[Used Steel Barrels or Drums]
[From the U.S. Government Publishing Office, www.gpo.gov]
PRICE SCHEDULE No. 43
Used Steel Barrels or Drums
OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION WASHINGTON, D. C.
Table of Contents
Page
Price Schedule No. 43, Used Steel Barrels or Drums_---------------- 1
1. Maximum prices for used steel barrels or drums------------- 1
2. Less than maximum prices. -------------—-------------------- 1
3. Evasion--------------------------------------------------- 1
4. Permission to carry out contracts entered into prior to December
1, 1941____________________________________________________ 1
5. Records and reports------------------------------------------- 2
6. Enforcement-------------------------------------------------- 2
7. Modification of the Schedule------------------------------- 3
8. Definitions:
(a) Person-------.------------------------------------ 3
(b) Reconditioned steel barrel or drum---------------- 3
(c) Raw used steel barrel or drum--------------------- 3
(d) User---------------------------------------------- 3
9. Effective date of the Schedule----.------------------------ 3
10. Appendix A: Maximum prices for used steel barrels or drums- 4
Form No. 143:1, Report of commitments for the sale of used drums. 6
Press Release: November 25, 1941, Issuance of Price Schedule No. 43 8
Supplement: Establishment of the Office of Price Administration---- 10
Note.—Price Schedules have also been issued for other commodities and materials and may be had upon request to the Office of Price Administration, W ashington, D. C. A list of Price Schedules issued is also available.
PRICE SCHEDULE No. 43 1
Used Steel Barrels or Drums
Used steel barrels or drums play a vital role in the distribution of petroleum and its derivatives, chemicals, and foods. To prevent excessive and unwarranted price increases in the petroleum, chemical, and food industries the establishment of ceiling prices for used steel barrels is absolutely essential. The present spiraling of such prices, unless controlled effectively, is certain to have an adverse effect on the national defense and the public welfare completely out of proportion to the intrinsic value of the used barrels or drums.
It has been determined, consequently, after complete investigation and after numerous conferences with representatives of the industry, to establish maximum prices for used steel barrels or drums as a necessary protection of the public welfare and the national defense.
Accordingly, under the authority vested in me by Executive Order 8734,2 it is hereby directed that: »
1. Maximum prices for used steel barrels or drums.—On and after December 1, 1941, regardless of the terms of any contract of sale or purchase, or other commitment, except as provided in Section 4 hereof, no person shall sell, offer to sell, deliver or transfer, used steel barrels or drums, and no person shall buy, offer to buy, or accept delivery of used steel barrels or drums, at prices higher than the maximum prices set forth in Appendix A hereof, incorporated herein as Section 10.
2. Less than maximum prices.—Lower prices than those set forth in Appendix A may be charged, demanded, paid, or offered.
3. Evasion.—The price limitations set forth in this Schedule shall not be evaded whether by direct or indirect methods in connection with a purchase, sale, delivery, or transfer of a used steel barrel or drum, alone or in conjunction with any other material, or by way of any commission, service, transportation, or other charge, or discount, premium, or other privilege, or by tying-agreement or other trade understanding, or otherwise.
4. Permission to carry out contracts entered into prior to December 7, 19^1.—Any person who, prior to December 1, 1941, has entered
1 6 F. R. 5961, No. 228, November 25, 1941. Published as title 32, ch. XI, part 1306, secs. 1306.201 to 1306.210, inclusive.
2 See Supplement, p. 10.
431476°—41
1
into a contract of sale or other firm commitment calling for the delivery or transfer after that date, of one or more used steel barrels or drums, at prices higher than the maximum prices established by this Schedule, may make application to the Office of Price Administration on Form 143: l,3 provided for that purpose, for permission to carry out such contract or commitment at the contract price. Such permission will be granted only when necessary to protect the applicant against loss in the disposition of inventory (a) acquired prior to December 1, 1941, at prices higher than the established maximum prices and held by the applicant on that date, and (&) acquired by the applicant pursuant to permission granted by the Office of Price Administration to such applicant and his vendor under this Section. Such application shall be filed with the Office of Price Administration on or before December 15, 1941. No permission will be granted to make delivery of used steel barrels or drums on or after January 15,1942, at prices higher than the established maximum prices.
5. Records and reports.—Every person making purchases or sales of used steel barrels or drums after December 1, 1941, shall keep for inspection by the Office of Price Administration for a period of not less than one year, complete and accurate records of {a) each such purchase or sale, showing the date thereof, the name and address of the buyer or the seller, the price paid or received, and the quantity of each kind or grade purchased or sold, and (&) the quantity of used steel barrels or drums (1) on hand, and (2) on order, as of the close of each calendar month.
Persons affected by this Schedule shall submit such reports to the Office of Price Administration as it may, from time to time, require.
6. Enforcement.—In the event of refusal or failure to abide by the price limitations, record requirements, or other provisions of this Schedule, or in the event of any evasion or attempt to evade the price limitations or other provisions of this Schedule, the Office of Price Administration will make every effort to assure (a) that the Congress and the public are fully informed thereof; (&) that the powers of Government, both State and Federal, are fully exerted in order to protect the public interest and the interests of those persons who comply with this Schedule; (c) that full advantage will be taken of the cooperation of the various political subdivisions of State, county, and local governments by calling to the attention of the proper authorities, failures to comply with this Schedule, and {d} that the procurement services of the Government are requested to refrain from selling to or purchasing from those persons who fail to comply with this Schedule. Persons who have evidence of the
3 See p. 6.
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 used steel barrels or drums, 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 : Provided, That no application under this section will be considered unless filed by persons complying with this Schedule.
8. Definitions.—When used in this Schedule, the term :
(a) “person” means an individual, partnership, association, corporation, or other business entity ;
(b) “reconditioned steel barrel or drum” means a used steel barrel or drum which has been washed and painted, de-dented, chained, welded, or subjected to any other reconditioning process by which a raw barrel or drum is made fit for reuse;
(c) “raw used steel barrel or drum” means a barrel or drum which has been emptied but which has not been subjected to any reconditioning process;
{d} “user” means the person who uses the barrel or drum as a container for the shipment or storage of his products.
9. Effective date of the schedule.—This Schedule shall become effective December 1, 1941.
Issued this 24th day of November 1941.
Leon Henderson,
A dvainis trator.
Section 10.
Appendix A
MAXIMUM PRICES FOR USED STEEL BARRELS OR DRUMS
(a) Maximum Price for Reconditioned Steel Barrels or Drums, Size 50 to 55 Gallons, 18 Gage
The maximum price for reconditioned steel barrels or drums, size 50 to 55 gallons, 18 gage, except reconditioned barrels or drums which have been lacquer-relined and baked, shall be $2.25 per barrel or drum, delivered to a purchaser situated within a radius of 50 miles from the plant where the barrel or drum was reconditioned: Provided, That for each 75 miles or fraction thereof, in excess of 50 miles from the plant where the barrel or drum was reconditioned, all actual charges for transportation or the sum of 10 cents per barrel or drum, whichever is lower, may be added: Provided further, That where a barrel or drum is reconditioned and delivered in the States of California, Washington, and Oregon the sum of 50 cents may be added to the above maximum charges.
(b) Maximum Price for Lacquer-Relined and Baked Drums, Size 50 to 55 Gallons, 18 Gage
• The maximum price for reconditioned steel barrels or drums, size 50 to 55 gallons, 18 gage, which have been lacquer-relined and baked, shall be the maximum prices set forth in paragraph (a) above, to which may be added the sum of 25 cents per barrel or drum.
(c) Maximum Price for Raw Used Drums, Size 50 to 55 Gallons 18 Gage
Except as provided in paragraph (d) below, the maximum price for raw used steel barrels or drums, size 50 to 55 gallons, 18 gage, shall be $1.60 per barrel or drum delivered to the plant of the user or reconditioner: Provided, That in the States of California, Washington, and Oregon, the sum of forty cents per barrel or drum may be added.
(d) Maximum Price for Raw Used Drums in Case of Direct Purchases by User
The maximum prices for raw used steel barrels or drums, size 50 to 55 gallons, 18 gage, purchased by a user directly from the person who empties the barrels or drums, shall be $1.25 per barrel or drum f. o. b. point where barrel or drum is emptied: Provided, That in the States of California, Washington, and Oregon, the sum of 40 cents per barrel or drum may be added.
(e) Maximum Price for Other Reconditioned Drums
The maximum delivered price for reconditioned steel barrels or drums, other than those covered by paragraphs (a) and (b) above, shall be 80 percent of the delivered price, excluding extras, quoted by the Rheem Manufacturing Co., a corporation, or by the Wheeling Corrugating Co., a corporation, when delivered in carload lots, of new, black, hot-rolled steel barrels or drums of the same type and size: Provided, That for each 75 miles or fraction thereof in excess of 50 miles from the plant where the barrel or drum was reconditioned, all actual charges for transportation or the sum of ten cents per barrel or drum, whichever is lower, may be added.
(f) Maximum Price for Other Raw Used Drums
The maximum delivered price for raw used steel barrels or drums, other than those covered by paragraphs (c) and (d) above, delivered to the plant of the user or reconditioner, shall be 65 cents less than the maximum price provided in paragraph (e) above for a reconditioned barrel or drum of the same size and type.
Office for Emergency Management
OFFICE OF PRICE ADMINISTRATION
[This Report must be filed on or before December 15, 1941]
USED DRUMS
Form No. 143:1
Date submitted:------
(Name of reporting company)
By_______________________ Title____________________________
(Signature) (Office held)
(Address)
The above-named company, in compliance with Section 4 of Price Schedule No. 43 (effective December 1, 1941), herewith reports all commitments for the sale of used drums, remaining open as of the close of business December 1, 1941, which are to be completed at contract prices higher than the maximum prices established by the amendments to Price Schedule No. 43. There was on hand in the above-named company’s plant or warehouse on December 1, 1941, sufficient used drums to carry out all of these commitments.
A. INVENTORY ON HAND, DEC. 1, 1941
(a) Type (b) Cost (c) Length of time held
B. TURN-OVER
(a) Purchased (b) Sold (o) Value of sales
1. January-September 1941 21 October 1941
C. CONTRACTS OUTSTANDING, DEO. 1, 1941
(a) (b) (0 (d) (e) (f)
Name and address of purchaser Date of ' contract Type of drum Quantity Price Date of delivery or freight shipment
Subscribed and sworn to this________day of____________1941.
Notary
Press Release
N ov ember 25, 19^1—PM 1636
Issuance of Price Schedule No. 43
Prices of second-hand steel drums, which have risen to exorbitant levels since the beginning of 1941, will be brought down sharply in a schedule of ceiling prices announced today by Leon Henderson, Administrator, Office of Price Administration.
As compared with a price of $2.72 each for new containers, reconditioned standard steel drums of 55-gallon capacity have been selling in Eastern markets at from $3.50 to $4.50. The OP A schedule, effective December 1, 1941, sets a maxium delivered price of $2.25 each for used containers of this type.
“Price action of used steel drums in recent months has added to our experience one more excellent example of how an inflationary spiral develops,” Mr. Henderson stated. “Second-hand drums are a very important item in many industries. They afford to manufacturers of such materials as chemicals, petroleum products, paints, varnishes, lard and shortening a cheaper form of container and, hence, are a real factor in the prices of numerous finished products.
“Supplies of new steel drums now have become seriously curtailed as a result of the unusual requirements of our defense program. This shortage in turn has created heavy demand for used drums and prices have gotten out of hand. No. 1 reconditioned drums that sold around $1.75 each in Eastern markets 10 months ago have gone up to $3.50 and $4.50, or from 30 to 60 percent above the current prices of new drums. As usual, speculation and hoarding have accompanied this rise, exerting pressure for still higher prices.
“In the case of certain cheaper grades of petroleum products, the cost of the container has become greater than the value of the product it contains.”
The OPA schedule fixes a maximum delivered price for reconditioned steel barrels or drums, size 50 to 55 gallons, 18-gage, of $2.25 each, within a radius of 50 miles from the reconditioning, plant. For each 75 miles or fraction thereof in excess of this 50-mile radius, there may be added all actual transportation charges or 10 cents a barrel, whichever is less. In the States of California, Washington,
and Oregon, according to the schedule, a further 50 cents per unit may be added to the foregoing maximum charges. This recognizes a premium that has prevailed traditionally on the West Coast. These ceiling prices may be increased by another 25 cents per unit in cases where the reconditioned drums have been lacquer-relined and baked.
A top price of $1.60 per unit delivered is set for 18-gage 50- to 55-gallon drums in a “raw,” or uncleaned or unreconditioned, state. In the three West Coast States this maximum is raised to $2 each.
Maximum price that may be charged when a user buys a secondhand standard 50- to 55-gallon drum directly from the person who empties the drum is set at $1.25 f. o. b. the “emptying point.” This price may be $1.65 in the West Coast States.
While more than 90 percent of used drums are of 55-gallon capacity, the entire range goes from 15 to 110 gallons, light or heavy gage steel. To cover these other sizes, the schedule stipulates that maximum delivered prices shall not exceed 80 percent of the base price of new, black, hot-rolled steel barrels or drums of the same type and size, when delivered in carload lots. The same transportation premium as applies to 50- to 55-gallon containers is provided for all other sizes.
“Raw” drums of sizes other than 50- to 55-gallon, 18-gage, shall not sell for more than 65 cents less than the maximum prices set for reconditioned drums of the same size and type, according to the schedule.
Every person buying or selling used steel barrels or drums is required to keep detailed records for inspection by OPA and to submit such reports as OPA may require from time to time.
Supplement
Establishment of the Office of Price Administration
On April 11, 1941, the President issued Executive Order No. 8734,1 establishing the Office of Price Administration and Civilian Supply, which combined the Price, Consumer, and, in part, Agricultural Divisions of the National Defense Advisory Commission. On April 15, 1941, Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, issued an order ratifying action taken by the Price Stabilization Division prior to the Executive Order of April 11, 1941. This order provided as follows :
1. All price schedules, instructions, announcements, forms, and notices heretofore issued, promulgated, or adopted, and all committees formed by the Advisers on Price Stabilization and Consumer Protection, members of the Advisory Commission to the Council of National Defense, or by the Price Stabilization and Consumer Divisions of the Advisory Commission to the Council of National Defense are hereby ratified, adopted, and continued in effect, until modified, terminated, or superseded, as price schedules, instructions, announcements, forms, notices, and committees, of the Office of Price Administration and Civilian Supply and the Administrator thereof.
2. This ruling is issued under, and in execution of the purposes of, Executive Order No. 8734, issued by the President on April 11, 1941.
Issued this 15th day of April 1941.2
Leon Henderson,
Administrator.
On August 28,1941, the President issued Executive Order No. 8875 3 which transferred the Division of Civilian Supply from the Office of Price Administration and Civilian Supply to the Office of Production Management. The title of the Office of Price Administration and Civilian Supply was changed to the Office of Price Administration. On August 30, 1941, Leon Henderson issued a press release stating that all action taken by the Office of Price Administration and Civilian Supply remained in full force and effect regardless of the change of name to Office of Price Administration. The text of the release is as follows:
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
1 6 F. R. 1917 No. 73, April 15, 1941.
a 6 F. R. 1965 No. 74, April 16, 1941.
a 6 F. R. 4483 No. 170, August 30, 1941.
announced in the President’s Executive Order of Thursday, Leon Henderson, Administrator of the Office of Price Administration, announced today.
The Executive order, Mr. Henderson said, merely provides that the title of the Office of Price Administration and Civilian Supply be changed to Office of Price Administration. It does not affect in any way the powers of the agency in regard to price control. Consequently all price ceiling schedules issued and all other action taken by the agency under the prior name remain fully effective under our new name.4
4 Press Release, August 30, 1941, PM 1059.
0. S. GOVERNMENT PRINTING OFFICE: 1941