[The Nineteenth Report of the Office of Price Administration; Letter from the Administrator, Office of Temporary Controls, Transmitting the Ninteenth Report of the Office of Price Administration Cover the Period Ended September 30, 1946] [From the U.S. Government Publishing Office, www.gpo.gov] THE NINETEENTH REPORT OF THE OFFICE OF PRICE ADMINISTRATION LETTER FROM THE ADMINISTRATOR, OFFICE OF TEMPORARY CONTROLS TRANSMITTING THE NINETEENTH REPORT OF THE OFFICE OF PRICE ADMINISTRATION, COVERING THE PERIOD ENDED SEPTEMBER 30, 1946 February 18, 1947.—Referred to the Committee on Banking and Currency and ordered to be printed. UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1947 LETTER OF TRANSMITTAL Office of Temporary Controls, Washington, 25, D. G., February 17,19^7. Sirs: I have the honor to submit herewith the nineteenth report of the Office of Price Administration, covering the period ended September 30, 1946. Throughout that period Paul A. Porter was Administrator of the agency, which has since been incorporated in the Office of Teinporary Controls. Sincerely yours, Philip B. Fleming, Major General, U. 8. A. Administrator. The President pro tempore of the Senate. The Speaker of the House of Representatives. TABLE OF CONTENTS Chapter Page I. Price Control Extension Act of 1946 __________________ 1 Decontrol Provisions_______________________________ 1 Subsidies-------------------------------------------------- 5 Ceiling Price Adj ustments_______________________________.. 6 Rent Control_________________________________________________ 9 Enforcement Provisions_______________________________________ 9 Recommendations by the President to the Congress_______________________________________ 10 II. Price Decontrol_______________________________________ 11 Period Without Controls_____________________________________ 11 Price Decontrol Board________________I___________________ 13 Other Decontrol Actions____________________________________ 14 III. Price Increases_______________________________________ 16 Food and Agricultural Products______________________________ 17 Textiles and Apparel________________________________________ 20 Consumer Durable Goods.I____________________________________ 22 Building Materials and Lumber_______________________________ 23 Automobiles and Tires_______________________________________ 25 Machinery and Metals _ _ _ _ _ 1____________________________ 26 Paper, Chemicals, and Fuels--------------------------------- 28 Price Summary of the Quarter________________________________ 29 Appendix to Price Chapters____________________________ 32 Actions Extending or Resuming Price Control______________ 32 Dollar-and-Cent Prices. ____________________________________ 32 Price Increases_____________________________________________ 33 Releases from Price Control_______________________________ 45 IV. Transportation and Public Utility Rates_______________ 64 Transportation_____________________________________________ 64 Public Utilities____________________________________________ 67 V. Rent Control Program.________________________________ 70 Amendments and Interpretations___________________________ 71 Area Office Operations___________A_________________________ 72 Protests and Review Proceedings__________________________. 73 Veterans’ Sales Control_____________________________________ 74 VI. Emergency Court of Appeals____________________________ 76 Price Control Cases. ______________________________________ 76 Rent Control Cases__________________________________________ 80 iii iv • Nineteenth Quarterly Report Chapter Page VII. Sugar Rationing----------------------------------------- 85 Allocation and Distribution_____________________________________ 85 Consumer and Institutional Rations------------------------------ 86 Industrial User Rations_________________________________________ 87 VIII. Enforcement______________________________________________ 88 Enforcement Activity____________________________________________ 89 Litigation______________________________________________________ 92 Statistical Summary_____________________________________________ 94 Price Control Extension Act of 1946 • 1 • I • PRICE CONTROL EXTENSION ACT OF 1946 In extending the life of the Office of Price Administration until June 30,1947, by the Price Control Extension Act of 1946,1 the Congress stated that “unnecessary or unduly prolonged controls over prices and rents and use of subsidies would be inconsistent with the return to a * * * peacetime economy” * * * and that “adequate prices are necessary stimulants to * * * production. * * *” The new law, enacted July 25 after almost a month without controls, reinstated all regulations, orders, requirements, etc., of the Office of Price Administration in effect on June 30, 1946, as if the act had been renewed without any time lag. It made explicit the prohibition that no act or transaction occurring after June 30 and before the date of enactment should be deemed a violation.2 A number of commodities were specifically removed from control and an independent board was created with final authority on price decontrol. Authority over agricultural commodities was transferred to the Secretary of Agriculture and many modifications were directed in methods of setting ceiling prices. Insofar as the provisions of the new act required any change in any maximum price, the Administrator was given 30 days from the date of enactment (July 25,1946) to make those changes. The most important provisions of the new legislation are outlined in the following discussion. DECONTROL PROVISIONS The act provided for an independent Price Decontrol Board of three members appointed by the President with the advice and consent of the Senate. Its functions were: (1) Hearing appeals from denials, by the Price Administrator or the Secretary of Agriculture, of petitions for decontrol brought by industry advisory Committees (or from inaction on decontrol petitions).; (2) giving advance consent to recontrol actions; (3) determining whether, after August 20, 1946, price controls should be reimposed on livestock, milk, cottonseed, soybeans, any food or feed product substantially made from any of these commodities, grains for which standards had been established under the 1 • — T Pin / T-_1 — -t jt \ __ _____ i-w T t i . —. - 2 • NineteentlTQuarterly Report United States Grain Standards Act, or any livestock or poultry feed substantially made from those grains; and (4) determining whether subsidies should be reestablished for any of these commodities whenever maximum prices are in effect for them. Decisions of the Board were to be final, (sec. 1A (h)) .3 General Decontrol Standards N onagricuLturod commodities.—The Price Administrator was directed to decontrol all nonagricultural commodities not important in relation to business costs or living costs on or before December 31, 1946 (sec. 1A (d) (1)). Since VJ-day the Office had followed the general policy of decontrolling such unimportant commodities. By the statute the Congress set a definite date by which this action was to be completed.4 Whether or not a nonagricultural commodity is important in relation to business or living costs, the amended act made it mandatory to decontrol the commodity whenever its supply exceeds or is in approximate balance with the demand for it (including appropriate inventory requirements) (sec. 1A (d) (2)). The Price Administrator, with the advance written consent of the Price Decontrol Board, was authorized to recontrol any decontrolled nonagricultural commodity if after a reasonable test period its supply was no longer consistent with the applicable decontrol standard. The supply was to be deemed inconsistent with the applicable decontrol standard in any case “where the prices of the commodity have risen to and after a reasonable test period remain at unreasonable and inflationary levels” (sec. 1A (d) (3)). Agricultural commodities^—The Secretary of Agriculture was authorized to decontrol agricultural commodities and set up standards 8 Section references throughout, unless otherwise indicated, are to the Emergency Price Control Act of 1942, as amended. 4 The core of the Office decontrol policy, announced in July 1945, was to drop price control over a particular commodity as soon as it appeared likely that balanced demand and supply would keep prices at a stable level. Authority of the Office to remove price controls had been enlarged and defined in an Office of Economic Stabilization directive authorizing suspension of control where, in the judgment of the Price Administrator, an improved supply and demand picture had so softened the market that prices of a particular commodity were not likely to rise above the general level established by their current ceilings. If this judgment proved erroneous and prices rose or threatened to rise above that level, the Administrator was directed to reinstate former ceilings. If, on the other hand, no price increase followed a trial period, the Administrator was authorized to exempt the commodity. Advance notice to the Stabilization Director was required in actions which affected any commodity entering significantly into the cost of living. See Office of Economic Stabilization Directive 68, July 25, 1945; also, Fifteenth Quarterly Report of OPA to Congress, pp. 2-3. B For the purposes of sec. 1A (e) except (6) of the amended act, the term “agricultural commodity’’ is defined (sec. 1A (e) (4) (B)) as follows: “The term ‘agricultural commodity’ shall be deemed to mean any agricultural commodity and any food or food product processed or manufactured in whole or substantial part from any agricultural commodity.” Under sec. 2 (i) as amended, fish and other seafoods are deemed to be agricultural commodities, and commodities processed or manufactured in whole or substantial part from fish or seafoods shall be deemed to be manufactured in whole or substantial part from agricultural commodities. Price Control Extension Act of 1946 • 3 and procedures for decontrol and recontrol similar to those for non-agricultural commodities. In substance, these standards and procedures were the same as those elaborated for nonagricultural commodities (sec. 1A (e) (2) (B)). The Secretary also was authorized to ordor the adjustment of maximum prices for agricultural commodities if he determines that the existing maximum prices are impeding necessary production (sec. 1A (e) (2) (A)). The Secretary of Agriculture, in exercising his functions under the Emergency Price Control Act, was specifically stated not to be subject to the direction or control of any other appointive officer or agency in the executive branch of the Government, except the Price Decontrol Board in the exercise of the powers granted it under the act. The Secretary was empowered to withdraw his approval of any action he may have previously approved. Upon such withdrawal the action was to be rescinded (sec. 1A (e) (5)). Control of any commodity, or any service rendered with respect to any agricultural commodity, was prohibited unless a regulation establishing a maximum price on that commodity had been issued prior to April 1, 1946 (sec. 1A (e) (6)). Specific Decontrols The new act set up an elaborate system of specific decontrols and recontrols. The commodities specifically decontrolled were divided into two categories. None of these could be brought back under control until after August 20, 1946, and then only with the advance written consent of the Price Decontrol Board, upon the Board’s finding that: (a) Its price had risen unreasonably above a price equal to the lawful maximum price in effect on June 30,1946, plus the amount per unit of any subsidy payable with respect thereto as of June 29, 1946; (S) it was in short supply and its regulation was practicable and enforceable; and (c) the public interest would be served by regulation (sec. 1A (e) (8) (B) and (C)). Commodities listed in the first category were petroleum and petroleum products; poultry, eggs, and food and feed products made from poultry or eggs; and leaf tobacco and tobacco products (sec. 1A (d) (4) and sec. 1A (e) (7) (A)). The second category comprised livestock, milk, and food or feed products made from livestock or milk; cottonseed, soybeans, and food or feed products made from cottonseed or soybeans; and grains and livestock or poultry feed made from grains (sec. 1A (e) (8) (A)). With respect to commodities in this group, the Price Decontrol Board was directed to proceed immediately to consider whether they were to continue free from control after August 20. If the Board failed to direct continued decontrol of any such commodity on or before that 4 • Nineteenth Quarterly Report date, it was to be automatically recontrolled effective, August 20. If decontrol were continued, however, the Board was empowered to direct recontrol at any subsequent time it made the findings set forth above (sec. 1A (e) (8) (C)). In the case of milk, decontrol and recontrol could be exercised on a regional basis (sec. 1A (e) (8) (D)). Agricultural Commodities in Short Supply The Secretary of Agriculture was required to certify to the Price Administrator, commencing the “first day of the first calendar month which begins more than 30 days after the date of enactment,” 6 those commodities which he determined to be in short supply.7 On the first day of each succeeding month, the Secretary was directed to certify changes by adding other commodities which had become in short supply and removing those he deemed no longer in short supply. No maximum price was to govern any agricultural commodity during any calendar month commencing August 1946 unless it was certified as being in short supply (sec. 1A (e) (1)). Petitions for Removal of Maximum Prices Effective July 1,1946, any industry advisory committee was enabled to petition the Administrator to remove maximum prices with respect to a nonagricultural commodity the supply of which the committee believes exceeds or is in approximate balance with demand therefor, due regard being given to inventory requirements.8 No petition could be filed until after December 31,1946, with respect to a commodity not important in business or living costs (sec. 1A (d) (1) and (g) (1)). A petition based on the supply-demand-balance standard was required to state specifically the grounds upon which it was based and be supported by specific written evidence. The Administrator was directed, within 15 days after receipt of such a petition, to grant it or notify the committee in writing why it did not meet decontrol standards (sec. 1A (g) (2)). In case of denial in whole or in part, the industry advisory committee was enabled to file a request for further consideration, argument on which had to be heard by the Administrator himself or a Deputy Administrator within 10 days after receipt. Provision was made for appearance at such a hearing by the Consumer Advisory Committee and the Labor Advisory Committee. Within 15 days after such hearing the Administrator was required to grant the petition or state to the industry committee in writing his reasons for • July 25, 1946. T “An agricultural commodity shall be deemed to be in short supply unless the supply of such commodity equals or exceeds the requirements for such commodity for the current marketing season” (sec. 1A (e)). 8 For procedures, see Procedural Regulation 17, effective August 23, 1946; 2d Revised Procedural Regulation 13, effective August 23,1946 ; and Supplementary Order 183, effective September 17, 1946. Price Control Extension Act of 1946 • 5 denying it in whole or in part, including the economic data or other facts on which his conclusion was based (sec. 1A (g) (2)). Within 30 days after the issuance of a full or partial denial, following a hearing, the industry advisory committee was authorized to petition the Price Decontrol Board for a review of the Administrator’s action. Industry advisory committees were also authorized to petition the Price Decontrol Board directly if the Administrator failed to act on a petition or request for further consideration within any of the time limits prescribed. This direct petition was to be made within 30 days after expiration of the time limit which the Administrator had failed to meet (sec. 1A (g) (3)). The Price Decontrol Board was empowered to direct removal of controls in such cases if review warranted this action. Orders of the Board were made “not subject to modification or review by any other department or agency or by any court” (sec. 1A (h) (3)). The amended act specifically provided that its special provisions for decontrol actions did not impair the Administrator’s general authority to take decontrol action pursuant to the basic standards of the act (sec. 1A (f)). Procedures with respect to industry advisory committee petitions on agricultural commodities and the proceedings before the Price Decontrol Board were made the same as those for nonagricultural commodities described above, except that such petitions were to be filed with and acted upon in the first instance by the Secretary of Agriculture, who was authorized to direct the Administrator to remove price controls. f SUBSIDIES9 A total of 1 billion dollars was authorized for subsidy payments as follows: (1) For rubber produced in Latin America and Africa for which commitments were made before January 1, 1946, $31,000,000; (2) for premium price payments for copper, lead, and zinc, $100,-000,000; (3) for such Reconstruction Finance Corporation purchases of tin ores and concentrates as RFC deems necessary to insure continued operation of the Texas City tin smelter; and (4) for noncrop programs, 1946 crop program operations, and the 1947 crop program operations relating to sugar, flour, petroleum, petroleum products, and other domestic and imported materials and commodities, $869,000,000 (sec. 6 (a) (l)-(4)). The noncrop programs, the 1946 crop program operations, and the 1947 crop program operations were required to be terminated not later than April 1, 1947 (sugar exempted), and their cost during the last 6 months of 1946 was limited to $629,000,000 (sec. 6 (a) (4)). • References in this section, except where otherwise specified, are to Price Control Extension Act of 1946. 6 • Nineteenth Quarterly Report Inauguration of new subsidy programs (sugar exempted) was forbidden, as was any increase ill the rate of payment on subsidy programs in effect on June 29, 1946 (sec. 6 (a) (4)). The Commodity Credit Corporation or any other Government agency was prohibited from absorbing any increase over the June 30 price paid for Cuban sugar— 3.675 cents per pound, raw basis, f. o. b. Cuba (sec. 6 (e)). The new act stipulated that no subsidy program was to be carried out with respect to any commodity, except petroleum produced from stripper wells, for any period during which maximum prices on such commodity were not in effect (sec. 6 (a) (4)). The new act directed corresponding price increases to offset reduction or termination of direct or indirect subsidies (except for transportation subsidies, differential subsidies to high-cost producers, and subsidies in the form of premium payments under the Veterans’ Emergency Housing Act of 1946) and discontinuance of roll-back subsidies (sec. 6 (b) and (c)). The Price Decontrol Board was empowered to determine whether any subsidy in effect prior to June 30,1946, was to be reestablished in whole or in part for any of the commodities subject to possible recontrol by the Board.10 The orders of the Board in this respect were made controlling upon the Price Administrator, the Commodity Credit Corporation, and the Reconstruction Finance Corporation (sec. 1A (e) (9), Emergency Price Control Act of 1942, as amended). CEILING PRICE ADJUSTMENTS A number of provisions were enacted directing changes in methods of establishing ceiling prices. Among these were a new product standard designed to establish adequate price levels for all commodities, a new pricing standard for wool and cotton textile products, five provisions dealing with distributors’ margins, and provisions affecting fish, lumber, restaurants, and imports. Major Product Standard The standard for pricing major products was made mandatory upon application by the appropriate industry advisory committee. This standard required adjustment of the maximum price of a product when, on the average, it failed to cover the average dollar price of the product in 1940 plus the average increase in its cost since 1940. The extent of the price increase, however, was made subject to two limitations: (1) Where the average maximum prices thus increased would be higher than the product’s average current total costs plus the industry’s average over-all percentage profit on sales in 1940, the maximum prices need be raised no higher than the latter level; (2) where the 10 See above, p. 3. Price Control Extension Act of 1946 • 7 average maximum prices thus increased would be higher than the product’s average current total costs plus a reasonable profit, the maximum prices need be raised no higher than the latter level unless the output and the use of the product can be substantially increased without curtailing the production of any other product at least equally needed. The new provision made clear that the average in all cases was industry-wide (sec. 6). Distributors’ Margins The provisions dealing with distributors’ margins were as follows: Any reduction was prohibited in the peacetime wholesale or retail trade discounts, mark-ups, or dealer handling charges for a commodity whose production or distribution was reduced by 75 percent or more during the 3 years beginning March 2,1942, as a result of governmental regulation or restriction, until unit sales should reach the average annual 1939-41 rate for 6 months (sec. 2 (q) and (r)). This provision related to reconversion goods such as automobiles. Also prohibited was the reduction of distributors’ peacetime discounts or mark-ups for manufactured or processed commodities that accounted for one-half or more of the gross sales in 1945 of a majority of the dealers in the particular distributive trade and the deliveries of which to that trade were lower in the first quarter of 1946 than in the first quarter of 1945 (sec. 2 (s)). This related principally to farm equipment dealers. In establishing maximum prices for wholesale or retail distributors, the Price Administrator was required to allow the average current cost of acquisition of any commodity plus the average percentage discount or mark-up in effect on March 31,1946 (sec. 2 (t)). It was also provided that so long as livestock, milk, cottonseed, soybeans, food or feed products made from these commodities, grains for which standards have been established under the United States Grain Standards Act, and livestock or poultry feed made from these grains, remained decontrolled, no maximum price, mark-up, discount or margin could be maintained for commodities made substantially from these commodities, which failed to return to the processors and distributors the raw material cost, the conversion or distribution cost, and a reasonable profit. The raw material cost was to be computed at least once every 60 days at not less than current cost (sec. 1A (e) (10)). Textile and Apparel Provisions The Price Control Extension Act of 1946 required that manufacturers’ and processors’ maximum prices for any major item of a product made in whole or in major part from cotton-or cotton yarn, or wool or wool yarn, be no less than the sum of (1) the raw cotton or wool cost, figured at parity or current cost, whichever is greater, of 8 • Nineteenth Quarterly Report the grade and staple of cotton or wool used in the item, (2) mill conversion costs (by weighted average), and (3) a reasonable profit not less than the 1939-41 weighted average profit earned on an equivalent unit of the item (sec. 3 of the Stabilization Act of 1942, as amended). The act prohibited any regulation or order fixing a quota of any product which the seller may sell to any buyer (sec. 2 (j) (5)). This outlawed the women’s nylon hosiery regulation (MPR 602). For finished woven or knitted fabrics made primarily of cotton fiber, or for apparel made from them, the Price Administrator was forbidden to maintain differentials in the method of determining the basic grey-goods cost or the finished-woven fabrics or finished-knitted-fabrics cost to which a mark-up is to be applied based on the degree of integration of the seller (sec. 2 (w)). After July 1, 1946, no maximum price regulation or order was to be issued or continued in effect which required any seller to limit his sales by any weighted average price limitation based on his previous sales (sec. 2 (p)). This outlawed the maximum average price regulations. Import Provisions Whenever the world price of a commodity essential to the economy of the United States (average price at which it could be purchased when landed duty-paid at any United States port of entry) exceeds the legal maximum purchase price, with the result that its importation is substantially reduced, or domestic trade in the commodity or products processed directly from it is substantially curtailed, the Price Administrator was directed either to (1) remove the maximum purchase price of the commodity and the maximum prices of products directly made from it, or (2) increase maximum prices for imports of the commodity and maximum prices of products directly made from it to the extent necessary to prevent the reduction of imports or curtailment of domestic trade (sec. 2 (x)). Other Pricing Changes Softwood logs and lumber.—Maximum prices for softwood logs and lumber were required to be high enough to permit the producers of at least 90 percent of the production to recover their current costs of production (sec. 2 (v)). Restaurants.—Ceilings on every item sold by a restaurant, a major part of which item is composed of a decontrolled commodity, were required to reflect cost plus a customary margin (sec. 2 (o)). The highest price line limitation in service establishments (including restaurants) was rendered illegal (sec. 2 (k)). Fish and other sea food.—Fish and sea food were defined as agricultural commodities, and commodities made from fish; or -sea food Price Control Extension Act of 1946 • 9 were deemed to be made from agricultural commodities, for all purposes of the act, except the provisions relating to parity of agricultural commodities. Average prices in 1942 were established as the floor for. maximum prices for fish, sea food, and commodities made therefrom (sec. 2 (i)). New commodities.—Maximum prices were prohibited on any commodity (1) which was not commercially or industrially available before January 30,1942, and (2) whose use in the production of another commodity either increases the life or reduces the cost of production of that other commodity without increasing the cost to the ultimate consumer (sec. 2 (u)). RENT CONTROL Separate classification and consideration were required of (1) transient hotels, (2) residential and apartment hotels, and (3) tourist courts, rooming houses, and boarding houses. It was expressly stated that while maximum rents are in effect under the act with respect to housing accommodations in any defense-rental area, such housing accommodations are not to be subject to rent control by any State or local government (sec. 2 (b)). ENFORCEMENT PROVISIONS The new act prevented the cumulation of the Administrator’s claim in case of a treble damage action based on overcharges to a number of buyers. In addition, if the defendant in a treble damage action proves that his violation was neither willful nor the result of failure to take practicable precautions against its occurrence, the damages assessed were limited to the amount of the overcharge. The effect of this provision was to eliminate in such cases the $25 minimum prescribed by the former law (sec. 205 (e)). The Administrator was directed to refrain from instituting or maintaining a treble damage action if (1) the violation arose because the seller acted upon and in accordance with the written advice and instructions of the Administrator or any regional adminstrator or district director of the Office of Price Administration, or (2) if the violation arose out of a sale to an agency of the Federal Government or to any public housing authority supervised or financed by such an agency if the sale was made pursuant to the lowest bid made in response to an invitation for competitive bids (sec. 205 (e)). The institution or maintenance of a treble damage action was prohibited where the Administrator determines (1) that the violation consisted of an apparel manufacturer’s selling an item at his published March 1942 price list prices instead of his March 1942 delivered prices, and (2) that his customary pricing patterns for related apparel items would be distorted by a requirement that his ceilings be the March 1942 delivered prices (sec. 205 (e)). 10 • Nineteenth Quarterly Report Suspension of a license was forbidden if the person charged with the violation proves that the violation in question was neither willful nor the result of failure to take practicable precautions against the occurrence of the violation (sec. 205 (f) (2)). RECOMMENDATIONS BY THE PRESIDENT TO THE CONGRESS The Price Control Extension Act provided that as soon as practicable after its enactment, and in any event on or before January 15, 1947, the President recommend to the Congress such further legislation as in his judgment is needed to establish monetary, fiscal, and other policies which are adequate to supplement the control of prices and wages during the balance of the fiscal year 1947, and to insure that general control of prices and wages can be terminated by the end of that fiscal year without danger of inflation thereafter. On or before April 1,1947, the President must report to the Congress what, if any, commodities or classes of commodities, including housing accommodations, are in such critically short supply as to necessitate, in his judgment, the continuance of the powers granted by the act as to them after June 30, 1947, together with his recommendations as to established departments or agencies of the Government (other than the Office of Price Administration) which should be charged with the administration of such powers (sec. 1A (c)). Price Decontrol • 11 • II • PRICE DECONTROL The third quarter of 1946 was characterized first by a period of complete decontrol of prices, then by a restoration of controls, except for specified commodities, followed by a general revision of price ceilings in order to carry out the mandate of the Congress and an acceleration of the decontrol process under the provisions of the new extension act. The extension act provided that decontrols were to be effected in several ways, with final authority invested in a Price Decontrol Board: (1) Some commodities were specifically decontrolled, with the Price Decontrol Board directed to determine immediately the necessity and feasibility of recontrolling most of them.1 The Decontrol Board, moreover, was empowered to order decontrol of any commodity, control over which was continued after an industry advisory committee had petitioned the Price Administrator for decontrol, if, in its opinion, decontrol was justified. (2) The Price Administrator was to order decontrol of any non-agricultural commodity that was no longer in short supply, and was directed to decontrol by December 31 all commodities which were unimportant to living or business costs.2 (3) The Secretary of Agriculture could at any time order decontrol of an agricultural commodity under similar conditions. In addition he was directed to publish monthly a list of commodities which were in short supply, and no price ceiling could be set on any commodity not appearing on that list.8 It is estimated that by September 30,. about 50 percent of the private national economy remained under control, as compared with a wartime peak of 80 percent. Decontrol had been accomplished partly at the discretion of the Administrator and partly in accordance with the provisions of the new act. The various phases of decontrol during the quarter are discussed below, and adjustments in ceiling prices in the following chapter. PERIOD WITHOUT CONTROLS Between June 30, when the Emergency Price Control Act expired, and July 25, when the Price Control Extension Act of 1946 became 1 Sec. 1 (A) (h) ; see above, pp. 3—4. * Sec. 1A (d) (1) and (2) ; see above, p. 2. ’ Sec. 1A (e) (2) (B) and sec. 1A (e) (1) ; see above, p. 4. 12 • Nineteenth Quarterly Report effective, the country was entirely without price controls. Between these dates prices spurted up in every market. The wholesale price index rose 10 percent, the largest advance being in food prices, which climbed 24 percent, while the over-all increase in the consumer price index (from mid-June to mid-July) was almost 6 percent, with food mounting 14 percent. These represented increases nearly 70 times as rapid at wholesale, and more than 30 times as rapid at the consumer level as had prevailed since May 1943, when the hold-the-line policy went into effect. Prices of many of the basic food and feed items rose more sharply still and many reached new all-time highs at every level of distribution, a number of spectacular increases occurring in livestock and grain prices. Prices for prime steers at Chicago, for example, rose 68 percent, and for hogs 64 percent. Yellow corn at Chicago advanced 58 percent, and-spring wheat at Minneapolis 23 percent. At the same time, prices of certain sweetening items, such as honey, soared up to 100 percent. Wholesale meat prices, decontrolled until September 5, had jumped 69 percent by July 20 and 83 percent by August 24. Prices for cereals and dairy products had increased 20 and 18 percent, respectively, by July 20, while prices for dairy products, which remained free of control, had advanced 28 percent by September 28. Fruit and vegetable prices, however, declined seasonally, in view of adequate supplies. Soybean and cottonseed meal prices rose by about 50 percent, and linseed meal prices also advanced sharply. Similar increases occurred in the prices of other byproduct feeds, wheat meal feeds, hominy feed, and brewer’s and distiller’s grains and meal scraps. Prices paid by importers of green coffee rose approximately 8 cents a pound above the June 30 ceilings and the prices of cocoa beans increased by 5 to 8 cents per pound. On the other hand, both beet and cane sugar remained at ceiling levels at the refinery stage. Virtually no sales of legume seeds or rough rice took place during the period without controls, since 1945 supplies for 1946 seeding were exhausted and the 1946 crop had not been harvested. In many cases, milled rice prices trebled at retail, however, and when the Government refused to pay higher than ceiling prices for rice which had been set aside in accordance with an order of the Department of Agriculture, quantities of milled rice were sold to wholesalers and chain stores at far above former ceilings. Hide, leather, and skin prices jumped to new high levels during this period. Hide prices, for example, by July 20 had increased 62 percent over June 30, 1946, levels, and leather prices reflected the increased raw material prices. Raw cotton prices rose 15 percent, and prices for print cloth almost 19 percent Price Decontrol • 13 Zinc and lead prices climbed 15 percent, but copper and tin were held steady by sales at ceiling prices from Government stocks. Solid fuel prices generally remained at prior ceiling levels. The Office received reports of scattered sales above the previously established maximum price levels, but most sellers maintained their former maximum prices and awaited final congressional action on price control legislation. In the field of petroleum, which was automatically decontrolled by the provisions of the new extension act, a general price increase of 25 cents per barrel was made effective by crude-oil producers simultaneous with decontrol. Refiners increased product prices to reflect the crude-oil price increase and also a rise in railroad freight rates allowed by the Interstate Commerce Commission, as well as miscellaneous costs resulting from adjustments in effect or projected for margin increases to jobbers. The effect of price increases to consumers and on business costs was in the neighborhood of $550,000,000 per year. PRICE DECONTROL BOARD The Price Decontrol Board set up by the Price Control Extension Act of 1946 was charged with determining whether, after August 2’0, 1946, price ceilings were to be reimposed on livestock, milk, cottonseed, soybeans, food or feed products made from these commodities, grains, and livestock or poultry feed made from these grains. After extensive hearings the Board on August 20 directed recontrol of livestock and meat, flaxseed and byproduct feeds, and cottonseed and soybeans and food or feed products substantially manufactured therefrom, on the ground that prices had risen unreasonably since June 30, 1946, that the supply was short, and that regulation was practicable and would serve the public interest. On the other hand, the Decontrol Board declined to order the recontrol of milk and food or feed products processed or manufactured in whole or substantial part therefrom, since prices had not risen unreasonably above a price equal to the lawful maximum price in effect on June 30, plus the amount per unit of the subsidies payable with respect thereto as of June 29. The Board found, however, that milk and its products were in short supply, that its regulation would be practicable and enforceable, and that the public interest would be served by its regulation. It indicated that study of milk and dairy product prices would be continued,'and that it would not hesitate to reimpose ceilings if it should find subsequently that prices had risen unduly beyond June 29 prices as adjusted for subsidies. With respect to grains the Board failed to find that recontrol would be in the public interest, since it appeared that supply would be adequate to meet anticipated demand when crops were harvested, and that price trends were downward in anticipation of the supply, with a 725854—47-------2 14 • Nineteenth Quarterly Report leveling off at ceiling levels expected. The grains decontrolled were wheat, rye, corn, oats, feed oats, mixed feed oats, barley, grain sorghums, and any livestock or poultry feed made entirely from any one or more of the whole grains. The Board did not recommend the reimposition of ceilings on poultry or eggs, or food or feed products processed or manufactured therefrom, or on leaf tobacco or tobacco products processed or manufactured from such leaf tobacco, or on petroleum or petroleum products. OTHER DECONTROL ACTIONS In accordance with the intent of Congress, the Office proceeded during the quarter to remove price controls as rapidly as possible, consistent with the avoidance of a cumulative and dangerous unstabilizing effect. Regulations were issued setting forth procedures to be followed in filing formal petitions for decontrol, and a method was provided4 for obtaining exemption from price control of new commodities, as required under-the new act.5 A great many food commodities were decontrolled during the quarter by virtue of their omission from the Secretary of Agriculture’s first-of-the-month short-supply lists for which provision was made in the new act. By the close of the period most of the fresh and processed fruits and vegetables had been removed from price control. Among the items decontrolled were fresh pears, both domestic and imported, processed sour and sweet cherries and cherry products, dried fruit, canned and processed soups, baby foods, mincemeat and fruits containing over 20 percent sugar, and distilled vinegar containing over 20 percent grain. Most species of fresh and frozen fish had been suspended from price control since April, and this suspension was indefinitely continued after August 18, the previous termination date. This was done at that time because of the probability that the Secretary of Agriculture would not include such fish on his September 1 short-supply list. Halibut, fresh and frozen, was added to the species which remained out of price control. By the close of the quarter only salmon, tuna, and Maine and California sardines remained under control, with salmon scheduled to be removed October 1. The major canned fish remained under control. Although the extension act restored controls on most of the important bakery products which had been under control as of June 30, the interpretation that a product is to be exempt if a third of its contents by weight or volume consists of exempt items resulted in the decontrol of a substantial number of sweet goods. * 2d Rev. Procedural Regulation 13 and Procedural Regulation 17, both effective August 23, 1946; Supplementary Order 173, effective August 19, 1946. ’ Sec. 1A (g) (2) and sec. 2 (u). See above, p. 4 and p. 9. Price Decontrol • 15 During the period under review the following grocery products were removed from price control on the grounds that they were insignificant in the cost of living and business costs: Malt and maltose sirups, wheat and rice starch and sirup and wheat gluten, honey, cinnamon, processed meat and fish sauces, white and black pepper. Selective decontrol actions were taken during the quarter on a long list of items considered of minor importance to the current housing program, including certain items of mechanical equipment specifically designed for commercial, industrial, and institutional use. Among these decontrolled items were some asbestos insulating materials, expanded metal products, basic granular refractories and industrial sands, and specified limestone products, waterproofing and pipe compounds, certain refractory products, retarder rock, slag, frit, putty, calcimine, pigments, clay conduit, and miscellaneous sewer pipe. The major decontrol problem in this field, however, still remained unsolved at the close of the quarter—the relative importance of certain building materials and components to the costs of the construction industry or to the costs of home owners. A long list of chemical products, plastic material, and paper articles, motorcycles and parts, and heavy trucks were released from control because of their unimportance in living or business costs. A large group of heavy machinery and equipment was released from control since users were chiefly large companies which could resist excessive price increases. Improved supply made it possible to release red cedar lumber, rosin, numerous rubber items used by doctors and in laboratories, some electrical equipment, a number of processing machines and parts, poultry farm equipment, and miscellaneous metal products. All furs except mouton lamb and rabbit were suspended from control. These two furs constituted almost 50 percent of the total volume of fur garments produced annually and were also in the lowest priced group in the fur industry. Also suspended during the quarter because of unimportance to living or business costs were all imported commodities except specified consumer goods, foods, industrial and building materials, and textile fabrics. Principally affected by this action were imported automobiles, furniture, motorcycles, bicycles, cameras and photographic equipment, industrial machinery, chinaware and glassware, and household utensils and appliances. A complete list of commodities decontrolled during the quarter may be found in table 4 of the appendix to the price chapters.6 6 See pp. 45—63. See also Directory of Decontrolled Commodities, Office of Price Administration, October 1,1946, U. S. Government Printing Office, Washington 25, D. C., 1946. 16 • Nineteenth Quarterly Report • III • PRICE INCREASES Immediately following the signing of the Price Control Extension Act of 1946 on July 25, June 30 ceilings again became effective on most products and services other than those which were specifically decontrolled by the act. In the next few days, however, a total of 86 industry-wide price increases was granted, many of which had been scheduled before the hiatus in price control. By the close of the quarter, 434 industry-wide increases—as differentiated from individual company adjustments—had been granted, about 192 a month, as compared with a monthly average of 142 in the preceding quarter and of 70 in the first quarter of 1946. In addition, more than 6,200 individual price increases were granted during the quarter to manufacturers who had applied for ceiling adjustments because of individual hardship. This was an average of 2,756 a month, as compared with a monthly average of 2,746 in the preceding quarter and 330 in the first quarter of 1946. It should be pointed out that the large number of industry-wide increases granted during the third quarter of 1946 lessened the need for individual firm adjustments! I Virtually all the industry-wide increases resulted from the provisions of the new extension act though only somewhat over 40 percent were made solely to conform with these provisions. In an additional 15 percent, higher production costs, arising out of advances in raw materials prices made necessary by the extension act, cut into the baseperiod earnings rate, thus making increases mandatory under the industry-earnings standard. Similarly, 40 percent more of the industry-wide increases, which were granted under the discretionary powers of the Administrator to encourage production or distribution of peacetime products, were based on rising production costs attributable to provisions of the 1946 extension act. In many cases where an increase had already been granted to aid effective transition to a peacetime economy, the new situation compelled a further ceiling price rise, if the original production incentive were to be maintained. One-fourth of the total industry-wide increases were made solely to conform to the provision of the new extension act which required that ceiling prices at distributive levels reflect average current cost of acquisition, plus the average percentage mark-up in effect March 31, 1946.1 The number of price increases which resulted from this pro 1 Sec. 2 (t) ; see above, p. 7. Price Increases • 17 vision of the act, however, was far greater than that figure would indicate. Thus in another 35 percent of the cases, where price increases were made at the producer level to meet some other legal requirement of the act or at the discretion of the Administrator, resellers were permitted to pass the total producer increase through to the consumer. In a good many of these cases at least partial absorption would have been required, had not the new act required otherwise. There should be added also, in order to obtain a correct view of the picture, an indeterminate number of cases in which distributors of commodities still under the General Maximum Price Regulation were granted a blanket increase by amending the General Maximum Price Regulation in order to conform to this section of the act. This margin provision of the extension act alone is estimated to have added millions of dollars to consumer prices. On an annual basis, the added cost to consumers during the July-September quarter was, for example, about 20 million dollars on food bills and about 100 million dollars on consumer durable goods (using 1941 sales figures). A complete list of industry-wide price increases granted during the quarter is given in the appendix to the price chapters.2 FOOD AND AGRICULTURAL PRODUCTS Recontrol of livestock and meat, soybeans, and cottonseed products had been directed August 20 by the Price Decontrol Board. Livestock ceilings and meat ceilings at the processor level were, however, not reestablished until September 1, and meat ceilings at wholesale and retail were not made effective until September 5 and 10, respectively. The lags enabled sellers at various levels to dispose of their high-price stocks. Industry-wide price increases in these fields constituted about one-fourth of the total granted during the quarter and, with few exceptions, were made to conform to the provisions of the new extension act. A large proportion of the producer increases were either directed by the Secretary of Agriculture or were granted to offset terminated or reduced subsidy payments. Increases Directed by Secretary of Agriculture The Price Control Extension Act of 1946 authorized the Secretary of Agriculture to order the adjustment of maximum prices if in his opinion they were impeding necessary production.3 Under his direction, ceilings for livestock, beef, lamb, pork, and lard, and certain specialty items were reinstituted at levels substantially higher than those which existed on June 30? These increases amounted to 12 « See table 3, pp. 33-44. s Sec. 1A (e) (2) (A) ; see above, p. 3. * Amendments 68, 69, MPR 53; 37, 38, RMPR 148; 73, 74, RMPR 169; 27, RMPR 239; 27, MPR 389; 16, MPft 398; 22,.MPR 469 ; 6, MPR 574; all effective September 1, 1946; Amendment 6, SO 177, effective September 6, 1946; Amendments 39, MPR 355; 35, MPR 336 ; 23, MPR 394; all effective September 9, 1946; Amendments 40, MPR 355: 36, MPR 336 ; 24, MPR 394 ; all effective September 10, 1946. 18 • Nineteenth Quarterly Report percent at wholesale and 14 percent at retail. Coincidentally, the subsidy on sheep and lambs was discontinued. At the close of the quarter further consideration was being given to the necessity of increasing ceiling prices for veal on a similar basis as the increases granted on the better grades of beef.5 The Secretary of Agriculture also directed the Office to raise ceiling prices for a number of other agricultural and food products during the quarter. Among these were flaxseed and soybeans; crude and refined cottonseed, soybean, corn, and peanut oils; shortening, margarine, cooking and salad oils, and salad dressings; canned tomatoes; rough and milled rice; linseed oil and linseed oil products; canned salmon; dry edible beans; and gum turpentine.6 Subsidy Offsets Another important factor in raising food prices during the quarter was the necessity, under the new law, to offset discontinued or reduced subsidies by compensating rises in ceiling prices.7 These increases in turn led to advances in prices of products processed or manufactured from the formerly subsidized commodity. Thus, wheat flour ceilings were increased to compensate for the discontinuance of the subsidy and for the increased cost to millers over the former ceilings for wheat. Increased prices for flour mixes immediately followed, and also an increase in ceiling prices for bread, bread-type rolls, biscuits and cookies, and "bread crumbs and cracker meal.8 Offsetting increases were also granted on refined oils, shortening and salad and cooking oils, dried beans, the 1945 pack of canned vegetables, and the 1946 pack of canned and frozen vegetables.9 As a result of termination of subsidy payments on flaxseed in May 1946, prices had to be raised for linseed oil and linseed oil products. The advance in coffee prices was also due in part to removal of subsidy payments; in part this increase also resulted from the new import provision written into the act which ordered ceiling prices to be raised wherever supply of an essential import was threatened. An increase 8 Increase was granted effective October 10—Amendment 75, MPR 169. 8 Amendment 1, MPR 609, effective October 1, 1946; Amendment 73, MPR 53, effective October 1, 1946; Amendment 4, Supplement 19, FPR 1, effective August 27, 1946. MPR 518: Amendment 12, effective September 21, 1946; Amendment 13, effective September 18, 1946. 2d RMPR 150 : Amendment 16, effective September 21, 1946; Amendment 17, effective September 16, 1946. Amendment 71, MPR 53, effective September 18, 1946; Amendment 5, MPR 265, effective August 30, 1946; Amendment 16, 2d RMPR 270, effective September 9, 1946; Amendment 4, RMPR 561, effective September 6, 1946. 7 Sec. 6 (b) and (c), Price Control Extension Act of 1946 ; see above, p. 6. 8 RMPR 296: Amendment 11, effective August 2, 1946; Amendment 12, effective August 23, 1946; Amendment 13, effective September 11, 1946. RSR 14—B: Amendment 9, effective August 2, 1946; Amendment 11, effective September 6, 1946. 8 Amendment 66, MPR 53, effective August 23, 1946; Amendment 14, 2d RMPR 270, effective August 14, 1946. FPR 1: Amendments 13 and 14, Supplement 13, effective July 28, 1946; Amendments 1 and 3, Supplement 19, and Amendment 1, Supplement 17, all effective July 25, 1946. Price Increases • 19 in ceiling prices for imported nitrate of soda was granted on the same basis.10 Other Increases The Office granted a number of additional price increases during the quarter in order to conform to other provisions of the 1946 extension act. To meet the requirement that fish products, as well as fish, be priced at 1942 levels,11 ceilings for various species of canned tuna were raised. Following this action, increases were granted to fishermen for these species of tuna roughly equal to the increased prices in canned tuna, and increases at the fisherman level were granted on California sardines to encourage production and to provide the fishermen increases roughly approximating increases granted to salmon and tuna fishermen.12 Under that provision of the extension act which assured profits to processors or distributors of commodities made from a decontrolled agricultural commodity,13 maximum prices for certain dry corn products, were increased, as were prices for corn and blended sirups, macaroni, and breakfast cereals.14 Distributor mark-ups were increased during the quarter, in accordances with the mandate of Congress,15 on gum turpentine, meat, oranges, canned tomatoes, barreled malt beverages, coffee, and a variety of feeds and other food commodities.16 An important action taken during the quarter under the discretionary powers of the Administrator and not required by law, was an increase in sugar prices. Maximum prices of raw sugar were increased 1.37 cents a pound to permit the continued importation of the 1946 Cuban crop under the terms of the final agreement between the Governments of the two countries. As a result of this action, the maximum prices of refined sugar had to be increased 1.50 cents to 10 Amendment 65, MPR 53, effective July 31, 1946; Amendment 20, SR 14—F, effective August 19, 1946. Amendment 16, RPS 50; Amendment 21, SR 14—C; both effective August 14, 1946. Amendments 11 and 12, RMPR 205; both effective July 27, 1946. 31 Sec. 2 (i) ; see above, p. 9. 12 Amendment 6, MPR 299, effective August 23, 1946. MPR 579: Amendment 21, effective September 4, 1946; Amendment 20, effective August 20, 1946. 13 Sec. 1A (e) (10) ; see above, p. 7. 14 Amendment 17, MPR 305, effective August 2, 1946 ; Amendment 19, SR 14—C, effective August 1, 1946; Amendment 8, RMPR 291, effective August 30, 1946; Amendment 22, MPR 262, effective August 30, 1946; Amendment 2, Supplement 1, FPR 1, and Amendment 2, Supplement 11, FPR 1, both effective August 2, 1946. 18 Sec. 2 (t) ; see above, p. 7. 18 Amendment 4, RMPR 561, effective September 6, 1946; Amendment 21, SR 14-C, effective August 14, 1946; Amendments 15, RMPR 259; 189, MPR 426; 190, MPR 426; all effective August 23, 1946; Amendment 11, RMPR 74, effective August 30, 1946; Amendments 69, MPR 53; 38, MPR 148; 73, MPR 169; 74, MPR 169; 27, RMPR 239; 22, MPR 469 ; 6, MPR 574 ; all effective September 1, 1946. FPR 3 : Amendments 6, Supplement 1; 2, Supplement 2; 6, Supplement 3; 4, Supplement 4; 4, Supplement 5; 4, Supplement 7; 3, Supplement 8; 2, Supplement 9; 1, Supplement 10; and Amendments 10, RPS 73; 6, RMPR 173; 18, MPR 305; all effective September 3, 1946; Amendment 9, MPR 585, effective September 23, 1946; Amendment 5, FPR 1, effective October 5, 1946. 20 • Nineteenth Quarterly Report maintain the earnings position of the cane-sugar refining industry.17 In mid-June the Office had amended the restaurant regulation to permit the addition of customary margins to acquisition costs in the case of items consisting in whole or major part of decontrolled ingredients. It was therefore not necessary to amend that regulation to make it conform to the new act.18 Until meat was recontrolled on September 1, restaurants were permitted to establish ceilings on all meals by applying customary margins to their current costs. Following widespread industry protests against a roll-back of restaurant prices, the Office extended until September 16 the period in which recalculated prices might be used.19 At the close of the quarter plans were being made to permit ceilings to be based on current meat costs. TEXTILES AND APPAREL To conform with the requirements of the new act20 several regulations had to be revoked or amended. The maximum average price regulations were revoked (SO 108, SO 110, Rev. SO 113), as was the wholesaler percentage provision of the women’s nylon hosiery regulation (MPR 602). In addition, the regulation governing prices of finished piece goods was amended to abolish, as required by the new legislation, the price differential between integrated and independent converters. Both types of sellers were placed on the’ same basis in the pricing of finished goods, integrated converters to use the grey goods price on the day of sale of finished goods or when the grey goods are first sent to a finishing plant, whichever is earlier. The provision in the regulation limiting sales of finished piece goods by a cutter or manufacturer to 1,000 yards per calendar moilth had also to be revoked.21 The new act required that the ceiling prices of major items of cotton textiles must be not less than the sum of current cotton and conversion costs plus the average 1939-41 unit profit.22 After consultation with the industry, the Office concluded that the only feasible way to reprice cotton textiles currently was to do so once a month. For these monthly repricings an estimate was made of current conversion costs and average 1939-41 unit profit on the basis of a survey taken at the mills in 1944 and adjusted to reflect prevailing conditions. A new survey was immediately instituted at the mills to determine these two factors with greater accuracy. Current cotton costs were based on an average of the near month future prices of the New York Cotton Exchange for the 23d of the month through the 22d of the fol- 1T Amendment 3, MPR 16; Amendment 4, MPR 60; both effective September 18, 1946. 18 Sec. 2 (o) ; see above, p. 8, and also Eighteenth Quarterly Report, p. 15. 19 Amendment 17, Restaurant MPR 2, effective September 9, 1946. 80 Sec. 2 (j) (5), sec. 2 (p), and sec. 2 (w) ; see above, p. 8. 21 Amendment 52, MPR 127, effective September 4, 1946. 23 Sec. 3, Stabilization Extension Act, as amended; see above, pp. 7—8. Price Increases • 21 lowing month. Subsequently, at the suggestion of the industry, the period on which cotton prices were based was changed to the 8th through the 22d, beginning with the October repricing, in order to reflect more accurately the effect of the United States Department of Agirculture cotton crop forecasts, which are issued on the 8th. Cotton Textile Increases The first general repricing to reflect the new legislative requirements lifted mill ceilings by 17 percent or about 500 million dollars on an annual basis. The next adjustment, reflecting August raw cotton rises, caused a further increase of 2^ percent or about 90 million dollars. Another general revision was made to reflect a 5-cent-per-hour wage increase for cotton mill workers which was approved and first announced by the National Wage Stabilization Board September 5,1946. The latter increase, available only to mills paying the higher wage rates, increased ceilings by a little less than 2 percent or approximately 65 million dollars. At the end of the quarter another adjustment, this time reflecting September raw cotton rises, was ready for immediate issuance.23 In addition to the above adjustments required by law, the Administrator used his discretionary power to permit an increase on selected low-end items priced under the General Maximum Price Regulation which had maintained their March 1942 prices. Granted for the purpose of maintaining supply, the rise amounted to 90 percent of the increase in direct material and labor costs on each item since March 1942.24 As a result of these increases, ceiling prices for clothing and other products made of cotton textiles also had to be increased in order to maintain base-period profits by reflecting current cost of materials or in order to maintain premium differentials which had originally been offered to encourage production, chiefly in low-end categories. In the first group were staple work gloves (two increases); men’s and boys’ shirts, shorts, and pajamas; men’s and boys’ outerwear; work shirts (two increases); staple work clothing; and cotton rugs. Among increases in the second group were: Low-end apparel and men’s and boys’ shirts and shorts; staple knitted products; staple freeze-priced utility clothing; brassieres and girdles (base-period styles); and gummed cloth tape.25 28 Amendment 30, SO 131, effective August 5, 1946; Amendment 31, SO 131, effective August 14, 1946. SR 14-E: Amendment 51, effective August 15, 1946; Amendment 52, effective August 23,1946. Amendment 32, SO 131; effective August 30, 1946. Amendment 33, SO 131, and Amendment 55, SR 14-E; both effective September 18, 1946. 24 Amendment 50, SR 14—E ; effective August 9, 1946. ' “RMPK 506: Amendment 4, effective July 26, 1946; Amendment 5, effective September 11, 1946. Amendment 3, MPR 605, effective July 29, 1946; Amendment 4, MPR 572, effective July 30, 1946. RMPR 304 : Amendment 5, effective August 12, 1946; Amendment 6, effective September 26, 1946. Amendment 13, MPR 208, effective August 23, 1946; Order 5169, MPR 188, effective September 13, 1946. Amendment 7, 2d RMPR 578, effective 22 • Nineteenth Quarterly Report All increases were passed through to the consumer in full, under the distributors’ margin provisions of the new act.26 Leather The regulation governing leather prices was amended to require all importers of leather to obtain maximum purchase prices in line with the general level of domestic leather prices. In addition, many price increases were granted under the earnings standard for leathers produced from raw stock mainly of foreign origin, to compensate for increased costs of imported raw materials. Jobbers and wholesalers, who had formerly been required to absorb a small part of the dollar increase allowed to producers, were given the full amount of percentage increase in accordance with the mark-up provisions of the act.27 CONSUMER DURABLE GOODS The Office continued during the quarter to revise ceilings for reconversion goods in order to reflect advances in materials and labor costs arising since initial ceilings were set up. Among these actions werp increases for domestic oil burners and parts, metal household furniture, household mechanical refrigerators, children’s metal wheeled goods, Venetian blinds, carpet sweepers, metal upholstery springs and parts, and wire-tied innerspring mattresses. In addition, the individual adjustment order which provided for special adjustments on low-end items was amended to provide such increases for a large number of small electrical appliances.28 Increases were also granted to maintain premium ceilings previously allowed for production of low-cost items, in order to prevent diversion to more profitable lines, on school-room furniture, and on low-end furniture.29 Several nonreconversion products also received increases because ceilings, previously raised to maintain base-period profits, no longer reflected such profits, due to advances in materials costs. Among these were linoleum and felt-base floor and wall coverings, and cloth August 1, 1946; Amendment 5, SO 139, effective September 12, 1946; Amendment 3, MPR 605, effective July 29, 1946; Amendment 3, Rev. SO 154, effective August 23, 1946; Amendment 56, SR 14—E, effective September 20, 1946; Amendment 29, MPR 220, effective August 27, 1946; Amendment 14, RMPR 129, effective September 30, 1946. 28 Sec. 2 (t) ; see above, p. 7. 27 MPR 61: Amendment 5, effective July 26, 1946; Rev. Orders 13 and 14, both effective August 9, 1946; Order 16, effective September 13, 1946. 28 Amendment 24, Order 48, MPR 591, effective July 26, 1946; Rev. Order 8, MPR 188, effective August 12, 1946; Amendment 22, MPR 598, effective August 21, 1946; Rev. Order 4, MPR 188, effective August 30, 1946; Order 18, MPR 188, effective September 10, 1946; Amendment 3, Order 7, MPR 188, effective September 14, 1946; Amendment 10, MPR 548; Amendment 2, Rev. Order 5, MPR 188; both effective September 23, 1946. Amendment 8, SO 148, effective September 12, 1946. 29 MPR 188: Amendment 1, Order 5033, effective August 2, 1946; Amendment 3, Order 4800, effective September 11,1946; Amendment 4, Order 4800, effective September 23, 1946. Price Increases • 23 window shades and rollers. Other nonreconversion products were granted higher maximum prices to meet, the requirements of wageprice policy. These were cast-iron and enamel kitchenware, wood commercial furniture, felt carpet linings and rug cushions, eyeglass lenses and cases, and window and picture glass.30 Under the distributor margin provisions of the new act,31 all these increases were passed through to the ultimate consumer. In addition, this provision necessitated a great many increases at distributor levels in ceiling prices for consumer goods on which some absorption had previously been required. Among these were domestic cooking and heating stoves; domestic laundry machines; new household vacuum cleaners and attachments; home aluminumware; radios; portable typewriters; bicycles; metal beds, bedsprings, and cots; boxsprings and hand-tied boxspring constructions; upholstery springs, constructions, and accessories; small electrical appliances; outboard motors; clocks and watches; metal commercial furniture; chinaware; photographic equipment ; and oilcloth.32 The increases granted under the mark-up provisions ranged from 2.5 to 18.8 percent on appliances and equipment, 2.3 to 10 percent on housewares and hardwares, and 2 to 12 percent on home furnishings. BUILDING MATERIALS AND LUMBER The Office continued to concentrate its efforts on removing price impediments to maximum production for home construction needs. Metal castings, sheet steel, and merchant pig iron remained in short supply, and building materials fabricated from them remained under pressure. Continued shortages of raw materials in these and other areas of the industry constituted serious deterrents to efficient mass production of required building items. Within particular industries, the greatest supply and price pressures centered on low-end or low-profit product lines. In the absence of production directives, limited available quantities of critical materials were commonly incorporated into end-products which promised maximized profits. To meet this problem the Office made a number of discretionary increases, some of them under formulas for reconversion pricing, to 30 MPR 188: Amendment 1, Order 5000, effective August 19, 1946; Amendment 3, Order 4875, effective August 30, 1946. Order 5122, effective August 5, 1946; Order 5104, effective August 8, 1946; Order 5128, effective August 19, 1946; Order 5144, effective August 23, 1946. Amendment 62, Order 1, MPR 592, effective September 11, 1946. 31 Sec. 2 (s) and (t), see above, p. 7. 33 Amendment 8, MPR 64; Amendment 3, RMPR 86; Amendment 19, RMPR 111; Amendment 2, Rev. Order 1, MPR 188; Amendment 1, Rev. Order 1, Order 8, MPR 188; Amendment 4, MPR 599 ; Amendment 3, Order 1, MPR 599 ; Amendment 1, Order 12, MPR 188; Amendment 1, Order 16, MPR 188; Amendment 1, Rev. Order 1470, MPR 188; Amendment 5, 3d RMPR 213 ; Amendment 2, Order 17, MPR 188 ; Amendment 9, MPR 548 ; Amendment 4, Order 6, MPR 188 ; Amendment 1, Order 23, Order 6, MPR 188 ; Amendment 1, Order 15, MPR 188; Amendment 1, Order 14, MPR 188; Rev. Order 11, MPR 188; Amendment 3, Order 14, MPR 116 ; Amendment 2, Order 10, MPR 188; all effective August 19,1946. Rev. Order 157, MPR 478, effective August 12, 1946. 24 • Nineteenth Quarterly Report reflect higher costs of production. Among these were advances on domestic oil burners, builders’ hardware, fiber insulation board and insulating fire brick, wire nails, convector radiators, warm air furnaces, structural clay products, enameled cast-iron plumbing fixtures, and gypsum goods.33 In order to maintain base-period earnings, two other important increases were granted during the quarter. Ceilings for cast-iron soil pipe had to be raised to offset advances in pig iron prices, and an increase was authorized on copper tube fittings.34 Under the distributors’ margin provisions of the new act,35 all increases were passed through to the consumer. Besides the increases for items listed above, this provision required the Office to grant price increases in the general building-materials field, principally in brick, clay sewer pipe, and metal lath. Among the commodities and services also affected were asphalt roofing and asbestos-cement materials, portland cement, lead paints, stock millwork, Douglas-fir stock millwork, stock screen goods, jobber mill work sales, fir doors, and moldings. Items of mechanical building equipment which required price increases under the mark-up provisions were tanks and vessels, furnaces and radiation, brass trim, and stokers.36 Except for the mandatory pass-through of producer increases under the distributor-margin provisions of the act, all but one ceiling price increase in the, lumber field during the quarter were discretionary, granted to stimulate production of needed commodities. Here again, however, most of these actions were indirectly due to the provisions of the 1946 extension act, since prices previously raised to effect a smooth transition to a peacetime economy were no longer high enough to carry out such a purpose in view of mandatory higher prices on other production. 88 Order 48, MPR 591: Amendment 24, effective July 26, 1946; Amendment 27, effective August 21, 1946. Amendments 9, RPS 40; 6, MPR 413; 21, Order 48, MPR 591; 22, Order 48, MPR 591; all effective July 26, 1946; Amendments 26, Order 48, MPR 591; 10, RPS 40; both effective August 28, 1946; Amendments 51, Order 1, MPR 592; 52, Order 1, MPR 592 ; 42, RPS 49; all effective July 26, 1946; Amendment 35, 2d RSR 14, effective August 17, 1946; Amendment 40, 2d RSR 14, effective August 31, 1946; Amendment 21, Order 1, MPR 591, effective July 26, 1946; Amendment 25, Order 1, MPR 591, effective August 28, 1946; Amendment 63, Order 1, MPR 592, effective September 23, 1946; Amendment 59, Order 1, MPR 592, effective August 19, 1946; Amendment 27, Order 48, MPR 591, effective August 21, 1946; Amendment 49, Order 1, MPR 592, effective July 26, 1946; Amendment 61, Order 1, MPR 592, effective August 30,1946. 88 Amendment 7, RPS 100, effective August 13, 1946; Amendment 23, Order 1, MPR 591, effective August 27, 1946. 85 Sec. 2 (t) ; see above, p. 7. 88 SO 172, effective August 8, 1946; Amendment 60, Order 1, MPR 592; Amendment 24, RMPR 206 ; SO 179; all effective August 23, 1946. Amendment 11, RPS 45 ; Amendment 7, MPR 466; Amendment 19, MPR 224; Amendment 96, Order A—1, MPR 188; all effective August 23, 1946. Amendment 19, RMPR 293; Amendment 5, MPR 589 ; Amendment 9, MPR 381; all effective August 21, 1946. Amendment 13, MPR 525; effective August 23, 1946. Amendment 2, MPR 44; Amendment 4, MPR 601; both effective August 21, 1946. Amendment 1, MPR 96; Amendment 12, MPR 272; Amendment 28, Order 48, MPR 591; Amendment 26, Order 1, MPR 591; all effective August 23, 1946. Price Increases • 25 A number of increases granted were expected to aid the countrywide housing program. Among them were ceiling price rises on west coast peeler grade logs, all hardwood, hardwood flooring, Sitka spruce, western pine and Douglas-fir shop lumber, redwood, white and Norway pine, and softwood moldings.37 Production-incentive increases in fields other than housing granted during the quarter covered many types of shook and wooden containers and parts; southern pine car material and framing; grain and coal boxcar doors; pressure-treated poles and posts; striking tool and broom and mop handles; and wooden mine materials.38 Producers of west coast softwood logs were granted a ceiling price increase39 under that provision of the Price Control Extension Act of 1946 which required that current costs of production be returned to producers of at least 90 percent of softwood log and lumber output.40 AUTOMOBILES AND TIRES The most far-reaching price action in the automobile industry during the third quarter of 1946 was an increase in dealer prices in order to meet the provision of the new extension act which prohibited reduction of distributors’ peacetime mark-ups for reconversion goods until unit sales have reached the prewar rate for a period of 6 months.41 Ceilings were raised an average of 7.3 percent, with typical increases ranging from $69 to $293. An increase in dealers’ charges for preparing and conditioning automobiles and trucks, upon individual application, was also required under this provision of the new act.42 37 Amendment 24, RMPR 161; Amendment 23, MPR 155; both effective July 26, 1946; Amendment 16, MPR 223; Amendment 10, MPR 366; both effective August 17, 1946; Order 8, RMPR 97; Order 1, MPR 146; Order 1, MPR 155; Order 1, MPR 223; Order 3, MPR 368; Amendment 10, MPR 432; Amendment 7, MPR 458; all effective August 1, 1946; 2d RMPR 290, effective August 14, 1946; Amendment 8, 2d RMPR 222, effective August 26, 1946; Amendment 5, RMPR 94; Amendment 1, 2d RMPR 26; both effective September 4, 1946; Amendment 12, MPR 253, effective September 6, 1946; Amendment 3, 3d RMPR 219, effective September 10, 1946; Amendment 5, MPR 601, effective September 17, 1946. 38 Amendment 17, RMPR 186; Amendment 7, MPR 32; Amendment 4, MPR 485; all effective July 26, 1946. 2d RMPR 195: Amendment 5; Amendment 3, Order 8; Amendment 1, Rev. Order 11; Amendment 1, Rev. Order 12; Amendment 1, Rev. Order 13; Amendment 1, Order 14; all effective August 27, 1946; Amendment 2, Order 14; Amendment 4, Order 9; both effective September 30, 1946. Order 669, RMPR 136, effective August 17, 1946; Amendment 6, MPR 342, effective September 24, 1946; Amendment 17, 2d RMPR 19; SO 170; Amendment 4, MPR 483; all effective July 26, 1946; Amendment 3, MPR 491, effective iuly 30, 1946; Amendment 38, 2d RSR 14, effective August 20, 1946; Order 1, 2d RMPR 26; effective September 18, 1946; Amendment 5, MPR 558, effective September 3, 1946. 39 Amendment 25, RMPR 161, effective August 8, 1946. 40 Sec. 2 (v) ; see above, p. 8. 41 Sec. 2 (q) and (r) ; see above, p. 7. 48 MPR 594 : Amendments 2, Order 24; 1, Order 25 ; 1, Order 26 ; 1, Rev. Order 3; 7, Rev. Order 4; 6, Rev. Order 5; 7, Order 6; 6, Order 7; 6, Order 8; 7, Order 9; 6, Order 10; 4, Order 11; 7, Order 12 ; 5, Order 13; 2, Rev. Order 18; 2, Rev. Order 19; 2, Rev. Order 20; 2, Rev. Order 21; 2, Rev. Order 22; 3, Order 23; all effective August 12, 1946. Amendment 7, MPR 594; Amendment 3, RMPR 610; both effective August 23, 1946. 26 • Nineteenth Quarterly Report All Ford lines received an increase at the producer level ranging from 5.6 to 6.6 percent under newly relaxed rules governing adjustment in reconversion ceiling prices on the basis of over-all hardship, in accordance with a revision of the old pricing policy.43 The reconversion formula was reworked to reflect: (1) August 31,1946, materials cost; (2) the percentage increase between January 1,1941, and August 31,1946, in all factory labor cost, including administrative and selling salaries and listed fringe items but excluding merit increases, instead of January 1941 basic wage rates plus subsequent legal increases; and (3) the full amount of actual vacation pay and social security taxes of all hourly labor and salaried employees. A number of increases were also granted on various makes and models of trucks under the reconversion formula which reflected post-1941 labor and materials costs, with price advances ranging from 2 to 28 percent.44 Mandatory increases were granted, distributors of . all rubber tires to make ceiling prices reflect current costs of acquisition plus their March 31, 1946, mark-up.45 MACHINERY AND METALS Distributors of farm equipment and replacement parts were permitted to raise prices 4 to 10 percent46 in order to meet the farm equipment provision of the 1946 extension act which prohibited reduction of distributors’ peacetime mark-ups for commodities accounting for one-half or more of their 1945 gross sales, and for which deliveries in the first quarter 1946 were below those in the corresponding 1945 quarter.47 Many actions were also taken under the distributor-margin provision which required March 31 percentage mark-ups.48 Among these were increases on electric batteries and specified machines, parts and industrial equipment.49 The Office granted a number of increases under the industry-earnings standard which reflected post-1945 rises in production costs. The 48 MPK 594: Amendments 9, Rev. Order 4 ; 8, Rev. Order 5 ; 9, Order 6 ; and Amendment 8 ; all effective September 16, 1946. 44 MPR 610: Orders 4-8, effective August 23, 1946; Orders 10 and 11, effective August 30, 1946; Order 12, effective September 5, 1946; Order 13, effective September 6, 1946; Orders 14 and 15, effective September 12, 1946; Orders 18—20,.effective September 16, 1946; Order 21, effective September 23, 1946; Amendment 2, Order 1, effective September 13,1946 ; Amendment 3, Order 1, effective September 17, 1946. 48 Amendment 13, RMPR 143 ; Amendment 9, RMPR 528; both effective August 23, 1946. 48 Amendment 19, MPR 246; Amendment 13, MPR 133; both effective July 31, 1946. 47 Sec. 2 (s) ; see above, p. 7. 48 Sec. 2 (t) ; see above, p. 7. 48 Amendment 2, Order 641, RMPR 136; Amendment 20, RMPR 136; Amendment 1, Order 5054, MPR 188; all effective August 19, 1946; Amendment 51, RMPR 136; effective August 20, 1946 ; RMPR 136 : Amendment 1, Order 620 ; Amendment 4, Order 506 ; Amendment 2, Order 637; Amendment 2, Order 647; Amendment 1, Order 645; Amendment 1, Order 642 ; all effective August 23, 1946. Price Increases • 27 more important of these were for plastic products; bolts, nuts, and screws; hand tools; and construction machinery and equipment.50 Post-1945 production cost advances also led to raising reconversion ceilings for electric wiring devices, fixed capacitors, and radio and specialty transformers. Makers of grain-milling machinery were granted an increase to reflect rising production costs in order to offset impediments to production.51 To expedite the nation’s housing program prices were also raised for brass screw machine products, nonportable lighting fixtures and woodworking machinery.52 In the field of nonferrous metals considerable pricing uncertainties developed in lead during August, making it necessary for the Office to announce that no price increases beyond those granted in June were called for. The June rise, coupled with the subsidies paid on lead, complied with the requirements of the law, and further cost increases would be taken care of under the premium payment plan administered by an inter-agency committee. Moreover, the Reconstruction Finance Corporation continued to buy obtainable foreign lead and resell it at domestic ceiling prices. Serious withholding of lead continued, however, in the belief that ceiling prices would nevertheless be raised. The Civilian Production Administration therefore advised the Administrator that it would move at once to prevent the building up of excessive inventories. A compliance drive was thereupon instituted in order to check privately owned stocks and compliance with CPA inventory restrictions. A major price action involved the adjustment of the domestic silver ceiling. Pursuant to congressional action, the Treasury’s buying price for domestic silver had been raised from 71.11 cents to 90.5 cents per ounce. At the same time, the Treasury had been authorized to resell such silver at not less than the purchase price. In effect, the resale price was reported at 91.5 cents. In order not to interfere with the Treasury purchase and sale of silver, the ceiling price had to be raised to the Treasury’s selling price or 90.5 cents per ounce, whichever was higher. Since the removal of allocations, the industry had freely intermingled imported silver with domestic silver, thus making different ceiling prices unworkable. The adjustment in domestic ceiling prices was therefore extended to imported silver. At the same time, maxi- 60 Amendment 5, MPR 523; Amendment 3, RMPR 147; Amendment 14, SR 14—G; all effective July 27, 1946; Order 5105, MPR 188; MPR 614; both effective August 9, 1946; Order 676, RMPR 136, effective September 17, 1946; Amendment 1, Order 676, RMPR 136 ; effective September 23, 1946. 61 RMPR 136: Order 663; Amendment 47; Amendment 3, Order 572; all effective July 27,1946 ; Amendment 48, effective August 12, 1946 ; Order 658, effective July 26, 1946. 62 RMPR 136: Amendment 49 and Order 670, both effective August 8, 1946; Order 667, effective August 13, 1946; Amendment 2, Order 636; effective September 27, 1946. 28 • Nineteenth Quarterly Report mum prices for semifabricated silver articles and for silver scrap were revised to reflect the increase in the price of primary silver.53 In the copper industry the two-band price system, which had prevailed since June 3, was abolished. The reason for that system had ceased to exist because all the industry had settled its wage issues by granting approved wage increases so that an industry-wide wage pattern had been established. That pattern was in line with the wagecost factor used by the Office in arriving at the 14%-cents base copper price.54 In the metals field, the only adjustments made under the new act were to conform to the distributors’ margin provision. Ceiling prices were brought up for brass mill products, silver, copper, primary and secondary lead, and lead products or alloy. Under a long-time mandatory standard for adjusting maximum prices, ceilings were raised for pig iron; brass and bronze alloy ingot; and bolts, nuts, and screws. In both cases rising production costs since a recently permitted rise had made an increase necessary in order to maintain base-period earnings.55 Higher ceilings were also allowed at the warehouse level for galvanized, galvannealed, long-terne, and enameling carbon steel sheets; wire nails and wire; and on several alloy steel products to complete the pass-through of a producer rise allowed in March.56 Sales of iron and steel scrap to dealers were brought under price control for the first time in September to halt hoarding by speculators and to assure maximum flow through normal channels. All prices were at June 30 levels except for a premium rise on cast-iron scrap.57 PAPER, CHEMICALS, AND FUELS The extreme shortage of paper products led to a host of ceiling price increases during the quarter which were granted by the Administrator under his discretionary power to facilitate effective transition to a peacetime economy. In virtually all cases rising production costs, raw material as well as labor, constituted an impediment to production. Thus prices were advanced for newsprint; woodpulp; paperboard and corrugated and solid fiber products; and a variety of papers and paper containers. In only three cases, however, did higher production costs threaten base-period profits to the extent that the “ Amendment 2, RMPR 198, effective August 1, 1946. Amendment 3, MPR 198; Amendment 16, MPR 82 ; both effective August 23, 1946. M Amendment 7, RPS 15, effective August 2, 1946. M Amendment 3, MPR 408 ; Amendment 3, RMPR 198 ; Amendment 8, RPS 15 ; Amendment 9, RPS 69 ; Amendment 3, MPR 70; Amendment 15, SR 14—G; all effective August 23, 1946. Amendment 13, RPS 10, effective July 27, 1946; Amendment 6, MPR 202, effective August 27, 1946. 66 Amendment 41, RPS 49, effective August 19, 1946; Amendment 3, MPR 147, effective July 27, 1946; Amendment 42, RPS 49, effective July 26, 1946; see also Seventeenth Quarterly Report, pp. 30-32. w MPR 4: Amendment 7, effective August 26, 1946; Amendment 8, effective September 11, 1946. Price Increases • 29 increase was mandatory under the industry-earnings standard. These were for glassine and greaseproof papers, packaged facial tissue, and toilet tissue and paper towels. All increases were passed through to buyers under the distributor-margin provisions of the act.58 The situation with regard to ceiling price adjustments for chemical products was similar. Increases granted to remove impediments to expanded supply reflected higher raw product costs for the most part and in a few cases approved wage increases. Principal advances were for lithopone; shellac; synthetic resins; chlorine, caustic soda and soda ash; vulcanized fiber and plastic thermosetting laminates; and rubber drug sundries.59 On the last two items, the increase was necessary under the industry-earnings standard. Solid fuel prices went up during the quarter to permit solid-fuel dealers, bunker-fuel suppliers, and briquet producers, to reflect in their maximum prices increased transportation rates arising from the railroad freight rate increase granted by the Interstate Commerce Commission and from the decontrol of contract water carrier rates between Great Lakes ports.60 Dealer prices were also increased on delivered sales of anthracite and coke, and bituminous coal and briquets, to meet the distributormargin provisions of the new act, raising the nation’s annual coal bill by approximately 22 million dollars.61 PRICE SUMMARY OF THE QUARTER Over the quarter as a whole prices moved up at all stages, irregularly in the primary markets and at wholesale, where the restoration of controls brought a sharp though temporary dip, and steadily at retail. In September consumers’ prices were 10 percent above their June level, and at the end of September wholesale prices and spot market prices were 10 and 22 percent, respectively, above those prevailing at the end of June. “Amendment 13, RMPR 130, effective August 22, 1946. Amendment 6, RMPR 114, effective September 5, 1946. RMPR 32: Amendment 6, and Amendment 7, both effective July 26, 1946; Amendment 9, effective August 19, 1946. RMPR 187: Amendment 8, effective July 26, 1946; Amendment 9, effective July 27, 1946; Amendment 10, effective August 9, 1946; Amendment 12, effective September 16, 1946. RMPR 129: Amendment 12, effective August 18, 1946 ; Amendment 13, effective September 18,1946. Amendment 7, MPR 449, effective July 26, 1946. Amendment 6, MPR 359, effective July 30, 1946. Amendment 7, MPR 451, and Amendment 11, MPR 450, both effective August 16, 1946. Amendment 3, MPR 567, effective August 2, 1946. Amendment 7, MPR 349, effective August 5, 1946. Amendment 2, RMPR 266, effective August 23, 1946. Amendment 42, 2d RSR 14, effective September 18, 1946. 69 Amendment 5, RPS 80, effective July 26, 1946. MPR 245: Amendment 1, effective August 6, 1946; Amendment 2, effective August 15, 1946. Amendment 13, MPR 406, effective August 27, 1946. Amendment 23, SR 14-F, effective September 16, 1946. Amendment 12, MPR 406, effective August 12, 1946. Amendment 4, RMPR 300; Amendment 3, RMPR 301; both effective August 14, 1946. "Amendments 46 and 47, RMPR 122, effective July 26, 1946 and August 19, 1946. Amendments 33 and 34, MPR 189, effective July 26, 1946 and August 19, 1946. Amendments 38 and 39, MPR 121, effective July 27,1946 and August 23,1946. 61 Amendment 48, RMPR 122, effective August 23, 1946. 725854—47-------3 30 • Nineteenth Quarterly Report These price increases widened the gap, described in the preceding report,62 between the movement of prices and wages. Average weekly earnings of factory workers in dollar terms increased 4.8 percent during the quarter. The rise of 10 percent in consumers’ prices, however, turned this in real terms into a decline of 4.2 percent. The total decline in real terms since January 1945 was thereby increased to 16.7 percent. Workers in durable goods manufacturing similarly fell behind during the quarter and in September had real weekly earnings 21.2 percent lower than in January 1945. The other critical relationship between wages and prices63 concerns the prices of manufactured goods and the hourly cost of labor in manufacturing. The disparity between the movements of these prices and wages was sharply increased during the quarter. The following table carries through September the comparisons shown through June in the previous report. Comparison of Increases in Average Hourly Earnings and Wholesale Prices in Selected Industries From Month of Wartime Earnings Peak]to September 1946 Industry Ratio of labor cost to value of product2 (percent) Percentage increase to September 19461 Ratio of actual to offsetting price increases Average hourly earnings3 Offsetting price increase4 Actual price increase 5 15 industries6 16.1 15.7 2.5 17.9 7.2 Group A: Less-Than-Offsetting Price Increases Auto tires and tubes 15.5 14.3 2.2 0 Group B: More-Than-Offsetting Price Increases Petroleum and products.. 5.2 13.5 0.7 13.7 19.6 Food ~ 8.6 14.9 1.3 24.0 18.5 Hides and leather products 21.2 14.3 3.0 20.1 6.7 Iron and steel 19.9 11.5 2.3 14.5 6.3 Textile products 21.5 21.1 4.5 26.2 5.8 Agricultural implements 21.0 10.3 2.2 11.4 5.2 Paper and pulp! 15.1 18.9 2.9 11.8 4.1 Lumber ...1 27.7 14.0 3.9 15.0 3.8 Cement 16.4 13.6 2.2 7.1 3.2 Chemicals and allied products.. 9.4 11.2 1.1 3.3 3.0 Brick and tile 33.1 23.8 7.9 15.4 1.9 Furniture 24.9 13.4 3.3 5.9 1.8 Bituminous coal 59.2 15.2 9.0 10.7 1.2 Anthracite 56.7 19.6 11.1 11.5 1.0 i Measured from the month of highest average hourly earnings (August 1945 or earlier) in the industry. * As of 1939, Bureau of the Census. 3 Bureau of Labor Statistics series, gross average hourly earnings. 4 Product of average hourly earnings increase and labor cost ratio. 3 Bureau of Labor Statistics series, monthly wholesale prices. • Data refer to the selected industries—accounting for 85 percent of factory and mine production— which comprise all for which the relevant BLS and Census data suitably correspond. Percentage increases shown are weighted averages of the 15 industry increases. For manufacturing as a whole, the percentage changes in the averages are distorted by shifts among industries, viz, average hourly earnings increased 7.6 percent, the calculated offsetting average price increase averages 1.2 percent, the actual increase of wholesale finished goods prices was 5.9 percent. 62 See Eighteenth Quarterly Report, p. 9. 63 For discussion, see Eighteenth Quarterly Report, pp. 10-11. Price Increases • PRICE MOVEMENTS- -1945 and first 9 months of 1946 Index of spot prices has been converted from daily to monthly averages through June 1946, to weekly averages thereafter. Wholesale price index (weekly) converted to monthly averages through June 19 46. SOURCE: Bureau of Labor Statistics. 32 • Nineteenth Quarterly Report APPENDIX TO PRICE CHAPTERS Table 1.—Actions Extending or Resuming Price Control, July 26—Sept. 30, 1946 Effective date Commodity Level of action July 26,1946 Imported leather.. Importer. Aug. 2oj 1946 Pilchards (Washington and Oregon) Fishermen. Aug. 23; 1946 Tank oils (cottonseed and soybean)1 All. Aug. 26^1946 Iron and steel scrap (prepared) - Dealer purchase. “Do '. Mixed feeds*. All. Aug. 30,1946 Animal product feeding stuffs1 Do. “DoJ. Shortening, cooking and salad oil, margarine, mayonnaise Processor. and salad dressing? Sept. 1,1946 Dressed beef, veal, lamb and mutton, and pork i Slaughterer. Do Lard 1 : Processor. Do Livestock >. Producer. Sept. 3,1946 Cottonseed products1 AU. Do. Distiller’s dried products1 Do. Do. . Fish meal and fish scrap1 Do. Do . . Linseed products1 Do. Do Malt dried grain, dried brewer’s grain, malt cleanings, malt Do. hulls, and malt sprouts? Do Oat mill byproducts1 Do. Do Soybeans1 Do. Do Wet corn milling byproducts for animal and poultry feeds >.. Do. Do Wheat mill feeds •„*_ Do. ept. 4,1946 Shortening, cooking and salad oil, margarine, mayonnaise Wholesaler. and salad dressing? Sept. 5,1946 Dressed beef, veal, lamb and mutton, and pork i Do. * Do.'. Lard1 1 Do. Sept. 9,1946 Canned meat1 Retailer. * Do.' . Flaxseed 2 All. Do Lard, shortening, cooking and salad oil, margarine, mayon- Retailer. naise and salad dressing? Do Unprocessed dry edible beans Grower. Sept. 10,1946 Fresh or cured meat * Retailer. Sept. 11,1946 Iron and steel scrap (unprepared) Dealer purchase. Sept. 23i 1946 Acidless tallow and tallow oil (sold to soap makers) Producer. i Resumed by order of the Price Decontrol Board. ’ Resumed by order of the Secretary of Agriculture. Table 2.—Dollar-and-Cent Prices, July 26—Sept. 30, 1946 Effective date Commodity Level of action July 26,1946. Distiller’s dried byproducts (of agricultural commodities other than grain). Producer. Do Gypsum partition tile and hollow block (New Brighton and Wheatland, N. Y., and Philadelphia, Pa.). Do. Aug. 5,1946. Carded military twUls (sold for civUian use) Do. Aug. 19,1946. Tire spUtting (beadless carcasses) Processor. Aug. 21,1946. Southern pine stock mUlwork specialties Producer. Aug. 28,1946. Bicycle tires and tubes (replacement)— Do. Do Imported green Spanish olives AU. Sept. 6,1946. Redwood lumber (ungraded log-run) — MUI. Sept. 11,1946. Trucks (Corbitt).— AU. Sept. 21,1946. “Java, long” rice Country shipper and miU. Appendix to Price Chapters • 33 Table 3.—Price Increases, July 25-Sept. 30, 1946* Effective date Commodity Level of action Amount of increase July 25,1946 Do — Canned com, peas, and tomatoes. Frozen com or peas All Processor: 6 to 20 cents per do dozen No. 2 cans. RetaUer: 1 to 2 cents per can. Processor: 1 cent for 12-ounce July 26,1946 Do Bituminous coal (sold direct for bunker fuel). Brass shower valves and parts (single nonmixing type). Builders’ hardware (general door and window hardware, and hingesand butt bulges). Convector radiators Supplier package. RetaUer: 1 to 2 cents per pack. 18 cents to $1.09 per ton at ports. Producer: 22.5 percent over Oct. 1,1941. Producer: range from 10 to 50 All Do do Do do .... percent. Producer: 10 percent. Producer: 1.7 percent per board-foot. 10 percent. Producer: $2.50 per ton. Do Cork insulation board do.— Do Corrugated and solid fiber products. Cream faced gypsum liner board- Distillers’ dried byproducts (of agricultural commodities other than grain). Electric temperature controls (automatic water heaters). Domestic oil burners and parts Producer Do All Do do Varied. Do.. do 15 percent. Producer: 5.5 percent. Producer: $2 to $9 per M square feet. Varied. Do do Do Fiber insulation board products (emergency housing program). Finished piece goods do Do . Jobber and wholesaler1 Do Finishing* and packing of paperboard (such as bottle cap, hood, cover, and lid stock, milk bottle stock, and solid bleached). Grain and coal doors (for box cars, and made of hemlock, and other northern softwood, northern hardwood, western softwood, and eastern and southern softwood and hardwood (except southern pine)). Grain-milling machinery and equipment. Groundwood specialty papers (supercalendered rolls). Groundwood specialty papers (sheeted). Groundwood specialty papers (trimming, packing, and sealing). Gypsum partition tile and hollow block (New Brighton and Wheatland, N. Y., and Philadelphia, Pa., plants). Imported leather2 All 5 cents to $1 per hundred- Do- Producer weight. 15.6, 2, 16.2, and 7.6 percent, respectively. 11 percent for temporary coal doors. Producer: 8 percent. 15 cents per hundredweight. 5 cents per hundredweight. Up to 50 cents per hundredweight. Producer: about 2 cents per square foot over March 1942 for the 3-inch size. Varied. Do AU Do Producer.. Do do Do do Do AU Do.. do Do Industrial wirebound wooden Producer 16 percent.3 Producer: 20.1 percent on delivered sales, 21.6 percent on f. o. b. plant sales. Producer: about $7 per ton. Average 50 cents per hundredweight. 25 cents per hundredweight.4 Producer: $1 per net ton.* 15 cents per hundredweight. Retailer: up to 21 percent. 1 to 3 cents for items previously selling at 35 cents or less. Do boxes. Insulating firebrick AU Do Jute liner, bogus corrugating medium, and chestnut medium paper board. Kraft and manila envelope paper (sheeted). Kraft wrapping paper .(sheets and counter rolls). Lime (except agricultural) do Do Producer Do do Do AU Do Lithopone Producer Do Low-end auto seat covers AU Do Low-end china or pottery RetaUer •Excludes price increases granted under individual company adjustment provisions. 1 Applies to jobbers and wholesalers selling on an adjustable pricing basis between Aug. 7, 1945, and Feb. 26, 1946. 2 Contracts entered into prior to this action are unaffected if goods are landed by Aug. 25. 3 Temporary increase. 4 Continuation of increases due to expire July 1,1946. 8 Producers east of the Rocky Mountains only. 34 • Nineteenth Quarterly Reoprt Table 3.—Price Increases, July 25—Sept. 30, 1946*—Continued Effective -date Commodity Level of action Amount of increase July 26,1946 Do North central hardwood lumber All Producer: average 5.4 percent. Retailer: average 8 percent. Producer: 5 cents per barrel. 4 percent for tag and file and 9 (except timber or construction items, and cottonwood, soft elm, quartered and plain sycamore). Packaged cement (States east of Montana, Wyoming, Colorado, and New Mexico). Paperboard (tag, file folder, and food container stock, and related items). Photographic equipment do Do. Producer Do. do percent for other. Indeterminate. Do. Pulp-lined boxboards All Producer: $2 per ton. Producer: 1% cents per pound of primary lead contained in each gallon. 2 cents per barrel.® Producer and wholesaler: about Do Pure lead pigment paint do :. Do Rough rice (except grown in California). Rubber heels and soles (repair shop trade). Shoes i Producer Do All Do do 10.5 percent. Retailer: 5 cents for heels. Producer: about 2.4 percent. Retailer: about 8 percent. $8 and $5, respectively. 6 cents per ton on rates of $1 per ton or less and 8 cents on rates over $1. Indeterminate. Do. Shortleaf and longleaf southern pine car material and framing. Solid fuels Mill Do Dealer Do Specialty transformers and electric motors. Standard wire nails and smooth All except producer do Do 7 to 15 percent. Retailer: 1 to 6 cents per pair. 10 percent. About 8.2 percent. Producer: 13.2 percent. 10 percent. $7.50 per 1,000 feet log scale. $7.50 per M b. m.7 Average about 10 percent f. o. b. point of production. Producer: 12 percent for bearings; 10.5 percent for balls over October 1941. Producer: 4.6 percent. $2 per gross ton. Varied. Do merchant quality wire. Staple work gloves.. All Do Steel shipping containers (steel lead pails of less than 1 U. S. gallon capacity). Thermostats (for domestic gas and electric ranges). Vitrified clay sewer pipe and allied products (west central, Rocky Mountains, and southern areas) Waterproof rubber footwear Producer Do do . Do All Do Retailer Do West coast peeler grade logs .. Producer... Do Western agricultural shook do. July 27,1946 Do Ammonium sulfate (produced in States east of the 100th meridian). Antifriction bearings and metal balls (except automotive). Bolts, nuts, screws, and rivets... All .. ..do Do do Do Pig iron. .’ Producer Do Briquets or packaged fuels do Do Construction machinery and equipment. Copper sulfate (monohydrated). Electric wiring devices do. 10 percent over October 1941.8 Producer: 90 cents per hundredweight on lots of less than 30 M pounds. Producer: average 16.3 percent over Oct. 1,1941. Producer: 8 percent. Producer: 16.5 to 27 percent. $5.50 per ton f. o. b. port warehouse. Varied. Do All Do do Do Elameproof cotton insulation .. ..do Do Generator sets (electric motor, engine drive, and turbine driven). Nitrate of soda and nitrate of do Do do Do soda-potash. Paperboard folding and set-up boxes and inner packing materials. Plastic products (sold as parts, components, or subassemblies). Producer Do do About 5.9 percent. 'Excludes price increases granted under individual company adjustment provisions. 6 On each J4o of 1 percent of moisture content below 17 percent and down to 14. 7 Extension of previous increase due to expire June 30. 8 Extension of increase due to expire July 15,1946. Appendix to Price Chapters • 35 Table 3.—Price Increases, July 25—Sept. 30, 1946*—Continued Effective date Commodity Level of action Amount of increase July 27,1946 Do.. Do Do July 29,1946 Do July 30,1946 Do Do— Do Do July 31,1946 Do Do Aug. 1,1946 Do Radio and specialty transformers. Superphosphate _ _ Treated bituminous coal (eastern Pennsylvania). Wire and cable (except armored). Men’s and boys’ shirts and shorts (low-end items). Men’s and boys’ shirts, shorts, and pajamas. Liquid-tight paper cylinder containers. Men’s and boys’ outerwear (mackinaws, leather coats and jackets, heavy wool shirts, and lined cotton sport jackets). Pressure preservatively treated fence posts (sold in lots of less than 500). Pressure treated poles (in lots of less than 5,000 pounds). Yellow pine cross arms Farm equipment and replacement parts. Imported commodities (gloves, handbags, handkerchiefs, infant’s wear, leather shoes, luggage, and linen, woolen, and worsted piece goods, except those under listed regulations). Raw linseed oil and linseed oil products (including imports). Com products (bulk com starch and dextrine, bulk com simp (unmixed) and erode com sugar, bulk com sirup solids, and bulk refined com sugar and dextrose). Hardwood flooring lumber and flooring (1J4 inch and thinner home flooring lumber in No. 2 common and No. 3 common pecan; No. 2 common and No. 3 A common plain red oak, plain white oak, hard maple, birch, and beech; and inch and thinner residential flooring made from these species and grades). Low-end garments made under CPA priorities (except women’s, misses’, or juniors’ rayon slips with applicable CPA cutoffs above those in the regulation and selling maximums at or below CPA tops, and professional, institutional, and commercial uniforms made of cottons for which CPA has specified no “current prices") Packaged com starch and blended sirups. Silver [(standard commercial bars). Bread and certain baked goods... AU do — Producer All except retailer All do Producer All Treating plant Retail lumber yard Producer... All except producer... Importer and wholesaler. Processor Producer.. — AU Fluorescent transformers, 20 percent; radio transformers with fixed iron core, 33 percent; all other transformers, 27 percent; ail over October 1941. Producer: average about $1 per ton. 10 cents per ton? Varied. Producer: 10 percent.1® Producer: 11 percent. 15 percent. Producer: 8 percent. 10 percent and 10 cents per ton for each month of buyer requested storage in excess of 6 months. 25 percent. m percent. Dealer: 4.5 and 10 percent, respectively. Varied. 1.3 cents per pound. $2.15, $2.12, $2.34, over Apr. 11, and $3.27 over Mar. 22, per hundredweight, respectively. Producer: 5 percent. Do Do Do Aug. 2,1946 do. 1 do Importer and producer. All Varied. Indeterminate. Varied?1 Baker: 1 cent for bread and bread-type rolls, and 15 percent for biscuits, crackers and cookies. * Excludes price increases granted under individual company adjustment provisions. 8 For buyer requested treatment by chemical or oil. io This is in addition to 11 percent granted all producers. u May take 19.39 cents per fine troy ounce, or the difference between the Treasury’s selling price'and the former 71.11 cent maximum. 36 • Nineteenth Quarterly Report Table 3.—Price Increases, July 25-Sept. 30,1946*—Continued Effective date Commodity Level of action Amount of increase Aug. 2, 1946 Do Do Do Do Do Do — Breakfast cereals (except com flakes, puffed wheat, and puffed rice). Bulk sulfate of ammonia (except 11 western States).” Dry milling products (flour, meal, grits, and hominy). Flour— Glassine and greaseproof papers.. Macaroni and noodle products... Rayon lining materials. AIL l.„ Producer All Miller All do Producer Retailer: 1 to 3 cents per package. About 10 percent. Producer: $1.10 per hundredweight. Retailer: Ito2cents per pound for meal and grits. $1.11 east of Rocky Mountains and $1.24 on the west coast. Producer: 50 cents per hundredweight. Processor: 2.8 cents per pound. Retailer: about 2 cents on 8-ounce package of macaroni, and 1 cent for smaller-size packages of noodles. 10 percent.” Do Schoolroom furniture (low-end).. All Producer: about 5 to 10 percent. Producer: 5 percent. Producer: about 17 percent. Retailer: about 5 to 8 percent for apparel items, and about 17 percent for household linens and piece goods. Varied. Do. Producer: $2.40 per unit. Producer: 1.4 percent. 6.5 to 30.0 percent. Producer: 1 to 2J4 cents per pound. $3 per M feet log scale. Producer: 7 percent for chairs, and 11 percent for desks and tables. Producer: 10 percent. Producer: 4.5 percent. Producer: 27.3 percent. Varied. Aug. 5,1946 Do Do Aug. 6,1946 Do. Aug. 8,1946 Do.. Do Do Do Aug. 9,1946 Do.. Do Do Cast-iron and enamel kitchenware (home). Cotton textiles (basic fabrics).... Pulp, paper, and paper products (except tissue paper products and paper towels). Unbleached shellac (from India) Upholstered dual-purpose sleeping equipment. Brass screw machine products Building and construction materials m (a^2 inch asphalt coated and impregnated sheathing, cork insulating board, sewer pipe, line, and 7 specifications of fiber insulation material). Bushings and journal and sleeve bearings (nonferrous). West coast softwood logs (except No. 2 wood logs and culls). Wood commercial furniture.—... Hand tools (farm and garden implements, and cement, brick, tile, masonry, and plaster workers’ tools). Hand tools (shovels, spades, and scoops). Leather (raw goat and kid skin). Mixed fertilizer materials do do All except producer All... do do All except producer... All Producer AU. do do do Retailer Do Do Do Aug. 12,1946 Do Mixed fertilizers and granulated triple superphosphate. Paper pails and paraffined cartons. “Pure Pak” milk bottle blanks (except sold on west coast). Aluminum wire and cable (aluminum steel reinforced transmission line cable, weatherproof aluminum wire, and insulated aluminum wire and cable). Fixed capacitors AU- Producer do AU_. do Reseller: 6 to 11 percent.' 75 cents per M 1-pound cartons; 9 percent for 2-, 3-, 4-, and 8-pound cartons; and 5 percent for paper pails. 7 to 16 percent. Producer: 12.0, 17.5, and 18.0 percent, respectively. Producer: approximately 8 percent. ♦Excludes price increases granted under individual company adjustment provisions. 18 Sales to other than fertilizer manufacturers. ” Extension of increase scheduled to expire June 30. >< Resellers under area orders. Appendix to Price„Chapters • 37 Table 3.—Price Increases, July 25-Sept. 30,1946*—Continued Effective date Commodity Level of action Amount of increase Aug. 12,1946 Do Flannel work shirts Metal household furniture All Varied. Producer: 6.5 percent. Average 7.3 percent. Wholesaler: 13.5 percent. 8 and 12 percent, respectively. 10 percent. Producer: 11 percent over October 1941. Producer: approximately 2 percent. Producer: 10 percent. Retailer: up to 2 cents per pound. About 8.3 cents per pound. Roaster and processor: 10H cents per pound of pure roasted coffee. Producer: about 10 percent. Average $4.75 per Mb. m. 2 cents per item. Indeterminate. Average 12.5 percent for combed yams, and 16 percent for carded. 1 cent for glasses 8 ounces or larger and for 7- to 12-ounce bottles and cans; and 2 cents for 32-ounce bottles. Producer: $7 to $24 per ton. Producer: 19 percent over October 1941. 5.6 percent. Varied. Producer: 8.6 percent abov October 1941. Indeterminate. Varied. Average about 9.4 percent. Indeterminate. Retailer: 3.5 percent. Retailer: 11.6 percent. Producer: $2 per M f. o. b. plant for standard and $2.50 for oversize. Wholesaler: 0.9 to 3.1 percent. Retailer: 2.3 to 9.6 percent. Producer: 8.5 percent. Retailer: 2.5 percent on door-to-door sales and 1.5 on other. Retailer: 6 and 2.5 percent, respectively. Varied. 10 percent. Producer: 8.6 percent. Producer: 6.4 cents per gallon. Retailer: average 3.5 percent. Retailer: 4 percent. Retailer: 3.8 percent. $1.50 to $4 per ton. do Do. New automobiles (except Crosley). Oilcloth (except wall oilcloth).... Vulcanized fiber and plastic thermosetting laminates. Battery repair and replacement parts (sold by producers of the complete product). Carbon products (articles for electrical and mechanical use except on electric furnaces and electrolytic cells). Cast iron soil pipe and fittings... Dealer Do All except producer... Producer Do Aug. 13,1946 Do do All Do do.... » Do Nonportable lighting fixtures do Aug. 14,1946 Do Dry edible beans (1945 crop) do Green coffee (ex-dock New York). Roasted coffee products Importer Do Alli — Do Rubber drug sundries do Do Sitka spruce lumber Mill Do Tubs, kits, pails, and buckets.... do Aug. 15,1946 Do Bleached shellac All Dyed cotton yams Producer Aug. 16,1946 Do Beer (on-premise consumption).. Low-end book and writing papers Boxes and covers for electric outlets and switches. Household semi-vitreous china and pottery (California.). Northern and northeastern hardwood lumber (direct mill sales). Truck trailers Operators of bars, taverns, restaurants, and hotels. All Aug. 17,1946 Do do Producer Do Retailer Do All Do Upholstered furniture do Do. Wire nails All except producer Producer Aug. 18,1946 Aug. 19,1946 Do Bleached sulfate waxing paper (100 percent sulfate grades). Batteries All except producer... dn Bicycles (except mail-orders) Do Boxsprings and hand-tied box-* spring constructions. Clay building brick (produced in Hudson River area). Clocks and watches (3 price groups). Felt carpet linings and rug cushions. Home aluminumware14 (branded sheet) Home aluminumware (cast and unbranded sheet). Household equipment (domestic cooking and heating stoves, domestic laundry machines, and new household vacuum cleaners and attachments). Industrial electric storage batteries. Industrial rubberized protective clothing. Linseed replacement oil do All Do Do All except producer All Do Do All except producer do Do Do do Do do Do All Do do Do. Metal beds, bedsprings, and cots. Metal commercial furniture All except producer do Do Do Outboard motors do Do Paperboard (certain chip and news grades). Producer * Excludes price increases granted under individual company adjustment provisions. u Only items priced before June 17, 1946. 38 • Nineteenth Quarterly Report Table 3.—Price Increases, July 25-Sept. 30,1946*—Continued Effective date Commodity Level of action Amount of increase Aug. 19,1946 Do Photographic equipment All except producer do Retailer: 6 percent. Retailer: 8.6 percent. Retailer: 3.0 and 1.5 percent, respectively. 7 to 13 percent. Distributor: 1.5 percent. Retailer: 3.8 percent. Distributor: 1.5 percent. Retailer: 3.0 to 4.3 percent. Supplier: 6 cents per net ton. Dealer: indeterminate. Varied. 15 to 35 cents per hundredweight. 1.5 percent. Retailer: up to 11.7 percent. 3 percent. Retailer: per No. 2^ can of apricots, 2 cents; yellow cling peaches, 1 cent; California Bartlett pears, 7 cents; California fruit cocktail, 4 cents. Indeterminate $8 per ton. Indeterminate. 7 percent. Producer: 4 to 31 cents per barrel. Producer: 12 percent. 6 and 9 percent, respectively. Producer: about 10 percent. 6 and 10 percent, respectively. Producer: 3.5 percent. About 5.4 and 24.8 percent, respectively. 3 ana 5 percent, respectively. Indeterminate. About 5 to 7 percent. Carlot purchaser: 10 cents per net ton. Retailer: 30 cents. $1.35 per net ton for handdrawn, and $1.25 for machine drawn. Carlot purchaser: 9 cents per net ton. Retailer: 18 cents. $7 per ton. 3 and 1 percent, respectively. 2 percent. Varied. Portable typewriters - Do Radios (sold in retail stores and by distributors). Semi-vitreous china and'pottery.. do Do do Do Small electrical appliances (branded items with uniform retail maximums). Small electrical appliances (unbranded items). Solid fuels (suppliers of bunker fuel except at ports on Lake Erie and Lake Ontario and operators on the United States bank of Lake Superior arid the west bank of Lake Michigan north of and including Waukegan, Ill.). Steel mill products (alloy steel screen cloth, nails, brads, staples, and bale tie wire). Steel mill products (galvanized, galvannealed, long terne, and enameling carbon steel). Upholstery springs, constructions, and accessories (sold by wholesale jobbers only). Window shades and rollers do Do do Supplier and dealer... Warehousemen Do Do Do do Do Retailer Do All except producer... Jobber All Do Wood radio cabinets (less than 3 percent of total output). Canned fruits (1946 and later packs). Machines, parts, and industrial equipment (except sharpening and filing equipment and machine tools). Pilchards (California, Washington, and Oregon). Stock stair parts Aug. 20,1946 Do Wholesaler16 Do Fishermen Do All do Do Striking tool handles Aug. 21,1946 Do Cement (delivered to certain points in southern Florida). Distribution transformers do .. .do Do.. Douglas-fir doors and stock millwork. Enameled cast-iron plumbing fixture ware. General stock mill work Jobber and retailer All Do Do Jobber and retailer.— All Do Household mechanical refrigerators. Plug fuses Do Wholesaler and retailer. Jobber and retailer Chandler ’ Do Screen goods Do Slop-chest supplies Do Aug. 22,1946 Do Western pine moldings Jobber Anthracite, coke, and Bernice and Virginia semi-anthracite. Beehive oven coke (produced in Connellsville district, Pennsylvania.). Bituminous, lignite, briquettes, packaged fuel, ana other semianthracite. Newsprint (imported and domestic). Asbestos cement roof shingles and accessories, and asbestos cement siding shingles and accessories. Asphalt and tarred roofing products. Automobiles and trucks (retailers’ handling charges). All except producer... All 17 Do All except producer... Producer Do - Aug. 23,1946 Do All except producer... do Do Retailer •Excludes price increases granted under individual company adjustment provisions, w Brand name sellers who do not process or fabricate. w Except distributors of furnace coke. Appendix to Price Chapters • 39 Table 3.—Price Increases, July 25-Sept. 30, 1946*—Continued Effective date Commodity Level of action Amount of increase Aug. 23,1946 Do Brass mill products Brass plumbing supply and Distributor 3 percent. All except producer... 3 percent. Do waste fixture fittings and trimmings. Byproduct and retort gas coke (except for use in foundry cupola or blast furnace). Canned albacore, light meat Specified distributors. Varied. Do „ . All Caimer: 50 cents for albacore Do „ tuna, bonito and yellowtail. Cast-iron boilers and radiation... All except producer... and $1 for others, per case of 48 No. cans. Retailer: cents for albacore and about 3 cents for others, per No. can. 2 percent. Do Do. . Cement Certain imported items (natural menthol, tapioca, flour, blonde cotton net, wool berets (from Argentina), Indian numdah rugs, rayon net, English bone china and earthenware, Mexican istle fiber, and Mexican sisal (henequen) twine). Cold storage warehouse charges.. Commodities priced under ....do Importer 1 to 3 percent. Varied. Do Supplier Up to 10 cents per hundred- Do All except producer 18_. do weight for freezing commodities, when formerly under 10 cents, plus 50 cents per delivery order for sublots. Varied. Do.. GM PR (distributor sales). Compressors and condensers (6 hp. or less), and warm air, floor, and wall furnaces. Construction materials (sand, 3 percent. Approximately 3 percent for cement, ana 1.5 percent for others. About J4 cent per pound. Producer: 1.1 cents for each 1 Do do Do gravel and crushed stone, clay building brick, structural clay hollow tile, clay facing tile, clay drain tile, building, chemical, and industrial lime (except agricultural), sand lime brick, floor and wall tile, and cement). Copper, and primary and secondary lead. Copper electrical coils and windings. Cotton products (bed linens, towels, part-wool blankets, flannelette diapers, grey Birdseye diaper cloth, and three types of nursery products; handkerchiefs and men’s specified waterproofed clothing; rope, twine, yarn, and cord; tobacco seedbed covers, sheeting, bedspreads, napery, and hosiery). Domestic malt beverages do Do All Do Wholesaler and re- cent increase in contained copper cost. Retailer: 5 percent for anklets and hosiery, and 20 percent for bedspreads, tablecloths, napkins, and tablecloth fabric. Varied. Do tailer. do Do Eyeglass lenses and cases All Producer: 22 percent for lenses and 4 percent for cases. Mill: $1.18 per hundredweight at Minneapolis and $1.25 on Pacific coast. 1 percent. Indeterminate. Processor: 4 cents and 2 cents per gallon for mayonnaise and salad dressing and 50 cents per hundredweight for margarine. 6 cents per ton. 3 percent. 0.5 percent. Do- ... Flour All except retailer Do Lead paste and pigment products. Lead products or lead alloys All except producer.... do Do. Do. Mayonnaise, salad dressing, and margarine.- Miscellaneous solid fuels All Do Producer Do Most vitrified clay sewer pipe and allied products. New Jersey vitrified clay sewer pipe and allied products, metal lath, and brick, and Ohio-Michigan made drain tile. All except producer do Do. •Excludes price increases granted under individual company adjustment provisions. 18 Except resellers under supplemental regulations, or other regulations or orders. 40 • Nineteenth Quarterly Report Table 3.—Price Increases, July 25-Sept. 30,1946*—Continued Effective date Commodity Level of action Amount of increase Aug. 23,1946 Do Oranges All Country shipper: 37 cents per standard box. Retailer: average cent. Wholesaler: about percent. RetaUer: about 2^ percent. 5 and 6 cents per net ton, respectively. Indeterminate. Passenger car and motorcycle tires. Railroad fuel (sold ex dock Great All except producer do Do Do Lakes) and bunker fuel. Repair and maintenance service (automotive vehicles and farm equipment). Silver (sold in lots under 200,000 ounces). Softwood plywood Supplier Do All except producer... do H to M cent per ounce. 6 percent. Indeterminate. Do Do Specified machines, parts, and equipment (gears, pinions, sprockets, speed reducers and chains, gear motors, fans and blowers, meat packing and poultry processing machinery and equipment, and steel power boilers and equipment). Specified tanks and vessels do .’. Do do 3 percent. Producer: about llj^ cents per pound of contained cotton yam for listed types, plies, and counts. Producer: about 8 percent. Retailer: about 10 percent. Producer: 6 percent. About 2.6 percent. Retailer: 1.2 to 9.4 percent. Retailer: 2.3 to 22.9 percent. Retailer: 3.8 to 5.8 percent. Retailer: 21.0 to 28.3 percent. Retailer: 8.2 to 14.6 percent. Processor: 60 cents per hundredweight for standard and hydrogenated shortening, a cooking oU, and cents per gallon for salad oU. Retailer: about 1 cent. Indeterminate. Do Staple knitted products (includes children’s creepers and two-piece outerwear suits; men’s, boys’, and children’s outerwear tee and polo shirts; men’s and boys’ sweaters containing at least 60 percent cotton; and cotton or cotton-wool-mix sleeping garments). Staple work clothing All Do do Do. Toilet tissue and paper towels do Do Truck and industrial tires Retailer Do.... Trucks (Chevrolet)... AU Do. . Trucks (Dodge)...... do Do. Trucks (Ford). do Do. Trucks (General Motors) do Do. Trucks (White) do Do.... Vegetable oils. xdo Do.... Wire and cable makers using silver in their products. Bananas. dn Aug. 26,1946 Do Importer 60 cents at Atlantic ports north of Cape Hatteras, $1 at Los Angeles, $1.25 at San Francisco, and $1.75 at Seattle. Varied. Mixed feed Processor Do.... Northern softwood edge-glued panels. Brass and bronze alloy ingot Producer.... Do. Aug. 27,1946 Do do M cent per pound.19 Indeterminate. p Processor: 14 cents per dozen No. 2 cans. RetaUer: 2 cents per standard can. Producer: 6 percent. Producer: 7 percent. Producer: 5 percent. Varied. Brassieres, corsets, and girdles (base-period garments). Cairned tomatoes All Do do Do Eastern egg cases do Do.. . . Hardwood hogsheads and parts.. do Do . Industrial wooden boxes and do Do shook (boxes, assembled returnable beverage cases, and west coast and basic style No. 1 shook). Synthetic resins (containing butyl alcohol). Candy Producer ..... Aug. 28,1946 Do AU— Producer: 5 percent. Canner: $1.20 per case. RetaUer: about 2 cents on impound size and 4 cents on 94-pound size. Producer: approximately 10 percent. Canned Maine sardines do Do Cork pipe insulation ..—do .... AIL................... ____do______________ ____do._____________1 ____do._____________ ....do______________ ____do______________ Dealer_____,________ All_________________ ----do______________ ____do______________ ____do______________— ____do._____________ ____do.............. ....do________________ All except producer... AU__________________ ....do.............. Producer____________ Retailer____________ AU__________________ ....do______________ ....do______________ Slaughterer_________ AU.................. ....do______________ ____do_____________ 42 • Nineteenth Quarterly Report Table 3.—Price Increases, July 25-Sept. 30, 1946*—Continued Effective date Commodity Level of action Amount of increase Sept. 1,1946 Do Live sheep and lamb Terminal and interior markets and buying ing stations. Producer $3 per hundredweight. cent per yard. Wholesaler: average 75 cents per ton. Retailer: average $1.50 per ton. Do. Do. Do. Do. Do. Do. Retailer: 4 to 5 percent per pair. Wholesaler: average 75 cents per ton. Retailer: average $1.50 per ton. Do. Do. Do. Do. Do. 15 percent in Lake States, and 20 percent in all other zones, for sawn, and 10 percent for round. Cross bars approximately 28 percent. Average 10 percent. Producer: approximately 10 percent. Fishermen and processor: 1 cent per pound for albacore, and 2 cents for blue fin bonito (Pacific), skipjack, yellowfin, and yellowtail. $5 for 4/4 inch common, Nos. 1 and 3 grades of ponderosa, sugar, and Idaho white pine; $8 for No. 2 grades of same species, and for vertical grain Douglas fir, 8/4 inch and thinner. About 10 percent. Baker: 1 cent per pound. Producer: 21^ cents per gallon. $3 for 1-inch finish, and about $2.60 per Mb. m. for others. Baker: 2 cents per pound.31 $10 per ton. $1 per short ton. 65 cents per bushel. Varied. Processor and dealer: $1.80 to $4.20 per hundredweight. Producer: 15 percent for steel and 20 percent for wood or fiber. 10 percent f. o. b. mill plus about 85 cents per Mb.m. for transportation. 5 cents per ton.33 Miller: 20 cents per hundred weight. Retailer: 1 to 2 cents for the 5 pound package. Producer: 4 percent. Retailer: about 5 percent. About $4 per gross ton. Producer: approximately 7.1 percent for typical items. Producer: from 18 to 22 percent. Side leather welting Sept. 3,1946 Do Babassu, copra, auricuri, palm kernel and sesame products. Beet pulp products All except processor... do Do Commeah com flour, com grits, hominy grits, brewers grits, and other products made by dry corn milling products. Cottonseed products do..' Do do Do Distillers’ dried products do Do Fish meal and fish scrap do Do Linseed products do Do Low-end* footwear (using, goat and kid leather). Malt dried grain, dried brewer’s grain, malt cleanings, hulls, and sprouts. Oat mill byproducts All.. Do All except processor... do Do Do Peanut products do Do Soybean products do.. Do Wet corn*milling byproducts for animal and poultry feeds. Wheat mill feeds do Do do Do Wooden mine materials Producer Do Wool fabrics (base-period low-end constructions). Men’s and boys’ waterproofed clothing (base-period type). Tuna and related fish (fresh and frozen). Western pine and Douglas fir shop lumber (for doors, frames, sashes, etc.). Woodpulp do Sept. 4,1946 Do. . All do '. Do _ Mill Sept. 5,1946 Sept. 6,1946 Do Do Importer and producer All Cracker meal and bread crumbs.. Gum turpentine do Redwood lumber Mill Do Rye bread and rye rolls All Sept. 7,1946 Do. Sept. 9,1946 Do Rice polishings Mill Waste rags, ropes, and strings (delivery and loading charges). Flaxseed Kosher beef, veal, lamb, and mutton cuts. Processed and unprocessed dry edible beans (1946 crop). Venetian blinds Dealer : Terminal basing point. AIL. Do . do Sept. 10,1946 Do Sept. 11,1946 Do do White and Norway pine lumber (from Ottawa Valley, Canada). Exported coal (except to Canada) Flour Mill Reselling exporters.... All Do — Home furniture (low-end). do Do Cast iron scrap Dealer Do Staple work gloves AU Do Window and picture glass do ♦Excludes price increases granted under individual company adjustment provisions. 31 Extension of increase due to expire Sept. 1, 1946. 33 Exporting producers get an increase of 20 cents per ton. Appendix to Price Chapters • 43 Table 3.—Price Increases, July 25-Sept. 30,1946*—Continued Effective date Commodity Level of action Amount of increase Sept. 12,1946 Do Low-end apparel All Producer: 15.6 percent for knitwear and handkerchiefs; 9 to 38 percent for new gloves; and 15 to 27 J4 cents per dozen pairs of hosiery. 2 cents per pound. Producer: 20, 20, and 15 per Silver salmon2’ (produced in Pacific Coast States). Certain cotton rugs (cotton rag Fishermen Sept. 13,1946 Do. All... braided rugs, rugs woven of cotton yams, and rugs made of woven cotton fabric back and cotton yarn pile surface). Leather, from domestically tanned imported raw stocks (made of kangaroo and wallaby, South American deerskins, raw hair sheepskins other than paprahs, and raw paprahs, and chamois and shearling leathers). Trucks (Federal) do cent, respectively. Producer: 45, 45, 50, 26, and 6 percent, respectively.24 Retailer: 2.8 to 8.5 percent. Varied.28 Do do. Sept. 14,1946 Sept. 16,1946 Do Carpet sweepers (handoperated). Producer Automobiles (Ford) All Producer: 5.6 to 6.6 percent. Producer: 5 percent. Varied. Chlorine, caustic soda, and soda ash. Citrus fruit . do . Do Shipper . Do Finished rice A11~' Mill: 50 cents to $1.70 per Do Glazed millwork do hundredweight. Retailer: 1 to 2 cents per pound. Producer: about 4 percent. Producer: 20 to 80 cents per Do Parboiled rice do Do Rice bran and polishings All except producer Converter hundredweight. Retailer: about 1 to 2H cents per pound. Jobber: 30 cents per ton on sacks of 20 M pounds or less, and 15 cents on other. Wholesaler: 75 cents per ton. Retailer: $1.20 per ton. 40 cents per 100 sheets when lining paper is supplied by converter, and 25 cents when supplied by customer. Retailer: 35.4 to 62.6 percent. Retailer: 1.9 to 15.5 percent. Do Sheet lined paperboard (25 inch Do x 40 inch). Trucks (Autocar) All Do Trucks (4-wheeled drive) do Do Trucks (Sterling) do. „ Retailer: 11.8 to 20.3 percent. Do Western softwood custom-milling and kiln-drying (4J4-inch stock) Feather-filled pillows Mill. . #4 per M b. m. Producer: approximately 1 percent. $1.00 per ton. 10 percent. Producer: 3.5 percent. Varied. Sept. 17,1946 Do All Granulated triple superphosphate. Imported sulfate of ammonia Producer Do Importer Do (delivered in Washington, Oregon, California, and Arizona). Repair and replacement parts (household mechanical refrigerators). Small electrical appliances (low-end items, including 10-inch nonoscillating fans, hot plates, sandwich grills, and bowl-type space heaters). Softwood moldings (except western pine). Cotton textiles (grey goods) All Do do Do do Producer: average 20 percent. Mill: 1.24 to 2.99 percent, and 2.73 cents per pound for combed bedlinens. Retailer: about 1 percent for apparel, and 2^ percent for bed linens. Refiner: 1^6 cents per pound. Retailer: about 2 cents per pound. Producer: average 24 percent. Sept. 18,1946 Do . . .do Direct-consumption sugar do Do Domestically tanned sheepskin and lambskin leather. do ♦Excludes price increases granted under individual company adjustment provisions. ” Steelhead and sockeye varieties receive an extension of previous increase due to expire Aug. 31.. 24 Increases, except for chamois and shearling leathers, are limited to leathers priced at or below 80 cents per square foot, and the first 80 cents per square foot of the higher priced leathers. 2410 to 25 percent for 3 large manufacturers. 44 • Nineteenth Quarterly Report Table 3.—Price Increases, July 25-Sept. 30, 1946*—Continued Effective date Commodity Level of action Amount of increase Sept. 18,1946 Do Douglas fir broom and mop handle squares. Imported castor beans and oil.... Linseed oil Producer About 35 percent. $47 per long ton c. i. f. first point of entry for castor beans, 5.2 cents per pound for Nos. 1 and 2 grade castor oil in New York; and 7.04 cents per pound for dehydrated bodied castor oil. 2 cents per pound. 9.9 cents per gallon. Producer: 8 percent over March 1942. Retailer: 1 cent each on the 2-for-25-cent boxes and 2 cents for the former 25-cent box. 7 to 16 percent over October 1941. $1.37 per pound, f. o. b. Cuba. Producer: $1 per barrel or 27.8 cents per bushel in Arkansas, Louisiana, and Texas, and 62 cents in California. 5 percent. Varied. Producer: about 10 percent. 5 cents per bushel per season. Producer: 3.2 percent. Varied. Producer: 3.5 percent. Wholesaler: 50 to 75 cents per ton. Retailer: $1 to $2 per ton. Indeterminate. Retailer: average about 10 percent. Indeterminate. Retailer: 66.2 to 138.3 percent. Producer: 12 percent on direct-to-consumer sales, and 6.8 percent on others, both over October 1941. About 3.6 percent on staves, 7.6 percent on headings, and 1.6 cents per keg. -5 cents per bundle for staves, of nonstandard dimensions. Producer: about 17 percent, and 11 percent on direct sales of custom shades. Producer: approximately 10 percent. Producer: about 5.5 percent. Producer: average $1.24 per M 1-inch yards. 5 percent on mail-order catalog sales. 12 percent. 4.7 percent. Crusher and importer. Crusher Do Do Linseed replacement oil Producer Do Packaged facial tissues All. Do “Pure Pak” milk bottle blanks (west coast). Raw sugar (1946-47 crops) Producer Do do Do Rough rice _.J All .... Do Toilet tissue and paper towels (jumbo rolls). Insulation and felt cordwood and related products. Staple cotton utility clothing (freeze-priced). Cold storage of apples, pears, onions, and carrots (Appalachian area). Construction machinery and equipment. Consumers’ 5- and 10-cent candy items (except solid chocolate molded items). Metal upholstery springs, constructions, and parts. Mixed feeds Producer Sept. 20,1946 Do. Dealer All Sept. 23,1946 Do Supplier do Do do Do do Do. All except producer... Producer Do. Ready-mixed cement Do... Stainless steel cooking utensils (including copper clad). Structural clay products (common and face clay and shale building brick, including glazed ware; structural clay hollow and face building tile, including glazed facing; sand lime brick; and clay drain tile, except that produced as an allied product to vitrified clay sewer pipe). Trucks (Reo). All u. Do do Do do Do Wire-tied innerspring mattresses. do Sept. 24,1946 Sept. 26,1946 Do Nail kegs, staves, and headings.. Cloth window shades and window shade rollers. Utility shirts (flannel, domet, moleskins and suede). Woodworking and timber-working machinery. Gummed cloth tape Producer All do Sept. 27,1946 Sept. 30,1946 Do . . do _ do — Household cast-iron and enamel ware (except substandard). Southern pine material for tobacco hogsheads (except export tobacco boxes). Tobacco hogsheads and parts (except battens or cross pieces, and liners). Retailer Do Producer Do do ............ •Excludes price increases granted under individual company adjustment provisions. Appendix to Price Chapters • 45 Table 4.—Releases from Price Control, July 25—Sept. 30,1946 Effective date Commodity Level of action Period of release July 25,1946 July 26,1946 Do Cotton compressing, warehousing, and incidental services. Agate Supplier. _ Permanent. All Indefinite. Do. Air conditioning equipment condensing units do. Do. (25-ton capacity and over). Air conditioning units (self-contained, over 1 do Do. Do horsepower to 12,000 B. t. u. and up to but not including 25 horsepower). Air mattresses and pillows do— Do. Do. Do. Do. Do Alignment machine's- do Do Aluminum screen cloth do Do Anchors, earth and rock (except guyline) do. Do Andalusite do__ Do. Do. Do Antifriction bearings, and ferrous and non- do. Do ferrous bearings and bushings (finished . weight 25 pounds or more per bearing or bushing). Anvils and parts do.. Do. Do. Do. Do Aplite do Do Apparel and apparel accessories made by religious, educational, philanthropic, or other charitable organizations (made to furnish occupational activity having educational or therapeutic value to handicapped persons) Arc lamps do Do do. Do. Do. Do - Asbestos paper, millboard, and cellular and do. Do.. laminated sectional pipe covering and blocks. Automatic cellar and basement drainers do__ . Do. Do Automobile seat-bed units do Permanent. Indefinite. Do. Do Automotive creepers do Do Awnings, hardware and pulleys do Do Awnings.. do„ Permanent. Indefinite. Do. Do Axle straighteners „do Do . Balancing machines (crankshaft, wheel, etc.). do Do Bands arid cushions (for artificial limbs) do Do. Do Barite do Do. Do. Do Basic granular refractories (consisting of ag- do.. .. Do .... gregations of dry, loose grains of basic mate-* rials such as dead-burned magnesite and dolomite, dolomagnesia, and/or magnesia, used to construct and maintain inner surfaces or furnaces). Bathroom and closet fixtures (under MPR do Do. Do 188, when sold to consumers for 30 cents or less, to dealers for 20 cents or less, and to jobbers for 15 cents or less). Battenstrips do . Do. Do Battery operated clocks (except automobiles). do Permanent. Do Bearing oil lead detectors do... Indefinite. Do. Do Beekeepers’ machinery, supplies, and equip- do Do ment. Belting, leather and textile do. Do. Do. Do. Do __ Bentonite - do.. Do Beverage cooling and dispensing equipment.. Beverage distilling, winery machinery and do.... Do do Do. DO— equipment, and brewing and beverage processing and bottling machinery and equipment (only when designed and sold for use in the manufacture of distilled, malted, carbonated, and fermented beverages, and subject to RMPR 136). Bismuth metal and alloys do.. Do. Do. Do Black and galvanized nipples (except radiator do Do nipples and those produced from standard weight welded steel pipe and welded genu-ine wrought iron steel pipe, threaded both ends, in pipe sizes 6 inches or less and in the lengths shown in the National Bureau of Standards Commercial Standard No. CS 5-46). Black and galvanized smoke pipe, fittings, do Do. Do and accessories (all sizes but not including smoke stacks or breechings). Blood-pressure bags, bulbs, and tubing do._„ Do. Do Blood-transfusion connectors do... Do. Do____ Blower feeders - - do... Do. Do Blueprinting do. Do Box feeders do.... Do.. Boxes and gratings, road and curb — do Do. 725854—47----4 46 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26, 1946 Do Braided cord with wire core (for other than All Indefinite. transmission of electric current uses). Brain-surgery caps do Do. Do Brake-drum gages .do .. Do. Do Brake-lining application machines do Do. Do Brake-lining appliers . . do__ Do. Do Brake-lining grinders and riveting machines Brass flanged and screwed fittings (except circulating boiler fittings, but including unions and union fittings; limited to all fittings larger than 2 inches IPS regardless of pressure designation; all fittings designated by the producer for more than 125 pounds SWP (MIP) regardless of size; and railing fittings). Brass-flare fittings (limited to sizes larger than 2)4 inches 0. D. tubing). Bright-wire goods— do Do. Do do Do. Do do . Do. Do .... do Do. Do Do Bronze fittings (with ends for high temperature brazing). Buffing and polishing wheels do do Do. Do. Do Builders’ hardware (except certain specified items). Bushings and plugs (made of brass, iron, and steel, except iron bushings and plugs 4 inches IPS or smaller for the largest dimension). Cabinet hardware (except pulls, knobs, catches, latches, and steel hinges). Cable wrapping tape - do Do. Do ... do Do. Do. do Do. Do do -. Do. Do Cadmium metal .... do Do. Do Cadmium oxide and cadmium sulfide do Do. Do Can-making machinery and equipment do Do. Do Caps and closures 1 do — Do. Do.... Car loaders, unloaders, and dumpers (railway and mine). Carbon base foundry facing do Do. Do .do Do. Do Carolina stone do Do. Do Carrier racks (designed to carry luggage, fish poles, and pipe). Cast brass types do Do. Do do. Do. Do Cast-iron drainage fittings (limited to all do Do. Do fittings larger than 6 inches IPS; and all drainage fittings, regardless of size, specfi-cally designed for support of horizontal waste above floor of wall hung, wall outlet closets). Cast-iron screwed and flanged fittings do Do. Do (limited to fittings larger than 4 inches IPS regardless of pressure designation; fittings designed by the manufacturer for 250 pounds SWP or more regardless of size; and flanged unions). Casters ... . do Do. Do Celestite . do Do. Do Ceramics machinery (subject to RMPR 136). Chain, chain fittings, and assemblies (not including power transmission). Chemical process machinery (subject to RMPR 136). Chairs, low-back (designed primarily for use as piano chairs). Chalk, bulk do Do. Do do Do. Do do Do. Do do Permanent. Do do Indefinite. Do . Chucking machines, vertical or horizontal (automatically operated, regardless of weight). Clay (activated, ball, bleaching, china, paper, slip, and stoneware). Clocks, china and oynx-cased do Do. Do do Do. Do do Permanent. Do Cloth, plastic and screen do Indefinite. Do Clutch facings (except automotive) do Do. Do Coal preparation machinery and equipment.. do Do. Do Coils and fan coils (except those produced from glass, designed for cooling purposes only). Colonic bags - do Do. Do do Do. Do Colostomy outfits do Do. Do Combustion analyzers do. Do. Do Compressors, air and gas . ...do Do. Do Concrete batch measures and weighers (used do Do. in connection with the production of concrete products). Appendix to Price Chapters • 47 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26, 1946 Do ’ Condensing units (over 1 horsepower and up to but not including 25 horsepower or 25 tons). Conical mixers All Indefinite, do. Do. Do Connectors, tie and timber. do Do. Do Control equipment covered by MPR 591 and GM PR (except nonelectric check and draft damper regulators, electric and nonelectric gas burner primary controls for automatic firing, electric limit controls, electric and nonelectric oil burner primary controls for automatic firing, electric refrigeration controls, electric relays and low-water cut-offs). Conversion grates (except fireplace) do.... Do. Do do Do. Do Conveyors and conveying systems, all types (including portable, loaders, and conveyors). Copper and brass sweat or solder joint fittings (limited to specified sizes). Cork composition products (except die-cut gaskets and shape specialties). Cork tipping for cigarettes do Do. Do do Do. Do do Do. Do do Do. Do Cornwall stone do „ Do. Do Corrective foot appliances and parts do Do. Do Cotter pins (iron and steel) do Do. Do Cotter pins (nonferrous metal) do Do. Do Cotton-ginning and delinting machinery do... Do. Do Counter and back bar refrigerators and display cases. Cowl boards and foot rails. do.... .. . Do. Do do Do. Do Creped cellulose wadding (used as a protective packing and for other industrial purposes, except for processing or manufacture of sanitary products). Crude and refined arsenic tri-oxide - do Do. Do do Do. Do Crushers, grinders, and pulverizers (including complete plants, but not including grinders, crushers, and pulverizers for farm use and for the preparation of animal or human food, and grinders used for shaping metals, plastics, or wood). Crutch parts do Do. Do do . Do. Do Cryolite do Do. Do Custom baked enamel finishing of wooden bobbins. Custom-built furniture frames (designed and constructed to specification of a single purchaser, sold in a quantity not exceeding two units, or for dining room chairs, not exceeding a set of 12). Custom-built screen (on application by producer meeting certain conditions). Custom cleaning of the 1946 crop of Kentucky blue grass seed. Cutting-off machines (automatically operated, regardless of weight). Cyanite do Permanent. Do do . Indefinite. Do do— .... Do. Do do . Permanent. Do do Indefinite. Do do Do. Do Derricks and substructures do Do. Do Derricks (guy, stiffleg, and floating) do Do. Do Diatomaceous earth. J do.... Do. Do Dilators do.... .. . Do. Do Disconnecting and lowering hangers and accessories (for lighting-equipment). Dowel bars and expansion devices (for concrete paving). Dredges (including equipment specially designed for such machinery). Drilling machinery (core, blast hole, and water well). Drilling mud do Do. Do do... Do. Do do Do. Do.. do .... Do. Do do .. Do. Do Dry vacuum pumps (normally driven by prime movers of more than 10 horsepower), and assemblies of such equipment sola with or without prime movers, storage tanks, controls, etc. . Ducts and accessories for electrical uses, do Do. Do do.... Do. Do nonmetallic (except wood, asbestos-cement, cement conduit, and clay conduit). Dumortierite do.... Do. Do Dust collecting, industrial, portable, and stationary equipment (including industrialvacuumcleaners). do.... . Do. 48 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25-Sept. 30, 1946—Con Effective date Commodity Level of action Period of release July 26,1946 Do Dusters All Indefinite. Electric fence controllers do Do. Do Electric metal testing equipment (except for electronic apparatus). Electrical glassware (flares) do Do. Do do Do. Do Electrical Instruments (electrically or magnetically actuated for indicating, measuring, recording, or testing electrical quantities, except automotive or electronic testing instruments). Electroplating and hot-dip metal coating equipment (including preparatory and finishing equipment used in connection with metal coating processes). Engine overhaul stands do Do. Do do_ — .... — Do. Do do Do. Do Engineered precision die, mold, pattern, and grinding plate castings (produced to close ’ tolerances and fine finishes, where no further machining is required except to match surfaces or parting lines, to chrome plate surfaces, or to provide holes for guide pins). Equipment designed for use on gasoline and oil bulk stations, filling stations, tank cars, and tank trucks (limited to nose nozzle valves or faucets, hose nozzle check valves and strainers, fill boxes and caps, tank vents, gauge boxes, foot valves, suction strainers, truck tank faucets, manifold valves, loading valves, and anti-freeze valves, and valves specifically designed for marine services on application by producer). Evacua tors do Do. Do do Do. Do.. do Do. Do - Evaporative condensers .. .. do Do. Do ... Expanded metal (produced by metal lath manufacturers, except when sold for use as a base for plaster, stucco, or ceramic wall tile). Fabricated steel racks (designed for and used with lift trucks and portable elevators). Fan blades do Do. Do do Do. Do do Do. Do Feeder voltage regulators do Do. Do Feldspar do -— Do. Do . . Firefighting (standpipe) equipment (nozzles, clay pipes, racks, Siamese (or steamer) connections, and wrenches; wall, street washer, and yard hydrants). Fittings especially designed to SAE standards and so designated by the producer. Flashings (except lead) do Do. Do . . do - Do. Do do Do. Do Flint do Do. Do.. Floating cranes do Do. Do Flood-lighting equipment do Do. Do Floor surfacing and floor maintenance machinery and equipment subject to RMPR 136 (general floor machinery used for scrubbing (wet and dry), floor polishing, waxing, steel wooling and disc sanding, including combination scrubbers and water pick-up machines, sanders (drum type), floor edgers, and terrazzo grinders). Florists’ wire .. . do Do. Do.. ... do Do. Do Food trays and dishes (made of white lined paperboard, groundwood paperboard, and molded woodpulp and wood). Forged or cast steel, carbon steel, steel alloy fittings, screwed, flanged or welding ends (except welding and fittings designated by manufacturer for less than 260 pounds S WP). Forces. hand- or power-operated do Do. Do . ...do Do. Do do Do. Do Forgings (under MPR 361, as sold by the forger and weighing 60 pounds or more each). Formed vallev (except rolled) Do . ....do Do. Do Fountain pens and mechanical pencils (cap and barrel made of solid gold or gold-filled sterling silver of Mo, Mo, or M 14 karat or more). Frame and axle straighteners do Permanent. Do do Indefinite. Do Frame straigh ten in g racks ....do Do. Do Front-end inspection and correction machines. do Do. Appendix to Price Chapters • 49 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26,1946 Do Fruit jar rings All Indefinite. Fuller’s earth do Do. Do Funnels do. Do. Do. Furnace pipe, fittings, and accessories (all types and sizes). Furniture hardware (including metal slides and glides but not including casters). Furs and fur garments (made of muskrat, marmot, pony, South American spotted cat, Indian lamb, Lincoln lamb, Indian and African kidskin, hare, and squirrel). Galvanometers do Do. Do. do Do. Do do Do. Do. ... do Do. Do. Gang mowers do Do. Do Garbage truck bodies do Do. Do Garnet do Do. Do.. Gas tank caps and locks do Do. Do Gaskets, packings, and oil seals (except automotive, but including mechanical packings, packing in sheets, slabs and strips, and other packing products). Gages (all types) do Do. Do do Do. Do Gears and pinions (exclusively designed for use in military vehicles and equipment). Gearshift knobs do Do. Do do Do. Do. Generator test benches do Do. Do Geophysical machinery and equipment do Do. Do Gilsonite do ..... .. Do. Do Glass and other melting sands (except when sold for use in/or units of masonry construction). Glass cloth and screen cloth do Do. Do do. Do. Do Glass (colored sheet, opalescent, and cathedral). Glass-making machinery and equipment do Do. Do do ..... Do. Do. Glass molded neoprene surgical tubing do Do. Do. Governors (except automotive) do Do. Do Graphite . do Do. Do. .... Graphite crucibles, stoppers, retorts, and similar graphite products (for use in foundries). Grease and oil pressure valves and fittings (except those covered by RMPR 136 and MPR’s 246, 452). Grease and oil separators do Do. Do do Do. Do do .. Do. Do —— Greensand. do Do. Do - Grinding sand except abrasive sand covered by MPR 327 (except when sold for use in/or units of masonry construction). Halloysite do Do. Do . — do Do. Do Handbags (principally of fur) do Do. Do Hanger bags do Do. Do Hardware parts or subassemblies of any hardware item whether or not such item is decontrolled, when the part is made specifically for and sold to a hardware manufacturer for incorporation into a hardware item. Hat-making machinery and equipment (except sewing machines). Hat shop machinery (apron settler, blocking, dyeing, felting, forming, fur blowing and multi-roller, rounding, starting, stiffening, and stitching machines). Head trimmers, bolt and screw (automatically operated, regardless of weight). Headlight testing machines do. Do. Do. do Do. Do do Do. Do _ do Do. Do do Do. Do— Heat exchanger "equipment (for which the manufacturer had no published or established price on Oct. 1,1941, which is of the shell and tube types and bad a heat transfer area in excess of 100 square feet). Heating and winter air-conditioning equipment (specifically designed for institutional, commercial, or industrial installation).* do Do. Do ’ do... Do. ineteenth Quarterly Report -Releases from Price Control, . Commodity Horse and mule shoes, horse shoe pads, calks, and other horse shoe accessories. Horsedrawn buggies_________________________ Hose fittings and valves (except garden hose fittings). Household television receiving sets________ Household vitrified china and pottery______ Ice cube makers (cabinet type)_____________ Iceland spar_______________________________ Illmenite__________________________________ Industrial block, brake and friction_______ Industrial control equipment (designed and assembled for use with motors 250 horsepower and larger, except parts sold separately, unless specifically designed for use with 250 horsepower motors or larger). Industrial diamonds________________________ Industrial fans and blowers (except automotive fans and blowers, unit beaters or unit ventilators, hand blowers, desk, portable, pedestal, ceiling or wall mounted types, warm air furnaces, fans, or blowers, attic ventilating fans, exhaust fans and blowers 24-inch standard diameter and smaller, designed to be built into a building, and fans and blowers which are sold to other manufacturers as component parts of machines covered by MPR 64, RMPR 111, MPR’s 188, 591, or 598). Industrial feed water-heaters______________ Industrial gas generators__________________ Industrial glassware (cylinders, flat gage glasses, gage and oil cup glasses, meter and relay covers). Industrial machine needles_________________ Industrial metal doors_____________________ Industrial timing and clock movements (including synchronous motors and mechanisms) . Inhalation bags and face pieces (medical, surgical, dental, veterinary, and laboratory). Instrument transformers (except electronic parts). Insufflators_______________________________ Internal-combustion engine flame arrestors (except automotive). Intravenous connectors_____________________ Iron and steel hand rails and stairway guards. Iron and steel stair treads________________ Iron or steel fireplace dampers____________ Jacks and jack screws (more than 20-ton capacity, except those customarily purchased for or designed as original equipment for passenger automobiles or commercial trucks and buses). Kaolin_____________________________________ Key blanks (all types and materials)_______ Kieselguhr_________________________________ Laboratory and pharmaceutical ware (apparatus ware, chemical ware, instrument tubing, laboratory apparatus, and pharmaceutical ware). Lavatory hardware__________________________ Leather tanning and leather working machinery and equipment (except sewing machines). License frames_____________________________ Lighting equipment (solely for airport, airway, marine or seadrome use). Lightning arresters________________________ Lift trucks________________________________ Logging and lumbering yarders and arches (including trailers). Louvres____________________________________ Low-water cut-off (with or without pressure control and designated to operate at a water pressure of 30 pounds or less). Machine attached snap fasteners______ Machine keys and pins______________________ Appendix to Price Chapters • 51 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26,1946 Machine tools (under MPR’s 1 and 67), All Indefinite. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Permanent. Indefinite. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do weighing over 2,000 pounds with standard equipment. Machinery, die casting and molding do... Do Machinery, miscellaneous (especially de- do... Do signed for use in mines and sold exclusively to mines, under RMPR 136). Mail boxes (except rural) do. Do Malleable iron flanged or screwed fittings do... Do (but not including malleable iron unions and fittings, and circulating boiler fittings; limited *to all fittings larger than 4 inches IPS regardless of pressure designation: all fittings designated by the producer for more than 150 pounds SWP regardless of size; and railing fittings, drainage fittings, air tested fittings, for air brake or other compressed air services). Malleable iron unions and union fittings do... Do (limited to all fittings larger than 2 inches IPS regardless of pressure designation; all fittings designated by the producer for more than 150 pounds SWP regardless of size; and flanged unions). Marine hardware (except turnbuckles) do.. Do Medicine droppers and bulbs do.. Do Do- Metal cocks, all types of pressures (limited to steam, gas and water service, meter, ground key, brine, corporation, hydrant, lubricated, pet, cylinder, gage, spring loaded, asbestos packed, but not including brass gas stove stops or radiator air valves). Metal concrete accessories and specialties.... do do... Do Metal concrete forms do Do Metal ice-cream cans do Do Metal incinerators do. Do Metal industrial dollies do. Do Do Metal masonry anchors and inserts Metal plastering accessories and specialties.. do.... do Do.. Metal skid platforms, pallets, and boxes do... Do Metal spools and reels (designed and sold for do.. Do use in shipping wire, cable, rope, etc.). Metallic arsenic —— ;do Do Microfilming do. Do.. Microscope covers do. Do Mileage testers.... do Do.. Milling machines (automatically operated, do... Do regardless of weight). Mineral fillers do. Do Mining machinery — do. Do Mining machinery and equipment, specialized (including adjustable props, assaying and testing equipment, bag-filling machines, buckets, skips, and cages, etc.). Molasses gates — do... Do do. Do Monel screen cloth do. Do Moldings, bindings, and edgings do.. Do Motor analyzers and testers ...—do.. Do Mullite — — do Do Nepheline syenite do. Do Nonhighway trailers (used with industrial do Do trucks). Nozzles (except garden hose).. .-.—.do.. Do Nut-forming machines (automatically oper- do Do ated, regardless of weight). Olivine.-. do. Do Open-web steel joists — do. Do Ore bridges... do “ Do Ore dressing and ore concentrating machin- do Do ery. Orsat bags .....do. Do Orthopedic pads and parts do. Do Overhead trolley line materials do. Do Padlocks do Do Paint- and varnish-making machinery do„ Do Paint-making products, specialty ... do.. Do - Panels, blank, slate, or composition (for do... Do electrical purposes, except parts for radio receiving sets). Partitions do Do Parts for acoustic aids 1 do.,.. 52 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25-Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26, 1946 Do Parts for medical, surgical, dental, veterinary, and mortuary instruments. Pebbles, quartz and flint All Indefinite. do. Do. Do Pencil type air gages do Do. Do Permanently installed lawn-sprinkler equipment. Petroleum equipment (cementing, floating, guiding, and shoe). Petroleum-refining machinery do Do. Do do Do. Do do Do. Do Pharmaceutical machinery' (designed exclusively for and sold to manufacturers of biologicals, drugs, and pharmaceuticals). Photoelectric sorting of nuts, seeds, fruits, and vegetables. Photostating do Do. Do do. Permanent. Do do Do. Do Pile drivers ^including caps and extractors).. do Indefinite. Do Pipe, pipe fittings, and valves (alloy iron).... do Do. Do Pipe Hangers and rests (of only the roller and spring suspension types). Plastic bathroom fixtures and accessories do .. Do. Do .... . do Do. Do (under MPR 523). * Plastic buttons (under MPR 523) do Do. Do .. Plastic kitchenware (under MPR 523) do Do. Do . Plastic poultry leg bands (under MPR 523).. do — Do. Do Plates, "molded woodpulp and paperboard (including cake circles and butter chips). Plowshare sharpening .....do Do. Do do Do Plumbing equipment and accessories (specifically designed for institutional, commercial, or industrial installation on application by producer). Poker tables do Indefinite. Do do Do. Do..„ . Portable bath tubs do Do. Do... . Portable elevators do ’ Do. Do Potheads, indoor and outdoor (for making terminal connections to electrical cable). Poultry farm equipment (egg graders and candlers, floor and battery brooders, fowl catchers, growing and laying batteries, incubators, killing cones, laying nests and grit boxes, poultry feeders, poultry wa-terers, and poultry water heaters). Pouncers do Do. Do do Do. Do do Do. Do Power cylinders, hydraulic, hydropneumatic, and pneumatic. Power-driven industrial brushes do — Do. Do do Do. Do Power-operated pumps (other than steam do Do. Do or reciprocating, capacities in excess of 100 gallons per minute at normal maximum rated head or pressure). Power operated reciprocating pumps (other than steam, capacities in excess of 100 gallons per minute or working pressure in excess of 250 pounds per square inch). Power-operated trucks (except automotive do Do. Do do Do. Do trucks^ straddle trucks, and lumber carriers) . Prefabricated pipe (except pipe cut to specified lengths or pipe on which fittings are . “made on”). Printed and decorated napkins, table covers, and towels. Printing trades machinery and equipment (as defined in Order 568, RMPR 136). Prophylactics (diaphragms; fittings, rings; pessaries; prophylactics; and vaginal applicators). Prospecting machinery and equipment Prostatic bags do Do. Do do. Do. Do . .do Do. Do „ . .do Do. Do do Do. Do „ . do Do. Do..,.— Prosthetic devices and parts do Do. Do Pulp, paper, fiber, and pulpboard making machinery (except converting machinery) Pumice do Do. Do. . do Do. Do Pumicite... ... do Do. Do Pyrites do Do. Do Pyrometer movements do _ Do. Do _ Quartz (excluding optical and radio grades).. Radiator caps ana ornaments do Do. Do do Do. Do Radio headphones do Do. Do Rail-bonds," rectifiers (1 kw. capacity and larger). do Do. Appendix to Price Chapters • 53 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con Effective date ' Commodity Level of action Period of release July 26, 1946 Do Railway car journal bearings (under RMPR 125). Raw cork All Indefinite. do Do. Do Reciprocating direct acting steam pumps (steam and water cylinders integrally mounted, any capacity at any head). Refractory lined settings (including soaking pit covers, especially engineered, designed and sold for use in/or with furnaces, heaters, heat exchangers, boilers, incinerators and oil stills used for industrial processing purposes only). Refrigerated coolers (beverage, water, milk, and salad). Refrigeration equipment condensing units (25 horsepower or more). Refrigerator compressors (over 10 horsepower and up to but not including 25 horsepower, or 25 tons). Refrigerator hardware (for commercial refrigerators). Refrigerators over 16 cubic feet capacity (commercial, display, reach-in, and walk-in). Registers and grilles (all types) do Do. Do do Do. Do do Do. Do do Do. Do do Do. Do do Do. Do do Do. Do do Do. Do Rental of any machine or machine tool (subject to MPR’s 1, 67, or RMPR 136, and except those listed in MPR’s 134 and 375). Rentals of decontrolled consumer durable do Do. Do .do (’). Indefinite. Do goods. Repair of truck tires (above size 16.00) Resale of nonprefabricated building originally purchased apart from the land from any Government disposal agency. Ridge roll and accessories do Do do Permanent. Do do Indefinite. Do Rivets, solid steel (J^ inch diameter and over). Rodless oil-lifting machinery and equipment. Rotary bits, reamers, and core barrels .... Rottenstone do. Do. Do do Do. Do . do Do. Do do Do. Do Rough glass blanks for optical, ophthalmic, and scientific uses. Rubber and allied products machinery (designed and sold primarily for use in the manufacturing, processing, or fabrication of rubber and rubber products, including tire recapping and retreading machinery and accessories for tire recapping and retreading machinery). Rubber floor mats and runners ._ do Do. Do.. do. Do. Do . .do Permanent. Do Running board plates and moldings do Indefinite. Do Rutile - do Do. Do Sand, blasting, foundry, traction, Alter, and refractories (except when sold for use in/or units of masonry construction). Sanitary napkins (sold in vending machines). Sanitary risers do Do. Do do Do. Do do Do. Do Sash hardware (except cast iron and wrought steel aluminum base sash fasteners and lifts, and wrought steel drive in type sash pulleys). Screen and screen-door hardware (except steel or cast-iron rim, mortise, and tubular screen-door latches, steel screen and storm sash hangers, and nonadjustable type steel or cast-iron spring hinges for screen and storm doors, but including grilles and guards and storm sash hardware). Screening machinery (except machinery used for preparation of animal or human food). Screens and miscellaneous packers ... .do Do. Do do Do. Do do Do. Do do Do. Do Screw machines and threading machines, single and multiple spindle (automatically operated, regardless of weight). Screw-slotting machines (automatically operated, regardless of weight). Searchlights (except battery operated) do Do. Do.. do Do. Do . _ .do Do. Do Sepiolite . do Do. Do Services of water contract carriers on the Supplier Do. Great Lakes. 3 Suspended or exempted according to the status of the decontrolled items. 54 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25-Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26, 1946 Do. Services (subject to MPR 581, except abrad- Supplier. ing, assembling, cutting, forming, grinding, machining, shaping, and welding). Sheet-metal work, miscellaneous (except AU Do. Do metal base, and pressed-steel stud and joist framing). Ship and boat loaders and unloaders do Do. Do Shoe-manufacturing and repairing machinery do Do. Do (designed exclusively for the manufacture, repair, or production of shoes, not including sewing machines). Showcase hardware do Do. Do. Do Shower enclosures (to be mounted on bath- do Do tubs only). Shower-stall doors and door frames do Do. Do Do Shutters, metal and metal covered do.... Do ... Signal ware (airplane running lights, lenses, obstruction lights, optical ware—color and light filters—and roundels). Signaling apparatus (rated in excess of 100 watts, except automotive). Sinus pads and bags - do Do. Do do Do. Do do Do Do Sirens," air, steam, electric, and power driven Skylights — - - - do Do Do do Do Do Slate flour .... - do Do Do Snow plows (except those especially designed for use with farm and garden tractors). Solar systems (all types for heating and hot water generating). Solid steel rivets inch diameter and over) Spare-tire locks -- - do . Doi Do do Do. Do do . Do. Do dn Do Do Spatulas .. do Do Do- Speedometer testing equipment do Do. Do.. Splint cushions ........... do... Do. Do f. _do Do. Do. Do . Sprinkler (fire protection) - do Do.... Stationary and marine gasoline and kerosene engines (total cylinder volume 100 cubic inches or more), oil engines (normally rated for continuous duty at more than 50 horsepower, excluding Diesel engines), and gas engines (except those designed for and sold primarily for operation on liquid fuels). Steam economizers, industrial and marine do Do. Do . do Do. Do Steam power generation and industrial condensers. Steam separators, industrial and marine do Do. Do . do Do. Do Steel storage tanks, field erected do Do. Do Steering wheel spinners ... do Do. Do Stone-working machinery and equipment. do Do. Do Storage tanks and accessories - ._. do Do Do Stove pipe fittings and accessories .... do Do. Do Do Street-and highway-lighting equipment do Do Strontianite —— do Do. Do Suckers (pull and polish rods) - do Do. Do Sunvisors - do Do. Do. Suppositories - do Do. Do Surface and subsurface cable-tool machinery do Do. Do and equipment. ’Surface and subsurface flowing well equip- do .. Do. Do. ment. Surface and subsurface rod lifting machinery and equipment. Surface and subsurface rqfary machinery and equipment. Surveying instruments (including levels, transits and drafting instruments, but not including drafting room supplies). Swing expansion, and flexible joints do... Do. Do do Do. Do do Do. Do _ do Do Do Syphons (for steam gages) do..: Do. Do.. . System equipment (not including pipe and fittings). Tank bodies (designed for mounting on trucks and trailers). Tank trailers do Do. Do do Do. Do do Do. Do . Tanks and vessels, pressure, nonpressure, and open (except those designed, for incorporation into other machinery). Tappers (automatically operated, regardless of weight). do Do. Do do Do- Appendix to Price Chapters • 55 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release July 26, 1946 Do Terrazzo strips All Testers, ignition, fuel, and electrical system do Do. Dn Theater control boards do Do. Do Thermapeutic applicators do Do. Do Thermometer cases do ' Do. Do Thin cigarette, condenser, carbonizing (above A-grade book), lens, and -stencil tissues. Tire-balancing machines - do Do. Do do Do. Do Tire-inflation” stands (with or without meters). Tire-traction devices do. ... Do. Do do Do. Do Tobacco-working machinery do. ... Do. Do Tools, speciallv designed do Do. Do Tools' and machinery, specially designed (under MPR 581). Topaz -- do Do. Do do Do. Do Tourniquets do Do. Do Tow bars (cables and chains) do Do. Do Towing bars and cradles do Do. Do Track bolts - do Do. Do Traction sanders do Do. Do Traffic signals (all types for regulating pedestrian and vehicular traffic). Tripoli — do Do. Do do Do. Do Truss parts do , Do. Do Try cocks do Do. Do Turret-forming machines (automatically operated, regardless of weight). Umbilical belts do Do. Do do Do. Dn Umbrella frames - do . Do. Do Urinals - do Do. Do Valves, automatic, regulating and/or float (except flow control valves and appurtenances for domestic heating systems). Valves, brass, manually operated (designated by the manufacturer to operate at presr-sures 125 pounds or less, limited to specified types and sizes). Valves, brass, manually operated (designated by the manufacturer to operate at pressures in excess of 125 pounds 8WP). Valves, brass or iron pop safety and/or relief, for steam and hot water heating boilers, low pressure (up to 15-poundmaximum SWP). Valves, iron, steel, or steel alloys, manually operated (regardless of size or pressure designation). Valves, iron, steel, steel alloys, and brass, motor operated and gear (when designed for industrial piping systems, power generating stations, marine services, sewage disposal plants, and water works). Venetian blind hardware do Do. Do do Do. Do-_ do Do. Do do Do. Do do Do. Do do Do. Dn do Do. Do Ventilators (except marine, or motor operated). Vermiculite do Do. Do do Do. Do Veterinary sleeves do Do. Do Volcanic ash do Do. Do Vulcanized fiber spoons and forks do Do. Do Water conditioning and purifying equipment (except domestic equipment). Water pressure regulators (designed for domestic use). Water well drilling machinery do Do. Do do Do. Do.--. do Do. Do Weather stripping, metal and metal bound. _ do Do. Do Welding and cutting equipment do. Do. Do Well-servicing and well-surveying machinery do Do. Do and equipment. Wet cell primary batteries do Do. Do Wheel dollies do Do. Do Wheel straighteners, balancers, and aligners.. do Do. Do Whiting do Do. Do Winches and windlasses, hand and power operated. Window and door guards do Do. Do do Do. Da. Window sash and frames, metal and metal covered (except basement, utility, residencecasement, and residence double hung types). Wire shoe nails do Do. Do„^ do Do. Do Witherite do Do July r26,1946 Do Wool felt section pipe covering and blocks... X-ray sheets, gloves, aprons, and cooling hose. Dried primes, raisins, and zante currants, imported and domestic. Snap beans, canned and frozen (packed before Mar. 1). Fresh pears All Indefinite. .. do Do. July 28, 1946 Do .. do Permanent. do Indefinite. Aug. 1, 1946 Aug. 2, 1946 Do do Permanent. Bicycle tires (including sulky, racer, special thorn resisting tires, and special portable saw tires). Collar protectors (paper) . do Indefinite. do Do. Do Channel black, ordinary (used in production of rubber, color, and ink). Channel black, premium (sold by producers for 6 cents or less). Paper shirt bands do - Do. Do do Do. Do do Do. Do Paper shower curtains do Do. Do Paper shrouds and mortuary sheets do Do. Do Paper, head bands, neckbands, and other specialties for barbers and beauty operators Printing and decorating inks (except for printing textiles). Tie racks (paper) do Do. Do do ... - Permanent. Do - do Indefinite. Do Vanillin (used in drugs and cosmetics) do Permanent. Do Vinyl and styrene plastic materials...! . do - Indefinite. Do Waterproof papers (under GM PR) . do Do. Aug. 5, 1946 Do Animal glands, bile, and hog stomach linings. Brewer’s wet grains (the residue of barley malt alone or mixed with other cereal grain or grain products resulting from the manufacture of wort, which has not been dried or further processed and is used in the feeding of animals, and may include the whole or strained residue). Candied beef flakes do Permanent. do Do. Do do Do. Do Canned capanato (chopped eggplant relish).. do Do. Do Canned ground fish loaf.....—1 1— do Do. Do Canned trout . do Do. Do - Canned turtle meat do Do. Do Canned vine leaves do Do. Do Case hardening bone .. do Do. Do Chicken paste? do Do. Do Clam shells (cleaned, washed, graded, and ground). Dehydrated pet foods (made from gullets, lungs, melts, and udders of animals customarily slaughtered by the meat packing industry). Distiller’s wet grains (the residue or slop obtained in the manufacture of alcohol and distilled liquors from specified grain, or from a mixture of grains, which has not been dried or further processed, and is used in the feeding of animals, and may include the whole or strained residue). Evaporated goat milk do Do. Do do Do. Do do Do. Do do Do. Do - Fish' pastes. _ do Do. Do -• Frozen apricots (in containers of 10 pounds or more). Frozen peaches (in containers of 10 pounds or more). Frozen tamales (made from any meat except beef, veal, pork, lamb, or mutton). Imported angelica and angelica root do Indefinite. Do do Do. Do —— do Permanent. Do do Do. Do Imported apricot kernels , do Do. Do Imported baled stockfish .. do... Do. Do Imported bercy and bordelaise sauce do Do. Do Imported boniatos do Do. Do Imported canned crepe suzettes do Do. Do —— Imported canned fat, chicken and goose do Do. Do Imported canned haricots verts do Do. Do Imported canned or bottled babas aurhumm. do Do. Do Imported canned peeled grapes do Do. Do - Imported canned pumpernickel do Do. Do - Imported canned tripe a la mode . do... Do. Do Imported carob-bearis (sometimes known as St. John’s bread, locust-bean, honeybread, or algarroba). Imported crystallized flowers . do Do. Do do Do. Do — Imported dalmatian cherries (tree-dried cherries). Imported dried currants __.do_— Do. Do— do Do. Appendix to Price Chapters • 57 Table 4.—Releases from Price Control, July 25-Sept. 30, 1946—-Con. Effective date Commodity Level of action Period of release Aug. 5,1946 Imported Holland cheese sticks.-.- All Permanent. Do. Do. Do. Indefinite. Permanent. Indefinite. Permanent. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Indefinite. Do. Permanent. Do. Indefinite. Permanent. Do. Do. Indefinite. Permanent. Indefinite. Permanent, Indefinite. Permanent. Indefinite. Permanent. Do. Indefinite. Do. Imported newburg sauce _ do—— Do Imported Norwegian flat-bread (made of rye and barley flour). Imported pickled limes Imported processed citrus fruit (processed on or after Oct. 1,1945). Imported pumpkin, canned and frozen Imported spinach, cairned and frozen do.— Do Do do— — do Do Do do do Do Mineral mixed feed (at least 60 percent of which consists of a mixture of 2 or more chemicals or minerals with or without mixture with other ingredients and customarily regarded as a dietary factor in the feeding of animals and poultry). Octopus, dried and canned do. Do do Do - Oyster shells (the cleaned, washed, graded, and ground shells of oysters, including fresh dredged shells). Pearl barley (3-pound package or less) do - - Do do Do Pickled cantaloup. Z Z do Do Do- Pickled watermelon rind Salted sardine fillets (prepared as an anchovy substitute). Sardine and tomato paste do do Do . do Do- Steamed bone meal— do Do - Twist tobacco (rolled tobacco leaf, sweetened or unsweetened, commonly doubled or folded and having the ends of the roll twisted around each other). Aeroplane fabric (Government specification AN-C-121). Fresh red sour cherries Ground coal (used for foundry facings) Services of cleaning buildings, houses, or offices (except in conjunction with the construction, alteration, or repair of building structures). Services of water softening Services rendered in bagging smithing coal... do Aug. 7,W46 Aug. 8,1946 Do Do - do do do Supplier Do- Do- do do Do Aug. 12,1946 Aug. 13,1946 Do Smithing coal Z....Z ZZ Tapioca dextrine and vegetable adhesives (except sold or used as sizes and finishes in the textile, paper, or carpeting industry). Hand-woven fabrics and blankets (entirely of wool or cotton, except for the binding).’ Tank-truck transportation of liquid commodities (except milk). Cast-metal furniture Dealer All Producer. Supplier Aug. 14,1946 Do All - Crystal radio-receiving sets (except earphone attachments). Ink (small consumer size) Metal beach and lawn umbrellas do Do Do do do Do Novelty floor coverings (made one of a kind in size and pattern). Processed cherries, imported and domestic (except chocolate covered, blends with other fruits, and sirups). Scales (except bathroom) _do Do- . ..do Do - .do Do-—-- Sensitized photographic film, plates, and photosensitized materials (except amateur roll film, motion-picture film, and cartridges for amateur use). Therapeutic lamps (as approved by the medical associations). Automobile transport trailers .do Do do.— Aug. 16,1946 Do — . do . . Fish and seafood’ fresh and frozen (except salmon, tuna, sardines, alewives and herring, or pilchards). Low-bed machinery trailers . do - .. Do . .do Do — Midget passenger automobiles (retail f. o. b. factory price under $400 exclusive of taxes). Oil well drilling equipment trailers dO— -r — do Do - Do Public utility company trailers . do Do Rentals of all decontrolled items are exempted or suspended to correspond with status of the items. Rubber bands — . do Do do 58 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release Aug. 16,1946 Do Steelbound skid platforms All Indefinite. Sugarcane trailers ..—do Permanent. Do Trailers, boat, dump, horse, logging, and pole-Trailers, low-temperature ice cream and frozen food. Trailer parts (when sold for use as, or incorporation in, original equipment). Dried fruits (apricots, figs, peaches—including nectarines—and pears). Beeswax compositions (containing 50 percent or more beeswax). Cleaning fluids (based on sodium alkyl benzene sulfonate, household packages). Cyanides of alkalies and heavy metals, and their compounds (containing more than 25 percent of the chemicals, except silver cyanides). Dispersions of colloidal graphite (in any vehicle). Potato dextrine and products (containing 25 percent or more potato dextrine or starch). Rentals of buses (seating capacity of 10 or more). Rentals of trucks (over 40,000 pounds gross weight or complete with special body mountings, such as tank trucks, street sprinklers, snow plows, garbage trucks, or patrol wagons). Canned clam broth do Do. Do ..do Do. Do .do Do. Aug. 19,1946 Aug. 22,1946 Do do do Do. Indefinite. do Do. Do do Do. Do do Do. Do. .do Do. Do. do Do. Do do Do. Aug 26,1946 Do do Permanent. Canned sauerkraut with pork (containing by weight less than 20 percent pork). Chinese fortune tea cakes do Do. Do Do. Do Dehydrated sugarcane fiber . do - Do. Do Domestic sweet and sour chutney do _ Do. Do Malted milk tablets 1 do ... Do. Do Oleoresin paprika do Do. Do Pepper, ground and unground black and white, and cinnamon (imported and domestic). Plum pudding, canned, imported and domestic. Sauces, imported and domestic processed meat and fish (except when containing more than 30 percent of tomato solids of total dry solids). Soups, imported and domestic, canned and frozen (including all varieties of ready-to-eat soups, condensed soups, broths, bouillons, consomme, and chowders). Sirups, malt and maltose, bulk and packaged, liquid and dry. Baby and junior foods (except milk modifiers do— Do. Do do Do. Do do. .. Do. Do.. do.. . .. Do. Do do.... Do. Aug. 27,1946 do.... .. Do. Do or products used in the preparation of infant feeding formulas). White flesh table stock potatoes (except cer- do.... Aug. 28,1946 tified and war approved seed).4 American line hemp, hemp tow, flax line do ... .. Permanent. Do fiber, and flax tow. Imported vegetable wax products (items con- do Do. Do- taining not less than '3 percent of one or more of the following, carnaula, ouricury, or candelilla). Leather raw stocks, imported and domestic ;do. Do (antelope, badger, beaver, camel, carpincho, deer (except Jack and China buck), dog gazelle, ostrich, peccary, vis-cacha, zebra, aquatic, and reptile). Products with external surface consisting of do. . Do. Do. Aug. 30,1946 at least 90 percent of leather (including antelope, badger, beaver, camel, carpincho, deer (except Jack and China buck), dog • gazelle, ostrich, peccary, viscacha, zebra, aquatic, and reptile, except items made from scrap leather four inches square or less and sewed together with a zigzag or other stitch). Gum and wood rosin (and products contain- do ing by weight 50 percent or more of such rosins). 4 Extension of suspension due to expire Aug. 28, 1946. Appendix to Price Chapters • 59 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release Aug. 30,1946 Do Obsolete automotive replacement parts Producer... Indefinite. Do. Do. Do Rubber footwear — All Do Sterling-silver flatware do - Sept. 4,1946 Calcimine J do Cement retarder rock do Do. Do. Ceramic colors and decorating compositions.. do Do. Do Clay chimney pots and tops do Do. Dn Clay filter blocks .* do Do. Do Clay segment blocks do Do. Do Closet and slop bowls (produced in vitrified clay sewer-pipe plants). Color pigments, dry, flushed, and pulp (including cadmium pigments). Commercial blast-furnace slag (for chemical, industrial, constructional, and agricultural uses, except slag lightweight aggregates). Driers (metallic soaps) do Do. Do do Do. Do do Do. Do do Do Do Electrical clay conduit do Do. Do Floor hardeners do Do. Do. Do —- Ground or pulverized limestone (when sold for chemical and industrial uses). Gypsum retarder .. do Do— do Do Do Limestone (all sizes when sold as cement or do Do. Do — paper mill stone). Masonry waterproofing compounds (except bituminous roof coatings). Pipe compounds do Do. Do do • Do. Do Putty and caulking compounds do Do. Do Refractories (all types as defined in MPR 416 and MPR 592). Vitreous enamel frit (predominantly used in the vitreous enamelling of iron, steel, and clay products). Bladders, gas main and shoe do Do. Do do Do. Sept. 5,1946 Do do Permanent. Cosmetics “(retailing at 25 cents or less, before tax). Gloves, finger cots, and sleeves (for medical and mortuary purposes). Hard-rubber goods for medical and labora- do Do do.. Do. Do. do Do. Do - — tory equipment and parts). Hospital and surgical supplies (such as obstetricians’ aprons, operating cushions, patients’ bibs and throws, and surgeons’ and urologists’ aprons). Pastes and cements, flooring and wall-covering (such as linoleum paste, consisting primarily of a clay filler, a sulfite liquor binder and dissolved in water). Tire patches and boots (made from scrap material). Tire reliners (made from new and scrap materials). Tubing, stopples, and irrigators (for medical, dd Do. Do Do do Do do Do. Do do Indefinite. Do surgical, mortuary, veterinary, and laboratory purposes). Valves, tires and pneumatic oral inflated do Do. Sept. 6,1946 Fees and charges for maintenance of awnings Supplier Permanent. Do (except services in connection with original sales). Rates for live steam ..... do Do. Do - Starches, wheat and rice All Do. Do Sirups, wheat and rice - do Do. Do Wheat gluten - do. Do. Sept. 9,1946 Dry edible beans ------------ do Do. Packaged domestic whiskey (as defined in MPR 445, and bottled before Dec. 5,1933). Casein plastic material (in the form of sheets do Do. Sept. 10,1946 do Indefinite. Do rods, tubes, and preforms before fabrication or printing). Cellulose wadding (for surgical dressings). do Do. Do C hopholders - do Do. Do- Cosmetic protection specialties (used in dress shops, beauty parlors, etc.). Dish cloths do.... Do. Do - do Qo. Do Electricity and steam (private sales) Supplier... Do Gift tying tape do Do. Hoods (used in covering young plants, seed-lings, etc.). Imported fresh Isle of Pines grapefruit do—. Do. Do do Do. Do Incense cedar pencil slats do. Do. Do Litmus paper (treated) do Do. 60 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25-Sept. 30, 1946-—Con. Effective date Commodity Level of action Period of release Sept. 10,1946.. Do Machinery and equipment used in the production of rope and cordage (under RM PR 136). Machinery and equipment (subject to RM PR 136, .designed for and sold primarily for the commercial or industrial processing or preparation of food such as baking powder, cocoa, coffee, flavoring extracts, macaroni, salt, and sugar products). Marine-type terminal and stuffing tubes All- Indefinite .. do.— Do. Do do Do. Do (cable accessories). Milk bottle caps, closures, and hoods (all do Do. Do types). Motor toboggans do— - - Do. Do Motorcycles and motorcycle parts do Do. Do Open mesh bags (woven from paper twine)... ... do Do. Do Paper decorative novelties, confetti, garlands, streamers, bells (used in room and window decoration, including displays not used as containers). Paperboard flower pots and boxes do... Do. Do do Do. Do.— Paperboard garment hangers do Do. Do Paperboard luggage do Do. Do. Papers used in production of abrasive products (not including papers coated with abrasive materials). Pellet paper (used in production of explosives) Photomount stock (used in production of photograph mounts and easels). ' Racing-car tires and tubes (including those for midget racing cars). Set-up jewelry boxes (made of paperboard and paperboard combinations with other materials, used in packing jewelry sets and individual jewelry items, including fountain pens, wa tches, and razors). Sheets (used in lining cooking utensils, including liners, pads, and strips in connection with baking processes). Single use drip sheets for automobiles (specially designed for use in shipping automobiles.) Specially treated paper bags (for shipment of carbon black). Toilet-seat covers do Do. Do do Do. Do do Do. Do ■_ do Do. Do . do Do. Do .. do Do. Do do Do. Do . do Do. Do. .... do Do. Do Trucks (36-40,000 pounds gross vehicle weight) Adanter rings (photographic equipment) . do Do. Sept. 11,1946 Do do Permanent. Baby carriages, strollers, and walkers . do Indefinite. Do Bases for fountain pens and pencils and sets.. do Permanent. Do Blankets and comforters (with built-in electric heating elements except heating pads). Buckles and parts do Do. Do .. do Indefinite. Do Cable releases (photographic equipment) do Permanent. Do Camera spools and stands ' do Do. Do Cases for eye glasses, spectacles, sun glasses, and goggles. Comforters (except down and feather filled}.. do Indefinite. Do do Do. Do Darkroom timers —. ... do Permanent. Do Developing and fixing tanks . do Do. Do Dry batteries do Indefinite. Do — Easels (photographic equipment) ....do Permanent. Do —- Engraved, etched, cut, and sandblast glassware (designed for food and beverage use, except decorated items or those produced by aid of automatic machine feeders). Exposure meters do - Do. Do — do.-.- Do. Do Fasteners, clasps, etc. (except slide fasteners, and parts). Ferrotype plates do Indefinite. Do do Permanent. Do Film loaders, splicers, and viewers.. do — Do. Do . Flash bulbs. do Do. Do Flashlight attachments ... do Do. Do Floor coverings (made principally of fiber, grass, jute, hemp, or sisal). ’ Fountain pens and mechanical pencils and sets. Fraternal ware (under MPR 188) . do Indefinite. Do do Do. Do —— do Permanent. Do Furniture (made wholly or predominately of glass, mirrors, or plastics). do ' Do. Appendix to Price Chapters • 61 Table 4.—’Releases from Price Control, July 25—Sept. 30, 1946—Con Effective date Commodity Level of action Period of release Sept. 11,1946.. Furniture for porch, lawn, garden, and general outdoor use (except items made of stone, upholstered or padded sofas, chairs, and love seats with reed, bamboo, rattan, or metal frames). Glass slides (photographic equipment) All Permanent. Do do Do. Do Goggles and goggle lenses (except classified as industrial safety equipment). Hand operated insecticide sprayers and dusters. Hand operated lawn motors . do Indefinite. Do Do do - do Do. Do. Do Insignia (emblems and ornaments for decorative purposes). Ladder accessories and attachments .... . do Do. Do....... do. Do. Do Lens shades do Do. Do Motor scooters • do Do. Do Negative flies (photographic equipment) . do Permanent. Do.. Oilers. " 7. ... do Indefinite. Do Pads, high chair, play yard, basket and nursery seat, and other nursery pads (made with new or used filling materials). Pan heads (photographic equipment) do Do. Do do Permanent. Do -.. Portable air conditioning equipment (under 1 horsepower). Power lawn mower parts do Indefinite. Do do Do. Do Print and film washers and dryers . do Do. Do . ... Print pads, rollers, straighteners, and trimmers. Printers (photographic equipment) _ do Do. Do .. do Do. Do — Printing frames and masks (photographic equipment). Projection reels and cans .. _ .... do Do. Do .do Do. Do Projector screens do Do. Do Range finders (photographic ennipTnent) do - Do. Do Razors and razor blades .... do ........ Do. Do Reel cases (photographic equipment) do Permanent. Do Reflectors and stands (photographic equipment). Rewinders (photographic equipment) do Do. Do .... do - Do. Do Safelights and slides' (photographic equipment). Scythes and snaths Slide binders, mounts, carriers, files, and film projectors. Soap dispenser bowls. dn Do. Do do Indefinite. Do do Permanent. Do— do Do. Do Squeegees (photographic equipment) do Do. Do Stereoptieon machines (photographic equipment). Sun glasses do Do. Do . do Indefinite. Do Supplementary Iatiras and filters ._ do - Permanent. Do Television and receiving sets in combination radio sets. Tilt-tops (photographic equipment) Title outfits (photographic equipment) . do ' Do. Do do Do. Do do Do. Do Trays (photographic equipment) ...do - Do. Do Upholstered headboards ...do - Do. Sept. 12,1946. Sept. 18,1946. Do Noncarrier “field work” (performed by “independent contractors”). Aerial tramways^ Supplier - - AU - Do. . .do - Do. Do Asphalt plant circulators do --- Do. Dn Automotive maintenance and servicing brake testers. Belt lacing, fasteners, staples, and other belting accessories. Berets and other hair ornaments do -- Do. Do do Do. Do do Do. Do Bituminous heating kettles do Do. Do . ..do / Do. Do Bubble and fractionating towers _ ...do Do. Do Candlestick holders ...do Do. Do Charging equipment (for coal and gas plants). Concrete aggregate dryers .do Do. Do. do Do. Do Concrete chutes do - Do. Do. . Console sets do Do. Do Cosmetic containers do Do. Do Cottrell transformers (specially (Resigned for precipitation service). Diaphragms do., Do. Do .....do x— Do. Do Electronic heat generators (over 1 kw. rating, except parts). do Do. >4 - ' 725854—47---5 62 • Nineteenth Quarterly Report Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con Effective date Commodity Level of action Period of release Sept. 18,1946 Do Do Electronic precipitators (except parts) All Indefinite Do. Do. Electrostatic charge eliminators (except parts). Fabricated electrical coils, and fabricated coil-rewinding supplies for meters, generators, transformers, and related transportation equipment). Fire-alarm thermostats do do— Do do.. . Do. Do. Do Flares (for highway use, except truck and do . Do pyrotechnic flares). Flax scutching machinery and equipment do Do. Do _ (used in the textile industry to convert flax plants to flax fiber). Floating pontoons , do..—. Do. Do Flower holders - do Do. Do-_--.. Gas benches and retorts (for gas plants) .do Do. Do Grease and oil cups do Do. Do Hand operated pumps (including integral do Do. Do- and functional parts accessories, but not including store fixtures or those covered by MFR 246). Heat exchanger equipment (of the shell and do Do. Do tube type with a heat transfer area in excess of 50 square feet). Heaters (for concrete mixers, asphalt, surface and tank car). Heaters (stone, sand, and bitumen) do Do. Do do Do. Do High voltage insulation testers or test equipment (except parts). > Highway barricades do Do. Do do .. Do. Do. Do Holloware, dishes, and other plastic articles (for preparation, service, or storage of beverages and food). Impulse-testing equipment (including surge generators and cathode ray oscillograph, but not parts). Industrial brake linings do Do- do Do. Dol do Do. Do Industrial clutch facings ' do Do. Do Industrial mufflers and silencers do Do. Do Industrial spark plugs — do Do. Do - Klieg light type’motion picture lights (including arc and incandescent lamps and lighting equipment designed solely for use in commercial motion or still picture production and projection). Land planes do Do. Do do Do. Do Machine parts (by weight, 90 percent or more perforated metal). Metal cooling towers do Do. Do do Do. Do Mortar boxes _ _ do Do. Do Mud jacks do Do. Do Oscillographs (except parts) do Do. Do Photoelectric cells (except for use in exposure meters for photography). Plants (asphalt, bulk cement, soil stabilizer, but not including portable concrete plants). Plastic articles (designed for decorative uses do Do. Do . do Do. Do do .. Do. Do in households, except lamp bases). Poles and standards (for street lighting, overhead trolley lines, flood-lighting, and related electrical uses, except those made principally of wood). Poultry farm equipment .do Do. Do do . Do. Do Power operated animal clipping and shearing machinery. Power operated automobile washers do Do. Do .. do <_ Do. Do Power operated lumber carriers do Do. Do- Power operated garbage grinders (except those designed for domestic purposes). Radar assemblies (except parts) do Do. Do do Do. Do Road and sidewalk forms _ .. do Do. Do Scaffolds and construction towers do Do. Do Steel box T’s (for use in shoes) __ _ do Do. Do Street flushers - do . Do. Do Street sweepers < do - Do. Do- Stump pullers , t do Do. Do Superheaters, industrial and marine. do Do. Do Tank car boosters _ do Do. Do Wellpoint systems do .. Do. Sept. 24,1946 Industrial casein (inedible) do.. Permanent. Appendix to Price Chapters • 63 Table 4.—Releases from Price Control, July 25—Sept. 30, 1946—Con. Effective date Commodity Level of action Period of release Sept. 24,1946 Milk sugar (lactose) ? All Permanent. Sept. 25,1946 Imported commodities (under RMIPR), do Do except certain apparel items and fabrics and specified household linens. Packaged fuel, as defined (except charcoal)... :... .do Permanent. Sept. 27,1946 Canned and frozen apricots, plums, prunes, do Do. Do and their nectars, juices, of purees. Canned and frozen concord grapes and con- do Do. Do cord grape juice. Canned and frozen cranberries do ’ Do. Do Canned and frozen rhubarb, lentils, canned do Do. Do peas (fresh blackeye, crowder, cream, and field), and frozen broccoli, cauliflower, and turnips. Canned figs and fig paste do Do. Do Cranberry sauce and jelly do Do. Do. Do. Do Distilled vinegar do Do Domestic canned mushrooms do Do Frozen apples, apple juice, and applesauce... .....do Do. Do Frozen mixed fruits, mixed fruit nectars. do Do. Do.— juices, and purees. Frozen peaches, peach nectar, juice, and do Do. Do puree. Honey butter and imported and domestic do Do. Do.. chunk, extracted and Dyce processed hohey. Imported canned and frozen green peas, lima beans, asparagus, blueberries, and nectarines. Imported canned mixed vegetables (except containing 20 percent or more tomatoes and/or com). Imported frozen com do..... Do. Do. Do do Do do Do. Do Imported frozen mixed vegetables do Do. Do Mincemeat '. do Do. Do. Sept. 30.1946 Aluminum furniture (including upholstered do Do furniture with aluminum frames). Hospital bed accessories (such as, safety sides, end gards, irrigation rods, balkan frames and accessories, backrest, exercise bar, cardiac table, etc.). Rental of commodities for social functions... do Do. Do Supplier... Do Do Wrought iron furniture All Do. 64 • Nineteenth Quarterly Report • IV • TRANSPORTATION AND PUBLIC UTILITY RATES Common carriers and other regulated utilities proposed general increases in rates and charges in heavy volume during the quarter ended September 30,1946, necessitating Office intervention before the regulatory bodies having jurisdiction.1 At the same time, applications for individual upward rate adjustments were received in great numbers covering the related services of contract carriage, pick-up and delivery, storage and terminating, and a wide variety of accessorial items. TRANSPORTATION The Office received 1,948 notices from common carriers during the quarter, proposing changes in existing tariff schedules. This decline of about 30 percent from the total received during the previous quarter may be accounted for by the shorter period covered, since no notices were received during the temporary lapse of the Price Control Act, including most of July. Of the notices received, 14 were consolidated by the Office and made the subject of 12 formal protests to the appropriate Federal and State regulatory commissions on the grounds that the proposed increases could do injury to the national stabilization program. The bulk of the remaining notices were filed with the Office, largely as a matter of routine, to correct typographical errors in tariffs or to announce the expiration of rates which served special purposes. The proposed increases involved in 6 of the 12 formal protests by the Office were suspended by the appropriate regulatory bodies; in 3 other instances, the proposed increases were allowed to go into effect. Because of later evidence indicating the need for added revenues to continue essential service, the Office withdrew its formal protests in the remaining 3 cases. Railroad Rates During the quarter the Office continued its efforts before the Interstate Commerce Commission to prevent a more drastic increase in rail freight rates than was granted as an interim increase late in the preceding quarter.2 After adducing testimony in a series of hearings 1 Authority for Intervention in matters involving the rates of common carriers and public utilities was derived from the Stabilization Act, as amended, and the directives pursuant thereto which require all common carriers and public utilities to file notice of their proposals of general increases with OP A 30 days in advance of the proposed effective dates. Rates and charges of contract carriers and for services supplied by storage, terminal, and other such companies were under the direct control of the Office. * See Eighteenth Quarterly Report, p. 54. Transportation and Public Utility Rates • 65 and oral argument, the Office was committed to file its brief by October 25,1946. A protest against increased rates on canned goods between certain points in the Rocky Mountain area was filed and evidence submitted at a hearing which was held late in the quarter. Over Office protest, the Interstate Commerce Commission rendered decisions favorable to the rail carriers in cases involving increased rates for the transportation of coal from points in Illinois, western Kentucky, and Alabama to Gulf ports. Motor Common-Carrier Rates A number of individual motor common carriers raised their interstate freight rates up to the level previously permitted by the Interstate Commerce Commission to motor carriers generally in the different territories. Late in the quarter the Office filed a protest against increased motor common-carrier rates proposed for transportation of property between central territory and points east. The Interstate Commerce Commission declined to suspend the proposed rates, but indicated it would institute an investigation concerning their lawfulness. In California, motor common carriers proposed a number of general increases in their freight rates. Hearings were held in most of these cases and were pending before the California Railroad Commission at the close of the quarter. In other cases before that commission, certain increased rates were granted to intrastate motor carriers. On the whole, these increases were substantially smaller than those originally sought by the carriers. Contract Carrier Rates The falling off in applications for contract carrier rate adjustments during July, due to suspension of controls was followed by increased activity in August and September. Of the 62 applications acted upon during the quarter, the Office granted the requested increases in full or in part in 49 cases, and denied them in 3. One application was withdrawn by the carrier, and those remaining were either dismissed or canceled. In the contract carrier and unregulated common carrier fields, all water transportation, except that of coal along the North Atlantic seaboard, was decontrolled.3 Decontrol of other contract carrier services was given serious consideration during the quarter, with substituted truck for rail service scheduled as the first step in this program.4* 3 RSR 11: Amendment 90, effective July 26, 1946; Amendment 94, effective August 19, 1946; Amendment 100, effective October 1, 1946. * Amendment 104, RSR 11; effective October 21,1946. 725854—47----6 66 • Nineteenth Quarterly Report In the special category of pick-up and delivery carriers, the same falling off occurred in the number of applications for upward adjustments as previously noted in respect to other contract carriers, with parallel acceleration in the latter part of the quarter. A total of 455 applications for rate increases was granted in whole or in part during the quarter, while 10 applications were dismissed. As the quarter closed, plans were being perfected to handle applications for increases at every point where pick-up and delivery for the railroads was performed by the Railway Express Agency whose employees had been permitted a wage increase, on the grounds that such increases were mandatory under established wage-price policy.5 Rates for the transportation of coal from Hampton Roads, Va., to North Atlantic ports were established on a temporary basis, subject to revision when figures showing actual operations under private ownership become available. These rates were to expire October 31 and determination of the new level was to be made on the basis of actual operating figures since July 1. Rental of some of the heavier and more specialized trucking equipment was decontrolled during the quarter.8 The volume of applications for price determinations and price adjustments in respect to the truck and trailer rentals remaining under control (including dumptruck rentals), however, indicated a short supply of the smaller vehicles in the construction, road maintenance, and housing fields. Further decontrol of truck rentals therefore did not appear likely for the time being. Miscellaneous Rates During the quarter a report favorable to the position of the Office was issued by an examiner of the United States Maritime Commission in the case involving rates, fares, and charges to and from Alaska.7 The matter was scheduled for oral argument in November, after which time it would be submitted to the Commission. In another case, involving Alaska rates, the Office filed a petition of intervention and participated in a hearing which was held late in September. This Office also participated in hearings before the United States Maritime Commission and the California Railroad Commission involving increased charges for terminal services, such as loading and unloading, at California ports. These cases were still pending at the close of the quarter. 8 See Seventeenth Quarterly Report, pp. 4-6. 8 SO 129 : Amendment 35, effective July 26, 1946 ; Amendment 53, effective September 10, 1946. Amendment 7, MPR 571; effective August 22, 1946, Amendment 98, RSR 11; effective September 12, 1946. * ’ See Eighteenth Quarterly Report, p. 55. Transportation and Public Utility Rates • 67 PUBLIC UTILITIES A total of 352 notices of applications for increases in public utility rates was received during the quarter. More than half of all the notices, and about evenly divided, pertained to proposed increases in stockyard charges and to proposed increases in gas and electric power rates, the latter arising from the operation of so-called fuel clause provisions in existing schedules. The fuel clauses permit increases over the basic rates specified in the tariff schedules when the price of fuel rises. Notices of proposed increases in local telephone rates numbered 75 while notices of increases in local transportation rates totaled 37. All other notices together accounted for the remaining 38. Local Transportation In continued hearings in the matter of the application of the Chicago Surface Lines’ request for a temporary fare increase from 8 to 9 cents, the Illinois Commerce Commission suspended the proposed temporary tariff as well as the proposed schedule setting forth a permanent fare of 10 cents. The company had nearly concluded its direct case, in which the Office participated, as the quarter came to a close. The Office was represented in proceedings before the Pennsylvania Public Utility Commission in the matter of the Philadelphia Transit Co. In this case, the company had requested an increase amounting to more than 5 million dollars a year through the establishment of a 10-cent cash fare and three tokens for 25 cents instead of 8 cents cash and two tokens for 15 cents. During this period the commission’s staff continued cross-examination of company witnesses, primarily in reference to the valuation of property. Further hearings in this matter were scheduled for the month of October. The Dallas Railway & Terminal Co., operating surface cars and motor busses in Dallas, Tex., and surrounding communities, petitioned the City Council of Dallas for permission to increase fares from 7 cents cash and five tokens for 30 cents to 10 cents cash and four tokens for 30 cents. This increase would have increased revenues approximately 1^ million dollars annually. Participating in hearings during the month of August, the Office subsequently filed a formal memorandum with the City Council setting forth its position with respect to the proposed increase. No decision had been made by the end of the quarter. In the matter of the Indianapolis Railways, Inc., in which the Office had intervened, the Marion County Circuit Court at Indianapolis on August 12, 1946, awarded the company a temporary injunction 68 • Nineteenth Quarterly Report against the decision of the Indiana Public Service Commission which had permitted it to charge 25 cents for three tokens instead of 25 cents for four tokens. A condition of the decree was that the company deliver to each purchaser of tokens a redemption slip to be used for refunding of the excess charge if the company, after final hearing and appeal, should be held not entitled to charge the increased fare. The commission took an appeal from this interlocutory injunction. The company’s request for a permanent injunction was not heard during the quarter. The brief in the matter of the Gary Railways, Inc., case, previously heard before the Indiana Public Service Commission, in which the Office actively participated, was completed and sent to the commission and interested parties. This matter involved rates charged on intercity bus service between Gary and surrounding communities, the increases amounting to about $70,000 annually. Hearings were held during the quarter in the case of Southern Coach Lines, Inc., operating in the city of Nashville, Tenn., which proposed to raise its cash fare from 5 to 10 cents and to establish a token sale of five for 35 cents. The Office had protested this increase which would have cost the city’s residents about 1% million dollars a year. The Southern Coach Lines, Inc., is a subsidiary of the United Transit Corp., a holding company controlling some 20-odd local transit systems throughout the country. The immediate case involved consideration of contingent wage increases. The Office also appeared in the matter of an increase in street railway and bus fares sought by the International Railway Co. This company sought to eliminate its existing token fares in the cities of Buffalo and Niagara Falls with a resulting increase in revenues of approximately 2 million dollars a year. Telephone Rates The Illinois Commercial Telephone Co., a subsidiary of the General Telephone Association, proposed the largest single rate increase for telephone services since the start of the war, involving 183 of its exchanges and amounting to an increase in revenues approximating $900,000 per year. At the close of the period, hearings were still continuing at Springfield, Ill., in which the Office actively participated in association with the Illinois Municipal League, the State’s attorney general, counsel of numerous municipalities, and the Illinois Agricultural Association. The Washington Independent Telephone Association, comprising more than 50 Washington State telephone companies, applied for an upward revision of telephone rates in the State of Washington, where the applicant companies represent about 70 percent of the telephone which were scheduled to continue into October. The majority of notices of proposed increases received from small independent telephone companies were passed to file without action on the part of the Office due to the relatively small size of operations involved. Other Utility Matters Hearings in the matter of the increase in space heating rates of the Public Service Corp, of New Jersey before the New Jersey Board of Public Utility Commissioners, were concluded during this period, but no decision had been made before the end of September. Hearings were also completed in the matter of the petition for increased space heating rates for gas of the Jersey Central Power & Light Co. This company proposed an increase amounting to approximately $140,000 a year primarily affecting consumers of gas for house heating. The central point of the position taken by the Office, in association with counsel representing the municipalities affected, had to do with the reasonableness of the company’s depreciation charges. The California Railroad Commission on September 3 denied the request of the Office that an investigation be instituted into the propriety of the proposed rates of the Pacific Gas & Electric Co. and other west coast utilities. The three companies involved sought to reapply a dormant fuel clause which would permit additional revenue totaling more than 7 million dollars a year. The commission did grant, however, the right to intervene if and when any further hearings were held in the matters named. Sale of electricity and steam by other than regulated utilities was exempted from price control when furnished at prices no higher than would be charged for the same service by a regulated public utility. All sales of live steam used in manufacturing and processing operations were also decontrolled. Continued price control did not appear to be warranted in view of the small dollar amounts involved.8 8 RSR 11: Amendment 95, effective September 10, 1946: Amendment 96. effective September 6, 1946. 70 • Nineteenth Quarterly Report • V • RENT CONTROL PROGRAM Control over residential rentals, like other price controls, was suspended in the period between June 30, when the Emergency Price Control Act expired, and July 25, when the extension act of 1946 became effective. During the 25-day interim the Office received many reports of notices of rent increases and evictions from many parts of the country. Since most renting is on a monthly basis, however, and since notice of at least one month is generally customary before rents are raised, the volume of actual rent increases during the break in control was comparatively small. Under the extension act, June 30 rental ceilings were reinstated and landlords who continued to collect overceiling rentals were declared in violation of the statute. Landlords who had collected more than the maximum rents during the hiatus in control, however, were not required to refund the excess amounts. The eviction problem was a more serious one, not only because attempted evictions were widespread during the interim, but also because tenants actually evicted during that period could not regain possession. With the restoration of controls all uncompleted eviction proceedings by landlords who had not complied with the Office requirements as to evictions were barred.1 During the period July 25 through September 30, 23 new areas were brought under control, 2 existing areas were extended, 1 additional area was created by a division of an existing area, and parts of 2 areas were decontrolled. Establishment of rent control in the new areas was necessary to curb spreading rental pressures as the postwar housing shortage became a nation-wide problem. Expanding college enrollment under the veterans’ education program was the chief inflationary factor in 8 of the new areas. As of September 30, 1946, Federal rent regulations were in effect in 544 defense-rental areas including Alaska and Puerto Rico. The 542 areas in continental United States contained 73 percent of the total 1940 population and 85 percent of the 1940 nonfarm rental dwellings. A new responsibility was delegated to the Office during the quarter when the Office of the Housing Expediter directed the Office of Price Administration to take charge of the compliance and enforcement aspects of the Veterans’ Emergency Housing Program.2 The plan 1 See also Enforcement, pp. 88-89. 2 EPO 2, issued August 27, 1946. Rent Control Program • 71 adopted by the Office for this work, similar to its rent control enforcement procedure, was designed to get maximum voluntary compliance. The program had four major objectives: (1) To protect veterans’ preference rights; (2) to insure that houses built under the Veterans’ Emergency Housing Program conform substantially with the builders’ commitments in their priority applications; (3) to see that the houses sell at the maximum legal prices or less; and (4) to obtain compliance with the placard requirements of the program. AMENDMENTS AND INTERPRETATIONS The housing regulation was amended during the quarter to provide a waiting period of 4 months in eviction certificates granted veteran purchasers in areas in which the waiting period is usually 6 months, and of 2 months where the usual waiting period is 3 months.3 Formerly, the regulation authorized the rent director to waive a portion or all of the waiting period for a veteran purchaser under special circumstances. The amendment, continuing the veterans’ preference, was designed to assure uniform administration throughout the country. At the same time a provision was added to the eviction section of the housing regulation making it mandatory for a landlord whose petition for an eviction certificate is pending, to notify the area rent director in writing of any change in his intended use of the premises. If he has obtained a certificate and does not intend to use the premises for the purpose specified in the certificate, he must give a similar notice and surrender the certificate to the area rent director for cancellation.4 An amendment was issued to clarify the provision requiring notices to be given to the area rent office and the tenant prior to commencing an action to remove or evict the tenant. The time of commencement of certain actions was defined.6 The housing regulation was further amended to clarify the provision restricting evictions for purchaser-occupancy in cooperatives.6 The provision was intended to apply to all types and classes of cooperatives, regardless of whether the right to possession of an individual unit was formalized by a proprietary lease.7 The amendment eliminated a possible ambiguity in the provision. A provision was added to the hotel and housing regulations exempting from control during the winter of 1946-47 winter resort accommodations which were not rented during the summer of 1946 and which customarily had been rented or occupied on a seasonal basis prior to 3 Amendment 101, Housing Regulation, effective September 20, 1946. «Ibid. 8 Amendment 94, Housing Regulation, effective July 26, 1946. 8 See Thirteenth Quarterly Report, p. 35. T Amendment 94, Housing Regulation, effective July 26,1946. 12 • Nineteenth Quarterly Report the effective date of rent control in the area.8 Similar exemption had been given in the past to summer resort accommodations. The regulations were amended to provide that the demand, receipt, or retention of a security deposit, contrary to the provisions of the regulation, between the date the Emergency Price Control Act expired and the date it was reinstated, should not be considered a violation. The landlord, however, was required to refund the amount involved within 30 days after July 25,1946,® the date the act was reinstated. The New York City Hotel Regulation was amended to permit the filing of an application 'for relief by any transient hotel, or other establishment under the regulation having more than 50 rooms, whose operating position for the calendar year 1945, after appropriate allowance for wage increases in effect which had been approved by the Wage Stabilization Board, would have been less favorable than the average of any two successive years selected by the landlord from 1939 to 1942, inclusive. The amendment was directed solely to meeting the situation which arose from the general increase in hotel wages in the New York City area since January 1946 and approved by the Wage Stabilization Board prior to the effective date of the amendment, and relief was limited to establishments applying prior to December 1, 1946.10 An official interpretation was issued during the quarter to explain the effect of the restoration of rent control on eviction actions pending on July 25,1946. A tenant still in possession on that date was again entitled-to the protection of the eviction provisions of the regulation. Another interpretation was issued explaining the requirement of the regulation with regard to refund of security deposits collected during the period of suspension of controls. AREA OFFICE OPERATIONS Area offices reported a net increase of 339,413 housing registrations dtiring July-September quarter, bringing the total number of housing registrations on file to 16,142,358. During the same period a net increase of 15,333 hotel and rooming house registrations covering 87,492 rooms or dwelling units brought the number of hotel and rooming house registrations to 537,729, covering 4,132,557 rooms. More than 52 percent of. the housing registrations received during the quarter was for accommodations rented for the first time after the maximum rent date, the cumulative number of such registrations being 3,598,375. Likewise, 72 percent of the hotel and rooming house registrations filed during the quarter was for units rented for the first time since the maximum rent date, bringing their number to 1,037,781. 8 Amendment 100, Housing Regulation, effective September 18, 1946; Amendment 94, Hotel Regulation, effective September 18, 1946. 9 Amendment 97, Housing Regulation, effective July 26, 1946; Amendment 90, Hotel Regulation, effective July 26, 1946. 19 Amendment 28, New York City Hotel Regulation, effective September 18, 1946. Rent Control Program • 73 A total of 93,486 landlords’ petitions for upward adjustment of rents were processed during the quarter; 58,404 increases in rent were authorized, while 60,804 actions were pending decision at the end of September. Since the inception of rent control, 1,558,248 landlords’ petitions had been disposed of, and 900,745 upward adjustments granted. Violations of the regulations are generally revealed by tenant complaints and administrative operations in the area offices. During the quarter 139,211 compliance actions were processed and compliance was obtained in 89,257 of these actions. At the end of September, 91,446 docketed compliance actions were pending settlement or adjustment. The area rent director may, on his own initiative, reduce maximum rents for housing accommodations rented for the first time after the maximum rent date to the rent for comparable accommodations in the area on the maximum rent date. The rent director may also require restoration of services or other rent reductions commensurate with failure to maintain services and equipment. During the quarter 135,824 director’s initiative actions were disposed of, and 75,984 adjustments and orders were entered. There were 124,925 docketed director’s initiative actions pending decision at the end of September. PROTESTS AND REVIEW PROCEEDINGS Any landlord who is dissatisfied with an order issued, by an area rent director may obtain administrative review on application to the regional office, and, in addition, he may request the Administrator to review such order. As of September 30, 1946, landlords had filed since the institution of Federal rent control a cumulative total of 41,773 applications with regional offices for review of orders issued by area rent directors, disposal had been made of 38,851, and 2,922 cases were still pending decision. In addition, these landlords had applied to the National Administrator for further administrative review in a total of 1,256 protests. Disposal of these cases resulted in the denial of 568, 17 of which were later reopened. Grants in whole or in part were made in 144 cases, 1 was remanded to the region, and 236 others were dismissed or withdrawn. At the end of the quarter, 324 protests were still pending before the Administrator. Requests for consideration by a board of review were received in 48 cases during the quarter. Hearings were held by boards of review and subcommittees in 13 cases, and recommendation for the disposition to the protests were submitted to the Administrator in 18 cases. The remaining cases were still pending at the close of the quarter. During the 3 months ending September 30, 1946, landlords filed 3 protests against maximum rent regulations. Since the inception of 74 • Nineteenth Quarterly Report rent control a total of 258 such protests had been filed, 4311 of which were directed against the hotel regulation, and the remaining 215 involved the housing regulations. Protests had been received from a total of 65 areas. Nine protests were pending before the Administrator at the end of the quarter. A cumulative total of 170 protests had been denied, 53 dismissed (including 2 cases in which relief was granted), and 26 withdrawn. Landlords dissatisfied with any of these decisions have the privilege under the Emergency Price Control Act of appealing to the Emergency Court of Appeals, a court set up for the purpose of hearing cases arising under the act. A summary of the court’s decisions on rent control cases during the third quarter is given in the following chapter.12 VETERANS’ SALES CONTROL Plans were carefully worked out during the quarter for smooth launching of the compliance and enforcement program in connection with veterans’ housing, responsibility for which had been delegated to the Office during the quarter. Specifically, the Office was authorized to conduct such investigations as might be necessary to ascertain violations of Priorities Regulation 33 and Housing Expediter Priorities Regulation 5 with respect to sales price, rent} cost, construction, preferences for veterans, occupancy or disposition of dwellings, applications and the posting of placards. And where such violations are found: (1) To institute such civil proceedings, in the name of the Price Administrator, as may be appropriate with respect to such violations, and to intervene in any civil proceedings in which such violations are involved. (2) To revoke, deny, or suspend authorization and priorities assistance under Priorities Regulation 33 and Housing Expediter Priorities Regulation 5 where the Price Administrator or his designated representatives determine, after appropriate administrative hearings, that such violations result or threaten to result in the use of materials or facilities in a manner inconsistent with the purposes of the Veterans’ Emergency Housing Act of 1946. (3) To certify the facts of such violations to the Attorney General, whenever the Price Administrator, or his designated representatives, believes that any person is liable to punishment under the criminal laws of the United States or the provisions of the Veterans’ Emergency Housing Act of 1946. u One protest was made against both Housing and Hotel Regulation. 13 See Emergency Court of Appeals, pp. 80-84. Rent Control Program • 75 ( 4) To take such other action, or otherwise dispose of such violation as may be appropriate. For the purpose of investigating and disposing of such violations, the Office of Price Administration was authorized to exercise, to the extent necessary, the functions, powers, authority or discretion conferred upon the Housing Expediter by the Veterans’ Emergency Housing Act of 1946 and Directive 42 of the Civilian Production Administration. At the end of the quarter plans were in readiness for the start of the program early in October. 76 • Nineteenth Quarterly Report • VI • EMERGENCY COURT OF APPEALS Established by the Emergency Price Control Act of 1942 to pass upon the validity of regulations or orders issued under the act, the Emergency Court of Appeals had received a total of 371 complaints by September 30, 1946. Of these, 268 involved price regulations or orders, and 103, rent regulations or orders. During this period, 296 cases were disposed of by decision of the court or by agreement of the parties, 262 cases were decided in favor of the Administrator, and 34 decisions were adverse in whole or in part. In the third quarter of 1946, 20 complaints were filed with the court, 18 of which affected price control, and 2, rent control. As of September 30, 1946, a total of 75 complaints were pending in the court. PRICE CONTROL CASES Eleven cases affecting maximum price regulations or orders were disposed of by the court during the quarter, 10 favorably to the Administrator. The opinions rendered by the court during the quarter are described below. The Great Atlantic & Pacific Tea Co. Authority of the Price Administrator to prohibit the importation into the United States of green coffee purchased abroad at a price higher than the prescribed maximum price was upheld in this case.1 The provision challenged, section 1 (a) of Revised Price Schedule 50, provided that no person shall buy, offer to buy, attempt to buy, import or receive, in the course of trade or business, green coffee at prices higher than the established maximum prices. The court first pointed out the importance of this type of regulatory provision to the price control program in preventing limited supplies from being secured abroad by American importers able to absorb losses or willing to resell at black-market prices, with consequent pressures on domestic price ceilings. It then proceeded to reject the complainant’s prime contention that Congress had not granted authority to the Price Administrator to impose such a limitation. The court’s opinion stated that this provision “may reasonably be deemed necessary and appropriate to prevent circumvention of the prescribed maximum prices for sales of coffee within the United States and to assure an equitable distribu 1 Great Atlantic & Pacific Tea Co. v. Porter (No. 282, E. C. A., decided August 13, 1946) 156 F. (2d) 812. Emergency Court of Appeals • 77 tion of the commodity, and falls within the broad discretion conferred on the Administrator by section 2 (d) and 2 (g) of the act.” The Ebling Brewing Co., Inc. In this case2 the United States Emergency Court of Appeals upheld a provision of the price regulation for domestic malt beverages which required the price of a new product to be determined by reference to the established price for a similar product of the manufacturer, and in the event it could not be so determined, by reference to the established price for a similar product of the manufacturer’s closest competitor. The Price Administrator’s explanation that the provision operated in effect as a highest price line limitation was accepted, although this had not been offered in support of the provision in the formal statement of considerations accompanying its issuance. The court expressed the opinion that when the validity of a regulation is attacked, the Price Administrator may advance reasons for its adoption in addition to those set forth in the statement of considerations. Notwithstanding the fact that the brewer protesting the regulation was not currently producing his similar base-period product and had established the price of his new product by reference to the established price of his competitor’s product prior to the adoption of the regulation, the court approved the Price Administrator’s order that the brewer roll back the price on his new product to that of his similar base-period product. In so ruling, it recognized that an established maximum price is not extinguished when the sale of the commodity is discontinued and that sellers do not have a vested right in an established maximum price. The validity of price-line limitations and freeze-type regulations was reaffirmed in the decision. An interesting point of administrative res judicata raised by the Price Administrator was not ruled upon because the protest involved had been denied upon the merits after a full reconsideration of objections advanced in an earlier proceeding. The court observed, however, that were a second protest denied not upon the merits, but upon the ground that the issues raised had already been determined in a prior proceeding, the court might be justified in dismissing the complaint upon the ground that the second protest had been properly denied upon the principles of res judicata. Jo Van Der Loo In this case3 the court dismissed a complaint filed against the provisions of Maximum Price Regulation 330, which, in general froze 4 The Ebling Brewing Co., Inc. v. Porter (Nos. 180 and 261 Consolidated, decided August 14, 1946), 156 F. (2d) 1012; cert den. Nov. 25, 1946. 3 Jo Van Der Loo v. Porter (No. 310, E. C. A., decided September 5, 1946), — F. (2d) —; cert, den., Nov. 12, 1946. 78 • Nineteenth Quarterly Report the retailer of women’s outerwear to his base-period, mark-up for garments having the same cost price as those in the same category during the base period. The base period extended from August 1 to December 31,1941. The mark-up to be used under the regulation was the one taken on the greatest number of garments having the same cost price in the same category during the base period. The complainant asserted that, having become overstocked, she had had a clearance sale which extended throughout most, if not all, of the base period. Consequently, in a number of price lines the largest number of garments was sold at or below cost or at very little above cost. She claimed that the regulation, properly interpreted, did not require her to sell at her base-period rate those price lines which she had sold at or below cost during the base period. She further claimed that if the regulation were otherwise interpreted, it was invalid in that it placed her in an unfair competitive position by compelling her to choose between dropping a number of price lines she usually handled or selling them below cost, while at the same time permitting her competitors to sell the same merchandise at higher prices. There was pending, at the time, an enforcement action against the complainant, based upon sales at mark-ups in excess of those permitted by the regulation. In this action, an injunction was issued against complainant, the court having adopted the Administrator’s interpretation that complainant was frozen to her base-period selling prices even though these prices were at or below cost. A protest filed by the claimant was denied. The regulation was subsequently amended so as to permit retailers to take an optional mark-up in certain circumstances which included the position in which the complainant found herself. The complainant thereupon filed a complaint in the Emergency Court of Appeals, conceding that prospective relief had been granted, but attacking the validity of the regulation during the period prior to the amendment. In dismissing the complaint, the court held that it was bound by the enforcement court’s determination of the question of interpretation. It held further that whether a regulation is generally fair and equitable is measured by its effect upon the whole industry, not on a particular individual, and that the fact that complainant may have been frozen at a competitive disadvantage in which she had placed herself did not render this regulation invalid. Finally the court, pointing out that complainant’s peculiar situation resulted from an unusual clearance sale extending throughout the lengthy base period, held that the regulation was fair and reasonable on its face and would not be held to be invalid because, on further consideration, it was found that some in the industry had suffered hardship. A purpose of the protest proceeding was to give the Adminis Emergency Court of Appeals • 79 trator an. opportunity to reexamine the regulation so as to determine whether it should be amended so as to deal more equitably in the future. The court said, “It was not expected that amendments would operate retroactively or that they would be held to establish or admit invalidity of the original regulation.” Halibut Producers Cooperative A cooperative of halibut fisherman4 objected to Maximum Price Regulation 203 on several grounds, principally that it was in violation of the 1943 Taft amendment which barred grade labeling and restricted the use of standards in setting ceilings (sec. 2 (j) of the Emergency Price Control Act of 1942, as amended). This regulation established maximum prices for vitamin natural oils at 14 cents per million units for oil 40,000 units per gram or less, and for oils between 40,000 and 200,000 units per gram at 14 cents plus an additional 1 cent for each 1,000 units per gram above 40,000. Concentrates (including by definition natural oils more potent than 200,000 units per gram) were priced at 30 cents per million units.5 The complainant asserted that the industry practice was not to price vitamin A materials solely on the basis of potency, but rather to determine price primarily by reference to the quality of the oil. In the statement of considerations accompanying the issuance of the regulation, the Administrator had stated that “the less oil there is, the higher is the price” and “the potency is one major test of quality.” He had found a broad correlation between potency and quality and between potency and price. In deciding the case in favor of complainant, the court did not discuss the applicability of the Taft amendment, but set aside the regulation on its finding that the regulation embodied arbitrary classifications. It felt that the record did not substantiate the Administrator’s contention that there was a reasonable basis for establishing maximum prices of vitamin A oils by reference to the potency of the material. The court relied principally on evidence introduced by the complainant showing sales by it and by anotlier company prior to price control which showed some low-potency oil having been sold at higher prices than high-potency oil. The court held that complainant’s evidence established a prima facie case that in the industry potency was not determinative of price and that the Administrator had not introduced evidence to rebut complainant’s prima facie showing. The court said that statements of * Halibut Producers'Cooperative n. Porter (No. 290, E. C. A., decided September 11, 1946), 157 F. (2d) 332. # The Emergency Court had previously upheld the pricing of concentrates. Vitamins, Tnc. V. Bowles. 149 F. (2d) 497. See Fourteenth Quarterly Report, pp. 60-61. 80 • Nineteenth Quarterly Report considerations by the Administrator are not evidence in a proceeding and cannot be relied upon to support the Administrator’s action if a complainant submits specific evidence contraverting facts set forth in the statement of considerations. RENT CONTROL CASES The court disposed of nine cases involving rent regulations or orders. The more important opinions of the court are described in the following pages. Most noteworthy is the New York rent case, in which the court once again upheld the basic standards employed by the Office in determining when a regulation is “generally fair and equitable.” 315 West 97th Street Realty Co., Inc. This case 6 involved the validity of the Rent Regulation for Housing in the New York City defense-rental area insofar as it applied to all apartment houses in that area. The complainants there claimed that the regulation was not generally fair and equitable for two reasons. They urged first that the operating position of landlords of apartment houses generally in that area did not compare favorably under rent control with their over-all operating position in the applicable prewar base period. They contended secondly that, in any event, the regulation was not generally fair and equitable on the ground that it did not permit landlords of apartment houses generally in New York City a fair return. The court had by a previous judgment entered on June 25, 1945, set aside the regulation insofar as it applied to apartment house units in the so-called luxury group.7 That judgment was based in large part upon the results of a survey of the operating position of apartment houses in this area conducted by the Office and completed in November 1944. Upon petition of the Price Administrator, that judgment was vacated on July 9, 1945, and the case restored to the calendar for rehearing. The Administrator’s petition for rehearing was accompanied by a survey of operations of apartment houses in this area for the full year under rent control (1944), as opposed to the November survey which had included a period during which rent-control had been effective for only a short time. Although the latter survey showed on its face that the over-all operating position of landlords of apartment houses generally in New York City was more favorable under rent control than during the applicable base period, complainants made various contentions directed to the accuracy of the results shown by that survey. These 6 315 West 97th Street Realty Co., Inc. v. Porter (No. 166, E. C. A., decided August 23, 1946), 156 F. (2d) 982 ; cert. den. Jan. 6, 1947. 1 See Fourteenth Quarterly Report, pp. 62-64. Emergency Court of Appeals • 81 contentions—including claims that the survey should have been weighted in the manner suggested by the complainants, that the figures shown by the survey did not make allowance for “deferred maintenance” or for various anticipated increases and expenses—were rejected by the court. With respect to the contention that the regulation was not generally fair and equitable because it prevented the “rental housing industry from receiving a fair return on its investment,” the court pointed out that under the standards of the Emergency Price Control Act of 1942, as amended, the Administrator was not required to insure the industry an over-all fixed percentage return. In this connection, the court pointed out that although “the statutory standard contemplates that maximum rents must provide landlords with profits reasonably calculated to sustain the industry,” the criterion to be used in making such determination “is whether the net return of the rental housing industry under the regulation is at the level enjoyed in the most recent period in which rents had not been influenced by defense activities.” The court went on: “We think that this is all that the act requires and that the Administrator, under this temporary emergency act, is not required to consider and decide the difficult, involved and long debated problems of cost versus sound investment and of the adequacy of varying rates of return with which he would have to wrestle if he were under the duty to fix maximum rents at a level which would assure to landlords generally a fixed rate of return on their investment.” The court accordingly ordered that the complaint be dismissed. Stanley W. Taylor The complaint in this case 8 centered about the complainant’s claims that he had effected a major capital improvement and that he had changed various accommodations from fully furnished to unfurnished. Virtually all of these claims had been rejected in various forms in enforcement proceedings, decided by other Federal courts. The complainant not only asked the Emergency Court of Appeals to review the decisions of such Federal courts but also claimed (1) that the provisions of the rent regulation under which he asserted the major capital improvement and the changes from fully furnished to unfurnished were invalid for indefiniteness; (2) that the regulation was not generally fair and equitable; and (3) that the statute itself was unconstitutional for the reason that in the enforcement proceedings in other Federal courts judgments had gone against him without adequate opportunity to test the validity of the Administrator’s rent regulations and orders. « Taylor v. Porter (No. 279, E. C. A., decided July 31, 1946), 156 F. (2d) 805; cert. den. Nov. 18, 1946. 725854—47----7 82 • Nineteenth Quarterly Report In rejecting complainant’s contentions the Emergency Court of Appeals pointed out that the provisions of the Rent Regulation for Housing in issue were definite and certain, and readily understandable. The court also noted that the general fairness of the regulation was apparent and that the contention that it did not comply with the standards of the statute was without merit. With respect to the argument that the statute itself was unconstitutional on the ground that complainant had been unable to test out the validity of the regulation and orders issued thereunder prior to conclusion of the enforcement proceedings against complainant, the court observed that such question was open for complainant in various Federal courts, had been raised in such courts and had been decided adversely. It declared that the amendment which added section 204 (e)9 to the Price Control Act rendered academic the question posed, and that in any event complainant had had adequate opportunity, even in the absence of section 204 (e), to secure a determination of the validity of the regulation and orders issued thereunder long prior to conclusion of the enforcement proceedings in which he was involved. In concluding, the court pointed out that it had no authority under the statute to review decisions of other Federal courts, as complainant had requested. W. Adolph Peters The court held in the Peters case10 that there was substantial evidence in the record to support the Administrator’s conclusion that, pursuant to section 5 (c) (1) of the Rent Regulation for Housing, the maximum rent for the complainant’s accommodations should be decreased to $25 per month, based on the rent generally prevailing in the defense-rental area on the maximum rent date for comparable accommodations. The court determined, however, that the complainant was “not at fault” within the contemplation of section 4 (e) in failing to file a new registration statement within 30 days after conversion of the accommodations from a three-room and store unit into a four-room dwelling unit since any such requirement was “so concealed in the language of the regulation as not to be apparent to a landlord of reasonable intelligence.” Hence, the court concluded that complainant should be relieved of the obligation to refund excess rents collected subsequent to the conversion, which the Administrator had based on failure to file a registration statement within 30 days after the conversion. 8 This section, added by the Stabilization Extension Act of 1944 allowed a defendant in Emergency Court of Appeals • 83 Hotel Enterprises The Administrator had denied the request of Hotel Enterprises,11 a partnership operating the Cherokee Hotel, for adjustment based upon the “seasonal demand” provision (sec. 5 (a) (7)) of the Hotel Regulation for Tallahassee, Fla., on two grounds: (1) The factors relied upon, including the convening of the State Legislature at the State Capitol biennially, did not represent a situation embraced by that section; and (2) the regulations as written and applied did not, in any event, permit retroactive adjustment of maximum rents for the April-May 1945 session since the petition for adjustment was not filed until after the close of that session. The Administrator’s determinations were based upon the wording and purposes of the provision and the position with respect to retroactive relief approved by the court in the case of Goodman and Mandel/man v. Bowles?2 In setting aside the Administrator’s order denying the protest, the court remanded the case to the Administrator for further proceedings, and held that as a matter of law the complainant’s situation—if established by the facts—fell within the spirit of the “seasonal demand” provision of the regulation, and that on the peculiar facts disclosed by the record, authority existed to grant the retroactive relief sought by the complainant. In this connection the court found that the provisions of the Procedural Regulation for rent as well as previous administrative opinions had qualified to some extent the rule stated in the Goodman case relied upon by the Administrator, so that the rule presented no bar to granting the relief requested. Direct Realty Co. The sole question presented in this case13 was whether the complainant had been denied procedural due process of law by reason of refusal of the Administrator and his subordinates to grant complainant a hearing for the receipt of oral testimony. While such oral hearings had been denied by the area rent director and regional administrator under circumstances which might lead to the conclusion that complainant had been misled as to the appropriate procedure, the Administrator, by an intermediate order in the protest proceedings, pointed out that a Board of Review considers the protest upon a completed evidentiary record and does not take evidence, and that in order to obtain a hearing for the receipt of oral testimony complainant would have had to show, as required by the applicable pro 11 Hotel Enterprises, Inc. v. Porter (No. 302, E. C. A., decided September 13, 1946), 157 F. (2d) 690. A petition to vacate judgment and for rehearing was filed on behalf of the Price Administrator with the Emergency Court of Appeals on October 1, 1946, and was denied Dec. 6, 1946. «138 F. (2d) 917 (E. C. A. 1943). 13 Direct Realty Co. v. Porter (No. 301, E. C. A., decided September 17, 1946, 157 F. (2d) 434. 84 • Nineteenth Quarterly Report cedural regulation, that such a hearing was necessary for the fair and expeditious disposition of the protest. The court stated that the restriction of the functions of the Board of Review to consideration of a completed record was in accordance with congressional intent, that the requirement of a showing as to the need for a hearing for the taking of oral testimony was reasonable, that the explanation and opportunity afforded complainant by the Administrator to make the necessary showing was sufficient to satisfy the requirements of due process, and that complainant had failed to make any such showing. Accordingly, the complaint was dismissed. Sugar Rationing • 85 • VII • SUGAR RATIONING Sugar rationing continued without break throughout the third quarter of 1946 despite the 3-week suspension of price controls following termination of the Emergency Price Control and Stabilization Acts on June 30. Authority to carry on this function was delegated by the President in Executive Order 9745 providing for administration of certain OPA functions on an interim basis, pending further legislative action on price control and stabilization. The rationing functions of the Office had been exercised throughout the war by delegation from the President under title III of the Second War Powers Act.1 Controls were somewhat tightened duripg the quarter through a revision of the definition of sugar. The Department of Agriculture had previously clarified and amended its definition of sugar, principally for the purpose of preventing further diversion of sugar into sweetenings that were not clearly deemed to be sugar under the former definition.2 In addition, reports of abuses of the ration banking privileges by retailers and wholesalers, leading to serious leaks in the ration system, made it necessary to provide OPA district offices with authority to close the ration bank accounts of wholesalers and retailers who overdrew their accounts.3 ALLOCATION AND DISTRIBUTION The allocation for civilian distribution during the third quarter finally was established at 1,728,000 short tons, raw value, as compared with an original allocation of 1,753,000 short tons. Recovery during the quarter of some of the excess distribution reported during the first half of the year, aggregating about 150,000 tons, was anticipated. The maritime strike in September on all United States coasts left ships lying in the harbors full of sugar which could not be unloaded. A protracted truck strike in New York, which prevented local deliveries in the large metropolitan area, further contributed to an acute shortage situation. Those sections of the country which could be served from beet-sugar supplies were well provided for, however, and demand in these areas was adequately filled. The plan to provide for deficit areas in the States of Ohio, Indiana, Texas, and lower Michi 1 See Sixteenth Quarterly Report, pp. 100-101. * Amendment 20, 3d Rev. RO 3 ; effective August 22,1946. • Amendment 19, 3d Rev. RO 3 ; effective August 30,1946. 86 • Nineteenth Quarterly Report gan got into full swing by the beginning of August and these areas were also well taken care of. In addition, beet-sugar supplies were able to offset to a large extent the lack of Hawaiian raws on the west coast. The serious results of the strikes were felt chiefly on the eastern seaboard. While refineries were able to deliver moderate quantities from stocks held prior to the maritime strike and received during a few days while strike conditions were eased, this flow of sugar was not sufficient to provide fully for demand in this part of the country. Plans were made during the quarter for distribution in deficit areas in the October-December period. Lower Michigan was no longer included among these since harvesting of the State’s beet crop was to begin in October. It was estimated, however, that Ohio, Indiana, and Texas would need approximately 1,250,000 bags of beet sugar to provide for fourth quarter demand. Another deficit area was set up for this quarter, comprising the western parts of the States of North Carolina and Virginia and parts of West Virginia, Kentucky, Tennessee, and Georgia. Supplies from Louisiana refiners, augmented by the harvesting of the mainland cane crop in that State were counted upon to take care of this area. The anticipated recovery in the fourth quarter of an additional part of the overdeliveries of the first half of the year were expected to bring total calendar year deliveries closely in balance with the calendar year allocation of 5,400,000 short tons, raw value. CONSUMER AND INSTITUTIONAL RATIONS Spare Stamp 49, validated May 1 and scheduled to expire August 31, was extended for 1 month through September 30, when it appeared that consumers in certain sections of the country, primarily the East, would be unable to obtain the sugar chiefly because of strikes in the area. Spare Stamp 51 was validated September 1 and scheduled to expire December 31, 1946.. Home Canning Stamps 9 and 10 continued valid through October 31.4 As of July 1, small hospitals, which had been handicapped in securing sugar through use of their patients’ ration books, were permitted to register and receive allotments in the same manner as other hospitals. The Office and the Department of Agriculture also decided in August to allow institutional users, such as logging camps in isolated localities, to receive special allotments totaling a maximum of 6 pounds * Amendments 7 and 8, Supplement 1, Sd Rev. RO 3; effective August 30 and August 31, 1946. Sugar Rationing • 87 of sugar per man per month.8 This action was necessary to enable such workers to obtain their caloric food requirements. Provisions were also made for relief of institutional users who suffered hardship because of the change in the definition of sugar. INDUSTRIAL USER RATIONS Rationing levels for industrial users for the third quarter were as follows: All nonprovisional users, except manufacturers of pharmaceuticals and of jams, jellies, preserves, and fruit butters, 60 percent of 1941 base use; manufacturers of pharmaceuticals 120 percent of 1941 base use; manufacturers of jams, jellies, preserves, and fruit butters 55 percent of their base (total sugar use for civilian distribution plus half of sugar use for noncivilian distribution during 1944). Provisional users were permitted 90 percent of the sugar used per unit packed in 1941. Unchanged levels for the fourth quarter of the year were announced September 15. Regulations applying to veterans who wished to establish businesses using sugar were eased somewhat in July. Veterans who had sold their businesses to other than members of their immediate family upon entering military service were placed in the same position with respect to sugar allotments as before selling their businesses. Special veteran provisions were also extended to United States citizens who had served in the armed forces of Allied nations during World War II. Permission was given veterans to establish a sugar base during their terminal leave. The liberalized order also made it possible for veterans to enter into another business involving a sugar base at any time within a year of obtaining the original base.6 » Amendment 8, Rev. Gen. KO 5; effective August 1, 1946. • Rev. Gen. RO 18 and Supplement 1; both effective July 1, 1946. 88 • Nineteenth Quarterly Report • VIII • ENFORCEMENT Suspension of price and rent controls in the June 30-July 25 period presented many pressing problems to the Office. Authority of the Administrator to institute and continue enforcement actions arising out of violations committed on or before June 30, 1946, was questioned. It was found, however, that such authority was provided by Congress in section 1 (b) of the Emergency Price Control Act, which declared that the act and regulations issued thereunder were to be treated as still remaining in force for the purpose of sustaining any suit, action, or prosecution respecting any right, liability, or offense committed prior to the termination date. A second source of authority was provided by Executive Order 9745, issued by the President on July 1, 1946. This order authorized the Administrator to continue to exercise and perform all those functions and powers vested in him by the provisions of the act which did not terminate with the termination of the act, and all functions and powers delegated to him pursuant to the Second War Powers Act. Enforcement activity during the hiatus period was largely devoted to clearing away the backlog of pending cases. Cases pending on court calendars were reviewed and steps taken to bring them to speedy disposition. Investigations under way were completed and a number of suits were filed, although this figure was substantially lower than during normal periods. The filing of these suits and the vigorous prosecution of cases already pending brought home to potential violators the Government’s determination that there would be no washing out of past violations when controls were removed. The outstanding enforcement problem created by the break in controls was the widespread attempt of landlords to evict tenants under State and local eviction procedures on grounds that would not have entitled them to eviction certificates under the Emergency Price Control Act. A large number of landlords, moreover, tried to evict tenants from their premises where the eviction proceedings had not been completed by July 25, 1946. Immediate action on the part of the Office was required to keep these tenants in possession. As a whole, the Federal and State courts and authorities provided splendid cooperation even in the interim in preserving the status quo pending final congressional action. Where landlords*had been able during the interim period to obtain eviction orders which were not executed Enforcement • 89 until after the resumption of controls, the Office was successful in enjoining their execution and protecting the threatened tenants. ENFORCEMENT ACTIVITY Enforcement activity, slowed down at the beginning of the quarter by the suspension of price controls, moved into full speed again on July 26 and continued at a high level throughout the quarter. The launching at the end of August of a program of unprecedented activity to enforce observance of the reinstated controls on meat overshadowed the steady work being carried on under other programs. The staff of investigators policing sales of meat at all levels of industry was approximately doubled, and investigation at retail, wholesale, and producing levels was integrated into a well-knit procedure to stop violations at their source. In other fields, a streamlined procedure for investigating preretail violations in consumer durable goods was introduced, with investigators working out of regional offices. The effect of intensified enforcement activity on lumber and building materials prices, initiated earlier in the year,1 was fully felt during this quarter; and plans were matured, ready to begin operations in October, for carrying out the Housing Expediter’s delegation of responsibility2 to OPA to enforce the price and veterans’ preference provisions of the Veterans’ Emergency Housing Program. Investigations directed toward securing criminal prosecution of black-market operators in critical commodities were increased during the quarter, with especial emphasis upon lumber and automobiles. More than ever before, substantial sums of purchase money essential to the development of evidence in these commodities were used. A large number of cases was filed with United States attorneys in all parts of the country. Among the more spectacular individual cases during the quarter were the breaking up of a hundred-million-dollar-a-year automobile black market in Leesville, S. C., by special agents of the Office, and the successful prosecution of conspiracy charges against a used-car black-market ring in Detroit, and against a group of individuals in Iowa who had operated a large black market in carloads of corn. In addition mass suits were filed in various parts of the country against lumber mills and lumber dealers who had been heavily engaged in extensive overceiling sales. Lumber and Building Materials Lumber enforcement activity was substantially accelerated during the quarter. Investigative activity continued through the interim 1 See Eighteenth Quarterly Report, pp. 76-77. 2 EPO 2, issued August 27, 1946. 90 • Nineteenth Quarterly Report period and a substantial number of sanctions was instituted, highlighted by a mass filing in the Dallas region, immediately after passage of the 1946 Price Control Extension Act. Greater emphasis was placed upon criminal prosecution, and a substantial number of cases was developed for referral to United States district attorneys. The pur-chase-of-evidence technique, used extensively during the quarter, contributed heavily to the efficacy of the campaign. The many indications that lumber prices, particularly in the South, had increased substantially during the interim period did not lessen the enforcement problem after July 25 in this field. Various evasive devices were developed during the period in what appeared to be an attempt to legalize such transactions under future extended control. In the field of other building materials, investigations under area pricing orders disclosed spotty compliance conditions. The purchase-of-evidence technique was also used to a greater extent than ever before in this commodity area and resulted in a number of criminal referrals. Closer working relationships with the other Government agencies interested in the housing program were established during the quarter. Automobiles The pressures on price ceilings for both new and used cars continued throughout the quarter. The number of new cars which found their way to used-car lots provided a source for black-market activity that had to be constantly watched. Some of these cars were traced back to dealers who had intentionally sold to persons known to be representatives of the used-car lots. Some of these new cars, however, were obtained by individuals from dealers and, unknown to the dealers, resold to used-car lots. In tracking down these cases, the Office received splendid cooperation from new-car manufacturers in tracing the serial numbers of all new cars found on used-car lots. A deterrent effect on the black market was achieved through the successful prosecution of conspiracy charges against 31 used-car dealers in Detroit. Convictions were obtained against 29 defendants, with sentences ranging up to 2 years and total fines amounting to more than $300,000. Shifting of enforcement manpower from other programs to automobiles enabled the Office to spread its activity in this field. Sanctions against violators increased during the quarter and a large number of arrests for black-market activity was made in Los Angeles and in Leesville, S. C. Meat and Other Foods During the first 2 months of the quarter, when meat prices were not under control, enforcement was concentrated on the elimination of Enforcement • 91 unlicensed slaughterers and on the completion of cases covering violations which occurred prior to July 1,1946. The decision of the Price Decontrol Board to reinstitute meat ceilings set off an energetic enforcement campaign to the end that meat would move through legitimate channels at ceiling prices. Activities were directed primarily at the preretail level. To implement the campaign the meat enforcement staff was substantially augmented, and investigators who had formerly worked on enforcement of retail-food programs were transferred to this task. At the close of the quarter approximately 1,100 meat investigators were employed, as against approximately 700 as of June 30,1946. The national retail-food enforcement program, in operation since November 1945, had been continued in full force for 1 month after recontrol of food items other than meat and dairy products. The program was somewhat modified, however, in that injunction was the sanction sought rather than the more severe sanctions of license suspensions, criminal contempt proceedings, and criminal actions. The more severe sanctions were not used because of the prospect of constant repricing during the period made necessary by the dictates of the new act. In other food programs, a substantial number of investigations was instituted as to compliance with ceiling prices for rice since the 1946 rice crop had begun to move in the southern States. The regulations covering dry beans and peas were tightened to facilitate enforcement, and enforcement programs were put into effect in the growing areas. In enforcement of sugar-rationing orders, the Office program of surveillance over wholesalers was continued, and a large number of industrial user investigations was instituted. Sanctions for all types of violations continued to be imposed at the rate of approximately 1,000 a month. Overdrafts in ration banking accounts had for some time constituted a serious diversion of sugar from legitimate channels. Enforcement efforts during the quarter were directed toward discouraging this practice by taking prompt enforcement action for all substantial violations of this type. As a result the number of overdrafts decreased considerably. Other Price Control Programs Durable goods.—Investigations in this field were stepped up during the quarter as more heavy appliances and radios were reaching dealers’ shelves. The firms investigated were those with a previous record of violations, either violations uncovered by special investigations or those uncovered by the price control boards. 92 • Nineteenth Quarterly Report Violations in the durable goods field at the manufacturing level were held to a minimum through highly selective investigations. Selection for investigation was based on the effect of the particular business on the nation’s economy and the extent to which their production was in short supply. Apparel and textiles.—The major sanction retail program instituted during the second quarter of 1946 was stopped completely during the interim period, but after July 25 the tempo of the program increased steadily. Activity at the manufacturing level also continued. The textile piece-goods black market was under constant investigation, both by regular commodity investigators and special agents. A number of significant criminal cases were developed. Veterans’ Housing and Rent Control Responsibility for enforcing certain features of the veterans’ emergency housing program was delegated to the Office by Wilson W. Wyatt, Housing Expediter, in August. Compliance features of the enforcement program were to be handled by the area rent offices and those cases which could not be settled through compliance action were to be referred for enforcement action. In addition, investigations and prosecutions were to be conducted in connection with violations which were evasive in character, such as bonus cases and side payments. Under a new procedure in rent enforcement, all evasive practice cases were to be referred for enforcement rather than compliance action as formerly. A number of landlords were arrested during the quarter who had requested and accepted side payments when leasing apartments or houses. A new survey program, undertaken to supplement actions taken by area rent offices, was launched during the quarter to uncover violations not revealed by complaints filed in the area offices. LITIGATION Litigation carried on by the Office in the period under review continued with the same high degree of success that characterized preceding quarters. In only one case was a decision rendered contrary to the Administrator. The serious situation brought about by the suspension of rent controls was somewhat alleviated by the cooperation of the courts acting on eviction proceedings. In those cases where eviction was sought after July 25, the courts generally did not hesitate to give appropriate relief. In one case where the district court denied the Administrator’s motion for a preliminary injunction to restrain the landlord from excluding a tenant from the premises, and eviction was com- Enforcement 93 pleted, a judge of the circuit court of appeals granted a mandatory restraining order, pending the outcome of appeal, directing the landlord to make the premises available to the tenant in the interim? In the field of meat control, the Third Circuit Court of Appeals, in Porter v. Villari? agreed with the Office contention that a cooperative formed by retail butchers upon the instigation of a wholesale slaughterer constituted an evasion of the act and regulation in that it merely permitted the retail butchers to pay more than the ceiling price for meat. In Bowles v. Federated Meat Corporation? the Second Circuit Court of Appeals upheld an interlocutory decree restraining the operation of a similar device to circumvent price control. The court held that the purchase of “stock” and payment of “assessments” by retailers to a corporate slaughterer constituted a tie-in agreement in violation of the regulation. Retroactive pricing orders were successfully sustained in three circuit courts of appeal? In Martini v. Porter, the defendant, a seller of whiskey, never applied to the OPA for an order prescribing a method of determining the maximum price, as was required by the General Maximum Price Regulation where no sales of the same or similar commodities had been made in the base period. Instead, defendant sold at his own prices, which were higher than the prices subsequently established for the whiskey in question by a retroactive order. In the Kramer case, defendants were furniture dealers whose products were governed by the fourth pricing method of Maximum Price Regulation 188 for establishment of a price. After sales had been made for a year at prices not authorized by the regulation, the Administrator issued a restraining order establishing prices below those charged by defendants. In the Senderowitz case, defendants, manufacturers of men’s and boys’ shorts which were not sold during the base period, were required by the provisions of the General Maximum Price Regulation to obtain specific authorization to compute ceiling prices according to a prescribed formula, and then to report the prices so computed to OPA. Defendants, however, sold large quantities of merchandise without reporting their prices. After institution of the action against them and subsequent submission of a report, a retroactive pricing order was issued. In each of these cases, the court pointed out the defendants could have protected themselves from retroactive orders by complying with the regulation, but instead, proceeded in complete disregard of the * Porter v. Merhar (C. C. A. 6th) August 6, 1946, issued by Judge Miller. See also, Porter v. Ayers, decided August 2, 1946. * (C. C. A. 3d) July 8, 1946. • (C. C. A. 2d) September 12,1946. • Martini v. Porter (C. C. A. 9th) July 18, 1946, Porter v. Kramer et al. (C. C. A. 8th) July 19. 1946: Porter v. Senderowite (C. C. A. SHA Jnlv 22. 1946. 94 • Nineteenth Quarterly Report duties imposed on them by law. Nor could these defendants complain if they found themselves subject to an action for damages “caused by their admitted failure to obey the Regulation and to ascertain by the means provided in the regulation the * * * prices applicable to their goods before selling them” (Porter n. Kramer, supra). Contrary to the ruling in four other circuit courts7 of appeals that had passed on the question, the Sixth Circuit Court, in Porter v. Mohawk Wrecking de Lumber Co.? ruled that the Price Control Act does not permit the Administrator to delegate the function of signing and issuing subpoenas. The theory advanced by the court was that Cudahy Packing Co. v. Holland (315 U. S. 357) establishes a general principle of administrative law that the subpoena may be delegated only by express legislative authority. Since the Office held that authority in the act was expressly delegated within the principles enunciated by the Cudahy case, and in view of the conflict in circuits, application for certiorari was made to the Supreme Court. In Fontes n. Porter? the Circuit Court of Appeals for the Ninth Circuit held that unless the vendor specifically complies with the requirements of a regulation prescribing a “written guaranty” on the sale of machine tools, he can charge no more than the “as is” price established for the tools. And in Porter v. Rushing?9 the Eighth Circuit reversed a district court which had dismissed the Administrator’s treble damage action of monthly rental overcharges of 1 dollar each on the ground that the maxim de minimis non curat lex and the fair and honest administration of the law required the dismissal. STATISTICAL SUMMARY Approximately 30,500 investigations were completed and more than 24,500 violations established during the quarter. Sanctions of various types were employed in the large majority of violations disposed of. Approximately 8,000 treble damage suits, injunction suits, license-suspension suits, Federal and local prosecutions, and contempt proceedings were instituted. Almost 3,300 suspension order proceedings were instituted. Monetary settlements were made in 3,200 cases. Almost 2,700 cases were closed with a warning letter or informal adjustment, and slightly in excess of 2,200 cases were closed with the issuance of a license warning notice. ’ Raley v. Porter, 156 F. 2d 561 (App. D. C.) ; Pinhus v. Porter, 155 F. 2d 90 (C. C. A. 7th) ; Porter v. Gantner-Mattem, 64 Fed. Supp. 383 (C. C. A. 9th) ; Porter v. Murray, 156 F. 2d 781 (C. C. A. 1st). • (C. C. A. 6th) August 12, 1946. , • (C. C. A. 9th) July 29,1946. : 10 (C. C. A. 8th) September 9, 1946. ■ ' ’S> - ■■ * Enforcement • 95 The Office completed more than 2,400 administrative proceedings, more than 4,700 civil court proceedings of all types, and approximately 650 Federal and local criminal prosecutions. Favorable decisions were obtained in 91.6 percent of the administrative proceedings completed, 94.3 percent of the civil proceedings, and 93.7 percent of the criminal prosecutions. Approximately 2,800 civil proceedings were withdrawn, mainly in fields where controls were lifted and the relief sought—injunction to restrain further violations, for example—was no longer available under a regulation which had been revoked. Settlements, judgments, and fines during the quarter amounted to $4,488,988. Statistical Summary of Enforcement Activity July-September 1946 Type of action Number Investigations and violations: Investigations completed 30,507 Violations found with and without investigation 2^667 Administrative enforcement: Waming letters and informal adjustments 2,680 License warning notices 2,337 Suspension order proceedings instituted 3^291 Determination proceedings instituted 1 Monetary settlements: Administrator’s consumer damage claim : 2,425 Administrator’s own damage claim '776 Litigation instituted: Administrator’s consumer damage suit 2,342 Administrator’s own damage suit.. 707 Injunction suit ~ 4,314 License suspension suit 49 Federal criminal prosecution 1 354 Local criminal prosecution L 257 Contempt proceedings1 - 32 Proceedings completed: ” Administrative proceedings closed . 2,774 Proceedings completed 2,429 Order issued (won) ' 2,226 Order denied (lost).. 203 Percent won 91.6 Proceedings withdrawn 345 Court litigation closed: Civil litigation2 .. .. — 7,833 Proceedings completed 5,024 Won “ . - 4,736 Lost.. - 288 Percent won 94.3 Withdrawn - — 2,809 Criminal litigation3 763 Proceedings completed 637 Won - - - — - —- 584 Lost - -- 53 Percent won - - - - - 91.7 Withdrawn - 126 RAt.tlAm^ntsT judgments, and Amar ------- - - ------ $4,488,988 i Number of cases. 2 Number of cases, except for number of defendants in contempt proceedings. 3 Number of defendants. U. S. GOVERNMENT PRINTING OFFICEi l»47