^ O N A M * .

^ 1 I ITTCOA'll FEDERAL REGISTE 7 5 * ' 1934 NUMBER 154 VOLUME 8 ^ t/A f iT E O ^

Washington, Thursday, August 5, 1943

Regulations the percentage that the simple average CONTENTS of the yields of sugar beets^in tons per acre planted on the farm in such year REGULATIONS AND NOTICES TITLE 7—AGRICULTURE or years is of the simple average of the Alien Property Custodian: . PaSe county average yields of sugar beets for Chapter VIII—War Food Administration Vesting orders: such year or years, except that the Abandoned patent applica­ normal yield for such farm shall not be P art 802—Sugar Determinations tions, nationals of: less than 80 percent nor more than 120 Enemy countries______10911 NORMAL YIELDS OF COMMERCIALLY RECOVER­ percent of the county normal yield; and Enemy-occupied countries- 10911 ABLE SUGAR PER ACRE FOR SUGAR BEETS (in) For a farm on which sugar beets Avenarius, R., & Co------10913 (REVISED) were not planted in any of the next Bituminous Coal Division: Pursuant to the provisions of section preceding seven years, 90’ percent of the Minimum price schedules 303 of the Sugar Act of 1937, as.amended, county normal yield of sugar beets. amended: and Executive Order No. 9322, issued (3) The “county average yield” of , District 4______10885 March 26,1943, as amended by Executive sugar beets shall be: District 7 (2 documents)__ 10886, Order No. 9334, issued April 19, 1943, the (i) For each of the years 1936-1941, in­ 10888 following determination is hereby issued: clusive, the yield established, or which District 9_.______10889 could have been established, under the District 14______,------10891 § 802.15e Determination of normal 1942 sugar beet program; and Civil Aeronautics Board: yields of commercially recoverable sugar United Air Lines Transport per acre for sugar beets, (a) The nor­ (ii) For the year 1942 and any subse­ Corp., oral argument_____ 10910 mal yield of commercially recoverable quent year, for a county with ten or I nternal Revenue Bureau: sugar per acre for any farm on which more farms with respect to which ap­ Gift tax under Internal Rev­ sugar beets are planted shall be the plications for sugar payments were ap­ enue Code, regulations re­ amount of sugar obtained by multiplying proved, the weighted average yield in vised—______10858 the normal yield of sugar beets in tons tons per planted acre on such farms in Interstate Commerce Commission: per acre for the farm by the amount of such year, and for a county with less Daingerfield, Tex., weighing of sugar, raw value, determined to be com­ than ten farms with respect to which sand or gravel for use of mercially recoverable under section 302 applications for sugar payments were Austin Bridge Co------— 10910 (a) of the Sugar Act of 1937, as amended, approved, the yield per acre established Office of Defense T ransportation: by the State Agricultural Conservation Deliveries, wholesale and retail, from a ton of sugar beets of normal per­ further curtailment (ODT centage of sugar content for the farm. Committee on the basis of the yields per acre for such year in the county and in 17, Am. 5)______10910 (b) For the purposes of this deter­ Office of Price Administration: mination: . adjacent counties with similar produc­ Adjustment orders filed, list.— 10914 (1) “Planted” sugar beets shall be tion conditions. Adjustments, exceptions, etc.: deemed to include only sugar beets (4) The “county normal yield” of Bond, Lawrence E------10907 planted for harvest for the extraction of sugar beets shall be: Curtice Bros. Co------10908 sugar. (i) For a county for which county Parkinson, Warren Lee------10907 (2) The “normal yield” of sugar beets average yields are established for Wells Mfg. Co______10907 shall be: three or more of the next preceding Aluminum scrap and secondary (i) For a farm on which sugar beets seven years on the basis of ten or more ingot (MPR 2, Am. 2)____ 10899 were planted in three or more of the farms, the simple average of all the av­ Animal product feedingstuffs next preceding seven years, the simple erage yields in tons per acre so estab­ (RMPR 74, Am. D — ____ 10905 average of the annual average yields of lished for such county for such years; Asphalt, container costs (MPR sugar beets in tons per acre planted on and 188, Am. 10 to Order A-l) - 10915 the farm for all of such years in which (ii) For a county for which county Authority delegated to territo­ average yields are established for less rial director: sugar beets were planted; Puerto Rico______10917 (ii) For a farm on which sugar beets than three of the next preceding seven years on the basis of ten or more farms, Virgin Islands------10917 were planted in only one or two of the Cotton goods, fine (MPR 11, next preceding seven years, the number the yield established by the State Agri­ cultural Conservation Committee on the Am. 8)______10900 of tons obtained by multiplying the (Continued on next page) county normal yield of sugar beets by (Continued on next page) 10855 10856 FEDERAL REGISTER, Thursday, A ugust 5, 1943

CONTENTS—Continued (5) The “normal percentage of sugar content” of sugar beets for a farm from Office of P rice Administration— which sugar beets were contracted to Continued. be marketed under that type of agree­ FEDERALSfcREGISTER Regional, State, and district of- rÜHuiQc- ment commonly known'as an “individual flee orders—Continued. Page test contract” shall be: Rubber footwear, victory line (i) In case sugar beets were so mar­ waterproof (MPR 229, Am. keted in three or more of the next pre­ Published daily, except Sundays, Mondays, 7 )------x------10900 ceding seven years, the simple average and days following legal holidays, by the Solid fuels: of the annual average percentages of Division of the Federal Register.-The National Archives, pursuant to the authority contained Clinton, Ind______10918 sugar content, at the time of delivery in the Federal Register Act, approved July 26, Mt. Vernon, Ind______10917 to a processor, of the sugar beets mar­ 1935 (49 Stat 500, as amended; 44 U.S.C., Vanderburg County, Ind___ 10918 keted in all of such years in which sugar ch. 8B),.under regulations prescribed by the Sausages, frankfurters, etc., beets were so marketed; Administrative Committee, approved by the wholesale (MPR 389, Am. 5 (ii) In case sugar beets were so mar­ President. Distribution is made only by the and 6) (2 documents)___ 10906, keted in only one or two of the next pre­ Superintendent of Documents. Government , Printing Office, Washington,'D C. 10907 ceding seven years, the percentage of The regulatory material appearing herein is P etroleum Administration for sugar content obtained by multiplying keyed to the 'Code of Federal Regulations, War: the county normal percentage of sugar which is published, under 50 titles, pursuant Asphalt marketing, certain test content of sugar beets by the percentage to section 11 of the Federal Register Act, as amended June 19, 1937. requirements (Dir. 66, Am. that the simple average of the average The F ederal R egister will be furnished by 1) — ------; ------10908 percentages of sugar content, at the mail to subscribers, free of postage, for $1.50 Productive operations, elimina­ time of delivery to a processor, of the per month or $15.00 per year, payable in ad­ tion of certain Louisiana sugar beets marketed in such year or vance. The charge for individual copies fields (PAO 11, Am. D — _ 10908 years is of the simple average of the (minimum 15tf) varies in proportion to the Reclamation Bureau: size of the issue. Remit check or money county average percehtages of sugar con­ mac*e payable to the Superintendent Green Mountain Reservoir, tent of sugar beets for such year or OT Documents, directly to the Government Colo., boat and wharf privi­ years; and Printing Office. Washington. D. C. leges------10908 (iii) In case sugar beets were not so There are no restrictions on the republica- War F ood Administration: tion of material appearing in the F ederal marketed, in any of the next preceding Register. Meat quotas for August: (FDO 27-2, Am. 3) ______10857 seven years, the county normal per­ (FDO 61-2)------10857 centage of sugar content of sugar beets. Sugar beets, normal yields of (6) The “county average percentage CONTENTS—Continued commercially recoverable of sugar content” of sugar beets shall be: (i) For each of the years 1936-41, in­ Office of P rice Administration— sugar per acre______10855 Continued. Page War Production Board: clusive, the percentage established, or Cottonseed oil meal, cake, hulls, Aircraft, civilian (P4-7)______10898 which could have been established, under etc. (MPR 444)______10903 Controlled materials plan (CMP the 1942 sugar beet program; and Malt beverages, domestic (MPR Reg. 1, Am. 2)______10898 (ii) For the year 1942 and any sub­ 259, Am. 2) ______. 10902 Dishwashers, commercial (L- sequent year, for a county with ten or Petroleum and products (RPS 248)------10896 more farms with respect to which appli­ 88, Am. 118)______10901 Paper and paperboard (M-241)_ 10898 cations for sugar payments were ap­ Plastic pipe and tubing (MPR Petroleum solvents, aromatic , proved, the weighted average percentage 188, Am. 18)___ 10807 (M-150)------10894 of sugar content, at the time of delivery Modification of prices (MPR Reagent chemicals (P-135-a)__ 10896 to a processor, of all sugar beets mar­ 188, Am. 8 to Order A-l)_ 10914 Suspension orders: keted under individual test contracts in Puerto Rico, specific prices for Beck Engineering Combustion such year from farms in the county, certain canned goods Kompany------10894 and for a county with less than ten (RMPR 183, Am. 1)______10906 Simon, B. Hardware Co_____ 10894 farms with respect to which applica­ Regional, State, and district of­ fice orders: Tool steel (M-21-h)______10892 tions for sugar payments were approved, Ice: Vanadium, use in melting the percentage established by the State Greensburg, Ind. (2 docu- (M-21-h, Dir. 1)______10893 Agricultural Conservation Committee on ments)------10919 War Shipping Administration: the basis of the percentage of sugar Indianapolis, Ind______10918 Ship warrant rules; rate ceil­ content, at the time of delivery to a Milk: ings for vessels under 1,000 processor, of the sugar beets so marketed -Indiana------______10920 tons------10910 in such year from farms in the county Ohio, Cuyahoga, Wayne, and in adjacent counties. and Summit counties— 10917 (7) The “county normal percentage Milk haulers, Indiana, Ken­ basis of the yields per acre for the next of sugar content” of sugar beets shall be: tucky, Michigan, Ohio, preceding seven years in the county and (l) For a county for which county and West Virginia (2 doc­ in adjacent counties with similar produc­ uments)------10920 average -percentages are established for tion conditions. * three or more of the next preceding

/ FEDERAL REGISTER, Thursday, A ugust 5, 1943 10857 seven years on the basis of ten or more This determination supersedes, with Issued this 4th day of August 1943. farms, the simple average of all the av­ respect to the 1943 and subsequent crops, Roy F. H endrickson, erage percentages so established for the the “Determination of Normal Yields of Director of Food Distribution. county for such years; and Commercially Recoverable Sugar Per [F. R. Doc. 43-12649; Filed, August 4, 1943; (ii) For a county for which county Acre for Sugar Beets, Pursuant to the 11:34 a. m.] average percentages are established for Sugar Act of 1937, as Amended,” issued less than three of the next preceding July 27, 1942. ' seven years on the basis of ten or more (Sec. 303, 50 Stat. 911; 7 U.S.C. 1940 ed. [FDO 61-2] farms, the percentage established by the 1133; E.O. 9322, as amended by E.O. State Agricultural Conservation Com­ 9334) Part 1410—Livestock and Meats mittee on the basis of the percentage of Issued this 3d day of August 1943. MEAT QUOTAS sugar content, at the time of delivery to a processor, of the sugar beets mar­ Marvin J ones, Pursuant to the provisions of Food keted under individual test contracts in War Food Administrator. Distribution Order No. 61 (8 F.R. 9108) the next preceding seven years from [F. R. Doc. 43-12647; Filed, August 4, 1943; and to effectuate the purposes thereof, farms in the county and in adjacent 11:34 a. m.] It is hereby ordered, As follows: counties. § 1410.16 Increase in quotas for (8) The “normal percentage of sugar August, (a) Any commercial slaught­ content” of sugar beets for a farm from erer may deliver, during the month of Chapter XI—War Food Administration August 1943, in addition to his quota and which sugar beets were contracted to be in addition to the percentage of such marketed under any type of agreement [FDO 27-2, Arndt. 3] quota allowed to be delivered in August other than that commonly known as an P art 1410—Livestock and Meats under (d) of Director Food Distribution “individual test contract” shall be the Order No. 61-1, as amended (8 F.R. normal percentage of sugar content of MEAT QUOTAS s 9112, 9319), an amount of pork equiva­ sugar beets for the district (an area in Food Distribution Order No. 27-2, as lent to 2 percent of such commercial which a common marketing agreement amended (8 F.R. 7185, 9041, 9641), slaughterer’s pork quota base for Quota was in use). § 1410.10, issued by the Director of Food Period 4. (9) The “normal percentage of sugar Distribution, is amended as follows: (b) Any commercial slaughterer lo­ content of sugar beets for the district” 1. By deleting the figure “85” in para­ cated in the States of California, Oregon, and Washington may deliver, during the shall be: graph (b) and substituting in lieu thereof the figure “90”. month of August 1943, in addition to his (i) For a district in which a beet sugar quota and in addition to the percentage- factory was operated in three or more of 2. By deleting the word “July” wher­ ever it appears in the proviso at the end of such quota allowed to be delivered in the next preceding seven years, the sim­ August under (d) of Director Food Dis­ ple average of the annual average per­ of paragraph (c) and substituting in lieu thereof the word “August”. tribution Order No. 61—1, as amended centages 6f sugar content, at the time With respect to violations of said Food (8 F.R. 9112, 9319), an amount of lamb of processing, of all of the sugar beets Distribution Order No. 27-2, as amended, and mutton equivalent to 7 percent of processed in the district in all of such rights accrued, or liabilities incurred such commercial slaughterer’s lamb and years in which sugar beets were proc­ prior to the effective date of this amend­ mutton quota base for Quota Period 4. essed; and ment, said Food Distribution Order No. (c) This order shall become effective (ii) For a district in which a beet sugar 27-2, as amended, shaU be deemed to at 12:01 a. m., e. w. t., August 1, 1943. factory was operated in less than three be in full force and effect for the purpose (E.O. 9280, 7 F.R. 10179; E.O. 9322, 8 F.R. of the next preceding seven years, the of sustaining any proper suit, action, or 3897; E.O. 9334, 8 F.R. 5423; F.D.O. 61, percentage of sugar content of sugar other proceeding with respect to any 8 F.R. 9108) beets established by the Agricultural Ad­ such violation, right, or liability. Issued this 4th day of August 1943. justment Agency on the basis of the aver­ This order shall become effective at 12:01 a. m., e. w. t., August 1, 1943. R oy F. "Hendrickson, age percehtage of sugar content, at the Director of Food Distribution. time of processing, ^>f sugar beets pro­ (E.O. 9280, 7 P it. 10179; E.O. 9322, 8 F.R. 3807; E.O. 9334, 8 F.R. 5423; PD.O. 27, [F. R. Doc. 43-12648; Filed, August 4, 1943; duced under similar conditions in the 11:34 a. m.] next preceding seven years. 8 F.R. 2785, 4227, 5700, 7739, 8795)' 10858 FEDERAL REGISTER, Thursday, A ugust 5, 1943

TITLE 26—INTERNAL REVENUE See. (b) The tax shall apply whether the trans­ 86.56 Penalties. fer -is in trust or otherwise, whether the gift Chapter I—Bureau of Internal Revenue 86.57 Compromises. is direct or indirect, and whether the prop­ Snbchapter B—Estate and Gift Taxes 86.58 Claims in cases of transferred assets. erty is real or personal, tangible or intan­ 86.59 Notice of fiduciary relationship. gible; but, in the case of jt. nonresident not P art 86—Gift T ax Under Chapter 4 of 86.60 Authority for abatement, credit, or a citizen of the United States, shall apply I nternal R evenue Code, as A mended refund. to a transfer only if the property is situated 86.61 Credit and refund adjustments. within the United States. Regulations 108, relating to the 86.62 Claims by collectors. Sec. 452. P owers of appointment. [Reve­ Gift Tax under Chapter 4 of the Internal 86.63 Claims for credit or refund by donors. nue Act of 1942, Title IV, Part II, Enacted Revenue Code, as amended. 86.64 Claims for refund in case of judgment October 21, 1942.1 Sec. • obtained against collector. (a) General rule. Section 1000 (relating 86.65 Claims for refund in case of judgment to imposition of gift tax) is amended by 86.0 Scope of regulations. obtained against the United States. inserting at the end thereof the following 86.1 Imposition of tax. 86.66 Limitations upon the crediting and new subsection* 86.2 Transfers reached. refunding of taxes paid. . (c) Powers of appointment. An exercise 86.3 Cessation of donor’s dominion and 86.67 Crediting of accounts of collectors in or release of a power of appointment shall be control. cases of assessments against several deemed a transfer of property by the indi­ 86.4 Residence. persons covering same liability. vidual possessing such power. For the pur­ 86.5 Tax rate schedules. 86.68 Erroneous refunds and credits. poses of this subsection the term “power of 86.6 Use of table for computing gift tax. 86.69 Closing agreements relating to tax li­ appointment” means any power to appoint 86.7 Computation of tax. ability in respect to internal revenue exercisable by an individual either alone or 86.8 Transfers for a consideration in money taxes. in conjunction with any person, except— or money’s worth. 86.70 Personal liability of fiduciaries. (1) A power to appoint within a class which 86.9 Net gifts. 86.71 Securing evidence; taking testimony. does not include any others than the spouse 86.10 Total amount of gifts. 86.72 Power to compel compliance. of such individual, spouse of the creator of 86.11 Future interests in property. 86.73 Laws made applicable. the power, descendants of such individual or 86.12 Specific exemption. 86.74 Definitions. his spouse, descendants (other than such in­ 86.13 Charitable, etc., gifts. 86.75 Promulgation of regulations. dividual) of the creator of the power or his 86.14 Religious, charitable, scientific, liter­ Authority : §§ 86.0 to 86.75, inclusive, is­ spouse, spouses of such descendants, donees- ary, and educational organizations. sued under secs. 1029 and 3791 of the In­ described in section 1004 (a) (2), and donees 86.15 Proof required. ternal Revenue Code (53 Stat. 157, 467; 26 described in section 1004 (b). As used in this 86.16 Charitable, etc., gifts with power to U.S.C. 1029, 3791) paragraph, the term “descendant” includes divert. adopted and illegitimate descendants, and 86.17 Gifts made in property. § 86.0 Scope of regulations. These the term “spouse” includes former spouse; 86.18 Situs of property. regulations deal with the gift tax im­ and 86.19 Valuation of property. posed by chapter 4 of the Internal (2) A power to appoint within a restricted 86.20 Persons required to file return. class if such individual did not receive any 86.21 Donees and trustees required to file Revenue Code and apply to transfers of property by gift during the calendar year beneficial interest, vested or contingent, in notice of gifts. the property from the creator of the power 86.22 Time and place of filing return. 1940 and thereafter. They do not affect or thereafter acquire any such interest, and 86.23 Form of return. gift tax regulations (including Treasury if the power is not exercisable to any extent 86.24 Description of property listed on re­ decisions) heretofore issued in so far as for the benefit of such individual, his estate,, turn. they relate to taxes imposed on gifts his creditors, or the creditors of his estate. 86.25 Aids to determination and collection of tax. made prior to January 1,1940. If a power to appoint is exercised-by creating 86.26 Supplemental data. Each section, subsection, or paragraph another power to appoint, such first power 86.27 Recognition of attorneys and other of the Internal Revenue Code appearing shall not be considered excepted under para­ persons representing taxpayers. in the regulations is followed by the graph (1) or (2) from the definition of power 86.28 Date of payment. section or sections of the prescribed reg­ of appointment to the extent of the value of 86.29 Extension of time for payment of tax ulations relating thereto and shall be the property subject to such second power to shown on return. considered as a part thereof. Sections appoint. For the purposes of the preceding 86.30 Voluntary advance payment. of the Code set forth are readily distin­ sentence the value of the property subject to 86.31 When fractional part of cent may be such second power to appoint shall be its disregarded. guishable from the prescribed regulations value unreduced by any precedent or subse­ 86.32 Receipts for taxes. sections since the latter appear in larger quent interest not subject to such power to 86.33 Payment by check. type and bear a number commencing appoint. 86.34 Donor liable for tax. with 86 and a decimal point. The num­ (b) Powers with respect to which amend­ 86.35 Lien for tax. ber “86” is used in numbering the sec­ ments not applicable. (1) The amendments 86.36 Release of lien. tions of the regulations for the reason made by this section shall not apply with 86.37 .Examination of return and determi­ that the regulations constitute Part 86 respect to a power to appoint, created on or nation of tax by the Commissioner. 86.38 Deficiency defined. of Title 26 of the Code of Federal Regula­ before the date of enactment of this Act, 86.39 Assessment of deficiency. tions. Identifying portions of the sec­ which is other than a power exercisable in tion numbers (following 86.) begin with favor of the donee of the power, his estate, 86.40 Waiver by donor of restrictions on his creditors, or the creditors of his estate, assessment. “0” and follow in sequence. Except as unless such power is exercised after the date 86.41 Collection of deficiency. otherwise indicated, the statutory refer­ of enactment of tfiis Act. 86.42 Extension of time for payment of de­ ences are to the Internal Revenue Code. ficiencies. (2) The amendments made by this section 86.43 Jeopardy assessments. To the extent that Regulations 79 shall not become applicable with respect to 86.44 Claims in abatement. (1936 Edition), as amended by Treasury a power to appoint created on or before thè 86.45 Bankruptcy and receivership pro­ decisions, have been made applicable to date of enactment of this Act, which is ex­ ceedings. gift taxes imposed by the Internal Reve­ ercisable in favor of the donee of the power, 86.46 Immediate assessments in bankruptcy nue Code, they are hereby superseded. his estate, his creditors, or the creditors of and receivership cases. his estate, if at such date the donee of such Sec. 1000. I m position of tax. [As orig­ power is under a legal disability to release 86.47 Period of limitation upon assessment inally enacted.] of tax. such power, until six months after the ter­ 86.48 Period of limitation upon collection (a) For the calendar year 1940 and each mination of such legal disability. For the of tax. calendar year, thereafter a tax, computed purposes of the preceding sentence, an in­ 86.49 Suspension of running of statute of as provided in section 1001, shall be im­ dividual in the military or naval forces of the limitations. posed upon the transfer during such calendar United States shall, until the termination of 86.50 Addition to the tax for failure to file year by any individual, resident or non­ the present war, be considered under a legal return. resident, of property by gift. Gift taxes for disability to release a power to appoint. 86.51 ‘Additions to the tax in case of the calendar years 1932-1939, inclusive, shall (c) Release on or before January 1, 1943. deficiency. not be affected by the provisions of this (1) A release of a power to appoint before 86.52 Interest on extended payments. chapter, but shall remain subject to the January 1,1943, shall not be deemed a trans­ 86.53 Interest on deficiencies. applicable provisions of the Revenue Act of fer of property by the individual possessing 86.54 Interest on jeopardy assessments, 1932, except as such provisions are modified such power. 86.55 Interest on delinquent taxes. by legislation enacted subsequent to the (2) This subsection shall apply to all calen­ Revenue Act of 1932. dar years prior to 1943. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10859

Sec. 10. Extension op time in connec­ utory provisions, which exempt bonds, consummates a gift of such property tion WITH RELEASE OP POWER OP APPOINTMENT. notes, bills and certificates of indebted­ valued as provided in § 86.19 (h). [Current tax payment act of 1943.] ness of the Federal Government or its (7) If A, without retaining a power to * * * section 452 (c) of the Revenue agencies and the interest thereon from revoke the trust or to change the bene­ Act of 1942 is amended to read as follows: taxation, are not applicable to the gift ficial interests, transfers property in trust (c) Release before Match 1, 1944. (1) tax since this tax is an excise tax on the whereby B is to receive the income there­ A release of a power to. appoint before March transfer, and is not a tax on the subject from for life and at his death the trust 1, 1944, shall not be deemed a transfer of of the gift. However, a gift of a bond, is to terminate and the corpus is to be property by the individual possessing such returned to A provided A survives but if power. note, or certificate of indebtedness issued (2) This subsection shall apply to all cal­ by the Federal Government prior to A predeceases B the corpus is to pass to endar years prior to 1944 and to that part of March 1, 1941, if made by a nonresident C, A consummates a gift of such prop­ the calendar year 1944 prior to March 1, 1944. alien not engaged in business in the erty valued as provided in § 86.19 (g). United States, is not subject to the tax; (8) If the insured purchases a life in­ Sec. 453. Gifts op com m unity property. [Revenue Act of 1942, Title IV, Part II. but a gift by any such nonresident alien surance policy, or pays a premium on a Effective for calendar year 1943 and each of an obligation of the Federal Govern­ previously issued policy, the proceeds of calendar year thereafter.] ment issued on or after March 1,1941, is which are payable to a beneficiary or ben­ Section 1000 (relating to tax on gifts) is subject to the tax. Inasmuch as the tax eficiaries other than his estate, and with amended by inserting at the end thereof the also applies to gifts indirectly made, all respect to which the insured retains no following new subsection: transactions whereby property or prop­ power to revest the economic benefits in (d) Community 'property. All gifts of erty rights or interests are gratuitously himself or his estate or to change the property held as community property under passed or conferred upon another, re­ beneficiaries or their proportionate bene­ the law of any State, Territory, or possession gardless of the means or device employed, fits (or if the insured relinquishes by as­ of the United States, or any foreign country constitute gifts subject to tax. See, fur­ signment, by designation of a new bene­ shall be considered to be the gifts of the hus­ ther, § 86.8. (However, for special provi­ ficiary or otherwise, every such power band except that gifts of such property as sions with respect to the exercise or re­ that was retained in a previously issued may be shown to have been received as com­ policy), the insured consummates a gift pensation for personal services actually ren­ lease of powers of appointment, see para­ dered by the wife or derived originally from graph (b) of this section.) In the fol­ of the value of such policy, or to the ex­ such compensation or from separate property lowing examples of transactions result­ tent of such premium, even though the of the wife shall be considered to be gifts of ing in taxable gifts, it will be understood right of the assignee or beneficiary to the wife. that the transfers were not made for an receive the benefits is conditioned upon Sec. 451. G ifts to w h ic h amendments adequate and full consideration in money his surviving the insured. For the valua­ applicable. [Revenue Act of 1942, Title IV, or money’s worth: tion of life insurance policies, see Part H.] (1) Transfer of property by a corpora­ § 86.19 (i). Except as otherwise expressly provided, the tion to B is-a gift to the latter from the (b) Transfers under power of ap­ amendments made by this Part shall be ap­ stockholders of the corporation. If B pointment. The exercise of a power of plicable only with respect to gifts made in himself is a stockholder, the transfer, not appointment after June 6, 1932, and the calendar, year 1943, and succeeding calen­ being a distribution from earnings or in before January 1, 1943, constitutes a dar years. liquidation to which B is -entitle^ as a gift by the individual possessing the § 86.1 Imposition of tax. The stat­ stockholder, is a gift to him from the power if the power is exercisable .in favor ute imposes no tax upon property, but other stockholders. of any person or persons in the discre­ subjects to tax-transfers of property by (2) The transfer of property to B tion of such individual, or, however lim­ gift. The statute taxes all such trans­ where there is imposed upon B the obli­ ited as to the persons or objects in whose fers of property (other than gifts speci­ gation of paying a commensurate annu­ favor the appointment may be made, if fied in section 1003 (b) (2) and (3) and ity to C is a gift to C. it is exercisable in favor of the individ­ other than releases before March 1,1944, (3) The payment of money or the ual possessing the power, his estate, his of powers to appoint created on or before transfer of property to B in consideration ‘creditors, or the creditors of his estate. October 21, 1942, the date of enactment whereof B is to render a service to C, is a The release before March 1, 1944, of a of the Revenue Act of 1942) to the extent gift to C, or both to B and C, depending power to appoint created on or before that they exceed the deductions author­ on whether the service to be rendered October 21, 1942, the date of enactment ized by section 1004. The tax is not lim­ by B to C is or is not an adequate and of the Revenue Act of 1942, is excepted ited in its imposition to transfers of full consideration in money or money’s from the application of the tax by reason property without a valuable considera­ Worth for that which is received by B. of the express provisions of section tion, which at common law are treated (4) If A creates a joint bank account 452 (c) of the Revenue Act of 1942, as as gifts, but extends to- sales and ex­ for himself and B (or similar type of amended by section 10 of the Current changes for less than an adequate and ownership where A can regain the entire Tax Payment Act of 1943. It is pre­ full consideration in money or money’s fund without B’s consent), there is a gift sumed that all general powers of ap­ worth. (See § 86.8.) The tax applies to to B when B draws upon the account for pointment are releasable, unless the local all individuals, whether resident or non, his own benefit, to the extent of the law on the subject is to the contrary; and resident of the United States, but, in the amount drawn. it is presumed that the method em­ case of a nonresident not a citizen, the (5) If A with his own funds purchases ployed to release the power is effective, tax applies only to transfers of property property and has the title thereto con­ unless it is not in accordance with the situated within the United States. For veyed to himself and B as joint owners, local law on the subject (or, in the the definition of “resident,” see § 86.4. with rights of survivorship (other than absence of such local law, is not in ac­ With reference to the situs of property, a joint ownership described in example cordance with the local law relating to see § 86.18. similar transactions). Section 452 (c) (4) of this section), but which rights may of the Revenue Act of 1942, however, § 86.2 Transfers reached—(a) In gen­ be defeated by either party severing his does not apply to any release of a power eral. The statute imposes a tax whether^ interest, there is a gift to B in the amount reserved, directly or indirectly, by a do­ the transfer is in trust or otherwise, of one-half the value of such property. nor upon a transfer, as distinguished whether the gift is direct or indirect, and (6) If a husband with his own funds from a donee of a power of appointment whether the property is real or personal, purchases property and has the title who releases the power which he had tangible or intangible. Thus, for exam­ thereto conveyed to himself and wife as received from another person. See § 86.3 ple, a taxable transfer may be effected tenants by the entirety, and under the with respect to the taxability of the re­ by the declaration of a trust, the forgiv­ law of the jurisdiction governing the ing of a debt, the assignment of a judg­ linquishment of reserved powers. ment, the assignment of the benefits of a rights of the tenants there is no right of During the calendar year 1943 and contract of insurance, or the transfer of severance by which either of the tenants, any calendar year thereafter, section cash, certificates of deposit, or Federal, acting alone, can defeat the right of the 1000 (c), as added by the Revenue Act State, or municipal bonds. Various stat­ survivor to the whole of the property, he of 1942. applies, subject, however, to sec- 10860 FEDERAL REGISTER, Thursday, A ugust 5, 1943

tion 452 (c) of such Act, as amended estate, his creditors, or the creditors of trustee who is a disinterested third party by section 10 of the Current Tax Pay­ his estate. not receiving any beneficial interest upon ment Act of 1943. That is, during such (3) The release of a power to ap­ such transfer, upon the exercise or re­ years an exercise or release (other than, point created on or before October 21, lease of the power by the life tenant no a release prior to March 1, 1944), with­ 1942, the date of the enactment of the part of the gift of such remainder is out an adequate and full consideration Revenue Act of 1942, which power is attributable to the trustee personally. in money or money’s worth, of a power exercisable in favor of the donee of the Similarly, if property is transferred in of appointment created on or before Oc­ power (who is the appointor), his credi­ trust by a grantor reserving the power tober 21, 1942, the date of enactment of tors, his estate, or the creditors of to alter, amend, revoke, or terminate the the Revenue Act of 1942 (including a his estate, if on such date such ap­ trust with the consent of the trustee who power to appoint exercisable in con­ pointor was under a legal disability to is a disinterested party not receiving any junction with another person) consti­ release such power and if the release beneficial interest upon the transfer, the tutes a gift by the individual possessing thereof is effected prior to March 1, exercise or relinquishment of such power such power, except in the case of the 1944, or the day after six months im­ by the grantor with the consent of such following: mediately following the termination of trustee is not a taxable transfer by the (1) The exercise or release of a power the legal disability, whichever is later. latter. Ordinarily, powers of manage­ to appoint which is not exercisable to The legal disability referred to is deter­ ment with respect to property in trust, any extent for the benefit of such in­ mined under local law and may include such as the determination of whether dividual, his creditors, his estate, or the the disability of an insane persbn, a distributions shall be made annually or creditors of his estate, and which is ex­ minor, or an unborn child. The fact that quarterly, the making of investments and ercisable in favor of only one or more a power of appointment of the type pos­ other persons or objects: reinvestments, or 'the determination of sessed by the individual was not gen­ items of income or principal under (i) Within a class which does not in­ erally releasable under the. local law does clude any others than the spouse of recognized rules of accounting, are not not place the individual under a legal dis­ powers of appointment over property such individual, spouse of the creator ability within the meaning of section 452 under section 1000 (c). of the power, descendants of such in­ (b) (2) of the Revenue Act of 1942. Until dividual or his spouse, descendants of the termination of the present war, an A power to appoint is exercised where the creator of the power or his spouse, individual in active service in the mili­ the property subject thereto is appointed spouses of such descendants, charitable, tary or naval forces of the United States to the taker in default of appointment, etc., organizations described in section on October 21, 1942, shall be considered regardless of whether or not the ap­ 1004 (a) (2) and charitable, etc., or­ under a legal disability to release a power pointed interest and the interest in de­ ganizations described in section 1004 (b); to appoiht while such individual is in fault of appointment are identical, and or such service. regardless of whether or not the ap­ (ii) Within a restricted class if such If a power to appoint is exercised by pointee renounces any right to take individual did not receive any bene­ creating another power to appoint, to under the appointment. For the pur­ ficial interest, vested or contingent, in the extent of the property*subject to such poses of section 1000 (c), a release of a the property from the creator of the second power to appoint, such first power power of appointment need not be ex­ power or thereafter acquire any such shall not be considered excepted in (1) press or formal in character. For exam­ interest. above of this paragraph. For this pur­ ple, the failure to exercise a power of pose the statute prescribes that the appointment within a specified time, re­ For the purposes of this paragraph, sulting in the termination of the power the term “descendant” includes adopted value of the property subject to such second power to appoint shall be its value of appointment, is taxable if the other and illegitimate descendants, and the conditions imposed by section 1000 (c) term “spouse” includes former spouse. unreduced by any precedent or subse­ are present. The treatment of adopted and illegit­ quent interest not subject to such power imate children (and their descendants, to appoint. Thus if the donor has a The reduction in scope of a power of and their adopted and illegitimate chil­ power to appoint a fund of $100,000 appointment, as defined in section 1000 dren (and their descendants and their within a class consisting only of his chil­ (c), to an excepted power under section adopted .and illegitimate children) as dren (which is one of the excepted pow­ 1000 (c) (1) or (2), which is not a power descendants, if such children would ers) and during his lifetime exercises of appointment as thus defined, consti­ be descendants had they been born such power by giving one child a power tutes the release of the power of appoint­ as legitimate children in the station to appoint $25,000 of such fund and by ment. In such case, the release is ef­ to which they are adopted or born. making an outright appftintment of fected at such time as under the applica­ The provisions of (ii) apply to a power $75,000, only $25,000 is considered a gift. ble law the power cannot be exercised'in possessed by a disinterested trustee or If, however, the individual had appointed favor of persons or objects other than one occupying a similar status to ap­ the income from the entire fund to such those described in section 1000 (c) (1) point within a relatively small class. child for life with power in such child or (2). If such release of a power created For example, a power to appoint within to appoint the remainder in his will, the on or before October 21, 1942, the date a class composed of A’s children would whole $100,000 would be considered a of enactment of the Revenue Act of 1942, be a power to appoint within a restricted gift. This provision applies whether or is effected prior to March 1, 1944 (or, in class. On the other hand, a power to not the newly created power to appoint a case described in (3) above of this appoint to anyone except A and his is of a kind described in (1) above of paragraph, relating to persons under a family would not be a po^er confined this paragraph. legal disability, prior to the date speci­ to a restricted class. The restricted The term “power of appointment” in­ fied therein), a taxable transfer does not character of a class is not affected by cludes any power received, by the ap­ result. For the purpose of determining the fact that the decedent has power pointor from another person which is in whether a power created on or before to appoint to any number of charitable, substance and effect a power to appoint October 21, 1942, satisfied the require­ etc., organizations described In section regardless of the nomenclature used in ments of section 1000 (c) (2) on March 1004 (a) (2) or (b). A power to ap­ creating the power and local property 1, 1944 (or other applicable date in a point is not conflned-to a restricted class law connotations. For example, if a case described in (3) above of this para­ merely because the power is not exercis­ settlor transfers property in trust for the graph), the fact as to whether the indi­ able in favor of such individual, his life of his wife with a power in the wife vidual received any beneficial interest in creditor^, his estate, or the creditors of to appropriate or consume the principal the property is to be ascertained without his estate, or all of them. of the trust, the wife has a power of regard to the power to appoint which he (2) The release of a power to ap­ appointment and the release of such a received. If such release is effected on point created on or before October 21, power constitutes a taxable transfer. or after March 1,1944 (or, in a case de­ 1942, the date of the enactment of the On the other hand, if, for example, a scribed in (3) above of this paragraph, Revenue Act of 1942, which is not a power of appointment with respect to relating to persons under a legal dis­ power exercisable in favor of the donee the remainder, exercisable by the life ability, on or after the date specified of the power (who is the appointer), his tenant, is subject to the consent of the therein), a taxable transfer results. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10861

Section 1000 (c) does not apply to a property, or to such income. The rule cisable by him in conjunction with any power reserved, directly or indirectly, by established by this statute for apportion­ person not having a substantial adverse a donor upon a transfer, as distinguished ing the respective contributions of the interest in the disposition of the trans­ from the possessor of a power of appoint­ spouses is applicable regardless of vary­ ferred property or the income therefrom. ment received from another person. See ing local rules of apportionment, and A trustee, as such, is not a person having § 86.3 with respect to the taxability of State presumptions are not operative an adverse interest in the disposition of reserved powers. against the Commissioner. the trust property or its income. (c) Transfers of community property The relinquishment or termination of § 86.3 Cessation of donor’s dominion a power to change the disposition of after 1942. During the calendar year and control. The tax is not imposed the transferred property, occurring 1943 and any calendar year thereafter upon the receipt of the property by the any gift of property held as commu­ donee, nor is it necessarily determined otherwise than by the death of the donor nity property under the law of any by the measure of enrichment resulting (the statute being confined to transfers State, Territory, or possession of the to the donee from the transfer, nor is by living donors), is regarded as the United States, or any foreign coun­ it conditioned upon ability to identify event which completes the gift and try constitutes a gift of the husband the donee at the time of the transfer. causes the tax to apply. For example, for the purpose of the gift tax stat­ On the contrary, the tax is a primary if A transfers property in trust for the ute (regardless of whether under the and personal liability of the donor, is benefit of B and C but reserves the terms of the transfer the husband alone an excise upon his act of making the power as trustee to change the propor­ or the wife alone is designated as the transfer, is measured by the value of the tionate interests of B and C, and if A donor or whether both are so designated property passing from the donor, and thereafter has another person appointed as donors), except to the extent that attaches regardless of the fact that the trustee in place of himself, such later sucb property is shown (1) to have been identity of the donee may not then be relinquishment of the power by A to the received as compensation for personal new trustee completes the gift of the knofwn or ascertainable. transferred property, whether or not the services actually rendered by the wife or As to any property, or part thereof or derived originally from such compensa­ new trustee has a substantial adverse in­ interest therein, of which the donor has terest. The receipt of income or of tion, or (2) to have been derived orig­ so parted with dominion and control as other enjoyment of the transferred inally from separate property of the wife. to leave in him no power to change the The entire property comprising the gift property by the transferee or by the disposition thereof, whether for his own beneficiary (other than by the donor is prima facie a gift of the husband, but benefit or for the benefit of another, the any portion thereof which is shown to himself) during the interim between the gift is complete. But if upon a transfer making of the initial transfer and the be economically attributable to the wife of property (whether in trust or other­ as prescribed in the preceding sentence relinquishment br termination of the wise) the donor reserves any power over power operates to free such income or constitutes a gift of the wife. thé disposition thereof, the gift may be The rule stated in the preceding para­ other enjoyment from the power, and wholly incomplete, or may be partially constitutes a gift of such income or of graph applies alike to a transfer by way complete and partially incomplete, de­ of gift of community property to a third such other enjoyment taxable as of the pending upon all the facts in the particu­ calendar year of its receipt. party or third parties, to a division of lar case. Accordingly, in every case of such community property between hus­ If the donor contends that the power a transfer of property subject to a re­ is of such nature as to render the gift band and wife into the separate property served power, the terms of the power of each, and to a transfer by the husband incomplete, and hence not subject to the must be examined and its scope deter­ tax as of the calendar year of the initial and wife of any part of such community mined. property into the separate property transfer, the transaction shall be dis­ A gift is incomplete in every instance closed in the return and evidence show­ either of the husband or of the wife, where a donor reserves the power to re­ or into a joint estate or tenancy by the ing all relevant facts, including a copy vest the beneficial title to the property of the instrument of transfer, should be entirety of both spouses. In all of such in himself. A gift is also incomplete cases the value of the property so trans­ submitted. where and to the extent that a reserved If for any calendar year prior to the ferred or so divided, as the case may be, power give the donor the right to name is a gift by the husband to the extent calendar year-1939 a transfer has been new beneficiaries or to change the in­ subjected to payment of the tax despite that it exceeds the aggregate amount of terests of the beneficiaries as between the value of that portion which is shown the fact that the donor retained a power themselves. Thus, the transfer of an to name new beneficiaries or to change to be economically attributable to the estate for life where, by an exercise of wife, as prescribed in the preceding par­ the interests of the beneficiaries as be­ the power, the estate may be terminated tween themselves, and if the tax for such agraph, and of the value of the hus­ or cut down to one of less value, and band’s interest in such property after calendar year has been finally deter­ without restriction upon the extent to mined on such basis, and for all gift such transfer or division. The value of which the estate may be so cut down, the property so transferred or so divided, tax purposes such transfer has been constitutes an incomplete gift. If in this treated, for such calendar year and each as the case may be, is a gift by the wife example the power was confined to the to the extent that the portion of such subsequent calendar year, as subject to right to cut down the estate for life to the tax, and the donor agrees, in a clos­ value which is shown to be economically one for a term of five years, the certainty attributable to her, as prescribed in the ing agreement executed under the of an estate for not less than that term provisions of section 3760, that he will preceding paragraph, exceeds the value results in a gift to that extent complete. of her interest in such property after continue so to treat such transfer, then A gift shall not be considered incom­ the relinquishment or termination of such transfer or division. See subpara­ plete, however, merely because the donor graphs (5) and (6) of paragraph (a) the power so retained by the donor shall reserves the power to change the manner not be treated as a gift subject to the of this section. No gift tax results from or time of enjoyment thereof. Thus, the a transfer on or after January 1, 1943, creation of a trust -the income of which tax. of separate property of either spouse § 86.4 Residence. The statute im­ into community property. is to be paid annually to the donee for a Property derived originally from com­ period of years, the corpus being distrib­ poses the tax upon the transfer of prop­ pensation for personal services actually utable to him at the end of the period, erty by gift made by any individual, resi­ rendered by the wife or from separate and the power reserved by the donor dent or nonresident, but provides that in property of the wife includes property being limited to a right to require that, the case of a nonresident not a citizen of that may be identified as (1) income instead of the income being so payable, the United States the tax shall apply to yielded by property received as such it should be accumulated and distributed a transfer only if the property is situated compensation or by such separate prop­ with the corpus to such donee at the within the United States. (See § 86.18.) erty, and (2) property clearly traceable termination of the period, constitutes a If the donor is a citizen of the United (by reason of acquisition in exchange, completed gift. A donor shall be considered as him­ States, whether a resident or a nonresi­ or other derivation) to property received dent, thereof, or is a resident of the as such compensation, to such separate self having the power where it is exer­ 10862 FEDERAL REGISTER, rftwrsdaÿ, A ugust 5, 1943

United States, whether or not a citizen definitely will not suffice to constitute in excess of $2,500,000 58% p'er centum in thereof, the tax applies, regardless of domicile, nor will intention to change addition of such excess. where the property, whether real or per­ domicile effect such change unless ac­ $560,700 upon net gifts of $2,500,000; and sonal, is situated. companied by an actual removal. upon net gifts in excess of $2,500,000 and not A resident is one who has his domicile in excess of $3,000,000, 30% per centum in in the United States (including only the Sec. 1001. Computation of tax. addition of such excess. (a) The tax for each calendar year shall $714,450 upon net gifts of $3,000,000; and States, the Territories of Alaska and Ha­ be an amount equal to the excess of— upon net gifts in excess of $3,000,000 and not waii, and the District of Columbia) at the (1) A tax, computed in accordance with in excess of $3,500,000, 33 per centum in time of the gift. (See section 3797 (a) the Rate Schedule hereinafter set forth, on addition of such excess. (9).) All others are nonresidents. A the aggregate sum of the net gifts for such $879,450 upon net gifts of $3,500,000; and person acquires a domicile in a place by calendar year and for each of the preceding upon net gifts in excess of $3,500,000 and living there for even a brief period of calendar years, over not in excess of $4,000,000, 35% per centum v (2) A tax, computed in accordance with in addition of such excess. ' time with no definite present intention of the said Rate Schedule, on the aggregate sum $1,055,700 upon net gifts of $4,000,000; and moving therefrom. Residence without of the net gifts for each of the preceding upon net gifts in excess of $4,000,000 and not the requisite intention to remain in- calendar years. in excess of $4,500,000, 37% per centum in addition of such excess. $1,243,200 upon net gifts of $4,500,000; and rate schedule upon net gifts in excess of $4,500,000 and not (as amended by section 402 (a) of the Revenue Act of 1941; effective for the calendar year 1942 in excess of $5,000,000, 39% per centum in and each calendar year thereafter). J addition of such excess. $1,441,950 upon net gifts of $5,000,000; and If the net gifts are The tax shall be Not over $5,000______upon net gifts in excess of $5,000,000 and not 2%% of the net gifts. in excess of $6,000,000, 42 per centum ili ad­ Over $5,000 but not over $10,000______$112.50, plus 5%% of excess over $5.000. Over $10,000 but not over $20,000_____ dition of such excess. $375, plus 8% % of excess over $10,000. $1,861,950 upon net gifts of $6,000,000; and Over $20,000 but not over $30,000____ $1,200, plus 10%% of excess over $20,000. Over $30,000 but not over $40,000_____ upon net gifts in excess of $6,000,000 and not $2,250, plus 13% % of excess over $30,000. in excess of $7,000,000, 44% per centum in Over $40,000 but not over $50,000_____ $3,600, plus 16% % of excess over $40,000. Over $50,000 but not over $60,000______addition of such excess. $5,250, plus 18% % of excess over $50,000. $2,304,450 upon net gifts of $7,000,000; and Over $60,000 but not over $100,000____ $7,125, plus 21% of excess over $60,000. Over $100,000 but not over $250,000_:___ upon net gifts in excess of $7,000,000 and not $15,525, plus 22% % of excess over $100,000. in excess of $8,000,000, 45% per centum in Over $250,000 but not over $500,000__I $49,275, plus 24% of excess over $250,000. addition of such excess. Over $500,000 but not over $750,000____ $109,275, plus 26%% of excess over $500,000. Over $750,000 but not over $1,000,000_ $2,761,950 upon net gifts of $8,000,000; and $174,900, plus 27%% of excess over $750,000. upon net gifts in excess of $8,000,000 and not Over $1,000,000 but not over $1,250,000. $244,275, plus 29%% of'excess over $1,000,000. Over $1,250,000 but not over $1,500,000. in excess of $9,000,fl00, 47% per centum in $317,400, plus 31%% of excess over $1,250,000. addition of such excess. Over $1,500,000 but not over $2,000,000. $396,150, plus 33%% of excess over $1,500,000. Over $2,000,000 but not over $2,500,000. $3,234,450 upon net gifts of $9,000,000; and $564,900, plus 36%% of excess over $2,000,000. upon net gifts in excess of $9,000,000 and not Over $2,500,000 but not over $3,000,000. $748,650, plus 39%% of excess over $2,500,000. Over $3,000,000 but not over $3,500,000. in excess of $10,000,000, 483% per centum in $947,400, plus 42% of excess over $3,000,000. addition of such excess. Over $3,500,000 but not over $4,000,000. $1,157,400, plus 44%% of excess over $3,500,- 000. $3,721,950 upon net gifts of $10,000,000; and Over $4,000,000 but not over $5,000,000. upon net gifts in excess of $10,000,000 and $1,378,650, plus 47%% of excess over $4,000,- not in excess of $20,000,000, 50% per centum 000. in addition of such excess. Over $5,000,000 but not over $6,000,000. $1,851,150, plus 50%% of excess over $5,000,- 000. $8,746,950 upon net gifts of $20,000,000; Over $6,000,000 but not over $7,000,000., $2,353,650, plus 52% % of excess over $6,000,- and upon net gifts in excess of $20,000,000 000. and not in excess of $50,000,000, 513% per Over $7,000,000 but not over $8,000,000.. $2,878,650, plus 54%% of excess over $7,000- centum in addition of such excess. 000. $24,271,950 upon net gifts of $50,000,000; Over $8,000,000 but not over $10,000,000. $3,426,150, plus 57% of excess over $8,000,000. and upon net gifts in excess of $50,000 000, Over $10,000,000______$4,566,150, plus 57%% of excess over $10,000,- 52% per centum in addition of such excess. 000. Sec. 207. Gif t tax. [Revenue Act of 1940. Enacted on June 25,1940; effective for calen­ (b) For the purpose of this section the $4,050 upon net gifts of $70,000; and upon dar years 1940 and 1941.] term “preceding calendar years” means the net gifts in excess of $70,000 and not in excess Section 1001 of the Internal Revenue Code calendar year 1932 and all calendar years of $100,000, 10% per centum in addition of is amended by adding at the end thereof the intervening between the calendar year 1932 such excess. following new subsection: and the calendar year for which the tax is being computed. $7,200 upon net gifts of $100,000; and upon (d) Defense tax for 1940-1945. Despite the net gifts in excess of $100,000 and not in provisions of subsection (a) — (c) Cross reference. For definition of excess of $200,000, 12% per centum in addi­ “calendar year”, see section 1030 (a). tion of such excess. (1) The tax for each of the calendar years 1941 to 1945, both inclusive^ shall be an RATE SCHEDULE $19,950 upon net gifts of $200,000; and amount equal to the excess of— upon net xglfts in excess of $200,000 and not (under section 1001 as enacted on February (A) 110 per centum of a tax, computed in 10, 1939; effective for calendar years 1940 in excess of $400,000, 15 per centum in addi­ and 1941) tion of such excess. accordance with the Rate Schedule hereinbe­ $49,950 upon net gifts of $400,000; and fore set forth, on the aggregate sum of the Upon net gifts not in excess of $10,000, 1 % upon net gifts in excess of $400,000 and not net gifts for such calendar year and for each per centum. in excess of $600,000,17% per centum in addi­ of the preceding calendar years, over $150 upon net gifts of $10,000; and upon net tion of such excess. (B) 110 per centum of a tax, computed in gifts in excess of $10,000 and not in excess $84,450 upon net gifts of $600,000; and upon accordance with the said Rate Schedule, on of $20,000, 3 per centum in addition of such the aggregate sum of the net gifts for each excess. net gifts in excess of $600,000 and not in excess of $800,000, 19% per centum in addi­ of the preceding calendar years. $450 upon net gifts of $20,000; and upon net tion of such excess. (2) The tax for the calendar year 1940 shall gifts in excess of $20,000 and not in excess of be the sum of (A) the tax computed under $30,000, 4% per centum in addition of such $123,450 upon net gifts of $800,000; and upon net gifts in excess of $800,000 and not subsection (a), plus (B) an amount which excess. bears the same ratio to 10 per centum of the $900 upon net gifts of $30,000; and upon in excess of $1,000,000, 21% per centum in addition of such excess. tax so computed as the amount of gifts made net gifts in excess of $30,000 and not in excess after the date of the enactment of the Reve­ of $40,000, 6 per centum in addition of such $166,950 upon net gifts of $1,000,000; and excess. upon net gifts in excess of $1,000,000 and not nue Act of 1940 bears to the total amount of $1,500 upon net gifts of $40,000; and upon in excess of $1,500,000, 24 per centum in ad­ gifts made during the year. For thie purposes net gifts in excess of $40,000 and not in excess dition of such excess. of this paragraph, the term “gifts” does not of $50,000,'7% per centum in addition of such $286,950 upon net gifts of $1,500,000; and include giftr which, under section 1003 (b) excess. (2), are not to be included in computing the upon net gifts in excess of $1,500,000 and not total amount of gifts made during thè calen­ $2,250 upon net gifts of $50,000; and upon in excess of $2,000,000, 26% per centum in net gifts in excess of $50,000 and not in excess dar year 1940, or gifts which, in the case of a addition of such excess. citizen or resident, are allowed as a deduction of $70,000, 9 per centum in addition of such $418,200 upon net gifts of $2,000,000; and excess. by section 1004 (a) (2), or gifts which, in. the upon net gifts in excess of $2,000,000 and.not case of a nonresident not a citizen of the FEDERAL REGISTER, Thursday, A ugust 5, 1943 10863 Tax on $2,500 at 21 percent (from United States, are allowed as a deduction by line in the second subcolumn of the ap­ second subcolumn of column 1)— 525 section 1004 (b). propriate column. An illustration of the Sec. 402. G ift tax bates. [Revenue Act of use of the table follows. Tax on net gifts of $62,500-----— 7,650 1941.] The tax according to the rate sched­ (a) Rates. The Rate Schedule of section ule in column 1 upon net gifts of $62,500 For examples showing computation of 1001 of the Internal Revenue Code is amended is computed as follows: tax for the calendar years 1940, 1941, to read as follows: Tax on $60,000 (from first subcolumn and 1943, including the defense tax for * * * * * of column 1) ______$7,125 the years 1940 and 1941, see § 86.7. (b) Years to which amendments applica­ ble. The amendments made by this section Table fob Competing Gift Tax shall be applied in computing the tax for the calendar year 1942 and each calendar year (2) thereafter (but not the tax for the calendar (A) (B) (1) year 1941 or a previous calendar year), and In effect for calendar year 1942 and In effect for calendar years such amendments shall be applied in all for each calendar year thereafter 1940 and 1941 computations in respect of the calendar year Amount of net 1941 and previous calendar years for the pur­ Amount of net gifts not exceed­ Rate of tax gifts equaling— ing— Rate of tax on excess pose of computing the tax for the calendar on excess Tax on amount over Tax on amount in over amount year 1942 and any calendar year thereafter. column (A) in column (A) amount in (c) Defense tax repealed. Section 1001 (d) in column column' of the Internal Revenue Code (relating to (A) (A) defense tax for five years on gifts) is repealed. § 86.5 Tax rate schedules. The rate P e rc en t P e rc en t 15.000 2% 1% schedule of section 1001 of the Internal 10.000 $112.50 5% $75 m $5,000 3 Revenue Code as enacted on February 10, C00 20,000 375.00 m 150 20,000 30, C00 1,200. 00 10H 450 4 % 10, 1939, is applicable in computing the 40.000 2,250.00 13)4 900 6 ■ 30,0G0 1,500 7% tax under the provisions of subsection 40.000 50.000 3,600.00 16)4 60.000 5,250. 00 m 2,250 9 50,0C0 9 (a) of that section for the calendar 60.000 70,000 7,125.00 21 3,150 9,225.00 21 4,050 10% years 1940 and 1941. The defense tax 70,000 100,000 12% 100,000 200,000 15,525.00 22)4 7,200 imposed by subsection (d) of section 38,025.00 22)4 19,950 15 200,000 250.000 15 1001 (as added by section 207 of the 250.000 400.000 49, 275.00 24 27,450 500.000 85,275.00 24 49,950 17M Revenue Act of 1940) is applicable to the 400.000 67,200 17M 600,0C0 600, C00 109,275.00 26M calendar years 1940 and 1941. For such 750, COO 135,525. 00 26 84,450 19)1 600.000 113, 700 19)1 750.000 174,900.00 27% years the tax is the sum of the amount 188, 775.00 27% 123,450 21% 800.000 166,950 24 computed in accordance with the rate 1.000, COO 244,275.00 *■ 29)4 317,400.00 31)4 226,950 24 schedule plus 10 percent thereof (or plus 1.250.000 286,950 26M 1,500,000/ 396,150.00 a proportion of such 10 percent for the 564,900.00 36)4 418, 200 28)1 ■ 2,000,000 560, 700 30)1 calendar year 1940 as explained in 2.500.000 748,650.00 39)4 - 947,400.00 42 714, 450 33 § 86.7), and only such 10 percent or pro­ 3.000. 000. 35 3.500.000 1,157,400.00 44)4 879,450 1,055,700 37% portion thereof is referred to as the 4.000, -000 i; 378,650.00 47 % 1,614,900.00 47)4 1,243, 200 -39)1 defense tax. The Revenue Act of 1941 4.500.000 42 5.000. 000 1,851,150.00 50 y . 1,441*950 (section 402) increased the rates and 2,353,650.00 52)4 1,861,950 44 % 6.000. 000 2,304,450 45)1 repealed the defense tax, effective for 7.000. 000 2,878,650.00 54)4 3,426,150.00 57 2,761,950 47)1 8.000. 000 3,234,450 48)1 the calendar year' 1942 and each cal­ 9,000,000 3,996,150.00 57 endar year thereafter, and the rate 10,000, 000 4, 566,150.00 57 )i 3,721,950 50)1 20,000,000 10,341,150.00 57)4 8,746,950 51% schedule of section 1001 as amended by 27,666,150.00 57) 24,271,950 62)1 such Act is applicable in computing the 50,000,000 tax for the calendar year 1942 and each calendar year thereafter. § 86.7 Computation of tax. The first sum of the net gifts for each of the step in the determination of.the tax is preceding calendar years. The fourth § 86.6 Use of table for computing gift to ascertain the amount of the net gifts step is to compute the tax upon the tax. On the following page is a tabula­ for the calendar year for which the re­ total amount of net gifts (as ascer­ tion of the rate Schedules (1) applicable turn is being prepared. (For meaning tained by the third step) by use of to the calendar year 1942 and each calen­ of “net gifts,” see § 86.9.) The second the rate schedule in force for the calen­ dar year thereafter and (2) applicable to step is to ascertain the aggregate sum dar year for which the return is being the calendar years 1940 and 1941. Care of the net gifts for each of the preceding prepared. (See §§ 86.5 and 86.6.) The should be exercised in selecting the ap­ calendar years, considering only gifts fifth step is to compute a tax in accord­ propriate rate schedule (column 1 or 2). made after June 6, 1932. By the words ance with the same rate schedule \ipon Only column 1 should be used in the “aggregate sum of the net gifts for each the aggregate sum of net gifts for each computation of the tax for the year 1942 of the preceding calendar years” (aside of the preceding calendar years only. or any year thereafter. Only column 2 from the amount of the specific exemp­ The sixth step is to subtract from the should be used in the computation of the tion (deductible) is meant the true and amount of tax as computed in the fourth tax for the years 1940 and 1941. correct aggregate of such net gifts, not step the amount of tax as computed in In using the table, select the amount necessarily that returned for such years the fifth step. The amount remaining set out in column A which is equal to, and in respect to which tax was paid. In after such subtraction is the tax for the or which is the largest amount shown determining the aggregate sum of the calendar year for which the return is therein that is less than, the amount of net gifts for each of the preceding calen­ being prepared, except in the case of a the net gifts upon which tax is to be dar years, the total amount of the spe­ return for the calendar year 1940 or computed as provided in § 86.7. The tax cific exemption claimed and allowed for 1941. upon the amount so selected is indicated such preceding years should be deducted, If the return is being prepared for the on the same line in the first subcolumn except that if tax is being computed for calendar year 1940 or 1941, the defense of column 1 or 2. The tax upon any the calendar year 1943 or for any calen­ dar year thereafter such deduction can­ tax, imposed by subsection Xd) of section part of the amount of the net gifts in 1001 of the Internal Revenue Code, as excess of the amount so selected is com­ not exceed $30,000, or if the tax is being computed for the calendar year 1940, added by section 207 of the Revenue Act puted by multiplying the ambunt of such of 1940, must be computed. The defense excess by the percentage indicated on the 1941, or 1942 such deduction cannot ex­ same line in the second subcolumn of ceed $40,000. (See § 86.12.) The third tax was repealed by section 402 of the column 1 or 2. If the amount of the net step is to add to the amount of net Revenue Act of 1941 and is not applicable gifts is less than $5,000, the tax is com­ gifts for the calendar year for which the to gifts made during the calendar year puted at the rate indicated on the first return is being prepared the aggregate 1942 or any calendar year thereafter but No. 154- 10864 FEDERAL REGISTER, Thursday, A ugust 5, 1943

remains in effect for the calendar years 4. Tax computed on item 3 (in ac­ Total included amount of gifts 1940 and 1941. cordance with rate schedule)_31,725 made after June 25, 1940, less If the return is being prepared for the 5. Tax computed on item 2 (in ac­ amount deducted for charitable calendar year 1941, the defense tax is cordance with rate schedule)_18,900 gift made after June 25, 1940 ascertained by computing 10 percent of ($16,000 minus $6,000)______$10, 000.00 6. Tax for year 1943 (item 4 10 percent of $3,375, the amount the tax determined in the manner set minus item 5)______,___ 12,825 of the tax without the addition forth in the first paragraph of this sec­ of the defense tax.______1___ 337. 50 tion. For such calendar year the total Example (2) (showing computation of de­ fense tax for calendar year 1941). During the Defense tax /10,000 \ amount of tax payable is the amount de­ calendar year 1941 a resident donor makes for 1940 y50,000 X $337 5° ) 67. 50 termined in the manner explained in that the following gifts: . Total amount of tax payable for paragraph plus the defense tax of 10 per­ To daughter______$44, 000 calendar year 1940 ($3.375 plus cent thereof. To son___,______:______14, 000 $67.50)------3,442.50 In case of a return for the calendar To a charitable organization______10,000 Sec. 1002. T ransfer for less than ade­ year 1940, the amount of the defense tax quate AND FULL CONSIDERATION, j to be added is that proportion of 10 per­ The amount of his net gifts for preceding Where property is transferred for less than calendar years, subsequent to June 6, 1932, is cent of the tax computed in the manner $50,000. Only $2^,000 of his specific exemp­ an adequate and full consideration in money indicated in the first paragraph of this tion was claimed for such preceding years. or money’s worth, then the amount by which section which the total amount of the The remaining $15,000 of his specific exemp­ the value of the property exceeded the value gifts made after Jun 25, 1940 (deter­ of the consideration shall, for the purpose tion is claimed for the calendar year 1941. of the tax imposed by this chapter, be mined after the allowance pf any appli­ The amount of the net gifts for the calendar deemed a gift, and shall be included in com­ cable exclusions authorized by section year 1941 is determined as follows: puting the amount of gifts made during the 1003 (b) (2) of the Internal Revenue Total gifts______*__•___ $68, 000.00 calendar year. Code, or deductions for charitable, etc., Less exclusions under the section gifts authorized by sections 1004 (a) (2) 1003 (b) (2) of the Internal § 86.8 Transfers for a consideration in and 1004 (b) of the Internal Revenue Revenue Code______12, 000.00 money or money’s worth. Transfers Code, but without the allowance of the reached by the statute are not confined to specific exemption or any portion there­ Total included amount of those only which, being without a valu­ of) bears to the total amount of gifts gifts for year______56,000.00 able consideration, accord with the com­ Total deductions for charitable mon law concept of gifts, but embrace made during the calendar year deter­ gifts ($10,000 less exclusion of mined in the same manner. In comput­ $4,000)______$6,000 as well sales, exchanges, and other dis­ ing this ratio, the exclusion authorized Specific exemption positions of property for a consideration by section 1003 (b) (2) with respect to claimed______15,000 in money or money’s worth to the extent gifts made to the same person both on or that the value of the property transferred before and after June 25,1940, is applied Total deductions______21,000.00 by the donor exceeds the value of the consideration given therefor. However, against the first such gifts made during Amount of net gifts for year____ 35, 000.00 the calendar year. a sale, exchange, or other transfer of In case no reportable gifts were made The total amount of the tax payable for the property made in the ordinary course of during the preceding calendar years, con­ calendar year 1941 is computed as follows: business (a transaction which is bona sidering only gifts made after June 6, 1. Amount of net gifts for year__ $35, 000. 00 fidp, at arm’s length, and free from any 1932, the ta^ for the calendar year for 2. Total amount of net gifts for donative intent), will be considered as which the return is being prepared is the preceding years,______50,000.00 made for an adequate and full considera­ tax computed in accordance with the rate tion in money or money’s worth. A con­ schedule in force for such year upon the 3. Total net gifts______85,000.00 sideration not reducible to a money value, as love and affection, promise of mar­ amount of the net gifts for such calendar 4. Tax computed on item 3 (in year, plus the amount of the defense tax, accordance with rate sched­ riage, etc., is to be wholly disregarded, if applicable. ule)------5,625.00 and the entire value of the property 5. Tax computed on item 2 (in transferred constitutes the amount of the Example (1) (showing computation of tax accordance with rate sched­ gift. for calendar year 1943). A donor makes -gifts ule) ------2,250.00 Sec. 1003. Net gifts. [As originally en­ (other than gifts of future interests in prop­ acted.] erty) during the calendar year 1943 of $30,000 6. Tax on net gifts for year with­ to A and $33,000 to B. After excluding $6,000 (a) General definition. The term “net out addition of defense tax gifts” means the total amount of gifts made for the two donees in accordance with section (item 4 minus item 5)____ 3,375.00 1003 (b) (3), the total amount of gifts made during the calendar year, less the deductions 7. Defense tax (10 percent of provided in section 1004. during that year is $57,000. The specific item 6)------;__ 337.50 exemption was previously exhausted and the (b) Exclusions from gifts.—(1) Gifts prior to 1939. In the case of gifts (other than of amount of the net gifts for 1943 is $57,000. 8. Total tax payable for year The total amount of gifts made by the donor future interests in property) made to any during the preceding years, after excluding (item 6 plus item 7) ___ 3, 712. 50 person by the donor during the calendar year $5,000 for each donee for each calendar year Example (3) (showing computation of de­ 1938 and previous calendar years, the first in accordance with section 1003 (b) (1), is fense tax for calendar year 1940). The facts $5,000 of such gifts to such person shall not, computed as follows: are the . same as In the preceding example for the purposes of subsection (a), be in­ except that the remaining $15,000 of the cluded in the total amount of gifts made Calendar year 1934______'_____$120, 000 donor’s specific exemption is claimed for the during such year. Calendar year 1935______25,000 calendar year 1940 and the gifts to the (2) Gifts after 1938. In the case of gifts daughter, son, and charitable organization (other than gifts in trust or of future in­ Total amount of gifts for pre­ were made during the calendar year 1940, as terests in property) made to any person ceding calendar years______145, 000 follows : by the donor during the calendar year 1939 The aggregate sum of the net gifts for the and subsequent calendar years, the first To daughter before June 26, 1940___$44, 000 $4,000 of such gifts to such persons shall preceding calendar years, $115,000, is deter­ To son after June 25, 1940______14’ 000 mined by deducting a specific exemption of not, for the purposes of subsection (a), be To charitable organization after included in the total amount of gifts made $30,000 from $145,000. The deduction for June 25, 1940______10,000 such specific exemption cannot exceed $30,- during such yfear. OCC, even though $50,000 was allowed as the The determination of the amount of the net Sec. 454. Exclusion from net gifts re­ specific exemption in the computation of the gifts and the computation of the tax, with­ duced. [Revenue Act of 1942, Title IV, Part tax applicable to the preceding years 1934 and out the addition of the defense tax, is the II. Effective for calendar year 1943 and each 1935. See § 86.12. The computation of the same as in the preceding example. calendar year thereafter.] tax for the calendar year 1943 is shown below: The computation of the defense tax and Section 1003 (b) (2) (relating to exclu­ sion of gift!?) is amended to read as follows: 1. Amount of net gifts for year____$57,000 the total amount of the tax payable for the 2. Total amount of net gifts for pre­ calendar year 1940 is shown as follows: (2) Gifts after 1938 and prior to 1943. In . ceding years------115,000 Total included amount of gifts the case of gifts (other than gifts in trust for year, less amount deducted or of future interests, in property) made to 3. Total net gifts______172, 000 any person by the donor during the calendar for charitable gift ($56,000 year 1939 and subsequent calendar years minus $6,000)______$50,000.00 prior to 1943, the first $4,000 of such gifts FEDERAL REGISTER, Thursday, A ugust 5, 1943 10865 to such person shall not, for the purposes uation of future interests, see §86.19 erary, or educational purposes, including the encouragement of art and the prevention of of subsection (a), be included in the total

year, or be spread over a period of years within the United States exclusively for § 86.17 Gifts made in property. A in such amounts as he sees fit, but after religious, charitable, scientific, literary or gift made in property is subject to the the limit has been reached no further educational purposes, including the en­ tax in the same manner as a gift of cash, exemption is allowable. In determining couragement of art and the prevention and the amount of the gift is the value of the aggregate sum of the net gifts for of cruelty to children or animals. the property at the date of the gift. the preceding calendar years (see § 86.7), The deduction is not limited in the case the total amount of the specific exemp­ of donors who were citizens or residents § 86.18 Situs of property. The stat­ tion claimed and allowed for such pre­ to gifts to or for the use of domestic ute imposes a tax upon gifts made by ceding years should be deducted, except corporations, or for use within the citizens of the United States, residents that if tax is being computed for the United States when made to a trust, or or nonresidents thereof, and upon those calendar year 1943 or for any calendar community chest, fund, or foundation, or made by residents of the United States, year thereafter such deduction cannot a fraternal society, order, or association, whether or not citizens, irrespective of exceed $30,000, or if the tax is being com­ operating under the lodge system. whether the property transferred (real puted for the calendar year 1940, 1941, If money or other property is so given or personal, tangible or intangible) be or 1942, such deduction cannot exceed that the income is, for the duration of situated within or without the United $40,000. The specific exemption is au­ a life or a term of years, to be paid to States. But gifts by nonresidents of the thorized only in the case of a citizen or the donor or other individual, or is to be United States who are not citizens resident of the United States. A donor used for a purpose not described in sec­ thereof . (see § 86.4) are subject to tax who was a nonresident not a citizen of tion 1004 (a) (2) or (b), and the prop­ only if the property transferred is, at the the United States at the time of the gift erty is. then to be devoted exclusively time of the transfer, situated within or gifts is not entitled to this exemption. to some one or more of the uses described the United States. § 86.13 Charitable, etc., gifts. In de­ in section 1004 (a) (2) or (b), only the Real estate, tangible personal property, termining the amount of net gifts of a present worth of the remainder is de­ and the written evidence of intangible given calendar year, in the case of a ductible. To determine the present personal property which is treated as donor who was a citizen or resident of worth or value of such remainder (that being the property itself are within the the United States at the time when the is, its value as of the date of the gift), United States if physically situated gifts were made, there may be deducted the amount of the money or the value therein. For example, a bond for the the amount of such gifts as were to or for of the property transferred should be payment of money is not within the the use of (a) the United States, any multiplied by the appropriate factor in United States unless physically situated State, Territory, or any political sub­ column 3 of Table A or B, a part of therein. Stock of a domestic corpora­ division thereof, or the District of Colum­ § 86.19. tion, however, constitutes property with­ bia, for exclusively public purposes; or in the United States, irrespective of (b) any corporation, trust, community § 86.14 Religious, charitable, scien­ where the certificates thereof are physi­ tific, literary, and educational organiza­ cally located. (See section 1030 (b) and chest, fund, or foundation, organized tions. The corporation, or trust, or com­ and operated exclusively for religious, § 86.74.) Intangible personal property charitable, s:ientific, literary, or educa­ munity chest, fund, or foundation to the written evidence of which is not tional purposes, including the encourage­ which a gift is made must meet, three treated as being the property itself con­ ment of art and the prevention of tests to entitle the donor to deduct the stitutes property within the United cruelty to children or animals, provided amount of the gift: (1) It must be or­ States if consisting of a property right no part of the net earnings of such or­ ganized and operated exclusively for one issuing from or enforceable against a ganization inures to the benefit of any or more of the purposes specified in the resident of the United States or a domes­ private shareholder or individual, and statute; (2) it must not by a substantial tic corporation (public or private), ir­ no substantial part of its activities is part of its activities carry on propa­ respective of where such written evi­ carrying on propaganda, or otherwise at­ ganda, or otherwise attempt, to influence dence is physically located. tempting, to influence legislation; or (c) legislation; and (3) no part of its net Paragraph (9) of section 3797 (a) of a fraternal society, order, or association, earnings shall inure to the benefit of the Internal Revenue Code-defines the operating under the lodge system, pro­ private shareholders or individuals. term “United States,” when used in a vided such gifts are to be used by such The donor is not deprived of the right geographical sense, as including only fraternal society, order, or association to deduct an amount equal to the value the States, the Territories of Alaska and exclusively for one or more of the pur­ of property so transferred by reason of Hawaii, and the District of Columbia. poses enumerated in (b); or (d) any the fact that private individuals are the recipients, of the benefits which the or­ § 86.19 Valuation of property, (a) organization of war veterans or auxiliary General. The statute provides that if unit or society thereof if such organiza­ ganization dispenses. Such right is lost, however, where any part of the net earn­ the gift is made in property, the value tion, auxiliary unit, or society thereof is thereof at the date of the gift shall be organized in the United States or any of ings of the organization inures to thè benefit of a private shareholder or in­ considered the amount of the gift. The its possessions, and if no part of its net dividual. value of the property is the price at earnings inures to the benefit of any which such property would change' private shareholder or individual. The § 86.15 Proof required. In order to hands between a willing buyer and a special fund for vocational rehabilita­ prove the right to this deduction, the willing seller, neither being under any tion authorized by section 12 of the donor must submit such documents or compulsion to buy or to sell. The value World War Veterans’ Act, 1924, referred evidence as may be requested by the of a particular kind of property is not to in section 1004, has been discontinued. Commissioner. to be determined by a forced sale price. See notes, 38 U. S. C. 440, 531-539. § 86.16 Charitable, etc., gifts, with Such value is to be determined by ascer­ In case the donor was a nonresident taining as a basis the fair market value not a citizen of the United States at the power to divert. If a fraternal society, order, or association, operating under at the time of the gift of each unit of time the gifts were made, the deduction the property. For example, in the case of the amount of charitable, etc., gifts the lodge system, is empowered to divert a part of the property or fund trans­ of shares of stock or bonds, such unit of is governed by the same rules as those property is a share or a bond. All rele­ applying to similar gifts made by citizens ferred by gift to a use or purpose which would have rendered it, to the extent vant facts and elements of value as of or residents, subject, however, to the two the time of the gift should be considered. following exceptions: (1) If the gift be that it is subject to such power, not deductible had it been directly trans­ (b) Real estate. In returning a gift of made to or for the use of a corporation, real estate, the local assessed value such corporation, must be one created ferred by the donor for such use or pur­ thereof should not be returned as the or organized under the laws of the United pose, deduction will be limited to that value of the gift unless such value repre­ States or of any State or Territory part of the property or fund which is sents the fair market value of the prop­ thereof; and (2) if made to or for the not subject to the exercise of the power. erty as of the date of the gift. (See use of a trust, or community chest, fund, Sec. 1005. G ifts made in property. § 86.24 for manner of listing and de­ or foundation, or a fraternal society, or­ If the gift is made in property, the value scribing real estate in returns.) der, or association, operating under the thereof at the date of the'gift shall be. con­ lodge system, the gift must be for use (c) Stocks and bonds. The value at sidered the amount of the gift. the date of the gift in the case of stocks FEDERAL REGISTER, Thursday, A ugust 5, 1943 10867 within a reasonable period), and by pro­ the donor establishes a lower value. Un­ and bonds, within the meaning of the less returned at face value, plus accrued statute, is the fair market value per share rating the difference between such mean prices to the date of the gift, and by add­ interest, it must be shown by satisfac­ or bond on such date. ing or subtracting, as the case may be, tory evidence that the note is worth less In the case of stocks and bonds listed such prorated portion of the difference to than the unpaid amount because of the on a stock exchange, the mean between or from the mean price obtaining on such interest rate, or date of maturity, or the highest and lowest quoted selling nearest date before the date of the gift. other cause, or that the note is uncol­ prices on the date of the gift shall be If actual sale prices or quoted bona fide lectible in part by reason of the insol­ considered as the fair market value per bid and asked prices are available on a vency of the party or parties liable, or share or bond. If there were no sales on date within a reasonable period prior to for other cause, and that the property, the date of the gift, such value shall be the date of the gift, and if no actual sale if any, pledged or mortgaged as security determined by taking the mean between prices or bona fide bid and asked prices is insufficient to satisfy it. the highest and lowest sales on the near­ are available on a date within a reason­ (f) Annuities, life estates, remainders est date before and the nearest date after able period after the date of the gift, or and reversions—(1) Annuities—General. the date of the gift (both such nearest vice versa, then the mean between such For valuation of annuities purchased dates being within a reasonable period), highest and lowest available sale prices from life insurance companies or other and by prorating the difference between or bid and asked prices may be taken as companies regularly engaged in issuing such mean prices to the date of the gift, the value. annuity contracts, see (i) under this sec­ and by adding or subtracting, as the ca,se If actual sales or bona fide bid and tion. In case the donor creates a trust may be, such prorated portion of the dif­ asked prices are not available, then, in under which a specified annuity is pay­ ference to or from the mean price ob­ the case of corporate or other bonds, tne able to the donee, the value of such gift taining on such nearest date before the value is to be arrived at by giving consid­ should be determined by using Table A date of the gift. For example, assume eration to the soundness of the security, or Table B, whichever i^ applicable, that sales of stock nearest the date of the the interest yield, the date of maturity, shown at the end of this section. If the gift (June 15) occurred two days before and other relevant factors, and, in the annuity is payable at the end of each (June 13) and three days after (June 18) case of shares of stock, upon the basis of annual .period, the factor is obtained and that on such days the mean sale the company’s net worth, earning power, directly from the table. If the annuity prices per share were $10 and $15, respec­ dividend-paying capacity, and all other is payable for the life of an individual, tively. The price of $12 shall be taken as relevant factors having a bearing upon the amount payable annually should be representing the fair market value of a the value of the stock. Complete finan­ multiplied by the figure in column 2 of share of such stock as of the date of the cial and other data upon which the donor Table A opposite the number of years in gift. If, however, on June 13 and June 18 bases his valuation should be submitted column 1 of such table nearest the age the mean sale prices per share were $15 with the return. . ' ...... of the individual (as of the date of the and $10, respectively, the price of $13 shall In cases in which it is established that gift) whose life measures the duration be taken as representing the fair market the value per bond or share of any se­ of the annuity, or if payable for a definite value of a share of such stock as of the curity determined on the basis of selling number of years the amount payable date of the gift. If the security was listed or bid and asked prices as herein pro­ annually should be multiplied by the on more than one exchange, the records vided does not reflect the fair market figure in column 2 of Table B opposite of the exchange where the security is value thereof, then some reasonable mod­ the number of years in column 1 of such principally dealt in should be employed. ification of such basis or other relevant table. In valuing listed stocks and bonds the facts and elements of value shall be con­ Example (1). The donee is made the bene­ donor should observe care to consult ac­ sidered in determining fair market value. ficiary of an annuity of $10,000 payable at curate records to obtain values as of the (d) Interest in business. Care should the end of annual periods during his life. date of the gift. be taken to arrive at an accurate valua­ The age of the donee at the date of the gift In the case of stocks and bonds which is 40 years and 8 months. By reference to tion of any business which the donor Table A, it is found that the figure in column are not listed upon an exchange, but are transfers without an adequate and full 2 opposite 41 years, the number nearest to dealt in through brokers, or have a mar­ consideration in money or money’s worth, the donee’s age, is 14.86102. The value of the ket, the fair market value shall be deter­ whether the interest transferred is that gift'is, therefore, $148,610.20 ($10,000 multi­ mined by taking the mean between the of a partner or of a proprietor. A fair plied by 14.86102). . . highest and lowest selling prices as of the appraisal as of the date of the gift should Example (2). The donor was entitled to date of the gift; or, if there were no sales be made of all the assets of the business, receive an annuity of $10,000 a year payable on that date, such value shall be deter­ at the end of annual periods throughout a tangible and intangible, including good term of 20 years; the donor, when 15 years mined by taking the mean between the will, and the business should be given a have elapsed, makes a gift thereof to his son. highest and lowest sales on the nearest net value equal to the amount which a By reference to Table B, it is found that the date before and the nearest date after willing purchaser, whether an individual figure in column 2 opposite 5 years, the unex­ the date of the gift (both such nearest or a corporation, would pay therefor to a pired portion of the 20-year period, is 4.45182. dates being within a reasonable period), willing seller in view of the net value of The present worth of the annuity is, therefore, and by prorating the difference between the assets of the business and its demon­ $44,518.20 ($10,000 multiplied by 4.45182). such mean prices to the date of the gift, strated earning capacity. Special atten­ (2) Annuities payable at end of semi­ and by adding or subtracting, as the case tion should be given to fixing an adequate annual, quarterly, or monthly periods. may be, such prorated portion of the dif­ figure for the value of the good will of the If the annuity is payable semiannually, ference to or from the mean price ob­ business. quarterly, or monthly, the value should taining on such nearest date before the The factors hereinbefore stated rela­ be determined by multiplying the aggre­ date of the gift. If quotations are ob­ tive to the valuation of other property, gate amount to be paid within a year by tained from brokers, or evidence as to if applicable, will be considered in de­ the figure in column 2 of Table A op­ the sale of securities is obtained from the termining the valuation of a proprietary posite the number of years in column 1 officers of the issuing companies, the or partnership interest in the business. nearest the actual age of the person donor should preserve in his files the let­ All evidence bearing upon such valuation whose life measures the annuity, or the ters furnishing such quotations or evi­ should be submitted with the retqrn, figure in column 2 of Table B opposite dence of sale for inspection when the including copies of reports in any case the number of years the annuity is pay­ return is verified by an investigating in which examinations of the business able, as the case may be, and then multi­ officer. have been made by accountants, engi­ plying the product by 1.01820 for monthly If actual sales are npt available during neers, or any technical experts as of or payments, by 1.01488 for quarterly pay­ a reasoftable period beginning before and near the date of the gift. ments, or by 1.00990 for semiannual pay­ ending after the date of the gift, the fair (e) Notes, secured and unsecured. ments. market value may be determined hy tak­ The value of notes, whether secured or, Example. If, in example (1) . given above ing the mean between the bona fide bid unsecured, will be presumed to be the under (1) Annuities—General, the Annuity is and asked prices on the nearest date be­ amount Qf unpaid principal, plus accrued payable semiannually, the factor, 14.86102, fore and the nearest date after the date should be multiplied by 1.00990 and the prod- of the gift (both such nearest dates being interest to the date of the gift, unless 10868 FEDERAL REGISTER, Thursday, August 5, 1943 uct multiplied by $10,000. The value of the gift is, therefore, $150,081.44 ($10.000X gift will be obtained by multiplying the tract or of a contract for the payment of 14.86102X1.00990). value of the property at the date of the an annuity issued by a company regularly gift by the figure in column 3 of Table engaged in the selling of contracts of that (3) Annuities payable at beginning of A opposite the number of years nearest character is established through the sale annual, semiannual, quarterly, or to the age of the life tenant. In case of the particular contract by the com­ monthly periods— (i) Annuity for life. the remainder or reversion is to take ef­ pany, or through the sale by the company If the first payment of an annuity for the fect at the end of a term of years, Table of comparable contracts. As valuation life of an individual is to be paid at once, B should be used. through sale of comparable contracts is the value of the annuity is the sum of the Example. The donor transferred by gift not readily ascertainable when the gift first payment plus the present worth of a property worth $50,000 which he was en­ is of a contract which has been in force similar annuity the first payment of titled to receive upon the death of his for some time qnd on which further pre­ which is not to be made until the end of brother, to whom the income for life had the first period. been bequeathed. The brother at the date mium payments are to be made, the value of the gift was 31 years of age. By refer­ may be approximated, unless because of Example. The donee is made the bene­ ence to Table A, it is found that the figure the unusual nature of the contract such ficiary for life of an annuity of $50 a month in column 3 opposite 31 years is 0.31262. approximation is not reasonably close to payable from the income of a trust, subject The value of the gift is, therefore, $15,631 the full value, by adding to the inter­ to the right reserved by the donor to cause ($50,000X0.31262). the annuity to be paid for his own benefit polated terminal reserve at the date of or for the benefit of another. On the day a (g) Transfers conditioned upon sur­ the gift the proportionate part of the payment is due, the donor relinquishes his vivorship. If A, without retaining a gross premium last paid before the date of reserved power. The donee is then 50 years power to revoke the trust or to change the gift which covers the period extending of age. The value of the gift is $50 plus the the beneficial interest, transfers property beyond that date. product of $50 X12 X 12.47032 (see Table A) X The examples given below, so far as re­ 1.01820, or $7,668.37 [$50 plus ($50X12X in trust whereby B is to receive the in­ 12.47032X1.01820) J. come therefrom for life and at his death lating to life insurance contracts, are of the trust is to terminate and the corpus gifts of such contracts on which there are (ii) Annuity for term of years. If the is to be returned to A provided A survives no accrued dividends or outstanding in­ first payment of an annuity for a definite but if A predeceases B the corpus is to debtedness. number of years is to be paid at once, pass to C, A consummates a gift of such Example (I). A donor purchases from a the applicable factor is the product of property less the present value of his life insurance company for the benefit of the factor shown in Table B multiplied right to the corpus should he survive another a life insurance contract or a con­ by 1.02154 for monthly payments, by tract for the payment of an annuity; the 1.02488 for quarterly payments, by the life tenant. The value of such gift value of the gift is the cost of the contract. 1.02990 for semiannual payments, or by is to be determined in accordance with Example (2). An annuitant, having pur­ 1.04 for annual payments. the Actuaries’ or Combined Experience chased from a life insurance company a sin­ Table of Mortality, as extended. gle payment annuity .contract by the terms Example. The donee is the beneficiary of A case involving the value of the right of which he was entitled to receive payments an annuity of $50 a month subject to a re­ of survivorship (provided the gift is com­ of $1,200 annually for the duration of his served right in the donor to cause the an­ pleted and not merely proposed or hypo­ life, five years subsequent to such purchase, nuity or the cash value thereof to be paid and when of the age of 50 years, gratuitously for his own benefit or for the benefit of an­ thetical) may be submitted to the Com­ assigns the contract. The value of the gift other. On the day a payment is due, the missioner, who will furnish the applica­ is the amount which the company would donor relinquishes his power. There are 300 ble factor, computed in accordance with chfirge for an annuity contract providing for payments to be, made covering a period of 25 recognized actuarial principles. the payment of $1,200 annually for the life years, including the payment due. The value (h) Tenancies by the entirety. If of a person 50 years of age. of the gift is the product of $50 X12 X 15.62208 • either a husband or his wife purchases Example (3). A donor owning a life in­ (factor for 25 years, Table B) x 1.02154, or property and causes the title thereto to surance policy on which no further payments $9,575.15 ($50X12X15.62208X1.02154). are to be made to the company (e. g., a single be conveyed to themselves as tenants by premium policy nr paid-up policy) makes a (4) Actuarial calculations by Bureau. the entirety* or if either causes to be gift of the contract. The value of the gift If in the case of a completed gift an created such a tenancy in property al­ is the amount which the company would annuity is to be paid during the life of ready owned* by him or her, and under charge for a single, premium contract of the an individual and in any event for a the law of the jurisdiction governing the same specified amount on the life of a per­ definite number of years, or for more rights of the spouses with respect to the son of the age of the insured. than one life, or in any other manner property neither of them may, acting Example (4)., A gift is made four months rendering inapplicable both Table A and alone, defeat thp right of the survivor after" the last premium due date of an ordinary life insurance policy issued nine Table B, the case may be stated to the of them to the whole of the property, years and four months prior to the gift Commissioner, who will thereupon fur­ the transfer effects a gift from the spouse thereof by the insured, who was 35 years nish the applicable factor. In making owning the property at the time of the of age. at date of issue. The gross annual such calculations when life interests or creation of the tenancy or who furnished premium is $2,811. The computation fol- remainders upon life interests are in­ the consideration in the purchase of the lows: volved, use will be made of the Actuaries’ property. The value of the gift is the Terminal reserve at end of tenth or Combined Experience Table of Mor­ value of such property less the value of year______------$14,601.00 tality, as extended (that being the basis the right, if any, of the donor spouse Terminal reserve at end of ninth of Table A), with interest at 4 percent to the income or other enjoyment of the year------12, 965. 00 per annum compounded annually. property, or share thereof, during the (5) Life estates, terms for years.— joint lives of the spouses, and the value Increase— ------l, 636. 00 Hypothetical annuity. If the gift con­ of the right of the donor spouse to the One third of such-increase (the sists of the donor’s right for life or for whole of the property should he or she gift having been made four the life of another person, or for a term be the survivor of them. The value of months following the last pre­ of years, either to receive the income each of such rights is to be determined in ceding premium due date), is_ 545.33 of certain property or to use nonincome- accordance with the Actuaries’ or Com­ Terminal reserve at end of ninth producing property, a hypothetical an­ bined Experience Table of Mortality, as year------12, 955.00 nuity at the rate of 4 percent of the extended. value of the property should be made the Interpolated terminal reserve at A case of this character (provided the date of gift-.------13, 510. 33 basis of the calculation. A provision gift is completed and not merely pro­ Two-thirds of gross premium for the payment of income in semian­ posed or hypothetical) may be submitted ($2,811)------» 1,874.00 nual, quarterly, or monthly installments to the Commissioner, who will, in accord­ does not affect the value to be assigned Value of the gift------15,384.33 to the life interest. ance with recognized actuarial principles, compute the applicable factor to be used (j) Other property. Any property not (6) Remainders or reversionary in­ in determining such value, and will ad­ terests. If the gift is of a remainder or specifically treated in this section should vise the donor of the factor. be valued in accordance with the rule reversionary interest subject to an out­ (i) Life insurance and annuity con­ standing life estate, the value of the laid down under paragraph (a) of this' tracts. The value of a life insurance con­ section. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10869 thereafter, makes a transfer or transfers TABLE A by gift to any one donee of a value or (Table single life, 4 percent, showing the present worth 2 , 3 total value in excess of $3,000 (or re­ of an annuity, or a life interest, and of a reversionary 1 gardless of value in the case of a gift of interest] Annuity, or Reversion, or present value present value a future interest in property) must file 3 of $1 due at of $1 due at a gift tax return for such year on Form Age the end of each the end of the 709. Any individual citizen or resident Annuity, or Reversion, or year during the year of death of present value present value life of a person a person of speci­ of the United States who within the cal­ of $1 due at of $1 due at of specified age fied age endar year 1940, 1941, or 1942 makes a Age the end of each the end of the year- during the year of death of transfer or transfers by gift to any one life of a person a person of speci­ Annuity Reversion donee of a value or total value in excess of specified age fied age 93...... -___ $0.90647 $0.92667 94 ...... 73687 .93320 of $4,000 (or regardless of value in the 95...... 58435 .93906 case of a gift in trust or of a future in­ 9 6 ...... 46182 .94378 Annuity Reversion .94742 terest in property) must file a gift tax 0______$14. 72829 $0.39507 9 7 ...... 36698 .29586 9 8 ...... 24038 .95229 return for such year on Form 709. A l ...... 17. 30771 .96154 2 ...... 18. 69578 .24247 9 9 ...... 00000 nonresident not a citizen of the United 3 ...... 19.15901 .22465 4 ______19.41226 .21491 States who made such a gift must also 5 „ ...... 19. 55301 .20&50 TABLE B file a return on Form 709 if the subject of 6 ...... 19.61731 .20703 the gift consisted of property situated in 7 ...... 19, 62502 .20673 [Table showing the present worth at 4 percent of an 8 ______19. 61097 .20727 annuity for a term certain, and of a reversionary in­ the United States. The return is re­ 9 ...... * 19.53413 .21022 terest postponed for a term certain] quired even though because of author­ 10 C______19. 45359 .21332 19, 36943 .21656 ized deductions (the specific exemption, 11 ...... 3 12______- 19.28184 ' .21993 1 2 in the case of a citizen or resident, and 13...... 19.16065 .22344 14...... 19.09590 .22708 Present worth ol charitable, public, and similar gifts) no 18.99764 .23086 an annuity of $1, Present worth of 15...... $1, payable at the tax may be payable. Individuals only 16 . . . . ______18.89569 .23478 payable at the .23884 Number of years end of each year, end of a certain are required to file returns as donors, 17...... 18. 79010 number of years 18 .. _____ ... 18.68070 .24305 for a certain and not trusts, estates, partnerships, or 19 ______18. 56751 .24740 number of years corporations. 20 . . ______18. 45038 .25191 2 1 ...... 18. 32932 .25656 Reiersion If the donor dies before filing his re­ 22 18. 20416 .26138 Annuity .26636 1 ...... $0.96154 • $0.961538 turn, the executor of his will or the ad­ 23 •. . 18.07471 .924556 24 ...... 17.94097 .27150 2 ...... 1.88609 ministrator of his estate shall file the .27682 3...... -...... 2.77509 .888996 25 ...... 17.80274 .854804 return. If the donor becomes legally in­ 26 ...... 17. 65984 .28231 4...... 3.62989 .28799 5...... 4.45182 .821927 competent before filing his return, his 27 ______17. 51224- .790314 28...... 17. 35968 .29386 6 ...... -...... 5.24214 guardian or committee shall file the re­ .29991 7 ______—...... 6.00205 .759918 29...... —...... 17.20225 .730690 30 ______17.03961 ‘ .30617 8 ...... 6.73274 turn. .31262 9 ...... 7.43533 .702587 31 . . . ______16.87176 .675564 The return shall not be made by an 32 ...... 16. 69846 .31929 10 ...... 8.11089 .32617 11 . . . ______8. 76047 .649581 agent unless by reason of illness, absence, 33 ...... -...... 16. 51964 .624597 34...... 16.33503 .33327 12...... 9.38507 or nonresidence, the person liable for the .34060 13...... -...... -*— 9.98565 .600574 35 ...... 16.14437 .577475 return is unable to make it within the 36 ...... 15.94755 .34817 14...... -...... 10. 56312 .35599 15...... 11.11839 .555265 37 ...... -...... 15. 74427 .533908 time prescribed. Mere convenience is not 38 ...... 15. 53421 .36407 16...... 11.65229 .37241 17 . ; ...... 12.16567 .513373. sufficient reason for authorizing an agent 39 ...... 15.31722 .493628 40 ...... 15.09295 .38104 18 ...... -...... 12.65929 to make the return. If by reason of ill­ .38996 19...... 13.13394 .474642 4 1 ...... __...... - 14.86102 .456387 ness, absence, or nonresidence, a return 42 ...... 14. 62122 - .39918 20...... 13. £9032 .40871 21...... 14.02916 .438834 is made by an agent, such return must be 43 . . ■ 14.37356 .421955 44 ______14.11860 .41852 22...... 14.45111 ratified by the donor or other person lia­ .42857 23...... 14.85684 .405726 45 ...... 13.85713 .390121 46 ...... 13. 58958 .43886 24 ...... 15. 24696 ble for its filing within a reasonable time .44935 25-...... 15.62208 .375117 47 ...... 13. 31698 .360689 after such person becomes able to do so; 4 8 ...... 13.03942 .46002 2 6 ...... 15.98277 .47088 27„...... —— 16. 32958 *346816 otherwise the return filed by the agent 49 ...... 12. 75716 .333477 CO...... 12. 47032 .48191 28 ...... 16. 66306 will not be considered the return required .49311 29 ...... 16.98371 .320651 51 ...... 12.17919 .308319 by the statute. Supplemental data may 52...... 11. 88408 .50446 30 ...... 17. 29203 53 ...... 11.58531 .51595 r be submitted at the time of ratification. £4 ...... 11. 28325 .52757 The ratification must be in the form of 55 ...... —...... 10.97789 . .53931 Sec. 1006. R eturns. £6 ______10.66982 .55116 (a) Requirement. Any individual who an affidavit, filed with the Commissioner, 57...... -----...... 10.35931 .56310 within the calendar year 1940 or any calendar and must specifically state that the re­ 58___; ______10.04630 .57514 year thereafter makes any transfers by gift £9 ______9.73131 .58726 turn made by the agent has 1 een care­ 6 0 ...... 9.41474 .59943 (except those which under section 1003 are fully examined and that the affiant rati­ 61 ...... - 9.09765 .61163 not to be included in the total amount of fies such return as his own. If a return 62 ...... 8.78052 .62383 gifts for such year) shall make a return un­ 63 ...... 8.46412 .63600 der oath in duplicate. The return shall set is signed by an agent, a statement fully 64...... 8.14888 .64812 explaining the inability of the donor must 6 5 ...... 7.83552 .66017 forth (1) each gift made during the calendar 6 6 ...... — 7. 52476 .67212 year which under section 1003 is to be in­ accompany the return. 67...... 7.21699 .68397 cluded in computing net gifts; (2) the de­ 68 ...... 6.91298 .69565 § 86.21 Donees and trustees required 69 ...... 6.61301 .70719 ductions claimed and allowable under section to file notice of gifts. An information 70...... 6.31716 .71857 1004; (3) the net gifts for each of the pre­ 71 ...... " 6.02612 .72976' ceding-calendar years; and (4) such further return or notice on Form 710 must be 72...... -...... - 5.74003 .74077 information as may be required by regula­ filed by every donee or trustee (except 73 ______5.45928 .75157 74______5.18402 .76215 tions made pursuant to law. in the case of an organization receiving 75...... 4.91463 .77251 (b) Time and place for filing. The re­ a gift for a public, charitable, etc., pur­ 76...... 4.65125 .78264 turn shall be filed on or before the 15th day pose as hereinafter explained) to whom 77...... - ...... 4.39383 .79254 78...... -_____ 4.14286 .80220 of March following the close of the calendar is transferred in any one calendar year 79...... 3.89858 .81159 year with the collector for the district in property by gift for which, as set forth in 80...... 3. 66071 .82074 which is located the legal residence of the 81...... 3.42900 .82965 donor, or if he has no legal residence in the § 86.20, the donor is required to file a 82...... 3.20258 .83836 gift tax return. An organization which 83...... 2.98024 .84691 United States, then (unless the Commissioner 84______2. 76106 .85534 designates another district) with the col­ has been held by the Commissioner to 85...... 2. 54366 .86371 lector at Baltimore, Maryland. come within the purview of section 1004 86 ...... •— 2.32795 .87200 (a) (2) of the Internal Revenue Code 87______2.11384 .88024 § 86.20 Persons required to file return. 88...... 1.90115 .88842 or the corresponding provision of the 89...... 1.69107 .89650 Any individual citizen or resident of the 90...... 1. 4854C .904« United States who within the calendar Revenue Act of 1932 need not file such 91...... 1.28432 .91214 information return if the gift was made 92...... 1.09024 .91961 year 1943, or within any calendar year

! 10870 FEDERAL REGISTER, Thursday, A ugust 5, 1943

by a citizen or resident of the United time, not exceeding thirty days, for making may be readily identified. Thus, there States. An organization which has been or filing the return or list as he deems proper. should be given for each parcel of real held by the Commissioner to come within No such extension of time may be estate a legal description, its area, a the purview of section 1004 (b) of the granted unless the application therefor short statement of the character of any Internal Revenue Code or the corre­ is received by the collector prior to the improvements, and if located in a city sponding provision of the Revenue Act expiration of the period for which the the name of street and number. De­ of 1932 need not file such information extension is requested and authorized. scription of bonds should inclu.de the return if the gift was made by a nonresi­ An extension of time for filing the re­ number transferred, principal amount, dent not a citizen of the United States. turn does not in itself operate to extend name of obligor, date of maturity, rate Copies of this form may be obtained the time for the payment of the tax. of interest, date or dates on which inter­ from any United States collector of in­ est is payable, series number where there ternal revenue upon application. When § 86.23 Form of return. The return is more than one issue, the exchange a gift is made in trust notice thereof must be made on Form 709, copies of upon which listed, or the principal busi­ should be filed by either the beneficiary which will be ‘supplied by the collector ness office of the corporation, if unlisted. of the trust or the trustee, but in such upon application. The return must be Description of stocks should include case one notice only is required. If the filed in duplicate and under oath. If number of shares, whether common or donor retains a power over transferred the return is filed for the calendar year preferred, and, if preferred, what issue property, the notice (which is for infor­ 1943, or for any calendar year there­ thereof, par value, quotation at which mation purposes only) should be filed after, it must set forth every trans­ returned, exact name of corporation, even though it is considered that the re­ fer by gift to any one donee during and, if the stock is unlisted, the location tention of the power renders the trans­ such calendar year, as to which the of the principal business office and State fer wholly incomplete as a gift within donor is required to make a return in which incorporated and the date of the meaning of the statute. The notice under § 86.20, which singly or in the incorporation. If a listed security, state shall be filed in duplicate with the col­ aggregate exceeds $3,000 ’ in value (or principal exchange upon which sold. lector for the district in which the donor regardless of value in the case of a gift Description of notes should include name resides, or with the Commissioner of of a future interest in property). A of maker, date on which given, date of Internal Revenue at Washington, D. C., return filed for- the calendar year 1940, maturity, amount of principal, amount on or before the 15th day of March fol­ 1941, or 1942 must set forth every trans­ of principal unpaid, rate of interest and lowing the close of the calendar year in fer by gift to any one donee during such whether simple or compound; and date which the transfer was made. The no­ calendar year, as to which a return is to which interest has been paid. If the tice shall disclose the following informa­ required under § 86.20, which singly or gift of property includes accrued income tion: (1) Name and address of donor, in the aggregate exceeds $4,000 in value thereon to the date of the gift, the (2) date of transfer, (3) a general de­ (or regardless of value in the case of amount of such accrued income should scription of the property transferred, a gift in trust dr of a future interest be separately set forth. Description of and (4) the approximate value thereof in property). The return shall also set land contracts transferred should in­ at the date of the transfer. If the donee forth the fair market value of all such clude name of vendee, date of contract, dies or becomes legally incompetent, his gifts not made in money, including gifts description of property, sale price, initial executor, administrator, guardian, or resulting from sales and exchanges of payment, amounts of installment pay­ committee, as the case may be, shall file property made for less than an ade­ ments, unpaid balance of principal, in­ such notice as would be required of the quate and full consideration in money terest rate and date prior to gift to which donee. or money’s worth (see § 86.8), giving the fair market value of the property interest has been paid. Description of § 86.22 Time and place of filing return. sold or exchanged and that of the con­ life insurance policies should show the Gift tax returns must be filed in dupli­ sideration received by the donor, both name of the insurer and the number of cate on or before the 15th day of March as of the dsite of sale or exchange. The the policy. A supplemental statement, following the close of the calendar year return shall also contain informatioh Form 938, must be filed for every life in­ in which gifts were made. The return with respect to transfers which the donor surance policy. (See § 86.26.) In de­ shall be filed with the collector of in­ considers incomplete gifts because of scribing an annuity, the name and ad­ ternal revenue for the district in' which his retained power over such transferred dress of the issuing company should be is located the legal residence of the property (see §86.3). The deductions given, or if payable out of a trust or other donor, or, if he has no legal residence in claimed must also be fully set forth. fund such a description as will fully the United States, then, unless the Com­ The instructions printed on the form of identify such trust or fund. If the an­ missioner otherwise designates, with the return should be carefully followed. All nuity is payable for a term of years, the collector of internal revenue at Balti­ documents and vouchers used in pre­ duration of the term and the date on more, Md. When the due date for the paring the return should be retained by which it began should be given, and if filing of the return falls on a Sunday or the donor so as to be available for in­ payable, for the life of any person, the a legal holiday, the due date will be 4;he spection by representatives of the Bu­ date of birth of such person should be day next following which is not a Sunday reau whenever required. Certified or stated. Judgments should be described or a legal holiday. If placed in the mails, verified, copies of all documents required by giving the title of the cause and the the return should be posted in ample by the instructions printed on the form, name of the court in which rendered, time to reach the collector’s office, under or any documents which the donor may date of judgment, name and address of ordinary handling of the mails, on or be­ desire to submit, should be filed with judgment debtor, amount of judgment, fore the date on which the return is the return. rate of interest to which subject, whether required to be filed. If a return is made In addition to the list of gifts made any payments have been made thereon, and so placed in the mails, properly ad­ during the calendar year for which the and, if so, when and,in what amounts. dressed, and postage paid, in ample time return is filed, the return shall set forth Sec. 1007. R ecords and special returns. , to reach the office of the collector on or for each of the preceding calendar years (a) By donor. Every person liable to any before the due date, no penalty will at­ both the amount of gifts (other than tax imposed by this chapter or for the col­ tach should the return not be actually charitable, public, and similar gifts) and lection thereof, shall keep such records, ren­ received by such officer until subsequent the amount of specific exemption der under oath such statements, make such to that date. As to additions to the tax claimed and allowed. returns, and comply with such rules and The tax, if any, for the calendar year regulations, as the Commissioner, with the in the case of failure to file a return approval of the Secretary, may from time to within the period prescribed, see section for which the return is filed shall be com­ time prescribe. 3612 (d) (1) and § 86.50. puted and entered on the return, as pro­ (b) To determine liability to tax. When­ Section 3634 provides: vided by the form. (Bee § 86.7.) ever in the judgment of the Commissioner necessary he may require any person, by If the failure to file a return (other than § 86.24 Description of property listed .notice served upon him, to make a return, a return of income tax) or list at the time on return. In listing upon the return render under oath such statements, or keep prescribed by law or by regulation made the property comprising the gifts made such records, as the Commissioner deems under authority of law is due to sickness or during the calendar year, the description sufficient to show whether or not such per­ absence, the collector may allow such further thereof should be such that the property son is liable to tax under this chapter. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10871

§ 86.25 Aids to determination and col­ date prescribed for the payment of the tax. before the date of the expiration of the lection of tax. Tn assessing and collect­ In such case the amount in respect of which previous extension. ing gift taxes, the Commissioner has the the extension is granted shall be paid on As a condition to the granting of such or before the date of the expiration of the an extension, the Commissioner will benefit of all existing internal revenue period of the extension. laws in so far as such laws are appli­ (c) Voluntary advance payment. A tax usually require the donor to furnish a cable. (See section 1028.) The Com­ imposed by this chapter, may be paid, at the bond in an amount not exceeding double missioner may require any person to election of the donor, prior to the date pre­ the amount for which the extension is keep specific records, render under oath scribed for its payment. desired, or to furnish other security such statements, make such returns, and (d) Fractional parts of cent. In the pay­ satisfactory to the Commissioner for the comply with such rules and regulations, ment of any tax under this chapter a frac­ payment of the liability on or before the as the Commissioner,, with the approval tional part of a cent shall be disregarded date prescribed for the payment in the of the Secretary, may prescribe in order unless it amounts to one-half cent or more, extension, so that the risk of loss to the that he may determine whether such in which case it shall be increased to 1 cent. Government will not be more at the end person is liable for the tax. In accord­ (e) Receipts. The collector to whom any of the extension period than it was at payment of any gift tax is made shall, upon the beginning of the period. If a bond ance with this provision, every individ­ request, grant to the person making such ual shall, for the purpose of determin­ payment a receipt therefor. is required it shall be conditioned upon ing the total amount of his gifts, keep the payment of the amount for which such permanent books of account or rec­ § 86.28 Date of payment. The tax is the extension is granted, together with ords as are necessary to establish the required to be paid by the donor on or interest and additional amounts assessed amount of his total gifts (limited as before the 15th day of March following in connection therewith, in accordance provided in section 1003 (b)), together the close of the calendar year in which with the terms of the extension granted, with the deductions allowable in deter­ the gifts were made, unless an extension and shall be executed by a surety com­ mining the amount of his net gifts, and of time for payment thereof has been pany holding a certificate of authority the other information required to be granted by the Commissioner. (See from the Secretary of the Treasury as shown in a gift tax return. § 86.29.) an acceptable surety on Federal bonds, and shall be subject to the approval of § 86.26 Supplemental data. In order § 86.29 Extension of time for payment the Commissioner. ' In lieu of such a that the Commissioner may determine of tax shown on return. If it is shown to bond, the donor may file a bond secured the correct tax the donor shall furnish the satisfaction of the Commissioner by the deposit of bonds or notes of the such supplemental data as may be that the payment of the amount de­ United States, any public debt obliga­ deemed necessary by the Commissioner. termined as the tax by the donor, or any tions of the United States, or any bonds, It is, therefore, the duty of the donor part thereof, upon the due date will re­ notes, or other obligations which are un­ to furnish upon request copies of all doc­ sult in undue hardship to the donor, the conditionally guaranteed as to both in­ uments relating to his gift or gifts, ap­ Commissioner, at the request of the terest and principal by the United States, praisal lists of any items included in the donor, may grant an extension of time equal in their total par value to the total amount of gifts, copies of balance for the payment for a period not to ex­ amount of such bond. (See section 1126 sheets, or other financial statements re­ ceed six months. The extension will hot of the Revenue Act of 1926, as amended lating to the value of stock constituting be granted upon a general statement of by section 7 of the Act of February 4, the gift, and any other information ob­ hardship. The term “undue hardship” 1935, 49 Stat. 22, 6 U.S.C. 15.) tainable by him that may be found nec­ means more than an inconvenience to The amount for which an extension essary in the determination of the tax. the donor. It must appear that sub­ is granted, with the additions thereto, (See § 86.19.) For every policy of life stantial financial loss, for example, due shall be paid on or before the expiration insurance listed on the return, the donor to the sale of property at a sacrifice price, of the period of the extension without must procure a statement from the in­ -will result to the donor from making the necessity of notice and demand from surance company on Form 938, in ac­ payment of the amount at the due date. the collector. Payment of the amount cordance with instructions printed If a market exists, the sale of property for which the extension was granted and thereon, and file it with the collector at the current market price is not ordi­ the additions thereto before the expira­ who receives the return, If specifically narily considered as resulting in undue tion of the extension will not relieve the requested by the Commissioner, the in­ hardship. An application for an exten­ donor from paying the entire amount surance company shall file this statement sion of time for the payment of such of interest provided for in the extension. direct with the Bureau. tax should be made under oath and must be accompanied or supported by § 86.30 Voluntary advance payment. § 86.27 Recognition of attorneys and evidence showing the undue hardship The gift tax may be paid at the election other persons representing taxpayers. that would result to the donor if the of the donor prior to the date prescribed For regulations governing the recogni­ extension were refused. A sworn state­ for its payment, that is, prior to the 15th tion of attorneys, agents, and other per­ ment of assets and liabilities of the day of March following the close of the sons representing claimants before the calendar year in which the gift or gifts Treasury Department, reference should donor and an itemized statement under oath showing all receipts and disburse­ were made. No discount will be allowed be made to Treasury Department Circu­ for payment in advance of the due date. lar No. 230, as revised, copies of which ments for each of the three months im­ may be obtained upon application to the mediately preceding the month in which § 86.31 When fractional part of cent secretary of the Committee on Practice, falls the date prescribed for the pay­ may he disregarded. In the payment of Treasury Department, Washington, D. C. ment of the tax are required and should tax a fractional part of a cent shall be If an attorney or other person asks a accompany the application. The appli­ disregarded, unless it amounts to one- ruling on a question of law arising in a cation, with the evidence, must be filed half cent or more, in which case it shall specific case, the Commissioner will re­ with the collector, who will transmit it be increased to 1 cent. A fractional part quire satisfactory evidence of the right of a cent should not be disregarded in to the Commissioner with his recom­ the computation of the tax. to obtain such ruling. The transaction mendations as to#the extension. When on which the ruling is sought must be it is received by* the Commissioner, it § 86.32 Receipts for taxes. Upon re­ completed and not merely proposed or will be examined and, if possible, within quest the collector will give a receipt for planned. Hypothetical questions cannot tax payments. In the case of payments be answered. 30 days will be denied, granted, or ten­ tatively granted subject to certain con­ made by check or money order, the can­ Sec. 1008. P ayment op tax. ditions of which the donor will be celed check or the money order receipt (a) Time of payment. The tax imposed by is usually a sufficient receipt. In case of this chapter shall be paid by the donor on notified. The Commissioner will not payments in cash, however, it might be or before the 15th day of March following the consider an application for such an ex­ to the donor’s interest to require the close of the calendar year. tension unless request therefor is made (b) Extension of time for payment. At the collector to furnish a receipt. request of the donor, the Commissioner may to the collector on or before' the due extend the tinie for payment of the amount date. If the donor desires to obtain an § 86.33 Payment by check. Collectors determined as the tax by the donor, for- a additional extension, the request there­ may accept uncertified checks in the period not to exceed six months from the for must be made to the collector on or payment of the tax, provided such No. 154----- 3 10872 FEDERAL REGISTER, Thursday, A ugust 5, 1943

checks are collectible at par—that is, for extent of the value of such gift attaches Sec. 1010. Examination op return and de­ the full amount without any deduction to all the property of the donee, includ­ termination op TAX. for exchange or other charges. The day ing after-acquired property, except any As soon as practicable after the return is on which the check is received will be part sold to a bona fide purchaser for an filed the Commissioner shall examine it and considered the date of payment so far adequate and full consideration in money shall determine the correct amount of the as the taxpayer is concerned unless the or money’s worth. tax. check is uncollectible. § 86.37 Examination of return and de­ All expenses incident to the attempt to - § 86.36 Release of lien. The statute termination of tax by the Commissioner. . collect unhonored checks and their re­ provides that, if the Commissioner is As soon as practicable after returns are turn through the depositary bank must satisfied that the tax liability has been filed, they will be examined and the be paid by the drawer of the check to the fully discharged or provided for, he may amount of tax determined under such bank on which it is drawn. (See section issue his certificate releasing any or all procedure as may be prescribed from 3971.) If a check' has been returned property from the lien imposed thereon. time to time by the Commissioner. (See uncollected by the depositary bank, the The issuance of certificates releasing section 1012 and § 86.39.) collector should proceed to collect the such lien is a matter resting within the tax as though no check had been given, discretion of the Commissioner, and cer­ Sec. 1011. De f in itio n of deficiency. tificates will be issued only in case there As used in this chapter in respect of the and the taxpayer will remain liable for tax imposed by this chapter the term “de­ payment of the tax and for all interest, is actual need therefor. The primst!ry ficiency” means— legal penalties, and additions, if any at­ purpose of such release is not to evidence (1) The amount by which the tax imposed tach, to the same extent as though such payment or satisfaction of the tax but by this chapter exceeds the amount shown check had not been tendered. A tax­ to permit transfer of property free from as the tax by the donor upon his return; but payer who tenders a certified check in the lien in case it is necessary to clear the amount so shown on the return shall first payment of taxes is not released from title. Receipts for payment of tax are* be increased by the amounts previously as­ issued by the collector. (See § 86.32.) sessed (or collected without assessment) as his obligation until the check has been a deficiency, and decreased by the amounts paid. (See section 3656.) If the tax liability has been fully dis­ previously abated, refunded, or otherwise re­ charged, or its discharge provided for paid in respect of such tax; or § 86.34 Donor iiable for tax. The to the satisfaction of the Commissioner (2) If no amount is shown as the tax by statute provides that the donor shall pay by the applicant for the release of lien the donor upon his return, or if no return is the tax. If the donor dies before the filing with the collector a surety bond, a made by the donor, then the amount by tax is paid, his executor or administrator certificate may then be issued releasing which the tax exceeds the amounts previ­ shall make payment thereof to the col­ any or all property from the lien imposed ously assessed (or collected without assess­ lector. If there is no duly qualified ex­ thereon. The tax will be considered fully ment) as a deficiency; but such amounts pre­ ecutor or administrator, the heirs, leg­ viously assessed, or collected without assess­ discharged only when the return has ment, shall first be decreased by the amounts atees, devisees, and distributees are liable been examined and payment of the tax, previously abated, refunded, or otherwise re­ for and required to pay the tax to the including any deficiency determined to paid in respect of such tax. extent of the value of their inheritance, be due, has been made. If the tax lia­ bequest, devise, or distributive share of bility has not been fully discharged, or § 86.38 Deficiency defined. Section the donor’s estate. As to the personal provided for as above stated, no general 1011, by its definition of the word “de­ liability of the donee, see § 86.35, and release will be granted, but certificates ficiency,” provides a term which will as to that of the executor or administra­ releasing the lien on particular items of apply to any amount of tax determined tor, see § 86.70. property may be issued by the Commis­ to be due in excess of the amount of tax reported by the donor upon his return; Sec. 1009. Lie n for tax. sioner, who may require as a prerequisite, The tax imposed by this chapter shall be a in such amount as he may designate, a or in excess of the amount reported by lien upon all gifts made during the calendar partial payment of the tax, or a surety vthe donor after adjustment made for year, for ten years from thè time the gifts are bond. As to the character of surety prior assessments, abatements, credits, made. If the tax is not paid when due, the refunds, or collections without assess­ donee of any gift shall be personally liable for bonds required, see § 86.29. In lieu of a ment. In defining the term “deficiency” such tax to the extent of the value of such surety bond, the taxpayer may file a section 1011 recognizes two classes of gift. Any part of the property comprised in bond secured by the deposit of bonds or cases—one, where the taxpayer makes a the gift sold by the donee to a bona fide notes of the United States, any public purchaser for an adequate and full considera­ debt obligations of the United States, or return showing some tax liability; the tion in money or money’s worth shall be di­ any bonds, notes, or other obligations other, where the taxpayer makes a re­ vested of the lien herein imposed and the which are unconditionally guaranteed as turn showing no tax liability, or where lien, to the extent.of the value of such gift, to both interest and principal by the the taxpayer fails to make a return. shall attach to all the property of the donee United States, equal in their total par Additional tax shown on any so-called (including after-acquired property) except “amended return” is a deficiency within any part sold to a bona fide purchaser for an value to the amount of such bond. (See section 1126 of the Revenue Act of 1926, the meaning of the statute. adequate and full consideration in money or When a donor’s taxability is consid­ money’s worth. If the Commissioner is sat­ as amended by section 7 of the Act of isfied that the tax liability has been fully February 4,1935, 49 Stat. 22, 6 U.S.C. 15.) ered for the first time, the deficiency is discharged or provided for, he may, under reg­ The application for a release should be the excess of the amount determined to ulations prescribed by him with the approval filed with the Commissioner, should ex­ be the correct amount of tax over the of the Secretary, issue his certificate, releas­ amount shown as the tax by the donor ing any or all of the property from the lien plain the circumstances that require the on his return, or, if no tax was reported herein imposed. release, and should fully describe the by the donor, the deficiency is the particular items for which the release amount determined to be the correct § 86.35 Lien for tax. A lien attaches is desired. If the application is made amount of tax. Subsequent information upon all gifts made during the calendar prior to the filing of the return for gift sometimes discloses that the amount year for the amount of the tax imposed tax, an affidavit may be required show­ previously determined to be the correct upon the gifts made during such year. ing the value of the property to be re­ amount of tax is less than the correct The lien extends for a period of 10 years leased from the lien, the basis for such amount, and that a redetermination of from the time the gifts were made, unless valuation, the total amount of gifts made the tax is necessary. In such a case, the the tax is sooner paid. If the tax is not during the calendar year and the prior deficiency on redetermination is the ex­ paid when due, the donee of any gift be­ calendar years subsequent to the enact­ cess of the amount determined to be the comes personally liable for the tax to the ment of the Revenue Act of 1932, the correct ¿mount of tax over the sum of extent of the value of his gift. Any part approximate value of all real estate upon the amount of tax reported by the donor of property which was the subject of which the lien has attached, and, in case and the deficiency assessed in connec­ a gift, sold by the donee to a bona fide the property is to be sold or otherwise tion with the previous determination. purchaser for an adequate and full con­ transferred, the name and address of If it is a case where no tax was reported the purchaser or transferee and the by the donor, the deficiency is the excess sideration in money or money’s worth, is consideration, if any, paid or to be paid divested of the lien, but a like lien to the of the amount determined to be the . by him. correct amount of tax over the amount FEDERAL REGISTER, Thursday, A ugust 5, 1943 10873

serted by the Commissioner at or before the donor outside the States of the Union and of deficiency assessed in connection with hearing or a rehearing. the District of Columbia, the period specified the previous determination. If the (f) Further deficiency letters restricted. in this paragraph shall be one hundred and previous determination resulted in a If the Commissioner has maiied to the donor fifty days in lieu of ninety days.” credit or refund to the taxpayer, the notice of a deficiency as provided in subsec­ (b) Effective date. The amendment made tion (a) of this section, and the donor files by this section shall be applicable with re-, deficiency upon the second determina­ a petition with the Board within the time spect to notices of deficiency mailed after the tion is the excess of the amount de­ prescribed in such subsection, the Commis­ date of the enactment of this Act. termined to be the correct amount of sioner shall have no right to determine any Sec. 504. Change of name of Board of T ax tax over the amount of tax reported by additional deficiency in respect of the same A p p e a l s . [Revenue Act of 1942, enacted Oc­ the donor decreased by the amount of calendar year, except in the case of fraud, tober 21, 1942.] and except as provided in subsection (e) (a) The Tax Court of the United States. the credit or refund. of this section, relating to assertion of greater Effective on the day after the date of enact­ Sec. 1012. Assessment a n d collection of deficiencies before the Board, or in section ment of this Act, section 1100 (relating to deficiencies. [As originally enacted.] 1013 (c), relating to the making of jeopardy status of Beard of Tax Appeals) is amended (a) (1) Petition to Board of Tax Appeals. assessments. If the donor is notified that, by inserting at the end thereof the following If the Commissioner determines that there on account of a mathematical error appear­ new sentence: “The Board shall be known as is a deficiency in respect of the tax imposed ing upon the face of the return, an amount The Tax Court of the United States and the hy this chapter, the Commissioner is au­ of tax in excess of that shown upon the members thereof shall be known as the pre­ thorized to send notice of such deficiency to return is due, and that an assessment of the siding judge and the judges of The Tax Court the donor by registered mail. Within 90 days tax has been or will be made on the basis of of the United States.” after such notice is mailed (not counting what would have been the correct amount (b) Powers, tenure, etc., unchanged. The Sunday or a legal holiday in the District of of tax but for the mathematical error, such jurisdiction, ppwers, and duties of The Tax Columbia as the ninetieth day), the donor notice shall not be considered (for the pur­ Court of the United States, its divisions and may file a petition with the Board of Tax poses of this subsection, or of subsection (a) its officers and employees, and their appoint­ Appeals for a redetermination of the de­ of this section, prohibiting assessment and ment, including the designation of its officers, ficiency. No assessment of a deficiency in collection until notice of deficiency has been and the immunities, tenure of office, powers, respect of the tax imposed by this" chapter and mailed, or of section 1027 (c), prohibiting duties, rights, and privileges of the presiding no distraint or proceeding in court for its credits or refunds after petition to the Board judge and judges of The Tax Court of the collection shall be made, begun, or prosecuted of Tax Appeals) as a notice of a deficiency, United States shall be the same as by existing until such notice has been mailed to the and the donor shall have no right to file law provided in the case of the Board of Tax donor, nor until the expiration of such 90-day a petition with the Board based on such Appeals. The Commissioner shall continue period, nor, if a petition has been filed with notice, nor shall such assessment or collec­ to be represented by the same counsel in the the Board, until the decision of the Board tion be prohibited by the provisions of sub­ same manner before the Court as he has has become final. Notwithstanding the pro­ section (a) of this section. heretofore been' represented in proceedings visions of section 3653 (a) the making of (g) Jurisdiction over other calendar years. before the Board of Tax Appeals and the tax­ such assessment or the beginning of such The Board in redetermining a deficiency in payer shall continue to be represented in ac­ proceeding or distraint during the time such respect of any calendar year shall consider cordance with rules of practice prescribed by prohibition is in force may be enjoined by a such facts with relation to the taxes fdr the Court. No qualified person shall be de­ proceeding in the proper court. other calendar yéars as may be necessary nied admission to practice before such Court (2) Cross references. For exceptions to correctly to redetermine the amount of such because of his failure to be a member of the restrictions imposed by this subsection deficiency, but in so doing shall have no any profession or calling. see— jurisdiction to determine whether or not (c) References. All references in any stat­ - Subsection (d) of this section, relating to the tax for any other calendar year has been ute (except this section), or in any rule, regu­ waivers by the donor; overpaid or underpaid. lation, pr order, to the “Board of Tax Appeals ’ Subsection "(f) of this section, relating to (h) Final decisions of Board. For the pur­ or to the “Board” when used ii* the sense notifications of mathematical errors appear­ posed of this chapter the date on which a of “Board of Tax Appeals”, or to the “mem­ ing upon the face of the return; decision of the Board becomes final shall ber”, “members”, or “chairman” thereof shall Section 1013, relating to jeopardy assess­ be determined according to the provisions of be considered to be made to The Tax Court ments; - section 1140. of the United States, the judge, judges, and Section 1015, relating to bankruptcy and (i) Extension of time for payment of de­ presiding Judge thereof, respectively. receiverships; and ficiencies. Where it is shown to the satisfac­ § 86.39 Assessment of deficiency. If Section 1145, relating to assessment or col­ tion of the Commissioner that the payment of lection of the*amount of the deficiency deter­ a deficiency upon the date prescribed for the the Commissioner determines that there mined by the Board pending court review. payment thereof will result in undue hard­ is a deficiency in respect of the tax he (b) Collection of deficiency found by board. ship to the donor the Commissioner, under is authorized to notify the donor of the If the donor files a petition with the Board, regulations prescribed by the Commissioner, deficiency by registered mail. In the the entire amount redetermined as the de­ with the approval of the Secretary (except absence of notice to the Commissioner ficiency by the decision of the Board which where the deficiency is due to negligence, to under section 1026 (a) of the existence has become final shall be assessed and shall intentional disregard of rules and regula­ of a fiduciary relationship, the Commis­ be paid upon notice and demand from the tions, or to fraud with intent to evade tax), collector. No part of the amount determined may grant an extension for the payment of sioner is authorized to mail the notice of as a deficiency by the Commissioner but dis­ such deficiency or any part thereof for a a deficiency to the donor at his last allowed as such by the decision of the Board period not in excess of eighteen months, and, known address, and such notice is suffi­ which has become final shall be assessed or in exceptional cases, for a further period not cient even if the donor .is deceased or is be collected by distraint or by proceeding in excess of twelve months. If an extension under a legal disability. Within 90 days in court with or without assessment. ) is granted, the Commissioner may require after the notice of deficiency is mailed (c) Failure to file petition. If the donor the donor to furnish a bond in such amount, (or within 150 days after the notice of de­ does not file a petition with the Board within not exceeding double the amount of the de­ ficiency is mailed in case such notice is the time prescribed in subsection (a) the ficiency, and with such sureties, as the Com­ deficiency, notice of which has been mailed missioner deems necessary, conditioned upon mailed after October 21, 1942, addressed to the donor, shall be assessed, and shall be the payment of the deficiency in accordance to a donor outside the States of the paid upon notice and demand from the with the terms of the extension. Union and tha District of Columbia), a collector. (j) Address for notice of deficiency. In the petition may be filed with The Tax Court (d) Waiver of restrictions. The donor absence of notice to the Commissioner under of the United States (formerly known as shall at any time have the right, by a signed section 1026 (a) of the existence of a fiduci­ the Board of Tax Appeals) for a rede­ notice in writing filed with the Commis­ ary relationship, notice of a deficiency in termination of the deficiency. In de­ sioner, to waive the restrictions provided in respect of a tax imposed by this chapter, if termining such prescribed period, Sun­ subsection (a) on the assessment and col­ mailed to the donor at his last known ad­ lection of the whole or any part of the dress, shall be sufficient for the purposes of day or a legal holiday in the District of deficiency. this chapter even if such donor is deceased, Columbia is not to be counted as the last (e) Increase of deficiency after notice or is under a legal disability.. day thereof. Except as stated in para- mailed. The Board shall have Jurisdiction Sec. 456. P eriod for filin g petition ex­ graphs (a), (b), (c), (d), and (e) of this to redetermine the correct amount of the tended in certain cases. [Revenue Act of section, no assessment of deficiency in deficiency even if the amount so redeter­ 1942, enacted October 21, 1942.] respect of the tax shall be made until mined is greater than the amount of the (a) Period extended. Section 1012 (a) (1) such notice has been mailed to the donor, deficiency, notice of which has been mailed (relating to period of filing petition with nor until the expiration of the period to the donor, and to determine whether any Board of Tax Appeals) is amended by insert­ ing at the end thereof the following new prescribed for the filing of a petition additional amount of addition to the tax with The Tax Court, nor, if a petition should be assessed, if claim therefor is as- sentence: “If the notice is addressed to a 10874 FEDERAL REGISTER, Thursday, A ugust 5, 1943

has been filed, until the decision of The If the Commissioner files a petition for ships, ang deficiencies determined by - Tax Court has become final. As to the review and the donor has not filed a pe­ The Tax Court pending court review, see date on which a decision of The Tax tition for review within three months §§ 86.43, 86.45, and 86.39 (e). As to in- Court becomes final, see sections 1140 and after the decision of The Tax Court is • terest on deficiencies, see section 1021 1142. rendered, the amount determined by The and § 86.53. (a) The donor may, at any time, by a Tax Court as a deficiency will be assessed signed notice in writing filed with the immediately after the expiration of the § 86.42 Extension of time for pay­ Commissioner, waive the restrictions on 3-month period. If the Commissioner ment of deficiencies. If it is shown to the assessment of the whole or any part files a petition for review, and a similar the satisfaction of the Commissioner of the deficiency. The notice must in all petition is filed by the donor, but the that the payment of a deficiency upon cases be filed with the Commissioner. bond required by section 1145 has not the date prescribed for payment thereof The filing of such notice with The Tax been filed with The Tax Court, the de­ would result in undue hardship to the Court does not constitute filing with the ficiency will be assessed immediately donor, the Commissioner may grant an Commissioner within the meaning of the after the filing of the petition for review extension of time for the payment of the statute. After such waiver has been by the donor. deficiency or any part thereof for a pe­ acted upon by the Commissioner and the If no petition is filed with The Tax riod of time not in excess of 18 months assessment has been made in accordance Court within the period prescribed, the and in exceptional cases for a further with its terms, the waiver ' cannot be Commissioner shall assess the amount period not in excess of 12 months. The withdrawn. After a waiver of the re­ determined by him as the deficiency and extension will not be granted upon a strictions on the assessment of the de­ of which he has notified the donor by general statement of hardship. The ficiency has been filed, there will be as­ registered mail. In such case, the Com­ term “jundue hardship” means more than sessed at the same time as the assess­ missioner foill not be precluded from de­ an inconvenience to the donor. It must ment made in accordance with the terms termining a further deficiency and appear that substantial financial loss, of the waiver interest upon the tax so notifying the donor thereof by regis­ for example, due to the sale of property assessed at the rate of 6 percent per an­ tered mail. In case a petition is filed at ^ sacrifice price, will result to the num from the due date of the tax to the with The Tax Court, the entire amount donor from making payment of the de­ thirtieth day after the filing of such redetermined as the deficiency by the ficiency at the date prescribed for pay­ waiver or to the date the deficiency is decision of The Tax Court which has be­ ment. If a market exists, the sale of assessed, whichever is the earlier. (See come final shall be assessed by the Com­ property at the current market price is section 1021 and § 86.53.) missioner. If the Commissioner mails to not ordinarily considered as resulting in (b) If a donor is notified of an addi­ the donor notice of a deficiency and the undue hardship. The statute provides tional amount of tax due on account donor files a petition with The Tax Court that no extension will be granted where of a mathematical error appearing upon within the period prescribed, the Com­ the deficiency is due to negligence or the face of his return, such notice is not missioner is barred from determining intentional disregard of rules and regu­ a notice of deficiency prescribed by sec­ any additional deficiency for tfie same lations or to fraud with intent to evade tion 1012 (a) and the donor has no taxable year except in the ease of fraud tax. right to file a petition with The Tax and except as provided in section 1012(e), An application for an extension of time Court upon the basis of such notice, nor relating to the assertion of greater defi­ for the payment of the deficiency should is the assessment of such additional tax ciencies before The Tax Court, or be made under oath and must be accom­ prohibited by the provisions of section in section 1013, relating to jeopardy panied or supported by evidence showing 1012 (a) assessments. (See § 86.43.) the undue hardship that would result to (c) If the Commissioner believes that the donor if the extension were refused. the assessment or collection of a de­ § 86.40 Waiver by donor of restric­ A sworn statement of assets and liabili­ ficiency will be jeopardized by delay, tions on Assessment. If the donor ac­ ties of the donor and an itemized state­ such deficiency shall be assessed imme­ quiesces in any proposed, tentative, or ment under oath showing all receipts and diately as provided in section 1013. (See final determination of the whole or any disbursements for each of the three § 86.43.) part of the deficiency, the donor has the months immediately preceding the (d) Upon the adjudication of bank­ right by a signed notice in writing filed month in which falls the date prescribed ruptcy of a donor in any bankruptcy with the Commissioner to waive the re­ for the payment of the deficiency are re- ... proceeding or the appointment of a re­ strictions on the assessment and collec­ quired and should accompany the appli­ ceiver for a donor in any receivership tion of such whole or part of the defi­ cation. The application, with the evi­ proceedings before any court of the ciency under the provisions of section dence, must be filed with the collector, United States or of any State or Terri­ 1012 (d). A form of notice of such waiver who will transmit it to the Commissioner tory or of the District of Columbia, any for filing with the Commissioner will be with his recommendation as to the ex­ deficiency determined by the Commis­ supplied the donor upon notice of any tension. When it is received by the Com­ sioner in respect of the tax shall be as­ proposed, tentative, or final determina­ missioner, it will be examined and, if sessed immediately irrespective of the tion of a deficiency. Piling of the notice possible, within 30 days will be denied, provisions of section 1012 (a) if such of waiver will expedite assessment and granted, or tentatively granted subject deficiency has not been assessed in ac­ stop the accrual of interest on the amount to certain conditions of which the donor cordance with the law prior to the assessed until after notice and demand will be notified. The Commissioner will adjudication of bankruptcy or the ap­ by the collector. As to interest on defi­ not consider an application for an ex­ pointment of the receiver. (See section ciencies, see section 1021 and § 86.53. tension of time for the payment of a 1015 and § 86.45.) § 86.41 Collection of deficiency. If a deficiency unless request therefor is (e) If The Tax Court renders a deci­ deficiency as redetermined by a decision made to the collector on or before the sion and determines that there is a. de­ of The Tax Court which has become date prescribed for payment thereof, as ficiency, and, if the donor duly files a final is assessed, or the donor has not shown by the notice and demand from petition for review of the decision by a filed a petition with The Tax Court and the collector. If the donor desires to Circuit Court of Appeals (or the United the deficiency as determined by the obtain an additional extension, the re­ States Court of Appeals for the District Commissioner has been assessed, or the quest therefor must be made to the col­ of Columbia), the filing of the petition restrictions upon the assessment and col­ lector on or before the date of the expira­ will not operate as a stay of the assess­ lection of the whole or any part of the tion of the previous extension. ment of any portion of the deficiency deficiency provided in subsection (a) As a condition to the granting of such determined by The Tax Court, unless of section 1012 have heen waived and an an extension, the Commissioner will usu­ the donor has filed a bond with The assessment made in accordance with ally require the donor to furnish a bond Tax Court as provided in section 1145. such waiver, the amount so assessed shall in an amount not exceeding double the If, in such a case, the necessary bond be paid upon notice and demand from amount of the deficiency, or to furnish has not been filed by the donor, the the collector. As to deficiencies coming amount determined by The Tax Court other security satisfactory to the Com­ within the provisions of sections 1013, missioner for the payment of the liabil­ as a deficiency will be assessed imme­ 1015, and 1145, relating to jeopardy as­ diately after the filing of such petition. ity on or before the date prescribed for sessments, bankruptcies and receiver- the payment in the extension, so that the 10875 FEDERAL REGISTER, Thursday, A ugust 5, 1943

after the donor has filed a petition for review termined by Thè Tax Court. The Com- * risk of loss to the Government will not of the decision of the Board. missioner is prohibited from making a be more at the end of the extension pe­ (f) Bond to stay collection. When a jeop­ jeopardy assessment after a decision of riod than it was at the beginning of the ardy assessment has been made the donor, The Tax Court has become final (see sec­ period. If a bond is required it shall be within 10 days after notice and demand from tion 1140) or after the donor has filed_ a conditioned upon the payment of the the collector for the payment of the amount petition for review of the decision of The deficiency, interest, and additional of the assessment, may obtain a stay of col­ Tax Court. amounts assessed in connection there­ lection of the whole or any part o t the amount of the assessment by filing with the If notice of a deficiency was mailed with in accordance with the terms of the collector a bond in such amount, not exceed­ to the donor (see section 1012 (a) and extension granted, and shall be executed ing double the amount as to which the stay § 86.39) before it was discovered that by a surety company holding a certificate is desired, and with such sureties, as the col­ delay would jeopardize the assessment of authority from the Secretary of the lector deems necessary, conditioned upon the or collection of the tax, a jeopardy as­ Treasury as an acceptable surety on Fed­ payment of so much of the amount, the col­ sessment may be made in an amount eral bonds, and shall be subject to the lection of which is stayed by the bond, as is greater or less than that included in the approval of the Commissioner. In lieu not abated by a decision of the Board which has become 'final, together with interest deficiency notice. On the other hand if of such a bond, the donor may file a bond thereon as provided in section 1022 or 1023 the assessment on account of jeopardy secured by the deposit of bonds or notes (b) (4) If any portion of the jeopardy as­ was made without mailing the notice re­ of the United States, any public debt sessment is abated by the Commissioner be­ quired by section 1012 (a), the Commis­ obligations of the United States, or any fore the decision of the Board is rendered, sioner must wfthin 60 days after the bonds, notes, or other obligations which the bond shall, at the request of the taxT making of the assessment send the donor are unconditionally guaranteed as to payer, be proportionately reduced. notice of the deficiency by registered both interest and principal by the United (g) Same—Further conditions. If the mail. The donor may file a petition States, equal in their total par value to bond is given before the donor has filed his with The Tax Court for a rèdetermina- the amount of such bond. (See section petition with the Board under section 1012 (a) the bond shall contain a further condi­ tion of the amount of the deficiency 1126 of the Revenue Act of 1926, as tion that if a petition is not filed within the within 90 days after such notice is amended by section 7 of the Act of Feb- period provided in such subsection, then the mailed (or within 150 days after mailing ' ruary 4, 1935, 49 Stat. 22, 6 U.S.C. 15.) amount the collection of which is stayed by in case such notice is mailed after Oc­ The amount for which an extension is the bond will be paid on notice and demand tober 21,1942, addressed to a donor out­ granted, with the additions thereto, shall at any time after the expiration of such side the States of the Union and the be paid on or before the expiration of the period, together with interest thereon' at the District of Columbia), and in determin­ period of the extension without the rate of 6 per centum per annum from the ing such prescribed period Sunday or necessity of notice and demand from the date of the jeopardy notice and demand to a legal holiday in the District of Coliun- collector. Payment of the amount for the date of notice and demand under this subsection. bia is not to be counted as the last day which the extension was granted and the (h) Waiver of stay. Upon the filing of the thereof. If the petition of the donor additions thereto before the expiration bond the collection of so much of the amount is filed with The Tax Court, either be­ of the extension will not relieve the donor assessed as is covered by the bond shall be fore or after the making of the jeopardy from paying the entire amount of inter­ stayed. The donor shall have the right to assessment, the Commissioner is re­ est provided for in the extension. waive such stay at any time in respect of the quired to notify The Tax Court of such whole or any part of the amount covered by assessment, and The Tax Court has Sec. 1013. J eopardy assessments. the bond, and if as a result of such waiver (a) Authority for making. If the Com­ any part of the amount covered by the bond jurisdiction to redetermine the amount missioner believes that the assessment or col­ is paid, then the bond shall, at the request of the deficiency together with all other lection of a deficiency will be jeopardized by of the donor, be proportionately reduced. If amounts assessed at the same time m delay, he shall immediately assess such de­ connection therewith. If the jeopardy ficiency (together with all interest, additional the Board determines that the amount as­ amounts, or additions to the tax^ Provided sessed is greater than the amount which assessment is made, the Commissioner for by law) and notice and demand shall be should have been assessed, then when the may, at any time before the decision of decision of the Board is rendered the bond The Tax Court is rendered, abate the made* by the collector for the payment shall, at the request of the donor, be pro­ tliBrsofi assessment or any unpaid Portion (b) Deficiency letters. If the jeopardy as­ portionately reduced. thereof, to the extent that he believes sessment is made before any notice in respect (1) Collection of unpaid amounts. When it to be excessive in amount. (See sec­ of the tax to which the Jeopardy assessment the petition has been filed with the Board relates has been mailed under section 1012 and when the amount which should have tion 1013 (c).) (a), then the Commissioner shall mail a been assessed has been determined by a deci­ After a jeopardy assessment has been notice under such subsection within 60 days sion of the Board which has become final, then made, the list showing such assessment after the making of the assessment. any unpaid portion, the collection of which will be immediately transmitted to the (c) Amount assessable before decision of has been stayed by the bond, shall be col­ collector. Upon receipt of the list con­ Board. The jeopardy assessment may be lected as part of the tax upon notice and de­ taining the assessment, the collector is made in respect of a deficiency grater or mand from the collector, and any remaining portion of the assessment shall be abated. If ' required to send notice and demand to less than that notice of which has been the donor for the ainount of the jeopardy mailed to the donor, despite the provisions of the amount already collected exceeds the section 1012 (f) prohibiting tke determi­ amount determined as the amount which assessment. Regardless of whether the nation of additional deficiencies, and whether should have been assessed, such excess shall donor has filed a petition with The Tax or not the donor has theretofore filed a peti­ be credited or refunded as provided in sec­ Court, he is required to make payment ot tion with the Board of Tax Appeals. The tion 1027, without the filing of claim there- the amount of such assessment within 10 Commissioner may, at any time before the ' for. If the amount determined as the amount days after the sending of notice and de­ decision of the Board is rendered, abate such which should have been assessed is greater than the amount actually assessed, then the mand by the collector, unless before the assessment, or any unpaid portion thereof, to expiration of such 10-day period he files the extent that he believes the assessment difference shall be assessed and shall be col­ to be excessive in amount. The Commis­ lected as part of the tax upon notice and with the collector a bond of the char­ sioner shall notify the Board of the amount demand from the collector. acter hereinafter prescribed. The bond of such assessment, or abatement, if the peti­ § 86.43 Jeopardy assessments. If the must be in such amount, not exceeding tion is filed with the Board before the making Commissioner believes that the assess­ double the amount for which the stay is of the assessment or is subsequently filed, desired, as the collector deems necessary and the Board shall have Jurisdiction to rede­ ment or collection of a deficiency will be and must be executed by sureties satis­ termine the entire amount of the deficiency jeopardized by delay, he is required to and of all amounts assessed at the same time assess such deficiency immediately, to­ factory to the collector. In lieu of a in connection therewith. . . . . gether with the interest and other addi­ surety bond, the taxpayer may file a (d) Amount assessable after decision of tional amounts provided by law. If a bond secured by the deposit of bonds or Board. If the jeopardy assessment is made deficiency is assessed on account of jeop­ notes of the United States, any public after the decision of the Board is rendered ardy after the decision of The Tax Court debt obligations of the United States, or such assessment may be made only in respect any bonds, notes, or other obligations of the deficiency-determined by the Board of the United States (formerly known as which are unconditionally guaranteed as in its decision. * the Board of Tax Appeals) is rendered, (e) Expiration of right to assess. A jeop­ the Jeopardy assessment may be made to both interest and principal by the ardy assessment may not be made after the United States, equal in their total par decision of the Board has become final or only with respect to the deficiency de- 10876 FEDERAL REGISTER, Thursday, A ugust 5, 1943

value to the amount of such bond. (See in section 1021, will be assessed, and in which such proceeding is pending, section 1126 of the Revenue Act of 1926, ■collected as part of the tax upon notice and the collection of taxes cannot be as amended by section 7 of the Act of and demand from the collector. If the made by distraining upon such assets. February 4,1935, 49 Stat. 22, 6 U.S.C. 15.) amount included in the notice and de­ However, any assets which under appli­ The bond must be conditioned upon the mand made after the decision of The cable provisions of law are not under the payment of so much of the amount, the Tax Court is not paid within 10 days control of the court may be subject to. collection of which is to be stayed by the after such notice and demand, there distraint. bond, as is not abated by a decision of shall be collected, as part of the tax, As used in these regulations the term The Tax Court which has become final, interest as provided in section 1023. “bankruptcy proceeding” includes pro­ together with the interest on such (See § 86.55.) If the amount of the ceedings under Chapters I to VII of the amount as may accrue under section jeopardy assessment is in excess of the Bankruptcy Act, as amended, or under * 1022 and section 1023 (b) (4). If the amount determined by The Tax Court, section 75 (11 U.S.C. 203), or Chapters bond is given before the donor has filed the unpaid portion of such excess will XT to XIII, of such Act, as amended; his petition with The Tax Court, it must be abated. If any part of the excess and the terqj “adjudication of bank­ contain a further condition that if a pe­ amount has been paid, it will be cred­ ruptcy” includes an adjudication in a tition is not filed before the expiration ited or refunded to the donor as pro­ proceeding under Chapters I to VII, as of the period provided for the filing of vided in section 1027. (See §§ 86.60- amended, and the filing of a petition such petition, the amount stayed by the 86.63.) under section 75 or Chapters XI to XEtl bond will be paid upon notice and de­ As to bankruptcy and receivership with a court of competent jurisdiction. mand at any time after the expiration cases, See sections 1015 and 1023 (b) (5) The clerk of a court of bankruptcy is of such period, together with interest and §§ 86.45 and 86.55. required to mail to the Commissioner of thereon at the rate of 6 percent per an­ Internal Revenue a certified copy of num from the date of the jeopardy no­ Sec. 1014. Claims in abatement. No claim in abatement shall be filed in every order of adjudication forthwith tice and demand to the date of the respect of any assessment in respect of any upon the entry thereof. In every such notice and demand made after the ex­ tax imposed by this chapter. piration of such period. If a petition is case, the court of bankruptcy is required not filed with The Tax Court within the § 86.44 Claims in abatement. Sec­ tu mail or cause to be mailed a copy of period prescribed for the filing of such tion 1014 prohibits the filing of claims the notice of the first meeting of cred­ petition, the collector will be so advised, for abatement by donors in respect of itors to the Commissioner of Internal and, if collection of the deficiency has any assessment of gift tax imposed by Revenue and to the collector of internal been stayed by the filing of a bond within the Internal Revenue Code. This pro­ revenue for the district in which the 10 days after the date of jeopardy notice vision does not prohibit the filing of court located. (See section 58 (e) of and demand, he should then give riotice claims in abatement by collectors. (See the Bankruptcy Act, 11 U.S.C. 94 (e).) and make demand for payment of the also § 86.62.) Collectors should, promptly after no­ amount assessed plus interest. Any bond tice of outstanding liability against a Sec. 1015. B ankruptcy and receiverships. donor in any bankrutcy or receivership filed after the expiration of 10 days from (a) Immediate assessment. Upon the ad­ proceeding, and in any event within the the date of the jeopardy notice and de­ judication of bankruptcy of any donor in any mand is not such a bond as is contem­ bankruptcy proceeding or the appointment time limited by the appropriate provi­ plated by section 1013 (f), although the of a receiver for any donor in any receiver­ sions of the Bankruptcy Act, as amended, collector may in his discretion accept ship proceeding before any court of the and the orders of the court in which the bond and stay collection of the de­ United States or of any State or Territory such proceeding is pending, file claim or of the District of Columbia, any deficiency covering such liability ip. the court in ficiency. If the Commissioner believes (together with all interest, additional which such proceeding is pending. Such that the amount of the jeopardy assess­ amounts, or additions to the tax provided claim should be filed whether the unpaid ment is excessive and abates a portion for by law) determined by the Commissioner taxes involved have been assessed or not, thereof before the decision of The Tax in respect of a tax imposed by this chapter Court is rendered, the amount of the upon such donor shall, despite the restric­ except in cases where the departmental bond will be proportionately reduced at tions imposed by section 1012 (a) upon instructions direct otherwise; for ex­ the request of the donor. «• assessments be immediately assessed if such ample, where the payment of the taxes deficiency has not theretofore been assessed is secured by a sufficient bond. Such Upon the filing of a bond of the char­ in accordance with law. Claims'for the de­ claim should cover the amount repre­ acter described within 10 days after the ficiency and such interest, additional date of notice and demand for payment sented by the assessment,-plus interest amounts and additions to the tax may be Eft the rate of 6 percent per annum for of the amount assessed, the collection of presented, for adjudication in accordance with the period from the date of filing claim so much thereof as is covered by the law, to the court before which the bank­ bond will be stayed. The donor may at ruptcy or receivership proceeding is pend­ by the collector to the date of termina­ any time waive the stay of collection o f. ing, despite the pendency of proceedings for tion of the bankruptcy or receivership the whole or any part of the amount the redetermination of the deficiency in pur­ proceeding or to the date of payment suance of a petition to the Board; but no if payment is made in full prior to such covered by the bond. If as a result of petition for any such redetermination shall termination. At the same time claim such waiver any part of the amount be filed with the Board after the adjudica­ is filed with the bankruptcy or receiver­ covered by the bond is paid, then the tion of bankruptcy or the appointment of ship court, the collector will send notice bond will at the request of the donor be the receiver. and demand for payment to the donor proportionately reduced. (b) Unpaid claims. Any portion of the together with a copy of such claim. After The Tax Court has rendered its claim allowed in such bankruptcy or re­ Under section 3466 of thé Revised decision and such decision has become ceivership proceeding which is unpaid shall be paid by the donor upon notice and de­ Statutes (31 U.S.C. 191) and section 3467 final, the collector will be notified of the mand from the collector after the termina­ of the Revised Statutes, as amended by action taken. The collector will then tion of such proceeding, and may be collected section 518 of the Revenue Act of 1934 send notice and demand for the unpaid by distraint or proceeding in court within (31 U.S.C. 192), and section 64 of the portion of the amount determined by six years after termination of such proceed­ Bankruptcy Act, as amended (11 U.S.C. The Tax Court, the collection of which ing. Extensions of time for such payment 104), taxes are entitled to the priority has been stayed by the bond. The col­ may be had in the same manner and sub­ over other claims therein stated and the lector is required to include in the notice ject to the same provisions and limitations as are provided in sections 1012 (i), 1020 (b), trustee, receiver, debtor in possession, and demand for the unpaid portion, and 1023 (b) (3) in the case of a deficiency or other person designated as in control interest at the rate of 6 percent per an­ in a tax imposed by this chapter. of the assets of the debtor by the court num from the date of the jeopardy notice in which bankruptcy or receivership pro­ and demand to the date of the notice § 86.45 Bankruptcy and receivership ceeding is pending, may be held person­ and demand referred to in this para­ proceedings. During a bankruptcy pro­ ally liable for failure on his part to graph. If rthe amount of the jeopardy ceeding, or an equity receivership pro- protect the priority of the Government assessment is less than the amount de­ ceeding in either a Federal or a State respecting taxes of which he has notice. termined by The Tax Court, the differ­ court, the assets of the donor are in Bankruptcy courts have jurisdiction ence, together with interest as provided general under the control of the court under the Bankruptcy Act, as amended, FEDERAL REGISTER, Thursday, A ugust 5, 1943 10877 § 86.48 Period of limitation upon col­ to determine all disputes regarding the action will be taken. A copy of the notification letter will be attached to the lection of tax. A proceeding in court amount and validity of taxes of a bank­ without assessment for the collection of rupt or of a debtor in a proceeding under assessment list as the collector’s author­ ity for filing claim in any bankruptcy or the tax must be begun within three years the Bankruptcy Act, as amended. A after the return was filed, except that if bankruptcy or receivership proceeding receivership proceeding. If any portion of the claim allowed by the donor files a false or fraudulent re­ for the donor does not discharge any turn with intent to evade tax or fails to portion of a claim of the United States the court in a bankruptcy or receivership proceeding remains unpaid after the file a return, a proceeding in court for for taxes except to the extent which may the collection of the tax may be begun at be provided in a plan or arrangement termination of such proceeding, the col­ duly effectuated in a bankruptcy pro­ lector will send notice and demand for any time. ceeding; and any portion of a claim of payment thereof to the donor. Such In any case in which the tax has been the United States for taxes which has unpaid portion with, interest as provided assessed within the statutory period of been allowed: by the court in which the in section 1023 (b) (5) may be collected limitation properly applicable thereto, bankruptcy or receivership proceeding from the donor by distraint or proceed­ a proceeding in court or distraint for the is pending and which remains unsatis­ ing in court within six years after the collection of such tax may be begun fied after the termination of the bank­ termination of the bankruptcy, debtor, within six years after the assessment ruptcy or receivership proceeding shall or receivership proceeding. Extensions thereof, or prior to the expiration of any be collected, with interest as provided in of time for the payment of such unpaid period for collection agreed upon in writ­ amount may be granted in the same ing by the Commissioner and the donor. section 1023 (b) (5).. manner and subject to the same pro­ In determining the running of the stat­ § 86.46 Immediate assessments in visions and limitations as provided in ute of limitations in respect of distraint, 'bankruptcy and receivership cases. If sections 1012 (i), 1020 (b), and 1023 the distraint shall be considered to have the Commissioner has determined that (b) (3). (See I 86.42.) been begun, in the case of personal prop­ a deficiency is due in respect of gift tax This section deals only with immedi­ erty, on the date on which the levy upon and the donor has filed a petition with ate assessments provided for in section such property is made, or, in the case of The Tax Court of the United States 1015 and the procedure in connection real property, on the date on which no­ (formery known as the Board of Tax with such assessments. tice of the time and place of sale is given Appeals) prior to the adjudication of to the person whose property it is pro­ bankruptcy or the appointment of a re­ Sec. 1016. P eriod of limitation upon as­ sessm ent AND COLLECTION. posed to sell. - • ceiver, the trustee, receiver, debtor in (a) General rule. Except as provided in See section 1017 and § 86.49 for provi­ possession, or other person designated subsection (b), the amount of taxes imposed sions relating to the suspension of the as in control of the assets of the debtor by this chapter shall be assessed within three running of the statute of limitations on by the court in which the bankruptcy or years after the return was filed, and no pro­ the beginning of distraint or a proceed­ receivership proceeding is pending, may ceeding in court without assessment for the ing in court for collection of the tax. prosecute the donor’s appeal before The collection of such taxes shall be begun after Tax Court as to that particular determi­ the expiration of three years after the return Sec. 1017. Suspen sio n of ru nn in g of was filed. STATUTE. _ ' nation. No petition shall be filed with (b) Exceptions— The running of the statute of limitations The Tax Court for a redetermination of (1) False return or no return. In the case provided in section 1016 on the making of the deficiency after the adjudication of of a false or fraudulent return with intent assessments and the beginning of distraint or bankruptcy or the appointment of a to evade tax or of a failure to file a return a proceeding in court for collection, in re­ receiver. the tax may be assessed, or a proceeding in spect of any deficiency, shall (after the mak­ Claim for the amount of a deficiency, court for the collection of such tax may be ing of a notice under section 1012 (a)) be begun without assessment, at any time. suspended for the period during which the even though pending before The Tax (2) Collection after assessment. Where Commissioner is prohibited from making the Court for consideration, may be filed the assessment of any tax imposed by this assessment or beginning distraint or a pro­ with the court in which the bankruptcy chapter has been made within the statutory ceeding in court (and in any event, if a_ pro­ or receivership proceeding is pending period of limitation properly applicable ceeding in respect of the deficiency is Placed without awaiting final decision of The thereto, such tax may be collected by dis­ _nf t.hfi Board, until the decision Tax Court. In case of final decision of traint or by a proceeding in court, but only if begun (1) within six years after the assess­ thereafter. The Tax Court before the termination of ment of the tax, or.(2) prior to the expira­ the bankruptcy, debtor, or receivership tion of any period for collection agreed upon § 86.49 Suspension of running of proceeding, a copy of The Tax Court de­ In writing by the Commissioner and the statute of limitations. If a notice of a cision may be filed by the Commissioner donor. deficiency has been mailed to the donor with the court in which such proceed- § 86.47 Period of limitation upon " under the provisions of section 1012 (a) ihg is pending. assessment of tax. The amount of the (see § 86.39), then the running of the While the Commissioner is required tax must be assessed within three years statute of limitations on assessment, on by section 1015 to make immediate after the return was filed. Exceptions the beginning of distraint after assess­ assessment of any deficiency, such as­ to this period of limitation are as ment, or on. the beginning of a proceed­ sessment is not made as a jeopardy as­ ing in court after assessment or without follows: . , , sessment within the meaning of section (1) In case of a false or fraudulent re­ assessment, in respect of any deficiency, 1013 and consequently the provisions of turn with intent to evade tax, the tax shall be suspended for the period during that section do not apply to any assess­ may be assessed at any time after such which the Commissioner is prohibited ment made under section 1015. There­ false or fraudulent return is filed. from making the assessment or from fore, the notice of the deficiency pro­ (2) In the event the donor fails to beginning distraint or a proceeding^ in vided for in section 1013 (b) will not be file a return, the amount of tax due may court (and in any event, if a proceeding mailed. Although such notice will not- be assessed at any time after the date in respect of the deficiency is placed on be issued, nevertheless a letter will be prescribed for filing the return. See the docket of The Tax Court of the sent to the donor, or to the trustee, re­ United- States (formerly known as the ceiver, debtor in possession, or other per­ section 1017 and § 86.49 for provisions son designated by the court in which relating to the suspension of the running Board of Tax Appeals), until the deci­ the bankruptcy or receivership proceed­ of the statute of limitations on the mak­ sion of The Tax Court becomes final), ing is pending as in control of the assets ing of assessments. and for 60 days thereafter. of the debtor, notifying him in detail With respect to the period of limita­ Sec. 1018. Addition to t h e tax in case how the deficiency was computed, that tion for assessing the amount of the OF DELINQUENT RETURN. he may furnish evidence showing where­ liability of a transferee of property of a For addition to the tax in case of failure in the deficiency is incorrect, and that donor, or for assessing the amount of the to make and file a return required by this upon request he will be granted a hear­ liability of a fiduciary under section 3467 chapter within the time prescribed by law of the Revised Statutes, as amended by or prescribed by the Commissioner in pur­ ing with respect to such deficiency. If suance of the law, see section 3612 (d) (1). after such evidence is submitted and section 518 of the Revenue Act of 1934 (31 U.S.C. 192), see section 1025 and Sec. 3612. R eturns executed by com m is­ hearing held any adjustment appears sioner or collector. necessary in the deficiency, appropriate § 86.58. FEDERAL REGISTER, Thursday, A ugust 5, 1943 (d) Additions to tax—(1) Failure to file return. In case of any failure to make and then the delay is due to reasonable § 86.52 Interest on extended ‘pay­ file a return or list within the time pre­ cause. ments. In case an extension of time has scribed by law, or prescribed by the Com­ If the addition to the tax for delin­ been granted for paying any portion of missioner or the collector in pursuance of quency in filing the return has been the tax shown by the donor upon his re­ law, the Commissioner shall add to the tax added, the amount so added shall be turn, the statute requires the imposition 25 per centum of its amount, except that collected in the same manner as the tax of interest upon the amount, the time for when a return is filed after such time and except that the interest provisions of it is shown that the failure to file it was payment of which has been extended, at due to a reasonable cause and not to willful section 1021 (see § 86.53) shall not apply the rate of 6 percent per annum from neglect, no such addition shall be made to to such additional amount. (But see the date upon which such payment the tax: Provided, That in the case of a § 86.55 as to interest accruing after is­ should have been made (the 15th day of failure to make and file a return required suance of notice and demand.) March following the close of the calen­ by law, within the time prescribed by law For addition to the tax in case of dar year) to the expiration of the period or prescribed by the Commissioner in pur­ fraud, see sections 1019 (b) and 3612 (d) of the extension. suance of law, if the last date so prescribed and § 86.51. _ for filing the return is after August 30, 1935, If an extension of time for paying the then there shall be added to the tax, in lieu Six:. 1019. Additions to th e tax in case op deficiency, or any portion thereof, has of such 25 per centum: 5 per centum if the DEFICIENCY. been granted, section 1020 (b) requires failure is for not more than 30 days, with (a) Negligence. If any part of any de­ the imposition of interest upon the an additional 5 per centum for each ad­ ficiency is due to negligence, or intentional amount, the time for payment of which ditional 30 days or fraction thereof during disregard of rules and regulations but with­ has been extended, at the rate of 6 per­ which failure continues, not to exceed 25 out intent to defraud, 5 per centum of the per centum in the aggregate. total amount of the deficiency (in addition cent per annum for the period of the (2) Fraud. In case a false or fraudulent to such deficiency) shall be assessed, col­ extension, i. e., from the date prescribed return or list is willfully made, the Commis­ lected, and paid in the same manner as for the payment (10 days after the date sioner shall add to the tax 50 per centum if it were a deficiency, except that the pro­ of the notice and demand) to the expira­ of its amount. visions of section 1021, relating to interest tion of the period of the extension. (3) Cross reference. on deficiencies, shall not be applicable. For provisions relating to interest in For additions to tax in the case of in­ (b) Fraud. If any part of any deficiency case the amount, the time for payment come tax, see sections 291 and 293, and is due to fraud with intent to evade tax, then of which has been extended, is not paid in the case of a deficiency in gift tax, see 50 per centum of the total amount of the section 1019. deficiency (in addition to such deficiency) on or before the expiration of the period (e) Collection of additions to tax. The shaU be so assessed, collected, and paid, in of the extension granted, see § 86.55. amount added to any tax under paragraphs lieu of the 50 per centum addition to the Example. A deficiency in tax amounting (1) and (2) of subsection (d) shall be col­ tax provided in section 3612 (d) (2). to $500 was determined and assessment lected at the same time and in the same thereof made on the 15th day of July, the manner and as a part of the tax unless § 86.51 Additions to the tax in case of due date of the tax being March 15 preceding. the tax has been paid before the discovery deficiency. If any part of any deficiency The amount of the assessment in this of the neglect, falsity, or fraud, in which is due to negligence, or intentional dis­ instance is $500,- plus interest thereon at 6 case the amount so added shall be collected regard of rules and regulations but with­ percent per annum from and including in the same manner as the tax. out intent to defraud, 5 percent of the March 16 to and including July 15, amounting ***** total amount of the deficiency shall be to $10.03, computed upon the basis of 365 § 86.50 Addition to the tax for failure added to the deficiency, and shall be days to the year (or 366 days in a leap year), or a total assessment of $510.03, which there­ to file return. For failure to file the re­ assessed, collected, and paid in the same upon becomes the amount of the deficiency. turn required by the Internal Revenue manner as the deficiency. The date of the notice and demand by the Code within the time prescribed or If any part of the deficiency is due collector for payment was August 1 following within an extension of time granted by to fraud with intent to evade tax, 50 per­ the assessment. Within 10 days thereafter the collector, unless it is filed after such cent of the total amount of the defi­ $255.02 was-paid' and request was made for time and the failure is shown to have ciency, in addition to the deficiency, an extension of time for paying the balance been due to a reasonable cause and not shall be assessed, collected, and paid in of the deficiency ($255.01), and an extension from August 11 to and including February 11 to willful neglect, 5 percent of the the same manner as the deficiency. The was granted for the payment thereof. This amount of the tax will be added thereto 50 percent addition to the tax provided amount bears interest at 6 percent per annum if the failure is for 30 days or less, by section 1019 (b) js in lieu of the 50 for the period of the extension, amounting with an additional 5 percent for each percent addition provided in section to $7.71. The remaining liability is, there­ additional 30 days or fraction thereof 3612 (d) (2). fore, $262.72. during which failure Continues, not to The interest provisions of section 1021 Sec. 1021. I nterest on deficiencies. exceed 25 percent in the aggregate. (see § 86.53) shall not apply to the addi­ Interest upon the amount determined as Two classes of delinquents are subject tions to the tax described in this section. a deficiency shall be assessed at the same to this addition to the tax: time as the deficiency, shall be paid upon (But see § 86.55 as to interest accruing notice and demand from the collector, and (a) Those who do not file returns after issuance of notice and demand.) shall be collected as a part of the tax, at the and For penalties other than additions to rate of 6 per centum per annum from the due (b) Those who file tardy returns and the tax for willful attempts to evade or date of the tax to the date the deficiency are unable to show reasonable cause for defeat the tax, see section 1024 and is assessed, or, in the case of a waiver under the delay. § 86.56. section 1012 (d), to the thirtieth day after the A donor who files a tardy return and filing of such waiver or to the date the de­ Sec. 1020. I nterest on extended paym ents. ficiency is assessed whichever is the earlier. wishes to avoid the addition to the tax (a) Tax shown on return. If the time for must make an affirmative showing of all payment of the amount determined as the § 86.53 Interest on deficiencies. The facts alleged as a reasonable cause for tax by the donor is extended under the au­ statute provides that the deficiency shall failure to file the return on time in the thority of section 1008 (b), there shall be bear interest at the rate of 6 percent per form of au affidavit or affidavits which collected as a part of such amount, inter­ annum from the due date of the tax (the should be attached to' the return. If affi­ est thereon at the rate of 6 per centum per 15th day of March following the close davits are furnished with the return or annum from the date when such payment should have been made if no extension had of the calendar year) to the date the de­ upon the collector’s demand, the collec­ been granted, until the expiration of the ficiency is assessed, except in the case of tor, unless otherwise directed by the period of the extension. a waiver of the restrictions against the Commissioner, will forward the affidavits (b) Deficiency. In case an extension for assessment and collection of the de­ w'ith the return, and, if the Commis­ the payment of a deficiency is granted, as ficiency, and that such interest shall be sioner determines that the delinquency provided in section 1012 (i), there shall be assessed at the same time as the de­ was due to a reasonable cause and not collected, as a part of the tax, interest on ficiency and shall be collected as part of to willful neglect, the addition to the tax the part of the deficiency the time for pay­ the tax. The deficiency in respect to will not be assessed. If the donor exer­ ment of which is so extended, at the rate of 6 per centum per annum for the period of which the restrictions against the assess­ cised ordinary business care and pru­ the extension, and no other interest shall be ment and collection are waived under the dence and was nevertheless unable to collected on such part of the deficiency for file the return in the prescribed time, provisions of section 1012 (d) bears in­ such period. terest at the rate of 6 percent per an- FEDERAL REGISTER, Thursday» A ugust 5, 1943 10879 num from the due date of the tax to ment of which has been extended, and the § 86.29) or for any portion of a de­ the thirtieth day after the filing of such interest thereon determined under section ficiency (see § 86.42) and the amount 1020 (a), is not paid in full prior to the expi­ due is not paid in full prior to the ex­ waiver or to the date the deficiency is ration of the period of the extension, then, in assessed, whichever is the earlier. The lieu of the interest provided for in paragraph piration of the extension, the total term “deficiency” as used in this section (1) of this subsection, interest at the rate unpaid amount (tax and interest for the includes any tax resulting from the cor­ of 6 per centum per annum shall be collected period of the extension) bears interest rection of a mathematical error appear­ on such unpaid amount from the date of the from the expiration of the extension ing upon the face of a return. (See expiration of the period of the extension until payment is received by the collector §§ 86.38 and 86.39 (b).) until it is paid. at the rate of 6 percent per annum. For provisions relating to interest (b) Deficiency—(1) Payment not ex­ If a deficiency as determined by a de­ upon the deficiency in case an extension tended. Where a deficiency, or any interest cision of The Tax Court of the United assessed in connection therewith under sec­ States (formerly known as the Board of of time for payment is granted, see tion 1021, or any addition to the tax pro­ §§ 86.52 and 86.55. For provisions vided for in section 3612 (d), is not paid in Tax Appeals) which has become final is relating to interest in case of a jeopardy full within 10 days from the date of notice in the amount of a jeopardy assessment, assessment, see § 86.54. and demand from the collector, there shall collection of which was stayed by the be collected as part of the tax, interest upon filing of a bond and such amount is not Sec. 1022. I nterest on jeopardy assess­ the unpaid amount at the rate of 6 per paid in full within 10 days after the m ents. centum per annum from the date of such notice and demand issued subsequent to In the case of the amount collected under notice and demand until it is paid. section 1013 (f) there shall be collected at such final decision, interest accrues on (2) Filing of jeopardy bond. If a bond is the unpaid amount for which such notice the same time as such amount,, and as a filed, as provided in section 1013, the provi­ part of the tax, Interest at the rate of 6 sions of paragraph (1) of this subsection and demand was made, from the date of per centum per annum upon such amount shall not apply to the amount covered by the notice and demand until it is paid from the date of the jeopardy notice and the bond. at the rate of 6 percent per annum. demand to the date of notice and demand If, in the case of bankruptcy, debtor’s under section 1013 (1), or, in the case of (3) Payment extended. If the part of the the amount collected in excess of the deficiency the time for payment of which is relief proceeding, or a receivership for extended as provided in section 1012 (i) is any donor, any portion of the claim for a amount of the jeopardy assessment, interest not paid in accordance with the terms of the as provided in section 1021. deficiency (including interest and any extension, there shall be collected, as a part other amount assessed and collectible as § 86.54 Interest on jeopardy assess­ of the tax, interest on such unpaid amount at a part thereof) presented for adjudica­ ments. In case a stay of the oollection the rate of 6 per centum per annum for the tion in accordance with law is unpaid, of a jeopardy assessment of a deficiency period from the time fixed by the terms of the extension for its payment until it is paid, the unpaid portion of the claim, if not tax (together with interest and any and no other interest shall-be collected on paid in full within 10 days from notice other amount assessed and collectible such unpaid amount for such period. and demand from the collector, bears as a part thereof) is obtained in accord­ (4) Jeopardy assessment—payment stayed interest from the date of such notice and ance with the provisions of section 1013 by bond. If the amount included in the demand until paid at the rate of 6- per­ (f) (see § 86.43), and a petition for a notice and demand from the collector under cent per annum. redetermination of the deficiency is filed section 1013 (i) is not paid in full within with The Tax Court of the United States 10 days after such notice and demand, then Sec. 1024. P enalties. there shall be collected, as part of the tax, (a) Any person required under this chap­ (formerly known as the Board of Tax interest upon the unpaid amount at the ter to pay any tax, or required by law or regu­ Appeals), interest accrues on the unpaid rate of 6 per centum per annum from the lations made under authority thereof to make portion of any such amount determined date of such notice and demand until it a return, keep any records, or supply, any by a decision of The Tax Court which is paid. information, for tha purposes of the com­ becomes final, at the rate of 6 percent (5) Interest in case of bankruptcy and re­ putation, assessment, or collection of any per annum from the date of the notice ceiverships. If the unpaid portion of the tax imposed by this chapter, who willfully and demand from the collector following claim allowed in a bankruptcy or receiver­ fails to pay such tax, make such return, keep the jeopardy assessment to the date of ship proceeding, as provided in section 1016, such records, or supply such information, at is not paid in full within 10 days from the the time or times required by law or regu­ the notice and demand by the collector date of notice and demand from the collec­ lations, shall, in addition to other penalties subsequent to the final action taken on tor, then there shall be collected as a part provided by law, be guilty of a misdemeanor the petition filed with The Tax Court. of such amount interest upon the unpaid and, upon conviction thereof, be fined not If the amount determined by The Tax portion thereof at the rate of 6 per centum more than $10,000, or imprisoned for not Court as the amount which should have per annum from the date of such notice more than one year, or both, together with and demand until payment. the costs of prosecution. been assessed is greater than the amount (b) Any person who willfully attempts in actually assessed, the difference bears § 86.55 Interest on delinquent taxes. any manner to evade or defeat any tax im­ interest at the rate of 6 percent per an­ If any portion of the tax shown on the posed by this chapter or the payment thereof, num from the due date of the tax until donor’s return is not paid on or before shall, in addition to other penalties provided the assessment of such difference. If the the due date (the 15th day of March fol­ by law, be guilty of a felony and, on convic­ collection of the jeopardy assessment is lowing the close of the calendar year) tion thereof, be fined not more than $10,000, stayed, and no petition is filed with The or imprisoned for not more than five years, or and no extension of time for payment both, together with the costs of prosecution. Tax Court for a redetermination of the thereof has been granted, such unpaid deficiency, interest accrues upon the de­ portion bears interest from the due date § 86.56 Penalties. Two kinds of pen­ ficiency so assessed at the rate of 6 per­ until payment is received by the collec­ alties are provided for delinquency with cent per annum from the date of the tor at the rate of 6 percent per annum. respect to duties imposed by the statute : jeopardy notice and demand to the date If any portion of a deficiency assessed, (1) Criminal penalties, and of the .notice and demand made by the together with interest and any other (2) Penalties of a certain percentage collector after the expiration of the pe­ amount assessed and collectible as a of the tax, to be added to and collected riod prescribed for the filing of the part thereof, is not paid within 10 days in the same manner as the tax. petition. from the date of the notice and demand ' In any case where more than one pen­ S ec. 1023. Additions to t h e tax in case of issued by the collector (except a defi­ alty is provided, the Government may NONPAYMENT. ciency with respect to which a jeopardy assert any one or more thereof. (a) Tax shovm on return—(1) Payment assessment is made and collection is Any person required by the Internal not extended. Where the amount determined Revenue Code to pay any tax, or re­ by the donor as the tax imposed by this stayed by the filing of bond), and no chapter, or any part of such amount, is not extension of time for payment thereof quired by law or regulations made under paid on the due date «# the tax, there shall has been granted, such unpaid amount authority thereof to file any notice or be collected as a part of the tax, interest bears interest from the date of the notice make a return, keep any records, or upon such unpaid amount at the rate of and demand until payment is received supply any information, for the purposes 6 per centum per annum from the due date by the collector at the rate of 6 percent of the computation, assessment, or col­ until it is paid. lection of the tax, who willfully fails (2) Payment extended. Where an exten­ per annum. sion of time for payment of the amount so If an extension of time has been to pay such tax, file such notice or make determined as the tax by the donor has been granted for paying any portion of the such return, keep such records, or supply granted, and the amount the time for pay­ tax shown on the donor’s return (see such information as required by the No. 154----- 4 10880 FEDERAL REGISTER, Thursday, A ugust 5, 1943 law and the regulations, shall, in addi­ (c) C ro s s reference. For compromises relationship, notice of liability enforceable tion to the other penalties, be guilty of after judgment, see R. S. 3469 (U. S. C., Title under this section in respect of a tax imposed a misdemeanor and, upon conviction 31, § 194). by this chapter, if maiied to the person sub-' Ject to the liability at his last known address, thereof, be fined not more than $10,000, § 86.57 Compromises. Offers in com­ shall be sufficient for the purposes of this or imprisoned for not more than one promise should be filed with the appro­ chapter even if such person is deceased, or year, or both, together with the costs of priate collector of internal revenue. No is under a legal disability, or, in the case of a prosecution. offer in compromise of tax, interest, and corporation, has terminated its existence. Any person who willfully attempts in ad valorem penalty collectible as part any manner to evade or defeat any gift of the tax will be accepted unless there § 86.58 Claims in cases of transferred tax shall, in addition to other penalties is a substantial doubt as to either liability assets. The amount for which r, trans­ provided by law, be guilty of a felony or collectibility. feree of the property of a donor is liable, and, on conviction thereof, shall be fined at law or in equity, and the amount of not more than $10,000, or imprisoned, S ec. 1025. T ransferred assets. the personal liability of a fiduciary under (a) Method of collection. The amounts section 3467 of the Revised Statutes, as for not more than five years, or both, of the following liabilities shall, except as together with the costs of prosecution. hereinafter in this section provided, be as­ amended by section 518 of the Revenue Any person who willfully aids or as­ sessed, collected, and paid in the same man­ Act of 1934, 31 USC 192, in respect of sists in the preparation or presentation ner and subject to the same provisions and the tax, whether such tax is shown on of a false or fraudulent notice or return, limitations as in the case of a deficiency in the return of the donor or determined the tax imposed by this chapter (including as a deficiency, shall be assessed against or procures, counsels, or advises the prep­ the provisions in case of delinquency in pay­ aration or presentation of such notice or such transferee or such fiduciary, as the ment after notice and demand, the provisions case may be, and collected and paid in return, whether such falsity or fraud is authorizing distraint and proceedings in with or without the knowledge or consent court for collection, and the provisions pro­ the same manner and subject to the of the person required to make the no­ hibiting claims and suits for refunds): same provisions and limitations as in tice or return, will be guilty of a felony (1) Transferees. The liability, at law or the case of a deficiency in the tax, except and, upon conviction thereof, fined not in equity, of a transferee of property of a as hereinafter provided. more than $10,000, or imprisoned for not donor, in respect of the tax (including in­ The term “transferee” as used in this terest, additional amounts, and additions section includes among others a donee, more than five years, or both, together to the tax provided by law) imposed by this with the costs of prosecution. (See sec­ chapter. heir, legatee, devisee, and distributee. tion 3793 (b>.) • (2) Fiduciaries. The liability of a fiduciary The period of limitation for assess­ Any person who, in connection with under section 3467 of the Revised Statutes ment of the liability of a transferee or any compromise entered into or offer (U. S. C., Title 31, sec. 192) in respect of the of a fiduciary, is as follows: payment of any such tax from the estate of (1) Within one year after the expira­ made under the provisions of section the donor. 3761, or who, in connection with any tion of the period of limitation for as­ closing agreement under section 3760 Any such liability may be either as to the sessment against the donor. (see § 86.69) or the offer to enter into amount of tax shown on the return or as (2) If a court proceeding against the any such agreement, willfully conceals to any deficiency in tax. donor for the collection of the tax has (b) Period of limitation. The period of been begun within the period of limita­ from any officer or employee of the limitation for assessment of any such liabil­ tion for the bringing of such proceeding, United States any property belonging ity of a transferee or fiduciary shall be as fol­ to the estate of the donor or to any per­ lows: then within one year after the return of son liable in respect of the tax, or re­ (1) Within one year after the expiration the execution in such proceeding. ceives, destroys, mutilates, or falsifies of the period of limitation for assessment For the purpose of determining the any book, document, hr record, or makes against the donor. period of limitation for assessment under oath any false statement relating (2) If a court proceeding against the donor against a transferee or a fiduciary, if to the estate or financial condition of the for the collection of the tax has been begun the donor is deceased, the period of lim­ within the period provided in paragraph itation for assessment against the donor donor or other person liable in respect (1),—then within one year after return of shall be the period that would be in of the tax, shall, upon conviction thereof, execution in such proceeding. be fined not more than $10,000, or im­ (c) Period for assessment against donor. effect had the death not occurred. prisoned for not more than one year, or For the purposes of this section, if the donor If a notice of the liability of a trans­ both. (See section 3762.) is deceased, the period of limitation for feree or the liability of a fiduciary has For penalties imposed for failure to assessment against the donor shall be the been mailed to such transferee or to make and file a return, or for fraud with period that would be in effect had the death such fiduciary under the provisions of intent to evade tax, which consist of a not occurred. section 1012 (a) (see § 86.39), then the percentage of the tax to be added thereto (d) Suspension 6. running of statute of running of the statute of limitations limitations. The running of the statute of shall be suspended for the period during and collected in the same manner as the limitations upon the assessment of the lia­ tax, see sections 1019 and 3612 (d) and bility of a transferee or fiduciary shall, after which the Commissioner is prohibited §§ 86.50 and 86.51. the mailing of the notice under section from making the assessment in respeck 1012 (a) to the transferee or fiduciary, be of the liability of the transferee or Sec. 3761. Compromises. fiduciary (and in any event, if a pro­ (a) Authorization. The Commissioner, suspended for the period during which the with the approval of the Secretary, or of the Commissioner is prohibited from making the ceeding in respect of the liability is Under Secretary of the Treasury, or of an assessment in respect of the liability of the placed on the docket of The Tax Court Assistant Secretary of the Treasury, may transferee or fiduciary (and in any event, if of the United States (formerly known compromise any civil or criminal case arising a proceeding in respect of the liability is placed on the docket of the Board, until the as the Board of Tax Appeals), until the under the internal revenue laws prior to ref­ decision of The Tax Court becomes erence to the Department of Justice for pros­ decision of the Board becomes final), and for ecution or defense; and the Attorney General 60 days thereafter. final), and for 60 days thereafter. may compromise any such case after refer­ (e) Prohibition of suits to restrain en­ Sec. 1026. Notice of fiduciary relation­ ence to the Department of Justice for prose­ forcement of liability of transferee or fidu­ s h ip . cution or defense. ciary. No suit shall be maintained in any (a) Fiduciary of donor. Upon notice to (b) Record. Whenever a compromise is court for the purpose of restraining the as­ the Commissioner that any person is acting made by the Commissioner in any case there sessment or collection of (1) the amount of in a fiduciary capacity such fiduciary shall shall be placed on file in the office of the the liability, at law or in equity, of a trans­ assume the powers, rights, duties, and privi­ Commissioner the opinion of the General feree of property of a donor in respect of any leges of the donor in respect of a tax imposed Counsel for the Department of the Treas­ gift tax, or (2) the amount of the liability by this chapter (except as otherwise spe­ ury, or of the officer acting as such, with his of a fiduciary under section 3467 of the Re­ cifically provided and except that the tax reasons therefor, with a statement of— vised Statutes (U. S. C., Title 31, sec. 192) in shall be collected ¡fyom the estate of the (1) The amount of tax assessed, respect of any such tax. donor), until notice is given that the fiduci­ (2) The amount of additional tax or pen­ (f) Definition of “transferee.” As used in ary capacity has terminated. alty imposed by law in consequence of the this section the term “transferee” includes (b) Fiduciary of transferee. Upon notice neglect or delinquency of the person against donee, heir, legatee, devisee, and distributee. to the Commissioner that any person is act­ whom the tax is assessed, and (g) Address for notice of liability. In the ing in a fiduciary capacity for a person sub­ (3) The amount actually paid in accord­ absence of notice to the Commissioner under ject to the liability specified in section 1025, ance with the terms of the compromise. section 1026 (b) of the existence of a fiduciary the fiduciary shall assume, on behalf of such. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10881 person, the powere, rights, duties, and privi­ even though such donor, transferee, or Sec. 457. Overpayment found by Board. leges of such person under such action (ex­ other person is deceased, or is under a [Revenue Act of 194.2, Title IV, Part II. Ef­ cept that the liability shall be collected from legal disability, or, in the case of a cor­ fective for calendar year 1943 and each cal­ the estate of such person), until notice is endar year thereafter.] given that the fiduciary capacity has ter­ poration, has terminated its existence. The second sentence of section 1027 (d) minated. Under such circumstances if no petition (relating to overpayment found by the Board (c) Manner of notice. Notice under sub­ is filed with The Tax Court of the United of Tax Appeals) is amended by striking out section (a) or (b) shall be given in accord­ States (formerly known as the Board of “or the filing of the petition” and inserting ance with regulations prescribed by the Tax Appeals) before the expiration of in lieu thereof “or the mailing of the notice Commissioner with the approval of the the period prescribed for the filing of the of deficiency. Secretary. petition by the donor, transferee, or Sec. 451. Gif t s to w h ic h amendments ap­ plicable. [Revenue Act of 1942, Title IV, § 86.59 'Notice of fiduciary relation­ other person, the tax, or liability under Part II.] . ship. As soon as the Commissioner re- section 1025, will be assessed immediately Except as otherwise expressly provided, cieves notice that any person is acting upon the expiration of such period, and the amendments made by this Part shall be In a fiduciary capacity for a donor or a demand for payment will be made by the applicable only with respect to gifts made in collector. The term “fiduciary” is de­ the calendar year 1943, and succeeding cal­ donor’s estate, such fiduciary must, ex­ endar years. cept as otherwise specifically provided, fined by section 3797 (a) (6) to mean Sec. 503. Sunr against collector bar in assume the powers, rights, duties, and guardian, trustee, executor, administra­ other su its. [Revenue Act of 1942.] privileges of the donor in respect of the tor, receiver, conservator, or any person Section 3772 (relating to suits) is amended the tax. If the person is acting as a acting in any fiduciary capacity for any by inserting at the end thereof the following fiduciary for a transferee or other per­ person. new subsection: son subject to the liability specified in (d) Suits against collector a bar.—A suit Sec. 1027. Refunds and credits. [As orig­ against a collector (or former collector) or section 1025 (see § 86.58), such fiduciary inally enacted.] is required to assume the powers, rights, (a) Authorization. Where there has been his personal representative for the recovery duties, and privileges of the transferee or of any internal revenue tax alleged to have an overpayment of any tax imposed by this been erroneously or illegally assessed or col­ other person under that section. The chapter, the amount of such overpayment lected, or of any penalty claimed to have been amount of the tax or liability is, however, shall be credited against any gift tax then collected without authority, or of any sum not collectible from the estate of the due from the taxpayer, and any balance shall alleged to have been excessive or in any man­ fiduciary but is collectible from the estate be refunded immediately to the taxpayer. (b) Limitation on allowance—(1) Period ner wrongfully collected shall be treated as of the donor or from the estate of the of limitation. No such credit or refund shall if the United States had been a party to such transferee or other person subject to the be allowed or made after three years from the suit in applying the doctrine of res judicata liability specified in section 1025. The time the tax was paid, unless before the ex­ in all suits instituted after June 15, 1942, in “notice to the Commissioner” provided respect of any internal revenue tax, and in all piration of such period a claim therefor is proceedings in the Board and on review of for in section 1026 shall be a written no­ filed by the taxpayer. decisions of the Board where the petition to tice signed by the fiduciary and filed with (2) Limit on amount of credit or refund. the Board was filed after such date. the Commissioner. The notice must The amount of the credit or refund shall state the name and address of the person not exceed the portion of the tax paid during Sec. 3770. Authority to make abatements, the three years immediately preceding the credits, and refunds. for whom the fiduciary is acting and filing of the claim, or if no claim was filed, (a) To taxpayers. the nature of the liability of such person; then during the three years immediately pre­ ***** that is, whether it is a liability for the ceding the allowance of the credit .or refund. (2) Assessments and collections after limi­ tax, and, if so, the year or years involved, (c) Effect of petition to Board. If the tation period. Any tax (or any interest, pen­ or a liability at law or in equity of a Commissioner has mailed to the taxpayer a alty, additional amount, or addition to such transferee of property of the donor, or a notice of deficiency under section 1012 (a) tax) assessed or paid after the expiration of liability of a fiduciary under section 3467 and if the taxpayer files a petition with the the period of limitation properly applicable of the Revised Statutes, as amended by Board of Tax Appeals within the time pre­ thereto shall be considered an overpayment section 518 of the Revenue Act of 1934, scribed in such subsection, no credit or re­ and shall be credited or refunded to the tax­ fund in respect of the tax for the calendar payer if claim therefor is filed within the 31 U.S.C. 192, in respect of the payment year in respect of which the Commissioner period of limitation for filing such claim. of any tax from the estate of the donor. has determined the deficiency shall be al­ Sec. 3775. Credits after periods of lim ita­ Satisfactory evidence of the authority of lowed or made and no suit by the taxpayer t io n . the fiduciary to act for such person in the for the recovery of. any part of such tax (a) Period against United States. Any fiduciary capacity must be filed with and shall be instituted in any court except— credit against a liability in respect of any made a part of the notice. If the fiduci­ (1) As to overpayments determined by a taxable year shall be void if any payment ary capacity exists by order of court, a decision of the Board which has become final; in respect of such liability would be con­ certified copy of the order may be re­ and sidered an overpayment under section 3770 (2) As to any amount collected in excess (a) (2). garded as such satisfactory evidence. of an amount computed in accordance with Sec. 3771. I nterest on overpayments. When the fiduciary capacity has termi­ the decision of the Board which has become (a) Rate. Interest, shall be allowed and nated, the fiduciary, in order to be re­ final; and paid upon any overpayment in respect of any lieved of any further duty or liability as (3) As to any amount collected after the internal revenue tax at the rate of 6 per such, must file with the Commissioner period of limitation upon the beginning of centum per annum. written notice that the fiduciary capac­ distraint or a proceeding in court for col­ (b) Period. Such interest shall be allowed lection has expired; but in any such claim and paid as follows: ity has terminated as to him, accompa­ for credit or refund or in any such suit for (1) Credits. In the case of a credit, from nied by satisfactory evidence of the ter­ refund the decision of the Board which has the date of the overpayment to the due mination of the fiduciary capacity. The become final, as to whether such period has date of the amount against which the credit notice of termination should state the expired before the notice of deficiency was is taken, but if the amount against which the name and address of the person, if any, mailed, shall be conclusive. credit is taken is an additional assessment of who has been substituted as fiduciary. (d) Overpayment found by Board. If the a tax imposed by the Revenue Act of 1921, 42 If the notice of the fiduciary capacity Board finds that there is no deficiency and Stat. 227, or any subsequent Revenue Act, described in the preceding paragraph is further finds that the taxpayer has made then to the date of the assessment of that an overpayment of tax in respect of the tax­ amount. not filed with the Commissioner prior to able year in respect of which the Commis­ (2) Refunds. In the case of a refund, from the sending of notice of a deficiency by sioner determined the deficiency, the Board the date of the overpayment to a date pre­ registered mail to the last known ad­ shall have jurisdiction to determine the ceding the date of the refund check by not dress of the donor (see section 1012 (a)), amount of such overpayment, and such more than thirty days, such date to be de­ or the last known address of the trans­ amount shall, when the decision of the Board termined by the Commissioner, whether or feree or other person subject to liability has become final, be credited or refunded to not such refund check is accepted by the tax­ (see section 1025), no notice of the de­ the taxpayer. No such credit or refund payer after tender of such check to the tax­ shall be made of any portion of the tax unless payer. The acceptance of such check shall ficiency will be sent to the fiduciary. In the Board determines as part of its decision be without prejudice to any right of the such a case the sending of the notice to that such portion was paid within three years taxpayer to claim any additional overpay­ the last known address of the donor, before the filing of the claim or the filing ment and interest thereon. transferee, or other person, as the case of the petition, whichever is earlier, or that (c) Additional assessment defined. As used may be, will be a sufficient compliance such portion was paid after the mailing of in this section the term “additional assess­ with the requirements of the statute, the notice of deficiency. ment” means a further assessment for a tax 10882 FEDERAL REGISTER, Thursday, A ugust 5, 1943 of the same character previously paid in filed in the office of the collector for the Claims must set forth in detail and part, and includes the assessment of a defi­ district in which the tax was paid. (See ciency of any income or estate tax imposed under oath each ground upon which a by the Revenue Act of 1924, 43 Stat. 253, or § 86.63.) As to interest in case of credits credit or refund is claimed and facts by any subsequent Revenue Act. or refunds, see section 3771 of the In­ sufficient to apprise the Commissioner * * * * * ternal Revenue Code and section 177 (b) of the exact basis thereof. No credit or § 86.60 Authority for abatement, of the Judicial Code as amended by Act refund will be allowed or made after credit, or refund. Authority for the of June 22, 1936 (28 U.S.C. 284). three years from the date of the payment credit or refund of an overpayment is § 86.62 Claims by collectors. A col­ of the tax sought to be credited or re­ contained in section 1027. As to the lector may present blanket claims for funded, except upon one or more of the abatement of a jeopardy assessment by the abatement of certain items which grounds set forth in a claim or an amend- the Commissioner before The Tax Court were erroneously assessed. Many of . ment thereof filed prior to the expira­ of the United States (formerly known these items fall in a class where the tion of such period. A claim which does as the Board of Tax Appeals) renders error in assessment is apparent, and not comply with this paragraph will not a decision, see § 86.43. the abatement of such assessment by be considered for any purpose as a claim Section 1014 prohibits the filing of thejise of blanket claims serves to re­ for credit or refun^J. claims for abatement by donors with lieve the collector of the charge against The burden of proof to sustain a claim respect to assessments of the tax. The him for such amount and to relieve him for credit or refund rests upon the claim­ provisions of section 1014 do not impair in an expeditious manner of the duty of ant and all facts relied upon in support the authority of the collectors to file collecting from the donor certain of the claim must be clearly set forth claims with the Commissioner for relief amounts which a summary examination under oath. Every affidavit, argument, from charges against them for uncol­ clearly shows are not due from the donor. brief, or statement of facts, prepared or lectible items, in accordance with sec­ Some of the items included in this class filed by an attorney or agent as argument tion 3950, which provides: of cases are duplicate assessments, or evidence in the matter of a claim, must amounts assessed as unidentified collec­ have therein a statement signed by such Sec. 3950. Charges and credits. attorney or agent showing whether or (a) Charges. Every collector shall be tions and later identified, assessments charged with— resulting from errors in computation, not he prepared such document and (1) Taxes. The whole amount of taxes, and amounts assessed as excess collec­ whether or not the attorney or agent whether contained in lists transmitted to tions which are subsequently credited knows of his own knowledge that the him by the Commissioner, or by other col­ against taxes later found to be due. facts contained therein are true. When lectors, or delivered to him by his prede­ there is a hearing, should the donor not cessor in office, and the additions thereto; In the event an erroneous assessment appear in person, his representative who (2) Stamps. The par value of all stamps has been paid, the collector may file a appears must present a properly exe­ deposited with him; and blanket claim for credit of such amounts cuted power of attorney and be enrolled (3) Moneys. All moneys collected for pen­ against any unpaid assessments standing to practice before the Treasury Depart­ alties, forfeitures, fees, or costs. against the donor upon the assessment ment. (See § 86.27.), (b) Credits. Every collector shall be cred­ lists held by the collector. If there are ited with— If a return is filed by a donor who sub­ (1) Payments into Treasury. All pay­ no such unpaid assessments against sequently dies and a refund claim is ments into the Treasury made as provided which credit may be taken, the collector thereafter filed by a legal representative by law; shall submit refund schedules to cover of the deceased, certified copies of the (2) Returned stamps. All stamps returned such amounts in accordance with in­ letters testamentary or letters of admin­ by him uncancelled to the Treasury; structions issued by the Commissioner. istration, or other similar evidence must (3) Taxes transmitted to other collectors. But no such credit or refund shall be al­ The amount of taxes contained in the lists lowed or made unless allowed or made be annexed to the claim to show the au­ transmitted in the manner provided in sec­ thority of the executor, administrator, tion 3651 (b) to other collectors, and by them within the statutory period of limitation or other fiduciary by whom the claim is Teceipted as therein provided; properly applicable thereto. filed. If an executor, administrator, (4) Taxes of insolvent or absconded per­ The collector may also present claims guardian, trustee, receiver, or other fi­ sons. The amount of the taxes of such per­ for credit of taxes not erroneously as­ duciary files a return and thereafter a sons as may have absconded or become sessed but found to be uncollectible. refund Glaim is filed by the same fiduci­ insolvent, prior to the day when the tax (See section 3950.) In such cases the ought, according to the provisions of law, to ary, documentary evidence to establish have been collected; collector or deputy collector who made the legal authority of the fiduciary-need (5) Uncollected taxes transferred to suc­ the demand for the payment and is con­ not accompany the claim, provided a cessor. All uncollected taxes transferred by versant with the facts may prepare the statement is made in the claim showing him or by his deputy acting as collector to claim for credit. Even though the col­ that the return was filed by the fiduciary his successor in office: Provided, -That it shall lector is so credited with the amount al­ and that the latter is still acting. In be proved to the satisfaction of the Com­ lowed as uncollectible, nevertheless the such cases, if a refund or interest is to missioner, who shall certify the facts to the obligation to pay still remains upon the General Accounting Office, that due diligence be paid, letters testamentary, letters of was used by the collector; and person assessed. It is the duty of the col­ administration, or other evidence may (6) Property purchased for United States. lector to use the same diligence to col­ be required, but should be submitted only The amount of all property purchased by lect the tax after he has received credit upon the receipt of a specific request him for the use of the United States, pro­ for an amount as uncollectible as before therefor. If a claim is filed by a fiduciary vided he faithfully account for and pay over the allowance of such credit. Collectors other than the one by whom the return the proceeds thereof upon a resale of the should, therefore, keep a record of all same as required by law. was filed, the necessary documentary taxes thus credited and of the persons evidence should accompany the claim. § 86.61 Credit and refund adjust­ from whom they are due and should en­ Checks in payment of claims allowed ments. Overassessments and overpay­ force payment whenever it is in their will be drawn in the names of the per­ ments of gift taxes will be adjusted by power to do so. sons entitled to the money and may be means of certificates of overassessment. § 86.63 Claims for credit or refund by sent to such persons in care of an at­ Credits or refunds of overpayments on donors. Claims for the crediting or re­ torney or agent who has filed a power of the basis of such certificates of overas­ funding of taxes, interest, penalties, and attorney specifically authorizing him to sessment will be allowed or made even additions to tax erroneously or illegally receive such checks. The Commissioner though claim for credit or refund has collected shall be made on Form 843 and may, however, send any such check direct not been filed. However, credits or re­ should be filed with the collector of in­ to the claimant. In this connection, see funds may not be allowed or made after ternal revenue, although a claim will not section 3477 of the Revised Statutes (31 the expiration of the statutory period be considered defective solely by reason U.S.C. 203), the pertinent part of which of limitation properly applicable unless of the fact that, it is not made on the provides: prior to the expiration of such period form or that it is filed with the Com­ All transfers and assignments made of any a proper claim therefor has been filed missioner of Internal Revenue. A sepa­ claim upon the United States, or of any by the donor. The claim, together with rate claim on such form shall be made part or share thereof, or interest therein, appropriate supporting evidence, must be for each taxable year. whether absolute or conditional, and what- FEDERAL REGISTER, Thursday, A ugust 5, 1943 10883 ever may be the consideration therefor, and courts and the United States Court of (2) In the case of a jeopardy assess­ all powers of attorney, orders, or other au­ Claims against the United States rep­ ment made under section 1013, if the thorities for receiving payment of any, such resenting taxes, penalties, or other sums, amount which should have been assessed claim, or of any part or share thereof, shall should be executed on Form 843 in dupli­ as determined by a decision of The Tax be absolutely null and void, unless they are Court which has become final is less than freely made and executed in the presence cate and filed directly with the Commis­ of at least two attesting witnesses, after the sioner of Internal Revenue, Washington, the amount already collected, the excess allowance of such a claim, the ascertainment D. C. The claimant should state the payment shall be credited or refunded of the amount due, and the issuing of a grounds of his claim under oath, giving subject to the limitations provided in (b) warrant for the payment thereof. Such the names of all parties to the suit, the (1) of this section. transfers, assignments, and powers of attor­ cause of action, the date of its com­ (3) If the amount of the deficiency de­ ney, must recite the warrant for payment, mencement, the date of the judgment, termined by The Tax Court (in a case and must be acknowledged by the person the court in which it was recovered, and where collection has not been stayed by making them, before an officer having au­ the filing of a bond) is disallowed in thority to take acknowledgments of deeds, its amount. To this afiBdavit there and shall be certified by the officer; and it should be annexed two certified copies of whole or in part by the reviewing court, must appear by the certificate that the offi­ the final judgment, and an itemized bill then the overpayment resulting from cer, at the time of the acknowledgment, read of the costs paid, receipted by the clerk such disallowance shall be credited or and fully explained the transfer, assignment, or other proper officer of the court. In refunded without the making of claim or warrant 'of attorney to the person ac­ the case of a judgment rendered by the therefor. (See section 1146.) knowledging the same. Court of Claims, there may be submitted (4) Where the amount collected is in The Commissioner has no authority to iri lieu of a certified copy of'the final excess of the amount computed in ac­ refund on equitable grounds penalties or judgment, a certificate of judgment is­ cordance with the decision of The Tax other amounts legally collected. As to sued by the clerk of the court and two Court which has become final, the excess claims for refund of sums recovered by copies of the court’s opinion, if any was payment shall be credited or refunded rendered. within the period of limitation provided suit see §§ 86.64 and 86.65. in section 1027 (b). § 86.64 Claims for refund in case of § 86.66 Limitations upon the credit­ (5) Where an amount is collected after judgment obtained against collector. ing and refunding of taxes paid, (a) the statutory period of limitation upon (a) Claims for the amount of a judg­ Except as provided in (b) of this section, the beginning of distraint or a proceed­ ment against a collector of internal rev­ (1) the Commissioner is prohibited from ing in court for collection has expired enue for the recovery of taxes, penalties, making credits or refunds of the tax (see § 86.48), the donor may file a claim or other sums should be made on Form after three years from the time the tax for refund of the amount so collected 843 and filed with the Commissioner of was paid unless before the expiration of within the period of limitation provided Internal Revenue, Washington, D. C. such 3-year period a claim therefor is in section 1027 (b). In any such case, The claimant should state the grounds filed, and (2) the amount of such credit .the decision of The Tax Court as to of his claim under oath, giving the or refund shall not exceed the portion whether the statutory period upon col­ names of all the parties to the suit, the of the tax paid during the 3-year period- lection of the tax expired before notice cause of action, the date of its com­ immediately preceding the date of the of the deficiency was mailed shall, when mencement, the date of the judgment, allowance of the credit or refund, or, if the decision becomes final, be conclusive. the court in which it was recovered, and tiie credit or refund is based upon a § 86.67 Crediting of accounts of collec­ its amount. To this afiBdavit there claim, the amount of the credit or re­ tors in cases of assessments against sev­ should be annexed a certified copy of fund shall not exceed the portion of the eral persons covering same liability. If the final judgment in duplicate, a certifi­ tax paid“ during the 3-year period imme­ assessments have been made againstsev- cate of probable cause, and an itemized diately preceding the date of filing such eral persons covering the same tax lia­ bill of the costs paid, receipted by the claim. bility, and payment of such liability by clerk or other proper officer of the court. (b) In any case where a person having one or more of such persons has been In this connection section 989 of the a right to file a petition with The Tax duly certified to the Commissioner, the Revised Statutes (28 U.S.C. 842) pro­ Court of the United States (formerly Commissioner, for the purpose of tem­ vides: known as the Board of Tax Appeals) porarily relieving the collector from lia­ When a recovery is had in any suit or with respect to a deficiency in the tax bility under section 3950, may authorize proceeding against a collector or other officer files such petition within the prescribed him to take credit temporarily with re­ of the revenue for any act done by him, or time, no credit or refund of the tax for spect to the' assessments not specifically for the recovery of any money exacted by the year to which the deficiency relates paid. Such action, however, shall not or paid to him and by him paid into the shall be allowed or made, and no suit Treasury in the performance of his official constitute an abatement and shall not for the recovery of any part of such tax discharge the liability of the persons con­ duty, and the court certifies that there was shall be instituted by the donor, except probable cause for the act done by the col­ cerned. lector or other officer, or that he acted under that: the directions of the Secretary of the Treas­ (1) If The Tax Court finds that the tax Sec. 3774. R efunds after periods of lim ita­ ury, or other proper officer of the Govern­ has been overpaid for the year to which t io n . ment, no execution shall issue against such- the notice of the deficiency relates, if the A refund of any portion of an internal • collector or other officer, but the amount so revenue tax (or any interest, penalty, addi­ decision of The Tax Court as to the tional amount, or addition to such tax) recovered shall, upon final judgment, be pro­ amount overpaid has become final (see vided for and paid out of proper appro­ shall be considered erroneous—(a) Expiration priation from the Treasury. section 1140 of the Internal Revenue of period for filing claim. If made after the Code), and if The Tax Court determines expiration of the period of limitation for (b) If the judgment debtor shall have as a part of its decision (i) that, as to filing claim therefor, unless within such already paid the amount recovered gifts made during the calendar year 1943 period claim was filed; or against him, the claim should be made or thereafter, any portion of the over­ (b) Disallowance of claim and expiration of period for filing suit. In the case of a claim in his name. A certificate of the clerk payment was made within three years filed within the proper time and disallowed of the court in which the judgment was before the filing of the claim for refund or by the Commissioner if the refund was made recovered (or other satisfactory evi­ the mailing of the notice of deficiency, after the expiration of the period of limita­ dence) , showing that the judgment has whichever is earlier, or, as to gifts made tion for filing suit, unless— been satisfied and specifying the exact during the calendar year 1940, 1941, or (1) Within such period suit was begun by sum paid in its satisfaction, with a detail 1942, any portion of the overpayment the taxpayer, or of all items of costs which were paid by was made within three years before the (2) Within such period, the taxpayer and the judgment debtor or for which he is filing of the claim or the filing of the the Commissioner agreed in writing to sus­ liable, should accompany the claim. pend the running of the statute of limita­ petition, whichever is earlier, or (ii) that tions for filing suit from the date of the (See further, § 86.63.) any portion of the overpayment was agreement to the date of final decision in § 86.65 Claims for refund in case of made after the mailing of the notice of one or more named cases then pending before judgment obtained against the United deficiency, the amount of such portion the Board of Tax Appeals or the courts. If States. Claims for the payment of judg­ of the overpayment will be credited or such agreement has been entered into, the ments rendered by United States district refunded. - running of such statute of limitations shall 10884 FEDERAL REGISTER, Thursday, A ugust 5, 1943

be suspended In accordance with the terms estate for whom he acts) in respect of any mony with reference to the matter required of the agreement. internal revenue tax for any taxable period. by law to be included in such return, with (c) Cross reference. For procedure by the (b) Finality. If such agreement.is ap­ power to administer oaths to such person United States to recover erroneous refunds, proved by the Secretary, the Under Secretary, or persons. see section 3746. or an Assistant Secretary, within such time (b) To determine liability of a transferee. Sec. 3775. Credits after periods of lim ita­ as may be stated in such agreement, or later The Commissioner, for the purpose of de­ tio n . agreed to. such agreement shall be final and termining the liability at law or in equity of * * * * * conclusive, and, except upon a showing of a transferee of the property of any person fraud or malfeasance, or misrepresentation (b) Period against taxpayer. A credit of with respect to any Federal taxes imposed of a material fact— upon such person, is hereby authorized, by an overpayment in respect of any tax shall (1) The case shall not be reopened as to be void if a refund of such overpayment any officer or employee of the Bureau of the matters agreed upon or the agreement Internal Revenue, including the field serv­ would be considered erroneous under section modified, by tiny officer, employee, or agent 3774. - ice, designated by him for that purpose, to of the United States, and examine any books, papers, records, or memo­ Sec. 3746. Suits and recovery of errone­ (2) In any suit, action, or proceeding, such ous REFUNDS. randa bearing upon such liability, and may agreement, or any determination, assess­ require the attendance of the transferor or (a) Refunds after limitation period. Any ment, collection, payment, abatement, re­ portion of an internal revenue tax (or any transferee, or of any officer or employee of fund, or credit made in accordance there­ such person, or the attendance of any other interest, penalty, additional amount, or ad­ with, shall not be annulled, modified, set dition to such tax) , refund of which is er­ aside, or .disregarded. person having knowledge in the premises, roneously made, within the meaning of sec­ and may take his testimony with reference tion 3774, may be recovered by suit brought § 86.69 Closing agreements relating to to the matter, with power to administer in the name of the United States, but only if tax liability in respect of internal revenue oaths to such person or persons. such suit is begun within two years after taxes. Closing agreements provided for Sec. 3633. J urisdiction of district courts. the making of such refund. (a) To enforce summons. If any person in section 3760 may relate to the total is summoned under the internal revenue laws ♦ * * ♦ * tax liability of the donor, or to one or (c) Refund based on fraud or misrepresen­ to appear, to testify, or to produce books, tation. Despite the provisions of subsections more separate items affecting such lia­ papers, or other data, the district court of (a) and (b) such suit may be brought at any bility. For example, an agreement may the United States for the district in which time within five years from the making of the be entered into with respect to the total such person resides shall have jurisdiction refund if it appears that any part of the amount of gifts, to deductions, or to the by appropriate process to compel such at­ refund was induced by fraud or the misrepre­ value of property on the date of gift. tendance, testimony, or production of books, papers, or other data. sentation of a material fact. Accordingly, there may be a series of * • * • • * * * * * agreements relating to the tax liability Sec. 3800. J urisdiction of district courts § 86.68 Erroneous refunds and credits. for a single taxable period. Any tax or TO ISSUE ORDERS, PROCESSES, AND JUDGMENTS. A refund is erroneous when made after deficiency in tax determined pursuant to The district courts of the United States at the expiration of the period of limitation such an agreement shall be assessed and the instance of the United States shall have for filing a claim therefor, unless within collected, and any overpayment deter­ such jurisdiction to make and issue, both such period a claim was filed. In the mined pursuant thereto shall be credited in actions at law and suits in equity, writs case where a claim was filed within the or refunded, in accordance with the ap­ and orders of injunction, and of ne exeat re­ proper time and such claim was disal­ plicable provisions of the statute. Such pública, orders appointing receivers, and such lowed by the Commissioner and the pe­ agreements are final and conclusive, ex­ other orders and process, and to render such cept upon a showing of fraud or mal­ judgments and decrees, granting in proper riod of limitation for filing suit by the cases both legal and equitable relief to­ donor had expired prior to the making feasance, or misrepresentation of a ma­ gether, as may be necessary or appropriate of the refund,^ refund is .erroneous un­ terial fact. (See also section 3762.) for the enforcement of the internal revenue less suit was begun by the donor within Sec. 3467. R evised statutes, as amended by laws. The remedies hereby provided are in the period of limitation for filing suit, SECTION 518 OF THE REVENUE ACT OF 1934 (31 addition to and not exclusive of any and all or unless within such period the donor U. S. C. 192). LIABILITY OF FIDUCIARIES. other remedies of the United States in such and the Commissioner agreed in writing Every executor, administrator, or assignee, courts or otherwise to enforce such laws. or other person, who pays, in whole or in Sec, 3632. Authority to administer oaths, to suspend the running of the statute of part, ^ny debt due by the person or estate TAKE TESTIMONY, AND CERTIFY. limitations for filing suit from the date for whom or for which he acts before he sat­ (a) Internal Revenue personnel—(1) of the agreement to the date of the final isfies and pays the debts due to the United Persons in charge of administration of inter­ decision of one or more named cases States from such person or estate, shall be­ nal revenue laws generally. Every collector, then pending before The Tax Court of come answerable in his own person and es­ deputy collector, internal revenue agent, and the United States (formerly known as tate to the extent of such payments for the internal revenue officer assigned to duty un­ the Board of Tax Appeals) or the courts. debts so due to the United States, or for der an internal revenue agent, is authorized so much thereof as may remain due and to administer oaths and take evidence touch­ Any erroneous refund may be recovered unpaid. by suit brought in the name of the United ing any part of the administration of the in­ ternal revenue laws with which he is charged, States within two years after the refund § 86.70 Personal liability of fiduci­ or where such oaths and evidence are author­ was made. If it appears that any part of aries. Every executor, administrator, or ized by law or regulation authorized by law an erroneous refund was induced by assignee, or other person, who pays, in to be taken. fraud or the misrepresentation of a ma­ •whole or in part, any debts due by a do­ * * * * * terial fact, the entire amount of such nor or a donor’s estate for whom or for (b) Others. Any oath or affirmation re­ refund may be recovered by suit brought which he acts before he satisfies and quired or authorized by any internal revenue in the name of the United States within pays the gift tax due to the United States law or by any regulations made under au­ five years after the refund was made. from such donor, is, to the extent of such thority thereof may be administered by any Where a refund of an overpayment payments, personally liable for the pay­ person authorized to administer oaths for ment of such tax. general purposes by the law of the United would be an erroneous refund under the States, or of any State, Territory, or posses- preceding paragraph of this section, a Sec. 3614. Examination of books and w it­ , sion of the United States, or of the District credit of such overpayment allowed nesses. . ' of Columbia, wherein such oath or affirma­ against any tax is void. A credit is (a) To determine liability of the taxpayer. tion is administered, or by any consular officer also void if allowed against a liability The Commissioner, for the purpose of ascer­ ,of the United States. This subsection shall the assessment and collection of which taining the correctness of any return or for not be construed as an exclusive enumeration was barred by the expiration of the pe­ the purpose of making a return where none of the persons who may administer such riod of limitation properly applicable has been made, is authorized, by any officer or oaths or affirmations. thereto. employee of the Bureau of Internal Revenue, including the field service, designated by Viim § 86.71 Securing evidence; taking tes­ Sec. 3760. Closing agreements. for that purpose, to examine any books, timony. In order to ascertain the cor­ (a) Authorization. The Commissioner (or papers, records, or memoranda bearing upon rectness of a return or to determine the any officer or employee of the Bureau of In­ the matters required to be included in the liability of ^ transferee of the property, ternal Revenue, including the field service, return, and may require the attendance of authorized in writing by the Commissioner) the person rendering the return or of any the Commissioner has power to require is authorized to enter into an agreement in officer or employee of such person, or the the áttendance and to take the testi­ writing with any person relating to the lia­ attendance of any other person having knowl­ mony of the person rendering the re­ bility of such person (or of the person or edge in the premises, and may take his testi­ turn, any employee of such person, a FEDERAL REGISTER, Thursday, A ugu st 5, 1943 10885 transferee of the property, or any other domestic corporation owned and held by An original petition, pursuant to sec­ person having knowledge in the prem­ a nonresident not a citizen of the United tion 4 n (d) of the Bituminous Coal Act ises. Such persons may be required to States shall be deemed property situated of 1937, having been duly filed with this in the United States for the purposes of Division by the above-named party, re­ produce any relevant book, paper, or questing the establishment, both tem­ other record. This power may be exer­ the gift tax provisions of the Internal porary and permanent, of price classi­ cised by any revenue agent or inspector Revenue Code. For regulations relating fications and minimum prices for the designated for the purpose. For penal­ to situs of property generally, see § 86.18. coals of certain mines in District No. 4; ties, see § 86.56. (c) Other definitions. For other defi­ for changes in shipping points of cer­ § 86.72 Power to compel compli­ nitions, see section 3797. tain other mines in District No. 4; for ance. Where any person is summoned Sec. 1031. P ublicity of returns. correction of minimum prices of Long to appear and testify, or to produce For provisions with respect to publicity of Hollow Coal Company, Mine Index No. books, papers, or other data, the district returns under this chapter, see subsection 750, by showing the correct location of court of the United States for the dis­ (a) (2) of section 55. the mine as Hocking County rather than trict in which such person resides has Sec. 1029. R ules and regulations. Athens County; and for correction of The Commissioner, with the approval of minimum power to compel the giving of testimony, the Secretary, shall prescribe and publish prices of John W. Freetage, the production of books, papers, or data, all needful rules and regulations for the en­ Mine Index No. 2060, and Dickerson & and to issue any appropriate process, forcement of this chapter. McCullough Coal Co. (Everett Dicker- writ, or order. S ec. 3791. R ules and regulations. son), Mine Index No. 3P59, by showing (a) Authorization— (1) In general. The the correct location of said mines as be­ Sec. 1028. Laws made a p p l ic a b l e . All administrative, special, or stamp pro­ Commissioner, with the approval of the Sec­ ing in Subdistrict No. 4, Middle, instead visions of law, including the law relating retary, shall prescribe and publish all need­ of Subdistrict No. 5; and to the assessment of taxes, so far as applica­ ful rules and regulations for the enforcement It appealing that a reasonable show­ ble, are hereby extended to and made a part of this title. ing of necessity has been made for the (2) In case of change in law. The Com­ of this chapter. missioner may make all such regulations, not granting of temporary relief in the man­ § 86.73 Laws made applicable. All otherwise provided for, as may have become ner hereinafter set forth; and administrative, special, or stamp pro­ necessary by reason of any alteration of law No petitions of intervention having visions of law, including the law relat­ in relation to internal revenue. been filed with the Division in the above- ing to the assessment of taxes, so far as (b) Retroactivity of regulations or rul­ entitled matter; and ings. The Secretary, or the Commissioner The following action being deemed applicable, are made a part of chapter with the approval of the Secretary, may pre­ 4 of the Internal Revenue Code imposing scribe the extent, if any, to which any rul­ necessary in order to effectuate the pur­ the gift tax for the calendar year 1940 ing, regulation, or Treasury Decision, relat­ poses of the Act; and each calendar year thereafter. For ing to the internal revenue laws, shall be It is ordered, That, pending final dis­ provisions of law and regulations au­ applied without retroactive effect. position of the above-entitled matter, thorizing the postponement by reason Sec. 3802. S eparability clause. temporary relief is granted as follows: of war of the performance of certain acts If any provision of this title, or the appli­ Commencing forthwith § 324.7 (Alpha­ cation thereof to any person or circumstances, betical list of code members) is amended required or permitted under the gift is held invalid, the remainder of the title, tax law, see section 507 of the Revenue and the application of such provisions to by adding thereto Supplement R, and Act of 1942 and regulations pertaining other persons or circumstances, shall not be § 324.24 iGeneral prices in cents per net affected thereby. ton for shipment into all market areas) thereto separately promulgated. is amended by adding thereto Supple­ Sec. 1030. Defin it io n s. [As originally en­ § 86.75 Promulgation of regulations. ment T, which supplements are herein­ acted.] In pursuance of the Internal Revenue after set forth and hereby made a part For the purposes of this chapter— (a) Calendar year. The term "calendar Code, the foregoing regulations are hereof. year” includes only the calendar year 1932 hereby made and promulgated. It is further ordered, That pleadings, and succeeding calendar years, and, in the [seal] Norman D. Cann, in opposition to the original petition in case of the calendar year 1932, includes only Acting Commissioner of the above-entitled matter and applica­ the portion of such year after June 6, 1932. Internal Revenue. tions to stay, terminate or modify the (b) Property within the - United States. temporary relief herein granted may be Stock in a domestic corporation owned and Approved: July 30, 1943. filed with the Division on or before held by a nonresident shall be deemed prop­ D. W. Bell, August 7,1943, pursuant to the rules and erty situated within the United States. Acting Secretary of the Treasury. regulations governing practice and pro­ Sec. 458. Definition of property in United [F. R. Doc. 43-12541; Filed, August 2, 1943; cedure before the Bituminous Coal Divi­ States. [Revenue Act of 1942] 11:58 a. m.j sion in proceedings instituted pursuant (a) Technical amendment to definition.— to section 4 II (d) of the .Bituminous Section 1030 (b) is amended to read as fol­ Coal Act of 1937. lows: It is further ordered, That the relief (b) Property within the United States. herein granted shall become final on Stock in a domestic corporation owned and TITLE 30—MINERAL RESOURCES August 10, 1943, unless it shall otherwise held by a nonresident not a citizen of the be ordered. United States shall be deemed property situ­ Chapter III—Bituminous Coal Division The minimum prices proposed by peti­ ated within the United States. tioner for the coals of the Sidwell Bros. [Docket No. A-2049] (b) Effective date of amendment.—The Mine, Mine Index No.. 3160, for truck amendment made by this section shall be Part 324—Minimum P rice Schedule, shipments do not appear to reflect the effective as of February 10, 1939. District No. 4 minimum price increases provided for by the order entered in General Docket § 86.74 Definitions— (a) Calendar ORDER GRANTING RELIEF No. 21 on August 28, 1942. Accordingly, year. The term “calendar year” as used the minimum prices established for these in the gift tax provisions of the Internal Order granting temporary relief and conditionally providing for final relief coals are 20 cents per net ton more than Revenue Code includes the portion of the minimum prices requested therefor the calendar year 1932 after the date of in the matter of the petition of District Board No. 4 for the establishment of in the respective size groups. the enactment of the Revenue Act of Dated: July 24, 1943. 1932, i. e., June 6, 1932, and succeeding price classifications and minimum prices for the coals of certain mines; for [seal] Dan H. Wheeler, calendar years. Director. (b) Property within the United States. changes in shipping points of certain Section. 1030 provides that stock in a other mines and for other relief. 10886 FEDERAL REGISTER, Thursday, A ugust 5, 1943

T emporary and Conditionally F inal Effective Minimum P rices for District No. 4 Note: The material in these supplements is to be read in the light of the classifications, prices, instructions, exceptions, and other pro­ visions contained in Part 324, Minimum Price Schedule for District No. 4 and supplements thereto. FOR ALL SHIPMENTS EXCEPT TRUCK § 324.7 Alphabetical list of code members—Supplement R [Alphabetical list of code members having railroad loading facilities, showing price classification by price group numbers]

Railroad fuel price group Sub­ Freight Price No. Mine Shipping^oints in origin Index Code member Mine name Seam Type dis­ Railroad group trict group No. No. No. No. On Off line line

3162 7 6 Zanesville _ _ ___ 34 PRR ...... 41 113 202-204 2061 8 6 Amesville....___ 24 FV—...... •22-23 109 201-203 697 8 1 Piedmont...... 12 B&O...... 1 101 201-203 3165 8A 8 23 C&O...... 31 103 201-203 77 6 strip 4 71 Erie...... 72 108 202-204 243 4 71 Erie...... 72 108 202-204 3168 7 4 Lisbon______71 Erie...... 72 108 202-204 3170 8 Strip. 1 15 PRR ...... 3 113 202-204 3174 6 4 74 Y&S...... 72 120 202-204 Russell). 1966 6 Deep ___ 4 Lisbon...... 71 Erie— ...... 71 107 201-203 3167 No. 1 8 Strip...... 1 Warrenton...... 18 W&LE...... 3 119 202-204 ,3160 6 5 22 C&O...... 25 104 202-204 361 8A Deep____ 8 Hobson...... 25 NYC...... 31 110 201-203

For letter classification see § 324.9 in Minimum Price Schedule for District No. 4. j Subject to Price Exception No. 4, in 5 324.1 in Minimum Price Schedule. 8 Change in Railroad and Freight Origin Group Number. 2 Shipping point established in previous docket shall no longer be applicable. FOR TRUCK SHIPMENTS [Docket NO. A-1438] § 324.24 General prices in cents per net ton for shipment into all market areas— P art 327—Minimum Price Schedule, ______Supplement T______District No. 7

Base sizes ' MEMORANDUM OPINION AND ORDER ESTAB­ LISHING MINIMUM PRICES faß CO faß © a Memorandum opinion ang order of the Director in the matter of the petition of a H 03 District Board No. 7 for the establish­ a "3 & 3 ¿4 ment of minimum prices for river and Code member Mine Type Seam Ô) M . d ft s 8 ex-river shipments of the coals of Mid­ ft »b ä » g 'S 5 O X S a o vale No. £ Mine (Mine Index No. 122) of © 3 V 3 . S X X Eastern Gas & Fuel Associates (Koppers » .a «Ò CO & a c* Coal Division), a code member in Dis­ .a trict 7. a 1 2 3 4 5 6 7 8 On August 26, 1942, after notice and hearing, Floyd McGown, a duly desig­ S u b d i s t r i c t N o . 1—E a s t e r n O h i o nated Examiner of the Bituminous Coal Division, submitted a report in which JEFFERSON COUNTY he found that: (1) minimum f. o. b. mine 3170 Strip___ 8 295 285 270 245 240 230 210 200 No. l ______prices should be established for the high Ryan, D. M. (Raylahd Coal Co.).. 3167 Strip__ 8 295 285 270 245 240 230 210 200 volatile coals in Size Groups 1 to 27, in­ S u b d i s t r i c t N o . 4 — M i d d l e clusive, produced by Eastern Gas & Fuel

COLUMBIANA COUNTY Associates (Koppers Coal Division) at its Midvale No. 2 Mine (Mine Index No. Hanover..___. ... 3168 Strip__ 7 320 310 295 270 265 245 225 215 New Albany Coal Company (L. D. 3174 Strip__ 6 320 310 295 270 265 245 225 215 122) in District 7, for shipment by Kana­ Russell). wha River to free alongside consumers at all destinations for all uses except COSHOCTON COUNTY for railway locomotive fuel, except that Dickerson & McCullough Coal Co. D. & McC. O. Co. 2059 Deep__ 6 300 290 280 255 250 215 185 175 (Everett Dickerson).1 when floating equipment is loaded on Freetage, John W.1...... J. W. Freetage___ 2060 Deep__ 6 300 290 280 255 250 215 185 176 the Kanawha River, at Cabin Creek Junction, West Virginia, Mine Index No. S u b d i s t r i c t N o . 5— H o c k i n g 122 may reduce said prices 25 cents per HOCKING COUNTY net ton; (2) the Special River Price Preston, Fred (Long Hollow Coal L o n g Hollow... .. 750 Deep__ 6 315 305 295 270 265 215 185 175 Instructions and Exceptions for river Company).2 (free alongside) and ex-river deliveries Sid well Brothers (Carl Sidwell)...... Sidwell Bros____ 3160 Strip__ 6 300 290 280 255 250 215 185 175 set forth on pages 37, 38, 40, 41 and 42, S u b d i s t r i c t N o . 6 — C r o o k s v i l l e and amendments thereto, of the sched­ ule of effective minimum prices for Dis­ MUSKINGUM COUNTY trict No. 8 for all shipments except truck Angelo, Felix . ______Blue Diamond # 2 . 3162 Strip___ 7 300 290 280 255 250 215 185 185 should be made applicable to the coals FERRY COUNTY in question; (3) seasonal discounts for domestic coal should apply; (4) there Standard Hocking Coal Co., T he... R e n d .... 3166 Deep__ 6 300 290 280 255 250 215 185 175 should be added to the f. o. b. mine price SUBDISTRICT No. 8—POMEROY for river (free alongside) not less than

GALLIA COUNTY a reasonable charge for all transporta­ tion and handling to the point at which McFarland, T. E. (Athens Coal A thens.______3165 Deep__ 8A 315 305 295 270 265 215 160 160 Co.). the purchaser takes possession of the “Wheaton, Harold D ______Wheaton __ 3164 Deep__ 8 3 1 5 305 295 270 265 215 160 160 coal, determined in the light of charges currently quoted or used by competing 1 Priced and classified in a previous docket in Subdistrict No. 6 instead of Subdistriot No. 4. river transporters and others rendering 2 Priced and classified in a previous docket in Athens County instead of Hocking County. similar services; and (5) for the de­ [F. R. Doc. 43-12566; Filed, August 8, 1943; 10:23 a. m.J termination of minimum f. o. b. mine FEDERAL REGISTER, Thursday, A ugust 5, 1943 10887 prices for the coals produced at the (b) Deliveries in barges or other float­ of some future development, would have Midvale No. 2 Mine for ex-river deliv­ ing equipment to purchasers for con­ customarily purchased coal moving by eries, the Special River Price Instruc­ sumption on floating equipment operated river at such prices and under such con­ tions and Exceptions shown on pages by them; ditions that the coal moving by river 37, 38, 40, 41, and 42 of the schedule of (c) Deliveries in barges or other float­ would not be competitive with coal of effective minimum prices for District No. ing equipment alongside river docks or comparable quality moving by rail, truck 8 for all shipments except truck, and other barge unloading facilities to those or ex-lake dock, or would have regularly amendments thereto, should be made ap­ retail dealers (not located in the Cin­ purchased coal moving by river at sav­ plicable. The Examiner recommended cinnati, Louisville, Memphis, Chicago or ings over available prices of comparable that an order be entered in conformity Minneapolis-St. Paul areas as herein de­ coal moving by rail, truck or ex-lake with the foregoing provisions. fined), for resale at retail, who operate dock. Such future development may An opportunity to file exceptions to such river docks or other barge unload­ ing facilities and whose yard and storage pertain to the location of the plant or the report of the Examiner was afforded facilities of the consumer or retail dealer, all interested parties. As of the date facilities (in which the coal purchased hereof, no such exceptions have been free alongside is stored, when it is stored) the cost of river transportation or other filed. adjoin such river docks or other barge similar matters. I have considered the entire record in unloading facilities; and Any State or political subdivision of this proceeding and the report of the (d) Deliveries to any person at the a State, which is a consumer of ex-river Examiner, and upon the basis thereof, mine or at a point nearer the mine than coal, may, on its own behalf, file petitions I find that the report of the Examiner the river docks or other barge unloading such as those which a . code member or adequately and accurately reflects the facilities for transportation in barges or the Consumers Counsel Division may law and the facts, as disclosed by the rec­ other floating equipment to a purchaser file, as above provided. ord. Accordingly, I have concluded to who takes free alongside delivery, within (b) Any code member may sell at the approve and adopt the proposed findings the meaning of Item (1) (a) or Item (1) free alongside prices to the following of fact and the proposed conclusions of (c) above. consumers, subject to the limitations in­ law of the Examiner, as the findings of (ii) Definition of ex-river deliveries. dicated: fact and conclusions of law of the Direc­ “Ex-river deliveries”, as used in this (1) American Rolling Mill Company ^ tor. schedule, means deliveries involving river (for consumption at its plants located Upon the entire record in this pro­ transportation other than those defined at Hamilton and Middletown, Ohio). ceeding, upon the basis of the foregoing in Item (1), above. (2) Champion Paper & Fibre Com­ findings of fact and conclusions of law, (iii) Special cases, (a) A ny code pany (for consumption at its plant lo­ and pursuant to section 4 II (d) and member or Consumers Counsel Division, cated at Hamilton, Ohio). other'provisions of the Bituminous Coal on behalf of any consumer or retail (3) The City of Cincinnati, Ohio (for Act of 1337. dealer (which consumer or retail dealer consumption within the city limits). It is ordered, That the proposed find­ falls within the definition of a purchaser (4) The Board of Education of the ings of fact and the proposed conclu­ of ex-river coal, as defined in Item 2 City School District in the City of Cin­ sions of law of the Examiner be, and the above, but who (a) in the past custom­ cinnati, Ohio (for consumption within same hereby are, approved and adopted arily purchased coal moving by river at the city limits). as the findings of fact and conclusions such prices and under such conditions (5) . The Cincinnati Gas and Electric of law of the Director; and that the coal moving by river was not Co. (for consumption at its West End It is, further, ordered, That § 327.14 competitive with coal of comparable Station, located at Cincinnati, Ohio). (Special prices) be, and the same hereby quality moving by rail, truck or ex-lake (6) The County of Hamilton, Ohio is, added to the schedule of effective min­ dock, or (b) in the past regularly pur­ (for consumption at the County Home, imum prices for District No. 7 for all chased coal moving by river at a savings the Court House, and the Tuberculosis shipments except truck in acordance Hospital). with the minimum prices1 for river (free over available prices for comparable coal (7) James Walsh and Company, Inc. moving by rail, truck or ex-lake dock) (for consumption at its plant located alongside deliveries) and ex-river ship­ may file a petition requesting that such ments and the provisions set forth, in consumer or retail dealer be enabled to at Lawrenceburg, Indiana). detail, in Supplement R, which supple­ purchase at the minimum f. o. b. mine (8) Key City Gas Company (for con­ ment is hereinafter set forth and hereby prices for free alongside delivery; and sumption at its plant located at Du­ made a part hereof. the Division shall, after hearing and buque, Iowa). Dated: July 23, 1943. (9) Lawrenceburg Roller Mills Com­ upon satisfactory showing, authorize the pany (for consumption at its plant lo­ [ s e a l ] D a n H . W h e e l e r , sale of river coal to such purchaser by Director. one or more code members at minimum cated at Lawrenceburg, Indiana). (10) The Northern States Power Com­ SUPPLEMENT R f. o. b. mine prices for free alongside de­ livery, subject to such conditions as may pany (for consumption at its Riverside § 327.14 Special prices—(a) Prices for Station Plant at Minneapolis, Minnesota, river (free alongside deliveries) and ex­ be necessary to accomplish the objectives of the Act and to maintain the prescribed and its High Bridge Station Plant at river shipments—(1) Special river price St. Paul, Minnesota, limited to coals in instructions and exceptions—(i) Defini­ minimum prices. Any such petition filed by a code member or Consumers Size Groups Nos. 20, 21, and 22). tions of river (free alongside) deliveries. (11) Old Quaker Company (for con­ “River (free alongside) deliveries”, as Counsel Division, as herein provided, and used in this schedule, means: the procedure subsequent thereto shall sumption at its plant located at Law­ (a) Deliveries in barges or other float­ be governed by the rules and regulations renceburg, Indiana). ing equipment alongside river docks or governing the procedure in respect to ap­ (12) Procter and Gamble Company other barge unloading facilities to pur­ plications under section 4 n (d) of the (for consumption at its Ivorydale and chasers for consumption in their plants Bituminous Coal Act of 1937. St. Bernard plants located at St. Ber­ which adjoin such docks or other barge Similarly, any code member or Con­ nard, Ohio, provided that such coal is unloading facilities; sumers Counsel Division may file a peti­ delivered in not less than barge load tion requesting appropriate relief on be­ lots). 1 The foregoing prices shall include the gen­ (13) Joseph E. Seagram and Sons, eral increase in prices granted by Order of half of any consumer or retail dealer, the Director in General Docket No. 21, dated who in the absence of established mini­ Inc. (for consumption at its plant located August 28, 1942. mum f. o. b. mine prices and by virtue at Lawrenceburg, Indiana). No. 154----- 5 10888 FEDERAL REGISTER, Thursday, A ugust 5, 1943 (2) Price tables.

[High volatile coal prices in cents pernet ton.1.0». b .: Eastern Gas & Fuel Associates (Koppers Coal Division) Midvale No. 2 Mine, Index No. 122, for shipment by river to free ______alongside consumers to all destinations in all market areas. For all uses except for railway locomotive fuel]

Size group Nos.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 16 17 18 19 20 21 22 27

Price classifications...... Q Q Q Q L L K H F H E E E E Prices...... 275 266 255 E E E E E E E E E 245 255 245 235 225 220 220 235 225 220 210 235 225 215 210 205 200 195 190 200

When floating equipment is loaded on Kanawha River at Cabin Creek Junction When destination is within Market Areas 1 to 21, nclusive; 100, n est Virginia, Mine Index No. 122, may reduce the above prices 25 cents per net ton! 101, 102; 105 to 112, inclusive; 118; 125 to 129, inclusive; 131; 133 1. Seasonal discounts. Seasonal discounts for domestic coal as provided in price to 137, inclusive; 139 to 141, inclusive..------No Adjustments. instructions and exceptions may be applied to the prices for free alongside deliveries. when destination is within Market Areas 32 to 41, inclusive; 2. Transportation charges. In all cases of free alongside delivery, as herein before 47 to 60, inclusive; 52 to 69, inclusive; 71, 73; 75 to 78, inclusive; defined, there shall be added to the f. 0. b. mine price not less than a reasonable charge 203, 215, 216, 234, 237 (Idaho), 240and 241...... Deduct 160. for rail, truck, river or other transportation and handling to the point at which the Market Areas 22 to 31, inclusive; 70, 72, 74,103,104, 114, 115, 116; purchaser takes possession of the coal. The reasonableness of the charge at any given 151 to 167, inclusive; and 204to 212, inclusive...... :...... Deduction. time shall be determined in light of the charges then currently quoted or used by Market Areas 42 to 46, inclusive; 200, 201, 202, 213, 214; 217 to 232, competing river transporters and others rendering similar services. inclusive; 236, 244, 245,246...... Deduct 50. Market Areas 237 (Washington), 238, 239, 242, 243; 247 to 254, 3. The prices in the above price table shall be increased or decreased the cents per inclusive...... Add 60. net ton indicated below for the market area at the destination point. Market Areas 113,117; 120 to 124, inclusive; 130,132,142,143; 145 to 148, inclusive; and 1 5 0 ...... Add 10(5. (b) Ex-river deliveries—(1) F. o. b. (5) Price exceptions for retail dealers— (iii) Description of retail dealers mine prices. When coal is sold for ex­ (i) F. o.b. mine prices. All sizes to re­ areas. The following are descriptions of river delivery, whether the sale is made tail dealers having facilities, as described f. o. b. mine or f. o. b. destination or at the areas to which prices for retail some intermediate point, the minimum under Item 1 (c) of Special River Price dealers, as referred to in Ex-River De­ f. o. b. mine price of the size and quality Instructions, but who are located within liveries, Item 5, are applicable: of coal reloaded at the river terminals the Cincinnati, Louisville, Memphis, Chi­ Cincinnati area. Both banks of the Ohio shall be such that the price at destina­ cago or Minneapolis-St. Paul areas, as River from a point at and on the opposite herein described, shall be made on the bank of the River from Silver Grove, Ken­ tion, including the rail, truck, river and tucky, downstream to and including a point other transportation and terminal and basis of an f. o. b. mine price, plus the at and on the opposite bank of the River dock charges or expenses, shall be not all-rail or lake (as the case may be) from Columbia Park, Ohio. less than the minimum all-rail price for freight rate to the destination, the same Both banks of the Licking River from a the same size and quality of coal f. o. b. as herein described for ex-river move­ point at and on the opposite bank of the the originating mine for the destination ment, except that not more than the fol­ River from DeCoursey, Kentucky, downstream Market Area plus the base freight origin lowing deductions in cents per net ton to the confluence of the Licking and Ohio group all-rail freight rate from District Rivers. No. 7 to the same destination. may be made from the f. 0. b. mine Louisville area. Both banks of the Ohio price in order that such coal may deliver River from a point at and on the opposite (2) Delivery costs. Producers or dis­ in barges alongside such retail dealers' bank of the River from Utica, Indiana, down­ tributors shall promptly submit to the stream to and including .a point at and on Coal Division such data and information barge unloading facilities at delivered the opposite bank of the River from Locust as will establish that the coal sold ex­ prices less than the all-rail or lake de­ Point, Indiana. river was sold on a basis whereby it livered price by the amount of these de­ Memphis area. J Both banks of the Missis­ would be delivered at the destination at ductions: sippi River from a point 10 miles upstream an amount not less than the sum of the Cents from the -northerly limits of the City of Size Groups 1 to 15, inclusive, 24, Memphis on the water front to a point 10 f. o. b. mine price for the same size and 25, 26------Deduct 60 miles downstream from the southerly limits quality of coal destined to the same Size Groups 16 to 23, inclusive, 27_ Deduct 20 of the City of Memphis on the water front, Market Area and the base freight origin including a similar .distance on the opposite group all-rail freight rate from District No deductions are applicable to the Chi­ bank of the River. No. 7 to the destination. cago area (see base freight rates to the Both banks of the Wolf River from the (3) Seasonal discounts. Seasonal dis­ Chicago area following). head of navigation, downstream to its con­ (ii) Base freight rates. In determin­fluence with the Mississippi River. counts for domestic coal as provided in Chicago area. Both banks of the Des the price instructions and exceptions as ing the base delivered price from which Plaines River and the Chicago Sanitary and shown for high volatile coals in section I these deductions may be made, the pub­ Ship Canal from a point at and on the of this schedule may be applied to prices lished freight rates from the following opposite side of the Canal and River from for such coal for ex-river delivery. Freight Origin Groups shall be used: Lockport, Illinois, upstream to and including (4) Price exceptions for screenings. Cincinnati Area: Freight Origin Groups 61, all navigable points connected with the Chi­ The f. o. b. mine price for high volatile 123, 150. cago Sanitary and Ship Canal within Cook coal in Size Groups 18 to 22, inclusive, Louisville Area: Freight Origin Groups 80, and Will Counties, Illinois and Lake County, when destined to Market Areas 24, 25, 26, 100 . Indiana including the Lake Michigan harbor. Memphis Area: Freight Origin Groups 70, Minneapolis-St. Paul area. Both banks of 28, 31 and that .part of 23 located east 71, 90. the Mississippi River from a point at the of and including points on the N. Y. C. Chicago Area: The rail freight rate from confluence of the St. Croix and Mississippi Railroad from Anderson to and includ­ Freight Origin Groups 61, 123, 150 to Lake Rivers and on the opposite bank of the ing Alexandria and south of and includ­ Erie ports plus the dumping charge plus the Mississippi River from this point upstream to ing all destinations on the N. Y. C. & bulk vessel cargo rate of 550 to the Chicago a point-at and on the opposite bank , of the St. L. Railroad between and including Area. This results in the same delivered price River from Anoka, Minnesota. Alexandria and Muncie and south of and for the same coal alongside such retail deal­ ers’ barge unloading facilities within the Chi­ [F. R. Doc. 43-12565; Filed, August 3, 1943; including all destinations on the N. Y. C. cago area, whether the coal is delivered along­ 10:22 a. m.] Railroad between Muncie and Winches­ side in river barges or in lake vessels. ter, and that part of 27 lying south of Minneapolis-St. Paul Area:-The rail freight and including the line of the N. Y. C. rate from Freight Origin Groups 61, 123, 150 [Docket No. A-2077] Railroad between Indianapolis and An­ to Lake,Erie ports plus the dumping charge derson, may be adjusted so that such plus the bulk vessel cargo rate of 450 to P art 327— M inim um P rice S chedule, coal will deliver at 170 per net ton below Duluth-Superior plus a dock handling charge D istrict N o. 7 the price for the same coal delivered via •of $1.00 on Lump and Double Screened coal and 500 on other than Lump and Double ORDER GRANTING RELIEF all-rail movement to the same destina­ Screened coal plus the rail freight rate from Order granting temporary relief and tion. Duluth-Superior to the destination. conditionally providing for final relief in FEDERAL REGISTER, Thursday, August 5, 1943 10889 the above-entitled matter and applica­ the matter of the petition of District No petitions of intervention having been filed with the Division in the tions to stay, terminate or modify the Board No. 7 for the establishment of temporary relief herein granted may be price classifications and minimum prices above-entitled matter; and The following action being deemed filed with the Division on or before Au­ for coals produced from certain mines gust 7, 1943, pursuant to the Rules and in District No. 7. necessary in order to effectuate the pur­ poses of the Act;- Regulations Governing Practice and An original petition, pursuant'to sec­ Procedure before the Bituminous Coal tion 4 II (d) of the Bitupiinous Coal Act It is ordered, That, pending final dis­ of 1937, having been duly filed with this position of the above-entitled matter, Division in Proceedings Instituted Pur­ Division by the above-named party, re­ temporary relief is granted as follows: suant to section 4 II id) of the Bitumi­ questing the establishment, both tem­ Commencing forthwith, § 327.11 (Low nous Coal Act of 1937. porary and permanent, of price classi­ volatile coals: Alphabetical list of code It is further ordered, That the relief fications and minimum prices for the members) is amended by adding thereto herein granted shall become final on Au­ coals produced from certain mines in Supplement R, which supplement is gust 10,1943, unless it shall otherwise be District No. 7. hereinafter set forth and hereby made a ordered. It appearing that a reasonable show­ Dated: July-24, 1943. ing of necessity has been made for the part hereof. It is further ordered, That pleadings [seal] D an H. W heeler, granting of temporary relief in the man­ Director. ner hereinafter set forth; and in opposition to the original petition in for D istrict N o. 7 T emporary and Conditionally P inal Effective M inim um P rices the light of the classifications, prices, instructions: exceptions N o t e : The material contained in this supplement is to be read in and other provisions contained 4n Part 327, Minimum Price Schedule for District No. 7 and supplements thereto. m p 4T.T. KTTTPWTENTS EXCEPT TRUCK § 327 11 Low volatile coals: Alphabetical list of code members—Supplement R [Alphabetical list of code members having railway loading facilities, showing price classifications by size groups for all uses except as separately shown]

Price classification by size Freight group No. Sub- origin Mine dis­ Low volatile Shipping point Railroad Code member Mine name steam group index trict No. No. No.

Quinwood, W. Va. NF&G. D D (t) 339 Duo Coal Company *. Martin. Sewell.

fWhen shown under a Size Group Number, this symbol indicates no classifications effective for this size group. »Formerly Martin-Hines Smokeless Coal Company (S. L. Martin). [F. R. Doc. 43-12567; Filed, August 3, 1943; 10:23 a. m.]

August 10, 1943, unless it shall otherwise [Docket No. A-2078] the Division in the above-entitled mat­ ter, and the following action being be ordered. P art 329—Minim um P rice S chedule, deemed necessary in order to effectuate No relief is granted herein as to that D istrict N o. 9 the purposes of the Act; part of the petition requesting changes in price classifications and minimum order granting relief It is ordered, That pending final dis­ position of the above-entitled matter, prices for the coal produced by Alvey’s Order granting temporary relief and temporary relief is granted as follows; No. 2 Mine, Mine Index No. 922, of Alvey conditionally providing for final relief Commencing forthwith, § 329.5 (Alpha­ Brothers (Bernard Alvey) and S. S. in the matter of the petition of District betical list of code members) is amended Wathen Mine, Mine Index No. 682, of Board No. 9 for the establishment of by adding thereto Supplement R, and Wathen-Deanfield Coal Co. (S. S. Wa­ price classifications and minimum prices § 329.24 (General prices in cents per net then) for the reasons that a hearing and for other relief for the coals in ton for shipment into ajiy market area) would be necessary and that insufficient certain mines. is amended by adding thereto Supple­ time remains prior to August 24, 1943, An original petition, pursuant to sec­ ment T, which supplements are herein­ when the Bituminous Coal Act of 1937 tion 4 II (d) of the Bituminous Coal after set forth and hereby made a part will cease to be in effect to finally de­ Act of 1937, having been filed with this hereof. termine this question. Division by the above-named party re­ It is further ordered, That pleadings No relief is granted herein for the questing the establishment, both tem­ in opposition to the original petition in coals of Johnson Mine, Mine Index No. porary and permanent, of price classifi­ the above-entitled matter and applica­ 1094 of Wjll Johnson, for the reasons cations and minimum prices; for change tions to stay, terminate or modify the that no prices were proposed for this in shipping point for the coals of Mine temporary relief herein granted may be mine in petitioner’s Exhibit A. Index No. 212; and also requesting filed with the Division on or before Au­ No relief is granted herein for the coals changes, both temporary and perma­ gust 7, 1943, pursuant to the Rules and of the Daniel Boone No. 2 Mine, of Ster­ nent, in price classifications and mini­ ling Mining Company, for the reason mum prices heretofore established for Regulations Governing Practice and Procedure before the Bituminous Coal that the Code Membership Acceptance Mine Index Nos. 922 and 682; and submitted with respect to this mine has It appearing that a reasonable showing Division in Proceedings Instituted Pur­ not been approved by the Division. of necessity has been made for the grant­ suant to section 4 II (d) of the Bitumi­ Dated: July 24,1943. ing of temporary relief in the manner nous Coal Act of 1937. It is further ordered, That the relief [ seal] D an*H. W heeler, hereinafter set forth; and no petitions Director. of intervention having been filed with herein granted shall become final on 10890 FEDERAL REGISTER, Thursday, A ugust 5, 1943

T emporary and Conditionally F inal E ffective M inim um P rices for D istrict N o. 9 Note: The material contained in these supplements is to he read in the light of the classili« cations, prices, instructions, exceptions and other provisions contained in Part 329, Minimum Price Schedule for District No. 9 and supplements thereto.

FOR ALL SHIPMENTS EXCEPT TRUCK § 329.5 Alphabetical list of code members—Supplement R

©

0 •O Producer M ine • Seam Shipping point Railroad 3 © Ö §

>618 Alabama Mining Co. (Delsie Phelps & Childers. 11...... Beaver D am .... IC. Phelps). >1096 Eates W. C. (Paradise Coal Paradise Mining Co. 11...... Rockport_____ IC. Company). Drakesboro___ L&N. , >1093 Bates, W. C. (Paradise Coal Paradise Mining C o... 12...... Rockport_____ IC. Company). Drakesboro..... L&N. >1091 Black Gem Mining Company Black Gem 11...... Bevier_____ ... L&N. (J. L. Rogers, Jr.) >1089 Clayton & Clayton (Elmo Clay- C & C ...... 11.. Madisonviile.... IC. ton). >1097 Du Vail, Ross ■ __ , DuVall Strip... 9 McHenry_____ IC. >1090 Franklin, Cheslev. Franklin...1 ...... 9 Providence..__ L&N-IC. >721 McCormack, C______W illiams______11 Rockport_____ IC. >607 MeCormack, C ...... Engler...... 11 Rockport._____ IC. >1095 Rye & Kyle (Archie Rye)_____ - ■ R & K~______... 9 Madisonviile__ IC. : 48 Meadows, T. O. (Meadows Coal Lake view #3______6...... Dawson Springs IC. Co.). Charleston...... IC. »212 Hawes,Sherman & Rex____ .... Drakesboro..... L&N. * Beaver Dam__ IC. »1087 Romans. Lonnie.______Drakesboro___ L&N.

1 The f. o. b. mine prices for coal shipped by Mine Index Nos. 618, 1096, 1093, 1091, 1089, 1097, 1090, 721, 607, 1095 to any market area m any size group and for any use, including Railroad Locomotive Fuel, are the-same as the prices shown for Beech Creek Coal Company, Mine Index No. 1, in Price Schedule No. 1 for District No. 9. For All Shin- ments Except Truck. 2 ^he f. o. b. mine prices for coal shipped by Mine Index No. 48 to any market area in any size group and for any use, including Railroad Locomotive Fuel, are the same as the prices shown for Dawson Daylight Coal Company, Mine Index No. 19, in Price Schedule No. 1 for District No. 9, For All Shipments Except Truck. 3 The f. o. b. mine prices for coal shipped by Mine Index Nos. 212, 1087 to any market area for any use, including Railroad Locomotive Fuel, for size groups 1 to 4, inclusive, shall be the same as the prices shown for Sentry Coal Mining Co., Mine Index No. 72, in Price Schedule No. 1 for District No. 9, for All Shipments Except Truck; for size groups 5 to 29, inclusive, the prices Shall be the same as the prices shown for Beech Creek Coal Company, Mine Index No. 1, in Price Schedule No. 1 for District No. 9, For All Shipments Except Truck. 4 Freight Origin Group 30 is no longer applicable.

TRUCK SHIPMENTS § 329.24 General prices in cents per net ton for shipment into any market area—Supplement T

Prices and size group Nos. Mine Code member index index Mine Seam 10, No. 1, 13, 1». 21, 23, 26, 28, 2 3 4 6 6 7 8 ' 9 11, 15 17 19, 25 12 14 20 22 24 27 29

BUTLER COUNTY

Johnson. Will____ . . . ___ 1094 Johnson...... Stray____ 240 230 220 180 175 165 165 155 145 115 55 Romans. Lonnie______1087 Ellis No. 4-A . . . . . Stray____ 240 230 220 180 175 165 165 155 145 115 55 125 120 HANCOCK COUNTY Brimer. J ______.. . 1088 Bee______Stray____ 210 200 190 180 175 165 165 155 145 115 55 125 120 HOPKINS COUNTY

Clayton & Clayton (Elmo 1089« C & C____ _ #11...... 210 200 190 180 175 165 165 155 Clayton). 145 115 55 Franklin, Chesley 1090 Franklin _ . #9...... 210 200 190 180 175 165 165 155 145 115 55 Rye & Kyle (Archie Rye)__ 1095 R & K .______#9...... 210 200 190 180 175 165 165 155 145 115 55 125 120 MUHLENBERG COUNTY

Bates, W. C. (Paradise Coal 1096 Paradise Mining Co. #11...... 210 200 190 180 175 165 16§ 155 Co.). 145 115 55 125 120 Bates, W. C. (Paradise Coal 1093 Paradise Mining Co. #12...... 210 200 190 180 175 165 165 155 145 Cor). 115 55 125 120 Black Gem Mining Com- 1091 Black Gem.. ___ #11...... 210 200 190 180 175 165 165 155 145 « pany (J. L. Rogers, Jr.). 115 55 125 120

OHIO COUNTY DuVall. Ross______1097 DuVall S trip _____ z9___ __ 210 200 190 180 175 165 165 155 145 115 55 .125 120 1 1 « [F. R. Doc. 43-12568; Filed, August 3, 1943; 10:24 a. m.l FEDERAL REGISTER, Thursday, A ugust 5, 1943 10891 mended the following revisions of classi­ appears that the Bituminous Coal Act of P art 334—M inim um P rice S chedule, 1937 will expire (save as provided in sec­ D istrict N o. 14 fications and prices: tion 19 of the Act) August 24, 1943. [Docket No. A-1359] 1 . f o e t h e C o a l s P r o d u c e d a t t h e M i n e s o f B a b b , Examination of the entire record in B o y d , E x c e l s i o r , a n d P e e r l e s s this proceeding leads me to believe that MEMORANDUM OPINION AND ORDER the Report of the Examiner, in so far as Memorandum opinion and order of the Size groups...... 4 6 7 8 9 18 it relates to prices for coals produced by Director in the matter of the petition the Group 1 mines, adequately and accu­ D E E E E J of District Board 14 for revision of the Rail.______4.75 4.50 3.75 rately reflects the evidence. To this effective price classifications and mini­ Truck...... 4.75 4.76 4.75 extent, I believe that the proposed find­ mum prices for the coals produced at ings of fact and proposed conclusions certain mines in Production Group No. 5, 2 P o r t h e C o a l s P r o d u c e d a t t h e M i n e o f H a r p e r of law of the Examiner should be in District No. 14, pursuant to Section adopted as the findings of fact and con­ 4 II (d) of the Bituminous Coal Act of Size clusions of law of the Director. 9 10 11 13 17 18 1937. groups. 4 6 7 8 On the other hand, Paris Purity has This proceeding was instituted upon a vigorously attacked the conclusions and Rail...... D E E E E G F D A J recommendations of the Examiner with petition filed with the Bituminous Coal 4 .0 0 3 .8 5 2 .3 0 2 .1 5 3 .7 5 Division on March 18, 1942, by District T ruck... 4 .7 5 4 .7 5 4 .7 5 4 .7 5 4 .5 0 respect to prices the Examiner found to Board 14, pursuant to section 4 II (d) of be appropriate for the coals produced at the Bituminous Coal Act of 1937. The 3 F o r t h e C o a l s P r o d u c e d a t t h e M i n e o f P a r i s Mine Index No. 511 of Paris Purity. It petition requests the revision of the ef­ P u r i t y has filed voluminous exceptions which fective price classifications and minimum raise varied and complex questions of Size 18 law and fact. Normally, oral argument prices for the coals produced a t the fol­ groups. 4 6 7 8 9 10 li 13 17 lowing six1 mines, all located in Sebas­ would be heard and the entire proceed­ N ing decided at one time. In view of the tian County, Arkansas, in Production Rail...... G H! H H H G F D A 4 .0 0 3 .8 5 2:30 2 .1 5 3 .5 5 approaching elapse of the statute, how­ Group 5 of District 14:2 T ruck... 4 .5 5 4 .5 5 4 .5 5 4 .5 5 4 .3 0 ever, it is hardly feasible to schedule oral argument, permit the filing of appro­ Mine These changes are identical with priate briefs, and finally determine the index Mine name Code member No. those requested in the petition, as issues raised by Paris Purity. Moreover, amended at the hearing, except that the any order which might be entered would Watson Excelsior. Barr Excelsior Coal Co. recommended minimum prices for Paris become inoperative after the Act ex­ 2. „ ~ (herein referred to as Purity mine coals in Size Group 18 are pires. For these reasons it seems advis­ Barr). 10 cents per ton lower, and except that Boyd No. 3— .... Boyd-Sicard Coal Co. able to dismiss the petition in so far as 1 4 . . . . (herein referred to as the changes reflect the increases effected it relates to Paris Purity Coal Company, Boyd). •. • : by the Order of August 28, 1942 in Gen­ effective midnight, August 23, 1943. Barr____ ;------Excelsior Thin Vem Coal 3 4 . . . . Co., Inc. (herein re-, eral Docket No. 21. The Examiner found This appears to be satisfactory to Paris ferred to as Excelsior). that these changes were justified in or­ Purity as well as the other group of Peerless No. 2___ Peerless Coal Co. (herein 1 7 6 . . . referred to as Peerless). der to effect the proper coordination be­ mines involved, and will prejudice Gary__ ...... Harper. W. T. (Harper- tween the prices of the coals of the 1 9 5 . . . Excelsior Coal Co.) neither. (herein referred to as various competing code members. In It is therefore ordered, That the pro­ Harper). arriving at this conclusion, he took into posed findings of fact and conclusions Paris Parity No. 6 Paris Purity Coal Co. 5 1 1 ...... (herein referred to as consideration not only the evidence con­ of law of the Examiner are approved and Paris Purity) cerning mine conditions, operating and adopted as the findings of fact and con­ preparation methods, analyses, appear­ clusions of law of the Director in so far ance, production, and market history, as they relate to the coals produced at All of these mines except the Paris Purity but also that concerning the size stabil­ Mine Index Nos. 2,14, 34,176, and 195. mine hereinafter sometimes will be re­ ity, friability, and slack content of the It is further ordered, That § 334.5 (Al­ ferred to collectively as the Group 1 coals, including the results of drop shat- phabetical list of code members) and mines. t/6 1 * t€StS § 334.24 (General prices for shipment Motions of intervention and protest Paris Purity filed exceptions to the Re­ into all market areas) in the Schedule of were filed by all operators whose mines port of the Examiner but no exceptions Effective Minimum Prices for District No. were involved in the petition. The Bitu­ have been filed by the operators of the 14 for All Shipments Except Truck and minous Coal Consumers’ Counsel filed a Group 1 mines. By letter, the operators the Schedule of Effective Minimum Prices notice of appearance and brief. After of the Group 1 mines have requested dis­ for District No. 14 for Truck Shipments due notice, a hearing was held in this position of the petition .on the merits are amended, effective fifteen (15) days matter, commencing April 21, 1942, be­ in so far as the relief recommended by from the date hereof, by establishing in fore Examiner Scott A. Dahlquist, in the Examiner is applicable to the coals lieu of the present price classifications Port Smith, Arkansas, at which the produced at their mines. Paris Purity, and minimum prices for the coals of Mine above-named intervenors appeared. on the other hand, has indicated by let­ Index Nos. 2, 14, 34, 176, and 195, in Thereafter, D. C. McCurtain was desig­ ter that it would not object to the issu­ certain size groups, those set forth in nated as Examiner vice Dahlquist. ance of such an order, nor to dismissal Supplement R and Supplement T, which On April 7,1943, the Examiner filed his of the entire proceeding, but it does ob­ supplements are hereinafter set forth Report in this proceeding. He recom- ject to a revision of prices for coals pro­ and hereby made a part hereof. duced at its mine without affording it It is further ordered, That the petition 1 The petition was amended at the hear­ ing, on motion of petitioner, by eliminating an opportunity to present oral argu­ is dismissed effective midnight August 23, the request for revision of the price classi­ ment to the Director, its application for 1943, in so far as it relates to revisions fications and minimum prices of the coals oral argument having been previously of the classifications and minimum of a seventh mine, Mine Index No. 553 (Lewis granted. prices of the coals produced at Mine In­ Excelsior Mine) of the Lewis Excelsior Coal Although a motion for severance of dex No. 511 of the Paris Purity Coal Com­ Company (T. E. Lewis). that portion of the docket relating to 2 Mine names and code member names price changes for coals produced at the pany. listed here vary, in several cases, from those Group 1 mines was denied by me July 6, Date: July 24, 1943. listed in the petition. The designations listed [seal] D an H. W heeler, conform with the current official records of 1943, the case has assumed a new com­ Director. the Division. plexion by reason of the fact that it now 10892 FEDERAL REGISTER, Thursday, August 5, 1943

District No. 14 Note: The material contained n these supplements is to be read in the light of the classifications, prices, instructions, exceptions and other provisions contained in Part 334, Minimum Price Schedule for District No. 14 and supplements thereto. FOR RAIL SHIPMENTS § 334.5 Alphabetical list of code members—Supplement R [Alphabetical list of code members showing price classification, by size group for all uses except railroad locomotive fuel]

M P i 9 • •P

* Previously classified for these size groups. No changes requested.

FOR TRUCK SHIPMENTS § 334.24 General prices for shipment into all market areas—Supplement T

Prices and size group Nos. Code member index No. 1 Mine County 4 £ 6 7 8 9 10 11 12 13 14 15 16 17 18 Mineindex

Boyd-Sicard Coal Co... 14 Sebastian. 475 475 475 475 450 ft (*) (*) (*) Excelsior Thin Vein Coal Company, 34 Barr______1...... Sebastian. 475 8 (*) (*) (*) 375 Inc. 475 475 475 450 n n (*) (*) (*) (*)- .(*) (*) 375 Harper, W. T. (Harper-Excelsior Coal 195 Gary..______Sebastian. Company). 475 .... 475 475 475 450 400 385 <*) 230 (*) C) C) 215 375 Peerless Coal Company c/o W. H. 176 Peerless # 2 .______Sebastian. Lewis. 475 .... 475 475 475 450 (*) C) (*) (*) (*) (*) C) n 375 Watson Excelsior Coal Co. c/o T. W. 2 Watson Excelsior . . Sebastian. 475 Watson. 475 475 475 460 (*) <*) (*) (*) (*) C) (*) (•) 875

•Previously priced for these size groups. No changes requested. [F. R. Doc. 43-12564; Filed, August 3, 1943; 10:22 a. m.]

TITLE 32—NATIONAL DEFENSE (3) “High-speed steel” means alloy representation to the producer and to Chapter IX—War Production Board tool steel of either of the following the War Production Board that the steel classes: ordered will be used only for one or more Subchapter B—Executive Vice Chairman (i) “Class A high-speed steel” means of the above purposes. Authority: Regulations In this subchapter either alloy steel containing not less than (c) Producers’ forms. Each producer issued under P.D. Reg. 1, as amended, 6 FJR. .60% carbon and more than 3.0% molyb­ shall file monthly with the War Produc­ 6680; W.P.B. Reg. 1, 7 F.R. 561; E.O. 9024, 7 denum; or alloy steel containing not tion Board, Ref.: M-21-h, melting sched­ F.R. 329; E.O. 9040, 7 F.R. 527; E.O. 9125, 7 F.R. less than .60% carbon, 6.0% or less tung­ ules on form PD-440. The War Produc­ 2719; sec. 2 (a), 54 Stat. 676, as amended by sten, and more than 3.0% molybdenum. tion Board may make such changes in 55 Stat. 236 and 56 Stat. 176. (ii) “Class B high-speed steel” means any melting schedule as shall seem ap­ Part 962—Iron and Steel alloy steel containing not less than .55% propriate and may from time to time carbon and more than 12.0% tungsten. [Supplementary Order M-21-h as Amended issue supplementary, directions with re­ August 4, 1943] Other alloying elements may be pres­ gard to melting of tool steel. ent in the high-speed steels of either (d'1 Melting and deliveries of tool TOOL STEEL class, but steel not containing the ele­ steel. Except pursuant to specific au­ § 962.9 Supplementary Order M- ments named, in the amount specified, thorization in writing by the War Pro­ 21—h—-(a) Definitions. For the purpose shall not be deemed high-speed steel. duction Board, tool steel shall be melted of this order: (4) “Eroducer” means any person who and delivered as follows: (1) “Tool steel” means any steel to be melts tool steel. (1) Each producer shall melt tool steel used for the manufacture of tools* for use (b) Purchasers’ statements. In ad­ in accordance and only in accordance in mechanical fixtures for cutting, shap­ dition to any statement required by Gen­ with such melting schedules as are ap­ ing, forming, and blanking of material, eral Preference Order M-21, on and after proved by the War Production Boarrf or either hot or cold, or for precision May 1, 1943, every order placed with a such supplementary directions as may gauges. It is not deemed to include steel producer for steel to be used for the from time to time be issued by the War for use as shanks in the manufacture manufacture of tools for use in mechan­ Production Board. of tipped or welded tools or for hand ical fixtures for cutting, shaping, form­ (2) Each producer shall deliver tool tools such as chisels, pliers, screw drivers, ing of blanking of material, either hot or steel on an order and only on an order wrenches, centering punches and nail- cold, or for precision gauges, shall in­ for which the melting has been spe­ sets. clude the statement, “This is an order cifically authorized or directed by the (2) “Alloy steel” means alloy steel as for ‘tool steel’ ”, over the signature, either War Production Board. defined in paragraph (a) of Supple­ manual or as provided in Priorities Reg­ - (e) Special instructions. The War mentary Order M-21-a. ulation No. 7, of a duly authorized official Production Board may from time to of the purchaser, which will constitute a time issue directions as to facilities to be FEDERAL REGISTER, Thursday, August 5, 1943 10893 in part by the use of material, including by him during the second calendar quar­ used in production and directions speci­ ter of 1942. fying as to any alloying element the ore, ferro alloys, and alloy-bearing scrap, (j) Violations. Any person who wil­ quantities and proportions which may furnished by such customers shall be fully violates any provision of this order, be used in making tool steel, and whether subject to all the restrictions and provi­ or who, in connection with this order, and in what proportions any such ele­ sions of this order. wilfully conceals a material fact or fur­ ment is to be the metal, a ferroalloy, (7) The foregoing provisions of this nishes false information to any depart­ reclaimed metal, scrap, a chemical com­ paragraph (g) do not authorize the pur­ ment or agency of the United States, is pound or any other material containing chase or acquisition of Class A high­ guilty of a crime, and upon conviction such element. speed steel for the purpose of obtaining may be punished by fine or imprison­ (f) Restrictions of deliveries under complementary quantities of Class B ment. In addition, any such person may toll agreements. Except pursuant to high-speed steel when the Class A high­ be prohibited from making or obtaining specific authorization in writing by the speed steel being purchased or acquired further deliveries of, or from processing W9J>Production Board, no person shall will not be put into productive use within or using, material under priority control make or accept delivery under any toll the time limits allowable by applicable and may be deprived of priorities assist­ agreement whereby one person melts tool War Production Board inventory regula­ steel for another person. ance. (g) Melting and deliveries of high­ tions. (k) Appeal. Any appeal from the pro­ speed steel. Except pursuant to specific (h) Exceptions to restrictions on de­ visions of this order shall be made by authorization in writing by the War Pro­ liveries of high-speed steel. The pro­ filing a letter in triplicate, referring to duction Board visions of paragraphs (g) (4) and (5) the particular provision appealed from (1) No producer shall m elir high-speed with respect to maximum permitted pur­ and stating fully the grounds gf the ap­ steel except within the limits below speci­ chases and deliveries of Class B high­ peal. fied for the following elements: speed steel shall not apply to: (l) Communications. All communica­ (1) Deliveries of high-speed steel to (i) Class A high-speed steel: tions concerning this order shall, unless any person whose total receipts of high­ otherwise directed, be addressed to: War Co. speed steel from all producers does not Grade c. Cr. W. Mo. V. exceed 100 lbs. per calendar quarter. Production Board, Steel Division, Wash­ ington 25, D. C.; Ref.: M-21-h. Min. Max. Max. Max. Max. (2) Deliveries of high-speed steel to 1 ...... 60 4.5 6.0 5.0 1.6 0.0 any person whose total receipts of high­ Issued this 4th day of August 1943. 5.0 1.9 3.5 Min. I c ...... 60 4.5 6.0 speed steel from any producer in any W ar P r o d u c t io n B oard, I I ...... 60 4.5 1.8 8.75 1.2 0.0 he...... 60 4.5 1.8 8.76 1.9 3.5 Min. calendar quarter balance within 5%, by By J . J o s e p h W h e l a n , fit .60 4.5 8.75 1.9 0.0 weight, or 500 lbs., whichever is the Recording Secretary. .60 4.5 8. 75 1.9 3.5 Min. lesser, of the permissive ratio of Class B high-speed steel to total high-speed [F. R. Doc. 43-12638; Filed, August 4, 1943; (ii) Class B high-speed steel: steel. 11:16 a. m.] (i) Melting and deliveries of Class A Grade C. Cr. W. Mo. V. Co. high-speed steel. Except pursuant to specific authorization in writing by the P art 962— Iron and S teel Min. Max. Max. Max. 4.5 19.0 0.0 1.10 0.0 War Production Board: TV .55 3. 5 Min. IVc— - .55 4.5 22.0 1.1 Max. 1.90 (1) On and after December 1, 1942, [Direction 1 to Supplementary Order M-21-h] no producer shall melt during any cal­ (2) No producer shall melt in any endar month Class A high-speed steel, USE OF VANADIUM IN MELTING ALLOY TOOL calendar quarter, Class B high-speed grades II and III, in excess of 30% of STEELS steel which will exceed, in the aggregate, the monthly average tonnage of such The following Direction 1 is issued pur­ by weight. 35% of* the total high-speed Class A high-speed steel melted by him suant to Supplementary Order M-21-h. during the second calendar quarter of steel melted by him in such quarter. Except pursuant to specific authorization 1942. or direction of the War Production Board, no (3) No person shall place an order (2) On and after January 1, 1943, no producer shall use vanadium in the melting with a producer or any other person for person shall accept for delivery from a of alloy tool steel except 'within the limits Class B high-speed steel if Class A high­ producer during any calendar quarter below specified: speed steel would reasonably fulfill his Class A high-speed steel, grades II and Grades I-IVc, High speed steel: In accord­ requirements. in , in excess of 35% of the amount of ance with paragraph (g) of Order M-21-h. (4) No person shall place with a pro­ such Class A high-speed steel received Grade V, Hot work steels: ducer, and no producer shall accept, in any calendar quarter orders for Class B Cr W Mo high-speed steel which will exceed, in Mn .30/.40 the aggregate, by weight, 35% of the .15/.45 3.50/4.50 16.00/18.00 .25/. 55 .15/.45 13.00/15.00 .30/.40 total high-speed steel ordered by such .25/. 55 .15/.45 .15/.45 2.50/4.50 .30/.40 .15/.45 .15/.45 2.50/4.50 10.00/ 12.00 .25/. 55 2.50/4.50 7.50/ 9.50 .30/.40 person from such producer during such .25/. 55 .15/.45 .15/.45 1.00/1.50 .30/.40 quarter. This provision does not apply .30/.45 .20/.75 .80/1.35 4.50/6.00 to the placement of orders for high- irade VI, High chrome die steels; No vanadium permissible, speed steel with warehouses. jrade VII, All other alloy tool steels: (5) No person shall accept from pro- ducers in any calendar quarter, deliveries 1.00/1.50 /. 30 max. . 15/. 25 1.00/1.30 . 15/. 40 .10/. 45 .25/. 80 . 15/. 25 of Class B high-speed steel which will . 60/1.35 .10/. 45 . 10/. 45 /. 50 max. .15/. 25 exceed in the aggregate, by weight, 35% .45/. 70 . 30/1.20 ,70/2.25 /. 50 max. .15/. 25 .20/. 90 .15/. 65 .60/1.10 of the total deliveries of all high-speed .40/1.00 steel made to him by all producers dur­ Issued this 4th day of August 1943. ing such quarter. This provision does W ar P r o d u c t io n B oard, not apply to deliveries of high-speed By J . J o s e p h W h e l a n , steel by warehouses. Recording Secretary. (6) Customers’ orders for high-speed steel which are to be filled in whole or 10894 FEDERAL REGISTER, Thursday, A ugust 5, 1943

P art 1010—S uspension Order ence rating assigned by CMPL-150 issued high-flash naphtha at any time, or high- [Suspension Order S-301] May 20, 1943 and CMPL-200'issued June flash naphtha on and after September 1, 4, 1943. B. SIMON HARDWARE CO. ORDER FOR STAY OF 1943, and no person shall accept such EXECUTION (d) Nothing contained in this order delivery, except as specifically author­ shall be deemed to relieve Vernon S. ized in writing by the War Production § 1010.301 Stay of execution of Sus­ Beck, individually, or doing business as Board upon application pursuant to pension Order S-301. (a) The provi­ Beck Engineering Company, or other­ paragraph (f). sions of the Suspension Order S-301 shall wise, from any restriction, prohibition or (2) No person, including a producer be stayed and shall be of no force or provision contained in any other order or distributor, shall use aromatic pe­ effect until further order of the War or regulation of the War Production troleum solvents other than high-flash Production Board. Board, except in so far as the same may naphtha at any time or high-flash naph­ Issued this 3rd day of August 1943. be inconsistent with the provisions of tha on and after September 1, 1943, ex­ this order. cept as specifically authorized in writing W ar P roduction B oard, (e) This order shall take effect on Au­ by the War Production Board upon ap­ By J. J oseph W helan, gust 4, 1943, and shall expire on Sep­ plication pursuant to paragraph (f). Recording Secretary. tember 30, 1943. (3) Each person accepting delivery of [F. R. Doc. 43-12637; Filed, August 4, 1943; Issued this 4th day of August 1943. any aromatic petroleum solvent pursu­ 11:21 a. m.j ant to specific authorization of the War W ar P roduction B oard, Production Board shall use such aro­ B y J. J oseph W helan, matic petroleum solvent only for the Recording Secretary. purposes specified in such authorization. P art"1010— S uspension O rders [F. R. Doc. 43-12640; Piled, August 4, 1943; (4) Each person affected by this order [Suspension Order S-395] 11:17 a. m.] shall comply With such directions as may* be given from time to time by the War BECK ENGINEERING COMBUSTION KOMPANY Production Board, with respect to the use or delivery by such person of any Vernon S. Beck is engaged in business P art 1227—Aromatic P etroleum as a manufacturer and fabricator of aromatic petroleum solvent. furnaces under the firm name of Beck S olvents (c) Small order exemptions. Notwith­ Engineering Combustion Kompany, 3033 [Allocation Order M-150 as Amended August standing the provisions of paragraphs Spruce Street, St. Louis, Mo. During the 4, 1943] (b) (1) and (2): fourth quarter of 1942 he extended rat­ The fulfillment of requirements for the (1) Any person may, without specific ings to obtain deliveries and accepted defense of the United States has created authorization, accept delivery from all deliveries of over 40 tons of carbon steel a shortage in the supply of aromatic suppliers, and use for any purpose, 60 in excess of quantities authorized on his petroleum solvents for defense, for pri­ gallons or less of aromatic petroleum PD-25-A certificate. This was in viola­ vate account and for export; and the solvents in any calendar month. tion of Priorities Regulation No. 11. In following order is deemed necessary and (2) Any person may, without specific January and February, 1943, he put into appropriate in the public interest and authorization, accept delivery of 550 gal­ production and completed six furnaces to promote the national defense: lons or less of aromatic petroleum solv­ without having obtained approval from ents other than high-flash naphtha, in­ the War Production Board in violation § 1227.1 Allocation Order M-150— (a) cluding quantities received pursuant to of Limitation Order L-22-A. Vernon S. Definitions. For the purposes of this paragraph (c) (1) above, from all sup­ Beck had knowledge of Priorities Regu­ order: pliers during any calendar month, and lation No. 11 and of Limitation Order (1) “Aromatic petroleum solvents” may use these solvents only as follows: Lc-22-A and the aforesaid violations were means solvents or naphthas of petroleum (i) Toluene range aromatic petroleum wilful. oiigin, other than benzol and toluol, con­ solvents only for barrage balloon cloth These violations of Limitation Order taining more than 30% by volume of aro­ treatment, aircraft finishes, synthetic L-22-A and of Priorities Regulation No. matic hydrocarbons as determined by the rubber manufacture and processing, or 11 have hampered and impeded the war analytical procedure described as “Prox­ impregnation of wire and cable coat­ effort of the United States. In view of imate Analysis of Hydrocarbon Thin- ings. the foregoing: It is hereby ordered, That: ners” published in the Scientific Section (ii) Aromatic petroleum solvents Circular No. 568 of the National Paint, other than toluene range solvents only § 1010.395 Suspension order No. Varnish and Lacquer Association, No­ for the uses listed in Schedule A annexed S-395. (a) Deliveries of material to vember, 1938, pages 381-388, and having hereto. Vernon S. Beck, individually, or doing A. S. T. M. 50% distillation point lower business as Beck Engineering Combus­ than 330° F. (3) Authorization by the War Pro­ tion Kompany, or otherwise, his or its duction Board is required for any pro­ Such term also includes all grades of ducer or distributor to make such small successors or assigns, shall not be ac­ xylol, regardless of whether derived from corded priority over deliveries under any order deliveries, upon application pursu­ petroleum, coal tar or other sources, and ant to paragraph (f) requesting ^in ag­ other contract or order and no prefer­ includes high-flash naphtha as defined ence ratings shall be assigned, applied in the next paragraph. gregate quantity of aromatic petroleum or extended to such deliveries by means solvents for small orders. (2) “High-flash naphtha” means water (d) Special exemption. The restric­ of preference rating certificates, prefer­ white coal tar solvent naphtha, refined ence rating orders, general preference tions provided for in paragraph (b) (1) from coke oven light oil, coal tar distil­ hereof shall not apply to, and the spe­ orders, or any other order or regulation late, drip oils or holder oils. of the War Production Board, unless cific authorization provided for in para­ (3) “Producer” means any person en­ graph (b) (2) hereof, shall not be hereafter specifically authorized in writ­ gaged in the production of aromatic pe­ ing by the War Production Board. required with respect to, delivery to, or troleum solvents and includes any per­ acceptance of delivery or use by, any (b) No allocation or allotment shall be son who has such materials produced for made to Vernon S. Beck, individually, or person of any intermediate fraction for him pursuant to toll agreement. the manufacture of any aromatic pe­ doing business as Beck Engineering (4) “Distributor” means any person Combustion Kompany, or otherwise, his troleum solvents. or its successors or assigns, of any ma­ who purchases or has purchased aro­ (e) Production of aromatic petroleum terial or product, the supply or distribu­ matic petroleum solvents for resale, ex­ solvents. Each producer shall comply tion of which is governed by any order cluding, however, any person who sells with such directions as may be given of the War Production Board, unless aromatic petroleum solvents only in con­ from time to time by the War Produc­ tainers of capacities of sixty (60) gallons tion Board with respect to the produc­ hereafter specifically authorized in writ­ or less. ing by the War Production Board. tion of any aromatic petroleum solvent. (c) Nothing contained in this order (b) Restrictions on use and delivery of (f) Applications and reports, (i) The aromatic petroleum solvents. (1) No following instructions for filling out shall prevent deliveries of materials producer or distributor shall deliver aro­ made pursuant to allotment or prefer­ Forms WPB 2945 (formerly PD-600) and matic petroleum solvents other than WPB 2946 (formerly PD-601) are in- FEDERAL REGISTER, Thursday, A ugust 5, 1943 10895 Columns 9 and 10. Leave blank, except this order as amended, but failure to re­ tended to clarify but not to alter the for remarks, if any, in Column 10. ceive such notice shall not excuse any practice previously followed in alloca­ Table II. Fill in as indicated for each grade person from complying with the terms tions under this order. or solvent listed in Column 1 of the appli­ hereof. (2) Each person seeking authoriza­ cation. (1) Miscellaneous provisions—(1) Ap­ tion to use or accept delivery of aro­ Table III. Fill in as indicated. plicability of regulations. This order and matic petroleum solvents shall file ap­ Table IV. Leave blank. all transactions affected hereby are sub­ plication on Form WPB 2945 (formerly (3) Each producer and distributor ject to all applicable War Production PD-600) in the manner prescribed there­ shall apply for authorization to make Board regulations, as amended from in, subject to the following instructions deliveries of aromatic petroleum solvents time to time. for the purpose of this order: on Form WPB 2946 (formerly FD-601) (2) Intra-company deliveries. The Form WPB 2945. Copies oi Form. WPB in the manner prescribed therein, sub­ prohibitions and restrictions of this or­ 2945 (formerly PD-600) may be obtained at ject to the following instructions for der with respect to deliveries of aromatic local field offices of the War Production the purpose of this order: petroleum solvents, shall apply not only Board. Form WPB 2946. Copies of Form WPB 2946 to deliveries to other persons, including Time. Applications shaU be made in time (formerly PD-601) may be obtained at local affiliates and subsidiaries, but also to de­ to ensure that copies will have reached the field offices of the War Production Board. liveries from one branch, division or sec­ supplier and the War Production Board on Time. Application shall be made in time tion of a single enterprise to another or before the 10th day of the month preceding to ensure that copies will have reached the branch, division or section of the same the month for which authorization to use or War Production Board on or before the 15th or any other enterprise under common accept delivery is requested, if the supplier day of the month preceding the month for is a producer, on or before the 5th day if ownership or control. which authorization to make delivery is (3) Violations. Any person who wil­ the supplier is a distributor. sought. Number of copies. Five copies shall be Number of copies. Four copies shall be fully violates any provisions of this or­ prepared, of which one shall «be retained by prepared, of which one shall be retained by der, wilfully conceals a material fact, or the applicant, one'(with Tables n, in and the applicant and three certified copies shall furnishes false information to any de­ IV left blank) shall be forwarded to the be forwarded to the War Production Board, partment or agency of the United States supplier, and three completely filled out cer­ Washington, D. C., Reference M-150. is guilty of a crime, and upon conviction tified copies shaU be forwarded to the War Number of sets. A separate set of forms may be punished by fine or imprison­ Production Board, Chemicals Division, Wash­ ghn.ii be filed for each plant or distribution ment. In addition, any such person may ington, D. C., Reference M-150. point. Number of sets. A separate set of WPB A separate set of forms shall be submitted be prohibited from making or obtaining 2945 (formerly PD-600) application blanks for each type of solvent. further deliveries of or from processing shall be submitted for each supplier, and for Heading. Under name of chemical, specify or using, material under priority control each plant of the applicant. type of aromatic petroleum solvent; under and may be deprived of priorities assist- Heading. Under name of chemical specify War Production Board order number, specify anC0# aromatic petroleum solvents; under War Pro­ M-150; specify allocation month; under unit (4) Communications to War Produc­ duction Board order number, specify M-150; of measure, specify gallons; and otherwise fill tion Board. All reports required to be under unit of measure, specify gallons; and in as indicated. filed hereunder and all communications otherwise fill in as indicated. Columns 1, 2, 3, 4 and 5. Fill i: as indi­ Table I. Specify in the heading the month cated Each customer who has filed Form concerning this order, shall, unless oth­ and year for which authorization for ac­ WPB 2945 (formerly PD-600) with the pro­ erwise directed, be addressed to: War ceptance of delivery or use is requested. ducer or distributor (including the producer Production Board, Chemicals Division, Column 1. Specify trade name and num­ himself if he consumes part of his own pro­ Washington, D. C., Reference: M-150. ber or letter, except in the case of xylol, in duction) shall be listed in Column 1. Col­ Issued this 4th day of August 1943. which case specify “xyol” and the degrees of umn 5 is optional. At the end of the list of range or other common identification. customers, application may be made for ag­ W a r P r o d u c t io n B oard, Column 2. Specify gallons of aromatic gregate small order deliveries pursuant to By J . J o s e p h W h e l a n , petroleum solvents requested for each pri­ paragraph (c) (4). Recording Secretary. Columns 5a, 6 and 7. Leave blank, except mary product and product use specified in Schedule A Columns 3 and 4. for remarks, if any, in Column 7. Rolling stock requirements. The colunins Column 3, Fill in as follows: A. Military: relating to number of hopper cars and tank 1. All arms and weapons. Paint, varnish, lacquer. cars required may be left blank. 2. Firing control equipment. Flameproof composition. Table II. Fill in as indicated for each grade 3. Ammunition and ammunition boxes. Natural and synthetlc~rubber solution. of solvent listed in Column 3, and leave Col­ 4. Pyrotechnics. General solvents. umn 16 blank. 5. Tanks, Jeeps, peeps and parts. Dyestuffs! 6. Paulins and engine covers. (4) The War Production Board may 7. Cam ouflage p a in t. Intermediates. require any person affected by this order 8. Chemical resistant finishes for Other organic chemical. to file such other reports as may be pre­ arsenals. Other (specify). scribed, subject to the approval of. the 9. Fort, barrack, arsenal, camp, canton­ Resale (in original form). Bureau of the Budget pursuant to the ment, & Navy yard finishes. Federal Reports Act of 1942, and may is­ 10. Special naval cable. Export (in original form)'. 11. Special electronic equipment. Inventory (in original form). sue special instructions to any such per­ son with respect to filing Form WPB 12. Signal corps equipment. Column 4. Opposite each primary product 13. Canteen and blitz cans. listed in Column 3, specify in Column 4 2945 (formerly PI>-600) and Form WPB B. Aircraft: * the product end use and governing military 2946 (formerly PD-601). Form WPB Finishes for aircraft and aircraft parts. or Lend-Lease contract or specification num­ 2945 and Form WPB 2946 have been C. Transportation: ber, if any. In describing end use the appli­ approved by the Bureau of the Budget 1. Ships and vessels, construction and cant may bo guided by end use lists issued pursuant to the Federal Reports Act of maintenance and parts. by the Chemicals Division for the guidance 1942. 2. Barges. of protective coating manufacturers. (g) Allocations for inventory. Aro- 3. Plywood watercraft. Opposite “Resale” or “Inventory” in 4. Dry docks. matic petroleum solvents allocated for 5. Buoys. Column 3, write in Column 4 "subject to inventory shall not be used for any pur­ 6. Hawsers (cables). further authorization”, or specify “deliveries pose, except as specifically directed by 7. Life preservers and jackets. exclusively in containers of 60 gallons or the War Production Board or except to 8. Motors, engines, and generators. less”. fill orders for authorized uses pending 9. Railway equipment parts, and mainte­ Opposite “Export” in Column 3, specify arrival of the solvent allocated to fill nance (other than freight cars). in Column 4 the narpc of the individual 10. Railroad military cars. company or governmental agency to whom such orders. Upon arrival of such solv­ 11. Ambulances. or for whose account the solvents will be ents, the allocated inventory shall be re­ 12. Trucks. exported, the country of destination and stored. 13. Automobiles. governing export license or contract num­ (h) Notification of customers. Each 14. Trailers. bers, unless Lend-Lease, in which case producer and distributor is requested to 15. Motorcycles, bicycles and other ve­ notify each of his regular customers as hicles. merely specify the Lend-Lease contract or ¿6. Brake shoes and linings. serial number. soon as possible of the requirements of No. 154------6 10896 FEDERAL REGISTER, Thursday, A ugust 5, 1943 D. Communications and utilities: L. Industrial operations and equipment: 1. Searchlights. 1. Hoists, cranes, derricks and conveyors. (1) In place of any certificate required 2. Military lanterns and flashlights. 2. Stationary motors. to apply or extend preference ratings or 3. Light bulbs. 3. Elevator equipment. allotment numbers or symbols. 4. Cable core. 4. Oil refinery equipment (petroleum (2) In place of a WPB-2945 (formerly 5. Cable and wire insulation. equipment operations). PD-600) application form or any similar 6. Bonding mica for insulation. 5. Plating and chemical equipment. 7. Electric motors and generating equip­ form. ment. 6. Textile machinery. (3) In any case where the applicable 8. Batteries. 7. Industrial adhesives. WPB order expressly prohibits use of the 9. Battery cables. 8. Machine tools. chemical except for one or moro pur­ 10. Radio cabinets and boxes (military 9. Power and transmission equipment. poses which are specified in the WPB only). [F. R. Doc. 43—12642; Filed, August 4, 1943; order, and where the WPB order requires 11. Radio tubes. — 11:16 a. m.] 12. Other radio parts (military only) that purchase orders carry a certificate 13. Antenna masts. specifying one of the permitted uses; for 14. Telephone & Telegraph equipment. example, the Quinine Order, M-131. 15. Gas, power & light plant operations (f) Separate small order exemptions equipment. Part 3119—R eagent Chemicals for laboratories. Each laboratory shall 16. Central heating plant operational [Supplementary Order P-13&-a] be considered a- separate person for the equipment. purpose of the small order exemption 17. Water supply plant operational equip­ §3119.2 Supplementary Order ment. P—135—a—(a) What this order does. provisions of WPB chemicals orders, and 18. Water tanks. This order provides a standard form of therefore shall be entitled to the full ex­ E. Textiles and textile treating: certification for laboratories ordering re­ emption provided by each order. 1. Tent proofing. agent chemicals for analysis, testing, (g) Communications to the War Pro­ 2. Flame proofing (other than tentage). control, educational or research pur­ duction BoUrd. Allv communications 3. Gas proofing. poses. 4. Mildew proofing. concerning this order, shall, unless oth­ 5. Water proofing. This order also provides that each lab­ erwise directed, be addressed to: War 6. Wind proofing. oratory shall be entitled to the full small Production Board, Chemicals Division, 7. Insect cloth. order exemption of each WPB chemicals Washington 25, D. C., Ref: P-I35-a. 8. Chevron cloth. order. 9. Fluorescent coating. (b) Form of certification under small Issued this 4th day of August 1943. 10. Wool pile adhesive. order exemptions. Laboratories and lab­ War Production Board, 11. Wool scouring, other than dry cleaning. oratory suppliers ordering reagent chem­ By J. J oseph Whelan, 12. Leather finishes. icals under the small order exemption Recording Secretary. F. Clothing: ' < provided by any WPB chemicals order, may use this form of certification: [F. R. Doc. 43-12641; Filed, August 4, 1943- 1. Shoe parts (Shoe adhesives, combining 11:17 a. m.] shoe fabrics, shoe uppers, house Pursuant to Order P—135—a, the under­ slipper uppers, platform binding and signed represents to the seller and to the War heel covers, high heel covers, shoe Production Board that the reagent chemicals linings, sock lining on paper heel called for by this purchase order will be used Part 3171—Commercial Dishwashers pads, sock lining on fabric heel pads, or resold for use, in a laboratory for one or innersole binding, house slipper more of the following purposes: Analysis, [Limitation Order L—248 as Amended August soling). testing, control, educational or research. 4, 1943] 2. Flying boots. This purchase order is placed in accordance 3. Gas resistant clothing (including leg­ with the small order exemption(s) provided The fulfillment of requirements for gings and footwear). by the applicable WPB order(s). the defense of the United States has 4. Flame-proof clothing (including leg­ created a shprtage in the supply of iron, gings and footwear). (Name of purchaser) steel and other metals for defense, for 6. Foul weather clothing (including leg­ private account and for export; and the gings and footwear). 6. Raincoats. (Signature and title of duly following order is deemed necessary and 7. Gas masks. authorized official) appropriate in the public interest and 8. Helmets. (c) Form of end use certificate. Lab­to promote the national defense: 9. Helmet liners. oratories and laboratory suppliers order­ § 3171.1 General Limitation Order 10. Waterproof hat and cap covers. 11. Uniforms. ing reagent chemicals may use the fol­ L-248—(a) Definitions. For the pur­ 12. Insignia lowing form of certificate in any case in poses of this order: G. Health safety and scientific uses: which a WPB chemicals order requires a (1) “Commercial, dishwasher” means 1. X-Ray equipment. certificate of end use as a basis for allo­ any mechanical device designed for 2. Pill and tablet coatings. 3. Sutures. cation: washing dishes, cutlery, glassware or 4. Pharmaceutical, medical and surgical Pursuant to Order P—135—a, the under­ kitchen utensils in establishments where supplies (specify). signed represents to the seller and to the War food is prepared for consumption or sale 5. Surgical adhesive tape and plasters. Production Board that the reagent chemicals 6. Collodion. called for by this order will be used, or resold on the premises. The term does not 7. Surgical and medical equipment. for use, in a laboratory for one or more of the include dishwashers designed for do­ 8. Surgical and medical instruments. following purposes: Analysis, testing control mestic use. ~ “ 9. Scientific and precision instruments educational or research. H. Photography: (2) “Ultimate consumer” means any 1. Photographic equipment. (Name of purchaser) person who uses a commercial dish­ 2. Photographic supplies. B y ______washer for washing dishes, cutlery, glass­ I. Printing, publishing and engraving: (Signature and title of duly ware and kitchen utensils. 1. Gravure ink. authorized official) (3) “New commercial dishwasher” 2. Aniline inks. means any commercial dishwasher J. Containers and packaging: Attention is drawn to the fact that the which has never been used by an ulti­ 1. Food packaging (containers, closures above end use certificate is the same as mate consumer. and linings). the small order certificate with the last 2. Gasoline and water drums. sentence struck out. (4) “Used commercial dishwasher” 3. Cellophane. means any commercial dishwasher 4. Capsules. (d) Optional use of certificate. The which has been used by an ultimate con­ 5. Seam sealing of containers. above standard certificate is optional. sumer. 6. Heat sealing compound. The certificate specified in the applicable (5) “Copper base alloy” means any al­ K. Chemical uses: WPB chemicals order may be used in­ 1. Vitamin synthesis. stead, and it is not necessary to use any loy metal in the composition of which 2. De-hydrating agents. certificate if the applicable WPB chemi­ the percentage of copper metal by weight 3< Synthetic rubber. cals order does not require a certificate. equals or exceeds 40% of the total weight 4. Dyestuff and intermediates. of the alloy. It shall include alloy metal (e) When the certificate may not be produced from scrap. B. Rust preventatives. used. The above certificate may not be 6. Alkyd resins (mfgr. only)). used: (b) Restrictions on manufacturé. No manufacturer of commercial dishwash- FEDERAL REGISTER, Thursday, A ugust 5, 1943 10897 with the War Production Board on or ers shall put into process in the manu­ reason to believe that such statements are inaccurate or untrue; before the tenth day of each calendar facture of such dishwashers, including quarter a report on Form WPB—1509 finished units and parts thereof, during (4) Any ultimate consumer may make any calendar quarter, a weight of metal physical delivery of any such dishwasher (formerly PD-638), which may be ob- in excess of six and one quarter percent to any manufacturer, dealer or distrib­ tained from the nearest field office of (6%%) °f the weight of metal put into utor of such dishwashers; and such the War Production Board. Reports un­ process in the manufacture of finished manufacturer, dealer, or distributor may der this order and order L-182 may be commercial dishwashers by him during accept such delivery; made on a single Form WPB-1509 (for­ the calendar year 1941 except that in (5) Any such dishwasher actually in merly PD-638). addition to the quotas set forth in this transit on March 2, 1943, may be deliv­ (h) Applicability of priorities regula­ paragraph any manufacturer may put ered to its immediate destination; and (6) Any such dishwasher manufac­ tions. This order and all transactions any weight of metal into process in the affected thereby are subject to all appli­ manufacture of any such dishwashers tured in accordance with an appeal cable provisions of all the priorities reg­ for delivery to or for the account of the granted prior to March 2, 1943, may be physically delivered to the person speci­ ulations of the War Production Board, Army, the Navy, the Maritime Commis­ as amended from time to time. sion, or the War Shipping Administra­ fied in the appeal, and such person may (i) Applicability of other orders. In­ tion’of the United States. accept delivery of such dishwasher. sofar as any other order issued, or to be (c) Restrictions on delivery. Regard­ (d) , Delivery of repair and replace­issued hereafter, limits the production or less of the terms of any contract, sale, ment parts. Nothing in this order shall delivery of commercial dishwashers to a other commitment or any preference prevent the delivery of repair or re­ placement parts for commercial dish­ greater extent than the limits imposed by rating, no person shall make or ^accept this order, the restrictions in such other physical delivery of any new or used washers. (e) Simplified practices. No person order shall govern unless otherwise speci­ commercial dishwashers except that: fied therein. (1) Any person may make or accept shall manufacture, fabricate or assem­ (j) Appeals. Any appeal from the physical delivery of any such dishwasher ble any commercial dishwasher designed provisions of this order shall be made by on a specific contract or subcontract for for washing cutlery, glassware or kitchen filing a letter, in triplicate, referring to delivery to or for the account of the utensils exclusively. No person shall the particular provision appealed from Army, the Navy, the Maritime Commis­ manufacture, fabricate or assemble any and stating the grounds of the appeal. sion, or the War Shipping Administra­ (k) Communications to War Produc­ tion of the United States; other type of commercial dishwasher tion Board. All reports required to be (2) Any person may make or accept except in accordance with the specifica­ filed hereunder, and all communications physical delivery of any such dishwasher tions and practices given below in this concerning this order, shall, unless other­ pursuant to specific authorization of the paragraph. However, this paragraph wise directed, be addressed to the War War Production Board on Form WPB- does not revoke or modify the terms Production Board, Plumbing and Heat­ 1529 (formerly PD-638A). Applications of any appeal granted under this order. ing Division, Washington (25), D. C., under this order and Order L-182 may Ref: L-248.' be made on a single Form WPB-1529 ( 1) (l) Violations. Any person who wil­ (formerly PD-638A) ; fully violates any provision of this order (3) Any manufacturer may make phys­ Maximum content *or who, in connection with this order, ical delivery of any such dishwasher to exclusive of motor, wilfully conceals a material fact or fur­ any dealer or distributor of such tiish- Minimum switches and wiring Maximum capacity (pounds) motor nishes false information to any depart­ washers, or to any ultimate consumer, (dishes per size

that the equipment will for the present be corporation, or any organized group of (h) Applicability of other orders and used solely fqr the benefit of the personnel persons (whether incorporated or not), regulations. (1) Nothing in this order assigned to the school. Such a delivery is any air carrier holding’a certificate of not made on a specific contract or subcon­ shall be construed to relieve any person tract for delivery to-or for the account of necessity from the Civil Aeronautics from complying with any applicable reg­ the Army within the meaning of the provi­ Board, any state or local governmental ulation or order of the War Production sion quoted above. Accordingly, any train­ agency, any United States Governmen­ Board (including orders in the “E”, “L”, ing school desiring to purchase this equip­ tal Agency, other than the Army or Navy and "M” series) or with any order of any ment under these circumstances must apply of the United States, engaged in the op­ other competent authority. on Form WPB 1529 formerly Form PD-638A eration of aircraft, or in the business of (2) No operator may acquire material .for authorization. (Issued April 24, 1943.) maintaining or repairing aircraft. Op­ by. use of any preference rating or allot­ erator, as herein defined, may include ment symbol assigned by any order in [F. R. Doc. 43-12643, Filed, August 4, 1943; foreign operators and domestic operators » the “P” series except this order, by CMP » 11:16 a. m.] carrying on business outside of the Regulation No. 5 or No. 5A, or on Form United States. PD-408. (c) Application for material. Each (i) Records. Each person acquiring P art 3175—R egulations Applicable to operator may. file Form WPB-1747 in materials, parts, or products, pursuant to the Controlled Materials P lan accordance with the instructions accom­ this order, shall keep and preserve for a [Amdt. 2 to CMP Reg. 1 as Amended May 28, panying the form, for the material, parts period of not less than two years ac­ 1943] and products required for operation of curate and complete records of all such aircraft and aircraft facilities. The War supplies so acquired and used, which Section 3175.1 (t) (3) (iv) of CMP Production Board may approve the ac­ shall, upon request, be submitted to audit Regulation No. 1 is hereby amended to quisition of materials, parts, and prod­ and inspection by duly authorized rep­ read as follows: ucts, and Will assign preference ratings resentatives of the War Production (iv) A delivery to fill, a sample order. for approved materials other than con­ Board. Delivery of a sample order must be sup­ trolled materials, will authorize the use (j) Communications. All communi­ ported by the purchaser’s certificate that of the allotment symbol MRO (P-47) for cations concerning this order should be the material covered by the order will be approved controlled materials, and will addressed to: War Production Board, used by him for testing purposes only in assign a serial number on the form. Washington 25, D. C., Ref. P-47. ' connection with war production. On or­ (d) Restrictions on the acquisition of ders for steel (except stainless steel, tool materials. No operator may apply rat­ Issued this 4th day of August 1943. steel and steel castings), the purchaser ings or use any allotment symbol to ac­ War P roduction Board, must also certify that the total amount quire any material, parts or products in By J. J oseph Whelan, received and on order for delivery within excess of the amounts approved, or at a Recording Secretary. any calendar quarter does not exceed time other than that specified in the approval. [F. R. Doc. 43-12635; Filed, August 4, 1943; 1000 pounds of any composition nor a 11:16 a. m.] total of 3000 pounds of all compositions. (e) Acquisition of materials. Opera­ On orders for other controlled materials tors may obtain materials approved on (including stainless steel, tool steel and Form WPB-1747 by placing on their steel castings) the aggregate amount of purchase orders the following certifica­ Part 3281—P ulp and P aper* any item delivered by any producer to tion, (or the alternative form of certi­ [General Conservation Order M-241 as any one purchaser in any one month fication provided in CMP Regulation No. amended August 4, 1943] shall not exceed 1 percent of the mini­ 7) signed manually or as provided in mum mill quantity prescribed with re­ Priorities Regulation No. 7: PAPER AND PAPERBOARD spect to such item in Schedule IV of this BpiO (P-47 Serial Number ----- ) [insert Section 3096.1 General Conservation regulation. Preference Rating], The undersigned certi­ Order M-241, as amended July 14, 1943, fies, subject to the criminal penalties for is hereby amended to read as follows: Issued this 4th day of August l943. misrepresentation contained in section War Production Board, 35(A) of the United States Criminal Code, § 3281.631 General Conservation Or­ By J. J oseph Whelan, that the items covered by this order are der M-241—(a) Applicability of regula­ Recording Secretary. within the amounts approved by the* War tions. This order and all transactions Production Board under Preference Rating affected thereby are subject to all ap­ [F. R. Doc. 43-12644; Filed, August 4, 1943; Order P-47, and are to be used for a purpose plicable regulations of the War Produc­ 11:16 a. m.] so approved. Name______tion Board, as amended from time to By------time. Authorized official. (b) Definitions. For the purpose of P art 3191—Civilian Aircraft Date. this order: (1) "Person” means any individual, [Preference Rating- Order P-47 as Amended A purchase order bearing this cer­ August 4, 1943] partnership, association, business trust, tification shall be deemed an authorized corporation, governmental corporation Limited Preference Rating Order P-47 controlled material order for the purpose or agency, or any organized group of per­ Is hereby amended to read as follows: of all CMP Regulations. sons whether incorporated or not. (f) Penalties for misrepresentation. § 3191.21 General Preference Rating (2) “Produce” includes all operations (1) The placing of any order bearing a involved in the manufacture of paper or Order P-47—(a) Purpose and scope. certification or symbol, as provided by The purpose of this order is to provide paperboard in primary roll or sheet form, this order, shall constitute a representa­ and only includes secondary operations persons operating civilian type aircraft tion, subject to the criminal penalties of with a uniform procedure for obtaining when such operations are performed by section 35(A) of the United States Crim­ an integral part of the paper machine material for the operation of aircraft inal Code (18 U. S. C. 80), that the person and aircraft facilities, both in the. case of (Yankee, Harper, Fourdrinier, Cylinder, placing the order is entitled, under the or Wet Machine). controlled materials obtained by use of terms of this order, to use of the symbol allotment symbols under the Controlled (c) Restrictions on production of or preference rating indicated thereon. paper and paperboard. Unless spe­ Materials Plan, and in the case of ma­ (g) Inventory restrictions. No per- terials or products, including compo­ cifically authorized by the War Produc­ • son shall receive any delivery if accept­ tion Board, no person shall produce nents, obtained by preference ratings. ance thereof would increase his inven­ (b) Definitions. (1) "Aircraft facil­ paper or paperboard on any machine tory above a practicable working mini­ which did not produce paper or paper- ity” means any machinery, material, mum, as provided in § 944.14 of Prior­ equipment, or structure, used in con­ board in the period May 1, 1943 to July ities Regulation No. 1, or would exceed 15, 1943, inclusive. . nection with the operation or shelter, the inventory limitations prescribed for or the maintenance or repair of aircraft. (d) Reserve production. Each man­ such person by CMP Regulation No. 2, ufacturer of paper or paperboard shall (2) "Operator” means any individual, or by any other applicable regulation or partnership, association, business trust, order of the War Preduction Board, »Formerly part 3096, § 3096.1. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10899 of any quantity of any grade of paper printed or converted beyond waxing or reserve in the production schedule of coating. each of his mills for the month of August or paperboard (other than newsprint) if the inventory of such grade in the hands (f) Miscellaneous provisions — (1) 1943, and for each calendar month there­ Records. All persons affected by this after, time and supplies sufficient to pro­ of such paper merchant is, or will by virtue of such acceptance become, either order shall keep and preserve for not duce and deliver within such month, at less than two years accurate and com­ the order of the War Production Board (a) in excess of two carloads, or (b), if in excess of two carloads, greater than plete records concerning inventories, 2% of such mill’s potential production production and sales. for the current calendar quarter. In - sixty days’ supply, on the basis of either his average rate of distributing such (2) Audit and inspection. All records general this should amount to approxi­ required to be kept by this order shall mately 6% of each month’s production. grade of paper or paperboard for the preceding quarter or his average rate of upon request, be submitted to audit and The War Production Board may on or be­ inspection by duly authorized represent­ fore the 15th day of any month direct any distributing such grade of paper or pa­ perboard as projected for the then cur­ atives of the War Production Board. manufacturer to employ such reserve to (3) Reports. All persons affected by produce any kind of paper or paperboard rent quarter. (ii) After January 1, 1944, no person this order shall execute and file with the usually produced at such mill, and in any War Production Board such reports and quantity thereof, not to exceed in the shall knowingly deliver to a paper mer­ chant, and no paper merchant shall ac­ questionnaires as said Board shall from aggregate for any one month 2% of such time to time request, subject to the ap­ mill’s potential production for the cur­ cept delivery of any quantity of any grade of paper or paperboard (other than proval of the Bureau of the Budget pur­ rent quarter, and sell and deliver the suant to the Federal Reports Act of 1942. same within the month to any person newsprint) if the inventory of such grade in the hands of such paper merchant is, (4) Violations. Any person who wil­ named by the War Production Board. fully violates any provision of this or­ The manufacturer may refuse so to pro­ or will by virtue of such acceptance be­ come, either (a) in excess of two car­ der or who, in connection with this order, duce and deliver only for the reasons wilfully conceals a material fact or fur­ specified for the refusal of rated orders loads, or (b), if in excess of two carloads, greater than forty-five days’ supply, on nishes false information to any depart­ in § 944.2 (b) Priorities Regulation No. 1. ment or agency of the United States, is If the manufacturer does not on or be­ the basis of either his average rate of distributing such grade of paper or guilty of a crime and upon conviction fore the 15th day of any month receive may be punished by fine or imprison­ from the War Production Board direc­ paperboard for the preceding quarter or his average rate of distributing such ment. In addition any such person may tions as to the disposition of such re­ be prohibited from making or obtaining serve (or has received directions as to grade of paper or paperboard ae pro­ jected for the then current quarter. further deliveries of or from processing the disposition of a part but not of the or using materials under priority con­ remainder) he may employ the same (or (3) Mill Inventories. No person shall produce at any mill any quantity of paper trol and may be deprived of priorities such remainder) as he may desire, con­ assistance. sistent with the other provisions of this or paperboard, if his inventory at such (5) Appeals. Any appeal from the order, _ _ mill is, or will by virtue of such produc­ provisions of this order shall be made by (e) Restrictions on inventory. Unless tion, become, in excess of (a) two car­ filing a letter in triplicate, referring to specifically authorized by the War Pro­ loads or (b), if in excess of two carloads, the particular provision appealed from duction Board or excepted by paragraph greater than sixty days’ supply, on the and stating fully the grounds of the (e) (4): basis of either the average rate of ship­ ment of paper or paperboard from such appeal. (1) Consumers inventories, (i) Prior (6) Communications. All communi­ to January 1,1944, no person shall know­ mill for the preceding quarter or the ingly deliver to any person except a paper average rate of shipment of paper or cations concerning this order shall un­ merchant and no person except a paper paperboard from such mill as projected less otherwise directed be addressed to merchant shall accept delivery of, any for the then current quarter. War Production Board, Pulp and Paper quantity of any grade of paper or paper- (4) Item Inventories. The term Division, Washington 25, D. C., Ref.: board (other than newsprint) if the in­ “grade of paper or paperboard” refers M-241. ventory of such grade in the hands of the to the classification on United States De­ Issued this 4th day of August 1943. person accepting delivery is, or will by partment of Commerce (Census) Form virtue of such acceptance become, either WPB-514, as revised February 24, 1943, War Production Board, (a) in excess of two carloads or (b), if each caption (except those which are By J. J oseph Whelan, in excess of two carloads, greater than further broken dotvn by following cap­ Recording Secretary. forty-five days’ supply, on the basis of tions) representing a separate grade. If [F. R. Doc. 43-12636; Filed, August 4, 1943; either his average rate of consuming such a person’s gross inventory of a grade is 11:16 a. m.] grade of paper or paperboard for the in excess of two carloads or the specmc preceding quarter or his average rate of number of days supply as specified in consuming such grade of paper or paper- (e) (1), (2), or (3), but his inventory of board as projected for the then current a particular item within that grade is Chapter XI—Office of Price quarter. less than thirty days’ supply (or, in the Administration (ii) After January 1, 1944, no person case of a paper merchant, less than forty- shall knowingly deliver to any person ex­ five days’ supply) he may accept delivery P art 1302—Aluminum cept a paper merchant and no person of or produce, and others may deliver to [MPR 2,1 Arndt. 2] except a paper merchant shall accept him, any quantity of such item as may delivery of, any quantity of any grade of be required to provide him with thirty ALUMINUM SCRAP AND SECONDARY ALUMINUM paper or paperboard (other than news­ days’ supply (or in the case of a paper INGOT print) if the inventory of such grade in merchant forty-five days’ supply). The A statement of the considerations in­ the hands of the person accepting deliv­ restrictions of this paragraph (e) apply volved in the issuance of this amend­ ery is, or will by virtue of such acceptance equally to paper and paperboard of for­ ment, issued simultaneously herewith, become, either (a) in excess of two car­ eign and domestic origin, and apply to intra company deliveries as defined in has been filed with the Division of the loads or (b), if in excess of two carloads, Federal Register.* greater than thirty days’ supply, on the § 944.12 of Priorities Regulation No. 1. Maximum Price Regulation No. 2 is basis of either his average rate of con­ They do not, however, apply to those amended in the following respects: suming such grade of paper or paper- papers commonly reported on United 1. The provisos in paragraphs (a) and board for the preceding quarter or his States Department of Commerce (Cen­ (b) of section 2, permitting contracts average rate of consuming such grade of sus) Form WPB-514 as revised February entered into prior to June 23, 1943 at paper or paperboard as projected for the 24, 1943 under the captions “Blueprint prices in conformance with Revised Price then current quarter. and similar base stock” (07610); “Photo­ (2) Merchants inventories, (i) Prior graphic and other sensitizing stock •Copies may be obtained from the Office of to January 1,1944, no person shall know­ (07611); and “Cigarette” (08512), or to Price Administration. ingly deliver to a paper merchant, and 18 F.R. 8495, 8948. no paper merchant shall accept delivery any paper or paperboard after it is 10900 FEDERAL REGISTER, Tkursday, A ugust 5, 1943

Schedule No. 2, as amended, to be car­ effect during the period February 11 to July 3, 1943 under any prime contract with ried out at contract prices until July 23, September 29, 1941, for extension of a war procurement agency is the maximum 1943, are amended by extending the ex­ credit involving the same amount and price in effect for the fabric on July 2, 1943. piration date for the carrying out of such term, contracts to August 23, 1943. 3. Section 1316.4 (d) Table I reference (b) In the case of sales at wholesale a number AVI is amended by deleting the 2. The proviso in section 4 is amended service charge of 5 cents a pair may be to read as follows: parenthetical phrase “(Ply Warp)”. added to the maximum price on all or­ 4. Section 1316.4 (d) Table I reference Provided, That any person may sell and ders of six pairs or less. However, the number AZ1 is amended to read as fol­ deliver, or deliver secondary aluminum maximum prices established by this reg­ lows: ingot until August 1,1943, and may carry ulation shall not be increased by any out until August 23, 1943 contracts en­ other additional charges for services AZl 54" 70 x 216 1.24 (Combed-Ply tered into before August 1,1943, at prices rendered to the purchaser by the seller Warp, Carded Fill)______95. 20 no higher than the maximum prices unless (1) the seller during the period 5. Section 1316.4 (d) Table I reference heretofore established for secondary February 11 to September 29, 1941, re­ number BD8 under Printer's Blanket aluminum ingot, so long as the quantity quired the payment of a separately Fabric is added to read as follows: of secondary aluminum ingot delivered stated additional charge for the rendi­ BD8 42" 54 x 60 2.02 (Ply Yarn)_____56. 48 by such .person at such prices between tion of services to purchasers of the same June 1, 1943 and August 23, 1943, inclu­ class, and (2) the amount charged for 6. Section 1316.4 (d) Table I'reference sive, does not exceed the quantity of the rendition of services is not in excess number BE1 is amended by adding after aluminum scrap and secondary alumi­ of the charge in effect during the period the numerals “1.93” the following paren­ num ingot which such person had on February II to September 29, 1941, to thetical phrase: “(40/1 combed cotton hand in his plant at the close of business purchasers of the same class for the yarn twisted with 20/1 carded spun on May 31, 1943 and which he reported rendition of the same or similar services. rayon warp) to the War Production Board on Form 2. Section 1315,1706a (b) is revoked. 7. Section 1316.4 (d) Table I reference PD-272, plus the amount of scrap pur­ 3. Section 1315.1713 is amended by number BE2 is amended by adding after chased under contract or other firm adding the following items to the table the numerals “1.66” the following paren­ commitment prior to June 23, 1943, and under the heading “Severe occupa­ thetical phrase: “(46/1 combed cotton which was not included on said inven­ tional”. yarn twisted with 20/1 carded spun tory reported to the War Production rayon warp) Board on Form PD-272. 8. Section 1316.4 (d) Table I reference W > Item numbers BR1, RR2 and BR3 are This amendment shall become effec­ Jb amended to read as follows; Class I Class III tive August 9, 1943. wholesale 5 a

; ; Sales at B R I 39” —40" 50 X 52 8.00 4 ______14 57 iPub. Laws 421 an Table I refer­ RETAIL AND WHOLESALE PRICES FOR VICTORY [F. R. Doc. 43—12620; Filed, August 3, 1943; ence number BT1, is amended to read as LINE WATERPROOF RUBBER FOOTWEAR 3:07 p, m,j follows: A statement of the considerations in­ BTI 38" 92 x 88 4.62______24. 50 volved in the issuance of this amend­ ment, issued simultaneously herewith, Part 1316—Cotton T extiles - 11. Section 1316.4 (d) Table I is has been filed with the Division of the [MPR 11,1 Arndt. 8] amended by adding to the colored shirt­ Federal Register.* ing and seersuckers group the following Maximum Price Regulation 229 is FINE COTTON GOODS footnote: amended in the following respects: A statement of the considerations in­ Colored shirting and seersuckers * 1. Section 1315.1705b is added to read volved in the issuance of this amend­ as follows: 6 The maximum prices listed above for col­ ment has been issued simultaneously ored shirting and seersuckers are for plain § 1315.1705b Terms and conditions of herewith and filed with the Division of weave single beam patterns with plain draw- sale, (a) The maximum prices estab­ the Federal Register.* in of not more than one color and greige in lished by this regulation shall not be in­ Maximum Price Regulation No. 11 is the warp, or pattern draw-in, of not more creased by any charges for the extension amended in the following respects: than two colors and greige in the warp, of credit unless (1) the seller during the 1. Section 1316.4 (d) Table I reference whichever is indicated, and in warp lengths period February 11 to September 29, number AK10 is amended to read as fol­ of not less than 50 pieces. lows: For patterns or constructions of colored 1941, required payment of a separately shirting and seersuckers varying from those stated additional charge for the exten­ AK1Q 40" 88 x 88 11.00 (Mule Spun for which maximum prices are established sion of credit by purchasers of the same Fill)------20.50 above, the maximum price shall be the maxi­ class on sales of the same or similar mum price for the nearest related pattern or 2. Section 1316.4 (d) Table I reference construction listed in Table I adjusted in ac­ types of commodities, and (2) the number A02 is amended by adding the cordance with the premiums provided in* amount charged for the extension of following footnote. paragraph (c> of this section and the credit is not in excess of the charge in A0 2 2« following: 2a p ie maximum price for 37" 102 x 48 3.15 (A) Color or yarn changes: ♦Copies may be obtained from the Office poplin on subcontracts entered into prior to For a substitution in the warp of a color, Df Price Administration. shade or greige for another color, shade or greige, or a substitution of one yarn size for 17 F.R. 7740, 7738, 8701, 8936, 10289, 10844 18 F.R. 361, 2206, 4628, 4725, 5477, 8065, 8615, 8 FJt. 8843. 8937. another yam size (the total change not to involve more than 12 % % of the total count' FEDERAL REGISTER, Thursday, A ugust 5, 1943 10901 Branch of the Office of Price Adminis­ of warp ends); or for the addition of extra (1) Deduct from the maximum price of the warp ends (colored and/or greige) for the listed construction the entire cost of its warp tration, Washington, D. C., a written purpose of producing pattern effects, (the as calculated from the following table and request for approval of such tentative total change not to exceed 5% of the total to the result add the new warp cost calcu­ price. The person filing such request, count of warp ends) : lated in accordance with the same table. shall file in connection therewith a state­ ment setting forth: 40/2 40/3 40/4 60/2 60/2 (i) Such tentative price, 40/1 50/1 60/1 (ii) An explanation as to why it is im­ ,0042 .0063 .0084 .0039 .00346 possible to determine his maximum price Greige per 100 ends...... -- ...... 00210 .00195 .00173 Pastel 270 color per 100 ends...... 00302 .00268 .00234 under subparagraphs (1), (2) or (3) of Medium 460 color per 100 ends...... - ...... 00367 .00320 .00277 this paragraph (a), Dark 660 color per 100 ends...... - .00435 .00374 .00323 (iii) A description of the available transportation facilities, and a descrip­ lb determine the cost of each 100 ends of (Pub. Laws 421 and 729 77th Cong.; E.O. tion of the gravity, characteristics and 40s 50s or 60s colored ply yarns, use single 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. 4681) source of the crude petroleum in question. yarn table for 40s, 50s and 60s respectively Such tentative price shall be the times the ply. Issued this 3d day of August 1943. For any substitution involving a color of Prentiss M. Brown, maximum price for crude petroleum a cost other thap the above listed costs, the Administrator. produced from the same pool until a warp cost shall be obtained by interpolation substitute maximum price is set in writ­ between or extrapolation from the costs [F. R. Doc. 43-12621; Filed, August 3, 1943; ing by the Petroleum Branch of the listed above. 3:06 p. m.] Office of Price Administration, Wash­ (B) Draw-in changes: ington, D. C. If a seller and purchaser Where a listed pattern draw-in construc­ have agreed upon a price for the sale of tion is converted to a plain draw-in construc­ crude petroleum subject to the approval tion deduct %0 per yard. P art 1340—F uel of the Office of Price Administration, a Where a listed plain draw-in construction [RPS 88,1 Arndt. 118] is converted to a fancy draw-in construction, maximum price determined in accord­ in addition to the premium provided in par­ PETROLEUM AND PETROLEUM PRODUCTS ance with this subparagraph (4) shall be agraph (c) of this section for fancy draw, effective retroactively to February 2, add Vs of a cent per yard for each additional A statement of the considerations in­ 1942 or the date of the agreement which­ color, shade or equivalent in excess of two volved in the issuance of this amendment ever is later. colors and greige. For the purposes of de­ issued simultaneously herewith has been termining this premium tapes, ply cords, filed with the Division of the Federal 3. Section 1340.159 (c) (1) (vii) (g) bunched ends, skip dents, double draw (2 Register.’" is added to read as follows: ends or more weaving as 1), reverse twist Revised Price Schedule No. 88 is (vii) The maximum price at the re­ warp stripes, or any other novelty draw, shall each be considered the equivalent of a amended in the following respects; ceiving tank for crude petroleum pro­ color or shade. 1. Section 1340.159 (a) (2) is amended duced in the Woodsboro Field, Refugio (C) Pickage changes: as follows: County, Texas, and sold by owners of For each pick (not exceeding 4 picks per (2) Where on October 1, 1941, there royalty interests shall be $1.35 flat per inch) added to or omitted from a listed con­ was for any given pool no posted pur­ barrel. struction for the purpose of producing pat­ tern effects add or subtract 0.15 cent per chase price, or more than one posted 4. Section 1340.159 (c) (1) (xiii) (a) is pick for greige filling yarns number 30 to 60, purchase price, the maximum price for amended to read as follows: and 0.25 cent per pick for greige filling yarn a particular producer at the receiving (xiii) Kentucky (a). The maximum number 60 and above. tank for crude petroleum from such pool prices at the receiving tank for crude oil (D) Short warps: shall be the price paid for crude petro­ produced in the areas, in the State of For short warps of any construction of leum at any receiving tank of the same colored shirting or seersucker subject to producer as of October 1, 1941 unless Kentucky, designated below shall be: the maximum prices set in this regulation this price is below the lower or lowest Price per 42 the following premiums may be added: of the posted purchase prices, if any, and Area: gallon barrel 32 to 49 pieces to a warp, add 10 per yard in that case, the maximum price shall Big Sandy River (Somerset crude) _ $1.43 20 to 31 pieces to a warp, add 1%0 per yard Sebree Field, Webster County---- ■— 1.37 12 to 19 pieces to a warp, add 3%0 per yard not be in excess of such lower or lowest Belton Field,, Muhlenberg County— 1.37 Where any one sale of a given pattern is posted purchase price: Provided, how­ Spottsville, Henderson County------1-37 for various size warps of different colors or ever, That a price paid pursuant to a Owensboro Area------1- 37 shades with a resulting variation in the contract in effect on October 1, 1941 and Bowling Green Area------1-17 maximum prices for such warps the seller entered into prior to that date, shall not Butler County------1-32' may, after computing the maximum price be considered in-determining the maxi­ separately for each warp, determine and use mum price for crude petroleum unless Maximum prices established • herein as his maximum price for that sale a weighted the contract price reflected current mar­ may be charged any purchaser who average of such varying prices: Provided, ket conditions on or about October 1, agreed on or prior to June 1,1943 to pay That (1) The contract of sale or invoice shall a price determined in accordance with contain the data from which the weighted 1941. the disposition of a petition filed with average price is obtained; (2) Each delivery 2. Section 1340.159 (a) (4) is amended the Office of Price Administration. shall be accompanied by an invoice or simi­ to read as follows: lar document which shall either contain the 5. In § 1340.159 (c) (3) (xi) the words, information required by (1) above or make (4) Where the maximum price for any “at seller’s yard for deliveries in con­ reference to the contract in which such in­ sale of crude petroleum at the receiving tainers in quantities of 10 gallons or formation is set forth. tank cannot be determined under (1) over,” are corrected to read, “at seller s 12. Section 1316.4 (d) Table I refer­ through (3) above, the seller or pur­ yard for deliveries in containers in quan­ chaser shall set a tentative price for the tities of 10 gallons or less.” ence number KC16 is amended by delet­ crude petroleum at the particular re­ 6. In § 1340.159 (a) (5) (ii) the word ing the maximum price “26.90” and in­ ceiving tank or tanks which shall be in “may” in the phrase, “the seller may serting the maximum price “27.60” under line with the maximum prices for com­ establish a tentative differential for a the column headed “50% color, medium.” parable crude petroleum in the same sale of crude petroleum at such point,” 13. Section 1316.4 (d) Table I refer­ general area. Within ten days after is corrected to ‘‘shall,” and will now read, ence number KC17 is amended by delet­ setting such a tentative price the seller “the seller shall establish a tentative dif­ ing the maximum price “27.59” and in­ or purchaser shall file with the Petroleum ferential for a sale of crude petroleum at serting the maximum price “28.28” under the column headed “50% color, medium.” such point.” ♦Copies may be obtained from the Office This amendment shall become effec­ This amendment shall become effective of Price Administration. tive August 9, 1943. on the 9th day of August, 1943. 18 F.R. 3718. 10902 FEDERAL REGISTER, Thursday, A ugust 5, 1943

(Pub. Laws 421 and 729, 77th Cong.: E.O 2. Maximum price which applicant seeks 9250, 7 F.R. 7871) to establish for new item _____per (specify sions of this regulation for the similar u n i t ) ...... * domestic malt beverage most nearly lik? Issued this 3d day of August 1943. 8. For all other domestic malt beverages it, for sales to purchasers of the same P rentiss M. Brown, manufactured and sold by applicant, give: class: Provided, That if the ma.xirmirp Administrator. Brand name and description price established under this regulation for the wholesaler’s or retailer’s similar [P. R. Doc. 43-12616; Piled, August 8, 1943; Total raw material costs___ r__" per (same 3:04 p. m.J domestic malt beverage most nearly like unit as given in 2 ) ------Maximum the domestic malt beverage to be priced, p rice------per (same unit as given in 2) does not include the increases, or any 4. For most closely competitive seller’s part thereof, permitted under § 1420.66 Part 1351—F ood and F ood P roducts similar item, give: Brand name and descrip­ (a), (b) and , the maximum price es­ [MPR 259,1 Amdt. 2] tion __;______tablished under this paragraph may in­ clude such permitted increases or part DOMESTIC MALT BEVERAGES Maximum price------per (same as unit as thereof. A statement of the considerations in­ given in 2) ______5. Explanation of reasons applicant is un­ (ii) If the wholesaler’s or retailer’s volved in the issuance of this amendment, able to establish maximum price for new maximum price cannot be determined issued simultaneously herewith, has been item according to maximum price of any of imder (i), the maximum price estab­ filed with the Division of the Federal his own brands. lished by the most closely competitive Register.* seller of the same class for (a) the same Maximum Price Regulation No. 259 is (b) Approval of or objection to appli­ domestic malt beverage, or, if the same amended in the following respects: cation. If within 30 days after receipt of domestic malt beverage is not sold or 1. Section 1420.66 (h) is amended to the application by the Office of Price Ad­ offered for sale, then (b) the similar do­ read as follows: ministration, the manufacturer shall not mestic malt beverage most nearly like receive notice of objection to the maxi­ it, for sales to purchasers of the same (h) If the seller’s maximum price formum price proposed in the application a domestic malt beverage to be priced by letter from the Office of Price Ad­ class: Provided, That if the maximum cannot be determined under any of the ministration, he shall be deemed author­ price established by the most closely above paragraphs of this section, the ized to establish such maximum price competitive seller of the same class for seller’s maximum price for a domestic for sales of the item: Provided, That if such seller’s same domestic malt bev­ malt beverage shall be: within the 30-day period the Office of erage or similar domestic malt beverage (1) For manufacturers, (i) The max­ Price Administration shall by letter re­ most nearly like the domestic malt bev­ imum price established by the manufac­ quest supplemental information with re­ erage to be priced, does not include the turer under the provisions of this regu­ spect to any matter set forth in the ap­ lation for the similar domestic malt increases, or any part thereof, permitted plication, that period shall be figured under § 1420.66 (a), (b) and (c), the beverage most nearly like it, for sales to from the date on which the requested purchasers of the same class: Provided, supplemental information is received in maximum price established under this That if the maximum price established writing by the Office of Price Adminis­ paragraph may include such permitted under this regulation for the manufac­ tration. The authority so granted may increases or part thereof. turer’s similar domestic malt beverage be revoked at any time by the Price Ad­ (iii) New items priced since March most nearly like the domestic malt bev­ ministrator. Upon written request of 31, 1942 and prior to August 9, 1943. A erage to be priced, does not include the the manufacturer received by the Office wholesaler or retailer who since March increases, or any part thereof, permitted of Price Administration within 30 days 31, 1942 and prior to August 9, 1943 has under § 1420.66 (a) and (c), the max­ after the date of a notice of objection established a maximum price for a new imum* price established under this para­ given under this paragraph, the Office domestic malt beverage according to the graph may include such permitted maximum price of st\ competitor’s simi­ increases or part thereof. of Price Administration will issue a lar domestic malt beverage, shall within (ii) If the manufacturer’s maximum formal order denying authority to estab­ 30 days after the latter date establish a price cannot be determined under (i), lish the maximum price requested in his maximum price for such new domestic he shall apply to the Office of Price Ad­ application. * malt beverage under (i) or, if he cannot ministration for authorization to deter­ (c) New products priced since Marchestablish a maximum price for such item mine his maximum price in accordance 31, 1942 and prior to August 9, 1943. A under that paragraph, the wholesaler or with the maximum price established manufacturer who since March 31, 1942 retailer shall continue the maximum under this regulation by his most closely and prior to August 9, 1943 has estab­ price established according to his com­ competitive seller of the same class for lished a maximum price for a domestic petitor’s maximum price for the same the similar domestic malt beverage most malt beverage newly produced by him, or similar item: Provided, That if the nearly like it, for sales to purchasers of according to the maximum price of a the same class: Provided, That if the manufacturer of such new domestic malt maximum price established by the most competitor’s similar item, shall within 30 beverage is required under this section closely competitive seller of the same days after the latter date apply to the for any reason to decrease his m axim um class for his domestic malt beverage Office of Price Administration for au­ price therefor in accordance with any most nearly like the domestic malt bev­ thorization to use the established price, determination of the Office of Price Ad­ erage to be priced, does not include the in the manner prescribed under (a) and ministration, the wholesaler or retailer increases, or any part thereof, per­ subject to the method of approval or ob­ shall re-examine the basis of his original mitted under § 1420.66 (a) and (c), the jection prescribed under (b) : Provided, determination in establishing a maxi­ maximum price established under this That with respect to a domestic malt mum price for such domestic malt bev­ paragraph may include such permitted beverage for which an application is re­ erage and establish a new maximum increases or parts thereof. quired to be filed pursuant to this para­ (a) Form and contents of application. price for such item in accordance with graph, the manufacturer may not sell or the pricing methods of this section. The application shall ^ be in writing, deliver such item after August 8, 1943 signed by the manufacturer or his au­ 2. Section 1420.66 (d) is hereby re­ thorized agent and sent to the Office of until a maximum price is authorized un­ voked. Price Administration, Beverage Section, der this paragraph, except under an Washington, D. C., by registered mail. agreement with the purchaser to adjust This amendment shall become effec­ It shall contain information presented in the selling price to a figure not higher tive August 9, 1943. the following way: than the maximum price which is later (Pub. Laws 421 and 729, 77th Cong.; E.O. 1. Brand name and description of item to authorized under this paragraph. The 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. 4681) be priced______maximum prices authorized under this paragraph may be revoked or amended Issued this 3d day of August 1943. at any time. P rentiss M. Brown, ♦Copies may be obtained from the Office of (2) For wholesalers and retailers, (i) Administrator. Price Administration. 1 7 P.R. 8950, 9495, 9621. The maximum price established by the [F. R. Doc. 43-12622; Filed, August 3, 1943; wholesaler or retailer under the provi- 3:06 p. m.l FEDERAL REGISTER, Thursday, A ugust 5, 1943 10903

P art 1351—Food and F ood Products Sec. in such quantities as might have oc­ 11. Maximum prices for sales of imported curred in good production practice as in [MPR 444] cottonseed oil meal, cake, sized cake vogue prior to price control. Further, or pellets or cottonseed hulls or hull COTTONSEED OIL MEAL, CAKE, SIZED CAKE AND bran. screenings or other foreign materials PELLETS J AND COTTONSEED HULLS AND 12. Maximum prices in other cases. must not be added to the meal, or cake, HULL BRAN 13. Increases for sacks. sized cake or pellets after the crushing 14. Sales of cottonseed oil meal, cake, sized of the oil from the cottonseed. Maximum Price Regulation 444 is a cake or pellets on basis of guaranteed “Cottonseed hulls and hull bran” refer revision and amendment as to the above m in im u m percentage of protein and to the by-products produced by a proces­ named cottonseed products of former adjustment for deficiencies. sor from cottonseed as above described. § 1499.75 (a) (50) of Supp. Reg. 14 to the 15. Maximum prices for export sales. “Jobber” is a person other than a General Maximum Price Regulation. ARTICLE IH— MISCELLANEOUS processor, grinder or retailer who dis­ (The present section is section 1.8 of Re­ PROVISIONS tributes cottonseed oil meal, cake, sized vised Supp. Reg. 14 to the General Maxi­ 16. Adjustable pricing. cake, pellets, cottonseed hulls or hull mum Price Regulation. 17. Evasion. bran owned by him without unloading In the judgment of the Price Admin­ 18. Records and reports. into a warehouse. istrator, the maximum prices established 19. Enforcement. “Wholesaler” is a person who buys by this regulation are generally fair and 20. Protests and petitions for amendment. cottonseed oil meal, cake, sized cake or equitable and comply with all provisions Article I—Scope of This Regulation pellets, or cottonseed hulls or hull bran, and will effectuate the purposes of the unloads it into a warehouse and resells Emergency Price Control Act of 1942, as S e c t io n 1. Geographical applicability. the same to a retailer or a person who amended, and of E.O. 9250 and E.O. 9328. This regulation shall apply to all sales, processes the same further. It includes The statement of the considerations whether for immediate or future deliv­ a processor or grinder where he trans­ involved in the issuance of this regula­ ery, within the 48 states and the District ports and unloads the aforesaid products tion has been issued simultaneously of Columbia of the United States of im­ into a warehouse operated as a place of herewith and has been filed with the Di­ ported and domestic cottonseed oil meal, business separate from the production vision of the Federal Register.* cake, sized cake and pellets; and cotton­ plant and thereafter sells the same to the § 1351.364 Maximum prices for cot­ seed hulls and cottonseed hull bran persons above mentioned. tonseed, oil meal, cake, sized cake and whether produced from domestic or im­ “Retailer” is a person who buys cot­ pellets; and cottonseed hulls and hull ported cottonseed. tonseed oil meal, cake, sized cake or pel­ bran. Under the authority vested in the Sec. 2. Effect of maximum prices, (a) lets or cottonseed hulls or hull bran and Price Administrator by the Emergency While this regulation remains in effect, resells the same to a feeder. It includes Price Control Act of 1942, as amended, regardless of any contract or obligation, a processor or grinder where he trans­ Executive .Order 9250 and Executive Or­ no person shall in the course of trade or ports and unloads the aforesaid prod­ der 9328, Maximum Price Regulation 444 business sell, deliver, buy or receive any ucts into a store operated as a place of (Cottonseed oil meal, sized cake and pel­ cottonseed oil meal, cake, sized cake or business separate from the production lets; and cottonseed hulls and hull bran), pellets or cottonseed hulls or cottonseed plant and thereafter sells the same to a which is annexed hereto and made a hull bran at prices above the maximum feeder. part hereof, is hereby issued. prices established by this regulation; nor “Feeder” is a person who feeds any shall any person agree, offer, solicit or cottonseed oil meal, cake, sized cake or Authority: § 1351.364 issued under Pub. attempt to do any of the foregoing. pellets or cottonseed hulls or hull bran Laws 421 and 729, 77th Cong.; E.O. 9250, 7 (b) However, prices lower than the F.R. 7871; E.O. 9328, 8 P.R. 4681. to animals or poultry. . maximum prices established by this reg­ “Carload lot” means a lot of cotton­ Maximum Price Regulation 444—Cottonseed ulation may be charged and paid. seed oil meal, cake, sized cake or pellets Oil Meal, Cake, Sized Cake and Pellets; and Cottonseed Hulls and Hull Bran Article 11—Definitions, Maximum Prices of 30 tons or more and for cottonseed and Terms of Sale hulls or hull bran the minimum estab­ ARTICLE I ----SCOPE OP THIS REGULATION lished in official railroad tariffs. Sec. wSec. 3. Definitions. When used herein “Less than carload lots” means a quan­ 1. Geographical applicability. tfie following terms shall have the fol­ 2. Effect of maximum prices. tity other than a carload or pool car lot, lowing meanings: and includes truck quantities. ARTICLE I I ----DEFINITIONS, MAXIMUM “Person” means an individual, corpo­ “Pool car lot” means a railroad car PRICES AND TERMS OF SALE ration, partnership, association or other lot in which two or more buyers have 8. Definitions. organized group of persons or the legal combined for the purpose of obtaining 4. Maximum prices for sale of domestic successor or representative of any of the a carload rail freight rate. cottonseed oil meal, cake, sized cake foregoing, and includes the United States “North-South dividing line” consists of and pellets other than that specified or any other government or any politi­ in section 5 hereof by processors. a line extending along the following state 6. Maximum prices for sale of domestic cal subdivision or agency of any of the boundary lines: the boundary line be­ cottonseed oil meal, cake, sized cake foregoing. tween North Carolina and Virginia; the or pellets owned or under contract by “Processor” is a person who processes boundary lines between Tennessee and a processor or produced from cotton­ cottonseed by expeller, extraction or hy­ Virginia, Kentucky and Missouri; the seed owned or under contract by a draulic process into cottonseed oil and boundary line between Arkansas and processor on July 31, 1943. cottonseed oil cake or meal, sized cake, Missouri; the Ixnmdary lines between 6. Maximum prices for the sale of domes­ pellets, cottonseed hulls, hull bran and tic cottonseed hulls and hull bran by Oklahoma and Missouri, Kansas and processors. linters. Colorado; the boundary line between 7. Maximum prices for the sale of domes­ “Grinder” is a person who buys cot­ New Mexico and Colorado; the bound­ tic cottonseed oil meal, sized cake or tonseed oil cake and processes or pro­ ary line between Arizona and Utah and pellets by grinders. cures the processing of such cake into Nevada; and the boundary line between 8. Maximum prices for the sale of domes­ cottonseed oil meal, ^ized cake or pellets California and Nevada and Oregon. tic cottonseed oil meal, cake, sized and sells such oil meal, sized cake or pel­ cake or pellets or cottonseed hulls or “Transportation charges” shall be lets It includes a processor who buys computed at: hull bran by jobbers. cottonseed oil cake and processes such 9. Maximum prices for the sale of domes­ (i) The lowest common carrier rate tic cottonseed oil meal, cake, sized cake into cottonseed oil meal, sized cake (including the 3 per cent tax provided cake or pellets or cottonseed hulls or or pellets and sells such oil meal, sized for in section 620 of the Revenue Act of hull bran by wholesalers. cake or pellets. 1942, as amended) for the billing or ship­ 10. Maximum prices for sales of domestic “Cottonseed oil meal, cake, sized cake ment in question; or cottonseed oil meal, cake, sized cake and pellets” refer to the products pro­ or pellets or cottonseed hulls or hull (ii) If there is no such rate, the rea­ bran by retailers. duced by a processor or grinder from sonable value of the service (including cottonseed as above described. The cot­ said 3 per cent tax, if any) not exceed­ •Copies may be obtained from the Office of tonseed used must not contain screen­ ing any maximum price established Price Administration. ings or other foreign materials except therefor. No. 154-----7 10904 FEDERAL REGISTER, Thursday, A ugust 5, 1943

Sec. 4. Maximum prices for sale of do­ S ec. 5. Maximum prices for sale of do­ processor or grinder for the quantity or mestic cottonseed oil meal, cake, sized mestic cottonseed oil meal, cake, sized quality of the commodity as purchased cake and pellets, other than that speci­ cake or pellets owned or under contract by him and which he is reselling plus fied in section 5 hereof "by processors. by a processor or produced from cotton­ transportation charges actually incurred (a) The maximum price for the sale and seed owned or under contract by a proc­ by the seller in respect to the lot sold. delivery of domestic cottonseed oil meal, essor on July 31, 1943. (a) The maxi­ S ec. 9. Maximum prices for the sale of and sized cake (other than that specified mum price for the sale and delivery of domestic cottonseed oil meal, cake, sized in section 5 hereof) per ton, in carload domestic cottonseed oil meal, cake, sized cake or pellets or cottonseed hulls or hull lots or pool car lots, bulk, 41 per cent up cake or pellets, which is. owned or under bran by wholesalers. The maximum to 43 per cent of protein, at production contract by a processor or which is pro­ price for the sale of domestic cottonseed plant, by a processor shall be as follows: duced from cottonseed of the 1942 crop oil meal, cake, sized cake or pellets or State where production plant is Maximum owned or under contract by a processor cottonseed hulls or hull bran by a whole­ located : price on July 31, 1943, per ton, in carload lots saler shall be: Mississippi______$45.00 or pool car lots, bulk, 41 per cent up to (a) $2.50 per ton (maximum markup) Tennessee______45. 50 43 per cent of protein at production for sales of cottonseed oil meal, cake, Arkansas (east of White River)__«, 45.50 plant, by a processor shall be $2.00 per sized cake or pellets; and Arkansas (other points)______46. 00 ton above the maximum trade prices (b) $2.00 per ton (maximum markup) Missouri______46.00 specified in Schedule A of the Processor Illinois______46. 25 for sales of cottonseed hulls or hull bran, Louisiana______46. 00 Contract, 1942 Cottonseed Program, of over the maximum price which he could Oklahoma______47. 00 the Commodity Credit Corporation. lawfully have paid the processor, grind­ Texas (exclusive of El Paso)______47.00 (b) The foregoing maximum prices er or jobber for the quantity or quality Texas (El Paso)______48.00 shall be increased at the rate of $1.00 purchased (from out of which lot the sale Alabama______46. 00 per ton for a sale of any cottonseed oil in question is made) delr^red at his Georgia______46. 50 meal, cake, sized cake or pellets in a less warehouse plus transportation charges Florida______46. 50 than carload lot. actually incurred by the seller from said South Carolina______47.00 (c) The maximum prices established North Carolina______47. 50 warehouse to the buyer’s receiving point. New Mexico______48. 00 by this section shall be applicable to all Sec. 10. Maximum prices for sales of Arizona______48. 00 processors irrespective of whether or not domestic cottonseed oil meal, cake, sized California______48. 00 the above named Processor Contract is cake or pellets or cottonseed hulls or hull Any other state___ The maximum price in effect. bran by retailers. The maximum price of the state where­ S ec. 6. Maximum prices for the sale of for the sale of domestic cottonseed oil in is located the domestic cottonseed hulls and hull bran meal, cake, sized cake or pellets or cot­ production plant for processors, (a) The maximum price tonseed hulls or hull bran by a retailer nearest to the plant for the sale of domestic cottonseed hulls, in question. shall be: per ton, bulk, by the processor shall be (a) $5.50 per ton (maximum markup) (b) The foregoing maximum prices $12.00 per ton for sales in carload lots, for sales of cottonseed oil meal, cake, shall be decreased at the rate of 75 cents and $13.00 per ton for sales in less than sized cake or pellets; and per ton for a like sale and delivery of a carload lots, plus transportation charges (b) $4.00 per ton (maximum markup) like quality of cottonseed oil cake. from plant where produced to the buy­ for sales of cottonseed hulls or hull bran (c) The maximum prices specified in er’s receiving point by a usual route and over the maximum price which he could paragraph (a) of this section shall be method of transportation. lawfully have paid the processor, grinder, increased at the rate of $1.50 per ton for (b) The foregoing maximum prices jobber or wholesaler for the quantity and a like sale and delivery of a like quality shall be increased at the rate of $4.00 per quality purchased (from out of which lot of cottonseed oil meal pellets. ton for a sale of any cottonseed hull the sale in question is made) delivered (d) The foregoing maximum prices bran. at his receiving point plus transporta­ shall be decreased for the sale of lots S ec. 7. Maximum prices for the sale of tion charges actually incurred by the of cottonseed oil meal, cake, sized cake domestic cottonseed oil meal, sized cake seller from his receiving point to his or pellets containing less than 41 per or pellets by grinders, (a) The maxi­ buyer’s receiving point. cent protein at the rate of 75 cents per mum price for the sale or delivery of S ec. 11. Maximum prices for sales of ton for each 1 per cent or fraction there­ cottonseed oil meal, sized cake or pellets imported cottonseed oil meal, cake, sized of of protein below 41 per cent of protein. by a grinder shall be the maximum price cake or pellets or cottonseed hulls or hull (e) Thé foregoing maximum prices of the processor (from whom the cotton­ bran, (a) The basic maximum price for shall be increased at the rate of $2.00 seed oil cake was obtained) for a like sale the sale (within the 48 states and the Dis­ of such oil meal, sized cake or pellets trict of Columbia of the United States) per ton for the sale of any lot of cotton­ (that is, the maximum price of the proc­ seed oil meal, cake, sized cake or pellets of any imported cottonseed oil meal, essor determined according to the appli­ cake, sized cake or pellets or cottonseed containing 43 per cent or more of pro­ cable provisions of section 5 or 6) plus hulls shall be the maximum price for a tein. , an addition at the rate of 50 cents per like, sale by a processor of a like quantity (f) The foregoing maximum prices ton plus actual or reasonable transpor­ and quality of the domestic product pro­ shall be increased at the rate of $1.00 tation charges, if any, incurred by the duced at that domestic production plant per ton for a sale of any cottonseed oil seller in respect to the lot sold. located nearest the port of entry: Pro­ meal, cake, sized cake or pellets in a less (b) Where a processor makes a sale vided, That: than carload lot. as a grinder, the burden shall always rest (1) If the port of entry is located in (g) The foregoing maximum prices upon him to establish by clear evidence Oregon or Washington said, basic maxi­ that he in fact actually performed the mum price for such sale thereof shall be shall be increased for a sale and delivery functions of a grinder. of any cottonseed oil meal, cake, sized the maximum price for a like sale by a S ec. 8. Maximum prices for the sale cake or pellets by a processor at any processor of a like quantity and quality of domestic cottonseed oil meal, cake, of the domestic product produced at San point other than the plant where pro­ sized cake or pellets or cottonseed hulls Francisco, California; or duced by transportation charges from or hull bran by jobbers. The maximum (2) If the port of entry is not located said production plant to such point by price for the sale of domestic cottonseed in a state specifically named in section a usual route and method of transporta­ oil meal, cake, sized cake or pellets or 4 (a) hereof or in Oregon or Washington tion; plus, in the case of a sale and de­ cottonseed hulls or hull bran by a jobber said basic maximum price for such sale livery by any processor in carload lots , shall be: thereof shall be the maximum price for of any cottonseed oil meal, cake, sized (a) 50 cents per ton (maximum mark­ a like sale by a processor of a like quan­ cake or pellets produced at any produc­ up) for all sales in carload lots; and tity and quality of the domestic product tion plant to a point north of the North- (b) $1.00 per ton (maximum mark­ produced at Memphis, Tennessee. up) for sales in less than carload lots or (b) Jobbers, wholesalers and retailers South dividing line, a further increase at pool car lots, over the maximum price the rate of $1.00 per ton. making sales (within the 48 states and which he qould lawfully have paid a the District of Columbia of the United FEDERAL REGISTER, Thursday, A ugust 5, 1943 10905

States) of any such imported products sized cake or pellets except on the basis Price Administration and keep such shall add their respective permitted of a specified guaranteed minimum per­ further records as the Office of Price markups as provided as to domestic centage of protein therein. Administration may from time to time products over the basic maximum price (b) If an actual analysis of any lot of require* of the imported products as provided in domestic or imported cottonseed oil meal, Sec. 19. Enforcement. Persons violat­ paragraph (a) of this section. cake, sized cake or pellets differs from ing any provision of this regulation are (c) A mixed feed manufacturer in de­the guaranteed minimum percentage' of subject to the license revocation or sus­ termining his maximum prices under protein therein then: pension provisions, civil enforcement ac­ Maximum Price Regulation 378 on his (1) If above said guaranteed minimum tions, suits for treble damages, and crim­ mixed feed for animals and poultry shall percentage of protein,'no increase in the inal penalties as provided in the Emer­ calculate his “cost” of any such imported maximum price is permitted. gency Price Control Act of 1942, as products at the maximum price thereof (2) If below said guaranteed minimum amended. as above provided if he purchased the percentage of protein, the deficiency S ec. 20. Protests and petitions for same within the 48 states and the Dis­ %hall be adjusted and settled in accord­ amendment. Any person desiring to file trict of Columbia of the United States; ance with the applicable rules of the a protest against or seeking an amend­ and if he did not then at the maximum National Cottonseed Crushers Associa­ ment of any provisions of this regulation price thereof as specified in paragraph tion and the resulting figure is the ad­ may do so in accordance with Revised justed maximum price thereof. Procedural Regulation No. 1 issued by (a) of this section. the Office of Price Administration.3 S ec. 12. Maximum prices in other Sec. 15. Maximum prices for export cases, (a) The maximum price for the sales. The maximum price for export Effective Date sales of cottonseed oil meal, cake, sized sale of any cottonseed oil meal, cake, This regulation shall become effective sized cake or pellets or cottonseed hulls cake or pellets shall be determined in or hull bran by any other person of a accordance with the provisions of the " July 31, 1943. class of seller not hereinbefore specifi­ Second Revised Maximum Export Price Note: The record keeping provisions oi Regulation-1 this regulation have been approved by the cally provided for shall be the maximum Bureau oi the Budget in accordance with the price which the person from whom he Article III—Miscellaneous Provisions purchased could lawfully have charged Federal Reports Act of 1942. for a like sale; Provided, That no grower Sec. 16. Adjustable pricing. Any per­ Issued this 31st day of July 1943. or ginner of cottonseed shall sell or de­ son may agree to sell at a price which P rentiss M. Brown, liver cottonseed oil meal, cake, sized can be increased up to the maximum Administrator. cake or pellets or cottonseed hulls or hull price in effect at the time of delivery bran obtained from a processor in ex­ but no person may, unless authorized by {F. R. Doc. 43-12456; Filed, July 81, 1943; change for cottonseed at a higher price the Office of Price Administration, de­ 2:40 p. m.] than the maximum price of the proces­ liver or agree to deliver at prices to be sor With whom he traded for a like sale adjusted upward in accordance with or delivery. action taken by the Office of Price P art 1363— F eedingstuffs (b) Notwithstanding any other pro­ Administration after delivery. Such [Rev. MPR 74, Arndt. 1] vision of this regulation, sales between authorization may be given when a re­ persons of one of the classes of sellers quest for a change in the applicable ANIMAL PRODUCT FEEDINGSTUFFS hereinbefore specifically provided for maximum price is pending, but only if A statement of the considerations in­ shall be permissible: Provided, That no the authorization is necessary to promote volved in the issuance of this amend­ such sales, nor sales to a person of a distribution or production and if it will ment, issued simultaneously herewith, different class, shall be at a higher price not interfere with the purposes of the has been filed with the Division of the than the maximum price hereinbefore Emergency Price Control Act of 1942, as Federal Register.* prescribed for said class of sellers. amended. The authorization may be Revised Maximum Price Regulation 74 S ec. 13. Increases for sacks. When given by the Administrator or by any is amended in the following respects: any seller has bulk domestic or imported official of the Office of Price Administra­ 1. Section 4 is amended to read as fol­ cottonseed oil meal, cake, sized cake or tion to whom the authority to grant such lows: pellets or cottonseed hulls or hull bran authorization has been delegated. The and desires to.sell the same sacked the authorization will be given by order, ex­ S ec. 4. Maximum prices for sales by foregoing maximum prices where deter­ cept that it may be given by letter or all persons of dry rendered tankage, (a) mined on a bulk basis shall be increased telegram when the contemplated revi­ The maximum price for the sale of do­ at the following rates per ton: sion will be the granting of an individual mestic dry rendered tankage, per ton, (a) For sales of cottonseed oil meal, application for adjustment. bulk, by any person shall be at the rate cake, sized cake or pellets: Sec. 17. Evasion. The provisions of of $1.25 for each percentage of protein (1) In seller’s sacks, the reasonable this regulation shall not be evaded therein plus transportation charges from market value of the sacks, not exceeding whether by direct or indirect methods in production plant thereof to the buyer’s any maximum price thereon at the time connection with any offer, solicitation, receiving point by a usual route and of the sale or delivery: Provided, That if agreement, sale, delivery, purchase or re­ method of transportation. the sacks were purchased from the buyer ceipt of any commodity covered by this (b) The maximum price for the sale by the seller, the seller shall not charge regulation alone or in connection with of imported dry rendered tankage, per more than the price he paid for such any other commodity or by way of com­ ton, bulk, by any person shall be at the sacks. mission, service, transportation or other rate of $1.25 for each percentage of pro­ <2) In buyer’s new or recleaned sacks, charge, or discount, premium or other tein therein delivered at any point within $0.50. privilege or by tying-agreement or other the 48 states and the District of Colum­ (3) In buyer’s sacks of any other kind, trade understanding or otherwise. bia of the United States. $ 1 .00. Sec. 18. Records and reports. (a) 2. Section 5 is amended to read as fol­ (b) For sales of cottonseed hulls and Every seller subject to this regulation lows: hull bran: shall keep for inspection by the Office of (1) In seller’s sacks, the reasonable Price Administration for so long as the S ec. 5. Maximum prices for sales by all value of the sacks, not exceeding any Emergency Price Control Act of 1942, as persons of wet rendered tankage and maximum price thereon at the time of amended, remains in effect his custom­ dried blood, (a) The maximttm price the sale or delivery; ary records including, if any, all bills, in­ for the sale of domestic wet rendered (2) In buyer’s sacks, 50 cents per ton voices and other documents relating to tankage and dried blood, per ton, bulk, for the sacking. every sale or delivery of cottonseed oil S ec. 14. Sales of cottonseed oil meal, meal, cake, sized cake or pellets after ♦Copies may be obtained from the Office of cake, sized cake or pellets on basis of the effective date of this regulation. Price Administration. guaranteed minimum percentage of pro­ (b) Upon demand every such seller 2 Subject to the approval of the Bureau of tein and adjustment for deficiencies. shall submit such records to the Office of the Budget pursuant to the Federal Reports Act of 1942. (a) No person shall sell any domestic * 7 Fit. 8961; 8 F.R. 3313, 3533, €173. or imported cottonseed oil meal, cake, 18 PH. 4132, 5987, 7662. 10906 FEDERAL REGISTER, Thursday, A ugust 5, 1943

by any person shall be at the rate of P art 1418%-Territories and P ossessions Revised Maximum Price Regulation $5.53 for each percentage of ammonia [Rev. MPR 183,1 Amdt. 1] 183 is amended in the following respects: therein plus transportation charges from 1. Section 14 is hereby revoked. production plant thereof to the buyer’s PUERTO RICO receiving point by a usual route and A statement of the considerations in­ 2. Section 20 Table 3 is amended by method of transportation. volved in the issuance of this amend­ adding the category “Canned apples” (b) The maximum price for the sale ment, issued simultaneously herewith, and two new items to the category of imported wet rendered tankage and has been filed with the Division of the “Canned pears: Bartlett (Halves)” all dried blood, per ton, bulk, by any per­ Federal Register.* to read as follows: son shall be at the rate of $5.53 for each percentage of ammonia therein deliv­ Items and brand names Unit Price to Price at Bétail ered at any point within the 48 States wholesaler wholesale price * and the District of Columbia of the Canned apples: Per can United States. Reddi Maid______$3.45 $3.95 $0.21 Washington______3.85 4.40 .95 3. Section 6 (b) (2) is amended to Canned pears: Bartlett (Halves): read as follows: Tolo...... 6.40 7.35 .39 Penwald...... (2) For digester tankage, blood meal 6.00 6.90 .37 and blood flour, $5.53 for each percent­ age of ammonia in the dry or wet ren­ 3. Section 24 Table 8 is amended by adding two brands to the category dered tankage or dried blood used to “Tomato sauce” to read as follows: produce the same, plus $6.50 per ton and plus transportation charges from Items and brand names Unit* Price to Price at Bétail production plant of the digester tank­ wholesaler wholesale price age, blood meal or blood flour (or if im­ Per con­ ported, from port of entry thereof) to Tomato sauce: ■ tainer buyer’s receiving point by a usual route Libby Buffet...... $3.63 $4.17 $0.08 and method of transportation. S & W...... 3.72 4.28 This amendment shall become effec­ 4. Section 25 Table 10 is amended by adding four new categories to read as tive August 9, 1943. follows: (Pub. Laws 421 and 729, 77th Cong.; E.O. 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. Retail price Items and brand names • Unit Price to Price at 4681) wholesaler wholesale per con­ Issued this 3d day of August 1943. tainer P rentiss M. B rown, Lima beans, small, S & W______$6.03 $6.93 $0.37 Administrator. String beans, cut, S & W______4.98 5.73 " .31 Strineless green beans, cut. C h i l f o r d ...... 3.42 3.95 .21 [F. R. Doc. 43-12623; Piled, August 3, 1948; Spinach. Maryland, chief_____ ' 4.00 4.60 .25 3:06 p. m.]

P art 1364—F resh, Cured and Canned 5. Section 25a Table 10a is added to read as follows: Sec. 25a Maximum prices for certain canned vegetable juices sold or delivered M eat and F ish P roducts in the Territory of Puerto Rico. [MPR S89,1 Amdt. 5] CEILING PRICES FOR CERTAIN SAUSAGE ITEMS T a b l e 1 0 a .—M a x i m u m P r i c e s f o r C e r t a i n C a n n e d V e g e t a b l e J u i c e s AT WHOLESALE - Items and brand names Unit Price to ‘ Price at Retail price A statement of the considerations in­ wholesaler wholesale per can volved in the issuance of this amend­ ment, issued simultaneously herewith, V-Eight...... $1.80 $2.07 $0.22 has been filed with the Division of the Case 12/46 oz. cans _ _ . 3.83 4.40 .48 Federal Register.* Section 12 (c) (3) is added to read as 6. Section 36 Table 23 is amended by adding a new item to the category follows: “Quaker” to read as follows: (3) All meat products. On frank­ furters and bologna meeting the re­ Items and brand names Unit Price to Price at Retail price quirements for Grade AA and contain­ wholesàler wholesale per package ing no extender there may be added $0.50 per cwt.: Provided, That the seller Quaker: Farina Vito . . _ ...... $3.26 $3.60 $0.18 states on his invoice that the product is an all meat product containing no ex­ 7. Section 42 Table 33 is amended by adding a new brand to the table to read tender. Manufacturers .of frankfurters as follows: and bologna containing no extender may, in addition to the label required Sales to Sales at Sales at by section 4, mark such products, and wholesalers their containers, “All Meat.” wholesale retail This amendment shall become effec­ Price per tive August 9, 1943. pkg. National Starch Co. (edible)______$2.58 $2.85 $0.10 (Pub. Laws 421 and 729, 77th Cong.; Case 144/1 #"pkgs...... 9.30 10.25 .10 E. O. 9250; 7 F.R. 7871; E.O. 9328, 8 F.R. Case 96/1# pkgs______6.20 6.80 .10 4681) Issued this 3d day of August 1943. This amendment shall become effective as of July 15,1943. P rentiss M. B rown, (Pub. Laws 421 and 729,77th Cong.; E.O. 9250, 7 F.R. 7871) Administrator. Issued this 3d day of August 1943. [F. R. Doc. 43-12624; Filed, August 3, 1943; P rentiss M. B rown, 3:05 p. m.] Administrator. * Copies may be obtained from the Office [F. R. Doc. 45-12625; Filed, August 8, 1943; 3:08 p. m.] of Price Administration. 18 F.R. 5983, 6953, 6958, 6945, 8185, 8677. “T fT O i& a . FEDERAL REGISTER, Thursday, A ugust 5, 1943 10907

Part 1499—Commodities and Services (Pub. Laws 421 and 729, 77th Cong.; E.O. chargfe or receive for sausage subject to 9250, 7 F.R. 7871) this regulation a price higher than the [MPR 188,1 Amdt. 18] maximum prices permitted by this regu­ Issued this 3d day of August 1943. PLASTIC PIPE AND TUBING lation. No person shall as a condition Prentiss M. Brown, of selling any such sausage require a pur­ A statement of the considerations in­ Administrator. chaser to buy any other meat or any volved in the issuance of this amend­ other product: Provided, That a payment ment, issued simultaneously herewith [P. R. Doc. 43-12615; Piled, August 8, 1943; 3:04 p. m.] by a buyer to a seller for icing services has been filed with the Division of the performed by the seller after June 1, Federal Register.* 1943, and before delivery of sausage to a Maximum Price Regulation No. 188 is railroad whose charges are paid directly amended in the following respect: P art 1499—Commodities and Services to such railroad by the buyer shall not 1. The list of commodities in § 1499.166 be constituted as an evasion of such (a) (1) (iv) under the heading “Plumb­ [Order 583 Under S 1499.3 (b) of GMPR] price limitations, if the charge for SUch ing” is amended by adding a new com­ icing services is no higher than the cost modity as set forth below: WARREN LEE PARKINSON actually incurred by the seller in per­ plastic pipe and plastic tubing manufactured For the reasons set forth in an opin­ forming such service and in no event from co-polymer vinyl and vinylidene ion issued simultaneously herewith and higher than the charge which could law­ chlorides commercially known as “Saran fully have been made by the railroad if B 11.* filed with the Division of the Federal Register, It is ordered: such services had been performed by the This amendment shall become effec­ railroad. , tive August 9, 1943. § 1499.2121 Approval of a maximum price for a sale at retail of hand loaded This amendment shall become effec­ (Pub. Laws 421 and 729, 77th Cong.; ammunition manufactured by Warren tive August 3, 1943. E.O. 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. Lee Parkinson, (a) Warren Lee Parkin­ (Pub. Laws 421 and 729, 77th Cong.; Pub. 4681) son, 806 McKinley Avenue, Boise, Idaho, Law 151, 78th Cong.; E.O. 9250, 7 FR. Issued this 3d day of August 1943. may sell and deliver at retail his hand 7871; E.O. 9328, 8 F.R. 4681) loaded ammunition described in his ap­ Prentiss M. Brown, plication dated March 1, 1943, at a price Issued this 3d day" of August 1943. Administrator. no higher than $4.30 per box of twenty P rentiss M. .Brown, Administrator. [P. R. Doc. 43-12626; Piled, August 3, 1943; shells, f. o. b. Boise, Idaho. 3:05 p. m.] (b) This Order No. 583 may be revoked [F. R. Doc. 43-12651; Piled, August 4, 1943; or amended by the Price Administrator 11:57 a. m.] at any time. Part 1499—Commodities and Services This Order No. 583 shall become effec­ [Order 87 Under SR 15 $p GMPR] tive on the 16th day of July 1943. Part 1499—Commodities and Services LAWRENCE E. BOND, ET AL. (Pub. Laws 421 and 729, 77th Cong.; E.O. 9250, 7 F.R. 7871, E.O. 9328, 8 F.R. 4681) [Order 593 Under § 1499.8 (b) of GMPR] Order No. 87 under § 1499.75 (a) (3) of Supplementary Regulation No. 15 to Issued this 15th day of July 1943. WELLS MANUFACTURING CO. the General Maximum Price Regulation; P rentiss M. Brown, For the reasons set forth in an opin­ Docket No. GF3-3174. Administrator. ion issued simultaneously herewith, and For the reasons set forth in an opinion [F. R. Doc. 43-12631; Filed, July 15, 1943; filed with the Division of the Federal issued simultaneously herewith, It is 2:18 p. m.] Register, It is hereby ordered: ordered: § 1499.2131 Approval of maximum § 1499.1387 Adjustment of maximum prices for the sale of cherry blocking “prices for contract carrier services sup­ wood by Wells Manufacturing Company. plied by Lawrence E. Bond, Baltimore, P art 1364—Fresh, Cured and Canned (a) Wells Manufacturing Company, Maryland, et al. (a) Lawrence E. Bond, Meat and F ish Products South Bend, Indiana, may sell and de­ doing business as Bond Transfer, of liver, and any person may buy from said Baltimore, Maryland;^ Catherine B. * [MPR 389,1 Amdt. 6] company, 18 and 21 gauge cherry block­ Moser, doing business as C. B. Moser, ing wood at prices no higher than those of Owings Mill, Maryland; Hiram G. CEILING PRICES FOR CERTAIN SAUSAGE ITEMS AT WHOLESALE hereinafter set forth. Winebarger, doing business as Valley Maximum price Transport Lines, of Owings Mill, Mary­ A statement of the considerations in­ Per square land; and Liberty Transfer Company, volved in the issuance of this amend­ Size and description: foot delivered Inc., of Baltimore, Maryland, may sell ment has been issued simultaneously 18 and* 2l gauge, paneled cherry— $0.40 and deliver contract carrier services to herewith and filed with the Division of 18 and 21 gauge, random width----- 0.24 the Chesapeake Paperboard Company, of the Federal Register.* 18 and 21 gauge, glued------0.29 Baltimore, Maryland, at prices not to Maximum Price Regulation No. 389 is (b) All customary discounts and al­ exceed prices established by them in amended in the following respects: lowances in use by applicant during scheduies issued January 2, 1943, filed 1. Item 1 of the table contained in sec­ March 1942 shall apply to the prices au­ with the Interstate Commerce Commis­ tion 12 (a) is amended by the addition thorized herein. sion, and made effective February 1, of footnote “ 1 ” to follow the word “Pork” (c) This Order No. 593 may be revoked 1943. and to appear below the table, to read or amended by the Price Administrator (b) All requests of the application not as follows: granted herein are denied. at any time. »On sales of pork sausage in sheep cas­ This order shall become effective Au­ (c) This Order No. 87 (§ 1499.1387) ings, packaged in 1 pound wax paper car­ may be revoked or amended by the Price tons, seller may add $1.00 per hundredweight. gust 5, 1943. Administrator at any time. (Pub. Laws 421 and 729, 77th Cong.; E.O. (d) This Order No. 87 (§ 1499.1387) 2. Section 7 is amended to read as fol­ shall become effective as of February 1, lows: 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. 4681) 1943.. Sec. 7. Indirect price increases. No Issued this 4th day of August 1943. person shall evade any of the provisions P rentiss M. Brown, •Copies may be obtained from the Office of of this regulation by any scheme or de­ Administrator. Price Administration. vice and no person shall indirectly 17 P.R. 5872, 7967, 8943, 10155, 8 F.R. 537, [P. R. Doc. 43-12652; Filed, August 4, 1943; 1815* 1980, 3105, 3788, 3850, 4140, 4931, 5759, 11:57 a. m.] 7107, 8751, 8754, 9836. 18 P.R. 5903, 6958, 6945, 8185, 8677. 10908 FEDERAL REGISTER, Thursday, A ugust 5, 1943

Part 1499—Commodities and Services Part 1527—Marketing Asphalt $15.00 per calendar year for each house­ [Order 594 Under S 1499.3 (b) of GMPR] [Petroleum Dir. 66 as Amended May 22, 1943, boat. Permits will continue in force Amdt. 1] until the end of the calendar year in CURTICE BROTHERS CO. which issued, unless sooner terminated For the reasons set forth in an opinion CERTAIN TEST REQUIREMENTS by the permittee or revoked by the Proj­ Issued simultaneously herewith, It is Section 1527.1 Petroleum Directive ect Engineer with refund of the un­ ordered: No. 66 is hereby amended by changing earned portion of the charge paid: Pro­ paragraph (c) (1) to read as follows: vided, That if revoked by the Project § 1499.2132 Authorization of maxi­ (c) Special provisions. (1) At the op­ Engineer for a violation of law or of these mum prices for sales of “Tasty 7," a tion of the purchaser, the Oliensis Spot regulations no refund will be made. The liquid product containing vinegar, spices, Test, A.A.S.H.O. designation T102-38 Project Engineer will furnish the per­ sugar, salt and spice oils, packed in 8- may be required in addition to Federal mittee license numbers for each boat, ounce bottles, 24 bottles to the case, which must be displayed in a conspicuous Specifications only for asphalt for use place on each of the outer sides of the manufactured by Curtice Brothers Co., on surfaces on which aircraft travel. Rochester, New York, (a) On and after boat, and the permittee shall keep in his For all other surfaces, at the option of possession and available for inspection August 5, 1943, the maximum selling the purchaser, the Heptane-Xylene the permit granted to' him. price for sales by Curtice Brothers Co., Equivalent Spot Test, A.A.S.H.O. desig­ 2. Use of land for wharfs and boat­ Rochester, New York, of “Tasty 7,” a nation T102-42, using 35% Xylene and houses. Where desired and if deemed by liquid product containing vinegar, spices, 65% normal Heptane may be required the Project Engineer not detrimental to sugar, salt and. spice oils, shall be $1.38 in addition to Federal Specifications. the interest of the United States, there per dozen 8-ounce bottles, f. o. b. fac­ may be granted to a permittee, in addi­ tory, packaged 24 bottles to the case. (E.O. 9276, 7 F.R. 10091; E.O. 9125, 7 tion to the general landing privilege con­ (b) Curtice Brothers Co. is not re­ F.R. 2719; sec. 2 (a), Pub. Law 671, 76th ferred as an accompaniment to the boat­ quired to apply any discounts to the Cong., as amended by Pub. Laws 89 and ing permit contemplated by paragraph 1 maximum price authorized by para­ 507, 77th Cong.) hereof, the exclusive privilege to use and graph (a). occupy, in connection with such boating Issued this 5th day of August 1943. permit, a certain described tract of land (c) This Order No. 594 may be re­ R alph K. Davies, voked or amended by the Price Admin­ belonging to the United States and abut­ Deputy Petroleum ting the reservoir shoreline. A charge of istrator at any time. Administrator for War. (d) This Order No. 594 shall become $7,50 per calendar year will be made for effective August 5, 1943. [F. R. Doc. 43-12646; Filed, August 4, 1943; the use of such land where the same is 11:25 a. m.] to be used only for a private wharf or as (Pub. Laws 421 and 729, 77th Cong.; E.O. combined private wharf and boathouse 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. 4681) site: Provided, That, when any wharf or Hsued this 4th day of August 1943. combined wharf and boathouse site is TITLE 43—PUBLIC LANDS: INTERIOR P rentiss M. Brown, used for hire, a charge shall be fixed ac­ Administrator. Chapter II—Bureau of Reclamation, cording to the capacity of such improve­ ments, but in no case less than $15.00 per [F. R. Doc. 43-12653; Filed, August 4, 1943; Department of the Interior * 11:57 a.m.] calendar year for each wharf; and $30.00 P art 451—Boat and Wharf P rivileges on per calendar year for each combined Certain R eservoirs 1 wharf and boathouse site. All wharves and boathouses shall be constructed in Chapter XIII—Petroleum Administration GREEN MOUNTAIN RESERVOIR, COLORADO-BIG a substantial and workmanlike manner for War THOMPSON PROJECT satisfactory to the Project Engineer. [PAO 11, Amdt. 1] 1. Permits. Any person desiring to Neither the use nor occupation of the keep or operate a boat or to construct land shall be transferred or sublet by P art 1515—P etroleum P roduction and maintain a. wharf or boathouse on the permittee without the consent of the Operations the Green Mountain Reservoir will first Project Engineer, and the permit shall ELIMINATION OF CERTAIN LOUISIANA FIELDS be required to obtain a permit to do so terminate and all right or interest of the Section 1515.6 Petroleum Administra­ from the Project Engineer of the Bureau permittee thereunder shall cease upon tive Order No. 11 is hereby amended by of Reclamation, EStes Park, Colorado. the service of notice on the permittee eliminating from Exhibit A thereof the For the issuance of such a permit there because of failure to observe such condi­ Lake Chicot field, located in St. Martin will be charged the sum of $1.50 per tion. The Project Engineer will furnish Parish, South Louisiana, and thè Schuler calendar year for each rowboat or canoe, the permittee license numbers which Lime pool of the Sligo field, located-in the sum of $3.00 per calendar year for must be displayed in a conspicuous place Bossier Parish, North Louisiana. each sailboat or power boat, and the sum on the wharf or on the outer side of the (E.O. 9276, 7 F.R. 10Q91; E.O. 9125, 7 of $7.50 per calendar year for each boathouse. F.R. 2719; sec. 2 (a), Pub. Law 671, 76th houseboat: Provided, That where any 3. Rates to be charged by permittees. Cong., as amended by Pub. Laws 89 and such boat is used for hire or for the car­ Where boats, wharves or boathouses are 507, 77th Cong.) riage of persons or property for compen­ used for hire or for the carriage or ac­ Issued this 2d day of August 1943. sation, a charge shall be fixed according commodation of persons or property for to the capacity thereof, but in no case compensation, the permittee shall file R. K. Davies, less t.han $3.00 per calendar year for with the Project Engineer certified copies Deputy Petroleum each rowboat or canoe, $7.50 per calendar of schedule of rates: Provided, That the Administrator for War. year for each sailboat or power boat, and rates to be charged persons engaged in [F. R. Doc. 43-12630; Filed, August 3, 1943; the survey, construction, and operation 8:23 p. m.] 1 Affects tabulation in part 451. and maintenance of the Green Mountain FEDERAL REGISTER, Thursday, A ugust 5, 1943 10909

Reservoir and Dam or any works in con­ and distinct blasts of her whistle as an directed by the Project Engineer, and nection therewith shall not exceed one- indication of her intention to continue the permittee shall locate and construct half of such rates. on her course, which the other boat shall outhouses and cesspools as directed by 4. Rowboats and canoes. Each boat answer promptly by two similar blasts of the Project Engineer, and shall observe shall, when in use at any time between her whistle, and thereupon each boat all sanitary regulations for the reservoir sunset and sunrise, carry a lantern or area which may be promulgated by the $hall pass on the starboard, or right, side Project Engineer. other suitable light visible all around the of the other. 11. Fishing and hunting. Fishing in horizon. (d) When two boats are crossing so as the waters of the reservoir will be per­ 5. Sailboats and power boats, (a) to involve risk of collision, the boat which mitted upon compliance with the laws, Prom sunset to sunrise, boats under way has the other on her starboard, or right, rules and regulations prescribed by the shall carry signal lights, and during such side shall keep out of the way of the other State of Colorado but subject to such ad­ time no other lights that may be mis­ boat. ditional regulations as it may be neces­ taken for those prescribed shall be ex­ (e) A boat overtaking any other boat sary for the United States to make for hibited. Each boat shall carry a white shall keep out of , the way of the over­ the protection of the reservoir, canals, light aft, to show around the horizon, and taken boat. diversion works, buildings or structures a combination lantern in the fore part of (f) No boat shall approach, pass, or belonging to the United States. Hunt­ the boat to show green to the right and be located within five hundred (500) feet ing of any kind is prohibited on the red to the left so fixed as to throw the of any structure or other appliance con­ reservoir or the lands bordering thereon. light from right ahead to two points abaft structed, operated or maintained by the 12. Camp fires. The building of camp the beam on their respective sides. In United States in connection with the fires or any other fires within the reser­ addition, a white light may be used in Green Mountain Reservoir, nor within voir area is prohibited except as may be the center of the boat near the bow., but twenty-five hundred (2,500) feet of the permitted in accordance with existing the aft light shall be higher than the Green Mountain Dam or appurtenant Forest Service or other regulations, or forward lights and so placed as to form a works. regulations which may be promulgated range therewith and shall be clear of 7. Responsibility of owners. Boats, by the Project Engineer. house, awnings and other obstructions. which in the opinion of th^ Project En­ 13. Violation of regulations. The (b) From sunset to sunrise, a boat at gineer, whose opinion shall be final and permit of any person, violating any of anchor while in use shall carry forward, conclusive, are not properly constructed, where it can best be seen, at a height not operated or maintained, shall not be per­ the foregoing regulations, may be re­ exceeding 20 feet above the hull, a white mitted to be placed or remain on the voked by the Project Engineer and such light visible all around the horizon. waters of the reservoir. All boats shall person shall remove his boat, wharf or (c) Each boat shall benprovided with be securely anchored or tied up when not boathouse from the reservoir and lands an anchor of sufficient size and rope of in use. Boats found floating loose on belonging to the United States; failing sufficient length and strength to hold the the reservoir will be taken up and the to do so, the boat may be impounded and boat in case of accident; with two or more permittee shall be liable to the United sold or otherwise disposed of, or the boat­ oars; and with efficient life preservers States for any expense incurred in mak­ house or wharf may be removed or de­ equal in number to the maximum number ing the boat secure. Owners of power stroyed by the United States without of persons to be carried. boats shall not permit the operation liability of the United States to the (d) Each boat shall be provided with thereof for passenger service by any per­ owner. a whistle or other sound-producing me­ son not competent to handle the 14. Waiver of’ liability. The main chanical appliance capable of producing machinery. purpose of the Green Mountain Reser­ a blast of two seconds’, or more, duration. 8. Order. No intoxicated person shall voir is to impound water for irrigation A mouth whistle that can be heard at be permitted Upon land within the and other regulatory purposes. Accord­ least one-half mile will be held in com­ reservoir area belonging to the United ingly, any person at any time going in or pliance with this rule. States or wharves or boathouses con­ upon the waters thereof or upon any of 6: Rules of travel, (a) When boats structed thereon, or boats on the waters the structures or lands upon the margin are approaching each other head-on or of-the reservoir, nor shall any person thereof or upon adjacent lands belonging so nearly as to endanger collision, it shall take any intoxicating liquor upon such to the United States and held or re­ be the duty of each to turn to the right land, wharf, boathouse or boat. The served for the use in connection there­ and to pass to the port, or left, side of person in charge of such boat, wharf or with, whether as licensee or permittee the other. boat house shall preserve order therein of the United States or otherwise, (b) Whenever power boats are so ap­ or thereon and shall extend courteous thereby assumes all risk of injury to or proaching, either boat shall give, as a treatment to passengers and persons death of himself or damage to or de­ signal of her intention, one short and dis­ therein or thereon. struction of property resulting directly tinct blast of her whistle which the other 9. Firearms. The carrying of firearms or indirectly, wholly or in part, from said boat shall answer promptly by a similar in or upon the land within the reservoir reservoir or appurtenant structures or blast of her whistle, and thereupon each area belonging to the United States or their construction, operation and control boat sh^ll pass on the port, or left, side in or on any boat, boathouse or wharf by the United States. of the other. by any person shall not be permitted. Approved: July 26, 1943. (c) If the course of the approaching 10. Sanitation. No bottles, cans, gar­ Michael W. Straus, boats is so far to the starboard, or right, bage, rubbish or refuse of any kind shall First Assistant Secretary. side of each other as not to endanger be thrown into the waters of the reser­ [P. R. Doc. 43-12632; Piled, August 4, 1943; collision, either boat shall give two sharp voir, but the same shall be disposed of as 9:59 a. m.] 10910 FEDERAL REGISTER, Thursday, A ugust 5, 1943

TITLE 46—SHIPPING in either straight or mixed carloads, on § 501.76 Number of wholesale and re- any railroad track scales when such jail deliveries limited, (a) * * *; Chapter IV—War Shipping traffic originates on or after the effective Administration (3) * * *: date of this order at Jury, Texas (billing (viii) To deliveries of property sold [General Order 29,1 Supp. 4] point Texarkana, Texas), and is destined to Daingerfield, Texas, for use by the upon orders received by mail, telephone, P art 341— S h ip W arrant R ules and Austin Bridge Company, except that a or any other system of public communi­ R egulations limited number of cars may be weighed cation; SUSPENSION OF RATE CEILINGS FOR CERTAIN as is necessary to obtain average weights. (ix) To deliveries of property to the VESSELS The operation of all tariff rules or regu­ address of a person, other than the pur­ lations insofar as they conflict with the chaser, which person is to retain General Order 29 (§ 341.75 Suspension provisions of this order is hereby sus­ possession of the property; of rate ceilings with respect to vessels of pended. less than 1,000 gross tons), as amended, (x) , To deliveries made to return or is amended by striking out the word, “Au­ (b) Announcement of suspension. replace property delivered in error or gust”, and inserting in lieu thereof the Each of such railroads shall publish, file, property damaged in delivery. word, “October.” and post a supplement to each of its tariffs affected hereby, in substantial ac­ This Amendment 5 to General Order (E.O. 9054, 7 F.R. 837) cordance with the provisions of Rule 9 ODT 17 shall become effective on August [SEAL] E. S. LAND, (k) of the Commission’s Tariff Circular 5, 1943. No. 20 (§ 141.9 (k) of this chapter) an­ Administrator. (E.O. 8989, 9156; 6 F.R. 6725, 7 F.R. 3349) August 3, 1943. nouncing the suspension of any of the provisions therein. Issued at Washington, D. C., this 4th [P. R. Doc. 43-12645; Piled, August 4, 1943; 11:13 a. m.] (40 Stat. 101, sec. 402, 41 Stat. 476, sec. day of August, 1943. 4, 54 Stat. 901; 49 U.S.C. 1 (10)—(17) ). J oseph B. Eastman, It is further ordered, That this order Director, shall become effective at 12:01 a. m„ Office of Defense Transportation. TITLE 49—TRANSPORTATION AND August 4, 1943, and that a copy of this [P. R. Doc. 43-12650; Piled, August 4, 1943; RAILROADS order and direction shall be served upon the Association of American Railroads, 11:37 a. m.] Chapter I—Interstate Commerce Car Service Division, as agent of the Commission railroads subscribing to the car service N otices [Service Order 142] and per diem agreement under the terms of that agreement; and that notice of Part 95—Car Service this order be given to the general public by depositing a copy in the office of the CIVIL AERONAUTICS BOARD. SAND OR GRAVEL SHIPMENTS TO DAINGERFIELD, Secretary of the Commission at Wash­ [Docket No. 854] TEXAS ington, D. C., and by filing it with the At a session of the Interstate Com­ Director, Division of the Federal U nited Air Lines T ransport Corporation merce Commission, Division 3, held at its Register. office in Washington, D. C., on the 3d day NOTICE OF ORAL ARGUMENT of August, A. D. 1943. By the Commission, Division 3. It appearing that shipments of sand [seal] w . P. Bartel, - In the matter of the application of and gravel in carloads originating at Secretary. United Air Lines Transport Corporation Jury, Texas (billing point Texarkana, [P. R. Doc. 43-12634; Piled, August 4, 1943; for approval of the acquisition by United Texas), and destined to Daingerfield, 10:50 a. m.] Air Lines Transport Corporation of con­ Texas, for use by the Austin Bridge trol of Lineas Aereas Mineras, S. A. Company are being weighed on railroad (Lamsa), a Mexican corporation. track scales, thus impeding the use, con­ Notice is hereby given, pursuant to sec­ trol, supply, movement, and distribution Chapter II—Office of Defense Trans­ portation tions 1001 and 408 of the Civil Aeronau­ of cars; in the opinion of the Commis­ tics Act of 1938, as amended, that oral sion an emergency exists requiring im­ [General Order ODT 17, Amdt. 5] argument in the above-entitled proceed­ mediate action to avoid a shortage of ing is assigned to be held on August 13, equipment and congestion of traffic; P art 501— Conservation of. M otor E quipment 1943,10 a. m. (eastern war time) in Room It is ordered, That: 5042 Commerce Building, 14th Street and § 95.24 Carloads of sand or gravel SUBPART K— MOTOR CARRIERS OF PROPERTY Constitution Avenue NW., Washington, destined to Daingerfield, Texas, for use Pursuant to Executive Orders 8989 and D. C., before the Board. by Austin Bridge Company, not to be 9156, It is hereby ordered, That, sub- Dated Washington, D. C., August 3, weighed, (a) No common carrier by paragraph (3) of paragraph (a) of 1943. railroad subject to the Interstate Com­ § 501.76 of General Order ODT 17, as By the Civil Aeronautics Board. merce Act shall weigh, or permit to be amended (7 F.R. 5678, 7694, 9623; 8 F.R. [seal] F red A. T opmbs, weighed, any shipment of sand or gravel 8278, 8377), is amended by adding there­ Secretary. to subdivisions (viii), (ix), and (x), to *8 F.R. 1597, 2605, 4525, 9230. [F. R. Doc. £3-12633; Piled, August 4, 1943; read as follows: 10:02 a. m.] FEDERAL REGISTER, Thursday, A ugust 5, 1943 10911

OFFICE OF ALIEN PROPERTY CUS­ may be allowed by the Alien Property the meanings prescribed in section 10 Custodian. Nothing herein contained of said Executive Order. TODIAN. shall be deemed to constitute an ad­ Executed at Washington, D. C., on July [Vesting Order 1825] mission of the existence, validity or right 17, 1943. A ba n d o n ed P a t e n t A pplications o p N a­ to allowance of any such claim. The terms “national” and “designated [ s e a l ] L e o T. C r o w l e y , t io n a l s o p E n e m y -O c c u p ie d C o u n ­ enemy country” as used herein shall have Alien Property Custodian. t r ie s Under the authority of the Trading Exhibit A with the Enemy Act, as amended, and Patent applications in tbe United States Patent Office which are identified as follows: Executive Order No. 9095, as amended, and pursuant to law, the undersigned, Nat. Serial Filing Owner Inventor Title code after investigation: No. date 1. Finding that each of the persons to Process for the manufacture of 27 whom reference is made in the column 13,760 3/29/35 Etablissements Expert- J. Expert-Bezancon... headed “Owner” in Exhibit A attached Bezanson. metallic powders. Compagnie de Produits Chi­ M. Fournier____ .... Process for obtaining 1,1,2 tri- 27 hereto and made a part hereof if an individ­ 76,088 4/23/36 chlorethane. ual, is a citizen and resident of, or, if a miques et Electrometal- business organization, is organized under the lurgiques Alais, Frogea et Cam arque. E. Fischer et al...... Synthesis oi hydrocarbons under 17 laws of and has its principal place of business 125,633 2/13/37 Eduard Fischer & Bruno Donath. ultra-pressure. in, the country represented by the code num­ E. Lege.. Method for preparing products 27 ber set forth after its respective name in said 178,600 12/ 7/37 Edouard F. M. R. Lege----- of the hydrocarbon type. Exhibit A under the heading “Nat” in ac­ IL Hoog. Production of aromatic bydro: 49 222,451 8/ 1/38 Han Hoog. carbons. cordance with the following: Manufacture of diphenylamine.. 27 249,748 1/ 7/39 Société Des Usines Chimiques I. Scriabine. 17 Czechoslovakia. Bhone-Poulene. C. Seal...... Process for combining elemen­ 17 27 France. 251.040 1/14/39 Clair Seal______tary nitrogen with hydrogen. 49 The Netherlands. A. Girard et al. Process for quantitatively ob­ 27 265,342 3/31/39 Andre Girard & Georges taining hydroxy, compounds. 51 Norway. Sandulesco. Treatment of waste sulphite 51 291,101 8/19/29 Norsk Hydro’Elekstrisk C. Andersen... and is therefore a national of such foreign Kvaelstofaktieselskab. liquor. Schneider & Cie------— F. Walckenaer. Ingot moulds and the castings of 27 country or countries respectively: 263,622 9/ 6/39 ingots. 2. Finding that the patent applications Process for the production of the 27 306.41 11/27/39 Société Anonyme des Manu­ A. Comillot__ and other property related thereto described factures Des Glaces et Prod­ acrylic esters and their poly­ in subparagraph 3 hereof are property of the uits Chimiques De Saint- merisable substitution deriva­ persons whose names appear in the column Gobain, Chauny & Cirey. tives. Etablissement Mouneyrat— A. Mouneyrat. Production of salts o. para- 27 headed “Owner” opposite the respective 314,444 1/18/40 aminophenylsulfamides. numbers thereof in said Exhibit A; Carl Sandei Neuberg------C. Neuberg__ Process for the production of 49 3. Finding, therefore, that the property 320,517 2/23/40 saccharic acid. described as follows: Patent applications identified in Exhibit [F. R. Doc. 43-12578; Filed, August 3, 1943; 10:31 a. m.] A attached hereto and made a part hereof, together with the entire right, title and in­ terest throughout the United States and its territories in and to, including the right [Vesting Order 1827] is property of nationals of foreign countries to file applications in the United States Pat­ (Germany, Hungary, Italy and Japan); ent Office for Letters Patent for, the inven­ A b a n d o n ed P a t e n t A pplications o f 4. Having made all determinations and tion or inventions shown or described in such N a t io n a l s o f E n e m y C o u n t r ie s taken all action, after appropriate consulta­ tion and certification, required by said Execu­ applications, Under the authority of the Trading is property of nationals of foreign countries tive Order or Act or otherwise; and (Czechoslovakia, France, The Netherlands, with the Enemy Act, as amended, and 5. Deeming it necessary in the national in­ and Norway): Executive Order No. 9095, as amended, terest; 4. Having made all determinations and and pursuant to law, the undersigned, hereby vests in the Alien Property Cus­ taken all action, after appropriate consulta­ after investigation: todian the property described in sub- tion and certification, required by said Ex­ 1. Finding that each of the persons to paragraph 3 hereof, to be held, used, ecutive Order or Act or otherwise; and whom reference is made In the column administered, liquidated, sold or other­ 5. Deeming it necessary in the national headed “Owner” in Exhibit A attached hereto interest; wise dealt with in the interest of and and made a part hereof if an individual, is for the benefit of the United States. hereby vests in the Alien Property Cus­ a citizen and a resident of, or if a business organization, Is organized under the laws of Such property and any or all of the todian the property described in sub- and has its principal place of business in, the proceeds thereof shall be held in an ap­ paragraph 3 hereof, to be held, used, ad­ country represented by the code number set propriate account or accounts, pending ministered, liquidated, sold or otherwise forth after its respective name in said Ex­ further determination of the Alien Prop­ dealt with in the interest of and for the hibit A under the heading “Nat” in accord­ erty Custodian. This order shall not be benefit of the United States. ance with the following: deemed to limit the powers of the Alien Such property and any or all of the 28 Germany. Property Custodian to return such prop­ proceeds thereof shall be held in an ap­ 34 Hungary. erty or the proceeds thereof in whole propriate account of accounts, pending 38 Italy. or in part, nor shall it be deemed to further determination of the Alien Prop­ 89 Japan. indicate that compensation will not be erty Custodian. This order shall not be and is therefore a national of such foreign paid in lieu thereof, if and when it should deemed to limit the powers of the Alien country or countries, respectively; be determined to take any one or all of Property Custodian to return such prop­ 2. Finding that the patent applications and such actions. erty or the proceeds thereof in whole or other property related thereto described in Any person, except a national of a in part, nor shall it be deemed to indi­ subparagraph 3 hereof are property of the persons whose names appear in the column designated enemy country, asserting any cate that compensation will not be paid claim arising as a result of this Order in lieu thereof, if and when it should be headed “Owner” opposite the respective num­ bers thereof in said Exhibit A; may file with the Alien Property Cus­ determined to take any one or all of 3. Finding, therefore, that the property de­ todian a notice of his claim, together such actions. scribed as follows: with a request for a hearing thereon, on Any person, except a national of a des­ Patent applications identified in Exhibit A ignated enemy country, asserting any attached hereto and made a part hereof, to­ Form APC-1, within one year from the claim arising as a result of this order gether with the entire right, title and interest date hereof, or within such further time may file with the Alien Property Custo­ throughout the United States and its terri­ as may be allowed by the Alien Property tories in and to, including the right to file Custodian. Nothing herein contained dian a notice of his claim, together with applications in the United States Patent Of­ a request for a hearing thereon, on Form fice for Letters Patent for, the invention or shall be deemed to constitute an admis­ APC-1, within one year from the date inventions shown or described in such ap­ sion of the existence, validity or right to hereof, or within such further time as plications, allowance of any such claim. No. 154-----8 The terms “national” and “designated Executed at Washington, D. C., on Exhibit A—Continued 10912 enemy country” as used herein shall have July 17, 1943. the meanings prescribed in section 10 [seal] Leo T. Crowley, Serial Filing Owner Nat. of said Executive Order. Alien Property Custodian. No. date Inventor Title code

Exhibit A 236,119 10/20/38 Zoltan Foldi and Rezso Z. Foldi et al___ ..... Process for preparing water 34 König. soluble derivatives of amino- Patent applications in the United States Patent Office which are identified as follows: benzene sulpbamide. 236,911 10/25/38 Walter Reppe, Otto Hecht W. Reppe et al______Process for the production of 28 and Adolf Steinhofer. tetrahydrofuranes. Serial Piling 238,061 10/31/38 No. Owner Inventor Title Nat. Chemische Werke Albert...... E. Eidebenz__...... Production of tetrahydro-p-oxa- 28 date code zinoalkyl-aryl oxygen com­ pounds. 240,075 11/12/38 46,334 Konrad Keller______K. Keller...... Method for producing chlorin­ 28 10/23/35 Henkel & Cie, G.m.b.H___ W. Hentrich et al___ Hydrogenated aryl compounds ated aliphatic hydrocarbons. containing hydroxyl groups. 243,656 12/2/38 Osamu Kamata______53,713 12/10/35 Leonid Andrussow Process for manufacturing pro­ 39 54,321 Production of alkyl halides____ 28 pylene glycol amines. 12/13/35 Friedrich M uth______■_ Ortho - hydroxycarboxylie acids 28 245,148 12/12/38 Ruetgerswerke. A. G______Process of producing pure naph­ 28 71,264 of the diphenylene series. thalene. - 3/27/36 Antonia Lilienfeld______Manufacture of cellulose deriva­ 28 245,754 12/14/38 Walter Hengstmann and Al- W. Hengstmann et al. Method of producing thermo­ 28 tives. fred Keil. plastic artificial resins and REGISTER, FEDERAL 90,897 7/16/36 Fritz Guenther______Production of water-soluble poly- 28 device for performing such oxy-alkylene compounds. method. 109,549 11/6/36 Karl Koeberle and Otto K. Koeberle et al...... High-molecular organic com­ 245,868 12/15/38 Giorgio Martin Wedard Process for the manufacture of 38 Schlichting. 28 119,471 pounds. synthetic liquid or gaseous 1/7/37 Martin Mueller-Cunradi and M. Cunradi et al___ Manufacture of crotonaldehyde. 28 products,obtainable from gase­ Heinz Krekeler. ous constituents. 122,085 1/23/37 Karl Dachlauer and Erwin ' K. Dachlauer et al..»' Process of preparing higher 28 246,092 12/16/38 Wilhelm Rohn, Franz Bol- W. Rohn et al...... Farts of apparatus resistant to 28 Schnitzler. lenrath and Heinrich Cor­ 140,694 chlorinated methanes. high stresses and tempera­ 6/4/37 Gerhard Balle and Karl Horst. G. Balle et al______Polybasic oxygen-containing 28 nelius. tures. mineral acid esters of isocy- 247,035 12/21/38 Christian Steigerwald and C. Steigerwald et al__ Pyridinoanthraquinones______28 Karl Koeberle. 140, 695 clic alcohols. 5/4/37 Gerhard Balle and Karl G. Balle et al____ .... Polybasic oxygen containing 28 250,164 1/10/39 Edmund Waldmann and E. Waldmann et al___ Sulfonates of organic compounds 28 Horst. mineral acid esters of isocyclic August Chwala. and a process of preparing 154,012 thioethers. them. 7/16/37 Karl Daimler and Carl Platz.. K. Daimler et al _ . Esters derived from isocyclic 28 250,927 1/14/39 Ludwig Orthner, Carl Platz, Capillary active compounds 28 compounds and process of Hans Keller and Heinz and process of preparing them. Sonke. 155,002 making them. 7/22/37 Henkel & Cie G. m. b. H Preparation of hydroaromatic 28 252,069 1/21/39 Carl August Hornung.. _ .. Aliphatic-aromatic amines and 28 mtrogen compounds. process for their production. 158,819 8/12/37 Edmund Waldmann and Aug­ E. Waldmann et al... Quaternary amino compounds 252,630 1/24/39 Hanns Ufer, Willi Schmidt, H. Ufer et al___ _ _ High-molecular compounds of 28 ust Chwala. and process of preparing them. and Max Mattauch. the type of polyamides and ugust A Thursday, 162,279 - 9/3/37 Detlef Delfs...... D. Delfs.. . Sulphones.....•_...... 28 process of producing same. 172,989 11/5/37 Heraens Vacuum-schmelze A. W. Hessenbrueh..... Beryllium-copper alloys...... 28 253,806 1/31/39 Walter Reppe and Richard W. Reppe et al . Process for the production of' 28 Schnabel. dihydrofur anes. 176,914 11/27/37 Walter Schulze and Hans W. Schulze et al Process of preparing alkyl chlor­ 28 253,807 1/31/39 Walter Reppe & Richard W. Reppe et al ... .. Process for the production of 28 Aickelin. ides. Schnabel. dihydrofuranes. 180,155 12/16/37 Heinrich Ulrich...... Process for the purification of al- 28 254,237 2/2/39 Wolfgang Winkelmuller____ Extraction of phenols______28 kylene oxides. 255,556 2/9/39 Heinrich Groh and Albert Process of distilling wood...___ 28 180,611 12/18/37 Karl Koeberle and Otto K. Koeberle et al High-molecular organic com­ 28 Mag. Schlichting. pounds. 255,783 2/10/39 Heko-Werk Chemische Fab- A. Keil______Method of producing artificial 28 180,916 12/20/37 Seishichi Shikata and Yoshi- S. Shikata. _ . . Manufacturing process of aro­ 39 rik Dr. Hengstmann & Co. teeth, dental fillings, and den­ yuki Inoue. matic and aliphatic aldehydes tal bridges. or alcohols. 255,876 2/11/39 Willy Braun______Carboxylic acids of the phthalo- 28 183,458 1/5/38 Bruno Christ______Process of producing tertiary 28 cyanine series. aliphatic amines. 256,558 2/15/39 Hermann Schuette and Max Condensation products______28 184,679 1/12/38 Walter Klempt. __ _. Method for producing amine- 28 Wittwer. 5, nitriles. 261,316 3/11/39 Amaldo Corbellini-...... Process for the production of 38 190,223 2/12/38 Chemical Works of Gedeon L. Vareha et al ...... Derivatives of aromatic amino- 34 esters of the 2-keto-levo- Richter, Ltd. sulfamids and a method for \ gulonic acid. 1943 their production. 263,292 3/21/39 Bayerische Stickstoff-Werke H. Franek et al Method of producing resin-like 28 192,554 2/25/38 Adolf Steindorff, Gerhard A. Steindorfi et al...... Water - soluble urethane - like 28 A. G. condensation products. Balle, Karl Horst and compounds. 264,233 3/25/39 Ludwig Zeehner...... Process for obtaining and purify­ 28 Johann Rosenbach. ing glycosides. 195,958 3/15/38 Gerhard Balle and Heinz G. Balle e ta l______Process of preparing aryl fatty 28 265,942 4/4/39 Bakelite G. m. b. H ___ Process for the production of 28 Schild. acids substituted in the magnesium phenolates. nucleus. 274,034 5/16/39 Heinz v. Leibitz-Piwnicki... H. Leibitz PiwnickL. Alkali alcoholates______28 203,509 4/22/38 Alfred Kreidler______Apparatus for the continuous 28 275,513 5/24/39 Deutsche Gold und Silber Extraction of aliphatic acids---- 28 casting of ingots. Scheideaustalt vormals 211,562 6/3/38 Heinz Hunsdiecker, Heinrich H. Hunsdiecker et al. Preparation of lactones____ .... 28 Roessler. Erlbach and Egon Yogt. 276,248 5/27/39 Wilhelm Bauer Georg Rosch Leuco sulfuric acid ester....__ 28 221,394 7/26/38 Wilhelm Rohn, Franz Bol- W. Rohn et al .... . Cobalt- nickel - chromium-iron 28 and Bernhard Bollweg. lenrath and Heinrich Cor­ alloys. 277,892 6/7/39 Production of pyrroles...... 28 nelius. Hartmann. 221, 716 7/28/38 Wilhelm Fitzky and Gerhard W. Fitzky et al______j Acetals of halogenated alkoxy- 28 278,982 6/13/39 Carl Blank K. G______. Process for the production of 28 Cramer. aldehydes and a process of polysulphides of organic bases preparing them. and of their solutions. 225,990 8/20/38 Vereinigte Oelfabriken Hubbe K. Blass et al...... Process for the purification of 28 279,050 6/14/39 Fritz Guenther, Rudolf Beau- F. Guenther et al___ Sulfonic acids______28 and Farenholtz. organic acids obtained by the mler and Hans Hanssmann. oxidation of hydrocarbons. 280,347 6/21/39 Bruno Hennig Manufacture of ethylene per- 28 232, 854 1Q/1/38 Carl T. K au tter...... Alcoholysis of esters...... chloride and hexachlorethane. 235, 906 10/19/38 Friedrich Boedecker and F. Boedeeker et al Process for preparing a trisub- 284,218 7/13/39 Arthnr Greth... , , ..... A. Greth _ . . . T Softening agents and textile as­ Heinrich Gruber. stituted barbituric acid. sistants. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10913

Exhibit A—Continued tation, supplemental agreement of September 9, 1922, letter of December 11, 1939 from R. Avenarius & Company to Carbolineum Wood Nat. Serial Filmg Owner Inventor Title Preserving Company and cable of January No. ’date code 6, 1940 and letter of January 10, 1940 from Carbolineum Wood Preserving Company to

7 /2 8 /3 9 Giorgio Purkardhoier and G. Purkardhoier et al. Solder______38 R. Avenarius & Company) by and between R. 2 8 7 ,1 1 2 Gualtiero Battilana. Avenarius & Company and Carbolineum Wood Aromatic hydroxy carboxylic 28 2 9 0 ,4 9 6 8 /1 6 /3 9 August Bellefontaine------A. Bellefontame et al. Preserving Company, which agreement re­ Max L. Coenen and Ludwig acids with unsaturated side Muller. j chains and a process for the lates, among other things, po the trade-marks manufacture of the same. “Carbolineum”, “Avenarius Carbolineum”, 28 2 /1 7 /4 0 Heinrich Ulrich and Hans H. Ulrich et al...... Process for the production of "Carbolineum Avenarius” and “Avenarius”, 3 1 9 ,4 6 2 Sfanger. n-alkylene carbamic acid es­ ters. is propérty of, or is property payable or held G. Becker et al______Method for producing articles 28 3 2 2 ,4 7 9 3 /6 /4 0 Gottfried Becker, Karl Daeves with respect to trade-marks, or rights related and Fritz Steinberg. with high tensile strength at elevated temperatures and re­ thereto, in which interests are held by, and sistance to scaling. such property itself constitutes interests Processfor production of proges­ 34 3 2 3 ,1 3 8 3 /9 /4 0 Gedeon Richter Vegyeszeti L. Vargha et al______held therein by, nationals of a foreign coun­ Gyar R. T. terone. Method for the sintering of pow­ 28 try (Germany); 3 2 6 ,7 5 7 3 /2 9 /4 0 Kohle-und Eisenforschung G. W. Bischof...... m. b. H. dery substances. 6. Having made all determinations and 28 7 /2 4 /4 0 Wilhelm Rohn, Franz Bollen­ W. Rohn et al...... Articles having a high creep re- taken all action, after appropriate consulta­ " 4 7 ,2 9 4 rath andHeinrich Cornelius, sistance at elevated tempera­ tion and certification, required by said Exec­ tures. 28 utive Order or Act or otherwise; and 3 5 1,1C6 8 /3 /4 0 Albert W. Schroeder, A. Schroder et al...... Method of producing soap...... Hermann Hemesath and 7. Deeming it necessary in the national in­ Ernst Hammel. terest; Troponwerke Dinklage & Co. F. Kulz et al...... Production of tetrahydroisoQuin- 28 352, 324 8 /1 2 /4 0 olipe compounds. * 28 hereby vests in the Alien Property Cus­ 3 5 5 ,8 1 0 9 /7 /4 0 Heinrich Ulrich and Gustav Steinbrunn. todian the property hereinbefore de­ Method of manufacturing, vis­ 28 1 1 /9 /4 0 Kurt He®____ , ______- K. Hess______scribed in subparagraph 5, to be held, 3 6 5 ,1 0 5 cose. Kohle-und Eisenforsehung G. K. Daeves______Method for increasing the dura- 28 used, administered, liquidated, sold or 3 6 8 ,9 1 3 1 2 /6 /4 0 bility of highly stressed wind­ otherwise dealt with in the interest of m. b.H. ing cables. Phrix Arbeitsgemeinschaft.... 0. Molden-Hauer et al. Polycondensation or polymeri­ 28 and for the benefit of the United States. 3 8 3 ,0 3 9 3 /1 2 /4 1 zation products and method Such property, and any or all of the for producing the same. proceeds thereof, shall be held in an ap­ Tahi-Icbiro Shimizu------« ... T. Shimizu... _____ Synthetic resins and the process 89 3 8 6 ,9 4 1 4 /4 /4 1 for making the same. propriate special account or accounts, pending further determination of the [F. R. Doc. 43-12581; Piled, August 3, 1943; 10:31 a. m.] Alien Property Custodian. This shall not be deemed to limit the powers of the Alien Property Custodian to return such [Vesting Order 1828] ods of manufacture and procedure, custom­ property or the proceeds thereof or to ers’ lists, labels, machinery, and other equip­ indicate that compensation will not be R . A v e n a r iu s an d C o . a n d / o r A v e n a r iu s ment) ; paid in lieu thereof, if and when it should B r o s . (3) Any interest of any nature whatsoever in, and any rights and claims erf every char­ be determined that such return should Re: Trade-marks owned by R. Aven­ acter and description to, said business, good­ be made or such compensation should be arius & Company and/or Avenarius will and trade-mark and registration thereof, paid. Brothers. and Any person, except a national of a des­ Under the authority of the Trading (4) All accrued royalties payable or held ignated enemy country, asserting any with the Enemy Act, as amended, and with respect to said trade-mark and all damages and profits recoverable at law or claim arising as a result of this order Executive Order No. 9095, as amended, in equity from any person, firm, corpora­ may file with the Alien Property Cus­ and pursuant to law, the undersigned, tion or government for past infringement todian a notice of his claim, together after investigation: thereof, > with a request for a hearing thereon, on 1. Finding that Carbolineum Wood Pre­ • b. The trade-marks registered in the United Form APC-1, within one year from the serving Company, a Wisconsin corporation of States Patent Office under the numbers and date hereof, or within such further.time Milwaukee, Wisconsin, is a business enterprise on the dates set out in Exhibit A Part n at­ within the United States; tached hereto and made a part hereof and as may be allowed by the Alien Property 2. Finding that R. Avenarius & Company the registrations thereof, together with Custodian. Nothing herein contained and Avenarius Brothers, also known as , (1)' The respective good-will of the business shall be deemed to constitute an admis­ Gebruder Avenarius, are partnerships or­ in the United States and all its possessions sion of the existence, validity or right ganized under the laws of Germany and to whit*, the trade-marks are appurtenant, therefore are nationals of a foreign coun­ (2) Any and all indicia of such good-will to allowance of any such claim. try (Germany); (including but not limited to formulae, The terms “national”, “designated en­ 3. Finding that the property described in whether secret or not, secret processes, meth­ emy country” and “business enterprise subparagraph 5-a hereof is held by said Car­ ods of manufacture and procedure, customers’ within the United States” as used herein bolineum Wood Preserving Company as agent lists, labels, machinery, and other equipment). shall have the meaning prescribed in for the beneficial interest of said R. Avenarius (3) Any interest of any nature whatsoever & Company and/or Avenarius Brothers who in, and any rights and claims of every char­ section 10 of said Executive Order. are the equitable owners thereof; acter and description to, said business, good­ Executed at Washington, D. C., on 4. Finding that the property described in will and trade-marks and registrations July 17, 1943. subparagraphs 5-b and 6-c hereof is the thereof, and [ s e a l ! L e o T. C r o w l e y , property of said R. Avenarius & Company (4) All accrued royalties payable or held and /or Avenarius, Brothers; with respect to sgid trade-marks and all dam­ » Alien Property Custodian. ages and profits recoverable at law or in 5. Finding that the property described as Exhibit A—Part I follows: equity from any person, firm, corporation or a. The. trade-mark registered in the government for past infringement thereof. Trade-mark which is identified as follows United States Patent Office under the num­ c. All interests and rights (including all and the title to which stands of record in ber and on the date set out in Exhibit A royalties and other monies payable or held the United States Patent Office in the name Part I attached hereto and made a part hereof with respect to such -interests and rights of Carbolineum Wood Preserving Company. and the registration thereof, together with and all damages for breach of the agreement (1) The goodwill of the business in which hereinafter described, together with the right Reg. Character of goods the United States and all its possessions to to sue therefor) created in R. Avenarius & No. Date which the trade-mark is appurtenant, Company and/or Avenarius Brothers by vir­ (2) Any and all Indicia nof such goodwill tue of an agreement dated July 17, 1922 (in­ 400,890 4/6/43 Liquid wood preservative used as a (including but not limited to formulae, cluding all modifications and supplements fungicide and an insecticide. whether secret or not, secret processes, meth­ thereto, including, but not by way of limi­ 10914 FEDERAL REGISTER, Thursday, A ugust 5, 1943

Part II (ii) The maximum prices for sales by Trade-marks which are identified as follows and the titles to which stand of record in jobbers to installers or retailers out of the United States Patent Office in the names of the registrants Indicated respectively, except stock or on direct shipments of less than where other record owner is shown: 200 pounds from point of manufacture shall be the prices contained in subdi­ Reg. No. Date Registrant Character of goods vision (d) subject to successive discounts of 17 % and 20 %. Such maximum prices 14,048 2/ 8/87 Avenarius Brothers.______Preservative liquids. shall include free delivery within cus­ (Renewed) Record title in R. Avenarius & Co. tomary free delivery zones. 161,402 11/14/22 R.-Avenarius & C o..______Preserving paint. (Expired) (2) Jobber to industrial or commer­ 271,868 6/17/30 R. Avenarius & Co...... Chemical preparations for the protection of cial user. The maximum prices for all trees, etc. gales by jobbers to industrial or commer­ 341,056 12/ 1/36 R. Avenarius & Co...... Chemical preparations for the protection of trees, etc. cial users shall be the prices contained in subdivision (d) subject to successive . [P. R. Doc. 43-12580; Piled, August 3, 1943; 10:32 a. m.] discounts of 17% and the customary dif­ ferential discount allowed during the month of March 1942 to that particular class of purchaser for purchases of simi­ OFFICE OF PRICE ADMINISTRATION. other obligation, no person shall sell and lar commodities. deliver, and no person shall buy and (3) Jobber to ultimate consumer (sales L i s t o p I n d iv id u a l O r d e r s G r a n t in g A d ­ receive any plastic pipe, plastic tubing, j u s t m e n t s , e t c ., U n d e r P r ic e R e g u l a ­ at retail). The maximum prices for all t io n s plastic pipe fittings, and/or plastic tub­ sales by jobbers to ultimate consumers ing fittings,' in the course of trade or (sales at retail) shall be the prices con­ The following orders were filed with business at prices higher than those set tained in subdivision (d). Such maxi­ the Division of the Federal Register on forth below. Lower than maximum mum prices shall include free delivery August 2, 1943. prices may be charged or paid. The within customary free delivery zones. Order number: Name maximum prices computed under this (c) Maximum prices for other sell­ BPS 10, Order 7, Eastern Gas & Fuel subparagraph shall be subject to all cash Amendment 1. Associates Inc. discounts, allowances, and price differ­ ers—(1) Retailer’s and installer’s maxi­ BPS 6, Order 45___ Knoxville Iron Co. entials established by the seller and in mum prices (on an Uninstalled basis). MPR 134, Order 9- North Carolina effect to his various classes of customers The maximum prices for all sales by Equipment Co. during the month of March 1942 for sim­ retailers and installers on an uninstalled M P R 13 6, a s Atlas Engine Co. amended, Order ilar commodities such as brass pipe, cop­ basis shall be the prices contained in 83. per tubing, brass fittings and/or copper subdivision (d). Such maximum price's fittings. shall include free delivery within cus­ Copies of these orders may be ob­ (a) Manufacturer’s maximum prices— tomary free delivery zones. tained from the Office of Price Admin­ ~(1) Manufacturer to jobber. The maxi­ istration. (2) Automotive installer’s maximum mum prices for sales by manufacturers buying and selling prices, (i) The max­ E r v in H . P o l l a c k , to jobbers, f. o. b. point of manufacture, Head, Editorial & Reference Section. shall be the prices contained in subdi­ imum prices for all sales to automotive [P. R. Doc. 43-12629; Piled, August 3, 1943; vision (d) subject to a discount of 50%. installers by any person shall be the 3:09 p. m.j Upon shipments of 200 pounds and over, prices contained in subdivision (d) sub­ freight on the entire shipment shall be ject to a discount of 25%. Such maxi­ allowed to destination. mum prices shall include free delivery [Arndt. 8 to Order A-l Under MPR 188] (2) Manufacturer to all purchasers within customary free delivery zones. other than jobbers, (i) The maximum (ii) The maximum prices for all sales P l a s t ic P i p e T u b in g , P i p e F it t in g s and prices for sales by manufacturers to all by automotive installers, whether in­ T u b in g F it t in g s purchasers other than jobbers on direct stalled or uninstalled, shall be the prices modification o p m a x im u m p r ic e s shipments of 200 pounds and over, frbm contained in subdivision (d). Such in­ point of manufacture, shall be the prices Amendment No. 8 to Order No. A-l stallation charges as are established by contained in subdivision (d) subject to any applicable regulation issued by the Under § 1499.159b of Maximum Price Reg­ successive discounts of 17% and 25% and ulation No. 188—Manufacturers’ Maxi­ Office of Price Administration may be 10%. Such maximum prices shall in­ added to the maximum prices listed here­ mum Prices for Specified Building Ma­ clude free delivery to point of destina­ terials and Consumers’ Goods Other tion designated by the purchaser. in provided such installation charges are Than Apparel. di) The maximum prices for sales by stated separately on the invoice. An opinion accompanying this amend­ manufacturers to all purchasers other (d) Tables of maximum list prices. ment, issued simultaneously herewith, than jobbers (1) out of warehouse stock has been filed with the Division of the or (2) on direct shipments of less than T a b l e 1.— M a x i m u m L i s t P r i c e s f o r P l a s t i c P i p e Federal Register. 200 pounds from point of manufacture, [List prices are per foot] Paragraph (a) (9) is added to read shall be the prices contained in subdi­ as follows: vision (d) subject to successive discounts Size...... Ü" %" 1" 114" 1H" of 17 % and 20 %. Such maximum prices, List price...... $0.58 $0.78 $1.12 $1.33 $1.67 (9) Modification of maximum prices of Size______2" 2H" 3" 3 W 4" plastic pipe, plastic tubing, plastic pipe shall include free delivery within cus­ List price...... $2.24 $3.53 $4.68 $5.62 $7.22 fittings, and plastic tubing fittings— tomary free delivery zones. (i) Scope of this amendment. This sub- (b) Jobber’s maximum prices—(1) paragraph (9) sets maximum prices for Jobber to installer or retailer, (i) The T a b l e 2— M a x i m u m L i s t P r i c e s f o r P l a s t i c P i p e sales and deliveries of plastic pipe, plas­ maximum prices for sales Iby jobbers to F i t t i n g s tic tubing, plastic pipe fittings, and plas­ installers or retailers on direct ship­ tic tubing fittings manufactured from ments of 200 pounds and over, from point Size...... ? 4 " 1" 1)4" 2" Co-Polymer Vinyl and Vinylidene chlo­ of manufacture, shall be the prices con­ 90° Elbow_____ $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 rides commercially known as “Saran B tained in subdivision (d) subject to suc­ Tee, straight...____ 1.50 1.70 2.00 2.40 2.80 3.20 11.” cessive discounts of 17% and 25% and Coupling...... 50 .60 .70 .80 .95 1.20 . (ii) Maximum prices. On and after 10%. Such maximum prices shall in­ Reducer...... 65 .75 1 Oft 1 40 Cap...... 5 0 .60 .70 .80 .95 Ï. 20 the 9th day of August, 1943, regardless clude free delivery to point of destination Companion Flange... 1.35 1.55 1.75 2.00 2. .40 3.00 of any contract, agreement, lease or designated by the purchaser. Blind Flange______.1.35 1.55 1.75 2.00 2.40 3.00 FEDERAL REGISTER, Thursday, A ugust 5, 1943 10915 List “Installer” means any person custom­ T able 3—Maximum List P rices for P lastic Plug size male I. P. thread (size): price arily engaged in the installation of T ubing. F ittings L?"...... $0.10 plumbing, heating, refrigeration, and/or Half-union coupling size O. D. tube to y n ___ *____ ...... 0.11 air-conditioning systems and furnishes male I. P. thread, exclusive of cou- List _I__I...... — ______0.13 an installation service, but does not in­ pling nut (size): price ...... 0.18 ______0.20 clude automotive installers. Union coupling size O. D. tube to “Automotive installer” means any per­ O. D. tube, exclusive of coupling son who is engaged in the repair or main­ nuts (size): tenance of automotive vehicles. y8 x y8" ------$0-09 “Retailer” means any person who sells 5ie x %e"...... -...... — 0- 00 to the ultimate consumer. % X ------...... — — °-}J % x y4 " ------0.09 “Industrial or commercial user” means %e x %6"...... — 0-11 3/8X 3/8" ------0.13 any person who customarily purchases y2 x% "------o .i6 %6 x iie”------—...... 0.15 for use in an industrial plant or commer­ % X y2" ...... - ...... 0.17 % x y2"— ■...... 0.16 cial enterprise, such as an oil or sugar % X % "------0.36 *% x % "...... 0.36 refinery, a chemical plant, shipyard, or % x % "-----v ...... —...... 0 4 2 . 3/4 X%”------~ 0-42 railroad. Half-union coupling size O. D. tube to Coupling nut for flare fittings, size “Ultimate consumer” means a person female I. P. thread, exclusive of O. D. tube (size): who purchases for use.rather than resale, coupling nut (size): i/8" ______$0.10 other than an industrial or commercial % x 3/8 " ------—------$0.23 W'_____<------— - o.io y2 x y2 ------—- 0 -26 * y4" ...... 0.10 user. Tube-pipe elbow size O. D. tube to I. P. %6"...... >-...... <>.12 This Amendment No. 8 shall become thread, exclusive of coupling nut %" ______.1— i o. 14 effective August 9, 1943. (size): ------.-...... 0.15 ya x % " ...... * o .ia ...... — — - ...... 0.16 (Pub. Laws 421 and 729, 77th Cong.; %e x y8 " _ — ...... — o.i8 %" ------0.25 E.O. 9250, 7 P.R. 7871; E.O. 9328, 8 F.R. % x y8 " ...... ——- ...... — o .i9 34” ______.______0.30 Tee, straight' size O. D. tube, exclusive 4681) % X y4" ------r — ...... — - 0.23 of coupling nuts (size): Issued this 3d day of August 1943. % x % ------0.24 1/" ...... $0.18 P r e n t is s M. B r o w n , yi6xy4" — — ------0.25 4 6"— ______- ...... o-18 Administrator. i/2 x 3/8" ...... 0.28 i/4" ______— ...... 0.20 %6" - ~ ...... 0.21 [F. R. Doc. 43-12618; Filed, August 3, 1943; ayB" ______0.25 3:09 p. m ] Tee, reducing size O. D. tube exclu­ ...... -...... ----- 0.28 sive of coupling nuts (size): y2” ------0.32 i/,” ______;______$0. 28 %" ______0. 45 3/4 " ...... 0.41 3,4" ...... 0. 59 [Amdt. 10 to Order A-l Under MPR 188] Asphalt T a b l e 4 .— M a x i m u m L i s t P r i c e s f o r P l a s t i c T u b i n g [List prices are per 100 ft.] MODIFICATION* OF MAXIMUM PRICES Amendment No. 10 to Order No. A-l H" Hi" H" Hi" 54" Hi" H" 54" 54" under § 1499.159b of Maximum Price Regulation No. 188—Manufacturer’s $1,50 $2.30 Maximum Prices for Specified Building .031 wall thickness______—— $2.60 $4.40 $6.10 $7.80 $9.60 $11.30 $13.10 $16.50 $20.00 5.70 8.30 10.80 13.30 15.80 18.30 23.40 28.40 Materials and Consumers’ Goods Other 7.00 10.50 1400 17.40 20.90 24.30 31.30 38.20 33.90 44.30 54.70 Than Apparel. 69.90 Modification of maximum prices in Maximum Price Regulation 188. An For Tubing, Boxed, 25' per box, above list prices may be increased by $0.75 per hundred lineal feet. opinion accompanying this amendment, issued simultaneously herewith, has been (iii) Notification of purchasers of ex­ graph showing the date of the sale, the filed with the Division of the Federal istence of this subparagraph (9). Every name and address of the purchaser, the Register. person selling plastic pipe, plastic tub­ manufacturer’s plate number or the job­ Paragraph (a) (11) is added to read as ing, plastic pipe fittings, apd /or plastic ber’s plate number, the list price of each follows: tubing fittings subject to this subpara­ unit, the discount allowed, and the point (a) Modification of maximum prices graph (9) shall, before making an initial of delivery of the shipment. in Maximum Price Regulation No. 188. sale to each purchaser, notify such pur­ (vi) Reports. All persons making The provisions of Maximum Price Regu­ chaser of the existence of this subpara­ sales subject" to the provisions of this lation No. 188 as applied to certain com­ graph, and, upon request of su'ch pur­ subparagraph (9) shall submit such re­ modities subject thereto are modified in chaser, make available a copy of it for ports as the Office of Price Administra­ accordance with § 1499.159b of Maximum examination. tion may at any time request, subject Price Regulation No. 188 as hereinafter (iv) New products. The maximum to the approval of the Bureau of -the provided. list price of any article of plastic pipe, Budget in accordance with the Federal ***** plastic tubing, plastic pipe fittings, Reports Act of 1942. (11) Modification of maximum prices and/or plastic tubing fittings, for which (vii) Definitions. For the purpose of for asphalt and/or tar base roof coatings prices are not established in subdivision this subparagraph (9) the term: and cements in containers—(i) Expla­ id) of this subparagraph (9) shall be “Manufacturer” means a person who nation. The purpose of the new method the price determined in accordance with manufactures or extrudes synthetic or­ of pricing provided by this subparagraph the appropriate method contained in ganic thermoplastic into plastic pipe, (11) is to permit a manufacturer who is Maximum Price Regulation No. 188 as plastic tubing, plastic pipe fittings or now packing asphalt and/or tar base roof amended. plastic tubing fittings. coatings and cements in containers (v) Records. Every person selling “Jobber” means a person other than a which have increased in cost to adjust plastic pipe, plastic tubing, plastic pipe “manufacturer” who purchases plastic his maximum prices and add the exact fittings, and/or plastic tubing fittings pipe, plastic tubing, plastic pipe fittings, amount of the increase in the cost of the subject to this subparagraph (9), shall or plastic tubing fittings from a “manu­ containers and in receiving delivery £f have available for inspection by the Office facturer” for resale, customarily receives them. The method permits him to ac­ of Price Administration for so long as the count for differences in container costs Emergency Price Control Act of 1942, physical possession, and who sells pri­ marily to an installer, industrial user or without permitting him to increase the as amended, remains in effect, a record price per unit of the asphalt and/or tar of each sale made under this subpara­ retailer. 10916 *AL REGISTER, Thursday, August 5, 1943

base roof coatings and cement packed in container cost” reflects an increase over 188, issued by the Office of Price Admin­ the container. The method is formu­ his previous “current container cost”, re­ istration. lated for low-price sellers of these prod­ adjust his maximum prices for the en­ You may increase your established maxi­ ucts who are unable to sell them at their suing quarterly period to include such mum price to the same extent, namely, established maximum prices because of increases provided such readjusted max­ _— r __---- Our increase and adjusted max­ the increased cost of the containers. imum prices do not exceed the prices imum price does not exceed the amount per­ Subdivision (ix) specifies the maximum contained in subdivision (ix). If the re- mitted by the Order of the Office of Price prices in excess of which no manufac­ Administration. determination reflects a decrease of his If our container cost decreases, you will turer may sell asphalt jmd/or tar base “increased container cost”, the manufac­ be notified and must reduce your established roof coatings and cements if he adjusts turer must readjust his maximum prices maximum price accordingly on these com­ his established maximum prices in ac­ and reduce his adjusted maximum prices modities you purchase from us at the reduced cordance with this subparagraph. Any by the amount of the decrease for the prices.. manufacturer whose established maxi­ ensuing quarterly period. (viii) Records and reports—(a) Rec­ mum prices for these commodities are (iii) Commodity and geographical ords% Manufacturers shall keep records higher than the prices itemized in sub­ coverage. This subparagraph (11) ap­ showing how they compute their adjust­ division (ix) may continue to sell at his plies to all sales of asphalt and/or tar established maximum prices without any ed or readjusted maximum prices. adjustment. base roof coatings and cements in con-” (b) Reports. Within 20 days after tainers in the forty-eight states of the any adjustment or readjustment of max­ (ii) Pricing method. To figure the ad­ United States and the District of Co­ imum prices under this subparagraph, justed maximum price to any class of lumbia. The only commodities covered, each manufacturer shall submit a report purchasers for the commodity in con­ by the subparagraph are plastic cement, to the Building Materials Branch, Office tainers, the manufacturer shall asbestos roof coating and* roof coating of Price Administration, Washington, (o) Determine the base container cost.without asbestos fiber. D. C., showing: The manufacturer shall take as the “base (iv) Container deposits. If. the con­ (1) The “base container cost”; container cost” his average direct cost tainer used by any manufacturer is one (2) The “current container cost”, in­ of each type or size of container during which is capable of reuse, and if the cluding a description of the current con­ March 1942. “Direct cost” means the manufacturer made a- deposit charge for tainers, quantity purchased, and the net cost, at the manufacturer’s plant, of containers during March 1942, he shall name and address of the supplier or the container and closure, but it does not be permitted to adjust his maxi­ suppliers; not include costs of filling, closing, label­ mum prices. If any manufacturer made (3) The adjusted or readjusted maxi­ ing, or packing. If a manufacturer is no deposit charge during March 1942, mum price and the method by which unable to. compute his base container and now desires to do so, he must re­ such price was established; cost because of lack of purchases during duce his established maximum price of (4) Whether, in the case of a read­ March 1942, he shall determine his base his product by an amount equal to y3 ' justment which results in a decrease, the container cost by any purchase during of his “base container cost”. If a man­ manufacturer has notified his purchasers the period December 1941 through Feb­ ufacturer adjusts his established maxi­ of the decreased prices applying on sales ruary 1942, or if no purchases were made mum prices to recover his “increased for the ensuing quarterly period, and the during this period, by the offering price container cost” and desires to charge a amount of the decrease. during that period by the manufacturer’s container deposit, he must reduce his usual source of supply. (ix) Adjusted maximum prices. The adjusted maximum price in the amount following tablé of prices are those prices (b) Determine the current container of his “increased container cost” plus % in excess of which no manufacturer may cost. The manufacturer shall take as of the “base container cost”. sell or deliver his products after he the “current container cost” his average (v) Wholesalers, jobbers and retailers. has adjusted his established maximum direct cost/of each type or size of con­ This subparagraph (11) permits adjust­ prices. tainer for any quarterly period subse­ ments by manufacturers. Other levels quent to January 1, 1943. “Direct cost” of distribution are permitted to adjust means the net cost, at the manufacturer’s Freight F. o. b. their maximum prices to the same ex­ equalized shipping plant, of the container and closure, but tent as the manufacturer. Any pur­ with com­ point (No it does not include cost of filling, closing, chaser who buys asphalt and/or tar base petitive freight shipping equaliza­ labeling, or packing. roof coatings and cement in containers points tion) (c) Determine the increased container for the purpose of resale, may increase cost. Taking his “current container cost” his established maximum price by the LCL CL LCL CL the manufacturer shall then subtract exact amount which he is required to the “base container cost.” The differ­ pay his supplier in excess of the maxi­ Plastic cement (prices in Cbs.) ence, if any, represents the “increased mum price previously charged by the container cost.” said supplier. It is the purpose of this Bbl. (approximately 500 to 600 lbs.) containers.. .027 .024 .025 .022 (d) Determine the adjusted maximum subdivision to permit wholesalers, job­ H bbl, (approximately 300 lbs.) price. The manufacturer shall next add bers and retailers to increase their max­ up to barrel containers . .029 .026 .27 .024 100 lb. up to barrel containers. .035 .032 .033 .030 the “increased container cost” to his imum prices by the exact amount of the 50 lb. up to K)0 lb. containers_ .038 .035 .036 .033 established maximum price. If the re­ “increased container cost”, provided such 26 lb. up to 50 lb. containers!___ .043 .04 .041 .038 10 lb. up to 25 lb. containers____ .049 .045 .047 .043 sult is less than the prices itemized in “increased container cost” is paid by 61b. up to 10 lb. containers . .057 .052 .055 .050 subdivision (ix), such result shall be the them to their supplier. 1 lb. up to 5 lb. containers_____ .077 .07 .075 .068 adjusted maximum price. If the result ‘ Mode of pricing. The amount of Asbestos roof coating (prices per is the same as or higher than the prices the increase may be reflected in the mode gallon) itemized in subdivision (ix), the prices in of pricing which each seller used during Bbl. (approximately 50 to 60 subdivision (ix) shall be his adjusted the month of March 1942. gallons) containers______.263 .235 .243 .215 maximum prices. No manufacturer may (vii) Notification to purchasers by H bbl. (approximately 30 gal- Ions) up to barrel containers .288 .262 .268 .242 sell in excess of thé sum of his “in­ manufacturers. All manufacturers sell­ 6 gallon up to barrel containers .322 .289 .302 .269 creased container cost” plus his estab­ ing asphalt and/or tar base roof coatings 1 gallon up to 5 gallon containers. .394 .356 .374 ,336 lished maximum prices, even if such total and cements in containers under the Poof coating without asbestos fiber does not equal the prices contained in authority of this subparagraph shall (prices per gallon) subdivision (ix). send the following notice to every pur­ Bbl. (approximately 60 to 60 (e) Changes in current container cost. chaser thereof at the time of the first gallons) containers_____ .246 ,226 .226 .206 Each manufacturer must redetermine sale: Vt bbl. (approximately 30 gal- Ions) up to barrel containers. . .28 .253 .26 .233 his “current container cost” upon a quar­ We have increased our established maxi­ 6 gallon up to barrel containers. .314 .28 .294 .260 terly basis. If the manufacturer bas de­ mum price f o r______from ______1 gallon up to 5 gallon containers. .382 .349 .362 .329 termined his “current container cost” in to ------The difference represents our accordance with subdivision (ii) (b), he increased container cost. This increase is N oth: The term “up to” does not mean inclusive of permitted by Amendment No. 10 to Order No. the next listed number following the word “to." For may, if the redetermination of “current example, 1 gallon up to 5 gallon containers, does not in­ A—1 under Maximum Price Regulation No! clude 5 gallon containers. FEDERAL REGISTER, Thursday, A ugust 5, 1943 10917

This Amendment No. 10 shall become Executive Order No. 9322, Executive Or­ area mentioned established under the effective August 4, 1943. der No. 9334, War Production Board Sup­ provisions of Revised Maximum Price plementary Directive No. 1-J, Food Dis­ Regulation No. 122, is less than $5.00 per Note: The reporting requirements of this tribution Administration Food Directive ton for lump, nut and intermediate sizes, amendment have been approved by the Bu­ or $4.50 per ton for stoker coal, or $3.00 reau of the Budget in accordance with the No. 3 and Food Directive No. 9, the fol­ Federal Reports Act of 1942. lowing order is prescribed: per ton for slack coal, is hereby per­ (a) The Director of the Office of Price mitted and authorized to increase his (Pub. Laws 421 and 729, 77th Cong.; E.O. Administration for the Territory of the prices to the foregoing amounts. 9250, 7 F.R. 7871; E.O. 9328, 8 F.R. 4681) Virgin Islands is authorized and directed 4. This order shall take effect upon to exercise the functions, duties, powers, the execution hereof and remain in force Issued this 3d day of August 1943. until modified or revoked by the Re­ P rentiss M. Brown, authority and discretion conferred upon Administrator. the Administrator for the purpose of per­ gional Administrator. mitting the efficient rationing of all ma­ (Pub. Laws 421 and 729, 77th Cong.; [F; R. Doc. 43-12617; Filed, August 3, 1943; terial in the Territory of the Virgin E.O. 9250, 7 F.R. 7871) 3:08 p. m.] Islands. Provided, however, That any program initiated pursuant to this au­ Dated at Cleveland, Ohio, March 11th, thorization shall be subject to the ap­ 1943. Birkett Williams, [2d Rev. Gen. Order 20] proval of the Administrator for the L. Ninth Region of the Office of Price Ad­ Regional Administrator. Delegation of Authority to Act for the ministration. Administrator [F. R. Doc. 43-12603; Filed, August 3, 1943; (b) Any order issued by the Director 11:50 a. m.] authorization of director for the terri­ pursuant to this delegation of authority tory OF PUERTO RICO « shall have the same force and effect as if issued by the Administrator. Revised General Order 20 is amended (c) The authority delegated hereby [Region i n Order G -l Under MPR 280] to read as follows: shall not include the power or-authority Pursuant to the authority conferred to ration farm machinery and equipment. Bulk Milk in Cuyahoga, W ayne and upon the Administrator by Executive Or­ As used herein the term farm machinery Summit Counties, Ohio der No. 9125, Executive Order No. 9280, and equipment shall have the same Order No. G -l under Maximum Price Executive Order No. 9322, Executive Or­ meaning as is given it in paragraph (b) Regulation 280. Order adjusting the der No. 9334, War Production Board Sup­ of War Production Board Supplementary maximum prices of bulk milk sold in plementary Directive No..l-J, Food Dis­ Directive No. 1-K. the counties of Cuyahoga, Wayne, and tribution Administration Food Directive Issued and effective August 3,1943. Summit, in the State of Ohio. (For­ No 3 and Food Directive No. 9, the fol­ merly Order No. Ill, MPR 280, § 1351.- lowing order is prescribed: P rentiss M. Brown, 807-1.) (a) The Director of the Office of Price Administrator. For the reasons set for in the opinion Administration for the Territory of [F. R. Doc. 43-12628; Filed, August 3, 1943; attached hereto and made part hereof, Puerto Rico is authorized and directed 3:09 p. m.] and pursuant to the authority vested in to exercise the functions, duties, powers, the Regional Administrator of Region authority and discretion conferred upon III under the provisions of § 1351.807 of the Administrator for the purpose of Regional, State, and District Office Maximum Price Regulation No. 280 and permitting the efficient rationing of all notwithstanding the provisions of material in the Territory of Puerto Rico. Orders. . § 1351.803 thereof, It is hereby ordered, Provided, however, That any program [Region III Order G -l Under Rev. MPR 122] That: initiated pursuant to this authorization (1) The maximum price for any bulk shall be subject to the approval of the Coal in Mt. Vernon, I nd. milk supplier in the counties of Cuya­ Administrator for the Ninth Region of Order No. G -l under Revised Maxi­ hoga, Wayne, and Summit, in the State the Office of Price Administration. mum Price Regulation 122. Order ad­ of Ohio shall be $3.76 per cwt. or $3.20 (b) Any order issued by the Director justing maximum prices for coal sold at per 10 gallon can for bulk milk of 3.5% pursuant to this delegation of authority retail at Mt. Vernon, Indiana. (Formerly butterfat content. shall have the same force and effect as Order No. CV-122-19.) (2) Any bulk milk supplier who sells if issued by the Administrator. In the exercise of the power and au­ and delivers milk testing over 3.5% but­ (c) The authority delegated hereby thority delegated to the Regional Ad­ terfat content may charge and receive shall not include the power or authority ministrator under § 1340.259 (a) (1) of not more than 4^ per cwt. additional for to ration farm machinery and equip­ Revised Maximum Price Regulation No. each point of butterfat contained in said ment. As used herein the term farm 122 and upon the facts found and for the milk in excess of 3.5%, and bulk milk machinery and equipment shall have the reasons' stated in the annexed opinion, suppliers selling milk testing below 3.5% same meaning as is given it in paragraph It is hereby ordered: butterfat content must reduce their max­ (b) of War Production Board Supple­ 1. This order applies only to dealers in imum price 4$ or more per cwt. for each mentary Directive No. 1-K. solid fuel as defined by Revised Maxi­ point of butterfat content below 3.5% Issued and effective August 3, 1943. mum Price Regulation No. 122 located contained in said milk. at Mt, Vernon, Indiana, and to sales and P rentiss M. Brown, (3) Each bulk milk supplier shall no­ y Administrator, deliveries of coal in transactions gov­ tify each fluid milk distributor in the erned by such regulation to purchasers Counties of Cuyahoga, Wayne, and Sum­ [F. R. Doc. 43-12627; Filed, August 3, 1943; situated in the City of Mt. Vernon and mit, in the State of Ohio to whom he sells 3:09 p. m.] portions of Posey County, Indiana with­ milk, by letter, of the adjustment per­ in five miles of the corporate limits of mitted in this order. the City of Mt. Vernon. (4) Definitions—(a) Bulk milk. For [2d Rev. Gen. Order 21] 2. This order further applies only to the purpose of this order, bulk milk is coal of equivalent or comparable quality defined to mean all cows’ milk produced Delegation of Authority to Act for the to that sold during the base period pro­ and then assembled and cooled at a Administrator vided by the regulation which is re­ country plant, a milk processing plant, authorization of director for the terri­ ceived by such dealers by rail shipment, or a milk cooling station and then sold tory OF THE VIRGIN ISLANDS or which is transported by truck from to either (1) fluid milk distributors or mines located more than fifteen miles (2) bulk milk suppliers in the Counties Revised General Order 21 is amended from the corporate limits of Mt. Vernon, to read as follows: of Cuyahoga, Wayne, and Summit in the Indiana. State of Ohio. Pursuant,to the authority conferred 3. Any such dealer whose maximum price for such coal delivered upon the (b) Bulk milk suppliers. For the pur­ upon the Administrator by Executive Or­ pose of this order bulk milk suppliers is der No. 9125, Executive Order No. 9289, premises of any purchaser within the 10918 FEDERAL REGISTER, Thursday, A ugust 5, 1943 defined to mean any individual, corpo­ hive oven furnace coke produced in the ration, partnership, or any other organ­ The above prices are applicable both State of Pennsylvania); briquettes made to sales on a coupon basis and on a cash ized group of persons or successors of from coke or coal; and sea coal used for the foregoing who operates (1) a coun­ basis. foundry facings. Hie term does not in­ H. Sales of ice at wholesale. Capital try plant (2) a milk processing plant or clude wood or wood products. (3) a milk cooling station, and who lee Refrigerating Company, Irvington V. This order shall remain in effect Ice and Coal Company, Broad Ripple Ice purchases raw fluid milk from producers until modified or revoked by the Regional and then sells or offers for sale such Administrator. and Manufacturing Company, National fluid milk in bulk lots to either <1> fluid Ice and Coal Company and Indianapolis Issued March 16,1943. Ice .and Fuel Company are hereby milk distributors or <2) other (bulk Effective March 16, 1943. suppliers in the counties of Cuyahoga, granted the following adjusted maximum Wayne, and Summit in the State of Birkett L. Williams, prices for sales of ice to ice manufac­ Ohio). Regional Administrator. turers, distributors and peddlers for re­ [F. R. Doc. 43-12604; Filed, August 3, 1943; sale at retail: (5) This order shall remain in effect 11:50 a. m.] Adjusted maximum until modified or revoked by the Re­ price per ton gional Administrator. Type of ice sold—class sold to: [Region III Order G-2 Under MPR 154 as A. Block ice: (Pub. Laws 421 and 729, 77th Cong.: E.O. Amended] 9250, 7 F.R. 7871) Wholesale delivered to peddlers, Ice in I ndianapolis, I nd. distributors or stations_____$6.00 Issued this 16th day of December 1942. Wholesale platform to peddlers, Effective December 16,1943. Order No. G-2 under Maximum Price distributors or stations____ 5.50 Regulation 154, as amended. Order on Wholesale platform to ice Birkett L. Williams, application of certain ice manufacturing manufacturers______5.00 Regional Administrator. and distributing companies of Indianap­ B. Crushed ice: Wholesale delivered or platform [F. R. Doc. 43-12607; Filed, August 3, 1943; olis, Indiana, for adjustment of their to peddlers, distributors and 11:52 a. m.] maximum prices for ice. (Formerly Or­ stations______6. 00 der No. CV-154-18.) C. Snow: For the reasons set forth in the opin­ Wholesale delivered to peddlers, [Region m Order G-2 Under Rev. MPR 122] ion attached hereto, and pursuant to the distributors or stations__ 6. 00 Solid F uel in Vanderburg County, I nd. authority vested in the Regional Admin­ Wholesale platform to peddlers, distributors or stations____ 5. 50 Order No.* GW? under Revised Maxi­ istrator of Region IH by virtue of mum Price Regulation 122. Order ad­ §1398.8 (a) and (b) of Maximum Price IH. Fractional sales. Whenever the justing maximum prices for solid fuel Regulation No. 154 and General Order seller’s maximum price, as established sold by dealers in the county of Vander­ No. 32, and notwithstanding the provi­ under this order, results in a figure con­ sions of § 1393.12 of Maximum Price Reg­ taining a fraction of a cent, the seller burg, State of Indiana. (Formerly Order ulation No. 154, It is hereby ordered, No. CV-122-20.) That: may adjust such price to the next high­ For the reasons set forth in the opinion est full cent, attached hereto, and pursuant to the au­ I. Sales of ice at retail. Capital Ice IV. Definition. 1, “Delivery," for the thority vested in the Regional Adminis­ Refrigerating Company, Irvington Ice purpose of this order, means delivery to trator of Region III under the provisions and Coal Company, Broad Ripple Ice and a purchaser at a point other than the of § 1340.259 (a) (1) of Revised Maxi­ Manufacturing Company, National Ice seller’s place of business. mum Price Regulation No. 122 and not­ and Coal Company and Indianapolis Ice 2. “Platform” means delivery to a pur­ withstanding the provisions of § 1340.254 and Fuel Company, and all distributors chaser at the seller’s place of business. thereof, It is hereby ordered, That: or peddlers purchasing ice from them for 3. “Sale at retail” means a sale or sell­ resale at retail are grant«! the following ing to an ultimate consumer. I. Sales by dealers of solid fuel in the adjusted maximum prices for sales of county of Vanderburg, State of Indiana. ice at retail: 4. “Sale at wholesale” means a- sale Any dealer located in the County of Van­ to any person other than an ultimate derburg State of Indiana may add to Type of ice sold— consumer. the maximum prices established for him class sold to; Adjusted maximum This order shall remain in effect until under the provisions of § 1340.254 of Re­ A. Block fce: price for 100 pounds modified or revoked by the Regional Ad­ Domestic retail delivered : ministrator of Region III. vised Maximum Price Regulation No. 122 (100 lbs. or less)______$0. 60 for sales and deliveries of solid fuel, «ommercial retail delivered: Effective March 9, 1943. an amount not to exceed 25$ per ton on Water coolers only_.______o. 60 Issued March 8, 1943. Quantities of one ton or more for each 100 lbs. or less______q qq Birkett L. Williams, type and grade of solid fuel sold and de­ 125 to 500 lbs______' 0. 4O Regional Administrator. livered by such dealer. 525 to 1900 lbs______0. 85 II. Exceptions. Notwithstanding the Domestic retail platform; ]F. R. Doc. 43-12611; Filed, August 3, 1943; 25 lbs__;------0 60 11:47 a. m.j provisions of paragraph I, this order 50, 75 (to next even cent) shall not apply to any sales and deliveries and 100 lbs______q. 50 of solid fuel made by a producer or dis­ Commercial retail platform: tributor at or from a mine, a preparation 100 lbs______0. 40 [Region III Order G-3 Under Rev. MPR 122] plant operated as an adjunct of any „ Per ton mine, a coke oven, or a briquette plant. Carload------•______$4.50 Coal in Clinton, Ind. III. Each dealer subject to the provi­ Order No. G-3 under Revised Maxi­ sions of this order shall maintain all his Type of ice sold—class sold to Adjusted maximum mum Price Regulation 122. Order ad­ customary allowances, discounts and price justing maximum prices for sales of coal other price differentials. by dealers at Clinton, Indiana. (For­ IV. Definitions. A. “Dealer” means a B . ICE CUBES n merly Order No. CV-122-23.) person, corporation, partnership, organi­ Per H Per box Per box Domestic retail delivered or bushel vfSt of tOO Pursuant to § 1340.259 (a) (1) of Re­ zation, or any other organized group of platform___ $0.20 vised Maximum Price Regulation No. 122 persons selling solid fuels, subject to the Commercial retail delivered or platform.. 0.35 0.15 0.45 and upon the facts found and for the provisions of Revised Maximum Price reasons stated in the annexed opinion, Regulation No. 122. C, CRUSHED ICE Per ! Per IS ; It is hereby ordered: B. “Solid fuel” means all solid fuel Domestic retail delivered or bushel lb. bag ; 1. This order applies only to “dealers including all kinds of anthracite and platform___ $0.30 ; $0.20 Commercial retail delivered in solid fuels” as defined by Revised semi-anthracite; bituminous and semi- or platform...... 0.25 Maximum Price Regulation No. 122 mak­ bituminous, sub-bituminous and cannel D. SNOW ing sales and deliveries of coal in trans­ coal; lignite; all coke, including low Per actions subject to said regulation in the temperature coke (except by-product Commercial retail delivered 1 bushel foundry and blast furnace coke, and bee­ o r platform.____ $0.20 City of Clinton, Indiana, and surround­ ing territory within the State of Indiana FEDERAL REGISTER, Thursday, A ugust 5, 1943 10919 within five (5) miles of the corporate at the time of the promulgation of the To the extent that this application has limits of the City of Clinton. General Maximum Price Regulation and been denied, the applicant may within 15 2. Any such dealer whose maximum Maximum Price Regulation No. 154 were days after the date on which this order prices established under Revised Maxi­ abnormally low. Labor, operating and was mailed to it, request the Price Ad­ mum Price’Regulation No. 122 for coal delivery costs have risen appreciably ministrator to review such Order of De­ delivered upon the premises of any pur­ since that time, and applicant’s finan­ nial in the manner provided by Revised chaser located within the above de­ cial position is not sufficiently strong to Procedural Regulation No. 1. scribed area are insufficient to permit absorb such increased costs. It is es­ This order shall remain in effect until the following gross margins over cost tablished to the satisfaction of the Re­ modified or revoked by the Regional Ad­ to him f. o. b. mine of origin of the coal gional Administrator of Region m that ministrator of Region III. sold and federal transportation tax, if the perpetuation of such prices would This order shall become effective any, may increase his maximum prices force the applicant to discontinue opera­ March 3, 1943. to the extent necessary to provide such tions. By reason of the foregoing, it is found (Pub. Laws 421 and 729, 77th Cong.; E.O. margin between his net cost at the mines 9250, 7 F.R. 7871) plus tax, if any, and amount charged by the Regional Administrator of Region the purchaser: ttt that the maximum prices for ice es­ Issued March 3, 1943. A. Where the dealer is required to tablished for the Greensburg Ice Com­ B ir k e t t L. W il l ia m s , transport the coal eight (8) or less miles pany of Greensburg, Indiana, under the Regional Administrator. from point of loading delivery vehicle provisions of § 1393.12 of Maximun\Price Regulation No. 154, as amended, are so [F. R. Doc. 43-12612; Filed, August 3, 1943; to purchaser’s premises—$1.25. 11:49 a. m.] B. Where the dealer is required to low as to cause it substantial hardship transport the coal more than eight (8) and make it impossible for said company miles but not more than fifteen (15) to continue selling or supplying ice; that miles from point of loading delivery such discontinuance will cause its cus­ vehicle to purchaser’s premises—$1.50. tomers substantial inconvenience dispro­ [Region III Order G-3 Under MPR 154, M portionate to the needs of the national Amended, Amdt 1] C. Where the dealer is required to or local economy. transport the coal more than fifteen (15) Accordingly, pursuant to the authority G r e e n s b u r g I c e C o m p a n y , G r e e n sb u r g , miles from point of loading delivery ve­ I n d . hicle to purchaser’s premises—$1.75. vested in the Regional Administrator of 3. This order shall take effect upon thp Region III by virtue of the provisions of Amendment No. 1 to Order No. G-3 execution hereof and remain in force un­ § 1393.8 (a) and (b) of Maximum Price under Maximum Price Regulation 154, Regulation No. 154 and General Order as amended—Ice. (Formerly Order No. til modified, rejected or superseded by 32, the Greensburg Ice Company of order or regulation issued by the Admin­ Greensburg, Indiana, and all distribu­ CV-154-17.) istrator or Regional Administrator. For the reasons set forth in the opinion tors purchasing ice from the Greensburg attached hereto, paragraphs 1 and 2 in (Pub. Laws 421 and 729, 77th Cong.; E.O. Ice Company for resale at retail are the schedules of delivered or platform 9250, 7 F.R. 7871) granted the following adjusted maximum prices in order No. G-3 are hereby re­ Dated at Cleveland, Ohio this 31st day prices for sales of ice at retail: voked, and new Paragraphs 1 and 2, as of March 1943. Delivered or P latform P rices set forth below, are substituted therefor. B ir k e t t L. W il l ia m s , 1. For sales in units of 100 pounds or more: Delivered or P latform P rices Regional Administrator. 1. For all sales in 100# units in excess [P. R. Doc. 43-12606; Piled, August 3, 1943; Price per ton when of the first 100# and including sales in 11:52 a. m.] monthly purchase is— 100# units only when made on the basis of Class of purchaser the 2,000# coupon book: Less than 4000# or 4000# more Price per ton when [Region III Order 0-3 Under MPR 154, as monthly purchase is— Amended] City domestic consumers------$9.00 $8.00 City commercial consumers... 8.00 7.50 G r e e n s b u r g I c e C o m p a n y , G r e en sb tjr g , Rural domestic consumers---- 10.00 9.00 Less than 4,000# Rural commercial consumers.. 9.00 _ 8.60 Class of purchaser and in excess of I n d . 100# (but in- 4,000# eluding 100# or more Order No. G-3 under Maximum Price 2. For sales in units of less than 100 pounds: when sold Regulation 154, as amended—Ice. Or­ under 2,000# coupon book) der. and opinion on application of the When ton price is— Greensburg Ice Company of Greensburg, Indiana for adjustment of its maximum Weight City domestic consumers...... $9.00 $8.00 $8.00 $9.00 $10.00 City commercial consumers... 8.00 7.50 prices for ice. (Formerly Order No. CV- Rural domestic consumers___ 10.00 9.00 154-17.) Rural commercial consumers.. 9.00 8.50 Maximum price for 75# shall On September 8, 1942, the Greensburg oe...... -...... 30i 40ÿ 40)5 Ice Company of Greensburg Indiana, Maximum price for 50# shall filed an application for adjustment of its be...... 20f IH m 2. For sales in units of 100# and less. Maximum price for 25# shall The prices applying to sales in units of maximum prices for ice as established by be...... -...... 10jé 15i 15)5 Maximum Price Regulation No. 154, and 100#, however, shall be permitted only has requested that any adjustment The above prices are applicable both to sales on a when sales are made either for cash or granted be made applicable to all dis­ coupon basis and on a cash basis. on the basis of the 1,000# or 500# tributors purchasing ice from it for re­ The Greensburg Ice Company is hereby coupon book. sale. After due consideration of the ap­ further granted on adjusted maximum plication and other available informa­ price of $5.25 per ton for its platform tion, it has been decided that the sales to distributors who purchase for

application should be granted in part for city

Number of pounds rural city the reasons set forth below. resale at retail. rural Commercial Commercial D o m e stic The applicant is the sole remaining Definitions D o m estic manufacturer of ice in the County of “Delivered,’’ fo'r the purposes of this 100 ...... $0.50 $0. 55 $0.45 $0.50 Decatur in the State of Indiana, and order, means delivered to a purchaser at .40 .45 .35 .40 sells both at retail and at wholesale. a point other than the seller’s place of .25 .30 .25 .25 .15 .20 .15 .15 As the result of a protracted and ener­ business. .10 .10 vating price war between applicant and “Platform” means delivery to pur­ .25 .25 a former competitor, the prices existing chaser at the seller’s place of business. No. 154- -9 10920 FEDERAL REGISTER, Thursday, A ugust 5, 1943

This amendment No. 1 shall remain making purchases for the armed forces Issued January 30, 1943. in effect until modified or revoked by of the United States. the Regional Administrator of Region This amendment no. 2 shall become ef­ Birkett L. Williams, m . fective April 23, 1943. Regional Administrator. This amendment shall become effec­ Issued April 22, 1943. [P. R. Doc. 43-12608; Piled, Ail&ust 3, 1948; tive March 27, 1943. Birkett L. Williams, 11:53 a. m.] (Pub. Laws 421 and 729, 77th Cong.; E.O. Regional Administrator. 9250, 7 P.R. 7871) [P. R. Doc. 43-12605; Piled, August 3, 1943; [Region m Order G-19 Under 18 (c) of Issued this 27th day of March, 1943. 11:53 a. m.] GMPR, Amdt. 1] Birkett L. Williams, Raw Milk in I ndiana, K entucky, Michi­ Regional Administrator. gan, Ohio and West Virginia [F.R.-Doc. 43-12613; Piled, August 3, 1943; [Region III Order G-19 Under 18 (c) of Amendment No. 1 to Order No. G-19 11:49 a. m.] G&fPR] (Formerly Order No. 111-1499.18 (c)-30) Raw Milk in I ndiana, Kentucky, Mich­ under § 1499.18 (c), as amended, of the igan, Ohio and West Virginia General Maximum Price Regulation ad­ justing the maximum rates of haulers of [Region III Order 0-12 Under 18 (c) of Order No. G—19 (Formerly Order No. raw milk in the states of Indiana, Ken­ GMPR, Amdt. 2] ÜI-1499.18 (c)-30) under §1499.18 (c), tucky, Michigan, Ohio, and West Vir­ as amended, of the General Maximum F luid Whole Milk in I ndiana ginia. Price Regulation adjusting the maxi­ For the reasons set forth in the opinion Amendment No. 2 to Order Nor G-12 mum rates of haulers of raw milk in the attached hereto, order No. G-19 adjust­ under § 1499.18 (c), as amended, of the States of Indiana, Kentucky, Michigan, ing the maximum rates of haulers of raw General Maximum Price Regulation. Ohio, and West Virginia. milk in the states of Indiana, Kentucky, (Formerly Order No. III-1499.18 (c)-15.) For the reasons set forth in the opin­ * Michigan, Ohio, and West Virginia, is Adjustment of the maximum prices of ion attached hereto, and pursuant to amended by the addition of two new fluid whole milk sold at retail and whole­ the authority vested in the Regional Ad­ paragraphs, as set forth below: sale in the State of Indiana. ministrator of Region HI under the pro­ For the reasons set forth in an opin­ visions of § 1499.18 (c) and 1499.75 (a) Notwithstanding the provisions of the ion issued simultaneously herewith and (3) of the General Maximum Price Regu­ preceding paragraph, this order shall not under the authority vested in the Re­ lation, and notwithstanding the provi­ apply to any carrier hauling raw .mine gional Administrator of the Office of sions of § 1499.2 thereof, it is hereby or­ from a farmer or other producer thereof Price Administration by § 1499.18 (c) of dered that any carrier other than a to processing plants located, in Cold- the General Maximum Price Regulation, water, Ohio, or Holgate, Ohio. common carrier operating in the states This order shall remain in effect un­ It is hereby ordered, That subparagraph of Indiana, Kentucky, Michigan, Ohio til modified or revoked by the Regional B of paragraph VII be amended to read and West Virginia may add 50 per cwt. Administrator of Region HI. as set forth below. to the maximum rate established for VTI. Definitions. * * * him under § 1499.2 of the General Maxi­ This amendment No. 1 to Order No. G-19 shall become effective at 12:01 a. m. B. Approved fluid milk is defined to mum Price Regulation for the hauling of March 18, 1943. mean fluid cows’ milk, whether raw or raw milk from farmers or other pro­ pasteurized meeting the minimum but- ducers to milk depots, dairies, cooling (Pub. Laws 421 and 729, 77th Cong.; E O terfat content, sanitary and health re­ stations, manufacturing plants or any 9250, 7 F.R. 7871) quirements for fluid milk for human con­ other receiving point. Issued this 17th day of March 1943. Effective February 3, 1943. sumption in the particular area wherein Birkett L. Williams, it is delivered, including standards set (Pub. Laws 421 and 729, 77th Cong., E O. Regional Administrator. by the army or navy purchasing officer 9250, and F.R. 7871) [P. R. Doc. 43-12609; Piled,, August 3, 1943; 11:54 a. m.j