[Formaldehyde] [From the U.S. Government Publishing Office, www.gpo.gov] PRICE SCHEDULE No. 21 Formaldehyde OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION WASHINGTON, D. C. Table of Contents Page Price Schedule No. 21, Formaldehyde__________________________________ 1 1. Maximum prices for formaldehyde________________________________ 1 2. Less than maximum prices_______________________________________ 1 3. Evasion_______________________________________________________ 1 4. Records________________________________________________________ 1 5. Affirmations of compliance_____________________________________ 2 6. Enforcement_________________________________________________ 2 7. Modification of the schedule___________________________________ 2 8. Definitions: (a) Person_________________________________________________ 2 (b) Formaldehyde___________________________________________ 2 (c) Producer’s shipping point______________________________ 2 9. Effective date of the schedule_________________________________ 3 10. Appendix A: (a) Maximum prices for formaldehyde shipped from producers’ shipping points_________________________________ 4 (b) Maximum prices for formaldehyde delivered from local stocks__________________________________________________ 4 Form 121:1: Affirmation of compliance for sellers of formaldehyde____ 6 Press Release: August 21, 1941, Issuance of Price Schedule No. 21____ 6 Supplement: Establishment of the Office of Price Administration______ 7 Note.—Price schedules have also been issued for other commodities and materials and may be had upon request to the Office of Price Administration, Washington, D. O. A list of price schedules Issued is also available, in PRICE SCHEDULE NO. 21 Formaldehyde Increasing demands for formaldehyde in the manufacture of synthetic resins for military and civilian needs have created a shortage of supply. Speculators have taken advantage of this situation to raise the resale price of appreciable quantities of formaldehyde to as high as 47 cents per pound, contrasted with the manufacturers’ price of 6 cents per pound for comparable quantities. These speculative prices are threatening to rise to even higher levels. It is necessary to curb such speculation in order to protect consumers, to eliminate the danger of price rises in other industries that use formaldehyde, and to promote stable contractual relationships. Accordingly, under the authority vested in me by Executive Order No. 8734,2 it is hereby directed that: 1. Maacimum prices for formaldehyde.—On and after August 20, 1941, regardless of the terms of any contract of sale or purchase, or other commitment, no person shall sell, offer to sell, deliver, or transfer, formaldehyde in containers of 45 pounds or more, and no person shall buy, offer to buy, or accept delivery of, formaldehyde in containers of 45 pounds or more, at prices higher than the maximum prices set forth in Appendix A, incorporated herein as section 10. 2. Less than maaiimum prices.—Lower prices than those set forth in Appendix A may be charged, demanded, paid, or offered. 3. Evasion.—The price limitations set forth in this schedule shall not be evaded whether by direct or indirect methods in connection with a purchase, sale, delivery, or transfer of formaldehyde, or in connection with a purchase, sale, delivery, or transfer, of any other material, or by way of any commission, service, transportation, or other charge, or discount, premium, or other privilege, or by tying agreement or other trade understanding, or otherwise. 4. Records.—Every person making purchases or sales of formaldehyde in containers of 45 pounds or more shall keep for inspection by the Office of Price Administration for a period of not less than one year complete and accurate records of each such purchase or sale, showing the date thereof, the name and address of the buyer or the seller, the price paid or received, and the specifications and quantity, 1 6 F. R. 4254, No. 163, Aug. 21, 1941. Published as title 32, ch. XI, part 1335, secs. 1335.51 to 1335.60. 2 See Supplement, p. 7. 425396°—41 1 including the size of the containers, of the formaldehyde purchased or sold. 5. Affirmations of compliance.—On or before September 10, 1941, and on or before the 10th day of each month thereafter, every person who, during the preceding calendar month, has sold formaldehyde in containers of 45 pounds or more, whether for immediate or future delivery, shall submit to the Office of Price Administration, an affirmation of compliance on Form 121 : l,8 containing a sworn statement that during such month all such sales were made at prices in compliance with this Schedule or with any exception or modification thereof. Copies of Form 121:1 can be procured from the Office of Price Administration, or, provided that no change is made in the style and content of the Form and that it is reproduced on 8- by 10^-inch paper, they may be prepared by persons required to submit affirmations of compliance hereunder. 6. Enforcement.—In the event of refusal or failure to abide by the price limitations, report requirements, or other provisions contained in this schedule, or in the event of any evasion or attempt to evade the price limitations or other provisions contained in this schedule, the Office of Price Administration will make every effort to assure (a) that the Congress and the public are fully informed thereof, and (&) that the powers of the Government are fully exerted in order to protect the public interest and the interests of those persons who comply with this schedule. Persons who have evidence of the offer, receipt, demand, or payment of prices higher than the maximum prices, or of any evasion or effort to evade the provisions hereof, or of speculation, or manipulation of prices of formaldehyde, or of the hoarding or accumulating of unnecessary inventories thereof, are urged to communicate with the Office of Price Administration. 7. Modification of the schedule.—Persons complaining of hardship or inequity in the operation of this schedule may apply to the Office of Price Administration for approval of any modification thereof or exception therefrom. 8. Definitions.—When used in this schedule, the term (a) “Person” means an individual, partnership, association, corporation, or other business entity ; (&) “Formaldehyde” means (1) U. S. P. solution of formaldehyde (37 percent formaldehyde by weight) or (2) any other solution of formaldehyde except lots or quantities sold for commercial use as embalming fluids ; (c) “Producer’s shipping point” means any of the following points: Garfield, N. J., Perth Amboy, N. J., West Haverstraw, N. Y., or Tailant, Okla. • See p. 5. 2 9. Effective date of the schedule.—This schedule shall become effective August 20,1941. Issued this 20th day of August, 1941. Leon Henderson, Administrator. 3 Appendix A Section 10 (a) Maximum Prices for Formaldehyde Shipped From Producers’ Shipping Points Price per pound f. o. b. New York, N. Y., or West Haverstraw, N. Y., or Garfield, N. J., or Perth Amboy, N. J., or Tallant, Okla., freight equalized Less-than- Quantity in pounds and containers: Oarload lota carload lota Tank cars (70,000-72,000 pounds)___________________$0. 0425 _______ Tank truck or wagon________________________________ ________ $0. 0450 Drums (475 pounds)___________________________________ .0540 . 0590 Barrels (450 pounds)__________________________________ .0575 .0625 Kegs (225 pounds)_____________________________________ .0675 .0725 Half barrel (225 pounds)____________________________ .0675 . 0725 Barrels (200 pounds)_______________________________ ________ .0725 Keg (125 pounds)______________________________________ .0700 . 0750 Carboys (100 pounds)__________________________________ .0600 . 0650 Kegs (90 pounds)______________________________________ .0750 . 0800 Kegs (60 pounds)______________________________________ .0800 . 0850 Carboys (45 pounds)___________________________________ .0700 . 0750 Drums (45 pounds)__________________________________ ________ . 0850 Kegs (45 pounds)______________________________________ .0900 . 0950 The maximum price which a purchaser may pay under this schedule for formaldehyde shipped to him from a producer’s shipping point shall not exceed the maximum price set forth above plus freight to destination from New York, N. Y., West Haverstraw, N. Y., Garfield, N. J., Perth Amboy, N. J., or Tallant, Okla., whichever is less. In no case shall the price of any quantity of formaldehyde sold in containers holding 45 pounds or more, but not listed above, exceed the maximum price set forth above for a container holding the next greater quantity. (Ò) Maximum Prices for Formaldehyde Delivered From Local Stocks The maximum price for formaldehyde delivered from local stocks maintained at points other than producers’ shipping points shall not exceed a price ex-seller’s warehouse greater than the maximum prices set forth above plus freight to seller’s warehouse from New York, N. Y., West Haverstraw, N. Y., Garfield, N. J., Perth Amboy, N. J., or Tallant, Okla., whichever is less, plus 1 cent per pound. 4 Form 121:1 - Office for Emergency Management ♦ OFFICE OF PRICE ADMINISTRATION Washington, D. C. Affirmation of Compliance for Sellers of Formaldehyde1 For the purpose of making an affirmation of compliance with Price Schedule No. 21 of the Office of Price Administration, required by section 5 thereof, I have examined the sales records for the month of_______________, 194_, of--------------------------------------------- ------------------------------ (Name of seller) (Address) I • of which concern I am_______________________________________________ During that period the above-named concern has made no sales of formaldehyde at prices in excess of those established by the aforesaid Price Schedule No. 21.’ (Signature) Subscribed and sworn to before me this_______day of__ 194- (Notary public) My commission expires: 1 This affirmation of compliance must be signed by the seller or by a partner or officer of the seller. 2 In the event that any sales have been made at prices in excess of those established by the schedule, the text of the above should be suitably changed and a list should be appended thereto giving with respect to each such sale, the date thereof, the name of the buyer, the quantity, including the size of the containers, of the formaldehyde sold and the reasons for exceeding the maximum price. 5 Press Release August 21, 1914—PM 981 Issuance of Price Schedule No. 21 Action to curb the exploitation of civilian users of formaldehyde by certain dealers who have been charging as much as 47 cents a pound, against manufacturers’ prices of 6 cents a pound for comparable quantities, was taken yesterday by Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, through the imposition of ceiling prices. Maximum prices established by the schedule range from 04.25 to 09.5 cents a pound, f. o. b. the five major shipping points, with freight equalization, and are based upon the highest list prices now being charged by the leading manufacturers. The schedule does not apply to sales of formaldehyde in containers below 45 pounds. A shortage in supplies of formaldehyde, previously recognized by OPACS in its allocation program designed to reduce nonessential uses of the chemical, has resulted from the heavy demands of defense and civilian industry for synthetic resins. Despite the shortage, manufacturers have maintained their prices at reasonable levels as have most jobbers and dealers. Unfortunately, however, there are in the trade some concerns which have successfully profiteered in formaldehyde. While this speculation at present involves only a small percentage of formaldehyde sales, it is spreading rapidly and, if unchecked, will extend over a substantial part of the total supplies. Price stability under such circumstances would be endangered. The schedule allows a premium of one cent a pound over the ceiling prices for dealers and suppliers selling formaldehyde from local stocks. Any charges in excess of this margin, Mr. Henderson stated, will result in prompt action by OPACS directed at the profiteers. Formaldehyde is essential to the manufacture of synthetic resins for plastics and molding compounds, widely used in defense activities and civilian industry. In addition, it is important to agriculture, and to such industrial processes as the manufacture of textiles and wallpaper. In determining the maximum prices, OPACS consulted with the leading producers of the chemical, as well as some of the larger wholesalers. 6 Supplement Establishment of the Office of Price Administration On April 11, 1941, the President issued Executive Order No. 8734,1 establishing the Office of Price Administration and Civilian Supply, which combined the Price, Consumer, and, in part, Agricultural Divisions of the National Defense Advisory Commission. On April 15, 1941, Leon Henderson, Administrator of the Office of Price Adminis-tration and Civilian Supply, issued an order ratifying action taken by the Price Stabilization Division prior to the Executive Order of April 11,1941. This order provided as follows : 1. All price schedules, instructions, announcements, forms, and notices heretofore issued, promulgated, or adopted, and all committees formed, by the advisers on price stabilization and consumer protection, members of the Advisory Commission to the Council of National Defense, or by the Price Stabilization and Consumei' Divisions of the Advisory Commission to the Council of National Defense are hereby ratified, adopted, and continued in effect, until modified, terminated, or superseded, as price schedules, instructions, announcements, forms, notices, and committees, of the Office of Price Administration and Civilian Supply and the Administrator thereof. 2. This ruling is issued under, and in execution of the purposes of, Executive Order No. 8734, issued by the President on April 11, 1941. Issued this 15th day of April 1941.2 Leon Henderson, Administrator'. On August 28,1941, the President issued Executive Order No. 8875,’ which transferred the Division of Civilian Supply from the Office of Price Administration and Civilian Supply to the Office of Production Management. The title of the Office of Price Administration and Civilian Supply was changed to the Office of Price Administration. On August 30, 1941, Leon Henderson issued a press release stating that all action taken by the Office of Price Administration and Civilian Supply remained in full force and effect regardless of the change of name to Office of Price Administration. The text of the release is as follows : All price schedules issued by the Office of Price Administration and Civilian Supply remain in full force and effect regardless of the change of name announced in the President’s Executive Order of Thursday, Leon Henderson, Administrator of the Office of Price Administration, announced today. “The Executive Order,” Mr. Henderson said, “merely provides that the title of the Office of Price Administration and Civilian Supply be changed to Office of Price Administration. It does not affect in any way the Towers of the agency in regard to price control. Consequently all price-ceiling schedules issued and all other action taken by this agency under the prior name remain fully effective under our new name.” * 1 6 F. R. 1917, No. 73, Apr. 15, 1941. 8 6 F. R. 4483, No. 170, Aug. 30, 1941. 8 6 F. R. 1965, No. 74, Apr. 16, 1941. < Press Release, Aug. 30, 1941, PM 1059 7 O