[New Machine Tools] [From the U.S. Government Publishing Office, www.gpo.gov] PRICE SCHEDULE No. 67 New Machine Tools OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION WASHINGTON, D. G. Table of Contents Page Price Schedule No. 67, New Machine Tools___________________________________ 1 1. Maximum prices for new machine tools and extras_____________ 1 2. Less than maximum prices ___________________._______________ 2 3. Evasion__________________________•__________________________ 2 4. Records and reports,:_,__________________________________________3 5. Affirmations__________________________________________________ 4 6. Enforcement, _________________________________________________ 4 7. Modification of the Schedule____________________________________ 4 8. Definitions: (a) Person____,____________________________________________ 5 (b) Price_________________________________________________ 5 (c) Net price______________________________________________ 5 (d) Manufacturer of new machine tools___________________ 5 (e) Dealer in new machine tools_________________________ 5 (f) User________________________________________________ 5 (g) Certified____________________________:--------------. - _ 5 (h) Machine tool________________________________________ 5 (i) Extra____________________:__________________________ 5 „ 9. Effective date of the Schedule_______________________________ 5 Forms: Form 167:1, Report of machine tools for which no list price was in effect on October 1, 1941, under Price Schedule No. 67 and of which no sales were made between January 1, 1941, and October 1, 1941______ 6 Form 167:2, Report of new machine tool and standard extra prices in effect on October 1, 1941_______________________________________ 8 Form 167:3, New machine tool manufacturers’ report of dealers______________ 11 Form 167:4, Affirmation of compliance for manufacturers, of and dealers in new machine tools____________1____________________________ 12 Form 167:5, Letter, January 26, 1942, to all new machine tool manufacturers and dealers____________________________________________ 13 Questions and answers pertaining to Price Schedule No. 67__________________ 14 Press Release, January 21, 1942, Issuance of Price Schedule No. 67_________ 17 Supplement: Establishment of the Office of Price Administration____________; 19 Note.—Price Schedules have also been issued for other commodities and ma-, terials and may be had upon request to the Office of Price Administration, Washington, D. C. A list of Price Schedules issued is also available. in PRICE SCHEDULE NO. 67 1 New Machine Tools Machine tools are the equipment by which countless manufacturers produce vitally needed war materials essential to the fulfillment of the War Program. Pyramiding up from the machine-tool industry are all of the manufacturing organizations of the country. The market for machine tools therefore is dependent upon the demand for the products of other manufacturers. The War Program has placed billions of dollars of new orders with manufacturers of all types of military products and the impact of these orders has fallen, with concentrated effect, upon the manufacturers of machine tools. The demand for these products has been so great, and so urgent that machine-tool builders were given the first and one of the highest priority ratings of any industry. Machine tool makers have been unable to keep pace with the orders for machine tools. The backlog of unfilled orders has steadily grown. Under such pressure the importance of price as a controlling force has been minimized. The time of delivery has become more important to buyers of machine tools than the price. Under such circumstances the inflationary danger is apparent. Although the industry was asked, by a letter of May 6, 1941, to hold firm the prices quoted on that date, there have been increases since May which are not entirely reflected in the general index of machine-tool prices as prepared by the Bureau of Labor Statistics. A substantial number of these increases have taken place without the approval of the Office of Price Administration. Today, the War Program has placed upon this industry demands which far exceed anything experienced before. The Office of Price Administration believes that the voluntary program has not been adequate to meet the demands of the situation which has already developed. Accordingly, under the authority vested in me by Executive Order No. 8734,2 it is hereby directed that— 1. Maximum prices jor new machine tools and extras.—(a) On and after January 20, 1942, regardless of the terms of any contract of sale 1 Issued: 7 F. R. 445, No. 15, January 22.1942. Published as title 32, oh. XI, pt. 1301, secs. 1301.51 to 1301.59, inclusive, 2 See Supplement, p. 19. or purchase, or other commitment, except as set forth in paragraph (b) hereof, no person shall sell, offer to sell, deliver, or transfer any new machine tool or extra, and no person shall buy, offer to buy, or accept delivery of any new machine tool or extra— (1) at a price higher than the list price of such machine tool or extra in effect on October 1, 1941; or (2) if there were no list price in effect on October 1, 1941, the maximum price shall be the last price at which such new machine tool or extra was sold from January 1, 1941, to October 1, 1941; or (3) if the new machine tool or extra had no list price on October 1, 1941, and was not sold within the period from January 1, 1941, to October 1, 1941, the maximum price shall be the price on October 1, 1941, of the most nearly comparable machine tool or extra produced by the same manufacturer, adjusted to reflect increases or decreases in cost resulting from significant mechanical differences. If the maximum price is to be determined under this subparagraph (3), the proposed price and a description of such new machine tool or extra together with an indication of the machine tool or extra deemed by the manufacturer to be most nearly comparable and cost estimates indicating the changes in cost resulting from significant mechanical differences shall be submitted on Form 167:13 to the Office of Price Administration not less than 30 days before the date of delivery of such machine tool or extra and such price shall be the maximum price unless an objection is made by this Office within 15 days after the receipt of such information. (b) The provisions of this section shall not apply to deliveries under contracts entered into by the Army, Navy, Defense Plant Corporation, Procurement Division of the Treasury, or any other agency of the United States prior to the effective date of this Schedule. (c) Nothing in this section shall prevent the inclusion in any contract for the sale of any new machine tool or extra of a provision for adjustment of the original contract price on deliveries actually made more than nine months after the date of execution of the contract, if such provision expressly limits payments made under the contract to the maximum price established by the Office of Price Administration or its successor and in effect on the date of delivery of any such new machine tool or extra. 2. Less than maximum prices. Lower prices than those set forth herein 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 new machine tools or extras, alone or in conjunction with any other material, or by way of any commission, service, transportation, or other special charge, or 3 See pp. 6,13. discount, premium, or other privilege, or by tying agreement or other trade understanding, or otherwise, as a result of which the net price received by the seller of a machine tool or extra will exceed the net price which would have been received by such seller if such machine tool or extra had been sold on October 1, 1941. The provisions of this section shall not apply to discounts, allowances, or concessions on sales by a manufacturer of new machine tools to a dealer in new machine tools. 4. Records and reports.—(a) Every manufacturer of and every dealer in new machine tools making any sale after January 20, 1942, shall keep for inspection by the Office of Price Administration for a period of not less than one year complete and accurate records of each such sale, showing the date thereof, the name and address of the buyer, the list price on the date of sale, the gross price on the date of sale if there is no list price, the net price received, and the number and description of each type of new machine tool or extra sold. (b) On or before February 15, 1942, every manufacturer of new machine tools shall file a statement on Form 167:2 4 with the Office of Price Administration setting forth (1) the list price on October 1, 1941, of each type and size of machine tool and extra offered for sale by such manufacturer on such date, any special charges, discounts, allowances or concessions in effect on October 1, 1941, and the last sale price between January 1, 1941, and October 1, 1941, on every machine tool or extra for which there was no price list in effect on October 1, 1941; and (2) the list price on May 6, 1941, of any type of machine tool or extra on which the price has been increased and the amount of any such increase, and on Form 167:3 s the names and addresses of all dealers in new machine tools to whom such manufacturer has sold new machine tools since January 1, 1941. (c) On or before April 1, 1942, çvery manufacturer of new machine tools shall file with the Office of Price Administration a certified balance sheet as of December 31, 1941, and a certified profit-and-loss statement for the year 1941. All balance sheets and profit-and-loss statements shall be duplicates of the statements filed with the Bureau of Internal Revenue in making income-tax returns. Any corporation whose fiscal year does not coincide with the calendar year shall file a certified balance sheet and a profit and loss statement within three months of the close of such fiscal year in the same form as is required for corporations whose fiscal year coincides with the calendar year. (d) Persons affected by this Schedule shall submit such other reports to the Office of Price Administration as it may, from time to time, require. 5. Affirmations.—On or before April 10, 1942, and on or before the 10th day of each third month thereafter, every manufacturer of and every dealer in new machine tools who, during the preceding three calendar months has sold new machine tools or extras, whether for immediate or future delivery, shall submit to the Office of Price Administration an affirmation of compliance on Form 167:4 6 containing a sworn statement that during the preceding three months all offers to sell, sales, deliveries, and transfers were made at prices in compliance with this Schedule. Copies of Form 167:4 can be procured from the Office of Price Administration, or, provided that no change is made in the style and content of the Form and that it is reproduced on 8- by 10^-inch paper, they may be prepared by persons required to submit affirmations hereunder. 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 invoke all appropriate sanctions at its command, including taking action to see (a) that the Congress and the public are fully informed thereof; (b) 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 which may be regarded as grounds for the revocation of licenses and permits; (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; and (e) that the War Production Board is requested to direct the withholding of priority ratings and the allocation of materials to any person failing to comply with this Schedule. Persons who have evidence of the offer, receipt, demand, or payment of prices higher than the maximum prices, or of any evasion or attempt to evade the provisions hereof, or of speculation, or manipulation of prices of new machine tools, or of the hoarding or accumulating of unnecessary inventories thereof, are urged to communicate with the Office of Price Administration. t 7. Modification of the Schedule.—Persons claiming hardship or inequity in the operation of this Schedule as a result of subcontracting or for any other reason may apply to the Office of Price Administration for approval of any modification thereof or exception therefrom: 6 See pp. 12,13. 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) “price” means the price for a machine tool or extra f. o. b. manufacturer’s plant and before adjustment for any special charges, discounts, allowances, or concessions; (c) “net price” means the price for a new machine tool or extra plus any applicable special charges and less any applicable discounts, allowances, or concessions; (d) “manufacturer of new machine tools” includes any agent of such manufacturer and does not include any person whose work on machine tools is restricted solely to the reconditioning or repair of used machine tools; (e) “dealer in new machine tools” means any person engaged in the business of purchasing new machine tools for resale; (f) “user” means any purchaser of a new machine tool or extra other than a dealer in new machine tools ; (g) “certified” referring to a balance sheet or profit-and-loss statement means a balance sheet or profit-and-loss statement sworn to be a correct statement of the financial condition of a corporation by the principal accounting officer of the corporation or other person having knowledge of the relevant facts and authorized by the corporation to certify in its behalf ; (h) “machine tool” means all machines for the cutting, abrading, shaping, and forming of metals ; (i) “extra” means standard supplementary equipment furnished by the manufacturer at added cost above the price of any machine tool. 9. Effective date ofi the Schedule.—This Schedule shall become effective January 20, 1942. Issued this 20th day of January 1942. Le.on Henderson, Administrator. WASHINGTON, D. C. Report of Machine Tools for Which No List Price Was in Effect on October 1, 1941, Under Price Schedule No. 67 and of Which No Sales Were Made Between January 1, 1941, and October 1, 1941 This form must be completed and filed by all manufacturers of machine tools as required by Section 1 of Price Schedule No. 67. Name of company______________________________________________________________________ Address of company_________________i_______________________________________________ (Street) (City) ' (State) Submitted by ______________________,_____._____________________________________ (Name) (Position) (Date) Please complete the following form for each machine tool which you manufacture or build which had no list price in effect on October 1, 1941, and was not sold between January 1, 1941, and October 1, 1941. Machine tool which had no list price in effect on Oct. 1, 1941, and which was not sold between Jan. 1, 1941, and Oct. 1, 1941 Most comparable machine tool on Oct. 1,1941 Proposed price $ Price in effect on Oct. 1, 1941 $ Type Type Size Size General specifications General specifications Itemize significant mechanical differences from comparable tool Machine tool which had no list price in effect on Oct. 1, 1941, and which was not sold between Jan. 1, 1941, and Oct. 1,1941 & Most comparable machine tool on Oct. 1, 1941 1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 6. 6. 7. 7. 8. 8. 9. 9. 10. 10. 11. 11. 12. 12. 13. 13. 14. 14; 15. J5. Comparative costs for each significant mechanical difference listed above (Valued at present costs] Material cost Labor cost Overhead Total cost Material cost Labor cost Overhead Total cost 1. $ $ $ $ 1. $ $ $ $ 2. 2. 3. 3. 4. 4. 5. 5. 6. 6. 7. 7. 8. 8. 9. 9. 10. 10. 11. 11. 12. 12. 13. 13. 14. 14. 15. 15. (a) Estimate the volume of production which this machine is expected to reach in the next twelve months. ________,_____________________________________ . (number of units) (b) Number of units upon which the above costs are based. _______________ (number of units) WASHINGTON, D. C. Report of New Machine Tool and Standard Extra Prices in Effect on > October 1, 1941 This form must be completed and filed by all manufacturers of new machine tools as required by section 4 of Price Schedule No. 67. Name of company_________________________________________________________________________ Address of company__________________________________________________________:_____________ (Street) (City) (State) Submitted by______________________________________________________________________'_____ (Name) (Position) (Date) 1 A. Catalogues and published price lists may be submitted in lieu of this form only to the extent that information requested in this form is contained in such catalogues and price lists. 1 B. Instruction: Insofar as possible, machine tools should be listed by type, as indicated by the following examples: Horizontal Boring Machines; Jig Boring Machines; Vertical Boring Machines; Deep Hole Drilling Machines; Radial Drilling Machines; Rifle Reaming Machine; Chambering Machines; Hobbing Machines; Gear Grinding Machines; Rifling Machines; Internal Grinding Machines; Thread Grinding Machines; Engine Lathes 24 inches and up; Turret Lathes; Multi-Spindle Auto Bar Machines; Milling Machines; Thread Milling Machines; Profiling Machines; Planers 34 inches and up; Tool-Room Lathes (except Bench). Schedule of prices, discounts, and terms as of Oct. 1, 1941, and price changes from May 6 to date Description of machine tool List price of basic machine as of Oct. 1, 1941, or last sales price. (See note 4.) Special charges, discounts, allowances, or concessions in effect on Oct. 1,1941,1 or on date of last sale. (See note 4.) Price increases from May 6 to date2 Increased from— Increased to— List price of basic machine as of May 6, 1941 New price and date of change 3 New price Effective date of new price 1. Type: Size: 2. Type: Size: 3. Type: Size: 4. Type: Size: 5. Type: Size: 6. Type: Size: 1 Special charges, etc., shall be listed by type of purchaser. 2 Report in columns 4, 5, and 6 only machine tools for which prices have increased since May 6, 1941. If more than one price increase occurred for a particular machine, use additional lines and bracket together. 3 If any changes have been made in special charges, discounts, allowances, or concessions since May 6, 1941, describe such changes and the dates on which they were first put into effect. 4 If there was no list price on Oct. 1, 1941, report last sales price (the price before adjustment for special charges, discounts, allowances, or concessions) between Jan. 1 and Oct. 1, 1941, and indicate the date of such sale, i. e., $2,500 (7/15/41). Also in the next column report all such special charges, discounts, allowances, or concessions applicable to such sale. Schedule of prices, discounts, and terms as of Oct, 1, 1941, and price changes from May 6 to date Description of Standard Extra List price of Standard Extra as of Oct. 1, 1941, or last sales price (see note 4) Special charges, discounts, allowances, or concessions in effect on Oct. 1, 1941,> or on date of last sale (see note 4) Price increases fom May 6 to date 2 Increased from— Increased to— List price of Standard Extra as of May 6, 1941 New price and date of change 3 New price Effective date of new price 1. Type: Size: 2. Type: _ Size: 3. Type: __ Size: 4. Type: Size: 5. Type: Size: ■ 6. Type: Size: i Special charges, etc., shall be listed by type of purchaser. 2 in columns 4, 5, and 6 only machine tools for which prices have increased since May 6,1941 If more than one price increase occurred for a particular machine, use additional lines and bracket together jny changes have been made in special charges, discounts, allowances, or concessions since May 6 1941, describe such changes and the dates on which they were first put into effect. 4 If there was no list price on Oct. 1,1941, report last sales price (the price before adjustment for special charges, discounts, allowances, or concessions) between Jan. 1,1941, and Oct. 1,1941, and indicate the date of such sale, i. e.,$2,500 (7/15/41). Also in the next column, report all such special charges, discounts, allowances, or concessions applicable to such sale. Office of Price Administration WASHINGTON, D. C. New Machine Tool Manufacturers’ Report of Dealers This form must be completed and filed by all manufacturers of new machine tools as required by section 4 of Price Schedule No. 67. N ame of Company_________________________________________________________________ Address of Company_____________________________________________________________ (Street) (City) (State) Submitted by_____________________________________________________________________ (Name) (Position) (Date) I. List the names and addresses of all dealers in new machine tools to whom you have sold machine tools or extras during the period from January 1, 1941, to date. Dealers in new machine tools Name of dealer Street address City State 1. 2. _ 3. 4. _ 5. 6. 7. 8. 9. 10. 11- _ 12. __ 13. 14. _ 15. TEMPORARY BUILDING D WASHINGTON, D. C. Affirmation of Compliance for Manufacturers of and Dealers in New Machine Tools 1 Pursuant to the requirements of Price Schedule No. 67, the undersigned affirms that during the period of three months from__________________, 19__, to ____________________:, 19_the undersigned has not sold, offered to sell, or delivered any new machine tool or extra, as defined in Price Schedule No. 67, at a price in excess of that established by Price Schedule No. 67, or by any exception therefrom or modification thereof which has been approved by the Office of Price Administration. Furthermore, the undersigned has made no change in any special charge, discount, allowance, or concession, other than as permitted by section 3 of Price Schedule No. 67, as a result of which the net price received or to be received for any new machine tool or extra sold to a user has exceeded or will exceed the net price which would have been received if the machine tool or extra had been sold on October 1, 1941. (Manufacturer or Dealer) By------------------------________ (Partner or Authorized Officer) Subscribed and sworn to before me this_____day of_______________, 19__. (Notary Public) 1 This Affirmation of Compliance must be executed by the manufacturer or dealer if the manufacturer or dealer is a sole proprietor, or by a partner or officer on behalf of the manufacturer or dealer if the manufacturer or dealer is a partnership or corporation. Office of Price Administration WASHINGTON, D. C. TEMPORARY BUILDING D January 26, 1942. Refer to: 2:10:JJR To All New Machine Tool Manufacturers and Dealers. Gentlemen: I am enclosing with this letter copies of Price Schedule No. 67, New Machine Tools, effective January 20, 1942, and the forms called for within that Schedule. You will note that this Price Schedule requires all persons selling new machine tools not to dispose of them at prices which exceed the maximum prices established in the Schedule. These maximum prices thus apply to sales by dealers as well as manufacturers. Price Schedule No. 67 is implemented by four forms. The first of these, No. 167:1, applies to special machinery for which no regular list price existed in October 1, 1941, and for which no recent last sale price can be determined. It is designed to assist the manufacturers of special machinery when attempting to determine an appropriate price for their product under section 1. Form No. 167:2 provides a means for reporting the price history of machine tools. It is to be returned to the Office of Price Administration by the manufacturer not later than February 15, 1942. Form No. 167:3 is to be used by the manufacturer in reporting the names and addresses of dealers used in the distribution of machine tools. It is to be completed and returned to the Office of Price Administration not later than February 15, 1942. Particular attention is directed to Form No. 167:4. This form is to be completed and filed quarterly with the Office of Price Administration by all manufacturers and dealers. The first of these Affirmations of Compliance must be filed by April 10, 1942. Manufacturers and dealers are required by section 4 to keep records of all sales made by them after January 20, 1942. I should like also to call your attention to section 7 of this Schedule. Any person claiming hardship or inequity in the operation of this Schedule as a result of subcontracting or for any other reason may apply to the Office of Price Admin-istration for approval of a modification of the Schedule. The interests of our Nation under the AVar Program require the full energy of the whole of our people. The Office of Price Administration has been charged with the duty of seeing that this energy is not dissipated by a dangerous inflationary spiral. This Schedule has been promulgated to achieve that purpose. If you have any questions, please write this Office. Very truly yours, Leon Henderson, Administrator. Questions and Answers Pertaining to Price Schedule No. 67 The following questions and answers have been prepared as a guide to persons affected by Price Schedule No. 67 to assist them in complying with its provisions. The material is only intended as explanatory of the detailed provisions of the Schedule and readers must refer to the Sections of the Schedule mentioned at the end of each answer for the full provisions of the Schedule on the points covered. 1. Q. What is the effective date of the Schedule? A. The effective date is January 20, 1942. (See Section 9 of the Schedule) 2. Q. What price does the new machine tool schedule establish for new machine tools and extras? A. The maximum price for a machine tool or extra is the list price of that machine tool or extra on October 1, 1941. If there was no such list price in effect on October 1, 1941, the maximum price is the last price at which the machine tool or extra was sold between January 1, 1941 and October 1, 1941. If there was no list price on October 1, 1941 and no sale between January 1, 1941 and October 1, 1941, the maximum price is the price on October 1, 1941 of the most nearly comparable machine manufactured by the same manufacturer, adjusted to reflect cost changes resulting from significant mechanical differences. (See Section 1 (a) of the Schedule) 3. Q. May the net price received by a manufacturer for a machine tool be varied by changes in discount practices or special charges? A. The net price received for a machine tool may not be changed by alterations in special charges or discount practices if the change causes an increase in the net price received by the manufacturer above the net price on October 1, 1941. (See Section 3 of the Schedule) 4. Q. Do the maximum prices of the Schedule apply to dealers as well as to manufacturers? A. Yes, the maximum prices established by the Schedule apply to all persons. (See Section 1 (a) of the Schedule) 5. Q. What reports must be filed by the manufacturer? A. Each manufacturer shall file the following reports: 1. Form 167:1, not less than 30 days before delivery of any machine tool for which no list price was in effect on October 1, 1941 and of which no sales were made between January 1, 1941 and October 1, 1941. 2. On or before February 15, 1942, Form 167:2 setting forth the new machine tool and standard extra prices in effect on October 1, 1941. 3. On or before February 15, 1942, Form 167:3 setting forth the names and addresses of dealers. 4. On or before April 10, 1942 and every third month thereafter, Form 167:4, an Affirmation of Compliance. Each manufacturer must file on or before April 1, 1942 a balance sheet and profit and loss statement for 1941. (See Sections 1 (a) (5), 4 and 5 of the Schedule') 6. Q. Who must keep records of transactions? A. Both manufacturers and dealers must keep records. (See Section 4 of the Schedule) 7. Q. What reports must be filed by dealers? A. Each dealer in machine tools must file on or before April 10, 1942 and every third month thereafter an affirmation of compliance containing a sworn statement that all transactions in machine tools or extras were conducted in compliance with the Schedule. (See Section 5 of the Schedule) 8. Q. Can price adjustment clauses be employed in the contracts by which manufacturers sell machine tools? A. A price adjustment clause may only be used in a contract if the contract contains a statement substantially as follows: The price adjustment provisions contained in this contract shall only be employed to increase the prices of products delivered under this contract more than nine months after the date on which the contract is executed and in no event shall the final prices after adjustment exceed the maximum prices established by the Office of Price Administration and in effect on the dates of delivery of the products herein contracted for. (See Section 1 (c) of the Schedule) 9. Q. Is there any provision for relieving manufacturers who are unable to sell machines at the October 1, 1941 list prices? A. Yes, exceptions and modifications may be made by the Office of Price Administration in cases of hardship. Application should be made to the Office of Price Administration explaining in detail the reasons for requesting the exception or modification. (See Section 7 of the Schedule) 10. Q. Do the maximum prices established in the Schedule apply even where there was an existing contract on the effective date of the Schedule specifying higher prices than such maximum prices? A. Yes, the maximum prices apply even though an existing contract calls for a higher price, except that all contracts with the Army, Navy, Defense Plant Corporation, Procurement Division of the Treasury or with any other agency of the United States may be fulfilled at the contract price if such contract was entered into prior to January 20, 1942. (See Section 1 (a) and 1 (6) o/ the Schedule) 11. Q. What extras are covered by the Schedule? A. Extras within the meaning of the Schedule are standard supplementary equipment furnished by the manufacturer at an added cost above the price of the basic machine tool. (See Section 8 (i) of the Schedule) 12. Q. What machine tools are covered by the Schedule? A. Machine tools within the meaning of the Schedule are all machines for the cutting, abrading, shaping and forming of metals. Hence, the Schedule includes some machines such as presses which are not included within other classifications of machine tools. In case of doubt whether any particular type of machine is included within the Schedule, a complete description of the machine should be sent to the Office of Price Administration with a request for an interpretation. (See Section 8 (h) of the Schedule) Press Release January 21, 1942—PM 2267 Issuance of Price Schedule No. 67 New machine tools, key items in the production of all implements of modern mechanized war, are brought under a price ceiling at the levels of October 1, 1941, in a new schedule announced today by Leon Henderson, Administrator, Office of Price Administration. Defining machine tools as “all machines for the cutting, abrading, shaping, and forming of metals,” the new schedule covers in addition to lathes, planers, milling machines, etc., such items as metalworking presses which are not ordinarily thought of as machine tools. Mr. Henderson ascribed the need for a price ceiling over new machine tools to the imbalanced situation with regard to production and demand. “Under the stimulus of British requirements and the needs of our own defense program, the machine tool industry received hundreds of miffions of dollars’ worth of orders,” said the OPA Administrator. “Despite greatly expanded output, the backlogs of machine tool orders have continued to grow. “The defense program has been superseded by a tremendous war program that will further increase demands for new machine tools. The threat to price stability under these circumstances is obvious and must be headed off.” Mr. Henderson’s first direct action to hold new machine tool prices in line was taken on May 6, 1941, when he asked all producers to adhere to the price levels prevailing on that date. This request was repeated on August 18, 1941, when reports of price advances reached OPA. Indications of further price unsettlement caused Mr. Henderson to call a meeting of a representative group of machine tool builders for October 22 to discuss the advisability of a formal price ceiling. These discussions were continued at a second meeting with the same group on November 17 at which a tentative maximum price schedule was talked over with the manufacturers attending. On January 7, 1942, some 300 manufacturers of machine tools, representing practically the entire industry, met with OPA staff members and were informed of the provisions of the proposed ceiling. Today’s schedule embodies many of the suggestions made by various members of the industry with regards to trade practices and policies. The new schedule, No. 67, forbids the sale by dealers or manufacturers of new machine tools or extras on and after January 20, 1942, at prices higher than the October 1, 1941, list prices. If there was no list price on October 1, the maximum price is the last price at which a similar tool or extra was sold between January 1 and October 1, 1941. A special section spells out the method of determining the maximum price for newly developed or special equipment. Full details of such equipment must be furnished to OPA, along with the proposed selling price, not less than 30 days before the date of delivery. The price thus submitted shall be the maximum price unless OPA objects within 15 days after receipt of the information. Existing price arrangements in outstanding contracts between machine tool makers and the Army, Navy, Defense Plant Corporation, Treasury Procurement Division, or any other agency of the United States are not disturbed by the new Schedule. Deliveries under all other contracts, however, must conform to the new maximum prices. To protect manufacturers who conclude contracts under which deliveries may be made nine months or more from the date of the contract, the schedule permits the inclusion in such contracts of a provision giving the seller the benefit of any change that may be made in the ceiling prices prior to the date of delivery. All manufacturers are required to file with OPA by February 15, 1942, complete lists of maximum prices as determined by applying the provisions of the schedule. Other information that the schedule requires includes quarterly affirmations of compliance with the maximum prices from all dealers and manufacturers. Supplement Establishment of the Office of Price Administration On April 11, 1941, the President issued Executive Order No. 8734/ 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 Admihistrator 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 announced 1 6 F. R. 1917 No. 73, Apr. 15, 1941. 2 6 F. R. 1965 No. 74, Apr. 16, 1941. » 6 F. R. 4483 No. 170, Aug. 30, 1941. 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 4 Press Release, Aug. 30,1941, PM 1059. 20 . U. S. GOVERNMENT PRINTING OFFICE: 1942