[Pure Nickel Scrap, Monel Metal Scrap, Stainless Steel Scrap, Nickel Steel Scrap, and Other Scrap Materials Containg Nickel, Secondary Monel Ingot, Secondary Monel Shot and Secondary Copper-Nickel Shot]
[From the U.S. Government Publishing Office, www.gpo.gov]
PRICE SCHEDULE No. 8
(Amended to September 5- 1941)
Pure Nickel Scrap, Monel Metal Scrap, Stainless Steel Scrap, Nickel Steel Scrap, and Other Scrap Materials Containing Nickel; Secondary Monel Ingot, Secondary Monel Shot, and Secondary Copper-Nickel Shot
OFFICE FOR EMERGENCY MANAGEMENT
OFFICE OF PRICE ADMINISTRATION
WASHINGTON. D. C.
Table of Contents
Page
Price Schedule No. 8, Pure Nickel Scrap, Monel Metal Scrap, Stainless Steel Scrap, Nickel Steel Scrap, and other scrap materials containing Nickel; Secondary Monel Ingot, Secondary Monel Shot, and Secondary Copper-Nickel Shot___________________________________________________ 1
1. Maximum prices on sales of pure nickel scrap, monel metal scrap, stainless steel scrap, nickel steel scrap and other scrap materials containing nickel________________________________________ 1
2. Maximum prices on sales of secondary monel ingot, secondary monel shot and secondary copper-nickel shot____________________ 1
3. Permission to carry out contracts_______________________'__ 2
3a. Imports__________________________________________________________ 2
4. Evasion____________________________________________________ • 3
5. Record-keeping requirements____________________________________ 3
6. Enforcement____________________________________________________ 3
7. Supplemental schedule and reporting requirements_______________ 4
8. Modification of the Price Schedule_____________________________ 4
9. Definitions:
(a) Person_______________________________________________ 4
(&) Maker__________________________________________________ 4
10. Appendix A: Maximum prices for pure nickel scrap, monel metal
scrap, nickel steel scrap, stainless steel scrap, and other scrap materials containing nickel__________________________________ 5
(a) Pure nickel scrap, ferro-nickel chrome iron scrap, ferronickel iron scrap, monel metal scrap and cupro-nickel alloy scrap____________________________________________ 5
(6) Stainless steel scrap and nickel steel scrap_______ 7
11. Appendix B: Maximum prices for secondary monel metal ingot, secondary monel metal shot, and secondary copper-nickel shot. 10
Application Forms:
Application for permission to carry out commitments entered into prior to May 30, 1941, at prices higher than the maximum prices established by Price Schedule No. 8____i____________________ 11
Application for permission to sell imported scrap or secondary materials containing nickel at prices higher than the maximum prices established by Price Schedule No. 8____________.____________ 15
Press Releases:
June 2, 1941, Issuance of Price Schedule No. 8________________________ 18
June 27, 1941, Amendment to Price Schedule No. 8______________________ 20
September 9, 1941, Amendments to Price Schedule No. 8_________________ 21
Excerpt from Circular 0______________________________________________ 24
Supplement: Establishment of the Office of Price Administration______ 26
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. C. A list of Price Schedules issued is also available.
(HI)
422027*--41------------1
PRICE SCHEDULE NO. 8¹
Pure Nickel Scrap, Monel Metal Scrap, Stainless Steel Scrap, Nickel Steel Scrap, and Other Scrap Materials Containing Nickel; Secondary Monel Ingot, Secondary Monel Shot, and Secondary Copper-Nickel Shot
Due to the needs of the defense program, the demand for primary nickel, primary materials containing nickel, and for scrap and secondary materials containing nickel, has increased to the extent that the available supplies of such materials are insufficient to satisfy the total defense and civilian demand. As a consequence, inflationary pressure has been exerted upon the prices of such scrap and secondary materials causing their prices to rise greatly in excess of levels which are in proper relation to the price levels of primary materials. Price instability and dislocations injurious to the national defense and civilian economy have resulted. All this has made it difficult, and in some cases impossible, for the trade to cooperate with the Government in maintaining price stability.
Accordingly, pursuant to and under the authority vested in me by Executive Order No. 8734,² it is hereby directed that:
1. Maximum prices on sales of pure nickel scrap, monel metal scrap, stainless steel scrap, nickel steel scrap, and other scrap materials containing nickel.—On and after June 2,1941, regardless of the terms of any contract of sale or purchase, or other commitment, entered into prior to such date, except as provided in section 3 hereof, no person shall sell, offer to sell, deliver, or transfer at a price, to any other person, pure nickel scrap, ferro-nickel chrome iron scrap, ferro-nickel iron scrap, monel metal scrap, cupro-nickel alloy scrap, stainless steel scrap, or nickel steel scrap, at prices higher than the maximum prices set forth in Appendix A, incorporated herein as section 10.³ No person shall buy, or offer to buy, or accept delivery of, such scrap materials from any person at higher prices. Lower prices than those set forth in Appendix A may, however, be charged, demanded, paid, or offered.
2. Maximum prices on sales of secondary monel ingot, secondary monel shot, and secondary copper-nickel shot.—On and after June 2,
*6 F. R. 2654, No. 106, May 30, 1941. Published as Title 32, Ch. XI, Part 1308, Secs. 1308.1 to 1308.11, inclusive. Amended: 6 F. R. 3154 No. 126, June 28, 1941, Sec. 1308.3a added. Amended: 6 F. R. 4634 No. 175, Sept. 9, 1941.
¹ See Supplement, p. 26.
⁸ See p. 5.
1941, regardless of the terms of any contract of sale or purchase, or other commitment, entered into prior to such date, except as provided in section 3 hereof, no person shall sell, offer to sell, deliver, or transfer at a price, to any other person, secondary monel ingot, secondary monel shot, or secondary copper-nickel shot, at prices higher than the maximum prices set forth in Appendix B, incorporated herein as section 11.* No person shall buy, or offer to buy, or accept delivery of, such secondary materials at higher prices. Lower prices than the prices set forth in Appendix B, may, however, be charged, demanded, paid, or offered.
3. Permission to carry out contracts.—Any person seeking permission to carry out a contract of sale or purchase, or other commitment, entered into prior to May 30,1941, and calling for the delivery, after May 30, 1941, of any of the scrap or secondary materials described in Appendix A or B, at prices higher than the maximum prices set forth in the Appendices, may apply for such permission in writing upon forms⁸ available upon request made to the Office of Price Administration, Washington, D. C. Permission will be granted if necessary to protect such person against loss in the disposition of inventory already acquired at prices higher than the established maximum prices. Permission, therefore, may be obtained only if such scrap or secondary materials, in quantities sufficient to carry out such contract or commitment, were acquired at prices higher than the established maximum prices, and held on May 30, 1941, by (a) the person.seeking such permission, and (5) any other person, for delivery to the person seeking such permission, under a firm commitment entered into prior to May 30,1941.
3a. Im/ports?—Sections 1 and 2 apply to imports of any of the scrap or secondary materials described in Appendix A or B. However, any person who imports such materials may apply for permission to sell such materials at prices higher than the maximum prices set forth in the Appendices. Such permission shall be applied for in writing upon forms⁷ available upon request made to the Office of Price Administration, Washington, D. C. Permission will not be granted unless :
(a) the applicant has purchased the imported materials at prices not exceeding the maximum prices set forth in Appendix A or B ; and
{b} the prices at which the applicant seeks to sell the imported materials are approved by the Office of Price Administration.
* See p. 10.
• See Form 108 : 2, p. 11.
• Section added : 6 F. R. 3154 No. 126, June 28, 1941. See press release, p. 20.
T See Form 108 :5, p. 15.
The Office of Price Administration will not approve the sale of imported scrap materials containing nickel at prices which exceed the delivered cost of the materials to the applicant plus the premiums allowed a converter on sales of the particular kind or grade of scrap material involved, as set forth in Appendix A; and
(c) the prospective consumer of the imported materials is disclosed.
4. 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, or transfer at a price, of the scrap or secondary materials described in Appendix A or B, or in connection with a purchase, sale, or transfer at a price of any other materials, or by way of any service^ transportation, or other charge, or discount, premium, or other privilege, or by tying-agreement or other trade understanding, or otherwise.
5. Record-keeping requirements.—Every person purchasing or selling the scrap or secondary materials described in Appendices A or B, shall, until such time as further information is deemed necessary or appropriate hereunder, keep for inspection by the Office of Price Administration, and preserve for a period not less than one year, complete and accurate records of :
(a) every purchase and sale of such scrap or secondary materials, showing the name and address of the person from or to whom each such purchase or sale was made, the date thereof, the price paid or received, and the quantity, in pounds or tons, of each kind or grade purchased or sold ; and
(Z>) the quantity, in pounds or tons, of such scrap materials and, separately, the quantity, in pounds or tons, of such secondary materials (i) on hand, and (ii) on order, as of the close of each month.
6. Enforcement.—In the event of refusal or failure to abide by the price limitations, record requirements, and 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, this Office will make every effort to assure {a) that the Congress and the public are fully informed of any failure to abide by the provisions of this Schedule; and (b) that the powers of the Government are fully exerted in order to protect the public interest and the interest of those persons who conform with this Schedule in the maintenance of the ceiling prices herein set forth. Persons who have evidence of the demand or receipt of prices above the limitations set forth, or of any evasion of or effort to evade such requirements, or of
speculation, or manipulation of prices of the scrap and secondary materials, for which maximum prices are herein established, or of the hoarding or accumulating of unnecessary inventories thereof, are urged to communicate with the Office of Price Administration.
7. Supplemental schedule and reporting requirements.—In order to insure compliance with this Schedule supplements further stating its scope and, if necessary, requiring reports to the Government, will be issued from time to time when found appropriate.
8. Modification of the Price 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.
9; Definitions.³—When used in this Schedule, the term—
(a) “Person” includes an individual, partnership, association, corporation or other business entity.
(¿>) “Maker”⁸ of the scrap materials set forth in Appendix A, paragraph (a), of this Schedule means the person who first sells, offers for sale, or delivers such scrap materials such as (i) any manufacturer or fabricator, who, as an incident to his manufacturing process, fabricating or other industrial uses, produces such scrap materials, or (ii) any person who, in his business or as an incident to his business, demolishes or dismantles structures, machinery, vehicles or equipment and removes such scrap materials therefrom for the purpose of sale.
Issued this 29th day of May 1941.¹⁰
Leon Henderson,
Administrator.
⁸ As amended: 6 F, E. 4634 No. 175, Sept. 9, 1941. See press release, p. 21.
⁹ “Maker” not a “converter.” For definition of “converter” see Appendix A, paragraph (a), p. 5.
¹⁰ For dates of amendments, see footnote 1, p. 1.
Section 10
Appendix Af
Maximum Prices for Pure Nickel Scrap, Monel Metal Scrap, Nickel Steel Scrap, Stainless Steel Scrap, and Other Scrap Materials Containing Nickel
INTRODUCTORY
Maximum prices herein established are for the principal kinds or grades of the scrap materials. All other kinds or grades which are not specified should be sold at their normal differentials from such principal kinds or grades. Moreover, the maximum prices are established for scrap which meets generally accepted maximum standards in the trade—as, for instance, the Standard Classification for Old Metals of the National Association of Waste Material Dealers, Inc., contained in its Circular 0,J effective as of June 1,1940. Scrap which fails to meet such standards should be sold at normal differentials below the established maximum prices.
(a)
Pure Nickel Scrap, Ferro-Nickel Chrome Iron Scrap, Ferro-Nickel Iron Scrap, Monel Metal Scrap, and Cupro-Nickel Alloy Scrap
The maximum prices established for the kinds and grades of scrap materials set forth in paragraph (a) of this Appendix apply on sales of scrap unsuitable and unprepared for industrial consumption. A converter of such scrap materials, as hereinafter defined, may receive, in addition to the maximum prices set forth below, a stated maximum premium for scrap which he has converted. A “converter” of such scrap materials is defined for the purposes of this Price Schedule as any person, other than a maker of such scrap materials, who:
(1) sells scrap directly to a consumer thereof; and,
(2) by chemical test or assay, determines the metal constituents of the scrap; and,
t As amended: 6 F. R. 4634 No. 175, Sept. 9, 1941. Bee press release, p. 21.
t See p. 24.
(5)
(3) on that basis, sorts, grades, treats, packages or briquettes by power press, and otherwise prepares the scrap, making it suitable for direct industrial consumption; and,
(4) guarantees the delivery of scrap in an agreed amount and analysis.
Unless such person satisfies the four criteria, set forth above, he may not receive a converter’s premium. His scrap must not be sold at a price higher than the maximum prices set forth below.
Furthermore, a converter or any other person may receive, in addition to the maximum prices set forth below, a premium of a stated maximum amount on shipments of a specified quantity of material.
Kind or grade of scrap material Price f. o. b. point of shipment
Pure Nickel Scrap:
Containing 98 percent or more 26 cents per pound of material.
nickel and not more than % per-
cent copper.
Containing 90 percent up to 98 per- 26 cents per pound of nickel contain-
cent nickel. ed; no payment for any other metals
contained.
Converter’s Premium------------ 2 cents per pound of material.
Premium on shipments of 2,000 % cent per pound of material.
pounds or more of material at
one time.
Ferro-Nickel Chrome Iron Scrap:
Containing 20 percent up to 90 per- 26^ cents per pound of nickel contain-
cent nickel. ed; 8 cents per pound of chrome
contained; no payment for any
other metals contained.
Converter’s Premium____________ 1% cents per pound of material.
Premium on shipments of 10,000 cent per pound of material.
pounds or more of material at one
time.
Ferro-Nickel Iron Scrap:
Containing 14 percent up to 90 per- 26% cents per pound of nickel con-
cent nickel and no chrome. tained; no payment for any other
metals contained.
Converter’s Premium____________ 1% cents per pound of material.
Premium on shipments of 10,000 % cent per pound of material.
pounds or more of material at
one time.
Monel Metal Scrap:
New Monel Metal Clippings______ 20 cents per pound of material.
Soldered Monel Metal Sheet______ 18 cents per pound of material.
No. 1 Grade Monel Castings and
Turnings:
Containing a minimum of 60 15 cents per pound of material.
percent nickel, 30 percent
copper, and not more than
3 percent free iron, clean
and dry.
Kind or ffrade of scrap material Price f. o. b. point of shipment
Monel Metal Scrap---Continued.
Converter’s premium____________ 2 cents per pound of material.
Premium on shipments of 20,000 % cent per pound of material.
pounds or more of material at one
time.
Cupro-Nickel Alloy Scrap:
Containing 90 percent or more com- 26 cents per pound of nickel contain-
bined nickel and copper. ed; 8 cents per pound of copper con-
tained; no payment for any other
metals contained.
Containing less than 90 percent 26 cents per pound of nickel contain-
combined nickel and copper. ed; no payment for any other metals
contained.
Converter’s premium____________ 2 cents per pound of material.
Premium on shipments of 20,000 % cent per pound of material.
pounds or more of material at one
time.
(b)
Stainless Steel Scrap and Nickel Steel Scrap
In the event that a consumer of stainless steel scrap or nickel steel scrap shall employ an agent or broker to purchase such scrap for the consumer’s use, the consumer may pay the agent or broker for such scrap a sum not exceeding the applicable maximum price set forth below plus a commission, in the case of stainless steel scrap, of not more than 5 percent of such maximum price, excluding the $10 premium for briquetting, and in the case of nickel steel scrap, of not more than $1 per gross ton.¹ The commission shall be payable only if (a) the agent or broker guarantees the quality and delivery of an agreed tonnage of the scrap; (&) the commission is shown as a separate charge in invoicing and billing; and (c) the agent or broker does not split or divide the commission allowed him by a consumer with the seller or sellers of the scrap.
STAINLESS steel scrap
Kind or grade of scrap material Sheets, clippings, and solids * Turnings and borings1
18% Chrome-8% Nickel Type: $90 per gross ton ____________...
Containing I6%-20% chrome 28£ Per pound of nickel contained; $60 per gross ton.*
and 7%-10% nickel. 9^0 per pound of chrome con- $30 per gross ton less than the
All other grades or types of tained; no payment for any applicable maximum price
chrome-nickel stainless steel other metals contained. for sheets, clippings and solids.*
scrap.
l Price, f. o. b. point of shipment.
* Effective September 8,1941.
¹ The maximum commission of $1 per gross ton in the case ot nickel steel scrap shall become effective September 8, 1941.
422027°—41---2
The maximum prices set forth above apply on shipments of chromenickel type stainless steel scrap in carload lots. On shipments of such scrap in less than carload lots the applicable maximum price shall be $10 per gross ton less than the applicable maximum price on carload lot shipments.² The minimum quantity making up a carload lot for the purposes of this Schedule shall be the minimum quantity required to obtain railroad carload lot rates from the point of shipment to the point of destination. Such quantity may be made up of any kind or grade of stainless steel scrap, including both the chrome-nickel and the straight-chrome types. If delivery is made by truck, a carload lot shipment will be considered to have been made, for the purposes of this Schedule, if the minimum quantity making up the carload lot is delivered to the buyer within two days after the first shipment of the lot is picked up by truck.
STRAIGHT-CHROME TYPE
Kind or grade of scrap material Sheets, clippings, and solids1 Turnings and borings1
Containing 12%-14% chrome...... $35 per gross ton___________________ $30 per gross ton.1
Containing 14%-18% chrome______ $40 per gross ton___________________ $35 per gross ton.*
Containing over 18% chrome______ $40 per gross ton plus 9J^£ per $5 per gross ton less than the
pound for each pound of chrome applicable maximum price for
in excess of 18%.’ sheets, clippings and solids.3
¹ Price, f. o. b. point of shipment.
¹ Effective September 8,1941.
A maximum of $10 per gross ton may be added to the maximum prices set forth above for sales of stainless steel scrap, both chromenickel and straight-chrome types, in the form of power-compressed briquettes (not bundles or bales) which are suitable without further preparation for direct charging into an electric furnace. There is no requirement that the briquette actually be charged into an electric furnace; it must merely be suitable for such charging even though it may be charged into another type furnace.
NICKEL STEEL SCRAP
The maximum price at which a grade of steel scrap containing less than 1 percent of nickel may be sold to a consumer shall be the maximum price for a like grade of steel scrap, as set forth or determined under the Iron and Steel Scrap Price Schedule No. 4.
The maximum price at which a grade of steel scrap containing 1 percent or more nickel may be sold to a consumer shall be the maximum price for a like grade of steel scrap, as set forth or determined under
“Effective September 8, 1941.
the Iron and Steel Scrap Price Schedule No. 4, plus $1 per gross ton for each one-fourth of 1 percent of nickel content.³
⁸ The formula shall be applied in accordance with the following tables: 1% up to 1.24% nickel content, + $4.
1.25% up to 1.50% nickel content, +$5.
1.50% up to 1.75% nickel content, +$6.
1.75% up to 2.00% nickel content, +$7.
2 .00% up to 2.25% nickel content, +$8. etc.
Section 11
Appendix B¹
Maximum Prices for Secondary Monel Metal Ingot, Secondary Monel Metal Shot, and Secondary Copper-Nickel Shot
Kind or grade of secondary Price, cents
. (per pound, f. o. b.
material point of shipment)
Monel Ingot_______________________________________________________ 27
Monel Shot________________________________________________________ 27
Copper-Nickel Shot, containing 48 percent to 52 percent Nickel and 52 percent to 48 percent copper and not more than % percent foreign materials________________________________________ 25%
The maximum prices set forth above apply if secondary monel ingot or shot, or secondary copper-nickel shot is sold, shipped, delivered, or carried away, in lots of 30,000 pounds or more; if sold and shipped, delivered, or carried away in lots of:
Cents per pound may be added to such prices
10,000 up to 30,000 pounds---------------------------------------------- %
2,000 up to 10,000 pounds____________________________________________ 1
1,000 up to 2,000 pounds______________________________________________ 1%
500 up to 1,000 pounds_________________________________________ 2
100 up to 500 pounds____________________________________________ 2%
100 pounds______________________________________________________ 3%
* As amended : 6 F. R. 4684 No. 175, Sept 9, 1941.
(10)
Office for Emergency Management OFFICE OF PRICE ADMINISTRATION
Form 108: 2 WASHINGTON, d. C.
APPLICATION OF
(Name of applicant)
(Address)
Fok Permission to Carry Out Commitments Entered Into Prior to May 30, 1941, at Prices Higher Than the Maximum Prices Established by Price Schedule No. 8 for Scrap and Secondary Materials Containing Nickel
INTRODUCTORY
The applicant should file a sworn original and one copy of each application, and duplicates' of each Appendix thereto, with the Office of Price Administration, Washington, D. C.
Pursuant to section 3 of Price Schedule No. 8, this Office will grant permission to any person, herein referred to as the applicant, to carry out any firm commitment, entered into prior to May 30, 1941, which calls for the delivery, after May 30, 1941, of any of the scrap or secondary materials containing nickel, described in Appendix A or Appendix B of the Price Schedule, at prices higher than the maximum prices fixed in the Schedule: Provided, That quantities of such materials, sufficient to complete delivery under such commitment, were acquired at prices higher than the established maximum prices and held on May 30, 1941, by (1) the applicant, and (2) any other person, for delivery to the applicant, under a firm commitment entered into prior to May 30, 1941.
The applicant should furnish in the Appendices to the application such information as may be relevant in determining whether the conditions set forth above have been met. The appendices should be prepared only after reading the Instructions and Explanation, contained herein.
Application is hereby made pursuant to Section 3 of Price Schedule No. 8 for permission to carry out the firm commitments described in Appendix A, attached hereto, and to that end the applicant affirms :
A. That this application is filed for the purpose of enabling the applicant, by completing deliveries under such firm commitments, to avoid loss in the disposition of such scrap or secondary materials containing nickel, already acquired at prices higher than the established maximum prices ; and
(H)
B. That the firm commitments described in Appendix A were made prior to May 30, 1941, and that deliveries thereon have not been made, except to the extent indicated in Appendix A; and
C. That, in order to meet such firm commitments, the applicant, in the manner and to the extent indicated in Appendix B, has acquired the quantities of scrap or secondary materials containing nickel set forth in Appendix B, at prices higher than the established maximum prices and held such quantities on May 30, 1941; and
D. That, in order to meet such firm commitments, the applicant had outstanding on May 30, 1941, firm commitments for the purchase of such scrap or secondary materials containing nickel, as shown in Appendix C, attached hereto, and has been advised that the selling parties to such commitments, in the manner and to the extent indicated in Appendix C, acquired such materials at prices higher than the established maximum prices and held such materials on May 30,1941, for delivery to the applicant; and
E. That, as of May 30, 1941, the applicant held either in its inventory, as indicated in Appendix B, or under firm purchase commitments, as indicated in Appendix C, quantities of scrap or secondary materials containing nickel, set forth in Appendix B or Appendix C, sufficient to complete delivery on the firm commitments described in Appendix A; and
F. That the information contained in this application and in the Appendices attached hereto is complete and accurate to the best knowledge of the applicant.
The applicant understands and agrees that any permission granted pursuant to this Application to carry out commitments entered into prior to May 30, 1941, at prices in excess of those established by Price Schedule No. 8 may be revoked at any time, in whole or in part, upon it appearing that the facts are not as set forth in this Application and the Appendices attached hereto or that, for any reason, applicant is not entitled under the terms of said Price Schedule No. 8 to such permission.
(Applicant)
By----------------------------------
(Title of office)
Dated this_____________day of----------------------, 1941.
State of_____________________,
County of____________________________, ss:
On this______________day of________________________, 1941, before me personally
appeared______________________________, who being first duly sworn did depose
and say that he is the __________________________ of the ________________________
that he executed the foregoing Application on behalf of said___________________
_____________________and was duly authorized so to do, and that he has knowledge of the facts and statements set forth in said Application and in the Appendices thereto and that they are accurate and complete to the best of his knowledge, information, and belief.
Notary Public in and for the County of________, State of___________
My commission expires----------------------
INSTRUCTIONS AND EXPLANATION
1. Appendix A should contain a description of all the firm commitments which the applicant is seeking permission to complete. This description must be sufficiently complete to permit absolute identification of each such firm commitment and every relevant term thereof with respect to which permission is sought. The permission granted pursuant to this application will cover only delivery in accordance with the terms of the firm commitments as such terms are described in Appendix A.
The applicant, therefore, should include in Appendix A at least the following information with respect to each such firm commitment :
(a) Name and address of the purchaser.
(&) Date on which the firm commitment was made.
(c) Form of the commitment, 1. e., oral, exchange of letters, order form, signed agreement, etc.
(d) Kinds of grades, and quantity, in pounds or tons, of each kind or grade of scrap or secondary materials containing nickel committed giving (1) kinds or grades and quantity, in pounds or tons, of each kind or grade already delivered; (2) kinds or grades and quantity, in pounds or. tons, of each kind or grade remaining to be delivered after May 30, 1941, (3) delivery date or dates ; and (4) selling price per pound of each kind or grade.
If the commitment is in the form of a written agreement, a copy of the agreement should be made part of Appendix A and submission thereof may be sufficient to supply the required information.
The applicant should not include in Appendix A firm commitments which in the aggregate call for deliveries after May 30, 1941, of quantities of scrap or secondary materials containing nickel, greater than the quantities acquired at prices higher than the established maximum prices and held on May 30, 1941, by (a) the applicant, and (6) any other person, for delivery to the applicant under a firm commitment entered into prior to May 30, 1941. Exception will not be granted under section 3 of the Schedule in excess of this amount.
2. Appendix B should contain the best evidence the applicant can offer to establish that the quantities of scrap or secondary materials containing nickel held in its inventory on May 30, 1941, to meet the commitments described in Appendix A, were acquired by the applicant at prices in excess of the established maximum prices.
The applicant, wherever possible, should give, with respect to each such acquisition, (a) name of the person or persons from whom the scrap or secondary materials containing nickel were acquired; (b) date of purchase; (c) kinds or grades, and quantity, in pounds or tons, of each kind or grade, delivered to the applicant, and delivery date or dates; and (d) price per pound at which each kind or grade was acquired. It may also be possible to identify such materials as some particular lot or parts of present stocks. Information should be submitted in such form and detail as is practicable in the individual case.
3. Appendix C should contain information with respect to the quantities of scrap or secondary materials containing nickel acquired and held by any person on May 30, 1941, under a firm commitment for the sale of such materials to the applicant, and need be prepared only if the applicant is resting its application, in whole or in part, upon deliveries of such quantities and should include :
(a) With respect to each such firm purchase commitment; (1) name and address of the seller ; (2) date on which the commitment was made ; (3) form of the commitment ; (4) kinds or grades, and quantity, in pounds or tons, of each kind or grade of scrap or secondary materials containing nickel com
mitted to be sold to the applicant; (5) selling price per pound of each kind or grade; and (6) delivery date or dates.
(&) With respect to each seller’s acquisition of materials: On advice of the seller information to establish that the seller acquired such materials prior to May 30, 1941, at prices higher than the established maximum prices and the quantity, in pounds or tons, of each kind or grade of such materials • so acquired and held on May 30,1941, for delivery to the applicant.
4. Definitions.—
(a) “Firm commitment” means any binding obligation to sell, deliver, or transfer at a fixed price.
(&) “Scrap or secondary materials containing nickel” and “kinds or grades” of such materials mean the kinds and grades of scrap and secondary materials containing nickel referred to in Appendix A and Appendix B of Price Schedule No. &
Office for Emergency Management
OFFICE OF PRICE ADMINISTRATION
WASHINGTON, D. C.
Form 108:5 APPLICATION OF
(Name) (Address)
Fob Permission to Sell Imported Scrap ob Secondaby Materials Containing Nickel at Pbices Higheb Than the Maximum Pbices Established by Pbice Schedule No. 8
The applicant herein requests permission, pursuant to the provisions of section 3a of Price Schedule No. 8, to sell the scrap or secondary materials containing nickel, described below, at prices higher than the maximum prices established by Price Schedule No. 8, and to that end sets forth the following information :
1. Person from whom the materials were purchased.
(Name) (Address).
2. Date of shipment___________________________________________________________
3. If shipped by boat, name of boat___________________________________________
4. Prices at which such materials were purchased.
Kind or grade of material Quantity (in pounds or tons) of Price (f. o. b. Total cost to
each kind or grade point of applicant
shipment)
5. Person to whom such materials are to be sold.
(Name)
(Address)
6. State whether such purchaser is a dealer, converter or consumer, and if not a consumer, give the name of the prospective consumer.
7. Prices at which such materials are to be sold.
Kind or grade of material Quantity (in pounds or tons) of each Price
kind or grade
(Applicant)
By -------------------------------------
(Title of office)
Dated this___________._day of________________________ 1941.
State of______________________,
County of_____________________________, ss:
On this______________day of________________________, 1941, before me personally
appeared________________________________ who being first duly sworn did depose
and say that he is the_______________________________________of the_____________
-----------------------: that he executed the foregoing Application on behalf of said-------------------and was duly authorized so to do, and
that he has knowledge of the facts and statements set forth in said Application and in the Appendices thereto and that they are accurate and complete to the best of his knowledge, information, and belief.
Notary Public in and for the County of______________ State of__________
My commission expires______________________
8. Definitions:
(a) The term “person” includes an individual, partnership, association, corporation, or other business entity.
(6) “Scrap or secondary materials containing nickel” and “kinds or grades” of such materials mean the kinds and grades of scrap and secondary materials containing nickel referred to in Appendix A and Appendix B of Price Schedule No. 8.
Press Release
June 2, Wil—PM WO
Issuance of Price Schedule No. 8
Price Schedule No. 8 fixing ceiling prices for a wide variety of scrap and secondary materials containing nickel was issued yesterday by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply.
The schedule becomes effective today, Monday, June 2. It covers pure nickel scrap, ferro-nickel chrome iron scrap, ferro-nickel iron scrap, monel metal scrap, cupro-nickel alloy scrap, stainless steel scrap, nickel steel scrap, secondary monel metal ingot, secondary monel metal shot, and secondary copper-nickel shot. The schedule also fixes maximum prices for the straight chrome type of stainless steel scrap, which contains no nickel. Recent prices received for this type of stainless steel scrap have been out of line and it was felt advisable to include it in the price schedule, together with the other types of stainless steel scrap.
Mr. Henderson explained that imposition of price ceilings for these materials is necessitated by the “outrageous” prices charged in recent months for their nickel content. Frequently such prices have been double or triple the price of virgin nickel.
“This schedule represents another step in the general program of OP ACS to bring prices of scrap into line with prices of equivalent primary metals,” Mr. Henderson added. “The shortage of any metal ^ill not be permitted to serve as an excuse for run-away inflation of scrap prices.”
Except for stainless steel scrap and nickel steel scrap, basic maximum prices are established to apply on sales of scrap, unsuitable and unprepared for industrial consumption. However, a premium is allowed any seller of scrap, termed a “converter,” who performs all of the following functions:
(1) sells scrap directly to a consumer,
(2) by chemical test or assay, determines the metal constituents of the scrap,
(3) on that basis, sorts, grades, treats, packages, or briquettes by hydraulic press, and otherwise prepares the scrap, for direct industrial consumption,
(4) guarantees the delivery of scrap in an agreed amount and analysis. Unless a seller of scrap satisfies all four criteria, he is not a converter and is not entitled to the converter’s premium but must sell his scrap at not more than the basic maximum prices.
Quantity differentials are also established entitling any seller of scrap, whether he is a converter or not, to a premium for shipments of a specified quantity or more of material at one time. Thus a converter may be entitled to both the converter’s premium and the quantity premium. Sellers who are not converters may nevertheless be entitled to the quantity premium.
The following example will indicate how the maximum prices are to be computed. For example, the basic maximum price established for a pound of Inconel, containing 80 percent nickel, 14 percent chrome, and 6 percent iron, is 26^ cents per pound of nickel contained; 8 cents per pound of chrome contained, and no payment for the iron. The basic maximum price is thus 22.32 cents per pound. Any person shipping 10,000 pounds or more of Inconel at one time may receive 22.82 cents per pound, including a quantity premium of cent. A converter, shipping 10,000 pounds or more may receive 24.32 cents per pound, including a converter’s premium of 1% cents per pound. A converter shipping less than 10,000 pounds may receive 23.82 cents per pound.
In addition to the basic maximum prices fixed for stainless steel scrap, a premium of $10 a ton is allowed for sales of scrap in the form of hydraulic press briquettes.
The maximum prices for nickel steel scrap are tied to the maximum prices established for steel scrap in the Iron and Steel Scrap Price Schedule No. 4. A grade of steel scrap containing less than 1 percent nickel may not be sold at more than the maximum price for a like grade of steel scrap fixed in Price Schedule No. 4. The maximum price for a grade of steel scrap which contains 1 percent or more nickel is the maximum price. for a like grade of steel scrap fixed in Price Schedule No. 4, plus $1 per gross ton for each one-quarter of 1 percent of nickel content.
A broker’s commission is allowed on sales of stainless steel scrap or nickel steel scrap. The broker’s commission on stainless steel scrap is 5 percent of the established maximum price; it is 2 percent on nickel steel scrap.
The ceiling prices on secondary monel ingot, secondary monel shot, and secondary copper-nickel shot will bring the prices of these materials into line with the prices of equivalent secondary materials. Premiums are allowed for the sale of these secondary materials in smaller lots.
The maximum prices established in Price Schedule No. 8, go into effect on Monday, June 2, 1941, regardless of preexisting contracts.
However,, permission will be granted by this office, to any person to carry out contracts entered into prior to May 30, 1941, the date on which Price Schedule No. 8 was published in the Federal Register, if such permission is necessary to protect such person against loss in the disposition of inventory already acquired at prices higher than the established maximum prices. Forms on which application for such permission may be made are available upon request made to the Office of Price Administration and Civilian Supply, Washington, D. C.¹
Press Release
June 27,1914—PM 628
Amendment to Price Schedule No. 8
An amendment to Price Schedule No. 8 designed to facilitate and encourage imports of scrap and secondary materials containing nickel was issued today by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply.²
General effect of the amendment will be to permit the sale in this country of imported scrap and secondary materials containing nickel at prices above the established maximum prices. Resale prices will be sufficient to cover cost of importing the materials, including duty, freight, insurance, etc. However, permission must be obtained from OP ACS to carry through each such transaction at the higher price.
Action was taken after consultation with the Office of Production Management and many persons within the industry because of the importance of nickel to the defense program. The amendment provides:
(1) Scrap and secondary materials containing nickel may be purchased abroad at not above the maximum prices established in Schedule No. 8 for sales in this country. The Schedule fixes maximum prices on an f. o. b. shipping point basis.
(2) The importer may then apply to OP ACS for permission to sell such materials in this country at prices higher than those established as ceilings in Schedule No. 8.
(3) Such sales in this country will not be permitted at prices exceeding the maximums established in the Schedule for domestic sales, plus the duty, freight, insurance, etc., that must be paid to bring the materials to this country, plus the premiums allowed converters on sales of the particular kind or grade of scrap material involved as set forth in Appendix A of the Schedule.
¹ See Form 108 : 2, p. 11.
a See Sec. 3a, p. 2.
Forms on which application may be made for permission to sell imported scrap or secondary materials containing nickel at prices above the fixed ceiling prices are available upon request.³
Press Release
September 9,19^1—PM 1105
Amendments to Price Schedule No. 8
Amendments to the nickel-bearing scrap materials price schedule, growing out of recommendations made at a recent meeting of dealers and consumers, were announced today by Leon Henderson, administrator, Office of Price Administration.
The series of amendments were designed to clarify and revise certain aspects of Price Schedule No. 8, which became effective on June 2 and covered a wide variety of scrap and secondary materials containing nickel. The principal changes and the reasons for their adoption follow.
1. Maker not a converter: A manufacturer or fabricator who produces nickel-bearing scrap is prohibited from qualifying as a converter and thus is not entitled to the converters’ premium set forth in the schedule. The converters’ premium is allowed to enable those dealers who perform the specialized functions of a converter to continue in the performance of their functions. Allowing the industrial maker of scrap to be a converter would tend to squeeze the converter out of business because it would give the maker an incentive to sell directly to the consumer and thus bypass the converter. Definitions of a converter and an industrial maker are set forth in the amendment.
2. Revision of schedule on stainless steel scrap: One price—$90 per gross ton—is fixed for the so-called 18 percent chrome-8 percent nickel type of stainless steel scrap. Under the original schedule, the maximum price for 18-8 stainless steel scrap containing more than 0.08 percent carbon was $85 per gross ton. A maximum of $95 per gross ton was fixed for the same type containing 0.08 percent or less carbon. OPA’s experience indicated that the differential served no useful function and that in some instances merely afforded an opportunity for violation of the terms of the schedule.
A specific maximum price is established for stainless steel turnings and borings. Turnings and borings have been selling at prices out of line in relation to existing schedule prices, which were intended to apply to sheets, clippings, and solids. A maximum price of $30 per gross ton less than the applicable maximum price for sheets, clippings,
and solids is fixed for turnings and borings in the case of chromenickel type stainless steel scrap. In the case of the straight chrome type, the maximum price for turnings and borings is fixed at $5 per gross ton less than the applicable maximum price for sheets, clippings, and solids.
A maximum price of $10 per gross ton less than the applicable maximum price for carload lot shipments of chrome-nickel type stainless steel scrap is established for less than carload-lot shipments. The amendment provides that a carload lot may be made up of any kind or grade of stainless steel scrap, including both the chrome-nickel and the straight chrome types. One maximum price still applies, however, on straight-chrome stainless steel scrap, regardless of whether it is shipped in carload or less-than-carload lots.
Responding to a request by the Office of Production Management for uniformity in the present classification of straight chrome type stainless steel scrap, OPA breaks down its classification into a class containing 12 percent-14 percent chrome, one containing 14 percent-18 percent and another containing over 18 percent. The over 18-percent class is the only new one, and the maximum price for it is fixed at $40 per gross ton, plus 9^ cents per pound for each pound of chrome in excess of 18 percent.
The $10 briquetting premium set forth in the present schedule will be allowed under the revised schedule for sales of stainless steel scrap in the form of power-pressed briquettes “which are suitable, without further preparation, for direct charging into an electric furnace.” Under the old language, the premium applied only to “hydraulic-press briquettes.” OPA explained that some of the newer machinery for briquetting is electric rather than hydraulic, and no restrictions ought to be placed on the type of machinery used. The requirement that the briquette be suitable for direct charging into an electric furnace is necessary so that premiums cannot be claimed for sales of scrap in the form of bundles or bales. The premium is allowed only for briquetting—a function performed on behalf of the consumer—and not for baling scrap, which must be done preparatory to shipping. There is no requirement, it was pointed out, that the briquette be charged into an electric furnace; it may be charged into an open-hearth furnace; but before the premium is allowed, the briquette must be suitable for charging into an electric furnace.
It is made clear that the 5 percent broker’s commission allowed in sales of stainless steel scrap must be computed by taking 5 percent of the base maximum price excluding the $10 briquetting premium. Complaints have been received that many brokers have charged their customers 5 percent of a price which included the briquetting premium.
3. Brokers* commission on nickel steel scrap: Brokers will be allowed a flat premium of not more than $1 per gross ton on sales of
nickel steel scrap. Brokers had objected that the present 2 percent commission was too small in view of the small volume of available nickel steel scrap as compared with the much greater volume of available ordinary iron and steel scrap. OPA consulted consumers, who agreed that 2 percent was too low.
Excerpt from Circular O¹
Standard Classification for Old Metals Effective as of June 1, 1940
Issued by
National Association of Waste Material Dealers, Inc., 1109 Times Building, New York, N. Y.
DOMESTIC CLASSIFICATION OF NICKEL—NICKEL ALLOYS AND NICKEL BEARING MATERIALS
Nickel, Clippings.—Shall consist of New Nickel Clips—Plate and Skeleton material. Minimum Nickel contents 98% percent, Maximum Copper contents 0.50 percent.
New Nickel.—Shall consist of Forgings-Flashings-Punchings-New Pipe-Tubes-New Bright Wire or Screen-Bar-Rod-Angles-or other Structural Rolled Stock. Each grade to be packed and sold separately. Minimum Nickel contents 98% percent, Maximum Copper contents 0.50 percent.
Carbonized Nickel.—Packed and sold separately. 'Minimum Nickel contents 95 percent, Maximum Copper contents 0.50 percent.
Old Nickel Scrap.—Shall be of 98 percent-99 percent purity, maximum 0.50 percent Copper. All Rolled Stock should come under this Classification such as Sheet-Pipe-Tubes-Bars-Rods. Same to be free of soldered, brazed, or welded alloyed material. It shall also be free of trimmed seams that have been sweated. Soldered, Brazed, Welded and Sweated material shall be packed and sold separately. All painted material shall be packed and sold separately.
Old Nickel Wire-Screen-Cloth.—To be packed and sold separately. Samples should be submitted for quotations.
Nickel Castings.—To be packed and sold separately and sold on analysis or sample.
Manganese Nickel.—To be sold separately and/or by sample.
Cupro Nickel.—Describe the physical characteristics and send representative samples for quotations.
Nickel Turnings.—To be sold separately by analysis or according to sample. When submitting a sample of Turnings containing Oil, same shall be submitted in oil-proof containers.
Nickel Anodes.—Cast and Rolled, each to be Hard Anodes free of soft, carbonized and crusty material. Hooks to be cut off as close as possible to the Anode. Substitutions not permitted.
Clean Nickel Peelings and Strippings.—Sold on sample or analysis.
Copper Nickel Peelings or Strippings.—Sold on sample submitted or analysis.
Nickel Baskets.—Hooks-Racks and Hangers. Since this material varies to a great extent in Alloys and deposits of various Metals, representative samples should be submitted for quotation.
¹ See Appendix A, p. 5.
New Monel Metal Clips.—Should consist of New Monel Clippings-Skeleton-Plat.e, of the standard grade of Monel. Alloyed Monel to be packed and sold separately. No used or Cut Old Bright Sheet Monel will be acceptable. Monel Punchings to be sold separately.
Clean Old Monel Sheet.—Shall be of the standard grade of Monel, free of Alloyed Monel. No Sweated material of any kind acceptable. Free of welded, brazed or soldered material, other Metals and Alloy attachments.
Soldered Monel Sheet.—To be the whole or part of a Sheet. Free of trimmed seams or sweated trimmed seams. May include Monel Welded Sheet where a good portion of the piece is attached to the Weld.
Soldered Monel Wire, Screen and Cloth.—To be sold separately. Must be free of filled filter cloth and asbestos containing material.
Clean Monel Wire, Screen and Cloth.—Must be free of solder. Sweated material packed and sold separately.
Monel Turnings.—Should contain a minimum of 60 percent Nickel. To be free of other metals. Should the material contain Oil, sample should be submitted in oil-proof containers for a quotation.
Monel Castings.—To be guaranteed minimum 60 percent Nickel. All other Alloys of Monel Castings are to be packed and sold separately.
Nickel Silver Clips.—Sold on Nickel content specifications such as 10 percent, 12 percent, 15 percent, 18 percent, 20 percent. Leaded Nickel Silver Clips should be packed and sold separately. A description as to its physical characteristics should be made in offering all Nickel Silver material. It should also be free of Chrome Plated Material and any other Metal or Alloy content material.
Old Nickel Silver.—Shall consist of Old Nickel Silver Sheet-Pipe-Rod-Tubes-Wire-Screen, soldered or unsoldered. Must not be trimmed seams alone and it is also to be free of foreign substances, iron rimmed material or other Metals.
Nickel Silver Castings.—To be packed and sold separately.
Nickel Silver Turnings.—To avoid misunderstanding, to be sold by sample or analysis. Samples should be submitted in oil-proof containers when the sample contains oil.
Ferro-Nickel Chrome Iron.—Ferro-Nickel Chrome Iron materials whether Castings-Forgings-Pipe-Rod-Tubes-Wire Screen-Ribbon or in any other form, should be sold on analysis basis. Physical description should accompany each inquiry Approximate weight of pieces should accompany the inquiry. Copper content up to % percent to be acceptable.
Ferro-Nickel Iron Alloy.—Shall consist of Alloys containing Nickel and Iron only. Physical description should accompany each inquiry and, in the case of the larger pieces, approximate weight should be mentioned. Copper content in the Alloy up to percent to be acceptable. Material containing chrome should always be packed separately.
New Stainless Steel.—18-8 type graded as New Clippings 0.10 and under in carbon.
Stainless Steel.—18-8 type. Shall consist of New and Old Sheet-Pipe-Rod-Tubes-Forgings and Flashings. Sold with no carbon guarantee, but to be free of all other metals and Alloys.
Stainless Steel Castings.—Submit analysis, size of pieces and physical description.
Stainless Steel Turnings.—Submit sample.
Supplement
Establishment of the Office of Price Administration
On April 11,1941, the President issued Executive Order No. 8734,¹ establishing the Office of Price Administration and Civilian Supply, which combined the Price, Consumer, and, in part, Agricultural Divisions of the National Defense Advisory Commission. On April 15, 1941, Leon Henderson, Administrator of the Office of Price Administration and Civilian Supply, issued an order ratifying action taken by the Price Stabilization Division prior to the Executive Order of April 11,1941. This order provided as follows :
1. All price schedules, instructions, announcements, forms, and notices heretofore issued, promulgated, or adopted, and all committees formed by the Advisers on Price Stabilization and Consumer Protection, members of the Advisory Commission to the Council of National Defense, or by the Price Stabilization and Consumer Divisions of the Advisory Commission to the Council of National Defense are hereby ratified, adopted, and continued in effect, until modified, terminated, or superseded, as price schedules, instructions, announcements, forms, notices, and committees of the Office of Price Administration and Civilian Supply and the Administrator thereof.
2. This ruling is issued under, and in execution of the purposes of, Executive Order No. 8734, issued by the President on April 11,1941.
Issued this 15th day of April 1941?
Leon Henderson,
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 :
¹ 6 F. R. 1917 No. 73, Apr. 15, 1941.
² 6 F. R. 1965 No. 74, Apr. 16, 1941.
³ 6 F. R. 4483 No. 170, Aug. 30, 1941.
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 powers of the agency in regard to price control. Consequently all price ceiling schedules issued and all other action taken by this agency under the prior name remain fully effective under our new name.⁴
* Press Release, Aug. 30, 1941, PM 1059.
U.S. GOVERNMENT PRINTING OFFICE: 1941