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81 Trans 31:1 *328*' 1 Untff l/' f Ceiling Price Reg. 3 FEB 2, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency jCPR 31 Coal, Except Pennsyl\ania Anthracite, Delivered From Mine or Preparation Plant Pursuant to the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency. General Order No. 2 (16 F. R 738) : It is hereby ordered, Thar ceiling prices and ceilings on the weighted average realiza¬ tion on the sale of coal, except Pennsyl¬ vania anthracite, from a mine or prepa¬ ration plant shall be effective as provided in this Ceiling Price Regulation No. 3. Statement of considerations. Bitu¬ minous coal prices have been non-infla- tionary since the Korean outbreak. However, with the threat of a more seri¬ ous emergency and the possibilities of record-high levels in industrial activity resulting from the defense program, it is likely that a basic industry such as coal will not be able to avoid the forces of inflation. During World War II coal proved to be the main source of energy for the economy, and it was produced in great volume to satisfy the civilian and military needs of the country. It again may have to be produced in large amounts to meet the needs of the coun¬ try in building its defenses. Average mine realization, i. e., the average price per ton f. o. b. the mine, has changed very little during the last three years. According to figures com¬ piled and published by the United States Bureau of Mines, the average mine reali¬ zation was as follows: Per ton 1948 _ *4 99 1949 _ 4 85 1950 estimated_ 4. 90 Since July 1948 wholesale prices on bituminous coal—f. o. b. mine prices plus transportation charges—compiled by the United States Bureau of Labor Statis¬ tics, have fluctuated within a narrow range of one percent. At the same time, they reflect increased transportation costs in part, which means that current mine prices are lower, even though slightly, than they were a year or two back. According to the latest informa¬ tion available, it appears that the bitu¬ minous coal price level has changed little since 1948, and the change that has taken place has edged downward. There is no evidence of a general increase in bituminous coal prices since the Korean outbreak. Bituminous coal is mined in 30 States of the United States and Alaska by thou¬ sands of companies. Over 90 percent of the total production is mined east of the Mississippi River to supply a sub¬ stantial part of the country’s main fuel market. Today, coal is in good supply except as occasioned in special instances by transportation shortages. With pres¬ ent manpower and equipment, along with adequate transport, the bituminous coal industry can increase its output well above the current rate, which is 550 to 560 million tons annually. With its many companies spread over the nation, the bituminous coal industry is highly competitive and there are few markets where tonnage from widely sep¬ arated fields fail to meet. In addition, coal has strong competition from oil, natural gas and waterpower. Actually, coal is not one but many products represented by sizes and grades produced under widely different condi¬ tions. Because of this factor and be¬ cause of the keen competition, it has a complex market structure. If the latter is ignored under a system of ceil¬ ing price control, production and distri¬ bution will be hampered and financial difficulties will be encountered which will jeopardize the ability of the industry to supply the maximum needs of the econ¬ omy. Becau ;e of seasonal and other factors, it requires a period of approxi¬ mately one year to obtain a representa¬ tive picture of market operations. Records over the years show that the bituminous coal industry is not a pros¬ perous one and that it has been considered hazardous for investment purposes. New capital has to be derived primarily from earnings. Yet, the pro¬ gressive management in the industry has mechanized the mines to a high degree, particularly in late years, and has pro¬ vided a plant that needs a steady return for financial support. A large percent¬ age of the earnings during the better periods since World War II have been used in large amounts to promote greater plant modernization. This accounts for the very sound and strong position of the industry to produce all of the coal required by the country for its civilian and defense programs. In combatting inflation, the bitumi¬ nous coal industry generally can adopt pre-Korean price levels without financial hardship except for the impact of the wage increase negotiated during the first two weeks of January 1951, and effective February 1, 1951, and parallel wage in¬ creases in other segments of the industry. Since the industry absorbed the increased costs of the wage agreement entered into in March of 1950, the additional cost of the 1951 wage increase, without price adjustment by mines, would result in serious financial difficulties. It is esti¬ mated that the 1951 wage advance will cost, on a weighted average basis, ap¬ proximately 25 cents per ton. This ad¬ vance, of course, will vary from mine to mine. Furthermore, not only was the 1950 wage addition absorbed, but the increased costs of supplies and other items related to mining, have been ab¬ sorbed without price advances since the start of the Korean conflict. Another consideration is that the bi¬ tuminous industry, with its numerous units, has many mines operating at a return near or below costs. A price schedule established without recognition of these situations can depress produc¬ tion A cost increase such as resulting from wages, unless reflected in prices, may cause the actual closing of mines In arriving at a fair and representa¬ tive period upon which to base ceiling prices, it was obvious that the 12 months' period prior to the Korean outbreak was unrepresentative insofar as most of the bituminous coal industry is concerned. During that period there were general suspensions of operations and there were three-day week operations beyond the control of the industry during a good part of the period. In addition to these factors the 1949-50 winter was compara¬ tively warm in the major fuel consuming markets, which depressed coal sales of domestic heating coals. Excesses in the supply of residual fuel oil caused by im¬ ports from foreign fields competed with industrial coal and captured large coal markets on the Atlantic seaboard and at other points. This factor also resulted in price reductions These factors, viewed as exceptional and temporary, combined to cause serious disruptions in the marketing of bituminous coal and their effects are still noticeable today. The period July 1948 to June 1949, in¬ clusive, is considered to be the latest year that has the features of normalcy. Bituminous coal production during that year was 576 million tons, about what might be expected during the year ahead. There were no general strikes of conse¬ quence. At the same time, on the con¬ servative side, the 1948-49 winter was relatively warm, and the impact of for¬ eign oil had begun to be felt by late 1948. As stated above, there have been no wide' fluctuations since the middle of 1948. The regulation controlling ceiling prices of bituminous coal, lignite and Virginia anthracite contemplates (a) limiting the average mine realization, during 12 months’ periods under the regulation, to the average mine reali¬ zation of the base period, as adjusted, and (b) fixing ceiling prices at the high¬ est prices received during the base period or the period from January 1-15, 1951, as adjusted. The latter period permits the reflection of the more current changes in price relationships. In brief, the regulation Axes average mine reali¬ zations at a representative pre-Korean year and the ceiling prices for individual sizes or grades of coal at the highest prices received during the same year ex¬ cept for recognition of recent changes in price patterns. On the average, prices for domestic heating coals and other major grades are today at about the same level they were in the base period. Average realization obtainable under this order will not exceed the average realization that could be obtained under the General Ceiling Price Regulation. 81 Trans 31:2 To the realization levels and celling prices so established, the regulation per¬ mits the addition of the increased costs under the 1951 wage agreement. In arriving at a fair and representa¬ tive base period for the industry, it was determined that conditions affecting the bituminous coal industry west of the Mississippi River required a different base period. This segment of the in¬ dustry produces less than 10 percent of the national output. In that part of the country the Industry was affected less by strikes and the three-day week than was the industry east of the Mississippi. Furthermore, the western fields were af¬ fected less by competition with foreign oil. The winters in the west were more normal and enhapced the marketing and realization of domestic sizes. Therefore, the realization levels have increased since 1948 but have not shown an increase since June of 1950. Therefore, the regulation as applicable to the bituminous coal industry west of the Mississippi River and Alaska will use (a) a period March to December 1950. inclusive, as a base period, and (b that period and January 1-15, 1951, inclusive, will be used from which to establish ceiling prices. It is found that provi¬ sions of the regulation promote stability and efficiency. Findings of the Director of Price Sta¬ bilization. In the judgment of the Director of Price Stabilization the provi¬ sions of Ceiling Price Regulation No. 3 are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950. So far as practicable the Diractor of Price Stabilization gave due consider¬ ation to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24. 1950, Inclusive; and to relevant fac¬ tors of general applicability. In formulating this regulation the Di¬ rector has consulted with representa¬ tives of the Industry to the extent practicable under the circumstances, and has glvan consideration to their recommendations. Sec. 1. Applicability of regulation. 2. Definitions. 3. Prohibition against selling, delivering or otherwise disposing of coal at prices above the celling. 4. Celling prices and celling v elghted aver¬ age realization. 5. Long-term contracts. 8. Procedure for establishing ceilings on new product*. 7. Less than celling prices. 8. Evasion. 0. Reporting, Invoicing and record-keeping requirements. 10. Sales agents and distributors. 11. Petition* for amendment*. 13. Adjustable pricing. 13. Taxes. 14. Enforcement. Authositt : Section* 1 to 14 issued under sec. 704. Public Law 774, 81st Cong - Interpret or apply Title IV. Public Law 774. 81st Cong., E. O. 10181, Sept. 9, 1950. 15 F. R. 6105. Section 1. Applicability of regulation. This regulation establishes celling prices and ceilings on weighted average reali¬ zation for coal, except Pennsylvania an¬ thracite, produced and sold at a mine or preparation plant in the 48 States of the United States, the District of Colum¬ bia, and the territories and possessions of the United States. It is applicable to all sales or deliveries of coal f. o. b mine. Sec. 2. Definitions. When used in this regulation, the term: (a> “Person" includes an individual, corporation, partnership, association, or any other organized group of persons, or legal successor or representative of any of the foregoing, and includes the United States or any agency thereof, or any other government, or any of its political subdivisions, or any agency of any of the foregoing; (b) “Producer” means a person en¬ gaged in the business of mining or pre¬ paring coal at a preparation plant which is an adjunct of a mine or mines, and any person acting as an agent of a pro¬ ducer in the sale of coal; (c) “Distributor” means a person who purchases coal for resale, and resells the same in not less than cargo or railroad carload lots, or the equivalent thereof, and any person acting as an agent of such distributor in the sale of coal; (d) “Sales agent" is a person who. as agent of a producer, sells coal produced by such producer for him or on his behalf; (e) “Coal” means: (1) Bituminous coal, including all bituminous, semi- bituminous and sub-bituminous coal; (2) lignite (which is defined as a coal having calorific value in British thermal units of less than seven thousand six hundred per pound and having a natural moisture content in place at the mine of 30 per centum or more); and (3) Virginia anthracite coal. (f) “Bunker fuel" means coal Used aboard a vessel for consumption thereon; (g) “Ton" means a short or net ton of 2,000 pounds; (h) “F. o. b. mine” means free, on board transportation facilities at a mine, a preparation plant operating as an ad¬ junct of a mine or mines, or other load¬ ing facilities; (i) “Base period" means: (1) For all coal produced east of the Mississippi River, the base period shall be July 1, 1948, to June 30, 1949, inclusive; (2) for all coal produced west of the Mississippi River and Alaska, the base period shall be March 1, 1950, to December 31, 1950, inclusive; (j) “Realization” is the gross amount of money or value received or debited to the account of the producer in the sale of coal and shall include the total price charged by the producer (including com¬ missions to sales agents and discounts to distributors); (k) “Open market sales" shall Include coal sold, delivered or otherwise disposed of by rail, truck, barge or other method of transportation pursuant to an arms- length transaction and shall not include coal used to produce coal, sales to em¬ ployees of the producer, coal used by the producer, and controlled sales. “Con¬ trolled Sales” means sales for consump¬ tion by the buyer (1) where the relation¬ ship between producer and buyer is that of a wholly-owned or controlled subsid¬ iary and parent corporation, or (2) where there is common ownership or control of the producer and buyer in a third party, or (3) where the relation between producer and buyer for any sim¬ ilar reason is such that the sale is non-competitive, and is generally termed “captive” sales. (1) "Ceiling price” means the highest price applicable to a particular size or grade of coal determined in accordance with the provisions of this regulation. Such ceiling price shall include commis¬ sions to sales agents and discounts to distributors, and shall be an f. o. b. mine price. Sec. 3. Prohibition against selling, de¬ livering or otherwise disposing of coal at prices abovt the ceiling. On and after the 1st day of February 1951, regardless of any contract, agreement, lease or other obligation: (a) No person who is a producer or distributor shall sell, dispose, deliver or ship coal from a mine or preparation plant operating as an adjunct of a mine or mines or from mine loading facilities, at prices higher, f. o. b. the mine, than the celling prices determined in accord¬ ance with the provisions of this regula¬ tion. (b) No person shall, in the course of trade or business, buy or receive such coal so delivered or shipped at prices higher than the ceiling prices deter¬ mined in accordance with the provisions of this regulation. Any person who buys or receives coal subject to the provisions of this regulation may rely in good faith on a certified statement furnished by the seller that the prices charged do not ex¬ ceed the ceiling prices so established. (c) No person shall agree, offer, solicit, or attempt to do anything prohibited in paragraphs (a) and (b) of this section. Sec. 4 Ceiling prices and ceiling weighted average realization, (a) The ceiling prices for each mine or group of mines, for any size or grade of coal, as established by previous marketing prac¬ tices. which may be charged under this regulation shall be the highest prices received for coal in the same sizes or grades in the base period or in the period January 1-15, inclusive, 1951. The pro¬ ducer shall file a certified statement of these ceiling prices, to include such ceil¬ ing prices as are derived frjm distrib¬ utors* sales, with the Director and with the regional office or offices of the Office of Price Stabilization in the area or areas where the producer's coal is shipped, within 10 days after such prices become effective, on a form prescribed and in ac¬ cordance with instructions issued by the Director, as provided in section 7 of this regulation. (b) On and after February 1, 1951, the prices charged for the coal produced at any mine or group of mines shall be such that the weighted average realiza¬ tion per ton by the producer for the 12- month period commencing February 1, 1951. and ending January 31, 1952, and for each 12-month period beginning on the first day of each succeeding month, commencing March 1, 1951, shall not ex¬ ceed the weighted average realization obtained by the producer from the sale, delivery or other disposal of coal during the base period. 81 Trans 31:3 (c) The producer shall determine his ceiling weighted average realization for the base period for any such mine or | group of mines by dividing the realiza¬ tion received from sales of coal on the open market by the number of tons so sold. The producer shall file a certified statement of the ceiling weighted aver¬ age realization so determined with the Director, as required by section 8 (a) of this regulation. (d) The ceiling prices and Ceiling weighted average realization determined for a mine or mines in accordance with the provisions of this regulation may be increased by the amount of the increase in cost resulting from wage and salary advances and other items related to the payroll: Provided, That such increases became effective on or after January 1, 1951, and prior to July 1, 1951, and that such increases satisfy the policy and re¬ quirements of the Wage Stabilization Board of the Economic Stabilization Agency. (e) The highest price referred to in paragraph (a) of this section shall be separately determined by the producer in accordance with such classification, whether by size, grade or other grouping or designation as established by previous marketing practices. (f) The ceiling prices to be determined in paragraph (a) of this section and the ceiling weighted average realization to be determined under paragraph (b) of this section may, at tht option of the producer, be determined and established for a group of mines (as distinguished | from a particular mine), where such mines are operated or controlled by a single person, and where such mines produce similar and interchangeable coals: And provided, furtherThat such groupings have been the usual custom and practice in the marketing of such coals. Sec. 5. Long-term contracts, (a) A producer who sells and delivers coal un¬ der a bona fide long-term written con¬ tract of three years or longer, entered into prior to July 1, 1948, may, at his option, exclude such tonnage in deter¬ mining the ceiling weighted average realization under section 4 (c) of this regulation and must exclude such ton¬ nage in determining ceiling prices under section 4 (a) of this regulation. In such event, the realization obtained from coal sold under such contract during the life of this regulation may not be included in computing realization under section 4 (b) of this regulation. Such tonnage and realization shall be reported sepa¬ rately on forms prescribed and in ac¬ cordance with instructions issued by the Director. (b) Coal sold and delivered under the terms and conditions of all such con¬ tracts, whether excluded or not. may continue to be sold and delivered in ac¬ cordance with the terms and conditions, including pricing provisions, of such contracts. | Sec. 6. Procedure for establishing ceilings on new products, (a) In the event the weighted average realization for a mine or group of mines as deter¬ mined in accordance with the foregoing provisions is less than the representative cost of production at such mine or mines the producer may file a petition asking for such adjustment in his ceiling prices or realization as will not require the mine or group of mines to operate at a loss. (b) In the event a mine or group of mines were not in operation during all or part of the base period, or in the event all or a portion of a mine or group of mines’ production as presently produced has been affected by unusual circum¬ stances or is of a special or enhanced quality due to the installation of prep¬ aration or other facilities during or since the base period, such producer may file a petition seeking the establishment of ceiling prices and a ceiling weighted av¬ erage realization that are fair and equitable. The producer shall state the name of the mine, if any, the name or number of the seam, the county and the state in which the mine is located, the type of operation whether underground or strip; and in addition shall furnish the same information for the nearest mine or mines in the same seam and producing coal similarly processed, and the applicable ceiling prices for such mine. If there is no such mine in the same seam, the producer shall furnish the same comparative information for the nearest mine in a substantially simi¬ lar seam. For 30 days after filing the application, such coals of the applicant shall be sold at temporary ceiling prices no higher than the ceiling prices established under this regulation for the coals which are produced at the nearest mine or mines in the same seam or in a substantially similar seam and similarly processed. After 30 days from the filing of the ap¬ plication, if no action has been taken by the Director, the prices as requested in the application shall be the ceiling prices for such coals. (c) If a particular size of coal was not made or sold during the base period or during the period January 1-15, in¬ clusive, 1951, and therefore no specific ceiling price is established therefor, the ceiling price for such size shall be de¬ termined as follows: (d) (1) If the particular unpriced size is a lump size, the ceiling price shall be not more than the lowest ceiling price established for any size of lump coal for the same mine. (2) If the particular unpriced size is a double-screened coal, the ceiling price shall be not more than the lowest ceiling price established for any double-screened size of the same mine. (3) If the particular unpriced size is a resultant (slack or screening) size, the ceiling price shall be not more than the lowest ceiling price for any resultant (slack or screening) size of the same mine. (e) In the event of the mixture of two or more sizes or classifications of coal to which different ceiling prices are appli¬ cable, which mixture was not made dur¬ ing the base period or the period January 1-15,1951. the ceiling price for such mix¬ ture shall not be more than the weighted average of the ceiling prices for each of the component sizes or classifications of coal in said mixture, on a per net ton basis. (f) It is the intent and purpose of this section and this regulation that no mine or group of mines shall obtain an average realization for any consecutive 12-month period beginning February 1, 1951, which exceeds the weighted aver¬ age realization during the base period as adjusted. (g) Where bituminous coal is de¬ livered from a mine or preparation plant in any transportation facilities owned or subject to the control of the producer or subsidiary or affiliate of the producer, or in any transportation facilitias hired by the producer, there may be added to the applicable ceiling prices established herein a sum not in excess of the highest charge for transportation costs made during the base period or the period January 1-15, 1951, inclusive, but in no event to exceed the lowest common car¬ rier rate for a haul between the same points; provided that there may also be added by a producer, to the applicable ceiling price established herein, an amount not in excess of the transporta¬ tion tax imposed by section 620 of the Revenue Act of 1942 if said producer in¬ curred such tax and if he separately states the amount of the tax in sales to all purchasers except the United States or any agency thereof, the District of Columbia, any state •government or any political subdivision thereof. (h) The rate of interest on overdue accounts or on a note, trade acceptance or other form of indebtedness accepted in payment of an account shall not ex¬ ceed the rate charged by the seller on similar transactions during the base period. (i) Any purchaser, lessee or transferee of a mine for which ceiling prices and a ceiling weighted average realization have been established shall take the ceiling prices or ceiling weighted average reali¬ zation previously assigned to the mine or other seller, lessor, or transferor thereof. Sec. 7. Less than ceiling prices. Lower prices than those established under this regulation may be charged, demanded, paid or offered. Sec. 8. Evasion. The price limitations set forth in this regulation shall not be evaded, whether by direct or indirect methods, in connection with an offer, so¬ licitation,. agreement, sale, delivery, purchase or receipt of or relating to bi¬ tuminous coal alone or in conjunction with any other commodity or by way of commission, service, transportation, or other charge, or discount, premium or other privilege, or by tie-in agreement or other trade understanding, or by the making of excessive charges for trucking or otherwise. Persons subject to the reg¬ ulation shall continue to observe their customary and standard cash discount practices. Sec. 9. Reporting, invoicing and rec¬ ord-keeping requirements. (a) Each producer shall compute and establish its weighted average realization during the base period and shall report such reali¬ zation base to the Director within 10 days after the date ceiling prices become effective under this regulation. The re¬ port shall be made on forms prescribed and according to instructions issued by the Administrator. (b) The basis for setting up ceiling prices on particular sizes and grades of bituminous coal shall be submitted to the Director on forms provided by him in LI BRaky UNIVERSITY nr II. 81 Trans 31:4 accordance with his instructions within ten days after this regulation becomes effective <c' Ceiling price schedules shall be filed by the producer, sales agent or dis¬ tributor with the Director and with the regional office or offices of the Agency in the area or areas where the producer's coal is shipped, within ten days after the day such prices become effective. Copies of such price schedules shall be open for public inspection. All changes in ceiling prices shall be similarly filed, <d> Each producer shall report monthly its monthly realization to the Director on forms provided by him and in accordance with his instructions on or before the twentieth day of the month following the month for which the re¬ port is being filed. <e> Each person subject to this regu¬ lation shall keep on file invoices and other sales data of the base periods ap¬ plicable to average realizations and ceil¬ ing prices. Each person subject to this regulation shall furnish to each person to whom he sells'bituminous coal an in¬ voice stating the ceiling price established by this part separately from any other charge or a certified statement that the prices charged do not exceed the ceiling prices established under this regulation. (f) Each person subject to this regu¬ lation shall preserve and keep available for inspection by the Director for a pe¬ riod of two years, all records necessary to substantiate ceiling prices, base pe¬ riod realization and average realization established pursuant to this regulation. < g ) The producer shall furnish to each retail coal dealer to whom he sells coal a statement showing the exact dollar- and-cents amount the producer has added to the price of his coal as author¬ ized under this regulation. Sec. 10 Sales agents and distributors. No sales agent or distributor shall charge a price f. o b. mine, preparation plant operated as an adjunct of a mine or mines, or from mine loading facilities in excess of the ceiling price or prices established for such mine or mines unde” the provisions of this regulation: Pro¬ vided, That in the event a distributor purchased coal from a mine or mines during the producer's base period or the period January 1-15, 1951, and resold such coal, said distributor may buy and resell coal from said mine or mines and charge the highest price or prices he re¬ ceived for each size or grade of coal dur¬ ing the aforesaid periods plus any ad¬ justments in price applied to the f. o. b. mine price of such coal: Provided, fur¬ ther, That the distributor files with the Director such reports or records as may be required on forms prescribed and ac¬ cording to instructions issued by the Di¬ rector The distributor shall preserve his records to support such reports for a period of two years. Sec 11. Petitions for amendmenis. Any person seeking an amendment of any provision of this regulation may file a petition for amendment in accordance with Price Procedural Regulation 1 is¬ sued by the Economic Stabilization Ad¬ ministrator. Sec. 12 Adjustable pricing. Any per¬ son may agree to sell at a price which can be increased up to the ceiling price in effect at the time of delivery; but no person may. unless authorized by the Office of Price Stabilization, deliver or agree to deliver at prices to be adjusted upward in accordance with action taken by the Director after delivery. Such au¬ thorization may be given when a request for a change in the applicable ceiling price is pending, but only if the authori¬ zation is necessary to promote distribu¬ tion or production and if it will not interfere with the purposes of the De¬ fense Production Act of 1950. The au¬ thorization may be given by the Director or by any official of the Office of’ Price Stabilization to whom the authority to grant such authorization has been dele¬ gated. The authorization will be given by order, except that it may be given by letter or telegram when the contem¬ plated revision will be the granting of an individual application for adjustment. Sec. 13. Taxes. There may be added to the applicable ceiling price the amount of any sales, gross receipts, gross proceeds or use tax levied by any statute or ordinance, under which the tax is measured by gross proceeds or units of sale, only if the statute or ordi¬ nance permits or requires the seller to state the tax separately and the seller does state it separately on his invoice or other memorandum of sale, and only if the seller customarily added the amount of such tax to the ceiling price and sep¬ arately stated the tax on his invoices prior to January 15, 1951. Sec. 14. Enforcement. Persons violat¬ ing any provision of this regulation are subject to the criminal penalties, and enforcement actions, and suits for dam¬ age provided for by the Defense Produc¬ tion Act of 1950. Effective date This regulation shall become effective on the 1st day of Febru¬ ary 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. FILE following 81 Trans 31:4 (5-4-51) 81 Trans 31:5 Miscellaneous Amendments Ceiling Price Regulation 3 AMENDMENT 1 APRIL 30, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 3, Amendment 1] CPR 3—Coal, Except Pennsylvania Anthracite, Delivered From Mine or Preparation Plant MISCELLANEOUS AMENDMENTS Pursuant to the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization General Order No. 2 (16 F. R. 738), this Amend¬ ment 1 to Ceiling Price Regulation 3 (16 F. R. 1008), is hereby issued. STATEMENT OF CONSIDERATIONS The amendments to Ceiling Price Reg¬ ulation 3 contained in this document are intended to clarify and strengthen cer¬ tain provisions of the original regulation and to permit the acceptance of pre¬ miums on coal sold under premium-and- penalty contracts. A paragraph (d) is added to section 3 to permit producers and distributors to receive compensation over ceiling prices in accordance with premium-and-pen- alty contracts. The additional compen¬ sation must be included in the realiza¬ tion reported under the regulation, how¬ ever. The original regulation did not con¬ tain specific provisions outlining a meth¬ od under which a producer who pur¬ chases coal from other producers and sells it as a mixed product may deter¬ mine his cost increase under section 4 (d) of CPR 3. The amendment sets forth a formula which provides that such producer shall include the cost increase of all the coal, if any, he produces from his own mines and of purchased coal. Section 6 (b) has been amended to clarify and strengthen the procedure the Director may follow in considering such applications and requesting additional information needed to arrive at a de¬ cision. Section 6 (g> has been amended to refer to coal, as defined in the regula¬ tion, and to authorize distributors to add transportation charges to the ceiling prices of coal. The latter change puts them on an equal footing with the pro¬ ducers and brings this section in line with a similar section in the CPR 4, An¬ thracite Delivered from Mine or Prepa¬ ration Plant. The references to trans¬ portation charges in the base period and I January 1 to 15, 1951, are deleted to bring this paragraph in line with the CPR 4 and to relieve an inequitable sit¬ uation which developed from an inad¬ vertent inclusion of the references now being removed. Section 9 has been amended to require filing of the monthly reports of realiza¬ tion on the last day of the month follow¬ ing the month for which the report is made, instead of the 20th day of such month. Many producers in the industry reported that because of the additional statistical load related to the defense program they are unable to make this report earlier than the last day of the month. AMENDATORY PROVISIONS Ceiling Price Regulation 3 is hereby amended as follows: 1. Section 2 (b) “Producer,” is amend¬ ed to read as follows: (b) “Producer” means a person en¬ gaged in the business of (1) mining, (2) preparing coal at a preparation plant which is an adjunct of a mine or mines, (3) mining, stripping, and/or loading coal under contract with a producer or other person, or (4) assembling, loading or otherwise handling, and shipping coal from a ramp or other loading facility; and any person acting as an agent of a producer. 2. A new paragraph (d) is hereby added to section 3 as follows: (d) Notwithstanding any provision to the contrary, a producer or distributor may sell and deliver coal pursuant to a contract which contains a premium and penalty provision based on the spec¬ ifications of such coal, and may demand and receive compensation in an amount per ton, in addition to the ceiling price provided by said contract: Provided, however, That the basic price contained in such contract does not exceed the ceiling price established under this reg¬ ulation and in effect at the time of de¬ livery: And provided further. That the terms of such premium and penalty pro¬ vision are reasonable and are not more favorable to the producer or distributor then premium and penalty provisions contained in similar contracts of the producer or other producers or distribu¬ tor or other distributors in effect since July 1, 1948. The amount received as a premium hereunder shall be included in monthly realization reported by the pro¬ ducer. 3. Section 4 (e) is relettered 4 (f) 4. Section 4 (f) is relettered 4 (g). 5. The last clause of section 4 (a) is amended to read as follows: “as pro¬ vided in section 9 of this regulation.” 6. The Jast clause of section 4 (c) is amended to read as follows: “as required by section 9 (a) of this regulation.” 7. A new section 4 (e) is added to read as follows: (e) (1) A producer that operates a preparation plant, a ramp, or other load¬ ing facility, and that by usual custom obtains all or part of its coal from an¬ other producer or producers, may in¬ crease its ceiling prices and its ceiling weighted average realization by an amount representing a weighted aver¬ age of the increased cost, if any, of all the producer’s own coal'and purchased coal (as certified by the supplier to the producer) processed or loaded at such preparation plant, ramp or other load¬ ing facility resulting from wage and sal¬ ary advances and related payroll items which became effective on or after Jan¬ uary 1, 1951, and prior to July 1, 1951, and which satisfy the policy and re¬ quirements of the Wage Stabilization Board of the Economic Stabilization Agency: Provided, That where such cost increases on purchased coal are not available to the producer, the amount, if any, which the supplier has added to the price of the coal sold to the producer in February and March, 1951, as author¬ ized by CPR 3, may be used in comput¬ ing the weighted average adjustment applicable to the preparation plant, ramp, or other loading facility. (2) In determining the proportion of the producer’s own. coal and the coal purchased from suppliers for the purpose of computing the weighted average in¬ crease referred to in subparagraph (1) of this paragraph, the nearest period of one month or longer prior to February 1, 1951, which is representative of the fu¬ ture supply of coal for such preparation plant, ramp or other loading facility shall be used. 8. The reference to “paragraph <b)” in section 4 (f) is amended to refer to “paragraph (c)”. 9. The word “petition” in section 6 (a) is deleted and the word “application” is substituted. 10. Section 6 <b) is hereby amended to read as follows: (b) (1) In the event a mine or group of mines were not in .operation during all or part of the base period, or in the event all or a portion of a mine or group of mines’ production as presently pro¬ duced has been affected by unusual cir¬ cumstances or is of a special or en¬ hanced quality due to the installation of preparation or other facilities during or since the base period, such producer may file an application seeking the es¬ tablishment of ceiling prices and a ceil¬ ing weighted average realization that are fair and equitable. (2) The producer shall prepare its ap¬ plication in accordance with the provi¬ sions of pertinent provisions of Price Procedural Regulation 1 issued by the Economic Stabilization Agency, effective December 18, 1950 (15 F. R. 9055), in¬ cluding the requirement that the peti¬ tion be filed in duplicate, and with the pertinent provisions of this regulation. 81 Trans 31:6 In addition to other reauired informa¬ tion, the producer shall state the name of the mine or mines for which the ap¬ plication is filed, the name or number of the seam in which the mine is operat¬ ing, the county and the state in which the mine or mines are located, the type of operation (whether underground or strip), a detailed description of the man¬ ner, if any, in which the coal is pre¬ pared, cleaned or treated, and the pres¬ ent ceiling prices and ceiling weighted average realization, if any, for said mine or mines. In addition, the producer shall state the same information for the nearest mine or mines in the same seam producing coal with the same or' similar mining methods, with the same or sim¬ ilar preparation and cleaning facilities, and the applicable ceiling prices for such mine. If there was no such mine or mines in the same seam, the producer shall furnish the same comparative in¬ formation for the nearest mine having substantially similar mining methods and preparation facilities in a substan¬ tially similar seam. The Director may request any other information deemed necessary by him to a fair and reasonable determination of the issues raised in the application. (3) For 60 days after filing the appli¬ cation, such coals of the applicant shall be sold at temporary ceiling prices no higher than the ceiling prices established under this regulation for the coals which are produced at the nearest mine or mines in the same seam or in a sub¬ stantially similar seam and similarly processed. After 60 days from the filing of this application, if no action has been taken by the Director, the prices as re¬ quested in the application shall be the ceiling prices for such coals. The filing date herein shall be the date on which the application is received by the Direc¬ tor in the principal office of the Office of Price Stabilization, Washington, D. C. (4) The Director may at any time re¬ view and revise ceiling prices or ceiling weighted average realizations proposed or established under this section if they appear to be inconsistent with the pro¬ visions of this regulation. 11. Section 6 (g) is hereby amended to read as follows: (g) Where coal is delivered from a mine or preparation plant in any trans¬ portation facilities owned or subject to the control of the producer or distributor or subsidiary or affiliate of the producer or distributor, or in any transportation facilities hired by the producer or dis¬ tributor, there may be added to the ap¬ plicable ceiling prices established herein a sum not in excess of the actual trans¬ portation costs incurred by such pro¬ ducer or distributor, or subsidiary or affil¬ iate thereof, determined in a reasonable manner, but in no event to exceed the lowest common carrier rate, if any, for a haul between the same points: Provided, That there may also be added by a pro¬ ducer or distributor, to the applicable maximum price established herein, an amount not in excess of the transporta¬ tion tax imposed by section 620 of the Revenue Act of 1942 if said producer in¬ curred such tax and if he separately states the amount of the tax in sales to all purchasers except the United States or any agency thereof, the District of Columbia, any state government or any political subdivision thereof. 12. Section 9 (d) is hereby amended to read as follows: (d) Each producer shall report monthly the monthly realization to the Director on forms provided by him and in accordance with his instructions on or before the last day of the month fol¬ lowing the month for which the report is being filed. Effective date. The above amend¬ ments shall be retroactive and shall be¬ come effective as of February 1, 1951. Note. The record-keeping and reporting requirements of this supplementary regula¬ tion have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. April 30, 1950. FILE following 81 Trans 31:6 (11-19-52) 81 Trans 31:7 Miscellpneous Amendments^ (Adding Sec. 2(m), 4(d)(2) amending Sec. 6(g) and(i), Sec. 9(a), (c), (d), and (f)). OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 3 Amendment 2 NOVEMBER 14. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 3, Amdt. 2] CPR 3—Coal. Except Pennsylvania An¬ thracite, Delivered From Mine or Preparation Plant MISCELLANEOUS AMENDMENTS Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161 and Economic Stabilization Agen¬ cy General Order No. 2, this Amendment 2 to Ceiling Price Regulation 3 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 3 provides certain adjustments in ceiling prices and ceiling weighted aver¬ age realization on all coal, except Penn¬ sylvania anthracite, delivered from mines or preparation plants; revises the provision with respect to charges for transportation of coal in facilities owned or controlled by the producer; provides a certification procedure implementing Section 411 of the Defense Production Act of 1950, as amended; and makes cer¬ tain changes in the reporting and record¬ keeping provisions of the regulation. On or about the first of October 1952 the United Mine Workers of America and representatives of various segments of the bituminous coal producing indus¬ try agreed upon a new contract contain¬ ing increases in rates and in payments to the Welfare and Retirement Fund. The Progressive Mine Workers Union also entered into an agreement with an¬ other segment of producers on a similar contract. These contracts cover about 80 percent of the National production of bituminous coal and provide for an increase in the daily basic pay of $1.90 and of 10 cents per ton in the operator payments to the Welfare and Retirement Fund. Several of the operator groups there¬ after submitted the new contracts to the Wage Stabilization Board for con¬ sideration and action. On October 18, 1952, the Board approved an increase of $1.50 a day (instead of the $1.90 re¬ quested) for miners employed by the member companies of the Bituminous Coal Operators Association. In its opin¬ ion the Board stated that specific ap¬ proval of the royalty payment is not required. On October 22,1952, the Board authorized an extension of the $1.50 in¬ crease to other employees who were not covered by the specific wage agreement submitted to the Board, but who in the past had customarily received wage in¬ creases similar to the increases granted to employees covered by the National Bituminous Wage Agreement. The au¬ thorized wage increases were approved to become effective on October 1, 1952. The Bituminous Coal Operators As¬ sociation and the United Mine Workers of America have filed a request for re¬ view with the Administrator of the Eco¬ nomic Stabilization Agency, specifically asking that the additional 40-cent in¬ crease in the basic daily pay be approved. This request for review is now being considered by the Administrator. It appears, as a result of the wage rate adjustment of $1.50 per day and the increase in the Welfare Fund payments of 10 cents per ton, that an industry¬ wide weighted average cost increase of approximately 33-35 cents per net ton will be incurred by the mine operators. If the full increase of $1.90 per day is approved, the industry-wide weighted average cost increase will be approxi¬ mately 39-42 cents per net ton. These cost increases will, of course, vary widely from mine to mine. Despite the present softness in the general price level of bituminous coal sold at the mines there are various mines whose prices on certain sizes and grades of coal are at or near ceilings and whose current weighted average realizations are near their ceiling weighted average realizations. Data available to the Agency indicate that in the year 1951 this industry was actually earning about 18 V2 cents less than the minimum earn¬ ings permitted by the Industry Earnings Standard. To the extent that selling prices on most sizes and grades are low and that selling prices on some sizes and grades are at or near ceilings, the indus¬ try will be unable under existing condi¬ tions to earn the minimum under the Earnings Standard unless some adjust¬ ments are made to take care of the wage increases referred to above. By this amendment ceiling prices may be increased by the actual per net ton amount of increased costs incurred. The ceiling weighted average realization control is retained at present levels ex¬ cept that a limited adjustment is per¬ mitted to any mine which is now at or near the ceiling weighted average reali¬ zation, and which mine could not in¬ crease its ceiling prices without piercing its ceiling weighted average realization established under the regulation. Pro¬ ducers may calculate such cost increases on a new form provided by OPS (which is substantially similar to Solid Fuels Form No. 2 used for a somewhat similar purpose in 1951) and such cost increases so calculated should be added to the cu¬ mulative average realization for the 12- month pferiod ending September 30. 1952. If the sum of such cost increases and the cumulative weighted average realiza¬ tion exceeds the present ceiling weighted average realization, such sum will consti¬ tute the new ceiling weighted average realization for that particular mine. (If this computation yields an amount less than the present ceiling weighted aver age realization no adjustment is per¬ mitted in the ceiling weighted average realization.) The allowable adjustment in the ceiling weighted average realiza¬ tion as provided by the regulation, how¬ ever, must be apportioned so that only 10 percent of the increase may be added in the first month and 10 percent addi¬ tional may be added in each successive month until the full amount of the ad¬ justment has been added. Such appor¬ tionment applies to the ceiling weighted average realization only and, except as limited by the ceiling weighted average realization, a producer may add the full amount of the authorized wage increase to his ceiling prices. The new ceiling prices and ceiling weighted average realization provided by this amendment may be put into effect as of the date the authorized increased costs become effective, except that as to sales to retail dealers, the effective date of ceiling prices shall be November 14, 1952. It is believed that the adjustments provided by this amendment will not result in any substantial increase in industry-wide price levels but will per¬ mit individual producers to obtain any relief to which they are entitled, with¬ out imposing a heavy administrative bur¬ den on this office. This amendment also implements sec¬ tion 411 of the Defense Production Act of 1950, as amended, by providing for a certification procedure adapted to re¬ alization and ceiling price controls which are provided by this regulation. Section 411 of the Defense Production Act of 1950, as amended, provides that no per¬ son shall be required to furnish any reports or other information with re¬ spect to sales of materials or services at prices which are below ceiling, if such person certifies to the President that such sales are made at such prices. Be¬ cause CPR 3 has a ceiling weighted average realization control in addition to ceiling price control, a producer to be exempt from the filing requirements of section 9 (d), must certify that he is selling all of his coal below ceiling prices and that the cumulative weighted av¬ erage realization is below the established ceiling weighted average realization for his mine or mines. A producer after so certifying must file OPS Public Form No. 1 for any month or months in which he sells any size or grade of coal at ceil¬ ing prices, or for any month or months in which the cumulative weighted av¬ erage realization equals the established ceiling weighted average realization for his mine or mines. This certification procedure does not apply to reports re¬ quired in connection with the establish¬ ment or adjustment of ceiling prices or ceiling weighted average realization. Section 6 (g) is amended to permit a producer who owns, controls, or hires 81 Trans 31:8 transportation facilities to add to his ap¬ plicable celling prices, f. o. b. mine, a sum not in excess of the highest charge for transportation costs between the same points made during the base period or the period January 1-15, 1951, inclusive. This provision was originally contained in the regulation but was subsequently deleted by Amendment 1 to CPR 3 when provision was made to allow the producer who owns his transportation facilities to add his actual transportation costs to his f. o. b, mine ceiling prices. Since then, the agency has been advised that many producers who own or control transportation facilities are unable to ascertain their actual transportation costs. Those producers use transporta¬ tion facilities for other purposes, and cannot properly allocate costs to the de¬ livery of coal. During the base period it was customary for them to make a uni¬ form charge for such delivery. Accord¬ ingly, this amendment makes available both methods. The other provisions of section 6 (g), including the provision that the amount shall not exceed the lowest carrier rate, are retained. In section 6 (i) a correction is made by substituting the word “and” for the word “or" in connection with ceiling prices and ceiling weighted average real¬ ization. This was a clerical error in the original draft. A new provision is in¬ cluded requiring notification, by a new owner, of any change in ownership of a mine, and requiring the transferor to preserve or turn over to the transferee all records of transaction prior to the trans¬ fer which are necessary to enable the transferee to comply with the record provisions of the regulation. Section 9 (a) is amended to provide for the reporting by producers (other than “small mine" producers) of in¬ creased costs and the increase author¬ ized in the ceiling weighted average re¬ alization on OPS Public Form No. 155, which must be filed within 20 days after the increased costs become effective or within 20 days after the date of issuance of this amendment whichever is later. A new sentence is added to section 9 (d) which provides that ceiling prices determined under section 4 (d) (2) of this amendment shall not be required to be filed. This amendment, however, relieves “small mine” producers of the require¬ ment that they file OPS Public Form No. 155 and a revised schedule of ceiling prices under the provisions of section 4 (d) and section 9 (a) and (c), as amend¬ ed. Under section 2 (m), as amended, a mine (or group of mines referred to in section 4 (g)) is a “small mine” for any calendar year if, during the preceding calendar year, its entire production aver¬ aged 100 net tons or less of coal per day of operation, regardless of method of shipment. It is believed that the “small mine” producers should not be required to file these reports because of the ad¬ ministrative burden such filings would impose on OPS and the “small mine” producers; and because of the general agency policy to relieve small business of filing to the extent possible. If a “small mine” producer wishes to claim an ad¬ justment in ceiling prices and ceiling weighted average realization, however, he shall determine the amount of adjust¬ ment by use of OPS Public Form No. 155 and keep it on file with other records re¬ quired by section 9 to be retained by the producer. Section 9 (f) is amended to require the producers to prepare and keep available, for a period of two years, records of the kind they customarily keep showing the prices charged for the coal. In the judgment of the Director of Price Stabilization the provisions of this amendment are generally fair and equi¬ table and are necessary to effectuate the purposes of Title IV of the Defense Pro¬ duction Act of 1950, as amended. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, as amended, and to relevant factors of general applicability. In the formulation of this amendment there has been consultation with indus-' try representatives, including trade asso¬ ciation representatives, to the extent practicable, and consideration has been given to their recommendations. AMENDATORY PROVISIONS Ceiling Price Regulation 3, as amended, is further amended as follows: 1. Section 2 is amended by adding a new paragraph (m) as follows: (m) A mine (or group of mines re¬ ferred to in section 4 (g)) is a “small mine” for any calendar year if during the preceding calendar year its entire production averaged 100 net tons or less of coal per day of operation, regardless of method of shipment. 2. Section 4 (d) is amended by redes¬ ignating that section as 4 (d) (1) and adding two new subparagraphs as fol¬ lows: (2) Each producer who incurs in¬ creases in costs at his mine or group of mines during the period October 1, 1952 to April 30, 1953, inclusive, by reason of a wage and salary advance and other items related to the payroll and welfare payments (as calculated by such pro¬ ducer on OPS Public Form No. 155) which satisfy the policy and require¬ ments of the Wage Stabilization Board of the Economic Stabilization Agency, may determine his ceiling prices and ceiling weighted average realization for such mine or group of mines as follows: (i) Ceiling prices. Add to the indi¬ vidual ceiling prices established by other provisions of this regulation for each size and grade of coal the amount of such increased costs. (ii) Ceiling weighted average realiza¬ tion. Add to the cumulative weighted average realization for the 12-month period ending September 30, 1952 (as shown on OPS Public Form No. 1 for September 1952), the amount of such in¬ creased costs: Provided, however, That the allowable adjustment in the ceiling weighted average realization provided in this subparagraph (i. e., the difference between the previously established ceil¬ ing weighted average realization and the cumulative weighted average realiza¬ tion as adjusted for the increased costs) must be apportioned so that 10 percent of the increase in the ceiling weighted average realization may be added in the first month, and an additional 10 per¬ cent in each succeeding month until the full amount of the allowable adjustment has been made. Where the cumulative weighted average realization, as adjusted for the increased costs, is equal to or less than the ceiling weighted average reali¬ zation otherwise established by this reg¬ ulation, the previously established ceil¬ ing weighted average realization will continue in effect. Example. A mine incurs increases of 40 cents per net ton from wage and salary ad¬ vances and other items related to the pay¬ roll and welfare payments as of October 1, 1952, which satisfy the policy and require¬ ments of the Wage Stabilization Board. This producer’s celling weighted average realization is $5.06 per net ton, but his 12- month cumulative realization as shown on OPS Public Form No. 1 for the 12-month period ending September 30, 1952, is $4.75. The addition of the 40 cents increase to the cumulative weighted average realization of $4.75 results in a target realization of $5.15, Subtracting $5.00 (the previously established ceiling weighted average realization) from $5.15, leaves 15 cents which is the author¬ ized increase in the ceiling weighted average realization. He can add 10 percent of the 15-cent Increase in ceiling weighted average realization in October 1952, 20 percent of the increase in November 1952, etc., until the total of 15 cents per net ton is reached. Thus, he may not exceed $5.0150 in October; $5.0300 in November, etc. (If his mine's cost increase is 25 cents or less per ton, his ceiling weighted average realization, under the above facts, would remain at $5.00 per net ton.) OPS Public Form No. 155 showing the increased costs and the increase author¬ ized in the ceiling weighted average reali¬ zation shall be filed by producers, other than “small mine” producers, as defined in section 2 (m), in accordance with the provisions of section 9 (a) (2) of this regulation. The new ceiling prices and ceiling weighted average realization provided in this subparagraph may be put into effect as of the date the authorized increased costs become effective, except that as to sales to retail coal dealers, the effective date of ceiling prices shall be November 14, 1952. (3) A producer who operates a prepa¬ ration plant, a ramp or other loading facility, and who by usual custom ob¬ tains all or part of his coal from another producer or producers, shall determine his increased costs under subparagraph 2 of this section by calculating the weighted average increased cost of his own coal and purchased coal which re¬ sults from the cost increases referred to in subparagraph 2. 3. Section 6 (g) is amended to read as follows: (g) Where bituminous coal is delivered from a mine or preparation plant in any transportation facilities owned or sub¬ ject to the control of the producer or subsidiary or affiliate of the producer, or in any transportation facilities hired by 81 Trans 31:9 the producer, there may be added to the applicable ceiling price established herein, a sum not in excess of (1) the highest charge, for transportation costs between the same points made during the base period or the period January 1-15, 1951, inclusive, or (2) the actual transportation costs incurred by such producer or distributor, or subsidiary or affiliate thereof, determined in a reason¬ able manner; .but in no event shall such highest charge or actual transportation costs exceed the lowest common carrier rate, if any, for a haul between the same points: Provided. That there may also be added by a producer or distributor, an amount not in excess of the transporta¬ tion tax imposed by section 620 of the Revenue Act of 1942, if said producer incurred such tax and if he separately states the amount of the tax in sales to all purchasers except the United States or any agency thereof, the District of Columbia, any state government or any political subdivision thereof. 4. Section 6 (i) is amended to read as follows: (1) Any purchaser, lessee or transferee of a mine for which ceiling prices and a ceiling weighted average realization have been established, shall take the ceiling prices and ceiling weighted average realization previously assigned to the mine or other seller, lessor or transferor thereof. Immediately upon the trans¬ fer of a mine the purchaser, lessee or transferee shall notify in writing by reg¬ istered mail, the Solid Fuels Branch, Rubber, Chemicals, Drugs and Fuels Division, Office of Price Stabilization, Washington 25, D. C., stating the date of such transfer and the name and address of the purchaser, lessee or transferee. The transferor shall either preserve and make available, or turn over to the trans¬ feree, all records of transactions prior to the transfer which are necessary to en¬ able the transferee to comply with the record provisions of this regulation. 5. Section 9 (a) is amended by re¬ designating paragraph (a) as (a) (1) and adding a new subparagraph as follows: (2) OPS Public Form No. 155 showing the increased costs and the increase in the ceiling weighted average realization authorized by section 4 (d) (2), shall be filed by producers, other than “small mine” producers, within 20 days after the increased costs become effective, or within 20 days after the issuance of this amendment, whichever is later. TTiis form shall be sent by registered mail, re¬ turn receipt requested, to the Solid Fuels Branch, Rubber, Chemicals, Drugs and Fuels Division, Office of Price Stabiliza¬ tion, Washington 25, D. C. Although a “small mine” producer need not file OPS Public Form No. 155, he must calculate his adjustment under section 4 (d) (2) on this form and keep it on file in accord¬ ance with the provisions of section 9 (f) of this regulation. Copies of OPS Pub¬ lic Form No. 155 may be obtained by writing to the Solid Fuels Branch, Rub¬ ber, Chemicals, Drugs and Fuels Divi¬ sion, Office of Price Stabilization, Wash¬ ington 25, D. C. 6. Section 9 (c) is amended to read as follows: (c) Ceiling price schedules shall be filed by the producer, sales agent or dis¬ tributor with the Director and with the regional office or offices of the Agency in the area or areas where the producer’s coal is shipped, within ten days after the day such prices become effective. Copies of such price schedules shall be open for public inspection. All changes in ceiling prices shall be similarly filed, except that ceiling prices determined under section 4 (d) (2) shall not be filed. 7. Section 9 (d) is amended to read as follows: (d) Each producer shall report each month the monthly realization to the Director, on or before the last day of the month following the month for which the report is filed, on OPS Public Form No. 1 and in accordance with instruc¬ tions issued by the Office of Price Sta¬ bilization: Provided, That no producer shall be required to file reports under this paragraph if he files a certified statement that he is now selling all of his coal at prices below the ceiling prices established' by this regulation and that his cumulative weighted average realiza¬ tion is now below the ceiling weighted average realization established for his mine or group of mines. If in any month or months after such certification the producer makes a sale of any size or grade of coal at a price equal to the ceiling price established for that size or grade, or in any month or months in which the cumulative weighted average realization equals the ceiling weighted average realization established for his mine or group of mines, he must file the report required by this paragraph for such month or months. Certification must be in the following form: Certification of Sales Below Ceiling Prices and Ceiling Weighted Average Realization as Provided in Section 9 (d) or CPR 3, as Amended It Is hereby certified that_____ (Name of producer) Is selling all coal from the_..._ (Name of mine or group of mines) at prices below the celling prices established by this regulation and that the cumulative weighted average realization for this mine (or group of mines) Is now below the cell¬ ing weighted average realization established for such mine (or group of mines). (Name of producer) (Address of producer) (Signature of authorized person) (Title or position of signer) Date:_ This statement must be addressed to the Solid Fuels Branch, Rubber, Chemicals, Drugs and Fuels Division, Office of Price Stabilization, Washington 25, D. C., and must be sent by registered mall, return receipt requested. The certification procedure does not apply to reports required in connection with the establishment or adjustment of ceiling prices or ceiling weighted aver¬ age realization. 8. Section 9 (f) is amended Dy adding a new sentence at the end thereof so that the paragraph will read as follows: (f) Each person subject to this regu¬ lation shall preserve and keep available for inspection by the Director, for a pe¬ riod of two years, all records necessary to substantiate ceiling prices, base period realization and average realization established pursuant to this regulation. He shall also prepare and keep available for examination by the Director of Price Stabilization for a period of two years, records of the kind which he customarily keeps showing the prices charged for the coal. (Sec. 704, 64 Stat. 816, as amended, 50 U. S. C. App. Sup. 2154) Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget In accordance with the Federal Reports Act of 1942. Effective date. This amendment 2 to CPR 3 shall become effective as of Octo¬ ber 1, 1952, except that as to sales to re¬ tail coal dealers the effective date of ceiling prices shall be November 14, 1952. Joseph H. Freehill, • Acting Director of Price Stabilization. November 14, 1952. ' 7 ' ; - ' FILE following 81 Trans 31:9 (12-11-52) 81 Trans 31:11 Technical Amendments (Amending Secs. 4(d) and 9(a)) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 3 Amendment 3 DECEMBER 11. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 3, Arndt. 3| CPR 3—Coal, Except Pennsylvania Anthracite, Delivered From Mine or Preparation Plant TECHNICAL AMENDMENTS Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161 and Economic Stabilization Agency General Order No. 2, this Amendment 3 to Ceiling Price Regula¬ tion 3. is hereby issued. STATEMENT OF CONSIDERATIONS Amendment 2 to Ceiling Price Regula¬ tion 3 was issued on November 14, 1952. That amendment provided for certain adjustments in ceiling prices resulting from wage and salary advances, and made other changes in Ceiling Price Regulation 3. It has been found that certain corrections and clarifications should be made in Amendment 2. Section 4 <d> <2» authorizes increases in ceiling prices and ceiling weighted average realization by reason of certain cost increases/‘which satisfy the policy and requirements of the Wage Stabiliza¬ tion Board of the Economic Stabilization Agency". At the time this amendment was issued it was contemplated that any wage and salary advances would be au¬ thorized by the Wage Stabilization Board. On October 18, 1952, the Wage Stabilization Board approved an increase of only $1.50 per day instead of the $1.90 negotiated by the Bituminous Coal Operators Association and the United Mine Workers of America. This decision was appealed. On December 3, 1952, the President directed the Economic Stabi¬ lization Agency to approve the $1.90 in¬ crease. A technical question arises as to whether the $1.90 increase satisfies "the policy and requirements of the Wage Stabilization Board of the Eco¬ nomic Stabilization Agency”. In order to clarify this point beyond any doubt it is deemed advisable to amend this pro¬ vision to permit adjustments resulting from increased costs which satisfy the policy and requirements of the Wage Stabilization Board or any agency or official authorized to review the Board's decision. Section 9 (a) (2) provides that pro¬ ducers must file OPS Public Form No. 155 "within 20 days after the increased costs become effective, or within 20 days after the issuance of this amendment, which¬ ever is later”. There was some delay in issuing this form. It has been found also that certain producers have en¬ countered difficulties in completing and returning the forms within the required time. Moreover, when the amendment was issued it was thought that the final decision with respect to the wage in¬ crease for bituminous coal miners would be made immediately. The final deci¬ sion by the President, however, was not made until December 3, 1952. In view of these considerations it is deemed ad¬ visable to extend the time for filing this form. A small number of producers have already filed OPS Public Form No. 155 based on a wage increase of $1.50 per day. Those producers may now refile on the same form for the full wage increase of $1.90. In the judgment of the Director of Price Stabilization the provisions of this amendment are generally fair and equi¬ table and are necessary to effectuate the purposes of Title IV of the Defense Pro¬ duction Act of 1950, as amended. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, as amended, and to relevant factors of general applicability. In view of the nature of these amend¬ ments consultation with industry repre¬ sentatives, including trade association representatives, has been impracticable. AMENDATORY PROVISIONS Ceiling Price Regulation 3. as amend¬ ed, is further amended as follows: 1. Section 4 <d> (2) is amended by in¬ serting after “Economic Stabilization Agency” the words—"or any agency or official authorized to review the action of such Board”, so that the first sentence in the sub-paragraph will read as fol¬ lows: (2) Each producer who incurs in¬ creases in costs at his mine or group of mines during the period October 1, 1952, to April 30, 1953, inclusive, by reason of a wage and salary advance and other items related to the payroll and welfare payments (as calculated by such pro¬ ducer on OPS Public Form No. 155), which satisfy the policy and require¬ ments of the Wage Stabilization Board of the Economic Stabilization Agency, or any agency or official authorized to review the action of such Board, may de¬ termine his ceiling prices and ceiling weighted average realization for such mine or group of mines as follows: • * * * * 2. Section 9 (a) (2) is amended to read as follows: <2) OPS Public Form No. 155 showing the increased costs and the increase in the ceiling weighted average realization authorized by section 4 (d> (2), shall be filed by producers other than “small mine" producers, within 30 days after the increased costs become effective, or on or before December 31, 1952, which¬ ever is later. This form shall be sent by registered mail, return receipt requested, to the Solid Fuels Branch, Rubber, Chemicals, Drugs and Fuels Division, Office of Price Stabilization, Washington 25, D. C. Although a "sipall mine" pro¬ ducer need not file OPS Public Form No. 155, he must calculate his adjust¬ ment under section 4 (d> (2) on this form and keep it on file in accordance with the provisions of section 9 (f> of this regulation. Copies of OPS Public Form No. 155 may be obtained by writ¬ ing to the Solid Fuels Branch, Rubber, Chemicals, Drugs and Fuels Division, Office of Price Stabilization, Washington 25. D. C. (Sec. 704, 64 Stat. 816, as amended, 50 U. S. C. App. Supp. 2154) Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Effective date. This amendment 3 to CPR 3 shall become effective as of Octo¬ ber 1, 1952, except that as to sales to retail coal dealers the effective date of ceiling prices shall be November 14, 1952. Joseph H. Freehill, Acting Director of Price Stabilization. December 11, 1952. — . , I . ■' • •; r' ■ ' - * . \ *' . ■ » . I, 4 ■ • ' * V I ■ . > • . , ■ • . - • • ■ u v y . ! ■ A . - *, . • '*< . r,,v *»J P - 5H ■ •• . . ■ • <• • ' • i. . - ■. ■ ?. : * i> ■ . ■ . . . , * • & i* FILE following 81 Trans 31:11 (3-30-53) 81 Trans 31:206g. 1 INTERPRETATIONS CPR 3, Sec. 6(g) DELIVERIES BY CONTRACT CARRIER Constitute "hiring” A coal producer engages the services of a contract carrier to truck coal from the mine to the customer. Increased transportation costs permitted by OPS may be added to the producer's ceiling price (if such increase does not cause the cost of transporta¬ tion to exceed the lowest common carrier rate) since the transportation facilities are "hired" by the producer within the meaning of section 6(g) of CPR 3. (6-26-52 No. 8) FILE following 81 Trans 31:301 (4-9-51) 81 Trans 31:9901 OPS PUBLIC FORM NO 1 (Formerly Solid Fuels Form No. HI OFFICE OF PRICE STABILIZATION WASHINGTON 25. D.C. MONTHLY REPORT ON COAL MINE REALIZATION (Except Pennsylvania Anthracite) Budget Bureau No. 99-R001 Approval Expires March 31, 1952 The individual company information reported on this form is for use in connection with the defense mobilization program. Persons who have access to individual company information are stibject to pena11ies for unauthorized disclosure. Submit original to: OFFICE OF PRICE STABILIZATION, COLLEGE PARK, MARYLAND One (1) copy to be retained for Producer's records 1 r 1 L_ J J l. NAME OF PRODUCER (Code Space) 2. MAILING ADDRESS OF PROOUCER (Street) (City) (Zone) (State) 3* M lHi*(Naaie(s)) (Code Space) SHIPPING POINT (Place) (State.) (Coal Act Diatrict) (Seam) 5. PERIOD OF REPORT (Month and year) REALIZATION BY SIZE GF OUPS L 1 N E SIZE GROUPS'* DESCR1PTION THIS MONTH’S SALES IN OPEN MARKET CUMULAT IVE SALES IN OPEN MARKET (See Instructions) TONS (a) TOTAL DOLLARS CHARGED (b) PER TON (c) TONS (d) TOTAL DOLLARS CHARGED (e) PER TON (f) 1 LUMP AND DOUBLE SCREENED, EXCEPT STOKER 2 STOKER COAL 3 RUN OF MINE 9 RESULTANTS (2" to 3/*” top) 5 RESULTANTS (3/^" top and minus) 9 TOTAL ALL SIZE GROUPS 10 LONG-TERM CONTRACT TONNAGE EXCLUDED _ _ *Or mine groups, See instructions "See instructions REALIZATION BASE ALLOWABLE PER TON (See instructions) $ REMARKS I certify that the data given above are true and correct to the best of my knowledge and belief DATE SIGNATURE OFFICIAL POSITION 81 Trans 31:9902 INSTRUCTIONS FOR PREPARATION OF SOLID FUELS FORM NO. 4 WHO SHALL FILE REPORTS: All producers of coal (except Pennsylvania anthracite) regardless of size are required to file a copy of Solid Fuels Form No. 4 with the Office of Price Stabilization on or before the twentieth day of each month for the previous month following the filing of a certified statement for each mine or group of mines for which ceil¬ ing prices have been proposed by the producer. WHERE: This report form to be mailed to: Office of Price Stabilization allege Park, Maryland for tabulation. Inquiries regarding Ceiling Price Regulation 3, are sent to Office of Price Stabilization, Washington 25, D. C. SALES IN OPEN MARKET: TONNAGE TO REPORT: The tonnages on which realization is to be reported shall include coal sold in the open market by customary methods of transportation, whether such coal be shipped by truck or wagon, by rail, barge, conveyor belt, tram¬ way, or other. Also to be included, at the option of the producer, is coal sold under long-term contracts as defined in the regulation (contracts running three (3) years or more and executed prior to July 1, 1948). Railroad weights shall be reported for all coal passing over railroad scales and gagers’ weights for all coal loaded at the mine into river craft. All other coal shall be reported at accurate weights. LONG-TERM CONTRACT TONNAGE EXCLUDED: If you elected to exclude long-term contract tonnage from your realization for the base period, report such monthly tonnage and realization on line 10. OTHER EXCLUDED TONNAGE: The tonnages on which realization is not to be reported: Other excluded tonnage shall include the following: (a) coal used to produce coal, (b) sales to employees of the producer, (c) coal used by producer or transported for consumption by him where no transfer of title is involved, (d) controlled sales for consumption by buyer where the relationship between the producer and buyer is that of wholly owned or controlled subsidiary and parent corporation, where there is common ownership or control of the producer and buyer in a third party, or where the relation between producer and buyer for any similar reason is such that the sale is noncompetitive. This definition of controlled sales is directed primarily to coal ordinarily designated as "captive," i.e., where the coal is delivered to and consumed by an affiliated concern. It is not intended to cover the disposal of coal-through an affiliated selling agency or through affiliated storage docks or retail yards to consumers who are not affiliated with the producer. SIZE GROUPS FOR REALIZATION PURPOSES: Size groups should be reported as follows: SIZE GROUP 01. - All lump and all double screened coal, except stoker coal. SIZE GROUP 02. SIZE GROUP 03. SIZE GROUP 04. SIZE GROUP 05. CUMULATIVE SALES: Stoker coal. Mine run, modified mine run, domestic mine run, screened and altered mine run, and minus resultant with top size over 2 inches. All minus resultant with top size over 3/4 inches but not exceeding 2 inches. All minus resultant with top size not exceeding 3/4 inch. Beginning with the month of February, 1951, tonnages and total dollars should be cumulated and per ton reali¬ zation computed until a twelve-month period is covered (ending January 31, 1952). Thereafter, there shall appear in the cumulative columns figures for the most recent twelve months of which the current month reported shall be one. REALIZATION BASE ALLOWABLE: The realization ceiling or target allowable per ton shall be shown monthly and shall accurately reflect the per-ton figure shown on Solid Fuels Form No. 1-E or No. 1-W, Psrt A, Line 99, or Solid Fuels Form No. 2, Line 12, whichever is governing. If for some reason, neither one governs the realization base allowable, the authority for such realization base allowable should be stated on each monthy report. If realization base allowable is changed, the more recent realization base allowable should be shown together with explanation of change. FILE following 81 Trans 31:9902 (4-9-51) 81 Trans 31:9903 OPS PUBLIC FORM NO. 2 (Solid Fuels No. 3~0) | OFFICE OF PRICE STABILIZATION f WASHINGTON 25, D.C. COAL PRICES BASED UPON HIGHEST PRICES CHARGED ON ACTUAL SALES IN OPEN MARKET DURING PERIOD SPECIFIED (Except Pennsylvania Anthracite) Budget Bureau No. 94-5105 Approval Expires April 30. 1951 The individual company information reported on this form is for use in connection with the defense mobilization program. Persons who have access to individual company information are subject to penalties for unauthorized disclosure. I Hines Located East of Mississippi River - July I, 1948 through June 30, 1949 and, January 1-15, 1951. II Mines Located West of Mississippi River - March I, 1950 through January 15, 1951. 1. NAME OF 01 STRI BUTOR (Leave Blank) 2. MAILING ADCRESS OF DISTRIBUTOR (Street) (City) (Zone) (State) (Leave Blank) 3. NAME OF PRODUCER 4. MINE OR GROUP OF MINES (Name(a) See instructions (Leave Blank) 5. SHIPPING POINT (Place) (State) (Coal Act District) (i itate) PRICES TO BE REPORTED LINE NO. NAME OF SIZE, SIZE GROUP, OR GRADE (a) DIMENSIONS IN INCHES (b) HIGHEST PRICE BASED UPON ACTUAL SALES (c) TONNAGE SHIPPED ON PRICE SPECIFIED IN COL. (c) (d) DATE OF SALE let METHOD OF TRANSPORT FROM, MINE m MONTH TEAR 1 X 2 X 3 X 4 X 5 X 6 X 7 X 8 X 9 X 10 X 11 X 12 X 13 X 14 X 15 X 16 X 17 X 18 X 19 X 20 X REMARKS I certify that the data given above are true and correct to the best of my knowledge and belief. DATE SIGNATURE 0FFICIAL POSITION 81 Trans 31:9904 INSTRUCTIONS FOR PREPARATION OF OPS PUBLIC FORM NO 2. (Solid Fuels Form No. 3-D) WHO SHALL FILE REPORTS: All distributors of coal (except Pennsylvania anthracite) who desire to avail themselves of the prices permitted by the proviso of Section 10 of Ceiling Price Regulation No. 3 are required to file a copy of Solid Fuels Form No. 3-D with the Office of Price Stabilization on or before February 10, 1951, for each mine or preparation plant from which coal is purchased and resold, provided that a single combined report may be filed for any group of mines operated by a single producer if in the past such producer has customarily shipped interchangeably from such group of mines. HIGHEST BASE PRICES TO BE REPORTED: Fill out one line for each size, size group and grade, for each significant tonnage on which you wish to propose a ceiling price and give the following information: (a) In Column (a) give name of size conmonly used by the trade or size group as described in the following: Size group 01. All lump and all double screened coal, except stoker coal. Size group 02. Stoker coal. Size group 03. Mine run, modified mine run, domestic mine run, screened and altered mine run, and minus resultant with top size over 2 inches. Size group 04. All minus resultant with top size over 3/4 inch but not exceeding 2 inches. Size group 05. All minus resultant with top size not exceeding 3/4 inch. Also designate whether the coal is washed or treated, etc. for any preparation on which price differentials have been customary. (b) In Column (b) give dimensions, both top size and bottom size in inches for coal described in Column (a). (c) List highest price for the size described in Columns (a) and (b) on actual sales during the period specified on the form. (d) and (e) Give tonnage in Column (d), with month and year of sale in Coluim (e) on which your highest price is based. (f) Give information in Column (f) on method by which coal was shipped, whether by rail, river, conveyor, tramway, truck, or other. CEILING PRICES TO BE REPORTED: Within ten days of the effective date of Ceiling Price Regulation No. 3 you must file a certified statement of your ceiling prices if you desire to avail yourself of the prices permitted by the proviso of Section 10 of CFR No. 3. Such statement should be made by letter and should in¬ clude the mine identification information and the information contained in Columns (a), (b), and (f) on Solid Fuels Form No. 3-D and must be filed with the Director and with the regional office or offices of the Office of Price Stabilization in area or areas where your coal is shipped. FILE following 81 Trans 31:9904 (10-26-51) 81 Trans 31:9905 OPS PUBLIC FORM NO. 24 UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D.C. BUDGET BUREAU NO. 94.RI 27 APPROVAL EXPIRES MARCH 31. 1952 MONTHLY PLANT REALIZATION ON BRIQUETS MADE PRINCIPALLY FROM BITUMINOUS COAL PURSUANT TO CPR 3 - SR 1 The individual company information reported on this form is for use in connection with the De¬ fense Mobilization Program. Persons who have access to individual company information are subject to penalties for unauthorized disclosure. Submit Original only to the Office of Price Stabilization, Washington 25', D. C. See Instructions on reverse side. NAME OF PRODUCER MAILING ADDRESS OF PRODUCER (Street, City, Zone, State) BRIQUET PLANT (Name(s)) • SHIPP ING POINT (Place and State ) REPORT (Month and Year ) REALIZATION BY SHAPE L 1 N E SHAPE OF BRIQUET UNIT WEIGHT IN OUNCES THIS MONTH'S SALES IN OPEN MARKET CUMULATIVE SALES IN OPEN MARKET (See Instructions) TONS (a) DOLLARS CHARGED TONS (d) DOLLARS CHARGED TOTAL (b) PER TON (c) TOTAL (e) PER TON (f) 1 PILLOW $ $ $ $ 2 CYLINDRICAL OR BARREL 3 OVAL 4 OTHER (Specify) 5 other (Specify) 6 TOTAL ALL SHAPES 7 LONG-TERM CONTRACT TONNAGE EXCLUDED REALIZATION BASE ALLOWABLE PER TON (See Instructions) AMOUNT AUTHORITY $ 1—1 SOLID FUELS 1_1 FORM IE or 1W □ SOLID FUELS FORM NO. 2 □ OTHER (Specify) l_ REASON FOR CHANGE IN BASE ALLOWABLE (If any) I certify that the data given above are true and correct to the best of my knowledge and belief. NOTICE - A willful false return is a criminal offense. SIGNATURE OF OWNER OR AUTHORIZED REPRESENTATIVE TITLE DATE 81 Trans 31:9906 INSTRUCTIONS FOR PREPARATION OF OPS PUBLIC FORM NO. 24 , WHO SHALL FILE REPORTS: All producers of bituminous briquets produced at plants in or near the coal fields regardless of size are required to file a copy of OPS Public Form No. 24 with the Office of Price Stabilization, Washington 25, D.C., on or before the last day of each month for the previous month following the filing of a certified statement for each briquet plant or group of plants for which ceiling prices have been proposed by the producer. SALES IN OPEN MARKET: TONNAGE TO REPORT: The tonnage on which realization is to be reported shall include briquets sold in the open market by customary methods of transportation, whether such briquets be shipped by truck or wagon, by rail, barge, conveyor belt, tramway, or other. Also to be included, at the option of the producer, are briquets sold under long-term contracts as defined in the regulation (contracts running three (3) years or more and executed prior to July 1, 1948). • \ Railroad weights shall be reported for all briquets passing over railroad scales and gagers* weights for all briquets loaded at the plant into river craft. All other briquets shall be reported at accurate weights. LONG-TERM CONTRACT TONNAGE EXCLUDED: If you elected to exclude long-term contract tonnage from your realization for the base period, report such monthly tonnage and realization on Line 7. OTHER EXCLUDED TONNAGE: The tonnage on which realization is not to be reported: Other excluded tonnage shall include the following: (a) briquets used at briquet plants for power or heat, (b) sales to employees of the producer, (c) briquets used by producer or transported for consumption by him where no transfer of title is involved, (d) controlled sales for consumption by buyer where the relationship between the pro¬ ducer and buyer is that of wholly owned or controlled subsidiary and parent corporation, where there is common ownership or control of the producer and buyer in a third party, or where the relation between producer and buyer for any similar reason is such that the sale is noncompetitive. This definition of controlled sales is directed primarily to briquets ordinarily designated as * captive” i. e., where the briquets are delivered to and consumed by an affiliated concern. It is not intended to cover the disposal of briquets through an affiliated selling agency or through affiliated storage docks or retail yard to consumers who are not affiliated with the producer. SHAPES: On the appropriate line list each shape of briquet which you produce. For each shape show the weight in ounces. CUMULATIVE SALES: Beginning with the month of April 1951, tonnages and total dollars should be cumulated and per-ton realization computed until a twelve-month period is covered (ending March 31, 1952). Thereafter, there shall appear in the cumulative columns figures for the most recent twelve months of which the current month reported shall be one. % REALIZATION BASE ALLOWABLE: The realization ceiling or target allowable per ton shall be shown monthly and shall accurately reflect the per-ton figure shown on Solid Fuels Form 1-E or No. 1-W, Part A, Line 99, or Solid Fuels Form No. 2, Line 12, whichever is governing. If for some reason, neither one governs the realization base allowable, the authority for such realization base allowable should be stated on each monthly report. If realization base allowable is changed, the more recent realization base allowable should be shown together with explanation of change. FILE following 81 Trans 31:9906 (11-20-52) 81 Trans 31:9907 OPS PUBLIC FORM NO. 155 (11-52) UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D. C. COMPUTATION OF ADJUSTMENT IN CEILING PRICES AND CEILING WEIGHTED AVERAGE REALIZATION (REALIZA¬ TION BASE ALLOWABLE) (COAL, EXCEPT PENNSYLVANIA ANTHRACITE) PURSUANT TO SEC. 4(d)(2) OF CPR 3, AS AMENDED f - NAME OF PRODUCER FORM APPROVED BUDGET BUREAU NO. 94-R1033 Th* Individual company information ropartod on this form is for uso in connection with the Do- fonso Mobilisation Program. Parsons who hav« access to individual company information art subject to penalties for unauthorized disclosure. This form may be reproduced without change. 1 - ADDRESS OF PRODUCER (No. and Street) (City, tone. State) S - MINE OR CROUP OF MINES (Name(e)) (Shipping point) (State) (Coal Act District) (Seam) 4 - TYPE OF OPERATION (Check) I | C - STRIP MINE J A * DEEP MINE—MECHANICALLY LOADED J j B - DEEP MINE—HAND LOADED B - MOST RECENT REPRESENTATIVE PAYROLL PERIOD SUBSEQUENT TO SEPTEMBER 30. 1 08 1 AND PRIOR TO OCTOBER 1, 1 052 FROM (MO.) (Day) »» TO (MO.) (Day) • • PRODUCTION DURINC PAYROLL PERIOD SPECIFIED IN ITEM 5 TONS 7 - PAYROLL DURING PERIOD SPECIFIED IN ITEM 5 A - Paid to mine workers $ i B - Paid to supervisory, clerical and others $ C - Total dollar amount (Item 7A + Item 7B) $ D - Per ton amount (Item 7C -f Item 6) (Calculate and report all per ton amounts to four places beyond decimal) $ 8 - APPLY NEW WAGE AND SALARY RATES TO PAYROLL SPECIFIED IN ITEM 5 A - Mine workers $ B- Supervisory, clerical and others $ C - Total projected payroll (Item 8A + Item 8B) $ D - Per ton amount (Item 8C -f- Item 6) $ 9 - Per ton increase due to wage and salary advances (Item 8D minus Item 7D) $ 10 • Per ton increase due to increases related to the payroll, but not included in Item 9 above. $ 11 - Per ton increase in payment to welfare and retirement fund $ 12 - Total per ton increase (Item 9 + Item 10 + Item 11) $ 13 -Realization per ton in period, October 1, 1951, through September 30, 1952 (OPS Public Form No. 1, line 9, Col. (f)). $ 14 - Adjusted current realization (Item 12 + Item 13) $ 15 - Present realization base allowable (As reported on OPS Public Form No. 1) $ 16 - Per ton amount of adjustment in Realization Base allowable. If amount in Item 14 is higher than the amount in Item 15, enter the difference on this line; rf the amount in Item 15 is higher than the amount in Item 14, write "None1’ on this line. In the latter case, the amount in Item 15 remains os the realization base allowable, and Item 17 is not applicable since no adjustment in realization base allowable is permitted. $ (Over) 81 Trans 31:9908 17 - Realization base allowable under Section 4(d)(2) of CPR 3, as amended. Using the formula in Column (b) of the following table and beginning with the month in which the increase reported in Item 12 became effective as the first month, enter the realization base allowable for that month and for each succeeding month in Column (c) MONTH (Show Name and Year) (•) REALIZATION BASE ALLOWABLE FORMULA (b) REALIZATION BASE ALLOWABLE PER TON UNDER SECTION 4(d)(2) OF CPR 3, AS AMENDED (c) 1st Amount in Item 15+ 10% of amount in Item 16 $ 2nd Amount in Item 15 + 20% of amount in Item 16 $ 3rd Amount in Item 15 + 30% of amount in Item 16 $ j 4th Amount in Item 15 + 40% of amount in Item 16 $ 5th Amount in Item 15 + 50% of amount in Item 16 $ 6th Amount in item 15 + 60% of amount in Item 16 $ 7* Amount in Item 15+ 70% of amount in Item 16 $ 8th Amount in Item 15 + 80% of amount in Item 16 $ 9th Amount in Item 15 + 90% of amount in Item 16 $ 10th Amount in Item 15 + 100% of amount in Item 16 $ 11th Amount in Item 15 + 100% of amount in Item 16 $ 12th Amount in Item 15 + 100% of amount in Item 16 $ All Succeeding Months Amount in Item 15 + 100% of amount in Item 16 $ 1 certify that the data given on this form are true NOTICE: A willfully false statement and correct to the best of my knowledge and belief. is a criminal offense. SI6NATURE OF PRODUCER TITLE DATE OPS PUBLIC FORM NO. 155 (11-52) (Page 2) INSTRUCTIONS FOR COMPLETING OPS PUBLIC FORM NO. 155 (11-52) Submit original on/y. Detach instructions before submitting. 81 Trans 31:9909 Sec. 4(d)(2) of CPR 3, as amended, provides for an adjust¬ ment in ceiling prices for all mines or groups of mines and an ad¬ justment in ceiling weighted average realization (Realization Base Allowable) for certain mines or groups of mines which incurred cost increases as a result of increased wage and salary costs, related payroll costs and welfare and retirement fund payments, which increases became effective subsequent to September 30, 1952, and prior to May 1, 1953, and which increases satisfy the policy and requirements of the Wage Stabilization Board of the Economic Stabilization Agency. The adjustments should be calcu¬ lated on OPS Public Form No. 155 (11-52), The total per ton in¬ crease calculated in Item 12 is the amount by which you may in¬ crease your ceiling prices. The amount, if any, obtained in Item 16 is the amount you may add to your ‘Realization Base Allowable;" this adjustment may be applied only on the graduated basis pro¬ vided in Item 17. WHO SHALL PREPARE REPORTS: All producers of coal (except Pennsylvania anthracite) who wish to claim an adjustment in their ceiling prices and "Realiza¬ tion Base Allowable" by reason of increases incurred in accord¬ ance with Section 4(d)(2) of CPR 3, as amended should prepare OPS Public Form No. 155(11-52). A report should be prepared for each mine or group of mines for which a "Realization Base Allowable" and ceiling prices have been established. WHO SHALL FILE REPORTS: Reports shall be filed by all producers of coal (except Penn¬ sylvania anthracite) for each mine or group of mines which produced in excess-of 100 tons of coal per day of operation during the cal¬ endar year 1951, and who wish to claim an adjustment in accord¬ ance with Section 4(d)(2) of CPR 3, as amended. This form should be filed by registered mail, return receipt requested, with the Solid Fuels Branch; Rubber, Chemicals, Drugs and Fuels Division; Office of Price Stabilization, Washington 25, D. C., within 20 days of the issuance date of Amendment 2 to CPR 3, or within 20 days after the increases become effective, whichever date is later. If operators of mines which produced 100 tons or less of coal per day of operation during the calendar year 1951 wish to claim an adjustment in their ceiling prices and ceiling weighted average real¬ ization as a result of increased wage and salary costs, related pay¬ roll costs and welfare and retirement fund payments occasioned by increases which became effective subsequent to September 30, 1952, and prior to May 1, 1953, and which increases satisfy the policy and requirements of the Wage Stabilization Board of the Economic Stabilization Agency, they should calculate the adjust¬ ment on OPS Public Form No. 155 (11-52) but need not file the form with the Office of Price Stabilization. It should be retained in the producer’s files in accordance with the record-keeping requirements of the regulation. MOST RECENT REPRESENTATIVE PAYROLL PERIOD (ITEM 5): The producer shall select the most recent representative pay¬ roll period subsequent to September 30, 1951 and prior to October 1, 1952. For purposes of this report, a representative payroll period means a period of at least two consecutive weeks of normal opera¬ tions. PRODUCTION (ITEM 6): Report all coal for use or for sale which was produced at the mine or group of mines covered by this report during the representa¬ tive payroll period selected. PAID TO MINE WORKERS (ITEM 7A): Include amounts paid to all mine workers paid on a daily or tonnage basis. PAID SUPERVISORY, CLERICAL AND OTHERS (ITEM 7Bh Include amounts paid to all supervisory, clerical, and other employees, exclusive of mine workers. APPLYING NEW WAGE AND SALARY RATES (ITEM 8)t Take payroll selected as representative and apply to it new wage and salary rates which became effective subsequent to Sep¬ tember 30, 1952 and prior to May 1, 1953 to determine adjusted basis comparable to amounts shown in Items 7A and 7B. PER TON INCREASE DUE TO INCREASES RELATED TO THE PAYROLL, BUT NOT INCLUDED IN ITEM 9 ABOVE. Include all increases in payroll costs, except direct payroll cost increases reported in Item 9. For example, increases which became effective subsequent to September 30, 1952 and prior to May 1, 1953 in social security taxes, workmen’s compensation, un¬ employment compensation, etc., which are based on the payroll and are borne by the producer. Do not include increases in supply costs and other costs which are not related to the payroll. PER TON INCREASE IN PAYMENTS TO WELFARE AND RETIRE¬ MENT FUND (ITEM 11): Include welfare and retirement fund payment increase per ton which satisfies the requirements of the Wage Stabilization Board and which became effective subsequent to September 30, 1952 and prior to May 1, 1953. TOTAL PER TON INCREASE (ITEM 12): This is the amount by which you may increase your ceiling prices. For adjustment in "Realization Base Allowable" see Items 16 and 17. (Over) 81 Trans 31:9910 INSTRUCTIONS FOR COMPLETING OPS PUBLIC FORM NO. 155 (11-52) (Continued) REALIZATION IN PERIOD OCTOBER 1,1951 THROUGH SEPTEM¬ BER 30, 1952 (ITEM 13): Report the cumulative per ton realization shown on Line 9, Column (f) of the OPS Public Form No. 1 report for September 1952. This amount should represent the total dollars received from the sale of all sizes and grades of coal during the period October 1, 1951 to September 30, 1952, both dates inclusive, divided by the total tons of such coal sold during the same period. PRESENT REALIZATION BASE ALLOWABLE (ITEM 15): This is the per ton ceiling weighted average realization previously reported as "Realization Base Allowable" on Line 12 of Solid Fuels Form No. 2; or, in the event no Form No. 2 was filed, on Line 99, Column C, Part A of Solid Fuels Form No. 1-E or 1-W; or established under Section 6 of CPR 3. PER TON AMOUNT OF ADJUSTMENT IN REALIZATION BASE ALLOWABLE (ITEM 16): This per ton amount of adjustment, if any, may be applied only on the graduated basis provided in Item 17. REALIZATION BASE ALLOWABLE UNDER SEC 4(d)(2) OF CPR 3, AS AMENDED (ITEM 17): Show as the first month in Column (a) of the table the name of the month in which the increase reported in Item 12 became effec¬ tive. For most mines this will be the month of October 1952. It should be noted that the realization base allowable increases on a graduated scale for the first ten months after the increase in Item 12 became effective. The cumulative weighted average real¬ ization for a 12-month period ending with a month shown in Column (a) cannot exceed the realization base allowable in Column (c) for that month. EXAMPLES OF COMPUTATION OF ADJUSTMENT IN REALIZATION BASE ALLOWABLE UNDER SEC 4(d)(2) OF CPR 3, AS AMENDED 1. The following mine would qualify for an adjustment in its "Realization Base Allowable” Item 12 - Total per ton increase f 0.3500 Item 13 - Realization per ton 10/1/51 thru 9/30/52 .< 4.9500 Item 14 - Adjusted current realization per ton $ 5.3000 Item 15 - Present realization base allowable _ per ton I 5,0000 Item 16 - Per ton amount of adjustment in Real¬ ization Base Allowable > 0.3000 Item 17 - Computation of realization base al¬ lowable under Sec. 4(d)(2) of CPR 3, as amended (Assume Item 12 increase became ef¬ fective October 1, 1952) (See table below) II. The following mine would not qualify for an adjustment in its "Realization Base Allowable" Item 12 - Total per ton increase $ 0.3800 Item 13 - Realization per ton in period October 1, 1951 through September 30, 1952 I 4.7000 Item 14 - Adjusted current realization per ton $ 5.0800 Item 15 - Present realization base allowable per ton > 5.2000 Item 16 - Per ton amount of adjustment in Real¬ ization Base Allowable None This mint’s total realization base allowable remains at $5.2000 per ton. EXAMPLE MONTH (Show Name and Year) («) REALIZATION BASE ALLOWABLE FORMULA (*») REALIZATION BASE ALLOWABLE PER TON UNDER SEC. 4(d)(2) OF CPR 3, AS AMENDED (c) 1st October 1952 Amount in Item 15 + 10% of amount in Item 16 $ 5.0300 2nd November 1952 .. » .. + 20%.” " 5.0600 3rd December 1952 " ” " " + 30%.. ” ” 5.0900 4th January 1953 ” ” ” ” + 40%. 5.1200 5th February 1953 »• .. 50%.. " 5.1500 6th March 1953 ” ” •* ” + 60% ... ” 5.1800 7th April 1953 ” " ” " + 70% ” 5.2100 8th May 1953 » H ». II + 80% ” .. ” 5.2400 9th June 1953 •• •’ ” ” + 90% ” ” . 5.2700 10th July 1953 .* ” + 100%" ” .. 5.3000 11th August 1953 5.3000 12th September 1953 5.3000 All Succeeding Months 5.3000 81 Trans 32:1 Ceiling Price Reg. 4 FEB. 2, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | CPR 4 | Anthracite Delivered From Mine or Preparation Plant Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong ), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 F. R. 738); It is hereby ordered, That ceiling prices on the sale of anthracite from a mine or preparation plant shall be effective as provided in this Ceiling Price Regula¬ tion 4. Statement of Considerations The level of prices on anthracite has not changed basically since the start of the Korean conflict. Faced with inten¬ sive competition of oil, natural gas, and bituminous coal, the anthracite industry has not been able to realize market ex¬ pansion with the growth of defense ac¬ tivity and, as a matter of fact, is operating on a narrow financial margin. Moreover, it appears that anthracite mining capacity is well above require¬ ments of the prospective market. Available information, covering over two-thirds of the anthracite industry, shows that net income before taxes was about 15 cents per ton in 1950, and as low as 5 cents per ton in November of that year. This income was only 1 to 2 per¬ cent of the average mine price. The larger sizes are distributed almost exclusively for home heating. Although a substantial portion of the steam sizes is sold to industrial consumers, primari¬ ly for steam generation purposes, the major portion of the small sizes is con¬ sumed in domestic and commercial heat¬ ing. All together, about 75 percent of the commercial anthracite production moves for space heating purposes. Sub¬ stitutes for solid fuels cannot be made without equipment changes. The New England States, New York, New Jersey, Delaware, Maryland, Penn¬ sylvania. and the District of Columbia make up the industry's primary market¬ ing area, and this area consumes about 80 percent of the anthracite shipped to market. As of July 1, 1948, the Census Bureau estimated that almost one-third of the nation's population lived in this marketing area. These facts demon¬ strate the vital importance of the an¬ thracite industry as an important source of fuel for a large segment of the nation's population. The need to increase its production during the defense period, is underscored further by the fact that of all the fuels commonly used for space heating in this principal market area, the consumption of anthracite accounted for 40 percent of the total of all fuels consumed. Anthracite during World War II. and the need for increased "production dur¬ ing the present defense period. The anthracite industry made a substantial contribution to the heavy demands for fuel during World War II. For the five years ending December 31, 1946, the total anthracite production averaged more than 60 million tons per year. Because of the large military demands for fuel oil, the great industrial needs for bi¬ tuminous coal and metallurgical coke, and the shifts in population, many con¬ sumers formerly using these war-drafted fuels, had to use anthracite to take care of their fuel needs. The strategic importance of anthra¬ cite in time of national emergency, can¬ not, therefore, be overestimated. Upon the basis of these facts and cir¬ cumstances, and giving consideration to the national effort to achieve maximum production in furtherance of the objec¬ tives of the Defense Production .Act of 1950, it is readily apparent that anthra¬ cite production must expand to meet the present defense demands. The present position of the anthracite industry. Preliminary figures show that the total production for 1950 will approx¬ imate 42 million tons, or 30 percent less than the average yearly production dur¬ ing the period of World War II. The industry's price pattern since April 1950. On March 16, 1950, the an¬ thracite industry signed a wage contract, calling for increased wages, with repre¬ sentatives of the United Mine Workers of America. Anthracite prices are cus¬ tomarily reflected in published circular prices issued by the major operators, and in April of 1950, the operators published their circular prices which took into ac¬ count the March wage contract. Since April 1950, however, basic material and supply costs have steadily risen, while the prices published in April 1950 pre¬ vailed for sales made throughout that year. A study of the Industry’s supply cost shows a weighted average increase of 13.4 percent. This is equivalent to 10.7 cents per net commercial ton of produc¬ tion. Anthracite companies were no¬ tified on January 1, 1951, by the Bureau of Employment and Ucemployment Compensation .of the State of Pennsyl¬ vania that minimum unemployment rates in effect under the merit rating sys¬ tem were being increased. The maxi¬ mum taxable wages increased from $3,000 to $3,600 for Old Age Insurance. The total social security increase cost is 9.2 cents per net ton. On January 26, 1951, the Industry signed a new wage contract with the UMWA calling for a higher wage. Trans¬ lated into production costs, this wage increase with equalizing increases for clerical and supervisory forces, adds $0 696.per net ton to the industry’s cost of producing anthracite. The industry’s level of prices on January 1, 1951, and its present financial condition does not per¬ mit industry absorption of this increased cost of production. The total of all of the cost increases detailed is 89.5 cents. Giving due consideration to the na¬ tional effort to achieve maximum pro¬ duction in furtherance of the objectives of the Defense Production Act of 1950, it is thus apparent that the ceiling prices for the industry must take into account the increased supply costs which the in¬ dustry has not passed along to its cus¬ tomers. It is also apparent, for the same reasons, that the period May 24, 1950, to June 24, 1950, is not generally represen¬ tative for this industry, and that the in¬ dustry must be permitted to price its anthracite on the basis of the circular prices which it had in effect on January 1, 1951, supplemented by the aforesaid increased costs. Special services such as oil treatment, truck loading at pockets, etc., shall be continued and charges for such services shall be made in the same amounts as they have historically been in the past. The regulation also establishes quality standards for anthracite and specified amounts by which ceiling prices must be reduced for anthracite failing to meet such standards. These stated differen¬ tials are defined to reflect the loss in value to the consumer by reason of the higher ash content, and it is accordingly necessary to decrease the ceiling prices applicable to substandard anthracite to preserve the relative values between standard and poor quality anthracite. With respect to customary marketing of anthracite some companies have re¬ ceived a premium for anthracite. Upon filing proof with the Director, producers may add such differential, not in excess of 25 cents per net ton, to the ceiling price applicable to such coals. Findings of the Director of Price Stabilization In the judgment of the Director of Price Stabilization the provisions of Ceiling Price Regulation No. 4 are gener¬ ally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; and to relevant factors of general applicability. In formulating this regulation the Di¬ rector has consulted with representatives of the industry to the extent practicable under the circumstances, and has given consideration to their recommendations. Sec. 1. Applicability of regulation. 2 Definitions. 3. Prohibitions against selling or delivering anthracite at prices above the celling. 4 Less than celling prices. 5. Adjustment of prices. 9. Adjustable pricing. 81 Trans 32:2 8ec. 7. Premium coals. 8 Special services. 9 Transportation 10. Taxes 11. Evasion. 12. Records and reports. 13. Petitions for amendment. 14. Enforcement. Authoritt: Sections 1 to 14 Issued under sec. 704. Pub. Law 774, 81gt Cong. Interpret or apply Title IV. Pub. Law 774, 81st Cong E. O 10181, Sept. 0. 1050. 15 F R 6106 Section 1. Applicability of regulation. This regulation establishes celling prices on anthracite produced and sold f. o. b. the mine. Sec. 2. Definitions. When used in this regulation, the term: (a) “Person'' Includes an individual, corporation, partnership, association or any other organized group of persons, or legal successor or representative of any of the foregoing, and Includes the United States or any agency thereof, or any other government, or any of its political subdivisions, or any agency of any of the foregoing. (b) ‘ Producer” means a person en¬ gaged in the business of mining and/or preparing anthracite and any person acting as an agent of a producer in the sale of anthracite. <c) “Distributor’’means a person who purchases anthracite f. o. b. transporta¬ tion facilities at a mine or preparation plant for resale, and resells the same in not less than cargo or railroad carload lots, or the equivalent thereof, without physically handling such anthracite, and any person acting as an agent of a dis¬ tributor in the sale of anthracite. (d) "Anthracite’’ means all coal pro¬ duced in the Lehigh, Schuylkill and Wyoming regions in the State of Penn¬ sylvania. <e) "Ground storage facility” means a storage facility not operated as an ad¬ junct of a mine or preparation plant, which is customarily used bv a producer or distributor for storage of anthracite in transit from a mine or adjunct prepa¬ ration plant to a purchaser. (f) ‘ Ton" means a short or net ton of 2,000 pounds. (g) “F. o. b. mine” means free on board transportation facilities at a mine, a preparation plant or other loading fa¬ cilities (not Including ground storage facilities). Sec. 3. Prohibition against selling or delivering anthracite at prices above the ceiling. On and after the 1st day of February 1951, regardless of any con¬ tract. agreement, lease, or other obliga¬ tion: <a) No person who is a producer or distributor shall sell, dispose, deliver, or ship anthracite from a mine at prices higher, f. o. b. mine, than the ceiling prices set forth in Appendix A, attached hereto, and made a part hereof. (b> No person shall, in the course of trade or business, buy or receive anthra¬ cite so delivered or shipped at prices higher than the ceiling prices set forth in Appendix A, attached hereto, and made a part hereof. <c> No person shall agree, offer, solicit, or attempt to do anything prohibited under this regulation Sec. 4. Less than ceiling prices. Lower prices than those set forth in this part and Appendix A attached hereto may be charged, demanded, paid, or offered Sec. 5. Adjustment of prices. The Di¬ rector may by order grant an adjust¬ ment of the prices shown in Appendix A when the producers, individually or col¬ lectively, show to the satisfaction of the Director that (a) the sale of the entire production of the mine at ceiling prices would not return a realization equal to the representative cost of production; and (b) such costs of production are of a continuing nature; and <c) the pro¬ duction of the mine is necessary to sup¬ ply the fuel needs of the economy. The adjustments to ceiling prices resulting from such cost increases may be allo¬ cated among the various sizes of anthra¬ cite after consultation with the Anthra¬ cite Industry Advisory Committee. Sec. 6 Adjustable pricing. Any pier- son may agree to sell at a price which can be increased up to the ceiling price in effect at the time of delivery; but no person may. unless authorized by the Office of Price Stabilization, deliver or agree to deliver at prices to be adjusted upward in accordance with action taken by the Director after delivery. Such authorization may be given when a re¬ quest for a change in the applicable maximum price is pending, but only if the authorization is necessary to pro¬ mote distribution or production and if it will not interfere with the purposes of the Defense Production Act of 1950. The authorization may be given by the Director or by any official of the Office of Price Stabilization to whom the au¬ thority to grant such authorization has been delegated. The authorization will be given by order, except that it may be given by letter or telegram when the contemplated revision will be the grant¬ ing of an individual application for adjustment. Sec. 7. Premium coals. Where a pro¬ ducer historically has marketed anthra¬ cite, graded as premium coals, and has sold such coals at premium prices, such producer may. for such premium coals in the rice and larger sizes, and upon filing evidence in support thereof with the Director, add to the ceiling prices established in this part a sum, not in excess of 25 cents per net ton, equal to the amount by which the price at which such producer had theretofore marketed and sold such premium coals in excess of the standard prices. Sec. 8 Special services. There may be added to the applicable ceiling prices set forth in this part the charges made for any special services and pocket charges including (specifically but not exclu¬ sively) calcium chloride treatment, oil treatment, specially prepared sizes, split cars (containing more than one size), partitions, box-car loading, truck load¬ ing from pockets at the mines, bags and bagging, and the making of local or re¬ tail deliveries from the mine or adjunct preparation plant: Provided, however, That such charges shall not exceed the charges made for the same service dur¬ ing the month of January 1951 (or if no such charges were made in January 1951, the nearest month prior thereto). Sec. 9. Transportation. Where an¬ thracite is delivered from a mine, ad¬ junct preparation plant, to or from any ground storage facility in any transpor¬ tation facilities owned or subject to the control of the producer or a distributor or subsidiary or affiliate of the producer or distributor, or in any transportation facilities hired by the producer or dis¬ tributor. there may be added to the ap¬ plicable ceiling prices established herein a sum not in excess of the actual trans¬ portation costs incurred by such pro¬ ducer or distributor, or subsidiary or affiliate thereof, determined in a reason¬ able manner, but in no event to exceed the lowest common carrier rate, if any. for a haul between the same points: Provided, That there may also be added by a producer, to the applicable maxi¬ mum price established herein, an amount not in excess of the transporta¬ tion tax imposed by section 620 of the Revenue Act of 1942 if said producer in¬ curred such tax and if he separately states the amount of the tax in sales to all purchasers except the United States or any agency thereof, the District of Columbia, any state government or any political subdivision thereof. Sec. 10. Taxes. There may be added to applicable celling prices the amount of any sales, gross receipts, gross pro¬ ceeds, or use tax levied by any statute or ordinance, under which the tax is measured by gross proceeds on units of sale, only if the statute or ordinance permits or requires the seller to state the tax separately and the seller does state it separately on his invoice or other memorandum of sale, and only if the seller customarily added the amount of such tax to the ceiling price and sep¬ arately stated the tax on his invoices in the month of January 1951. Sic. 11. Evasion. Thp price limita¬ tions set forth’ in this regulation shall not be evaded, whether by direct or in¬ direct methods, in connection with any offer, solicitation, agreement, sale, de¬ livery. purchase or receipt of or relating to anthracite coal alone or in conjunc¬ tion with any other commodity or by way of commission, service, transportation or other charge, or discount, premium or other privilege, or by tie-in agreement or other trade understanding, or by the making of excessive charges for trucking or otherwise. Sec. 12. Records and reports, (a) Each producer and distributor shall pre¬ serve and keep available for inspection by the Director for a period of two years such records as the Director shall deter¬ mine to be necessary under this part; and the Director may require such re¬ ports as he deems necessary in order to effectuate this regulation. (b) The producer shall furnish to each retail coal dealer to whoLt he sells coal a statement showing the exact dol- lar-and-cents amount the producer has added to the price of his coal as author¬ ized under this regulation. 81 Trans 32:3 p > ► Sec. 13. Petitions for amendment. Any person seeking an amendment of any provision of this regulation may file a petition for amendment in accordance with Price Procedural Regulation 1 is¬ sued by the Economic Stabilization Ad¬ ministrator. Sec. 14. Enforcement. Any person who violates any provision of this regu¬ lation is subject to the criminal penal¬ ties. civil enforcement actions, and suits for damage provided for by the Defense Production Act of 1950. Effective date. This regulation shall become effective on the first day of Feb¬ ruary, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget In accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. February 1. 1951. Appendix A C. P. R. No. 4 1. The following celling prices, subject to the exceptions set forth In this regulation, are established for anthracite f. o. b. mine: Per Per net ton net ton Broken _ $14. 20 Rice....$6.40 Egg coal... .. 14.45 Barley _ 6. 10 Stove _ __ 14.70 Buckwheat No. Cheatnut . .. 14.60 4 and small- Pea __ .. 11.40 er_ 4. 10 Buckwheat .. 8.00 2. No person subject to this regulation may sell or deliver anthracite produced and prepared by him at celling prices established by paragraph 1 of this Appendix, unless such anthracite meets the quality standards and size specifications set forth In Appendix B hereof; otherwise, the celling prices shall be those set forth In paragraph 3 of this ap¬ pendix. 3. The celling prices for anthracite (includ¬ ing anthracite for which a celling price has been established by any special order Issued under this regulation, or otherwise), which does not meet the quality standards and price specifications set forth In Appendix B hereof, shall be the applicable celling price set forth below: Per Per net ton net ton Broken _ . $13.05 Rice .. $5. 80 Egg - . 13.30 Barley _ 4. 60 8tove _ . 13.56 Buckwheat No. Chestnut .. . 13. 45 4 and small- Pea _ . 10 40 er. 3 70 Buckwheat 7. 30 Note: Persons subject to the regulation shall continue to observe their customary and standard cash discount practices appendix R—Standard Anthracite Specifications Approved and Adopted ry the Anthracite Committee Effective July 28, 1047 Round test mesh, Inches Percent Overslie, maxi mum Under¬ sire, maxi¬ mum Mini- mum Maximum, impurities 1 Slate Bone Ash » Broken. Through 444. 1)4 2 11 Egg. Over 3), to 3. 15 7H. Through 3)4 to 3. 5 1)4 2 11 Stove. Over 2Ms. 15 7 H Through 2Ms. 7)4 2 3 11 Chestnut. Over 144. 15 7)4 Through 154. .. 7h 3 4 11 Pea . Over 'Ms... 15 7)4 Through 141 •. 10 4 5 12 Buckwheat No. 1 . Over Ms. 15 7)4 Through Ms. 10 13 Buckwheat No 2 (Rice) .. Buckwheat No. 3 (Barley). Buckwheat No. 4. Over Ms . 15 7)4 Through Ms.. . 10 13 Over Ms 17 7)4 Through Ms.. 10 15 Over Ma. _.. 20 10 Through 54s.. 20 15 Buckwheat No. 5 Over 444... 30 No limit 10 Through 44«.. 30 16 1 When slate content in the sires from broken to chestnut, Inclusive, Is less than above standards, bone content may be increased by 1)4 times the decrease in the slate oontent under the allowable limits, but slate content specified above shall not be exceeded In any event. A toleranoe of 1 percent is allowed on the maximum percentage of undersire and the maximum percentage of ash oontent. The maximum percentage of undersire is applicable only to anthracite as it is produced at the preparation plant. “Slate” is defined as ary material which has less than 40 percent fixed carbon. “Bone" <s defined as any material which has 40 percent or more, but less than 75 percent fixed carbon. 1 Ash determinations are on a dry basis. ' ■ . A . i FILE following 81 Trans 32:3 Miscellaneous Amendments (5-4-51) 81 Trans 32:5 Ceiling Price Regulation 4 AMENDMENT 1 APRIL 30, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 4, Amendment 1] CPR 4—Anthracite Delivered From Mine or Preparation Plant MISCELLANEOUS AMENDMENTS Pursuant to the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 F. R. 738), this Amendment 1 to CPR 4 is hereby issued. STATEMENT OF CONSIDERATIONS Since Ceiling Price Regulation 4 be¬ came effective on February 1, 1951, it has been found desirable to amend the regulation in recognition of two types of transactions which were prevalent in the industry prior to the establishment of price controls. Approval of these pricing practices does not involve substantial relaxation of price control but does serve to remove an obstacle to selling arrange¬ ments which were followed in the past. The first amendment recognizes a sit¬ uation where a limited number of retail coal dealers had been serving certain customers with a high quality coal in carload lots. Their prices generally were above the mine prices but the cus¬ tomers were willing to pay a higher price for the service offered by the supplier, The amendment recognizes this situa¬ tion and authorizes these retail coal dealers, only in respect to customers they served in this manner during the cal¬ endar year 1950, to continue such prac¬ tice and to add the same mark-up charged during that period. The amendment does not authorize these dealers to extend this service to new cus¬ tomers nor does it permit dealers who had not previously sold coal on this basis to start doing so now. The next amendment recognizes the sales of premium and penalty contracts which, when the coal exceeds a certain quality, entitles the seller to premium compensation. This amendment au¬ thorizes the seller to demand and re¬ ceive this additional compensation which would otherwise result in a price above the ceiling price established un¬ der the regulation. This type of con¬ tract is well recognized in the industry and is desired by consumers since it re¬ sults in higher quality fuel. Further¬ more, the regulation permits new con¬ tracts of this type and permits new sell¬ ers to sell coal under this arrangement provided the terms are reasonable and are in line with other similar contracts. The last amendment spells out in de¬ tail the records and data which must be preserved and kept available for inspec¬ tion. AMENDATORY PROVISIONS Ceiling Price Regulation 4 is hereby amended, as follows: 1. Section 3 is amended by adding thereto the following paragraphs (d) and (e). (d) Notwithstanding anything to the contrary contained herein, retail coal dealers who during the calendar year 1950 acted as a distributor by purchasing coal from a mine or mines and resold such coal to certain consumers during the calendar year 1950, at a price cal¬ culated by adding a service charge to the f. o. b. mine price of the coal, said retail coal dealers acting as distributors may continue to sell and ship coal directly from a mine to each such consumer at a price calculated by adding a service charge no higher than the highest serv¬ ice charge said retail dealer charged each such consumer during the calendar year 1950 to the f. o. b. mine price of the coal which he buys and ships to each said consumer: Provided, Said retail coal dealer acting as a distributor shall file, by letter, with the Solid Fuels Branch of the Office of Price Stabilization, Wash¬ ington 25, D. C., a statement showing the name and address of each such customer and the amount of the highest mark-up used in sales of coal during the calendar year 1950 to each such customer. This statement shall be filed by letter prior to the sale and shipment of any coal in¬ tended to be priced under this paragraph. (e) Notwithstanding any provision to the contrary, a producer or distributor may sell and deliver or contract to sell and deliver, anthracite coal pursuant to a bona fide written contract which con¬ tains a premium and penalty provision based upon the specifications of such coal, and may demand and receive com¬ pensation in an amount per ton, in ad¬ dition to the ceiling price provided by said contract: Provided, however, That the basic price contained in such con¬ tract does not exceed the ceiling price established under this regulation and in effect at the time of delivery: And pro¬ vided further, That the terms of such premium and penalty provisions are rea¬ sonable and are not more favorable to the producer or distributor than pre¬ mium and penalty provisions contained in similar contracts of the producer or other producers or distributor or other distributors in effect January 25, 1951. 2. Section 12 (a) is hereby amended to read as follows: (a) Each producer and distributor shall make and keep available for inspection all records showing the price or prices per ton f. o. b. the mine at which he sold and delivered or offered to sell and de¬ liver anthracite coal after February 1, 1951, which records shall contain infor¬ mation, when pertinent, regarding qual¬ ity standards, size specifications and other information necessary to deter¬ mine whether the prices charged are in compliance with the ceiling prices estab¬ lished under this regulation. There shall also be maintained and kept available for inspection all records showing the prices charged for special services during the month of January 1951, or if there were rio such charges made during that month, the nearest month prior thereto, together with data revealing the type of special services and fihe occasions for rendering such services or making pocket charges; and there shall also be maintained and kept available for inspection records showing transportation charges and taxes added to the prices charged after February 1, 1951. The Director may re¬ quire the maintenance and preservation of such other records as he deems neces¬ sary in order to effectuate this regula¬ tion. Effective date: The above amendments shall become effective as of February 1, 1951. Note. The record-keeping and reporting requirements of the amendatory provisions of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. April 30, 1951. • . - a % m FILE following 81 Trans 32:5 (8-21-51) 81 Trans 32:7 Reporting of Service Ceiling Price Regulation 4 and Pocket Charges Amendment 2 AUGUST 20, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter ill—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Celling Price Regulation 4, Arndt. 2] CPR 4—Anthracite Delivered From Mine or Preparation Plant REPORTING OF SERVICES AND POCKET CHARGES Pursuant to the Defense Production Act of 1950 as amended, Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Amendment 2 to Ceiling Price Regulation 4 is hereby issued. STATEMENT OF CONSIDERATIONS Charges made by the producer of an¬ thracite coal for special services and pocket charges may, under section 8 of Ceiling Price Regulation 4 be added to the applicable ceiling price of the coal so serviced. No reporting or filing of these services or the charges made there¬ for hsis been required by the regulation. Many of these services—such as cal¬ cium chloride treatment, oil treatment, specially prepared sizes, split cars (con¬ taining more than one size), partitions, box-car loading, truck loading from pockets at the mines, bags and bagging, and the making of local or retail deliv¬ eries from the mine or adjunct prepara¬ tion plant—have been rendered for some time and many new services which are performed have basic similarities. In order to effectuate the purposes of the Defense Production Act of 1950, it is deemed necessary that the Office of Pric Stabilization receive sufficient informa tion so as to ascertain that the charges made for the services being rendered are proper under the provisions of the regu¬ lation. Many services are seasonal and some services were not performed during the base period. The information required by this amendment will allow the Office of Price Stabilization to formulate a fair and equitable amendment under which proposed charges for new services could be processed. In order to obtain this information, it is necessary that the producers of an¬ thracite and briquets rendering services as described, or making pocket charges, report the type of services rendered, the method of performing these services, and the prices charged therefor. This amendment is not intended to modify in any way the provisions of Ceil¬ ing Price Regulation 4 as amended. In the judgment of the Director of Price Stabilization this amendment is generally fair and equitable and is nec¬ essary to effectuate the purposes of Title IV of the Defense Production Act of 1950. AMENDATORY PROVISIONS Ceiling Price Regulation 4 is further amended as follows: 1. Section 8, “Special services’’, is amended as follows: “After the words ‘Section 8, Special services’ and before the words ‘there may be added’, there is inserted the follow¬ ing: ‘(a)’ ”. 2. Section 8 is further amended by the addition of the following: (b) Every producer subject to Ceiling Price Regulation 4, as amended, or Sup¬ plementary Regulation 1 thereto, who has added or does add to the applicable ceiling prices for anthracite or briquets a charge for any special service or pocket charge, pursuant to paragraph (a) of this section, shall file, on or before Sep¬ tember 15, 1951, the following informa¬ tion by letter addressed to the Office of Price Stabilization, Solid Fuels Branch, Washington 25, D. C.: (1) Name and address of the producer reporting; (2) name, number or other designation of the mine or mines, plant or plants, or other facility or facilities at which the special services or pocket charges are made; (3) a full description of the special service or pocket charge made and the equipment, material, or facilities used; and (4) the charges made for such special service or pocket charge.” (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154.) Effective date. This amendment shall become effective August 25, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. August 20, 1951. 1 « . — A 4 I™ . ■ (3-3-52) 81 Trans 32:9 FILE following 81 Trans 32:7 Special Services OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 4 Amendment 3 MAR. 3, 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Celling Price Regulation 4. Arndt. 3] CPR 4—Anthracite Coal Delivered From Mine or Preparation Plant SPECIAL SERVICES Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 3 to Ceiling Price Regulation 4 is hereby issued. STATEMENT OF CONSIDERATIONS Anthracite producers, in many in¬ stances, perform special services for their customers, such as anti-freeze treatment, oil treatment, partitions for split cars, bagging, and loading from pockets for which they make charges in varying amounts. Under the provisions of section 8 of CPR 4 producers may add to the appli¬ cable ceiling prices charges for such spe¬ cial services. However, such charges shall not exceed the charges made for the same service in January 1951 (or if no such charge was made in January 1951, the nearest month prior thereto). This provision, therefore, does not per¬ mit producers performing such services to charge for them if during or prior to January 1951, they did not perform such services. Amendment 2 to CPR 4 requires pro¬ ducers subject to CPR 4 who have added or do add to applicable ceiling prices for anthracite or briquets a charge for any special service or pocket charge, to file such charges with the OPS, Solid Fuels Branch. Sixty-five companies repre¬ senting 87 percent of the industry’s total production for the first six months of 1951 have filed such reports. Generally the charges made are below the actual cost of rendering service. This amendment permits producers of anthracite coal and anthracite briquets to add to the applicable ceiling prices charges for special services which are not offered during the period specified in section 8 (a) of the present regulation. However,' such charges shall be made only after approval by the Director of the Office of Price Stabilization, upon a showing that they are in-line with charges for special services made during the base period. In, the judgment of the Director of Price Stabilization this amendment is generally fair and equitable and is neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. In formulating this amendment the Director has consulted with industry rep¬ resentatives, including trade association representatives, to the extent practicable under the circumstances, and has given consideration to their recommendations. AMENDATORY PROVISIONS Ceiling Price Regulation 4 is amended in the following respect: Section 8 is amended by adding a new paragraph (c) to read as follows: (c) (1) A producer who during the period referred to in paragraph (a) of this section did not perform the special services, including truck loading from pockets at the mines, and who is now7 equipped to perform such services, may file an application for permission to add to the applicable ceiling prices set forth in this part an additional charge for the performance of such services. The ap¬ plication must be filed in duplicate with the Office of Price Stabilization, Solid Fuels Branch, Washington 25, D. C., and shall include (i) the name and address of the producer reporting; (ii) the name, number or other designation of the mine or mines, plant or plants, or other facil¬ ity or facilities at which the special services are to be performed; (iii) a full description of the special service and the equipment, material, or facilities tc be used; and (iv) the charges requested for such special service. (2) Where the application pertains to specially prepared sizes, the information submitted shall show in addition to the information required in subparagraph (1): (i) Size of the coal; (ii) use for which the coal is intended; (iii) special treatment given the coal; (iv) resultant increase in quality above the applicant’s regular commercial preparation and above the quality standards of Appendix B of this regulation; and (v) additional costs incurred by reason of rendering this service. (3) Applications pertaining to pockei charges shall show in addition to the information required in subparagraph (1) that: (i) The mine, preparation plant or ground storage facility involved is rail-connected and equipped to load trucks from pockets other than railroad car pockets, and to weigh anthracite on retail scales; (ii) the anthracite loaded in trucks meets the quality standards set forth in Appendix B of CPR 4, as amend¬ ed; (iii) additional costs are incurred b? reason of rendering this service; (iv) the anthracite loaded from pockets is for delivery entirely by truck without inter¬ vening rail shipment. The application may be approved, in whole or in part, by the Director of Price Stabilization or by any official of the Office of Price Stabilization having au¬ thority to act on such application if he finds that such charge is in line with the level of those allowed in paragraph (a) of this section for similar services. The Director may require any additional in¬ formation that he deems necessary for proper determination of the application. No charge shall be made for such service or pocket charge until approved by the Director of Price Stabilization or an offi¬ cial of the OPS having authority to act on the application. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective March 8, 1952. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Ellis Arnall, Director of Price Stabilization. March 3, 1952. . FILE following 81 Trans 32:9 (8-12-52) 81 Trans 32:11 Adjustment on Certain Sizes Ceiling Price Regulation 4 (Amending Appendix A) Amendment 4 AUG. 12, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 4, Arndt. 4[ CPR 4—Anthracite Delivered Prom Mine or Preparation Plant ADJUSTMENTS ON CERTAIN SIZES Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 4 to Ceiling Price Regulation 4 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment increases ceiling prices of certain industrial sizes of Pennsylvania anthracite by 75 cents per net ton f. o. b. mines. These increases apply only to No. 1 Buckwheat, Rice, Barley, and Buckwheat No. 4 and smaller sizes, all of which represent about 45 per¬ cent of total sales of anthracite. Members of the Industry Advisory Committee requested this increase and contended that it was justified under the industry earnings standard. In order to qualify for a price increase under that standard, an industry must show that its current earnings are less than 85 percent of the industry’s average earnings during the three best years during the 1946-1949 period. The Office of Price Stabilization has made a study of the anthracite in¬ dustry, on the basis of which it appears that the requested price increase is jus¬ tified under the earnings standard. The larger or domestic sizes of anthra¬ cite are used mostly for home heating by consumers in New England, New York, Pennsylvania, Delaware, Maryland, and the District of Columbia. Industrial us¬ ers account for most of the sales of the smaller sizes, which are used primarily for the production of electricity in power plants and as metallurgical coals. When CPR 4 was issued it granted cer¬ tain increases on the larger sizes of an¬ thracite greater than those granted on industrial sizes. Thus, in following the recommendation of the Industry Advis¬ ory Committee that the present price in¬ creases be uniformly applied to the in¬ dustrial sizes rather than on the domes¬ tic consumer sizes, OPS is not only mini¬ mizing the impact on the cost of living, it is also bringing ceiling prices on the commercial sizes into a more customary relationship with the ceiling prices on the domestic sizes. In the formulation of this amendment, there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, and considera¬ tion has been given to their recom¬ mendations. This consultation included a meeting of the Industry Advisory Committee for Anthracite, and separate conferences with several producers of anthracite. So far as practicable, the Director of Price Stabilization gave due consider¬ ation to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, as amended, and to relevant factors of general applicability. In the judgment of the Director of Price Stabilization this amendment is generally fair and equitable and is neces¬ sary. to effectuate the purposes of Title IV of the Defense Production Act of 1950. AMENDATORY PROVISIONS 1. The ceiling prices in Appendix A, provision 1, are amended by an increase of 75-cents per net ton on commercial sizes so that provision 1 of Appendix A will read as follows: 1. The following celling prices, subject to the exceptions set forth in this regulation, are established for anthracite f. o. b. mine: Per net Per net ton ton Broken_ _$14.20 Buckwheat._ $8. 75 Kpip coal . 14.45 Rice__ 7.16 Stove_ . 14.70 Barley _ 5.85 Chestnut. ... 14.60 Buckwheat Pea_ . . 11.40 No. 4 and smaller_ 4. 85 2. The celling prices for “sub-standard” anthracite in Appendix A, provision 3, are amended by an Increase of 75 cents per net ton on commercial sizes so that provision 3 of Appendix A will read as follows: 3. The celling prices for anthracite (In¬ cluding anthracite for which a celling price has been established by any special order Issued under this regulation, or otherwise), which does not meet the quality standards and price specifications set forth in Appen¬ dix B hereof, shall be the applicable celling price set forth below: Per net Per net ton ton Broken_ $13. 05 Buckwheat._ $8.05 Egg coal- 13.30 Rice_ _ 6. 55 Stove C_ 13. 55 Barley__ 5. 35 Chestnut_ 13.45 Buckwheat Pea. . .. ... 10.40 No. 4 and smaller_ 4. 45 (Sec. 704, 64 Stat. 816, as amended, 50 U. S. C. App. Sup. 2154) Effective date. This amendment 4 to CPR 4 shall become effective August 12, 1952. Ellis Arnall, Director of Price Stabilization. August 12, 1952. ' > . . * «■ ' . >■ • Jfl■ • ; ■ ifl ' FILE following 81 Trans 32:11) (10-6-52) 81 Trans 32:13 Adjustments on All Sizes (Amending Apps. A and B) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 4 Amendment 5 OCT. 3. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 4. Arndt. 5] CFR 4—Anthracite Delivered Prom Mute or Preparation Plant ADJUSTMENTS ON ALL SIZES Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161 and Economic Stabilization Agency General Order No. 2, this Amendment 5 to Ceiling Price Regula¬ tion 4 is hereby issued. statement of considerations This amendment increases the ceiling prices on all sizes of Anthracite by 20 cents per net ton f. o. b. the mines. The increase has been requested by the an¬ thracite industry because of the interim agreement reached between the Inter¬ national Union of United Mine Workers of America, and the anthracite pro¬ ducers increasing the amount which the producers must pay to the Anthracite Health and Welfare Fund from 30 cents to 50 cents per net ton. The Wage Sta¬ bilization Board has advised the Union and the industry that “prior Board ap¬ proval is not required before the affected employers may increase their contribu¬ tions to the Anthracite Health and Welfare Fund from 30* per ton to 50* per ton, provided that such increase in contributions is necessary to maintain the level of benefits prevailing on Jan¬ uary 25, 1951. Any increase in benefit levels or the institution of additional benefits requires Board approval.” Increases in the ceiling prices for some sizes of anthracite were recently author¬ ized by the Office of Price Stabilization in Amendment 4. The increase authorized by that amendment was intended to per¬ mit the industry to recover substantially the amount to which it was entitled un¬ der the Industry Earnings Standard. On the basis of the industry earnings sur¬ vey, and information received for the period January-July, 1952, this industry has demonstrated that the need for re¬ lief is immediate. So as not to delay this relief, the Agency is permitting an increase generally sufficient to cover the amount of increase in the welfare fund agreement. If the anthracite industry demonstrates that there is need for fur¬ ther relief so as to bring the level of the earnings of the industry up to the 85% level warranted by the Industry Stand¬ ard, the Agency will take whatever action is deemed appropriate. So far as practicable, the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, as amended, and to relevant factors of general applicability. In the judgment of the Director of Price Stabilization this amendment is generally fair and equitable and is nec¬ essary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. In the formulation of this amendment, there has been consultation with indus¬ try representatives, including trade asso¬ ciation representatives, and considera¬ tion has been given to their recommen¬ dations. AMENDATORY PROVISIONS 1. The ceiling prices in Appendix A, provision 1, as amended, are further amended by an increase of 20 cents per net ton on all sizes so that provision 1 to Appendix A will read as follows: 1. The following ceiling prices, subject to the exceptions set forth in this regu¬ lation, are established for Anthracite f. o. b. mine: Per net ton Broken_$14. 40 Egg coal_ 14. 66 Stove_ 14. 90 Chestnut_ 14. 80 Pea_ 11. 60 No. 1 Buckwheat_ 8. 95 Rice_ 7. 35 Barley_ 6. 05 Buckwheat No. 4 and smaller_ 5.05 2. The ceiling prices for “sub-stand¬ ard” anthracite in Appendix A, provision 3, as amended,, are further amended by an increase of 20 cents per net ton on all sizes so that provision 3 of Appendix A will read as follows: 3. The ceiling prices for anthracite (in¬ cluding anthracite for which a ceiling price has been established by any special order issued under this regulation, or otherwise), which does not meet the quality standards and price specifications set forth in Appendix B hereof, shall be the applicable ceiling price set forth below: Per net ton Broken_ $13. 25 Egg coal_ 13. 50 Stove_ 13. 75 Chestnut_ 13. 65 Pea.. 10. 60 No. 1 Buckwheat_ 8. 25 Rice._ 6. 75 Barley_ 6. 56 Buckwheat No. 4 and smaller_ 4. 65 (Sec. 704, 64 Stat. 816, as amended, 60 U. S. C. App. Supp. 2154) Effective date. This amendment 5 to CPR 4 shall become effective as of October 1, 1952. Tighe E. Woods, Director of Price Stabilization. October 3, 1952. . (11-20-52) 81 Trans 32:15 FILE following 81 Trans 32:13 Adjustments on All Sizes (Amending App. A) Ceiling Price Regulation 4 Amendment 6 NOVEMBER 14, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency 1 Ceiling Price Regulation 4, Arndt. 6] CPR 4—Anthracite Delivered From Mine oh Preparation Plant ADJUSTMENTS ON ALL SIZES Pursuant to the Defense Proauction Act of 1950, as amended. Executive Order 10161 and Economic Stabilization Agen¬ cy General Order No. 2, this Amendment 6 to Ceiling Price Regulation 4 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 4 increases the ceiling prices on all sizes of anthracite by amounts rang¬ ing from 40 cents to $1.35 per net ton, f. o. b. the mines. These increases are necessary to permit the anthracite-pro¬ ducing industry to meet the Industry Earnings Standard. An industry earnings survey of the anthracite-producing industry was made earlier this year at the request of the Anthracite Industry Advisory Commit¬ tee. As a result of the findings of the survey the ceiling prices of the industrial sizes (buckwheat No. 1 and smaller) were adjusted in the amount of 75 cents per ton, becoming effective on August 12, 1952. This interim adjustment did not exhaust the entire amount of entitle¬ ment of the industry under the Industry Earnings Standard. Further study of industry earnings shows that the industry is entitled to an additional price increase averaging 35.5 cents per ton to permit it to meet the industry earnings standard. The in¬ creases provided in this amendment in¬ clude that amount. On October 3, the ceiling prices of all sizes of anthracite were increased in the amount of 20 cents per net ton, reflecting the additional payment into the Anthracite Health and Welfare Fund agreed to by the industry and the United Mine Workers of America. The increase in the welfare payment was in¬ cluded in an interim agreement pending the completioh of negotiations on wage and other matters. On November 1, 1952, the representa¬ tives of the anthracite industry and UMW of A reached an agreement on wage increases to be paid the miners, effective November 16, 1952, as well as further changes in the terms and con¬ ditions of employment. The agreement sets forth in detail a method of apply¬ ing the wage increases which have been granted to employees paid daily and on piece-work rates. The anthracite industry wage agree¬ ment has been submitted to the Wage Stabilization Board for approval and is now being considered by that Agency. An increase of at least $1.50 per day for the anthracite industry, paralleling that already approved for bituminous will be effective retroactive to Novem¬ ber 16, 1952, upon formal approval by the Wage Stabilization Board. Thus the anthracite producers will begin to incur substantially higher production costs be¬ ginning November 16, which the indus¬ try cannot absorb under the Industry Earnings Standard. The increases included in this price action, therefore, reflect the amount to which the industry is entitled under the Industry Earnings Standard including a cost increase based on an average wage increase of $1.50 per day, amounting to a total of $1,047 per net ton. If a higher rate increase is hereafter authorized a further adjustment may be required. Prices on the smaller sizes of anthra¬ cite coal have traditionally been lower than on the larger prepared sizes. This reflects strong competition with other forms of solid fuels and with oil and gas. In order to permit the industry to obtain earnings to which it is entitled under the Industry Earnings Standard, the various sizes of anthracite are being increased by amounts ranging from 40 cents per net ton on buckwheat Nos. 4 and 5 and smaller to $1.35 on broken size. So far as practicable, the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, as amended, and to relevant factors of general applicability. In the judgment of the Director of Price Stabilization this amendment is generally fair and equitable and is neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act, as amended. In the formulation of this amendment, there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, and considera¬ tion has been given to their recommen¬ dations. AMENDATORY PROVISIONS 1. The ceiling prices in Appendix A, provision 1, as amended, are further amended by an increase on all sizes so that provision 1 to Appendix A will read as follows: 1. The following celling prices, subject to the exceptions set forth In this regulation, are established for Anthracite f. o. b. mine: Per net ton Broken_$15. 75 Egg- 16. 00 Stove_ 16. 25 Chestnut_ 16. 15 Pea__i,_ 12. 85 Buckwheat No. li___ 10.10 Rice_ 8. 35 Barley_ 6. 55 Buckwheat No. 4 and smaller_ 5. 45 2. The ceiling prices for “sub-stand¬ ard” anthracite in Appendix A, provision 3, as amended, are further amended by an increase on all sizes so that provision 3 of Appendix A will read as follows: 3. The celling prices for anthracite (in¬ cluding anthracite for which a celling price has been established by any special order Issued under this regulation, or otherwise), which does not meet the quality standards and price specifications set forth In Ap¬ pendix B hereof, shall be the applicable cell¬ ing price set forth below: Per net ton Broken_ $14. 60 Egg.... 14. 85 Stove_ 15.10 Chestnut_ 15.00 Pea_ 11.85 Buckwheat No. 1_ 9. 40 Rice__ 7. 75 Barley_ 6. 05 Buckwheat No. 4 and smaller_ 5.05 (Sec. 704, 64 Stat. 816, as amended. 50 U. S. C. App. Sup. 2154) Effective date. This amendment 6 to CPR 4 shall become effective November 16, 1952. Joseph H. Freehill, Acting Director of Price Stabilization. November 14, 1952. - . M -* ?Z f . ■ ' * ' . I 81 Trans 32:301 Ceiling Price Regulation 4 Supplementary Regulation 1 MARCH 3, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 4, Supplementary Regulation 1] CPR 4—Anthracite Delivered Prom Mine or Preparation Plant SR 1—ANTHRACITE BRIQUETS PRODUCED AT OR MADE AT PLANTS IN PENNSYLVANIA ANTHRACITE FIELD Pursuant to the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105) and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 P. R. 738), this Sup¬ plementary Regulation No. 1 to Ceiling Price Regulation No. 4 (16 F. R. 1011) is hereby issued. STATEMENT OF CONSIDERATIONS Anthracite briquet manufacturing plants are located in the Anthracite Re¬ gion of Pennsylvania. For the most part these plants are adjuncts of anthracite preparation plants. The product, a domestic fuel, consists of 80 percent anthracite, 7 to 8 percent asphalt as a binder, and 12-13 percent bituminous coal. Total production of anthracite bri¬ quets in 1950 was 359,000 net tons. The product is made in one size and sold at one price. Cost increases over January 1, 1951, have resulted from the new wage agree¬ ment with U. M. W. A. negotiated Janu¬ ary 26, 1951. Material costs, principally anthracite and bituminous coal, have advanced pursuant to the authority of Ceiling Price Regulations Nos. 3 and 4 made effective on February 1, 1951. As¬ phalt, the third principal ingredient, has advanced sharply in price since 1950. The labor increase amounts to $0.1731 per net ton, Social Security and old age benefits $0.0095, materials $0.4095, or a total cost increase of $0.5921 per ton, which practically eliminates the $0.64 net income per ton before taxes realized on the entire 1950 business. This supplementary regulation is in¬ tended to offset the actual cost increase cited above. FINDINGS OF DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the provisions of Sup¬ plementary Regulation No. 1 to Ceiling Price Regulation No. 4 are generally fair and equitable and are necessary to effec¬ tuate the purposes of Title IV of the De¬ fense Production Act of 1950. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Produc¬ tion Act of 1950; to prices prevailing dur¬ ing the period from May 24, 1950, to June 24, 1950, inclusive and to relevant factors of general applicability. In formulating this supplementary regulation the Director has consulted with representatives of the industry to the extent practicable under the circum¬ stances, and has given consideration to their recommendations. REGULATORY PROVISIONS Sec. 1. Applicability of supplementary regula¬ tion. 2. Definitions. 3. Authority to Increase ceiling prices. 4. Miscellaneous. Authority: Sections 1 to 4 Issued under sec. 704, Pub. Law 774, 81st Cong. Inter¬ pret, or apply Title IV, Pub. Law 774, 81st Cong., Executive Order 10161, September 9, 1960, 15 P. R. 6105, 3 CFR, 1950 Supp. Section 1. Applicability of supplemen¬ tary regulation. This supplementary regulation grants authority to a person engaged in the business of manufactur¬ ing briquets, made principally from an¬ thracite coal, located in the Pennsyl¬ vania anthracite field to increase the ceiling price on briquets sold by them, or their agents, f. o. b. the plant. Sec. 2. Definitions. When used in this supplementary regulation, the term: (a) “Producer” means a person en¬ gaged in the business of manufacturing briquets, principally from anthracite coal, and any person acting as an agent of a producer. (b) “Distributor” means a person who purchases briquets at or for delivery from a briquet plant, for resale, and resells the same in not less than cargo or railroad carload lots, or the equivalent thereof, without physically handling such briquets, and any person acting as an agent of such distributor in the sale of briquets. (c) “Briquets” means briquets made principally from anthracite coal, which are manufactured at plants located in the Pennsylvania anthracite field. (d) “Ground storage facility” means a storage facility not operated as an ad¬ junct of a briquet plant, which is cus¬ tomarily used by a producer or distribu¬ tor for storage of briquets in transit from a briquet plant to a purchaser. Sec. 3. Prohibition against selling or delivering anthracite briquets at prices above the ceiling. On and after the 3d day of March 1951, regardless of any contract, agreement, lease, or other obligation: (a) No person who is a producer or distributor shall sell, dispose, deliver, or ship anthracite briquets from a briquet plant at prices higher, f. o. b. the plant, than the ceiling price set forth in Appen¬ dix A, attached hereto and by this refer¬ ence made a part hereof. (b) No person shall, in the course of trade or business, buy or receive anthra¬ cite briquets so delivered or shipped at a price higher than the ceiling price set forth in Appendix A, attached hereto and by this reference made a part hereof. (c) No person shall agree, offer, solicit, or attempt to do anything pro¬ hibited under this supplementary regu¬ lation. Sec. 4. Miscellaneous, (a) The pro¬ ducers subject to this supplementary regulation shall be subject to all other provisions of Ceiling Price Regulation No. 4 which are not inconsistent with the provisions hereof. (b) Each producer, sales agent or dis¬ tributor shall furnish to each retail coal dealer to whom he sells briquets a state¬ ment showing the exact dollar-and- cents amount the producer has added to the price of his briquets as authorized under this supplementary regulation. (c) Upon the effective date of this Supplementary Regulation No. 1 to Ceil¬ ing Price Regulation No. 4 the producers subject to this supplementary regulation shall no longer be subject to the provi¬ sions of the General Ceiling Price Regu¬ lation issued by the Director on January 26, 1951 (16 F. R. 809), except as to ac¬ tivities not covered by this supplemen¬ tary regulation. Such exemption, how¬ ever, shall not relieve the producers hereunder from any obligation or lia¬ bility incurred under the General Ceiling Price Regulation prior to the effective date of this supplementary regulation. Effective date. This Supplementary Regulation No. 1 to Ceiling Price Regu¬ lation No. 4 shall become effective on the 3d day of March 1951. Michael V. DiSalle, Director of Price Stabilization. March 2, 1951. Appendix A The following ceiling price subject to the exceptions set forth in this supplementary regulation are established for anthracite bri¬ quets, f. o. b. manufacturing plants. Ceiling price per net ton Anthracite briquets-$10.95 Note: Persons subject to the regulation shall continue to observe their customary and standard cash discount practices. GPO—SSO—6513 i * . V” FILE following 81 Trans 32:301 (12-1-52) 81 Irans 32:303 Adjustment of Ceiling Price' Anthracite Briquets (Amending Appendix A) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 4 Supplementary Regulation 1 Amendment 1 NOVEMBER 28. 19S2 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Celling Price Regulation 4, Supplementary Regulation 1, Arndt. 1] CPR 4—Anthracite Delivered From Mine or Preparation Plant SR 1—Anthracite Briquets Produced at or Made at Plants in Pennsylvania Anthracite Field adjustment or ceiling prices Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161 and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 1 to SR 1 to CPR 4, Is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Supplementary Regulation 1 adjusts the ceiling price of anthracite briquets by an amount which has been shown to be required under the Industry Earnings Standard. Anthracite briquets are manufactured by two single-line companies operating in the anthracite coal field. Both com¬ panies have submitted a petition for amendement to the Office of Price Sta¬ bilization requesting relief under the Industry Earnings Standard. This standard requires that an industry whose current earnings are less than 85 percent of its average earnings during the three best years 1946-1949, with adjustments made for any changes in the net worth, is entitled to have its ceiling prices ad¬ justed so as to permit it to earn at least 85 percent of its average during the base period. A survey of the anthracite briquet in¬ dustry was conducted by this office and, as of the end of 1951, the industry’s earn¬ ings indicated that it was entitled to re¬ lief. Since the end of 1951 there have been various increases in the costs of raw materials (anthracite, bituminous coal and asphalt). The available in¬ formation indicates that the industry is entitled to an increase of one dollar in its celling price. This adjustment will increase the celling price of anthracite briquets to $11.95 per ton, f. o. b. the plant. In the Judgment of the Director of the Office of Price Stabilization, this amend¬ ment is generally fair and equitable and will effectuate the purpose of Title IV of the Defense Production Act of 1950, as amended. As far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, as amended, and to relevant factors of general applicability. In the formulation of this amendment there has been consultation with indus¬ try representatives, including trade asso¬ ciation representatives, to the extent practicable, and consideration has been given to their recommendations. AMENDATORY PROVISIONS Supplementary Regulation 1 to CPR 4 is amended in the following respect: 1. Appendix A to Supplementary Reg¬ ulation 1 to opr 4, is amended as fol¬ lows: Appendix A The following celling price subject to the exceptions set forth In this supplementary regulation Is established for anthracite briquets, f. o. b. manufacturing plants. Ceiling price per net ton Anthracite briquets_$11.95 Note: Persons subject to the regulation shall continue to observe their customary and standard cash discount practices. (Sec. 704, 64 8tat 8l« as amended, 50 U. S. C. App. Sup. 3164) Effective date. This amendment 1 to SR 1, CPR 4 shall become effective No¬ vember 28, 1952. Tiohe E. Woods, Director of Price Stabilization. November 28, 1952. - ■ JV: • U- - V, - T*iv - ' FILE following 81 Trans 32:301 (4-9-51) Retail Ceilings on Petroleum Products OFFICE OF PRICE STABILIZATION WASHINGTON 81 Trans 33:1 Ceiling Price Regulation 13 MARCH 21, 1951 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 13] CPR 13—Retail Ceilings on Petroleum Products Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 P. R. 738), this Ceiling Price Regulation 13 is hereby issued. STATEMENT OF CONSIDERATIONS The rapidity with which the infla¬ tionary pressures incident to the out¬ break in Korea and the announced stepped up rearmament program were being reflected in price increases throughout the economy during the lat¬ ter part of 1950 required immediate ac¬ tion in the field of direct controls. Ac¬ cordingly, a General Ceiling Price Reg¬ ulation was issued on January 26, 1951. However, it was realized at the time that a single regulation covering a mul¬ titude of prices and the diverse prac¬ tices of many sellers and industries should be replaced as rapidly as pos¬ sible by specific regulations tailored to the needs of different industries. This regulation is one of several designed to cover all marketing segments and products of the petroleum industry. It provides for the establishment of ceil¬ ing prices for certain petroleum prod¬ ucts at service stations and other retail establishments. Petroleum products are distributed at the retail level mainly through service stations of which there are an estimated 400,000 throughout the United States. Generally speaking, these service sta¬ tions are relatively small establishments, and it is therefore essential that any regulation attempting to control the prices of products distributed through these channels be as clear and concise as possible and readily understandable. It is believed that the subject regula¬ tion accomplishes this purpose. The salient features of this regulation are concerned principally with the pric¬ ing methods. The individual seller de¬ termines his own ceiling price which is the highest price charged for a product during the base period of December 19, 1950, to January 25,1951, inclusive. This will result essentially in margins which ; have existed since before the beginning of the Korean war. In the event the seller had no base period sales, alterna¬ tive methods of determining ceiling prices are prpvided. The regulation also pro¬ vides for establishing ceiling prices for new products, as well as in cases where a new retail outlet has been established or where a change of ownership takes place. The administrative procedure for re¬ solving problems that may arise has been greatly simplified in that it contains pro¬ visions for automatic partial relief of hardship cases and permits the solution of other problems at the regional level with the exception of those arising out of local shortages and depressed price areas. Sellers whose ceiling price re¬ sults in a margin less than they enjoyed during the base period or four cents are permitted to adjust their ceiling prices to reflect either their base period margins or four cents per gallon. This provision has been included to give immediate par¬ tial relief to dealers in certain areas where depressed prices exist causing con¬ siderable hardship on dealers involved. According to figures furnished by the American Petroleum Institute of dealer margins in fifty representative cities, this four cent margin is the lowest margin existing during the selected base period at any of these points. Except for cities in which price wars exist the margins are no greater than those in the period immediately before the beginning of the Korean war. The adoption of this mar¬ gin provision is tentative pending a more complete survey of area margins by the Office of Price Stabilization. The regu¬ lation treats all marketers equally, and tends to preserve the customary market¬ ing practices insofar as they are conso¬ nant with the provisions of the Defense Production Act. The regulation attempts to keep to a minimum the work of record keeping. Prior to the formulation of this regu¬ lation the Director of Price Stabilization advised with a large number of persons representing a substantial part of the industry and the regulation has been re¬ viewed by the National Petroleum Ad¬ visory Committee established by the Di¬ rector of the Office of Price Stabilization. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the ceiling prices established by this regulation are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in .furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; and to relevant fac¬ tors of general applicability. REGULATORY PROVISIONS SCOPE OF REGULATION Sec. 1. What this regulation does. 2. Geographical coverage. 3. Compliance with this regulation re¬ quired. PRICING METHOD 4. Specific prices. 5. Base period sales. 6. No base period sales. 7. Group pricing. 8. Special pricing methods for automotive gasoline for tank wagon purchasers. 9. Special pricing methods for automotive gasoline not purchased at the tank wagon price-level. 10. Increases and reductions In celling prices. GENERAL PROVISIONS 11. Federal and State taxes. 12. Records, receipts, statement and posting of celling prices. 13. Transfer of business or stock In trade. 14. Definitions. 15. Petitions for amendment. 16. Adjustments because of Fair Trade Acts. 17. Applications for adjustment. CEILING PRICES ESTABLISHED BY APPLICATION 18. Sellers who cannot determine celling prices under other sections. Authority: Sections 1 to 18 issued under sec. 704, Pub. Law 774, 81st Cong. Interpret or apply Title IV, Pub. Law 774, 81st Cong., E. O. 10161, Sept. 9, 1950, 15 F. R. 6105. SCOPE OF REGULATION Section 1. What this regulation does. It establishes ceiling prices for all sales and deliveries at service stations and other retail establishments including transactions through stationary retail facilities which are in conjunction with bulk plants, terminals or refineries, of the following products: (a) Motor Fuel. (b) Motor Lubricating Oil, including automotive, aviation and marine. (c) Greases. (d) Gear Oils and Transmission Lu¬ bricants. (e) Kerosene, Range Oil, Stove Oil or Heater Oils; all other distillate burning, heating and fuel oils. (f) Stove and Lamp Gasoline and Pressure Appliance Fuel. (g) Petroleum Naphthas and Solvents. (h) Liquefied Petroleum Gas (L. P. G.). Sec. 2. Geographical coverage. This regulation is applicable to the forty- eight States of the United States, the District of Columbia, and the territories and possessions of the United States, except the Panama Canal Zone. Sec. 3. Compliance with this regula¬ tion required—(a) Prohibition against selling or delivery of petroleum products at prices above the ceiling. On and after the effective date of this regulation, re¬ gardless of any contract or other obli¬ gation, no person shall sell or deliver and no person shall buy or receive in the course of trade or business any petro¬ leum product covered by this regulation at prices higher than the ceiling prices fixed by this regulation, and no person shall agree, offer, solicit, or attempt to do anything prohibited in this section. Prices lower than the ceiling prices may be charged, demanded, paid or offered. (b) Evasion. The ceiling prices es¬ tablished by this regulation shall not be evaded either by direct or indirect methods in connection with the pur¬ chase, sale, delivery or transfer of pe¬ troleum products alone or in conjunction with any other materials, or by way of any commission, service, transportation, or any other charge, or discount, pre¬ mium or other privilege, or by tie in agreement or other trade understanding, or by a change in the quality of the product or otherwise, except when such change in quality takes place in com¬ pliance with a regulation issued by an agency of the United States Government. (c) Enforcement. Any person who violates any provision of this regulation is subject to the criminal penalties, civil enforcement actions, and suits for dam¬ age provided for by the Defense Pro¬ duction Act of 1950. PRICING METHODS Sec. 4. Specific prices. If the Office of Price Stabilization establishes specific ceiling prices for a particular grade of product for the area or community in which you are located, then those prices so spelled out in this regulation or other regulations or orders issued pursuant thereto are your ceiling prices for the particular grade (or grades) of product. Sec. 5. Base period sales. If no specific ceiling prices are established by the Office of Price Stabilization, then your ceiling price is the highest price you charged for each grade of product to a purchaser of the same class at each of the service stations or retail establish¬ ments you operated during the period from December 19, 1950, to January 25, 1951, inclusive. Sec. 6. No base period sales. If you cannot determine your ceiling prices under section 4 or section 5 of this regu¬ lation, you are required to adopt the ceil¬ ing price for the grade of product in¬ volved of any seller of your class located within a radius of one mile. Sec. 7. Group pricing. If you oper¬ ated several service stations or retail es¬ tablishments and had an established practice of centrally determining uni¬ form prices by areas during the base period for some or all of your products, you may treat all retail establishments in each such customary separate price area as one seller for the purpose of (a) computing ceiling prices for the grades of products for which this practice ex¬ isted and (b) complying with the record keeping, reporting and filing provisions of this regulation. The ceiling prices shall be the uniform-centrally deter¬ mined prices for each separate price area. Records shall be centrally kept, listing the names and addresses of the retail establishments of each group. If you determine ceiling prices under this section, each retail outlet included in the group must continue to abide by the ceil¬ ing prices determined under this section. The permission granted by this section may be withdrawn by the Director of Price Stabilization from any sellers upon consideration of the price records main¬ tained by such sellers and such reports as he may require. Sec. 8. Special pricing methods for automotive gasoline for tank wagon purchasers, (a) A seller of automotive gasoline at a retail establishment may, if he chooses, fix a ceiling price for each grade of automotive gasoline by either of the following methods: (1) By adding to the tank wagon ceiling price for regular grade gasoline of your supplier 4 cents per gallon plus or minus your customary retail differen¬ tial for premium or third grade gasoline; or (b) For purpose of computing mar¬ gins, the tank wagon ceiling price of the supplying company shall be considered the purchase price with respect to com¬ pany operated retail establishments de¬ termining ceilings under this section. Sec. 9. Special pricing methods for automotive gasoline not purchased at the tank wagon price level. If you are not a tank wagon purchaser of auto¬ motive gasoline at the retail establish¬ ment involved, and therefore, cannot use the margins permitted certain tank wagon purchasers under the preceding section, you may fix a ceiling price for each grade of automotive gasoline by either of the following methods: (2) By adding to the tank wagon ceiling price for regular grade gasoline of your supplier the margin you had in the base period. This method of pricing can be used only if 50 percent of your sales during the base period reflected that margin. Furthermore, you must continue to use this ceiling unless a change in ceiling price is subsequently ordered by the Office of Price Stabiliza¬ tion and you must file this price with the District office of the Office of Price Stabilization for the District in which each retail establishment is located. Your filing should be as follows: (a) By adding to your current laid down cost 4 cents per gallon for regular grade gasoline, plus or minus your cus¬ tomary retail differentials for premium or third grade gasoline; or (b) By adding to your current laid down cost the margin you had in the base period. This method of pricing can be used only if 50 percent of your sales during the base period reflected that margin. Furthermore, you must con¬ tinue to use this ceiling price unless a change in ceiling price is subsequently ordered by the Office of Price Stabiliza¬ tion, and you must file this price with the District office of the Office of Price Stabilization in which each retail estab¬ lishment is located. Your filing should be as follows: I have on_(date) determined my ceiling price under section 9 (b) of the Retail Ceiling Price Regulation of Petroleum Products to be the following: Ceiling Price Established: Regular Grade_ _(Brand)_^ per gal. Premium Grade_ _(Brand)_^ per gal. _Grade_ _(Brand)-^ per gal. Computation of ceiling prices: Premium Regular — {Brand) My laid down cost1 on_(date)_ _$ -$ -$ My retail price on same date_ _$ -$ -$ My margins on_ (date)_ _$ My laid down cost_ _$ My margins as above_ _$ My ceiling price_ _$ .$ .$ 1 "Laid down cost” means the cost of the product in your storage tanks. It includes only the cost of the product (including taxes) and transportation expense. For example: If you purchase on a “delivered at destination” basis the delivered price of your supplier is your “laid down cost”. If you purchase on an f. o. b. shipping point basis your laid down cost is your f. o. b. shipping point price plus transportation expense incurred. The transporta¬ tion expense incurred is the amount you pay to the commercial carrier or if a commercial carrier is not utilized the amount you customarily considered as transportation expense, provided, however, such latter amount shall be no higher than the established commercial rate for the shipment Involved. I have on_(date) determined my ceiling price under section 8 (a) (2) of the Retail Ceiling Price Regulation of Petroleum Products to be the following: Ceiling Price Established: Regular Grade_ _(Brand)-<t Per 8a1, Premium Grade_ _(Brand)-per gal. _Grade__ _(Brand)-<f per gal. Computation of ceiling prices: Premium Regular — (Brand) My purchase price 1 on_(date) My retail price on same date- -$ -$ -$ My margins on_ (date)- -$ My present supplier’s tank wagon ceiling price. _ -$ My margins as above- -$ My ceiling price- -• -$ -$ -$ -$ -$ -$ -$ Signature: 1 Purchase price means the net price you pay for a product after giving effect to allowances or discounts you receive, except cash discounts. 81 Trans 33:3 Sec. 10. Increases and reduction in ceiling prices. You may add to your ceiling price the amount of any increase authorized by the Office of Price Stabili¬ zation in the ceiling price of your sup¬ plier. GENERAL PROVISIONS Sec. 11. Federal and State taxes—(a) Taxes in effect during base period. If during the base period you included a tax (either directly or by separate state¬ ment and collection) as a part of your price for a petroleum product, you may include such tax (either directly or by separate statement and collection in the same manner you included such tax in your price during the base period) as a part of any ceiling price established un¬ der this regulation for that product or for a new product you are now selling which is subject to the same tax. (b) Taxes or increases in taxes effec¬ tive after January 25, 1951. Any tax in¬ crease or new tax imposed after January 25, 1951, upon or incident to the sale, de¬ livery or use of any petroleum product covered by this regulation may be col¬ lected by you in addition to the ceiling prices established under this regulation, if you are by law required to collect or pay1 such tax. Sec. 12. Records, receipts, statement and posting of ceiling prices—(a) Rec¬ ords. Every person selling petroleum products subject to this regulation shall: (1) Preserve for examination by the Office of Price Stabilization all your ex¬ isting records relating to the prices which you charged for such petroleum products as you sold during the base pe¬ riod. In addition, you must prepare within 30 days after the effective date of this regulation and preserve a statement of any of your customary allowances, discounts and other price differentials. (2) Keep for a period of two years and make available for examination by the Office of Price Stabilization records of the same kind as you customarily kept, relating to the prices which you charged for such petroleum products as you sold, after January 25, 1951, and the records of the same kind relating to products sold hereafter. (b) Sales slips and receipts. If you have customarily given a purchaser a sales slip, receipt or similar evidence of purchase, you shall continue to do so. Upon request from a purchaser, you shall give the purchaser a receipt show¬ ing the date, your name and address, the kind, grade, and quantity of the petro¬ leum product or products sold and the price received for each product. (c) Statement of ceiling prices. Pre¬ pare within 30 days after the effective date of this regulation on the basis of all available information and records and thereafter keep for examination by the Office of Price Stabilization during ordinary business hours, a statement showing your ceiling prices on each grade of product and the basis on which k you determined such ceiling prices. (d) Posting of ceiling prices. You shall post the ceiling price for each grade of motor fuel and each motor lu¬ bricating oil in a manner plainly visible to and understandable by each pur¬ chaser. Such postings shall be marked “ceiling prices” or “our ceiling”, be¬ neath which shall be marked each grade of the product offered for sale and op¬ posite each grade shall be stated the ceil¬ ing price for that grade. Every person whose ceiling prices are subsequently in¬ creased under sections 4, 10, 11 (b), 16 or 17 pursuant to authorization by the Office of Price Stabilization shall indi¬ cate separately in such postings either for 60 days after such authorization or for so long as the increase remains ef¬ fective, whichever period is shorter, the amount by which the ceiling price of each product was increased and thei fact that such increase was authorized by the Office of Price Stabilization. The postings shall use the following lan¬ guage: "_cents increase per gal¬ lon—approved by the Office of Price Sta¬ bilization effective_date” or any other statement supplying the same information. (e) General Ceiling Price Regulation records. Compliance with the record¬ keeping provisions of this section shall be deemed compliance with the record¬ keeping requirements of the General Ceiling Price Regulation during the pe¬ riod when petroleum products were covered by that regulation. Sec. 13. Transfer of business or stock in trade. This section applies to yehi if: (a) After January 26, 1951 you pur¬ chase or otherwise acquire all or a sub¬ stantial part of the business assets or stock in trade of any business which sells or sold any articles covered by this regu¬ lation at retail; and (b) You carry on the business or con¬ tinue to sell at retail the same type of product as sold by your predecessor; and (c) You carry on the business in a re¬ tail establishment separate from any other retail establishment previously owned or operated by you; and (d) Your predecessor was a seller of your class. If this section applies to you, your ceil¬ ing prices are the same as your prede¬ cessor and your obligation to keep rec¬ ords sufficient to verify such prices shall be the same as those of your predecessor. Your predecessor must either preserve and make available to you or turn over to you all records of transactions before the transfer which you need to comply with this regulation. If either or both paragraphs (a) and (b) of this section apply to you but not paragraphs (c) or (d) of this section you shall adopt the ceiling price for each grade of product of a seller of your class in your same general ar ea. Ceiling prices determinded in this way shall be filed with the Petroleum Branch of the Office of Price Stabilization, Washington 25, D. C., and shall be your ceiling prices until disapproved or revised by the Director of Price Stabilization of the Office of Price Stabilization. Sec. 14. Definitions, (a) “Motor fuel” means liquid fuel used for the propulsion of motor vehicles or motor boats or air¬ craft, including Diesel fuel and liquefied petroleum gas, and including any liquid fuel to which Federal gasoline taxes apply. (b) “Retail establishment” means a store, shop, garage, service station (land or marine) or other stationary place of business at which the major portion of the sales of petroleum products are sold in customary small quantities to con¬ sumers. Any facility making deliveries of fuel into fuel tanks of aircraft at an airport (or other landing area), shall be considered a retail establishment for the purpose of this regulation. (c) “Service Station” means any place of business or part thereof where motor fuel is delivered into the fuel supply tanks of motor vehicles or motor boats. (d) “You.” The pronoun “you” as used in this regulation indicates the per¬ son subject to the regulation.. (e) “Person” includes an individual, corporation, partnership, association, or any other organized group of persons or legal successors and representatives of any of the foregoing, and includes the United States, any agency thereof, any other government or any of its political subdivisions and any agency of any of the foregoing. (f) “Seller of your class” means a seller whose operations in all respects customarily compare with your opera¬ tions in all of the following respects: (1) You both sell comparable prod¬ ucts. (2) You both sell in the same manner through similar facilities. (3) You both sell at comparable price levels. (g) “Purchaser of the same class” re¬ fers to your practice in setting different prices for a product for sales to pur¬ chasers located in different areas or buy¬ ing in different quantities or grades or under different conditions of sale. (h) “Base period” means the period from December 19, 1950, to January 25, 1951, inclusive. (i) “Tank wagon purchaser” means a person purchasing at the tank wagon price. (j) “Tank wagon price” means a par¬ ticular price level customarily estab-' lished by a seller regardless of the type or size of equipment that may be used for making deliveries, as distinguished from the “tank car” price, or other large lot quantity price levels. The tank wagon price is a delivered-at-destina- tion price. Sec. 15. Petitions for amendment. Any person seeking an amendment of this regulation may file a petition for amendment in accordance with the pro¬ visions of Price Procedural Regulation No. 1. Sec. 16. Adjustments because of Fair Trade Acts. Ceiling prices established under this regulation may be adjusted by order of the Office of Price Stabiliza¬ tion in the case of any seller at retail who shows: (a) Either that his ceiling price for any product established under this regu¬ lation is less than the minimum price at which he was lawfully required to sell the product during the base period pur¬ suant to the provisions of a State Fair Trade Act; or that he had been perma¬ nently enjoined by a court from selling the product at less than such minimum price; and also (b) That the product was generally sold at retail during the base period at 81 Trans 33:4 prices no lower than such minimum price within the locality in which his selling establishment is located. In such cases, the ceiling price of the seller will be in¬ creased to such minimum price. Appli¬ cations for adjustment shall be filed in accordance with Price Procedural Regu¬ lation No. 1. Each Regional Director of the Office of Price Stabilization and such District Directors of the Office of Price Stabiliza¬ tion as may be designated by the appro¬ priate Regional Director are hereby authorized to make adjustments or act upon applications for adjustment under this section. Sec. 17. Applications for adjustment. Applications for adjustment for local shortage and depressed price areas shall be filed in Washington, D. C., in accord¬ ance with Price Procedural Regulation No. 1. The Office of Price Stabilization may adjust by order any ceiling price established under this regulation for any seller or group of sellers when it appears: (a) Local shortages. (1) That there exists or threatens to exist in a particu¬ lar locality a shortage in the supply of a petroleum product which aids directly in ^he present defense program or is es¬ sential to a standard of living consistent with the maintenance of the defense program; and (2) That such local shortage will be substantially reduced or eliminated by adjusting the ceiling prices of such seller and of like sellers for such product; and (3) That such adjustment will not create or tend to create a shortage or a need for increase in prices, in another locality, and will effectuate the purposes of the Defense Production Act of 1950. (b) Depressed price areas and price inequities. (1) That due to temporary conditions, a seller has a ceiling price which is lower than a price that would maintain such seller’s customary price relationship with other sellers in the same marketing area or (2) That prices charged for petroleum products in a particular area have cus¬ tomarily followed the pattern of prices in nearby or surrounding areas but due to temporary conditions ceiling prices have been established by this regulation which are below the level of prices which would have prevailed had the area been free to adjust itself to normal conditions. The seller in applying under subpar¬ agraph (1) or subparagraph (2) of this paragraph shall present to the satisfac¬ tion of the Office of Price Stabilization: (i) The basis upon which it is con¬ cluded that the ceiling prices are below normal. (ii) The ceiling prices proposed. (iii) Information showing why the proposed ceiling prices would be normal. (iv) A statement that the proposed ceiling prices will not be above the level of ceiling prices otherwise established by the regulation. CEILING PRICES ESTABLISHED BY APPLICATION Sec. 18. Sellers who cannot determine ceiling prices under other sections, (a) Your ceiling price for a petroleum prod¬ uct sold at a retail establishment which cannot be priced under the other provi¬ sions of this regulation shall be a price in line with the level of ceiling prices es¬ tablished by this regulation and shall be determined in the following manner: You or a person authorized by you shall, prior to making a sale, file with the District Office of the Office of Price Sta¬ bilization for the district in which your retail establishment is located an appli¬ cation for the establishment of a ceiling price, containing the following infor¬ mation: (1) An explanation of the reasons why the product cannot be priced under the other provisions of this regulation. (2) The method by which the proposed ceiling price was calculated. (3) The reasons why such proposed ceiling price is believed to be in line with the level of ceiling prices otherwise es¬ tablished by this regulation. For this purpose information shall be included in the application showing: (i) Ceiling prices for similar products having the same end-use and service¬ ability which are currently sold by you, together with a statement of the cost of each; (ii) Ceiling prices for the same prod¬ uct, or similar products having the same end-use and serviceability, which are sold by others of your same class of sell¬ er in the same or surrounding area. (b) You shall also furnish such addi¬ tional information as the Office of Price Stabilization may require. (c) Upon filing, the proposed price shall be your ceiling price until it is re¬ vised or disapproved by the Office of Price Stabilization. (d) The Office of Price Stabilization may, at any time by notice in writing approve or disapprove or revise ceiling prices filed, proposed, or established un¬ der this section so as to bring them into line with the level of ceiling prices other¬ wise established by this regulation. Effective date. This Ceiling Price Regulation shall become effective on March ^6, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Edward F. Phelps, Jr., Acting Director of Price Stabilization. March 21, 1951. FILE following 81 Trans 33:4 (4-27-51) 81 Trans 33:5 Miscellaneous Ceiling Price Regulation 13 Amendments Amendment 1 APRIL 24, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 13, Amdt. 1] CPR 13—Retail Ceilings on Petroleum Products miscellaneous amendments Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 F. R. 738), this Ceil¬ ing Price Regulation 13, Amdt. 1, is hereby issued. STATEMENT OF CONSIDERATIONS The accompanying amendment to Ceiling Price Regulation 13 clarifies sec¬ tions 8 and 9: The provision of sections 8(1) and 9 (a) permitting 4 cents per gallon to be added to the tank wagon ceiling price for regular grade gasoline of a dealer’s supplier plus or minus the customary re¬ tail differential for premium or third grade gasoline does not reflect the pric¬ ing method used in the territories, since margins are customarily lower than 4 cents in such areas. Such an addition would result in increased prices in these areas. Therefore, it is desirable that the territories and possessions of the United States be excluded from this pricing method. The further purpose of this amend¬ ment is to make it clear that the filing required by section 8 (2) and 9 (b) is to be made within 60 days after the effec¬ tive date of Ceiling Price Regulation 13, or within 15 days after a seller puts this method of pricing into effect. AMENDATORY PROVISIONS Ceiling Price Regulation 13 is amended in the following respects: 1. Section 8 (1) is amended by adding, at the beginning of the sentence, the following: “Except in the territories and possessions of the United States,”. 2. Section 9 (a) is amended by adding, at the beginning of the sentence, the fol¬ lowing: “Except in the territories and possessions of the United States,”. 3. Section 8 (2) is amended by add¬ ing “within 60 days after the effective date of this regulation or within 15 days after you determine your ceiling price by this method” to the last sentence fol¬ lowing the word, “located.” 4. Section 9 (b) is amended by adding “within 60 days after the effective date of this regulation or within 15 days after you determine your ceiling price by this method” to the last sentence following the word, “located.” Effective date. This amendment, ex¬ cept as otherwise herein stated, shall become effective April 30, 1951. Note: The reporting requirements of this amendment have been approved by the Bu¬ reau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director, Office of Price Stabilization. April 24, 1951. I ' < - < < FILE following 81 Trans 33:5 (12-19-52) 81 Trans 33:7 Adjustment of Ceiling Ceiling Price Regulation 13 Prices Due to Changes in Amendment 2 Taxes and Transportation Rates December 19, 1952 (Amending Secs. 8(a). OFFICE OF PRICE STABILIZATION 9(f) and 10; adding Sec. 11(c)) WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 13. Arndt. 2] CPR 13—Retail Ceilings on Petroleum Products ADJUSTMENT OF CEILING PRICES DUE TO CHANGES IN TAXES AND TRANSPORTATION RATES Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amendment 2 to Ceiling Price Regula¬ tion 13 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 13 makes three changes. One change deals with two of the provisions permitting the establishment of ceilings by a formula, another requires reduc¬ tion in ceilings where taxes have been reduced, and the third deals with in¬ creases in transportation rates. Sections 8 and 9 of Ceiling Price Reg¬ ulation 13 permit retail sellers of auto¬ motive gasoline to establish ceiling prices for these products by adding to the cost of product at the time of calculation the gross margin the seller obtained during the base period. However, it was not in¬ tended to permit sellers to repeatedly redetermine their ceiling price by use of these sections. This amendment is de¬ signed to eliminate any confusion as to the proper use of sections 8 and 9. In¬ creases in product cost may be passed through in accordance with section 10 of the regulation, which is specifically designed to maintain customary mar¬ gins. Most of the automotive gasoline pur¬ chased by service stations in this country is bought on a delivered basis, at what is termed the tank wagon, price. The tank wagon ceiling price of automotive gaso¬ line is regulated by the provisions of Ceiling Price Regulation 17 which permit an increase in the tank wagon ceiling prices, where there has been an increase in transportation rates. Where the tank wagon ceiling price is properly increased, the retailer may increase his ceiling price by the amount of increase in his sup¬ plier’s ceiling. However, there are some retailers of automotive gasoline who do not purchase at the tank wagon level. These retail sellers of automotive gaso¬ line purchasing at the tank car level or on an f. o. b. basis have been required to absorb increased costs resulting from in¬ creased transportation rates, although they were competing with tank wagon purchasers who can pass on the in¬ creases. This has had a tendency to dis¬ rupt price relationships in some retail marketing areas. The corrective change included in this amendment, permitting an increase in prices, will have compara¬ tively little effect because of the very slight percentage of the total of auto¬ motive gasoline sold to service stations at other than tank wagon level. The third part of this amendment re¬ quires that a retail seller who has a ceil¬ ing price which includes taxes incident to the sale, use or delivery of a petroleum product, reduce his ceiling price by the amount of any reduction in these taxes. Where a tax of this nature is reduced or repealed, this benefit should be passed on to the public upon whom the burden of the tax previously rested. In the formulation of this amendment, there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, to the extent practicable, and consideration has been given to their recommendations. In the judgment of the Director of Price Stabilization, the changes set forth in these amendatory provisions are gen¬ erally fair and equitable and are nec¬ essary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Ceiling Price Regulation 13 is amended in the following respects: 1. The text of section 8 (a) (2) is amended to read as follows: (2) By adding to the tank wagon ceiling price for each grade of gasoline of your supplier the margin you had in the base period. This method of pricing can be used only if 50 percent of your sales during the base period reflected that margin. Having determined ceiling prices by using the base period margin method, you may not again use this method to redetermine your ceiling price. You must file these prices with the Dis¬ trict Office of the Office of Price Sta¬ bilization for the District in which each retail establishment is located. Your filing should be as follows: 2. The text of section 9(b) is amended to read as follows: (b) By adding to your current laid- down cost for each grade of gasoline the margin you had in the base period. This method of pricing can be used only if 50 percent of your sales during the base period reflected that margin. Hav¬ ing determined ceiling prices by using the base period margin method, you may not again use this method for redeter¬ mining your ceiling price. You must file these prices with the District Office of the Office of Price Stabilization for the District in which each retail establish¬ ment is located. Your filing should be as follows: 3. Section 10 is amended to read as follows: Sec. 10. Increases in ceiling prices. (a) You may increase your ceiling price determined in accordance with any of the provisions of this regulation by the amount of increase in the ceiling prices of your supplier which has been author¬ ized by the Office of Price Stabilization. (b) If you are not a tank wagon pur¬ chaser of automotive gasoline and if you incur transportation costs in distribut¬ ing such product at your service stations, you may increase your ceiling prices: (1) By the amount of increase in unit cost of transportation you incur as a re¬ sult of transportation rate increases ef¬ fective after January 25, 1951, which nave been permitted by Federal or State regulatory bodies or by the Office of Price Stabilization. Such increases may include excise taxes which are a part of, or are applicable £o, such increases. The higher ceiling prices may be made effective as of the date of the increase in transportation rate. (2) Where transportation of product in facilities which you own or control is in lieu of transportation by a regulated carrier, by the amount of unit increase that would be permitted you in para¬ graph (b) (1) cf this section, had you used such regulated carrier. <c) If you increase your ceiling prices in accordance with the provisions of this regulation you may round to the nearest fraction of a cent per gallon in accord¬ ance with your customary practices. If you elect to round on one product you must round all your ceiling prices in¬ creased under this section to reflect de¬ creases as well as increases. (d) The provisions of paragraph (b) (1) and (2) of this section may not be used to increase your ceiling prices where the increased transportation costs you have incurred are the result of changes in sources of supply. 4. Section 11 is amended by adding a new paragraph designated <c) to read as follows: (c) If the taxes referred to in para¬ graphs (a) and (b) of this section are included in the ceiling prices you have established under the provisions of this regulation, and such tax is reduced or repealed after January 25, 1951, you must reduce your ceiling price by the amount of the tax reduction. You must also reduce your ceiling price by the amount of the reduction in the ceiling price of your supplier due to a repeal or reduction of such tax. (Sec. 704. 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective December 24, 1952. Joseph H. Freehill, Director of Price Stabilization. December 19, 1952. •' . - ' * - • • •• . • 1 . . 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FILE following 81 Trans 33:5 (10-15-52) 81 Trans 33:205.1 INTERPRETATIONS CPR 13, Sec. 5 BRANDED AND UNBRANDED GASOLINE Different grades for pricing purposes Assuming that an unbranded gasoline is of the same quality as a branded gasoline, or even a better quality, the question is raised as to whether a seller, who sold branded regular gasoline in the base period, and now shifts to unbranded regular, has a ceiling price established under section 5 for the new gasoline. Grades of gasoline are not necessarily distinguished by the chemical contents of the product. In branded products there may be some variation in quality between one brand and another, and this variation could even occur within the same brand. Where customary sales practices at the retail level have made the various branded gaso¬ lines equivalent by virtue of equal or equivalent prices, a grade of gasoline exists for the purposes of CPR 13. In most areas of United States competition, advertising or other factors have resulted in creating a distinction between branded and un¬ branded products. Dealers in unbranded gasoline generally are in the position that, despite the chemical similarity or even superiority of their gasoline, their prices have customarily been established at levels lower than those which prevailed for branded. Because of this general differentiation it is to be concluded that branded regu¬ lar gasoline and unbranded regular gasoline are different grades from a pricing standpoint. Thus, where a seller, who sold branded regular gasoline in the base period sub¬ sequently shifts to unbranded regular he has no ceiling price under section 5 of CPR 13 and should set his ceiling price in accordance with section 6, or other appro¬ priate sections of the regulation. (2-1-52 No. 6) . ti h i 08 iJJ C, ,»ij: ' q *r. • „ a a MW: v<« l I *$^■3 'UV FILE following 81 Trans 33:5 (7-24-51) 81 Trans 33:301 Retail Margins on Gasoline in Counties of Orange and Los Angeles, California Ceiling Price Regulation 13 Supplementary Regulation 1 JULY 26, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 13, Supplementary Regulation 1] CPR 13—Retail Ceilings on Petroleum Products ' SR 1-RETAIL MARGINS ON GASOLINE IN THE COUNTIES OF ORANGE AND LOS ANGELES, CALIFORNIA Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended, Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 P. R. 738), this Supplementary Regulation 1 to Ceiling Price Regulation 13 (16 P. R. 2626) is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation to Ceil¬ ing Price Regulation 13, provides a spe¬ cial pricing method for retail sellers of motor gasoline in Los Angeles and Orange Counties of California. These two counties produce 36 per cent of the crude oil supply of the Pacific Coast, have approximately 25 refineries repre¬ senting 59 per cent of the five Western states’ refining capacity, and distribute gasoline through over 9,500 retail service station outlets. The gasoline sold by them supplies about 3.5 to 4 per cent of the total United States gasoline demand, and fully 35 per cent of the demand for this product in the Pacific Coast states. The magnitude of this operation indi¬ cates that any interruption in the flow of gasoline from refineries to the motor¬ ing public through the medium of retail establishments could be damaging to the defense effort. The coincident inauguration of price control with the ending of a “price war” which had been in existence in this area resulted in the freezing at abnormally low levels of retail margins of a large segment of these retail establishments. It is the purpose of this supplementary regulation to restore to this segment its normal margin of 4 y20 per gallon on regular grade gasoline, with customary differentials for premium and third grade gasolines. This 4J/20 margin for regular grade gasoline has customarily existed in this area since 1948 and while it is available under present provisions of Ceiling Price Regulation 13 to the ma¬ jority of retail establishments in this area, it is not uniform. A survey of the area involved by the Retail Advisory Committee and the Re¬ gional Petroleum Consultant establishes that the customary differential between suppliers’ tank truck prices or dealers’ laid down cost and the retail price is 4!/20 per gallon on regular grade gaso¬ line and 5<t per gallon on premium grade. Information has been secured which shows that approximately 94 percent of the volume in this area customarily is sold at these margins. During the “price war” period, however, approximately 20 percent of the total retailers were obliged to sell at margins from 3 to 3J/20 per gallon. Inasmuch as normal margins were not possible of attainment for this segment in the base period and the 40 margin provision available under section 8 (a) (1) is not equivalent to the normal mar¬ gin, the Los Angeles dealers have peti¬ tioned to be relieved from the resultant margin squeeze. The requested margin of 4J/20 per gallon for regular grade gas¬ oline compares with the average margin in the United States of 4.89<* per gallon as reported by the June 6, 1951 issue of National Petroleum News, and compares with other margins on the Pacific Coast of 4.8c1 per gallon at San Fransiseo, 50 per gallon at Reno, 5.50 per gallon at Portland, and 50 per gallon at Spokane. Not only is this margin, therefore, con¬ sistent with margins in other areas of the United States, but it is reasonable as related to costs on the basis of in¬ formation which was obtained and filed in connection with the survey made by the Office of Price Stabilization. Although the survey of retail prices in these counties indicated a normal re¬ tail margin of 4*40 per gallon on reg¬ ular grade and 50 per gallon on pre¬ mium grade gasoline, petitioners have asked for a spelled out margin only for regular grade gasoline while for pre¬ mium grade they suggest following the wording of Ceiling Price Regulation 13. Specifically, they ask for 4^0 per gal¬ lon to be- added to the tank wagon price or laid down cost for regular grade gaso¬ line, plus or minus the customary retail differential for premium and third grade gasoline. It is alleged by the petitioners and supported by the evidence that adoption of the recommendation will have no sig¬ nificant effect upon the current retail price level at about 90 percent of the sales outlets in the Los Angeles basin. The effect, however, upon sales of 6 to 10 percent of the volume will be to in¬ crease prices to the consumers to the extent of 10 to iy20 per gallon. It has also been alleged and supported by evi¬ dence that unless ceiling price relief of the type petitioned for is granted, this segment of sellers will disappear from the market. In recognition of the need to correct the price inequity and to re¬ store the customary margin of this seg¬ ment of sellers in this area, this supple¬ mentary regulation is issued. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization, the prices estab¬ lished by this supplementary regulation are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. Applicability of supplementary regula¬ tion. 2. Authority to change margins. 3. Miscellaneous. Authority: Sections 1 to 3 issued under sec. 704, Pub. Law 774, 81st Cong. Inter¬ pret or apply title IV, Pub. Law 774, 81st Cong., Executive Order 10161, September 9, 1950, P. R. 6105; 3 CFR, 1950 Supp. Section 1. Applicability of supple¬ mentary regulation. This supplemen¬ tary regulation is applicable to persons engaged in selling automotive or ma¬ rine gasoline from a retail establish¬ ment in the Counties of Orange and Los Angeles, California. Sec. 2. Authority to change margins. Notwithstanding any provisions of Ceil¬ ing Price Regulation 13, if you are a seller of automotive or marine gasoline at a retail establishment you may, if you choose, fix a ceiling price for each grade of automotive or marine gasoline by adding to the tank wagon ceiling price for regular grade gasoline of your supplier 4x/20 per gallon plus or minus your customary retail differential for premium or third grade gasoline. Sec. 3. Miscellaneous, (a) The sell¬ ers subject to this supplementary regu¬ lation shall be subject to all other pro¬ visions of Ceiling Price Regulation 13 which are not inconsistent with the pro¬ visions hereof. (b) Notwithstanding any provision of Ceiling Price Regulation 13 which re¬ quires that once you have established your ceiling price you must continue us¬ ing that ceiling price, you may, if you elect to determine your ceiling prices, under the provisions of section 2 of this supplementary regulation, change your ceiling price in accordance therewith; but having made such change and estab¬ lished a new ceiling price in accordance with the provisions of section 2 of this supplementary regulation you must con¬ tinue to use this ceiling price unless a change in ceiling price is subsequently ordered by the Office of Price Stabiliza¬ tion. Effective date. This Supplementary Regulation 1 to Ceiling Price Regula¬ tion 13 shall become effective on the 31st day of July, 1951. Michael V. DiSalle, Director of Price Stabilization. July 26, 1951. . < ' • . ( * . • < .'N >- < I * ' - FILE following 81 Trans 34:17 (12-6-51) 81 Trans 34:C1 Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Gases, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas OFFICE OF PRICE STABILIZATION Ceiling Price Regulation 17 Colldtion 1 (Including Amendments 1-4) DEC. 6, 1951 WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Collation 1) CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Gases, Natural Gas, Petroleum Gas, Casing¬ head Gas and Refinery Gas Ceiling Price Regulation 17 is repub¬ lished to incorporate the texts of Amend¬ ments 1 through 4, inclusive. Ceiling Price Regulation 17 was issued April 5, 1951 (16 P. R. 3033). Statements of Consideration for Ceiling Price Regula¬ tion 17, and for Amendments 1-4, in¬ clusive, as previously published, are; applicable to this republication. The effective dates of this regulation, and of the amendments are shown in a note preceding the first section of the regu¬ lation. REGULATORY PROVISIONS Introduction ARTICLE I-GENERAL PROVISIONS Sec. 1 Products covered. 3 Transactions and persons covered. S 'Geographical coverage. 4 Products and transactions excepted from the General Celling Price Regulation and Celling Price Regulation 22. 5 Exports. 6 Imports. 7 Secret contracts. 8 Transfers of business or stock in trade. 0 Adjustable pricing. 10 Petitions for amendment. 11 Applications for adjustment. 12 Price revisions incident to orders estab¬ lishing specific prices. 18 Shifts which must be reported. 14 Records. 15 Compliance with this regulation re¬ quired. 16 Definitions. ARTICLE II—CEILING PRICES 17 Aviation Gasoline. 18 Automotive and Marine Gasoline. 10 Petroleum Naphthas and Solvents. 20 Kerosenes, Tractor Fuels, Distillates and Heating Oils. 21 Residual Fuels. 22 Liquefied Petroleum Gases. 23 Natural Gasoline. 23a Natural Gas, Petroleum Gas. Casinghead Gas and Refinery Gas. 24 All other petroleum products Included under this regulation. ARTICLE m—INCREASES PERMITTED OS REDUCTIONS REQUIRES 28 Transportation. 27 Increases permitted for designated areas. ARTICLE IV—PINAL PRICING METHOD 28 Seller unable to determine celling price. Authority : Sections 1 to 28 issued under 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C, App. Sup. 2101-2110. E. O. 10161, Sept. 9, 1950, 15 F. R. 6106; 3 CFR, 1950 Supp. Derivation: Sections 1 to 28 contained in Celling Price Regulation 17, AprU 5, 1951 (16 F. R. 3033), except as otherwise noted In brackets following text affected. Effective Dates: CPR 17, April 10, 1951, 16 F. R. 3033. Amendment 1, AprU 16, 1951, 16 F. R. 3215. Amendment 2, June 4, 1951, 16 F. R. 5319. Amendment 3, July 24, 1951, 16 F. R. 7148. Amendment 4, October 27, 1961, 16 F. R. 10774. ARTICLE I Section 1. Products covered. This regulation covers the following products: Any fraction of crude petroleum which is a source of or is used to produce any of the products listed below. Any fraction of petroleum which is sold for the same end use as any of the prod¬ ucts listed below. Liquefied petroleum gases Natural gasoline Aviation gasoline Automotive and marine gasoline All petroleum naphthas and solvents Benzine, toluenes and xylenes Stove and lamp gasoline and pressure ap¬ pliance fuel Condensate or distillates extracted in nat¬ ural gasoline or cycling plants or not moved as crude petroleum Jet propulsion fuel Tractor fuel Kerosene Range oil, stove oil or heater oil All other distUiate burning, heating or fuel oils Diesel fuels Gas oils Gas enrichment oil Residual fuel oils and blends thereof with distillate fuel oils Natural gas. petroleum gas, casinghead gas, and refinery gas (Above Item added by Amdt. 1] Special hydrocarbon fractions used In manufacturing synthetic rubber, avia¬ tion gasoline, benzene, toluene, or xylene or their components [Above Item added by Amdt. 4) Crude petroleum when sold: (1) to a processor for use as gas enrichment oil, (2) to a tank wagon reseller by sellers other than crude oil producers for resale to a consumer for a purpose other than the production of more than one petro¬ leum fraction therefrom, or (3) to a con¬ sumer for a purpose other than the production of more than one petroleum fraction therefrom: provided, however, this regulation shall not be applicable to sales of crude petroleum, to a refiner or to a person using such crude petroleum in oil and gas field operations. Sec. 2. Transactions and versons cov¬ ered. This regulation covers all types of sales and deliveries of the products listed in Sec. 1 either by refiners, producers, processors, natural gasoline or cycling plant operators, blenders, resellers, or any other person, with the following excep¬ tions: (a) Retail sales at retail establish¬ ments, including transactions through stationary retail facilities which are in conjunction with bulk plants, terminals or. refineries. (b) Exchanges of petroleum products between refiners or other petroleum sell¬ ers, provided prices at which such sales are made do not affect the level of ex¬ isting ceiling prices. (c) Sales between corporations when one is a wholly owned subsidiary of the other, or when both are wholly owned subsidiaries of a third corporation, and sales between such other affiliated or controlled corporations as are especially excepted by order in writing of the Di¬ rector of Price Stabilization or his duly authorized representative, provided prices at which such sales are made do not affect the level of existing ceiling prices. (d) Sales of aviation gasoline of 100 octane ASTM or higher when made to a defense agency or to any person for use in connection with a defense contract or subcontract. (e) All sales of benzene, toluene and xylenes. (Paragraph (e) amended by Amdt. 4] (f) Interreflnery sales of petroleum fractions when such sales are made at the direction of the Petroleum Adjnin- istration for Defense. (g) Sales of special hydrocarbon fractions or liquefied petroleum gas when sold for use in manufacturing the following products or components of such products: (1) Synthetic rubber. (2) Aviation gasoline of 100 octane ASTM or higher, toluene, benzene or their components, when sold to a de¬ fense agency or to any person for use in connection with a defense contract or subcontract. [Subparagraph (2) amended by Amdt. 4] Sec. 3. Geographical coverage. The provisions of this regulation are applica¬ ble to the United States, its territories and possessions and the District of Co¬ lumbia, except the Canal Zone. Sec. 4. Products and transactions ex¬ cepted from the General CeOtno Price 81 Trans 34:C2 Regulation and Ceiling Price Regulation 22. Any products or transactions ex¬ cepted from the coverage of this regula¬ tion by section 2 are also excepted from the provisions of the General Ceiling Price Regulation and Ceiling Price Regu¬ lation 22. | Section 4 amended by Amdt. 4] Sec. 5. Exports. The ceiling price at which a person may export any product covered by this regulation shall be de¬ termined by this regulation plus the ad¬ ditions permitted for export sales of the commodities covered by this regulation by any applicable export regulation which may hereafter be issued. Sec. 6. Imports. Ceiling prices in this regulation shall apply even though the product involved originated outside of the area covered by the regulation and was imported into such area. Sec. 7. Secret contracts. The provi¬ sions of this price regulation shal1 not apply to sales of any product pursuant to a contract which is officially classi¬ fied as “secret” or above. Sec. 8. Transfers of business or stock in trade. If the business, assets or stock in trade of any business are sold or otherwise transferred after January 26, 1951, and the transferee carries on the business, or continues to deal in the same type of products, in an establish¬ ment separate from any other estab¬ lishment previously owned or operated by him, the ceiling prices of the trans¬ feree shall be the same as those to which his transferor would have been subject if no such transfer had taken place, and his obligation to keep records sufficient to verify such prices shall be the same. The transferor shall either preserve and make available, or turn over, to the transferee all records of transactions prior to the transfer which are neces¬ sary to enable the transferee to comply with the record provisions of this regu¬ lation. If the prices for the establish¬ ment are not in line with prices which would be arrived at under the in-line ceiling price method of Article II, the transferee may nevertheless arrive at his ceiling prices by use of this “in-line method.” Sec. 9. Adjustable pricing. Any per¬ son may agree to sell at a price which can be increased up to the ceiling price in effect at the time of delivery; but no person may, unless authorized by the Of¬ fice of Price Stabilization, deliver at prices to be adjusted upward in accord¬ ance with action taken by the Director after delivery. Such authorization may be given when a request for a change in .the applicable ceiling price is pending, but only if the authorization is necessary to promote distribution or production and if it will not interfere with the pur¬ poses of the Defense Production Act of 1950, as amended. The authorization may be given by the Director or by any official of the Office of Price Stabilization to whom the authority to grant such au¬ thorization has been delegated. The authorization will be given by order, ex¬ cept that it may be given by letter or telegram when the contemplated revi¬ sion will be the granting of an individ¬ ual application for adjustment. (Section 9 amended by Amdt. 4( Sec. 10. Petitions for amendment. Any person seeking an amendment of any provision of this regulation may file a petition for amendment in accordance with the provisions of Price Procedural Regulation No. 1. Sec. 11. Applications for adjustment. (a) The Director of Price Stabilization may adjust by order any ceiling price established under this regulation for a seller or group of sellers or for a general area when it appears: (1) Local shortages. (1) That there exists or threatens to exist in a particular locality a shortage in the supply of a petroleum product which aids directly in the present de¬ fense program or is essential to a stand¬ ard of living consistent with the main¬ tenance of the defense program; (ii) That such local shortage will be substantially reduced or eliminated by adjusting the ceiling prices of such sell¬ er and of like sellers for such product; and (iii) That such adjustment will not create or tend to create a shortage, or a need for increase in prices, in another locality, and will effectuate the purposes of the Defense Production Act of 1950. (iv) Applications for adjustment for local shortages shall be filed with the Petroleum Branch, Office of Price Sta¬ bilization, Washington 25, D. C. (2) Depressed price areas and price inequities. (i) That due to temporary conditions a seller has a ceiling price which is not in line with his customary pricing prac¬ tice or with his customary price rela¬ tionship with other sellers in the same marketing area, or (ii) That prices charged for petroleum products in a particular area have cus¬ tomarily followed the pattern of prices in nearby or surrounding areas, but due to temporary conditions ceiling prices have been established by this regulation which are not in line with the level of prices which would have prevailed had the area been free to adjust itself to normal conditions. (b) The seller in applying under (a) (2) (i) or (a) (2) (ii) above shall show to the satisfaction of the Director: (1) -The basis upon which it is con¬ cluded that the ceiling prices are below normal, with a statement of how long the inequity has been in existence. (2) The ceiling prices proposed. (3) Information supporting why the proposed ceiling prices would be normal. (4) A statement that the proposed ceiling prices will be in line with the leJtel of ceiling prices otherwise established by the regulation. (5) Applications for adjustment for depressed price areas and price inequi¬ ties shall be filed with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C. (c) Government contracts. Any per¬ son who has entered into or proposes to enter into a contract with an agency of the United States Government who be¬ lieves that a ceiling price contained in this regulation impedes or threatens to impede production, manufacture or dis¬ tribution of a commodity essential to the defense program may file an appli¬ cation for adjustment with the Pe¬ troleum Branch, Office of Price Stabili¬ zation, Washington 25. D. C. Sec. 12. Price revisions incident to or¬ ders establishing specific prices. The Director of Price Stabilization may by supplementary regulation or by special order establish specific ceiling prices or otherwise modify the provisions of this regulation with respect to certain prod¬ ucts, transactions or geographical area. |Section 12 amended by Amdt. 4] Sec. 13. Shifts which must be reported. Where a seller has established a ceiling price on a delivered-at-destination basis at a given point for a particular petro¬ leum product to a purchaser and there¬ after sells such purchaser on an f. o. b. shipping point price basis, he shall report such shift to the Director of Price Sta¬ bilization within thirty days after the date such sale is made if the effect of selling on an f. o. b. shipping point price basis is to increase the laid-down cost to the purchaser above the seller’s de¬ livered-at-destination ceiling price to such purchaser. However, a seller may not shift to an f. o. b. shipping point price basis unless he has an f. o. b. ship¬ ping point ceiling price properly deter¬ mined under the appropriate provisions of this regulation. The Director of Price Stabilization may by special order modi¬ fy the terms and provisions applicable to such sales when in his judgment, the re¬ ported shift constitutes an evasion of the purposes of this regulation. (Section 13 amended by Amdt. 4J Sec. 14. Records, (a) The following records must be preserved and kept available for examination by the Direc¬ tor of Price Stabilization: (1) Records in the seller’s possession showing the prices charged by him for the petroleum products which he sold or offered for sale in the base period. In addition, the seller must prepare within 90 days after the effective date of this regulation and preserve a .statement of any of his customary allowances, dis¬ counts, and other price differentials. (2) Records indicating clearly the basis upon which the seller determined the celling price for any petroleum prod¬ uct not sold or offered for sale by him during the base period. (3) Records, for a period of .vo years, of the kind the seller customarily keeps, showing the prices which the seller charges on sales of products covered by this regulation (b) Compliance with these record keeping provisions shall be deemed com¬ pliance with the record keeping require¬ ments of the General Ceiling Price Regu¬ lation during tho period when petroleum products were covered by that regula¬ tion. Sec. 15. Compliance with this regula¬ tion required, (a) Prohibitions against selling or delivery of petroleum products at prices above the ceiling. On and after the effective date of this regulation re¬ gardless of any contract or other obllga- 81 Trans 34:C3 tion, no person shall sell or deliver and no person shall buy or receive in the i course of trade or business any petroleum product covered by t’.is ’"'gulation at prices higher than the ceiling prices fixed by this regulation, and no person shall agree, offer, solicit, or attempt to do anything prohit'ted by this section. Prices lower than the ceiling prices may be charged, demanded, paid, or offered. (b) Evasion. The ceiling prices es¬ tablished by this regulation shall not be evaded either by direct or indirect meth¬ ods in connection with the purchase, sale, delivery or transfer of petroleum products alone or in conjunction with any other materials, or by way of any commission, service, transportation, or any other charge, or discount, premium or other privilege, or by tie-in agree¬ ment or other trade understanding, or bj a change in the quality of the prod¬ uct, or otherwise, except when such change in quality results from order of an agency of the United States Govern¬ ment. (c) Enforcement. Any person who violates any provision of this regulation is subject to the criminal penalties, civil enforcement actions, and suits for dam¬ age provided for by the Defense Produc¬ tion Act of 1950. Sec. 16. Definitions, (a) “Person” in¬ cludes an individual, corporation, part¬ nership, association, or any other or¬ ganized group of persons or legal suc¬ cessors and representatives of any of the foregoing, and includes the United States or any agency thereof, or any other gov- ^ ernment, or any of its political subdivi- sions, or any agency of any of the fore¬ going. (b) “Product of the same grade.” For a product of a particular seller to be regarded as of the same grade as the product of another seller it must cus¬ tomarily have been so regarded in trade practice in the general area where such products are sold. (c) "Contract” means an agreement, the existence of which is established by written evidence. (d) "Base Period" means the period from December 19, 1950 to January 25. 1951, inclusive. (e) “Tank ‘Wagon Price” means a par¬ ticular price level as customarily estab¬ lished by a seller, regardless of the type or size, of equipment that may be used for making deliveries, as distinguished from the retail service station price, or the ‘tank car” price, or other large lot quantity price levels. • The tank wagon price is a delivered-at-destination price. However, if at a particular bulk plant or terminal the operator had a tank wagon price to consumers who picked up their supply at such bulk plant or terminal then the operator thereof may continue to charge or offer the tank wagon price to consumers at the particular bulk plant or terminal. (f) “Retail establishment” means a store, shop, garage, service station (land or marine) or other stationary place of business at which the major portion of the sales of petroleum products is sold ^ in customary small quantities to con- ; sumers. Any facility making deliveries of fuel into fuel tanks of aircraft at an airport (or other landing area) shall be considered a retail establishment for the pvrpose of this regulation. (g) “Defense Agency.” This term as used in this regulation means the De¬ partment of Defense (including the De¬ partment of the Army, the Department of the Navy, and the Department of the Air Force), the Maritime Administra¬ tion of the Department of Commerce, the United States Coast Guard, and the Atomic Energy Commission. (h> “Defense contract" means any purchase order or written agreement with a Defense Agency. (i) “Subcontract” means any purchase order, or agreement to perform all or any part of the work required under a defense contract or to make or furnish any commodity needed for the perform¬ ance of a defense contract. (j) “Delivery point” for sales made at the tank wagon price level whenever referred to in this regulation means the customary tank wagon price area of the seller. If a seller customarily maintains different price areas within the area cus¬ tomarily supplied from a bulk or distrib¬ uting plant, such price areas being re¬ flected by the seller on a stated price or differential basis, then each such price area shall be interpreted as a delivery point and the ceiling price of each seller in each such price area shall reflect his customary differentials or differences in prices. (k) “Offering price.” The price at which a product was offered means the price shown in the seller’s price list, or if a particular price was not included therein, or if he had no price list, the price at which he offered products in any other written manner. Such prices shall be subject to seller’s customary allow¬ ances, discounts, and price differentials. (l) “Sale.” This term for purposes of using the “ceiling price based on sales” method of Article II shall include: (1) Sales in the base period pursuant to oral or written contracts, including spot sales, made during such period. (2) Written contracts made during the base period whether or not any de¬ liveries were made thereunder, and written contracts made during the period June 1, 1950, to December 19, 1950, in¬ clusive. under which no deliveries were made in the base period but which pro¬ vided for performance to begin during o after the base period. (3) Deliveries made during the base period under a contract made between June 1, 1950, and December 19, 1950, if such contracts were adjustable to reflect market conditions during the base pe¬ riod, or in the case of tank wagon re¬ sellers if such contracts provided for varying the price to the reseller in ac¬ cordance with a stipulated posted mar¬ ket price (or prices) at the point or points where such buyer resells. Provided, however, that in all cases de¬ liveries made in the base period under contracts entered into prior to June 1, 1950, shall not be considered as a “sale,” unless the buyer and seller agree to con¬ tinue such contracts, in which case the ceiling price may be established on the basis of such contracts. (m) “Purchaser of same class” refers to the practice adopted by the seller in setting different prices for a product for sales to purchasers performing different functions (for example, refiner; job¬ ber; distributor, commercial, industrial or private consumer; service station tank car dealer; divided or undivided tank wagon dealer; etc.), or for purchasers performing the same functions but lo¬ cated in different areas, or buying in different quantities or grades or under different conditions of sale. Price is prima facie evidence but not conclusive evidence to be considered in determining if a purchaser belongs to a particular class; however, a lower price to a par¬ ticular purchaser which was to meet competition and was otherwise incon¬ sistent with the seller’s practice in set¬ ting the same price to purchasers in the same functional class shall neither result in placing the particular pur¬ chaser in a lower price class nor be con¬ sidered in determining a seller’s ceiling price. (n) “Posted purchase price” means a price schedule posted by a purchaser who, during the period December 19, 1950, to January 25, 1951, inclusive, ac¬ tually purchased any of the products covered in Sec. 23 produced from any field, or delivered or tendered by a nat¬ ural gasoline or cycling plant operator, refiner, blender, reseller or any other person and to which purchase the posted price was applicable. (o) “Natural gas,” “petroleum gas ” “casinghead gas" and “refinery gas” as used in this regulation means any nat¬ ural or petroleum gas which is sold to be processed for the extraction of vapors and liquids, or for consumption either directly as fuel or to be consumed in the production of any other commodity or for use in gas lift, pressure maintenance or repressuring operations, and includes such gas when delivered directly from wells, and the residue gas resulting from extraction operations. [Paragraph (o) added by Amdt. 1] Article II—Ceiling Prices Note: In determining ceiling price the ceiling price shall reflect customary dis¬ counts. allowances and differentials nased upon terms and conditions of sale or de¬ livery. Sec. 17. Aviation gasoline, (a) Spe¬ cific prices. (Reserved.) (b) Formula prices: (1) Ceiling price based on sales. The ceiling price for each seller at each ship¬ ping or delivery point shall be the high¬ est price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular grade of aviation gasoline to a purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or delivery point shall be the highest of¬ fering price at the shipping or delivery point during the period December 19, 1950, to January 25, 1951, for a sale of a particular grade of aviation gasoline to a purchaser of the same class. 81 Trans 34:C4 (3) Ceiling price based on competitive or in-line ceiling price. (i) Ceiling price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine a ceiling price for aviation gasoline un¬ der (1) or (2) above, his ceiling price at the particular shipping or delivery point shall be the highest ceiling price of any seller of the same class to a pur¬ chaser of the same class for the ship¬ ping or delivery point. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopt¬ ed as his ceiling the ceiling price of such other seller. (ii) In-line ceiling price. If under this method (i) of pricing a seller arrives at a ceiling price for aviation gasoline which is not in line with the price he would have arrived at by use of his customary pricing practices in the same general area during the base period December 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for the prod¬ uct at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after making a sale file this in-line price with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C., stat¬ ing his proposed ceiling price and in what way the ceiling price determined according to the price of a competitive seller of the same class is inconsistent with the customary pricing practices of the seller. Such price shall be the sell¬ er’s ceiling price for the particular prod¬ uct unless it is disapproved in writing or a substitute price is established by the Office of Price Stabilization. A ceil¬ ing price established under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See Sec¬ tion 28 of this regulation. Sec. 18. Automotive and marine gaso¬ line. (a) Specific prices. (Reserved.) (b) Formula prices: (1) Ceiling price based on sales. The ceiling price for each seller at each ship¬ ping or delivery point shall be the high¬ est price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular grade of automotive or marine gasoline to a purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or de¬ livery point shall be the highest offering price at the shipping or delivery point during the period December 19, 1950, to January 25, 1951, for a sale of a par¬ ticular grade of automotive or marine gasoline to a purchaser of the same class. (3) Ceiling price based on competitive or in-line ceiling price. (1) Ceiling price of another seller. When a seller at a given shipping or delivery point is unable to determine a ceiling price for automotive or marine gasoline under (1) or (2) above, his ceil¬ ing price at the particular shipping or delivery point shall be the highest ceil¬ ing price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling the ceiling price of such other seller. (ii) In-line ceiling price. If under this method (i) of pricing a seller ar¬ rives at a ceiling price for automotive or marine gasoline which is not in line with the price he would have arrived at by use of his customary pricing practices in the same general area during the base period December 19, 1950, to January 25, 1951, inclusive, he may nevertheless sell at a price in line with his price for the prod¬ uct at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after making a sale file this in-line price with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C., stat¬ ing his proposed ceiling price and in what way the ceiling price determined according to the price of a competitive seller of the same class is inconsistent with the customary pricing practices of the seller. Such price shall be the sell¬ er’s ceiling price for the particular prod¬ uct unless it is disapproved in writing or a substitute price is established by the Office of Price Stabilization. A ceiling price established under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See Sec¬ tion 28 of this regulation. Sec. 19. Petroleum naphthas and sol¬ vents. (a) Specific prices. (Reserved.) (b) Formula prices; (1) Ceiling price based on sales. The ceiling price for each seller at each ship¬ ping or delivery point shall be the high¬ est price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular grade of petroleum naph¬ thas or solvents to a purchaser of the same class. (24 Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1) the ceiling price for such seller at each shipping or de¬ livery point shall be the highest offer¬ ing price at the shipping or delivery point during the period December 19, 1950, to January 25, 1951, for a sale of a particular grade of petroleum naphthas or solvents to a purchaser of the same class. (3) Ceiling price based on competi¬ tive or in-line ceiling price. (i) Ceiling price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine a ceiling price for petroleum naphthas or solvents under (1), or (2) above, his ceiling price at the particular shipping or delivery point shall be the highest ceiling price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling the ceiling price of such other seller. (ii) In-line ceiling price. If under this method (i) of pricing a seller arrives at a ceiling price for petroleum naphthas or solvents which is not in line with the price he would have arrived at by use of ^ his customery pricing practices in the same general area during the base period December 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for the product at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after mak¬ ing a sale file this in-line price with the Petroleum Branch, Office of Price Sta¬ bilization, Washington 25, D. C., stating his proposed ceiling price and in what wayjhe ceiling price determined accord¬ ing to the price of a competitive seller of the same class is inconsistent with the customary pricing practices of the seller. Such price shall be the seller’s ceiling price for the particular product unless it is disapproved in writing or a substi¬ tute price is established by the Office of Price Stabilization. A ceiling price es¬ tablished under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See Sec¬ tion 28 of this regulation. Sec. 20. Kerosenes, Tractor Fuels, Dis¬ tillates and Heating Oils, (a) Specific prices. (Reservtl.) (b) Formula prices: (1) Ceiling price based on sales. /The ceiling price for each seller at each shipping or delivery point shall be the highest price charged at that point by him during the period December 19,1950, to January 25, 1951, inclusive, for a sale of a particular grade of kerosene, trac- ^ tor fuel, distillate or heating oil to a * purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or deliv¬ ery point shall be the highest offering price at the shipping or delivery point during the period December 19, 1950, to January 25, 1951, for a sale of a particu¬ lar grade of kerosene, tractor fuel, dis¬ tillate or heating oil to a purchaser of the same class. (3) Ceiling price based on competitive or in-line ceiling price. (i) Ceiling price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine a ceil¬ ing price for kerosene, tractor fuel, dis¬ tillate or heating oil under (1) or (2) above, his ceiling price at the particular shipping or delivery point shall be the highest ceiling price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceil¬ ing the ceiling price of such other seller. (ii) In-line ceiling price. If under this method (i) of pricing a seller arrives at a ceiling price for kerosene, tractor fuel, distillate or heating oil which is not in line with the price he would have arrived at by use of his customary pricing prac¬ tices in the same general area during the base period December 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for 81 Trans 34:C5 the product at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after making a sale file this in-line price with the Petroleum Branch, Of¬ fice of Price Stabilization, Washington 25, D. C.. stating his proposed ceiling price and in what way the ceiling price determined according to the price of a competitive seller of the same class is inconsistent with the customary pricing practices of the seller. Such price shall be the seller’s ceiling price foi the par¬ ticular product unless it is disapproved in writing or a substitute price is estab¬ lished by the Office of Price Stabilization. A ceiling price established under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See Sec¬ tion 28 of this regulation. Sec. 21. Residual fuel oils and blends thereof with distillate fuel oils.— (a) Specific prices.— (1) No. 6 Commercial Standard Specifications Fuel Oil. The ceiling prices for sales of No. 6 Commer¬ cial Standard Specifications Fuel Oil in bulk lots delivered into ships’ bunkers (ex lighterage) and delivered into barge and tank car or transport trucks, f. o. b. refineries and tanker terminals shall be as follows at the enumerated points be¬ low: Atlantic coast ports Dollars pet bar Ships’ bunkers (ex light¬ erage) or barge 42-gallon rel Tank car or trans¬ port truck Searsport, Maine-- 2.51 2. 54 Portland, Maine. 2.51 2.54 Portsmouth. New Hampshire— 2.51 2.54 Everett, Massachusetts.... 2.51 2.51 Boston Harbor Area .. 2.51 2.51 Fall River, Massachusetts .. — 2.47 2.47 Tiverton, Rhode Island. 2.47 2. 47 Providence Harbor Area. 2.47 2.47 New London, Connecticut. 2.47 2. 47 New Haven, Connecticut _ 2.47 2. 47 Bridge|>ort, Connecticut . 2. 47 2. 47 New York Harbor Area. 2.45 2.45 Philadelphia Harbor Area.. . 2 45 2. 48 Baltimore, Maryland . 2. 45 2. 48 Norfolk, Virginia... 2. 40 2. 43 Morehead City, North Carolina 2. :14 2. 37 Charleston, South Carolina - 2. .11 2.34 Savannah, Georgia-- 2.31 2.34 Jacksonville, Florida . 2.28 2.31 Miami, Florida. 2. 22 2.25 Tampa, Florida. . 2. Hi 2. 19 Port St. Joe, Florida . 2. 10 2. 19 Panama City, Florida. 2. 10 2. 19 (2) Other residual fuel oil products. Any seller who during the base period maintained a customary differential be¬ tween No. 6 Commercial Standard Speci¬ fications Fuel Oil and other residual fuel oil products, such as low sulphur (max¬ imum 1 per cent) No. 6 fuel oil, residual gas enrichment oils, residual No. 4 and 5 fuel oils and special No. 4 residual fuel oils may add such base period dif¬ ferentials to the ceiling prices deter¬ mined under subparagraph (1) of this paragraph. (3) Preservation of discounts, differ¬ entials, and allowances. The ceiling prices determined under subparagraphs (1) and (2) of this paragraph shall re¬ flect customary discounts, differentials and allowances in effect in the base pe¬ riod to all classes of purchasers. [Paragraph (a) added by Arndt. 2; amended by Amdt. 3] (b) Formula prices: (1) Ceiling price based on sales. The ceiling price for each seller at each ship¬ ping or delivery point shall be. the high¬ est price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular grade of residual fuel oil to a purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or deliv¬ ery point shall be the highest offering price at the shipping or delivery point during tKe period December 19, 1950, to January 25,1951, for a sale of a particular grade of residual fuel oil to a purchaser of the same class. (3) Ceiling price based on competitive or in-line ceiling price (i) Ceiling price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine a ceiling price for residual fuel oil under (1) or (2) above, his ceiling price at the particular shipping or delivery point shall be the highest ceiling price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of deter¬ mining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling the ceiling price of such other seller. (ii) In-line ceiling price. If under this method (i) of pricing a seller ar¬ rives at a ceiling price for residual fuel oil which is not in line with the price he would have arrived at by use of his cus¬ tomary pricing practices in the same general area during the base period De¬ cember 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for the product at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after making a sale file this in-line price with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C., stating his pro¬ posed ceiling price and in what way the ceiling price determined according to the price of a competitive seller of the same class is inconsistent with the customary pricing practices of- the seller. Such price shall be the seller’s ceiling price for the particular product unless it is disapproved in writing or a substitute price is established by the Office of Price Stabilization. A ceiling price estab¬ lished under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. (See Sec¬ tion 28 of this regulation.) Sec. 22. Liquefied petroleum gases. (a) Specific prices. (Reserved.) (b) Formula prices. (1) Ceiling price based on sales. The ceiling price for each seller at each ship¬ ping or delivery point shall be the highest price charged at that point by him during the period December 19.1950, to January 25, 1951, inclusive, for a sale of a particular grade of liquefied petro¬ leum gas to a purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or delivery point shall be the highest offer¬ ing price at the shipping or delivery point during the period December 19, 1950, to January 25, 1951, for a sale of a particular grade of liquefied petroleum gas to a purchaser of the same class. (3) Ceiling price based on competitive or in-line ceiling price. (i) Ceiling price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine a ceiling price for liquefied petroleum gas under (1) and (2) above, his ceiling price at the particular shipping or de¬ livery point shall be the highest ceiling price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling the ceiling price of such other seller. (ii) In-line ceiling prices. If under this method (i) of pricing a seller ar¬ rives at a ceiling price for a liquefied petroleum gas which is not in line with the price he would have arrived at by use of his customary pricing practices in the same general area during the base period December 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for the product at other comparable points which re¬ flects his customary pricing practices. The seller shall within 15 days after making a sale file this in-line price with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C., stat¬ ing his proposed ceiling price and in ,what way the ceiling price determined according to the ■price of a competitive seller of the same class is inconsistent with the customary pricing practices dl the seller. Such price shall be the sell¬ er’s ceiling price for the particular prod¬ uct unless it is disapproved in writing or a substitute price is established by the Office of Price Stabilization. A ceiling price established under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See Sec¬ tion 28 of this regulation. Sec. 23. Natural gasoline, (a) Spe¬ cific prices. (Reserved.) (b) Posted prices: (1) In areas where natural gasoline is dustomarily purchased and sold on the basis of posted purchase prices the ceil¬ ing price for natural gasoline so sold and purchased shall be: (i) Posted purchase price. The ceil¬ ing price for natural gasoline from any given field shall be the posted purchase price as of January 25, 1951, for said field. (ii) Two or more posted purchase prices. Where there was for any field more than one posted purchase price, the ceiling price for natural gasoline shall be the highest of the posted pur¬ chase prices. 81 Trans 34:C6 (iii) Contract in excess of posted pur¬ chase price. Notwithstanding (i) and (ii> above where a contract was in ef¬ fect on January 25, 1951, and was made prior to December 9, ±950, for the pur¬ chase of natural gasoline at the receiv¬ ing tank at a price in excess of the highest posted purchase price for the given neld a*vd deliveries were made prior to January 25, 1951, in accordance with such contract, then the price ac¬ tually charged on January 25, 1951, shall be the ceiling price for the natural gaso¬ line covered by the contract. On termi¬ nation of the contract establishing the ceiling price for the production in¬ volved, any purchaser may purchase the production involved at the price charged under the contract on January 25, 1951, regardless of any posted purchase price, (c) Formula prices: (1) Ceiling price based on sales. The ceiling price for each seller at each shipping or delivery point shall be the highest price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular grade of natural gasoline to a purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or delivery point shall be the highest offer¬ ing price at the shipping or delivery point during the period December 19, 1950, to January 25, 1951, for a sale of a particular grade of natural gasoline to a purchaser of the same class. (3) Ceiling price based on competitive or in-line ceiling price. (i) Ceiling price of another seller When a seller at a given shipping or de¬ livery point is unable to determine a ceiling price for natural gasoline under (1) or (2) above, his ceiling price at the particular shipping or delivery point shall be the highest ceiling price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of de¬ termining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling, the ceiling price of such other seller. (ii) In-line ceiling price. If under this method (i) of pricing a seller arrives at a ceiling price for natural gasoline which is not in line with the price he would have arrived at by use of his cus¬ tomary pricing practices in the same general area during the base period De¬ cember 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for the product at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after making a sale file this in- line price with the Petroleum Branch, Office of Price Stabilization, Washington, D. C., stating his proposed ceiling price and in what way the ceiling price determined according to the price of a competitive seller of the same class is inconsistent-with the customary pric¬ ing practices of the seller. Such price shall be the seller’s ceiling price for the particular product unless it is disap¬ proved in writing or a substitute price is established by the Office of Price Stabili¬ zation. A ceiling price established un¬ der this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See Sec¬ tion 28 of this regulation. Sec. 23a. Natural gas. petroleum gas. casinghead gas 'and refinery gas.— (a) Exemption. Nothing in this section shall be construed to authorize the reg¬ ulation of a rate that is exempt from control by the Office of Price Stabiliza¬ tion under the Defense Production Act of 1950. (b) Specific prices. In cases where there were published rate schedules, or offering prices, of a seller during or within one year prior to the base period, then the highest of such published rates or prices shall be the ceiling prices of the seller as to the classes of purchasers to whom such rate schedules or offering prices relate in any particular market or producing area. In order for a seller to price under this section his published rates, or offering prices, shall be filed with the Petroleum Branch of the Office of Price Stabilization, Washington 25, D. C., on or before May 15, 1951. (c) Formula prices—(l) Ceiling prices based on sales. In the absence of a spe¬ cific price determined under paragraph (b) of this section, the ceiling price for each seller at each delivery point in a particular market or producing area shall be the highest price charged by him in such particular market or producing area during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular type of gas to a purchaser of the same class. In the case of sales of natural gas, petroleum gas, casinghead gas, and refinery gas, the definition of sale contained in the definitions section of this regulation shall not apply. For these products sale shall include: (i) Sales in the base period pursuant to oral or written contracts, including spot sales, made during such period. (ii) (Deleted) [Subdivision (ii) deleted by Amdt. 4| (iii) Written contracts made in the base period whether or not any deliveries were made thereunder, and written con¬ tracts made during the period June 1, 1950, to December 18, 1950, inclusive, un¬ der which no deliveries were made in the base period but which provided for per¬ formance to begin during or after the base period. (iv) Deliveries made during the base period under a written contract made prior to December 19, 1950, and after June 1, 1950, if the prices reflected cur¬ rent market conditions. (2) Existing contracts, (i) Where a buyer and seller have entered into a con¬ tract prior to January 25, 1951 such con¬ tract may be carried out in accordance with its terms, notwithstanding any other provisions of this regulation. (ii) All long term written contracts in effect in the base period may be used, in accordance with the terms of such contracts, as the basis for determining ceiling prices for all purchasers of the same class notwithstanding the provi¬ sions of subparagraph (1) of this para¬ graph. [Subparagraph (2) amended by Amdt. 4J (3) Competitive or in-line ceiling ■price—(i) Ceding price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine a ceil¬ ing price for a particular gas under subparagraph (1) of this paragraph or in cases falling under subparagraph (2) the seller does not choose to determine his ceiling under subparagraph (2), his ceiling price at the delivery point shall be the highest ceiling price of any seller of the same class for gas of the particu¬ lar type to a purchaser of the same class in the same market or producing area. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling the ceiling price of such other seller un¬ der similar contract terms. [Subdivision (1) amended by Amdt. 4] (ii) In-line ceiling price. If under this method (3) (i) of pricing, a seller arrives at a ceiling price for a particular gas which is not in line with the price he would have arrived at by use of his customary pricing practices in the same market or producing area during the base period December 19, 1950, to Janu¬ ary 25, 1951, he may nevertheless sell at a price in line with his price for the particular gas at other comparable points which reflects his customary pricing practices. The seller shall within 15 days after making a sale file this in-line price with the Petroleum Branch, Office of Price Stabilization, Washington 25. D. C., stating his proposed ceiling price and in what way the ceiling price deter¬ mined according to the price of a com¬ petitive seller of the same class is inconsistent with the customary pricing practices of the seller. Such price shall be the seller’s ceiling price for the par¬ ticular product unless it is disapproved in writing or a substitute price is estab¬ lished by the Office of Price Stabilization. A ceiling price established under this section may be changed at any time by order of the Office of Price Stabilization. (4) Final pricing method. See sec¬ tion 28 of this regulation. [Section 23a added by Amdt. 1[ Sec. 24. All other petroleum products included under this Regulation, (a) Specific prices. (Reserved.) (b) Formula prices: (1) Ceiling price based on sales. The ceiling price for each seller at each ship¬ ping or delivery point shall be the high¬ est price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of a particular grade of any other petro¬ leum product included under this Regu¬ lation but not listed under one of the foregoing sections to a purchaser of the same class. (2) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under (1), the ceiling price for such seller at each shipping or delivery point shall be the highest offei ing price at the shipping or delivery point during the period December ti 81 Trans 34:C7 1950, to January 25, 1951, for a sale of a particular grade of any other petro¬ leum product included under this Reg¬ ulation but not listed under any of the foregoing sections to a purchaser of the same class. (3) Ceiling price based on competitive or in-line ceiling price. (i) Ceiling price of another seller. When a seller at a given shipping or de¬ livery point is unable to determine under (1) or (2) above a ceiling price for any other petroleum product included under this Regulation but not listed under any of the foregoing sections, his ceiling price at the particular shipping or de¬ livery point shall be the highest ceiling price of any seller of the same class to a purchaser of the same class for the same shipping or delivery point. This method of determining a ceiling price cannot be used unless the seller’s records show that for the purpose of such sale he has adopted as his ceiling the ceiling price of such other seller. (ii) In-line ceiling prices. If under this method (i) of pricing a seller arrives at a ceiling price for a petroleum prod¬ uct included under this Regulation but not listed under any of the foregoing sec¬ tions which is not in line with the price he would have arrived at by use of his customary pricing practices in the same general area during the base period De¬ cember 19, 1950, to January 25, 1951, he may nevertheless sell at a price in line with his price for the product at other comparable points which reflects his customary pricing practices. The seller shall within 15 days aftei making a sale file this in-line price with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C., stating his pro¬ posed ceiling price and in what way the ceiling price determined according to the price of a competitive seller of the same class is inconsistent with the cus¬ tomary pricing practices of the seller. Such price shall be the seller’s ceiling price for the particular product unless it is disapproved in writing or a substi¬ tute price is established by the Office of Price- Stabilization. A ceiling price established under this section may be changed at any time by^ order of the Office of Price Stabilization. (4) Final Pricing method. See Sec¬ tion 28 of this, regulation. ARTICLE III—INCREASES PERMITTED OR REDUCTIONS REQUIRED Sec. 25. Transportation, (a) There may be added to the applicable ceiling prices determined under other sections of this Regulation an amount not in excess of the following; (1) The increased costs to the seller or his reseller customer resulting from transportation rate increases after Jan¬ uary 25, 1951, permitted by Federal or State regulatory bodies or by the Office of Price Stabilization. (2) Where transportation is in facili¬ ties owned or controlled by the seller the same increases as provided in (1) above where the movement involved is in lieu of transportation by such regulated carrier. Provided, however, there may be added by the seller to the applicable ceiling price established herein an amount not in excess of the transportation tax im¬ posed by Section 620 of the Revenue Act of 1942 if the seller incurred such tax. (b) A seller adding transportation in¬ creases may round out fractions of cents per gallon in line with his custom¬ ary base period practices. [Paragraph (b) added by Amdt. 4) Sec. 26. Taxes. Any tax increase, or new tax after January 25, 1951, imposed upon or incident to the sale, production, gathering, severance, transportation, de¬ livery, processing or use of any petro¬ leum product covered by this regulation, excepting import duties, may be collect¬ ed by a seller in addition to the ceiling prices established under this regulation, if the seller is required by law to collect or pay such tax. Sec. 27. Increases permitted for desig¬ nated areas—(a) Export sales and sales in the territories of the United States. Any export regulation which may here¬ after be issued shall be applicable to ex¬ port sales and sales for export of com¬ modities covered by this regulation. Sellers of commodities covered by this regulation who during the base period treated purchasers in the territories of the United States as purchasers of a separate class from purchasers located in the continental United States may continue to apply on their sales to these purchasers their customary differentials. Such customary differentials may in¬ clude charges for special packing if it was the sellers’ practice to include such charges on their sales to purchasers in the territories during the base period. (b) Puerto Rico and the Virgin Is¬ lands. On deliveries of residual fuel oil or blends thereof in Puerto Rico and the Virgin Islands, a seller may add to his f. o. b. or delivered ceiling price 7<* per barrel plus any duty actually paid by him in excess of lOVfe?1 per barrel, unless the seller has already added increased duty charges pursuant to paragraph (a) of this section. (c) Delivered cargo ceiling prices for residual fuel oil and blends thereof with distillate fuel oils at Altantic Coast ports—(1) No. 6 Commercial Standard Specifications Fuel Oil. The delivered cargo ceiling prices of all sellers for sales of No. 6 Commercial Standard Specifica¬ tions Fuel Oil applicable to all classes of purchasers in effect prior to June 4, 1951, shall be increased by the amounts per barrel indicated at the points enumer¬ ated in the table below: Atlantic coast ports Dollars per 42-gallon barrel Increases in delivered cargo prices Searsport, Maine. Portland, Maine. Portsmouth, New Hampshire.. Everett, Massachusetts. Boston Harbor Area. Fall River, Massachusetts. Tiverton, Rhode Island. Providence Harbor Area. New London, Connecticut. New Haven, Connecticut. Bridgeport, Connecticut.. New York Harbor Area. Philadelphia Harbor Area.. Baltimore, Maryland. Norfolk, Virginia. Morehead City, North Carolina Charleston, South Carolina. Savannah, Georgia. Jacksonville, Florida. Miami, Florida.. Tampa, Florida. Port St. Joe, Florida... Panama City, Florida... *0.31 .31 .31 .31 .31 .295 .295 . 295 .295 .32 .32 .30 .30 .30 .25 .22 .21 .21 .19 .17 .17 .17 .17 (2) Other residual fuel oil products. Any seller who during the base period maintained a customary differential be¬ tween No. 6 Commercial Standard Speci¬ fications Fuel Oil and other residual fuel oil products, such as low sulphur (maxi¬ mum 1 per cent) No. 6 fuel oil, residual gas enrichment oils, residual No. 4 and 5 fuel oils and special No. 4 residual fuel oils may add such base period differen¬ tials to the ceiling prices determined un¬ der subparagraph (c) (1) of this section. (3) Increases for other transactions and at other points. An f. o. b. or deliv¬ ered ceiling price, in effect prior to June 4, 1951, of any seller of residual fuel oil or blends thereof, whose ceiling price is not established in section 21 (a) (1) and (2), shall be increased to each class of purchaser by the amount of the increase specified in the table in paragraph (c) (1) of this section in the following cases: (i) On sales at any point where the purchaser is of a class which was cus¬ tomarily, and is presenty, supplied from the points designated in the table in paragraph (c) (1) of this section. (ii) On sales at any point where the seller’s price of residual fuel oil, or blends thereof, was customarily based upon the price at a point set forth in the table in paragraph (c) (1) of this section, in which case the increase can be added irrespective of where the product orig¬ inates. (4) Preservation of discounts, differ¬ entials, and allowances. The ceiling prices determined under this section shall reflect customary discounts, differ¬ entials and allowances in effect in the base period to all classes of purchasers. [Section 27 amended by Amdt. 3] 81 Trans 34:C8 ARTICLE IV—FINAL PRICING METHOD Sec 28. Seller unable to determine ceiling price, 'a) If under other provi¬ sions of this regulation, a seller is unable to determine his ceiling price at a given shipping or delivery point for any prod¬ uct covered by this regulation, then the seller may nevertheless make a sale of such product at that point. If a seller wishes, he may file a ceiling price before making a sale. If the ceiling price is not filed in advance he must within 15 days after making the sale file with the Petro¬ leum Branch of the Office of Price Sta¬ bilization, Washington 25, D. C. a written report of the ceiling price including a statement setting forth: (1) The sale price with careful details of the sale, or if no sale is made the ceil¬ ing price which is requested. (2) An explanation as to why the seller is unable to establish a ceiling price under preceding articles of this regu¬ lation. (3) Whenever applicable, that the ceiling price is in line with his own ceiling price for the same product at three other points nearest the point at which the sale is made. (4) Whenever (3) is not applicable, an explanation, supplemented by speci¬ fications as to how the particular prod¬ uct differs from the two products hav¬ ing the most nearly similar specifica¬ tions for which ceiling prices are estab¬ lished under preceding articles of this Regulation, the ceiling prices of such products and a statement showing the method of evaluating the product used by the seller. {Paragraph (a) amended by Amdt. 41 (b) The price filed shall be the seller’s ceiling price at the shipping point or delivery point for the particular prod¬ uct unless or until a substitute ceiling price is established. [Paragraph (b) amended by Amdt. 4| (c) If a seller shall fail to report a sale as required by this section, the Of¬ fice of Price Stabilization may at any time upon written notice to the seller establish his ceiling price for the par¬ ticular product at the particular point effective retroactively to a date 15 days after the making of the sale. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget In accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director, Office of Price Stabilization. FILE following 81 Trans 34:C8 (3-10-52) 81 Trans 34:C9 Deposits on Containers OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 17 Amendment 5 MARCH 10, 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 17, Amdt. 5] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Gases, Natural Gas, Petroleum Gas, Casing¬ head Gas, and Refinery Gas deposit on containers Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended. Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Amendment 5 to Ceiling Price Regulation 17 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 17 adds a new section to Article III, fixing the terms under which deposit charges may be made on steel contain¬ ers. This new section is the same as the deposit section in Ceiling Price Regula¬ tion 63 covering lubricating oils and greases and similar to the deposit sec¬ tion in Ceiling Price Regulation 66 cov¬ ering asphaltic products. While gaso¬ lines, naphthas and distillates are sold less frequently in containers than are lubricating oils and greases, sales of products covered by Ceiling Price Regu¬ lation 17 in containers are quite extensive in certain areas and to certain classes of purchasers. During the early history of the Office of Price Stabilization, when Ceiling Price Regulation 17 was being written, it v/as intended to include a section dealing with container deposit charges. How¬ ever, such a section was intentionally omitted from the final draft because the Agency policy on deposit arrangements had not been fully developed. Consul¬ tations with members of industry were still in process at that time for the pur¬ pose of developing a deposit arrangement which would be most satisfactory and workable. The advantages of having a deposit arrangement for steel containers are well recognized in the marketing of pe¬ troleum products. Early in the defense program the scarcity of steel containers was an increasingly serious problem. It became imperative months ago that drums be returned to sellers as rapidly as possible in order that petroleum products could be distributed by cus¬ tomary methods and in adequate volume. In August 1951 this Agency issued Gen¬ eral Interpretation 2 which permitted marketers not only to retain deposit arrangements which were in effect in the base period but also to institute deposit charges in cases where none had been in effect in the base period. While marketers of petroleum prod¬ ucts are permitted, therefore, to utilize deposit arrangements, the terms thereof are not specific when related to products covered by Ceiling Price Regulation 17. To reduce the administrative burden on the Office of Price Stabilization Regional and District Offices and to remove the uncertainty on the part of sellers as to whether their deposit arrangements con¬ form to the conditions of General Inter¬ pretation 2, Ceiling Price Regulation 17 is amended to specify the terms of de¬ posit arrangements applicable to prod¬ ucts subject to this regulation. The new section also prescribes the ceiling price adjustment required when sellers shift from a non-returnable to a return¬ able drum basis. In the formulation of this amendment, there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, to the extent practicable. As mentioned above, when the formal Industry Advisory Committee discussed the provisions of Ceiling Price Regulation 17, the deposit problem was studied, and consideration has been given the recommendations made at that time. In the judgment of the Director of Price Stabilization, the provisions of this amendment are generally fair and equi¬ table and are necessary to effectuate the purposes of Title IV of the Defense Pro¬ duction Act. AMENDATORY PROVISIONS Ceiling Price Regulation 17 is amended in the following respect: A new section 27a is added immedi¬ ately following section 27 to read as follows: Sec. 27a. Containers—(a) Deposits. Any seller subject to the provisions of this regulation may place deposit charges not to exceed the following amounts on the enumerated shipping containers, not including I. C. C. 5 or 5B drums. Such deposit charges shall be subject to the seller’s customary prac¬ tice with respect to condition of drum and time allowed for return: 55-gallon or 400-pound, 16-20-gauge steel drum_$10. 00 30-gallon or 200-pound, 16-20-gauge steel drum_ 6. 00 15-gallon or 100-pound, 19-24-gauge steel drum_ 4. 00 (b) Reduction in ceiling price when shifting from a non-returnable to a re¬ turnable drum basis. Any seller who during the base period sold on a non- returnable drum basis and subsequent to the base period shifts to a .returnable drum basis shall deduct at least the fol¬ lowing amounts from his ceiling prices to his purchasers in all States except California, Washington and Oregon. 55-gallon or 400-pound, 16-20-gauge steel drum_$1. 75 30-gallon or 200-pound, 16-20-gauge steel drum_ 1. 50 15-gallon or 100-pound, 19-24-gauge steel drum_ 1.00 In the States of California, Washing¬ ton and Oregon, the minimum deduc¬ tions from ceiling prices shall be the amounts set forth above plus an addi¬ tional $0.25. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. 2154) Effective date. This amendment to Ceiling Price Regulation 17 shall become effective March 15, 1952. Ellis Arnall, Director of Price Stabilization. March 10, 1952. ' • • ■ FILE following 81 Trans 34:C9 (5-20-52) 81 Trans 34:C11 Exclusion of Territories and Possessions (Amending Secs. 3 and 27(a); deleting Sec 27(b)) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 17 Amendment 6 MAY 20, 1052 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Amdt. 6] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas territories and possessions Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this amend¬ ment to Ceiling Price Regulation 17 is heieby issued. STATEMENT OF CONSIDERATIONS This amendment excludes from the coverage of Ceiling Price Regulation 17 the territories and possessions of the United States. This will place the sales of these petroleum products in the ter¬ ritories and possessions under the pro¬ visions of Ceiling Price Regulation 9 which was specifically written to cover sales of all types of commodities within the territories and possessions of the United States. When Ceiling Price Regulation 17 was issued, it was considered to be a workable ceiling price regulation for the territories and possessions as well as the Continen¬ tal United States. However, because most of its provisions were designed to meet marketing conditions as they existed within the 48 States experience has proved this expectation incorrect. For example, Ceiling Price Regulation 17 has already had to be amended to meet specific problems that arose in Puerto Rico and the Virgin Islands. Territorial problems have arisen under CPR 17 be¬ cause most of the petroleum products used in places like Virgin Islands and Puerto Rico are imported into these is¬ lands from foreign countries and by means of foreign-owned transportation facilities. Ceiling Price Regulation 9, on the other hand, was tailored to insure a maximum of price stabilization com¬ mensurate with the physical location, economic problems and marketing prac¬ tices of the territories and possessions. Transfer of sales of petroleum products in the territories and possessions from CPR 17 to CPR 9 not only is expected to solve most of the industry’s currently pressing price problems but will also be more convenient both for OPS and the industry. The Director of Price Stabilization has consulted with trade association repre¬ sentatives and members of the industry affected by this suDplementary regula¬ tion and consideration has been given to the information and suggestions re¬ ceived from them. AMENDATORY PROVISIONS Ceiling Price Regulation 17 is amended in the following respects: 1. Section 3 is amended to read as follows: Sec. 3. Geographical coverage. The provisions of this regulation are appli¬ cable to the 48 States of the United States and the District of Columbia. 2. Section 2T7 (a) is amended to read as follows: V (a) Export sales. Any export regula¬ tion which may hereafter be issued shall be applicable to export sales and sales for export of commodities covered by this regulation. 3. Section 27 is further amended by deleting the present paragraph (b) and redesignating paragraph (c) as para¬ graph (b). (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective May 26, 1952. Ellis Arnall, Director of Price Stabilization. May 20, 1952. 3 •. *• k . -vv'sv* . ( 4 f- • ' . - ■ ■ . ■ . ... 4 FILE following 81 Trans 34:C11 (8-8-52) 81 Trans 34:C13 Area Adjustment of Tank Wagon Ceiling Prices of Fuel Oil Distributors (Paragraph 11(d) added) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 17 Amendment 7 AUG. 8. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Celling Price Regulation 17, Arndt. 7| CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas AREA ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this amendment to Ceiling Price Regulation 17 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 17 provides for area adjustments of the ceiling prices of tank wagon dis¬ tributors of heating oils in a retail mar¬ keting area when the net margins of these distributors are reduced to such an extent that their earnings fall below the level of their earnings in the year ended May 31, 1950. While it does not appear that distrib¬ utors’ gross margins are less than those required by section 402 (k) of the De¬ fense Production Act, distributors in cer¬ tain retail marketing areas have sub¬ mitted data to show that increased costs have substantially reduced their net earnings. The industry earnings stand¬ ard, the basic standard by which OPS measures the need for ceiling price ad¬ justments, provides that relief may be considered if an industry can show that its current earnings are less than 85 per¬ cent of its earnings in the best three of the four years 1946-1949. Experience has demonstrated that the industry earnings standard is difficult to apply in the wholesaling and retailing of heating oil. There are many thou¬ sands of heating oil marketers at the tank wagon level—too many to consider in one data collection project. More¬ over, the need and the scope of relief re¬ quired are not uniform, and may be very different in one area than in another. Consequently it appears preferable in this case to provide for adjustments on an area rather than an industry wise ba¬ sis. In addition, the bookkeeping rec¬ ords of many of these heating oil job¬ bers are entirely inadequate to supply the information for the years 1946-1949 required for a direct application of the industry earnings standard. Analysis of available data shows that the granting of area adjustments on the basis of earn¬ ings in the year ended May 31, 1950, as provided in this amendment, will yield results in this field consistent with re¬ sults that would be obtained by use of the industry earnings standard. This approach is adopted as the best means of measuring the relief to be granted in the absence of complete data for the years 1946-1949. A reporting form is provided for use by the heating oil distributors requiring the submission of income data for the base period year and comparative data for the fiscal year ended May 31, 1952. In the formulation of this amend¬ ment there has been consultation with industry representatives, including trade association representatives, and consid¬ eration has been given to their recom¬ mendations. In the judgment of the Director of Price Stabilization the method of ceil¬ ing price adjustment established by this amendment is generally fair and equita¬ ble and is consistent with the purpose of Title TV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Section 11 to Ceiling Price Regulation 17 is amended by adding a new para¬ graph (d) to read as follows: (d) Area adjustments of tank wagon ceiling prices for fuel oil distributors. The Director of Price Stabilization may adjust the tank wagon ceiling prices for Heating Oils (kerosene, No. 1 and No. 2 Oil, Furnace Oil, Range Oil and Stove Oil) sold by tank wagon distributors in a retail marketing area when the net margins of such distributors in the area are insufficient to maintain their level of earnings in the fiscal year ended May 31; 1950. Such area adjustment shall be made only after sufficient informa¬ tion has been received for comparison of current earnings with the earnings of the fiscal year ended May 31, 1950. Ap¬ plications for area adjustments shall be filed with the OPS District Office hav¬ ing jurisdiction over the area for which an adjustment is requested. The data supporting such an application shall then be filed on OPS Public Form No. 151 which will be furnished by the OPS District Office when OPS determines that a survey of the area is appropriate. Application for the institution of an area survey shall be filed with the OPS District or Regional Office having juris¬ diction over the majority of the popula¬ tion of the area for which adjustment is requested. Such applications shall contain the following information: (1) Name and address. (2) Type of operation, e. g., bulk plant, tank-wagon distributor, etc. (3) A statement identifying the ap¬ plication as one made under CPR 17, Arndt. 7. (4) An identification of the market area for which you believe a ceiling price adjustment to be necessary. (5) Gallonage of light fuel oils deliv¬ ered at tank wagon level in the periods June 1949-May 1950 and June 1951- May 1952 showing separately, for each period, the gallonage delivered to resell¬ ers and to ultimate consumers. (6) Net operating income derived from the sale of light fuel oils in each of the periods specified in subparagraph (5) of this paragraph. (7) A statement as to why you believe an area ceiling price adjustment to be necessary for the market area identified in subparagraph (4) of this paragraph. This statement should be based upon in¬ formation readily available to you; any systematic collection of data from other firms will, where needed, be done by OPS and should not be undertaken by an ap¬ plicant under this section. If OPS determines that an area survey is appropriate, the survey will be conducted by the use of OPS Public Form 151. (Sec. 704, 64 Stat. 816, as amended; 60 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective August 13, 1952. Note: The reporting requirements of this amendment have been approved by the Bu¬ reau of the Budget In accordance with the Federal Reports Act of 1942. Ellis Arm all, Director of Price Stabilization. August 8, 1952. A ■ i; ' • k urn* ■ ^ w ' ' V . T| ? ro<vdht*K) Y J ? •> 10n>'fV'> • ' . b i :) <Wrt Ol .V '• 1*. . ) n-rtJ J« *f » v f t*e f»t Jta • 1 :■ !b- Y . \l !K9 T*fl - ’■ S. ■ . ,•;:!» ' -.i '/’V .!.-»■■■' . • ‘ • > ; ■ - . tt ' . mi ic* btbUi j si «o m.rv.. ■ 1 » 4+r 'K, ji . . j+bntiav. ■ x) - • ) r'-- ' ' ta '.■> • iitfcdi ■ t* 'vt**- . c.- ' ; i » ^ > .^■ri J \Li ■ ,.V1- V 3.T XlOvtyWA ■ • " a- ta ri . ffl'; • ■ *i• >{ - ! wry i.«<. mr4 tU . * .0 ’■ > i." * A' to ■ .5*a rl. . , -diO. 4 O v-. U ■' ■ » hi- si ^y»6 d 71 • - T ' >T. ■ t jf(f. •: : ' ' ./ = !.’ . s V-i-- /-.ft.i • Ml- j • « ju . : 'Wii » ■' •; re -■ • i; i'aab '..it <iV.. o :m ■ i FILE following 81 Trans 34:C13 (11-12-52) 81 Trans 34:C15 Amending Provisions of Section 23a, Etc. Ceiling Price Regulation 17 Amendment 8 NOVEMBER 12. 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 17, Arndt. 8| CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas, and Refinery Gas AMENDING PROVISIONS OF SECTION 23A TO PREVENT INCREASES IN GENERAL LEVELS OF AREA CEILING PRICES Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended. Executive Order 10161 (15 F. R. 6105i, and Economic Stabilization Agency General Order No. 2 (16 F. R. 738). this amendment to Ceiling Price Regulation 17 <16 F. R. 3033) is hereby issued. STATEMENT OF CONSIDERATIONS Price provisions in many contracts for the purchase of natural gas from pro¬ ducers and gatherers contain escalator clauses calling for increases in prices at stated intervals or under stated condi¬ tions. For reasons set forth in the State¬ ment of Considerations accompanying Amendment 1 to CPR 17 (effective April 16, 1951), the regulation permitted the operation of such escalator clauses in contracts in existence prior to January 25, 1951, the date of price control, ana permitted the escalated prices to be used by other sellers in establishing competi¬ tive and in-line ceiling prices. It also permitted the operation of so-called "favored nation" clauses, which bind buyers who pay an increased price to one of their sellers to pay an increased price to some or all of their other sellers. The large scale financing of gas pro¬ duction and interstate pipe lines was based in some measure on contracts call¬ ing for initially low prices subject to escalation. For that reason the Director has concluded that fairness to both buy¬ ers and sellers and stability in the indus¬ try make it desirable to continue to per¬ mit the unfettered operation of such of those contracts as were executed prior to the imposition of price control. How¬ ever, to permit sellers who did not base their planning and operations on such contracts to use them by reference to secure prices higher than the general levels of ceiling prices, which levels are generally fair and equitable, would be incompatible with the stabilization pro¬ gram. Therefore, since it now appears that escalator clauses calling for prices higher than the current general level ol ceiling prices will shortly take effect, this amendment to CPR 17 is issued. The amendment permits the escalator clauses in contracts entered into prior to or during the base period to operate. At the same time it prevents escalator clauses from establishing ceiling prices higher than base period ceilings for any sales other than those made under the particular contracts containing such clauses. It does this by limiting the use of "most favored nation” clauses in con¬ tracts and the use of the in-lining pro¬ visions of section 23a <c) of CPR 17 to those instances where their use will not result in piercing the general area ceil¬ ing, which is the highest price for com¬ parable sales of gas during the base period. This amendment has the further effect of preventing sellers from in-lining their prices with sellers whose prices may be increased pursuant to state minimum price regulations. While OPS is required to recognize such minimum prices as ceilings under section 402 (1) of the De¬ fense Production Act, it need not and should not give the regulations or orders establishing minimum prices greater scope than the state itself does. This is especially true since those regulations and orders are based on state purposes and policies not necessarily consonant with those of the Defense Production Act. In the formulation of this amend¬ ment there has been consultation with industry representatives, and considera¬ tion has been given to their recom¬ mendations. In the judgment of the Director of Price Stabilization ceiling prices estab¬ lished by this amendment will be gen¬ erally fair and equitable and consistent with the purpose of Title IV of the De¬ fense Production Act of 1950, as amended. AMENDATORY PROVISIONS Ceiling Price Regulation 17 is amend¬ ed in the following respects: 1. Section 23a (c) (2) <i) is amended to read as follows: (2' Existing contracts. <i> Where a buyer and seller have entered into a contract prior to January 25, 1951 such contract may be carried out in accord¬ ance with its terms, except that no term of any such contract providing for an increase in price based on an increase in price under any other contract, may be carried out if to carry it out will result in a price above the highest price paid during the base period for gas of the same particular type by a purchaser of the same class in the same market or producing area. 2. Section 23a <c> (4) is amended to read as follows: (4) Limitation on in-line pricing. Notwithstanding any other provisions of this regulation, no ceiling prices shall be established under sections 23a <c) (2) <ii), or 23a <c) (3) (i), or 23a <c) (3) (ii), above the highest price paid during the base period for gas of the same par¬ ticular type by a purchaser of the same class in the same market or producing area. (Sec. 704, 64 Stat. 816, as amended, 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective November 17, 1952. Tighe E. Woods, Director of Price Stabilization. November 12, 1952. ' >*• O *-< vi I >. .j w . . i . - nfh^xi'ldr ♦£ ■ ft 5 ••; •< 'if . C • it'i '• - • I 1 . . ■ . FILE following 81 Trans 34:C15 (1-15-53) 81 Trans 34:C17 Transportation Ceiling Price Regulation 17 Amendment 9 JANUARY 15, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Ceiling Price Regulation 17, Arndt. 9( CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Gases, Natural Gas, Petroleum Gas, Casing¬ head Gas and Refinery Gas TRANSPORTATION AND TAXES Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amendment 9 to Ceiling Price Regula¬ tion 17 is hereby issued. STATEMENT OF CONSIDERATIONS The accompanying amendment to Ceiling Price Regulation 17 clarifies the section dealing with transportation and also makes certain increases in ceiling prices permissible where transportation factors would otherwise disrupt normal industry practice. Some difficulties have arisen under the regulation because of the stipulation that increases in ceiling prices shall not be in excess of increased transportation costs actually incurred. Strict adher¬ ence to this provision necessitates elab¬ orate and burdensome accounting proce¬ dures where inventories were on hand before the transportation increase oc¬ curred. This amendment permits the ceiling price to reflect increased trans¬ portation costs as of the day the trans¬ portation increases are effective or on the effective date of this regulation if the transportation increase has already become effective. The transportation section was not intended to permit increased ceiling prices based on higher transportation rates on crude or semi-finished stocks. The language of the amendment specifi¬ cally excludes such increases as a basis of increasing ceiling prices. However, it is recognized that certain sellers must be permitted to reflect increases in in¬ bound freight rates if a disruptive effect on the market is not to result. The great percentage of he products covered by this regulation are produced and sold by the major integrated petroleum com¬ panies. The transportation costs in¬ curred by these sellers in the main are for outbound transportation. However, some blenders and resellers who must purchase their blending stocks or fin¬ ished materials from these integrated companies incur inbound freight costs. The inbound freight they incur parallels the outbound freight of the integrated producers, who account for the greater part of the production, and who are in competition with the smaller independ¬ ent resellers and blenders. To permit these smaller operators to retain their customary price relationship with those sellers supplying the bulk of these prod¬ ucts, Ceiling Price Regulation 17 has permitted inbound freight increases on finished products as a basis for increased ceilings. This amendment extends this permission for these same reasons to those few sellers who incur inbound freight on productsyto be blended or further refined. In the marketing of petroleum there are many instances where the market price of a product at a delivery point, while reflecting some elements of trans¬ portation, will not reflect the exact amount of freight that the individual seller incurs in making delivery to that point. Thus, a particular seller may use his freight cost in shipping product to one point in a pricing area for estab¬ lishing prices throughout the pricing area. Again the seller may have had to absorb some freight because he has sold at a market price based on product shipped from a basing point. Converse¬ ly, he may have had an advantage in selling in a market where the price re¬ flected freight from a point farther than his point of supply. In another situ¬ ation a seller's market price may cus¬ tomarily reflect the rates for a means of transportation other than the means he actually uses, but which is the means normally used by most other sellers in that area. In order to maintain the stability of the market this regulation permits increases in ceiling prices based on the amount of increases in the trans¬ portation rate customarily used by the seller as a factor in his price if his base period prices reflected such customary rate. In this way sellers may not in¬ crease their ceiling prices more than they would have in ordinary practice, nor would those who had no or a lesser increase in transportation rates find themselves with ceiling prices that do not reflect their customary price rela¬ tionship with other sellers in the market. Instances have come to the attention of the Office of Puce Stabilization where sellers have undertaken to raise ceiling prices because of a shift from a normal method of transportation or normal source of supply to a higher cost method of transportation or a source of supply incurring a higher transportation cost. It was not intended to provide for ad¬ justment of ceiling prices because of cost increases resulting from shifts in source of supply. It is stated explicity in the amendment that such abnormal supply situations do not qualify the seller for an increase in his ceiling prices under the transportation section of the regulation. The section of Ceiling Price Regulation 17 dealing with taxes is amended to re¬ quire a reduction of ceiling prices cor¬ responding to tax reduction where ceiling prices include taxes, as well as permit¬ ting ceiling prices to increase where taxes are increased. In the formulation of this amend¬ ment there has been consultation with industry representatives, including trade association representatives, to the ex¬ tent practicable, and consideration has been given to their recommendations. In the judgment of the Director of Price Stabilization the changes set forth in these amendatory provisions are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS 1. Section 25 of Ceiling Price Regula¬ tion 17 is amended to read as follows: Sec. 25. Transportation, (a) A seller may add to the applicable ceiling prices' determined under other sections of this regulation an amount calculated in ac¬ cordance with whichever of the follow¬ ing three methods conforms to his cus¬ tomary practice in the base period : (1) A seller may add the increase in his unit cost resulting from transporta¬ tion rate increases after January 25, 1951 permitted by Federal or State regu¬ latory bodies or by the Office of Price Stabilization. Such increases may in¬ clude excise taxes, which are a part of or are applicable to the increase. If the increase in transportation rates occurs after the effective date of this regula¬ tion the higher ceiling prices may be made effective on or after the day that the increased transportation rate goes into effect. (2) Where the transportation of the product is in facilities owned or con¬ trolled by the seller and is in lieu of movement by a regulated carrier, he may add the unit increase that would be per¬ mitted him in subparagraph (1) of this paragraph, had he used such regulated carrier. (3) Where a seller in accordance with his customary pricing practice included in his selling price during the base period the transportation rate from a point other than his own source of supply, or the transportation rate to a point in a pricing area other than the rate to the actual point of delivery, or the rate of a means of transportation other than that actually used by him, he may add the unit increase permitted by Federal or State regulatory bodies or by the Office of Price Stabilization in such transportation rate. (b) A seller may round the additions to his ceiling price determined under this section to the nearest cent or frac¬ tion of a cent in accord with his cus¬ tomary practice. If a seller elects to round one ceiling price he must similarly 81 Trans 34:C18 round all his ceiling prices increased un¬ der this section to reflect decreases as well as increases. (c) Under this section blenders or re¬ finers may increase the ceiling price of a finished product or for a product which has been further processed only up to an amount which will reflect the propor¬ tionate freight increases of the various components or the proportionate freight increases for each refined product, ex¬ cept that increases in the cost of trans¬ porting crude petroleum and increases in the cost of transporting, for further processing, semi-finished materials be¬ tween units or controlled subsidiaries of the same company shall in no case be used as the basis of increasing ceiling prices under this section. (d) Nothing in this section shall au¬ thorize a seller to increase his ceiling prices as a result of higher transporta¬ tion costs (including excise taxes there¬ on) caused by a change from the normal source of supply or a change to a differ¬ ent method of transportation. <e) A seller adjusting his ceiling price under this section shall maintain a rec¬ ord of his adjustment and such records must substantiate that the adjustments relate directly to base period practice. 2. Section 26 is amended by adding to the section the following undesignated paragraph: If such taxes are included in the ceil¬ ing prices established under the provi¬ sions of this regulation, and such tax is reduced or repealed after January 25, 1951, you must reduce your ceiling price by the amount of the tax reduction. You must also reduce your ceiling price by the amount of reduction in the ceiling price of your supplier due to a repeal or reduction of such a tax. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective January 20, 1953. Note: The record-keeping requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Joseph H. Freehill, Director of Price Stabilization. January 15, 1953. FILE following 81 Trans 34:C15 (11-26-52) 81 Trans 34:101 S. O. l CPR 17, SEC. 11 (d) NOVEMBER 4, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization |Celling Price Regulation 17, Section 11 (d). Special Order 1] Olympia-Tenino Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (kerosene, No. 1 and 2 oils, furnace oil, range oil and stove oil) by tank wagon distributors in the Olympia-Tenino marketing area. The Office of Price Stabilization was requested by distributors in the Olym¬ pia-Tenino marketing area to conduct a survey to determine whether increased costs have reduced the net margins in the area below a point sufficient to main¬ tain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward adjust¬ ment is necessary to bring earnings to that level. There are hundreds of heating oil sell¬ ers at the tank wagon level in this region and the need for relief is not uniform but varies from marketing area to mar¬ keting area. Thus it is concluded that the adjustment must be on a marketing area basis, rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area of reseller competition, which is the same as the area of the free deliv¬ ery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950.' It is therefore consistent with the pro¬ visions of Section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Olympic-Tenino marketing area for tank wagon sales of heating oils (kerosene, Nos. 1 and 2 oils, furnace oil, range oil and stove oil) to consumers shall be increased by $0,004 per gallon. The Olympia-Tenino mar¬ keting area is defined as the Olympia- Tenino free delivery zone. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on November 5, 1952. Harold Walsh, Regional Director, Office of Price Stabilization, Region XIII. November 4, 1952. M 1 ■ ■j; : * . r. i ■ • . i ■ ■ • • 1 ' > •• • ' t ■ > ■ . •• ' X • ", • i j • . ' qi . O - ■ ■ . >Jt . ,< . jy . •. .• . . ituam - :t ; n : • • :• . ' • f >-• * - ' ■ : - ■ i ■ r , ^ d FILE following 81 Trans 34:103 (1-30-53) 81 Trans 34:103.1 S. 0.2 CPR 17. SEC. 11 (d) AMDT. 1 JANUARY 15. 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Celling Price Regulation 17. as amended. Section 11 (d), Special Order 2. Arndt. 1] Washington. D. C., Metropolitan Area AREA ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS; READ¬ JUSTMENT OF PRICES Statement of considerations. As the Statement of Considerations accom¬ panying Special Order 2 makes clear, that order was designed to restore the net earnings of heating oil distributors in the Washington. D. C., metropolitan area to the level of the fiscal year ending May 31, 1950. In arriving at the ad¬ justment in ceiling prices necessary to accomplish this result consideration was given to the fact that under the pro¬ visions of Supplementary Regulation 10 to Ceiling Price Regulation 17 fuel oil distributors on the East Coast, which included the Washington, D. C., area, were granted as of June 30, 1952, a ceil¬ ing price increase of $0.0015 per gallon over and above the spelled-out increases in their product cost effected by SR 10. This increase of $0.0015 was granted pursuant to instructions from Dr. J. R. Steelman, then Acting Director of the Office of Defense Mobilization, simul¬ taneously with the grant of a ceiling price increase of $0.0065 per gallon to those who supplied product to the Wash¬ ington area distributors. Dr. Steelman’s instructions, which were made part of the Statement of Considerations in SR 10, intended this $0.0015 per gallon to com¬ pensate local distributors for the addi¬ tional expenses which they would incur in handling higher priced product. Recent representations by and confer¬ ences with representatives of the Wash¬ ington area distributors have convinced the Office of Price Stabilization that this intention was not fully carried out in Special Order 2, since the computa¬ tions that resulted in the adjustment granted in Special Order 2 treated the $0.0015 as additional net income to the fuel oil distributors rather than as com¬ pensation for increased costs. There¬ fore this amendment first increases the amount of the adjustment in Special Order 2 by $0.0015 per gallon. Amend¬ ment 7 contemplates the rounding of adjustment to the nearest tenth of a cent. Accordingly, the amendment in¬ cludes also an additional $0.0015. This brings the total adjustment granted by this amendment to $0,002 per gallon. With the $0,001 granted in the original special order the result is a total in¬ crease in ceiling price under section 11 (d) of CPR 17 of $0,003 per gallon. Amendatory provisions. For the rea¬ sons set forth in ibft statement of con¬ siderations accompanying this amend¬ ment and the statement of considerations in Special Order 2 and pursuant to the provisions of section 11 <d) to Ceiling Price Regulation 17, as amended. It is ordered: 1. That paragraph 1 of Special Order 2 issued under Section 11 (d) of Ceiling Price Regulation 17, as amended, is amended to read as follows: 1. That the tank wagon ceiling price for Heating Oils (Kerosene, No. 1 and No. 2 Oil, Furnace Oil, Range Oil and Stove Oil) sold by tank wagon distrib¬ utors in the Washington, D. C„ metro¬ politan area, may be increased $0,003 per gallon. 2. All provisions of Ceiling Price Regu¬ lation 17, as amended, except as incon¬ sistent with the provisions of this order and all provisions of Special Order 2, except as amended herein, shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied or revoked by this Office at any time. Effective date. This Special Order shall become effective January 15, 1953. Vincent A. Holmes, District Director. January 15. 1953. 1.801:£8 amnT 18 (€3-08-1) 201:^8 aiusiT Itf ^niwoU.1 d-xii s .0 Z <b) n 33a 3£io r .TOMA ,31 YftAtTVIAt, S40ITAXIJI8AT2 3D1HCI 30 3DB30 HOT&*tiH2AW ariJ -sof .*4TOJajoo-rts \no)cbjts wA H03 to }D3Xn^B>J2 Sildi fU fUlOl 2i102 -basitJfl anid sniYnjsqmoooa znoiJaisbi? asouarobianoo to jnomsJaJz oil! bru U'^rx 3fij oj 'HFuaruci baa 2 wbxO LsxosqB ai aoilisO od <b> II aoiJ392 to anc* :voiq Vi ft 'xsbcis>;tu. .'I acudalxrasH 3'£i,:5 v Jasmine 1abiO UiooqS lo I riqarsaiaa JsriT .1 ^nifiaO ’o ' I- «I :iotiy& isbnu c-wz*i S gi .bsbnsiits ?-s ."I noltalxrio^t 9ji. i ; 2woiiol zb baai od babnacca yiitq $xxrii&> no?ww Jtast ?t*$ tarfT .x bae x oH eliO ajnitaap iol boa LxO 33n^ iiO 90Sfny3 ,IiO £ oVf -dndaib n0-3*5-# ioad vd bfoa GiO 9vo>3 -oidsm ,.0 Q .nodsniifesW 9 rid f« £06 0? b9&s9ioni 9d y.Btxi .B9xs n&Jdocj .floUsB naq -ds^H son*! snrixoG to anoizivonq HA S -noorii za ;qaoxo ,b9bn9ma x-s ,71 noidal isb”o airfd to snoizivoiq 9f'J dim tns>J2X2 ), r-tbtO ixuosqS to enotaivoiq ua ooa ai£j2jai Hade .nixmri babosnva &g .hjsoxb -rooo af-i od 2*; toatia bn a aoiot :u. •-* :afcTO airfd bdTJYOO a1'bc vt -thorn .foabaams sd ■xsbio adT ,b amiJ vxjta d* aoffiO airfi *d fcssSovfn to r>-n fslriO IsioeqS aixiT atob ^nos^/l ."cv;. ,51 naunal 9Yt43aSa snx.ooad dada .aawioH .A TvrsowiV .■toloaisCL ioniaiCl .E38I ,31 Y3A-JKAL yailiv-i s to jaats srid rfdbtf Yteuoa/mt oJ notlas tsq 3300.02 to ozaoiani 3>nq -rifciV/ jjj 03 ioubanq bstlQqoa oriw ©soxU 2 fl=sml39t3 .Td atoJqdiiJgib xsaia notaai ad.: u- Itaq sbam 9tsw do; dw ,?xtoWsutJ?.ni 01 r aaoiiatabi.-noO to tneaiotsta ' *03 oJ aotlfiB isq 5x00.0$ gjdi bsbnalni -ibh. 9dJ lot BioJudn$Z£b Iso«>i 9l83Xt9q mom bltrow Y3rfj rioxdw zoaooqxa taaou .jouLu-xq bsoiiq tdriBtd B«Ub«ed ni -ist-too baa 'id znoiJfda.-aoiqY! :a;>095T -r??.*nW 3rfJ to 29vttain9R9tq9'i xtt;# rsons bsonivnoo nvari zicdi'di’.jai.b sets notani iarfj noitssiIjdx'J3 soi-rl to 90IBO ■sdt too boirifio vjttft ton zbw iXoiJxi9Jnl 2id) -stcrqcaoo add 90x112 .£ tabiO 'ai.0‘.iq3 ni Jnsmtaxxtba add ai batliiaai iartJ anoi? 9fi, S' tftinO iair^qS m bsjr.aVB »d: oS saso:>ci isa isnoitibba z& 5100 0$ -moo 2B aadJ tsriJ-n atoiudiitaib iio l*u\ -913rlT .23203 baeaaioai tot noidaansq vdj £9?JB9toni J3tft Jaambaoifiu e 15 slot lai39qS ni tnamtaotba 9rfd to .tnuoxna -basmA .noIU3 tsq 3100.0$ vrf 2 isbiO to ^.aibcwox arid zslslqiit-j-tnoo v Jnam it lo rUasO jaaiaen add od doamdancbs -ai dnarabnama arid ^IsxubtooaA inso ?.idT .3100.0$ JanoiJibba na oaia aobulo vd b9ineis inamdgutba lat&d add z%xihd aoliss t9q £00.0$ u3 jasmbmme sirid (eniaho add ax bednaia 100 0$ add ridiW -rti [iiiad a e; Jiusat add i9bio Iai39q2 It noid-joa tabnw 93iiq aniliso ni azaeno .goUbs i9q £00.0$ to n a^o to <b- MOITAS! JIB ATS DIMOHODSi Y3H30A noibxiiidoif sah1? fs -a.xtftO ,£;.?i>C3J3xe «o ,ri aol.iAloa»a solt*? salli»Ot f X .tbffltA ,C isbiO IslvsqR . (t»> n /xol««8 A3SA MATIJOIOBTsM 0 .fl .«OT3KiHE>W L»1«JI23 XOOAW 7TV5.AT 'SO TK3MT20tOA ASS/. -cash : asonraxBTaia jxo jtjtrt to zsouit 2.-I3IH9 tO TWSMT?,TJt 9;1J aA ,t«o:iBT9lmrto3 \o In^irtsSoXS -faoaat aaolistobfencO to dnsm^dadB .taslo gaaliixtr S tabiC ialoaqS ’gfllyaaq v>rid 9103891 o3 bOHBia9b aa# Tsbto dadd amdiidixdzjb do saidaari tc ebxvxubo Jstx njJdiioqotdsm ,.D G .nodBntdxaW srld at mxibti9 isov; Iaos3 srti to ftva odd od asta -ba add da ^aivliis nl 533i .i£ isU o-i rueaasosn ?-9onq naihio nl inacaizul ■eav aoidatobianoo Jlu?,9i eidd dsxlqinoaoa oiq 9rid i9bxx0 jsdi Jo.at snd od navis D> no;daaxs;-H v.iaxn9ra*r;q..- •- to BGOiAiv Xic feul>l ir.-.»fdU3dH 9-i-dI BdiUaO od doirtw ,32a-.;v daa3 9rid no aiotadiideib .csia '.’. .nodarnxiaaW sdd babiflam -1x93 a ,S36i .OS 9iwX. to ai ixodnata 9t»w «ols as taq 3100.0$ to aaaatoxT; oottq Bfli Z9ZP373Gi d«o-l)9ll9qa sdd '3/od.a bna t3<ro 01 sia {d b9J09H« ;?o-3 •! v i tisrid a* boj.’uvr.) d8‘# 3100.0$ to -.v : aoni zirfT ;?• i .id mo*1 ?x!'.--itDoi,txdf 01 daw/siyq ■j.-i:- to ioi39i;.a snidr’A a^dd .namii)9d8 -i/jmia .rmilasiUdoM saaataQ to soffiO FILE following 81 Trans 34:103 (11-26-52) 81 Trans 34:105 S. O. 3 CPR 17, SEC. 11 (d) NOVEMBER 12, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Celling Price Regulation 17, Section 11 (d), Special Order 3] Bremerton-Port Orchard Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils. Furnace Oil, Range Oil, and Stove Oil) by tank wagon distributors in the Bremerton-Port Orchard marketing area. The Office of Price Stabilization was requested by distributors in the Bremer¬ ton-Port Orchard marketing area to conduct a survey to determine whether increased costs have reduced the net margins in the area below a point suffi¬ cient to maintain the level of earnings in the year ending May 31, 1950. The results of that survey show that an up¬ ward adjustment is necessary to bring earnings to that level. There are hundreds of heating oil sellers at the tank wagon level in this Region and the need for relief is not uni¬ form but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area of reseller com¬ petition, which is the same as the free delivery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is, therefore, consistent with the provi¬ sions of Section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Bremerton-Port Orchard marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be in¬ creased by $0,005 per gallon. The Brem¬ erton-Port Orchard marketing area is defined as that area in which dealers located in Bremerton and Port Orchard make deliveries without an additional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on November 13, 1952. Paul A. Volpe, Acting Regional Director, Of¬ fice of Price Stabilization, Re¬ gion XIII. November 12, 1952. * * ■ FILE following 81 Trans 34:105 (2-25-53) 81 Trans 34:R107 (REMOVE to Source File 81 Trans 34:107) S. O. 4, Revised CPR 17, SEC. 11 (d) FEBRUARY 6. 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Celling Price Regulation 17, Section 11 (d), Special Order No. 4, Revised] Bellingham Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This re¬ vision of Special Order No. 4 extends the coverage of the Bellingham-Femdale marketing area to include certain addi¬ tional cities and towns. The Statement of Considerations accompanying Special Order No. 4, being equally applicable to the extended area, is incorporated here¬ in by reference. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Bellingham market¬ ing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to con¬ sumers shall be increased by $0,004 per gallon. The Bellingham marketing area is defined as that area in which dealers located in Bellingham, Femdale, Blaine, Lynden, Sumas, Everson and Deming make deliveries without an additional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this revised order, shall remain in full force and effect as to the commodities covered by this re¬ vised order. 3. This revised order may be amended, modified, or revoked at any time. Effective date. This revised Special Order shall become effective on Febru¬ ary 7, 1953. Muriel Mawer, Acting Regional Director, Re¬ gion XIII, Office of Price Stabilization. February 6, 1953. <# ' YDM3K5 ■ iii FILE following 81 Trans 34:107 (11-26-52) 81 Trans 34:109 S. 0.5 CPR 17, SEC. 11 (d) NOVEMBER 12, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION - AGENCY Office of Price Stabilizotion |Ceiling Price Regulation 17, Section 11 (d), Special Order 5) Mt. Vernon-Sedro Woolley-Burling- TON AND ANACORTES MARKETING AREA ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils. Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Mt. Vernon-Sedro Woolley-Burling¬ ton and Anacortes marketing area. The Office of Price Stabilization was requested by distributors in the Mt. Vernon-Sedro Woolley-Burlington and Anacortes marketing area to conduct a survey to determine whether increased costs have reduced the net margins in the area below a point sufficient to main¬ tain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward ad¬ justment is necessary to bring earnings to that level. There are hundreds of heating oil sellers at the tank wagon level in this Region and the need for relief is not uniform but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis rather than on a re¬ gion-wide basis. For the purpose of this special order the market area has been defined as the area of reseller competi¬ tion, which is the same as the free de¬ livery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is, therefore, consistent with the pro¬ visions of Section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Mt. Vernon-Sedro Woolley-Burlington and Anacortes mar¬ keting area for tank wagon sales of heat¬ ing oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,002 per gallon. The Mt. Vernon- Sedro Woolley-Burlington and Anacortes marketing area is defined as that area in which dealers located in Mt. Vernon, Sedro Woolley, Burlington and Anacortes make deliveries without an. additional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, mod¬ ified, or revoked at any time. Effective date.' This special order shall become effective on November 13, 1952. Paul A. Volpe, Acting Regional Director, Office of Price Stabilization, Region XIII. November 12, 1952. * ' ' FILE following 81 Trans 34:109 (2-16-53) 81 Trans 34:111 S. O. 6 CPR 17, SEC. 11 (d) DECEMBER 9, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Ceiling Price Regulation 17, Section 11 (d), Special Order No. 6] Adjustment of Tank Wagon Ceiling Prices in the Wahkiakum County Marketing Area Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Wahkiakum County, Washington, marketing area. The Office of Price Stabilization was requested to conduct a survey to deter¬ mine whether increased costs have re¬ duced the net margins of heating oil distributors in the Wahkiakum County, Washington, marketing area below a point sufficient to maintain the level of earnings in the year ending May 31,1950. The results of that survey show that an upward adjustment is necessary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uni¬ form, but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis, rather than on a re¬ gion-wide basis. For the purpose of this special order the boundaries of the mar¬ ket area have been determined to be the same as the boundaries of Wahkiakum County, Washington. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore consistent with the pro¬ visions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Wahkiakum County marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be in¬ creased by $0,003 per gallon. The Wah¬ kiakum County marketing area is de¬ fined as the area within the boundaries of Wahkiakum County, Washington. 2. All provisions of Ceiling Price Regu¬ lation 17, except as inconsistent with the provisions of this Order shall remain in full force and effect as to the commodi¬ ties covered by this Order. 3. This Order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on December 10, 1952. Harold Walsh, Regional Director, Office of Price Stabilization, Region XIII. December 9, 1952. ; * . ' . . " 1 ' J » . •••■<- . ■ !i r as ■ -l ' ■! ->■■ ■. ■ v 'I JWJOf i ». < • t ■ :■ • •• • 1 . -X t FILE following 81 Trans 34:111 (2-16-53) 81 Trans 34:113 S. O. 7 CPR 17. SEC. 11 (d) DECEMBER 9, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Ceiling Price Regulation 17. Section 11 (d). Special Order No. 7) Adjustment of Tank Wagon Ceiling Prices in the Wasco and Sherman Counties. Oregon, and Klickitat County, Washington Marketing Area Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the marketing area of Wasco and Sherman Counties, Oregon, and Klicki¬ tat County, Washington. The Office of Price Stabilization was requested to conduct a survey to deter¬ mine whether increased costs have re¬ duced the net margins of heating oil distributors in the above named market¬ ing area below a point sufficient to main¬ tain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward ad¬ justment is necessary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uni¬ form, but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis, rather than on a re¬ gion-wide basis. For the purpose of this special order the boundaries of the mar¬ ket area have been determined a§ Wasco and Sherman Counties, Oregon, and Klickitat County, Washington. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore, consistent with the pro¬ visions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Wasco and Sherman Counties, Oregon, and Klickitat County, Washington, marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be in¬ creased by $0,001 per gallon. The Wasco and Sherman Counties, Oregon, and Klickitat County, Washington, market¬ ing area is defined as the area within the boundaries of the respective counties. 2. All provisions of Ceiling Price Regu¬ lation 17, except as inconsistent with the provisions of this Order shall remain in full force and effect as to the com¬ modities covered by this Order. 3. This Order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on December 10, 1952. Harold Walsh, Regional Director, Office of Price Stabilization, Region XIII. December 9, 1952. c ... - ; . ■ • ' - . V i \ < ,r \1-k ! • 'v • kl- S-', • ' l\ ■ • t. f | n , FILE following 81 Trans 34:113 (2-16-53) 81 Trans 34:115 S. 0.8 CPR 17. SEC. 11 (d) JANUARY 6. 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization |Ceiling Price Regulation 17, Section 11 (d), Special Order No. 8| Washington ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS, EVER¬ ETT - MARYSVILLE - SNOHOMISH - ARLING¬ TON-MONROE AND STANWOOD MARKETING AREA Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Everett- Marysville -Snohomish - Ar - lington-Monroe and Stanwood market¬ ing area. The Office of Price Stabilization was requested by distributors in the Everett- Marysville - Snohomish - Arlington - Monroe and Stanwood marketing area of the State of Washington to conduct a survey to determine whether increased costs have reduced the net margins in the area below a point sufficient to main¬ tain the level of earnings in the year end¬ ing May 31, 1950. The results of that survey show than an upward adjust¬ ment is necessary to bring earnings to that level. There are hundreds of heating oil sellers at the tank wagon level in this Region and the need for relief is not uni¬ form but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area of reseller com¬ petition, which is the same as the free delivery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is, therefore, consistent with the provisions of Section 11 (d) of Ceil¬ ing Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, it is ordered: 1. That the ceiling price of heating oil distributors in the Everett-Marysville- Snohomish-Arlington-Monroe and Stan¬ wood marketing area of the State of Washington for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,002 per gallon. The Everett-Marysville- Snohomish-Arlington-Monroe and Stan¬ wood marketing area is defined as that area in which dealers located in the com¬ munities of Everett, Marysville, Sno¬ homish, Arlington, Monroe and ‘Stan¬ wood customarily make deliveries with¬ out an additional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the commod¬ ities covered by this order. 3. This order may be amended, mod¬ ified, or revoked at any time. Effective date. This special order shall become effective on January 7, 1953. Harold D. Walsh, Regional Director, Office of Price Stabilization Region XIII. January 6, 195C ■ ... x FILE following 81 Trans 34:115 (2-16-53) 81 Trans 34:117 S. 0.9 CPR 17, SEC. 11 (d) JANUARY 23, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY • Office of Price Stabilization [Celling Price Regulation 17, Section 11(d), Special Order No. 9] Clatsop County, Oreg., Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES Statement of consideration. This spe¬ cial order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Flange Oil and Stove Oil) by tank wagon distributors in the Clatsop County, Oregon, marketing area. The Office of Price Stabilization was requested to conduct a survey to deter¬ mine whether increased costs have re¬ duced the net margins of heating oil dis¬ tributors in the Clatsop County, Oregon, marketing area below a point sufficient to maintain the level of earnings in the year ending May 31,1950. The results of that survey show that an upward ad¬ justment is necessary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uni¬ form, but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis, rather than on a re¬ gion-wide basis. For the purpose of this special order the market area has been defined as the area within the boundaries of Clatsop County, Oregon. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore consistent with the pro¬ visions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considerations and pursuant to the provisions of section 11 (d) of Ceiling Ih-ice Regulation 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Clatsop County, Ore¬ gon, marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, F\irnace Oil, Range Oil, and Stove Oil) to consumers shall be increased by $0,004 per gallon. The Clatsop County marketing area is defined as the area within the boundaries of Clatsop County, Oregon. 2. All provisions of Ceiling Price Regu¬ lation 17, except as inconsistent with the provisions of this order, shall remain in full force and effect as to the commod¬ ities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 24,1953. (s) Harold Walsh, Regional Director. Office of Price Stabilization. Region XIII. January 23, 1953. FILE following 81 Trans 34:117 (2-16-53) 81 Trans 34:119 OFFICE OF PRICE STABILIZATION WASHINGTON S. O. 10 CPR 17, SEC. 11 (d) JANUARY 23, 1953 ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Ceiling Price Regulation 17, Section 11 (d), Special Order No. 10] Cowlitz County, Wash., Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Cowlitz County, Washington, mar¬ keting area. The Office of Price Stabilization was requested to conduct a survey to deter¬ mine whether increased costs have re¬ duced the net margins of heating oil distributors in the Cowlitz County, Washington, marketing area below a point sufficient to maintain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward adjustment is neces¬ sary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uniform, but varies from marketing area to marketing area. Thus it is con¬ cluded that the adjustment must be on a marketing area basis, rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area within the boundaries of Cowlitz County, Washing¬ ton. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore consistent with the provi¬ sions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the statement of considera¬ tions and pursuant to the provisions of section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Cowlitz County, Washington, marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,004 per gallon. The Cowlitz County marketing area is de¬ fined as the area within the boundaries of Cowlitz County, Washington. 2. All provisions of Ceiling Price Regu¬ lation 17, except as inconsistent with the provisions of this order, shall remain in full force and effect as to the commodi¬ ties covered by this order. 3. This order may be amended, modi¬ fied or revoked at any time. Effective date. This special order shall become effective on January 24, 1953. Harold Walsh, Regional Director, Office of Price Stabilization Region XIII. January 23, 1953. ' •! • nci' \ jt . T -i t> '*» ' • • ' 1 ■i ... 'V,V . i. .- - > • ■ J . Si- iiO .1 . . ,. -I 14 * v : !• ■ - • ■: ■ ■ FILE following 81 Trans 34:119 (2-16-53) 81 Trans 34:121 S.0.11 CPR 17, SEC. 11 (d) JANUARY 26, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Ceiling Price Regulation 17, Section 11 (d), Special Order No. 11] Linn County, Oregon, Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES Statement of Considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil, and Stove Oil) by tank wagon distributors in the Linn County, Oregon, marketing area. The Office of Price Stabilization was requested to conduct a survey to deter¬ mine whether increased costs have re¬ duced the net margins of heating oil dis¬ tributors in the Linn County, Oregon, marketing area below a point sufficient to maintain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward ad¬ justment is necessary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uniform, but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis, rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area within the boundaries of Linn County, Oregon. The adjustment granted by this or¬ der does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore consistent with the provisions of Section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considerations and pursuant to the provisions of section 11 (d) of Ceiling Price Regulation 17 and Delegation of Authority 72, it is ordered: 1. That the ceiling price of heating oil distributors in the Linn County, Oregon, marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,004 per gallon. The Linn County mar¬ keting area is defined as the area within the boundaries of Linn County, Oregon. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order, shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 27, 1953. E. R. This sen, Acting Regional Director, Office of Price Stabilization, Region XIII. January 26, 1953. ■ r&fe \ . to i ■■ ‘ I v 0> !' ' * *© FILE following 81 Trans 34:121 (2-16-53) 81 Trans 34:123 S. O. 12 CPR 17, SEC. 11 (d) JANUARY 26, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Celling Price Regulation 17, Section 11 (d), Special Order No. 12] Wenatchee-Leavenworth and Cashmere, Washington Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Wenatchee-Leavenworth and Cash- mere, Washington Marketing Area. The Office of Price Stabilization was requested by distributors in the Wenat¬ chee-Leavenworth and Cashmere, Wash¬ ington marketing area to conduct a sur¬ vey to determine whether increased costs have reduced the net margins in the area below a point sufficient to maintain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward adjustment is necessary to bring earnings to that level. There are hundreds of heating oil sell¬ ers at the tank wagon level in this Re¬ gion and the need for relief is not uni¬ form but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis rather than on a re¬ gion-wide basis. For the purpose of this special order the market area has been defined as the area of reseller competi¬ tion, which is the same as the free de¬ livery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is, therefore,'consistent with the pro¬ visions of section 11 <d) of Ceiling Price Regulation 17 and Delegation of Author¬ ity No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Wenatchee-Leav¬ enworth and Cashmere, Washington marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,002 per gallon. The Wenatchee- Leavenworth and Cashmere, Washington marketing area is defined as that area in which dealers located in Wenatchee, Leavenworth and Cashmere, Washing¬ ton, make deliveries without an addi¬ tional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 27, 1953. E. R. Thissen, Acting Regional Director, Office of Price Stabilization, Region XIII. January 26, 1953. :,v* ■ ■■ ' -?■ ; > . ji- . m , /. • ... VT: •" « *■- n >. > ■ - ' r ’ ttliO • 1 ■ • . >j ■ " : 1 : ■ . . : ■ 4 • • • •• • • * . ■ -• - - • '->! ' f :■ * • » : : - . ■ ■**' =>h VjV ' i . } t. ' » ■ • ' FILE following 81 Trans 34:123 (2-16-53) 81 Trans 34:125 S. O. 13 CPR 17, SEC. 11 (d) JANUARY 26, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization |Ceiling Price Regulation 17, Section 11 (d). Special Order No. 13) Jackson County, Oregon, Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Jackson County, Oregon, market¬ ing area. The Office of Price Stabilization was requested to conduct a survey to deter¬ mine whether increased costs have re¬ duced the net margins of heating oil distributors in the Jackson County, Oregon, marketing area below a point sufficient to maintain the level of earn¬ ings in the year ending May 31, 1950. The results of that survey show that an upward adjustment is necessary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uni¬ form, bait varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis, rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area within the boundaries of Jackson County, Oregon. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore consistent with the pro¬ visions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority 72, it is ordered: 1. That the ceiling price of heating oil distributors in the Jackson County, Oregon, marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,004 per gallon. The Jackson County marketing area is defined as the area within the boundaries of Jackson County, Oregon. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this Order, shall remain in full force and effect as to the com¬ modities covered by this Order. 3. This Order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 27, 1953. E. R. Thissen, Acting Regional Director, Office of Price Stabilization, Region XIII. January 26, 1953. ~ IT - FILE following 81 Trans 34:125 (2-16-53) 81 Trans 34:127 S. O. 14 CPR 17, SEC. 11 (d) JANUARY 29, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Ceiling Price Regulation 17, Section 11 id), Special Order No. 14 ] Josephine County, Oregon, Marketing Area adjustment of tank wagon ceiling PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Josephine County, Oregon, Mar¬ keting Area. The Office of Price Stabilization was requested by distributors in the Jose¬ phine County, Oregon, Marketing Area to conduct a survey to determine whether increased costs have reduced the net margins in the area below a point sufficient to maintain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward adjustment is necessary to bring earnings to that level. There is a large number of heating oil sellers at the tank wagon level in this region and the need for relief is not uni¬ form, but varies from marketing area to marketing area. Thus it is concluded that the adjustment must be on a mar¬ keting area basis, rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area within the boundaries of Josephine County, Oregon. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore, consistent with the provisions of section 11 <d) of Ceil¬ ing Price Regulation 17. Special provisions. For the reasons set forth in the statement of considera¬ tions and pursuant to the provisions of section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceiling price of heating oil distributors in the Josephine County, Oregon, Marketing Area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,003 per gallon. The Josephine Coun¬ ty Marketing Area is defined as the area within the boundaries of Josephine County, Oregon. 2. All provisions of Ceiling Price Regu¬ lation 17, except as inconsistent with the provisions of this order, shall remain in full force and effect as to the commodi¬ ties covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 30, 1953. E. R. Thissen, Acting Regional Director, Region XIII, Office of Price Stabilization. January 29, 1953. .AJI. J2 : l *0 • • o V >1(. 1 i . - t • I- • v. . - • ' • : !>.' hi? -nj ;av: v. c •• >? r» ■ ■ . • .i - . n - : .A:- '{ . FILE following 81 Trans 34:127 (2-16-53) 81 Trans 34:129 S. 0.15 CPR 17, SEC. 11 (d) JANUARY 29. 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization [Celling Price Regulation 17, Section 11 (d), Special Order No. 15] Walla Walla, Washington, Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Walla Walla Marketing Area. The Office of Price Stabilization was requested by distributors in the Walla Walla Marketing Area to conduct a sur¬ vey to determine whether increased costs have reduced the net margins in the area below a point sufficient to maintain the level of earnings in the year ending May 31, 1950. The results of that sur¬ vey show that an upward adjustment is necessary to bring earnings to that level. There are hundreds of heating oil sellers at the tank wagon level in this Region and the need for relief is not uniform but varies from marketing area to marketing area. Thus it is con¬ cluded that the adjustment must be on a marketing area basis rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area of reseller com¬ petition, which is the same as the free delivery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is, therefore, consistent with the pro¬ visions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Consider¬ ations and pursuant to the provisions of section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, it is ordered: 1. That the ceiling price of heating oil distributors in the Walla Walla mar¬ keting area for tank wagon sales of heat¬ ing oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,005 per gallon. The Walla Walla marketing area is defined as the area in which dealers located in Walla Walla and College Place make deliveries with¬ out an additional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 30, 1953. E. R. This sen, Acting Regional Director, Region XIII, Office of Price Stabilization. January 29, 1953. ia'■ o FILE following 81 Trans 34:129 (2-16-53) 81 Trans 34:131 S. O. 16 CPR 17, SEC. 11 (d) JANUARY 29, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization |Ceiling Frice Regulation 17, Section 11 (d), Special Order No. 161 Yakima, Washington, Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This special order adjusts the ceiling prices for saleS of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Yakima marketing area. The Office of Price Stabilization was requested by distributors in the Yakima marketing area to conduct a survey to determine whether increased costs have reduced the net margins in the area be¬ low a point sufficient to maintain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward adjustment is nec¬ essary to bring earnings to that level. There are hundreds of heating oil sell¬ ers at the tank wagon level in this Region and the need for relief is not uniform but varies from marketing area to mar¬ keting area. Thus it is concluded that the adjustment must be on a marketing area basis rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area of reseller competition, which is the same as the free delivery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is, therefore, consistent with the provi¬ sions of section 11 <d> of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considerations and pursuant to the provisions of section 11 <d> of Ceiling Price Regulation 17 and Delegation of Authority No. 72, It is ordered: 1. That the ceilii g price of heating oil distributors in the Yakima market¬ ing area for tank wagon sales of heat¬ ing oils (Kerosene, No. 1 and 2 Oils, Fur¬ nace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0,004 per gallon. The Yakima marketing area is defined as that area in which dealers located in Yakima, Union Gap, and Se- lah make deliveries without an addi¬ tional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on January 30, 1953. E. R. Thissen, Acting Regional Director, Region XIII, Office of Price Stabilization. January 29, 1S53. . *■ '■■-I • * ■ j rittfiQj * ! ■'•■■■ » . ;' ■ .... - . ' FILE following 81 Trans 34:131 (2-16-53) 81 Trans 34:133 s. O. 17 CPR 17, SEC. 11 <d> FEBRUARY 6, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON ECONOMIC STABILIZATION AGENCY Office of Price Stabilization |Celling Price Regulation 17, Section 11 (d), Special Order No. 17) Spokane, Washington, Marketing Area ADJUSTMENT OF TANK WAGON CEILING PRICES OF FUEL OIL DISTRIBUTORS Statement of considerations. This special order adjusts the ceiling prices for sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) by tank wagon distributors in the Spokane, Washington, Marketing Area. The Office of Price Stabilization was requested by distributors in the Spokane, Washington, marketing area to conduct a survey to determine whether increased costs have reduced the net margins in the area below a point sufficient to main¬ tain the level of earnings in the year ending May 31, 1950. The results of that survey show that an upward ad¬ justment is necessary to bring earnings to that level. There are hundreds of heating oil sell¬ ers at the tank wagon level in this Region and the need for relief is not uniform but varies from marketing area to mar¬ keting area. Thus it is concluded that the adjustment must be on a marketing area basis rather than on a region-wide basis. For the purpose of this special order the market area has been defined as the area of reseller competition, which is the same as the free delivery zones. The adjustment granted by this order does no more than bring earnings to the level of the year ending May 31, 1950. It is therefore, consistent with the provi¬ sions of section 11 (d) of Ceiling Price Regulation 17. Special provisions. For the reasons set forth in the Statement of Considera¬ tions and pursuant to the provisions of Section 11 (d) of Ceiling Price Regula¬ tion 17 and Delegation of Authority No. 72, it is ordered: 1. That the ceiling price of heating oil distributors in the Spokane marketing area for tank wagon sales of heating oils (Kerosene, No. 1 and 2 Oils, Furnace Oil, Range Oil and Stove Oil) to consumers shall be increased by $0.0003 per gallon. The Spokane marketing area is defined as that area surrounded by the cities and towns of Spokane, Deepcreek, Denison, Chattaroy, Four Lakes and Mica, to¬ gether with the immediately adjacent areas in which dealers in the named cities and towns make deliveries without additional charge. 2. All provisions of Ceiling Price Reg¬ ulation 17, except as inconsistent with the provisions of this order, shall remain in full force and effect as to the com¬ modities covered by this order. 3. This order may be amended, modi¬ fied, or revoked at any time. Effective date. This special order shall become effective on February 7, 1953. Muriel Mawer, Acting Regional Director, Re¬ gion XIII, Office of Price Stabilization. February 6, 1953. c . •' * )i^0 ■ , FILE following 81 Trans 34:C13 (10-17-52) 81 Trans 34:215.1 INTERPRETATIONS CPR 17, Sec. 15 EVASION Contract deferring payment of overcharge until after termination of price controls An agreement between a producer and a buyer of natural gas provides that upon the expiration or repeal of price stabilization the seller's prices shall be increased, to the extent that such can be done lawfully, to make up any price decrease which he has been forced to take under price regulation. Any agreement to buy or sell at more than the ceiling price is prohibited by Section 15 of CPR 17. The agreement provides that the buyer shall ultimately pay the contract rate for all deliveries. If at any time the ceiling price is lower than the contract rate, the buyer agrees, subject to this arrangement being lawful, to pay the ceiling price at the time of delivery and the balance of the price, computed at the contract rate, in installments after price control has ended. This agreement falls squarely within the prohibitions of Section 15 even though payment of that part of the price which would be over ceiling is deferred until after the termination of price controls. Accordingly, it is to be concluded that the provisions calling for increased pay¬ ments by the buyer after price control has ended are unlawful. (4-1-52 No. 36) :-\ VO ■■■vc *«# •' ’ airfl' ■ ’ FILE following 81 Trans 34:215.1 (11-4-52) 81 Trans 34:225.1 INTERPRETATIONS CPR 17, Sec. 25 "UNREGULATED” COMMON CARRIER 1. Status as common carrier unaffected 2. Increases "permitted" when rates are exempt The questions posed are: "Does the fact that a common carrier is exempt from Interstate Commerce Commission regulations with respect to its hauling of bulk petroleum, change its status as a common carrier with respect to such hauling? "If the answer to question one is no, does the fact that the common carrier is exempt from Interstate Commerce Commission regulations wixh respect to hauling bulk petroleum mean that its rate increase of March 5, 1951, was "permitted by a federal or state regulatory body" so that the ship¬ per may pass on the increase to its distributors pursuant to Sec. 25 (a)(1) of CPR 17?" The exemption from Interstate Commerce Commission rate regulation does not change the status of a common carrier. This carrier's operations as described were those of an "unregulated" common carrier. It was questioned whether the use of the word "permitted" in Sec. 25 of CPR 17 contemplates some affirmative action rate-wise on the part of OPS or a federal or dtate regulatory body, and does not refer to the failure or legal incapacity of these bodies to exercise authority. This is too strict a reading of the section. The intent of Sec. 25 was to recognize valid rate increases. The statute itself in effect validates rate increases by "unregulated" common carriers inasmuch as it denies OPS the power to control them. Sec. 14(f) of the GCPR does the same thing, and this, of course, is undeniably an action by OPS. (11-29-51 No. 12) as: a£ Vt "TD « ' 9:tW "h-. : 1 .. . . __ ... — v FILE following 81 Trans 34:16 (7-24-51) 81 Trans 34:301 Ceiling Price Regulation 17 Supplementary Regulation 1 JULY 26, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON Sales of Gasoline in Certain Areas of California TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 17, Supplementary Regulation 1] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts SR 1-SALES OF GASOLINE IN CERTAIN AREAS • OF CALIFORNIA Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended, Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Supplementary Regulation 1 to Ceiling Price Regulation 17 (16 F. R. 2626) is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation to Ceiling Price Regulation 17 establishes dollars-and-cents prices for tank wagon and “rack” sales of automotive gasoline in the Los Angeles Basin area of the State of California. The prices normally charged by wholesalers of motor gasoline in this area for tank wagon sales have been at substantially uniform prices for several years antedating the issuance of Ceiling Price Regulation 17. Similarly, there is a substantial volume of auto¬ motive gasoline sold at the refineries or refinery facilities at a customary dif¬ ferential below the prevailing tank wagon price for the area involved. For convenience in terminology, this type of discount transaction is referred to as the sale of “rack gasoline” or “rack price gasoline.” This gasoline is sold either f. o. b. the refinery with transportation provided by the ultimate consumer or buyer, or is sold on a delivered-at-desti- nation basis which consists of the “rack price” plus customary transportation charges. Examination of prices on “rack trans¬ actions” back to 1948 shows that the cus¬ tomary level has been from 2.00 to 2.70 per gallon below the prevailing tank wagon price in each area involved, and that the weighted average discount has been 2.5c* per gallon off tank wagon. However, the retail price war which broke out in Los Angeles basin early in 1950 caused "rack prices” also to weaken, and the Office of Price Stabili¬ zation regulations froze these “rack prices” at 30 to 3 below tank wagon ceiling prices. Thus the discounts on “rack prices,” as frozen into the area price structure, are from l/2<* to 1.00 per gallon below the normal differentials. It is the purpose of this supplementary regulation to restore the customary dif¬ ferential between the tank wagon price and the “rack price” in order to relieve the sellers who how have their ceilings frozen at abnormally low levels. The ceiling price relief to be afforded by this supplementary regulation is essential to the maintenance of gasoline supplies through customary channels of distribution. With the depletion of gas¬ oline inventories in late 1950 and early 1951 and the resultant tight supply situa¬ tion on gasoline currently existing in the Pacific Coast, many re-sellers of gasoline are having extreme difficulty in securing their requirements of the product. The customary pricing practice on the Pacific Coast is to relate prices for de¬ liveries other than by tank wagon in terms of discounts or premiums over or under the tank wagon price. It is, there¬ fore, essential to establish, coincident with the restoration of the normal differ¬ ential for “rack” transactions, the pre¬ vailing tank wagon price in the area in¬ volved as the ceiling price. Evidence is on file to show that the posted tank wagon price of sellers in this area is the prevailing price and, because of the ex¬ istence of uniform prices, the establish¬ ment of dollars and cents prices is facili¬ tated. The tank wagon prices which are spelled out by this supplementary regu¬ lation were in effect in the latter part of 1950, and are regarded by the Pacific Coast Industry Advisory Committee as fair and equitable. Moreover, the estab¬ lishment of dollars and cents ceiling prices for tank wagon deliveries is in ac¬ cordance with the announced policy of this agency to establish specific ceiling prices, which situation is desirable from the standpoint of the consuming public, sellers, and the government. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization, the prices estab¬ lished by this supplementary regulation are at the minimum levels which will permit the continued supply of gasoline, are generally fair and equitable, and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. Applicability of supplementary regula¬ tion. 2. Definitions. 3. Ceiling prices for tank wagon deliveries in the Los Angeles basin. 4. Rack gasoline. Authority: Sections 1 to 4 issued under sec. 704, Pub. Law 774, 81st Cong. Interpret or apply Title IV, Pub. Law 774, 81st Cong., Ex¬ ecutive Order 10161. September 9, 1950, F. R. 6105; 3 CFR, 1950 Supp. Section 1. Applicability of supple¬ mentary regulation. This supplemen¬ tary regulation sets specific prices for tank wagon sales of regular, automo¬ tive and marine gasoline in the Los Angeles basin area, and sets a specific 2.50 differential in sales of “rack gaso¬ line.” Sec. 2. Definitions. When used in the supplementary regulation, the term “Los Angeles basin” means that area enclosed by a line beginning at the southerly lim¬ its of Laguna Beach, extending north to Irvine, thence northerly to base of Sierra Madre mountains at Altadena, thence along Foothill Boulevard to intersection of San Fernando Road and Foothill Boulevard, including the site of the New- hall Refinery, thence southwesterly to north boundary of Malibu Beach and Pacific Ocean, thence southeasterly along shoreline of Pacific Ocean to point of commencement. Sec. 3. Ceiling prices for tank wagon deliveries in the Los Angeles basin, (a) Ceiling prices for tank wagon deliver¬ ies in the Los Angeles basin area for reg¬ ular grade gasoline are hereby estab¬ lished as follows: Ceiling Prices Per Gallon Quantity of gasoline per delivery: Cents 40 to 199 gallons_21. 0 200 to 399 gallons_20. 5 400 and over gallons_20. 0 (b) Premium grade gasoline in the aforementioned area shall be the price for regular grade gasoline as listed in paragraph (a) of this section, plus each seller’s customary differential between regular and premium grade gasolines delivered by tank wagon. (c) Third grade gasoline in the afore¬ said area shall be the price for regular grade gasoline as listed in paragraph (a) of this section, minus each seller’s customary differential between regular and third grade gasolines delivered by tank wagon. Sec. 4. Rack gasoline. The ceiling price for regular grade gasoline f.o.b. re¬ fineries or refinery facilities to that class of purchaser buying “rack price gaso¬ line” in the Los Angeles basin shall be 2.50 per gallon below the specified tank wagon ceiling price for quantities as es¬ tablished in section 3 of this regulation. For “delivery-at-destination” sales of rack price gasoline there may be added to the f.o.b. refineries ceiling prices es¬ tablished by this section the seller’s cus¬ tomary transportation charge. For premium grades of gasoline, the seller’s customary wholesale differential between regular and premium grades may be ad¬ ded. For third grade gasoline the seller’s customary wholesale differential between regular and third grade gasoline shall be deducted.' Effective date. This supplementary regulation shall become effective on the 31st day of July, 1951. Michael V. DiSalle, Director of Price Stabilization. July 26, 1951. . • " ... - A 1 • - * ■ ■ . - . ■ > » , i. 9. J » . . ~ \ . * - • v. . ■ ■ 1 ■ ( > .... . r • V „ • *.(■■■ ■' ' ■ ( \ / , i' ' - ■ ■ : ; *: • ■ FILE following 81 Trans 34:301 (1-2-52) 81 Trans 34:303 Resellers of Los Angeles "Rack Price Gasoline” Outside Los Angeles Basin Ceiling Price Regulation 17 Supplementary Regulation 1 Amendment 1 DEC. 29, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A-—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Arndt. 1 to Supplementary Regulation 1] CPR 17—Gasoline, Napthas, Fuel Oils and Liquefied Petroleum Gases, Nat¬ ural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 1—Sales of Gasoline in Certain Areas of California RESELLERS OF LOS ANGELES “RACK PRICE GASOLINE” OUTSIDE LOS ANGELES BASIN Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended. Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Amendment 1 to Supplemen¬ tary Regulation 1 to Ceiling Price Regu¬ lation 17 is hereby issued. STATEMENT OF CONSIDERATIONS The purpose of Supplementary Regu¬ lation 1 to Ceiling Price Regulation 17 was to rectify an unsatisfactory ceiling price situation in the Los Angeles Basin which had resulted from a prolonged price war that was terminating during the base period. The supplementary regulation confined its coverage to a spe¬ cific geographical area. In doing so it failed to take into account a small per¬ centage of "rack price gasoline”, which is purchased at the rack in the Los Ange¬ les Basin area, and then transported out¬ side that area for sale either directly to retailers at service stations, or to bulk plants for resale to retail outlets. To prevent ceiling prices from creating an economic situation which would dis¬ rupt normal supplies of gasoline, Sup¬ plementary Regulation 1 established the differential between the tank wagon price on deliveries in the Los Angeles Basin area and the rack price at 2.5<f per gallon. In many cases this resulted in a reduction of differentials which had the result of raising the rack price of gaso¬ line. However, when this "rack price gasoline”, in the course of distribution, reaches areas outside the Los Angeles Basin, Supplementary Regulation i to Ceiling Price Regulation 17 ceases to be applicable, and the ceilings are set by Ceiling Price Regulation 17, which per¬ mits no pass through of this sort. This results in a squeeze on independent marketers reselling Los Angeles rack gasoline outside the Los Angeles Basin. This squeeze is measured by the extent that Supplementary Regulation 1 per¬ mitted an increase in “rack price gaso¬ line” in the Los Angeles Basin. Under this amendment resellers who purchase "rack price gasoline” that orig¬ inates under the rack in the Los An¬ geles Basin may adjust their ceiling prices to pass on any increase in costs resulting from the issuance of Supple¬ mentary Regulation 1 to Ceiling Price Regulation 17, regardless of whether they sell within or without the Los An¬ geles Basin area. Prior to the issuance of this regulation the Director of Price Stabilization has consulted with Pacific Coast Wholesale Petroleum Industrial Advisory Committees, and has given con¬ sideration to their recommendations. This amendment also adds a section to Supplementary Regulation 1 which in¬ corporates therein all the provisions of Ceiling Price Regulation 17 that are not inconsistent with the supplementary regulation, such as the record-keeping, compliance, transportation and tax pro¬ visions. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION ' In the judgment of the Director of Price Stabilization this amendment to Supplementary Regulation 1 to Ceiling Price Regulation 17 is generally fair and equitable and is necessary to effectuate the purposes of Title IV of the Defense Production Act of 1959, as amended. AMENDATORY PROVISIONS Supplementary Regulation 1 to Ceil¬ ing Price Regulation 17 is amended in the following respects: Section 1 is amended to read as fol¬ lows: Section 1. Applicability of supple¬ mentary regulation. This supplemen¬ tary regulation sets specific prices for tank wagon sales of regular automotive and marine gasoline in the Los Angeles Basin area. It also sets a specific 2.5<f differential on sales of “rack price gaso¬ line” in the Los Angeles Basin area and permits resellers of "rack price gaso¬ line” which originates under the rack in the Los Angeles Basin area to pass on to purchasers located within or without the Los Angeles Basin area, any increase in cost occasioned by the specific prices and differentials herein established. 2. Section 4 is amended to read as fol¬ lows: Sec. 4. Rack gasoline, (a) The ceil¬ ing price for each grade of gasoline f. o. b. refineries or refinery facilities to that class of purchaser buying "rack price gasoline” in the Los Angeles Basin area shall be 2.5 4 per gallon below the specified tank wagon ceiling price for quantities as established in section 3 of this regulation. (b) The ceiling price of a refiner for "delivered-at-destination” sales of “rack price gasoline” originating in the Los Angeles Basin area shall be the f. o. b. ceiling price for such gasoline as estab¬ lished by paragraph (a) of this section plus the refiner’s customary transporta¬ tion charge. (c) The ceiling price of resellers of “rack price gasoline” which originated under the rack in the Los Angeles Basin area shall be increased by the amount of increased cost of the product to the reseller resulting from increases in ceil¬ ing prices permitted their suppliers by this section, irrespective of the location of the sale within or without the Los An¬ geles Basin area. Nothing in this regulation shall be construed as referring to cargo sales of gasoline. 3. A new section 5 is added to read as follows: Sec. 5. Applicable provisions of Ceil¬ ing Price Regulation 17. Sellers subject to this supplementary regulation shall be subject to all provisions of Ceiling Price Regulation 17 not inconsistent with the provisions of this supplementary regula¬ tion. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment 1 to Supplementary Regulation 1 to Ceiling Price Regulation 17 shall become effec¬ tive January 3, 1952. Michael V. DiSalle, Director of Price Stabilization. December 29, 1951. FILE following 81 Trans 34:301 (10-16-51) 81 Trans 34:401 Price Adjustments for Cyclohexane OFFICE OF PRICE STABILIZATION Ceiling Price Regulation 17 Supplementary Regulation 2 OCTOBER 16, 1951 WASHINGTON only by use of new and additional plant facilities and fractionation equipment, not now in existence, which can recover a substantially larger percentage of cyclo¬ hexane than the normal fractionation process. Such additional facilities and equipment will involve substantial new capital expenditures and increased pro¬ duction costs, in turn requiring higher prices than the present ceiling prices of cyclohexane. It is not considered nec¬ essary to exempt cyclohexane from price ceilings, because it will be administra¬ tively feasible to make appropriate indi¬ vidual price adjustments for the few pro¬ ducers who can expand their production of cyclohexane. Manufacturers of nylon have ex¬ pressed their desire for incremental supplies of cyclohexane for use in the manufacture of nylon essential for de¬ fense purposes. Even at the higher prices which may be granted under this supplementary regulation, cyclohexane will provide them with a lower cost raw material than if they purchased addi¬ tional benezene at the level of prices currently prevailing on incremental ben¬ zene from petroleum and on imported benzene. Thus, price adjustments which result in additional supplies of cy¬ clohexane will contribute to the stabili¬ zation program by relieving the critical shortage of benzene and by providing nylon manufacturers with an alterna¬ tive lower cost raw material. This supplementary regulation pro¬ vides that where it is in the interest of the National Defense effort, upon the proper showing of estimated capital ex¬ penditures and anticipated production costs, a petroleum refiner may be granted an adjusted ceiling price for incremental supplies in order to enable him to in¬ crease his production of cyclohexane. Prior to the issuance of this supple¬ mentary regulation the Director of Price Stabilization has consulted with industry representatives who might be affected by this regulation. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION Sec. 2. Adjustment of ceiling prices of cyclohexane, (a) Whenever in the opin¬ ion of the Director of Price Stabiliza¬ tion it is essential to the defense effort to bring out incremental supplies of cyclohexane, he may adjust a producer’s ceiling price for cyclohexane to reflect actual or anticipated increases in operat¬ ing costs and capital expenditures for new or improved producing facilities made after January 25, 1951. Consider¬ ation shall also be given to < the price necessary to secure adequate production and to the effect of increased prices on the prices of finished products. At the discretion of the Director of Price Stabilization, he may adjust the ceiling price only on sales of the incre¬ mental production of cyclohexane, or he may grant a proportionately smaller ceiling price adjustment applicable to the producer’s entire output of cyclo¬ hexane. (b) A producer of cyclohexane desir¬ ing an adjustment of his ceiling price for cyclohexane shall file a request for such adjustment with the Petroleum Branch, Office of Price Stabilization. This request shall set forth (l)a descrip¬ tion of his present and proposed opera¬ tion; (2) an estimate of capital expendi¬ tures for the equipment necessary to produce the incremental supply of cyclo¬ hexane, broken down into major types of equipment; (3) present unit cost of pro¬ duction, showing in detail material and labor costs, operating overhead, depre¬ ciation, and sales and administrative ex¬ penses; (4) an estimate of the unit cost of his incremental products showing the same detail as subparagraph (3) of this paragraph and the rates and amounts of amortization; (5) his present and pro¬ posed ceiling prices for cyclohexane; and (6) any other such information deemed pertinent' by the applicant. (c) The Director may at any time re¬ vise ceiling prices established by order under the provisions of this supple¬ mentary regulation when such ceiling prices appear to be inconsistent with the basis upon which the adjustment was made. TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Supplementary Regulation 2] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 2-PRICE ADJUSTMENTS FOR CYCLOHEXANE Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 P. R. 738), this Supplementary Reg¬ ulation 2 to Ceiling Price Regulation 17 (16 P. R. 3033), is hereby issued. STATEMENT OF CONSIDERATIONS Cyclohexane is a petroleum hydrocar¬ bon which can be obtained from natural gasoline and various refinery gasoline streams by a careful treating operation and elaborate fractionating equipment. It is normally manufactured by only a few refiners, who obtain low yields and consequently produce relatively small quantities. Cyclohexane prices in the past and during the base period have reflected both cost of production and the prices of competitive hydrocarbons. The price of cyclohexane has not been suffi¬ ciently high to permit building and op¬ erating the additional fractionating equipment needed to secure higher recov¬ eries out of the gasoline streams. Cyclohexane and benzene are chem¬ ically similar in composition and are al¬ ternative raw materials for the manufac¬ ture of nylon, although cyclohexane is preferable since the first step in manu¬ facturing nylon from benzene is to con¬ vert it to cyclohexane. Heretofore ben¬ zene, rather than cyclohexane, has been the principal raw material (because of its availability) at a price at which cyclo¬ hexane could not compete for nylon manufacture. Under the impact of thj mobilization program the demands for benzene and nylon have been increasing very rapidly. A greatly expanded production of ben¬ zene is needed not only for the manufac¬ ture of nylon, but also because benzene is an important raw material in many chemical industries, including the manu¬ facture of synthetic rubber. The amount of benzene normally produced from petroleum is insignificant as com¬ pared with the quantities produced by the coke industry as a by-product. However, production from petroleum can be substantially expanded. Conse¬ quently, in order to insure an expansion in production, and at the request of the Petroleum Administrator for Defense, benzene from petroleum was exempted from ceiling prices in Ceiling Price Reg¬ ulation 17. Incremental supplies of cyclohexane to serve as a substitute for scarce benzene can be produced by petroleum refiners In the judgment of the Director of Price Stabilization the adjustment pro¬ vision established in this supplementary regulation is necessary to effectuate the purposes of the Defense Production Act of 1950, as amended. regulatory provisions Sec. 1. Applicability of this supplementary regu¬ lation. 2. Adjustment of celling prices of cyclo¬ hexane. 3. Applicability of Celling Price Regulation 17. 4. Reports. Authority: Sections 1 to 4 issued under -sec. 704, 64 Stat. 816, as amended: 60 IT. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 60 U. 8. C. App. Sup. 2101-2110, E. O. 10161, Sept. 9, 1960, 16 P. R. 6105, 3 CPR, 1960 Supp. Section 1. Applicability of this sup¬ plementary regulation. This supple¬ mentary regulation is applicable to sales of cyclohexane produced from petroleum. Sec. 3. Applicability of Ceiling Price Regulation 17. Sellers subject to this supplementary regulation shall be sub¬ ject to all the provisions of Ceiling Price Regulation 17 not inconsistent herewith. Sec. 4. Reports. Producers of cyclo¬ hexane whose ceiling prices have been adjusted under the provisions of this supplementary regulation shall be re¬ quired upon the request of the Director to file a report of actual detailed cost data on incremental supplies of cyclo¬ hexane. Effective date. This supplementary regulation is effective October 22, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget In ac¬ cordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director, Office of Price Stabilization. October 16, 1951. 1 Jj| « / ( ■ /. . (_ ■ - • ■' ■ - / _v . ’. ) ■ f * . .• gff| KHHmL f . r v :' ' ’ ‘ ’ t \ • ■ l ■ FILE following 81 Trans 34:401 (10-25-51) 81 Trans 34:501 Ceiling Price Regulation 17 Supplementary Regulation 3 OCT. 25, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON Increased Ceiling Prices— Sellers of Kerosene, Diesel Fuel, Etc. TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 17, Supplementary Regulation 3| CPR 17 — Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinchead Gas. and Refinery Gas SR 3—INCREASED CEILING PRICES ALLOWED . TO SELLERS OF KEROSENE, DISTILLATE TYPE BURNING FUELS AND DIESEL FUEL IN CERTAIN MID-WESTERN STATES Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 F. R. 738), this Sup¬ plementary Regulation 3 to Ceiling Price Regulation 17 (16 F. R. 3033) is hereby issued. STATEMENT OF CONSIDERATIONS Supplementary Regulation 3 to Ceiling Price Regulation 17 is designed to rectify a tank wagon price problem which was created in the mid-western states by the price freeze established by the General Ceiling Price Regulation on January 26, 1951. The petroleum industry had, to a great extent, observed a “hold the line” price request which was issued by the Director of Price Stabilization on December 18, 1950. At that time, such voluntary ac¬ tion was considered temporary, pend¬ ing preparation and issuance of regula¬ tions. Acceptance by the petroleum industry of the voluntary price freeze brought a sudden halt in normal pricing pro¬ cedures, and certain distortions resulted in tank wagon sales of kerosene, No. 2 Heating Oil, and other distillate fuels in the mid-western section of the country. These distortions stemmed from the fact that f. o. b. refinery prices and tank car delivered prices at that time were rising, and not all of the tank wagon sellers had made the upward market adjustments necessary to maintain customary operat¬ ing margins between tank car delivered prices and tank wagon distribution prices. Issuance of the General Ceiling Price Regulation froze into ceilings the diverse tank wagon price levels resulting from the observance of the voluntary “freeze” as of December 18, 1950, thereby retain¬ ing these distortions. Ceiling Price Reg¬ ulation 17 continued the price levels of the base period and continued also those distortions already in existence. The customary practice of the petro¬ leum industry under ordinary conditions is to reflect at the tank-car level price changes at the refinery level and tank wagon prices in turn reflect changes at the tank car level. In the early part of December 1950 an increase in prices at the tank car level was in progress, the advance being made in the customary increments of VB of a cent at a time. This advance was in an amount that would normally have resulted in an in¬ crease in tank wagon prices of :Ho to Va of a cent. But the tank car advance was not completed until December 18, 1950, the date of the voluntary price freeze, and the voluntary price freeze had not permitted tank wagon dealers time to complete arrangements to advance the tank wagon price. In fact, there is a normal lag between tank car and tank wagon price changes due, in large part, to the practice of moving tank wagon prices in steps of V2 of a cent. While some changes were accomplished, others in contemplation were postponed due to observance of the voluntary price freeze of December 18th, with the result that the “highest price charged during the base period” varied considerably among the numerous marketers. Tank wagon ceiling prices of some sellers were frozen at considerably lower levels than those of their competitors. . A substantial segment of the industry, including a large number of relatively small business enterprises selling at the tank wagon level, now find themselves in a situation where they are subjected to increased costs for kerosene and dis¬ tillate fuel oils and are not able to reflect such increases in their selling prices be¬ cause either < 1) their tank wagon ceiling prices are frozen at abnormally low levels or (2) they cannot sell at their higher established ceilings because their com¬ petitors’ ceilings are frozen at abnor¬ mally low levels, thus compelling them to meet competition in the market or lose their customers. In general the extent of the tank car and refinery advances in December 1950 ranged from V4 of a cent to V2 of a cent per gallon, the amount being determined oy the method of pricing used, the petro¬ leum product involved, and the geo¬ graphical location. One of the major marketers has, for several years, followed a pricing policy which apparently differs from the “Group 3 Basis” of pricing. In brief, it bases its tank wagon price structure upon refinery prices, plus a customary margin which varies dependent upon the competitive situation and the demand for its products in local marketing areas. This major marketer was in the process of adjusting his tank wagon prices in 11 states after completion of an exhaustive study of the price situation. These ad¬ justments would have increased prices by 0.5 of a cent per gallon in the states of Wisconsin, Minnesota, North Dakota, South Dakota, Iowa and Kansas, and by 0.3 of a cent in Indiana, Missouri, Ne¬ braska, Michigan and Illinois with the exception of Metropolitan Chicago where adjustment had already been made. On the so-called “Group 3 Basis” in the Oklahoma area, fuel oil prices at refin¬ eries (tank car) rose V4 of a cent, and kerosene prices % of a cent per gallon. These amounts are in turn the minimum that the jobber's margin has been de¬ creased. Because of the shrinkage of up to Vl0 of a cent per gallon in jobbers’ margins, with an average for the 12 states of ap¬ proximately % of a cent per gallon or about 17 percent of the customary gross margin, numerous petitions for ceiling price adjustment have been received from independent marketers as well as from major oil companies. The adjustments in tank wagon ceil¬ ing prices which are made by this sup¬ plementary regulation will result in prices in the mid-western area described which will be more in line with prices frozen by Ceiling Price Regulation 17 in other sections of the country. After careful study of price statistics, and consulta:ion with numerous trade representatives in the affected area, the conclusion has been reached that this squeeze of margins should be relieved. Because the number of sellers involved amounts to several thousand, it is deemed advisable to make the correction by means of a supplementary regulation to Ceiling Price Regulation 17, instead of by individual adjustments. The Director of Price Stabilization has consulted extensively with trade asso¬ ciation representatives and members of the industry affected by this supplemen¬ tary regulation and consideration has been given to the information and sug¬ gestions received from them. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization, the prices established by this supplementary regulation are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Ac; of 1950, as amended. REGULATORY PROVISIONS Sec. 1. Applicability of this supplementary regu¬ lation. 2. Adjustment of celling prices. 3. Records. Authority: Sections 1 to 3 issued under sec. 704, 64 Stat. 816, as amended; 60 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110; E. O. 10161, Sept. 9, 1950, 15 P. R. 6105; 3 CFR, 1950 Supp. Section 1. Applicability of this sup¬ plementary regulation. This supple- 81 Trans 34:502 mentary regulation grants authority to sellers of kerosene, distillate type burn¬ ing oils and Diesel fuel to adjust their ceiling prices 3/10 of a cent per gallon to V2 of a cent per gallon, under stated conditions, when making sales of these products at the tank wagon level in cer¬ tain mid-western states. Sec. 2. Adjustment of ceiling prices. (a) The tank wagon ceiling price of a seller of kerosene, distillate type burning oil and Diesel fuels may be adjusted to a price no higher than the selling price for the same grade and quantity on Decem¬ ber 13, 1950, or the nearest date prior thereto that a sale was made, plus the amount specified for each geographical area, listed in this paragraph: (1) One-half cent per gallon in the states of Wisconsin, Minnesota, North Dakota, South Dakota, Iowa and Kansas. (2) Three-tenths cent per gallon in the states of Arkansas, Indiana, Missouri, Nebraska, Michigan and Illinois (except in Metropolitan Chicago area). For the purposes of this supplementary regulation Metropolitan Chicago area means the City of Chicago, Illinois, and the area contiguous thereto, within which, with respect to petroleum prod¬ ucts, railroad “switching rates" (as dis¬ tinguished from "through rates”) apply on movements from any refinery or bulk plant in Lake, Cook, Du Page, and Will Counties in the state of Illinois, and Lake, Porter and La Porte Counties in the state of Indiana. (b> Sellers of products covered by this supplementary regulation whose ceiling price has been established by other ceil¬ ing price regulations heretofore issued may continue to use such established ceiling prices. Sec. 3. Records. Sellers covered by this regulation must maintain records in accordance with the record-keeping pro¬ visions of Ceiling Price Regulation 17, and in addition must maintain records indicating the selling price of December 13, 1950, or if no sale was made on that date the selling price on the nearest date prior thereto that a sale was made. Such records must be kept available for in¬ spection by the Director of Price Stabil¬ ization or his designated agent for a pe¬ riod of two years. Effective date. This supplementary regulation shall become effective October 30, 1951. Note: The record-keeping requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle. Director, Office of Price Stabilization. October 25. 1951. FILE following 81 Trans 34:502 (11-20-51) 81 Trans 34:601 Certain Petroleum Products in the Greater Boston Area Ceiling Price Regulation 17 Supplementary Regulation 4 NOV. 20, 1951 OFFICE OF PRICE STABILIZATION TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 17, Supplementary Regulation 4] , CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 4—SALES OF CERTAIN PETROLEUM PROD¬ UCTS IN THE GREATER BOSTON AREA Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 P. R. 738), this Supplementary Regulation No. 4 to Ceiling Price Regula¬ tion 17 (16 P. R. 3033), is hereby issued. STATEMENT OF CONSIDERATIONS In the Statement of Considerations of Ceiling Price Regulation 17 there is a stipulation that “it is the intention of the Director of Price Stabilization to estab¬ lish specific area price ceilings for as many of these (petroleum) products as is feasible.” The present supplementary regulation is designed to carry out the Director’s intention in one locality—the Greater Boston (Massachusetts) area— by spelling out specific ceiling prices in cents per gallon for Range Oil, No. 1 Fuel Oil, Kerosene and Nos. 2, 3 and 4 Distillate Fuel Oil at (1) refineries and tanker terminals, (2) terminals other than tanker or barge terminals, (3) jobbers’ barge terminals, (4) jobbers’ bulk plants, and (5) delivered in tank wagons. As a prerequisite to a spell-out of prices in that area the Boston Regional Office has completed a survey which in¬ cluded consulting with all segments of industry, and has proposed appropriate price action. This supplementary regu¬ lation, embodying the proposals, does not contain any basic price changes. A fractional upward adjustment of tank wagon delivery pric?s and of prices at certain primary inland terminals and jobbers’ bulk plants is incorporated in the spelled out prices to include increases in costs of transportation as permitted by the Massachusetts Department of Public Utilities subsequent to January 25, 1951. Transportation cost increases have averaged about .08 of a cent per gallon, but in no case has this cost in¬ creased by more than A of a cent per gallon. To conform with the customary pricing practice in the Greater Boston Area of adjusting prices by tenths of a cent, and to provide uniformity through¬ out the area, one-tenth of a cent has been added to the base period tank wagon ceiling prices. In the case of in¬ land terminals and jobbers' barge termi- WASHINGTON nals or bulk plants one-twentieth of a cent has been added to cover the addi¬ tional transportation costs to those points. FINDINGS OF THE DIRECTOR OF PRICE CTi.BILIZATION In the judgment of the Director of Price Stabilization the specific ceiling prices established by this supplementary regulation are generally fair and equi¬ table and are necessary to effectuate the purposes of Title IV of the Defense Pro¬ duction Act of 1950, as amended. AMENDATORY PROVISIONS Sec. 1. Applicability of supplementary regulation. 2. Definitions. 3. Specific prices In the Greater Boston Area. 4. Applicability of CPR 17 provisions. Authority : Sections 1 to 4 Issued under sec. 704, 64 Stat. 816, as ahaended, Pub. Law 96, 82d Cong; 50 U. S. C. App. Sup. 2164. Interpret or apply Title IV, 64 Stat. 803, Pub. Law 96, 82d Cong.; 50 U. S. C. App. Sup. 2101-2110. E. O. 10161, Sept. 9, 1950, 15 F. R. 6105, 3 CFR, 1950 Supp. Section 1. Applicability of supple¬ mentary regulation. This supplemen¬ tary regulation sets specific ceiling prices (in the Greater Boston Area of Massa¬ chusetts) in cents per gallon for Range Oil, No. 1 Fuel Oil, Kerosene, and Nos. 2, 3, and 4 Distillate Fuel Oil at refineries, the primary terminals, and jobbers’ barge terminals, the jobbers’ bulk plants and delivered in tank wagons. These ceiling prices shall apply notwithstand¬ ing the pricing provisions of Ceiling Price Regulation 17. Sec. 2. Definitions, (a) A barge ter¬ minal reseller means a barge buyer who purchases petroleum products for trans¬ portation to a water-way terminal for storage and resale. (b) A tank car buyer is one to whom a specific seller or group of sellers has customarily and regularly sold on the basis of the tank car price. (c) A tank wagon rack buyer is one who purchases at the rack in tank wagon lots and who has customarily and gen¬ erally bought at a differential under the tank tfragon price. (d) The Greater Boston Area of Massachusetts means that area con¬ tained in the corporate limits of the fol¬ lowing Massachusetts cities and towns: Arlington, Bedford, Belmont, Boston (including Allston, Brighton, Charles¬ town, Dorchester, East Boston, Forest Hills, Hyde Park, Jamaica Plain, Matta- pan, Roslindale, Roxbury, South Boston, West Roxbury). Braintree, Brookline, Burlington, Cambridge, Canton, Chelsea, Cohasset, Dedham, Dover, Hingham, Hull, Lexington, Lincoln, Malden, Med¬ ford, Melrose, Milton, Needham, Newton, Quincy, Reading, Revere, Somerville, Stoneham, Wakefield, Waltham, Water- town, Wellesley, Weston, Westwood, Weymouth, Winchester, Winthrop, and Woburn. Sec. 3. Specific prices in the Greater Boston Area. The ceiling prices for sales and deliveries in the Greater Boston Area of Massachusetts for the petroleum products for the type of sale and to the class of purchasers as set forth below shall be as follows: Type of sale Range oil, No. 1 fuel oil, kero¬ sene Nos. 2, 3, and 4 dis¬ tillate fuel oil Sales at reftneries-tanker ternii- Cents per Cents per nals: gallon gallon " To barge terminal resellers.. 10.05 9.05 To baree buyers.. 10.20 9.20 To tank car buyers_ 10.30 9.30 To tank wagon rack buyers. 10.90 9.90 Where a seller at the refinery or tanker terminal level customarily sold to a barge terminal reseller or barge buyer at the tank car price during the base period, such seller may continue such practice. Type of sale Range oil, No. 1 fuel oil, kero¬ sene Nos. 2,3, and 4 distil¬ late fuel oil Sales at primary terminals other than Cent* Cents tanker terminals: per per Pipeline and barge: To tank car gallon gallon buyers... 10.40 9.40 Other inland: To tank car buyers- 10. 45 9. 45 To tank wagon rack buyers- Sales at jobbers' barge terminals: 10.05 9.95 To tank wagon rack buyers .. Sales at jobbers’ bulk plants: 10.95 9.95 To tank wagon rack buyers- 11.*15 10.15 Delivered in tank wagons- 14.6 12.6 Seller may add his customary price differentials on hose deliveries of range oil. No. 1 fuel oil, kerosene for quantities of less than 100 gallons, with maximum price of_ 15.6 18.1 Sec. 4. Applicability of CPR 17 provi¬ sions. (a) Sellers covered by this sup¬ plementary regulation shall remain sub¬ ject to all the provisions of Ceiling Price Regulation 17 except such provisions as are inconsistent herewith, and except the provisions of sections 25 and 26 thereof. (b) Sellers covered by this supple¬ mentary regulation must maintain cus¬ tomary discounts and allowances based upon terms and conditions of sale. Effective date. This supplementary regulation shall become effective Novem¬ ber 26, 1951. Michael V. DiSalle, Director, Office of Price Stabilization. November 20, 1951. ' . 1 • ' ' * *'■>«! . ■ . , ' FILE following 81 Trans 34:601 (1-7-52) 81 Trans 34:603 Inclusion of the City of Everett, Massachusetts Ceiling Price Regulation 17 Supplementary Regulation 4 Amendment 1 JAN. 7, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office* of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 17, Arndt. 1 to Supplementary Regulation 4] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Products, Natural Gas, Petroleum Gas, Casing¬ head Gas, and Refinery Gas SR 4-SALES OF CERTAIN PETROLEUM PROD¬ UCTS IN THE GREATER BOSTON AREA, IN- • CLUSION OF CITY OF EVERETT, MASS. Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Amendment 1 to Supplementary Regulation 4 to Ceiling Price Regulation 17 (16 F. R. 3033), is hereby issued. STATEMENT OF CONSIDERATIONS Section 2 (d) of Supplementary Regu¬ lation 4 defines the Greater Boston Area of Massachusetts by listing the Mas¬ sachusetts cities and towns in whose corporate limits the supplementary reg¬ ulation is applicable. Unintentionally the city of Everett was omitted from that list. As the city of Everett was considered in the survey made by the Boston Re¬ gional Office of the Office of Price Sta¬ bilization, and included in the discussion at conferences held by the Boston Re¬ gional Office with the segments of the petroleum industry involved, no further industrial advisory committee confer¬ ences were held prior to the issuance of this amendment. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the specific ceiling prices established by Supplementary Regulation 4 are generally fair and equi¬ table when applied to the city of Everett and are necessary to effectuate the pro¬ visions of Title IV of the Defense Pro¬ duction Act of 1950, as amended. AMENDATORY PROVISIONS Supplementary Regulation 4 to Ceil¬ ing Price Regulation 17 is amended by including in section 2 (d) thereof be¬ tween the words “Dover,” and “Hing- ham” the following: Everett, (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) This amendment shall become effec¬ tive January 12, 1952. Edward F. Phelps, Jr. Acting Director, Office of Price Stabilization. January 7, 1952. - «; FILE following 81 Trans 34:603 (2-21-52) 81 Trans 34:701 Navy Special Fuel Oil Ceiling Price Regulation 17 Supplementary Regulation 5 FEB. 15, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 17, Supplementary Regulation 5] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 5—SPECIFIC CEILING PRICES FOR NAVY SPECIAL FUEL OIL Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency Order No. 2, this Supplementary Regulation No. 5 to Ceiling Price Regulation 17 (16 F. R. 3033), is hereby issued. STATEMENT OF CONSIDERATIONS The purpose of this Supplementary Regulation 5 to CPR 17 is to establish a generally fair and equitable ceiling price for the sale or delivery of Navy Special Fuel Oil by Gulf, East and West Coast refiners. The demand for this fuel has increased substantially since the out¬ break of war in Korea and with the expansion of our Naval activities inci¬ dent to the present defense effort. Navy Special Fuel Oil is a residual type petroleum fuel made according to the specification of the U. S. Navy. It is somewhat comparable in use to Bunker “C” fuel oil, but its specifications mean a product of lower viscosity and better burning quality. It can be made as a product of distilling operations but more frequently is made as a blend of Bunker “C” fuel oil or other residual oil com¬ bined with cutter stocks. The type of cutter stocks used and the proportion thereof would vary with the refinery and type of crude oil being processed. Fin¬ ished No. 2 heating oil may be used as the cutter stock, but so also may unfin¬ ished heating oil or low grade cutter stocks not normally marketed commer¬ cially. General price standards. It is cus¬ tomary for the Office of Price Stabiliza¬ tion to look to prices established under normal competitive conditions as guides in the establishment of fair prices during periods of emergency. These - custom¬ ary practices have been used by the Agency in the establishment of ceiling prices for Navy Special. This follows the pattern of Ceiling Price Regulation 17. the basic petroleum regulation cov¬ ering bulk petroleum products, which is a freeze-type regulation taking base pe¬ riod competitive prices as its standard price structure. Prior to promulgating Ceiling Price Regulation 17, and after consulting with an Industry Advisory Committee, the Di¬ rector of Price Stabilization made a find¬ ing that the prices for petroleum prod¬ ucts in effect during the base period, December 19, 1950, to January 25, 1951, were generally fair and equitable. This finding has not been challenged by any major segment of the industry. It was inevitable, of course, that the base period would find certain products of the industry in a less profitable posi¬ tion than others, but this situation is en¬ tirely normal in an industry which is as complex and dynamic as the petroleum industry. This point is of the utmost impor¬ tance, since it is now contended by the oil companies which were consulted that the ceiling price for Navy Special Fuel Oil should be computed upon the basis of a weighted average, 70 percent weight for the ceiling price of Bunker C and a 30 percent weight for the ceiling price of No. 2 heating oil. Apart from the fact that this contention assumes the use of particular ingredients and that other in¬ gredients are also likely to be used, the contention is unsound as a binding prin¬ ciple. It is not generally fair and equi¬ table to buyers and sellers, since it dis¬ regards the fact that customarily prices for this product have not been deter¬ mined 6n that basis. Navy Special Fuel Oil has in fact consistently sold below the weighted average formula contended for. This was the case, for example, in the year prior to Korea, and has indeed been the fact, with only isolated excep¬ tions for short periods of time, since 1940. However, some adjustment from the base period delivery prices for cargo sales of Navy Special Fuel Oil is appropriate in order to meet military requirements. The basis for and the extent of the ad¬ justment are indicated below. Price history. The three coastal areas of the United States are considered by the industry as distinctive refining and marketing regions. On the West Coast, prices of $2.15 per barrel at Los Angeles and $2.20 per barrel at San Francisco are clearly established by the price pat¬ tern of sales of Navy Special between the outbreak of the Korean War and Janu¬ ary 25, 1951, the end of the base period. The low cargo price of Bunker “C” Fuel Oil on the Gulf Coast, as clearly established by many sales during the base period, was $1.75 and this is the prevailing ceiling price. During most of the period since World War II the mili¬ tary services have obtained supplies of Navy Special Fuel Oil op the Gulf Coast, on the East Coast and in the Caribbean at prices no higher than 17 cents per barrel over the low cargo price on Bunker “C” Fuel Oil published in ‘ Platt’s Oil- gram”. This amounted to prices for Navy Special Fuel Oil not exceeding $1.92 in the Gulf and Caribbean. But it is appropriate for various reasons to establish a higher ceiling than $1.92. First, the Armed Services Petroleum Procurement Agency has recently paid $2.00 per barrel for Navy Special in the Caribbean, or 25 cents over Bunker “C”. While prices in the Caribbean are not subject to price control, nevertheless, some weight must be given to the pattern in that area since it has historically been very closely related to U. S. Gulf Coast and East Coast prices. Even more important is the fact that the base period delivery price of $1.92, which represents a differential of 17 cents per barrel over Bunker “C”, reflects the sales of the single company which was the principal source of supply on the Gulf and East Coasts during the base period. Other companies are now being sought as sources of supply, and some¬ what different conditions may prevail for companies using different refining techniques. Great weight, therefore, is given to the fact that another major company had a base period posted price of $2.19 per barrel f. o. b. refinery for barge deliveries and this company has advised that its normal cargo price on this basis would have been $2.09 per barrel. This company and two other major companies are currently supplying Navy Special in barge quantities at equivalent prices. The above price history of Navy Spe¬ cial tends to indicate that a fair and equitable general ceiling price for cargo sales would be approximately $2.09 per barrel. However, a critical fact support¬ ing this conclusion, and leading to the ceiling price of $2.10, appears upon an examination of ceiling prices for com¬ parable sales of a similar commercial product. Such comparison may validly be made with certain gas-enrichment oils which have a different end use but which are very similar in quality and contain es¬ sentially the same components as Navy Special Fuel Oil. During the subsequent to the base period, one company posted a cargo price of $2.10 per barrel at the Gulf, which amounted to 35 cents per barrel over Bunker “C”. Three com¬ panies were selling gas-enrichment oils of essentially the same quality in the New York and New England areas at 81 Trans 34:702 prices ranging from 25 to 35 cents per barrel over Bunker “C”. In the light of the foregoing, a ceiling price of $2.10 per barrel for cargo sales of Navy Special Fuel Oil, f. o. b. Gulf Coast ports is established by this supple¬ mentary regulation. This is a fair and equitable price, reflecting full considera¬ tion of military needs and of the inter¬ ests of the suppliers and the public. The price histories cited above, the close historical relationship between Gulf and East Coast markets, and the normal relationship between prices in the two areas, justify the establishment of an East Coast price of $2.70 per barrel, which represents the same differential over a calculated East Coast cargo price for Bunker “C” as is established on the Gulf Coast. In the formulation of this Supplemen¬ tary Regulation, the Director of Price Stabilization has consulted with the Pe¬ troleum Administrator for Defense, the Armed Services Petroleum Agency and numerous representatives of the petro¬ leum industry who will be affected by this Supplementary Regulation. Al¬ though their recommendations have not been accepted in full, careful considera¬ tion has been given to them. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization, the prices established by this supplementary regulation are generally fair and equitable, and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. Applicability of this supplementary regu¬ lation. 2. Ceiling prices. 3. Applicability of Celling Price Regulation 17 provisions. Authority: Sections 1 to 3 Issued under sec. 704, 64 Stat. 816, as amended; 60 TT. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110. E. O. 10161, Sept. 9, 1950, 15 P. R. 6105, 3 CFR, 1950 Supp. Section 1. Applicability of this sup¬ plementary regulation. This supple¬ mentary regulation establishes ceiling prices for sales and deliveries of Navy Special Fuel Oil at the points described in section 2 of this regulation. Sec. 2. Ceiling prices, (a) The ceiling prices for Navy Special Fuel Oil in cargo lots f. o. b. tanker at the following points shall be: Ceiling price (per Location 42-gallon West Coast barrel) San Francisco Bay area_$2. 20 All California areas south of San Francisco Bay area_ 2. 15 Texas and Louisiana Gulf Coast ports (including Baton Rouge)_ 2. "0 Atlantic Coast ports of New York, N. Y.; Philadelphia, Pa.; and Balti¬ more, Md_ 2. 70 (b) Customary price differentials may be added to the ceiling prices set forth in paragraph (a) of this section for other methods of delivery for smaller quantities than cargo lots. Sec. 3. Applicability of CPR 17 provi¬ sions. Sales and deliveries covered by this supplementary regulation shall re¬ main subject to all the provisions of Ceiling Price Regulation 17 except sec¬ tion 11 and except any provisions which are inconsistent with the provisions of this supplementary regulation. Effective date. This supplementary regulation is effective February 15, 1952. Michael V. DiSalle, Director of Price Stabilization. February 15, 1952. FILE following 81 Trans 34:702 (3-3-52) 81 Trans 34:801 Ceiling Price Regulation 17 Supplementary Regulation 6 MAR. 3, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON q Adjustment of Ceiling Prices in Upper New York State TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 17. Supplementary Regulation 6| CPR 17—Gasolines. Naphthas. Fuel Oils and Liquefied Petroleum Prod¬ ucts. Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 6—adjustment of ceiling prices in UPPER NEW YORK STATE Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161 (15 F. R. 6105), and Eco¬ nomic Stabilization Agency General Or¬ der No. 2 (16 F. R. 738), this Supplemen¬ tary Regulation No. 6 to Ceiling Price Regulation 17 (16 F. R. 3033), is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation to Ceil¬ ing Price Regulation 17 is applicable to the f. o. b. terminal ceiling prices of ^ kerosene, distillate heating oils, Diesel fuels and gas enrichment oils along the upper Hudson River and the New York Barge Canal. A large volume of these products regu¬ larly distributed in up-state New York is transported into the area by barges on the upper Hudson River and the New York State Barge Canal from the New York Harbor area. These inland water¬ ways normally are closed to navigation in the winter season. Stocks of fuel oil transported in this manner are accu¬ mulated and stored in the summer for use during the following winter. Other methods of bringing products into the area include pipeline, truck transport and to some extent tank car shipment. In one area a refinery supplies consider¬ able volume. Despite this variation in transportation methods and costs, these products have generally been sold at a uniform price at each distribution point regardless of the method by which they were transported. Because of the sub¬ stantial volume shipped into the area by barge, the level of prices customarily re¬ flects the changes in barge transporta¬ tion rates. The upper Hudson River and the Barge Canal were closed in winter, as usual, in 1950-1951, including the base period of December 19, 1950 through January 25, 1951. When spring arrived, and navigation was reopened, contract carriers operating barges had no ceiling j prices, as the general pricing provisions U the General Ceiling Price Regulation which used base period deliveries or of¬ fers as the basis for pricing could not apply. Distributors of fuel oil for the 1951- 1952 season signed contracts with barge operators, some before, some during, and some subsequent to the base period, and these contracts specified a variety of transportation rates which reflected the fluctuating charter market. These rates were generally higher than compa¬ rable rates for the preceding season. In order to stabilize barge transporta¬ tion costs the Office of Price Stabilization issued Supplementary Regulation 12 (and Amendment 1 thereto) to the Gen¬ eral Ceiling Price Regulation which es¬ tablished ceilings for barge rates. How¬ ever, in recognition of transportation contracts entered into prior to the gen¬ eral freeze date, the barge ceilings were set at levels higher than those in effect when dealers computed the prices for fuel oils which were being sold during the base period. Ceiling Price Regulation 17 included in section 25 a provision allowing a pass through of post-base period transporta¬ tion cost increases which are directly at¬ tributable to an increase in transporta¬ tion rates permitted by the Office of Price Stabilization or a State or Federal Regulatory body. The transportation cost increases over 1950 resulting from the barge rates established by OPS have thus resulted in higher ceiling prices except for those distributors whose barge contracts were signed prior to the end of the base pe¬ riod and those who receive their fuel oil by other modes of transportation. However, increases in rail rates author¬ ized by the Interstate Commerce Com¬ mission have also been reflected in higher ceiling prices which vary by lo¬ cality and from seller to seller. This supplementary regulation imple¬ ments the principle contained in section 25 of CPR 17 and restores the customary price relationships in each specific mar¬ keting area by spelling out uniform amounts of increase based upon the in¬ creases in barge rates. The increases in f. o. b. terminal ceiling prices for kero¬ sene, No. 2 fuel oil and other distillates range from 0.1 cent to 0.4 cent per gallon. In the preparation of this regulation, the director consulted with industry representatives, including representa¬ tives of trade associations, to the extent practicable and gave consideration to their recommendations. Representatives of both major and in¬ dependent oil companies throughout the affected area conferred with the New York Regional Office staff in regard to the pricing problems involved, and have submitted ecoonmic data to support their request for price action. In the judgment of the Director of Price Stabilization the adjustment of ceiling prices permitted by this supple¬ mentary regulation is generally fair and equitable and is necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. regulatory provisions Sec. 1. Applicability of supplementary regulation. 2. Amount of adjustment. 3. Definitions. 4. ApplicabiUty of CPR 17 provisions. Authority: Sections 1 to 4 Issued under sec. 704, 64 Stat. 816, Pub. Law 06, 82d Cong.; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, Pub. Law 96, 82d Cong.; 50 U. 8. C. App. Bup. 2101-2110, E. O. 10161, 8ept. 9, 1950, 15 P. R. 6105, 3 CPR, 1950 Supp. Section 1. Applicability of supplemen¬ tary regulation. This supplementary regulation is applicable to those sellers who are engaged in the distribution of kerosene, distillate heating oils, Diesel fuels and gas enrichment oils at stated terminal points and in those price areas where prices for these products are cus¬ tomarily based on the prices at the enu¬ merated terminal points. The ceiling prices affected include both f. o. b. and delivered ceilings. Sec. 2. Atnount of adjustment. A seller of kerosene, distillate heating oils, Diesel fuels and gas enrichment oils, en¬ gaged in the distribution of such products at the terminal points enumerated below, or in price areas where prices for these products are customarily based on the prices at these enumerated terminal points, may add to his base period ceiling price the amount designated herein for the terminal point or price area. Cents Terminal points: per gallon Binghamton, N. Y_ Johnson City, N. Y_ Willow Point, N. Y__. . Buffalo, N. Y.... Tonawanda, N. Y_ North Tonawanda, N. Y_ Kenmore, N. Y_._._ Batavia, N. Y_._;_ Elmira, N. Y- Big Flats. N. Y1.. Watkins Glen. N. Y__ Geneva, N. Y__ Ithaca. N. Y.... Cortland, S. Y... Olean. N. Y...... Weilsville. N. Y. Rochester. N. Y.._.___ Pittsford. N. Y.. Wayland. N. Y.. Oates, N. Y.. Chill, N. Y...... Palmyra, N. Y_..._ Waterloo, N. Y.... Brockton, N. Y____ Weeds port, N, Y..... Clyde. N. Y.. Syracuse, N. Y............. Brewer ton, N. Y_...._..... Baldwlnsvllle, N. Y.. Cold Springs, N. Y_ Liverpool, N. Y _... 0.2 .2 .2 .3 .3 .3 .3 .4 .2 .2 .2 .2 .3 .3 .3 .3 .4 .4 .4 .4 4 .4 A A 9 4 4 4 4 4 4 81 Trans 34:802 Cents Terminal points: per gallon Three Rivers. N. Y.. 0 .3 Amsterdam, N. Y- .1 Fonda, N. Y..— .1 Fultonville, N. Y_ .1 Fort Plain, N. Y_ .2 Little Falls, N. Y_ .2 Fort Edward, N. Y_ .2 Fort Ann, N. Y_ .2 Dunham's Basin, N. Y_ .2 Northumberland, N. Y- .2 Ogdensburg, N. Y_ .2 Clayton. N. Y- .2 Plattsburg, N. Y_ .2 Rome, N. Y.- .2 Sackets Harbor, N. Y_ .2 Schenectady, N. Y_None Scotia, N. Y_ None Cohoes, N. Y___None Utica, N. Y_ .2 Marcy, N. Y_ .2 Westport, N. Y_ .2 Whitehall. N. Y_ .2 Cents Terminal points. per gallon Montcalm Landing, N. Y_ 0 .2 Port Heny, N. Y.__^_ .2 Crown Point, N. Y_ .2 Burlington, Vt_ .2 St. Albans, Vt_ .2 Sec. 3. Definitions. As used in this supplementary regulation: (a) “Price area” means that geographical area where the products covered by this sup¬ plementary regulation are customarily sold at prices which are based on a par¬ ticular terminal point price, by virtue of the terminal point’s position as the prin¬ cipal source of supply for these products. (b) “Base period ceiling price” refers to the ceiling price cf a seller under Ceiling Price Regulation 17 exclusive of such additions under Section 25 thereof as may have been applied by the seller because of increased transportation rates. Sec. 4. Applicability of CPR 17 pro¬ visions. (a) Sellers covered by this sup¬ plementary regulation shall remain sub¬ ject to all the provisions of Ceiling Price Regulation 17 except such provisions as are inconsistent herewith. (b) Sellers covered by this supplemen¬ tary regulation must maintain cus¬ tomary discounts and allowances based upon terms and conditions of sale. Effective date. This supplementary regulation shall become effective March 8, 1952. _ Ellis Arnall, Director, Office of Price Stabilization. March 3, 1952. FILE following 81 Trans 34:802 (5-12-52) 81 Trans 34:901 Resellers of Ceiling Price Regulation 17 Liquefied Petroleum Gas Supplementary Regulation 7 MAY 12. 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Supplementary Regulation 7] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Gases, Natural Gas, Petroleum Gas, Casing¬ head Gas and Refinery Gas SR 7—RESELLERS OF LIQUEFIED PETROLEUM GAS Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Sup¬ plementary Regulation to Ceiling Price Regulation 17 is hereby issued. STATEMENT OF CONSIDERATIONS 'Propane, Butane, and Propane/Bu¬ tane mixtures, usually referred to as Liquefied Petroleum Gas by industrial users, and as “bottled gas” by residential consumers, are manufactured from vapors extracted from natural gas and refinery gas. Production, storage, and distribution of liquefied petroleum gas constitutes a relatively new and rapidly growing industry, consumption having increased from approximately 313 mil¬ lion gallons in 1940 to over 4 billion gal¬ lons in 1951. Prior to and during the base period of December 19, 1950-January 25, 1951 prices for this product were rising under an increasing demand usual to the win¬ ter months, accentuated by the general increasing demand for this product. Ceiling prices of resellers of this product were first established by the General Ceiling Price Regulation, effective Jan¬ uary 26, 1951 which froze prices gener¬ ally at the level of the highest prices charged during the base period. With minor modifications Ceiling Price Regu¬ lation 17 has carried over the same pricing method. Because of the time lag involved in distributing liquefied pe¬ troleum gas, the prices charged by many resellers during the base period did not reflect the higher prices charged by their suppliers and by producers during the base period In addition to the higher product cost from usual supply sources, increased de¬ mand has made it necessary for many resellers to buy substantial amounts of their supply from more distant sources at higher cost; also transportation costs, which are particularly important for re¬ sellers of these products have increased because of the general increases in rail freight rates. While margins of profit among re¬ sellers vary, these margins are generally narrow, and any substantial Increase in costs of obtaining the product results in hardships for the reseller. Because of this, numerous applications have been received from distributors of liquefied petroleum gas for adjustments in ceiling prices to avoid the reduction In their gross and net margins which they have experienced. For these reasons, and as an interim step in the formulation of a tailored reg¬ ulation for the liquefied petroleum gas industry, the original freeze technique is being modified to permit resellers to adjust their ceiling prices to reflect these increased product and transportation costs. This regulation contains two adjust¬ ment provisions. The first provision permits the addition to ceiling prices of the increase in cost of product and trans¬ portation that has occurred during the first year of price control This ad¬ justment may be taken immediately. The second provision permits resellers a one-time, interim adjustment to reflect increases in product and transportation costs that have bccurred since January 31, -1952. In order to prevent this ad¬ justment on the basis of isolated high cost spot purchases, the reseller may ad¬ just his ceiling prices only to the extent that the average of these costs for the three-month period immediately prior to his selected date of adjustment has in¬ creased above costs at the end of the first year of price control. In the formulation of this supplemen¬ tary regulation there has been consulta¬ tion with industry representatives, including trade association representa¬ tives, and consideration has been given to their recommendations. In the judgment of the Director of Price Stabilization, the provisions of this supplementary regulation are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS 8ec. 1. What this supplementary regulation does. 2. Cost Increases to retail distributors through January 31, 1952. 3. Cost Increases to resellers at wholesale through January 31, 1952. 4. Cost Increases to retail distributors and wholesalers after January 31, 1952. 5. Relation to Celling Price Regulation 17. 6. Customary discounts. 7. Records. 8. Definitions. Authority : Sections 1 through 8 Issued under sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 60 U. S. C. App. Sup. 2101-2110, E. O. 10161, Sept. 9, 1950, 16 P. R. 6105, 8 CPR 1960 Supp. Section 1. What this supplementary regulation does. If you resell liquefied petroleum gas at any level of distribution other than at a retail establishment (as covered by Ceiling Price Regulation 13) you may redetermine your ceiling prices under the provisions of this supplemen¬ tary regulation. If you do determine your ceiling prices under this regulation and put these new ceiling prices into effect, you may not again determine your ceiling prices under this supplementary regulation unless there is an increase in the ceiling price of your supplier as a result of the operation of this regulation or of another official act of the Office of Price Stabilization. Sec. 2. Cost increases to retail distrib¬ utors through January 31, 1952. (a) If you are a retail distributor of liquefied petroleum gas you may increase your original Ceiling Price Regulation 17 ceil¬ ing prices in each pricing area to each class of purchaser and for each quantity bracket by the amount of increase in laid-down cost per unit you have in¬ curred at each of your distribution points. This increase shall be either (1) the difference between your average laid-down cost per unit during the three- month period ending January 31, 1951, and your average laid-down cost per unit during the three-month period ending January 31, 1952; or (2) the difference between your average laid-down cost per unit during the calendar year of 1950 and your ayerage laid-down cost per unit during the three-month period end¬ ing January 31, 1952. (b) If you determine ceiling prices in accordance with this section for any one customer or for any quantity bracket, you must determine ceiling prices by the same method for all customers and quantity brackets in the same pricing area. (c) This section shall not be applica¬ ble to sales of liquefied petroleum gas where all or part of the product sold in such area has been produced or manu¬ factured by you. Sec. 3. Cost increases to resellers at wholesale through January 31,1952. (a) If you are a reseller of liquefied petro¬ leum gas at the wholesale level, your ceiling prices for each shipping or de¬ livery point to each class of purchaser may be increased by the amount of in¬ crease in ydjur laid-down cost per unit at that shipping or delivery point since January 31, 1951. This increase is the difference between your average laid- down cost per unit at each shipping or delivery point during the three-month period ending January 31,1951, and your average laid-down cost per unit during the three-month period ending January 31, 1952. (b) If you determine your ceiling prices for one class of customer at any shipping or delivery point by the method set forth in this section, you must deter¬ mine your ceiling prices for all classes 81 Trans 34:902 of purchasers at the same point by the same method. (c) If you resell liquefied petroleum gas at the retail distributor level and also at the wholesale level, you must make separate computations of ceiling prices at each level when adjusting your ceiling prices under this supplementary regulation. (d) This section shall not be applica¬ ble to sales of liquefied petroleum gas when all or part of the product sold at such shipping or delivery point has been produced or manufactured by you. Sec. 4. Cost increases to retail distrib¬ utors and wholesalers alter January 31, 1952. If your laid-down cost is in¬ creased after January 31, 1952, as a re¬ sult of an increase in the ceiling prices of your supplier or suppliers because of the operation of this regulation, or other official act of the Office of Price Stabi¬ lization, or as a result of an increase in transportation costs incurred in obtain¬ ing your product, you may increase your ceiling price under this regulation by the dollars and cents amount of such in¬ crease. This increase is the difference between your average laid-down cost during the three-month period ending January 31, 1952, and your average laid- down cost during the three calendar month period prior to the month during which such increase in ceiling price is placed in effect. This adjustment may be made at any time selected by the seller but may not be made more than once. Sec. 5. Relation to Ceiling Price Reg¬ ulation 17. (a) If you are a reseller of liquefied petroleum gas and have ceiling prices determined under the provisions of Ceiling Price Regulation 17 you may continue to use those ceiling prices. (b) Sellers subject to this supple¬ mentary regulation shall be subject to all provisions of Ceiling Price Regulation 17 not inconsistent with the provisions of this supplementary regulation. Sec. 6. Customary discounts. If you determine your ceiling prices under this supplementary regulation you must con¬ tinue to maintain your customary dis¬ counts and allowances based upon the terms and conditions of sale. Sec. 7. Records. In addition to such other records as are required by section 14 of Ceiling Price Regulation 17, you must, if you use this supplementary regulation to adjust your ceiling prices, keep records clearly showing how you determined your adjusted ceiling prices, and those records which you used as a basis for such determination. Sec. 8. Definitions, (a) “Liquefied pe¬ troleum gas” means butane, propane and butane/propane mixtures. (b) "Laid-down cost" means the amount per unit paid to your supplier or suppliers for the product plus the unit cost of transportation incurred by you in moving the product to the ship¬ ping or delivery point or in the case of a retail distributor to place of storage or its equivalent. Where you use your own transportation or transportation you control in lieu of transportation for which rates are set or controlled by Fed¬ eral or State regulatory bodies, the cost of transportation referred to in this definition shall be the rate charged by such controlled carrier. (c) “Original Ceiling Price Regulation 17 ceiling prices” means the first ceiling prices determined under the provisions of Ceiling Price Regulation 17, excluding any increases thereafter permitted by that regulation or by any other official act of the Office of Price Stabilization. (d) “Pricing area” means that geo- grahical area in which you maintain a single pricing schedule for all customers of the same class and for each quantity bracket. (e) -“Retail distributor” means a re¬ seller whose ceiling prices of liquefied pe¬ troleum gas are determined by Ceiling Price Regulation 17 and whose sales are primarily to consumers at the retail level. Effective date. This supplementary regulation shall become effective May 12, 1952. Noth: The record-keeping requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Ellis Arnall, Director of Price Stabilization. May 12, 1952. FILE following 81 Trans 34:902 (6-23-52) 81 Trans 34:1001 Adjustment of Ceiling Prices— Ceiling Price Regulation 17 No. 2 Fuel Oil in Baltimore Area Supplementary Regulation 8 JUNE 23, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Celling Price Regulation 17, Supplementary Regulation 8| CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 8, ADJUSTMENT OF CEILING PRICES OF NO. 2 FUEL OIL IN BALTIMORE AREA Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161 and Economic Stabilization Agency Order No. 2, this Supplementary Regulation .No. 8 to Ceiling Price Regu¬ lation 17, is hereby issued. STATEMENT OF CONSIDERATIONS This action authorizes an increase of $0,003 per gallon for tank wagon deliv¬ eries of No. 2 Fuel Oil in the Metropoli¬ tan Baltimore, Maryland area. Such in¬ crease is based upon and is consistent with the principles embodied in the in¬ dustry earnings standard. Early in the 1951-52 heating season, sellers of domestic heating oils in the Baltimore, Maryland area applied for a price increase. Data was submitted by individual firms which showed that de¬ spite increases in the volume of sales their percentage of profit as related to sales and net worth was significantly lower than that of 1950 and prior years. Application of the industry earnings standard to the fuel oil distributors in the Baltimore, Maryland area indicated that an increase of $0,003 per gallon for tank wagon deliveries of fuel oil to do¬ mestic consumers in the Metropolitan Baltimore, Maryland area was necessary to meet the minimum requirements of the standard. In the judgment of the Director of Price Stabilization the increase herein granted is consistent with the principles embodied in the earnings standard as applied to distributors of essential com¬ modities in a local area. In the formulation of this regulation there has been consultation with indus¬ try representatives, including trade asso¬ ciations representatives, and considera¬ tion has been given to their recommen¬ dations. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization this Supplementary Regulation 8 is generally fair and equita¬ ble and necessary to effectuate the pur¬ poses of Title IV of the Defense Produc¬ tion Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. What this regulations does. 2. Increase in celling prices. 3. Applicability of provisions of Ceiling Price Regulation 17. Authority : Sections 1 to 3 Issued under sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title PV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110, Sept. 9, 1950, 15 P. R. 6105, 3 CPR, 1950 Supp. Section 1. What this regulation does. This regulation is applicable to tnose sellers of No. 2 Fuel Oil when selling that product to consumers at the tank wagon level in the Baltimore, Maryland area. It permits these sellers to add $0,003 per gallon to their ceiling price. Sec 2. Increase in ceiling prices. On and after the effective date of this regu¬ lation each seller of No. 2 Fuel Oil may increase his ceiling price for this product $0,003 per gallon for tank wagon deliv¬ eries in the City of Baltimore, Maryland or within a radius of 16 miles from Balti¬ more City Hall. Sec. 3. Applicability of provisions of Ceiling Price Regulation 17. Sellers cov¬ ered by this supplementary regulation shall remain subject to all the provisions of Ceiling Price Regulation 17, as amended, except such provisions as are inconsistent herewith. Effective date. This supplementary regulation shall become effective on the 28th day of June 1952. Ellis Arnall, Director, Office of Price Stabilization. June 23, 1952. • . IH ( K . FILE following 81 Trans 34:1001 (6-30-52) 81 Trans 34:1011 SR 9—Tank Wagon and Rack Ceiling Prices in Certain West Coast Refinery and Terminal Price Areas OFFICE TITLE 32A -NATIONAL DEFENSE, ^ / APPENDIX Chapter Sti—Office oJ Price SihuKkfJka- tion, El*, .on- >!;'i:<iiior Agencv [Celling Price Regulation 17, SuppU nc-uirr Regulation 91 CPR 17—Gasolines, Naphthas, Fuel Oils and Llquefied Petroleum Gases, Natural Gas, Petroleum Gas, Casing¬ head Gas and Refinery Gas SR 9-TANK WAGON AND RACK CEILING PRICES IN CERTAIN WEST COAST REFINERY AND TERMINAL PRICE' AREAS Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this Sup¬ plementary Regulation 9 to Ceiling Price Regulation 17 is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation to Ceiling Price Regulation 17 establishes specific dollars-and-cents ceiling prices for tank wagon and “rack” sales of auto¬ motive gasoline in certain West Coast refinery and terminal price areas. The prices normally charged by wholesalers of motor gasoline in these areas for tank wagon sales were approximately uniform in each area for several years antedating the issuance of Ceiling Price Regulation 17. For “rack gasoline”, however, which was sold in substantial volume at the refineries or refinery facilities and at certain bulk storage plants, sales were made to a special class of purchasers at a customary differential below the prevailing tank wagon price for the area. This type of discount transaction is cus¬ tomarily referred to as the sale of “rack gasoline” or “rack price gasoline.” This gasoline is sold either f. o. b. the refinery or bulk plant, with transportation pro¬ vided by the ultimate consumer or buyer, or is sold on a delivered-at-destination basis which consists of the “rack price” plus customary transportation charges. In establishing specific dollars-and- cents ceiling prices in the areas desig¬ nated, consideration has been given to the correction of price inequities which existed to a minor degree in some in¬ stances. Such inequities were caused mainly by price wars which were in effect immediately prior to and during the base period. Failure to adjust these ceiling prices would prolong existing price in¬ equities among sellers and retain price inequities which would have been elim¬ inated had the market been free to ad¬ just itself. Examination of prices on “rack gaso¬ line” shows that the customary differen¬ tial off tank wagon is predominantly 3 cents per gallon, as established in this regulation. In a few instances the dis¬ count is slightly less than 3 cents, while OF PRICE STABILIZATION WASHINGTON in others it is higher as a result of price war conditions which existed during the latter part of 1950 and continued through the base period. It is also the purpose of this supple¬ mentary regulation to restore and es¬ tablish the customary differential be¬ tween the tank wagon ceiling price and the “rack” ceiling price to give relief to those sellers whose ceilings were frozen at abnormally low levels. The determination of ceiling prices, as effected by this supplementary regula¬ tion, is regarded as essential to the main¬ tenance of gasoline supplies through customary channels of distribution. Depletion of gasoline inventories has re¬ sulted in a tight supply situation and a dislocation of supply channels threatens within the areas unless the price inequi¬ ties are removed. The customary pricing practice on the Pacific Coast is to quote wholesale prices for deliveries other than by tank wagon in terms of discounts under or premiums over the tank wagon price. It is, there¬ fore, essential to establish, coincident with the restoration of the normal differ¬ ential for “rack” transactions, the pre¬ vailing tank wagon prices as the ceiling prices. * Evidence is on file to show that the posted tank wagon prices of sellers in the areas covered by this supplemen¬ tary regulation were, as of September 1, 195-1, and have continued to be the pre¬ vailing tank wagon prices. No change in general price levels is being affected. Be¬ cause of the existence .of reasonably uniform prices, the establishment of dollars-and-cents prices is facilitated. The specific tank wagon prices which are spelled out by this regulation were in effect in the latter part of 1950; they became the ceilings during the base period; and have been maintained to date. They are regarded by the West Coast Petroleum Wholesale Industry Advisory Committee as fair and equit¬ able. Moreover, the establishment of dollars-and-cents ceiling prices for tank wagon deliveries is in accordance with the announced policy of this Agency to establish specific ceiling prices, which situation is desirable from the standpoint of the consuming public, the sellers and the Government. In the preparation of this supplemen¬ tary regulation the Director has con¬ sulted with industry representatives in¬ cluding the West Coast Petroleum Wholesale Industry Advisory Committee and trade association representatives, to the extent practicable and has given con¬ sideration to their recommendations. In the judgment of the Director of Price Stabilization, the provisions of this supplementary regulation are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. Ceiling Price Regulation 17 Supplementary Regulation 9 JUNE 30, 1952 REGULATORY PROVISIONS Sec. 1. Applicability of supplementary regu¬ lation. 2. Definitions. 3. Celling prices for tank wagon deliveries. 4. Rack gasoline. 5. Transportation. 6. Applicability of Celling Price Regula¬ tion 17. Authority: Sections 1 through 6 issued under sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110, E. O. 10161, Sept. 9, 1950, 15 F. R. 6105, 3 CFR, 1950 Supp. Section 1. Applicability of supplemen¬ tary regulation. This supplementary regulation sets specific ceiling prices for tank wagon sales of regular, automotive and marine gasoline, sets a specific dis¬ count of 3 cents per gallon for sales of “rack gasoline” and sets quantity differ¬ entials in the areas of San Francisco Bay, Hanford, Bakersfield, Stockton, and Sacramento, California; Portland, Ore- gdft; Tacoma and Seattle, Washingtofi. This regulation is not applicable, nor does it refer to cargo sales of gasoline. Sec. 2. Definitions. When used in this supplementary regulation the term; (a) San Francisco Bay area includes Richmond, Oleum, Martinez, Avon Re¬ finery and Terminal Price Area, includ¬ ing Parr Terminals in Cities of Oakland and Alameda and is that area bounded by a line commencing at a point on the easterly shoreline of San Francisco Bay immediately south of Mulford Landing (approximately West Avenue 144 if said avenue were projected to San Francisco Bay); thence, running due east to East 14th Street; thence, running northwest¬ erly along Skyline Boulevard to the common boundary line of Contra Costa and Alameda Counties; thence, running northwesterly along Lake Chabot Road, Skyline Boulevard and Grizzly Peak Boulevard, approximately following the common boundary lihe of Contra Costa and Alameda Counties to a point at the northeast corner of the University of California Campus; thence, running due north to Pinole Valley Road; thence, running in an easterly direction along Finole Valley Road to its junction with Bear Creek Road and Alhambra Valley Road; thence, running in a straight line to the southern and eastern city limits of Clayton; thence, running due north to a point on the south shoreline of Suisun Bay east of McAvoy; thence, running generally in a western direction along the south shoreline at Suisun Bay, Car- quinez Straights and San Pablo Bay, embracing the cities of Port Chicago, Avon, Martinez, Port Costa, Crockett, Oleun, Rodeo, Pinole, and Richmond; thence, running southeasterly along the shoreline of San Francisco Bay to the point of commencement. 81 Trans 34:1012 (b) Hanford area includes Hanford Refinery and Terminal Price Area, and is that area bounded by a line commenc¬ ing at a point at the southerly limits of Traver on Highway 99, thence, due west to the northerly limits of Laton, thence, southwest to the westerly limits of Hard¬ wick, thence, due south to Kansas Road, thence, east along Kansas Road to a point due south of point of commence¬ ment, thence, due north to point of com¬ mencement. (c) Bakersfield area includes Bakers¬ field Refinery and Terminal Price Area and is that area bounded by a line com¬ mencing at the northwest part of the town of Lerdo, thence, southwesterly to intersection of Enos Lane and Fraser Road, thence, southerly on Enos Lane to its intersection with U. S. Highway 399 (Taft-Bakersfleld Highway), thence, east through and including towns of Old River and Panama to and including Greenfield, thence, northeasterly to Town of Edison, thence, north to and including Granite Station, thence, southwesterly to point of commence¬ ment. (d) Stockton, California, includes Stockton Terminal Price Area and is that area bounded by a line commenc¬ ing at the intersection of U. S. Highway 99 and Eight Mile Road, thence, west to intersection with Thornton Road, thence, westerly to confluence of San Joaquin and Old River, thence, south¬ erly along Old River to and including Woodward Island, thence, east to Middle River, thence, southeasterly along Middle River to a point where Highway 120 crosses Middle River, thence, east along Highway 120 to and including Simms, thence, north to and including Town of Linden to Waterloo Road, thence, west to Jack Tone Road, thence, north to Eight Mile Road, thence, west to point of commencement. (e) Sacramento, California, includes Sacramento Terminal Price Area and is that area bounded by a line commenc¬ ing at the intersection of Sankey Road with Sacramento River, thence, east to Sutter County line, thence, south to Sacramento County line, thence, east¬ erly along county line to a point due north of Town of Antelope, thence, south on a line to include Antelope, Carmichael, Mills, and Mather Air Force Base to Highway 16, thence, southwest to and including Florin, thence, due west to a point two miles west of Sacramento River, thence, northerly along a line two miles west of the Sacramento River including West Sacramento, Broderick and Bryte to a point two miles due west of point of commencement, thence, due east to point of commencement. (f) Portland, Oregon, includes Port¬ land Terminal Price Area and is that area bounded by a line commencing at Columbia River, thence, southerly and east along the west bank of said river to a point due north of 122nd Avenue, thence, south through Gilbert to Mult¬ nomah County Line, thence, southwest through Battin and Milwaukee to and including Oswego, thence, north to the Multnomah County-Washington County line following same northwesterly to point of commencement, including the towns of Hillsdale, Willbridge, and Burlington. (g) Tacoma, Washington, includes Tacoma Terminal Price Area and is that area bounded by a line commencing at the northern section of Pierce County line to Puget Sound, thence, east and southeast along County line to and in¬ cluding Milton, thence, south on a line west of Puyallup to Kirby, thence, west through Loveland and below Fort Lewis to the 'Nisqually River, thence, north through Dupont to Puget Sound and northward along east shortline thereof to point of commencement. (h) Seattle, Washington, includes Seattle Terminal Price Area, and is that area bounded by a line commencing at Meadowdale on east shore of Puget Sound, thence, due east to U. S. High¬ way 99, thence, southeast to and includ¬ ing Kenmore at the north end of Lake Washington, thence, southerly along west shore of Lake Washington to and including Renton, thence, southwest on a line including Tukwila and Sunnydale to Three Tree Point on the east shore of Puget Sound, thence, northerly along east shore of Puget Sound to point of commencement. Sec. 3. Ceiling prices for tank wagon deliveries, (a) Ceiling prices per gallon for tank wagon deliveries of regular gas¬ oline in the enumerated areas and for the respective quantity differentials set forth shall be as follows: Regular grade gasoline, e all taxes xcluiling 40(1 gal¬ lons and over 200-309 gal¬ lons 40-199 gal¬ lons Under 40 gal¬ lons San Francisco Bay... 14.5 15.0 15.5 18.5 Hanford___ 15.7 10.2 10.7 19.7 Bakersfield_ 14.5 15.0 15.5 18. 5 Stockton__ 15.7 10.2 10.7 19.7 Sacramento.. 15.7 10.2 10. 7 19.7 Portland_ 15. 0 15.5 10.0 19. 0 Seattle..... 15. 0 15.5 10.0 19.0 Tacoma___ 15.0 15. 5 10.0 19. 0 (b) Ceiling prices for premium grade gasoline in the aforementioned areas for each seller shall be his price for regular gasoline as listed in paragraph (a) of this section for that area, to which he shall apply his customary differential between regular and premium grades of gasoline delivered by tank wagon. (c) Ceiling prices for third grade gaso¬ line in the aforementioned areas for each seller shall be his price for regular grade gasoline as listed in paragraph (a) of this section for that area, to which he shall apply his customary differential between regular and third grade gaso¬ line delivered by tank wagon. Sec. 4. Rack gasoline, (a) The ceil¬ ing price for “rack gasoline” of regular grade, f. o. b. refineries or refinery fa¬ cilities or bulk plant facilities to that class of purchaser buying “rack gaso¬ line” in the areas covered by this regu¬ lation shall be 3 cents per gallon below the specified tank wagon ceiling prices for quantities as established in section 3 (a) of this supplementary regulation. (b) The ceiling price of a refiner for “delivered-at-destination” sales of “rack price gasoline” originating in the areas set forth in Section 1 shall be the f. o. b. ceiling price for such gasoline as estab¬ lished by paragraph (a) of this section, plus the refiner's customary transporta¬ tion charge. <c) The ceiling price of resellers of “rack price gasoline” which originates in any of the areas covered by this reg¬ ulation shall be increased by the amount of increased cost of product to the re¬ seller resulting from increases in ceil¬ ing prices permitted their suppliers by this supplementary regulation, irrespec¬ tive of the location of the sale within or without the areas covered by this regula¬ tion. (d) To determine ceiling prices for premium grades of rack gasoline, each seller shall apply his customary whole¬ sale differential between regular and premium grades. To determine ceiling prices for third grade rack gasoline each seller shall apply his customary whole¬ sale differential between regular and third grade gasoline. Sec. 5. Transportation. The ceiling prices established under this regulation may be adjusted to reflect increases in transportation costs, occurring since September 1, 195^., in accordance with section 25 of Ceiling Price Regulation 17. Sec. 6. Applicability of Ceiling Price Regulation 17. Sellers subject to this supplementary regulation shall be sub¬ ject to all provisions of Ceiling Price Regulation 17 not inconsistent with the provisions of this supplementary regula¬ tion. Effective date. This supplementary regulation shall become effective June 30, 1952. Ellis Arnall, Director of Price Stabilization. June 30, 1952. FILE following 81 Trans 34:1012 (6-30-52) 81 Trans 34:1021 OFFICE OF PRICE STABILIZATION WASHINGTON Specific Ceiling Prices for Middle Distillates on the East Coast TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Supplementary Regulation 10] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Products, Natural Gas, Petroleum Gas, Casing¬ head Gas and Refinery Gas SR 10—SPECIFIC CEILING PRICES FOR MIDDLE DISTILLATES ON THE EAST COAST Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabiliza¬ tion Agency General Order No. 2, this Supplementary Regulation No. 10 to Ceiling Price Regulation 17 is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation estab¬ lishes specific cents-per-gallon ceiling prices at named Eastern Seaboard refin¬ ery and terminaling points for kerosene, No. 2 heating oil and the principal grades of Diesel fuel. These ceiling prices rep¬ resent an increase of 0.65 cents per gal¬ lon over the base period ceiling in tank car prices for f. o. b. delivery of No. 2 fuel oil at North Atlantic refineries and seaboard terminals, and the regulation provides for a pass-through of that 0.65- cent increase at subsequent levels of sale. In addition a further increase of 0.15 cents per gallon is allowed such resellers as bulk plant operators, independent jobbers or distributors receiving their products from the seaboard terminal and refinery points at the newly estab¬ lished ceilings. Where the seaboard refinery or terminal operators may make sales to buyers other than bulk plant operators—for example, direct sales to large commercial accounts, they, the re¬ finery or terminal operators, also are permitted to add the 0.15 cents in keep¬ ing with established industry practices. However, in no case will the ceiling price to an ultimate consumer be increased more than 0.8 cents per gallon above present ceiling prices by this supplemen¬ tary regulation. The problem of providing for adequate supplies of middle distillates, particu¬ larly No. 2 heating oil, for both domestic and industrial consumers on the Eastern Seaboard has vexed the responsible agencies of Government and the indus¬ try, as well as consumers, continuously since late 1951. The common denomi¬ nator in all approaches toward solution of the problem has been the recognition that adequate supplies of these prod¬ ucts must be made available on the East¬ ern Seaboard throughout the heating season if grave disruption of the do¬ mestic economy and injury to the de¬ fense program are to be avoided. The problem is complicated by many factors of product price, both on the- Eastern Seaboard and in the Gulf (whence most of the supplies are obtained), competi¬ tive forces within the industry, fluctuat¬ ing transportation costs and even the vagaries of the weather. Consequently, in the continuing study of the problem a mass of material has been developed by the Office of Price Stabilization, Pe¬ troleum Administration for Defense, the Economic Stabilization Agency and other sources. In order to resolve conflicts in views and recommendations variously advanced, and to insure that adequate supplies of middle distillate fuel oils will be made available on the Eastern Sea¬ board during the coming heating sea¬ son, Dr. J. R. Steelman, Acting Director, Office of Defense Mobilization, has issued a directive in the form of a letter ad¬ dressed to Mr. Roger Putman, Admin¬ istrator, Economic Stabilization Agency. The full text of that letter is quoted be¬ low: Executive Office of the President OFFICE OF DEFENSE MOBILIZATION Washington 25, D. C., June 13, 1952. Office of the Director Hon. Roger L. Putnam, Administrator, Economic Stabilization Agency, Washington, D. C. Dear Mr. Putnam: This is in reference to your letter of June 11, regarding the proposed increase in the price of heating oil on the East Coast. I have examined with great care the materials presented by your Office, by the Office of Price stabilization and by the Petroleum Administration for Defense. It is extremely important that we take all necessary actions to assure an adequate supply of fuel oil for the East Coast during the coming heating season. At the same time, in the interests of protecting con¬ sumers against unnecessary increases in the cost of living, it is imperative that any in¬ crease in the price of fuel oil which may be made to facilitate shipments of oil to the east coast should be held to the minimum. I am also concerned about the effects which any action taken may have upon job¬ bers and local distributors of fuel oil. Due allowance should be given to the effects of an increase in wholesale prices upon their Oper¬ ating costs. I am also concerned about interferences with normal contracting and marketing prac¬ tices which may have been, or subsequently may be, caused by uncertainties regarding the price structure for fuel oils, during the coming heating season. It is highly impor¬ tant; that we take definite and final action at this time. It is my conclusion, after very careful study of all of the evidence which has been sub¬ mitted, that an increase in the East Coast re¬ tail price of distillate fuel oils of 0.80 cents per gallon should be authorized, and that 0.15 cents per gallon of this increase should be reserved for jobbers and distributors. I am sending a copy of this letter to the Secretary of the Interior, and am asking him to cooperate to the fullest by taking whatever Ceiling Price Regulation 17 Supplementary Regulation 10 JUNE 30, 1952 steps are necessary to insure an adequate pro¬ duction and equitable distribution of fuel oil during this coming winter. I am also writing the Maritime Administration and asking them to study the developing situation with respect to the supply of tankers, and to take such actions as are necessary to assure ade¬ quate tankers to move oil to the east coast in the necessary volume this winter. Sincerely yours, John R. Steelman. Based on the foregoing, this supple¬ mentary regulation to Ceiling Price Reg¬ ulation 17 is issued. As already indi¬ cated, the principal middle distillate fuel is No. 2 heating oil, and therefore No. 2 is used in this supplementary regulation as the basis for pricing of the other dis¬ tillates, retaining the customary price relationships between products prevalent in the industry. Similarly, in setting the ceilings applicable at Norfolk and areas south of Norfolk, use of a progres¬ sively decreasing factor for costs of transportation is dictated by industry practice, and, consequently, increases proportionately smaller than 0.65 cents are included in the spielled-out ceiling prices for those areas. This, again, maintains the customary price relation¬ ships as between points respectively north and south of Norfolk. REGULATORY PROVISIONS Sec. 1. What this supplementary regulation does. 2. Ceiling prices at East Coast ports. 3. Differentials for other distillate fuel oils. 4. Preservation of discounts and allowances. 5. Applicability of Ceiling Price Regulation 17 provisions. Authority: Sections 1 through 5 issued under sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110, E. O. 10161, Sept. 9, 1950, 15 F. R. 6105, 3 CPR 1950 Supp. Section 1. What this supplementary regulation does. This supplementary regulation establishes specific tank car ceiling prices for kerosene, No. 2 fuel oil and 48/52 Diesel index gas oil f. o. b. refineries and seaboard terminals in cer¬ tain enumerated areas along the East Coast of the United States. For barge and cargo sales in these refinery-tanker terminal areas, minimum discounts off the specific tank car ceiling prices are required, but where, customarily larger discounts were in effect, such customary discounts must be continued. Purchas¬ ers obtaining product from these points may increase their ceiling prices by the amount of the increase of ceiling price permitted their suppliers by this regula¬ tion. In those areas where sellers have customarily based their prices on prices established at East Coast terminal and refinery points, provision for adjustment is also made. Ceiling prices for sales of these products by operators of such terminals or refineries to other than bulk plant operators, and sales by bulk plant GPO—ESA 2616—p. 1 81 Trans 34:1022 operators who receive product from these terminals or refineries, may be increased by an additional 0.15 cents per gallon. Sec. 2. Ceiling prices at East Coast ports—(a) Tank car ceiling prices to resellers. The ceiling prices for kero¬ sene, No. 2 fuel oil and 48/52 Diesel index gas oil f. o. b. seaboard terminals or refineries for tank car or transport truck delivery for sale to resellers shall be as follows at the enumerated points below: Location Kerosene (cents per gallon) No. 2 fuel oil (cents per gallon) Searsport and Bucksport, Maine..... 11.75 10.75 Portland, Maine.-..- .. 11.05 10.05 Portsmouth, N. H.. 11.55 10.55 Everett, Mass.. 10.95 9.95 Boston, Mass.... 10.95 9. 95 Fall River, Mass- 10.95 9.95 Tiverton, R. I- - 10.95 9.95 Providence, R. I-. .. 10.95 9.95 New London, Conn..; . 11.35 10.45 New Haven, Conn... 10. 95 9.95 Bridgeport, Conn... 10.95 9.95 Albany, N. Y. 11.05 10.05 New York, N. Y... 10.75 9.75 Philadelphia, Pa.. 10.85 9.85 Baltimore, Md.-- --- - 10.85 9.85 Norfolk, Va___ 10. 75 9. 75 Morehead City, N. C- 10.9 9.9 Wilmington, N. C.- 10.9 9.9 Charleston, 8. C... 10.9 9.9 Savannah, Qa-- 11.45 48/52 Diesel index gas oil 10.45 Jacksonville, Fla... 11.4 10.4 Miami, Fla__ 11.5 10.5 Port Everglades. Fla... 11.5 10.5 Tampa, Fla.. 11.15 10.25 Port Tampa, Fla.. 11.15 10.25 (b) F. o. b. barge ceiling prices to re¬ sellers. If delivery is into barges, the ceiling prices set forth in paragraph (a) of |his section shall be reduced by the amount of the seller’s customary differ¬ ential under tank car prices, but in no case shall this differential be less than 0.1 cents per gallon. (c) Delivered cargo ceiling prices to resellers. If delivery is by tank steamer into buyer’s terminal, the ceiling prices established in paragraph (a) of this sec¬ tion shall be reduced by the amount of the seller’s customary differential under tank car prices, but in no case shall this differential be less than 0.55 cents per gallon. (d) Other ceiling prices. (1) Ceiling prices of resellers for these products ob¬ tained from such terminals and refin¬ eries may be increased by the amount of increase permitted their suppliers by this regulation. (2) To the ceiling prices set forth in sections 2 (a), (b) and (c), 0.15 cents per gallon may be added for sales of these products by operators of such terminals or refineries to other than bulk plant operators, and for sales by bulk plant operators who receive product from these terminals or refineries. This 0.15 cents per gallon increase may not be applied on sales at the tank car or transport truck level. In no case may the price to the ultimate consumer be increased more than the amount of the adjustment pro¬ vided for in the appropriate ceiling price set forth in paragraph (a) of this sec¬ tion, plus 0.15 cents per gallon. (31 On sales at any point where the seller's price for these products was cus¬ tomarily based upon me selling price at a point named in paragraph (a) of this section, the ceiling prices may be increased by the amount of the adjust¬ ment contained in the appropriate ceil¬ ing price established under this regu¬ lation irrespective of the origin of the product. Sec. 3. Differentials lor other distillate fuel oils. Any seller who during the base period maintained a customary differ¬ ential between either kerosene or No. 2 heating oil and other distillate fuel oils, such as Diesel fuel. No. 1 heating oil, No. 3 heating oil, distillate No. 4 oil, and gas house gas oil may determine ceiling prices for these products by applying his customary differential to the specific ceiling prices established by this supple¬ mentary regulation. Sec. 4. Preservation of discounts and allowances. All ceiling prices deter¬ mined under this supplementary regula¬ tion shall reflect your customary differ¬ entials, discounts, and allowances in effect during the base period. Sec. 5. Applicability of Ceiling Price Regulation 17 provisions. Sellers subject to this supplementary regulation shall be subject to all the provisions of Ceiling Price Regulation 17 not inconsistent herewith. Effective date. This supplementary regulation shall become effective June 30, 1952. Ellis Arnall, Director of Price Stabilization. Juste 30, 1952. FILE following 81 Trans 34:1202 (7-18-52) 81 Trans 34:1203 Clarifying Amendment Ceiling Price Regulation 17 (Amending Sec. 2) Supplementary Regulation 10 Amendment 1 JULY 18, IMS OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Ceiling Price Regulation 17, Arndt. 1 to Supplementary Regulation 10) CPR17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Gases, Nat¬ ural Gas, Petroleum Gas, Casinghead Gas and Refining Gas SR 10—Specific Ceiling Prices for Mid¬ dle Distillates on the East Coast CLARIFYING AMENDMENT Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161. and Economic Stabilization Agency General Order No. 2, this Amendment to Supplementary Regula¬ tion 10 to Celling Price Regulation 17 is hereby issued. STATEMENT OP CONSIDERATIONS Supplementary Regulation 10 to Ceil¬ ing Price Regulation 17, establishing specific ceiling prices for No. 2 heating oil at certain East Coast points, per¬ mitted 0.15 cents per gallon to be added to the specific ceilings on all sales other than to bulk plant operators. The in¬ tention . was to allow addition of this 0.15 cents in those instances where the seaboard terminal or refinery makes any sales direct to consumers. This was plainly set forth in the Statement of Considerations as well as in section 1 of the supplementary regulation. How¬ ever, because of certain language con¬ tained in section 2 (d) (2), some sellers have raised the question whether the 0.15 cents may be added on consumer tank-car sales as described above. To remove any doubt or possible ambi¬ guity, this amendment rewords section 2 (d) (2) so as to make it clear that the 0.15 cents may be added on any sales to consumers, but that the 0.15 cents may not be added by refinery of terminal operators on sales to bulk plant oper¬ ators, nor by bulk plant operators on sales to other bulk Diant operators. AMENDATORY PROVISIONS Section 2 (d) (2) of Supplementary Regulation 10 to Ceiling Price Regula¬ tion 17 is amended to read as follows: (2) To the ceiling prices set forth in sections 2 (a), (b) and (c), 0.15 cents per gallon may be added by operators of such terminals or refineries and by bulk plant operators receiving product from these terminals or refineries, when making sales of these products to other than bulk plant operators, including consumers. In no case may the price to the ultimate consumer be increased more than the amount of the adjustment provided for in the appropriate celling price set forth In paragraph (a) of this section, plus 0.15 cents per gallon. (Sec. 704,04 8tat. 810, as amended;' 6017.8. C. App. Sup. 2164) Effective date. This amendment Is effective July 18,1962. Ellis Arnaix, Director of Price Stabilization. July 18, 1952. 7 ' . . ' » ■. ; ' Sc :| • v y ' . ( ' ■ . * ;; - • •- ■ • ' -v ■ i ’ . ' • • •• • ... . . ■. . • . - ■ V-. ' ‘ -< ■ •• • ■ , ■ - ■ • l 1 * . » . ' • . •• • • • A I . • . ■ . ' r| FILE following 81 Trans 34:1203 (11-14-52) 81 Trans 34:1252.1 INTERPRETATIONS CPR 17, SR 10, Sec. 2 DETERMINATION OF PRICES AT TANK CAR AND OTHER LEVELS "Tank car and transport truck deliveries, " explained TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 17, Supplementary Regulation 10, Interpretation 11 CPR 17—Gasolines, Naphthas, Fuel Oils and Liquified Petroleum Prod¬ ucts, Natural Gas, Petroleum Gas, Casinghead Gas and Refinery Gas SR 10—Specific Ceiling Prices for Middle Distillates on the East Coast INT. 1-DETERMINATION OF PRICES AT TANK CAR AND OTHER LEVELS (SECTION 2) Several questions have been raised as to the proper interpretation of the pric¬ ing provisions of Supplementary Regu¬ lation 10 to Ceiling Price Regulation 17. Section 2 (a) of SR 10 establishes ceil¬ ing prices at East Coast ports for tank car or transport truck delivery for sale to resellers. The phrase “tank car or transport truck deliveries” refers to the level of sales as distinguished from the method of delivery. While the method of delivery is ordinarily determinative of the level of sale it is not necessarily so. Section 2(d) (2) permits the addition to the ceiling prices set forth in sections 2 (a), (b), and (c) of 0.15 cents per gallon on sales by operators of terminals or re¬ fineries and by bulk plant operators to others than bulk plant operators, but this 0.15 cents per gallon may not be added on sales to resellers at the tank car or trans¬ port truck level. The 0.15 cents per gal¬ lon cannot be added by either a terminal or refinery operator or a bulk plant operator on sales to a dealer who uses bulk storage in the regular conduct of his kerosene and fuel oil business, unless, despite such dealer’s maintenance of storage facilities, his supplier has cus¬ tomarily classified and treated him from the standpoint of price as a purchaser at the tank wagon level as distinguished from a purchaser at the tank car or transport truck level. If the dealer’s bulk plant is not used or is used for other purposes than storage and distribution he is not a bulk plant operator and may be charged the 0.15 cents per gallon. Section 4 of Supplementary Regula¬ tion 10 requires the preservation of cus¬ tomary differentials, discounts and al¬ lowances in effect during the base period. If the ceiling price established under SR 10 properly includes the 0.15 cents per gallon allowable on sales to other than bulk plant operators, customary differ¬ entials, discounts and allowances must be made from that ceiling price. For ex¬ ample, if a reseller not operating a bulk plant and not taking in tank car or transport truck lots has customarily bought on the basis of tank car prices his supplier may add the 0.15 cents per gallon to his price. However, having done so, he must reduce the price by any differentials, discounts or allowances that were customarily granted that re¬ seller. Under section 2 (d) (1) resellers of products obtained from terminals and refineries may raise their prices to ulti¬ mate consumers by the amount of the increase allowable to their suppliers under SR 10 regardless of whether they have actually paid their suppliers that increase. In any case, the ceiling price on any sale to any ultimate consumer is the appropriate, specific ceiling set forth in sections 2 (a), 2 (b) or 2 (c) plus 0.15 cents per gallon. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Herbert N. Maletz, Chief Counsel, Office of Price Stabilization. November 7, 1952. (17 F. R. 10246, Nov. 11, 1952) . FILE following 81 Trans 34:1252.1 (11-14-52) 81 Trans 34 INTERPRETATIONS CPR 17, SR 10, Sec. 4 TERMS AND CONDITIONS OF SALE Customary differentials apply to increased ceiling price (seelnterps. following CPR 17, SR 10, Sec. 2 page 81 Trans 34:1252.1) ■ HJU k* ' . FILE following 81 Trans 34:1201 (7-10-52) 81 Trans 34:1301 Ceiling Prices af West Coast Points for Automotive Gasolines, Kerosene, Diesel Fuels, Furnace and Stove Oils Ceiling Price Regulation 17 Supplementary Regulation 11 JULY 10, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 17, Supplementary Regulation 11] CPR 17—Gasolines, Naphthas, Fuel Oils and Liquefied Petroleum Products, Natural Gas, Petroleum Gas, Casing¬ head Gas and Refinery Gas SR 11—SPECIFIC CEILING PRICES AT WEST COAST POINTS FOR AUTOMOTIVE GASO¬ LINES, KEROSENE, DIESEL FUELS, FURNACE AND STOVE OILS Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended, Executive'Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Supplementary Regulation 11 to Ceiling Price Regulation 17 (16 F. R. 3033), is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation to Ceiling Price Regulation 17 establishes • specific dollars and cents ceiling prices for tank wagon sales of automotive gas¬ olines, kerosene, diesel fuels, furnace oil and stove oil at the majority of bulk plants and areas adjacent to such bulk plants in the States of California, Ore¬ gon, Washington, Arizona, and Nevada. It also establishes specific ceiling prices for bunker grade diesel fuel for delivery by pipe line into barges, or bunker tanks of ocean-going vessels at major bunker¬ ing ports in the States of California, Oregon, and Washington. It is issued to implement the previously announced intent of the Director of Price Stabiliza*. tion to establish specific ceiling prices wherever possible and as quickly as pos¬ sible. Specific ceiling prices are adminis¬ tratively desirable because they are pre¬ cise, easily understood, and readily en¬ forceable. They result in substantial savings in manpower and cost of admin¬ istration to government and to business. They help consumers readily to ascer¬ tain the ceiling prices of products. It is particularly appropriate to take this action in the aforementioned States where the impact of procurement of petroleum products for military use and for the general defense program is re¬ sulting in extreme economic pressures, and where there have been many re¬ quests for the establishment of specific ceiling prices. To determine the specific ceiling prices enumerated in this regulation, the Office of Price Stabilization, with the assist¬ ance of the West Coast Petroleum Wholesale Industry Advisory Commit¬ tee, undertook in June 1951 a survey of the wholesale ceiling prices for se¬ lected products and types of delivery in representative communities. It was an¬ ticipated that, by gathering complete in¬ formation on a substantial portion of the market, data would be secured which could be used as a basis for determining ceiling prices at all bulk plants in the area. For this survey sixty-six com¬ munities were selected oh the basis of population density, geographical and trade area significance, and importance as petroleum distribution points. In furtherance of this survey, Office of Price Stabilization Public Form No. 68 was sent to the Pacific Coast whole¬ sale petroleum marketers doing business at the communities selected. These marketers represented all types of wholesale seller, including refiner-mark¬ eters, brokers, jobbers, purchase and sale distributors, and heating oil dis¬ tributors. The questionnaire asked for information on each product with re¬ spect to ceiling prices; the length of time such ceiling prices had been in effect; the current posted prices of reporting companies; and information on the cur¬ rent "going” prices if such “going” prices applied to more than 50 percent of the sales. Additionally, the marketers were requested to file their current posted prices and ceiling prices for all points where they sold the products surveyed. To permit quantitative analyses of the sales volumes of each product and their relationship to ceiling prices, data a$ to the 1950 sales volumes were requested. The 1,100 reports received covered dis¬ tribution of products of which* 2,041,- 000,000 gallons were gasoline represent¬ ing 42.1 percent of all motor gasoline sold in the five Western States during the year 1950. From the analysis of the replies to the questionnaire it was concluded that the results of the survey were sufficient to establish the ceiling prices spelled out in this regulation. This was accomplished by an intensive review of the prices and sales volumes within the sixty-six points which conclusively indicated that ceiling prices could be spelled out on the basis of representative ceiling prices of cer¬ tain marketers. Thus, the balance of the ceiling prices for all other bulk plant points was arrived at by analysis of the representative ceiling prices of the same marketers. Ceiling prices are spelled out at those points only where evidence collected is adequate and is truly representative of specific ceiling prices. As further infor¬ mation is accumulated action will be taken in spelling out ceiling prices at other points. Since sometime has elapsed between the accumulation of the information and its analysis, the ceiling prices enumer¬ ated do not include permissible trans¬ portation cost increases since Septem¬ ber 1, 1951 but provision is made where¬ by these increases may be added to the specific prices. The Office of Price Sta¬ bilization will issue revised specific ceil¬ ing prices to reflect permissible trans¬ portation cost adjustments as soon as the necessary information is assembled. This supplementary regulation is not in¬ tended to roll back higher existing ceil¬ ing prices which reflect a customary dif¬ ferential over the market price. A pro¬ vision is included to permit a seller hav¬ ing such a ceiling price which is higher than the specific ceiling price enumer¬ ated herein, to apply for the retention of such ceiling price. If such a ceiling is not reflective of a customary differ¬ ential over the market it will be dis¬ approved. The issuance of this supplementary regulation will not result in increases in ceiling prices beyond increases al¬ ready available to sellers under existing regulations. The primary purpose of this.supplementary regulation is to elim¬ inate the difficulties inherent in estab¬ lishing ceiling prices by formula. In the formulation of this supplemen¬ tary regulation there has been consul¬ tation with industry representatives, in¬ cluding trade association representa¬ tives, and consideration has been given to their recommendations. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the prices established by this supplementary regulation are generally fair and equitable and are nec¬ essary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. What this supplementary regulation does. 2. Ceiling prices for motor gasoline, kerosene, premium automotive diesel fuel, regu¬ lar diesel fuel, heating furnace oil and stove oil. 3. Ceiling prices for bunker grade diesel fuel. 4. Ceiling prices higher than specific prices. 5. Applicability of Ceiling Price Regula¬ tion 17. Authority: Sections 1 to 5 issued under sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110, E. O. 10161, Sept. 9. 1950, 16 P. R. 6105, 3 CFR, 1950 Supp. Sec. 1. What this supplementary reg¬ ulation does. This supplementary reg¬ ulation spells out specific ceiling prices at certain bulk plant points located in the States of California, Washington, Oregon, Arizona, and Nevada for tank 81 Trans 34:1302 wagon deliveries of motor gasoline, kero¬ sene, premium automotive diesel fuel (P. S. 100), diesel fuel (P. S. 200), heat¬ ing furnace oil (P. S. 200), and stove oil (P. S. 100). Also spelled out are specific ceiling prices for bunker grade diesel fuel (P. S. 200) at 4 points. These specific prices will be your ceiling prices subject to permissible adjustments made to reflect transportation increases effec¬ tive after September 1, 1951. If your ceiling price prior to the effective date of this regulation was higher than the ceiling price set forth in this regulation, but your prior ceiling price reflects a customary differential over the market, you may apply to the Office of Price Stabilization for permission to retain such a higher ceiling price. Sec. 2. Ceiling prices for motor gaso¬ line, kerosene, premium automotive die¬ sel fuel, regular diesel fuel, heating fur¬ nace oil and stove oil. (a) Your ceil¬ ing prices exclusive of all taxes in cents per gallon for tank wagon deliveries to all consumers and dealers at the points indicated and for the products listed shall be as follows: Location . Gaso¬ line, sec¬ ond grade Kero¬ sene Auto, Diesel Diesel fuel Fur¬ nace oil Stove oil Arizona Aguila. Ajo.... 17.3 22.7 16.0 14.0 14.0 15.5 18. 1 22. 1 15.9 13.9 13.9 15.4 Avondale... 17.3 21.3 16.0 14.0 14.0 15.5 Benson_ 18.3 23.1 16.1 14.1 14.1 15.6 Bis bee_ 17.6 23.4 16.1 14.1 14.1 15.6 Bowie. .. 17.3 26.3 16. 1 14.1 14. 1 15.6 Buckeye.. 17.3 21.3 16.0 14.0 14.0 15.5 Cameron. 19.4 27.7 19.0 17.0 17.0 18.5 Casa Grande... 18. 1 22. 1 16.1 14.1 14. 1 15.6 Chandler. 17.3 21.4 16.0 14.0 14.0 15.5 Clarkdale. 17.7 23. 4 16.0 14.0 14.0 15.5 Claypool_ 18.3 23.2 16.3 14.3 14.3 15.8 Clifton._. 18.3 24.3 16.0 14.0 14.0 15.5 Congress.. 17.3 22.7 16.0 14.0 14.0 15.5 Coolidge_ 18. 1 22. 1 16. 1 •14. 1 14. 1 15.6 Cottonwood_ 17. 7 23.4 16.0 14.0 14.0 15.5 Dateland.. 16.8 21.5 15.6 13.6 13.6 15. 1 Douglas_ 17.4 23. 5 16. 1 14. 1 14.1 15.6 Duncan_ 17.4 27.9 16. 1 14. 1 19. 1 15.6 Flagstaff_ 19.0 23. 1 17.2 15.2 15. 2 16.7 Gila Bend. 17.1 21. 1 15.9 13.9 13.9 15.4 Gilbert... 17.3 21.4 16.0 14.0 14.0 15.5 Glendale_ 17.3 21.3 16.0 14.0 14.0 15.5 Globe.. 18.3 23.2 16.3 14.3 14.3 15.8 Grand Canyon. 19.4 26. 1 17.5 15.5 15.5 17.0 Hayden_ 18.4 22.7 16.3 14.3 14.3 15.8 Holbrook_ 18.4 23.8 17.9 15.9 15.9 17.4 Kingnfan.. 17.4 21.4 15.5 13.5 13. 5 15.0 Kirkland_ 17.7 23.3 16.0 14.0 14.0 15.5 Litchfield_ 17.3 21.3 16.0 14.0 14.0 15.5 Lowell_ 17.6 23. 4 16.1 14. 1 14. 1 15.6 Marana_ 18.1 22. 1 16. 1 14.1 14.1 15. 6 Marinette__ 17.3 21.3 16.0 14.0 14.0 15.5 McNary. 20.0 30.0 18. 1 16.1 16.1 17.6 Mesa... . 17.3 21.3 16.0 14.0 14.0 15.5 Miami__ 18.3 23.2 16.3 14.3 14.3 15.8 Nogales... 19.1 23.0 16.1 14. 1 14. 1 15.6 Parker.. 17.3 21.3 15.4 13.4 13.4 14.9 Patagonia. 19.2 26.3 16. 1 14.1 14.1 15.6 Peach Springs.. 17.7 23.4 15.5 13.5 13.5 15.0 Phoenix.. 17.3 21.3 15.9 13.9 13.9 15.4 Prescott... _ 17. 7 23.4 16.0 14.0 14.0 15.5 Ray..... 18.4 22.7 16.4 14. 4 14.4 15.9 Safford_ . . 18.3 26.3 16. 1 14. 1 14. 1 15.6 Salome_ . 17.3 22. 7 16.0 14.0 14.0 15.5 Ran Carlos_ 18.3 23.4 16.3 14.3 14.3 15.8 Sanders_ 19.0 28. 7 18.1 16.1 16. 1 17.6 Scligman_ . 17.8 23.4 16.1 14.1 14. 1 15.6 Show Low_ 20.0 30.0 18.1 16. 1 16.1 17.6 Springcrville... 20.5 26.8 20.8’ 18.8 18.8 20.3 Superior_ 18.4 25.2 16.3 14.3 14.3 15.8 Tombstone_ 18.3 25. / 16. 1 14.1 14. 1 15.6 Tucson_ 18. 1 22.1 16. 1 14. 1 14. 1 15.6 Warren.. 17.6 23.4 16.1 14. 1 14. 1 15.6 Wellton. 16.8 21.5 15.6 13.6 13.6 15. 1 Wickenburg... 17.3 22.7 16.0 14.0 14.0 15.5 Wilcox.. 17.6 25.9 16. 1 14.1 14.1 15.6 Williams_ 18.9 25.0 17.2 15.2 15.2 16.7 Winslow.. 18.8 23.4 17.7 15.7 15.7 17.2 Yuma. 16.0 20.0 14.8 12.8 12.8 14.3 Location 3aso- line, sec¬ ond ;rade Kero¬ sene AutoJ Diesel Diesel fuel Fur¬ nace oil Stove oil California Alhambra. ■14.0 18.0 12.4 10.4 10.4 11.9 Alturas_ 18.2 24.0 16.4 14.4 14.4 15.9 Alvarado_ 14.6 19.0 13.4 11.4 11.4 12.9 Amboy... 16.9 20.3 14.7 12.7 12.7 14.2 Anaheim_ 14.0 18.3 12.4 10.4 10.4 11.9 Angels_ 16.4 20.9 14.2 12.2 12.2 13.7 Arbuckle. _ 15.7 19.9 14.5 12.5 12. 5 14.0 Areata_ ... 16.4 21.8 13.8 11.8 11.8 13.3 Artcsia_ ... 14.0 18.6 12.4 10.4 10.4 11.9 Arvin_ 14.8 18.8 13. 1 11. 1 11.1 12.6 A tascadero. 16.2 20.9 14.7 12.7 12.7 14.2 Atlantic (Compton)... 14.0 18.0 12.4 10.4 10.4 11.9 Auberry_ 16. 2 22.4 14.4 12.4 12.4 13.9 Auburn_ 16.2 20. 1 14.4 12.4 12.4 13.9 Avalon_ 16.0 * 20.0 14.4 12.4 12.4 13.9 Avila_ 16.4 20 9 14.8 12.8 12.8 14.3 Azusa. 14.5 18.4 12.8 10.8 10.8 12.3 Baker.. 16.8 20.8 14.5 12. 5 12.5 14.0 Bakersfield_ 14.5 18.6 12.9 10.9 10.9 12.4 Balboa.. 14.0 18.7 12.4 10.4 10.4 11.9 Banning_ 15.3 19.2 13.6 11.6 11.6 13.1 Barstow_ 15.9 19.9 13.7 11.7 11.7 13.2 Bass Lake. 16.9 22.9 15.0 13.0 13.0 14.5 Beaumont. 15.3 19.2 13.6 11.6 11.6 13.1 Bieber_ 18. 2 23.6 16. 4 14.4 14.4 15.9 Big Bear. 15.7 21.4 13.9 11.9 11.9 13.4 Biola.. 15.7 19.8 13.8 11.8 11.8 13.3 Bishop... 17.5 24.3 15.9 13.9 13.9 15.4 Blythe.. 17. 1 21.1 14.8 12.8 12.8 14.3 Bradley. 16.3 20. 7 14.7 12.7 12.7 14.2 Brawley.. 16.7 20.6 15.1 13. 1 13. 1 14.6 Brea_ _ 14.0 18.5 12.4 10.4 10.4 11.9 Brentwood_ 15.1 19.4 13.5 11.5 11.5 13.0 Buellton_ 16. 2 20.3 14.6 12.6 12.6 14.1 Burbank. 14.0 18.0 12.4 10.4 10.4 11.9 Byron.. 15.1 19.4 13.5 11.5 11.5 13.0 Calexico. 16.7 20.8 15.1 13.1 13.1 14.6 Calipatria . . 16 7 20.6 15. 1 13.1 13.1 14.6 Calistoga_ 15.3 19. 2 13.6 11.6 11.6 13.1 Camarillo. 15.2 19.2 13.4 11.4 11.4 12.9 Cambria_ 16.6 22.3 15.0 13.0 13.0 14.5 Canoga Park... 14.0 18.0 12.4 10.4 10.4 11.9 Capistrano Beach. .. 14.0 18.9 12.9 10.9 10.9 12.4 Cedar ville_ 18.6 24. 2 16 4 14.4 14.4 15.9 Centerville. 15.2 19.3 13.4 11.4 11.4 12.9 Chico__ 16.6 20.5 14.8 12.8 12.8 14.3 Chowehilla_ 15.7 20.0 1.3.8 11.8 11.8 13.3 Chula Vista_ 15.0 19.6 13.2 11.0 11.0 12. 7 Clarksburg. 15.7 20.1 14.3 12.3 12.3 13.8 Clear Creek_ 15.2 19. 4 13.6 11.6 11.6 13. 1 Clearlake High¬ lands... 15.9 20 3, 14.4 12.4 12.4 13.9 Cloverdale. 15.8 20. 2 14.3 12.3 12.3 13. 8 Clovis.. . 15 7 10.8 13.8 11.8 11.8 13.3 Coachella. 15.9 19.8 14.2 12.2 12. 2 13.7 Coalinga_ 15.7 19.8 13.8 11.8 11.8 13.3 Coarse Gold_ 16.4 22.4 14.7 12.7 12.7 14.2 Colfax.. 16. 5 20.7 14.7 12.7 12.7 14.2 Colton.. 14.8 18.8 13.0 11.0 11.0 12.5 Colusa_ 16.2 20. 1 14.4 12.4 12.4 13.9 Concord_ 14. 5 18.5 12.9 10.9 10.9 12.4 Corning . 16.6 20.5 15.0 13.0 13.0 14.5 Corona_ 14.6 18.6 13. 1 11. 1 11. 1 12.6 Corcoran_ 15.7 19.8 13.8 11.8 11.8 13.3 Costa Mesa_ 14.0 18.7 12.4 10.4 10.4 11.9 Courtland_ 15.7 19.8 13.8 11.8 11.8 13.3 Covelo.. .1_ 17. 5 21.3 15.9 13.9 13.9 15.4 Covina_ 14. 5 18.4 12.8 10.8 10.8 12.3 Crescent City . 17.8 21.8 15.6 13.6 13.6 15. 1 Crescent Mills.. 17.6 22. 2 16.0 14.0 14.0 15. 5 Crestline_ 15.3 19.2 13.9 11.9 11.9 13.4 Culver City_ 14.0 18.0 12.4 10.4 10.4 11.9 Davis. .. 15.7 19.8 14.0 12.0 12.0 13.5 Delano... 15.0 19. 1 13.3 11.3 11.3 12.8 Desert Center.. 16.4 20.8 14.7 12.7 12.7 14.2 Dinuba_ 15.7 20.8 13.8 11.8 11.8 13.3 Dixon... 15.7 19.8 13. 7 11.7 11.7 13.2 Dorris_ 18.5 24.5 16.4 14.4 14.4 15. 9 Dos Palos. 15.7 19.8 1.3.8 11.8 11.8 13.3 Downey. 14.0 18.0 12.4 10 4 10.4 11.9 Dunnigan_ 15.7 19.9 14. 2 12.2 12.2 13.7 East Gridlcy... 16.2 20.4 14.6 12.6 12.6 14.1 El Cajon. 15.0 19.6 13. 2 11.0 11.0 12.7 El Centro. 16.7 20.8 15. 1 13. 1 13. 1 14.6 Elk Grove...... 15. 7 19.8 14. 1 12. 1 12. 1 13.6 El Monte.. 14.0 18.0 12.4 10.4 10.4 11.9 El Poital_ 17. 1 21.3 15. 2 13. 2 13.2 14.7 El Segundo_ 14.0 18.0 12.4 10.4 10.4 11 9 Elsinore_ 15. 2 18.8 13. 2 11. 2 11.2 12.7 E seal on_ 15.7 19.8 13.8 11.8 11.8 13.3 Escondido_ 15.4 19.4 13. 6 11. 6 11.6 13.1 Esparto_ 15. 7 19.8 14.0 12.0 12.0 13.5 Eureka_ 16.4 20. 4 13.8 118 11.8 13.3 Fairfield_ 15. 1 19. 1 13.7 11.7 11.7 13.2 Fallbrook_ 15.4 19 4 13.6 11. 6 11. 6 13. 1 Fall River Mills_ 18. 1 23. 6 16. 4 14.4 14. 4 15.9 Farmington_ 15. 7 19.8 13.8 11. 8 11.8 13.3 Feather Falls 16. 9 21.3 15.3 13.3 13.3 14.8 Fields Landing. 16.4 20.4 13.8 11.8 11.8 13.3 Location Gaso¬ line. sec¬ ond grade Kero¬ sene Auto, Diesel Diesel fuel Fur¬ nace oil Stove oil California—Con. Fillmore.. 15 2 IP. 2 13.4 11.4 11.4 12. 9 Firebaugh. 15.7 19.8 13.8 11.8 11 8 13.3 Fish Harbor_ 14.0 18.0 12.4 10.4 10.4 11.9 Folsom_ 16 2 19.9 14.4 12.4 12.4 13.9 Fort Bragg_ 17.2 21.2 15.8 13.8 13.8 15.3 Fort Jones...... 18.2 22.2 16.8 14. 8 14.8 16.3 Fortuna.. 16. 6 22.0 14.3 12.3 12.3 13.8 Fowler. 15.7 20. 6 14.0 12.0 12.0 13. 5 Fresno__ 15. 7 19.8 13.8 11.8 11.8 13.3 Fullerton_ . 14.0 18. 5 12.4 10.4 10.4 11.9 Oarberville_ 17.1 22.3 14.7 12.7 12.7 14.2 Gevserville_ 15.3 19.9 13.9 11.9 11.9 13 4 Gilroy. 15.7 19.4 13 8 11.8 11.8 13.3 Gonzales. 16.4 19.8 14.6 12.6 12.6 14. 1 Glendale- 14.0 18.0 12.4 10.4 10.4 11.9 Gorman_ 15.4 19.4 13.6 11.6 11.6 13.1 Grapevine.. Grass Valley... 15.4 16.5 19. 2 20.3 13.6 15.0 11.6 13.0 11.6 13.0 13. 1 14.5 Oridley. 16.2 20.4 14.6 12.6 12.6 14.1 Groveland. 17.8 21.6 15.6 13.6 13.6 15.1 Guemeville. 15.3 19. 5 14.2 12.2 12.2 13.7 Half Moon Bay. 15.5 19.4 13.9 11.9 11.9 13.4 Hanford_ 15.7 19.8 13.8 11.8 11.8 13.3 Hayward_ 14.6 19.0 13.4 11.4 11.4 12.9 Healdsburg_ 15.3 19.9 13.9 11.9 11.9 13.4 Henet. 15.3 19.2 13.4 11.4 11.4 12.9 Hollister_ 15.9 19.5 14. 1 12. 1 12. 1 13.6 Hollywood_ 14.0 18.0 12.4 10.4 10.4 11.9 Holt ville... 16.7 20.8 15. 1 13. 1 13. 1 14.6 Hoopa.. 17.8 21.8 15.6 13.6 13.6 15. 1 Huntington Beach_ 14.0 18.0 12.4 10.4 10.4 11.9 Huntington Park.. 14.0 18.0 12.4 10.4 10.4 11.9 Hyde Park_ 14.0 18.0 12.4 10.4 10.4 11.9 Indio... 15.9 19.8 14.2 12.2 12.2 13.7 Inglewood_ 14.0 18.0 12.4 10.4 10.4 11.9 Inyokem. 16. 1 20.1 14.4 12.4 12.4 13.9 lone.. 16.2 20.6 14.2 12.2 12.2 13.7 Irvine. 14.0 18.3 12.4 10.4 10.4 11.9 Irvington... 15.2 19.3 13.4 11.4 11.4 12.9 Jackson. 16.2 20.6 14.2 12.2 12.2 13.7 Jacumba... 16.6 21.1 14.5 12.5 12.5 14.0 Jamestown_ 16.4 20.4 14.8 12.8 12.8 14.3 Johannesburg.. 16. 1 19.8 14.4 12.4 12.4 13.9 Julian. 16.2 19.9 14.6 12.6 12.6 14.1 Kern ville.. 15.5 21.7 14.0 12.0 12.0 13.5 Kettleman Hills_ 15.7 19.8 14.1 12.1 12.1 13.6 King City. 16.6 20.1 14.7 12.7 12.7 14.2 Kingsburg. 15.7 20.8 13.8 11.8 11.8 13.3 Knights Land¬ ing. 15.7 19.9 14.1 12.1 12.1 13.6 Lake Arrow¬ head ... _ 15.3 19.2 13.9 11.9 11.9 13.4 Lakcport. 16.3 20.1 14.7 12.7 12.7 14.2 Lakeside. 15.0 19.6 13.2 11.0 11.0 12.7 La Mesa.. 15.0 19.6 13.2 11.0 11.0 12.7 Lancaster. 15.4 19.2 13.6 11.6 11.6 13. 1 Laws.... 17.5 24.3 15.9 13.9 13.9 15.4 Lvmoore. 15.7 19.8 13.8 11.8 11.8 13.3 Lcevining. 18.2 25.2 16.7 14.7 14.7 16.2 Lincoln.. 16.1 19.9 14.3 12.3 12.3 13.8 Linden.. 15.7 19.8 13.8 11.8 11.8 13.3 Litchfield. 17.9 22.7 16.3 14.3 14.3 15.8 Lindsay_ 15.7 21.1 13.8 11.8 11.8 13.3 Livermore_ 15.2 19.2 13.5 11.5 11.6 13.0 Livingston_ 15.7 19.8 13.8 11.8 11.8 13.3 Lodi_ 15.7 19.8 13.8 11.8 11.8 13.3 Lompoc. 16.2 19.9 14.6 12.6 12.6 14.1 Long Beach_ 14.0 18.0 12.4 10.4 10.4 11.9 Lone Pine_ 16.9 21.8 15.2 13.2 13.2 14.7 Los Angeles_ 14.0 18.0 12.4 10.4 10.4 11.9 Los Gatos. 15.3 19.5 13.6 11.6 11.6 13.1 Ix)s Banos.. 15.7 19.8 13.8 11.8 11.8 13.3 Los Molinos_ 16.9 20.9 15.0 13.0 13.0 14.5 Los Olivos. 16.2 20.3 14.6 12.6 12.6 14.1 Lower Lake_ 15.9 20.3 14.4 12.4 12.4 13.9 Loyalton. 17.8 22.3 15.8 13.8 .13.8 15.3 Ludlow _ . 16.4 20.3 14.6 12.6 12.6 14. 1 Mac Doel_ 18.5 24.5 16.4 14.4 14.4 15.9 Madera._ 15.7 19.8 13.8 11.8 11.8 13.3 Manteca... 15.7 19.8 13.8 11.8 11.8 13.3 Mariposa_ 16.6 21.3 15.5 13.5 13.5 15.0 Martinez.. 14.5 18.5 12.9 10.9 10.9 12.4 Marysville._ 16. 1 20. 1 14.4 12.4 12.4 13.9 Maxwell_ 16.2 20. 1 14.4 12.4 12.4 13.9 McCloud_ 18. 1 23.2 16.4 14.4 14.4 15.9 McKittrick_ 15.0 20.4 13.3 11.3 11.3 12.8 Mendota_ 15.7 19.8 13.8 11.8 11.8 13.3 Merced_ 15.7 19.8 13.8 11.8 11.8 13.3 Meridian. 16. 2 20. 1 14.4 12.4 12.4 13.9 Middletown_ 15.7 20.0 14. 1 12. 1 12. I 13.6 Modesto. _ 15.7 19.8 13.8 11.8 11.8 13.3 Mojave.... 15.5 19.6 13.7 11.7 11.7 13.2 Monrovia_ 14.3 18.3 12.8 10.8 10.8 12.3 Monterey_ 16. 1 20. 1 14.4 12.4 12.4 13.9 Moorpark_ 15.2 19.0 13.4 11.4 11.4 12.9 Morgan Hill_ 15. 7 19.4 13.8 11.8 11.8 13.3 Moss Landing.. 16. 2 20.3 14. 1 12. 1 12. 1 13.6 Mountain View. 15.3 19.3 13.4 11.4 11.4 12.9 Mount Shasta.. 18. 1 22.9 16.4 14.4 14.4 15.9 81 Trans 34:1303 Location Gaso¬ line, sec¬ ond grade Kero- 5ene Auto, Diesel Diesel fuel Fur¬ nace oil Stove oil Location Oaso- line. sec¬ ond grade Kero¬ sene Auto, Diesel Diesel fuel Fur¬ nace oil Stove oil locution Qaso- line, sec¬ ond grade Kero¬ sene Auto. Diesel Diese fuel Fur¬ nace oil Stove oil California— Con. California—Con. Oregon— Con. 15. 0 19.0 13.4 11. 4 11.4 12.9 Tracy. 15.7 19.8 13.8 11.8 ns 13.3 Corvallis_ 16.0 21.9 14.6 12.6 16. 1 19. 9 14. 4 12. 4 12. 4 13.0 Tranquillity.... 15.7 19.8 13.8 11.8 11.8 13.3 Cottage Grove. 16.7 22.9 15.5 13.5 17 5 22 5 15, 3 13. 3 13. 3 14 8 Trona 16.5 21. 4 14.2 12.2 12.2 13.7 Crescent. 17.9 24. 4 17.0 15.0 14. 4 18. 6 ’ 12.8 10.8 10.8 12. 3 Trowbridge_ 16.1 20.2 14.3 12.3 12.3 13.8 Cushman_ 17.8 24 4 15.6 13.6 15. 7 19 8 13 8 11.8 11 8 13 3 Truckee 17.3 21. 7 15. 7 13.7 13.7 15.2 Dallas__ 15.7 21. 5 14.3 12.3 14 0 18. 7 12 4 10. 4 10. 4 11. 0 Tudor 16.1 20. 2 14. 3 12.3 12.3 13.8 De Lake. 16.8 24.3 15. 2 13.2 14.0 18. 6 12. 4 10. 4 10. 4 11. 0 Tulare 15. 7 19. 8 13.8 11.8 11.8 13.3 Drain. 16. 7 22. 9 15. 5 13. 5 15. 7 19. 8 13.8 11.8 11.8 13.3 Tule Lake.__ 18.3 23.5 16.4 14.4 14.4 15.9 Elgin.. . 17.2 26. 4 16.2 14. 2 Oakland .. .. 14. 5 18. 5 12.9 10.9 10.9 12. 4 Turlock 15.7 19.8 13.8 11.8 11.8 13.3 Enterprise_ 17.7 27. 1 16.9 14.9 15. 1 19.0 13.5 11.5 11. 5 13.0 20 Palms. „ 16. 1 20. 1 14. 4 12.4 12. 4 13.9 Estacada_ 15.5 21.0 14.0 12.0 Ojai . 15.2 19.2 13.4 11.4 11.4 12.9 Ukiah 16. 2 20. 1 14.3 12.3 12.3 13.8 Eugene.. 16.6 22. 1 15.1 13. 1 Oleum . 14.5 18.5 12.9 10.9 10.9 12.4 Vacaville . . 15. 7 19.8 13. 7 11. 7 11.7 13.2 Florence. 17.8 24. 4 15.6 13.6 Ontario . 14. 6 18.6 12.9 10.9 10.9 12. 4 Vallejo 15.0 18.8 13. 4 11. 4 11. 4 12.9 Fossil.. 17. 4 25.4 16.3 14.3 Orick . 17.4 22.7 14.9 12.9 12.9 14.4 Van Nuys. .. . 14.0 18. 0 12. 4 10.4 10.4 11.9 Freewater_ 16.7 25.0 15.5 13. 5 Oriand. 16.6 20. 4 14.8 12.8 12.8 14.3 Ventura 15.2 19.2 13. 4 11.4 11.4 12.9 Garibaldi_ 16.4 22.5 14.8 12. 8 Oroville. 16.4 20.4 14.6 12.6 12.6 14. 1 Victorville. 15. 4 19. 4 13. 2 11.2 11.2 12. 7 Gates. 15.7 21. 5 14.3 12.3 Oxnard . 15.2 18.9 13.4 11. 4 11.4 12. 9 Visalia 15. 7 20.9 13. 8 11. 8 11.8 13.3 Glendale_ 17.0 23.2 15.8 13.8 Palm City. 15.0 19.6 13.2 11.0 11.0 12. 7 Walnut Creek.. 14. 5 18. 5 12.9 10.9 10.9 12. 4 Gold Beach.... 18. 1 25. 7 16. 5 14. 5 Palo Alto _ 14.8 19.3 13.3 11.3 11.3 12.8 Walnut Grove.. 15.7 19.8 13.8 11.8 11.8 13.3 Grants Pass_ 17.4 23.0 16.4 14.4 Parlier . 15.7 20.6 13.8 11.8 11. 8 13.3 Wasco 15.0 19. 1 13.3 11.3 11.3 12.8 Grass Valley_ 16.6 23.7 15. 4 13. 4 Pasadena . 14.0 18.0 12.4 10.4 10.4 11.9 Waterford 15. 7 19 8 13.8 11. 8 11.8 13.3 Gresham. 15.0 20 5 13. 5 11. 5 Paso Robles..-- 16.2 21.3 14.7 12.7 12.7 14.2 Watsonville.... 16.1 19.9 14.0 12.0 12.0 13.5 Harrisburg_ 16.6 22. 5 14.9 12.9 Patterson. 15. 7 19.8 13.8 11.8 11.8 13.3 Watts 14.0 18.0 12. 4 10. 4 10. 4 11. 9 He bo_ 16. 4 23. 1 14.9 12. 9 Pescadero. 16.0 21.4 14.3 12.3 12.3 13.8 17.8 21. 5 16. 2 14. 2 14. 2 15. 7 Heppner. 16. 7 24 4 15. 5 13. 5 Petaluma. 15.3 19. 1 13.7 11.7 11.7 13.2 Weed 18.1 22.9 16. 4 14. 4 14. 4 15.9 Hermiston_ 16. 7 24. 6 15. 3 13. 3 Pittsburg. 14.9 18.9 13.3 11.3 11.3 12.8 15. 7 19. 8 13 8 11 8 11.8 13.3 Hillsboro_ 15 3 20 9 13. 9 11 9 Pixley. 15. 1 19.2 13.6 11.6 11.6 13. 1 16. 7 20 6 15 1 13 1 13.1 14.6 H ines. 19. 1 28 9 18. 7 16 7 Placerville. 16.4 20.4 14 5 12.5 12.5 14.0 Westwood.. 17.9 22. 7 16. 3 14.3 14. 3 15.8 Hood River. .. 16. 1 22. 5 14. 5 12.5 Plymouth. 16.2 20.6 14.2 12.2 12.2 13.7 14.0 18.0 12. 4 10. 4 10. 4 11.9 Huntington 18 2 27 8 17 8 15 8 Pt. Arena. 17.2 21.5 15.6 13.6 13.6 15.1 Williams 16.2 20.2 14. 5 12.5 12.5 14.0 Independence.. 15. 7 21. 5 14. 3 12. 3 Pt. Loma_ 15.0 19.0 13.2 11.0 11.0 12.7 Willits 16. 6 20. 5 15 0 13.0 13.0 14. 5 lone _ ... 16 7 24 3 15. 6 13. 6 Pt. Reyes. 15.4 19.9 13.8 11.8 11.8 13.3 Willows 16. 4 20. 2 14. 5 12. 5 12. 5 14.0 John Day_ 19.0 29. 1 17. 7 15. 7 Pomona. 14.6 18.6 12.9 10.9 10.9 12.4 17 8 21 8 15 6 13 6 13 6 15. 1 Jordan Valley.. 18. 5 29 9 19. 2 17. 2 Porterville_ 15.7 19.8 13.8 11.8 11.8 13.3 14 0 18 0 12 4 10 4 10 4 11 9 Joseph. 17 7 27 1 16 9 14 9 Portola_ 17.9 22.3 15.8 13.8 13.8 15.3 15 7 19. 8 13 7 11 7 11 7 13. 2 Junction City.. 16 6 22. 5 15. 1 13. 1 Quincy. 17.6 22.2 15.9 13.9 13.9 15.4 15 7 20 9 13 8 11. 8 11 8 13. 3 Juntura........ 18.6 29. 2 18. 5 16. 5 Ramona. 15.7 19.4 14.1 12.1 12.1 13.6 15 7 19 8 14 0 12 0 12 0 13 5 Kendall. 15 0 20 5 13. 5 11. 5 Red Bluff_ 16.9 20.9 15. 1 13. 1 13.1 14.6 14 0 18 5 12 4 10 4 10 4 11 9 Kent 16 6 23 7 15 4 13 4 Redding. 17.3 21.4 15.3 13.3 13.3 14.8 18 2 22. 2 16. 5 14. 5 14. 5 16.0 Klamath Falls.. 18. 2 22.2 16.5 14. 5 14.5 16.0 Redlands. 14. 8 19.0 13. 1 11. 1 11. 1 12.6 16 1 20 1 14 4 12 4 12 4 13 9 La Orande_ 17. 2 26. 4 16. 1 14. 1 Redwood City. 14.8 18.9 13.3 11.3 11.3 12.8 Dunsmuir 18. 1 22.9 16.4 14.4 14.4 15.9 Lakeview_ 18.9 24.7 17.0 15.0 Reedley. 15.7 20.8 13.8 11.8 11.8 13.3 Lebanon. .... 16. 0 21. 9 14.8 12. 8 Richmond. 14.5 18.5 12.9 10.9 10.9 12.4 Nevada Lowell.. . 16.6 22.1 15. 1 13. 1 Rio Vista. 15. 7 19.8 13.8 11.8 11.8 13.3 Madras. 16. 6 24 3 15. 4 13. 4 Riverdale. 15.7 19.8 13.8 11.8 11.8 13.3 20. 1 26.9 19.2 17.2 17.2 18. 7 Maupin_ 16. 8 23. 8 15. 4 13.4 Riverside. 14.8 18. 7 13.0 11.0 11.0 12.5 McMinnville... 15. 5 21. 5 14. 3 12.3 Robbins.... 15.7 19.9 14.1 12.1 12. 1 13.6 tain. . 19.0 26.9 17.5 15.5 15.5 17.0 Medford. 17.8 21.8 16.5 14. 5 14.5 16.0 Rocklin. 16. 1 19.8 14.3 12.3 12.3 13.8 18 9 25 5 17 0 15 0 15 0 16 5 Merrill. 18. 2 23 5 16. 5 14. 5 Roseville . 16. 1 19.8 14.3 12.3 12.3 13.8 17 8 ?2 0 15 8 13 8 13 8 15 8 Milton. 16. 7 25 0 15. 5 13. 5 Running 10 0 26 0 16 5 14 5 14 5 15.9 Molalla. 15.6 21.4 14.0 12.0 Springs. 15. 3 19.2 13.9 li.9 11. 9 13.4 15 3 15 3 16 8 Monroe. 16 5 22 5 14. 9 12. 9 Sacramento_ 15. 7 19.8 14.1 12. 1 12.1 13.6 14 1 14 ] 1 * 6 Moro.. 16 6 23 8 15. 2 13. 2 St. Helena_ 15.3 19.2 13.6 11.6 11.6 13.1 20 6 25 (1 18 4 16 4 16 4 17 9 Mount Vernon. 18.4 27.4 17.6 15.6 Salinas. 16. 1 19. 5 14.4 12.4 12.4 13 9 Elko 19 6 28 4 17 5 15 5 15. 5 17. 0 Myrtle Creek.. 17.0 22.6 15.8 •13.8 San Andreas... 16.2 20.2 14.2 12.2 12.2 13.7 20 n 27 7 19 2 17 2 17 2 18 7 Myrtle Point... 17.5 23.9 15.0 13.0 San Bernardino. 14.8 18.8 13.0 11.0 11.0 12. 5 Newberg.. .. 15. 4 21.1 13.9 11.9 San Diego._ 15.0 19.0 13.2 11.0 11.0 12.7 17 4 22 0 16 3 14 3 14 3 15 8 Newport_ 17.0 23.3 15.2 13.2 San Fernando.. 14.0 18.0 12.4 10.4 10.4 11.9 i8. 2 22. 2 16. 5 14. 5 14.5 16.0 North Bend.... 16.9 22.5 14.4 12.4 __ __ _ _ San Francisco.. 14.5 18. 5 12.9 10.9 10.9 12.4 18. 9 25.3 17.4 15.4 15.4 16.9 North Powder.. 17.6 26.7 16.7 14.7 ___ ...... Sanger. 15.7 20.6 13.8 118 11.8 13.3 V? 13 5 15 ft North Portland 15.0 20.5 13.5 11.5 San Jacinto. 15.3 19.2 13.4 11.4 11.4 12.9 15 (j 1ft ** Nyssa.. 17.7 25.0 18.3 16.3 San Joaquin. .. 15.7 19.8 13.8 11.8 11.8 13.3 19. 5 28. 5 18. 8 16. 8 ir*; 8 18 I Oakland_ 16.7 23.3 15.6 13.6 San Jose. 15.3 19.3 13.4 11.4 11.4 12.9 20.6 19. 4 25.2 26.0 18 4 16 4 16 4 17 9 Oakridge_ 17.0 23.1 15.3 13.3 San Juan Cai>- 17.2 15.2 15.2 16! 7 Ontario.. 17.7 25.0 18.3 16.3 istrano_ 14.6 18.9 12.9 10.9 10.9 12.4 18 8 25 2 17 8 15 8 15 8 '17 3 Oregon City... 15.0 20.6 13.5 11.5 San Luis Obis- 17. 4 24! 3 16. 2 14! 2 14! 2 15.7 Pendleton.. 16.7 24.6 15.5 13.5 po. 16.4 20.9 14.8 12.8 12.8 14.3 18.4 14 2 15 7 Pilot Rock_ 16. 7 25.0 15.5 13.5 San Mateo. 14.5 18.7 13.1 11.1 11. 1 12.6 16 5 14 5 14 5 16 ft Portland_ 15.0 20.5 13.5 11.5 San Pedro. 14.0 18.0 12.4 10.4 10.4 11.9 19 4 28 6 17 3 15 3 15 3 16 8 Prairie City_ 19.0 30.0 17.7 15.7 San Rafael. 15.1 19.1 13.5 11.5 11.6 13.0 19 2 2fi 3 16 5 14 5 14 5 15 3 Prineville_ 17.0 24.4 15.8 13.8 Santa Ana. 14.0 18.3 12.4 10.4 10.4 11.9 17 1 21 1 15 8 13 8 13 8 15 3 Prospect.. 17.8 25.2 16.5 14.5 Santa Barbara.. 15.2 19.2 13.4 11.4 11.4 12.9 33 6 20 1 18 1 18 1 19 6 Rainier.... 15.5 21.7 14. 1 12.1 Santa Cruz. 16. 1 19.9 13.9 11.9 11.9 13.4 mu A 11 1IU_ 20 6 25 2 18 4 16 4 16! 4 17 9 Redmond. 17.0 24.4 15.8 13.8 Santa Maria_ 16.4 20.4 14.8 12.8 12.8 14.3 18 9 2? 9 17 9 15 9 15. 9 17 4 Reeds port. 17.4 24.0 15.1 13.1 Santa Monica.. 14.0 18.0 12.4 10.4 10.4 11.9 WpIIq 19 7 26 3 17 3 15 3 15. 3 16. 8 Riddle . 17.0 22.6 15.8 13.8 Santa Paula 15. 2 19.2 13.4 11.4 11.4 12.9 18 1 25 2 17 0 15 0 15 ft 16 5 Robinette 18. 4 27 6 17.5 15. 5 Santa Rosa_ 15.3 18.9 13.7 11.7 11.7 13.2 Yerington. 18.0 23.7 16.7 14! 7 14.7 16.2 Roseburg. 16.7 22.3 15.6 13.6 13.6 15. 1 Sausalito 15.1 19. 1 13.5 11.5 11.5 13.0 St. Helens__ 15. 4 215 13. 9 11.9 Sebastopol 15.3 19.5 13.7 11.7 11.7 13.2 Salem__ 15. 7 21. 2 14.3 12.3 Seguro. 14. 5 18.6 12.9 10. 9 10.9 12.4 Seaside. 16.0 22.6 14.2 12.2 Shafter. 15.0 19. 1 13.3 11.3 11.3 12.8 16 0 21 9 14 6 12 6 Seneca. 19.7 29.9 19.0 17.0 Shoshone. 17.3 23.8 15.6 13.6 13.6 15.1 16 4 23 7 15 2 13. 2 Sheridan. 15.7 21.5 14.3 12.3 Signal Hill. 14.0 18.0 12.4 10.4 10. 4 11.9 17 8 21 8 16 5 14 5 Silver Lake. 19.3 27. 7 17. 7 15.7 Solana Beach... 15.3 19.3 13.3 11.5 11. 5 13.0 1.*» 5 21 6 13 4 11 4 Silverton. 15.7 21.5 14.3 12.3 Soledad. 16. 4 19.8 14.6 12.6 12.6 14.1 16 7 25.0 15 5 13. 5 Stay ton.. 15.7 21.5 14.3 12.3 Sonoma... 15.3 19.2 13.6 11.6 11.6 13.1 17. 7 26. 7 16. 7 14.7 14. 7 16.2 Sublimity. 15.7 21.5 14.3 12.3 Sonora 16.4 20.4 14.8 12.8 12.8 14.3 17 5 24 4 15 2 13 2 Sutherlin 16.7 22. 3 15.6 13. 6 South Dos Palos 15.7 19.8 13.8 11.8 11.8 13.3 19 6 29. 6 18. 7 16. 7 Taft . 16.8 24.3 15.2 13. 2 South Fork. 17. 1 22.3 14.7 12.7 12.7 14.2 Beaverton. 15.0 20.6 13.5 11.5 The Dalles_ 16.3 23. 1 14.8 12.8 12.8 14.3 South Los An- 17.0 24. 4 15.8 13.8 13.8 15.3 Tillamook 16.4 22. 5 14.8 12.8 geles.. 14.0 13.0 12.4 10.4 10.4 11.9 Bly 18. 9 24.8 17.4 15.4 Toledo 17.0 23.3 15.2 13. 2 South San 18.2 22. 2 16.5 14.5 Union 17. 2 26. 5 16. 2 14. 2 Francisco. 14.5 18. 5 13. 1 11. 1 11. 1 12.6 16.6 22. 5 14 9 12.9 Vale 17 7 28. 4 18. 3 16. 3 Stockton. 15. 7 19.8 13.8 11.8 11.8 13.3 Burns. 19. 4 28.1 18.7 16.7 16.7 18.2 16. 1 22.0 14. 4 12. 4 Stratford 15.7 19.8 13.8 11.8 11.8 13.3 Canby . 15. 4 21.0 13.9 11.9 18 0 25 4 15. 7 13. 7 Suisun 15. 1 19.1 13. 7 11.7 11.7 13.2 18. 2 25.4 16. 4 14.4 17 7 27 1 16 3 14 3 Susanville 17.9 22. 7 16.3 14.3 14.3 15.8 17.9 24.4 17.0 15.0 15 5 21 7 13 4 11 4 'T'aft. 15.0 19 1 13.3 11.3 11.3 12.8 Chiloquin. 18.2 24.3 17.0 15.0 16. 5 23.7 15. 2 13. 2 ihoe City 17.3 22.0 15.6 13.6 13.6 15.1 15.9 21. 7 14 5 12.5 15 7 21 2 14 3 12 3 17.3 22.0 15.6 13.6 13.6 15.1 16. 9 24.3 15. 7 13. 7 15 7 21 5 14 3 12 3 Tehachapi..... 15.4 19.6 13.4 11.4 11.4 12 9 Coos Bay. 16.9 22.5 14.4 12.4 12.4 13.9 Willamina_ 15.7 21.5 14.3 12.3 Terminal Is- Coquille 17. 5 23. 9 15.0 13.0 15 0 2ft 5 13 5 11 5 land. 14.0 18.0 12.4 10.4 10.4 11.9 Cornelius. 15.3 20.9 13.9 11.9 ...... ...... Woodburn_ 15.4 21.1 14.0 12.0 81 Trans 34:1304 Gaso- Location line, sec ond grade Kero- son e Auto, Diesel Diesel fuel Fur¬ nace oil Stove oil Washington Aberdeen_ 15.3 20.8 13.6 11.6 n.6 13. 1 Almira.. 17.7 25.8 16.8 14.8 15 8 21.4 14 1 12. 1 Arlington_ 15.7 21.3 14.4 12.4 Auburn_ 15.0 20.5 13.5 11.5 Bellingham_ 15.9 21.5 14.1 12. 1 12.1 13.6 17. 8 25.3 16.8 14.8 16. 1 22. 5 14.8 12.8 Blaine_ 16.3 22.0 14.5 12.5 __ __ Bremerton_ 15.3 20.8 13.8 11.8 11.8 13.3 17. 7 23. 9 16.8 14.8 15.3 21. 3 14. 1 12. 1 15. 1 20. 7 13.6 11.6 15. 9 21. 5 14.2 12.2 17. 2 23. 4 15.7 13.7 Castle Rock_ 16.0 21.6 14.0 12.0 16 2 22. 1 14. 1 12. 1 16. 2 21.7 14.4 12.4 16. 2 21.7 14.4 12.4 17. 7 23. 9 16.3 14.3 17.8 25. 4 16.8 14.8 18. 6 26. 1 17.7 15.7 17.8 25. 2 17.2 15.2 16. 7 22.7 15.6 13.6 15. 8 22.3 14. 1 12. 1 Clydp 17. 2 24. 2 16. 1 14. 1 Colfax.. 17.8 25.4 17.0 15.0 18. 8 25. 3 17.9 15. 9 Concrete.. 16.3 21.9 15.0 13.0 17. 2 24. 2 15.8 13.8 Copalt's Cross- 15. 9 21.5 14.2 12.2 Coulee City.... 17.7 24.6 16.8 14.8 Coulee Dam_ 17.7 25.8 16.8 14.8 15 8 22. 2 14. 1 12. 1 Creston_ 17. 7 24.7 16.8 14.8 Harrington_ 16.3 22.0 15.0 13.0 Davenport. . . 17.8 25.0 16.8 14.8 17.2 23.7 15.9 13. 9 Deer Park_ 18.2 25.9 17.3 15.3 16. 3 22.0 14.5 12.5 East Sound_ 15.8 22.4 14.1 12. 1 East Stan wood. 15.9 21.5 14.5 12.5 Eatonville_ 15.7 21.3 14.5 12.5 Edmonds.. 15.0 20.5 13.5 11.5 El bp 16.3 22.5 14. 7 12.7 Electric City... 17.7 25.8 16.8 14.8 16. 8 22.9 15. 6 13.6 15.8 21.7 13.8 11.8 Endicott. 17.8 25.4 17.0 15.0 15 7 21 3 14. 5 12. 5 17. 2 23. 4 15.7 13.7 ' 17. 2 23. 9 16. 4 14. 4 15. 4 20. 9 13.9 11. 9 16.3 22.0 14. 5 12. 5 18.1 25. 4 17. 2 15. 2 16. 8 23. 2 15.1 13.1 Friday Harbor. 15.8 22.4 14. 1 12.1 18 1 25 4 17. 2 15. 2 Gig Harbor_ 15.3 21.3 13.8 11.8 Goldendale_ 16.4 22.6 15. 1 13. 1 Grandview_ 16.7 23.4 15.5 13.5 Grand Coulee.. 17.7 25.8 16.8 14.8 Granite Falls... 15.6 21.3 14.4 12.4 16.0 21 5 14 3 12. 3 17 8 25 4 16. 8 14 8 17.8 25.0 16. 8 14. 8 15.5 21.3 14.1 12.1 15.0 20. 5 13.5 11. 5 15.3 20.8 13.6 11. 6 15.9 22. 7 14. 5 12.5 19.1 26.1 18.3 16.3 15. 1 20 7 14. 1 12.1 17.2 24.1 16. 2 14. 2 15.6 21. 2 14. 0 12.0 15 6 21 1 13 4 11 4 Ifi 7 22 4 15 5 13 5 15. 0 20. 6 13. 5 11. 5 15. 0 20. 5 13. 5 11. 5 16. 3 23. 1 15.0 13. 0 15.9 21 5 14. 5 12 5 17 8 24 9 16 8 14 8 17. 8 24 6 16. 8 14. 8 15.8 22. 3 14. 1 12. 1 17 2 23 4 15 7 13 7 17. 2 25. 2 16. 2 14. 2 15 9 22 7 14 5 12 5 15. 6 21. 1 13. 4 11. 4 16 3 22 0 14 5 12 5 17 7 24 3 16 9 14 9 15. 8 21 4 14 3 12 3 Metaline Falls. 19. 1 26. 1 18.3 16.3 __ _ _ . 15 7 21 3 14 4 12 4 15 8 21 7 13 6 LI 6 16. 9 22. 6 15 2 13 2 Moses Lake.. . 17.2 24. 1 16.4 14.4 __ . 15 9 21 5 14 5 12 5 16 7 23 6 15 5 13 5 Noah Bay 15 8 26 1 14 1 12 1 Newix>rt _ 18. 5 25. 3 17. 6 15 6 North port 19. 3 27. 0 18 5 16 5 Oakendale.. 18. 1 25. 4 17. 2 15. 2 Oak Harbor.... 15.8 22. 2 14. 1 12. 1 Odessa. 17.7 24. 7 16.7 14.7 Location Gaso¬ line, sec¬ ond grade Keio- sene Auto, Diesel Diesel fuel Fur¬ nace oil Stove oil W'aifc—Con. Okanogan . 18.0 24. 8 17.1 15.1 Olympia 15. 3 20.8 13.8 11.8 Omak 18. 0 24. 8 17. 1 15. 1 Onalaska 16. 2 21.9 14. 6 12. 6 Orcas. 15. 8 22. 4 14. 1 12. 1 Oreville. 18. 5 25.0 17.6 15.6 Othello... _ 17.2 24. 1 16.3 14.3 . Palouse 18. 1 25. 6 17. 2 15. 2 Parkland 15.0 20. 5 13.5 11. 5 Pasco_.... 16.7 *3.2 15. 5 13.5 13.5 15.0 Peteros 17. 7 23.9 16.8 14. 8 Port Roberts 15.8 21. 4 14. 2 12. 2 Port Wells 15.0 20. 5 13. 5 11. 5 Pomeroy 17.8 24. 6 16.7 14.7 Portage 15.3 21.3 14. 1 12. 1 Port Angeles 15. 8 22. 2 14. 1 12. 1 Port Gamble 15. 3 23. 2 13. 8 11. 8 Port Orchard 15. 3 21. 5 13.8 11. 8 Port Townsend 15. 8 22.0 14. 1 12. 1 Poulsbo.. 15.3 21.3 13.9 11.9 Prescott 17.2 23.6 15.8 13.8 Presser 16. 7 24.7 15. 5 13. 5 Pullman.... 18. 1 25.6 17.2 15.2 Puyallup 15.0 20. 5 13. 5 11. 5 Quinalt 16 9 23.3 15. 1 13. 1 Quincv 17. •£ 23.9 16. 4 14. 4 Raymond 16. 3 22.0 14. 8 12. 8 Reardan .. 17.8 25.4 16.8 14.8 Redmond 15. 0 20. 5 13. 5 11. 5 Renton . 15.0 20.5 13.5 11. 5 Republic. 18.9 26. 5 18.0 16.0 Richardson .. 15. 8 22. 4 14. 1 12. 1 Richmond Beach 15. 0 20. 5 13. 5 11. 5 Ridgefield_ 15.0 20.5 13.8 11. 8 Ritzville. 17.2 25. 4 16.2 14. 2 Rock Harbor 15. 8 22. 4 14. 1 12.1 Rosalia. 17.8 25.4 17.1 15.1 16. 2 21.9 14.3 12.3 St. John 17.8 25.4 17. 1 15. 1 15. 8 22. 2 14. 1 12. 1 Seattle 15.0 20.5 13. 5 11.5 Sedro Wooley . 15.9 21. 5 14. 5 12. 5 Sekia 15.8 25.9 14. 1 12. 1 Sequian 15.8 22.2 14. 2 12.2 Shaw Island 15.8 14 1 12. 1 Shelton 15. 5 21.3 14.1 12. 1 Skamokawa_ 16. 2 22. 1 14. 1 12. 1 Snohomish.. 15. 4 21.0 13.9 11.9 Snoqualmie_ 16.0 21.6 14.7 12.7 - Location Gaso¬ line, sec¬ ond grade Kero¬ sene Auto, Diesel Diesel fuel Fur¬ nace oil {* Sto vt oil Wash—Con. South Bend.... 16.3 22.0 11.8 12.8 South Tacoma. 15.0 20.5 13. 5 11.5 Spangle_ 17.8 25. 4 17. 1 15. 1 Spokane_ 17.8 24.3 16. S 14. 8 Spokane Valley. 17.8 24.3 16.8 14.8 Sprague_ 17.8 25.4 16. 8 14.8 Stevenson_ 15.9 21. 5 14.5 12. 5 Sunnyside. 10. 7 23.4 15. 5 13.5 Tacoma_ 15.0 20. 5 13. 5 11. 5 Tekoa. .. 18. 1 25.4 17.2 15.2 Toledo.. 16.2 21.9 14.7 12.7 Tonasket. 18.2 24.8 17.4 15.4 Toppenish. 16.7 23. 1 15. 5 13.5 Twisp.. 18. 2 24. 4 17.3 15. 3 Uniontown_ 18. 1 25. 0 17.2 15. 2 Vancouver_ 15.0 20.5 13. 5 11.5 Vantage...._ 17.2 23.4 16.0 14.0 Waitsburg_ 17.2 23.6 15.8 13.8 Walla Walla... 16.7 23.3 15.5 13.5 13.5 15.0 Wapato_ . 16.7 23.2 15. 5 13.5 Washtucna_ 17.2 24. 1 16.2 14.2 Water ville_ 17.7 24.6 16.4 14.4 Wenatchee_ 17.2 23.2 15.7 13.7 13.7 15. 2 Westport_ 15.3 20.8 14.3 12.3 West Seattle_ 15.0 20. 5 13.5 11.5 White Salmon.. 16. 1 22.5 14.8 12.8 Wilbur. 17.7 24.7 16.8 14 8 Willapa . ... 16.3 22.0 14. 8 12.8 Wilson Creek... 17.7 24.4 16.5 14.5 Winloek.. . . 16.2 21. 9 14. 7 12. 7 Winslow. .. 15.3 21.3 13.8 11.8 Woodland _ 15.6 21.2 14.0 12.0 Yakima.... 16.7 23. 1 15.5 13.5 13.5 15.0 Yelm_ 15.8 21.4 14.3 12.3 (b) All tank wagon prices specified herein are applicable only within each seller’s customary free delivery zone at each point. For deliveries outside of such free delivery zones to points not spe¬ cifically set out herein, sellers’ customary . delivery differentials shall apply. \ (c) Quantity differentials that may be added and must be deducted are as fol¬ lows: 400 gallons and over 200-399 gallons 40-199 gallons Under 40 gallons Second grade gaso¬ line. Kerosene... Premium automotive diesel. Diesel fuel .. Furnace oil Base price... Deduct 1 ccnts/gallon. Base price_ .do. _do. . Add 0.5 cent/gallon... Deduet 3 cer.ts/gallon A dd 0.5 eent/gallon... ..do. _do___ Add 1 cent/gallon.... Base price_ Add 1 ccnt/gallon. _ .do. _do_ Add 4 cents/gallon. Do. Add 5 cents/gallor,. Do. Do. Do. Stove oil. _do.. _do... - .do,, .. (d) For premium grades of gasoline you shally apply your customary differ¬ ential between regular and premium grades. For third grade gasoline you shall apply your customary differential between regular and third grade gaso¬ line. (e) The specific ceiling prices set forth in this section may be adjusted to re¬ flect any increases in transportation costs occurring since September 1, 1951 in accordance with section 25 of Ceiling Price Regulation 17. Sec. 3. Ceiling prices for bunker grade diesel fuel. Ceiling prices for pipeline deliveries into barges or bunkering tanks of ocean-going motor ships f. o. b. re¬ fineries or marine terminals for the enumerated localities shall be as fol¬ lows: Excluding all taxes (per barrel) Los Angeles Harbor_$3. 44 San Francisco Harbor_ 3. 65 Portland, Oreg_ 3. 86 Seattle, Wash_ 3.86 To the above ceiling prices each seller may apply his customary differentials for quantity or method of delivery at facilities or points other than those enumerated. These ceiling prices shall not apply for cargo deliveries. Sec. 4. Ceiling prices higher than spe¬ cific prices. You may apply for a high¬ er ceiling price if your ceiling price prior to the effective date of the regulation was higher than the ceiling price set forth in this regulation, and if such higher ceiling price reflects the mainte¬ nance of a customary differential over the market price. This application shall be filed with the Regional Office of the Of¬ fice of Price Stabilization for that region in which is located the point where such higher ceiling price is applicable and shall include your name and address, product, the higher ceiling price, the de¬ livery point and a showing that the dif¬ ferential over the market has been 01^ ^ tomarily applied by you at this poii. Your application must be filed by regis- 81 Trans 34:1305 tered mail, return receipt requested. When your application has been received by the appropriate Regional Office of the Office of Price Stabilization, as shown by your return postal receipt, you may con¬ tinue to use such higher ceiling price until it is disapproved or modified by the Office of Price Stabilization. Szc. 5. Applicability of Ceiling Price Regulation 17. Sellers subject to this supplementary regulation shall be sub¬ ject to all the provisions of Ceiling Price Regulation 17, not inconsistent herewith. Effective date. .This supplementary regulation shall become effective July 15, 1952. Non: The reporting and record keeping requirement of this regulation have been ap¬ proved by the Bureau of the Budget In Ac¬ cordance with the Federal Reports Act of 1942. Ellis Arnall, Director of Price Stabilization. July 10, 1952. ■ \ ' . - r, - .... .. r • • ‘ .' < . - r ; ,-r . • : • ;• ©.til ’ ■ • ' • ' - ■ ' ' - c ■ " ■ c ■ FILE following 81 Trans 34:1305 (8-21-52) 81 Trans 34:9901 OPS PUBLIC FORM NO. 151 (8-52) PETROLEUM MARKETERS SURVEY PURSUANT TO CPR 17 AMENDMENT 7 UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION BUDGET BUREAU NO. 94-R920 APPROVAL EXPIRES APRIL 30, 1953 The individual company information reported on this form is for uso in connection with tho Do* fonso Mobilization Program. Parsons who havo access to individual company information aro subject to penalties for unauthorized disclosure. This form may be reproduced without change. r L_ n _i OPS CONTROL CODE REASONS FOR THIS REQUEST FOR INFORMATION This request for information is sent to you by your OPS District Office,on the assumption that you sell light heating oils to consumers. The Purvey initiated for collecting these data is being conducted at the specific request of industry representa¬ tives (including some of your fellow dealers) in your marketing area. Procedures for such data collection are authorized by Amendment 7 to OPS Ceiling Price Regulation 17. Its purpose is to determine whether present earnings on sales of light heating oils in your marketing area are below those of two years ago. All known independent dealers in the marketing area have received copies of this form; if any other such seller has not received a copy, he may request forms from the OPS District Office. Unless OPS receives completed forms from a sufficient number of dealers, it cannot act to consider the upward revision of present ceilings in your marketing area. There¬ fore, you Me requested to return this form, completed according to instructions, to your nearest OPS District Office. The re¬ quest for data was drawn up in consultation with representatives of your industry. It represents what they regard as the most convenient means of reporting the facts required by OPS to make a judgment as to earnings. The original copy of the form is to be returned to the OPS District Office; the second copy is for your use if you wish to retain it. In your area, only independent dealers are included in this survey. Any upward adjustments in ceiling prices, however, will apply to all sellers of heating oils to consumers. Read instructions carefully on the last page. IF YOU ARE AMY OF THE FOLLOWING, CHECK APPROPRIATE BOX. FURNISH YOUR NAME, ADDRESS, INDICATE TYPE OF OPERATION, TYPE OF ORGANIZATION. COMPLETE THE CERTIFICATION AND RETURN THIS FORM TO YOUR NEAREST OPS OFFICE. IF YOU DO NOT CHECK ONE OF THESE BOXES, COMPLETE THE FORM AND RETURN TOYOUR NEAREST OPS OFFICE. □ AN INTERGRATEO SUPPLIER (An interpreted supplier is one which is wholly-owned by a product and/or refiner) SELLING LIGHT HEATING OILS TO CONSUMER □ AN INDEPENDENT SUPPLIER NOW SELLING LIGHT HEATING OILS TO CONSUMERS BUT WITH NO BUSINESS RECORDS FOR THE PERIOD JUNE 1 . I 94» TO MAY 31 . 1 *50 (If you are a successor to any supplier you uust use his records if available) ] A NON-SELLER OF HEATING OILS TO CONSUMERS. NAME OF OPERATOR ADDRESS (No. and Street) (City, Zone, State) TYPE OF OPERATION | 1 BUfeK PLANT | | OiHER (Specify) TYPE OF ORGANIZATION | 1 CORPORATION PARTNERSHIP | | PROPRIETORSHIP 81 Trans 34:9902 OfS PUBLIC FORM NO. 1 51 (8-52) (PAGE 2) Complete this Section as nearly as possible according to your records. See instructions. Report to nearest gallon and dollarfOmit all fractions/. Report items 2 to 32 in dollars. Enter zero (O)when there is no entry. SPECIAL INQUIRY — State your present ceiling prices and the gallons that were sold during the period June 1, 1951 to May 31, 1952 or other current period used in this form for the heating oils shown below. PRODUCT CEILING P RICE GALLONS SOLD Kerosene or No. 1 Fuel Oil No. 2 Fuel Oil Range Oil Furnace Oil Stove Oil OPERATING STATEMENT ITEMS (a) JUNE 1, 1949 TO MAY 31, 1950 JUNE 1, 1951 TO MAY 31, 1952 LIGHT FUELS AT TANK WAGON LEVEL (b) ALL OTHER PRODUCTS (c) TOTAL OPERATION (d) LIGHT FUELS AT TANK WAGON LEVEL (•) ALL OTHER PRODUCTS (0 TOTAL OPERATION (») SALES 1. Quantity - TOTAL (In gallons) X X X X X X X X X X X X X X X X (A) Consumers (In gallons) X X X X X X X X X X X X X X X X (B)*Resellers (In gallons) X X X X X X X X X X X X X X X X 2* Amount - TOTAL $ s $ $ S $ (A) Consumer X X X X X X X X X X X X X X X X (B) Resellers X X X X X X X X X X X X X X X X COST OF GOODS SOLD 3. Opening inventory 4. Purchases - Total cost 5. TOTAL OF 3 AND 4 • 6. Less: Closing inventory 7* Cost of goods sold (Item 5 minus item 6) 8. GROSS P ROFIT (Difference between items 2 ana 7) EXPENSES OPERATION OF YARD 9. Wages and salaries 10. Repairs and maintenance 11. Depreciation 12. Insurance and taxes (Ex¬ cluding income taxes) 13. Other 14. TOTAL YARD EXPENSES 81 Trans 34:9903 DELIVERY AND OTHER DIRECT EXPENSES 15. Wages and sal arias $ $ $ s $ $ 16. Maintananca - Trucks 9. 17. Dapraciation 18. Insurance, taxes, (Excluding income taxes) and licenses 19. Other on TOTAL DELIVERY AND OTHER DIRECT EXPENSES SALES EXPENSES 21. Salaries and commissions 22. Promotion, advertising and other 23. TOTAL SALES EXPENSES ADMINISTRATIVE AND GENERAL EXPENSES 24. Executive Salaries 25. Office salaries 26. Employees' benefits end welfare 27. Other 28. TOTAL ADMINISTRATIVE AND GENERAL EXPENSES 29. TOTAL OPERATING EXPENSES 30. NET PROFIT OR (LOSS) ON SALES 31. BURNER SERVICE • NET PROFIT (LOSS) xxxx ' xxxx 32. NET OPERATING PROFIT OR (LOSS) PERCENTAGE CALCULATIONS 33. SALES 100.0 100.0 100.0 100.0 100.0 100.0 34. COST OF GOODS SOLD 35. TOTAL OPERATING EXPENSES 3i 8iT(L0ops!fAT,NG PR0F,T • 37. IF THERE WERE ANY INCREASES OR DECREASES IN WA6ES, EMPLOYEE BENEFITS, OR OTHER EXPENSES DIRECTLY RELATED TO LABOR COSTS, DURING OR SINCE YOUR FISCAL YEAR ENDING IN 1952, ATTACH A SEPARATE STATEMENT SHOWING WHAT YOUR EXPENSES FOR HANDLING LIGHT FUEL OILS (Shown in column (*)) WOULD HAVE BEEN IF YOUR CURRENT RATES HAD BEEN IN EFFECT THROUGHOUT YOUR FISCAL YEAR ENDING IN 1952. THIS STATEMENT SHOULD INCLUDE, IN ADDITION TO THIS ESTIMATE, THE RATES USED TO COMPUTE DATA IN COLUMNS (E), (F) AND (G), THE MOST RECENT WAGE RATES AND THE DATE APPROVED BY THE WAGE STABILIZATION BOARD. 38. ATTACHMENTS * A. List for the two reporting periods quantities ( where applicable ) and dollar value of sales by major classifications of your products and services other than for light heating oils. B. List for light heating oils the number of gallons and cost of (a) inventories at the beginning and end of each report¬ ing period and of (b)purchases during each period. Show this broken down bytypesof products (kerosene. No. 1 and No. 2 fuel oils, furnace oil, stove oil and range oil). I certify that the information given in this form is true and correct to the best of my knowledge and belief. NOTICE - A, willfully false statement is a criminal offense. ^_SI GNATURE OF OWHER OR AUTHORIZED AGENT TITLE DATE •UPL Public form no. isi (•-52) (page 3) > 81 Trans 34:9904 INSTRUCTIONS FOR OPS PUBLIC FORM NO. 151 All questions in reference to presentation of data should be referred to your OPS District or Regional Office. SUBSTITUTION OF ANOTHER FISCAL YEAR.U your records are not maintained on a June 1, 1949 to May 31, 1950 and June 1,1951 to May 31, 1952 basis, you may substitute data based on the fiscal year July 1, 1949 to June 30, 1950 and July 1, 1951 to June 30, 1952. The change in period dates should be noted on the form by substituting these dates for those appearing on top of columns (b) to (g). Substitution of Certain DaU. Those marketers unable to supply detailed data as called for in items 9-13, 15-19, 21-22, 24-27 should supply group total* as called for in items 14, 20, 23 and 28 together with detail of these totals as carried on their records. ITEMS 1 AND 2 — SALES ileport the gallonage and amount of your sales at the tank wagon level of light oils, that is, kerosene. No. 1 and No. 2 fuel oils, furnace oil, stove oil, and range oil, to resellers, consumers, and total for each period in items 1 (A), 1 (IB), 2 (A) and 2 (B). If you conduct a retail business only, your deliveries of light fuels should be reported as sales to con¬ sumers. Report the amount of other product sales under all other products (columns (c) and (f)). JJader this column you would in* elude such other petroleum produ'ets as gasolines, lubricants, light oils to industrial consumers at other than tank wagon level. No. 4, 5 and 6 fuel oils, solid fuels, building supplies, TBA items, road and drive-way supplies and equipment, and such other items as go to make up your total business. Do not include in this column your oil burner service activities, as the net gain or loss incurred in this service should be reported in item 31. In the columns (d) and (g) “total operations,” report the com¬ bined total for light fuels and all other products or business- activities. ITEMS 3 TO 7—COST OF GOODS SOLD Show in the columns provided therefor the value of your opening and closing inven¬ tories, cost of purchases f.o.b. your plant and gross operating profit. If you conduct a direct retail operation only, the chances are you purchase supplies as you sell them. This being the case, you would have only the one figure to report and that is the cost of your purchases “under the rack.” ITEM 8—GROSS PROFIT Your gross profit is the difference be¬ tween the total amount of your sales (item 2) and cost of goods sold (item 7). If item 7 is greater, it should be entered as a minus figure. EXPENSES Careful segregation of expenses should be made between light fuels and all other products or business activities. If cer¬ tain items apply to your entire business and have not been allo¬ cated on any other basis, they should be distributed on the basis of relative sales values. In any-event, you must show your net operating profit on light fuels and other activities. Identical bases of allocation must be follbwed in both periods or a satis¬ factory explanation furnished of any change. For the most part, you will find the various expense items listed to be self-explanatory. However, certain elements msv re¬ quire some additional comments. ITEM 9 TO UrOPERATION OF YARD If you conduct an inte¬ grated business such as purchasing supplies from a primary terminal supplier and maintain terminal and bulk plant facilities, you will have expenses to report for operation of these facilities, which are in addition to your regular truck delivery services. ITEMS 15 TO 2(DELIVERY AND OTHER DIRECT EXPENSES The expenses incurred by you in making deliveries of light fuels to consumers should be reported under this caption. Expenses of your other activities should be reported in the column provided for all other products. ITEM 21 TO 23—iSALES EXPENSES Your selling expenses should be reported under this caption. If it is impractical for you to segregate selling expenses from other expense items such as office and officers’ salaries, they should be reported according to your own accounting classification. Report under the proper caption all promotional advertising incurred by your organiza¬ tion in its selling campaigns. ITEMS 24 TO 28-ADMINISTRATIVE AND GENERAL EXPENSES All expenses of an administrative and overhead nature should be reported under this caption. No doubt, for certain items applicable to your entire business, it will be necessary to employ an arbitrary basis of allocation. The proportion of dollar income for total light fuel sales (in dollars) to all sales (in dollars) is recommended as an arbitrary basis of allocation where none is normally employed. ITEM 29—TOTAL OPERATING EXPENSE The amount to be entered on this line is the combined total of items 14, 20, 23 and 28. ITEM 30-NET PROFIT OR (LOSS) ON SALES The amount to be entered on this line is the difference between the gross profit (item 8) and total operating expense (item 29). ITEM 31—OIL BURNER SERVICE Most distributors of light heating oils conduct a service department to take care of their customers’ furnaces and storage facilities. As the methods and charges vary with localities and kind of service rendered, only the net profit you incurred in this department should be reported. ITEM 32—NET OPERATING PROFIT OR LOSS Your net profit or loss is determined after adjusting the net operating profit on sales by the profit or loss incurred in burner service department. ITEMS *33 to 36-PERCENTAGE CALCULATIONS Calculate the percentage of cost of sales, total expenses and net operating profit as determined for your business in each fiscal period. To get the percentage in items 34, 35 and 36, divide (a) your cost of goods sold (item 7), (b) total operating expenses (item 28) and (c) net operating profit (or loss) (item 32) by item 2. FILE following 81 Trans 34:9 (4-13-51) 81 Trans 35:1 Coal Sold for Direct Use as Bunker Fuel Ceiling Price Regulation 21 APRIL 10, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 21] CPR 21—Coal Sold for Direct Use as Bunker Fuel Pursuant to the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 F. R. 738), this Ceil¬ ing Price Regulation 21 is hereby issued. STATEMENT OF CONSIDERATIONS The supplying of coal for use as bunker fuel is a specialized problem from the standpoint of coal marketing. While bunkering takes place at tidewater ports throughout the year, in the case of coal supplied to vessels on the Great Lakes, it is a seasonal occupation, being limited to the period of navigation on those lakes, generally being confined to the period beginning the middle of March and ex¬ tending to the middle of December. Coal is supplied to the vessels from railroad car dumps, from lightering vessels and from docks. Prices of bunker fuel represent the mine price plus transportation costs and handling charges. Because of the close relationship with mine prices, it is fair and reasonable to base ceiling prices for bunker fuel on the same twelve months period prior to the Korean outbreak as was found representative insofar as f. o. b. mine prices f-or the bituminous coal industry are concerned. Ceiling prices at the mine, one of the principal components of the bunker fuel price, have advanced pursuant to the authority of Ceiling Price Regulation No. 3 made effective on February 1, 1951. The effect of these prices is to shrink the gross margin of the supplier of bunker fuel because his prices heretofore have been subject to the general price freeze. Similarly, freight rates represent an¬ other principal component in the bunker fuel price. Increases in these transpor¬ tation costs have to be absorbed by the supplier unless provision is made for them in addition to the bunker price. Since suppliers are not in a position to absorb such costs they are authorized to include increases in transportation costs that have taken place since/ the end of the base period to the effective date of this regulation, including freight rate additions of April 4, 1951. In the case of bunker fuel supplies at tidewater ports, it is imperative that there must be no delay or interruption in servicing vessels carrying arms and supplies to our armed forces overseas or to vessels carrying supplies to those countries receiving economic and mili¬ tary aid from the United States. In the case of bunker fuel supplies for vessels on the Great Lakes, it is vitally necessary that such fuel in ample quantity be available at the time of the opening of navigation so that there will be no delay in the movement of vessels to the head of the lakes for the transportation of iron ore to our steel plants and it is equally imperative that supplies be un¬ interrupted throughout the season of navigation in order that the requisite amounts of iron ore and other commodi¬ ties may be transported over the Great Lakes system. The establishment of ceiling prices on bunker fuel based on the highest price received by the supplier of bunker fuel during the base period (July 1, 1948, through June 30, 1949), generally places the bunker fuel supplier in the same relation to his suppliers as existed during that period because f. o. b. mine prices are frozen at the highest levels existing during the same base period. In keep¬ ing with the provisions of Ceiling Price Regulation No. 3, it is reasonable to per¬ mit the supplier of bunker fuel to in¬ crease his prices by the increase in costs incurred by his supplier as a result of the wage advance of February 1, 1951, and it is also reasonable to permit him to increase his price by the increase in transportation charges over those which existed in the base period of July 1, 1948, to June 30, 1949. Such a basis for ceil¬ ing' prices for suppliers of bunker fuel will promote stability and efficiency in that branch of the coal industry. Like Ceiling Price Regulation No. 3 in respect to bituminous coal producers, this regu¬ lation establishes for bunker fuel sup¬ pliers a ceiling weighted average realiza¬ tion for each size, grade, grouping or classification of coal at each facility or group of facilities. This realization is the same as that obtained in the period July 1, 1948 to June 30, 1949, and may be adjusted to reflect the increases per¬ mitted by the regulation, and may not be exceeded in any 12-month period be¬ ginning April 1, 1951. This control in price levels provides an effective means of price stabilization. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the provisions of Ceil¬ ing Price Regulation No. 21 are generally fair and equitable and are necessary to effectuate the purpose of Title IV of the Defense Production Act of 1950. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Produc¬ tion Act of 1950 to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; and to relevant factors of general applicability. In formulating this regulation the Di¬ rector has consulted with representatives of the industry to the extent practicable under the circumstances, and has given consideration to their recommendations. REGULATORY PROVISIONS Sec. 1. Applicability of regulation. 2. Definitions. 3. Prohibition against selling at prices above the ceiling. 4. Ceiling prices and celling weighted aver¬ age realization. 5. Procedure for establishing ceiling prices and ceiling weighted average realiza¬ tion for new suppliers of bunker fuel. 6. Less than ceiling prices. 7. Evasion. 8. Reporting, invoicing and record-keeping requirements. 9. Petitions for amendments. 10. Taxes. 11. Enforcement. Authority: Sections 1 to 11 issued under sec. 704, Public Law 774, 81st Cong. Interpret or apply Title IV, Public Law 774, 81st Cong., E. O. 10161, Sept. 9, 1950, 15 F. R. 6105. Section 1. Applicability of regulation. This regulation establishes ceiling prices and ceiling weighted average realization for coal sold as bunker fuel both at points on the Great Lakes and their con¬ necting or tributary waters and at points at tidewater. Sec. 2. Definitions. When used in this regulation, the term: (a) “Person” includes an individual, corporation, partnership, association or any other organized group of persons or legal successor or representative of any of the foregoing, and includes the United States or any agency thereof, or any other government, or any of its political subdivisions, or any agency of any of the foregoing; (b) “Coal” mearvs (1) Bituminous coal, including all bituminous, semi-bitu¬ minous and sub-bituminous coal; (2) lignite; (3) Virginia anthracite coal; and (4) Pennsylvania anthracite. (c) “Bunker Fuel” means coal used aboard a vessel for consumption thereon. (d) “Supplier of bunker fuel” means any producer, distributor, retailer, bunk¬ er agent or other person (and an agent of any of them) who sells or disposes of bunker fuel and delivers or procures the delivery of the same to vessels at points on the Great Lakes and their con¬ necting or tributary waters or at tide¬ water for immediate use as bunker fuel, and who incurs the duties and risks at¬ tributable to the handling of bunker fuel. It does not include persons who sell coal to another person for general use or for delivery by such other person as bunker fuel. Delivery may be from a mine or a preparation plant operated as an adjunct of a mine or mines, or from a yard, dock, pier, elevator, bin, or other terminal facility or from a transporta¬ tion vehicle or vessel. 81 Trans 35:2 (e) “Points on the Great Lakes and their connecting or tributary waters” means any port, point or place on Lake Superior, Michigan, Huron, Erie, and Ontario, the waters connecting those lakes, the St. Lawrence River, and those tributaries of the enumerated lakes which are not included in the inland waterways system. (f) “Points at tidewater” means any tidewater port, point, or place on the At¬ lantic and Pacific Coasts of continental United States, and the coast of conti¬ nental United States on the Gulf of Mexico. (g) “Ton” means a short or net ton of 2,000 pounds. (h) “Base Period” means (1) for all coal produced east of the Mississippi River, the period from July 1, 1948, to June 30, 1949, inclusive; (2) for all coal produced west of the Mississippi River, the period March 1,1950, to December 31, 1950, inclusive. (i) “Ceiling price” means the highest price applicable to a particular size, grade, grouping, or clasification of coal determined in accordance with the pro¬ visions of this regulation. (j) “Realization” is the gross amount of money or value received or debited to the account of the supplier in the sale of bunker fuel (including commissions and discounts). Sec. 3. Prohibition against selling, de¬ livering or otherwise disposing of bunker fuel at prices above the ceiling. On or after the 10th day of April, 1951, regard¬ less of any contract, agreement, lease or other obligations: (a) No person who is a supplier of bunker fuel shall sell, deliver or other¬ wise dispose of bunker fuel to any person at prices higher than the ceiling prices determined in accordance with the pro¬ visions of this regulation. (b) No«person shall, in the course of trade or business, buy or receive such bunker fuel at prices higher than the ceiling prices determined in accordance with the provisions of this regulation. (O No person shall agree, offer, solicit, or attempt to do anything prohibited in paragraphs (&) and (b) of this section. Sec. 4. Ceiling prices and ceiling weighted average realization, (a) The ceiling prices for each supplier of bunker fuel for each size, grade, grouping or classification of coal at each place or facility, as established by previous mar¬ keting practices, shall be the highest price charged by such supplier of bunker fuel for each size, grade, grouping or classification of coal sold for bunker fuel use at each place or facility during the base period. (b) The prices charged for each size, grade, grouping or classification of coal at each place or facility where such coal is delivered shall be such that the weighted average realization per ton ob¬ tained by the supplier of bunker fuel for the 12-month period commencing April 1, 1951, and ending March 31, 1952, and for each 12-month period beginning on the. first day of each succeeding month, commencing May 1, 1951, for each such size, grade, grouping or classi¬ fication at each such place or facility shall not exceed the weighted average realization obtained by the supplier of bunker fuel from the sale, delivery or other disposal of each such size, grade, grouping or classification at each place or facility during the base period. (c) The supplier of bunker fuel shall determine his ceiling weighted average realization for the base period for each size, grade, grouping or classification of coal at each place or facility where such coal is delivered by dividing the realiza¬ tion received from sales of bunker fuel by the number of tons so sold. (d) The ceiling prices and ceiling weighted average realization determined in accordance with the provisions of this regulation for each size, grade, grouping or classification at each place or facility may be increased by an amount not exceeding the actual dollar-and-cents per ton increase in (1) transportation costs, rail and/or water from the mine to the point of delivery, that have be¬ come effective since the base period and not later than the effective date of this regulation; (2) the cost of coal, f. o. b. the mine, charged by the principal sup¬ plier who furnished the principal sup¬ ply of each size, grade, grouping or clas¬ sification at each place or facility dur¬ ing a prior representative period, pro¬ vided such increased cost of coal re¬ sulted from any wage and salary ad¬ vances and other items related to the payroll which became effective on or after January 1, 1951, and prior to July 1, 1951, under the authority of Ceiling Price Regulation No. 3 (Coal, except Pennsylvania Anthracite, Delivered from Mine or Preparation Plant) and Ceiling Price Regulation No. 4 (Anthracite De¬ livered from Mine or Preparation Plant), both issued by the Director on February 1, 1951. (e) The ceiling prices and ceiling weighted average realization determined pursuant to the provisions of this section may, at the option of the supplier of bunker fuel, be determined and estab¬ lished for a group of places or facilities where the selling prices for each size, grade, grouping or classification of coal have been uniform at each place or fa¬ cility in the group by prior custom and practice in the marketing of bunker fuel. Sec. 5. Procedure for establishing ceil¬ ing prices and ceiling weighted average realization for new suppliers of bunker fuel, (a) In the event a supplier of bunker fuel was not in business, did not sell a particular size, grade, grouping or classification of coal, or did not act as a supplier of bunker fuel at a specific place or facility during the base period, he may file an application, in duplicate, seeking the establishment of ceiling prices and ceiling weighted average real¬ ization that are fair and equitable. Such application shall set forth, among other things, the name and principal address of the applicant, the port or ports at points on the Great Lakes and their con¬ necting or tributary waters and points at tidewater at which he intends to sell, deliver, or otherwise dispose of bunker fuel, the particular size, grade, grouping or classification for which ceiling prices or ceiling weighted average realization are requested, and the price or realiza¬ tion amount which the applicant pro¬ poses therefor; and the applicant shall furnish the same information, including the ceiling prices and ceiling weighted average realization, for another sup¬ plier of bunker fuel performing the same services and operating the same or similar places or facilities. (b) The Director may request any other information deemed necessary by him to a fair and reasonable determina¬ tion of the issues raised in the applica¬ tion. (c) For 60 days after filing the appli¬ cation the applicant may sell bunker fuel at temporary ceiling prices no higher than the ceiling prices established under this regulation for the bunker fuel sold by another supplier of bunker fuel per¬ forming the same services and operating in the same or similar places or facili¬ ties. After 60 days from the filing of the application, if no action has been taken by the Director, the prices as requested in the application shall be the ceiling prices for such bunker fuel. The filing date herein shall be the date on which the application is received by the Direc¬ tor in the principal office of the Office of Price Stabilization, Washington, D. C. (d) The Director may at any time re¬ view and revise ceiling prices or ceiling weighted average realizations proposed or established under this section if they appear to be inconsistent with the pro¬ visions of this regulation. Sec. 6. Less than ceiling prices. Lower prices than those established under this regulation may be charged, demanded, paid or offered. Sec. 7. Evasion. The price limitations set forth in this regulation shall not be evaded, whether by direct or indirect methods, in connection with an offer, solicitation, agreement, sale, delivery, purchase or receipt of or relating to bunker fuel alone or in conjunction with any other commodity or by way of com¬ mission, service, transportation, or other charge, or discount, premium or other privilege, or by tie-in agreement or other trade understanding, or by the making of excessive charges for trucking or otherwise. Persons subject to the regu¬ lation shall continue to observe their customary and standard cash discount practices. Sec. 8. Reporting, invoicing and record-keeping requirements, (a) Each person subject to this regulation shall keep on file invoices, sales data and any other records necessary to substantiate the ceiling prices and ceiling weighted average realization, and shall preserve and keep said invoices, sales data and records available for inspection by the Director for a period of two years. (b) Each supplier of bunker fuel shall report to the Director, by letter, within 30 days after the effective date of this regulation, his (1) ceiling prices and ceiling weighted average realization for the base period computed under the pro¬ visions of sections 4 (a), (c) and (e) of this regulation; (2) each adjustment au¬ thorized under section 4 (d) of this regu¬ lation; and (3/ the sum of (1) and (2), being the adjusted ceiling prices and ceiling weighted average realization. 81 Trans 35:3 (c) Each supplier of bunker fuel shall file a certified statement, by letter, of his ceiling prices, including adjustments, if any, determined in accordance with the provisions of this regulation with the Director and with the regional office or offices of the Office of Price Stabilization in the region or regions where the coal is delivered, within 30 days after the ef¬ fective date of this regulation. (d) Each person subject to this regula¬ tion shall furnish to each person to whom he sells bunker fuel an invoice stating the ceiling price established by this regulation separately from any other charge or a certified statement that the prices charged do not exceed the ceiling prices established under this regulation. Sec. 9. Petitions for amendment, (a) Any person seeking an amendment to any provision of this regulation may file a petition in accordance with the provi¬ sions of Price Procedural Regulation No. 1 issued by the Economic Stabilization Agency and with the provisions of this regulation. Sec. 10. Taxes. There may be added to the applicable ceiling price the amount of any transportation tax or sales, gross receipts, gross proceeds or use tax levied by any statute or ordinance, under which the tax is measured by gross proceeds or units of sale, only if the statute or ordi¬ nance permits or requires the seller to state the tax separately and the„ seller does state it separately on his invoice or other memorandum of sale, and only if the seller customarily added the amount of such tax to the ceiling price and separately stated the tax on his in¬ voice prior to the effective date of this regulation. Sec. 11. Enforcement. Persons vio¬ lating any provision of this regulation are subject to the criminal penalties, and enforcement actions, and suits for damage provided for by the Defense Pro¬ duction Act of 1950. Effective date. This regulation shall become effective on April 10, 1951. Note. The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Edward F. Phelps, Jr., Acting Director of Price Stabilization. April 10, 1951. O P0 6^-380105 ' ... FILE following 81 Trans 35:3 (1-15-53) 81 Trans 35:5 Increased Transportation Costs OFFICE OF PRICE STABILIZATION Ceiling Price Regulation 21 Amendment 1 JANUARY 15. 1953 WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter ill—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 21, Amdt. 1| CPR 21—Coal Sold for Direct Use as Bunker Fuel INCREASED TRANSPORTATION COSTS Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161 and Economic Stabilization Agency General Order No. 2, this Amendment 1 to Ceiling Price Regulation 21 is hereby issued. STATEMENT OF CONSIDERATIONS CPR 21 covers the operations of bunker fuel suppliers. Nearly all of them are lake dock operators (CPR 27) or tidewater dock operators (SR 4, GCPR) and some are retail coal dealers (SR 2, Rev. 1 GCPR). Prior to this amendment CPR 21 has permitted bunker fuel suppliers to add to their ceil¬ ing prices previously established the actual dollars-and-cents amount of in¬ crease in transportation costs which be¬ came effective after the base period but not later than the effective date of the regulation, i. e., April 10, 1951. This amendment eliminates the cut-off date so that all transportation cost increases which have or may occur after the base period may be passed on by the bunker fuel supplier, provided that such in¬ creases are authorized by the Director, the Interstate Commerce Commission, or other regulatory body. Transportation costs account for 30 percent to 50 percent of the cost of ac¬ quisition of bunker fuels. Where trans¬ portation costs constitute such a sub¬ stantial part of the total delivered costs of a commodity it has been found neces¬ sary in other regulations to permit a pass-through of increased freight costs— e. g. GCPR, SR 2 (Retail Coal Dealers), GCPR, SR 4 (Tidewater Coal Dock Dealers), and CPR 27 (Lake Coal Dock Operators). The increased transporta¬ tion costs incurred by bunker fuel sup¬ pliers are the same as those incurred by retail coal dealers, tidewater coal dock dealers, and lake coal dock opera¬ tors. This amendment provides similar treatment for bunker fuel suppliers as has been given to other solid fuels deal¬ ers, and removes any possible discrimi¬ nation which may heretofore have existed. In order to maintain the relationship between ceiling prices and ceiling weighted average realization, bunker fuel suppliers may also add the same dollar-and-cents amount of transpor¬ tation cost increases to the ceiling weighted average realization established under CPR 21. In the judgment of the Director of the Office of Price Stabilization, the provi¬ sions of this amendment are generally fair and equitable, and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national defense effort to achieve the maximum production in the furtherance of the objectives of the Defense Production Act of 1950, as amended. In the formulation of this amendment there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, to the extent practicable, and consideration has been given to their recommendations. AMENDATORY PROVISIONS Ceiling Price Regulation 21 is hereby amended in the following respect: 1. Section 4 (d) (1) is amended to read as follows: < 1) transportation costs, rail and/or water from the mine to the point of delivery that has or may become ef¬ fective since the base period, Provided, Such increase in transportation costs was authorized by the Director, an order of the Interstate Commerce Commission, or any regulatory body of a state, terri¬ tory or possession of the United States, And provided further, That the authority to increase the ceiling weighted average realization and the ceiling prices of each size, grade, grouping or other classifica¬ tion by the exact amount of increase in transportation costs shall be effective only upon receipt by the supplier of bunker fuel of a carrier’s invoice, freight bill or other statement of transporta¬ tion charges for each such size, grade, grouping or other classification, reflect¬ ing the increased freight charges and required to be oaid by the supplier of bunker fuel. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This Amendment 1 shall become effective January 15, 1953. Joseph H. Freehill, Director of Price Stabilization. January 15, 1953. A 9«t • i - - - ■ - ' ■ FILE following 81 Trans 35:3 (5-4-51) 81 Trans 36:1 Lake Coal Dock Operators Ceiling Price Regulation 27 MAY 1, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 27] CPR 27—Lake Coal Dock Operators Pursuant to the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Ceiling Price Regulation 27 is hereby is¬ sued. STATEMENT OF CONSIDERATIONS . The coal docks located on the United States bank of Lake Superior and on that part of the west bank of Lake Mich¬ igan north of and including Waukegan, Illinois, have been aptly referred to as the coal mines of the Northwest. Elab¬ orate facilities are utilized by such docks to handle, prepare and size coal to meet the varied needs of the Northwest area supplied by the docks. Except for the physical distance of such a dock from the coal mines which supply it, the dock and its facilities might well be consid¬ ered “a preparation plant which is an adjunct of a mine or mines” within the meaning of Ceiling Price Regulation No. 3 (Coal, except Pennsylvania Anthra¬ cite, Delivered from Mine or Preparation Plant). Since the overwhelming preponder¬ ance of the solid fuel tonnage handled or prepared on these docks and sold from them is the coal subject to Ceiling Price Regulation No. 3 (when sold by the pro¬ ducer f. o. b. the mine to the dock opera¬ tor) it is appropriate that the pattern of this regulation should follow so far as practicable the pattern of Ceiling Price Regulation No. 3. In this way, the ceiling prices for coal sold from the docks will be reasonably related to the ceiling prices which the dock operators may have to pay to the producer under Ceiling Price Regulation No. 3. The basic pattern of Ceiling Price Regula¬ tion No. 3 in respect to base period, the period on the basis of which ceilling prices are determinable, and ceiling weighted average realization are sub¬ stantially followed in this regulation. Some reasonable modifications in the basic pattern have been made in order to accommodate it to the distinguishing features of the lake dock coal trade, in¬ cluding (a) the problems incident to the fact that the lake docks handle normally coals from many different mines which produce coals of varying grades and sizes and (b) the fact that the ceiling prices at the mine, one of the principal com¬ ponents of the lake coal dock operators’ prices, have advanced pursuant to the authority of Ceiling Price Regulations Nos. 3 and 4, which became effective on February 1, 1951. The early and orderly establishing of ceiling prices will permit the lake dock operators to proceed efficiently to make the arrangements which now have to be made for the purchase of coal and for water transportation facilities in order to assure that the 1951 season of lake navigation will be utilized effectively to provide for the coal needs of the indus¬ tries and other consumers of the North¬ west who are dependent on the lake dock operators for their supply. A relatively small amount of Pennsyl¬ vania anthracite, coke, briquets and packaged fuel is sold from the lake docks and adjacent facilities and those solid fuels are also covered by this regulation. The regulation provides that the ceil¬ ing prices shall be the highest prices charged for any size, grade, grouping or other classification of coal sold at a dock during the base period or the period Jan¬ uary 1 to 15, 1951, and that the ceiling weighted average realization shall be that obtained during the base period. These ceilings may be increased by the per-ton amount of increase in the f. o. b. mine cost of the principal supplier in the base period or the 1950 season of lake navigation resulting from recognized wage and salary advances which become effective on or after January 1, 1951, and prior to June 30, 1951. Transportation costs represent an im¬ portant component in the cost of solid fuels at the lake docks. Substantial in¬ creases in transportation rates have oc¬ curred since the base period, including a recent increase in railroad freight rates up to six cents per net ton (seven cents per gross ton). Furthermore, lake vessel rates are likely to increase to some ex¬ tent as a result of a Supplementary Reg¬ ulation 12 to the General Ceiling Price Regulation, which became effective on March 14,1951. However, this regulation does not authorize these transportation cost increases to be reflected in the ceil¬ ing prices. Increases in labor and other costs in¬ curred by the lake coal dock operator, likewise, may not be added to the ceiling prices. The industry is not prejudiced, however, from applying in the future for increases to reflect transportation or other cost increases in the light of the prevailing standards in effect for grant¬ ing adjustments. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the provisions of Ceiling Price Regulation No. 27 are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; and to relevant factors of general applicability. In formulating this regulation the Di¬ rector has consulted with representa¬ tives of the industry to the extent prac¬ ticable under the circumstances, and has given consideration to their rcommen- dations. Sec. 1. Applicability of regulation. 2. Definitions. 3. Prohibition against selling, delivering or otherwise disposing of coal at prices above the ceiling. 4. Ceiling prices and ceiling weighted aver¬ age realization. 5. Retail sales and dock handling services. 6. Procedure for establishing ceilings on new products. 7. Transportation charges. 8. Taxes. 9. Interest rates on overdue -accounts. 10. New operator or owner. 11. Less than ceiling prices. 12. Evasion. 13. Sales agents and distributors. 14. Reporting, invoicing and record-keeping requirements. 15. Petitions for amendment. 16. Enforcement. Authority: Sections 1 to 16 issued under Sec. 704, Public Law 774, 81st Cong. In¬ terpret or apply Title IV, Public Law 774, 81st Cong., E. O. 10151, Sept. 9, 1950, 15 F. R. 6105; 3 CFR, 1950 Supp. Section 1. Applicability of regulation. This regulation establishes ceiling prices and ceilings on weighted average realiza¬ tion for solid fuels received at and sold from docks on the United States bank of Lake Superior and on that part of the west bank of Lake Michigan north of and including Waukegan, Illinois, except that it shall not apply to sales of vessel fuel or retail sales, nor does it cover pric¬ ing of coke, briquetts or packaged fuel at the producing level. Sec. 2. Definitions. When used in this regulation, the term: (a) “Person” includes an individual, corporation, partnership, association, or any other organized group of persons, or legal successor or representative of any of the foregoing, and includes the United States or any agency thereof, or any other government, or any of its political subdivisions, or any agency of any of the foregoing; (b) “Lake Dock Operator” means any person (including an operator who is the same person as the producer) who (in person or by an agent) handles, stores and/or prepares solid fuel on a lake dock or at facilities which are an adjunct of such dock and sells such solid fuel for 81 Trans 36:2 its own account in not less than cargo or carload lots, or the equivalent thereof, at or for delivery from such lake dock or facilities. (c) "Retail coal dealer” means any person (including the retail outlet, branch or department of one who is also a lake dock operator) to the extent that he sells, delivers or disposes of solid fuel in a transaction involving the disposal of solid fuel physically handled in a truck, wagon or other less-than-carload facility without regard to quantity or frequency of delivery. "Retail sales” mean sales of solid fuel by a retail solid fuel dealer. (d) “Producer” means a person en¬ gaged in the business of mining or pre¬ paring coal at a preparation plant which is an adjunct of a mine or mines, or in producing coke, semi-distilled coal, briquets, packaged fuel or petroleum coke; and any person acting as an agent of a producer. (e) "Distributor”, as used herein, means a person who purchases solid fuel from a lake dock operator for resale, and resells the same in not less than cargo or railroad carload lots, or the equiva¬ lent thereof, without physically han¬ dling such solid fuel; and any person acting as an agent of such distributor in the sale of solid fuel; (f) “Sales Agent”, as used herein, is a person who as agent of a lake dock operator sells solid fuel for or on behalf of the lake dock operator; (g) “Coal” means (1) bituminous coal, including all bituminous, semi- bituminous and sub-bituminous; (2) Virginia anthracite; and (3) Pennsyl¬ vania anthracite; (h) “Solid fuel” means (1) coal; (2) coke; (3) briquets and semi-distilled coal; and (4) packaged fuel: (i) “Ton” means a short or net ton of 2,000 pounds; (j) “Base period” means: the period from July 1, 1948, to June 30, 1949, inclusive; (k) “Realization” is the gross amount of money or value received or debited to the account of the lake dock operator in the sale of solid fuel and shall include the total price charged by the lake dock operator (including commissions to sales agents and discounts to distributors) ; (l) “Open market sales” shall include solid fuel sold, delivered or otherwise disposed of by rail, truck, barge or other method of transportation pursuant to an arms-length transaction and shall not include solid fuel sold or transferred to the retail yard and/or department of a lake dock operator, or controlled sales. “Controlled sales” means sales for con¬ sumption by the buyer (1) where the re¬ lationship between lake dock operator and buyer is that of a wholly-owned or controlled subsidiary and parent corpo¬ ration, or (2) where there is common ownership or control of the lake dock operator and buyer in a third party, or (3) where the relation between lake dock operator and buyer for any similar rea¬ son is such that the sale is non-competi¬ tive, and is generally termed “captive” sales; (m) “Ceiling price” means the high¬ est price applicable to a particular size, grade, grouping or other classification of solid fuel determined in accordance with the provisions of this regulation. Such ceiling price shall include commissions to sales agents and discounts to distrib¬ utors and shall be an f. o. b. dock price. (n) “F .o. b. mine” and “f. o. b. plant” mean free on board transportation fa¬ cilities at a mine, a preparation plant, ovens and other plant or loading facili¬ ties (not including ground storage facili¬ ties). Sec. 3. Prohibition against selling, de¬ livering or otherwise disposing• of. solid fuel at prices above the ceiling. On and after the 1st day of May, 1951, regardless of any contract, agreement, lease or other obligation: (a) No person who is a lake dock operator or distributor shall sell, dispose, deliver or ship solid fuel from a lake dock or facilities operated as an adjunct of a lake dock at prices higher than the ceil¬ ing prices determined in accordance with the provisions of this regulation. (b) No person shall, in the course of trade or business, buy or receive such solid fuel so delivered or shipped at higher prices than the ceiling prices de¬ termined in accordance with the pro¬ visions of this regulation. (c) No person shall agree, offer, solicit, or attempt to do anything pro¬ hibited in paragraphs (a) and (b) of this section. Sec. 4. Ceiling prices and ceiling weighted average realization, (a) The ceiling price for each lake dock (to which this regulation is applicable) for any size, grade, grouping or other classifica¬ tion of solid fuel, as established by pre¬ vious marketing practices, which may be charged under this regulation shall be the highest price received for solid fuel in the same size, grade, grouping, or other classification in the base period or in the period January 1-15, inclusive, 1951. Each lake dock operator shall file a certified statement, by letter, of these ceiling prices, to include such ceiling prices, as are derived from distributors’ sales, with the Director and with the regional office or offices of the Office of Price Stabilization in the area or areas to which the lake dock operator’s solid fuel is shipped, within 30 days after such prices become effective, in accordance with instructions issued by the Director, as provided in section 14 of this regula¬ tion. (b) On and after the effective date of this regulation the prices charged for the solid fuel sold from a lake dock (to which this regulation is applicable) shall be such that the weighted average realiza¬ tion per ton by the lake dock operator for the 12-month period commencing May 1, 1951, and ending April 30, 1952, and for each 12-month period beginning on the first day of each succeeding month, commencing June 1, 1951, shall not exceed the weighted average realiza¬ tion obtained by the lake dock operator from the sale, delivery or other disposal of solid fuel during the base period. (c) The lake dock operator shall de¬ termine his ceiling weighted average realization for the base period for any such dock (1) by dividing the realization received from sales of solid fuel on the open market by the number of tons so sold or (2) by dividing the realization received from the sale of the sizes, grades, groupings or other classifications of solid fuel on the open market by the number of tons so sold. The lake dock operator shall file a certified statement of the ceil¬ ing weighted average realization so de¬ termined with the Director, as required by section 14 (a) of this regulation. (d) The ceiling prices and ceiling weighted average realization determined for a lake dock in accordance with the provisions of this regulation may be in¬ creased as follows: (1) For each size, grade, grouping or other classification of solid fuel sold and delivered by a lake dock operator by an amount not exceeding the actual dollar- and-cents per ton amount of increase in the f. o. b. mine or f. o. b. plant cost on each such size, grade, grouping, or other classification permitted to be charged by the supplier who furnished the prin¬ cipal supply of each such size, grade, grouping, or other classification to the lake dock operator during the lake dock operator’s base period or the 1950 sea¬ son of lake navigation; provided such in¬ creased cost of solid fuel resulted from any wage and salary advances and other items related to the payroll which be¬ came effective on or after January 1, 1951, and which the supplier is author¬ ized to add to his ceiling prices under the provisions of any regulation, supple¬ mentary regulation or amendment there¬ to issued by the Director. (2) Each lake dock operator who is the same person as the supplier may add for each size, grade, grouping or other classification of solid fuel he sells and delivers the per ton amount of increase in the f. o. b. mine or f. o. b. plant price on each such size, grade, grouping, or other classification permitted to be charged (with the same limitation as provided in subparagraph (1) of this paragraph) by the supplier to an inde¬ pendent lake dock operator under the authority of any regulation, supplemen¬ tary regulation or amendment thereto issued by the Director. (3) The authority to increase the ceil¬ ing prices and ceiling weighted average realization as set forth in subparagraphs (1) and (2) of this paragraph on any size, grade, grouping or other classi¬ fication of solid fuel shall be effective upon receipt by the lake dock operator of a written notice of shipment of solid fuel mined or otherwise produced on or after February 1, 1951 from the lake dock operator’s principal supplier dur¬ ing the lake dock operator’s base period or the 1950 season of Jake navigation and a written statement, which shall be furnished by such supplier to the lake dock operator at the dock operator’s re¬ quest, showing the authorized per ton amount of cost increase which such sup¬ plier may add to the price of the appli¬ cable sizes, grades, groupings, or other classifications of solid fuel under the authority of the aforesaid regulations and within the limitations of subpara¬ graphs (1) and (2) of this paragraph. (e) The highest price referred to in paragraph (a) of this section shall be 81 Trans 36:3 separately determined by the lake coal dock operator in accordance with such classification as established by previous ) marketing practices. (f) The ceiling prices to be determined in paragraph (a) of this section and the ceiling weighted average realization to be determined under paragraph (b) of this section may, at the option of the lake coal dbck operator, be determined and established for a group of docks op¬ erated or controlled by a single operator (as distinguished from a particular dock). Sec. 5. Retail sales and dock handling services, (a) A lake dock operator who also sells solid fuels as a retail coal dealer shall exclude all retail sales in determin¬ ing ceiling weighted average realization and ceiling prices under this regulation. (b) Lake coal dock operators who, as a service to other persons, handle, store, and/or prepare solid fuel, charging therefor a service fee on a per-net ton basis, may continue to perform such service: Provided, That the service fee he is authorized to charge shall not be higher than the gross margin he obtains or is permitted to obtain on the sale of his most nearly similar size, grade, grouping or other classification of solid fuel under the terms of this regulation. The amount received from such trans¬ actions may be excluded in determining the ceiling weighted average realization in the base period to this regulation; if such amount received is excluded, it shall also be excluded in the reports of monthly realization on future transac- i' tions. Sec. 6. Procedure for establishing ceil¬ ings on new products, (a) If a partic¬ ular size, grade, grouping, or other clas¬ sification of solid fuel was not sold during the base period or during the period January 1-15, inclusive, 1951, and therefore no specific ceiling price is es¬ tablished therefor, the ceiling price for such size, grade, grouping, or other clas¬ sification shall be determined as follows: (1) If the particular unpriced size, grade, grouping or other classification of solid fuel is a lump size, the ceiling price shall be not more than the lowest ceiling price established for the nearest com¬ parable size of lump solid fuel of the same grade, grouping or other classifi¬ cation. (2) If the particular unpriced size is a double-screened solid fuel, the ceiling price shall be not more than the lowest ceiling price established for the nearest comparable double-screened size of the same grade, grouping or other classifica¬ tion. (3) If the particular unpriced size is a resultant (run of pile, unscreened stoker, slack or screening) size, the ceil¬ ing price shall be not more than the lowest ceiling price for the nearest com¬ parable resultant (run of pile, un¬ screened stoker, slack or screening) size of the same grade, grouping or other classification. i (b) In the event of the mixture of two f or more sizes, grades, groupings or other classifications of solid fuel to which dif¬ ferent ceiling prices are applicable, which mixture was not made during the base period or the period January 1-15, 1951, the ceiling price for such mixture shall be not more than the weighted average of the ceiling prices for each of the com¬ ponent sizes, grades, groupings or other classifications of solid fuel in said mix¬ ture, on a per net ton basis. (c) If a particular size, grade, group¬ ing or other classification of solid fuel was not sold during the base period and therefore no specific ceiling weighted average realization is established there¬ fore, the lake dock operator may file an application seeking the establish¬ ment of a ceiling weighted average real¬ ization that is fair and equitable. The applicant shall clearly set forth the in¬ formation and data deemed necessary to support the application. The Director may request any other information deemed necessary by him to a fair and reasonable determination of the issues raised in the application. Sec. 7. Transportation charges. Where solid fuel is delivered from a lake dock in any transportation facilities owned or subject to the control of the lake dock operator or distributor, or subsidiary or affiliate of the lake dock operator or distributor, in any trans¬ portation facilities hired by the lake dock operator or distributor, there may be added to the applicable ceiling price established herein a sum not in excess of the actual transportation costs in¬ curred by such lake dock operator or distributor, or subsidiary or affiliate thereof, determined in a reasonable manner, but in no event to exceed the lowest common carrier rate, if any, for a haul between the same points: Pro¬ vided, That there may also be added by a producer or distributor, to the ap¬ plicable maximum price established herein, an amount not in excess of the transportation tax imposed by sec¬ tion 620 of the Revenue Act of 1942 if said lake dock operator or distributor incurred such tax and if he separately states the amount of the tax in sales to all purchasers except the United States or any agency thereof, the District of Columbia, any state government or any political subdivision thereof. Sec. 8. Taxes. There may be added to the applicable ceiling price the amount of any sales, gross receipts, gross pro¬ ceeds or use tax levied by any statute or ordinance, under which the tax is measured by gross proceeds or units of sale, only if the statute or ordinance permits or requires the seller to state the tax separately and the seller does state it separately on his invoice or other memorandum of sale, and only if the seller customarily added the amount of such tax to the ceiling price and separ¬ ately stated the tax on his invoices prior to January 15, 1951. Sec. 9. Interest rate 071 overdue ac¬ counts. The rate of interest on overdue accounts or on a note, trade acceptance or other form of indebtedness accepted in payment of an account shall not exceed the rate charged by the seller on similar transactions during the base period. Sec. 10. New operator or owner. Any purchaser, lessee or transferee of a lake coal dock for which ceiling prices and a ceiling weighted average realization have been established shall take the ceil¬ ing prices or ceiling weighted average realization previously assigned to the lake coal dock or other seller, lessor or transferor thereof. Sec. 11. Less than ceiling prices. Lower prices than those established under this regulation may be charged, demanded, paid or offered. Sec. 12. Evasion. The price limita¬ tions set forth ip this regulation shall not be evaded, whether by direct or in¬ direct methods, in connection with an offer, solicitation, agreement, sale, de¬ livery, purchase or receipt of or relating to solid fuel alone or in conjunction with any other commodity or by way of com¬ mission, service, transportation, or other charge, or discount, premium or other privilege, or by tie-in agreement or other trade understanding or by the making of excessive charges for trucking or other¬ wise. Persons subject to the regulation shall continue to observe their custo¬ mary and standard cash discount prac¬ tices. Sec. 13. Sales agents and distributors. No sales agent or distributor shall charge a price f. o. b. dock in excess of the ceil¬ ing price or prices established for such dock or docks under the provisions of this regulation: Provided, That in the event a distributor purchased solid fuel from a dock or docks during the lake coal dock operator’s base period or the period January 1-15, 1951, and resold such solid fuel, said distributor may buy and resell solid fuel from said dock or docks and charge the highest price or prices he received for each size, group¬ ing, grade, or other classification of solid fuel during the aforesaid periods plus any adjustments in price applied to the f. o. b. dock price of such solid fuel: Provided, further, That the distributor files with the Director such reports or records as may be required on forms prescribed and according to instructions issued by the Director. The distributor shall preserve his records to support such reports for a period of two years. Sec. 14. Reporting, invoicing and record-keeping requirements, (a) Each lake coal dock operator shall compute and establish its weighted average real¬ ization during the base period and shall report such realization base to the Di¬ rector within thirty days after the date ceiling prices became effective under this regulation. The report shall be made on forms prescribed and according to instructions issued by the Director. (b) The basis for setting up ceiling prices on particular sizes, groupings, grades and classifications of solid fuels shall be submitted to the Director on forms provided by him in accordance with his instructions within thirty days after this regulation becomes effective. (c) Each lake coal dock operator shall compute its increase or increases in costs in accordance with sections 4 (d) (3) of this regulation on a form and in accord¬ ance with the instructions to be issued 81 Trans 36:4 by the Director within 30 aays after this regulation becomes effective. (d) Ceiling price schedules shall be filed by letter by the lake dock operator with the Director and with the regional office or offices of the Agency in the region or regions where the operator’s solid fuel is shipped, within thirty days after the day such prices become effec¬ tive. Copies of such price schedules shall be open for public inspection. All changes in or new ceiling prices shall be similarly filed. (e) Each lake coal dock operator shall report monthly its monthly realization to the Director on forms provided by him and in accordance with his instruc¬ tions on or before the last day of the month following the month for which the report is being filed. (f) Each person subject to this regu¬ lation shall furnish to each person to whom he sells solid fuel an invoice stat¬ ing the ceiling price established by this part separately from any other charge or a certified statement that the prices charged do not exceed the ceiling prices established under this regulation. (g) Each person subject to this regu¬ lation shall preserve and keep available for inspection by the Director, or his duly authorized representative, for a pe¬ riod of two years, invoices and other sales data and all other records necessary to substantiate base prices, ceiling prices, base period realization, ceiling weighted average realization and monthly average realization established pursuant to this regulation. (h) Whenever a lake coal dock oper¬ ator or distributor increases his price or prices on any size, grade, grouping or other classification of solid fuel above the price or prices charged in the last such sale to a retail coal dealer, the lake coal dock operator or distributor shall, upon request, furnish to each retail coal dealer to whom he sells or delivers solid fuel a statement showing the exact dol- lar-and-cents amount the lake coal dock operator or distributor has added to the price or prices of such size, grade, group¬ ing or other classification of solid fuel. Sec. 15. Petitions for amendment, (a) Any person seeking an amendment of any provision of this regulation may file a petition for amendment in accordance with Subpart D of Price Procedural Reg¬ ulation 1 issued by the Economic Stabili¬ zation Administrator. Sec. 16. Enforcement. Persons viola¬ ting any provision of this regulation are subject to the criminal penalties, and enforcement actions, and suits for dam¬ ages provided for by the Defense Produc¬ tion Act of 1950. Effective date. This regulation shall become effective on the 1st day of May 1951. Note. The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. May 1, 1951. FILE following 81 Trans 36:4 (6-27-52) 81 Trans 36:5 Increased Transportation Cost Ceiling Price Regulation 27 (Amending Sec. 4(d)) Amendment 1 JUNE 27. 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [ Ceiling Price Regulation 27, Arndt. 11 CPR 27—Lake Coal Dock Operators INCREASED TRANSPORTATION COST Pursuant td the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this amend¬ ment to Ceiling Price Regulation 27 is hereby issued. STATEMENT OF CONSIDERATIONS Lake coal dock operators covered by CPR 27 are both wholesalers and re¬ tailers of coal. Because of certain unique characteristics, however, they are covered by a different OPS regula¬ tion from that applying to other re¬ tailers of bituminous coal. Recently retail coal sellers under Sup¬ plementary Regulation 2 to the GCPR were allowed to add to their ceiling prices the increase in their inbound freight costs since January 25, 1951 re¬ sulting from freight rate increases au¬ thorized - by the Interstate Commerce Commission or any other governmental regulatory body. cPor similar reasons, and to remove any possible discrimina¬ tion between these two classes of resell¬ ers of coal, this amendment provides a similar adjustment for lake coal dock operators. In order to maintain the relationship between ceiling prices and ceiling weighted average realization lake coal dock operators may also add the same dollar-and-cents amount of transporta¬ tion cost increases to their ceiling weighted average realization established under CPR 27. In the judgment of the Director of Price Stabilization the provisions of this amendment are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Produc¬ tion Act of 1950, as amended, and to relevant factors of general applicability. In the formulation of this amendment there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, to the extent practicable, and consideration has been given to their recommendations. AMENDATORY PROVISIONS Ceiling Price Regulation 27 is amended in the following respect: 1. Section 4 (d) is amended by adding sub-paragraph (4), as follows: (4) Each lake coal dock operator may increase the ceiling weighted average realization and the ceiling price of each size, grade, grouping or other classifica¬ tion of solid fuel which he sells and de¬ livers under this ceiling price regulation by the exact amount of increase in transportation costs that has or may become effective after January 1, 1951: Provided, Such increase in transporta¬ tion costs was authorized by the Di¬ rector, an order of the Interstate Com¬ merce Commission or any regulatory body of a state, territory or possession of the United States: And provided fur¬ ther, That the authority to increase the ceiling weighted average realization and the ceiling prices of each size, grade, grouping or other classification by the exact amount of increase in transporta¬ tion costs shall be effective only upon receipt by the lake coal dock operator of a carrier’s invoice, freight bill or other statement of transportation charges for each such size, grade, grouping or other classification, reflecting the increased freight charges and required to be paid by the lake coal dock operator. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This Amendment 1 to CPR 27 shall become effective July 2, 1952. Ellis Arnajll, Director of Price Stabilization. June 27, 1952. . ' . , ■ ’ ■ '• . - • ■ u»? * k9tufMipBr . V FILE following 81 Trans 36:4 (1-15-52) 81 Trans 36:9901 0P3 PUBLIC FORM NO. 9 UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D. C. BUDGET BUREAU NO. 94-5123 APPROVAL EXPIRES NOVEMBER 30. 1951 REALIZATION AND ADJUSTED REALIZATION ON LAKE DOCK SOLID FUEL DURING BASE PERIOD OF JULY 1, 1948 THROUGH JUNE 30, 1949 PURSUANT TO CPR 27 The individual company information reported on this form is for use in connection with theDefense Mobi¬ lization Program. Persons who have access to indi¬ vidual company information are subject to penalties for unauthorised disclosure. Submit Original only to the Office of Price Stabilization, Washington 25, D.C. See instructions on reverse side. r "1 n L J j NAME OF DOCK OPERATOR LOCATION OF DOCK(S) MAIL ADDRESS - TONS OF SOLID FUEL SOLD IN OPEN MARKET AND REALIZATION COMPLETE DESCRIPTION - SIZE, GRADE, GROUP OR OTHER CLASSIFICATION ELECTED TONS SOLD OPEN MARKET fol REALIZATION PER TON ADJUSTMENT IN MINE OR PLANT -I COST ld) ADJUSTED REALIZATION (•> TOTAL DOLLARS (b) PER TON (c) (Attaci $ continuation sh $ eets, if neces $ sary. Use ~.ame column ar $ rangement) I certify that the information given in this listing and My attachments is true and correct to the best of my knowledge and belief. NOTICE - A willful false return is a criminal offense. SIGNATURE OF OWNER OR AUTHORIZED REPRESENTATIVE TITLE DATE 81 Trans 36:9902 INSTRUCTIONS FOR THE PREPARATION OF OPS PUBLIC FORM NO. 9 WHO SHALL FILE REPORTS; All lake coal dock operators oa tke United States Bank of Lake Superior and on that part of the west bank of Lake Michigan north of and including Waukegan, Illinois, regardless of size, who sell solid fuels subject to CPU No. 27, are required to file a copy of OPS Public Form No. 9 with the Office of Price Stabilization^Solid Fuels Btanch, Washington 25, D. C., within thirty days of the effective date of CPR No. 27 for each dock, or group of docks, which he operates. COMPUTATION OF CEILING WEIGHTED AVERAGE REAL¬ IZATION: The Ceiling Weighted Average Realization dining the base period may be computed (1) by dividing the reali¬ zation received from the sales of solid fuels on the open market by the number of tons so sold, or (2) by dividing the realization received from the sale of the sizes, grades, group¬ ings or other classifications of solid fuel on the open market by the number of tons so sold. (The basis so elected for the base period must be followed in the monthly reports to be sub¬ sequently filed.) TONNAGE TO REPORT: The tonnage on which realization is to be reported shall include solid fuel sold in the open market by customary methods of transportation. Railroad weights shall be reported for all solid fuel passing over railroad scales. All other solid fuel shall be reported at accurate weights. OPTIONAL TONNAGE: The Lake Dock Operator, at his option, may include his realization Rom dock handling If you elect to file under (1) above, insert in description column, “Total Sales." Enter in Column (a) the total tons of solid fuel sold, less exclusions. Enter in Column (b) the total sales price (Cross Realization as defined above) less ex¬ clusions. Enter in Column (c) the average realization per ton. If you elect to file under (2) above, insert complete de¬ scription of sizes, grades, groupings or other classification of solid fuels adopted in the description column, and follow same procedure for Columns (a), (b), and (c) as in (1) above. To Illustrate, a dock operator may elect to file' his ceiling weighted average realization for each size and kind of coal he sells, or for a classification of coal he sells, or for a grouping of coal he sells. A sample of these possibilities follows; how¬ ever, the dock o per at or may select other variations within the general limits of size, grade, group or other classification. However, whatever size, grade, group or other classification is chosen by him for his base period report must also be used by him iu his future monthly reports. COMPLETE DESCRIPTION-SIZE,GRADE, GROUP OR OTHER CLASSIFICATION ELECTED TONS SOLD OPEN MARKET (o) REALIZATION PER TON ADJUSTMENT IN MINE OR PLANT COST fd) ADJUSTED REALIZATION feV TOTAL DOLLARS (bj PER TON (e) POCOHANTAS ESG 1,000 $14,000 $14.0000 $.40 $14.4000 POCOHANTAS STOVE ’2,000 ■26,000 13-0000 .40 13^4000 POCOHANTAS SLACK 3,000 30,000 30.0000 .40 30.4000 QUALITY BLOCK ’2,000 30,000 15.0000 . 30 15..30Q0 EXCLUDED TONNAGE: The tonnages on which realization is not to be reported include: 1 - Sales of vessel fuel 2 - Retail sales 3 - Controlled sales 4- Sales of coke, briquets, or packaged fuel at the pro¬ ducing level. (SAMPLE A - An example of computing weighted average realization for EACH SIZE AND GRADE of coal) 30,000 123,300 12.3300 .30 $12.6300 15,000 227,250 15.1500 .42 15.5700 .3:2,000 120,600 10.0500 .42 30.4700 HI® VOLATILE LOW VOLATILE PREPARED LOW VOLATILE SLACK (SAMPLE B - An example of computing weighted average realization for CLASS IF !CA TION of coals) Tonnage and total realization figures should be rounded to the should be carried to four places beyond the decimal. whole number, while the weighted average price per ton COMPUTATION OF ADJUSTED CEILING WEIGHTED AVER- AGE REALIZATION: Ceiling Price Regulation No. 27 pro¬ vides for increasing the lake dock operator’s ceiling price and his ceiling weighted average realization by the per ton in¬ crease in the f.o.b. mine or plant cost for the size, made, grouping or other classification permitted to be charged by the supplier who furnished the principal supply used to the extent that the increase results Rom wage and salary adjustments which the supplier is authorized to mid. The lake dock opera- tor must request the amount of permissible increase from his suppliers. The allowable amount should be entered in column (d). The Adjusted Realization, Col. (e) is computed by adding to the actual realization per ton (Col. (c) the per ton adjustment for increased mine or plant costs (Col. (d). The adjusted real¬ ization as computed should be reported on OPS Public Farm No. 12, Monthly Report on Lake Dock Solid Fuel Realization. FILE following 81 Trans 36:9902 (1-15-52) 81 Trans 36:9903 OPS PUBLIC FORM NO. 10 UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D. C. BUDGET BUREAU NO. 94- 5124 APPROVAL EXPIRES NOVEMBER 30. 1951 REPORT OF LAKE DOCK SOLID FUEL CEILING TIm individual coapany information raportad on this PRICES FOR BASE PERIOD OF JULY 1, 1948 f00" *• "*•in •*» OwfanaaMobi- THROUGH JUNE 30. 1949. OR JANUARY 1. 1951 THROUGH JANUARY 15, 1951 for uoairtW’I*d «K*cio»«m. PURSUANT TO CPR 27 Submit Original only to the Office of Price Stabilization, Washington 25, D. C. See instructions on reverse. % “I r 1 L J J NAME OF DOCK OPERATOR LOCATION OF DOCX(S) MAIL ADDRESS HIGHEST PRICES AND ADJUSTED CEILING PRICES COMPLETE DESCRIPTION OF SIZE, GRADE, GROUP OR OTHER CLASSIFICATION ELECTED («) DIMENSION IN INCHES <b> DATE OF SALE <c> HIGHEST PRICE «) PER TON ADJUSTMENT IN MINE OR PLANT COST Ssl ADJUSTED CEILING PRICE (0 (Attach continuation sheets, if necessary. Use same column arrangement) I certify that the information given in this listing and any attachments is NOTICE - A willful false return is a criminal offense. true and correct to the best of my knowledge and belief. SIGNATURE OF OWNER OR AUTHORIZED REPRESENTATIVE TITLE DATE 81 Trans 36:9904 INSTRUCTIONS FOR THE PREPARATION OF OPS PUBLIC FORM NO. 10 WHO SHALL FILE REPORTS: All lake coal dock operators on the United States bank of Lake Superior and on that part of the west bank of Lake Michigan north of and including Waukegan, Illinois, regardless of size, who sell solid fuels subject to CPR No. 27, are required to file a copy of OPS Public Form No. 10 with the Office of Price Stabilization, Solid Fuels Branch, Washington 25, D. C., within thirty days of the effective date of CPR No. 27 for each dock, or group of docks, which he operates. All distributors of lake dock solid fuels who desire to avail themselves of the prices permitted by the proviso of Section 13 of CPR No. 27 are required to file a copy of Public Form No. 10 with the Office of Price Stabilization, Solid Fuels Branch, Washington 25, D. C. within 30 days of the effective date of CPR No. 27. A separate report shall be filed for each dock from which solid fuels are purchased and resoldprovided that a single combined report may be filed for any group of docks operated by a single Lake Coal Dock Operator. The distributor shall report his name and address in addition to the name and address of the Lake Coal Dock Operator. PRICES TO BE REPORTED: Fill out one line for each size, grade, group or other classification for each tonnage on which you propose a ceil ing price and give the following information: A. In Column (a) give the name of the kind and size as commonly used by the trade. B. In Column (b) give dimensions, both top size and bottom size, in inches for solid fuel described in Column (a). C. In Column (c) give the date of your highest priced sale of the type of solid fuel shown in Column (a). D. In Column (d) give that highest price actually charged. L. In Column (e) give the ceiling price adjustment arising from the mine or plant cost increase account wage and salary advances at the mines. (As reported on OPS Public Form No. 11.) F. In Column (f) give your adjusted ceiling price which will be the sum of (d) and (e). \our ceil¬ ing price schedule (to be filed separately by letter with the Office of Price Stabilization, Solid Fuels Branch, Washington 25, D. C., and with the regional office in each region into which you ship solid fuel) will be a recapitulation of your prices shown here. FILE following 81 Trans 36:9904 (1-15-52) 81 Trans 36:9905 OPS PUBLIC FORM NO. I I UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D. C. BUDGET BUREAU NO. 94-3125 APPROVAL EXPIRES NOVEMBER 30, 1951 MINE OR PLANT COST ADJUSTMENT TO BE APPLIED TO REALIZATION BASE AND CEILING PRICE PURSUANT TO CPR 27 The individual company information reported on thi* form is for use in connection with the Defense Mobi¬ lization Program. Persons who have access to indi¬ vidual company information are subject to penalties for unauthr-'-ed disclosure. Submit Original only to the Office of Price Stabilization, Washington 25, D. C. See instructions on reverse side. ~1 r n L_ j _i NAME OF DOCK OPERATOR LOCATION OF DOCK IS J MAIL ADDRESS STATEMENT B4SED ON TONS PURCHASED FROM JULY 1, 1948 THROUGH JUNE 30, 1949 OR THE 1950 SEASON OF NAVIGATION EACH SIZE, GRADE, GROUP OR OTHER CLASSIFICATION SHOWN ON OPS PUBLIC FORMS 9 AND 10 MUST BE LISTED BELOW PRINCIPAL SUPPLIER NAME (a) mine Or Plant NAME OR NUMBER (b) TONS PURCHASED IN ABOVE PERIOD FROM ALL SUPPLIERS l£] PRINCIPAL SUPPLIER _ PERTONADJUST- MENT IN MINE OR PLANT COST (e) (Attach continuation sheets if necessary. Use same column arrangement) I certify that the information given in this listing and any attachments is NOTICE - A willful false return is a criminal offense. true and correct to the best of my knowledge and belief. SIGNATURE OF OWNER OR AUTHORIZED REPRESENTATIVE TITLE DATE 81 Trans 36:9906 INSTRUCTIONS FOR THE PREPARATION OF OPS PUBLIC FORM NO. 11 WHO SHALL FILE REPORTSi AH lake coal dock operators on the United States bank of Lake Superior and on that part of the west bank of Lake Michigan north of and including Waukegan. Illinois, regardless of size, who sell solid fuels subject to CPR No. 27, are required to file a copy of OPS Public Form No. 11 with the Office of Price Stabilization, Solid Fuels Branch, Washington 25, D. C., within thirty days of the effective date of CPK No. 27for each dock, or poup of docks, which he operates. TONNAGE TO BE REPORTED: You must report for each size, grade, group or other classification during either the base period or the year 1950. GENERAL: This form is designed for the reporting of permissible increases in (A) ceiling weighted average realization and in (B) ceiling prices because of mine wage and salary advances. A. ADJUSTMENT OF CEILING WEIGHTED AVERAGE REALIZATION First list in the description column each of the sises, grades, groups or other classifications shown on OPS Public Form No. 9. A. In Column (a) list the name of your principal supplier of each such tonnages. B. In Column (b) insert the mine name or number of such principal supplier. C. In Column (c) list the number of tons of that type purchased from all suppliers. D. In Column (d) list the tonnage of that type purchased from your principal supplier. E. In Column (e) list the per ton increase authorized by OPS to that principal supplier because of his wage and salary advances. This amount will be the amount you are permitted to increase your ceiling weighted average realisation on all of the coals in that size, grade, group or other classifi¬ cation. B. ADJUSTMENT OF CEILING PRICES Next list in the description column each of the sises, grades, groups, or other classifications shown on OPS Public Form No. 10. A. In Column (a) list tbe name of your principal supplier of each ouch tonnages. B. In Column (b) insert the mine name or number of such principal supplier. C. In Column (c) list the number of tons of that type purchased from all suppliers. D. In Column (d) list the tonnage of that type purchased from your principal aupplier. E. In Column (e) list the per ton increase authorized by OPS to that principal supplier because of his wage and salary advances. This amount will be the amount you are permitted to increase your ceiling price of that coal. FILE following 81 Trans 36:9906 (1-15-52) 81 Trans 36:9907 OPS PUBLIC FOM NO. 12 UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25. D. C. BUDGET BUREAU MO. 94.R076 “PROVAL EXP IRES MARCH 31. 1*52 MONTHLY REPORT ON LAKE DOCK SOLID FUEL REALIZATION PIIdcijanT TO CPR 27 The individual company information reported on this farm is for uso in connection with tho Dofansa Mobi¬ lization Program. Parsons who have access to indi¬ vidual company information are subject to penalties 'or unauthorized disclosure. Submit Original only to the Office of Price Stabilization, Washington 25, D. C. See instructions on reverse side. r ~i n L _i j NAME OF DOCK OPERATOR MAIL ADDRESS LOCATION OF DOCK(S) REPORT FOR MONTH OF REALIZATION BY SIZE, GRADE, GROUP, OR OTHER CLASSIFICATION ELECTED COMPLETE DESCRIPTION OF SIZE, GRADE, GROUP OR OTHER CLASSIFICATION ELECTED ('Same as used in report for base period) THIS MONTH’S SAI OPEN MARK -ES IN ET CUMULATIVE SALES IN OPEN MARKET (See instructions) REALIZATION BASE ALLOW- ABLE PER TON (9) TONS («•) TOTAL DOLLARS CHARGED (b) PER TON (c) TONS fd) TOTAL DOLLARS CHARGED <•) PER TON (0 T (Attach % continuation $ sheets, if ne •cessary. U $ sc same column s arrange mt S nt.) I certify fh^t information given in this listing and any attachments is true and correct to the best of my knowledge and belief. NOTICE - A willful false return is a criminal offense. SIGNATURE OF OBINCR OR AUTHORIZED REPRESENTATIVE TITLE DATE 81 Trans 36:9908 INSTRUCTIONS FOR THE PREPARATION OF OPS PUBLIC FORM NO. 12 WHO SHALL FILE REPORTS? All lake coal dock operators on the United States bank of Lake Superior and on that part of the west bank of Lake Michigan north of and including Waukegan, Illinois, regardless of size, who sell solid fuels subject to CPR No. 27, are required to file a copy of OPS Public Form No. 12 with the Office of Price Stabilization, Washing¬ ton 25, 0. C. each month. On the first report there shall be computed the realization obtained from the sale of the subject solid fuels for the month of May 1951. This report must be filed within thirty days after the end of that month. Thereafter a report shall be filed monthly showing the realization obtained in the current month and on a cumulative basis. GENERAL INSTRUCTIONS: This form shall be prepared on the same basis as OPS Public Form No. 9 so that the results obtained in this monthly report will be on a basis comparable to that used in reporting the Realization Base Allowable in OPS Public Form No. 9. CUMULATIVE SALES: Beginning with the month of May 1951, tonnages and toad dollars and per ton realization (Columns (d), (e), and (f)) should be cumulated and per Jon realization computed until a twelve month figure is covered (ending April .30, 1952. Thereafter there shall appear in the cumulative columns figures for the most recent twelve months of which the current month reported shall be one. REALIZATION BASE ALLOWABLE: The realization ceiling or target allowable per ton shall be shown monthly and shall accurately reflect the per ton figure shown on OPS Public Form No. 9. If for some reason the form does not govern the realization base allowable, the authority for such realisation base allowable should be stated on each monthly report. If reali¬ zation base allowable is changed, the most recent realization base allowable should be shown, together with explanation of change. FILE following 81 Trans 36:4 Crude Petroleum (5-11-51) 81 Trans 37:1 Ceiling Price Regulation 32 MAY 7, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 321 CPR 32—Crude Petroleum Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), this Ceiling Price Regulation 32 is hereby issued. STATEMENT OF CONSIDERATIONS When the General Ceiling Price Reg¬ ulation was issued on January 26, 1951, it was realized that a single, compre¬ hensive regulation could hardly cope with the multitude of prices and the di¬ verse practices of many sellers and in¬ dustry. It was, therefore, the express intent of the Director of Price Stabiliza¬ tion to replace the General Ceiling Price Regulation as rapidly as possible with specific price regulations tailored to meet the needs of different industries. Essentially, this regulation provides for the establishment of ceiling prices for all sales and deliveries of crude petro¬ leum by producers, sellers, refiners, or by any other person. The regulation establishes the ceiling price at the receiving tank for crude petroleum from any given pool as the posted purchase price on January 25, 1951, for such pool, or where there was for any pool more than one posted pur¬ chase price then the ceiling price is the highest of the posted purchase prices. Use of the posted purchase price on this date to determine ceiling prices is be¬ lieved equitable, and in conformity with the customary pricing practices of this segment of the petroleum industry. A provision is included which requires every purchaser of crude petroleum to file a report thirty days after the issu¬ ance of this regulation with the Director of Price Stabilization listing the pur¬ chase prices he posted or paid for crude petroleum purchased from each pool. Where no posted purchase price ex¬ isted on January 25, 1951, alternative methods of determining ceiling prices are provided. Special provision is made for certain contract sales in excess of the posted purchase price, provided the con¬ tract was made prior to December 9, 1950, and was in effect on January 25, 1951. The ceiling price so established is ap¬ plicable only to the production covered by the contract. The reason that De¬ cember 9, 1950, was selected as the initial date is that it marked the start of the voluntary freeze on crude petroleum prices requested of the refiners by the Economic Stabilization Agency. Prior to the formulation of this regu¬ lation the Director of Price Stabilization consulted with a large number of persons representing a substantial part of the industry and the regulation has been re¬ viewed by the National Petroleum Ad¬ visory Committee and the Petroleum Ad¬ ministration for Defense. FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the ceiling prices es¬ tablished by this regulation are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950. So far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; to relevant factors of general applicability. REGULATORY PROVISIONS SCOPE OF REGULATION Sec. 1. Applicability of regulation. 2. Exports. 3. Imports. 4. Transfers of business or stock in trade. 5. Adjustable pricing. 6. Petitions for amendment. 7. Application for adjustment. 8. Price revisions incident to orders estab¬ lishing specific prices. 9. Reporting and record-keeping require¬ ments. 10. Prohibitions against selling or deliver¬ ing crude petroleum at prices above the ceiling. 11. Evasion. 12. Enforcement. 13. Definitions. CEILING PRICES 14. Posted purchase price. 15. Two or more posted purchase prices. 16. Contract in excess of posted purchase price. 17. Where no posted purchase price. 18. Where no ceiling price. 19. Sales at points other than receiving tank. 20. Where no differential at points other than receiving tanks. INCREASES PERMITTED OR REDUCTIONS REQUIRED 21. Transportation. 22. Taxes. Authority: Sections 1 to 22 issued under sec. 704, Pub. Law 774, 81st Cong. Inter¬ pret or apply Title IV, Pub. Law 774, 81st Cong., E. O. 10161, Sept. 9, 1950, 15 F. R. 6105; 3 CFR, 1950 Supp. SCOPE OF REGULATION Section 1. Applicability of regula¬ tion. (a) This regulation establishes ceiling prices for all sales and deliveries of crude petroleum by producers, sellers, refiners, or by any other person except: (1) When sold to a processor as gas enrichment oil; (2) When sold to a consumer for a purpose other than the production of more than one petroleum fraction; or (3) When sold to a tank wagon re¬ seller by sellers, other than crude oil operators or royalty owners, for resale to a consumer for a purpose other than the production of more than one petroleum fraction therefrom. (4) This regulation shall in all cases be applicable to sales of crude petroleum to a refiner or to a person using such crude petroleum in oil and gas field op¬ erations, notwithstanding that other¬ wise subparagraphs 1, 2 and 3 of this paragraph would provide an exception. (5) Sales between corporations when one is a wholly owned subsidiary of the other, or when both are wholly owned subsidiaries of a third corporation, and sales between such other affiliated or controlled corporations as are especially excepted by order in writing of the Di¬ rector of Price Stabilization or his duly authorized representative. (6) Exchanges of crude petroleum be¬ tween refiners or other petroleum sellers, providing such exchanges conform to customary practices of the industry dur¬ ing the base period. The Office of Price Stabilization will not grant any increases in the ceiling prices of crude oil or re¬ fined petroleum products where the re¬ quested revision in price is due to the price at which crude oil has been ex¬ changed. (b) Transactions excepted from the coverage of this regulation are also ex¬ empt from the provisions of the General Ceiling Price Regulation. However, cer¬ tain products and transactions excepted from this regulation are covered by Ceil¬ ing Price Regulation No. 17, Gasolines, Naphthas, Fuel Oils and Liquefied Petro¬ leum Gases. (c) The provisions of this regulation are applicable to the United States, its territories and possessions and the Dis¬ trict of Columbia. Sec 2. Exports. The ceiling price at which a person may export crude petro¬ leum shall be determined by this regula¬ tion unless an export regulation shall be issued by this office, in which case ceiling prices for these sales shall be covered by such export regulation. Sec. 3. Imports. [Reserved] Sec. 4. Transfers of business or stock in trade. If the business, assets or stock in trade of any seller or any person are sold or otherwise transferred after Jan¬ uary 25, 1951, the ceiling prices of the transferee shall be the same as those to which his tranferor would have been subject if no such transfer had taken place, and his obligation to keep records and make reports shall be the same. The transferor shall either preserve and make available, or turn over to the transferee records of all transactions prior to the transfer which are necessary to enable the transferee to comply with the records and reports provisions of this regulation and amendments thereto. 81 Trans 37:2 Sec. 5. Adjustable pricing. Any per¬ son may agree to buy or sell at a price which can be increased up to the maxi¬ mum price in effect at the time of de¬ livery. Where a petition for adjustment or amendment is pending the buyer and seller may agree that prices for deliveries made during the pendency of the peti¬ tion shall be determined in accordance with the disposition of the petition. Sec. 6. Petitions for amendment. Any person seeking an amendment of any provision of this regulation may file a petition for amendment in accordance with the provisions of Price Procedural Regulation No. 1. Sec. 7. Applications for adjustment— (a) Local shortages. The Office of Price Stabilization may adjust by order any ceiling price established under this regu¬ lation for a seller or group of sellers or for a general area when it appears: (1) That there exists or threatens to exist in a particular locality a shortage in the supply of crude petroleum which aids directly in the present defense pro¬ gram or is essential to a standard of living consistent with the maintenance of the defense program; and (2) That such local shortage will be substantially reduced or eliminated by adjusting the ceiling prices of such seller and of like sellers for such prod¬ ucts; and (3) That such adjustment will not create or tend to create a shortage, or a need for increase in prices, in another locality, and will effectuate the purposes of the Defense Production Act of 1950. (b) Filing of Applications. Applica¬ tion for adjustment for local shortage shall be filed with the Petroleum Branch of the Office of Price Stabilization, Washington 25, D. C. Sec. 8. Price revisions incident to orders establishing specific prices. Not¬ withstanding the provisions of this regu¬ lation, the Director of Price Stabilization may by written order provide specific ceiling prices to replace ceilings estab¬ lished by this regulation. Sec. 9. Reporting and record-keeping requirements.— fa) Reporting. Thirty days after the issuance of this regula¬ tion, every purchaser of crude petroleum shall file with the Director of Price Stabilization, Washington 25, D. C., a report listing the following information for each pool: (1) Posted purchase prices in effect on January 25, 1951, and date said prices first became effective. (2) Prices paid for purchases during the period December 9, 1950, to January 25, 1951, inclusive, at other than the purchaser’s “posted purchase prices.” This shall include: fi) Prices paid for purchases where the purchaser did not post purchase prices for the production involved. (ii) Prices paid for purchases in ex¬ cess of purchaser’s “posted purchase price.” In this connection the informa¬ tion filed shall specify the production involved and if purchased under a con¬ tract the date of execution of such con¬ tract and the period of such contract. <b) Records. (1) Each producer and purchaser of crude petroleum shall pre¬ serve and keep available for examina¬ tion by the Office of Price Stabilization all records necessary to substantiate ceiling prices established under this regulation. (2) Compliance with these record keeping provisions shall be deemed com¬ pliance with the record keeping require¬ ments of the General Ceiling Price Regulation during the period when crude oil was covered by that regulation. Sec. 10. Prohibitions against selling or delivering crude petroleum at prices above the ceiling. After the date of this order, regardless of any contract or other obligation, no person shall sell or deliver and no person shall buy or re¬ ceive in the regular course of trade or business any crude petroleum at a price higher than the ceiling price established by this regulation. Sec. 11. Evasion. The ceiling prices established by this regulation shall not be evaded whether by direct or indirect methods in connection with the pur¬ chase, sale, delivery or transfer of crude petroleum alone or in conjunction with any other materials, or by way of any commission, service, transportation, or other charge, or discount, premium or other privilege, or by tie-in-agreement or other trade understanding, or by a change in the quality of the product, or otherwise. Sec. 12. Enforcement. Any person who violates any provision of this regu¬ lation is subject to the criminal penalties, civil enforcement actions, and suits for damage provided for by the Defense Pro¬ duction Act of 1950. Sec. 13. Definitions. When used in this regulation the term: (a) “Person” includes any individual, corporation, partnership, association, or any other organized group of persons, or legal successor or representative of any of the foregoing, and the United States or any other government or their politi¬ cal subdivisions or agencies. (b) “Crude petroleum” is considered to be crude petroleum for the purpose of this regulation until put through a bona fide refinery process which results in the production of more than one petroleum fraction. Crude petroleum includes dis¬ tillates and condensates from a well which moves as crude petroleum. (c) “Posted purchase price” means a price schedule posted by a purchaser who, during the period December 9, 1950, to January 25, 1951, inclusive, actually purchased crude petroleum produced from any pool to which the posted price was applicable. (d) “Pool” means any underground accumulation of crude petroleum or associated hydrocarbon substances con¬ stituting a single and separate reservoir or source of supply within a field, area, or horizon whether or not presently dis¬ covered or developed. (e) “Producer” means an operator of an oil lease or royalty owner or any other seller of crude petroleum. (f) “Receiving tank” means the tank of the producer of crude petroleum, sometimes called stock tank or shipping tank, in which the oil from one or more wTells is first gauged or measured for sale, delivery or storage. (g) “Contract" means an agreement, the existence of which is established by written evidence. CEILING PRICES Sec. 14. Posted purchase price. The ceiling price at the receiving tank for crude petroleum from any given pool shall be the posted purchase price as of January 25, 1951, for such pool. Sec. 15. Two or more posted purchase prices. Where there was for any pool more than one posted purchase price, the ceiling price at the receiving tank for crude petroleum from such pool shall be the highest of the posted purchase prices. Sec. 16. Contract in excess of posted purchase price. Where a contract was in effect on January 25, 1951, and was made prior to December 9, 1950, for the purchase of crude petroleum at the re¬ ceiving tank at a price in excess of the highest posted purchase price for the given pool and deliveries were made prior to January 25, 1951, such contracts may be carried out in accordance with the terms of the contract, notwithstand¬ ing any other provision of this regula¬ tion. On termination of the contract it may be extended by the buyer and seller on the same terms, and payments made by the buyer and received by the seller under such circumstances shall not be deemed in excess of ceiling prices not¬ withstanding any other provisions of this regulation. Sec. 17. Where no posted purchase price. Where there was no posted pur¬ chase price for a pool but sales of crude petroleum were made by a producer from the pool, the ceiling price at the receiv¬ ing tank shall be the highest price paid during the period December 9, 1950, to January 25, 1951, inclusive, at any re¬ ceiving tank of that producer in the same pool for crude petroleum of the same quality. If, however, this price was paid pursuant to a contract which did not reflect current market conditions on January 25, 1951, the ceiling price shall be determined by the next pricing section (18). Sec. 18. Where no ceiling price, (a) If the ceiling price for any sale of crude petroleum at the receiving tank can¬ not be determined under sections 14 through 17 of this regulation, the seller or purchaser shall set a tentative price for crude petroleum at the particular receiving tank or tanks which shall be in line with the ceiling prices of com¬ parable crude patroleum in the same general area. Within 15 days after set¬ ting such tentative price the seller or purchaser shall file with the Petroleum Branch of the Office of Price Stabiliza¬ tion, Washington 25, D. C., a written re¬ quest for approval of such tentative price. The person filing such request shall file in connection therewith a statement setting forth: (1) Such tentative price. 81 Trans 37:3 (2) An explanation as to why it is impossible to determine his ceiling price under sections 14, 15. 16, or 17 of this regulation. (3) A description of the available transportation facilities, and a descrip¬ tion of the gravity, characteristics and source of the crude petroleum in question. <b) Such tentative price shall be the ceiling price for crude petroleum pro¬ duced from the same pool until a differ¬ ent ceiling price is set in writing by the Director of Price Stabilization. If a seller and purchaser have agreed upon a price for the sale of crude petroleum sub¬ ject to the approval of the Director of Price Stabilization, a ceiling price deter¬ mined in accordance with this Section 18 shall be effective retroactively to the effective date of this regulation, or the date of the agreement, whichever is later. Sec. 19. Sales at points other than re¬ ceiving tank. The ceiling price for any seller or purchaser of crude petroleum sold at a point other than the receiving tank shall be at no greater differential at such point over the ceiling price for such crude petroleum at the receiving tank than the highest differential that existed on January 25, 1951, between the price at the receiving tank and the price at such point. If, however, a contract in effect on January 25, 1951 established a differential for crude petroleum sold at a point other than the receiving tank which did not reflect current market con¬ ditions on or about January 25, 1951, the differential shall be subject to revision by order of the Director of Price Stabili¬ zation scr that it will reflect current market conditions on or about Janu¬ ary 25, 1951. Sec. 20. Where no differential at points other than receiving tanks, (a) Where a ceiling price at a point other than at the receiving tank cannot be determined under section 19 of this regu¬ lation, the seller or purchaser shall estab¬ lish a tentative differential based on dif¬ ferences in quality and transportation costs for a sale of crude petroleum at such point. Within 15 days after setting such tentative differential the seller shall file with the Director of Price Stabiliza¬ tion, Washington 25, D. C., a written request for approval for such tentative differential accompanied by a statement setting forth: (1) Such tentative differential. (2) An explanation as to why it is impossible to determine his ceiling prices at the particular point under section 19 of this regulation. (3) The location of the source of the crude petroleum in question and of the particular delivery point, and (4) An itemized statement of the costs involved in transporting the crude pe¬ troleum from the receiving tank to the particular delivery point and of any other items comprising the tentative differen¬ tial. (b) Such tentative differential shall be the seller’s maximum differential for the particular sale and for all subsequent sales of crude petroleum from the same receiving tank delivered at that point until a different maximum differential is set in writing by the Director of Price Stabilization. If a seller and purchaser have agreed upon a price for a sale of crude petroleum at a point other than at the receiving tank subject to the ap¬ proval of the Director of Price Stabiliza¬ tion, a maximum differential determined in accordance with this section 20 shall be effective retroactively to January 25, 1951, or the date of the agreement, whichever is later. INCREASES PERMITTED OR REDUCTIONS REQUIRED Sec. 21. Taxes. There may be added to the applicable ceiling prices deter¬ mined under other sections of this regu¬ lation an amount not in excess of any tax increase, or new tax effective after January 25, 1951, imposed upon or inci¬ dent to the production, severance, gathering, sale, transportation, delivery, processing, or use of crude petroleum, except import duties. Effective date: This Ceiling Price Reg¬ ulation shall become effective on May 12, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. May 7, 1951. . ' FILE following 81 Trans 37:3 (8-16-51) 81 Trans 37:301 Fixes Ceiling Price for East Texas Oil Field (Upshur, Gregg, Rusk, Smith and Cherokee Counties) Ceiling Price Regulation 32 Supplementary Regulation 1 AUGUST 13, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [ Celling Price Regulation 32, Supplementary Regulation 1] CPR 32—Crude Petroleum SR 1—EAST TEXAS OIL FIELD (UPSHUR, GREGG, RUSK, SMITH AND CHEROKEE COUNTIES) Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161 (15 P. R. 6195), and Economic Stabilization Agency General Order No. 2 (16 P. R. 738), this supplementary reg¬ ulation is hereby issued. STATEMENT OF CONSIDERATIONS This supplementary regulation issued under section 8 of Ceiling Price Regula¬ tion 32 fixes a specific ceiling price for the East Texas Oil Field. Information has been submitted and evidence pro¬ duced which in the judgment of the Di¬ rector indicates that it is necessary to establish a ceiling price for the East Texas Oil Field under the aforemen¬ tioned section. The Director has determined on the basis of information available to him, in¬ cluding the data and conclusions of fact submitted by a number of purchasers in the East Texas Field, that the ceiling price of $2.65 per barrel at the receiving tank established by this supplementary regulation represents the level of ceiling prices under Ceiling Price Regulation 32. This price is the ceiling price now ap¬ plicable to roughly 96 percent of the pro¬ duction in this major oil field according to information received by the Director. The other 4 percent may continue to be sold at existing slightly higher prices un¬ der section 16 of Ceiling Price Regula¬ tion 32 which authorizes the continua¬ tion of contracts in effect prior to Jan¬ uary 25, 1951. This supplementary reg¬ ulation, however, makes it clear that sec¬ tion 15 of the regulation does not under the circumstances present here enable the 96 percent of the production in this oil field to be sold at the higher prices permissible for the 4 percent. This supplementary regulation does not relieve purchasers in the East Texas Oil Field from compliance with section 9, Reporting and record keeping requirements, of Ceiling Price Regula¬ tion 32. Prior to the issuance of this supple¬ mentary regulation, the Director con¬ sulted with individuals in the area involved and has given consideration to their recommendations. REGULATORY PROVISIONS Sec. 1. Established ceiling price. 2. Relationship to Celling Price Regulation 32. 3. Power to revoke or suspend. Authority: Sections I to 3 issued under sec. 704. Pub. Law 774. 81st Cong.. Pub. Law 96, 82nd Cong. Interpret or apply Title IV, Pub. Law 774. 81st Cong., Pub. Law 96. 82nd Cong.; E. O. 10161, Sept. 9, 1950. 15 P. R. 6105, 3 CFR, 1950 Supp. Section 1. Established ceiling price. The ceiling price for crude petroleum produced from the East Texas Oil Field (Upshur, Gregg, Rusk, Smith and Cherokee Counties), as designated by the Railroad Commission of Texas, is a flat price of $2.65 per barrel at the receiving tank. Sec. 2. Relationship to Ceiling Price Regulation 32. The provisions of this supplementary regulation do not super¬ sede the provisions of section 16 of Ceiling Price Regulation 32. Sec. 3. Power to revoke or suspend. This supplementary regulation or any provision thereof may be revoked, sus¬ pended, or amended by the Director of Price Stabilization at any time. Effective date. This supplementary regulation is effective August 13, 1951. August 13, 1951. Michael v. DiSalle, Director, Office of Price Stabilization. -V -■ ; ' . ,-U ' ■ ■ v ' ■ r ' ■ ■ ... * I ' • J . ■ * '•4 6 :C- ■ ■ ■ - . ' • ; ■ ‘ & . « FILE following 81 Trans 37:301 (10-3-51) 81 Trans 37:401 To Adjust Ceiling Prices When There is Nonconformity in the Same Area, Etc. Ceiling Price Regulation 32 Supplementary Regulation 2 OCT. 3. 1951 OFFICE OF PRICE STABILIZATION TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter ill—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [ Ceiling Price Regulation 32, Supplementary Regulation 2] CPR 32—Crude Petroleum SR 2-HOW TO ADJUST CEILING PRICES WHEN SUCH CEILING PRICES ARE NOT IN CON¬ FORMITY WITH CEILING PRICES IN THE SAME GENERAL PRODUCING AREA FOR COM¬ PARABLE CRUDE PETROLEUM Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161 (15 P. R. 6105), and Economic Sta¬ bilization Agency General Order No. 2 (16 P. R. 738), this supplementary regu¬ lation is hereby issued. STATEMENT OF CONSIDERATIONS This Supplementary Regulation estab¬ lishes an adjustment procedure whereby the purchaser or seller of crude petro¬ leum in oil fields or pools which are frozen at ceiling prices below the in¬ line ceiling price for comparable crude petroleum produced in the same general producing area may make application for an adjustment of his ceiling price. This is necessary because in the early stages of production in a new field or pool the producer must usually accept a lower price for his crude petroleum than that which he ordinarily receives when full production is attained and di¬ rect transportation facilities become available and competitive factors de¬ velop. At the time of the general freeze, there were numerous relatively new fields or pools in the same general producing area producing comparable crude petroleum. Ceiling prices in these oil fields or pools were frozen at levels below the in-line ceiling price for the same general pro¬ ducing area, because (1) full produc¬ tion had not been attained, or (2) in¬ stallation of adequate low-cost trans¬ portation was not then available, or (3) there was a lack of competitive factors, or (4) there was a temporary excess sup¬ ply of heavy crude petroleum, or (5) there were other factor^ which tended to prevent a normal price adjustment. Purchasers or sellers in such fields are unable, under Ceiling Price Regulation 32 as it now stands, to obtain adjust¬ ments to establish in-line prices. This Supplementary Regulation, however, will allow purchasers or sellers in these af¬ fected areas to make application for ad¬ justment of their ceiling prices. In the formulation of this supplemen¬ tary regulation, special circumstances have made it impractical to consult with the official industrial advisory commit¬ tee; however, a number of individuals from the industry were consulted by the Director prior to the issuance of this WASHINGTON supplementary regulation and consider¬ ation was given to their recommenda¬ tions. In the judgment of the Director, the provisions of this amendment are fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. So far as practicable, the Director has given due consideration to the national effort to achieve maximum production in the furtherance of the objectives of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. What this supplementary regulation does. 2. Applicability of this supplementary reg¬ ulation. 3. How to adjust ceiling prices for oil fields or pools in the same general producing area for comparable crude petroleum. 4. Applicability of Ceiling Price Regulation 32. Authority: Sections 1 to 4 issued under sec. 704, Pub. Law 774 , 81st Cong., Pub. Law 98, 82nd Cong. Interpret or apply Title IV, Pub. Law 774, 81st Cong., Pub. Law 96, 82nd Cong.; E. O. 10161, Sept. 9, 1950, 15 F. R. 6105, 3 CFR, 1950 Supp. Section 1. What this supplementary regulation does. This supplementary regulation permits a purchaser or seller to apply for an adjustment of his ceil¬ ing prices for certain oil fields or pools which are frozen at ceiling prices below the in-line ceiling price of comparable crude petroleum in the same general pro¬ ducing area. This adjustment procedure can be used only when an oil field or pool was frozen at a ceiling price which was not in line with the ceiling price of com¬ parable crude petroleum in the same general producing area. This section is intended only as a gen¬ eral description to aid in understanding this supplementary regulation; the fol¬ lowing sections are controlling. Sec. 2. Applicability of this supple¬ mentary regulation. This supplemen¬ tary regulation applies only to purchas¬ ers or sellers in oil fields or pools which have been frozen at prices below the in¬ line ceiling price for comparable crude petroleum in the same general produc¬ ing area and who now, due to normal in¬ dustry practice should be allowed to ad¬ just their prices up to the in-line ceil¬ ing price of comparable crude petroleum in the same general producing area. Sec. 3. How to adjust ceiling prices for oil fields or pools in the same general producing area for comparable crude petroleum, (a) In oil fields or pools frozen at below the in-line ceiling price for comparable crude petroleum in the same general producing area, the pur¬ chaser or seller may make application for an adjustment of his ceiling price at the receiving tank which shall be in line with the ceiling price of comparable crude petroleum produced in the same general producing area. An applicant when making an application for adjust¬ ment cannot use ceiling prices deter¬ mined by Sections 16 and 17 as a basis for determining the in-line ceiling price of comparable crude petroleum in the same general producing area. The per¬ son making such application for adjust¬ ment shall file said application with the Petroleum Branch, Transportation, Pub-: lie Utilities and Fuels Division, Office of Price Stabilization, Washington 25, D. C. In connection therewith he shall include a statement setting forth briefly: (1) Such new ceiling price. (2) An explanation as to why his ceil¬ ing price under Sections 14, 15, 16, 17, or 18 of this regulation has been estab¬ lished at a price which is not in line with the ceiling price of comparable crude petroleum in the same general produc¬ ing area. (3) A description of the available transportation facilities and a descrip¬ tion of the gravity, characteristics and source of the crude petroleum in ques¬ tion and evidence to indicate that the adjusted ceiling price will be in line with the ceiling price of comparable crude petroleum in the same general producing area. (b) Upon receipt of an application for an adjustment for an in-line ceiling price of an oil field or pool which is pro¬ ducing crude petroleum of comparable quality from the same general produc¬ ing area, the Director shall either ap¬ prove or disapprove the proposed in-line ceiling price. If an application for ad¬ justment is disapproved, the Director may establish a substitute price. A ceil¬ ing price established under this section may be changed at any time by order of the Office of Price Stabilization. If a seller and purchaser have agreed upon a price for the sale of crude petroleum sub¬ ject to the approval of an application for adjustment by the Director of the Office of Price Stabilization, and said applica¬ tion is granted, the ceiling price agreed upon shall be effective retroactively to the effective date of this regulation or to the date of the agreement, whichever is later. Sec. 4. Applicability of provisions of Ceiling Price Regulation 32. Except to the extent expressly modified or supple¬ mented by this supplementary regula¬ tion all provisions of Ceiling Price Regu¬ lation 32 shall remain in full force and effect. Effective date. This supplementary regulation is effective October 9, 1951. Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget in ac¬ cordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director, Office of Price Stabilization. October 3, 1951. ■ i <■ ■ a ( , ' - ■ ■ . . > ' ' •-#. . r- ' ■ ’ ' •’ 1 ' I' . ' ‘I;'- • . i i ' FILE following 81 Trans 37:3 Lubricating Oils, Greases, Waxes, Etc (8-7-51) 81 Trans 38:1 Ceiling Price Regulation 63 JULY 30, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON (K**i>rinte<l from the Federal Register of August 3, 1!)51 ] TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency I Celling Price Regulation 63 ] CPR 63—Lubricating Oils, Greases, Waxes and Certain Other Petroleum Products Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency Gen¬ eral Order No. 2 (16 F. R. 738), this Ceil¬ ing Price Regulation 63 is hereby issued. STATEMENT OF CONSIDERATIONS This regulation is the fourth to be is¬ sued by the Office of Price Stabilization covering petroleum products. It applies to wholesale sales of stock lubricating oils, industrial lubricating oils, waxes, petrolatums, and all other petroleum products which are not covered by other price regulations except asphalt and asphalt products which will be covered by a separate regulation. The market¬ ing of these products represents a suffi¬ ciently particularized and segregated aspect of the petroleum industry to make desirable, from the standpoint of efficient administration, the issuance of a sepa¬ rate regulation. This view is concurred in by representative members of the petroleum industry. The regulation is of the formula- freeze type, but it is the intent of the Director of Price Stabilization to spell out specific dollar and cents prices for stock lubricating oils, waxes and petro¬ latums in principal marketing centers as quickly as studies now under way are completed. The ceiling prices estab¬ lished by this regulation are substan¬ tially the same as those provided by the General Ceiling Price Regulation. In common with the other specific regula¬ tions issued to date covering the prod¬ ucts of the petroleum industry, the base period of December 19, 1950, to January 25, 1951, inclusive is adopted. The reasons for the selection of this base period are set forth in the Statement of Considerations issued with Ceiling Price Regulation 17. Also, as distinguished from the General Ceiling Price Regula¬ tion, this regulation defines the highest price charged during the period Decem¬ ber 19, 1950, to January 25, 1951 inclu¬ sive, in such a way as to exclude from use in the calculation of ceiling prices sales made in the afore-mentioned base period pursuant to pre-existing con¬ tracts which were not adjustable to re¬ flect market conditions at or about dates of deliveries thereunder. This provi¬ sion embodies the principle of establish¬ ing ceiling prices on the basis of current market conditions prevailing in the base period. A segment of the petroleum industry affected by this regulation purchases large quantities of non-petroleum prod¬ ucts including agricultural commodities such as tallow, lard, castor oil and lin¬ seed oil. These commodities are used in compounded petroleum products for a wide variety of automotive and indus¬ trial applications. Due to substantial increases in the costs of these products and of shipping containers representing a significant element of cost to the in¬ dustry, substantial reductions of margins have resulted since June 1, 1950. Rep¬ resentations have been made to the Office of Price Stabilization that failure to pro¬ vide for adjustments in ceiling prices because of such increased costs might result in an interruption in the supply of many industrial lubricants vital to the defense effort. Moreover, since June, sellers have not priced uniformly on the basis of their increased costs. Many companies, particularly those working on short inventories, advanced their selling prices in conformity with their new costs. Other companies did not, but as a result of such higher costs many of these were contemplating changes in their selling prices during November and December to be made effective early in 1951. There is normally a time lag of between 60 and 90 days between pro¬ nounced changes in costs and their re¬ flection in selling prices by this segment of the industry. On December 18, 1950, the Economic Stabilization Agency made a request of 31 principal refiners to hold in abeyance voluntarily any contem¬ plated price increases pending the com¬ pletion of price analyses of the industry. This request for voluntary cooperation was extensively publicized by industry trade journals and compliance appears to have been general. Consequently, with the issuance of the General Ceiling Price Regulation, a number of tradi¬ tional price relationships which were distorted during this period were frozen into ceilings. To correct this situation, the regulation permits sellers to apply for an adjustment of their ceiling prices when, due to temporary conditions, such ceiling prices are either inconsistent with their customary pricing practices or their customary price relationship to other sellers of their class. The regulation also makes provision to allow a refiner, blender or compounder whose total costs of components of a product on March 15, 1951, exceed by more than 5 percent such costs on June 1, 1950, because of a change in the costs of the purchased components entering directly into the product and/or the non- returnable container used for shipping such product, to modify his ceiling price for the product to reflect the dollar and cents increased costs of purchased com¬ ponents and/or non-returnable contain¬ ers. However, this adjustment is sub¬ ject to the proviso that in computing the amount that may be added to ceiling prices there shall be deducted from the increased costs the amount by which the seller’s ceiling price on March 15, 1951, exceeds his selling price on June 1, 1950. The effect of this provision is to restore and maintain dollar and cents margins in existence during the period immediately prior to the outbreak of hostilities in Korea for a large number of compounded petroleum products. It also substantially reduces an existing distortion in the price relationship between compounded and uncompounded products of the industry. In adopting the stipulation that the in¬ crease or decline in costs shall be more than 5 percent before a change in ceiling prices may be made or required, the Di¬ rector of Price Stabilization gave consid¬ eration to the desirability of preventing every change in cost, no matter how in¬ finitesimal, from being reflected in ceil¬ ing prices and to the customary practice of the petroleum industry of maintaining stable consumer prices within tolerable limits of cost variations. However, it is recognized that in some cases the 5 percent requirement may result in a dis¬ tortion in the customary price relation¬ ships maintained by a seller on a given line of petroleum products. Accordingly, any seller who believes that meeting this requirement is a cause of such distortion may request that consideration be given to the special circumstances involved. The above formula differs from that used in Ceiling Price Regulation 22 in several respects. Under Ceiling Price Regulation 22 sellers establishing their ceiling prices adjust their pre-Korean prices by adding to such prices an ad¬ justment factor to reflect advances in labor and material costs. This is de¬ signed to preserve pre-Korean margins and to eliminate inflationary price in¬ creases not justified by cost increases in the post-Korean period. The adjust¬ ment procedure incorporated in this reg¬ ulation allows a seller the choice of adopting either his base period ceiling price for a particular compounded prod¬ uct or of adjusting his June 1, 1950, selling price for the increased costs of purchased components and/or contain¬ ers since that date. In computing in¬ creased costs, no allowance may be made for labor costs or increases in manufac¬ turing costs of products directly pro¬ duced from a seller’s own refinery. Thus, the formula is narrower than the one in Ceiling Price Regulation 22. In adopting this limited adjustment factor, the Director was guided by the extreme difficulty of ascertaining a generally ac¬ ceptable basis for allocating costs of products produced in a multiple prod¬ ucts refinery. It is customary industry practice to impute a value to its products, such imputation being predicated on market values rather than cost. Be¬ cause of this arbitrary costing method, it was deemed impracticable to reflect 81 Trans 38:2 in total cost the changes in these im¬ puted values since the pre-Korean period. It was deemed undesirable for this reason, among others, to require a recalculation of all ceiling prices as pro¬ vided by Ceiling Price Regulation 22. Such a recalculation would necessitate the adoption of arbitrary cost imputa¬ tions to determine total cost changes. Also, to require reductions where price changes exceed the increases in the costs of purchased components or containers alone would be impractical because such price changes may have reflected total cost changes not accounted for in the formula. The regulation also authorizes the ad¬ dition to ceiling prices of transportation rate increases occurring between Jan¬ uary 26, 1951, and May 15, 1951, in¬ clusive, which have been authorized by Federal or State regulatory bodies or the Office of Price Stabilization. This pro¬ vision has been adopted because trans¬ portation charges represent a significant element of cost in the case of many products governed by this regulation due to the long distances over which they are transported, often in small volume. Moreover, such products are frequently sold on narrow margins which are in¬ sufficient to allow marketers to absorb transportation rate increases. One of the more serious problems con¬ fronting the petroleum industry is the growing scarcity of steel containers which are indispensable to the distribu¬ tion of petroleum products. Customarily the petroleum industry sells a substantial portion of its products on a non-return¬ able drum basis. It has now become im¬ perative that drums be returned to primary sellers, necessitating that such sellers shift from a non-returnable to a returnable drum basis. Since drums had a value during the base period to pur¬ chasers who are now required to return them, it is equitable that an allowance be made to such purchasers for the loss of value involved. Such value was vari¬ able depending upon the disposition in¬ dividual purchasers made of these drums, and it is not possible to ascertain such values with any degree of accuracy. In the judgment of the Director of Price Stabilization, it is desirable that these values be specific and uniform and in conformity with the ceiling prices estab¬ lished for raw used drums purchased by container reconditioners. The specific allowances set forth in this regulation conform, therefore, to the ceiling prices as established for raw used drums under Ceiling Price Regulation 36, Used Steel Drums, effective May 16, 1951. At the present time there exists a vari¬ ance among suppliers in their ceiling deposit charges for returnable drums. Provision is made in the regulation to allow a uniform deposit charge of $10 for 55-gallon steel drums and lesser ap¬ propriately related amounts for smaller size drums. This is designed to make possible a uniform deposit system for the petroleum industry and to provide a maximum deposit charge for sellers who since the base period have converted from a non-returnable drum basis to a returnable drum basis. The deposit charges are higher, in some instances, than actually charged by suppliers dur¬ ing the base period, but under prevailing circumstances such higher deposits ap¬ pear warranted. Moreover, although these deposit charges are also higher than replacement cost, they are not so high that they may be considered sus¬ ceptible to evasive use. A characteristic feature of the seg¬ ment of the industry covered by this reg¬ ulation is the large number of new prod¬ ucts it constantly introduces to improve industrial processes and to meet novel and exacting engineering requirements. In establishing new product pricing methods and procedures, convenient and, where possible, practically auto¬ matic pricing mechanisms are provided for reaching sound results. The regula¬ tion contains three methods for estab¬ lishing ceiling prices for new products. (1) Minor differences method. For any new product that differs from a product for which a ceiling price has been established under the regulation only by reason of minor differences in composition which do not prevent its offering substantially equivalent service¬ ability, the ceiling price for such prod¬ uct shall be the same as the ceiling price for the product from which it differs only because of such minor changes. Specifi¬ cally, if the minor changes do not reduce or increase the cost of the product for which a ceiling price has been estab¬ lished by more than 5 percent and if the new product will render substantially equivalent serviceability, the ceiling price remains unchanged. Sellers pric¬ ing under this provision are not required to file with the Office of Price Stabiliza¬ tion since it is the intent of the Office of Price Stabilization to reduce the report¬ ing burden both on industry and govern¬ ment whenever possible. The require¬ ment of “substantially equivalent serviceability” is intended to preclude the risk of product deterioration which may not be reflected in ceiling prices. At the same time, the provision makes possible changes of an inconsequential nature, either to meet more perfectly an engi¬ neering requirement or because identical components are not available, without disturbance of ceiling prices. By fur¬ ther requiring that the difference in cost shall be confined to 5 percent, a greater degree of price stability is assured. How¬ ever, provision is made for sellers who believe that a hardship results from this requirement to use the ‘ Comparable Products Margin Method” of pricing. (2) Comparable Products Margin Method. This method permits a seller who cannot price under other provisions of the regulation to determine his ceiling price on the basis of the average of the percentage mark-ups on two of the sell¬ er’s comparable products on which he has established ceiling prices. The seller chooses his two most comparable prod¬ ucts, one next lower in cost and one next higher in cost; calculates the percentage markup included in the ceiling price of each product; takes an average of these two percentage mark-ups, and uses this figure in determining his mark-up in the new ceiling price. Comparability of products is deter¬ mined on the basis of similarity of end use and proximity of costs. Two prod¬ ucts are of similar end use if sold for the same general purpose such as motor oils, gear lubricants, quenching oils. However, consideration is to be given to products of similar specifications and composition. Having similar end use, products may be considered comparable if their costs do not vary by more than 20 percent. For resellers, current delivered costs of the products are to be used as costs in making comparisons. For blenders and compounders, the costs to be used are current delivered costs of components. For refiners on the other hand, while using current delivered costs for the components they purchase, some other value factor must be used for components they produce. It is recognized that it is not possible to determine the actual cost of a product produced in a multiple prod¬ uct refinery. Therefore, in evaluating such a component, the refiner must use the refinery value, inventory value, works billing price, or some other appropriate value which has been imputed to the component during the base period as evi¬ denced by accounting records maintained for this purpose. This value factor must have been customarily used for evaluat¬ ing the components of the new product as well as for the comparable products. Al¬ though the use of this method will not always result in 100 percent accuracy in determining margins, particularly when the proportion of purchased to produced components varies greatly for the prod¬ ucts being compared, it nevertheless pro¬ vides as satisfactory a method as possible for the purpose of determining new ceiling prices under this provision, and will result in ceiling prices which are in line with other prices established by the regulation. A form is provided for re¬ porting to the Office of Price Stabilization ceiling prices established by this “com¬ parable products margin method. ” Upon filing the price determined by use of this method, the price so established is the seller’s ceiling price until changed or dis¬ approved by the Office of Price Stabiliza¬ tion. (3) Final Pricing Method. When the “comparable products margin method” cannot be used, the seller is permitted to establish a ceiling price in line with the level of ceiling prices otherwise estab¬ lished by this regulation. In substan¬ tiation thereof, the seller is required to submit certain specified information. In establishing the foregoing pricing methods and procedures, the Director of Price Stabilization has given careful consideration to their adaptation to the customary practices of the industry so as to provide as flexible an instrument as possible within the general context of price controls. Prior to the formulation of this regu¬ lation the Director of Price Stabilization advised v/ith a large number of persons representing a substantial part of the industry and the regulation has been re¬ viewed by the Petroleum Industry Ad¬ visory Committee fofc Lubricating Oils, Industrial Oils, Waxes and Petrolatums established by the Director of the Office of Price Stabilization. i i i i i t 81 Trans 38:3 FINDINGS OF THE DIRECTOR OF PRICE STABILIZATION In the judgment of the Director of Price Stabilization the ceiling prices established by this regulation are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950. As far as practicable the Director of Price Stabilization gave due considera¬ tion to the national effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950; to prices prevailing during the period from May 24, 1950, to June 24, 1950, inclusive; and to relevant fac¬ tors of general applicability. REGULATORY PROVISIONS SCOPE OF THE REGULATION Sec. 1. Products covered and excluded. 2. Experimental sale. 3. Transactions and persons covered. 4. Geographical coverage. 5. Imports. 6. Transfers of business or stock In trade 7. Adjustable pricing. 8. Petitions for amendment. 9. Applications for adjustment. 10. Price revisions incident to orders estab¬ lishing specific prices. 11. Shifts which must be reported. 12. Records. 13. Compliance with this regulation required. 14. Definitions. CEILING PRICES 15. Specific ceiling prices for certain stock oils in bulk lots. 16. Formula prices. 17. Seller unable to determine ceiling price. INCREASES PERMITTED OR REDUCTIONS REQUIRED 18. Transportation. 19. Taxes. 20. Changes in the costs oi purchased prod¬ ucts, components, and/or containers. 21. Containers. Authority: Sections 1 to 21 issued under sec. 704, Pub. Law 774, 81st Cong. Interpret or apply Title IV, Pub. Law 774, 81st Cong., E. O. 10161, Sept. 9, 1950, 15 F. R. 6105. SCOPE OF THE REGULATION Section 1. Products covered and ex¬ cluded. (a) This regulation covers the following products: Lubricating stock oils. Engine crankcase oils. Aviation engine oils. Marine lubricating oils. Railroad lubricating oils. Industrial lubricating oils. Lubricating greases. Core oils. Mineral seal oil. Petroleum coke. Petroleum resins. White oils. Household lubricating oils. Upper cylinder lubricants and other specialty lubricants. Cutting oils. Process oils. Microcrystalline and paraffin waxes. Petrolatums. Insecticidal base oils. Naphthenic acids. Mercaptans from petroleum. Sulfonic acids from petroleum. Crude sulfonates from petroleum. Cresylates from petroleum. Cresyllc acids from petroleum. Special liquid hydrocarbon polymers. Acid sludges from petroleum. Processed oils and compounds where the non-aqueous content Is 50 percent or more of one of the foregoing. All other petroleum products not Included In other specific price regulations relating to petroleum products. (b) The following products are specif¬ ically excluded from this regulation: Chemicals derived from natural gas or pe¬ troleum hydrocarbons by catalytic or chemical conversion. Resinous, viscous and elastic hydrocarbon polymers. Hydrogen sulfide. Products containing a major portion of pe¬ troleum derivatives primarily produced by non-petroleum Industries. Asphalt and asphalt products. Ceiling prices for these products are to be determined by the following regula¬ tions whichever is by its terms applica¬ ble: The General Ceiling Price Regula¬ tion, Ceiling Price Regulation No. 17, Ceiling Price Regulation No. 22, or any other specific price regulation which may hereafter be issued covering these products. Sec. 2. Experimental sale. The first sale to one or more companies for experi¬ mental purposes of any product covered by this regulation is exempt from afi ceiling price regulations and orders. Sec. 3. Transactions and persons covered. This regulation covers all types of sales and deliveries of products covered by this regulation either by re¬ finers, blenders, resellers, or any other person except the following: (a) Retail sales. Retail sales at re¬ tail establishments, including transac¬ tions through stationary retail facilities which are in conjunction with bulk plants, terminals, refineries, or wholesale establishments. (b) Exchanges. Exchanges of petro¬ leum products between refiners and other petroleum sellers, provided such exchanges conform to customary prac¬ tices of the industry during the base pe¬ riod. Such exchanges are also exempt from all ceiling price regulations. The Office of Price Stabilization will not grant any increases in the ceiling prices of petroleum products covered by this reg¬ ulation where the requested revision in price is due to the price at which such products have been exchanged. (c) Subsidiaries. Sales between cor¬ porations when one is a wholly-owned subsidiary of the other, or when both are wholly-owned subsidiaries of a third corporation, and sales between such other affiliated or controlled corporations as are especially excepted by order in writing by the Director of Price Stabili¬ zation or his duly authorized represent¬ ative, provided prices at which such sales are made do not affect the level of existing ceiling prices. Such sales are also exempt from all ceiling price regu¬ lations. Sec. 4. Geographical coverage. The provisions of this regulation are applica¬ ble to the United States, its territories and possessions and the District of Co¬ lumbia. Sec. 5. Imports. Ceiling prices in this regulation shall apply even though the product involved originated outside of the area covered by the regulation and was imported into such area. Sec. 6. Transfers of business or stock in trade. If the business, assets or stock in trade of any business are sold or other¬ wise transferred after January 26, 1951, and the transferee carries on the busi¬ ness or continues to deal in the same type of products in an establishment separate from any other establishment previously owned or operated by him, the ceiling prices of the transferee shall be the same as those to which his trans¬ feror would have been subject if no such transfer had taken place, and his obli¬ gation to keep records sufficient to verify such prices shall be the same. The transferor shall either preserve and make available or turn over to the trans¬ feree all records of transactions prior to the transfer which are necessary to en¬ able the transferee to comply with the record provisions of this regulation. Sec. 7. Adjustable pricing. Any per¬ son may agree to sell at a price which can be increased up to the ceiling price in effect at the time of delivery; but no person may, unless authorized by the Office of Price Stabilization, deliver at prices to be adjusted upward in accord¬ ance with action taken by the Director after delivery. Such authorization may be given when a request for a change in the applicable ceiling price is pending, but only if the authorization is necessary to promote distribution or production and if it will not interfere with the pur¬ poses of the Defense Production Act of 1950. The authorization may be given by the Director or by any official of the Office of Price Stabilization to whom the authority to grant such authorization has been delegated. The authorization will be given by order, except that it may be given by letter or telegram when the contemplated revision will be the granting of an individual application for adjustment. Sec. 8. Petitions for amendment. Any person seeking an amendment of any provision of this regulation may file a petition for amendment in accordance with the provisions of Price Procedural Regulation No. 1. Sec. 9. Applications for adjustment. (a) The Director of Price Stabilization may adjust by order any ceiling price established under this regulation for a seller when it appears: (1) Price inequities, (i) That due to temporary conditions a seller has a ceil¬ ing price which is not in line with his customary pricing practice or with his customary price relationship with other sellers in the same marketing area. (b) The seller applying under para¬ graph (a) (1) of this section shall show to the satisfaction of the Director: (1) The basis upon which it is con¬ cluded that the ceiling prices are below normal, with a statement of how long the inequity has been in existence. (2) The ceiling prices proposed. (3) Information supporting why the proposed ceiling prices would be normal. (4) A statement that the proposed ceiling prices will be in line with the level of ceiling prices otherwise established by the regulation. 81 Trans 38:4 (5) Applications for adjustment for price inequities shall be filed with the Petroleum Branch, Office of Price Stabi¬ lization, Washington 25, D. C. Sec. 10. Price revisions incident to orders establishing specific prices. The Director of Price Stabilization may by supplementary regulation or by special order of general applicability establish specific ceiling prices or otherwise modify the provisions of this regulation with re¬ spect to certain products, transactions or geographical area. Sec. 11. Shifts which must be re¬ ported. Where a seller has established a ceiling price on a delivered-at-destina- tion basis at a given point for a particu¬ lar petroleum product to a purchaser and thereafter sells such purchaser on an f. o. b. shipping point price basis, he shall report such shift to the Director of Price Stabilization within thirty days after the date such sale is made if the effect of selling on an f. o. b. shipping point price basis is to increase the laid-down cost to the purchaser above the seller’s de- livered-at-destination ceiling price to such purchaser. However, a seller may not shift to an f. o. b. shipping point price basis unless he has an f. o. b. shipping point ceiling price properly determined under the appropriate provisions of this regulation. The Director of Price Stabi¬ lization may by special order modify the terms and provisions applicable to such sales when in his judgment, the reported shift constitutes an evasion of the pur¬ poses of this regulation. Sec. 12. Records—(a) Record-keep¬ ing requirements. (1) With respect to any commodity covered by this regula¬ tion the provisions of section 16 of the General Ceiling Price Regulation are hereby continued in effect insofar as they apply to the preparation and pres¬ ervation of “base period records’’ and such “current records’’ as have been made as a result of sales between Janu¬ ary 26, 1951, and the effective date of this regulation.1 2 3 4 1 The portions of the General Ceiling Price Regulation here referred to are as follows: Sec. 16. (a) Base period records. You must preserve and keep available, for ex¬ amination by the Director of Price Stabi¬ lization those records in your possession showing the prices charged by you for the commodities or service which you delivered or offered to deliver during the base pe¬ riod. • * * (2) In addition, on or before March 22, 1951, you must prepare and preserve a state¬ ment showing the categories of commodities in which you made deliveries and offers for delivery during the base period. * * » (3) On or before March 22, 1951, you must also prepare and preserve a celling price list, showing the commodities in each category (listing each model, type, style, and kind), or the services, delivered or offered for deliv- ery by you during the base period together with a description or identification of each such commodity or service and a statement of the ceiling price. Your ceiling price list may refer to an attached price list or cata¬ log. * • • (4) You must also prepare and preserve a statement of your customary price differ¬ entials for terms and conditions of sale and classes of purchasers, which you had in ef¬ fect during the base period. * * * (2) (i) You shall prepare and preserve for the life of the Defense Production Act of 1950 and for two years thereafter all records necessary to determine whether you have computed your ceiling prices correctly, including (but not lim¬ ited to) records showing base period prices and product costs, and records showing costs, prices, and sales for the other applicable periods and dates re¬ ferred to in the regulation. (ii) The records to be preserved un¬ der this paragraph must include appro¬ priate work sheets. The work sheets may be in any convenient form so long as they include all data and calculations required to determine your ceiling prices. (3) You shall preserve for a period of two years all records showing the prices at which sales of commodities subject to the regulation have been made. Sec. 13. Compliance with this regula¬ tion required—(a) Prohibitions against selling or delivery of petroleum products at prices above the ceiling. On and after the effective date of this regulation re¬ gardless of any contract or other obliga¬ tion, no person shall sell or deliver and no person shall buy or receive in the course of trade or business any petro¬ leum product covered by this regulation at prices higher than the ceiling prices fixed by this regulation, and no person shall agree, offer, solicit, or attempt to do anything prohibited in this section. Prices lower than the ceiling prices may be charged, demanded, paid or offered. (b) Customary price differentials. The ceiling prices determined under this regulation shall reflect customary price differentials, including discounts, allow¬ ances and premiums in effect during the base period to all classes of purchasers. (c) Evasion. The ceiling prices estab¬ lished by this regulation shall not be evaded either by direct or. indirect meth¬ ods in connection with the purchase, sale, delivery or transfer of petroleum products alone or in conjunction with any other materials, or by way of any commission, service, transportation, or any other charge, or discount, premium or other privilege, or by tie-in-agreement or other trade understanding or by a change in the quality of the product, or otherwise, except when such change in quality results from order of any agency of the United States Government. (d) Enforcement. Any person who violates any provision of this regulation is subject to the criminal penalties, civil enforcement actions, and suits for dam- (b) Current records. If you sell commod¬ ities or services covered by this regulation you must prepare and keep available for ex¬ amination by the Director of Price Stabi¬ lization for a period of two years, records of the kind which you customarily keep show¬ ing the prices which you charge for the com¬ modities or services. In addition, you must prepare and preserve records indicating clearly the basis upon which you have de¬ termined the celling price for any commod¬ ities or services not delivered by you or of¬ fered for delivery during the base pe¬ riod. • • * “Base period” as used in section 16 of the General Celling Price Regulation means De¬ cember 19, 1950, to January 25, 1951, Inclu¬ sive. age provided for by the Defense Produc¬ tion Act of 1950. Sec. 14. Definitions—(a) “Person” in¬ cludes an individual, corporation, part¬ nership, association, or any other organ¬ ized group of persons, or legal successor and representatives of any of the fore¬ going, and includes the United States or any agency thereof, or any other gov¬ ernment or any of its political subdivi¬ sions, or any agency of any of the foregoing. (b) “Retail establishment” means the store, shop, garage, service station (land or marine), or other place of business at which the major portion of the sales of petroleum products is sold in customary small quantities to consumers. (c) “Contract” means an agreement, the existence of which is established by written evidence. (d) “Comparable competitive prod¬ uct.” For a product of a particular seller to be regarded as comparable to the product of another seller, it must cus¬ tomarily have been so regarded in trade practice and it must be a product that has customarily been sold in competition with the product of such other seller. (e) “Offering price.” The price at which a product was offered means the price shown in the seller’s price list, or if a particular price was not included there¬ in, or if he had no price list, the price at which he offered products in any other written manner. Such prices shall be subject to the seller’s customary allow¬ ances, discounts, and price differentials. (f) “End use." Two products shall be considered as having similar end use if sold for the same general purpose; for example, products in each of the follow¬ ing categories may be considered as hav¬ ing similar end use; motor oils; pressure gun greases; gear lubricants; wheel bear¬ ing greases; hydraulic oils; rest preven¬ tives; cutting oils; turbine oils; quench¬ ing oils; textile oils; and ink oils. How¬ ever, in making product comparisons under applicable provisions of this regu¬ lation, due consideration shall be given to products of similar specifications and composition. For example, if a new Pennsylvania motor oil is being priced, comparison shall be made with other Pennsylvania motor oils in the seller’s line; if he has none, comparison shall then be made with those motor oils most nearly approximating the new product in specifications, e. g., Mid-Continent Sol¬ vent Refined. (g) “Purchaser of the same class.” This term refers to the practice adopted by the seller in setting different prices for a product for sales to purchasers per¬ forming different functions (for ex¬ ample, refiners; jobbers; distributors; commercial, industrial or private con¬ sumers) or for purchasers performing the same functions but located in differ¬ ent areas or buying in different quanti¬ ties or grades or under different condi¬ tions of sale. Price is prima facie evi¬ dence but not conclusive evidence to be considered in determining if a purchaser belongs to a particular class; however, a lower price to a particular purchaser which was to meet competition and was otherwise inconsistent with the seller’s practice in setting the same price to pur¬ chasers in the same functional class shall 81 Trans 38:5 neither result in placing the particular purchaser in a lower price class nor be considered in determining a seller’s ceil¬ ing price. (h) “Sale.” The term “sale” for pur¬ poses of using the "ceiling price based on sales” method of section 16 shall include: (1) Sales in the base period pursuant to oral or written contracts, including spot sales, made during such period. (2) Written contracts made during the base period whether or not any de¬ liveries were made thereunder, and writ¬ ten contracts made during the period June 1, 1950, to December 18, 1950, in¬ clusive, under which no deliveries were made in the base period but which pro¬ vided for performance to begin during or after the base period. (3) Deliveries made during the base period under a contract made between June 1, 1950, and December 18, 1950, in¬ clusive, if such contract was adjustable to reflect market conditions during the base period. Provided, however, That in all cases deliveries made in the base period under contracts entered into prior to June 1, 1950, shall not be considered as a "sale,” unless the buyer and seller agree to con¬ tinue such contracts in which case the ceiling price may be established on the basis of such contracts. (i) “Base period”. This term means the period from December 19, 1950, to January 25, 1951, inclusive. (j) “Delivery point”. This term means the different customary price areas of the seller, such price areas being reflected by the seller on a stated price or differential basis. Each such price area shall be interpreted as a delivery point and the ceiling price of each seller in each such price area shall reflect his customary differentials or differences in prices. CEILING PRICES Sec. 15. Specific ceiling prices for cer¬ tain stock oils in bulk lots. [Reserved]. Sec. 16. Formula prices—(a) Ceiling price based on sales. Where no ap¬ plicable specific price has been estab¬ lished under section 15, the ceiling price of a seller for each product covered by this regulation at each shipping or de¬ livery point shall be the highest price charged at that point by him during the period December 19, 1950, to January 25, 1951, inclusive, for a sale of such pe¬ troleum product to a purchaser of the same class. (b) Ceiling price based on offering price. If a seller is unable to determine a ceiling price under paragraph (a) of this section, the ceiling price for such seller at each shipping or delivery point for each petroleum product covered by this regulation shall be the highest offer¬ ing price at the shipping or delivery point during the period December 19, 1950 to January 25, 1951, inclusive, for sale of such petroleum product to a purchaser of the same class. • (c) Ceiling prices determined under paragraphs (a) and (b) of this section shall reflect the seller’s customary allow¬ ances, discounts, and price differentials. Sec. 17. Seller unable to determine ceiling price—(a) Minor differences method. Where a ceiling price for a particular product cannot be determined under the preceding methods of this regulation and where the product differs from another product for which a ceil¬ ing price has been determined under this regulation, only by reason of minor dif¬ ferences in composition which do not prevent its offering substantially equiv¬ alent serviceability, the ceiling price of the particular product shall be the same as that of the product for which a ceil¬ ing price has been established except that: (1) Refiners, blenders, and compound¬ ers. A refiner, blender, or compounder may not use this provision if the current delivered cost of the components of the particular product varies from the cur¬ rent delivered cost of the components of the product for which such sellers have an established ceiling price by more than 5 percent of the current delivered cost of the original product. In computing cost, a refiner shall use with respect to the components obtained from his own refinery operations the value which he placed on those compo¬ nents during the base period as evidenced by accounting records maintained for this purpose. However, any seller subject to this pro¬ vision who believes that an undue hard¬ ship is imposed upon him by pricing hereunder, may file a ceiling price under section 17 (b) stating the reasons why he should not be required to price under the minor differences method. When such a filing is made, the Director of Price Stabilization may review all prices established by the seller under the minor differences method and revise them if, in his judgment, the over-all application of this section in the particular seller’s case results in ceiling prices not in line with ceiling prices established for other sellers subject to this minor differences method. (2) Resellers. A reseller may not use this provision if the current delivered cost of the particular product varies from the current delivered cost of the product for which he has an established ceiling price by more than 5 per cent of the cost of the original product. (b) Comparable products margin method: Where the seller has compara¬ ble products sold during base period. Where a ceiling price for a particular product cannot be determined under the preceding pricing methods, a seller shall establish his ceiling price on the basis of the average of the mark-ups on two comparable products. (1) Resellers. A reseller shall select two products of similar end use on which he has established ceiling prices. The two products selected shall be closest in composition, specifications and current delivered costs to the product being priced. Of the two comparable products, one shall be next lower in cost to the new product and the other shall be next higher in cost. In no case shall any product be selected which varies by more than 20 per cent from the current de¬ livered cost of the product being priced. The seller shall establish his ceiling price by (i) dividing the ceiling price for each such product by its current deliv¬ ered cost; (ii) adding the resulting figures and dividing by two; (iii) multi¬ plying the current delivered cost of the product priced by the figure obtained in subdivision (ii) of this subparagraph; (iv) copying the form, in subparagraph (3) of this paragraph, filling it in and forwarding by registered mail, return receipt requested, to the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C. (2) Refiners, blenders and compound¬ ers. A refiner, blender or compounder shall determine his ceiling price by the procedure for resellers in subparagraph (1) of this paragraph, using his current delivered costs for the components he buys. With respect to the components he manufactures, the refiner shall use in the place of current delivered costs of the components the value which he placed on such components during the base period, as evidenced by accounting rec¬ ords maintained for this purpose. (3) Filing provision. The ceiling prices determined according to subpara¬ graphs (1) and (2) of this paragraph shall be filed by registered mail, return receipt requested, within 15 days of the making of the sale, with the Petroleum Branch of the Office of Price Stabiliza¬ tion, Washington 25, D. C., in the form indicated below. Upon filing, the price shall be the seller’s ceiling price for the particular product unless it is disap¬ proved in writing or a different price is established by the Office of Price Sta¬ bilization. If he wishes, the seller may request a ceiling price before making a sale. A price established under this section may be changed at any time by order of the Office of Price Stabilization. If a seller shall fail to report a ceiling price, the Office of Price Stabilization may establish his ceiling price for a par¬ ticular product at the particular point, effective retroactively to the date of the making of the first sale of the product. Office of Price Stabilization REPORT OF CEILING PRICE Section 17 (b)—Ceiling Price Regulation No. 63 Company name._.. Address.... Product being priced. Unit of sale... Class of purchaser. 1. Name... 2. End use.. 3. Cui*tent delivered cost1.. 4. Ceiling price (line 3 multiplied by average ratio below) Comparable products having the same end use on which seller lias established ceiling prices: Unitofsale... Class of purchaser. Column 1 Name Column 2 Ceiling price Column 3 Current delivered cost1 Column 4 Ratio: Column 2 divided by column 3 Product No. 1 Product No. 2 Total cc Average ratio lumn 4__ (total column 4 divided by 2)... i Current delivered cost to be used by resellers. Re¬ finers for components from own operations use value laced on the product during the base period as evidenced y accounting records maintained for this purpose. (c) Final pricing method: New prod¬ ucts where the seller has not sold com¬ parable products during base period. If under other provisions of this regula- 81 Trans 38:6 tion, a* seller is unable to determine his ceiling price at a given shipping or de¬ livery point for any product covered by this regulation, the seller may neverthe¬ less make a sale of such product at that point. If he wishes, he may request a ceiling price before making a sale. Within 15 days after making such a sale, the seller shall file by registered mail, return receipt requested, with the Petro¬ leum Branch, Office of Price Stabiliza¬ tion, Washington 25, D C., a written re¬ quest for approval of a ceiling price in¬ cluding a statement setting forth: (1) Why he cannot establish a ceiling price under the methods set forth above. (2) The name, established ceiling price, end use, pertinent specifications, composition and current delivered cost of the seller’s product which is most comparable to the new product. (3) The proposed ceiling price, class of purchaser to whom applicable, the method used to determine it and the reason why the seller believes the pro¬ posed price is in line with the level of ceiling prices otherwise established by this regulation. (4) Names and established ceiling prices of two “comparable competitive products” giving the information which the seller is able to obtain regarding the pertinent specifications and end use of such products. If the seller or any other seller has an established ceiling price or prices at other points for the same com¬ modity for which a tentative price is herein established, such prices for the three nearest points. (5) Any other information which the seller can give to substantiate the ceiling price he is filing. The price filed shall be the seller’s ceiling price unless it is disapproved in writing or a different price is established. A price established under this section may be changed at any time by order of the Office of Price Stabilization. If a seller shall fail to re¬ port a ceiling price, the Office of Price Stabilization may upon written notice to the seller establish his ceiling price for the particular product at the particular point, effective retroactively to the date of the making of the first sale of the product. INCREASES PERMITTED OR REDUCTIONS REQUIRED , Sec. 18. Transportation, (a) There may be added to the applicable ceiling prices determined under other sections of this regulation an amount not in ex¬ cess of the following: (1) The exact amount of increase in transportation costs to the seller or his reseller customer resulting from trans¬ portation rate increases including excise taxes applicable to such rate increases between January 26, 1951, and May 15, 1951, inclusive, permitted by Federal or State regulatory bodies or by the Office of Price Stabilization. (2) Where transportation is in facili¬ ties owned or controlled by the seller the same increases as provided in subpara¬ graph (1) of this paragraph where the movement involved is in lieu of transpor¬ tation by such regulated carrier. Sec. 19. Taxes. Any seller may collect, in addition to the ceiling prices estab¬ lished by this regulation, any new ex¬ cise, sales, or similar tax imposed upon him after January 25, 1951, by reason of his sales of any of the products covered by this regulation if he is not prohibited by law from making such collection and if he states separately from his selling price the amount of the tax collected. Sec. 20. Changes in the costs of pur¬ chased products, components and con¬ tainers— (a) Refiners, blenders and com¬ pounders. When a refiner’s, blender’s or compounder’s total cost of components of a product on March 15, 1951 exceeds by more than 5 percent, his total cost of components on June 1, 1950 because of a change in the costs of the purchased components entering directly into the product and/or the non-returnable con¬ tainer used for shipping such product, he may modify his ceiling price for the product to reflect the dollar and cents increased costs of purchased components and/or non-returnable container. However, in computing the amount that may be added to his current ceiling price for each class of purchaser, he shall deduct from his increased costs the amount by which his current ceiling price exceeds his June 1, 1950, ceiling price to that class. In computing costs of purchased components and/or non- returnable containers on June 1, 1950, and March 15, 1951, refiners, blenders and compounders shall use the delivered costs of these products less any dis¬ counts or allowances obtained (not in¬ cluding customary cash discounts) as of the dates nearest, but prior to and including June 1, 1950, and March 15, 1951. These costs for both prescribed dates shall be based on normal buying practices. For example, any cost based upon smaller quantity purchases or use of a more distant source of supply than customary would constitute departures from normal buying practices. Refiners, in computing total cost of components on June 1, 1950, shall use as delivered cost for the components obtained from their own refinery operations the value placed on such components on June 1, 1950, as evidenced by accounting records maintained for this purpose. Any seller having used this provision to increase his ceiling price for a product shall re¬ duce this new ceiling price by the dollar and cents decreased costs of purchased components and/or non-returnable con¬ tainer when his total costs of compo¬ nents of the product and/or non-return¬ able containers subsequent to March 15, 1951, have decreased by more than 5 percent. In computing total costs, re¬ finers, blenders and compounders shall use the applicable procedures set forth above. (b) Refiners, blenders and compound¬ ers performing the function of resellers and other resellers. When the delivered cost of a product and the non-returnable container used in shipping such product to a reseller (including refiners, blend¬ ers and compounders who resell the product in the same form as purchased) on March 15, 1951, exceeds by more than 5 percent his cost on June 1, 1950, he may modify his ceiling price for the product to reflect his dollar and cents increased costs. However, in computing the amount that may be added to his current ceiling price for each class of purchaser, he shall deduct from his increased cost the amount by which his current ceiling price exceeds his June 1, 1950, selling price to that class. Any seller having used this provision to increase his ceil-, ing price for a product shall reduce this new ceiling price by the dollar and cents decreased cost of the product when its cost subsequent to March 15, 1951, has decreased by more than 5 percent. (c) Distortions. Any seller modifying his ceiling prices pursuant to paragraphs (a) or (b) of this section, who finds that a. distortion results in the customary price relationships among products of a particular series due to the 5 percent lim¬ itation requirement may request that ceiling prices be adjusted on all products in the series in order to maintain their customary price relationships. When such a request is made, the applicant shall submit to the Petroleum Branch, Office of Price Stabilization, Washing¬ ton 25, D. C., (1) the same information as required under paragraph (e) of this section; (2) a statement of the reasons why a distortion in customary price re¬ lationships is created by the seller’s use of section 20; (3) the ceiling prices re¬ quested; and (4) why the establishment of such ceiling prices will result in the maintenance of the seller’s customary price relationships for the products in¬ volved. The ceiling prices requested be¬ cause of distorted price relationships cannot be used until adjusted by order of the Director of Price Stabilization. (d) Resellers. Where a refiner’s, blender’s or compounder’s ceiling price for a petroleum product has been in¬ creased or decreased by the use of this section, the reseller’s ceiling price for such product shall be modified by the amount of the dollar and cents difference in cost to him. (e) Filing provision. Any seller using paragraph (a) or (b) of this section shall file by registered mail, return re¬ ceipt requested, with the Petroleum Branch, Office of Price Stabilization, Washington 25, D. C., the following in¬ formation: • (1) Selling price for the particular product on June 1, 1950. (2) Ceiling price for the particular product as established under other pro¬ visions of this regulation. (3) Ceiling price as determined by this provision. (4) The identification and net deliv¬ ered cost of the purchased product, com¬ ponents and/or non-returnable con¬ tainer on March 15, 1951, or the date nearest but prior thereto on which a purchase was made; the net delivered costs of the purchased product, compo¬ nents and/or non-returnable container on June 1, 1950, or the date nearest but prior thereto on which a purchase was made; and the costs at the time a re¬ calculation is made to reflect decreased costs. Upon filing, the price shall be the seller’s ceiling price for the partic¬ ular product unless it is disapproved in writing or a different price is established by the Office of Price Stabilization. A price established under this section may 81 Trans 38:7 be changed at any time by order of the Office of Price Stabilization. Sec. 21. Containers—(a) Deposits. Any seller subject to the provisions of this regulation may place deposit charges not to exceed the following amounts on the enumerated shipping containers, not including I. C. C. 5 or 5 B drums. Such deposit charges shall be subject to the seller’s customary practice with respect to condition of drum and time allowed for return: 55-gallon or 400-pound, 16-20-gage steel drum-$10.00 30-gallon or 200-pound, 16-20-gage steel drum_ 6. 00 15-gallon or 100-pound, 19-24-gage steel drum_ 4. 00 (b) Reduction in ceiling price when shifting from a non-returnable to a re¬ turnable drum basis. Any seller who dur¬ ing the base period sold on a non-return¬ able drum basis and subsequent to the base period shifts to a returnable drum basis shall make the following allow¬ ances for return of drums to his purchas¬ ers except in the States of California, Washington and Oregon. 55-gallon or 400-pound, 16-20-gage steel drum_ $1. 75 30-gallon or 200-pound, 16-20-gage steel drum_ 1. 50 15-gallon or 100-pound, 19-24-gage steel drum._ 1. 00 In the States of California, Washing¬ ton and Oregon, there shall be added an additional $0.25 to each of the allowances set forth above. Effective date. This Ceiling Price Reg¬ ulation shall become effective on August 6. 1951. Note: The record-keeping and reporting re¬ quirements of this regulation have been ap¬ proved by the Bureau of the Budget In accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. July 30, 1951. I \ i '1 ' ’ • r. ’ $ ... - - • i » « • • .. ■ ' ‘‘ i \ FILE following 81 Trans 38:7 (12-15-52) 81 Trans 38:9 Territories and Possessions (Amending Sec. 4) Ceiling Price Regulation 63 Amendment 1 DECEMBER 15, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 63, Arndt. 1] CPR 63—Lubricating Oils, Greases, Waxes and Certain Other Petroleum Products territories and possessions Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this amend¬ ment to Ceiling Price Regulation 63 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment excepts from the cov¬ erage of Ceiling Price Regulation 63 sales of lubricating oils, greases, waxes and certain other petroleum products which have been imported into the territories and possessions of the United States. This action places the sales of these pe¬ troleum products in the territories and possessions under the provisions of Ceil¬ ing Price Regulation 9. Ceiling Price Regulation 9 was first ef¬ fective March 7, 1951. It is tailored to the needs and problems of the stabiliza¬ tion program in the sale in the territories and possessions of commodities imported into them. It covered the petroleum products dealt with here until Ceiling Price Regulation 63 became effective on August 13,1951. Experience with the op¬ eration of Ceiling Price Regulation 63 on sales in the territories and possessions since then has shown that the considera¬ tions stated as the basis for the issuance of Ceiling Price Regulation 9 are fully present with respect to the products cov¬ ered by Ceiling Price Regulation 63,> and that the fair and effective administration of price control over them in the terri¬ tories and possessions will be aided by re¬ moving them from Ceiling Price Regula¬ tion 63 and restoring them to Ceiling Price Regulation 9. The Director of Price Stabilization has consulted with trade association repre¬ sentatives and members of the industry affected by this amendment and consid¬ eration has been given to the informa¬ tion and suggestions received from them. AMENDATORY PROVISIONS Section 4 of Ceiling Price Regulation 63 is amended to read as follows: Sec. 4. Sales of products imported into the territories and possessions. This regulation does not cover sales of prod¬ ucts imported into the territories and possessions of the United States, whether made by resellers or by refiners, blenders and compounders performing the func¬ tion of reseller. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective December 20, 1952. Joseph H. Freehill, Acting Director of Price Stabilization. December 15, 1952. ■ - / FILE following 81 Trans 38:9 (1-15-53) 81 Trans 38:11 Transportation Ceiling Price Regulation 63 Amendment 2 JANUARY 15, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 63, Amdt. 2] CPR 63—Lubricating Oils, Greases, Waxes and Certain Other Petroleum Products TRANSPORTATION Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amendment 2 to Ceiling Price Regula¬ tion 63 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 63 revises the provisions of sec¬ tion 18, which deal with increased trans¬ portation costs. First, it eliminates the “cut-off” date of May 15, 1951, so as to permit transportation rate increases ef¬ fective after that date to be passed on to the purchaser in the same manner as those transportation rate increases ef¬ fective between January 26, 1951 and May 15, 1951. Second, it permits the pass-through of certain inbound freight increases in those situations where such inbound freight parallels outbound freight for the majority of the industry. Third, it permits a seller to increase his ceiling price to reflect increases in the transportation rate he used during the base period in accordance with his cus¬ tomary practice as a factor in his price, even though he does not actually use such facilities or actually incur the ex¬ act amount of such increases. Fourth, it permits sellers to round their increased ceiling prices according to customary base period practices. Because of the number and size of the increases in transportation rates that have occurred since the “cut-off” date in this regulation and their significance in the marketing of the products covered by CPR 63, it is considered advisable to eliminate the “cut-off” date in line with the policy underlying similar action by the Office of Price Stabilization as ex¬ pressed in other regulations, such as Supplementary Regulations 120 and 122 to the General Ceiling Price Regulation, Supplementary Regulation 35 to Ceiling Price Regulation 22, and others. Ac¬ cordingly, Ceiling Price Regulation 63 as changed by this amendment, will per¬ mit increases in ceiling prices to reflect increases in outbound transportation costs resulting from authorized rate in¬ creases effective since May 15, 1951. The transportation section was not in¬ tended to permit increased ceiling prices based on higher transportation rates on crude or semi-finished stocks. The lan¬ guage of the amendment specifically ex¬ cludes such increases as a basis of in¬ creasing ceiling prices. However, it is recognized that certain sellers must be permitted to reflect increases in inbound freight rates if a disruptive effect on the market is not to result. The great per¬ centage of the products covered by this regulation are produced and sold by the major integrated petroleum companies. The transportation costs incurred by these sellers in the main are for out¬ bound transportation. However, other compounders, blenders and refiners who must purchase their blending stocks or semifinished materials from these in¬ tegrated companies incur inbound freight costs. The inbound freight they incur parallels the outbound freight of the integrated producers, who account for the greater part of the production, and who are in competition with the smaller independent compounders and blenders. To permit these smaller op¬ erators to retain their customary price relationship with those sellers supplying the bulk of these products, this amend¬ ment permits inbound freight increases on semifinished products as a basis for increased ceilings except where ship¬ ment is between units of the same com¬ pany. In the marketing of petroleum there are many instances where the market price of a product at a delivery point, while reflecting some elements of trans¬ portation, will not reflect the exact amount of freight that the individual seller incurs in making delivery to that point. Thus, a particular seller may use his freight cost in shipping product to one point in a pricing area for establish¬ ing prices throughout the pricing area. Again the seller may have had to absorb some freight because he has sold at a market price based on product shipped from a basing point. Conversely, he may have had an advantage in selling in a market where the price reflected freight from a point farther than his point of supply. In another situation a seller's market price may customarily reflect the rates for a means of transpor¬ tation other than the means he actually uses, but which is the means normally used by most other sellers in that area. In order to maintain the stability of the market this regulation permits increases in ceiling prices based on the amount of increases in the transportation rate cus¬ tomarily used by the seller as a factor in his price if his base period prices re¬ flected such customary rate. In this way sellers may not increase their ceil¬ ing prices more than they would have in ordinary practice, nor would those who had no or a lesser increase in trans¬ portation rates find themselves with ceil¬ ing prices that do not reflect their cus¬ tomary price relationship with other sellers in the market. Instances have come to the attention of the Office of Price Stabilization where sellers have attempted to raise ceiling prices because of a shift from a normal method of transportation or normal source of supply to a higher cost method of transportation or a source of supply incurring a higher transportation cost. It was not intended to provide for ad¬ justment of ceiling prices because of cost increases resulting from shifts in source of supply. It is stated explicitly in the amendment that such abnormal supply situations do not qualify the seller for an increase in his ceiling prices under the transportation section of the regu¬ lation. In the formulation of this amendment there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, to the extent practicable, and consideration has been given to their recommendations. In the judgment of the Director of Price Stabilization the changes set forth in these amendatory provisions are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Section 18 of Ceiling Price Regulation 63 is amended to read as follows: Sec. 18. Transportation, (a) A seller may add to the applicable ceiling prices determined under other sections of this regulation an amount calculated in ac¬ cordance with whichever of the following three methods conforms to his customary practice in the base period: (1) A seller may add the increase in his unit cost resulting from transporta¬ tion rate increases after January 25, 1951 permitted by Federal or State reg¬ ulatory bodies or by the Office of Price- Stabilization. Such increases may in¬ clude excise taxes, which are a part of or are applicable to the increase. If the increase in transportation rates occurs after the effective date of this regulation the higher ceiling prices may be made effective on or after the day that the increased transportation rate goes into effect. (2) Where the transportation of the product is in facilities owned or con¬ trolled by the seller and is in lieu of movement by a regulated carrier, he may add the unit increase that would be per¬ mitted him in subparagraph <1> of this paragraph, had he used such regulated carrier. (3) Where a seller in accordance with his customary pricing practice included in his selling price during the base period the transportation rate from a point other than his own source of supply, or 81 Trans 38:12 the transportation rate to a point in a pricing area other than the rate to the actual point of delivery, or the rate of a means of transportation other than, that actually used by him, he may add the unit increase permitted by Federal or State regulatory bodies or by the Office of Price Stabilization in such transpor¬ tation rate. <b) A seller may round the additions to his ceiling price determined under this section to the nearest cent or fraction of a cent in accord with his customary practice. If a seller elects to round one ceiling price he must similarly round all his ceiling prices increased under this section to reflect decreases as well as increases. (c) Not included as the basis of in¬ creasing ceiling prices under this section are increases in the cost of transporting crude petroleum and increases in the cost of transporting, for further process¬ ing, semifinished materials between units or controlled subsidiaries of the same company. Under this section com¬ pounders, blenders or refiners may in¬ crease the ceiling price of a finished prod¬ uct or for a product which has been fur¬ ther processed, only up to an amount which will reflect the proportionate freight increases of the various compo¬ nents or the proportionate freight in¬ creases for each refined product. (d) Nothing in this section shall au¬ thorize a seller to increase his ceiling prices as a result of higher transporta¬ tion costs (including excise taxes there¬ on) caused by a change from the normal source of supply or a change to a differ¬ ent method of transportation. (e) A seller adjusting his ceiling price under this section shall maintain a rec¬ ord of his adjustment and such records must substantiate that the adjustments relate directly to base period practice. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C„ App. Sup. 2154) Effective date. This amendment shall become effective January 20, 1953. Note: The record-keeping requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Joseph H. Freehill, Director of Price Stabilization. January 15, 1953. FILE following 81 Trans 38:7 (9-7-51) 81 Trans 39:1 Rental of Certain Ceiling Price Regulation 70 Types of Commercial sept. 7, 1951 Motor Vehicles OFFICE OF PRICE STABILIZATION TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Celling Price Regulation 70] CPR 70—Rental of Certain Types of Commercial Motor Vehicles Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 ,(16 F. R. 738), this Ceiling Price Regu¬ lation 70 is hereby issued. statement of considerations This regulation establishes ceiling rates for the lease or rental of passenger automobiles, taxicabs, busses (other than school busses), trucks, truck tractors, commercial trailers, and semitrailers, or any combination thereof. The ceiling rates for the lease or rental of commercial motor vehicles were here¬ tofore determined under the General Ceiling Price Regulation or Ceiling Price Regulation 34. To the extent of its ap¬ plicability this regulation supersedes the General Ceiling Price Regulation and Ceiling Price Regulation 34. The funda¬ mental provisions of the regulations mentioned relating to the determination of ceiling rates have been retained. The general considerations which support these regulations are equally applicable to this regulation. The method of deter¬ mining ceiling rates at the highest rates charged during the "base period,” De¬ cember 19, 1950, to January 25, 1951, inclusive, is incorporated, but that sec¬ tion of the General Ceiling Price Regu¬ lation which provides for determining ceiling rates by reference to the charges of a closest competitor has been elimi¬ nated. It appears that this method of establishing rates is impracticable and unsatisfactory as applied to the leasing or rental of commercial motor vehicles. A substitute provision has been pro¬ vided whereby a lessor may compute and report the proposed ceiling rates on the basis of costs, such rates being subject to review and approval by the Office of Price Stabilization prior to becoming effective. Because of the large number of short¬ term leases of commercial motor ve¬ hicles, the provisions of Ceiling Price Regulation 34 permitting adjustment by buyer-seller agreements are not suited to the truck and passenger-car rental industry. Accordingly, the provisions contained in Ceiling Price Regulation 34 relating to adjustments under buyer- seller agreements, are excluded from this regulation. The adjustment provisions of this reg¬ ulation pro/ide a means whereby neces¬ sary rate adjustments for lessors of com- WASHINGTON mercial motor vehicles affected by this regulation may be made upon a showing that existing ceiling rates result in sub¬ stantial financial hardship; or that the adjustment requested is necessary to permit the continuance of an essential service; and that the requested adjust¬ ment will not result in a higher ratio of net operating revenue to total operat¬ ing revenue than during the base period. Motor vehicle rental agreements which include the furnishing of drivers are not covered by this regulation since such ar¬ rangements have generally been con¬ strued to be transportation services rather than equipment rentals services. Provision is made in this regulation, however, to extend the applicability of this regulation to include leases or rent¬ als of “commercial motor vehicles” with drivers, under special circumstances. Authorization to establish ceiling rates covering such services may be granted by the appropriate District Office of the Office of Price Stabilization upon a showing that a rental service with driver should be properly regarded as a rental service rather than as a transportation service. This regulation provides for the ex¬ emption from price control of services afforded under “rental-purchase option agreements” having a term of not less than one year which contain an option in favor of the lessee to purchase the vehicle so rented at any time during the term of the lease at a price which is based upon the original cost to the lessor of the vehicle, when new, not in excess of the OPS ceiling price, less a credit to the lessee of a portion of the rental pay¬ ments paid to the lessor by the lessee totaling a sum which, in the case of the purchase of trucks, tractors, trailers, semi-trailers, and busses, other than school busses, will not be less than the depreciation accruing on the vehicle during the period that the lease is in effect computed at 1 percent per each 30-day period of the original cost price of the vehicle to the lessor and, in the case of the purchase of passenger auto¬ mobiles and taxicabs, will not be less than the depreciation accruing on the vehicle during the period that the lease is in effect computed at 2 percent per each 30-day period of the original cost price to the lessor for such vehicle. The limitations upon the exemptions made herein are such that adequate safe¬ guards are provided against the transfer of motor vehicle equipment at exorbitant and inflationary prices. regulatory provisions Sec. 1. What this regulation does. 2. Services covered. 3. Relation to other regulations. 4. Service furnished during the “base pe¬ riod”. 5. Service not furnished during the "base period". Sec. 6. Seasonal variations in rates and seasonal services. 7. Exemption of certain rental-purchase op¬ tion agreements. 8. Multiple establishments and transfer of business. 9. Customary auxiliary services. 10. Taxes. 11. Rate base. 12. Adjustment of ceiling rates, and effec¬ tiveness of adjustments. 13. Where and how to apply for adjustment. 14. Record keeping requirements. 15. Compliance provisions. 16. Amendments. 17. Geographical applicability. 18. Definitions. Authority: Sections 1 to 18 Issued under Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Sup. 2101-2110, E. O. 10161, Sept. 9, 1950, 15 F. R. 6105; 3 CFR, 1950 Supp. Section 1. What this regulation does. This regulation removes the leasing or rental of "commercial motor vehicles” from the General Ceiling Price Regula¬ tion and Ceiling Price Regulation 34 and puts them under this regulation. Gen¬ erally this regulation establishes the ceil¬ ing prices for the rental of “commercial motor vehicles” at the levels prevailing during the base period December 19,1950, to January 25, 1951, inclusive. Sec. 2. Services covered—(a) General applicability. This regulation covers all leases and rentals, without drivers (ex¬ cept as hereinafter provided), of “com¬ mercial motor vehicles” as defined in section 18 (a) of this regulation. It in¬ cludes rentals known as bare truck ren¬ tals, as well as other types, in connection with which the lessor agrees to furnish some or all of the operating and main¬ tenance service. (b> Special applicability. Applicabil¬ ity of this regulation may be extended to include leases or rentals of “commer¬ cial motor vehicles” with drivers, only by authorization from the appropriate District Director of the Office of Price Stabilization. The lessor shall file a written request for such authorization with the appropriate district office of the Office of Price Stabilization showing that the furnishing of the driver is: (1) A transaction severable from the rental of the "commercial motor vehicle,” and (2) Performed for the accommoda¬ tion of the lessee, and that the lessee has entered into an employer-employee re¬ lationship with the driver and has as¬ sumed full responsibility for the opera¬ tion of the vehicle, and <3» Performed by the lessor at no separate profit to himself. The respective District Directors are hereby delegated authority to act upon and to handle to final conclusion all re¬ quests filed pursuant to the provisions of this regulation. 81 Trans 39:2 (c) Exclusions. This regulation does not apply to the following specified serv¬ ices, but such services, other than com¬ mon carrier and public utility services, will nevertheless continue to be subject to such regulations of the Office of Price Stabilization as may otherwise be ap¬ plicable: (1) Lease or rental of “commercial motor vehicles" to or by a United States government agency. (2) Any service of a common carrier or public utility. (3) Lease or rental of “commercial motor vehicles” between carriers. (4) Lease or rental of dump trucks used on construction or road mainte¬ nance projects. • (5) Lease or rental of ambulances, hearses, school busses, and funeral cars. Sec. 3. Relation to other regulations. This regulation supersedes the General Ceiling Price Regulation and Ceiling Price Regulation 34 with respect to all services covered by this regulation. Sec. 4. Service furnished during the “base period". Except as provided in section 6 of this regulation, for seasonal services, the ceiling rate for the rental or lease of any “commercial motor ve¬ hicle” is the highest rate charged by the lessor for the “same or similar service" during the "base period”, December. 19, 1950, to January 25, 1951, inclusive. Sec. 5. Service not furnished during the “base period.” (a) If the service was not actually furnished during the "base period" and is not a seasonal serv¬ ice to which section 6 of this regulation applies, the ceiling rate is the highest rate at which the lessor offered, in writ¬ ing, to provide it during the "base period". (b) If the service was neither fur¬ nished or offered in writing during the “base period”, nor a seasonal service covered by section 6 of this regulation, and the ceiling rate has since been established under appropriate provisions of the General Ceiling Price Regulation or Ceiling Price Regulation 34, the ceil¬ ing rate for such service is the ceiling rate thus established. (c) If the service was not furnished, or offered in writing, during the "base period”, and if the ceiling rate has not been otherwise established since that time, the lessor shall determine his pro¬ posed ceiling rate in accordance with the following method. A report shall be submitted to the appropriate district office of the Office of Price Stabilization, which report shall set forth in detail: (1) A description of the "commercial motor vehicle" to be furnished, (2) The proposed ceiling rate, (3) A detailed break-down of the esti¬ mated fixed and variable expenses, (4) The rate charged for the most comparable service, (5) The pricing formula normally used by the lessor in establishing his rates, and (6) Any other information which the lessor deems pertinent to justify the pro¬ posed ceiling rate. The respective District Directors are hereby delegated authority to act upon and to handle to final conclusion all re¬ * ports filed pursuant to the provisions of this section. Thirty days after the re¬ port has been received by the appro¬ priate district office of the Office of Price Stabilization, or 30 days after the receipt of such additional information as may be requested, the lessor may charge the proposed ceiling rate unless advised by the Office of Price Stabilization that the proposed rate has been disapproved or modified. The service may be furnished during the period pending consideration of the ceiling rate and the rate proposed may be charged for on open billing. How¬ ever, no charge may be collected until the rate has been approved or until the 30-day period has expired without ad¬ verse action by the Office of Price Stabilization. Sec. 6. Seasonal variations in rates and seasonal services—(a) Commercial mo¬ tor vehicle rentals supplied in the “base period” but subject to seasonal varia¬ tions in rates. If the lessor has had a regularly established seasonal variation in rates and leased or rented “commer¬ cial motor vehicles” during the “base period”, the ceiling rates for other sea¬ sonal periods shall reflect the customary dollar differential between that season and the "base period”. However, the provisions of this paragraph apply only if the season during which the variation in rates was in effect regularly consisted of at least 60 consecutive days. (b) Seasonal services not supplied during the “base period". If the lessor supplied a seasonal service during the calendar year 1950 but did not supply that service during the "base period”, the ceiling rate for such service shall be the highest rate charged in the com¬ parable season of 1950. Sec. 7. Exemption of certain rental- purchase option agreements. Services offered under a rental-purchase option agreement having a term of not less than 1 year and granting to the lessee an option, which may be exercised at any time during the period of the lease, to purchase the vehicle or vehicles leased under the agreement are hereby speci¬ fically exempted from price control pro¬ vided the purchase price specified in the option does not exceed the original cost to the lessor of the vehicle or vehicles, when new (which cost does not exceed the Office of Price Stabilization ceiling price or prices) less a deduction there¬ from of a sum which (a) in the case of the purchase of trucks, tractors, trailers, semi-trailers, and busses, other than school busses, is not less than the sum of 1 percent of the original cost of each vehicle to the lessor per 30-day period during the entire period from the date of execution of the lease until the date that the purchase option is exercised; or <b) in the case of the purchase of passenger automobiles and taxicabs, is not less than the sum of 2 percent of the original cost of each vehicle to the lessor per 30-day period during the entire pe¬ riod from the date of execution of the lease until the date that the purchase option is exercised. Sec. 8. Multiple establishments and transfer of business.—(a)Multiple es¬ tablishments. Each “establishment” op¬ erated by a lessor shall be treated separately for the purpose of computing ceiling rates under this regulation. (b) Transfer of business. If a person purchases, leases, or otherwise acquires the business, assets, or equipment of a "commercial motor vehicle” lessor, and the purchaser continues in the rental of “commercial motor vehicles” from an “establishment” thus acquired, the ceil¬ ing rates for services furnished from any such “establishment” shall be the same as those of the predecessor. Sec. 9. Customary auxiliary services. (a) The lessor shall provide the same auxiliary maintenance and operating services and supplies customarily fur¬ nished in the “base period” for the “same or similar service.” If, in the “base period,” for example, the lessor provided all maintenance, garaging, gasoline, and the like, he may not elim¬ inate any part of those auxiliary serv¬ ices, such as discontinuing the furnish¬ ing of gasoline or other items previously furnished. If he wishes to reduce any auch service, he must apply for a new rate for a new service as provided under section 5 (c) of this regulation. In his application he must show the reason for and the amount of his proposed re¬ duction in service and there must be a reduction in the rate charged concur¬ rent with any reduction in service. (b) Upon written request supported by. a satisfactory explanation, the ap¬ propriate District Director of the Office of Price Stabilization may approve a re¬ duction in service where it appears that (1) the reduction in service is caused by conditions beyond the control of the lessor, and (2) such reduction in service does not accrue as a savings to the lessor. However, a lessor, who during the “base period” required a minimum period of rental or mileage or collected a service charge, may continue the same practice or charge. Sec. 10. Taxes. Any direct tax upon the rental of “commercial motor ve¬ hicles” covered by this regulation, im¬ posed by any statute of the United States or statute, regulation, or ordi¬ nance of any State or subdivision thereof, may be collected by the lessor in addi¬ tion to the ceiling price established un¬ der this regulation, unless such statute, regulation, or ordinance prohibits the lessor from collecting such tax, and un¬ less such tax if imposed, was absorbed by the lessor during the “base period”. Sec. 11. Rate base. The charges for the rental of any “commercial motor vehicle” shall be computed upon the “rate base”, as defined in section 18 (d) of this regulation, most favorable to the lessee. Sec. 12. Adjustment of ceiling rates and effectiveness of adjustments, (a) A lessor of “commercial motor vehicles” subject to this regulation may, by in¬ dividual application filed with the appro¬ priate District Director of the Office of Price Stabilization, request adjustment of any of his ceiling rates based upon a showing of: (1) Substantial financial hardship; or (2) that the adjustment re- ) quested is necessary to permit the con¬ tinuance of an essential service for which there is no adequate substitute available at a rate equal to or less than the maximum rate requested; and (3) that the rate adjustment requested will not result in a higher ratio of net operat¬ ing revenue to total operating revenue than in the comparable six-month pe¬ riod prior to June 30, 1950. Thirty days after the application has been received by the Office of Price Stabilization dis¬ trict office, or 30 days after receipt of such additional information as may be requested, the lessor may charge the in¬ creased rate unless advised by the Office of Price Stabilization that the applica¬ tion has been denied in whole or in part. The application for rate adjustment may at any time be denied, in whole or in part, and any rate adjustment made here¬ under may be revoked in any case where it' appears to be inconsistent with the purposes of the Defense Production Act of 1950 as amended. The respective District Directors are hereby delegated authority to act upon and to handle to final conclusion all ap¬ plications for rate adjustment filed un¬ der the provisions of this section. (b) Effectiveness of adjustments. Any increased rate requested under this reg¬ ulation may be charged on open billing pending consideration of the application. Collection of any amount in excess of ceiling rates under this Section may not be made until an order has been issued (and then only to the extent permitted thereby), or until written notice of ap¬ proval by the Office of Price Stabilization has been received, or until the appro¬ priate 30-day waiting period has ex¬ pired. After such period, a lessor may collect the full adjusted amount retro¬ active to the date on which the appli¬ cation was filed or to the date on which he entered into any adjustable pricing contract under section 2 (a) of Supple¬ mentary Regulation 15 to the General Ceiling Price Regulation, as amended by Amendment 3. Sec. 13. Where and how to apply for adjustment. Applications for individual relief under section 12 of this regulation shall be made by properly executing O. P. S. Public Form No. 85, Copies of this form may be obtained from the Office of Price Stabilization, Washing¬ ton 25, D. C., or any regional or district office thereof. All such applications shall be filed in duplicate, and shall be sent to the appropriate district office of the Office of Price Stabilization. Applica¬ tions, if mailed, should be sent by reg¬ istered mail, return receipt requested. The date on the return receipt will indi¬ cate the effective date of filing. If the application is delivered in person to the district office, receipt as to the date of filing should be obtained from the docket clerk of such office. Sec. 14. Record keeping requirements. Those engaged in the lease or rental of "commercial motor vehicles" and cov¬ ered by this regulation shall preserve, for examination by the Office of Price Sta¬ bilization, for a period of two years, a record of all rentals or leases subject to this regulation, including as to each transaction the names and addresses of lessees, description of "commercial mo¬ tor vehicle” rental charges, revenues actually received, and, where applicable, mileage involved. Sec. 15. Compliance provisions—(a) Prohibitions. You shall not do any act prohibited or omit to do any act re¬ quired by this regulation, nor shall you offer, solicit, attempt, or agree to do or omit to do any such acts. You shall not, irrespective of any contract or other obligation, sell, and no person shall buy from you, in the regular course of trade or business, at a price higher than the ceiling prices established by this regula¬ tion, and you shall keep, make and pre¬ serve true and accurate records and re¬ ports, required by this regulation. (b) Evasion. No person shall evade this regulation directly or indirectly, whether by payment of charges for com¬ missions or extra services, by decreasing the service, by tie-in agreements or other trade understandings (including but not limited to a requirement by a lessor that a lessee execute a purchase option agree¬ ment in connection with a leasing agree¬ ment, or an understanding between a lessor and a lessee that the latter will not exercise an option to purchase a ve¬ hicle from the former), or by refusing to rent the “commercial motor vehicle” to the lessee for the period for which it is requested in order that a higher “rate 81 Trans 39:3 base” may be used in computing the charge; or in any other way. If you violate any provisions of this regulation, you are subject to criminal penalties, enforcement action, and action for damages. i Sec. 16. Amendments. Any person who seeks an amendment of any provision of this regulation may file a petition for amendment in accordance with Price Procedural Regulation 1, Revised. Sec. 17. Geographical applicability. This regulation applies to the rental or lease of “commercial motor vehicles” in the 48 States and the District of Colum¬ bia. Sec. 18. Definitions. The terms used in this regulation shall be construed in the following manner, unless the context clearly otherwise requires: (a) “Commercial motor vehicle” means any passenger automobile, taxi¬ cab, bus (other than a school bus), truck, truck tractor, commercial trailer or semi-trailer, or any combination thereof, propelled or drawn by mechanical power and used for the purpose of transporting persons or property. (b) "Establishment” means any sepa¬ rate location from which a lessor engages in the rental of “commercial motor ve¬ hicles.” (c) “Operating ratio” means a per¬ centage relationship of the cost of sup¬ plying a rental service to the revenue derived from such rental service. (d) "Rate base” means the mileage or time or combination mileage-time charge established for the rental of a commer¬ cial motor vehicle. (e) "Same or similar service” means the rental or lease of the same or sub¬ stantially the same type of vehicle, equipment, and service on the same rate base. Effective date. This regulation shall become effective September 12, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget In accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. September 7, 1951. ' 1 /_ # . . .<v, ■ . ( - ‘ ./-' - ' ' .• • , • { ■■ "■ ’ ■ 1 ' *, * • — I ‘ . . . . :. •:■ f - V ■ . - . - -•■•'■ : . - •' f I v . ■ ■ . 'ft 9J: . . / ■ m jfl (8-15-52) 81 Trans 39:5 FILE following 8'1 Trans 39:3 Miscellaneous Amendments fAmending Secs, b and 7) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 70 Amendment I AUO. 15. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agepcy [Celling Price Regulation 70, Amdt. 1] CFR 70—Rental or Certain Types or Commercial Motor Vehicles miscellaneous amendments Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161 (15 F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738), Amendment 1 to Ceiling Price Regulation 70 is hereby issued. STATEMENT or CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation 70 is intended to conform cer¬ tain provisions of the regulation to prac¬ tices existing in the motor vehicle rental industry. The changes made by the amendment, refer primarily to the pro¬ visions of section 5 Service not furnished during the “hose period”, and to section 7 Exemption of certain rental-purchase option agreements, of the regulation. The first change in section 5 is con¬ cerned with the 30-day waiting period provided for in the last two paragraphs of that section. Inasmuch as the Office of Price Stabilization has determined that it can complete its action in con¬ nection with reports filed under this sec¬ tion within a shorter period than the 30-day period now provided and, as a shorter period would serve the best in¬ terests of the industry by expediting the establishment of ceiling rates in many Instances, this section is amended to pro¬ vide for a 15-day waiting period. The second change in section 5 pro¬ vides that rates proposed may be charged pending consideration of them by the Office of Price Stabilization. Since the equipment for which rates are proposed is generally in the possession of the lessor during the time the rates are being con¬ sidered, and since a large percentage of the truck and car rental business is transient, a provision for open billing pending OPS action is not practicable. Therefore, it is the opinion of the Di¬ rector that it will be more equitable to allow the collection of the proposed rates, provided ample safeguards are made for refunding any amounts in excess of the finally approved rates. The six changes in section 7 of the regulation are intended to conform its provisions to long-established trade practices in the industry. The first of these changes revises the wording of the regulation to provide that an option to purchase may be exercised only after cancellation or termination of the rental agreement. Secondly, the method of computing the ceiling price of a vehicle in cases where the lessee exercises his right to purchase has been revised. This change was deemed necessary because, in its present form, the provision creates the possibility of vehicles being purchased at prices that may result in lessors finding themselves in the automotive sale business rather than in the rental business. The depreciation factor contained in section 7 (a) (2) has been changed from 2 percent to 1% percent of the retail ceiling price to conform with long estab¬ lished practice in the industry. In addition to the above-described changes, two new paragraphs have been added to section 7. Since the exemption provisions of this section might be used as a guise for evading other regulations of the Office of Price Stabilization, para¬ graph (b) limits the exemption to tract and car rental operators who were doing business as such when Ceiling Price Reg¬ ulation 70 was originally issued. All other lessors must first receive approval of the Director of Price Stabilization for in¬ clusion within the exemption. Such ap¬ proval will be granted upon a showing that the lessor is doing business as a bona fide truck or car rental operator. Paragraph (c) makes the amended sec¬ tion applicable to rental-purchase op¬ tion agreements executed since the issu¬ ance of Ceiling Price Regulation 70. It further limits the effect of the exempt¬ ing provision to January 1, 1953. In the formulation of this amendment, there has been consultation with indus¬ try representatives, including trade as¬ sociation representatives, to the extent practicable, and consideration has been given to their recommendations. The changes effected in Ceiling Price Regulation 70 by this amendment are, in large part, the result of informal sugges¬ tions of the industry affected. While formal Industry Advisory Committee consultation with representatives of the industry was not practicable, it is the opinion of the Director of Price Stabili¬ zation that these changes reflect, gener¬ ally,. the views of the industry. In the judgment of the Director of Price Stabili¬ zation, the provisions of this amendment are generally fair and equitable and are necessary to effectuate the purposes of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Ceiling Price Regulation 70 is amenaed in the following respects: 1. The last two paragraphs of section 5 are amended to read as follows: The respective District Directors are hereby delegated authority to act upon and to handle to final conclusion all re¬ ports filed pursuant to the provisions of this section. Fifteen days after the re¬ port has been received by the appropriate District Office of the Office of Price Sta¬ bilization, or 15 days after the receipt of such additional information as may be requested, the proposed ceiling rate shall be deemed approved unless the lessor is advised by the Office of Price Stabiliza¬ tion that the proposed rate has been dis¬ approved or modified. Upon receipt of the report by the ap¬ propriate District Office the service may be furnished and the proposed rate may be charged, provided the lessor main¬ tains complete records of all persons us¬ ing the service, and all rental agreements expressly provide that any amount col¬ lected in excess of the rate approved by the Office of Price Stabilization will be refunded to the lessees. 2. Section 7 is amended to read as follows: Sec. 7. Exemption of certain rentalr purchase option agreements, (a) Serv¬ ices offered under a rental-purchase op- ion agreement, having a term of not less than i year and granting to the lessee upon its termination or cancellation after 1 year an option to purchase the vehicle or vehicles covered by the agreement, are exempt from the other provisions of this regulation, provided the purchase price specified in the option agreement does not exceed (1) in the case of trucks, trac¬ tors, trailers, semi-trailers and busses, other than school busses, the Office of Price Stabilization retail ceiling price for the same type of vehicle at the time the lease was executed plus make-ready costs minus a deduction of 1 percent of the total of such ceiling price and make- ready costs for each 30-day period from the date of execution of the lease until the date the purchase option is exercised; or (2) in the case of passenger automo¬ biles and taxicabs, the OPS retail ceiling price for the same type of vehicle at the time the lease was executed plus make- ready costs minus a deduction of 1% per¬ cent of the total of the retail ceiling price and make-ready costs for each 30-day period from the date of execution of the lease until the date the purchase option is exercised, and the rental rate under such rental-purchase option agreement does not exceed the lessor’s transient ceil¬ ing rate for such vehicle or vehicles. (b) The exemption contained in this section applies only to (1) lessors who were in the business of renting vehicles on or before September 12, 1951; or (2) lessors to whom this exemption is ex¬ tended by specific authorization of the Director of Price Stabilization. Requests for such authorization shall be made in writing to the Office of Price Stabiliza¬ tion, Services, Transportation and For¬ eign Trade Division, Washington 25, D. C., and shall contain a detailed justi¬ fication for such authorization. (c) The provisions of this section shall apply to rental-purchase option agree¬ ments executed since September 12,1951,, but its provisions shall expire on January 1, 1953, unless extended by a subsequent amendment to this regulation. (Sec. 704, 64 Stat. 816, as amended; 60 U. S. C. App. Sup. 2164) Effective date. This Amendment 1 to Ceiling Price Regulation 70 shall become effective August 20, 1952. Joseph H. Fr exhill. Acting Director of Price Stabilization, August 15, 1952. » f ’\» 'If ■ ■ • ; ■ - . . ■ • . ■ * : . «i ■ • I.; ■ y.m -r ■ ■ . 1 FILE following 81 Trans 39:5 (1-16-53) 81 Trans 39:7 Elimination of Expiration Ceiling Price Regulation 70 Date in Section 7 (c) Amendment 2 JANUARY 16, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 70, Amdt. 2] CPR 70—Rental of Certain Types of Commercial Motor Vehicles elimination of expiration date in SECTION 7 (C) Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this amend¬ ment to Ceiling Price Regulation 70 is hereby issued. STATEMENT OF CONSIDERATIONS Section 7 of Ceiling Price Regulation 70, as amended, provides for the exemp¬ tion from other provisions of the regula¬ tion of certain types of rental-purchase option agreements entered into in con¬ nection with the lease or rental of cer¬ tain types of commercial motor vehicles. Paragraph (c) of section 7 provides, among other things, that the provisions of that section shall expire on January 1, 1953, unless extended by a subsequent amendment to the regulation. That ex¬ piration date was contained in the regu¬ lation because it was felt that the ex¬ emption provisions of Section 7 might be used as a guise for evading other regu¬ lations of the Office of Price Stabiliza¬ tion. Experience has shown, however, that these fears were unwarranted, and there appears to be no reason why the exemption provisions of section 7 should not continue indefinitely. Accordingly, this amendment deletes the automatic expiration date. In view of the nature of tfris amend¬ ment special circumstances have ren¬ dered consultation with industry repre¬ sentatives impracticable. In the judg¬ ment of the Director of Price Stabiliza¬ tion, the provisions of this amendment are generally fair and equitable and will effectuate the purposes of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Paragraph (c) of section 7 of Ceiling Price Regulation 70, as amended, is hereby amended by deleting the follow¬ ing, “but its provisions shall expire on January 1, 1953, unless extended by a subsequent amendment to this regula¬ tion”, so that the paragraph will read as follows: (c) The provisions of this section shall apply to rental-purchase option agree¬ ments executed since September 12, 1951. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This Amendment 2 to Ceiling Price Regulation 70 shall become effective as of January 1, 1953. Joseph H. Freehill, Director of Price Stabilization. January 16, 1953. ' . r ■ FILE following 81 Trans 39:3 (7-15-52) 81 Trans 39:212.1 INTERPRETATIONS CPR70, Sec. 12 ADJUSTMENTS Insurance costs—application under this section required Car rental operator who is required by State law to carry liability insurance, and who now wishes to increase his ceiling prices to include the newly added liability insurance premiums, must apply for adjustment under CPR 70, Section 12. (3/27/52 No. 18) * r .. ♦ ..'i ■ - ' • FILE following 81 Trans 39:3 (10-18-51) 81 Trans 39:9901 OPS PUBLIC FORM NO. PUB85 (8 1/8 X 14) UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D.C. FORM APPROVED BUDGET BUREAU NO. 94-R226 APPLICATION FOR ADJUSTMENT IN RATE CHARGED* BY LESSORS OF COMMERCIAL MOTOR VEHICLES WITHOUT DRIVERS PURSUANT TO CPR 70 Th# Individual company Information reported on thl* form le for u»e In connection with the De¬ fense Mobilixation Program. Pereone who hove occeet to Individual company information ore subject to penalties for unauthorised disclosure. This form may be reproduced without change. 2 * STATEMENT OF OPERATING REVENUE AND EXPENSES (See Item 2 of Instructions) REVENUE AND EXPENSES CURRENT PERIOD BEGINNING t» ENDING It PRE-KOREAN PERIOD BEGINNING It ENDING It A-REVENUES (1) Total rsvsnuss from vehicle rental $ $ (2) Other revenues B* FIXED EXPENSE OF RENTAL OPERATIONS (3) Depreciation (Attach explanation of method) (4) Insurance (5) License and registration fees (6) Personal property tax (7) Garaging and washing 1 * (8) Antidraasa, skid chains and painting (9) Interest paid \ > (10) Supervision (11) Other fixed expense (12) Total (Items 3 through 11) f * i. 81 Trans 39:9902 PAGE I OF PF.85 • CONTINUED C - VARIABLE EXPENSE OF RENTAL OPERATIONS (13) Maintenance (Labor and materials) (14) Tire. (15) Gasoline, oil and grease ■ t * . . (16) Accessories., (17) Other variable expense (18) Totol (Items 13 through 17) » (19) Total filed and variable expense (Item 12 plus 18) (20) Net Income before federal Income tax (Item 1 minus 19) (21) Federal income tax accrued during the periods specified OPS PUBLIC FORM NO. PUSH (PAGE 2) 3- TO BE EXECUTED BY THE APPLICANT . . NAME OF APPLICANT • The applicant hereby certifies that the information supplied in items 1 through 7 of this form and any attachments is true and correct to the best of his knowledge and belief and that: a • Applicant cannot continue to supply commercial motor vehicles, without drivers, at present ceiling rates; b - The applicant is not knowingly paying more for material and labor than the legally authorized ceiliqg prices and wages; and c - The requested maximum price will not result in higher ratio of net operating revenue to total oper¬ ating revenue than in the pre-Korean period. NOTICE - A willfully false statement is a criminal offense. SIGNATURE, OF OWNER OR AUTHORIZED AGENT TITLE DATE SECTION - B - FURNISH THE FOLLOWING FOR EACH CLASS OF VEHICLE OR SERVICE FOR WHICH RATE ADJUSTMENTS ARE REQUESTED (If rate adjustments are being requested for more than one class of vehicle or service, separate statements must be prepared for each requested adjustment and attached hereto). 4A. DESCRIBE THE TYPE OF VEHICLE AND SERVICE FOR WHICH ADJUSTMENT IS SOUGHT (Set Item ha of Instructions) * 41. STATE THE MAINTENANCE AND OPERATINGSUPPLIES AND SERVICES FURNISHED IN CONNECT I ONWITH THIS SERVICE AT THE CEILING RATE ANOAT THEPROPOSED RATE (Set Item 46 of Instructions) V 81 Trans 39:9903 PAGE 2 OF PF-65 - CONTINUED 5- RATE CHANGES PROPOSED A - PRESENT BASIC RATE A - PROPOSED BASIC RATE (1) Per vehicle per hour $ (6) Per vehicle per hour $ (2) Per vehicle per day (7) Per vehicle per day (3) Per vehicle per week (8) Per vehicle per week (4) Per vehicle per month (9) Per vehicle per month (5) Other basic rate (Specify) (10) Other basic rate (Specify) B - PRESENT MILEAGE RATE B - PROPOSED MILEAGE RATE (1) Per vehicle per mile $ (3) Per vehicle per mile $ (2) Other (Specify) (4) Other (Specify) 6. STATE THE AMOUNT OF ADDITIONAL REVENUE ( in do liars) WHICH THE PROPOSED RATES WOULD HAVE PROVIDED HAD THEY BEEN IN FORCE THROUGHOUT THE "CURRENT PERIOD” SECTION C- FILL OUT ONLY IF YOU FURNISH DRIVERS FOR THE OPERATION AND YOUR OPERATION FALLS UNDER SECTION 2 (b) (2) OF CPR 70 7. DO YOU OIRECTLY OR INDIRECTLY FURNISH DRIVERS FOR THIS OPERATION? I | YES NO IF ANSWER IS YES, DESCRIBE IN DETAIL THE ARRANGEMENTS UNDER WHICH THE DRIVERS ARE FURNISHED OPS PUBLIC FORM NO. PUB8SIPAGE 3) INSTRUCTIONS GENERAL INSTRUCTIONS: This form must be submitted to obtain authority to increase the ceiling rate estab¬ lished under Ceiling Price Regulation 70 for the lease or rental of motor vehicles without drivers. Part A of this form need be filled out only once for each application since it covers the whole of the application. Part B must be filled out separately for each type of vehicle for which a rate increase is requested. For example, if you wish to apply for an adjustment of rates applicable to Vi ton pick-ups, 1 Vi ton vans and 1 Vi ton stake-bodies, you must fi e three separate Parte B. However, one Part B may be filed for any number of vehicles, providing the vehicles are allot the same type and are all leased or rented at the same rate. Part C must be filled out only if you furnish drivers but believe that you are nevertheless subject to CPR 70 (see Sec. 2 (2) (b) ). Any additional information that would facilitate the processing of your application should be attached. Item 1: Indicate whether the proposed rates cover all or only a part of your operations. If only a part of your op¬ eration is covered, state which parts are covered and which are not and give some indication of the relative importance oi each. 81 Trans 39:9904 PAGE 3 OF PF-85 - CONTINUED lt*m 2: Fill in the revenue and expense items requested for the current and pre-Korean periods. The “Current Period” is the period of six calendar months most closely preceding the application. The “pre-Korean period” is the corresponding six months during the period January 1949 through June 1950. Example: If “current period” is March 1951 through August 1951 the “pre-Korean period” is March 1949 through August 1949. If the “current period” is January 1951 through June 1951, the “pre-Korean period” is January 1950 through June 1950. If your accounts are not kept in a form that makes possible the use of the break-down of expenses specified, present revenue and expense data in the most comparable form possible. If the vehicle rental service is only a part of your business, the cost data should relate only to the vehicle rental Eortion of your business. If specific cost allocations are not maintained for that portion of the business, the cost should e allocated. This allocation should be made in the same manner for each of the periods reported; an explanation of the method of allocation should be attached to the application. Item 3: Fill out Item 3 completely and sign. Item 4a: Describe the vehicle and the service performed. For example, llA ton International Model K-5, 159 inch wheel base, equipped with a 12 foot van body, transient rental. (Attach separate sheet if necessary). Item 4b: The maintenance and operating supplies and services furnished at the ceiling rate and the proposed rate should be enumerated. For example, if during the base period the applicant furnished all maintenance and all operating supplies necessary to operate the vehicle so state; and state whether these services and supplies will also be furnished under the proposed rates. Any change in service must be explained fully. (Attach separate sheet if necessary). It*m 5: Applicant must state clearly the legal ceiling rates and the proposed rates. Show your present ceiling rate per hour, per day, per week, or per month and your proposed rate on the same basis. If any of the blanks provided do not apply to your rate structure, insert “NA”. Fill in all blanks which do apply to your rate structure and wherever you do not propose an increase indicate the same rate for both “present* and “proposed” rates. NOTE: If your rate is not based on a combined charge per vehicle per hour (or day, or week, or month) plus a charge per mile, or on aflat charge per day, or week, or month, or on a flat charge per mile, attach separate sheet, showing your present and proposed rates. Item 6: Determine the number of hours, days, weeks and/or months that the vehicle type in question was rented out for revenue and the revenue miles driven by that type during the “current period”. Multiply by the appropriate proposed rates to determine what your revenues would have been if the proposed rates had been in effect during the “current period”. Sub¬ tract from this figure the actual revenue earned by this type of vehicle in the current period. Item 7: Fill out Item 7 only if you furnish drivers with your vehicles. TIME AND PLACE OF FILING Two copies of this application properly filled in and signed by the applicant must be filed with the appropriate Dis¬ trict Off i ce. Applications, if mailed, must be sent by registered mail, return receipt requested. The date on the return receipt will indicate the effective date of filing. If the application is delivered in person, a receipt showing the date of filing should be obtained. The adjusted rate shall become effective upon affirmative approval by the appropriate District Office or, in the ab¬ sence of an order of disapproval or a request for further information, upon the expiration of the thirty-day period after filing or after such additional information as may be requested has been supplied. 81 Trans 61:R1 FILE following 81 Trans 39:9904 (2-18-53) (REMOVE to Source File 81 Trans 61:1-3) Exemption of Certain General Overriding Regulation 12 Fuel Products Revision 1 FEBRUARY 12. 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [General Overriding Regulation 12, Revision 1 ] GOR-12—Exemption of Certain Fuel Products Pursuant to the Defense Production Act of 1950, as amended (Public Law 774, 81st Cong.), Executive Order 10161 (F. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738 >, this General Overriding Regulation 12, Revision 1, is hereby issued. STATEMENT OF CONSIDERATIONS The President of the United States has announced that he does not intend to ask for a renewal of price control au¬ thority on April 30. 1953, when the pres¬ ent legislation expires. He has stated that in the meantime steps will be taken to eliminate controls in an orderly man¬ ner. The Office of Price Stabilization has been instructed to proceed accord¬ ingly. This revision of GOR-12 is one of the actions by which OPS is carrying out that instruction. GOR-12 was issued to provide a single listing of certain fuels and related com¬ modities as to which changing condi¬ tions justified removal of price ceilings. A similar general regulation has been is¬ sued for each of the major commodity areas. Since these regulations are gen¬ erally familiar to these sellers affected, the actions removing controls will utilize the convenient pattern already thus pro¬ vided, and will be in the form of amend¬ ments adding additional groups of iteriis which are to be exempted from price control. In this instance, because of several changes which are being made in the body of the regulation aimed at simplification and standardization in re¬ lation to other general overriding regula¬ tions, the action takes the form of a revi¬ sion of GOR-12. This revised GOR 12 exempts from price control the following additional fuel products: All sales heretofore sub¬ ject to CPR 13 (retail sales of petroleum products), all sales heretofore subject to CPR 17 except Number 2 heating oil (gasolines, naphthas, fuel oils and lique¬ fied petroleum gases, natural gas, pe¬ troleum gas, casinghead gas and refinery gas), all sales subject to CPR 32 (crude oil), all sales heretofore subject to CPR 63 (lubricating oil, greases, waxes, and certain other petroleum products), and all sales heretofore subject to CPR 66 (asphalt and asphalt products). This revised regulation also expressly continues the requirements heretofore in effect under the applicable ceiling price regulations respecting preservation of records as to past transactions. In view of the special nature and basis of this revised regulation, consultation with industry representatives was im¬ practicable and unnecessary. REGULATORY PROVISIONS Sec. 1. What this regulation does. 2. Exemptions. 3. Exempt products or transactions (Solid Fuels). 4. Exempt products or transactions (Petro¬ leum). Authority: Sections 1 to 4 issued under sec. 704, 64 Stat. 816. as amended; 50 U. S. C. App. 2154. Interpret or apply 64 Stat. 803; 50 U. S. C. App. 2101-2110. E. O. 10161, Sept. 9, 1950, 15 F. R. 6105; 3 CFR 1950 Supp. Section 1. What this regulation does. This regulation exempts all sales of the products and related services hereinafter listed from any ceiling price regulation issued by the Director of Price Stabili¬ zation. Sec. 2. Exemption. No ceiling price regulation issued by the Director of Price Stabilization shall apply to the products or related services listed in sections 3 and 4 of this regulation. However, any rec¬ ord relating to a commodity or service exempted from price control which you were required to have immediately prior to such exemption shall continue to be preserved, and made available for exam¬ ination by the Office of Price Stabiliza¬ tion or any other authorized agency of the United States, in the manner and for the period stipulated in the regulation requiring you to have such record. • Sec. 3. Exempt products or transac¬ tions (Solid Fuels), (a) Sales by pro¬ ducers or distributors of Pennsylvania anthracite when sold and delivered un¬ der the trade name, “Anthrafilt,” for use as a filter medium. (b) Sales by producers or distributors of bituminous coal when sold and de¬ livered as seacoal facing for use on a non-fuel basis in the preparation of molds for castings. (c) Sales by producers or distributors of Pennsylvania anthracite when sold and delivered under the trade name “Philterkol,” a specially prepared an¬ thracite used as a medium in hot process filtration. Sec. 4. Exempt products or transac¬ tions (Petroleum). (a) All retail sales of petroleum products covered by CPR-13 and the supplements thereto, except Number 2 heating oil. (b) With the exception of Number 2 heating oil. all sales of gasolines, naph¬ thas, fuel oils, and liquefied petroleum gases, natural gas, petroleum gas, cas¬ inghead gas and refinery gas covered by CPR-17. (c) All sales of crude oil covered by CPR-32. (d) All sales of lubricating oils, greases, waxes, and certain other petro¬ leum products covered by CPR-63. (e) All sales of asphalt and asphalt products covered by CPR-66. Effective date. This General Overrid¬ ing Regulation 12, Revision 1, shall be¬ come effective February 12, 1953. Joseph H. Freehill, Director of Price Stabilization. February 12, 1953. — f ijiu ■ ■ ' • %,[■ 'V' B £ FILE following 81 Trans 61:R1 (2-18-53) 81 Trans 61 :R3 Exemption of Petroleum Products in the Territories and Possessions (Adding Sec. 4(f)) OFFICE General Overriding Regulation 12 Revision 1 Amendment 1 FEBRUARY 13, 1953 OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [General Overriding Regulation 12, Revision 1, Amdt. 1] GOR 12—Certain Solid Fuel Exemp¬ tions EXEMPTION OF PETROLEUM PRODUCTS IN THE TERRITORIES AND POSSESSIONS Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this Amendment 1 to General Overriding Regulation 12, Revision 1, is hereby is¬ sued. STATEMENT OF CONSIDERATIONS By Revision 1, of-General Overriding Regulation 12, the Director of Price Sta¬ bilization, pursuant to the President’s program for the orderly removal of price controls, provided for the exemption of certain petroleum products from price control. In the revision of General Overriding Regulation 12 exempting petroleum products, the exemption of sales in the territories and possessions was not cov¬ ered. This amendment is issued to pro¬ vide that petroleum products exempted from price control by this General Over¬ riding Regulation are also exempted in the territories and possessions, except for sales in Puerto Rico of the petroleum products listed in Ceiling Price Regula¬ tion 13 and Ceiling Price Regulation 17. In view of the nature of this action consultation with industry representa¬ tives including trade association repre¬ sentatives has not been deemed prac¬ ticable or necessary. AMENDATORY PROVISIONS Section 4 of General Overriding Reg¬ ulation 12, Revision 1, is amended by adding a new paragraph (f) to read as follows: (f) Petroleum products exempted by this general overriding regulation are also exempted in the territories and pos¬ sessions, except for sales in Puerto Rico of the petroleum products listed in Ceil¬ ing Price Regulation 13 and Ceiling Price Regulation 17. Effective date. This amendment to Revision 1, of General Overriding Regu¬ lation 12, shall become effective Febru¬ ary 13, 1953. Joseph H. Freehill, Director of Price Stabilization. February 13, 1953. ; r... . ; amri'f • (S3-81-S) - , • Vi! ,.v. -■ 'll. t*v ; }:> \n*..r. : n-k ca«i . /it/ ‘m IK:-1 " X'..-it.1 3Di -i ac- ■■ ' 3 ^ or r5 •. «;•: ->• -s ■:< *-*e?:5 - vi UQ< 5:0^ ■- - • •• . • " v ' ‘ i • ■■ ’ ' '' ' < "-• -j'* ? ■ .■ ' .V :" ; • ' ;■ -Ji’j ■■ ./■ 1 • : >V. ' ... • •• : • “ ' .'1 ; : ' '**"• . • . ' . . . . • : ‘ V , vS: r*4) a . ’ I " *> . ‘ , •' ■ • . 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X' • • i ;!» *ii . . f. r FILE following 81 Trans 61:R3 (2-23-53) 81 Trans 61:R5 Solid Fuels and Related General Overriding Regulation 12 Commodities and Services Revision 1 Amendment 2 FEBRUARY 18, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [General Overriding Regulation 12, Revision 1, Arndt. 2| GOR 12—Exemption of Certain Fuel Products SOLID FUELS AND RELATED COMMODITIES AND SERVICES Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this amend¬ ment to General Overriding Regulation 12, Revision 1, is hereby issued. STATEMENT OF CONSIDERATIONS This amendment exempts from price control all solid fuels and related com¬ modities and services not previously ex¬ empted. The nature and basis for this amendment is the same as that for GOR 12, Revision 1, issued February 12, 1953, and the statement of considerations ac¬ companying the latter regulation is equally applicable to this amendment. In accordance with the provisions of GOR 12, Revision 1, any record relating to a commodity exempted from price control which you were required to have immediately prior to such exemption shall continue to be preserved, and made available for examination by the Office of Price Stabilization or any other au¬ thorized agency of the United States, in the manner and for the period stipulated in the regulation requiring you to have such record. In view of the special nature and basis of this amendment, consultation with industry representatives was imprac¬ ticable and unnecessary. AMENDATORY PROVISIONS Section 3 of the General Overriding Regulation 12, Revision 1, is amended by adding the following new paragraphs: (d) Sales of coal, except Pennsylva¬ nia Anthracite, delivered from mine or preparation plant, and related services, covered by CPR 3. (e) Sales of bituminous briquets pro¬ duced at plants in or near the coal fields, and related services, covered by SR 1 to CPR 3. (f) Sales of Pennsylvania Anthracite delivered from mine or preparation plant, and related services, covered by CPR 4. (g) Sales of anthracite briquets pro¬ duced at plants in the Pennsylvania an¬ thracite field, and related services, cov¬ ered by SR 1 to CPR 4. (h) Sales of coal sold for direct use as bunker fuel covered by CPR 21. (i) Sales of solid fuels by Lake Coal Dock operators covered by CPR 27. (j) Sales of solid fuels by retail coal dealers covered by GCPR and SR 2 to GCPR. (k) Sales of coal by tidewater coal dock dealers covered by GCPR and SR 4 to GCPR. (l) Sales of coal for export covered by GCPR and SR 8 to GCPR. (m) Sales of coke, coal chemicals, and coke oven gas, as defined in SR 13 to GCPR, covered by GCPR and SR 13 to GCPR. (n> Sales of coal briquets, petroleum coke briquets, and packaged fuel cov¬ ered by GCPR and SR 78 to GCPR. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment to General Overriding Regulation 12, Revi¬ sion 1, shall become effective February 18. 1953. Joseph H. Freehill, Director of Price Stabilization. February 18, 1953. < fcflClfa f '1£'l :u ij»' L loi Li n . mo a£u ./ o :Oi^o MO fcwiobS bno *hvH brio"’ : ! . •.• ’ OJ t ;:• -'■ 0 ■■l :■■■■-". ’.. * (1ft " ’ . ‘ Iff! • fc ■ i r.r. o I io M‘ »,! •" * .if ft I . ;t J »- i • ... /'Mid**. <UI ■ .•* 9!'. » •• ri ; 1 ss.: r a ►> A n f' . Wi 1 >1 :A V :vr«W1 T o • a • !.'-■ i i- o' :> y b* t>- ; \>m t joitoxi rfoic >>mono»3 . i©»* 1 r ‘|,£ o jbfC a 5 V3n*>sA 1 l ■ ’). O O jn* hj • « t: 1 no I ;vi>H ::i -/ n. awoo tv . j; T!- ; r r ?.i ■ >0 ' .1 i uurid&L b* r noi&*vs£ ■1* o > ’ -in JUT-. .! !j»t ra fif , i t. *cr qol* ' . .: .Ji- 4 8 -• . Horisb or. rtl : ...v' • t>V. 1 \ ... n tvo-' ,st m,-: ' 85 Serv 31:2C1 FILE following 85 Serv Tab (11-26-52) (REMOVE to Source File 85 Serv 31:C1-C17) Imports Ceiling Price Regulation 31 Collation 2 (Including Amendments 1—14) NOVEMBER 26. 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza- Hon, Economic Stabilization Agency [Ceiling Price Regulation. 31. Collation 2] CPR 31—Imports COLL. 2—INCLUDING AMENDMENTS 1-14 Ceiling Price Regulation 31 is repub¬ lished to incorporate the text of Arndts. 1 through 14, inclusive. Ceiling Price Regulation 31 was issued May 4. 1951 (16 P. R, 4184). Statements of Considera¬ tion for Ceiling Price Regulation 31, and for Arndts. 1-14, inclusive, as previously published, are applicable to this repub¬ lication. The effective dates of this reg¬ ulation and the amendments are shown in a note preceding the first section of the regulation. ARTICLE I—SCOPE OP REGULATION Sec. 1. What this regulation does. 2. Applicability and prohibitions. ARTICLE n-PRICING METHOD 3. Formula for sales by Importers. 4. Formula for sales by wholesalers. 6. Retailers. 6. Calculation of base period dollar and cents Import markup. 7. Sellers who cannot price under other sections. 8. Processing. 9. Sale of Imported commodities In a re¬ lated range or line. ARTICLE m-GENERAL PROVISIONS 10. Taxes. 11. Restrictions on multiple handling. 12. Transfer of business or stock In trade. 15. Records. 14. Exemptions. 16. Enforcement. 16. Evasion. 17. Petitions for amendment. 18. Definitions. 10. Appendix. 20. Adjustments. 21. Reports. Authoritt: Sections 1 to 21 Issued under sec. 704, 64 Stat. 8l6, as amended: 60 U. 8. C. App. Sup. 2164. Interpret or apply Title IV, 64 Stat. 803, as amended, 50 U. S. C. App. Sup., 2101-2110, E. O. 10161, Sept. 9, 1950, 16 F. R. 6106; 3 CFR, 1960 8upp. Derivation: Sections 1-21 contained In Celling Price Regulation 31, May 4, 1951 (16 F. R. 4184), except as otherwise noted in brackets following text affected. Effective Dates: CPR 31; The effective date of this regulation shall be September 1, 1961 or such earlier date on which you file the list required by sections 5 or 6 of this regu¬ lation. [Effective date amended by amdts. 1, 3, 5. and 6.) Amendment 1, May 9, 1951. 16 F. R. 4369 Amendment 2, May 24, 1951, 16 F. R. 4936 Amendment 3, June 1, 1951, 16 F. R. 5167 Amendment 4, June 27, 1961, 16 F. R. 6311 Amendment 5, July 13, 1951, 16 F. R. 6800 Amendment 6, July 31. 1951, 16 F. R. 7591 Amendment 7, August 30, 1951, 16 F. R. 8826 Amendment 8, September 11, 1951, 16 F. R. 9077 Amendment 9, August 31, 1951, 16 F. R. 8982 Amendment 10, December 1, 1951, 16 F. R. 11956 Amendment 11, May 10. 1952, 17 F. R. 4145 Amendment 12, August 1, 1952, 17 F. R. 7074 Amendment 13, August 21, 1952, 17 F. R. 7690 Amendment 14, September 12, 1952, 17 F. R. 8261, 8577 ARTICLE I—SCOPE OF REGULATION Section 1. What this regulation does. This regulation provides a formula whereby importers, wholesalers, and re¬ tailers of imported commodities shall compute their ceiling prices for sales thereof on the basis of prices in effect during a base period extending from July 1, 1949, to June 30, 1950, inclusive. All of the provisions of the General Ceiling Price Regulation, except section 14, heretofore applicable to importers and to the sale of imported commodities are superseded hereby except with re¬ spect to the sale of the commodities listed in Appendix A. Sales of the com¬ modities listed in Appendix A shall con¬ tinue to be governed by the provisions of the General Ceiling Price Regulation unless or until otherwise covered by specific ceiling price regulations. With respect to the sale by other than im¬ porters of imported commodities at wholesale and retail levels. Ceiling Price Regulation 7 shall govern the pricing at the retail level of all imported non-food commodities specifically covered thereby, and Ceiling Price Regulations 14,15, and 16 shall govern the pricing at the whole¬ sale and retail level of all imported food commodities specifically covered thereby. Any imported commodity which does not specifically fall within the coverage of Ceiling Price Regulations 7, 14, 15, and 16 shall be priced for wholesale or retail sale under sections 4 and 5 of this regu¬ lation, respectively. Sec. 2. Applicability and prohibi¬ tions—(a) Applicability. This regula¬ tion is applicable to the continental United States. (b) Prohibitions. On and after the effective date of this regulation, regard¬ less of any contract or other obligation, excepting as set forth in section 14 (c) of this regulation, (1) you shall not sell or deliver any imported commodities covered by this regulation at prices higher than the ceiling prices fixed by this regulation; (2) you shall not buy or receive in the course of trade or busi¬ ness any imported commodities covered by this regulation at prices higher than the ceiling prices fixed by this regula¬ tion; and (3) you shall not agree, offer, solicit, or attempt to do anything pro¬ hibited in this regulation. Prices lower than the ceiling prices may be charged, demanded, paid, or of¬ fered. ARTICLE n—PRICING METHOD Sec. 3. Formula lor sales by importers. (a) If you are an importer, your ceiling price for the sale of any commodity cov¬ ered by this regulation to any class of buyer (except retail customers) shall be the landed cost of the commodity, plus a dollar and cents markup based on sales by you of such commodity to that class of buyer during the base period, as cal¬ culated under section 6 of this regula¬ tion. If you made no sales of the com¬ modity during the base period to buyers of that class, your markup shall be cal¬ culated under section 6 of this regulation but by reference to other sales as pro¬ vided for in section 7 of this regulation. (b) Where the commodity you are pricing is owned by you but has not ar¬ rived in the United States, you may esti¬ mate your landed cost of the commodity. Such estimated landed cost shall reflect your purchase contract cost and the costs of importation reasonably to be anticipated and not already included in the purchase contract cost. In the event such estimated costs exceed your actual costs, as finally determined, you shall either remit or credit the difference to- your purchaser. (c) You may not receive a commission from a foreign seller higher than that which you received during the base pe¬ riod, nor may you receive both a com¬ mission from a foreign seller and a markup on the same transaction, with¬ out prior application to and approval thereof by the Office of Price Stabiliza¬ tion, Exports-Imports Branch, Wash¬ ington 25, D. C. In your application you must set forth in detail all of the facts relating to, as well as the historical back¬ ground for, such a request. Sec. 4. Formula for sales by whole¬ salers. If you are a wholesaler of im¬ ported commodities which you sell in essentially the same form in which im¬ ported, your ceiling price for the sale of any such commodity covered by this regulation, except food commodities specifically covered by name or category by Ceiling Price Regulation 14, to any class of buyer shall be your cost of ac¬ quisition plus a base period dollar and cents markup based on sales by you of such commodity to that class of buyer dining the base period, as calculated under section 6 of this regulation. If you made no sales of the commodity dur¬ ing the base period to buyers of that class, your markup shall be calculated under section 6 of this regulation but by reference to other sales as provided for in section 7 of this regulation. 85 Serv 31:2C2 Sec. 5. Retailers—(a) Importing re¬ tailer. If you are an importer who sells at retail the commodities imported by you in essentially the same form in which Imported, your ceiling price for any sale to retail customers shall be the landed cost of the commodity plus a base period percentage markup determined as fol¬ lows: (1) Choose one of the following bases for computing your markup: (1) A commodity by commodity basis e. g., a specific doll; (ii) A category by category basis, e. g., all toys; (iii) A country of origin basis, e. g., imports from the United Kingdom, Switzerland, etc.; (iv) A storewide, departmental or smaller selling unit basis, e. g., a mark¬ up for the furniture sales department; You may elect a different basis for com¬ puting a markup for each department or other selling unit. Once you have elect¬ ed one of the bases of this subparagraph for a department or other selling unit, you must use that basis in determining the markup for all imported commodi¬ ties you price under this section which that selling unit offered or would have offered for sale during the base period. (2) You shall next choose from the base period a representative quarter for your import business for the purpose of calculating your markups. However, if, during this representative quarter, you received no invoices and made no initial offerings of the commodity for which a markup is being determined, you shall refer to your invoices and initial offer¬ ings for that commodity in a quarter within the base period nearest in time to the representative quarter. (3) Determine your percentage mark¬ up by reference to those records avail¬ able to you from the quarter chosen by you which show all your landed costs and initial offering prices. This percentage markup shall be the markup computed on one of the four bases referred to in subparagraph (1) of this paragraph. For example, if you elect a commodity by commodity basis for the men’s and boys’ shoe department, the markup on each commodity offered for sale by that department must be computed separate¬ ly. If, however, you elect a category by category basis for the men’s and boys’ shoe department, and if you divide that department into two categories—e. g., the category of men’s shoes and the cate¬ gory of boys’ shoes—then, in determining the markup of the commodities included in each category, you must refer to the invoices of all the comodities in that category. Each commodity in the same category will have the same markup. If you elect a country of origin basis for a particular department, then all imported commodities in the department must be grouped according to their country of origin. The markup will then be deter¬ mined for each country of origin group¬ ing so that all commodities from the same country that are offered for sale by that department will have the same markup. If you elect a storewide, de¬ partmental or smaller selling unit basis, then, in determining the markup of the commodities offered for sale by that unit during the base period, you must refer to the purchase invoices of all those commodities. Each commodity will have the same markup. All new commodities—that is, com¬ modities that were not offered for sale during the base period—will have their markup determined in the following manner: Ascertain the department of selling unit which, in the base period would probably have been designated as the unit for selling that commodity. If that selling unit uses a commodity by commodity basis, then the new com¬ modity must determine its markup un¬ der section 7 of this regulation. If that selling unit uses a category by category basis or a country of origin basis, then the new commodity must use the markup of that category or country of origin to which it belongs. If that selling unit uses the fourth basis, the selling unit basis, then the new commodity must use the markup of that selling unit to which it belongs. To compute your percentage markup you shall: (i) Total your landed costs as shown on your invoices; (ii) Total your dollars and cents mark¬ ups as calculated from the initial offer¬ ing prices as shown on your invoices; (iii) Divide your total dollars and cents markups by your total landed costs. (4) You shall report all the base pe¬ riod percentage markups for imported commodities calculated by you under subparagraphs (1), (2) and (3) of this paragraph, not later than October 1, 1951. You shall furnish the Office of Price Stabilization District Office in your area by registered letter with the follow¬ ing information: (i) The commodity or commodities you are pricing; (ii) The department or selling unit selling the commodity or commodities during the base period; (iii) Your basis elected under subpar¬ agraph (1) of this paragraph and de¬ scribed by you; (iv) Your representative quarter elect¬ ed under subparagraph (2) of this para¬ graph; (v) The percentage markup per unit you have calculated under this regula¬ tion. (5) For commodities not reported by you under subparagraph (4) of this paragraph and priced after October 1, 1951, you shall determine a percentage markup as provided in subparagraphs (1), (2), (3) of this paragraph, and re¬ port your percentage markup for each such commodity at the end of the calen¬ dar quarter during which it was first priced or offered for sale. You shall fur¬ nish the Office of Price Stabilization Dis¬ trict Office in your area by registered letter with the following information: (i) The commodity or commodities you are pricing; (ii) The department or selling unit selling the commodity or commodities during the base period; (iii) Your basis elected under subpar¬ agraph (1) of this paragraph, and de¬ scribed by you; (iv) Your representative quarter elect¬ ed under subparagraph (2) of this para¬ graph ; (v) The percentage markup per unit you have calculated under this regula¬ tion. (6) If you are unable to determine a markup for such a commodity under sub- paragraphs (1), (2) and (3) of this par¬ agraph, you shall determine your ceiling price and markup under the provisions of section 7 of this regulation. (b) Non-importing retailer. (1) If you are a retailer (but not the importer) of imported commodities which you sell in essentially the same form in which imported, your ceiling price for any such commodity, except imported non-food commodities specifically covered by name or category by Ceiling Price Regu¬ lation 7, and except imported food com¬ modities specifically covered by name or category by Ceiling Price Regulations 15 and 16, shall be your cost of acquisi¬ tion plus a percentage markup calcu¬ lated and reported in accordance with the provisions of paragraph (a) of this section. Use your cost of acquisition wherever “landed costs’’ is referred to in paragraph (a) of this section. (2) If you have no records from the base period enabling you to price under the above provisions, you may either use your store markup or your departmental or other selling unit markup applicable to the imported commodity, reporting this markup pursuant to the provisions of paragraph (a) (4) of this section, or you may determine your ceiling price and markup for that commodity under the provisions of section 7 of this regulation. (c) Imported commodities in inven¬ tory at the effective date. In determin¬ ing your landed costs or cost of acquisi¬ tion for your imported commodities in inventory on the effective date of this regulation, you shall take the invoice cost on the last invoice you received be¬ fore January 26, 1951 for the particular commodity being priced. If you had no invoices for the commodity before Janu¬ ary 26, 1951, you shall take the invoice cost from the first invoice received by you thereafter. [Sec. 5 amended by Arndts. 1, 3 and 7| Sec. 6. Calculation of base period dol¬ lar and cents import markup, (a) If you are an importer, wholesaler or a processor of imported commodities, un¬ less you are a wholesaler pricing an im¬ ported food commodity under Ceiling Price Regulation 14, your base period dollar and cents markup for a commod¬ ity shall be calculated under this regu¬ lation as follows: (1) You ascertain from your records all of your base period sales of the type upon which your base period markup is to be calculated, i. e., either base period sales of the commodity you are pricing to the class of buyer for which you are pricing, or base period sales of a kind you are permitted to use under the pro¬ visions of section 7 of this regulation. (2) You then determine the total dol¬ lar sales value of all such base period sales. (3) You then select, from such base period sales, any sale or sales which rep- 85 Serv 31:2C3 resent at least ten percent of the total dollar sales value of all such base period sales and calculate the weighted average dollars and cents markup per unit over landed cost of the commodity, if you are an importer, or over your cost of acqui¬ sition, if you are a wholesaler or a proc¬ essor, yielded by those selected sales. Such weighted average may be deter¬ mined, as illustrated in the example be¬ low, by computing the total dollar and cents markup for those selected sales (total sales price minus total of landed costs for an importer, or total costs of acquisition, for a wholesaler or proces¬ sor) and dividing that total markup by the total number of units. The result is your weighted average dollar and cents markup per unit for sales of the com¬ modity you are pricing to the class of buyer involved. (If you selected a single sale, which accounts for ten percent of your total dollar sales value of such base period sales, you may use the dollar and cents markup yielded by that single sale. (1) Example: Suppose you base period sales upon which you are calculating your markup under the provisions of this section were as follows: Sale Units Sales price Per¬ cent¬ age of total sales Cost of acquisi¬ tion or landed cost Dollars and cents mark¬ up Dollars and cents mark¬ up per unit #1.... 2,500 $250.00 5% $225.25 $24.75 $0.0099 4,000 400.00 8% 364.00 36.00 .009 «... 11,000 1,100.00 22% 1,012.00 88.00 .008 #4._ 12,500 1, 250.00 25% 1,150.00 100.00 .008 #5..- 20,000 2,000.00 40% 1,850.00 150.00 .00755 100% (11) You may select sales #1 and #2 In order to determine the markup. You may not select either sale #1 or sale #2 alone, since neither sale alone accounts for ten percent of the total dollar sales value of base period sales. Taking the weighted average of the dollar and cents markups yielded by the two sales, you obtain a unit markup of $.000346 ($24.75+$36.00-4-2,600 + 4,000= $.009346). (b) In every case where you calculate for the first time the dollar and cents markup per unit you are going to use or do use in determining the ceiling price of an imported commodity, you shall fur¬ nish the Office of Price Stabilization Dis¬ trict Office in your area by registered letter the following information in du¬ plicate : (1) The commodity. (2) The class of buyer. (3) The dollar and cents markup per unit you are permitted to use under this regulation. List of markups for commodities in in¬ ventory as of May 9, 1951, shall be re¬ ported on or before July 15, 1951. Lists of markups for commodities contracted for as of May 9, 1951, shall be reported on or before July 15, 1951. Lists of markups for commodities neither in In¬ ventory nor contracted for as of May 9, 1951, shall be reported within fifteen days after receipt of the commodity. (Paragraph (b) amended by Amdte. 1, 3 and 11) Sec. 7. Sellers who cannot price under other sections, (a) If you are unable to compute your markup and ceiling price under any of the other sections of this regulation, then your markup and ceil¬ ing price shall be the landed cost or cost of acquisition, as the case may be, plus a base period markup as calculated under section 5 or section 6 of this regu¬ lation, whichever is applicable, based on sales, if you are an importer or whole¬ saler, or initial offerings, if you are a retailer, during the base period of the type set forth below in the following order of preference: (1) Sales of the commodity you are pricing to buyers of the next most close¬ ly related class; (2) Sales, if you are an importer or wholesaler, or initial offerings if you are a retailer, of a comparison commodity to buyers of the class for which you are pricing; (3) Sales of a comparison commodity to buyers of the next most closely re¬ lated class. If you calculate your base period mark¬ up and ceiling price by reference to one of the types of base period sales or offer¬ ings set forth above, you shall, before making sales of the commodity you are pricing, advise the Office of Price Sta¬ bilization, Export-Import Branch, Wash¬ ington 25, D. C., by registered letter, what markup and ceiling price you pro¬ pose to use, showing how they were com¬ puted and describing the “comparison commodity” and/or "class of buyer” used. Unless this proposed markup and ceiling price are rejected by the Office of Price Stabilization within ten days of the postmarked date of your letter, you may proceed with sales until advised to the contrary. (b) If you are unable to compute a markup and ceiling price for the com¬ modity you are pricing, under paragraph (a) of this section, or under any pro¬ visions of this regulation, you may apply in writing to the Office of Price Sta¬ bilization, Export-Import Branch, Wash¬ ington 25, D. C., for the establishment of a markup and ceiling price. Your application shall contain: (1) An ex¬ planation of why you are unable to compute a markup and ceiling price under this regulation; (2) a complete description of the commodity; (3) the nature of your business; (4) your landed costs or cost of acquisition broken down into the elements thereof; (5) your pro¬ posed markup, indicating how it was computed; (6) your proposed ceiling price, indicating how it was computed; (7) a reasonable markup and ceiling price, if any exists currently, and can be ascertained, in the trade for the com¬ modity or for a comparison commodity. If your proposed markup and ceiling price are not rejected by the Office of Price Stabilization within ten days of the postmarked date of your letter, you may proceed with sales until advised to the contrary. (c) Once you have determined under the provisions of this section a markup which has not been disapproved by the Office of Price Stabilization, you may continue to use that markup for future sales of the same commodity to the same class of buyer. (Sec. 7 amended by Arndts. 6 and 7] Sec. 8. Processing. If you are an im¬ porter and also process (as defined in section 18 of this regulation) commodi¬ ties you import, you may, in determining your ceiling price, add the actual costs of processing to your landed costs. If you process imported commodities pur¬ chased from an importer, you may, in determining your ceiling price, add the actual costs of processing to your cost of acquisition: Provided, That if your markup as calculated under section 6 of this regulation included the costs of processing, you may add only those costs of processing which were in excess of the cost of processing during the base period. Sec. 9. Sale of imported commodities in a related range or line, (a) If you are a seller of imported commodities in a related range or line, you may maintain your customary price differentials on those imported commodities, provided that their total sales value does not ex¬ ceed that which would otherwise be their total sales value if you sold the items in the range or line separately at their re¬ spective ceiling prices. (b) Where you have an inventory or purchase commitment of a commodity at a different ceiling price than the ceil¬ ing price of the same commodity re¬ ceived in a different shipment, you may use a uniform selling price (for that commodity), provided that in such case you shall compute a ceiling price for the entire inventory and purchase commit¬ ments by using properly weighted aver¬ age costs of your inventory and purchase commitments, and provided that the total sales value shall not exceed that which would otherwise be the total sales value at ceiling prices for each item in such ilot if sold separately. ARTICLE in-GENERAL PROVISIONS Sec. 10. Taxes. In addition to your ceiling price, you may collect tne amount of any excise, sales, or similar taxes paid by you only if, during the base period, you stated and collected such taxes sep¬ arately from your selling price. In the case of such a tax imposed by law which is not effective until after June 30, 1950, you may collect the amount of the tax actually paid by you, in addition to your ceiling price, if not prohibited by the tax law. You must in all such cases state separately the amount of the tax. Sec. 11. Restrictions on multiple han¬ dling. For the purposes of this Ceiling Price Regulation, markups shall be al¬ lowed only when the following sequences of distribution are followed. These are (a) sales by importers to industrial users, to processors, to wholesalers, or to retailers; (b) sales by wholesalers to industrial users, or to retailers; (c) sales by processors to wholesalers, to retailers or to consumers; (d) sales by retailers to consumers. If you are a wholesaler who buys commodities from another wholesaler, no markup may be added unless specifically authorized by order of the Office of Price Stabilization. Such authorization may be granted upon ap¬ plication to the Office of Price Stabiliza- library university c 85 Serv 31:2C4 tlon, Exports-Imports Branch. Wash¬ ington 25, D. C., when it can be estab¬ lished that the second wholesaler per¬ forms a recognized distributive function in accordance with the usual practice of the trade. Sbc. 12. Transfer of business or stock in trade. If the business, assets or stock in trade of any business were sold or otherwise transferred since July 1, 1949, or are sold or transferred after the effective date of this regulation, and the transferee carries on the business, or continues to deal in the same type of commodities, the maximum prices of the transferee shall be the same as those to which his transferor would have been subject if no such transfer had taken place, and his obligation to keep records sufficient to verify such prices shall be the same. The transferor shall either preserve and make available, or turn over, to the transferee all records of transactions prior to the transfer which are necessary to enable the transferee to comply with the record provisions of this regulation. Sec. 13. Records, (a) This section tells you what records you shall preserve and what additional records you must prepare and keep available for exami¬ nation by the Office of Price Stabilization for so long as the Defense Production Act of 1950 is in effect and for two years thereafter. (b) You must preserve and keep avail¬ able as required in paragraph (a) of this section those records in your possession showing the prices charged by you for the commodities you delivered during the base period, and those records you used to establish the markups you charged during the base period, and those rec¬ ords you used showing how you calcu¬ lated your base period markup. You must also prepare and preserve a state¬ ment of your customary price differen¬ tials. terms and conditions of sale, and classes of purchasers, which you had in effect during the base period. (c) You shall prepare and keep avail¬ able, as required in paragraph (a) of this section, records of the kind you cus¬ tomarily keep; specifically you must also keep records showing the date of each sale or contract, the names of the parties thereto, the prices charged, the landed cost or the cost of the commodity to you. If you are a retailer, however, you are required only to preserve your purchase invoices and to record thereon your sell¬ ing price. (d) If you are a seller who has cus¬ tomarily given a purchaser a sales slip, receipt, or similar evidence of purchase, you shall continue to do so. Upon re¬ quest from a purchaser, any seller, re¬ gardless of previous custom, shall give the purchaser a receipt showing the date, the name and address of the seller, the name of each commodity or service sold, and the price received for it. Sbc. 14. Exemptions, (a) This regu¬ lation does not apply to sales of com¬ modities for which import ceiling prices have been or hereafter will be estab¬ lished under other regulations or sup¬ plements, or to sales of commodities which are specifically exempted from the application of ceiling prices by other regulations or orders of the Office of Price Stabilization. (b) This regulation does not apply to sales of hand knotted oriental rugs and imported handicraft objects which are sold for household or personal use in substantially the same form as imported, and which are the product of individ¬ uals, families, tribes, or other small groups. (c) Nothing in this regulation shall operate to prevent the performance of a written contract for the sale of an imported commodity entered into prior to May 9, 1951 and executed in strict compliance with the provisions of the General Ceiling Price Regulation; Pro¬ vided, (1) That such contract covers a commodity which the seller as of the date of the contract had in inventory or under purchase commitment, and (2) That such contract covers a specified quantity of a described commodity at a fixed price per unit. [Paragraph (c) amended by Amdt. 1] (d) This regulation does not apply to the sale of the commodities listed in Appendix A. (e) This regulation does not apply to the sales of commodities transported into the continental United States for transshipment abroad and which do not enter into the domestic commerce of the United States and which are either, (1) Entered at Customs in transit on a “Transportation and Exportation (TE) entry” or on an “Exportation (Exp.) entry” or (2) Stored in transit in a bonded ware¬ house or stored in a foreign trade zone. Sec. 15. Enforcement. If you violate any provision of this Ceiling Price Regu¬ lation you are subject to the criminal penalties, civil enforcement actions, and suits for treble damages provided for by the Defense Production Act of 1950. Sec. 16. Evasion. Any practice which results in obtaining indirectly a higher price than is permitted by this regula¬ tion is a violation of this regulation. Such practices include, but are not lim¬ ited to, devices making use of commis¬ sions, services, cross sales, transporta¬ tion arrangements, premiums, discounts, special privileges, tie-in agreements or combination sales, and trade under¬ standings. Sec. 17. Petitions for amendment. If you wish to have this regulation amend¬ ed, you may file a petition for amend¬ ment in accordance with the provisions of Price Procedural Regulation 1 (15 P. R. 9055). Sec. 18. Definitions. 'This Ceiling Price Regulation and the terms which appear in it shall be contrued in the following manner: (a) Classes of sellers and buyers—(1) Importer. This term means the person by whom a commodity is imported and who first sells it after importation. (2) Wholesaler. This term means any person who performs a recognized distributive function, purchases imported commodities directly from an importer and who sells or delivers them in essen¬ tially the same form as imported to an¬ other wholesaler, industrial user, or a retailer in accordance with established trade practice. (3) Retailer. This term means any person who buys or receives imported commodities and who actually sells them in essentially the same form as imported to an ultimate consumer other than an industrial or commercial user. (4) Supplier. This term means the person from whom an importer covered by this regulation procures a commodity. (5) Industrial user. This term means a person who uses an imported com¬ modity or commodities in fabrication, manufacture, or production. (6) Retail customer. This term means the person who buys commodities from a retailer in customary retail quan¬ tities and at customary retail prices for the purpose of normal individual or household consumption rather than for resale, fabrication, processing or manu¬ facture. (7) Wholesale customer. This term means the person who is not a “retail customer” and who buys commodities in customary wholesale quantities and at customary wholesale prices for purposes other than for normal individual or household consumption. (8) Seller. This term includes the seller of any commodity. Where a seller at retail makes sales through more than one selling unit or place of business (other than salesmen making sales at uniform prices) each such selling unit or separate place of business shall be deemed to be a separate seller. (9) Class of buyer. This term means that group of persons to which you sell imported products and which you distin¬ guish from other groups of buyers with respect to price or terms and conditions of sale by reason of location, quantity purchased, or functions in distribution, i. e., manufacturer, wholesaler, retailer, processor or end user. (10) Category. This term means a group of commodities which are normal¬ ly classed together in your industry for purposes of accounting or sales. (11) Selling unit. This term means an organizational grouping selling one or more commodities that are classed to¬ gether in your business for purposes of accounting or sales. [Subparagraphs 10 and 11 added by Arndt. 7] (b) Pricing—(1) Commodity. This term Includes not only those items or groups of items generally called com¬ modities, but also materials, articles, or products. (2) Comparison commodity. This term means a commodity which is one with the same or next lowest or high¬ est current unit direct cost, whichever is closer to the cost of the new commod¬ ity, and which has the same essential characteristics as does the new commod¬ ity for which you are computing a ceil¬ ing price. (3) Cost of acquisition. This term means the actual cost of the commodity to a buyer, which shall not exceed the ceiling price of the supplier at the point of delivery plus such costs of delivery actually incurred by the buyer. (4) Foreign invoice cost. This term means the amount stated on your for- 85 Serv 31:2C5 » eign invoice less any discount or allow¬ ances, but including separately stated charges except such charges as are in¬ cluded in costs of importation as herein defined. (5) Costs of importation. This term means those costs actually incurred or to be incurred by you in moving the goods from the place of foreign origin to the place of destination and include, but are not necessarily limited to, for¬ eign export and other taxes directly re¬ lated to the transaction, foreign ocean and domestic transportation costs, cus¬ toms duties, dock charges, clearance, in¬ surance, letter of credit or other finance charges, and any customary buying com¬ mission to a purchasing agent outside the continental United States. (6) Landed cost. This term means the foreign invoice cost plus the costs of importation. If your foreign invoice states charges included in the costs of importation, you shall not include the same item more than once. (7) Purchase contract cost. This term means the price the importer paid for the commodity including any charges and expenses incurred in, or in connec¬ tion with, the moving of the commodity to destination which are borne by the foreign seller. (8) Next most closely related class of buyer. This term means the class of buyer to which you sold, during the base period, the commodity you are pricing, or a ‘‘comparison commodity,” and which in terms of quantity and conditions of sale is most similar to the class of buyer for which you are pricing. (9) Most closely competitive seller of the same class. This term means the seller with whom you are in most direct competition even though he may per¬ form a different function with respect to the commodity. You are in direct com¬ petition with another seller who sells the same types of commodities to the same classes of purchaser in similar quantities, in similar terms and, if you are selling a commodity you supply ap¬ proximately the same amount of service. (10) Inventory. This term means the sum total of stocks or goods owned by the importer which are in the United States, its territories and possessions, or which are afloat destined for the United States, its territories and possessions. (11) Purchase commitment. This term means an agreement between the foreign seller and American buyer for a specified quantity of a described article for definite shipment to the United States, its territories or possessions at a stated fixed price. (c) General—(1) Base period. This term means the period from July 1, 1949 to June 30, 1950, inclusive. (2) Ceiling price. This term means the highest price at which an imported commodity covered by this regulation may be sold. (3) General Ceiling Price Regulation. This term means the General Ceiling Price Regulation issued on January 26. 1951 by the Director of Price Stabiliza¬ tion as amended and supplemented. (4) You or person. This term includes any individual, corporation, partnership, association or any other organized group of persons, or legal successors or repre¬ sentatives of the foregoing, and the United States or any other government or their political subdivision or agencies. (5) Records. This term includes but is not limited to books of account, sales lists, sales slips, orders, vouchers, con¬ tracts, receipts, invoices, bills of lading, and other papers and documents. (6) Sell. This term includes sell, sup¬ ply. dispose, barter, exchange, transfer or deliver. (7) Imported. A commodity is im¬ ported which is transported from a place outside the continental limits of the United States to a place inside the con¬ tinental limits of the United States, its territories and possessions. However, commodities shipped into the United States, its territories and possessions from outside thereof and entered in a foreign trade zone or under general order or in a bonded warehouse for transshipment and actually trans¬ shipped to a destination outside the con¬ tinental limits of the United States shall not be deemed to be “imported”. (8) Delivered. A commodity shall be deemed to have been delivered during a specified period if during that period it was received by the purchaser or his agent or by any carrier, including a car¬ rier owned or controlled by the seller, for shipment to the purchaser. (9) Processing. This term means the sorting, grading, cleaning, repacking, assembling, or otherwise manipulating of a commodity but not to the extent that there results therefrom a new and different article having a distinctive character. The term “processing” in¬ cludes, among other things, the grinding of imported or mixed domestic and im¬ ported spices, seeds or herbs, and the shelling, roasting or salting of imported nuts. If you process imported or mixed domestic and imported spices, seeds or herbs, or if you process imported nuts, you may continue to use your ceiling prices in effect on July 31, 1952 for such commodities, but if you have not pre¬ viously filed for any such commodity under this regulation, you must comply with the provisions of section 7 (b) of this regulation before September 15, 1952 or before making any sales of the commodity, whichever occurs later. [Subparagraph (9) amended by Amdt. 12] Sec. 19. Appendix. The appendix to this regulation entitled “Appendix A” and listing the commodities excluded from the application of this regulation, is incorporated herein and made a part hereof. Sec. 20. Adjustments, (a) Applica¬ tion for adjustment of price under this regulation shall be filed in accordance with Price Procedural Regulation No. 1, Revised. The Office of Price Stabiliza¬ tion may adjust by order any markup es¬ tablished under this regulation for any seller or group of sellers when it can be shown that the applicant had a markup for a commodity substantially below the normal markup in the trade so as to create a situation of hardship; or that the applicant’s dollars and cents markup has become so small because of increased landed costs as to create a situation of hardship. (b) The applicant in filing under this provision shall provide the following in¬ formation: (1) The percentage the sales of the commodity in question bore to the ap¬ plicant's total sales of imports during the six months prior to the date of applica¬ tion for adjustment; (2) An explanation of the abnormal¬ ity of the markup and of the hardship resulting therefrom; (3) His ceiling price under Ceiling Price Regulation 31; (4) His markup under Ceiling Price Regulation 31; (5) His ceiling price under the Gen¬ eral Ceiling Price Regulation; (6) His markup under the General Ceiling Price Regulation; (7) His proposed ceiling price; (8) His proposed markup; (9) An explanation of the method by which he determined his proposed markup. (c) The relief granted under this pro¬ vision shall be no more than may bring the applicant’s markup in line with markups prevailing in the trade. [Sec. 20 added by Amdt. 7] Sec. 21. Reports. Copies of forms that may be used in filing under this regula¬ tion may be obtained from any Regional or District Office of the Office of Price Stabilization. [Sec 21 added by Amdt. 7] Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget In accordance with the Federal Reports Act of 1942. Tighe E. Woods, Director of Price Stabilization. By: Joseph L. Dwyer, Recording Secretary. Appendix A to Chucnq Price Regulation No. 31 1. The Important strategic commodities that are today excepted from this regula¬ tion are as follows: Paragraph Aluminum—metal, ore, foil, alloys_ 207, 374,382 Arsenic, metallic- 379 Bauxite _______6, 207 Bismuth_ 22,377 Cadmium_ 378 Celestlte_ 1776 Chrome—salts, metal and alloys- 8. 301,302 Cobalt, compounds and salts (except oxide)_ 29 Copper—metal, concentrates, blister, compounds, and salts- 5, 76. 302, 381, 387, 1657, 1658, 1869 Corundum and emery_1614,1672 Ferro-alloys_ 302 Iron ore_ 1700 Lead—metal (ores, concentrates, com¬ pounds and alloys_ 46, 391, 392 Magnesite_ 201,204 Magnesium_ 376 Manganese, metal_ 302 Mica, waste and scrap, ground and pulverized_ 208 Molybdenum—metal, ore, concen¬ trates_ 301.302,305,318 Monazlte sand_ 1721 Naval Stores_ 90 (Except gum rosin and gum turpentine) Nickel—ores, concentrates, metal, al¬ loys _ 302. 380, 389, 1734 Platinum_ 1734,1744 Quartz crystals_ 1636 85 Serv 31-.2C6 Paragraph Quinine sulphate, all alkaloids and salts of alkaloids derived from cin¬ chona bark_ 1748 Shellac_ 1707 Spiegelelsen- 301,302 Talc, steatite_ 209 Thorium—metal, ores, alloys, nitrate, oxides and other salts_ 87,302,1721 Titanium—metal, ore, compound and mixtures_ 89, 302,1719 Tungsten—metal, concentrates, pow¬ der, alloys and compounds_ 302 Uranium—ores, metal, alloys, oxides, salts and compounds_ 302,1719,1792 Vanadium—metal, ore, alloys, com¬ pounds, mixtures and salts_ 91, 302,1719 Zinc—metal, ore, concentrates, scrap. 393, 394 2. Important commodities that are highly essential to the basic cost of living that are today excepted from this regulation are as follows: Paragraph Butter and substitutes_ 709 Cocoa—specifically covered by Supple¬ mental Regulation No. 3 to the Gen¬ eral Celling Price Regulation. Coffee—specifically covered by Supple¬ mental Regulation No. 3 to the Gen¬ eral Celling Price Regulation. Eggs... 713 Hides and skins: Calf_ Cattle_ Buffalo_ Cabretta_ Deer_ 1530 (a) 1530 (a) 1530 (a) 1765 1765 Paragraph Hides and skins—Continued Goat. 1766 Horse_ 1765 Kangaroo_ 1765 Kid _ 1765 Kipskins_ 1530 (a) Lamb, Including cooled and shear¬ lings _ 1765 8heep_ 1765 Leather—Including tanned and fin¬ ished, seml-tanned or rough tanned or otherwise partly finished_ 1530 (b), 1530 (d) Leather, made from goat or sheep skins, raw, seml-tanned, rough tanned or pickled_ 1630 (c) Lumber, Including lots_ 401, 402, 404,1803 Meats, fresh, chilled or frozen_ 701, 702, 703, 704 Milk—fresh or sour, whole or skimmed, condensed, evaported, dried, malted..__ 707, 708 Molasses and sugar syrup_ 502 Tea---- 1783 (b) Woven fabrics, containing 25 percent or more of woolen fabric by weight_1108, 1109 (a) 3. Important commodities that are ex¬ cepted from this regulation because they are covered by a United States Government pur¬ chase program today Include the following: Paragraph Rubber, crude, latex and synthetic_ 1558, 1697 Note: The paragraphs referred to and as shown above opposite each category or com¬ modity are the pertinent paragraphs from the current U. S. Tariff Schedule as published by the U. S. Tariff Commission. The purpose of specifying these paragraph numbers Is to fully describe the Item, and the description given In the Tariff Schedule la the governing factor per Item, to the extent such paragraph applies to the Item as stated In the list. 4. Commodities excepted from this regu¬ lation because they are or will be adequately dealt with under other regulations are as follows: Paragraph Distilled spirits—but only when sold by non-lmportlng wholesal¬ ers _ 802 Wines—but only when sold by non- lmportlng wholesalers_ 803, 804 [ Paragraph 4 added by Amdt. 9 ] 5. Any sale of the following Important commodities Is excepted from coverage by this regulation provided that the selling price does not exceed 81-21% per pound, metal content, f. o. b. New York; however, a seller may choose to comply with the pro¬ visions of CPR 31 and calculate a celling price under that regulation even though such price may be higher than the 81.21% per pound price: Tin—metal, ore, concentrates, powder, scrap alloys_ 88, 382, 392, 1785, 1786 [Paragraph 5 added by Amdt. 14] [Appendix A amended by Arndts. 1, 2, 3, 8, 10 and 13] FILE following 85 Serv 31:2C6 (11-26-52) 85 Serv 31:2C7 Definition of Processing Ceiling Price Regulation 31 Amendment 15 NOVEMBER 26, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency |Ceiling Price Regulation 31, Amdt. 15] CPR 31—Imports DEFINITION OF PROCESSING Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 15 to Ceiling Price Regulation 31 is hereby issued. STATEMENT OF CONSIDERATIONS The definition of “processing” in sec¬ tion 18 <c) (9) of Ceiling Price Regula¬ tion 31 is amended to give effect to the exemption from price control of all im¬ ported spices, seeds, and herbs under section 2 (h) (2) of General Overriding Regulation 7, Revision 1 (Amendment 13>. The statement of considerations applicable to the action providing the exemption under GOR 7 is equally appli¬ cable here. This amendment also eliminates the shelling, roasting or salting of imported nuts from the definition of “processing” in section 18 (c) (9) of Ceiling Price Regulation 31. This is done to conform this regulation to CPR 22, under which a supplementary regulation is being issued to provide that persons perform¬ ing such operations constitute manufac¬ turers covered by that regulation. FINDINGS OF THE DIRECTOR In formulating this amendment the Director of Price Stabilization has con¬ sulted extensively with industry repre¬ sentatives, including trade association representatives, and has given full con¬ sideration to their recommendations. In his judgment the provisions of this amendment are generally fair and equitable, are necessary to effectuate the purposes of Title IV of the Defense Pro¬ duction Act of 1950, as amended, and comply with all the applicable standards of that act. AMENDATORY PROVISIONS Section 18 (c) (9) is amended by de¬ leting everything after the first sen¬ tence, so that the section, as amended, reads as follows: (9) Processing. This term means the sorting, grading, cleaning, repacking, as¬ sembling, or otherwise manipulating of a commodity but not to the extent that there results therefrom a new and dif¬ ferent article having a distinctive char¬ acter. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective November 26, 1952. Edward F. Phelps, Jr., Acting Director of Price Stabilization. November 26, 1952. » —* - • . . . , ; ■ ' FILE following 85 Serv 31:2C7 (12-30-52) 85 Serv 31:2C9 Suspensions and Exemptions (Adding Sec. 22) OFFICE OF PRICE STABILIZATION Ceiling Price Regulation 31 Amendment 16 DECEMBER 30, 1952 WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Celling Price Regulation 31, Arndt. 161 CPR 31—Imports SUSPENSIONS AND EXEMPTIONS Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 16 to Ceiling Price Regulation 31 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment to Ceiling Price Reg¬ ulation (CPR) 31 adds a new section to the regulation to clarify the applicability of a General Overriding Regulation <GOR) to imported commodities. Con¬ sistent with prior.linterpretations this section provides that: Unless language appears in a General Overriding Regu¬ lation which limits-the applicability of that regulation to domestic sales only, the General Overriding Regulation cuts across CPR 31. Thus, if sales of a com¬ modity are suspended or exempted from price control generally by a General Overriding Regulation, such suspension or exemption includes sales of imported commodities. FINDINGS OF THE DIRECTOR In view of the nature of this amend¬ ment, special circumstances have ren¬ dered consultation with industry rep¬ resentatives, including trade association representatives impracticable. In the judgment of the Director of Price Sta¬ bilization the provisions of this amend¬ ment are generally fair and equitable, are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended, and comply with all the applicable standards of that act. AMENDATORY PROVISIONS Ceiling Price Regulation 31 is amended by adding the following new section: Sec. 22. Suspensions and Exemptions. When a General Overriding Regulation is issued by the Office of Price Stabiliza¬ tion exempting or suspending controls on certain commodities, unless language appears in the General Overriding Regu¬ lation which limits the applicability of that regulation to domestic sales only,, the General Overriding Regulation is applicable to all sales of such commod¬ ities otherwise under this regulation. (Sec. 704, 64 Stat. 816. as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment shall become effective January 5, 1953. Joseph H. Freehill, Director of Price Stabilization. December 30, 1952. . f : -• ' 1 - ' ' : • ' -• : • ■ - - : • .. ■ .• ' . . . ' . T • • ■ 1 : ■ ■ . «;•••• ft li ■ FILE following 85 Serv 31:C9 (7-10-52) 85 Serv 31:201.1 INTERPRETATIONS CPR31, Sec. 1 IMPORTER Person through whom seller bills--when not importer Purchaser located in U. S. orders goods from Canadian subsidiary of U. S. cor¬ poration to be shipped to destination in U. S. for re-exportation by purchaser, and the goods are sold to the purchaser f.o.b. a shipping point in Canada. Because the purchaser desires that payment be made.in U. S., the Canadian corporation bills the purchaser, through its U. S. parent corporation, for exactly the same amount for which it was billed by Canadian subsidiary and receives payment from the pur¬ chaser. Under these circumstances the U. S. corporation is merely the agent of its Canadian affiliate. The purchaser, rather than the U. S. -corporation, is the importer of the goods and hence the U. S. corporation is not subject to CPR 31. The U. S. corporation furnishes a service to its Canadian subsidiary and should file a statement of such service with the appropriate district office, even though the service is rendered gratuitously, under Section 18(b) of CPR 34. (5/16/52 No. 42) -i'. v;i . .. ■ , v • ■ • • • - • . ■ - ' P". :• •• - . ;■ ■ •: ^ -#*?*?* * mm ... .. *• : •' • • • ■ • i r '■ • . ; ■ , : . ' ' - l % FILE following 85 Serv 31:201.1 (10-13-52) 85 Serv 31:201.3 INTERPRETATIONS CPR 31, Sec. 1, (App. A-2) EXCEPTIONS Woolens scarves and knitted cashmere sweaters not included Inquiry has been received whether imported woolen scarves and knitted cashmere sweaters are "woven fabrics" within the meaning of Appendix A-2 of CPR 31 and thereby excepted from the coverage of the regulation. Imported woolen scarves and knitted cashmere sweaters are not considered to be fabrics and hence are not included within the exception contained in Appendix A-2. Accordingly, these imported commodities must be priced pursuant to CPR 31. (9-16-52 No. 8) • l • ■ . *£ U t i- j i J i ■ ■ ■ ■ ■ ■ ■ ' ■ _» v •. • r •« £*'. ! ffc’AfV\ ; ' r,-A ■ ■.;. “ > ■'; - ■. - . .. r, : • • ■ : . * ■ * * ■ FILE following 85 Serv 31:201.3 (11-10-52) 85 Serv 31:201.5 INTERPRETATIONS CPR 31, Sec. 1 COVERAGE Imported soyabean meal included Sales of imported soyabean meal by importers, wholesalers and retailers are covered by CPR 31, not by SR 3 to the GCPR. (9-8-52 No.15) =» * £k * ' oi bp .‘jo ? b.‘ t l ire: O* >-tUP) * . ■ / FILE following 85 Serv 31:201. 5 (12-12-52) 85 Serv 31:201.7 INTERPRETATIONS CPR 31, Sec. 1 SUSPENSIONS Imported soft surface floor coverings included (see Interps. following GOR 5, Rev. 1, section 105, page 65 Dur 11:2105.1) I # , . ;• * 1 ' - . ... ' ‘ A « • > • . .,.iv . . • .'■<rr* • . > ■' 1 s ■ ' • ?*. • •• ■' • ^ \ U .. V ■ “ - 5' 1 i vou 4 FILE following 85 Serv 31:201. 7 (12-31-52) 85 Serv 31:201.9 INTERPRETATIONS CPR 31, Sec. 1 COVERAGE Imported watches included. (See interps.-following CPR 22, Sec. 1, page 42 Reg 33:201. 7) I ■ - FILE following 85 Serv 31:201.9 (1-22-53) 85 Serv 31:201. 11 INTERPRETATIONS CPR 31, Sec. 1 COVERAGE Sales at cost by wholesaler to affiliated corporation, included (see Interps. following CPR 31, section 6, page 85 Serv 31:206.1) » ■ FILE following 85 Serv 31:201.11 (3-13-53) 85 Serv 31:201.13 INTERPRETATIONS CPR 31, Sec. 1 COVERAGE Importer of sewing machine heads for resale in a package with other parts required for an electric sewing machine, included (see Interps. following CPR 22, Sec. 47, page 42 Reg 33:247.23). . FILE following 85 Serv 31:201.13 (3-23-53) 85 Serv 31:201.15 INTERPRETATIONS CPR31, Sec. 1 COVERAGE Foreign product, manufactured from U. S. parts, included (see Interps. following CPR 22, Sec. 1, page 42 Reg 33:201.23). » ■ (i - • . ■ FILE following 85 Serv 31:201. 11 (1-22-53) INTERPRETATIONS CPR 31, Sec. 4 APPLICABILITY On sales at cost to affiliated corporation (see Interps. following CPR 31, section 6, page 85 Serv 31:206.1) ■ A -f ' FILE following 85 Serv 31:201.1 (8-4-52) 85 Serv 31:205.1 INTERPRETATIONS CPR 31* SEC . 5 IMPORTED COMMODITIES Commodity by commodity basis chosen in absence of refiling CPR 31, Section 5, as amended by Amendment 7, does not require retailers who filed prior to the issuance of such amendment to refile. Within the meaning of Section 5, as amended, retailers who filed prior to the issu¬ ance of such Amendment 7 are considered to have chosen a commodity' by commodity basis for their entire store. (5/7/52 No. 12) 3 031 - 3 v $ r. o3 ■ ' 2 '« . , -J . -i. v- •saitmi. J * ' a ' FILE following 85 Serv 31:205.1 (10-31-52) 85 Serv 31:205.3 INTERPRETATIONS CPR 31, Sec. 5 RETAIL CEILING PRICES FOR IMPORTS May not be determined by foreign manufacturer's suggested price list The question is whether farm equipment dealers in this country who handle products manufactured by a company in Canada and imported in this country may sell at the manufacturer’s suggested factory list prices. The ceiling prices for sales by dealers of imported farm equipment are established by CPR 31, Imports. This regulation does not permit a retailer of imported commodities to establish his ceiling prices by reference to the for¬ eign manufacturer's suggested retail prices. It is not feasible to establish ceiling prices for sellers of imported commodities on this basis, since OPS has no power to control the suggested resale prices of a foreign manufacturer. (8/13/51 No. 20) 1‘~ if FILE following 85 Serv 31:205. 3 (1-22-53) 85 Serv 31:206.1 INTERPRETATIONS CPR 31, Sec. 6 APPLICABILITY Report required on sales at cost to affiliated corporation A corporation, continuing its base period practice, purchases imported shells and resells them at its cost of acquisition to an affiliated corporate manufacturer. The latter converts the shells into buttons and resells them to the corporation. Inquiry is made as to whether the corporation’s sales to its affiliate are subject to CPR 31 and, more particularly, whether the corporation is covered by sections 4 and 6 thereof Under the facts given and in the light of the definition of ’’sell’’ in section 18 (c)(6), the corporation is a seller under the regulation.* Sales of imported shells are subject to CPR 31 providing that such sales are made, by those persons, inter alia, who are wholesalers within the special meaning of CPR 31. The commodity here involved is imported, and under section 18(a)(2) the importer is a wholesaler since it resells to an ’’industrial user", namely, the affiliate, who is a person ut ng an imported commodity in fabrication or manufacture as required under section J.8(a)(5). It follows from the foregoing that the above described sales by the corporation are covered by CPR 31. Since the coloration is a wholesaler with base period experience it prices under the method provided in section 4. In addition, it must comply with the reporting requirements of section 6(b) notwithstanding the fact that the sales to its affiliate are at cost of acquisition and without markup. (12-2-52 No. 12) *The inquirer states that the transfer from the corporation to its affiliate includes the passage of title and it is assumed for the purpose of this interpretation that a sale is involved. Such assumption makes unnecessary a discussion of the questions that would be raised in the event that the affiliate is, in fact, performing in¬ dustrial services for the corporation. (£ PILE following 85 Serv 31:201.1 (7-15-52) 85 Serv 31:207.1 INTERPRETATIONS CPR 31, Sec. 7 COMPARISON COMMODITY Domestic commodity may be used where foreign commodity not available. Under CPR 31, Section 7(a)(2) an importer who is unable to locate a comparison commodity of foreign origin, may use a comparison commodity of domestic origin provided its basic cost and essential characteristics are most nearly the same as the new imported commodity. (5/7/52 No. 10) - ; A ■' ¥0- • , • ' > J ' 0 • ’■ '■ ■■■ . i FILE following 85 Serv 31:207. 1 (12-1-52) 85 Serv 31:218.1 INTERPRETATIONS CPR 31, Sec. 18 WHOLESALER Importers not included (see Interps. following SR 29 (GCPR) see 2, page 42 Reg 11:3152.1) . ® OiTAT3*:>■ ■! ~W \ 1 FILE following 85 Serv 31:218.1 (12-8-52) 85 Serv 31:218c. 1 INTERPRETATIONS CPR 31, Sec. 18(c)(9) PROCESSING Does not include conversion of raw herring to pickled herring A seller who buys herring from Newfoundland, which he cuts into small pieces and which, after adding pickling, spices and brine, he packs in small size containers for sale to wholesaler and retailers is not engaged in processing as that term is used in section 18(c)(9) of Ceiling Price Regulation 31. Under that section "processing," as defined, includes: Sorting, grading, cleaning, repacking, assembling, or otherwise manipulating of a commodity but not to the extent that there results therefrom a new and different article having a distinctive character. The seller in this case is, in effect, converting raw whole or slightly salted herring into pickled herring to be sold in containers and is therefore a manu¬ facturer. However, since paragraph 24 of Appendix A of CPR 22 excludes non-sterile fish products, the sale of such herring is subject to GCPR. (10-23-52, No. 25) * v pa sfcy|| j ; FILE following 85 Serv 31:207.1 (11-20-52) 85 Serv 31:301 Ceiling Prices for Baler and Binder Twines Manufactured in Canada Ceiling Price Regulation 31 Supplementary Regulation 1 NOVEMBER 20. 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 31, Supplementary Regulation 1] CPR 31—Imports SR 1—CEILING PRICES FOR BALER AND BINDER TWINES MANUFACTURED IN CANADA Pursuant to the Defense Production Act of 1950 as amended. Executive Order 10161 (15 P. R. 6105), and Economic Sta¬ bilization General Order No. 2 (16 F. R. 738), this Supplementary Regulation 1 to Ceiling Price Regulation 31 is hereby issued. STATEMENT OF CONSIDERATIONS Baler and binder twines manufactured in Canada from sisal and henequen fibres are identical with such twines manufactured in the United States, and to the extent that they are sold in the United States, have always been sold on a directly competitive basis with and at the same prices as domestic twines. Jobbers and wholesalers of baler and binder twines have customarily not dis¬ tinguished between such twines manu¬ factured in Canada and domestic twines, either as to identity for filling orders or as to price, and these twines are nor¬ mally commingled in warehouses. Domestic twines are covered by Sup¬ plementary Regulation 89 to the General Ceiling Price Regulation. Twines man¬ ufactured in Canada are covered by Ceiling Price Regulation 31 with respect to sales by importers and wholesalers. Due to the different techniques of these two regulations, ceiling price differen¬ tials may be created between Canadian and domestic twines due to fluctuations in cost, resulting in differences in mark¬ ups. In an industry where customarily no distinction is made between Canadian and domestic twines, a difference in markup by operation of ceiling price regulation constitutes an inducement to the seller in the United States to tend to favor one source of supply or the other. Where the commodity involved is an important one in our economy, the resulting distortion of normal channels of distribution may tend to aggravate a condition of short supply. It is desirable, therefore, that sellers of Canadian and domestic twines should be able to follow their customary practices of commin¬ gling the twine and selling both twines at the same prices. This will operate to relieve possible inequities and to prevent an unnecessary burden of bookkeeping and warehouse segregation, according to the place of manufacture, of what is essentially the same commodity. This supplementary regulation to CPR 31 establishes the ceiling prices for do¬ mestic twines as the ceiling prices for similar twines manufactured in Canada. (This action does not affect sales of sisal and henequen fibres, which are presently covered by CPR 31.) Due to the nature of this action, for¬ mal consultation with the industry rep¬ resentatives, including representatives of trade associations, has not been prac¬ ticable. However, there have been nu¬ merous consultations with individual members of the industry and considera¬ tion has been given to their recommen¬ dations. In the judgment of the Director of the Office of Price Stabilization, this supple¬ mentary regulation is generally fair and equitable and will effectuate the purpose of Title IV of the Defense Production Act of 1950, as amended. REGULATORY PROVISIONS Sec. 1. Applicability. 2. Sales by Importers and wholesalers. 3. Definitions. 4. Miscellaneous. Authority : Sections 1 to 4 Issued under sec. 704, 64 Stat. 816, as amended; 60 U. 8. C. App. Sup. 2164. Interpret or apply Title IV. 64 Stat. 803, as amended; 60 U. S. C. App. Sup. 2101-2110. E. O. 10161, Sept. 9. 1960, 16 F. R. 6106. Section 1. Applicability. This supple¬ mentary regulation applies to all sales by importers and wholesalers in the United States of imported baler and binder twines manufactured in Canada from sisal and henequen fibres which are otherwise covered by CPR 31. Sec. 2. Ceiling prices. The ceiling prices of importers and wholesalers for sales covered by this supplementary reg¬ ulation shall be the same as their ceiling prices for sales of similar twines of the same grade which are manufactured in the United States. Sec. 3. Definitions. The term “whole¬ saler” and “wholesale customer” is de¬ fined in section 18 of CPR 31. For the purpose of this supplementary regula¬ tion, a sale by a wholesaler to a farmer is considered to be a sale to a wholesale customer. Sec. 4. Miscellaneous. Except as herein modified, all the provisions of CPR 31 remain in effect with reference to sales made under this supplementary regulation. Effective date. This supplementary regulation to CPR 31 shall become effec¬ tive on November 25, 1952. Joseph H. Freehill, Acting Director of Price Stabilization. November 20, 1952. • H ■ • ' V • • > ' •. i- • 1*. 'c . •'■•••it: . ■ ■ • ■ ■ / •'•■•; I ■ • ■ . ’ . 1>r • 5- . .• i\ nirt ' '■ . . - - . . » • ■ ...... • • >t ■ • • . " n *■ f. ■ ’v ■. v : \) I* . • u .. .. . -T f, . ? ' A . • . s. • - ' • ‘shi . • i .. k r [U- •• ’ . • •. . • ■ ■ ••'.:! ' ’.il'-". * . . ’ '•• > -■ ■ ■ • ■ ,rr,. ■ • ' '..if. ' .fc *'■ ' / u» }'. ’ .■ •. • • il FILE following 85 Serv 31:301 (1-16-53) 85 Serv 31:401 Imported Steel Ceiling Price Regulation 31 Supplementary Regulation 2 JANUARY 16, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 31, Supplementary Regulation 2) CPR 31, SR 2—Imported Steel Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabiliza¬ tion Agency General Order No. 2, this Supplementary Regulation 2 to Ceiling Price Regulation 31 is hereby issued. STATEMENT OF CONSIDERATIONS Normally, prices in the United States for imported steel must be competitive with, and are therefore limited by, prices for steel domestically produced. When the supply of domestic steel is insuffi¬ cient to meet the demand and is subject to allocations or price control sellers of imported steel are able to obtain prices substantially in excess of domestic steel prices. Recently, shortages of domestic sup¬ ply have produced a condition under which imported steel and steel mill products are in relatively high demand. This extraordinary demand may well produce pressures which induce distor¬ tions in the price structure and in the distribution pattern for such steel. Sell¬ ers who had not been in the business of importing steel prior to or during the base period have undertaken the busi¬ ness of importing and selling steel. Other sellers who have been in this busi¬ ness previously have undertaken in some cases to obtain higher prices for the steel by by-passing their usual buy¬ ers. These conditions tend to change the normal pattern of distribution, caus¬ ing inflationary pressures that are a common result of such changes. The importation and distribution of imported steel are presently covered, with respect to the establishment of ceil¬ ing prices, by either Ceiling Price Regu¬ lation 31 or Ceiling Price Regulation 98, depending upon the specific combination of importation and distribution involved. For most sellers, these regulations are sufficient. However, under the situation that presently exists, the specific appli¬ cations of these regulations in the various types of situations presented are insufficient for ‘a number of major rea¬ sons. First, in a quickened market the application of more than one regulation makes enforcement more difficult than would be the case under a single clear regulation. Second, sellers of imported steel may be put to a disadvantage where they are not able to determine quickly just what their permissible ceil¬ ing price is, inasmuch as the risk in¬ volved in dealing in imported steel under the present conditions is increased where delays are encountered in com¬ pleting transactions. Third, new sell¬ ers, or old sellers dealing in new items of imported steel, may encounter un¬ avoidable delays in establishing ceiling prices for their sales. For these reasons, it is necessary to issue this supplementary regulation. The regulation provides specific dollars and cents markups for various categories of imported steel and steel mill products which an importer must use to determine his ceiling price. In addition, when steel or steel mill products are warehoused, the regulation provides for markups for such warehousing which are in line with the markups allowed for domestic steel. Further, limitations are placed upon multiple handling and unreasonable warehousing to prevent a pyramiding of markups by resellers of steel. In the formulation of this supplemen¬ tary regulation, there has been consul¬ tation to the extent practicable with industry representatives, including trade association representatives, and con¬ sideration has been given to their recom¬ mendations. In the judgment of the Director of Price Stabilization, the pro¬ visions of this supplementary regulation are generally fair and equitable, are necessary to effectuate the purpose of Title IV of the Defense Production Act of 1950, as amended, and comply with all of the applicable standards of that Act. Sec. 1. What this supplementary regulation does. 2. Applicability. 3. Ceiling prices for importers; specified markup. 4. Ceiling prices for resellers; specific mark¬ ups. 5. Addition for warehousing. 6. Definitions. 7. Miscellaneous. Authority; Sections 1 to 7 issued under Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Supp. 2154. Interpret or apply Title IV, 64 Stat. 803, as amended; 50 U. S. C. App. Supp. 2101-2110, E. O. 10161, September 9, 1950, 15 F. R. 6105, 3 CFR, 1950 Supp. REGULATORY PROVISIONS Section 1. What this supplementary regulation does. This supplementary regulation establishes specified dollars and cents markups to be used in deter¬ mining ceiling prices for the sale of im¬ ported steel and steel mill products by importers and resellers of such com¬ modities to the extent that their sales are covered by CPR 31. Methods are also provided for computing an addi¬ tional markup by importers and whole¬ salers who warehouse such of these commodities which are covered by CPR 31. Sec. 2. Applicability. This supple¬ mentary regulation applies to sales of imported steel and imported steel mill products by importers and wholesalers thereof to the same extent as CPR 31, that is, in the continental United States to all sales of imported steel and im¬ ported steel mill products by the import¬ er thereof and to all such sales by resellers to the extent that such sales are covered by CPR 31 (and not by CPR 98). Unless otherwise provided by this supplementary regulation, the markups established under this supplementary regulation must be used in place of any other markups otherwise determined under CPR 31. Sec. 3. Ceiling prices for importers; specified markup, (a) The ceiling price per ton, FOB importer’s receiving point, for sales by the importer thereof to any reseller, end user, or the government of the United States or any State, or any Agency or political subdivision thereof, located in the United States of the fol¬ lowing ordinary hot-rolled low-carbon steel mill products, whether coated or uncoated, shall be the landed cost of such commodity plus the applicable markup shown below: 1. A markup of $15.00 per ton for: Angles, tees, beams. Billets. Channels, zees. Sheet bars, ingots. Commercial bars. Wire. Reinforcing bars. Sheet piling. Wire rods. 2. A markup of $20.00 per ton for: Hot and cold rolled sheets. Blades. Strip. Cold finished bars. Quality steels (special analyses). Nails. Galvanized barbed wire. 3. A markup of $25.00 per ton for: Oil country tubular products. Wire rope. Alloyed steels. 4. A markup of $20.00 per ton for all other steel mill products not otherwise specifically listed in this section and cov¬ ered by this supplementary regulation. (b) The importer may add to his ceil¬ ing price the actual transportation charges made by others for delivery to his buyer which are paid by the importer. Sec. 4. Ceiling prices for resellers; specific markups, (a) Except as other¬ wise provided, the ceiling prices for sales at wholesale of the commodities shown in section 3 shall be the cost of acquisi¬ tion to the reseller plus the markups specified for importers in section 3. (b) When a reseller buys a commod¬ ity described in section 3 from another reseller, then the ceiling price for his sale of such commodity shall be the ceil¬ ing price of his supplier. 85 Serv 31:402 (c) A reseller may add to his ceiling price the actual transportation charges made by others for delivery to his buyer which are paid by the reseller. Sec. 5. Addition for warehousing—(a) Ey importers. Any importer covered by this supplementary regulation who warehouses steel or steel products im¬ ported by him may add to his ceiling price for sales as an importer estab¬ lished under section 3 of this supple¬ mentary regulation an additional dollars and cents markup for such warehousing computed as follows: (2) For the commodities not described in Table 1: A markup equal to the mark¬ up provided for sales by importers in section 3 of this supplementary regula¬ tion. (b) By resellers. Any reseller covered by this supplementary regulation who warehouses imported steel or steel mill products not included in Table 1 of para¬ graph (a) of this section may add to his ceiling price established under section 4 of this supplementary regulation a dol¬ lars and cents markup computed in the same manner as provided for importers in section 5 (a) (2) above. (c) By buyers of warehoused com¬ modities. The ceiling price for the sale (1) For the commodities described in Table 1: Multiply the mill base price for domestic steel which is similar to the imported steel you are pricing by the applicable percentage markup shown in Table 1 according to the area in which the warehouse from which you are mak¬ ing the sale is located. The mill base price shall be the price at-the producing mill nearest to the location of your ware¬ house and it shall be that price listed by the mill on the date the imported steel is entered in your warehouse. Extras are allowed only where indicated in Part n of Table 1. by any person of any commodity covered by this supplementary regulation which is purchased from a warehouse shall be the ceiling price of his supplier. (d) No markup shall be permitted un¬ der this section for any direct sale. No markup shall be permitted under this section for any sale made prior to receipt of the steel by the seller when it is not necessary to perform any warehousing operation on the steel such as cutting, coating, or otherwise processing the steel beyond storage, provided that the markup may be taken in such cases where circumstances beyond the control of the seller require that the steel be taken into the warehouse prior to de¬ livery to the purchaser. Sec. 6. Definitions—(a) Warehousing. Warehousing of iron and steel prod¬ ucts consists of performing such opera¬ tions as receiving, storing, sorting, grading and shipping, and other opera¬ tions which are necessary or incidental to the resale and distribution of such commodities after they are brought into premises regularly maintained and equipped with facilities for performing these operations. In no case, however, will such operations be considered as having been performed unless the prem¬ ises referred to are owned, rented, or otherwise regularly maintained by the owner of the material at the time it is put through such operations. The op¬ eration of warehousing of iron or steel products will not be considered as having been performed if the premises referred to are a public warehouse, except if you regularly maintain space in a public warehouse equipped with facilities for performing warehousing operations and in which you perform the operations of warehousing for your own account for which your records indicate that you charged a warehouse markup over your invoice costs. No commodity being sold under this supplementary regulation shall be deemed to have been the subject of a warehousing operation for the pur¬ pose of determining a markup unless the specific commodity being sold has been subject to the warehousing operation as defined herein. (b) Direct sale. This term means the sale of an imported iron or steel product which is transported from an importer’s receiving point to a buyer without being put through a warehousing operation. (c) Importer’s receiving point. This term means the point at which the steel is received from abroad by the importer which he uses for computation of his landed cost. (d) Reseller. This term means a per¬ son who performs a recognized distrib¬ utive function, buys an imported com¬ modity of which he is not the importer, and resells it in essentially the same form to a retailer, industrial, commer¬ cial or institutional buyer, another re¬ seller, or to the Federal or any State Government or any Agency or political subdivision thereof in accordance with accepted trade practice. Sec. 7. Miscellaneous. Except as here¬ in modified, all the provisions of CPR 31, including applicable record-keeping and reporting requirements, remain in effect with reference to sales made under this supplementary regulation. Effective date. This supplementary regulation 2 to CPR 31 shall become effective on January 21, 1953. Joseph H. Freehill, Director of Price Stabilization. January 16, 1953. Table 1—Part I Product Metro¬ politan area, New York State of Cali¬ fornia State of Texas States of Oregon and Wash¬ ington AH others Standard structural shapes---- - Percent 56 Percent 47 Percent 56 Percent 51 Percent 52 55 60 56 51 52 55 60 56 51 52 Wide flange beams_ 57 47 65 51 52 Hot rolled carbon bars and bar shapes -. -... . -.. 52 41 56 50 45 Hot rolled carbon plates. ___ _ 55 46 53 52 50 Floor plates___-__ 47 56 44 50 43 Abrasion resisting—All products- - - 54 60 60 64 60 Hot rolled carbon sheets__ 56 46 57 52 51 59 50 63 56 54 Cold rolled sheets_ 46 47 43 46 43 Cold rolled and hot rolled electrical (silicon) sheets, all grades. 56 56 56 56 56 52 52 52 52 52 Cold rolled strip-low carbon_ 48 48 48 48 48 High tensile low alloy—All products--- Cold finished carbon bars_ _ _ 48 50 48 50 48 36 31 59 46 33 Reinforcing bars unlabricated-- ... - Tin plate, black plate and short temes--- 52 41 56 50 45 45 45 45 45 45 Table 1—Past II Product Percentage markup Permitted extras Galvanized sheets—hot dipped ...-... - 50 Mill extras for gage (24- to 30-inch width) and coating. Do. Do. Galvannealed, electric coated sheets and other related zinc coated sheets. Terne coated long sheets____ .. . . . 50 50 Alloy bars: 50 Mill extras for grade (chemistry). Do. Cold finished..-.- 50 50 Do. TonffttApl shpptA fannrnTimatplv 1 npreent carbon erade) _ _ 45 None. 54 Do. California All other “4130” aircraft sheets: 0.1875 and heavier... 40 40 None. 0.160 and lighter_*.. 50 40 Do. “1020 grade” aircraft sheets__ 50 40 Do. FILE following 85 Serv 31:402 Correction (2-4-53) 85 Serv 31:403 Ceiling Price Regulation 31 Supplementary Regulation 2 Correction FEBRUARY 4, 1953 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 31, Supplementary Regulation 2, Correction! CPR 31—Imports SR 2-IMPORTED STEEL Due to clerical error a misprint has occurred in section 3 (a) (2) of Supple¬ mentary Regulation 2 to Ceiling Price Regulation 31. The word “Plates” should have been printed in place of the word “Blades”. Accordingly, section 3 (a) (2) of SR 2 to CPR 31 is corrected to read as follows: 2. A markup of $20.00 per ton for: Hot and Cold rolled sheets. Plates. Strip. Cold finished bars. Quality steels (special analyses). Nails. Galvanized barbed wire. (Sec. 704, 64 Stat. 816, as amended: 50 U. S. C. App. Sup. 2154) Joseph H. Freehill, Director of Price Stabilization. February 4, 1953. . . > FILE following 85 Serv 31:21 (9-24-51) 85 Serv 31:9991 OPS PUBLIC FORM NO. PUB88 UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D. C. FORM APPROVED BUDGET BUREAU NO. ? 1-^355 RETAILER’S PRICE REPORT FOR IMPORTED COMMODITIES PURSUANT TO CPR 31, SEC. 5 AS AMENDED The individual company information reported on this form is for use in connection with the De¬ fense Mobilization Program. Persons who have access to individual company information are subjectto penalties for unauthorized disclosure. This form may be reproduced without change This form is to be used by retailers only of imported commodities who have a base period markup on sales of the commodity or commodities described in Item 1. Mail the original of this application by registered letter to the Office of Price Stabilization Regional Office in your region. NAME OF FIRM ADDRESS (Street and No) (City, Zone, State) 1 - DESCRIBE THE COMMODITY OR COMMODITIES COVERED BY THIS REPORT \ 2 ■ YOUR ROLE IN PROPOSED TRANSACTION _ _ ] IMPORTER [_] PROCESSOR [_J RETAILER 3 . IF YOU ARE A PROCESSOR, what do you do to the commodity ? 4 A . BASIS ELECTED BY YOU FOR COMPUT I NG M ARKU P REPORTED (Name of country) J | CONWOD 1 TY BY COMMODI lY BASIS □ COUNTRY OF ORIGIN BASIS □ | CATEGORY BY CATEGORY BASIS □ STORE WIDE. DEPARTMENTAL OR OTHER SELLING UNIT 4B . DE SCR I BE DEPARTMENT OR OTHER SELL ING UNI T WH ICH SELLS THE COMMODI TY OR 00M40DIT1 ES COVERED BY TH I S REPORT. AND WH I CH USES THE BASIS CHOSEN IN ( 4 A) ABOVE 4 C - CALENDAR QUARTER USED IN COMPUTING MARKUP J 3RD QUARTER 1949 | | 4TH QUARTER 1949 j | 1ST QUARTER 1950 ^ 2ND QUARTER 19 50 4 D - YOUR PERCENTAGE MARKUP I certify that the information given in this report and any attachments is true and correct to the best NOTICE - A willfully false statement is a criminal offense. of my knowledge and belief. SIGNATURE OF OWNER OR AUTHORIZED AGENT TITLE DATE Serv 31:9902 ■4 • INSTRUCTIONS Item l.You need not file a separate report for each commodity. You may list and describe all commodities for which you employ the same basis in computing their markup and which you sell through the same selling unit. You may list and de¬ scribe these commodities below or on a separate sheet to be attached hereto. Should these commodities have the same markup, indicate this markup in your answer to item 4. Should these commodities have different markups, indicate the markup for each commodity opposite its description. Item 4B- Describe the department or other selling unit so that the commodities sold by that unit may be easily identified DEFINITIONS Category. This term means a group of commodities which are normally classed together in your industry for purposes of accounting or sales, e.g., toys, men’s shoes, women’s shoes. Importer. This term refers to the importer of record, that is, to the individual in whose name customs clearance is made. COMMODITIES DESCRIPTION MARK UP OPS PUBLIC FORM NO. PUBS8 (PAGE 2) (9-24-51) 85 Serv 31:9903 V FILE following 85 Serv 31:9902 OPS PUBLIC FORM NO. PUB87 (8-1/2 x 14) UNITED STATES GOVERNMENT OFFICE OF PRICE STABILIZATION WASHINGTON 25, D.C. FORM APPROVED BUDGET BUREAU NO. 94-R354 APPLICATION FOR A MARKUP BY SELLERS OF IMPORTED COMMODITIES PURSUANT TO CPR 31, SEC. 7 AS AMENDED Th« individual company information reported on this form is for use in connection with the De¬ fense Mobilization Program. Persons who have acc®ss individual company information are subjectto penalties for unauthorized di sclosure. 7 his form may be reproduced without change This application form is to be used by those sellers only of imported commodities who have no base period markup for these commodities and who are seeking a markup and ceiling price under Section 7 of CPR 31. Mail the original of this application by registered letter to the Office of Price Stabilization, Export-Import Branch Washington 25, D. C. ‘ NAME OF FIRM ADDRESS (Street and No.) (City, Zone, State) 1 - DESCRIBE THE COMMODITY OR COMMODITIES COVERED BY THIS APPLICATION 2 • YOUR ROLE IN PROPOSED TRANSACTION □ IMPORTER □ WHOLESALER □ PROCESSOR CLASS OF BUYER □ RETAILER e 4 • CHECK THE FIRST ONE OF THE FOLLOWING TYPES OF SALES ON WHICH YOU ARE ABLE TO COMPUTE A BASE PERIOD MARKUP □ BASE PERIOD SALES OF THE COMMODITY YOU ARE PRICING TO BUYERS OF THE CLASS MOST CLOSELY RELATED TO THE CLASS FOR WHICH YOU ARE PRICING DE SCR I BE THIS "MOST CLOSELY RELATED CLASS” OF BUYER. BASE PERIOD SALES OF A COMPARISON COMMODITY TO BUYERS OF THE CLASS FOR WHICH YOU ARE PRICING. DESCR I BE THE "COMPARISON COMMODITY" . □ BASE PERIOD SALES OF A COMPARI SON COMMODITY TO BUYERS OF THE CLASS MOST CLOSELY RELATED TO THE CLASS FOR WHICH YOU ARE PRICING. DESCRIBE THE "COMPARISON COMMODITY" AND THE "MOST CLOSELY RELATED CLASS" OF BUYER. 5A - IF YOU ARE A RETAILER, STATE BASIS ELECTED BY YOU FOR COMPUTI NG M ARK UP REPORTED (Name of country) □ □ COMMODITY BY COMMODITY BAS I S CATEGORY BY CATEGORY BASIS □ □ COUNTRY OF ORIGIN BAS IS. STOREWIDE. DEPARTMENTAL OR OTHER SELLING UNIT 5B - CALENDAR QUARTER USED IN COMPUTING MARKUP [H 3RD QUARTER 1 949 Q 4TH QUARTER 1 949 □ 1 ST QUARTER 1 9 50 □ 2ND QUARTER I 950 5c • DESCRI BE DEPARTMENT OR OTHER SELLING UNIT WHICH SELLS THE COMMODITY OR CONWODITIES COVERED BY THIS APPLICATION. AND WHICH USES THE BASIS CHOSEN IN ITEM 5A ABOVE. 6 - If you are unable to check any of the types of sales in item 4 above, then fill in this section. 6A . STATE REASONS WHY YOU ARE UNABLE TO COMPUTE A MARKUP UNDER CPR 31 . 6 B - GIVE A REASONABLE MARKUP AND CEILING PR ICE. IF ANY ARE CURRENTLY PREVAILING IN THE TRADE. STATE HOW YOU DETERMINED THIS MARKUP AND CEILING PRICE TO BE THE ONES CURRENTLY PREVAILING. 85 Serv 31:9904 7 • STATE YOUR LANDED COSTS BROKEN DOWN INTO THE ELEMENTS THEREOF OR YOUR’ COST OF ACQUISITION * • IF YOU ARE A PROCESSOR, what do you do to the COMMODITY? YOUR ACTUAL COST OF PROCESSING 9 YOUR PROPOSED MARKUP JUSTIFY THIS MARKUP 10 - YOUR PROPOSED CEILING PRICE I certify that the information shown on this form is true and correct to the best of my knowledge and belief. NOTICE - A willfully false statement is a criminal offense. SIGNATURE OF OWNER OR AUTHORIZED AGENT DATE INSTRUCTIONS Item 1. You need not file a separate application for each commodity if it is possible to use one application for several commodities. You may list and describe these commodities on a separate sheet to be attached hereto. Item 5c. Describe the department or other selling unit so that the commodities sold by that unit may be easily identified. Item 9. If you are a retailer, your proposed markup will be a percentage markup. All other sellers will have a dollars and cents markup. DEFINITIONS Category. This item means a group of commodities which are normally classed together in your industry for purposes of ac¬ counting or sales, e.g., toys, men’s shoes, women’s shoes. Class of Buyer. This term refers to industrial users, proces¬ sors, wholesalers, retailers, and individual consumers. Comparison Commodity. This term means a commodity having general characteristics and uses similar to the commodity or commodities covered by this application. Of the commodities having these characteristics and uses, choose as the compar¬ ison commodity the commodity having a current unit direct cost closest to that of the commodity or commodities covered by this application. Cost of Acquisition. This term means the actual cost ofthe commodity to a buyer, as reduced by all discounts, allowances and “commissions" received. Importer. This term refers to the importer of record,that is, to the individual in whose name customs clearance is made. Landed cost. This term means the foreign invoice cost plus the cost of importation as reduced by all discounts, allow¬ ances, and “commissions" received. Most closely related class of buyer. This term means the class of buyer to which you sold, during the base period, the commodity you are pricing, or a comparison commodity, and which in terms of quantity and conditions of sale is most similar to the class of buyer for which you are pricing. OPS PUBLIC FORM NO. PUB87 (PAGE 2) (5-11-51) 85 Serv 32:1 i FILE following 85 Serv 31:7 Services Ceiling Price Regulation 34 MAY 11, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 34] CPR 34—Services Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 F. R. 738) this Ceiling Price Regulation is hereby issued. STATEMENT OF CONSIDERATIONS The inflationary pressures incident to the Korean situation and the stepped up rearmament program brought on price increases throughout the economy during the latter part of 1950, which necessitated prompt action in direct price controls. Accordingly, on January 26, 1951, the Office of Price Stabilization issued the General Ceiling Price Regula¬ tion. This regulation, with certain ex¬ ceptions, fixed the ceiling prices of all commodities and all services at the highest price charged by the seller during the base period, December 19, 1950, to January 25, 1951, inclusive. At the time of the issuance of the General Ceiling Price Regulation, it was under¬ stood that it did not adequately meet the specific needs of numerous suppliers of services and that it was to be replaced with respect to that field as soon as practicable. A new regulation, Ceiling Price Regulation No. 34 Services is issued separately covering the field of services, and, to the extent of its applicability, supersedes the General Ceiling Price Regulation in the services field. In the main, the fundamental provisions of the General Ceiling Price Regulation, in¬ cluding the base period of December 19, 1950, to January 25, 1951, for the de¬ termination of ceiling prices, have been retained in this new regulation. The considerations which support the Gen¬ eral Ceiling Price Regulation are equally applicable to this Ceiling Price Regula¬ tion No. 34. Services rendered in trade, commerce and industry, services integrated with such services as well as personal services, all vitally affect the national economy. The administrative problems involved in regulating the ceiling prices to be charged for such services are so much different from those involved in regulat¬ ing the ceiling prices for commodities, that it has been determined to issue a separate ceiling price regulation for such services. The new regulation removes from the coverage of the General Ceiling Price Regulation all services (except transportation services of contract car¬ riers and certain industrial services in connection with the jobbing shop oper¬ ations in metals and metal products and the plating of plastics or other non- metallic materials, except the repair and maintenance of automotive and farm equipment) and brings under the single Services Regulation all such services subject to price control with the excep¬ tion of defense services exempted by Supplementary Regulation 1 to the Gen¬ eral Ceiling Price Regulation, services exempted by Supplementary Regulation 15 to the General Ceiling Price Regula¬ tion, and those services which now or hereafter may be covered in other spe¬ cific price regulations. Many service functions rendered for the same general use and purpose vary with the specific task. This is particu¬ larly true in the repair trades. While certain of these trades permit a stand¬ ardization of price because of the normal pattern of the requirements of the pur¬ chaser, other types of repair trades, be¬ cause of the varying nature of the repair demands of the purchaser, do not permit a pre-determined price. The new regu¬ lation provides a method for determina¬ tion of prices based upon the highest price charged in the base period for the same service. This provision permits the supplier of a service to determine his price in accordance with his own pricing method, but limits the elements which enter into the determination of the prices to their highest base period level. Under the regulation the highest price charged by the seller during the base period for any service customarily rendered but not in fact supplied during the base period is deemed to be that price which would have been charged upon a rate or pric¬ ing method regularly used for determin¬ ing the price for such service during the base period, December 19, 1950, to Janu¬ ary 25, 1951, inclusive. Many, services are seasonal in nature or subject to seasonal variation in price. In some cases the services are not per¬ formed during the base period. In other cases a seasonal variation in price occurs and it would be manifestly unfair to restrict the supplier of the service to his base period price. A provision has been added to the new regulation which pro¬ vides for the determination of ceiling prices for seasonal services or services subject to seasonal variation in price. The provision limits the seller to the highest price charged in the last cor¬ responding season, but permits an in¬ crease based upon the rise in the cost of living from that season. The adjustment provisions of this reg¬ ulation, with limitations, permit the filing of an application for adjustment by a seller of a service or services where substantial financial hardship exists. Service establishments are in the main small business establishments without substantial reserves of capital. Labor is the most important factor of cost and either direct labor wage increases or deterioration of labor supply can create financial hardship threatening the con¬ tinuance of the establishment’s exist¬ ence. In like fashion, the regulation is tail¬ ored to meet the various problems of pricing which arise in the services field that are foreign to the commodities field. The regulation is further designed by introduction of filing provisions to per¬ mit more effective enforcement in the services field and to provide a source for price data for the development of indi¬ vidual supplementary service regulations in particular service trades. The foregoing modifications do not change in any way the fundamental economic policy which is effectuated by the General Ceiling Price Regulation. The base period of December 19, 1950, to January 25,1951, as the appropriate date for the determination of ceiling prices, is maintained throughout this regula¬ tion. Within the general framework of the General Ceiling Price Regulation, however, flexibility is achieved which adapts that framework to the individual characteristics of the services field. While the innumerable and diverse services cutting across a complex of dif¬ ferent industries and trades has ren¬ dered impracticable the establishing of, and consultation with, formal service committees during the preparation of this regulation, nevertheless, the Direc¬ tor of Price Stabilization, wherever feasible, has consulted with numerous representatives from various services fields and given consideration to their recommendations. In the judgment of the Director of Price Stabilization, the provisions of this regulation are gener¬ ally fair and equitable and are necessary to effectuate the purpose of Title IV of the Defense Production Act of 1950. So far as practicable, the Director of Price Stabilization has given considera¬ tion to the National effort to achieve maximum production in furtherance of the objectives of the Defense Production Act of 1950, including prices prevailing during the period from May 24, 1950, to June 24, 1930, and to relevant factors of general applicability. 946635 0 - 51 - 10 85 Serv 32:2 REGULATORY PROVISIONS Sec. 1. What this regulation does. 2. Services covered. 3. Prohibitions. 4. Prices previously established. 5. General pricing provisions. 6. Pricing for new services and sellers. 7. Services which cannot be priced under section 5 or 6 of this regulation. 8. Pricing of seasonal services. 9. Pricing changes. 10. Central pricing. 11. Commodities included in services. 12. Special pricing provisions. 13. Transfer of business; moving of business; chains. 14. Taxes. 15. Additional charges. 16. Customary price differentials. 17. Gales slips; receipts. 18. Records; filings of statements; posting. 19. Violation. 20. Adjustments. 21. Adjustable pricing. 22. Petitions for amendment. 23. Procedures. 24. Amendments; rupplementary regulations; orders. 25. Evasion. 23. Applicability. 27. Definitions and explanations. Authority: Sections 1 to 27 issued under Sec. 704, Pub. L. 774, 81st Cong. Interpret or apply Title IV, Pub. L. 774, 81st Cong., E. O. 10161, Sept. 9, 1950, 15 F. R. 6105, 3 C. F. R. 1950 Supp. Section 1. What this regulation does. This regulation removes most services from the coverage of the General Ceiling Price Regulation (GCPR) and brings them under this regulation. This regu¬ lation in general establishes the ceiling price of most services at the levels pre¬ vailing in the period December 19, 1950, to January 25, 1951, inclusive. Sec. 2. Services covered. This regu¬ lation covers all services except: (a) Services exempted in the GCPR, as amended; (b) Defense services exempted by Supplementary Regulation 1 to the GCPR, as amended; (c) Services exempted by Supple¬ mentary Regulation 15 to the GCPR, as amended; (d) Services covered by any specific price regulation now or hereafter issued by the OPS; (e) The following services, which re¬ main under the GCPR: (1) Transportation services of con¬ tract carriers; (2) The following industrial services (except services rendered in connection with the repair or maintenance of auto¬ motive or farm equipment) when per¬ formed on material or products owned by another: (i) All jobbing shop operations cus¬ tomarily performed in the fabrication, conversion, repair or maintenance of metals or metal products. These opera¬ tions include abrading, adjusting, assem¬ bling, cutting, forming, grinding, ma¬ chining, shaping and welding or other¬ wise joining. (ii) All jobbing shop operations cus¬ tomarily performed in the treatment, coating, or finishing of metals or metal products. These operations include an¬ nealing, anodizing, bonderizing, blasting, carbonizing, carburizing, case-harden¬ ing, cleaning, coronizing, deoxidizing, enameling, galvanizing, heat treating, heresiting, japannizing, laquering, lead coating, metallizing, nitriding, normaliz¬ ing, painting, pickling, phosphate coat¬ ing, plating, polishing, sheradizing, shot peening, tempering and tinning. (iii) Plating on plastics and other non- metallic materials. Sec. 3. Prohibitions, (a) On and after May 16, 1951, regardless of any contract or other obligation: (1) You may not sell any service cov¬ ered by this regulation at a price higher than your ceiling price. (2) No person in the course of trade or business may buy any service covered by this regulation at a price higher than the ceiling price. Of course, you may charge lower prices than your ceiling prices at any time. (b) Once you have reported your ceil¬ ing price or a proposed ceiling price for a service as required by this regulation, you may not thereafter redetermine it. A purely arithmetical error may, how¬ ever, be corrected, but the correction must be reported to the Director of Price Stabilization, Washington 25, D. C. Sec. 4. Prices previously established. fa) This regulation supersedes the GCPR insofar as the GCPR dealt with services now covered by this regulation. (b) Since this regulation keeps cer¬ tain of the basic pricing provisions of the GCPR, many of your ceiling prices under this regulation will be the same as those you properly established under the GCPR. (c) In addition all prices established under section 6 or section 7 of the GCPR remain in effect under this regulation. Sec. 5. General pricing provisions. (a) In determining your ceiling price (which you must report in the manner provided by section 18 of this regulation), use the first of the following provisions which applies to you. Your ceiling price shall be: (1) The highest price at which you supplied the same service during the “base period” (December 19, 1950, to January 25, 1951, inclusive) to a pur¬ chaser of the same class. (Be sure to read the definition of “purchaser of the same class” in section 27 (a) (11) of this regulation.) If, however, in the base period you did not have a flat price for the service but did have a rate or a pric¬ ing method to determine your price, you may continue to use your highest base period rate or pricing method to deter¬ mine your ceiling price for the same service, to a purchaser of the same class. (2) If you did not actually deliver the service in the base period, then the high¬ est price at which you offered in writ¬ ing to supply the same service for delivery in the base period to a pur¬ chaser of the same class. If, however, in the base period you did not offer in writing to supply that service to that class of purchaser upon the basis of a flat price but did have a rate or pricing method upon the basis of which you could have supplied that service to that class of purchaser, then the price result¬ ing from the application of your highest base period rate or pricing method which would, by your usual trade prac¬ tice, have been used by you had you sup¬ plied the service in the base period. (3) The ceiling price of your closest competitor for the same service to a purchaser of the same class, if you did not actually supply it or offer it for supply in the base period to any pur¬ chaser. However, you may not take your closest competitor’s ceiling price if such price is based on his offering price. The term “ceiling price” as used in this paragraph and in sections 6 and 7 of this regulation also includes a ceiling rate or pricing method. If you are a new seller first making sales after the effective date of this regulation, or a seller of a new service first sold by you after the effective date of this regulation, you will comply with section 6 of this regulation. (b) In the use of a rate or a pricing method you may not charge more for each factor of the rate or pricing method than the highest price you charged for such factor in the base period. For ex¬ ample, you operate an automobile repair shop and you do not have a fixed flat price for body repair work but make a labor charge of $3 per hour plus the price of any parts supplied. You may not now charge more than $3 per hour for your labor charge even though you are paying your mechanics more than you paid them in the base period. Furthermore, you may not now charge more than the high¬ est price you charged for the parts in the base period unless a commodity regu¬ lation establishes a new ceiling price for such parts in which case you may charge for such parts the ceiling price so es¬ tablished. Sec. 6. Pricing for new services and sellers, (a) If you are a new seller or are selling a new service which cannot be priced under section 5 of this regula¬ tion, your selling price is the same as the ceiling price of your closest compet¬ itor for the same service to a purchaser of the same class. (b) Within 10 days after determining the ceiling pric under this section you must report the price in writing to the appropriate OPS district office explain¬ ing how the price was computed. You must also comply with the applicable provisions of section 1C of this regulation. Sec. 7. Services which cannot be priced under section 5 or 6 of this regulation. (a) If you cannot determine a ceiling price under section 5 or section 6 of this regulation, you must file an application with the Director of Price Stabilization, Washington 25, D. C., for approval of a ceiling price in line with the level of ceiling prices otherwise established by this regulation, and in the case of a com¬ modity rental or a manufacturing or processing service, a ceiling price con¬ sistent with the level of ceiling prices established for the sale of the commodity by the applicable ceiling price regulation. The application shall contain a descrip¬ tion of the service, anticipated direct labor and materal costs, and the pro¬ posed ceiling price. It shall also con¬ tain a full explanation of the reasons why you cannot price this service under section 5 or 6 of this regulation. If you supplied any other service in the base period, submit, in addition, a descrip¬ tion of the most comparable service showing your present direct labor and material costs for it and your present ceiling price. (b) You may not sell the service for which a ceiling price is requested under this section until that price has been approved by OPS, but the proposed price shall be considered approved 20 days after mailing the application (or all ad- 85 Serv 32:3 ditional information which may have been requested), unless, within that time, CPS notifies you that your pro¬ posed price has been disapproved. You must also furnish any additional infor¬ mation which OPS may require and comply with the provisions of section 18 of this regulation. Sec. 8. Pricing of seasonal services— (a) Services supplied in the base period but subject to seasonal variations in price. If you have had a regularly estab¬ lished seasonal variation in price and delivered the service in the base period, your ceiling price for your other seasonal periods shall reflect your customary dol¬ lar differential between that season and the base period. (b) Seasonal services not supplied in the base period. If the service was not supplied in the base period either by you, or by a competitor in the same general trading area serving the same kind of purchaser, and if you supplied the service regularly during one or more seasons of the period January 26, 1950, to December 18,1950, inclusive, your ceiling price shall be the price you charged in the last season prior to the base period: Provided, nevertheless, That if you are one of the sellers referred to in paragraph (c) of this section you may add to that price the increase permitted in such para¬ graph (c). If you customarily maintain other seasonal variations in price you shall reflect your customary dollar dif¬ ferential in price between those seasons and the last season in which the service was supplied. (c) You may under paragraph (b) of this section use the following table to compute your percentage increase if you are a seller who on each day of the last season prior to the base period employed not more than seven individuals. If, however, during the last season prior to the base period, you employed eight or more individuals in any one day and you can show in your report to the Di¬ rector of Price Stabilization that your direct costs have now increased above your costs in the last season prior to the base period, you may under paragraph (b) of this section add no more than these direct costs to that price which you charged in the last season prior to the base period unless these direct costs exceed the table percentage applicable to you, in which case you will then use that table percentage. (1) The table percentage applicable to you under this paragraph and paragraph (b) of this section shall be as follows for the applicable season: 8 percent Jan. 26, 1950, through April 30, 1950. 7 percent May 1, 1950, through June 30, 1950. 6 percent July 1, 1950, through July 31, 1950. 5 percent Aug. 1, 1950, through Aug. 31, 1950. 4 percent Sept. 1, 1950, through Sept. 30, 1950. 3 percent Oct. 1, 1950, through Nov. 30, 1950. 2 percent Dec. 1, 1950, through Dec. 18, 1950. In selecting the appropriate percentage increase apply the percentage for the date in which the highest price for the season was first announced by you in writing or, if there was no such an¬ nouncement, the first date on which the service was sold by you at the highest price in the season. (d) This section applies only if the season during which the variation in price was in effect regularly consisted of at least 14 consecutive days. (e) Reports. Within 10 days after establishing or determining your ceiling price, or any change therein, under this section, you must report the price in writing to the Director of Price Stabili¬ zation, Washington 25, D. C., explain¬ ing how the price was computed. You must also comply with the applicable provisions of section 18 of this regula¬ tion. Sec. 9. Pricing changes. OPS may at any time disapprove or revise ceiling prices proposed or established under this regulation or under section 7 of GCPR so as to bring them into line with the level of ceiling prices otherwise estab¬ lished by this regulation. You may not redetermine your ceiling price after it has been determined under this regu¬ lation unless it is changed by OPS, in which case the changed price shall be your ceiling price. Sec. 10. Central pricing. OPS may when it deems it consistent with the pur¬ poses of this regulation establish uni¬ form prices for sellers owning or operat¬ ing more than one service establishment and may for this purpose require sellers to furnish necessary information. Sec. 11. Commodities included in serv¬ ices. Your ceiling price for a service under this regulation includes any com¬ modity furnished with the service. If your ceiling price includes a separately stated charge for the commodity, your ceiling price for the service shall be in¬ creased or decreased, as the case may be, by the difference between your sepa¬ rately stated charge for the commodity under this regulation and the ceiling price fixed by the applicable commodity regulation. Sec. 12. Special pricing provisions— (a) Application of general pricing in¬ crease to long-term contracts, etc. If in the base period you had in effect an increase in your prices for a service to your classes of purchasers generally, and you actually charged the increased price to the classes of purchasers whom you supplied in the base period, but you did not supply the service at the increased price in the base period to a particular class of purchaser because either: (1) You did not supply the service to that class of purchaser in the base period after the price increase, or (2) You supplied the service to that class of purchaser in the base period after the price increase at a lower price because you were bound to do so under a contract made before the price in¬ crease, then your ceiling price to that particular class of purchaser shall be: (i) Your increased offering price to that class of purchaser for supply during the base period, or (ii) If you had no such increased of¬ fering price, then the highest price at which you supplied the service to a pur¬ chaser of a different class during the base period adjusted to reflect the cus¬ tomary differential in price between the two classes of purchasers. If, however, in the base period you announced in writing an increase in your prices for a service to your classes of purchasers generally, but you did not deliver the service at the increased price to any of the purchasers whom you sup¬ plied in the base period because you were bound under contracts made before the announcement in writing of that price increase, and you did enter into new con¬ tracts for future delivery of the service at the increased price prior to December 19, 1950, then at the expiration of each old contract you may institute the an¬ nounced price increase, adjusted to re¬ flect the customary differential in prices among your classes of purchasers. (b) Percentage commissions on com¬ modity sales or purchases. If you are a commission seller, buyer, broker, or auctioneer, and in the base period you used a percentage rate to determine your commission in connection with the sale or purchase of a commodity, you may now apply your highest base period per¬ centage rate to the current authorized price of a commodity under the appli¬ cable commodity ceiling price regulation, or to your sale or purchase price of the commodity if it is lower, to determine your commission for the purchase or sale of the same commodity to a purchaser of the same class. (c) Individual negotiated prices. If you customarily made a practice of charging different purchasers different prices without regard to standards, such as quantity purchased and nature of business (wholesaler, retailer, etc.) each such customer is a separate class of pur¬ chaser. (d) New purchasers. Your price to a new purchaser is your established ceiling price to the class in which the new pur¬ chaser falls. However, if you followed the practice of maintaining individually negotiated prices, the ceiling price to a new purchaser is the arithmetic average of your base period ceiling prices to pur¬ chasers of the same class for the same service. But if within one month prior or one month subsequent to the accept¬ ance of a new purchaser you discontinue supplying an old purchaser to whom you sold during the base period at a price below your average price to purchasers of the same class, your ceiling price to the new purchaser shall be the same as the ceiling price you charged the pur¬ chaser you discontinued. (e) Refusing to supply lower priced services. (1) A seller may discontinue selling his services. If, however, he dis¬ continues a service that he offered in the base period or since, and sells or offers to sell in its place a higher priced service which will achieve the same general pur¬ poses as the service he discontinues, he is evading the Defense Production Act of 1950, and is violating this regulation, un¬ less it appears that one or more of the following conditions exists: (i) That specialized equipment or supplies requisite to a continuance of the particular service are not available; or (ii) That the continuance of the par¬ ticular service would be in violation of or would be rendered impracticable by a governmental order or regulation, or that it would be contrary to govern- mentally established standards or poli¬ cies; or (iii) That discontinuance of the par¬ ticular service will enable the seller to maintain other services more neces- 85 Serv 32:4 sary to the community directly con¬ cerned; or (iv) That other suppliers in the com¬ munity are able and willing to supply the requested service or a similar service in requisite amount and at prices not ex¬ ceeding the ceiling price of the particu- lsii* seller (2) A seller refusing to supply a serv¬ ice must, unless otherwise permitted to do so by a general permissive order, cer¬ tify by registered mail, for which a re¬ turn receipt has been requested, to the Director of Price Stabilization, Wash¬ ington 25, D. C., the existence of one or more of the conditions stated in this paragraph. Unless sufficient facts are given to support the certification, the re¬ quest will be denied, without prejudice to an opportunity to the seller to furnish additional evidence. (3) Effective date on which a service may be discontinued under this para¬ graph : Unless the Director of Price Sta¬ bilization or his authorized representa¬ tive shall, by notice mailed to the seller within thirty days from the date of the receipt of the certified statement, disap¬ prove the request, the seller may dis¬ continue the service. (4) Definition: As used in this para¬ graph, the term “service” means one of the types, forms, grades, or quantities offered for sale in the base period, or since, the description of which is re¬ quired in your statement under section 18 of this regulation. (f) Cost plus contracts. (1) If you customarily supplied service to a class of purchaser by the use of a cost plus con¬ tract, you may continue to use such a contract, limited to your highest base period fee or percentage, but in figuring your costs you must limit each element of cost to the highest rate or charge you made to the same class of purchaser in the base period. (2) Within 10 days after determining the ceiling price under this section you must report the price in writing to the Director of Price Stabilization, Washing¬ ton 25, D. C., explaining how the price was computed and stating your base pe¬ riod charges and method of computation for the supplying of the same service to a purchaser of the same class. (g) Flat rate manuals or catalogues. If during the base period you used a flat rate manual to determine your price, you must use the same manual now, and you may not increase the hourly rate you charged in the base period. If you used a catalogue to determine your prices for parts in the base period you may continue to do so now. However, if a specific ceiling price is set by OPS for any item in the catalogue, you may not charge more than such specific ceil¬ ing price. You may not use a new edi¬ tion of such flat rate manual or cat¬ alogue unless its use has been approved by the Director of Price Stabilization, Washington 25, D. C. Sec. 13. Transfer of business; moving of business; chains—(a) Transfer. If you acquire a previously established business after May 16, 1951, and you carry on such business in an establish¬ ment separate from an establishment previously owned or operated by you, your ceiling prices shall be the same as those to which your transferor would have been subject if no such transfer had taken place, and your obligation to keep records sufficient to verify such prices shall be the same. You must further prepare and preserve (if your transferor has not already done so) and keep up to date the statement required under section 18 of this regulation. Your transferor shall preserve and turn over to you all records of transactions prior to the transfer which are necessary to enable you to comply with the records provisions of this regulation. (b) Moving. If you sell services at retail and move the business out of your trading area after May 16, 1951, you must apply to OPS for establishment of your ceiling prices for that unit under section 7 of this regulation except that if you close a selling unit and open an¬ other one in the same trading area, your ceiling prices for the new unit shall be the same as those of the unit you closed. Sec. 14. Taxes. If a tax is imposed on a service covered by this regulation and the tax law does not forbid you to pass the tax on to your customers, you may add the tax to your ceiling price in ac¬ cordance with the following provisions: If the tax becomes effective after Jan¬ uary 25, 1951, you may add the tax to your ceiling price if you separately state it. If the tax was in effect in the base period and you were not then supplying the service, you may add the tax to your ceiling price as established under this regulation if such price does not already reflect the tax, if you separately state it. If the tax was in effect in the base period and you were then supplying the service and passing on the tax, you may con¬ tinue to do so; if you separately stated the tax then, you must do so now. If in the base period you did not pass the tax on to your customers, you may not do so now. (“Tax'’ as used in this section also includes a tax increase.) Sec. 15. Additional charges. You may not make a higher charge for expediting, packaging, or other incidents of a service than you made in the base period to a purchaser of the same class, nor may you now make any charge for any inci¬ dent of a service if it was not your practice to do so in the base period, unless you are authorized to do so by the Director of Price Stabilization, Washington 25, D. C. You may not re¬ quire a purchaser to pay a larger propor¬ tion of transportation costs incurred in the supply of any service than you re¬ quired a purchaser of the same class to pay during the base period for the same service. Unless authorized by the Di¬ rector of Price Stabilization, Washington 25, D. C., you may not require a deposit for any reason or make an extra charge for insurance, if you did not do so in the base period, nor may you now increase any such deposit or insurance charge made in the base period. Sec. 16. Customary price differentials. Your ceiling .prices, when determined, shall reflect your customary price differ¬ entials, including discounts, allowances, premiums and extras, based upon dif¬ ferences in classes or location of pur¬ chasers, or in terms and conditions of sale or delivery. Sec. 17. Sales slips; receipts. If you have customarily given a purchaser a sales slip or receipt, you must continue to do so. Upon request by a pur¬ chaser, you must regardless of your pre¬ vious custom, give the purchaser a sales slip or receipt. Such sales slip or receipt must show your name and address, the date, the description and quantity of each service sold, the price charged for each such service, and the price charged for any parts or commodities furnished with the service. Sec. 18. Records; filings of statements; posting. You must comply with the fol¬ lowing provisions for keeping price rec¬ ords and for filing statements of your ceiling prices: (a) Records. Preserve for examina¬ tion by OPS all records regarding your prices, rates, or pricing methods for serv¬ ices supplied or offered for supply during the base period (or such other period as is specified as your base period) and thereafter. (b) Filings of statements. (1) Pre¬ pare and keep for examination by any person during ordinary business hours, a statement of your ceiling prices, rates, or pricing methods for purchasers of each class together with an adequate description of each such service. (1) If you have in any case taken the ceiling price of your closest compet¬ itor for any service as your ceiling price, indicate on the statement in every such case the service, the ceiling price, and your closest competitor’s name and ad¬ dress. (ii) If your ceiling prices are based upon a flat rate manual or similar pric¬ ing manual or parts catalogue or list, you may (instead of appending it to the statement) clearly identify on the state¬ ment such manual, parts catalogue, or list by name, edition number, and date, indicating the instances in which it was not your practice in the base period to follow it. (2) File a duplicate of your statement with the appropriate OPS district office. You may request, if you wish, that the part of your statement insofar as it ap¬ plies to non-retail services which you sell be treated as confidential and not subject to public disclosure. Such part of your statement as shall be so treated will then be withheld from public in¬ spection unless the withholding of the information it contains would be con¬ trary to the purposes of this regulation. You may also withhold from public in¬ spection such part of your statement, insofar as it applies to non-retail serv¬ ices which you sell. (3) You must prepare and file such duplicate statement within 30 days of the date that your ceiling price for a service is first established by this regu¬ lation. If you have previously prepared and preserved a statement of your ceil¬ ing prices under the GCPR and its amendments, and your ceiling prices have not changed under this regulation, you must prepare and file such duplicate copy of such statement under this regulation. (c) Supplements. You must also pre¬ pare and keep available appropriate sup¬ plements of your statements, and you must file a duplicate copy of each such supplement with the appropriate OPS district office, within 10 days after you have delivered any new service or after any change in your selling price is au¬ thorized by GPS. 85 Serv 32:5 (d) S'gnature. The^e statements and all supplements thereto must b? signed by you or your authorized agent. (e) Exception. If you can show that the requirements of this section subject you to unusual hardship, you may apply to the Director of Price Stabilization, Washington 25, D. C., for written au¬ thorization to depart from these require¬ ments. Such authorization will be given only if it will not be inconsistent with the purposes of this regulation. (f) Posting. (1) OPS may require you to post your ceiling prices for any service which you sell at retail whenever it is deemed necessary to the effective enforcement of this regulation. (2) If, however, you operate a service establishment making sales at retail, you must, not later than 30 days after the date that your ceiling price for a service is first established by this regulation, post your ceiling prices in a prominent or clearly visible position in your estab¬ lishment. Sec. 19. Violation—(a) Civil and crim¬ inal action. If you violate any provisions of this regulation you are subject to the criminal penalties, civil enforcement actions, and suits for treble damages provided by the Defense Production Act of 1950. (b) Record-keeping and filing viola¬ tions; failure to establish ceiling price. (1) If you fail to keep the records or statements as required by section 18 of this regulation, or if such records or statements or supplements are incorrect or incomplete, or if you fail to apply to OPS for the establishment of a ceiling price under section 7 of this regulation, if you are required to do so, OPS may issue an order establishing a ceiling price for each service you sell in line with prices established by this regula¬ tion. Such order may establish the ceiling price as of the date of the first sale of the service under this regulation. Such order may also require you to give sales slips or receipts to your cus¬ tomers as specified in the order, to re¬ tain copies thereof in your files, and to prepare and keep such records as may be specified in the order. These re¬ quirements will not, however, relieve you of your obligation to comply with the requirements of sections 18 and 7 of this regulation, or of the various penalties for failure to do so. (2) The term “ceiling price” as used in this paragraph and in section 18 also includes a ceiling rate or pricing method. Sec. 20. Adjustments—(a) General adjustments. OPS may adjust any ceil¬ ing price established under this regula¬ tion upon a demonstration of substan¬ tial financial hardship threatening your ability to continue to supply a service, subject to the following limitations: (1) No adjustment will increase your ceiling price above the levels necessary to permit you to continue the sale of your services; (2) No adjustment will be made if it will create or tend to create a need for increases in the prices of other sellers in your locality or elsewhere. In judging whether a ceiling price sub¬ jects you to substantial financial hard¬ ship, OPS will take into account such pertinent factors as the nature of your business, its earnings, and the earnings of your trade as a whole during a repre¬ sentative period. A price increase may be denied in whole or in part, however, if your hardship is attributable to such causes as a decline in sales volume be¬ cause of reduced demand, general man¬ power shortage, shortage of essential supplies, or other difficulties apart from your ceiling price. Even though a par¬ ticular service or type of service is not profitable, an adjustment may be denied in whole or in part if in the judgment of OPS, such action is justified in view of the profitability of your business as a whole. (b) Adjustment by buyer-seller agree¬ ment. In order to permit the continu¬ ance of a limited supply of an essential non-retail service, you may, if the buyer agrees to absorb a price increase above your ceiling price for that service, apply to the Director of Price Stabilization, Washington 25, D. C., for permission to increase the price of that service to him by an amount not to exceed direct labor and material cost increases incurred by you since your ceiling price for that serv¬ ice was established. Twenty days after filing under this paragraph for a price increase or supplying such additional in¬ formation as OPS may request, you may charge your increased price unless you are advised by OPS that your application has been denied. The Director of Price Stabilization or any official of OPS hav¬ ing authority to act may at any time deny the application for the price increase in any case where it appears to be incon¬ sistent with the purposes of the Defense Production Act of 1950. Sec. 21. Adjustable pricing. Any per¬ son may agree to sell at a price which can be increased up to the ceiling price in effect at the time of delivery; but no person may, unless authorized by OPS, deliver or agree to deliver at prices to be adjusted upward in accordance with ac¬ tion taken by OPS after delivery. Such authorization may be given when a re¬ quest for a change in the applicable ceil¬ ing price is pending, but only if the authorization is necessary to promote distribution or production and if it will not interfere with the purposes of the Defense Production Act of 1950. The authorization may be given by the Di¬ rector of Price Stabilization or by any official of OPS having authority to act upon the pending request for a change in price or to give the authorization. The authorization will be given by order, ex¬ cept that it may be given by letter or telegram when the contemplated revision will be the granting of an individual ap¬ plication for adjustment. Sec. 22. Petitions for amendment. If you seek a change in any provision of this regulation affecting sellers of a serv¬ ice generally, you may file a petition for amendment. Sec. 23. Procedures. Petitions for amendment and applications for adjust¬ ment shall be filed in accordance with Price Procedural Regulation No. 1 except that such petitions and applications shall be filed with the Director of Price Sta¬ bilization, Washington 25, D. C. Sec. 24. Amendments; supplementary regulations; orders. This regulation may be changed or supplemented at any time ly amendments, supplementary regulations, orders, or other appropriate action. Sec. 25. Evasion, (a) This regulation shall not be evaded directly or indirectly. (b) Any act or practice which results directly or indirectly in obtaining a higher price than is permitted by this regulation is a violation of this regula¬ tion. Such practices include, but are not limited to, devices making use of commissions, cross-sales, transportation arrangements, premiums, discounts or any other price differential, special privi¬ leges, tie-in agreements or combination sales which require the purchaser of a service covered by this regulation to buy or agree to buy any other commodity or service as a condition of receiving the desired service, or trade understandings; deterioration of services; or the practices not justified under section 12 (e) of this regulation. Sec. 26. Applicability. This regula¬ tion applies to services supplied in the 48 States of the United States and the District of Columbia. Sec. 27. Definitions and explanations. (a) When used in this regulation: (1) “Appropriate OPS district office” means the district office of the Office of Price Stabilization for the district where your place of business is located and from which your sales are made. (2) “Base period” means the period as of which your ceiling prices are fixed under this regulation. (3) “Closest competitor” means that seller selling the same service under sub¬ stantially the same conditions who is in close competition with you and is located nearest to you. (4) “Commodity.” This term in¬ cludes commodities, materials, articles, products, supplies, components, proc¬ esses and contracts to buy, sell or de¬ liver any of the foregoing. (5^ “GCPR” means the General Ceil¬ ing Price Regulation. (6) “Non-retail sale” means a sale to an industrial, commercial, or govern¬ mental user. (7) “Offered” (as that word is used in connection with price) means the price quoted in your base period price list, or, if you had no price list in the base period, the price which you regu¬ larly quoted in any other manner, or the price determined by your base period rate or pricing method. But “offered” (price) does not include a price intended to withhold a service from the market, or a price you offered as a bargaining price if you usually sold at a price lower than your asking price. (8) “OPS” means the Office of Price Stabilization and, for the purposes of authorizing, establishing, adjusting, re¬ vising or disapproving ceiling prices means the Director of Price Stabiliza¬ tion or any official to whom he by order shall delegate the authority therefor. (9) “Person” includes an individual, corporation, partnership, association, or any other organized group of persons, or the legal successor or representative of any of the foregoing, and the United States and any other government and the political subdivisions and agencies of any of the foregoing. (10) “Pricing method” is a formula by which you determined a price for a service in the base period which in- 85 Serv 32:6 eluded a rate, and an item for labor, materials, and mark-up for overhead and profit, or any of such items, whether or not the formula v/as disclosed to the purchaser. Unless the formula included a rate, the figure which resulted from the application of the formula was a flat price (except where the supplying of a service was on a cost-sharing basis). See definition of “rate” in subparagraph (12) of this paragraph. (11) “Purchaser of the same class’* means a purchaser belonging to the same price class, that is, to a group of pur¬ chasers to whom it was your established practice in the base period to supply or offer to supply the same service at a particular price. If in the base period you customarily supplied or offered to supply the same service to any purchaser at a price different from the price at which you supplied or offered to supply the same service to other purchasers, that purchaser is in a purchaser price class by himself. (12) “Rate” is a means of determin¬ ing a price by multiplying the time in¬ volved in supplying a service by a fixed charge per unit of time, or by multiply¬ ing the price of the commodity involved by a fixed percentage. (13) - “Records” includes but is not limited to, books of account, sales lists, sales slips, orders, vouchers, contracts, receipts, invoices, bills of lading, and any other papers and documents relating to your prices. (14) “Rental” means any leasing of a commodity except where the lease is a substitute for a conditional sales con¬ tract, chattel mortgage, or other security device in connection with an installment sale, or except where the lease contains a provision giving the lessee an option to buy the leased commodity at a stipulated price from which all or a portion of the payments made as rent are to be de¬ ducted. (15) “Season” means any division of the year into periods of at least 14 con¬ secutive days for pricing purposes, such division being based upon regular and recurrent differences in demand for or supply of the service. (16) “Sell” or “supply” includes sell, rent, supply, dispose, barter, exchange, transfer, deliver, and contracts and of¬ fers to do any of the foregoing. The term “sale”, “supply”, “selling”, “sup¬ plying”, “sold”, “supplied”, “seller”, “supplier”, “buy”, “purchase”, shall be construed accordingly. (17) “Service” or “services” means any act or acts performed or rendered, otherwise than as an employee, for a fee, charge or other consideration. The term includes any privilege sold or granted, or any forbearance to act, for a fee, charge or other consideration. The term also includes the rental of any commodity or service if the rental charge is not covered by another ceiling price regulation and has not been exempted from price control. (18) “You” means a person and refers to any seller or supplier subject to this regulation. If you supply services through more than one place of business, each such place of business shall, for the purposes of this regulation, be considered a separate seller or supplier. Effective date. This regulation shall become effective May 16, 1951. Note: The record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in ac¬ cordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director, Price Stabilization. May 11, 1951. U. S. GOVERNMENT PRINTING OFFICE ; O—1951 FILE following 85 Serv 32:6 (8-21-51) 85 Serv 32:7 Miscellaneous Amendments Ceiling Price Regulation 34 Amendment 1 AUGUST 20, 1951 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 34, Arndt. 1] CPR 34—Services MISCELLANEOUS AMENDMENTS Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161 (15 F. R. 6105), and Eco¬ nomic Stabilization Agency General • Order No. 2 (16 F. R. 738), this Amend¬ ment 1 to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS This Amendment 1 to Ceiling Price Regulation 34 clarifies and amplifies that ceiling price regulation. Sections 12 (d), 13 (a), 13 (b), 13 (c), 18, 18 (b) (1) and 18 (g) (newl have been the subject of miscellaneous clarifying amendments. Section 5 (a) (2) is amended to provide that an offer in writing to supply a serv¬ ice in the base period may be evidenced by a written invoice made prior to the base period but after December 31, 1949. An addition to section 20 (a) has been made prescribing the in¬ formation required, by way of a form or otherwise, from a supplier who may seek a general adjustment of his ceiling price. Section 20 (b) is implemented by the introduction of a new adjustment paragraph (c), which permits a pur¬ chaser of non-retail services who agrees to absorb the increased price charged to him by his sellers, who are threatening to discontinue the supplying of those services and who are too numerous to make practicable any recourse to an ad¬ justment of that price by a buyer-seller agreement under paragraph (b), to make an application to the Director of Price Stabilization to pay his sellers as much as but no more than the price he would be required to pay other supplying sources for such services. Section 26 is amended, so that the pro¬ visions of Ceiling Price Regulation 34 are made applicable to the territories and possessions as of the effective date of this amendment. The territories and possessions were excluded from that regulation, as issued, because the supple¬ mentary regulations to be issued under such Ceiling Price Regulation 34 were to be tailored to conditions existing in the economy of the continental United States and, therefore, not necessarily suitable to the needs of the territories and possessions. It has now been deter- | \ mined that there will be two series of f) supplementary regulations issued under such Ceiling Price Regulation 34, one applicable to the continental United States, and the other to the territories and possessions. The latter will be labeled “Territorial Supplementary Reg¬ ulations”. The filing date in section 18 for the listed territories and possessions will, of course, be computed only from the effective date of this amendment. The technical nature and routine character of the provisions of this amendment made it unnecessary to consult formally with industry repre¬ sentatives, although wherever feasible various representatives from service fields were informally consulted and con¬ sideration was given to their recom¬ mendations. In the judgment of the Director of Price Stabilization the pro¬ visions of this regulation are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Ceiling Price Regulation 34 is amended in the following respects: 1. Subparagraph (2) of paragraph (a) of section 5 is amended by adding after the first sentence thereof the following: “Such an offer in writing must be one made in the base period or be evidenced by an invoice made prior thereto but after December 31, 1949.” 2. The second sentence of paragraph (d) of section 12 is amended by striking “class” and inserting in the place there¬ of “category”, and as amended to read as follows: “However, if you followed the practice of maintaining individually negotiated prices, the ceiling price to a new purchaser is the arithmetic average of your base period ceiling prices to pur¬ chasers of the same category for the same service.” 3. Paragraph (a) of section 13 is amended by striking therefrom “May 16, 1951” and inserting in the place thereof “January 25, 1951”. 4. Paragraph (b) of section 13 is amended to read as follows: (b) Moving. If you sell services at re¬ tail and move the business out of your trading area after January 25, 1951, you must apply to OPS for establishment of your ceiling prices under section 7 of this regulation. If you move the business in the same trading area you must keep the same ceiling prices. 5. A new paragraph (c) is added to section 13 to read as follows: (c) Chains. If you operate one or more selling units and you open a new unit after January 25, 1951, you must apply to OPS for establishment of your ceiling prices for that unit under sec¬ tion 7 of this regulation, except that if you close a selling unit and open another one in the same trading area, your ceil¬ ing prices for the new unit shall be the same as those of the unit you closed. 6. The title of section 18 is amended by striking the period after “posting” in line 2 and inserting in the place thereof a semicolon followed by “reports”, and as amended to read as follows: Sec. 18. Records; filings of statements; posting; reports. 7. Subparagraph (1) of paragraph (f) of section 18 is amended by striking the phrase “at retail” in line 3, and as amended to read as follows: (f) Posting. (1) OPS may require you to post your ceiling prices for any service which you sell whenever it is deemed necessary to the effective en¬ forcement of this regulation. 8. A new paragraph (g) is added to section 18 to read as follows: (g) Reports. The Director of Price Stabilization may from time to time re¬ quire reports and information subject to the approval of the Bureau of the Budget under the Federal Reports Act of 1942. Such reports must be filed with the Office of Price Stabilization, Washington 25, D. C., or with the appropriate OPS dis¬ trict office if you are instructed to do so, at such time, in such form and in accord¬ ance with such instructions as shall be required or approved. 9. Paragraph (a) of section 20 is amended by adding at the end thereof the following: You may apply to the Director of Price Stabilization, Washington 25, D. C., for an adjustment under this paragraph pursuant to the form listed below which is applicable to the services you supply: (i) If you are a seller of automotive, farm implement, appliance or other repair services priced by a customers' hourly rate, you must complete and file, in duplicate, with the Director, OPS Public Form No. 42. (ii) If you are a seller of any services other than those provided for in sub¬ division (i) above, you must complete and file, in duplicate, with the Director, OPS Public Form No. 43 and such other data as may be required thereby. (iii) Should OPS Public Forms Nos. 42 or 43 be considered by OPS to be in¬ appropriate for a particular applicant, OPS may require, as a condition for applying for an adjustment hereunder, that the applicant furnish to the Direc¬ tor the information OPS may prescribe. 10. A new paragraph (c) is added to section 20 to read as follows: (c) Application bp purchaser who buys services from numerous sellers. If a purchaser buys non-retail services from sellers who are too numerous to make recourse to paragraph (b) of this section / 85 Serv 32:8 practicable and who are threatening to discontinue supplying him with such services, the purchaser may, if he agrees to absorb the price increase above the ceiling, apply to the Director of Price Stabilization, Washington 25, D. C., for permission to pay to his sellers for the supplying of such services as much as but no more than he would be required to pay other suppliers therefor. Such letter should show the nature and extent of the sellers’ cost increases, and, where prac¬ ticable the names and addresses of the sellers and the ceiling prices of each. A price increase under this paragraph may not becomes effective until the applicant is advised in writing of OPS approval, which will be given only where it is clear that there is no practicable recourse to paragraph (b) of this section, and where granting such approval will not be in¬ consistent with the purposes of the Defense Production Act of 1950, as amended. 11. Section 26 is amended to read as follows: Sec. 26. Applicability. This regula¬ tion applies to services supplied in the 48 States of the United States, the Dis¬ trict of Columbia, and Alaska, Guam, Hawaii, Puerto Rico, Samoa and the Virgin Islands. Effective date. This Amendment 1 to Ceiling Price Regulation 34 is effective August 25, 1951. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director, Office of Price Stabilization. August 20, 1951. FILE following 85 Serv 32:8 (1-9-52) 85 Serv 32:9 Adjustment of Ceiling Price Regulation 34 Ceiling Prices Amendment 2 JAN. 9, 1952 OFFICE OF PRICE STABILIZATION TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [CeUlrig Price Regulation 34, Amdt. 2] CPR 34—Services ADJUSTMENTS OF CEILING PRICES Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended, Executive Order 10161 (15 P. R. 61 OS), and Economic Stabili¬ zation Agency General Order No. 2 (16 P. R. 738), this Amendment 2 to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment states the’basis for granting individual adjustments in ceil¬ ing prices to those engaged in the service trades subject to Ceiling Price Regula¬ tion 34, including, particularly, the acfi- justments required by section 402 (d) (4) of the Defense Production Act of 1950, as amended. It also provides that henceforth such applications (with cer¬ tain exceptions) are to be filed in the District Office of OPS rather than in the National Office of OPS as was previ¬ ously the case. The field offices are be¬ ing authorized to act upon such appli¬ cations which will pertain primarily to the furnishing of local services to non¬ industrial consumers. Applications for adjustment in certain cases will continue to be filed in the Na¬ tional Office of OPS. Such applications will include* those made by persons en¬ gaged in the service trades whose busi¬ ness activities cross the boundaries of OPS regions or whose business activities may involve OPS regulatory policies em¬ bodied in regulations other than Ceiling Price Regulation 34. Perhaps the most important category of applications re¬ quired to be filed in the National Office of OPS are applications pertaining to services supplied or sold in direct con¬ nection with industrial, manufacturing or agricultural activities. OPS experience with the service trades under this regulation and with numer¬ ous service establishments seeking re¬ lief, highlights the unusual cost account¬ ing difficulties peculiar to the service trades governed by CPR 34. Typical service establishments covered by Ceil¬ ing Price Regulation 34 are laundries, cleaning and dyeing plants, garment re¬ pair shops, radio and television repair services, automobile repair shops and home electrical and appliance repair shops. It would be extremely difficult for most of these service establishments to make the computations of cost in¬ creases or decreases in the manner pre¬ scribed by the so-called Capehart Amendment, i. e., section 402 (d) (4) of the Defense Production Act of 1950, WASHINGTON as amended. After careful evaluation, it is the opinion of the Director of Price Stabilization that the provisions of sec¬ tion 20 (a) of this regulation, as amend¬ ed, generally afford so-called Capehart relief to the fullest practicable extent. This amendment provides, nevertheless, that if someone in a service trade cov¬ ered by CPR 34 believes that he can show that he is entitled to a further increase in ceiling prices under the so- called Capehart Amendment, he is to in¬ form OPS fully of all the circumstances and make a full showing so that appro¬ priate study may be given the matter by OPS. The general standard in this amend¬ ment provides for an adjustment where the ceiling prices established by the reg¬ ulation impair the applicant’s normal representative pre-Korean earnings to such an extent that the effective opera¬ tion of his service business is threat¬ ened. The implementation of this gen¬ eral standard requires an analysis of the particular industry and service es¬ tablishment involved. The OPS will consider such significant facts as the nature of the industry and the size and characteristics of typical service estab¬ lishments in the industry, as well as of the applicant’s establishment. OPS will consider also whether the applicant is engaged solely in rendering the services for which he seeks an adjustment, or whether he also sells commodities or other services. Likewise, the OPS will consider whether the industry, of which the applicant’s establishment is a part, is a relatively self-cohtained industry or is closely related to a larger industry where the service is, for example, part of the production or the preparation for market of a commodity. In many service trades, particularly those who supply services to nonindus¬ trial consumers, many persons operate with very modest, if any, financial re¬ serves and employ relatively few employ¬ ees. These important facts also will be taken into account. In addition, this amendment takes into account the spe¬ cial problems of very small businesses, including the sketchiness of their records. The technical nature of the provisions of this amendment made it impracticable to consult formally with industry repre¬ sentatives, although various representa¬ tives from the service trades were in¬ formally consulted and consideration was given to their recommendations. AMENDATORY PROVISIONS Section 20 (a) of Ceiling Price Regula¬ tion 34 is amended to read as follows: (a) Adjustments in general. OPS will adjust your ceiling price upon a showing that your ceiling prices impair your nor¬ mal earnings, in a representative pre- Korean period, to such an extent that the effective operation of your service busi¬ ness is threatened. In considering applications for adjust¬ ment under this section, and the extent, if any, to which relief should be granted, OPS will, so far as pertinent, take into account, among other things: Your post- Korean increases and decreases in cost; the earnings of your services business as well as the earnings of youf entire busi¬ ness operation; the extent to which the impairment of yOur pre-Korean earnings results from non-recurring factors such as flood, fire, strike; change in sales vol¬ ume ; the nature and size of your firm or company and of the service trade of which it is a part; whether the service? supplied or sold by you are a necessary part of the production of a commodity or of the preparation of a raw material for marketing; whether your ceiling price is established by a regulation supple¬ mentary to Ceiling Price Regulation 34; and whether the records upon which you rely to support your showing of impair¬ ment of earnings are reasonable and ade¬ quate for a business of your size in your service trade.. If you prove to the satisfaction of the OPS that you are entitled to relief un¬ der this adjustment provision, but, be¬ cause of the extremely small volume of your business, you cannot establish clearly the extent of the impairment of your pre-Korean earnings, OPS may take into account the ceiling prices and un¬ derlying costs for substantially the same services sold or supplied by others in your area. (1) Except under the circumstances listed or described in subparagraph (2) of this paragraph, you must file your application, in duplicate, on OPS Public Form Pub43, Revised, with the OPS District Office for the district in which your place of business is located. In addition to the information required of you by OPS Public Form Pub43, Revised, OPS may request such other information as may be found necessary in consider¬ ing your application. The authority to act upon your application is being dele¬ gated to the OPS Regional Offices, with power to redelegate this authority to the OPS District Offices. (2) You must file your application on OPS Public Form Pub43, Revised, in duplicate, with the Office of Price Sta¬ bilization, Washington 25, D. C., if you sell or supply any services, subject to Ceiling Price Regulation 34, which are listed or described below: (i) Any services supplied by a person whose business (services, and other busi¬ ness) normally is carried on in more than one OPS region. (ii) Any services rendered to manu¬ facturing or industrial establishments which are either a necessary part in the production of a commodity or are useful 85 Serv 32:10 or necessary in the preparation of-a raw material for marketing. (iii) Any services rendered on food or agricultural commodities. (iv) Royalty arrangements of any kind. (v) Services of selling agents, brokers or auctioneers. (vi) Real property management serv* ices. (vii) Banking services. (viii) Admissions to athletic and sport¬ ing events. (ix) Non-exempt services performed or supplied by public utility and common carrier corporations, their lessees, con¬ cessionaires or assigns (such as parking facilities, locker facilities, installation of gas and electric ranges). (x) Warehouse facilities. (xi) Dock and terminal facilities. If some of the services you sell or sup¬ ply are listed or described in this sub- paragraph and some of the services you sell or supply are not so listed or de¬ scribed, you must file your application for adjustment for all of the services which you sell or supply with the Office of Price Stabilization, Washington 25, D. C. In addition to the information re¬ quired of you by OPS Public Form Pub43, Revised, OPS may request such additional information as may be found necessary in considering your applica¬ tion. (3) Because of inherent cost account¬ ing problems peculiar to the various service trades, exact determination of cost increases or decreases under section 402 (d) (4) of the Defense Production Act of 1950, as amended, would impose an insuperable difficulty upon the service trades. Generally, the provisions of this section, other than this subparagraph, will afford, to the fullest practicable ex¬ tent, the relief permitted by section 402 (d) (4) of the Defense Production Act of 1950, as amended. If, however, you believe that such other provisions of this section do not afford you an adjustment which permits as much of a ceiling price increase as you are entitled to under section 402 (d) (4) of the Defense Pro¬ duction Act of 1950, as amended, you may write and make a full showing to the Office of Price Stabilization, Wash¬ ington 25, D. C., stating the relief to which you believe you are entitled and the reasons for your belief. You should also state the relief you have previously received under this section and the rea¬ sons why you believe that such relief is not sufficient; whether you have an ap¬ plication pending before OPS for relief under any other provision of this section, and if so, the date of filing and the address of the OPS office with which you filed the application. You should also supply all of the reports required by General Overriding Regulation 20 or General Overriding Regulation 21, whichever by its terms would be appli¬ cable to your business if services covered by Ceiling Price Regulation 34 were not exempt from those regulations. (4) Any application filed prior to January 14, 1952 will be given due con¬ sideration in accordance with the stand¬ ards provided in this section, as amended. Accordingly, you need not re¬ vise such application. If supplementary information is necessary you will be ad¬ vised by OPS in due course. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Supp. 2154) Effective date. This Amendment 2 to Ceiling Price Regulation 34, is effective January 14, 1952. Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Michael V. DiSalle, Director of Price Stabilization. January 9, 1952. FILE following 85 Serv 32:10 (4-23-52) 85 Serv 32:11 Adjustment of Ceiling Prices for New Service Sellers (Amending Sec. 20(a)) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 34 Amendment 3 APRIL 23. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 34, Arndt. 3| CPR 34-Services ADJUSTMENT OF CEILING PRICES FOR NEW SERVICE SELLERS Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.), as amended. Executive Order 10161 (15 P. R. 6105), and Economic Stabilization Agency General Order No. 2 (16 P. R. 738), this Amendment 3 to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS This Amendment 3 to Ceiling Price Regulation 34 provides that ceiling prices for services supplied by sellers, without normal earnings experience in the pre-Korean period because they have been in business a relatively short time, may be adjusted upon a showing of fi¬ nancial hardship under section 20 (a) of that regulation. Before Amendment 2 to Ceiling Price Regulation 34 became effective on January 14, 1952, sellers re¬ gardless of when they entered into busi¬ ness, could apply for relief under this section upon a demonstration of substan¬ tial financial hardship threatening their ability to continue to supply a service. By Amendment 2 to Ceiling Price Regu¬ lation 34, section 20 (a) was revised so that it appeared to apply to only those suppliers of services who had suffered an impairment of normal earnings in a rep¬ resentative pre-Korean period. This amendment clearly restores the broader scope to section 20 (a). In order to qualify for relief under this amendment the seller of services must show first, that he had no normal earn¬ ings in a representative pre-Korean pe¬ riod because his service business is rela¬ tively new. It must also appear, if the facts can be reasonably ascertained, that his present ceiling prices for services are below the prevailing level for such serv¬ ices in his trading area. Finally, the ap¬ plicant must show that his ceiling prices are causing or will cause him to operate his service business at a loss. The technical nature and routine character of the provisions of this amendment made it impracticable to consult formally with industry repre¬ sentatives, although wherever feasible various representatives from service fields were informally consulted and con¬ sideration was given to their recommen¬ dations. In the judgment of the Di¬ rector of Price Stabilzation the provi¬ sions of this regulation are generally fair and equitable and are necessary to ef¬ fectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Section 20 (a) of Ceiling Price Regu¬ lation 34, as amended, is further amend¬ ed by adding after the first sentence thereof, the following: “OPS will also ad¬ just your ceiling prices upon a showing that you had no normal earnings, in a representative pre-Korean period, be¬ cause your service business is relatively new; that your ceiling prices are below the prevailing level of ceiling prices for the same services in your trading area; and that because of the level of your ceil¬ ing prices, your service business is, or will soon be, operated at a loss.” (Sec. 704, 64 Stat. 816, as amended; 60 U. 8. C. App. Supp. 2154) Effective date. This Amendment 3 to Ceiling Price Regulation 34 is effective April 28, 1952. Note' The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget In ac¬ cordance with the Federal Reports Act of 1942. Ellis Arnall, Director of Price Stdbilizatior April 23, 1952. i* " r \ ■» -■• ■•1*0-. • •• \3 ■ •• < ■ .'>« »( lie til -ju‘ •’ • . «*j * ■ ■? ■ v- ■ _ ' I • .**••/>* i i). ... - FILE following 85 Serv 32:11 (10-22-52) 85 Serv 32:13 Modification of Posting Requirements (Amending Sec. 18(f) (2); adding Sec. 18(f)(3)) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 34 Amendment 4 OCT. 22. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Celling Price Regulation 34, Amdt. 4] CPR 34—Services MODIFICATION OF POSTING REQUIREMENTS Pursuant to the Defense Production Act of 1950, as amended. Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment 4 to Ceiling Price Regulation 34, as amended, amends sec¬ tion 18 (f) (2) of that regulation to re¬ quire all service establishments making sales at retail to post, on an official poster supplied by the Office of Price Stabili¬ zation, a list of the ceiling prices of its principal services. This amendment also modifies the existing requirement that service suppliers post all ceiling prices, by requiring such suppliers to keep avail¬ able for public inspection, either on ad¬ ditional posters or in separate lists, the ceiling prices of additional services which are offered for sale. Service establishments making sales at retail which were doing business during the base period December 19, 1950 to January 25, 1951, inclusive or which commenced doing business prior to May 16, 1951, were required by CPR 34 to file a list of their ceiling prices with the Dis¬ trict Office of tne Office of Price Stabili¬ zation and to post such ceiling prices on or before June 15, 1951. New service businesses and sellers of new services were also required to post and file their ceiling prices within thirty days of the date that the ceiling price for the service was established by this regulation. In¬ formal surveys of service establishments by representatives of the Office of Price Stabilization has shown a lack of uni¬ formity with respect to the size of post¬ ing, the subject matter covered, and the visual accessibility to the purchaser of the posted ceiling prices, In accordance with a basic program of price stabiliza¬ tion, the Director has determined that in order to apprise purchasers of services subject to Ceiling Price Regulation 34, that modification of the posting require¬ ments as contained in section 18 (f) (2) is necessary and thus is providing offi¬ cial posters upon which sellers may list the ceiling prices of their most repre¬ sentative services, these posters be prom¬ inently displayed in the service estab¬ lishment where it can be easily seen and read by the customers. The numerous and diverse establish¬ ments which will be affected by this amendment have made it impracticable to consult formally with Industry Ad¬ visory Committees including trade asso¬ ciation representatives, however, the Di¬ rector has given consideration to in¬ formal recommendations from various service trades. In the judgment of the Director the provisions of this regulation are gen¬ erally fair and equitable and are neces¬ sary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS Ceiling Price Regulation 34, as amend¬ ed, is further amended in the following respects: 1. Section 18 (f) (2) is amended to read as follows: If you operate a service establishment making sales at retail, you must, not later than 7 days after you receive an official OPS poster, post your ceiling prices for your principal services on such official poster in a prominent place in your service establishment where it can easily be seen and read by your cus- tioners. In the event you do not receive an official poster, you must, not later than November 26, 1952, or 30 days after the date your ceiling price for a service is first established by this regulation, whichever is later, obtain an official poster from your OPS District Office and post your ceiling prices in accordance with this section. Ceiling prices for ad¬ ditional services must be kept readily available for public inspection at your place of business. You may use either additional posters or separate lists identifying each service and ceiling price. 2. Section 18 (f) is further amended by adding new subparagraph (3) which reads as follows: (3) If a poster is mutilated or becomes badly soiled or otherwise damaged, it must be replaced by a new one which may be obtained from your OPS District Office. Erasures or changes in ceiling prices listed on the poster, excepted to correct clerical or arithmetical errors are prohibited, unless authorized by OPS. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Supp. 2154) Effective date. This amendment 4 to Ceiling Price Regulation 34 shall be ef¬ fective October 27, 1952. Note:The record-keeping and reporting re¬ quirements of this supplementary regulation have been approved by the Bureau of the Budget In accordance with the Federal Re¬ ports Act of 1942. Tighe E. Woods, Director of Price Stabilization. October 22. 1952. «- i r* , • ■ . ai' . - «rd , ’ • ■ i - s * . f ■, »J,a< i , • j • ■■ i«*? ’ i , .r ■ 4 VJ 4- • •J' S ^ ‘ J ’ .t • • . ■■ c ~ L>-»f • >«,*.■ JWiv A 1 JM 1! r «!..■-• *J. j* y. " ; • ■ ' ' • .» .4 v ♦ <3 ? :i ■ ■ i . ) V' i . .. - >•: jc .. V ! o.‘ ' N 13 \; t> .19 • . I -t f ... f I FILE following 85 Serv 32:13 (10-31-52) 85 Serv 32:15 Base Period Contracts for Delivery at Increased Prices (Amending Sec. 12(a)) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 34 Amendment 5 OCTOBER 31. 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency (Ceiling Price Regulation 34, Arndt. 5] CPR 34—Services BASE PERIOD CONTRACTS FOR DELIVERY AT INCREASED PRICES Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amendment 5 to Ceiling Price Regula¬ tion 34 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment changes the cut-off date for allowing recognition of con¬ tracts for increased prices under section 12 (a) of CPR 34. This section has pro¬ vided, in part, that if in the base period a seller announced in writing an increase in his prices for a service to his classes of customers generally but did not de¬ liver the service at the increased price to any of the purchasers supplied in the base period because he was bound under contracts made before the an¬ nouncement in writing of the increase, then the seller could institute the in¬ crease at the expiration of each old con¬ tract if new contracts for future delivery of the service at the increased prices were entered into prior to December 19, 1950. This critical December 19, 1950 date is now changed to January 26, 1951. The purpose of including this provi¬ sion in section 12 (a) was to permit sellers to use increased prices at which they did not actually deliver during the base period but at which they would have delivered had they not been bound by contractual commitment. It is an exception to the pricing rules of section 5 of the regulation which require a seller to establish his ceiling prices for a serv¬ ice on the basis, generally, of the highest price at which he supplied the service during the December 19, 1950 through January 25, 1951 base period. At the time section 12 (a) was formulated the Director determined, in the light of the rapid raise of prices during the months of December, 1950 and January, 1951, that the section 12 (a) exception to the provisions of section 5 should be restrict¬ ed by the requirement of the seller hav¬ ing made the contracts before December 19, 1950. This was to prevent the possi¬ bility of letting in under this exception any price increases which were an¬ nounced by the seller in order to gain a price advantage in anticipation of the issuance of ceiling price regulations. Experience under CPR 34 indicates, however, that the purpose of the section can be attained without rigidly exclud¬ ing those sellers who entered into their future delivery contracts between De¬ cember 19, 1950, and January 25, 1951, inclusive. There are many sellers who in good faith announced price increases during the base period, were not able to deliver at the higher price immediately because of prior contractual obligations, but did contract during the base period for future delivery at the increased prices. The Director has concluded that the provisions of section 12 (a) should be amended to permit the sellers who entered into such future delivery con¬ tracts prior to January 26, 1951, to use the increased prices for the services if they are able to meet the other condi¬ tions of the amended portion of section 12 (a). In view of the nature of this amend¬ ment, consultation with industry repre¬ sentatives, including trade association representatives, has been impracticable. AMENDATORY PROVISIONS The last unnumbered paragraph of section 12 (a) of Ceiling Price Regulation 34 is amended to read as follows: If, however, in the base period you an¬ nounced in writing an increase in your prices for a service to your classes of pur¬ chasers generally, but you did not deliver the service at the increased price to any of the purchasers whom you supplied in the base period because you were bound under contracts made before the an¬ nouncement in writing of that price in¬ crease, and you did enter into new con¬ tracts for future delivery of the service at the increased price prior to January 26, 1951, and all such new contracts pro¬ vided for delivery at the increased price, then at the expiration of each old con¬ tract you may institute the announced price increase, adjusted to reflect the customary differential in prices among your classes of purchasers. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment is ef¬ fective November 5, 1952. Tighe E. Woods, Director of Price Stabilization. October 31, 1952. ✓ . .! rru» . .u i! *'• ■: - : (11-6-52) 85 Serv 32:17 FILE following 85 Serv 32:15 Miscellaneous Amendment (Amending Title and Paragraph (a) of Sec. 13) OFFICE OF PRICE STABILIZATION WASHINGTON Ceiling Price Regulation 34 Amendment 6 NOVEMBER 6, 1952 TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency | Ceiling Price Regulation 34, Arndt. 6| CPR 34—Services ACQUIRING A BUSINESS OR SUPPLYING SERV¬ ICES PREVIOUSLY SUPPIIED BY ANOTHER PERSON AT THE SAME BUSINESS ESTABLISH¬ MENT; MOVING OF BUSINESS! CHAINS Pursuant to the Defense Production Act of 1950, as amended. Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 6 to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS Section 13 (a) is being amended to clarify its scope and purposes. As the section was previously written it was clear that where there had been a volun¬ tary transfer of a previously established service business such a transfer was sub¬ ject to the provisions of section 13 (a) and the transferee was therefore gov¬ erned by the ceiling prices applicable to the transferor. Section 13 (a), which deals with th6 acquisition of a previously established service business establish¬ ment, thus generally preserved to the classes of purchasers at that establish¬ ment the same services without any in¬ crease in their ceiling prices. It was also recognized that a mere formal break in the chain of direct transfer should not be allowed to become an easy way for bringing about ar- increase in those ceil¬ ing prices. Accordingly, the section also was considered to apply to a seller who acquired such a business by means other than by way of direct transfer from its previous owner. For example: Landlord A rented a vacant lot to tenant B for a period from January 1, 1950, to Decem¬ ber 31, 1951. During the base period of December 19, 1950, to January 25, 1951, inclusive, B operated this lot as a parking lot and established ceiling prices for his parking lot services under section 5 of this regulation. On the expiration of this lease Landlord A rented the lot. effective January 1, 1952, to tenant C. Under such or similar circumstances C was considered to have acquired B’s parking lot business and B’s ceiling prices for parking lot services. Because, how¬ ever, of questions raised as to the rea¬ sonableness of applying the language of section 13 <a) to such a situation, that section is now amended to make plain that acquisitions of a previously estab¬ lished business whether with or without privity of contract are governed by the section. Section 13 (a), however, does not apply under circumstances which demonstrate that there is no substantial continuity in the operation of substantially the same kind of service business at the establishment. For example, purchaser X buys a parking lot business from Y on May 1, 1952. Between May 1, 1952, and October 13, 1952, X operates an open air fruit and vegetable market at this parking lot location. Thereafter if X discontinues the operation of this mar¬ ket and establishes a parking lot busi¬ ness, his ceiling prices for parking serv¬ ices will be determined by the applicable sections of this regulation other than section 13 (a). This amendment also clarifies the reg¬ ulation by expressly stating the method of establishing new ceiling prices if the ceiling prices of the previously estab¬ lished service business are not on file in the OPS district office, and the person carrying on the business has not ob¬ tained the records necessary to establish the ceiling prices of the previously estab¬ lished service business. In the judgment of the Director of Price Stabilization this amendment is generally fair and equitable and is nec¬ essary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. In view of the clarifying nature of this amendment, special circumstances have rendered consultation with industry rep¬ resentatives, including trade association representatives, impracticable. amendatory provisions Ceiling Price Regulation 34, as amended, is further amended as follows: 1. The title of section 13 is amended to read as follows: Sec. 13. Acquiring a business or sup¬ plying services previously supplied by another person at the same business establishment; moving of business; chains. 2. Paragraph (a) of section 13, as amended, is further amended to read as follows: (a) Acquiring a business or supply¬ ing services previously supplied by an¬ other person at the same business estab¬ lishment. G) If, after January 25, 1951, you acquire a previously established service business and you carry on such business in an establishment separate from an establishment previously owned or operated by you, or if, after January 25, 1951, you carry on a service busi¬ ness, at such a separate establishment, similar to a service business which within a reasonable period prior thereto had been carried on by another person at such a separate establishment, your ceiling prices for the services you supply at such a separate. establishment shall be the same as those previously in effect for such services at that establishment, and your obligation to keep records suffi¬ cient to verify such prices shall also be the same. You must further prepare and preserve (if that has not already been done for this establishment) and keep up to date the statement required under section 18 of this regulation. The person from whom you acquire the busi¬ ness or the last person that carried on such a previously established business shall preserve and turn over to you all records of transactions he may have with respect to that business which are neces¬ sary to enable you to comply with the records provisions of this regulation. (2) If you cannot obtain such records, and if the ceiling prices of the previously established service business are not on file in your OPS district office, you may apply for new ceiling prices under sec¬ tion 7 of this regulation. In addition to the information otherwise required by that section, your application must con¬ tain the trade name and address of the previously established service business and a statement that you cannot obtain such records. If your ceiling prices are established under section 7 of this regu¬ lation for the reason stated above, OPS may change them to the ceiling prices of the previously established service busi¬ ness when ascertained. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Supp. 2154) Effective date. This Amendment 6 to Ceiling Price Regulation 34 is effective November 12, 1952. Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Tighe E. Woods. Director of Price Stabilization. November 6, 1952. raMftXMtMsa&c in. uirnnii fi—wim ■ . ' r ' - FILE following 85 Serv 32:17 (11-12-52) 85 Serv 32:19 Filing of Applications for Adjustment (Amending Sec. 20(a)(2)) Ceiling Price Regulation 34 Amendment 7 NOVEMBER 12, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Ceiling Price Regulation 34, Arndt. 7] CPR 34—Services FILING OF APPLICATIONS FOR ADJUSTMENT Pursuant to the Defense Production Act of 1950, as amended, Executive Order 10161, and Economic Stabilization Agency General Order No. 2, this Amendment to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS This amendment deletes from the list of services for which ceiling price ad¬ justment applications must be filed with the National Office of OPS rather than the OPS District Office the following: services rendered on food or agricultural commodities; services of selling agents, brokers or auctioneers; real property management services; banking services; admissions to athletic and sporting events; non-exempt services rendered by public utility and common carrier cor¬ porations, their lessees, concessionaires or assigns; and dock and terminal fa¬ cilities. The result is that all applica¬ tions for adjustments of ceiling prices under section 20 (a) of Ceiling Price Regulation 34 must be filed with the ap¬ propriate OPS District Office, except in the following cases: Where the service is supplied by a person whose business normally is carried on in more than one OPS region; where the service is ren¬ dered to manufacturing or industrial establishments which are either a nec¬ essary part in the production of a com¬ modity or are useful or necessary in the preparation of a raw material for mar¬ keting; royalty arrangements of any kind, and warehouse facilities. The re¬ quirement that applications must be filed with the National Office if any one or more of the services sold or supplied by the applicant are required to be filed with the National Office is unchanged. It is the policy of the Office of Price Stabilization to delegate to the field of¬ fices the duty of acting on applications by sellers wherever it is possible to do so. Ordinarily, the field office is better aware of local problems and situations than is the National Office, and it is usually more convenient for the seller to deal with a nearby office than with Washington, D. C. In most cases it is more efficient for both the seller and the Office of Price Stabilization if the field office can process applications. On the other hand, some matters by their na¬ ture require analysis and other process¬ ing by experts generally not available among the small staff of a District Of¬ fice. Other matters involve inter-re¬ gional application, require liaison with other government agencies, or for vari¬ ous other reasons can be more efficiently disposed of in the National Office. The Director of Price Stabilization has concluded, therefore, that applica¬ tions for adjustment of ceiling prices under section 20 (a) of Ceiling Price Regulation 34 should be handled by OPS field offices, with the exceptions noted in the first paragraph above. All of the applications that must still be filed at Washington involve services or situa¬ tions that in most cases the National Of¬ fice is best equipped to process. In view of the technical nature of this amendment, special circumstances have rendered consultation with industry rep¬ resentatives, including trade association representatives, impracticable. AMENDATORY PROVISIONS Section 20 (a) of Ceiling Price Regula¬ tion 34, as amended, is further amended by deleting from paragraph (2) thereof subparagraphs (iii), (v), (vi), (vii), (viii), (ix) and (xi), and by renumbering subparagraphs (iv) and (x) as (iii) and (iv), respectively, so that paragraph (2) reads as follows: (2) You must file your application on OPS Public Form 43, Revised, in dupli¬ cate, with the Office of Price Stabiliza¬ tion, Washington 25, D. C., if you sell or supply any services, subject to Ceiling Price Regulation 34, which are listed or described below: (i) Any services supplied by a person whose business (services, and other busi¬ ness) normally is carried on in more than one OPS region. (ii) Any services rendered to manu¬ facturing or industrial establishments which are either a necessary part in the production of a commodity or are use¬ ful or necessary in the preparation of a raw material for marketing. (iii) Royalty arrangements of any kind. (iv) Warehouse facilities. If some of the services you sell or supply are listed or described in this subparagraph and some of the services you sell or supply are not so listed or described, you must file your application for adjustment for all of the services which you sell or supply with the Office of Price Stabilization, Washington 25, D. C. In addition to the information re¬ quired of you by OPS Public Form 43, Revised, OPS may request such additional information as may be found necessary in considering your applica¬ tion. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This amendment to Ceiling Price Regulation 34 is effective November 17, 1952. Note: The record-keeping and reporting requirements of this amendment have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. Tighe E. Woods, Director of Price Stabilization. November 12, 1952. ■ ■ • :: : i! o: a y ' . id^ovil.do* . 1 FILE following 85 Serv 32:19 (12-11-52) 85 Serv 32:21 f\irfher Modification of Posting Requirements (Amending Sec. 18(f)) Ceiling Price Regulation 34 Amendment 8 DECEMBER 11, 1952 OFFICE OF PRICE STABILIZATION WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency |Ceiling Price Regulation 34, Arndt. 8) CPR 34—Services FURTHER MODIFICATION OF POSTING REQUIREMENTS Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161. and Economic Stabilization Agency General Order No. 2, this Amendment to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS This Amendment 8 to Ceiling Price Regulation 34 amends section 18 < f > < 2 >, as amended, to remove from the posting requirements of the regulation banks, funeral establishments, establishments to the extent they supply or service prosthetic devices, and establishments in which the posting of a price would be violative of a statute or ordinance. The complexity of the price structure of services provided by banks differs from the ordinary pricing of a retail or consumer type of service. In view of this and of the special nature of the re¬ lationship between the buyers and sell¬ ers of these services, it is deemed un¬ necessary to require banks to post their ceiling prices. Prosthetic devices are usually tailored to a prescription, having to do with mat¬ ters peculiar and personal to each pur¬ chaser with a resulting pricing formula that is difficult to reduce to a form that when posted has much informational value to the buyer. The posting of ceiling prices for fu¬ neral services are inappropriate by the very nature of the service. In order to avoid a conflict with local conditions, posting will not be required wherever a state statute or municipal ordinance prohibits the posting of a price for any reason. These exemptions from the require¬ ment of posting will not impair the price stabilization program, nor will such ex¬ emptions have any material effect upon the cost of living or upon the general level of prices. The technical nature and routine character of the provisions of this amendment made it unnecessary to consult formally with industry rep¬ resentatives, including trade association representatives, although wherever fea¬ sible various representatives from serv¬ ice fields were informally consulted and consideration was given to their recom¬ mendations. In the judgment of the Di¬ rector of Price Stabilisation the provi¬ sions of this regulation are generally fair and equitable and are necessary to effectuate the purposes of Title IV of the Defense Production Act of 1950, as amended. AMENDATOR V PROVISIONS Section 18 <f> (2* of Ceiling Price Reg¬ ulation 34. as amended, is further amended by adding a new sentence at the end thereof as follows: “Provided however, that the provi¬ sions of this paragraph shall not apply to the following: <i> Banks. ‘ ii > Funeral establishments. <iii> Establishments to the extent that they supply or service prosthetic devices. <iv> Establishments in which the posting of a price would violate a state statute or municipal ordinance.’' (Sec. '<04. 64 Stat 816, as amended; 50 U S. C. App. Supp. 2154) Effective date. This amendment to Ceiling Price Regulation 34 shall be ef¬ fective December 16, 1952. Joseph H. Freehill, Acting Director of Price Stabili¬ zation. December 11, 1952. 11 ■<! * ifri ' . ■ ' * VI • * FILE following 85 Serv 32:21 (1-19-53) 85 Serv 32:23 Modification of Central Ceiling Price Regulation 34 Pricing Provisions Amendment 9 (Amending Sec. 10) OFFICE OF PRICE STABILIZATION JANUARY 19, 1953 WASHINGTON TITLE 32A—NATIONAL DEFENSE, APPENDIX Chapter III—Office of Price Stabiliza¬ tion, Economic Stabilization Agency [Celling Price Regulation 34, Amdt. 9] CPR 34—Services MODIFICATION OF CENTRAL PRICING PROVISIONS Pursuant to the Defense Production Act of 1950, as amended, Executive Or¬ der 10161, and Economic Stabilization Agency General Order No. 2, this Amend¬ ment 9 to Ceiling Price Regulation 34 is hereby issued. STATEMENT OF CONSIDERATIONS Section 10 of Ceiling Price Regulation 34 provides for the establishment of uni¬ form prices for sellers owning or operat¬ ing more than one service establishment. Since there is no restriction on the ap¬ plicability of this section, it is applicable in the territories and possessions of the United States. However, it has been the experience of the Office of Price Stabili¬ zation that prices established in the con¬ tinental United States are not neces¬ sarily fair and equitable when applied in the territories and possessions of the United States. This difference is brought about by differences in wage rates, in¬ creased costs of parts and materials due to shipping charges, and other similar factors. The OPS, in commodity regu¬ lations, has generally made the distinc¬ tion that uniform pricing orders issued for the continental United States are not applicable in the territories and posses¬ sions of the United States. This amendment changes section 10 to provide that no order issued under that section shall apply in the territories and possessions of the United States. Special factors have made it imprac¬ ticable to consult with the industries af¬ fected, including trade association rep¬ resentatives. In the judgment of the Director, this action is generally fair and equitable and is necessary to effectuate the purposes of the Defense Production Act of 1950, as amended. AMENDATORY PROVISIONS 1. Section 10 of Ceiling Price Regula¬ tion 34 is amended to read as follows: Sec. 10. Central pricing. OPS may when it deems it consistent with the pur¬ poses of this regulation establish uniform prices for sellers owning or operating more than one service establishment and may for this purpose require sellers to furnish necessary information. No order issued under this section applies to sales of services in the territories and posses¬ sions of the United States. Ceiling prices for sales of services in the territories and possessions are to be determined under sections 5, 6, 7, or 8 of this regulation, as may be appropriate. (Sec. 704, 64 Stat. 816, as amended; 50 U. S. C. App. Sup. 2154) Effective date. This Amendment 9 to Ceiling Price Regulation 34 is effective January 24, 1953. Joseph H. Preehill, Director of Price Stabilization. January 19, 1953. • ~ - . •• \l - ■ * Q ■ FILE following 85 Serv 32:11 (6-19-52) 85 Serv 32:200.1 INTERPRETATIONS CPR 34, GENERAL COMMON CARRIERS Classification-exclusive function of National Office The determination of whether a person is a common carrier is the sole function of the National Office of OPS under existing policy. Once the National Office makes that determination, the person is not subject to any price control by OPS regula¬ tions. Thus the record-keeping, reporting .or evasion provisions of the GCPR or CPR 34 cannot be made applicable to common carriers because these provisions are inci¬ dental to the control of nrices. (4/8/52 No. 5) \ *r FILE following 85 Serv 32:200.1 (8-18-52) 85 Serv 32:200.3 INTERPRETATIONS CPR 34, General JUKE BOX MUSIC Seller is person who controls rendition of service The facts disclose that X is the owner of automatic music machines, sometimes called juke boxes, which play a record or records when a coin is deposited in them; that he installs these machines, retaining title to them, in the business premises of cafe and tavern operators; that he makes periodic record substitutions, and repairs and services the machines; that he alone determines the price that will be required to operate the machines; that he takes possession of the coins deposited in the machines; and that the arrangement under which he installs the machines is that he will pay the premises operator a percentage, usually 50$ of the coins deposited. The question has been raised as to whether on the basis of these facts the machine owner and the proprietor of the establishment may both properly be regarded as sellers of the music service to the public. Under the facts presented, the machine owner, X is the sole seller of the music service to the public. It is recognized that it would be possible to have an arrangement whereby the premises operator and machine owner jointly render the service, but not when the rendition of the service is completely under the control of the machine owner. It would also be possible to have an arrangement whereby ’the machine owner rents the machine to the premises operator who services the machine, substitutes records periodically, and collects the coins, and in which the machine owner does nothing but collect his rental. In such a case, the music service to the public would be rendered by the premises operator alone. In the case you state, however, the machine owner X has complete control over the music service. He substitutes the records, services the machine, determines the charge, and collects the coins. The only connection the premises operator has with the music service is in permitting the machine owner to operate the machine on his premises, and this is a service to the machine owner, not to the public generally. Under these circumstances, the machine owner, and not the proprietor of the establishment, is the seller of the music service to the public. (7/31/52 No. 18) • , ■ m <y ' ’ . ■ Q FILE following 85 Serv 32:200.1 (6-30-52) 85 Serv 32:202.1 INTERPRETATIONS CPR 34, SEC. 2 COVERAGE Consignee of goods-supplier of services not wholesaler of goods A consignee of goods is not a wholesaler of such goods, but a supplier of services to the consignor of the goods. His ceiling prices for the sale of such services are determined under CPR 34. In the sale of the consigned goods the ceiling price is that of the consignor. (6/10/52 No. 5) - -> <P Mi." i &i AX W < t FILE following 85 Serv 32:202.1 (7-3-52) 85 Serv 32:202.3 INTERPRETATIONS CPR 34, SEC. 2 COVERED SERVICES Brokers and commission agents Commission agents fees and brokers’ fees are services subject to CPR 34 unless spe¬ cifically established under other regulations. (5/8/52 #13) / . : . " - ■ v ' ■ • ■ ~ \f ■ ' 5r .— — yx '.,h > ' ' rT -1 ’ '--LX. n - * FILE following 85 Serv 32:202.3 (7-11-52) 85 Serv 32:202.5 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Coin operated toilet facilities The subject company installs toilet equipment with coin operated locks in buildings owned and operated by others under a contract whereby the lock company and the build¬ ing owner or operator divide the coins collected in designated proportions. Both the subject company and the owner or operator of the building are subject to CPR 34. The Company is rendering a toilet service to the public, and the building owner or operator is rendering a service to the company in permitting the installation and operation of locks and equipment. Both services are subject to CPR 34. ' - FILE following 85 Serv 32:202. 7 (7-14-52) 85 Serv 32:202. 9 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Construction services exempted under CPR 93, Section 1(b)—exempt also from CPR 34 (see Interps. following CPR 93, Sec. 1, page 61 Ind 49a:201.1). I • " ' ' MH ■ " . po . ' * . > FILE following 85 Serv 32:202.9 (7-25-52) 85 Serv 32:202.11 INTERPRETATIONS CPR 34, Sec. 2 MAIL ADVERTISING --typing, addressing, mailing, etc., as separate service If the charge for the services of typing, addressing, mailing, etc., are. included in the ceiling price for the manufacture of mailing circulars then such services are "services related thereto" within the coverage of GOR 8. However, if the printing and publishing of mailing circulars are separate from the services connected with the distribution of the circulars and a separate charge is made for services of distribution then such services are within CPR 34 and the ceiling prices are governed accordingly. (8/3/51 No. 13) 85 Serv 32:202.12 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Printing names or identifying marks on cartons which belong to another person A printer who prints identifying names or marks on cartons which originally were and remain the property of another person is performing a service under CPR 34 and is not a manufacturer under CPR 22. (6/21/51 No. 15) FILE following 85 Serv 32:202.12 (7-28-52) 85 Serv 32:202.13 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Repair of clocks and watches The repair of watches and clocks is subject to CPR 34; but the repair of a grand¬ father clock which was manufactured prior to 1850 is exempt, however, under GOR 14, Section 3(2)(43). (8/3/51 No. 10) ,Y- i ^ ’ i\ yr 3 w ' ft • ■ 1 " . : . . Y..,L . . . ■ . > FILE following 85 Serv 32:202. 13 (7-31-52) 85 Serv 32:202.15 INTERPRETATIONS CPR 34, SEC. 2 COVERAGE Funeral director supplying extras - sale and agency distinguished Ordinarily a funeral director supplies extra services as a principal and not as an agent either for the supplier of the service or commodity or for the estate. In the usual case, the director deals directly with the suppliers, obligating himself to pay for the services and commodities, taking title to the latter and then reselling both to the customer. In such an event, with the possible exemption of commodity items for which charges were separately stated during the base period, funeral directors may not pass on increased costs to the customers (section 11 of Ceiling Price Regulation 34, as amended). Furthermore, when a funeral director resells a commodity or service which was exempt when sold to him by the original supplier such an exemption does not extend to the resale of that commodity or service by the funeral director. Of course, there may be instances when the funeral director does act as agent for the supplier or the estate, in which event he may be entitled to his agent's fee from his principal. This presents no particular problem if in the base period he custom¬ arily acted as agent. In such case, he may, if he is an agent for the supplier, pass on the legal prices of his principal, the fee for his services then being paid by the supplier-principal; or he may, if he is the agent for the estate, charge the estate the legal price of the supplier plus his CPR 34 ceiling price for his services as an agent. He may also,even if in the base period he acted only as a principal for the supply of these services, supply these services as an agent. In that event, if the agency is for the supplier, the estate pays the supplier's legal price for the sup¬ plier's service, a component of which may be the agent's charges. If, however, under those circumstances, the agency is for the estate, the ceiling price he may charge the estate for the supply of these services plus his agency fee shall in no event exceed his base period ceiling prices as a principal supplier of these services. (5/16/52 No. 51) 85 Serv 32:202.16 INTERPRETATIONS CPR34, SEC. 2 ( COVERAGE Admission prices to automobile and livestock shows, basketball games and Boy Scout circuses - subject to CPR 34 Admission charges for automobile and livestock shows, basketball games and Boy Scout circuses are not exempt under section 14(d) of GCPR and are covered by CPR 34. (7/3/52 No. 17) ( FILE following 85 Serv 32:202.16 (8-1-52) 85 Serv 32:202.17 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Kiln-drying of lumber CPR 140 covers Northeastern White Pine lumber in all degrees of seasoning and all states of working. A seller of kiln-dried lumber may apply for a ceiling price under Section 4.1 of CPR 140. If he does not so apply, he must, for lumber kiln-dried to a moisture content of 17 per cent or less, use the air-dried lumber ceiling prices of CPR 140, and for lumber kiln-dried to a moisture content of more than 17 per cent, use the green lumber ceiling prices of CPR 140. If the lumber is sold green, and the kiln-drying is supplied as a separately re¬ quested service, then, because CPR 140 does not establish specific ceilings for kiln- dried lumber, the seller may charge thv ceilings for the green lumber under CPR 140 and may make a further charge for the -.rvices of kiln-drying under CPR 34. (6/18/52 No. 15) . :• • V ‘ ' . • - , « • • • • ' ' - ■ . ' • ■ • - ' ■ . ' r ' ' * ' « ■ ** ' ♦ - 85 Serv 32:202.19 FILE following 85 Serv 32:202.17 (8-6-52) ' INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Perpetual care of a burial lot—when subject to price regulation Perpetual care of a burial lot, if it is a covenant running with the deed of sale of the lot, is a price or rental of real property and is, therefore, exempt under DPA of 1950, as amended. Section 402(e)(i). On the other hand, if perpetual care is an independent covenant or a covenant in gross or a matter of separate contract, ‘it is subject to CPR 34. (8/28/51 No. 16) 85 Serv 32:202.20 INTERPRETATIONS CPR 84, Sec. 2 COVERAGE Towing service-^incidental to repair of motor vehicle t Service rendered by a company in providing towing service for disabled motor vehicles is not essentially a transportation service, but is merely incidental to the repair of the motor vehicle towed. The towing service, therefore, is subject to CPR 34. 8/21/51 No. 4 FILE following 85 Serv 32:202.20 (8-11-52) 85 Serv 32:202.21 INTERPRETATIONS CPR 34, SEC. 2 COVERAGE Cleaning pipeline refinery storage tanks and salvaging crude oil A company is engaged in the business throughout the oil states of cleaning pipeline refinery storage tanks and processing a by-product of such cleaning (BS&W) in an oil separating plant for the recovery of crude. The company has a permanent plant and three portable plants which are used to fulfill contracts at locations other than at the permanent plant. The company apparently enters into some six different types of contracts for its services. While the price terms of these contracts vary, it appears that these contracts relate to two types of services, namely, either the cleaning of pipeline refinery storage tanks without more or the cleaning of such tanks and the processing of BS&W for the recovery of crude. Contracts for cleaning of tanks only are made on a flat cash basis per tank or for BS&W removed from the tank with or without an additional fixed amount paid by the company to the buyer of the service. Contracts for both cleaning of tanks and recovering crude from BS&W removed from the tanks are made on the basis of the posted field price plus or minus a fixed amount per barrel of recovered crude and sometimes nlus a fixed amount per barrel of BS&W removed paid by the company. The cleaning of oil storage tanks is a service for which ceiling prices can be es¬ tablished under Section 5 of CPR 34. However, when the company sells the combined service of cleaning tanks and recovering crude from the BS&W removed from the tanks, this constitutes a second type of service for which ceiling prices would also be es¬ tablished under Section 5 of CPR 34. It appears from the price terms of the various contracts employed by the company that it sold the same service in the base period at the same time to different purchasers at different prices on an individual nego¬ tiated basis. Under Section 12(c) of CPR 34, each such customer constitutes a separ¬ ate class of purchaser. Although the principal place of business of the company is located within one district of OPS and it merely operates portable equipment outside the district, a filing by the company pursuant to the provisions of Section 18 of CPR 34 with the OPS district office in which the principal place of business is located is not sufficient. If the company both enters into and performs contracts for the cleaning of oil storage tanks outside this OPS district, then it is required to file its ceiling prices with the appropriate OPS district office in accordance with the pro¬ visions of Section 18(b) of CPR 34. (See Section 27(a)(1)) (SS-II-8) ' - I FILE following 85 Serv 32:202.21 (8-22-52) 85 Serv 32:202.23 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Photostatic work The question is posed whether photostatic work is a service or a manufacture. Many companies are engaged in photostatic and precision photostatic copy work. Customers bring the subject matter to them, but the companies supply all necessary material. Photostatic work does not fall within the definition of a manufacturer under section 47, CPR 22; but is considered to be the rendering of a service under CPR 34. GOR 8, Section 1 (a) (2) has no application to companies supplying such photostatic services. (12/28/51 No. 1) 85 Serv 32:202.24 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Parking lot—when operated by a concessionaire for a governmental agency If parking facilities are operated by a concessionaire for a municipality, charges therefor are subject to CPR 34. (2/25/52 No. 19) the FILE following 85 Serv 32:202.24 (8-22-52) 85 Serv 32:202.25 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Brand inspection fees for stockyards—when regulated by Department of Agriculture. Stockyards, if they are not regulated by the Department of Agriculture under the Packers and Stockyards Act, are controlled in respect to their Brand Inspection Fees by CPR 34; if so regulated, such services are exempt! under GOR 14, Section 3(a)(64) (i) • (2/20/52 No. 6) (I . . & " I FILE following 85 Serv 32:202.25 (8-27-52) 85 Serv 32:202.27 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Ambulance and hearse services The question posed is whether ambulance and hearse services are in the category of transportation by a contract carrier excluded from CPR 34 by Section 2(e)(1) and covered by GCPR. These services are not so excluded and are subject to CPR 34. (4/29/52 No. 5) * . FILE following 85 Serv 32:202.27 (8-28-52) 85 Serv 32:202.29 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Dental laboratories--processing and constructing oral prosthetics to specifications of dentists Dental laboratory services are covered by Ceiling Price Regulation 34. The processing and constructing of oral prosthetics when done to the specifications of dentists is considered to constitute services subject to the provisions of CPR 34. (2/25/52 No. 11) . c •- r I ■ - ' FILE following 85 Serv 32:202.29 (9-3-52) 85 Serv 32:202.31 INTERPRETATIONS CPR 34, SEC. 2 COVERAGE Admission charges for college sports event when staged by a profit organization, (see interps following GOR 14, Sec. 3(a)(21), page 85 Serv 61:203a.23. and GOR 14, Sec. 3(a)(109), page 85 Serv 61:203a. 24) FILE following 85 Serv 32:202.31 (9-4-52) 85 Serv 32:202.33 INTERPRETATIONS CPR 34, SEC. 2 COVERAGE Contract to deposit refuse on land The question presented is whether a contract to dump refuse on land is exempt as a real estate transaction or is subject to price regulation. 3 entered into a contract with A for the right to deposit in an excavated portion of certain land owned by A "clay, brickbats, earth, cinders, tile, rock, concrete, stone, rubbish, sand, industrial refuse, and other miscellaneous fill" for which B agreed to pay A a specified amount per cubic yard deposited. B permitted others to deposit debris on this land, and the question is whether B’s charges therefor are subject to price regulation, or whether they are exempt as a price or rental for real property under Section 402(e)(i) of the Defense Production Act of 1950, as amended. The charges are not prices or rentals for real property but charges for the privi¬ lege of depositing refuse on land. The land is not the real property of B, and its agreement with A is not a lease. It is a contract. Even if B had a lease or owned the property, however, its charges for the privilege of depositing refuse on the land would not be prices or rentals for real property. In this connection see GCPR Int. 36, Loose Leaf Service, 42 Reg. 11:203, that royalty payments for mining coal are not a price or rental for real property. (4/24/52 No. 11) « • FILE following 85 Serv 32:202.33 (9-15-52) 85 Serv 32:202. 35 INTERPRETATIONS CPR 34, Sec. 2 COVERAGE Line handling and mooring The Boatmen's Association is composed primarily of individual boatmen who do not perform transportation services, as such, but merely provide line handling and mooring services for deep sea vessels. …