[Point Rationing for Processed Foods] [From the U.S. Government Publishing Office, www.gpo.gov] Point Ratios'sng for Processed Foods WHOLESALERS BULLETIN No. 2 ISSUED BY THE FOOD RATIONING DIVISION OFFICE OF PRICE ADMINISTRATION UNITED STATES OF AMERICA WASHINGTON, D. C. 424—30-2-43 MARCH 1943 How Wholesalers Operate Under Point Rationing Food has gone to war. While it fights in the front lines, mobilization continues on the home front. Point rationing is mustering the full strength of the food forces. An important group of processed foods has become subject to ration control. You, as a wholesaler, hold a key position in the battle of supply, and your cooperation in the new rationing program for processed foods is extremely important. This Bulletin is designed to explain the point rationing system and show how you can help to make it successful. HOW WHOLESALERS ARE CLASSIFIED You are considered a wholesaler if you transfer 50 percent or more of your stocks of processed foods to persons other than consumers, such as retailers, other wholesalers, institutions, and industrial users. However, if the foods which you do not sell to consumers are used merely to supply other establishments owned by you, the place where you keep those stocks is not a wholesale establishment unless it supplies (1) at least one of your own wholesale establishments, or (2) at least four of your own retail establishments. Thus, if your warehouse supplies only two of your own retail establishments (and does nothing else), it is not considered a wholesale establishment, and the inventory at that warehouse would be included in the inventories of your retail establishments. Or, if your warehouse supplies only your own restaurants (which are considered “institutional users”) it would not be a wholesale establishment and the inventory at that warehouse would be included in the inventories of your institutional user establishments. An establishment carrying only processed foods produced or imported by the owner is a processor establishment, not a wholesale house. ANNOUNCEMENT OF POINT VALUES You should obtain from your Post Office copies of the Official Table of Point Values for all point-rationed items. The point values in the Table show the amount of ration currency you must pay when you buy (or collect when you sell) each can, jar, package, or bottle of processed foods. The reverse side of the Table contains instructions to guide retailers and wholesalers during the first month the rationing program operates. From time to time, changes in the point values of various rationed items will be announced through the newspapers and the radio. When these changes are made, a new Official Table of Point Values will be issued. At such times, you should go to your Post Office and obtain a copy of the revised Table. RATION BANK ACCOUNT MUST BE OPENED Under the new program all wholesalers are required to open a Ration Bank account. Open an account at your regular bank and deposit all ration currency you receive. It will be necessary to open one account for coffee, another for sugar, and a third for all processed foods. Keep in mind that all processed foods in this group will be covered by one account. You may open a separate Ration Bank account for each wholesale establishment you own, or you may open one account for several establishments. The only requirement is that all your processed food points be handled through the ration banking system. If you own both wholesale and retail establishments, you may open bank accounts for your retail as well as for your wholesale stores; some retailers are required to have Ration Bank accounts, and all retailers are permitted to have them. However, you may not use the same account for a wholesale and a retail establishment. The accounts must be separate. You will be asked for the name and address of your Ration Bank when you register to do business under this program. Ration banking will greatly simplify your operations under the point rationing program. It will reduce the burden of counting and safeguarding your ration currency, and will make the transfer of ration points relatively easy, since you will need merely to write a check for the correct number of points when you buy merchandise from a supplier. Ration banking is fully explained in OPA Retailer-Wholesaler Bulletin No. 16, which may be obtained from your nearest District, State, or Regional OPA Office. HOW TO OPERATE Beginning March 1 no processed foods rationed under this program may be sold or transferred without collecting ration currency equal in point value to the items sold. This means that your customers will give up points to you for any processed foods they buy, and when you order merchandise from your supplier, you in turn will have to give up points. Points must be collected when processed foods are sold—you cannot extend credit for points. When you sell point-rationed processed foods, you may receive stamps, certificates, or ration checks. Most large dealers will use ration checks. Small retailers, and institutional and industrial users, will not be required to have bank accounts, so they may give you stamps or certificates. You will deposit all ration currency, whether in the form of stamps, certificates, or checks, in your Ration Bank account. When you buy processed foods, you will make out a ration check to the credit of your supplier. Important: Point Rationing, at present, applies only to 16-33168-1 processed foods. You will continue to buy and sell coffee and sugar as in the past. This Bulletin does not affect those commodities. ADJUSTMENT OF INITIAL INVENTORY During March 1943, if you find that your stock of processed foods is not large enough to meet the demand under rationing, you may apply for adjustment of your inventory. File OPA Form R—315 with the nearest District or State OPA office. In the application, you must state the approximate amount, in points, of your stocks of processed foods, the amount, in points, of your sales or other transfers to date, and the size of the point inventory that you need. If it is found that you do not have sufficient stocks, you will be given a certificate for enough points to bring your stocks up to a satisfactory working level. Thus, no wholesaler need be handicapped by inadequate inventory prior to registration. STATEMENTS YOU MUST GIVE YOUR RETAILERS From March 1 until the beginning of registration on April 1, you must give your retail customers a signed receipt for each purchase of processed foods, showing the date of the purchase or transfer, your name and address, and the number of points given up for the items. The retailer will need these receipts for his own records, since he must attach to his registration papers a statement showing each of his purchases of processed foods during March, the name and address of his seller, and the number of points given up. REGISTRATION AND INVENTORY STATEMENTS The registration period for wholesalers will be from April 1 to 10, 1943, inclusive. You must register if you intend to deal in processed foods. The Registration Form (OPA Form R-1310) should be filed with the Office of Price Administration, c/o Bureau of the Census, Washington, D. C. This form will replace Form CF—2, which most wholesalers have been filing with the Office of Price Administration. The registration statement should be combined for all wholesale establishments you own. However, separate inventory reports must be attached for each establishment unless you wish to combine establishments in the same State into one inventory report. In order to fill out your Registration Form between April 1 and 10, you must have a complete inventory of processed foods (by items and sizes) as of the close of business February 28, 1943. This will provide you with your starting inventory under rationing. When filling out Form R-1310, you should report by items, sizes, and point values, all processed foods, located at each establishment. In addition to processed foods physically located at all establishments, you should include all processed foods in transit to your establishments or held on consignment. However, the following items should not be included in your inventory: (1) processed foods stored at your establishment for a person other than your customer or transferee, or held there as security for a loan to someone else or similar transaction, or in transit for either of these purposes; and (2) processed foods included in the inventory of one of your other establishments. The inventory report on R-1310 is called Schedule B. Schedule B should be submitted for each of your establishments unless you wish to combine the information for all of your establishments that are located in the same State. On the Registration Form you will also be asked to report the total point value of all processed foods sold or transferred by you during March 1943 (not including exchanges of merchandise or transfers from one to another of your wholesale establishments). POINT INVENTORY In order not to violate the rationing regulations, it will be important for you to know at all times, or be able to find quickly, the amount of your “point inventory.” You will calculate your point inventory when you register and at the end of each month thereafter. An example of this calculation follows: 1. Total point value of Actual Inventory on hand_______ 80, 000 2. Balance of points in your Ration Bank account, less any checks which have not yet cleared_______________________ 25, 000 3. Undeposited points you have on hand_________________ 12, 000 4. Points you have given to your supplier for goods not yet shipped________________________________________________ g, 000 5. Points to be received for goods you already have shipped- 7, 000 --------- 133,000 Deduct: 1. Points you have received for goods you have not yet shipped________________________________________ 8,000 2. Points yet to be paid for goods you have included in your inventory_______________________________________ 5,000 ------- 13,000 Net Point Inventory__________________________________ 120,000 MAXIMUM ALLOWABLE INVENTORY For each month, beginning with April 1943, you will be entitled to a maximum allowable inventory based on the point value of your sales and transfers during the previous month, multiplied by a factor which will be announced. This inventory figure will be stated in terms of points. Because of seasonal variations in processed food supplies, OPA may vary your maximum allowable inventory from month to month by changing the factor. You will find your maximum allowable inventory in this way: 1. Find the point value of all the processed foods you sold or transferred during the previous month. (Do not include exchanges of merchandise or transfers of processed foods from one to another of your wholesale establishments.) This figure will be the sum of the points ycu have received or which are due you for all your actual deliveries during the previous month. 2. Multiply that figure by the factor established by OPA for the month in question. The result is your maximum allowable inventory for the current month. Obviously, your maximum allowable inventory will change when your sales change or when the factor is changed. EXCESS INVENTORY If your maximum allowable inventory for April 1943, is smaller than your net point inventory at the end of March, the difference is “excess inventory.” In this case, you must give OPA a certified check drawn on your Ration Bank account for the number of points of the excess. This check must be attached to and forwarded with your registration statement. If, at the time you register, you do not have enough points to cancel out the excess, you may accumulate points and forward them later, but you must not. acquire processed foods until you have done so. You must never acquire processed foods when your actual inventory is larger, or when the acquisition will make it larger, than your maximum allowable inventory. 18-33159-1 WHEN TO APPLY FOR ADDITIONAL POINTS If your maximum allowable inventory for April is greater than your net point inventory at the end of the previous month, you may apply for a certificate for enough points to make up the difference. After April, whenever your maximum allowable inventory is at least 10 percent greater than your point inventory, you will be entitled to a certificate and may obtain one upon request. You may use this certificate to bring your stocks up to the maximum allowable inventory. Example 2 Point value of processed foods you sold last month___ 200,000 Factor by which you multiply to find maximum allowable inventory for this month___________________________— 2 Maximum allowable inventory for this month----------- 400,000 Point value of your processed foods inventory________ 200, 000 Number of points on hand and in bank_________________ 50, 000 Point inventory______________________________-—r-— 250, 000 Number of points for which you may apply for certificate- 150,000 REPORTS YOU MUST FILE You will be required to file a monthly report (OPA Form R—1310) supplying the same type of information about your inventory, points on hand, and transfers, as you gave in your registration statement. If you have more than one wholesale establishment, you must file a separate report for each, but you may combine in a single report all your wholesale establishments in a single State. Your first monthly report, for March 1943, will be part of your registration. Reports for subsequent months must be filed within 10 days after the end of eadh month. The regulations provide that you may not transfer or acquire processed foods while a monthly report is overdue. Important: Wholesale inventories must be adjusted from time to time to meet varying supply conditions. Future adjustments of your inventories will be based on the information you supply at registration and in your monthly reports. To obtain the largest inventory to which you are entitled, be sure that your reports are accurate. To enable you to make these reports, you must keep for each wholesale establishment a monthly record of the point value of all sales and transfers of processed foods. The record should not include exchanges or transfers from one to another of your wholesale places. You must also keep, at your principal office, a copy of your registration statement and copies of each inventory report that you file. If you have more than one wholesale establishment, you must keep at each establishment a copy of the reports filed for it. (If, however, you have filed a combined report for several wholesale places, you must keep copies of the reports at one of them, and must also keep, for each, a record of the inventory at the close of business on March 31, 1943.) Each time there is a change in the point value of a processed food item, you must make a record of the amount of that item you have in stock. The record also must show the point value of the item before and after the change, and the amount by which the point value of your inventory was increased or decreased as a result. These records must be kept for each of your wholesale places. EXAMPLES Here are some examples of the calculations you will have to make at registration and in your monthly reports (all figures shown here are assumed only for the purposes of these ex- HOW YOU CAN AID THIS PROGRAM Arrange meetings with your store managers, salesmen, and field men. If they are fully informed on the workings of the plan, they will be able to help many of the retailers you supply. Advise all your retailers who have not already received their copies to secure the Bulletins on Point Rationing (Nos. 14 and 20) and Ration Banking (No. 16) issued by OPA. Complete understanding of the plan now will save time and help retailers operate efficiently. CALENDAR OF IMPORTANT DATES February 21—28 (inclusive) February 28 March 1 March 31 Freeze period for consumers. You should have obtained the Official Table of Point Values from your nearest Post Office by this date. An inventory report of the food products subject to point rationing on hand at the close of business on February 28 will be required of you when you register. Rationing begins. On and after this date you must collect ration currency for all transfers, and pay ration currency for all acquisitions of the food products subject to point rationing. Open a Ration Bank account for processed foods as soon as you receive any ration currency. You cannot deal in point-rationed foods without this account. Keep a record of the Point Value of all transfers. You must state the total for each month in your monthly report. Calculate your Point Inventory at the end of the month. This figure must be included in your registration statement. amples) : Example 1 Point value of processed foods you sold last month___ 200,000 Factor by which you multiply to find maximum allowable inventory for this month______________________________ 2 Maximum allowable inventory for this month___________ 400, 000 Point value of your processed food inventory_________ 500, 000 Number of points on hand and in bank_________________ 100,000 Point inventory_________________________________—— 600,000 Excess inventory (certified check to be surrendered to OPA for this number of points)----------------------- 200, 000 April 1-10 (inclusive) May 1-10 (inclusive) Registration period. Register on OPA Form R-1310. Mail it to the Office of Price Administration, c/o Bureau of the Census, Washington, D. C. Report for the month of April. From now on, file a monthly report for each month within 10 days after the close of that month. Your monthly report, like your initial registration, will be made on OPA Form R—1310. 16-33159-1 Universal Conversion Table of Point Values This conversion table shows the point value of canned, bottled, and packaged foods in case lots. It will be useful in converting your food stocks into points when you calculate your point inventory. POINT VALUES PER UNIT POINT VALUES PER CASE OF— POINT VALUES PER UNIT POINT VALUES PER CASE OF— 4 6 12 24 36 48 72 96 100 4 6 12 24 36 48 1 „ „ . 4 8 12 16 20 • 6 12 18 24 30 12 24 36 48 60 24 48 72 96 120 36 72 108 144 180 48 96 144 192 240 72 144 216 288 360 96 192 288 384 480 100 200 300 400 500 51 204 208 212 216 220 306 312 318 324 330 612 624 636 648 660 1224 1248 1272 1296 1320 1836 1872 1908 1944 1980 2448 2496 2544 2592 2640 2 52 3 53 4 54 5 55 6. 24 28 32 36 40 36 42 48 54 60 72 84 96 108 120 144 168 192 216 240 216 252 288 324 360 288 336 384 432 480 432 504 576 648 720 576 672 768 864 960 600 700 800 900 1000 56 224 228 232 236 240 336 342 348 354 360 672 684 696 708 720 1344 1368 1392 1416 1440 2016 2052 2088 2124 2160 2688 2736 2784 2832 2880 7 57 8 58 9 59 10 60 11 44 48 52 56 60 66 72 78 84 90 132 144 156 168 180 264 288 312 336 360 396 432 468 504 540 528 576 624 672 720 792 864 936 1008 1080 1056 1152 1248 1344 1440 1100 1200 1300 1400 1500 61 244 248 252 256 260 366 372 378 384 390 732 744 756 768 780 1464 1488 1512 1536 1560 2196 2232 2268 2304 2340 12 62 13 63 14 64 15 65 16 64 68 72 76 80 96 102 108 114 120 192 204 216 228 240 384 408 432 456 480 576 612 648 684 720 768 816 864 912 960 1152 1224 1296 1368 1440 1536 1632 1728 1824 1920 1600 1700 1800 1900 2000 66 264 268 272 276 280 396 402 408 414 420 792 804 816 828 840 1584 1608 1632 1656 1680 2376 2412 2448 2484 2520 17 67 18 68 19 69 20 70 21 84 88 92 96 100 126 132 138 144 150 252 264 276 288 300 504 528 552 576 600 756 792 828 864 900 1008 1056 1104 1152 1200 1512 1584 1656 1728 1800 2016 2112 2208 2304 2400 2100 2200 2300 2400 2500 71 284 288 292 296 300 426 432 438 444 450 852 864 876 888 900 1704 1728 1752 1776 1800 22 72 23 73 24 74 25 75 26 104 108 112 116 120 156 162 168 174 180 312 324 336 348 360 624 648 672 696 720 936 972 1008 1044 1080 1248 1296 1344 1392 1440 1872 1944 2016 2088 2160 2496 2592 2688 2784 2880 2600 2700 2800 2900 3000 76 304 308 312 316 320 456 462 468 474 480 912 924 936 948 960 1824 1848 1872 1896 1920 27 77 28 78 29 79 80 30 31 124 128 132 136 140 186 192 198 204 210 372 384 396 408 420 744 768 792 816 840 1116 1152 1188 1224 1260 1488 1536 1584 1632 1680 2232 2304 2376 2448 2520 2976 3072 3168 3264 3360 3100 3200 3300 3400 3500 81 324 328 332 336 340 486 492 498 504 510 972 984 996 1008 1020 82 32 83 33 84 34 85 35 36 144 148 152 156 160 216 222 228 234 240 432 444 456 468 480 864 888 912 936 960 1296 1332 1368 1404 ' 1440 1728 1776 1824 1872 1920 ,2592 2664 2736 2808 2880 3456 3552 3648 3744 3840 3600 3700 3800 3900 4000 86 344 348 352 356 360 516 522 528 534 540 1032 1044 1056 1068 1080 87 37 88 38 89 39 90 40 41 164 168 172 176 180 246 252 258 264 270 492 504 516 528 540 984 1008 1032 1056 1080 1476 1512 1548 1584 1620 1968 2016 2064 2112 2160 2952 3024 3096 3168 3240 3936 4032 4128 4224 4320 4100 4200 4300 4400 4500 91 364 368 372 376 380 546 552 558 564 570 92 42 93 43 94 44 95 45 46 184 188 192 196 200 276 282 288 294 300 552 564 576 588 600 1104 1128 1152 1176 1200 1656 1692 1728 1764 1800 2208 2256 2304 2352 2400 3312 3384 3456 3528 3600 4416 4512 4608 4704 4800 4600 4700 4800 4900 5000 96 384 388 392 396 400 576 582 588 594 600 97 47 98 48 99 49 50 100 16-33159-1 U. S. GOVERNMENT PRINTING OFFICE