IU I I II \| REGISTER VOLUME 19 ^ NUMBER 177

Washington, Saturday, September 11, 1954

TITLE 3— THE PRESIDENT graph or by any reenactment thereof as herein stated. CONTENTS EXECUTIVE ORDER 10558 S ec. 2. The Director of the Bureau of THE PRESIDENT Amendment of E xecutive Order No. the Budget shall from time to time re­ Executive Orders Page 10154,1 Designating Certain Officers port to the President concerning activi­ of the P ost Offic e Department to ties carried on by executive agencies and Amendment of Executive Order Act as P ostmaster General offices with funds allocated hereunder 10154, designating certain offi­ cers of the Post Office Depart­ By virtue of the authority vested in and shall, consonant with law, exercise such direction and control with respect ment to act as Postmaster me by section 179 of the Revised Statutes General______5879 of the United States (5 U. S. C. 6), and to the said activities as he shall deem appropriate. Providing for administration of as President of the United States, it is the President’s Management ordered that Executive Order No. 10154 Dwight D. E isenhower Improvement Appropriation... 5879 of August 22,1950, entitled “Designation T he W hite House, of Certain Officers of the Post Office Septem ber 8, 1954. EXECUTIVE AGENCIES Department To Act as Postmaster Gen­ [F. R. Doc. 54-7180; Filed, Sept. 9, 1954; Agricultural Marketing Service eral”, be, and it is hereby, amended by 2:34 p. m.] • adding to the list of officers contained Proposed rule making: therein at the end thereof the following: Milk handling in the Appa­ lachian marketing area_____ 5900 “5. Assistant Postmaster General in TITLE 5— ADMINISTRATIVE charge of the Bureau of Personnel.” Rules and regulations: PERSONNEL Lemons grown in California and Dwight D. E isenhower Arizona; limitation of ship­ Chapter I— Civil Service Commission T he W h ite House, ments------5883 September 8, 1954. P art 6— E xceptions F rom the Oranges, Valencia, grown in Competitive S ervice Arizona and designated part [F. R. DOC. 54-7179; Filed, Sept. 9, 1954; of California; limitation of 2:34 p. m.J DEPARTMENT OF THE ARMY handling____ .______5882 Effective upon publication in the F ed­ Agriculture Department eral R egister, paragraphs (a) (2), (5) Delegation of authority to Secre­ EXECUTIVE ORDER 10559 and (6), (b) (1), (2), (3), and (4), (d) tary with respect to certain Cl). (j) (1), (1) (1), (m) (1) of §6.105, responsibilities (see Federal P roviding for the Administration of and paragraph (a) of § 6.204 are re­ Civil Defense Administration). the P resident’s M anagement Improve­ voked, and paragraphs (e) (1) and (g) See Agricultural Marketing Serv­ ment Appropriation (1) of § 6.105 are amended as set out ice; Commodity Stabilization below. Service. By virtue of the authority vested in me by section 301 of title 3 of the United § 6.105 Department of the Army. Air Force Department States Code, and as President of the * * * Armed Services Procurement Reg­ United States, it is ordered as follows: (e) Engineer Department. (1) Land ulations; miscellaneous amend­ appraisers employed on a temporary ments (see Defense Depart­ Section 1. The Director of the Bu­ ment) . reau of the Budget is hereby authorized basis for a period not to exceed one year and empowered to exercise the authority on special projects where knowledge of Army Department vested in the President by the paragraph local values or conditions or other spe­ Armed Services Procurement Reg­ appearing under the heading “Expenses cialized qualifications not possessed by ulations; miscellaneous amend­ of Management Improvement” in Title appraisers regularly employed by the ments (see Defense Depart­ I of the Independent Offices Appropria­ Department are required for successful ment) . tion Act, 1955, 68 Stat. 274, or by any results. Civil Aeronautics Administra­ reenactment of the provisions of such * * * * * tion paragraph in the same or in a different (g) Special Services Division. (1)Rules and regulations: amount of funds, to allocate to any Until December 31, 1956, positions paid Minimum en route IFR alti­ agency or office of the executive branch tudes; miscellaneous amend­ (including the Bureau of the Budget) from the appropriation “Welfare of En­ listed Men,” which entail responsibility ments______5884 funds appropriated by the said para- Security control of air traffic; for the direction or supervision of volun- designation 'of California 115 F. R. 5653; 3 CFR, 1950 Supp., p. 115. (Continued on p. 5881) (domestic), ADIZ______5885 5879 5880 RULES AND REGULATIONS

CONTENTS— Continued CONTENTS— Continued Civil Aeronautics Board PaSe Federal Communications Com- Pag« FEDERALljÿREGISTER Notices: mission eOwrtO*‘»a* «.K City of Sioux Palls, S. Dak.; Notices: postponement of prehearing Regional Managers and District conference______5919 Published daily, except Sundays, Mondays, Field office areas; statements and days following official Federal holidays, Proposed rule making: of organization,% delegations by the Federal Register Division, National Uniform system of accounts and of authority and public infor­ Archives and Records Service, General Serv­ reports for certified air car­ mation______5921 ices Administration, pursuant to the au­ riers______1 5916 Van Curler Broadcasting Corp. thority contained in the Federal Register Rules and regulations: (W TRI); memorandum opin­ Act, approved July 26, 1935 (49 Stat. 500, as Irregular air carrier and off- ion and order designating ap­ amended; 44 U. S. C., ch. 8B), under regula­ route rules; airman require­ tions prescribed by the Administrative Com­ plication for hearing______5919 mittee of the Federal Register, approved by ments______5883 Proposed rule making: the President. Distribution is made only by Civil Service Commission Amateur radio service; tech­ the Superintendent of Documents, Govern­ nician class operator privi­ ment Printing Office, Washington 25, D. C. Rules and regulations: leges------5917 The regulatory material appearing herein Competitive service, exceptions Television broadcast stations; is keyed to the Code of Federal Regulations, from: table of assignments______5916 which is published, under 50 titles, pursuant Air Force Department (2 Rules and regulations: to section 11 of the Federal Register Act, as documents)-______5881, 5882 amended August 5, 1953. Amateur radio service; frequen­ Army Department___ _ 5879 cies and types of emission; The F ed era l R e g is t e r will be furnished by Farm Credit Administration. 5881 mail to subscribers, free of postage, for $1.50 modulation of carrier wave— 5899 per month or $15.00 per year, payable in Formal education requirements Domestic Fixed Public Service; advance. The charge for individual copies for appointment to certain operational fixed stations and (minimum 15tf) varies in proportion to the scientific, technical, and pro­ fixed stations______5898 size of the issue. Remit check or money fessional positions; Cotton Frequency allocations and radio order, made payable to the Superintendent Technologist______5882 of Documents, directly to the Government treaty matters; general rules Printing Office, Washington 25, D. C. Commerce Department and regulations; frequency There are no restrictions oh the republica- Delegation of authority to Secre­ allocations______5891 tion of material appearing in the, F ed e r a l tary with respect to certain re­ Industrial, scientific and medi­ R e g is t e r . sponsibilities (see Federal Civil cal service; short wave epila­ Defense Administration). tion equipment______— 5899 Delegation of authority to Secre­ Radio broadcast serv ices; CFR SUPPLEMENTS tary with respect to procurement broadcasts by candidates for contracts for experimental, de­ public office.______:__ 5894 (For use during 1954) velopmental, or research pur­ Stations on land and shipboard poses by Bureau of Standards in the maritime services: The following Supplements are now for executive agencies; revoca­ Amateur radio service; Re­ available: tion (.see General Services Ad­ gional Managers and Dis­ ministration) . trict Field office areas____ 5898 Title 7: Parts 210-899 ($2.25) See Civil Aeronautics Administra­ Use of telephony______5897 Title 19, Revised 1953 ($5.00) tion. Federal Power Commission Commodity Stabilization Service Notices : Title 32A, Revised Dec. 31,1953 Proposed rule making: Transcontinental Gas Pipe Line ($1.50) Corp.; order fixing date of Cotton, Upland, 1955 crop; de­ oral argument. ______5922 terminations to be made with Title 46: Part 146 to end ($6.50) respect to national marketing General Services Administration Previously announced: Title 3, 1953 Supp. quota, national, State, and Notices: ($1.50); Titles 4-5 ($0.60); Title 6 county acreage allotments, Palm oil held in the national ($2.00); Title 7: Parts 1-209, Revised and formulation of regula­ stock pile; disposition______5922 1953 ($7.75); Part 900 to end ($1.25); tions pertaining to farm acre­ Secretary of Commerce; delega- Title 8 ($0.35); Title 9 ($0.50); Titles 10- age allotments______5915 tion of authority with respect 13 ($0.50); Title 14: Parts 1-399 ($1.25); Defense Department to procurement contracts for Part 400 to end ($0.50); Title 15 ($1.25); experimental, developmental, Title 16 ($1.00); Title 17 ($0.50); Title Rules and regulations: or research purposes by 18 ($0.45); Title 20 ($0.70); Title 21 Armed Services Procurement National Bureau of Standards ($1.50); Titles 22-23 ($1.00); Title 24 Regulations: for executive agencies; revo­ ($0.75); Title 25 ($0.45); Title 26: Parts Contract clauses and forms; cation______<______5923 1-79, Revised 1953 ($7.75); Parts 80- fixed price supply con­ 169 ($0.50); Parts 170-182 ($0.75); Parts tracts; required clauses__ 5887 Home Loan Bank Board 183-299, Revised 1953 ($5.50); Part 300 Coordinated procurement__ 5885 Proposed rule making: to end, and Title 27 ($1.00); Titles 28—29 Federal, State and local Charter and bylaws; operations; ($1.25); Titles 30-31 ($1.00); Title 32: taxes; miscellaneous action on proposal to liberal­ Parts 1-699 ($1.75); Part 700 to end ize bonus provisions______5917 ($2.25); Title 33 ($1.25); Titles 35-37 amendments______5890 ($0.70); Title 38 ($2.00); Title 39 Patents and copyrights; mis­ Housing and Home Finance ($2.00); Titles 40-42 ($0.50); Title 43 cellaneous amendments__ 5889 Agency ($1.75); Titles 44-45 ($0.75); Title 46: Termination of contracts; Delegation of authority to Admin­ Parts 1-145 ($0.35); Titles 47-48, Re­ miscellaneous a m e n d ­ istrator with respect to cer­ vised 1953 ($7.75); Title 49: Parts 1-70 ments______5887 tain responsibilities (see Federal ($0.60); Parts 71-90 ($0.65); Parts 91- Civil Defense Administration). 164 ($0.45); Part 165 to end ($0.60); Federal Civil Defense Admin­ Title 50 ($0.55) istration See Home Loan Bank Board. Notices: Interior Department Order from Secretary of Agriculture et al.; Notices: Superintendent of Documents, Government delegation of authority with Bureau of Land Management; Printing Office, Washington 25, D. C. respect to certain respon­ sites for recreational or any sibilities______5921 public purpose______5919 Saturday, September 11, 1954 FEDERAL REGISTER 5881 CONTENTS— Continued CONTENTS— Continued (R. S. 1753, sec. 2, 22 Stat. 403 ; 5 U. S. C. 631, 633; E. O. 10440, 18 F. R. 1823, 3 CFR, 1953 Supp.) Interior Department— Con. PaS® Treasury Department Pag® See also Land Management Bu­ Notices: United S tates Civil S erv­ reau; Reclamation Bureau. Acceptable reinsuring compa­ ice Commission, Interstate Commerce Commis­ nies on Federal bonds: [seal] W m . C. Hu ll, London Assurance Co______5919 Executive Assistant. sion Marine Insurance Co., Ltd_5919 Notices : [F. R. Doc. 54-7142; Filed, Sept. 10, 1954; 8:50 a. m.] Applications for relief : CODIFICATION GUIDE Citrus fruits from Florida to points in southwestern and A numerical list of the parts of the Code western trunk-line terri­ of Federal Regulations affected by documents tory------5924 published in this issue. Proposed rules, as P art 6— E xceptions F rom the opposed to final actions, are identified' as Competitive S ervice Fiberboard boxes from: 6UCh. Battle Creek and Kalama­ DEPARTMENT OP THE AIR FORCE zoo, Mich., and Rittman, Title 3 Page Ohio, to Memphis, Tenn_ 5923 Chapter II (Executive orders): Effective upon publication in the Middletown, Ohio, to Ala­ 10154 (amended by EO 10558) — 5879 F ederal R egister, paragraph (c) (1) of bama, Louisiana, Tennes- 10558 ______5879 § 6.107 is revoked, paragraphs (a) (2) see and Mississippi_____ 5923 10559 ______5879 and (d) (2) of § 6.107 are amended, Grain from Missouri River § 6.216 is redesignated as § 6.207, and Title 5 paragraph (b) is added to § 6.2Q7 as set cities to Chicago, 111______5924 Chapter I: out below. Merchandise in mixed c a r -. Part 6 (4 documents) _ 5879,5881,5882 loads from New Orleans, Part 24______5882 § 6.107 Department of the Air Force—» La., to Alabama, Florida and (a) Office of the Secretary. * * * Georgia______5924 Title 7 (2) Five Special Assistants in the Scrap iron from southern ter­ Chapter VII: Office of the Secretary of the Air Force. ritory to Zanesville, Ohio*. 5923 Part 722 (proposed)______5915 These positions have advisory rather Tanks, expansion, between Chapter IX: than operating duties except as operat­ points in official territory. _ 5924 Part 922___ 5882 ing or administrative responsibilities Woodpulp from Krannert, Part 923 (proposed)______5900 may be exercised in connection with Ga., to official and Part 953______5883 pilot studies. territories______5924 Title 14 * * * * • Heavy and Specialized Carriers Chapter I : (d) General. * * * Tariff Bureau; application for Part 42______5883 (2) Alien Scientists employed under approval of agreement_____ 5925 Part 241 (proposed)______5916 the program for utilization of alien Justice Department Chapter n : scientists approved under pertinent Delegation of authority to Attor­ Part 610______,__ I______5884 directives administered by the Joint ney General with respect to cer­ Part 620______5885 Chief of Staff of the Department of tain responsibilities (see Fed­ Title 24 Defense. eral Civil Defense Administra­ Chapter I : § 6.207 Department of the Air tion) . Part 144 (proposed)______5917 Force. * * * Labor Department Part 145 (proposed)______5917 (b) Civilian Deans and Professors at the Air Force Institute of Technology, Delegation of authority to Secre­ Title 32 Chapter IV: Wright-Patterson Air Base, Dayton, tary with respect to certain re­ Ohio. sponsibilities (see Federal Civil Part 403_____ 5885 Defense Administration). Part 406______5887 (R. S. 1753, sec. 2, 22 Stat. 403; 5 U. S. C. 631, Part 407______5887 633; E. O. 10440, 18 F. R. 1823, 3 CFR, 1953 Land Management Bureau Part 408______5889 Supp.) Notices: Part 410______5890 U nited S tates Civil S erv­ Idaho; revoking former depart­ Title 43 ice Commission, mental order withdrawing [seal] W m . C. Hu l l, public lands for use of Forest Chapter I: Executive Assistant. Service. ______5918 Part 254______5893 [F. R. Doc. 54-7140; Filed, Sept. 10, 1954; Sulphur lease offer; outer con­ Title 47 8:50 a. m.] tinental shelf off Louisiana_5917 Chapter I: Rules and regulations: Part 2______5894 Sale, grant, or lease of public Part 3___ 5894 lands for recreation and pub­ Proposed rules______5916 P art 6— E xceptions F rom the lic purposes______5893 Part 7 (3 documents)______5897, 5898 Competitive S ervice Navy Department Part 8 (2 documents)_____ 5897, 5898 Part 9______5898 FARM CREDIT ADMINISTRATION Armed Services Procurement Reg­ Part 10______5898 Effective upon publication in the F ed­ ulations; miscellaneous amend­ Part 11______5898 ments (see Defense Depart­ eral R egister, paragraph (c) is added to ment) . Part 12 (2 documents) _____ 5898,5899 § 6.165 as set out below. Proposed rules____ *______5917 § 6.165 Farm Credit Administration. Reclamation Bureau Part 16______5898 * * * Notices: Part 18______5899 Revocation orders: (c) Not to exceed seven positions in Blue River-South Platte Proj­ the Credit Services of the Farm Credit ect, Colorado ______5919 tary educational or recreational pro­ Administration in grades GS-13 or above, Hammond Project, New Mex­ grams and which, as an integral part of requiring technical or administrative ico-—------* ______5918 the job, require close working associa­ experience in the field of agricultural tions with the military personnel for credit: Provided, That this authority Small Business Administration whom such programs are conducted. may be used only when making appoint­ Notices: Positions, of librarian, library assistant, ments of persons who have acquired such Connecticut; amendment of recreation leader, and recreation super­ experience in the Farm Credit Admin­ declaration of disaster area 5925 visor are included herein. istration or in one or more of the institu- 5882 RULES AND REGULATIONS tions supervised by the Parai Credit successful completion of a 4-year college cotton and cottonseed, the specific prop­ Administration. course. erties of cotton fibers and types of cot­ (R. S. 1753, sec. 2. 22 Stat. 403; 5 TJ. S. C. 631, (b) Duties. Persons appointed to ton fibers, and must also know the 633; E. O. 10440, 18 F. R. 1823, 3 CFR, 1953 these positions perform the following methods, techniques and practices in­ Supp.) specific kinds of work: volved in the production and marketing (1) Cottonseed Technologists at this of cotton and cottonseed and the manu­ U nited S tates Civil S erv­ grade serve in a trainee capacity and facture of cotton and cottonseed prod­ ice Commission, assist higher grade Cotton Technologists ucts. They must be able to design ex­ [ seal] W m . C. H u ll, perform work in connection with the periments and tests, properly interpret Executive Assistant. testing and analyzing of cottonseed to the results of these tests and disseminate [F. R. Doc. 54-7143; Filed, Sept. 10. 1954; ascertain the effect of variety, growth the results of such tests or experiments 8:51 a. m.] conditions, moisture, trash content, to technical workers in the field and the method of conditioning, sorting and general public. handling and other related factors upon (Sec. 11, 58 Stat. 390; 5 U. S. C. 860) the quality and quantity of products P art 6— E xceptions F rom the obtained from cottonseed. They help U nited S tates Civil S erv­ Competitive S ervice interpret the results of these tests and ice Commission, [ seal] Wm. C. Hu l l, DEPARTMENT OF THE AIR FORCE analyses; help study the physical and chemical characteristics of cottonseed Executive Assistant. Effective upon publication in the to determine those which can be meas­ [F. R. Doc. 54-7144; Filed, Sept. 10, 1954; F ederal R egister, paragraph (a) (2) of ured at the gin in order to develop prac­ 8:51 a. m.] § 6.307 is amended as set out below. tical methods and techniques to grade § 6.307 Department of the Air cottonseed by individual lots as sold by Force— (a) Office of the Secretary. * * * producers; help observe and study pres­ TITLE 7— AGRICULTURE (2) Two Private Secretaries to the ent methods of grading cottonseed so these methods may be improved; and Chapter IX— Agricultural Marketing Secretary, and one Private Secretary to Service (Marketing Agreements and the Under Secretary, to each Assistant render preliminary recommendations Secretary of the Air Force, and one to and reports for publications on the re­ Orders), Department of Agriculture each Special Assistant whose appoint­ sults of their studies or experiments. [Valencia Orange Reg. 21] (2) Fiber Technologists at this grade ment is authorized under subparagraph P art 922—Valencia Oranges G rown in (1) of this paragraph. assist higher grade technologists per­ form the more advanced laboratory Arizona and Designated P art of (R. S. 1753, sec. 2, 22 Stat. 403; 5 TT. S. C. 631, California 633; E. O. 10440, 18 F. R. 1823, 3 CFR, 1953 studies in connection with testing or Supp.) measuring the various properties of cot­ limitation of handling ton fibers; assist in research studies and U nited S tates Civil S erv­ § 922.321 Valencia Orange Regula~ ice Commission, investigations designed to improve equipment and techniques and to de­ tion 21— (a) Findings. (1) Pursuant to [seal] W m . C. H u ll, Order No. 22 (19 F. R. 1741), regulating Executive Assistant. velop new laboratory methods for the more precise and expeditious measure­ the handling of Valencia oranges grown [F. R. Doc. 54-7141; Filed, Sept. 10, 1954; ment of the various properties of cotton in Arizona and designated part of Cali­ 8:50 a. m.] fibers and cotton products; study and fornia, effective March 31, 1954, under observe the interrelationships of various the applicable provisions of the Agricul­ fiber properties and the relationship of tural Marketing Agreement Act of 1937, such properties to processing perform­ as amended (7 U. S. C. 601 et seq.), and P art 24—F ormal E ducation R equire­ ance and product quality; and assist in upon the basis of the recommendation ments for Appointment to C ertain analyzing and interpreting fiber test re­ and information submitted by the Valen­ S cientific, T echnical, and P rofes­ sults and in the preparation of related cia Orange Administrative Committee, sional P ositions reports and publications. established under the said order, and upon other available information, it is cotton technologist (3) Textile Technologists assist in making scientific investigations and ex­ hereby found that the. limitation of han­ Section 24.120 is added to read as perimental studies to determine the ef­ dling of such Valencia oranges, as here­ follows: fect of various cotton fiber properties and inafter provided, will ténd to effectuate . the declared policy of the act. § 24.120 Cotton Technologist, GS- other elements of quality in raw cotton or processing performance and on the (2) It is hereby further found that it 1390-5— (a) Educational requirement. is impracticable and contrary to the pub­ Applicants must have successfully com­ quality of yarns and fabrics; and in help­ ing conduct technical studies of the effect lic interest to give preliminary notice, pleted one of the following: engage in public rule making procedure, (1) A full 4-year course in an ac­ of different processing conditions and machine adjustments on the processing and postpone the effective date of this credited college or university leading to section until 30 days after publication a bachelor’s degree in cotton technology performance of cottons of various types and characteristics, and on product thereof in the F ederal R egister (60 Stat. or related subjects such as physics, 237; 5 U. S. C. 1001 et seq.) because the chemistry, or mechanical or electrical quality. They cooperate with State Agricultural Colleges and Experiment time intervening between the date when engineering. This study must have in­ information upon which this section is cluded courses in cotton technology Stations on programs to improve cotton marketing and processing; serve cotton based became available and the time consisting of lectures, recitations and when this section must become effective appropriate laboratory work totaling at breeders, producers, merchants and man­ in order to effectuate the declared policy least 20 hours; or ufacturers in testing the manufactur­ ing performance of cottons; attend con­ of the act is insufficient, and a reasonable (2) Courses in cotton technology or re­ time is permitted, under the circum­ lated subjects such as physics, chemistry, ferences with representatives of public and private research agencies, cotton stances, for preparation for such effec­ or mechanical or electrical engineering tive time; and good cause exists for (in an accredited college or university, manufacturers and other interested par­ making the provisions hereof effective consisting of lectures, recitations and ties; and assist in analyzing and inter­ preting spinning test results and prepare as hereinafter set forth. The Valencia laboratory work totaling not less than Orange Administrative Committee held 20 semester hours) plus additional ap­ related reports and publications. (c) Knowledge and training requisite an open meeting on September 9, 1951, propriate experience or education which after giving due notice thereof, to con­ when combined with the 20 semester for performance of duties. The field of sider supply and market conditions for hours in cotton technology or related cotton technology is quite complicated Valencia oranges and the need for regu­ subjects will total four years of education and requires an intensive educational lation; interested persons were afforded and experience and give the applicant a background. Cotton Technologists must an opportunity to submit information technical knowledge comparable to that have a full and complete knowledge of and views at this meeting; the recom­ which would have been acquired through the physical and chemical properties of mendation and supporting information Saturday, September 11, 1954 FEDERAL REGISTER 5883 for regulation during the period specified engage in public rule making procedure, TITLE 14— CIVIL AVIATION herein was promptly submitted to the and postpone the effective date of this Department after such meeting was section until 30 days after publication Chapter I— Civil Aeronautics Board held; the provisions of this section, in­ thereof in the F ederal R egister (60 Stat. [Civil Air Regs., Amdt. 42-27] cluding its effective time, are identical 237; 5 U. S. C. 1001 et seq.) because the with the aforesaid recommendation of time intervening between the date when P art 42—I rregular Air Carrier and the committee, and information concern­ information upon which this section is Of f -R oute R ules ing such provisions and effective time has based became available and ..the time been disseminated among handlers of when this section must become effective AIRMAN REQUIREMENTS; PILOT TRAINING such Valencia oranges; it is necessary, in in order to effectuate the declared policy AND CHECK PROGRAM order to effectuate the declared policy of of the act is insufficient, and a reason­ Adopted by the Civil Aeronautics the act; to make this section effective able time is permitted, under the cir­ Board at its office in Washington, D. C., during the period herein specified; and cumstances, for preparation for such ef­ on the 8th day of September 1954. compliance with this section will not re­ fective time; and good cause exists for Part 42 currently contains certain re­ quire any special preparation on the making the provisions hereof effective quirements for the training and checking part of persons subject thereto which as hereinafter set forth. Shipments of of pilots operating in irregular air cannot be completed on or before the lemons, grown in the State of California transportation. Revised Part 40, which effective date hereof. or in the State of Arizona, are currently became effective on April 1, 1954, and (b) Order. (1) The quantity of Va­subject to regulation pursuant to said Part 41 contain similar requirements for lencia oranges grown in Arizona and amended marketing agreement and or­ sch ed u led air transportation. The designated part of California which may der; the recommendation and support­ scheduled air carriers conduct most of be handled during the period beginning ing information for regulation during their operations under Parts 40 and 41 at 12:01 a. m., P. s t., September 12,1954, the period specified herein was promptly and thus organize their training pro­ and ending at 12:01 a. m., P. s.t., Septem­ submitted to the Department after an grams in accordance with the require­ ber 19, 1954, is hereby fixed a& follows : open meeting of the Lemon Administra­ ments of these parts. However, these (1) District 1: Unlimited movement; tive Committee on September 8, 1954 air carriers also conduct charter and (ii) District 2: 450,450 boxes; such meeting was held, after giving due special flights which they may operate (iii) District 3 : Unlimited movement. notice thereof to consider recommenda­ in accordance with Part 42. (2) Valencia oranges handled pur­ tions for regulation, and interested per­ While the training requirements of suant to the provisions of this section sons were afforded an opportunity to Parts 40 and 41 are complete, there are shall be subject to any size restrictions submit their views at this meeting; the some differences between them and the applicable thereto which have hereto­ provisions of this section including its requirements of Part 42 which raise ad­ fore been issued on the handling of such effective time, are identical with the ministrative problems for scheduled air oranges and which are effective during aforesaid recommendation of the com­ carriers with respect to checking the the period specified herein. mittee, and information concerning such qualifications of pilots to be assigned to (3) As used in this section, “handled,” provisions and effective time has been a charter or special flight. For example, “handler,” “boxes,”’ “District 1,” “Dis­ disseminated among handlers of such in revised Part 40 there is more flexibility trict 2,” and “District 3,” shall have the lemons; it is necessary, in order to ef­ in the requirements pertaining to the same meaning as when used in said or­ fectuate the declared policy of the act, periodic checking of pilots. Since the der. to make this section effective during the pilots are continuously receiving train­ (Sec. 5, 49 Stat. 753, as amended; 7 U. S. C. period hereinafter specified; and com­ ing and experience in operations, it was 608c) pliance with this section will not require believed that more flexibility would per­ any special preparation on the part of mit smoother administration by an air Dated: September 10,1954. persons subject thereto which cannot be carrier of a program of periodic checks, [seal] F loyd F . H edlund, completed by the effective time thereof. without adversely affecting safety. Acting Director, Fruit and Veg­ (b) Order. (1) The quantity of A pilot who may be engaged alter­ etable Division, Agricultural lemons grown in the State of California nately in scheduled and irregular air Marketing Service. or in the State of Arizona which may be carrier operations may be subject both to the applicable scheduled air carrier oper­ [P. R. Doc. 54-7028; Filed, Sept. 10, 1954; handled during the period beginning at 11:30 a.m.] 12:01 a. m., P. s. t., September 12, 1954, ating part and to Part 42. In view of the and ending at 12:01 a. m., P. s. t., Sep­ differences in form between the pilot tember 19, 1954, is hereby fixed as training and qualification requirements follows: of the scheduled and irregular air car­ [Lemon Reg. 554] (1) District 1: Unlimited movement; rier rules, unnecessary duplication under these requirements results in such a case. P art 953—L emons Grown in California (ii) District 2: 275 carloads; ‘and Arizona - (iii) District 3: Unlimited movement. The Board believes that the require­ (2) The prorate base of each handler ments of Parts 40 and 41 adequately ful­ LIMITATION OF SHIPMENTS who has made application therefor, as fill the intent of the provisions of Part § 953.661 Lemon Regulation 554— (a) provided in the said amended'marketing 42 even though there may be specific Findings. (1) Pursuant to the marketing agreement and order, is hereby fixed in minor differences. Accordingly, this agreement, as amended, and Order No. accordance with the prorate base amendment provides that the recent 53, as amendëd (7 CFR Part 953; 18 F. R. schedule which is attached to Lemon flight experience and crew member pro­ 6767), regulating the handling of lemons Regulation 553 (19 F. R. 5638) and made ficiency provisions of Part 42 shall not grown in the State of California or in a part hereof by this reference. apply to pilots who for the previous six the State of Arizona, effective under the (3) As used in this section, “handled,” months have been continuously in the applicable provisions of the Agricultural “handler,” “carloads,” “prorate base,” employ of an air carrier which has estab­ Marketing Agreement Act of 1937, as “.District 1,” “District 2,” and “District lished pilot training and check proce­ amended (7 U. S. C. 601 et seq.), and 3,” shall have the same meaning as dures in accordance with the require­ upon the basis of the recommendation when qsed in the said amended market­ ments of Part 40 or Part 41. and information submitted by the Lemon ing agreement and order. Interested persons have been afforded Administrative Committee, established (Sec. 5, 49 Stat. 753, as amended; 7 U. S. O. an opportunity to participate in the under the said amended marketing 608c) making of this amendment, and due con­ agreement and order, and upon other sideration has been given to all relevant Done at Washington, D. C., this 9th matter presented. available information, it is hereby found day of September 1954. that the limitation of the quafltity of In consideration of the foregoing, the such lemons which may be handled, as [seal] F loyd F . H edltjnd, Civil Aeronautics Board hereby amends hereinafter provided, will tend to effectu­ Acting Director, Fruit and Veg­ Part 42 of the Civil Air Regulations (14 ate the declared policy of the act. etable Division, Agricultural CFR Part 42, as amended), effective Oc­ (2) It is hereby further found that it Marketing Service. tober 13, 1954. is impracticable and contrary to the [P. R. Doc. 54-7194; Piled, Sept. 10, 1954; By amending § 42.40 (a) to read as fol­ public interest to give preliminary notice, 8:56 a. m.] lows: 5884 RULES AND REGULATIONS

§ 42.40 Airman requirements, (a) 4. Section 610.390 Red civil airway No. 10. Section 610.6007 VOR civil airway No air carrier shall utilize an individual 90 is amended to read: No. 7 is amended to read in part: as an airman unless he has met the ap­ propriate requirements of the Civil Air Mini­ Regulations: Provided, That the provi­ Mini­ mum From— To— mum sions of §§ 42.44 (a) and 42.45 shall not From— To— alti­ alti­ be applicable to pilots who for the pre­ tude tude vious six months have been continuously Miami, Fla. (VOR), Tamiami1 (INT), 1,200 in the employ and participating regu­ Camarillo, Calif. (LFR). Canoga Park, Calif. 5,000 via W alters. Fla. via W alter. larly in the training program of an air (ILS/LOM). Tamiami (INT), Fla., Ft. Myers, Fla. * 2,000 Canoga Park, Calif. Burbank, Calif. via W alter. (VOR), via W alter. carrier which has established pilot train­ (ILS/LOM). (LFR): ing and check procedures in accordance Eastbound______8,000 Westbound______5,000 1 2,000'—Minimum reception altitude. with the requirements of Part 40 or Part * 1,200'—Minimum terrain clearance altitude. 41 of this subchapter. (Sec. 205; 52 Stat. 984; 49 U. S. C. 425. in­ 11. Section 610.6016 VOR civil airway terprets or applies secs. 601, 604; 52 Stat. 5. Section 610.403 Red civil airway No.No. 16 is amended to read in part: 1007, 1010, as amended; 49 U. S. C. 551, 554) 103 is amended to read in part: By the Civil Aeronautics Board. Mini- From— To— mum [seal] M. C. Mulligan, Mini­ alti- mum tude Secretary. From— To— alti­ tude [P. R. Doc. 54-7158; Piled, Sept. 10, 1954; Salt Flat,1 Tex. (VOR). Gore (IN T), Tex____ 10,000 8:54 a. m.] Gore * (IN T), Tex...... Wink, Tex. (VOR)... 6,000 Skilak 1 (IN T), Alaska. Cleare (IN T), Alaska. 9.000 Cleare (IN T), Alaska.. Middleton Island, 2.000 Alaska (LF/RBN). 18,900'—Minimum crossing altitude at Salt Flat (VOR), eastbound. Chapter II— Civil Aeronautics Admin­ » 7,200'—Minimum crossing altitude at Gore (INT), 16,100'—Minimum crossing altitude at Skilak (INT), westbound. istration, Department of Commerce Southeast-bound. 12. Section 610.6022 VOR civil airway [Arndt. 73] No. 22 is amended to read in part: P art 610— M inimum E n R oute IF R 6. Section 610.627 Blue civil airway No. A ltitudes 27 is amended to read in part: Mini­ mum miscellaneous amendments From— To— . alti­ tude The minimum en route IFR altitudes Mini­ mum appearing hereinafter have been coordi­ From— To— alti­ Tallahassee, Fla. Greenville (IN T), Fla. 1,400 nated with interested members of the in­ tude (VOR). dustry in the regions concerned insofar Greenville (IN T), Fla.. Genoa1 (IN T), F la ... *3,000 Genoa 1 (INT). Fla___ Taylor (IN T). F la .... »2,500 as practicable. The altitudes are adopt­ Rocky Point (INT), King Salmon, Alaska 8,300 Taylor * (INT), Fla.__ Jacksonville, Fla. 1,300 ed without delay in order to provide for Alaska. (LFR). (VOR). safety in air commerce. Compliance with the notice, procedures, and effective 13,000'—Minimum reception altitude. date provisions of section 4 of the Ad­ * 1,500'—Minimum terrain clearance altitude. 7. Section 610.662 Blue civil airway 81,300'—Minimum terrain clearance altitude. ministrative Procedure Act would be im­ * 1,500'—Minimum reception altitude. practicable and contrary to the public No. 62 is amended to read in part: interest, and therefore is not required. 13. Section 610.6024 VOR civil airway No. 24 is amended to eliminate: Part 610 is amended as follows: Mini­ (Listed items to be placed in appropriate mum From— To— sequence in the sections indicated.) alti­ Mini- Amber civil airway tude mum 1. Section 610.107 From— To— alti- No. 7 is amended to read in part: tude Detroit, Mich. (LFR). Flint, Mich. (ILS/ 2,500 LOM). Mini- Flint,' Mich. (ILS/ Saginaw, Mich. (LF/ 2,200 Jamestown, N. D. A b erd een, S. D . 13,300 mum LOM). RBM). (VOR). (VOR). From— T o - alti­ tude 1 2,800'—Minimum terrain clearance altitude. Miami, Fla. (LFR)___ Bayshore (IN T), Fla.. 1,400 8. Section 610.1001 Direct rou tes; Bayshore (IN T), Fla_ West . Palm Beach, 1,500 14. Section 610.6042 VOR civil airway Fla. (LFR). United States is amended by adding: No. 42 is amended to read in part:

Mini- 2. Section 610.320 Red civil airway No. Mini­ mum mum From— To— 20 is amended to read in part: From— To— alti­ tude tude Mini­ »3,500 mum Seal (IN T), A laska... 2,000 Pullman, Mich. Bedford (IN T), Mich. From— To— alti­ Middleton Island, (VOR). tude Alaska (LF/RBM). 13,000'—Minimum terrain clearance altitude. Goodrich (IN T),M ich. Windsor,1 Ont., Can­ 2,300 ada (L FR ). 9. Section 610.6004 VOR civil airway 15. Section 610.6111 VOR civil airway No. 4 is amended to read in part: ■No. I l l is added to read: * For that airspace over U. S. territory. 3. Section 610.368 Red civil airway No. Mini­ Mini­ mum 68 is amended to read in part: mum From— V To— alti­ From— To— alti­ tude tude Mini­ »7,000 From— To— mum Salinas, Calif. (V O R ).. Int. 094° rad. San alti­ Malad City, Idaho Green River (IN T). 113,800 Francisco, Calif. tude VOR). Wyo. (VOR), and 032° Green River (INT), Rock Springs, Wyo. 10,000 rad. Satinas, Calif. Wyo. (VOR). (VOR). Tyler, Tex. (LFR )..... Shreveport, L a . 2,300 (LFR). 112,000'—Minimum terrain clearance altitude. * 5,500' Minimum terrain clearance altitude. Saturday, September 11, 1954 FEDERAL REGISTER 5885

16. Section 610.6134 VOR civil airway (Sec. 205, 52 Stat. 984, as amended; 49 U. S. C. A u t h o r it y : §§403.000 to 403.215 issued No. 134 is added to read: 425. Interpret or apply secs. 1201-1204, 64 under R. S. 161; 5 U. S. C. 22. Interpret or Stat. 825; 49 XT. S. C. Sup. 701-704) apply 62 Stat. 21; 41 U. S. C. 151-161.

Mini- This amendment shall become effective § 403.000 Scope of part. This part mum October 1, 1954. sets forth, on the basis of the provisions From— To— alti­ tude [seal] S. A. K em p, of and authority contained in the Armed Acting Administrator Services Procurement Act of 1947 (41 Evergreen, Ala. ((VOR. Columbus, Ga.‘ (VOR). •3,500 of Civil Aeronautics. U. S. C. 151-161), as amended, and the Columbus, Ga. (VOR). Atlanta, Ga. (V O R ).. 2,400 National Security Act of 1947 (5 U. S. [F. R. Doc. 54-7118; Piled, Sept. 10, 1954; 8:46 a. m.] Code 171-172j), as amended, the basic 12,100'—Minimum terrain clearance altitude. policies and requirements relating to coordinated procurement of supplies and 17. Section 6.10.6164 VOR civil airway services. No. 164 is amended to read: TITLE 32— NATIONAL DEFENSE § 403.001 Interdepartmental pro­ Chapter IV— Joint Regulations of the curement. Procurement of supplies and Mini­ Armed Forces services from or through Government mum From— - To— alti­ Subchapter A— Armed Services Procurement departments or agencies outside the tude Regulation Department of Defense shall be accom­ plished in the manner set forth in Part P art —Coordinated P rocurement Grover (IN T), P a...... Wilkes-Barre, Scran­ 4,000 403 '404 of this subchapter. ton, Pa. (LFR ). Wilkes-Barre Scranton, Stillwater >(INT), N. J. 3 6,000 This part has been revised in its en­ § 403.002 Procurement agreements. Pa. (L FR ). tirely and now collates all applicable Section 10 of the Armed Services Pro­ Stillwater • (IN T), N. J Caldwell, N. J. (VOR). *6,000 material on the subject, except for indi­ curement Act provides that Department vidual procurement assignments. heads by agreement may make such •6,000'—Minimum reception altitude. 3 4,000'—Minimum terrain clearance altitude. Sec. assignments and delegations of procure­ 403.000 Scope of part. ment responsibilities from one Depart­ (Sec. 205, 52 Stat. 984, as amended; 49 U. S. C. 403.001 Interdepartmental procurement. ment to another or may create such 425. Interpret or apply sec. 601, 52 Stat. 403.002 Procurement agreements. 1007, as amended; 49 U. S. C. 551) joint or combined Procuring Activities SUBPART A— DEFINITION OF TERMS or agencies as they deem necessary or These rules shall become effective 403.101 Definitions. desirable. Nothing set forth in this September 28, 1954. 403.101- 1 Coordinated procurement. subchapter shall preclude the Depart­ 403.101- 2 Single procurement. ments from making agreements under [ s e a l ] S. A. K e m p , Acting Administrator 403.101- 3 Requiring Department. t said section 10 which do not violate the 403.101- 4 Procuring Department. single procurement policies and proce­ of Civil Aeronautics. 403.101- 5 Military Interdepartmental Pur­ dures set forth in this part or in appli­ [P. Ri Doc. 54-7060; Piled, Sept. 10, 1954; chase Request. cable Department of Defense Directives, 8:45 a. m.] SUBPART B— POLICIES AND GENERAL PRINCIPLES Instructions, and regulations.

403.200 Scope of subpart. SUBPART A— DEFINITION OF TERMS 403.201 Application of procurement as­ signment. § 403.101 Definitions. As used in [Amdt. 4] 403.202 Responsibilities under single pro­ this subchapter, the following terms curement. P art 620—Security Control of 403.202- 1Single Department Procurement. have the meanings set forth in Air T raffic 403.202- 2 Joint procurement. §§ 403.101-1 to 403.101-5. 403.202- 3 Plant cognizance procurement. § 403.101-1 Coordinated procure­ DESIGNATION OF CALIFORNIA (DOMESTIC) 403.203 General principles covering im­ ADIZ ment. The term “coordinated procure­ plementation of procurement ment” refers to procurement (a) of sup­ Part 620 is hereby amended for the assignments. 403.203-1 Standard format; development plies and services pursuant to the purpose of deleting the common bound­ and promulgation of imple­ authority set forth in § 403.002, and (b) ary separating the San Francisco (Do­ menting procedures. of supplies under single procurement as mestic) ADIZ and the Los Angeles (Do­ 403.203-2 Relationship between research defined in § 403.101-2. mestic)- ADIZ. The single ADIZ formed and development and single as a result of this action is designated as procurement. § 403.101-2 Single procurement. The the California (Domestic) ADIZ, and its 403.203- 3 Small dollar value purchases. term “single procurement” refers to pro­ boundaries are defined in subparagraph 403.203- 4 Emergency. curement of supplies pursuant to assign­ 403.203- 5Department of Defense manu­ ments of procurement responsibility (b) of § 620.21 Since a military func­ facturing establishments. tion of the United States is involved, made by the Secretary of Defense. The 403.204 Items in short supply. following are approved types of single compliance with notices, procedures, and 403.205 Transfer of uncompleted con­ effective date provisions of section 4 of tracts. procurement: Administrative Procedure Act is not 403.205- 1 Effect of assignment of procure-- (a) “Single department procurement,” required. ment responsibility. whereby one Department procures cer­ Section 620.21 is amended as follows: 403.205- 2 Disputes under transferred con­ tain supplies to satisfy the requirements 1. Amended paragraph Ob) to read: tracts. of all the Departments. 403.205- 3 Contracting Officers under trans­ (b) “Plant cognizance procurement,” (b) California (Domestic) ADIZ. The ferred Contracts. area bounded by a line 42° 00' N., 120° 403.206 Purchase authorization. whereby one Department procures cer­ 00' W.; due south to 39° 00' N., 120° 00' 403.207 Components of end items. tain supplies from a particular plant to W.; 35° 00' N., 114° 30' W.; due east to 403.207- 1 Contractor-furnished compo* satisfy the requirements of all the De­ 35° 00' N., 113° 30' W.* due south to ^2° nents. partments. This type of procurement 05' 30" N., 113° 30' W.; westerly along 403.207- 2 Government - furnished compo­ is limited presently to airframes, aircraft nents. the U. S.-Mexican international bound­ 403.207- 3 Purchase of components over and engines, and propellers. ary to 32° 32' 03" N., 117° 07' 25" W.; above those initially purchased (c) “Joint procurement,” whereby a 32° 30' N., 117° 20' W.; due west to 32° with the end item. jointly staffed and financed agency with­ 30' N., 117° 45' W.; 33° 15' N., 118° 30' 403.208 Fluids and payments. in the Department of Defense procures W.; 34° 00' N., 120° 30' W.; 34° 50' N., 403.209 Charges and surcharges. 403.210 Administrative costs. certain supplies to satisfy the require­ 121° 10' W.; 38° 50' N., 124° 00' W.; 40° ments of all the Departments. 00' N., 124° 35' W.; 42° 00' N., 124° 38' 403.211 Inspection. 403.212 Execution and administration of § 403.101-3 Requiring Department. 10" W.,* due easrto 42° 00' N., 120° 00' contracts. W (point of beginning). 403.213 Status reporting. The term “Requiring Department” refers 2. Delete paragraph (c) designating 403.214 Specifications. to the Department originating a requisi­ the Los Angeles (Domestic) ADIZ. 403.215 Transportation of supplies. tion or purchase request for supplies. 5886 RULES AND REGULATIONS § 403.101-4 Procuring Department. § 403.202-3 Plant cognizance procure­ eral rule, when the procurement respon­ The term “Procuring Department” re­ ment. Responsibilities for procurement sibility for a commodity or class of com­ fers to the Department or agency which and mobilization planning are as set modities is assigned to one Department, is assigned the procurement responsi­ forth in the Munitions Board memoran­ uncompleted contracts of any other De­ bility for the Supplies. dum of 14 February 1949, subject: “As­ partment for any such commodity or signment of Procurement Responsibilities class of commodities will not be trans­ § 403.101-5 Military Interdepart- and Mobilization Planning Responsibili­ ferred but will continue to be adminis­ mental Purchase Request. This term, ties in Selected Aviation Plants,” and tered for all purposes by such other hereinafter referred to as “MIPR,” refers any amendments thereto. Department. to DD Form 448 (Military Interdepart­ mental Purchase Request) executed by § 403.203 General principles govern­ § 403.205-2 Disputes under trans­ a Requiring Department as a request for ing implementation of procurement ferred contracts. In the case of any supplies to be procured or furnished by assignments. contract transferred, or to be transfer­ the Procuring Department. red, from one Department to another § 403.203-1 Standard format; de­ Department, which contract refers to SUBPART B— POLICIES AND GENERAL velopment and promulgation of imple­ either the Navy Department Board of PRINCIPLES menting procedures. Implementation of 'Contract Appeals or the Army Board of a procurement assignment shall be ac­ § 403.200 Scope of subpart. This sub­ Contract Appeals, the contract shall be complished in. accordance with Depart­ amended to provide that the Armed part sets forth policies and general prin­ ment of Defense Directive 4115.28, July ciples governing the single procurement 26, 1952, subject: “Implementation of Services Board of Contract Appeals will of supplies by the Departments. hear and decide all disputes concerning Procurement Assignments,” and any questions of fact which are appealed § 403.201 Application of procurement amendments thereto. pursuant to the “disputes” clause of such assignment. Single procurement in the § 403.203-2 Relationship between re­ transferred contract. form of single department, joint agency, search and development and single pro­ or plant cognizance procurement shall be curement. Items are not subject to § 403.205-3 Contracting Officers un­ effected whenever it will result in net der transferred contracts. In the case procurement assignment until they have of any contract transferred, or to be advantages to the Department of Defense reached the production stage. as a whole, except so far as it can be transferred, to any Department, the suc­ demonstrated that use of such a procure­ § 403.203-3 Small dollar value pur­ cessor to the Contracting Officer for each ment method will adversely affect mili­ chases. Requirements of small dollar such contract shall be the Head of the tary operations. value will be procured in accordance Procuring Activity (or any Contracting with the provisions of the approved irp- Officer thereof) to which the adminis­ § 403.202 Responsibilities under single plementing procedures covering the par­ tration of any such contract is assigned, procurement. ticular assignment. and any such successor shall have all of § 403.202-1 Single Department Pro­ § 403.203-4 Emergency. In case of the rights and responsibilities of a Con­ curement. The Procuring Department emergency, where the exigencies'of the tracting Officer under such transferred is generally responsible for the follow­ situation will not permit of the delay contract, ing, Under single department procure­ incident to following the normal channels § 403.206 P u rch ase authorization. ment (for specific assignment of of single procurement, purchases may be MEPR’s or other authorized procurement procurement responsibilities, see DOD made without the prior authorization of requests, when received by the Procuring publication “Procurement Assignments, the Procuring Department. When such Department, will be the authority to pro­ List of Commodities”) : emergency purchases are made, one copy cure the supplies listed thereon or to (a) Operational phases of procure­ of the contractual instrument, bearing furnish from stock, in accordance with ment planning (phasing the submission or accompanied by a statement of agreements between the Departments of requirements, consolidating require­ the emergency, shall be transmitted concerned, subject to the provisions of ments, analyzing the market, and deter­ promptly to the purchasing activity of § 403.208. Although the Procuring De­ mining patterns for the phased place­ the Procuring Department. partment has no responsibility to deter­ ment of orders in such a manner as to § 403.203-5 Department of Defense mine the validity of a stated requirement assure meeting the needs of the De­ in an approved procurement request, it partments at the lowest possible price to manufacturing establishments. When procurement assignments have been should bring to the attention of the Re-* the Government, and at the same time quiring Department apparent oç obvious avoiding unnecessary peaks and valleys made for items required by manufac­ turing establishments of the Depart­ errors in the requirement. Deviations of production). from provisions of the MIPR or other (b) Purchasing. ments, these items shall be obtained (c) Contract Administration, includ­ through the facilities of the Procuring authorized procurement request shall not ing arrangements for follow-up and Department unless such action will un­ be made by the Procuring Department expediting. duly hinder or delay production. When without approval of the Requiring De­ (d) Acquisition of licenses under pat­ procurements are made other than partment. through the Procuring Department, one ents or other proprietary rights covering § 403.207 Components of end items. the subject matter of the procurement copy of the contractual instrument bear­ and the settlement of patent infringe­ ing or accompanied by a statement of § 403.207-1 Contractor-f u r n i shed ment claims arising out of the procure­ the circumstances necessitating such components. In thé* procurement of ment. Approval of the Department or procurement shall be transmitted end items where the Contractor normally Departments whose funds aré to be promptly to the purchasing activity of secures all components thereof from his charged for the acquisition of licenses the Procuring Department. This sec­ own source (not Government-fur­ or settlement of claims will be obtained. tion is not applicable when purchases are nished), the procurement assignment made pursuant to § 403.203-3. (e) Arrangement for inspection. does not apply to the component items (f) Arrangement for transportation. § 403.204 Items in short supply. In required by such Contractor. (g) Development, under the policies cases where shortages in supplies de­ of the Assistant Secretary of Defense velop, the normal procedure will be to § 403.207-2 Government-furnished (Supply and Logistics), of joint Military resolve the problem on a Departmental components. In the procurement of end or Federal specifications when possible. level. If mutual agreement cannot be items where the Government furnishes (h) Initiation and promotion, under reached, the subject shall be referred to components which are covered by a pro­ the policies of the Assistant Secretary of the Joint Munitions Allocations Com­ curement assignment, such components Defense (Supply and Logistics), of the mittee of the Joint Chiefs of Staff for shall be procured in, accordance with the maximum degree of standardization. decision. procurement assignment. However, di­ § 403.202-2 Joint procurement. Re­ § 403.205 Transfer of uncompleted rect purchase may be made by a Requir­ sponsibilities for procurement by a joint contracts. ing Department in exceptional cases agency are as set forth in the individual § 403.205-1 Effect of assignment of where agreement is reached with the agency charter. procurement responsibility. As a gen­ Procuring Department. Saturday, September 11, 1954 FEDERAL REGISTER 5887

§ 403:207-3 Purchase of components ment in order that contracting personnel to receive the same: Provided, That a copy over and above those initially purchased may be currently informed as to the per­ of any part or all of this contract so marked with the end item. The procurement of formance by a Contractor and to further may be furnished, or any information con­ components covered by a procurement insure that Requiring Departments are tained therein may be disclosed, to such assignment, over and above those ini­ apprised of the status of contracts. assignee upon the prior written authoriza­ tially purchased with the end item, shall tion of the Contracting Officer. be effected in accordance, with the pro­ § 403.214 Specifications. The Pro­ 2. Section 406.103-12 has been revised curement assignment. However, direct curing Department shall have the re­ to conform to 68 Stat. 81. It now reads purchase may be made by a Requiring sponsibility for the following specifica­ as follows: tion activities, except as otherwise Department in exceptional cases where § 406.103-12 Disputes. agreement is reached with the Procur­ assigned : ing Department. (a) Obtaining from the Requiring DISPUTES Department a list of (or copies of) Except as otherwise provided in this con­ § 403.208 Funds and payments. [Re­ specifications used in the assigned field; tract, any dispute Concerning a question of served] (Pending publication of ,this (b) Reviewing the specifications to fact arising under this contract which is section, funds to be obligated by a Con­ determine those which are of such in­ not disposed of by agreement shall be de­ tracting Officer in response to a MIPR terest that military or Federal specifica­ cided by the Contracting Officer, who shall or other authorized procurement request tions should be prepared; reduce his decision to writing and mail or shall not exceed the amounts certified (c) Taking aetion to have initiated otherwise furnish a copy thereof to the Con­ by the requiring activity, in accordance military or Federal specifications proj­ tractor. Within 30 days from the date of with the provisions of Department of receipt of such copy, the Contractor may ects; appeal by mailing or otherwise furnishing Defense Directive 7200.1, March 20, 1952, (d) Acting as custodian of military to the Contracting Officer a written appeal subject: “Administrative Control of Ap­ specifications in assigned fields. addressed to the Secretary, and the decision propriations within the Department of of the Secretary or his duly authorized rep­ Defense, and implementing Departmen­ Under no circumstances will the Pro­ resentative for the hearing of such appeals tal regulations”). curing Department direct or authorize shall, unless determined by a court of com­ deviations from the specifications con­ petent jurisdiction to have been fraudulent § 403.209 Charges and surcharges. tained in the MIPR without express au­ or capricious or arbitrary or so grossly Items requested by one Department from thority of the Requiring Department. erroneous as necessarily to imply bad faith, another Department which are furnished or not supported by substantial evidence, be from inventory stocks shall be billed at § 403.215 Transportation of supplies. final and conclusive; provided that, if no catalog or book price. However, when Subject to the provisions of § 400.306, such appeal is taken, the decision of the items do not fully'conform to prescribed every requisition or procurement request Contracting Officer shall be final and con­ shall show the appropriation or fund clusive. In connection with any appeal specifications or standards, or are con­ proceeding under this clause, the'Contractor sidered excess or obsolete stock, the items and accounting classification chargeable shall be afforded an opportunity to be heard shall be billed at a price mutually agree­ for such transportation costs as may be and to offer evidence in support of its ap­ able to both Departments. Items fur­ incurred in effecting delivery at Govern­ peal. Pending final decision of a dispute nished from stocks financed by stock ment expense. Government bills of lad­ hereunder,, the Contractor shall proceed ing, when required, will generally be diligently with the performance of the con­ funds shall be handled in accordance tract and in accordance with the Contract­ with Department of Defense regulations issued by the Procuring Department. In every instance, the Government bill of ing Officer’s decision. governing the operation of stock funds. With respect to inclusion of a “Dis­ Costs of packing, crating, and handling lading shall show (a) the Requiring De­ putes” clause in construction contracts, see such materials shall not be billed unless partment as the Department to be billed, § 415.004-3 (d). approved by the Assistant Secretary of and (b) the appropriation or fund des­ Defense (Comptroller). Administrative ignated by that Department as the ap­ In accordance with Department pro­ costs shall be handled in accordance propriation chargeable. Where Govern­ cedures, the foregoing clause may be with § 403.210. ment bills of lading of the Procuring modified to provide for intermediate Department are used to cover shipment appeal to the Head of the Procuring § 403.210 Administrative costs. The of supplies consigned to the Requiring Activity concerned. The decision of the Procuring Department shall bear, with­ Department, the bill of lading number Contracting Officer referred to in the out reimbursement therefor, the ad­ shall be prefixed by the name of the above clause shall, if mailed, be sent by ministrative costs -incidental to its Requiring Department. registered mail, return receipt requested. procurement of supplies for another T . P . P ik e , (R. S. 161; 5 U. S. C. 22. Interpret or apply Department. However, when a procure­ 62 Stat. 21; 41 U. S. C. 151-161) ment responsibility is transferred from Assistant Secretary of Defense one Department to another Department, (Supply and Logistics'). T . P . P ik e , funds appropriated or to be appropriated [F. R. Doc. 54-7112; Filed, Sept. 10, 1954; Assistant Secretary of Defense for defraying the administrative costs 8:45 a. m.] (Supply and Logistics). of such procurement responsibility shall [F. R. Doc. 54-7113; Filed, Sept. 10, 1954; be made available to the successor Pro­ 8:45 a. m.] curing Department which shall assume budget cognizance at the earliest possible P art 406—Contract Clauses and F orms date. Subpart A —Clauses for F ixed P rice P art 407—T ermination of Contracts § 403.211 inspection. Policies and S u p ply Contracts procedures concerning inspection and miscellaneous amendments REQUIRED CLAUSES acceptance for use in conjunction with Several changes have been made to this part are set forth in Part 413 of this Section 406-103 Required clauses, is Part 407 which should result in a con­ subchapter. amended as follows: siderable measure of expedition of set­ § 403.212 Execution and administra­ i. Section 406-103-8 (b) is amendedtlement of subcontracts and disposal of tion of contracts. Generally, the Pro­ by deletion of the classification category termination inventory. curing Department will execute a single “Restricted” therefrom, to conform the 1. Section 407.518-6 has been amend­ contract where an award embodying the “Assignment of Claims” clause to Execu­ ed by increasing the monetary authority requirements of more than one Depart­ tive Order 10501 (18 F. R. 7049) and DOD for settlement by prime and subcon­ ment is made to a single Contractor. Directive 5200.1, November 19, 1953. It tractors of subcontract termination Administration of contracts shall be in now reads as follows: claims without approval by the Con­ accordance with the procedures devel­ (b) In no event shall copies of this con­ tracting Officer from $1,000 to $10,000. oped by the Procuring Department in ac­ tract or of any plans, specifications, or other It now reads as follows: cordance with § 403.203-1. similar documents relating to work under this contract, if marked “Top Secret”, § 407.518-6 Authorization of settle­ § 403.213 Status reporting. Appro­ “Secret”, or “Confidential”, be furnished to m ent under $10,000 of subcontractors’ priate systems of followup shall be any assignee of any claim arising under this termination proposals without approval maintained by the Procuring Depart- contract or to any other person not entitled or ratification, (a) The Contracting No. 177— -a 5888 RULES AND REGULATIONS

Officer may, if satisfied with the ade­ based on a series of separate orders for § 407.602-3 Cost-reimbursement type quacy of the procedures used by the the same item under one contract, contracts. Whether or not the Govern­ Contractor in settling the termination should be consolidated wherever possi­ ment has previously acquired title there­ claims (including proposals for reten­ ble, and must not be divided in such a to under the provisions of a cost-reim­ tion, sale, or other disposal of termina­ way as to bring them within the authori­ bursement type contract, the Contractor tion inventory, of its immediate and zation provided for in this paragraph» may, with the approval of the Contract­ lower tier subcontractors, upon the writ- ing Officer, upon appropriate adjustment 2. Section 407.601-3 has been amended of any previously reimbursed costs re­ teen request by the Contractor, authorize as follows: § 407.601-3, as revised facili­ the Contractor to conclude settlements tain or return to the supplier any items tates disposal of Government-furnished of Contractor-acquired termination in­ of his terminated subcontracts, which property by eliminating the requirement settlements shall thereupon be reim­ ventory under the provisions of §§ 407.- that supplies must be surplus before dis­ 602-1 and 407.602-2. bursable in accordance with this part position is authorized. It now reads: and the Termination Clause of the con­ 4. Section 407.603-2 has been amended tract, without requiring approval or § 407.601-3 Government - furnished by the addition of a sentence. It now ratification by the Contracting Officer, property. Government-furnished prop­ reads as follows: subject, however, to the following condi­ erty which is included in termination in­ tions and requirements: ventory, delivery of which has not been § 407.603-2 General classifications. (1) The amount of any such subcon­ required by the Government, may be dis­ Contractor-acquired property and Gov­ tract termination settlement does not posed of in the same manner as other ernment-furnished property shall be exceed $10,000, determined in accord­ termination inventory after screening in listed separately to the extent practica­ ance with § 407.202: Provided, however, accordance with the requirements of ble. Within each of these categories, That the Contracting Officer shall not § 407.606, except that § 407.602 does not separate sets of schedules shall be sub­ grant to the Contractor any authority apply to the disposition of such Govern­ mitted (as set forth in Subpart G of this hereunder in respect of subcontract ter­ ment-furnished property. The Con­ part) covering the following: mination settlements between $1,000 and tracting Officer is required to approve all (a) Serviceable aircraft or aircraft $10,000 without the express written ap­ such dispositions and may specify meth­ components; proval of the Head of the Procuring ods for preparing and routing inventory (b) Other serviceable or usable mate­ Activity concerned, or of a deputy or schedules covering such property. rials; (c) Scrap or salvage. principal assistant responsible for con­ 3. Section 407.602 as revised author­ tract matters. izes Contractors to return Contractor-ac­ To the extent that it may be practicable, (2) Any termination inventory in­ quired property to their suppliers and to separate sets of schedules will be sub­ cluded in the determination of the secure reimbursement and restocking mitted for property to be screened and amount of the settlement has been dis­ charges or 15 percent of the cost of re­ property not to be screened under the posed of in accordance with the proce­ turned inventory, whichever is less; provisions of § 407.606. The classifica­ dures set forth in § 407.614, except that where proper use of retained contractor- tion proposed by the Contractor in his the disposition of such inventory shall acquired property requires moving of in­ schedules shall be subject to the ap­ not (i) be subject to review by the Con­ ventory, a Contractor may now be reim­ proval of the Contracting Officer. tracting Officer under the provisions of bursed for the reasonable cost of han­ 5. Section 407.606 Screening of serv­ § 407.614-1 (a) or § 407.614-4, or (ii) be dling and transportation. iceable and useable property has been subject to the provisions of § 407.614-5 amended as follows: (a). § 407.602 Retention of contractor-ac­ (3) Completed articles allocable to quired property by contractor ; return of § 407.606 Screening of serviceable the terminated subcontract may also be property to suppliers. and useable property. disposed of without review by the Con­ § 407.602-1 Retention of property by § 407.606-1 Scope of screening, (a) tracting Officer under § 407.614-1 (a) or contractors. Subject to the right of the Subject to the provisions of paragraphs § 407.614-4, and without screening under Government to acquire any item of Con­ (b), (c), and (d) of this section service­ §407.614-5 (a), provided that the tractor-acquired property and to the pro­ able and useable property included in amount thereof (at the subcontract visions of § 407.602-3, Contractors are the Contractor’s inventory schedules price) when added to the amount of the encouraged to retain such property at will be screened as follows: settlement as determined under sub- cost and shall not include any part of the (1) Inventories of aircraft and air­ paragraph (1) of this paragraph does cost of property so retained in settlement craft components will be screened for not exceed $10,000. Except to this ex­ proposals, except that in any instance in possible redistribution within the Air tent, § 407.614 shall apply to any dis­ which a Contractor desires to retain any Force and the Navy; posal of completed articles allocable to allocable Contractor-acquired property (2) Inventories of other items will be the terminated subcontract. for the purpose of utilization at another screened to the extent required by the (4) Each such settlement is accom­ plant location and such retention is Procuring Activity. Items which are re­ panied by a certificate in the form set deemed to be in the best interest of the portable for further screening under ap­ forth in § 407.708. Government, reasonable handling and plicable regulations will be so reported; (b) The Contracting Officer granting transportation charges with respect to (3) Termination inventory to which the above defined authorization to a property so retained may be included in the provisions of § 467.518-6 are ap­ Contractor shall be responsible for pe­ the Contractor’s settlement proposal as plicable does not require screening. . riodically making a selective review of “other costs.” (b) If the contractor has been settlements to determine whether the § 407.602-2 Return of property to directed by the Notice of Termination to Contractor is making adequate reviews suppliers. Subject to the right of the deliver any items of termination inven­ and fair settlements, and whether such Government to acquire any item of tory to the Government no further authorization shall remain in effect. Contractor-acquired property and to the screening of those items will be required. Whenever the Contracting Officer deter­ provisions of § 407.602-3, Contractors (c) If the total serviceable and usa­ mines that the Contractor’s procedures are authorized and encouraged to return ble property included in the Contrac­ are not adequate or that improper set­ allocable quantities of such property to tor’s inventory schedules has an original tlements are being made, he may revoke suppliers for full credit less the supplier’s cost of $500 or less, such property need the authorization by written notice to normal restocking charge, or 15 percent not be screened unless the Contracting the Contractor. The revocation of the of cost, whichever is less. Contractors Officer determines that screening is authority shall take effect only from the shall not include in their termination desirable. date of receipt of written notice by the settlement proposals the cost of termi­ (d) Line items included in the Con­ Contractor. nation inventory returned to suppliers tractor’s inventory, having an original (c) Any number of separate settle­ in accordance with this paragraph. The cost of $300 ($1,000 in the case of for­ ments of $10,000 or less may be made Contractor may include in his settlement eign excess) or less, need not be screened with a single subcontractor. Claims proposal as “other costs” the transpor­ (unless the Contracting Officer deter­ which would normally be included in a tation, handling, and restocking charges mines that screening is desirable), pro-, single settlement proposal, such as those with respect to the property so returned. vided that such items are listed by the Saturday, September 11, 1954 FEDERAL REGISTER 5889

Contractor on a separate schedule or § 407.608-1 and paragraph (a) (3) of lower-tier subcontractors’ termination schedules. The term “line item” as used this section: Provided, however, That the inventory schedules of serviceable and in this paragraph means all substantially approval of such a board or other review­ usable property directly to the Contract­ similar articles under any one contract ing agency shall be required, as a mini­ ing Officer for review and disposition at any one location and which should mum, in any case hereunder in which the instructions, unless otherwise directed by be listed as a single entry in an inven­ original acquisition cost of the materials the Contracting Officer. In the interest tory schedule.. involved exceeds $25,000. of expediting disposition of termination § 407-606-2 Screening period. If 8. Section 407.613-2 is amended to inventory, the cognizant Contracting Of­ screening under § 407-606 has not been read as follows: ficer will permit such direct submission, completed within 60 calendar days after unless he determines that the submission the date the property involved is re­ § 407.613-2 Required review. The of inventory schedules through all inter­ ported by the Procuring Activity to the following property disposal matters shall mediate tiers of subcontractors is neces­ Surplus Materials Division, Department be reviewed by a Property Disposal Re­ sary in the best interest of the Govern­ of Defense, and no instructions with re­ view Board prior to approval or ratifica­ ment. When such a determination is spect to such property have been re­ tion by the Contracting Officer : made, it must be in writing and a copy ceived by the Contracting Officer within (a) A determination that material is submitted to the Head of Procuring such 60-day' period, the Contracting scrap or salvage, if the original acquisi­ Activity concerned for review. tion cost of the material is $25,000 or Officer shall promptly notify the Con­ more. (R. S. 161. 5 U. S. C. 22. Interpret or apply tractor and thereafter such property 62 Stat. 21; 41 U. S. O. 151-161) X-ray film (2) film more than one hun­ of this section, he may take appropriate (including any charges for packaging, dred and fifty feet in length, or (3) film but excluding incidental charges such as credit against the tax due on his sale of more than twenty-five feet in length and such automotive equipment. transportation, installation, etc.) and more than thirty millimeters in width or attaches at the time when title passes § 410.101-3 Radio, television, an# mu­ (4) unperforated microfilm.) from the seller. The lease of supplies is sical equipment. A tax of 10 percent is § 410.101-8 Business and store ma­ considered a sale for purposes of this tax. imposed with respect to sales of the fol­ chines. A tax of 10 percent is imposed hi the case of any supplies classifiable lowing supplies (including, except in the with respect to sales of business and store under more than one retailers’ excise case of musical instruments, parts, or machines, excluding cash registers of tax, only one tax on such supplies is im­ accessories sold therewith): the types used in registering over-the- posed; and where the tax rates differ, (a) Radio receiving sets, automobile counter retail sales. the supplies are subject to tax at the radio receiving sets, television receiving highest rate. §410.101-9 Electric light bulbs and sets, automobile television receiving sets, § 410.102-1 Jewelry, etc. A tax of 10 phonographs, and combinations of any tubes. A tax of 10 percent is imposed with respect to sales of electric light percent is imposed with respect to sales of the foregoing; of all supplies commonly or commercially (b) Chassis, cabinets, tubes, power bulbs and tubes, excluding supplies tax­ able under any other manufacturers' known as jewelry, whether real or imi­ supply units, speakers, amplifiers, an­ excise tax.. tation; pearls, precious and semi-pre­ tennae of the “built-in” type, and phono­ cious stones, and imitations thereof; graph mechanisms, suitable for use in § 410.101-10 Firearms, shells, and supplies made of, or ornamented, connection with, or as component parts cartridges. A tax of 11 per centum is mounted or fitted with precious metals of, any of the supplies enumerated in imposed, with respect to sales of firearms or imitations thereof; watches and paragraph (a) of this section, whether (except pistols and revolvers, as to which clocks, and cases and movements there­ or not primarily adapted for such use; see § 410.103), shells and cartridges. for; gold, gold-plated, silver or sterling (c) Phonograph records; § 410.101-11 M atches. A tax of 2 flatware or hollow ware, and silver- (d) Musical instruments. cents per 1,000 is imposed with respect plated hollow ware; opera glasses, lorg­ § 410.101-4 Refrigerating, quick- to salés of matches, but not more than nettes; marine glasses, field glasses, and. freezing and air-conditioning equipment. 10 per centum of the price for which similar optical instruments, if portable. A tax is imposed with respect to sales of sold, except that in the case of fancy The tax does not apply to religious ar­ the following supplies (including parts wooden matches having a stained, dyed, ticles, surgical Instruments, watches de­ or accessories sold therewith) at the or colored stick or stem, packed in boxes signed especially for use by the blind, indicated rates: or in bulk, the tax is 5 ^ cents per 1,000 frames or mountings for eyeglasses, or (a) Household type refrigerators (for matches. devices prescribed for use in connection with the uniforms of the Armed Services. single or multiple cabinet installations) § 410.101-12 Fountain and ball point having, or designed for use with, a me­ pens, mechanical pencils, and mechanical § 410.102-2 Furs. A tax of 10 per­ chanical refrigerating unit operated by lighters for cigarettes, cigars, and pipes. cent is imposed with respect to sales of electricity, gas, kerosene, or gasoline; A tax of 10 per centum is imposed with supplies made of fur on the hide or pelt, household type units for the quick-freez­ respect to sales of fountain and ball and sales of supplies of which such fur is ing or frozen storage of foods, operated point pens, mechanical pencils, and me­ the component of chief value—that is, by electricity, gas, kerosene, or gasoline; chanical lighters for cigarettes, cigars, a value three times that of the next most and combinations of such household type and pipes. valuable component. The tax applies refrigerators and units—5 percent; although the pelt is furnished by the (b) Cabinets, compressors, condens­ § 410.101-13. Gasoline. A tax of 2 customer. ers, condensing units, evaporators, ex­ cents a gallon is imposed with respect to pansion units, absorbers, and controls sales of gasoline by the producer or im­ § 410.102-3 Toilet goods. A tax of for, or suitable for use as parts of or porter thereof, or by any producer of 10 percent is imposed with respect to with, the supplies described in paragraph gasoline through March 31, 1955; there­ sales of perfumes, cosmetics, hair dress­ (a) of this section, except when sold as after the applicable tax will be 1 y2 cents ings, and any other similar toilet component parts of complete refrigera­ a gallon. The term “gasoline” means supplies. tors or refrigerating or cooling appara­ all products commonly or commercially § 410.102-4 Luggage. A tax of 10 tus or quick-freeze units—5 percent; known or sold as gasoline (including percent is imposed with respect to sales (c) Self-contained air-conditioning casing head and natural gasoline). of the following supplies (including units—10 percent. Sales of lubricating oils to a manufac­ fittings or accessories sold therewith): turer or producer for resale by him are (a) Trunks, suitcases, hat boxes for § 410.101-5 Sporting goods. A tax exempt from tax. Products taxable as use of travelers, brief cases made of of 10 percent is imposed with respect to gasoline are not taxable under section leather or imitation leather, and any sales of sporting goods and equipment. 2450 of the Internal Revenue Code de­ other similar items of luggage; § 410.101-6 Electric, gas, and oil ap­ scribed in § 410.108. (b) Purses, handbags, wallets, and pliances. A tax of 5 percent is imposed § 410.101-14 Lubricating oils. A tax card, pass, and key cases; with respect to sales of electric, gas, and of 6 cents a gallon is imposed with re­ (c) Toilet cases and other bags and oil appliances such as fans, heaters spect to lubricating oils, except that in kits (without regard to size, shape, con­ (other than electric air furnaces), cook­ the case of cutting oils, the tax shall not struction, or material) for use in carry­ ing appliances, etc. exceed 10 per centum of the price for ing toilet articles or wearing apparel. . § 410.101-7 Photographic apparatus. which so sold. The term “cutting oils” § 410.103 Excise tax on pistols and A tax is imposed with respect to sales means oils used primarily in cutting and revolvers. Chapter 25A of the Internal of the following supplies at the indicated machining operations (including forging, Revenue Code, as implemented by rates: drawing, rolling, shearing, punching, and Treasury Regulations 47, imposes an ex­ (a) Cameras and camera lenses—10 stamping) on metals, and known com­ cise tax of 10 percent upon pistols and percent. (This tax does not apply to (1) mercially as cutting oils. revolvers sold or leased by the manu­ X-ray cameras, (2) cameras weighing § 410.102 Retailers’ excise taxes. facturer, producer, or importer. more than four pounds exclusive of Chapters 9A and 19 of the Internal Rev­ §410.104 Tax on transportation of lenses and accessories, (3) still camera enue Code, as implemented by Treasury persons. Chapter 30C of the Internal 5892 RULES AND REGULATIONS

Revenue Code, as Implemented by powered highway vehicle, for use as a vehicle, motorboat, or airplane for use fuel in such vehicle, or as a fuel for the propulsion of such motor Treasury Regulations 42P, imposes a vehicle, motorboat, or airplane; or tax of 10 percent (a) upon the amount (2) Used by any person as a fuel in a paid within the United States for the diesel-powered highway vehicle unless (2) Used by any person as a fuel for transportation of persons by rail, motor there was a taxable sale of such liquid the propulsion of a motor vehicle, motor- vehicle, water, or air, within or without under subparagraph (1) of this boat, or airplane unless there was a tax­ the United States, and (b) upon the paragraph. able sale of such liquid under subpara­ amount paid without the United States (b) Special Motor Fuels—benzol, ben­ graph (1) of this paragraph. for the transportation of persons by rail, zene, naphtha, liquid petroleum gas, or 3. Section 410.199 List of supplies and motor vehicle, water, or air which begins any other liquid (other than kerosene, services subject to Federal excise taxes, is amended to read as follows: and ends in the United States, and for gas oil, or fuel oil) — seating or sleeping accommodations in (1) Sold by any person to an owner, § 410.199 List of supplies and services connection with such transportation lessee, or other operator of a motor subject to Federal excise taxes. under paragraphs (a) and (b) of this section: Provided, That this tax shall Internal Rev­ Treasury not apply with respect to any part of enue Onde Regulations ASPR Para- Supplies and services . Section (26 Number and graph such transportation which is outside the U. S. Code) Section northern portion of the Western Hemi­ sphere. In computing such tax, there 3403 46-316,50 410.101-2 is excluded (1) separable and itemized 3406 (à) (6) 46-316.140 410.101-8 charges other than those for transporta­ 3465 42-130.30 410.107 3406 (a) (3) 46-316.110 410.101-6 tion of a person, (2) charges for trans­ 3406 (a) (10) 46-316.180 410.101-9 portation of freight that includes also 3407 46-316.80 410.101-10 3408 46-316.196 410.101-12 transportation of caretakers or messen­ 2401 51-320.40 410.102-2 gers for which no specific charge as such 3412 44-314.30 410.101-13 is made, and (3) charges not exceeding 2400 51-320.30 410.102-1 1651 51-320.60 410.102-4 35 cents, certain commutation tickets, 3409 44-314.50 410.101-11 and charges for transportation by motor 2413 44-314.40 410.101-14 3406 (a) (4) 46-316.120 410.101-7 vehicles with seating capacity of less 2700 47 410.103 than 10 persons and not operated on an Radiol television, and musical equipment (see also 410.203 and 410.204 for communication, detection, or navigation receivers and com- established line. 3404 46-316.16 410.101-3 * * • * * 3405 46-316.70 410.101-4 2450 119-321.10 410.108 § 410.107 Tax on communication fa­ 3406 (a) (1) 46-316.90 410.101-5 cilities. Chapter 30B of the Internal 3400 46-316.30 410.101-1 2402 51-340.50 410.102-3 Revenue Code, as implemented by Treas­ 3460 42-130.20 410.106 ury Regulations 42E, imposes a tax upon 3469 42-130.50 410.104 the following types of communication 3475 113-143.0 410.105 facilities at the indicated rates: (a) Telephone and radio telephone 4. Sections 410.204 and 410.205 have is available from manufacturers’ excise messages paid for within the United been revised to read as follows: taxes with respect to sales by the manu­ States (excluding any such messages for facturer of any component named in which the toll charge is 24 cents or § 410.204 Communication, detection, such section for use by his vendee as less)—10 percent; or navigation receivers and components material in the manufacture or produc­ (b) Domestic or international tele­ thereof. tion of or as a component part of a com­ graph, cable, and radio dispatches and § 410.204-1 Receivers. Pursuant to munication, detection, or navigation re­ messages paid for within the United the authority of section 3404 (a) of the ceiver if such receiver is to be sold by States—10 percent; Internal Revenue Code and applicable such vendee to the United States for its (c) Leased wire, teletypewriter, or Treasury Regulations, exemption is exclusive use. To establish the right to talking circuit special services (exclud­ available for manufacturers’ excise exemption from the tax with respect to ing any amount paid for such services taxes with respect to sales to the United such sales, the manufacturer must ob­ used exclusively in rendering a service States for its exclusive use of a com­ tain from his vendee prior to or at the taxable under paragraph (d) of this munication, detection, or navigation re­ time of the sale, and retain in his posses­ section)—10 percent; ceiver of the type used in commercial, sion, a certificate in the form prescribed (d) Wire and equipment service (in­ military, or marine installation. To by the applicable Treasury Regulation cluding stock quotation and information establish the right to exemption from showing that the article is to be used by service, burglar alarm or fire alarm serv­ tax with respect to such sales, the appli­ his vendee for the purpose mentioned ice, and all other similar services except cable Treasury Regulation requires that above. This exemption shall be made services taxable under paragraph (c) the manufacturer (a) have in his pos­ use of by means of purchase on a tax- of this section)—8 percent; session a copy of the prime contract, exclusive basis, only when, and in accord­ (e) Local telephone service and other subcontract, or Government purchase ance with procedures prescribed by each telephone service not taxable under par­ order under which the sale to the United respective Department, it is advantage­ agraphs (a) to (d) of this section (ex­ States is made by him directly or ous to make use of such exemption. cluding amounts paid for the installation through the Prime Contractor or (b) in of instruments, wires, poles, switch­ § 410.205 Supplies' sold for further the absence of such contract or purchase manufacture. Pursuant to the author­ boards, apparatus, and equipment)—10 order, obtain from the Contracting percent. ity of section 3442 of the Internal Reve­ Officer and retain in his possession a nue Code and applicable Treasury I 410.108 Excise tax on special fuels. properly executed exemption certificate Regulations, exemption is available from Chapter 20 of the Internal Revenue Code, in the form prescribed by the applicable manufacturers’ excise taxes with respect as implemented by Treasury Regulations Treasury Regulation. This exemption to sales of any supplies other than tires, 119, imposes an excise tax of 2 cents per shall be made use of by means of pur­ inner tubes, and automobile radios (a) gallon through March 31, 1955 and IV2 chase on a tax-exclusive basis, only for use in the manufacture or production cents per gallon thereafter on certain when, and in accordance with proce­ of taxable supplies or as component special fuels (other than any product dures prescribed by each respective De­ parts thereof, or (b) for resale for such taxable under section 3412 of chapter 29 partment, it is advantageous to make use, which exemption is obtainable by of the Internal Revenue Code and de­ use of such exemption. the manufacturer and requires no action scribed in § 410.101-13) as indicated: § 410.204-2 Components. Pursuant by the Contracting Officer. The con­ (a) Diesel Fuel—any liquid— to the authority of section 3404 (b) of tract price for such supplies purchased (1) Sold by any person to an owner, the Internal Revenue Code and appli­ by any Department shall not include an lessee, or other operator of a diesel- cable Treasury Regulations, exemption amount for any manufacturers’ excise Saturday, September 11, 1954 FEDERAL REGISTER 5893 tax from which an exemption is available § 254.4 Purposes for which lands may 18 months after issuance will be vacated to the manufacturer. be acquired, (a) Qualified applicants are and the land restored to its former (Sec. 1, 54 Stat. 712, as amended, sec. 201, 55 permitted by the act to acquire available status. Stat. 839, 62 Stat. 20; 50 U. S. C. App. 1171, lands for use for any public purposes for 611, 41 U. S. C. 151-161; E. O. 9001, 6 P. R. which they are authorized by their cre­ § 254.7 Applications, (a) Applicants 6787, as amended by E. O. 9296, 8 P. R. 1429; ating authority to hold lands. Non­ under the act must submit, in triplicate, 3 CFR, 1943 Cum Supp.) profit associations and nonprofit cor­ to the appropriate office of the Bureau of Land Management an application on T . P . P ik e , porations are permitted, in addition, to Assistant Secretary of Defense acquire lands for use for any recreational Form 4-1267, executed in accordance with the instructions on the form. Each (Supply and Logistics). purpose consistent with their creating authority. application must be accompanied by (1) [P. R. Doc. 54-7116; Piled, Sept. 10, 1954; three copies of a statement describing 8:46 a. m.] (b) No applicant can secure lands un­ der the act, however, for any use au­ the proposed use of the lands, showing thorized under any other public land law. that the application involves an estab­ TITLE 43— PUBLIC LANDS: This restriction does not apply to the lished or definitely proposed project, and use of lands for residence, business, giving as much detail concerning the INTERIOR recreation, and community-site purposes plan of development and improvement of the project as is necessary to describe Chapter I—-Bureau of Land Manage­ authorized by the act of June 1, 1938 (52 Stat. 609; 43 U. S. C., 682a, Part 257 the project and its purpose adequately ment, Department of the Interior of this chapter) as. amended. and the proposed disposition of any rev­ [Circular 1880] enues to be realized from it and (2) a § 254.5 General limitations and con­ filing fee of $10. Part 254—S ale, Grant, or L ease op P ub­ ditions on dispositions, (a) Applicants (b) The acreage applied for in any lic Lands for R ecreation and P ublic will not be granted title to or use of land one application for patent cannot exceed P urposes under the act unless and until (1) the 640 acres and no more than 640 acres land is first classified as suitable for the Part 254 is completely revised as fol­ will be conveyed to any one grantee in purpose sought and not needed for any any one calendar year. lows effective 30 days after approval other public purpose or is not more val­ hereof by the Secretary of the Interior; uable and suitable for some other use, § 254.8 Purchase price and lease Sec. including the development of power; rentals, (a) Conveyances under the act 254.1 Statutory authority. and, (2) J f the land is under the juris­ for historic monument purposes will be 254.2 Who may apply. made without any monetary considera­ 254.3 Lands subject to disposition. diction of any agency or instrumentality 254.4 Purposes for which lands may be outside the Department of the Interior, tion. acquired. that agency or instrumentality consents (b) Sales to nonprofit associations or 254.5 General limitations and conditions to the proposed disposition. nonprofit corporations for other than on dispositions. (b) Applicants will not be granted historic monument purposes will be 254.6 Classifications. title to or use of land under the act ex­ made at prices fixed through appraisal 254.7 Applications. cept for an established or definitely pro­ of the fair market value of the land, 254.8 Purchase price and lease rentals. posed project. A definitely proposed taking into consideration the purposes 254.9 Lease provisions. 254.10 Publications; protests; patents; project is a project which has been au­ for which the lands will be used. transfers. thorized by competent authority irre­ (c) All other sales will be made at 254.11 Applications for transfer, change of spective of whether or not it has been prices fixed through (1) appraisal of the use, and for renewal of leases. financed and otherwise fully- imple­ fair market value of the lands or other­ 254.12 Lands patented Tinder prior acts; mented, providing that there exists the wise, taking into consideration the pur­ applications for transfer and probability that it will be fully imple­ pose for which the land will be used or change of use. mented within a reasonable time. (2) any method which considers the 254.13 Cooperation with the National Park Service. (c) No applicant can receive under the purpose for which the land will be used. 254.14 Minerals; timber. act patent for more than 640 acres in (d) Annual rentals under leases-will 254.15 Appeals. any one calendar year. be fair and reasonable and will be based (d) No patent will be issued under the on the value of the lands as determined Authority: §§ 254.1 to 254.14 issued under 44 Stat. 741, 68 Stat. 173; 43 U. S. C. 869. act unless and until the land is officially by the requirements of paragraphs (b) surveyed. and (c) of this section. § 254.1 Statutory authority. The (e) All leases and patents issued un­ (e) A patent applicant, when the land act of June 14, 1926 (44 Stat. 741), as der the act will reserve to the United has been appraised, will be required to amended by the act of June 4, 1954 (68 States all minerals, together withN the pay the full purchase price before the Stat. 173; 43 U. S. C. 869), authorizes right to mine and remove the same under patent will be issued. The rental under the Secretary of the Interior, under applicable laws and regulations to be a lease shall be payable annually in ad­ specified conditions, to lease or sell lands established by the Secretary of the vance. Upon appraisal of the land, a for recreational and public purposes. Interior. lease applicant will be required to pay This legislation is referred to as “the (f ) Municipal corporations cannot se­ the first year’s rental before the lease act” in these regulations in this part. cure land under this act if it is not will be issued. Upon the voluntary re­ § 254.2 Who may apply. The follow­ within convenient access to the munici­ linquishment of a lease before the ex­ ing are qualified to make applications pality and within the same State or piration of its term, any rental paid for under the act: States and the Territory Territory as the municipality. Other the unexpired portion of the term will of Alaska; Federal, State, and Territory qualified applicants cannot secure land be returned to the lessee upon a proper of Alaska instrumentalities, and political outside of their political boundaries or application for repayment to the extent subdivisions, including counties and other area of jurisdiction. that the amount paid covers a full lease municipalities; and nonprofit associa­ § 254.6 Classifications, (a) Lands in year or years of the remainder of the tions and nonprofit corporations. Alaska classified under the act and lands term of the original lease. in the States classified pursuant to the § 254.3 Lands subject to disposition. § 254.9 Lease provisions, (a) The The act is applicable to any public act under section 7 of the act of June 28, 1934 (48 Stat. 1272, 43 U. S. C. 315f), term of leases under the act will be fixed domain lands except (a) lands with­ by the authorized official but will not drawn or reserved for national forests, as amended, will be segregated from all national parks and monuments, and appropriations, including locations un­ exceed 20 years. Leases will be renew­ national wildlife refuges; (b) Oregon and der the mining laws, except as provided able at the discretion of such official. California revested railroad grant lands in the order of classification or in any (b) Leases will be issued on Form and Coos Bay reconveyed wagon-road modification or revision thereof. 4-1270 and will contain the usual terms grant lands; and (c) Indian lands and (b) Classifications made pursuant to and conditions required by law, public lands set aside or held for use by or the the act on the motion of the Government policy, and, insofar as possible, by De­ benefit of Indians. for which no application is filed within partment of the Interior procedure. 5894 RULES AND REGULATIONS

(c) Leases will contain such terms and (d) Applications for removal of leases quencies in the bands 4187-4238 kc, conditions which the signing officer or must be accompanied by three copies of 6280.5-6357 kc, 8374r-8476 kc, 12561- the administering agency considers nec­ a statement showing, in detail sufficient 12714 kc, 16748-16952 kc and 22270- essary for the proper development of to describe the situation adequately, the 22400 kc; Docket No. 10582. the land, for the protection of Federal past use of the lands and the proposed At a session of the Federal Commu­ property, and for the protection of the use after renewal of the lease. nications Commission held at its offices public interests. (e) Each application must be accom­ in Washington, D. C., on the 1st day (d) Leases will be terminable by the panied by a filing fee of $10. of September 1954; authorized official upon failure of the (f) Prior to approval of an applica­ The Commission having under con­ lessee to comply with the terms of the tion filed under paragraph (b) of this sideration its proposal in the above en­ lease, upon a finding that all or part of section the land may be reappraised in titled matter to make the bands indi­ the land is being devoted -to other than accordance with § 254.8 and the benefi­ cated available only for cargo ship the use authorized by the lease, or upon ciary required to make such payments as radiotelegraph working purposes in ac­ a finding that the land has not been used are found justified by such reappraisal. cordance with the Geneva Agreement by the lessee for the purpose specified in § 254.12 Lands patented under prior (1951); and the lease for any consecutive period spec­ acts; applications for transfer and It appearing, that in accordance with ified by the authorized official but not change of use. (a) Applications under •the requirements of section 4 (a) of the more than 5 years or less than 2 years. section 4 of the act for permission to Administrative Procedure Act, notice of (e) Leases will not be transferable ex­ transfer title or to change the use in proposed rule making in this matter cept with the consent of the proper offi­ respect to land covered by any patent which made provision for the submis­ cial. Transferees must meet all the issued prior to June 4,1954, must be sub­ sion of written comments by interested qualifications of applicants under the mitted in conformance with § 254.11. parties, was duly published in the F ed­ act and will be subject to all the terms (b) The land, however, will not be eral R egister on July 17, 1953 (18 F . R. and conditions of the regulations in this subject to reappraisal and the benefici­ 4199) and that the period for the filing part. ary will not be required to make any of comments has now expired; and § 254.10 Publications: protests: pat­ payment other than the filing fee. It further appearing, that no com­ ments were filed in this matter; and ents: transfers, (a) Applicants for pat­ § 254.13 Cooperation with the Na­ ents under the act will be required upon It further appearing, that the public tional Park Service. In furtherance of interest, convenience, and necessity will demand to publish once a week for four the purposes of the act of June 23, 1936 consecutive weeks in accordance with be served by the amendment herein or­ (49 Stat. 1894; 16 U. S. C. 17k), the dered, the authority for which is con­ § 106.18 of this chapter, at their expense, National Park Service will review and in a designated newspaper and in a des­ tained in sections 303 (c), (f ) and (r) of make recommendations on all applica­ the Communications Act of 1934, as ignated form, a notice allowing all per­ tions for recreational purposes submitted sons claiming the land adversely to file amended ; by States and the Territory of Alaska It is ordered, That, effective October in the appropriate office their objections or their political subdivisions. to the issuance of patent under the ap­ 11, 1954, Part 2 of the Commission’s plications. A protestant must serve on § 254.14 Minerals; timber, (a) Any rules is amended as set forth below. the applicant a copy of the objections minerals subject to the leasing laws re­ (Sec. 303, 48 Stat. 1082, as amended; 47 and furnish evidence of such service./ served to the United States in the lands U. S. C. 303) (b) Such applicants must file a state­ patented or leases under the terms of Released: September 7, 1954. ment of the publisher, accompanied by the act may be disposed of to any quali­ a copy of the notice published, showing fied person under applicable laws and F ederal Communications that publication has been had for the regulations. Until rules and regulations Commission, required time. are issued, other minerals are not sub­ [ seal] Mary J ane Morris, (c) All patents under this act will ject to disposition or to prospecting ex­ Secretary. contain a clause providing that if the cept by an authorized Federal agency. Delete the present wording of foot­ patentee or its successor attempts to (b) A lessee under the act will not be note 2 to §2.104 (a) (3) (i) and (iii) transfer title to or control over the lands permitted to cut timber from the leased and in lieu thereof substitute new foot­ to another or the lands are devoted to a lands without prior permission from the note 2 as follows: appropriate officer. use other than that for which the lands *The provisions of this section, except for were conveyed, without consent of com­ § 254.15 Appeals. An appeal pursu­ frequencies authorized to aircraft for com­ petent authority, title shall revert to the ant to the rules of practice, Part 221 of munication with foreign stations, do not United States. This clause will termi­ this chapter, may be taken from the de­ apply for the authorization of frequencies nate 25 years after issuance of the pat­ cision of the authorized officer of the within the following frequency bands: ent. Transferees must meet all the Bureau of Land Management. ' K c Kc qualifications of applicants under the act 2035-2107 9040-9700 and will be "subject to the terms and Clarence A. Davis, 3500-4063 9775-10,005 conditions of the regulations in this part. Acting Secretary of the Interior. 4177-4238 11,000- 11,100 5450-5480 11,700-11,900 S eptember 3, 1954. § 254.11 Applications for transfer, 5500-5550 12,531-12,714 change of use, and for renewal of leases. [F. R. Doc. 54-7122; Filed, Sept. 10, 1954; 6000-6200 14,000-15,010 (a) Applications under the act for per­ 8:47 a. m.] 6265.5-6357 15,100-15,350 mission to add to, or to change the use 7000-7300 16,708-16,952 specified in a lease or patent, applica­ 8354-8476 19,990-25,000 TITLE 47— TELECOMMUNI­ tions to transfer title or lease to a third [F. R. Doc. 54-7151; Filed, Sept. 10, 1954; party, and applications for renewal of a CATION 8:52 a. m.] lease must be filed in triplicate with the appropriate office of thé Bureau of Land Chapter I— Federal Communications Management. No form is specified but Commission the matter should be fully explained by [Docket No. 11092; FCO 54-1123] the applicant. [Docket No. 10582; FCO 54-1118] (b) Applications for permission to add [Rules Amdt. 2-20] [Rules Amdt. 3-19] to or to change use must be accompanied P art 2— F requency Allocations and P art 3—R adio B roadcast S ervices by three copies of the showing required R adio T reaty M atters ; G eneral broadcasts b y candidates for public by § 254.7 (a) (1). R ules and R egulations (c) Applications for approval of trans­ OFFICE fers of title or lease must be accom­ FREQUENCY ALLOCATIONS In the matter of amendment of the panied by three copies of Form 4-1267 In the matter of amendment of Part rules governing broadcasts by candidates executed by the proposed transferee in 2 of the Commission’s rules and regu­ for public office: AM, § 3.190; FM, §3.290; accordance with § 254.7. lations concerning the allocation of fre­ TV. § 3.657; Docket No. 11092. Saturday, September 11, 1954 FEDERAL REGISTER 5895

1. The Commission has under consid­ point out an ambiguity in the existing ities. This does not mean that they eration its notice, of proposed rule mak­ proposal and to obviate this we have must be given equal time, or even that ing issued June 25, 1954 (FCC 54-795) modified paragraph (c) (1) of the rates they must be charged the same rates proposing to amend §§ 3.190, 3.290 and to provide that a candidate, in each if, though the station makes the oppor­ 3.657 of the Commission’s rules and case, shall be charged no more than the tunity available to all, only some of the regulations which relate to the rates rate the station would charge if the competing candidates choose to pur­ charged by broadcast stations for broad­ candidate were a commercial advertiser chase enough time to take advantage of casts made by candidates for public Whose advertising was directed to pro­ available discount rates. But we think office. The purpose of the proposed moting its business within the same area it clear that the individual equality amendments is to implement section 315 as that encompassed by the particular among competing candidates can only be of the Communications Act, as revised, office for which such person is a candi­ achieved if any one candidate, by doing to insure that candidates for public date. We believe this revision will en­ and spending no more than his individual office are afforded the opportunity to able station licensees to determine which opponent, can secure equal air time. To use the facilities of broadcast stations at of its commercial rates is generally provide otherwisce, as the NARTB and a rate no higher than the stations would charged in the area encompassed by the Southern Idaho Broadcasting and Tele­ charge commercial advertisers under office for which a particular candidate vision have suggested, would substitute comparable circumstances. Interested is running and to make a good faith equality among groups or political parties were invited to submit written judgment in the case of each individual parties for the criterion of individual comments on the proposal; and in re­ candidate as to the applicable commer­ equality among candidates. Whatever sponse, the California Inland Broadcast­ cial rate to be charged. we may think of this as an abstract ques­ ing Company, Fresno, California; the 3. The comments of the National As­tion of policy, it is not what we under­ National Association of Radio and Tele­ sociation of Radio and Television Broad­ stand Congress intended in section 315. vision Broadcasters; the Aiken Elec­ casters (NARTB) and Southern Idaho 4. Finally, Southern Idaho also sug­ tronics Adv. Corporation, Aiken, South Broadcasting and Television Company gests that the use of the words “equal Carolina, and 34 other parties set forth are both directed to the question of how terms” in the last sentence of the pro­ below; the Tennessee Valley Broadcast­ discount rates are to be calculated under posed subparagraph (c) (1) might be ing Co., Decatur, Alabama, and 35 other the proposed rule in circumstances where misconstrued as requiring equal rates parties set forth below and the Southern time has been purchased by or for one regardless of any differences in the Idaho Broadcasting and Television Com­ candidate as part of a bulk purchase of amount of time purchased by individual pany, Twin Falls, Idaho, have filed time which has resulted in making the candidates. It suggests that the lan­ comments. While none of the parties cost to such candidate less than if he guage “upon terms comparable to those express opposition to the proposed had purchased the time actually used charged for commercial advertisers” be amendments, they do recommend that by Him on an individual basis. The substituted. However, we do not believe they be modified or clarified in some NARTB comment is directed to para­ such a misconception is possible. As set respects. The recommendations of the graph 5 of the notice of proposed rule forth above, it is clear that while dis­ parties are considered separately below. making which indicated that where a counts offered to commercial adver­ 2. The comments filed by California group of candidates have pooled their tisers must be afforded as well to Inland Broadcasting Company concern resources to purchase a block of time at individual candidates for public office, the concept of national, regional and discount rates, individual opponents of candidates can secure such discounts local rates as used in the multiple rate such candidates are entitled to secure only by purchase-of the requisite amount structures of stations in the broadcasting the same rates as those charged the in­ of time. The suggested substituted lan­ industry. It contends that the type of dividual member of the group against guage is, in our opinion, less appropriate, business of a commercial advertiser, i. e., whom they are competing. NARTB since its use might lead to a construction manufacturer, distributor,' re ta ile r, urges that this interpretation of the that stations could not afford discounts rather than the area in which he does rates be withdrawn as being unrelated to to political candidates on a non- business, is, in many cases, the impor­ the question of charging candidates rates discriminatory basis over and beyond tant factor : in the determination of comparable to those charged other com­ those offered commercial advertisers—a which rate shall apply to a particular mercial users of time, and because such prohibition not intended by the enact­ commercial account and that, conse­ an interpretation allegedly would dis­ ment of the new section 315 (b) of the quently, the area encompassed by an rupt “the historic pattern of purchase act. advertiser’s business may have no bear­ and sale of broadcast facilities to quali­ 5. Tennessee Valley Broadcasting Co. ing on the rate charged. It therefore fied candidates.” Southern Idaho ap­ and '35 other broadcast licensees main­ envisions that stations may have diffi­ parently does not take issue with the tain that broadcast stations sell no time culty in carrying out the proposed pro­ Commission’s views as to the situation or services “comparable” to that sold visions of paragraph (c) (1), which base where time has been purchased on a political candidates since the Communi­ the rate to be charged a political condi- group or pooled basis by several candi­ cations Act prohibits stations from date upon the rate charged a commer­ dates, but raises the question as to the censoring material broadcast by politi­ cial advertiser whose business is confined applicability of this principle where the cal candidates and thereby exposes sta­ to the same area as the particular office block of time is purchased by a political tion licensees to liability for slanderous for which a candidate is running, and committee or similar group, and indi­ material broadcast by political candi­ suggests that these provisions be clari­ vidual candidates using part of this dates. It is also argued that nothing in fied by an amendment or in the accom­ time are only charged a pro rata share the act expressly requires a station to panying report at the time of adoption. of the total cost. It is contended that charge a political candidate the same It recommends that paragraph (c) ( 1) it would be grossly unfair to stations and rate as a commercial advertiser under be amended to specify that the national purchasers of large segments of time if any circumstances. They urge that if rate shall apply to all political candidates section 315 and our rules are interpreted candidates are to be free from all re­ whose names appear on the ballot in as entitling the opponents of the indi­ straint as to their broadcasts, they more than one county, and the local vidual candidates to the same reduced should be required to indemnify or in­ rate to condidates whose names appear rate which they paid by reason of their sure stations against any loss that may on the ballot in only one county. We connection with the committee, in the be suffered by a station because of their cannot concur in California Inland’s event such opponents were unwilling to broadcasts, or waive their rights under proposed amendment. For, while it purchase a segment of time to which the the law so as to permit stations to cen­ might be advantageous from the stand­ same discount given the Committee ap­ sor their program material. They also point of certainty, this would establish plies. We believe that the answer to suggest the proposed rules be revised to both of these questions becomes apparent state specifically that stations may a purely artificial test for determining when it is recognized that the entire charge candidates for time used to make the applicable rate 'which in specific scheme of section 315 of the act is that recordings, for use of recording ma­ cases might result in charging candi­ opposing legally qualified candidates for chines, equipment, studio facilities, etc. dates rates not comparable to those a particular public office are, as a matter We cannot agree with these suggestions. charged commercial advertisers. We of individual right, entitled to equal op­ We believe that the legislative history believe the comment does, however, portunities in the use of broadcast facil- of section 315 (b) of the Communica- No. 177------3 5896 RULES AND REGULATIONS tions Act makes clear that Congress, al­ this same commercial discount rate KLRC, Lewiston, Idaho. available to the candidate; and equal KOLERO Telecasting Corporation, Mil­ though it was fully aware of the fact waukee, Wis. that licensees could not censor political opportunities must be made available KOTV, Inc., Tulsa, Okla. broadcasts, expressly intended that to opposing candidates. But nothing in KROY, Inc., Sacramento, Calif. neither this nor any other factor should the rule precludes a station from limit­ KVOS, Inc., Bellingham, Wash. be used as an excuse for charging higher ing the total amount of time to be made KXRO, Incorporated, Aberdeen, Wash, rates for political broadcasts than for available to all legally qualified can­ Lake Erie Radio & Television Corp., Belle- other commercial programs. With re­ didates for a particular office as the sta­ fontaine, Ohio. tion licensee determines will best serve Linn County Broadcasters, Inc., Lebanon, spect to the suggestion that stations Oreg. should be specifically authorized to charge the public interest so long as equal op­ Lucille Ross Lansing, Tyler, Tex. candidates for making use of recordings, portunity is afforded all such candidates. Meredith Engineering Co., Phoenix, Ariz., recording apparatus or other equipment, 7. We conclude that the proposed and Kansas City, Mo. etc., we believe it is clear that Congress amendment to §§3.190 (c), 3.290 (c) Meredith Syracuse Radio Corp., Syracuse, intended political candidates may be and 3.657 (c), as revised and set forth N. Y. charged such special fees if, but only if, below, should be adopted. Meredith Syracuse, Television Corp., Syra­ cuse, N. Y. such charges were also applied to other 8. Authority for the adoption of the Meredith WOW, Inc., Omaha, Nebr. users of the station’s facilities. Nothing proposed amendment is contained in Metropolitan Broadcasting & Television, in the rule as drafted or here finalized sections 4 (i); 301; 303 (b), (j) and (r); Inc., New York, N. Y. would preclude a station from charging and 315 (b) and (c) of the Communica­ Mid-America Broadcasting Corp., Louis­ a political candidate additional fees tions Act of 1934, as amended. ville, Ky. under such circumstances. Nor are we 9. Because the imminence of the No­ Montana Parmer Broadcasting Corp., Great authorized under section 315 of the vember elections necessitates putting Falls, Mont. Communications Act to provide that the proposed amendment to §§ 3.190 (c), Nevada Radio & Television, Inc., Reno, Nev. stations may require candidates to in­ 3.290 (c) and 3.657 (c) into effect at the North Pacific Television, Inc., Portland, demnify or insure stations against any earliest possible date, and in view of the Oreg. loss a station might suffer because of the fact that the proposed amendment is Northwest Arkansas Radio & Television contents of a candidate’s broadcasts, or interpretative in nature and that it Co., Springdale, Ark. to waive their rights so as to permit would not be practicable or in the public Odessa Television Co., a Joint Venture censorship of such broadcasts. In fact, interest to provide the usual thirty-day Odessa, Tex. we are extremely doubtful whether it period between the adoption of this re­ Okmulgee Broadcasting Corp., Okmulgee, would be lawful under section 315 (b) of port and order and the effective date of Okla. Tom Olsen, Olympia, Wash. the Communications Act for a station to the amendment to the foregoing rules Pioneer Broadcasters, Inc., Portland, Oreg. impose upon candidates for public office provided by section 4 (c) of the Ad­ Post Publishing Co., Boston, Mass. such an obligation to provide bonds or ministrative Procedure Act, these rule Prairie Television Co., Decatur, 111. insurance unless they also require other changes may, and should, be made ef­ Premier Television, Inc., Evansville, Ind. users of their stations to post similar fective immediately. Pursley Broadcasting Service, Inc., Mobile, indemnity bonds or insurance. 10. Therefore, it is ordered, That, ef­ Ala. 6. Aiken Electronics Adv. Corporationfective immediately, Part 3 of the Com­ Radion Broadcasting, Inc., Corona, Calif. and 34 other broadcasting companies mission’s Rules is amended to read as Sacramento Telecasters, Inc., Sacramento, Calif. filed comments suggesting one change set forth below. Salt Lake City Broadcasting Co., Inc., Salt in the last sentence of subparagraph (Sec. 4, 48 Stat. 1066 as amended; 47 U. S. O. Lake City, Utah. (c) ( 1) of the proposed rules, which 154. Interpret or apply secs. 301, 303, 315, The Sandhill Community Broadcasters, provides that “All discount privileges 48 Stat. 1081, 1082, as amended, 1088; 47 Inc., Southern Pines, N. C. otherwise offered by a station to com­ U. S. C. 301, 303, 315) Sir Walter Television Company, Raleigh, mercial advertisers shall be available N. C. upon equal terms to all candidates for Adopted; September 2, 1954. South Central Kentucky Broadcasting Co., Campbellsville, Ky. public office.” They recommend that Released: September 7, 1954. Southern California Broadcasting Co., the sentence be clarified by adding to F ederal Communications Pasadena, Calif. the end thereof the following proviso: C ommission, Southwestern Publishing Co., Inc., Hen­ “Provided, however, That this regula­ [ seal] Mary J ane M orris, derson, Nev. tion shall not be construed as requiring Secretary. Southwestern Radio & Television Co., a licensee to allot time in such amount Port Smith, Ark., for political broadcasts as would be in 1. The 34 other parties filing the com­ Television East Bay, Oakland, Calif. ment with Aiken Electronics Adv. Cor­ Utah Broadcasting & Television Corp., excess of that which, in the licensee’s Salt Lake City, Utah. judgment, would be consistent with bal­ poration are the following: Valley Broadcasting Co., San Jose, Calif. anced programming.” Roy L. Albertson, Buffalo, N. Y. Wabash Valley Broadcasting Corp., Terre W. Gordon Allen, John B. Truhan, Justin. Haute, Ind. Without such a proviso, they submit, H. Clark, Salem, Greg. Wescoast Broadcasting Co., Wenatchee, the sentence might be construed as a Bankers Life & Casualty Company, Chi­ Wash. directive to licensees to sell enough time cago, 111. Wespen Television, Inc., Irwin, Pa. to political candidates so that some form Broadcasters of Burbank, Inc., Burbank^ Western Empire Broadcasters, Inc., San of quantity discount rate is brought into Calif. Bernardino, Calif. play. We do not believe the sentence Consolidated Broadcasting Co., Pasadena, 2. The other parties signing the com­ lends itself to that construction. Calif. Golden Empire Broadcasting Company, ment filed by Tennessee Valley Broad­ Whether a quantity discount rate is casting Company are the following: brought into play is wholly dependent Chico and Redding, Calif. Gothan Broadcasting Corporation, New Anniston Broadcasting Co. (WHMA). upon a licensee’s commercial quantity York, N. Y. Western Broadcasting Co. (K1FN). discount rate structure and the use Grand Island Broadcasting Company, Benton Broadcasting Service (KBBA). which a licensee permits of his station Grand Island, Nebr. Forrest City Broadcasting Co. (K XJK ). by the first candidate for a particular Great Lakes Television Company, Erie, Pa. George Basil Anderson (KLIR). public office who desires to buy time Hanford Broadcasting Co. of California, George Basil Anderson (K X JK ). on the air. It is within the licensee’s Hanford, Calif. George Basil Anderson (KJRG). discretion to allot only such time as he Hurricane Broadcasting Corporation, Port Hillsboro Broadcasting Co. (WEBK). Pierce, Fla. . Robert Hecksher (WMYR). * believes in keeping with good program­ Iron City Broadcasting Co., Ironton, Ohio. Walton Broadcasting Co. (WMRE). ming practices to the first candidate for Interstate Corporation, Ogden, Utah. Jack Thompson and Nancy Thompson a particular offipe who desires to buy KCOR, Inc., San Antonio, Tex. (WJAT). - time. If a licensee provides sufficient Kiggins & Rollins, Anchorage and Fair­ . Belleville Broadcasting Co. (wlBV). time to this candidate to bring into play banks, Alaska. Elgin Broadcasting Co. (WRMN). a discount rate which would apply if King Broadcasting Company, Seattle, La Salle Broadcasting Corp.

b. in the second column opposite the 3. Amend § 7.601 by modifying the in­ [Docket 10315] item concerning Miami, Florida, and un­ formation contained under Radio District P art 7—Stations on L and in the der the heading “Mobile station trans­ No. 23 to read as follows: M aritime Services mitting carrier frequency” delete 4402.5 P. O. Box 644, and in lieu thereof insert 4122.2. Room 53, P art 9—Aviation S ervices 3. Section 8.355 (a) (1) is amended U. S. P. O. and Courthouse Building, by adding to the table of frequencies the Anchorage, Alaska. P art 10—P ublic S afety R adio S ervices frequency 16,510.4 with a footnote desig­ Sub-Office: P. O. Box 1421, 7-8, P art 11—I ndustrial R adio S ervices nator3; and by inserting table footnote Shattuck Building, 3 to read: Juneau, Alaska. P art 16—L and T ransportation R adio S ervices •For use in communication with public 4. Amend § 7.601 by renumbering the coast stations located in the vicinity of San Regional offices from l*to 7 as follows: operational fixed stations and fixed Francisco, California, Region No. 1, 954 Federal Building, 641 STATIONS IN DOMESTIC FIXED PUBLIC [F. R. Doc. 54-7153; Filed, Sept. 10, 1954; Washington Street, New York 14, N. Y.—To SERVICE 8:53 a. m.] include: Districts Nos. 1, 2, 3, 4, 5, and 24. Region No. 2, 411 Federal Annex, Atlanta, In the matter of a new policy to govern Ga.—To include: Districts Nos. 6, 7, 8, 9, 10 the assignment of frequencies in the and 22. band 72-76 Me to operational fixed sta­ [Rules Arndts. 7-6, 8-8, 12-6; FCC 54-1125] Region No. 3, 323-A Customhouse, San Francisco 26, Calif.—To include: Districts tions and fixed stations in the Domestic Nos. 11, 12, and 15. Fixed Public Service; Docket No. 10315. P art 7—S tations on L and in the The Commission having under con­ M aritime Services Region No. 4, 802 Federal Office Building, Seattle 4, Wash.—To include: Districts Nos. sideration its report and order1 released P art 8— S tations on Shipboard in the 13, 14 and 23. on July 2, 1954, in the above-entitled M aritime S ervices Region No. 5, P. O. Box 1142, Lanikai, Oahu, proceeding which finalized certain T. H.—To include: District No. 21. amendments to the Commission’s rules; P art 12—Amateur R adio S ervice Region No. 6, 832 U. S. Courthouse, Chicago It appearing, that attached to the REGIONAL MANAGERS AND DISTRICT FIELD 4, 111.—To include: Districts Nos. 16, 17 and 18. amended rules were two charts, one for OFFICE AREAS Region No. 7, 1029 New Federal Building, Channel 4 and one for Channel 5, “For In the matter of amendment of Parts Detroit 26, Mich.—To include: Districts Nos. Determining Radius From Fixed Station 7, 8 and 12 of the Commission’s rules and 19 and 20. In 72-76 Me Band To Interference Con­ regulations, modification of Part 7, Ap­ 5. Amend § 8.801 by adding under tour Along Which 10 Percent Of Service pendix 1 (§7.601), Part 8, Appendix 1 Region No. 4: District No. 23'. From Adjacent Television Station Would (§ 8.801) and Part 12, Appendix 1, with 6. Amend § 8.801 by deleting the list­ Be Destroyed”; and reference to Regional Managers and Dis­ ing under Regional Managers: “Region It further appearing, that in each of trict Field Office Areas. No. 6, P. O. Box 644 (Rm. 52 U. S. P. O. those charts an error was made in the At a session of the Federal Communi­ and Courthouse), Anchorage, Alaska— position of the “h” line (Height of Fixed cations Commission held at its offices in To include: District No. 23”. Washington, D. C., on the 2d day of 7. Amend § 8.801 by modifying the in­ Station Antenna) on the chart, and; September 1954; formation contained under Radio Dis­ It further appearing, that since the The Commission having under consid­ trict No. 23 to read as follows: effective date of the amendments to the eration further reduction in the number P. O. Box 644, rules was August 9, 1954, and that few, of Regional Offices and reorganization Room 53, if any, of the applications for fixed sta­ of the area embraced by • its Seattle, U. 6. P. O. and Courthouse Building, tions which have been granted since that Washington, Regional Office and reloca­ Anchorage, Alaska. date would not have been granted had tion of its District office in Juneau, Sub-Office: P. O. Box 1421, 7-8, the charts in question been correct, and Alaska; and Shattuck Building, that, in any event, all fixed operations in It appearing, that the Anchorage, Juneau, Alaska. the 72-76 Me band are subject to the Alaska Regional office should be elim­ 8. Amend § 8.801 by renumbering the condition of no harmfill interference to inated and that the Territory of Alaska Regional offices from 1 to 7 .as follows: television reception on Channels 4 and 5, should be included within the area em­ Region No. 1, 954 Federal Building, 641 braced by the Seattle, Washington Re­ the Commission has determined that it Washington Street, New York 14, N, Y.— To is not necessary to review the applica­ gional office; and include: Districts Nos. 1, 2, 3, 4, 5, and 24. It further appearing, that the District Region No. 2, 411 Federal Anne^, Atlanta, tions that have been granted since the office presently located at Juneau, Alaska Ga.—To include: Districts Nos. 6, 7, 8, 9, 10, amended rules went into effect; and should be transferred to Anchorage, and 22. It further appearing, that the amend­ Alaska and that a District Sub-Office Region No. 3, 323-A Customhouse, San ment in question is editorial in nature be established in Juneau. Francisco 26, Calif.—To include: Districts Nos. 11, 12, and 15. and therefore the provisions of section It is ordered, Pursuant to section 4 (i) Region No. 4, 802 Federal Office Building, 4 of the Administrative Procedure Act and 303 (r) of the Communications Act, Seattle 4, Wash.—To include: Districts Nos. are not applicable and the amendment as amended, and section 3 (a) of the 13, 14 and 23. may be made effective immediately; Administrative Procedure Act that Parts Region No. 5, P. O. Box 1142, Lanikai, It is ordered, Pursuant to the author­ 7, 8 and 12 of the Commission’s rules are Oahu, T. H.—To include: District No. 21. hereby amended effective September 15, Region No. 6, 832 U. S. Courthouse, Chicago ity contained in sections 4 (i) and 301 1954, as set forth below. 4, 111.—To include: Districts Nos. 16, 17 and of the Communications Act of 1934, as 18. amended, the nomographs2 for TV Chan­ (Sec. 4, 48 Stat. 1066 as amended; 47 IT. S. C. Region No. 7, 1029 New Federal Building, nel 4 and TV Channel 5 are amended, 154. Interpret or apply sec. 303, 48 Stat. Detroit 26, Mich.—To include: Districts Nos. 1082, as amended; 47 U. S. C. 303) 19 and 20. effective immediately. Released: September 7, 1954. 9. Amend Part 12—Appendix 1 by Adopted: September 2, 1954. F ederal Communications modifying the information contained Released: September 7, 1954. Commission, under Radio District No. 23 to read as follows: F ederal Communications [ seal] Mary J ane M orris, Commission, Secretary. P. O. Box 644, Room 53, [ seal] M ary J ane M orris, 1. Amend § 7.601 by adding under U. S. P. O. and Courthouse Building, Secretary. Anchorage, Alaska. Region No. 4: District No. 23. [F. R. Doc. 54-7148; Filed, Sept. 10, 1954; 2. Amend § 7.601 by deleting the list­ Sub-Office: P. O. Box 1421, 7-8, 8:51 a. m.] ing under Regional Managers: “Region Shattuck Building, Juneau, Alaska. No. 6, P. O. Box 644 (Rm. 52 U. S. P. O. 1 See F. R. Doc. 54-5204, published July 10, and Courthouse), Anchorage, Alaska— [F. R. Doc. 54-7154; Filed, Sept. 10, 1954; 1954 (19 F. R. 4231). To include: District No. 23” 8:53 a. m j * Filed as part of original document. Saturday, September 11, 1954 FEDERAL REGISTER 5899 [Docket No. 10927; FCC 54-1109] vorable to the retention of the present transmissions and radiotelegraph trans­ [Rules Amdt. 12-5] subdivisions for telephony was on the missions employing carrier shift or other basis that the primary use of the two frequency modulation techniques). P art 12—Amateur R adio Service frequency bands in question is for inter­ 2. Amend § 12.134 to read as follows: national contacts and that the proposed FREQUENCIES AND TYPES OF EMISSION; expansion would decrease their useful­ § 12.134 Modulation of carrier wave. MODULATION OF CARRIER WAVE ness for this purpose for both foreign Except for brief tests or adjustments and In the matter of petitions of the and domestic amateurs regardless of except for operation in the band 26.96 whether telegraphy or telephony would to 27.23 Me, an amateur radiotelephone American Radio Relay League for station shall not emit a carrier wave on amendment of Part 12, Amateur Radio be used. 4. Additionally, is was pointed out frequencies below 51 Me unless modu­ Service; Docket No. 10927. lated for the purpose of communication. 1. As a result of its consideration of that present occupancy of the 28 Me petitions for rule making filed by the band is very light and that when propa­ [F. R. Doc. 54-7155; Filed, Sept. 10, 1954; American Radio Relay League, the Com­ gation conditions again reach the state 8:53 a. m.] mission adopted the notice of proposed where heavy occupancy will be encour­ rule making in this proceeding, and it aged therein, widespread use of the 21 was duly published in the F ederal R egis­ Me band may be expected for the first ter on February 27, 1954 (19 F. R. 1121). time since it was allocated to the ama­ [Docket No. 10778; FCC 54r-1117] The notice contained proposed amend­ teur service, thus offering some relief of [Rules Amdt. 18-4] ments to § 12.111 (d) and (g) to expand congestion in both the 14 and 28 Me the amateur frequency sub-bands 14.20- bands. P art 18—I ndustrial, S cientific and 14.30 and 28.50-29.70 Me presently avail­ 5. In view of the fact that the effect M edical S ervice able for telephonic emissions to 14.20- of the availability of the 21 Me amateur 14.35 and 28.25-29.70 Me, respectively. frequency band upon congestion in the SHORT-WAVE EPILATION EQUIPMENT The notice also contained proposed 14 and 28 Me bands cannot be assessed In the matter of amendment of § 18.51 amendments to §§ 12.111 (h) and 12.134 until some time in the future when of the Commission’s rules concerning use to permit the use of type A0 emission in propagation conditions are such as to of short-wave epilation equipment; the 51.0-54.0 Me portion of the 50.0-54.0 encourage increased activity in the 21 Docket No. 10778. Me amateur frequency band. The peti­ and 28 Me bands, the Commission be­ 1. O n April 16, 1954, the Commission tioner’s request for a mobile-only tele­ lieves it to be in the best interest of released a memorandum opinion and phony sub-band in the 3775-3800 kc the Amateur Service to-defer further order in the above-entitled matter fina l - portion of the 3500-4000 kc amateur consideration of expansion of the 14 and izing a proposed amendment to § 18.51 frequency band was not proposed, but 28 Me sub-bands for telephony. There­ of the Commission’s rules. The Com­ comment “as to the propriety of sub­ fore, the Commission is hereby dismis­ mission’s memorandum opinion and dividing foot only this but also other sing the proposed amendment of § 12.111 order, set forth the amended text of amateur bands and of subdividing the (d) and (g). . § 18.51 and, in part, read as follows: amateur bands for other purposes as well 6. Comments received concerning the “The provisions of this part * * * shall as mobile radiotelephone” was invited. petitioner’s request for novice operation not be applicable until December 31, The petitioner’s request for provision, on in the 50 Me band did not disclose any 1955 for such [epilation] equipment à temporary or trial basis, of additional facts not already considered by the Com­ manufactured between December 31, frequency space in the 50 Me band for mission in making its initial decision 1950 and June 30, 1954 * * *” How­ use by Novice Class operators was not that it would be unwise to propose such ever, the Commission’s notice of proposed proposed on the basis that the Commis­ rule changes at this time. The Com­ rule making and the text of the memo­ sion believed it unwise to permit such mission will, however, consider other randum opinion and order of April 16, operation because the novice, in general, means of encouraging amateur use of 1954, make it abundantly clear that the cannot be expected to have the experi­ the 50 Me frequency band. above-quoted portion of the amended ence and technique to successfully cope 7. The Commission believes that en­ section was intended to read: “The pro­ with the serious problems of interference couragement and improvement of the visions of this part * * * shall not be to television reception likely to result Amateur Radio Service will result from applicable until December 31, 1955 for from operations in the band. the adoption of the amendments provid­ such [epilation] equipment manufac­ 2. Following publication of the notice, ing for the use of A0 emission in the 50 tured between December 31, 1950 and a number of written comments were Me amateur frequency band. These June 30, 1953 * * and that the June received from individual amateurs and amendments- are issued pursuant to au­ 30, 1954 date was a typographical error. amateur organizations. In general, the thority contained in sections 4 (i) and 2. Section 18.51 of the rules is now comments supported provision for A0 303 (f) and (r) of the Communications being amended to correct the typo­ emission in the 50 Me band, opposed Act of 1934, as amended. graphical error. However, while the establishment of a mobile-only sub­ Therefore, it is ordered, That effective Commission believes that the intent of band for telephony at 3775-3800 kc, and 3; 00 a. m., e. s. t., October 15, 1954, the amendment was clear, it is recog­ opposed the subdivision of the amateur § § 12.111 (h) and 12.134 of Part 12; nized that some persons purchasing epi­ bands for other purposes as well as for Amateur Radio Service, are amended as lation equipment may have been misled mobile radiotelephone. The American set forth below. by the typographical error in the text Radio Relay League requested “the of the rule. Therefore, the Commission (Sec. 4, 48 Slat. 1066 as amended; 47 U. S. C. proposes to grant petitions for waiver of withdrawal of its petition * * * seeking 154. Interpret or apply sec. 303, 48 Stat. to establish a mobile voice suballocation 1082, as amended; 47 U. S. C. 303) §18.51 in those instances where it can in 3775 to 3800 kilocycles” and expressed be demonstrated that, during the period “itself as in agreement with the general Adopted; September 1, 1954. between April 16, 1954, and the date on philosophy of the Commission * * * Released: September 7,1954. which this memorandum opinion and that the setting aside of portions of the order was released, persons purchased amateur frequency bands for the use of F ederal Communications epilation equipment manufactured after special groups would not permit the full­ Commission, June 30,1953, and which does not comply est and most diversified use of all fre­ [seal! M ary J ane M orris, with Part 18, in reliance on the error quencies available for amateur radio Secretary. contained in the Commission rules which operation.” 1. Amend § 12.111

Administrative Procedure Act with re­ Section 18.51 of the Commission’s rules to plants in Tennessee and Kentucky spect to notice are not applicable arid the and regulations is amended to read as where it is bottled for distribution to amendment may be made effective im­ follows: consumers. Part of this milk is moved mediately. out of the State directly from the farms. § 18.51 Existing equipment. The pro­ Some of it is received from producers at 4. It is ordered, Pursuant to the au­visions of this part shall not be applica­ thority of sections 4 (i), 301 and 303 (r) country stations in Virginia and moved ble until June 30,1954 to epilation equip­ in bulk to the Tennessee and Kentucky of the Communications Act of 1934, as ment, which uses radio frequency energy amended, that § 18.51 of the Commis­ plants. Milk from Tennessee and Ken­ manufactured before December 31,1950, tucky farms of producers as defined un­ sion’s rules is amended as set forth and shall not be applicable until Decem­ below, effective immediately. der the proposed order likewise finds its ber 31, 1955 for such equipment manu­ way across State boundaries. In addi­ {Sec. 4, 48 Stat. 1066 as amended; 47 U. S. C. factured between December 31,1950 and tion, milk sold for fluid distribution in 154. Interprets or applies secs. 301, 303, 48 June 30, 1953 : Provided, That the fore­ the marketing area is received in tank Stat. 1081, 1082, as amended; 47 ü. S. C. 301, going provisions of this section shall be lots by plants serving the marketing area 303) applicable only if such steps as may be from points in Ohio and Indiana. Adopted: Sèptember 1,1954. necessary are promptly taken to elimi­ Testimony, at the hearing indicates nate interference to authorized radio Released: September 7,1954. that, of the Grade A milk produced in services resulting from the operation of southwestern Virginia which would be F ederal Communications equipment manufactured prior to the priced under the proposed order more Commission, respective dates set forth in this section. than half is distributed outside the [seal] M ary J ane M orris, [F. R. Doc. 54-7156; Piled, Sept. 10, 1954; State. Milk packaged for, retail dis­ Secretary. 8:53 a. m.] tribution is moved from each section of the marketing area (in Virginia, Ten­ nessee, and Kentucky) . across State lines. The greatest volume of interstate movement of milk on routes iri the pro­ PROPOSED RULE MAKING posed area is carried out by the opera­ tion of routes throughout the city of Bristol, which is one of the primary DEPARTMENT OF AGRICULTURE the exceptions, such exceptions are over­ markets of the area. Here the Virginia- ruled. Tpnnessee State line is located along the Agricultural Marketing Service To the extent that suggested findings main street of the city. Milk plants on and conclusions proposed by interested both sides of this line service consumers [ 7 CFR Part 923 1 persons are inconsistent with theffindings throughout the city. Retail and whole­ and conclusions contained herein, the sale routes from plants which would be [Docket No. AO-251] specific or implied requests to make such subject to the order cross the Virginia- H andling op Milk in Appalachian findings and reach such conclusions are Tennessee line elsewhere, and also, the M arketing Area denied on the basis of the facts found Kentucky-Virginia State lines. and stated in connection with the con­ Manufactured milk products made DECISION W ITH RESPECT TO PROPOSED clusions herein set forth. from excess milk in the plants of han­ MARKETING AGREEMENT AND ORDER The material issues of record related dlers are sold in many States through­ to: out the southeastern portion of the Pursuant to the provisions of the 1. Whether the handling of milk in the country. Agricultural Marketing Agreement Act market is in the current of interstate 2. Need for an order. Marketing con­ of 1937, as amended (7. U. S. C. 601 et commerce or directly burdens, obstructs ditions in the Appalachian marketing seq.), and the applicable rules of prac­ or affects interstate commerce in milk area justify the issuance of a marketing tice and procedure, as amended, govern­ or its products; agreement and order. ing proceedings to formulate marketing 2. Whether marketing conditions jus­ There is no overall plan whereby agreements and marketing orders (7 tify the issuance of a marketing agree­ farmers supplying the Appalachian CFR Part 900), a public hearing was ment or order; and marketing area are assured of payment conducted at Bristol, Virginia on Feb­ 3. If an order is issued what its provi­ for their milk in accordance with its use. ruary 1-6 and 8-10, 1954, pursuant to Neither is there a procedure whereby notice thereof which was issued January sions should be with respect to: (a) The scope of regulation; farmers may participate in the price de­ 16, 1954 (19 F. R. 297), upon a proposed terminations throughout the area neces­ marketing agreement and order regulat­ (b) The classification of milk; (c) The level and method of deter­ sary for the marketing of their milk, ing the handling of milk in the Appala­ which because of its perishability must chian marketing area. mining class prices; (d) The method to be used in distrib­ be delivered to the market daily as it is Upon the basis of the evidence intro­ uting proceeds to producers; and produced. duced at the hearing and the record «(e) Administrative provisions. A marketing order as proposed will thereof, the Deputy Administrator, Findings and conclusions. Upon the promote orderly marketing by assuring Agricultural Marketing Service, on Au­ evidence adduced at the hearing and the producers prices equivalent to those con­ gust 16, 1954, filed with the Hearing record thereof, it is hereby found and templated under the act. Prices paid Clerk, United States Department of concluded that: farmers for milk for fluid use have fre­ Agriculture, 'his recommended decision. 1. Character of commerce. The han­quently been below the Class I prices an Said decision containing notice of op­ dling of milk in the Appalachian market­ order would provide. Many of the farm­ portunity to file written exceptions ing area is in the current of interstate ers do not know how their milk is utilized thereto was published in the F ederal commerce and directly burdens, ob­ at the various plants to which they de-' R egister on August 17, 1954 (19 F . R . structs or affects interstate commerce in liver, or whether the basis on which they 5180). milk and its products. are being paid from month to month will Within the period reserved therefor, The proposed marketing area em­ be revised. In some instances, farmers interested parties filed exceptions to cer­ braces portions of three States: namely, are notified of price changes some days tain of the findings, conclusions and Tennessee, Virginia and Kentucky. after Such changes had been made effec­ actions recommended by the Deputy Ad­ Milk handled in the marketing area tive by the handler. Accuracy of weights ministrator. In arriving at the findings, and butterfat tests of milk have been as­ conclusions, and regulatory provisions of moves in large volumes and in many certained infrequently. this decision, each of such exceptions was forms back and forth over State lines. The major handlers in the market have carefully and fully considered in con­ The production areas from which milk is refused or failed to recognize or to bar­ junction with the record evidence per­ received by the various handlers who gain with duly .constituted cooperative taining thereto. To the extent that find­ would be regulated overlap State bound­ associations as to price, or any other ings, conclusions and actions decided aries. Milk from the farms of many terms with respect to the sale of the milk upon herein are at variance with any of producers in southwestern Virginia goes of such associations. Saturday, September 11, 1954 FEDERAL REGISTER 5901

Several handlers in the area have he will be paid during much of the year. westem Virginia provides that the whole dealt with farmers in such a way as to Likewise, uncertainty exists as regards milk equivalent of butterfat in butter­ discourage cooperative action by these establishing bases, transferring bases or milk sold shall be Class I. Since there farmers. Some handlers refused to resolving unusual situations which arise are generally negligible quantities o f make deductions for cooperative dues in connection with the operation of base butterfat in buttermilk, the major por­ from payments due their producers, even and excess plans. tion of skim milk utilized in buttermilk though such deductions had been prop­ The Virginia Milk Commission fixes under the jurisdiction of the Commission erly authorized by the producers. Fail­ prices with respect to a portion of the is not paid for as Class I. Some han­ ure to make such deductions has limited milk purchased in that section of the dlers in the Tennessee portion of the the cooperatives in instituting check proposed marketing area which lies in marketing area buying from producers weighing and testing programs. Repre­ Virginia. on a classification basis classify butter­ sentation by farmers shipping to one of Effective August 1,1949, an order des­ milk sales as Class I-B and price such the large handlers in dealing with the ignated “Rules and Regulations for the classification at 50 cents above the local handler in matters affecting farmers was Supervision and Control of the South­ condensery price. As with buttermilk, instituted under the auspices of the han­ west Virginia Milk Market” was issued producers are not given full considera­ dler. Such effectiveness as the farmers by the Commission. This order, which tion for the sales of flavored milk and were able to manifest in negotiating has been amended twice since its issu­ skim milk drinks in Class I. While some with the handler to further producer in­ ance, provides for minimum prices producers in the area may receive a terests was limited in scope. While this which handlers must pay base-holding Class I price for their deliveries which handler-sponsored producer association producers, and the minimum prices at are used in the manufacture of butter­ may have contributed to the mainte­ which milk may be sold by handlers to milk and flavored milk drinks, numerous nance of goodwill in the producer-han­ retail and wholesale customers. producers in the area receive practically dler relations, it was not in a position In the summer of 1953, it became ap­ manufacturing prices for their deliveries to act as an independent producer or­ parent that the Commission was not in utilized in these fluid outlets. ganization in negotiating prices, or other­ a position to enforce its regulations when Sales by handlers to large outlets, such wise to act in behalf of producers in the milk moved across State lines. Some as government agencies and factories, marketing of their milk. ^ milk from southwest Virginia producers are classified and paid for at prices be­ Prices paid to producers throughout was forced into surplus disposition as its low the stated Class I price. Such sales the marketing area are generally at the usual outlets for fluid use were displaced are made on the basis of contracts, option of the handler. The record in­ by outside milk. The scope of regula­ which are let on bids. One handler rep­ dicates that prices are, in some instances, tion by the Virginia Milk Commission resentative testified that a I-A classifi­ arbitrarily arrived at, and many farm­ was clarified when a decision was cation was established at his plant for ers do not have any assurance of any rendered in 1953 by the Supreme Court such sales to dispose of producer surplus. price at all for their milk. All handlers of Virginia to the effect that the State Bidding on such contracts at these lower in the market do not pay on the same Milk Commission may fix prices only on prices was necessary, it was contended, basis. One of the larger handlers pays that milk sold for consumption in in order to obtain the contracts away producers a flat price for their milk Virginia. from other handlers. without regard to butterfat test or the Southwest Virginia handlers who re­ As handlers compete with each, other way in which it is used. In those in­ ceive milk from Virginia producers for on the various bids, returns to producers stances that handlers purportedly pay distribution both inside and outside the may be expected to decline There is on the basis of the way milk is utilized, State are required by the Commission’s no practical limit short of the surplus no complete systematic verification is order to pay producers a prescribed mini­ price to which such bids may go, and no made. mum price for milk sold for consump­ limit as to the size of sale which may be The stated Class I prices paid pro­ tion in Virginia. Since the price of milk involved. Producers testified that han­ ducers by the various handlers in the which such handler distributes outside dlers take on additional producers when area are frequently not meaningful. Virginia is not fixed by any regulation,' they obtain such contracts, and conse­ Although all milk received from a pro­ the blend price which he pays to his quently, the overall producer blend is ducer at a plant may be sold for fluid Virginia producers may well be signifi­ lowered. The decline in producer re­ consumption, the price he receives could cantly less than the blend calculated at turns is further accelerated as the total be, and usually is, less than a Class I the minimum prices fixed by the Com­ sales by handlers to such contract buyers price because of the various pricing mission. Although the arithmetical cal­ continue to increase, as they have during schemes followed by handlers in the culation of the handler may show that the past year. market. In some cases, bottled milk and he paid the prescribed minimum prices Prices to producers for milk sold by milk products moved beyond a specified for milk sold in Virginia, he is not re­ handlers as “contract milk” have been distance from the bottling plant return strained from applying an arbitrary as much as $1.50 per hundredweight be­ a lesser price to producers. Sales on price to milk distributed outside the low the stated Class I price. In those in­ special contracts and buttermilk sales State to arrive at a predetermined pro­ stances where some producer milk was frequently bring producers prices at a ducer pay price. paid for in a special class as contract level nearer the condensery price than Various classification designations milk, producers did not always have in­ the Class I price. prevail throughout the Appalachian formation relative to the places to which Milk is often imported into the area marketing area. Even under the pur­ such sales were being made, the quanti­ from outside sources at times when con­ ported classification schemes, prices paid ties of milk and milk products so dis­ siderable volumes of producer milk are producers for their deliveries are not posed of, or the extent to which such used in Class n . Producers lose Class I based on actual utilization of the milk sales were made at prices below those sales to such imports which may be ob­ delivered by them to handlers. Milk prevailing in the area. tained as excess milk from other markets. Sold for fluid consumption in various The practice of handlers to cut prices There is little uniformity in the base forms or under various conditions is fre­ paid producers on milk sold on special rules of handlers in the different sections quently designated as other than Class I bids in order to be in a position to under­ of the milkshed that apply with respect under the prevailing classification sys­ bid competition is tending to create un­ to base and excess plans used in paying tems and paid for at prices lower than stable conditions in the market. While producers. Transfer of producers be­ the stated Class I prices. this practice might be rationalized by a tween plants is restricted because of the Although buttermilk sales are a sub­ handler on the basis that it would en­ diversity in application of each of the stantial portion of the total fluid sales able him to dispose of surplus, the same Plans by the various handlers. A new in the market, comparatively little of handler would be required to receive ad­ Producer coming into the market, as well the skim milk and butterfat used in the ditional milk to meet the added demand as an established producer transferring manufacture of buttermilk is paid for for his milk if he is to serve such outlets between plants, is uncertain as to his at the Class I price. The Virginia Milk throughout the year. A further dilution status with respect to the basis on which. Control Commission order for south- of the blend price to his producers would 5902 PROPOSED RULE MAKING result if the handler failed to obtain re­ the appropriate health authorities. The plant under the order. Handlers are the newal of the contract. health ordinances and the practices and persons who should be required to re­ A price of $4.50 per hundredweight was procedures of the health authorities port the receipts and utilization of milk paid producers for milk sold by a local throughout the marketing area are gen­ the handling of which is regulated and handler on a special bid. A handler un­ erally patterned so as to be in accord­ should be held responsible for paying der the Knoxville order who previously ance with the United States Public producers for milk in accordance with had served the account would have been Health Service Milk Ordinance. Rat­ the terms of the order. In case a per­ required to pay the Class I price under ings by the United States Public Health son operates more than one plant at that order, which was $6.68 during the Service are recognized by local. health which milk is to be priced, he should be period covered by the bid. Stated Class I authorities as a basis for accepting milk a handler with respect to the combined prices in the Appalachian area during from outside sources. Reciprocal agree­ operations of such plants. If the han­ the same period were $5.95 to $6.55 per ments on farm inspections and on fin­ dler operates a plant not associated with hundredweight. Nevertheless, the han­ ished Grade “A” milk products for dis­ the regulated market, he would not be dler contended it was necessary to pay tribution prevail between the various a handler with respect to such plant. producers the lower price in order to health authorities in the area. It is Producer-handlers and operators of ap­ obtain the contract. concluded, therefore, that the milk to be proved plants which do not qualify as The record indicates that there is a priced under the proposed order is in­ fluid milk plants should be considered lack of detailed market information for terchangeable and the degree of similar­ handlers in order to require such persons this area. Such information is essential ity of minimum health standards to report to the market administrator as to the effectuation of orderly marketing throughout the area justifies uniform is needed to determine their status. and in achieving a level of Grade A milk regulations for the milk marketed The minimum class prices of the order production commensurate with consumer throughout the area. should apply to that milk eligible for demand for Grade A fluid products. The marketing area should be defined distribution as Grade A milk in the mar­ Some data on receipts and utilization of on the basis of county rather than city keting area which is received from dairy milk for fluid and manufacturing uses is boundaries. Substantial portions of the farmers at plants primarily engaged in made available by the Virginia Milk fluid milk marketed in the area are rep­ supplying fluid milk for sale on retail Commission. This information pertains resented by sales to outlets located and wholesale routes in the marketing to only one segment of the area, however, outside city boundaries. Also, health area. Such plants would be defined as and it does not portray marketing condi­ ordinances for cities and counties are ad­ “fluid milk plants.” tions for the whole area. ministered by the same health authority A fluid milk plant under the attached It is concluded that the issuance of a throughout most of the area. order would be any plant from which a marketing agreement and order for the It was proposed that Smyth county, volume of Class I milk equal to an aver­ Appalachian marketing area would con­ Virginia, be included in the marketing age of more than 1,000 pounds per day tribute substantially to the improvement area. The record discloses that this or more than 2.0 percent of the approved of many of the conditions complained of county does not represent an important milk of such plant is disposed of during and tend to effectuate the declared policy outlet for milk for handlers serving the the month on routes (including routes of the act. The adoption of a classified proposed area. Also, a separate order operated by vendors) or through plant price plan based on the audited utiliza­ for Smyth and Wythe Counties has been stores to retail or wholesale outlets (ex­ tion of handlers will provide a uniform administered by the Virginia Milk Com­ cept other fluid milk plants) located in system of minimum prices to handlers mission. The prices fixed by the Com­ the marketing area. Such a plant would for milk purchased from producers and mission for milk in these two counties be considered a distributing plant. a fair division among all-producers of have been somewhat above those herein Plants supplying Grade A milk, skim the returns from Class I sales. The pub­ recommended for the Appalachian mar­ milk or cream to distributing plants lic hearing procedure required by the Ag­ keting area. It is concluded that han­ would be fluid milk plants under certain ricultural Marketing Agreement Act will dlers regulated pursuant to the proposed circumstances. A supply plant which provide opportunity for representation of order will not be at a disadvantage with receives milk from farmers holding dairy producers, handlers and the public in the respect to sales of milk in Smyth County farm permits or ratings issued by an ap­ determination of prices and marketing if it is not included in the marketing propriate health authority having juris­ conditions for milk in the area. area. diction in the marketing area would be 3. Order provisions— (a) Scope o f Certain handlers testified that they a fluid milk plant in any month during regulation; marketing area. The mar­ distribute Class I milk in counties in ad­ which milk, skim milk or cream is moved keting area should include all the terri­ dition to those proposed to be included from such plant to a distributing plant tory within the counties of Greene, in the marketing area. Since these regulated pursuant to the order. Other Washington and Sullivan in Tennessee; counties were not proposed as part of the supply plants would be fluid milk plants Washington and Wise in Virginia; and marketing area in the notice of hearing in any of the months of February Harlan in Kentucky. they may not be included under regula­ through July during which any Grade The milk which is distributed in these tion at this tim e.. Extension of the regu­ A milk or skim milk is shipped to a dis­ counties is handled almost entirely from lation to these areas would bring addi­ tributing plant regulated pursuant to plants located within the counties. The tional handlers under regulation who the order. Plants coming under the primary outlets for the Class I milk of in turn have important sales outlets order because of shipments to distribut­ these plants are in this proposed area. which would be unregulated. It is con­ ing plants would be considered supply The handlers who would be regulated cluded that the volume of milk sold plants. pursuant to the attached order are in outside the marketing area from pool It would be inappropriate to extend competition throughout the marketing plants as defined under the proposed regulation to any milk plant from which area. Milk plants located in the Vir­ order is not sufficient nor marketing con­ only minor quantities of milk are dis­ ginia portion of the proposed area dis­ ditions in these areas such that their tributed in the marketing area. Such tribute a large share of their milk in exclusion would be inappropriate or un­ plants are selling primarily in competi­ Tennessee and Kentucky while handlers justified at this time. tion with milk of unregulated handlers in the Tennessee and Kentucky portions Designation of plants and milk to be outside the marketing area. Regulation of the recommended area distribute milk subject to regulation. Provision should of such plants might place them in an in Virginia. All of the handlers who be made in the order to designate clearly uneconomic and unfavorable position would be subject to the order are subject what milk will be subject to pricing pro­ with respect to sales outside the market­ to similar or the same market conditions visions of the order. For this reason, ing area. So long as the limits as to with respect to alternative sources and definitions of handlers, milk plants, pro­ sales such a plant may make in the mar­ outlets for milk. ducers, producer milk, and other source keting area are kept relatively low, the Milk sold for Grade A consumption milk should be provided. Such defini­ volume of unpriced milk in the, market must be approved by health authorities tions will permit unequivocal reference to would not present an unstabilizing force in each of the respective portions of the these persons or items throughout the in the market. marketing area. The movements of order. It is concluded that this limit should milk from one section of the area to the The term “handler” should be used to be placed at 2.0 percent of the Grade A other take place with the approval of designate the operator of an approved milk received at such plant from all Saturday, September 11, 1954 FEDERAL REGISTER 5903 sources or an average of 1,000 pounds such milk is received at a fluid milk that it will yield a blend price to produc­ of Class I milk a day, whichever is less. plant. Provision should be made so that ers that will encourage production of Any plant from which a volume of Class the milk of producers regularly received enough milk to meet market needs. I milk equal to more than 1,000 pounds at a fluid milk plant may be diverted Excess milk not needed seasonally or per day or 2.0 percent of its receipts of for the account of a handler to a nonfluid at other times for Class I use must b» Grade A milk, skim milk or cream is dis­ milk plant any day during the flush pro­ disposed of for manufactured products. posed of in the marketing area should be duction months and on not more than 15 These products are less perishable and designated as a distributing plant and days during any other months and still must be sold in competition with prod­ fully subject to regulation. retain status under the order. Diverted ucts made from unapproved milk. Milk Any plant from which Class I milk is milk shall be deemed to have been re­ so used should be classified as Class II distributed in the marketing area, but ceived at the plant from which it was milk and priced in accordance with its which does not meet the standards for diverted. It was proposed that a co­ value in such outlets. a fluid milk plant, should be defined as operative be authorized to divert milk to In accordance with these standards, an “approved plant” and be required to unapproved plants. It was not shown, Class I milk should comprise all skim file reports and submit to audits by the however, th at such authority under the milk (including concentrated or recon­ market administrator to verify the status regulations of an individual handler- stituted nonfat milk solids) and butter­ cf such plant. pool would serve any purpose. fat (1) disposed of in the form of milk, Throughout the year distributing “Other source milk” should be defined skim milk, buttermilk, milk drinks (plain plants, as herein defined, receive supple­ as all skim milk and butterfat contained or flavored), cream (except frozen mental supplies of milk from supply in products utilized by the handler in cream), and any mixture in fluid.form plants. Some of these supply plants are his operations, except milk from pro­ of skim milk and cream (except ice cream associated with the market as a regular ducers and other Class I products re­ mix, eggnog, and sterilized products con­ part of its supply, and the dairy farmers ceived from other fluid milk plants. tained in hermetically sealed contain­ delivering to such plants hold dairy farm Thus, other source milk would represent ers) ; and (2) not accounted for as Class permits or ratings issued by health au­ butterfat and skim milk which may not II milk. thorities having jurisdiction in the mar­ be subject to the pricing provisions of Class I products which contain con­ keting area. Supply plants in this cate­ this order. centrated skim milk solids such as skim gory should be included within the defi­ Persons who are engaged in producing milk drinks to which extra solids have nition of a fluid milk plant throughout milk and distributing only milk of their been added or concentrated whole milk the year so long as they are used as own production, should be subject to disposed of for fluid use, should be in­ sources of supply by distributing plants. the order only to the extent that they cluded under the Class I milk definition. In the case of supply plants which are must submit reports to the market ad­ Products such as evaporated or con­ not under the routine inspection of ministrator, as required, and maintain densed milk packaged in bulk or in health authorities in the marketing area and make available to the market ad­ hermetically sealed cans should not be a different standard should be used. ministrator accounts, records, and facil­ considered as concentrated milk. Such plants normally provide supple­ ities so that the market administrator It was contended that in some portions mental milk to distributing plants in may verify that such persons are pro­ of the marketing area buttermilk may various other sales areas, and their ship­ ducer-handlers. It would be meaning­ be made from ungraded milk and that it, ments to the Appalachian area for Class less to require under the drder that a therefore, should not be included in Class I use are primarily seasonal in nature. producer-handler pay any particular I. It must be made from Grade A milk To the extent these plants furnish only price for milk produced on his own in the primary consuming areas of the needed supplemental milk in months of farm. proposed market, however, and all plants low production they should not be Classification provisions of the pro­ selling in these areas must abide by such brought under regulation. The fact posed order should provide that any standards. This includes most of the that such milk will not be priced in the milk, skim milk, or cream transferred by principal distributing plants which would months of low production would not a handler to a producer-handler will be be regulated. Among those plants not represent a threat to the stability of the Class I milk. Any supplemental supplies so required it is not a practice to make regulated market. However, if ship­ of milk which may be obtained from buttermilk from ungraded milk or milk ments are made from such supply plants other handlers may, by virtue of the type products. Buttermilk distributed in the to distributing plants during the flush of operation involved, be presumed to market is generally labeled and otherwise production months, they should be be needed by the producer-handler for designated as a Grade A product. brought under regulation and made fully fluid use and should be classified in the Skim milk and butterfat are not used subject to the pricing provisions of the supplying handler’s plant as Class I milk. in most products in the same propor­ order. This provision would place such A producer-handler may receive milk tions as contained in the milk received a plant on the same competitive level of from other handlers and still maintain from producers, and therefore should be pricing and subject it to the same regu­ his status as a producer-handler. Pur­ classified separately according to their latory requirements during these months suant to the proposed order, any milk separate uses. The skim milk and but­ as are applicable to plants which supply which a handler receives from a pro­ terfat content of milk products, received the market the year round. Plants sub­ ducer-handler would be other source and disposed of by a handler, can be de­ ject to other orders issued pursuant to milk and would, therefore, be allocated termined through certain testing pro­ the act should not be made subject to to the lowest class utilization at the fluid cedures. Some of these products, such the pricing provisions of this order. milk plant(s) of a handler after the as ice cream and condensed products, If a portion of a plant is operated sep­ allocation of shrinkage on producer milk. present a difficult problem of testing in arately and no approved milk is received (b) Classification of milk. Milk re­that some of the water contained in the in such portion of the plant, the non- ceived by regulated handlers should be milk has been removed. It is desirable approved portion should not be consid­ classified on the basis of the form in, or in the case of such products to provide ered as part of a fluid milk plant. How­ the purpose for which it is used, as either an acceptable means of ascertaining the ever, if any Grade A milk is handled in Class I milk or Class H milk. amount of skim milk and butterfat con­ that portion of the plant in which un­ The products which should be included tained in, or used to produce, these prod­ graded milk is received, the over-all op­ in Class I milk are those generally re­ ucts. This may be accomplished through eration of the plant would be considered quired by health authorities in the the use of adequate plant records made as that of a fluid milk plant and any marketing area to be obtained from milk available to the market administrator Class I disposition therefrom should be or milk products from approved “Grade or by means of standard conversion fac­ credited first to producers. A” sources. The extra cost of getting tors of skim milk and butterfat used to “Producer” should be defined as any quality milk produced and delivered to produce such products. The account­ person, other than a producer-handler, the market in the condition and quanti­ ing procedure to be used in the case of who produces milk under a dairy farm ties required makes it necessary to pro­ any condensed milk product should be inspection permit issued by a duly con­ vide a price for milk used in Class I based on the pounds of milk or skim milk stituted health authority and whose products somewhat above the ungraded required to produce such product. milk may be used as Grade A milk for or manufacturing milk price. This Butterfat and skim milk used to pro­ consumption in the marketing area if higher price should be at such a level duce Class II products should be consid- No. 177------4 5904 PROPOSED RULE MAKING

ered to be disposed of when so, used. plant for the first time should likewise ords available to the market adminis­ Handlers will need to maintain stock be subtracted from the Class n utiliza­ trator for the purpose of verifying the records on such products, however, to tion of the plant during the month. receipt and utilization of milk in such permit audit of their utilization records This will preserve the priority of assign­ nonfluid milk plant. Provision for veri­ by the market administrator. Class II ment of current producer receipts to fication by the market administrator is products from any source used in the current Class I use. reasonable and necessary to assure that production of products included in Class Shrinkage should be determined by producer milk will be paid for in accord­ I milk should be considered to be a re­ subtracting from the total pounds of ance with its utilization. As mentioned ceipt of other source milk. This will skim milk and butterfat received by the heretofore, items of Class I milk trans­ maintain priority of assignment of cur­ handler his total established utilization ferred to a producer-handler should not rent receipts of producer milk to Class I of skim milk and butterfat, respectively, be subject to reclassification. utilization. in various products. Shrinkage not in The order class prices apply only to Handlers must be held responsible for excess of 2 percent of the handler’s re­ producer milk. It is necessary, therefore, a full accounting of all their receipts of ceipts of producer and other source milk if a plant has butterfat or skim milk skim milk or butterfat in any form. A should be prorated between producer other than that received in milk from handler who first receives milk from and other source milk on the basis of the producers, to determine the quantities of producers should be responsible to the pounds received from each source. None milk in each class to be assigned to pro­ market administrator to establish the of the shrinkage should be assigned to ducers. The milk of producers who are classification of, and make payment to milk received from other fluid milk primarily engaged in supplying the Ap­ producers for, such milk. Except for plants because shrinkage on such milk palachian'market should be assigned to such limited quantities of shrinkage will be allowed to the trafisferring han­ Class I utilization first. This is neces­ which may under certain conditions (as dler. A plant which is operated in a rea­ sary to insure the stability of the classi­ set forth elsewhere in this decision) be sonably efficient manner and for which fied pricing program of the order. If the classified in Class H, all skim milk and complete and accurate records of re­ order permitted handlers to obtain other butterfat which is received and for which ceipts and utilization are maintained source milk whenever it was advan­ the handler cannot establish utilization should have total shrinkage of less than tageous to do so for Class I use while should be classified as Class I milk. This 2 percent of total receipts. It is con­ producer milk in the plant was utilized provision is necessary to remove any ad­ cluded that shrinkage which is not more in Class II, the order would not be effec­ vantage to handlers who fail to keep than 2 percent of total receipts of pro­ tive in carrying out the purposes of the complete and accurate records and to ducer milk and other source milk used act. Also, the market would be deprived assure that producers receive full value to produce a Class II product should be of a dependable supply of milk. The for their milk on the basis of its use. classified as Class II milk and any system of assigning utilization of milk It is necessary to place the burden of shrinkage in excess of this quantity to receipts from different sources which proof on the handler to establish the should be classified as Class I milk. will carry out this objective is set forth utilization of any milk as other than Transfers. Classification of butterfat in § 923.46 of the attached order. Class I. and skim milk used in the production of The provision for allocation of other AH skim milk and butterfat used to Class II milk items should be considered source milk to Class n should be modified produce products other than those classi­ to have been established when the prod­ so that milk transferred or diverted fied in Class I milk should be Class n uct is made. Classification of Class I from a regulated plant to a non-regu- milk. Included as Class n milk are milk should be established when the but­ lated plant for custom packaging and products such as ice cream, ice cream terfat or skim milk is disposed of. How­ return to the first plant will not be con­ mix and other frozen desserts and mixes; ever, some Class I items may be disposed sidered as a Class I sale and other source butter, cheese, including cottage cheese; of to other plants for Class II use. Clas­ milk at the regulated plant. The record evaporated and condensed milk (plain sification of any product so transferred indicates that some milk distributed and sweetened); nonfat dry milk solids, to another plant should under certain from plants which would be regulated dry whole milk; condensed or dry butter­ circumstances be determined according pursuant to this proposed order is cus­ milk; and any other products not speci­ to its utilization in the plant to which tom packaged in this way. If such an fied as Class I milk. transferred. exception to the assignment procedure Cream which is placed in storage and Milk, skim milk or cream, or other is not provided it could result in a dupli­ frozen should be classified as Class II products designated as Class I milk trans­ cation of Class I sales in that the same milk. Such cream is intended primarily ferred by a handler to the fluid milk milk might be assigned to Class I when for use in ice cream and ice cream mixes. plant of another handler, except that transferred to the non-fluid milk plant Any frozen cream or other Class H prod­ of a producer-handler, should be classi­ and again when distributed on routes in ucts which are used later in a fluid milk fied as Class I milk unless both handlers packaged form. plant would be considered as other indicate in their reports to the market The exemption thus provided should source milk at the time of such use and administrator that they desire such milk not be construed, however, as a modifi­ assigned to the lowest priced utilization to be classified as Class n milk. How­ cation of the fluid milk plant definition. in the plant. ever, sufficient Class n utilization must The proposed order provides that any Handlers have inventories of milk and be available at the transferee-plant for plant supplying Grade A milk or skim milk products at the beginning and end such assignment after prior allocation milk to a regulated distributing plant of each month which enter into the ac­ of shrinkage and other source milk as dining the months of February through counting for current receipts and utiliza­ described below. On the other hand, if -July would become subject to regulation. tion. Accounting procedure will be the transferring handler had other This provision is for the purpose of as­ facilitated by providing that month end source milk during the month, the as­ suring that the Class I sales of the mar­ inventories of all products designated as signment of products transferred to an­ ket will not be displaced through the Class I milk, regardless of whether such other plant to the Class I utilization of acquisition by handlers of seasonal sur­ products are held in bulk or in packages, such plant should be limited so that pluses from other markets. should be classified iivClass II milk. In ­ other source milk in the transferring The custom bottling provision herein ventories of such products on hand will handler’s plant will not be allocated to found necessary does not alter this quali­ then be subtracted from Class II use the Class I milk while producer milk is al­ fication standard. ( To alter the plant following month. If any products which located to Class n milk in the trans­ definition to accomodate custom bot­ are classified as Class II milk because feree-handler’s plant. tling operations might open- the way 4o they are held in inonth-end inventories Milk, skim milk and cream disposed the removal of Class I sales of producers or later iised in Class I, the higher value of to a nonfluid milk plant, including use should be reflected to producers un­ milk which is diverted (sent directly to milk from the pricing provisions of the less producer milk was not available for the nonfluid milk plant from the pro­ order at the season of the year when such use. ducer’s farm) should be classified as considerable volumes of Grade A milk Inventories of products designated as Class I milk, unless certain conditions are are generally available at surplus prices. Class I milk on hand at a fluid milk plant met. One of these conditions is that the The record does not suggest a means at the beginning of any month during operator of the nonfluid milk plant, if by which such displacement could be which such plant becomes a fluid milk requested, must make his books and rec-. . avoided. ) • IS IIS ..1 Saturday, September 11, 1954 FEDERAL REGISTER 5905

Since uniform prices paid producers per hundredweight for 4 percent milk in Class I- prices should be announced by by each handler are to be calculated December 1953, and was in some months the market administrator by the sixth monthly, the assignment of utilization during the year even below this figure. day of the month. In order to do this, described above should be carried out The Class I price should be fixed in it is necessary to use price quotations for with respect to all milk received during relation to the general level of the value the preceding month in calculating the each month. of milk used to produce manufactured basic formula price. (c) Class prices. Class I prices should dairy products. To achieve this end a Handlers contended that the Class I be established at a level which, in con­ basic price should be adopted which will prices under the Appalachian order junction with the Class n prices herein­ reflect, this general level and to which should be the same as that provided in after concluded to be appropriate, will differentials should be added to reach Federal Order No. 88, regulating the han­ result in returns to producers high the appropriate Class I price. Such dling of milk in the Knoxville, Tennessee, enough to maintain an adequate but not basic price should be the higher of (a) marketing area. There was no showing excessive supply of quality milk to meet the average of the prices paid by the 15 in the record that marketing conditions the requirements of the marketing area. “Midwestern Condenseries,” (b) a price in the two areas are the same. No major The maintenance of stable conditions computed on the basis of the daily quo­ segments of the production area for the in the market requires that Class I prices tations for 92 score butter at Chicago and two markets overlap, and the shifting be adjusted whenever the supply of milk prices paid for nonfat dry milk solids back and forth of producers between the is out of line in relation to sales of milk f. o. b. manufacturing plants in the Chi­ two markets is not general. The prin­ for fluid use. I f prices remain too low, cago area, or (c) the average of the cipal sales areas of handlers in the two insufficient quantities of milk will be prices paid for milk received from dairy markets are widely separated, and com­ produced to assure that the Class I mar­ farmers by selected manufacturing petition between handlers in the two ket will be fully supplied. Conversely, plants in the local area. markets prevails in but few places. The if prices are too high, production will be The purpose of such basic price is to Class I pricing herein provided would not overstimulated and consumption cur­ give consideration to the national eco­ change materially the relative position tailed. This would cause more milk to nomic factors underlying the price for of handlers in the Appalachian market be produced than is needed to satisfy milk for manufacturing uses, which with regard to such competition. the demand for Class I milk, resulting in prices influence the local market prices. Class I prices to producers, histori­ the development of unnecessary and un­ Prices for milk used for fluid purposes cally, have been higher in the Appala­ economic surpluses. in competitive markets are related to the chian area than the Class I prices When milk produced locally is insuffi­ prices paid for milk used for manufac­ provided by the Knoxville order. There cient to meet the Class I needs of the turing purposes. Production and mar­ is no evidence in the record that the market supplemental supplies of Grade keting of milk for each type of manu­ pricing of Class I milk in the Appa­ A milk are purchased by handlers ip the facturing outlet are subject to many of lachian area has in the past been based Appalachian area from plants located the same economic factors. Since the directly on the Class I prices prevailing over a wide geographic area. Prices of market for most manufactured products in the Knoxville market, or that such a this milk fluctuate to a considerable ex­ is countrywide, prices of manufactured basis of pricing for the Appalachian tent with the value of milk produced for dairy products reflect, to a large extent, market would be appropriate at this manufacture. Other items which deter­ changes in general economic conditions time. mine the prices at which such milk will affecting the supply and demand for Class II price. The Class n price be available to Appalachian handlers in­ milk. For these reasons, fluid milk mar­ should be at such a level that handlers clude the cost of transporting such milk kets have used butter, nonfat dry milk will accept and market whatever quanti­ to the marketing area and the alterna­ solids, and cheese prices, or the prices ties of milk in excess of Class I needs tive outlets for such milk. paid by condenseries with differentials may arise from time to time. The price, Proper recognition must be given the over these basic or manufacturing prices however, should not be so low that han­ prices at which alternative sources of to establish fluid milk prices. These dif­ dlers will be encouraged to procure milk supply are available, especially since any ferentials are needed to cover the cost supplies solely for the purpose of con­ milk plant wherever located may, by of meeting quality requirements in the verting them into Class H products. meeting the prescribed qualifications, production of market milk, transporta­ In order to have an adequate supply become a fluid milk plant under the tion costs to the fluid market, and to fur­ of producer milk in the fall and winter order. It is necessary, therefore, that nish the necessary incentive to get such months, handlers accept surplus milk the Class I price in the proposed Ap­ milk produced. from producers during the months of palachian milk marketing order should The basic formula proposed herein is flush production. The Class n uses of not be set at levels which will bring the essentially the same as that used under milk disposed of during the flush pro­ cost of such milk above the cost of ob­ the Knoxville, Nashville, and Memphis duction season are not, on the whole, taining Grade A milk supplies regularly orders and similar to those used in many as profitable outlets as in the fall of the from other sources. other federally regulated markets. The year when the supply of producer milk The Class I price for milk containing price computed under the formula would available for Class n is lower. With a 4 percent butterfat established by the have averaged $3.85 for 1953. The dif­ limited supply of milk for Class H, the Virginia Milk Commission for south­ ferential to be added to this basic price market for those products which will western Virginia averaged $6.10 for the in determining the Class I price would command the best return are served year 1953. The stated Class I price of be applicable to all skim milk and but­ first. During those months of high most of the principal handlers through­ terfat included in the Class I definition production, when the supply is excessive, out the area paying producers on a clas­ of the proposed order. Consequently, large quantities of milk are disposed of sification basis was approximately the the total quantities of producer milk clas­ for use in those products which are least same. As indicated elsewhere in this sified in Class I under the order would profitable or actually result in a loss to decision, not all producer milk utilized be significantly greater than the quanti­ those handlers receiving milk from by handlers in dispositions defined as ties of producer milk now allocated to producers. Class I in the attached proposed order Class I under the various classification Handlers testified that they were ex­ was paid for at the stated Class I price. schemes now in effect in the market. It periencing some difficulties at the time One of the larger handlers paid pro­ is concluded that the differentials to be of the hearing in disposing of excess milk ducers one dollar above the local con- added to the basic price should be $1.70 to manufacturing plants in the area, and densery price for milk sold for fluid con­ for the months of March through July they anticipated further difficulties in sumption on contracts to governmental and $2.Iff for all other months. this regard with the approaching sea­ agencies. Milk sold for buttermilk was The average Class I price which would sonal increases in production. At the Paid for by some handlers at the local have been fixed under this formula dur­ peak of the 1953 production season, local condensery price and by others at 50 ing 1953 was $5.75. The average stated milk manufacturing plants were pushed cents above such price. Skim milk used Class I price for major handlers in the to capacity production by reason of this by handlers in the area in flavored milk market for the same period was over increased receipt of ungraded milk from drinks are frequently paid for at the $6.00. The recommended formula would their regular shippers. Consequently, Manufacturing prices. The local con­ have fixed a price of $5.03 for the month these manufacturing plants accepted but densery price was approximately $3.25 of July 1954. limited quantities of surplus milk from 5906 PROPOSED RULE MAKING

Appalachian handlers. It was indicated fat content of each product. The values portation cost which might otherwise be at the hearing that these local manu­ resulting from multiplying the average borne by producers. For this reason, facturing plants would accept but lim­ price of 92-score butter at Chicago by the Class I price should be adjusted ited quantities of excess producer milk 0. 120 for Class I milk and the New York downward in the case of plants which from fluid milk plants in the future. 92-score butter price by 0.110 for Class assume the cost of hauling the milk to Prices paid by manufacturing plants II milk will provide an appropriate basis the marketing area. may differ because of changes in the for adjusting such prices in this market, It is customary for handlers to pay relative prices of the products which since they will reflect changes in the producers delivering milk to country re­ they manufacture. Handlers will dis­ central market prices of butterfat. The ceiving stations a lesser price per hun­ pose of excess milk to those plants which basing point from which such adjust­ dredweight than is paid producers deliv­ are paying the highest price at the time ments are made should be 4.0 percent ering directly to bottling plants. To the of such disposal. Because of small vol­ butterfat. This is the basis now used in extent that this represents a lower price ume and inefficient means of handling, the Appalachian marketing area. because of the location of the milk, such it is possible that some handlers may, The use of butterfat differentials in difference in value should be recognized at times, incur losses in handling their this manner follows standard practices under the order. It is concluded, there­ necessary reserve supply of milk. The in most fluid milk markets for adjusting fore, that the Class I price should be handling of such surplus milk is inci­ for butterfat variations. In order that reduced for those plants which are out­ dental, however, to the handling of fluid the Class I butterfat differential may be side the marketing area by 10 cents per milk. announced early each month, it is pro­ hundredweight of milk for the first 50 The pricing of milk in the months of vided that the Class I differential be miles and by 1.5 cents per hundred­ flush production should be at the rate at based on the average price of butter in weight of milk for each additional 10 which milk produced for the market will the preceding month. This will permit miles or fraction thereof that such plants be handled so that such surplus milk the announcement of the Class I dif­ are from a central place in the primary production will not disrupt the orderly ferential at the same time that the Class center of consumption in the proposed marketing of milk. The level of such 1. price is announced. area. Kingsport, Tennessee, is such pricing should not be below that paid for Class H prices and butterfat differen­ place in the Appalachian marketing area. ungraded milk, since such pay prices tials will not be announced until after The location differential adjustment and represent the lowest value in the milk- the end of the month. Although han­ the rate thereof herein provided are shed for milk for manufacturing pur­ dlers will now know the cost of such representative of those prescribed in poses. Handlers who need and desire the milk as it is utilized, they will know other Federal milk marketing orders and entire output of producers during periods that their cost will follow that of their is related to the cost of hauling milk by of short supply should assume the re­ principal competitors for manufactured an efficient means to the market. sponsibility of paying producers at least outlets. Prices paid producers supplying plants the competitive manufacturing prices for The butterfat differential used in mak­ to which location differentials apply Class H milk throughout the months of ing payments to producers should be cal­ should be reduced to reflect the lower flush production. During the-months of culated at the average of the return value of such milk f. o. b. the point to short production a higher level of prices actually received from the sale of butter­ which delivered. for Class II milk should be provided in fat in producer milk. The rate to be No adjustment should be made in the the order so as to encourage the transfer used for this purpose would be the aver­ Class H price for location to which the of milk from manufacturing uses to fluid age of the Class I and Class II differen­ milk is delivered. There is little differ­ uses during the fall and winter months tials weighted by the proportion of ence in the value of milk for manufac­ of short supply. butterfat in producer milk classified in tured uses associated with the location The Class II price for the months of each class. Thus, producer returns for of the plant receiving the milk. This March through August should be the butterfat will reflect the actual sale value is true because of the low cost per hun­ average of the prices paid for milk re­ of their butterfat at the class prices pro­ dredweight of milk involved in trans­ ceived from dairy farmers by selected vided in the order. The producer butter­ porting manufactured products. The manufacturing plants in the area. The fat differential in no way affects the prices shown in the record paid for un­ nine such plants whose pay prices would handlers’ cost of milk but merely pro­ graded milk received at Various sections be so used were proposed by producers at rates returns among producers whose of the milkshed do not indicate any the hearing. Two of these plants are milk differs in butterfat test. difference in value associated with loca­ located in southwestern Virginia, three The record indicates that the average tion. in Tennessee, two in Kentucky, and one test of producer receipts exceeds that of After a handler receives milk for Class in each of the States of North Carolina Class I sales. The butterfat differentials II use, he should be expected to handle and South Carolina. Several of the recommended herein for Class I and and dispose of the milk in the most ad­ plants are the principal buyers of un­ Class II milk should tend to encourage vantageous possible method. Prices paid graded milk in the milkshed of the pro­ the production of milk with a fat test producers for such milk should not be posed marketing area. more in line with the fat requirements of made dependent upon the method em­ For each of the months of September the market. ployed by the handler in disposing of through February the Class II price Location differentials. It was pro­ such milk, otherwise part of the incentive should be the higher of either the price posed at the hearing that handlers be f br keeping handling cost at a minimum computed pursuant to a butter-nonfat allowed a location differential with re­ is removed. Tp insure that milk will not solids formula which will reflect changes spect to milk moved from a receiving be moved unnecessarily at producers’ ex­ in manufactured product values in the plant to a processing plant. pense, the order should contain a pro­ general area; or the average of the prices The record discloses that some of the vision to determine whether rnlilk trans­ paid by the nine local manufacturing milk normally supplied to the marketing ferred between plants may receive the plants. area is received by handlers at a distance location differential credit. This should Provision is made in the attached from the plant which processes and dis­ provide that any milk transferred be order which will permit a handler to tributes the milk. In addition, some of assigned to any Class n use remaining divert directly to manufacturing plants the milk is brought to the marketing area in the transferee plant after a maximum any milk clearly not needed in his own in packaged form. assignment of 5 percent of the direct operations. The minimum Class I price to be paid producer receipts to Class n milk. Butterfat differentials. As pointed for producer milk should not be depend­ (d) Distribution of the proceeds to out previously herein, it is concluded that ent upon the type of plant receiving the producers. The individual handler type butterfat and skim milk should be ac­ milk. Neither should milk delivered to of pool should be included in t h e o rd er counted for separately for classification one point within the proposed marketing as a means of distributing to p ro d u c e rs purposes. It will be necessary, there­ area be priced differently than that de­ the returns from the sale of their m ilk. fore, to adjust Class I and Class II prices livered to any other point in the area. Under this type of pool, the m in im u m of milk in accordance with the average However, to the extent that milk is re­ prices will be uniform to all p ro d u cers test of milk in each class by a butterfat ceived elsewhere from producers and delivering their milk to the same han­ differential which will reflect differences brought to the marketing area by a han­ dler. The “blend”, “base” and “ e x c e ss’ in value due to variations in the butter- dler, the handler has assumed a trans­ prices, as the case may be, will d ep en d Saturday, September 11, 1954 FEDERAL REGISTER 5907 on the proportion of the producers’ milk used for Class I sales would be reflected producer, to make proper deductions for used in Class I and Class n milk by the in the payment to be made for such milk, goods or services furnished to or for pay­ handler receiving his milk. Although or in the excess blend price. ments made on behalf of the producer. each handler subject to the order will The daily base of each producer would" At the time final settlement is made for be required to pay uniform minimum be calculated by the market administra­ milk received from producers during the prices to all the producers who deliver tor by dividing the total pounds of milk month the handler should be required to to him during each month the minimum received by all handlers, from such pro­ furnish to each producer a supporting blend prices payable to producers by the ducer during the months of September statement. Such statement would list various handlers will differ according to through February, by the number of the pounds and butterfat tests of milk the variation among handlers in the pro­ days from the first day milk is received received from him, together with the portion of milk used in each class. from such producer during those months rates of payment for such milk and a The record indicates that no handler to the last day of February inclusive, but description of any deductions claimed by in the area is carrying an undue propor­ not less than 120 days. On or before the handler. tion of excess milk in order to supply April 1st of each year the market ad­ (e) Administrative provisions. Pro­ other handlers with supplemental milk. ministrator would be required to notify visions should be included in the order Under these conditions an individual- each producer and the handler receiving with respect to the administrative steps handler pool in the Appalachian mar­ milk from him, the daily base established necessary to carry out the proposed keting area will tend to result in by such producer. This will allow new regulation. optimum allocation of producer milk producers a limited period during which In addition to the definitions discussed among handlers according to Class I their milk is needed by the market to earlier in this decision which define the needs of the handler and in maximum establish a base at the full rate of their scope of the regulation, certain other returns to producers from their milk. average production. terms and definitions are desirable in the Base and excess plan. A “base and It is necessary to provide certain rules interest of brevity and to assure that excess” plan of distributing the returns in connection with the establishment each usage of the term implies the same for milk among producers should be em­ and transfer of bases in order to provide meaning. Definitions for base and ex­ ployed in connection with the individual- reasonable administrative workability of cess milk are included. Such other handler pool. the plan. To accomplish this, and to terms as are defined in the attached Base and excess plans, although they preserve the effectiveness of the base order are common to many other Federal vary considerably among handlers, are plan, transfers of bases should be limited milk orders. ¡commonly used throughout the milkshed to the entire bases of producers who re­ Market administrator. Provision area. The base and excess method of tire from farming. In cases of death or should be made for the appointment by distributing milk returns during the dissolution of joint production arrange­ the Secretary of a market administrator months of flush production has wide ments, such as landlord-tenant relation­ to administer thé order and to set forth support among both producers and han­ ships, similar transfers should be per­ the powers and duties for such agency dlers and should be continued. Inter­ mitted. Since the base plan is effective essential to the proper functioning of ruption in the use of a base plan at in determining producer payments in such office. [this time might result in increased sea­ only five of the twelve months in each Records and reports. Provisions sonality of production to the detriment year and since all producers must estab­ should be included in the order requiring of the market. lish a new base each year, other provi­ handlers to maintain adequate records Because of the seasonal variations in sions than those contained herein for of their operations and to make the the production of milk, there is a.need the establishment and transfer of bases reports necessary to establish classifica­ for an incentive to maintain production are unnecessary. tion of producer milk and payments due in the fall and winter months relative The uniform prices, including uniform therefor. Time limits must be prescribed to spring and summer levels. Some base and excess prices, which are re­ for filing such reports and for making handlers have difficulty in utilizing effi­ quired to be paid producers by each the payments to producers. ciently all milk delivered to them in the handler should be computed for milk Handlers should maintain and make months of seasonally high production. containing 4.0 percent butterfat which is available to the market administrator all By providing returns related directly to in accordance with past and current records and accounts of their opera­ a producer’s ability to deliver additional market practices. In distributing pro­ tions, together with facilities which are ¡milk in the fall and winter as compared ceeds to producers, a differential should necessary to determine the accuracy of ¡with deliveries during the season of flush be applied to recognize different values information reported to the market ad­ production, a production pattern more of milk in accordance with its butterfat ministrator or any other information closely fitted to the sales pattern of fluid content. This differential should be de­ upon which the classification of producer milk and fluid milk products will be en­ termined on the basis of the weighted milk depends! Tire market administra­ couraged. average value of producer butterfat ac­ tor must likewise be permitted to check The base-excess plan proposed by pro­ cording to its utilization at the class the accuracy of weights and tests of milk ducers would establish for each producer prices of the order. and milk products received and handled, in the market a base which would de­ Location differentials heretofore dis­ and to verify all payments required pend upon his deliveries of milk to fluid cussed should be applied to prices paid under the order. milk plants during the six-month period, producers. In addition to the regular reports re­ ¡September throujgh February. During Payment to producers. The order quired of handlers, provision is made for these months, as well as in March, all should provide that each handler with handlers to notify the market adminis­ producers would receive the same respect to milk received from a producer, trator of their intentions to import other “blend”, or average, price paid by the for which payment is not made to a co­ source milk. Such information on a handler to which they deliver their milk. operative association, shall pay such market wide basis may assist handlers For each of the months of April producer at not less than the applicable in locating local sources of producer through August, separate uniform prices uniform price(s) on or before the 15th milk and expedite the transfer of such 'for “base milk” and “excess milk” would day after the end of each month. With milk among handlers. It is necessary be computed so that Class I sales would respect to the producers whose milk was that handlers retain records to prove first be allotted to “base milk.” Base caused to be delivered by a cooperative the utilization of the milk and that fiiilk would be that quantity of milk de­ association which is authorized to collect proper payments were made to pro­ livered by each producer up to his aver­ payment for such milk, the handler ducers. Since the books and records of age daily base multiplied by the number shall, if requested in writing by the co­ all handlers cannot be completed or au­ of days in the month of which he de- operative association, pay such coopera­ dited immediately after the milk has hvers milk to any fluid milk plant* The tive association on or before the 13th been delivered to a plant, it therefore excess milk” price would be the mini- day after the end of such month an becomes necessary to keep such records .fiium order Class II price, unless the amount equal to the sum of the indi­ for a reasonable period of time. total Class I sales of the handler exceed vidual payments otherwise payable to The order should provide limitations the total quantity of base milk received such producer. on the period of time handlers shall be irom producers during the month. In Provision should also be made for the required to retain such books and rec­ this case, the fact that excess milk was handler, if authorized in writing by the ords and on the period of time in which 5908 PROPOSED RULE MAKING obligations under the order shall termi­ activities by the Secretary, the market determined to be the representative pe­ nate. Provision made in this regard is administrator may accept this in lieu of riod for such referendum, were engaged identical in principle with the general his own service. in the production of milk for sale in the amendment made to all milk orders in * There is a need for a marketing serv­ marketing area specified in the aforesaid operation on July 30, 1947, following the ices program in connection with the ad­ order, to determine whether such pro­ Secretary’s decision of January 26, 1949 ministration of an order in this area. ducers favor the issuance of the order <14 P. R. 444). That decision covering Orderly marketing will be promoted by which is filed herewith. the retention of records and limitation assuring individual producers that pay­ Hobart E. Crone is hereby designated of claims is equally applicable in this ments received fbr their milk are based agent of the Secretary to conduct such situation and is adopted as a part of this on the pricing provisions of the order, referendum in accordance with the pro­ decision. and reflect accurate weights and tests of cedure for the Conduct of referenda to Expense of administration. E ach such milk. To accomplish this fully, it determine producer approval of mill? handler should be required to pay the is necessary that the butterfat tests and marketing orders as published in the market administrator, as his pro rata weights of individual producer deliveries F ederal R egister on August 10, 1950 (15 share of the cost of administering the of milk as reported by the handler be F. R. 5177), such referendum to be com­ order, not more than 5 cents per hun­ verified for accuracy. pleted on or before the 20th day from dredweight, or such lesser amount as the An important phase of the marketing the date this decision is filed with the Secretary may from time to time pre­ service program is to furnish producers Hearing Clerk, United States Depart­ scribe, on (a) producer milk (including with current market information. De­ ment of Agriculture. such handler’s own production), (b) tailed information regarding market Marketing agreement and order, as other source milk at a fluid milk plant conditions is not now regularly available am ended. Annexed hereto and made a which is classified as Class I milk, and either to producers or to cooperative as­ part hereof are two documents entitled (c) Class I milk disposed of on. routes in sociations. Efficiency in the production, respectively, “Marketing Agreement the marketing area from a nonfluid milk utilization and marketing of milk will be Regulating the Handling of Milk in the plant. promoted by the dissemination of cur­ Appalachian Area,” and “Order Regu­ The market administrator must have rent information on a marketwide basis lating the Handling of Milk in the Appa­ sufficient funds to enable him to admin­ to all producers. lachian Marketing Area,” which have ister properly the terms of the order. To enable the market administrator to been decided upon as the detailed and The act provides that such cost of ad­ furnish suchi services, provision should appropriate means of effectuating the ministration shall be financed through be made for a maximum deduction of 6 foregoing conclusions. These docu­ an assessment on handlers. One of the cents per hundredweight with respect to ments shall not become effective unless duties of the market administrator is to receipts; of milk -from producers for and until the requirements of § 900.14 of verify the receipts and disposition of whom he renders marketing services. the rules of practice and procedure, as milk from all sources. The record in­ Comparison of the extent of the milk- amended, governing proceedings to dicates that other source milk is received shed and the volume of milk involved formulate marketing agreements and by some handlers to supplement local with that of several other markets now orders have been met. producer supplies of milk. Several han­ under Federal regulation leads to the It is hereby ordered, That all of this dlers obtain a portion of their milk sup­ conclusion that this will reflect the max­ decision, except the attached marketing ply from their own herds. Equity in imum cost of such services. If later ex­ agreement, be published in the F ederal sharing the cost of administration of the perience indicates that marketing serv­ R egister. The regulatory provisions of order among handlers will be achieved, ices can be performed at a lesser rate, said marketing agreement are identical therefore, by applying the administrative provision is made for the Secretary to with those contained in the order, which assessment to all producer milk (includ­ adjust the rate downward without the will be published with this decision. ing handlers’ own production) and other necessity of a hearing. source milk allocated to Class I milk. General findings, (a) The proposed This decision filed at Washington, Plants not subject to the classification marketing agreement and the order, and D. C., this 7th day of September 1954. and pricing provisions of the order may all of the terms and conditions thereof, [ seal] E arl L. B utz, distribute limited quantities of Class I will tend to effectuate the declared policy Assistant Secretary. milk in the marketing area. These of the act; plants must be checked to verify their (b) The parity prices of milk as de­ Order? Regulating the Handling of Milk status under the order. Assessment of termined pursuant to § 2 of the act in the Appalachian Marketing Area administrative expense with respect to are not reasonable in view of the price Sec. such milk sold in the marketing area of feeds, available supplies of feeds and 923.0 Findings and determinations. other economic^ conditions which affect will help to defray the costs of such DEFINITIONS checks. market supply of and demand for milk 923.1 Act. In view of the anticipated volume of in the marketing area, and the mini­ 923.2 Secretary. milk and the costs of administering or­ mum prices specified in the proposed 923.3 Department of Agriculture. ders in markets of comparable circum­ marketing agreement and the order are 923.4 Person. stances, it is concluded that an initial such prices as will reflect the aforesaid 923.5 Cooperative association. rate of 5 cents per hundredweight is nec­ factors, insure a sufficient quantity of 923.6 Appalachian marketing area. essary to meet the expenses of adminis­ pure and wholesome milk and be in the 923.7 Fluid milk plant. public interests; and 923.8 Approved plant. tration. Provision should be made to 923.9 Nonfluid milk plant. enable the Secretary to reduce the rate (c) The proposed order will regulate 923.10 Handler. of assessment below the 5 cents per hun­ the handling of milk in the same manner 923.11 Producer. dredweight maximum without necessi­ as, and will be applicable only to persons 923.12 Producer milk. tating an amendment to the order. This in the respective classes of industrial 923.13 Approved milk. should be done at any time experience and commèrcial activity specified in a 923.14 Other source milk. in the market reveals that a lesser rate marketing agreement upon which a 923.15 Producer-handler. will produce sufficient revenue to ad­ hearing has been held. 923.16 Chicago butter price. minister the order properly. Order of the Secretary directing the 923.17 Base milk. Marketing services. A provision conduct of a referendum; determination 923.18 Excess milk. should be included in the order for fur­ of a representative period; and designa­ m a r k e t administrator tion of referendum agent. Pursuant to nishing marketing services to producers, 923.20 Designation. such as verifying of tests and weights section 8c (19) of the Agricultural Mar­ keting A greem ent Act of 1937, as 923.21 Powers. and furnishing market information. 923.22 Duties. These should be provided by the market amended (7 U. S. C. 608c (19)), it is hereby directed that a referendum be 1 administrator and the cost should be conducted among the producers (as de­ This order shall not become effective un­ bprne by the producer receiving the less and until the requirements of § 900.1» fined in the attached order regulating of the rules of practice and procedure, as service. If a cooperative association is the handling of milk in the Appalachian amended, governing proceedings to formu­ performing such services for any mem­ marketing area) who, during the month late marketing agreements and orders have ber producers and is approved for such of August 1954, which month is hereby been met. Saturday, September 11, 1954 FEDERAL REGISTER 5909

r e p o r t s, r ec o r d s, and f a c il it ie s to effectuate the declared policy of the Secretary deterjnines, after application act; by the association: $23.30 Reports of receipts and utilization.. (2) The parity prices of milk as de­ (a) To be qualified under the provi­ 923.31 Other reports. termined pursuant to section 2 of the act sions of the act of Congress of February 923.32 Records, and facilities. are not reasonable in view of the price 18, 1922, as amended, known as the 923.33 Retention of records. of feeds, available supplies of feeds and “.Capper-Volstead Act”; and CLASSIFICATION' other economic conditions which affect (b) To have full authority in the sale 923.40 Skim milk and butterfat to be market supply of and demand for milk of milk of its members and to be engaged classified. in the said marketing area, and the in making collective sales of or market­ 923.41 Classes of utilization. minimum prices specified in the order ing milk or its products for its members. 923.42 Shrinkage. are such prices as will reflect the afore­ § 923.6 Appalachian Marketing Area. 923.43 Responsibility of handlers and re­ said factors, insure a sufficient quantity classification of milk. “Appalachian Marketing Area,” herein­ 923.44 Transfers. of pure and wholesome milk and be in after called the “marketing area,” means 923.45 Computation of the skim milk and the public interest; all the territory within the counties of butterfat in each class. (3) The said order regulates the han­ Sullivan, Washington, and Greene in 923.46 Allocation of skim milk and butter­ dling of milk in the same manner as and Tennessee; Washington and Wise in Vir­ fat classified. is applicable only to persons in the re­ ginia; and Harlan in Kentucky. MINIMUM PRICES spective classes of industrial and com­ mercial activity specified in a marketing § 923.7 Fluid milk plant. “Fluid 923.50 Basic formula price. agreement upon which a hearing has milk plant” means (a) any plant from 923.51 Class prices. which a volume of Class I milk equal to 923.52 Butterfat differential to handlers. been held; 923.53 Location differentials to handlers. (4) All milk and milk products han­ an average of more than 1,000 pounds 923.54 Use of equivalent prices. dled by handlers, as defined in this order, per day, or not less than 2.0 percent of are in the current of interstate com­ the approved milk of such plant is dis­ APPLICATION OF PROVISIONS merce or directly burden, obstruct or posed of during the month on routes 923.60 Producer-handlers. affect interstate commerce in milk or its (including routes operated by vendors) 923.61 Plants subject to other Federal products; and or through plant stores to retail or orders. (5) It is hereby found that the neces­ wholesale outlets (except other fluid DETERMINATION OF UNIFORM PRICE sary expense of the market administra­ milk plants) located in the marketing area, (b) any plant which during the 923.70 Net obligation of handlers. tor "for the maintenance and functioning 923.71 Computation of uniform prices for of such agency will require the payment months of February through July ships handlers. by each handler as his pro rata share of grade A milk or skim milk to a plant 923.72 Computation of the uniform prices such expense, 5 cents per hundredweight, qualified pursuant to paragraph (a) of for base milk and for excess milk or such amount not exceeding 5 cents this section or (c) any plant which dur­ for handlers. per hundredweight, as the Secretary may ing the months of August through Ja n ­ BASE RATING prescribe with respect to all (a) receipts uary receives milk from farmers hold­ ing dairy farm permits or ratings issued 923.80 Determination of daily base. of producer milk including such handler’s own production, (b) other source milk by a health authority having jurisdiction 923.81 Computation of base. in the marketing area, and from which 923.82 Base rules. at a fluid milk plant which is classified 923.83 Announcement of established bases. as Class I milk and, (c) Class I disposed milk, skim milk or cream is moved dur­ ing the month to a plant qualified pur­ PAYMENTS of during the month on routes (including routes operated by vendors) to retail or suant to paragraph (a) of this section: 923.90 Payments to producers. wholesale outlets (except fluid milk Provided, That if a portion of a plant is 923.91 Butterfat differential to producers. plant) located in the marketing area operated separately and no approved 923.92 Location differential to producers. milk is received in such portion of the 923.93 Adjustment of accounts. frpm a nonfluid milk plant. Order relative to handling. It is plant, it shall not be considered as part 923.94 Marketing services. of a fluid milk plant pursuant to this 923.95 Expense of administration. therefore ordered that on and after the 923.96 Termination of obligations. effective date hereof the handling of section. milk in the Appalachian marketing area § 923.8 Approved plant. “Approved EFFECTIVE TIME, SUSPENSION, OR TERMINATION shall be in conformity to and in compli­ plant” means a fluid milk plant or any 923.100 Effective time. * ance with the following terms and con­ plant from which Class I milk is de­ 923.101 Suspension or termination. ditions: livered (including delivery by a vendor 923.102 Continuing obligations. DEFINITIONS or sale from a plant store) during the 923.103 Liquidation.- § 923.1 Act. “Act” means Public Act month to retail or wholesale outlets (ex­ MISCELLANEOUS PROVISIONS No. 10,73d Congress, as amended, and as cept fluid milk plants) located in the 923.110 Agents. reenacted and amended by the Agricul­ marketing area. 923.111 Separability of provisions. tural Marketing Agreement Act of 1937, § 923.9 Non fluid milk plant. “Non­ Au t h o r it y : §§923.0 to 923.111 issued un­ as amended (7 U. S. C. 601 et seq.). fluid milk plant” means any milk manu­ der sec. 5, 49 Stat. 753, as amended; 7 U. S. C. § 923.2 Secretary. “Secretary” facturing, processing or bottling plant 608c. means the Secretary of Agriculture of other than a fluid milk plant. § 923.0 Findings and determina­ the United States or any other officer or § 923.10 Handler. “Handler” means tions—(a) Findings upon the basis of employee of the United States author­ any person in his capacity as the oper­ the hearing record. Pursuant to the ized to exercise the powers or to perform ator of an approved plant. provisions of the Agricultural Marketing the duties of the said Secretary of § 923.11 Producer. '“Producer” means Agreement Act of 1937, as amended (7 Agriculture. any person except a producer-handler, U. S. C. 601 et seq.), and the applicable § 923.3 Department of Agriculture. who produces milk in compliance with rules of practice and procedure, as “Department of Agriculture” means the Grade A inspection requirements of a amended, governing the formulation of United States Department of Agriculture duly constituted health authority, which marketing agreements and marketing milk is (a) received at a fluid milk plant, orders (7 CPR Part 900), a public hear­ or any other Federal agency authorized to perform the price reporting functions or (b) diverted by the operator of a fluid ing was held upon a proposed marketing milk plant for his account to a nonfluid agreement and a proposed order regulat­ specified in this part. milk plant (1) any day during the ing the handling of milk in the Ap­ § 923.4 Person. “Person” means any months of March through July, and (2) palachian marketing area. Upon the individual, partnership, corporation, as­ on not more than 15 days during any of basis of the evidence introduced at such sociation, or other business unit. the months of August through February: nearing and the record thereof, it is Provided, That milk so diverted shall be found that: § 923.5 Cooperative association. “Co­ deemed to have been received by the (1) The said order, and all of theoperative association” means any coop­ diverting handler at the location of the tenns and conditions thereof, will tend erative marketing association which the plant from which it was diverted. 5910 PROPOSED RULE MAKING

§ 923.12 Producer milk. “Producer (a) To administer its terms and pro­ and the Class I butterfat differential, milk” means only that skim milk or but- visions; both for the current month; (2) the 6th terfat contained in milk (a) received at (b) To receive, investigate, and report day of each month, the Class n price the fluid milk plant directly from pro­ to the Secretary complaints of viola­ and the Class II butterfat differential, ducers, or (b) diverted from a fluid milk tions; both for the preceding month; and (3)’ plant to a nonfluid milk plant in accord­ (c) To make rules and regulations the 10th day after the end of each ance with the conditions set forth in effectuate its terms and provisions; and month, the uniform price (s), and the § 923.Hi (d) To recommend amendments to producer butterfat differential. the Secretary. § 923.13 Approved milk. “Approved REPORTS, RECORDS, AND FACILITIES milk” means any skim milk or butterfat § 923.22 Duties. The market ad­ ministrator shall perform all duties nec­ § 923.30 Reports o f receipts and utili­ contained in producer milk or in milk, zation. On or before the 6th day after skim milk or cream which is received essary to administer the terms and provisions of this part, including, but the end of each month, each handler, ex­ from a fluid milk plant, except the plant cept a producer-handler, shall report to of a producer-handler, and which is ap­ not limited to, the following: (a) Within 45 days following the date the market administrator in the detail proved for distribution as Class I milk and on forms prescribed by the market by the agency issuing the health permit on which he enters upon his dutieg, or administrator. for each of his approved to such plant. such lesser period as may be prescribed by the Secretary, execute and deliver to plants for such month as follows: § 923.14 Other source milk. “Other the Secretary a bond, effective as of the (a) The quantities of skim milk and source milk” means all skim milk and date on which he enters upon his duties butterfat contained in receipts of pro­ butterfat contained in: and conditioned upon the faithful per­ ducer milk; (a) Receipts during the month in the formance of such duties, in an amount (b) The quantities of skim milk and form of products designated as Class I and with surety thereon satisfactory to butterfat contained in products desig­ nated as Class I milk pursuant to milk pursuant to § 923.41 (a), except (1) the Secretary; such products approved by the appro­ (b) Employ and fix the compensation § 923.41 (a) (1) received from other priate health authorityfer distribution of such persons as may be necessary to handlers; as Class I milk in the marketing area enable him to administer its terms and (c) The quantities of skim milk and which are received from fluid milk provisions; butterfat contained in other source milk; plants, or (2) producer milk; and (c) Obtain a bond in a reasonable (d) Inventories of products desig­ (b) Products designated as Class II amount, and with reasonable surety nated as Class I milk pursuant to § 923.41 milk pursuant to § 923.41 (b) (1) from thereon, covering each employee who (a) (1) on hand at the beginning and any source (including those from a handles funds entrusted to the market end of the month; and plant’s own production), which are re­ administrator; (e) The utilization of all skim milk processed or converted to another prod­ (d) Pay out of the funds provided by and butterfat required to be reported uct in the plant during the month. § 923.95 (1) the cost of his bond and of pursuant to this section, including a § 923.15 Producer-handler. “Pro­ the bonds of his employees, (2) his own separate statement of the disposition of ducer-handler” means any person who compensation, and (3) all other ex­ Class I milk outside the marketing area. operates a dairy farm and an approved penses, except those incurred under § 923.31 Other reports, (a) Each plant from which Class I milk is dis­ § 923.94, necessarily incurred by him in producer-handler shall make reports to posed of in the marketing area but the maintenance arid functioning of his the market administrator at such time who receives no milk from other dairy office and in the performance of his and in such manner as the market ad­ farmers. duties; ministrator may prescribe. § 923.16 Chicago "butter price. (e) Keep such books and records as (b) Each handler, except a producer- “Chicago butter price” means the simple will clearly reflect the transactions pro­ handler, shall report to the market ad­ average as computed by the market ad­ vided for in this part, and upon request ministrator in detail and on forms pre­ ministrator of the daily wholesale selling by the Secretary, surrender the same to scribed by the market administrator: prices (using the midpoint of any range such other person as the Secretary may (1) On or before the 20th day after as one price) per pound of 92-score bulk designate; the end of the month for each of his fluid creamery butter at Chicago as reported (f) Publicly announce, at his discre- milk plants his producer payroll for such during the month by the Department of tiori, unless otherwise directed by the month which shall show for each pro­ Agriculture. Secretary, by posting in a conspicuous ducer: (i) His name and address, (ii) place in his office and by such other the total pounds of milk received from § 923.17 B ase m ilk. “Base milk” means as he deems appropriate, the such producer, including, for the months means milk received at a fluid milk plant name of any person who, after the date of April through August, the total pounds from a producer during any of the Upon which he is required to perform of base and exees§ milk, (iii) the days months of April through August which such acts, has not made reports pur­ on which milk was received from such is not in excess of such producer’s base suant to §§ 923.30 and 923.31, or pay­ producer if less than a full month, (iv) for such month Computed pursuant to ments pursuant to § § 923.90 through the average butterfat content of such § 923.81. 923.95; milk, and (v) the net amount of such § 923.18 Excess milk. “Excess milk” (g) Submit his books and records to handler’s payment, together with the means either (a) milk received a t a fluid examination by the Secretary and fur­ price paid and the amount and nature milk plant from a producer during any nish such information and reports as of any deductions; of the months of April through August, may be required by the Secretary; (2) On or before the first day other which is in excess of base milk received (h) Prepare and make available for source milk is received in the form of from such producer during such month, the benefit of producers, consumers, and milk, fluid skim milk or cream at his or (b) milk received during such month handlers such general statistics and in­ fluid milk plant(s), his intention to re­ from a producer for whom no base can formation concerning the operation ceive such product, and on or before the be computed pursuant to § 923.80» hereof as are necessary and essential to last day such product is received, his the proper functioning of this part; iritention to discontinue receipt of such MARKET ADMINISTRATOR (i) Verify all reports and payments by product; and § 923.20 Designation. The agency for each handler by audit, if necessary, of (3) Such other information with re­ the administration of this part shall be such handler’s records and the records spect to his utilization of butterfat and a market administrator, selected by the of any other handler or person upon skim milk as the market administrator Secretary, who shall be entitled to such whose utilization the classification of may prescribe. compensation as may be determined by, skim milk and butterfat for such handler § 923.32 Records and facilities. Each and shall be subject to removal at the depends; and discretion of, the Secretary. handler shall maintain and make avail­ (j) On or before the date specified, able to the market administrator during § 923.21 Powers. The market ad­ publicly announce and notify each han- the usual hours of business such accounts ministrator shall have the following dlervin writing of the following: (1) The and records of his operations and such powers with respect to this part: 6th day of each month, the Class! price, facilities as are necessary for the market Saturday, September 11, 1954 FEDERAL REGISTER 5C11 administrator to verify or establish the ment of shrinkage to Class n milk as before the 6th day after the end of the correct data with respect to: follows: month within which such transaction (a) The receipt and utilization of all (a) Determine the total shrinkage of occurred; skim milk and butterfat handled in any butterfat and skim milk in the fluid milk (2) The buyer maintains books and form; plant(s) of the handler; records showing the utilization of all (b) The weights and tests for butter- (b) Multiply the pounds of skim milk skim milk and butterfat at his plant fat and other content of all milk, skim and butterfat in producer milk (except which are made available, if requested milk, cream, and other milk products milk diverted pursuant to § 923.11) and by the market administrator for the handled; • other source milk by 0.02; purpose of verification; and (c) The pounds of skim milk and but­ (c) Multiply the pounds of butterfat (3) Not less than an equivalent terfat contained in or represented by all and skim milk, respectively, determined amount of skim milk and butterfat was milk, skim milk, cream, and other milk pursuant to paragraph (a) or (b) of this actually used as Class II milk in such products on hand at the beginning and section, whichever is less, by the per­ buyer’s plant. end of each month; and centage of butterfat and skim milk (d) As Class I milk is transferred in (d) Payments to producers, including classified pursuant to § 923.41 (a) and bulk form as cream to a nonfluid plant any deductions authorized by producers, (b) (1) (except shrinkage determined unless: and disbursement of money so deducted. pursuant to paragraph (a) of the sec­ (1) Such cream is transferred without tion) which is in Class II milk. The re­ Grade A certification of any health § 923.33 Retention of records. All sulting amounts of skim milk and but­ authority; books and records required under this terfat shall be classified as Class II milk; (2) The handler claims Class II in his order to be made available to the market and report submitted to the market adminis­ administrator shall be retained by the (d) Assign the shrinkage of skim milk trator pursuant to § 923.30 on or before handler for a period of three years to and butterfat classified as Class II milk the 6th day after the end of the month begin at the end of the calendar month pro rata to producer milk and other within which such transaction occurred; to which such books and records pertain: source milk. (3) The buyer maintains books and Provided, That if, within such three-year records showing the utilization of all period, the market administrator noti­ § 923.43 Responsibility of handlers and reclassification of milk, (a) All skim milk and butterfat at his plant fies the handler in writing that the re­ which are made available, if requested tention of such books and records, or of skim milk and butterfat shall be Class by the market administrator for the specified books and records, is necessary I milk unless the handler who first re­ purpose of verification; and in connection with a proceeding under ceives such skim milk or butterfat can prove to the market administrator that (4) Not less than an equivalent section 8c (15) (A) of the act or a court amount of Skim milk and butterfat was action specified in such notice, the han­ such skim milk or butterfat should be classified otherwise; actually used as Class II milk in such dler shall retain such books and records, buyer’s plant. or specified books and records, until fur­ (b) Any skim milk or butterfat shall ther written notification from the mar­ be reclassified if verification by the mar­ § 923.45 Computation of the skim ket administrator. In either case, the ket administrator discloses that the milk and butterfat in each class. For market administrator shall give further original classification was incorrect. each month, the market administrator written notification to the handler § 923.44 Transfers. Skim milk or shall correct for mathematical and for promptly upon the termination of the other obvious errors, the reports of re­ butterfat disposed of from a fluid milk ceipts and utilization for the fluid milk litigation or when the records are no plant shall be classified: longer necessary in connection there­ plants of each handler and shall com­ (a) As Class I milk if transferred in pute the pounds of butterfat and skim with. the form of products designated as Class CLASSIFICATION milk in Class I milk and Class II milk for I milk in § 923.41 (a) (1) to a fluid milk such handler: Provided, That if any of § 923.40 Skint milk and butterfat to plant of another handler, except a pro­ the water contained in the milk from be classified. The skim milk and but­ ducer-handler, unless utilization as Class which a product is made is removed be­ terfat at fluid milk plants, which is re­ II milk is claimed by both handlers in fore the product is utilized or disposed quired to be reported pursuant to the reports submitted by them to the of by a handler, the pounds of skim § 923.30 shall be classified each month market administrator pursuant to milk used or disposed of in such product by the market administrator, pursuant § 923.30: Provided, That the skim milk shall be considered to be an amount to the provisions of §§ 932.41 through or butterfat so assigned to Class II milk equivalent to the nonfat milk solids con­ 923.46. shall be limited to the amount thereof tained in such product, plus all of the remaining in Class II milk in the plant water originally associated with such § 923.41 Classes of utilization. Sub­ of the transferee-handler after the sub­ ject to the conditions set forth in traction of other source milk pursuant solids. §§ 923.43 and 923.44, the classes of utili­ to § 918.46, and any additional amounts § 923.46 Allocation of skim milk and zation shall be as follows: of such skim milk or butterfat shall be butterfat classified. After making the (a) Class I milk. Class I milk shall assigned to Class I milk: And provided computations pursuant to § 923.45, the be all skim milk (including concentrated further, That if either or both handlers market administrator shall determine and reconstituted skim milk) and but­ have received other source milk, the the classification of producer milk for terfat (1) disposed of in the form of skim milk or butterfat so transferred each handler as follows: milk, skim milk, buttermilk, milk drinks shall be classified at both plants so as (a) Skim milk shall be allocated in (plain or flavored), cream (except frozen to allocate the greatest possible Class I the following manner:" cream) and any mixture in fluid form milk utilization to the producer milk of (1) Subtract from the total pounds of of skim milk and cream (except sterilized both handlers. skim milk in Class II milk the pounds products in hermetically sealed con­ (b) As Class I milk if transfered to a of skim milk assigned to producer milk tainers, ice cream mijf, and eggnog); producer-handler in the form of prod­ pursuant to § 923.42 (d ); and (2) not accounted for as Class II ucts designated as Class I milk in (2) ‘ Subtract from the total pounds of milk; § 923.41 (a) (1); skim milk in Class I milk the pounds of (b) Class II milk. Class II milk shall (c) As Class I milk if transferred or skim milk in products defined as Class I be all skim milk and butterfat (1) used diverted in bulk form as milk or skim milk pursuant to § 923.41 (a) received in to produce any product other than those milk to a nonfluid plant located in the consumer packages from a nonfluid milk designated as Class I milk pursuant to marketing area or not more than 50 plant or the pounds of skim milk clas­ •paragraph (a) of this section; (2) con­ miles by the shortest highway distance sified as Class I milk and transferred or tained in inventory of products desig­ as determined by the market adminis­ diverted during the month to such non­ nated as Class I milk pursuant to para­ trator from the nearest point in the fluid milk plant whichever is less. graph (a) of this section on hand at the marketing area unless: (3) Subtract from the remaining end of the month; and (3) in shrinkage (1) The handler claims Class II onpounds of skim milk in Class II milk the assigned to Class II pursuant to -§ 923.42. the basis of utilization mutually indi­ remaining pounds of skim milk in other § 923.42 Shrinkage. The market ad­ cated in writing to the market adminis­ source milk: Provided, That if the re­ ministrator shall determine the assigii- trator by both buyer and seller on or ceipts of skim milk in other source milk No. 177------5 5912 PROPOSED RULE MAKING are greater than the remaininfi pounds cago butter price by 4.0, add 20 percent butter per pound at Chicago, as reported of skim milk in Class n milk, an amount thereof , and add to such sum 3% cents by the Department of Agriculture during equal to the difference shall be sub­ for each full V2 cent that the average of the previous month, and round to the tracted from the pounds of skim milk carlot prices per pound of nonfat dry nearest one-tenth cent. in Class I milk; milk solids, spray and roller process, for (b) Class II price. Multiply by 0.11 (4) Subtract from the remaining human consumption, f. o. b. Chicago area the average of the daily wholesale prices pounds of skim milk in Class n milk the manufacturing plants, as reported by (using the midpoint of any price range pounds of skim milk contained in in­ the Department of Agriculture during as one price) of 92-score bulk creamery ventory of products designated as Class the delivery period, is above 5 cents. butter per pound at New York, as re­ I milk pursuant to §923.41 (a) (1) on § 923.51 Class prices. Subject to the ported by the Department of Agriculture hand at the beginning of the month: provisions of §§ 923.52 and 923.53, the during the month, and round to the Provided, That if the pounds of skim class prices per hundredweight for the nearest one-tenth cent. milk in such inventory are greater than month shall be as follows: the remaining pounds of skim milk in § 923.53 Location differentials to han­ (a) Class I milk price. The Class I dlers. For that milk which is received Class n milk, an amount equal to the milk price shall be the basic formula difference shall be subtracted from the from producers at a fluid milk plant price for the preceding month, plus $2.10 located outside the marketing area and pounds of skim milk in Class I milk; during the months of August through (5) Subtract from the remaining 50 miles or more from the city limits of February and plus $1.70 during all other Kingsport, Tennessee, by shortest hard­ pounds of skim milk in each class the months. skim milk received from the fluid milk surfaced highway distance, as deter­ (b) Class II milk price. For the mined by the market administrator, and plants of other handlers in the form of months of March through August, the products designated as Class I milk in which is transferred in the form of prod­ Class n milk price shall be the price ucts designated as Class I milk in § 923.41 § 923.41 (a) (1), according to its classi­ computed pursuant to subparagraph (1) fication as determined pursuant to (a) (1) and assigned to Class I pursuant of this paragraph and for all other to the proviso of this section, or other­ § 923.44 ( a ); months the higher of the prices com­ (6) Add to the remaining pounds of wise classified as Class I milk, the price puted pursuant to subparagraphs (1) specified in § 923.51 (a) shall be reduced skim milk in Class II milk the pounds and (2) of this paragraph: of skim milk subtracted pursuant to sub- at the rate set forth in the following (1) The average of the basic or field schedule according to the location of the paragraph (1) of this paragraph; and prices reported to have been paid or to (7) If the remaining pounds of skim fluid milk plant where such milk is re­ be paid per hundredweight for milk of ceived from producers: milk in both classes exceed the pounds of 4.0 percent butterfat content received skim milk contained in producer milk, from farmers during the month at the Distance from the city Rate per subtract such excess from the remaining following plants or places for which limits of Kingsport hundredweight pounds of skim milk in series beginning (m iles): (cents) prices have been reported to the market 50 but less than 60______10 with Class II milk. Any amount so sub­ administrator or to the Department of tracted shall be known as “overage.” For each additional 10 miles or frac­ Agriculture on or before the 6th day tion thereof an additional______1 .5 (b) Butterfat shall be allocated in ac­ after the end of the month: cordance with the same procedure out­ Provided, That for purpose of calculat­ lined for skim milk in paragraph (a) of Company and Location ing such location differential, products this Section; Pet Milk Co., Mayfield, Ky. so designated as Class I milk which are (c) Determine the weighted average Pet Milk Co., Bowling Green, Ky. transferred between fluid milk plants butterfat content of the Class I and Class Pet Milk Co., Greenville, Tenn. Pet Milk Co., Abingdon, Va. shall be assigned to any remainder of II milk allocated to producer milk. Carnation Co., Murfreesboro, Tenn, Class II milk in the transferee-plant MINIMUM PRICES Carnation Co., Statesville, Tjf. C. after making the calculations prescribed Borden Co., Lewisburg, Tenn. in § 923.46 (a) (1), (2), and (3), and the § 923.50 Basic formula price. The Borden Co., Chester, S. C. comparable steps in (b) for such plant, highest of the prices computed pursuant Carnation Co., Galax, Va. and after deducting from such remainder to paragraphs (a) or (b) of this section (2) Add the amounts obtained pur­ an amount equal to 0.05 times the skim and § 923.51 (b ), rounded to the nearest milk and butterfat contained in the pro­ whole cent, shall be known as the basic suant to subdivisions (i) and (ii) of this subparagraph, and subtract 75 cents ducer milk received at the transferee- formula price. therefrom. plant, such assignment to transferor (a) To the average of the basic or (i) Multiply by 4.80 the simple aver­ plants to be made in sequence according field prices per hundredweight reported age of the daily wholesale selling prices to the location differential applicable at to have been paid or to be paid for milk (using the midpoint of any range as one each plant, beginning with the plant of 3.5 percent butterfat content received price) per pound of 92-score bulk having the largest differential. from farmers during the month at the creamery butter at New York as re­ following plants or places for which § 923.54 Use of equivalent prices. If ported during the month by the Depart­ for any reason a price quotation required prices have been reported to the market ment of Agriculture; administrator or to the Department of by this part for computing class prices (ii) Multiply by 8.2 the weighted aver­ or for other purposes is not available in Agriculture: age of carlot prices per pound for spray the manner described, the market ad­ Present Operator and Location process nonfat dry milk solids, for ministrator shall use a price determined Borden Co., Mount' Pleasant, Mich.. human consumption, f . o. b. manufac­ by the Secretary to be equivalent to the Carnation Co., Sparta, Mich. turing plants in the Chicago area, as price which is required. Pet Milk Co., Hudson, Mich. published for the period from the 26th Pet Milk Co., Wayland, Mich. day of the immediately preceding month APPLICATION OP PROVISIONS Pet Milk Co., Coopersville, Mich. through the 25th day of the current § 923.60 Producer-handlers, Sec­ Borden Co., Orfordville, Wis. tions 923.40 through 923.46, 923.50 Borden Co., New London, Wis. month, by the Department of Agricul­ Carnation Co., Chilton, Wis. ture. through 923.53, 923.70 through 923.72, Carnation Co., Berlin, Wis. § 923.52 Butter fat differential to 923.80 through 923.83, and 923.90 Carnation Co., Richland Center, Wis. handlers. For milk containing more or through 923.96 shall not apply to a Carnation Co., Oconomowoc, Wis. producer-handler. Pet Milk Co., New Glarus, Wis. less than 4.0 percent butterfat, the class Pet Milk Co., Belleville, Wis. prices for the month calculated pur­ § 923.61 Plants subject to other Fed­ White House Milk Co., Manitowoc, Wis. suant to § 923.51 shall be increased or eral orders. A plant specified in para­ White House Milk Co., West Bend, Wis. ' decreased, respectively, for each one- graph (a) or (b) of this section shall tenth percent butterfat at the appropri­ be considered as a nonfluid milk plant add an amount computed by multiplying ate rate determined as follows: except that the operator of such plant the Chicago butter price for the month (a) Class I price. Multiply by 0.12 shall, with respect to the total receipts by 0.6. the average of the daily wholesale prices and utilization or disposition of skim (b) The price per hundredweight (using the midpoint of any price range milk and butterfat at the plant, make computed as follows: Multiply the Chi­ as one price) of 92-score bulk creamery reports to the market administrator at Saturday, September 11, 1954 FEDERAL REGISTER 5913

such time and in such manner as the milk received by such handler. The re­ § 923.81 Computation of base. The market administrator may require (in sult, less any fraction of a cent per base of each producer to be applied dur­ lieu of the reports required pursuant to hundredweight, shall be known as the ing the months of April through August § 923.30), and allow verification of such uniform price for such handler for milk shall be a quantity of milk calculated by reports by the market administrator. of 4.0 percent butterfat content, f. o. b. the market administrator in the follow­ (a) Any plant qualified pursuant to market. ing manner: Multiply the daily base of § 923.7 (a) which would be subject to § 923.72 Computation of the uniform such producer by the number of days the classification and pricing provisions prices for base milk and for excess milk such producer’s milk was received by of another order issued pursuant to the for handlers. For each of the months of such handler during the month: Pro­ act unless the Secretary determines that April through August, the market ad­ vided, That if the producer’s milk was a greater volume of Class I milk is dis­ ministrator shall compute uniform not received on a daily basis, the daily posed of from such plant to retail or prices for base milk and for excess milk base shall be multiplied by the number wholesale outlets (except fluid milk received by each handler as follows: of days during the month for which the plants) in the Appalachian marketing (a) Add to the amount computed pur­ milk production of such producer was area than in the marketing area regu­ suant to § 923.70 the total of the location received by such handler. lated pursuant to such other order. differential deductions made pursuant to § 923.82 Base rules. The following (b) Any plant qualified pursuant to § 923.92; rules shall apply in conection with the §923.7 (b) or (c) which would be sub­ (b) Add or subtract for each one- * establishment of bases: ject to the classification and pricing pro­ tenth percent that the average butter­ (a) A base shall be assigned to the visions of another order issued pursuant fat content of producer milk received producer for whose account milk is re­ to the act unless such plant has qualified by such handler is less or more, respec­ ceived at a fluid milk plant during the as a fluid milk plant pursuant to § 923.7 tively, than 4.0 percent, an amount com­ months of September through February. (c) for each month during the preceding puted by multiplying such difference by (b) Bases may be transferred by noti­ August through January period. the butterfat differential to producers,. fying the market administrator in writ­ DETERMINATION OP UNIFORM PRICE and multiplying the result by the total ing before the last day of any month for hundredweight of producer milk; which such base is to be transferred to § 923.70 Net obligation of handlers. (c) Add the amount represented by the person named in such notice only as The net obligation of each handler for any deductions made for eliminating follows: producer milk received at his fluid milk fractions of a cent in computing the (1) In the event of the death, retire­ plant (s) during each month shall be a uniform price(s) for such handler for ment, or entry into military service of a sum of money computed by the market the preceding month; producer, the entire base may be trans­ administrator as follows: (a) Multiply (d) Subject to the conditions set ferred to a member of such producer’s the pounds of such milk in each class forth in paragraph (e) of this section, immediate family who carries on the by the applicable class price; (b) add compute the value of excess milk re­ dairy operations. together the resulting amounts; (c) add ceived by such handler from producers (2) If a base is held jointly and such the amounts computed by multiplying by multiplying the quantity of such milk joint holding is terminated, the entire the pounds of overage deducted from by the Class I I price; base may be transferred to one of the each class by the applicable class price; (e) Compute the value of base milk joint holders. (d) add or subtract, as the case may be, received by such handler from producers (3) The entire daily base of a pro­ an amount necessary to correct errors by subtracting the value obtained pur­ ducer may be removed from one handler discovered by the market administrator suant to paragraph (d) of this section to another handler. in the verification of reports of such from the value obtained pursuant to handler of his receipts and utilization paragraph (c) of this section: Provided, § 923.83 Announcement of established of skim milk and butterfat for previous That if such resulting value is greater bases. On or before April 1 of each year, months; and (e) add the amount ob­ than an amount computed by multiply­ the market administrator shall notify tained in multiplying the difference be­ ing the pounds of such base milk by the each producer and the handler receiving tween the Class II price for the preced­ Class I price, such value in excess there­ milk from such producer of the daily base ing month and the Class I price for the of shall be added to the value computed established by such producer. current month by the hundredweight of pursuant to paragraph (d) of this sec­ PAYMENTS producer milk classified in Class n dur­ tion; § 923.90 Paym ents to producers. ing the preceding month, or the hun­ (f) Divide the value obtained pur­ dredweight of milk subtracted from Each handler shall make payment to suant to paragraph (e) of this section each producer for milk received from Class I pursuant to § 923.46 (a) (4) and by the hundredweight of base milk. (b), whichever is less. such producer as follows: This result, less any fraction of a cent (a) On or before the 15th day after § 923.71 Computation of uniform per hundredweight, shall be known as the end of each month, each handler prices for handlers. For each of the the uniform price for such handler for shall make payment to each producer months of September through March, base milk of 4.0 percent butterfat con­ for milk which was received from him the market administrator shall compute tent, f. o. b. market; and during the month at not less than the a uniform price for the producer milk (g) Divide the value obtained pur­ uniform price computed pursuant to received by each handled as follows: suant to paragraph (d) of this section § 923.71 for the months of September (a) Add to the amount computed pur­ by the hundredweight of excess milk in through March, and at not less than the suant to § 923.70 the total of the location producer milk. This result, less any uniform price for base milk computed differential deductions to be made pur­ fraction of a cent per hundredweight, pursuant to § 923.72 with respect to base suant to § 923.92; shall be known as the uniform price for milk received from such producer and (b) Add or subtract for each one-tenth such handler for excess milk of 4.0 per­ at not less than the uniform price for percent that the average butterfat con­ cent butterfat content. excess milk computed pursuant to tent of producer milk received by such § 923.72 with respect to excess milk re­ handler is less or more, respectively, than BASE RATING ceived from such producer for the 4.0 percent, an amount computed by § 923.80 Determination of daily base. months of April through August, sub­ multiplying such difference by the but­ The daily base of each producer shall be ject to the following adjustments: (1) terfat differential to producers, and calculated by the market administrator The butterfat differential pursuant to multiplying the result by the total as follows: Divide the total pounds of § 923.91, (2) the location differential hundredweight of producer milk; pursuant to § 923.92, (3) marketing milk received by all handlers from such (c) Add the amount represented by service deductions pursuant to § 923.95, any deductions made for eliminating producer during the months of Septem­ (4) proper deductions authorized in fractions of a cent in computing the uni­ ber through February by the number of writing by the producer, and (5) adjust­ form price (s) for such handler for the days from the fjrst day milk is received ments for errors in calculating payment preceding month; from such producer during said months to such individual producer for past (d) Divide the resulting amount by to the last day of February, inclusive, months: Provided, That with respect to the total hundredweight of producer but not less than 120 days. producers whose milk was caused to be 5914 PROPOSED RULE MAKING

delivered to such handler by a coopera­ notify such handler of any amount so ceived the handler’s utilization report on tive association which is authorized to due, and payment thereof shall be made the milk involved in such obligation, un­ collect payment for such milk, the han­ on or before the next date for making less within such two-year period the dler shall, if requested by the coopera­ payments, as set forth in the provisions market administrator notifies the han­ tive association, pay such cooperative under which such error occurred. dler in writing that such money is due association on or before the 13th day § 923.94 Marketing services, (a) Ex­ and payable. Service of such notice after the end of each month, an amount shall be complete upon mailing to the equal to the sum of the individual pay­ cept as set forth in paragraph (b) of this section, each handler, in making pay­ handler’s last known address, and it ments otherwise payable to such pro­ shall contain, but need not be limited to ducers in accordance with this para­ ments to producers for milk (other than milk of his own production) pursuant to the following information: graph; (1) The amount of the obligation: (b) In making the payments to pro­ § 923.90, shall deduct 6 cents per hun­ dredweight, or such amount not exceed­ (2) The month (s) during which the ducers pursuant to paragraph (a) of milk, with respect to which the obliga­ this section, each handler shall furnish ing 6 cents per hundredweight, as may be prescribed by the Secretary, and shall tion exists, was received or handled; and each producer from whom he has re­ (3) If the obligation is payable to one ceived milk with a supporting statement pay such deductions to the market ad­ ministrator on or before the 15th day or more producers or to an association in such form that it may be retained by of producers, the name of such pro­ the producer, which shall show for each after the end of each month. Such moneys shall be used by the market ad­ ducer^) or association erf producers, or month: if the obligation is payable to the mar­ (1) The month and identity of the ministrator to provide market informa­ tion and to check the accuracy of the ket administrator, the account for handler and of the producer; which it is to be paid. (2) The daily and total pounds and testing and weighing of their milk for the average butterfat content of milk re­ producers who are not receiving such (b) If a handler fails or refuses, with ceived from such producer; service from a cooperative association. respect to any obligation under this (3) Hie minimum rate or rates at (b) In the case of producers who are part, to make available to the market which payment to such producer is re­ members of a cooperative association administrator or his representatives all quired pursuant to the order; which the Secretary has determined is books and records required by this part (4) The rate which is used in making actually performing the services set to be made available, the market admin­ the payment, if such rate is other than forth in paragraph (a) of this section, istrator may, within the two-year period the applicable minimum rate; each handler shall make, in lieu of the provided for in paragraph (a) of this (5) The amount or the rate per hun­ deductions specified in paragraph (a) section, notify the handler in writing of dredweight and nature of each deduc­ of this section, such deductions from the such failure or refusal. If the market tion claimed by the handler; and payments to be made to such producers administrator so notifies a handler, the <6) The net amount of payment to as may be authorized by the membership said two-year period with respect to such producer. agreement or marketing contract be­ such obligation shall not begin to run tween such cooperative association and until the first day of the calendar month § 923.91 Butterfat differential to pro­ such producers on or before the 15th day following the month during which all ducers. The applicable uniform prices after the end of each month, and pay such books and records pertaining to to be paid each producer pursuant to such deductions to the cooperative as­ such obligation are made available to § 923.90 shall be increased or decreased sociation of which such producers are the market administrator or his repre­ for each one-tenth of one percent which members, furnishing a statement show­ sentatives. the butterfat content of his milk is above ing the amount of any such deductions c) Notwithstanding the provisions of or below 4.0 percent, respectively, at the and the amount and average butterfat paragraphs (a) and (b) of this section, rate determined by multiplying the test of milk for which such deduction a handler's obligation under this part to pounds of butterfat in the producer milk was computed for each producer. In pay money shall not be terminated with of such handler allocated to Class I and lieu of this statement, a handler may respect to any transaction involving Class n milk pursuant to § 923.46 (b) by authorize the market administrator to fraud or wilful concealment of a fact, the respective butterfat differential for furnish such cooperative association the material to the obligation, on the part each class, dividing the sum .of such val­ information reported for such producers of the handler against whom the obliga­ ues by the total pounds of such butter­ pursuant to § 923.90 (b). tion is sought to be imposed. fat, and rounding the resultant figure (d) Any obligation on the part of the to the nearest one-tenth of a cent. § 923.95 Expense of administration. As his pro rata share of the expense of market administrator to pay a handler '• § 923.92 Location differential to pro­ administration of this part, each handler any money which such handler claims ducers. In making payment to producers shall pay to the market administrator to be due him under the terms of this pursuant to § 923.90, the applicable uni­ on or before the 15th day after the end part shall terminate two years after the form prices to be paid for producer milk end of the calendar month during which of the month for such month 5 cents the milk involved in the claim was re­ received a t a fluid milk plant located per hundredweight, or such amount not outside the marketing area and 50 miles exceeding 5 cents per hundredweight, ceived if an underpayment is claimed, or more from the city limits of Kings­ as the Secretary may prescribe with re­ or two years after the end of the calen­ port, Tennessee, by the shortest hard­ spect to all (a) receipts of producer miiir dar month during which the payment surfaced highway distance, as deter­ including such handler’s own produc­ (including deduction or set-off by the mined by the market administrator, shall market administrator) was made by the tion, (b) other source milk at a fluid handler if a refund on such payment is be reduced according to the location of milk plant which is classified as Class I the fluid milk plant where such milk was milk and, (c) Class I disposed of during claimed, unless such handler within the applicable period of time, files, pursu­ received at the following rate: the month on routes (including routes Distance from the city Bate per ant to section 8c (15) (A) of the act, a operated by vendors) to retail or whole­ petition claiming such money. limits of Kingsport hundredweight sale outlets (except fluid milk plants) (miles) : {cents) located in the marketing area from a 50 but less than 60______10 EFFECTIVE TIME, SUSPENSION, OR For each additional 10 miles or frac­ nonfluid milk plant. TERMINATION tion thereof an additional«.,____ %. 5 § 923.96 Termination of obligations. § 923.100 Effective time. The provi­ § 923.93 Adjustment of accounts. The provisions of this section shall apply sions of this part or any amendment to Whenever audit by the market adminis­ to any obligation under this part for the this part shall become effective at such trator of any handler’s reports, books, payment of money. time as the Secretary may declare and records, accounts, or verification of (a) The obligation of any handler to shall continue in force until suspended weights and butterfat tests of milk or pay money required to be paid under or terminated pursuant to § 923.101. the terms of this part shall, except as milk products disclose errors, resulting § 923.101 Suspension or termination. in money due a producer or the market provided in paragraphs (b) and (c) of The Secretary may suspend or terminate administrator from such handler, or due this section, terminate two years after this part or any provisions of this part such handler from the market adminis­ the last day of the calendar month dur- M whenever he finds this part or any pro- trator, the market administrator shall ing which the market administrator re-1 l visions of this part obstructs or does not Saturday, September 11, 1954 FEDERAL REGISTER 5915 tend to effectuate the declared policy of crop of upland cotton, to provide for of cotton for the five years immediately the act. This part shall terminate, in conversion of such quota into a national preceding the calendar year in which the any event, whenever the provisions of acreage allotment, and to formulate national marketing quota is proclaimed, the act authorizing it cease to be in regulations for apportioning the national required to make available from such effect. acreage allotment to States and the crop an amount of cotton equal to the State acreage allotments to counties, and § 923.102 Continuing obligations. If, national marketing quota. for establishing farm acreage allotments. If a national acreage allotment is pro­ upon the suspension or termination of Section 342 of the act provides that any or all provisions of this part, there claimed for the 1955 crop of upland cot­ whenever during any calendar year the ton, such allotment would be apportioned are any obligations thereunder, the final Secretary of Agriculture determihes that accrual or ascertainment of which re­ to the States as provided by section 344 the total supply of cotton for the mar­ (b) of the act and Public Law 28, 81st quires further acts by any person (in­ keting year beginning in such calendar cluding the market administrator), such Congress (63 Stat. 17), on the basis of year will exceed the normal supply for the acreage planted to cotton during the further acts shall be performed notwith­ such marketing year, the Secretary shall standing such suspension or termination. five calendar years 1948,1950,1951,1952, proclaim such fact and a national mar­ and 1953, with adjustment» for abnormal § 923.103 Liquidation. Upon the sus­ keting quota shall be in effect for the weather conditions during such period. pension or termination of the provisions crop of cotton produced in the next cal­ It is expected that the regulations per­ of this part, except this section, the mar­ endar year. This section provides fur­ taining to the apportionment of the ket administrator, or such liquidating ther that the Secretary shall also deter­ State acreage allotment among counties agent as the Secretary may designate, mine and specify in such proclamation and farms will be substantially the same shall, if so directed by the Secretary, the amount of the national marketing as the regulations issued with respect to liquidate the business of the market quota in terms of the number of bales the 1954 crop of upland cotton, including administrator’s office, dispose of all prop­ of cotton adequate, together with (1) amendments (18 P. R. 7527, 7836; 19 erty in his possessipn or control, include the estimated carry-over at the begin­ P. R. 4, 761, 1481), except for provisions ing accounts receivable, and execute and ning of the marketing year which begins made applicable for 1954 only by Public deliver all assignment or other instru­ in the next calendar year and (2) the Law 290, 83d Congress, approved Janu­ ments necessary or appropriate to effec­ estimated imports during such market­ ary 30, 1954. Public Law 290 also tuate any such disposition. If a liquidat­ ing year, to make available a normal amended the act to provide for making ing agent is so designated, all assets, supply of cotton. Under the provisions adjustments, beginning with the 1955 books, and records of the market admin­ of this section of the act the national crop of cotton, in farm acreage allot­ istrator shall be transferred promptly to marketing quota for any year may not ments to correct inequities and to prevent such liquidating agent. If, upon such be less than ten million bales or one hardships. This is one of the purposes liquidation, the funds on hand exceed million bales less than the estimated provided by law for using State and the amounts required to pay outstand­ domestic consumption plus exports of county acreage reserves. Heretofore, ing obligations of the office of the market cotton for the marketing year énding farm cotton acreage allotments estab­ administrator and to pay necessary ex­ in the calendar year in which such quota lished under the Agricultural Adjustment penses of liquidating and distribution, is proclaimed, whichever is smaller. Act of 1938, as amended, other than such excess shall be distributed to con­ The proclamation of the national mar­ minimum farm allotments, have been tributing handlers and producers in an keting quota is required to be made not determined by multiplying the adjusted equitable manner. later than October 15 of the calendar cropland for the farm by a uniform MISCELLANEOUS PROVISIONS year in which the determination is made county (or administrative area) cropland th^tt the total supply of cotton exceeds factor. Section 344 (f) of the act, as § 923.110 Agents. The Secretary the normal supply. > amended by Public Law 290 and by Public may, by designation in writing, name any As defined in section 301 of the act, Law 690, 83d Congress, approved August officer or employee of the United States for purposes of the determinations pro­ 28, 1954, provides, beginning with the to act as his Agent or Representative in vided for in section 342 of the act, “total 1955 crop of cotton, for apportioning the connection with any of the provisions of supply” of cotton for any marketing year county acreage allotment, less the county this part. is the carry-over at the beginning of acreage reserve, among farms on which § 923.111 Separability of provisions. such marketing year, plus the estimated cotton has been planted in any one of If any provision of this part, or its ap­ production of cotton in the United States the three years immediately preceding plication to any person or circumstances during the calendar year in which such the year for which such allotment is de­ is held invalid, the application of such marketing year begins, and the esti­ termined on the basis of the acreage provision and of the remaining provi­ mated imports of cotton into the United planted to cotton on the farm during sions of this part, to other persons or States during such marketing year ; such three-year period, if the county circumstances shall not be affected “carry-over” of cotton for any market­ committee recommends such action and thereby. ing year is the quantity of cotton on hand the Secretary determines that such in the United States at the beginning of action will result in a more equitable [P. R. Doc. 54-7177; Filed, Sept. 10, 1954; distribution of the county acreage allot­ 8:55 a. m.] such marketing year, not including any part of the crop which was produced in ment among farms in the county. It is the United States during the calendar expected that all county committees will year then current; “normal supply” of carefully consider the authorization in cotton for any marketing year is the es­ the law to apportion the county acreage Commodity Stabilization Service timated domestic consumption of cot­ allotment, less the county acreage re­ [ 7 CFR Part 722 ] ton for the marketing year for which serve, among farms on the basis of cotton such normal supply is being determined, acreage history during the three pre­ 1955 Crop op U pland Cotton plus the estimated exports of cotton for ceding years rather than on the basis of NOTICE OP DETERMINATIONS TO BE MADE such marketing year, plus 30 per centum cropland, as described above. Under WITH RESPECT TO A NATIONAL MARKETING of such consumption and exports as an Public Law 690, county committees will QUOTA, NATIONAL, STATE, AND COUNTY allowance for carry-over; and “market­ have wider latitude in establishing farm ACREAGE ALLOTMENTS, AND FORMULATION ing year” for cotton is the period August cotton acreage allotments on a history OP REGULATIONS PERTAINING TO FARM 1-July 31. basis under section 344 (f) (6) of the ACREAGE«. ALLOTMENTS Section 344 (a) of the act provides that Agricultural Adjustment Act of 1938, as whenever a national marketing quota is amended, in that they may in their dis­ Pursuant to the authority contained proclaimed under section 342, the Secre­ cretion (1) apportion the county cotton in applicable provisions of the Agricul­ acreage allotment by first establishing tural Adjustment Act of 1938, as amended tary shall determine and proclaim a na­ minimum farm acreage allotments as (7 U. S. C. 1301, 1342, 1355, 1357, 1362, tional acreage allotment for the crop of provided in section 344 (f) (1) of the 1363, 1365, 1373), the Secretary of Agri­ cotton to be produced in the next calen­ act before apportioning the remaining culture is preparing to determine dar year. The national acreage allot­ acreage among farms and (2) limit any whether a national marketing quota is ment for cotton is that acreage, based farm acreage allotment established on required to be proclaimed for the 1955 upon the national average yield per acre the basis of cotton acreage history during 5916 PROPOSED RULE MAKING the three preceding years to an acreage It is the Secretary’s intention to delay fore taking final action on the proposed not in excess of 50% of the cropland on the determinations provided for in sec­ rule.” the farm. tion 342 of the act until the October 8, (Sec. 205 (a ); 52 Stat. 984; 49 U. S. C. 425. It is expected that the Secretary’s 1954, cotton report of the Crop Report­ Interpret or apply section 407; 52 Stat. 1000* authority to approve or disapprove rec­ ing Board of the Department is issued 49 U. S. C. 487) ommendations of county committees re­ in order that the latest available data garding apportionment of the county may be used. In the meantime, it is By the Civil Aeronautics Board.r acreage allotment among farms on the expected that the regulations discussed [seal] M. C. Mulligan, basis of cotton acreage history will be above will be issued subject to the condi­ Secretary. redelegated to the Deputy Administra­ tion that they shall become ineffective tor for Production Adjustment, Com­ for purposes of the marketing quota [F. R. Doc. 54-7183; Filed, Sept. 9, 1954; modity Stabilization Service, and that program in the event a national market­ 4:01 p, m.] the Deputy Administrator will issue such ing quota program for the 1955 crop of instructions as may be necessary for upland cotton -is not proclaimed by carrying out this new provision of law. October 15, 1954. FEDERAL COMMUNICATIONS In this connection, it appears that it Prior to making any of the foregoing COMMISSION will be necessary for the Deputy Ad­ determinations with respect to the na­ ministrator to set a closing date for such tional marketing quota, the national [4 7 CFR Part 31 recommendations to be filed in order acreage allotment, the apportionment [Docket No. 11158; FCC 54-1122] that the many computations and deter­ of the national acreage allotment to T elevision B roadcast Stations minations incident to the establishment States and the State acreage allotments of farm acreage allotments may be com­ to counties, and the formulation of regu­ table of assignments pleted and allotment notices issued to lations for the establishment of farm acreage allotments for the 1955 crop of 1. Notice is hereby given that the farm operators prior to the referendum Commission has received a proposal for which is required by the Act to be held upland cotton, consideration will be given to any data, views, and recom­ rule making in the above-entitled not later than December 15, 1954. matter. It is proposed to change the provisions mendations pertaining thereto which are submitted in writing to the Director, 2. The Commission has before it a which were contained in the 1954 regu­ petition filed on June 16, 1954, and lations regarding the reconstitution of Cotton Division, Commodity Stabiliza­ tion Service, United States Department amended on July 8, 1954, by the Mid­ farms. Under one proposal being con­ continent Broadcasting Company, Sioux sidered, where reconstitution of farms of Agriculture, Washington 25, D. C. within fifteen days following the publi­ Falls, South Dakota, and now made part are made for 1955 after farm acreage of this docket, requesting an amendment allotments for 1955 are established prior cation of this notice in the F édérai. R egister. The date of the postmark of § 3.606 Table of assignments, rules to the referendum, the allotments for governing television broadcast stations the reconstituted farms would be deter­ will be considered as the date of any submission. so as to change the offset carrier re­ mined on the basis of the revised data, quirement only of Channel 11 as follows: provided notice of the change in land in Done at Washington, D. C., this 9th the farm is received in the county ASC day of September 1954. office by a closing date which will be a Channel No. date prior to the general date for pre­ [seal] J. A. McConnell, City paring land for cotton production. In Administrator. Present Proposed cases where the county ASC office is [P; R. Doc. 54-7192; Piled, Sept. 9, 1954; not advised of the change in land in the 4:39 p. m.] International Falls, Minn ... 11+ 11 farm by the closing date, the same pro­ Fargo, N. Dak______11 11+ cedure would be followed in establishing the farm acreage allotments for the re­ CIVIL AERONAUTICS BOARD 3. In support of the propsed amend­ constituted farms, except that (1) in the ment petitioner urges that it is the per­ case of subdivisions the allotments for [ 14 CFR Part 241 ] mittee of television Station KELO-TV the several tracts could not exceed the [Economic Regs. Draft Release 68A] operating on Channel 11 with zero offset allotment previously established for carrier at Sioux Falls, North Dakota; the parent farm except to the extent R evised Uniform System of Accounts that this station is only 234 miles from required by the minimum allotment pro­ and R eports for Certificated Air the assignment of Channel 11 at Fargo, visions, and (2) in the case of a com­ Carriers North Dakota, also with zero offset car­ bination (a) the allotment for the SUPPLEMENTAL NOTICE OF PROPOSED rier; that such operation may needless­ reconstituted farm could not exceed the RULE MAKING ly deprive a large area and population sum of the allotments for the several of a television broadcast service; and tracts comprising the reconstitutéd S eptember 9, 1954. that the proposed changes comply with farm, and (b) the allotment for the re­ In the notice of proposed rule making the Commission’s rules and standards. constituted farm would be subject to the on this matter, published in the F ederal 4. Authority for the adoption of the maximum farm allotment provision if R egister on July 9, 1954 (19 F. R. 2400), proposed amendments is contained in it is applicable in the county. Under it was stated that the Board would con­ sections 4 (i), 301, 303 (c), (d), (f), another proposal being considered, sider all relevant matter and communi­ and (r) and 307 (b) of the Communica­ where reconstitutions of farms are made cations received on or before September tions Act of 1934, as amended. for 1955 after farm acreage allotments 10,1954. The Board has been requested 5. Anyinterested party who is of the for 1955 are established prior to the ref­ by several interested parties to extend opinion that the amendment proposed erendum, the allotments for all recon- the date by which comments must be by petitioner should not be adopted or constituted farms would be éstablished filed by at least one week. Since the should not be adopted in the form set as follows: (1) In the case of subdivisions Draft Release proposed a complete re­ forth herein may file with the Com­ the allotments for the several tracts vision of the Uniform System of Accounts mission on or before October 4, 1954, a could not exceed the allotment pre­ and the CAB Form 41 Report, matters of written statement or brief setting forth viously established for the parent farm great importance to all scheduled air his comments. Comments in support except to the extent required by the carriers, the Board finds that a one week of the proposed amendment may also be minimum allotment provisions, and (2) extension for return of comment should filed on or before the same date. Com­ in the case of a combination (a) the al­ be granted in order to allow this addi­ ments or briefs in reply to the original lotment for the reconstituted farm could tional comment to be submitted. comments may be filed within 10 days not exceed the sum of the allotments for Accordingly, the second sentence of the from the last day for filing said original the several tracts comprising the recon­ second paragraph of the aforementioned comments or briefs. No additional com­ stituted farm, and (b) the allotment for notice is amended to read as follows: ments may be filed unless (1) specifically the reconstituted farm would be subject “All relevant matter and communica­ requested by the Commission or (2) good to the maximum farm allotment provi­ tions received on or before September cause for the filing of such additional sion if it is applicable in the county. 17 will be considered by the Board be­ comments is established. The Com- Saturday, September 11, 1954 FEDERAL REGISTER 5917 mission will consider all such comments 6. Any interested person who is of the HOUSING AND HOME that are submitted before taking action opinion that the proposed amendment in this matter, and if any comments should not be adopted, or should not be FINANCE AGENCY appear to warrant the holding of a hear­ adopted in the form set forth herein, ing or oral argument, notice of the time may file with the Commission on or be­ Home Loan Bank Board and place of such hearing or oral argu­ fore November 15, 1954 written data, [ 24 CFR Parts 144, 145 ] ment will be given. views, or arguments setting forth his 6. In accordance with the provisions comments. Comments in support of the [No. 7616] of § 1.764 of the Commission’s rules and proposed amendment may also be filed Charter and B y la w s; Operation regulations, an original and 14 copies of on or before the same date. Comments all statements, briefs, or comments shall in reply to the original comments may ACTION ON PROPOSAL TO LIBERALIZE BONUS be furnished the Commission. be filed within 15 days from the last day PROVISIONS Adopted: September 2, 1954. for filing said original data, views, or arguments. No additional comments S eptember 7, 1954. Released: September 7, 1954. may be filed unless (1) specifically re­ Whereas, pursuant to notice duly pub­ lished in the June 10, 1952 issue of the F ederal Communications quested by the Commission, or (2) good cause for the filing of such additional F ederal R egister (17 F. R. 5255), a hear­ Commission, ing was held on July 10, 1952, upon a I [seal] Mary J ane Morris, comments is established. The Commis­ Secretary. sion will consider all such comments proposal by this Board, as set forth in prior to taking final action in this mat­ its Resolution No. 5235, dated June 4, [F. R. Doc. 54-7149; Filed, Sept. 10, 1954; ter, and if comments are submitted war­ 8:52 a, m.] 1952,- to adopt, among other things, cer­ ranting oral argument, notice of the tain amendments to the rules and regu­ time and place of such oral argument lations for the Federal Savings and Loan will be given. [ 47 CFR Part 12 ] System relating to the payment of 7. In accordance with the provisions bonuses upon share accounts, and [Docket No. 11157; FCC 54-1110] of § 1.764 of the Commission’s rules, an Whereas, careful consideration has original and four copies of all statements, been given to such proposed amendments Amateur R adio S ervice briefs, or comments shall be furnished the Commission. concerning the payment of bonuses upon TECHNICIAN CLASS OPERATOR PRIVILEGES share accounts. I 1. Notice is hereby given of proposed Adopted: September 1, 1954. Resolved, that this Board hereby de­ rule making in the above-entitled matter. Released: September 7,1954. termines not to adopt the amendments 2. The Commission has before it for of paragraph (e) of £-144.6 Amendment [consideration petitions for rule making F ederal Communications Commission, to bylaws, and § 145.3 Bonus on savings filed by James M. Price and Tom A. accounts as set forth in its said Resolu­ ¡Walker. [ seal] M ary J ane Morris, 3. The petitions request amendment of Secretary. tion No. 5235 and as noticed for hearing on July 10, 1952. Part 12, rules governing Amateur Radio Amendment of § 12.23 (d) of Part 12, [Service, to permit operating privileges for rules governing Amateur Radio Service, (Sec. 5 (a) 48 Stat. 132; 12 U. S. C. 1464 (a )) ¡the Technician Class amateur operator is proposed as follows: By the Home Loan Bank Board. [in the 50-54 Me amateur frequency band. (d) Technician class. All authorized One petitioner states that: “The * * * amateur privileges in the amateur fre­ '[ seal] J F rancis Moore, petition is made in the interest of in- quency bands above 50 Megacycles. Secretary. [creased utilization of existing amateur [F. R. Doc. 54-7150; Filed, Sept. 10, 1954; [F. R, Doc. 54-7139; Filed, Sept. 10, 1954; [assignments and the improvement of 8:52 a. m.] 8:50 a. m.] ¡techniques in the VHP spectrum by ama­ teur operators * * *. The effect * * * would be to make available to those ama­ teurs holding Technician Class licenses one band of frequencies on which there exists the frequent possibility of two-way NOTICES communication by sporadic E layer propagation. This fact alone, it is an­ ticipated, will encourage immediate and DEPARTMENT OF THE INTERIOR 201.22. For the purposes of this sale representative participation by those the word “officer” in § 201.22 (a) (1) is licensees * * *. The beneficial by­ Bureau of Land Management . interpreted to include a duly authorized attorney in fact or representative of a product of such action would be the tap­ S ulphur L ease Offer ping of the skills possessed by such corporation. Bidders are warned against OUTER CONTINENTAL SHELF OFF LOUISIANA Violation of section 1860, Title 18, U. S. licensees for the improvement of present Code, prohibiting unlawful combination amateur VHF techniques.” Pursuant to section 8 of the Outer or intimidation of bidders. Bidders must 4. Believing that greater amateur Continental Shelf Lands Act (67 Stat. submit with each bid one-fifth of the occupancy of, and experimentation in, 462) and the regulations issued there­ amount bid in cash or by cashier’s check, the amateur frequency bands above 50 under (43 CFR Part 201), sealed bids bank draft, certified check, or money Me is desirable, the Commission is pro­ addressed to the Director, Bureau of order payable to the order of the Treas­ posing amendment of the rules to provide Land Management, Washington 25, urer of the United States. The leases for operatiijg privileges for Technician D. C., will be received on or before Oc­ will provide for a royalty rate of 7 Yz Class amateur operators in the 144-148 tober 13, 1954, at 11 a. m., e. s. t., for the percent of the gross production or value Me amateur frequency band as well as lease of sulphur in certain areas of the of the sulphur at the wellhead, but not the 50-54 Me band. In addition to the outer Continental Shelf, Gulf of Mexico, less than $1.50 a long ton, and a rental reasons given by the petitioners, the adjacent to the State of Louisiana. or minimum royalty of $2 per acre or Commission .believes that the tech­ Bids will be opened in the Department fraction thereof. nician’s value to, and participation in, of the Interior auditorium, Eighteenth civil defense communications through and C Streets NW. Bids may be de­ Bids will be considered on the basis the Radio Amateur Civil Emergency livered in person to the auditorium up of the highest cash bonus offered for a Service would be considerably enhanced to 11 a. m., e. s t., October 13, 1954. tract but no total bid amounting to less by the amendment proposed herein. Bids received by mail or delivered in than $15 per acre Will be considered. 5. Authority for issuance of the person after the above-specified time Sulphur payment, overriding royalty, amendment contained below is vested in will not be considered. logarithmic or sliding scale bids will not [the Commission by virtue of sections 4 All bids must be submitted in accord­ be considered. No bid for less than a Kj) and 303 (f ), (g), and (r) of the Com­ ance with applicable regulations, par­ full tract, as listed below, will be con­ munications Act of 1934, as amended. ticularly 43 CFR 201.20, 201.21, and sidered. The tract numbers shown are 5918 NOTICES

assigned only for the purposes of this E ugene I sland Official L easing M ap No. 4 [Misc. 66646] sale and are not the same as block num­ I daho bers designated on the official leasing Tract No. Acreage Block Description map.1 A separate bid in a separate, REVOKING DEPARTMENTAL ORDER OP APRIL 4 sealed .envelope must be submitted for La.-71-R ___ 6,000 157 All. 1908, WITHDRAWING. PUBLIC LANDS FOR Lâ.-72-S...... 6,000 158 All. . each tract. The envelope should be en­ La.-73-S 6,000- 171 All. USE OF THE FOREST SERVICE dorsed “Sealed bid for sulphur lease, La. La.-74-8 6,000 172 All. (insert number of tract), not to be La.-75-S...... 5.000 175 All. S eptember 7, 1954. La.-76-S 6.000 176 All. opened until 11 a. m., e. s. t., October 13, La.-77-S 5.000 180 All. Upon recommendation of the Depart­ 1954.” The right is reserved to reject La.-78-S...... 5.000 181 All. ment of Agriculture and in accordance La.-79-S 5.000 184 All. any or all bids. The tracts offered for L».-80-8 6.000 185 AH. with Departmental Order No. 2583, sec­ bid are as follows: tion 2.22 (a) of August 16, 1950, it is ordered as follows: W est Cameron Official L easing M ap No. 1 Ship Shoal Official L easing M ap No. 5 The order of the Assistant Secretary of the Interior of April 4, 1908, with­ T ract No. Acreage Block Description La.-81-S...... 5,000 168 All. La.-82-S...... 5,000 169 All. drawing the following-described public La.-83-S______5,000 170 All. lands in Idaho for use by the Forest L a .-l-S ...... __...... 5,000 245 All. La.-84-S______5,000 181 AH. L a.-2-S__...... 5,000 246 All. La.-85-S______6,000 182 All. Service as an administrative site, is L a .-3 -S .-_ ...... 5,000 248 All. La.-86-S...... 5,000 183 All. hereby revoked: L a.-4-S ...... 5,000 249 All. l/â._5 "S .______6,000 252 An. B o is e M e r id ia n L a .-6 -S ...... 6,000 253 All. South T imbalier Official L easing M ap No. 6 L a .-7 -S ...... 5,000 254 AH. T. 30 N., R. 4 E., L a.-8-S ______5,000 255 AH. Sec. 35, NE%NEi4, La.-9-S____...... __ 6,000 256 All. . La.-87-S...... r.____ 6,000 128 All. L a .-1 0 -S ._ ...... 6,000 257 All. La.-88-S______5,000 129 All. The tract described contains approxi­ L a .- ll- S ...... 5,000 258 All. La.- 8Ô-S— _____ 5,000 130 All. La.-90-S...... 2,148.46 131 All. mately 60 acres. La.-91-S...... 2,148.46 132 All. The lands, which comprise part of the E ast Cameron Official L easing M ap N o. 2 La.-92-S...... 6,000 133 All. La.-93-S...... 5,000 134 All. Nezperce National Forest, shall become La.-94-S...... 5,000 135 All. subject to the public-land laws relating L a.-12-S...... 5,000 96 All. La.-95-S...... 5,000 151 AH. La.-13-S...... 6,000 97 AH. La.-96-S...... 6,000 152 All. to national forest lands at 10:00 a. m. L a.-14-S...... 6,000 103 All. La.-15-S...... 5,000 104 AH. on the 35th day from the date of this L a.-16-S...... 6,000 105 AH. Grand I sle Official L easing M ap No. 7 order. L a .-1 7 -S ...... 2,114 n o AH. L a.-18-S...... 5,000 i n AH. E dward W oozley, La.-19-S...... 6,000 114 AH. La.-97-S...... 6,000 59 All. Director. L a .-2 0 -S ...... 6,000 115 AH. La.-98-S...... 5,000 60 All. La.-21-S...... 5,000 116 All. La.-99-S______4.539.89 61 AH. [P. R. Doc. 54-7121; Piled, Sept. 10, 1954; L a.-22-S...... 5,000 122 AH. La.-100-S.__...... 4.539.89 62 All. 8:47 a. m.] L a.-23-S...... 5,000 123 AH. La.-101-S...... 6; 000 63 All. L a.-24-S...... 5,000 126 AH. La.-102-S...... 6,000 64 All. La.-25-S...... 2,057.89 127 AH. La.-103-S...... 5.000 71 All. La.-26-S___...... 2,001.79 128 AH. La.-104-S...... 5.000 72 All. La.-27-S...... 5,000 129 All. L a -105^8...... 4.539.89 73 All. La.-28-S...... 5,000 137 All. La.-106-S...... 4.539.89 74 All. Bureau of Reclamation La.-29-S...... 5,000 138 All. La.-107-S___...... 5.000 75 All. La.-30-S.-__-.____ _ 6,000 139 All. La.-108-S...... 6,000 76 AH. La.-31-S—...... 5,000 140 All. H ammond P r o jec t , N e w M exico La.-32-S______5,000 151 All. La.-33-S...... 5,000 152 All. ~ ORDER OF REVOCATION L a .-3 4 -S ...... 5,000 153 All. Bidders are requested to submit their La.-35-S...... 6,000 . 154 All. D ecember L a.-36-S...... 5,000 155 AH. bids in the following form: 1, 1953. La.-37-S...... 5,000 156 All. D ir e c t o r , Pursuant to the authority delegated La.-38-S^.^.....: 5,000. 157 All. La.-39-S______6,000 158 AH. Bureau of Land Management, Department by Departmental Order No. 2515 of April La.-40-S ...... ' 5,000 160 All. of the Interior, Washington 25, D. C. 7, 1949 (14 F. R. 1937), I hereby revoke La.-41-S...... 5,000 161 All. La.-42"S...... 5,000 166 AH. S u l p h u r B id ' Departmental Order of October 11, 1944, L a.-43-S...... 5,000 167 All. La.-44-S...... 6,000 178 AH. OUTER CONTINENTAL SHELF insofar as said order affects the follow­ La.-45-S...... 5,000 179 All. The following bid is submitted for a sul­ ing described lands; provided, however, phur lease on land of the outer Continental that such revocation shall not affect the V ermilion Official L easing M ap N o. 3 Shelf specified below: withdrawal of any other lands by said A rea______;______» order or affect any other orders with-, La.-46-S...... 5,000 103 All. Official Leasing Map N o .______drawing or reserving the lands herein­ La.-47-S...... 6,000 104 AH. La.-48-S...... 6,000 116 AH. after described: La.-49-S...... 6,000 117 All. Total, Amount sub­ Ne w M e x ic o P r in c ip a l M e r id ia n , New Mexico La.-50-S______5,000 119 All. Tract No. amount Amount mitted with La.-51-S...... 6,000 120 AH. bid per acre bid La.-52-S...... 6,000 123 AH. T. 29 N.^R. 12 W., La.-53-S...... 5,000 124 AH. Sec. 28: N W ^SW ^. - La.-54-S...... 6,000 126 AH. La.-55-S...... 5,000 127 AH. The above areas aggregate 40.00 acres. La.-56-S...... 5,000 163 All. La.-57-S...... 6,000 164 All. W. A. D exh eim er , La.-58-S.i...... 5,000 165 AH. La.-59-S...... 6,000 178 AH. Commissioner. La.-60-S______5,000 179 AH. Signature La.“61-S._...... 6,000 180 AH. [Misc. 2003130] La.-62-S—...... 6,000 183 AH. Address La.-63-S—...... 5,000 184 All. S eptem ber 3, 1954. La.-64-S.___...... 6,000 185 AH. I m p o r t a n t La.-65-S...... _...... 5,000 188 AH. I concur. The records of the Bureau La.-66-S__ _ _.__ — 6,000 189 AH. Each bid must be accompanied by one- of Land Management will be noted ac­ La.-67-S__„_J______6,000 190 AH. fifth of the total amount bid. This amount La.-68-S______5,000 193 AH. cordingly. The lands are ’ reserved for La.-69-S...... 5,000 194 AH. may be in cash, money order, cashier’s La.-70-S...... 5,000 195 AH. check, certified check, or bank draft. A sep­ power site purposes by Executive order arate bid must be made for each tract. of July 2, 1910. / i Reduced copies of official leasing maps E dward W o o zley , E arl G. H arrington, for the area off Louisiana may be obtained Director, Acting Associate Director, at a cost of $1 per set from the Bureau Bureau of Land Management. of Land Management, Washington 25, D. C., Bureau of Land Management. or from the local office, 608 Masonic Temple {F . R. Doc. 54-7135; Piled, Sept. 10, 1954; [P. R. Doc. 54-7123; Filed, ^Sept. 10, 1954; Building, New Orleans 12, La. 8:45 a. m.l 8:47 a. m.J Saturday, Septem ber 11, 1954 FEDERAL REGISTER 5919

B lue R iv e r -S o u t h P l a t t e P r o je c t , lands; otherwise, priority of filing shall the following company as a reinsuring C olo rad o govern. company only on Federal bonds under Inquiries regarding the lands shall be Treasury Department Circular No. 297, ORDER OF REVOCATION addressed to the Manager, Land Office, July 15, 1922, as amended, 31 CFR Part May 12, 1954. Bureau of Land Management, Denver, 223. An underwriting limitation of $814,000.00 has been established for the Pursuant to the authority delegated by Colorado. W. G . G u e r n s e y , company. jepartmental Order No. 2515 of April 7, Acting Director, The London Assurance Company, London, 949 (14 P. R- 1937), I hereby revoke Bureau of Land Management. ' »epartmental Order of March 15, 1946, England (U. S. Office, New York, New York). i so far as said order affects the f ollow- [P. R. Doc. 54-7124; Filed, Sept. 10, 1954; [ s e a l ] A . N . O v e r b y , ng described land; provided, however, 8:47 a. m.] Acting Secretary of the Treasury. hat such revocation shall not affect the [F. R. Doc. 54-7137; Filed, Sept. 10, 1954; withdrawal of any other lands by said 8:50 a. m.] irder or affect any other orders with- Office of the Secretary Irawing or reserving the land herein- [Order 2583, Arndt. 11] tfter described: CIVIL AERONAUTICS BOARD B u r e a u o f L and M a n a g em en t S ix t h P r in c ip a l M e r id ia n , C olorado [Docket No. 3476] • 5 S., R. 77 W., SITES FOR RECREATIONAL OR ANY PUBLIC Sec. 8, SE^NW1^ and Lot 3. PURPOSE C i t y o f S io u x F a l l s , S . D a k . The above area aggregates 76.39 acres. S e p t e m b e r 3, 1954. POSTPONEMENT OF PREHEARING CONFERENCE N . B . B e n n e t t , Section 2.69 of Order No. 2583, as Notice is hereby given that the pre- Acting Asst. Commissioner. amended (15 P. R. 5643, 6997; 16 P. R. hearing conference in the above-en­ 6805; 17 P. R. 7513, 10486; 18 F. R. 161, [Misc. 2087156] titled proceeding, assigned to be held 3446, 5715; 19 F. R. 1021, 1937, 2555), is on September 14, 1954, is postponed to recaptioned and amended to read as S e p t e m b e r 7, 1954. September 16, 1954, at 10:00 a. m., follows: I concur. The records of the Bureau e. d. s. t., in Room 5859, Commerce Build­ Df Land Management will be noted ac- Sec. 2.69 Sites for recreational or any ing, Constitution Avenue, between ¡ordingly. ^ , public purpose. All actions with respect Fourteenth and Fifteenth Streets NW., The lands are located about one and to conveyances and leases to Federal, Washington, D. C., before Examiner >ne-half miles northeast of Dillon, Colo- State, Territorial, and local governmental Barron Fredricks. •ado, and adjacent to the Arapaho Na- units and to nonprofit associations and Dated at Washington, D. C., Septem­ iional Forest. They are made up mostly corporations pursuant to 43 CPR, Part ber 8, 1954. Df steep slopes with a thick cover of 254, and other applicable regulations. (Sec. 2, Reorg. Plan No. 3 of 1950; 5 U. S. C., [ s e a l ] F r a n c is W. B r o w n , odgepole pine over most of the area. C hief Exam iner. Kone of the timber is of commercial 1952 ed., sec. 133z-15, Note.) ralue. Clarence A. Davis, [F. R. Doc. 54-7157; Filed, Sept. 10, 1954; No application for the lands may be Acting Secretary of the Interior. 8:54 a. m.] illowed under the homestead, desert- [F. R. Doc. 54-7125; Filed, Sept. 10, 1954; land, small tract, or any other non- 8:48 a. m.] nineral public-land law Unless the land' FEDERAL COMMUNICATIONS lias already been classified as valuable COMMISSION Dr suitable for such type of application, DEPARTMENT OF THE TREASURY Dr shall be so classified upon the con­ [Docket No. 11156; FCC 54-1105] sideration of an application. Any appli­ Fiscal Service, Bureau of Accounts V an C u r l e r B roadcasting C o r p . (WTRI) cation that is filed will be considered on [Dept. Circ. 570, Rev. Apr. 20, 1943, 1954 MEMORANDUM OPINION AND ORDER DESIG­ its merits. The lands will not be subject 102d Supp.] to occupancy or disposition until they NATING APPLICATION FOR HEARING ON iiave been classified. M a r in e I n s u r a n c e Co. L td . STATED ISSUES This order shall not otherwise become a c c e p t a b l e r e in s u r in g c o m p a n ie s o n In re application of Van Curler Broad­ effective to change the status of the de­ FEDERAL BONDS casting Corporation (WTRI), Schenec­ tady, New York, for modification of con­ scribed lands until 10:00 a. m., on the S e p t e m b e r 7, 1954. 35th day after the date of this order. struction permit to change principal At that time the said lands shall become A Certificate of Authority has been community to Albany, New York, and to subject to application, petition, location issued by the Secretary of the Treasury maintain main studio outside Albany; and selection, subject to valid existing to the following company as a reinsur­ Docket No. 11156, File No. BMPCT-2201. fights, the provisions of existing with­ ing company only on Federal bonds 1. The Commission has before it for drawals, the requirements of applicable under Treasury Department Circular consideration (1) a “Petition to Recon­ laws, and the 91-day preference-right No. 297, July 15, 1922, as amended; 31 sider Grant and Designate Application filing period for veterans and others en­ CFR Part 223. An underwriting limita­ for Hearing” filed on August 5, 1954, titled to preference under the act of tion of $519,000.00 has been established pursuant to Sections 309 (c) and 405 of September 27, 1944 (58 Stat. 747; 43 for the company. the Communications Act of 1934, as U. S. C. 279-284), as amended. The Marine Insurance Company, Limited, amended, by Hudson Valley Broadcast­ Veterans preference-right applications London, England (U. S. Office, New York, ing Company, Inc. (Hudson Valley), under the act of September 27, 1944 (58 New York). permittee of television broadcast station Stat. 747; 43 U. S. C. 279-284) as [ s e a l ! A. N. O v e r b y , WROW-TV, Channel 41, Albany, New amended, may be filed on or before 10:00 Acting Secretary of the Treasury. York, protesting the Commission’s ac­ a- m., on the 35th day after the date of [F. R. Doc. 54-7136; Filed, Sept. 10, 1954; tion of July 7, 1954, granting without this order, and those covering the same 8:49 a. m.] hearing the above-entitled application land shall be treated as though simul­ and requesting rehearing or reconsid­ taneously filed at that time. Applica­ eration of such action; (2) an “Opposi­ tions filed under the act after that time [Dept. Circ. 570, Rev. Apr. 20, 1943, 1954 103d tion to Protest” filed on August 19,19541 and during the succeeding 91 days shall Supp.] by Van Curler Broadcasting Corporation be considered in the order of filing. (Van Curler); and (3) a “Reply to Op­ L o n d o n A s su r a n c e C o . Applications by the general public under position to Protest” filed by Hudson Valley on August 31, 1954. the public-land laws, filed on or before a c c e p t a b l e r e in s u r in g c o m p a n ie s o n FEDERAL BONDS [0:00 a. m., on the 126th day after the »The time for answering the subject pro­ iate of this order shall be treated as S e p t e m b e r 7,1954. test was extended by the Commission to pough simultaneously filed at that time, A Certificate of Authority has been August 19, 1954, upon a motion by Van There the applications are for the same issued by the Secretary of the Treasury to Curler which was not opposed. No. 177----- 6 5920 NOTICES

2. On Ju n e 10, 1953, the Commission instead of only one as formerly; that as gional and local advertising; that the granted the application (BPCT-408) of a result of the grant of the above-entitled grant herein makes Van Curler’s televi­ Van Curler for a permit to construct a application, Hudson Valley has been sion station, WTRI, an Albany station television station on Channel 35 assigned economically injured ahd will continue and, therefore, places it in direct com­ to Schenectady, New York. This appli­ to suffer economic injury; and that, petition with Hudson Valley’s television cation specified the main studio location therefore, it is a "party in interest” and station; and that Hudson Valley has as a site to be determined in ‘Schenec­ a “person aggrieved” within the purview alleged that it has been and will continue tady, and the transmitter site was desig­ of sections 309 (c) and 405, respectively, to be financially injured by the grant nated off Camp Pinnacle Road 2.2 miles of the Communications Act of 1934, as complained of, we find that Hudson Val­ west of New Salem, New York. On amended. r ley is a “party in interest” and an October 7, 1953, the Commission au­ 6. In support of its protest and petition "aggrieved party” within the meaning of thorized the change of transmitter loca­ for reconsideration, Hudson Valley al­ sections 309 (c) and 405, respectively, of tion to approximately two miles east of leges that it relied upon the Commis­ the Communications Act of 1934, as the northernmost boundary of Troy sion’s Sixth Report and Order in amended. In re Application of Kansas on Mt. Rafinesque. On November 5, calculating the competition it would State College of Agriculture and Applied 1953, Van Curler filed an application face as an Albany station; that if Van Science, 8 Pike & Fischer RR 261; In re (BMPCT-1550) which, as. amended on Curler is permitted to locate its main Application of Edwin G. Polan et al; November 16, 1953, specified the main studio on the outside of Albany, instead 8 Pike & Fischer RR 398; Versluis Radio studio location as 30-32 No. Pearl Street, of in Schenectady, Hudson Valley faces & Television, Inc., 9 Pike & Fischer RR Menands, New York. With this appli­ economic ruin; and that “* * * Van 102; In re T. E. Allen & Sons, Inc., 9 cation, Van Curler submitted a “Justifi­ Curler never intended to locate in the Pike & Fischer RR 197; In re Ohio Valley cation for locating main studio outside city of Schenectady and any representa­ Broadcasting Corporation, 10 Pike & of Schenectady, as provided for in tions that it would be a Schenectady out­ Fischer RR 452. § 3.613 (b) of the rules.” By letter let do not comport with the facts * * *” 9. Hudson Valley has specified the fol-i dated January 13, 1954, the Commission Finally, Hudson Valley requests that the lowing issues: advised the applicant that, on the basis Commission set aside the grant and 1. To determine the extent to which a! of the pleadings before it, there had designate the application for hearing on grant of the WTRI application will subject! been no showing made by the applicant the issues set forth in its pleading, to­ WROW to ruinous competition. consistent with the provisions of § 3.613 gether with such further issues as the . 2. To determine whether or not WTRI of the rules and that the change of Commission may prescribe; postpone the acted in good faith in applying for a con­ main studio location could not have been effective date of the Commission’s action struction permit for Schenectady in the granted without a hearing. Subse­ granting the application to the effective light of its efforts to locate the main studio quently, the request to locate main studio date of the Commission’s decision after elsewhere. hearing; and, pending such action on 3. To determine whether the competition outside Albany was withdrawn. resulting from the operation of its main 3. On January 18, 1954, Van Curler this petition, enter an order temporarily studio as proposed by WTRI is in the public requested special temporary authoriza­ staying the effective date of the grant.3 interest. tion to operate WTRI commercially pur­ 7. In its opposition to the instant peti­ 4. To determine whether the public in­ suant to the terms of. its construction tion, Van Curler urges, in substance, that terest will best be served by WTRI locating permit, as modified, except that (a) the Hudson Valley is not a “party in interest” its main studio near Albany, as proposed, or transmitter building would be used as a under section 309 fc) of the act because locating it in Schenectady. temporary emergency studio; and (b) it cannot show real and immediate injury resulting directly from the Commission’s It is clear that once a protestant has that a directional antenna would be established standing to protest as a party used. On January 20, 1954, the Com­ actions in granting the above-entitled ap­ plication; that its statements of injury in interest, it must then meet the fur­ mission granted said request. ther jurisdictional requirements of sec­ 4. On May 12, 1954 the Commission are wholly speculative and conjectural; and that Hudson Valley has set forth tion 309 (c) that the protestant “shall adopted a Report and Order in Docket specify with particularity- the facts, No. 10964, wherein it amended the Table only one basic factual allegation of loss of business and did not relate it to the matters, and things relied upon, but of Assignments by assigning Channel 35 shall not include issues or allegations: to “Albany-Schenectady-Troy”, New grant of the subject application. Van Curler also urges that the Commission’s phrased generally.” As we pointed out York in lieu of Schenectady. This in the Allen4 and Salinas8 cases, “The amendment was duly published in the action complained of is not subject to protest under section 309 (c) of the act clear import of this requirement is that! F ederal R egister (19 F . R. 2900) and be­ a protestant must do something more! came effective on June 18, 1954. There­ because it is only a “minor modification.” Finally, Van Curler urges that Hudson than set forth in his protest vague, non­ after, on June 21, 1954, Van Curler filed specific, conclusionary arguments and the ab6ve-entitle application requesting Valley’s protest does not state sufficient grounds for reconsideration of the Com­ allegations; he must allege those facts authority to specify Albany rather than upon which his conclusions as to the Schenectady as the principal city to be mission’s action, in that its claim that it will suffer ruinous competition is not suf­ impropriety of the Commission’s grant served, and to specify the main studio without hearing are predicted. These] location as 30-32 North Pearl Street, ficient cause for denying an application and is, therefore, irrelevant; that its facts must be alleged with specificity;] Menands, New York,2 the site referred they must be concrete, basic facts.” In to in paragraph 2 supra. Van Curler claim that Van Curler never intended to locate its studios in Schenectady is false, the instant case, we find that Hudson; submitted with the application a request Valley failed to comply with this basic: for waiver under § 3.613 (b) to permit and that, in any event, all of the facts cited to support that charge were known, jurisdictional requirement in the case of location of the main studio outside of issues “1”, “3” and “4” quoted above. Albany. The Commission granted the to, and considered by, the Commission application without hearing on July 7, when it granted Van Curler’s application; 10. ^With respect to issues “1” and “3”j 1954. and that its claim that it relied upon the specified by the protestant, we find thatj 5. In its protest, Hudson Valley alleges, Commission’s Sixth Report and Order the protestant has not alleged concrete,! in substance, that it is the operator of which assigned Channel 35 to Schenec­ basic facts, or for that matter, any other! television broadcast station WROW-TV, tady comes too late, since it unsuccess­ facts to support such issues. T h e fram-j Albany; that it is presently competing fully opposed subsequent rule making to ing of conclusionary issues standing! for operating revenues with four AM change Channel 35 to an “Albany- alone and unsupported by basic facts! stations (including its own); that as a Schenectady-Troy” assignment. does not meet the statutory requirement! result of the subject grant permitting 8. In light of the fact that Hudson for specificity under section 309 (c) of! W TRI to locate in Albany, it will be in Valley is the permittee of a television the act. Although the protestant has competition with two television stations broadcast station in Albany, New York; that it derives operating revenues from * In re Application of T. E. Allen & Sons, * This studio location is on the main that area from the sale of national, re- Inc., 9 Pike & Fischer RR 590a. thoroughfare into Albany, 75 feet from the 6 In re Applications of Salinas Broadcast­ Albany city line and 2>/% miles from the * This request was denied by the Commis­ ing Corporation et al., 9 Pike & F isch er RR main business district. sion by Order dated August 24, 1954. 695. Saturday, September 11, 1954 FEDERAL REGISTER 5921 set forth allegations of fact showing it fication of construction permit is desig­ braced by the Seattle, Washington to be a party in interest based on the nated for hearing at the offices of the Regional office; and economic injury which it will suffer, it Commission in Washington, D. C., on the It further appearing that the District did not allege a single fact in support following issues: office presently located at Juneau, Alaska of its first issue with respect to “ruinous (a) To determine whether or not should be transferred to Anchorage, competition.” And issue “3” is merely W TRI acted in good faith in applying for Alaska and that a District Sub-Office a broad, general conclusionary issue also a construction permit for Schenectady be established in Juneau. not related specifically to any facts set in the light of its efforts to locate the It is ordered, Pursuant to section 4 (i)’ forth in the protest. Furthermore, there main studio elsewhere. and 303 (r) of the Communications Act, are not even allegations in the pleading (b) To determine whether the public as amended, and section 3 (a) of the which can be construed as supporting interest will best be served by W TRI lo­ Administrative Procedure Act that Part the conclusions implied in issue “3” cating its main studio near Albany, as 0 of the Commission’s rules is hereby apart from the implied allegations in the proposed, or locating it in Schenectady. amended, effective September 15, 1954, issue itself.' (c) To determine, in the light of the as set forth below. 11. In support of issues “2” and “4” evidence adduced on the foregoing is­ Released: September 7, 1954. quoted above, Hudson Valley has related sues, whether the public interest, con­ the various steps which Van Curler has venience or necessity require that the F ederal Communications taken in changing its studio and trans­ grant of the subject application be va­ Commission, mitter locations up to and including the cated. [seal] Mary J ane Morris, Secretary. above-entitled application, through the The burden of proof as to each of the grant by which W TRI became an Albany above , issues shall be on the protestant. 1. Amend section 0.40 by adding under station. Upon the basis of such facts, 13. It is further ordered, That the pro­Region No. 4: District No. 23. Hudson Valley contends that Van Curler testant and the Chief of the Broadcast 2. Amend section 0.40 by deleting the never intended to locate in Schenectady, Bureau are hereby made parties to the listing under Regional Managers; “Re­ and had not acted in good faith in apply­ proceeding herein and that: gion No. 6, P. O. Box 644 (Rm. 52 U. S. ing originally for a construction permit (a) The hearing on the above issues P. O. and Courthouse), Anchorage, for Schenectady. Therefore, with re­ shall commence at 10:00 a. m. pn Sep­ Alaska—To include: District No. 23”. spect to issues “2” and “4” specified by tember 20, 1954, before an Examiner to 3. Amend section 0.40 by modifying the protestant, we find that it has stated be specified by the Commission; and the information contained under Radio with particularity the facts, matters and (b) The parties to the proceeding District No. 23 to read as follows: things relied upon as required by the herein shall have fifteen (15) days after P. O. Box 644, provisions of section 309 (c) to warrant the issuance of the Examiner’s decision Room 53, the designation of the above-entitled ap­ to file exceptions thereto and seven (7) U. S. P. O. and Courthouse Building, plication for hearing upon these issues. days thereafter to file replies to any such Anchorage, Alaska. However, in making this finding we do exceptions; and Sub-Office: P. O. Box 1421, 7-«, not determine or imply that even if the (c) The appearances by the parties in­ Shattuck Building, facts with respect to such issues are as tending to participate in the above hear­ Juneau, Alaska. alleged by the protestant, they are such ing shall be filed not later than Septem­ 4. Amend section 0.40 by renumbering that they would result in a determina­ ber 13,1954. tion that the grant to the applicant the Regional offices from 1 to 7 as fol­ herein was improper, contrary to the Adopted: September 1, .1954. lows: public interest or should be set aside. Released: September 7, 1954. Region No. 1, 954 Federal Building, 641 Accordingly, said issues are not being Washington Street, New York 14, N. Y.— adopted by the Commission and the . F ederal Communications To include: Districts Nos. 1, 2, 3, 4, 5, and 24. Commission, Region No. 2, 411 Federal Annex, Atlanta, burden of proof thereon both in proving Ga.—To include: Districts Nos. 6 , 7, 8 , 9, 10, the facts alleged and in demonstrating [seal! Mary J ane Morris, Secretary. and 2 2 . their materiality and relevancy will be Region No. 3, 323-A Customhouse, San on the protestant. [F. R. Doc. 54-7146; Filed, Sept. 10, 1954; Francisco 26, Calif.—To include: Districts 12. In view of the foregoing: It is 8:51 a. m.] Nos. 11, 12, and 15. ordered, That, insofar as the petition Region No. 4, 802 Federal Office Building, herein requests reconsideration of the Seattle 4, Wash;—To include: Districts Nos. 13, 14, and 23. Commission’s action of July 7,1954, pur­ Region No. 5, P. O. Box 1142, Lanikai, Oahu, suant to section 405 of the Communica­ [Rules Arndt. 0-28; FCC 54-1124] T. H.—To include: District No. 21. tions Act of 1934, as amended, it is Region No. 6 , 832 U. S. Courthouse, Chicago R egional Managers and District F ield denied, except with respect to the hear­ 4, m .—To include: Districts Nos. 16, 17, and ing provided for below; that, effective Office Areas 18. Region No. 7, 1029 New Federal Building, immediately, the effective date of the STATEMENTS OF ORGANIZATION, DELEGATIONS grant of the above-entitled application Detroit 26, Mich.—To include : Districts Nos. OF AUTHORITY AND PUBLIC INFORMA­ 19 and 20. is postponed pending a final determina­ TION tion by the Commission with respect to IF. R. Doc. 54-7147; Filed, Sept. 10, 1954; the protest herein of Hudson Valley In the matter of amendment of Part 8:51 a. m.] Broadcasting Company, Inc.; and that, 0 of the Commission’s rules and regula­ pursuant to section 309 (c) of the Com­ tions. Modification of section 0.40 with munications Act of 1934, as amended, reference to Regional Managers and FEDERAL CIVIL DEFENSE the above-entitled application for modi- District Field office areas. ADMINISTRATION At a session of the Federal Communi­ * There is a grave doubt as to whether a cations Commission held at its offices in [FCDA Delegation 2] showing of economic injury on the part of Washington, D. C., on the 2d day of S ecretary of Agriculture et al. a protestant would entitle him to a hearing September 1954; on an issue relating to the competition which The Commission having under con­ DELEGATION OF AUTHORITY W ITH RESPECT the protestant would suffer from the oper­ sideration further reduction in the num­ TO CERTAIN RESPONSIBILITIES ation of another station in his community. ber of Regional offices and reorganiza­ In the case of Voice of Cullman, 6 Pike & By virtue of the authority vested in me Fischer RR 164, we stated: “In the Sanders tion of the area embraced by its Seattle, by section 201 (b) of the Federal Civil Bros, case, the existing station had no right Washington, Regional office and reloca­ Defense Act of 1950 (64 Stat. 1248), and °f its own to protest; the fact of economic tion of its District office in Juneau, in the interest of the development of the tujury to it was not a factor in the Com­ Alaska; and / national civil-defense program contem­ mission’s determination, and the existing It appearing that the Anchorage, plated by the act, including action in sup­ station had standing before the Commission and the courts only to show any errors Alaska Regional office should be elim­ port of the States during a civil-defense '■? la^ that may have been committed by inated and that the Territory of Alaska emergency, I hereby delegate the follow­ toe Commission.” should be included, within the area em- ing-described responsibilities, as indi- 5922 NOTICES cated, to the Secretary of Agriculture, ers while engaged in civil-defense ac­ tion, for requesting such appropriations the Secretary of Commerce, the Attorney tivities. as may be required for his delegated General, the Secretary of Labor, and the 6. Plan a national program, developresponsibilities. Housing and Home Finance Administra­ technical guidance for States, and direct 5. Tfie designated officials shall make tor: Federal activities concerned with finan­ such reports as may be required by the The Secretary of Agriculture. 1. Plan cial assistance for temporary aid to Federal Civil Defense Administrator to a national program and direct Federal members of the labor force during pe­ insure consistency with national civil- activities concerned with research, diag­ riods of idleness due to destruction of defense policies and standards. nosis, strengthening of defensive barriers, working places through enemy action. and control or eradication of diseases, The Attorney Gerieral, Provide tech­ The provisions hereof shall become nical guidance to States concerning the effective upon the date of approval by pests, or chemicals introduced as agents the President. of biological or chemical warfare against protection of penal institutions and the animals or crops. control and utilization of prisoners and Dated: August 19, 1954. 2. Plan and direct Federal activities, facilities during a civil-defense emer­ Val P eterson, and provide technical guidance to States, gency. Federal Civil Defense Administrator.. in connection with an over-all food pro­ The Housing and Home Finance Ad­ gram aimed at maintaining adequate ministrator. 1. Conduct research and Approved: September 8,1954. emergency food supplies for attacked or provide technical guidance to the States Dwight D. E isenhower, support areas. concéming protectiye standards for new The White House. 3. Plan a national program, direct Fed­ housing construction and temporary eral activities, and provide technical shelter in existing housing facilities. [P. R. Doc. 54-7181; Filed, Sept. 9, 1954; guidance to States concerned with the 2. Plan a national program, provide 2:34 p. m.J prevention and control of fires caused technical guidance to the States, and by enemy attack in rural areas of the direct Federal activities concerned with United States. the provision of temporary emergency FEDERAL POWER COMMISSION The Secretary of Commerce. 1. Pro­ housing in support of areas subjected to [Docket No. G-2075] vide advice and guidance to State high­ enemy attack. way departments in the designation of 3. Plan a national program, develop T ranscontinental G as P ipe L ine Corp. State civil-defense emergency highway technical guidance for States, and direct ORDER FIXING DATE OF ORAL ARGUMENT routes.. Federal activities concerned with the emergency restoration of essential hous­ Public hearings were concluded March 2. Coordinate interstate and State 30,1954, and the filing of briefs was com­ designated civil-defense highway sys­ ing and those related community facili­ ties damaged by enemy action for which pleted on August 17, 1954, in the above- tems to assure uniformity of designation entitled proceeding which involves the for civil-defense emergency purposes. the agency normally has legal responsi­ question of whether Transcontinental 3. Plan a national program, develop bility. technical guidance for States, and direct General delegations. I hereby dele­ Gas Pipe Line Corporation (Transcon­ gate to the Secretary of Agriculture, the tinental) should be permitted to include Federal activities concerning emergency in its rate base an amount of $5,372,025, clearance and restoration of highways, Secretary of Commerce, the Secretary of streets, and bridges in damaged areas. Labor, the Attorney General, and the less related accrued depreciation of ap­ • 4. Provide technical guidance to States Housing and Home Finance Adminis­ proximately $351,845, associated with concerning highway traffic control prob­ trator: the financing of Transcontinental’s fa­ lems which may be created during a 1. The authority during a civil- cilities in Docket Nos. G-704 and G-1143. civil-defense emergency. defense emergency whenever needed to Transcontinental on August 24, 1954, 5. Provide data and assist the Statescarry out their responsibilities here­ filed a motion for oral argument on this in conducting analyses of potential tar­ under, to employ temporarily additional matter. get and support areas for the purpose of personnel without regard to the civil- It appearing that this proceeding in­ providing basic statistics and maps es­ service laws and to incur such obliga­ volves important issues, as reflected in sential to the completion of Federal, tions on behalf of the United States as the briefs heretofore filed by Transconti­ State, and local civil-defense operating may be required to meet the civil-defense nental, Interveners and Commission plans. requirements of an attack or of an an­ Staff Counsel, the Commission finds: It The Secretary of Labor. 1. Plan and ticipated attack. is appropriate in carrying out the pro­ develop a national program relating to 2. The authority to disseminate such visions of the Natural Gas Act* and good the utilization of the labor force, during civil-defense information as may be ap­ cause exists, to hold oral argument, as a civil-defense emergency, consistent proved from time to time by the Federal hereinafter provided and ordered. with the responsibilities of the Depart­ Civil Defense Administration. The Commission orders: Oral argu­ ment of Labor with respect to manpower General provisions. In carrying out ment be held before the Commission, mobilization. their responsibilities hereunder, the Sec­ commencing on October 19, 1954, at 2. Conduct research and provide a retary of Agriculture, the Secretary of 10:00 a. m„ e. s. t., in a hearing room of method of estimating survivors, by oc­ Commerce, the Secretary of Labor, the the Federal Power Commission, 441 G cupational and social characteristics/ Attorney General, and the Housing and Street NW., Washington, D. C., concern­ and for determining their availability Home Finance Administrator shall be ing the matters involved and the issues lo r employment during a civil-defense governed by the following : presented by this proceeding. emergency. 1. The Federal Civil Defense Admin­ Adopted: September 1, 1954. 3. Provide technical guidance to the istrator shall provide basic assumptions, States and direct Federal activities con­ criteria, and standards relating to the Issued: September 7,1954. cerned with coordination of the nation­ said responsibilities and shall review and By the Commission. wide system of employment service of­ coordinate the carrying out of such re­ [seal] L eon M. F uquay, fices for determining requirements of, sponsibilities. . Secretary. and recruiting, referring, and utilizing 2. Thé designated officials shall take workers to meet, civil-defense needs. into consideration assignments respect­ [F. R. Doc. 54-7134; Filed, Sept. 10, 1954; 4. Plan a national program, develop ing mobilization preparedness measures 8:49 a. m.] technical guidance for States, and direct made to them by the Office of Defense Federal activities concerned with the Mobilization. methods of compensation for authorized 3. Each of the designated officials, as GENERAL SERVICES ADMIN­ workers in a civil-defense emergency. the official having primary responsibility ISTRATION for the matters hereby delegated to him, 5. Plan a national program, develop shall undertake to coordinate directly P alm Oil H eld in National Stock Pit8 j technical guidance for States, and direct with other Federal agencies concerned. disposition Federal activities concerned with the 4. Each of the designated officials shall provision of compensation payments for be responsible, after consultation with Pursuant to the provisions of section the injury or death of authorized work­ the Federal Civil Defense Administra­ 3 (e) of the Strategic and Critical Ma- Saturday, September 11, 1954 FEDERAL REGISTER 5923 terials Stock Piling Act, 60 Stat. 597, 50 INTERSTATE COMMERCE Any interested person desiring the U. S. C. 98b (e), notice is hereby given Commission to hold a hearing upon such of a proposed disposition of approxi­ COMMISSION application shall request the Commission mately 11,000,000 pounds of palm oil now [4th Sec. Application 29651] in writing so to do within 15 days from held in the National Stock Pile. the date of this notice. As provided by This quantity of palm oil is no longer F ibreboard B oxes P rom Middletown, the general rules of practice of the Com­ needed in the National Stock Pile be­ Ohio, to Alabama, L ouisiana, T ennes­ mission, Rule 73, persons other than ap­ cause of a revised determination by the see and Mississippi . plicants should fairly disclose their inter­ Office of Defense Mobilization that palm APPLICATION FOR RELIEF est, and the position they intend to take oil is obsolescent for use in time of war at the hearing with respect to the appli­ S eptem ber 8,1954. because of the development of new, non- cation. Otherwise the Commission, in strategic materials. The Commission is in receipt of the its discretion, may proceed to investigate Since the quantity of palm oil to be above-entitled and numbered applica­ and determine the matters involved in disposed of, pursuant to this notice, rep­ tion for relief from the long-and-short- such application without further or for­ resents only a small portion of the nor­ haul provision of section 4 (1) of the mal hearing. If because of an emergency mal total annual consumption of the Interstate Commerce Act. a grant of temporary relief is found to country, it is anticipated that the pro­ Piled by: H. R. Hinsch, Agent, for be necessary before the expiration of the posed disposition will have no disruptive carriers parties to his tariff I. C. C. No. 15-day period, a hearing, upon a request effect on the market for palm oil. It is 4367, pursuant to fourth-section order filed within that period, may be held further anticipated that the total quan­ No. 17220. subsequently. Commodities involved: Boxes, fibre- tity of oil to be disposed of will be sold, By the Commission. at current market prices at the time of board, carloads. each sale, to the major consumer of this Prom : Middletown, Ohio. [seal] G eorge W. L aird, commodity, the steel industry, for whose To: Points in Alabama, Louisiana, Secretary. Tennessee, and Mississippi. use this commodity was originally stock­ [F. R. Doc. 54-7127; Filed, Sept. 10, 1954; piled. Schedules filed containing proposed 8:48 a. m.] This material will be available for dis­ rates : Rail competition, and circuitous routes. position on and after March 11, 1955, Any Interested person desiring the and disposal, as outlined above, is pro­ Commission to hold a hearing upon such [4th Sec. Application 29653] posed in order to avoid an expensive and application shall request the Commis­ costly waste of a material which is ob­ sion in writing so to do within 15 days S crap I ron F rom Southern T erritory: solescent and subject to deterioration from the date of this notice. As pro­ to Zanesville, Ohio and in order to avoid continuing storage vided by the general rules of practice of application for r elief and rotation costs. the Commission, Rule 73, persons other than applicants should fairly disclose S eptember 8,1954. Dated: September 8, 1954. their interest, and the position they in­ The Commission is in receipt of the E dmund P . Mansure, tend to take at the hearing with respect above-entitled and numbered applica­ Administrator. to the application, Otherwise the Com­ tion for relief from the long-and-short- mission, in its discretion, may proceed haul provision of section 4 (1) of the [F. R. Doc. 54-7184; Filed, Sept. 10, 1954; 8:56 a. m.] to investigate and determine the matters Interstate Commerce Act. involved in such application without Filed by: R. E. Boyle, Jr., Agent, for further or formal hearing. If because carriers parties to schedule listed below. of an emergency a grant of temporary Commodities involved: Scrap iron and relief is found to be necessary before steel, carloads. Secretary of Commerce the expiration of the 15-day period, a From: Points in southern territory. hearing, upon a request filed within that To: Zanesville, Ohio. DELEGATION OF AUTHORITY WITH RESPECT period, may be held subsequently. Grounds for relief: Rail competition, TO PROCUREMENT CONTRACTS FOR EXPERI­ By the Commission. circuity, rates constructed on the basis MENTAL, DEVELOPMENTAL, OR RESEARCH of the short line distance formula, and PURPOSES BY NATIONAL BUREAU OF STAND­ [seal] G eorge W. L aird, additional destination. ARDS FOR EXECUTIVE AGENCIES; REVOCA­ Secretary. Schedules filed containing proposed TION - [F. R. Doc. 54-7126; Filed, Sept. 10, 1954; rates: C. A. Spaninger, Agent, I. C. C. 8:48 a. m.] No. 1329, supp. 50. 1. Pursuant to the authority vested in Any interested person desiring the the Administrator of General Services Commission to hold a hearing upon such by provisions of the Federal Property application shall request the Commis­ and Administrative Services Act of 1949, [4th Sec. Application 29652] sion in writing so to do within 15 days from the date of this notice. As pro­ as amended (63 Stat. 377), the authority F ibreboard B oxes F rom B attle Creek delegated to the Secretary of Commerce, and K alamazoo, M ich ., and R ittman, vided by the general rules of practice of the Commission, Rule 73, persons other dated November 17, 1950 (15 P. R. 8057), Ohio, to M em ph is, T enn. for use by the National Bureau of Stand­ than applicants should fairly disclose ards, to make purchases and contracts APPLICATION FOR RELIEF their interest, and the position they in­ tend to take at the hearing with respect S eptem ber 8,1954. for supplies and services, for the use of to the application. Otherwise the Com­ executive agencies, pursuant to Title III The Commission is in receipt of the mission, in its discretion, may proceed of the aforesaid act, whenever the Secre­ above-entitled and numbered application to investigate and determine the matters tary of Commerce determines that the for relief from the long-and-short-haul involved in such application without fur­ purchase or contract is one coming provision of section 4 (1) of the Inter­ ther or formal hearing. If because of within the provisions of subsection 302 state Commerce Act. an emergency a grant of temporary re­ (c) (10) of that act, is hereby revoked. Filed by: H. R. Hinsch, Agent, for lief is found to be necessary before the 2. The revocation of this delegation carriers parties to his tariff I. C. C. No. 4367, pursuant to fourth-section order expiration of the 15-day period, a hear­ of authority shall be effective Septem­ No. 17220. ing, upon a request filed within that ber 10, 1954. Commodities involved: Boxes, fibre- period, may be held subsequently. Dated: September 8, 1954. board, carloads. By the Commission. From: Battle Creek and Kalamazoo, E dmund P . Mansure, Mich., and Rittman, Ohio. [seal] G eorge W. L aird, Administrator. To: Memphis, Tenn. Secretary. [F. R. Doc. 54-7185; Filed, Sept. 10, 1954; Grounds for relief: Rail competition, [F. R. Doc. 54-7128; Filed, Sept. 10, 1954; 8:56 a. m.l and circuitous routes. 8:48 a. m.] 5924 NOTICES

[4th Sec. Application 29654] application shall request the Commis­ [4th Sec. Application 29657] W o o d p u l p P r o m K r a n n e r t , G a., t o sion in writing so to do within 15 days E x p a n s io n T a n k s i n O f f ic ia l T e r r it o r y O f f ic ia l and I l l in o is T e r r i t o r i e s from the date of this notice. As pro­ vided by the general rules of practice of APPLICATION FOR RELIEF APPLICATION FOR RELIEF the Commission, Rule 73, persons other S e p t e m b e r 8,1954. than applicants should fairly disclose S e p t e m b e r 8 . 1 9 54. The Commission is in receipt of the The Commission is in receipt of the their interest, and the position they in­ tend to take at the hearing with respect above-entitled and numbered applica­ above-entitled and numbered application tion for relief from the long-and-short- for relief from the long-and-short-haul to the application. Otherwise the Com­ mission, in its discretion, may proceed to haul provision of section 4 (1) of the provision of section 4 (1) of the Inter­ Interstate Commerce Act. state Commerce Act. investigate and determine the matters involved in such application without fur­ Filed by : C. W. Boin, and C. R. Gold- Filed by: R. E. Boyle, Jr., Agent, for rich, Agents, for carriers parties to carriers parties to schedule listed below. ther or formal hearing. If because of an emergency a grant of temporary relief schedules indicated below. Commodities involved: Woodpulp, car­ Commodities involved: Tanks, expan­ loads. is found to be necessary before the expiration of the 15-day period, a hear­ sion, steel, 18 gauge or thicker, carloads. From: Krannert, Ga. Between: Points in official territory To: Points in official and Illinois terri­ ing, upon a request filed within that period, may be held subsequently. including extended zone “C” in Wiscon­ tories. sin. Grounds for relief: Rail competition, By the Commission. Grounds for relief: Rail competition, circuity, and additional routes., circuity, competition with motor car­ Schedules filed containing proposed [ s e a l ] G e o r g e W . L a ir d , Secretary. riers, rates constructed on the basis of rates: C. A. Spaninger, Agent, I. C. C. No. the short line distance formula, and ad­ 1260, supp. 72. [F. R. Doc. 54-7130; Filed, Sept. 10, 1954; Any interested person desiring the 8:49 a. m.] ditional commodity. Commission to hold a hearing upon such Schedules filed containing proposed application shall request the Commission rates: C. W. Boin, Agent, I. C. C. No. in writing so to do within 15 days from A-848, supp. 332 and other schedules the date of this notice. As provided by [4th Sec. Application 29656] listed on page 2 of the application. the general rules of practice of the Com­ Any interested person desiring the mission, Rule 73, persons other than C it r u s F r u it s F r o m F lo r id a t o P o in t s Commission to hold a hearing upon such i n S outhwestern and W. T . L. T e r r i­ applicants should fairly disclose their application shall request the Commis­ interest, and the position they intend to t o r ie s sion in writing so to do within 15 days take at the hearing with respect to the APPLICATION FOR RELIEF from the date of this notice. As pro­ application. Otherwise the Commission, vided by the general rules of practice of S e p t e m b e r 8, 1954. in its discretion, may proceed to investi­ the Commission, Rule 73, persons other gate and determine the matters involved The Commission is in receipt of the than applicants should fairly disclose in such application without further or above-entitled and numbered applica­ their interest, and the position they in­ formal hearing. If because of an emer­ tion for relief from the long-and-short- tend to take at the hearing with respect gency a grant of temporary relief is haul provision of section 4 (1) of the to the application. Otherwise the Com­ Interstate Commerce Act. mission, in its discretion, may proceed found to be necessary before the expira­ to investigate and determine the matters tion of the 15-day period, a hearing, upon Filed by: R. E. Boyle, Jr., Agent, for carriers parties to schedule listed below. involved in such application without fur­ a request filed within that period, may ther or formal hearing. If because of be held subsequently. Commodities involved: Citrus fruit, carloads. an emergency a grant of temporary re­ By the Commission. From : Points in Florida. lief is found to be necessary before the To: Points in Arkansas, Louisiana, expiration of the 15-day period, a hear­ [ s e a l ] G e o r g e W. L a ir d , ing, upon a request filed within that Secretary. Missouri, Oklahoma, and Texas, Min­ nesota. period, may be held subsequently. [F. R. Doc. 54-7129; Filed, Sept. 10, 1954; Grounds for relief: Rail competition, By the Commission. 8:48 a. m.] circuity, and competition with motor [ s e a l ] G e o r g e W. L a ird, carriers. Secretary. Schedules filed containing proposed [4th Sec. Application 29655] rates: C. A. Spaninger, Agent, L C. C. [F. R. Doc. 54-7132; Filed, Sept. 10, 1954; No. 1211, supp. 50. 8:49 a. m.] G r a in F r o m M is s o u r i R iv e r C i t i e s t o Any interested person desiring the C h ica g o , I I I . Commission to hold a hearing upon such APPLICATION FOR RELIEF application shall request the Commis­ [4th Sec. Application 29658] sion in writing so to do within 15 days M e r c h a n d is e i n M i x e d C arloads F rom S e p t e m b e r 8, 1954. from the date of this notice. As pro­ N e w O r l e a n s , L a., t o A laba m a , F lorida, The Commission is in receipt of the vided by the general rules of practice and G e o r g ia above-entitled and numbered applica­ of the Commission, Rule 73, persons tion for relief from the long-and-short- other than applicants should fairly dis­ APPLICATION FOR RELIEF haul provision of section 4 (1) of the close their interest, and the position S e p t e m b e r 8 ,1 9 5 4 . Interstate Commerce Act. they intend to take at the hearing with The Commission is in receipt of the Filed by: W. J. Prueter, Agent, for the respect to the application. Otherwise above-entitled and numbered application Chicago, Rock Island and Pacific Rail­ the Commission, in its discretion, may for relief from the long-and-short-haul road Company. proceed to investigate and determine the provision of section 4 (1) of the Inter­ Comodities involved: Grain, grain matters involved in such application state Commerce Act. products and related articles, carloads. without further or formal hearing. If Filed by: R. E. Boyle, Jr., Agent, for From: Albright, Omaha, South Omaha, because of an emergency a grant of carriers parties to schedule listed below. Nebr., and Council Bluffs, Iowa, Atchi­ temporary relief is found to be necessary Commodities involved: Merchandise, son, Kans., St. Joseph, Mo., and Kansas before the expiration of the 15-day pe­ in mixed carloads. City, Mo.-Kans. riod, a hearing, upon a request filed From: New Orleans, La. To: Chicago, HI. within that period, may be held To: Specified points in Alabama, Flori­ Grounds for relief: Rail competition, subsequently. da, and Georgia. circuity, and additional routes. By the Commission. Grounds for relief: Rail competition, Schedules filed containing proposed circuity, and competition with motor rates: W. J . Prueter, Agent, I. C. C. No. [ s e a l ] G e o r g e W . L a ir d , carriers. A-3866, supp. 66. Secretary. Schedules filed containing proposed Any interested person desiring the [F. R. Doc. 54-7131; Filed, Sept. 10, 1954; rates: C. A. Spaninger, Agent, I. C. C. Commission to hold a hearing upon such 8:49 a . m.] No. 1305, supp. 49. Saturday, September 11, 1954 FEDERAL REGISTER 5925

Any interested person desiring the tion for approval of an agreement under By the Commission, Division 2. Commission to hold a hearing upon such the provisions of section 5a of the Inter­ application shall request the Commission state Commerce Act. [ seal] G eorge W . L aird, in writing so to do within 15 days from Piled September 1, 1954, by: Shea- Secretary. the date of this notice. As provided by Matson Trucking Company, 2053 North [F. R. Doc. 54-7145; Filed, Sept. 10, 1954; the general rules of practice of the Com­ 30th Street, Milwaukee 8, Wis. 8:51 a. m.] mission, Rule 73, persons other than ap­ Agreement involved: Agreement be­ plicants should fairly disclose their in­ tween and among common carriers by terest, and the position they intend to motor vehicle, member of the Heavy and SMALL BUSINESS ADMINISTRA­ take at the hearing with respect to the Specialized Carriers Tariff Bureau, relat­ TION application. Otherwise the Commission, ing to rates, rules and regulations for the in its discretion, may proceed to investi­ transportation in interstate or foreign [Declaration of Disaster Area 31, Amdt. 1] gate and determine the matters involved commerce, of objects requiring the use Connecticut in such application without further or of special equipment, special handling, formal hearing. If because of an emer­ rigging, and other specialized services, AMENDMENT TO DECLARATION OF DISASTER gency a grant of temporary relief is from, to and between points in the AREA found to be necessary before the expira­ United States and between points in the 1. Declaration of Disaster Area 31 for tion of the 15-day period, a hearing, upon United States and Canada and Mexico, the State of Connecticut, dated Septem­ a request filed within that period, may and procedures for the joint initiation, ber 1, 1954, is hereby amended by in­ be held subsequently. consideration, and establishment thereof. cluding “Fairfield County” as one of “the By the Commission. The complete application may be in­ disaster areas” therein designated. spected at the office of the Commission 2. Applications for disaster loans [seal] G eorge W . L aird, in Washington, D. C. under said declaration, as hereby Secretary. Any interested person desiring the amended with respect to the above [F. R. Doc. 54-7133; Filed, Sept. 10, 1954; Commission to hold a hearing upon such County, may be filed with either of the 8:49 a. m.] application shall request the Commission following Offices: in writing so to do within 20 days from (a) Small Business Administration the date of this notice. As provided by Regional Office, 1799 Broadway, 15th the general rules of practice of the Com­ Floor, New York 19, New York. [Sec. 5a Application 54] mission, persons other than applicants (b) A special field office located at should fairly disclose their interest, and Mathews Mansion, West End Avenue, Heavy and S pecialized Carriers T ariff the position they intend to take at the Norwalk, Connecticut. B ureau hearing with respect to the application. Dated: September 8, 1954. application for approval of agreement Otherwise the Commission, in its discre­ tion, may proceed to investigate and de­ W endell B . B arnes, S eptember 8,1954. termine the matters involved in such Administrator. The Commission is in receipt of the application without further or formal [F. R. Doc. 54-7138; Filed. Sept. 10, 1954; above-entitled and numbered applica­ hearing. 8:50 a. m.]