[Aluminum Scrap and Secondary Aluminum Ingot]
[From the U.S. Government Publishing Office, www.gpo.gov]

PRICE SCHEDULE No. 2
(AS AMENDED)
Aluminum Scrap
and
Secondary Aluminum Ingot
OFFICE FOR EMERGENCY MANAGEMENT OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY WASHINGTON, D. C.
Order Ratifying Action Taken Prior to Establish" ment of Office of Price Administration and
Civilian Supply1
Office for Emergency Management
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
1.	All price schedules, instructions, announcements, forms, and notices heretofore issued, promulgated, or adopted, and all committees formed, by the Advisers on Price Stabilization and Consumer Protection, members of the Advisory Commission to the Council of National Defense, or by the Price Stabilization and Consumer Divisions of the Advisory Commission to the Council of National Defense are hereby ratified, adopted, and continued in effect, until modified, terminated, or superseded, as price schedules, instructions, announcements, forms, notices, and committees, of the Office of Price Administration and Civilian Supply and the Administrator thereof.
2.	This ruling is issued under, and in execution of the purposes of, Executive Order No. 8734, issued by the President on April 11, 1941.
Issued this 15th day of April 1941.
Leon Henderson,
Administrator.
1 Federal Register, April 16, 1941, Vol. 6, No. 74.
II
Table of Contents
Page
Price Schedule No. 2, Aluminum Scrap and Secondary Aluminum Ingot- _	1
1302.1	Maximum prices on sales of aluminum scrap by the maker of the scrap_____________________________________________________ 2
1302.2	Maximum prices on sales of aluminum scrap by dealers___	2
1302.3	Maximum prices on sales of secondary aluminum ingot____	3
1302.4	Application for sale of secondary aluminum ingot at prices higher than prices in section 1302.15, Appendix B-------------	3
1302.5	Conversion of scrap on behalf of a maker of the scrap_	4
1302.6	Evasion___________________________________________________ 4
1302.7	Identification and record-keeping requirements____________ 4
1302.8	Reports of dealer’s sales of aluminum scrap to persons not smelters__________________________________________________________ 5
1302.9	Enforcement._______________________________________________ 5
1302.10	Supplemental schedules and reporting requirements_____	5
1302.11	Modification of the Price Schedule________________________ 5
1302.12	Definitions_______________________________________________ 6
(a)	Person-----------------------------------------   6
(b)	Maker of aluminum scrap________________________	6
(c)	Aluminum scrap____________________________________ 6
(d)	Secondary aluminum ingot_________________________ 6
1302.13	Effective date____________________________________________ 6
1302.14	Appendix A, Maximum prices for aluminum scrap_____________ 7
1302.15	Appendix B, Maximum prices for secondary aluminum ingot-	7
Explanatory Statement_____________________________________________________________ 8
Clean and dry scrap_______________________________________________ 8
The dealer’s margin_______________________________________________ 8
Sales in less than carload lots—scrap_____________________________ 8
Sales in less than carload lots—ingot_____________________________ 9
Special secondary aluminum alloys_________________________________ 9
Special processing________________________________________________ 9
Return of scrap by maker to original producer of the material_	10
Permission to carry out firm commitments at prices in excess of the established maximum prices________________________________________ 11
Sale of scrap by smelter______________________________________ 12
Transportation to purchaser’s plant___________________________ 12
Added charge for delayed payment_________________________________ 12
Lots of mixed aluminum scrap_____________________________________ 13
Aluminum foil___________________________________________________  13
Application Forms_____________________________________________________ 14
Application for permission to sell secondary aluminum ingot at prices
higher than the maximum prices established by Price Schedule No. 2________________________________________________________ 14
Application for permission to sell aluminum scrap at prices higher
than the maximum prices established by Price Schedule No. 2__ 17
Press Releases_____________________________________________________ 19
March 24, 1941, Issuance of Price Schedule No. 2______________ 19
May 3, 1941, Amendment of Price Schedule No. 2________________ 21
June 3, 1941, Amendment of Price Schedule No. 2_______________„	22
III
TITLE 32—NATIONAL DEFENSE
Chapter XI—Office of Price Administration and Civilian Supply
Part 1302—Aluminum Scrap and Secondary Aluminum Ingot
PRICE SCHEDULE NO. 2 1
Whereas, the Office of Price Administration and Civilian Supply is charged with functions related to the maintenance of price stability and the prevention of undue price rises and price dislocations ; and
Whereas, producers of virgin aluminum have been directed by the Office of Production Management, Division of Priorities, to give priority to defense orders, thus diminishing the supply of virgin aluminum available to satisfy civilian needs and thereby necessitating increasing resort to aluminum scrap and secondary aluminum ingot; and
Whereas, the increased demand for aluminum scrap and secondary aluminum ingot has exerted inflationary pressure upon the prices thereof, and has in some cases already caused, and threatens to a greater extent to cause, speculative activity, and the withholding of aluminum scrap and secondary aluminum ingot from the market ; and
Whereas, prices of aluminum scrap and secondary aluminum ingot, while normally less than prices of virgin aluminum, have risen to exceed the prices of virgin aluminum, so as to result in price instability and dislocations injurious to the national defense; and
Whereas, in the light of the aforesaid factors the absence of any maximum price standards for aluminum scrap and secondary aluminum ingot makes it difficult and in some cases impossible for the trade voluntarily to cooperate with the Government in maintaining price stability and in preventing excessive and speculative price increases; and
Whereas, the establishment of such standards by the Government is necessary to facilitate such cooperation, and to prevent the
1 Federal Register : March 25, 1941, Vol. 6, No. 58 ; amended May 3, 1941, Vol. 6, No. 87 ; amended June 3, 1941, Vol. 6, No. 107.
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kind of private price policy which, leads to a weakening of the defense effort through disastrous inflation, undue burdens upon the Government, economic dislocations, price spiraling, and profiteering, and the establishment of such standards is otherwise necessary in the public interest and in the interest of national defense ; and
Whereas, on the basis of information secured by independent investigation by this Office and by the Office of Production Management and information furnished through the cooperation of the trade, I find that the maximum prices set forth in section 1302.14, Appendix A, and section 1302.15, Appendix B, attached hereto, constitute reasonable limitations on prices for aluminum scrap and secondary aluminum ingot,
Now Therefore, in order to facilitate cooperation with the Government in maintai/ning price stability and in preventing excessive and speculative price increases injurious to the defense program and to the public interest and welfare, It Is Directed That :
1302.1.	Maanmum prices on sales of almminum scrap by the maker of the scrap.—On and after March 25, 1941, except as provided in section 1302.5 below, regardless of the terms of any commitment theretofore entered into, no maker of aluminum scrap shall sell, offer to sell, deliver, or transfer at a price, aluminum scrap made by him at prices higher than the prices set forth in Column I of section 1302.14, Appendix A, and no person shall buy, or offer to buy, aluminum scrap from the maker of such aluminum scrap at higher prices. Lower prices than those set forth in Column I of section 1302.14, Appendix A, may, however, be charged, demanded, paid or offered.2
1302.2.	'Maximum prices on sales of aluminum scrap by dealers.— On and after March 27,1941, regardless of the terms of any commitment theretofore entered into, any person who is not the maker of the aluminum scrap sold, offered for sale, delivered, or transferred at a price, shall not sell, offer to sell, deliver, or transfer at a price, aluminum scrap at prices higher than the prices set forth in Column II of section 1302.14, Appendix A, and no person shall buy, or offer to buy, aluminum scrap from any person who is not the maker of such aluminum scrap at higher prices ; except that any person not the maker of the aluminum scrap who had purchased aluminum scrap prior to March 24,1941, to meet a previously made firm commitment of sale or delivery of such scrap to another person may, upon application to the Office of Price Administration and Civilian Supply, be permitted to sell, or deliver, and accept payment for, such scrap
2 Sections 1302.1 to 1302.15, inclusive, issued pursuant to the authority contained in Executive Order 8734.
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in accordance with, the terms of such firm commitment. Lower prices than those set forth in Column II of section 1302.14, Appendix A, may, however, be charged, demanded, paid, or offered.
1302.3.	Maximum prices on sales of secondary aluminum ingot.— On and after March 25, 1941, prices for secondary aluminum ingot shall not exceed the prices set forth in section 1302.15, Appendix B, and the maximum price limitations for secondary aluminum ingot set forth in section 1302.15, Appendix B, shall not, on and after March 25, 1941, be exceeded by any person in any purchase, sale, or other transfer at a price, of secondary aluminum ingot whether or not
(a)	made pursuant to a contract of sale or purchase, or other firm commitment, entered into prior to such date; or
(b)	made in the disposition of inventories of aluminum scrap or secondary aluminum ingot held on March 24, 1941;
except that to avoid loss to any person who had acquired such inventory in order to meet firm commitments made prior to March 24, 1941, for the sale of secondary aluminum ingot, the Office of Price Administration and Civilian Supply will, in appropriate cases to be determined on applications made under section 1302.4 hereof, permit the sale and delivery of such secondary aluminum ingot-in accordance with the terms of such firm commitments. Lower prices than the prices set forth in section 1302.15, Appendix B, may, however, be charged, demanded, paid or offered.
1302.4.	Application for sale of secondary aluminum ingot at prices higher than prices in section 1302.15, Appendix B.—Any person desiring permission to sell or deliver secondary aluminum ingot at prices higher than the prices set forth in section 1302.15, Appendix B, may apply therefor in writing, upon forms available upon request made to the Office of Price Administration and Civilian Supply, Washington, D. C. However, no permission shall be granted for the sale or delivery of quantities of secondary aluminum ingot in excess of the lesser of the following two amounts:
(a)	total undelivered firm commitments, made prior to March 24, 1941, for sale of secondary aluminum ingot at prices! higher than those set forth in section 1302.15, Appendix B; or
(b)	total inventories of aluminum scrap and secondary aluminum ingot which were acquired at prices higher than the price limitations contained in this Schedule and which were held on March 24, 1941, by the applicant and, in case any dealer or other person had acquired any such inventory to meet a previously made firm commitment with the applicant for sale or delivery of aluminum scrap to the applicant, by such dealer or other person.
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1302.5.	C owoersion of scrap on behalf of a maker of the. scrap.— A maker of aluminum scrap may sell, deliver, or transfer aluminum scrap to the producer of the material from which the scrap is made; and the producer may purchase and receive such scrap, without regard to the maximum prices set forth in section 1302.14, Appendix A hereof, provided that either—*
(a)	The aluminum scrap so sold, delivered, or transferred consists of extrusion butts or ends, redraw tube ends, or rod turnings of not more than one alloy and such sale, delivery, or transfer is made pursuant to a written contract whereby the purchaser of the scrap agrees to convert the scrap to the type of material from which the scrap was made and to deliver to the maker of the scrap an equivalent amount of the same type of material, and such sale, delivery, or transfer is made in accordance with an established practice existing between the parties prior to March 24, 1941, and at prices which have not been increased since said date, or
(b)	The aluminum scrap so sold, delivered, or transferred consists of unpainted and unlacquered strong alloy scrap in the form of sheet clippings or mutilated sheets, tube ends or mutilated tubing, or extrusion ends or mutilated extrusions, and is made by the aircraft industry and segregated as to alloy and sold, delivered, or transferred to the producer of the material for conversion in accordance with the terms of the letter of the Director of Priorities to members of the aircraft industry under date of March 6, 1941.
1302.6.	Evasion.—The price limitations set forth in this Schedule shall not be evaded whether by direct or indirect methods in connection with a purchase, sale, or transfer at a price, of aluminum scrap or secondary aluminum ingot, or of any other materials, or by way of any service or other charge or discount, premium or other privilege, or by tying-agreement or other trade understanding, or otherwise.
1302.7.	Identification and record-keeping reguir&ments.—Every dealer in, and every maker, smelter, processor, or consumer of, and every other person purchasing or selling aluminum scrap or secondary aluminum ingot shall, until such time as further information is deemed necessary, or appropriate hereunder, keep for inspection by the Office of Price Administration and Civilian Supply, and preserve for a period of not less than one year, complete and accurate records of:
(a)	All purchases and sales of aluminum scrap and secondary aluminum ingot, recording therein the person from or to whom each such purchase or sale was made, the date thereof, the price
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paid or received, and the quantity in pounds and quality by grades of aluminum scrap or secondary aluminum ingot, or both, involved; and
(6)	As of the close of each month the amount in pounds of aluminum scrap and secondary aluminum ingot (i) on hand and (ii) on order.
1302.8.	Reports of dealer’s sales of aluminum scrap to persons not smelters.—Except as herein provided, any person who sells aluminum scrap to any user or further processor of aluminum scrap other than a smelter producing secondary aluminum ingot for sale, shall file a report with the Office of Price Administration and Civilian Supply, Washington, D. C., not later than the tenth day of the month following the month in which such sale is made, stating with respect to any and each such sale :
(a) The name and address of the person to whom the sale was made.
(&) The number of pounds and the grade of aluminum scrap, sold, and
() May a dealer, smelter, or other person, who is not the maker of aluminum scrap, sell either aluminum scrap or secondary aluminum ingot at prices in excess of the established maximum prices to carry out a firm commitment made prior to March 24, 1941 ?
Yes, if permission is granted by the Office of Price Administration and Civilian Supply. In order to secure such permission an application should be prepared and filed in duplicate with this Office on forms which may be secured from this Office. However, the shipment of the aluminum scrap or secondary aluminum ingot should not be delayed until a permit has been issued. Any person who has a firm commitment for the sale of aluiiiinum scrap or secondary aluminum ingot at prices in excess of the maximum prices and expects that he will qualify under the terms of the Price Schedule for permis
2 The situation to which this explanatory paragraph and the corresponding provisions of
Price Schedule No. 2 were intended to apply has largely ceased to exist. The purpose was to enable dealers, smelters, and other persons to avoid loss in the disposition of inventory acquired at high prices prior to the effective date of the Price Schedule. Since such inventory has been almost or entirely disposed of, there will be little or no reason to resort to these provisions in the future.
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sion to carry out the commitment should adopt the following procedure:
(1)	Prepare and file in duplicate an application for a permit with this Office.
(2)	Notify the purchaser that such application has been prepared and filed with this Office.
(3)	Make the shipment on the delivery dates provided in the commitment.
(4)	Hold up settlement until a permit is either issued or denied, or, if the parties so desire, temporarily settle at a price not in excess of the established maximum price but subject to agreement that when and if this Office issues a permit, the purchaser will pay to the seller the remaining amounts due in accordance with the terms of the permit.
9.	Sale of Scrap by Smelter.
May a smelter sell scrap at prices in excess of the established maximum ?
No. Insofar as the smelter resells aluminum scrap which it has purchased in the course of its business, it will be subject to the maximum prices established for dealers’ sales of aluminum scrap. 10. Transportation to Purchaser’s Plant.
May a person selling aluminum scrap or secondary aluminum ingot at the established maximum price add to the price a charge for delivery of the scrap or ingot to the purchaser’s plant ?
Yes. The established maximum prices are prices f. o. b. the point of shipment. Any charge made for a transportation service rendered after the scrap or ingot has left the point of shipment is not included in the established maximum prices. However, if such a charge is greater than customary tariffs for similar transportation service, this Office will assume that the charge results in a price in excess of the established maximum price. Any instance of such a charge, therefore, should be reported to this Office.
In this connection it should be noted that section 1302.7 of the Schedule requires the seller and the purchaser of secondary aluminum ingot to keep records of the prices received or paid for scrap and ingot. These records are intended to protect the seller and purchaser in the event of an inspection by the Office of Price Administration and Civilian Supply. Consequently, they should show separately both the f. o. b. price at the point of shipment and the transportation charge.
11.	Added Charge for Delayed Payment.
May any person who sells aluminum scrap or secondary aluminum ingot at the established maximum price add a further charge for delayed payment by the purchaser?
12
Yes, provided the added charge represents a reasonable per annum interest charge and not an increase in price above the maximum. No charge for delayed payment is allowed, therefore, which exceeds a reasonable per annum interest rate upon the selling price commencing on the date of delivery. Any interest rate higher than current per annum rates would place the contract price under suspicion.
12.	Lots of Mixed Aluminum Scrap.
What is the maximum price at which a maker may sell aluminum scrap borings if the borings include both No. 12 type and other types in unknown amounts?
Nine and one-half cents per pound. The Price Schedule establishes a 9^-cent maximum price for the sale by a maker of No. 12 type borings, a 10-cent maximum for the sale by a maker of borings other than No. 12. Consequently, in case the No. 12 type borings are mixed in unknown quantities with other types of borings, no price higher than the 9% cents per pound maximum may be paid for the mixed lot. A price higher than 9% cents per pound is only permitted in payment for borings other than No. 12 type borings. In order to sell at such higher price, the number of pounds of such borings must be known.
The same rule will apply to any mixture of different grades of aluminum scrap if the quantities of the different grades are not known. The established maximum price for that grade in the mixture which has the lowest maximum price will be the maximum price for the entire mixed lot.
13.	Aluminum Foil.
Is aluminum foil and light gauge aluminum sheet subject to the established maximum prices?
Yes, unless such material does not exceed 0.006 of an inch in thickness. It has been provided by an amendment in the form of a special note to section 1302.14, Appendix A, of the Price Schedule that aluminum foil and light gauge sheet which does not exceed 0.006 of an inch in thickness is not subject to the maximum prices established by the Price Schedule.
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Application Forms Pursuant to Sections 1302.2, 1302.3, and 1302.4 of Price Schedule No. 2
Office for Emergency Management
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
WASHINGTON, D. O.
102 : 2	APPLICATION OF
(Name of applicant)
(Address)
Fob Permission To Sell Secondary Aluminum Ingot at Prices Higher Than the Maximum Prices Established by Price Schedule No. 2
introductory
The applicant should file a sworn original and one copy of each application form and duplicates of each Appendix with the Office for Emergency Management, Office of Price Administration and Civilian Supply, Washington, D. C.
Sections 1302.3 and 1302.4 of Price Schedule No. 2 set forth the conditions under which permission will be granted for the sale and delivery of secondary aluminum ingot at prices higher than the established maximum prices. These sections should be read carefully by the applicant.
The applicant should furnish information in the Appendices to the application form relevant in determining whether the conditions set forth in sections 1302.3 and 1302.4 of Price Schedule No. 2 have been met. The Appendices should be prepared only after reading the Instruction and Explanation herein.
Application is hereby made pursuant to sections 1302.3 and 1302.4 of Price Schedule No. 2 for permission to sell and deliver secondary aluminum ingot in accordance with the terms of the firm commitments described in Appendix A, attached hereto; and to that end the applicant affirms:
A.	That this application is filed for the purpose of enabling the applicant, by completing sales of secondary aluminum ingot according to the terms of the firm commitments described in Appendix A, to avoid loss in the disposition of inventories of aluminum scrap and secondary aluminum ingot on hand and on order on March 24, 1941; and
B.	That the firm commitments described in Appendix A were made prior to March 24, 1941, and that deliveries thereon have not been made, to the extent indicated in Appendix A; and
C.	That the applicant did not enter into any of the firm commitments described in Appendix A in order to dispose of inventory of aluminum scrap or secondary aluminum ingot on hand or on order before such firm commitment was negotiated by the applicant; and
D.	That, in order to meet the firm commitments described in Appendix A, the applicant has, in the manner and to the extent indicated in Appendix B, acquired aluminum scrap and secondary aluminum ingot at prices higher than the maximum prices set forth in Price Schedule No. 2 ; and
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E.	That, in order to meet the firm commitments described in Appendix A, the applicant had outstanding on March 24, 1941, firm orders for the purchase of aluminum scrap as described in Appendix C, attached hereto, and that the applicant has now been advised that, as of March 24, 1941, the selling parties to such firm orders had acted in reliance upon such firm orders by acquiring aluminum scrap in the amounts indicated in Appendix C at prices higher than the maximum prices set forth in Price Schedule No. 2 ; and
F.	That, as of March 24, 1941, the applicant had either on hand, as indicated in Appendix B, or on partially fulfilled firm orders, as indicated in Appendix C, aluminum scrap and secondary aluminum ingot in amounts sufficient to complete delivery on the commitments set forth in Appendix A; and
G.	That the information contained in this application and in the Appendices attached; hereto is complete and accurate to the best knowledge of the applicant.
The applicant understands and agrees that any permission granted pursuant to this Application to sell at prices in excess of those established by Price Schedule No. 2 may be revoked at any time, in whole or in part, upon it appearing that the facts are not as set forth in this Application and the Appendices attached hereto or that, for any reason, applicant is not entitled under the terms of said Price Schedule No. 2, to make such sales.
Applicant
By_____________________________________
Title of office
Dated this_________________day of__________________, 1941.
State of_________________________,
County of---------------------, ss:
On this________________day of____________________ 1941, before me personally appeared
____________________________________________________________ who being first duly sworn, did depose and say that he is the_________________of the_______________________________; that he
executed the foregoing Application on behalf of said--------------------and
was duly authorized so to do ; and that he has knowledge of the facts and statements set forth in said Application and in the Appendices thereto and that they are accurate and complete to the best of his knowledge, information, and belief.
[seal]	___________________________________
Notary Public in and for the County of______________________ State of--------------
My Commission expires_____________________________
instructions and explanation
1.	Appendix A should contain a description of all the firm commitments which the applicant is seeking permission to complete. This description must be sufficiently complete to permit absolute identification of each such firm commitment and every term thereof with respect to which permission is sought. The permission granted pursuant to this application will cover only sale or delivery in accordance with the terms of the firm commitments as such terms are described in Appendix A.
The applicant, therefore, should include in Appendix A at least the following information with respect to each such firm commitment:
(a)	Name and address of the purchaser.
(b)	Date on which the firm commitment was made.
(c)	The form of the commitment, i. e., oral, exchange of letters, order form, signed agreement, etc.
15
(d)	Grades and the number of pounds of each grade of secondary aluminum ingot committed giving (1) grades and number of pounds of each grade already delivered; (2) grades and number of pounds of each grade remaining to be delivered after March 24, 1941; (3) delivery date or dates; and (4) selling price per pound of each grade.
If the commitment is in the form of a written agreement, a copy of the agreement should be made part of Appendix A and submission thereof may in such event be sufficient to supply the required information.
The applicant should not include in Appendix A firm commitments which in the aggregate call for deliveries of secondary aluminum ingot in an amount prohibited under section 1302.4 of the Schedule. Under section 1302.4 no permission will be granted for sales or deliveries of secondary aluminum ingot in quantities greater than the quantity represented by inventories of aluminum scrap and secondary aluminum ingot acquired at prices higher than the Scheduled price limitations and held on March 24, 1941, by (a) the applicant and (&) any dealer or other person who had acquired such inventory to meet a previously made firm commitment for sale or delivery of such scrap to the applicant.
2.	Appendix B should contain any evidence the applicant can offer to establish that:
(a) The applicant secured the firm commitments described in Appendix A in advance of acquiring the aluminum scrap or secondary aluminum ingot acquired to carry out such commitments, and
(&) The prices paid by the applicant for inventories later acquired to fulfill the commitments described in Appendix A were higher than the Scheduled price limitations.
3.	Appendix C should contain information with respect to inventories acquired and held by dealers for the applicant, and need only be prepared if the applicant is resting its application, in part, upon deliveries of such inventories.
Under Price Schedule No. 2 a dealer who has acquired, prior to March 24, 1941, aluminum scrap at prices higher than the Scheduled price limitations and for the purpose of meeting firm commitments made prior to March 24, 1941, for the sale of aluminum scrap to a further processor may secure permission to sell or deliver such scrap to the processor at the committed prices. Consequently if the applicant had prior to March 24, 1941, placed a firm order to purchase aluminum scrap from a dealer for the purposes of meeting commitments described in Appendix A, and if the dealer upon getting such firm order had thereafter purchased aluminum scrap at prices higher than the Scheduled price limitations, the dealer may be permitted to complete delivery of such aluminum scrap to the applicant in accordance with the terms of the applicant’s firm order and the applicant to devote such inventory to meeting its commitment, of sale of secondary aluminum ingot at the committed prices.
In such a case, Appendix C should set forth the following information and any further information deemed appropriate by the applicant or its dealer:
(a)	With respect to each such firm purchase order of the applicant: The name and address of the seller, the date on which the commitment was made, the form of the commitment, the total aluminum scrap committed to be sold to the applicant, showing the grade or grades, the selling price of each grade, and the delivery date or dates and the quantities to be delivered after March 27, 1941.1
1 See section 1302.2 of Price Schedule No. 2 wherein the dealer’s selling price limitations on aluminum scrap are made effective March 27,1941.
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(6)	With respect to each seller's acquisitions of aluminum scrap made to meet such purchase orders: On advice of the seller, information to establish that the seller acquired aluminum scrap prior to March 25, 1941, to meet such purchase order at prices higher than the Scheduled price limitations and the approximate quantities so acquired and not delivered prior to March 27, 1941.
4.	Definitions.—In this application form the following terms shall mean:
(a)	“Firm commitment” means any contract for sale, for delivery, or for transfer at a price, which imposes a binding obligation on a party thereto to sell, deliver, or transfer at a price.
(&)	“Secondary aluminum ingot” means the kinds and grades of secondary aluminum ingot referred to in section 1302.15, Appendix B, of Price Schedule No. 2.
(c)	“Aluminum scrap” means the kinds and grades of aluminum scrap referred to in section 1302.14, Appendix A, of Price Schedule No. 2.
(d)	“Grades” of secondary aluminum ingot and aluminum scrap means the grades of secondary aluminum ingot and aluminum scrap referred to in sections 1302.14, Appendix A, and 1302.15, Appendix B, of Price Schedule No. 2.
Office for Emergency Management
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
WASHINGTON, D. C.
102:3
/	APPLICATION OF
(Name of applicant)
(Address)
Fob Permission to Sell Aluminum Scrap at Prices Higher Than the Maximum Prices Established by Price Schedule No. 2
INTRODUCTORY
The applicant should file a sworn original and one copy of each application, and duplicates of each Appendix thereto, with the Office for Emergency Management, Office of Price Administration and Civilian Supply.
Section 1302.2 of Price Schedule No. 2 sets forth the conditions under which permission will be granted for the sale and delivery of aluminum scrap at prices higher than the established maximum prices. This section should be read carefully by the applicant.
The applicant should furnish in the Appendices to the application such information as may be relevant in determining whether the conditions set forth in section 1302.2 of Price Schedule No? 2 have been met. The Appendices should be prepared only after reading the Instructions and Explanation herein.
Application is hereby made pursuant to section 1302.2 of Price Schedule No. 2 for permission to sell and deliver aluminum scrap in accordance with the terms of the firm commitments described in Appendix A, attached hereto, and to that end the applicant affirms :
A.	That this application is filed for the purpose of enabling the applicant, by completing sales of aluminum scrap according to the terms of the firm commit
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ments described in Appendix A, to avoid loss in the disposition of inventories of aluminum scrap on hand on March 24,1941, and
B.	That the firm commitments described in Appendix A were made prior to March 24, 1941, and that deliveries thereon have not been made, except to the extent indicated in Appendix A; and
C.	That the applicant did not enter into any of the firm commitments described in Appendix A in order to dispose of inventory of aluminum scrap on hand or on order before such firm commitments was negotiated by the applicant; and
D.	That, in order to meet the firm commitments described in Appendix A, the applicant has, in the manner and to the extent indicated in Appendix B, acquired aluminum scrap at prices higher than the maximum prices set forth in Price Schedule No. 2; and
E.	That, as of March 24, 1941, the applicant had on hand, as indicated in Appendix B, aluminum scrap in amounts sufficient to complete delivery on the commitments set forth in Appendix A; and
F.	That the information contained in this application and in the Appendices attached hereto is complete and accurate to the best knowledge of the applicant.
The applicant understands and agrees that any permission granted pursuant to this Application to sell at prices in excess of those established by Price Schedule No. 2 may be revoked at any time, in whole or in part, upon it appearing that the facts are not as set forth in this Application and the Appendices attached hereto or that, for any reason, applicant is not entitled under the terms of said Price Schedule No. 2, to make such sales.
Applicant
By___________________________________1___
Title of office
Dated this____________________day of__________________, 1941.
State of_____________________________
County of______________________, ss.
On this___________________day of__________________, 1941, before me personally appeared
____________________________, who being first duly sworn, did depose and say that he is the______________of the____________________________________; that he
executed the foregoing Application on behalf of said____________________and
was duly authorized so to do ; and that he has knowledge of the facts and statements set forth in said Application and in the Appendices thereto and that they are accurate and complete to the best of his knowledge, information, and belief.
[seal]	___________________________________
Notary Public in and for the County of_______________________, State of_____________
My Commission expires________________________________
INSTRUCTIONS AND EXPLANATION
1.	Appendix A should contain a description of all the firm commitments which the applicant is seeking permission to complete. This description must be sufficiently complete to permit absolute identification of each such firm commitment and every relevant term thereof with respect to which permission is sought. The permission granted pursuant to this application will cover only sale or delivery in accordance with the ter.ms of the firm commitments as such terms are described in Appendix A.
The applicant, therefore, should include in Appendix A at least the following information with respect to each such firm commitment :
(a) Name and address of the purchaser.
(&)	Date on which the firm commitment was made.
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(c)	The form of the commitment, i. e., oral, exchange of letters, order form, signed agreement, etc.
(d)	Grades and the number of pounds of each grade of aluminum scrap committed giving (1) grades and number of pounds of each grade already delivered; (2) grades and number of pounds of each grade remaining to be delivered after March 24, 1941; (3) delivery date or dates; and (4) selling price per pound of each grade.
If the commitment is in the form of a written agreement, a copy of the agreement should be made part of Appendix A and submission thereof may be sufficient to supply the required information.
The applicant should not include in Appendix A firm commitments which in the aggregate call for deliveries of aluminum scrap in quantities greater than the quantity represented by inventories of aluminum scrap acquired by the applicant at prices higher than the Scheduled price limitations and held by it on March 24, 1941. Permission will not be granted under section 1302.2 of the Schedule in excess of this amount.
2.	Appendix B should contain the best evidence the applicant can produce to establish that:
(a)	The applicant secured the firm commitments described in Appendix A in advance of acquiring the aluminum scrap required to carry out such commitments, and
(6)	The prices paid by the applicant for inventories later acquired to fulfill the commitments described in Appendix A were higher than the Scheduled price limitations.
The applicant should, wherever possible, identify by names of sellers, dates of purchase, grades, quantities, prices, etc., the particular aluminum scrap purchased to meet each respective firm commitment described in Appendix A. It may also be possible to identify such scrap as some particular part or lot of present inventories. Information should be submitted in such form and detail as is practicable in the individual case.
3.	Definitions.—
(a) “Firm commitment” means any binding obligation to sell, deliver, or transfer at a fixed price.
(&) “Aluminum scrap” and “grades” of aluminum scrap mean the kinds and grades of aluminum scrap referred to in section 1302.14, Appendix A, of Price Schedule No. 2.
Press Release
Issuance of Price Schedule No. 2
March	19^1—PM 186
A Price Schedule setting ceiling prices for aluminum scrap and secondary aluminum, pegged to current prices for virgin aluminum, was issued today by Leon Henderson, Director of the Price Stabilization Division, National Defense Advisory Commission.
High price levels attained by aluminum scrap and secondary aluminum during the past month made this action necessary, Mr. Henderson explained.
“The price schedule will be fully enforced,” he said. “The powers of the Government to place compulsory orders, to condemn or requisi
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tion properties, to issue priorities and to use other powers to carry out the defense program will be exerted to the utmost against any person whom we find to be disregarding these selling prices.”
Prices of aluminum scrap and secondary aluminum have recently been subjected to serious inflationary pressures, Mr. Henderson asserted, both because of the failure of the sources of virgin aluminum to meet current demand—especially the demand of fabricators making items for civilian needs—and because of the recent issuance of a priorities order restricting the use of virgin aluminum to defense purposes.
Under normal conditions, he continued, prices for secondary aluminum do not exceed prices for virgin aluminum. Recently, however, the Price Stabilization Division has received reports of sales of aluminum scrap reaching prices as high as 32 cents a pound—almost double the price of the virgin metal.
“Such prices are not required to draw out aluminum scrap,” Mr. Henderson said. “They are merely the results of a speculative demand which has built up inflationary prices. There are supplies of scrap, and these supplies will be tapped at reasonable prices, once it is understood that the Government will not tolerate prices above a fair maximum.”
The new Price Schedule establishes two ceiling prices for aluminum scrap. The lower ceiling applies to the first sale of aluminum scrap from the maker to any other person. The higher ceiling applies to any sale of aluminum scrap thereafter by any dealer or other person to any smelter, foundryman, fabricator, or other dealer. The two ceilings are fixed f. o. b. the point of shipment and will allow the dealer a margin of cents per pound on clippings, borings and turnings, and 1 cent per pound on other types of aluminum scrap.
The maximum prices for secondary aluminum ingot are applicable to any sale or purchase of secondary aluminum ingot by any person. Like the scrap schedules, these prices are made f. o. b. the point of shipment. They leave a spread of 3 to 4 cents per pound for the processors’ costs and profits.
“These ceiling prices,” Mr. Henderson stated, “will give ample allowance for reasonable profit to both dealers and smelters. However, recent demand for secondary aluminum indicates that there may be some effort on the part of manufacturers and fabricators to purchase scrap direct from dealers,? thus circumventing the smelter. To forestall this movement, the Schedule requires dealers to report any sales which they make to any person other than a smelter.”
The new Schedule will become immediately effective in a market of already inflated prices. Consequently, a method is provided by which smelters and dealers who have acquired inventories at prices above the new maximum prices to meet previously arranged firm commitments for sales above ceiling prices may secure an exception from
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the Price Schedules in order to carry out these firm commitments on the original terms. However, it should be noted that this exception will not be permitted beyond the amount of inventories already acquired either by the smelter or his dealer to carry out the commitment. With this one exception the maximum prices set forth in the new Schedule become immediately and absolutely effective regardless of any preexisting contracts.
This Schedule is the second to be issued by the Price Stabilization Division. The first Schedule, issued February 17, established ceiling prices for second-hand machine tools, relating the ceiling prices to the prices of equivalent new machine tools. “To date,” Mr. Henderson stated, “reports seem to show 100 percent compliance.”
Mr. Henderson added that schedules are imminent in iron and steel scrap as well as zinc scrap, and that apparently unwarranted price increases in various other industries have been reported during the past few days.
“Should these movements continue, price ceilings will have to be established in these industries,” he said. “We hope that this action will not be necessary, but if it is, we are ready to enforce reasonable price limits.”
Press Release
Amendment of Price Schedule No. 2
May 3,1951—PM 359
Amendments to Price Schedule No. 2, which established maximum prices for aluminum scrap and secondary aluminum ingot, were announced today by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply. The amendments become effective May 5, 1941. An explanatory statement, answering the most common inquiries as to interpretation of the Schedule, was also released.
“These amendments,” Mr. Henderson explained, “have been adopted in order to give effect to customary trade practices and to forestall attempts to use the price schedule as an excuse for charging the maximum prices for aluminum scrap which does not meet maximum standards. We have tried to make it clear that the established prices of scrap are on the basis of clean and dry scrap of the highest quality and are for carload lots. Appropriate differentials must be observed where the material does not meet these standards.”
The following are the principal changes made in the Price Schedule by the amendments:
(1)	The maximum price at which a maker of the scrap may sell old aluminum sheet and aluminum utensils is lowered from 120 to 110 per pound. No other change is made in the maximum prices of any grades of aluminum scrap or secondary aluminum ingot.
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(2)	It is emphasized that all maximum scrap prices are for clean and dry scrap and that material not meeting these standards should be sold at prices reduced below the maximum prices in proportion to the percentage of dirt and moisture.
(3)	There has been eliminated the provision of section 1302.1 of the Schedule which allowed makers of scrap to request permission from Office of Price Administration and Civilian Supply to sell directly to smelters at prices as high as the established dealers’ prices where such sales were customarily made prior to issuance of the Price Schedule. This provision had caused some makers to expect exemption in cases in which the smelter performed functions of a dealer. In lieu of this provision, there has been added a new section 1302.5, exempting from the Schedule customary sales of extrusion butts and ends, sheet clippings or rod turnings of not more than one alloy, and pure clips, where such sales are made by the maker of the scrap to the producer of the material from which the scrap is made and pursuant to a written contract for the reconversion of the scrap into like material and for sale of an equivalent amount of like material to the-maker. The contract prices must not, however, have been increased since March 24, 1941.
(4)	Aluminum scrap which is delivered in less than carload lots must be sold at prices % cent under the established maximum prices set forth in section 1302.14, Appendix A, of the Price Schedule.
(5)	The maximum prices established by section 1302.15, Appendix B, of the Price Schedule for secondary aluminum ingot are explicitly stated to be for quantities of 30,000 pounds or more. An additional % cent per pound may be charged for quantities of 10,000 to 30,000 pounds, an additional cent for quantities of 1,000 to 10,000 pounds, and an additional 1 cent for quantities under 1,000 pounds.
Special attention is called, in the explanatory statement released with the amended Price Schedule, to the procedure set up for consideration of applications for exceptions from the schedule. Dealers and smelters which have acquired high-priced inventory before March 24, 1941, may, upon application to the OP ACS, be granted permission to carry out commitments entered into prior to that date at prices in excess of the established maximum prices to the extent necessary to avoid loss on such inventory. Exceptions may also be granted so as to permit the charging of prices higher than those scheduled for special alloys and special processing. Requests for such exceptions should be made by presenting to Office of Price Administration and Civilian Supply a full and verified statement of the need for such exemption and the facts upon which it is to be based. In case of a special alloy, this statement would ordinarily include an analysis of the alloy.
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Press Release
Amendment of Price Schedule No. 2
Jw 3, 1941—PM 497
Further amendments to Price Schedule No. 2 designed to simplify administration of maximum prices for aluminum scrap and secondary aluminum ingot were issued today by Leon Henderson, Administrator, Office of Price Administration and Civilian Supply.
Principal changes, effective June 3, include:
(1)	Special secondary aluminum alloys have been removed from that part of the schedule relating to secondary aluminum ingot. The types of aluminum alloy ingot now covered by the schedule include all silicon alloys, piston alloys, and No. 12 alloy. However, the usual differentials based upon market prices of the ingredients and the expenses of manufacturing are to be observed.
(2)	Price regulation has also been removed from aluminum scrap of designated grades produced by the aircraft industry, segregated as to alloy, and returned to the supplier of the original material for reconversion into similar material in accordance with instructions of the Director of Priorities.
(3)	Quantity differentials for aluminum scrap have been removed but such differentials continue on secondary aluminum ingot sold in less that 30,000-pound lots.
(4)	A special note has been added to section 1302.14, Appendix A, removing from the schedule aluminum foil and light-gauge sheet which does not exceed 0.006 of an inch in thickness.
Removal of special aluminum alloys from the schedule of maximum prices gives the trade wider discretion in establishing fair differentials for such ingots. However, producers and dealers are expected to keep prices of such products in line with the maximum prices established for the more standardized grades. It is expected that customary differentials will be maintained. If this is not done voluntarily, such differentials will have to be established by regulation.
U. S. GOVERNMENT PRINTING OFFICE« 1EA1
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