling are not performed as part of one job under a single contract, the derrick construction is separable from the drilling operation and is subject to Regulation No. 251«
Conversion parts made for outmoded boilers. The Regulation is applicable to conversion parts made especially for outmoded boilers.
"Industrial boilers." See page 16:17
Electrical contractors. See page 16:16
Independent contractor and employee. Where a plumber supplies construction and maintenance service to a customer, the customer paying the workmen, material bills, Social Security tax and Workmen’s Compensation Insurance plus a percentage of cost for the plumber’s superintending of the work, the plumber is subject to the Regulation as an independent contractor performing a service on a "cost-plus basis".
Paper-hanging. Paper-hanging Is a "construction and maintenance" service, whether the paper-hanger uses his own paper or the paper is furnished by the purchaser of the service, unless an employer-employee relationship exists between the purchaser and the paper-hanger.
Dismantling work. A conpany, which is engaged in constructing coal breakers and selling related supplies, contracted to dismantle a coal breaker, move it to a new location, and to mark and handle the structural parts in such a manner as to render the parts fit and accessible for re-use and re-erection. The contract for the dismantling project Is covered by the Regulation.
House moving. A house mover who moves houses from one town lot to another is subject to the Regulation, even though he does not build the foundation at the new location and performs no repair work on the house.
Mine stripping. A contract for mine stripping, e.g.,the operation of removing overburden for open pit work, is similar to excavation work, and covered by the Regulation.
Exemptions - certification in Governmental contract. In order for a contract with a Governmental agency to be excepted from the Regulation under Section 1397 the agency must certify that the contract will be negotiated in accordance with a plan previously filed with OPA; a contract which merely provides that It is subject to renegotiation does not satisfy this requirement.
Building materials sold on an Installed basis are subject to Regulation No. 251, even though they are items specifically listed in Appendix A of Regulation No. 188 (Manufacturers’ Maximum Prices for Specified Building Materials and Consumer's Goods other than Apparel).
Landscape gardening is covered by the Regulation as a "construction and maintenance service". Landscape gardening is a construction service, since It usually Includes excavating, grading and other services incident to a building, structure, or construction project, or some part thereof. Regulation No. 165 (Services) is not applicable.
Sale at cost. A gas and electric utility conpany Installs gas mains and electric lines for industrial customers, the Army, Navy, and farmers. The gas mains and electric lines become the property of the customers after construction. Charges for the material and service are on a nonprofit basis, but include Indirect costs and overhead. The sale of the materials and services is subject to Regulation No. 251; Supplementary Order No. 38 (Accommodation Sales of Service) Is not applicable, since the transactions are not "accommodation sales of services" under that Order. Sales to the Army and Navy are exempt pursuant to Section 1387.53(f) of Regulation No. 251.
600780 0 - 44 -6
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Services covered. The following services are covered by the Regulation as "construction and maintenance services":
(a) Installation of plate glass store windows.
(b) Installation of stained glass windows used in churches and other edifices.
(c) Installation of a domestic hot water boiler by a plumber.
(d) Plumbing and heating services.
(e) Installation of monument foundations by cemeteries; also monument setting.
(f) Building water wells for home owners.
Price Determination
Branch offices. Where a seller has several operating units or branches, each unit or branch is a separate seller, unless a uniform pricing system has been maintained for all units or branches.
Lump sum charge for parts and installation service. The maximum prices for the sale of conversion parts are specified in cents per pound; the maximum prices for the installation of the parts are, however, computed on an hourly basis. A seller may charge a lunp sum for the conversion parts and the installation service in connection therewith, provided the total price charged does not exceed the sum of the maximum prices for the parts and the service.
Less than $500 sales - "increase in labor costs". In determining the maximum prices for sales not exceeding $500 (Section 1397-55)♦ increases in Social Security Taxes, Unemployment Insurance Taxes, and Workmen's Compensation Insurance premiums are not "increases in labor costs" under the Regulation, and may not be added to the March 19^2 prices, even though such increases result from increased labor costs.
Lump-sum contract - estimated and actual costs. Where a contractor prices a job on a lump-sum basis, his bona fide estimate of cost, made pursuant to Section 1397-57(a) * determines his maximum price for the job, even though his original estimate turns out to be higher than the actual costs.
"Labor rates in the area of installation." The labor rates paid by the individual contractor do not determine the "labor rates in the area of installation". As used in the Regulation, "labor rates in the area of installation" means the prevailing rate for the sane class of mechanic or laborer on a comparable type of work, e.g., public, private, residential, etc., jobs. The prevailing rate is the most common rate or, if no such rate can be determined, the average rate for mechanics or laborers on comparable work in the area of installation. Questions concerning the labor rates for union and non-union labor can ordinarily be solved by distinguishing between the types of work, since in this field union labor is ordinarily used on different types of work than is non-union labor.
Installation and repairs made by owner of house. Where a landlord makes installations and repairs to his own properties with his own employees and charges his lessees or »enants for such services, he is not subject to Regulation No. 251, or the General Maximum Price Regulation.
"Margin" and "labor costs". Compensation for services which the seller or contractor himself performs is part of the "margin" and not "labor costs". The term "labor costs" refers to expenses actually incurred by the person rendering the service in the payment of wages to laborers and mechanics.
Sales on a cost-plus basis - "actual cost" of materials - discounts. In determining maximum prices for sales on a cost-plus basis, one of the factors considered is the "actual cost" of materials and supplies, Section 1397-56(a)(1). As used in this section, "actual cost" is the cost after all discounts, e.g., net cost to the contractor.
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Actual cost of materials - calculation of margin. A painting contractor has on hand, turpentine which he purchased, at 32 cents a gallon in 1939; the March 1942 price is $1.05 a gallon. He proposes to use the 32 cents turpentine on a job. In determining the "actual cost" of the turpentine under Section 1397 »56(a) (1), and. the "estimated cost" under Section 1397 »57(a)(1), he must use 32 cents, and not $1.05» However, if the contractor charged $1.05 for turpentine in calculating the price of a similar job during the January 1, 1939 - March 31, 1942 base period, the difference between 32 cents and $1.05 is a base period markup which may be considered in determining the "margin" under Sections 1397 »56(a)(4) and 1397»56(a) (5). and will thus be included in the final determination of the maximum price. Where the contractor-determines his maximum price under Section 1397 »55* entitled Maximum prices for sales not exceeding $500, he may use the $1.05 figure, since the prevailing rate rather than the actual cost of the material is used in that section.
Taxes
Freight tax imposed by 1942 Revenue Act. Pursuant to Supplementary Order No. 31 - Tax on Transportation of Property Imposed by Revenue Act of 1942, the 3% tax on freight bills is treated by the OPA as an increase in freight. Therefore, the amount of the tax actually incurred by the contractor may be included as part of the "actual cost" of the materials under Section 1397*56 (a)(1), and it may also be considered in making the "estimated cost of materials" under Section
1397.57(a)(1)
Records and Reports
Certificate of conpliance - sub-contractor. Where a subcontractor is employed by the prime contractor, the prime contractor is a "purchaser" from the sub-contractor within the meaning of Sections 1397*61 and 1397»62, and therefore, must be furnished with the certificate of compliance and the notification required by those sections.
Maximum Price Regulation No, 416
DEAD-BURNED GRAIN MAGNESITE
Applicability
Imported magnesite. The sale of Inported magnesite is not subject to the Regulation; the Maximum Import Price Regulation applies.
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CHEMICALS AND DRUGS
Maximum Price Regulation No. 28
ETHYL ALCOHOL (EXCLUDING WEST COAST ETHYL ALCOHOL)
Applicability
Jobbers or other distributors are not subject to the Regulation, unless such persons are acting directly or indirectly on behalf of manufacturers as agents or otherwise.
Sale as antifreeze. Sales by the manufacturer of any ethyl alcohol of the formulae specified in the Regulation, in quantities of 50 gallons or more, are covered by the Regulation, unless such formulae are sold as antifreeze. Sales by the manufacturer or any other person of ethyl alcohol or ethyl alcohol formulations, in quantities of less than 50 gaLIons, when sold as an antifreeze are subject to Regulation No. 170 (Anti-Freeze); when sold for other uses the General Maximum Price Regulation applies.
General. The RegulAion applies only to sales of ethyl alcohol by manufacturers; sales by distributors are covered by the General Maximum Price Regulation,
Price determination
Converted alcoholic beverage distillery—cost of converting brewery. The cost of converting: a brewery to the" production of industrial alcohol is a capital expenditure and not a cost of production within the meaning of Section 1335.159(e). The provision in that section for ’’other conversion costs” refers to the costs involved in the conversion of the raw materials into ethyl alcohol.
Report of maximum price for period ending March 31, 1943. Maximum Price Regulation No. 28 superseded Revised Price Schedule No. 28, as of February 27, 1943. However, where a converted alcoholic beverage distillery determined its maximum prices under Revised Price Schedule No. 28, and filed a report of the period ending March 31, 1943, the maximum prices so determined under the Schedule continued in effect until March 31, 1943.
Sales to Defense Supplies Corporation - sales through more than one outlet. Where a seller owns more than one plant and each plant is under contract to sell grain ethyl alcohol to the Defense Supplies Corporation, each plant is considered a separate seller and must compute its maximum prices individually, under the formulae in Section 1412.263(h). The reports required by the section must also be filed .separately.
Records and Reports
General. Sellers and buyers subject to the Schedule must keep detailed sales and purchase records for as long as the Emergency Price Control Act of 1942, as amended, remains in effect.
Price Schedule No. 31
ACETIC ACID
Price determination
Charge fqr containers. A reasonable charge is permitted for containers in which acetic acid is sold in addition to the established maximum prices. The additional charge for containers is allowed whether or not they are wooden barrels and whether or not they are returnable by the purchaser. Where the container is returnable by the purchaser, such
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reasonable charge may not be greater than the actual cost to the seller for the use of such container.
Maximum Price Regulation No. 36
ACETONE
Price determination
Synthetic acetone - synthetic butyl alcohol and normal synthetic butyl acetate. Although during March 1942, maximum prices for synthetic acetone were established by Schedule No. 36, most of the sales during that month were at prices below the maximum prices established by that Schedule. Therefore, pursuant to Section 1412.66(b) of the Regulation, the maximum prices for each seller of synthetic acetone were established at the lower of (1) the prices set forth in the Regulation, or (2) the highest prices the seller charged during March, the base period of the General Maximum Price Regulation. A similar provision concerning synthetic butyl alcohol and normal synthetic butyl acetate is contained in Section 1412.116(b) of Regulation No. 37 (Butyl Alcohol and Esters Thereof).
Maximum Price Regulation No. 37
BUTYL ALCOHOL AND ESTERS THEREOF
Price determination
Synthetic acetone - synthetic butyl alcohol and normal synthetic butyl acetate. See page 3:2.
Price Schedule No. 38
GLYCERINE
Price determination
Taxes
Illinois Retailer’s Occupation Tax may be added, when the tax is applicable as a charge to the buyer over and above the maximum prices.
Price Schedule No. 68
HIDE GLUE STOCK
Applioability
General. The Schedule is applicable to the seller and purchaser of hide glue stock of the types and grades listed in Appendix A (regardless of the uses to which they are put), m quantities of 100 pounds or more, except that cattle lips and snouts when sold for use as crab bait are not subject to the Schedule.
Green salted calf skin trimmings are not subject to the Schedule. The classification in Appendix A of the Schedule "Green salted hide trimmings” does not cover calf trimmings.
Unlisted grades. The Schedule applies only to the grades of hide glue stock listed in the Schedule and since dried sheep trimmings and dried, cattle trimmings are«not listed they are not covered.
Price determination
General. The Schedule establishes dollar-and-cents maximum prices, f.o.b. seller’s
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shipping point. "Seller's shipping point" means point of production or other point of distribution maintained by a producer or seller«
Transportation charges. When seller's shipping point is at a point other than producer's plant, the actual freight between the plant and shipping point may be added to the established maximum f.o.b. seller's shipping point prices.
Packing materials« The maximum prices are f.o.b. seller's shipping point. Therefore a purchaser may not furnish packing materials to prepare the stock for shipment if the total of the cost of the packing materials and the price charged exceeds the maximum price.
Classification
Green salted calf skin trimmings. See page^s^.
Fleshings obtained from hides weighing 45 pounds or more are classified as sole leather fleshings; fleshings obtained from hides weighing less than 45 pounds are classified as common and fleshings.
Price Schedule No. 76
HIDE GLUE
Applicability
Mixtures of hide glue, with gelatine, or with bone glue, are covered by the Schedule.
Technical gelatine which meets the following requirements is not covered by the Schedule: (1) it is made from stock which could be used for the production of edible gelatine if it had been carefully handled prior to gelatine preparation; (2) it is produced in the same manner as edible gelatine except for the usual sanitary precautions; (3) it tests at 500 grams or better; and (4) is bleached, carefully filtered, and dried in thinner sheets than hide glue«
Price determination
F.O.B. pricing. The maximum prices established by the Schedule are delivered prices. Accordingly, a sale may not be made f.o.b. seller's warehouse if the f.o.b. price plus the cost of delivery to the purchaser exceeds the maximum price«
Although the maximum prices established by the Schedule are prices delivered to the buyer's plaoe of business, a seller may quote prices f.o.b« point of shipment provided the total of the f.o.b. sales price plus the transportation costs involved in delivering the glue does not exceed the maximum prices of the Schedule.
Quantity differentials. The Schedule provides for a 1/ per pound addition for deliveries of hide glue, chrome glue and coney glue in less-than-carload lots. Where customers who formerly ordered carload lots are willing to place orders in carload quantities for shipments in lots of 3,000 to 10,000 lbs., because of the supply problems, the less-than-carload prices may be charge. However, attempts to split a transaction into smaller shipments to take advantage of additional charges on less-than-carload shipments are an evasion«
Violations and Evasions
Quantity differentials. See page 3'3.
Price Schedule No. 79
CARBON TETRACHLORIDE
Applicability
General. All grades are covered by the Schedule except C.P. and U. S. P.
Sales in less than 5 gallon cams. Where carbon tetrachloride is packaged or repackaged
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in containers of less than five gallon capacity for the purpose of evasion, the regulation applies.
5 gallon containers, The sale of carbon tetrachloride in 65-pound units in five-gallon containers, the containers not being filled to normal capacity of 67 pounds, is subject to the Schedule. The size of the containers and not the volume of the unit of shipment determines the applicability of the Schedule, since the Schedule specifically refers to sales in "containers of 5 gallons or more."
Price Determination
F.O.B. pricing. While the Schedule establishes maximum delivered prices for deliveries in specified zones, prices may be quoted f,o,b. shipping point, provided that the quoted prices, plus the transportation changes, do not exceed the prices established by the Schedule.
Exporter's mark-up. The provisions in the Schedule for exporter's mark-up have been superseded by the Maximum Export Price Regulation effective April 30, 1942.
Carload lot. The minimum quantity making up a carload lot for purposes of the Schedule is the smallest quantity which, under the tariffs of railroad carriers, would move from the point of shipment to the point of destination at a railroad carload rate rather than at a railroad less-than-carload rate, because a lower transportation charge is produced thereby.
Violations and Evasions
Sales in less than five gallon cans. See page 3:3
Price Schedule No, 80
LITHOPONE
Applicability
Dry form of lithopone is covered by the Schedule.
Oil form of lithopone is not covered by the Schedule.
Paste form of lithopone is not covered by the Schedule.
Powdered form of lithopone is covered by the Schedule
Price Determination
Charge for export packaging. Where a sale of lithopone is made to a domestic exporter who requires the seller to supply a special export packaging, the seller may add the cost of the special export packaging to the maximum price, provided that the packaging charge does not exceed the ceiling for such service, and the charge is separately invoiced.
Price Schedule No, 98
TITANIUM PIGMENTS
Applicability
Repurified titanium dioxide produced to conform to the standards of the Food, Drug and Cosmetic Division of the Department of Agriculture, and sold only for use in pharmaceuticals and cosmetics is not covered by the Schedule. The Schedule is applicable only to those grades of titanium dioxide listed in the Appendix.
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Maximum Price Regulation No, 170
ANTI-FREEZE
Applicability
Sale as anti-freeze. See page 3:1.
Sales by jobbers. Sales of types N and S anti-freeze by a jobber for his own account (and not as an agent of manufacturer) to another jobber or wholesaler are not subject to the Regulation; such sales are exempt from price control, see Section 1412.1(b).
Price Determination
"Delivered* prices in sales to retailer. The maximum prices for the sale of antifreeze to retailers are on a delivered basis, that is, delivered to the retailer’s place of business.
Definitions
Alcohol. Propylene glycol and polyethylene glycol are not alcohols within the meaning of Section 1412.12(a)(3).
’’Delivered* prices in sales to retailers. See page 3:5.
"Delivered*. Under the Regulation, the term "delivered" means delivered to the buyer at his usual place of business.
Records and Reports
Marking and posting—retailers—sales in containers of more than 5 gallons. The retailer is required to mark the type, strength and the maximum retail price of antifreeze sold from containers of more than 5 gallons, whether or not it was packaged prior to June 30, 1942, see Section 1412.6(b)(2).
Maximum Price Regulation No. 171
FILM SCRAP
Price Determination
Charge for clipping or rounding corners.
Question: Under Appendix B(b)(l)(ii), is 25 cents per thousand sheets the maximum charge that may be made for clipping or rounding corners, even though more than one corner is clipped or rounded on each sheet?
Answer: Yes. Therefore, when all four corners of each sheet are clipped or rounded, only 25 cents per thousand sheets (not four times 25 cents) may be charged.
Maximum Price Regulation No. 179
PINE OIL
Price Determination
"Reasonable deposit" on drums - return freight. A "reasonable deposit" on drums of pine oil sold to federal agencies for lend-lease shipment abroad should not exceed the actual cost of the drum, the drum to be returned within 90 days or the deposit forfeited. The seller of the pine oil is responsible for the return freight on drums only from the point of delivery of the filled drum to the buyer in the continental United States to the producer’s plant.
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Maximum Price Regulation No. 192
IMPORTED CRESYLIC ACID
Applicability
"Delivery" after effective date. A contract to sell imported cresylic acid to the A Company was entered into on July 7, 1942, by the X Company. During June the X Company had entered into a contract with an importing company pursuant to which the latter company agreed to import and sell to the X Company cresylic acid in a sufficient quantity to cover its sale to the A Company. On July 31, 1942, when the acid was on the high seas enroute to the United States, the importing Company sent the X Company its invoice for the acid. On August 4, 1942, the X Company issued to the A Company its delivery order on the delivery clerk of the vessel, which was still enroute to New York, bearing the acid, and on that date, it issued its invoice for the acid to the A Company at the contract price. The vesae! docked in New York on August 10, 1942, and by means of the aforementioned delivery order, the A Company thereupon took physical possession of the acid from the delivery clerk of the vessel. The acid was invoiced to the importing company by its British suppliers on Jply 13 and the sale to the X Company was exdock New York, duty paid, delivery to be made against presentation of a delivery order made out by the importing company’s custom house brokers after clearance through the custom house. The importing company retained the right to receive the acid from the carrier until after August 4, 1942. The Regulation is applicable to the above sale of cresylic dcid by the X Company to the A Company, since no "delivery" of the acid effected to the X Company by the importing company, the original consignee, prior to August 4, 1942, the effective date of the Regulation, and therefore, delivery by the X Company to the A Company could not have occurred prior to that date.
Price determination
Binding contracts to import "after August 5, 1942". Cresylic acid imported after August 5, 1942, pursuant to a contract entered into prior to that date which obligated the importer to accept such cresylic acid, is not a purchase "made after August 5, 1942" Section 1416.60(a)(1)j the importer is not limited to the base price of 70/ per gallon, where he actually paid a higher ex-works price pursuant to such a contract.
Maximum Price Regulation No. 203
VITAMIN A NATURAL OILS AND CONCENTRATES
Applicability
Sales to oleomargarine manufacturer. The sale of Vitamin A natural oils or concentrates to an oleomargarine manufacturer for incorporation into oleomargarine is subject to the Regulation, since the mixing of such oils and concentrates with oleomargarine and the subsequent packing of the product constitutes "further processing or packing by the buyer".
Maximum Price Regulation No. 264
INDUSTRIAL WAXES
Price determination
Addition of transportation charges incurred by the seller. The provision in Section 1415.63(f), that “any actual transportation charges incurred by the seller" may be added to- the maximum price, does not include transportation charges incurred by a previous seller. Thus, where a Chicago refiner imports crude beeswax entering at New York and sells the refined beeswax to a Boston firm, the only transportation charge that the Boston firm may add to the maximum price is the transportation charge actually incurred by it, i.e., the charge for transportation from Chicago to Boston.
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Resale of crude domestic beeswax by processor. Where a person buys crude domestic bees-wax in small quantities from bee keepers and others, and resells it without processing in larger quantities, there is no applicable maximum price for his resale of crude domestic beeswax. However, the sellers of the refined and bleached domestic beeswax may not charge prices in excess of those permitted by the Regulation, regardless of the price paid by them for the crude domestic beeswax.
Beeswax imported from Mexico - export and marine and war risk insurance,
Question: Can an export tax by the Mexican government on beeswax be added to the maximum price of imported beeswax as established by the Regulation?
Answer: Mo. Section 1415.65(d) provides that no costs of importation other than those named in that paragraph (d), i.e., freight, marine insurance, and war risk insurance, may be added to the maximum prices. Accordingly, the Mexican export tax may not be added.
Question: Should marine insurance and war risk insurance, provided for in Section 1415.65(d), be deducted from the maximum price as stated in Section 1415,65(d)(4)?
Answer: Yes. Importation of waxes from Mexico does not carry marine insurance and war risk insurance. Therefore, 0.5 percent representing marine insurance, and 1 a percent representing war risk insurance, must be deducted if the sum of these amounts exceeds 25 cents per 100 pounds,
Question: Can transportation costs by rail, if more than the basic freight used in calculating prices of the Regulation, be added to the maximum price?
Answer: Yes. The Regulation specifically states in Section 1415.65(d), that variations in freight cost from $2.00 per hundred pounds to New York if more than 25/ per cwt. may be added to or must be subtracted from the maximum price as the case may be. This pertains only to freight from port, country of origin, and in the case of transportation from Mexico would refer only to freight from the point where it leaves Mexico.
Charge for containers. The maximum prices in the Regulation include the cost of the containers-," Section lïfF.65(i). Therefore, a seller of industrial waxes who retains title to the container must deduct the value of the empty container from the maximum price.
Maximum Price Regulation No. 278
TOTAQUINA AND TOTAQUINA PRODUCTS
Records and Reports
Chain stores. Stores which are part of a chain-store system must keep the records required by "Section 1396.312, if each store is a separate corporate entity; however, if only one corporate entity is involved, deliveries by the chain to its own stores are intra—company transactions and are not subject to the provisions of Section 1396,312.
Maximum Price Regulation No, 282
CERTAIN PRIVATE FORMULA PHARMACEUTICAL, PROPRIETARY DRUG AND COSMETIC PRODUCTS
Price determination
Hair tonic - decrease in alcohol content. A manufacturer of hair preparations decreased the alcohol content of its private formula hair tonic from 50% to 35% due to the difficulty of obtaining alcohol. The reduction of the alcohol content of the hair tonic and the substitution of other ingredients in place thereof, resulted in a different commodity than was delivered or offered for delivery during March 1942. Therefore, the manufacturer must determine his maximum price under Section 1396.254, as a product not delivered or offered for delivery during March 1942,
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Maximum Price Regulation No, 345
THERMOPLASTIC SCRAP
Applicability
Sheet scrap. Strips or sheets of acrylic scrap to 3/8* thick are "sheet scrap" within the meaning of Section 1436.13(a)(3)(b) of the Regulation, not "molding scrap" as defined in Section 1436.13(a)(3)(a), even though such strips or sheets are fabricated by a molding process.
Price Determination
Unground or reground methacrylate. The Regulation establishes the same maximum price for unground and reground methyl methacrylate scrap. Therefore, no extra charge may be made for regrinding (even though done pursuant to customer's specifications), or for removing imputities.
Maximum Price Regulation No. 390
HOUSEHOLD SOAPS AND CLEANSERS SOLD BY RETAIL FOOD STORES
Applicability
"Borax" and "Boraxo*. "Borax" and "Boraxo" are not "household soaps or cleansers" within the meaning of Regulation No. 390 or Regulation No. 391 (Household Soaps and Cleansers Sold by Manufacturers and Certain Wholesalers), and therefore are not covered by those regulations; the General Maximum Price Regulation applies.
Price Determination
Unlisted brands - optional pricing. The option to determine the maximum prices of unlisted brands of household soaps and cleansers under the General Maximum Price Regulation, given to a retail food store by Sections 17, 18, and 19 of Regulation No. 390, and to manufacturers and certain wholesalers by Section 6(i) of Regulation No. 391 (Household Soaps and Cleansers Sold by Manufacturers and Certain Wholesalers) may be used by a person first selling household soaps and cleansers after the effective dates of these regulations.
Maximum Price Regulation No. 391
HOUSEHOLD SOAPS AND CLEANSERS SOLD BY MANUFACTURERS AND CERTAIN WHOLESALERS
Applicability
"Borax" and "Boraxo". See page 3:8.
Price Determination
♦
Unlisted brands - optional pricing. See page 3:8.
Discounts. The maximum prices listed in Section 6 are net prices. Accordingly, discounts previously extended by a wholesaler to a retailer of household soaps and cleansers need not be continued. Customary discounts may also be discontinued on sales of unlisted household soaps and cleansers, where the wholesaler uses the margin factors specified in Section 6(i). Where, however, the wholesaler exercises the option to determine the maximum prices for unlisted items under the General Maximum Price Regulation, he must continue his customary discounts.
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Violations and Evasions
Tying agreements. Due to the shortage of soap, a company conducts a voluntary rationing plan under which it allots a certain amount of soap to its customers. However, customers who participate in the company’s advertising campaign, whose primary purpose is to-urge housewives to save waste fats and oils, are allowed extra soap. The customers must pay the maximum prices for his extra soap as well as contribute to the cost of the advertisement. Under the Regulation, this plan constitutes a violation as 8 tying agreement, since the retailer is required to purchase advertising space in order to get the extra allotment of soap.
Maximum Price Regulation No. 392
PACKAGED DRUGS
Applicability
Exempt-sale. Sales of packaged drugs by a registered pharmacist on prescription, or by a physician or other authorized practitioner to his patients, are exempted from the Regulation, Sections 3(a)(1) and (2). The manufacturer or reseller from whom the packaged drugs are purchased by the registered pharmacist or physician, are not within the exemption. * .
Price determination
Combination sale. Where a seller customarily sold two items of “packaged drugs” separately, i¥ is permissible to sell both items as one unit at a price equivalent to the sum of the maximum prices for the items. However, each item must also be offered for sale separately.
Maximum Price Regulation No. 393
PACKAGED COSMETICS
Applicability
Packaged cosmetics sold under buyer’s brand name. A company purchases cases and lip-sticks from other manufacturers, assembles and packages them and then sells them under his customer’s special brand name. The company does not qualify as a manufacturer within the meaning of Section 1(a)(4). Sales by the company are covered by Regulation No. 282 (Certain Private Formula Pharmaceutical, Proprietary Drug and Cosmetic Products) as sales of ’’private formula products”.
Maximum Price Regulation No. 431
CHARCOAL
Price determination
Dealer’s maximum price. The only dealers who are permitted to make the additions provided in Section 10(b), are those who purchase hardwood charcoal from producers for whom specific maximum prices are listed in Section 10(a). A dealer who purchases charcoal from a producer not subject to the Regulation, but who has increased his maximum price pursuant to an order issued under Section 18(c) of the General Maximum Price Regulation, may not increase his resale price under Section 10(b) of Regulation No. 431, unless such order makes provision for such increase by the dealer.
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CONSUMER DURABLE GOODS
Price Schedule No. 57
WOOL FLOOR COVERINGS
Appli oability
Fabric manufactured for use as gun swabs. Fabric manufactured for use as gun swabs is not Included within the definition oF wood floor covering, and therefore not subject to the Schedule.
Violations and Evasions
Refusal to accept orders for 9* by 12* rugs and offering instead a slightly different size. See page 4:21
Prioe Schedule No. 64
DOMESTIC COOKING AND HEATING STOVES
Applicability
General. The Schedule is applicable to sales of domestic cooking and heating stoves by manufacturers. The term manufacturers includes a person who resells private brand stoves to persons other than retailers, or ultimate consumers, or a person who resells private brand stoves, the patterns or dies for which he owns.
Flat top water heaters which can be used for cooking are covered by the Schedule.
Gas circulating heaters are covered by the Schedule.
Gas floor furnaces are not covered by the Schedule.
Gas space heaters are covered by the Schedule.
Hot water heaters used exclusively to heat water are not covered by the Schedule.
Hotel ranges are not covered by the Schedule.
Sheet iron Airlite Heaters are covered by the Schedule.
Water heaters which are also used as space heaters are covered by the Schedule.
Price Determination
Net purchase prioe. A manufacturer’s maximum price for stoves is 112% of the lowest net prioe quoted by him for the sale of such stove during the base period January 15 to June 1, 1941 to the same purchaser, or to purchasers in the same general class. The term "net prioe quoted" is defined in the Schedule as the price shown in the manufacturer's price list or catalogue less all discounts. Where a manufacturer granted during the base period a 10% discount to particular customers, he must apply the 10% discount if this was the maximum discount during the base period in determining the lowest net price for the purchasers in the same class as the particular customers.
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Taxes
Manufacturer’s Federal excise tax. The manufacturer may pass on the actual tax paid by him by adding the amount of the tax to the maximum price, tyramiding of a tax, however, is not permissible.
Federal excise tax. Maximum Prices established by Section 1356.1 do not include federal excise tax, and hence a manufacturer may charge such tax over and above the maximum prices. The tax should be separately stated.
Violations and Evasions
Adding service charge to maximum price - "blind billing." The salesmen of a stove company customarily rendered demonstrating and repair services to the purchasers of stoves and a charge for this service was added by the salesmen to the price for the stove, the purchaser being invoiced at the aggregate figure. The service charge was segregated on the books of the company and paid to the salesmen in addition to his commission for the sale of the stove. These service charges may not be added to the "lowest net price" on which the 112% computation is made by the manufacturer in determining his maximum price. While no salesman’s service charge may be added to the "lowest net price," it may be added to the maximum price when the service rendered is clearly a service in addition to selling the stove. Where so added, the charge may not be hidden in the invoice as part of the purchase price of the stove. If the service charge is billed and collected by the company for the benefit of the salesmen, the invoice must clearly show the service charge as well as the price of the stove. The purchaser may not he forced to accept the service as a condition of purchasing the stove.
Eliminating quantity discounts by voluntary rationing. Where a manufacturer institutes bona fide voluntary rationing of shoves to bls customers, because his production has been substantially cut and production cannot be expanded to meet increased demand, he is required to give only the quantity discounts applicable to the actual quantity sold on each order regardless of the quantity ordered.
Maximum Price Regulation No. 65
RESALE OF FLOOR COVERINGS
Applicability
General. The Regulation applies to sales by distributors; sales by other persons, such as retailers, are not covered.
Imports. The Regulation does not regulate the prices of imported wool floor coverings, (trice Schedule No. 65, which was replaced by the present Regulation on March 9, 1942, applied to imports.)
Price Determination
Inventory acquired before and after January 2, 1942. As to inventory on hand January ¿, 1$42, the distributor’s maximum price for 9’ x 1?’ rugs cut by him from a 9’ or 12* roll is determined by his selling price during the base period. As to inventory acquired subsequent to January 2, 1942, his maximum price for such rugs is the price shown in the manufacturer’s current low basis price list, regardless of whether he does his own cutting from rolls or resells rugs already cut by the manufactuer.
Violations and Evasions
Refusal to accept orders for 9* by 12* rugs and offering instead a slightly different size. A distributor may not refuse orders /or the 9’ by 12* size rug, which is generally quoted on a roll price basis rather than a out order price, and offer his customers a slightly different size, such as 9* by 12’1", in order to obtain the
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higher cut order price. If a distributor is unwilling to accept an order for a 9’ by 12* rug, the order should be refused without the offer of a size which differs only slightly.
Price Schedule No. 83
RADIO RECEIVERS AND PHONOGRAPHS
Applicability
Phonographs. The sale of phongraphs which employ mechanical reproduction as distinguished from electrical amplification is not subject to the Schedule even though the turntables are driven by electrical means.
Price Determination
Sales to person of the same general class. The Schedule fixes maximum prices in terms of the highest price charged during the applicable base period "to the same person or a person of the same general class." Where a manufacturer, during the base period, had charged special prices to purchasers buying for export, these purchasers constitute a general class.
Credit terms. The Schedule‘provides that the maximum price for current models offered for sale on or before October 15, 1941 is the highest "net price" at which such model was billed by the manufacturer for a delivery made during the base period, July 15, 1941 to October 15, 1941. The Schedule defines "net price" as the amount billed or quoted for a sale after deducting all discounts and allowances. The evasion provision, however, provides that the limitations set forth in the Schedule shall not be evaded by making rebates, discounts, or other terms and conditions of sale less favorable to the purchaser than those in effect on October 15, 1941. Where the net price of a radio was the same throughout the base period but the terms of payment were less favorable to the buyer on October 15th than during the base period, the terms of payment in effect during the base period must remain in effect. Accordingly, where a radio was sold on August 15, 1941 at $85 with a discount of 2% for payment within 30 days,but the same radio was sold October 15, 1941 at $85 subject to a discount of 2% for payment within 10 days, the August 15th terms must remain in effect.
Violations and Evasions
Discounts. Where in the base period the manufacturer placed "2% 10 days" on his invoices but actually permitted customers to pay within the end of the month, he must allow the 2% discount if payment is made after 10 days but before the end of the month. Such manufacturer must change his invoices so that they state that 2% will be allowed, if payment is made by the end of the month.
Cost-plus contract. A manufacturer had a contract with a buyer of record players to sell a certain model player. The question arose whether the contract was a cost-plus contract within the meaning of Schedule No. 83 and Schedule No. 84 (Radio Receiver and Phonograph Parts). The contract contained the following language:
"We reserve the right to increase the above quoted price at the time of shipment due to any increase in manufacturing costs beyond our control, or due to factory or labor conditions, increases in cost of materials or delays due to Government priorities, preference ratings or priority requests. In the event that any such increase exceeds
ten percent of the above-quoted price, you may have the option of cancelling your order."
A cost-plus contract is defined in Schedule Nos. 83 and 84 as:
"An agreement providing for (i) a price equal to the manufacturer’s cost plus a stated percentage of fixed fee, or (ii) a specified price which is subject to adjustments covering variances from manufacturer’s cost estimates."
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A contract can be a cost-plus contract within the meaning of clause (ii) of the above definition, even if the specified price is not subject to downward revision. However, in order to come within clause (ii) of the definition, the contract must establish a definite relationship between the upward adjustments to be made in the specified price and variance from the manufacturer's cost estimates. The language of the contract in question is ambiguous with respect to the relationship between the price adjustment and cost variance•
One possible interpretation of the language used is that the manufacturer will be entitled to add to the specified price only an amount equal to the increase in the cost of manufacturing each unit (due to certain specified circumstances) over the estimated cost at the time the contract was entered into, as shown by the manufacturer's cost accounts. However, a second and equally plausible interpretation of the contract is, that if, by reason of increases in manufacturing costs due to certain specified circumstances, the manufacturer should deem it advisable to raise the market price of the record player, it could also raise the price for future deliveries to the buyer under the contract (up to the 10^ limit beyond which the buyer could cancel) in an amount which has no relationship to the amount of the increase in the manufacturing costs.
There has been no customary course of dealing between the manufacturer and the buyer by reference to which the ambiguity in the contract could be resolved.
Under these circumstances if the parties to the contract are able to agree upon the proper interpretation of the contract, OPA will accept that agreement as resolving the ambiguity. If the parties agree that the first interpretation (manufacturer to add to the specified price only the amount of cost increases) is the one which was intended by them, OPA will regard the contract as a cost-plus contract within the meaning of these two Schedules. In the absence of an agreement to that effect, the contract will not be treated as a cost-plus contract.
Credit terms. See page 4:3.
Price Schedule No. 84
RADIO RECEIVER AND PHONOGRAPH PARTS
Applicability
General. The Schedule applies to all sales by manufacturers of radio receivers and phonograph parts. If the seller is both a manufacturer and wholesaler, all his sales, including his wholesale sales, are subject to the Schedule.
Amplifiers primarily designed for use in public address systems are not covered by the Schedule.
Bolts, nuts, screws, rivets, and washers are not covered by the Schedule. These items are frequently used for purposes not connected with radios and phonographs.
"Part." A minor change in specifications which does not materially change the character of the part, degrade the quality, or effect an increase in price does not create a new part, nor does a slight variation in shaft length and spacing of sections create a new part. Therefore, any such changed part may be sold without obtaining approval of the price by OPA.
Parts of radio tubes are not covered by the Schedule.
Phonograph needles are not covered since they are not "parts" within the meaning of that term in the Schedule.
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"Power packs" are a "part" as defined in the Schedule.
Radio antenna is a "part" within the meaning of the Schedule only when it is built into the radio receiver•
Radio cabinets are not covered when sold separately and not in conjunction with any radio or phonograph part.
Replacement transformers that might be used in home equipment or commercial amplifiers where the primary use is for home equipment are covered by the Schedule.
Price Determination
Person Of same general class. The maximum price that may be charged a particular customer is the highest price billed by a manufacturer during the base period to any customer of the same general class, and not necessarily the highest price charged the same customer during the base period.
Recorder of smaller quantity of same part. The maximum price for a reorder of a small number of parts may not exceed the price for the original order when the price for the original order was quoted during the applicable base period, even though the original order covered a larger number of parts.
Definitions
Cost-plus contracts. See page 4:3.
Price Schedule No. 102
HOUSEHOLD MECHANICAL REFRIGERATORS
Applicability
Ice cream cabinets. Ice cream cabinets are not "household mechanical refrigerators" and therefore the following schedule and regulations are not applicable: Schedule No. 102; Regulation No. 110 (Resale of New Household Mechanical Refrigerators);
and Regulation No. 139 (Used Household Mechanical Refrigerators); the General Maximum Price Regulation applies.
Price Determination
Inclusion of added cost of l.c.l. shipments by manufacturer to distributor• See page 4:6.
"Ultimate consumer" and "wholesale consumer." For the purpose of determining the amount which may be added io the base price under Section 1380.51(d)(2), an "ultimate consumer" is a person who purchases a refrigerator for use in his own home; a "wholesale consumer" is a person who purchases for use, rather than for resale, but is not an ultimate consumer. Thus, federal, state, and local government agencies, privately financed housing projects, hospitals, doctors, medical laboratories, druggists, schools and colleges are "wholesale consumers" since such persons purchase for use rather than for resale and do not purchase for use in a home.
Additions to base price for transportation costs. The amount which may be added to hhe base price of the refrigeratoris the transportation cost "from manufacturer’s point of shipment to destination," see Section 1380.51(d)(4). The manufacturer’s point of shipment is his factory, since that is the customary understanding of the trade. In computing the amount which may be charged for transportation, there may be added only the cost of direct shipment of the refrigerators from the factory to the ultimate destination, irrespective of the fact that the refrigerators were shipped
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from an itermediate point at which they were warehoused. Thus, if the manufacturer’s factory is in Erie, Pennsylvania, and refrigerators are shipped from Erie to a warehouse in New York. City, and subsequently sold and shipped from the warehouse to a distributor in Philadelphia, the maximum amount which may be added for transportation may not exceed the cost for a direct shipment from Erip to Philadelphia.
Maximum Price Regulation No. 110
RESALE OF NEW HOUSEHOLD MECHANICAL REFRIGERATORS
Applicability
Gas refrigerators. Electrolux Servel and other refrigerators which operate by gas, kerosene, or other fuel are household mechanical refrigerators within the meaning of Section 1380.109(a)(6), and therefore the sale of this type of refrigerator is subject to the Regulation.
Household mechanical refrigerator sold for other than household use. "Household mechanical refrigerators" as used in the Regula tion includes any new mechanical refrigerator made for household use, whether or not it is sold for use in a household. Thus a refrigerator of large cubic capacity made for household use and purchased for use in a restaurant or other commercial establishment comes within the Regulation.
Ice Cream cabinets. See page 4:5.
Price Determination
Unlisted zone. The maximum prices vary according to the selling zone as well as according bo the brand and model number of the refrigerator. The limits of the area of the numbered zones are those established by the manufacturer as of February 1, 1942, the base date. For sales outside the areas covered by zones specifically designated in the Regulation, the seller may add to the respective zone prices "the normal differential existing for each model on February 2, 1942 in his locality," This provision has been interpreted to permit a dealer whose zone price is not listed in the Regulation to charge the highest net price charged by him on February 2, 1942.
Warranties. Since the Regulation provides that the maximum prices of all models include a five-year warranty by the seller, a sale at the maximum price must include this warranty.
Inclusion of added cost of l.o»l, shipments by manufacturer to distributor. A distributor’s price is determineci under the Regulation by the percentage of thetote 1 doll ar margin between the manufacturer’s net price to him and the dealer’s resale price to consumers. In determining this maximum price for sales to dealers, a distributor may include his added cost for less-than-carload-lot shipments made by the manufacturer to the distributor since pursuant to Section 1380.51(d)(5) of Schedule No. 102 (Household Mechanical Refrigerators), a manufacturer may charge up to 2% of the base price of the refrigerators for less-than-carload-lot shipments and this charge becomes part of the manufacturer’s net price to the distributor.
A gas utility company engaged in making sales of new household mechanical refrigerators to both consumers and dealers is both a "distributor" and a "dealer", as defined in Section 1380.109(a)(3) and (4). The utility company should determine its maximum price for each sale depending upon whether it is acting as a dealer or distributor in the particular transaction. Thus, a public utility company making a sale to a consumer, i.e., a person who purchases for use rather than resale, is limited to the maximum retail price established by Section 1380.110(a)(1); if the sale is made to a person who is a dealer and not a consumer, the maximum price must be determined under Section 1380.110(b).
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Definitions
"Same general class of dealer.” Where a wholesale dealer classified his purchasers (retail dealers) into four classes on the basis of his estimate of the annual volume of purchases which could be expected, and granted discounts ranging from 30 to 40 percent for these classes and all his purchasers are now small volume purchasers, he may reduce his discount to 30 percent for all purchasers, since they are all small volume purchasers.
Gas utility company. See page 4:6.
Maximum Price Regulation No. Ill
NEW HOUSEHOLD VACUUM CLEANERS AND ATTACHMENTS
Applicability
Discontinued models of new household vacuum cleaners are subject to the Regulation.
Sales between dealers. Sales of used household mechanical refrigerators by one second-hand furniture store to another second-hand furniture store are not subject to the Regulation since they are not sales "to a consumer" within the meaning of the Regulation; the General Maximum Price Regulation applies.
Repossessed vacuum cleaner. See page 4:10.
Price Determination
Cost of labor in replacing defective part of reconditioned refrigerator. A seller of reconditioned refrigerator may not impose a labor charge for the installation of a replacement part in the refrigerator where the replacement is made in accordance with the guaranty "that any part proving defective within one year from the date of installation will be replaced free of charge".
labeling
Tags» In all sales of household vacuum cleaners a label must be attached reciting the legend set forth inthe Regulation. The labeling requirement also applies to vacuum cleaners in the seller’s stock but purchased prior to the issuance of the Regulation. The word "label" is not restricted to a gummed sticker. A tag or any other device may be attached to the vacuum cleaner, but in such a way as to enable purchasers to examine it without difficulty.
Violations and Evasions
Purchaser required to trade in a used cleaner - trade in allowance. Certain sellers of new and used household vacuum cleaners require that the purchaser trade in a used vacuum cleaner and in some cases require that a specified brand or model be traded-in. These sellers* refuse to sell to purchasers who are unable or refuse to turn in a used cleaner. It is not e violation of Regulation No. Ill, or of Regulation No. 294 (Used Household Vacuum Cleaners and Attachments for Used Household Vacuum Cleaners) for the seller to refuse to sell to such purchasers. However, when the purchaser does turn in a used cleaner, the seller of the new vacuum cleaner may not receive more than the maximum price under Regulation No. Ill, which must include a fair allowance for the traded-in cleaner. The fair allowance for the traded in cleaner is the dollar value of the used cleaner. Regulation No. 294 specifies the minimum trade-in allowance (75% of maximum wholesale "as is” price) when a used cleaner is traded in for another used cleaner, see Section 1370.83.
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Maximum Price Regulation No. 116
CHINA AND POTTERY
Price Determination
Discount granted by mistake. A seller customarily allowed his purchasers a 2% discount for payment within 16 days. One company customarily received a 5% discount, but the seller added a plus differential to its price so that the net prices for the company as well as other purchasers were the same. Owing to a clerical error, the plus differential was omitted from the invoices during the base period and the company actually received a 5% discount. Even though the seller used different methods of quoting prices, his practice was to charge the same net prices to all purchasers including the company. The granting of a 5% discount by mistake did not establish the company as a separate or distinct class of purchaser. Hence the seller need not continue the 5% discount. However, he must extend the 2% discount to the company and other purchasers who are members of the same class.
Definitions
’’Art pottery" includes predicts of the general nature of vases, flower bowls, bric-a-brac, figurines and lamp bases.
Maximum Price Regulation No. 139
USED HOUSEHOLD MECHANICAL REFRIGERATORS
Applicability
Use by buyer. The sale of a used mechanical refrigerator of 10 cubic feet capacity designed for use in homes and as an auxiliary box for commercial users is subject to the Regulation, irrespective of the use to which it is put by the purchaser, since it was designed primarily as a household refrigerator.
Sale ty bank, finance company, etc., under a chattel mortgage. The sale of a repossessed used household mechanical refrigerator by a bank, finance company or other lending institution under a chattel mortgage is covered by the Regulation.
Sale of refrigerator placed by owner on floor of appliance dealer. Where a household refrigerator is placed by the owner thereof on the floor of an appliance dealer and sold by the dealer for the owner, the sale is subject to the Regulation, since such sale by the dealer is "in the course of trade or business" within the meaning of the Regulation, irrespective of whether the dealer acts for himself or as agent for the owner.
Ice cream cabinets. See page 4:5.
Violations and Evasions
Sale of "as is" refrigerator with reconditioning by seller. The sale of an "as is" refrigerator by a reconditloner, with the sale contingent upon the buyer’s willingness to have the reconditioning done by the seller, is a violation of the Regulation, if the "as is" price plus the reconditioning charge exceeds the maximum price for the reconditioned refrigerator.
Sale after default by conditional vendee. In August of 1941, P purchased a new mechanical refrigerator from S under a conditional sales contract which contained the usual provisions regarding title, forfeiture of payments and right to recapture the refrigerator. P has now defaulted on his installments, leaving a balance due of
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>72.84« S desired to enter into an agreement with T whereby T, upon payment of the balance due, will be permitted to exercise S’s right to recapture the refrigerator from P, and to gain title in himself. The maximum price of the item, as a used mechanical refrigerator under Regulation No. 139, is only >22.
The transaction between S and T involves the sale of a used mechanical refrigerator. Therefore, the consideration for it may not be in excess of the maximum price for the refrigerator under the Regulation, i.e. >22. The result would be the same if the transaction were framed as an assignment of P’s right to pay the balance instead of as an assignment of S’s fright to recapture the refrigerator.
Maximum Price Regulation No. 158
RESALE OF WAR BICYCLES - DISTRIBUTORS AND DEALERS
Price Determination
Carrying charges. A dealer may add a carrying charge to the maximum price established by the Regulation, not in excess of his customary credit charges. The customary free time during which credit charges have not. been made should be continued, and the receipt to the purchaser should specifically set forth any additional charge for the extension of credit.
Retail stores owned by wholesaler. A company sells war bicycles at both wholesale and retail. Its retail sales are made through company-owned retail stores; its wholesale establishments sell to company-owned stores and to independent affiliated retailers^. The company-owned stores and the affiliated stores customarily sell at the same prices.
Maximum Price Regulation No, 162
CEILING PRICES FOR THE SALE AND RENTAL OF USED TYPEWRITERS
Price Determination
Sale in which two dealers participate. In the sale of typewriters to a consumer in which two dealers participate, the first dealer supplying the typewriters to a customer of the secend dealer who assumes the guarantee to the customer, the customer cannot be required to pay more than the maximum retail price specified in the Regulation. The extent to which the dealers share the profit on the transaction is not controlled, since there is no sale as between the two dealers•
Monthly payment for three-month rental. The maximum price for the rental of used typewriters is established on the basis of the period for which the rental is made, regardless of the time of payment. Thus, where a company rented typewriters for a period of three months and payment was made on a monthly basis, the applicable rate is that for three months.
Maximum Price Regulation No. 263
NEW PHONOGRAPH RECORDS AND RECORD SCRAP
Applicability
Sale of records listed in a former manufacturer's catalogue for 1940. A company is the owner of the right to use a former manufacturer's name on phonograph records, from
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which a number of new pressings are to be made. The manufacture of the records was discontinued in 1941, and the manufacturer disposed of all its stock of records by January 1, 1942. In March 1942 no sales were made by the former manufacturer or distributors of the records, but some sales were still being made by retail stores. The last catalogue for these records was printed in 1940. The Regulation does not apply to sales by the company of the new pressings since the manufacturer’s 1940 catalogue is not the "manufacturer’s catalogue during March 1942",or "manufacturer's catalogue in effect during March 1942;" the General Maximum Price Regulation applies.
Imported phonograph records. The resale of imported phonograph records in this country is not covered by the Regulation; the General Maximum Price Regulation applies.
Price Determination
Mail order house - postage. Where a dealer sells new phonograph records on a retail mail order basis, he may require the customer to pay the postage in addition to the maximinn price of the records provided that the amount of the postage is separately stated.
Discounts "generally in effect" uttring base period. The Regulation requires manu-facturers and distributors to maintain discounts "generally in effect" during March 1942 to a purchaser of the same class, Section 1392.54(a). The use of the term "generally in effect" in this section permits a manufacturer or distributor to discontinue temporary or special discounts granted to a few favored purchasers and to allow such purchasers to pay a price which is as high as that generally paid by purchasers of the same class.
Violations and Evasions
Scrap records required to be turned in. It is not a violation of the Regulation in selling new phonograph records to require that scrap records be turned in, even though no such requirement was made during March 1942, provided that the required allowance is made for the scrap records, see Section 1392.51(b).
Maximum Price Regulation No. 294
USED HOUSEHOLD VACUUM CLEANERS AND ATTACHMENTS FOR USED HOUSEHOLD VACUUM CLEANERS
Applicability
Repossessed vacuum cleaner. Where a purchaser of a new household vacuum cleaner is unable to complete payments on the cleaner which he has used in his home, and the seller repossesses the cleaner for the purpose of reselling it, the cleaner is subject to Regulation No. 294 as a "used household vacuum cleaner" under Section 1370.79(a)(7).
Sale not "in the course of trade or business". A person who sells a used vacuum cleaner is subject bo the Regulation whether or not the sale is made in the course of trade or business. The phrase "in the course of trade or business" as used in Section 1370.71 refers only to purchasers of used vacuum cleaners.
Price Detemination
Charge for additional work in rebuilding a used vacuum cleaner. A company performed the 14 requirements for a "rebuilt" vacuum cleaner and also performed a buffing, polishing, finishing and painting job. An additional charge for this work may not be added to the maximum price. The 14 items listed in the Regulation are the minimum requirements for rebuilding a used vacuum cleaner.
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Violations and Evasions
Purchaser required to trade in used cleaner-trade in allowance. See page 4:7.
Maximum Price Regulation No. 429
CERTAIN USED CONSUMER DURABLE GOODS
Applicability
Factory rebuilt musical instruments. The sale of factory rebuilt musical instruments other than pianos is covered by the Regulation, see Section 1 (i).
Used musical instruments. Used radios and used radio-phonograph combination sets are not used "musical instruments” within the meaning of Section 1 (i), and therefore are not covered by the Regulation; the General Maximum Price Regulation applies.
Exempt sale - wholesale sale. The sale of a used frozen food cabinet is covered by section l(m) of the Regulation. Where the sale is made to a person who is engaged in the business of renting such cabinets it is not exempt as a wholesale sale within the meaning of section 4a(4), since a purchase for the purpose of rental is not a purchase for the purpose of "reselling”.
Maximum Price Regulation No. 476
LUGGAGE
Applicability
Luggage items excepted from WPB Limitation Order L-284. Every sale of leather or non-leather luggage, whether of newly purchased items or of stock already on dealers’ shelves, is subject to the Regulation, except small leather goods, such as billfolds key containers, cardcases, and the like. While the War Production Board’s Limitation Order L-284 does except from its control certain very low-priced articles of luggage, sales of all such items are still covered by the OPA regulation.
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COTTON AND SYNTHETIC TEXTILE PRODUCTS
Price Schedule No. 7
COMBED COTTON YARNS AND THE PROCESSING THEREOF
Applicability
General. The Schedule is applicable to (a) the seller and the purchaser of combed yarn, except where specifically excluded, and (b) the service of mercerising, bleaching, and/or gassing of combed yarn.
Intercompany sales. The Schedule applies to intercorporate sales, i.e,, sales between the various affiliates and subsidiaries of a corporation.
Eyed yarn is not subject to the Schedule.
Gassed plied yarn is subject to the Schedule even though unmercerized and unbleached.
Gassed single yarn is not subject to the Schedule.
Price Determination
General. The Schedule establishes maximum prices in dollars-and-cents. The maximum prices for sales by producers include freight up to one oent per pound to the purchaser’s place of business, and the maximum prices for sales of stock yarn are f.o.b. the seller’s shipping point. "Stock yarn" is defined in footnote 1 of Section 1307.12(b)
(l)(ii).
Purchase by war procurement agencies. The maximum prices for imported combed yarns listed in Section 130?. 12, Table 1/ Column B, apply not only where the purchase is made by war procurement agencies, but also by any purchaser who has been designated by a war procurement agency as its agent for making the particular purchase. Agency designation« may be used by the Army and Navy even though they are the consumer of a product made from the yarn, rather than of the yarn itself, as for example, where the army buys cloth from a weaver who in turn has to buy yarn from a spinner. OPA has also ruled that agency designation can be used to procure yam for officers uniform cloth, even though the Government does not buy the cloth or the uniforms; also, that a thread converter can use agency designation to replenish his stock where he makes a sale of thread out of stock to a uniform manufacturer.
Premiums
Premium for "base-grade yarn." The description of "base-grade yarn" does not cover yarns which are put up to meet guaranteed dimensions. A premium may, therefore, be charged in the amount of the actual additional cost of a put-up, of guaranteed size required by a purchaser, regardless of the size of the cone or tube used.
Premium for combed yarn. The 6% premium for combed yarn sold to a manufacturer or converter of thread for use solely in the manufacture of thread, Section 1307.12(d) (4)(vii)(o), is applicable if the seller receives a written s tatement from the buyer that the yarn is to be used solely in the manufacture of thread. Thus, the premium may be charged even though such buyer does not manufacture the thread himself, but buys the yarn for purposes of resale to a manufacturer, provided the second buyer also certifies that the yarn is to be used solely in the manufacture of thread.
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Violations and Evasions
Buyer's responsibility under contracts made prior to December 24, 1941. In the case of contracis made prior to December 24, 1941, the buyer must be satisfied under all the circumstances that the payment of the premium is not an evasion, and that the premiums charged are based upon actual cost. If the premiums appear to be excessive, the buyer is put upon notice and should investigate them as carefully as possible. The buyer, before payment of the premium for special qualities of grey combed cotton yarns, should obtain precise specifications as to the special qualities involved in the yarn, showing if possible the sum charged for each type of special quality. If under the circumstances, and based upon the buyer's experience in the business, it is his judgment that the price charged as the premium for each special quality involved is reasonable, and in line with what he believes the actual cost should be, he may accept the seller's word that the premiums are based upon actual cost. In a doubtful case, the buyer should obtain an affidavit from the seller and report the facts to OPA for determination of the permissibility of the premium.
Escalator clause in contracts. A contract under which the price is to be the maximum price in effect at a future date (e.g., date of delivery), is a violation of the Schedule.
Definitions
"Combed yarn" means grey and (unless otherwise specified) mercerised, gassed, and/or bleached combed cotton yarn of all qualities and specifications of domestic yarns in numbers up to 120s, inclusive, and includes imported combed yarn unless otherwise specified in numbers up to 180s, inclusive.
Maximum Price Regulation No. 11
FINE COTTON GOODS
Applioability
Jobbers' recognised distributive functions. A purchaser of grey goods from a mill, for a customer's account, who pays cash therefor and collects cash immediately from his customer, allowing for himself a margin of profit for services rendered by him for taking charge of details of the transaction, and assuming the risk of obtaining merchantable goods, is a jobber, performing a recognised distributive function. This rule does not apply if the purchaser is chiefly engaged in a straight converting business or frequently performs the finishing process at his own plant and charges therefor.
Jobbers, wholesalers - not recognised distributive functions. Sales by one wholesaler or jobber to another wholesaler or jobber are, presumptively, sales not in the performance of a recognised distributive function, since the sale will not carry the goods forward to the next stage in the distributive process.
A salé by one manufacturer to another manufacturer is not, presumptively, in the performance of a recognised distributive function, because it is a sale at the same level or stage, and does not carry the goods to the next stage in the distributive process. Therefore, a manufacturer of grey goods who buys from other manufacturers, and resells the goods to the manufacturing trade, is subject to the Regulation.
Jobber to jobber sale. See page 5:9.
"Delivered." Where goods are delivered by the seller before the effective date of the Regulation to a common carrier, not owned or controlled by the seller, for shipment to the purchaser, they are regarded as delivered for the purpose of the Regulation and the Regulation does not apply to the transaction.
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Converter of fine cotton goods - finished goods. Sales to a converter or finiaher by all persons, including wholesalers, jobbers, and retailers, are subject to tne Regulation» A converter is a merchant who buys grey goods from mills, finishes them in his own plant, or has them sent to a finishing plant to be finished according to his instructions, and sells them as finished goods either to the cutting trades or, through dealers, to household consumers. "Finished goods" are those which have been dyed, bleached, printed, napped, or similarly prepared for ultimate consumption according to specifications given by the converter. A converter may also perform the function of a jobber, and his sales as a jobber are not subject to the Regulation except as otherwise provided.
Converter. One who buys grey goods, has them printed and then sells them, is a converter even though he has only one customer, no employees, and no unsold inventory. Accordingly, purchases by him are subject to the maximum prices established by Schedule No. 35 (Carded Grey and Colored-Yarn Cotton Goods) and Regulations Nos. 11 and 118 (Cotton Products).
Sale by converter to an embroiderer. Sales of cotton grey goods by a converter to an embroiderer in the performance of a recognized distributive function are exempt from the Schedule, provided that the goods aré not excess stocks acquired by him for his converting business, and suoh jobbing business is proportionately no more than that customarily done in the past.
Price Determination
General. The Regulation established maximum prices in dollar-and-oents, f.o.b. seller's point of shipment.
Definitions
"Delivered." See page 5:2
Converter. See page 5:3
Not converters or finishers. The following have been held not to be converters or finishers under the Regulation:
(a) A manufacturer of awnings;
(b) A person performing the service of coating cotton grey goods with rubber or a similar composition, since suoh service is not an operation normally carried on by a converter or finisher;
(c) Embroiderers.
Dimities are fine cotton grey goods and are within the Regulation.
Jobber. See page 5:2, Jobbers' recognized distributive functions.
Finished goods. See page 5:3» Converter of fine cotton goods - finished goods.
Price Schedule No. 23
RAYON GREY GOODS
Applicability
General. The Schedule applies to the seller and buyer of rayon grey goods.
All constructions of rayon grey goods, whether or not enumerated in the Schedule, are covered.
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Seconds and shorts. The Schedule covers all sales of rayon grey goods irrespective of quality. Hence, the sale of seconds and shorts of rayon grey goods is subject to the Schedule.
Broker. A broker may not sell or offer to sell a construction of rayon grey goods at a higher price than the maximum price provided in the Schedule, whether or not he has title to the goods, and whether he acts on behalf of a disclosed or undisclosed principal.
Price Determination
General. The Schedule established maximum prices in dollars-and-oents, f.o.b. seller * s mill•
Unlisted constructions. Maximum prices for constructions not specifically listed must be in line with the maximum price for the nearest related listed construction set forth in the Schedule.
Burling and sewing. A purchaser of grey goods, in a state requiring burling and sewing (inspecting and finishing worsted fabrics prior to delivery in the grey state), may add his cost of burling and sewing, even though the fabrics were purchased as first quality material. However, his selling price for the grey goods, plus the cost of burling and sewing may not exceed the maximum prices for goods upon which these operations have been performed.
Discounts. The grade or source of yarns to be used in manufacturing rayon cloth has not been specified in the Schedule for the reason that one manufacturer may make a very acceptable cloth with inferior yarn, properly warped and woven, whereas another mill, using first quality yarn may make a less desirable quality, due to poor workmanship. Therefore, where yarns, through processing by the manufacturer, are made serviceable for the production of a standard first quality cloth, the goods are not substandard and no discount need be made.
Violations and Evasions
Barter or exchange. In a barter or exchange of specific lots of grey goods for other fabrics, tbe barter must be on the basis of the ratio between the maximum prices of the goods involved. An exchange of goods upon "premium values" over and above the maximum prices, assigned to the goods by the persons making the exchange, is not based upon such a ratio and hence violates the Schedule.
Records and Reports
Reports by commission weavers. Section 1337.6 requires all manufacturers to make reports. Since commission weavers actually manufacture goods, they are also covered by the section and their reports should bear a notation that they are commission weavers.
Fiscal month basis. The Office of Price Administration has permitted the filing of reports on basis of a fiscal month, in order not to interfere with the accounting or record-keeping system of the manufacturer of rayon grey goods. However, such a report must show the exact period of time covered by the report.
Maximum Price Regulation No. 33
CARDED COTTON YARNS AND THE PROCESSING THEREOF
Appiioability
Dyed yarn is not covered by the Regulation.
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Sale for use as wrapping twine or for resale for ultimate use. The sale of the yarn by persons, other than producers, for use as wrapping twine, or for resale for ultimate use as wrapping twine, is not covered.
Hemp twine. The sale of hemp twine or hop twine made of hemp is exempt from the Regulat ion.
Sewing bag twine. The sale of sewing bag twine is subject to ths Regulation.
Price Determination
Commissions
Broker * s commissions. The maximum prices include all commissions, therefore no broker’s commission may"T>e collected from the purchaser in addition to the maximum prices.
Violations and Evasions
Open price clause. It is a violation of the Regulation to sell or offer to sell carded cotton yarns for future delivery at the maximum price in effect at the time of delivery.
Price Schedule No. 35
CARDED GREY AND COLORED-YARN COTTON GOODS
Applicability
General. The Schedule is applicable to sales and purchases of carded grey and colored-yarn cotton goods of the types and specifioations listed in Appendix A. Sales by wholesalers, jobbers, or retailers in the performance of a recognized distributive function are not covered. However, sales to converters or finishers and sales by manufacturers, or an agent of the manufacturer are subjeot to the Schedule.
Sales to the U. S. Government or to a Government contractor are subject to the Schedule.
Sale at wholesale level. See page 5:11.
Pound goods. See page 5:10
Jobber to jobber sale. See page 5:9
Jobber’s recognized distributive functions. See page 5:2
Jobbers, wholesalers—not recognized distributive functions. The following have been held not to be Jobbers win the performance of a recognized distributive function" within the meaning of that tena in Section 1316.51:
(1) Sales by a department store of grey cloth to a bag manufacturer. (If the grey cloth is not normally sold by the department store in the ordinary course of its business, the sale is subject to Regulation No. 204.)
(2) A manufacturer of buffing and polishing wheels who occasionally sold cotton sheeting in the full bale to dispose of excess inventory, and sometimes to make profit.
(3) Sales by one wholesaler or jobber to another wholesaler or jobber are, presumptively, not sales in the performance of a recognized distributive function,
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since the sale will not carry the goods forward to the next stage in the distributive process.
(4) Sales by a wholesaler of overalls and aprons, made of cotton drill, denim or duck, who pays the manufacturer thereof the cost of the materials plus the cost of manufacture, and then sells the left-overs as remnants, since he is merely engaging in a salvaging operation to reduce his cost.
(5) A sale by one manufacturer to another manufacturer, is, presumptively, not in the performance of a recognized distributive function, because it is a sale at the same level or stage and does not carry the goods to the next stage in the distributive process Therefore, where a manufacturer of grey goods also buys grey goods from other manufacturers and resells the goods to the manufacturing trade, he is subject to the Schedule
Converter of fine cotton goods. See page 5x3
Not Converters or finishers. See page 5:3
Sale by converter to an embroiderer. See page 5:3
Grey sheeting. See page 5:10
Sale by jobber to converter-jobber. The sale of grey fabric by a jobber to a converter-jobber is covered by the Schedule, unless (a) the sale is made in the performance of a recognized distributive function and (b) the goods are jobbed, rather than Converted, by the converter-jobber. Where the sale is excepted from the Schedule, the General Maximum Price Regulation applies.
Price Determination
General. The Schedule establishes maximum prices in dollar-and-oents, f.o.b. the seller*s point of shipment.
Calculation of maximum price in round figures. Where maximum prices are established in even oenks and hall cents on a poundage basis, the seller should not "round-off" the yardage price, e.g., charging 20.51/ per yard on 4-leaf twills where the maximum price for four-leaf twills is 20.508/ per yard.
Distress sale of exported merchandise stopped in shipment. A distress sale of exported merchandise, which was stopped in shipment by the outbreak of war, and returned to the United States and placed in storage, is not a sale made "in the performance of a recognized distributive function," and therefore is subject to the Schedule.
Charge for yardage loss. Charges by a converter to a finisher for yardage loss occurring in the finishing process is, in substance,erry, 6 plum and 6 raspberry, the maximum price for the assorted case is 1/2 of the maximum price for a case of strawberry, plus 1/4 of the maximum price per case of raspberry and 1/4 of the maximum price per case of plum.
Definitions
"Packer-grower" includes a packer who also performs some of the functions of a grower, such as picking a crop which he purchased in the field.
Maximum Price Regulation No, 255
PERMITTED INCREASES FOR WHOLESALERS OF CERTAIN FOODS.
Applicability
New container types or sizes. If a commodity subject to the Regulation is a new one for the wholesaler only as to container type or size, he prices under Section 1351.703(e), if he lacks either a "base price" or a "permitted increase". If the container is new in other respects he prices under Section 1351.703(f).
Price Determination
New container types or sizes. See page 9:4
Maximum Price Regulation No. 256
PERMITTED INCREASES FOR RETAILERS OF CERTAIN FOODS.
Price Determination
Establishing maximum price. Before a retailer can "establish" a maximum price for an item under Section 1352.205(b) he must have: (a) received delivery of a customary amount of the item being priced after the applicable date specified in the Section; and (b) determined a maximum price on the basis of a notice of "permitted increase* received from his supplier or the manufacturer or producer pursuant to Section 1351.203(a)(2), or if the item is a new one for which he lacks either a base price or a "permitted increase", he must have determined a maximum price pursuant to Section 1351.203(c).
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Maximum Price Regulation No. 262
SEASONAL AND MISCELLANEOUS FOOD COMMODITIES
Applicability
Christmas cookies. Regulation No. 262 covers Christmas cookies sold at retail by the producer. A retail sale, by one other than a producer, is covered by Regulation No. 250 (Sales of Certain Seasonal Food Products at Retail).
Boned chicken. The Regulation applies to boned chicken and turkey canned in glass.
Fruit pies. The Regulation does not apply to the sale of pies. It applies to fruit pie fillings, when sold as such. Accordingly a baker of fruit pies who makes his own fruit pie fillings and pastry fillings is not a "producer" subject to the Regulation.
Pastry fillings. The Regulation applies to pastry fillings of all kinds and not merely to fruit pastry fillings.
Price Determination
Freight charges as a separate item cannot be added to the mark-up, since they are part of and included in the mark-up as computed under Section 1351.954(c) and 1351.955(b). When commodities are to be sold on a basis different from that in effect during the base period, prices must first be figured on the same basis as in the base period and then revised to reflect the change by adding or subtracting current delivery costs.
Maximum Price Regulation No. 270
DRY EDIBLE BEANS AND CERTAIN OTHER DRY FOOD COMMODITIES
Classification
"Soldier beans" are identical with yellow eye beans. Therefore, a country shipper determines his maximum price for "soldier beans" under the Regulation as yellow eye beans. Regulation No. 421 applies at the wholesale level, and Regulation No. 422 and 423 at the retail levels.
Maximum Price Regulation No. 271
POTATOES AND ONIONS
Applicabi1ity
White potatoes. The Regulation applies to all white potatoes used for human consumption; it does not apply to sweetpotatoes or yams, or seed potatoes when sold in 100-pound bags.
Sales to armed forces. The Regulation applies to the sale of potatoes and onions to the armed forces; such transactions are not "exempt sales" at retail within Seotion 4.
Dehydrators. The sale of potatoes by country shippers to dehydrators, whether in bulk or sacked and cleaned are governed by the Regulation.
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Potato chips. The Regulation applies to the sale of potatoes to a potato chip manufacturer': Sales by a farmer to a potato chip manufacturer are sales by a "country shipper" to an "industrial user".
Bermuda onions are dry onions, and therefore governed by the Regulation, Section 1(b). the Regulation does not apply to green onions of the small bulb type with long sprouts, known as spring onions or leeks.
Potato onions are green onions, not dry onions, and therefore not subject to this Regu-lation or any other Regulation. They are exempt from price control.
Definitions.
"Boiler" onions, etc. The terms "white boiler" and "pickier onions", Table II, footnote (1) (d), mean the size of the onions (U.S. Department of Agriculture); they do not refer to the grade. "Boilers" are 1^ inch and smaller in size, picklers are 1 inch and smaller. Both may be of any standard "grade" under Section 8(a)j(9).
Maximum Price Regulation No. 285.
IMPORTED FRESH BANANAS, SALES EXCEPT AT RETAIL.
Applicability.
Sales to the armed forces. Sales of bananas to the armed forces are subject to the Regulation; such sales are not sales "at retail".
Price Determination.
Wholesaler - "largest single purchase". The "largest single purchase" by a wholesaler during the seven days prior to Monday of each week, Section 1351.1253(b)(2), refers to the particular kind of fresh bananas purchased, i.e., the country or origin of the bananas. Thus, the purchase of Guantemalan bananas, during such seven day period cannot be used to determine the wholesaler's maximum price for Mexican bananas.
"Greens" and "turnings”. The Regulation makes no differentiation between "greens" and "turnings", and hence the maximum prices established for the sale of fresh bananas by the importer are applicable, regardless of whether they are "greens" or "turnings”. Since the wholesaler's maximum price is the importer's maximum price at the port’ of entry, plus freight and applicable mark-up, he does not differentiate between "greens" and "turnings” in determining his "largest single purchase".
Bananas damaged in transit. No upward adjustment may be made in the maximum price for bananas damaged in transit. The markup allowed wholesalers included in allowance for such shrinkage as damage in transit.
Violations and Evasions.
Importer selling in hands and boxes. An importer may not charge for breaking into "hands” and repacking in boxes and crates. The Regulation contemplates that most sales by an importer shall be on the stem basis and for this reason no provision is made for an importer to break into "hands" and sell in boxes and crates. This function is usually performed by a wholesaler. The breaking into hands by an importer, repacking in boxes and crates., and delivering 1800 pounds for which purchaser is billed for 2200 pounds on the stem is a violation of the Regulation.
A wholesaler may not include a boxing charge in his ’’actual cost of transportation", Section 1351.1364(6). Such a charge is not a part of the cost of transportation, but is included in the margin provided for wholesalers. The Regulation contemplates that the service of breaking into "hands" and repacking in crates or boxes will be performed by the wholesaler, and the applicable mark-up for sales in hands will cover such items as
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cost of packing and shrinkage.
Maximum Price Regulation No. 306
CERTAIN PACKED FOOD PRODUCTS
Price Determination
Intra-factory hauling charges
_____________________ ______ Hauling charges incurred from an outlying plant to a central shipping plant may be added £o the maximum price of the canned commodities covered by the
Regulation. However, the charges must not exceed the lowest available transportation costs;
re-handling charges may not be
added.
Violations and Evasions
"Joint account" arrangements. See page 9:7.
Definitions.
"Evergreen corn" crossed with another variety is considered "evergreen". The maximum price is determined under Section 1341.584(c).
Maximum Price Regulation No. 409
FROZEN FRUITS, BERRIES AND VEGETABLES (1943 PACK AND AFTER)
Price Determination.
Storage charges. The first month’s storage, which is included in the maximum price for "items sold on a no-storage basis" Section 3(j) commences when the item is first placed in cold storage; it does not start immediately after the item is actually frozen.
Violations and Evasions.
"Joint account" arrangements. A grower of raw materials sells his products to a packer for freezing, the grower and packer enter into a "joint account" agreement whereby they are to split the profits realized from the sales of the frozen product. This arrangement is a violation of the Regulation, Section 15(b), beoase the grower receives a price for the products in excess of the maximum as established in the Regulation. This interpretation applies also to Regulation No. 306 (Certain Packed Food Products) and Regulation No. 425 (Fresh Fruits, Berries and Vegetables for Processing).
Definitions.
Blueberries, as used in the Regulation, means blueberries in the form in which they are gen-erally delivered to the packer or processor, clean and free from dirt, stone, stems and any other extraneous matter.
Maximum Price Regulation No. 425
FRESH FRUITS, BERRIES AND VEGETABLES FOR PROCESSING.
Applicability.
Morello cherries are red sour cherries and the Regulation applies when they are sold for processing, Section 3.
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Price Determination
Charges for co-operatives' orates. A grower may not add to the maximum price of fresh berries costs incurred in the assembling and use of crates loaned to him by co-operatives. The grower's maximum price includes all factors of cost.
Violations and Evasions
Employing growers as "finders". It is a violation of the Regulation, Section 9, for a processor to employ a grower as a "buyer" or "finder" on a commission basis if the total amount paid to the grower exceeds the maximum price for berries as established in the Regulation.
"Joint account" arrangements. See page 9:7.
Maximum Price Regulation No. 426.
FRESH FRUITS AND VEGETABLES FOR TABLE USE, SALES EXCEPT AT RETAIL
Applicability
Unharvested grapes. The Regulation does not apply to unharvested grapes in the field. It applies to grapeFwhich are picked, packed, prepared for shipment and sold whether f.o.b. the shipping point, or delivered to any wholesale raoaiving point-
Price Determination
Broker's fees - buyer. A buyer of table grapes may pay broker's fees to an agent up to an amount that does not exceed the maximum price for the broker's services under Regulation No. 165 (Services). However, on resale, the buyer may not add any broker’s fees to the maximum price.
in transit. Storage charges incurred in transit, are not part of "freight" under the definition, Section 8(a)(7), and therefore, they may not be included in transportation costs.
Violations and Evasions
Piecemeal l.o.l. »^ipments to fill carlot orders. Wholesalers purchase oarlot quantities of apples. The shipper does not sell the apples In oarlots but supplies equivalent quantities in several l.o.l. shipments, such as loading 74% to one buyer and 26% to another. The shipper charges the l.o.l. maximum price. A refusal to ship carlots of apples where oarlot quantities are sold is an evasion of the Regulation. Moreover, cars or trucks sold to more than one purchaser are "pool cars", Section 1(f)(1), and a shipper may charge no more than the carlot market maximum price for "pool oars".
Growers are selling carlot quantities of apples f.o.b. shipping point to chain store buyers, but are charging the l.o.l. maximum price for sales to retailers. The apples are billed 74% to the chain buyer and 26% to another person (usually associated with the buyer in the transaction). This is a violation of the Regulation, Appendix G(d^, whioh establishes maximum prices f.o.b. shipping point for growers. Besides the method of billing is an evasion under Section 11.
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Maximum Brice Regulation No. 427
PROCESSED BEANS, MACARONI PRODUCTS AND NOODLE PRODUCTS
Applicability
Processed macaroni products. The Regulation applies only to those macaroni products and noodle products which have been cooked and combined with sauce. Regulation No. 326 (Macaroni Products and Noodle Products) applies to unprocessed macaroni and noodle products.
Baked beans sold in bulk by retailers. The Regulation covers processed beans which have been ^cooked and packaged . Section 18(a). Baked beans, prepared and sold in bulk by a delicatessen operator from a temporary receptacle, are not "processed beans" within the meaning of the definition, and therefore not subject to the Regulation; the General Maximum Price Regulation applies.
* Maximum Price Regulation No. 476
DRIED FRUITS, 1943 AND LATER CROPS
Applicability
Deteriorated raisins, etc. Deteriorated inedible raisins and figs, screenings, heel clogs and sweepings are not covered by the Regulation; the General Maximum Price Regulation applies.
Maximum Price Regulation No. 488
PICKLES AND CERTAIN PICKLED PRODUCTS
Definitions
"Per bushel". The permitted increase for raw materials "per bushel". Section 3(a)(1^ is based upon 48 pounds per bushel, as determined by the Department of Agriculture.
600780 0 - 44 - 10
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GROCERY PRODUCTS.
Price Schedule No. 16.
RAW CANE SUGARS.
Applicability.
General. The Schedule is applicable to the seller and purchaser of raw cane sugar which is io be further refined or improved in quality.
The purchase by a candy manufacturer of raw cane sugar, to be further processed before using in making candy, is subject to the Schedule.
Price Determination. --——— -------- - ■ •
General. The Schedule establishes dollar-and-cents maximum gross prices for the sale of raw cane sugars of 96 degrees polarization, from (1) off-shore producing areas, and (2) continental United States. Adjustment for polarization is provided.
Insurance. The maximum prices set by the Schedule do not include insurance charges.
Price Schedule No. 50.
GREEN COFFEE.
Appiicability.
General. The Schedule is applicable to the seller and the purchaser of green coffee, ex-
cept (1) sales at retail, (2) sales of less than one bag, and (3) sales in the Territory of Puerto Rico.
Price Determination.
Coffee sold ex warehouse. The maximum price for sales ex warehouse is the maximum price ex dock New York City or other port of entry, plus the cost of putting the commodity into the warehouse and 90 days storage charges which may be added to the maximum prices by the seller who incurred the cost. This additional charge is not limited to importers of the coffee. However, only one warehouse charge may be made and pyramiding of such charges is not permitted.
Blends. The maximum prices for blends of green coffee are computed by making a weighted average of the maximum prices of the various grades of coffee involved. For example, a blend of one part 10/ coffee and two parts 12/ coffee has a weighted average of 34 divided by 3, resulting in a maximum price of 11 1/3/ per pound.
"Port of Entry" has a broader meaning than a description of ports or harbors or other entrance points' by water. The term includes any point of entry.
Transportation and insurance charges. The Schedule permits additions to the basic maximum price for increases in ocean freight and marine and war risk insurance charges since December 8, 1941 and for the cost of putting coffee into a warehouse, if such increased charges and costs were actually incurred by the domestic sellers. These additions cannot be made by an importer who paid the charges on behalf of his foreign shipper, and deducted the amount so paid from the amount due the foreign shipper. A person who buys from a domestic seller who incurred these costs, and any subsequent purchaser, may on resale, add such costs to his maximum selling price to the extent that the costs were passed on to such person or subsequent purchaser.
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Demurrage charges.
Question: May an importer of green coffee pay demurrage charges, and may he add such charges to his maximum selling price?
Answer: Demurrage charges may be paid by the importer, but he may not add them to his maximum selling price. The Schedule provides only for ex dock or ex warehouse prices, neither of which includes demurrage charges, and hence they may not be added.
Definitions.
Invoices - Aged grades of "extra superior" coffee. The following clarification of the clause ’’aged grades of extra suoerior quality* coffee was issued November 24, 1942, (Release OPA - T-342):
To prevent any misunderstanding as to the type or grade of aged coffee eligible for premiums under this clause, OPA today explained that "aged grades of extra superior quality" are those grades which by virtue of special preparation and aging acquired improved qualities sought by roasters prior to December 8, 1941, for use in place of, or to serve the same purpose as, fancy aged coffees from the Netherland East Indies.
Only those grades of the named growths used for this purpose prior to December 8, 1941, and the premiums which they commanded at that time will be recognized today.
•
Invoices covering sales of these "aged grades of extra superior quality" at premiums over the ceiling prices named in the coffee schedule must bear the following certification:
We certify that these coffees are "aged grades of extra superior quality" as defined by OPA and that the premium which has been added to the maximum price named in Revised Price Schedule No. 50 is commensurate with the premium charged prior to December 8, 1941, for coffee of the same grade and of equal quality.
Price Schedule No. 51.
COCOA BEANS AND COCOA BUTTER.
Applicability.
General. The Schedule is applicable to the seller and the purchaser of cocoa beans or cocoa 'butter. Sales of less than one bag of cocoa beans, and of less than one bale of cocoa butter, and sales of cocoa butter deodorised or specially treated for pharmaceutical or cosmetic uses, are exempt.
Resale. Although the maximum prices of the Schedule are not applicable to products de-livered after the effective date pursuant to a contract made prior thereto, the Schedule is applicable to subsequent resales of such products.
Sale of imported cocoa butter. The Schedule applies to the sale of both domestic and imported cocoa butter.
Price Determination.
General. The Schedule establishes dollars-and-cents maximum prices ex dock New York City for the sale of cocoa beans. Provision is made for sales ex dock any other port of entry and for sales ex warehouse.
"Arrimo charges". Charges which are levied locally at the port of export in a foreign country, for the use of a foreign wharf and known as "arrimo charges", cannot be added to
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the maximum price of a commodity, since these charges are not considered an increase in the ocean freight rate.
Transportation and insurance charges. See page 10:1.
Interest charges. A seller may continue an established practice of charging interest on credit purchases although such interest charges increase the selling price beyond the maximum prices fixed by the Schedule. The continuance of this practice does not make the conditions of sale more onerous to the purchaser.
Wharfage and handling charges at southern ports. Shipments of cocoa beans have been divert— ed in some cases from New York to southern ports. The wharfage charges and handling charges incurred after the shipment reaches the dock (placing the cocoa beans in railroad oars, motor vehicles or other vehicles) may be added to the maximum price to the extent that*the charges are actually incurred by-the seller.
Cocoa butter. Section 1351.62, entitled Maximum prices for cocoa butter, applies to both domestic and imported cocoa butter. Therefore, the maximum price for imported cocoa butter, regardless of origin, is 25/ per pound, duty paid, to which may be added only the specific amounts provided for in the Schedule.
Cocoa butter in bales sold in "carload lots". The maximum price for cocoa butter in bales sold in "carload lots1* is 2b cents per pound, Appendix B. Usually 36,000 pounds or more of cocoa butter in bales constitutes a carload. However, where a carload rate can be obtained in a shipment of less than 36,000 pounds, the shipment constitutes a "carload lot" under the Schedule.
Records and Reports.
Billing -Indication of premium qualities. Where a premium for "extra superior" quality is charged, It is desirable for th? protection of the seller that the bill of sale clearly describe the premium qualities.
Price Schedule No. 52.
PEPPER.
Applicability.
General. The Schedule is applicable to the seller and the purchaser of pepper. Sales at rebail and sales of less than one bag are exempt.
Price Determination.
Transportation and insurance charges. See page 10:1.
Warehousing charges. The Schedule provides that in case of sales ex warehouse the cost of putting the commodity into the warehouse may be added to the maximum prices by the seller who incurred the cost. This rule is not limited to importers of the pepper.
Price Schedule No. 60.
DIRECT CONSUMPTION SUGAR.
Applicability.
General. The Schedule establishes dollar-and-cents f.o.b. maximum prices as to sales by primary distributors. Provision is made for maximum delivered prices for sales by primary
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distributors •
Primary distributors - "United States mainland shipping point". The phrase "United States mainland shipping point" referred to in the provisions foir prices for sales of direct-consumption raw sugars by primary distributors. Section 1334.51(b)(1), means the mainland shipping point from which the actual shipment is made. It does not refer to the mainland shipping point customarily used.
Sugar syrup. The Schedule applies to sugar syrup containing 77% sugar solids and 23% water as wdirect-consumption sugar". The maximum price is determined under Section 1334.51(a)(6).
Price Determination
Powdered sugar. Schedule No. 60 applies to powdered sugar as a type of direct-consumption sugar, Seclion 1334.59(b). A primary distributor determines his maximum price by using the base price of granulated sugar adjusted for powdered grade and package differentials as provided in Section 1334.51(a)(6). Regulation No. 422 applies to powdered sugar at the wholesale level; Regulation No. 423 at the retail level. A wholesaler who manufactures or otherwise processes powdered sugar determines his maximum price for sales at wholesale under Regulations No. 422 and 423.
Records and Reports
Forms - invoices. Although the Schedule provides that records containing specified data must be kepi, no provision is made for keeping it on a specified form. Accordingly, the Schedule's requirements will be satisfied if a wholesaler preserves copies of sales invoices, provided that the invoices contain the data required.
Brice Schedule No. 62
CIGARETTES
Applicability
General. The Schedule is applicable to the sale of cigarettes by manufacturers.
New brands of cigarettes. The Schedule does not establish manufacturer's prices for new brands of cigarettes. Therefore, manufacturer's prices for new brands marketed after December 26, 1941 are subject to the General Maximum Price Regulation.
Price Determination
General. Maximum prices are established by the Schedule at December 26, 1941 prices, ex-cept as to regular size economy cigarettes for which dollar-and-oents maximum prices are established.
Advertising allowances. A manufacturer may discontinue an advertising allowance which had been granted io distributors on the base date since such an allowance is not a price discount, but is a payment made for services rendered. Since the distributors may now discontinue the services, the terms and conditions of sale will not be more onerous to the purchaser than those prevailing prior to the effective date of the Schedule.
Price Schedule No. 91
TEA
Applicability
General. The Schedule is applicable to the seller and the buyer of tea. Sales of tea,
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blended or unblended, in packages of less than half chest lots are exempt.
Green tea is covered by the Schedule although not specifically listed except for China greens which were included in Amendment No. 3 to the Schedule.
Packaging. Where a ton of tea is packed in 1 lb. packages by the seller, the sale is not subject to the Schedule. If, however, the packaging is to be done by the buyer after the tea has been sold to him in bulk, the sale in bulk is subject to the Schedule.
Price Determination
General. The Schedule establishes dollar-and-oents maximum prices ex dock New York City for specified grades of tea. The maximum prices for any other grade may be generally stated as the price in New York City on October 15, 1941. Provision is made for sales ex dock any other port of entry and for sales ex warehouse.
Transportation and insurance charges. See page 10:1.
Warehousing charges. The Schedule provides that in case of sales ex warehouse, the cost of putting the commodity into the warehouse may be added to the maximum prices by the seller who incurred the cost. This rule is not limited to importers of the tea.
Small lot premium. The Schedule permits a premium not in excess of 10% of the maximum price in sales of tea in amounts of ten chests or less. It is a violation of the Schedule for a seller to spread out his sales in lots of 10 chests or less for the purpose of obtaining the premium. The premium is permitted only where the small lot is actually ordered by the purchaser.
Maximum Price Regulation No. 154
ICE
Price Determination
Purchaser of the same class. During the base period, an ice company charged different prices according bo the quantity of ice purchased by its customers. Its customers fell into classes described as domestic, light commercial, heavy commercial and butcher shops. Where a "light commercial" customer now purchases only in the smaller quantities of a "domestic" customer; the ice company may charge the former commercial customer the maximum price for "domestic" customers. However, the ice company's records should show that: (a) during the base period the customer was purchasing an amount compatible with his classification, (b) he is now purchasing an amount substantially less than that which he was purchasing when originally classified, (o) the present amount purchased is incompatible with the rate he has been receiving and (d) the maximum price charged for his present purchaser is compatible with the amount he is now buying.
The above statement does not authorise a change in purchaser classification where the decrease in the quantity of ice purchased is due to seasonal or other customary requirements which the seller has not used in the past as the basis for a change in price or alteration of purchaser classification.
Violations and Evasions
Elimination of platform sales of ice. The Regulation prohibits "changes in the classifi-oation of purchasers of ice** see Secbion 1393.4(b). Therefore, it is a violation of the Regulation for an ice company to discontinue platform sales of ice and to require its plat-form customers to become purchasers on a delivered basis if the company's established price exceeds the platform price plus the actual transportation costs incurred by the ice company.
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Maximum Price Regulation No. 193
DOMESTIC DISTILLED SPIRITS
Applicability
Warehouse receipts. The Regulation is applicable to the sale of warehouse receipts for domestic distilled spirits. The maximum price for such receipt is the maximum price for the domestic distilled spirits covered by the receipt, see Release T-520, dated January 23, 1943.
Price Determination
Improvement or impairment in quality of domestic liquor - new commodity. The following facts relate to improvements and Impairments In the quality of liquor which result in the liquor ceasing to be the "same commodity" or "similar commodity" to that sold in March 1942:
1. A distiller may not obtain an increased price for his product by making an improvement in quality unless:(a) the improvement is significant; and (b) the improvement is shown on the labels.
2. A distiller may not obtain what is in effect an increased price for a product by making an impairment in quality and charging the same price regardless of: (a) the fact that the impairment is not so great that its converse would be recognised as an improvement; and (b) the fact that the impairment is or is not shown on the labels.
The following are significant improvements on quality of domestic distilled spirits:
1. Increase of not less than 3 degrees in proof.
2. Increase of not less than one year in the age of any straight whiskey, increase of more than one year in the age of the youngest whiskey in a spirit, blend, or blend of straight whiskey, or an incx-jase of year in case of brandy. Changes in age above 8 years are not considered a significant improvement in the quality of domestic whiskey.
3. Any increase of 5% or more of the quantity of the whiskey contained in a spirit blend. However, no change will be recognized: (a) when the blend is made up of one type of whiskey and neutral spirits, unless the percentage of whiskey is increased by 5% or more, and (b) when the blend is made up of 2 or more types of whiskey and neutral spirits, unless the percentage of the superior type or types of whiskey is increased in the aggregate by 5% or more.
The following are impairments of quality:
1. Any decrease in proof.
2. Any decrease in age unless the age after the decrease is above 8 years.
3. Any deduction of the percentage of straight whiskey in blends.
4. Changes in types, such as, from straight whiskey to blended and from bottled in bond to free bottling.
Where there is an impairment of quality, the new commodity must be priced by reference to a commodity which has a lower maximum price than the old cooaoodity; the distiller may not use the old commodity, a similar, or a higher priced commodity to determine the maximum price of the new commodity.
Warehouse receipts. See page 10:6.
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Rationing - seller's discounts. The following rules are applicable where distilled spirits are rationed fey a distributor:
(a) General rule. The general rule is that a distributor is only required to give such quantity discount as may be applicable to the quantity delivered on an order even though the purchaser has ordered a greater quantity which would, if delivered, entitle him to a quantity discount under established discount schedules. This rule is subject to the qualification that the seller may not increase his ordinary number of deliveries to the purchaser during a particular delivery period so as to continue to supply the purchaser with the same total quantities as before.
(b) Voluntary rationing plan. The fact that the rationing plan is voluntary in character does not alter these rules. However, any voluntary plan must: (1) have been adopted in good faith for the purpose of distributing the seller's supply among his customers in an equitable manner, (2) be calculated to dispose of all distilled spirits that the seller may reasonably expect to have available within a delivery period, and (3) be applied consistently among all the dealer's customers. The distributor may not use the rationing plan to supply an unreasonable increased number of customers with the commodity voluntarily rationed. Where prior to the institution of the rationing plan the distributor regularly supplied only a certain number of customers, ha cannot now increase that number to include formerly intermittent or irregular customers. The number of customers shall be deemed to be unreasonably increased where irregular customers now are regularly supplied with the rationed commodity. Further, where a customer formerly purchased only certain items which are not now rationed, such customers shall not be permitted to become a regular purchaser of items now subject to the voluntary rationing plan.
(c) Delivery periods. A distributor operating under a rationing plan must also establish reasonable delivery periods. In general, the delivery period should correspond with war requirements or the period for which allotment is made by the supplier. The distributor may not shorten such delivery periods so as to avoid granting the purchase discounts to which the purchaser would otherwise be entitled.
(d) March 1942 discounts. A quantity discount schedule used by a distributor in March 1942 must be kept in force, irrespective of rationing and even though the over-all volume of the distributor's business has been reduced. Thus, if a distributor granted a quantity discount for five case purchases in March 1942, he must continue to give the same quantity discount to a purchaser entitled to a five case allotment under a rationed plan where he buys that quantity under circumstances that would have entitled him to the discount in March 1942. However, if the distributor's rationing plan results in an allotment of only four cases to such purchaser, the purchaser would not be entitled to the five case discount even though he may have ordered a five case quantity.
(e) Accumulation of allotment. Question has arisen as to whether a purchaser may accumulate his allotment for several delivery periods in order to secure in one delivery a quantity sufficient to entitle him to an extra discount. For example, if a distributor previously allowed a discount for fifteen case purchases but now delivers only five oases per month, may the purchaser order fifteen cases at one time with delivery at the end of three months so as to secure the discount applicable to that quantity? In such instance the purchaser is, in effect, placing three orders for five cases with delivery at one time and not one order for fifteen cases; therefore, the seller is not required to give the fifteen case discount.
(f) State laws. These rules do not authorize any practice which is a violation of any applicable state law.
Substitution of imported neutral spirits. Where imported neutral spirits are substituted for domestic neutral spirits, 'the resulting product is "domestic distilled spirits" within the meaning of Section 1420.10(a)(1). The manufacturer may add the permitted allowance in Section 1420.13(a)(l)(iv) for the substitution of the imported neutral spirits.
Taxes.
Tax on domestic distilled spirits. A rectifier may add to his maximum prices only the exact
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amount of increased tax applicable to the quantity of finished product sold. Thus the original cost of the high wines lost in processing, plus any tax paid thereon, is part of the cost of the finished case goods and the increased tax on this outage may not be added to the rectifier's maximum prioe. Under the Regulation such costs must be absorbed by the rectifier.
Increased tax. The seller of distilled liquor may add to the retail price of each "shot" the exact amount of the increased excise tax on the quantity sold, rounded out to the nearest cent. He may also increase the size of the "shot" so that the price of liquor sold plus the increased excise tax on the total quantity, will result in a price that does not contain odd pennies.
Freight tax - monopoly states. Where prices of distilled liquors to monopoly States are quoted on an f.o.b. basis and not on a delivered basis and the prepayment of the freight charge is merely an accommodation, the monopoly State may be required to pay the 3% transportation tax along with the actual freight charges and other charges incidental to delivery.
Violations and Evasions.
Change in terms of payment. The terms of payment are a part of the purchase price of a commodity, and any change in these terms which is onerous to the purchaser, such as a reduction in the net payment period without a corresponding reduction in price, is a violation of the Regulation.
Finder's fee. Payment of finder's fees in connection with the purchase of package domestic distilled spirits is a violation of the Regulation.
\
Maximum Price Regulation No. 231
RAW SPICES AND SPICE SEEDS
Applicabilitya
Chutney. The Regulation does not apply to the sale of chutney.
Purchases made in a foreign country. The maximum prices established by the Regulation "ex dock or warehouse any continental U.S. port of entry" are applicable to spices purchased and received by the buyer in a foreign country and subsequently imported by the buyer into the United States.
War risk insurance - all-rail shipments. The maximum prices for raw spices and spice seeds established in Section 1424.14(d) include the commercial war risk insurance rate effective July 24, 1942. Where, due to prevailing conditions, spices are shipped all-rail, suoh as shipments from Mexico, the entire 15% must be deducted from the maximum prices since there is no war risk insurance on all-rail shipments.
War risk insurance - "extended coverage". An importer of raw spices and spice seeds pur-chased "extended coverage* from the War Shipping Administration for protection against any loss which might be incurred by the landing of the shipment at an intermediate port. Under these circumstances, the importer may purchase extra coverage war risk insurance and add the extra premium to the war risk rate specified in Section 1424.14(d).
Price Determination
Cloves which have shrunk. The Commodity Credit Corporation imported and then stored cloves in a warehouse for over a year. During storage the cloves shrunk.
Question: Does the price of 21/ per pound for cloves, Appendix A, Section 1424.14 (a), apply to the weight of the cloves when imported or to the actual weight at the time of sale?
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Answer: The price of 21£ per pound is on the number of pounds of actual weight at the time the cloves are sold at the warehouse.
Deductions in war risk insurance rates - imported spices. The following clarification of war risk insurance rates was issued November 21, 1942 (Release, OPA-T-332):
"If shipment from the country of origin was made after October 7, 1942, the seller must deduct from the specific prices named in Regulation No, 231 the difference between the highest commercial rates for war risk insurance in effect on July 24, 1942, and the War Shipping Administration rate prevailing on the date of shipment from the country of origin. The result is the seller’s ceiling price."
"The same deduction also must be made on a shipment from the country of origin between August 1, 1942, and October 7, 1942, providing the importer carried a War Shipping Administration war risk insurance policy on the particular shipment."
"These differences in war risk insurance rates have to be deducted from the maximum prices as established under the spice regulation as illustrated:
Cents per pound
Maximum price for Ceylon Cinnamon No. 2..................... 58
If commercial rate war risk insurance on July 24, 1942 was.................................20%
If WSA rate on date of shipment was...............6%
Deduction from maximum price of 58# would be..................................... 14%
____ 8.12
49.88
"The maximum price thus established applies to all sales and resales of the shipment, provided they are made in original import packages. All sellers besides noting the deduction in their contracts and invoices must by a statement on the invoice instruct the buyer to make the same deduction when reselling."
Maximum Price Regulation No, 259
DOMESTIC MALT BEVERAGES
Applicability
Tudor cereal beverage. Tudor General Beverage is a domestic malt beverage within the meaning of the definition, see Section 1420.62(a), and thus subject to the Regulation.
Price Determination
Purchaser who supplies own bottles, etc. A brewery which usually sells beer bottled and in cases sells beer to a purchaser who supplies the crowns, bottles, and cases. The brewery bottles the beer for the purchaser. The maximum price that the brewery may charge for the sale of beer under these circumstances is the same maximum price as that established under the Regulation for beer bottled and sold in cases. However, the brewery must deduct from such established maximumjrice the cost to the purchaser of the crowns, bottles and cases which the purchaser supplies.
Maximum Price Regulation No, 260
CIGARS
Price Determination
"Cut rate" sales. The Regulation does not require a retail seller who previously sold
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cigars as "cut-rate" to continue that practice.
Quantity discount. Where the seller customarily allowed (prior to November 1, 1942, the effective date of the Regulation) a quantity discount based on a percentage of the selling price, he must continue to allow the same percentage of the increased price even though the result is to reduce the seller's previous margin of profit. This does not apply to retailers.
Retailers* multiple unit sales. The retailers' maximum price for multiple unit sales, other than those specially provided for in the Regulation, is determined by multiplying the single unit price by the quantity being sold.
Retailers* customary practice. Where a retailer in the past customarily sold oigars in multiple units at a discount, or by the box, at a price which was less than he now obtains by selling oigars at the multiple or unit price permitted by the Regulation, he need not continue this past practice. Such a price reduction is not a quantity discount, allowance or price differential which the retailer must continue under Section 1359.109(b)(1). However, manufacturers and wholesalers must continue their customary discounts, allowances and price differentials.
Maximum Price Regulation No. 275
EXTRACTED HONEY
Applicability
Extracted honey (Dyoe process). The Regulation applies to all honey except comb honey, and hence applies to honey prepared by the Dyce process.
Jars of part comb and part extracted honey. The Regulation applies to the sale of jars of honey containing part comb and part extracts d honey.
Blend of honey. A blend of syrup composed Of 70% honey and 30% sucrose is not honey within the meaning of the definition, see Section 1351.1319(a)(1) Appendix A, and therefore not subject to the Regulation.
Honey spread. The Regulation applies to all forms of pure honey except honey sold entire-ly in the comb.
Chunk honey, a combination of comb and extract honey, is subject to the Regulation. The addition of a small piece of comb to a jar of extracted honey does not change its identity.
Price Determination
Imported honey - duty. Section 1315.1319(b)(4) establishes the dealer?s maximum selling price for imported honey on an f.o.b. point or port of arrival basis. The duty is included in this maximum price; hence the American dealer may not add it to such price.
Fancy type containers. The maximum prices established by the Regulation apply to all kinds of processed honey, regardless of the type of container in which it is packed. No additions may be made for fancy type containers.
Sales to a post exchange. Sales of honey to a post exchange are sales to a retailer; they are not sales to a wholesaler or to an ultimate consumer.
Classification
Hawaiian honey is imported honey since it is brought in from outside continental United States. the importer’s maximum purchase price is determined under Section 1351.1319(b)(3),
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and his selling price under Section 1351.1319(b)(4)«
Maximum Price Regulation No. 279
BOPS
Price Determination Commissions
Broker's commission. A dealer in hops may not add broker's commission to his maximum price.
Violations and Evasions
Soiling of hops by a brewer. The sale of hops by a brewer is not subject to the Regu-Tation provided the transaction is a bona fide sale by the brewer and not a device to increase the dealer's price above the maximum price, e.g., where the brewer splits the money received with a dealer.
Definitions
"Brewers supply dealer". The 100% of total sales or services of a "brewers supply dealer" refer to thè dollar amount of sales or compensation for services of such dealer.
Maximum Price Regulation No. 283
BURLEY (TYPE NO. 31) TOBACCO
Price Determination
Dealer's warehouse charges. Section 1358.162(a) permits an addition of 1% a month, after 60 days, for the warehousing of hurley tobacco. The period for which the charge may be made begins with the 61st day after the tobacco is placed in the dealer's warehouse, and ends on the day it is removed for delivery to the buyer or for further processing. The 1% charge may be made for each full month of warehousing; no fractional part of a month may be included in the warehousing period.
Maximum Price Regulation No. 335
PEANUTS AND PEANUT BUTTER
Applicability *
Imported peanuts. The import sale of peanuts grown or processed outside of the United States is not covered by the Regulation except when the seller or his selling agent is located within the United States at the time of the sale, See Section 10. However, the re-sale of the peanuts after they have been imported into the United States, is covered by the Regulation.
Price Determination
Primary distributor. A preserving company whose peanut butter is manufactured for it by another packer under private label is a "primary distributor" as to such peanut butter, and determines its maximum price under Section 5.
Storage charges. An additional amount may not be added to the maximum price by the sheller for storage charges unless the peanuts in the sheller's possession have become the bona
10 til
fide property of the buyer, e.g., actual ownership and risk of loss have passed to the buyer. In this event, storage charges may be made in accordance with the General Maximum Price Regulation.
Sales to ultimate consumers. A seller roasts peanuts in the shell for sale directly to ultimate consumers. The seller is a "processor" under Section 4(d), because by processing he "transforms the peanut product . . being priced into the form in which it is priced". The exemption for sales by retailers, see Section 7, Exception (c) is not applicable to such a seller since he is not a retailer within the meaning of the example Section 4(a). The "processor" determines his maximum price under Section 4(b).
Definitions
Primary distributor. See page 10:11
Maximum Price Regulation No. 445
DISTILLED SPIRITS AND WINES
Records and Reports
Notification of prices. Section 5.8(a), entitled Notice of maximum pricey toconsumers, requires a seller to adopt one of the several methods of notification provided in the section. Once a method of notification is adopted, the seller must follow that method with respect to all sales made in the particular establishment. He may not, for example, adopt one method for certain sales of a brand and a different method for other sales of the same brand. Nor may he adopt one method for a particular brand, and another for a different brand.
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MEATS, FISH, FATS, AND OIL
Maximum Price Regulation No. 53
FATS AND OILS
Applicability
Babassu oils are covered by the Regulation.
Fatty acids and other residues from processing of fats and oils are covered by the Regulation
Grease oil is covered by the Regulation.
Inedible lard oil is covered by the Regulation.
Lard oil is covered by the Regulation.
Mixtures of oils which are themselves subject to the Regulation are covered by the Regulation
Olive oil. All sales of olive oil are subject to Regulation No. 53 except that refined olive oil sold for use or consumption without further processing or packing by the buyer is exempt pursuant to Section 1351.151a of the Regulation. Where so exempt, refined olive oil is subject to the General Maximum Price Regulation.
Packer edible tallow is covered by the Regulation.
Pine oil and pine oil disinfectant are not covered by the Regulation since they are oon-sidered "essential oils," and specifically exoepted by the Regulation.
Red oil is an oleic oil and is covered by the Regulation.
Sardine sterine is covered by the Regulation.
Soap stock and other residues from processing of fats and oils are covered by the regulation
Tucum oils are covered by the Regulation.
Wool grease is covered by the Regulation.
Sale of any by-product obtained from an oil which is subject to the Regulation is also covered by the Regulation.
Fat or oil bearing material. Fats and suet collected at slaughterhouses, etc., are not cov-ered by the Regulation, since they are fat or oil bearing material rather than raw fats. Thus butcher shop fats and suet, slaughterhouse fats and suet, offal collected at butcher shops and slaughterhouses, poultry offal, bones and fallen animals and greases collected from hotels and restaurants are not covered by the Regulation. However, they are covered by Amendment No. 2 to Supplementary Regulation No. 14 to the General Maximum Price Regulation. (Fixing prices at the November 1941 level) where sold to an industrial consumer, except that sales of such materials by the army and navy are exempted from price control.
Sesame oil made from imported sesame seed. The Regulation applies to sesame oil crushed in this country from imported sesame seed; the maximum price is established by Article IX, Section 9.2.
Oil crushed from imported kernels. Oils crushed from kernels which were imported into this country are subject to the Regulation as "imported vegetable oils," see Article IX.
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Cocoanut oil made from imported copra. The Regulation applies to coooanut oil crushed in this country from imported copra. The maximum price is established by Article IX.
"Processors.” Maximum prices for processors of standard and hydrogenated shortening and salad and cooking oils, see Article X, are applicable to any person who bottles, cans, blends, or purchases and repacks these items in smaller containers for resale.
Soy bean oil with 15% thinner. A soy bean oil produce containing 85% of soy bean oil and 15% of thinner is not subject to Regulation No. 53; the General Maximum Price Regulation applies.
Opoil - faooil. The Regulation applies to opoil and faooil as a high fatty aoid content oil; the maximum price is determined under Article II.
Price Determination
Base date. Where the seller cannot compute the maximum price by reference to October 1, 1941 because he made no comparable sale on that date, he may charge 111 percent of the price for a comparable sale made by him on November 26, 1941 without regard to the market price in the locality of his shipping point on October 1, 1941, or on November 26, 1941.
Butchers who prepare lard. Butchers who kill their own hogs and prepare lard therefrom for sale at retail are processors, and their maximum prices are established by Article IX.
Sesame oil made from imported sesame seed. See page 11:1.
Cocoanut oil made from imported copra. See page 11:2.
"Usual or normal differentials.” Where a seller's customary differential was lower than the differential prevailing generally in the trade, he may use the trade differential as the "usual or normal differential" referred to in the Regulation.
Wool grease - new containers. Where a seller formerly sold wool grease in returnable iron drums, and now sells in wooden barrels which were not previously used by the trade or the seller there is no "usual or normal differential for type of container" within the meaning of Section XIII. In such a case the seller is limited to the differential, if any, permitted for those containers previously used by the trade or the seller which are approximately the same size as those he intends to use.
Castor oil - cash discounts. Cash discounts previously given may be reduced or eliminat-ed in tbe sale of castor oil, provided that the net price per pound is not in excess of the maximum price established by Article IX.
Transportation charges - delivered prices. The allowable additions for increases in charges for freight, war-risk insurance and marine insurance connected with ocean transportation include all increases since October 1, 1941, provided the increases were actually incurred by the seller. Where the increased freight charges are reflected in the delivered price, but the foreign seller has not separated on tbe bill the cost of the goods from the cost of the freight, the increased freight charges are not actually incurred by the domestic seller and therefore may not be added to the domestic seller's maximum price.
Refined edible cocoanut oil - shipping point differential. The maximum price for imported refined edible cocoanub oil f.o.b. Los Angles is 9.50 cents per pound, the maximum price f.o.b. San Francisco, since there is no usual or normal shipping point differential for refined edible coooanut oil between Los Angeles and San Francisco.
Freight tax. Under Supplementary Order No. 31 - Tax on Transportation of Property Imposed by Revenue Act of 1942, the 3% tax on freight bills is treated by OPA as an increase in freight. Therefore, the tax may be included as part of the freight rate in determining the maximum price of lard delivered outside the corporate limits of the basing point.
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Fats and oils - delivered in company's tank trailers. The Regulation sets forth maximum prices f.o.b. producer's pliant for tallow and greases. A processor who sells on a delivered basis in his own tank trailers may charge the maximum f.o.b. price plus an amount fairly representing his delivery cost and not exceeding what it would actually cost the purchaser if he purchased the commodity at the f.o.b. point and paid for the transportation himself. The processor should bill the transportation charge separately. The seller must sell on an f.o.b. basis if the buyer so requests, if the seller also offers to sell on a delivered basis.
Shortening in wooden barrels. A processor formerly sold a brand of shortening in steel drums and now sells it in wooden barrels. The maximum prices of the processor's brand of shortening is established by Article X, which provides that the maximum price shall be determined according to the provisions of the General Maximum Price Regulation. Since the Maximum Price for the shortening is determined under the General Maximum Price Regulation, the seller also determines the maximum price of the shortening in ihe new containers under paragraph (7), entitled "Food products sold in new containers", of Supplementary Regulation No. 14 to the General Maximum Price Regulation.
Return freight on containers. A number of commodities subject to the Regulation are sold in returnable containers. In some oases the seller of the commodity receives a deposit charge to insure the return of the container. The question has arisen as to whether the seller of the commodity or the purchaser must pay the return freight on the container. Where the maximum price under the Regulation is established by the seller's price during a base period, the seller's customary practice during the base period determines who pays the return freight on the container. Where the maximum price is a dollar-and-oent price (e.g. U.S.P Lanolin, hydrous, 32 cents per pound), the seller of the commodity must pay the return freight on the container.
Violations and Evasions
Combined cash and futures transaction. Where the seller of loose lard demands, as a part of the consideration of the sale, that the purchaser give him a contract for a future sale of lard at a discount below the current futures market, such demand is a violation of the Regulation as a tying requirement.
Tallows and greases. The name, classification or type by which a tallow or grease was known prior to August 1, 1942, the effective date of Amendment No. 6 concerning Article XIV, determines the maximum price, subject to appropriate premiums or discounts if the specifications are higher or lower than those enumerated in the Regulation. The fact that a tallow or grease meets the minimum standards set forth for a better type of tallow or grease does not qualify it for the maximum price for such tallow or grease, unless it was commonly understood by the trade to be such type prior to August 1, 1942. The fact that the tallow or grease has specifications which exceed the minimum standards set forth in the Regulation merely entitles it to the "usual or normal differentials" above the basis grade to which it belonged as recognized by the tirade prior to August 1, 1942.
Sales of inedible tallow at edible tallow prices. Section 14.1 establishes the maximum price for edible hallow, f.o.b. the seller's plant. If the seller sells f.o.b. his plant, delivery to the buyer is complete when the tallow is placed in freight cars that is earmarked for the buyer. Therefore, it is a violation of the Regulation for a seller to denature edible tallow prior to delivery and to sell it at edible tallow prices, because the denatured tallow is inedible and not edible tallow. Nor may a seller sell edible tallow at edible tallow prices and in addition sell separately his own services for denaturing the tallow, because this would also constitute a sale of inedible tallow. After the sale of the edible tallow, the buyer may denature it for soap making or hire another person, not the seller, to denature it for him.
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Maximum Brice Regulation No, 148
DRESSED HOGS AND WHOLESALE PORK CUTS
Applicability
Sales by fanners to retail merchants. See page!! >13,
Price Determination
Cost in excess of allowance for packing in shipping containers. The seller must absorb any cost in excess of the allowance for packing in the shipping containers specified in the Regulation, Schedule III.
Peddler 8a^es of more ^an 50 pounds. Where a seller makes a peddler-truck sale in-
volying delivery of more than 50 pounds of wholesale pork outs or more than 160 pounds of meats in one day from such truck to any buyer’s store-door, he forfeits the addition of $1.50 per cwt. but is entitled to the addition specified for local delivery.
Slaughterer who sells to a ship chandler. The sale of pork cuts by a ship chandler to ships is not a sale at retail; it is a sale to a purveyor of meals. Therefore, a slaughterer who sells dressed hogs to a ship chandler may use the appropriate seasonal denominator markups in Schedule IV of Appendix A, to determine his maximum price, provided that the ship chandler otherwise qualifies as a "certified hog processor* under Section 1364.32(a)(¿2).
Addition - sales to purveyor of meals. A wholesaler making a sale to a purveyor of meals may include in his maximum price the permitted additions of both paragraphs (e) and (f) of Schedule III, i.e., both $2.00 per cwt. and $0.50 per cwt.
Discount on shipment oyer 500 lbs. The discount of 25/ per cwt. on wholesale pork cuts delivered in a shipment of more than 500 pounds of wholesale pork cuts but less than 5000 pounds as required in Schedule 11(d)(2) must be taken even though the shipment is mixed and includes other items besides the 500 pounds of pork cuts.
Open lug boxes which are not carried into the buyer’s place of business are not "shipping containers" within the meaning of Section 1364.32(a)(11); and the addition permitted in Schedule III (o) for packing in shipping containers is not applicable.
Local delivery charges. A seller may not add local delivery charges from his plant to the common carrier if the buyer pays the freight charges. A seller nay add local delivery charges only where he makes delivery to the buyer’s store door, see Section 1364.35 Schedule 111(d)(1). *
F.o.b. sales - consignment to express company. Pursuant to Section 1364.22(e), pork products may be sold on an f.o.b. shipping point basis where they are consigned to an express company and the express company’s charges are paid directly to it by the buyer.
Allowance for local deliveries. See page 11*13,
Determining total volume of sales. See page 11x9,
Wire bound boxes. Wire-bound wooden containers which have spaces between the wooden portions are not "wirebound boxes" under Schedule 111(c)(2), Section 1364.35. Such containers are wirebound crates under Schedule 111(c)(1) and Schedule.111(c)(2) for which a seller may add only 50/ per cwt.
Cloth wrapping. A stockinette is not a cloth wrapping within the meaning of Section
600780 0 - 44 - 11
11:4
1364.35, Schedule 111(c)(1)(vi). Therefore, the 25/ per cwt. addition for packing in cloth wrappings nay not be added for stockinette wrappings.
Dressed suckling pigs of any weight are "dressed hogs" within the meaning of the definition, Section 1364.32(a)(2). The maximum price for sales to certified dressed hog processors is determined under item 11, Schedule IV(a), as "slaughter pigs under 73 pounds"; on sales to others than certified dressed hog processors, the maximum price is determined under Section 1364.22(g)(3), "pigs under 73 lbs".
Delivery charges. A hotel supply house pays a local delivery charge to its packer. The hotel supply house may not add this amount to its maximum price when selling to a purveyor of meals. The addition of $2 per cwt. in Section 1364.35 Schedule 111(e), for sales to a purveyor of meals, includes all costs of local delivery.
Deduction for wholesale pork cuts. The discount of 25/ per cwt., Schedule 11(d)(2), must be taken only if the ictal shipment contains 500 lbs. of wholesale pork cuts. But the discount of 50/ per cwt., Schedule 11(d)(1), must be taken on each wholesale pork cut if the total shipment is 5000 lbs. or more. In the latter instance ths contents of the shipment is not limited merely to wholesale cuts; it may be mixed and include even canned goods, so long as the shipment contains some wholesale pork cuts and is 5000 lbs. or more in weight.
Transportation Charges
Transportation charges - Army. An army camp west of the central price zone may take delivery of dressed hogs and wholesale pork cuts at the seller’s plant at central zone prices, provided that the costs of transportation from the seller’s plant to the Anny camp are paid directly to the carrier by the Army, see Section 1364.22(e). Such charges may not be billed by the seller as part of the selling price.
Classification
"Pork cuts packed in wood containers." Schedule 1 item (g) "Pork outs packed in wood and glass containersw refers to cured pork products•
Violations and Evasions
Refusal to sell wholesale cuts. A refusal to sell wholesale cuts, and the offering instead of dressed carcasses is not an evasion despite a contrary practice of the seller in the past.
Sales by packer where buyer is not a certified hog processor. Schedule IV of Appendix A sets forth the pricing instructions ho determine the maximum prices for sales to certified dressed hog processors. It is a violation of the Regulation for a packer to use the denominator markup provided in Schedule IV on sales of dressed hogs to a buyer where the packer knows that the buyer is not a "certified dressed hog processor" or where the packer has notice of facts which indicate that the buyer is not such a processor. This rule prevails even though a buyer previously qualified as a "certified dressed hog processor" wider Section 1364.32(a)(12).
Multiple deliveries to avoid discount. A discount of 25/ per cwt. is required by the Regu-1ation on wholesale pork cuts delivered in a shipment of more than 500 pounds, Schedule II (d)(2). A buyer picks up more than 500 pounds of wholesale pork cuts in one day by means of several deliveries; the cuts are separately invoiced by the seller to present a series of separate charges, each less than 500 pounds. This transaction is a violation of the Regulation. The test of whether a particular transaction involving multiple delivery constitutes an evasion or an attempted evasion of the discount provision is this: Did the negotiation between the seller and the buyer contemplate ultimate delivery by the seller to the buyer of an amount in excess of 500 pounds in a single day? If the negotiations did contemplate a sale of this size, the discount must be taken regardless of the actual method of delivery.
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Service charge for boning ham, etc. The Regulation, Section 1364.35 Schedule I (a), establishes maximum prices ¿or boneless hams and other boneless cuts. Therefore, it is a violation of the Regulation to sell a bone-in cut at the established maximum price and to add a "service charge" for transforming it into a boneless out if the seller thereby receives a price for the boneless cut in excess of the maximum.
Definitions
"Certified dressed hog processor" - base year. A retailer who commenced business in 1942 cannot qualify as a "certified dressed hog processor" under Section 1364.32(a)(12), even though he obtained more than half of his pork supply during 1942 by cutting up dressed hogs or hog carcasses. The calendar year 1941 is the test year.
"Certified dressed hog processor" - Sales at retail. A person who operates more than one place of business and does hot sell at retail in any of them may qualify as a "certified dressed hog processor” under Section 1364.32(a)(12). If he does sell at retail, he may qualify as a certified dressed hog processor only if more than half of his total pork supply at all places of business was obtained during the year 1941 by cutting up dressed hogs or hog carcasses.
"Wholesaler" - canner of wholesale pork cuts. A canner of wholesale cuts is a "wholesaler" as defined in Section 1364.32(a)(IS), even though he does not resell the wholesale pork cuts in the same form as that in which he receives them. In determining his maximum price, the canner may add the allowance of 50/ per cwt. for wholesale pork cuts sold by the wholesalers, Schedule 111(f) Section 1364.35.
"Certified dressed hog processor." A wholesaler, who sells pork at retail to persons other than his employees even bhougihe maintains a separate establishment for his retail sales is not a "certified dressed hog processor” within the meaning of Section 1364.32(a)(12), unless during the year 1941 he obtained more than half of his entire pork supply by cutting up dressed hogs or hog carcasses.
"Meat outs". "Variety meats and edible by-products”, as defined in Section 16(b) of Regulation 396 (Variety Meats and Edible By-Products at Wholesale), are included in "meat cuts" as this term is used in the definition of "carload", "a shipment •• of fresh .. meat cuts.." Section 1364.32(a)(9) of this Regulation.
"Warehouse receipt" issued to war procurement agency. A "warehouse receipt" issued by a seller to a war procurement agency pursuant to Secbion 1364.26(a)(3)(ii) is an instrument containing the following terms:
(a) The location of the seller's plant where the pork products are stored;
(b) The date of issue of the instrument;
(c) A statement showing the buyer for whom the pork products are stored and to whom they will be delivered;
(d) The rate of storage charges;
(e) A description of the pork products stored;
(f) If title to the pork products is to remain in the seller after the issuance of this instrument, a statement to that effect, and
(g) The signature of the seller which may be made by his authorized agent.
"Sacks", Schedule 3(c)(l)(vi), means a cloth or burlap sack; it does not refer to a paper sack.
Wire-bound boxes. See page 11:4.
Cloth wrapping. See page 11:4.
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Maximum Price Regulation No. 169
BEEF AND VEAL CARCASSES AND WHOLESALE CUTS
Applicability
Sales to restaurant» and other purveyors of food. Pursuant to the Regulation’s definition of "sales at retail" a sale to a restaurant or to other purveyors of meals is not a sale at retail unless it is made by a seller at least 80% of whose sales of meat during the preceding calendar month were made to ultimate consumers, and the sale was on the usual retail terms; therefore, unless both of these provisions are complied with the sale is subject to the regulation.
Slaughtering service - "purchaser". Where a cattle raiser breeds cattle which is slaughtered on his own farm so tKht he In no manner purchases the cattle on the open market, he is not a "purchaser" under Section 1564.401(c). However, if he purchases the cattle on the open market and farms them for fattening purposes, he is a "purchaser" subject to that Seotion.
Sausage made chiefly from mutton but containing any proportion of beef or veal is governed by Regulation No. 169, pursuant to Section 1364.477(3) defining "Processed products". If the sausage contains only mutton, the General Maximum Price Regulation applies. Regulation No. 239 (Lamb and Mutton Carcasses and Cuts at Wholesale and Retail) does not apply.
Roast beef. Roasted beef packed in a container is a "processed product" within the mean-Thg’dfSection 1364.477(a) (3).
Price Determination
Sales to commissaries in defense plants. Commissaries and restaurants in defense plants and steamship company commissaries are not an "institution ... of the United States" within the meaning of Seotion 1364.476(d) even though the products purchased are invoiced directly to the federal government with the commissaries or restaurants shown as agents; paragraphs (a), (b) and (o) of Seotion 1364.476 are applicable to such sales and not paragraph (d).
Deductions, etc. - special classes of meats. The deductions for carload discount, Seotion 1364.433 Schedule 11(h), and the additions for transportation and delivery charges, Section 1364.454, Schedule III, do not apply to the sale of boneless beef for army canned meat, or to frozen boneless beef (army specifications), or to boneless processing beef, maximum delivered prices for boneless beef for army canned meat and boneless processing beef are established by paragraphs (1) and (m), and maximum f.o.b. price for frozen boneless beef (army specifications) are established by paragraph (n) of Section 1364.452.
Carload discount - delivery to more than one point. The carload discount required by Section 1364.433, Schedule 11(b) is not applicable to the sale of a carload of meat to a chain store company where the seller delivers it in quantities of less than 15,000 pounds to the individual markets of the chain. The discount is required only where the carload is delivered by the seller to a single delivery point.
Packaging for steamship company sales. The charge of 50 cents per cwt. for packaging, Section 1384.454 (a), may be made where beef and veal carcasses and wholesale cuts are sold to steamship companies operating under the War Shipping Administration. Such companies are agents of a "war procurement agency", Section 1364.455(a)(12).
Slaughterer who grades his beef. The requirement that all meat must be federally graded and grade stamped, Secbion 1364.411(c), must be complied with, with one exception. Where the Department of Agriculture is unable to provide the services of a grader because the seller is remote from an established market center, a certificate of exception will be
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granted upon application to the Department of Agriculture, and the seller may do his own grading. In thia instance the seller must deduct from his applicable zone price the 12^/ per cwt. discount, Section 1364.453(a), which approximates the cost of federal grading.
When a seller’s meat has not been officially graded and stamped and he has not applied for a certificate of exception but uses his own grade stamp, he is violating the grading requirements of the Regulation. The violator's applicable zone price is "the lowest-priced carcass or corresponding wholesale out", Section 1364.452(d)(2). He must also deduct the 12^ cents per cwt. discount for meat not federally graded.
Packer who delivers in another sone.
Question: A packer is located in zone 8 and makes deliveries by truck in zone 7. How does he determine his maximum price?
Answer: Ths applicable zone price is the price for the zone in which Is located the seller's distribution point at which the buyer takes possession of the meat, or the point from which local delivery to the buyer's place of business begins, Section 1364.451(a)(3)(i) and (ii). The seller determines his maximum price under either paragraph (i) or (ii). If he selects paragraph (i), he is limited to the applicable zone price established for sellers in zone 7 since the buyer takes physical possession of the meat at the seller's distribution point in that zone, and no additions for local delivery may be made. However, if the seller elects to price under paragraph (ii), the seller's distribution point is zone 8, and he may add local delivery charges to his applicable zone 8 price from his distribution point to the buyer's place of business.
Purveyors of meals - sale of ground beef. The maximum prices set forth in Section 1864.452fo)(S') Tor ground beef and miscellaneous beef items to purveyors of meals, are base area prices. To these may be added the applicable zone differentials established under Section 1364.452(o)(3).
Packer - boneless meat for sausage. A packer who sells boneless meat sausage determines his" maximum price under Section 13'64.452(1), entitled boneless beef for Army canned meat; sales of boneless beef for civilian sausage are priced under Section 1364.452(n), entitled boneless processing beef.
packaging for war procurement agencies, (a) The addition of 50 cents per cwt. on sales to war procurement agencies, Section 1364.454(e), may be applied only on sales of beef carcasses and wholesale outs as these terms are defined in the Regulation. It may not be applied on sales of frozen boneless beef to war procurement agencies.
(b) The addition of 50 cents per cwt. covers all types of packaging or wrapping and hence Supplementary Order No. 34 entitled "Packing Expenses on Sales to Procurement Agencies" is not applicable.
(c) The Regulation provides an allowance for "packaging or wrapping, and freezing (U. S. Government Specifications"); no amount may be added for packing and chilling.
(d) Under Regulation No. 239 (Lamb and Mutton Carcasses and Wholesale Cuts), no additional charge may be made by a seller for special wrapping of lamb carcasses sold to war procurement agencies, other than the'25 cents per cwt. allowed for special wrapping in Section 1364.170(b)(2).
Allowance for local deliveries. See page U:13,
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Limitation on volume of sales to purveyors of meals.
Question: A person not previously engaged in the meat business buys out a hotel supply house. Does he succeed to the 70% volume quota of the seller’s fabricated meat outs under Section 1364.415(a)?
Answer: The buyer of a hotel supply house succeeds to the seller’s volume quota, provided that the newly acquired supply house is carried on as a separate selling establishment and that the volume quota is restricted to sales from that establishment. This rule also prevails where a purchaser already operates a hotel supply house but buys another which he continues as a separately conducted house.
Question: A purchaser operating a hotel supply house buys another which he discontinues and merges with his own. May he add the volume quota of* the seller to his own prior volume quota?
Answer: No. Section 1364.415(a) "limitation on volume of sales to purveyors of meals" restricts the sale by hotel supply house to a 70% quota volume determined by reference to sales made during the base period, September 15, 1942 to December 15, 1942. The volume quota so determined may be used only by that particular hotel supply house and may not be transferred or added to another volume quota, except on approval of the OPA on a petition for amendment.
Question: A packing company previously sold fabricated cuts to purveyors of meals and now desires to discontinue this phrase of its business. May the packing company sell its volume quota?
Answer: No. The volume quota,is determined by reference to sales made during the base period, Section 1364.415(a), and it may not be transferred.
Question: May a hotel supply house sell fabricated beef cuts to retail stores ?
Answer: No. A fabricated beef cut is a wholesale cut designed for sale to purveyors of meals only, Section 1364.455(b)(3). A sale to a retailer of any cut, other than those which have been specifically defined, and for which maximum prices have been established in the Regulation is a miscut. The seller's maximum price for a miscut is the applicable zone price of the lowest price wholesale cut, Section 1364.452 (k).
Hotel supply house - new partner. Changes in proprietary interest do not affect the status of a hotel supply house. It may continue to sell fabricated outs as a hotel supply house up to the 70% limitation on its volume of sales, Section 1364.415(a), provided that the establishment continues to maintain its identity as a hotel supply house.
Export sales to Hawaii of fabricated outs. Export sal es of fabricated cuts to purveyors of meals in Hawaii during the base period, September 15 - December 15, 1942, are included in the seller's quota base, and are therefore chargeable against the 70% of the total volume of his sales under Section 1364.415 (a). The maximum price for the export sales is determined under the Maximum Export Price Regulation.
Determining total volume of sales. All kinds, carcasses and cuts of meats are included by the seller in determining the total volume of his sales, 70% of which must have been sold during the base period, September 15 - December 15, 1942, to purveyors of meals, Section 1364.415(a). A seller is limited in his sales of fabricated cuts to 70% of the total volume; no sale may be made after the 70% has been reached, excepting in the case of wholesale pork cuts. A hotel supply house may sell wholesale pork cuts over and above the 70% volume limitation, Section 1364.22a(a). Regulation No. 148 (Dressed Hogs and
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Wholesale Pork Cuts), provided that the maximum price therefor does not include the $2 per cwt. permitted addition, Schedule 111(e). Wholesale pork cuts, not taking the $2 per cwt. addition need not be included in determining the 70% volume of sales of fabricated cuts during a given quarterly period.
Carlodd discount. A packer sells a carload of meat to a person and consigns the car to himself ab the buyer's oity. The entire oar is delivered to the buyer but in local deliveries of less than 15,000 pounds each. Since the shipment for the one purchaser starts to move as a carload, the carload discount, Section 1364.453, Schedule 2(b) applies, and the seller must deduct 25/ per cwt. from the applicable zone price.
Boxing charges - fabricated outs. The maximum prices established in the Regulation for fabricated veal outs include costs of packaging, Section 1364»467(n)(4). Packaging includes boxing or barreling, and therefore no addition to the maximum price may be made for boxing or barreling fabricated veal outs.
"Delivered" price - transportation costs. The following three oases are presented to illustrate the meaning of "delivered" in Section 1364.451(a)(2), which provides, "except for the additions permitted in Schedule III hereof, ... the zone price shall be the delivered price , . Within the same zone, (1) a seller ships by rail a carload of beef to the buyer, the buyer paying the shipping charges directly to the carrier, or (2) a seller ships
beef to the buyer by carrier other than a railroad, the buyer paying the shipping charges directly to the carrier, or (3) the buyer picks up the meat at the seller's place of business and transports it to his place of business in the buyer's own trucks.
Question: Must the seller in each of these cases deduct from the zone price the cost of transportation to the buyer because the meat has not been "delivered" until it reaches the buyer's store door:
Answer: No. Products are "delivered" within the meaning of Section 1364.451(a)(2), at the seller's distribution point, as defined in Section 1364.451(a)(3). The buyer, therefore is responsible for any transportation charges incurred from the seller's distribution point to the buyer's place of business with the exception of the limitation on the amount a seller may charge for local delivery, Section 1364.454(a).
In cases (1) and (2), the seller's distribution point at which the carrier receives the meat for shipment, and the meat has been "delivered" at that point. Therefore, the buyer is responsible for transportation charges incurred thereafter. In case (3), the distribution point is the seller's place of business where the buyer takes actual physical possession of the meat. Therefore, the buyer must pay the costs of transportation from that point to his place of business.
Applicable zone price. A packer operates a slaughtering plant at Denver (zone (3) from which he makes all bis meat sales. The meat is then shipped in oarlots to a custom operated cold storage plant at Salt Lake City (zone 2) from which it is distributed to the buyers who purchased at the Denver plant.
Question: Is the custom operated storage plant at Salt Lake City a branch House of the seller, so that he may determine his maximum price for meats under the zone 2 prices?
Answer: The applicable zone price is the price in which is located "the seller's distribution point", Section 1364.451(a)(3). A seller's "distribution point" includes a packer's branch warehouse, Section 1364.455 (a)(5). But a branch warehouse means a selling unit owned or controlled by the packing house. So that a custom operated storage plant not owned or controlled by the packer, but merely used by him for convenience and distribution purposes is not a packer's selling unit within the meaning of the definition. And therefore, the packer determines his maximum prices at Denver (zone 3) where the sales are made.
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Violations and Evasions.
Retailer and slaughterer. The relationship between a slaughterer and a retailer for whom he slaughters is nob one of the sellers and ultimate consumer, and therefore the slaughterer is not within the exceptions provided in Section 1364.401(c) entitled "Maximum price for slaughtering services". The exception provided for, where the purchaser does not acquire the carcass or outs for resale in any form, is not available since the purchaser acquires the carcass for resale to ultimate consumer.
Additional charge or "tax" for Kosher slaughtering.
Question: May packers continue to collect tax of $2.50 per hundredweight from butchers to turn over to Jewish organization which pays Rabbis' and schecters* salaries?
Answer: Any charge over and above prices established under Regulation Ho. 159 is prohibited. It is clear that the "tax" referred to comes within this prohibition. The tax is one collected for the purpose of compensating Rabbis and schecters who perform services of value to the packer.
Boning out rough flank. The boning out and sale of carcasses or wholesale outs of any grade other than cutter and canner is prohibited by Section 1364.451(a)(4). Since a utility rough flank is of a higher grade than cutter and canner, it is a violation of the Regulation, after removal of the flank steak frcm the rough flank and boning, to sell the remainder as boneless processing beef under Section 1364.452(n)(2)(A).
Contributions by retailers to offset deficit of a slaughtering corporation. A group of re-bailers organized a non-profit corporation bo buy cabble ab current prices’, slaughter the cattle and to sell it to the retailers at the Regulation's zone price for wholesale cuts. The deficit incurred by the slaughtering corporation was offset by contributions from the stockholders who purchased the dressed meat. This transaction is a violation of the Regulation. The slaughtering corporation, as a separate entity, is a seller and receipt by it of any contributions from purchases (the retail stockholders) is a consideration in excess of the maximum permitted in the Regulation. The retailers have also violated the Regulation, since the total consideration paid by them exceeds the maximum price.
Slaughterer who grades his beef. See page 11:7.
Substitution of specific items of beef. Section 1364.451(a)(4) prohibits the sale of any miscellaneous (dried) beef items of types or grades other than those which have been specifi -cally defined and for which maximum prices have been established in the Regulation. Therefore, it is a violation of the Regulation to sell ham sets of AA and A grade in place of the dried beef items in Column 7 of the Table in Section 1364.452(p), which establishes maximum prices for ham sets of utility or C grade.
C.O.D. collection on F.O.B, sale.
Question: May seller require purchaser to pay C.O.D. collection charges when sales are on an f.o.b. basis and delivery is made by public carrier?
Answer: No. Section 1364.406(b) provides that: "specifically but nob exclusively the following practices are prohibited: ...(8) charging, paying, billing or receiving any consideration for or in connection with any service for which a specific allowance has hot been provided in this revised Maximum Price Regulation No. 169". The word "paying" refers not only to a seller, but has reference to any party directly or indirectly involved in the transaction. To the extent that the buyer is forced to pay any charges in addition to those prescribed under the regulation, there is a violation. Moreover, since
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the carrier is the agent of the seller for purposes of collection and is acting on his behalf, the collection charges must be borne by the seller«
Sales of fabricated cuts to a post exchange« Section 1364.455(b)(2)(ii) of the Regulation permits the sale of fabricated cuts only to the War Shipping Administration. Since a post exchange which serves meats or refreshments from funds allocated by the Army is not part of the War Shipping Administration, it is a violation of the Regulation to sell fabricated cuts to the post exchange.
Definitions
Packaging for steamship company sales. See page 11:7.
Wholesaler - owner of a "substantial part” of a slaughtering plant. Section 1364.455(a)(13) defines a wholesaler as "a person • • .'who does not own or control, in whole or substantial part, any slaughtering plant or facilities ...” The controlling test as to what constitutes a "substantial part" is the power or authority of the wholesaler to direct or regulate substantially the management of the slaughter house. For example, a 30% corporate stock interest held by a wholesaler constitutes control to a "substantial" extent, and the wholesaler therefore, may not add the 75/ per cwt. to the applicable zone price permitted in Section 1364.454(d).
"Hotel supply house." In order to retain its status, a hotel supply house must sell meat products only to purveyors of meals. If the hotel supply house sells a carcass, wholesale out, fabricated cut, sausage, variety meats or edible by-products to a retailer, it loses its status as a hotel supply house, as defined in Section 1364.455(b)(1). This interpretation applies also to Regulations No. 398 (Edible By-Products at Wholesale), 389 (Ceiling Prices for Certain Sausage Items at Wholesale) and 239 (Lamb and Mutton Carcasses and Wholesale Cuts).
"Purveyor of meals" - officer's mess. An officer's mess is a "purveyor of meals" within the meaning of the definition, Seclion 1364.455(b)(2).
Records and Reports
Grading and stamping requirements - slaughterer's sale through his retail outlets. Section 1364.411 specifically provides that no person shall sell, offer bo sell, deliver or break any beef or veal carcass unless it is properly stamped and graded. Therefore, a slaughterer who slaughters cattle and breaks the carcass for sale through retail outlets which he owns is subject to the grading and stamping requirements of the Regulation. The fact that his retail outlets sell at retail and that such sales are not subject to the Regulation does not exempt him from the stamping and grading requirements. Breaking beef carcasses is essentially a wholesale function, and furthermore breaking for sale at retail is not a sale at retail.
Grading of beef which is not sold. The State of New York purchases cattle and has it slaughtered for consumption in slate institutions. This beef must be graded pursuant to the Regulation. The grading requirements, Section 1364.411(e)(2)(i) are not limited only to beef slaughtered for sale.
Maximum Price Regulation No. 239
LAMB AND MUTTON CARCASSES AND CUTS AT WHOLESALE AND RETAIL
Applioability
Sausage. See page 11:7.
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Price Determination
Packaging for war procurement agencies. See page 11:8.
Allowance for local deliveries. Section 1364.170(h)(2) of the Regulation, and Regulation No. 169 (Beef and Veal Carcasses and Wholesale Cuts), Section 1364.454, Schedule (lll)(3), permit the seller to add an allowance for local deliveries to a buyer located within a radius of 25 miles from the seller's distribution point. The seller determines the distance traveled for local delivery on the basis of airline miles and not upon the number of miles actually traveled in delivering his products. Regulation No. 148, (Dressed Hogs and Wholesale Pork Cuts), Schedule 111(d)(1), allows additions for local delivery . . ."if such delivery is completed within 25 miles of the point from which such local delivery begins." This distance is also computed upon the basis of airline miles.
Determining total volume of sales. See page 11:9.
Definitions
"Hotel supply house." See page 11:12.
Maximum Price Regulation No. 336
RETAIL CEILING PRICES FOR POR? CUTS AND PROCESSED MEAT PRODUCTS
Applicability
Sales by farmers to retail merchants. The Regulation does not apply to the sale of country cured pork items by farmers to re-tall merchants, since such sales are not sales at retail. Regulation No. 148 (Dressed Hogs and Wholesale Pork Cuts) applies.
Price Determination
Consumer in different zone than seller. A retail store located in one zone sells to a consumer located in another zone. Theretailer's maximum prices are determined by the zone in which his store is located, Section 1. No additional charges may be made for transportation or packing costs for such inter-zone sales.
Lessees of a chain store. A chain of retail grocery stores leases its meat departments to individuals who sells a complete line of meat. The annual gross sales of the individual meat departments are under $250,000. The lessees determine their annual gross sales under Section 12(b)(2), because they "sell in a retail store in which there are other food retailers, none of whom sells a complete line of the same general class of food."
Canned skinless hams. A retailer's maximum price for skinned boneless and fatted hams which he purchases in can's and then slices for resale after opening the cans, is the same as the maximum price for sliced ham boneless and fatted, as set forth in Section 19, item 3D.
Classification
Packer selling at retail. A packer sells to wholesalers, retailers, restaurants and consumers. He sells to consumers aF his packing plant and to consumers located in various cities. A separate department is maintained for his retail business. In 1942 his sales to consumers amounted to less than $50,000, while his wholesale sales were over $900,000. Under these circumstances the packer's retail department is a class 1 and 2 store having annual gross sales less than $250,000, Section 2(c).
Violations and Evasions
Purchases by hotels and restaurants. Section 10 of the Regulation provides penalties for persons who buy in the course of trade or business above the ceiling prices. This provision refers only to those sales which are permitted to be made to hotels and restaurants under Section 5, entitled, "Sales to eating places."
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Maximum Price Regulation No. 355
RETAIL CEILING PRICES FOR BEEF, LAMB, VEAL AND MUTTON CUTS AND ALL VARIETY MEATS AND EDIBLE BY-PRODUCTS
Applicability
Sliced roast beef, etc. Sliced roast beef, barbecued beef or cooked corn beef are not subject to the Regulation; the General Maximum Price Regulation applies.
Price Determination
Reduction - chain stores. The requirement in Section 2(a) that certain chain stores sell at a 10% reduction applies only to sales of beef, veal, lamb and mutton outs. The deduction need not be made on sales of variety meats and edible by-products.
Violations and Evasions
Grinding meat pursuant to telephone orders. It is a violation of the Regulation for a retailer to grind retail cuts of meat pursuant to an order received over the telephone. Section 22(a) Note 1(b) provides that a retailer may grind retail cuts of meat only if the grinding is done in such a manner that the customer can observe it. The customer must be present, and in a position to observe the grinding process if he so desires.
Maximum Price Regulation No. 364
FROZEN FISH AND SEAFOOD
Applicability
Fish caught in Alaska. The Regulation applies to sales in the United States of fish caught and frozen in Alaska, and the maximum price is determined under Section 3(e). The Regulation does not apply to sales in Alaska of fish caught and frozen in Alaska.
Shrimps frozen in ice. Shrimps are shipped to a wholesaler from a coastal port, frozen in a solid cake of ice for temporary preservation. The wholesaler, prior to resale, thaws the shrimp. These shrimp are frozen seafood subject to the Regulation; they are not fresh fish. Sales at retail are governed by Regulations Nos. 422 (Ceiling Ibices of Certain Foods Sold at Retail in Group 3 and Group 4 Stores) and 423 (Ceiling Prices of Certain Foods Sold at Retail in Independent Stores Doing An Annual Business of Less Than $250,000 (Group 1 and Group 2 Stores) ).
Frozen croakers. Frozen croakers, with heads, fins, and tails off, scaled and gutted, are not covered by the Regulation; the General Maximum Price Regulation applies. Regulations Nos. 422 and 423 apply at the retail level, depending on whether the seller is a class 1, 2, 3, or 4 store.
Price Determination
Purchases at different prices. When the same type of frozen fish is purchased from time to time at different prices, the purchaser determines his maximum price separately for each lot.
Storage charges. No additional amount may be added to the maximum price of frozen fish and seafood for storage charges.
Freight charges - icing. Charges for icing a freight car from the point of entry into the IJnlbed States to a wholesaler's place of business may be added by a wholesaler in determining his freight charges, Section 3(e). However, a charge may not be added for icing the fish.
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Net cost - service wholesaler. Storage expenses for frozen fish or seafood incurred by a wholesaler prior to resale may not be included in calculating "net cost" under Section 3(b).
Mixed frozen shrimp. Frozen shrimp must be sold in count per pound. Section 14, Schedule 54. If the shrimp is mixed the seller must sort the shrimp according to count, or sell the mixed shrimp at the highest count applicable to any shrimp in the consignment.
Unspecified style. Where no maximum price is established under the Regulation for a par-tioular style of dressing, the maximum price of the unspecified style is determined under the General Maximum Price Regulation.
Classification
Sales to war procurement agencies. Sales of frozen fish and seafood to war procurement agencies, Section 3(f), may be any class of wholesale sales, depending on the type of sale and service performed by the seller.
Definitions
"Primary wholesaler". A primary wholesaler need not maintain his own warehouse or cold storage plant in order to qualify as a "primary wholesaler", under Section 3(d)(1). He may conduct his business from a commercial cold storage plant.
Cash and carry wholesaler. A wholesaler who extends credit but does not deliver, is a cash and carry wholesaler, Section 3(d)(3); he is not a service and delivery wholesaler under Section 3(d)(4).
Maximum Price Regulation No. 367
HORSEMEAT
Applicability
Mule carcass. Meat derived from a mule carcass is horsemeat within the meaning of the defini-tion contained in Section 13(a)(2), and therefore is covered by the Regulation.
Definitions
Ground horsemeat. The addition of "other ingredients not in excess of 8%" in the definition of ground horsemeat (boneless), Section 13(a)(5), is optional; ground horsemeat may be sold without the addition of any extraneous ingredient.
Maximum Price Regulation No. 389
CEILING PRICES FOR CERTAIN SAUSAGE ITEMS AT WHOLESALE.
• Applicability
Sales to canners. The Regulation applies to the sale of Vienna sausage to canners.
Price Determination
Local delivery costs. Section 12(c)(2) permits an addition for local delivery to the base price of sausage, except on peddler truck sales. For peddler truck sales not exceeding 50 pounds of sausage and 150 pounds of meats, meat by-products and sausage in any one day made by an independent peddler truck seller to buyers located in Zone 9 North of the Potomac River, a $3.00 per hundred weight addition is permitted by Section 12(c)(l)(iii). For other peddler truck sales a $2.50 per hundredweight addition is permitted by Section 12(c)(l)(iv).
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If either quantity limitation is exceeded by a peddler truck seller, the only permissible addition is the local delivery addition in Section 12(c)(2).
Peddler truck sales.
Question: Does the 50 lb. limitation of sausage for ’’peddler truck sales”. Section 13(a), include sausage exempted from the Regulation under Section 1(b) as well as sausage covered by the Regulation?
Answer: Yes. The limitation to 50 lbs. in the definition of ’’peddler truck sale” includes all sausage products as defined in Section 13(b), whether or not they are covered by the Regulation. So that, if more than 50 lbs. of any sausage products are sold in any one day from a truck, the seller may not add the peddler truck allowance of $2.50 per cwt., Section 12(c)(1).
The inclusion of that sausage, exempted from the Regulation within the definition of peddler truck sales; in no way subjects a sale of such exempted sausage to any of the provisions of the Regulation.
Definitions
’’Artificial casing” - cellophane covering. ’’Artificial casing" means a "cellulose or fibrous casing, or a heavy cloth bag", Section 13(b). Sausage put up in a cellophane package or covering is not sausage in an artificial casing.
Added moisture. The amount of water or ice that may be added to bologna or frankfurters, Section 13(c), is that amount based on the finished weight of the sausage, pursuant to the practices of the Bureau of Animal Industries.
"Hotel supply house." See page 11:12
Labeling
Grade labels in place of ingredient labels. Section 4(b)(3) requires that each sausage label must show the ingredients of the sausage. Grade labels therefore, which merely indicate the grade, but which do not state the ingredients of the sausage being sold, do not meet the requirements of the Section.
Sausage cartons, oection 4(b)(2) requires that a label, showing ingredients, name of sausage and casing identification be stamped upon the container or carton in which the sausage is placed. Printing on a separate piece of paper or cardboard which is fastened to the container or carton by staples, either on the inside or outside, does not meet the labeling requirements of the Section.
Maximum Price Regulation No. 398
VARIETY MEATS AND EDIBLE BY-PRODUCTS AT WHOLESALE
Definitions
"Hotel supply house." See page 11:12
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Maximum Price Regulation No. 418
FRESH FISH AND SEAFOOD
Applicability
Point nosed sole. Point nosed sole or common California sole is subject to the Regulation under the class ifioat ion, "Sole, English (Pacific Coast)," Table A, Schedule 38.
Price Determination
Co-operatives. A co-operative association of fishermen is a "producer" within the mRatring of the definition, Section 18. Accordingly, a co-operative which performs the functions of a primary fish shipper wholesaler and otherwise meets the requirements of Section 2(a), may sell at the prices provided in Tables B, D, or E depending on the character of sale.
Charges for "breaking" containers. There may be no addition to the maximum price of fresh fish and seafood for breaking large containers, and repacking to supply certain customers with different types of fish.
Haulage of fish. The Regulation establishes maximum prices for a producer of fresh fish "at the port of entry ... ex vessel, i.e. in the customary way in which the particular species is landed at that port • •" Section 2(a). The following are interpretations relating to haulage of fish.
(1) If fishermen at a particular port of entry customarily delivered fish to a purchaser's place of business a fisherman may not discontinue the delivery service, unless the maximum price to the purchaser is reduced by an amount equal to the cost of transporting the fish from the port of entry to the purchaser's place of business.
(2) If a fisherman customarily delivered fish only at the port, then the purchaser may pay a service charge for haulage from the port of entry to his place of business in an amount pursuant to Regulation No. 165 (Services).
Icing charges. Icing charges may not be added to the maximum prices of fresh fish and seafood.
Definitions
Halibut, Table B(23) means all halibut of the east and west coast.
Maximum Price Regulation No. 469
LIVE HOGS
Violations and Evasions
Fill practice, (a) A dealer buys hogs on the basis of their weights at his country buying station. Later in the same day he resells the hogs after reweighing them at his buying station.
Question: May the dealer fill the hogs between weighings?
Answer: No. It is a violation of the Regulation, Section 11(b), to feed or water hogs on the day of sale, prior to weighing. If hogs are resold the same day, they also may not be filled between weighings.
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(b) The feeding and watering prohibition. Section 11(b), refers only to fill practice at markets. It is not a violation of the Regulation to feed hogs on the farm on the day of shipment to market or to feed them in transit.
Definitions
Fann as a buying station. A farm is not a buying station within the meaning of Section ¿(d), unless the farmer primarily is engaged in the business of buying and selling hogs from other producers, and the farm is generally regarded in the vicinity as a hog market to which producers bring their hogs for sale.
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POULTRY, EGGS AND DAIRY PRODUCTS
Maximum Price Regulation No. 269
POULTRY
Applicability
Producer who also purchases live poultry. A retail chain store company grows some of the poultry which it sells and purchases the balance alive. The company has a processing plant which kills, dresses, picks, and ices the poultry, and ships it to the company’s retail outlet stores. The Regulation is applicable to the retail sales of both the grown and the purchased poultry.
Auctioneers. The Regulation applies to auctioneers of poultry; they may not sell at prices higher than the maximum established in the Regulation.
Price Determination
Sales to United States Government. A wholesaler who sells less than 10,000 pounds of poultry to the United Stales Government may take the markup set forth in Table B(l) for "any type of buyer".
Pullets, young female chickens which have not reached egg production, are priced on the same basis as broilers, fryers or roasters, according to weight size. However, young female chickens which have come into egg production are fowl, not pullets,, and are priced as fowl according to weight size.
Auction sales - agricultural college. An agricultural college may not auction poultry in con-nection with a poultry exhibit at prices above the legal ceiling.
"Freight rates" - tare and icing. A charge for tare and icing may not be added to the maximum prices. The "freight rate" factor of 1.22 times the carlot railroad freight rate for dressed poultry includes the cost of tar and icing, Section 1429.19(c).
Federal transportation tax. Under Supplementary Order No. 13-Tax on Transportation of Property imposed by Revenue Act ofl942, the 3% tax on freight rates is treated by OPA as an increase in freight. Therefore, in determining the freight rate for dressed poultry under the Regulation, the 3% tax is added to the lowest carlot freight rate and then multiplied by 1.22, Section 1429.19(c)(1).
Transporting live poultry. A wholesaler who transports live poultry for more than 30 miles to a buyer in another city may take either the permitted increase in Section 1429.21(a)(1), or the wholesaler’s increase in Table B(l) for delivered sales beyond 25 miles. He may not take both increases. For example: A wholesaler transports live ducks 65 miles from his place of business in Center Moriches, Long Island to New York City and sells them to a New York wholesaler. The seller may charge either the New York base price for live ducks plus 1/ per pound permitted increase for transportation, or he may charge the Center Moriches base price plus 2/ per pound for delivery beyond 25 miles.
In order to add transportation costs to the maximum price of live poultry, a seller must have actually incurred the costs of hauling the poultry to the buyer’s place of business. The seller may pay such charges to an independent trucker, or pay it in the form of salary, fees or commission to his own employees or agent; not exceeding, however, the increase listed in the Regulation for the actual distance the poultry was hauled.
Sales by producer or processing plants at retail - transportation. Where a producer or processing plant sells live poultry ilems at retail, and de I ermines~"the maximum price under Section 1429.22, entitled Maximum Prices for poultry items when sold by producers or processing plants at retail, the permitted increase for transporting live poultry, Section 1429.21(a)(1), may not be added.
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F.o.b. sales to canner for U. S. Government. A person who sells turkey, f.o.b. his shipping point to a purchaser canning for the U.S. Government, Section 1429.20(d), may not add the permitted increase of one-half cent for delivered sales by "any type of seller", Table B(5). The seller who elects to sell on an f.o.b. basis is not permitted to also add the increase granted for delivered sales.
Poultry exchange rules. Where the rules of a local poultry exchange are at variance with the provisions of the Regulation, the Regulation takes precedence, and the poultry exchange determines its maximum prices which are in excess of the maximum.
Customary receiving point. A restaurant purchases poultry from a farmer who delivers the poultry to a custom slaughterer hired by the restaurant. The custom slaughterer processes the poultry and then delivers it to a storage warehouse where the restaurant picks it up. The producer in this transaction may not take the 1 1/2/ permitted increase in Table B(8) because he has not delivered the poultry to the buyer’s customary receiving point, i.e., to the restaurant. A processing plant, even though it operates under contract to a restaurant, is not a restaurant's customary receiving point.
"Distributive branch" of processor. See page 12:3.
Sales by processors to commercial firms. A processor sells processed turkeys in large quantities to industrial and commercial firms. The firms present the turkeys as gifts to their employees. These sales by the processor are not sales at retail, because the commercial and industrial firms are not ultimate consumers under Section 1429.22(a). Therefore, the processor may not add the permitted mark-up, Section 1429.22(a)(2), for sales at retail.
Wholesaler- sales negotiated from a distribution office. Sales negotiated through seller's distribution office for shipment Ln excess of VS miles therefrom, but not in excess of 75 miles from the seller's processing plant, must be included in computing the dollar volume of sales under Section 1429.21(b)(5)(iv).
Classifioation.
Hotel supply house. A hotel supply house is a wholesaler, not a commercial user; therefore sales may not be made to them under item 5 of Table B at 1/2 out over the base price.
Breeder turkeys are classified as "old turkeys" since they are mature birds with hardened breast bones.
"Capon slips." A caponized male bird, fairly well fatted, but showing slight evidence of incomplete caponizing and otherwise conforming to the specifications for U.S. Choice Roasters, in a Grade B capon and must sell at 1 1/2/ per pound less than that of a Grade A capon. A caponized male bird, poorly fatted, but showing evidence of incomplete caponizing and otherwise conforming to the specifications for U.S. Commercial Roasters in a Grade C capon and must sell at 4/ per pound less than a Grade A capon.
Violations and Evasions
Splitting mark-up. A processing plant hires an independent wholesale house to sell poultry as its agent. The agent charges the wholesale markup allowed in Table B, and then remits part of such markup to the processors. This practice is a violation of the Regulation. An agent of a processor is not a wholesaler, Section 1429.21(b)(5)(iv)(c)(i), and therefore, an independent wholesaler who remits any portion of his permitted increase to a processing plant is violating the Regulation even, though he may have been appointed as sales agent for the processor. Any arrangement by which an independent wholesale house pays more than the maximum price for poultry as established in the Regulation is a violation of the Regulation.
Definitions.
"Commercial user" as that term is used in Table B of Section 1429.21 does not include "wholesalers".
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"Distributive branch" of processor. A west coast cooperative appointed a Chicago wholesaler to handle its sales of turkeys. The Chicago wholesaler, a firm, takes title to the turkeys before selling them. The Chicago wholesaler is not a "distributive branch", Section 1429.21(b) (5), of the cooperative since it is not owned or under the control of the cooperative. The cooperative may not take the wholesaler's permitted increase and reimburse the Chicago firm on a comission basis.
Wholesaler - seller who receives and sells poultry at a public ice house. A turkey grower's association receives its shipments ab a public ice bouse, sells from the public ice house and makes local delivered sales by hired carrier. The association is not a "wholesaler" within the meaning of Section 1429.21(b)(5)(ii), since it does not maintain a business establishment where it receives and stocks poultry items, and from it sells or distributes such poultry items.
Quick-frozen eviscerated poultry - "cartons or boxes". "Cartons or boxes" used for quick frozen eviscerated poultry, Section 1429.19(1)(4), includes barrels and other tight sanitary shipping containers, provided that the poultry is so packed as to facilitate quick freezing.
"Special service sale" as used in Table B and as defined in Section 1429.21(b)(7) does not Include sales of poultry purchased live by a wholesaler and then dressed, assorted and delivered to fried chicken specialty restaurants. The definition in the Regulation requires the seller to remove poultry (for more uniform grading) from the wholesale package.
Poultry packed in baskets. Dressed, drawn or quick-frozen eviscerated poultry, packed in baskets, meets the requirements of "box-packed form", Section 1429.19(h)(5), provided that the baskets are of substantial wooden construction, and are equipped with liners and have wooden tops.
Records and Reports
Dressed poultry. The manifest requirements for shipments of poultry, Section 1429.4(b), apply to all poultry items, live and dressed.
Maximum Price Regulation No. 289
DAIRY PRODUCTS
Applioab ility
Whipped butter. The Regulation applies to sales of whipped butter, unsalted butter, and any other butter "made exclusively from milk or cream, or both, ... and containing not less than 80% by weight of milk fat . . ♦," Section 20(1)(1).
Farm butter. The Regulation applies to farm butter. If for any reason the farm butter does not meet the minimum standards for butter set forth in Regulation No. 289, Section 20(1)(1) it is a milk product covered by Regulation No. 280 (Maximum Price for Specific Food Products).
Price Determination
Sale of bulk butter - f.o.b. creamery. A creamery in Minnesota sells bulk butter f.o.b. its creamery to purchasers in New York and in California. The creamery's maximum price for both sales is the same, namely that established by Section 20(a)(2)(iii) for delivery in Minnesota. The butter is considered'"delivered" at the creamery in Minnesota, since butter sold f.o.b. any point is considered to be "delivered" to the purchaser at that point, Section 20(a)(2)(xiii).
Sales to procurement agencies - special packaging costs. Where butter is sold to procurement agencies, a seller may add only ■the direct cost of bhespecial export packaging permitted under Supplementary Order No. 34 (Packing Expenses and Sales to Procurement Agencies). The packaging allowances published by a trade association are not controlling.
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Definitions
Bluehill cheese is neither Cheddar nor processed cheese, and hence the Regulation does not apply. Regulation No. 280 (Maximum Price for Specific Food Products) applies.
A "Federal School" qualifying for the markup in Section 20(a)(6)(ii), is a school owned and operated by the Federal Government. It includes also a "contract school" which is defined under Section 1598.1(a)(1) of Food Distribution Regulation No. 2 as followss A contract school "means and includes any person who is feeding, pursuant to a written contract with any agency of the U. S., personnel of the armed services of the U. S., fed under the command of a commissioned or non-commissioned officer or other authorized representative of the armed services of the U. S., and who is specifically authorized by the armed service concerned to purchase, set aside and restrict food pursuant to this regulation? A school under private direction which does not qualify as a "contract school" is not a " federal school", and therefore it may not take the markup on deliveries of butter to "federal schools."
Records and Reports
Invoice - butter. Under Section 5, the invoice or sales slip must contain a description of the butler sol 37 i.e., the grade or score of the butter, whether it is in bulk or print or packaged, including the particular type of print or package.
Maximum Price Regulation No. 329
PURCHASES OF MILK FROM PRODUCERS FOR RESALE AS FLUID MILK
Applicability
Purchases of bulk milk for fluid uses. The Regulation applies to the purchase of bulk milk from producers where the bulk milk is subsequently used or subsequently resold as fluid skim' milk, buttermilk or chocolate milk. However, the Regulation does not apply to the purchase of bulk milk from producers where the bulk milk is used in manufacturing dairy products, Section 1351.405(c) entitled Exempt Sales.
Violations and Evasions
Cooperatives - purchase price determined by use of milk - change in use. During the base period a milk cooperative association paid ils producer members upon a use classification basis. The producers received a higher return for milk sold for fluid uses than for that sold for manufacturing uses, because milk sold for manufactured uses was considered "surplus milk". If the co-operative now wishes to sell its "surplus milk" for fluid uses in order to increase its return to its member, it will not be a violation of the Regulation, provided that the price for the purchase of milk for fluid uses does not exceed the maximum price established in the Regulation.
Maximum Price Regulation No. 333
EGGS AND EGG PRODUCTS
Price Determination
Charge for containers. The permitted allowance of 2/ for each retail carton of one dozen eggs, Section 1429.76(a), is added after determining the maximum price for the eggs without the carton.
Definitions
"Current receipt eggs", pursuant to Section 1429.65(a)(3), must have a "net weight of not less than 43 pounds per 30 dozen for the lot sold." This means that the lot sold must average 43 pounds net weight per case.
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IRON AND STEEL
Price Schedule No, 4
IRON AND STEEL SCRAP
Applicability
General. The Schedule is applicable to sales to the consumer or to his broker. Both the seller and the buyer in such sales are subject to the Schedule. The Schedule establishes maximum prices for iron and steel scrap according to the foil wring categories:
(1) Iron and steel scrap other than railroad scrap.
(2) Iron and steel scrap originating from railroads.
(3) Cast iron scrap other than railroad scrap.
(4) Iron and steel scrap imported into the United States.
Dealer. The maximum prices in the Schedule are not applicable to the sale of scrap to a dealer, who must prepare the scrap before reselling it.
Sales to consigners. The Schedule is applicable to sales of iron and steel scrap to consumers or their brokers. The Schedule is not applicable if reusable iron and steel scrap is sold by a wrecker or other person to one who proposes to recondition ths scrap and then sell it as a reusable product.
Use of product by purchaser. The Schedule is applicable to the sale of street car axles and shafting bars wKTch the purchaser intends to cut, heat, shape and manufacture into gear forgings, pinion shafts, castings and similar items, since this material is not sold for re-use as oar axles, etc., but rather for manufacture into entirely different products.
Mining companies. Mining companies purchasing scrap for precipitation purposes in copper smelting operatings are "consumers* within the meaning of Section 1304.11(f).
Purchase of scrap for resale to an affiliated company. A corporation operates a soil pipe foundry on the same premises as a partnership which deals In scrap octal. The senior partner of the partnership is president of the corporation and the partners own 50% of the capital stock of the corporation. The purchases of all scrap by the partnership are subject to the Schedule, because of its close relationship with the consumer corporation.
Cancellation of special permission to basic open hearth consumers to purchase alloy free low phos. and sulphur turnings, the footnote to Section 1304.13(a)(2) of the Schedule, as' amended, automatically cancels the special permission previously granted under former footnote 7 to Section 1304.13(a)(2) to basic open hearth consumers to purchase alloy free low phos. and sulphur turnings at the electric furnace price.
Nickel steel scrap and ferro-nickel-steel scrap and ferro-nickel-lron scrap. See page 17:2.
Sale of selected steel plate to trade schools. Seo page 13:28.
Rail in ground. See page 13:18.
Price Determination
Unfilled orders or outstanding contracts. Irrespective of unfilled orders or outstand-ing contracts, 'no payment against del Ivories of iron and steel scrap nay be made at prices in excess of those established by the Schedule. Whether or not there is an
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obligation to deliver scrap under outstanding contracts is a matter of private contract law. However, OPA has consistently ruled that no payments against deliveries of iron and steel scrap may be made in exeess of the maximum prices effective at the time of delivery.
Subsidiary company scrap. When a railroad is a subsidiary of another railroad and the parent railroad has in the past sold the subsidiary’s scrap, OPA has authorised maximum prices for the parent railroad to include the subsidiary railroad. Where two or more joint owners (railroad companies) of a company have sold the scrap of the jointly owned company, they may continue to do so.
Sale of scrap by Navy, Since the Schedule only establishes maximum prices on sales to consumers or bheir brokers, if the Navy sells to someone other than a consumer or his broker, the Schedule does not apply; the Navy should require an affidavit from the purchasers of the scrap stating that on resale to consumers, the prices will be in accordance with the Schedule«
Mixed shipment« Where No. 1 bundles and machine shop turnings are included in the same car, the mixed shipment provision, Seotion 13O4.13(a)(8j(i), is applicable even though the two grades are segregated in the car by means of a bulkhead«
Mixed cast and steel scrap. The mixed shipment provisions of the Schedule do not apply merely -bo mixtures' of various grades of steel or various grades of cast« These provisions apply where steel and oast scrap are mixed in the same vehicle«
Tube scrap« The maximum price for tube scrap is determined by Section 1304.13(a)(6), which requires prior approval by OPA for unlisted grades deemed superior to No. 1 heavy melting steel. Tube scrap was eliminated as a listed grade in Section 1304.13(a)(2), August 14, 1942, Amendoent No« 7« One of the tests applied in* determining the premium which this grade of scrap may command over No« 1 heavy melting steel, is the average differential above the price of the base grade. No. 1 heavy melting steel, which the seller received during the base period September 1, 1940, to January 31, 1941«
Black sheet scrap, such as auto body and fender stock, suitable for preparation into No, 2 bundles," Is unprepared No. 2 bundles and nay be sold at a price not to exceed $4 per gross ton below the maximum price for No. 2 bundles« Such scrap is not to be considered as the unprepared form of No. 2 busheling. •
Unstrippod diesel and tractor engines are an inferior, unlisted grade of oast iron scrap, and the maximum price should be determined under Section 1304.15(a)(4), "Grades inferior to No« 1 cupola cast"; in the absence of adequate base period experience, the applicable maximum price for "Heavy Breakable Cast," Item 6, mhy be used«
Nickel steel scrap and ferro-niokel-steel scrap and ferro-nlekel-iron scrap. s«« page 17»2.
Classification - light galvanised sheets* The maximum price for light galvanised sheets of large slses and less than 1/S Inch in thickness is $6.00 per gross ton below No« 1 heavy melting steel« This scrap is classified as unprepared No« 3 bundles, and hence has an adjustment of minus $2.00 for that grade, and because unprepared, a minus $4,00 adjustment, or a total of $6.00 below No. 1 heavy melting steel«
Annealing boxes« Steel annealing boxes are unprepared No. 1 heavy melting steel and are priced at $3«50 per gross ton below No« 1 heavy melting steel« Cast or malleable iron annealing boxes are unprepared oast iron and are priced at $2.50 per gross ton below the price of No« 1 cupola cast, that is, at the same price as heavy breakable cast«
Shipment of turnings "direct from industrial producer.” Where dealers purchase alloy free turnings and heavy burnings from producers who have no railroad facilities, or do not produce in sufficient quantities to load a railroad oar each day, or do not have adequate storage space, and therefore the dealers haul the turnings to railroad cars at yards leased or owned by them for loading purposes only, the shipments are not
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"direct from the industrial producer* within the meaning of the footnote to Section 1304.13(a)(2). Accordingly, the maximum price for such turnips is that for «bewailing turnings.
Basing point. The amendment to Section 1304.13(d)(4) exception 3(i), miring . Washington a remote State for purposes of establishing delivered prices, does not remove Seattle, Washington, as a basing point.
Use of any point within basing point in establishing shipping point price. In computing maximum shipping point prices under SecH'dn 13UT,13to) (11(1'1), the lowest establ is he d charge for transporting scrap from the shipping point to any point within the basing point may be used. Thus, where the freight from Herrin, Illinois, to St. Louis, Missouri, is $1.97 per gross ton and to East St. Louis is $1.51 per gross ton, the lower figure ($1.51) may be deducted from the basing point price, since East St. Louis is included in the St. Louis basing point.
Detinned scrap - preparation in transit. A corporation which purchased tin-coated material and moved the material to its detinning plant where the detinned scrap is baled and sold to a scrap consumer, nay not charge the consumer a preparation fee of $4.00 per gross ton, nor add the transportation charges to the detinning plant under Section 1304.13(e). The maximum shipping point price for the bundles must be computed in the same manner as the maximum shipping point price applicable to an ordinary dealer preparing bundles, and all costs prior to placing the scrap at its shipping point must be absorbed by the preparer.
Preparation in-transit. Where a consumer purchases unprepared remote scrap which is to be prepared in-transit in accordance with Section 1304.13(e)(4), he may not pay a higher price at the remote shipping point than would be allowable on a direct shipment of the scrap from the remote shipping point to the consumer's plant. Thus, if the maximum shipping point price of body «nd fender stock at a remote shipping point is $9.00 per gross ton, a consumer purchasing such scrap for preparation in-transit may not pay $10.00 per gross ton at the remote shipping point, even though the bundler is willing to accept $3.00 rather than a $4.00 preparation fee.
Preparation by dealer of scrap in-transit. The Schedule does not apply to the price of unprepared scrap purchased by a dealer in his normal operations as a dealer; however, where a dealer prepares scrap in-transit in accordance with the provisions of Section 1304.13(e)(5), the price paid for the allocated scrap at the original shipping point is subject to the Regulation, since in this case the sale of the unprepared scrap at the original shipping point is a sale to a consumer.
Allocation of remote scrap after preparation. Where, pursuant to Section 1304.13(e)(4), the C Steel Company purchased remote scrap at remote shipping points and routed the material to the D Company’s plant for preparation in-transit, and after preparation the War Production Board allocated the scrap to the J Steel Corporation, Section 1304.13(e)(4) is still applicable despite such diversion of the scrap; thus the maximum price of the scrap after preparation and loading on oars at the D Company* s plant is the same as it would have been for shipment to the C Steel Company.
Transportation costs where scrap is prepared in-transit. The preparat ion-ln-t ram it provision for unprepared scrap allocated by the War Production Board to a consumer lacking facilities for preparing the scrap. Section 1304.13(e)(5), is not applicable to truck movements to the preparer’s yard, even though oar load quantities are allocated; this provision is limited to the scrap moved to the preparer’s yard by rail. Therefore, where the scrap was moved to the preparer’s yard by truck, the scrap is not at its shipping point until after preparation, and the consumer may not bear the transportation costs incurred in moving the scrap to the preparer’s yard.
Shipping point under Appendix A. Where the operator of a scrap yard delivers scrap to the consumer by truck from the scrap yard to a railroad yard and thence by rail to the consumer’s plant, the scrap is not at its shipping point until it is place f.o.b. the railroad car.
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Shipping points. In the event a shipment of scrap is rejected and reworked, and then reshipped to another consumer the scrap assumes a new shipping point, computed on the basis of the point from which the sorap is reworked. Thus, where the scrap is shipped by rail after reworking, the sorap is at its shipping point after it has been reworked and loaded on cars.
Barge rate and shipping point price. In computing the maximum shipping point price, a dealer in sorap need not have yard facilities for handling water shipment of scrap, nor need he have handled sorap by barge movement, to be permitted to deduct the barge rate, the dock charge, and the lowest established switch from his yard to the dock at a particular point. Thus, if there is an established barge rate from point X to the most favorable basing point, a dealer having a yard away from the point X water front, may use such barge rate in computing his maximum shipping point price.
Quantity shipped and shipping point price. The maximum shipping point price is the same for any one grade of scrap, at any particular shipping point, regardless of the quantity of sorap shipped. Thus, a comparison should be made of the computation of the shipping point prices within a basing point where the same switching charge deduction is used, regardless of the tonnage shipped, and regardless of whether delivery is by rail or solely by motor vehicle.
Rail ***tching charges and "established rail carload rate." The "established rail carload rate for the lowest minimum weight,* Section 1304.15(b)(2)(ii), may be a Une haul rate or a switching rate, but the rate must be applicable to carloads switched from the rail siding nearest the shipping point to the rail siding nearest the point of delivery.
Stopover privilege for additional loading. Order No. 18 of the Office of Defense transportation requires cars of scrap to be loaded to their marked or visible capacity. Where dealers are given a stopover privilege for additional loading, the charge for such stopover after the scrap has left the shipping point, should be treated as a transportation charge, i.e., part of "the established charge for transporting the sorap from the shipping point to the point of delivery, by the mode of transportation smployed," see Section 1304.13(d)(1), Section 1304.14(a),and Section 1304.15(b)(1).
Charge Tor "dead freight•" Where dealers ship steel scrap to consumer, pursuant to an allocation order issued by the War Production Board, the "most economical transportation facilities” available must be employed, see Section 1304.13(d)(4) Exception 9. In such shipments, if the -freight rate on shipments of automobile scrap requires a minimum carload weight of 80,000 pounds, and where the sorap fills the oar but does not weigh 80,000 pounds, the consumer may absorb the actual freigh-fc incurred even though this includes "dead freight," since the transportation employ d is the most economical available«
Where transportation oharge for public motor vehicle carriers includes time of driver while vehicle is loaded and unloaded, in Portland, Oregon, the established transportation oharge tor public motor vehicle carriers, includes an item for the time of the driver while the vehicle is being unloaded and loaded. The driver does not actually participate in the loading or unloading and this charge is not paid for loading or unloading service, but is a part of the cost of having a public carrier truck transport the scrap. This item may be considered a part of the established public carrier oharge to be added to the shipping point in arriving at the maximum delivered prices where the scrap moves by a public carrier motor vehicle.
Storage charges. Where a company stored steel sorap in its yard for a dealer who did not have adequate storage space, the dealer retaining title to the sorap until its sale by the dealer to the consumer, the consumer may not pay the storage company for the storage service in an amount which, added to the dealer's oharge for the scrap, exceeds the maximum price for the scrap. The charges of the storage company must be absorbed within the maximum prices of the dealer to Whom it rendered the service«
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"Lowest established charge for transporting scrap«" As used in the Schedule, the "lowest established charge for transporting scrap" is the charge applicable to most grades of scrap iron, and not a charge limited to a few special types of scrap, even though the shipment is one of the special types of scrap. Thus, in determining the shipping point price for No« 1 bundles where the general scrap iron freight rate is $1*34 per gross ton, and there is also a $1*10 rate for sheared crop ends for rebundling purposes, the established charge is the $1.34 rate*
Shipping point s - scrap rejected and reshipped without reworking* A car of steel scrap is rejected at the point of delivery and, without further preparation, is reshipped to another consumer who accepts the car* The shipper is entitled to the shipping point price for the grade involved, at the original shipping point, plus freight to the point of rejection, plus freight to the new point of delivery, subject to the springboard limitation of Section 1304.13(d)(4)*
Rail-truck movement* Where foundries have no rail sidings and receive remote scrap by rail-truck movement, truck transportation is considered a continuation of the original rail transportation. The consumer may, therefore, absorb the railroad freight and the established trucking charge for the truck portion of the movement that is made in a public carrier, (subject of course to the "springboard" limitations of Section 1304.13 (d)(4) on steel scrap). If the truck portion of the movement is made in the dealer’s own motor vehicles, Section 1304.13(d)(1) and 1304.15(b)(1) limit the trucking charge to $1.00 per gross ton.
Preparation charges - "dealer". A company, although not a scrap dealer in the ordinary sense, may be a "dealer" within the meaning of Section 1304.13(a)(5), entitled Special preparation charges, since the term as used in (ii) of that section is applicable to any person engaged in the preparation of scrap.
Railroad scrap rejected by consumer and sold to a dealer. If scrap, originating from the P railroad, is sold to a dealer and reworked by the dealer, the scrap loses its railroad identity; and pursuant to Section 1304.14(e), entitled Rallraod scrap prepared by a dealer, the maximum price is established by Section 1304.13. If the scrap is merely sold to the dealer, and without reworking, shipped from the first consumer’s plant to another consumer, the applicable maximum price for the scrap is that from the P railroad directly to the second consumer.
Unprepared heavy melting steel scrap allocated prior to, but shipped after, January 22, 1943. Section 1304.13(e)(2) provides that the maximum price for unprepared scrap other than bundles shall be $3.50 less than the maximum prices for the corresponding grade of prepared scrap. Prior to Amendment No. 10, effective January 22, 1943, the reduction was $2.50 per gross ton. The reduction of $3.50 is applicable to unprepared heavy melting steel scrap shipped on or after January 22, 1943, even though it was shipped pursuant to an allocation order issued prior to that date.
Shipping point price - transportation charges. A company purchases unprepared scrap at various points throughout the upper peninsula of Michigan, taking title and possession of the scrap immediately upon purchase, and shipping it to its preparation yard in Michigan. The scrap Is prepared by the company at its yard and shipped to the company’s steel mill in another oity in Michigan.
The maximum shipping point price of the scrap should be determined at the point where the company purchases it; in determining the charge for transporting the scrap from the shipping point to the point of delivery, i.e., to the company’s preparation yard, the company may not exceed the transportation charges permitted under Section 1304.13(d)(1) and (2) and Section 1304.15(b)(1) and (2).
Delivery to carrier - date of bill of lading. The provisions of the Schedule in effect at tKe' t'ime iron or steel scrap is delivered to the carrier for shipment to the consumer, are the applicable provisions governing the maximum price for that scrap. The date of the railroad bill of lading, although usually coinciding with the date the scrap was delivered to the carrier, is not conclusive.
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Impossibility of water movement. A company's scrap yard in Newburgh, New York, is located away from the dock and~there are no rail facilities for switching scrap from points in Newburgh to any dock in that community. Normally, the company’s steel scrap is trucked to the dock for water movement to Buffalo, New York. During the winter when water movement is not available, the War Production Board allocates the scrap for rail shipment to consuners. Under Section 1304.13(c)(l)(ii), whenever the maximum shipping point price f.a.s. vessel at any dock is computed by using a vessel rate, and no rail facilities are available for switching scrap from points in the surrounding community to any dock in that community, the maximum shipping point price f.a.s. vessel may also apply f«c.b. oars at shipping points in that community. Therefore, the maximum shippix^ point price of steel scrap f.o.b. cars Newburgh would be the same as the maximum shipping point price f.a.s. vessel Newburgh.
Towing charge. A company maintains a loading dock in the Bronx, New York, and scrap handled on a brokerage basis moves by railroad lighter to New Jersey and then by rail, to destination. Although there is a through rate in the railroad tariffs for this combination movement, the company's dock in the Bronx is outside the free lighterage limits, and the extra towing charge incurred is added to the regular combination rate. The towage charge is not a dock charge, but is a part of the "established charge for transporting the scrap from the shipping point to the point of delivery by the mode of transportation employed," see Section 1304.13(d)(1). The 50/ per gross ton charge specified in Section 1304.13(d)(1), for movement by deck scow or railroad lighter is the counterpart of dock charges, and is not intended to cover actual transportation charges incurred in moving the scrap by combination of lighter and rail movement.
Welding rod butts. A shipyard has a considerable quantity of welding rod butts available for scrap. The butts are all over 1/8 inch in diameter and less than 2 feet in length. The rods are coated but may be charged into the furnace without removal of the coating. Welding rod butts are an unlisted grade inferior to No. 1 heavy melting steel, item, 1, and in the absence of the base period experience required under Seotion 1304.13(a)(7) should be priced at $3.50 per gross ton below No. 1 heavy melting steel.
Charges for delivering scrap in private truck. Where scrap is delivered by private truck, ibe Schedule permits the addition of a charge for transporting the scrap at "the established rail carload rate for the lowest minimum weight", see Section 1304.13 (d)(2)(H) and Section 1304.15(b)(2)(ii). This means that where there are several different carload rates, each progressively higher as the minimum weight requirement is reduced, the seller may use the rate with the lowest minimum weight requirement. Thus, if there is a carload rate with a 30,000 pound minimum, and a carload rate with a 50,000 pound minimum, the 30,000 pound rate may be used to determine the maximum trucking charge.
Mixed shipment. A carload of scrap shipped to a consumer is invoiced as containing item 10, shovelling turnings, but actually contains shovelling turnings only on top of the oar and item 8, machine shop turnings, an inferior grade, on the bottom. The consumer accepts only the top portion of the car containing the shovelling turnings and rejects the balance. The maximum price for item 10, shovelling turnings, the scrap removed and accepted, is the lower maximum price for the inferior grade rejected, item 8, machine shop turnings. The fact that the consumer did not accept and pay for the entire car of scrap is immaterial, since the carload was a "mixed shipment" within the meaning of Section 1304»13(a)(8)(i).
Cooperative scrap yard. Where a number of foundries operate a scrap yard on a cooperative basis for bbe purpose of preparing scrap at the yards, the yard becomes a point of delivery, and the maximum delivered prioe for scrap sold to the foundries and delivered to the cooperative yard is the maximum f.o.b. shipping point prioe of the scrap, plus the allowable transportation charges to the scrap yard. The foundries are jointly responsible for any violations of the Schedule, such as accepting upgraded material at the yard,or reselling at prices in excess of those established by the Schedule.
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Scrap which has lost its railroad origin. Scrap originating from a railroad and stored in the yard of a dealer, is considered io have lost its railroad origin, and therefore must be priced pursuant to Section 1304.14(e). However, this does not apply to railroad scrap to be prepared in transit pursuant to Section 1304.14(f)(2)*
Billet and bloom orops. Billet and bloom crops with a phosphorus content of .10% and under, and a sulphur content of .05% and under, conforming to the specifications of Item No* 13 in Section 1304*13(f) of the Schedule, when sold for basic electric furnace use and delivered to the consumer direct from the industrial producer thereof, may be sold at a premium of $2.50 per gross ton over the maximum price of No. 1 heavy melting steel*
"Machine shop turnings" and "mixed borings and turnings" - excessive oil. In order to meet the definitions of "machine shop turnings" and "mixed borings and Turnings", the Schedule provides that the turnings or borings must be free of "excessive oil". "Excessive oil" refers to oil in the borings and turnings which does not adhere to the material itself. Where a shipment of "machine shop turnings" or "mixed borings and turnings" contains excessive oil, the weight of the shipment must be reduced by an amount equal to the weight of the excessive oil in order to determine the maximum price of such shipment*
Transportation charges - shipment by motor vehicle. Section 1304.15(a)(1) provides that "where shipment of the scrap to the consumer is solely by motor vehicle, the scrap is at its shipping point when it has been loaded on such vehicle." The term "shipping point" as used in this section means the last point of loading of the vehicle prior to delivery to the consumer. Thus, where a dealer accumulates a load from several points, the final point of loading is the shipping point, and transportation charges may be added only from that point*
Broker's responsibility - dead freight* A dealer selling unprepared scrap through a broker, loaded the scrap on deck scows for vessel-rail shipment to a consumer* When the scrap was transferred into railroad oars, the oars were not loaded to the minimum weight required, and the broker places a claim against the dealer for an amount sufficient to cover the "dead freight" incurred* The dealer need not recognise the claim, since the broker is responsible for the trans-shipment of the unprepared scrap from deck-scow to railroad oars; the dealer's responsibility ended when the scrap was loaded on the deck-scows.
Commissions
Brokerage commission. See page 13:10.
Brokerage commission - freight charges. A company purchased scrap for delivery to a consumer, inspected the oars at the railroad yard and removed a small amount of oversise , material. In another case a large quantity of oversise material was removed by the company, and the oar switched without charge by the railroad to the company's yard, where the oversise material was removed and the remaining material shipped to the consumer* In neither of these oases may the company charge a brokerage commission under Section 1304.6, entitled Commissions, since the company is a "preparer" of scrap when it sorts and removes oversized material; the applicable transportation charge is the freight from the company's yard to the consumer's plant and not from the original shipping point, since the scrap is not at "shipping point" until after the preparation at the company's yard.
Loading costs. Where a broker purchased scrap unloaded at 50/ below the maximum price, loaded it at a cost of 50/ and sold it to a consumer at the maximum price, he may collect the brokerage commission. As long as the differential between the purchase price and the selling price is not greater than the actual loading cost incurred, the transaction is not within the prohibition that "no commission shall be payable unless.•• (3) the broker sells the scrap to the consumer at the same price at which he purchased it." Section 1304.6(a)(3)*
Upgrading - brokerage oommission* See page 13:10.
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Cris8-cros8ing sale«. See page 13:10.
P» . 27 a Burlap. • 7-g-9ounces. .065 . ’ .04
17^ . 27 • 3.50 to 4.25 cotton material ♦ •
• sheeting.•« .07 • .045
18-20 . 29-31 • Burlap cement bag.. . 10-12 .10 . .07
20 . 32 Jute cloth or heavy burlap 16 oz.•• .125 . .095
20 42 e Cotton qeemiess. • 15 ounces • • 23 . .20
20 . 42 • Cotton, out from 40" material • e •
4 linear yards per pound......... .12 . .09
21.00-21.99. 40 Cotton, 3.30 material*■ • 138 . .108
22.00-22.99. 36 Cotton, 3.30 matorial.............. • 135 . .105
22^ Special. 45 • Cotton, seamless bag.•••••••••••••• • 18 ounces•• .28 • 25
23.00-23.99. 36 Cotton, 3.30 material.............. .14 . .11
23 . 40 • Heavy gunny •2-l/5pounds. • 17 . .14
26 . 36 • Cotton, same quality as 36" 2.85 • • ♦
e • yd. construction cotton osnaburg e e •
cloth. .17 . .14
34 38 Jute same quality as short heavay .19 . .16
• • Green Coffee. • • •
34-36 . 52-54 Burlap* 7—1/2—9 ounces............. • 25 . .20
34-36 • 52-54 e Cotton, made of 5.50 to 6.15 yards • •
• per pound • • • 185 . .145
34-36 • 51 •185 • .145
36 . 40 • • • 7|-9 • 182 . .152
34-36 . • 56-58 • •» Cotton, 5.50-6.15 material e • .19 . .15 •
Processing by reselling agent or by purchaser. An emptier of bags may contract with a bag dealer to have the dealer pick up the emptier's unprocessed bags, process them, and then sell the bags for ths emptier’s account at the maximum price for processed bags. A bag dealer may not, however, receive unprocessed bags from a peddler, process them, and then purchase the bags from the peddler at the maximum processed prioe, less the dealer’s charge for the processing, the peddler thereby receiving a prioe higher than the maximum unprocessed price.
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Responsibility for sorting. Where sorting of mixed lots is done, pursuant to Section 1330. 81, the sorting or inspection may be done by either the seller, or the purchaser of the bags, or by both acting together. The party net participating in the inspection, however, must share the responsibility for the accuracy of the other's determination.
Sorting errors. Bona fide errors made in the sorting of second-hand bags do not require the lot be treated as a mixed lot, and the transaction may be completed at the maximum price for the grade, size, or quality of bags ordered by the seller and invoiced to him. However, an adjustment must be made for any inferior bags delivered, so that the price will not exceed the maximum price for any bag in the lot.
"Actual freight incurred." A person purchasing processed bags for resale may, pursuant to Section 1330.61(e), add the "actual freight incurred" in bringing such bags to his plant. The "actual freight incurred" includes the trucking charges from the freight terminal to the plant.
Charge for opening bags. The War Production Board's Order No. M-221 requires commorcial emptiers to remove the'contents of textile bags by opening the seams, unless such method is impracticable. Charges by commercial emptiers for opening bags by opening the seams, rather than the customary slashing method, may not be added to the maxi mum prices.
"Processed" or "in order" bag. In order to qualify as a "processed" or "in order" bag a second-hand bag must be of sound material, olean and free from holes; the Regulation does not require the performance of any specific processing operation or operations to make the bag "clean and free from holes." Thus, sound cotton bags which are clean and free from holes may be sold as "processed" or "in order" bags, even though nothing has been done to them except turning and «baking.
In line price. The maximum "in line" price for second-hand bags 25 x 44 inches, 16-ounce burlap, is 22 cents processed and 17 cents unprocessed.
Printing charges - plates furnished by purchaser. The maximum printing charges set forth in Section 1330.63, Appendix C, include the seller's cost of the printing-plates. Where the purchaser of printing furnishes his own special plates, the seller need not, however, make any deduction from the maximum charges.
The "in line" price for a sale of Australian heavy gunny jute bags 22 to 24 by 40 to 42 inches, weighing 2 bo 2-1/2 pounds is 18/ processed^ 13$/unprocessed, 12/ for unmendables.
Commissions
Brokerage fee. Payment of a brokerage fee by a user of second-hand bags, over and above bhe maximum price that the supplier is entitled to charge, constitutes a violation of the Regulation.
Premiums
Resale of processed bags. The premium for the resale of processed or in order bags to consumers, provided by Section 1330.61(e), is not applicable to sales of processed second-hand bags which the seller himself has processed. The premium is applicable only if the bags were purchased by him as processed or in order bags.
Premium for resale to subsidiary. The premium on the resale of second-hand processed bags, provided" for by Section 1830.61(e), may not be added to the maximum prices, where the reseller is under common ownership or control with the person from whom the processed bags were purchased.
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Glass if ication
"Wheat centals." A wheat cental bag is a hemmed top 10-ounce burlap bag having double folded seams, or Calcutta or domestic overstitched seams. It may be printed or unprinted, and turned or unturned.
Violations and Evasions
Brokerage fee. See page 14:6.
Deposit charge and bonus payment for return of bags. A company sold commodities in its own branded and therefore readily identifiable second-hand bags, taking a deposit of the maximum unprocessed price of 10 cents per bag for the return thereof, and retaining title to the bags. On the return of the bags, the company returned to the buyer of the commodity the deposit of 10 cents plus 9 cents per bag. At the same time the company bought ether bags from its customer which were invoiced at the maximum price. This transaction is not a violation of Section 1330.54 (Evasion) if the company paid the 9-oent bonus whether or not the customer sold other bags to it in addition to returning the company's bags. However, if the customer was required to sell other bags to the company in addition to returning the company’s bags in order to get the 9-cent bonus for the company’s bags, the transaction is equivalent to an agreement to pay more than the maximum prices for the bags purchased, and hence is a violation of the Regulation.
Definitions
"Prooessed"or "in order" bag. See page 14:6.
Records and Reports
Forms of records. Section 1330.55 does not prescribe any particular form for keeping records, provided that the necessary information required by the Regulation is kept.
Valuation for customs requirements. The reporting requirements of this Regulation are not applicable to the physical transfer of bags between companies, even though pursuant to customs requirements a value is placed upon the bags, where the bags are always returned after emptying to the seller of the product contained in the bags, and the transfer of the bags is continuous process in which the bags make several trips until they are worn out. The fact that a valuation is placed on the bags because of customs requirements does not make such transfer a sale within the meaning of the Regulation.
Grade of bag. The records of the seller and purchaser must show whether the second-hand bags sold or purchased are processed or unprocessed bags, since one of the record-keeping requirements of Section 1330.55(a) is that the records set forth the "grade" of secondhand bags.
Sale of bags at the cut size. See page 14:5.
Price Schedule No. 58
WOOL AND WOOL TOPS AND YARNS
Applicability
Pulled wool from pelts of sheep or lambs is subject to the Schedule.
"Shearlings." See page 14:1.
Woolen fabrics. See page 1:4.
Commission spinning. The Schedule is not applicable to commission spinning of wool, however, Regulation No. 157 (Apparel and Related Items for Military Purposes) is
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applicable to this service when the spinning is done in accordance with military specifications, pursuant to a contract or subcontract with a war procurement agency.
Bradford knitting yarns made from dark laps. See page 14:9.
Price Determination
General. The Schedule establishes maximum prices for the foil owing:
(a) Domestic pulled wools, for which the maximum prices are in dollar-and-oents per pound, f.o.b. shipping point.
(b) Wool tops, for which the maximum prices are in dollar-and-oents per pound, f.o.b. combing plant for domestically combed tops, and ex port of entry or domestic warehouse for imported tops.
(c) Wool noils, for which the maximum prices are in cents per pound, ex combing plant, ex warehouse, or ex carbonising plant for domestic noils, and duty paid prices, ex port of entry, domestic warehouse, or carbonizing plant for imported noils.
(d) Scoured domestic shorn wools, for which the maximum prices are in dollar-and-oents per pound, f.o.b. Eastern Seaboard.
(e) Wool yarns, for which the maximum prices are in dollar-and-oents per pound, f.o.b. shipping point«
(f) Foreign shorn wools, for which the maximum prices are in dollar-and-oents, except for British Wool Control wools.
(g) Foreign pulled wools, for which the maximum prices are in dollar-and-oents per pound, duty paid, f.o.b. pullery or scouring plant.
Computing actual cost by reweighing. In computing "actual cost" per pound of British Wool Control wools, there is no objection to reweighing wool on arrival in the United States. However, the "actual cost" of the wool must be computed, if the wool is reweighed after arrival, by dividing the total cost of the shipment by the number of pounds shown in the reweighing. For instance, if 1000 pounds were imported at 60 cents per pound, actual cost, and reweighed at 1100 pounds, the "actual cost" per pound is proportionately reduced«
South American dead wool. The maximum prices for South American dead wool, which is pulled or shorn from sheep found dead on the range, are determined by Section 1410.51 (b), dealing with unlisted types and grades of wool,
Garnetted noils. The maximum prioe for gametted noils ia determined by Section 1410.51 (b), dealing with unlisted types and grades of wool.
Additions for wool of choice character. The allowable additions established by Section 1410.65(a)(2) for foreign shorn wools of choice character apply to South American second clip wools as well as fleeces, provided that the second clip meets all the sped floetj ans for superfleeoes as set forth in that section« The allowable additions may not be charged if the wool is only "more or less" free from the defects enumerated, since the section requires complete freedom from the enumerated defects«
Addition for carbonized, neutralized and dusted wools. In datawniri'ing the total addition which may be added to a lot of carbonized neutralized and dusted wools, Section 1410,65 (d)(6), the seller may add the five cent addition per pound to the weight of the lot before it is processed.
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Charges for cables, financing, etc. In the sale of Australian, New Zealand, South African and other British Wool Control wool, the dealer nay add only the costs or charges specified in the Schedule. Accordingly, the cost of cables, bank commissions, or financing charges may not be added to the maximum prices.
War-risk insurance charges when trading in futures. The Schedule provides that the maximum price for wool sold by the importer shall be increased or decreased by an amount equal to the actual increase or decrease in war-risk insurance rates and freight rates. Since this provision applies only to increased or decreased rates actully paid, it is not applicable to the maximum prices of grease wool and wool tops futures contracts traded on the Wool Associates of the New York Cotton Exchange, Ino.
War-risk insurance - average rates. The Schedule provides that the maximum price to be paid for bops made of imported wool is to be adjusted to the war-risk insurance rate prevailing on the day the contract of sale of the tops is made. Since the rate varies, depending on whether the wool is going to a West Coast, Gulf, or East Coast port, the adjustment should be made on the basis of an average of the West Coast and Gulf port rates; the East Coast rate is not considered because no substantial amount of wool presently comes in at East Coast ports*
Credit terms. The credit period provided by Section 1410.64(a) for the sale of Bradford weaving yarns may not be removed or reduced, unless the seller compensates the purchaser by a corresponding reduction in the maximum prices established for sales with that credit period.
Marine and war-risk insurance charges for foreign pulled wool. On wools pulled in this country from imported 'skins, the marine insurance and war-risk insurance charges should be allocated to the wools actually produced from the skins, since the charges which may be added pursuant to Section 1410.66(e) are the "actual charges paid on the wool sold." In order to determine the actual insurance charges paid for the wool produced from skins imported into this country, it is necessary for the seller to determine separately the value of the skins and the wool on the skins, and apportion the insurance charges paid on the basis of that determination.
Bradford knitting yarns made from dark laps. The sale of Bradford knitting yarns made from dark laps is subject to the Schedule, and the maximum price of the yarns is determined under Section 1410.64(b). Although Bradford knitting yarns are ordinarily made from worsted tops, they may properly be made from laps. While laps are classified as waste material, they are no more than broken tops. Before they can be knitted into yarns they must be subjected to a further process to make them into a continuous strand. The resultant yarn, whether made from tops or laps, is identical. Therefore, although raw material costs would ordinarily be less for knitting yarns made from laps, the maximum price is the same.
Undyed merino yarns. The maximum prices for merino yarns, enumerated in Section 1410.64 (e')(2)(i), apply only to undyed yarns. If dyed, such yarns are subject to the General Maximum Price Regulation, or Regulation No. 157 pursuant to Section 1410.64(e)(2)(ii).
Open-price billing. A seller who applies for authority to determine a maximum price under Section 1410.51(b)(3) may bill the wool at an open price or deliver it at a tentatively agreed price, subject to adjustment to the approved maximum price, if the maxi mt an is lower than the tentatively agreed price. The seller may accept part payment of the tentative price or, if he wishes, may have the buyer place the full tentative purchase price in escrow pending the determination of the maximum prices. However, the tentative price may not be used by the purchaser to compute his resale price, where that price is based on the cost of the wool.
Mohair produced in the British Empire. Cape mohair, or any other type of mohair, produced lnThe"Britl8h Empire is noT controlled by the British Wool Commission, and therefore, is priced under the base period freeze provision of Section 1410.51(b).
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Sale of damaged wool purchased from an insurance company - dealer’s markup. An insurance company sells damaged British Wool Chntrolwools'^hich it had acquired from an importing dealer in connection with an adjustment of losses under a contract with the dealer. The sale by the insurance company was exempt from price control pursuant to Supplementary Order No. 73(Exemption of Damaged Commodities from Prioe Control). The purchaser from the insurance company, a dealer, desires to know the maximum prioe at which he can resell the wool. The maximum price of the dealer is the landed in bond cost of the wool, under Section 1410.65(d). The wool cannot qualify for the "dealer’s markup" even though it was previously imported by another "dealer," because the transfer of the wool to the insurance company, upon payment of the amount specified in the insurance contract, did not constitute a "resale" of the wool.
Commissions
Control w See page 16:9, Manufacturers who sell to users.
"Farm equipment." See page 16:9
"In the course of business." See page 16clQ, Purchase in the course of business - purchase by a farmer. '
"Back bands." See page 16:9
Records and Reports
Parts. While the Regulation requires the selle r to keep a record of each individual sale of farm implement parts, when a group of parts is sold as an assembled unit it is not necessary to list each part separately.
Invoice. The itemized invoice required by Seotion 1361^5 must be furnished in connection with every r etail sale of farm equipment for $15 or more for which there is a suggested retail price, whether or not the particular sale is below the suggested retail price or below the maximum prioe established by the Regulation.
Maximum Price Regulation No. 134
CONSTRUCTION AND ROAD MAINTENANCE EQUIPMENT RENTAL PRICES AND CHARGES FOR OPERATING AND MAINTENANCE OR REPAIR AND REBUIIDING SERVICES
Applicability
Lease made prior to effective date of Regulation. The Regulation applies to rental charges after the effective date of the Regulation, even though the lease was made and the equipment delivered before that date.
Maintenance services formerly subject to Regulation No. 136. Pursuant to Amendment No.3, effective October 22, 1942, Regulation No. 134 is applicable to maximum charges for operating or maintenance services and services rendered on "fully operated" and similar service contracts on construction and road maintenance equipment; such services are no longer subject to Regulation No. 136 (Machines and Parts, and Machinery Services). Therefore, the maximum charges for such services are established by Regulation No. 134, even though they are lower than the rates which were specifically approved under the then applicable provisions of Regulation No. 136*
Sale pursuant to rental contract* See page 16:15.
Rental of lighting plants. See page 16:19.
Pile driving equipment, hammers. The Regulation is applicable to hammers attached to pile driving equipments
Jacks. See page 16:23.
"Integral" and "combination" trucks* See page 16:1
Price Determination
Sale pursuant to rental contract. See page 16:15.
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Contract price less than maximum price. The Regulation was extensively revised by Amendment lio. 8, effective October 22, 1942, and the maximum rental prices were increased in some instances. Where equipment was rented prior to October 22, 1942, at contract prices equal to the maximum prices then in effect, and was on the job continuously until after that date, Amendment No. 3 does not permit the lessor to increase the contract price to the new maximum price, unless the lessee consents*
Change of rates in contract continuing through October 22, 1942* Where equipment was rented prior to October ¿2, 1542, the effective date of Amendment No* 3, and worked, or was in the possession of the lessee continuously until some time after that date, the maximum rental for the equipment is computed by treating the time elapsing before and after October 22, 1942, as a single period of a week, or month, or a fraction thereof, and applying pro rata to that portion of the period elapsing prior to October 22, 1942, the pertinent rates for such period prior to Amendment No. 3, and applying pro rata to that portion of the period elapsing after October 22, 1942, the pertinent rates subsequent to Amendment No. 3.
Hourly rental* The rental of construction and maintenance equipment on an hourly basis may be continued under the Regulation, so long as the rental charge does not exceed the maximum daily, weekly, or monthly rental charge established by the Regulation. The maximum rental price for equipment rented by the hour and used for less than eight hours in one day is the applicable daily rate under the Regulation.
Additional accessories for welding machine* The maximum rental rates for an equipped welding machine include one helmet, 60 feet of cable, and one electrode holder; charges for additional accessories except extra cable are subject to Regulation No. 136 (Machines and Parts, and Machinery Services). Where a lessee does not require all the accessories included in an equipped welding machine, the lessor may charge any rental rate which does not exceed the maximum rental for ths equipped machine*
Standby equipment. Construction and road maintenance equipment which is merely Standby equipment for emergency purposes is not in "actual use" for the entire daily period under the Regulation, and therefore a charge may only be made for "possession" rental, i.e., rental not exceerding 8 hours per day, 48 hours per week, or 240 hours per month* However, the actual use of jack hammers, pumps, and similar small equipment which are on the job and ready for use, but ordinarily used at irregular and intermittent periods and to which a specific operator is not assigned, shall be determined by job hours*
Centrifugal pumps. The rental established under the Regulation for centrifugal pumps operabed by gasoline engines does not include the rental of the hose. A separate rental for the hose may be charged.
Transportation charges. Transportation charges which were customarily added, prior to the effective date of the Regulation, to the rental price of the equipment for the first month may continue to be charged. However, any new or additional transportation charge, put in effect after the effective date of the Regulation, is an evasion of the Regulation,
Rental of truck crane - liability for maintenance and repair.
(1) Where a truck crane was rented on an hourly basis, in any period prior to October 22, 1942, (effective date of Amendment No. 3 which substantially revised the Regulation), the burden of all maintenance was specifically imposed upon the lessor; the burden of all repair, including* repair due to normal wear and tear as well as that due to other causes, was also upon the lessor*
(2) Where a truck crane is rented on an hourly basis in any period on or after October 22, 1942, the burden of al 1 maintenance and all repair continues to be upon the lessor, except as is set forth in (4) below*
(3) Where a truck crane is rented on a daily, weekly or monthly basis in any
16:12
period subsequent to October 22, 1942, the lessor may by agreement, place the burden of maintenance and repair upon the lessee, except the burden of repair due to normal wear and tear which the lessor must assume*
(4) Where a truck crane is rented on an hourly basis at any time on or after October 22, 1942, and the lessee retains possession for more than one weekly period, the weekly or monthly rentals would apply, and liability for maintenance and repair would shift to the basis set forth in (3) above*
Repair, cleaning, or overhauling of leased equipment* ^he following concern the rental charges on leased equipment when it is undergoing repair, cleaning or overhauling:
(1) Equipment on bare rental basis - normal wear* Where equipment is on bare rental basis in possession of lessee and breaks down~3ue to normal wear and tear, the lessor cannot charge the lessee any rental whatsoever for the time during which the equipment is under repair; the expense of the necessary repairs is to be borne by lessor* The reason for the rule is that where equipment does not stand up under normal operating conditions, the lessor is deemed to have removed it from lessee’s possession, as well as deprived him of its use*
(2) Equipment on bare rental basis - other than normal wear* Where equipment is on bare rental basis in possession of lessee and breaks down from some cause other than normal wear and tear, such as abuse or accident, the lessor can charge lessee rental for possession (not exceeding applicable maximum), but not for "actual use", during the time the equipment is under repair* The expense of the necessary repairs may also be charged to the lessee*
(3) Equipment on fully operated basis* Where equipment is on lessee’s job on a fully operated basis and it is shut down for repair, overhauling or cleaning, the lessor cannot charge the lessee any rental or services whatsoever for the time during which the equipment is shut down. The expense of such repair, overhauling or cleaning is to be borne by the lessor, irrespective of whether the shut down is due to normal wear and tear, or some other cause such as abuse or accident*
(4) Job hours and "actual use"* (a) As to equipment such as tractors, cranes and shovels, to which a crew must necessarily be assigned, the crew’s time may be considered as the hours of "actual use" of the equipment*
(b) As to jack hammers, pumps and similar small equipment to which an operator is ordinarily not assigned, the job hours may be considered as the hours of "actual use*"
In regard to (a) above, the rule expressed in (3) applies regardless of fact that the crew may be assigned and paid for the shat down period, because such shut down is lessor’s liability, and where lessee is denied possession or use of equipment, the lessor cannot charge lessee for rental of services*
In regard to (b) above, the rule expressed in (1) or (2) would apply, because this type of equipment is rented bare and liability for lost time would depend on the cause of the breakdown«
Rental of components of rook crushing plant* The rental price of various components of a rock crushing plant should be determined by reference to Regulation No. 134 with respect to those components which are covered by that Regulation* The rental of the items not covered by Regulation No* 134 should be determined wider Regulation No* 136 (Machines and Parts, and Machinery Services).
Lease on daily basis at termination of one-month lease* Equipment was leased on a monthly basis for one month, and at the end of the month the parties contracted for rental on a daily basis. The lessee, without having returned the equipment to the lessor’s possession, retained possession for nine additional days, using it for sixty-four hours
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in that time. The maximum rental for the nine days beyond the first month is l/3Oth of the applicable rate per month for each daily period, or l/240th of the applicable rate per month for each hour of actual use, see Section 1399.2(c)(3). Section 1399.2(a), entitled Daily basis, is not applicable, since Section 1399.2(c)(3) applies in any case where equipment remains in possession of the lessee for part of a monthly period beyond a full monthly period, regardless of the contract basis which the parties established for the additional period, and regardless of their good faith in terminating their contract at the end of the monthly period.
Monthly rental’s and billing practices and payments. The definition of "monthly period" In Section 1399.12(a)(8), and as used in, determining maximum prices in Section 1399.2 (c)(3), does not determine billing practices or method of payment. The Regulation does not prevent parties from pro-rating, splitting or otherwise arranging their payments in any manner that is mutually satisfactory, so long as the maximum prices of the Regulation are not exceeded. For example, where equipment is rented on a monthly basis, the parties may arrange for weekly, or even daily payments, so long as the amount paid for any one monthly period does not exceed the applicable maximum price.
Rental during transportation of equipment. A lessor of equipment subject to the Regulation may charge for the rental of the equipment during the time it is being transport»ri to and from a job only if it was his customary practice to do so, see Section 1399,8.
Insurance charges. Where equipment is rented on a bare rental basis, charges for insure nc* wMnh the lessor carries when he is in possession of the equipment may not be added to the maximum rates under the Regulation; such insurance is part of the costs df ownership and does not arise from the rental agreement. However, such insurance as is necessary to protect the lessor’s equipment from risks arising as a result of the lessee's possession and use of the equipment under the rental agreement may be charged to the lessee. Such insurance charges may not exceed the premium actually paid.
Equipment "in the possession of the lessee." In determining the maximum rental prices of equipment according ho weekly or monthly rental rates, the question has arisen as to where "possession" of the equipment begins and ends. Generally, the beginning and ending of possession is a matter to be governed by the agreement of the parties, so long as that agreement does not assume the form of a device to evade the Regulation. Whatever reasonable and established practice a lessor had prior to the issuance of the Regulation, in regard to beginning and ending possession, he may continue if his lessees agree thereto. Thus, no objection was made to a lessor charging his lessee, in accordance with a practice of several years standing, from the time equipment was placed f.o.b. cars consigned to the lessee, until placed f.o.b. cars, consigned to the lessor.
Where a lessee, at a lessor's request, consigns equipment at the end of a job to another lessee at a distant point instead of consigning it back to the lessor, the consignor's possession was held to terminate when the equipment was loaded f.o,b. cars consigned to the next lessee.
Bituminous mixers. The listed rental charges for bituminous mixers in the Regulation include charges Tor the bucket loader. Therefore, no additional rental charge may be made for the loader.
Spying* mounted equipment. In order to obtain the additions specified in Section 1399,15 for sale's of welding machines containing "wheels with springs and brakes", the equipment must contain transverse springs on the front as well as on the rear ends and the springs must either be original equipment or of equivalent quality and utility. Also, the "brakes" must be automobile type brakes but they need not be applied to all four wheels if they operate efficiently when applied to two wheels. A mere bar which is placed in the spokes of wheels is not a "brake" within the meaning of this section.
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Taxes
Personal property tax. Where personal property taxes are levied against the owner of the leased machinery, the amount of such taxes cannot be paid by the lessee in addition to the maximum rates under the Regulation for the rental of the machinery, notwithstanding the terms of the lease.
Classification
Gasoline and Diesel engine powered crane. A crane which contains a gasoline engine is "gasoline engine powered*, even though it uses Diesel fuel. The type of engine in the equipment, rather than the kind of fuel used, determines the classification of the crane.
Violations and Evasions
Recapture clause - taxes and repairs during rental period. A clause in a rental purchase agreement to the effect that in the event of recapture of the machinery, the lessee shall bear the expense of taxes and repairs (including repairs due to ordinary wear and tear) during the rental period, does not constitute a violation of'the Regulation even though such expenses are paid in addition to the maximum price of the machinery.
16s14(a)
Maximum Price Regulation No* 136
MACHINES AND PARTS, AND MACHINERY SERVICE
Applicability
Casual sales. The Regulation is applicable to casual and sporadic sales as well as sales in continuous volume.
Wholesale sales by retail establishment* The exclusion from the Regulation of retail sales. Section 1390.2(f), does not exclude any wholesale sales, even though such sales are made by a store, shop, or mail-order house which sells predominantly to ultimate consumers.
Sale pursuant to rental contract. While the sale of a machine pursuant to a rental contract entered into prior to July 22, 1942, is specifically excluded from-the Regulation, Section 1390*2(j), the rental of such a machine is subject to Regulation No. 136, or if construction or'road maintenance equipment to Regulation No. 134 (Construction andRoad Maintenance Equipment Rental Prices and Charges for Operating and Maintenance or Repair and Rebuilding Services). Sales pursuant to a rental contract entered into on or after July 22, 1942, are subject to Regulation No. 136, and the condition of the machine at the time the contract is entered into, i.e*, new, rebuilt and guaranteed, or other second-hand conditions, determines the applicable maximum price. The "valuation" agreed upon at the time the rental contract is entered into may not exceed the maximum price applicable to the machine. Carrying charges to reimburse the lessor for financing, insurance and other expenses applicable to the renting of the machine are not part of the purchase price when transfer of title takes place, but rather are part of the rent paid for the machine. Hence, under a contract containing a recapture clause, where the option to purchase is exercised prior to the time the total rental payments over and above the carrying charges equal the valuation of the machine, the carrying charge may be deducted from the rental payments before the purchase price is computed. The payment made upon exercise of the option, plus the rental payments already made, less the carrying charge payments already made, may not exceed the maximum price under the Regulation*
Rental charges by public utility for substation equipment. Where a public utility rents to its customers equipment in any of the categories covered by the Regulation, such as transformers and substation devices, and the utility's rental charges therefor are a separate transaction with its oustamers and not an integral part of its regular rate charges for electric service, the rentals are subject to the Regulation, Section 1390.1 (b).
Navy Department facilities contracts and Defense Plant Corporation lease agreements* Under Mavy Department facilities contracts, a company acts as a general contractor in purchasing and installing machinery and equipment and is reimbursed by the Navy Department at cost. Title to the machinery passes from the manufacturer to the company and thereafter from the company to the Navy Department, the latter transfer often occurring after the machinery has been used* In purchases in excess of $200 the company must get the Navy Department's prior approval in writing, and the company is reimbursed for all authorized or approved expenditures made by it for or on account of the contract*
Under Defense Plant Corporation lease agreements, a company $cts as agent for the Corporation in purchasing machinery and equipment, and the Corporation makes payment directly to the sellers* Title is transferred directly to the Corporation but, in some oases, to expedite execution of the lease and production, the company has taken title in its name with the understanding that title will later be transferred to the Corporation at cost, in which latter oases the transfers of title are often not completed until the machinery has been used.
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The transfer of title by the company to the Navy Department or the Defense Plant Corporation, under the circumstances outlined above, may be made at oost to the company, provided that the cost does not exceed the maximum price established for the machinery or machine tools, new, under Regulation No« 136 or Schedule No. 67 (New Machine Tools); the company is acting only as nominee for the real parties in interest in the purchase of the machinery, where the transaction is later ratified by the acceptance of title to the machinery by the Navy Department or the Defense Plant Corporation«
Electrical contractors« The Regulation is applicable to electrical contractors as follows: '
(1) Equipment or material listed in Appendix A or Appendix B which is sold by a contractor at a retail price to an ultimate consumer, whether made inside or outside his shop or place of business, is exempt from the Regulation; the General Maximum Price Regulation applies to sales of such equipment or material, except as to sales of building and industrial equipment and materials on an installed or erected basis which are covered by Regulation No. 251 (Construction and Maintenance Services and Sales of Building and Industrial Equipment and Materials on an Installed or Erected Basis)«
(2) Sales of material or equipment covered by the Regulation when made by a contractor to an industrial, commercial or governmental user, whether made inside or outside his shop or place of business, are subject to the Regulation, unless such sales involve items usually sold to private consumers, such as householders, and are made at the retail prices which would be used in making sales to that class of purchasers« In the latter case the General Maximum Price Regulation applies, except that sales of building and industrial equipment and materials on an installed or erected basis, within the meaning of Regulation No« 251, are subject to that Regulation«
(3) The Regulation applies to the sale of material and equipment covered by Appendix A or B involved in contract work of the contractor, where the contract is on the basis oft (a) material, labor, and services, or (b) time and material, or (c) any other basis where payment is separately made for materials for equipment, except (d) a true "cost-plus" basis, which includes only those contracts in which a flat fee or percentage is added to actual costs, i«e,, costs which include no element of profit, or margin of overhead, or other mark-up or addition«
(4) Although strict cost-plus contracts are excluded from the Regulation, as explained above, a contractor entering into such a contract involving sales of equipment or material covered by the Regulation must file a report thereof under Section 1390.14 (Reports on Cost-Plus Contracts)«
(5) Compensation which a contractor receives solely for his services in making installations of material and equipment covered by the Regulation is specifically excluded for the Regulation by Section 1390.10(f); compensation for such services is * controlled by Regulation No« 251, except for that portion covered by Regulation No. 165 (Services) concerning the contractor's services principally as they relate to repair and maintenance of household, retail establishment and institutional equipment« In calculating maximum charges under Regulation No« 251, materials and equipment covered by Regulation No. 136 go in at maximum prices as determined under Regulation No. 136.
(6) A contractor's work in repairing, rebuilding, maintaining, or performing any of the other acts defined as 'Machinery services" by the Regulation, upon any material or equipment covered hereby, is included in the Regulation. If the contractor's work is not within the coverage of Regulation No« 136, Regulation No. 251, or Regulation No. 165 apply to such services.
(7) To the extent that a contractor's sales of material includes wire» cable, and cable accessories, as defined by Schedule No. 82 (Wire, Cable, and Cable Accessories), such sales are covered by that Schedule.
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Maintenance services formerly subject to Regulation No. 136. See page 16:11.
Elevator maintenance contracts which include the furnishing of materials are contracts involving the sale of a service and the sale of machines and parts under the Regulation«
Erecting and dismantling typesetting machines. See page 2:5.
Lumber carriers. The Regulation applies to the rental of and the repair services on lumber carriers as the rental or repair of "material handling equipment. Industrial (cars, trucks, racks, etc.)," Appendix A(g).
Plating service. The service of plating perishable tools, jigs, and parts is a "machinery service" covered by the Regulation.
Repair services on tractors. The Regulation is applicable to repair services on industrial and crawler tractors, even though the tractors are u^ed for agricultural purposes.
Components of combatant products - electrical subassemblies. The Regulation applies bo subassemblies listed in Appendices A or b', such as electrical subassemblies, even though such subassemblies ultimately become components of combatant products listed as exceptions in Supplementary Regulation No. 1.
Traded-in motors. The value of motors which are traded-in for new motors is determined by Section 189O.ll, sales of second-hand machines and parts.
Air coolers. The Regulation is not applicable to electrically driven room conditioners (air coolers).
Aircraft diesel engines used in tanks. Diesel engines designed for aircraft are not subject io the Regulation even though actually used in tanks.
Bakery equipment. Bakery pans, knives, pastry brushes, pastry guns, decorating tubes and sets, bread racks, and dough troughs are not subject to the Regulation; the General Maximum Price Regulation applies. Hand trucks used to move bread pans are subject to the Regulation.
Rentals of barges equipped with pile drivers or derricks. The rental of barges equipped with pile drivers is covered by the Regulation as a rental of "pile drivers," Appendix A(d); the rental of barges equipped with derricks is subject to the Regulation as a rental of "cranes (overhead, crawler, and locomotive) hoists and derricks," Appendix A(d).
Used transmission and trolley wire. See page 16:7 -
Barge with drag line. A barge with a drag line is subject to the Regulation as "dredging machinery, " Appendix A(d).
Hand or motor-driven blowers for blacksmith forges. Motor-driven blowers for blacksmith forges are subject to the Regulation under the item "fans and blowers," Appendix A.
"Industrial boilers," Appendix A(b), are steel boilers which are manufactured essentially for power or processing purposes. They include water tube, horizontal returns tubular, oil country, locomotive type, vertical tubular and scotch marine boilers. Cast iron boilers and steel boilers manufactured essentially for heating purposes are covered by Regulation No. 188 (Manufacturer's Maximum Prices for Specified Building Materials and Consumers' Goods Other Than Apparel). Parts manufactured for "industrial Boilers" are covered by Regulation No. 136; they are not subject to Regulation No. 236 (Heating Boiler Conversion Parts).
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Boiler tubes - sales by a boiler manufacturer:
Fabricated boiler tubes. Sales by a boiler manufacturer of fabricated tubes manufactured by him are covered by Appendix A(j). Sales by a boiler manufacturer of fabricated tubes which he did not manufacture are covered by Appendix B.
Unfabricated boiler tubes. Sales by a boiler manufacturer of unfabrioated tubes manufactured by him are covered by Schedule No. 6 (iron and Steel Products). Sales by a boiler manufacturer of unfabricated tubes which he did not manufacture are covered by Schedule No. 49 (Resale of Iron and Steel Products).
Coaxial cable (insulated with ceramic beads and compressed dry nitrogen) is subject to the Regulation as "Electrical wire, cable and cable accessories", Appendix B, since it is made of copper tubes or a tube and rod; it is not made of wire or assembly of wire and therefore is not covered by Section 1349.12 of Schedule No. 82 (Wire, Cable and Cable accessories).
Car movers are subject to the Regulation as "machines, tools, devices and appliances designed specifically for the installation, operation, maintenance and protection of tracks, yards, signals, rolling stock and motive power", Appendix A(f).
Cameras used by manufacturers in the making of patterns or templates, and special mapmaking cameras manufactured for the Federal Government are exempt as "photographic equipment," Appendix C of the Regulation.
Chucks and accessories. Chucks sold separately or with accessories, such as a hand control operating valve, air filter, automatic lubricator, or regulating valve unit, are covered by Appendix B of the Regulation. If the hand control operating valve is sold separately, the valve is not subject to the Regulation. If the automatic valve unit is sold separately, it is covered by Appendix A of the Regulation.
Clocks and clock works, interval timers, service recorders, etc., and repairs thereto. The Regulation applies to service recorders used in connection with machine operations, bracks, airplane flights, etc. under Section 1390.3^(h), Appendix A.
The Regulation applies to spring-driven or electric clocks and clock works, when used as parts or subassemblies of industrial instruments used for driving instrument charts, Section 1390.32(i), Appendix A. However, watchman's clocks, pay-roll clocks, clock time stamps, etc., used in industrial plants or factories are not covered by the Regulation, since usage is not determinative. An item must fall within one or more of the groups specifically mentioned in Appendix A or B of the Regulation, and clocks as suoh are not listed.
The Regulation applies to the repair of clock works, interval timers, service recorders, etc., as a machinery service, since those items are covered by the Regulation.
Coated electrodes for arc welding are included in the coverage of the Regulation, Ap-pendix A, under "arc and resistance welding equipment, electrodes and supplies."
Discarded or worn drills and augers from mine drilling machines. The purchase and sale of discarded or worn drills and augers from mine drilling machines are covered by the Regu-’ lation and the maximum price is established by Section 1390.11.
Forged steel grinding balls. The Regulation is applicable to forged steel grinding balls used in mines and for grinding ingredients of cement.
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Grab buckets are covered by Appendix A, "excavating and earth-moving machinery, " when they are manufactured by the manufacturer of the complete machine on which they are used, and by Appendix B when manufactured by a person other than the manufacturer of the complete machine.
Gum tape dispensing machine. The Regulation is applicable to gum tape dispensing machines of the type used in shipping rooms•
Handwriting recorders. A recording device which produces two to five hand-written copies of sales slips, delivery tickets, receiving records, bills of lading, or other business records is not a "machine" within the meaning of the Regulation; the General Maximum Price Regulation applies to the sale of such recorders.
Metal belt fasterners and joiners. The Regulation is applicable to the sale of metal belt fasterners and belt joiners used for industrial power transmission and conveying equipment.
Sale of parts in unassembled condition. Where a company sells mechanical supports, sockets tubes and wiring for commercial and industrial lighting equipment in unassembled condition to a purchaser who assembles a complete device therefrom, the sale by the company is covered by Section 1390.32(j) of the Regulation.
Electrically operated blueprinting and reproduction equipment and parts. The Regulation applies to electrically operated blueprinting and reproduction equipme"nt and parts.
Peel blades are not "machines" as defined in the Regulation; the General Maximum Price Regulationapplies.
Plate coating machines, manufactured according to specifications of Federal Government agencies and used to make plates for offset printing, although differing from the manufacturer’s standard plate coating machines, are subject to the Regulation as "printing machinery," Appendix A of the Regulation.
Power-driven rotary scrubbers used for scrubbing, polishing and deterging floors, are sub-ject to the Regulation as "brushes, industrial power-driven," Appendix B of the Regulation.
Radio head sets and similar apparatus attachable to radios in lieu of loud speakers, are subject to the Regulation as "radio transmitting and receiving apparatus and parts," since most of the use of such apparatus today is of a commercial rather than of a consumer nature.
Rock wool blankets. The Regulation is not applicable to the sale of rock wool blankets manufactured for industrial use, particularly for boiler insulation.
Street-sweeping machines. Self-propelled street-sweeping machines are subject to the Regu-lation as "road building and maintenance machinery," Appendix A(d).
Surgical instruments. The Regulation is not applicable to surgical instruments, suoh as knives, scalpels, lancets, and dissecting instruments; Regulation No. 188 applies.
Rental of lighting plants. The rental of Diesel driven lighting plants of 25,000 watts is subject to the Regulation as "commercial lighting equipment," Appendix A(e); it is not subject to Regulation No. 134 (Construction and Road Maintenance Equipment Rental Prices and Charges for Operating and Maintenance or Repair and Rebuilding Services).
Glass parts of lighting fixture for airports, airways and seadromes are covered by
Appendix B of the Regulation when sold with the complete lighting fixture or other parts thereof; if manufactured by the manufacturer of the complete lighting fixture.
16:19
they are covered by Appendix A as "airport, airways and seadromes lighting." If the parts are sold separately, they are covered by Regulation No. 188 (Manufacturers* Maximum Prices for Specified Building Materials and Consumer*s Goods Other Than Apparel).
Mechanical supports for industrial and commercial lighting equipment sold with wiring and lamp socket's, but without bulbs or reflectors, are "commercial lighting equipment" subject to the Regulation, Appendix A.
When such supports are parts of complete items manufactured and sold by the same company, but sold without sockets or wiring, they are subassemblies of "commeroial lighting equipment" subject to the Regulation, Appendix A.
Arc lamps and glass reflectors for arc lamps designed and sold for use as motion picture photographic equipment are not subject to the Regulation (Section 1S90.34, Appendix C)j they are covered at the manufacturing level by Regulation No. 188 (Manufacturers* Maximum Prices for Specified Building Materials and Consumers* Goods otter than Apparel), and at other distribution levels by the General Maximum Price Regulation.
Portable lamps used for industrial and marine purposes are covered by the Regulation, Appendix A, while domestic portable lamps for household use are covered by the Canara1 Maximum Prioe Regulation.
Leads and leveling equipment. The Regulation is applicable to leads and leveling equipment.
Special repair parts. The Regulation is applicable to the sale of special repair parts for machine listed in Appendix A or Appendix B.
Parts and assemblies sold unassembled. Parts or subassemblies of an item covered by Appendix A, when manufactured by the manufacturer of the complete item, are covered by the Regulation, even though suoh parts of subassemblies are sold unassembled to another person who uses them to assemble a complete item different from that sold by the manufacturer of the parts and subassemblies.
Telephone calculagraph, a mechanical instrument which mechanically calculates the elapsed time of long distance telephone conversations and prints such elapsed time on a toll ticket together with the time the call started, is subject to the Regulation as "mechanical instruments for measuring, testing, recording, or indicating,** etc., Appendix A(h).
Textile spinning machinery and thread and textile guides, whether made of steel or por-celain-ooabed steel, or synthetic sapphire, are subject to the Regulation as "textile preparatory and finishing machinery and equipment (including accessories designed exclusively for use with suoh machinery)," Appendix A(c).
Tire retreading equipments. The Regulation is applicable to retreading equipment.
tend tools designed for military purposes. Where hand tools originally designed for tbe repair and maintenance of civilian vehicles have not been produced for civilian use since 1937, and are now to be manufactured only for the purpose of supplying tools for the repair and maintenance of military vehicles, suoh hand tools are "especially designed for manufacture, repair, or maintenance of aircraft, military vehicles or otter predominantly military equipment" within the meaning of Appendix B and are covered by the Regulation.
Valves. The specific exemption under the Regulation for "manual valves" includes check valves and flap valves, valves operated by hand wheel, chain, lever, or crank. Valves which would otherwise be considered manual valves, e.g., gate, glove, and angle valves, are not automatic valves merely because they are operated by an electric motor, although the electric motor and remote control devices are covered by the Regulation. Valves
16:20
which are operated or operable by fluid pressure are, however, covered by the Regulation as "valves, automatic."
Manual valves. The exclusion from the Regulation of "manual valves" Appendix C, is applicable irrespective of their use; they are subject to Regulation No. 188 (Manufacturers' Maximum Prices for Specified Building Materials and Consumers' Goods other thah Apparel).
Valves on airplanes. The Regulation is applicable to the sale of automatic valves used for oil hydraulic systems which control landing gears, wing flaps, etc., on airplanes.
Winches are considered "hoists" and are therefore covered by paragraph (d) of Appendix A of the Regulation,
Scales. The Regulation is applicable to weighing scales of all types, including postal scales, balancing scales, and spring scales.
Metal scale beams mounted on a tripod and used for weighing cotton in the field, are subject to the Regulation as "weighing scales, industrial, and platform," Appendix A(h),
Used sucker rods sold for use as oil well equipment are subject to the Regulation, Section 1390.11, entitled Sales of second-hand machines and parts. If sold for concrete reinforcing they are covered by the General Maximum Price Regulation. Neither Schedule No. 49 (Resale of Iron or Steel Products) nor Regulation No. 159 (Fabricated Concrete Reinforcing Bars) is applicable*
Addressograph machines are not subject to Regulation No, 136 as "printing machinery", Appendix A(c), but rather are exempt as "office machines", Appendix C; the General Maximum Price Regulation applies.
Bronze and cast iron welding rods used in connection with gas welding and cutting equip-ment are subject to the Regulation as "gas welding and cutting equipment", Appendix A(h),
Corner air drills are subject to the Regulation as "portable power driven tools", Appendix A(d).
Gasoline pumps used at gasoline service stations, unless hand operated, are subject to the Regulation as "pumps and compressors, except automotive, hand operated and farm pumps". Appendix A(h),
Oil cleaning unit used with Diesel or other types of engines is covered by the Regulation since It is a part of the engine; if made by the manufacturer of the engine on which it is used, the maximum price is established by Appendix A; if made by someone else, Appendix B applies.
Radio parts adapted solely for military and police use. Where a manufacturer formerly made a part for civilian radios and modified the part so that it is now sold and used solely for military and police radios, such part is subject to the Regulation as "radio transmitting and receiving apparatus and parts", Appendix B,
Repair service to oil well pumps is a "machinery service" within the meaning of Section 1390.1(b), Where a supplier performed such service free on March 31, 1942, he may not now charge therefor, Section 1390*9(a)(l),
Electric fenoe controllers. See page 16:28.
"Extra". See page 16:6.
16:21
Machines for processing carbon black are subject to the Regulation as "chemical process machinery". Appendix A(c).
Open tanks and vessels (metal)”, etc* The term "open tanks and vessels”, Appendix A(g), means tanks or vessels in which the internal surfaces are exposed to atmospheric pressure; therefore, open top tanks, as well as enclosed tanks which are vented to atmosphere «nd thus not capable of sustaining pressures higher than atmospheric pressure, are "open tanks • Fuel oil container storage tanks, if incapable of sustaining pressures greater than atmospheric pressure, are "open tanks" or "vessels". Domestic oil storage tanka are always vented to atmosphere and, therefore, are "open tanks"; .however, "domestic fuel oil storage tanks" are specifically excepted by the Regulation and are covered by Schedule No. 96 (Domestic Fuel Oil Storage Tanka)t
The Regulation applies to tanks which are factory fabricated and assembled; any tank which is assembled in the field, even though partially fabricated in a factory, is covered by Order No. 61 of the General Maximum Price Regulation*
Air craft testing machine. A manufacturer makes a gear box with an outside power abaft and purchases a small electric motor which is attached to the gear box. The machine is sold as a complete unit to aircraft companies and is specially designed for moving wing flaps, raising and lowering landing gears, opening and shutting the bomb bays, and testing superchargers. When sold as a complete unit this item is not covered by Regulation No. 136 or any other price Regulation; it is specifically excepted from the General Maximum Prioe Regulation by Revised Supplementary Regulation No. 1*
ft*a»es upon which velvet is wrapped for shipping are not covered by the Regulation. They are not "textile preparatory and finishing machinery and equipment (including accessories designed exclusively for use with such machinery)", Appendix A(b), since they are not used in industrial manufacturing operations. They are designed primarily for use in shipping finished goods and are subject to the General Maximum Price Regulation*
Transfer of security interest in machinery - locomotives, A bank purchased three locomotives from the manufacturer and transferred them to a railroad under a lease-with-option-to-buy. The bank's interest in the locomotives was transferred to a Federal agency. This transfer was not subject to Regulation No. 136, since it was not a sale or delivery of the locomotives but only a transfer of the bank's security interest in the locomotives coupled with its rights under the lease.
Services - rubber dipping service on electronic devices. A rubber dipping service performed on electronic devices is covered by ths Regulation since it is a service performed on a commodity listed in Appendix A.
scaffolding. The Regulation applies to the rental of steel scaffolding equipped with hoists since "hoists" are listed in Appendix A(d).
"Trackless trolleys." Rubber-tired electric busses with overhead trolleys are subject to the Regulation as "passenger cars" under the heading of "Railroad Equipment" in Appendix A(f).
Used shafting. The sale of used line shaft with attachments to be used for industrial power transmission is subject to Regulation No. 136; Regulation No. 310 (Reusable Structural Steel Shapes and Plates, and Shafting) applies to the sale of a used 1 Ine shaft, if reusable, and if stripped of all attachments.
Airplane pumps. Airplane fuel pumps and hydraulically operated pumps for operating de-icers, bomE bays, landing gear, and other aircraft mechanisms are subject to the Regulation as "pumps and compressors", Appendix A(h).
Crawler tractor sold by one farmer to another. The sale of a crawler tractor by one farmer to another is subject to the Regulation. Such a sale is not a sale "at retail", exempt pursuant to Section 1390.2(f), because a farmer is a commercial user. A fanner is considered a commercial user since he operates his farm as a commercial activity
16:22
Lease of entire business. The lease of a machine shop, including real estate space, power supply, light, heat, janitor service,*use of rail siding and use of machine tools and machines, is not covered by the Regulation if the transaction actually involves a bona fide lease of an entire business.
Emergency purchase. In order that a sale or delivery to a governmental agency be exempted as a "sale or delivery pursuant to any emergency purchase" the sale must be made "for immediate delivery", Section 1390.23. A contract entered into in September 1943, stipulating for periodic deliveries begin in April 1944, and to end in December 1944, was held not to be an emergency purchase "for immediate delivery" within the meaning of the Regulation*
Repair of oil well survey instruments. Oil well survey instruments are "oil well equipment" within the meaning of Section 1390.32, Appendix A, and therefore repairs of such instruments constitute machinery services covered by the Regulation.
Battery separators with grooves on one side and which can be used only for batteries are considered parts for batteries, and therefore are covered by the Regulation. Where the battery separators are made in whole or in part of rubber, Regulation No. 149 (Mechanical Rubber Goods) applies.
Cloth-cutting machines are classified as textile machines and therefore are covered by the Regulation, Section 1390.32, Appendix A.
Electrical equipment sold and installed on ships. The sale and installation on ships of electrical equipment such as speaker systems, lighting fixtures, instrument panels, wiring for gun mounts by a manufacturer are covered by the Regulation.
"Integral" and "combination" trucks. See page 16:1.
Lens tempering unit, used for tempering lenses so that they may resist breakage, is covered by Section 1390.3$, Appendix B, as an optical processing machine.
Machine gun parts for civilian purposes are classified as "material handling equipment", Sec-tion 1390.32, Appendix A, and therefore are covered by the Regulation when sold at the manufacturer’s or wholesale level. When sold at the retail level, the General Maximum Prioe Regulation applies.
Parts used interchangeably in industrial and farm machines. Engine and tractor parts which may ha use4 interchangeably in industrial and farm tractors are covered by the Regulation; Regulation No. 246 (Manufacturers’ and Wholesale Prices for Farm Equipment) is not applicable since that Regulation only applies to equipment which is used primarily in connection with the production of agricultural products.
•Patcher. A patcher which meets the definition of "industrial sewing machines" under Regulation No. 375 (Sales of Used Industrial Sewing Machines and Rental Rates for New and Used Industrial Sewing Machines) but cannot be priced under that Regulation because it is assembled from parts of old standard sewing, machines, must.be priced under Sections 1390.5 or 1390.7 of Regulation No. 136.
Screws which are part of textile machines. Screws manufactured by a person who does not manufacture the textile machinery in which- they are used, are not covered by Section 1390.32, Appendix A of the Regulation, unless the screws can be classified as "accessories" designed exclusively for use with textile machinery. A screw used for fastening together the basic machine is not such accessory, whereas a screw used with a bobbin, for example, is considered to be an accessory.
A screw which is not an accessory is covered by Section 1390.33, Appendix B as a "screw machine product", if it is made complete or in its first operation on an automatic or bend screw machine from rod, bar or tube stock, and is sold unassembled, provided that the screw is not covered by Regulation No. 147 (Bolts, Nuts, Screws and Rivets).
16:22(a)
and purchases the equipment for use in carrying on that activity.
Note: "Crawler and nonagrioultural tractors" are subject to Regulation No. 136, while retail sales of "Farm tractors (except crawler tractors)" are subject to Regulation No. 133 (Retail Prices for Farm Equipment).
Experimental pumps. A manufacturer at the request of a customer designs an experimental aircraft pump which is invoiced to the customer at a nominal price* If the customer finds, after inspection and testing, that the pump is satisfactory, he orders a large quantity of the pumps and pays a price representing their actual value. The delivery of the test pump does not constitute a sale or delivery under the Regulation so if the manufacturer receives a quantity order for the pumps and prices them in accordance with Section 1390*7, at a price in excess of the nominal prioe for the test pump, no report need be made under Section 1390.18(g).
Jacks. The sale of power-operated jacks is covered by Regulation No. 136 and that of hand-operated jacks by Regulation No. 188 (Manufacturers' Maximum Prices for Specified Building Materials and Consumers Goods Other Than Apparel)* Maximum prices for rentals of hydraulic jacks which are listed in Appendix A, Section 1399.159, Regulation No. 134 (Construction and Road Maintenance Equipment Rental Prices and Charges for Operating and Maintenance or Repair and Rebuilding Services) are covered by that Regulation*
Non-standard item. Section 1390.5, setting forth the maximum price for machines or parts for which the manufacturer had published price lists or established prices in effect on the base date applies to non-standard as well as standard items*
Outdoor and indoor sub-stations. The term "outdoor and indoor substations" in Appendix A of the Regulation refers only to portable substations enclosed in metal cages. Therefore, a sale of a portable electrical substation located in an establishment without the good will of the business is covered by the Regulation as a sale of "machines and parts." However, permanent substations, which are in the nature of fixtures to real property are not covered by the Regulation.
Power operated churns. See page 16:10.
Rebuilt motors are "machines and parts" within the meaning of the "Regulation. The applicable base date governing sales of rebuilt motors is March 31, 1942, Appendix B, Section 1390.33.
Tanks. A field erected tank, equipped with heating coils, baffles, etc., that produces physical or chemical changes in the product it stores, is covered by the Regulation as "Chemical process machinery"; it is not considered to be a tank for pricing purposes*
Prioe Determination
New contracts - production experience. In determining the maximum price for new con-bracts, Section 1390.18(f), the manufacturer's production experience up to the date of determining the new contract price must be used since subparagraph Section 1390.7(b) (2) specifically states: "The permitted labor cost ... is to be determined by applying to each classification of labor estimated to be required on the basis of previous production experience."
Machines formerly sold under special contract. Where a company manufactured lubricating machines never before manufactured, under a special contract for one purchaser only, and delivered the machines to such purchaser on the base date, October 1941, its maximum price for lubricating machines sold under a new contract with the same purchaser is determined by Section 1390*7, sales by the manufacturer without list prioes*
Sale pursuant to rental contract* See page 16:15.
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Royalty payments may be added to the base date prioe of machine and parts if such payments would have been added under similar circumstances on October 1, 1941, and provided no provision is made in the seller's overhead for these payments*
Prioe increases - "previous sale or delivery.*1 In reporting price increases, Section 1390.18(g), "previous sale or delivery" refers to the last sale or delivery of the same machine which took place: (a) after July 22, 1942 (effective date of the amended Regulation) at a price computed under Section 1390.7, and (b) preceded the quotation or use of the increased price.
"Labor rates in effect on October 1, 1942." Where a manufacturer agreed with a union on September 25, 1941, that any wage scale agreement would be effective from that date and, after negotiating for three months, executed a contract with the union providing that the schedule of wages agreed upon should be in force for work done beginning September 25* 1941, the new wage schedule represents the manufacturer's "labor rates in effect on October 1, 1941," for purposes of Section 1390.7(a), if the schedule was the basis on which payment was actually made for work done since September 25, 1941.
Sale of machinery purchased by manufacturer of machines and parts. Where a manufacturer of machines and parts purchased the inventory of another machinery manufacturer, the maximum price for the subsequent sale of these machines is established pursuant to Section 1390.10(d), entitled Machines and parts - new lines; this section is applicable to the sale of the inventory machines even though they areof the same class as those which the purchaser manufactured and sold on or about the base date.
Second-hand machines. The sale of a machine built six years ago, never used except for experimental runs and considered by the manufacturer to be "as good as new for all practical purposes," is subject to Section 1390.11 as the sale of a "second-hand machine•"
Used machine which has not been rebuilt. The fact that no rebuilding has been done on a machine does not necessarily mean that it cannot be sold at 85% of the prioe for the nearest equivalent new machine and invoiced as a machine in which all worn or missing components which should be replaced or repaired for satisfactory operation have been replaced or repaired, provided that no components are missing or need replacing or repair.
Machinery services - "services without list prices." A supplier of machinery service is held to be performing "services without list prices" within the meaning of Section 1390.9(b) in the following situations.
(a) Where a lump sum price given to a customer is based on an estimate of cost prior to performing the service, the estimate including such cost factors, among others, as overhead, profit, and hours of labor necessary.
(b) Where no flat prioe is given to the customer in advance, but charges determined after the services performed, such charges being based on the exact cost factors plus a mark-up for profit.
Additional accessories for welding machine. See page 16:12.
Existence of emergency. The determination of whether an emergency exists within the terms of Section 1390715 (Emergency Service Charges) should be made by the purchaser and the seller of the machine or part, or machinery service since such determination must depend upon the circumstances surrounding each situation as it arises, and the purchaser and the seller are in the best position to make this determination. Such decisions are* of course, subject to review by the OPA.
Acquisition by manufacturer of machines and parts of a machine shop rendering machinery services. A manufacturer of machines and parts acquired an entire machine shop which was engaged in rendering machinery services in the same competitive area as the manufacturer The manufacturer moved the machines to his plant for his general use and engaged in the performance of machinery services for the first time, including service to some of the
16:24
shop's former customers• The manufacturer's maximum prices for machinery services are those of the transferor, pursuant to Section 1390.28 entitled. Transfer of business stock in trade. A manufacturer who sells his products operates a different type of establishment than one who sells machinery services. Hence, as used in Section 1390,28, "establishment" refers to the type of business being transferred, and sinoe the manufacturer of machines and parts maintained a different type of establishment -than a shop rendering machinery services, the manufacturer has acquired an "establishment separate from any establishment which he may previously have owned or operated."
Firm-price contracts - new list prices. A manufacturer entered into a firm-price oon-tract for the sale of a product covered by the Regulation at a price properly computed under Section 1390.7. During the pendency of the contract the manufacturer filed a report under Section 1390.13 and received approval of a new list price for the same product which is lower than the contract price. The manufacturer need not adjust his contract price on the balance of his deliveries under the contract to the level of his new list price, Section 1390.18(b). A contract price, properly computed under Section 1390.7, need be recomputed only where the manufacturer's estimates of the prices of mwh«rials or services are found to exceed the supplier's actual prices therefor under Section 1390.7(c)(4)(ii). Conversely, where the manufacturer's contract price was lower than the approved list price under Section 1390.13, the Regulation does not relieve him of his contract obligation to complete contract deliveries at the lower price.
Oil cleaning unit. See page 16:21.
Machines without list or established prices - dealers - freight charges. In computing maximum prices of machines and parts without list or established prices, Section 1390.10 (c), a dealer may include freight charges actually paid by him from the manufacturer's plant to the dealer's warehouse as part of his "net invoiced cost"..
Rental of components of rock crushing plant. See page 16:13.
Reduction or waiver of 60-day guarantee. Where second-hand machinery is sold at the maximum price of the nearest equivalent new machine, the 60-day guarantee of satisfactory performance, Section 1390.11(a)(2), may not be reduced to 20 days where the purchaser operates the machinery 24 hours per day; nor may it be waived because of the difficulty of servicing the machinery during the 60-day period of the guarantee in the case of sales to purchasers outside the United States.
New or converted plant. Where a tractor distributor built a new addition to its plant which is a separate building on a separate piece of property, the new building is a "newly constructed plant" for purposes of Section 1390.9(c).
Rebuilt and guaranteed machine - adequacy of method of invoicing. A provision in a sales contract that the "above machinery is guaranteed free from extra worn parts or cracks to impair the operation of machinery " does not meet the requirement of the Regulation that the machine be "expressly invoiced as a rebuilt and guaranteed machine", see Section 1390.11(b).
Adding pattern charges to maximum prices. See page 13:25.
Increase in labor costs. Section 1390.7 provides a formula for determining the maximum price of a machine or part for which the manufacturer had no published list price or established price in effect on the base date. Where the cost of a commodity for whioh a maximum price is determined under this section is increased due to labor inefficiency, the manufacturer may increase his maximum price of the particular commodity to reflect the increased labor cost since a change in efficiency of labor will necessarily affect his estimate of labor hours. The increased price for the commodity must be reported pursuant to Section 1390.18(g).
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Discounts - sale through agent. Under Seotion 1390.20, a seller nay not change his customary discounts or price differentials among his classes of purchasers. Where a manufacturer who formerly sold the machines direct to the customer, now sell through a sales agent who does not take title to the machinery, the sales agent is bound by the customary discounts of the manufacturer.
Sales by commission agent. An agent selling machines for a manufacturer on a commission basis without taking title to the machines is bound by the maximum prices of his principal, the manufacturer; he does not determine his maximum prices as a "seller other than the manufacturer" under Seotion 1390*10. Also, since the agent is not selling on his own behalf, but on behalf of his principal, he need not report list prices under Section 1390*5.
Direct labor cost - overtime rates* During the base period a manufacturer operated an automotive engine division and an "aircraft engine division in a single plant* The overtime expenses in the automotive engine divis ion lore not substantial, and therefore the manufacturer did not consider them in establishing his factory overhead rates for the purpose of establishing selling prices for automotive engines*
However, the overtime expenses in the aircraft division were substantial and were considered as a factor in determining factory overhead rates for purposes of establishing selling prices of the aircraft engines. May the manufacturer receive a markup on his overtime expense in the automotive engine division, which are at present substantial, in computing the maximum prices of the automotive engines under Seotion 1390.7.
Since Section 1390.7(b)(3) provides that in the computation of maximum prices the manufacturer may not receive a mark-up on overtime expense, except to the extent that this was reflected in his overhead or machine hour rate during the base period, the manufacturer may not receive a mark-up on overtime expenses incurred in the automotive engine division in computing the maximum prices for the engines manufactured in that division*
Taxes
Federal transportation tax. Under Supplementary Order No. 31—Tax on Transportation of Property Imposed by Revenue Act of 1942, the 3% tax on freight bills is treated by ORA as an increase in freight* Where a manufacturer’s maximum price is f.o.b. factory, with a specified allowance for freight of 50 cents per cwt., he is not required to increase the amount of suoh allowance by reason of the fact that the transportation costs have been increased by the amount of the Federal transportation tax, effective December 1, 1942.
Classification
Appendix B "perishable (expendable) tools*" Tools that wear or are consumed in the process of production and require regrinding or sharpening including devices used on machines to remove material by cutting or abrading, or for shaping and forming such materials, are "perishable (expendable) tools," including the following:
(a) Cutting tools of carbon steel, high speed steel, and cemented carbide (carboloy), stellite and other tipped tools, including diamond tipped tools.
(b) Lathe, planer and shaper tools for turning, cut-off, boring and counterboring, facing, and planing.
(o) Milling cutters hobs, broaches^ twist drills, deep hole drills, reamers,eto*
Oil well beans. Automatic and manual oil well beans (valve devices used in conjunction with an oil well Christmas tree to control the flow and measure the pressure of oil) are complete items of "oil well equipment" covered by Appendix A.
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"Industrial boilers." See page 16:17.
Violations and Evasions
Refusal to sell to distributors. A manufacturer of machines and parts who sold machinery to ultimate purchaser on the base date or had an established price differential between distributors and ultimate purchasers, may refuse to sell to distributors and sell only to ultimate purchasers. However, if the manufacturer had only one price for all purchasers, that price is his maximum price for all purchasers.
Second-hand machines - repairs. Buyer of second-hand crane "as is" wants the boiler re-paired. The seller is engaged to do the repair work before delivering the crane to the buyer. The resulting total compensation is less than rebuilt and guaranteed price but more than the "as is" price. This procedure is a violation of the Regulation. If seller performs repair work before delivering machine to buyer, total price cannot exceed either the "as is" or "rebuilt and guaranteed" price, depending on condition of machine. If the machine has actually been delivered to buyer, seller can then be engaged to do repair work and paid for his services without regard to the charges for the machine, provided that the engagement of the services was not agreed upon by the parties prior to delivery. This means that in order for the seller to be able to sell the service of repair independently of the sale of the machine, the buyer of the machine must when buying the machine, have been completely free to engage a person other than the seller of the machine to do the repair work. Even where machine is first delivered to buyer before repair work is done, if end result is that the seller received compensation totaling more than the rebuilt and guaranteed price, a strong presumption of evasion exists.
Rebuilt and guaranteed second-hand machines - necessity for tearing down and rebuilding. While Section 1390.11(b) contains no specific requirement that a machine which has been in use for five years or more must be torn down and rebuilt to qualify as a "rebuilt and guaranteed" machine, if such a machine has not actually been put through this reconditioning process there is a strong presumption of a violation if it is sold as "rebuilt and guaranteed", since the machine is likely to have worn or missing parts which must be repaired or replaced for satisfactory operation.
Guarantee of satisfactory operation. Used machines were sold to the Lend Lease Administration for shipment to India at the maximum price for rebuilt and guaranteed machines and invoiced as such pursuant to Section 1360.11(a)(2). It is not an evasion or violation of the Regulation to charge the maximum price for the machines as rebuilt and guaranteed where defective operation of the machine is due to improper installation or damage while in transit.
Recapture clause - taxes and repairs during rental period. See page 16:14(a).
Definitions
"Material handling equipment, industrial (cars, trucks, racks, etc.)." The materialhandling equipment covered by "this item is equipment used for the movement of goods from place to place. Hence, "racks" which are fixtures are not covered.
"Extra". See page 16:6.
"Open tanks and vessels (metals)", etc. See page 16:22.
Screw machine product. Screw machine products include all items made complete or in their first operation on automatic or hand screw machines from rod, bar, or tube stock when sold unassembled, but excluding items made on screw machines which are subject to Maximum Price Regulation No. 147 (Bolts,, Nuts, Screw, and Rivets).
"Portable heating, melting, burning and thawing equipment", etc. This term, as used in Appendix A(h), means burners, Gorges, furnaces, heaters, kettles, melting pots and
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torches used for industrial or transportation purposes, which are not designed to be set on, or fastened to a permanent base or foundation, but which are capable of being easily-carried or moved from one location to another, and use gasoline, kerosene, fuel oil# illuminating gas, coal, coke, charcoal or wood as fuel to generate heat for the purpose of heating, melting, burning or thawing materials of any kind. Oxy-acetylene and electrically operated equipment is not included, and mechanic’s fir« pots and blow torches are specifically excluded.
Maximum Price Regulation No. 246
MANUFACTURERS’ AND WHOLESALE PRICES FOR FARM EQUIPMENT
Applicability
Electric fence controllers. Electric fence controllers sold by manufacturers or whole-salers are subject to Regulation No. 246 since practically all of these controllers are manufactured and marketed for farm use. Sales at retail are subject to Regulation No. 133 (Retail Prices for Farm Equipment). Regulation No. 136 (Machines and Parts, and Machinery Services) is not applicable.
Saddles, harness, etc. Sales by manufacturers of saddles, saddle trees, stirrups, harness, chinchas and cowboy boots are not subject to Regulation No. 246; the General Maximum Price Regulation applies. The sale at retail of harness and saddlery is subject to Regulation No. 133 (Retail Prices for Farm Equipment).
Parts used interchangeably in industrial and farm machines. See page 16:22(a).
Galvanized pipe. See page 16:10.
Hatchery equipment. See page 16:9.
Price Determination
Manufacturer’s increased freight costs. In March 1942, a farm equipment manufacturer charged rebai! dealers in area A ¿reight from transfer point A which he has since discontinued, and now proposes to charge a higher freight from transfer point B. The increased freight costs may not be added to the maximum price under Regulation No. 246. Therefore, the retail dealers may not increase their maximum prices under Regulation No. 133 (Retail Prices for Farm Equipment) since their freight costs have not changed.
Maximum Price Regulation No. 341
MAXIMUM PRICES FOR USED COMMERCIAL MOTOR VEHICLES
Appiicab ility
"Integral” and "combination" trucks. See page 16:1.
Converted passenger automobile. The Regulation applies to the sale of a used passenger automobile converted to a commercial motor vehicle.
Classification
New and used trailers. A "reassembled trailer" was manufactured from 70% used material and 30% new malarial. The question arises whether the trailer is a "used" motor vehicle subject to Regulation No. 341, or a new vehicle, subject to the General Maximum Price Regulation. In order to qualify as a new trailer, the vehicle must have undergone a manufacturing operation, rather than a repair or reconditioning operation of a used unit, and
16:28
such operation must have been performed by a manufacturer of new trailers, i.e., one who is engaged customarily in the business of manufacturing, has catalogue or list prices, and has a manufacturing establishment.
Definition
New body. A "new bo^y", as that term is used in the Regulation, means one that has never been used before for any purpose.
Maximum Price Regulation No. 375
____ SALES OF USED INDUSTRIAL SEWING MACHINES AND
RENTAL RATES FOR NEW AND USED INDUSTRIAL SEWING MACHINES
Applicability
Sale by municipality at public auction. The sale of used industrial sewing machine« by a municipality ab public auction is covered by the Regulation.
Patcher. See page 16:22(a).
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NON-FERROUS METALS
Price Schedule No. 2
ALUMINUM SCRAP AND SECONDARY ALUMINUM INGOT
Applicability
Aluminum oxide is not covered by the Schedule.
Aluminum sulphate is not covered by the Schedule.
Price Determination
Transportation charges. See page 17:6.
Premiums
Quality premium. A premium for the sale of briquetted aluminum turnings may not be charged by a seller.
Taxes
Secondary aluminum ingot - delivery charges. Under Supplementary Order No. 31 - Tax on Transportation of Properly imposed by Revenue Act of 1942, the 3% tax on freight bills is treated by OPA as an increase in freight. Therefore, the "lowest carload rate of rail freight" is the carload rate plus the 3% tax on the amount of the carload rate. The resulting amount must be allowed by the seller to the extent of 75/ per hundredweight. In the case of less than carload shipments, the amount of the freight allowance is calculated in the same way.
Classification
Scrap aluminum pattern forms are classified as "old castings and forgings".
"Old castings and forgings". Large pieces of obsolete 27-S aluminum scrap, obtained in the dismantling of a bridge, are classified as "old castings and forgings".
Violations and Evasions
Sale of ingots in conjunction with purchase of scrap. Where aluminum ingots are sold at the maximum price, and pursuant to a WRD requirement, tbe sale is made in conjunction with the purchase of the scrap, the seller of the ingot may not insist upon a lower price than is ordinarily paid for the scrap, since the ingot seller would, in effect, receive a higher price for the aluminum ingot than that established by the Schedule. The Schedule expressly prohibits such evasion, see Section 1302.6.
Maximum Price Regulation No. 3
ZINC SCRAP MATERIALS AND SECONDARY SLAB ZINC
Applicability
General. The Regulation is applicable to the seller and the buyer who is a consumer of zinc scrap materials of the kinds and grades set forth in Appendix A of the Regulation, and is ap-
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plicable to the seller and the buyer of secondary slab zinc.
Die cast borings and die cast dross slab are not subject to the Regulation.
Zinc tax tokens are subject to the Regulation as "old zinc scrap".
Secondary electrolytic zinc is subject to the Regulation as "intermediate and higher grade" of secondary slab zinc.
Thread protectors. The Regulation is not applicable to the sale of "thread protectors" made from an alloy containing 95% zinc and 5% copper, since such material is not one of the forms of scrap subject to the Regulation.
Zinc, die cast shavings are exempt from price control.
Price Determination
Freight charges prior to reaching point of shipment. Since the maximum prices established by bhe Regulation for zinc scrap are f.o.b. point of shipment, a seller, on shipping zinc scrap from his plant to a refinery, may not add to the maximum price the freight charges he incurred before the material reached his plant.
Freight charges to local railhead. Transportation charges from the seller’s plant to the Tocar'railhea'd may nob be added by the seller to the maximum price of the Regulation. However, if the seller loads the scrap at his plant on a common carrier for continuous transportation to the buyer on a through rate which includes no specific charge for the cartage or the trans-shipment, then the buyer may pay the entire freight from the seller’s plant.
Transportation charges. See page 17:6.
Definitions
Truck charges - zinc and lead scrap. Truck charges means charges on the gross weight of the shipment within bhe meaning of Regulation No. 3, Section 1303.15, and Schedule No. 70, Section 1355.70.
Price Schedule No. 8
PURE NICKEL SCRAP, MONEL METAL SCRAP, STAINLESS STEEL SCRAP, NICKEL STEEL SCRAP, AND OTHER SCRAP MATERIALS CONTAINING NICKEL: SECONDARY MONEL INGOT, SECONDARY MONEL SHOT, AND SECONDARY COPPER-NICKEL SHOT
Applicability
Electrolytic nickel plates that are scrap material are covered by the Schedule.
Electrolytic nickel plates that are not scrap material are not covered by the Schedule.
Nickel anodes made from nickel residues and nickel scrap are not covered by the Schedule.
Secondary nickel chrome ingots are not covered by the Schedule.
Nickel steel scrap and ferro-nickel-iron scrap. All nickel steel scrap and ferro—nickel-iron scrap containing over 6.25% nickel are covered by Schedule No. 8. The maximum price of ferro-nickel-iron scrap containing 14% and up to 90% nickel and no chrome is specifically set forth under Section 1308.10(a) of Schedule No. 8, and the maximum price of ferro-niokel-iron scrap containing less than 14% nickel but more than 5.25% is determined by applying the normal differential below the established maximum price, as provided by Section 1308.10. Nickel steel scrap containing 5.25% nickel or less is covered by Schedule No. 4 (Iron and Steel Scrap).
800780 0 - 44 - 19
17:2
Price Determination
Nickel steel scrap and ferro-nickel-iron scrap. See page 17:2.
Transportation charges. See page 17:6.
Premiums
Computation of premium. The premium for ferro-nickel-chrome-iron scrap is applicable to all of the ferro-nickel-ohrome-iron scrap in shipments of 10,000 pounds or more of suoh material, and not to the nickel content alone.
Converter’s premium - reasonable chemical analysis. To receive a converter*s premium the converter must sort, grade, and otherwise prepare scrap for direct industrial consumption, on the basis of a reasonable chemical analysis, made of a reasonable sample of each sale and shipment of material, and the material must ultimately turn out to be fit for direct industrial consumption. In making a reasonable chemical analysis, it is not necessary to maintain a laboratory or employ an accredited chemist, but it is clear that a single application of nitric acid to one clipping in a carload does not constitute a reasonable chemical analysis.
Premium for mixed lots. The schedule permits quantity premiums for stated quantities of different kinds of nickel-bearing scrap. A shipment composed of different grades of the same kind of scrap, as classified in paragraph (a) of Appendix A, is eligible for the quantity premium. For example, a shipment of two lots of ferro-nickel-iron scrap, one of 8,000 pounds containing 30% nickel* the other 6,000 pounds containing 40% nickel, would be eligible for the quantity premium allowed on 10,000 pounds of ferro-nickel-iron sorap. The quantity premium may not be obtained, however, by combining lots of different kinds of nickel-sorap to total the quantity required for the premium. Thus, 6,000 pounds of ferro-nickel-iron scrap could not be added to 15,000 pounds of monel metal scrap, to obtain the premium available on 20,000 pounds of monel or 10,000 pounds of ferro-nickel-iron.
Brokerage fee. To qualify for a brokerage fee, Section 1308.10(b), the broker must have purchased the scrap for the consumer's account after he was employed for such purpose by the consumer; otherwise the broker could not comply with the requirement that the brokerage fee may not be split with, or paid to the seller of the material.
Price Schedule No. 12
BRASS MILL SCRAP
Applicability
Cuttings from copper bronze screen wire are not brass mill scrap and are not covered by the Schedule; Maximum Price Regulation No. 20 (Copper Scrap and Copper Alloy Sorap) applies.
"Clean fired rifle shells." See page 17:6.
Brass rifle shells discarded in the process of manufacture because of defects, and which never contained a primer cap, are brass mill scrap.
Mouth trim from cartridge cases. Sorap resulting from final mouth trimming of cartridge oases is classified as "turnings" and not as "heavy scrap".
Price Determination
Yellow brass containing 2% to 3% lead. No specific price is established for yellow brass containing 2% to 3% lead, and hence the maximum price is determined pursuant to the normal differential clause of the Schedule, Section 1309.19(b)(1). During the period July 22, 1941 to February 11, 1942, leaded brass generally sold at the sane price as heavy yellow brass and
17:3
hence the maximum price of leaded brass, as determined under the normal differential clause of the Schedule, is the same as the maximum price for "yellow brass-heavy scrap", i.e., 8-5/8 cents per pound f.o.b. point of shipment.
Services to seller. Maximum prices are fixed on an f.o.b. shipping point basis, and if the buyer has to pick up and load the scrap, or if the buyer furnishes containers or other valuable services, the maximum prices which he may pay for the scrap should be reduced by an amount equivalent to the value of the services rendered.
Freight charges - imported scrap. On imported brass mill scrap, freight may be added only from that freight stabion in the United States on the direct line of shipment which is nearest to the border.
Transportation charges. See page 17:6.
Premiums
Unlisted items. Any kind or kinds of scrap materials meeting the definition of brass mill scrap, even though such material is not specifically listed in Appendix A of the Schedule, may be considered to make up an amount entitled to a quantity premium; but old pipe and similar grades which are suitable for brass mill consumption, but which are not brass mill scrap, may not be so included.
Shipment "at one time". The Schedule provides for a premium on shipments in lots of 15,000 and 40,O0O pounds or~more "at one time". When part of a shipment is rejected by the buyer, a premium cannot be charged if the total weight accepted is less than that entitled to a premium. If delivery is made by other than a public carrier or the buyer’s conveyance, a shipment is by the terms of the Schedule considered to have been made "at one time", if the entire lot is delivered to the buyer within three days after the first portion of the lot is so delivered. This three-day deadline applies, even where part of a shipment was rejected by the buyer and a replacing shipment was made within a reasonable time after rejection, but more than three days after delivery of the first portion of the lot.
Pooled lots. Several dealers may pool lots to make up a shipment entitled to receive a quantity premium, provided that the purchasing brass mill is required to negotiate with only one of bhe participating dealers, and that the material furnished meets the .quality requirements of the Schedule. One dealer may not, however, purchase from another dealer»at a price in excess of the maximum price, in order to make up a shipment large enough to be entitled to receive a quantity premium.
Briquetting. No premium for briquetting any kind or grade of brass mill scrap is permitted if payment of such premium would raise the botal amount paid for material of such kind or grade above the maximum prices, however, see Section 1309.19(e)(3) for price of briquetted cartridge turnings.
Scrap in "cabbaged" form. No premium in addition to the maximum price may be charged for scrap in "cabbaged” form.
Hydraulically baled brass clips. A premium may not be charged for Hydraulically baled brass clips, since no provision is made in the Schedule for briquetting premiums. However, see Section 1309.19(b)(3) for price of briquetted cartridge brass turnings.
Quantity premiums - mixed shipment of brass mill scrap and copper alloy scrap. A car of scrap contained 60,000 pounds of4 brass mill scrap (rod turnings) subject to Schedule No. 12, and 30,000 pounds of copper alloy scrap (refinery brass) subject to Regulation No. 20 (Copper and Copper Alloy Scrap). Pursuant to Schedule No. 12, Appendix A(c), entitled Quantity premium, the seller is entitled to a premium of 1 cent per pound on the brass mill scrap, since the shipment contained in excess of 40,000 pound. However, a quantity premium may not be paid on the copper alloy scrap, since the shipment contained less than the minimum quantity (40,000 pounds) required for a premium under Regulation No. 20. Copper alloy scrap is not brass mill scrap, and therefore, its weight may not be considered in deciding whether a shipment is eligible for the quantity premiums provided for in Regulation No. 20.
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Violations and Evasions
Services rendered by ths buyer. A buyer of scrap may not furnish any valuable service, or labor, or materials to the seller in addition to the maximum prices permitted by the Schedule unless properly paid therefor; the furnishing of such service constitutes additional consideration. Thus, if the buyer supplies containers to the fabricator, or supplies the use of containers, or if the buyer furnishes labor for handling, loading or packaging the scrap, or cleaning up the fabricator's premises, the seller should either make proper payment to the dealer for these services, or sell his scrap to the dealer at a price below the maximum price by an amount representing the value of the service.
Charging off claims against sellers. A purchaser of brass mill scrap has an arrangement whereby the seller of the scrap draws a" draft on the purchaser against the shipment of the metals. Where the amount of the draft was in excess of the amount due the seller, the purchaser nevertheless, has paid such draft upon presentation, and charged the seller's open account. Following his customary procedure the purchaser proposes to charge off certain of these claims at the close of his fiscal year. It is not a violation of the Schedule for the purchaser to charge off these claims against the seller of the scrap, provided that they are bona fide charge-offs, i.e., uncollectible bad debts.
Price Schedule No. 15
COPPER
Applicability
General. The schedule establishes maximum prices for all sellers and purchasers of any kind or grade of copper which is refined and in a form suitable for fabrication.
Brass mill products. The Schedule applies to copper metal produced by a refiner or other pro-ducer which is in a form suitable for fabrication. The Schedule is not applicable to copper sheet, rod, tube, or other copper articles produced by rolling, drawing, extruding, melting, or other fabrication of such copper, generally referred to as "brass mill products".
New sheet copper is not covered by the Schedule.
Price Determination
Delivered and f.o.b. prices. The maximum prices for casting copper are f.o.b. shipping point, regardless of amount shipped. The maximum price for copper other than casting copper, in less than carloads, is f.o.b. refinery. The maximum prices for copper, other than casting copper, in carload shipments, is a delivered price at Connecticut Valley points, with a delivery differential for delivery at any point other than a Connecticut Valley point. The delivery differential is that which, on August 11, 1941, would customarily have been added to or subtracted from the base price.
Commissions
Cash discounts. A seller who has customarily granted discounts for cash may discontinue this practice, provided that the price, together with the commission, is not in excess of the maximum price. The provision in the Schedule for differentials for copper of "any kind or grade, or in any other shape or form", refers only to shape and grade differentials and does not refer to cash discounts. The provision that the maximum prices "are gross prices before the deduction of any discounts and include all commissions" does not require continuance of the cash discount.
Dealer's commission or markup. Only one dealer's premium or markup may be added to the maximum price. Where more than one dealer handles the copper the premium may be split in such manner as is agreed upon by the dealers.
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Price Schedule No. 17
PIG TIN
Price Determination
General. The Schedule establishes maximum prices in cents per pound, ex dock or store. Port of New York for foreign pig tin, and ex producer’s plant for domestic pig tin.
Differentials for small lot sales. A differential in cents per pound is provided for the sale in lots of less than five gross tons. The differentials vary with the size of the lot sold.
Sales on a GIF basis. Sales may be made on a GIF basis so long as the CIF price is based on a price ex dock or store, Port of New York, which does not exceed the maximum established by the Schedule.
Violations and Evasions
Conversion to solder dross. The Schedule does not prevent conversion of a car of tin and solder dross into solder metal, on toll, for a customer outside of the United States.
Maximum Price Regulation No. 20
COPPER SCRAP AND COPPER SCRAP ALLOY
Applicability
Return of excess scrap materials. Where castings are sold and the seller retains title to any excess material, such as chucking ends, the return of the excess material by the buyer of the castings does not constitute a sale of scrap under the Regulation.
Discarded evaporators. The sale of discarded evaporators on the basis of their copper and brass content is subject to the Regulation, since it is a sale of copper scrap or copper alloy scrap.
Sale of tableware to replaters. The Regulation does not- apply to silver plated copper alloy tableware sold to replaters, since it is sold for reuse and not as scrap.
"Clean fired rifle shells." Clean but defective rifle shells of thirty to fifty caliber, the primer caps of which had been fired by machine and not by regular rifle firing on the range, and 37, 75, 90 and 105 mm. shells made of the same material as the rifle shells, are subject to the Regulation as "clean fired rifle shells"; they are not subject to Prioe Schedule No. 12 (Brass Mill Scrap).
Sales by a dealer to a partnership in which he is a member. An individual is a copper scrap dealer and is also a member of a partnership which is a copper scrap consumer. By virtue of Section 1309.69(a)(2), this individual is a "consumer". His purchase prices are subject to the Regulation and his sales to the partnership are also covered and must be made at or below ceiling prices, since the Regulation does not exempt sales from one consumer to another*
Prioe Determination
Transportation charges. Where delivery is made in a vehicle owned or controlled by the sell-er or by a private carrier not owned or controlled by the consumer, the maximum transportation charges which the consumer may pay is determined by the mileage traversed on a one-way haul from the shipping point to the consumer's receiving point. The allowance for bridge, tunnel, and ferry tolls is also for the one-way haul only. The following schedules and regulations have such provisions:
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No. 2 (Aluminum) Section 1302.14(b)
No. 3 (Zinc) Section 1303.15(b)
No. 8 (Nickel) Section 1308.10(c)
No.12 (Brass Scrap) Section 1309.19(d)
No.20 (Copper Scrap) Section 1309.70(e)
No.70 (Lead Scrap) Section 1355.70(b)
Premiums
Quantity premium - substitution of scrap materials. While there may be a substitution of an item of scrap, in order -to qualify -the shipment for a quantity premium, the substitution must meet the requirements of the Regulation concerning "shipment at one time".
Method. It is not a violation to use a pricing method that differs from that of the Regula-tion, providing the price paid does not exceed the maximum prioe. For instance, it is not a violation of the Regulation where the seller fails to make a required deduction but more than offsets this amount by adding less than the allowable premium so that his price is less than the maximum price. However, in order that the filing of reports by the consumer may be simplified, it is preferable, to determine the price as provided in the Regulation by making the applicable reductions and then adding such quantity premium.
Quantity premiums - mixed shipment of brass mill scrap and copper alloy sorap. See page 17:4.
Classification
Bronze borings analyzing 80-10-10 are classified as "High Lead Bronze Borings".
Asbestos covered copper wire is classified as "refinery brass".
Insulated copper wire. Rubber covered, cotton and silk covered, glass covered, and enameled and varnished copper wire are classified as "Insulated Copper".
"Clean fired rifle shells." See page 17:6.
Definitions
"Scrap." Brass pipe purchased from scrap dealers and building wreckers and cleaned, cut, and threaded is still useful in its existing state for its original purpose, and therefore is not "scrap" as defined in Section 15(3).
Violations and Evasions
Compensation of a referee chemist. The consumer may pay, in addition to the maximum price, all or any part of the compensation of a referee chemist, employed by the consumer and the seller to determine the analysis of a given lot of material, provided the seller does not receive any portion of the chemist’s fee.
Prioe Schedule No. 69
PRIMARY LEAD
Applicability
General. The Schedule is applicable to the sale of all grades of primary lead. The seller and the purchaser are subject to the Schedule. •
Die oast borings and die oast dross are not covered by the Schedule.
Type metal ("lead type") which is not lead but a ternary (lead-tin-antimony) alloy is not covered by the Schedule.
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Price Determination
Carload lots. The maximum prices for carload lots are prices delivered at basing points. The basing points are (1) St. Louis, (2) New York, and (3) other basing points which are listed by cities in the Schedule. If the buyer's rail delivery point is not a listed basing point, the price listed for the nearest point in distance to the point of delivery prevails.
Less than carload lots. The maximum prices for less than carload lots are f.o.b. point of shipment by (1) the producer of the lead sold, and (2) all other persons except plumbing supply houses. The f.o.b. point of shipment is a listed basing point, and if point of shipment is not listed, the prioe listed for the nearest point in distance to the point of shipment prevails. An additional amount per pound may be added to the maximum prioe, varying with the size of the lot sold and whether sold by the producer, or person other than the producer, except plumbing supply house.
Same company both a producer and distributor. A company which buys pig lead for use in the manufacture of ingots, or other special shapes, may charge in the sale of the ingots, or other special shapes made from that particular lead, no more than the maximum prices established for producers. If the same company resells lead without changing its form, it may charge no more than the maximum prices established for distributors. Thus, the same company may have both a producer's and a distributor's maximum price.
Plumbing supply houses. The maximum prices for sales by plumbing supply houses are the dollar-and-cenbs prices established for carload lot sales, plus a percentage markup. The markup may be no higher than the same percentage markup obtained by the supply house on an October 1, 1941 sale of a similar quantity of the same grade of lead, see Section 1355.9(b)(3).
Premiums
Quantity premiums - mixed oarload shipments. If a shipment of pig lead and ingots, which to-gether total a carload quantity, is tne subject of a single sale to a single purchaser, or is shipped in one oar to a single purchaser, the carload maximum prices are applicable. If such a quantity is sold to two different purchasers, the less-than-carload maximum prices are applicable, regardless of whether or not the material is shipped for part of its journey in a single oar as a carload quantity, taking the carload rate which is applicable thereto. In the latter case, the material is not sold in a carload lot, nor is it shipped to the purchaser's destination in a carload lot.
Maximum Prioe Regulation No. 70
LEAD SCRAP MATERIALS; SECONDARY LEAD; BATTERY LEAD SCRAP; AND PRIMARY AND SECONDARY ANTIMONIAL LEAD
Applicability
General. The Regulation is applicable to the sale of the following grades or types of lead scrap:
(a) Lead scrap materials other than battery lead. The Regulation is applicable bo the seller and the purchaser who is a consumer of the following grades or types: soft lead scrap, hard lead scrap, battery lugs, lead content of lead covered copper cable, and cable lead scrap.
(b) Secondary lead as defined means lead of which more than 50% of the lead oon-tent is obtained from scrap material.
(o) Battery lead plates. The Regulation is applicable to the purchase and the
sale by a broker, and the sale to or purchase from brokers.
(d) Battery lead scrap purchased by smelter or battery manufacturers. The Regu-
. lation is applicable to the purchase and the sale by a broker, and the sale
to or purchase from brokers.
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(e) Primary and secondary antimonial lead. The Regulation is applicable to the seller and the purchaser of antimonial lead.
Ludlow and linotype metal which are composed of tin, lead, and antimony are not covered by the Regulation.
Sales of battery lead scrap to dealers. The Regulation is not applicable to the sale of battery lead scrap to scrap dealers, but the sale of such scrap to smelters or battery manufacturers and the sale of battery lead plates to brokers are subject to the Regulation.
Price Determination
General. The Regulation establishes dollar-and-cents maximum prices per pound f.o.b. point of shipment for the following:
(a) Lead scrap materials other than battery lead scrap. The base price is set forth by listed basing points in Appendix F; and differentials are provided for the grade or type of scrap material.
(b) Secondary lead. The base prioe is set forth by listed basing points in Ap-pendlx F, and differentials are provided for sales in:
(1) Carload lots;
(2) less than carload lots;
(i) by the producer of the lead sold, (ii) all other persons, except plumbing supply houses, (Hi) sales by plumbing supply houses.
(c) Battery lead plates purchased and sold by brokers.
(d) Battery lead scrap purchased by smelters or battery manufacturers.
(e) Primary and secondary antimonial lead.
Transportation charges. See page 17:6.
Freight charges. Transportation charges from the seller's plant to the local railhead may nob be added by the seller to the maximum price set forth in the Regulation. However, if the seller loads the scrap at his plant on a common carrier for continuous transportation to the buyer on a through rate, which includes no specific charge for the cartage or the trans-shipment; then the buyer may pay the entire freight from the seller's plant.
"Used storage batteries (in boxes)." The term "used storage batteries (in boxes)" refers bo the complete storage battery, including the structure in which the elements are housed. When the outer housing is a part of the complete battery, and cannot be easily separated from it, the housing will be included in the term in question. This is true regardless of what substance the housing is composed. However, a structure which is a mere tray and serves as a platform .to support the battery, or its parts, and can easily be detached therefrom, is not included within the term "used storage batteries (in boxes)".
Ooumissions
Quality of minimum tonnage. The minimum tonnage for a broker's commission on battery lead plabes may not be made up of soft lead, or hard lead, but must consist only of battery lead plates.
Shipment of battery lead plates from broker's warehouse. Where a broker ships a portion of bhe 3ÔÛ-ton minimum shipment of battery lead plates from his own warehouse, he may not charge a commission on the remaining tonnage which he has shipped from a point, other than his plant, warehouse or yard.
"Delivered within a 30-day period". See page 17:10.
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Violations and Evasions
Refusal to ship in oarload lot. The sale or delivery of antimonial lead in quantities less than requested by the buyer, in order to enable the seller to obtain a higher differential, is a violation of the Regulation, provided the buyer would have been willing to accept delivery in a single shipment. Furthermore, the carload maximum price applies when antimonial lead is sold in carload lots, even though it is shipped in less-than-carload lots.
Definitions
"Delivered within a 30-day period." The clause "delivered within a 30-day period" is com-plied with as bo a broker’s commissions on battery lead plates, where the 300-ton minimum of such scrap is loaded and turned over to a common carrier not under the ownership or control of the broker, and is consigned to a smelter-purchaser within a period of 30 days.
Truck charges - zinc and lead scrap. See page 17x2.
Price Schedule No. 81
PRIMARY SLAB ZINC
Price Determination Taxes
Federal transportation tax- Federal agencies. Under Supplementary Order No. 31 - Tax on Transportation of Property Imposed by Revenue Act of 1942, the 3% tax on freight is treated by OPA as an increase in freight. Under Schedule No. 81, maximum carload prices are determined by adding the carload freight from East St. Louis to the point of delivery, regardless of the actual freight paid. The 3% tax on such freight charges, treated by OPA as an increase in freight rates, may therefore be added. It follows that a Federal agency, for example, Metals Reserve Company, even though exempt from the payment of the 3% tax, may add the amount of such tax to the transportation charges in determining its maximum price.
Classification
Zino dross and zinc skimmings. The Schedule does not require the submission of toll contracts where the substance treated is zinc dross or zinc skimmings, since those materials are not regarded as "primary material" within the meaning of Section 1303.54(b) of the Schedule.
Maximum Price Regulation No. 125
NON-FERROUS CASTINGS
Price Determination
Replacement of defective casting. A company which delivered castings for naval vessels was advised that such castings were defective. The rejected castings were replaced after the Regulation was revised, effective February 1, 1943. The Regulation does not require the company to give effect to the reduction in prices effected by the Regulation as revised, where the defective castings had been sold and delivered to the buyer before February 1, 1943, provided that no charge is made by the seller for the replacement of the defective casting. This interpretation was held to be applicable where the casting must be re-poured, as well as where the defect can be corrected by repairs.
Quantity discount - rate of delivery as test. Where an order is placed for amount entitled to a quantity discount but delivery is made"at a rate which is not entitled to a discount, the determination as to whether the quantity discount should be granted is made by reference
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to the rate of delivery, rather than the size of the order, see Section 1395.3 and 1395.4.
Maximum Price Regulation No. 126
FLUORSPAR
Price Determination
High ccmaercial grade. Ground fluorspar meeting the specifications of 85% CaFg and 5% SiO? and sold for ceramic or glass uses, and ground fluorspar meeting the specifications of 90% to 95% CaFg and 5% SiOg, are ceramic grades of fluorspar, and the maximum price is the highest price which the seller had in effect for those grades on January 2, 1942. Unground fluorspar, meeting the specifications of 85% CaFg and 1% SiOg, is a metallurgical grade of fluorspar and subject to the maximum price for that grade.
Maximum Price Regulation No. 198
IMPORTS OF SILVER BULLION
Applicability
Shipments on an in-transit bond. The shipment of silver through the United States on an in-transit bond is not an import of silver covered by the Regulation. Thus, silver which is sold while still located in Mexico, to buyers in South America, and is thereafter shipped under such a bond through this country for delivery to the buyer abroad, is not covered by the Regulation.
Maximum Brice Regulation No. 258
CHROME ORES
Violations and Evasions
Charge for weighing car before loading. The charge for weighing the car before loading may be added to 'the maximum price where the buyer requests it, since he is buying the ore f.o.b. railroad cars, and the weighing is for his protection; It is a violation of the Regulation to add the charge for such weighing to the maximum price unless the weighing is requested by the buyer.
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PAPER AMD PAPER PRODUCTS
MiccAm— Price Regolaiion Mo. 30
WASTEPAPER
Applicability
General. The Regulation io applicable to the seller and the purchaser in a sale of any kind, grade or type of wastepaper in any quantity. She Regulation io not limited to persona oho grade and peek wastepaper. Salos to a purchaser, who uses the paper for wrapping or packing purposes, are not sales of wastepspor and therefore not subject to the Regulation.
The Regulation corers all kinds, grades and types of wastepaper, not merely those specifically listed in the Regulation. See Section Ijhj.14(c), entitled Maximum prices for unlisted grades of wastepaper.
Isport sales. The Regulation applies to sales of wastepaper purchased from abroaid.
State officials* A State procurement officer may not accept bids for wastepspor in excess of maximum prices*
Uhsorted paper* The Regulation exempts the sale of unsorted wastepspor which contains two or more grades, if the purchaser warrants that ho will not uso such paper as a consumer, but will sort and grade it for resale into grades listed in the Regulation, at prices not exceeding the appropriate maximum prices* If a portion of the unsorted paper is reusable and resold for printing, wrapping or writing purposes, and not as wastepaper, the sale of the reusable paper is not subject to the Regulation* The original purchaser's warrant most bo as prescribed by the amendment with respect to that portion of paper which he resells as wastepaper, and must farther provide that the purchaser will not resell the reusable paper at prices in excess of those provided by the General Maximum Price Regulation.
Salo for rouse as containers. While the sale of cardboard boxes for reuse as containers is not subject to the Regulation* the sale of such boxes to paper mills for the manufacture of paperboard is subject to the Regulation. The seller should require from the purchaser satisfactory assurance that the boxes are to bo need as containers, if they are sold above the maximum price*
Cardboard boxes sold for reuse as containers are not subject to the Regulation. However, if they are sold to bo manufactured into paperboard, then the Regulation is applicable.
Old oorrnff»ted containers sold to mills as raw materials to manufacture new containers are covered by the Regulation.
Old corrugated containers sold for reuse as containers are not covered by the Regulation.
Overissue newspaper which is ground. by the purchaser into a fibre, used as an ingredient in a floor sweeping compound, is covered by the Regulation.
All sales of overissue newspaper solely for use as packing and wrapping materials are exempt from the Regulation. The seller should require from the buyer a written statement setting forth the proposed uso of the paper, if the sale is considered not subject to the Regulation.
However, if only part of the lot of overissue paper sold is for exempt uses, the sale of the entire lot is subject to the Regulation.
Shredded paper for wrapping or packing purposes is not covered by the Regulation.
Waxed pqper used for packing purposes is not subject to the Regulation.
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Mixture». The sale of »sorted wastepaper containing two or more grades is not subject to the Regelation if the purchaser makes certain warranties in writing as specified in the Regulation.
Price Determination
General. The Regulation establishes maximum prices f.o.b. point of shipment. Where sales are made on a delivered, basis the price may not exceed, the maximum f.o.b. price, plus appropriate transportation allowances. Appropriate allowances for transportation is described in the Regulation for delivery by seller's vehicle and by public carrier.
Salea of loss than one ton. The Regulation establishes maximum prices per short ton. The maximum prioe for one-half ton of wastepaper is one-half the maximum price for a short ton of the particular grade.
Premium for special packings. Charges for so-called "special packings* of the grades of waste-paper may not be added to the maximum price.
"Machine compressed bales." A baling press consisting of any mechanical contrivance or apparatus for compressing wastepaper is a Machine, even though it is hand operated. Accordingly, bales of wastepaper produced by such a press are "machine compressed bales" under the Regulation, and the $2.00 deduction per ton for failure to pack in machine compressed bales need not be made.
Commissions. The Regulation provides for a broker's allowance when wastepaper is purchased by a consumer and when the transaction fulfills the specified requirements. Only one broker's allowance may bo paid for each ton purchased. A packer selling a consumer ten tons of wastepaper, two tons of which were packed by himself, and eight tons of which wore packed by others, is entitled to a brokerage allowance on the eight tons, if the transaction with respect to the eight tons conforms with all the requirements of the Regulation.
Uso of purchaser1» employees. When the maximum f«o«b. shipping point price is paid for waste-paper, services of the purchaser's employees in assisting in the loading of the purchaser's truck at the seller's place of business, constitute additional compensation to the seller and are not permissible under the Regulation. However, such services may be utilized if the sale price, plus the value of the services will not exceed the maximum price permissible under the Regulation.
Transportation charges. Where a sale is made on an f.o.b. shipping point basis, any payment by the purchaser to a third person for transporting wastepaper to the purchaser's plant, subsequent to loading at the shipping point, is not to be considered in computing maximum prices under the Regulation. Thus, if the purchaser sends his own trucks to bring the wastepaper to his plant, or to have it loaded on freight cars or barges, there Is no limitation In the Regulation upon the amount of the transportation charge after the material has been loaded on the trucks at the shipping point. However, If the seller has a rail siding, or barge dock upon his premises, he must load ths paper upon oars or barges at his own expense, and if the loading is done by the purchaser the value of such loading must be deducted from the maximum price under the Regulation,
Shipment In seller's vehicle. The Regulation provides that when the point of shipment and the buyer'» business are not located in the same city, town or municipality and are at a distance of more than ten miles from each other by the shortest available public highway route, the maximum charge for transportation In the seller's vehicle must not exceed the lowest published rail rate. When two carload rail rates are published for different minimum quantities, the one for the larger quantity is the one that must bo used; e.g., If the rate per cwt., for carload containing a minimum of 30*000 pounds Is 8#, and the rate for a carload containing a minimum of 24,000 pounds Is 9#» the 8# rate is applicable.
Differential for loading at team truck or public siding. A differential Is allowed when freight cars are loaded at a team truck or public siding under the circumstances specified in the Regulation. A differential is not allowed whan freight cars are loaded at a private siding.
Unlisted, grade. Where a maximum price for an unlisted grade of wastepaper is proposed pursuant to Section lj47.14(c), and it is subsequently approved by OPA, the maximum price is effective as of the date the application was filed.
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Export packaging. The following operations do not constitute "special packaging" within the moaning of Section 1347.4, which permits an addition for "specially packaging wastepaper for export": packaging in 500 pound bales, rather than the customary 1000 pound bales; affixing labels which show the bale number and weight of each bale; preparing a loading record showing the number and weight of each bale.
"Mixed books* sold for use in manufacture of paperboard. Where wastepaper meets the requirements of the grade "mixed books* but is sold for use in the manufacture of paperboard* the prices of the wastepaper is that of "No. 1 mixed paper", Section 1347.14 footnote 23. In accordance with the understanding of the trade, this price limitation applies only where the purchaser uses the mixed books for making paperboard, without first sorting out the higher grade fibers for other uses. Consequently, the price limitation does not apply where the purchaser aorta out the No. 1 heavy books and magazines and uses them in the manufacture of book paper or book paper liner even though he uses the remainder of the material in the manufacture of paperboard.
Unlisted grads - effective date of maximum price. Before an unlisted grade of waatepaper may be sold the seller is required to file a statement setting forth the facts concerning the unlisted grade. Section 1347.14(c). The maximum price for the unlisted grade is effective as of the date of the seller's statement, provided that the statement substantially complies with the requirements of Section 1347.14(c). The maximum price so established is subject to adjustment by OPA.
Imports - broker's comnissions. A domestic mill entered into a contract to purchase wastepaper through an agent residing in Canada. The agent is to pay the maximum price for the paper f.o.b. a Canadian dealer's place of business. The agent pays for the wastepaper with his check and the mill reimburses the agent this amount, plus all transportation charges to its mill, plus a specified commission of $1 per ton, or a minimum of $500 per month, plus $200 a month for the agent's increased office expenses. The contract is In violation of the Regulation because: (a) the price paid by the mill Is in excess of the maximum price for Imported wastepaper f.o.b. port or city of entry In the United States (the maximum price Is not f.o.b. a Canadian dealer's place of business) Section 1347 »5» and (b) the agent la not entitled to any commissions over «nd above the maximum price, since he does not perform the functions of a broker within the meaning of the Regulation. A brokerage operation, as contemplated by the Regulation, involves an independent operation where the broker is the actual principal and not as in this situation, an agent acting for an undisclosed principal.
Brokerage commission - inter-company sale. Under the Regulation a person may not receive brokerage commission "on wastepaper packed by him or by any person with whom he has any connection conaietlng of any community of ownership . • Hence, a broker corporation may not receive brokerage commission over and above the maximum price, upon wastepaper purchased from a packer corporation, when the stock of both corporations Is owned by the same person or person«n
"Mo* 1 news" of the highest quality consists of 100£ waste newspapers, entirely free of objectionable papers and foreign materials. Lower quantities of this grade may sell at the maximum price listed In Section 1347.14, only If they meet the minimum specifications of the grade, i.e., the packing Is sufficiently free of objectionable paper«, foreign materials and fibres other then newspaper, to form a commercially acceptable delivery by the customary standards of the trade.
Transportation charges - delivered sales. Where a seller makes delivery by public carrier, he may add to the established maximum f.o.b. price an amount not in excess of the "lowest established transportation rate for such shipment". This re fere to the loweet rate applicable considering both the size of the delivery made (e.g., carload or lees than carload) and the type of carrier actually used (e.g., railroad or truck). Thus, where a less than carload delivery Is made by railroad, the lowest established less than carload railroad rate may be added.
Classification
"Overissue news." Colored newspaper supplements (eg., colored comic supplements) cannot be classified as "over-issue news" and should be classified as "No. 1 news", al though, because of their color, they are not the highest quality of that grade.
^1® Interpretation applies to overissue consisting solely of the colored supplements. Where the overissue being disposed of Is the entire newspaper, including colored supplements along with the regular newsprint, the "overissue news" classification applies.
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Itoused overissue newspapers with the rotogravure and stapled sections removed, are included in the classification "overissue news".
Boxboard cutting. Overissue moving picture poster which is printed and has a regular chipboard back is included in this grade.
New IQQjb kraft corrugated cuttings. Cuttings from corrugated paper with two liners 1004 kraft and a corrugating medium of .009 straw are classified as & lower quality of "New 1004 Kraft Corrugated Cuttings". Cuttings from corrugated paper with two liners of 804 kraft and a corrugating medium of .009 straw are classified as "New Corrugated Cuttings."
No. 1 assorted kraft (old kraft). This grads ineludes wastepaper known as empty scrap kraft chemicals bags.
Printed wall paper waste. Printed wall paper is classified as "No. 1 Mixed Paper".
Violations and Evasions
Tying agreements. The Regulation o^ressly forbids ths transfer of wastepaper in conjunction with any other material, if it will constitute a direct or indirect method to evade the maximum prices provided therein. A tying agreement or other device in connection with the sale of paperboard, which in effect creates a higher price for wastepaper than established in the Regulation, is an evasion thereof; where a mill forces its paperboard customers to sell to it their waste-paper, a violation of the Regulation exists.
Definitions
Magazines. The term "magazines" as used, in the footnotes to Section 1347.14, defining the listed grades of wastepaper, includes mail order catalogues.
"Prior to present war.* Amendment 5 to the Regulation allows certain grades of wastepaper to contain groundwood where such grades contained, no groundwood "prior to the present war". The term "prior to the present war" means prior to the entry of the United States in the Second World War, December 7, 1941.
Records and Reports
Invoicing - unlisted grades. The Regulation provided that all wastepaper must be invoiced by the appropriate grade name provided by the Regulation. Where the seller has obtained the approval of his maximum price for a grade not listed in the Regulation, and has been advised by OPA that his specialty Is equivalent to one of the listed grades, he should use the listed grade name, adding his specialty designation if he desires. If the specialty is not equivalent to one of the listed grades, the dealer may invoice the wastepaper under the specialty designation.
Price Schedule No. 32
PAPERBOARD SOLD EAST OF THE x'DCKY MOUNTAINS
Applicability
General. The Schedule Is applicable to the sales and purchases from any producer, agent, or representative of a producer of paperboard. Paperboard is defined to mean all kinds, grades, types, calipers, colors and patterns of paperboard. "East of the Rocky Mountains" Include all the area of the continental United States except the States of California, Oregon, Washington, Idaho, Utah, Nevada, New Mexico, Arizona, Colorado, Wyoming and Montana.
Corrugated boxes made from purchased corrugated sheets cut to size and ready to use, and which sheets are then put together by slotting and attaching tape, are not paperboard and are not covered by the Schedule; Regulation No. 187 (Certain Paperboard Products) applies.
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Grades and types of paperboard, listed in Appendix A are subject to the Schedule, whether or not they are pasted. The grade* and types of paperboard listed in Appendix B are not subject to th* Schedule when laminated..
Sal** of 1*** than one ton. The sale of all quantities of paperboard are regulated, by th* Schedule, including sales of to* than one ton.
Shipment Into Western area. The sale of paperboard produced east of the Rocky Mountains and. shipped into the Western area is subject to the Schedule.
Wholesaler. The Schedule is applicable only to sales by and purchases from any producer, agent or representative of a producer, Accordingly, sales of paperboard, by wholesalers er distributors win do not act, directly or indirectly, as agsnts of producers, are not covered.
Corrugated shoots made from paperboard are net subject to the Schedule; Regulation 187 (Certain Paperboard Products) applies.
Creator shell board, fulfilling all the definitions in ths trade of full bending chipboard is covered, by the Schedule.
Mewsboard is covered by ths Schedule.
Paperboard used, in manufacture of corrugated, sheets is subject to ths Schedule.
School pads with peporboard bactors ar* not covered sine* th* Schedule does not apply to items only part of which consists of paperboard..
Strawboard is subject to the Schedule.
White lined news is subject to the Schedule.
Price Dotorainatloa
Qoneral. Ths Schedule establishes maximum prices in dollars and cents per ton or per M square foot of paperboard of the typos described, in Appendices A aad B. These maximum prices are prices delivered to the purchaser's plant actually using the paperboard. freight adjustments are allowed in certain cases as is set forth in ths Schedule. The maximam prices for paperboard and specialty paperboard, not covered by Appendix A or B, aro the highest price per ton or per M square foot charged by the producer during the period October 1, 1940, to October 15, 1941, Appendix C. The maximum prices provided for in Appendix 0 aro (1) either f.o.b. will price, or (2) delivered price, or f.o.b. the Mil full freight allowances, or (J) partial freight allowance.
Several shipments. The naxlHun price established by ths Schedule is based upon the quantity or quantities deliverable in conformity with the terns of the order accepted by the seller. Thus, if delivery, in conformity with the terns of one accepted order, is mads la several shipment* over a period of tins, the price per ton of such shipments nay not exosed the maximum price established for the quantity specified In the order for that shlpamnt.
Dlfforentials for loss than one ton sale. Salos in quantities of loss than one ton met not exceed the base price, plus ths proper differentials for quantities 19 to throe tons.
Transportation charges - delivery to warehouse. Ths naximun prices ars stated as prices for deliveries «to the purchaser's plant actually using ths paperboard.« The prices so stated ar* applicable to deliveries to the purchaser's warehouse and hence include ths transportation costs to the warehouse.
AdjustaMs pricing. Under Section 1J47.58a, a seller may agree to charge th* priced la
effect at th* tin* of delivery. Where paperboard 1* sold f^.b. the will, «delivery11 tatos place upon receipt of the paperboard by a carrier, not owned or controlled by the shipper, for shipment to the purchaser.
18:5
Cl a* »1 fl cation
Pinewood is under the classification of "Bogus’ Corrugated Material."
Records and Reports
Records to be made. The recording of a purchase oust be nade when the purchase is completed, not when the order is placed. A purchase has been nade when the ownership of the particular naterial sold passes, regardless of where the naterial nay be at that tine.
Maxinun Price Regulation No, 47
WASTE RAGS, WASTE ROPES, AND WASTE STRINGS
Applicability
General. The regulation is applicable to the seller and purchaser of waste, rags, ropes, and strings in any quantity of the kinds and grades described in the Regulation.
Inports. The naxinun prices established, by the Regulation apply to the sale of waste rags, ropes, and strings purchased from abroad.
Ro, 1 nanila rope broken up into fibres. The sale of fibre obtained from Nd. 1 Old Manila Rope by sorting, grading, and breaking up into fibres is not a sale of Ro. 1 Old Manila Rope, and therefore is not covered by the Regulation.
Sale of old nanila rope to be reused as rope. The sale of old manila rope which la to bo roused as rope is not subject to the Regulation. A seller of old nanila rope for this use should require of the purchaser satisfactory proof in writing of the proposed uso.
"Wiping rags* are not subject to the Regulation.
Scrap or gunny bagging which is to be shredded end nade into bagging is not subject to the Regulation.
Price Determination
General. The Regulation establishes naxinun prices per short ton f.o.b. point of shipment• Where sales are on a delivered basis the naxinun price is the established point of shipment price, plus transportation allowances sot forth in the Regulation.
Preniuns for trimming or dressing. A preniun nay not be charged above the marl«» prices for old rags for operations known as trimming or drossing which consists of the removal of buttons, rubber, etc.
Premium for old nanila rope. A preniun cannot bo charged above the naxinun price for old Manila rope because such rope is extra dry.
Transportation charges to the dealer’s place of business. A dealer purchased waste rags at towns A, B and 0, and shipped then to his place of business in Chicago, Illinois. The waste rags were accumulated at his place of business until he had a carload shipment • The carload of rags was sold and shipped to a consumer. The dealer nay not add to the naxinun price the transportation charges from towns A, B and C to his place of business In Chicago. The Regulation provides that naxinun prices are "f.o.b. point of shlpnent, which naans that they are established at the point where the goods are first loaded on freight cars, trucks or barges for transportation to the buyer". Section 1347.114(d). Therefore, transportation charges iron the point of origin to the dealer's place of business where the rags are accumulated for shipping in carload quantities nay not be added to the dealer's naxinun prices.
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Transportation charges - unloading. Section 1347.114(d)(1) sets forth the amount of transportation charges that nay be added to the maximum f.o.b. prices by a seller who delivers in his own vehicle. Although the industry has generally considered that "delivery* is completed before unloading, and therefore the seller could require the buyer to unload, nevertheless, by trade custom, sellers who in fact did unload, have not been considered ae having deme any service after delivery for which they were entitled to extra payment. Hence, charges for unloading or for tine spent waiting for unloading at the buyer's plant, may not be added to the maximum price by the seller. This interpretation is based upon the customary practice of this industry, and hence is not necessarily applicable to regulations other than Regulation No. Uj.
Definitions
Wiping doth. See page 18:18.
Maximum Price Regulation No» 114
wooifulp
Applicability
Manufacture of pulpwood into items other than woodpulp. See page 18:14.
Effective date. The Regulation provides that on or after April 20, 1942, the effective date of the Regdatlon, no person in the course of trade or business shall buy or "receive" woodpulp in the continental limits of the United States at more than the maximum prices set forth in the Regulation. Hence, woodpulp may not be isported from Canada after April 20, 1942 at prices in excess of the maximum prices, even though title to the woodpulp passed to the purchaser in Canada prior to that date.
Price Determination
Taxes
Prei^it tax under 1942 Revenue Act, Under the Regulation the producers of woodpulp may add to the maximum delivered prices any freight in excess of the appropriate basic transportation allowances specified In Section 1347.232(a)(3)• Under Supplementary Order No. JI, Tar on Transportation of Property Iiposed by Revenue Act of 1942, the 3% tax on freight is treated by OPA as an increase in freight. As a result, producers of woodpulp must absorb the 3% tax in every case where the freight Involved in a shipment, plus the tax, is less than or equal to the appropriate freight allowance. Producers need not, however, absorb more than the appropriate freight allowance In the Regulation, treating the tax as if It were freight. Consequently the consumer may absorb any excess freight Including the tax, over and above the amount of the allow-aace*
Maximum Price Regulation No. 129
MISCELLANEOUS PAPER PRODUCTS
Applicability
Manufacturer. A purchaser of base paper who treats it with a preparation to obtain a finished product of gummed or waxed paper is a manufacturer of gummed or waxed paper subject to the Regulation. Waxed papers, Including cutter box or household rolls, are subject to Regulation No. JO? (Waxed Paper).
Paper tubes, cones and cores. The Regulation is not applicable to the sale of paper tubes, cones and cores; Regulation No. 187 (Certain Paperboard Products) applies.
600780 0 - 44 - 20
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Paper container»» " set-up»" and folding boxes. Paper container», aa that term is understood in ths trade, are subject to the Regulation. However, "set-ups", folding boxes or "knock down»" and corrugated containers are not usually regarded in the trade as paper containers and are not subject to the Regulation. They are covered by Maximum Price Regulation No. 187 (Certain Paperboard Products).
Tuck-in cartons. Tuck-in cartons are not included wader the definition of "paper cups, paper containers and liquid tight containers" and therefore are not subject to the Regulation. Tuck-in cartons are subject to Regulation No. 187 (Certain Paperboard Products).
Paper jackets for bank pass books. Paper Jackets for bank pass books, whether plain or printed, are subject to Regulation No. 129 aa "envelopes". Where the paper jackets are printed by a person other than the manufacturer, this service is subject to Regulation No. 225 (Printing and Printed Paper Commodities).
Specialty bags. Specialty bags are not "Paper containers". Section 1347.11(a)(2), and hence are not subject to Regulation No. 129; MFR 463 applies.
Sputum wp. See page 18:10.
Colored KTaft paper. See page 18:9.
Gwamed tape made from cloth. See page 18:18.
Price Determination
Transportation charges - absorption of freight costs by buyer. Manufacturers of Industrial paper and converted paper products may not add increased freight costs to their delivered marlmum prices. Manufacturers who allowed partial freight must absorb the 6-porcont increase in freight rates, effected in March 1942, and any other increase in freight costs incurred as the result of wartime emergency conditions, such as the rerouting of shipments by rail instead of water, in whatever amount is necessary so that their buyers shall not pay a larger proportion of transportation costs incurred in the delivery than they paid during the applicable base period. If the manufacturer customarily paid all freight costs he must continue to do so. Por example, a manufacturer of paper products who made a specific allowance of 50/ per hundredweight during the applicable base period (October 1-5, 1941 and December 1-15, 19^1) used in the Regulation, must adjust his allowance to 53/ P®r hundredweight.
Maximum Price Regulation No. 130
STANDARD NEWSPRINT PAPER
Applicability
Product manufactured from newsprint paper. Where a company purchases newsprint paper from which it manufacture» another product, the sale of snah product is not subject to the Regulation.
"Novel news" or "Novel paper". See page 18:18.
Prlc® Determination
No extra charge for less than carload lot and water lining treatment. A differential may not be added to the maximum price for deliveriee in less than carload lots, or for waterlining treatment.
freight Increase under 19^2 Revenue Act. Under Section 1347.273, the 3% tax on freight MH a imposed by the 1942 Revenue Act may be added to the maximum f.o.b. prices, provided that the seller invoices it separately and it is paid by the purchaser. (This Regulation is expressly excepted from the provisions of Supplementary Order No. 31).
18:8
Ream of paper. The definition of a ream of paper as "a sealed or banded package containing 500 sheets of newsprint paper”, footnote 2 to Section 1347.283(d)(l)(ii), applies regardless of the size of the sheet. Therefore, if one ream of paper is cut into sheets one-fourth the size of the original sheets, four reams of paper will result, and a sale of these reams in one lot constitutes a sale of four reams.
Conversion differential. During the base period, October 1-15, 1941, a converter charged a con-verslon differential of $3 per ton on sales to customers in the United States, and $5 per ton on sales to purchasers in Canada. The converter's highest conversion differential under Section 1347.283(b)(1), on sales to customers in the United States, is $3 per ton; conversion charges to purchasers in the United States may not be based on charges to purchasers outside this country.
Maximum conversion charges.
Question: During the base period a seller charged varying conversion differentials to purchasers in different zones. May the seller base his maximum conversion differentials on the highest of the differentials charged to all his customers, regardless of location?
Answer: Yes, the seller is not limited to the maximum base period charges made to purchasers in the particular zone in which he is located, Section 1347.283(b)(1).
Definition
Ream of paper. See - page 18:9«
Records and Reports
Conversion charges. The Regulation requires every converter of newsprint other than a manu-facturer, to file with OPA a statement setting forth his maximum conversion differentials during the base period October 1-15, 1941 before he may charge for any conversion operation; the filing of such a statement prior to November 10, 1942, the date of the Revised Regulation, does not constitute compliance with this requirement.
Maximum Price Regulation No. 140
SANITARY NAPKINS
Price Determination
F.o.b, pricing. The Regulation established maximum delivered prices. Sanitary napkins may be sold on an f.o.b. basis, provided the f.o.b. sale price plus the transportation charges do not exceed the established maximum prices.
Maximum Price Regulation No. 182
KRAFT WRAPPING PAPERS AND CERTAIN BAG PAPERS AND CERTAIN BAGS
Appiiçability
Colored Kraft paper. Kraft wrapping papers, whether colored or not, are covered by Regulation No. 182, if sold at the manufacturer's and distributor's levels. All other wrapping papers are covered by Regulation No. 129 (Miscellaneous Paper Products), if sold at the manufacturer's level, and by Regulation No. 349 (Distributor's Maximum Prices for Certain Coarse Paper Products), if sold at the distributor's level.
18:9
Violations and Evasion»
Quantity and, »one differentials. OPA Release T-95» issued, September 2, 1942, states in part a* follow» concerning the addition of manufacturer’» sone and quantity differential» in certain •ale» of lea» than earload lots:
"The Regulation establishes specific price differentials for manufacturers’ sales of less than earload lot» and provided that these may bo passed on by the merchant to his purchaser only in those cases «here the merchant himself paid the differential to the manufacturer.
■The Regulation allow» manufacturer* to add 250 per hundred weight on orders of less than 20,000 pounds and 12.50 per hundredweight on orders of 20,000 pounds to a carload. No differentials are provided for earload lot orders.
■If the merchant purchased his paper on a carload lot basis, he may not add the manufacturer's quantity differential on any sale of such paper.
"The same interpretation was made with reference to sone differentials provided by the Regulation for manufacturers. The only sales in which a merchant may add any of the listed differentials are those in which the differential is included in the manufacturer's price. In other words, a merchant accepting delivery in Zone A, for which no differential was provided by the Regulation, may not add the 250 or 500 sone differentials even though he resells the psper to customers in Zone B or Zone C."
Maximum Price Regulation No. 187
CERTAIN PAPERBOARD PRODUCTS
Applicability
Manufacture for own use. A manufacturer of boxes who uses the boxes for packaging his own commodities is not subject to the Regulation. The manufacturer should file a report with OPA stating that he does not sell the boxes and that he manufactures them solely for his own use.
Manufacturer of cardboard toys and games. Manufacturers of toys and games are generally covered by Regulation No. 188 (Manufacturers' Maximum Prices for Certain Specified Building Materials and. Consumer»' Goods Other Than Apparel), oven though the toy or game is made entirely of cardboard. However, if the manufacturer of the cardboard toy or game also manufactures folding cartons, solid fibre boxes, set-up boxes, pads or partitions. Regulation No. 187 applies to the •ale of cardboard toys or games manufactured on the same converting equipment.
Tuck-in cartons. See Digest No. See page 18:8.
Sputum cup. A paper sputum cup is subject to Regulation No. 187 M a "folding carton"• Regulation No• 129 (Miscellaneous Paper Products) is not applicable.
Coat hangers. The sale of paper or paperboard coat hangers, or coat hangers made entirely of paper except the hook, is subject to Regulation No. 18? at the manufacturer*s level, tq Regulation No. 3^9 (Distributor»' Maximum Prices for Certain Coarse Paper Products) at the distributor's level and to the General Maximum Price Regulation at the retail level. Wood and. metal hangers at the manufacturer's level are covered by Regulation No. 188 (Manufacturers' Maximum Prices for Specified Building Materials and Consumers' Goods other than Apparel) and at the retail level by the General Maximum Price Regulation.
Used products — used reliner». The Regulation does not spply to the a ale of used paper products, including used reliners contained in corrugated boxes; the General Maximum Price Regulation applies.
18:10
Price Determination
Resales by manufacturer. A manufacturer purchases from another manufacturer the same product that he manufactures. On a resale of the purchased, product the maximum price is the same as that established for the product which ho manufactures. since Section 1347.401(b) provides that no manufacturer may sell or deliver any eonmodity covered by Regulation No. 187 at prices higher than those provided in the Regulation.
Royalty pay—nts may not be added to the established maximum prices of paperboard products.
Manufacturer of paperboard products. A maker of shoo boxes who purchases flat corrugated containers, sots them xqp, prints them, and. then packs and seals shoe boxes in them, is a "manufacturerR within the meaning of Sootion 1347»412(a)(9), since he assembles corrugated containers, and thereby renders a service toward the completion of a commodity covered by the Regulation.
Makers of garment boxes who purchase scored and silt corrugated, sheets, and then stitch the corners of the sheets to complete boxes, are also "manufacturers* under the Regulation.
Maximum Price Regulation No. 225
PRINTING AND PRINTED PAPER COMMODITIES
Applicability
Exempt sgles - persons "primarily engaged* in publishing, printing etc. - gross sales. The exertion Im Section 1347.^51(0) applies only to a person who is "engaged primarily in the business of publishing, printing, typesetting ..." A person is "engaged primarily" in such business when the major part of his gross Income is obtained, by selling printing and related aerricea, and. the products thereof. Hence, a vocational school whoso major source of income is derived from sources other than printing and related services is not exempt, oven though its "total gross sales in 1941 of printed ’papers’ and printed paper products and services in connection therewith did. not exceed $20,000.*
Salo to affiliated corporations and employees. A sale by a corporation of printing or a printed paper commodity, covered by the Regulation, is not exempted because it is made to the corporation's employees or to a subsidiary or affiliated corporation.
Part of services exempt. Where a company prints and mails advertising material as a single service, the service la exempt from price control under Appendix B of Regulation No. 225 and Revised Supplementary Regulation No. 11 to the General Maximum Price Regulation. The fact that the company also prints the letterheads and envelopes used in this service does not change this result, since ths entire service is regarded by the parties as a unit and charged for accordingly.
Exemption for email business. In determining whether a small business had "total gross sales in 1941 of printed papers and printed paper products and aorvlcea in connection therewith* of $20,000 or lean, consideration must be given to the gross sales of all printed papers, and printed paper products and services in connection therewith, whether or not such products and aorvlcea are Hated in Appendix A or Appendix B of the Regulation.
"Entire calendar year." The term "entire calendar year" as used in Sections 1347.451(c) and 13^7*4^3(c)» exempting certain persona from the Regulation or from ita reporting requirements, refers to a calendar year (January 1 - December 31) and not to any continuous 12-month period. Thus, where a person started in business on June 1, 1941, he does not come within either exemption, unlees and until hie total gross sales for the calendar year ended December 31, 19U2, are lower than the prescribed amounts.
Multlgraphing, miyographing, etc. Multigraphing, mimeographing, reproduction by electric typewriter ana. all similar methods of reproducing constitute "printing* services under Appendix B, Services, Section 1347.476. Sales of commodities listed in Appendix A, Section 1347¿475, when produced by these methods of reproduction, are also covered by the Regulation.
18:11
Manufacture and, »ale of decalcomanias. The manufacture and sale of decalcomanias for use on instrument panels, fuselage, and wings of airplanes are not subject to the Regulation; the sale of such items is exempt from price control pursuant to RSR No. 1, as a sale of component parts of aircraft.
Check books. Charges made by a bank to its customers for printed check books, or cheek books with special overprinting requested by a customer, e.g., check books with customer’s name imprinted thereon, are subject to the Regulation.
Timetables and tariffs are not listed in Appendix A, Section 13^7»^75, and are therefore not covered by the Regulation. They are exempt from price control under Supplementary Regulation No. 1, Section 2.4(a), and Revised Supplementary Regulation No. 11, Section 1499.46(b)(6?)(1) •
"Greeting cards and related products*1 containing advertising matter. The sale of commodities which are specifically listed in Appendix A, Section 13^7 .^75 »••£•» calendars and decorated tags, are subject to the Regulation, even though they contain some advertising matter. If the article containing the advertising matter is not listed In Appendix A, It Is exempt from price control under Supplementary Regulation No. 1 to the General Maximum Price Regulation. The following are specific examples:
Restaurant post card with the picture and name of the restaurant on one side of the card is a •’souvenir post card* covered by the Regulation, even though it contains some advertising matter.
Duplicate post cards follow the same general rules specified for the coverage or exemption of single post cards.
Post cards Illustrating and, describing merchandise are "advertising matter printed on paper” under Supplementary Regulation No. 1 to the General Maximum Price Regulation, and since such cards do not fall within any of the listed Items in Appendix A of Regulation No. 225, they are exempt from price control.
Post card enclosures which are fastened into catalogs or magazines or enclosed with pamphlets for use In ordering merchandise, samples, etc., are not "enclosures" under the term "decorated tags, seals and enclosures* in Regulation No. 225, since the term "enclosures" In that Regulation refers to decorated enclosures used in connection with gifts and greetings. These items are also excluded from the General Maximum Price Regulation as "advertising matter printed on paper" and, therefore, exempted from price control.
Calling cards. Cards containing a colored Illustration of a restaurant or bar on one side and the name and address of an organization or of a person on the other side, sc that they may be used as personal business cards are "calling cards" subject to the Regulation.
Printed, gum sticker. A gummed sticker bearing an insignia and ths words "Auxiliary Police" or "Air Raid Varden" does not fall within any of the items now listed in Appendix A, Section lj4j.475, and therefore it is not subject to Regulation No. 225. The sticker Is also exeapt from the General Maximum Price Regulation pursuant to Supplementary Regulations Nos. 1 and 11 as "advertising matter printed on paper."
Sample cards with swatches and printed matter. Sample cards to which are affixed swatches of thread, yarn, fabric or linoleum, with printed matter describing the swatches and giving the name and address of the seller of the products are "advertising matter printed on paper* under Supplementary Regulations Nos. 1 and 11 tp the General Maximum Price Regulation. Since such cards do not fall within any of the listed items in Appendix A of Regulation No. 225, they are exeapt from price control.
Paper jackets for bank pass books. See page 18:S.
Bottle collars placed on milk bottles by a dairy company to advertise the company's products, and requesting prompt return of empty bottles, are subject to Regulation No. 225 »» package wraps or bands. The fact that during the certain times of the year the bottle collars set forth seasonal greetings, does not make them seasonal commodities subject to Regulation No. 210 (Retail and Wholesale Prices for Mil and Winter Seasonal Commodities)•
18:12
Terrestial globes are "maps" under Supplementary Regulation Nos. 1 and 11 to the General Maximum Prioe Regulation. Since such globes do not fall within any of the listed items in Appendix A of Regulation No. 225, they are exe^>t from price control.
Exempt sales - persons "primarily engaged" in publishing printing, etc. An exemption is granted under the Regulation to small printing and publishing concerns, provided that they were "engaged primarily* in such business in 1941, Section 1347.451(c). A concern in 1941 took orders for the sale and delivery of letterheads and envelopes. It did no printing itself but hired a job printer. This concern is not within the exemption, because it was not "engaged primarily" in the printing business, doing no printing; nor was it engaged in the publishing business, since it was not the creator of any commodity.
However, a small company which was engaged in the business of creating and selling copyrighted accounting books and duplicate pads is within the exemption, since it was primarily engaged in the business of publishing, even though the printing work was done by a job printer.
Services - mailing services. A person is employed by a telephone company to perform a mailing service. The service consists of the insertion of printed notices into envelopes and sealing and mailing the envelopes. The printed notices and envelopes are supplied by the telephone company. This service Is subject to the Regulation as a service related to printing, publishing, etc.. Section 1347.476. Other allied services covered by the Regulation are filling in, folding, assembling, flapping» sealing, labeling, addressing, stamping and any variations thereof.
Tax bill forms. The sale of tax bill forms to a municipality is a sale of "printed paper commodities", covered by the Regulation.
Price Determination
Sale of commodity since base period. The maximum price for any commodity or service which was not sold, delivered, or offered for sale in March 1942, is determined under Section 1347.453.
Base period "margin*. In pricing a commodity under Seotion 1347.453, the seller must use the margin employed by him in pricing the "most nearly comparable commodity or service" sold to a purchaser of the sane class in March 1942. Only one commodity, sold to a purchaser of the same class, may be considered the "most nearly comparable commodity."
"Sane comaodity or service*. The delivery of letterheads which are Identical with those sold or supplied during the base period, March 1942, except for differences in name, address and telephone number, constitute the delivery of the "sane commodity or service* under the Regulation.
"Same or similar" service - pricing on overtime basis. A job shlch was priced on the basis of overtime during the base period may not be used to determine the maxi sun price of the same job which is now priced on the basis of regular tins. The base period overtime job is not the "same or similar* as the one performed on regular time, since the factor of overtime constitutes a substantial change in job specifications. If the seller did not perform the same or similar job on the basis of regular time during the base period, he must price it under Section 1347.453, or Section 1347*456, whichever is explicable.
Adjustment of prices. Where a person seeks authorization to establish maximum prices under Section 1347.456, he may quote the proposed prices immediately after they have been filed with OP A without waiting for the expiration of the 20-day period. However, the quoted prices are subject to adjustment for any sale made during this period pursuant to Section 1347.455, entitled Similar commodities or services subsequently sold.
Transfer of business - consolidation of businesses. A corporation was incorporated in July 1942, as a consolidation of two corporations operating in the same city. The new corporation carries on its business at one of the plants formerly operated by one of the predecessor corporations. The Regulation provides that If the business, assets or stock in trade of any business are sold on otherwise transferred after April 28, 1942, and the transferee carries on the business in an establishment separate from any other establishment previously owned or operated by him, his maximum prices are the same as those of his transferor. Section 134J.457. The maximum prices of ths new corporation are those of the business establishment at whose premises the new business is now being operated, since the new corporation Is carrying on the business at the establishment of one of its former owners.
18:13
Exempt sales. Two persons operated, a publishing and printing company ns a partnership until .Tnly 15, I9U1. On that date the company was sold to a third person who continued to operate it as an individual proprietor during the balance of the year. The total gross sales by the partnership and the individual proprietor during the entire year of 1941 were loss than $20,000. The company is exeapt from the Regulation pursuant to Section 1347 .451(c), even though there was a change of ownership in ths middle of the calendar year of 1941. Section 1347*457» entitled, Transfer of business or stock in trade, provides that status of the transferee shall be the same as his transferor under Section 1347«^1(6) •
"Same or similar" service or commodity - substitution of steel for copper plate. Due to the far Production Board’s curtailment of the use of copper in engraving plates, many sellers are using steel plates. The service of engraving on steel is not the "same or similar* to the service of copper engraving, since the two are not a typo which would ordinarily be sold for the same price, and they are not produced according to the same specifications or by the same productive operations. Hence, the prices charged in March 1942 for copper engraving services do not establish maximum prices for stool engraving. Similarly, the maximum prices for commodities listed in Appendix A which are produced by the use of steel plates are not determined by the maximum pride of commodities produced by copper platos. Therefore, ths maximum charges for engraving on steel as a substitute for copper, should be determined under Section 1347»453* "resales* of such a oommodi ty, determined under Section 1347.454.
Records and Reports
"Entire calendar year." See page 18:11.
Salo by printer through a distributor. A printer sells commodities subject to the Regulation through a distributor. The distributor takes the order from the customer and transmits it to the printer. The printer quotes a net price to the distributor who In turn quotes his own price to the customer. The printer sends the commodity directly to the customer, billing him the price agreed upon between the distributor and the customer. When payment is remitted to the printer, he deducts the amount due him from ths distributor and transmits the remainder to the distributor as his commission. The printer has the option of accepting or refusing any order, and the distributor does not guarantee payment by the customer so that the risk of financial less rests upon the printer. This transaction is an "original sale* by the printer, for which maximum prices must be filed pursuant to Section 1347.463(c). The printer must use his best efforts to determine the distributor's base period pricing practice. Including the distributor's markup.
This statement may be filed as a supplementary report in the form of -a letter«
Violations and Evasions
Reduction of allowances. A typographers association furnishing composition services during March 1942, customarily credited its customers with 15# per pound for all metal returned to it. It now desires to reduce the credit to 14# per pound. The reduction in credit for the metal from 15# to 14# per pound constitutes In effect an increase in the price of a service related to printing, and therefore is a violation of the Regulation.
Maximum Price Regulation No« 257
PULPWOOD PRODUCED IN OR SOLD INTO THE STATES OF MINNESOTA, MICHIGAN, AND WISCONSIN
Applicability
Manufacture of pulpwood Into items other than woodpulp. The sale of a species of wood listed in Section 13^7»35®(R)(4) for manufacture into items other than "woodpulp", as defined in Regulation No« 114 (Woodpulp), is not subject to the Regulation. Thus, the sale of a listed species of wood for the manufacture of box lumber is not covered.
Poplar wood used exclusively in the production of "insulite pulp* for manufacture into wood fibre structure Insulation board, is not subject to the Regulation, since "insulite pulp* is not "woodpulp" as defined in Regulation No. 114, Section 1347.229(a)(2)«
18:14
Commissions
Commissions. While no commissions may be added to the maximumpri cos, the Regulation doos not prohibit a mill from hiring persons to procure wood on a fixed monthly salary basis, provided that the amount of the salary is not dependent on the amount of wood procured.
Violations and Evasions
Sale of timber. The Regulation applies to the sale of pulpwood cut from the stump; it does not apply to a sale of standing timber or stumpage. However, it is an evasion of the Regulation to purchase stumpage at a cost in excess of the navi mum price for the pulpwood cut from the stump.
Cooperative association. Producers of pulpwood form an association which buys pulpwood produced by its members as well as by non-members. The association thereafter sells the pulpwood to consumers and charges a trader's commission. Thia arrangement constitutes a violation of ths Regulation with reference to that portion of the sales involving the pulpwood produced by the members, since these producers are receiving a dealer's or trader's commission in violation of Appendix 1(c)(2). The association may, however, charge the dealer's commission on sales of pulpwood produced by the non-members.
Maximam Prioe Regulation No. 266
CERTAIN TISSUE PAPER PRODUCTS
Price Determination
Retailer's "not■ cost." Where a retailor has not purchased toilet paper and paper towels since November 26, 19^, the effective date of the Regulation, ho cannot determine his "net cost" under the Regulation, and therefore, until such a purchase is made, he continues to prioe these products under the provisions of the General Maximum Price Regulation.
Distributor*s markup. In the sale of paper towels, the amount of the distributor's markup varies with the number of eases sold. Where a container is packed with 7.500 paper towels, it may be counted as two cases, sines "ease* is defined as a shipping container in which J,750 paper towels are packed.
Sales not on a uniform nationally delivered basic - "established differentials*. A manufacturer ships toilet tissue and paper towels in pool cars to a railroad siding and hires a local firm to deliver the merchandise to wholesale grocers. Ih no event may the wholesaler pass on this delivery charge, because it is not an "established differential* under Sections 1347«515(b)(3) and 1347.516(b)(2), and therefore is not part of the manufacturer's maximum price on which the wholesaler's markup ia baaed.
Retailer's "net cost" - advertising allowance. In determining "not cost" under Section 13^7«515(d)(2), the'retailor Med not deduct advertising allowances granted to him for advertising and promotional services which he actually renders. However, a retailer most bo consistent, and therefore, if he includes this item in his "net cost", he must also include it when determining his "March 1942 percentage markup".
Maximum Price Regulation No. 307
WAXED PAPER
Price Determination
"Pullished Hat price." A manufacturer of "miscellaneous waxed papers" (Appendix G) had no published price Hat during the base period. Each job was priced on an individual basis, usually in reply to a request for bids. The manufacturer determines his maximum prices in accordance with the formula set forth in Section 1347»621(b).
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Maximum Price Regulation No. 344
NEW COTTON, LINEN AND UNDERWEAR CUTTINGS
Applicability
Sale to industrial user. The sale of new cotton cuttings by a producer directly to an industrial user who manufactures small bag containers from them, is covered by the Regulation, unless the cuttings constitutes pound goods, remnants, mill ends or segregated large pieces, in which case Regulation No. 118 (Cotton Products) or the General Maximum Price Regulation applies, depending on the type of goods involved.
Maximum Price Regulation No. 349
DISTRIBUTORS» MAXIMUM PRICES FOB CERTAIN COARSE PAPER PRODUCTS
Applicability
Colored Eraft paper. See page 18:9.
Coat hangers. See page 18:10.
Price Determination
Sales of lees than one unit lots - distributor not in business during base period. In order to determine his markup on sales of less than one unit lots tender Section 15(1;, the distributor must have been in business daring March 1942. A distributor who was not in business during the base period must determine his maximum prices for these sales under the General Maximum Price Regulation.
Definitions
Distributor. Under Section 13(a)(10), a distributor means "any reseller oonmonly known and recognised as a wholesale paper merchant or jobber ..." A person who normally buys commodities listed in the Regulation from a manufacturer or converter, and resells them in substantially the same form to consumers, industrial users, etc., is commonly known as a wholesale paper merchant or jobber, and therefore is a distributor under the Regulation. Converters of any of the products listed in the Regulation are not deemed to be "distributors" within the meaning of Regulation No. 349.
"Case" of drinking and soda straws. The term "case", which is the pricing unit for "straws, drinking and soda", item Ul, Section 1(c), refers to the shipping case, and not to the smaller
cartons enclosed in the outer shipping case.
Maximum Price Regulation No. 361
PULPWOOD PRODUCED IN OR SOLD INTO THE STATES OF MAI W, VERMONT, NEW HAMPSHIRE AND NEW YORK
Price Determination
Maximum zone price. Under the Regulation, the zone where the pulpwood is cut from the stump, and not the zone where the consumer's mill or producer's residence is located, controls the maximum price. Hence, if pulpwood is cut in a sone where a higher maximum price exists, and is loaded on cars for delivery into an area where there is a lower maximum price, the higher maximum price may be charged.
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Where the pulpwood is cut partly in one zone and partly in another, the maximum price for each portion must be determined separately, by reference to the particular zone where each portion is produced.
Dealer's allowance. Section 9(f) permits a dealer's allowance of $1 per cord for deliveries to consumer of 1000 cords or more of wood under certain conditions:
A dealer agrees to sell 1000 cords to a consumer, but only delivers 500 cords, intending to deliver the remainder in the future. In order to receive the allowance, the dealer must have delivered the entire order of 1000 cords within the period from May 1 of any year to April JO of the following year; he may not receive the allowance for the 500 cords until the entire order of 1000 cords is delivered.
Maximum Price Regulation Ho. 365
HOOD MATCHES AND RESALE BOOK MATCHES
Applicability
Billboard, matches. "Billboard* matches are "special reproduction" book matches, a classification not covered by the Regulation; the General Maximum Price Regulation applies.
Classification
Billboard matches. Sse page 18:17.
Maximum Price Regulation Ho. 369
DRY ROOFING FELT
Applicability
Sales in rolls of less than 100 sq. feet. The Regulation establishes maximum prices for sales of dry roofing felt IS rolls of 100 sq. feet or more by any person at any level of distribution. Sales in rolls of less than 100 sq. feet ( which are usually made by persons other than manufacturers) are subject to the General Maximum Price Regulation.
Maximum Price Regulation Ho. J87
PULPWOOD PRODUCED IH THE STATES OF SOUTH CAROLINA, GEORGIA, FLORIDA, TENNESSEE, MISSISSIPPI, ALABAMA AND LOUISIANA EAST OF THE MISSISSIPPI RIVER
Price Determination
Sale ty contractor. A subcontractor has been in the practice of selling wood to a dealer and then reselling to contractor's mill. The subcontractor is not a producer of wood. The contractor has been financing the subcontractor who pays cash for the wood, as it is loaded. The subcontractor has made his profit on these transactions either by receiving a part of the contractor's profit or on his sale to the contractor.
Revised. Maximum Price Regulation No. J87 has made this way of doing business impossible.
The subcontractor and. the contractor now propose to form a partnership for the purchase and sale of wood. It is proper for the subcontractor to enter Into this arrangement, provided that neither of the partners have anything whatever to do with the production of the wood.
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Taxes Severance taxes.
Question: What should be done with the severance taxes assessed by the States of Louisiana and Mississippi against the owners of stumpage? It has been the practice in the past to collect this tax for the State govornnent. If the price was $6.50 per cord, the buyer would autumn y bill a transaction at $6.53, then deduct the J# severance tax and remit sane to the State. The problem now is whether this practice can be continued.
Answer: The practice which has been followed in the past cannot bo considered legal now. Revised Maximum Price Regulation Bo. 387 establishes a maximum price which may be paid. If, in addition to this amount, the buyer should pay the stoppage owner's liability on the tax it would exceed the coiling. If it is wished to continue collecting and paying over the tax, the price paid should bo loss than the Maximum price by the amount of the tax.
Mari num Price Regulation Bo. 44$
GS0UBDWOOD SPECIALTY PAPERS
Applicability
"Hovel news11 or "novel paper" averaging over .004 inch thick per sheet and used in "pulp" magazines is a "groundwood specialty paper* within the meaning of Regulation Bo. 449, «nd therefore is covered by it; it is not "newsprint" under Regulation Bo. 1J0 (Newsprint Paper).
Maximum Price Regulation No. 459
GUMMED IRAIT SEALING TAPE
Applicability
Gamed tape made from doth. The tern "gunned kraft sealing tape" does not indude gunmed tape made from material other than paper. A gumnod tape node from paper and doth is "gunned paper", covered by Regdation No • 129 (Miscellaneous Paper Products) •
Maxi nan Price Regulation No. 484
UNWASHED ABD WASHED WIPING CLOTHS
Applicability
Wiping doth. A rag or cloth is not a wiping doth within the meaning of the Regulation unless it meets the dimension specifications stated in the Regdation. Any rag or doth, washed or unwashed, which fails to qualify as a wiping doth, is covered by Regdation No. (Washed Rags, Waste Ropes and Waste Strings) provided that It Satisfies the requirements of that regulation.
Sales and rentals by linen supply house. Where linen supply companies rent service cloths or rags to restaurants, soda fountains, taverns and similar establishments for use as mops, wiping cloths or rags, the maximum price applicable to such rentals is governed by Regulation Bo. 165. Where, however, the cloths or rags are supplied with the understanding that they do not have to bo returned, the transaction must bo treated as a sale and not as a rental and the maximum prices applicable are those established by the Regdation.
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Bow naterial used for wiping cloths. The Regulation applies to the sale of old rags for use as wiping cloths. The sale of new naterial for use as wiping cloths is covered by the General Maximum Price Regulation. Regulations Bo. 118 (Cotton Products), or No. 127 (FinishedPiece Goods) whichever is appropriate.
Price Determination
Inbound transportation coats, k broker purchasing wiping cloths has them delivered to his warehouse where they are transferred into trucks and. delivered to his customer. The inbound, transportation costs incurred by the broker for the delivery to the warehouse must be absorbed by him. since the warehouse is the "point of shipment" within the meaning of Appendix A(e) entitled. Transportation aharges.
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PETROLEUM AND PETROLEUM PRODUCTS.
Price Schedule No. 42.
PARAFFIN WAX.
Price Determination.
Shipment of mixed lots. The maximum prices listed in the Schedule for shipments of paraffin wax In quantities of 10,000 pounds or more apply to shipments of 10,000 pounds or more if made to a single purchaser irrespective of the number of grades included in the shipment.
Transportation charges - charges from refinery or port of entry to shipping point. Where parafin wax in quantities of 10,000 pounds or more was shipped from the refineryit which it was last processed to New York City and purchased at that city by a San Francisco purchaser and shipped to San Francisco for resale, the actual transportation charges may be added from the refinery to New York and from that city to San Francisco, provided that such charges are shown as separate items on all records and invoices. Where the seller’s shipping point is other than a refinery, the Schedule provides for the addition of the actual transportation charges from the refinery at which it was last processed to the seller’s shipping point.
Transportation charges - delivered price. When wax is shipped from other than a refinery in quantities of 10,000 pounds or more, the Schedule allows the addition to the maximum price of the cost of transporting the wax from the refinery to the actual point of shipment. However, that addition ipay not be made when wax is shipped in quantities of less than 10,000 pounds, since the maximum price established by the Schedule for was shipped in quantities less than 10,000 pounds is a delivered price. *
Transportation charges - chargee for transporting crude wax from place of purchase to refinery. The cost of transporting crude wax from the place where it was purchased to the refinery where it is converted into refined wax may not be added to the maximum prices for fully refined wax; the provision for adding transportation charges when paraffin.is shipped from a place other than the refinery at which the wax was last processed would not permit such an addition inasmuch as the refinery where the wax is converted into refined wax is the refinery at which the wax was last processed.
Charges for containers. The maximum prices set forth in the Schedule include the cost of the containers listed in the Schedule. Tank car shipments are listed in the Schedule. Accordingly, where the buyer furnishes a tank car, the maximum price for the paraffin wax must be reduced by an amount equivalent to the rental charge for the tank car.
Weight of bag or barrel. The weight of the bag or barrel in which paraffin is sold may not be included in calculating the maximum price of a quantity of paraffin wax.
Maximum Price Regulation No. 88.
FUEL OIL, GASOLINE, AND LIQUEFIED PETROLEUM GAS.
, Applicability.
Retail sales. Sales made at retail service stations, garages, and stores are expressly ex-empted from the Regulation; sales made at other outlets, whether or not the sales are retail,
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are not within the exemption and hence are covered by the Regulation. Thus a retail sale from a tank truck is subject to the Regulation.
Farmers' cooperative. A farmers* cooperative is classified as a dealer and not a purchasing agent since, in addition to being a separate legal entity taking title to the motor fuel which is sold to farmers, it is usually financed by stockholders entitled to dividends up to certain limited amounts. As long as anyone in the cooperative is entitled to a dividend, the cooperative cannot be regarded solely as the purchasing agent of the farmer.
Bulk plants. See page 19:7.
Sale of motor fuel oil in barrels at bulk plant. See page 19:7.
Philgas is a liquefied petroleum gas and is covered by Section 1.1 of the Regulation. How-ever7 when it is sold as a motor fuel at retail establishments, Regulation No. 137 applies. When it is sold for use other than as motor fuel at retal establishments, the General Maximum Price Regulation determines the maximum prices.
Aviation gasoline of 87 octane rating or higher and certain components and mixtures, to the extent manufactured for and used in aviation gasoline of 87 octane rating or higher, are not covered by the Regulation.
Water gas tar and drip oil residue products obtained as a result of the manufacture of water gas from gas enrichment oil, are residual or distillate1 fuel oils, and therefore, covered by the Regulation.
Propane sold as a liquefied petroleum gas is within Section 1.1 of the Regulation.
Liquid butane gas and fuel oil sold to consumers from tank wagons and drums are subject to the Regulation.
Re-refined oil when sold for use as fuel oil is subject to the Regulation.
Re-fined motor oil. Re-fined motor oil, i.e., oil taken from automobile crank cases and again refined, is subject to MPR 510 when sold for use as motor oil and MPR 88 when sold for use as fuel oil*
Tar and light oils. The sale of tar and light oils derived from coal is not subject to the Regulation.
Heptane is covered by the Regulation.
Hextane is covered by the Regulation.
Octane is covered by the Regulation.
Sale by petroleum broker. A petroleum broker entered into a transaction with a refinery whereby hé paid the refiner for a petroleum product and directed the refiner to ship it from the refinery to the broker's customer, a manufacturer. The broker billed and collected from his customer and assumed the credit risk. The broker was a reseller under the Regulation, and his maximum prices thereunder are the same as any other seller.
Water gas tar and drip oil residue products obtained as a result of the manufacture of water gas from gas enrichment oil, are "petroleum products" and are covered by the Regulation, either as "residual burning, heating or fuel oils," or "distillate burning, heating or fuel oils."
Grade of gasoline. See page 19:8.
Liquefied petroleum gas is a petroleum product under Section 1:1 of Maximum Prioe Regulation lio. 88. however, when sold as a motor fuel at retail establishments, Regulation No.
137 (Petroleum Products Sold at Retail) applies. When it is sold for use other than as
motor fuel at retail establishments, the General Maximum Price Regulation applies.
Petroleum pitch, a solidified waste material which is reprocessed for use as fuel, paving, and other industrial uses, is not covered as a petroleum product under the Regulation, nor as an asphalt or asphalt product under Regulation No. 323 (Asphalt and Asphalt Products). Petroleum pitch is covered by the General Maximum Price Regulation when it is sold to an industrial consumer. When it is sold for use as a solid fuel, without further processing, it is subject to Regulation No. 121 (Miscellaneous Solid Fuels Delivered from Producing Facilities).
Transfer ofrefinery. The "X" refinery is sold to the "Y" refinery. The V refinery manufactures under its own name grades of gasoline similar to the grades of gasoline formerly manufactured by the "X" refinery. The purchaser "Y" refinery must maintain the maximum prices of the seller "X" refinery pursuant to Section 1.7.
Tank wagon and motor transport deliveries. A tank wagon delivery is generally understood Tn the trade as a delivery of pelrbletSTr petroleum products from a bulk station or central storage, and may be for either a portion of the load or the entire load. A motor transport delivery, on the other hand, is commonly understood as a delivery from a primary storage, such as a refinery, and is customarily for the entire load. Where, however, a refiner or terminal operator made small deliveries by motor transport for which he charged the same price as for deliveries by tank wagon, delivery could be considered a tank wagon delivery, depending upon whether or not auoh delivery was regarded by the trade as a tank wagon or transport truck delivery during the base period.
Purchaser of the same class. A company customarily charged during the base period 2/ per gallon leas for oil sold in reconditioned drums than for oil sold in new drums. Due to a shortage of new drums, all oil is now being sold in reconditioned drums only. Under the Regulation the maximum price of the oil for purchasers who formerly bought the oil in new containers must be reduced 2/ per gallon, since they are now purchasers of the same class as those who had been buying oil in reconditioned drums during the base period.
Purchaser of same class - "divided” and "undivided" dealer. Where a seller had the prentice during the base period of granting greater discounts to an "undivided" dealer than to a "divided" dealer, the "undivided" dealers were a different class of purchasers than the "divided dealers." A dealer who sells gasoline under more than one brand name is classified as a "divided" dealer. Where a dealer sells gasoline under a single brand name, even though he purchases more than one brand name gasoline or acquires the gasoline from more than one source, he is classified as an "undivided" dealer.
Demurrage. In sales of petroleum products in returnable containers, demurrage charges may be made only where (1) the purchaser refuses to return the container within a reasonable time, or (2) the purchaser fails to give the seller notice that it is ready to be returned if it is customary for the seller to pick up the container. The demurrage charges do not accrue until after the container is or should be empty under the contract provisions in existence during thè base period, and the buyer has neglected to either return the container or notify the seller that it is available for return.
Drawing oil consisting of 10% mineral oil, 50% fish oil, and 40% lard oil is not an industry lubricating oil within the meaning of the Regulation.
Price Determination.
Increase up to maximum prices. Where less than maximum prices under the Regulation are charged after the effective date of the Regulation, such prices may be subsequently increased to the maximum prices established by the Regulation.
Blending of excepted products. Where maximum prices have been established for a product which is to be blended with a product which is excepted by the Regulation, the maximum price must be determined for the product without regard to the status of the other components .
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Product» of same grade. The maximum prices established by the Regulation are by grades. Kerosene distillate and stove oil of the same or similar gravity are the same grade unless the refiner producing or marketing the two commodities during the base period customarily recognised a grade distinction between them.
Change of shipping point. A seller may change his customary shipping point and charge the purchaser the maximum prices prevailing at the new shipping point even though the change results in a substantial increase in the cost of the product to the purchaser owing to the increased freight cost from the new shipping point.
Published quotations. The price quotations appearing in the publication mentioned in Section 6.1 are the published prices in designated issues of certain enumerated publications and not the subsequently corrected published prices apperaing in later issues of the publications.
Quoted prices in areas surrounding listed cities. The quoted prices set forth in the publication specified in Secbion 6.1 apply not only to the geographical limits of the particular cities for which the quotation is made, but also to such surrounding areas as were customarily included by the trade in the use of such quotation at the time of publication.
Quoted prices. Certain of the prioe quotations appearing in the publication mentioned in Section 6.1appear under the following headings:
"Oklahoma" "Mid-western (Group 3 basis)* "F.o.b. Group 3 (Oklahoma)*
The prices published under these heading are not quoted prices within the meaning of Seotion 5.1, except when the source of the petroleum products is a refinery in Oklahoma and when the sales are actually made f.o.b. a refinery in Oklahoma. When petroleum products are shipped from a refinery out of the State of Oklahoma, these quotations do not realistically represent prices on an f.o.b. shipping point basis. Furthermore, these published prices are not considered as delivered price quotations to the various destination points in the midwestern area in view of the frequent variance both up and down in delivered prices from the published prices under these headings plus full freight from Oklahoma to destination. Such quotations are used by industry merely as a pricing formula except when the products are actually shipped from an Oklahoma refinery. The peculiar nature of these quotations is recognized by trade journals.
Accordingly, where a sale of a petroleum product is not actually made f.o.b. a refinery in Oklahoma, then assuming no other quoted prioe in the publications mentioned is specifically applicable, the maximum price must be determined under Section 5.2, even though the pricing formula used by the parties is "F.O.B. group 3 basis," "F.O.B. Oklahoma basis," or "F.O.B. Tulsa basis."
Contracts are frequently written in which these formulas are used in arriving at a price. The fundamental consideration involved in the use of these formulas is the establishment of laid-down oost to the buyer at a particular destination, and not the maintenance of a uniform pattern of realization at a particular shipping point. Prices arrived at under suoh contracts are ordinarily, therefore, to be considered as destination point or delivered prices, not f.o.b. shipping point prices for the purposes of Section 1340.159(b)(2).
Quoted prioe for unlisted sellers. The maximum prices determined under Section 1340.159(b) (1) apply not only to the 'brands of the oil companies set forth in the listed publications, but also to the brands of any seller whose product at the points for which the quotations are made, is of the same class, kind, type, condition or grade.
Quoted prices - quantities delivered. The maximum prices determined under Seotion 5.1 are the prices quoted in the specified publications, irrespective of the quantities to be delivered, unless the footnotes in the publications expressly state otherwise.
600780 0 - 44 - 21
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Price of small quantity not quoted. Where the maximum price of petroleum products at a particular shipping or clelivery point', for a given classification of customer, at or for a given type of delivery of a small quantity is not quoted in the trade journals referred to in Section 5.1, Section 5.2 will be the basis for determining the applicable maximum price.
Last contract prior to October 15, 1941. Only the price to which the seller was legally entitled under the last contract prior to October 15, 1941, may be used as the basis for determining his maximum price under Section 5.2. A price which was in violation of a contract may not be used for such basis, unless the buyer agreed to the increased price prior to the issuance of the Regulation.
Purchaser of same class. Where a seller had the practice during the base period of charging higher prices to dealers who bought on a split account basis than to those buying on a straight account basis, he had two different classes of purchasers. If a purchaser changes his purchases from a straight account basis to a split account basis, the seller may charge that purchaser the split account price.
Price reduction to class of purchaser. Where the selling price of the product is reduced by ocmpetiton io a sum below the maximum price to one class of purchasers, the discount to another class of purchasers need not be computed on the reduced price. Thus, where the March 1942 price was 21/ a gallon to one class, less 2/ to a second class of purchasers, and competition reduces the 21/ price to 20/, the maximum price to the second class of purchasers remains at 19/.
Discounts on published prices. All reductions made during the base period from the publish-ed prices of petroleum products are discounts and must, therefore, be continued, except competitive price outs. Competitive price cuts are those which were available to all purchasers of the particular class to whioh the published price refers. Thus, a reduction for quantity sales is not a competitive price out but a discount, since it is made only when the purchaser buys a larger quantity than the smallest buyer to whom the published price applies. All reductions are assumed to be discounts, unless the seller can clearly show otherwise.
Where a seller gave a discount to the buyer under a contract in effect during the base period, but has since refused to execute a contract, he must nevertheless continue the discount as long as the buyer is willing to execute a similar contrast, and continues to purchase in the same quantities called for by the contract.
The following are illustrations:
(a) A company allowed reduction of 1/2/ per gallon from the published tank wagon prices for #2 fuel oil to all customers when it started in business in 1934. After two years all new accounts were charged the full published price. During the 1941-42 season 80 percent of its customers paid the full published price, but the remaining 20 percent, the old customers, were given the 1/2/ reduction. The reduction given to all the old customers is a discount because it was not given t'o all purchasers of the class referred to by the published prices.
(b) A company sold to either all or some of its customers at 1/2/ below the published price last October as a means of attracting business. If the company sold to all its customers at 1/2/ below the published price last October, then such 1/2/ reduction is a price cut and not a discount. However, if the company gave the 1/2/ reduction to only some of its customers, the reduction is a discount which must be continued unless the company can show that these sales were very occasional and novel.
(c) A company made a contract with a commercial consumer for the sale of not less than 500,000 or more than 1,000,000 gallons of motor fuel per year, delivery to be made by truck wagon. This contract was made on February 19, 1941, and the price clause provided that the buyer was to pay 3/4/ less per gallon than the published prices for tank car sales. Assuming that the published tank oar price was 1/2/ below the published tank wagon prices, then it is a question of fact as to whether or not the entire reduction of 1-1/4/ below the -hank- wagon quotation was a discount for quantity or was merely the price generally being charged even the smallest tank wagon cammercial consumer at the time the contract was made;
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the burden of proof is on the seller to show that it was the latter.
Discounts during base period - Section 5.2. The requirement in Section 5.1 that discounts granted during October 1-16, 1941, be continued does not apply to a seller whose maximum prices are based on Section 5.2, since the maximum prices determined under this Section are based on the net prioe received on the last sale of a substantial quantity. However, the fact that no discount was given for payment within 10 days to a particular person on the last sale of a substantial quantity does not necessarily mean that no discount need be given to any other class of persons for payment within 10 days. Presumptively, if the seller normally gave a discount for payment within 10 days, but failed to give it on the last sale of a substantial quantity, the person to whom he failed to give the discount is in a different general class from those to whom he gave it since the seller customarily charged them different prices.
Discount offered but not taken - Section 5*2. Where a purchaser was offered a discount for early payment on the "last sale of a substantial quantity" but did not receive the discount because of his failure to make early payment, the sale to him is to a different class of purchaser than a sale to one who was offered and took the discount.
Bottled gas - charge for installing gas tank. A distributor of bottled gas may add to the maximum prices an installation charge for connecting a storage tank to the gas range of the consumer, provided that the price at which gas was sold during the base period did not jn-clude this installation charge.
Containers. Where a seller of petroleum products furnished a container or drum free of charge during the base period, October 1-15, 1941, and now requires the return of the container, the prioe of the product must be reduced to allow for the value of the empty container during the base period if the price of the product plus the value of the container exceeds the maximum price for the petroleum product. If the container is of no value to the purchaser, no downward adjustment of the price of the product is necessary.
Deposit for containers. A reasonable sum designed to induce the purchaser to return the empty container may be required as a deposit. However, the seller may not deduct from the deposit the cost of cleaning the container or transportation charges involved in the return of the container.
Increased container costs. The increased cost of containers may not be added to the maximum prices. Thus, where a seller previously sold a petroleum product in steel drums and now sells the product in wooden barrels, he may not add the increased cost of the wooden barrels to the maximum price.
Gasoline - addition to maximum prioe in certain areas. Thè addition to the maximum prices of gasoline, permitted in the eastern seabord area, may be charged on delivered sales to any point in that area, regardless of the point of shipment. However, if the sale is f.o.b. a shipping point outside such area, the additions may nou be made to the maximum price even though the shipment is destined for a point in that area.
Propane »old as a liquefied petroleum gas. Propane, when sold as a liquefied petroleum gas is subject to Section 6.2; it is not a "dry gas"' subject to Regulation No. 436. When sold at retail at service stations, garages, and stores, the General Maximum Price Regulation applies.
Grade of Gasoline. See page 19s8.
Ration allotments of gasoline. A consumer’s ration allotments of gasoline as of July 1, 1943 control the prioe which he will have to pay for gasoline during the last six months of 1943, see' Section 7.3(c). This is so even though the actual amount of gasoline delivered to him during this period varies from the amount allotted, because of subsequent changes in ration allotments by the Office of Defense Transportation.
Continuance of prioe viistinoticn maintained by reference seller. Where a seller adopts the price of a reference tank~wagoh seller, he mush also adopt the customary price distinctions
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maintained by such reference seller for its various classes of purchasers.
Commissions
Broker's commissions. Where a seller employs a broker to find a buyer, then the seller, being the party in need of the broker's services, must absorb the charges as part of the seller's expense of doing business, and the buyer cannot be charged more than the maximum price. On the other hand, if a buyer needs assistance in finding available oil, it is not an evasion of the Regulation to employ a broker or any one else to render such service and to pay the party so employed. In such case the buyer's acquisition cost is higher than the maximum price, but the buyer is paying not only for oil but for services. Where a broker's participation increases the buyer's acquisition cost over maximum selling price, it must appear that the buyer was in bona fide and legitimate need of the broker's services, that the buyer actually hired the broker, and that the services performed by the broker were intended for and were for the benefit of the buyer. This is true only where formula maximum prices determined under Article V are employed; on sales where dollar-and-cents prices apply, brockerage charges are regulated in Articles II, III and IV of the Regulation.
Classification
Farmers' oooperative. See page 19:2.
Violations and Evasions
Refusal to sell quantity ordered. Where a seller is attempting to treat his customers equit-ably by voluntarily rationing his supply of fuel oil, he may charge the maximum price for the amount actually delivered without regard to the quantity discount which would have been applicable if the full amount ordered had been delivered.
Broker's commissions. See page 19:7.
Definitions
"Contract." The term "contract" is defined in the Regulation as "an agreement, the existence of which is established by written evidence." Thus an oral contract, the existence of which is established by an invoice and a voucher check by which the invoice is paid, is a "contract" under the Regulation.
Records and Reports
Person both wholesaler and retailer. See page 19:9.
Maximum Price Regulation No. 137
PETROLEUM PRODUCTS SOLD AT RETAIL ESTABLISHMENTS
Applicability
Sale at farmers' cooperative store. The sale of petroleum products at a farmers' cooperative store is a sale at a "retail establishment", and therefore, subject to the Regulation.
Bulk plants. Sales by rural bulk plants which deliver motor fuel by tank trucks directly to farmers' storage tanks for use in farm tractors, etc., are not "retail establishments" within the meaning of that term in the Regulation, and therefore, are not subject to the Regulation. Such sales are subject to Regulation No. 88.
Sale of motor fuel oil in barrels at bulk plants. The sale of fuel oil in barrels at the
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seller's bulk plant is not subject to the Regulation as a sale at a "retail establishment" since a bulk plant is a place of central storage from which deliveries are normally made either to service stations, stores, and garages, or to purchasers in larger lots than is usually sold to the consuming public by retail sellers. Such sales are subject to Regulation No. 88.
Liquefied petroleum gas. See page 19:2.
"Renuzit" is a petroleum product within the meaning of Section 7(a), and therefore, is covered by the Regulation.
Price Determination.
Different brands. The maximum prices established by the Regulation are by grades and not by brancis of' mot or""fuel. Therefore, if after the base period, March 1942, the operator changed the brand of gasoline he was selling, but did not change the grade, the maximum price applicable to the first brand determines the maximum prioe of the second brand. Rebranding does not make different grades. However, if different brands of the same grade were sold at different prices during the base period, the lower priced brand may not be sold at the maximum price of the higher priced brand.
Grade of gasoline. The maximum prices established by the Regulation are by grades of motor fuel. OPA has recognized three grades of gasoline: premium, regular, and third grade. The test of each grade is not determined by its particular octane rating. A gasoline comes within a particular grade when, on account of its properties or specifications, the industry customarily recognizes the gasoline to be a particular grade in the area at the time of the sale.
Illegal price during base period. See page 19:9.
Philgas. See page 19:2.
Discounts - trading stamp plan. During the base period, March, 1942, a seller sold motor fuel under a "stamp planw arrangement whereby a customer was entitled to a stamp with the purchase of each gallon of gasoline. The stamps were redeemable only in batches of 100, at 50 cents per batch. A majority of the customers traded on this plan. Under the Regulation the seller may not discontinue the "stamp plan" unless he gives a 50 cent rebate for every 100 gallons of fuel purchased by a "stamp plan" customer. The granting of the rebate during the base period was a quantity discount which must be maintained under Section 7(h) of the Regulation.
Grade of gasoline. OPA has recognized three grades of gasoline: premium, regular, and third grade. A deterioration in the octane contents of gasoline, if it occurs generally in a region and is due to an order of the War Production Board or for similar reasons, does not necessitate a reduction in the maximum price if the industry in that region recognizes the deteriorated gasoline as the same grade. Therefore, a seller may sell gasoline at the maximum prices for premium grade even though the gasoline is inferior to what was formerly regarded as premium grade and is not in accordance with State statutory specifications for premium grade, provided that the industry now recognizee it as premium grade.
Motor fuel - increase of margin - election of maximum price. A service station operator had a margin of 4 cents per gallon on sales to regular customers and 2 cents per gallon to preferred customers. He now wishes to increase his price to his preferred oust oners to yield a 3 cent margin, pursuant to Section 10(b)(1). If the operator chooses to determine his maximum prices for a particular grade of motor fuel under Section 10(b)(1), he is entitled to a 3 cent margin, regardless of any previous discount, and such change of discount is not prohibited by Section 7 (6)(b), entitled "Evasion". If he chooses to determine his maximum prices for the motor fuel under Section 10(a), he is required to maintain his discounts, etc. since they will be reflected in the highest price charged to a class of purchasers. The operator must adopt either one method or the other exclusively as to a particular grade of motor fuel. He may not at the same time establish maximum prices for the same grade of motor fuel for preferred customers under Section 10(b)(1) and for regular customers under Section 10(a).
1918
Classification.
Grade of gasoline. See page 19:8
Violations and Evasions
Illegal price during base period. Temporary Maximum Price Regulation No. 11 covered the sale of motor fuel at service stations in the Eastern seaboard states and Oregon and Washington during the last nine days (March 23-31, 1942) of the base period of Regulation No. 137. If the highest price charged for a particular grade of gasoline during the period March 23-31 was higher than, and therefore, in violation of established prices under the Temporary Regulation, such price may not be used as a basis of the highest price charged during March, 1942 for fixing the maximum prices under Regulation No. 137.
Records and Reports
Person both wholesaler and retailer. A person who is a retailer as well as a wholesaler must, in addition io complying with the record and report requirements of Regulation No. 88, comply with the record and report provisions of Regulation No. 137 as to his retail sales.
Maximum Price Regulation No. 323
ASPHALT AND ASPHALT PRODUCTS
Applicability
Amiesite, a product manufactured by the application of naphtha, lime, and asphalt to a crush-ed stone base, is not an asphalt or asphalt product under the Regulation.
Petroleum pitch. See page 19:3.
Price Determination.
Packaged asphalt sold in carload quantities and delivered in less than carload quantities. A seller sold 150 tons of packaged asphalt equal io about four carloads. Delivery was made by transport truck in loads of ten tons per day. The addition of $2.00 a ton for packaged asphalt for less than carload quantities, see Section 1340.356(c), may not be made to the maximum price if the buyer is able and willing to receive delivery in carload quantities. The fact that the seller cannot deliver in carload quantities does not justify the addition of the $2.00 per ton. However, if the buyer contracts for less than a carload or for more than a carload but requests delivery in installments of less than carload quantities, $2.00 per ton may be added to the maximum price.
Maximum Price Regulation No. 436
CRUDE PETROLEUM, AND PETROLEUM AND NATURAL GAS
Appiicab11ity.
Purchases from affiliated companies. The Regulation is applicable to the purchase of crude petroleum from affiliated companies and petroleum which accrues to royalty owners under leases owned by such affiliates.
Crude distillates or condensates, drip gasoline. The sale of crude distillates or condensates and drip gasoline is subject to the Regulation since these products are "crude petroleum".
Recycled distillate, a liquid resulting from the mechanical separation of gas from crude
19:9
petroleum issuing from the producing horizon, is "crude petroleum" covered by the Regulation.
Propane sold as a liquefied petroleum gas. See page 19:2.
Price Determination.
"Posted purchase price" for royalty owners. A prioe posted solely for the benefit of royalty owners of the company posting prices is not a "posted purchase price" within the meaning of the Regulation, because it is not a price publicly announced or published, but rather it is a price announced to a limited class of sellers.
Assignment of contract - payment of premium. Where crude petroleum is sold under a contract in effect on October 1, 1941, and the purchaser subsequently assigns his rights under the contract, the assignee may not lawfully pay and the seller may not lawfully collect the premium in excess of the established maximum prices. The assignee of such a contract is essentially in the position of a new buyer.
Effect of lesser differentials. Where there was in existence on October 1, 1941, a differ-ential between the price posted at the well and a particular delivery point but certain sales prior to this date were made under a contract declaring lesser differentials, the higher differential may be charged for sales from the same wells at the same delivery point, if that differential is not in excess of the maximum prioe established by this Regulation. However, this does not preclude the establishment of a lesser differential.
Sales from same pool upon cancellation of contract. Where a contract in effect on October 1, 1941, to purchase crude petroleum at the receiving tank at a price in excess of the posted purchase price is cancelled, the producer may not make another contract at the same prioe with a different purchaser. Such a price may be charged only if the new contract is entered into between the same parties.
Sales other than at the well. In the sale of Pennsylvania Grade crude petroleum other than at the well, the seller's price is the specific price for crude petroleum established by Section 10(m) and not the at-the-well prices provided for in Section 11.
Well opened in pool after October 1, 1941. Where on October 1,1941, there was one posted price for crude petroleum produced from a particular pool, and purchases were made on that date of crude petroleum under a contract at a price in excess of the posted purchase price, the maximum price for crude petroleum from a well opened in this pool after October 1, 1941 would be the posted purchase price. The provisions of Section 11 (o) permitting prioes in excess of the posted price to be charged under contracts in effect on October 1, 1941 are limited to production from wells which were producing wells on that date.
Renewal of contracts on month-to-month basis. Where a crude oil purchase contract between two companies provides for payment of a price in excess of the posted price at the well, and an identical contract was in effect on October 1, 1941, the contract calling for the price in effect on October 1, 1941 may be renewed on a month-to-month basis.
Posted purchase price - passage of title at gathering lines. The applicable posted purchase prices for sales of crude petroleum at the receiving tank are applicable even though title passes to the purchaser when the crude enters the gathering lines of the pipe line company.
Crude petroleum - posted purchase price - charge for title examination. A pipe line company proposes to charge the purchaser of crude petroleum a marketing charge of one cent per barrel in connection with sales at points other than the receiving tank. The charge is for service incidential to marketing the crude and includes examining titles, preparing division orders, keeping an account of the oil runs, breaking the runs down as to ownership of the oil run from each lease and making monthly disbursements of funds for the oil run during the preceding month. This marketing charge may be made in addition to receiving the maximum price for the crude from the purchaser provided that an identical charge was made for the identical service on sales at other delivery points on October 1, 1941.
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Maximum Prioe Regulation No. 610.
LUBRICATING OILS, GREASES, AND CERTAIN OTHER PETROLEUM PRODUCTS.
Applicability.
Re-refined motor oil. See page 19»2.
Petroleum ether is included in the Regulation.
Prioe Determination.
Sale of motor lubricating oil in glass containers in lieu of metal containers.
(a) Illustration: A blender is replacing his one-quart metal container with a one-quart glass jug.
In this case, the seller must continue to sell at the maximum price of the motor oil in the one-quart metal container. No increased costs may be added.
(b) Illustration: A blender is replacing his one-quart and five-quart metal containers with a one-gallon glass jug. This blender normally charged a different per unit price to the reseller depending on the size of the container.
Under these circumstances, the oil sold in one-gallon glass jugs must be regarded as the same product for pricing purposes as the oil sold in the former metal containers, because (1) the one-gallon glass jug replaces the five-quart metal container, and therefore, the substitute container varies by not more than approximately 20% from the container being replaced, and (2) the great bulk of the oil is sold at service stations to the customer in bulk, that is, the container is not carried away by the customer with the package. Since, however, the seller normally made a price distinction because of the size and type of the container, resellers who purchase oil in one-gallon glass jugs are in a different class from resellers who purchased oil either one-quart or in five-quart cans. If neither the seller or his competitor made sales in one-gallon glass jugs during the 60 days prior to October 15, 1941, the seller should set a tentative price and advise this office in accordance with Section 16 of this Regulation.
(c) Illustration: A blender is replacing a two-gallon metal container, marketed as a carry-away package, with a one-gallon glass jug. This blender did not market his motor oil except in two-gallon and five gallon containers.
Since the size of the container varies by more than 20% from the size of any container which the seller used in the base period, the motor oil sold in the one-gallon glass jug must be regarded as a new product, and the seller should set a tentative maximum prioe in accordance with Seotion 16 of the Regulation.
(d) Illustration: A blender of lubricating oils filed a request for a tentative maximum price under the same circumstances as in illustration (b), and OPA allowed a prioe on a per unit basis which was higher than that of the one and five-quart metal containers. His distributor wishes to pass on the increase.
The blender's distributors cannot automatically pass the increase along. They, too, must file a tentative maximum price in accordance with Section 16 of the Regulation.
(e) Illustration: A distributor filed a request for a tentative maximum price under the same circumstances as in Illustration(d), and OPA allowed a price on a per unit basis which was higher than that of the one and five-quart metal containers. The dealers wish to pass on the increase. The dealer did not make a distinction in the price to the consumer, whether he emptied a one-quart can or a five-quart oan.
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Since the service station dealer did not draw a prioe distinction to the consumer, whether the oil was emptied from a one-quart or a five-quart container, he way not oharge a different price now for the oil contained in the one-gallon glass jug. In effect, the one and five-quart sales and the one-gallon glass jug sale constitute a bulk sale of the same product. The dealer, therefore, absorbs the increase in prioe to him.
"Blending naphtha" as used in Section 1.1 of Regulation No. 88 are naphthas which are sold for use in blending with gasoline. A naphtha which is sold by the manufacturer for use as a solvent is removing oil, decolorizing clay, and as a diluent to reduce the viscosity of petroleum oils before decolorizing or dewaxing is not a "blending naphtha" and is priced under the Regulation.
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RUBBER
Price Schedule No. 56
RECLAIMED RUBBER
Applicability
General. The Schedule applies to the seller and the purchaser of reclaimed rubber.
Applicable transactions during base period. The maximum prices determinable by "sales dur-ing the base period* are io be ascertained by reference to contracts of sale and spot sales made during the base period, and not by reference to deliveries made during the period against contracts entered into prior to the beginning of the period.
Records and Reports
Producers making no sales. Persons producing reclaimed rubber for their own use and making no sales on the market are not required to file prices.
Prioe Schedule No. 87.
SCRAP RUBBER
Applioability
Transactions completed prior to effective date. A transaction where scrap rubber was delivered io a common carrier before February 5, 1942 for shipment to the purchaser is considered to have been completed at the time the Schedule became effective February 5, 1942, and such sale and delivery is not subject to the maximum prices set forth in the Schedule.
Imported scrap. The Schedule applies to the sale of scrap rubber of foreign origin as well as to domestic scrap rubber.
Sale to dealer for resale. The Schedule does not apply to the sale of scrap rubber to a scrap rubber dealer who does not consume the scrap but buys it for the purpose of reselling.
Sale by one subsidiary to another. The Schedule applies to any sale of scrap rubber to a consumer as defined in the Schedule even though the seller and the consumer may both be wholly-owned subsidiaries of the same company.
Sale to consumers. The sale of scrap rubber hose to a person who cuts out the poor portions of the hose bo make some other products suoh as pads to be used in shoeing horses is a sale to a '’consumer” within the meaning of Section 1315.1261(a)(3).
Synthetic and substitute rubber scrap. The term "rubber" includes all synthetic rubber because of the ordinary usage of the word and because the properties of synthetic rubber are similar to natural rubber. Substitute rubber is not considered "rubber" under the Schedule since it usually differs in physical properties from natural rubber to such an extent that it is not ordinarily thought of as being rubber. Therefore, synthetic rubber scrap sold to consumers is covered by the Regulation, substitute rubber scrap is not.
Discarded rubber items used for shoe soling. Discarded rubber items collected by scrap dealers who split and flatten them out lor sale to shoe manufacturers as soling material, are covered by the Schedule.
Price Determination
General. The Schedule establishes the following delivered maximum price per short ton:
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(a) Sales to mills in listed consuming centers. Maximum prices are established in dollar and cents for designated consuming centers. The maximum prices for listed consuming centers are applicable to the sale of scrap rubber to any consumer for use in a consuming mill located in such center regardless of the place from which the rubber scrap is shipped or where the sale is made. The price for tire parts, peelings and inner tubes listed in Table II are uniform for all consuming centers except Los Angeles, California.
(b) Sales to mills in other than listed consuming centers. Maximum prices on sales to mills in other than the listed centers are the maximum prices of the listed consuming centers to which the freight charge from such mill is lowest.
Demurrage charges arising after the arrival of a oar containing a shipment of scrap rubber are not part of the transportation costs of making delivery to the consumer's mill within the meaning of Section 1315.1263(d). Accordingly, such demurrage charges are not included in the specified maximum prices and may be paid by the consumer in addition to the maximum prices.
Maximum Price Regulation No. 119
ORIGINAL EQUIPMENT, TIRES AND TUBES
Applicability
Molded-on solid industrial truck tires. The Regulation applies to molded-on solid in-dustrial truck tires.
Maximum Price Regulation No. 131
CAMELBACK AND TIRE AND TUBE REPAIR MATERIALS
Price Determination
Royalty charges may be added to the maximum prices for camelback only if they are truly charges for something in addition to the camelback, and are not charges added to evade the maximum prices. The royalties usually involved are charges- for the use of machinery or a process or for supervision. Whether such royalty has been charged in the past will have a bearing on whether it is permissible, or an evasion of the maximum prices.
Records and Reports
Royalties. Where a royalty charge is added to the maximum price, the records of the seller must se£“’forth such charge as a separate item.
Maximum Price Regulation No. 143
WHOLESALE PRICES FOR NEW RUBBER TIRES AND TUBES
Applicability
Solid rubber tires. The sale at wholesale of new solid rubber tires is covered, provided that such tires are for the types of vehicles listed in the Regulation,
2O«2
Maximum Price Regulation No. 149
MECHANICAL RUBBER GOODS
Applicability
Industrial tape made in whole or part of rubber is subject to the Regulation as "tape, ex-cept cable wrapping tape and surgical adhesive tape", see Appendix A. Adhesive discs, adhesive squares, double-faced adhesive tape, pioo tape, adhesive strip and adhesive "thread protectors" are "tape" within the meaning of the Regulation; however, if used for medical or surgical purposes such tape is subject to Maximum Price Regulation No. 188 (Manufacturers' Maximum Prices for Specified Building Materials and Consumers' Goods Other Than Apparel).
Rubber separators. Rubber separators used in electric storage batteries are covered by the Regulation under 'tho heading "all other mechanical rubber goods, except those listed in Appendix A", see Section 1315.35, Appendix B.
Hinges, washers, and bumpers for toilet seats which are made of "reclaimed mud" are covered by the Regulation under the classification "Plumbers' supplies and specialties", see Section 1315.34, Appendix A.
Rubber cord is not classified as rubber covered thread within the meaning of Section 1315.34 and therefore is not covered by the Regulation.
Price Determination
Costs. In determining the maximum price for V-belts, the costs of the manufacturer as of January 5, 1942 cannot be used. Since belting made in whole or in part of rubber is listed in Appendix A, October 1, 1941 costs must be used in determining the maximum price.
Charge for special service. Where a manufacturer of mechanical rubber goods incurs extra expenses such as overtime ?Labor, starting of machinery during a weekend, closedown, etc., in order to accelerate delivery to a customer, he may not add any charge for such special service over and above the maximum price, even though such charge does not exceed the actual cost of the special service.
Goods not the same as those dealt in on the base date. On the base date, October 1, 1941, a manufacturer regularly quoted prices for a mechanical rubber item whose rubber portion was made from natural rubber. The rubber portion of this item is presently manufactured from neoprene. The use of neoprene instead of natural rubber in the manufacture of the item results in the production of a new mechanical rubber goods for which the manufacturer had no regularly quoted price in effect on the base date. Accordingly, the maximum price of the item must be determined under Section 1315.21a(a)(2)(iii).
Definitions
"Mechanical rubber goods." The following are mechanical rubber goods if made in whole or in part of rubber: abrasive wheels, brake lining, chute lining, clutch facings, engraving rubber, horseshoe pads, keg bumpers, leak-proof gasoline tanks, lineman's blankets, offset blankets, oil well specialties, printer's blankets, printing plate material, rubber paint, rubber putty, rubber molds (i.e., molds made of rubber), sheet rubber, slab rubber, stamp rubber, table tops, type and logotype rubber, and windshield wiper blades.
In addition to the products specifically excluded by Appendix C of the Regulation, the following are not "mechanical rubber good": household goods, laboratory supplies, and accessories and repair materials.
"Container sealing compounds", as used in Appendix A of the-Regulation includes latex com-positions, or mixtures of unvulcanized rubber that may be used as sealing containers in commercial food canning or in the packing of inedible products.
20:3
Records and Reports
.Price determining methods on tailor-made articles. Section 1315.28(a)(2) requires the manufacturer of tailor-made articles to report Ike method by which he ascertained his maximum price and the rates used in calculating the gross margin, but does not require a report showing the calculations of actual prices on these articles. If the manufacturer used different methods or rates for different articles, he must report all the methods and rates, and state to what articles these methods and rates were applicable. If the manufacturer used only one method and one rate in calculating his gross margin, he need report only that method and rate, together with a statement that the method and rate was applicable to all his sales on January 5, 1942.
Closed plant in liquidation. A manufacturer who has closed his plant and expects to liqui-date his stock of mechanical rubber goods on hand must file the report required by Section 1315.28 since the sale of these goods by the manufacturer is covered by the Regulation.
Maximum Price Regulation No. 200
RUBBER HEELS, RUBBER HEELS ATTACHED, AND ATTACHING OF RUBBER HEELS
Applicability
Attaching rubber heels to orthopedic shoes. The replacing of regular rubber heels on orthopedic shoes, and the replacing of orthopedic rubber heels on orthopedic shoes is subject to the Regulation. The maximum price for either operation includes all repairs made by the shoe repairman in the process of attaching the rubber heels.
Sales by hardware and five-and-ten oent stores. The Regulation does not apply to the sale of rubber heels by hardware or five-and-ten cent stores; only "rubber heels sold in the shoe repair trade" are covered by the Regulation. Sales by hardware or five-and-ten cent stores are covered by Maximum Price Regulation No. 477.
Price Determination
Attachment of rubber heels for department store’s customers. A department store furnished a shoe repair service, including the attachment of rubber heels. Unknown to the customer, the department store has the rubber heels attached by an independent shoe repair shop. The maximum price the department store may charge its customers for such service is established by the fourth column of Table 1-A, entitled "Maximum prices to consumers for heels attached by shoe repairmen"; if the shoe repair shop charges the maximum prices under the Regulation, the department store may not add any profit or mark-up in passing this price on to its customers.
Maximum Price Regulation No. 220
CERTAIN RUBBER COMMODITIES
Applicab ility
Baby pants. The sale of baby pants is covered by the Regulation.
Price Determination
Change to substitute rubber material. A manufacturer may not use the highest price charged during March 1942 ¿or articles made of rubber as the maximum price for articles now made of a substitute rubber material unless the substitution is only a minor change as defined in the Regulation. The applicable pricing method contained in the Regulation for such articles must be used.
20:4
Taxes
Deduction of Federal excise tax - Amendment No. 3. Amendment No. 3 to Regulation 220, Sec-bion 1315.1553(b), requires in certain cases thededuction of the Federal excise tax which was formerly paid on rubber commodities. The deduction to be made shall be figured on the basis of each entire sale or delivery. The maximum price for the entire sale or delivery shall be calculated to the nearest cent by dropping fractions less than cent and increasing to the nearest cent where the fraction is or more, after the exact amount of tax on the entire order has been deducted. By requiring manufacturers to figure the deduction of the tax in this manner, it becomes immaterial that the amount of the tax on each individual item may be a figure involving fractional cents. Printed price lists which quote prices on each item need not be reprinted in fractional cents. It is sufficient that the list include a written statement to the effect that the amount of the tax should be deducted on sales by the manufacturer.
Maximum Price Regulation No. 300
MAXIMUM MANUFACTURERS’ PRICES FOR RUBBER DRUG SUNDRIES
Applicability
Industrial gloves made of rubber, synthetic rubber, rubberized fabric, or synthetic coated fabric. Regulation No. ¿00 and Regulation No. 301 (Retail and ^olesale Prices for Rubber Drug Sundries) apply to industrial gloves made of rubber, synthetic rubber, rubberized fabric, or synthetic rubber coated fabric.
Doctor of medicine. See page 20:6.
Price Determination
Combination syringe not listed in Appendix B. Where a combination syringe does not fall within any of the groups listed in Appendix B, because it has an additional pipe, the maximum price is determined by adding to the maximum price for the combination syringe listed in the Regulation, the maximum price of the third pipe as determined under Section 1315.1753.
Taxes
Distributors - excise tax. The definition of "manufacturer” in Section 1315.1769(a)(2) in-cludes a "distributor."However, the pricing provisions for manufacturers do not apply to distributors since the Regulation provides specific provisions for distributors,, see Sections 1315.1755A and 1315.1755b. Accordingly, the requirement in Section 1315.1753(d) that manufacturers of rubber drug sundries, other than victory line, deduct the federal excise tax in the manner indicated if on December 1, 1941 the manufacturer did not bill such tax separately does not apply to distributors of such rubber drug sundries.
In determining his maximum prices under Section 1315.1755a, a distributor must de-
termina "the price in effect to him" on December 1, 1941, which means the manufacturer’s selling price on that date inclusive of tax.
Definitions
"Distributor". A chain drug store company purchases rubber drug sundries under the company's private branch from a manufacturer. The sundries are not finished, packaged or assembled. The manufacturer also sells the sundries under its brand name. If the chain store company resells the sundries primarily to wholesalers or resells them primarily other than at retail under its brand, the company is a "distributor" since the sundries sold by the company bear a different brand and therefore are different articles than those sold by the manufacturer under his brand.
20:5
Maximum Price Regulation No. 301
RETAIL AND WHOLESALE PRICES FOR RUBBER DRUG SUNDRIES
Applicability
Doctor of medicine who sells or delivers at retail or wholesale any rubber drug sundries listed in Appendix A which were produced after Jstnuary 31, 1943 is subject to the Regulation; if a doctor of medicine buys or receives from a manufacturer any rubber drug sundries listed in Appendix A of Regulation No. 300 (Maximum Manufacturers’ Prices for Rubber Drug Sundries) which are produced after February 1, 1943, the prices charged him are subject to that Regulation.
Marking and Posting
Marking of retail ceiling price. Under Section 1315.1787(b), mail order houses may mafk their retail celling price M0ur Ceiling $..»•" instead of "Retail Ceiling $ ...", provided the seller only sells at retail.
Maximum Prioe Regulation No. 403
CERTAIN RUBBER COMMODITIES PURCHASED FOR GOVERNMENTAL USE
Applicab ility
Lump sum sale. Where commodities subject to the Regulation are sold together with commodities nob covered by it, for a lump sum, the Regulation is applicable only to those commodities covered by the Regulation. The commodities not covered must be priced separately under the appropriate price regulations.
Maximum Price Regulation No. 435
NEW BICYCLE TIRES AND TUBES
Price Determination
Volume discounts. The volume bonus discounts to jobbers under Appendix A(a)(5) may be based on the seller4s net volume of sales during the year, only if it was his customary practice to so calculate volume bonus discounts during March 1942.
Maximum Prioe Regulation No. 477
SALES OF RUBBER HEELS AND SOLES IN THE SHOE FACTORY AND HOME REPLACEMENT TRADE
Applicability
Soling containing neoprene. The sale of soling material containing neoprene is covered by the Regulation.
20:6
Maximum Price Regulation No. 528
TIRES AND TUBES, RECAPPING AND REPAIRING
Applicability
General. The regulation applies to transactions in the United States, territories and possessions.
Retail prices for new rubber tires and tubes. Appendix A applies to the sale at retail of all rubber tires and tubes for the types of vehicles listed in the Regulations, if such tires and tubes have been used less than 1,000 miles.
Solid rubber tires. The sale at retail of new solid rubber tires is covered, provided suoh tires are for the types of vehicles listed in the Regulation.
New tires with beads removed. New tires from which the beads have been removed are not covered by the Regulation.
New tires and tubes damaged by fire. A rubber tire that has been used less than 1,000 miles is a new tire under the Regulation even though it has been damaged by fire, water, and smoke. If the damaged tire is sold as is at retail, it is covered by Appendix A as a new tire. However, if the damaged tire is recapped, it is covered by Appendix C as a retreaded or recapped tire.
Sale at retail. A sale of new tires to a State Highway Department for the use of that de-partment is a sale at retail and is covered by the Regulation and not by Maximum Price Regulation 143 (Wholesale Prices for New Rubber Tires and Tubes).
Used tractor and farm implement tires. The Regulation covers sales of used tractor and farm Implement hires of the sizes specifically listed in Appendix B. The captions to the tables refer only to the usual use of the listed tire sizes. Used tires and tubes of sizes not specifically listed in Appendix B are covered by the General Maximum Price Regulation.
Used motorcycle tires. Used motorcycle tires are covered by the Regulation if they are of the sizes specifically listed in Appendix B.
Purchase of used tires by a used-car dealer. A used-car dealer who purchases used tires and places them bn used cars which he sells as a unit is subject to the maximum prioes for used tires with respect to such purchases; he is buying used tires in the course of trade and business, since the purchase of used tires is part of his business of selling used cars.
Price Determination
Trade-in allowance. The allowance for a used tire traded in on the purchase of another tire cannot exceed the maximum price established by Appendix B for a used tire.
Passenger car tire to be used on a truck. A used 6-ply passenger oar tire to be mounted on a truck takes the maximum price for a used passenger car tire.
Truck tires. A tire must be a truck tire as recognized by the trade to entitle the seller to the maximum price established for used truck and bus tires. The tire markings will generally indicate whether the tire is a truck tire.
Extra charges for enlarging or putting down used tubes. A seller who enlarges or cuts down a used tube may not sell the tube at a price higher than the maximum price for a used tube of the resulting size. The seller may not make a charge for the enlarging or cutting down of the tube to the extent that the total price charged exceeds the maximum price of the resulting size of the tube.
Basis on which recapping price is determined. The applicable maximum price under Appendix C for recapping is determined by the type of tread applied and not by the kind of carcass to
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which it is applied. Thus, applying a passenger car tread on a truck tire carcass is subject to the maximum price established for applying passenger car types of tread.
Stop-start treads. The maximum price for recapping with stop-start treads apply, regardless of the original tread upon the basic tire carcass. However, the maximum prices for stopstart type of tread apply only when such treads are applied to tires of a listed stop-start size or of a size generally recognized as equivalent to one of the listed stop-start sizes.
Credit sales. If the seller during March 1942 had two prices, one for cash and one for credit sales, so that he was in fact making a demonstrable separate extra charge for the extension of credit, he may continue the charge for the extension of credit provided that the posting requirements are complied with, he bills the extra charge separately, and the extra charge truly reflects the actual difference in the selling price of March 1942 between a cash sale and a credit sale.
Taxes
Excise tax on camelback used in recapping may not be added to the maximum prices for recapping and for recapped tires.
Classification
Ground grip, mud and snow. As used in Appendix C, ground grip type of tread includes the tread design known in the trade as mud and snow.
Violations and Evasions
Tying agreements. It is a violation of the Regulation to agree to sell a tire or tube or recapping or repairing service only upon the condition that the purchaser agree to purchase another commodity or service, regardless of the price placed upon the additional items.
600780 0 - 44 - 22
20:8
SOLID FUELS
Interpretations of General Applicability
Taxes - 1942 Revenue Act. The four cents per net ton transportation tax imposed on coal by the 1942 Revenue Act may be passed on to the ultimate consumer by a seller who paid the tax, provided the tax is stated separately on the invoice. Under the Revenue Act, the term "coal" includes bituminous, anthracite, lignite, coke, and several other miscellaneous solid fuels.
Leasing land and other real property for mining purposes. The leasing of land and other real property for mining purposes has been held not to be subject to OPA price regulations for solid fuels, including the following situations:
A company leases land from which it mines coal and pays the lessor stipulated royalties per ton.
A company, in addition to leasing land from which it mines coal, leases a tipple site, a mule pasturage, and a site on which are located houses for occupancy by miners.
Compensatory Adjustment Regulation No. 1
WARTIME INCREASES IN THE COST OF TRANSPORTING BITUMINOUS COAL
Eligibility for Compensation
Shipment in barges. In determining eligibility for compensatory adjustment, the restriction in Section 1411.1(a) on shipments in cargo boats of 1,000 gross tons or more does not apply to shipments in barges regardless of capacity.
"Normally received" southern bituminous coal. A person who received at his "establishment, southern bituminous coal transhipped from Hampton Roads via tidewater . . . ," for a number of years prior to January 1, 1942, with the exception of a short period in 1941 when such coal was not available to him has "normally received ... southern bituminous coal" prior to January 1, 1942, and is eligible for compensatory adjustment if he otherwise qualifies under Section 1411.1(a).
Where the route specifiea in Section 1411 »1(a) was not used to ship southern bituminous coal to a retail dealer during the year 1941, such coal was not "normally received" over the specified route, and the retail dealer is not eligible for compensatory adjustment even though such rout 9 was customarily used for a number of years. However, a retail dealer who purchased southern bituminous coal in 1941 from other suppliers whose coal was received over that route in 1941 may apply for compensatory adjustment if he otherwise qualifies under the Regulation and now purchases southern bituminous coal from the supplier f.o.b. mine and pays the transportation costs, since he qualifies as a "receiver” of bituminous coal under Section 1411.4(e) (12) •
Receiver of anthracite briquets. A receiver of anthracite briquets, having a solid fuel content made up entirely of Pennsylvania anthracite, is eligible for compensatory adjustments if he otherwise qualifies under Section 1411.5(a).
A dock operator is a "bituminous coal dealer" within the meaning of Section 1411.3(a)(1) and may, therefore, apply for compensatory adjustment under that Section even though he did not normally purchase coal on a free alongside delivery basis. Thus, a dock dealer who normally purchased coal f.o.b. mines or piers and arranged for his own transportation may apply for special adjustment under the Section where he now receives coal by an allrail route.
BITUMINOUS COAL DELIVERED FROM MINE OR PREPARATION PLANT
(The following is a compilation of selected rulings made during the period from May 18, 1942, to January 31, 1943, by the Bituminous Coal Division, in accordance with an arrangement with the Office of Price Administration and previously appeared in Release Nos. 55H9 and 57128 of the United States Department of the Interior, Bituminous Coal Division, Washington, D. C. These rulings are not intended to modify or otherwise affect regulations or orders which have been or may be issued from time to time by the Office of Price Administration.)
Adjustable Pricing Agreements
Agreement to sell at higher than effective maximum prices. When authorized to do so by the OPA, a producer may sell coal at maximum prices and agree to adjust prices in accordance with the disposition of a petition for adjustment or exception which has been filed requesting increases in maximum prices. However, the producer may not sell coal at prices higher than the effective maxima and agree to make a refund if the anticipated increase in maximum prices is not granted.
Adjustment by distributor. Between June 24 and September 21, 1942, a distributor made 12 shipments of mine-run coal to a consumer. The maximum price established for this coal under Regulation No. 120 was $2.20 per ton. On September 25, 1942, a price adjustment was granted increasing the price to $2.25 per ton. Under the provisions of the Order of Adjustment issued, by the Office of Price Administration, the producer had also been permitted to enter into adjustable pricing agreements providing for the delivery of mine-run coal at the $2.20 maximum, subject to a price adjustment in accordance with the final disposition of the pending petition. Since the privilege of entering into adjustable pricing agreements had not been sought by or granted to the distributor, the permission granted does not apply to the resales of such coals by the distributor, and the distributor may not now bill the consumer for the difference between the original maximum and the increased maximum for the shipments made from June to September 21, 1942.
Status of agreements after final order«. A producer filed a petition for adjustment. Pending final disposition of the petition, an order was issued permitting the producer to enter into adjustable pricing agreements. The producer agreed with a steel corporation that the steel corporation should pay the maximum price finally established on shipments made by the producer on or after June 19, 1942. Thereafter, a final order was issued on the petition for adjustment effective on November 14, 1942. The preliminary and final orders should be considered together, and although the final order did not become effective until November 14, 1942, the steel corporation may pay the producer the adjusted maximum price established in the final order on shipments made on or after June 19, 1942.
Applicability
Coal sold over pier. Where coal is consigned by the producer to himself at railroad-owned tidewater coal piers and delivered in carload or cargo lots to a consumer over railroad car dumps without physical handling by the producer, such transaction is considered to be a sale By the producer at or for delivery from a mine or preparation plant operated as an adjunct of a mine and is subject to Regulation No. 120.
Date of sale. Where unsold coal was shipped to the lake front or tidewater prior to May 18, 1942, and sold on or after that date, Regulation No. 120 applies, since the sale or disposition of the coal or the purchase, or receipt thereof, occurred on or after the date upon which this Regulation became effective.
Where coal is sold and shipped by a producer prior to Mey 18, 1942, and dumped into a vessel on May 20, such coal is not subject to Regulation No. 120, since the producer sold or disposed of this coal for delivery from the mine prior to the date upon which this Regulation became' effective.
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Where coal is sold on April 30 at a price above the maximum, but is not shipped until May 19, the transaction is governed by Regulation No, 120, and the maximum price effective for such coal is applicable to the shipment.
Where coal was originally sold at a price of 35 cents per ton above the maximum and was shipped prior to May 18 to a consumer who was unable to take delivery and cm May 18 was resold and reconsigned to a second consumer, the price for such coal is limited to the maximum applicable price since the sale and disposition of the coal to the second purchaser was effective on May 18 and was, therefore, subject to the provisions of Regulation No, 120,
Dock coal, Coal sold at a dock is not sold for delivery from a mine or preparation plant operated as an adjunct of a mine and is, therefore, not within the provisions of Regulation No. 120, but is within the terms of Section 1340.251 of Maximum Price Regulation No. 122.
Sales between affiliated companies. Sales of bituminous coal between affiliated companies are subject to maximum prices,* since this Regulation contains no provision excepting transactions between the affiliated companies, as such, from its requirements.
Stored coal. Where coal was stored at the mine prior to May 18, 1942, and is sold from the mine after May 18, such coal is subject to maximum prices.
Sales of lignite coal from producing facilities are subject to the maximum prices established by Regulation No. 121.
A coal producer-supplier mixes coal produced at its District 1 mine with that purchased from the District 3 mine of another company. The present maximum price for sales of bunker fuel from the District 1 mine is $5>74 per gross ton f.o.b. coal piers at Baltimore; the District 3 coal delivers at Baltimore at a lower price. A ship is in the port waiting for a shipment of bunker coals. Since the coal supplier has apparently not sold any District 3 coal for bunker fuel use at Baltimore heretofore and no such coal has been sold by any other competitive supplier, the maximum price cannot be determined in accordance with Regulation No. 189. Under these circumstances, the producer must apply to the Office of Price Administration (Solid Fuels Branch, Washington, D. C.), under MPR 189, for authorization to sell such coals or a mixture of the District 3 and District 1 coals at a specific maximum price.
A coal company sold no bunker fuel from a certain pier during the base period January 1-15, 1942, although it did make sales during the period immediately preceding and following the base period. It has no competitor selling the same size, kind, and quality of coal under similar circumstances. In such a situation, the coal company may not sell bunker fuel at the price at which it sold the coal during the periods preceding and following the base period without prior approval. Rather, it must file an application for a price with the Office of Price Administration (Solid Fuels Branch, Washington, D. C.)
Addition of demurrage charges. The supplier of bunker fuel may not add any amount, in anticipation of demurrage charges, to maximum prices as determined under Section 1340.313 of Regulation No. 189.
Supplier. A producer sells coal to another company for resale by the latter for bunker fuel purposes. The producer assumes the risks and expenses. involved in delivering the coal for bunker fuel use, paying the railroad freight, dumping and trimming charges, and demurrage charges, if any. The other company has no facilities at tidewater, but usually acts as an export agent or bunker agent. If the second company is acting as a distributor and purchases the coal for resale on its own behalf, the sale by the producer is a sale to another person for delivery by such other person as bunker fuel and is subject to Regulation No. 120. If, however, the second company is acting as sales agent of the producer so that the sale was actually made by the producer directly to the vessel’s owner or operator, the sale is subject to Regulation No. 189.
A registered distributor sold coal for direct use as bunker fuel. The distributor paid the railroad freight and demurrage charges and secured demurrage credits and debits, if any, thereby incurring the risks and duties attributable to the handling of bunker fuel. The
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distributor is, therefore, a supplier of bunker fuel within the meaning of Section 1340.308 (a)(4) of Regulation No. 189, and its sale is governed by Regulation No. 189.
Regulation No. 120 applies to coal sold by the producer to the supplier of bunker fuel; Regulation No. 189 applies to the resale of coal by the supplier for direct use as bunker fuel.
Classifications and Sise Groups
Price of reclassified coal. The maximum price for rail shipments of coals which were reclassified after May 18, 1942, by the Coal Division are determined by reference to the new classifications and not by those effective on April 1, 1942.
Effect of minimum price reclassification. A minimum price reclassification, if made, would not affect the maximum price presently applicable for truck shipments of the particular coal, if the latter is based on the minimum price effective on April 1, 1942.
Computation of Maximum Prices
"Applicable effective minimum prices." when used as a base in determining the maximum applicable minimum prices for truck and railroad fuel shipments, means the lowest price f.o.b. the mine which the purchaser could be legally charged for the parti cellar shipment involved under any of the schedules, regulations, or orders of the Bituminous Coal Division.
General Docket No, 21, Bituminous Coal Act of 1937« To determine the maximum price applidable for truck shipments, the sum designated in the maximum price schedule is added to the minimum price effective for the particular coal on April 1, 1942, and not to the new minimum price established under General Docket No. 21, which became effective at a subsequent date.
Mine minimum price* To determine the maximum price for coals of District No. 12 shipped all-rail, a designated sum is added to the minimum price f.o.b. the mine effective on April 1, 1942, and not to the all-rail delivered price. Therefore, even though the »11—mil del 1 varad price into Iowa was increased three cents per ton on April 27, 1942, to reflect increased freight rates, the designated sum is not to be added to this increased price.
Freezing of prices. Regulation No. 120 does not freeze coal prices as of May 18, 1942, and the maximum prices which became effective on this date are not necessarily the prices to be charged. The price charged for bituminous coal delivered from a mine or preparation plant operated as an adjunct of the mine should be at or below the maximum prescribed and not below the applicable minimum price.
Increase in prices. A producer who previously charged less than the maximum price for his coal may increase his price up to that permitted under Regulation No. 120.
Invoicing at gross price. Coal may be invoiced at the gross price less the freight absorption, provided the net price is not in excess of the applicable maximum price.
Price Instruction and Exception No, 15 (District 17 Minimum Price Schedule). Price Instruction and Exception No. 15 of the District 17 minimum price schedule provides that the base minimum price of coal delivered by truck when sold to a public utility is to be reduced 25 cents per ton. The maximum price for such shipments is computed by adding a designated sum to the base minimum price less the 25 cents.
Railroad weights. Where coal moves in railroad cars from mines, railroad weights should be used in determining the quantity of coal involved in the sale and in invoicing the coal under Regulation No. 120.
Absence of sales during base period. Where the coal supplier sold no bunker fuel during the base period, the supplier may now sell coal for bunker fuel use at the maximum price applicable to that sold by any competitive supplier in the same locality for shipment to the same point and for delivery from similar facilities.
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Effect on Contracts
Contract price higher than maximum price allowed by the regulation. Where a contract entered into prior to the issuance of Regulation No. 120 provides for the sale of coal at a price higher than the established maximum, the price -must be modified so that the price charged and paid is not in excess of the applicable maximum.
Government contracts. Maximum prices apply to government contracts, since Section 1340.201 provides that no "person" shall buy or receive bituminous coal delivered by a producer or distributor at prices higher than the maximum, and Section 1340.208(1) includes the Government within the definition of "person.”
Premium and penalty contracts. The producer may enter into a premium and penalty contract providing that the net price (i.e., after the application of the premiums and penalties) on the coal pursuant to the contract does not exceed the applicable maximum, and providing that no interim settlement shall be made within the life of the contract wherein payment for any part of the coal sold pursuant to the contract exceeds the applicable maximum price for such coal. In other words, the contract may contain a provision which contemplates that excess premiums with respect to shipments made prior to a given periodic adjustment may be taken into account and balanced against accumulated penalties incurred on shipments made in a subsequent period. Regulation No. 120 requires only that payments made at the time of the interim settlement shall not result in a net price above the maximum price. In effect, this Regulation does not prohibit the accumulation of premiums or penalties from one period of adjustment to another during the life of the contract.
Crushed Coal
Sale of mixed coal. A Producer crushes run of mine coal to 1^” x 0 and also produces natural 1^" x 0 screenings. The coals are sometimes mixed; 30 percent of the mine production is nonnally ij” x 0 screenings. The producer inquired whether it could sell the mixture at
straight mine run prices under Amendment No. 22, so long as it sold 30 percent of the mine production at the maximum price applicable to 1^" x 0 screenings. The producer may charge
the maximum price applicable to straight run of mine coals which it crushes to sizes normally sold as screenings, if the crushed sizes are not screened, altered, or modified (exclusive of mechanical cleaning or preparation), and if monthly reports are filed as required in Section 1340.210(a) (6) (IV) of Regulation No. 120. The producer may not sell the 1^" x 0 screenings or such screenings when mixed with crushed coals at the straight run of mine price. Sales of mixtures of run of mine coal crushed to a top size of 1^” and 1^" screenings at the maximum price applicable to run of mine coals would constitute a violation, despite the probability that 30 percent of the total run of mine output of the mine may fall through 1^” screens and despite the fact that the producer may limit such sales so that over any period of time 30 percent of its entire output will be sold as 1^" screenings.
Mine-run coal. Where a producer crushed mine-run coal to 2" x 0, the maximum price applicable to the crushed size applies and not the price applicable to mine-run coal. (This is now subject to the provisions of Amendment 22 to Regulation No. 120.)
Application to sell at mine-run prices. Under subparagraph (8)(ii) of Section 1340.210(a) of Amendment No. 22 to Maximum Price Regulation No. 120, only a producer may file an application for permission to sell crushed coal at straight run-of-mine prices. Accordingly, the Division is unable to accept an application filed by a sales agent unless it is accompanied by a proper authorization signed by a producer.
Sale of crushed coal at mine-run prices - limited applicability. Section 1340.210( a) (8) (i), as revised by Amendment No. 22, applies only where no special prices are established for crushed coal in the maximum price schedules. Since the District 4 schedule establishes specific prices for crushed coals, Section 1340.210(8) (i) does not apply to them. However, under Amendment No. 22, the producer may file an application to obtain higher prices where such prices are necessary to maintain or increase essential production of resultant screening sizes.
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A producer who has no screening facilities may crush straight mine-run coal to a nut and slack size and sell the crushed product at a price not more than the maximum price established for its straight mine-run coals nor less than the minimum price for its nut-slack coals, provided that permission to sell at the mine-run price is necessary to increase essential production of resultant screening sizes and provided that the producer has filed an application under Amendment No, 22 to Regulation No. 120.
The 2^" coal produced in District 15 is usually sold for the same purposes as screenings and is generally known as a screenings size. Amendment No. 22 permits the sale of crushed coals at the maximum price applicable to run-of-mine coals upon the filing of the proper application, where the size to which the coals are crushed is usually sold as screenings by the applicant. A coal company in District 15 may, therefore, crush coal to 24” x 0 and sell it at the maximum price applicable to mine-run coal, if the producer usually sells this size as screenings and if the producer complies with the application and filing requirements of Amendment No. 22 to Regulation No. 120.
Crushed coals may not be sold at prices exceeding those established as maxima for the sizes to which the coals are crushed, except where a higher maxima is necessary to maintain or increase essential production of slack sizes and an application is filed pursuant to Amendment No. 22. When a proper application is filed, lump coals, double-screened coals (including nut and egg coals) and mine-run coals (and coals of same size group as mine-run coals) may be sold at prices which do not exceed the maxjme for the mine-run size group.
High volatile 3", 4", 5", or 6" resultant mine-run coals produced in District 8, which are crushed into slack coal, may not be sold at the maximum price effective for mine-run coals under Amendment No. 22 to Regulation No. 120. Amendment No. 22 permits crushed coals to be sold at the maximum price applicable for mine-run coals where the sizes from which the coals are crushed fall into the same size group as mine-run coals. High volatile 3", 4", 5", and 6” resultant mine-run coals produced in District 8 are included in Size Group 17, whereas mine-run coal falls into Size Group 16.
Where, after crushing its lump coals, a producer rescreens its resultant sizes of coal, it may not sell the crushed coal at the straight mine-run price under Amendment No. 22 to Regulation No. 120, since it does not come within its provisions. The producer may not sell the rescreened crushed coals at a price in excess of the maximum price applicable to the size to which the coal is crushed and rescreened, as provided in Section 1340.210(a) (8) (i).
Coal produced at a certain mine in District 17 which is crushed to slack sizes and mixed or reassembled with natural screened slack may not be sold at straight run-of-mine prices under Amendment No. 22 to Regulation No. 120. Such coal is regarded as modified crushed screenings and may not be sold at a price in excess of that applicable to the screenings size group in which the coal falls.
Distributors
Definition of distributors. Where the seller has coal loaded in cars at the mine and shipped to one of the New York harbor coal piers and there assembled, loaded into barges which are put alongside a public dock or pier, unloaded from the barges into trucks ty stevedores, and delivered to consumers not located at the waters* edge and then trimmed into the coal bins, the consumers purchasing the wholesale quantities and taking deliveiy in carload or cargo lots, and the boatmen, truckers, and stevedores being independent of the seller who pays all of the charges, the seller is within the definition of a distributor as used in Regulation No. 120.
A wholesaler who buys coal at the mine for direct shipment to his customers without physically handling the coal is within the definition of a distributor, and his sales are governed ty Regulation No. 120.
Distributor's discounts. Distributors engaged in the business of marketing bituminous coal are not as such subject to Maximum Price Regulation No. 165.
Physical handling. The question of whether the distributor is physically handling the coal does not determine which maximum price regulation is applicable to the transaction.
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Physical handling does not prevent the party from being a distributor under the provisions of the maximum price regulations.
Distributor* s maximum price. Distributors may not sell or dispose of coal for delivery from a mine or a preparation plant operated as an adjunct of a mine or mines at prices higher than the maximum prices in Regulation No. 120 applicable to the particular coals.
Registration or nonregistration of a distributor under the Bituminous Coal Act has no bearing on maximum prices.
Coal sold "on track" by a "retail dealer" who is within the definition of a distributor as set forth in Section 1340.208 of Regulation No. 120 is subject to Regulation No. 120.
Reports. The distributor is required to file a report under Section 1340.205(b)(2) of Regulation No. 120 only where the distributor himself performs the special service.
Export Coal
Price of coal exported to Canada» Where no specific prices are established for District 2 coals shipped to Canada for vertical or horizontal retort use, such coals are governed by the prices set forth for shipments to all destinations for all uses and by all methods of transportation except as otherwise specifically provided in the District 2 maximum price schedule.
Although the maximum prices established under Regulation No. 120 do not apply to United States bituminous coal resold by Canadian distributors who import such coal from the United States into Canada and resell it for consumption in Canada, the prices do apply to coals sold by producers, their sales agents, or distributors in the United States directly to Canadian distributors or consumers.
Price of coal shipped to foreign destinations. The maximum prices established in Regulation No. 120 apply to coals shipped to destinations within the continental United States, the Territories of Alaska and Hawaii, and the Dominion of Canada and Newfoundland*(the minimum prices established under the Coal Act apply to the continental United States, Canada, and carferxy shipments to the island of Cuba). A producer subject to Regulation No. 120 may not sell coal f.o.b. the mine or preparation plant to a shipper for export at prices higher than those established in Regulation No. 120.
Maximum prices for coals exported to destinations other than those specified in Regulation No. 120 are governed by the Revised Maximum Export Price Regulation.
Coal sold by Canadian distributors. The following relationship exists between a coal organization located in the United States and a Canadian distributor which imports United States bituminous coal and resells such coal for consumption in Canada: The transactions rendered by the Canadian Office are entirely under the supervision of the manager of that office; all purchases and sales of bituminous coal for Canadian shipments are made there and are also invoiced by that office; funds are collected and a complete set of accounts kept there; there is no commission or discount involved between the Toronto and New York Offices, the only reflection on the books of the organization in the United States being a withdrawal of profits accrued in Canada less any taxes due; although the New York Office keeps a memorandum record of the sales and accounts of the Toronto Office and sends reports to the appropriate statistical bureau covering the sales of United States bituminous coal, in all other respects the normal business transactions at the Toronto Office are handled by the office; the New York Office keeps the Toronto Office advised of all orders or changes in the regulations of the Bituminous Coal Division; and the manager of the Toronto Office advises the New York Office that it has made the necessary reports to the Wartime Prices and Trade Board, Coal Division, at Ottawa. The Toronto Office is thus maintained as a separate organization and handles autonomously all usual transactions involved in the resale of United States bituminous coal in Canada. Under these circumstances, the Canadian distributor is within Amendment No. 19 to Regulation No. 120 and its sales in Canada are not governed by Regulation No. 120 (although, of course, sales of coal by the Canadian office as sales agent for American producers are governed by Regulation No. 120).
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Interest
Charges on past-due accounts. Interest on past-due accounts must be charged in accordance with Section VII of the Marketing Rules and Regulations, even though these accounts concern coals sold at maximum prices.
The Canadian Wartime Prices and Trade Board has ruled than the maximum prices in Hanada cannot be increased by the addition of interest or other charges which were not in effect during the base period from September 15-0ctober 31, 1941. However, the provisions of the Marketing Rules and Regulations, issued under the Bituminous Coal Act, are not necessarily inconsistent with the maximum prices established by the Canadian Wartime Prices and Trade Board. Persons subject to the regulations established by the Board may sell coal at less than the maximum prices established by the Board, provided that such prices are not less than the applicable minimum prices established by the Division and thereby provide a margin which will accommodate the payment of interest on overdue accounts.
Mixed Coals
Price of mixed coals. If a size of a mixture of coals does not fall into any size group specifically provided for in the minimum price schedule, the maximum price for such mixture shall not be more than the weighted average of the maximum prices for each of the component sizes or classifications of coal in said mixture on a per net ton basis.
The maximum price for a mixture of modified crushed raw and washed screenings is the weighted average of the maximum prices for both component sizes on a per net ton basis.
Where the operator of a certain District 8 mine prepares stoker coals by mixing x 0 and 1” x coals so that the resulting size falls within the description of a specif1«ally designated size group (Size Group 18) , the mixture takes the maximum price applicable to the particular classification of that size group rather than the weighted average of the maximum prices for each of the component sizes or classifications of coal in the mixture.
Price of coals not mixed. Since the Order in the Division's Docket No. A-H56, dated August 21, 1942, provides that egg coals which are produced in Subdistricts 1-4 of District 4 and which are modified in certain proportions by the addition of other coals may be sold for rail— road fuel use at the effective minimum prices established for the mine-run coals produced in these subdistricts, the maximum railroad fuel prices for such coals should be computed by adding the amount designated in the maximum price schedules for railroad fuel to the lowest possible effective minimum prices (i.e., those established for the mine-run coals for the particular mine when sold for railroad fuel use); such coals are not mixed coals and are not to be priced in accordance with Section 1340.210(a)(5).
Protests - Procedural Regulation No. 1
Extension of relief. A producer who institutes a proceeding seeking certain relief may request that the same relief be given to other producers similarly situated, but the inclusion of such request does not constitute the proceeding a joint one nor make the other producers concerned parties to the action.
Rail Shipments
Nature of shipment. To determine whether a particular transaction constitutes a rail or truck shipment for the purpose of determining the applicable maximum prices, the nature of the shipment is to be considered the same as that under minimum prices.
Where coal is trucked from the mine to the railroad and there loaded into cars for shipment to the purchaser, such shipment is regarded as a rail shipment for the purpose of determining the applicable maximum price. The coal may be sold f.o.b. the mine at the maximum price applicable to rail shipment regardless of whether the producer or another transports the coal to the loading ramp.
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Where the vendee purchases coal from the producer f.o.b. the mine, trucks it from the mine to the rail loading point and ships the coal to its ultimate destination by rail, the shipment constitutes a rail shipment and the rail prices apply. Such sale is a sale from the mine to which Regulation No. 120 applies since it is a shipment from producing facilities rather than a sale at or for delivery from a yard, dock, elevator, or other terminal facility subject to Regulation No. 122.
Railroad Fuel
Coal lost in transit - confiscated coal. Where coal shipped for commercial use is either lost in transit or confiscated by the railroad while in transit, the producer may invoice the railroad up to the original invoice price, even though this price is higher than that applicable to such coal when sold for railroad fuel. However, the producer may not invoice the railroad at less than the minimum price for the coal, determined in accordance with Rule 8 of Section XII of the Marketing Rules and Regulations, amended, under the Bituminous Coal Act of 1937.
Where part of the contents of a car of coal is lost in transit and the balance of the coal is confiscated by the railroad, the shipper may charge the railroad up to the original invoice price.
Where coal originally sold for commercial use is shipped in a bad order car and is confiscated by the railroad, the railroad may be billed at the original invoice price.
Off-line locomotive fuel prices. The maximum price applicable to off-line railroad fuel shipped from a certain mine in District 8 to a particular railroad consumer is determined by adding not more than designated sum per ton to the base minimum price, less the permissive adjustment allowed by the District 8 minimum price schedule.
Excess lading. When a railroad company removes the excess coal from overloaded railroad cars and diverts the tonnage to its own use, the railroad may pay and the shipper may invoice the excess lading at not more than the maximum price for the use to which the coal was originally destined. However, the railroad may not pay, and the shipper may not invoice, the coal at less than the minimum price applicable to railroad fuel. This does not mean that the railroad is required to pay a price in excess of the minimum railroad fuel price; neither does it prevent the railroad from charging, nor the shipper from paying, published tariff charges for removal of such excess lading, notwithstanding that application of such charges may have the effect of reducing the net return to the shipper below the effective minimum price.
Other than railroad locomotive fuel prices* The Chicago Service Line, operating only streetcars, and the elevated systems of Chicago, are not recognized as common carriers by the Interstate Commerce Commission; hence, coals sold to either of these would take the maximum prices for general commercial use.
District No. 1 coal is sold to a switching railroad, which is also a common carrier, at the maximum price for railroad fuel use. The seller wishes to apply the price for commercial use to such sales. In District No. 1, the railroad fuel prices established under Section 1340.212(b)(3) apply to coal sold to common carriers for use as railroad locomotive fuel. The commercial prices established under Section 1340.212(b)(1) apply to coal sold to railroads for other than locomotive fuel use. Accordingly, if the coal is sold to this railroad for locomotive fuel use, the maximum price is computed in accordance with Section 1340.212(b)(3). If the coal is sold for other than locomotive fuel use, the maximum price is determined under Section 1340.212(b)(1).
Reports
Purchaser's reports. An electric and gas utility which purchases coal directly from a producer or a distributor is required to keep records and reports of each purchase for inspection by the Office of Price Administration, in accordance with Section 1340.205(a), as amended August 11, 1942.
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Adequacy of reports. A producer's statement concerning a 10-cent special-service charge for dust proofing coal, which fails to indicate whether the charge for dust proofing was made during the October 1-15, 1941 base period, is not adequate under Section 1340.205(b) of Regulation No. 120.
Crushed coal reports under Amendment No, 22 to Maximum Price Regulation No. 120. A producer who has filed an application under Amendment No. 22 to Maximum Price Regulation No. 120 and has thereby received permission to apply the mine-run maximum to its crushed coals must file a monthly report, even though no coal was crushed and sold at mine-run prices during the particular month covered by a particular report.
Reports of special services not performed during October 1-15, 1941» In May 1942, a producer filed a report of a 10-cent special service charge for dust treating its coal with oil. Thereafter the producer installed a Belknap washer to wash and dust-treat with calcium chloride the small-size coal. It increased the service charge from 10 cents to 20 cents per ton, the price charged by its closest competitor. On October 6, 1942, the producer wrote a letter explaining the charge. However, the letter of October 6 cannot be accepted as a statement under Section 1340.205(b) of Regulation No. 120, inasmuch as the charge of 20 cents was not made for a service rendered during the period October 1-15, 1941. (December 2, 1942) The letter is actually an explanation of the producer's determination of a service charge, on the basis of a competitor's charge, pursuant to Section 2(b) of the General Maximum Price Regulation, since the service is not priced under Maximum Price Regulation No. 120.
Reports of special services by distributors. The distributor may pass on to the consumer the charge added to the maximum price by the producer for the special service of dust-treating coal; the distributor need not file a report of such charge.
If the distributor, acting in its capacity as a distributor, oil-treats coals and sells them at prices in excess of the maximum prices applicable thereto, the distributor must file a report pursuant to Section 1340.205(b)(2) .
Reports of special charges by sales agents. Where the producer filed a report of a special service charge for oil-treating its coals in accordance with Section 1340.205(b)(2), it is not necessary for its sales agent to file such a report with respect to the oil-treated coals it sells as sales agent for this producer.
Tardy filing of report on bunker fuel. Where the coal supplier did not file a report under Maximum Price Regulation No. 189 by August 25, 1942, of all lists, circulars, or schedules of lake vessel bunker fuel prices issued by the supplier prior to May 1, 1942, and in effect during April 15-30, 1942, such data should be filed promptly together with an explanation of the late filing.
Retail Transaction
Applicability of Regulation No. 120 or Regulation No. 122. Where a distributor purchases coal from a truck mine and such coal is delivered by the operator in its own trucks to the retailers and consumers, the distributor neither physically handling the coal nor having facilities for such handling, such transaction is considered as a shipment from the mine and is subject to Regulation No. 120 rather than to Regulation No. 122 which applies to delivery of coal from facilities other than producing facilities.
Where the producer sells coal at the mine both to independent truckers and to retail consumers, and competes with retailers, such sales are governed by Regulation No. 120 and not by Regulation No. 122, since this Regulation governs sales of coal delivered by truck from mine to retail consumers.
Whether Regulation No. 122 or No. 120 applies to a producer's "retail sales" depends upon whether the shipment is made from a "mine or preparation plant operated as an adjunct of a mine" or from a yard. Sales made under the following conditions are governed by Regulation No. 122: A producer operates retail fuel yards at its mine through a retail department which is completely independent of its mine and wholesale functions. At the time the retail department was established, special bins were constructed and the entire retail operation handled on
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a separate basis. The latter department maintains separate sales service, keeps its own books, uses its own stationery, extends credit to institutions and domestic consumers, and purchases and sells other items such as coke, disco, special coal and wood. The retail operation is charged with the depreciation, maintenance, and advertising costs on retail and domestic coals, and with the costs of its personnel, and with such investments as trucks, screens, yard conveyances, chutes, wheelbarrows, shovels, tarpaulins, and water supplies.
Where producers operate two types of business, i.e., the production of and the retailing of coal, and maintain offices and yards through which they sell at retail their own coal and that of other producers, trucking the coal directly from the producing mine to the consumer, the maximum price on the truck coal delivered by them in their own trucks from their own mines is governed by Maximum Price Regulation No. 120; and that purchased from another producer and delivered in the same manner is governed by Regulation No. 122.
( Where a company purchases coal from several code-member producers, washes the coal and then sells the coal as its own through its own sales agents or distributors, the situation is governed by Regulation No. 122, since the sales take place from a facility not operated as an adjunct of a mine.
Where the producer ships coal to the consumer from a storage yard which is not an adjunct of a mine, the transaction is governed by Regulation No. 122.
Where the distributor sells coal over the dock of another company f.o.b. the customer's lighter, such transaction is governed by Regulation No. 122, since it is not a sale from a mine or preparation plant operated as an adjunct of a mine.
Where the distributor uses its own employees to "break out the coal and operate the loading machinery" at its own yard, coal sold from this yard is a sale governed by Regulation No. 122.
Retail dealers or truckers who buy coal at the mine and sell it from a truck to the consumer are subject to Regulation No. 122, since they sell coal by truck or wagon from a point other than a mine or preparation plant operated as an adjunct of a mine.
Where a retail dealer purchases coal at the mine and delivers it directly to his customers in his own trucks, the maximum price which may be charged for such coal is governed by Regulation No. 122 and not Regulation No. 120. Under Regulation No. 122, the price which the retailer may charge depends upon his own retail price during the base period.
Regulation No. 120 and not No. 122 governs the following situation: a company operates a retail office in a city in connection with the operation of two mines which it owns and which are located near the city; the company* s salesmen sell the coal to domestic consumers; there are no retail yards in the city and the coal is delivered by the producer in hired trucks from the mine to the purchaser.
Coal sold from a retail yard which is located approximately six miles from the producer's rail tipple is not sold for delivexy from a mine or preparation plant operated as an adjunct of a mine and is, therefore, not governed by Regulation No. 120, but Regulation No. 122.
The vendor is a dock operator and distributor of coal. It sells coal to a registered distributor for resale to certain consumers. The coal is taken directly from the dock of the vendor by the consumer. The sale from the dock by the distributor is subject to Maximum Price Regulation No. 122 rather than Maximum Price Regulation No. 120.
Sales Agency *
Coal sold by sales agent. Since the sales agent acts merely as agent of the producer for the purpose of selling the producer's coal, a sale by the sales agent is a sale on behalf of the producer, and all the provisions of Regulation No. 120 which govern the sale of coal by a
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producer also apply to the sale of coal by the sales agent. Accordingly, a sales agent may not sell coal at a price above the maximum for which the principal may sell the coal.
Sales agents' commissions. Regulation No. 165 governs the maximum charge which sales agents of bituminous coal may make and may be paid for sales of such coals.
A sales agent sold coal for bunker fuel use at $5.50 per ton f.o.b. vessel, the maximum price under Regulation No. 189. After $2.66 per ton was deducted for freight and dumping charges, the maximum price under Regulation No. 189 resulted in an f.o.b. mine price of $2.84 per ton. The maximum price for such coal under Regulation No. 120 is $2.70 per ton. Under such circumstances, the sales agent must remit to his principal $2.84 per ton less the regular sales agency commission, in accordance with Statement No. 60 issued by the Bituminous Coal Division. He may not remit $2.70 per ton less his commission and keep the additional profit.
A sales agent may determine the maximum price for his services in the sale of coal by reference to the highest percentage rate charged in March 1942 under Amendment No. 2 to Regulation No. 165» This rule applies regardless of whether the same type of coal produced at the same mine was sold to different consumers during March 1942 at different prices.
Commissions on export coal. Under the rules of the Bituminous Coal Division, a code member may not pay more than the permissible commission (12 cents) on certain sales agency transactions without filing a copy of the contract with the Coal Division and applying for permission to pay more than 12 cents. Although coals exported to destinations not named in Regulation No. 120 are not governed by Regulation No. 120, the commissions payable to agents on these transactions are subject, among other things, to the Marketing Rules and Regulation promulgated under the Bituminous Act of 1937.
Smithing Coal
Applicability of maximum prices. The maximum price applicable to smithing coal shipped after May 18, 1942, but before July 27, 1942, the date upon which Amendment No. 11 to Maximum Price Regulation No. 120 became effective, is governed by the prices listed in the schedules in Regulation No. 120, or by Regulation No. 122, depending upon whether the sale was consummated at the mine or a preparation plant which is an adjunct to the mine, or from another point.
Weighted average margin. To determine the maximum price for smithing coal shipped directly from the mine to the purchaser, the distributor may add to the maximum prices established for such coal an amount not in excess of the weighted average margin realized by such distributor on similar sales or deliveries during the period October 1-December 31, 1941J the weighted margin realized on sales during the third quarter of the year in lieu of that for the fourth quarter of the year may not be added to the maximum prices.
The "weighted average margin” which may be added to the maximum price applicable to smithing coals includes a charge for the producer's service of sacking coal, since this charge was included in the purchase and resale price of the coal during the October 1-December 31, 1941, period.
Where the distributor sold no smithing coal during the base period October 1-December 31, 1941, the base period specified by Amendment No. 11 to Regulation No. 120, and consequently has no weighted average margin realization for such period, the distributor may not charge a price higher than the maximum price originally established for such coal in Regulation No. 120.
In computing maximum prices for smithing coals under Amendment No. 11, reference must be made to the weighted average margin in effect during October 1-December 31, 1941, for all kinds and grades of smithing coal, rather than for each kind and grade of coal separately.
A coal company was allowed 25 cents per ton by producers during October 1 to DeOember 31, 1941, for sales of smithing coals. The coal company may now add 25 cents per net ton to the effective maximum smithing coal price f.o.b. the mine, pursuant to Amendment No. 11 of Regulation No. 120, provided that this is not in excess of the wei^ited average margin realized
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on the similar sales of smithing coal during the period October 1 to December 31, 1941, and provided that on or before September .7, 1942, the company had filed a report of the average margin with the Coal Division. If no resales were made during the period or if the average margin for such resales was less than 25 cents, such amount may not be added to the effective maximum smithing coal price f.o.b. mine.
Charge for boxcar loading. A charge may be added to the maximum price applicable to smithing coal in order to cover the costs of labor and material for loading such coal info the box cars; this charge is not to exceed that made during the period October 1-15, 1941.
Special Services
General. When special service charges are not provided for by Regulation No. 120, and the service is not listed in Regulation No. 165, the General Maximum Price Regulation applies.
Such items as advertising, sales expense, adjustments, and the cariying of charge account« are not proper special service items for which a charge may be added to the maximum price applicable to the particular coal. However, charges may be added to the maximum prices for making local or retail deliveries from the mine, such price not to exceed that made for the same service during the period from October 1-15, 1941, inclusive.
Absence of previous charges. Where the producer did not operate its mine during the October 1-15, 1941, period and now wishes to make a charge for services performed for coal sold to its itinerant trade, it may, in accordance with the General Maximum Price Regulation, charge up to the highest price charged for such services during March 1942, if it performed such services during this month. However, the additional charge must reflect only that charge owing to the additional services performed and not that owing to a difference in the type of customer.
Regulation No. 120 does not provide for the addition of special charges for the service of boxcar loading where neither the service nor the charges were made during the base period. Such a situation is governed by Regulation No. 165.
Addition of charges previously undisclosed. Where the producer made a charge' for specially treating coal during the period October 1-15, 1941, but did not indicate on the invoices the amount charged for the treatment, such charge may be added for similar treatment now to the maximum price of the untreated coal regardless of whether those charges were itemized separately on the invoices to the customer or were blanketed in the sales price.
Amount of charge. The amount which may be charged for special services is limited to that amount charged during the October 1-15, 1941, period, even though the producer contends that it could justify a higher service charge.
Addition of charges established under minimum prices—amount of charge. Although Price Exception 3 of the District 14 minimum price schedule establishes a minimum charge for the service of loading coal into boxcars for other than railroad fuel use and although the District 15 minimum price schedule establishes a minimum charge for washing coal, the producer may add to his maximum price for the particular coal the amount actually charged for this service during the period October 1—15, 1941. In invoicing the coal in both instances, the charge should be itemized separately.
Permissible charges by distributors - violations. The producer filed a statement under Section 1340.205(b) , reporting a special service charge of 10 cents per net ton for treating his coal with calcium chloride. The producer sold this coal to a registered distributor at the effective maximum price plus a charge of 5 cents for the calcium chloride treatment. The distributor resold this coal to his consumer at the effective maximum price for the coal plus a charge of 10 cents per ton for the calcium chloride treatment. The distributor’s charge for calcium chloride treatment in excess of the charge made by the producer of the coal, even though it does not exceed the amount shown in the report filed by the producer pursuant to Section 1340.205(b) of Regulation No. 120, would constitute a violation of Regulation No. 120. Although the distributor in selling coal at maximum prices may pass on to his cnnsumsr
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any proper charge above those prices which the producer charged the distributor for the service rendered and for which the producer has filed a statement, the service charge which the distributor may pass on to the consumer is determined by the charge made to him by the producer performing the service.
The distributor may pass on to the consumer the special charge which the producer added to the maximum price for oil treating the coal (assuming that the producer has filed a report of the special service charge under Section 1340.205(b)(2)).
Change in method of treatment. Where a producer oil-treated his coal during the October 1-15, 1941, period and charges 10 cents for the service and finds that it will be necessary in the future to change to a chemical treatment with calcium chloride base, he may add the same sum to his maximum price to cover the charge for the latter service, although he uses a different treatment than that used during the base period.
A producer originally dust-treated its coal with oil and charged 10 cents per ton for this service. After May 1942, the producer altered its treatment by washing the coal and dusttreating it with calcium chloride. The producer increased the special service charge from 10 cents to 20 cents per ton, the price said to be charged by its closest competitor. If the charge of 20 cents represents the sum charged for the same treatment by its closest competitor, the producer may charge up to 20 cents per ton for this special service under Section 2(b) of the General Meodmum Price Regulation.
Charges for delivery in small lots. Where trucked coal is sacked and sold in small lots of 200—500 pounds in bulk, an additional charge may be made for delivery in small lots, or for other special services performed for the benefit of the customer and not performed merely as a matter of convenience to the producer, such charge not to exceed the charge made for the same service during the period October 1-15, 1941.
Charges for sacking coal. A charge for sacking coal may be added to the maximum price applica-' ble to the coal; such charge not to exceed that charged during the October 1-15, 1941, period.
Charges for the same or similar services. Where a producer did not perform a particular service during the October 1-15, 1941, period, but performed the same or a similar service during March 1942, it may now charge the highest price which it charged for the same or similar service during the latter month, in accordance with the General Maximum Price Regulation. However, where the producer did not make a charge for the same or a similar service during March 1942, the producer may now charge the highest price charged for the particular service during March 1942 by the most closely competitive seller of the same class.
Charges for special handling. Where the producer sells coal to itinerants for delivery at the mine to trucks, trailers, and other small conveyances for consumption by the purchasers, the producer may add a charge to the maximum price for the service of handling and labor involved, such charge not to exceed that charged during October 1—15, 1941, period. In computing the charges, it is necessary to distinguish between a charge made for services and a price differential between wholesale and retail sales.
Mine-run coal is placed in chutes at the mine and delivered to locomotive tenders when needed. The producer may add to the price applicable to the coal a special charge covering the cost of labor, maintenance of the equipment used in handling the coal and delivering it to the locomotive tenders; such charge is not to exceed that made in October 1941 for the same service.
A coal company purchases cars of coal from a producer which it resells to consumers. When it does not receive a discount, from the producer, it charges the consumer an additional 10 cents per ton in order to cover the expense of handling the coal. This constitutes a violation. Handling the coal in this manner does not constitute a service for which a charge may be added to the maximum price applicable to the coal tinder the provisions of Section 1340.210(a) (10) of Regulation No. 120.
A coal company ships 15 carloads of coal per year to a consumer so as to fill orders obtained by the company's local dealers. In shipping the coal, the coal company traces the coal to destinations, orders shipments, pays bills, has cars placed on sidings, and takes cars from its own trestles and reconsigns them to the ultimate consumer whenever the latter is short of
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coal. These services do not constitute special services under Section 1340.210(a) (10) of Regulation No. 120 and the coal company may not add a charge to the maximum price for such services when selling coal to its dealer.
Charge for special handling equipment—transportation charges. Where the producer has equipped his mine with conveyors and storage bins, screening devices, and truck scales, and has adopted a merchandise method whereby purchasers are placed in separate sales groups with an established price for each group, the producer may not add a special service charge to the maximum prices merely because he has special handling equipment; however, if the producer makes local retail deliveries where the dominant factor is the service to the consumer, the charges made for such services during the October 1-15, 1941, period may be added to the maximum price.
Charges for stocking coal at mine. The costs of stocking coal at the mine during slack periods and of reloading such coal into trucks when orders are received may not be added to the maximum applicable prices as special charges.
Charge for transportation costs. The phrase "the making of local or retail deliveries from the mine" in Section 1340.210(a) (10) refers to deliveries from the mine to a consumer where the dominant factor is the servicing of the consumer, and the transportation element is an incidental feature. A charge for making such deliveries may be added to the maximum price applicable to the particular coal as a special service and may include such elements of profit as were present in the charges made during the period October 1-15, 1941 (this may or may not exceed the present cost of transportation) •
There is no conflict between Price Instructions (4) and (10) of Section 1340.210(a).
Price Instruction 4 covers deliveries where the transportation element rather than the service element is the dominant factor, e.g., where truck transportation competes with rail or with transportation furnished by other truckers; whereas that portion of Price Instruction 10 reading "the making of local or retail deliveries for the mine," refers to deliveries from the mine to a consumer «here the dominant factor is the service to the consumer, and the transportation element is merely incidental.
A distributor who hires the transportation facilities for delivering coal from the mine or preparation plant may add to the maximum price a sum not in excess of the actual transportation costs incurred, determined in a reasonable manner under Section 1340.210(a)(4). He may also add an extra charge for the service of hiring an independent trucker and for paying him directly, if he made a simi lar charge for the same service during the October 1-15 period under Section 1340.210(a) (10).
Charges for washing and oil-treating coal. An additional charge for washing coal may be added to the maximum price where a charge for this service was made during the October 1-15, 1941, period.
Where Price Exception No. 9 of the District 23 minimum price schedule requires a designated sum to be added to the effective minimum price for washing coals shipped from particular subdistricts to certain market areas, the Regulation No. 120 provides that maximum prices for truck shipments are computed by adding a designated sum to the effective minimum price as of April 1, 1942, the washing charge is not to be added to the maximum price as a special service charge if the washing charge has already been added to the base minimum price before adding the designated sum.
The maximum prices established for coals produced in Subdistrict 3 of District 13 are applicable to raw coals; a special charge may be added for washing and oil-treating the coals, such charge not to exceed that actually charged during October 1-15, 1941, regardless of the costs to the producer for performing the services.
Taxes
Addition of taxes to maximum prices. Where coal is sold at maximum prices, f.o.b. the mine, there may be added to such prices the amount of tax levied by any state or muni, cl pal sales, gross receipt, gross proceeds, or compensating use tax, statute or ordinance, under which the
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tax is measured by gross proceeds or units of sale* if* but only if* (2) such statute or ordinance requires the vendor to state the tax separately from the purchase price paid by the purchaser* consumer* or user on the bill* sales check, or evidence of sale at the time of the transaction; or* (b) such statute or ordinance requires such tax to be separately paid by the purchaser* consumer or user with token or other media of state or municipal tax payment; or (c) such a statute or ordinance permits the vendor to state such tax separately and such tax is* in fact* stated separately. The amount of tax permitted to be added is not to exceed that required to be paid by the purchaser, consumer* or user.
A producer may not increase the maximum price of coal 1-cent, and then allow the 1-cent as an exemption on sales to the Government; e.g.* coal which bears a maximum price of $1.90 per ton may not be sold to the Government at $1.91 per ton* an exemption certificate taken* and the price again reduced to $1.90 per ton,
A sale of coal to the Government at the maximum price applicable thereto is not in violation of this Regulation* even though the code member secures à tax exemption certificate making it unnecessary for him to pay the 1—cent per ton excise tax provided for in Section 3(a) of the Bituminous Coal Act of 1937.
The supplier of bunker fuel may add the tax which he actually pays on transportation charges* if he separately states the transportation tax.
If the producer or distributor separately states the transportation tax from the purchase price* he may collect* in addition to the maximum price* the amount of the tax actually paid by him. This assumes that the transportation charge on which the tax is imposed represents transportation from the railroad facilities at the mine or at the preparation plant* to whichever the maximum price applies* and further, that the producer or distributor may prepay the transportation charge pursuant to the Marketing Rules and Regulations of the Division.
A coal company which hires independent truckers to haul its coal from the mine to purchasers may* under Section 1340.210(a)(4) of Maximum Price Regulation No. 120* add both hauling charges and the transportation tax of 4 cents per ton to the maximum prices applicable to its coal in instances where the charges and the tax are actually paid by the coal company. In no event* however* may the sum added exceed the lowest common carrier rate for transportation between mine and destination* plus the excise tax.
Trade Discounts
General. A purchaser may accept a trade discount of of 1 percent* 10 days from daté of shipment*" provided that the ultimate remittance to the producer is not below the minimum price nor above the maximum price.
Transportation Costs
Actual transportation charges. The actual transportation charges which may be added to the maximum applicable price are those incurred in the handling of the particular shipment involved and not those incurred on shipments made in the past.
Charges for ex-river shipments. The actual cost of transportation may be added to the applicable maximum f.o.b. mine price of coals shipped eqc-river* if the particular transportation costs have been determined in a reasonable manner; in no event are such costs to exceed the lowest common carrier rate for a haul between the same points.
Where the producer ships coal from/the tipple to the river loading dock for free-alongside shipment* the producer may add the transportation charges to the maximum price f.o.b. the mine, and such charges are not to exceed the actual cost thereof* regardless of the fact that in the past the producer charged more than the actual transportation cost in order to equalize its delivered price with that of a competitor. If the coal is being sold at less than the maximum price* the producer may charge more than the cost of transportation* provided that such extra charge does not result in a free-alongside price greater than the total sum of the maximum price plus the actual transportation cost.
600780 0- 44- 23 21i 16
Lowest common carrier rate. Regulation No. 120 does not prescribe any particular method for ascertaining the "lowest common carrier rate for a haul between the same points;” the methods must vary from locality to locality-—tariff s’ of rates published by common rail carriers and the largest common motor carriers are probably available in some localities; if there are no common carrier rates in effect for the haul involved or any part thereof, the cost of transportation governs.
To determine the costs of transportation to be added to the maximum prices where coal is sold on a delivered basis and trucked to District 4 consumers who have no switching or siding facilities, the phrase "lowest common carrier rate for a haul between the same points" means the lowest common motor carrier rate between the points, or the lowest common carrier rate by rail and motor carrier, plus the cost of reloading between the facilities, whichever is the lower.
Tracking charges. Where the producer trucks coal from the mine to the railroad siding for shipment by rail, the shipment is a rail shipment and the producer nay not add the cost of trucking the coal from the mine to the railroad loading point to the maximum f.o.b. mine price established for such coal, since maximum prices are established f.o.b. transportation facilities at the mine or preparation plant from which delivery is made; in the case of rail shipments, the maximum price applies f.o.b. siding.
Where coal is shipped by truck from the mine to a particular destination and is sold on a delivered basis, the producer may add to the maximum price the actual cost for trucking the coal from the mine to the particular destination, including unloading and delivery charges, determined in a reasonable manner, provided the trucking cost does not exceed the lowest common carrier rate from the mine plus reasonable unloading and delivery charges to the same point.
Truckers hired or controlled by the producer increased their delivery charges after October 15, 1942. If the transportation element rather than the service to the consumer is the dominant factor determining the delivery charge, the amount which may be added by the producer to the maximum mine price is governed by Section 1340.210(a)(4) of Regulation No. 120. If the amount added reasonably reflects the actual transportation costs to the producer and does not exceed the lowest common carrier rate for a haul between the same points, the addition of this amount is proper. If, on the other hand, the service to the consumer is the dominant element, the maximum charge is governed by Section 1340.210(a)(1), and the producer may not raise his charge for the service above the amount charged during the base period October 1-15, 1941.
A labor union of coal haulers, on behalf of teamsters and truck drivers of Sheri dan, Wyoming, filed an application for adjustment of hauling charges established pursuant to a contract entered into September 1, 1939, which provides rates to be charged for hauling coal from mines to various zones in Sheridan County, Wyoming. The price per ton on coal so hauled is fixed at the mine pursuant to Maximum Price Regulation No. 120 and to this price is added the hauling charge, which varies according to the zone to which the coal is hauled as provided for in the contract. The haulers own and operate their own trucks. They now seek an increase in the hauling rates established by the contract and inquire whether their application should be filed under Supplementary Regulation No. 15 to the General l&ximum Price Regulation or whether Section 1340.210(a)(4) of Regulation No. 120 applies, in the event that the haulers do not buy or resell coal and are independent of the producers for whom they perform hauling services, an increase in the rates to be charged would appear to be governed by Supplementary Regulation No. 15 to the General Maximum Price Regulation. On the other hand, where coal is delivered from a mine or preparation plant in transportation facilities owned or subject to the control of the producer or a subsidiary or affiliate of the producer. Section 1340.210(a)(4) of Regulation No. 120 contemplates that haulage increases shall be governed by this section rather than by the provisions of Supplementary Regulation No. 15 to the General Maximum Price Regulation.
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Maximum Prioe Regulation Ho. 120
BITUMINOUS COAL DELIVERED FROM MINE OR PREPARATION PLANT
Applicability
Resale by broker of coal purchased from dock operator. Soo page 21:20.
Sale fro» Canadian mine. The sale of bituminous coal from a Canadian mine to a purchaser in the United States is not subject to Regulation No. 120 einoe that Regulation does not establish maximum prices for Canadian ooal. Regulation No. 122 (Solid Fuels Sold and Delivered by Dealers) is not applicable since that Regulation does not cover sales from a mine. The General Maximum Prioe Regulation applies unless it is exempted therefrom by the Maximum Import Prioe Regulation. Section 2, as a purchase of a commodity "to be imported into the continental United States by any person who deals directly with a foreign seller whose place of business is located outside the continental United States or with his selling agent wherever located.“
Price Determination
Distributor's mark-up. Ths maximum prices established by the Regulation apply to distributors M well’ as producers-who make deliveries of bituminous ooal from a mine or preparation plant. Therefore, a distributor's margin may not be added to the maximum prices, unless it is expyss-ly permitted by the Regulation, e.g., smithing ooal. Section 1340.210(a)(11) or has been allowed under Section 1340.210(a)(10)(i).
Coal intended for one purchaser inadvertently delivered to another. Company A purchases ooal for resale and has two customers B and C whose docks are located near each other. Sales to B are delivered so as to come within the provisions of Regulation No. 120. Sales to C are covered by Regulation No. 122. A large load of ooal intended for customer B was inadvertently delivered to customer C and unloaded by the employees of C. The sale to customer C is governed by Regulation No. 120. The A Company meets the definition of "distributor* in that regulation and. therefore, his maximum prices are f.o.b, the mins plus transportation costs.
Maximum Price Regulation No. 121
MISCELLANEOUS SOLID FUELS DELIVERED FROM PRODUCING FACILITIES
Applicability
Petroleum coke, sea coal, retort oarbon. The Regulation applies to the sale of petroleum coke sold by a reseller for use as fuel and sea ooal. Retort oarbon, a by-product of petroleum, is not covered by the Regulation since it is not a miscellaneous solid fuel.
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Wood fuels. Wood fuels are not subject to this Regulation or to Regulation No. 122 (Solid Fuels Delivered from Facilities Other Than Producing Facilities—Dealers) • Wood fuels are covered by the General Maximum Price Regulation.
Price Determination
"Average price" as used in Section 1340.249(b) does not include prices which were specified in a contract entered into prior to December 15, 1941, if no deliveries were made during the average price period, December 15-31, 1941, even though deliveries were made before and after that period. Prices provided for in contracts negotiated during thé period December 15-31, 1941, but under which no deliveries were made during such period, are not to be used in determining the "average price."
"Purchasers of the same general class." The parenthetical examples of "purchasers of the same general class" enumerated in the Regulation are not exclusive of the different classes which may exist for a particular seller. Where during the base period a seller maintained an "f.o.b. ovens" price in one area and an "f.o.b. ovens freight allowed" price in a different area, he had different general classes of purchasers based on geographical location and hence has maximum prices for each class of purchasers.
Freight allowances. The "average price" computed according to Section 1340.249(b) is subject to Section 1340.249(3), so that customary freight allowances must be granted where the average price was computed on an "f.o.b. ovens freight allowed" basis. Where the seller has different classes of purchasers, based on different geographical locations, the differences in costs of transportation incurred in delivery to such classes of purchasers should be reflected in the average delivered price.
"Freight rate absorptions." Section 1340.249(e)(1) requires the seller to deduct from the maximum prices the cash and quantity discounts and other allowances "other than freight rate absorptions" which were made during the base period, December 15-31, 1941. The phrase "other than freight rate absorptions" refers to isolated deductions made by a seller to offset a freight rate advantage enjoyed by a competitor, so as to enable the seller by absorbing the freight differential to deliver on an equal bssis with the competitor. The term does not apply to freight allowances constituting a uniform and integral part of a pricing policy where the purpose was to establish a uniform delivered price on all sales by the same seller, such as the policy of selling f.o.b. ovens freight allowed.
Freight charges - return of unused miscellaneous solid fuels. Where miscellaneous solid fuel was sold during the base period under a contract permitting the customer to return the unused portion and such unused miscellaneous solid fuel was customarily returned by rail during the base period, the seller may not add to the maximum price the additional charges for returning by truck.
Increased freight charges. Where a seller during the base period maintained ntrcnlar prices for rail delivery on the basis "f.o.b. ovens freight allowed," the seller assuming the freight charges, the circular in effect during the base period established a delivered price basis, and, therefore, freight rate increases may not be added to the maximum prices.
Deposit charge. Even though the seller did not require such a deposit during the base period, a seller of bagged miscellaneous solid fuels may require a deposit charge equivalent to the cost of replacement of the bags, or higher than the cost of replacement if the bags are replaced with difficulty because of a shortage of the material of which they are made. Howev&r, an addition may not be made to the maximum prices for the coke to compensate for the increased cost of the bags.
Sales between subsidiary corporations. See page 21:22.
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Maximum Price Regulation No. 122
SOLID FUELS SOLD AND DELIVERED BY DEALERS
Applicability
Delivery by truck from mine. Persons selling solid fuel for delivery from a truck or wagon are subject to Regulation No. 122, except in the case of sales from a mine by the producer or distributor. In the latter case, and if the coal involved is Mtwinone, the sales are subject to Regulation No. 120 (Bituminous Coal Delivered from Mine or Preparation Plant). Sal es by an independent trucker who purchases coal from the mine and sells the sane are subject to Regulation No. 122, even though the sales are made pursuant to contracts entered into before the coal was purchased by the trucker from the mi na,
Dealer having more than one business establishment. Where a dealer has more than one business establishment, the Regulation applies to each such establishment, see Section 1340.251(b).
Question: What is meant by "one business establishment"?
Answer: In answering, these facts are assumed: The dealer operates more than one yard from which deliveries may be made to any point within the market area served by «11 yards, or from which deliveries may be made only to points within the market area served by the particular yard, and the price at which fuel is delivered may or may not be customarily set for all yards at a central control point. Under any combination of these circumstances, each yard is "one business establishment" within the meaning of the phrase used in Section 1340.251(d), and the Regulation applies to each such establishment.
Deliveries outside the normal marketing area. A dealer in solid fuels formerly made deliveries only in the immediate vicinity of the town in which his business is located, but since March 1942 has supplied coal to purchasers in other communities located from five to fifteen miles from such town. The dealer is not a private carrier for hire as to sales beyond his previous normal marketing area; he remains with respect to these sales a seller of solid fuel subject to the Regulation.
Resale by broker of coal purchased from dock operator. A broker purchased eastern-mined coal at Great Lakes docks for the purpose of resale to dealers and Government depots in California, Nevada, and Arizona. The broker did not have a price previously established for the resale of this particular coal. Under these circumstances Regulation No. 122 is applicable and the broker must use his competitor* s price under Rule 2 of Section 1340.254. If, as is likely, the dock operator from whom he purchased the coal is his competitor, the broker would have the same maximum price as the dock operator. Regulation No. 120 (Bituminous Coal Delivered from Mine or Preparation Plant) does not apply since the sale would not be from a mine or preparation plant operated as an adjunct of a mine.
Sale from Canadian mine. See page 21:18.
Price Determination
Sales from more than one yard. Where a dealer sells solid fuel through more than one yard, maximum prices must be determined for each yard irrespective of whether the yards are in the same or different marketing areas.
Contracts to supply householders with yearly requirements of coke. Many companies dealing in coke had the practice of writing yearly contracts in the spring with domestic consumers of coke in order to get deliveries out of their inventory into the bins of householders in the summer, and also in order to obtain commitments with respect to their estimated volume of production for the following year. Such contracts provide for delivery of at least part of the coke at once, and arc written at a price below the current price for spot sales. They provide that all coke taken under the contract may be had at the contract price in effect at the tlm* of the first delivery. During the summer or early fall the writing of such contracts is
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discontinued, and further sales to domestic consumers are made only on a spot basis. These spring contracts were not written during the base period (December 1941) • Instead, sales during this period were made on a spot basis under the circular prices which the sellers had in effect. The domestic purchaser under such spring contracts is not a separate class of purchaser from the class of domestic consumer, for whom the base period spot price was listed by the company. The spring contract price is in the nature of a seasonal discount which is not required to be maintained under the Regulation.
Special price or discount during base period. The fact that a customer was given a "cut priced or extended a special discount during the base period (December 1941) , does not mean that the seller's maximum price to that customer is the cut price or discounted price, if in other respects the sale was similar in quantity, size, kind and quality of fuel, class of purchaser, method and terms of the delivexy to sellers of the same class, since the Regulation does not freeze prices of the seller to each customer.
Discounts to employees. Customary allowances and discounts in effect during the base period, December 1941, must be maintained in sales to the seller's employees.
Increases in cost of insurance. Where the seller invoiced separately the war risk insurance charges during the base period, he may pass on any increases in the cost of the insurance to the purchaser.
Increases in transportation costs. Where a seller* s price during the base period was computed an the basis of an f.o.b. price adjusted for the cost of making delivery to each individual purchaser, the seller may pass on increases in transportation costs. However, this method of computing the base period price must have been objectively shown by the actual sales practice of the seller, as where the seller quoted or billed charges separately or where the delivered price varied in each locality precisely by the difference in costs of transportation to the several localities, or where the delivered price varied precisely by the difference in costs of transportation as between purchasers in the same locality.
If, however, the seller during the base period sold on a delivered basis which does not fall into the foregoing, the seller must absorb increases in transportation costs. Thus, a seller who sold at the same delivered price to all purchasers in a particular sone, or who had different delivered prices in different localities, which did not correspond with the precise changes in transportation costs, must absorb increases in transportation. For example: A company has an established practice of selling coal f.o.b. the dock plus the cost of transporting the coal to each customer. The transportation is done by a third party carrier who looks over the purchaser’s premises, computes the mileage involved, and states his price. The company arranges for the transportation for the purchaser, pays the carrier his charge, and bills and collects from the purchaser a total nonitemized amount, which is the price for the coal and transportation. Thus, each purchaser in a locality and different purchasers in different localities purchase coal at differing prices, i.e., the cost of the coal plus the transportation cost. An Increase in the carrier's rates may be passed to the purchaser by such a company.
Special service charge - arranging for transportation to purchaser. The arrangements made by the seller for the transportation of coal tp the purchaser is a "special service” under Section 1340.252(b)(1), and where this service was performed during the base period without charge, the seller must continue to do so under the Regulation.
Charge for hauling. If the service was rendered during the base period, December 1941, charges for hauling coal by truck or wagon to the bin of the consumer are subject to Regulation No. 122 rather than the General Maximum Price Regulation. However, if the charge for the service was part of the base period delivered price, the service may not be priced separately since the coal was sold delivered to customer's bins.
Adjustment of prices. A person who sells bagged anthracite coal at a grocery store is a "dealer” under the Regulation and may adjust his maximum prices under Section 1340.254(b) (2) • Such person may seek an adjustment if he qualifies under Section 1340.259(a)(1) dealing with price adjustments in areas where a shortage of coal exists.
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Mtwicipality aa purchaser "in the course of trade or business.11 A municipality buying coal for heating purposes or for generating power solely for its departments and institutions is not buying solid fuel "in the course of trade or business" within the meaning of Section 1340.252. However, a dealer selling to the municipality is a seller subject to the Regulation.
Rule 1 and Rule 2«
Question: If a dealer sold fuel during December 1941, must he use Rule 1 or may he use Rule 2 to determine his new maximum price for the same fuel?
Answer: The Regulation states, Section 1340.254(a), that Rule 1 is intended to be used generally, but a dealer if he wishes may calculate his maximum price by Rule H or IB. If he cannot use Rule 1 and does not wish to use Rule 1A or Rule IB, he must use Rule 2. This necessarily means that if a dealer does not wish to use Rule 1A or IB, he must, if he can, use Rule 1. Only when such a dealer cannot use Rule 1 may he use Rule 2. The dealer has no option to use Rule 1 or Rule 2 alternatively.
Question: A dealer during December 1941 purchased run-of-mine bituminous coal from three suppliers at three different prices. Currently, the maximum prices of the same three suppliers are higher in differing amounts than the December 1941 prices. Coal at both times was dumped into one pile and sold as run-of-mine size. May the dealer deduct the highest of all prices paid by him during December 1941 from the highest of all the maximum prices of his suppliers 'for the same fuel and add the difference to his highest price charged in December 1941?
Answer: To obtain his maximum price for a like Bale, he may do so if all the bituminous coal from all suppliers is the "same fuel," as defined in Section 1340»255(a) (3) •
Question: A dealer purchases fuel from his supplier at a price which is less than the supplier* s maximum price. In determining his maximum price under Rule 1, must the dealer refer to his supplier* s maximum price rather than the actual price paid to him?
Answer: The dealer calculates his maximum price by reference to the maximum price of his supplier and not to the actual price paid currently or on a weighted average basis.
Sales between subsidiary corporations. The A Coal Company is a wholly-owned subsidiary corporation of the B Mining Company. A is a retailer with several yards, as well as a wholesaler and distributor, and has one wholly-owned subsidiary, a retail outlet. During December 1941, B sold briquettes to A, and A, acting as distributor, "resold" them to its retail yards. Deliveries of the briquettes were made directly from the producing facility by A to its retail yards. A is now purchasing briquettes from the C Fuel Company, a partially-owned subsidiary of B. As distributor, A considers its maximum resale price for new briquettes to be $5*65 f.o.b. producing facility, under Section 1340.249(c)(2) of Regulation No. 121 (Miscellaneous Solid Fuels Delivered From Producing Facilities). A, however, bills its retail yards at $5*35 per ton, and to this amount its retail yards have added transportation costs and a margin over the delivered cost. C*s maximum price for new briquettes is $4.35 per ton, but it has requested an increase of 53 cents per ton.
Question: Where A sells as a distributor, what regulation is applicable and what is the maximum price?
Answer: A*s sales as a distributor are subject to Regulation No. 121, and the maximum price f.o.b. producing facility is the actual price of the most nearly similar sale. The petition of B for an increase of 53 cents per ton, even if granted, has no effect on A* 8 resale price as a distributor.
Question: In determining the maximum price at its retail yards, is A its own supplier or is C the supplier?
Answer: (a) The supplier is not the same person as the distributor in this case insofar as A, a single corporate entity, buys and "resells" the new briquettes to its retail yards. The supplier is the producer of the briquettes, and no actual sale or transfer of briquettes by A, acting as distributor, to A, acting as retailer, takes place. C, therefore, is the supplier.
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(b) If the new briquettes are the "same fuel," within the meaning of Section 1340.255 (a)(3) » as the old briquettes, Rule 1 must be applied to sales by all of A’s retail yards.
(c) If the two briquettes are not the same but are similar, Rule 3 must be applied to sales by all of A’s retail yards. A’s purchase cost for the new briquettes is the price paid by it to the producer, but the price paid by A’s subsidiary retail yard is the subsidiary’s purchase cost.
(d) If sameness or similarity cannot be determined with respect to the old and new briquettes, Rule 4 must be used, under which OPA may establish maximum prices for sales from all of A’s yards.
Dealer’s screenings and increases in supplier’s maximum prices. A dealer sells his own screenings of egg, stove, nut, and smaller size fuel. In determining the maximum prices for his screenings under Rule 1, he may not add any increase in his supplier* s maximum prices for the egg, stove, and nut fuel. Under Rule 1 only increases in supplier’s maximum prices for the "same fuel" may be added. The dealer’s anthracite screenings are not the "same fuel" as egg, stove, or nut, Section 1340.255(a) (3) •
Rule 1 - adding difference in cost between slack and mine run caking coals to price of local Sub-bituminous. A dealer purchased coking slack in December 1941 at slack price f.o.b. mine and mixed the slack with a local sub-bituminous coal for efficient firing. In selling the sub-bituminous coal the dealer is now compelled to buy mine run coking coal, crushed to slack size, for which he pays the mine run price permitted by Amendment No. 22 to Regulation No. 120 (Bituminous Coal Delivered from Mine or Preparation Plant) • The dealer may add to his December 1941 selling price the difference between his supplier* s present maximum price for mine run coking coal crushed to slack size and the highest price charged by his supplier during December 1941 for the coking slack, provided that the crushed mine run and the coking slack are the "same fuel" as defined in Section 1340.255(a)(3)«
Rule 2 - reflecting price adjustments made by competitor. A seller who determined his maximum prices under Rule 2 by taking "the maximum price of the most closely competitive dealer of the same class for a like sale,” Section 1340.254(b) , may increase his maximm price pursuant to price adjustments made by his competitor.
When the competitor has made an addition for increased freight rate, such seller may also do so, provided that he is using the competitor’s posted maximum prices.
Expiration of emergency freight rates. A dealer based his prices for solid fuel during the base period cm emergency freight rates which have since expired. In some instances the emergency rate was higher and in other cases it was lower than the present rate. The general rule under the Regulation is that fluctuations in transportation costs do not authorize or require corresponding changes in maximum prices. Thus, a dealer whose maximum price can be established by Rule 1 need not reduce his maximum price to reflect decreases in freight rates, nor may he increase his maximum prices to reflect any increases in freight rates. Rule 3 of the Regulation cannot be used in any case in which a dealer can use Rule 1 or Rule 2. Neither Rule 1 r or Rule 2 permit increases in maximum prices based solely on increases in transportation rates to the dealer. Rule 3 can be used only in a case in which a dealer did not sell the same solid fuel in December 1941 and cannot determine a maximum price by using the maximum price of his most closely competitive dealer of the same class for a like sale.
Transfer of business. A dealer proposes to close out his business and purchase the business of another dealer. He will operate only at the purchased establishment, which is separate from any other establishment previously owned or operated by him. His maximum prices are those to which his transferor was, or would have been, subject to if no such sale or transfer had taken place, Section 1340.251(c).
Special sales - dealers previously granted adjustments - "current delivered cost.** The phrase "current delivered cost" in paragraph (2) of Section 1340.256(d) entitled "Dealers previously granted adjustments of maximum prices" refers to coal received during 1943« Paragraph (2) does not affect the dealer’s maximum prices for coal received in 1942.
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Public competitive bidding. A sale "under contract awarded the dealer in public competitive bidding" under Section 1340.256(b) means a sale under a contract awarded a dealer after the submission of bids in which all dealers who are in a position and desire to bid may do so, and where competitive bidding could reasonably be expected. The competitive bidding may be solicited through telephone as well as public advertisement.
Coal intended for one purchaser inadvertently delivered to another. See page 21:18.
Transportation charges. A seller computed his maximum price during the base period December 1941 on an f.o.b. dock basis. Deliveries from the dock were made by truck for which the seller customarily charged the than prevailing common carrier rate for the same haul. The maximum charges for deliveries by truck must now be based on the common carrier rate for the same haul in December 1941 and not on the present common carrier rate, since under Section 1340.252(b) a delivery service charge may not be increased over that charged by the seller in December 1941 for the same service. Where the seller makes deliveries in his trucks to a point other than that to which he made deliveries during the base period, the delivery service charge must be based on the December 1941 common carrier rate to that point for the same hauls.
Rule 1 - increased freight rate. Under Rule 1, Section 1340.254(b) , a retail dealer may add to his highest December 1941 price certain increases in his "supplier’s maximum price." An increase in the cost of transporting the coal from the supplier1 s mine to the retailer’s yard is not an increase in the supplier's price for coal at the mine and, therefore, may not be added.
Change in nature of operations.
Question: A company desires to change the nature of its operations from that of trucker to equipped dealer. May the company increase its maximum prices to cover increased expenses of storage, handling, weighing, etc.?
Answer: No. A change in the nature of operations from that of trucker to equipped dealer does not permit a change in maximum prices. The company must determine its maximum prices under Rule 1, Section 1340.254«
Taxes
Transportation tax - "the amount of tax paid by any of his prior suppliers." Where the increased transportation tax effective December 1, 1942, was paid by the dealer's supplier and passed on to the dealer, he may in turn pass on this increase to his purchasers of such coal, Section 1340.265. The dealer may identify the coal on which the tax increase may be passed on to his purchasers by: (a) identifying the tonnage upon which the tax increase was paid and passed on to him, or (b) passing on the tax increase to his purchasers after he has delivered an amount equal to his inventory as of November 30, 1942, the day preceding the effective date of the Amendment which first permitted the tax increase to be passed on by the dealer.
Invoices - posted prices - separately stating Federal transportation tax« See page 21:25.
Posted prices. See page 21:25.
Definitions
"Cocktail coal" which is a mixture of freshly mined coal and reclaimed coal is not the "same fuel" or the "same solid fuel" as reclaimed coal.
"Supplier who is thé same person as the dealer." The term "supplier who is the same person as the dealer" in Section 1340.254(b)(2) means any person or form of business enterprise which performs the functions of supplying itself with the fuel it deals in. An "affiliated supplier" may or may not be the same person as the dealer. The phrase does not apply to corporate suppliers with wholly-owned subsidiaries. Thus, a wholly-owned subsidiary which receives its fuel from a parent corporation is not a "supplier who is the same person as the dealer."
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Records and Reports
Reports to War Price and Rationing Boards* Retail dealers in solid fuels are required to flie reports of their maximum prices with the appropriate War Price and Rationing Board.
InYQiceg - posted prices - separately stating Federal transportation tax- a rubber stamp notation on a sales invoice that thé “above price includes Federal Transportation T»x nf per ton* is sufficient as a separate statement of such tax within Section 1340.265(b).
Posted prices. A dealer may not include the Federal transportation tax in his prices which are posted in his place of business. The ruling is the same as to his maximum prices filed with his War Price and Rationing Board and advertised prices appearing in newspapers or other mediums, even though he has a notiation that the prices include the tax.
The distinction between notations on invoices and on posted or advertised prices is that invoices show the "price charged“ while the prices which are posted or filed with the Rationing Board and advertised prices are "maximum prices.* Since the transportation tax is an addition to the maximum price, it is not part of the maximum price and wist be stated separately therefrom. A rubber stamp notation on the invoice is also permitted because the billing machines used ty many dealers are not adaptable to setting forth both the price charged and the transportation tax.
21,26.
REGULATIONS OF GENERAL APPLICABILITY
Maximum Price Regulation No. 188
MANUFACTURERS’ MAXIMUM PRICES FOR SPECIFIED BUILDING MATERIALS AND CONSUMERS' GOODS OTHER THAN APPAREL
Applicability
Scope of the Regulation. The scope of the Regulation is limited and defined by the list of broad commodity classification headings used in the Appendix. The lists of parti mil ar commodities under the headings are merely illustrative, and indicate only some of the commodities which are included under the appropriate heading.
Offer to sell prior, to end of waiting period« The Regulation, under certain circumstances, prohibits a person from selling or offering to sell a commodity covered by the Regulation prior to the expiration of the 15-day waiting period after filing of a tentative price with the OPA. Section 1499.151 of the Regulation incorporates by reference the definition of "sell" found in Section 20(v) of the General Maximum Price Regulation, which states that nothing in the Regulation shall be construed to prohibit the making of a contract to sell at a price not to exceed the maximum price at the time of delivery. Accordingly, the prohibition against selling prior to the end of the waiting period does not operate to prevent a person, prior to that time, from informally divulging his tentative price to a prospective pirnhaaer, and thereafter selling the commodity pursuant to a contract which names no price, but which provides that the price is "not to exceed the maximum price at the time.of delivery."
Sale of mattress. See page 1:4
Cotton floor coverings. Cotton floor coverings manufactured on the same type of looms as ordinarily used for fabricating wool floor coverings, and simulating the appearance of wool floor coverings, are "comparable articles" as defined in Section 1499.157(d), and therefore subject to the Regulation. They have the same general use and construction, even though different materials are used.
Copper water light. A copper water light, a chemical preparation with a flare placed in a copper cylinder attached to a life preserver, is subject to the Regulation as "life saving equipment", see Appendix A(b)(9).
Container for rouge. A one-eighth ounce container made of plastic and sold to cosmetic manufacturers as a container for rouge is subject to the Regulation as a "notion". Appendix A(b)(10)(ii).
Wire stretchers. Wire stretchers are "farm and garden tools and supplies* and therefore covered at the manufacturer level by the Regulation.
Glass parts of lighting fixture for airports, airways and seadromes. See page 16:19.
Arc lamps and glass reflectors for arc lamps. See page 16:20.
Coat hangers. See page 18:10,
Manual valves. See page 16:21.
"Industrial boilers." See page 16:17.
Government subcontracts. "Sales to the United States Government", as used in the Regulation, does not include sales under subcontracts to government contractors. Accordingly the special
22:1
provisions for sales to the United States Government are not applicable to contracts between a ma-fetres« manufacturer and a hotel company even though the contract bears a priority number and an end use symbol from the United States army or navy.
Common brick. The term "structural clay products^ brick and hollow tile (glazed and unglazed)"; Appendix 4(a)(2), includes what is uniformly known in the trade as "common brick".
Burial casket interiors. Burial casket interiors, i.e., upholstery for caskets, which are finished products sold io casket manufacturers who insert them into the box containers, are subject to the Regulation as "funeral supplies and appurtenances”. Appendix A(b)(2).
Leather wallets. Leather wallets are covered by the Regulation at the manufacturers' level as ^personal and household accessories: (ii) notions," Appendix A(b)(10).
Lighter fluid. Lighter fluid is covered by the Regulation at the manufacturers' level as "Smokers* articles”, Appendix A(b)(10)(xviii).
Mattress covers. Mattress covers are not subject to Regulation No. 188; the General Maximum Rrioe Regulation applies.
"United States Government or any agency thereof". A sale to a company operating under a Defense Plant Corporation contract, where the contract is made on behalf of the United States Maritime Commission, is not a sale to the "United States Government or any agency thereof", within the meaning of Section 1499.163(a)(5).
Cigar and cigarette holders made of hard or balata rubber. Cigar and cigarette holders made of hard or balata rubber are covered by the Regulation as "smokers' articles • . cigarette and cigar holders”, Appendix A(b)(10)(xviii); even though made of rubber they are not covered by Regulation No. 149 (Mechanical Rubber Goods) or Regulation No. 22O(Certain Rubber Commodities).
Crutches. Crutches are covered by the Regulation as "health supplies, equipment" etc., Ap-pendix A(b)(17).
Dehydrator units. Dehydrator units are installed in various machinery to remove moisture from oil and air, an? are sold by the manufacturers of refrigeration equipment and compressors. The unit is also used in other types of equipment, including communication and signaling apparatus and Radio transmitting and receiving apparatus. The dehydrator unit is a specialty product sub-ject to the Regulation as "commercial refrigeration and summer air conditioning,” Appendix A(a)(l)(vi).
Domestic concrete incinerators. Domestic concrete incinerators are subject to the Regulation as "masonry and construction materials: concrete products: cast shapes and cast stone", Appendix A(a)(2).
Fireplace grates. Order No. 104 under Section 1499.158, effective December 24, 1942, covering all fireplace grates made of welded steel or iron scrap which weigh 26 to 30 pounds inclusive, does not apply to grates which manufacturers had already delivered to that date. Fireplace grates which are not within the terms of any orders issued under Section 1499.158 of Regulation No. 188 are subject to Regulation No. 210 (Retail and Wholesale Prices for Fall and Winter Seasonal Ccnnnodities) as "andirons and fireplace equipment”, .Appendix A(h)(8).
Manufacturers* sales of cast iron fireplace grates. See page 13:26*
Lime rock and residue. Lime rock used for sugar refining and line rock residue (small pieces of lime rock which drop through the screen) are subject to the Regulation as ”lime, chemical”, Appendix A(a)(2).
"Notions", Appendix A(b)(10)(ii), includes billfolds^ key cases, card cases, identification card holders, and wallets made of leather, leatherette, fabricoid, and paper products.
Poker chips. Poker chips are not "games" within the meaning of the Regulation, Appendix A(b)(18); the General Maximum Price Regulation applies.
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Grave monuments and markers. The Regulation covers sales by manufacturers of granite or mar-ble grave monuments or markers under the classification "dimension stone," Appendix 1(a)(2) •
Fine pulverised dried sand. The sale of fine pulverized dried sand used as filler in fertilizer mixture is subject to the Regulation as "sand and gravel," Appendix A(2) .
Grave vaults. Grave vaults are specifically covered by the Regulation, and the maximum price includes the cost of placing the vault in the grave. The fact that some Installation services are rendered in connection with such sales does not make Regulation No. 251 applicable.
Building materials sold on an installed basis. Building materials which are sold on an installed basis are subject to Regulation No. 251, even though they are items specifically listed in Appendix A of Regulation No. 188 (Manufacturers* Maximum Prices for Specified Building Materials and Consumers* Goods Other Than Apparel).
Special industrial paints. The list of articles under the description "oil paints and varnishes" in Appendix A, Section 1499*166, does not include any form of industrial f1 n1 ahes and, therefore, special industrial paints are not covered by the Regulation; the General Maximum Price Regulation applies.
Rock slag. Rock slag, used in the construction of roads, is covered by the Regulation, Section 1499.167, Appendix B. Antimony slag, however, is exempt from price control, Section 2.9(b)(4) of Revised Supplementary Regulation No. 1 to the General Maximum Price Regulation.
Price DetermliPatlnn
Price adjustment between affiliated corporations. The Regulation controls, the prices charged by a manufacturing corporation to a sales corporation even though the two corporations are under coumcn ownership.
Change from foreign to domestic silver. A finished product made from domestic silver is the "same article" as a product which differs from it only in that the latter is made from foreign silver. Accordingly, where the article made from foreign silver was finally priced before August 1, 1942, the article made from domestic silver is likewise considered for the purpose of Section 1499.153 as being finally priced before August 1, 1942. A manufacturer may not, therefore, make the additions permitted in Section 1499.156 of the Regulation (i.e., additions for increased unit costs where the article to be priced differs from an article already priced "only because of changes necessitated by shortage of materials or parts used in the original article"), since that section is applicable only, if the "same article" was not finally priced before August 1, 1942.
Pre-season discount. A manufacturer in figuring his maximum price under Section 1499.153 (goods finally priced before August 1, 1942) must continue to allow all discounts which he customarily allowed in March 1942, unless such discounts were " special deals" offered for not more than 123 days. This is true even though March was an out-of-season period and the discount was a pre-season allowance.
Discontinuance of customary supply of fixtures with roofing asphalt. See page 2s 2.
Printer's kit. In determining the maximum price for a master printer's kit, the manufacturer considers the entire kit as one "article."
Manufacturer's excise taxes - photographic supplies. Under the Revalue Act of 1941 cameras, lenses, unexposed photographic film (excluding x-ray), photographic plates, sensitized paper, and certain other photographic apparatus and equipment were subject to a 10 per cent manufacturers' excise tax. This tax has been increased to 15 per cent on film« and 25 per cent on cameras and photographic apparatus in the Revenue Act of 1942. Section 1499.7 of the General Maximum Price Regulation, which is incorporated by reference into Regulation No. 188, governs the tax increase.
Question* During March 1942 the manufacturer invoiced the 1*11x1 or cameras at
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a prioe which indiuded the excise tax in effect at that time. The amount of the tax was not separately stated and collected. May he pass on the tax increase?
Answer: Yes, provided that he invoices the tax increase as a separate item.
Question: The manufacturer did not separately state the tax in March 1942. If he subtracts the amount of the original tax from his March 1942 prioe, may he separately state and collect a's one item the full amount of the increased tax?
Answer: No. He must separately state the tax increase in order to collect it in addition to his March 1942 prioe.
Question: During March 1942 the manufacturer invoiced the 10 percent excise tax as a separate item. May he now separately state and collect as one item the full amount of the increased tax?
Answer: Yes. He is not required to separately state the tax increase, but may lump it with the original tax and collect the entire increased tax as one item.
Some of the manufacturer's wholesalers and retailers may not have separately stated the original tax in March 1942. Such a wholesaler or retailer would have to separately state the tax increase in order to collect it in addition to his March 1942 price. Where the wholesalers and retailers were not separately stating the original tax in March 1942, the manufacturer should advise those purchasers that they can only pass on the amount of the tax increase which is in addition to their maximum prices, and that the amount of the tax increase must be separately stated.
Minor changes in material, design, or construction. See page 22:5.
Substitution of materials. See page 22:5.
Change from delivered pricing to f.o.b. pricing. A lime company sold its lime during the base period ah a delivered price of $11.80 per ton which included an $ .80 trucking charge. The company pricing under Section 1499.153(a) now desires to change its price to an $11.00 per ton f.o.b. plant price, and apply the established railroad freight hauling rate of $3.00 per ton. The company may not adjust its truck hauling charges to that of railroad freight haul ing charges. If the lime company desires to change its maximum delivered price to an f.o.b. price it must reducq its delivered maximum price by the exact amount of the purchaser's freight cost.
Anticipation deductions. A seller who customarily allowed a deduction during the base period to customers who paid their invoices before the due date may not now discontinue such deduction, even though the invoices rendered to the customers did not refer to any anticipation privilege, see Section 1499.159(a).
Classification
"Industrial boilers". See page 16:17.
Common brick. See page 22:2.
Notions. See page 22:2.
Definitions
"Marine lights and equipment". "Marine lights" includes any light designed and manufactured for use on a ship or boat; "marine light equipment" includes all appurtenances necessary for the installation of marine lights, but does not include cable or other equipment which could be used as well for the installation of other than marine lights.
22:4
"United State* Government or any agency thereof." See page 22:2.
Minor changes in material» design, or construction. The substitution of a wooden lock for a metal lock In chairs is a "minor change" within the meaning of Section 1499.155.
Substitution of materials. The substitution of California pine plywood for Oregon pine ply-wood in the manufacture of wardrobes, chairs, tables, bunk beds and bookcases is a "minor change" within the meaning of Section 1499.155 of the Regulation.
22:5
Maxiunn Brice Regulation 10. 104
SPECIAL SALES OP INDUSTRIAL MATERIAIS
Applicability
Salo» by Alien Property Cuafrodian. Sales by the Alien Property Custodian of foreign owned property subject to Priorities Regulation No. 13 are governed as to maximum prioe by Regulation No. 204 since it is a sale of material "not in a form normally sold by the seller in the ordinary course of his business«"
Sales by the War Department. Salos by the war Department of materials subject to Priorities Regulation No. 13 are governed as to maximum prices by Regulation Io. 204 since it is a sale of materials "not in a form normally sold by the seller in the ordinary course of his business." Where the War Departnent acquired the material pursuant to a contract which ye th» War Department title to any goods already manufactured in the event the contract was cancelled» the manufacturer is the War Department's "supplier" for the purpose of determining smxlmma prices.
Salo of copper wire hy one utility company to another. The sale of copper wire by one utility company to another utility company is governed by ilm Regulation.
Usedor discarded materials. The Regulation is not applicable to materials which have boon withdrawn from uae or discarded by the seller, although subject to Priorities Regulation Io. 13, since the pricing formulae of Regulation Io. 204 aro not suitable for establishing a price for material, which the seller bought now and is new disposing of as used or reusable Material.
"Ordinary course of business" - acoc—odation sales. Some of the factors which should bo oon-sidered to determine when a sale is not in the *ordliy In two difforcst department», the cosi and Initial percentage markup under Rules 1 and S should not bo determined separately for each department since under Section 1499.20(c) of the General Maximum Price Regulation (incorporated by reference into Regulation Wo. 210) the separate departments are not deemed separate sellers. In use of Rule 1, for example, the initial offering prioes and costs during the last six months of 1941 of the same comuodity should bo grouped together in determining the naricup cm that commodity. Thus, if the same oonmodity were sold in a basement and upstairs department during the last six months of 1941, and the coats of the commodity during this period in the basement totaled $250 and the first offering prices totaled $300, while the costs of the coueaodity in the upstairs department totaled $300 and the first offering prices totaled $400, the markup on this commodity obtained through use of Rule 1, would bo calculated by adding the basement and the upstairs costa ¿$550), subtracting this sum from the sum of basement and upstairs first offering prioo ($700), and dividing the difference ($150) by the sum of the costs ($550). By applying the Initial percentage ccmnodity markup obtained through the use of Rulo 1 to the lower of the average or current costs of the commodity being priced, the maximum prioo of that commodity is determined. However, if a customary differential in prioo prevailed between the commodities sold in the upstairs department and those sold in the basement, the same cwmaod-ity cannot be sold both upstairs and in the basement at the same price since under Section 1372.104, the maximum price calculated for the oommodity must be reduced in the basement to refloat the customary differential between the basement and upstairs prices.
This is also the case in the use of Rule 3 where the similar commodity most nearly like the eno being priced was sold in different departments during the last six mouths of 1941.
"Infants* sises." The term "infants* sises,” referred to in Sootion 1372,112, means garments designed for Infants. It is not possible to designate infants* garments by specific sises because infants* sises 1 to 3 or 1 to 4 overlap with children's sises starting with sise 2 or 3 and running to 6 or 10. Thus the test is not whether the garment site is 0, 1, 2, or 3, but whether ths garment is designed for infants* wear.
Transportation
"Average* and "current* costs - transportation and insurance charges. In determining his "average cost" and "current costs" under ihe Regulation, a deaiermay include transportation and insurance chargee as part of the cost of the goods, only if he also included these charges in determining his "initial percentage markup."
Definitions
"Sane ccmmodity"-definition. In determining the "initial percentage mark-up" of a commodity under Rulo 1 (Sootion 1^7102), the seller determines the costs and initial offering prices of the "same oommodity". The term "same commodity" has the sane meaning as under the General Máximos Prioo Regulation. Thus, different items may not be grouped under one commodity unless (a) all basic elements are identical, (b) they are made from the same materials, (o) they aro regarded as identical by the trade, and (d) they invariably sold at the same price under the same conditions.
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Record» and Reports
Supplementary statements. Changes in the prices for cost-of-living ocmasodities for which prices have already been""filed by a seller, need not be shown in a supplementary statement. Only cosnodities and their prices newly offered for sale should be listed in any supplementary statement.
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U. S. GOVERNMENT PRINTING OFFICE 0—1944